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2011/08/15 - ADMIN - Agenda Packets - City Council - Regular
AGENDA AUGUST 15, 2011 (Mayor Jacobs Out) 6:30 p.m. SPECIAL STUDY SESSION – Council Chambers Discussion Items 1. 6:30 p.m. 2010 Financial Statements – Auditors Presentation and Discussion 7:30 p.m. CITY COUNCIL MEETING – Council Chambers 1. Call to Order 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations 2a. 2010 Financial Statements – Auditors Presentation and Discussion 3. Approval of Minutes 3a. Special City Council Minutes July 25, 2011 3b. Study Session Minutes July 25, 2011 3c. City Council Meeting Minutes August 1, 2011 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 to approve items on the consent calendar. (Alternatively: Motion to add or remove items from the agenda, motion to move items from consent calendar to regular agenda for discussion and to approve those items remaining on the consent calendar.) 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. First Reading – Amendment to City Code Relating to Membership of Human Rights Commission Recommended Action: Motion to approve First Reading of an ordinance amending the St. Louis Park City Code Section 2-212 concerning Human Rights Commission membership and to set Second Reading for September 6, 2011. 9. Communication 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 August 15, 2011 Special Study Session and City Council Agenda 4. CONSENT CALENDAR 4a. Adopt Resolution authorizing parking restrictions on the 4400 Block of Excelsior Boulevard 4b. Approve entering into a contract with Prism (People Responding in Social Ministry) to provide door-to-door dial-a-ride services to all residents of St. Louis Park starting September 1, 2011 4c. Authorize the execution of easement agreements with MN 7200 LLC for ingress, egress and parking relating to Fire Station No. 2 and Northside Park 4d. Adopt a resolution identifying the need for Livable Communities Demonstration Account funding and authorizing an application for grant funds 4e. Approve for Filing Board of Zoning Appeals Minutes August 26, 2010 4f. Approve for Filing Vendor Claims 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: August 15, 2011 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: 2010 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), Schedule of Expenditures of Federal Awards, Audit Review, and Summary Financial Information for the year ended December 31, 2010. POLICY CONSIDERATION: Is the City Council comfortable with the information contained in the Comprehensive Annual Financial Report (CAFR), Schedule of Expenditures of Federal Awards, 2010 Audit Review, and Summary Financial Information for the year ended December 31, 2010 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, 2010. 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 27 consecutive years. FINANCIAL OR BUDGET CONSIDERATION: This report shows the City of St. Louis Park remains in strong financial condition. VISION CONSIDERATION: Not applicable Attachments: 2010 Comprehensive Annual Financial Report 2010 Schedule of Federal Awards 2010 Audit Review 2010 Summary Financial Information Prepared by: Brian A. Swanson, Controller Approved by: Tom Harmening, City Manager Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 2 CITYOFST.LOUISPARK,MINNESOTA COMPREHENSIVEANNUALFINANCIALREPORT FORTHEFISCALYEARENDED DECEMBER31,2010 ThomasHarmening–CityManager Preparedby:DepartmentofFinance MemberoftheGovernmentFinanceOfficers’Association OftheUnitedStatesandCanada Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 3 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 4 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. I. INTRODUCTORY SECTION Letter of Transmittal 3 Certificate of Achievement 9 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 86 Budgetary Comparison Schedule - Park and Recreation Fund Statement 10 90 Budgetary Comparison Schedule - Note to RSI Schedule of Funding Progress for the Postemployment Benefit Plan Statement 11 91 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 5 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 12 96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Statement 13 97 Special Revenue Funds: Combining Balance Sheet - Nonmajor Special Revenue Funds Statement 14 100 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds Statement 15 101 Cable Television Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Statement 16 102 Capital Projects Funds: Combining Balance Sheet - Nonmajor Capital Projects Funds Statement 17 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Projects Funds Statement 18 105 Debt Service Funds: Combining Balance Sheet - Major Debt Service Funds Statement 19 108 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Major Debt Service Funds Statement 20 110 Redevelopment District Funds: Combining Balance Sheet - Major Redevelopment District Funds Statement 21 115 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Major Redevelopment District Funds Statement 22 119 Internal Service Funds: Combining Statement of Net Assets Statement 23 124 Combining Statement of Revenues, Expenditures and Changes in Fund Net Assets Statement 24 126 Combining Statement of Cash Flows Statement 25 128 General Fund: Balance Sheet Statement 26 134 Summary Financial Report: Schedule of Revenues and Expenditures for General Operations - Governmental Funds Statement 27 135 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 6 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS Page Reference No. III. STATISTICAL SECTION (UNAUDITED) Financial Trends: Net Assets by Component Table 1 138 Changes in Net Assets Table 2 140 Governmental Activities Tax Revenues by Source Table 3 145 Fund Balances of Governmental Funds Table 4 146 Changes in Fund Balances - Governmental Funds Table 5 148 Revenue Capacity: Assessed Value/Tax Capacity Value and Estimated Market Values of all Taxable Property Table 6 150 Property Tax Rates - Direct and Overlapping Governments Table 7 152 Principal Property Taxpayers Table 8 153 Property Tax Levies and Collections Table 9 154 Debt Capacity: Ratios of Outstanding Debt By Type Table 10 155 Ratios of General Bonded Debt Outstanding Table 11 156 Direct and Overlapping Governmental Activities Debt Table 12 157 Legal Debt Margin Information Table 13 158 Pledged-Revenue Bond Coverage Table 14 159 Demographic and Economic Information: Demographic Statistics Table 15 160 Principal Employers Table 16 161 Operating Information: Full-Time Equivalent Employees by Function Table 17 162 Operating Indicators by Function Table 18 163 Capital Asset Statistics by Function Table 19 164 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 7 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 8 I. INTRODUCTORY SECTION Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 9 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 10 June 28, 2011 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, 2010. 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 of 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, 2010, 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, 2010, 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 11 Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Profile of the Government The City of St. Louis Park, established in 1886, is a first ring suburb located immediately west of Minneapolis. Thanks to its convenient location, St. Louis Park combines all the cultural amenities of a large metropolitan area with small town friendliness. The City of St. Louis Park currently occupies a land area of 10.8 square miles and serves a population of 45,250. 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. 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 86 as part of the basic financial statements for the governmental funds. 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 12 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 5% 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. Four of the larger projects are: Hoigaard Village – As envisioned, this 10-acre project involved the acquisition and removal of several blighted buildings, installation of a central green, new public infrastructure, as well as construction of 374 multi-family housing units and 25,000 square feet of retail space. To date, all the public elements have been completed and 294 of the housing units have been constructed and are currently leased. 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 sq. ft. “lifestyle” shopping center. This lively retail and entertainment complex features a variety of specialty restaurants (13 total), numerous stores and fashion boutiques, a 14-screen, state-of-the-art movie theater, a grocery store and 28,000 SF of 2nd story office space. 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. This summer construction will begin on the 2nd phase; a stylish 6-story apartment building featuring 120 upscale units, a fitness center, club rooms and a party deck. 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 Class A office buildings. Construction on the first office building is expected to begin within the next several years. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 13 Ellipse on Excelsior – Located at the northwest corner of Excelsior Blvd and France Ave, this 5 story mixed use project consists of 132 market rate apartments, with 16,000 square feet of ground floor commercial development. It was completed in the fall of 2010 and is already fully leased. The Economic Development Authority is currently discussing with the redeveloper the possible construction of a second upscale apartment building next door in 2012. Wooddale Pointe – Is 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 is expected to begin in the summer of 2011 and is scheduled for completion in the fall of 2012. The City also sponsors a comprehensive rehabilitation loan program available to single family and multi-family homeowners. The first programs were started in the mid 1970’s and have evolved into a comprehensive set of programs to ensure the preservation and enhancement of the City’s housing stock. Finally, the City of St. Louis Park is currently constructing two fire stations to replace the two existing fire stations. The City issued Build America Bonds in December 2010 and will also utilize some available cash to finance the construction. The fire stations will be completed in the first half of 2012. 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 nearly all 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. 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, 2009. This was the twenty-seventh 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. We would like to express our appreciation to all members of the department who assisted and contributed Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 14 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 15 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 16 9 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 17 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 18 SERVICES CHART Citizens City Council City Manager Boards & Commissions Board of Zoning Appeals Human Rights Planning Police Advisory Fire Civil Service Parks & Recreation Telecommunications Advisory 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 City of St. Louis Park Organizational Chart Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 19 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 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 20 II. FINANCIAL SECTION Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 21 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 22 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 23 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 24 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, 2010. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which starts on page 3 of this report. Financial Highlights • The assets of the City of St. Louis Park exceeded its liabilities at the close of the most recent fiscal year by $186,751,965 (net assets). Of this amount, $49,015,104 (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 $1,471,152. • As of the close of the current fiscal year, the City of St. Louis Park’s governmental funds reported combined ending fund balances of $72,643,732. Approximately 84 percent of this amount, $60,992,686 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 $10,399,401 (45 percent) of the total subsequent year General fund expenditures. • The City of St. Louis Park’s total bonded debt increased by $17,900,000 (66 percent) during the current fiscal year. The City retired the series 2001B Storm Water Revenue and 2003 G.O. Improvement Bonds. The City issued series 2010A Taxable G.O., series 2010B G.O. Utility Revenue, series 2010C G.O. Refunding and series 2010D G.O Taxable Build America Bonds. The series 2010A Taxable G.O. bonds are being repaid through assessments placed on individual properties within a Housing Improvement Area. Principal paid during the year was $5,935,000. 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 25 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 26 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 27 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 93 of this report. Other reports – Additional information related to the General fund start on page 133 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 $186,751,965 at the close of the most recent fiscal year. A portion of the City of St. Louis Park’s net assets (62 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. The City of St. Louis Park uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of St. Louis Park’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 28 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Net Assets Increase Increase 2010 2009 (Decrease) 2010 2009 (Decrease) Assets Current and other assets 91,381,536$ 77,241,117$ 14,140,419$ 9,383,547$ 7,702,056$ 1,681,491$ Capital assets 108,244,442 100,528,759 7,715,683 33,080,622 33,186,279 (105,657) Total assets 199,625,978 177,769,876 21,856,102 42,464,169 40,888,335 1,575,834 Liabilities Other liabilities 12,754,179 6,016,976 6,737,203 1,615,460 599,759 1,015,701 Noncurrent liabilities 30,271,672 21,915,175 8,356,497 10,696,871 9,407,331 1,289,540 Total liabilities 43,025,851 27,932,151 15,093,700 12,312,331 10,007,090 2,305,241 Net assets Invested in capital assets, net of related debt 94,326,512 89,252,994 5,073,518 21,717,923 23,977,469 (2,259,546) Restricted 21,692,426 20,075,976 1,616,450 - - - Unrestricted 40,581,189 40,508,755 72,434 8,433,915 6,903,776 1,530,139 Total net assets 156,600,127$ 149,837,725$ 6,762,402$ 30,151,838$ 30,881,245$ (729,407)$ Governmental Activities Business-type Activities The balance of unrestricted net assets ($49,015,104) 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 $6,762,402. This increase relates primarily to transfers from the enterprise funds. Business-Type activities – The net assets of business-type activities decreased by $729,407. This decrease is primarily due to transfers to the governmental funds. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 29 City of St. Louis Park Management’s Discussion and Analysis The following table indicates the changes in net assets for the City’s governmental and business-type activities: City of St. Louis Park’s Changes in Net Assets Increase Increase 2010 2009 (Decrease) 2010 2009 (Decrease) Revenues Program revenues Charges for services 7,122,879$ 9,287,231$ (2,164,352)$ 13,975,035$ 13,622,385$ 352,650$ Operating grants and contributions 1,735,926 2,664,563 (928,637) 103,342 167,604 (64,262) Capital grants and contributions 14,908,522 2,131,755 12,776,767 2,890 - 2,890 General revenues Property taxes 29,642,090 29,512,631 129,459 - - - Franchise fees 1,497,178 1,503,075 (5,897) - - - State grants and contributions not restricted to specific programs 151,624 153,108 (1,484) - - - Unrestricted investment earnings 629,094 1,452,176 (823,082) 88,991 201,825 (112,834) Gain on disposal of capital assets 34,453 91,149 (56,696) - - - Miscellaneous 950,231 11,229 939,002 - - - Total revenues 56,671,997 46,806,917 9,865,080 14,170,258 13,991,814 178,444 Expenses General government 7,192,652 8,167,355 (974,703) - - - Public safety 12,256,272 12,138,185 118,087 - - - Public works 19,446,758 6,915,541 12,531,217 - - - Public information 435,050 457,872 (22,822) - - - Culture and recreation 7,792,614 7,456,215 336,399 - - - Housing and rehabilitation 4,150,595 1,544,175 2,606,420 - - - Housing maintenance 241,345 128,099 113,246 - - - Social and economic development 4,861,518 6,321,623 (1,460,105) - - - General services - 7,662 (7,662) - - - Interest on long-term debt 1,453,555 1,543,879 (90,324) - - - Water utility - - - 3,904,801 4,089,837 (185,036) Sewer utility - - - 4,193,191 4,228,680 (35,489) Solid waste utility - - - 2,116,949 2,125,540 (8,591) Storm water utility - - - 1,325,803 1,287,202 38,601 Wireless - - - - 151,708 (151,708) Total expenses 57,830,359 44,680,606 13,149,753 11,540,744 11,882,967 (342,223) Increase (decrease) in net assets before transfers (1,158,362) 2,126,311 (3,284,673) 2,629,514 2,108,847 520,667 Transfers 3,358,921 5,202,312 (1,843,391) (3,358,921) (5,202,312) 1,843,391 Change in net assets 2,200,559 7,328,623 (5,128,064) (729,407) (3,093,465) 2,364,058 Net assets, January 1 149,837,725 142,509,102 7,328,623 30,881,245 33,974,710 (3,093,465) Prior period adjustment 4,561,843 - 4,561,843 - - - Net assets, January 1, as restated 154,399,568 142,509,102 11,890,466 30,881,245 33,974,710 (3,093,465) Net assets, December 31 156,600,127$ 149,837,725$ 6,762,402$ 30,151,838$ 30,881,245$ (729,407)$ Governmental Activities Business-type Activities Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 30 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 12.6% Operating grants and contributions 3.0% Capital grants and contributions 26.3% Property taxes 52.3%Franchise taxes 2.6% Grants and contributions unrestricted 0.3% Unrestricted investment earnings 1.1% Gain on disposal of capital assets 0.1% Miscellaneous 1.7% Expenses - The following chart illustrates the City’s expenses and program revenues for its governmental activities: Expenses and Program Revenues - Governmental Activities $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 GeneralgovernmentPublic safetyPublic worksPublicinformationCulture andrecreationHousing andrehabilitationHousingmaintenanceSocial andeconomicdevelopmentGeneralservicesInterest onlong-termdebtExpenses Program revenues Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 31 City of St. Louis Park Management’s Discussion and Analysis Business-type activities - Business-type activities net assets decreased in 2010. Below are the graphs showing the business-type activities revenue and expense comparisons. Revenue Sources - Business-type Activities Charges for services 98.6% Operating grants and contributions 0.8% Unrestricted investment earnings 0.6% Expense and Program Revenues - Business-type Activities $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 Water Sewer Solid waste Storm water Expenses Program revenues Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 32 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 $72,643,732, an increase of $11,678,628 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 $28,269,871 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 ($6,141,651), 2) to pay for capital improvements and future expenditures ($22,620,693), 3) for loans outstanding ($11,232,549), 4) for inventory ($253,727), 5) for land held for resale ($87,915), 6) for E-911 funds ($425,967) 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 $10,399,401 while total fund balance reached $11,030,535. 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 44.6 percent of the total subsequent year General fund expenditures, while total fund balance represents 47.4 percent of that same amount. The City’s General fund balance decreased $814,447 during the current fiscal year. This decrease is primarily due to transfers to other funds of $1,800,000. Expenditures were under budget by $775,623 due to conservative spending. Revenues exceeded budget by $256,520 due primarily to forfeited property revenue of $133,847 and conservative construction revenue projections. Parks and Recreation – the increase of $82,791 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 $324,067 in fund balance is due to increased special assessment revenues from housing improvement areas. Debt Service Fund - Fund balance in the debt service funds increased $3,934,289 primarily due to debt issuance at year end. Fire Stations Bonds Fund – This is a new fund for 2010, opened to account for the bonds issued for the construction of two new fire stations in December, 2010. Permanent Improvement Revolving Fund - The decrease in fund balance of $4,688,448 is due to transfers out to other funds for capital project funding. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 33 City of St. Louis Park Management’s Discussion and Analysis Street Capital Projects Fund – Fund balance increased by $2,540,200. Transfers in from the Permanent Improvement Revolving Fund to fund street projects were the main source of the increase. Development Fund - In 2010, the Development fund balance decreased by $638,263. 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 decrease in fund balance of $2,412,179 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 $8,581,891. Total net assets decreased by $581,431. This decrease was primarily a result of transfers to other funds in the amount of $3,364,855. 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, 2010, was $141,352,064 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City of St. Louis Park’s investment in capital assets for the current fiscal year was 5.7 percent. Major capital asset events during the current fiscal year included the following: • Completed expansion of the Municipal Service Center. • Planning phases on the construction of two fire stations. • Improvements to roadways and street lighting. • Improvements to water system. • Improvements to sewer system. • Improvements to park infrastructure and aesthetic aspects of the parks. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 34 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Capital Assets (net of accumulated depreciation) Increase Increase 2010 2009 (Decrease) 2010 2009 (Decrease) Land 14,383,395$ 13,130,128$ 1,253,267$ 174,844$ 174,844$ -$ Permanent easments 1,399,000 1,349,000 50,000 - - - Buildings 27,300,763 19,671,187 7,629,576 1,572,990 1,700,768 (127,778) Improvements other than buildings 10,491,688 9,938,199 553,489 22,652,789 22,926,521 (273,732) Machinery and equipment 3,709,417 3,446,832 262,585 6,616,776 5,690,979 925,797 Fleet 2,945,369 3,446,875 (501,506) - - - Infrastructure 45,523,404 39,904,808 5,618,596 1,991,573 2,626,810 (635,237) Construction in progress 2,491,406 9,641,730 (7,150,324) 71,650 66,357 5,293 Total 108,244,442$ 100,528,759$ 7,715,683$ 33,080,622$ 33,186,279$ (105,657)$ 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 65- 66 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 $45,080,000. Of this amount, $26,335,000 comprises debt issued for improvement and capital projects and will be repaid by ad valorem tax levies. In addition, $7,410,000 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 $11,335,000 of the City of St. Louis Park’s bonded debt represents general obligation revenue bonds to be repaid by the Water fund and Storm Water Utility fund user charges. Furthermore, the City has long-term debt of $3,589,216 for compensated absences and $1,049,961 for other post employment benefits payable. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 35 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Outstanding Debt General Obligation Bonds, Revenue Bonds, and other Debt Increase Increase 2010 2009 (Decrease) 2010 2009 (Decrease) G.O. Revenue Bonds -$ -$ -$ 11,335,000$ 9,185,000$ 2,150,000$ G.O. Tax Increment 7,410,000 8,405,000 (995,000) - - - G.O. Improvement 26,335,000 9,590,000 16,745,000 - - - Compensated absences 3,399,692 3,226,673 173,019 189,525 164,235 25,290 Other postemployment benefits 992,616 673,620 318,996 57,345 34,286 23,059 Total 38,137,308$ 21,895,293$ 16,242,015$ 11,581,870$ 9,383,521$ 2,198,349$ Governmental Activities Business-type Activities Principal payments during 2010 totaled $5,935,000. The City of St. Louis Park maintains an “AAA” rating from Standard & Poor’s for general obligation debt. State statues 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 $167,168,274 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 67 - 71 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 2011 and beyond. • The overall tax levy for 2011 was increased 4 percent. All of these factors were considered in preparing the City of St. Louis Park’s budget for the 2011 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 36 BASIC FINANCIAL STATEMENTS Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 37 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 38 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET ASSETS Statement 1 December 31, 2010 With Comparative Totals For December 31, 2009 Governmental Business-Type Activities Activities 2010 2009 Assets: Cash and investments $72,903,148 $6,085,118 $78,988,266 $64,242,857 Accrued interest receivable 225,485 24,053 249,538 365,495 Due from other governments 606,675 102 606,777 1,934,108 Accounts receivable 989,866 2,517,540 3,507,406 3,593,545 Taxes receivable 1,010,604 - 1,010,604 844,788 Prepaid items 258,228 298,059 556,287 326,472 Inventory 253,727 - 253,727 247,186 Deposits receivable 131,000 700 131,700 131,700 Internal balances 382,951 (382,951) - - Special assessments receivable 6,166,369 760,925 6,927,294 4,071,674 Loans receivable 7,974,731 - 7,974,731 8,985,606 Deferred charges 390,837 80,001 470,838 199,742 Land held for resale 87,915 - 87,915 - Capital assets (net of accumulated depreciation): Nondepreciable 18,273,801 246,494 18,520,295 24,362,059 Depreciable 89,970,641 32,834,128 122,804,769 109,352,979 Total assets 199,625,978 42,464,169 242,090,147 218,658,211 Liabilities: Accounts payable 1,069,539 350,030 1,419,569 1,387,230 Salaries payable 921,607 57,555 979,162 883,602 Due to other governments 76,123 39,533 115,656 308,609 Contracts payable 1,443,654 73,843 1,517,497 1,636,473 Accrued interest payable 369,171 181,802 550,973 440,119 Deposits payable 553,058 - 553,058 1,617,387 Unearned revenue 441,243 - 441,243 343,315 Compensated absences payable: Due within one year 2,379,784 132,667 2,512,451 2,373,636 Due in more than one year 1,019,908 56,857 1,076,765 1,017,272 Bonds payable: Due within one year 5,420,000 780,000 6,200,000 2,070,000 Due in more than one year 28,339,148 10,582,699 38,921,847 25,153,692 Other postemployment benefits: Due in more than one year 992,616 57,345 1,049,961 707,906 Total liabilities 43,025,851 12,312,331 55,338,182 37,939,241 Net assets: Invested in capital assets, net of related debt 94,326,512 21,717,923 116,044,435 113,230,463 Restricted 21,692,426 - 21,692,426 20,075,976 Unrestricted 40,581,189 8,433,915 49,015,104 47,412,531 Total net assets $156,600,127 $30,151,838 $186,751,965 $180,718,970 Primary Government Totals The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 39 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2010 With Comparative Totals For The Year Ended December 31, 2009 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $7,192,652 $1,065,209 Public safety 12,256,272 2,898,634 Public works 19,446,758 601,890 Public information 435,050 - Culture and recreation 7,792,614 1,959,556 Housing and rehabilitation 4,150,595 8,833 Housing maintenance 241,345 - Social and economic development 4,861,518 588,757 Interest on long-term debt 1,453,555 - Total governmental activities 57,830,359 7,122,879 Business-type activities: Water 3,904,801 4,148,394 Sewer 4,193,191 5,277,473 Solid waste 2,116,949 2,719,376 Storm water 1,325,803 1,829,792 Wireless - - Total business-type activities 11,540,744 13,975,035 Total primary government $69,371,103 $21,097,914 The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 40 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Contributions Contributions Activities Activities 2010 2009 $223,493 $34,500 ($5,869,450) $ - ($5,869,450) ($7,261,007) 632,790 121,141 (8,603,707) - (8,603,707) (8,044,732) 479,310 10,280,849 (8,084,709) - (8,084,709) (2,452,875) - - (435,050) - (435,050)(456,113) 134,333 138 (5,698,587) - (5,698,587) (5,017,765) - 4,052,101 (89,661) - (89,661)(729,800) - 64,051 (177,294) - (177,294)107,563 266,000 355,742 (3,651,019) - (3,651,019) (5,516,583) - - (1,453,555) - (1,453,555) (1,225,745) 1,735,926 14,908,522 (34,063,032)0 (34,063,032) (30,597,057) 23,918,951 - - - 243,593 243,593 205,125 - - - 1,084,282 1,084,282 924,491 103,342 - - 705,769 705,769 433,475 - 2,890 - 506,879 506,879 479,499 - - - - - (135,568) 103,342 2,890 0 2,540,523 2,540,523 1,907,022 $1,839,268 $14,911,412 (34,063,032) 2,540,523 (31,522,509) (28,690,035) General revenues: Taxes: Property taxes 22,992,527 - 22,992,527 21,659,011 Tax increment 6,649,563 - 6,649,563 7,853,620 Franchise taxes 1,497,178 - 1,497,178 1,503,075 Grants and contributions not restricted to specific programs 151,624 - 151,624 153,108 Unrestricted investment earnings 629,094 88,991 718,085 1,654,001 Gain on disposal of capital assets 34,453 - 34,453 91,149 Miscellaneous 950,231 - 950,231 11,229 Transfers 3,358,921 (3,358,921) - - Total general revenues 36,263,591 (3,269,930) 32,993,661 32,925,193 Change in net assets 2,200,559 (729,407) 1,471,152 4,235,158 Net assets - January 1, as previously stated 149,837,725 30,881,245 180,718,970 176,483,812 Prior period adjustment 4,561,843 - 4,561,843 - Net assets - January 1, as restated 154,399,568 30,881,245 185,280,813 176,483,812 Net assets - December 31 $156,600,127 $30,151,838 $186,751,965 $180,718,970 Totals Net (Expense) Revenue and Changes in Net Assets Primary Government Program Revenues The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 41 CITY OF ST. LOUIS PARK, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2010 With Comparative Totals For December 31, 2009 General Fund Parks and Recreation Housing Rehabilitation Debt Service Funds 4040 Fire Station Bonds Assets Cash and investments $12,437,785 $839,648 $146,626 $6,138,467 $12,210,989 Accrued interest receivable 38,721 - 2,019 5,184 14,113 Due from other governments 140,618 2,045 - - - Accounts receivable 19,353 290,479 - - - Taxes receivable - unremitted 461,086 - - - - Taxes receivable - delinquent 469,313 - - - - Prepaid items 66,945 10,000 - - - Inventory 13,719 240,008 - - - Deposits receivable - - - - - Due from other funds - - - - - Special assessments receivable - delinquent - - 11,530 - - Special assessments receivable - deferred - - 4,850,851 - - Interfund loan receivable - - - - - Loans receivable - current - - - - - Loans receivable - noncurrent - - 2,725,902 1,770,000 - Land held for resale - - 87,915 - - Total assets $13,647,540 $1,382,180 $7,824,843 $7,913,651 $12,225,102 Liabilities and Fund Balances Liabilities: Accounts payable $423,519 $208,834 $109,384 $2,000 $7,855 Salaries payable 733,303 130,511 4,185 - - Special Revenue Funds The accompanying notes are an integral part of these financial statements. py Due to other governments 34,150 3,951 - - - Contracts payable 45,046 2,917 16,020 - 223,869 Due to other funds - - - - - Interfund loan payable - - 1,742,418 - - Deposits payable 553,058 - - - - Deferred revenue 827,929 82,627 4,860,238 1,770,000 - Total liabilities 2,617,005 428,840 6,732,245 1,772,000 231,724 Fund balance: Nonspendable 80,664 250,008 2,813,817 - - Restricted 425,967 - - 6,141,651 11,986,027 Committed - - - - - Assigned 124,503 703,332 - - 7,351 Unassigned 10,399,401 - (1,721,219) - - Total fund balance 11,030,535 953,340 1,092,598 6,141,651 11,993,378 Total liabilities and fund balance $13,647,540 $1,382,180 $7,824,843 $7,913,651 $12,225,102 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 42 Statement 3 Permanent Improvement Revolving Streets Capital Projects Development EDA Redevelopment District Other Governmental Funds 2010 2009 $1,526,505 $ - $16,033,984 $7,949,908 $10,330,694 $67,614,606 $56,126,029 24,930 - 70,327 28,521 34,883 218,698 305,783 6,500 216,627 - - 92,227 458,017 1,773,056 - 300,861 - - 379,173 989,866 1,048,317 - - - 59,548 - 520,634 341,855 - - - 20,657 - 489,970 502,933 - - - - - 76,945 - - - - - - 253,727 247,186 - - 100,000 - - 100,000 100,000 2,284,633 - - - - 2,284,633 7,289,353 19,375 - 6,061 - 12,222 49,188 21,133 970,266 - 128,811 - 167,253 6,117,181 3,353,946 234,975 - 5,442,543 - - 5,677,518 2,107,679 - - 6,784 - - 6,784 106,447 - - 2,424,386 643,006 404,653 7,967,947 8,879,159 - - - - - 87,915 - $5,067,184 $517,488 $24,212,896 $8,701,640 $11,421,105 $92,913,629 $82,202,876 $ - $1,467 $83,332 $26,150 $124,135 $986,676 $910,420 - - - - 13,757 881,756 793,528 Total Governmental Funds Capital Projects Funds The accompanying notes are an integral part of these financial statements. - 813 2,853 25,361 324 67,452 199,727 - 727,515 - - 176,371 1,191,738 750,488 - 2,217,974 - - 66,659 2,284,633 6,783,877 - - - 3,700,125 - 5,442,543 2,107,679 - - - - - 553,058 1,617,387 986,985 - 134,152 20,657 179,453 8,862,041 8,074,666 986,985 2,947,769 220,337 3,772,293 560,699 20,269,897 21,237,772 234,975 - 7,866,929 - 404,653 11,651,046 7,641,149 - - - 8,637,400 5,531,770 32,722,815 16,492,506 - - - - 466,792 466,792 427,434 3,845,224 - 16,125,630 - 4,469,872 25,275,912 33,330,990 - (2,430,281) - (3,708,053) (12,681) 2,527,167 3,073,025 4,080,199 (2,430,281) 23,992,559 4,929,347 10,860,406 72,643,732 60,965,104 $5,067,184 $517,488 $24,212,896 $8,701,640 $11,421,105 $92,913,629 $82,202,876 $72,643,732 $60,965,104 92,993,461 88,964,963 8,420,798 7,731,351 390,837 146,703 (33,759,148) (18,014,882) (369,171) (286,530) 16,279,618 10,331,016 $156,600,127 $149,837,725 The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 43 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2010 With Comparative Totals For The Year Ended December 31, 2009 General Fund Parks and Recreation Housing Rehabilitation Debt Service Funds 4040 Fire Station Bonds Revenues: Property taxes $15,061,267 $4,014,872 $ - $1,358,700 $ - Tax increments - - - - - Franchise taxes - - - - - License and permits 2,359,094 622 - - - Intergovernmental 1,578,945 89,631 - - - Charges for services 1,243,976 1,947,040 8,833 - - Fines and forfeits 401,554 56 - - - Special assessments - - 1,096,636 - - Interest on investments 105,927 1,349 19,313 4,176 7,601 Miscellaneous 40,285 48,366 610,708 2,083,506 - Total revenues 20,791,048 6,101,936 1,735,490 3,446,382 7,601 Expenditures: Current: General government 6,219,751 - - - - Public safety 11,690,398 - - - 10,497 Public works 4,246,231 - - - - Public information - - - - - Culture and recreation - 6,063,029 - - - Housing and rehabilitation - - 4,144,378 - - Housing maintenance - - - - - Social economic development - - - - - Capital outlay: General government 222,381 - - - - Public safety 14,969 - - - 503,539 Special Revenue Funds The accompanying notes are an integral part of these financial statements. Public safety 14,969 503,539 Public works - - - - - Public information - - - - - Housing and rehabilitation - - 56,259 - - Culture and recreation - - - - - Social and economic development - - - - - Debt service: Principal - - - 2,170,000 - Interest and other - - 93,453 1,076,833 - Bond issuance costs - - 56,590 259,389 137,309 Total expenditures 22,393,730 6,063,029 4,350,680 3,506,222 651,345 Revenues over (under) expenditures (1,602,682)38,907 (2,615,190) (59,840) (643,744) Other financing sources (uses): Transfers in 2,588,235 42,384 - 1,751,750 - Transfers out (1,800,000) - (185,255) (204,041) - Bond premium - - - 2,792 - Bonds issued - - 3,105,000 387,628 12,637,372 Refunding bonds issued - - - 3,615,000 - Redemption of refunded bonds - - - (1,825,000) - Refunding TIF notes issued - - - 4,430,000 - Redemption of TIF notes - - - (4,164,000) - Payments to refunded bond escrow agent - - - - - Proceeds from sale of capital assets - 1,500 19,512 - - Total other financing sources (uses)788,235 43,884 2,939,257 3,994,129 12,637,372 Net change in fund balance (814,447)82,791 324,067 3,934,289 11,993,628 Fund balance - January 1, as previously stated 11,844,982 870,549 820,005 2,198,070 (250) Prior period adjustment - - (51,474)9,292 - Fund balance - January 1, as restated 11,844,982 870,549 768,531 2,207,362 (250) Fund balance - December 31 $11,030,535 $953,340 $1,092,598 $6,141,651 $11,993,378 The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 44 Statement 4 Permanent Improvement Revolving Streets Capital Projects Development EDA Redevelopment District Other Governmental Funds 2010 2009 $ - $ - $3,568 $1,003,783 $1,225,000 $22,667,190 $22,689,736 - - - 6,649,563 - 6,649,563 6,856,797 - - - - 1,497,178 1,497,178 1,503,075 - - - - - 2,359,716 2,786,032 - 9,821,513 585 103,111 285,816 11,879,601 3,867,795 - 251,527 581,385 - 19,210 4,051,971 5,449,868 - - - - - 401,610 332,694 232,060 - 65,937 - 155,477 1,550,110 800,054 84,915 - 198,697 86,479 103,641 612,098 1,358,170 10,656 7,197 230,059 - 19,454 3,050,231 1,393,373 327,631 10,080,237 1,080,231 7,842,936 3,305,776 54,719,268 47,037,594 - - - - - 6,219,751 6,479,684 68,847 - - - 1,504 11,771,246 11,949,612 - 11,134,194 - - 244,069 15,624,494 4,637,289 - - - - 387,459 387,459 445,146 - - - - 171,909 6,234,938 6,027,059 - - - - - 4,144,378 1,550,264 - - - - 241,170 241,170 128,099 - - 837,569 3,643,807 239,262 4,720,638 6,241,123 - - - - - 222,381 - 575 - - - - 519,083 1,294 Total Governmental Funds Capital Projects Funds The accompanying notes are an integral part of these financial statements. 575 519,083 1,294 - 2,859,756 - - 1,095,389 3,955,145 7,568,969 - - - - 92,086 92,086 295,924 - - - - - 56,259 - - - - - 990,548 990,548 1,475,450 - - 470,581 - - 470,581 972,365 - - - - - 2,170,000 8,819,000 - - - - - 1,170,286 1,322,477 - - - - - 453,288 - 69,422 13,993,950 1,308,150 3,643,807 3,463,396 59,443,731 57,913,755 258,209 (3,913,713)(227,919)4,199,129 (157,620) (4,724,463) (10,876,161) - 6,453,913 - 415,844 557,227 11,809,353 9,939,299 (4,946,657) - (410,344)(7,027,152)(400,942) (14,974,391) (10,579,081) - - - - - 2,792 10,202 - - - - - 16,130,000 2,000,000 - - - - - 3,615,000 - - - - - - (1,825,000) - - - - - - 4,430,000 - - - - - - (4,164,000) - - - - - - - (2,134,425) - - - - 6,400 27,412 - (4,946,657)6,453,913 (410,344)(6,611,308)162,685 15,051,166 (764,005) (4,688,448)2,540,200 (638,263)(2,412,179)5,065 10,326,703 (11,640,166) 8,768,647 (4,970,481) 24,579,348 6,398,168 10,456,066 60,965,104 72,605,270 - - 51,474 943,358 399,275 1,351,925 - 8,768,647 (4,970,481) 24,630,822 7,341,526 10,855,341 62,317,029 72,605,270 $4,080,199 ($2,430,281) $23,992,559 $4,929,347 $10,860,406 $72,643,732 $60,965,104 The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 45 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 46 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, 2010 With Comparative Amounts For The Year Ended December 31, 2009 2010 2009 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)$10,326,703 ($11,640,166) 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 (4,481,214) (3,878,252) Capital outlays 6,306,083 10,213,903 Disposal of capital assets (1,006,289) (153,062) 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) (2,000,000) Premium on bonds issued (2,792) (10,202) Principal repayments on bonds 3,995,000 10,715,000 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.(82,641) 101,340 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.252,660 10,683 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 2,802,410 (33,902) Property taxes (12,963) (381,929) Loans (2,100,000) (95,000) 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. 5,948,602 4,480,210 Change in net assets of governmental activities (Statement 2) $2,200,559 $7,328,623 The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 47 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2010 With Comparative Amounts For December 31, 2009 2010 2009 2010 2009 Assets: Current assets: Cash and investments $74,202 $350 $2,142,599 $1,851,591 Accrued interest receivable 1,016 8,865 6,997 11,629 Due from other governments 102 - - - Accounts receivable 762,478 850,686 870,045 846,198 Prepaid items 298,059 - - - Deposits receivable 700 700 - - Interfund loan receivable - - 390,582 371,983 Special assessments receivable - delinquent 83,336 65,118 57 65 Special assessments receivable - deferred 595,293 598,950 82,226 32,389 Total current assets 1,815,186 1,524,669 3,492,506 3,113,855 Noncurrent assets: Deferred charges 50,427 44,721 - - 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 764,467 754,398 22,278 22,278 Infrastructure 14,037,191 14,036,235 18,711,412 18,594,322 Machinery, furniture and equipment 4,404,767 3,384,367 170,967 141,424 Fleet - - - - Construction in progress - 45,817 62,136 20,540 Total capital assets, at cost 24,082,881 23,097,273 19,032,904 18,844,675 Less: accumulated depreciation (10,342,441) (9,735,201) (15,354,601) (15,233,525) Net capital assets 13,740,440 13,362,072 3,678,303 3,611,150 Total noncurrent assets 13,790,867 13,406,793 3,678,303 3,611,150 Total assets 15,606,053 14,931,462 7,170,809 6,725,005 Liabilities: Current liabilities: Accounts payable 172,342 59,315 20,822 14,803 Salaries payable 39,514 40,970 8,242 6,359 Accrued flex spending - - - - Due to other governments 5,065 31,305 - 2,617 Contracts payable 15,103 46,819 32,475 6,345 Accrued interest payable 121,328 100,599 - - Interfund loan payable 810,582 771,983 - - Compensated absences payable 107,915 94,905 18,415 15,693 Bonds payable 462,300 120,000 - - Total current liabilities 1,734,149 1,265,896 79,954 45,817 Noncurrent liabilities: Compensated absences payable 46,249 40,673 7,891 6,725 Other postemployment benefits payable 43,677 28,304 8,523 4,680 Bonds payable 7,020,123 6,209,719 - - Total noncurrent liabilities 7,110,049 6,278,696 16,414 11,405 Total liabilities 8,844,198 7,544,592 96,368 57,222 Net assets: Invested in capital assets, net of related debt 6,258,017 7,032,353 3,678,303 3,611,150 Unrestricted 503,838 354,517 3,396,138 3,056,633 Total net assets $6,761,855 $7,386,870 $7,074,441 $6,667,783 5000 Water Utility 5100 Sewer Utility Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 48 Statement 6 Business-Type Activities Enterprise Funds Governmental Activities 2010 2009 2010 2009 Internal 2010 2009 Service Funds $1,408,672 $1,999,051 $2,459,645 $758,716 $6,085,118 $4,609,708 $5,288,542 7,277 12,554 8,763 4,820 24,053 37,868 6,787 - - - 67,144 102 67,144 148,658 595,814 569,646 289,203 278,698 2,517,540 2,545,228 - - - - - 298,059 - 181,283 - - - - 700 700 31,000 420,000 400,000 - - 810,582 771,983 - 13 - - - 83,406 65,183 - - 73 - - 677,519 631,412 - 2,431,776 2,981,324 2,757,611 1,109,378 10,497,079 8,729,226 5,656,270 - - 29,574 8,318 80,001 53,039 - - - - - 174,844 174,844 818,094 - - - - 4,767,723 4,767,723 - - - 6,182,215 6,182,215 6,968,960 6,958,891 - - - 14,942,261 14,942,261 47,690,864 47,572,818 8,691,805 - - 89,099 89,099 4,664,833 3,614,890 5,551,929 - - - - - - 6,331,798 - - 9,514 - 71,650 66,357 - 0 0 21,223,089 21,213,575 64,338,874 63,155,523 21,393,626 - - (5,561,210) (5,000,518) (31,258,252) (29,969,244) (6,142,645) 0 0 15,661,879 16,213,057 33,080,622 33,186,279 15,250,981 0 0 15,691,453 16,221,375 33,160,623 33,239,318 15,250,981 2,431,776 2,981,324 18,449,064 17,330,753 43,657,702 41,968,544 20,907,251 149,129 144,191 7,737 37,678 350,030 255,987 82,863 629 648 9,170 4,430 57,555 52,407 11,789 - - - - - - 28,062 34,468 45,359 - 2,140 39,533 81,421 8,671 - - 26,265 3,191 73,843 56,355 251,916 - - 60,474 52,990 181,802 153,589 - - - 234,975 308,226 1,045,557 1,080,209 - - - 6,337 4,367 132,667 114,965 2,379,784 - - 317,700 280,000 780,000 400,000 - 184,226 190,198 662,658 693,022 2,660,987 2,194,933 2,763,085 - - 2,717 1,872 56,857 49,270 1,019,908 - - 5,145 1,302 57,345 34,286 992,616 - - 3,562,576 2,599,091 10,582,699 8,808,810 - 0 0 3,570,438 2,602,265 10,696,901 8,892,366 2,012,524 184,226 190,198 4,233,096 3,295,287 13,357,888 11,087,299 4,775,609 - - 11,781,603 13,333,966 21,717,923 23,977,469 15,250,981 2,247,550 2,791,126 2,434,365 701,500 8,581,891 6,903,776 880,661 $2,247,550 $2,791,126 $14,215,968 $14,035,466 30,299,814 $30,881,245 $16,131,642 Adjustment to reflect consolidation of Internal Service fund activities (147,976) Net assets of business-type activities $30,151,838 Totals 5200 Solid Waste 5300 Storm Water Utility The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 49 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended December 31, 2010 With Comparative Totals For The Year Ended December 31, 2009 2010 2009 2010 2009 2010 2009 Operating revenues: Charges for services $3,673,167 $3,880,788 $5,221,046 $5,068,695 $2,586,113 $2,424,570 Other 203,495 211,040 56,427 84,476 133,263 34,058 Rent 271,732 203,134 - - - - Total operating revenues 4,148,394 4,294,962 5,277,473 5,153,171 2,719,376 2,458,628 Operating expenses: Personal services 945,805 1,023,886 305,450 227,821 56,262 51,175 Supplies 449,501 451,216 19,532 77,478 25,378 39,500 Professional services 321,005 285,674 49,014 26,012 3,337 10,231 Insurance 37,419 29,958 45,614 40,274 12,673 8,554 Utilities 405,304 455,739 42,954 48,534 - - Repairs and maintenance 289,209 542,372 90,970 113,450 - - Depreciation 607,240 487,869 121,075 122,734 - - Disposal charges 1,230 79,877 3,340,516 3,443,345 1,982,084 1,981,105 Other 392,471 490,645 120,947 129,032 35,527 34,975 Total operating expenses 3,449,184 3,847,236 4,136,072 4,228,680 2,115,261 2,125,540 Operating income (loss)699,210 447,726 1,141,401 924,491 604,115 333,088 Nonoperating revenues (expenses): Investment income - 75,168 31,877 46,765 37,067 51,667 Property taxes - - - - - - Intergovernmental revenue - - - - 103,342 100,387 Miscellaneous expense (82,038) - (2,376) - - - Net gain on disposal of assets - - - - - - Interest expense (304,101) (242,601) - - - - Total nonoperating revenues (expenses)(386,139) (167,433) 29,501 46,765 140,409 152,054 Income (loss) before transfers 313,071 280,293 1,170,902 971,256 744,524 485,142 Transfers in 5,934 - - - - - Transfers out (944,020) (4,568,147) (764,244) (764,244) (1,288,100) (288,100) Total transfers (938,086) (4,568,147) (764,244) (764,244) (1,288,100) (288,100) Change in net assets (625,015) (4,287,854) 406,658 207,012 (543,576) 197,042 Net assets - January 1 7,386,870 11,674,724 6,667,783 6,460,771 2,791,126 2,594,084 Net assets - December 31 $6,761,855 $7,386,870 $7,074,441 $6,667,783 $2,247,550 $2,791,126 5000 Water Utility 5100 Sewer Utility 5200 Solid Waste Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 50 Statement 7 Governmental Activities Internal 2010 2009 2010 2009 2010 2009 Service Funds $1,829,792 $1,699,557 $ - $140 $13,310,118 $13,073,750 $626,983 - - - 16,000 393,185 345,574 $117,498 - - - - 271,732 203,134 - 1,829,792 1,699,557 0 16,140 13,975,035 13,622,458 744,481 241,947 196,411 - 9,737 1,549,464 1,509,030 630,792 4,143 8,874 - 245 498,554 577,313 153,546 49,515 186,209 - 128,161 422,871 636,287 157,351 8,227 3,621 - 1,583 103,933 83,990 81,971 19,012 16,500 - - 467,270 520,773 - 116,782 141,605 - - 496,961 797,427 - 560,692 503,229 - - 1,289,007 1,113,832 1,087,929 - - - - 5,323,830 5,504,327 - 161,452 87,318 - 11,982 710,397 753,952 345,607 1,161,770 1,143,767 0 151,708 10,862,287 11,496,931 2,457,196 668,022 555,790 0 (135,568)3,112,748 2,125,527 (1,712,715) 20,047 10,951 - 17,274 88,991 201,825 16,996 - - - - - - 338,300 2,890 67,144 - - 106,232 167,531 607,533 (13,349) - - - (97,763) - - - - - - - - 26,553 (128,617)(143,435) - - (432,718)(386,036) - (119,029)(65,340)0 17,274 (335,258)(16,680)989,382 548,993 490,450 0 (118,294)2,777,490 2,108,847 (723,333) - - - 786,670 5,934 786,670 6,554,987 (368,491)(368,491) - - (3,364,855) (5,988,982)(31,028) (368,491)(368,491)0 786,670 (3,358,921) (5,202,312)6,523,959 180,502 121,959 0 668,376 (581,431) (3,093,465)5,800,626 14,035,466 13,913,507 - (668,376) 30,881,245 33,974,710 10,331,016 $14,215,968 $14,035,466 $0 $0 $30,299,814 $30,881,245 $16,131,642 Changes in net assets per above ($581,431) Adjustment to reflect consolidation of Internal Service Fund activities (147,976) Change in net assets of business-type activities ($729,407) Business-Type Activities Enterprise Funds Totals5300 Storm Water Utility 5400 Wireless The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 51 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2010 With Comparative Totals For The Year Ended December 31, 2009 2010 2009 2010 2009 2010 2009 Cash flows from operating activities: Receipts from customers and users $4,018,444 $3,849,644 $5,128,771 $5,075,183 $2,540,005 $2,408,970 Receipts from interfund services provided - - - - - - Other receipts 203,495 76,649 56,427 562 133,263 245 Payments for interfund services used - (29,010) - (29,000) - - Payments to suppliers (2,139,127) (2,428,241) (3,680,015) (3,842,252) (2,064,952) (2,071,082) Payments to employees (913,302) (997,334) (295,836) (224,754) (56,281) (51,169) Miscellaneous expense (82,038) - (2,376) - - - Net cash flows provided by (used in) operating activities 1,087,472 471,708 1,206,971 979,739 552,035 286,964 Cash flows from noncapital financing activities: Transfers in 5,934 - - - - - Transfers out (944,020) (4,568,147) (764,244) (764,244) (1,288,100) (288,100) Borrowing (payments) on interfund balances 38,599 771,983 - (371,983) - (400,000) Intergovernmental receipts - 24,453 - - 103,342 102,650 Intergovernmental payments - - - (253) - - Net cash flows provided by (used in) noncapital financing activities (899,487) (3,771,711) (764,244) (1,136,480) (1,184,758) (585,450) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (985,608) (1,114,189) (188,229) (123,261) - - Business-Type Activities Enterprise Funds 5000 Water Utility 5100 Sewer Utility 5200 Solid Waste The accompanying notes are an integral part of these financial statements. qp(,)(,,)(,)(,) Proceeds from sale of assets - - - - - - Proceeds from bonds issued (net) 1,266,998 - - - - Principal paid on bonds (120,000) (115,000) - - - Interest paid on debt (283,372) (191,135) - - - Net cash flows provided by (used in) capital and related financing activities (121,982) (1,420,324) (188,229) (123,261) 0 0 Cash flows from investing activities: Investment income 7,849 80,322 36,510 48,526 42,344 53,156 Net increase (decrease) in cash and cash equivalents 73,852 (4,640,005) 291,008 (231,476) (590,379) (245,330) Cash and cash equivalents - January 1 350 4,640,355 1,851,591 2,083,067 1,999,051 2,244,381 Cash and cash equivalents - December 31 $74,202 $350 $2,142,599 $1,851,591 $1,408,672 $1,999,051 The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 52 Statement 8 Page 1 of 2 Governmental Activities Internal 2010 2009 2010 2009 2010 2009 Service Funds $1,886,431 $1,662,773 $ - $3,670 $13,573,651 $13,000,240 $ - - - - - - - 572,233 - - - 16,000 393,185 93,456 117,498 - (10,000) - - - (68,010) - (368,138) (456,997) - (169,902) (8,252,232) (8,968,474) (1,327,750) (230,549) (197,219) - (9,737) (1,495,968) (1,480,213) (136,593) (13,349) - - (97,763) - - 1,274,395 998,557 0 (159,969) 4,120,873 2,576,999 (774,612) - - - 786,670 5,934 786,670 6,554,987 (368,491) (368,491) - - (3,364,855) (5,988,982) (31,028) (73,251) (76,649) - (1,425,197) (34,652) (1,501,846) (197,250) 2,890 100,154 - - 106,232 227,257 945,833 - - - (215) - (468) - (438,852) (344,986) 0 (638,742) (3,287,341) (6,477,369) 7,272,542 (9,514) (21,326) - - (1,183,351) (1,258,776) (4,776,745) Business-Type Activities Enterprise Funds 5300 Storm Water Utility 5400 Wireless Totals The accompanying notes are an integral part of these financial statements. (, )(, )(,,)(,,)(,,) - - - - - - 28,184 2,799,929 - - - 4,066,927 - - (1,820,000) (270,000) - - (1,940,000) (385,000) - (121,133) (147,846) - - (404,505) (338,981) - 849,282 (439,172)0 0 539,071 (1,982,757) (4,748,561) 16,104 15,258 - 17,274 102,807 214,536 32,053 1,700,929 229,657 0 (781,437) 1,475,410 (5,668,591) 1,781,422 758,716 529,059 - 781,437 4,609,708 10,278,299 3,507,120 $2,459,645 $758,716 $0 $0 $6,085,118 $4,609,708 $5,288,542 The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 53 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2010 With Comparative Totals For The Year Ended December 31, 2009 2010 2009 2010 2009 2010 2009 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $699,210 $447,726 $1,141,401 $924,491 $604,115 $333,088 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous expense (82,038) - (2,376) - - - Depreciation 607,240 487,869 121,075 122,734 - - Changes in assets and liabilities: Decrease (increase) in: Accounts receivable 88,106 (239,110) (42,446) (68,548) (46,168) (49,340) Special assessments (14,561) (129,559) (49,829) (8,878) 60 (73) Prepaid items (298,059) 12,064 - - - Increase (decrease) in: Accounts payable 86,787 (137,122) 3,402 3,158 (5,953) 3,283 Contracts payable (31,716) 3,288 26,130 3,715 - - Accrued salaries payable (1,456) 10,658 1,883 1,770 (19) 6 Accrued flex spending - - - - - Compensated absences payable 18,586 2,422 3,888 (797) - - Other postemployment benefits 15,373 13,472 3,843 2,094 - - Total adjustments 388,262 23,982 65,570 55,248 (52,080)(46,124) Business-Type Activities Enterprise Funds 5000 Water Utility 5100 Sewer Utility 5200 Solid Waste The accompanying notes are an integral part of these financial statements. Total adjustments 388,262 23,982 65,570 55,248 (52,080)(46,124) Net cash provided by operating activities $1,087,472 $471,708 $1,206,971 $979,739 $552,035 $286,964 Supplemental schedule of noncash capital and related financing activities Amortization of bond premiums and issuance costs $2,610 $2,176 $ - $ - $ - $ - Disposal of capital assets $45,817 $ - $ - $19,530 $ - $ - The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 54 Statement 8 Page 2 of 2 Governmental Activities Internal 2010 2009 2010 2009 2010 2009 Service Funds $668,022 $555,790 $ - ($135,568) $3,112,748 $2,125,527 ($1,712,715) (13,349) - - - (97,763) - - 560,692 503,229 - - 1,289,007 1,113,832 1,087,929 56,639 (36,784) - 3,530 56,131 (390,252) (54,750) - - - - (64,330) (138,510) - - - - - (298,059) 12,064 145,189 (32,081) 4,056 - (27,931) 52,155 (154,556) (156,750) 23,074 (26,926) - - 17,488 (19,923) (577,714) 4,740 (1,122) - - 5,148 11,312 8,484 - - - - - - (6,300) 2,815 (264) - - 25,289 1,361 173,019 3,843 578 - - 23,059 16,144 318,996 606,373 442,767 0 (24,401)1,008,125 451,472 938,103 Business-Type Activities Enterprise Funds 5300 Storm Water Utility 5400 Wireless Totals The accompanying notes are an integral part of these financial statements. 606,373 442,767 0 (24,401)1,008,125 451,472 938,103 $1,274,395 $998,557 $0 ($159,969) $4,120,873 $2,576,999 ($774,612) $1,302 $307 $ - $ - $3,912 $2,483 $ - $ - $ - $ - $ - $45,817 $19,530 $ - The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 55 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 56 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 57 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 58 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 59 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 60 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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 2010, the budget was amended. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 61 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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. 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 62 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 63 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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 2010 and 2009 totaled $2,304,347 and $1,975,069, respectively. Receipt of property taxes from this “fiscal disparities pool” does not increase or decrease total tax revenue. J. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 64 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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. 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, 2010, no interest was capitalized in connection with construction in progress. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 65 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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. 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 66 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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. 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 67 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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, 2009, 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. 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; Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 68 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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, 2010, the bank balance of the City’s deposits was $1,436,219, all of which was covered by federal depository insurance or by collateral pledged and held in the City’s name. B. INVESTMENTS Minnesota Statutes authorize the City to invest in the following: 1. Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities, or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above, general obligation tax-exempt securities, or repurchase or reverse repurchase agreements. 3. Obligations of the State of Minnesota or any of its municipalities 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 69 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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. At December 31, 2010, 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 $8,645,287 $8,645,287 $ - $ - $ - Money market mutual funds NR 34,845,047 34,845,047 - - - Government National Mortgage Association NR 40,167 - - - 40,167 Municipal bonds (1) 14,411,996 - 14,411,996 - - Federal Home Loan Bank notes Aaa 3,960,307 - 2,999,557 960,750 - Federal Home Loan Mortgage Corp. notes Aaa 3,008,880 - 3,008,880 - - Federal Farm Credit Bank notes Aaa 940,023 - 940,023 - - Federal National Mortgage Assn. notes Aaa 8,831,787 2,017,940 6,813,847 - - Other Governmental Securities NR 3,030,530 3,030,530 - - - Total $77,714,024 $48,538,804 $28,174,303 $960,750 $40,167 (1) $1,650,840 are rated Aaa, $755,762 are rated Aa1, $2,740,998 are Total investments $77,714,024 rated Aa2, $3,104,820 are rated Aa3 and $6,159,576 are rated A1. Deposits 1,270,110 Petty cash 4,132 NR - Not Rated Total cash and investments $78,988,266 Classifications above are by maturity date. Some investments listed above have call dates that occur in less than one year. 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 70 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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 investment policy does not place further restrictions on investment options. The City’s external investment pool investment is with the 4M fund which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated 2a7-like pool and the fair value of the position in the pool is the same as the value of pool shares. Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government’s investment in a single issuer. The City’s investment policy states no more than 50% of its investment portfolio can be invested in municipal bonds or MHFA securities. Investments in a single issuer exceeding 5% of the City’s overall cash and investment portfolio are in various holdings as follows: Federal Home Loan Bank 5.0% Federal National Mortgage Association 11.2% 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, 2010, 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, 2010, the loans receivable balance was $7,974,731. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 71 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 Significant receivable balances not expected to be collected within one year of December 31, 2010 are as follows: Special Interfund Loans Assessments Property Loans Receivable Receivable Taxes Receivable Total Major Funds: General Fund $ - $ - $291,609 $ - $291,609 Housing Rehabilitation Fund 2,725,902 4,691,638 - - 7,417,540 Debt Service Fund 1,770,000 - - - 1,770,000 Permanent Improvement Revolving Fund - 840,529 - 159,244 999,773 Development EDA Fund 2,424,386 90,817 - 4,771,298 7,286,501 Redevelopment District Fund 643,006 - - - 643,006 Water Utility Fund - 184,751 - - 184,751 Sewer Utility Fund - 75,510 - 390,582 466,092 Solid Waste Fund - 6 - 420,000 420,006 Nonmajor Governmental Funds 404,653 15,150 12,835 - 432,638 Total $7,967,947 $5,898,401 $304,444 $5,741,124 $19,911,916 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) $469,313 $ - Delinquent property taxes receivable (Redevelopment District) 20,657 - Special assessments not yet due (Permanent Improvement Revolving) 986,985 - Special assessments not yet due (Housing Rehabilitation) 4,860,238 - Special assessments not yet due (Development EDA) 134,152 - Special assessments not yet due (Nonmajor Funds) 179,453 - Bond reimbursement payments not yet due (Debt Service Fund) 1,770,000 - Revenue not yet earned (General Fund) - 358,616 Revenue not yet earned (Parks and Recreation Fund) - 82,627 Total deferred/unearned revenue for governmental funds $8,420,798 $441,243 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 72 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 Note 4 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2010 was as follows: Beginning Prior Period Ending Primary Government Balance Adjustment Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $13,130,128 $ - $1,274,991 $21,724 $14,383,395 Permanent easements 1,349,000 - 50,000 - 1,399,000 Construction in progress 9,641,730 - - 7,150,324 2,491,406 Total capital assets, not being depreciated 24,120,858 - 1,324,991 7,172,048 18,273,801 Capital assets, being depreciated: Buildings and structures 27,019,935 - 8,392,357 6,111 35,406,181 Improvements other than buildings 16,596,488 - 1,460,292 266,660 17,790,120 Infrastructure 70,142,627 4,500,000 5,273,634 - 79,916,261 Machinery, furniture and equipment 6,525,426 - 843,123 126,180 7,242,369 Fleet 6,624,700 - 80,951 59,314 6,646,337 Total capital assets, being depreciated 126,909,176 4,500,000 16,050,357 458,265 147,001,268 Less accumulated depreciation for: Buildings and structures 7,348,748 - 760,362 3,692 8,105,418 Improvements other than buildings 6,658,289 - 836,508 196,365 7,298,432 Infrastructure 30,237,819 1,290,082 2,864,956 - 34,392,857 Machinery, furniture and equipment 3,078,594 - 545,644 91,286 3,532,952 Fleet 3,177,825 - 557,279 34,136 3,700,968 Total accumulated depreciation 50,501,275 1,290,082 5,564,749 325,479 57,030,627 Total capital assets being depreciated - net 76,407,901 3,209,918 10,485,608 132,786 89,970,641 Governmental activities capital assets - net $100,528,759 $3,209,918 $11,810,599 $7,304,834 $108,244,442 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 73 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 Beginning Ending Primary Government Balance Increases Decreases Balance Business-type activities: Capital assets, not being depreciated: Land $174,844 $ - $ - $174,844 Construction in progress 66,357 51,110 45,817 71,650 Total capital assets, not being depreciated 241,201 51,110 45,817 246,494 Capital assets, being depreciated: Buildings and structures 4,767,723 - - 4,767,723 Improvements other than buildings 47,572,818 10,069 - 47,582,887 Infrastructure 3,614,890 18,265 - 3,633,155 Machinery, furniture and equipment 6,958,891 1,149,724 - 8,108,615 Fleet - - - - Total capital assets, being depreciated 62,914,322 1,178,058 0 64,092,380 Less accumulated depreciation for: Buildings and structures 3,066,955 127,778 - 3,194,733 Improvements other than buildings 24,646,297 283,801 - 24,930,098 Infrastructure 988,080 653,502 - 1,641,582 Machinery, furniture and equipment 1,267,912 223,927 - 1,491,839 Fleet - - - - Total accumulated depreciation 29,969,244 1,289,008 0 31,258,252 Total capital assets being depreciated - net 32,945,078 (110,950)0 32,834,128 Business-type activities capital assets - net $33,186,279 ($59,840) $45,817 $33,080,622 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $124,608 Public safety 170,268 Public works 2,824,760 Public information 37,390 Culture and recreation 1,194,607 Economic development 125,188 Internal service 1,087,928 Total depreciation expense - governmental activities $5,564,749 Business-type activities: Water $607,240 Sewer 121,075 Storm water 560,693 Total depreciation expense - business-type activities $1,289,008 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 74 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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, 2010, long-term debt of the City consisted of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rates Issued 12/31/10 Governmental Activities: General Long-Term Debt: General Improvement Bonds: G.O. Improvement Bonds Series 1999A 6/1/1999 2/1/2011 4.45-4.55% $2,500,000 $310,000 G.O. Improvement Bonds Series 2000 5/1/2000 2/1/1930 5.38-5.90% 4,505,000 3,770,000 G.O. Improvement Bonds Series 2005A 5/25/2005 2/1/2016 3.50-3.75% 3,705,000 2,510,000 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 1,845,000 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 30,455,000 26,335,000 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 Tax Increment Refunding Bonds Series 2009A 6/11/2009 2/1/2011 2.00-2.25% 2,000,000 505,000 Total Tax Increment Bonds 14,980,000 7,410,000 Compensated absences payable N/A N/A N/A N/A 3,399,692 Total governmental activities 45,435,000 37,144,692 Business-Type Activities: General Obligation Revenue Bonds: Utility Revenue Bonds Series 2007 6/5/2007 8/1/2023 4.00% 3,665,000 3,170,000 Utility Revenue Bonds Series 2008A 12/11/2008 8/1/2020 3.25-4.25% 4,075,000 4,075,000 Utility Refunding Revenue Bonds Series 2010B 5/7/2010 2/1/2025 2.0-3.5% 4,090,000 4,090,000 Total General Obligation Revenue Bonds 11,830,000 11,335,000 Compensated absences payable N/A N/A N/A N/A 189,524 Total business-type activities 11,830,000 11,524,524 Total City $57,265,000 $48,669,216 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 75 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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 2011 $1,250,000 $892,065 $505,000 $281,409 2012 1,090,000 1,074,511 305,000 270,771 2013 1,660,000 1,039,283 315,000 260,696 2014 1,710,000 997,665 340,000 249,628 2015 1,255,000 955,726 355,000 237,465 2016 1,300,000 913,457 370,000 224,315 2017 855,000 876,094 1,085,000 197,058 2018 885,000 844,010 1,140,000 155,025 2019 910,000 808,471 435,000 124,613 2020 945,000 769,061 460,000 105,563 2021 980,000 726,261 485,000 84,300 2022 1,010,000 680,845 510,000 61,913 2023 1,045,000 632,677 535,000 38,400 2024 1,085,000 579,545 570,000 13,181 2025 1,130,000 521,486 - - 2026 1,180,000 460,673 - - 2027 1,235,000 396,674 - - 2028 1,280,000 329,599 - - 2029 1,335,000 259,440 - - 2030 1,395,000 185,780 - - 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 $26,335,000 $14,302,201 $7,410,000 $2,304,337 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 76 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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 2011 $780,000 $400,444 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 $11,335,000 $2,645,277 G.O. Revenue Bonds Governmental Activities It is not practicable to determine the specific year for payment of long-term accrued compensated absences. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 77 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2010 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement bonds $9,590,000 $19,745,000 $3,000,000 $26,335,000 $4,915,000 G.O. tax increment bonds 8,405,000 - 995,000 7,410,000 505,000 Add: Premiums on bonds 19,882 2,792 8,526 14,148 - Total bonds payable 18,014,882 19,747,792 4,003,526 33,759,148 5,420,000 Compensated absences 3,226,673 2,098,113 1,925,094 3,399,692 2,379,784 Total government activity long-term debt $21,241,555 $21,845,905 $5,928,620 $37,158,840 $7,799,784 Business-type activities: Bonds payable: G.O. revenue bonds $9,185,000 $4,090,000 $1,940,000 $11,335,000 $780,000 Add: Premiums on bonds 23,810 6,198 2,309 27,699 - Total bonds payable 9,208,810 4,096,198 1,942,309 11,362,699 780,000 Compensated absences 164,235 106,334 81,045 189,524 132,667 Total business-type activity long-term debt $9,373,045 $4,202,532 $2,023,354 $11,552,223 $912,667 For governmental activities, compensated absences are paid out of the Employee Flex Spending internal service fund. CURRENT REFUNDINGS $5,935,000 GENERAL OBLIGATION CURRENT REFUNDING BONDS, SERIES 2010B On May 7, 2010, the City issued the $5,935,000 General Obligation Current Refunding Bonds, Series 2010B with an average interest rate of 2.69% to refund the 2011 through 2016 maturities aggregating $3,365,000 principal amount of the City’s $3,265,000 General Obligation Storm Water Utility Revenue Bonds, Series 2001B and the $4,145,000 General Obligation Improvement Bonds, Series 2003A with an average interest rate of 4.52% and 3.15%, respectively. The net proceeds of $5,895,890 (after payment of $48,093 of issuance costs) was used to retire all outstanding principal of the refunded bonds on June 1, 2010 (the call date). The City refunded the 2001B Bonds to reduce its total debt service payments over the next 6 years by $130,711 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $122,924. The City refunded the 2003A Bonds to reduce its total debt service payments over the next 4 years by $64,095 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $62,041. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 78 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 $1,770,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2010C On December 29, 2010, the City issued the $1,770,000 General Obligation Current Refunding Bonds, Series 2010C with an average interest rate of 5.16% to refund on February 1, 2011. The 2012 through 2030 maturities aggregating $3,770,000 principal amount of the City’s $4,505,000 General Obligation Louisiana Court Bonds, Series 2000A with an true interest rate of 5.94%. The net proceeds of $1,698,980 (after payment of $39,397 of issuance costs) along with other resources were used to retire all outstanding principal of the refunded bonds on February 1, 2011. The City refunded the 2000A Bonds to reduce its total debt service payments over the next 18 years by $2,072,372 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $532,046. 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 1,021,313 1,104,562 2004 Tax Increment Refunding Recreation Building TIF 100% N/A 2005-2018 1,777,648 51,665 1,104,562 2008B GO Tax Increment Street Improvements TIF 100% N/A 2009-2024 7,426,007 224,063 - 2007A GO Utility Revenue Utility Infastructure Projects Utility charges 100% 35% 2008-2023 4,129,400 314,000 5,517,965 2008A GO Utility Revenue Utility Infastructure Projects Utility charges 100% 48% 2009-2020 5,005,938 152,038 3,688,174 2010A Taxable GO HIA Housing Improvement Area Housing improvement fees 100% N/A 2011-2031 5,074,848 - - 2010B GO Utility Infastructure Projects Utility charges 100% 0% 2011-2025 4,844,938 - 5,517,965 2000A Louisiana Crt Louisiana Court Project Operating revenues of La Crt 100% N/A 2000-2030 3,879,593 321,874 323,395 2010C GO Refunding - Louisiana Crt Louisiana Court Project Operating revenues of La Crt 100% N/A 2011-2040 3,431,171 - - Revenue Pledged Current Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 79 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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. 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 6.0%, respectively, of their annual covered salary in 2010. PEPFF members were required to contribute 9.4% of their annual covered salary in 2010. The City is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan GERF members and 7.0% for Coordinated Plan GERF members, and 14.1% for PEPFF members. Employer contribution rates for the Coordinated Plan will increase to 7.25% and rates for the PEPFF will increase to 14.4% effective January 1, 2011. The City’s contributions to the General Employees Retirement Fund for the years ending December 31, 2010, 2009 and 2008 were $814,291, $810,447 and $764,706, respectively. The City’s contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2010, 2009 and 2008 were $839,083, $821,953 and $717,181, respectively. The City’s contributions were equal to the contractually required contributions for each year as set by state statute. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 80 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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. 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 81 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 C. PARTICIPANTS As of the actuarial valuation dated January 1, 2009, participants consisted of: Retirees and beneficiaries currently purchasing health insurance through the City 29 Active employees 257 Total 286 Participating employers 1 D. FUNDING POLICY The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as- you-go basis. Contribution requirements are negotiated between the City and union representatives and established by Council for nonunion groups. E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION The City’s annual other post employment benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of December 31, 2010, was calculated as follows: Annual required contribution (ARC)$468,457 Interest on net OPEB obligation 28,316 Adjustment to ARC (40,938) Annual OPEB cost 455,835 Contributions made during the year (113,780) Increase (decrease) in net OPEB obligation 342,055 Net OPEB obligation - beginning of year 707,906 Net OPEB obligation - end of year $1,049,961 For governmental activities, the net OPEB obligation is generally liquidated by the Employee Flex Spending internal service fund. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 82 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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, 2008 $559,946 $190,118 34.0% $369,828 December 31, 2009 420,925 82,847 19.7% 707,906 December 31, 2010 455,835 113,780 25.0%1,049,961 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, 2009 $0 $3,260,061 $3,260,061 0.0% $16,906,064 19.3% *Using the Projected Unit Credit cost method. Note, the first OPEB actuarial valuation was conducted as of January 1, 2009. There is no data available prior to the first valuation. 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 83 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 In the January 1, 2009 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%. 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, 2010 was 27 years. 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, 2010 is as follows: Interfund Interfund Loan Loan Receivable Payable Major Funds: Housing Rehabilitation $ - $1,742,418 Permanent Improvement Revolving 234,975 - Development EDA 5,442,543 - Redevelopment District - 3,700,125 Water Utility - 810,582 Sewer Utility 390,582 - Solid Waste 420,000 - Storm Water Utility - 234,975 Total $6,488,100 $6,488,100 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, 2010 are as follows: Due From Due To Other Funds Other Funds Major Funds: Permanent Improvement Revolving $2,284,633 $ - Street Capital Projects - 2,217,974 Other Governmental Funds: Community Development - 66,659 Total $2,284,633 $2,284,633 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 84 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 Interfund transfers at December 31, 2010 are as follows: Transfers Transfers In Out General fund $2,588,235 $1,800,000 Parks and recreation 42,384 - Housing rehabilitation - 185,255 Debt service funds 1,751,750 204,041 Permanent improvement revolving - 4,946,657 Streets capital projects 6,453,913 - Development EDA - 410,344 Redevelopment district 415,844 7,027,152 Other governmental funds 557,227 400,942 Water utility 5,934 944,020 Sewer utility - 764,244 Solid waste - 1,288,100 Storm water utility - 368,491 Internal service funds 6,554,987 31,028 Total $18,370,274 $18,370,274 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 85 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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, 2010, a summary of the governmental fund balance classifications are as follows: Parks and Housing Debt Fire Station Development Redevelopment General Recreation Rehabiltation Service Bonds PIR EDA District Other Funds Total Nonspendable: Prepaid items $66,945 $10,000 $ - $ - $ - $ - $ - $ - $ - $76,945 Inventory 13,719 240,008 - - - - - - - 253,727 Interfund loans receivable - - - - - 234,975 5,442,543 - - 5,677,518 Long-term loans receivable - - 2,725,902 - - - 2,424,386 - 404,653 5,554,941 Land held for resale - - 87,915 - - - - - - 87,915 Total nonspendable $80,664 $250,008 $2,813,817 $ - $ - $234,975 $7,866,929 $ - $404,653 $11,651,046 Restricted for: Tax increment $ - $ - $ - $ - $ - $ - $ - $3,534,504 $ - $3,534,504 E-911 purposes 425,967 - - - - - - - - 425,967 Debt service - - - 6,141,651 - - - - - 6,141,651 Fire station construction - - - - 11,986,027 - - - - 11,986,027 Cable TV equipment - - - - - - - - 475,062 475,062 Police and Fire purposes - - - - - - - - 5,056,708 5,056,708 Housing and redevelopment - - - - - - - 5,102,896 - 5,102,896 Total restricted $425,967 $ - $ - $6,141,651 $11,986,027 $ - $ - $8,637,400 $5,531,770 $32,722,815 Committed to: Cable TV programming $ - $ - $ - $ - $ - $ - $ - $ - $466,792 $466,792 Assigned to: DWI enforcement $124,503 $ - $ - $ - $ - $ - $ - $ - $ - $124,503 Recreation programs - 703,332 - - - - - - - 703,332 Fire station construction - - - - 7,351 - - - - 7,351 Capital improvements - - - - - 3,845,224 - - - 3,845,224 Redevelopment purposes - - - - - - 16,125,630 - - 16,125,630 Cable TV programming - - - - - - - - 376,994 376,994 Special service district - - - - - - - - 267,027 267,027 Development of parks - - - - - - - - 2,275,754 2,275,754 Street rehabilitation - - - - - - - - 1,550,097 1,550,097 Total assigned $124,503 $703,332 $ - $ - $7,351 $3,845,224 $16,125,630 $ - $4,469,872 $25,275,912 At December 31, 2010, the City reported $21,692,426 of restricted net assets on the Statement of Net Assets as follows: Restricted for: Tax increment $3,534,504 E-911 purposes 425,967 Debt service 7,097,289 Cable TV equipment 475,062 Police and fire purposes 5,056,708 Housing and redevelopment 5,102,896 Total $21,692,426 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 86 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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, 2010, the unassigned fund balance for the General Fund was 44% 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, 2010, the assigned fund balance was 11% of the subsequent year’s budgeted expenditures. Pursuant to the guidelines established by GASB Statement No. 54, the City has reclassified its Police and Fire Pensions Fund from a Special Revenue Fund to a Capital Project Fund. This was done because the fund does not have a specified revenue source and because future expenditures from the fund are expected to be primarily capital in nature. Note 10 DEFICIT FUND BALANCE/NET ASSETS At December 31, 2010, individual funds with deficit fund balance/net assets are as follows: Amount Future Financing Source Capital Project Funds: Street Capital Projects ($2,430,281) Future transfers and MSA Redevelopment District: Duke West End TIF (407,305) Future tax increment Ellipse TIF District (3,274) Future tax increment Elmwood Village (3,297,474) Future tax increment Internal Service Funds: Employee Flex Spending (3,430,509) Future transfers Total ($9,568,843) Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 87 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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, 2010, the estimated liability for unpaid claims was immaterial and therefore, has not been recorded in the financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 88 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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, 2010. 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, 2010 the principal amount outstanding on the bonds was $3,495,000. Hoigaard Village - Tax Increment Financing Revenue Note, Series 2010B – issued in 2010, with a principal sum of $935,000, and an interest rate of 3.99% 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, 2010 the principal amount outstanding on the note was $935,000. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 89 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 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, 2010, 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 90 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 G. CONSTRUCTION COMMITMENTS The City has active construction projects as of December 31, 2010. The projects include street construction in areas with newly developed housing, widening and construction of existing streets and bridges, and the construction of additional storm sewer and utility improvements. At year end the City’s commitments with contractors are as follows: Remaining Project Commitment Flood Area #25 (27th & Jersey) $47,814 Street Improvement for Excelsior Blvd 54,451 Hwy 7/Wooddale Interchange 148,460 Commercial Meter Replacement 95,198 SW Regional Trail at Beltline Blvd 12,537 Fern Hill Park Paving 10,400 2009 Local Street Rehabilitation 27,161 WRP #1 Rehabilitation 10,512 MSC Renovation 10,399 Fire Station Construction 885,787 Sanitary sewer mainline rehabilitation 93,806 Glenhurst Lift Station 21,834 2010 LED Countdown Pedestrian Indicators 16,287 Northside Park 18,807 Storm Inventory 12,880 Total $1,466,333 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, 2010, there were 12 revenue bonds issued. The aggregate principal amount payable as of December 31, 2010 is $472,595,023. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 91 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2010 Note 13 PRIOR PERIOD ADJUSTMENTS During 2010, the City recorded four prior period adjustments as follows: • A parking ramp owned by the City with a cost of $4,500,000 and a net book value of $3,209,918 was not previously recorded. This adjustment increased net assets, but had no effect on fund balance. • Loans receivable in the amount of $140,302 were recorded in the Redevelopment District Fund and $399,275 in the Community Development Fund. Both fund balance and net assets increased as a result of this adjustment. • During 2008, expenditures were incorrectly recorded in the Redevelopment District Fund ($803,056) and in the Debt Service Fund ($9,292). The expenditures were paid out of an external escrow fund and therefore, should not have been recorded as City expenditures. Both fund balance and net assets increased as a result of this adjustment. • During 2009, interest in the amount of $51,474 should have been charged on an interfund loan payable from the Housing Rehabilitation Fund to the Development EDA Fund. At January 1, 2010 the fund balance of each fund was corrected to record the interest. This adjustment had no affect on net assets. Note 14 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. 57 OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2011. 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 June 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. 62 Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2011. The effect these standards may have on future financial statements is not determinable at this time. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 92 REQUIRED SUPPLEMENTARY INFORMATION Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 93 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, 2010 With Comparative Actual Amounts For The Year Ended December 31, 2009 Budgeted Amounts Original Final Revenues: Property taxes $15,528,521 $15,528,521 $15,061,267 ($467,254) $15,162,792 Licenses and permits: Business regulatory licenses 567,088 567,088 636,778 69,690 621,104 Non-business licenses and permits 1,727,680 1,727,680 1,722,316 (5,364) 2,158,063 Total licenses and permits 2,294,768 2,294,768 2,359,094 64,326 2,779,167 Intergovernmental: Federal 28,000 28,000 53,772 25,772 57,225 State shared taxes: Highway user tax 450,000 450,000 479,310 29,310 455,023 Market value homestead credit (638,916) (638,916) 2,723 641,639 4,292 Insurance premium tax 650,000 650,000 532,719 (117,281) 530,822 State of Minnesota: Other 60,000 60,000 76,341 16,341 73,662 PERA 45,205 45,205 45,205 - 45,205 Police training reimbursement 17,000 17,000 18,283 1,283 20,217 School district - - 780 780 - Other local governments 348,582 348,582 369,812 21,230 383,863 Total intergovernmental 959,871 959,871 1,578,945 619,074 1,570,309 Charges for services: General government 699,318 699,318 745,657 46,339 624,920 Public safety 108,800 108,800 103,088 (5,712) 81,884 Public works - signals/lighting 330,000 330,000 295,231 (34,769) 328,050 Rent of City property 85,000 85,000 100,000 15,000 100,000 Total charges for services 1,223,118 1,223,118 1,243,976 20,858 1,134,854 Fines and forfeits: Municipal court 300,250 300,250 257,618 (42,632) 318,395 Liquor violations 8,000 8,000 10,000 2,000 6,000 Property forfeits 3,500 3,500 133,847 130,347 7,549 Miscellaneous violations - - 89 89 750 Total fines and forfeits 311,750 311,750 401,554 89,804 332,694 Investment income 200,000 200,000 105,927 (94,073) 260,263 Miscellaneous 16,500 16,500 40,285 23,785 70,876 Total revenues 20,534,528 20,534,528 20,791,048 256,520 21,310,955 2010 Actual Amounts Variance with Final Budget - Positive (Negative) 2009 Actual Amounts Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 94 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, 2010 With Comparative Actual Amounts For The Year Ended December 31, 2009 Budgeted Amounts Expenditures: Original Final General government: Legislative: Current: Personal services $ - $ - $ - $ - $82,923 Other services and charges - - - - 100 Total legislative 000083,023 Administration: Current: Personal services - - 482,949 (482,949) 434,735 Supplies 504,551 444,400 2,927 441,473 3,891 Other services and charges 476,972 476,972 354,276 122,696 407,806 Total administration 981,523 921,372 840,152 81,220 846,432 General services: Supplies - - 20,812 (20,812) - Other services and charges 180,000 180,681 48,445 132,236 17,158 Capital outlay - - 209,297 (209,297) - Total general services 180,000 180,681 278,554 (97,873) 17,158 Human resources: Current: Personal services 480,800 482,400 485,189 (2,789) 478,862 Supplies 2,000 2,000 1,691 309 1,943 Other services and charges 160,550 160,550 106,448 54,102 102,367 Total human resources 643,350 644,950 593,328 51,622 583,172 Communications, marketing and community outreach Current: Personal services 263,130 266,530 239,914 26,616 224,186 Materials and supplies 950 950 5,443 (4,493) - Other services and charges 100,680 100,680 77,638 23,042 128,718 Total communications, etc.364,760 368,160 322,995 45,165 352,904 Technology and support services: Current: Personal services 515,250 516,150 525,028 (8,878) 573,640 Materials and supplies 23,500 23,500 51,697 (28,197) 23,986 Other services and charges 861,016 861,016 807,506 53,510 817,168 Total technology and support services 1,399,766 1,400,666 1,384,231 16,435 1,414,794 Accounting: Current: Personal services 466,000 444,200 419,290 24,910 971,763 Materials and supplies 3,000 3,000 3,035 (35) 3,562 Other services and charges 141,650 141,650 140,022 1,628 145,912 Total accounting 610,650 588,850 562,347 26,503 1,121,237 2010 Actual Amounts Variance with Final Budget - Positive (Negative) 2009 Actual Amounts Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 95 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, 2010 With Comparative Actual Amounts For The Year Ended December 31, 2009 Budgeted Amounts Expenditures: (continued) Original Final General government: (continued) Assessing: Current: Personal services $471,200 $476,600 $476,360 $240 $ - Materials and supplies 1,225 1,225 1,582 (357) - Other services and charges 12,255 12,255 10,609 1,646 - Total assessing 484,680 490,080 488,551 1,529 0 Facilities maintenance: Current: Personal services 552,900 546,200 471,503 74,697 529,197 Materials and supplies 112,150 112,150 98,506 13,644 77,443 Other services and charges 423,392 423,392 369,766 53,626 413,488 Capital outlay - - 13,084 (13,084) - Total facilities maintenance 1,088,442 1,081,742 952,859 128,883 1,020,128 Community development: Current: Personal services $997,500 $1,004,800 $978,086 $26,714 $998,003 Materials and supplies 1,700 1,700 530 1,170 836 Other services and charges 47,750 47,750 40,499 7,251 51,493 Total community development 1,046,950 1,054,250 1,019,115 35,135 1,050,332 Total general government 6,800,121 6,730,751 6,442,132 288,619 6,489,180 Public safety: Police: Current: Personal services 6,585,394 6,609,294 6,481,928 127,366 6,440,671 Materials and supplies 181,625 181,625 109,591 72,034 114,734 Other services and charges 515,483 515,483 380,179 135,304 389,175 Capital outlay - - 14,969 (14,969) - Total police 7,282,502 7,306,402 6,986,667 319,735 6,944,580 Fire protection: Current: Personal services 2,799,167 2,827,180 2,741,456 85,724 2,748,867 Materials and supplies 76,810 76,810 72,189 4,621 85,587 Other services and charges 218,183 218,183 175,903 42,280 197,255 Total fire protection 3,094,160 3,122,173 2,989,548 132,625 3,031,709 Inspection services: Current: Personal services 1,688,923 1,714,600 1,625,832 88,768 1,820,593 Materials and supplies 21,500 21,500 6,106 15,394 11,893 Other services and charges 80,127 80,127 97,214 (17,087) 85,867 Total inspection services 1,790,550 1,816,227 1,729,152 87,075 1,918,353 Total public safety 12,167,212 12,244,802 11,705,367 539,435 11,894,642 2010 Actual Amounts Variance with Final Budget - Positive (Negative) 2009 Actual Amounts Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 96 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, 2010 With Comparative Actual Amounts For The Year Ended December 31, 2009 Budgeted Amounts Expenditures: (continued) Original Final Public works: Administration: Current: Personal services $826,600 $825,800 $846,857 ($21,057) $890,841 Materials and supplies 5,000 5,000 3,450 1,550 4,319 Other services and charges 24,100 24,100 22,538 1,562 18,416 Total administration 855,700 854,900 872,845 (17,945) 913,576 Engineering: Current: Personal services 744,000 751,000 738,778 12,222 739,342 Materials and supplies 14,050 14,050 5,356 8,694 3,714 Other services and charges 64,750 64,750 54,106 10,644 53,962 Total engineering 822,800 829,800 798,240 31,560 797,018 Operations: Current: Personal services 1,229,866 1,230,300 1,246,865 (16,565) 1,226,898 Materials and supplies 482,500 482,500 534,800 (52,300) 376,132 Other services and charges 796,300 796,300 793,481 2,819 780,427 Total operations 2,508,666 2,509,100 2,575,146 (66,046) 2,383,457 Total public works 4,187,166 4,193,800 4,246,231 (52,431) 4,094,051 Total expenditures 23,154,499 23,169,353 22,393,730 775,623 22,477,873 Revenues over (under) expenditures (2,619,971) (2,634,825) (1,602,682) 1,032,143 (1,166,918) Other financing sources (uses): Transfers in 2,583,825 2,583,825 2,588,235 4,410 2,685,300 Transfers out - - (1,800,000) (1,800,000) (1,400,000) Total other financing sources (uses) 2,583,825 2,583,825 788,235 (1,795,590) 1,285,300 Net change in fund balance ($36,146) ($51,000) (814,447) ($763,447) 118,382 Fund balance - January 1 11,844,982 11,726,600 Fund balance - December 31 $11,030,535 $11,844,982 2010 Actual Amounts Variance with Final Budget - Positive (Negative) 2009 Actual Amounts Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 97 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - PARKS AND RECREATION FUND For The Year Ended December 31, 2010 With Comparative Actual Amounts For The Year Ended December 31, 2009 Budgeted Amounts Original Final Revenues: Property taxes $4,014,872 $4,014,872 $4,014,872 $ - $4,073,118 Licenses and permits 6,275 6,275 622 (5,653) 6,865 Intergovernmental - other 71,219 71,219 89,631 18,412 67,622 Fines and forfeits - - 56 56 - Charges for services 1,071,900 1,071,900 1,022,344 (49,556) 1,042,612 Rental income 896,900 896,900 924,696 27,796 950,668 Investment income - - 1,349 1,349 760 Miscellaneous 25,000 25,000 48,366 23,366 33,891 Total revenues 6,086,166 6,086,166 6,101,936 15,770 6,175,536 Expenditures: Culture and recreation: Current: Personal services 3,466,679 3,450,566 3,479,624 (29,058) 3,414,868 Supplies 907,881 907,881 907,777 104 745,837 Other services and charges 1,720,719 1,720,719 1,675,628 45,091 1,674,819 Capital outlay 7,000 7,000 - 7,000 - Total expenditures 6,102,279 6,086,166 6,063,029 23,137 5,835,524 Revenues over (under) expenditures (16,113)0 38,907 38,907 340,012 Other financing sources: Transfers in - - 42,384 42,384 33,274 Proceeds from sale of capital assets - - 1,500 1,500 - Total other financing sources 0 0 43,884 43,884 33,274 Net change in fund balance ($16,113)$0 82,791 $82,791 373,286 Fund balance - January 1 870,549 497,263 Fund balance - December 31 $953,340 $870,549 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. 2010 Actual Amounts Variance with Final Budget - Positive (Negative) 2009 Actual Amounts Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 98 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, 2010 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)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% *Using the projected unit credit actuarial pay cost method. Note: the first (and most recent) OPEB actuarial valuation was conducted as of January 1, 2009. There is no data Note: the first (and most recent) OPEB actuarial valuation was conducted as of January 1, 2009. There is no data available prior to or since the first valuation. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 99 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 100 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 101 NONMAJOR GOVERNMENTAL FUNDS Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 102 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). Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 103 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 12 NONMAJOR GOVERNMENTAL FUNDS December 31, 2010 With Comparative Totals For December 31, 2009 Special Capital Revenue Project 2010 2009 Assets Cash and investments $1,514,433 $8,816,261 $10,330,694 $10,416,109 Accrued interest receivable 5,377 29,506 34,883 53,639 Due from other governments 92,227 - 92,227 166,636 Accounts receivable 148,863 230,310 379,173 376,572 Special assessments receivable: Delinquent 12,056 166 12,222 9,087 Deferred 167,253 - 167,253 167,363 Loans receivable - noncurrent 404,653 - 404,653 - Total assets $2,344,862 $9,076,243 $11,421,105 $11,189,406 Liabilities and Fund Balance Liabilities: Accounts payable $107,294 $16,841 $124,135 $212,154 Salaries payable 13,757 - 13,757 11,714 Due to other governments 18 306 324 39,556 Nonmajor Totals Governmental Funds Due to other governments 18 306 324 39,556 Contracts payable - 176,371 176,371 151,065 Due to other funds 66,659 - 66,659 151,488 Deferred revenue 179,287 166 179,453 167,363 Total liabilities 367,015 193,684 560,699 733,340 Fund balance: Nonspendable 404,653 - 404,653 - Restricted 475,062 5,056,708 5,531,770 5,807,879 Committed 466,792 - 466,792 3,957,336 Assigned 644,021 3,825,851 4,469,872 696,549 Unassigned (12,681) - (12,681)(5,698) Total fund balance 1,977,847 8,882,559 10,860,406 10,456,066 Total liabilities and fund balance $2,344,862 $9,076,243 $11,421,105 $11,189,406 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 104 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, 2010 With Comparative Totals For The Year Ended December 31, 2009 Special Capital Revenue Project 2010 2009 Revenues: Taxes: Property $ - $1,225,000 $1,225,000 $1,110,003 Franchise 586,353 910,825 1,497,178 1,503,075 Intergovernmental: State - - - 14,900 Other 241,114 44,702 285,816 280,364 Charges for services 7,372 11,838 19,210 67,336 Special assessments 154,878 599 155,477 203,363 Interest on investments 14,737 88,904 103,641 243,823 Miscellaneous 9,205 10,249 19,454 267,611 Total revenues 1,013,659 2,292,117 3,305,776 3,690,475 Expenditures: Current: Public safety - 1,504 1,504 12,847 Public works - 244,069 244,069 314,706 Public information 387,459 - 387,459 445,146 Culture and recreation - 171,909 171,909 191,535 Housing and maintenance 241,170 - 241,170 128,099 Social economic development 239,262 - 239,262 176,151 Capital outlay: Public safety - - - - Public works - 1,095,389 1,095,389 1,182,428 Public information 92,086 - 92,086 295,924 Culture and recreation - 990,548 990,548 1,249,926 Debt service: Bond issuance costs - - - - Total expenditures 959,977 2,503,419 3,463,396 3,996,762 Revenues over (under) expenditures 53,682 (211,302) (157,620) (306,287) Other financing sources (uses): Transfers in - 557,227 557,227 107,097 Transfers out (166,942) (234,000) (400,942) (1,042,479) Proceeds from sale of capital assets 6,400 - 6,400 - Total other financing sources (uses)(160,542)323,227 162,685 (935,382) Net change in fund balance (106,860)111,925 5,065 (1,241,669) Fund balance - January 1, as previously stated 1,685,432 8,770,634 10,456,066 11,697,735 Prior period adjustment 399,275 - 399,275 - Fund balance - January 1, as restated 2,084,707 8,770,634 10,855,341 11,697,735 Fund balance - December 31 $1,977,847 $8,882,559 $10,860,406 $10,456,066 Totals Nonmajor Governmental Funds Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 105 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 106 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 107 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 14 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2010 With Comparative Totals For December 31, 2009 2010 2009 Assets Cash and investments $1,180,122 $ - $334,311 $1,514,433 $1,622,547 Accrued interest receivable 4,329 - 1,048 5,377 8,612 Due from other governments - 92,227 - 92,227 151,736 Accounts receivable 148,863 - - 148,863 148,853 Special assessments receivable: Delinquent - - 12,056 12,056 9,087 Deferred - - 167,253 167,253 166,680 Loans receivable - noncurrent - 404,653 - 404,653 - Total assets $1,333,314 $496,880 $514,668 $2,344,862 $2,107,515 Liabilities and Fund Balance Liabilities: Accounts payable $691 $38,249 $68,354 $107,294 $60,103 Salaries payable 13 757 13 757 11 714 Totals Nonmajor Special Revenue Funds2600 Cable Television 2650 Community Development Special Service Districts Salaries payable 13,757 - - 13,757 11,714 Due to other governments 18 - - 18 32,098 Due to other funds - 66,659 - 66,659 151,488 Deferred revenue - - 179,287 179,287 166,680 Total liabilities 14,466 104,908 247,641 367,015 422,083 Fund balance: Nonspendable - 404,653 - 404,653 - Restricted 475,062 - - 475,062 567,147 Committed 466,792 - - 466,792 427,434 Assigned 376,994 - 267,027 644,021 696,549 Unassigned - (12,681) - (12,681) (5,698) Total fund balance 1,318,848 391,972 267,027 1,977,847 1,685,432 Total liabilities and fund balance $1,333,314 $496,880 $514,668 $2,344,862 $2,107,515 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 108 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, 2010 With Comparative Totals For The Year Ended December 31, 2009 2010 2009 Revenues: Franchise taxes $586,353 $ - $ - $586,353 $581,928 Intergovernmental - other - 241,114 - 241,114 235,662 Charges for services - - 7,372 7,372 57,045 Special assessments - - 154,878 154,878 202,495 Interest on investments 11,489 - 3,248 14,737 39,592 Miscellaneous 860 5,678 2,667 9,205 2,756 Total revenues 598,702 246,792 168,165 1,013,659 1,119,478 Expenditures: Current: Public information: Personal services 342,463 - - 342,463 336,380 Supplies 15,217 - - 15,217 23,133 Other services and charges 29,779 - - 29,779 85,633 Housing maintenance: Personal services - 14,157 - 14,157 13,050 Other services and charges - 227,013 - 227,013 115,049 Social and economic development: Supplies - - 13,601 13,601 21,410 Other services and charges - - 225,661 225,661 154,741 Capital outlay: Public information 92,086 - - 92,086 295,924 Total expenditures 479,545 241,170 239,262 959,977 1,045,320 Revenues over (under) expenditures 119,157 5,622 (71,097) 53,682 74,158 Other financing sources (uses): Transfers out (159,715) (7,227) - (166,942) (262,097) Proceeds from sale of capital assets 6,400 - - 6,400 - Total other financing sources (uses) (153,315) (7,227)0 (160,542) (262,097) Net change in fund balance (34,158) (1,605) (71,097) (106,860) (187,939) Fund balance - January 1, as previously stated 1,353,006 (5,698) 338,124 1,685,432 1,873,371 Prior period adjustment - 399,275 - 399,275 - Fund balance - January 1, as restated 1,353,006 393,577 338,124 2,084,707 1,873,371 Fund balance - December 31 $1,318,848 $391,972 $267,027 $1,977,847 $1,685,432 Totals Nonmajor Special Revenue Funds2600 Cable Television 2650 Community Development Special Service Districts Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 109 CITY OF ST. LOUIS PARK, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - Statement 16 BUDGET AND ACTUAL CABLE TELEVISION FUND For The Year Ended December 31, 2010 With Comparative Actual Amounts For The Year Ended December 31, 2009 Budgeted Amounts Original Final Revenues: Franchise taxes $550,000 $550,000 $586,353 $36,353 $581,928 Interest on investments 50,000 50,000 11,489 (38,511) 33,172 Miscellaneous - - 860 860 1,759 Total revenues 600,000 600,000 598,702 (1,298) 616,859 Expenditures: Public information: Current: Personal services 339,300 339,300 342,463 (3,163) 336,380 Supplies 12,600 12,600 15,217 (2,617) 23,133 Other services and charges 64,800 64,800 29,779 35,021 85,633 Total current 416,700 416,700 387,459 29,241 445,146 Capital outlay - - 92,086 (92,086) 295,924 Total expenditures 416,700 416,700 479,545 (62,845) 741,070 Revenues over (under) expenditures 183,300 183,300 119,157 (64,143) (124,211) Other financing sources (uses): Transfers out (159,715) (159,715) (159,715) - (155,000) Proceeds from sale of capital assets - - 6,400 6,400 - Total other financing sources (uses)(159,715) (159,715) (153,315) 6,400 (155,000) Net change in fund balance $23,585 $23,585 (34,158) ($57,743) (279,211) Fund balance - January 1 1,353,006 1,632,217 Fund balance - December 31 $1,318,848 $1,353,006 2010 Actual Amounts Variance with Final Budget - Positive (Negative) 2009 Actual Amounts Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 110 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 111 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 17 NONMAJOR CAPITAL PROJECT FUNDS December 31, 2010 With Comparative Totals For December 31, 2009 4065 Park Improvement 4500 Pavement Management 2900 Police and Fire Pensions 2010 2009 Assets Cash and investments $2,322,988 $1,454,582 $5,038,691 $8,816,261 $8,793,562 Accrued interest receivable 6,539 4,950 18,017 29,506 45,027 Due from other governments - - - - 14,900 Accounts receivable - 230,310 - 230,310 227,719 Special assessments - delinquent 38 128 - 166 - Special assessments - deferred - - - - 683 Total assets $2,329,565 $1,689,970 $5,056,708 $9,076,243 $9,081,891 Liabilities and Fund Balance Liabilities: Accounts payable $16,841 $ - $ - $16,841 $152,051 Due to other governments 244 62 - 306 7,458 Contracts payable 36,688 139,683 - 176,371 151,065 Deferred revenue 38 128 - 166 683 Total liabilities 53,811 139,873 0 193,684 311,257 Fund balance: Restricted - - 5,056,708 5,056,708 5,240,732 Assigned 2,275,754 1,550,097 - 3,825,851 3,529,902 Total fund balance 2,275,754 1,550,097 5,056,708 8,882,559 8,770,634 Total liabilities and fund balance $2,329,565 $1,689,970 $5,056,708 $9,076,243 $9,081,891 Totals Nonmajor Capital Project Funds Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 112 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES,Statement 18 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2010 With Comparative Totals For The Year Ended December 31, 2009 4065 Park Improvement 4500 Pavement Management 2900 Police and Fire Pensions Revenues:2010 2009 Taxes: Property taxes $810,000 $415,000 $ - $1,225,000 $1,110,003 Franchise - 910,825 - 910,825 921,147 Intergovernmental: State - - - - 14,900 Other 44,702 - - 44,702 44,702 Charges for services 9,000 2,838 - 11,838 10,291 Special assessments 138 461 - 599 868 Investment income 19,122 18,302 51,480 88,904 204,231 Miscellaneous 10,248 1 - 10,249 264,855 Total revenues 893,210 1,347,427 51,480 2,292,117 2,570,997 Expenditures: Current: Public safety - - 1,504 1,504 12,847 Public works - 244,069 - 244,069 314,706 Culture and recreation 171,909 - - 171,909 191,535 Capital outlay: Public safety - - - - - Public works - 1,095,389 - 1,095,389 1,182,428 Culture and recreation 990,548 - - 990,548 1,249,926 Debt service: Bond issuance costs - - - - - Total expenditures 1,162,457 1,339,458 1,504 2,503,419 2,951,442 Revenues over (under) expenditures (269,247) 7,969 49,976 (211,302) (380,445) Other financing sources (uses): Transfers in 557,227 - - 557,227 107,097 Transfers out - - (234,000) (234,000) (780,382) Total other financing sources (uses) 557,227 0 (234,000) 323,227 (673,285) Net change in fund balance 287,980 7,969 (184,024) 111,925 (1,053,730) Fund balance - January 1 1,987,774 1,542,128 5,240,732 8,770,634 9,824,364 Fund balance - December 31 $2,275,754 $1,550,097 $5,056,708 $8,882,559 $8,770,634 Totals Nonmajor Capital Project Funds Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 113 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 114 MAJOR DEBT SERVICE FUNDS ____________________________________ 3890 - 2008B General Obligation Tax Increment Bond 3870 - 2005A General Obligation Bond 3850 - 2004 General Obligation Tax Increment Refunding 3450 - 2003 General Obligation Bond 3600 - 2000 General Obligaiton Bond Reserve 3610 - 2000 General Obligation Bond 3400 - 1999 General Obligation Bond 3875 – Hoigaard’s 2010 A & B TIF Notes 3480 – 2010D General Obligation Fire Station Bond Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 115 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET MAJOR DEBT SERVICE FUNDS December 31, 2010 With Comparative Totals For December 31, 2009 3400 1999 General Obligation Bond 3450 2003 General Obligation Bond 3480 2010D General Obligation Fire Station Bond 3600 2000 General Obligation Bond Reserve Assets Cash and investments $376,040 $559,437 $387,403 $121,105 Accrued interest receivable 935 1,376 459 - Loans receivable - current - - - - Loans receivable - noncurrent - - - - Total assets $376,975 $560,813 $387,862 $121,105 Liabilities and Fund Balance Liabilities: Accounts payable $ - $2,000 $ - $ - Due to other funds - - - - Deferred revenue - - - - Total liabilities 0 2,000 0 0 Fund balance: Restricted 376,975 558,813 387,862 121,105 Total liabilities and fund balance $376,975 $560,813 $387,862 $121,105 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 116 Statement 19 3610 2000 General Obligation Bond 3870 2005A General Obligation Bond 3875 Hoigaard's 2010 A & B TIF Notes 3890 2008B General Obligation Tax Increment Bond 2010 2009 $3,850,469 $553,468 $165,647 $124,898 $6,138,467 $2,247,152 - 1,379 590 445 5,184 6,756 - - - - - 100,000 1,770,000 - - - 1,770,000 3,770,000 $5,620,469 $554,847 $166,237 $125,343 $7,913,651 $6,123,908 $ - $ - $ - $ - $2,000 $3,000 - - - - - 52,838 1,770,000 - - - 1,770,000 3,870,000 1,770,000 0 0 0 1,772,000 3,925,838 3,850,469 554,847 166,237 125,343 6,141,651 2,198,070 $5,620,469 $554,847 $166,237 $125,343 $7,913,651 $6,123,908 Totals Debt Service Funds Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 117 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, 2010 With Comparative Totals For The Year Ended December 31, 2009 3400 1999 General Obligation Bond 3450 2003 General Obligation Bond 3480 2010D General Obligation Fire Station Bond 3600 2000 General Obligation Bond Reserve 3610 2000 General Obligation Bond Revenues: Property taxes $340,400 $519,400 $ - $ - $ - Investment income 443 583 242 146 91 Miscellaneous - other - - - - 2,083,506 Total revenues 340,843 519,983 242 146 2,083,597 Expenditures: Debt service: Principal 290,000 415,000 - - 100,000 Interest and other 20,595 62,476 8 - 221,874 Bond issuance costs - 14,962 - - 71,021 Total expenditures 310,595 492,438 8 0 392,895 Revenues over (under) expenditures 30,248 27,545 234 146 1,690,702 Other financing sources (uses): Transfers in - - - - 204,041 Transfers out - - - (204,041) - Bond premium - 2,792 - - - Bonds issued - - 387,628 - - Refunding bonds issued - 1,845,000 - - 1,770,000 Redemption of refunded bonds - (1,825,000) - - - Refunding TIF notes issued - - - - - Redemption of TIF notes - - - - - Payments to refunded bond escrow agent - - - - - Total other financing sources (uses)0 22,792 387,628 (204,041) 1,974,041 Net change in fund balance 30,248 50,337 387,862 (203,895) 3,664,743 Fund balance - January 1, as previously stated 346,727 508,476 - 325,000 185,726 Prior period adjustment - - - - - Fund balance - January 1, as restated 346,727 508,476 0 325,000 185,726 Fund balance (deficit) - December 31 $376,975 $558,813 $387,862 $121,105 $3,850,469 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 118 Statement 20 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 3880 Hoigaard's 3890 2008B General Obligation Tax Increment Bond 2010 2009 $ - $ - $498,900 $ - $ - $ - $1,358,700 $1,347,000 - - 1,039 311 - 1,321 4,176 24,069 - - - - - - 2,083,506 318,134 0 0 499,939 311 0 1,321 3,446,382 1,689,203 995,000 - 370,000 - - - 2,170,000 8,819,000 26,763 51,664 98,626 10 370,247 224,570 1,076,833 1,322,477 - - - - 173,406 - 259,389 - 1,021,763 51,664 468,626 10 543,653 224,570 3,506,222 10,141,477 (1,021,763) (51,664) 31,313 301 (543,653) (223,249) (59,840) (8,452,274) 1,016,616 43,958 - - 487,135 - 1,751,750 5,683,027 - - - - - - (204,041) (344,788) - - - - - - 2,792 10,202 - - - - - - 387,628 2,000,000 - - - - - - 3,615,000 - - - - - - - (1,825,000) - - - - 165,936 4,264,064 - 4,430,000 - - - - - (4,164,000) - (4,164,000) - - - - - - - - (2,134,425) 1,016,616 43,958 0 165,936 587,199 0 3,994,129 5,214,016 (5,147) (7,706) 31,313 166,237 43,546 (223,249) 3,934,289 (3,238,258) 5,147 7,706 523,534 - (52,838) 348,592 2,198,070 5,436,328 - - - - 9,292 - 9,292 - 5,147 7,706 523,534 0 (43,546) 348,592 2,207,362 5,436,328 $0 $0 $554,847 $166,237 $0 $125,343 $6,141,651 $2,198,070 Totals Debt Service Funds Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 119 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 120 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 4970 – Hoigaard’s 4980 – Highway 7 Business Center Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 121 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 122 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 21 MAJOR REDEVELOPMENT DISTRICT FUNDS Page 1 of 2 December 31, 2010 With Comparative Totals For December 31, 2009 4780 Duke West End TIF 4785 Ellipse TIF District 4798 HRA Levy 4855 Trunk Highway 7 4865 HSTI Assets Cash and investments $ - $ - $5,083,871 $201,908 $649,630 Accrued interest receivable 1,057 - 19,214 2,062 996 Accounts receivable - - - - - Taxes receivable - unremitted - - 5,811 - - Taxes receivable - delinquent - - 20,657 - - Due from other funds - - - - - Loans receivable - noncurrent - - - - - Total assets $1,057 $0 $5,129,553 $203,970 $650,626 Liabilities and Fund Balance Liabilities: Accounts payable $6,060 $407 $6,000 $407 $2,480 Due to other governments 1,622 1,622 - 4,275 1,622 Interfund loan payable 400,680 1,245 - - - Deposits payable -----Deposits payable - - - - - Deferred revenue - - 20,657 - - Total liabilities 408,362 3,274 26,657 4,682 4,102 Fund balance (deficit): Restricted - - 5,102,896 199,288 646,524 Unassigned (407,305) (3,274) - - - Total fund balance (deficit)(407,305) (3,274) 5,102,896 199,288 646,524 Total liabilities and fund balance $1,057 $0 $5,129,553 $203,970 $650,626 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 123 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET MAJOR REDEVELOPMENT DISTRICT FUNDS December 31, 2010 With Comparative Totals For December 31, 2009 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 $355,593 $377,594 $374,142 $220,864 $442,458 Accrued interest receivable 778 2,723 861 512 - Accounts receivable - - - - - Taxes receivable - unremitted 1,943 - - - 45,636 Taxes receivable - delinquent - - - - - Due from other funds - - - - - Loans receivable - noncurrent - 643,006 - - - Total assets $358,314 $1,023,323 $375,003 $221,376 $488,094 Liabilities and Fund Balance Liabilities: Accounts payable $407 $692 $841 $841 $841 Due to other governments 1,622 1,622 1,622 1,622 1,622 Interfund loan payable - - - - - Deposits payable -----Deposits payable - - - - - Deferred revenue - - - - - Total liabilities 2,029 2,314 2,463 2,463 2,463 Fund balance (deficit): Restricted 356,285 1,021,009 372,540 218,913 485,631 Unassigned - - - - - Total fund balance (deficit)356,285 1,021,009 372,540 218,913 485,631 Total liabilities and fund balance $358,314 $1,023,323 $375,003 $221,376 $488,094 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 124 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 2010 2009 $36,796 $ - $82,525 $107,101 $17,426 $7,949,908 $7,977,834 50 - 141 127 - 28,521 37,541 - - - - - - 3,568 - 6,158 - - - 59,548 89,846 - - - - - 20,657 19,802 - - - - - - 52,838 - - - - - 643,006 - $36,846 $6,158 $82,666 $107,228 $17,426 $8,701,640 $8,181,429 $841 $3,810 $841 $841 $841 $26,150 $11,299 1,622 1,622 1,622 1,622 1,622 25,361 79,248 - 3,298,200 - - - 3,700,125 860,564 ------812 348 Totals Redevelopment District Funds - - - - - - 812,348 - - - - - 20,657 19,802 2,463 3,303,632 2,463 2,463 2,463 3,772,293 1,783,261 34,383 - 80,203 104,765 14,963 8,637,400 7,928,070 - (3,297,474) - - - (3,708,053) (1,529,902) 34,383 (3,297,474) 80,203 104,765 14,963 4,929,347 6,398,168 $36,846 $6,158 $82,666 $107,228 $17,426 $8,701,640 $8,181,429 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 125 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 126 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES,Statement 22 EXPENDITURES AND CHANGES IN FUND BALANCE Page 1 of 2 MAJOR REDEVELOPMENT DISTRICT FUNDS For The Year Ended December 31, 2010 With Comparative Totals For The Year Ended December 31, 2009 4780 Duke West End TIF 4785 Ellipse TIF District 4798 HRA Levy 4855 Trunk Highway 7 4865 HSTI Revenues: Property taxes $ - $ - $1,003,783 $ - $ - Tax increments - - - 1,104,562 1,043,647 Intergovernmental - - 31,025 - 724 Investment income - - 55,305 5,043 2,785 Total revenues 0 0 1,090,113 1,109,605 1,047,156 Expenditures: Current: Social and economic development 29,117 3,274 52,532 4,032 498,008 Capital outlay: Social and economic development - - - - - Total expenditures 29,117 3,274 52,532 4,032 498,008 Revenues over (under) expenditures (29,117) (3,274) 1,037,581 1,105,573 549,148 Other financing sources (uses): Transfers in - - - - - Transfers in Transfers out - - (971,687) (1,060,574) - Total other financing sources (uses)0 0 (971,687) (1,060,574)0 Net change in fund balance (29,117) (3,274) 65,894 44,999 549,148 Fund balance (deficit) - January 1, as previous (378,188) - 5,037,002 154,289 97,376 Prior period adjustment - - - - - Fund balance (deficit) - January 1, as restated (378,188)0 5,037,002 154,289 97,376 Fund balance (deficit) - December 31 ($407,305) ($3,274) $5,102,896 $199,288 $646,524 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 127 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, 2010 With Comparative Totals For The Year Ended December 31, 2009 4870 Victoria Ponds 4875 Park Center Housing 4880 CSM TIF District 4900 Mill City TIF District 4920 Park Commons TIF District 4930 Edgewood TIF District Revenues: Property taxes $ - $ - $ - $ - $ - $ - Tax increments 414,795 101,785 386,518 231,545 1,721,681 68,796 Intergovernmental 5,132 - 7,824 - 21,134 - Investment income 484 12,012 1,601 944 - - Total revenues 420,411 113,797 395,943 232,489 1,742,815 68,796 Expenditures: Current: Social and economic development 155,554 4,450 352,540 220,525 1,674,749 69,882 Capital outlay: Social and economic development - - - - - - Total expenditures 155,554 4,450 352,540 220,525 1,674,749 69,882 Revenues over (under) expenditures 264,857 109,347 43,403 11,964 68,066 (1,086) Other financing sources (uses): Transfers in - - - - - - Transfers in Transfers out - - - - - - Total other financing sources (uses)0 0 0 0 0 0 Net change in fund balance 264,857 109,347 43,403 11,964 68,066 (1,086) Fund balance (deficit) - January 1 91,428 771,360 329,137 206,949 417,565 35,469 Prior period adjustment - 140,302 - - - - Fund balance (deficit) - January 1, as restated 91,428 911,662 329,137 206,949 417,565 35,469 Fund balance (deficit) - December 31 $356,285 $1,021,009 $372,540 $218,913 $485,631 $34,383 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 128 Statement 22 Page 2 of 2 4940 Elmwood Village 4950 Wolfe Lake TIF District 4965 Aquila Commons 4970 Hoigaard's 4980 Highway 7 Business Center 2010 2009 $ - $ - $ - $ - $ - $1,003,783 $996,542 1,103,200 129,251 185,555 - 158,228 6,649,563 6,856,797 22,935 - 14,337 - - 103,111 146,542 8,188 117 - - - 86,479 217,933 1,134,323 129,368 199,892 0 158,228 7,842,936 8,217,814 102,195 124,771 194,982 3,688 153,508 3,643,807 5,092,877 - - - - - - 24,839 102,195 124,771 194,982 3,688 153,508 3,643,807 5,117,716 1,032,128 4,597 4,910 (3,688)4,720 4,199,129 3,100,098 31,749 - - 384,095 - 415,844 208,435 Totals Redevelopment District Funds 31,749 384,095 415,844 208,435 (4,963,142) - - (31,749) - (7,027,152) (6,902,991) (4,931,393)0 0 352,346 0 (6,611,308) (6,694,556) (3,899,265)4,597 4,910 348,658 4,720 (2,412,179) (3,594,458) 601,791 75,606 99,855 (1,151,714) 10,243 6,398,168 9,992,626 - - - 803,056 - 943,358 - 601,791 75,606 99,855 (348,658) 10,243 7,341,526 9,992,626 ($3,297,474) $80,203 $104,765 $0 $14,963 $4,929,347 $6,398,168 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 129 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 130 INTERNAL SERVICE FUNDS The City has four 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 131 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2010 With Comparative Amounts For December 31, 2009 2010 2009 Assets: Current assets: Cash and investments $811,937 $ - Accrued interest receivable 4,106 6,766 Due from other governments 114,158 - Accounts receivable - - Prepaid items 75,805 245,935 Deposits receivable 31,000 31,000 Total current assets 1,037,006 283,701 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 1,037,006 283,701 Liabilities: Current liabilities: Accounts payable 29,446 14,329 Salaries payable 11,789 3,305 Accrued flex spending 28,062 34,362 Due to other governments 5,910 26,282 Contracts payable - - Due to other funds - 197,250 Compensated absences payable 2,379,784 2,258,671 Total current liabilities 2,454,991 2,534,199 Noncurrent liabilities: Compensated absences payable 1,019,908 968,002 Other postemployment benefits payable 992,616 673,620 Total noncurrent liabilities 2,012,524 1,641,622 Total liabilities 4,467,515 4,175,821 Net assets: Invested in capital assets, net of related debt - - Unrestricted (3,430,509)(3,892,120) Total net assets ($3,430,509)($3,892,120) 6100 Employee Flex Spending The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 132 Statement 23 2010 2009 2010 2009 2010 2009 $592,131 $557,833 $3,884,474 $2,949,287 $5,288,542 $3,507,120 2,226 2,985 455 12,093 6,787 21,844 - 93,908 34,500 - 148,658 93,908 - - - - - - 94,278 80,537 11,200 - 181,283 326,472 - - - - 31,000 31,000 688,635 735,263 3,930,629 2,961,380 5,656,270 3,980,344 - - 818,094 - 818,094 - - - 8,691,805 - 8,691,805 - - - 5,551,929 4,979,785 5,551,929 4,979,785 - - 6,331,798 6,335,322 6,331,798 6,335,322 - - - 5,422,433 - 5,422,433 0 0 21,393,626 16,737,540 21,393,626 16,737,540 - - (6,142,645) (5,173,744)(6,142,645) (5,173,744) 0 0 15,250,981 11,563,796 15,250,981 11,563,796 688,635 735,263 19,181,610 14,525,176 20,907,251 15,544,140 6,590 3,970 46,827 202,524 82,863 220,823 - - - - 11,789 3,305 - - - - 28,062 34,362 - - 2,761 1,179 8,671 27,461 - - 251,916 829,630 251,916 829,630 - - - - - 197,250 - - - - 2,379,784 2,258,671 6,590 3,970 301,504 1,033,333 2,763,085 3,571,502 - - - - 1,019,908 968,002 - - - - 992,616 673,620 0 0 0 0 2,012,524 1,641,622 6,590 3,970 301,504 1,033,333 4,775,609 5,213,124 - - 15,250,981 11,563,796 15,250,981 11,563,796 682,045 731,293 3,629,125 1,928,047 880,661 (1,232,780) $682,045 $731,293 $18,880,106 $13,491,843 $16,131,642 $10,331,016 Totals6200 Uninsured Loss 6400 Capital Replacement The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 133 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS For The Year Ended December 31, 2010 With Comparative Amounts For The Year Ended December 31, 2009 2010 2009 2010 2009 Operating revenues: Charges for services $ - $ - $ - $ - Other 51,409 41,687 66,089 97,895 Total operating revenues 51,409 41,687 66,089 97,895 Operating expenses: Personal services 618,144 569,958 12,648 13,660 Supplies - - - - Professional services 12,656 17,180 - - Insurance - - 81,971 951 Depreciation - - - - Other 83,053 78,983 2,723 175,651 Total operating expenses 713,853 666,121 97,342 190,262 Operating income (loss)(662,444) (624,434) (31,253) (92,367) Nonoperating revenues (expenses): Investment income 9,897 28,955 7,099 15,224 Property taxes - - - - Intergovernmental revenue 114,158 - - - Net gain on disposal of assets - - - - Total nonoperating revenues (expenses)124,055 28,955 7,099 15,224 Income (loss) before transfers (538,389) (595,479) (24,154) (77,143) Transfers in 1,000,000 300,000 - - Transfers out - - (25,094) (14,843) Total transfers 1,000,000 300,000 (25,094) (14,843) Change in net assets 461,611 (295,479) (49,248) (91,986) Net assets - January 1 (3,892,120) (3,596,641) 731,293 823,279 Net assets - December 31 ($3,430,509) ($3,892,120) $682,045 $731,293 6100 Employee Flex Spending 6200 Uninsured Loss The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 134 Statement 24 2010 2009 2010 2009 2010 2009 $ - $ - $626,983 $626,983 $626,983 $626,983 - - - 6,089 117,498 145,671 0 0 626,983 633,072 744,481 772,654 - - - - 630,792 583,618 - - 153,546 181,423 153,546 181,423 - - 144,695 152,922 157,351 170,102 - - - - 81,971 951 - - 1,087,929 984,996 1,087,929 984,996 - - 259,831 143,968 345,607 398,602 0 0 1,646,001 1,463,309 2,457,196 2,319,692 0 0 (1,019,018)(830,237) (1,712,715) (1,547,038) - - - 49,827 16,996 94,006 - - 338,300 - 338,300 - - - 493,375 - 607,533 - - - 26,553 91,148 26,553 91,148 0 0 858,228 140,975 989,382 185,154 - - (160,790)(689,262)(723,333) (1,361,884) - - 5,554,987 13,020,633 6,554,987 13,320,633 - (7,463,696)(5,934) - (31,028) (7,478,539) 0 (7,463,696)5,549,053 13,020,633 6,523,959 5,842,094 0 (7,463,696)5,388,263 12,331,371 5,800,626 4,480,210 - 7,463,696 13,491,843 1,160,472 10,331,016 5,850,806 $0 $0 $18,880,106 $13,491,843 $16,131,642 $10,331,016 Totals6300 Equipment Replacement 6400 Capital Replacement The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 135 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Year Ended December 31, 2010 With Comparative Amounts For The Year Ended December 31, 2009 2010 2009 2010 2009 Cash flows from operating activities: Receipts from interfund services provided ($114,158) $55,951 $93,908 $ - Other receipts 51,409 35 66,089 97,895 Payments to suppliers 69,166 (91,494) (95,815) (259,916) Payments to employees (123,945) (178,995) (12,648) (13,660) Net cash flows provided by (used in) operating activities (117,528) (214,503) 51,534 (175,681) Cash flows from noncapital financing activities: Transfers in 1,000,000 300,000 - - Transfers out - - (25,094) (14,843) Borrowing (payments) on interfund balances (197,250) (112,667) - - Intergovernmental receipts 114,158 2,183 - - Intergovernmental payments - - - (93,908) Net cash flows provided by (used in) noncapital financing activities 916,908 189,516 (25,094) (108,751) Cash flows from capital and related financing activities: 6100 Employee Flex Spending 6200 Uninsured Loss The accompanying notes are an integral part of these financial statements. 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 0000 Cash flows from investing activities: Investment income 12,557 23,883 7,858 17,371 Net increase (decrease) in cash and cash equivalents 811,937 (1,104) 34,298 (267,061) Cash and cash equivalents - January 1 - 1,104 557,833 824,894 Cash and cash equivalents - December 31 $811,937 $0 $592,131 $557,833 The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 136 Statement 25 Page 1 of 2 2010 2009 2010 2009 2010 2009 $ - $ - $592,483 $633,072 $572,233 $689,023 - - - - 117,498 97,930 - (39,468)(1,301,101) (292,109)(1,327,750) (682,987) - - - - (136,593) (192,655) 0 (39,468)(708,618)340,963 (774,612)(88,689) - - 5,554,987 7,662,487 6,554,987 7,962,487 - (2,105,550)(5,934) - (31,028) (2,120,393) - - - - (197,250) (112,667) - - 831,675 958 945,833 3,141 - (506) - - - (94,414) 0 (2,106,056)6,380,728 7,663,445 7,272,542 5,638,154 Totals6300 Equipment Replacement 6400 Capital Replacement The accompanying notes are an integral part of these financial statements. - - (4,776,745) (5,683,764) (4,776,745) (5,683,764) - - 28,184 91,148 28,184 91,148 0 0 (4,748,561) (5,592,616)(4,748,561) (5,592,616) - 13,219 11,638 40,369 32,053 94,842 0 (2,132,305)935,187 2,452,161 1,781,422 51,691 - 2,132,305 2,949,287 497,126 3,507,120 3,455,429 $0 $0 $3,884,474 $2,949,287 $5,288,542 $3,507,120 The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 137 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Year Ended December 31, 2010 With Comparative Amounts For The Year Ended December 31, 2009 2010 2009 2010 2009 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)($662,444) ($624,434) ($31,253) ($92,367) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation - - - - Changes in assets and liabilities: Decrease (increase) in: Accounts receivable (114,158) 14,299 93,908 - Prepaid items 170,130 12,690 (13,741) (9,541) Increase (decrease) in: Accounts payable (5,255) (8,021)2,620 (73,773) Contracts payable - - - - Accrued salaries payable 8,484 119 - - Accrued flex spending (6,300)(566) - - Compensated absences payable 173,019 69,476 - - Other postemployment benefits 318,996 321,934 - - Total adjustments 544,916 409,966 82,787 14,581 6100 Employee Flex Spending 6200 Uninsured Loss The accompanying notes are an integral part of these financial statements. Total adjustments 544,916 409,966 82,787 14,581 Net cash provided by (used in) operating activities ($117,528) ($214,468) $51,534 ($77,786) Supplemental schedule of noncash capital and related financing activities Capital assets purchased on account $ - $ - $ - $ - Transfer of capital assets from other funds $ - $ - $ - $ - Transfer of capital assets to other funds $ - $ - $ - $ - The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 138 Statement 25 Page 2 of 2 2010 2009 2010 2009 2010 2009 $ - $ - ($1,019,018) ($830,237) ($1,712,715) ($1,547,038) - - 1,087,929 984,996 1,087,929 984,996 - - (34,500) - (54,750)14,299 - - (11,200)4,026 145,189 7,175 - - (39,468)(154,115)182,178 (156,750)60,916 - - (577,714) - (577,714) - - - - - 8,484 119 - - - - (6,300)(566) - - - - 173,019 69,476 - - - - 318,996 321,934 0 (39,468)310,400 1,171,200 938,103 1,556,279 Totals6300 Equipment Replacement 6400 Capital Replacement The accompanying notes are an integral part of these financial statements. 0 (39,468)310,400 1,171,200 938,103 1,556,279 $0 ($39,468)($708,618) $340,963 ($774,612)$9,241 $ - $ - $ - $829,630 $ - $829,630 $ - $ - $ - $5,358,146 $ - $5,358,146 $ - ($5,358,146)$ - $ - $ - ($5,358,146) The accompanying notes are an integral part of these financial statements. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 139 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 140 GENERAL FUND The General Fund accounts for all financial resources except those required to be accounted for in another fund. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 141 CITY OF ST. LOUIS PARK, MINNESOTA BALANCE SHEET Statement 26 GENERAL FUND December 31, 2010 With Comparative Totals For December 31, 2009 2010 2009 Assets Cash and investments $12,437,785 $13,651,250 Accrued interest receivable 38,721 61,747 Due from other governments 140,618 137,711 Accounts receivable 19,353 16,084 Taxes receivable - unremitted 461,086 252,009 Taxes receivable - delinquent 469,313 483,131 Prepaid items 66,945 - Inventory 13,719 13,719 Total assets $13,647,540 $14,615,651 Liabilities and Fund Balance Liabilities: Accounts payable $423,519 $436,021 Salaries payable 733,303 662,837 Due to other governments 34,150 61,624 Contracts payable 45,046 14,429 Deposits payable 553,058 795,039 Deferred revenue 827,929 800,719 Total liabilities 2,617,005 2,770,669 Fund balance: Nonspendable 80,664 13,719 Restricted 425,967 558,487 Assigned 124,503 - Unassigned 10,399,401 11,272,776 Total fund balance 11,030,535 11,844,982 Total liabilities and fund balance $13,647,540 $14,615,651 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 142 CITY OF ST. LOUIS PARK, MINNESOTA SUMMARY FINANCIAL REPORT Statement 27 SCHEDULE OF REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTAL FUNDS For The Year Ended December 31, 2010 2010 2009 Percent Increase (Decrease) Revenues: Property taxes $22,667,190 $21,700,329 4.5% Tax increments 6,649,563 7,846,204 (15.3%) Franchise taxes 1,497,178 1,503,075 (0.4%) License and permits 2,359,716 2,786,032 (15.3%) Intergovernmental 11,879,601 3,867,795 207.1% Charges for services 4,051,971 4,228,179 (4.2%) Fines and forfeits 401,610 332,694 20.7% Special assessments 1,550,110 800,054 93.8% Interest on investments 612,098 1,358,170 (54.9%) Miscellaneous 3,050,231 2,615,062 16.6% Total revenues 54,719,268 47,037,594 16.3% Per capita 1,209 996 Expenditures: Current: General government 6,219,751 6,479,684 (4.0%) Public safety 11,771,246 11,949,612 (1.5%) Public works 15,624,494 4,637,289 236.9% P bli i f ti 387 459 445 146 (13 0%) Total Governmental Funds Public information 387,459 445,146 (13.0%) Culture and recreation 6,234,938 6,027,059 3.4% Housing and rehabilitation 4,144,378 1,550,264 167.3% Housing maintenance 241,170 128,099 88.3% Social economic development 4,720,638 6,241,123 (24.4%) Capital outlay: General government 222,381 - 0.0% Public safety 519,083 1,294 40014.6% Public works 3,955,145 7,568,969 (47.7%) Public information 92,086 295,924 (68.9%) Housing and rehabilitation 56,259 - 0.0% Culture and recreation 990,548 1,475,450 (32.9%) Social and economic development 470,581 972,365 (51.6%) Debt service: Principal 2,170,000 4,709,000 (53.9%) Interest 1,170,286 1,322,477 (11.5%) Bond issuance costs 453,288 - 0.0% Total expenditures 59,443,731 53,803,755 10.5% Per capita 1,314 1,139 Total bonds payable 32,130,000 14,905,000 115.6% Per capita 710 381 General Fund balance December 31, 2010 11,030,535 11,844,982 (6.9%) Per capita 244 251 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 143 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 144 III. STATISTICAL SECTION (UNAUDITED) Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 145 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 EIGHT FISCAL YEARS Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 146 Table 1 2006 2007 2008 2009 2010 $56,843,474 $74,883,912 $76,600,774 $89,252,994 $94,326,512 9,340,767 13,098,282 - 20,075,976 21,692,426 60,462,334 46,155,656 65,908,328 40,508,755 40,581,189 $126,646,575 $134,137,850 $142,509,102 $149,837,725 $156,600,127 $25,629,760 $25,644,428 $27,559,942 $23,977,469 $21,717,923 7,514,603 7,499,935 6,414,768 6,903,776 8,433,915 $33,144,363 $33,144,363 $33,974,710 $30,881,245 $30,151,838 $82,473,234 $100,528,340 $104,160,716 $113,230,463 $116,044,435 9,340,767 13,098,282 - 20,075,976 21,692,426 67,976,937 53,655,591 72,323,096 47,412,531 49,015,104 $159,790,938 $167,282,213 $176,483,812 $180,718,970 $186,751,965 Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 147 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 - - - 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 EIGHT FISCAL YEARS (accrual basis of accounting) Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 148 Table 2 Page 1 of 2 2006 2007 2008 2009 2010 $7,155,916 $8,251,341 $8,216,816 $8,167,355 $7,192,652 11,695,841 10,721,803 11,867,403 12,138,185 12,256,272 6,895,260 5,979,789 6,904,217 6,915,541 19,446,758 231,124 404,074 425,829 457,872 435,050 6,399,633 6,916,001 7,352,406 7,456,215 7,792,614 728,433 1,079,211 1,615,010 1,544,175 4,150,595 373,393 121,118 199,757 128,099 241,345 9,784,543 5,910,149 5,494,634 6,321,623 4,861,518 22,484 6,830 2,653 7,662 - 1,345,023 1,301,266 1,329,767 1,543,879 1,453,555 44,631,650 40,691,582 43,408,492 44,680,606 57,830,359 2,845,614 3,285,107 3,391,992 4,089,837 3,904,801 4,268,952 4,199,659 4,485,386 4,228,680 4,193,191 - - - - 2,116,949 2,029,302 2,019,595 2,135,677 2,125,540 - 1,032,410 1,088,170 1,172,199 1,287,202 1,325,803 402,683 1,151,751 315,664 151,708 - 10,578,961 11,744,282 11,500,918 11,882,967 11,540,744 $55,210,611 $52,435,864 $54,909,410 $56,563,573 $69,371,103 $936,199 $978,058 $955,811 $888,246 $1,065,209 3,049,369 2,977,475 4,282,699 2,958,383 2,898,634 432,932 1,483,824 380,452 2,292,287 601,890 1,886,153 2,409,625 2,121,505 2,083,015 1,959,556 456,088 527,536 507,163 562,930 8,833 - - - - - 32,456 202,110 173,960 184,236 588,757 - - - 318,134 - 7,703,241 3,908,485 3,581,092 2,664,563 1,735,926 6,290,881 2,113,560 2,822,683 2,131,755 14,908,522 20,787,319 14,600,673 14,825,365 14,083,549 23,767,327 $2,968,926 $3,461,301 $3,584,384 $4,294,962 $4,148,394 4,584,802 4,820,732 4,506,339 5,153,171 5,277,473 - - - - 2,719,376 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 41,057 68,959 51,322 16,140 - 263,181 208,814 966,053 167,604 103,342 209,277 - 1,040,384 - 2,890 11,361,361 12,429,021 14,025,795 13,789,989 14,081,267 $32,148,680 $27,029,694 $28,851,160 $27,873,538 $37,848,594 Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 149 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 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. STATISTICAL SECTION (UNAUDITED) CHANGES IN NET ASSETS LAST EIGHT FISCAL YEARS (accrual basis of accounting) Fiscal Year CITY OF ST. LOUIS PARK, MINNESOTA Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 150 Table 2 Page 2 of 2 2006 2007 2008 2009 2010 ($23,844,331)($26,090,909)($28,583,127)($30,597,057)($34,063,032) 755,400 684,739 2,524,877 1,907,022 2,540,523 ($23,088,931)($25,406,170)($26,058,250)($28,690,035)($31,522,509) $23,538,989 $26,163,519 $28,523,119 $29,512,631 $29,642,090 1,358,902 1,440,034 1,507,994 1,503,075 1,497,178 932,634 825,327 519,850 153,108 151,624 2,881,818 4,139,689 2,133,858 1,452,176 629,094 128,344 378,075 1,842,601 91,149 34,453 474,054 341,335 470,230 11,229 950,231 1,923,760 1,996,291 1,956,727 5,202,312 3,358,921 31,238,501 35,284,270 36,954,379 37,925,680 36,263,591 254,966 466,923 243,724 201,825 88,991 13,702 - 18,473 - - - - - - - (1,923,760)(1,996,291)(1,956,727)(5,202,312)(3,358,921) (1,655,092)(1,529,368)(1,694,530)(5,000,487)(3,269,930) $29,583,409 $33,754,902 $35,259,849 $32,925,193 $32,993,661 $7,394,170 $9,193,361 $8,371,252 $7,328,623 $2,200,559 (899,692)(844,629)830,347 (3,093,465)(729,407) (474,033)143,969 - - - $6,020,445 $8,492,701 $9,201,599 $4,235,158 $1,471,152 Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 151 - This page intentionally left blank - Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 152 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 3 GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST EIGHT 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 29,642,040 1,497,178 31,139,218 Note: Tax revenues by source are not available for years prior to 2003. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 153 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) FUND BALANCES OF GOVERNMENTAL FUNDS LAST ELEVEN FISCAL YEARS (modified accrual basis of accounting) 2000 2001 2002 2003 General fund Reserved $17,010 $17,295 $18,235 $34,889 Unreserved 6,604,300 7,087,439 7,519,959 6,799,827 Nonspendable - - - - Restricted - - - - Assigned - - - - Unassigned - - - - Total General fund $6,621,310 $7,104,734 $7,538,194 $6,834,716 All other governmental funds Reserved $9,465,828 $6,791,678 $6,799,583 $8,910,066 Unreserved, reported in: Special revenue funds 4,489,578 12,933,063 13,386,315 9,314,599 Capital projects funds 40,919,650 35,701,457 38,270,165 33,405,404 Other funds - - - 6,161,280 Nonspendable - - - - Restricted - - - - Committed - - - - Assigned - - - - Unassigned - - - - Total all other governmental funds $54,875,056 $55,426,198 $58,456,063 $57,791,349 Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 154 Table 4 2004 2005 2006 2007 2008 2009 2010 $42,267 $118,002 $104,774 $13,719 $29,368 $572,206 $ - 8,153,025 8,622,091 9,847,341 10,100,187 11,697,232 7,326,638 - - - - - - - 80,664 - - - - - - 425,967 - - - - - - 124,503 - - - - - - 10,399,401 $8,195,292 $8,740,093 $9,952,115 $10,113,906 $11,726,600 $7,898,844 $11,030,535 $9,548,264 $19,338,220 $9,276,305 $10,229,125 $10,610,175 $7,540,696 $ - 8,333,265 7,707,696 10,012,784 9,450,210 7,134,284 7,568,944 - 33,435,630 30,396,836 38,126,004 38,889,030 43,134,211 40,680,331 - 5,430,918 2,257,068 - - - - - - - - - - - 11,570,382 - - - - - - 32,296,848 - - - - - - 466,792 - - - - - - 25,151,409 - - - - - - (7,872,234) $56,748,077 $59,699,820 $57,415,093 $58,568,365 $60,878,670 $55,789,971 $61,613,197 Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 155 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST ELEVEN FISCAL YEARS (modified accrual basis of accounting) 2000 2001 2002 2003 Revenues Taxes $15,159,608 $15,558,802 $17,546,588 $17,963,805 Tax increments - - - - Franchise taxes Licenses and permits 1,819,529 2,011,051 2,140,905 2,027,353 Fines and forfeits 263,433 296,336 277,812 294,408 Intergovernmental 10,274,714 11,732,024 7,953,559 5,495,380 Charges for services 3,154,097 2,938,359 2,457,615 2,072,126 Special assessments 686,427 611,976 574,314 553,086 Investment earnings 3,826,118 3,361,612 2,181,428 1,189,713 Miscellaneous 2,049,244 6,340,007 5,715,376 2,277,480 Total revenues 37,233,170 42,850,167 38,847,597 31,873,351 Expenditures General government 4,496,483 4,946,186 5,162,084 5,267,243 Public safety 8,381,972 8,655,743 9,086,240 9,486,448 Public works 3,036,007 3,410,208 3,485,329 3,750,500 Public information 214,787 177,641 215,623 229,675 Culture and recreation 3,941,510 4,151,096 4,349,894 4,487,543 Housing and rehabilitation 300,366 476,153 527,330 327,960 Housing maintenance 38,554 117,538 313,320 127,941 Social and economic development 94,736 4,792,696 2,671,453 899,677 General services 775 - 2,102 7,976 Debt service Principal 1,970,000 14,735,000 9,320,000 2,990,000 Interest 2,274,523 1,918,241 2,027,384 1,715,827 Other charges 101,909 7,263 174,967 33,076 Capital outlay 10,972,669 14,268,482 10,367,806 8,333,251 Total expenditures 35,824,291 57,656,247 47,703,532 37,657,117 Excess (deficiency) of revenues over (under) expenditures 1,408,879 (14,806,080) (8,855,935) (5,783,766) Other financing sources (uses) Transfers in 5,360,476 20,921,064 15,620,099 5,778,074 Transfers out (5,223,807) (20,016,214) (8,478,100) (5,507,496) Principal paid on refunded bonds - - - - Refunding bonds issued - - - - Bonds issued 4,505,000 7,549,806 6,140,866 4,145,000 Premium on bonds issued - - - - Discount on bonds issued - - - - Redemption of refunded bonds - - - - Payments to refunded bond escrow agent - - - - Costs paid to refunded bond escrow agent - - - - Gain (loss) on sale of capital assets - - - - Total other financing sources (uses)4,641,669 8,454,656 13,282,865 4,415,578 Net change in fund balances $6,050,548 ($6,351,424) $4,426,930 ($1,368,188) Debt service as a percentage of noncapital expenditures 17.49% 38.40% 30.86% 16.16% Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 156 Table 5 2004 2005 2006 2007 2008 2009 2010 $20,146,562 $21,909,256 $19,416,738 $20,951,991 $21,563,302 $21,700,329 $22,667,190 - - 5,390,257 6,597,092 8,371,424 7,846,204 6,649,563 1,503,075 1,497,178 2,569,868 2,932,988 2,934,270 2,946,749 4,072,753 2,786,032 2,359,716 251,256 286,003 322,558 4,482,834 3,894,839 332,694 401,610 3,608,768 5,410,252 12,943,457 3,737,619 2,424,119 3,867,795 11,879,601 4,935,172 4,197,987 2,394,509 276,693 324,512 4,228,179 4,051,971 920,680 827,361 843,030 840,965 703,484 800,054 1,550,110 854,636 1,323,843 2,717,490 3,851,542 1,990,854 1,358,170 612,098 2,431,999 2,397,275 2,648,354 3,038,836 3,591,212 2,615,062 3,050,231 35,718,941 39,284,965 49,610,663 46,724,321 46,936,499 47,037,594 54,719,268 5,298,509 5,662,931 5,985,314 6,642,231 6,642,295 6,472,022 6,219,751 9,628,174 11,221,408 11,060,618 10,851,256 11,744,656 11,949,612 11,771,246 4,000,282 3,772,650 4,934,433 4,089,223 4,671,631 4,637,289 15,624,494 249,388 259,461 227,106 393,863 415,609 445,146 387,459 4,786,730 5,271,726 6,095,959 7,274,375 6,213,945 6,027,059 6,234,938 285,019 397,834 739,391 688,062 1,621,099 1,550,264 4,144,378 229,861 161,558 373,393 121,118 199,757 128,099 241,170 791,110 1,405,434 9,124,251 5,822,842 5,162,698 6,241,123 4,720,638 1,596 7,626 22,484 6,830 2,653 7,662 - 3,155,000 3,680,000 6,360,000 4,065,000 4,485,000 4,709,000 2,170,000 1,693,689 1,626,517 1,450,460 1,304,565 1,365,484 1,322,477 1,170,286 - 59,589 - - - - 453,288 7,382,608 11,206,131 4,567,251 5,804,342 9,998,748 10,314,002 6,306,083 37,501,966 44,732,865 50,940,660 47,063,707 52,523,575 53,803,755 59,443,731 (1,783,025) (5,447,900) (1,329,997) (339,386) (5,587,076) (6,766,161) (4,724,463) 10,608,768 9,650,253 6,432,713 8,383,989 11,129,934 9,939,299 11,809,353 (8,757,973) (8,716,751) (5,480,804) (7,008,202) (9,233,136) (10,579,081) (14,974,391) (7,295,000) - - - - - - - 2,370,000 - - - - 3,615,000 7,490,000 3,705,000 - - 5,490,000 2,000,000 16,130,000 - 151,602 - - - 10,202 2,792 (77,962)(5,746) - - - - - - - - - - - (1,825,000) - - - - - (6,045,000) 4,430,000 - - - - - (199,425) (4,164,000) 132,496 1,566,691 (220,584) 278,662 2,123,277 - 27,412 2,100,329 8,721,049 731,325 1,654,449 9,510,075 (4,874,005) 15,051,166 $317,304 $3,273,149 ($598,672) $1,315,063 $3,922,999 ($11,640,166) $10,326,703 16.10%16.01%16.84%13.01%13.76%13.87%7.14% Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 157 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 2001 2002 2003 2004 Population 44,126 44,270 44,302 44,896 Real Property Total assessed/tax capacity value $42,290,304 $44,639,956 $46,957,116 $51,772,756 Less tax increment districts -(3,352,152) (3,792,061) (4,313,399) (4,665,583) Area-wide allocation (net)(1,516,683) (1,477,254) (1,349,096) (703,750) Net assessed/tax capacity value $38,938,152 $40,847,895 $42,643,717 $47,107,173 Estimated market value $3,388,855,800 $3,805,624,900 $4,121,540,000 $4,828,585,300 Personal Property Assessed/tax capacity value $409,514 $420,338 $436,947 $456,914 Estimated market value $20,686,500 $21,270,900 $22,114,100 $23,123,200 Total Real and Personal Property Assessed/tax capacity value $37,837,892 $39,790,979 $41,731,568 $46,860,340 Estimated market value $3,409,542,300 $3,826,895,800 $4,143,654,100 $4,851,708,500 Tax Capacity Rate 35.0% 35.9% 34.8% 34.8% Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 158 Table 6 2005 2006 2007 2008 2009 2010 44,511 44,422 43,145 47,198 47,221 45,250 $56,737,869 $62,912,413 $68,025,921 $68,006,453 $69,704,858 $68,386,268 (5,211,867) (6,335,246) (7,644,566)(7,639,464) (8,276,993) (6,976,791) (1,153,662) (1,186,353) (1,498,263)(1,498,263) (1,635,724) (1,231,482) $50,372,340 $55,390,814 $58,883,092 $58,868,726 $59,792,141 $60,177,995 $4,841,195,800 $5,232,595,500 $5,553,715,600 $5,552,520,000 $5,633,028,200 $5,550,563,700 $464,571 $489,063 $458,627 $458,627 $434,825 $428,760 $23,527,400 $24,807,500 $23,263,700 $23,263,700 $22,006,100 $21,712,100 $50,836,911 $55,879,877 $59,341,719 $59,327,353 $60,226,966 $60,606,755 $4,864,723,200 $5,257,403,000 $5,576,979,300 $5,575,783,700 $5,655,034,300 $5,572,275,800 35.2% 32.9% 32.9% 34.8% 36.6% 37.1% Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 159 STATISTICAL SECTION (UNAUDITED)Table 7 2005 2006 2007 2008 2009 2010 Operating Rate 35.571 34.164 32.344 32.504 34.402 34.869 Debt Service Rate 1.810 2.180 2.394 2.255 2.265 2.247 Total City of St. Louis Park 37.381 36.344 34.738 34.759 36.667 37.116 County Operating Rate 44.172 41.016 39.11 38.571 40.413 42.640 School District Operating Rate 9.481 8.665 11.704 8.691 9.08 9.295 Debt Service Rate 13.281 11.912 11.781 10.889 11.257 11.803 Other Taxing Districts St. Louis Park HRA Levy 1.298 1.259 1.336 1.344 1.759 1.718 Metro Mosquito Control 0.564 0.509 0.499 0.486 0.489 0.461 Metro Council 1.132 0.873 0.877 0.812 0.817 0.793 City of St. Louis Park Overlapping Rates CITY OF ST. LOUIS PARK, MINNESOTA PROPERTY TAX RATES - DIRECT AND OVERLAPING GOVERNMENTS LAST SIX FISCAL YEARS Year Metro Transit Debt 1.608 1.542 1.295 1.264 1.273 1.366 Hennepin County HRA - - - - - 0.241 Hennepin Parks 2.667 2.830 3.068 3.137 3.334 3.499 Park Museum 0.775 0.685 0.700 0.719 0.771 0.778 HC Regional Railroad Authority 0.636 0.559 0.871 0.979 0.470 1.000 Referendum Market Value Based Rate - - - - - 0.152 Watershed 1.276 1.072 1.121 1.404 1.489 1.511 Total 114.271 107.266 107.100 103.055 107.819 112.373 Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 160 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)$67,660,000 1 1.21% $40,557,000 2 0.73% Thomson Reuters Property Tax Service 59,146,000 2 1.06% - - 0.00% AEW VIF II Acquisition LLC 40,000,000 3 0.72% - - 0.00% Parkdale Property LLC 39,273,000 4 0.70% - - 0.00% Park Nicollet 38,501,300 5 0.69% 33,026,900 5 0.59% Target (formerly Dayton Hudson)17,959,000 6 0.32% - - 0.00% General Growth/Knollwood Co.16,425,000 7 0.29% 17,000,000 6 0.31% Park Glen 25,520,000 8 0.46% 18,300,000 8 0.33% Camerata LLC 23,725,600 9 0.43% - - 0.00% Xcel Energy (formerly Northern States Power)14,244,500 10 0.26% 12,990,000 9 0.23% Interchange Investors (formerly WHIOP Real Estate Ltd. Partnership) - - 0.00% 83,000,000 1 1.49% Parkdale Associates - - 0.00% 37,590,400 3 0.67% Park Place OPCO LLC - - 0.00% 37,550,000 4 0.67% Deloitte& Touche LLP - - 0.00% 14,458,500 7 0.26% P k N i l B ildi C 0 00%12 115 000 10 0 22% Taxpayer 2010 2001 Park National Building Corp - - 0.00% 12,115,000 10 0.22% Total $342,454,400 6.15% $306,587,800 5.50% Total taxable assessed value $5,572,275,800 $3,409,542,300 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 161 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 2001 $13,252,491 $13,087,658 98.76% $13,252,491 100.00% 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% Collected Within the Fiscal Year of the Levy Total Collections to Date Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 162 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 10 RATIOS OF OUTSTANDING DEBT BY TYPE LAST SIX FISCAL YEARS General Total Percentage Fiscal Obligation Tax Increment Capital Revenue Notes Primary of Personal Per Year Bonds Bonds Leases Bonds Payable Government Income (1) Capita (1) 2005 $13,335,000 $22,795,000 $15,000 $2,550,000 $29,082 $38,724,082 2.60% 871.73$ 2006 12,645,000 17,125,000 7,500 2,365,000 1,791 32,144,291 2.10% 710.91 2007 11,805,000 13,900,000 - 5,835,000 - 31,540,000 1.96% 668.25 2008 10,715,000 15,995,000 - 9,570,000 - 36,280,000 2.25% 768.68 2009 9,590,000 8,405,000 - 9,185,000 - 27,180,000 1.54% 575.59 2010 26,335,000 7,410,000 - 11,335,000 - 45,080,000 2.71% 996.24 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. (1) See the Schedule of Demographic Statistics on page 160 for personal income and population data. Governmental Activities Business Type Activities Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 163 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 11 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST SIX 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% 520.87 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 150 for property value data. (2) Population data can be found in the Schedule of Demographic Statistics on page 160. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 164 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 12 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF DECEMBER 31, 2010 Share of Debt Percentage Overlapping Outstanding (1) Applicable (2) Debt Overlapping Debt: Hennepin County $718,795,000 3.78%$27,170,451 St. Louis Park Independent School District 55,015,000 99.50% 54,739,925 Hopkins Independent School District 127,545,000 3.23% 4,119,704 Edina Independent School District 79,415,000 0.07% 55,591 Hennepin County Suburban Park District 74,080,000 5.22% 3,866,976 Hennepin Regional RR Authority 41,755,000 3.78% 1,578,340 Metropolitan Council 167,600,000 1.71% 2,865,960 Subtotal of Overlapping Debt: 1,264,205,000 94,396,946 Direct Debt: City of St. Louis Park 26,335,000 100.00%26,335,000 Total of Direct and Overlapping Debt:$1,290,540,000 $120,731,946 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 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 165 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 13 LEGAL DEBT MARGIN INFORMATION LAST FIVE FISCAL YEARS 2006 2007 2008 2009 2010 Debt Limit $105,148,060 $111,539,586 $167,273,511 $169,651,029 $167,168,274 Total Net Debt Applicable to Limit 3,497,669 3,127,988 2,747,414 2,880,000 15,535,000 Legal Debt Margin $101,650,391 $108,411,598 $164,526,097 $166,771,029 $151,633,274 Total Net Debt Applicable to the Limit as a percentage of Debt Limit 3.33% 2.80% 1.64% 1.70% 9.29% Legal Debt Margin Calculation for Fiscal Year Estimated Taxable Market Value $5,257,403,000 $5,576,979,300 $5,575,783,700 $5,655,034,300 $5,572,275,800 Debt Limit (3% of taxable market value) $105,148,060 $111,539,586 $167,273,511 $169,651,029 $167,168,274 Debt applicable to limit: Total Bonded Debt 32,135,000 31,540,000 36,280,000 27,180,000 45,080,000 Less: Amount Set Aside for Repayment of G.O. Bonds (207,331) (452,012) (487,586) G.O. Revenue Bonds (2,365,000) (5,835,000) (9,570,000) (9,185,000) (11,335,000) G.O. Improvement Bonds (8,940,000) (8,225,000) (7,480,000) (6,710,000) (10,800,000) G.O. Tax Increment Bonds (17,125,000) (13,900,000) (15,995,000) (8,405,000) (7,410,000) Total Net Debt Applicable to Limit:3,497,669 3,127,988 2,747,414 2,880,000 15,535,000 Fiscal Year Legal Debt Margin:$101,650,391 $108,411,598 $164,526,097 $166,771,029 $151,633,274 Note A: Under State of Minnesota law, the City of St. Louis Park's outstanding general obligation debt should not exceed 3 percent of the market value of the taxable property. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations. Note B: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 166 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 14 PLEDGED REVENUE BOND COVERAGE LAST FIVE 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% Notes: 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 and Storm Water charges and other includes investment earnings. Operating expenses do not include interest, depreciation or transfers out. Debt Service Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 167 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) 2001 44,126 $1,278,330 $28,970 35.7 4,175 2.7% 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% Source: (1) Federal Census Bureau data (2) St. Louis Park School District (3) Minnesota Department of Employment and Economic Development Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 168 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 5,879 1 22.1 % 6,831 1 24.7 % St. Louis Park Public Schools 688 2 2.6 816 4 2.9 Sholom Home West 659 3 2.5 222 0.8 Knollwood Mall 600 4 2.3 - Super Target 595 5 2.2 250 10 0.9 MoneyGram International (formerly Travelers Express)518 6 1.9 840 3 3.0 Japs-Olson Company 508 7 1.9 690 6 2.5 Byerly's 350 8 1.3 400 8 1.4 Miracle Mile Shopping Center 350 9 1.3 - St. Louis Park, City of 288 10 1.1 296 9 1.1 Allied Interstate - - 893 2 3.2 Allianz Life - - 700 5 2.5 Nestle Nutrition (formerly Novartis Nutrition)- - 471 7 1.7 Total 10,435 39.28 % 12,409 44.86 % Employer Employment Percentage of Total City Percentage of Total City Employment Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 169 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 17 FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION LAST SIX FISCAL YEARS 2005 2006 2007 2008 2009 2010 Function General government 115.0 119.1 123.0 122.5 114.5 105.5 Public safety Police Officers 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 Fire Firefighters and officers 25.0 25.0 25.0 25.0 25.0 25.0 Public Works 33.0 32.7 32.0 32.0 32.0 32.0 Water 7.8 7.8 10.3 11.4 11.4 9.9 Sewer 6.7 5.7 3.7 2.7 2.7 3.6 Refuse 0.7 0.7 0.7 1.8 1.8 1.8 Storm Water 2.0 2.0 2.6 2.6 2.6 3.3 Total Employees 259.7 263.5 267.8 267.5 258.0 252.0 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. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 170 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 18 OPERATING INDICATORS BY FUNCTION LAST SIX FISCAL YEARS 2005 2006 2007 2008 2009 2010 Police Medical calls 2,660 2,876 2,881 3,153 3,110 3,188 Traffic stops 1,959 2,510 1,981 2,724 2,462 4,236 Other 23,508 25,394 24,996 24,412 22,562 21,355 Fire Inspections/Medical/All other calls 3,970 4,109 4,141 4,357 4,429 3,893 Fire calls - residential 38 67 45 52 82 50 Fire calls - structural 11 16 16 9 14 57 Fire calls - other 60 58 71 46 68 37 Cable TV Hours of new programming 121 124 94 294 250 456 Inspections Permits 8,092 8,527 8,616 13,687 8,895 8,397 Inspections 18,316 18,916 17,797 24,022 27,332 20,204 Culture and recreation Aquatic park attendance 88,491 75,380 80,347 76,218 67,617 69,825 Hours of ice time 6,546 6,508 6,574 6,787 6,354 6,493 Water Gallons of water production (billions)2.0 2.2 2.3 2.4 2.4 2.1 Average watermain breaks per year 30 30 30 30 30 30 Public Works Snowplowing hours 1,236 1,165 1,556 1,672 2,454 3,216 Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. Fiscal Year Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 171 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 19 CAPITAL ASSET STATISTICS BY FUNCTION LAST SIX FISCAL YEARS 2005 2006 2007 2008 2009 2010 Function Public safety Police Stations 1 1 1 1 1 1 Patrol units 22 25 26 26 26 26 Fire Stations 2 2 2 2 2 2 Vehicles 10 13 13 13 13 13 Fire hydrants 1,699 1,699 1,699 1,699 1699 1699 Culture and recreation Parks 51 51 51 53 53 53 Trails 10 10 10 10 10 10 Streets Lane miles of streets 290 290 290 290 310 311 Miles of streets 117 117 117 117 155 156 Water Fiscal Year Water Wells 11 11 11 11 11 11 Water treatment plants 6 6 6 6 6 6 Miles of watermain 148 148 148 148 148 149 Sanitary Sewer Lift stations 23 23 23 23 23 23 Miles of sewermain 138 138 138 138 138 139 Storm Sewer Ponds and lakes 26 26 26 26 26 52 Catch basins 2,943 2,943 2,943 2,943 3154 3731 Note: Fiscal Year 2005 was the first year implementing GASB Statement No. 44. Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 172 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 173 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 174 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 175 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 176 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 177 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 178 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 179 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 180 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 181 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 182 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 183 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & Discussion Page 184 Click to edit Master title styleyCity of St. Louis Park, Minnesota2010 Audit ReviewAugust 15, 2011David J. Mol, CPAAndrew Hering, CPACopyright ©2011 HLB Tautges Redpath, Ltd.Copyright ©2011 HLB Tautges Redpath, Ltd.1514529Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 185 Reports Issued by Auditor•OpinionontheFairPresentationoftheFinancialStatementspy•Opinion on the Fair Presentation of the Financial Statements•Report on Internal Controls•Reporton Compliancewith MinnesotalegalComplianceAudit•Report on Compliance with Minnesota legal Compliance Audit Guide for Political Subdivisions•Reporton CompliancewithRequirementsofFederalProgramsReport on Compliance with Requirements of Federal Programs•Communication to Those Charged with GovernanceCopyright ©2011 HLB Tautges Redpath, Ltd.2Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 186 Opinion on Financial Statements•Whatdidwedo?pWhat did we do?–Audited the financial statements, which are the responsibility of management.•Howdidwedo it?•How did we do it?–GAAS and GAGAS–Plan and perform the audit to obtain reasonable assurance about whetherthefinancialstatementsare freeofmaterialmisstatementwhether the financial statements are free of material misstatement.•What is the result?–The financial statements present fairly, in all material respects, the fi i liif hCii dihiddfinancial position of the City in accordance with accounting standards. In other words, a “clean opinion”.Copyright ©2011 HLB Tautges Redpath, Ltd.3Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 187 GFOA Award for Excellence in Financial ReportingReportingCity of St. Louis ParkCopyright ©2011 HLB Tautges Redpath, Ltd.4Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 188 Report on Internal Controls•What did we do?p–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 narratives of controls on each major class of transaction and account balance.–Perform walkthroughs and other tests to determine adherence to controls in place and effectiveness.•What is the result?–Two items noted•Audit adjustments•Approval of journal entries, bank reconciliations and other transactionsCopyright ©2011 HLB Tautges Redpath, Ltd.5Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 189 Report on Compliance with Minnesota LegalComplianceAuditGuide•What did we do?Fll dhdiidbli h db h Offi f h SAdiLegal Compliance Audit Guide–Followed the audit guide published by the Office of the State Auditor. The guide consists of seven sections:•Depositories of public funds and investmentsCflif i•Conflicts of interest•Public Indebtedness•Contracting bid laws•Claims and disbursements•Miscellaneous provisions•Tax increment•How did we do it?–Select sample of transactions to test for compliance with statutory provisions.provisions.•What is the result?–No findings of noncompliance.Copyright ©2011 HLB Tautges Redpath, Ltd.6Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 190 Report on Compliance with Federal ProgramRequirements (SingleAudit)•What did we do?Program Requirements (Single Audit)–Performed compliance audit of selected federal programs•Required when expenditure of federal monies exceed $500K (City expended$7 9Min2010)expended $7.9M in 2010)•One major federal program for 2010 (Highway Planning and Construction –Wooddale and Hwy 7)Hdiddit?•How did we do it?–Follow standards published by U.S. Government Accountability Office (GAO).–Determine applicable compliance requirements.–Select sample of transactions to test for compliance with federal programrequirementsprogram requirements.•What is the result?–No findings of noncompliance reported for 2010.Copyright ©2011 HLB Tautges Redpath, Ltd.7Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 191 Communication to Those Charged With Governance•Accountingpoliciesusedand/orchangedbytheCity.GovernanceAccounting policies used and/or changed by the City.–GASB Statement No. 51 on Intangible assets and GASB Statement No. 54 on Fund Balance•Accountingestimatesinthefinancialstatements•Accounting estimates in the financial statements.–OPEB obligation•Financial statement misstatements identified during the audit.–See internal control comment•No disagreements with management.Copyright ©2011 HLB Tautges Redpath, Ltd.8Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 192 2010 Financial Summaryy•SeeseparatehandoutSee separate handoutCopyright ©2011 HLB Tautges Redpath, Ltd.9Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 193 Constraints on Fund BalanceFund Nonspendable Restricted Committed Assigned Unassigned TotalGeneral fund80,664 425,967 ‐ 124,503 10,399,401 11,030,535 Parks and Recreation 250,008 ‐ ‐ 703,332 ‐ 953,340 HousingRehab2 813 817(1 721 219)1 092 598Housing Rehab2,813,817 ‐ ‐ ‐ (1,721,219) 1,092,598 Debt service funds‐ 6,141,651 ‐ ‐ ‐ 6,141,651 PIR234,975 ‐ ‐ 3,845,224 ‐ 4,080,199 Street capital projects‐ ‐ ‐ ‐ (2,430,281) (2,430,281) Development EDA 7,866,929 ‐ ‐ 16,125,630 ‐ 23,992,559 p,,,,,,Redevelopment District‐ 8,637,400 ‐ ‐ (3,708,053) 4,929,347 Cable Television‐ 475,062 466,792 376,994 ‐ 1,318,848 Community Development 404,653 ‐ ‐ ‐ (12,681) 391,972 Special Service Districts‐ ‐ ‐ 267,027 ‐ 267,027 Fire Station Bonds‐ 11,986,027 ‐ 7,351 ‐ 11,993,378 Park Improvement‐ ‐ ‐ 2,275,754 ‐ 2,275,754 Pavement Mgmt‐ ‐ ‐ 1,550,097 ‐ 1,550,097 Police and Fire Pensions‐ 5,056,708 ‐ ‐ ‐ 5,056,708 Total11 651 04632 722 815466 79225 275 9122 527 16772 643 732 Total11,651,046 32,722,815 466,792 25,275,912 2,527,167 72,643,732 Copyright ©2011 HLB Tautges Redpath, Ltd.10Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 194 General Fund Working Capital Needsg p$14,000,000 GldhlChl$10 000 000$12,000,000 General Fund Monthly Cash Balances$8,000,000 $10,000,000 $4,000,000 $6,000,000 $2,000,000 $ ‐Copyright ©2011 HLB Tautges Redpath, Ltd.11Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 195 History of General Fund Balancey$10,000,000 $12,000,000 $8,000,000 $4,000,000 $6,000,000 $2,000,000 $ ‐2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Copyright ©2011 HLB Tautges Redpath, Ltd.12Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 196 Debt Service FundsFundDebt Balance at Payable atSource ofBond Issue12/31/10 12/31/10RepaymentTax Increment Bonds:Tax Increment Refunding Bonds, Series 2004A $ ‐ $1,415,000 Tax increment (Trunk Highway 7)Tax Increment Bonds , Series 2008B 125,343 5,490,000 Tax incrementTax Increment Refunding Bonds, Series 2009A ‐ 505,000 Tax increment (Oak Park Village)General Obligation Bonds:G.O. Bonds, Series 2000A (Acq. and renov. of multi‐family housing developmen3,850,469 3,770,000 Escrow accountG.O. Bonds, Series 1999A 376,975 310,000 Property taxes annual levy ofG.O. Bonds, Series 2005A (Aquatic Park Expansion) 554,847 2,510,000 Property taxes approx. $1,350,000G.O. Bonds, Series 2010A (Sunset Ridge) 1,092,598 3,105,000 Housing Improvement FeeG.O. Refunding Bonds, Series 2010B (Refunded the 2003 bonds) 558,813 1,845,000 Property taxesG.O. Refunding Bonds, Series 2010C ( Refunds 2000A Louisiana Court Project) 121,105 1,770,000 Loan payments from DeveloperG.O. Bonds, Series 2010D (Fire Station) 387,862 13,025,000 Property taxes and federal rebateTotal $7,068,012 $33,745,000Copyright ©2011 HLB Tautges Redpath, Ltd.13Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 197 Water Utilityy$9 000 000$7 000 000$8,000,000 $9,000,000 Water Operating Revenue & Expense$5 000 000$6,000,000 $7,000,000 Transfer OutDepreciation$3 000 000$4,000,000 $5,000,000 DepreciationInterestAll Other ExpensesPersonal ServicesOperating Revenue$2,000,000 $3,000,000 $0 $1,000,000 2007200820092010Copyright ©2011 HLB Tautges Redpath, Ltd.14Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 198 Sewer Utilityy$6 000 000$5,000,000 $6,000,000 Sewer OperatingRevenue & $4,000,000 Transfer OutDepreciation$2,000,000 $3,000,000 Personal ServicesAll Other ExpensesMCESOperating Revenue$1,000,000 $0 2007 2008 2009 2010Copyright ©2011 HLB Tautges Redpath, Ltd.15Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 199 Solid Waste$4,000,000 $3 000 000$3,500,000 $, ,Solid Waste$2,500,000 $3,000,000 Transfer OutOperating $1,500,000 $2,000,000 pgExpenditures$500,000 $1,000,000 $0 2007 2008 2009 2010Copyright ©2011 HLB Tautges Redpath, Ltd.16Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 200 Financial Trends$150 60(In Millions)$110 $130 5037.38136.34434.73834.75936.66737.11641.459$70$90 3040$30$50 $70 2030Tax RateTax CapacityHistory of Tax Capacity and $10 $30 10Tax Rate($10)02005 2006 2007 2008 2009 2010 2011Copyright ©2011 HLB Tautges Redpath, Ltd.17Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 201 Continued Financial Challengesg•St.LouisParkisanetcontributortothefiscaldisparitiespool.St. Louis Park is a net contributor to the fiscal disparities pool.–Tax capacity contributed to the pool $8,310,106–Tax capacity distributed from the pool $5,534,623–Net contribution$2,775,483$, ,–Net contribution is 4.2% of city’s tax capacity•State aid unallotments.–TheunallotmentforMarketValueHomesteadCreditwas$638 916for2009andThe unallotment for Market Value Homestead Credit was $638,916 for 2009 and $667,539 for 2010 and estimated $667,539 for 2011.–City has not received LGA since 2003.Copyright ©2011 HLB Tautges Redpath, Ltd.18Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 202 City of St. Louis Park, MinnesotaSummary Financial ActivityFor the Year Ended December 31, 2010Revenue Expenditures Interfund Increase in Fund Balance/ CashCAFR and Other and Other Transfers Fund Balance/ Net Assets BalanceFund page Sources Uses (Net) Net Assets 12/31/10 12/31/10 Comments1General36 $20,791,048 $22,393,730 $788,235 ($814,447) $11,030,535 $12,437,785$1M transferred to Flex Spending Internal Serrvice Fund, $550K transferred to Park Improvement Fund2Special Revenue:3 Parks and Recreation 36 6,103,436 6,063,029 42,384 82,791 953,340 839,6484 Housing Rehabilitation 36 4,860,002 4,350,680 (185,255) 324,067 1,092,598 146,6265 Cable Television 101 605,102 479,545 (159,715) (34,158) 1,318,848 1,180,1226 Community Development 101 246,792 241,170 (7,227) (1,605) 391,972 - 7 Special Service Districts 101 168,165 239,262 - (71,097) 267,027 334,3118Debt Service:9 Hoigaard's 111 4,264,064 4,707,653 487,135 43,546 - - 10 Hoigaard' 2010 A & B TIF 111 166,247 10 - 166,237 166,237 165,64711 2010D G.O. Fire Station Bond 110 387,870 8 - 387,862 387,862 387,40312 2009A G. O. Tax Increment Refunding 111 - 1,021,763 1,016,616 (5,147) - Received transfer from EDA (HRA levy fund)13 2008B G. O. Tax Increment Bond 111 1,321 224,570 - (223,249) 125,343 124,89814 2005A G. O. Bond 111 499,939 468,626 - 31,313 554,847 553,46815 2004 G. O. Tax Increment Refunding (EDA) 111 - 51,664 43,958 (7,706) - - Received transfer from EDA (HRA levy fund)16 2003 G. O. Bond 110 2,367,775 2,317,438 - 50,337 558,813 559,43717 2000 G. O. Bond Reserve 110 146 - (204,041) (203,895) 121,105 121,10518 2000 G. O. Bond 110 3,853,597 392,895 204,041 3,664,743 3,850,469 3,850,469 Bonds refunded on 2/1/11 with proceeds of 2010C19 1999 G. O. Bond 110 340,843 310,595 - 30,248 376,975 376,04020Capital Project:21 Permanent Improvement Revolving 37 327,631 69,422 (4,946,657) (4,688,448) 4,080,199 1,526,505 $4.3M transferred to CRF for MSC expansion project22 Streets Capital Projects 37 10,080,237 13,993,950 6,453,913 2,540,200 (2,430,281) - Received $4.055M transfer from EDA for Elmwood-Wooddale project23 Development EDA 37 1,080,231 1,308,150 (410,344) (638,263) 23,992,559 16,033,98424 Police and Fire Pension 105 51,480 1,504 (234,000) (184,024) 5,056,708 5,038,69125 Fire Station Bonds 36 12,644,973 651,345 - 11,993,628 11,993,378 12,210,98926 Park Improvement 105 893,210 1,162,457 557,227 287,980 2,275,754 2,322,988 Received $550K transfer from General Fund27 Pavement Management 105 1,347,427 1,339,458 - 7,969 1,550,097 1,454,58228 Redevelopment District (EDA) 37 7,842,936 3,643,807 (6,611,308) (2,412,179) 4,929,347 7,949,908 see lines 12, 15 and 2229Enterprise:30 Water Utility 42 4,148,394 3,835,323 (938,086) (625,015) 6,761,855 74,20231 Sewer Utility 42 5,309,350 4,138,448 (764,244) 406,658 7,074,441 2,142,59932 Solid Waste 42 2,859,785 2,115,261 (1,288,100) (543,576) 2,247,550 1,408,67233 Storm Water Utility 43 1,852,729 1,303,736 (368,491) 180,502 14,215,968 2,459,64534 Wireless 43 - - - - - - 35Internal Service:36 Employee Flex Spending 126 175,464 713,853 1,000,000 461,611 (3,430,509) 811,937 $1M transferred to CRF for MSC expansion project37 Uninsured Loss 126 73,188 97,342 (25,094) (49,248) 682,045 592,13138 Equipment Replacement 127 - - - - - - 39 Capital Replacement 127 1,485,211 1,646,001 5,549,053 5,388,263 18,880,106 3,884,474 see lines 21 and 36 Total $94,828,593 $79,282,695 $0 $15,545,898 $119,075,188 $78,988,266Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 203 City of St. Louis Park, MinnesotaSummary Financial ActivityFor the Year Ended December 31, 2010Revenue Expenditures Interfund Increase in Fund Balance/ CashCAFR and Other and Other Transfers Fund Balance/ Net Assets BalanceFund page Sources Uses (Net) Net Assets 12/31/10 12/31/10 CommentsGovernmental78,924,472 65,432,731 (3,165,038) 10,326,703 72,643,732 67,614,606Proprietary14,170,258 11,392,768 (3,358,921) (581,431) 30,299,814 6,085,118ISF1,733,863 2,457,196 6,523,959 5,800,626 16,131,642 5,288,542Check0 0 0 0 0 0 Special Study Session Meeting of August 15, 2011 (Item No. 1) Subject: 2010 Financial Statements – Auditors Presentation & DiscussionPage 204 Meeting Date: August 15, 2011 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: 2010 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 Comprehensive Annual Financial Report (CAFR), Schedule of Expenditures of Federal Awards, Audit Review, and Summary Financial Information for the year ended December 31, 2010. POLICY CONSIDERATION: Is the City Council comfortable with the information contained in the Comprehensive Annual Financial Report (CAFR), Schedule of Expenditures of Federal Awards, 2010 Audit Review, and Summary Financial Information for the year ended December 31, 2010 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, 2010. 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 27 consecutive years. FINANCIAL OR BUDGET CONSIDERATION: This report shows the City of St. Louis Park remains in strong financial condition. VISION CONSIDERATION: Not applicable Attachments: 2010 Comprehensive Annual Financial Report* 2010 Schedule of Federal Awards* 2010 Audit Review* 2010 Summary Financial Information* (*See related Special Study Session Report for attachments.) Prepared by: Brian A. Swanson, Controller Approved by: Tom Harmening, City Manager Meeting Date: August 15, 2011 Agenda Item #: 3a UNOFFICIAL MINUTES SPECIAL CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA JULY 25, 2011 1. Call to Order Mayor Jacobs called the meeting to order at 6:30 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Susan Sanger, and Sue Santa. Councilmembers absent: Paul Omodt, Anne Mavity and Julia Ross. (Omodt and Mavity participated by phone.) Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), Community Development Director (Mr. Locke), and Planning & Zoning Supervisor (Ms. McMonigal). 1a. Roll Call 2. Closed Executive Session 2a. The City Council met in closed executive session with the City Attorney to discuss confidential litigation strategy relating to a City appeal to the Minnesota Court of Appeals, as an aggrieved party, of the administrative decision by the Minnesota Department of Transportation (MnDOT) making a “Negative Declaration Regarding the Need for an Environmental Impact Statement for the MN&S Freight Rail Study in St. Louis Park and Minneapolis, Hennepin County, Minnesota.” 3. Adjournment The meeting adjourned at 8:10 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: August 15, 2011 Agenda Item #: 3b UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA JULY 25, 2011 The meeting convened at 8:19 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Susan Sanger, and Sue Santa. Councilmembers absent: Anne Mavity, Paul Omodt, and Julia Ross. Staff present: City Manager (Mr. Harmening), Housing Supervisor (Ms. Schnitker), Director of Community Development (Mr. Locke), and Recording Secretary (Ms. Hughes). Guest: Ms. Courtney Whited, (Prism). 1. Future Study Session Agenda Planning – August 8 and August 15, 2011 Mr. Harmening presented the proposed study session agenda for August 8th and proposed special study session agenda for August 15th. 2. Prism Dial-A-Ride Program Ms. Schnitker presented the staff report and introduced Ms. Courtney Whited of Prism. She indicated that Ms. Whited worked with Council on the Dial-A-Ride program in 2006 and is familiar with the City and the needs of St. Louis Park. She stated that the City has been talking about the need for a door-to-door dial-a-ride program in the community and this type of program was identified by the Park Nicollet Successful Aging Initiative as a program that would help seniors stay active and connected to the community. She explained that the proposed program would not have rider eligibility restrictions, there would be no restrictions on destination, riders would be asked to pay a fee of approximately $3 each way, and the initial hours of operation would be Monday through Friday, 8:00 a.m. to 4:00 p.m. She stated that communities in Prism’s service area are asked for a contribution and the City has been asked for a $20,000 annual contribution, which would support approximately 2,000 rides. She stated that Prism was notified that it will receive a grant from Park Nicollet Foundation, contingent upon the City’s decision to provide funding. She stated that the proposed program would begin September 1 for a six month period and following the first six months, Council would review the program and determine whether to continue the program into 2012. She added that the City subsidizes part of the cost of each ride and the City will pay based on the number of rides, so if the City’s entire contribution is not spent, the money will carry over. Ms. Whited stated that Prism will provide the City with a quarterly report based on rider information, including age, sex, and income. She noted that Prism is required to obtain certain demographic information from riders and this information will be included in the City’s report. Councilmember Finkelstein stated that this he felt this was a great program. He expressed concern that there are no limits on the number of trips that riders can take in any week which may result in someone being denied service. Ms. Whited stated that the dial-a-ride program is an on-demand service and it fills up quickly. She noted that ADA regulations require that the program limit its standing orders to 50%, but it does not limit the number of rides someone can take in a week. City Council Meeting of August 15, 2011 (Item No. 3b) Page 2 Subject: Study Session Meeting Minutes of July 25, 2011 It was the consensus of the City Council to support adding Prism’s Dial-a-Ride program to enhance the level of transportation services available for St. Louis Park residents. Councilmember Sanger requested further information regarding publicity of the program. Ms. Whited presented a flyer that Prism will be sending to all riders; in addition, Prism will post informational materials in area churches, synagogues, at Lenox Community Center, Rainbow Foods, and other locations throughout the City. Councilmember Sanger suggested that Prism provide Council with informational materials to be handed out by Council at next week’s National Night Out activities. 3. Freight Rail – Letter from Hennepin County Mr. Harmening presented the staff report. Councilmember Sanger stated that she was disappointed by the letter from the County and felt the letter represented one more example of the County ignoring the City’s policy statement that freight rail can be located in the Kenilworth corridor. She added that she felt a response to the letter should be submitted that states that the City feels the offer to meet is premature and that the City wants to first sit down and talk about co-location in the Kenilworth corridor. Councilmember Finkelstein stated that he did not feel it was appropriate to comment on the letter at this time given Council’s earlier discussion in closed executive session. Councilmember Santa agreed, adding that it was also not appropriate to comment at this time given the absence of three Councilmembers. It was the consensus of the City Council to postpone discussion of this item until August 8th. 4. Communications/Meeting Check-in (Verbal) Mr. Harmening stated that Council is required to canvass the primary election results three days after the August 9th primary election. He agreed to send a calendar for August 12th so Councilmembers can fill in their availability to meet on August 12th. He added that only four Councilmembers are required to canvass the election results. Mr. Harmening advised that one of the City’s inspectors was hit by a semi-truck earlier today near Knollwood. He stated the truck hit the rear driver’s side quarter panel and the City’s employee seems to be okay. Councilmember Santa stated that a CenterPoint Energy project will begin around August 1st in the area of Highway 7 and Aquila which will create significant congestion. She added the project may take up to four weeks to complete. The meeting adjourned at 8:39 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: August 15, 2011 Agenda Item #: 3c UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA AUGUST 1, 2011 1. Call to Order Mayor Jacobs called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Julia Ross, Susan Sanger, and Sue Santa. Councilmembers absent: Paul Omodt. Staff present: City Manager (Mr. Harmening), City Clerk (Ms. Stroth), Police Lieutenant (Mr. Harcey), Westwood Hills Nature Center Program Aide (Ms. Haslerud), Westwood Hills Nature Center Activity Specialist (Mr. Pope), and Recording Secretary (Ms. Hughes). 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations 2a. Westwood Hills Nature Center Junior Naturalist Recognition Ms. Haslerud stated that the Junior Naturalists program was started many years ago when some kids approached staff about helping out at the Nature Center and the program has evolved over the past 21 years. She introduced Andrew Pope, Westwood Hills Nature Center Activity Specialist. Mr. Pope thanked the City Council for taking the time to honor the Junior Naturalists. He indicated that 56 volunteers were involved in the program this year who volunteered over 1,200 hours. He stated that all the volunteers have an amazing work ethic and will continue to be leaders in the community. Mayor Jacobs presented certificates to each of the Junior Naturalists and thanked them for their service to the community. 3. Approval of Minutes 3a. Special City Council Minutes July 11, 2011 The minutes were approved as presented. 3b. Study Session Minutes July 11, 2011 The minutes were approved as presented. 3c. City Council Meeting Minutes July 18, 2011 The minutes were approved as presented. City Council Meeting of August 15, 2011 (Item No. 3c) Page 2 Subject: City Council Meeting Minutes of August 1, 2011 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. Approve increasing the revolving line-of-credit that the City previously approved for Homes Within Reach (HWR), also known as West Hennepin Affordable Housing Land Trust (WHAHLT), from the current amount of $100,000, to $250,000. 4b. Designate American Liberty Construction Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $347,000 for the City Hall Garage Roof Replacement Project No. 2009-1700. 4c. Adopt Resolution No. 11-073 approving acceptance of monetary donation from Target Corporation in the amount of $600.00 to use toward the purchase of software for a GPS Tracker. 4d. Adopt Resolution No. 11-074 authorizing the special assessment for the repair of the water service line at 9219 Cedar Lake Road, St. Louis Park, MN - P.I.D. 07- 117-21-32-0003. 4e. Adopt Resolution No. 11-075 authorizing the special assessment for the repair of the water service line at 9601 W. 16th Street, St. Louis Park, MN - P.I.D. 01-117- 22-41-0122. 4f. Adopt Resolution No. 11-076 authorizing removal of noise walls from the project. 4g. Approve Resolution No. 11-077 amending and restating Resolution No. 11-066 regarding disbursement of excess Project Fund balance to the Sunset Ridge Condominium Associations’ replacement reserve fund. 4h. Approve for Vendor Claims. 4i. Approve for Filing Telecommunications Commission Minutes May 19, 2011. 4j. Approve for Filing Human Rights Commission Minutes June 20, 2011. 4k. Reappointment of Citizen Representatives to Boards and Commissions. It was moved by Councilmember Finkelstein, seconded by Councilmember Sanger, to approve the Agenda and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. The motion passed 6-0 (Councilmember Omodt absent). 5. Boards and Commissions – None 6. Public Hearings 6a. Public Hearing for On-Sale Intoxicating Liquor License – El Patron Mexican Cuisine Ms. Stroth presented the staff report regarding an application from El GordoUno, Inc. dba El Patron Mexican Cuisine for an on-sale intoxicating with Sunday sales liquor license to be located at 8140 Highway 7. She stated that this establishment was previously owned by Mr. Baldo Valenzo, who was twice denied a liquor license, and Mr. Valenzo sold the property to Mr. James Reyes and Mr. Jose Vazquez. She noted that both applicants are aware of the past owner’s inability to obtain a liquor license and the past owner no longer City Council Meeting of August 15, 2011 (Item No. 3c) Page 3 Subject: City Council Meeting Minutes of August 1, 2011 has an interest in the corporation. She advised that the new owners have agreed to work with the Police Department on liquor compliance and staff believes there is nothing to preclude the new owners from obtaining a liquor license. Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs closed the public hearing. Councilmember Santa stated that in the past, there was some question about who owned the business and who was involved in running the business. She asked if those issues have been resolved to the City’s satisfaction. She also asked staff to confirm that the new owners had no involvement in the previous complications that occurred on this property. Ms. Stroth replied that all issues with this property have been resolved to the City’s satisfaction. She also confirmed that the new owners have no involvement with the previous owner. Councilmember Ross asked if the restaurant has retained the previous staff. Mr. James Reyes, co-owner of El Patron Mexican Cuisine, appeared before the City Council and stated that all new staff is in place. He expressed appreciation to City staff for their assistance throughout this process. It was moved by Councilmember Santa, seconded by Councilmember Ross, to approve application from El GordoUno, Inc. dba El Patron Mexican Cuisine for an on-sale intoxicating with Sunday sales liquor license to be located at 8140 Highway 7 with the license term through March 1, 2012. The motion passed 6-0 (Councilmember Omodt absent). 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items - None 9. Communications Mayor Jacobs reminded residents of National Night Out tomorrow evening. He stated that there will be 129 official block parties and this is a great opportunity to meet your neighbors and connect with others in your neighborhood. Mayor Jacobs reminded residents of the Primary Election on Tuesday, August 9th for the Councilmenber At Large “B” seat which is open to the entire City for voting. Councilmember Finkelstein expressed thanks to Mr. Elliott Royce, long-time St. Louis Park resident, for hosting the recent party at Wolfe Park. 10. Adjournment The meeting adjourned at 7:46 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: August 15, 2011 City Council 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: Traffic Study Number 626: Authorize the Installation of Parking Restrictions on the 4400 Block of Excelsior Boulevard. RECOMMENDED COUNCIL ACTION: Motion to adopt Resolution authorizing parking restrictions on the 4400 Block of Excelsior Boulevard. POLICY CONSIDERATION: Does the City Council wish to authorize the installation of the parking restrictions as noted in this staff report? The proposed action is consistent with City policy. BACKGROUND: The City received a request from a business owner on the 4400 block of Excelsior Boulevard to restrict parking in the parking bay on the north side of Excelsior Boulevard (see attachment). Currently, there are no parking restrictions in this area and the business owner said that employees and bus riders are parking all day long in the space and there was no parking available for customers. City staff sent out two letters to businesses along this section of Excelsior Boulevard, requesting feedback on the proposal. There were no negative responses to the proposed restrictions. City staff finds this request reasonable, and is therefore recommending Council approve the attached resolution authorizing the installation of two hour parking restrictions in the parking bay on the north side of Excelsior Boulevard. Excelsior Boulevard is a county road, and staff from Hennepin County has agreed to install and maintain parking restriction signage which is authorized by City resolution. FINANCIAL OR BUDGET CONSIDERATION: There should be no City cost associated with implementing these parking restrictions. VISION CONSIDERATION: None. 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 August 15, 2011 (Item No. 4a) Page 2 Subject: TS # 626: Authorize Installation of Parking Restrictions 4400 Block of Excelsior Blvd. RESOLUTION NO. 11-_____ RESOLUTION AUTHORIZING INSTALLATION OF “TWO HOUR PARKING” RESTRICTIONS ON THE NORTH SIDE OF EXCELSIOR BOULEVARD FROM A POINT 85 FEET EAST OF MONTEREY DRIVE TO A POINT 240 FEET EAST OF MONTEREY DRIVE TRAFFIC STUDY NO. 626 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 the Director of Public Works is hereby authorized to install the following controls: 1. “Two Hour Parking” on the north side of Excelsior Boulevard from a point 85 feet east of Monterey Drive to a point 240 feet east of Monterey Drive. Reviewed for Administration: Adopted by the City Council August 15, 2011 City Manager Mayor Attest: City Clerk EXCELSIOR BLVDM O N T E R E Y D R 38T H S T W EXCELSIOR BLVDTS 626: Proposed Two Hour Parking Restrictions Proposed "Two Hour Parking" City Council Meeting of August 15, 2011 (Item No. 4a) Subject: TS # 626: Authorize Installation of Parking Restrictions 4400 Block of Excelsior Blvd.Page 3 Meeting Date: August 15, 2011 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: Prism Dial-A-Ride Program. RECOMMENDED ACTION: Motion to approve entering into a contract with Prism (People Responding in Social Ministry) to provide door-to-door dial-a-ride services to all residents of St. Louis Park starting September 1, 2011. POLICY CONSIDERATION: St. Louis Park is currently served by several transportation programs, each operating independently. The policy consideration is whether or not the City Council supports adding Prism’s Dial-a-Ride program to enhance the level of transportation services available for SLP residents. BACKGROUND: City staff and Courtney Whited, Prism Transportation Coordinator, met with the Council at the July 25 Study Session meeting to discuss Prism’s proposed plan to expand their door-to-door Dial-a-Ride program to St. Louis Park. Council indicated that they supported the proposal and the potential benefits that a flexible transportation program would provide and directed staff to proceed with the steps necessary to enter into a contract with Prism to provide Dial-a-Ride services to St. Louis Park residents. Under the proposed contract the City will agree to provide a $10,000 funding contribution to cover program costs for the period of September 1, 2011 through February 28, 2012. Following the first six months of operation, staff will evaluate the program’s operation and its ability to serve the transportation needs of St. Louis Park residents. A determination of whether to continue funding the program for 2012 will be based on staff’s assessment and Council approval. Existing St. Louis Park transportation programs. Although existing programs provide valuable and needed services, program restrictions regarding service areas, ride destinations, age requirements and inability to serve riders with mobility impairments diminish the flexibility of the programs. The existing programs serving St. Louis Park residents are described below. Metro Mobility: Large service area but rider must medically qualify in order to be eligible. Metro Mobility requires a 2 hour window for scheduling pick-ups. There is no restriction on ride destination. Transit Link: A dial-a-ride service for the general public that is intended to serve individuals where regular bus route service is not available. To be eligible, a rider needs to be more than ¼ of a mile from a regular bus stop in the winter and ½ a mile in the summer. Regular MTC bus routes in St. Louis Park result in a limited number of residents meeting the eligibility criteria. ADA-certified riders are eligible for door–to- door service. City Council Meeting of August 15, 2011 (Item No. 4b) Page 2 Subject: Prism Dial-A-Ride Program STEP Volunteer Program: Medical appointments only and limited to one ride per week, but will travel to most areas of the metro. Rider must be able to transfer themselves in and out of car; no wheelchairs but will allow a walker. Service is provided by volunteer drivers utilizing their own vehicles. Jewish Family and Children Services (JFCS) Deikel Transportation Program: Serves individuals over 60 years of age and they must be able to transfer themselves in and out of car; no wheelchairs or heavy walkers. Also, must be assessed by JFCS Senior Services for case management service needs. Medical appointments are a priority over other appointments. Serves Minneapolis area, some restrictions apply. Private Transportation Providers: Residents always have the option of utilizing taxis or private health care providers that offer transportation services for a fee. Who is Prism? Prism is a community funded social service agency that provides families in need with food, financial assistance, transportation and other services in times of financial hardships. Programs include a food shelf, financial assistance, school supplies, employment and budget counseling, home maintenance, referral services and transportation. Their mission is to “To walk alongside families providing support-based programs that encourages self-sufficiency”. For over 35 years, the volunteers and staff at Prism have helped families stabilize their immediate crisis and then continued to work with them; counseling, educating and goal-setting to empower them to take an active role in their own solutions. Description of Proposed Prism Service. Transportation services would include services to any destination in the cities of St. Louis Park, Golden Valley, Robbinsdale, Crystal, New Hope, Brooklyn Center and eastern Plymouth. Services would also be provided to public transit stops connecting riders for travel outside the service area. Funding contributions are requested from all communities included in the Prism service area. Prism is seeking a contribution from the City of $10,000 for an initial six month start up period and $20,000 annually thereafter if the Council decides to continue participation in the program. Rider eligibility for the new program will not be restricted by age or income and will be accessible for mobility impaired riders. Riders will be asked to pay a $3.00 fee per one-way trip and there is no limit on the number of trips taken per week. Prism operates on a 1 hour pick-up window although the driver will call the rider when he is 10 minutes away. The vehicles used will be handicapped accessible. Initially, the planned hours of operation for this transportation service are Monday through Friday, 8AM to 4PM. Support for Proposed Program. All existing transportation programs noted earlier have expressed their support for Prism’s proposed program, but also indicate that the existing programs do serve a specific need and that they anticipate continued operation and that they plan to support and coordinate with each other during periods of high ridership. Annette Sandler, Family and Children Jewish Services NORC Program, Rita Kach, Lenox Senior Program, Jackie Olafson, STEP, and Georgia Rowland, Chair of the St. Louis Park Family Collaborative Transportation Committee, all agree that a dial-a-ride transportation program with door-to-door service and covering an expanded service area, does not restrict ride destinations and one that provides more options for mobility impaired residents would provide a positive service to the community. In addition, the Park Nicollet Successful Aging Initiative identified transportation as one of its five focus areas and identified the need for a City Council Meeting of August 15, 2011 (Item No. 4b) Page 3 Subject: Prism Dial-A-Ride Program comprehensive and senior friendly transportation system in the community to ensure that seniors remain mobile, active and independent. Next Steps. Upon receiving Council approval, staff will prepare the necessary agreement for the City to participate in Prism’s dial-a-ride program for the period covering September 1, 2011 through February 28, 2012. The agreement will include an option for the City to provide continued funding for the program for 2012 contingent upon staff’s review of the programs performance following the first six months of operation and Council’s approval. FINANCIAL OR BUDGET CONSIDERATION: The City’s 2011 budget includes up to $20,000 in funding for a Dial-a-Ride program. An additional $20,000 is being proposed for the 2012 budget. The amount of the City’s contribution was determined based on community size and the anticipated number of riders. Based on similar size cities, Prism is estimating that St. Louis Park will generate approximately 2,000 rides annually. Prism was notified this week that they will be receiving a $10,000 grant from the Park Nicollet Foundation for the expansion of the Dial-a-Ride program into St. Louis Park pending the City’s commitment to fund the program. The grant will supplement the City’s contribution and revenues generated by rider fees. Prism will also be applying for Metropolitan Area on Aging funds to supplement program costs in 2012. The amount of funds expended will be dependent on the actual number of rides provided. VISION CONSIDERATION: The need for a variety of transportation modes allowing residents and visitors to easily and inexpensively travel throughout the city and the entire metro region was identified through the Visioning process as one of the City’s primary focus areas. Creation of a dial-a-ride program that expands ridership boundaries is consistent with many of the ideas and goals proposed by the Visioning Transportation Action Team including: Creating a superior transportation system, Alleviate barriers, Transportation system should strive to be simple, convenient, safe and inexpensive for everyone, All the transportation system components and modes should be integrated and designed to support one another, Embrace existing and future technology to make transportation more convenient and cost effective, Our transportation system is an innovative model for other communities, and Coordinate with neighboring cities’ transit efforts. Attachments: None Prepared by: Michele Schnitker, Housing Supervisor Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager Meeting Date: August 15, 2011 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: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens. RECOMMENDED ACTION: Motion to authorize the execution of easement agreements with MN 7200 LLC for ingress, egress and parking relating to Fire Station No. 2 and Northside Park. POLICY CONSIDERATION: Does the City Council wish to authorize execution of easements related to Fire Station No.2, Northside Park and Walgreens? BACKGROUND: At a study session on February 28, 2011, the City Council reviewed and discussed an outline of terms and conditions of an agreement to alter an existing easement agreement for shared ingress, egress and parking between Northside Park, Fire Station No. 2 and the neighboring Walgreens property. At that study session, City Council directed staff to prepare the necessary agreements and exhibits for City Council approval. An easement agreement has been prepared by the City Attorney for City Council approval that is consistent with the terms and conditions previously reviewed by the City Council. The agreements have been approved by both Walgreen Co. and the property owner, MN 7200 LLC, but not yet executed. History There is an existing easement that encumbers the Walgreens property, Fire Station No. 2 and Northside Park. That easement provides for shared ingress and egress from Louisiana Avenue and shared parking in a parking lot located directly north of the Walgreens building and on the southeast corner of Northside Park. The City needs to use the existing easement area for driveway, retaining walls, grading, and storm water management for the new Fire Station No. 2 plan. Staff and the property owner negotiated terms of a new easement to replace the existing easement. The proposed new easement would shift 10 of the 15 stalls in Northside Park that the City shares with Walgreens to the south side of Fire Station No. 2. The easement would allow City employees/officials to access Northside Park through the Walgreens property. The site plan amendment for the changes to the Walgreens parking lot may be approved administratively by the zoning administrator. The property will continue to comply with the Conditional Use Permit (Resolution 08-068) and Variance (Resolution 08-069) the City Council approved in 2008 for the pharmacy drive through. City Council Meeting of August 15, 2011 (Item No. 4c) Page 2 Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens FINANCIAL OR BUDGET CONSIDERATION: The easement agreements clear the way for the City to complete the construction of Fire Station No. 2 according to the approved design. The changes to the Walgreens parking lot are necessary to accommodate the new Fire Station No. 2. The City is responsible for the installation costs associated with the parking lot alterations and the administrative costs for the easement agreements. These costs were included in the approved Fire Stations project budget and in the awarded construction bids. MN 7200 LLC will be responsible for the ongoing maintenance, repair and replacement of the parking lot following the installation. VISION CONSIDERATION: Not applicable. Attachments: Termination of Easement Agreement Easement Agreement Prepared by: Sean Walther, Senior Planner Reviewed by: Meg McMonigal, Planning & Zoning Supervisor Kevin Locke, Community Development Director Luke Stemmer, Fire Chief Approved by: Tom Harmening, City Manager 142594 1 TERMINATION OF EASEMENT AGREEMENT This Termination of Easement Agreement is made as of the _____ day of ______________, 2011, by and between the CITY OF ST. LOUIS PARK, a Minnesota municipal corporation (“City”) and MN 7200 LLC, a Delaware limited liability company (“MN 7200”). RECITALS: WHEREAS, the City is the owner of the real property located in Hennepin County and legally described in Exhibit A attached hereto (“City Property”); WHEREAS, the City and Michael V. Dupont and Mary M. Dupont (“Duponts”), entered into an Easement Agreement dated March 15, 1999 (“Dupont Easement Agreement”) which Agreement was filed for record on April 27, 1999, as Document No. A7101758 in the office of the County Recorder in and for Hennepin County, Minnesota (the “Recorder’s Office”) relating to certain property owned by the Duponts and legally described on Exhibit B attached hereto (“Dupont Property”). WHEREAS, the Duponts transferred title to the Dupont Property to Croix Oil Company, a Minnesota corporation, by the recording of a Quit Claim Deed on July 31, 2001 as Document No. A7514426. City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 3 142594 2 WHEREAS, Croix Oil Company transferred title to the Dupont Property to David J. Libert and Jeanne C. Libert by the recording of a Quit Claim Deed on March 7, 2003 as Document No. A7967970. WHEREAS, by the recording of a Warranty Deed on November 30, 1978 as Document No. A4433194 and the recording of a Quit Claim Deed on November 30, 1978 as Document No. 4433196 (both in the Recorder’s Office), the southerly 7 feet of Parcel II of the Dupont Property (as described in Exhibit B) was conveyed to the County of Hennepin (the Dupont Property, less the property so conveyed to Hennepin County, is hereafter referred to as the “Walgreen Property”). WHEREAS, Jeanne C. Libert, as a single person after her divorce from David J. Libert, conveyed her interest in the Walgreen Property to David S. Libert, a single person after such divorce, by the recording of a Quit Claim Deed in the Recorder’s Office. WHEREAS, David J. Libert, a single person after such divorce, transferred title to the Walgreen Property to MN 7200 by the recording of a Limited Warranty Deed in the Recorder’s Office on November 18, 2008, as Document No. A9206839. WHEREAS, MN 7200 has leased the Walgreen Property to Walgreen pursuant to a Lease dated August 19, 2008, evidenced by a Memorandum of Lease recorded in the Recorder’s Office as Document No. A9206846. WHEREAS, the City and MN 7200 desire to terminate the Dupont Easement Agreement. NOW, THEREFORE, for good and valuable consideration, the parties hereto agree that the Dupont Easement Agreement dated March 15, 1999 and recorded on April 27, 1999 as Document No. A7101758 is hereby terminated in all respects. City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 4 142594 3 This Agreement may be executed in counterparts, all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the above-named parties have executed this Agreement effective the date and year first above written. CITY OF ST. LOUIS PARK By: Jeffrey W. Jacobs, Mayor By: Thomas K. Harmening, City Manager STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _______________, 2011, by Jeffrey W. Jacobs and Thomas K. Harmening, respectively the Mayor and City Manager of the City of St. Louis Park, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. ______________________________ Notary Public City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 5 142594 4 MN 7200 LLC By Net Lease Development LLC, its manager By: Allison F. Kern, its Vice Manager STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _______________, 2011, by Allison F. Kern, the Vice Manager of Net Lease Development LLC, a Delaware limited liability company, and the Manager of MN 7200 LLC, a Delaware limited liability company, on behalf of MN 7200 LLC. ______________________________ Notary Public THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 651-452-5000 TMS/cjh City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 6 142594 5 EXHIBIT A The North 87.1 feet, front and rear, of that part of Lot 9, Home Addition to St. Louis Park, lying east of a line drawn parallel with the east line of said Lot 9 from a point on the north line thereof distant 150 feet west from the northeast corner thereof, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota. AND All of Lots 7 and 8, Home Addition to St. Louis Park, according to the duly recorded plat thereof in the office of the County Recorder in and for Hennepin County, Minnesota. City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 7 142594 6 EXHIBIT B Parcel I: Lot 9, Home Addition to St. Louis Park, except that part lying East of a line drawn parallel to the East line of said Lot 9, from a point on the North line thereof distant 150 feet West from the Northeast corner thereof, and except the Southerly 7 feet of said Lot 9, according to the recorded plat thereof, Hennepin County, Minnesota. AND Parcel II: That part of Lot 9, Home Addition to St. Louis Park, lying South of North 87.1 feet thereof, front and rear and lying East of a line drawn parallel with the East line of said Lot 9 from a point on the North line thereof distant 150 feet West from the Northeast corner thereof, Hennepin County, Minnesota. City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 8 142652 CONSENT WALGREEN CO., an Illinois corporation, hereby consents to the foregoing Termination of Easement Agreement. IN WITNESS WHEREOF, this Consent is made effective as of ________________, 2011. WALGREEN CO., an Illinois corporation By _________________________________ Its __________________________ STATE OF ILLINOIS ) ) SS. COUNTY OF LAKE ) This instrument was acknowledged before me on __, 2011, by ______________________ the ______________________ of Walgreen Co., an Illinois corporation, on behalf of the corporation. Notary Public City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 9 142652 MORTGAGEE CONSENT The undersigned (the “Mortgagee”) is a mortgagee of the “Walgreen Property” described in foregoing Termination of Easement Agreement (the “Termination”) pursuant to a Mortgage and Security Agreement and Fixture Financing Statement dated October 14, 2008, recorded _______________as Document No. _______________ in the office of the County Recorder, Hennepin County, Minnesota, and an Assignment of Rents and Leases dated October 14, 2008, recorded as Document No. ______________ in the office of the County Recorder, Hennepin County, Minnesota (collectively, as amended from time to time, the “Mortgage”). Mortgagee hereby consents to and joins in the Termination; provided, that by consenting to and joining in the Termination, (i) such consent and joinder does not modify or amend the terms and conditions of the Mortgage and related loan documents, and (ii) the Mortgage shall remain as a lien on the property described therein until released or satisfied. IN WITNESS WHEREOF, the Mortgagee has caused this Consent to be executed on the ___ day of _______________, 2011. BNC National Bank By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ___ day of______________, 2011, by _________________________, the _______________________ of BNC National Bank, a national banking association, on behalf of the national banking association. City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 10 142595 EASEMENT AGREEMENT THIS AGREEMENT entered into this ______ day of _____________, 2011, by and between MN 7200 LLC, a Delaware limited liability company (“MN 7200”) and the CITY OF ST. LOUIS PARK, a Minnesota municipal corporation (“City”). RECITALS: WHEREAS, MN 7200 is the owner of real property located in Hennepin County, Minnesota and legally described in Exhibit A attached hereto (“Walgreen Property”) and MN 7200 has leased the Walgreen Property to Walgreen Co., an Illinois corporation (“Walgreen”) pursuant to the Lease dated August 19, 2008 (the “Walgreen Lease”), evidenced of record by a Memorandum of lease recorded as Document No. A9206846 in the Office of the County Recorder in and for Hennepin County, Minnesota (the “Recorder’s Office”); and WHEREAS, the City is the owner of real property in Hennepin County, Minnesota and consisting of “Parcel I” and “Parcel II” as legally described in Exhibit B attached hereto (“City Property”); and WHEREAS, Parcel II of the City Property (as legally described in Exhibit B attached hereto) is contiguous to the Walgreen Property on the north side of the Walgreen Property and is used as a City park (Parcel II of the City Property, as legally described in Exhibit B attached hereto, is sometimes also referred to herein as the “Park Property”), and Parcel I of the City City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 11 142595 2 Property (as Parcel I of the City Property is legally described in Exhibit B attached hereto) lies north and easterly of the Walgreen Property and is used as a City fire station. NOW, THEREFORE, for good and valuable consideration of the mutual covenants herein, the parties agree as follows: 1. Grant of Easements by MN 7200. MN 7200 hereby grants to the City the following perpetual, non-exclusive easements for the benefit of and appurtenant to the City Property as follows: a. An easement for ingress and egress (labeled on Exhibit C attached hereto as, and referred to herein as, the “City Property Access Easement”) over and across the north 8.00 feet of the following described property: That part of Lot 9, Home Addition to St. Louis Park, lying south of north 87.1 feet thereof, front and rear and lying east of a line drawn parallel with the east line of said Lot 9 from a point on the north line thereof distant 150 feet west from the northeast corner thereof, Hennepin County, Minnesota. b. A perpetual non-exclusive easement for ingress and egress (labeled on Exhibit C attached hereto as, and referred to herein as, the “Park Property Access Easement”) to the Park Property over the drive aisles on the Walgreen Property lying north of the existing building now located on the Walgreen Property for use only by City officials and City maintenance vehicles. There will be no public access to the Park Property. 2. Grant of Easements by City. The City hereby grants to MN 7200 the following perpetual, non-exclusive easements for the benefit of and appurtenant to the Walgreen Property as follows: a. An easement for ingress and egress (labeled on Exhibit C attached hereto as, and referred to herein as, the “Walgreen Property Access Easement”) over and across the south 17.00 feet of Parcel I of the City Property (as Parcel I of the City Property is legally described in Exhibit B attached hereto). b. An easement for parking purposes (labeled on Exhibit C attached hereto as, and referred to herein as, the “Walgreen Property Parking Easement”) over and across that part of Parcel I of the City Property (as Parcel I of the Property is legally described in Exhibit B attached hereto) described as follows: Beginning at City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 12 142595 3 the northwest corner of the south 17.00 feet of the above described property; thence easterly, along the northerly line of said south 17.00 feet, a distance of 85.50 feet; thence northerly, deflecting to the left 90 degrees 00 minutes 00 seconds, a distance of 20.00 feet; thence westerly, along a line drawn parallel with the northerly line of said south 17.00 feet, to the west line of Parcel I of the City Property (as Parcel I of the City Property is legally described in Exhibit B attached hereto); thence southerly to the point of beginning and there terminating. 3. Improvements to be Completed by City. The City shall, at its sole cost and expense, install, improve, replace and/or repair all of the following in and about the City Property Access Easement, the Park Property Access Easement, the Walgreen Property Access Easement and the Walgreen Property Parking Easement (collectively, the “Easements”): the required curb and gutter; storm water improvements required for proper drainage and detention; utility relocations; landscaping; patch, repair seal coat and restripe all affected drive aisles and parking areas including but not limited to all of those parking areas on the north side of the Walgreen building now situated on the Walgreen Property to provide for no less than twenty- eight (28) parking stalls on the north side of the Walgreen building for the exclusive use of the owners, tenants and occupants of the Walgreen Property and their respective employees, contractors and invitees, as shown on Exhibit C attached hereto and not less than and eight and no more than ten (10) new shared parking stalls within the Walgreen Property Parking Easement (collectively the “Improvements”), all in accordance with the plans and specifications approved by the City, MN 7200 and Walgreen. 4. Construction Conditions. The City and its contractors shall have access to the Walgreen Property for the purpose of constructing, repairing or replacing the Improvements The City will maintain the access point and drive aisles to and from and within the Walgreen Property open at all times during such construction, repair and replacement, except for brief and partial disruptions to the driveway over the Walgreen Property Access Easement and the City City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 13 142595 4 Property Access Easement to Louisiana Avenue during installation of the parking stalls in the Walgreen Property Parking Easement, during which time at least one-half (1/2) of the driveway shall be open for vehicular ingress as more specifically set forth below. The City shall commence work to complete the improvements on or before June 15, 2012 and shall give at least five (5) business days advance notice to MN 7200, the Walgreen Store Manager and the Little Caesar’s store manager of the date on which the City will commence the work to complete the Improvements (the “Work”), and once the Work is commenced, the Work shall be substantially completed within twenty one (21) days after such commencement. Notwithstanding the foregoing or anything contained in this Agreement to the contrary, the City shall not perform any Work during the months of November or December unless MN 7200 and Walgreen consent thereto. At all times during performance of the Work, the City shall procure and maintain (or cause to be procured and maintained by its general contractor) general and/or comprehensive public liability and property damage insurance against claims for personal injury, death, or property damage occurring upon the Walgreen Property, with single limit coverage of not less than an aggregate of Two Million Dollars ($2,000,000.00) including umbrella coverage, if any. Such insurance coverage shall be procured through companies which are authorized to do business in the State of Minnesota and shall name Walgreen and MN 7200 as additional insureds thereto. The City shall provide a certificate of such insurance prior to commencing the Work. For any Work that disrupts the driveway over the Walgreen Property Access Easement and the City Property Access Easement to Louisiana Avenue: a. The City will schedule such Work with the on-site store managers for the retail stores (Walgreen and Little Caesars) to avoid peak customer hours and deliveries. City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 14 142595 5 b. The City will notify the store managers at least 24 hours in advance of doing such Work. c. The City will minimize the duration of any disruptions due to the Work. d. The City anticipates pavement removal and concrete curb installation will last three hours and that during this time one half of the driveway/aisle will be closed for worker safety. It will take approximately two days for the concrete to cure during which time the driveway will be open and passable. Following the cure time, there will be another three hours of partial disruption to the driveway for paving. During those times that only one-half of the driveway/aisle is open, the City agrees that it shall configure said remaining open portion so that vehicular ingress from Louisiana Avenue (continuing westward through the Walgreen Property) is preserved. 5. Maintenance of Improvements. After the City’s completion of the Improvements, MN 7200 will be responsible for all ongoing maintenance, upkeep, repair and replacement of the paved surfaces, curb and gutter and all other components of the parking areas and drive aisles within the Easements, including snowplowing (collectively, the “Maintenance Responsibility”). The City acknowledges and agrees that MN 7200 shall have the right to delegate all or portions of the Maintenance Responsibility to its tenants or occupants, including to Walgreen under the Walgreen Lease. 6. Run with the Land. The easements, covenants, conditions, rights and obligations set forth herein, including both the benefits and burdens thereof, are to and shall run with title to the City Property and the Walgreen Property (each a “Property” and collectively the “Properties”) and shall be binding on the City, MN 7200 and every other person or entity now or hereafter having any fee, leasehold or other interest therein and shall inure to the benefit of such parties and their successors, assigns, heirs, and personal representatives. 7. Taxes and Assessments. The owner from time to time of the City Property and the owner from time to time of the Walgreen Property (such owners are referred to herein each as an “Owner” and collectively as the “Owners”) shall each pay all taxes, assessments, or City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 15 142595 6 charges of any type levied or made by any governmental body or agency with respect to its Property. 8. No Rights in Public; No Implied Easements. Nothing contained herein shall be construed as creating any rights in the general public or as dedicating for public use any portion of the City Property or the Walgreen Property. No easements shall be implied by this Agreement, except (i) those expressly set forth in Sections 1 and 2, and/or (ii) an easement in favor of the City (and its contractors, subcontractors, design professionals, material suppliers and their respective employees) over the Walgreen Property so as to enable the construction of the Improvements. 9. Remedies and Enforcement. 9.1 All Legal and Equitable Remedies Available. In the event of a breach or threatened breach by the City, MN 7200 or Walgreen of any of the terms, covenants, restrictions or conditions hereof, the other Owner and Walgreen, as applicable, shall be entitled forthwith to full and adequate relief by injunction and/or all such other available legal and equitable remedies from the consequences of such breach, including payment of any amounts due and/or specific performance. Walgreen shall have the right, but not the obligation, to enforce this Agreement on behalf of the Owner of the Walgreen Property, and/or to cure a breach or default hereunder by the Owner of the Walgreen Property, which enforcement or cure shall be accepted by the City as if effected by the Owner of the Walgreen Property. 9.2 Lien Rights. Any claim for reimbursement, including interest as aforesaid, and all costs and expenses including reasonable attorneys' fees awarded to any Owner (or to Walgreen in connection with the exercise of its rights set forth in Section 9.1) in City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 16 142595 7 enforcing any payment in any suit or proceeding under this Agreement shall be assessed against the defaulting Owner in favor of the prevailing party and shall constitute a lien (the “Assessment Lien”) against the Property of the defaulting Owner until paid, effective upon the recording of a notice of lien with respect thereto in the County Recorder’s Office; provided, however, that any such Assessment Lien shall be subject and subordinate to (i) liens for taxes and other public charges which by applicable law are expressly made superior, (ii) all liens recorded in the County Recorder’s Office prior to the date of recordation of said notice of lien, and (iii) all leases entered into, whether or not recorded, prior to the date of recordation of said notice of lien. All liens recorded subsequent to the recordation of the notice of lien described herein shall be junior and subordinate to the Assessment Lien. Upon the timely curing by the defaulting Owner of any default for which a notice of lien was recorded, the party recording same shall record an appropriate release of such notice of lien and Assessment Lien. 9.3 Remedies Cumulative. The remedies specified herein shall be cumulative and in addition to all other remedies permitted at law or in equity. 9.4 No Termination For Breach. Notwithstanding the foregoing to the contrary, no breach hereunder shall entitle an Owner to cancel, rescind, or otherwise terminate this Agreement. No breach hereunder shall defeat or render invalid the lien of any mortgage upon either Property made in good faith for value, but the easements, covenants, conditions and restrictions hereof shall be binding upon and effective against the Owners of the Properties covered hereby whose title thereto is acquired by foreclosure, trustee's sale, or otherwise. City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 17 142595 8 10. Term. The easements, covenants, conditions and restrictions contained in this Agreement shall be effective commencing on the date of recordation of this Agreement in the County Recorder’s Office and shall remain in full force and effect thereafter in perpetuity, unless this Agreement is modified, amended, canceled or terminated by the written consent of all then record Owners of the City Property and the Walgreen Property in accordance with Section 11.2 hereof. 11. Miscellaneous. 11.1 Attorneys' Fees. In the event an Owner or Walgreen institutes any legal action or proceeding for the enforcement of any right or obligation herein contained, the prevailing party after a final adjudication (including appeals) shall be entitled to recover its costs and reasonable attorneys' fees incurred in the preparation and prosecution of such action or proceeding. 11.2 Amendment. (a) The provisions of this Agreement may be modified or amended, in whole or in part, or terminated, only by the written consent of all record Owners of the City Property and the Walgreen Property, evidenced by a document that has been fully executed and acknowledged by all such record Owners and recorded in the County Recorder’s Office. (b) Notwithstanding Section 11.2(a) above to the contrary, no termination of this Agreement, and no modification or amendment of this Agreement shall be made nor shall the same be effective unless the same has been expressly consented to in writing by Walgreen (during the continuance of the Walgreen Lease). City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 18 142595 9 11.3 Time of Essence. Time is of the essence of this Agreement. 11.4 Entire Agreement. This Agreement contains the complete understanding and agreement of the parties hereto with respect to all matters referred to herein, and all prior representations, negotiations, and understandings are superseded hereby. 11.5 Notices. Notices or other communication hereunder shall be in writing and shall be sent certified or registered mail, return receipt requested, or by other national overnight courier company, or personal delivery. Notice shall be deemed given upon receipt or refusal to accept delivery. Each party and Walgreen may change from time to time their respective address for notice hereunder by like notice to the other party and Walgreen. Notice given by any Owner hereunder to be effective shall also simultaneously be delivered to Walgreen (during the continuance of the Walgreen Lease). The initial notice addresses of the Walgreen, MN 7200 and the City are as follows: Walgreen: Walgreen Co. Attention: Real Estate Law Department Mail Stop No. 1420 104 Wilmot Rd., 2nd floor Deerfield, IL, 60015 Re: Store #11835 MN 7200: MN 7200 LLC c/o Capital Real Estate, Inc. Attention: Manager 50 South Sixth Street Minneapolis, MN 55402 City: City of St. Louis Park Attention: City Manager 5005 Minnetonka Blvd St. Louis Park, MN 55416 City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 19 142595 10 11.6 Governing Law. The laws of the State of Minnesota shall govern the interpretation, validity, performance, and enforcement of this Agreement. 11.7 Estoppel Certificates. Each Owner, within thirty (30) business days of its receipt of a written request from the other Owner or Walgreen, shall from time to time provide the requesting Owner or Walgreen, a certificate binding upon such Owner stating: (a) to the best of such Owner’s knowledge, whether any party to this Agreement is in default or violation of this Agreement and if so identifying such default or violation; and (b) that this Agreement is in full force and effect and identifying any amendments to the Agreement as of the date of such certificate. 11.8 Counterparts. This Agreement may be executed in counterparts. All counterparts shall collectively constitute a single instrument. [Remainder of page intentionally left blank; signatures follow] City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 20 142595 11 IN WITNESS WHEREOF, the above-named parties have executed this Agreement effective the date and year first above written. CITY OF ST. LOUIS PARK By: Jeffrey W. Jacobs, Mayor By: Thomas K. Harmening, City Manager STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _______________, 2011, by Jeffrey W. Jacobs and Thomas K. Harmening, respectively the Mayor and City Manager of the City of St. Louis Park, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. ______________________________ Notary Public City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 21 142595 12 MN 7200 LLC By Net Lease Development LLC, its Manager By: Allison F. Kern, Its Vice Manager STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _______________, 2011, by Allison F. Kern, the Vice Manager of Net Lease Development LLC, a Delaware limited liability company and the manager of MN 7200 LLC, a Delaware limited liability company, on behalf of MN 7200 LLC. ______________________________ Notary Public City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 22 142595 13 EXHIBIT A LEGAL DESCRIPTION OF WALGREEN PROPERTY Parcel I: Lot 9, Home Addition to St. Louis Park, except that part lying East of a line drawn parallel to the East line of said Lot 9, from a point on the North line thereof distant 150 feet West from the Northeast corner thereof, and except the Southerly 7 feet of said Lot 9, according to the recorded plat thereof, Hennepin County, Minnesota. AND Parcel II: That part of Lot 9, Home Addition to St. Louis Park, lying South of North 87.1 feet thereof, front and rear and lying East of a line drawn parallel with the East line of said Lot 9 from a point on the North line thereof distant 150 feet West from the Northeast corner thereof, and except the Southerly 7 feet of said Lot 9, Hennepin County, Minnesota. City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 23 142595 14 EXHIBIT B LEGAL DESCRIPTION OF CITY PROPERTY Parcel I: The North 87.1 feet, front and rear, of that part of Lot 9, Home Addition to St. Louis Park, lying east of a line drawn parallel with the east line of said Lot 9 from a point on the north line thereof distant 150 feet west from the northeast corner thereof, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota. AND Parcel II: All of Lots 7 and 8, Home Addition to St. Louis Park, according to the duly recorded plat thereof in the office of the County Recorder in and for Hennepin County, Minnesota. City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 24 142595 15 EXHIBIT C EASEMENT DEPICTION City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 25 142595 WALGREEN CONSENT WALGREEN CO., an Illinois corporation, hereby consents to the foregoing Easement Agreement and accepts and assumes the Maintenance Responsibility set forth in Section 5 thereof. IN WITNESS WHEREOF, this Consent is made effective as of _______________, 2011. WALGREEN CO., an Illinois corporation By _________________________________ Its __________________________ STATE OF ILLINOIS ) ) SS. COUNTY OF LAKE ) This instrument was acknowledged before me on __________________, 2011, by ______________________ the ______________________ of Walgreen Co., an Illinois corporation, on behalf of the corporation. Notary Public City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 26 142595 MORTGAGEE CONSENT The undersigned (the “Mortgagee”) is a mortgagee of the “Walgreen Property” described in Exhibit A to the Easement Agreement (the “Agreement”) pursuant to a Mortgage and Security Agreement and Fixture Financing Statement dated October 14, 2008, recorded _______________as Document No. _______________ in the office of the County Recorder, Hennepin County, Minnesota, and an Assignment of Rents and Leases dated October 14, 2008, recorded as Document No. ______________ in the office of the County Recorder, Hennepin County, Minnesota (collectively, as amended from time to time, the “Mortgage”). Mortgagee hereby consents to and joins in the Agreement; provided, that by consenting to and joining in the Declaration, (i) such consent and joinder does not modify or amend the terms and conditions of the Mortgage and related loan documents, and (ii) the Mortgage shall remain as a lien on the property described therein, prior to any liens imposed under the Agreement, until released or satisfied. IN WITNESS WHEREOF, the Mortgagee has caused this Consent to be executed on the ___ day of _______________, 2011. BNC National Bank By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ___ day of______________, 2011, by _________________________, the _______________________ of BNC National Bank, a national banking association, on behalf of the national banking association. Notary Public THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 651-452-5000 TMS/cjh City Council Meeting of August 15, 2011 (Item No. 4c) Subject: Easement Agreements for Fire Station No. 2, Northside Park and Walgreens Page 27 Meeting Date: August 15, 2011 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: Met Council LCDA Grant Application – Louisiana Avenue LRT Station Development Area. RECOMMENDED ACTION: Motion to adopt a resolution identifying the need for Livable Communities Demonstration Account funding and authorizing an application for grant funds. POLICY CONSIDERATION: Does the Council support the submission of an application to the Metropolitan Council Livable Community Demonstration Account for grant funds to study the Louisiana LRT station area which will assist in preparing for future redevelopment and change around the future LRT station? BACKGROUND: The Metropolitan Council has again this year made planning (pre-development) grants available through the Livable Communities Demonstration Account. In 2011, there is $1 million available for this type of grant; the maximum grant award is $100,000. Staff identified the Louisiana Avenue LRT Station area as a qualifying location under the program criteria, and proposed a grant request to study changing land use activities and opportunities to improve connectivity between the station, major activity generators, and redevelopment sites. The further planning will be focused on three principal activities: Preparing detailed station area plans and creating details for implementation Soil testing to determine development feasibility, including analysis for surface water management improvements (stormwater infrastructure) Implementation strategies The total grant request is for $80,000. The activities in the study will include planning efforts to improve connectivity between the future LRT station and major destinations like Methodist Hospital and the Meadowbrook Apartments. A resolution authorizing the grant application is attached. The resolution has been crafted to reflect the specific language required by the Metropolitan Council. FINANCIAL OR BUDGET CONSIDERATION: If selected, the grant funding is contingent on a 25% match from the City, representing a potential obligation of $20,000.00. The match would be funded through the Development Fund. VISION CONSIDERATION: The proposed grant-funded studies and plans will enhance the City’s vision goals for sidewalk and trails, gathering places, environment, and transportation. Specifically addressed in the grant request are improvements to the pedestrian environment surrounding the Louisiana Station area and enhanced opportunities for business development. City Council Meeting of August 15, 2011 (Item No. 4d) Page 2 Subject: Met Council LCDA Grant Application – Louisiana Ave LRT Station Development Area Attachments: Resolution Map – Project Area Prepared by: Adam Fulton, Planner Reviewed by: Meg McMonigal, Planning and Zoning Supervisor Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager City Council Meeting of August 15, 2011 (Item No. 4d) Page 3 Subject: Met Council LCDA Grant Application – Louisiana Ave LRT Station Development Area RESOLUTION NO. 11-____ RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT FUNDING AND AUTHORIZING AN APPLICATION FOR GRANT FUNDS FOR PRE-DEVELOPMENT STUDY OF THE FUTURE LOUISIANA AVENUE LRT STATION AREA ON THE SOUTHWEST TRANSITWAY WHEREAS, the City of St. Louis Park is a participant in the Livable Communities Act’s Housing Incentives Program for 2011 as determined by the Metropolitan Council, and is therefore eligible to apply for Livable Communities Demonstration Account funds; and WHEREAS, the City has identified the future Beltline LRT station area as a location that meets the Demonstration Account’s purposes and criteria and is consistent with and promotes the purposes of the Metropolitan Livable Communities Act and the policies of the Metropolitan Council’s adopted metropolitan development guide; and WHEREAS, the City has the institutional, managerial and financial capability to ensure adequate project administration; and WHEREAS, the City certifies that it will comply with all applicable laws and regulations as stated in the grant agreement; and WHEREAS, the City agrees to act as legal sponsor for the project contained in the grant application submitted on July 15, 2011; and WHEREAS, the City acknowledges Livable Communities Demonstration Account Pre- Development grants are intended to fund activities that can prepare projects to apply for the LCDA Development Grant category; and WHEREAS, only a limited amount of grant funding is available through the Metropolitan Council’s Livable Communities Demonstration Account during each funding cycle and the Metropolitan Council has determined it is appropriate to allocate those scarce grant funds only to eligible projects that would not occur without the availability of Demonstration Account grant funding. NOW THEREFORE BE IT RESOLVED that the City Council of St. Louis Park, after appropriate examination and due consideration: 1. Finds that it is in the best interests of the City’s development goals and priorities for the proposed activities to be performed for the Beltline LRT project area site, as identified in the application, and at this particular time. 2. Finds that the project component(s) for which Livable Communities Demonstration Account funding is sought: a. will not occur solely through private or other public investment within the reasonably foreseeable future; and b. will not occur within two years after a grant award unless Livable Communities Demonstration Account funding is made available for this project at this time. City Council Meeting of August 15, 2011 (Item No. 4d) Page 4 Subject: Met Council LCDA Grant Application – Louisiana Ave LRT Station Development Area 3. Represents that the City has undertaken reasonable and good faith efforts to procure funding for the project activities for which Livable Communities Demonstration Account funding is sought but was not able to find or secure from other sources funding that is necessary for completion of the activities within two years and states that this representation is based on the following reasons and supporting facts: a. There are no City funds budgeted for the purposes of the project activities beyond those provided as matching funds. b. Due to continuing projected budgetary shortfalls, it is not expected that additional City funds will become available within the timeframe cited in the application. c. No other known outside sources are projected to be available to fund the project activities within the timeframe cited in the application. 4. Authorizes its Community Development Director to submit on behalf of the City an application for Metropolitan Council Livable Communities Demonstration Account Pre- Development Grant funds for the project activities identified in the application, and to execute such agreements as may be necessary to implement the project on behalf of the City. Reviewed for Administration Adopted by the City Council August 15, 2011 City Manager Mayor Attest: City Clerk City Council Meeting of August 15, 2011 (Item No. 4d) Page 5 Subject: Met Council LCDA Grant Application – Louisiana Ave LRT Station Development Area Meeting Date: August 15, 2011 Agenda Item #: 4e OFFICIAL MINUTES OF AUGUST 26, 2010 BOARD OF ZONING APPEALS CITY OF ST. LOUIS PARK The St. Louis Park Board of Zoning Appeals Committee conducted a meeting on August 26, 2010, at St. Louis Park City Hall, 5005 Minnetonka Boulevard, St. Louis Park, Minnesota – Westwood Room. Members Present: Chair Henry Solmer Vice-Chair Ryan Burt Commissioner James Gainsley Commissioner Paul Roberts Members Absent: Commissioner Susan Bloyer Staff Present: Gary Morrison, Assistant Zoning Administrator Nancy Sells, Administrative Assistant Others: Tom Scott, City Attorney 1. CALL TO ORDER – ROLL CALL Chair Solmer called the regular meeting to order at 6:10 p.m. 2. APPROVAL OF MINUTES OF MAY 11, 2010 Commissioner Gainsley made a motion to approve the minutes of May 11, 2010. The motion passed on a vote of 4-0. 3. CONSENT AGENDA: None 4. PUBLIC HEARINGS A. Appeal of Zoning Determination Location: 8951 36th Street West Applicant: J.J. Beske Holdings, LLC Case No.: 10-24-AP Gary Morrison, Assistant Zoning Administrator, presented the staff report. He explained that the applicant is appealing staff’s determination that a U-Haul truck, trailer and equipment rental facility is allowed in the C-2 District by Conditional Use Permit only. Commissioner Gainsley commented that according to staff the difference between a parking structure and parking as a land use is an important point. He said he could not find a definition of a parking structure, other than a parking ramp, in the Zoning Ordinance. City Council Meeting of August 15, 2011 (Item No. 4e) Page 2 Subject: Board of Zoning Appeals Meeting Minutes of August 26, 2010 Mr. Morrison said there isn’t a definition of a parking structure in the Zoning Ordinance. He said this came up in the staff report as the applicant argued that they had a parking lot, therefore they should be able to put vehicles and U-Haul trucks on it. Mr. Morrison stated that just because there is a parking lot, a structure so to speak, doesn’t mean it can be used in any way. The land uses are regulated in the zoning district. Commissioner Gainsley added that one would not be able to park trailers on the lot, either. That would be for new motor vehicles, with a separate provision for used vehicles. Commissioner Burt said asked if the applicant had considered applying for a Conditional Use Permit for outdoor sales. Mr. Morrison said outdoor sales is permitted with conditions and is a different category from permitted by Conditional Use Permit. It is still administrative but there are some conditions that are attached to it that are specific. It wasn’t considered by staff in this case because it prohibits the use of automobiles. Commissioner Gainsley asked why the applicant objected to getting a Conditional Use Permit. Mr. Morrison responded that initially the applicant was concerned that the Conditional Use Permit would not be granted. The applicant was concerned about the Planning Commission and City Council process. They were hoping it could be done administratively. But under the motor vehicle sales definition it required a Conditional Use Permit. Mr. Morrison said that ultimately the applicant agreed to go through the process. Chair Solmer opened the public hearing. Peter Tiede, attorney, stated that he was representing Gator Investment, an adjacent property owner. He said his client strongly opposes the U-Haul use and supports the staff determination. He stated that they do, however, disagree that the application falls under motor vehicle sales. Mr. Tiede stated that Gator Investment requests that the appeal be denied and staff’s findings be affirmed, but they don’t agree it is even a permitted use by the motor vehicle sales definition. Commissioner Gainsley asked Mr. Tiede to explain the disagreement with the definition. Mr. Tiede read the definition from Section 36-142(d)(18) of the Zoning Ordinance, commenting that the applicant fails to meet the definition in 4-5 different ways. He said these include: no outdoor sales lot is proposed, many of the vehicles do not have motors, and motor vehicle sales require 50% new vehicles. Chair Solmer closed the public hearing as no one else was present wishing to speak. Commissioner Gainsley made a motion to adopt Resolution No. 03-10 denying the appeal of JJ Beske Holdings, Inc. City Council Meeting of August 15, 2011 (Item No. 4e) Page 3 Subject: Board of Zoning Appeals Meeting Minutes of August 26, 2010 Commissioner Burt said as a question to the City Council he thought by adopting the resolution the Board is actually finding that the correct categorization would be motor vehicles sales. He asked if this is really the correct way to try to do this. Tom Scott, City Attorney, responded what the decision in the resolution indicates is that the Board would be opposing the administrative decision that the U-Haul business is only allowed in the conditional use motor vehicle sales land use definition. He said the items discussed in the context of the Conditional Use Permit application are not part of the Board’s determination. He went on to say that the City Council ultimately denied the Conditional Use Permit. Maybe another facility would work, but in this case the Council determined for a number of reasons it did not fit at this location with this particular facility. Commissioner Burt said he understood and he is reassured by Items 4 and 6 of the resolution. The motion to adopt Resolution No. 03-10 denying the appeal of JJ Beske Holdings, Inc. passed on a vote of 4-0. 5. UNFINISHED BUSINESS 6. NEW BUSINESS: None 7. COMMUNICATIONS 8. ADJOURN The meeting was adjourned at 6:35 p.m. Respectfully submitted, Nancy Sells Administrative Assistant Meeting Date: August 15, 2011 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: Vendor Claims. RECOMMENDED ACTION: Motion to accept for filing Vendor Claims for the period July 23, 2011 through August 5, 2011. 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 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 1Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 130.00INSPECTIONS G & A TRAINING10,000 LAKES CHAPTER 130.00 245.03TRAFFIC CONTROL OTHER IMPROVEMENT SUPPLIES3D SPECIALTIES INC 245.03 352.69FABRICATIONOTHER IMPROVEMENT SUPPLIES3M 352.69 468.00SKATEBOARD PROGRAMS OTHER CONTRACTUAL SERVICES3RD LAIR SKATEPARK 468.00 3.73TREE MAINTENANCE GENERAL SUPPLIESA-1 OUTDOOR POWER INC 3.73 443.99PREVENTATIVE MAINTENANCE GENERAL SUPPLIESA-OK EQUIPMENT & SUPPLY CO 443.99 100.55ORGANIZED REC G & A MILEAGE-PERSONAL CARABERNATHY, LISA 45.98PLAYGROUNDSGENERAL SUPPLIES 146.53 94.34WATER UTILITY G&A GENERAL SUPPLIESABLE HOSE & RUBBER INC 94.34 2,800.00PRE-SCHOOL PROGRAMS OTHER CONTRACTUAL SERVICESABRAKADOODLE 2,800.00 5,947.64PARK AND RECREATION BALANCE SH INVENTORYACTION FLEET INC 5,947.64 5,011.75WATER UTILITY G&A GENERAL PROFESSIONAL SERVICESAE2S 2,439.75WATER UTILITY G&A IMPROVEMENTS OTHER THAN BUILDI 7,451.50 8,060.12MUNICIPAL BLDG BUILDINGS & STRUCTURESAECOM INC 8,060.12 76.36OPERATIONSOPERATIONAL SUPPLIESAIRGAS NORTH CENTRAL 76.36 1,660.50PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICESALLIANCE MECH SRVCS INC City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 2 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 2Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 1,660.50 501.67PATCHING-PERMANENT OTHER IMPROVEMENT SUPPLIESALLIED BLACKTOP 501.67 32.96SUMMER GRADE 4-5 GENERAL SUPPLIESALMSTEAD'S SUPERVALU 32.96 82.55POLICE G & A TELEPHONEAMERICAN MESSAGING 82.55 3,221.00WATER UTILITY G&A SUBSCRIPTIONS/MEMBERSHIPSAMERICAN WATER WORKS ASSOC 3,221.00 55.58GENERAL BUILDING MAINTENANCE OPERATIONAL SUPPLIESAMERIPRIDE LINEN & APPAREL SER 137.56PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIES 130.68PARK MAINTENANCE G & A OPERATIONAL SUPPLIES 64.42ENTERPRISE G & A GENERAL SUPPLIES 105.02VEHICLE MAINTENANCE G&A OPERATIONAL SUPPLIES 80.62WATER UTILITY G&A OPERATIONAL SUPPLIES 80.62SEWER UTILITY G&A OPERATIONAL SUPPLIES 13.42STORM WATER UTILITY G&A OPERATIONAL SUPPLIES 667.92 39,957.00CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDIAMES CONSTRUCTION 39,957.00 1,098.84SUPPORT SERVICES G&A OFFICE SUPPLIESANCHOR PAPER CO 1,098.84 1,040.78FABRICATIONOTHER IMPROVEMENT SUPPLIESANDERSEN INC, EARL 1,040.78 200.00SOLID WASTE G&A OTHERAPOGEE RETAIL LLC 200.00 196.96GENERAL CUSTODIAL DUTIES CLEANING/WASTE REMOVAL SUPPLYARAMARK UNIFORM CORP ACCTS 196.96 119.64IT G & A OFFICE SUPPLIESARC 119.64 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 3 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 3Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 54,941.46PAVEMENT MANAGEMENT B/S RETAINED PERCENTAGEASTECH 3,729.21-CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDI 15,102.67WATER UTILITY BALANCE SHEET RETAINED PERCENTAGE 13,316.21CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDI 79,631.13 33.94COMMUNICATIONS/GV REIMBURSEABL TELEPHONEAT&T 33.94 64.08CLEANING/DEBRIS REMOVAL CLEANING/WASTE REMOVAL SERVICEATOMIC RECYCLING 193.75VEHICLE MAINTENANCE G&A CLEANING/WASTE REMOVAL SERVICE 257.84GENERAL REPAIR CLEANING/WASTE REMOVAL SERVICE 64.08WATER UTILITY G&A CLEANING/WASTE REMOVAL SERVICE 579.75 15.00SUMMER FIELDTRIPS PROGRAM REVENUEBAKALARS, SUE 15.00 132.26POLICE G & A SUBSISTENCE SUPPLIESBARKER, BOB COMPANY 132.26 74.80PARK AND RECREATION BALANCE SH INVENTORYBATTERIES PLUS 74.80 1,400.00GO BONDS-FIRE STATIONS G&A RENTAL BUILDINGSBELT LINE PROPERTIES INC 1,400.00 96.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESBOBIER, HEIDI 96.00 5,416.50ENGINEERING G & A ENGINEERING SERVICESBOLTON & MENK INC 5,416.50 420.52POLICE G & A OPERATIONAL SUPPLIESBOUND TREE MEDICAL, LLC 420.52 25,836.71GO BONDS-FIRE STATIONS G&A LANDBRAUN INTERTEC CORPORATION 25,836.71 8,500.00ESCROWSPMC ESCROWBROTHERS, EDNA 8,500.00 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 4 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 4Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 81.24NEIGHBORHOOD ASSOCIATION GRANT OTHER CONTRACTUAL SERVICESBROWNDALE NEIGHBORHOOD ASSOCIA 81.24 211.19PATCHING-PERMANENT OTHER IMPROVEMENT SUPPLIESBRYAN ROCK PRODUCTS INC 211.19 267.56REILLY BUDGET EQUIPMENT PARTSCALGON CARBON CORP 267.56 200.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESCAMERON, DENNY 200.00 1,186.32IT G & A EQUIPMENT MTCE SERVICECARTRIDGE CARE 1,186.32 1,242.62-SOLID WASTE BALANCE SHEET DUE TO OTHER GOVTSCASCADE ENGINEERING 19,317.10SOLID WASTE COLLECTIONS OTHER 18,074.48 5,546.43TECHNOLOGY REPLACEMENT OFFICE EQUIPMENTCDW GOVERNMENT INC 5,546.43 6,550.26DISCOUNT LOAN PROGRAM OTHER CONTRACTUAL SERVICESCENTER ENERGY & ENVIRONMENT 2,220.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICES 9,617.00TRANSFORMATION LOAN OTHER CONTRACTUAL SERVICES 18,387.26 352.92FACILITY OPERATIONS HEATING GASCENTERPOINT ENERGY 443.84PARK MAINTENANCE G & A HEATING GAS 33.22WESTWOOD G & A HEATING GAS 40.86NATURALIST PROGRAMMER HEATING GAS 2,476.61WATER UTILITY G&A HEATING GAS 30.85REILLY G & A HEATING GAS 61.05SEWER UTILITY G&A ELECTRIC SERVICE 3,439.35 311.50FACILITY OPERATIONS HEATING GASCENTERPOINT ENERGY SERVICES IN 11,388.45ENTERPRISE G & A HEATING GAS 11,699.95 15,200.00EMPLOYEE FLEXIBLE SPENDING B/S OTHER RETIREMENTCENTRAL PENSION FUND 15,200.00 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 5 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 5Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 109.56WATER UTILITY G&A GENERAL CUSTOMERSCIHOSKI, RICHARD 109.56 115.56-GENERAL FUND BALANCE SHEET DUE TO OTHER GOVTSCITIZENS INDEPENDENT BANK 51.20ADMINISTRATION G & A POSTAGE 150.00HUMAN RESOURCES RECOGNITION 100.00HUMAN RESOURCES SUBSCRIPTIONS/MEMBERSHIPS 396.47NETWORK SUPPORT SERVICES GENERAL SUPPLIES 106.10NETWORK SUPPORT SERVICES TRAINING 355.00RESEARCH & DEVELOPMENT GENERAL SUPPLIES 614.00ASSESSING G & A TRAINING 76.00COMM DEV PLANNING G & A TRAINING 47.16POLICE G & A OPERATIONAL SUPPLIES 85.81POLICE G & A OFFICE EQUIPMENT 42.90POLICE G & A POLICE EQUIPMENT 1,410.75NEIGHBORHOOD OUTREACH OPERATIONAL SUPPLIES 136.30SUPPORT SERVICES OTHER CONTRACTUAL SERVICES 526.80OPERATIONSGENERAL SUPPLIES 385.66OPERATIONSFIRE PREVENTION SUPPLIES 40.85OPERATIONSEQUIPMENT PARTS 57.03OPERATIONSTRAINING 39.90INSPECTIONS G & A GENERAL SUPPLIES 413.56PARK AND RECREATION BALANCE SH INVENTORY 123.23-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTS 1,500.00ADULT PROGRAMS OTHER CONTRACTUAL SERVICES 12.34PERFORMING ARTS GENERAL SUPPLIES 911.24SUMMER PLAYGROUNDS GENERAL SUPPLIES 765.23SUMMER FIELDTRIPS GENERAL SUPPLIES 430.13YOUTH PROGRAMS GENERAL SUPPLIES 58.96PARK MAINTENANCE G & A GENERAL SUPPLIES 16.45BRICK HOUSE (1324)OTHER IMPROVEMENT SUPPLIES 16.44WW RENTAL HOUSE (1322)OTHER IMPROVEMENT SUPPLIES 111.30WESTWOOD G & A SMALL TOOLS 23.58OTHER SUMMER CAMPS GENERAL SUPPLIES 195.58AQUATIC PARK MAINTENANCE GENERAL SUPPLIES 205.24LIFEGUARDINGGENERAL SUPPLIES 546.56VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 19.00-CABLE TV BALANCE SHEET DUE TO OTHER GOVTS 413.33TV PRODUCTION GENERAL SUPPLIES 23.93PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 215.00WATER UTILITY G&A IMPROVEMENTS OTHER THAN BUILDI City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 6 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 6Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 10,223.01 77.95WATER UTILITY G&A GENERAL CUSTOMERSCLARK, ELIZABETH 77.95 3,270.38PLAYGROUND EQUIPMENT MAINTENAN OTHER IMPROVEMENT SUPPLIESCLEARWATER RECREATION 3,270.38 384.00GROUP ADMISSION PROGRAM REVENUECLUB CARE 384.00 1,807.85CONCESSIONSCONCESSION SUPPLIESCOCA-COLA BOTTLING CO 1,807.85 159.95IT G & A DATACOMMUNICATIONSCOMCAST 159.95 6,697.75OAK HILL SPLASH PAD OTHER CONTRACTUAL SERVICESCONCRETE ETC INC 555.00PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 7,252.75 50.00SPECIAL PROGRAMS PROGRAM REVENUECONTROIS, JOHN 50.00 31,682.50PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURESCOOL AIR MECHANICAL INC 31,682.50 2,378.00WATER UTILITY G&A OTHER IMPROVEMENT SERVICECOPPIN PLUMBING 2,378.00 52.70WATER UTILITY G&A GENERAL CUSTOMERSCREGAN, SHARON 52.70 415.00-GO BONDS-FIRE STATIONS BAL S RETAINED PERCENTAGECROSSROAD CONSTRUCTION INC 8,300.00GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURES 7,885.00 173.87POLICE G & A SUBSISTENCE SUPPLIESCUB FOODS 18.67ERUTRAINING 192.54 103.20INSPECTIONS G & A PLUMBINGCULLIGAN City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 7 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 7Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 103.20 561.00SOFTBALLOTHER CONTRACTUAL SERVICESCURRAN-MOORE, KIM 561.00 184.61PARK AND RECREATION BALANCE SH INVENTORYCUSTOM HOSE TECH INC 184.61 1,016.05WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIESDAKOTA SUPPLY GROUP 1,016.05 74.34GENERAL BUILDING MAINTENANCE CLEANING/WASTE REMOVAL SUPPLYDALCO ENTERPRISES INC 147.22BUILDING MAINTENANCE GENERAL SUPPLIES 221.56 68.86PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDIDART PORTABLE STORAGE INC 68.86 4,975.08INSPECTIONS G & A DUE TO OTHER GOVTSDEPT LABOR & INDUSTRY 4,975.08 561.00SOFTBALLOTHER CONTRACTUAL SERVICESDINGMANN, ROSEMARY 561.00 1,471.05SPLASH PAD MAINT - Oak Hill Pk OTHER CONTRACTUAL SERVICESDJ ELECTRIC SERVICES INC 1,471.05 7,166.95GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURESDLR GROUP KKE 7,166.95 4,558.82SUPPORT SERVICES G&A POSTAGEDO-GOOD.BIZ INC 9,769.13WATER UTILITY G&A PRINTING & PUBLISHING 14,327.95 112.34WATER UTILITY G&A GENERAL CUSTOMERSDOLD, BEN 112.34 231.18POLICE G & A OPERATIONAL SUPPLIESDREIER, LORI A 231.18 32.15BUILDING MAINTENANCE GENERAL SUPPLIESDRENNEN, CASEY 32.15 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 8 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 8Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 15.00SUMMER FIELDTRIPS PROGRAM REVENUEDUNKLEY, GRACE 15.00 130.05WATER UTILITY G&A GENERAL CUSTOMERSEDINA REALTY 130.05 183.93AQUATIC PARK MAINTENANCE EQUIPMENT MTCE SERVICEELECTRIC MOTOR REPAIR 183.93 15,966.39SEWER UTILITY G&A OTHERELECTRIC PUMP INC 15,966.39 1,963.52PARK AND RECREATION BALANCE SH INVENTORYEMERGENCY AUTOMOTIVE TECHNOLOG 1,963.52 450.00ADMINISTRATION G & A TRAININGEMPLOYEE STRATEGIES INC 450.00 42.62PARK AND RECREATION BALANCE SH INVENTORYENVIRONMENTAL EQUIPMENT & SERV 42.62 3,767.40PARK AND RECREATION BALANCE SH INVENTORYEQUIPMENT DISTRIBUTION MANAGEM 3,767.40 5,168.00NETWORK SUPPORT SERVICES GENERAL PROFESSIONAL SERVICESESP SYSTEMS PROFESSIONALS INC 5,168.00 14,166.29STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEESS BROTHERS & SONS INC 14,166.29 140.75STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEEULL'S MANUFACTURING CO 140.75 34,684.92SOLID WASTE COLLECTIONS RECYCLING SERVICEEUREKA RECYCLING 34,684.92 3,452.65IT G & A OFFICE EQUIPMENTEXECUTIVE OFFICE CONCEPTS LTD 3,452.65 214.85PARK AND RECREATION BALANCE SH INVENTORYFACTORY MOTOR PARTS CO 214.85 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 9 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 9Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 9.16PARK AND RECREATION BALANCE SH INVENTORYFASTENAL COMPANY 29.41PARK EQUIPMENT MAINTENANCE GENERAL SUPPLIES 38.57 118.39ASSESSING G & A MILEAGE-PERSONAL CARFECHNER, MARTY 118.39 50.00INSPECTIONS G & A DOGSFERGUSON, CAROL 50.00 2,500.00PERFORMING ARTS OTHER CONTRACTUAL SERVICESFIFTYSOMETHIN 2,500.00 14,784.00PERMANENT MARKINGS OTHER IMPROVEMENT SUPPLIESFLINT TRADING INC 14,784.00 237.75JAIL MTCE BLDG/STRUCTURE SUPPLIESFLOYD TOTAL SECURITY 139.46WATER UTILITY G&A GENERAL SUPPLIES 822.68SEWER UTILITY G&A GENERAL SUPPLIES 1,199.89 12,777.00-GO BONDS-FIRE STATIONS BAL S RETAINED PERCENTAGEFRATTALONE COMPANIES INC 255,540.18GO BONDS-FIRE STATIONS G&A LAND 242,763.18 176,049.99PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDIFRIEDGES LANDSCAPING INC 176,049.99 255.00SOFTBALLOTHER CONTRACTUAL SERVICESFRIES, JAMES 255.00 206.80GENERAL REPAIR EQUIPMENT MTCE SERVICEGENERAL SAFETY EQUIPMENT CORP 206.80 64.00-GO BONDS-FIRE STATIONS BAL S RETAINED PERCENTAGEGENERAL SPRINKLER CORP 1,280.00GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURES 1,216.00 19,928.14AQUATIC PARK MAINTENANCE BUILDING MTCE SERVICEGLOBAL SPECIALTY CONTRACTORS I 21,677.91PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 41,606.05 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 10 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 10Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 4,371.72EMPLOYEE FLEXIBLE SPENDING B/S LONG TERM CARE INSURGLTC PREMIUM PAYMENTS 4,371.72 20.00BALLFIELDSRENT REVENUEGOLDBERGER, JILL 20.00 43.00INSPECTIONS G & A ELECTRICALGOLDEN VALLEY HEATING & AIR 60.00INSPECTIONS G & A MECHANICAL 103.00 163.95GENERAL BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIESGRAINGER INC, WW 517.01SEWER UTILITY G&A EQUIPMENT MTCE SERVICE 680.96 372.85REFORESTATION FUND OTHER CONTRACTUAL SERVICESGRAY & BARBARA NASH, CATHERINE 372.85 321.19TECHNOLOGY REPLACEMENT OFFICE EQUIPMENTGRAYBAR ELECTRIC CO 321.19 1,948.41IRRIGATION MAINTENANCE OTHER CONTRACTUAL SERVICESGREEN ACRES SPRINKLER CO 1,948.41 7,150.00STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEGROTH SEWER & WATER 7,150.00 408.00SOFTBALLOTHER CONTRACTUAL SERVICESHAMILTON, MIKE 408.00 80.00YOUTH PROGRAMS PROGRAM REVENUEHAMPTON, JANE 80.00 675.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESHANSEN, ERIC 675.00 582.45-GO BONDS-FIRE STATIONS BAL S RETAINED PERCENTAGEHANSON STRUCTURAL PRECAST INC 11,649.00GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURES 11,066.55 50.00RENTALRENT REVENUEHARRIS, SHAKEEA 50.00 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 11 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 11Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 3,594.46AQUATIC PARK MAINTENANCE GENERAL SUPPLIESHAWKINS INC 4,165.80WATER UTILITY G&A OPERATIONAL SUPPLIES 7,760.26 204.00SOFTBALLOTHER CONTRACTUAL SERVICESHENDERSON, TRACY 204.00 534.38IT G & A COMPUTER SERVICESHENNEPIN COUNTY INFO TECH 800.00OPERATIONSRADIO COMMUNICATIONS 256.00OPERATIONSEMERGENCY PREPAREDNESS 1,590.38 5,964.00OPERATIONSTRAININGHENNEPIN COUNTY MEDICAL CENTER 5,964.00 1,044.50WATER UTILITY G&A OTHER CONTRACTUAL SERVICESHENNEPIN COUNTY SENTENCING TO 1,044.50SEWER UTILITY G&A OTHER CONTRACTUAL SERVICES 2,089.00STORM WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 4,178.00 5,222.31POLICE G & A SUBSISTENCE SERVICEHENNEPIN COUNTY TREASURER 5,222.31 79.97REFORESTATION FUND OTHER CONTRACTUAL SERVICESHENRICKSON, KATHLEEN 79.97 1,408.69INSPECTIONS G & A BUILDINGHOGAN, BRIAN 1,408.69 34.03GRAFFITI CONTROL OTHER IMPROVEMENT SUPPLIESHOME DEPOT CREDIT SERVICES 102.29PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 136.32 10.79OTHER SUMMER CAMPS GENERAL SUPPLIESHOME DEPOT CREDIT SRVCS 10.79 100.00VOLLEYBALLOTHER CONTRACTUAL SERVICESHOWES, JEFFREY 433.50KICKBALLOTHER CONTRACTUAL SERVICES 175.00SOFTBALLOTHER CONTRACTUAL SERVICES 708.50 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 12 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 12Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 150.00VOLLEYBALLOTHER CONTRACTUAL SERVICESHOWES, JESSICA 150.00 178.50SOFTBALLOTHER CONTRACTUAL SERVICESHOWES, KRISTINE 178.50 399.00HUMAN RESOURCES TRAININGHR WEB ADVISOR 399.00 600.00IT G & A COMPUTER SERVICESHRGREEN 600.00 107.76WATER UTILITY G&A EQUIPMENT MTCE SERVICEINDELCO 107.76 817.59PARK GROUNDS MAINTENANCE BLDG/STRUCTURE SUPPLIESINDEPENDENT BLACK DIRT CO 817.59 104.20ADMINISTRATION G & A GENERAL SUPPLIESINNOVATIVE OFFICE SOLUTIONS 104.20 7,565.18IT G & A TELEPHONEINTEGRA TELECOM 7,565.18 136.61PARK AND RECREATION BALANCE SH INVENTORYINVER GROVE FORD 136.61 120.06STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEJ & F REDDY RENTS .88STORM WATER UTILITY G&A BANK CHARGES/CREDIT CD FEES 120.94 17.30PARK MAINTENANCE G & A GENERAL SUPPLIESJERRY'S MIRACLE MILE 55.77STORM WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 73.07 373.11IRRIGATION MAINTENANCE GENERAL SUPPLIESJOHN DEERE LANDSCAPES/LESCO 373.11 861.45EMPLOYEE FLEX SPEND G&A TUITIONJOHNSON, CARRIELEA 861.45 50.00VOLLEYBALLOTHER CONTRACTUAL SERVICESJOHNSON, SUSAN City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 13 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 13Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 575.00KICKBALLOTHER CONTRACTUAL SERVICES 625.00 35.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESKAMSTRA, DORIS 35.00 74.73REFORESTATION FUND OTHER CONTRACTUAL SERVICESKASHTAN, JUDITH 74.73 489.00SOFTBALLOTHER CONTRACTUAL SERVICESKAUFMAN, TERRY 489.00 15.16WATER UTILITY G&A GENERAL CUSTOMERSKELLER, JASMINE Z 276.92EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTS 292.08 1,139.52ESCROWSGRECO DEVELOP/WOODDALE POINTEKENNEDY & GRAVEN 126.00GREENSBORO HIA LEGAL SERVICES 1,265.52 162.50GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESKEUNING, ARNOLD 162.50 1,376.80TENNISOTHER CONTRACTUAL SERVICESKIDS TEAM TENNIS LLC 1,376.80 110.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESKISSIN, SOPHIA 110.00 2,800.00WATER UTILITY G&A OTHER CONTRACTUAL SERVICESKLM ENGINEERING INC. 2,800.00 255.00SOFTBALLOTHER CONTRACTUAL SERVICESKUBES, JON 255.00 103.35ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPSLEAGUE OF MN CITIES 103.35 12,193.06UNINSURED LOSS G&A UNINSURED LOSSLEAGUE OF MN CITIES INSURANCE 12,193.06 64.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESLENTNER, LAURA City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 14 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 14Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 64.00 473.83EMPLOYEE FLEX SPEND G&A TUITIONLEWIS, DON 473.83 352.53TECHNOLOGY REPLACEMENT OFFICE EQUIPMENTLIND ELECTRONICS INC 352.53 15.00SUMMER FIELDTRIPS PROGRAM REVENUELODERMEIER, MARILYN 15.00 426.95POLICE G & A OFFICE SUPPLIESLOFFLER COMPANIES 742.78POLICE G & A OFFICE EQUIPMENT 1,169.73 46,790.40IT G & A COMPUTER SERVICESLOGIS 1,375.88TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 48,166.28 52.91INSTALLATIONOTHER IMPROVEMENT SUPPLIESM-R SIGN CO INC 1,397.68FABRICATIONOTHER IMPROVEMENT SUPPLIES 1,450.59 1,038.63HUMAN RESOURCES GENERAL PROFESSIONAL SERVICESMADDEN GALANTER HANSEN LLP 1,038.63 235.13PARK GROUNDS MAINTENANCE OTHER IMPROVEMENT SUPPLIESMAGNUSON SOD/HAAG SERVICES INC 235.13 90.27REFORESTATION FUND OTHER CONTRACTUAL SERVICESMAHONEY, COLLEEN 90.27 200.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESMANDELBAUM, RONALD 200.00 162.50GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESMARTIN, LINDA 162.50 612.00SOFTBALLOTHER CONTRACTUAL SERVICESMCBRIDE, STEPHEN 612.00 67.41WATER UTILITY G&A GENERAL CUSTOMERSMCCAMBRIDGE, CAM City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 15 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 15Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 67.41 42.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESMCGREGOR-HANNAH, MAREN 42.00 8.00GROUP ADMISSION PROGRAM REVENUEMEADOW LAKE ADVENTURE CLUB 8.00 8,226.62SEWER UTILITY G&A GENERAL CUSTOMERSMETHODIST HOSPITAL 8,226.62 4,415.40INSPECTIONS G & A DUE TO OTHER GOVTSMETROPOLITAN COUNCIL 4,415.40 2,096.86PATCHING-PERMANENT OTHER IMPROVEMENT SUPPLIESMIDWEST ASPHALT CORP 2,096.86 700.00WATER UTILITY G&A OTHER CONTRACTUAL SERVICESMIDWEST TESTING LLC 700.00 2,000.00ESCROWSPMC ESCROWMOH 1 LLC 2,000.00 320.00SOFTBALLOTHER CONTRACTUAL SERVICESMRPA 320.00 1,000.00ESCROWSPMC ESCROWMS RELOCATION 1,000.00 363.82PARK AND RECREATION BALANCE SH INVENTORYMTI DISTRIBUTING CO 124.96PARK MAINTENANCE G & A OTHER 488.78 250.00REILLY BUDGET OTHER CONTRACTUAL SERVICESMVTL LABORATORIES 250.00 350.00-GO BONDS-FIRE STATIONS BAL S RETAINED PERCENTAGENAC MECHANICAL & ELECTRICAL SE 7,000.00GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURES 6,650.00 28.98GENERAL BUILDING MAINTENANCE EQUIPMENT PARTSNAPA (GENUINE PARTS CO) 954.22PARK AND RECREATION BALANCE SH INVENTORY City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 16 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 16Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 180.62TREE MAINTENANCE GENERAL SUPPLIES 17.94GENERAL REPAIR GENERAL SUPPLIES 1,181.76 51.51ASSESSING G & A MILEAGE-PERSONAL CARNATHANSON, BRIDGET 51.51 225.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESNESSET ARCHITECTURE INC 225.00 41.73AQUATIC PARK MAINTENANCE GENERAL SUPPLIESNORTHERN AIRE SWIMMING POOLS 41.73 20.00HUMAN RESOURCES TRAININGNORTHSTAR CHAPTER APA 20.00 45.00SUMMER FIELDTRIPS PROGRAM REVENUEO'GARA, ELLEN 45.00 66.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESOBERSTAR, KATIE 66.00 134.81ADMINISTRATION G & A OFFICE SUPPLIESOFFICE DEPOT 114.47HUMAN RESOURCES OFFICE SUPPLIES 99.96SUPPORT SERVICES G&A EQUIPMENT MTCE SERVICE 194.10POLICE G & A OFFICE SUPPLIES 31.27POLICE G & A OPERATIONAL SUPPLIES 113.17INSPECTIONS G & A GENERAL SUPPLIES 152.35ORGANIZED REC G & A OFFICE SUPPLIES 840.13 120.00POLICE G & A LICENSESOFFICE OF THE SECRETARY OF STA 120.00 33.80INSPECTIONS G & A BUILDINGOLSON, JOHN 33.80 296.58PORTABLE TOILETS/FIELD MAINT OTHER CONTRACTUAL SERVICESON SITE SANITATION 296.58 181.00EMPLOYEE FLEX SPEND G&A GENERAL PROFESSIONAL SERVICESOPTUM HEALTH FINANCIAL SERVICE 181.00 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 17 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 17Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 64.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESPARR, MELISSA 64.00 621.00ELECTRICAL SYSTEM MTCE BUILDING MTCE SERVICEPARSONS ELECTRIC 621.00 150.00HOLIDAY PROGRAMS OTHER CONTRACTUAL SERVICESPARTY UNIT 150.00 200.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESPETERSON, GLENN 200.00 318.43ROUTINE MAINTENANCE OTHER CONTRACTUAL SERVICESPHILIP'S TREE CARE INC 318.43 897.75WATER UTILITY G&A EQUIPMENT MTCE SERVICEPLANT & FLANGED EQUIPMENT 897.75 88.00GROUP ADMISSION PROGRAM REVENUEPLAYWORKS 88.00 71.63INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESPOLK, MARLA 71.63 332.77PARK AND RECREATION BALANCE SH INVENTORYPOMP'S TIRE SERVICE INC 332.77 424.57WATER UTILITY G&A POSTAGEPOSTMASTER - PERMIT #603 424.57SEWER UTILITY G&A POSTAGE 424.56SOLID WASTE COLLECTIONS POSTAGE 424.56STORM WATER UTILITY G&A POSTAGE 1,698.26 4.00PARK AND REC G&A PROGRAM REVENUEPRIMROSE OF MAPLE GROVE 4.00 80.00FACILITY ROOM RENTAL RENT REVENUEPULMONARY HYPERTENSION ASSOC 80.00 10,147.26WATER UTILITY G&A OTHER IMPROVEMENT SERVICEQ3 CONTRACTING 1,407.00SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 18 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 18Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 11,554.26 1,500.00ADMINISTRATION G & A GENERAL PROFESSIONAL SERVICESQUALITY BUSINESS SOLUTIONS 1,500.00 107.80PARK AND RECREATION BALANCE SH INVENTORYQUEST ENGINEERING INC 107.80 150.88VEHICLE MAINTENANCE G&A POSTAGEQUICKSILVER EXPRESS COURIER 150.88 5,145.00PARK EQUIPMENT MAINTENANCE OTHER CONTRACTUAL SERVICESQUIRING EXCAVATING LLC 5,145.00 2,559.49FACILITY OPERATIONS GARBAGE/REFUSE SERVICERANDY'S SANITATION INC 1,299.51REC CENTER BUILDING GARBAGE/REFUSE SERVICE 982.77SOLID WASTE COLLECTIONS GARBAGE/REFUSE SERVICE 4,841.77 35.54WATER UTILITY G&A POSTAGERAPID GRAPHICS & MAILING 35.54SEWER UTILITY G&A POSTAGE 35.53SOLID WASTE COLLECTIONS POSTAGE 35.53STORM WATER UTILITY G&A POSTAGE 142.14 36.19WATER UTILITY G&A GENERAL CUSTOMERSREDMAN, MANDI 36.19 25.44POLICE G & A OFFICE SUPPLIESREGENCY OFFICE PRODUCTS LLC 25.44 11,081.52SOLID WASTE COLLECTIONS OTHERREHRIG PACIFIC CO 11,081.52 29.89PARK AND RECREATION BALANCE SH INVENTORYRIGID HITCH INC 29.89 50.00SPECIAL PROGRAMS PROGRAM REVENUEROBERTS, BRUCE 50.00 576.09ORGANIZED REC G & A MILEAGE-PERSONAL CARROSA, NATE 348.82AQUATIC PARK MAINTENANCE GENERAL SUPPLIES City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 19 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 19Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 924.91 261.00ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPSROTARY CLUB OF SLP 85.00POLICE G & A SUBSCRIPTIONS/MEMBERSHIPS 195.00POLICE G & A MEETING EXPENSE 541.00 513.83EMPLOYEE FLEX SPEND G&A TUITIONRUD, JOSEPH 513.83 112.50GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESRUPLIN, THOMAS 112.50 150.00PERFORMING ARTS GENERAL SUPPLIESSANSBY, SCOTT 150.00 200.00GREEN REMODELING PROGRAM OTHER CONTRACTUAL SERVICESSCHAUB, CAROL 200.00 1,670.80GENERAL REPAIR EQUIPMENT MTCE SERVICESCHELEN-GRAY AUTO ELECTRIC 1,670.80 846.24PLAYGROUND EQUIPMENT MAINTENAN OTHER IMPROVEMENT SUPPLIESSCHERER BROS. LUMBER CO. 4,650.57PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 5,496.81 595.83GENERAL BUILDING MAINTENANCE GENERAL PROFESSIONAL SERVICESSCHINDLER ELEVATOR CORP 595.83 6.32-GENERAL FUND BALANCE SHEET DUE TO OTHER GOVTSSCHWAAB INC 98.30OPERATIONSOFFICE SUPPLIES 91.98 14,825.00PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDISECURE SYSTEMS INC 14,825.00 20,993.57CE INSPECTION IMPROVEMENTS OTHER THAN BUILDISEH 20,993.57 225.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESSHELTER ARCHITECTURE 225.00 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 20 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 20Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 237.76PARK EQUIPMENT MAINTENANCE GENERAL SUPPLIESSHERWIN WILLIAMS 237.76 1,861.68PAINTINGOTHER IMPROVEMENT SUPPLIESSHERWIN-WILLIAMS CO 67.86PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 1,929.54 306.97PARK AND RECREATION BALANCE SH INVENTORYSIWEK LUMBER & MILLWORK INC 306.97 596.67IT G & A DATACOMMUNICATIONSSPRINT 596.67 3.25PARK EQUIPMENT MAINTENANCE GENERAL SUPPLIESSPS COMPANIES INC 45.92WATER UTILITY G&A GENERAL SUPPLIES 26.54WATER UTILITY G&A BLDG/STRUCTURE SUPPLIES 75.71 312.15ENGINEERING G & A ENGINEERING SERVICESSRF CONSULTING GROUP INC 2,895.42CE INSPECTION IMPROVEMENTS OTHER THAN BUILDI 3,207.57 5,682.00MHFAOTHER CONTRACTUAL SERVICESST LOUIS PARK HOUSING AUTHORIT 5,682.00 248.00DAILY ADMISSION PROGRAM REVENUEST LOUIS PARK LIONS 248.00 1,448.00PLAYGROUND EQUIPMENT MAINTENAN OTHER CONTRACTUAL SERVICESSTANDARD SIDEWALK INC 1,448.00 437.10WESTWOOD G & A EQUIPMENT MTCE SERVICESTANLEY CONVERGENT SECURITY SO 437.10 9,505.40-GO BONDS-FIRE STATIONS BAL S RETAINED PERCENTAGESTEENBERG-WATRUD CONSTRUCTION 190,108.00GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURES 180,602.60 246.37WESTWOOD G & A OPERATIONAL SUPPLIESSTITCHIN POST 246.37 77.80INSPECTIONS G & A BUILDINGSTORM GUARD City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 21 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 21Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 77.80 75.07GENERAL REPAIR GENERAL SUPPLIESSTREICHER'S 75.07 4,395.00REILLY BUDGET GENERAL PROFESSIONAL SERVICESSUMMIT ENVIROSOLUTIONS INC 4,395.00 102.96ADMINISTRATION G & A LEGAL NOTICESSUN NEWSPAPERS 102.96 80,667.41SUNSET RIDGE OTHER CONTRACTUAL SERVICESSUNSET RIDGE CONDOMINIUM ASSN 80,667.41 63.86SUMMER GRADE 4-5 GENERAL SUPPLIESTARGET BANK 63.86 103.20ADMINISTRATION G & A OTHER CONTRACTUAL SERVICESTELELANGUAGE INC 103.20 243.66INSTRUCTIONAL SKATING LESSONS EQUIPMENT MTCE SERVICETENNANT SALES AND SERVICE CO. 243.66 97.00BUILDING MAINTENANCE BUILDING MTCE SERVICETERMINIX INT 97.00 45.96ADMINISTRATION G & A LONG TERM DISABILITYTHE HARTFORD - PRIORITY ACCOUN 56.45HUMAN RESOURCES LONG TERM DISABILITY 16.55COMM & MARKETING G & A LONG TERM DISABILITY 42.64IT G & A LONG TERM DISABILITY 35.66ASSESSING G & A LONG TERM DISABILITY 68.33FINANCE G & A LONG TERM DISABILITY 115.75COMM DEV G & A LONG TERM DISABILITY 123.78POLICE G & A LONG TERM DISABILITY 78.55OPERATIONSLONG TERM DISABILITY 59.11INSPECTIONS G & A LONG TERM DISABILITY 44.59PUBLIC WORKS G & A LONG TERM DISABILITY 58.53ENGINEERING G & A LONG TERM DISABILITY 20.94PUBLIC WORKS OPS G & A LONG TERM DISABILITY 70.58ORGANIZED REC G & A LONG TERM DISABILITY 20.94PARK MAINTENANCE G & A LONG TERM DISABILITY 17.46ENVIRONMENTAL G & A LONG TERM DISABILITY City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 22 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 22Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 17.46WESTWOOD G & A LONG TERM DISABILITY 18.46REC CENTER/AQUATIC PARK SAL LONG TERM DISABILITY 17.96VEHICLE MAINTENANCE G&A LONG TERM DISABILITY 16.97HOUSING REHAB G & A LONG TERM DISABILITY 20.94WATER UTILITY G&A LONG TERM DISABILITY 2,003.76EMPLOYEE FLEX SPEND G&A LONG TERM DISABILITY 2,971.37 1,500.00ERUTRAININGTHE TACTICAL EMS SCHOOL 1,500.00 64.00INSTRUCTIONAL SKATING LESSONS OTHER CONTRACTUAL SERVICESTHOMPSON, HOLLY 64.00 225.00-GO BONDS-FIRE STATIONS BAL S RETAINED PERCENTAGETHURNBECK STEEL FABRICATION IN 4,500.00GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURES 4,275.00 251.25ADMINISTRATION G & A OTHER CONTRACTUAL SERVICESTIMESAVER OFF SITE SECRETARIAL 251.25 152.45WATER UTILITY G&A GENERAL CUSTOMERSTOSIGNANT, LOU 152.45 395.00COUNTS AND STUDIES OTHER CONTRACTUAL SERVICESTRAFFIC DATA INC 395.00 255.00SOFTBALLOTHER CONTRACTUAL SERVICESTRAUTMANN, JOHN 255.00 102.00SOFTBALLOTHER CONTRACTUAL SERVICESTRAUTMANN, KYLE 102.00 2,636.14WESTWOOD G & A OTHER IMPROVEMENT SUPPLIESTREE TRUST 43,002.10PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 45,638.24 40.00YOUTH PROGRAMS PROGRAM REVENUETREMBLEY, SARAH 40.00 108.70PARK AND RECREATION BALANCE SH INVENTORYTRI STATE BOBCAT 108.70 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 23 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 23Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 177.01GENERAL BUILDING MAINTENANCE LANDSCAPING MATERIALSTRUGREEN - MTKA 5640 177.01 158.07SSD 1 G&A OTHER CONTRACTUAL SERVICESTWIN CITY OUTDOOR SERVICES INC 158.07 1,118.44GENERAL REPAIR EQUIPMENT MTCE SERVICEUNITED STATES TREASURY 2,249.56ACCIDENT REPAIR EQUIPMENT MTCE SERVICE 150.00EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTS 3,518.00 329.00EMPLOYEE FLEXIBLE SPENDING B/S UNITED WAYUNITED WAY OF MINNEAPOLIS AREA 329.00 195.00PARK MAINTENANCE G & A TRAININGUNIVERSITY OF MINNESOTA 195.00 120.00POLICE G & A OTHER CONTRACTUAL SERVICESUNO DOS TRES COMMUNICATIONS 120.00 105.58SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIESUPS STORE 105.58 392.23SUMMER FIELDTRIPS OTHER CONTRACTUAL SERVICESUSA INFLATABLES & MOONWALKS PA 392.23 555.72OPERATIONSTELEPHONEUSA MOBILITY WIRELESS INC 31.12WATER UTILITY G&A TELEPHONE 586.84 90.78HUMAN RESOURCES MILEAGE-PERSONAL CARVAIL, LORI 90.78 3,258.50WATER UTILITY G&A OTHER IMPROVEMENT SERVICEVALLEY-RICH CO INC 3,258.50 75.48ENVIRONMENTAL G & A MILEAGE-PERSONAL CARVAUGHAN, JIM 75.48 23,290.00GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURESVEIT & CO 23,290.00 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 24 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 24Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 210.64ENGINEERING G & A OPERATIONAL SUPPLIESVIKING INDUSTRIAL CTR 210.64 7,725.63SEWER UTILITY BALANCE SHEET RETAINED PERCENTAGEVISU-SEWER CLEAN & SEAL 7,725.63 211.53PARK AND RECREATION BALANCE SH INVENTORYWALSER CHRYSLER JEEP 211.53 4,993.06SOLID WASTE COLLECTIONS MOTOR FUELSWASTE MANAGEMENT OF WI-MN 58,802.62SOLID WASTE COLLECTIONS GARBAGE/REFUSE SERVICE 24,526.02SOLID WASTE COLLECTIONS YARD WASTE SERVICE 34,483.50SOLID WASTE DISPOSAL GARBAGE/REFUSE SERVICE 18,265.54SOLID WASTE DISPOSAL YARD WASTE SERVICE 141,070.74 586.50PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDIWASTE TECHNOLOGY INC 586.50 666.30WATER UTILITY G&A OTHER IMPROVEMENT SERVICEWATER CONSERVATION SERVICE INC 666.30 5,937.68CONCESSIONSCONCESSION SUPPLIESWATSON CO INC 5,937.68 2,204.00WATER UTILITY G&A EQUIPMENT MTCE SERVICEWEBER ELECTRIC 312.30WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 975.00SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 141.07STORM WATER UTILITY G&A BUILDING MTCE SERVICE 3,632.37 843.75OPERATIONSTRAININGWELCH, JENNIFER 843.75 8.90WATER UTILITY G&A GENERAL CUSTOMERSWILKE, PEGGY 8.90 23.09WATER UTILITY G&A GENERAL CUSTOMERSWILSON, HADLEY 23.09 314.39GENERAL REPAIR GENERAL SUPPLIESWIPERS & WIPES INC City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 25 8/10/2011CITY OF ST LOUIS PARK 6:37:02R55CKSUM LOG23000VO 25Page -Council Check Summary 8/5/2011 -7/23/2011 Vendor AmountBusiness Unit Object 314.39 300.00WATER UTILITY G&A GENERAL CUSTOMERSWOLFF, COREY 300.00 127.75SSD 1 G&A OTHER CONTRACTUAL SERVICESWOLNEY ELECTRIC LLC 127.75 12.50ORGANIZED REC G & A GENERAL SUPPLIESWRAP CITY GRAPHICS 45.00OFF-LEASH DOG PARK GENERAL SUPPLIES 225.72AQUATIC PARK MAINTENANCE GENERAL SUPPLIES 283.22 22.35OPERATIONSELECTRIC SERVICEXCEL ENERGY 5,004.17PARK MAINTENANCE G & A ELECTRIC SERVICE 5,026.52 23,605.07PARK AND RECREATION BALANCE SH INVENTORYYOCUM OIL CO INC 23,605.07 46.21SEWER UTILITY G&A SMALL TOOLSZACKS INC 46.21 52.07REFORESTATION FUND OTHER CONTRACTUAL SERVICESZOGG, WILLI 52.07 Report Totals 1,743,400.04 City Council Meeting of August 15, 2011 (Item No. 4f) Subject: Vendor Claims Page 26 Meeting Date: August 15, 2011 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: First Reading – Amendment to City Code Relating to Membership of Human Rights Commission. RECOMMENDED ACTION: Motion to approve First Reading of an ordinance amending the St. Louis Park City Code Section 2-212 concerning Human Rights Commission membership and to set Second Reading for September 6, 2011. POLICY CONSIDERATION: Does the City Council wish to amend City Code section 2-212 as recommended by the Human Rights Commission to reduce the size of the commission to a total of nine voting members? BACKGROUND: As required in City Code section 2-212, the HRC shall consist of eleven regular members and two youth members for a total of 13 commissioners. The HRC has had difficulty over the past several years in maintaining full membership in the commission. Staff researched other local human rights commissions with the following findings: Bloomington and Edina both have nine commissioners, Eden Prairie and Plymouth have seven members, Brooklyn Park has eleven members, Minnetonka and Hopkins do not currently have an HRC and Golden Valley only has three commissioners at this time. City staff and commission chair Mary Tomback met with Council at the June 27, 2011 study session to review the HRC 2011 Work Plan and 2010 Annual Report and discussed the possibility of reducing the number of commissioners. Council was receptive to the idea and asked the HRC to move forward with a recommendation. The HRC discussed the membership at the July 19, 2011 commission meeting. It was moved by Commissioner Glaab, seconded by Commissioner Tomback, to recommend that the City Council make the necessary changes in City Code to reflect a total of nine voting members (eight adults, one youth and one non-voting youth). The motion passed 5-0. FINANCIAL OR BUDGET CONSIDERATION: None VISION CONSIDERATION: None Attachments: Ordinance Amending Human Rights Commission Membership Prepared by: Marney Olson, Community Liaison Reviewed by: Nancy Stroth, City Clerk Approved by: Tom Harmening, City Manager City Council Meeting of August 15, 2011 (Item No. 8a) Page 2 Subject: First Reading – Amendment to City Code Relating to Membership of Human Rights Commission ORDINANCE NO. ____ - 11 AN ORDINANCE AMENDING THE ST. LOUIS PARK ORDINANCE CODE SECTIONS 2-212 CONCERNING HUMAN RIGHTS COMMISSION MEMBERSHIP THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK DOES ORDAIN: SECTION 1. The St. Louis Park Ordinance Code Section 2-212 is hereby amended by deleting stricken language and adding underscored language: Sec. 2-212. Membership; terms. (a) Advisory function; composition. The human rights commission shall be an advisory commission to the city council and shall consist of 11 eight regular members and two one voting youth members all appointed as set forth in this section. (b) Regular members. Ten Seven of the regular members of the human rights commission, at least one of whom shall be an attorney, shall be appointed by the city council for a three-year term. One regular member shall be appointed by and serve at the pleasure of the Board of Independent School District No. 283 for three-year terms unless such an appointment shall be sooner terminated by such board. Failure of such school board to appoint its member to serve on the commission shall in no way affect the validity of the proceedings of the commission. The terms of regular members shall run until December 31 of the year in which their terms expire and until a successor is appointed and qualified. Subsequent appointments shall be for three-year terms. In the event of a vacancy, the council shall appoint a person to complete the unexpired term. A member of the commission may be removed with or without cause by the city council. (c) Youth members. Two One voting youth members may be appointed by the city council and serve a term of one year. The council may also appoint another non-voting youth member to participate in all discussions and serve as a voting commissioner and be counted as part of quorum in the absence of the youth voting member. (d) Qualifications. Regular members of the human rights commission shall be qualified voters and residents of the city. The regular member appointed by the Board of Independent School District No. 283 of St. Louis Park shall also be a resident of the school district. A vacancy shall be deemed to exist if a member ceases to meet the residency requirements. SECTION 2. This Ordinance shall take effect fifteen days after its publication. First Reading August 15, 2011 Second Reading September 6, 2011 Date of Publication September 15, 2011 Date Ordinance takes effect September 30, 2011 Reviewed for Administration: Adopted by the City Council September 6, 2011 City Manager Mayor Attest: Approved as to form and execution: City Clerk City Attorney