Loading...
HomeMy WebLinkAbout2010/06/21 - ADMIN - Agenda Packets - City Council - RegularAGENDA JUNE 21, 2010 (Mayor Jacobs and CouncilMember Mavity out) 6:30 p.m. SPECIAL STUDY SESSION – Council Chambers Discussion Items 1. 6:30 p.m. Fire Stations Project Update Written Reports 2. Highway 7 / Louisiana Avenue Interchange Project Update 3. Project Report - W. 36th Street Streetscape Bridge Enhancement - Project 2010-2600 7:30 p.m. CITY COUNCIL MEETING – Council Chambers 1. Call to Order 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations 2a. Recognition of Catherine Tarsney. 2b. Tom Gasman Retirement Recognition. 2c. Friends of the Arts Presentation of Our Town: Verses and Voices Program 2d. Presentation of 2009 Financial Statements – Auditors Presentation 3. Approval of Minutes 3a. Study Session Minutes May 24, 2010 3b. City Council Minutes June 7, 2010 3c. Special Study Session Minutes June 7, 2010 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 Meeting of June 21, 2010 Special Study Session and City Council Agenda 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Sale and Issuance of Educational Facility Revenue Notes for the Groves Academy Project - Series 2010 RECOMMENDED ACTION: Motion to adopt Final Resolution “Authorizing the Issuance and Sale of Educational Facility Revenue Bonds (Groves Academy Project), Series 2010 in the Original Aggregate Principal Amount of $4,590,000; Approving the Form of and Authorizing the Execution and Delivery of the Bonds and Certain Related Documents; And Providing for the Security, Rights, and Remedies With Respect to the Bonds”. 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 June 21, 2010 Special Study Session and City Council Agenda 4. CONSENT CALENDAR 4a. Application to Municipal Agreement Program for Street Project - Highway 7 and Louisiana Avenue Intersection, Project No. 2012-0100 4b. Designating Polling Places and Appointing Election Judges for 2010 Elections 4c. Bid Tabulation: Maintenance Project - 2010 Random Concrete Repair Project – Project No. 2010-0003, 0004, & 0006 4d. Tom Gasman Retirement Resolution 4e. Approve Right of Way Purchase – Highway 7/Wooddale Interchange Project – Project No. 2004-1700 4f. Approval of Filing Planning Commission Minutes May 19, 2010 4g. Approval of 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: June 21, 2010 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: Fire Stations Project Update RECOMMENDED ACTION: No action is required. The purpose of the meeting is to provide an update on the fire station project and to discuss goals, questions and concerns of City Council with staff and KKE Architects. POLICY CONSIDERATION: Are the project goals consistent with City Council’s expectations? There are several more policy issues that relate to the fire station plans that will need to be decided by City Council in the future. Staff will be gathering information over the next few weeks to better describe and explain the issues, as well as present clear alternatives for City Council consideration. The specific future policy questions include: • Should “future” apparatus bay space be built now or planned as later additions? o No decision is needed on this item until the space needs analysis progresses, cost estimates are completed, and the budget impacts are better understood. • Should storage space for City records be built at one of these fire stations? o The City needs additional records storage space. This can be provided in a number of ways and at various sites. Staff will be reviewing alternatives to present to City Council. • Should storage space for elections equipment be built at one of the fire stations? o The MSC project provides space for elections equipment storage that meets the City’s need, but it does so in a location that may limit future office expansion within the building. Staff will consider other options for storing this equipment. • Should Oxford Street remain one-way? o This restriction has consequences for site access and circulation, such as adding return trips by fire trucks through the residential neighborhood and possibly reducing green space. BACKGROUND: Staff and KKE Architects will present to the City Council a summary of the site analysis, program review, goals, and initial issues that have been identified by the Fire Stations Working Group. A Fire Station Needs Assessment Study and Report completed by BKV Group in November 2006 verified staff’s general concerns that both fire stations have extensive building and operational deficiencies. From a long-term facilities planning perspective, City Council concluded that public funds would be most efficiently used through the construction of new facilities rather than renovating existing structures through extensive remodeling and additions. Special Study Session Meeting of June 21, 2010 Page 2 Subject: Fire Stations Project Update From 2007 to 2008 the City explored various site options and scenarios for building a single central fire station or two new fire stations. In 2009, the City Council concluded that building new fire stations in essentially the same locations as the existing stations would be the best solution. The sites are not perfect, which was understood at the time they were selected, and present several challenges for the design and construction, but staff is working to best meet the goals for these facilities. TOPICS TO DISCUSS: Staff and KKE Architects will provide an update to City Council on the initial design process. A short presentation will describe some fire station space needs changes that have been identified. The presentation will highlight the Fire Station Working Group’s site analysis and some of the broad goals for the project. KKE Architects will present a concept plan prepared for each station site. Finally, staff will share some policy issues identified during the design process that may need City Council direction later in the schematic design process. Space Needs Update: The review and update of fire station space needs is underway. Staff recognizes these stations are long-term investments for the community. The Fire Department is considering what will be needed not only today, but 20 years from now. Staff’s efforts so far has identified some additional space needs to include in the site planning process. An overview of the findings to date is shown in the attached “Space Needs Summary.” Site Analysis Update: Attached for your review is a summary of the site analysis and goals identified by the Fire Stations Working Group. The summary also includes “Concerns and Opportunities” from the neighbors’ perspective. The Working Group is also collecting input from other staff and departments. Update on Site Planning: The Working Group has reviewed many site design alternatives, is still evaluating concept site plans, and will explore more alternatives. However, the attached concept plans appear to be feasible and respond to several factors influencing the design. These will serve as the basis for preparing cost estimates and help inform how the project compares to the 2006 budget numbers. Staff and KKE Architects are now sharing the early concepts with City Council (and with the neighborhoods on June 24) in order to spark conversation and draw out concerns and questions to address as the designs progress. NEXT STEPS: • A neighborhood meeting will be held on Thursday, June 24 to review the concept plans for Northside Park, Fire Station No. 2, and Fire Station No. 1 at the Rec Center Banquet Room. The meeting announcement is attached for your review. • Staff will take the comments received from City Council and neighborhoods and incorporate them into the station planning process. • Another future City Council study session is planned for August. o Staff will have more information, clearer alternatives, and recommendations to present to City Council. Special Study Session Meeting of June 21, 2010 Page 3 Subject: Fire Stations Project Update o No cost estimates have been prepared, yet. The first cost estimates will be prepared and presented to City Council at this future study session. FINANCIAL OR BUDGET CONSIDERATION: Not applicable at this time VISION CONSIDERATION: Engaging the community in the design process, minimizing negative impacts of the stations on surrounding residents, designing energy efficient buildings that meet or exceed the City’s green building policy, and building an aesthetically pleasing building relate to all four Vision St. Louis Park Strategic directions. Attachments: Space Needs Summary (as of 2010-06-15) Preliminary Site Analysis, Goals, and Site Planning Summary Neighborhood Meeting Notice Prepared by: Sean Walther, Senior Planner Reviewed by: Luke Stemmer, Fire Chief Cindy Walsh, Parks and Recreation Director Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager Two New Fire StationsSt. Louis Park, MNMajor changesStation No. One - South SideFire Administration 4,957 GSF 3,818 GSFStation Administration1,659 GSF 1,918 GSFApparatus Area 12,426 GSF 14,529 GSF Includes 1 future bayStaff Support 6,755 GSF 6,600 GSFBuilding Support1,426 GSF 3,734 GSF Increased Mechanical SpaceSub Total27,222 GSF30,598 GSFStation No. Two - North SideFire Administration0 GSF0 GSFStation Administration1,731 GSF1,763 GSFApparatus Area7,877 GSF9,881 GSF Includes 1 future bayStaff Support4,010 GSF3,645 GSFBuilding Support1,117 GSF1,728 GSF Increased Mechanical SpaceSub Total14,735 GSF17016 GSFGrand Total41,956 GSF47,614 GSFAdditional Requested SpacesCity Storage2,000 NSFVoter Storage and Training1,000 NSFSub Total3,000 NSFBKV 2006 Space Needs Report10 Year ProjectionsKKE 2010 Space Needs Review20 Year ProjectionsSPACE NEEDS SUMMARYSpecial Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project UpdatePage 4 ST. LOUIS PARK |MISSION & COMMITMENTSSt. Louis Park is committed to being a connected and engaged community. St. Louis Park is committed to being a leader in environmental stewardship. St. Louis Park is committed to providing a well-maintained and diverse housing stock.St. Louis Park is committed to promoting and integrating arts, culture and community aesthetics in all City initiatives.Special Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project UpdatePage 5 BROAD STATION DESIGN GOALS Basic Fire Departmental Goals Solve space needs Resolve structural integrity concerns Resolve gender equity issues Provide accessibility at new stations Common Design Goals for Both Stations Eliminate sloped drives Eliminate backing conditions on public roadways Efficient solutions that improve operations & reduce cost Maximize opportunities for Fire Department, neighborhoods & parks o Avoid undue fire truck traffic in neighboring residential neighborhoods o Maximize green space o Design attractive buildings that fit the site and neighbrhood Special Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project UpdatePage 6 Special Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project Update Page 7 STATION 1: SITE CHALLENGES & ISSUES Wooddale Ave. is a major traffic artery. Long-range plans to potentially extend Wooddale Ave. to an overpass at Hwy 100. Oxford St. is one way (eastbound). Site access from the south and west requires passing through residential neighborhoods. Significant grade changes across the site o Goodrich Ave. is 10 feet above Wooddale Ave. Site is irregularly shaped and narrows in the middle Fire truck turning radii present challenges for access and maneuvering. Drive-through bays preferred. Stormwater solutions (likely to require underground system) Major neighborhood concerns include: o Buffer the station from the neighborhood – noise, lights, parking, etc. o Address training noise & smoke o Design sustainable site & building o Design a station that “fits in” with the neighborhood Special Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project UpdatePage 8 STATION 1 | CURRENT DESIGN DIRECTION Most fire response & return on Wooddale Ave. cul-de-sac to minimize traffic impacts on neighborhoodGarage bays set as far west as possible so trucks can maneuver on-site now & in the future.Three drive-through bays for largest & frequently used trucks. “Level” building approach and equipment aprons. Allows access to public and staff parking off of Wooddale Ave. More, but shorter, apparatus bays for less stacking of trucks. Limited use of Oxford St. No fire vehicle use of Goodrich Ave. Larger building elements are set into hill to reduce perceived height. Administration portions of the facility are visible from Wooddale Ave. Existing trees at South property line maintained as buffer. Public parking is adjacent to park for shared use. Building layout helps shelter neighborhood from training activities. Special Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project UpdatePage 9 Special Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project UpdatePage 10 STATION 2: SITE CHALLENGES & ISSUES Louisiana Ave. is a major traffic artery. o Traffic backs up from Cedar Lake Rd. & blocks current driveway. Station design should blend with park improvements. Design of park improvements is ongoing. Stormwater solutions (like to require underground system) High water table Significant grade change between Louisiana Ave. and the park. Making the station level with Louisiana Ave. creates grade issues between the station and neighboring park and Walgreens properties. Drive-through / dual-access bays preferred. Neighborhood concerns include: o Building impact on views o Design a flexible facility for changing & future needs o Provide a community meeting space o Provide new polling/voting location (to replace Eliot School)Special Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project UpdatePage 11 STATION 2 | CURRENT DESIGN DIRECTION Dual access to bays. Minimal sloping of drives, aprons and approaches. Single-storyo No stairs or elevator o Reduced height reduces impact on view Minimizes use of retaining walls compared to other options considered. Fits within current park concept plan. Access to Louisiana Ave. is as far north of Cedar Lake Road intersection as possible “Front door” presence on Louisiana Ave. Flexible enough to work with or without changes to current shared ingress/egress and parking easements with Walgreens Special Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project UpdatePage 12 Special Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project UpdatePage 13 STATION 2 | 06.2010 | NORTHSIDE PARK CONCEPT PLAN Provides 3 quality little league baseball fields Provides more off-street parking than today Locates parking lot in a visible location, near current parking demandConcession stand is central & remains in placeHockey rink eliminated for new fire station Tennis courts must stay in place (funding restriction) Shared stormwater management opportunity with the fire station Special Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project UpdatePage 14 PUBLIC MEETING INVITATION FFFIIIRRREEE SSSTTTAAATTTIIIOOONNNSSS RRREEEPPPLLLAAACCCEEEMMMEEENNNTTT PPPRRROOOJJJEEECCCTTT & NNNOOORRRTTTHHHSSSIIIDDDEEE PPPAAARRRKKK IIIMMMPPPRRROOOVVVEEEMMMEEENNNTTTSSS PLANNING Date: Thursday, June 24, 2010 Location: The Rec Center Banquet Room 3700 Monterey Drive Agenda: 6:00 p.m. - 7:15 p.m. Review Northside Park & Station #2 (2262 Louisiana Ave) 7:15 p.m. - 8:15 p.m. Review Station #1 (3752 Wooddale Ave) The City of St. Louis Park invites your input on initial site plans for two fire stations and Northside Park. The concept plans provide a general idea of the size and placement of the buildings, as well as traffic access and circulation for the sites. Please contact project coordinator Sean Walther at (952) 924-2574 or swalther@stlouispark.org if you have any questions.Special Study Session Meeting of June 21, 2010 (Item No. 1) Subject: Fire Station Project UpdatePage 15 Meeting Date: June 21, 2010 Agenda Item #: 2 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Highway 7 / Louisiana Avenue Interchange Project Update. RECOMMENDED ACTION: The purpose of this report is to update the Council on the planning and project development activities related to this project – Project No. 2012-0100. In particular, the report provides information on Phase 3 activities (Preliminary Design and Environmental Assessment) completed to date and on the Project Management Team’s (PMT) recommendation for a preferred concept. POLICY CONSIDERATION: None at this time. The PMT has evaluated both options and recommends pursuing Option 4 as the preferred option. BACKGROUND: History The City’s Capital Improvement Program (C.I.P.) indentifies the Hwy 7/Louisiana Avenue intersection as a priority improvement project. The proposed project will provide for the construction of a grade-separated interchange at Louisiana Avenue and Hwy 7. The project also includes pedestrian and bicycle friendly improvements along with re-configuration of the frontage roads in order to improve access, safety, and traffic flow for both the Hwy 7 corridor and Louisiana Avenue. This proposed improvement is essential in meeting long term transportation and safety needs of both Mn/DOT and the City. Concept Designs The Project Management Team (PMT) has evaluated 10 concept designs, 7 grade separated interchange designs and 3 at-grade intersection designs. At the conclusion of Phase 2 earlier this year, two concept designs (see attachments) remained as finalists for a preferred concept; Option 4, Button hook ramps with roundabouts and Option 6, the tight diamond design. Staff recommended that both concepts be carried into Phase 3 of the project development to further study both options to help quantify the right-of-way impacts and development opportunities that differ between the two options. The additional analysis would help finalize the decision on a preferred concept. RECENT ACTIVITIES: Phase 3 City Council approved a contract amendment with SEH, Inc. for the Phase 3 work on March 15, 2010. SEH began a detailed drainage study in early April to determine storm water needs for both concept options. SEH presented results of their study to the PMT at their May meeting showing that storm water needs for both options can be accommodated within the northeast and southeast Special Study Session Meeting of June 21, 2010 (Item No. 2) Page 2 Subject: Project Update – Hwy 7 Louisiana Ave Interchange Project – 2012-0100 quadrants of the new interchange designs. The storm water needs include storage for rainwater runoff to provide for rate control (ponding area to control runoff and then release at a controlled rate to reduce flooding potential downstream) and water quality treatment (pollution reduction). The findings of the study are significant because the property in the southwest quadrant of the interchange is not needed for storm water storage and can now be considered for development opportunities. Concurrent with the drainage study, Community Development, with assistance from SEH planners, began a right-of-way impact and land use analysis for each interchange option to make a comparison of development potential between the two. The land use analysis looked at remnant parcels available for development after considering right-of-way needs for the new interchange designs. Results from the analysis indicate the total development potential of Option 4 (Button Hook Ramp design) to be slightly greater than Option 6 (Tight Diamond design). Thus Option 4 appears to be more favorable from a redevelopment perspective than Option 6. Preferred Concept Based on results of the drainage study and the land use analysis, the members of the PMT and Community Development staff recommend Option 4, Button Hook Ramp with Roundabouts, as the preferred concept for the new interchange design. Should City Council agree with the PMT findings and recommendations, SEH will then focus efforts only on Option 4 and begin the detailed analysis of the environmental assessment process, geometric layout development, right-of-way needs, traffic modeling and intersection control evaluation. As part of the land use analysis, refinements/alternatives were developed for Option 4 by adjusting the locations of the ramps and roundabouts in the northeast and southwest quadrants of the interchange. These adjustments were made to maximize the size of the remnant parcels and to lessen impacts on occupied parcels. A refined drawing of the preferred option is attached. Please note there are differences in the refined drawing of Option 4 over the original concept drawing. In the northeast quadrant, access from Republic Avenue to Walker Street is eliminated in the refined concept. In the southwest quadrant, access to the South Oak Neighborhood is more direct and the south Hwy 7 frontage road access has also changed. Next Steps Staff has scheduled a Study Session discussion with Council on June 28, 2010 to review the preferred concept. Public meetings will be conducted in July to solicit feed back on the recommended layouts for the northeast and southwest quadrants of Option 4. The meetings will focus on engaging area property owners, business owners and residents in the northeast quadrant of the proposed interchange and the South Oak Hill Neighborhood located adjacent to the southwest quadrant. The reason for focusing on these stake holders is to listen to questions or concerns about the preferred concept with regards to the refinements of the ramp and roundabout locations and access changes in these two areas. Once input has been obtained form the northeast and southwest area stakeholders, a public meeting will be held to update all stakeholders and interested persons about the refined preferred concept – Option 4. This meeting could be held in August or September. Special Study Session Meeting of June 21, 2010 (Item No. 2) Page 3 Subject: Project Update – Hwy 7 Louisiana Ave Interchange Project – 2012-0100 FINANCIAL OR BUDGET CONSIDERATION: The estimated total project costs for Option 4 at this time are as follows: Total Project Cost (construction, ROW, agreements, design, etc.) Construction $16,500,000 Engineering $ 3,300,000 Right of Way $ 3,000,000 TOTAL PROJECT COSTS $21,800,000 Funding Sources and Opportunities $7,630,000 in federal funds have been secured through the Met Council’s State Transportation Program Urban Grant solicitation. Staff is continuing efforts to pursue funding through other grants, solicitations and agreements. Staff is preparing an application for TIGER II grant monies in the amount of $14,000,000. The 2010 Federal appropriations bill has authorized $600 million for National Infrastructure Investments grants called TIGER II. Staff is also preparing an application for Mn/DOT Municipal Agreement funds in the amount of $594,000. Current funding for Phase 1, 2 and 3 is coming from HRA levy proceeds which have been designated to pay for infrastructure improvements in redeveloping areas. VISION CONSIDERATION: The following Strategic Direction and focus area has been identified by Council. St. Louis Park is committed to being a connected and engaged community. Focus will be on: • Promoting regional transportation issues and related dedicated funding sources affecting St. Louis Park including but not limited to Hwy. 100 and SWLRT. Attachments: Concept drawings (Option 4 – Button Hook Ramp design, Option 6 – Tight Diamond design) Preferred Concept drawing (Option 4 – refined Button Hook Ramp design) Prepared by: Jim Olson, Engineering Project Manager Reviewed by: Scott Brink, City Engineer Mike Rardin, Public Works Director Approved by: Tom Harmening, City Manager Special Study Session Meeting of June 21, 2010 (Item No. 2) Subject: Project Update - Highway 7 Louisiana Ave Interchange Project Page 4 Special Study Session Meeting of June 21, 2010 (Item No. 2) Subject: Project Update - Highway 7 Louisiana Ave Interchange Project Page 5 WB TH 7 EB TH 7 LOUI SI ANA AVE. WALKER ST. W. LAKE ST. MN-7 REPUBLIC A VE.LAKE ST. W MONITOR ST. WALKER ST. INTERCHANGE T.H. 7 / LOUISIANA AVE. 0 feetscale 200 200 400 100 Alt 3 Option 4 - Button Hook Ramps with Roundabouts 2.5 acres 1.1 acres Special Study Session Meeting of June 21, 2010 (Item No. 2) Subject: Project Update - Highway 7 Louisiana Ave Interchange Project Page 6 Meeting Date: June 21, 2010 Agenda Item #: 3 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Project Report - W. 36th Street Streetscape Bridge Enhancement - Project 2010-2600. RECOMMENDED ACTION: None at this time. This report is intended to update the Council on a proposed bridge enhancement project on W 36th St. Staff intends to request Council approval and establishment of this project on July 6, 2010. Please inform staff of any questions or concerns you might have with this proposed project or schedule. POLICY CONSIDERATION: Does the City Council wish to use grant dollars as the primary source of funding to undertake improvements to the West 36th St Bridge? If not, please inform staff to discontinue work on this effort and bring the matter to a study session for further discussion BACKGROUND: History: On August 17, 2009, the City Council awarded a contract to Thomas and Sons to provide for construction of the 36th Streetscape Improvements, located between Wooddale Avenue and Highway 100. The improvements have subsequently been completed. The streetscape improvements were planned, programmed, and constructed in close coordination with the Hoigaard Village Development Project, along with anticipated future redevelopment along the corridor. As part of the Hoigaard Village Project, the City of St. Louis Park was awarded a Livable Communities Development Account Grant by the Metropolitan Council. The grant of $1,500,000 was awarded to assist in paying for several aspects related to the redevelopment of W. 36th Street (Highway 100 to Wooddale Avenue), including a large storm water pond, sidewalk improvements, and lighting. Analysis: The recently completed 36th Street enhancement project terminates at the bridge over Highway 100. To the east and other side of the bridge, a separate Special Service District and streetscape begins and extends further east to Belt Line Boulevard. As a result, in its current condition the 36th Street Bridge itself can be viewed as an unfinished link in the entire 36th Street streetscape corridor between Wooddale and Belt Line. More specifically, the existing infrastructure on the surface of the bridge (older railings, concrete barriers, chain link fence and lighting, etc.) are in contrast to adjacent improvements, both from an aesthetic standpoint, and in promoting a safer and friendlier environment to pedestrian and bicycle use in the corridor. Special Study Session Meeting of June 21, 2010 (Item 3) Page 2 Subject: Project Report - W. 36th Street Bridge Enhancements - Project 2010-2600 Upon completion of the 36th Street Streetscape improvements, it was determined that remaining Livable Community Grant Monies are eligible to fund further enhancement work. As a result, proposed enhancements for the bridge have been developed further. As proposed, the older and aging bridge railings and chain link fence would be replaced with new railings similar to the railings recently installed on the Excelsior Avenue Bridge. In addition, the existing protective concrete parapet barrier would be resurfaced and improved. The existing concrete sidewalks are essentially in good condition and would receive relatively minor work. The proposed enhancements have also been reviewed with the Minnesota Department of Transportation (the bridge owner). Mn/DOT is accepting of the proposed enhancements, pending completion of final plans for their review and approval. Staff is therefore proposing to contract with SRF Consulting Services to complete final plans and specifications for final approval and subsequent bidding. SRF also provided the design and construction services for the recently completed 36th Street Improvements. Proposed Schedule: Following is an anticipated schedule for completing the bridge enhancements: June 21, 2010 City Council receives Project Report. July 6, 2010 City Council Establishes Project, Approves Plans and Specifications and Authorizes Advertisement for Bids August 4, 2010 Open Bids August 16, 2010 Award Contract September 1, 2010 Commence Construction October 15, 2010 Complete Construction FINANCIAL OR BUDGET CONSIDERATION: With completion of the 36th Streetscape enhancements to date, there are still Livable Communities Grant monies remaining. All grant funds must be expended by the end of this year in accordance with the terms of the agreement. As a result, staff has reviewed the proposed enhancements with Met Council and received approval. Estimated Costs Construction Cost $177,000 Contingencies (10%) 17,700 Engineering & Administrative 26,250 Total $220,950 Funding Sources Livable Communities Grant $ 194,700 Development Fund 26,250 Total $220,950 Special Study Session Meeting of June 21, 2010 (Item 3) Page 3 Subject: Project Report - W. 36th Street Bridge Enhancements - Project 2010-2600 VISION CONSIDERATION: The proposed project will help address the Strategic Direction of being a connected and engaged community. Attachments: Proposed Enhancement Drawing (Railing) Prepared By: Scott Brink, City Engineer Reviewed By: Michael P. Rardin, Director of Public Works Kevin Locke, Director of Community Development Meg McMonigal, Planning/Zoning Supervisor Brian Swanson, Controller Approved By: Tom Harmening, City Manager Special Study Session Meeting of June 21, 2010 (Item 3) Page 4 Subject: Project Report - W. 36th Street Bridge Enhancements - Project 2010-2600 Meeting Date: June 21, 2010 Agenda Item #: 2a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: Proclamation EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Recognition of Catherine Tarsney. RECOMMENDED ACTION: The Mayor is asked to read the attached Proclamation honoring exemplary St. Louis Park High School graduate Catherine Tarsney, winner of the national Tournament of Champions’ 2010 Lincoln-Douglas Debate. POLICY CONSIDERATION: Not Applicable. BACKGROUND: St. Louis Park resident and recent St. Louis Park High School graduate Catherine Tarsney competed in thirteen debate tournaments throughout the United States over the past year. Her accomplishments at those qualifying tournaments met the requirements to allow her to compete May 1 - 3 at the 2010 Tournament of Champions, a national high school debate event sponsored by the University of Kentucky. The competition is considered to be America’s premier debate event for high school students. After 11 rounds at the Tournament of Champions, Catherine was declared winner by a rare, unanimous decision of the nine judges. Catherine was recognized for her accomplishment at the May 24 School Board meeting as the United States of American debate champion. She graduated from St. Louis Park High School June 3rd, and will attend the University of Chicago in the fall to study linguistics and political science. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: Recognizing national student accomplishments is consistent with the Strategic Direction of being a Connected and Engaged Community. Attachments: Proclamation Prepared by: Nancy Stroth, City Clerk Approved by: Tom Harmening, City Manager City Council Meeting of June 21, 2010 (Item No. 2a) Page 2 Subject: Recognition of Board and Commission Members PROCLAMATION Honoring Catherine Tarsney WHEREAS, Catherine Tarsney is a 2010 graduate of St. Louis Park High School and has established herself as one of the top debaters in the nation, both as a speaker and in presenting and defending her arguments; and WHEREAS, Catherine competed in thirteen debate tournaments throughout the United States to qualify for the 2010 Tournament of Champions at the University of Kentucky; and WHEREAS, Catherine competed among eighty debaters in eleven rounds and won the highest award of the Lincoln-Douglas debate division of the National Tournament of Champions by unanimous decision of the judges, a feat that has rarely occurred in the 32-year history of the tournament; and WHEREAS, on May 24, 2010 Catherine was honored by the School Board of Independent School District 283 for her achievements; and WHEREAS, Catherine was named a semifinalist in the 2010 National Merit Scholarship program, being among the top half of one percent of high school seniors in the country. NOW THEREFORE, let it be known that the Mayor and City Council of the City of St. Louis Park do hereby congratulate Catherine Tarsney on her achievement, and wish her every success as she begins her college career. WHEREFORE, I set my hand and cause the Great Seal of the City of St. Louis Park to be affixed this 21st day of June, 2010. ______________________________________ Jeff Jacobs, Mayor Meeting Date: June 21, 2010 Agenda Item #: 2b 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: Tom Gasman Retirement Recognition RECOMMENDED ACTION: Read Resolution and present plaque to Public Service Worker Tom Gasman to recognize his 27 years of service to the City of St. Louis Park. POLICY CONSIDERATION: None. BACKGROUND: City policy states that employees who retire or resign in good standing with over 20 years of service will be presented with a resolution from the Mayor, City Manager and City Council. Tom will be in attendance for the presentation at the beginning of the meeting. The Mayor is asked to read the resolution and present Tom with a plaque in recognition of his years of service to the City. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: None. Attachments: Resolution Prepared by: Ali Fosse, HR Coordinator Reviewed by: Nancy Deno Gohman, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of June 21, 2010 (Item No. 2b) Page 2 Subject: Tom Gasman Retirement Recognition Resolution RESOLUTION NO. 10-___ RESOLUTION OF THE CITY COUNCIL OF ST. LOUIS PARK, MINNESOTA, RECOGNIZING THE CONTRIBUTIONS OF AND EXPRESSING APPRECIATION TO TOM GASMAN WHEREAS, Tom Gasman began his employment with the City of St. Louis Park over 27 years ago on September 20, 1982; and WHEREAS, Tom was born and raised in St. Louis Park and took pride in serving the residents of his hometown; and WHEREAS, Tom’s great sense of humor has provided much enjoyment to his fellow employees, he had the ability to make a very difficult job fun for those working with him; and WHEREAS, Tom took pride in his military service as a Jarhead/Marine, and says that “once a Marine always a Marine”; and WHEREAS, Tom took great satisfaction in training new staff on meter installation; and WHEREAS, Tom will always be remembered as the guy who walked into a serious utility business meeting on his hands; and WHEREAS, Tom worked on repairing over 800 watermain breaks during his time with the Utilities Division, many required working long days, weekends and holidays; and WHEREAS, Tom’s efforts in maintaining the water, sewer and storm sewer utilities provided great service to the people of St. Louis Park; NOW THEREFORE BE IT RESOLVED that the City Council of the City of St. Louis Park, Minnesota, by this Resolution and public record, would like to thank Public Service Worker Tom Gasman for his great contributions and over 27 years of dedicated service to the City of St. Louis Park and wish him the best in his retirement. Reviewed for Administration: Adopted by the City Council June 21, 2010 City Manager Mayor Attest: City Clerk Meeting Date: June 21, 2010 Agenda Item #: 2c 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: Friends of the Arts Presentation of Our Town: Verses and Voices Program. RECOMMENDED ACTION: No action required. A presentation will be made on the Verses and Voices initative and Diane Pecoraro, Community Poet, will read one of her poems and Ryan McCanna, a 14 year old that is very involved in the program, will read one of her original works. POLICY CONSIDERATION: None at this time. BACKGROUND: St. Louis Park Friends of the Arts (FotA) is a nonprofit community organization dedicated to supporting, promoting, and enhancing the arts in St. Louis Park. FotA connects people and organizations around the arts, shares arts-related information and resources, and coordinates community arts programs. FotA was established in 1994 when parents concerned about cuts in funding for music education in St. Louis Park public schools joined together to make their voices heard. Soon other parents and community members interested in developing all the arts in St. Louis Park—music, visual and performing arts—joined their efforts, and Friends of the Arts was born. Since 1995, FotA has sponsored arts festivals, community theater productions, school music events, community art shows, family art activities, and teen workshops. Many of these programs and activities are funded by private donations, membership fees and grant dollars. This past year, Friends of the Arts (FotA) has been running a community arts program called Our Town: Voices & Verses. This program grew out of the first Our Town: Faces & Places which featured photography. Verses & Voices focused on poetry and had the following three goals: 1. To celebrate the power of poetry in all its forms (written and spoken); 2. To provide local poets with a place to showcase their work; and 3. To highlight the essential nature of poetry to bind us together as a community. Our Town Verses & Voices consists of the following components: St. Louis Park Community Poet: City Council Meeting of June 21, 2010 (Item 2c) Page 2 Subject: Friends of the Arts Diane Pecoraro was chosen to serve as the town’s first Community Poet. In this role, she helped to choose the Favorite Poems for the city/school calendar, assembled the Renga and hosted the Poetry Jam. Favorite Poem Project: This spring, community members were asked to submit a favorite poem and a written description of why it was so meaningful. Twelve of the 49 submissions received will be included in the calendar. Poems selected needed to reflect the interests of the entire community. The poems not selected will be showcased on the St. Louis Park FotA website later this fall. Poetry workshops: Ten free one-hour poetry workshops were offered to residents to generate lines for the Renga (a collaborative poem based on a Japanese form). They were taught by poets and took place in the following community partner locations: Cedar Manor, Sabes JCC, St. Louis Park Library, Westwood Hills Nature Center, West End, Central Community Center, Sholom, Bean Good Coffee Shop, and the Meadowbrook Collaborative. Community Jam held in April at Bean Good Coffee shop (formerly Harvest Moon) featured 17 community members and/or poets who came together to share their poems with others in a public forum celebrating National Poetry Month. Renga & youth performance: Approximately 100 lines of poetry that were generated in the poetry workshop were then assembled by Diane Pecoraro into a community poem (Renga). Finally, this poem was transformed from the page to the stage and performed as a spoken word piece at the Children First Ice Cream Social in May. Our Town Verses & Voices was funded by the support of the Minnesota Regional Arts Council through an appropriation from the Minnesota State Legislature, and the St. Louis Park Community Foundation and the Park Nicollet Foundation. FINANCIAL OR BUDGET CONSIDERATION: The City of St. Louis Park does provide funding on an annual basis to Friends of the Arts. VISION CONSIDERATION: This initiative is consistent with the Strategic Direction - St. Louis Park is committed to promoting and integrating arts, culture, and community aesthetics in all city initiatives, including implementation where appropriate. Attachments: None. Prepared by: Cindy Walsh, Director of Parks and Recreation Approved by: Tom Harmening, City Manager Meeting Date: June 21, 2010 Agenda Item #: 2d 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: Presentation of 2009 Financial Statements – Auditors Presentation. RECOMMENDED ACTION: No action required. City Council is asked to provide any comments or questions it might have regarding the Management Letter and Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2009. POLICY CONSIDERATION: Is the City Council comfortable with the information contained in both the Management Letter and the CAFR to allow for effective decision making? Would the Council desire to have a follow-up discussion on the Audit? BACKGROUND: For the presentation, Brad Falteysek – Audit Partner from Abdo Eick & Meyers, LLP, will discuss the Management Letter 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. By state statute, the auditors are required to present their results within thirty days after completion of the audit. The City received a clean audit opinion, or “unqualified opinion”, with no audit findings, which means that Abdo Eick & Meyers, LLP believe the financial statements, as presented by city staff, fairly represents the City’s financial condition as of December 31, 2009. Staff will then submit the CAFR to the Office of the State Auditor as required and also submit 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 26 consecutive years. FINANCIAL OR BUDGET CONSIDERATION: This report shows the City of St. Louis Park remains in strong financial condition. VISION CONSIDERATION: There is no direct relationship to Vision. However, by the City being in a sound financial condition it does allow the City to better address Vision SLP and the Strategic Directions. Meeting of June 21, 2010 (Item No. 2d) Page 2 Subject: 2009 Financial Statements – Auditors Presentation Attachments: Management Letter – For the Year Ended December 31, 2009 Federal Awards Programs – For the Year Ended December 31, 2009 Comprehensive Annual Financial Report–For the Year Ended December 31, 2009 Prepared by: Brian A. Swanson, Controller Approved by: Tom Harmening, City Manager CITY OF ST. LOUIS PARK ST. LOUIS PARK, MINNESOTA MANAGEMENT LETTER YEAR ENDED DECEMBER 31, 2009 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 3 June 10, 2010 Management, Honorable Mayor, and Council City of St. Louis Park, Minnesota We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of St. Louis Park, Minnesota (the City) for the year ended December 31, 2009 and have issued our report thereon dated June 10, 2010. Professional standards require that we provide you with the following information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and OMB Circular A-133, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated January 1, 2010. Professional standards also require that we communicate to you the following information related to our audit. Our Responsibility under Auditing Standards Generally Accepted in the United States of America and Government Auditing Standards and OMB Circular A-133. As stated in our engagement letter, our responsibility, as described by professional standards, is to express opinions about whether the financial statements, prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings In planning and performing our audit, we considered the City’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over financial reporting. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 4 Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Summary of Prior Year Findings 2008-1 Reconciliation of Deposits Condition: During our audit, we reviewed procedures over the billing and collection of receipts at the Recreation Center. We noted no clear reconciliation of the receipts posted to the point of sale system to the actual deposit prior to taking to the bank. Criteria: Procedures should include formal reconciliation prior to making the bank deposit to ensure all amounts are posted correctly. Current Year Status: The City has taken the proper actions to correct this finding. Compliance As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit. Also, in accordance with OMB Circular A-133, we examined, on a test basis, evidence about the City’s compliance with the types of compliance requirements described in the “U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement” applicable to each of its major federal programs for the purpose of expressing an opinion on the City’s compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City’s compliance with those requirements. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported in accordance with OMB Circular A-133, Government Auditing Standards, or Minnesota statutes. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. We noted no transaction entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumption about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. Management’s estimate of capital asset basis is based on estimated useful lives of the assets. The estimate of historical cost is based on engineers’ estimates and deflated current value. Additional sensitive estimates include other postemployment benefits and allocation of expenses. We evaluated key factors and assumptions used to develop these accounting estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 5 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. We proposed one entry that we consider an audit entry or correction of management decisions. The entry was made to correct bond payments recorded to incorrect funds. We also assisted in preparing a number of year end accounting entries. These were necessary to adjust the City’s records at year end to correct ending balances. The City should establish more detailed processes and procedures to reduce the total number of entries made during the audit. The City will receive better and timelier information if the preparation of year end entries is completed internally. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 10, 2010. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the governmental unit’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 6 Other Matters The following are areas that came to our attention during the audit that we feel should be reviewed: Financial Position and Results of Operations Our principal observations and recommendations are summarized on the following pages. These recommendations resulted from our observations made in connection with our audit of the City’s financial statements for the year ended December 31, 2009. General Fund The General fund is used to account for resources traditionally associated with government, which are not required legally or by sound financial management to be accounted for in another fund. The General fund balance increased $118,382 from 2008. The unreserved fund balance is $11,272,776, which is 49.1 percent of the 2010 budgeted expenditures. We recommend the fund balance be maintained at a level sufficient to fund operations until the major revenue sources are received in June. We feel a reserve of approximately 40 to 50 percent of planned expenditures and transfers out is adequate to meet working capital and small emergency needs. The Office of the State Auditor (the OSA) has issued a Statement of Position relating to fund balance stating “a local government should identify fund balance separately between reserved and unreserved fund balance. The local government may assign and report some or all of the fund balance as designated and undesignated.” We recommend local governments adopt a formal policy on the level of unreserved fund balance that should be maintained in the general and special revenue funds. This helps address citizen concerns as to the use of fund balance and tax levels. Purposes and Benefits of an Adequate Fund Balance • Expenditures are incurred somewhat evenly throughout the year. However, currently, property tax and state aid revenues are not received until the second half of the year. An adequate fund balance will provide the cash flow required to finance the General fund expenditures until these revenue sources are received. • The City is vulnerable to legislative actions at the State and Federal level. The State imposed reductions of market value credit aid and local government aid for some cities for 2009 and 2010. The Governor has recently presented increased reductions of 2010 funding as well as reductions of 2011 funding. Levy limits have also been implemented for municipalities in past legislative sessions. An adequate fund balance will provide a temporary buffer against those aid adjustments and levy limits. • Expenditures not anticipated at the time the annual budget was adopted may need immediate Council action. These would include capital outlay replacement, lawsuits and other items. An adequate fund balance will provide the financing needed for such expenditures. • A strong fund balance will assist the City in obtaining, maintaining or improving its bond rating. The result will be better interest rates in future bond sales. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 7 A table summarizing the General fund balance in relation to budget follows: Unreserved Reserved Fund Fund General Balance Balance Budget Fund Year December 31 December 31 Year Budget 2005 8,622,091$ 118,002$ 2006 21,697,931$ 39.7 % 2006 9,847,341 104,774 2007 21,866,416 45.0 2007 10,100,187 13,719 2008 22,907,928 44.1 2008 11,232,307 494,293 2009 23,693,279 47.4 2009 11,272,776 572,206 2010 22,969,172 49.1 To Budget Fund Balance Unreserved Percent of General Fund Unreserved Fund Balance as Compared to Budget 47.4% 49.1% 39.7%45.0%44.1% $21,697,931 $21,866,416 $22,907,928 $23,693,279 $22,969,172 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2004 2005 2006 2007 2008 2009 Unreserved Fund Balance Budget We have compiled peer group average fund balance information from the Minnesota Office of the State Auditor for 2nd class cities. In 2008, the average General fund balance as a percentage of expenditures for the peer group was 43.5 percent. Based on comparison to the peer group, the City’s percentage is higher than the peer group. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 8 A summary of General fund revenue and expenditures compared to budget and the prior year follows: Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues 21,098,389$ 20,781,389$ 21,310,955$ 529,566$ Expenditures 23,893,279 23,693,279 22,477,873 1,215,406 Excess (deficiency) of revenues over (under) expenditures (2,794,890) (2,911,890) (1,166,918) 1,744,972 Other financing sources (uses) Transfers in 2,628,910 2,678,910 2,685,300 6,390 Transfers out - - (1,400,000) (1,400,000) Total other financing sources (uses)2,628,910 2,678,910 1,285,300 (1,393,610) Net change in fund balances (165,980) (232,980) 118,382 351,362 Fund balances, January 1 11,726,600 11,726,600 11,726,600 - Fund balances, December 31 11,560,620$ 11,493,620$ 11,844,982$ 351,362$ Budgeted Amounts • In total, revenue sources provided a favorable variance when compared to budget. The sources of revenue that were greater than budgeted expectations were property taxes, licenses and permits, and miscellaneous revenue, which had positive variances of $509,517, $264,167, and $68,876, respectively. • All functions of expenditures had favorable actual results when compared with budget. Public Safety was $521,484 under budget. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 9 A comp arison of revenues and transfers in for the last three years follows: 2007 2008 2009 Per Capita Taxes 12,332,531$ 13,235,208$ 15,162,792$ 63.2 %321$ Licenses and permits 2,940,449 4,066,478 2,779,167 11.6 59 Intergovernmental 2,283,250 1,903,238 1,570,309 6.5 33 Charges of services 1,044,320 1,131,625 1,034,854 4.3 22 Fines and forfeits 276,693 324,512 332,694 1.4 7 Special assessments 2,468 - - - - Interest on investments 526,336 358,753 260,263 1.1 6 Miscellaneous 142,814 144,223 170,876 0.7 4 Transfers in 2,659,532 2,558,321 2,685,300 11.2 57 Total revenues and and transfers 22,208,393$ 23,722,358$ 23,996,255$ 100.0 %509$ Source Total Percent of Revenues and Transfers $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 2007 2008 2009 Taxes Licenses and permits Intergovernmental Other Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 10 A comparison of expenditures and transfers out for the last three years follows: Peer Group 2007 2008 2009 Per Capita Per Capita General government 6,630,661$ 6,535,398$ 6,472,022$ 27.1 %137$ 90$ Public safety 10,797,256 11,643,136 11,904,138 49.9 252 223 Public works 3,826,855 3,928,477 4,094,051 17.1 87 89 General services 6,830 2,653 7,662 - - 2 Transfers out 785,000 - 1,400,000 5.9 30 n/a Total expenditures and transfers 22,046,602$ 22,109,664$ 23,877,873$ 100.0 %506$ 404$ Program Total Percent of The above chart compares the amount the City spends per capita, in comparison to a peer group. The peer group averages are compiled from information from the Minnesota Office of the State Auditor for 2nd Class cities. Expenditures and Transfers $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 2007 2008 2009 General government Public safety Public works General services Transfers out Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 11 Special Revenue Funds Special revenue funds are used to account for revenue derived from specific taxes or other earmarked revenue sources. They are usually required by Minnesota statute or local ordinance to finance particular functions or activities of government. A summary of fund balances follows: Increase 2009 2008 (Decrease) Major Parks and Recreation 870,549$ 497,263$ 373,286$ Housing Rehabilitation 820,005 1,729,807 (909,802) Nonmajor Cable Television 1,353,006 1,632,217 (279,211) Community Development (5,698) (6,568) 870 Special Service District #1 179,722 138,852 40,870 Special Service District #2 20,261 7,851 12,410 Special Service District #3 47,535 52,780 (5,245) Special Service District #4 67,429 48,239 19,190 Special Service District #5 12,030 - 12,030 Special Service District #6 11,147 - 11,147 Police and Fire Pensions 5,240,732 5,446,950 (206,218) Total 8,616,718$ 9,547,391$ (930,673)$ Fund December 31, Fund Balances (deficits) The reduction in the Cable Television fund was a result of capital outlay that was not budgeted. The reduction in the Police and Fire Pensions fund was a result of transferring $307,572 to the Fire Station Project fund and the General fund. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 12 Capital Projects Funds The capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by enterprise funds. Included in this group of funds and the fund balance of each at December 31 for 2009 and 2008 is as follows: Increase 2009 2008 (Decrease) Major Permanent Improvement Revolving 8,768,647$ 8,620,404$ 148,243$ Street Capital Projects (4,970,481) (3,343,441) (1,627,040) Development EDA 24,579,348 26,248,575 (1,669,227) Redevelopment District 6,398,168 9,992,626 (3,594,458) Nonmajor Municipal Building - 472,810 (472,810) Fire Station Bonds (250) (627) 377 Park Improvement 1,987,774 2,246,952 (259,178) Pavement Management 1,542,128 1,657,652 (115,524) Total 38,305,334$ 45,894,951$ (7,589,617)$ December 31, Fund Balances (deficits) Fund It appears that most of the capital project funds have sufficient fund balances for working capital except for the Street Capital Projects fund. Management should determine future funding sources for this fund to decrease the deficit balance. The City annually reviews capital projects and closes funds when associated projects have been completed. This is a good monitoring process that ensures status is evaluated and should be continued. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 13 Debt Service Funds Debt service funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt (other than enterprise fund debt). Debt service funds may have one or a combination of the following revenue sources pledged to retire debt as follows: • Property taxes - Primarily for general City benefit projects such as parks and municipal buildings. Property taxes may also be used to fund special assessment bonds which are not fully assessed. • Tax increments - Pledged exclusively for tax increment/economic development districts. • Capitalized interest portion of bond proceeds - After the sale of bonds, the project may not produce revenue (tax increments or special assessments) for a period of one to two years. Bonds are issued with this timing difference considered in the form of capitalized interest. • Special assessments - Charges to benefited properties for various improvements. In addition to the above pledged assets, other funding sources may be received by Debt Service funds as follows: • Residual project proceeds from the related capital projects fund • Investment earnings • State or federal grants • Transfers from other funds A comparison of the assets of each fund and the remaining bonds outstanding at year end are as follows: Final Total Total Remaining Maturity Fund Cash Assets Bonds Date 3890 G.O. Tax Increment Bond, 2008B 346,781$ 348,592$ 5,490,000$ 02/01/24 3870 G.O. Improvements Bond, 2005A 521,638 523,534 2,880,000 02/01/16 3850 G.O. Tax Increment Refunding Bond, 2004 7,706 7,706 1,415,000 02/01/18 3450 G.O. Improvements Bond, 2003 506,693 508,476 2,240,000 02/01/14 3835 G.O. Tax Increment Refunding Bond, 2009A 5,147 5,147 1,500,000 02/01/11 3600 G.O. Improvement Bond, 2000 - Reserve 325,000 325,000 - Matured 3610 G.O. Improvement Bond, 2000 185,726 4,055,726 3,870,000 02/01/30 3400 G.O. Improvement Bond, 1999 348,461 349,727 600,000 02/01/11 Total 2,247,152$ 6,123,908$ 17,995,000$ December 31, 2009 Debt Description The City should review potential uses of remaining net assets in funds that have completed their purpose. TIF funds need to be used for a purpose consistent with the TIF plan and remaining resources in G.O. Improvement bonds can be used for whatever the council deems appropriate. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 14 Enterprise Funds The activities of the Enterprise funds include the municipal water utility, sewer utility, refuse, storm water utility and wireless operations. Water Utility Fund A comparison of the past three year’s Water Utility fund operations is as follows: Total Total Total Operating revenues 3,460,541$ 100.0 %3,584,384$ 100.0 %4,218,313$ 100.0 % Operating expenses 3,228,875 93.3 3,283,197 91.6 3,847,236 91.2 Operating income 231,666 6.7 301,187 8.4 371,077 8.8 Nonoperating revenues (expenses)46,841 1.4 (26,546) (0.7)(90,784) (2.2) Transfers (538,882) (16.7) (533,656) (16.3) (4,568,147) (118.7) Change in net assets (260,375)$ (8.6)%(259,015)$ (8.6)%(4,287,854)$ (112.1)% Cash and temporary investments 2,109,647$ 4,640,355$ 350$ Bonds payable 2,440,000$ 6,446,401$ 6,329,719$ 2007 2008 2009 Percent PercentPercent $(6,000,000) $(4,000,000) $(2,000,000) $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 2007 2008 2009 Operating revenues Operating expenses Nonoperating revenues (expenses) Change in net assets Cash and temporary investments Bonds payable The cash balance significantly decreased over the prior year due to construction costs. The City plans to bond in 2010 to replenish the balance. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 15 Sewer Utility Fund A comparison of the past three year’s Sewer Utility fund operations is as follows: Total Total Total Operating revenues 4,764,952$ 100.0 %4,482,087$ 100.0 %5,152,609$ 100.0 % Operating expenses 4,199,659 88.1 4,485,386 100.1 4,228,680 82.1 Operating income (loss)565,293 11.9 (3,299) (0.1)923,929 17.9 Nonoperating revenues 221,981 4.7 101,604 2.3 47,327 0.9 Transfers (790,849) (18.8) (741,334) (16.5) (764,244) (18.1) Change in net assets (3,575)$ (2.2)%(643,029)$ (14.3)%207,012$ 0.7 % Cash and temporary investments 2,581,105$ 2,083,067$ 1,851,591$ 2007 2008 2009 Percent Percent Percent $(1,000,000) $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2007 2008 2009 Operating revenues Operating expenses Nonoperating revenues Change in net assets Cash and temporary investments The current cash balance decreased when compared with the prior year due to loans to other funds. It is important to keep an updated cash flow projection to ensure rates are sufficient to cover increasing costs. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 16 Solid Waste Fund A comparison of the past three year’s Solid Waste fund operations is as follows: Total Total Total Operating revenues 2,395,469$ 100.0 %2,347,995$ 100.0 %2,458,383$ 100.0 % Operating expenses 2,019,595 84.3 2,135,677 91.0 2,125,540 86.5 Operating income 375,874 15.7 212,318 9.0 332,843 13.5 Nonoperating revenues 215,984 9.0 181,046 7.7 152,299 6.2 Transfers (348,866) (17.3) (353,299) (16.5) (288,100) (13.6) Change in net assets 242,992$ 7.4 %40,065$ 0.2 %197,042$ 6.1 % Cash and temporary investments 2,191,412$ 2,244,381$ 1,999,051$ 2007 2008 2009 Percent Percent Percent $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2007 2008 2009 Operating revenues Operating expenses Nonoperating revenues Change in net assets Cash and temporary investments The current cash balance decreased slightly when compared with the prior year due to an interfund loan to the water fund. It is important to keep an updated cash flow projection to ensure rates are sufficient to cover increasing costs. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 17 Storm Water Utility Fund A comparison of the past three year’s Storm Water Utility fund operations is as follows: Total Total Total Operating revenues 1,470,529$ 100.0 %1,529,180$ 100.0 %1,699,557$ 100.0 % Operating expenses 942,746 64.1 1,017,093 66.5 1,143,767 67.3 Operating income 527,783 35.9 512,087 33.5 555,790 32.7 Nonoperating revenues (expenses)49,032 3.3 732,635 47.9 (65,340) (3.8) Transfers (317,694) (33.7) (328,438) (32.3) (368,491) (32.2) Change in net assets 259,121$ 5.5 %916,284$ 49.1 %121,959$ (3.3)% Cash and temporary investments 924,907$ 529,059$ 758,716$ Bonds payable 3,395,000$ 3,149,389$ 2,879,091$ 2007 2008 2009 Percent Percent Percent $(500,000) $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2007 2008 2009 Operating revenues Operating expenses Nonoperating revenues (expenses) Change in net assets Cash and temporary investments Bonds payable The current cash balance increased when compared with the prior year. It is important to keep an updated cash flow projection to ensure rates are sufficient to cover increasing costs. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 18 Wireless Fund A summary of the past three year’s Wireless fund operations are as follows: Total Total Total Operating revenues 68,606$ 100.0 %32,592$ 100.0 %140$ 100.0 % Operating expenses 1,151,751 1678.8 315,664 968.5 151,708 108362.9 Operating loss (1,083,145) (1578.8) (283,072) (868.5) (151,568) (108262.9) Nonoperating revenues (expenses)353 0.5 1,059,114 3249.6 33,274 23767.1 Change in net assets (1,082,792)$ (1578.3)%776,042$ 2381.1 %668,376$ (83977.3)% Cash and temporary investments -$ 781,437$ -$ 2007 Percent Percent Percent 2008 2009 $(1,500,000) $(1,000,000) $(500,000) $- $500,000 $1,000,000 $1,500,000 2006 2008 2009 Operating revenues Operating expenses Nonoperating revenues (expenses) Change in net assets Cash and temporary investments The Wireless fund was closed as of December 31, 2009. All remaining assets and liabilities were transferred to the Development EDA fund. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 19 Ratio Analysis The following captures a few ratios from the City’s financial statements that give some additional information for trend and peer group analysis. The peer group average is derived from information available on the website of the Office of the State Auditor. The peer group average represented below consists of Minnesota cities of the 2nd class (population 20,000 to 100,000). The majority of these ratios facilitate the use of economic resources focus and accrual basis of accounting at the government-wide level. A combination of liquidity (ability to pay its most immediate obligations), solvency (ability to pay its long-term obligations), funding (comparison of financial amounts and economic indicators to measure changes in financial capacity over time) and common-size (comparison of financial data with other cities regardless of size) ratios are shown below. Calculation Source 2006 2007 2008 2009 Debt to assets Total liabilities/total assets Government-wide 20% 19% 21% 17% 24% 23% 23%N/A Debt service coverage Net cash provided by operations/Enterprise funds 192% 339% 199% 203% enterprise fund debt payments 241% 247% 247%N/A Debt per capita Bonded debt/population Government-wide 723$ 708$ 769$ 577$ 1,389$ 1,485$ 1,485$ N/A Taxes per capita Tax revenues/population Government-wide 560$ 613$ 604$ 625$ 381$ 408$ 408$ N/A Current expenditures per capita Current expenditures / population Governmental funds 876$ 805$ 811$ 793$ N/A 620$ 593$ N/A Capital expenditures per capita Capital expenditures / population Governmental funds 103$ 130$ 221$ 218$ N/A 435$ 304$ N/A Capital assets % left to Net capital assets/Government-wide 74% 66% 66% 66% depreciate - Governmental gross capital assets 70% 69% 69%N/A Capital assets % left to Net capital assets/Government-wide 51% 53% 53% 53% depreciate - Business-type gross capital assets 65% 64% 64%N/A Represents the City of St. Louis Park Peer Group ratio Ratio Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 20 Debt-to-Assets Leverage Ratio (Solvency Ratio) The debt-to-assets leverage ratio is a comparison of a city’s total liabilities to its total assets or the percentage of total assets that are provided by creditors. It indicates the degree to which the City’s assets are financed through borrowings and other long-term obligations (i.e. a ratio of 50 percent would indicate half of the assets are financing with outstanding debt). Debt Service Coverage Ratio (Solvency Ratio) The debt coverage ratio is a comparison of cash generated by operations to total debt service payments (principal and interest) of enterprise funds. This ratio indicates if there are sufficient cash flows from operations to meet debt service obligations. Except in cases where other nonoperating revenues (i.e. taxes, assessments, transfers from other funds, etc.) are used to fund debt service payments, an acceptable ratio would be above 100 percent. Bonded Debt per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total bonded debt by the population of the city and represents the amount of bonded debt obligation for each citizen of the City at the end of the year. The higher the amount, the more resources are needed in the future to retire these obligations through taxes, assessments or user fees. Taxes per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total tax revenues by the population of the city and represents the amount of taxes for each citizen of the city for the year. The higher this amount is, the more reliant the City is on taxes to fund its operations. Of the total taxes, 21 percent is related to tax increments or approximately $120 per capita. Current Expenditures per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total current governmental expenditures by the population of the City and represents the amount of governmental expenditure for each citizen of the City during the year. Since this is generally based on ongoing expenditures, we would expect consistent annual per capita results. Capital Expenditures per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total governmental capital outlay expenditures by the population of the City and represents the amount of capital expenditure for each citizen of the City during the year. Since projects are not always recurring, the per capita amount will fluctuate from year to year. Capital Assets Percentage (Common-size Ratio) This percentage represents the percent of governmental or business-type capital assets that are left to be depreciated. The lower this percentage, the older the city’s capital assets are and may need major repairs or replacements in the near future. A higher percentage may indicate newer assets being constructed or purchased and may coincide with higher debt ratios or bonded debt per capita. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 21 Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements: GASB Statement No. 51 - Accounting and Financial Reporting for Intangible Assets This statement was issued in June 2007 and is effective for periods beginning after June 15, 2009. The new standard characterizes an intangible asset as an asset that lacks physical substance, is nonfinancial in nature, and has an initial useful life extending beyond a single reporting period. Examples of intangible assets include easements, computer software, water rights, timber rights, patents, and trademarks. This statement requires that intangible assets be classified as capital assets (except for those explicitly excluded from the scope of the new standard, such as capital leases). Relevant authoritative guidance for capital assets should be applied to these intangible assets. The statement provides additional guidance that specifically addresses the unique nature of intangible assets, including: • Requiring that an intangible asset be recognized in the statement of net assets only if it is considered identifiable • Establishing a specified-conditions approach to recognizing intangible assets that are internally generated (for example, patents and copyrights) • Providing guidance on recognizing internally generated computer software • Establishing specific guidance for the amortization of intangible assets. GASB Statement No. 54 - Fund Balance This statement was issued in March of 2009 and is effective for periods beginning after June 15, 2010. This new standard is intended to improve the usefulness of information provided to financial report users about fund balance by providing clearer, more structured fund balance classifications, and clarifying the definitions of existing governmental fund types. GASB No. 54 distinguishes fund balance between amounts that are considered non-spendable, such as fund balance associated with inventories, and other amounts that are classified based on the relative strength of the constraints that control the purposes for which specific amounts can be spent. The following classifications and definitions will be used: • Restricted - amounts constrained by external parties, constitutional provision, or enabling legislation • Committed - amounts constrained by a government using its highest level of decision-making authority • Assigned - amounts a government intends to use for a particular purpose • Unassigned - amounts that are not constrained at all will be reported in the general fund. In addition to the classifications of fund balance, the standard clarified the definitions of individual governmental fund types, for example, special revenue funds, debt service funds, and capital project funds. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 22 * * * * * This report is intended solely for the information and use of Council, management and the Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. June 10, 2010 ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota Certified Public Accountants Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 23 CITY OF ST. LOUIS PARK ST. LOUIS PARK, MINNESOTA FEDERAL AWARDS PROGRAMS YEAR ENDED DECEMBER 31, 2009 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 24 CITY OF ST. LOUIS PARK, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 2009 Page No. I. SINGLE AUDIT AND OTHER REQUIRED REPORTS Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 3 - 4 Schedule of Expenditures of Federal Awards 5 Notes to Schedule of Expenditures of Federal Awards 6 Schedule of Findings and Questioned Costs 7 II. OTHER REPORTS Report on Minnesota Legal Compliance 9 Report and on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 10 - 11 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 25 SINGLE AUDIT AND OTHER REQUIRED REPORTS CITY OF ST. LOUIS PARK ST. LOUIS PARK, MINNESOTA YEAR ENDED DECEMBER 31, 2009 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 26 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Honorable Mayor and City Council City of St. Louis Park St. Louis Park, Minnesota Compliance We have audited the compliance of the City of St. Louis Park, Minnesota (the City) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2009. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the City's management. Our responsibility is to express an opinion on the City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City’s compliance with those requirements. In our opinion, the City complied, in all material respects, with the requirements referred to above that are applicable to each of its of its major federal programs for the year ended December 31, 2009. Internal Control Over Compliance The management of the City is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City’s internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 27 A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City as of and for the year ended December 31, 2009, and have issued our report thereon dated June 10, 2010, which contained unqualified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements as a whole. The Schedule of Expenditure of Federal Awards is presented for the purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. This report is intended solely for the information and use of the Council, management, others within the City, the Minnesota office of the State Auditor, and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. June 10, 2010 ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota Certified Public Accountants Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 28 CITY OF ST. LOUIS PARK ST. LOUIS PARK, MINNESOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED DECEMBER 31, 2009 Federal Domestic Assistance Program Number Program Name Expenditures U.S. Department of Transportation 20.205 ARRA Highway Planning and Construction 782,790$ U.S. Department of Transportation 20.205 Highway Planning and Construction 35,000 U.S. Department of Housing and Urban Development 14.218 Community Development Block Grant 235,661 U.S. Department of Justice 16.804 Edward Byrne Memorial Justice Assistance Grant 56,023 U.S. Department of Justice 16.607 Bulletproof Vest Partnership Program 1,202 Total Federal expenditures 1,110,676$ Funding Source Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 29 CITY OF ST. LOUIS PARK ST. LOUIS PARK, MINNESOTA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED DECEMBER 31, 2009 1. General The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of the City of St. Louis Park, Minnesota. The City's reporting entity is defined in Note I.A to the City's financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the schedule. 2. Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described below. Under 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 revenue to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 30 CITY OF ST. LOUIS PARK ST. LOUIS PARK, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED DECEMBER 31, 2009 A. Summary of Auditor’s Results Financial Statements 1. The auditor's report expresses an unqualified opinion on the financial statements of the City of St. Louis Park, Minnesota (the City). 2. No significant deficiencies or material weaknesses relating to the audit of the financial statements are reported in the Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 3. No instances of noncompliance material to the financial statements of the City were disclosed during the audit. Federal Awards 1. The auditor's report on compliance for the major federal award programs for the City expresses an unqualified opinion on all major federal programs. 2. No significant deficiencies or material weaknesses relating to the audit of the major federal award programs are reported in the Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133. 3. There are no audit findings required to be reported under Section 510(a) of OMB Circular A-133. 4. The programs tested as major programs included: CFDA U.S. Department of Transportation - ARRA Highway Planning and Construction 20.205 5. The threshold for distinguishing between Types A and B programs was $300,000. 6. The City does not qualify as a low-risk auditee. B. Findings - Financial Statement Audit None. C. Findings and Questioned Costs - Major Federal Award Programs Audit None. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 31 OTHER REPORTS CITY OF ST. LOUIS PARK ST. LOUIS PARK, MINNESOTA YEAR ENDED DECEMBER 31, 2009 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 32 REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of St. Louis Park St. Louis Park, Minnesota We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of St. Louis Park, Minnesota (the City) as of and for the year ended December 31, 2009, which collectively comprise the City’s basic financial statements and have issued our report thereon dated June 10, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Minnesota Office of the State Auditor pursuant to Minnesota statute 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers seven main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, tax increment financing, and miscellaneous provisions. Our study included all of the listed categories. The results of our tests indicate that for the items tested, the City complied with the material terms and conditions of applicable legal provisions. This report is intended solely for the information and use of the Council, management and the Minnesota Office of the State Auditor, and is not intended to be and should not be used by anyone other than these specified parties. June 10, 2010 ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota Certified Public Accountants Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 33 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Council City of St. Louis Park St. Louis Park, Minnesota We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of St. Louis Park, Minnesota (the City), as of and for the year ended December 31, 2009, which collectively comprise the City’s basic financial statements as listed in the table of contents and have issued our report thereon dated June 10, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 34 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the City in a separate letter dated June 10, 2010. This report is intended solely for the information and use of management, City Council, other within the City, the Minnesota Office of the State Auditor, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. June 10, 2010 ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota Certified Public Accountants Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 35 Comprehensive Annual Financial Report For the Year Ended December 31, 2009 City of St. Louis Park, Minnesota Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 36 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 37 City of St. Louis Park, Minnesota Comprehensive Annual Financial Report For the fiscal year ended December 31, 2009 Thomas Harmening - City Manager Prepared by: Department of Finance Member of the Government Finance Officers’ Association Of the United States and Canada Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 38 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 39 CITY OF ST. LOUIS PARK, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2009 TABLE OF CONTENTS – CONTINUED ON THE FOLLOWING PAGES Page No. I. INTRODUCTORY SECTION Letter of Transmittal from City Manager and Finance Director 9 Certificate of Achievement for Excellence in Financial Reporting 13 Organizational Chart 14 Elected Officials and Staff 15 II. FINANCIAL SECTION Independent Auditor’s Report 19 Management’s Discussion and Analysis 23 Basic Financial Statements Government-wide Financial Statements Statement of Net Assets 37 Statement of Activities 38 Fund Financial Statements Governmental Funds Balance Sheet 42 Reconciliation of the Balance Sheet to the Statement of Net Assets 45 Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) 46 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) to the Statement of Activities 48 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 49 Park and Recreation Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 50 Proprietary Funds Statements of Net Assets (Liabilities) 52 Statements of Revenues, Expenses and Changes in Fund Net Assets (Liabilities) 60 Statements of Cash Flows 64 Notes to the Financial Statements 75 Required Supplementary Information Schedule of Funding Progress for the Postemployment Benefit Plan 115 Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 118 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 119 Nonmajor Special Revenue Governmental Funds Combining Balance Sheet 122 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) 124 Cable Television Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 126 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 40 CITY OF ST. LOUIS PARK, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2009 TABLE OF CONTENTS - CONTINUED Page No. II. FINANCIAL SECTION - CONTINUED Combining and Individual Fund Financial Statements and Schedules - Continued Nonmajor Capital Projects Governmental Funds Combining Balance Sheet 128 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) 130 Debt Service Funds Combining Balance Sheet 135 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 139 Redevelopment District Governmental Funds Combining Balance Sheet 142 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) 146 Internal Service Funds Combining Statement of Net Assets (Liabilities) 150 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets (Liabilities) 152 Combining Statement of Cash Flows 154 General Fund Balance Sheet 158 Schedule of Revenues, Expenditures and Changes in Fund Balances Compared to Budget 159 Supplementary Information Summary Financial Report Revenues and Expenditures for General Operations - Governmental Funds 165 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 41 CITY OF ST. LOUIS PARK, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2009 TABLE OF CONTENTS - CONTINUED Table Page No. III. STATISTICAL SECTION (UNAUDITED) Financial Trends Net Assets by Component 1 168 Changes in Net Assets 2 170 Governmental Activities Tax Revenues by Source 3 175 Fund Balances of Governmental Funds 4 176 Changes in Fund Balances of Governmental Funds 5 178 Revenue Capacity Assessed Value/Tax Capacity Value and Estimated Actual Values of Taxable Property 6 180 Property Tax Capacity Rates - Direct and Overlapping Governments 7 182 Principal Property Taxpayers 8 185 Property Tax Levies and Collections 9 186 Debt Capacity Ratios of Outstanding Debt by Type 10 188 Ratios of General Bonded Debt Outstanding 11 189 Direct and Overlapping Governmental Activities Debt 12 190 Legal Debt Margin Information 13 191 Pledged Revenue Bond Coverage 14 192 Demographic and Economic Information Demographic Statistics 15 193 Principal Employers 16 194 Operating Information Full-Time Equivalent City Government Employees by Function 17 195 Operating Indicators by Function 18 196 Capital Asset Statistics by Function 19 197 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 42 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 43 INTRODUCTORY SECTION Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 44 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 45 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 46 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 47 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 48 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 49 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 50 2009 CITY OF ST. LOUIS PARK ORGANIZATIONAL CHART City Council City Manager ADMINISTRATIVE SERVICES Records General Admin Human Resources Payroll Organization Develop Elections City Clerk FINANCE Financial Reporting Budget Financial Mgmt Debt Mgmt Investments Utility Billing Assessing COMMUNITY DEVELOPMENT Planning/Zoning Economic Dev Housing INSPECTIONS Code Enforcement Building Inspections Housing Inspections Environmental Health Licensing Facility Maint. Service Districts PUBLIC WORKS Engineering Utility Operations Streets/Traffic Refuse/Recycling PARKS & RECREATION Rec Programming Park Maintenance Environmental Nature Center Recreation Center Park Improvements Vehicle Maint. POLICE Police Services Investigation Crime Prevention 911 Dispatch Animal Control Community Outreach FIRE Fire Prevention Fire Suppression EMS/Rescue Emergency Preparedness INFORMATION RESOURCES Cable Television Technology Services Support Services WEB Communications & Marketing Citizens Economic Development Authority Housing Authority Boards & Commissions City Council City Manager ADMINISTRATIVE SERVICES Records General Admin Human Resources Payroll Organization Develop Elections City Clerk FINANCE Financial Reporting Budget Financial Mgmt Debt Mgmt Investments Utility Billing Assessing COMMUNITY DEVELOPMENT Planning/Zoning Economic Dev Housing INSPECTIONS Code Enforcement Building Inspections Housing Inspections Environmental Health Licensing Facility Maint. Service Districts PUBLIC WORKS Engineering Utility Operations Streets/Traffic Refuse/Recycling PARKS & RECREATION Rec Programming Park Maintenance Environmental Nature Center Recreation Center Park Improvements Vehicle Maint. POLICE Police Services Investigation Crime Prevention 911 Dispatch Animal Control Community Outreach FIRE Fire Prevention Fire Suppression EMS/Rescue Emergency Preparedness INFORMATION RESOURCES Cable Television Technology Services Support Services WEB Communications & Marketing Citizens Economic Development Authority Housing Authority Boards & Commissions Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 51 City Officials as of December 31, 2009 Jeff Jacobs Mayor EDA Commissioner Term Expires 1/2/12 Susan Sanger Ward 1 Councilmember EDA Commissioner Term Expires 1/4/10 Mayor Pro-tem John Basill Ward 2 Councilmember EDA Commissioner Term Expires 1/4/10 Loran Paprocki Ward 3 Councilmember EDA President Term Expires 1/4/10 C. Paul Carver Ward 4 Councilmember EDA Vice-President Term Expires 1/4/10 Paul Omodt At-Large A Councilmember EDA Treasurer Term Expires 1/2/12 Phil Finkelstein At-Large B Councilmember EDA Commissioner Term Expires 1/2/12 _________________________________________________________________ Staff: City Manager: Thomas Harmening Director of Community Development: Kevin Locke Controller: Brian Swanson Deputy City Manager/Director of Human Resources: Nancy Gohman Director of Inspections: Brian Hoffman Director of Public Works: Michael Rardin Chief Information Officer: Clint Pires Fire Chief: Luke Stemmer Parks and Recreation Director: Cindy Walsh Police Chief: John Luse Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 52 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 53 FINANCIAL SECTION Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 54 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 55 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and Council City of St. Louis Park, Minnesota We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota (the City), as of and for the year ended December 31, 2009, which collectively comprise the City’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City’s management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year comparative information has been derived from the City’s 2008 financial statements and, in our report dated June 24, 2009, we expressed unqualified opinions on the respective proprietary fund financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and that standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2009, and the respective changes in financial position and where applicable, cash flows and the respective budgetary comparison schedule for the General fund and the Parks and Recreation Special Revenue fund, thereof and for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated June 10, 2010, on our consideration of the City’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 56 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 57 Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 23 through 34 and the Schedule of Funding Progress on page 115 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Government Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements as a whole. The introductory section, combining and individual fund financial statements, schedules and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. June 10, 2010 ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota Certified Public Accountants Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 58 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 59 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, 2009. 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 9 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 $180,719,970 (net assets). Of this amount, $67,488,507 (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 $4,235,158. • As of the close of the current fiscal year, the City of St. Louis Park’s governmental funds reported combined ending fund balances of $60,965,104. Approximately 87 percent of this amount, $52,852,202, is available for use within the City’s designations and policies. • At the end of the current fiscal year, unreserved fund balance for the General fund was $11,272,776 (47 percent) of total General fund expenditures and transfers out. • The City of St. Louis Park’s total bonded debt decreased by $9,100,000 (25 percent) during the current fiscal year. The City retired the series 2001, 2002 and 2005B G.O. Tax Increment Refunding Bonds during the year and also partially retired the 2004 G.O. Tax Increment Refunding Bonds. The City issued G.O. Tax Increment Refunding bond, series 2009A for $2,000,000. Principal paid during the year was $11,100,000. 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. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 60 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, solid waste, and wireless operations. The Wireless fund was closed at the end of 2009. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 61 City of St. Louis Park Management’s Discussion and Analysis The government-wide financial statements start on page 37 of this report. Fund financial statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of St. Louis Park, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of St. Louis Park can be divided into two categories: governmental funds and proprietary funds. Governmental funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of St. Louis Park maintains eight individual major governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the General fund, two special revenue funds, debt service, and four capital project funds, all of which are considered to be major funds. Data from the other eight 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 42 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, solid waste, and wireless 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, solid waste, and wireless operations, all of which are considered to be major funds of the City of St. Louis Park. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 62 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 start on page 52 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 75 of this report. Other information – The combining statements referred to earlier, in connection with nonmajor governmental funds and internal service funds, are presented immediately following the required supplementary information. Combining and individual fund statements and schedules start on page 118 of this report. Other reports – Additional information related to the General fund start on page 135 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 $180,718,970 at the close of the most recent fiscal year. A portion of the City of St. Louis Park’s net assets (63 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. The City of St. Louis Park uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of St. Louis Park’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 63 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Net Assets Increase Increase 2009 2008 (Decrease)2009 2008 (Decrease) Assets Current and other assets 77,241,117$ 89,149,732$ (11,908,615)$ 7,702,056$ 11,402,424$ (3,700,368)$ Capital assets 100,528,759 88,817,772 11,710,987 33,186,279 33,041,335 144,944 Total assets 177,769,876 177,967,504 (197,628) 40,888,335 44,443,759 (3,555,424) Liabilities Other liabilities 6,016,976 5,239,519 777,457 599,759 718,033 (118,274) Noncurrent liabilities 21,915,175 30,218,883 (8,303,708) 9,407,331 9,751,016 (343,685) Total liabilities 27,932,151 35,458,402 (7,526,251) 10,007,090 10,469,049 (461,959) Net assets Invested in capital assets, net of related debt 89,252,994 76,600,774 12,652,220 23,977,469 27,559,942 (3,582,473) Unrestricted 60,584,731 65,908,328 (5,323,597) 6,903,776 6,414,768 489,008 Total net assets 149,837,725$ 142,509,102$ 7,328,623$ 30,881,245$ 33,974,710$ (3,093,465)$ Governmental Activities Business-type Activities The balance of unrestricted net assets ($67,488,507) 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 $7,328,623. This increase relates primarily to transfers from the enterprise funds. Business-Type activities – The net assets of business-type activities decreased by $3,093,465. This decrease is primarily due to transfers to the governmental funds. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 64 City of St. Louis Park Management’s Discussion and Analysis The following table indicates the changes in net assets for the City’s governmental and business-type activities: City of St. Louis Park’s Changes in Net Assets Increase Increase 2009 2008 (Decrease)2009 2008 (Decrease) Revenues Program revenues Charges for services 9,287,231$ 8,421,590$ 865,641$ 13,622,385$ 12,019,358$ 1,603,027$ Operating grants and contributions 2,664,563 3,581,092 (916,529) 167,604 966,053 (798,449) Capital grants and contributions 2,131,755 2,822,683 (690,928) - 1,040,384 (1,040,384) General revenues Property taxes 29,512,631 28,523,119 989,512 - - - Franchise fees 1,503,075 1,507,994 (4,919) - - - State grants and contributions not restricted to specific programs 153,108 519,850 (366,742) - - - Unrestricted investment earnings 1,452,176 2,133,858 (681,682) 201,825 243,724 (41,899) Gain on disposal of capital assets 91,149 1,842,601 (1,751,452) - - - Miscellaneous 11,229 470,230 (459,001) - 18,473 (18,473) Total revenues 46,806,917 49,823,017 (3,016,100) 13,991,814 14,287,992 (296,178) Expenses General government 8,167,355 8,216,816 (49,461) - - - Public safety 12,138,185 11,867,403 270,782 - - - Public works 6,915,541 6,904,217 11,324 - - - Public information 457,872 425,829 32,043 - - - Culture and recreation 7,456,215 7,352,406 103,809 - - - Housing and rehabilitation 1,544,175 1,615,010 (70,835) - - - Housing maintenance 128,099 199,757 (71,658) - - - Social and economic development 6,321,623 5,494,634 826,989 - - - General services 7,662 2,653 5,009 - - - Interest on long-term debt 1,543,879 1,329,767 214,112 - - - Water utility - - - 4,089,837 3,391,992 697,845 Sewer utility - - - 4,228,680 4,485,386 (256,706) Solid waste utility - - - 2,125,540 2,135,677 (10,137) Storm water utility - - - 1,287,202 1,172,199 115,003 Wireless - - - 151,708 315,664 (163,956) Total expenses 44,680,606 43,408,492 1,272,114 11,882,967 11,500,918 382,049 Increase (decrease) in net assets before transfers 2,126,311 6,414,525 (4,288,214) 2,108,847 2,787,074 (678,227) Transfers 5,202,312 1,956,727 3,245,585 (5,202,312) (1,956,727) (3,245,585) Change in net assets 7,328,623 8,371,252 (1,042,629) (3,093,465) 830,347 (3,923,812) Net assets, January 1 142,509,102 134,137,850 8,371,252 33,974,710 33,144,363 830,347 Net assets, December 31 149,837,725$ 142,509,102$ 7,328,623$ 30,881,245$ 33,974,710$ (3,093,465)$ Governmental Activities Business-type Activities Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 65 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 19.8% Operating grants and contributions 5.7% Capital grants and contributions 4.6% Property taxes 63.1% Franchise taxes 3.2% Grants and contributions unrestricted 0.3% Unrestricted investment earnings 3.1% Gain on sale of capital assets 0.2% Expenses - The following chart illustrates the City’s expenses and program revenues for its governmental activities: Expenses and Program Revenues - Governmental Activities $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 General governmentPublic safetyPublic worksPublic informationCulture and recreationHousing and rehabilitationHousing maintenanceSocial and economic developmentGeneral servicesInterest on long-term debtExpenses Program revenues Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 66 City of St. Louis Park Management’s Discussion and Analysis Business-type activities - Business-type activities net assets decreased in 2009. Below are the graphs showing the business-type activities revenue and expense comparisons. Revenue Sources - Business-type Activities Charges for services 97.4% Operating grants and contributions 1.2% Unrestricted investment earnings 1.4% Expense and Program Revenues - Business-type Activities $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Water Sewer Solid waste Storm water Wireless Expenses Program revenues Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 67 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, unreserved 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 $60,965,104, a decrease of $11,640,166 in comparison with prior year. Unreserved, undesignated fund balance, which is available for spending at the government’s discretion, has a deficit balance of $2,723,711 at year end. The remainder of fund balance is reserved or designated to indicate that it is not available for new spending because it has already been committed 1) to pay debt service ($2,198,070), 2) to pay for capital improvements and future expenditures ($55,575,913), 3) to reserve for loans outstanding ($5,109,159), 4) for inventory ($247,186) 5) for E-911 funds ($558,487). 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, unreserved fund balance of the General fund was $11,272,776, while total fund balance reached $11,844,982. As a measure of the General fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 47 percent of total General fund expenditures and transfers out, while total fund balance represents 49 percent of that same amount. The City’s General fund balance increased $118,382 during the current fiscal year. This increase is primarily due to transfers in from other funds of $2,685,300. Expenditures were under budget by $1,215,406. The total property tax revenue collected exceeded budget by $509,517 due to decertification of the Excelsior Boulevard Tax Increment District and the subsequent tax receipts. Licenses and permits revenue exceeded budget by $264,167, primarily due to a conservative budget. Parks and Recreation – the increase of $373,286 in fund balance is due to expenditures being under budget by $262,894 and transfers in from other funds. Housing Rehabilitation – the decrease of $909,802 in fund balance is due to strong demand for housing improvement programs since homeowners are having difficulty finding conventional financing for improvement projects. Debt Service Fund - Fund balance in the debt service funds decreased $3,238,258 primarily due to debt service retirement. Permanent Improvement Revolving Fund - The increase in fund balance of $148,243 is due to interest earned on investments. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 68 City of St. Louis Park Management’s Discussion and Analysis Street Capital Projects Fund – Fund balance decreased by $1,627,040 for an ending fund deficit of $4,970,481. The decrease is primarily due to capital expenditures greater than revenue and transfers in. Transfers to offset expenditures will be made as individual street projects are closed out. Development Fund - In 2009, the Development fund balance decreased by $1,669,227. This decrease is attributable primarily to expenditures and transfers out exceeding revenue. Redevelopment District Fund – The Redevelopment District fund is comprised of all tax increment districts in the City. The decrease in fund balance of $3,594,458 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 $6,903,776. Total net assets decreased by $3,093,465. 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, 2009, was $133,715,038 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City of St. Louis Park’s investment in capital assets for the current fiscal year was 9.7 percent. Major capital asset events during the current fiscal year included the following: • Purchase of land for Wooddale Avenue and Highway 7 interchange. • Expansion of Municipal Service Center. • Improvements to roadways and street lighting. • Improvements to water treatment plants and water tower. • Improvements to sewer system. • Improvements to park infrastructure and shelters. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 69 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Capital Assets (net of accumulated depreciation) Increase Increase 2009 2008 (Decrease)2009 2008 (Decrease) Land 14,479,128$ 12,370,123$ 2,109,005$ 174,844$ 174,844$ -$ Buildings 19,671,187 19,943,655 (272,468) 1,700,768 1,828,547 (127,779) Improvements other than buildings 9,938,199 8,663,860 1,274,339 5,690,979 4,468,622 1,222,357 Machinery and equipment 6,893,707 6,684,304 209,403 2,626,810 1,869,113 757,697 Infrastructure 39,904,808 35,025,660 4,879,148 22,926,521 20,653,024 2,273,497 Construction in progress 9,641,730 6,130,170 3,511,560 66,357 4,047,185 (3,980,828) Total 100,528,759$ 88,817,772$ 11,710,987$ 33,186,279$ 33,041,335$ 144,944$ Governmental Activities Business-type Activities Additional information on the City of St. Louis Park’s capital assets can be found in Note III.D starting on page 94 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 $27,180,000. Of this amount, $9,590,000 comprises debt issued for improvement projects and will be repaid by ad valorem tax levies. In addition, $8,405,000 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 remainder 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 $3,390,908 for compensated absences and $707,906 for other post employment benefits payable. City of St. Louis Park’s Outstanding Debt General Obligation Bonds, Revenue Bonds, and other Debt Increase Increase 2009 2008 (Decrease)2009 2008 (Decrease) G.O. Revenue Bonds -$ -$ -$ 9,185,000$ 9,570,000$ (385,000)$ G.O. Tax Increment 8,405,000 15,995,000 (7,590,000) - - - G.O. Improvement 9,590,000 10,715,000 (1,125,000) - - - Compensated absences 3,226,673 3,157,197 69,476 164,235 162,874 1,361 Other postemployment benefits 673,620 351,686 321,934 34,286 18,142 16,144 Total 21,895,293$ 30,218,883$ (8,323,590)$ 9,383,521$ 9,751,016$ (367,495)$ Governmental Activities Business-type Activities Principal payments during 2009 totaled $11,100,000. The City also issued $2,000,000 worth of tax increment bonds. The City of St. Louis Park maintains an “AAA” rating from Standard & Poor’s for general obligation debt. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 70 City of St. Louis Park Management’s Discussion and Analysis 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 $167,199,699 which is significantly more than the City of St. Louis Park’s outstanding general obligation debt. Additional information on the City of St. Louis Park’s long-term debt can be found in Note III.F starting on page 100 of this report. Economic Factors and Next Year’s Budgets and Rates • User charges have been increased to account for various utility improvements scheduled for 2010 and beyond. • The overall tax levy for 2010 was increased 2.98 percent. All of these factors were considered in preparing the City of St. Louis Park’s budget for the 2010 fiscal year. Requests for Information This financial report is designed to provide our citizens, customers, and creditors with a general overview of the City of St. Louis Park’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in the report, or requests for additional financial information, contact the City of St. Louis Park Finance Department at 5005 Minnetonka Boulevard, St. Louis Park, Minnesota, 55416, 952-924-2683, or Brian Swanson – Controller at bswanson@stlouispark.org. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 71 BASIC FINANCIAL STATEMENTS Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 72 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 73 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET ASSETS DECEMBER 31, 2009 Governmental Business-type Activities Activities Total ASSETS Cash and temporary investments 59,633,149$ 4,609,708$ 64,242,857$ Receivables Accrued interest 327,627 37,868 365,495 Delinquent taxes 502,933 - 502,933 Unremitted tax collections 341,855 - 341,855 Accounts 1,048,317 2,545,228 3,593,545 Special assessments 3,375,079 696,595 4,071,674 Deposits 131,000 700 131,700 Loans - current 106,447 - 106,447 Internal balances 308,226 (308,226) - Due from other governments 1,866,964 67,144 1,934,108 Inventory 247,186 - 247,186 Prepaid items 326,472 - 326,472 Loans - noncurrent 8,879,159 - 8,879,159 Deferred charges 146,703 53,039 199,742 Capital assets Land and construction in progress 24,120,858 241,201 24,362,059 Depreciable assets (net of accumulated deprecation)76,407,901 32,945,078 109,352,979 TOTAL ASSETS 177,769,876 40,888,335 218,658,211 LIABILITIES Accounts payable 1,131,243 255,987 1,387,230 Contracts payable 1,580,118 56,355 1,636,473 Accrued salaries payable 831,195 52,407 883,602 Accrued interest payable 286,530 153,589 440,119 Deposits payable 1,617,387 - 1,617,387 Due to other governments 227,188 81,421 308,609 Unearned revenue 343,315 - 343,315 Noncurrent liabilities: Due within one year Compensated absences payable 2,258,671 114,965 2,373,636 Bonds payable 1,670,000 400,000 2,070,000 Due in more than one year Compensated absences payable 968,002 49,270 1,017,272 Other postemployment benefits payable 673,620 34,286 707,906 Bonds payable 16,344,882 8,808,810 25,153,692 TOTAL LIABILITIES 27,932,151 10,007,090 37,939,241 NET ASSETS Invested in capital assets, net of related debt 89,252,994 23,977,469 113,230,463 Unrestricted 60,584,731 6,903,776 67,488,507 TOTAL NET ASSETS 149,837,725$ 30,881,245$ 180,718,970$ The notes to the financial statements are an integral part of this statement. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 74 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2009 Operating Capital Grants Charges for Grants and and Expenses Services Contributions Contributions Governmental activities General government 8,167,355$ 888,246$ 25,764$ -$ Public safety 12,138,185 2,958,383 1,135,070 - Public works 6,915,541 2,292,287 975,931 1,194,448 Public information 457,872 - 1,759 - Culture and recreation 7,456,215 2,083,015 98,605 256,830 Housing and rehabilitation 1,544,175 562,930 45,124 206,321 Housing maintenance 128,099 - 235,662 - Social and economic development 6,321,623 184,236 146,648 474,156 General services 7,662 - - - Interest on long-term debt 1,543,879 318,134 - - Total governmental activities 44,680,606 9,287,231 2,664,563 2,131,755 Business-type activities Water 4,089,837 4,294,962 - - Sewer 4,228,680 5,153,171 - - Solid waste 2,125,540 2,458,555 100,460 - Storm water 1,287,202 1,699,557 67,144 - Wireless 151,708 16,140 - - Total business-type activities 11,882,967 13,622,385 167,604 - Total 56,563,573$ 22,909,616$ 2,832,167$ 2,131,755$ General revenues Taxes Property taxes Levied for general purposes Levied for debt service Levied for parks and recreation Levied for capital projects Levied for development Franchise taxes State grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on disposal of capital assets Miscellaneous Transfers Total general revenues Change in net assets Net Assets, January 1 Net Assets, December 31 The notes to the financial statements are an integral part of this statement. Functions/Programs Program Revenues Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 75 Governmental Business-type Activities Activities Total (7,253,345)$ -$ (7,253,345)$ (8,044,732) - (8,044,732) (2,452,875) - (2,452,875) (456,113) - (456,113) (5,017,765) - (5,017,765) (729,800) - (729,800) 107,563 - 107,563 (5,516,583) - (5,516,583) (7,662) - (7,662) (1,225,745) - (1,225,745) (30,597,057) - (30,597,057) - 205,125 205,125 - 924,491 924,491 - 433,475 433,475 - 479,499 479,499 - (135,568) (135,568) - 1,907,022 1,907,022 (30,597,057) 1,907,022 (28,690,035) 15,128,890 - 15,128,890 1,347,000 - 1,347,000 4,073,118 - 4,073,118 1,110,003 - 1,110,003 7,853,620 - 7,853,620 1,503,075 - 1,503,075 153,108 - 153,108 1,452,176 201,825 1,654,001 91,149 - 91,149 11,229 - 11,229 5,202,312 (5,202,312) - 37,925,680 (5,000,487) 32,925,193 7,328,623 (3,093,465) 4,235,158 142,509,102 33,974,710 176,483,812 149,837,725$ 30,881,245$ 180,718,970$ Net Revenues (Expenses) and Changes in Net Assets Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 76 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 77 CITY OF ST. LOUIS PARK, MINNESOTA MAJOR GOVERNMENTAL FUNDS General Fund - The City of St. Louis Park Home Rule Charter provides in Section 6.12(a) that there shall be “A General fund for the payment of such expenses of the City as the Council may deem proper. Into this fund shall be paid all money not provided herein or by statute to be paid into any other fund.” The General fund is established to account for all revenues and expenditures which are not required to be accounted for in other funds. It has more diverse revenue sources than other funds, including property taxes, licenses, permits, fines and forfeits, intergovernmental, service charges, rents, and investment interest earnings. The fund’s resources finance a wide range of functions including current operations of general government, public safety, public works, and general service expenditures. SPECIAL REVENUE FUNDS 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. Housing Rehabilitation Fund - to account for revenues from revenue bond fees and expenditures related to preventing deterioration of multi-unit housing. DEBT SERVICE FUNDS Debt Service Fund - To accumulate monies for payment of principal and interest on bond issues. CAPITAL PROJECTS FUNDS Permanent Improvement Revolving Fund - To account for the resources and expenditures required for the acquisition and construction of capital improvements which will provide a direct and 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. Streets Capital Projects Fund - To account for street construction projects. Revenues are provided by the General Fund or by the issuance of General Obligation bonds. Development EDA Fund - To account for transactions related to redevelopment efforts in the City; financing is provided by investment earnings, grants, and developer reimbursements. Redevelopment District - To account for transactions relative to acquisition and development in the City’s tax increment redevelopment district; financing is provided by the sale of general obligation tax increment and tax increment revenue bonds along with tax increment property tax payments. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 78 CITY OF ST. LOUIS PARK, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2009 Parks and Housing Debt General Recreation Rehabilitation Service ASSETS Cash and temporary investments 13,651,250$ 640,988$ -$ 2,247,152$ Receivables Unremitted tax collections 252,009 - - - Delinquent taxes 483,131 - - - Accounts 16,084 250,796 4,947 - Accrued interest 61,747 - - 6,756 Special assessments Delinquent - - - - Deferred - - 1,910,045 - Deposits - - - - Loans - current - - - 100,000 Due from other funds - - - - Due from other governments 137,711 1,058 2,188 - Inventory 13,719 233,467 - - Loans - noncurrent - - 2,513,425 3,770,000 TOTAL ASSETS 14,615,651$ 1,126,309$ 4,430,605$ 6,123,908$ LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable 436,021$ 101,251$ 85,775$ 3,000$ Contracts payable 14,429 - 18,303 - Accrued salaries payable 662,837 115,319 3,658 - Due to other funds - - 1,597,491 52,838 Due to other governments 61,624 14,063 - - Deposits payable 795,039 - - - Deferred revenue 800,719 25,127 1,905,373 3,870,000 TOTAL LIABILITIES 2,770,669 255,760 3,610,600 3,925,838 FUND BALANCES (DEFICITS) Reserved for Inventory 13,719 233,467 - - E-911 funds 558,487 - - - Loan receivable - noncurrent - - 2,513,425 - Debt service - - - 2,198,070 Unreserved Designated reported in: General fund 7,326,638 - - - Special revenue funds - 637,082 - - Capital projects funds - - - - Undesignated reported in: General fund 3,946,138 - - - Special revenue funds - - (1,693,420) - Capital projects funds - - - - TOTAL FUND BALANCES (DEFICITS)11,844,982 870,549 820,005 2,198,070 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)14,615,651$ 1,126,309$ 4,430,605$ 6,123,908$ The notes to the financial statements are an integral part of this statement. Special Revenue Funds Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 79 Permanent Streets Other Total Improvement Capital Development Redevelopment Governmental Governmental Revolving Projects EDA District Funds Funds 1,848,816$ -$ 19,343,831$ 7,977,834$ 10,416,158$ 56,126,029$ - - - 89,846 - 341,855 - - - 19,802 - 502,933 - 392,150 4,200 3,568 376,572 1,048,317 38,552 - 107,548 37,541 53,639 305,783 7,325 - 4,721 - 9,087 21,133 1,092,880 - 183,658 - 167,363 3,353,946 - - 100,000 - - 100,000 - - 6,447 - - 106,447 6,886,139 - 2,458,055 52,838 - 9,397,032 12,500 1,449,463 3,500 - 166,636 1,773,056 - - - - - 247,186 - - 2,595,734 - - 8,879,159 9,886,212$ 1,841,613$ 24,807,694$ 8,181,429$ 11,189,455$ 82,202,876$ -$ 25,889$ 34,732$ 11,299$ 212,453$ 910,420$ 19,661 547,030 - - 151,065 750,488 - - - - 11,714 793,528 - 6,229,175 - 860,564 151,488 8,891,556 - - 5,236 79,248 39,556 199,727 - 10,000 - 812,348 - 1,617,387 1,097,904 - 188,378 19,802 167,363 8,074,666 1,117,565 6,812,094 228,346 1,783,261 733,639 21,237,772 - - - - - 247,186 - - - - - 558,487 - - 2,595,734 - - 5,109,159 - - - - - 2,198,070 - - - - - 7,326,638 - - - - 6,931,862 7,568,944 8,768,647 - 21,983,614 6,398,168 3,529,902 40,680,331 - - - - - 3,946,138 - - - - (5,698) (1,699,118) - (4,970,481) - - (250) (4,970,731) 8,768,647 (4,970,481) 24,579,348 6,398,168 10,455,816 60,965,104 9,886,212$ 1,841,613$ 24,807,694$ 8,181,429$ 11,189,455$ 82,202,876$ Capital Projects Funds Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 80 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 81 CITY OF ST LOUIS PARK, MINNESOTA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS GOVERNMENTAL FUNDS AS OF DECEMBER 31, 2009 Total fund balances - governmental 60,965,104$ Amounts reported for the 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 as assets in governmental funds. Cost of capital assets 134,292,494 Less: accumulated depreciation (45,327,531) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: Bond principal payable (17,995,000) Less deferred charges net of accumulated amortization 146,703 Unamortized premium on Bonds (19,882) 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 assets and liabilities of the internal service funds are included in the governmental activities in the statement of net assets 10,331,016 Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds Special assessments 3,358,418 Taxes 502,933 Loans 3,870,000 Governmental funds do not report a liability for accrued interest until due and payable (286,530) Total net assets - governmental activities 149,837,725$ The notes to the financial statements are an integral part of this statement. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 82 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2009 Parks and Housing Debt General Recreation Rehabilitation Service REVENUES Property taxes 15,162,792$ 4,073,118$ -$ 1,347,000$ Tax increments - - - - Franchise taxes - - - - License and permits 2,779,167 6,865 - - Intergovernmental 1,570,309 67,622 - - Charges for services 1,034,854 1,042,612 10,868 - Fines and forfeits 332,694 - - - Special assessments - - 255,975 - Interest on investments 260,263 760 6,312 24,069 Miscellaneous 170,876 984,559 552,362 318,134 TOTAL REVENUES 21,310,955 6,175,536 825,517 1,689,203 EXPENDITURES Current General government 6,472,022 - - - Public safety 11,904,138 - - - Public works 4,094,051 - - - Public information - - - - Culture and recreation - 5,835,524 - - Housing and rehabilitation - - 1,550,264 - Housing maintenance - - - - Social and economic development - - - - General services 7,662 - - - Capital outlay Public safety - - - - Public works - - - - Public information - - - - Culture and recreation - - - - Social and economic development - - - - Debt service Principal - - - 4,709,000 Interest - - - 1,322,477 TOTAL EXPENDITURES 22,477,873 5,835,524 1,550,264 6,031,477 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (1,166,918) 340,012 (724,747) (4,342,274) OTHER FINANCING SOURCES (USES) Transfers in 2,685,300 33,274 - 5,535,989 Issuance of debt - - 2,000,000 Premium on bonds - - - 10,202 Principal payments to refunded bond escrow agent - - - (6,045,000) Costs paid to refunded bond escrow agent - - - (199,425) Transfers out (1,400,000) - (185,055) (197,750) TOTAL OTHER FINANCING SOURCES (USES)1,285,300 33,274 (185,055) 1,104,016 NET CHANGE IN FUND BALANCES 118,382 373,286 (909,802) (3,238,258) FUND BALANCES (DEFICITS), JANUARY 1 11,726,600 497,263 1,729,807 5,436,328 FUND BALANCES (DEFICITS), DECEMBER 31 11,844,982$ 870,549$ 820,005$ 2,198,070$ The notes to the financial statements are an integral part of this statement. Special Revenue Funds Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 83 Permanent Streets Other Total Improvement Capital Development Redevelopment Governmental Governmental Revolving Projects EDA District Funds Funds -$ -$ 281$ 7,135$ 1,110,003$ 21,700,329$ - - - 7,846,204 - 7,846,204 - - - - 1,503,075 1,503,075 - - - - - 2,786,032 - 1,708,207 79,851 146,542 295,264 3,867,795 - 1,923,509 158,000 - 58,336 4,228,179 - - - - - 332,694 267,571 - 73,145 - 203,363 800,054 164,474 - 440,488 217,933 243,871 1,358,170 27,221 - 285,299 - 276,611 2,615,062 459,266 3,631,716 1,037,064 8,217,814 3,690,523 47,037,594 - - - - - 6,472,022 10,678 - - - 34,796 11,949,612 - 228,532 - - 314,706 4,637,289 - - - - 445,146 445,146 - - - - 191,535 6,027,059 - - - - - 1,550,264 - - - - 128,099 128,099 - - 972,095 5,092,877 176,151 6,241,123 - - - - - 7,662 - - - - 1,294 1,294 - 6,386,541 - - 1,182,428 7,568,969 - - - - 295,924 295,924 225,524 - - - 1,249,926 1,475,450 - - 947,526 24,839 - 972,365 - - - - - 4,709,000 - - - - - 1,322,477 236,202 6,615,073 1,919,621 5,117,716 4,020,005 53,803,755 223,064 (2,983,357) (882,557) 3,100,098 (329,482) (6,766,161) - 1,356,317 - 197,750 130,669 9,939,299 - - - - - 2,000,000 - - - - - 10,202 - - - - - (6,045,000) - - - - - (199,425) (74,821) - (786,670) (6,892,306) (1,042,479) (10,579,081) (74,821) 1,356,317 (786,670) (6,694,556) (911,810) (4,874,005) 148,243 (1,627,040) (1,669,227) (3,594,458) (1,241,292) (11,640,166) 8,620,404 (3,343,441) 26,248,575 9,992,626 11,697,108 72,605,270 8,768,647$ (4,970,481)$ 24,579,348$ 6,398,168$ 10,455,816$ 60,965,104$ Capital Projects Funds Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 84 CITY OF ST. LOUIS PARK, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2009 Total net change in fund balances (11,640,166)$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Depreciation expense (3,878,252) Capital outlays 10,213,903 Disposal of capital assets (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 (2,000,000) Premium on bonds issued (10,202) Principal repayments on bonds 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.101,340 Governmental fund 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.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 (33,902) Property taxes (381,929) Loans (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 4,480,210 Change in net assets - governmental activities 7,328,623$ The notes to the financial statements are an integral part of this statement. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 85 CITY OF ST. LOUIS PARK, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2009 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) REVENUES Property taxes 14,970,275$ 14,653,275$ 15,162,792$ 509,517$ Licenses and permits 2,515,000 2,515,000 2,779,167 264,167 Intergovernmental 1,647,214 1,647,214 1,570,309 (76,905) Charges for services 1,201,900 1,201,900 1,034,854 (167,046) Fines and forfeits 312,000 312,000 332,694 20,694 Interest on investments 350,000 350,000 260,263 (89,737) Miscellaneous 102,000 102,000 170,876 68,876 TOTAL REVENUES 21,098,389 20,781,389 21,310,955 529,566 EXPENDITURES General government 6,971,607 6,823,107 6,472,022 351,085 Public safety 12,477,122 12,425,622 11,904,138 521,484 Public works 4,264,550 4,264,550 4,094,051 170,499 General services 180,000 180,000 7,662 172,338 TOTAL EXPENDITURES 23,893,279 23,693,279 22,477,873 1,215,406 DEFICIENCY OF REVENUES UNDER EXPENDITURES (2,794,890) (2,911,890) (1,166,918) 1,744,972 OTHER FINANCING SOURCES (USES) Transfers in 2,628,910 2,678,910 2,685,300 6,390 Transfers out - - (1,400,000) (1,400,000) TOTAL OTHER FINANCING SOURCES (USES)2,628,910 2,678,910 1,285,300 (1,393,610) NET CHANGE IN FUND BALANCE (165,980) (232,980) 118,382 351,362 FUND BALANCES, JANUARY 1 11,726,600 11,726,600 11,726,600 - FUND BALANCES, DECEMBER 31 11,560,620$ 11,493,620$ 11,844,982$ 351,362$ The notes to the financial statements are an integral part of this statement. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 86 CITY OF ST. LOUIS PARK, MINNESOTA PARKS AND RECREATION FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2009 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) REVENUES Property taxes 4,073,118$ 4,073,118$ 4,073,118$ -$ License and permits - - 6,865 6,865 Intergovernmental Other 55,702 55,702 67,622 11,920 Charges for services 1,141,598 1,141,598 1,042,612 (98,986) Interest on investments - - 760 760 Miscellaneous 895,000 895,000 984,559 89,559 TOTAL REVENUES 6,165,418 6,165,418 6,175,536 10,118 EXPENDITURES Culture and recreation Current Personal services 3,520,813 3,503,813 3,414,868 88,945 Supplies 926,251 876,251 745,837 130,414 Other services and charges 1,703,002 1,703,002 1,674,819 28,183 Capital outlay 15,352 15,352 - 15,352 TOTAL EXPENDITURES 6,165,418 6,098,418 5,835,524 262,894 EXCESS OF REVENUES OVER EXPENDITURES - 67,000 340,012 273,012 OTHER FINANCING SOURCES Transfers in - - 33,274 33,274 NET CHANGE IN FUND BALANCES - 67,000 373,286 306,286 FUND BALANCES, JANUARY 1 497,263 497,263 497,263 - FUND BALANCES, DECEMBER 31 497,263$ 564,263$ 870,549$ 306,286$ The notes to the financial statements are an integral part of this statement. Budgeted Amounts Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 87 CITY OF ST. LOUIS PARK, MINNESOTA PROPRIETARY FUNDS ENTERPRISE FUNDS - These funds are established to account for the acquisition and operation of Water, Sewer, Storm Water, Solid Waste and Wireless operations which are entirely or predominantly self-supporting from user charges to the general public. Water Utility Fund - To account for the provision of water services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing and collection. Sewer Utility Fund - To account for the provision of sewer services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing and collection. Solid Waste Fund - To account for the revenue and expenses related to collection, disposal, and recycling of residential solid waste. Financing is provided by charging each property owner a predetermined service fee. Storm Water Utility Fund - To account for the provision of storm water to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing and collection. Wireless Fund - To account for the provision of high speed wireless internet access to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing and collection. INTERNAL SERVICE FUNDS - Internal Service Funds are established to account for the financing of goods and services provided to various City departments on a cost reimbursement basis. Employee Flex Spending Fund - To account for the cost of providing benefits to employees which include pensions, health, long-term disability, life and dental insurance, as well as unemployment and worker’s compensation insurance. Uninsured Loss Fund – To provide funds for major losses incurred which exceed current insurance policy limits. Equipment Replacement Fund - To account for the purchase and replacement of the City’s equipment. Cost of the equipment will be recovered by charging user departments a usage fee throughout the equipment’s useful life. Capital Replacement Fund - To account for the purchase and replacement of the City’s capital. Cost of the capital will be recovered by charging user departments a usage fee throughout the capital asset’s useful life. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 88 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENTS OF NET ASSETS (LIABILITIES) - CONTINUED ON THE FOLLOWING PAGES PROPRIETARY FUNDS DECEMBER 31, 2009 AND 2008 2009 2008 2009 2008 ASSETS CURRENT ASSETS Cash and temporary investments 350$ 4,640,355$ 1,851,591$ 2,083,067$ Receivables Special assessments Delinquent 65,118 76,964 65 63 Deferred 598,950 457,545 32,389 23,513 Accounts 850,686 611,576 846,198 777,650 Accrued interest 8,865 14,019 11,629 13,390 Deposits 700 700 - - Due from other funds - - 371,983 - Due from other governments - - - - Prepaid items - 12,064 - - TOTAL CURRENT ASSETS 1,524,669 5,813,223 3,113,855 2,897,683 NONCURRENT ASSETS Deferred charges 44,721 48,579 - - 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 754,398 676,510 22,278 22,278 Infrastructure 14,036,235 12,386,784 18,594,322 18,491,336 Machinery and equipment 3,352,835 2,620,548 126,897 60,795 Furniture and equipment 31,532 31,532 14,527 14,527 Fleet - - - 19,529 Construction in progress 45,817 1,391,255 20,540 66,367 Total capital assets, at cost 23,097,273 21,983,085 18,844,675 18,740,943 Less accumulated depreciation (9,735,201) (9,247,333) (15,233,525) (15,130,320) Net capital assets 13,362,072 12,735,752 3,611,150 3,610,623 TOTAL NONCURRENT ASSETS 13,406,793 12,784,331 3,611,150 3,610,623 TOTAL ASSETS 14,931,462 18,597,554 6,725,005 6,508,306 The notes to the financial statements are an integral part of this statement. Sewer Utility Business-type Activities Water Utility Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 89 2009 2008 2009 2008 2009 2008 1,999,051$ 2,244,381$ 758,716$ 529,059$ -$ 781,437$ - - - - - - 73 - - - - - 569,646 520,306 278,698 241,914 - 3,530 12,554 14,043 4,820 9,127 - - - - - - - - 400,000 - - - - - - - 67,144 100,291 - - - - - - - - 2,981,324 2,778,730 1,109,378 880,391 - 784,967 - - 8,318 8,923 - - - - - - - - - - - - - - - - 6,182,215 4,809,017 - - - - 14,942,261 13,789,259 - - - - 70,438 - - - - - 18,661 4,410 - - - - - - - - - - - 2,589,563 - - - - 21,213,575 21,192,249 - - - - (5,000,518) (4,497,289) - - - - 16,213,057 16,694,960 - - - - 16,221,375 16,703,883 - - 2,981,324 2,778,730 17,330,753 17,584,274 - 784,967 Business-type Activities - Enterprise Funds - Continued Storm Water UtilitySolid Waste Wireless Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 90 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 91 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENTS OF NET ASSETS (LIABILITIES) - CONTINUED PROPRIETARY FUNDS DECEMBER 31, 2009 AND 2008 Governmental Activities - Internal 2009 2008 Service Funds ASSETS CURRENT ASSETS Cash and temporary investments 4,609,708$ 10,278,299$ 3,507,120$ Receivables Special assessments Delinquent 65,183 77,027 - Deferred 631,412 481,058 - Accounts 2,545,228 2,154,976 - Accrued interest 37,868 50,579 21,844 Deposits 700 700 31,000 Due from other funds 771,983 - - Due from other governments 67,144 100,291 93,908 Prepaid items - 12,064 326,472 TOTAL CURRENT ASSETS 8,729,226 13,154,994 3,980,344 NONCURRENT ASSETS Deferred charges 53,039 57,502 - Capital assets, at cost Land 174,844 174,844 - Buildings and structures 4,767,723 4,767,723 - Improvements other than buildings 6,958,891 5,507,805 - Infrastructure 47,572,818 44,667,379 - Machinery and equipment 3,550,170 2,681,343 3,337,956 Furniture and equipment 64,720 50,469 1,641,829 Fleet - 19,529 6,335,322 Construction in progress 66,357 4,047,185 5,422,433 Total capital assets, at cost 63,155,523 61,916,277 16,737,540 Less accumulated depreciation (29,969,244) (28,874,942) (5,173,744) Net capital assets 33,186,279 33,041,335 11,563,796 TOTAL NONCURRENT ASSETS 33,239,318 33,098,837 11,563,796 TOTAL ASSETS 41,968,544 46,253,831 15,544,140 The notes to the financial statements are an integral part of this statement. Totals Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 92 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENTS OF NET ASSETS (LIABILITIES) - CONTINUED PROPRIETARY FUNDS DECEMBER 31, 2009 AND 2008 2009 2008 2009 2008 LIABILITIES CURRENT LIABILITIES Accounts payable 59,315$ 196,437$ 14,803$ 11,645$ Contracts payable 46,819 43,531 6,345 2,630 Accrued flex spending - - - - Accrued salaries payable 40,970 30,312 6,359 4,589 Accrued interest payable 100,599 51,309 - - Due to other funds 771,983 - - - Due to other governments 31,305 6,852 2,617 2,870 Compensated absences payable 94,905 93,209 15,693 16,251 Bonds payable 120,000 115,000 - - TOTAL CURRENT LIABILITIES 1,265,896 536,650 45,817 37,985 NONCURRENT LIABILITIES Compensated absences payable 40,673 39,947 6,725 6,964 Other postemployment benefits payable 28,304 14,832 4,680 2,586 Bonds payable 6,209,719 6,331,401 - - TOTAL NONCURRENT LIABILITIES 6,278,696 6,386,180 11,405 9,550 TOTAL LIABILITIES 7,544,592 6,922,830 57,222 47,535 NET ASSETS (LIABILITIES) Invested in capital assets, net of related debt 7,032,353 6,289,351 3,611,150 3,610,623 Unrestricted 354,517 5,385,373 3,056,633 2,850,148 TOTAL NET ASSETS (LIABILITIES)7,386,870$ 11,674,724$ 6,667,783$ 6,460,771$ The notes to the financial statements are an integral part of this statement. Sewer UtilityWater Utility Business-type Activities Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 93 2009 2008 2009 2008 2009 2008 144,191$ 140,908$ 37,678$ 33,622$ -$ 27,931$ - - 3,191 30,117 - - - - - - - - 648 642 4,430 5,552 - - - - 52,990 57,708 - - - - 308,226 384,875 - 1,425,197 45,359 43,096 2,140 2,277 - 215 - - 4,367 4,552 - - - - 280,000 270,000 - - 190,198 184,646 693,022 788,703 - 1,453,343 - - 1,872 1,951 - - - - 1,302 724 - - - - 2,599,091 2,879,389 - - - - 2,602,265 2,882,064 - - 190,198 184,646 3,295,287 3,670,767 - 1,453,343 - - 13,333,966 13,545,571 - - 2,791,126 2,594,084 701,500 367,936 - (668,376) 2,791,126$ 2,594,084$ 14,035,466$ 13,913,507$ -$ (668,376)$ WirelessStorm Water UtilitySolid Waste Business-type Activities - Enterprise Funds - Continued Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 94 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 95 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENTS OF NET ASSETS (LIABILITIES) - CONTINUED PROPRIETARY FUNDS DECEMBER 31, 2009 AND 2008 Governmental Activities - Internal 2009 2008 Service Funds LIABILITIES CURRENT LIABILITIES Accounts payable 255,987$ 410,543$ 220,823$ Contracts payable 56,355 76,278 829,630 Accrued flex spending - - 34,362 Accrued salaries payable 52,407 41,095 3,305 Accrued interest payable 153,589 109,017 - Due to other funds 1,080,209 1,810,072 197,250 Due to other governments 81,421 55,310 27,461 Compensated absences payable 114,965 114,012 2,258,671 Bonds payable 400,000 385,000 - TOTAL CURRENT LIABILITIES 2,194,933 3,001,327 3,571,502 NONCURRENT LIABILITIES Compensated absences payable 49,270 48,862 968,002 Other postemployment benefits payable 34,286 18,142 673,620 Bonds payable 8,808,810 9,210,790 - TOTAL NONCURRENT LIABILITIES 8,892,366 9,277,794 1,641,622 TOTAL LIABILITIES 11,087,299 12,279,121 5,213,124 NET ASSETS (LIABILITIES) Invested in capital assets, net of related debt 23,977,469 23,445,545 11,563,796 Unrestricted 6,903,776 10,529,165 (1,232,780) TOTAL NET ASSETS (LIABILITIES)30,881,245$ 33,974,710$ 10,331,016$ The notes to the financial statements are an integral part of this statement. Totals Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 96 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS (LIABILITIES) - CONTINUED ON THE FOLLOWING PAGES PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008 2009 2008 2009 2008 OPERATING REVENUES Charges for services 3,983,688$ 3,344,301$ 5,152,609$ 4,482,087$ Other 31,491 29,021 - - Rent 203,134 211,062 - - TOTAL OPERATING REVENUES 4,218,313 3,584,384 5,152,609 4,482,087 OPERATING EXPENSES Personal services 1,023,886 807,124 227,821 313,496 Supplies 451,216 548,507 77,478 67,716 Professional services 285,674 213,513 26,012 45,485 Insurance 29,958 26,724 40,274 36,887 Utilities 455,739 463,039 48,534 47,508 Repairs and maintenance 542,372 336,107 113,450 44,611 Depreciation 487,869 439,627 122,734 149,610 Disposal charges 79,877 2,880 3,443,345 3,522,413 Other 490,645 445,676 129,032 257,660 TOTAL OPERATING EXPENSES 3,847,236 3,283,197 4,228,680 4,485,386 OPERATING INCOME (LOSS)371,077 301,187 923,929 (3,299) NONOPERATING REVENUES (EXPENSES) Interest on investments 75,168 63,779 46,765 77,352 Intergovernmental - - - 23,055 Miscellaneous revenues 76,649 18,470 562 1,197 Net gain on disposal of assets - - - - Net amortization of bond premiums/deferred charges (2,176) (754) - - Interest expense (240,425) (108,041) - - TOTAL NONOPERATING REVENUES (EXPENSES)(90,784) (26,546) 47,327 101,604 INCOME (LOSS) BEFORE TRANSFERS 280,293 274,641 971,256 98,305 TRANSFERS IN - - - - TRANSFERS OUT (4,568,147) (533,656) (764,244) (741,334) CHANGE IN NET ASSETS (4,287,854) (259,015) 207,012 (643,029) NET ASSETS (LIABILITIES), JANUARY 1 11,674,724 11,933,739 6,460,771 7,103,800 NET ASSETS (LIABILITIES), DECEMBER 31 7,386,870$ 11,674,724$ 6,667,783$ 6,460,771$ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds Water Utility Sewer Utility Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 97 2009 2008 2009 2008 2009 2008 2,458,383$ 2,347,995$ 1,699,557$ 1,529,180$ 140$ 32,592$ - - - - - - - - - - - - 2,458,383 2,347,995 1,699,557 1,529,180 140 32,592 51,175 42,171 196,411 253,378 9,737 34,938 39,500 57,180 8,874 6,589 245 29,486 10,231 10,468 186,209 201,793 128,161 195,527 8,554 7,978 3,621 3,749 1,583 6,610 - - 16,500 17,307 - - - - 141,605 12,083 - - - - 503,229 445,774 - - 1,981,105 1,982,594 - - - - 34,975 35,286 87,318 76,420 11,982 49,103 2,125,540 2,135,677 1,143,767 1,017,093 151,708 315,664 332,843 212,318 555,790 512,087 (151,568) (283,072) 51,667 79,604 10,951 22,989 17,274 - 100,387 101,301 67,144 864,752 - - 245 141 - - 16,000 1,059,114 - - - - - - - - (307) (307) - - - - (143,128) (154,799) - - 152,299 181,046 (65,340) 732,635 33,274 1,059,114 485,142 393,364 490,450 1,244,722 (118,294) 776,042 - - - - 786,670 - (288,100) (353,299) (368,491) (328,438) - - 197,042 40,065 121,959 916,284 668,376 776,042 2,594,084 2,554,019 13,913,507 12,997,223 (668,376) (1,444,418) 2,791,126$ 2,594,084$ 14,035,466$ 13,913,507$ -$ (668,376)$ Business-type Activities - Enterprise Funds - Continued WirelessSolid Waste Storm Water Utility Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 98 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 99 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS (LIABILITIES) - CONTINUED PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008 Governmental Activities - Internal 2009 2008 Service Funds OPERATING REVENUES Charges for services 13,294,377$ 11,736,155$ 626,983$ Other 31,491 29,021 47,741 Rent 203,134 211,062 - TOTAL OPERATING REVENUES 13,529,002 11,976,238 674,724 OPERATING EXPENSES Personal services 1,509,030 1,451,107 583,618 Supplies 577,313 709,478 181,423 Professional services 636,287 666,786 170,102 Insurance 83,990 81,948 951 Utilities 520,773 527,854 - Repairs and maintenance 797,427 392,801 - Depreciation 1,113,832 1,035,011 984,996 Disposal charges 5,504,327 5,507,887 - Other 753,952 864,145 398,602 TOTAL OPERATING EXPENSES 11,496,931 11,237,017 2,319,692 OPERATING INCOME (LOSS)2,032,071 739,221 (1,644,968) NONOPERATING REVENUES (EXPENSES) Interest on investments 201,825 243,724 94,006 Intergovernmental 167,531 989,108 - Miscellaneous revenues 93,456 1,078,922 97,930 Net gain on disposal of assets - - 91,148 Net amortization of bond premiums/deferred charges (2,483) (1,061) - Interest expense (383,553) (262,840) - TOTAL NONOPERATING REVENUES (EXPENSES)76,776 2,047,853 283,084 INCOME (LOSS) BEFORE TRANSFERS 2,108,847 2,787,074 (1,361,884) TRANSFERS IN 786,670 - 13,320,633 TRANSFERS OUT (5,988,982) (1,956,727) (7,478,539) CHANGE IN NET ASSETS (3,093,465) 830,347 4,480,210 NET ASSETS (LIABILITIES), JANUARY 1 33,974,710 33,144,363 5,850,806 NET ASSETS (LIABILITIES), DECEMBER 31 30,881,245$ 33,974,710$ 10,331,016$ The notes to the financial statements are an integral part of this statement. Totals Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 100 2009 2008 2009 2008 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 3,849,644$ 3,559,762$ 5,075,183$ 4,604,411$ Receipts from interfund services provided - - - - Other receipts 76,649 18,470 562 1,197 Payments for interfund services used (29,010) (29,010) (29,000) (25,000) Payments to suppliers (2,428,241) (2,164,761) (3,842,252) (4,006,243) Payments to employees (997,334) (772,545) (224,754) (309,987) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 471,708 611,916 979,739 264,378 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in - - - - Transfers out (4,568,147) (533,656) (764,244) (741,334) Borrowing (payments) on interfund balances 771,983 - (371,983) - Intergovernmental receipts 24,453 - - 23,681 Intergovernmental payments - (1,732) (253) - NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES (3,771,711) (535,388) (1,136,480) (717,653) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (1,114,189) (1,465,208) (123,261) (136,532) Proceeds from sale of assets - - - - Proceeds from bonds issued (net)- 4,056,895 - - Principal paid on bonds (115,000) (90,000) - - Interest paid on debt (191,135) (112,652) - - NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (1,420,324) 2,389,035 (123,261) (136,532) CASH FLOWS FROM INVESTING ACTIVITIES Interest received from investments 80,322 65,145 48,526 91,769 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (4,640,005) 2,530,708 (231,476) (498,038) CASH AND CASH EQUIVALENTS, JANUARY 1 4,640,355 2,109,647 2,083,067 2,581,105 CASH AND CASH EQUIVALENTS, DECEMBER 31 350$ 4,640,355$ 1,851,591$ 2,083,067$ The notes to the financial statements are an integral part of this statement. Water Utility Sewer Utility CITY OF ST. LOUIS PARK, MINNESOTA STATEMENTS OF CASH FLOWS - CONTINUED ON THE FOLLOWING PAGES PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008 Business-type Activities - Enterprise Funds Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 101 2009 2008 2009 2008 2009 2008 2,408,970$ 2,345,453$ 1,662,773$ 1,553,202$ 3,670$ 29,062$ - - - - - - 245 141 - - 16,000 1,059,114 - - (10,000) (10,000) - - (2,071,082) (2,088,596) (456,997) (654,024) (169,902) (266,273) (51,169) (42,007) (197,219) (250,080) (9,737) (40,618) 286,964 214,991 998,557 639,098 (159,969) 781,285 - - - - 786,670 - (288,100) (353,299) (368,491) (328,438) - - (400,000) - (76,649) (68,340) (1,425,197) - 102,650 104,729 100,154 763,078 - 152 - - - - (215) - (585,450) (248,570) (344,986) 366,300 (638,742) 152 - - (21,326) (1,009,846) - - - - - - - - - - - - - - - - (270,000) (250,000) - - - - (147,846) (166,787) - - - - (439,172) (1,426,633) - - 53,156 86,548 15,258 25,387 17,274 - (245,330) 52,969 229,657 (395,848) (781,437) 781,437 2,244,381 2,191,412 529,059 924,907 781,437 - 1,999,051$ 2,244,381$ 758,716$ 529,059$ -$ 781,437$ WirelessSolid Waste Storm Water Utility Business-type Activities - Enterprise Funds Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 102 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 103 Governmental Activities - Internal 2009 2008 Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 13,000,240$ 12,091,890$ -$ Receipts from interfund services provided - - 689,023 Other receipts 93,456 1,078,922 97,930 Payments for interfund services used (68,010) (64,010) - Payments to suppliers (8,968,474) (9,179,897) (682,987) Payments to employees (1,480,213) (1,415,237) (192,655) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 2,576,999 2,511,668 (88,689) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 786,670 - 7,962,487 Transfers out (5,988,982) (1,956,727) (2,120,393) Borrowing (payments) on interfund balances (1,501,846) (68,340) (112,667) Intergovernmental receipts 227,257 891,640 3,141 Intergovernmental payments (468) (1,732) (94,414) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES (6,477,369) (1,135,159) 5,638,154 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (1,258,776) (2,611,586) (5,683,764) Proceeds from sale of assets - - 91,148 Proceeds from bonds issued (net)- 4,056,895 - Principal paid on bonds (385,000) (340,000) - Interest paid on debt (338,981) (279,439) - NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (1,982,757) 825,870 (5,592,616) CASH FLOWS FROM INVESTING ACTIVITIES Interest received from investments 214,536 268,849 94,842 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (5,668,591) 2,471,228 51,691 CASH AND CASH EQUIVALENTS, JANUARY 1 10,278,299 7,807,071 3,455,429 CASH AND CASH EQUIVALENTS, DECEMBER 31 4,609,708$ 10,278,299$ 3,507,120$ The notes to the financial statements are an integral part of this statement. CITY OF ST. LOUIS PARK, MINNESOTA STATEMENTS OF CASH FLOWS - CONTINUED PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008 Totals Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 104 2009 2008 2009 2008 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss)371,077$ 301,187$ 923,929$ (3,299)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Miscellaneous 76,649 18,470 562 1,197 Depreciation 487,869 439,627 122,734 149,610 Decrease (increase) in assets Accounts receivable (239,110) 20,731 (68,548) 139,934 Special assessments (129,559) (45,353) (8,878) (17,610) Prepaid items 12,064 (12,064) - - Increase (decrease) in liabilities Accounts payable (137,122) (19,608) 3,158 (3,704) Contracts payable 3,288 (125,653) 3,715 (5,259) Accrued salaries payable 10,658 8,288 1,770 1,586 Accrued flex spending - - - - Compensated absences payable 2,422 11,459 (797) (663) Other postemployment benefits payable 13,472 14,832 2,094 2,586 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 471,708$ 611,916$ 979,739$ 264,378$ SUPPLEMENTAL SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization of bond premiums and issuance costs 2,176$ 754$ -$ -$ Purchase of capital assets on account -$ -$ -$ -$ Disposal of capital assets -$ -$ 19,530$ -$ Transfer of capital assets from other funds -$ -$ -$ -$ Transfer of capital assets to other funds -$ -$ -$ -$ The notes to the financial statements are an integral part of this statement. CITY OF ST. LOUIS PARK, MINNESOTA STATEMENTS OF CASH FLOWS - CONTINUED PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008 Business-type Activities - Enterprise Funds Water Utility Sewer Utility Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 105 2009 2008 2009 2008 2009 2008 332,843$ 212,318$ 555,790$ 512,087$ (151,568)$ (283,072)$ 245 141 - - 16,000 1,059,114 - - 503,229 445,774 - - (49,340) (2,542) (36,784) 24,022 3,530 (3,530) (73) - - - - - - - - - - - 3,283 4,910 4,056 (69,742) (27,931) 14,453 - - (26,926) (276,341) - - 6 164 (1,122) 2,646 - (1,839) - - - - - - - - (264) (72) - (3,841) - - 578 724 - - 286,964$ 214,991$ 998,557$ 639,098$ (159,969)$ 781,285$ -$ -$ 307$ 307$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Business-type Activities - Enterprise Funds Solid Waste Storm Water Utility Wireless Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 106 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 107 Governmental Activities - Internal 2009 2008 Service Funds RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss)2,032,071$ 739,221$ (1,644,968)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Miscellaneous 93,456 1,078,922 97,930 Depreciation 1,113,832 1,035,011 984,996 Decrease (increase) in assets Accounts receivable (390,252) 178,615 14,299 Special assessments (138,510) (62,963) - Prepaid items 12,064 (12,064) 7,175 Increase (decrease) in liabilities Accounts payable (154,556) (73,691) 60,916 Contracts payable (19,923) (407,253) - Accrued salaries payable 11,312 10,845 119 Accrued flex spending - - (566) Compensated absences payable 1,361 6,883 69,476 Other postemployment benefits payable 16,144 18,142 321,934 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 2,576,999$ 2,511,668$ (88,689)$ SUPPLEMENTAL SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization of bond issuance costs 2,483$ 1,061$ -$ Purchase of capital assets on account -$ -$ 829,630$ Disposal of capital assets 19,530$ -$ -$ Transfer of capital assets from other funds -$ -$ 5,358,146$ Transfer of capital assets to other funds -$ -$ (5,358,146)$ The notes to the financial statements are an integral part of this statement. Totals CITY OF ST. LOUIS PARK, MINNESOTA STATEMENTS OF CASH FLOWS - CONTINUED PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 108 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 109 NOTES TO FINANCIAL STATEMENTS Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 110 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 111 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of St. Louis Park (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 accounting principles generally accepted in the United States of America, 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 components 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 of St. Louis Park’s tax increment districts. Separate financial statements are not prepared for the EDA. The following funds are maintained by the EDA: Debt Service Funds – 2001A General Obligation Tax Increment Refunding, 2002A General Obligation Tax Increment Refunding, 2004 General Obligation Tax Increment Refunding, 2005B General Obligation Tax Increment Refunding, 2008B General Obligation Tax Increment Bonds, and 2009A General Obligation Tax Increment Bond. 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. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 112 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the non-fiduciary 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. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, service, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among programs revenue 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 government considers revenue to be available if they are collected within 60 days 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. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 113 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Property taxes, 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 government. Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Deferred revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as deferred revenue. On the modified accrual basis, receivables that will not be collected within the available period have also been reported as deferred revenue in the fund financial statements. The City reports the following major governmental funds: The General fund - the government’s primary operating fund. It accounts for all financial resources 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. Housing Rehabilitation Fund - to account for revenues from revenue bond fees and expenditures related to preventing deterioration of multi-unit housing. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 114 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 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 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. 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 earnings, 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. The City reports the following major enterprise funds: Water Utility fund - to account 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. Sewer Utility fund - to account 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. Solid Waste fund - to account for the revenue and expenses related to collection, disposal, and recycling of residential solid waste. Financing is provided by charging each property owner a predetermined service fee. Storm Water Utility fund - to account 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. Wireless fund - to account for the provision of high speed wireless internet access to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing and collection. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 115 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Additionally, the government reports the following fund types: 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. 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 government has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfund activity has been eliminated from government-wide financial statements. Exceptions to this general rule are charges between the government’s enterprise fund functions and various other functions of the government. 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 contribution, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating 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 enterprise funds and of the government’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service 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 non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 116 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED D. Assets, Liabilities, and Net Assets or Equity 1. Deposits and Investments The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from date of acquisition. Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments. Earnings from investments are allocated to individual funds on the basis of the fund’s equity in the deposit and investments pool. The City 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 development or redevelopment capital projects fund. The City may also invest idle funds as authorized by Minnesota statutes, as follows: a) Direct obligations or obligations guaranteed by the United States or its agencies. b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. c) General obligations of a state or local government with taxing powers rated “A” or better; revenue obligations rated “AA” or better. d) General obligations of the Minnesota Housing Finance Agency rated “A” or better. e) Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System. f) Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. g) Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions qualified as a “depository” by the government entity, 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, or certain Minnesota securities broker-dealers. h) Guaranteed investment contracts (GIC’s) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 117 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED The Minnesota Municipal Money Market fund (the 4M fund) is a customized cash management and investment program for Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M fund is a unique investment alternative designed to address the daily and long term investment needs of Minnesota cities and other municipal entities. The 4M fund is an external investment pool not registered with the Securities and Exchange Commission; however, it follows the same regulatory rules of the SEC under rule 2a7. Allowable under Minnesota statutes, the 4M fund is comprised of top quality, rated investments. The reported value of the pool is the same as the fair value of the pool shares. For more information on these investments visit: www.mbia.com. Financial statements of the 4M fund can be obtained by contacting Voyageur Asset Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240. 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. Investments are stated at their estimated fair value at the end of the year. 2. 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 “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 118 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Property Taxes 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. The taxes are collected by the County and remitted to the City on or before July 5 and December 1 of the same year. Collections for November and December are received the following January 26. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. In the governmental fund financial statements, 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 the year-end are classified as delinquent and due from the 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. In the government-wide financial statements, property taxes are recognized as revenues in the year for which they are levied. 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 2009 and 2008 totaled $1,975,069 and $1,696,198 respectively. Receipt of property taxes from this “fiscal disparities pool” does not increase or decrease total tax revenue. Accounts Receivable Accounts receivable include amounts billed for services provided before year end. Unbilled utility enterprise fund receivables are also included for services provided in 2009. The City annually certifies delinquent water and sewer accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 119 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Special Assessments Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with Minnesota 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. In 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 are collected by the County and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred revenues. In government-wide financial statements, special assessments are recognized as revenues in the year for which they are levied. 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. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to Minnesota 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. Market Value Homestead Credit The Market Value Homestead Credit program replaces the Homestead and Agriculture 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 consistent with the policies describe in Note 1C. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 120 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 3. Inventories and Prepaid Items 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. Certain cash payment to vendors reflects costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements. 1. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. 5. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, an similar items), 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 (amount not rounded) and an estimated useful life of two years or more. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets would be 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. Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives: Assets Years Infrastructure 5 - 100 Buildings/Structures 5 - 30 Improvements other than buildings 5 - 30 Vehicles/Fleet 2 - 25 Machinery and equipment 5 - 30 Office furniture and equipment 3 - 20 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 121 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Capital assets of the Water Utility and Sewer Utility operations include the water distribution system and sewage 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 contributed to the Sewer and Water 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. 6. 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. 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 severance. 7. Other Postemployment Benefits Under Minnesota statute 471.61, subdivision 2b., public employers must allow retirees and their dependents to continue coverage indefinitely in an employer-sponsored health care plan, under the following conditions: 1) Retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in group plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees may obtain dependent coverage immediately before retirement. All premiums are funded on a pay-as-you-go basis. The liability was actuarially determined, in accordance with GASB Statement 45, at January 1, 2009. 8. 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. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 122 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED In the fund financial statements, governmental fund types recognized bond premium 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. 9. Interfund Transactions Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund are accounted for as expenditures/expenses in the fund that is reimbursed. 10. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use of a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. 11. Comparative Data/Reclassifications Comparative total data for the prior year have been presented only for individual enterprise funds in the fund financial statements in order to provide an understanding of the changes in the financial position and operations of these funds. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation. 12. 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”. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 123 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are legally adopted for the General and certain special revenue funds. A budget is not presented for the Housing Rehabilitation fund since the City does not legally required to adopt a budget for the fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Individual amendments were not material in relation to the original appropriations that were adjusted. Budgeted expenditure appropriations lapse the 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. 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 2009, the budget was amended. 6. Formal budgetary integration is employed as a management control device during the year for the General fund and special revenue funds. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 124 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - CONTINUED 7. Legal debt obligation indentures determine the appropriation level of 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. Monitoring of budgets is maintained at the expenditure category level (i.e., personal services, supplies, 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. 10. The City Council may authorize transfer of budgeted amounts between City funds. B. Excess of Expenditures over Appropriations The following fund had disbursements over budgeted amounts that were approved by the City Council through the disbursement process. The excess was funded with revenue in excess of budget and available fund balance. Excess of Expenditures Over Budget Actual Appropriations Nonmajor Cable Television 503,500$ 741,070$ 237,570$ Fund Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 125 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - CONTINUED C. Deficit Fund Equity The following funds had deficit fund balances as of December 31, 2009: Amount Street Capital Projects 4,970,481$ Nonmajor special revenue Community Development 5,698 Nonmajor capital projects Fire Station Bonds 250 Internal service Employee Flex Spending 3,892,120 Fund The deficits will be removed with future revenue, transfers, and tax increment receipts. It is unlikely that the deficit in the Employee Flex Spending fund will be eliminated, but the City has processes in place to manage and review the deficit annually. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 126 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS A. Deposits and Investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City’s deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes: • United States government Treasury bills, Treasury notes, Treasury bonds; • Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; • 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; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • 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 • Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 127 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED At year-end, the carrying amount of the City’s deposits was $879,060 and the bank balance was $1,491,919. Of the bank balance, $250,000 was covered by federal depository insurance and $1,241,919 was covered by collateral held by the City’s agent in the City’s name. A reconciliation of cash and investments as reported on the statement of net assets follows: Carrying amount of deposits 879,060$ Investments 63,359,846 Petty cash 3,951 Total 64,242,857$ Investments As of December 31, 2009, the City had the following investments that are insured or registered, or securities held by the City’s agent in the City’s name: Fair Value Credit Segmented and Quality/Time Carrying Ratings (1)Distribution (2)Amount Pooled investments Broker Money Market Funds N/A Less than 6 months 14,900,836$ 4M Money Market Mutual Fund P1 Less than 6 months 11,478,617 Non-pooled investments Negotiable Certificates of Deposit N/A 6 months to 1 year 488,599 U.S. Government Agency Securities AAA Less than 6 months 1,007,600 U.S. Government Agency Securities AAA 1 to 3 years 11,302,110 U.S. Government Agency Securities AAA More than 3 years 15,744,193 State and Local Government Securities AAA 1 to 3 years 102,349 State and Local Government Securities AAA More than 3 years 7,367,492 U.S. Treasury STRIPS N/A 6 months to 1 year 968,050 Total investments 63,359,846$ Types of Investments 1. Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk. 2. Interest rate risk is disclosed using the segmented time distribution method. N/A Indicated not applicable or available. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 128 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED The investments of the City are subject to the following risks: • Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota Statutes and the City’s investment policy limit the City’s investments to the list on page 82 of the notes. • Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City’s investment policy does not address custodial credit risk but typically limits its exposure by purchasing insured or registered investments. • Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. In accordance with its investment policy, the City diversifies its investment portfolio to eliminate the risk of loss resulting from over-concentration of assets in a specific maturity, specific issuer, or a specific class of securities. • Interest rate risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the City manages its exposure to declines in fair values by selecting maturities that provide stability of income and reasonable liquidity. B. Receivables 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. As of December 31, 2009, the loans receivable balance was $8,985,606. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 129 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED C. Deferred Revenue Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Delinquent property taxes receivable General 483,131$ -$ Redevelopment District 19,802 - Special assessments not yet due Permanent Improvement Revolving 1,097,904 - Housing rehabilitation 1,904,773 - Development EDA 188,378 - Nonmajor funds 167,363 - Bond reimbursement payments not yet due Debt Service fund 3,870,000 - Revenue not yet earned General - 317,588 Parks and Recreation - 25,127 Housing rehabilitation - 600 Total governmental funds 7,731,351$ 343,315$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 130 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED D. Capital assets Capital asset activity for the year ended December 31, 2009 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities Capital assets not being depreciated Land 12,370,123$ 2,109,005$ -$ 14,479,128$ Construction in progress 6,130,170 9,467,826 (5,956,266) 9,641,730 Total capital assets not being depreciated 18,500,293 11,576,831 (5,956,266) 24,120,858 Capital assets, being depreciated Buildings 26,731,891 409,000 (120,956) 27,019,935 Machinery and equipment 12,532,971 1,436,084 (818,929) 13,150,126 Other improvements 14,991,886 2,161,282 (556,680) 16,596,488 Infrastructure 62,925,291 7,269,336 (52,000) 70,142,627 Total capital assets being depreciated 117,182,039 11,275,702 (1,548,565) 126,909,176 Less accumulated depreciation for Buildings (6,788,236) (665,182) 104,670 (7,348,748) Machinery and equipment (5,848,667) (1,085,615) 677,863 (6,256,419) Other improvements (6,328,026) (722,263) 392,000 (6,658,289) Infrastructure (27,899,631) (2,390,188) 52,000 (30,237,819) Total accumulated depreciation (46,864,560) (4,863,248) 1,226,533 (50,501,275) Total capital assets being depreciated, net 70,317,479 6,412,454 (322,032) 76,407,901 Governmental activities capital assets, net 88,817,772$ 17,989,285$ (6,278,298)$ 100,528,759$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 131 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED Beginning Ending Balance Increases Decreases Balance Business-type Activities Capital assets not being depreciated Land 174,844$ -$ -$ 174,844$ Construction in progress 4,047,185 66,357 (4,047,185) 66,357 Total capital assets not being depreciated 4,222,029 66,357 (4,047,185) 241,201 Capital assets being depreciated: Buildings 4,767,723 - - 4,767,723 Improvements other than buildings 5,507,805 1,451,086 - 6,958,891 Infrastructure 44,667,379 2,905,439 - 47,572,818 Machinery, furniture and equipment 2,751,341 883,079 (19,530) 3,614,890 Total capital assets being depreciated 57,694,248 5,239,604 (19,530) 62,914,322 Less accumulated depreciation for Buildings (2,939,176) (127,779) - (3,066,955) Improvements other than buildings (1,039,184) (228,728) - (1,267,912) Infrastructure (24,014,354) (631,943) - (24,646,297) Machinery, furniture and equipment (882,228) (125,382) 19,530 (988,080) Total accumulated depreciation (28,874,942) (1,113,832) 19,530 (29,969,244) Total capital assets being depreciated, net 28,819,306 4,125,772 - 32,945,078 Business-type activities capital assets, net 33,041,335$ 4,192,129$ (4,047,185)$ 33,186,279$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 132 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED Depreciation expense was charged to functions/programs of the City as follows: Governmental activities General government 124,035$ Public safety 188,573 Public works 2,426,654 Public information 12,726 Culture and recreation 1,092,319 Economic development 33,945 Internal service 984,996 Total depreciation expense - governmental activities 4,863,248$ Business-type activities Water Utility 487,869$ Sewer Utility 122,734 Storm Water Utility 503,229 Total depreciation expense - business-type activities 1,113,832$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 133 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED Construction Commitments The government has active construction projects as of December 31, 2009. 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: Spent Remaining to date Commitment Highway 7/Wooddale Interchange 2,476,321$ 10,610,234$ Commercial Meter Replacement 157,694 95,198 SW Regional trail at Beltline Boulevard 28,463 12,537 West 36th & Wooddale Avenue Improvement 262,377 33,868 Park Place Boulevard 4,143,738 172,199 Municipal Service Center Renovation 4,933,930 3,744,107 Flood Area #25 11,186 47,814 Street Improvement for Excelsior Boulevard 9,482 25,861 2009 Local Street Rehabilitation and Watermain 1,330,838 88,293 Fern Hill Park Paving and Earthwork 394,753 14,200 WRP #1 Rehabilitation 19,672 65,008 West 36th Street Streetscape 511,217 171,896 2009 MSA Street Improvement Project 618,060 32,529 MSA Street Rehabilitation - Texas Avenue 84,555 24,270 City Hall Exterior Renovation 47,255 27,740 Highway 7/Louisiana Interchange 278,569 27,979 Total 15,308,110$ 15,193,733$ Project Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 134 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED E. Interfund Receivables, Payables, and Transfers Individual fund receivable and payable balances at December 31, 2009 are as follows: Amount Permanent Improvement Revolving Street Capital Projects 6,229,175$ Nonmajor governmental 151,488 Internal service funds 197,250 Storm Water 308,226 Development EDA Housing Rehabilitation 1,597,491 Redevelopment District 860,564 Redevelopment District Debt Service 52,838 Sewer Utility Water Utility 371,983 Solid Waste Water Utility 400,000 Total 10,169,015$ Payable FundReceivable Fund The $6,229,175 is to fund expenditures on capital projects that have been expended with future MSA reimbursement. In 2003, a Council resolution approved an internal loan in the amount of $700,000 to the Storm Water Utility Fund for infrastructure improvements to be repaid by future user charges. The outstanding balance due to PIR is $308,226. The other amounts are for balances owed between funds for such items as wage and project reimbursements, miscellaneous receipts, and to eliminate negative cash. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 135 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED Interfund transfers at December 31, 2009 are as follows: Streets General Parks and Debt Service Capital Fund Recreation Fund Projects Transfer out General -$ -$ -$ -$ Housing Rehabilitation 185,055 - - - Debt Service - - - - Permanent Improvement Revolving 56,390 18,431 - - Development EDA - - - - Redevelopment District - - 5,535,989 1,356,317 Nonmajor governmental 439,000 - - - Water Utility enterprise 584,020 - - - Sewer Utility enterprise 764,244 - - - Solid Waste enterprise 288,100 - - - Storm Water Utility enterprise 368,491 - - - Internal service - 14,843 - - Total transfers 2,685,300$ 33,274$ 5,535,989$ 1,356,317$ Nonmajor Redevelopment Governmental Wireless Internal District Funds Enterprise Service Total Transfer out General -$ -$ -$ 1,400,000$ 1,400,000$ Housing Rehabilitation - - - - 185,055 Debt Service 197,750 - - - 197,750 Permanent Improvement Revolving - - - - 74,821 Development EDA - - 786,670 - 786,670 Redevelopment District - - - - 6,892,306 Nonmajor governmental - 130,669 - 472,810 1,042,479 Water Utility enterprise - - - 3,984,127 4,568,147 Sewer Utility enterprise - - - - 764,244 Solid Waste enterprise - - - - 288,100 Storm Water Utility enterprise - - - - 368,491 Internal service - - - - 14,843 Total transfers 197,750$ 130,669$ 786,670$ 5,856,937$ 16,582,906$ Fund Fund Transfer in: Transfer in: Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services provided by another fund. All of the City’s interfund transfers fall under that category. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 136 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED F. Long-term debt General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. The original amount of general obligation bonds issued was $14,855,000. General obligation bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as 10-year serial bonds. General Obligation Improvement Bonds The following bonds were issued to finance various improvements and will be repaid by ad valorem tax levies. Each tax levy equals 105 percent of the amount required for debt service. The excess of 5 percent is to cover any delinquencies in tax payments. Authorized Issue Maturity Balance at and Issued Date Date Year End G.O. Improvement, Bonds Series 1999A 2,500,000$ 4.45 - 4.55 %06/01/99 02/01/11 600,000$ G.O. Improvement, Bonds Series 2000 4,505,000 5.38 - 5.90 05/01/00 02/01/30 3,870,000 G.O. Improvement, Bonds Series 2003 4,145,000 3.15 - 3.70 05/01/03 02/01/14 2,240,000 General Obligation Bonds Series 2005A 3,705,000 3.50 - 3.75 05/25/05 02/01/16 2,880,000 Total General Obligation Bonds 9,590,000$ Interest RateDescription The annual debt service to maturity for general obligation improvement bonds are as follows: Year Ending December 31,Principal Interest Total 2010 1,175,000$ 410,195$ 1,585,195$ 2011 1,230,000 364,229 1,594,229 2012 950,000 322,745 1,272,745 2013 990,000 286,368 1,276,368 2014 1,035,000 247,750 1,282,750 2015-2019 1,630,000 905,251 2,535,251 2020-2024 975,000 623,144 1,598,144 2025-2029 1,300,000 290,575 1,590,575 2030 305,000 8,997 313,997 Total 9,590,000$ 3,459,254$ 13,049,254$ Governmental Activities Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 137 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED General Obligation Tax Increment Bonds The following bonds were issued for development projects. The additional tax increments resulting from increased tax capacity of the redevelopment properties will be used to retire the related debt. Authorized Issue Maturity Balance at and Issued Date Date Year End Tax Increment Refunding Bonds, Series 2004A 7,490,000$ 2.50 - 3.70 %04/07/04 02/01/18 1,415,000$ Tax Increment Bonds, Series 2008B 5,490,000 3.25 - 4.63 12/11/08 02/01/24 5,490,000 Tax Increment Refunding Bonds, Series 2009A 2,000,000 2.00 - 2.25 06/11/09 02/01/11 1,500,000 Total G.O. Tax Increment Bonds 8,405,000$ Rate Interest Description The annual debt service to maturity for general obligation tax increment bonds are as follows: Year Ending December 31,Principal Interest Total 2010 495,000$ 239,694$ 734,694$ 2011 500,000 234,744 734,744 2012 810,000 224,788 1,034,788 2013 315,000 209,031 524,031 2014 340,000 197,963 537,963 2015-2019 3,385,000 835,145 4,220,145 2020-2024 2,560,000 303,356 2,863,356 Total 8,405,000$ 2,244,721$ 10,649,721$ Governmental Activities Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 138 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED General Obligation Revenue Bonds The following bonds were issued to finance improvements to the water and storm water utility system. They will be retired by user charges and are backed by the full faith and credit of the City. Authorized Issue Maturity Balance at and Issued Date Date Year End G.O. Storm Water Utility Revenue Bonds, Series 2001 3,265,000$ 4.35 - 4.85 %05/01/01 02/01/16 1,760,000$ G.O. Utility Revenue Bonds, Series 2007 3,665,000 4.00 06/05/07 08/01/23 3,350,000 G.O. Utility Revenue Bonds, Series 2008A 4,075,000 3.25-4.25 12/11/08 08/01/20 4,075,000 Total G.O. Revenue Bonds 9,185,000$ Rate Interest Description The annual debt service to maturity for all general obligation revenue bonds are as follows: Year Ending December 31,Principal Interest Total 2010 400,000$ 363,828$ 763,828$ 2011 755,000 346,553 1,101,553 2012 785,000 317,255 1,102,255 2013 820,000 286,623 1,106,623 2014 855,000 254,448 1,109,448 2015-2019 3,920,000 777,040 4,697,040 2020-2023 1,650,000 139,223 1,789,223 Total 9,185,000$ 2,484,970$ 11,669,970$ Business-type Activities Compensated Absences This liability represents vested benefits earned by employees through the end of the year, which will be paid at termination of employment in future years. Compensated absences are paid out of the employee benefits internal service fund. Total Compensated Absences Payable $ 3,390,908 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 139 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED Changes in long-term liabilities Long-term liability activity for the year ended December 31, 2009, was as follows: Beginning Ending Due Within Balance Increases Decreases Balance One Year Bonds payable G.O. Improvement bonds 10,715,000$ -$ (1,125,000)$ 9,590,000$ 1,175,000$ G.O. Tax Increment bonds 15,995,000 2,000,000 (9,590,000) 8,405,000 495,000 Add: Premiums on bonds 17,517 10,202 (7,837) 19,882 - Total bonds payable 26,727,517 2,010,202 (10,722,837) 18,014,882 1,670,000 Compensated absences payable 3,157,197 2,087,983 (2,018,507) 3,226,673 2,258,671 Other postemployment benefits payable 351,686 399,501 (77,567) 673,620 - Governmental activity long-term liabilities 30,236,400$ 4,497,686$ (12,818,911)$ 21,915,175$ 3,928,671$ Business-type activities: Bonds payable G.O. Revenue bonds 9,570,000$ -$ (385,000)$ 9,185,000$ 400,000$ Add: Premiums on bonds 25,790 - (1,980) 23,810 - Total bonds payable 9,595,790 - (386,980) 9,208,810 400,000 Compensated absences payable 162,874 100,069 (98,708) 164,235 114,965 Other postemployment benefits payable 18,142 21,424 (5,280) 34,286 - Business-type activity long-term liabilities 9,776,806$ 121,493$ (490,968)$ 9,407,331$ 514,965$ Refunding Issue On June 11, 2009, the City issued $2,000,000 of G.O. Tax Increment Refunding Bonds, Series 2009A. The bonds bear an average interest rate of 2.12 percent and refunded the Series 2001 G.O. Tax Increment bonds on August 1, 2009. As a result of the refunding issue, the City saved $44,575 in debt service payments and achieved an economic gain (the present value of the difference between old debt service and new debt service) of $44,064. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 140 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 III. DETAILED NOTES ON ALL FUNDS - CONTINUED G. Reserved and Designated Fund Balances Reserved and designated fund balances at December 31, 2009 are summarized as follows: Debt Special Capital General Service Revenue Projects Total Reserved for: Inventory 13,719$ -$ 233,467$ -$ 247,186$ E-911 funds 558,487 - - - 558,487 Loan receivable - noncurrent - - 2,513,425 2,595,734 5,109,159 Debt Service - 2,198,070 - - 2,198,070 Total reserved fund balance 572,206$ 2,198,070$ 2,746,892$ 2,595,734$ 8,112,902$ Designated for: Cash flow 7,326,638$ -$ -$ -$ 7,326,638$ Special revenue programs - - 7,568,944 - 7,568,944 Capital improvements - - - 40,680,331 40,680,331 Total designated fund balance 7,326,638$ -$ 7,568,944$ 40,680,331$ 55,575,913$ Governmental funds Fund IV. LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City’s legal debt margin for 2009 and 2008 is computed as follows: 2009 2008 Estimated Taxable Market Value 5,651,872,150$ 5,575,783,700$ Debt Limit percentage 3%3% Debt Limit 169,556,165 167,273,511 Amount of debt applicable to debt limit: Total bonded debt 27,180,000 36,280,000 Less: Amount set aside for repayment of G.O. bonds (523,534) (487,586) G.O. Revenue bonds (9,185,000) (9,570,000) G.O. Improvement bonds (6,710,000) (7,480,000) Tax increment bonds (8,405,000) (15,995,000) Total net debt applicable to margin 2,356,466 2,747,414 Legal debt margin 167,199,699$ 164,526,097$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 141 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 V. OTHER INFORMATION A. Defined Benefit Pension Plan - Public Employees Retirement Association (PERA) - Statewide 1. 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 Public Employees Retirement Fund (PERF) 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 statutes, chapters 353 and 356. PERF 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, fire-fighters 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. Two methods are used to compute benefits for PERA’s Coordinated and Basic Plan members. The retiring member receives the higher of the step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 for each year of service. For all PEPFF members, and for PERF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single-life annuity is a lifetime annuity that ceases upon the death of the retiree – no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. 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. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 142 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 V. OTHER INFORMATION - CONTINUED PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained on the Internet at www.mnpera.org, by writing to PERA, 60 Empire Street, Suite #200, St. Paul, Minnesota 55103-1855 or by calling (651) 296-7460 or 1-800-652-9026. 2. 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 Minnesota statutes. PERF Basic Plan members and Coordinated Plan members were required to contribute 9.1 and 6.0 percent, respectively, of their annual covered salary in 2009. PEPFF members were required to contribute 9.4 percent of their annual covered salary in 2009. The City is required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan PERF members, 6.75 percent for Coordinated Plan PERF members and 14.1 percent for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF will increase to 7.00 percent, effective January 1, 2010. The City’s contributions to PERF and PEPFF for the years ending December 31, 2009, 2008 and 2007 are as follows: Public Employees Public Employees Years Ending Retirement Fund Police and Fire Fund 2009 810,447$ 821,953$ 2008 764,706 717,181 2007 702,489 611,282 These contribution amounts were equal to the contractually required contributions for each year as set by Minnesota statutes. B. Postemployment Benefits Other than Pensions 1. Plan Description The City of St. Louis Park administers a single-employer defined benefit healthcare plan (“the Retiree Health Plan”). The plan provides healthcare insurance for eligible retirees and their eligible dependents through the City’s group health insurance plan, which covers both active and retired members. There are 249 active participants and 29 retired participants. Benefit provisions are established through negotiations between the City and the union representing City employees. The Retiree Health Plan does not issue a publicly available financial report. 2. Funding Policy Contribution requirements are negotiated between the City and union representatives and established by Council for non-union groups. For fiscal year 2009, the City contributed $82,847 to the plan. Plan members receiving benefits contribute 100 percent of their premium costs. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 143 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 V. OTHER INFORMATION - CONTINUED 3. Annual OPEB Cost and Net OPEB Obligation The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC). The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation to the Retiree Health Plan: Annual required contribution 427,519$ Interest on net OPEB obligation 14,793 Adjustment to annual required contribution (21,387) Annual OPEB cost (expense)420,925 Contributions made (82,847) Increase in net OPEB obligation 338,078 Net OPEB obligation- beginning of year 369,828 NET OPEB obligating - end of year 707,906$ The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2009 and the preceding fiscal year are as follows: Year Annual Net OPEB Ending OPEB Cost Obligation 12/31/09 420,925$ (68.2) %707,906$ 12/31/08 559,946 34.0 369,828 Trend Information Percentage Annual OPEB Contributed Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 144 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 V. OTHER INFORMATION - CONTINUED 4. Funded Status and Funding Progress As of January 1, 2009, the estimated actuarial accrued liability for benefits was $3,260,061, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $16,906,064, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 19.3 percent. The projection of future benefit payments for an ongoing plan involves 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 healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions 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 the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 5. Methods and Assumptions 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 methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2009 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 4.0 percent investment rate of return, which is a blended rate of the expected long-term investment returns on plan assets and on the employer’s own investments. The initial healthcare cost trend rate used was 9.5 percent, reduced by decrements to an ultimate rate of 5 percent after ten years. The unfunded actuarial accrued liability (UAAL) is being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period at December 31, 2009 was thirty years. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 145 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 V. OTHER INFORMATION - CONTINUED C. Contingencies 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. Most current costs associated with remediation are estimated at no more than $5,000,000. With Park Nicollet responsible for the first $1,250,000, the EDA’s liability is estimated to be $3,750,000. The development agreement stipulates EDA reimbursements to begin in 1998 and continue through 2011. Federal and State Funds The City receives financial assistance from federal and state government 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 are 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, 2009. 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 increment could become a liability of an 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. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 146 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 V. OTHER INFORMATION - CONTINUED 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. The City of St. Louis Park will receive monthly principal and interest payment 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, 2009, the outstanding amount on the bonds is $3,870,000. D. 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. Property and casualty insurance: Property and casualty insurance 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 insurance 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. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 147 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 V. OTHER INFORMATION - CONTINUED Settled claims resulting from these risks have not exceeded insurance coverage in any of the past three years. 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 League of Minnesota Cities Insurance Trust (LMCIT) for workers compensation. The City established the Employee Benefits fund to account for and finance its uninsured risk of loss related to injuries to employees. Under this program, the Employee Benefits 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. The claims liability of $94,090 reported in the fund at December 31, 2009 is based on the requirements of Governmental Accounting Standards Board Statement Number 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements and the amount of the loss can be reasonably estimated. Changes in the claim liability amounts were as follows: Beginning Claims and End of Year Changes in Claims of Year Year Liability Estimates Payments Liability 2009 131,749$ 30,000$ 67,659$ 94,090$ 2008 189,785 35,000 93,036 131,749 2007 300,000 45,000 155,215 189,785 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 148 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 V. OTHER INFORMATION - CONTINUED E. Unallotment of Market Value Homestead Credit The City receives a portion of its annual General fund revenue from the State of Minnesota from the Market Value Homestead Credit (MVHC) program. The amount received in 2009 was $102,402. The State of Minnesota has proposed unallotments calculated as a percent of the total pay 2009 revenue base. For cities, the revenue base is equal to the certified levy plus certified local government aid (LGA) plus taconite aid. The proposed unallotments for cities has been limited to $22 per capita in pay 2009 and $55 per capita in pay 2010. The proposed unallotment percentages for 2010 are equal to 7.644 percent of the 2009 revenue base for cities. F. 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, 2009, there were 13 Revenue Bonds issued. The aggregate principal amount payable as of December 31, 2009 is $488,170,000. G. Subsequent Event The City awarded the sale of $3,105,000 Taxable General Obligation Refunding Housing Improvement bonds, series 2010A, dated May 7, 2010. The bonds were issued for construction improvements to Sunset Ridge Housing. The City also awarded the sale of $5,935,000 General Obligation bonds, series 2010B, dated May 7, 2010. The bonds were issued for refunding the 2003A General Obligation bonds, refunding the 2001B Storm Sewer Revenue bonds, and for the construction of new utility projects. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 149 REQUIRED SUPPLEMENTARY INFORMATION Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 150 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 151 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2009 Schedule of Funding Progress for the Postemployment Benefit Plan Unfunded Actuarial Actuarial Actuarial Actuarial Accrued Valuation Value of Accrued Liability Covered Date Assets Liability (UAAL)Payroll 01/01/09 -$ 3,260,061$ 3,260,061$ - %16,906,064$ 19.3 % 01/01/08 - 5,835,634 5,835,634 - 16,387,992 35.6 Required Supplementary Information Funded Ratio UAAL as a Percentage of Covered Payroll Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 152 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 153 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 154 CITY OF ST. LOUIS PARK, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2009 Special Capital Revenue Projects Total ASSETS Cash and temporary investments 6,835,701$ 3,580,457$ 10,416,158$ Receivables Accounts 148,853 227,719 376,572 Accrued interest 36,190 17,449 53,639 Special assessments Delinquent 9,087 - 9,087 Deferred 166,680 683 167,363 Due from other governments 151,736 14,900 166,636 TOTAL ASSETS 7,348,247$ 3,841,208$ 11,189,455$ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable 60,103$ 152,350$ 212,453$ Contracts payable - 151,065 151,065 Accrued salaries payable 11,714 - 11,714 Due to other funds 151,488 - 151,488 Due to other governments 32,098 7,458 39,556 Deferred revenue 166,680 683 167,363 TOTAL LIABILITIES 422,083 311,556 733,639 FUND BALANCES Unreserved Designated for special revenue programs 6,931,862 - 6,931,862 Designated for capital improvements - 3,529,902 3,529,902 Undesignated (5,698) (250) (5,948) TOTAL FUND BALANCES 6,926,164 3,529,652 10,455,816 TOTAL LIABILITIES AND FUND BALANCES 7,348,247$ 3,841,208$ 11,189,455$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 155 CITY OF ST. LOUIS PARK, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2009 Special Capital Revenue Projects Total REVENUES Taxes Property -$ 1,110,003$ 1,110,003$ Franchise 581,928 921,147 1,503,075 Intergovernmental State - 14,900 14,900 Other 235,662 44,702 280,364 Charges for services 57,045 1,291 58,336 Special assessments 202,495 868 203,363 Interest on investments 153,793 90,078 243,871 Miscellaneous 2,756 273,855 276,611 TOTAL REVENUES 1,233,679 2,456,844 3,690,523 EXPENDITURES Current Public safety 12,847 21,949 34,796 Public works - 314,706 314,706 Public information 445,146 - 445,146 Culture and recreation - 191,535 191,535 Housing maintenance 128,099 - 128,099 Social and economic development 176,151 - 176,151 Capital outlay Public safety - 1,294 1,294 Public works - 1,182,428 1,182,428 Public information 295,924 - 295,924 Culture and recreation - 1,249,926 1,249,926 TOTAL EXPENDITURES 1,058,167 2,961,838 4,020,005 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 175,512 (504,994) (329,482) OTHER FINANCING SOURCES (USES) Transfers in - 130,669 130,669 Transfers out (569,669) (472,810) (1,042,479) TOTAL OTHER FINANCING SOURCES (USES)(569,669) (342,141) (911,810) NET CHANGE IN FUND BALANCES (394,157) (847,135) (1,241,292) FUND BALANCES, JANUARY 1 7,320,321 4,376,787 11,697,108 FUND BALANCES, DECEMBER 31 6,926,164$ 3,529,652$ 10,455,816$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 156 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 157 CITY OF ST. LOUIS PARK, MINNESOTA NONMAJOR SPECIAL REVENUE FUNDS Cable Television Fund - to account for revenues received from franchise fees and expenditures related to regulation of the privately owned cable television company. Community Development Fund - to account for funds received under Title I of the Housing and Community Development Act of 1974. Special Service District Funds - 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. Police & Fire Pensions Fund - accounts for the funds received by the Police and Fire department for pension refunds. These funds must be used for specific police and fire purposes. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 158 CITY OF ST. LOUIS PARK, MINNESOTA NONMAJOR SPECIAL REVENUE GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2009 2600 2650 Special Cable Community Service Television Development Districts ASSETS Cash and temporary investments 1,235,429$ 32,052$ 355,066$ Receivables Accounts 142,632 - 6,221 Accrued interest 7,060 - 1,552 Special assessments Delinquent - - 9,087 Deferred - - 166,680 Due from other governments - 151,736 - TOTAL ASSETS 1,385,121$ 183,788$ 538,606$ LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable 20,355$ 5,946$ 33,802$ Accrued salaries payable 11,714 - - Due to other funds - 151,488 - Due to other governments 46 32,052 - Deferred revenue - - 166,680 TOTAL LIABILITIES 32,115 189,486 200,482 FUND BALANCES (DEFICITS) Unreserved Designated for special revenue programs 1,353,006 - 338,124 Undesignated - (5,698) - TOTAL FUND BALANCES (DEFICITS)1,353,006 (5,698) 338,124 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)1,385,121$ 183,788$ 538,606$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 159 2900 Police & Fire Pensions Total 5,213,154$ 6,835,701$ - 148,853 27,578 36,190 - 9,087 - 166,680 - 151,736 5,240,732$ 7,348,247$ -$ 60,103$ - 11,714 - 151,488 - 32,098 - 166,680 - 422,083 5,240,732 6,931,862 - (5,698) 5,240,732 6,926,164 5,240,732$ 7,348,247$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 160 CITY OF ST. LOUIS PARK, MINNESOTA NONMAJOR SPECIAL REVENUE GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) FOR THE YEAR ENDED DECEMBER 31, 2009 2600 2650 Special Cable Community Service Television Development Districts REVENUES Franchise taxes 581,928$ -$ -$ Intergovernmental Other - 235,662 - Charges for services - - 57,045 Special assessments - - 202,495 Interest on investments 33,172 404 6,016 Miscellaneous 1,759 - 997 TOTAL REVENUES 616,859 236,066 266,553 EXPENDITURES Current Public safety Supplies - - - Other services and charges - - - Public information Personal services 336,380 - - Supplies 23,133 - - Other services and charges 85,633 - - Housing maintenance Personal services - 13,050 - Other services and charges - 115,049 - Social and economic development Supplies - - 21,410 Other services and charges - - 154,741 Capital outlay Public information 295,924 - - TOTAL EXPENDITURES 741,070 128,099 176,151 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (124,211) 107,967 90,402 OTHER FINANCING USES Transfers out (155,000) (107,097) - NET CHANGE IN FUND BALANCES (279,211) 870 90,402 FUND BALANCES (DEFICITS), JANUARY 1 1,632,217 (6,568) 247,722 FUND BALANCES (DEFICITS), DECEMBER 31 1,353,006$ (5,698)$ 338,124$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 161 2900 Police & Fire Pensions Total -$ 581,928$ - 235,662 - 57,045 - 202,495 114,201 153,793 - 2,756 114,201 1,233,679 3,933 3,933 8,914 8,914 - 336,380 - 23,133 - 85,633 - 13,050 - 115,049 - 21,410 - 154,741 - 295,924 12,847 1,058,167 101,354 175,512 (307,572) (569,669) (206,218) (394,157) 5,446,950 7,320,321 5,240,732$ 6,926,164$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 162 CITY OF ST. LOUIS PARK, MINNESOTA CABLE TELEVISION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Actual Amounts For The Year Ended December 31, 2008) 2008 Variance with Final Budget - Actual Positive Actual Original Final Amounts (Negative)Amounts REVENUES Franchise taxes 500,000$ 500,000$ 581,928$ 81,928$ 585,800$ Interest on investments 80,000 80,000 33,172 (46,828) 53,890 Miscellaneous - - 1,759 1,759 2,363 TOTAL REVENUES 580,000 580,000 616,859 36,859 642,053 EXPENDITURES Public information Current Personal services 336,000 336,000 336,380 (380) 323,364 Supplies 16,000 16,000 23,133 (7,133) 6,738 Other services and charges 151,500 151,500 85,633 65,867 85,507 Capital outlay - - 295,924 (295,924) - TOTAL EXPENDITURES 503,500 503,500 741,070 (237,570) 415,609 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 76,500 76,500 (124,211) (200,711) 226,444 OTHER FINANCING USES Transfers out (155,063) (155,063) (155,000) 63 (155,063) NET CHANGE IN FUND BALANCES (78,563) (78,563) (279,211) (200,648) 71,381 FUND BALANCES, JANUARY 1 1,632,217 1,632,217 1,632,217 - 1,560,836 FUND BALANCES, DECEMBER 31 1,553,654$ 1,553,654$ 1,353,006$ (200,648)$ 1,632,217$ Budgeted Amounts 2009 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 163 CITY OF ST. LOUIS PARK, MINNESOTA NONMAJOR CAPITAL PROJECT FUNDS Municipal Building Fund - To account for the financing of land acquisition and construction of municipal buildings and facilities. Revenues are provided by transfers from the General Fund, or by the sale of general obligation bonds to finance major construction projects. Fire Station Bonds - To account for the financing of land acquisition and construction of a two new fire stations. Revenues will be provided from other City funds and property tax levies. Park Improvement Fund - To account for the financing of land acquisition and development for park purposes. Revenues are provided by St. Louis Park School District contribution, interest earnings, rent, sale of property, and a property tax levy. Pavement Management Fund - 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. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 164 CITY OF ST. LOUIS PARK, MINNESOTA NONMAJOR CAPITAL PROJECTS GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2009 4020 4040 4065 4500 Municipal Fire Station Park Pavement Building Bonds Improvement Management ASSETS Cash and temporary investments -$ 49$ 2,150,416$ 1,429,992$ Receivables Accounts - - - 227,719 Accrued interest - - 10,421 7,028 Special assessments Deferred - - 153 530 Due from other governments - - 14,900 - TOTAL ASSETS -$ 49$ 2,175,890$ 1,665,269$ LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable -$ 299$ 152,051$ -$ Contracts payable - - 28,518 122,547 Due to other governments - - 7,394 64 Deferred revenue - - 153 530 TOTAL LIABILITIES - 299 188,116 123,141 FUND BALANCES (DEFICITS) Unreserved Designated for capital improvements - - 1,987,774 1,542,128 Undesignated - (250) - - TOTAL FUND BALANCES (DEFICITS)- (250) 1,987,774 1,542,128 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)-$ 49$ 2,175,890$ 1,665,269$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 165 Total 3,580,457$ 227,719 17,449 683 14,900 3,841,208$ 152,350$ 151,065 7,458 683 311,556 3,529,902 (250) 3,529,652 3,841,208$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 166 CITY OF ST. LOUIS PARK, MINNESOTA NONMAJOR CAPITAL PROJECTS GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) FOR THE YEAR ENDED DECEMBER 31, 2009 4020 4040 4065 4500 Municipal Fire Station Park Pavement Building Bonds Improvement Management REVENUES Taxes Property -$ -$ 695,000$ 415,003$ Franchise - - - 921,147 Intergovernmental State - - 14,900 - Other - - 44,702 - Charges for services - - - 1,291 Special assessments - - - 868 Interest on investments - 48 46,729 43,301 Miscellaneous - - 273,855 - TOTAL REVENUES - 48 1,075,186 1,381,610 EXPENDITURES Current Public safety - 21,949 - - Public works - - - 314,706 Culture and recreation - - 191,535 - Capital outlay Public safety - 1,294 - - Public works - - - 1,182,428 Culture and recreation - - 1,249,926 - TOTAL EXPENDITURES - 23,243 1,441,461 1,497,134 DEFICIENCY OF REVENUES UNDER EXPENDITURES - (23,195) (366,275) (115,524) OTHER FINANCING SOURCES (USES) Transfers in - 23,572 107,097 - Transfers out (472,810) - - - TOTAL OTHER FINANCING SOURCES (USES)(472,810) 23,572 107,097 - NET CHANGE IN FUND BALANCES (472,810) 377 (259,178) (115,524) FUND BALANCES (DEFICITS), JANUARY 1 472,810 (627) 2,246,952 1,657,652 FUND BALANCES (DEFICITS), DECEMBER 31 -$ (250)$ 1,987,774$ 1,542,128$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 167 Total 1,110,003$ 921,147 14,900 44,702 1,291 868 90,078 273,855 2,456,844 21,949 314,706 191,535 1,294 1,182,428 1,249,926 2,961,838 (504,994) 130,669 (472,810) (342,141) (847,135) 4,376,787 3,529,652$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 168 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 169 OTHER REPORTS Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 170 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 171 CITY OF ST. LOUIS PARK, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET - CONTINUED ON THE FOLLOWING PAGES DECEMBER 31, 2009 3880 3890 3870 3860 2008B 2005B General 2005A General Obligation General Obligation Tax Tax Increment Obligation Increment Hoigaard's Bond Bond Refunding ASSETS Cash and temporary investments -$ 346,781$ 521,638$ -$ Accrued interest - 1,811 1,896 - Loan receivable - current - - - - Loan receivable - noncurrent - - - - TOTAL ASSETS -$ 348,592$ 523,534$ -$ LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable -$ -$ -$ -$ Due to other funds 52,838 - - - Deferred revenue - - - - TOTAL LIABILITIES 52,838 - - - FUND BALANCES (DEFICITS) Reserved for debt service (52,838) 348,592 523,534 - TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)-$ 348,592$ 523,534$ -$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 172 CITY OF ST. LOUIS PARK, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET - CONTINUED DECEMBER 31, 2009 3850 3450 3840 3830 2004 2002A 2001A General 2003 General General Obligation Tax General Obligation Tax Obligation Tax Increment Obligation Increment Increment Refunding Bond Refunding Refunding ASSETS Cash and temporary investments 7,706$ 506,693$ -$ -$ Accrued interest - 1,783 - - Loan receivable - current - - - - Loan receivable - noncurrent - - - - TOTAL ASSETS 7,706$ 508,476$ -$ -$ LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable -$ -$ -$ -$ Due to other funds - - - - Deferred revenue - - - - TOTAL LIABILITIES - - - - FUND BALANCES (DEFICITS) Reserved for debt service 7,706 508,476 - - TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)7,706$ 508,476$ -$ -$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 173 3835 3600 3610 3400 2009A General 2000 2000 1999 Obligation Tax General General General Increment Obligation Obligation Obligation Refunding Bond Reserve Bond Bond Total 5,147$ 325,000$ 185,726$ 348,461$ 2,247,152$ - - - 1,266 6,756 - - 100,000 - 100,000 - - 3,770,000 - 3,770,000 5,147$ 325,000$ 4,055,726$ 349,727$ 6,123,908$ -$ -$ -$ 3,000$ 3,000$ - - - - 52,838 - - 3,870,000 - 3,870,000 - - 3,870,000 3,000 3,925,838 5,147 325,000 185,726 346,727 2,198,070 5,147$ 325,000$ 4,055,726$ 349,727$ 6,123,908$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 174 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 175 CITY OF ST. LOUIS PARK, MINNESOTA DEBT SERVICE FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - CONTINUED ON THE FOLLOWING PAGES FOR THE YEAR ENDED DECEMBER 31, 2009 3880 3890 3870 3860 2008B 2005B General 2005A General Obligation General Obligation Tax Tax Increment Obligation Increment Hoigaard's Bond Bond Refunding REVENUES Property taxes -$ -$ 496,700$ -$ Interest on investments 216 11,983 3,551 - Miscellaneous - - - - TOTAL REVENUES 216 11,983 500,251 - EXPENDITURES Debt service Principal 39,000 - 355,000 825,000 Interest 308,966 143,707 109,303 20,650 TOTAL EXPENDITURES 347,966 143,707 464,303 845,650 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (347,750) (131,724) 35,948 (845,650) OTHER FINANCING SOURCES (USES) Transfers in - - - - Issuance of debt - - - - Premium on bonds - - - - Principal payments to refunded bond escrow agent - - - - Costs paid to refunded bond escrow agent - - - - Transfers out - - - (204,235) TOTAL OTHER FINANCING SOURCES (USES)- - - (204,235) NET CHANGE IN FUND BALANCES (347,750) (131,724) 35,948 (1,049,885) FUND BALANCES, JANUARY 1 294,912 480,316 487,586 1,049,885 FUND BALANCES (DEFICITS), DECEMBER 31 (52,838)$ 348,592$ 523,534$ -$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 176 CITY OF ST. LOUIS PARK, MINNESOTA DEBT SERVICE FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2009 3850 3450 3840 3830 2004 2002A 2001A General 2003 General General Obligation Tax General Obligation Tax Obligation Tax Increment Obligation Increment Increment Refunding Bond Refunding Refunding REVENUES Property taxes -$ 517,400$ -$ -$ Interest on investments 14 2,703 600 1,628 Miscellaneous - - - - TOTAL REVENUES 14 520,103 600 1,628 EXPENDITURES Debt service Principal 510,000 400,000 1,260,000 450,000 Interest 186,230 86,482 50,941 146,879 TOTAL EXPENDITURES 696,230 486,482 1,310,941 596,879 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (696,216) 33,621 (1,310,341) (595,251) OTHER FINANCING SOURCES (USES) Transfers in 3,961,339 - 1,209,543 - Issuance of debt - - - 2,000,000 Premium on bonds - - - 10,202 Principal payments to refunded bond escrow agent (4,110,000) - - (1,935,000) Costs paid to refunded bond escrow agent (199,425) - - - Transfers out - - (1,221) (138,503) TOTAL OTHER FINANCING SOURCES (USES)(348,086) - 1,208,322 (63,301) NET CHANGE IN FUND BALANCES (1,044,302) 33,621 (102,019) (658,552) FUND BALANCES, JANUARY 1 1,052,008 474,855 102,019 658,552 FUND BALANCES (DEFICITS), DECEMBER 31 7,706$ 508,476$ -$ -$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 177 3835 3600 3610 3400 2009A General 2000 2000 1999 Obligation Tax General General General Increment Obligation Obligation Obligation Refunding Bond Reserve Bond Bond Total -$ -$ -$ 332,900$ 1,347,000$ 12 829 469 2,064 24,069 - - 318,134 - 318,134 12 829 318,603 334,964 1,689,203 500,000 - 95,000 275,000 4,709,000 6,181 - 227,114 36,024 1,322,477 506,181 - 322,114 311,024 6,031,477 (506,169) 829 (3,511) 23,940 (4,342,274) 511,316 - 829 - 5,683,027 - - - - 2,000,000 - - - - 10,202 - - - - (6,045,000) - - - - (199,425) - (829) - - (344,788) 511,316 (829) 829 - 1,104,016 5,147 - (2,682) 23,940 (3,238,258) - 325,000 188,408 322,787 5,436,328 5,147$ 325,000$ 185,726$ 346,727$ 2,198,070$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 178 CITY OF ST. LOUIS PARK, MINNESOTA REDEVELOPMENT DISTRICT GOVERNMENTAL FUNDS COMBINING BALANCE SHEET - CONTINUED ON THE FOLLOWING PAGES DECEMBER 31, 2009 4780 4798 4800 Duke West HRA Oak Park End TIF Levy Village ASSETS Cash and temporary investments -$ 5,007,498$ -$ Receivables Unremitted tax collections - 7,894 - Delinquent taxes - 19,802 - Accounts - - - Accrued interest 3,165 24,610 - Due from other funds - - - TOTAL ASSETS 3,165$ 5,059,804$ -$ LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable 1,901$ 3,000$ -$ Deposits payable - - - Due to other funds 379,088 - - Due to other governments 364 - - Deferred revenue - 19,802 - TOTAL LIABILITIES 381,353 22,802 - FUND BALANCES (DEFICITS) Unreserved Designated for redevelopment (378,188) 5,037,002 - TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)3,165$ 5,059,804$ -$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 179 4805 4855 4865 4870 4875 4880 CSM Excelsior Trunk Victoria Park Center TIF Boulevard Highway 7 HSTI Ponds Housing District -$ 205,495$ 91,843$ 87,702$ 898,426$ 326,762$ - 12,182 5,209 4,028 - 2,260 - - - - - - - 3,568 - - - - - 1,110 324 648 4,511 1,041 - - - - - - -$ 222,355$ 97,376$ 92,378$ 902,937$ 330,063$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - 131,100 - - 68,066 - 950 477 926 - - - - - - - 68,066 - 950 131,577 926 - 154,289 97,376 91,428 771,360 329,137 -$ 222,355$ 97,376$ 92,378$ 902,937$ 330,063$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 180 CITY OF ST. LOUIS PARK, MINNESOTA REDEVELOPMENT DISTRICT GOVERNMENTAL FUNDS COMBINING BALANCE SHEET - CONTINUED DECEMBER 31, 2009 4900 4920 4930 Mill City Park Commons Edgewood TIF TIF TIF District District District ASSETS Cash and temporary investments 206,822$ 407,263$ 35,815$ Receivables Unremitted tax collections - 15,938 - Delinquent taxes - - - Accounts - - - Accrued interest 702 - 73 Due from other funds - - - TOTAL ASSETS 207,524$ 423,201$ 35,888$ LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable -$ 2,000$ -$ Deposits payable - - - Due to other funds - - - Due to other governments 575 3,636 419 Deferred revenue - - - TOTAL LIABILITIES 575 5,636 419 FUND BALANCES (DEFICITS) Unreserved Designated for redevelopment 206,949 417,565 35,469 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)207,524$ 423,201$ 35,888$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 181 4940 4950 4965 4970 4980 Wolfe Lake Highway 7 Elmwood TIF Aquila Business Village District Commons Hoigaard's Center Total 511,917$ 75,898$ 100,313$ 11,329$ 10,751$ 7,977,834$ 42,177 - 158 - - 89,846 - - - - - 19,802 - - - - - 3,568 951 186 159 61 - 37,541 52,838 - - - - 52,838 607,883$ 76,084$ 100,630$ 11,390$ 10,751$ 8,181,429$ 4,018$ -$ -$ 380$ -$ 11,299$ - - - 812,348 - 812,348 - - - 350,376 - 860,564 2,074 478 775 - 508 79,248 - - - - - 19,802 6,092 478 775 1,163,104 508 1,783,261 601,791 75,606 99,855 (1,151,714) 10,243 6,398,168 607,883$ 76,084$ 100,630$ 11,390$ 10,751$ 8,181,429$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 182 CITY OF ST. LOUIS PARK, MINNESOTA REDEVELOPMENT DISTRICT GOVERNMENTAL FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - CONTINUED ON THE FOLLOWING PAGES FOR THE YEAR ENDED DECEMBER 31, 2009 4780 4798 4800 Duke West HRA Oak Park End TIF Levy Village REVENUES Property taxes -$ -$ 7,135$ Tax increments - 989,407 210,969 Intergovernmental State - 30,856 - Interest on investments 27,603 99,690 - TOTAL REVENUES 27,603 1,119,953 218,104 EXPENDITURES Current Social and economic development 839 53,761 - Capital outlay Social and economic development 24,839 - - TOTAL EXPENDITURES 25,678 53,761 - EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,925 1,066,192 218,104 OTHER FINANCING SOURCES (USES) Transfers in - - 22,346 Transfers out (1,356,317) - (539,754) TOTAL OTHER FINANCING SOURCES (USES)(1,356,317) - (517,408) NET CHANGES IN FUND BALANCES (1,354,392) 1,066,192 (299,304) FUND BALANCES (DEFICITS), JANUARY 1 976,204 3,970,810 299,304 FUND BALANCES (DEFICITS), DECEMBER 31 (378,188)$ 5,037,002$ -$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 183 4805 4855 4865 4870 4875 4880 CSM Excelsior Trunk Victoria Park Center TIF Boulevard Highway 7 HSTI Ponds Housing District -$ -$ -$ -$ -$ -$ 1,215,876 1,065,572 93,074 399,553 124,220 381,354 - - - 4,560 - 7,983 - 62,621 927 1,278 18,689 2,990 1,215,876 1,128,193 94,001 405,391 142,909 392,327 1,467,756 9,625 88,284 154,195 2,140 351,361 - - - - - - 1,467,756 9,625 88,284 154,195 2,140 351,361 (251,880) 1,118,568 5,717 251,196 140,769 40,966 103,819 82,270 - - - - (3,670,018) (1,336,902) - - - - (3,566,199) (1,254,632) - - - - (3,818,079) (136,064) 5,717 251,196 140,769 40,966 3,818,079 290,353 91,659 (159,768) 630,591 288,171 -$ 154,289$ 97,376$ 91,428$ 771,360$ 329,137$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 184 CITY OF ST. LOUIS PARK, MINNESOTA REDEVELOPMENT DISTRICT GOVERNMENTAL FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2009 4900 4920 4930 Mill City Park Commons Edgewood TIF TIF TIF District District District REVENUES Property taxes -$ -$ -$ Tax increments 222,462 1,673,121 66,609 Intergovernmental State - 22,172 - Interest on investments 2,202 - 75 TOTAL REVENUES 224,664 1,695,293 66,684 EXPENDITURES Current Social and economic development 208,362 1,807,589 63,511 Capital outlay Social and economic development - - - TOTAL EXPENDITURES 208,362 1,807,589 63,511 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 16,302 (112,296) 3,173 OTHER FINANCING SOURCES (USES) Transfers in - - - Transfers out - - - TOTAL OTHER FINANCING SOURCES (USES)- - - NET CHANGES IN FUND BALANCES 16,302 (112,296) 3,173 FUND BALANCES (DEFICITS), JANUARY 1 190,647 529,861 32,296 FUND BALANCES (DEFICITS), DECEMBER 31 206,949$ 417,565$ 35,469$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 185 4940 4950 4965 4970 4980 Wolfe Lake Highway 7 Elmwood TIF Aquila Business Village District Commons Hoigaard's Center Total -$ -$ -$ -$ -$ 7,135$ 938,562 123,027 189,247 - 153,151 7,846,204 20,978 - 11,561 48,432 - 146,542 1,279 356 141 82 - 217,933 960,819 123,383 200,949 48,514 153,151 8,217,814 460,989 118,281 135,455 2,800 167,929 5,092,877 - - - - - 24,839 460,989 118,281 135,455 2,800 167,929 5,117,716 499,830 5,102 65,494 45,714 (14,778) 3,100,098 - - - - - 208,435 - - - - - (6,902,991) - - - - - (6,694,556) 499,830 5,102 65,494 45,714 (14,778) (3,594,458) 101,961 70,504 34,361 (1,197,428) 25,021 9,992,626 601,791$ 75,606$ 99,855$ (1,151,714)$ 10,243$ 6,398,168$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 186 CITY OF ST. LOUIS PARK, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS (LIABILITIES) DECEMBER 31, 2009 AND 2008 2009 2008 2009 2008 ASSETS CURRENT ASSETS Cash and temporary investments -$ 1,104$ 557,833$ 824,894$ Receivables Accounts - 14,299 - - Accrued interest 6,766 1,695 2,985 5,132 Deposits 31,000 31,000 - - Due from other governments - - 93,908 - Prepaid items 245,935 258,625 80,537 70,996 TOTAL CURRENT ASSETS 283,701 306,723 735,263 901,022 NONCURRENT ASSETS Capital assets, at cost Machinery and equipment - - - - Furniture and equipment - - - - Fleet - - - - Construction in progress - - - - Total capital assets, at cost - - - - Less accumulated depreciation - - - - NET NONCURRENT ASSETS - - - - TOTAL ASSETS 283,701 306,723 735,263 901,022 LIABILITIES CURRENT LIABILITIES Accounts payable 14,329 22,350 3,970 77,743 Contracts payable - - - - Accrued flex spending 34,362 34,929 - - Accrued salaries payable 3,305 3,186 - - Due to other funds 197,250 309,917 - - Due to other governments 26,282 24,099 - - Compensated absences payable 2,258,671 2,210,038 - - TOTAL CURRENT LIABILITIES 2,534,199 2,604,519 3,970 77,743 NONCURRENT LIABILITIES Compensated absences payable 968,002 947,159 - - Other postemployment benefits payable 673,620 351,686 - - TOTAL NONCURRENT LIABILITIES 1,641,622 1,298,845 - - TOTAL LIABILITIES 4,175,821 3,903,364 3,970 77,743 NET ASSETS (LIABILITIES) Invested in capital assets - - - - Unrestricted (3,892,120) (3,596,641) 731,293 823,279 TOTAL NET ASSETS (LIABILITIES)(3,892,120)$ (3,596,641)$ 731,293$ 823,279$ Employee Flex Spending Uninsured Loss Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 187 2009 2008 2009 2008 2009 2008 -$ 2,132,305$ 2,949,287$ 497,126$ 3,507,120$ 3,455,429$ - - - - - 14,299 - 13,219 12,093 2,635 21,844 22,681 - - - - 31,000 31,000 - - - - 93,908 - - - - 4,026 326,472 333,647 - 2,145,524 2,961,380 503,787 3,980,344 3,857,056 - 3,347,058 3,337,956 - 3,337,956 3,347,058 - - 1,641,829 1,100,149 1,641,829 1,100,149 - 6,371,985 6,335,322 - 6,335,322 6,371,985 - - 5,422,433 37,029 5,422,433 37,029 - 9,719,043 16,737,540 1,137,178 16,737,540 10,856,221 - (4,360,897) (5,173,744) (459,926) (5,173,744) (4,820,823) - 5,358,146 11,563,796 677,252 11,563,796 6,035,398 - 7,503,670 14,525,176 1,181,039 15,544,140 9,892,454 - 39,468 202,524 20,346 220,823 159,907 - - 829,630 - 829,630 - - - - - 34,362 34,929 - - - - 3,305 3,186 - - - - 197,250 309,917 - 506 1,179 221 27,461 24,826 - - - - 2,258,671 2,210,038 - 39,974 1,033,333 20,567 3,571,502 2,742,803 - - - - 968,002 947,159 - - - - 673,620 351,686 - - - - 1,641,622 1,298,845 - 39,974 1,033,333 20,567 5,213,124 4,041,648 - 5,358,146 11,563,796 677,252 11,563,796 6,035,398 - 2,105,550 1,928,047 483,220 (1,232,780) (184,592) -$ 7,463,696$ 13,491,843$ 1,160,472$ 10,331,016$ 5,850,806$ Capital Replacement TotalsEquipment Replacement Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 188 CITY OF ST. LOUIS PARK, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS (LIABILITIES) FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008 2009 2008 2009 2008 OPERATING REVENUES Charges for services -$ -$ -$ -$ Other 41,652 53,055 - - TOTAL OPERATING REVENUES 41,652 53,055 - - OPERATING EXPENSES Personal services 569,958 692,767 13,660 13,237 Supplies - - - - Professional services 17,180 12,291 - - Insurance - - 951 660 Depreciation - - - - Other 78,983 81,022 175,651 110,381 TOTAL OPERATING EXPENSES 666,121 786,080 190,262 124,278 OPERATING LOSS (624,469) (733,025) (190,262) (124,278) NONOPERATING REVENUES Interest on investments 28,955 17,567 15,224 30,507 Intergovernmental - - - - Miscellaneous revenues 35 819 97,895 34,952 Net gain on disposal of asset - - - - TOTAL NONOPERATING REVENUE 28,990 18,386 113,119 65,459 INCOME (LOSS) BEFORE TRANSFERS (595,479) (714,639) (77,143) (58,819) TRANSFERS IN 300,000 - - - TRANSFERS OUT - - (14,843) (22,131) CHANGE IN NET ASSETS (295,479) (714,639) (91,986) (80,950) NET ASSETS (LIABILITIES), JANUARY 1 (3,596,641) (2,882,002) 823,279 904,229 NET ASSETS (LIABILITIES), DECEMBER 31 (3,892,120)$ (3,596,641)$ 731,293$ 823,279$ Employee Flex Spending Uninsured Loss Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 189 2009 2008 2009 2008 2009 2008 -$ 616,732$ 626,983$ -$ 626,983$ 616,732$ - - 6,089 6,089 47,741 59,144 - 616,732 633,072 6,089 674,724 675,876 - - - - 583,618 706,004 - 60,246 181,423 209,596 181,423 269,842 - - 152,922 27 170,102 12,318 - - - - 951 660 - 757,794 984,996 129,197 984,996 886,991 - 308 143,968 1,363 398,602 193,074 - 818,348 1,463,309 340,183 2,319,692 2,068,889 - (201,616) (830,237) (334,094) (1,644,968) (1,393,013) - 79,002 49,827 15,928 94,006 143,004 - 102,463 - - - 102,463 - - - 1,000 97,930 36,771 - 111,982 91,148 - 91,148 111,982 - 293,447 140,975 16,928 283,084 394,220 - 91,831 (689,262) (317,166) (1,361,884) (998,793) - - 13,020,633 82,060 13,320,633 82,060 (7,463,696) - - - (7,478,539) (22,131) (7,463,696) 91,831 12,331,371 (235,106) 4,480,210 (938,864) 7,463,696 7,371,865 1,160,472 1,395,578 5,850,806 6,789,670 -$ 7,463,696$ 13,491,843$ 1,160,472$ 10,331,016$ 5,850,806$ Capital Replacement TotalsEquipment Replacement Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 190 CITY OF ST. LOUIS PARK, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS - CONTINUED ON THE FOLLOWING PAGES FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008 2009 2008 2009 2008 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services provided 55,951$ 54,517$ -$ -$ Other receipts 35 819 97,895 34,952 Payments to suppliers (91,494) (242,806) (259,916) (28,976) Payments to employees (178,995) (139,892) (13,660) (13,237) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (214,503) (327,362) (175,681) (7,261) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 300,000 - - - Transfers out - - (14,843) (22,131) Payments (borrowing) on interfund balances (112,667) 218,309 - - Intergovernmental receipts 2,183 12,800 Intergovernmental payments - (93,908) (165) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 189,516 231,109 (108,751) (22,296) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets - - - - Proceeds from sale of assets - - - - NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES - - - - CASH FLOWS FROM INVESTING ACTIVITIES Interest received from investments 23,883 15,871 17,371 34,232 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,104) (80,382) (267,061) 4,675 CASH AND CASH EQUIVALENTS, JANUARY 1 1,104 81,486 824,894 820,219 CASH AND CASH EQUIVALENTS, DECEMBER 31 -$ 1,104$ 557,833$ 824,894$ Employee Flex Spending Uninsured Loss Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 191 2009 2008 2009 2008 2009 2008 -$ 616,732$ 633,072$ 6,089$ 689,023$ 677,338$ - - - 1,000 97,930 36,771 (39,468) (27,843) (292,109) (198,012) (682,987) (497,637) - - - - (192,655) (153,129) (39,468) 588,889 340,963 (190,923) (88,689) 63,343 - - 7,662,487 82,060 7,962,487 82,060 (2,105,550) - - - (2,120,393) (22,131) - - - - (112,667) 218,309 102,969 958 221 3,141 115,990 (506) - - - (94,414) (165) (2,106,056) 102,969 7,663,445 82,281 5,638,154 394,063 - (1,585,254) (5,683,764) (57,517) (5,683,764) (1,642,771) - 111,982 91,148 - 91,148 111,982 - (1,473,272) (5,592,616) (57,517) (5,592,616) (1,530,789) 13,219 93,402 40,369 21,031 94,842 164,536 (2,132,305) (688,012) 2,452,161 (145,128) 51,691 (908,847) 2,132,305 2,820,317 497,126 642,254 3,455,429 4,364,276 -$ 2,132,305$ 2,949,287$ 497,126$ 3,507,120$ 3,455,429$ Capital Replacement TotalsEquipment Replacement Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 192 CITY OF ST. LOUIS PARK, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS - CONTINUED FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008 2009 2008 2009 2008 RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating loss (624,469)$ (733,025)$ (190,262)$ (124,278)$ Adjustments to reconcile operating loss to net cash provided (used) by operating activities: Miscellaneous 35 819 97,895 34,952 Depreciation - - - - Decrease (increase) in assets Accounts receivable 14,299 1,462 - - Prepaid items 12,690 (165,166) (9,541) 10,421 Increase (decrease) in liabilities Accounts payable (8,021) 15,673 (73,773) 71,644 Contracts payable - - - - Accrued salaries payable 119 (1,843) - - Accrued flex spending (566) (3,185) - - Compensated absences payable 69,476 206,217 - - Other postemployment benefits payable 321,934 351,686 - - NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (214,503)$ (327,362)$ (175,681)$ (7,261)$ 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 -$ -$ -$ -$ Employee Flex Spending Uninsured Loss Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 193 2009 2008 2009 2008 2009 2008 -$ (201,616)$ (830,237)$ (334,094)$ (1,644,968)$ (1,393,013)$ - - - 1,000 97,930 36,771 - 757,794 984,996 129,197 984,996 886,991 - - - - 14,299 1,462 - - 4,026 (4,026) 7,175 (158,771) (39,468) 32,711 182,178 17,000 60,916 137,028 - - - - - - - - - - 119 (1,843) - - - - (566) (3,185) - - - - 69,476 206,217 - - - - 321,934 351,686 (39,468)$ 588,889$ 340,963$ (190,923)$ (88,689)$ 63,343$ -$ -$ 829,630$ -$ 829,630$ -$ -$ -$ 5,358,146$ -$ 5,358,146$ -$ (5,358,146)$ -$ -$ -$ (5,358,146)$ -$ Capital Replacement TotalsEquipment Replacement Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 194 CITY OF ST. LOUIS PARK, MINNESOTA GENERAL FUND BALANCE SHEET DECEMBER 31, 2009 (With Comparative Actual Amounts For The Year Ended December 31, 2008) 2009 2008 ASSETS Cash and temporary investments 13,651,250$ 13,344,851$ Receivables Unremitted tax collections 252,009 117,332 Delinquent taxes 483,131 519,667 Accounts 16,084 24,585 Accrued interest 61,747 76,286 Due from other governments 137,711 112,264 Inventory 13,719 13,719 Prepaid items - 15,649 TOTAL ASSETS 14,615,651$ 14,224,353$ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable 436,021$ 446,450$ Accrued salaries payable 662,837 578,018 Contracts payable 14,429 8,055 Due to other governments 61,624 31,720 Deposits payable 795,039 667,614 Deferred revenue 800,719 765,896 TOTAL LIABILITIES 2,770,669 2,497,753 FUND BALANCES Reserved for Inventory 13,719 13,719 Prepaid items - 15,649 E-911 funds 558,487 464,925 Unreserved Designated for cash flow 7,326,638 7,053,590 Undesignated 3,946,138 4,178,717 TOTAL FUND BALANCES 11,844,982 11,726,600 TOTAL LIABILITIES AND FUND BALANCES 14,615,651$ 14,224,353$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 195 CITY OF ST. LOUIS PARK, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES COMPARED TO BUDGET - CONTINUED ON THE FOLLOWING PAGES FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Actual Amounts For The Year Ended December 31, 2008) 2008 Variance with Final Budget Actual Positive Actual Original Final Amounts (Negative)Amounts REVENUES Taxes Property taxes 14,970,275$ 14,653,275$ 15,162,792$ 509,517$ 13,235,208$ Licenses and permits Business regulatory licenses 635,500 635,500 621,104 (14,396) 588,650 Non-business licenses and permits 1,879,500 1,879,500 2,158,063 278,563 3,526,811 Total licenses and permits 2,515,000 2,515,000 2,779,167 264,167 4,115,461 Intergovernmental Federal government 12,663 12,663 57,225 44,562 53,889 State shared taxes Highway user tax 490,000 490,000 455,023 (34,977) 440,862 Market value homestead credit - - 4,292 4,292 320,480 Insurance premium tax 650,000 650,000 530,822 (119,178) 547,335 State of Minnesota Other 60,000 60,000 73,662 13,662 71,463 P.E.R.A.45,205 45,205 45,205 - 45,205 Police training reimbursement 17,000 17,000 20,217 3,217 20,027 School district - - - - 42,780 Other local governments 372,346 372,346 383,863 11,517 361,197 Total intergovernmental 1,647,214 1,647,214 1,570,309 (76,905) 1,903,238 Charges for services General government 652,200 652,200 624,920 (27,280) 695,954 Public safety 113,700 113,700 81,884 (31,816) 109,652 Public works - signals/lighting 436,000 436,000 328,050 (107,950) 266,223 Culture and recreation - - - - 10,473 Total charges for services 1,201,900 1,201,900 1,034,854 (167,046) 1,082,302 Fines and forfeits Municipal court 304,000 304,000 318,395 14,395 314,853 Liquor violations 8,000 8,000 6,000 (2,000) 4,000 Property forfeits - - 7,549 7,549 5,999 Miscellaneous violations - - 750 750 - Total fines and forfeits 312,000 312,000 332,694 20,694 324,852 Interest on investments 350,000 350,000 260,263 (89,737) 358,753 Miscellaneous revenue Rent of City property 100,000 100,000 100,000 - 100,000 Miscellaneous 2,000 2,000 70,876 68,876 44,223 Total miscellaneous revenue 102,000 102,000 170,876 68,876 144,223 TOTAL REVENUES 21,098,389 20,781,389 21,310,955 529,566 21,164,037 Budgeted Amounts 2009 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 196 CITY OF ST. LOUIS PARK, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES COMPARED TO BUDGET - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Actual Amounts For The Year Ended December 31, 2008) 2008 Variance with Final Budget Actual Positive Actual Original Final Amounts (Negative)Amounts EXPENDITURES Current Expenditures General government Legislative Personal services 54,000$ 54,000$ 82,923$ (28,923)$ 86,509$ Other services and charges 250 250 100 150 - Total 54,250 54,250 83,023 (28,773) 86,509 Administration Personal services 477,500 477,500 434,735 42,765 439,090 Supplies 3,700 3,700 3,891 (191) 7,114 Other services and charges 455,385 455,385 407,806 47,579 482,065 Total 936,585 936,585 846,432 90,153 928,269 Human resources Personal services 481,000 481,000 478,862 2,138 463,095 Supplies 2,000 2,000 1,943 57 1,729 Other services and charges 160,550 160,550 102,367 58,183 120,314 Total 643,550 643,550 583,172 60,378 585,138 Communications, marketing and community outreach Personal services 261,480 261,480 224,186 37,294 234,480 Supplies 850 850 - 850 473 Other services and charges 112,950 112,950 128,718 (15,768) 159,505 Total 375,280 375,280 352,904 22,376 394,458 Technology and support services Personal services 575,000 562,500 573,640 (11,140) 568,420 Supplies 30,800 30,800 23,986 6,814 28,566 Other services and charges 877,970 877,970 817,168 60,802 756,359 Total 1,483,770 1,471,270 1,414,794 56,476 1,353,345 Accounting and assessing Personal services 999,200 937,200 971,763 (34,563) 886,399 Supplies 4,225 4,225 3,562 663 4,747 Other services and charges 163,555 163,555 145,912 17,643 230,152 Total 1,166,980 1,104,980 1,121,237 (16,257) 1,121,298 Budgeted Amounts 2009 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 197 CITY OF ST. LOUIS PARK, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES COMPARED TO BUDGET - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Actual Amounts For The Year Ended December 31, 2008) 2008 Variance with Final Budget Actual Positive Actual Original Final Amounts (Negative)Amounts Budgeted Amounts 2009 EXPENDITURES - CONTINUED Current Expenditures - continued General government - continued Community development Personal services 1,047,000$ 1,023,000$ 998,003$ 24,997$ 1,001,970$ Supplies 4,000 4,000 836 3,164 1,103 Other services and charges 56,750 56,750 51,493 5,257 47,114 Total 1,107,750 1,083,750 1,050,332 33,418 1,050,187 Facilities maintenance Personal services 534,000 534,000 529,197 4,803 497,539 Supplies 131,500 116,500 77,443 39,057 85,177 Other services and charges 537,942 502,942 413,488 89,454 433,478 Total 1,203,442 1,153,442 1,020,128 133,314 1,016,194 Total general government 6,971,607 6,823,107 6,472,022 351,085 6,535,398 Public safety Police Personal services 6,572,294 6,546,794 6,440,671 106,123 6,247,853 Supplies 184,175 184,175 114,734 69,441 115,881 Other services and charges 550,553 550,553 398,671 151,882 396,059 Total 7,307,022 7,281,522 6,954,076 327,446 6,759,793 Fire protection Personal services 2,815,680 2,815,680 2,748,867 66,813 2,614,820 Supplies 76,810 76,810 85,587 (8,777) 96,010 Other services and charges 224,183 224,183 197,255 26,928 205,381 Total 3,116,673 3,116,673 3,031,709 84,964 2,916,211 Inspection services Personal services 1,941,500 1,915,500 1,820,593 94,907 1,799,202 Supplies 22,300 22,300 11,893 10,407 19,334 Other services and charges 89,627 89,627 85,867 3,760 148,596 Total 2,053,427 2,027,427 1,918,353 109,074 1,967,132 Total public safety 12,477,122 12,425,622 11,904,138 521,484 11,643,136 Public works Public works administration Personal services 826,500 826,500 890,841 (64,341) 795,126 Supplies 5,500 5,500 4,319 1,181 2,334 Other services and charges 22,950 22,950 18,416 4,534 27,175 Total 854,950 854,950 913,576 (58,626) 824,635 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 198 CITY OF ST. LOUIS PARK, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES COMPARED TO BUDGET - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Actual Amounts For The Year Ended December 31, 2008) 2008 Variance with Final Budget Actual Positive Actual Original Final Amounts (Negative)Amounts Budgeted Amounts 2009 EXPENDITURES - CONTINUED Current Expenditures - continued Public works - continued Engineering Personal services 845,000$ 845,000$ 739,342$ 105,658$ 716,005$ Supplies 8,050 8,050 3,714 4,336 4,353 Other services and charges 68,750 68,750 53,962 14,788 31,292 Total 921,800 921,800 797,018 124,782 751,650 Public works operations Personal services 1,217,000 1,217,000 1,226,898 (9,898) 1,203,804 Supplies 374,500 374,500 376,132 (1,632) 420,597 Other services and charges 896,300 896,300 780,427 115,873 727,791 Total 2,487,800 2,487,800 2,383,457 104,343 2,352,192 Total public works 4,264,550 4,264,550 4,094,051 170,499 3,928,477 General services Other services and charges 180,000 180,000 7,662 172,338 2,653 TOTAL EXPENDITURES 23,893,279 23,693,279 22,477,873 1,215,406 22,109,664 DEFICIENCY OF REVENUES UNDER EXPENDITURES (2,794,890) (2,911,890) (1,166,918) 1,744,972 (945,627) OTHER FINANCING SOURCES (USES) Transfers in 2,628,910 2,678,910 2,685,300 6,390 2,558,321 Transfers out - - (1,400,000) (1,400,000) - TOTAL OTHER FINANCING SOURCES (USES)2,628,910 2,678,910 1,285,300 (1,393,610) 2,558,321 NET CHANGE IN FUND BALANCES (165,980) (232,980) 118,382 351,362 1,612,694 FUND BALANCES, JANUARY 1 11,726,600 11,726,600 11,726,600 - 10,113,906 FUND BALANCES, DECEMBER 31 11,560,620$ 11,493,620$ 11,844,982$ 351,362$ 11,726,600$ Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 199 SUPPLEMENTARY INFORMATION Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 200 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 201 SUPPLEMENTARY INFORMATION 2009 2008 REVENUES Property taxes 21,700,329$ 20,055,308$ 8.20 % Tax increments 7,846,204 8,371,424 (6.27) Franchise taxes 1,503,075 1,507,994 (0.33) Licenses and permits 2,786,032 4,072,753 (31.59) Intergovernmental 3,867,795 3,894,839 (0.69) Charges for services 4,228,179 2,424,119 74.42 Fines and forfeitures 332,694 324,512 2.52 Special assessments 800,054 703,484 13.73 Investment income 1,358,170 1,990,854 (31.78) Miscellaneous 2,615,062 3,591,212 (27.18) TOTAL REVENUES 47,037,594$ 46,936,499$ (15.15) % Per capita 996$ 994$ EXPENDITURES Current General government 6,472,022$ 6,642,295$ (2.56) % Public safety 11,949,612 11,744,656 1.75 Public works 4,637,289 4,671,631 (0.74) Public information 445,146 415,609 7.11 Culture and recreation 6,027,059 6,213,945 (3.01) Housing and rehabilitation 1,550,264 1,621,099 (4.37) Housing maintenance 128,099 199,757 (35.87) Social and economic development 6,241,123 5,162,698 20.89 General services 7,662 2,653 188.81 Capital outlay 10,314,002 9,998,748 3.15 Debt service Principal retirement 4,709,000 4,485,000 4.99 Interest and fiscal charges 1,322,477 1,365,484 (3.15) TOTAL EXPENDITURES 53,803,755$ 52,523,575$ 2.44 % Per capita 1,139$ 1,113$ Total Long-term indebtedness 17,995,000$ 26,710,000$ (32.63) % Per capita 381$ 566$ General Fund Balance - December 31 11,844,982$ 11,726,600$ 1.01 % Per capita 251$ 248$ 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 his report should be directed to Brian Swanson, Controller at (952) 924-2500. (Decrease) Increase Percent Total YEARS ENDED DECEMBER 31, 2009 AND 2008 CITY OF ST. LOUIS PARK, MINNESOTA SUMMARY FINANCIAL REPORT REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTAL FUNDS Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 202 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 203 STATISTICAL SECTION (Unaudited) This part of the City of St. Louis Park’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. Contents Page Financial Trends 168 These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity 180 These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity 188 These schedules present information to help the reader assess the affordability of the government’s current levels of out- standing debt and the government’s ability to issue additional debt in the future. Demo graphic and Economic Information 193 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information 195 These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 204 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) NET ASSETS BY COMPONENT LAST SEVEN FISCAL YEARS 2003 2004 2005 2006 Governmental activities Invested in capital assets, net of related debt 30,320,448$ 38,042,067$ 47,555,983$ 56,843,474$ Restricted 4,118,859 3,928,407 10,841,736 9,340,767 Unrestricted 66,744,367 65,641,642 59,482,664 60,462,334 Total governmental activities net assets 101,183,674$ 107,612,116$ 117,880,383$ 126,646,575$ Business-type activities Invested in capital assets, net of related debt 22,858,489$ 23,516,232$ 25,769,652$ 25,629,760$ Unrestricted 14,045,023 11,741,791 9,119,032 7,514,603 Total business-type activities net assets 36,903,512$ 35,258,023$ 34,888,684$ 33,144,363$ Total primary government Invested in capital assets, net of related debt 53,178,937$ 61,558,299$ 73,325,635$ 82,473,234$ Restricted 4,118,859 3,928,407 10,841,736 9,340,767 Unrestricted 80,789,390 77,383,433 68,601,696 67,976,937 Total primary government 138,087,186$ 142,870,139$ 152,769,067$ 159,790,938$ Note: Net assets are not available for years prior to 2003. Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 205 Table 1 2007 2008 2009 74,883,912$ 76,600,774$ 89,252,994$ 4,988,282 - - 54,265,656 65,908,328 60,584,731 134,137,850$ 142,509,102$ 149,837,725$ 25,644,428$ 27,559,942$ 23,977,469$ 7,499,935 6,414,768 6,903,776 33,144,363$ 33,974,710$ 30,881,245$ 100,528,340$ 104,160,716$ 113,230,463$ 4,988,282 - - 61,765,591 72,323,096 67,488,507 167,282,213$ 176,483,812$ 180,718,970$ Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 206 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET ASSETS - CONTINUED ON THE FOLLOWING PAGES LAST SEVEN FISCAL YEARS (accrual basis of accounting) 2003 2004 2005 2006 Expenses Governmental activities General government 7,777,663$ 6,580,494$ 6,802,845$ 7,155,916$ Public safety 9,695,943 9,765,605 10,262,906 11,695,841 Public works 8,472,450 4,805,735 5,520,192 6,895,260 Public information 235,749 255,237 262,962 231,124 Culture and recreation 4,724,014 5,477,788 6,262,800 6,399,633 Housing and rehabilitation 327,960 285,019 397,834 728,433 Housing maintenance 127,941 229,861 161,558 373,393 Social and economic development 2,957,607 1,105,501 3,888,897 9,784,543 General services 7,976 1,596 7,626 22,484 Interest on long-term debt 1,725,302 1,784,022 1,478,427 1,345,023 Total governmental activities expenses 36,052,605 30,290,858 35,046,047 44,631,650 Business-type activities Water 2,267,570 2,655,285 2,607,123 2,845,614 Sewer 4,173,457 3,986,920 3,904,543 4,268,952 Solid waste 2,535,119 1,996,615 2,019,204 2,029,302 Storm water 715,309 752,331 793,977 1,032,410 Wireless - - - 402,683 Total business-type activities expenses 9,691,455 9,391,151 9,324,847 10,578,961 Total expenses 45,744,060$ 39,682,009$ 44,370,894$ 55,210,611$ Program revenues Governmental activities Charges for services General government 695,405$ 645,050$ 639,679$ 936,199$ Public safety 2,247,213 2,739,097 3,488,259 3,049,369 Public works - - - 432,932 Culture and recreation 1,621,911 2,223,977 2,317,222 1,886,153 Housing and rehabilitation - - - 456,088 Housing maintenance 572,291 1,189,257 1,378,015 - Social and economic development - - - 32,456 Interest on long-term debt - - - - Operating grants and contributions 4,569,505 2,499,857 1,283,407 7,703,241 Capital grants and contributions 850,114 696,152 2,412,375 6,290,881 Total governmental activities program revenue 10,556,439 9,993,390 11,518,957 20,787,319 Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 207 Table 2 2007 2008 2009 8,251,341$ 8,216,816$ 8,167,355$ 10,721,803 11,867,403 12,138,185 5,979,789 6,904,217 6,915,541 404,074 425,829 457,872 6,916,001 7,352,406 7,456,215 1,079,211 1,615,010 1,544,175 121,118 199,757 128,099 5,910,149 5,494,634 6,321,623 6,830 2,653 7,662 1,301,266 1,329,767 1,543,879 40,691,582 43,408,492 44,680,606 3,285,107 3,391,992 4,089,837 4,199,659 4,485,386 4,228,680 2,019,595 2,135,677 2,125,540 1,088,170 1,172,199 1,287,202 1,151,751 315,664 151,708 11,744,282 11,500,918 11,882,967 52,435,864$ 54,909,410$ 56,563,573$ 978,058$ 955,811$ 888,246$ 2,977,475 4,282,699 2,958,383 1,483,824 380,452 2,292,287 2,409,625 2,121,505 2,083,015 527,536 507,163 562,930 - - - 202,110 173,960 184,236 - - 318,134 3,908,485 3,581,092 2,664,563 2,113,560 2,822,683 2,131,755 14,600,673 14,825,365 14,083,549 Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 208 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET ASSETS - CONTINUED LAST SEVEN FISCAL YEARS 2003 2004 2005 2006 Program revenues - Continued Business-type activities Charges for services Water 3,165,974$ 2,567,638$ 2,363,709$ 2,968,926$ Sewer 3,815,599 4,263,433 4,367,868 4,584,802 Solid waste 1,740,323 2,021,725 1,857,808 2,124,203 Storm water 631,332 802,856 914,701 1,169,915 Wireless - - - 41,057 Operating grants and contributions 95,606 - 119,165 236,181 Capital grants and contributions 220,244 - 1,236,740 209,277 Total business-type activities program revenue 9,669,078 9,655,652 10,859,991 11,334,361 Total program revenues 20,225,517 19,649,042 22,378,948 32,121,680 Net (expenses) revenues Governmental activities (25,496,166) (20,297,468) (23,527,090) (23,844,331) Business-type activities (22,377) 264,501 1,535,144 755,400 Total primary government (25,518,543)$ (20,032,967)$ (21,991,946)$ (23,088,931)$ General Revenues and Other Changes in Net Assets Governmental activities Taxes Property taxes 17,959,983$ 20,259,269$ 21,965,197$ 23,538,989$ Franchise taxes 274,072 1,283,654 1,431,779 1,358,902 State grants and contributions not restricted to specific programs 1,634,552 1,701,769 1,520,187 932,634 Unrestricted investment earnings 1,308,108 942,743 1,484,873 2,881,818 Miscellaneous 224,142 470,409 672,032 474,054 Gain on sale of capital assets 68,299 101,593 182,373 128,344 Transfers 1,036,995 1,966,473 2,095,521 1,923,760 Total governmental activities expenses 22,506,151 26,725,910 29,351,962 31,238,501 Business-type activities Unrestricted investment earnings 176,493 167,840 184,950 254,966 Miscellaneous 309 (111,357) 3,949 13,702 Gain on sale of capital assets 44 - 2,139 - Transfers (1,036,995) (1,966,473) (2,095,521) (1,923,760) Total business-type activities expenses (860,149) (1,909,990) (1,904,483) (1,655,092) Total primary government 21,646,002 24,815,920 27,447,479 29,583,409 Change in Net Assets Governmental activities (2,990,015) 6,428,442 5,824,872 7,394,170 Business-type activities (882,526) (1,645,489) (369,339) (899,692) Prior period adjustment - - - (474,033) Total primary government (3,872,541)$ 4,782,953$ 5,455,533$ 6,020,445$ Note: Changes in net assets are not available for years prior to 2003. Fiscal Year (accrual basis of accounting) Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 209 Table 2 2007 2008 2009 3,461,301$ 3,584,384$ 4,294,962$ 4,820,732 4,506,339 5,153,171 2,395,469 2,348,133 2,458,555 1,473,746 1,529,180 1,699,557 68,959 51,322 16,140 208,814 966,053 167,604 - 1,040,384 - 12,429,021 14,025,795 13,789,989 27,029,694 28,851,160 27,873,538 (26,090,909) (28,583,127) (30,597,057) 684,739 2,524,877 1,907,022 (25,406,170)$ (26,058,250)$ (28,690,035)$ 26,163,519$ 28,523,119$ 29,512,631$ 1,440,034 1,507,994 1,503,075 825,327 519,850 153,108 4,139,689 2,133,858 1,452,176 341,335 470,230 11,229 378,075 1,842,601 91,149 1,996,291 1,956,727 5,202,312 35,284,270 36,954,379 37,925,680 466,923 243,724 201,825 - 18,473 - - - - (1,996,291) (1,956,727) (5,202,312) (1,529,368) (1,694,530) (5,000,487) 33,754,902 35,259,849 32,925,193 9,193,361 8,371,252 7,328,623 (844,629) 830,347 (3,093,465) 143,969 - - 8,492,701$ 9,201,599$ 4,235,158$ Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 210 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 211 CITY OF ST. LOUIS PARK, MINNESOTA Table 3 STATISTICAL SECTION (UNAUDITED) GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST SEVEN 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 1,507,994 30,031,113 2009 29,512,631 1,503,075 31,015,706 Note: Tax revenues by source are not available for years prior to 2003. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 212 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN 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 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 Total all other governmental funds 54,875,056$ 55,426,198$ 58,456,063$ 57,791,349$ Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 213 Table 4 2004 2005 2006 2007 2008 2009 42,267$ 118,002$ 104,774$ 13,719$ 494,293$ 572,206$ 8,153,025 8,622,091 9,847,341 10,100,187 11,232,307 11,272,776 8,195,292$ 8,740,093$ 9,952,115$ 10,113,906$ 11,726,600$ 11,844,982$ 9,538,264$ 19,338,220$ 9,276,305$ 10,229,125$ 10,610,175$ 7,540,696$ 11,241,621 7,707,696 10,012,784 9,450,210 7,134,284 5,869,826 35,958,192 30,396,836 38,126,004 38,889,030 43,134,211 35,709,600 - 2,257,068 - - - - 56,738,077$ 59,699,820$ 57,415,093$ 58,568,365$ 60,878,670$ 49,120,122$ Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 214 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2000 2001 2002 2003 Revenues Taxes 15,159,608$ 15,558,802$ 17,546,588$ 17,963,805$ Tax Increments - - - - Licenses and permits 1,819,529 2,011,051 2,140,905 2,027,353 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 Fines and forfeits 263,433 296,336 277,812 294,408 Special assessments 686,427 611,976 574,314 553,086 Interest on investments 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 - - - - Payments made to escrow agent - - - - Proceeds from 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%30.39%16.05% Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 215 Table 5 2004 2005 2006 2007 2008 2009 20,146,562$ 21,909,256$ 19,416,738$ 20,951,991$ 21,563,302$ 23,203,404$ - - 5,390,257 6,597,092 8,371,424 7,846,204 2,569,868 2,932,988 2,934,270 2,946,749 4,072,753 2,786,032 3,608,768 5,410,252 12,943,457 4,482,834 3,894,839 3,867,795 4,935,172 4,197,987 2,394,509 3,737,619 2,424,119 4,228,179 251,256 286,003 322,558 276,693 324,512 332,694 920,680 827,361 843,030 840,965 703,484 800,054 854,636 1,323,843 2,717,490 3,851,542 1,990,854 1,358,170 2,431,999 2,397,275 2,648,354 3,038,836 3,591,212 2,615,062 35,718,941 39,284,965 49,610,663 46,724,321 46,936,499 47,037,594 5,298,509 5,662,931 5,985,314 6,642,231 6,642,295 6,472,022 9,628,174 11,221,408 11,060,618 10,851,256 11,744,656 11,949,612 4,000,282 3,772,650 4,934,433 4,089,223 4,671,631 4,637,289 249,388 259,461 227,106 393,863 415,609 445,146 4,786,730 5,271,726 6,095,959 7,274,375 6,213,945 6,027,059 285,019 397,834 739,391 688,062 1,621,099 1,550,264 229,861 161,558 373,393 121,118 199,757 128,099 791,110 1,405,434 9,464,720 5,822,842 5,162,698 6,241,123 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 1,693,689 1,626,517 1,450,460 1,304,565 1,365,484 1,322,477 - 59,589 - - - - 7,392,608 11,206,131 4,567,251 5,804,342 9,998,748 10,314,002 37,511,966 44,732,865 51,281,129 47,063,707 52,523,575 53,803,755 (1,793,025) (5,447,900) (1,670,466) (339,386) (5,587,076) (6,766,161) 10,608,768 9,650,253 6,432,713 8,383,989 11,129,934 9,939,299 (8,757,973) (8,716,751) (5,480,804) (7,008,202) (9,233,136) (10,579,081) (7,295,000) - - - - - - 2,370,000 - - - - 7,490,000 3,705,000 - - 5,490,000 2,000,000 - 151,602 - - - 10,202 (77,962) (5,746) - - - - - - - - - (199,425) 132,496 1,566,691 119,885 278,662 2,123,277 - 2,100,329 8,721,049 1,071,794 1,654,449 9,510,075 1,170,995 307,304$ 3,273,149$ (598,672)$ 1,315,063$ 3,922,999$ (5,595,166)$ 16.10%16.01%16.84%13.37%13.62%13.84% Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 216 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 2000 2001 2002 2003 Population (1)45,116 44,126 44,270 44,302 Real Property Total assessed/tax capacity value 55,667,480$ 42,290,304$ 44,639,956$ 46,957,116$ Less tax increment districts -(4,562,937) (3,352,152) (3,792,061) (4,313,399) Area-wide allocation (net)(2,237,020) (1,516,683) (1,477,254) (1,349,096) Net assessed/tax capacity value 48,867,523$ 37,421,469$ 39,370,641$ 41,294,621$ Estimated market value 2,949,779,200$ 3,388,855,800$ 3,805,624,900$ 4,121,540,000$ Personal Property Assessed/tax capacity value 684,766$ 409,514$ 420,338$ 436,947$ Estimated market value 20,238,400$ 20,686,500$ 21,270,900$ 22,114,100$ Total Real and Personal Property Assessed/tax capacity value 49,552,289$ 37,830,983$ 39,790,979$ 41,731,568$ Estimated market value 2,970,017,600$ 3,409,542,300$ 3,826,895,800$ 4,143,654,100$ Tax Capacity Rate 25.4%35.0%35.9%34.8% Source: Hennepin County Department of Property Records and Revenue (1) See the Schedule of Demographic and Economic Statistics on page 193 for personal income and population data. Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 217 Table 6 2004 2005 2006 2007 2008 2009 44,896 44,511 44,422 45,216 47,198 47,221 51,772,756$ 56,737,869$ 62,912,413$ 68,025,921$ 68,006,453$ 69,704,858$ (4,665,583) (5,211,867) (6,335,246) (7,644,566) (7,639,465) (8,276,993) (703,750) (1,153,662) (1,186,353) (1,498,263) (1,498,263) (1,635,724) 46,403,423$ 50,372,340$ 55,390,814$ 58,883,092$ 58,868,725$ 59,792,141$ 4,828,585,300$ 4,841,195,800$ 5,232,595,500$ 5,553,715,600$ 5,552,520,000$ 5,629,866,050$ 456,914$ 464,571$ 489,063$ 458,627$ 458,627$ 434,825$ 23,123,200$ 23,527,400$ 24,807,500$ 23,263,700$ 23,263,700$ 22,006,100$ 46,860,337$ 50,836,911$ 55,879,877$ 59,341,719$ 59,327,352$ 60,226,966$ 4,851,708,500$ 4,864,723,200$ 5,257,403,000$ 5,576,979,300$ 5,575,783,700$ 5,651,872,150$ 34.8%35.2%32.9%32.9%34.8%36.6% Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 218 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) PROPERTY TAX RATES - CONTINUED ON THE FOLLOWING PAGES DIRECT AND OVERLAPPING (1) GOVERNMENTS LAST FIVE FISCAL YEARS Fiscal Year 2005 35.571 %1.810 %37.381 %1.298 %44.172 % 2006 34.164 2.180 36.344 1.259 41.016 2007 32.344 2.394 34.738 1.336 39.110 2008 32.504 2.255 34.759 1.344 38.571 2009 34.402 2.265 36.667 1.759 40.413 Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Source: Hennepin County Department of Property Records and Revenue (1) Overlapping rates are those of local and county governments that apply to property owners within the City of St. Louis Park. Not all overlapping rates apply to all City of St. Louis Park property owners (e.g. the rates for the school districts will only apply to the portion of the property owners located within the geographic boundaries of each school district). Debt Total City of St. Louis Park Authority Park Housing St. Louis County Hennepin Rate Operating Rate Service Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 219 Table 7 19.176 %19.694 %22.762 %1.276 %0.342 %7.382 % 21.565 19.226 20.577 1.072 0.428 6.998 19.019 18.244 23.485 1.121 0.117 7.310 19.218 16.951 19.580 1.404 0.651 7.397 20.080 17.766 20.337 1.489 0.535 7.154 Districts Taxing Other #270 #273 #283 School Districts #3 #7 Watershed Districts Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 220 CITY OF ST. LOUIS PARK, MINNESOTA Table 7 STATISTICAL SECTION (UNAUDITED) PROPERTY TAX RATES - CONTINUED DIRECT AND OVERLAPPING (1) GOVERNMENTS LAST FIVE FISCAL YEARS Fiscal Year 2005 110.685 %111.203 %114.271 %109.751 %113.337 % 2006 108.254 105.915 107.266 107.610 106.622 2007 102.634 101.859 107.100 101.630 106.096 2008 102.693 100.426 103.055 101.940 102.302 2009 107.562 105.248 107.819 106.608 106.865 Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Source: Hennepin County Department of Property Records and Revenue (1) Overlapping rates are those of local and county governments that apply to property owners within the City of St. Louis Park. Not all overlapping rates apply to all City of St. Louis Park property owners (e.g. the rates for the school districts will only apply to the portion of the property owners located within the geographic boundaries of each school district). Totals School District and Watershed Tax District and #3 #270 #273 and #3 and #3 #283 and #7 #270 and #7 #283 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 221 CITY OF ST. LOUIS PARK, MINNESOTA Table 8 STATISTICAL SECTION (UNAUDITED) PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO Taxable Taxable Assessed Assessed Value Rank Value Rank Duke-Weeks Realty (formerly MEPC American Properties)72,900,000$ 1 1.29 %57,433,200$ 3 1.93 % Thomson Reuters Property Tax Service 57,000,000 2 1.01 - AEW VIF II Acquisition LLC 49,420,000 3 0.87 - Parkdale Property LLC 39,273,000 4 0.69 - Park Nicollet 38,500,300 5 0.68 - Target (formerly Dayton Hudson)18,325,000 6 0.32 - General Growth/Knollwood Co.18,250,000 7 0.32 23,541,800 6 0.79 Park Glen 26,390,000 8 0.47 - Park Shore Senior Campus LLC (formerly Park Blvd. Housing Partnership)23,805,000 9 0.42 13,035,500 10 0.44 Xcel Energy (formerly Northern States Power)14,489,900 10 0.26 - Interchange Investors (formerly WHIOP Real Estate Ltd. Partnership)- 83,000,000 1 2.79 Healthpartners - 58,478,600 2 1.97 Parkdale Associates - 54,193,800 4 1.82 Park Place OPCO LLC - 37,550,000 5 1.26 Teachers of Ohio - 18,300,000 7 0.62 PAH-DT Park Place Partners, LP - 14,458,500 8 0.49 General Realty - 13,763,700 9 0.46 Total 358,353,200$ 6.34 %373,755,100$ 12.58 % Source: Hennepin County Department of Property Records and Revenue Taxpayer Value Assessed Taxable Value Assessed Taxable of Total Percentage 2009 2000 of Total Percentage Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors PresentationPage 222 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collections Collections of Current of Prior Fiscal Year Total Tax Year's Taxes Year's Taxes Total Ended Levy for During Fiscal During Fiscal Collections December 31 Fiscal Year Period Period To Date 2000 12,573,516$ 12,507,597$ 99.48 %65,919$ 12,573,516$ 2001 13,252,491 13,087,658 98.76 164,833 13,252,491 2002 14,271,459 14,127,786 98.99 116,486 14,244,272 2003 14,536,228 13,844,355 95.24 658,638 14,502,993 2004 16,323,715 16,131,737 98.82 167,954 16,299,691 2005 17,901,681 17,686,884 98.80 190,146 17,877,030 2006 18,374,196 18,066,050 98.32 289,339 18,355,389 2007 19,546,981 19,311,423 98.79 213,494 19,524,917 2008 20,637,216 20,366,309 98.69 195,317 20,561,626 2009 22,070,208 21,765,646 98.62 - 21,765,646 Percentage Period During Fiscal Collected of Levy Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 223 Table 9 100.00 % 100.00 99.81 99.77 99.85 99.86 99.90 99.89 99.63 98.62 of Levy Percentage To Date Collected Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 224 CITY OF ST. LOUIS PARK, MINNESOTA Table 10 STATISTICAL SECTION (UNAUDITED) RATIOS OF OUTSTANDING DEBT BY TYPE LAST FIVE FISCAL YEARS General Total Percentage Fiscal Obligation Tax Increment Capital Revenue Notes Primary of Personal Per Year Bonds Bonds Leases Bonds Payable Government Income Capita (1) 2005 13,335,000$ 22,795,000$ 15,000$ 2,550,000$ 29,082$ 38,724,082$ 2.67%869.99 2006 12,645,000 17,125,000 7,500 2,365,000 1,791 32,144,291 2.15%723.61 2007 11,805,000 13,900,000 - 5,835,000 - 31,540,000 2.07%697.54 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 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 193 for personal income and population data. Governmental Activities Business Type Activities Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors PresentationPage 225 CITY OF ST. LOUIS PARK, MINNESOTA Table 11 STATISTICAL SECTION (UNAUDITED) RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST FIVE FISCAL YEARS Percentage of Less: Amounts Estimated General Available Actual Taxable Fiscal Obligation in Debt Value of Per Year Bonds Service Funds Total Property (1)Capita (2) 2005 13,335,000$ 1,200,313$ 12,134,687$ 0.25%272.62$ 2006 12,645,000 1,383,783 11,261,217 0.21%253.51 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 (1) See the Schedule of Assessed Value/Tax Capacity Value and Estimated Market Value on page 180 for property value data. (2) Population data can be found in the Schedule of Demographic Statistics on page 193. Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 226 CITY OF ST. LOUIS PARK, MINNESOTA Table 12 STATISTICAL SECTION (UNAUDITED) DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF DECEMBER 31, 2009 Share of Debt Percentage Overlapping Outstanding (1)Applicable (2)Debt Overlapping Debt: Hennepin County 600,494,317$ 3.78%22,698,685$ St. Louis Park Independent School District 54,914,328 99.53%54,656,231 Hopkins Independent School District 156,028,964 3.24%5,055,338 Edina Independent School District 82,581,000 0.06%49,549 Hennepin County Suburban Park District 71,017,752 5.13%3,643,211 Hennepin Regional RR Authority 42,430,624 3.78%1,603,878 Metropolitan Council 131,613,280 1.68%2,211,103 Subtotal of Overlapping Debt:1,139,080,265 89,917,994 Direct Debt: City of St. Louis Park 10,939,349 100.00%10,939,349 Total of Direct and Overlapping Debt:1,150,019,614$ 100,857,343$ 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 and 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 Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors PresentationPage 227 CITY OF ST. LOUIS PARK, MINNESOTA Table 13 STATISTICAL SECTION (UNAUDITED) LEGAL DEBT MARGIN INFORMATION LAST FIVE FISCAL YEARS 2005 2006 2007 2008 2009 Debt Limit 97,294,464$ 105,148,060$ 111,539,586$ 167,273,511$ 169,556,165$ Total Net Debt Applicable to Limit 3,613,070 3,497,669 3,127,988 2,747,414 2,356,466 Legal Debt Margin 93,681,394$ 101,650,391$ 108,411,598$ 164,526,097$ 167,199,699$ Total Net Debt Applicable to the Limit as a percentage of Debt Limit 3.71% 3.33% 2.80% 1.64% 1.39% Legal Debt Margin Calculation for Fiscal Year Estimated Taxable Market Value 4,864,723,200$ 5,257,403,000$ 5,576,979,300$ 5,575,783,700$ 5,651,872,150$ Debt Limit (2% of taxable market value, 3% after 2008)97,294,464$ 105,148,060$ 111,539,586$ 167,273,511$ 169,556,165$ Debt applicable to limit: Total Bonded Debt 38,680,000$ 32,135,000$ 31,540,000$ 36,280,000$ 27,180,000$ Less: Amount Set Aside for Repayment of G.O. Bonds (91,930) (207,331) (452,012) (487,586) (523,534) G.O. Revenue Bonds (2,550,000) (2,365,000) (5,835,000) (9,570,000) (9,185,000) G.O. Improvement Bonds (9,630,000) (8,940,000) (8,225,000) (7,480,000) (6,710,000) Tax Increment Bonds (22,795,000) (17,125,000) (13,900,000) (15,995,000) (8,405,000) Total Net Debt Applicable to Limit:3,613,070 3,497,669 3,127,988 2,747,414 2,356,466 Legal Debt Margin:93,681,394$ 101,650,391$ 108,411,598$ 164,526,097$ 167,199,699$ 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 taxable property. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations. Note B: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors PresentationPage 228 CITY OF ST. LOUIS PARK, MINNESOTA Table 14 STATISTICAL SECTION (UNAUDITED) PLEDGED REVENUE BOND COVERAGE LAST FIVE FISCAL YEARS Utility Less:Net Fiscal Charges Operating Available Year and Other Expenses Revenue Principal Interest Coverage 2005 928,139$ 285,431$ 642,708$ 180,000$ 118,895$ 2.15 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 6,147,782 4,991,003 1,156,779 385,000 338,981 1.60 Note: Details regarding the government's outstanding debt can be found in the notes to the financial statements. Utility charges and other includes investment earnings. Operating expenses do not include interest, depreciation or transfer out. (1) Includes 2001 Storm Water Revenue bonds, 2007 Storm Water and Water Revenue bonds, 2008 Utility Revenue bonds. (2) Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Debt Service (1) Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 229 CITY OF ST. LOUIS PARK, MINNESOTA Table 15 STATISTICAL SECTION (UNAUDITED) DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Personal Income (amounts expressed in Per Capita Median School Unemployment Year Population (1)thousands) (2)Income (2)Age (2)Enrollment (3)Rate (4) 2000 44,126 1,278,330 28,970 35.7 4,207 1.9% 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% Source:(1) St. Louis Park Community Development Department estimates (2) Federal Census Bureau data (3) St. Louis Park School District (4) Minnesota Department of Employment and Economic Development Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 230 CITY OF ST. LOUIS PARK, MINNESOTA Table 16 STATISTICAL SECTION (UNAUDITED) PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Employees Rank Employees Rank Park Nicollet Health Services and Methodist Hospital 6,022 1 22.7 %6,831 1 24.1 % St. Louis Park Public Schools 682 2 2.6 816 4 2.9 Knollwood Mall 600 3 2.3 - - Super Target 595 4 2.2 250 10 0.9 Sholom Home West 589 5 2.2 - - Allied Interstate 577 6 2.2 893 2 3.2 MoneyGram International (formerly Travelers Express)535 7 2.0 840 3 3.0 Japs-Olson Company 507 8 1.9 690 5 2.4 Byerly's 350 9 1.3 400 7 1.4 Miracle Mile Shopping Center 350 10 1.3 - St. Louis Park, City of 300 1.1 296 8 1.0 Nestle Nutrition (formerly Novartis Nutrition)- - 471 6 1.7 Quadion MN Rubber - - 250 9 0.9 Total 11,107 41.8 %11,737 41.5 % Source: State Department of Commerce. Fiscal Year 2009 2000 Employer Employment Percentage of Total City Percentage of Total City Employment Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors PresentationPage 231 CITY OF ST. LOUIS PARK, MINNESOTA Table 17 STATISTICAL SECTION (UNAUDITED) FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION LAST FIVE FISCAL YEARS 2005 2006 2007 2008 2009 Function General government 115.0 119.1 123.0 122.5 114.5 Public safety Police Officers 58.5 59.5 59.5 51.0 51.0 Civilians 11.0 11.0 11.0 18.5 17.0 Fire Firefighters and officers 25.0 25.0 25.0 25.0 25.0 Public Works 33.0 32.7 32.0 32.0 32.0 Water 7.8 7.8 10.3 11.4 11.4 Sewer 6.7 5.7 3.7 2.7 2.7 Solid waste 0.7 0.7 0.7 1.8 1.8 Storm water 2.0 2.0 2.6 2.6 2.6 Total Employees 259.8 263.5 267.8 267.5 258.0 Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 232 CITY OF ST. LOUIS PARK, MINNESOTA Table 18 STATISTICAL SECTION (UNAUDITED) OPERATING INDICATORS BY FUNCTION LAST FIVE FISCAL YEARS 2005 2006 2007 2008 2009 Police Medical calls 2,660 2,876 2,881 3,153 3,110 Traffic stops 1,959 2,510 1,981 2,724 2,462 Other 23,508 25,394 24,996 24,412 22,562 Fire Inspections 3,970 4,109 4,141 4,357 4,429 Fire calls - residential 38 67 45 52 82 Fire calls - structural 11 16 16 9 14 Fire calls - other 60 58 71 46 68 Cable TV Hours of new programming 121 124 94 294 250 Inspections Permits 8,092 8,527 8,616 13,687 8,895 Inspections 18,316 18,916 17,797 24,022 27,332 Culture and recreation Aquatic park attendance 88,491 75,380 80,347 76,218 67,619 Hours of ice time 6,546 6,508 6,574 6,787 6,354 Trees lost to dutch elm disease 1,467 702 686 681 564 Water Gallons of water production (billions 2.2 2.2 2.3 2.4 2.4 Average watermain breaks per year 30 30 30 30 30 Public Works Snowplowing hours 1,236 1,165 1,556 1,672 2,454 Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 233 CITY OF ST. LOUIS PARK, MINNESOTA Table 19 STATISTICAL SECTION (UNAUDITED) CAPITAL ASSET STATISTICS BY FUNCTION LAST FIVE FISCAL YEARS 2005 2006 2007 2008 2009 Function Public safety Police Stations 1 1 1 1 1 Patrol units 22 25 26 26 26 Fire Stations 2 2 2 2 2 Vehicles 10 13 13 13 13 Fire hydrants 1,699 1,699 1,699 1,699 1,699 Culture and recreation Parks 51 51 51 53 53 Trails 10 10 10 10 10 Streets Lane miles of streets 290 290 290 290 310 Miles of streets 117 117 117 117 155 Water Wells 11 11 11 11 11 Water treatment plants 6 6 6 6 6 Miles of watermain 148 148 148 148 148 Sanitary Sewer Lift stations 23 23 23 23 23 Miles of sewermain 138 138 138 138 138 Storm Sewer Ponds and lakes 26 26 26 26 26 Catch basins 2,943 2,943 2,943 2,943 3,154 Note: Fiscal Year 2005 was the first year of implementing GASB Statement No. 44. Fiscal Year Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 234 This page left blank intentionally. Meeting of June 21, 2010 (Item No. 2d) Subject: 2009 Financial Statements – Auditors Presentation Page 235 Meeting Date: June 21, 2010 Agenda Item #: 3a UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA MAY 24, 2010 The meeting convened at 7:38 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Paul Omodt, Julia Ross, Susan Sanger, and Sue Santa. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), Community Development Director (Mr. Locke), Planning/Zoning Supervisor (Ms. McMonigal), Communications Coordinator (Mr. Zwilling), and Recording Secretary (Ms. Hughes). Guests: Jami LaPray and Tom Miller, “Safety in the Park” representatives 1. Update and Policy Discussion of SWLRT project and Hennepin County MNDOT Kenilworth Freight Rail Relocation Study Mr. Harmening introduced the topic. Councilmember Sanger introduced Jami LaPray and Tom Miller, two residents who started “Safety in the Park.” She stated that Ms. LaPray and Mr. Miller organized the recent freight rail meeting at the high school. Mr. Locke presented the staff report and indicated that the County is in the process of selecting a consultant for the Kenilworth Rail Relocation Study which will look at how this might work if the St. Louis Park route were selected; this study will include heavy involvement by the community. He stated the SWLRT DEIS is currently underway and will be wrapped up this year. He explained that the past year has been dedicated to selecting the Locally Preferred Alternative (LPA) for routing of the SWLRT and the Metropolitan Council is scheduled to adopt the LPA into the region’s Transportation Policy Plan on Wednesday, May 26th; this action is necessary for federal funding. Councilmember Sanger explained that she served on the City’s railroad task force from 1997 to 1999, along with Councilmember Santa. She stated she has also been involved in the Policy Advisory Committee for SWLRT and is a big supporter of light rail. She expressed several concerns regarding freight rail relocation and the process undertaken to date, particularly with respect to the County’s statement that it now wants to do another study to determine how to engineer the relocation. She stated that the task force indicated that it did not want freight rail relocated to St. Louis Park, but if freight rail and transit cannot be done in Kenilworth, the task force report discussed how mitigation of impacts on St. Louis Park should be handled. City Council Meeting of June 21, 2010 (Item No. 3a) Page 2 Subject: Study Session Meeting Minutes May 24, 2010 She expressed concern that the County appears to make it sound as though St. Louis Park said it would like to have the railroads come through the City, and that statement is inaccurate. She stated that she is concerned about the rail company’s ability to utilize longer and heavier trains in the City as well as its ability to haul hazardous material through these neighborhoods. She stated that the County realignment study from 2009 includes no comparison among the six routes regarding nearby homes, how many homes are impacted, how close those homes are to the tracks, whether there are schools in the vicinity, or whether there are any hospitals or other sensitive uses in the area. She added the study also does not address the number of at-grade road crossings and does not consider traffic implications. She further stated the cost estimate to relocate the train traffic to each of the six locations does not include mitigation of homes, environmental impact, or traffic impact, except as it relates to Kenilworth. She addressed Exhibit 10 of the TCWR Freight Rail Realignment Study and indicated it appears the County is saying if light rail and freight rail are going to be parallel to each other in the Kenilworth corridor, the County would have to buy 35 properties, despite her encouragement to the County to evaluate light rail and freight rail in the same corridor and to relocate the bike trail. She reminded Council that a letter was sent to the Hennepin County Commissioners last year which succinctly outlined the City’s concerns and which requested a response by the County to the concerns raised by the City; no detailed response from the County was received. Councilmember Sanger proposed that the Council consider sending another request to the County for sufficient data and to continue to work with the County to help it understand that the cost to relocate freight rail traffic to St. Louis Park exceeds one or more of the other alternatives. She also asked that the Council consider joining with Minneapolis, Golden Valley, Edina, and some other communities to push for relocation further west to outstate Minnesota in order to get the train traffic out of the metro area and out of residential neighborhoods. She suggested that the Council pass a resolution clearly restating its opposition to relocation of freight rail in the City and clearly stating its position with respect to mitigation. She also requested that the City submit a formal request to the County to reopen and redo the analysis of all the alternative routes. She stated that the City’s residents need to know that the Council pushed for as much detail as possible from the County on this important issue. Councilmember Omodt agreed with Councilmember Sanger. Mayor Jacobs stated that he was also concerned about public safety as it relates to the potential rerouting of train traffic. He added that the City should push for more mitigation with whistle free zones if it is determined that freight rail will be relocated to St. Louis Park. Councilmember Sanger identified a number of steps the City should undertake as follows – build an alliance on this issue with Golden Valley and Edina; the Council should coordinate its efforts with the School District; the City should develop a strong public relations strategy around this issue; the City should document how many properties are impacted, how many properties are adjacent to railroad tracks and how close those properties are to railroad tracks, particularly as it relates to the railroad’s setback requirements; continue to work with the Safety in the Park committee; retain the City Council Meeting of June 21, 2010 (Item No. 3a) Page 3 Subject: Study Session Meeting Minutes May 24, 2010 easements in the City’s name that were obtained over the Golden property when it was redeveloped; and send a letter to the Met Council by May 26th outlining the City’s position on the possible rerouting of freight rail in St. Louis Park She stated that the City should keep in mind that the last possible resort may be litigation. Mayor Jacobs stated that he did not want the City to be viewed as an impediment to light rail. The City Council discussed the County’s alignment cost estimates and the process for obtaining federal funding for the project. Councilmember Mavity expressed her appreciation to Councilmember Sanger for her thoughtful comments on this issue and stated that she has concerns about the City being perceived as a fly in the ointment as it relates to light rail, when in fact the City supports light rail. She stated she is supportive of submitting another request to the County for additional detail. Mr. Locke stated that one of the benefits of the rerouting of freight rail is the elimination of some surface crossings on streets, while at the same time recognizing that other areas would get more traffic. He indicated that one of the challenges is to figure out what the mitigation price would be for the City and who will pay for that mitigation. He added that an opportunity is presented to figure out what it is the City needs to make this work. Councilmember Santa stated that it would be helpful to have an understanding of the federal guidelines with respect to the railroads. Mr. Harmening stated that based on Councilmember Sanger’s comments it appears there are three specific tasks requiring immediate attention as follows (1) passage of a resolution by the Council restating the City’s formal position regarding the relocation of freight rail, (2) submission of a formal request to the County asking the County to reanalyze the routes for freight rail in greater detail, and (3) that staff contact the Met Council to let it know the City’s position as it relates to SWLRT and to outline its concerns regarding the potential rerouting of freight rail. Councilmember Finkelstein stated that the resolution should make clear that that the City supports the concept of light rail, that it accepts the LPA, and that the City does not seek to delay implementation of the planning. Mr. Locke reminded the Council that a resolution was passed on January 19, 2010 supporting the County’s selection of LRT Route 3A as the locally preferred alternative; that resolution was provided to the Met Council and could serve as the basis for an updated policy position for Council adoption. He added that the City previously raised the issue of secondary and cumulative freight rail impact as it relates to light rail environmental impact; the City should remind the County to address that issue as well. City Council Meeting of June 21, 2010 (Item No. 3a) Page 4 Subject: Study Session Meeting Minutes May 24, 2010 Councilmember Sanger stated that the letter to Met Council should state that the City does not want freight rail relocated to St. Louis Park, but if in the end that is what is determined, there needs to be sufficient mitigation with funding sources identified, and the City should request a good explanation for why freight rail is being relocated within the City. It was the consensus of the City Council to direct staff to prepare a resolution for Council adoption that expresses the City’s position regarding the relocation of freight rail in the City. It was also the consensus of the City Council to direct staff to request the County re-look at all of the options for rerouting freight rail. It was also the consensus of the City Council to direct staff to prepare a letter to the Metropolitan Council indicating the City’s support for SWLRT and outlining the City’s position with respect to the rerouting of freight rail in St. Louis Park. 2. Future Study Session Agenda Planning – June 7 and June 14 Mr. Harmening presented the proposed special study session agenda for June 7 and the proposed study session agenda for June 14. He presented a summary of topics that Council has asked be brought back for further discussion and requested that the Council review this list and rank the items in order of importance for follow-up. 3. Communications (Verbal) Mayor Jacobs stated that St. Louis Park resident Catherine Tarsney recently won a national debate contest and requested that staff invite Ms. Tarsney to a Council meeting so that she may be properly recognized for this important accomplishment. The meeting adjourned at 9:15 p.m. Written Reports provided and documented for recording purposes only: 4. April 2010 Monthly Financial Report 5. City/School Cable TV Operations Agreement 6. Policy Statement Minority-Owned, Women’s Business Enterprises and Small Business 7. 2009 Solid Waste Annual Report 8. Inspections Department 2009 Activities Report 9. Hwy 7/Wooddale Project Update ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: June 21, 2010 Agenda Item #: 3b UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA JUNE 7, 2010 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, Paul Omodt, and Sue Santa. Councilmembers absent: Julia Ross and Susan Sanger. Staff present: City Manager (Mr. Harmening), City Clerk (Ms. Stroth), Community Development Director (Mr. Locke), Controller (Mr. Swanson), and Recording Secretary (Ms. Hughes). 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations - None 3. Approval of Minutes 3a. Study Session Minutes of May 10, 2010 The minutes were approved as presented. 3b. City Council Minutes of May 17, 2010 The minutes were approved as presented. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Approve Temporary On-Sale Intoxicating Liquor License – Church of the Holy Family at 5900 & 5925 West Lake Street for August 20 and August 21, 2010. 4b. Adopt Resolution No. 10-056 accepting Donation to the City to support the Environmental Coordinator’s Attendance at the 2010 International Society of Arboriculture Conference. City Council Meeting of June 21, 2010 (Item No. 3b) Page 2 Subject: City Council Meeting Minutes June 7, 2010 4c. Adopt Resolution No. 10-057 authorizing the special assessment for the repair of the water service line at 2311 Sumter Avenue South, St. Louis Park, MN - P.I.D. 08- 117-21-23-0093. 4d. Adopt Resolution No. 10-058 authorizing the special assessment for the repair of the water service line at 3049 Edgewood Avenue South, St. Louis Park, MN - P.I.D. #17-117-21-11-0012. 4e. Adopt Resolution No. 10-059 granting Conditional Use Permit under Section 36- 79 Relating to Zoning to Permit Excavation of over 400 Cubic Yards of Material. 4f. Approve a Joint Operations Agreement for operation and maintenance of Educational Access Channel 14 and the Community TV Studio. 4g. Adopt Resolution No. 10-060 supporting minority-owned business, women’s business enterprises and small business in contracting, professional services and purchasing. 4h. Adopt First Reading of an Ordinance setting fees for Multiple Re-inspection Fee for Licensed Businesses and Massage Therapist License and set second reading for June 14, 2010. 4i. Adopt Resolution No. 10-061 approving the issuance of a Tax-Exempt Tax Increment Revenue Refunding Note (Hoigaard Village Project), Series 2010A. 4j. Approval for Filing Planning Commission Minutes April 21, 2010. 4k. Approval for Filing Planning Commission Minutes May 5, 2010. 4l. Approval of Filing of Vendor Claims. 4m. Approval for Filing Telecommunication Commission Minutes February 11, 2010. It was moved by Councilmember Santa, seconded by Councilmember Mavity, to approve the Agenda as presented and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. The motion passed 5-0. 5. Boards and Commissions - None 6. Public Hearings 6a. Public Hearing and First Reading of housekeeping amendments to Home Rule Charter/City Code regarding staff positions and municipal elections Ms. Stroth presented the staff report and stated the housekeeping amendments are necessary for consistency with the recent revision to the election laws and changes to staff positions. She advised that the Charter Commission voted unanimously to recommend approval of the amendments. She noted that the ordinance must receive a unanimous vote of the entire City Council at the second reading. Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs closed the public hearing. City Council Meeting of June 21, 2010 (Item No. 3b) Page 3 Subject: City Council Meeting Minutes June 7, 2010 It was moved by Councilmember Finkelstein, seconded by Councilmember Omodt, to approve an Ordinance amending the St. Louis Park Home Rule Charter Sections 4.03, 4.06, 6.09, 6.10 concerning municipal elections and city position titles and to set Second Reading for June 14, 2010. The motion passed 5-0. It was moved by Councilmember Finkelstein, seconded by Councilmember Omodt, to approve an Ordinance amending the St. Louis Park Ordinance Code Sections 2-350, 2-351, 18-203, 32-34, and 32-99 concerning city position title and to set Second Reading for June 14, 2010. The motion passed 5-0. 6b. Public Hearing Wine & 3.2 Malt Liquor License – Sauce West End Ms. Stroth presented the staff report and stated that Sauce West End, LLC, dba Sauce Pizza & Wine, plans to open on June 21, 2010 at 1610 West End Boulevard. She stated the restaurant will feature Italian dishes, gourmet pizza, salads, and wine; the restaurant has several other locations in Colorado and Arizona. Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs closed the public hearing. It was moved by Councilmember Finkelstein, seconded by Councilmember Omodt, to approve application from Sauce West End, LLC, dba Sauce Pizza and Wine for an on-sale wine and 3.2 malt liquor license to be located at 1610 West End Boulevard with the license term through March 1, 2011. The motion passed 5-0. 6c. Public Hearing and Preliminary Resolution Authorizing the Pre-Sale of Educational Facility Revenue Notes for the Groves Academy Project – Series 2010. Resolution No. 10-062 Mr. Swanson presented the staff report and stated that Groves Academy is requesting that the City issue private activity revenue bonds for the purpose of refunding existing debt and financing the final phase of its facility expansion. He added the aggregate principal amount of the bonds will not exceed an amount of approximately $4,590,000. He introduced Julie Eddington from Kennedy & Graven and Pat Rosenberg from Groves Academy. Ms. Eddington stated that Groves Academy will utilize the funds to complete the expansion of their building and for a partial refunding of last year’s debt. She pointed out that the City will receive a fee based on the amount of bonds outstanding each year. City Council Meeting of June 21, 2010 (Item No. 3b) Page 4 Subject: City Council Meeting Minutes June 7, 2010 Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs closed the public hearing. It was moved by Councilmember Omodt, seconded by Councilmember Finkelstein, to adopt Resolution No. 10-062 giving Preliminary Approval to the Proposed Issuance of Revenue Bonds under Minnesota Statutes, Sections 469.152 through 469.165. The motion passed 5-0. 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items – None 9. Communications Mayor Jacobs presented the Council with bookmarks from the “Bookmark in the Park” committee; this year’s theme is “inclusion” and this year’s book is “Seedfolks” by Paul Fleishman. He expressed the City Council’s thanks to the committee for their work in promoting reading and literacy in the community. Mayor Jacobs stated the Parktacular “Splash in the Park” buttons are available for sale and encouraged residents to purchase a button. Information on purchasing the buttons is available at www.parktacular.org. He stated that buttons are also available for purchase at City Hall or Citizens Bank. He added there are many discounts offered with the button, including several buy one/get one free discounts as well as free admission to the concert on Saturday evening, June 19th. Councilmember Finkelstein stated that the Parktacular committee is still looking for volunteers; residents can contact Joan Fenton or Ann Thomas. Mr. Harmening reminded residents of the fire department open house on Tuesday, June 15th, from 5:30 to 8:30 p.m. at Fire Station #1 (3750 Wooddale Avenue). Mr. Harmening stated that the City’s outdoor aquatic park located at the Rec Center opened today. 10. Adjournment The meeting adjourned at 7:43 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: June 21, 2010 Agenda Item #: 3c UNOFFICIAL MINUTES CITY COUNCIL SPECIAL STUDY SESSION ST. LOUIS PARK, MINNESOTA JUNE 7, 2010 The meeting convened at 6:16 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, (arrived at 6:19 p.m.), Paul Omodt, and Sue Santa. Councilmembers absent: Councilmembers Julia Ross and Susan Sanger. Staff present: City Manager (Mr. Harmening), Police Chief (Mr. Luse), Police Lieutenant (Ms. Dreier), Communications Coordinator (Mr. Zwilling), Economic Development Coordinator (Mr. Hunt), Organizational Development Coordinator (Ms. Gothberg), Director of Inspections (Mr. Hoffman), Inspection Services Manager (Ms. Boettcher), and Recording Secretary (Ms. Hughes). Guest: Lisa Peilen, from the Minnesota Housing Association. 1. Proposed Rental Licensing Ordinance Changes Mr. Hoffman presented the staff report and the proposed changes to the rental licensing ordinance and introduced Lisa Peilen from the Minnesota Housing Association. He stated the goal of the proposed changes is to address issues when a property is not being managed properly. He explained that the ordinance has been crafted to include a provisional license which would be triggered when deficiencies lead to one or more of three conditions developing, i.e., (1) a high number of police calls for nuisance and criminal activity in the preceding 12 month period based on average per unit, (2) serious egregious activity, e.g., gang-related activity, and (3) unresolved property maintenance issues from poor management of the building or property. He stated the provisional license would establish a mitigation plan for the owner with specific requirements to assist in returning the business to a regular license. He stated the appropriate threshold number will require further research to ensure fairness and noted that the number of police calls would not include domestic abuse or medical calls. He added that the ordinance proposes to include a 100% surcharge at the time a provisional license is issued which is intended to cover added costs for the city. He stated the next step is an informational meeting with the current license holders for further discussion. The final ordinance would then be presented to Council for consideration at a first reading. Councilmember Mavity asked if there could be a situation where a particular property could have a provisional license for three years. Mr. Hoffman replied that would be unlikely and stated that if a property fails to come into compliance, the license would go into non-renewal or suspension and the City would pursue a court order directing the property owner to address the problems. City Council Meeting of June 21, 2010 (Item No. 3c) Page 2 Subject: Special Study Session Meeting Minutes June 7, 2010 Councilmember Finkelstein stated that he was in agreement with the proposed changes, particularly the provisional license component, and noted that the ordinance will encourage property owners to be responsible and to work on improving and making changes to their property when necessary. He added that staff will work with the property owners in that regard and the proposed changes are not directed at any specific property. He added that the Council is interested in keeping the City a livable place and the proposed ordinance changes are well within the City’s police powers. It was the consensus of the City Council to proceed with the proposed ordinance changes and to notify the current multi-family property owners about the ordinance changes, including scheduling an informational meeting for further discussion. 2. Update on Convention and Visitors Bureau Mr. Hunt presented the staff report and stated that staff has been discussing the convention and visitors bureau (CVB) concept with local business owners and the TwinWest Chamber of Commerce board. He indicated that staff and the President of the TwinWest Chamber have also been talking with local hoteliers about the CVB concept. He stated that from a general business perspective, most people think the CVB would be favorable to the community; for the hoteliers, the reaction has been mixed. He presented a memo from Mr. Bruce Nustad, President of TwinWest Chamber of Commerce, summarizing recent visits with local hoteliers. He suggested that the next step would be to bring the stakeholders together as a whole to obtain their input, to determine if they are willing to participate in the organization, and to discuss how the organization would be structured. He stated that the organization is proposed to be funded with a 3% local lodging tax, which is allowed by state statute. He then presented a draft concept plan for creation of a convention and visitors bureau. Mr. Harmening stated that the concept plan lists potential CVB focus areas and noted that the focus areas are intended to promote overall tourism in the community, including leisure tourism, meetings, conventions and events, as well as promoting economic growth in the community. He stated that it is proposed to create a separate 501(c)(3) organization with representation on the board by key stakeholders, including the City. Mr. Hunt stated that if a CVB is created, the hotels would collect the local lodging tax, send it to the Department of Revenue, and the Department of Revenue would then send it to the City for operation of the CVB; the City can take up to a 5% administrative fee. Councilmember Mavity asked if the proposed budget was drafted based on the full 3% local lodging tax being collected. Mr. Hunt stated that it makes sense to charge 3% at the outset because that is when the organization is most in need of money to fund upfront costs, etc. Councilmember Omodt stated he was in favor of the CVB concept and encouraged staff to keep moving as fast as possible on the creation of a CVB. He recalled an earlier comment by someone that there appeared to be some overlap with other convention and visitors bureaus. City Council Meeting of June 21, 2010 (Item No. 3c) Page 3 Subject: Special Study Session Meeting Minutes June 7, 2010 Mr. Hunt stated that the Marriott currently pays a fee into the Minneapolis Convention and Visitors Bureau, but there is no active promotion of facilities here in St. Louis Park. Mayor Jacobs stated it will be important to work with the Minneapolis Chamber of Commerce and other organizations, including the Minnesota Twins, to do some promotional work with them. Councilmember Santa asked that Three Rivers Park District be included as a stakeholder as a means of promoting biking tours throughout the area. Mr. Harmening stated that staff intends to hold one more stakeholder meeting, which will include local restaurants, and to then present Council with documents that create the CVB and put the local lodging tax in place. It was the consensus of the City Council to proceed with formation of a convention and visitors bureau for St. Louis Park. Mr. Harmening acknowledged the efforts of staff, including Mr. Hunt, Ms. Gothberg, and Mr. Zwilling. The meeting adjourned at 6:55 p.m. Written Reports provided and documented for recording purposes only: 3. Fire Stations & Northside Park Updates ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: June 21, 2010 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: Application to Municipal Agreement Program for Street Project - Highway 7 and Louisiana Avenue Intersection, Project No. 2012-0100. RECOMMENDED ACTION: Motion to Adopt Resolution Requesting Funding from the Minnesota Department of Transportation (Mn/DOT) through the Municipal Agreement Program for Street Project - Highway 7 and Louisiana Avenue Intersection, Project No. 2012-0100. POLICY CONSIDERATION: Does the City Council wish staff to continue to pursue funding for this project? BACKGROUND The City’s Capital Improvement Program (C.I.P.) indentifies the Hwy 7/Louisiana Avenue intersection as a priority improvement project. The proposed project will provide for the construction of a grade-separated interchange at Louisiana Avenue and Hwy 7. The project will also include pedestrian and bicycle friendly improvements along with re-configuration of the frontage roads in order to improve access, safety, and traffic flow for both the Hwy 7 corridor and Louisiana Avenue. This proposed improvement is essential in meeting the transportation and safety needs of both Mn/DOT and the City. FINANCIAL OR BUDGET CONSIDERATION: The estimated total project costs at this time are as follows: Total Project Cost (construction, ROW, agreements, design, etc.) Construction $16,500,000 Engineering $ 3,300,000 Right of Way $ 3,000,000 TOTAL PROJECT COSTS $21,800,000 (based on button-hook/round-about design) Funding Sources and Opportunities $7,630,000 in federal funds have been secured through the Met Council’s State Transportation Program Urban Grant solicitation. Staff has also sought other federal funding opportunities through grant applications and solicitations including requests to our US legislators. Current funding for Phase 1, 2 and 3 (project development and preliminary design) is coming from HRA levy proceeds which have been designated to pay for infrastructure improvements in redeveloping areas. City Council Meeting of June 21, 2010 (Item No. 4a) Page 2 Subject: Mn/DOT Municipal Agreement Funding Request (T.H. 7-Louisiana Improvement Project) One potential construction funding source is the Minnesota Department of Transportation’s Municipal Agreement Program. The Municipal Agreement Program provides funding to construction projects that are developed and administered by local agencies and provide a benefit to both the local community and the trunk highway system. The maximum amount attainable from this program for a project is $550,000 for construction, along with 8% for construction engineering and inspection, for a total of $594,000. There is a formal application and approval process used by Mn/DOT to award these funds. They are awarded on a competitive basis so there are no guarantees we will obtain these funds. As part of the application process, a Local Agency Resolution requesting funding from Mn/DOT through the Municipal Agreement Program is required. The application must be submitted to Mn/DOT by July 16, 2010 for the release of funds in fiscal year 2012. VISION CONSIDERATION: The following Strategic Direction and focus area has been identified by Council: St. Louis Park is committed to being a connected and engaged community. Focus will be on: • Promoting regional transportation issues and related dedicated funding sources affecting St. Louis Park including but not limited to Highway 100 and SWLRT. Attachments: Resolution Requesting Funding from the Mn/DOT through the Municipal Agreement Program. Prepared by: Jim Olson, Engineering Project Manager Reviewed by: Michael P. Rardin, Director of Public Works Approved by: Tom Harmening, City Manager City Council Meeting of June 21, 2010 (Item No. 4a) Page 3 Subject: Mn/DOT Municipal Agreement Funding Request (T.H. 7-Louisiana Improvement Project) RESOLUTION NO. 10-______ RESOLUTION TO REQUEST FUNDING FROM THE MINNESOTA DEPARTMENT OF TRANSPORTATION THROUGH THE MUNICIPAL AGREEMENT PROGRAM FOR STREET PROJECT - HIGHWAY 7 & LOUISIANA AVENUE INTERSECTION, PROJECT NO. 2012-0100 WHEREAS, the City of St. Louis Park has been planning improvements to improve the Trunk Highway (TH) 7 and Louisiana Avenue intersection; and WHEREAS, the City has begun the preliminary design for a new interchange and supporting roadway system at TH 7 and Louisiana Avenue; and WHEREAS, said proposed improvements include constructing a bridge over Louisiana Avenue, construction of access/exit ramps, and improvements to the local street system in order to allow the closure of three access points to TH 7; and WHEREAS, the estimated costs to construct the proposed improvements are $16.5 million; and WHEREAS, the City of St. Louis Park is therefore requesting $550,000 in Municipal Agreement funding and construction engineering/inspection for these improvements to the Mn/DOT trunk highway system (TH 7). NOW, THEREFORE BE IT RESOLVED, that the St. Louis Park City Council hereby requests $550,000 plus an additional $44,000 in construction engineering and inspection, for a total of $594,000 in funding from Mn/DOT through the Municipal Cooperative Agreement program for the TH 7 and Louisiana Avenue Interchange improvements. Reviewed for Administration: Adopted by the City Council June 21, 2010 City Manager Mayor Attest: City Clerk Meeting Date: June 21, 2010 City Council 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: Designating Polling Places and Appointing Election Judges for 2010 Elections. RECOMMENDED ACTION: Motion to adopt Resolution designating 2010 polling places and appointing election judges for the August 10, 2010 State Primary Election and the November 2, 2010 State General Election. POLICY CONSIDERATION: None BACKGROUND: MN Statute 204B.21, Subd. 2 and City Charter Section 4.05 provides that election judges for precincts shall be appointed by the governing body of the municipality and that the appointments be made at least 25 days before the election at which the election judges will serve. Election judges are assigned to precincts based on availability, party balance, and the number required for each location. Election judges are also allowed to serve without affiliation to a major political party, but are not allowed to perform certain tasks at the precinct. The resolution contains the names of those who have indicated a willingness and ability to serve as an election judge, and appointment by the Council will allow the judges to serve at the 2010 Elections. St. Louis Park will again be working with the city’s two senior high schools to recruit student election judges for the November 2, 2010 State General Election. Another resolution will be presented to Council in September to appoint additional election judges and student judges for the General Election. In Hennepin County, each city is responsible for training their election judges. To accommodate all the election judges this year, a total of eight 2½ hour paid training sessions are scheduled for regular and student judges, four Chair and Co-Chair training sessions, and additional training for absentee ballot board judges of new required absentee voting procedures. FINANCIAL OR BUDGET CONSIDERATION: Election expenses for judges are included in the adopted 2010 budget. Election judge pay has remained the same since 2006. Election judge hourly pay is as follows: $8.25 regular judges, $9.25 Co-Chair judges; $9.75 Chair judges. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community through recruitment and training of community members to serve as Election Judges. Attachments: Resolution Prepared by: Nancy Stroth, City Clerk Approved by: Tom Harmening, City Manager City Council Meeting of June 21, 2010 (Item 4b) Page 2 Subject: Designating Polling Places and Appointing Election Judges for 2010 Elections RESOLUTION NO. 10 -_____ RESOLUTION DESIGNATING POLLING PLACES AND APPOINTING ELECTION JUDGES FOR THE PRIMARY AND GENERAL ELECTION OF 2010 WHEREAS, the State Primary and General Election will be held on August 10, 2010 and November 2, 2010 at the following precinct polling locations: Ward 1 Precinct 1 – Benilde/St. Margaret’s High School, 2501 State Hwy 100 S Ward 1 Precinct 2 – Peter Hobart Elementary Center, 6500 W. 26th Street Ward 1 Precinct 3 – Peter Hobart Elementary Center, 6500 W. 26th Street Ward 1 Precinct 4 – Central Community Center, 6300 Walker Street Ward 1 Precinct 5 – St. Louis Park City Hall, 5005 Minnetonka Blvd. Ward 2 Precinct 6 – St. Louis Park City Hall, 5005 Minnetonka Blvd. Ward 2 Precinct 7 – St. Louis Park Recreation Center, 3700 Monterey Drive Ward 2 Precinct 8 – Susan Lindgren Intermediate Center, 4801 W 41st Street Ward 2 Precinct 9 – Aldersgate United Methodist Church, 3801 Wooddale Ave S Ward 3 Precinct 10 – Prince of Peace Lutheran Church, 8115 State Hwy No 7 Ward 3 Precinct 11 – St. Louis Park Senior High School, 6425 W. 33rd Street Ward 3 Precinct 12 – Lenox Community Center, 6715 Minnetonka Blvd. Ward 3 Precinct 13 – Aquila Elementary Center, 8500 W. 31st Street Ward 4 Precinct 14 – Westwood Lutheran Church, 9001 Cedar Lake Road Ward 4 Precinct 15 – Peace Presbyterian Church, 7624 Cedar Lake Road Ward 4 Precinct 16 – St. Louis Park Junior High School, 2025 Texas Ave S Ward 4 Precinct 17 – Peace Presbyterian Church, 7624 Cedar Lake Road WHEREAS, pursuant to MN Statute 206.58, the City of St. Louis Park authorizes the use of the certified ES&S Model 100 Optical Scan Precinct Voting Equipment, ES&S AutoMARK Assisted Voting Technology Equipment, and the ES&S Central Counter Model 650 for the tabulation of all absentee ballots; and WHEREAS, as authorized by MN Statute 204B.21, Subd. 2, election judges for precincts shall be appointed by the governing body of the municipality no later than 25 days before each election; and NOW, THEREFORE, BE IT RESOLVED, by the St. Louis Park City Council that the following individuals named on Exhibit A and on file in the office of the City Clerk are hereby appointed to serve as election judges, absentee ballot board judges, or alternate judges for the 2010 Primary and General Election; and City Council Meeting of June 21, 2010 (Item 4b) Page 3 Subject: Designating Polling Places and Appointing Election Judges for 2010 Elections BE IT FURTHER RESOLVED, the St. Louis Park City Council also appoints other individuals and all members appointed to the Hennepin County Absentee Ballot Board as authorized under Minn. Stat. 204B.21, subd. 2 under direction of the Election Manager to serve as members of the St. Louis Park Absentee Ballot Board; and BE IT FURTHER RESOLVED, that the City Clerk is with this, authorized to make any substitutions or additions as deemed necessary. Reviewed for Administration Adopted by the City Council June 21, 2009 City Manager Mayor Attest: City Clerk City Council Meeting of June 21, 2010 (Item 4b) Page 4 Subject: Designating Polling Places and Appointing Election Judges for 2010 Elections Resolution No. 10-___ Exhibit A Appointed 2010 Election Judges Ward 1 1-1, Benilde - St. Margaret’s Lou Schoen-Chair Mary Enz-Co-Chair Richard Steege-Co-Chair Nathan Proano Michele Struss Julie Anne Manuel Linda Hines Jill Dueseher Farrel Braunstein Elizabeth Fluegel Judith Cook Gus Virkus 1-2, Peter Hobart Primary Center Todd Hintz-Chair Eunice Slager-Co-Chair Margaret Marek Cheryl Kerr Jane Ahrens Jo Gruenberg Gloria Murman Constance Nerheim Michael Wyman Dianne Casey Henry Gagner Paula Keseley Gloria Miller 1-3, Peter Hobart Primary Center Kay Drache-Chair Jan Bloom-Co-Chair Jeffrey Murman Rose Bratland J. Hamilton Kurtz Elianna Thorne Thomas Morris Denise Zurn Margaret Rog Carla Kulas Katherine Kloehn Duane Googins Marcia Tuberman 1-4, Central Community Center Jami LaPray-Chair Nanette Malcomson-Co-Chair David Murray Ira Bagloo Theresa Arnold JoAnn Cox Nan Blomquist Dolores Novotney Dolores Novotney Donald Becker Janet Polach 1-5, City Hall - Community Room Barbara Ruhl-Chair Mary Maynard-Co-Chair Jane Angrist Ferda Olson Gail Goldstein Susan Wisely Karmit Bulman Esther Smith Lucille Thornsjo Gay Ann Ellingsberg Barb Osfar Barbara Lindblad Helen Osfar Ward 2 2-6, City Hall - Council Chambers Rick Marsden-Chair David Brehmer-Co-Chair Wade Wiken Katie McElroy Maureen Gormley Heidi Finnerud William Kenyon Marie Grimes Mary Johnson Philip Lindblad Duane Googins Carol Kohler Barbara Barbo City Council Meeting of June 21, 2010 (Item 4b) Page 5 Subject: Designating Polling Places and Appointing Election Judges for 2010 Elections 2-7, St. Louis Park Rec Center Margaret Plumeri-Chair Debra Wuebker-Co-Chair Kate Burggraff-Co-Chair David Richards Linda Grisim Scott Carpenter Judith Adams Steve Dubiak Kristi Gabrielson Deb Rawls Amy Bagne John Paul Gille Martha Rice Lyla Schemel Terry Ingram 2-8, Susan Lindgren Intermediate Center Jon Bloom-Chair Loren Botner-Co-Chair Katherine Thiessen Josh Susser Lawrence Carlson David Cox Patricia Monson Anne Kertes Cecile Javinsky Tom Lynch Roger Ruth Lindsey Powell 2-9, Aldersgate United Methodist Church David Larson-Chair Deb Bjorgaard-Co-Chair Charles Hubbard Mary Campbell Brian Fiderlein Melissa Cinnell Adriana Zona Marquerite Krause Margaret Adams Dawn Brunn Ronald Adams Ward 3 3-10, Prince of Peace Lutheran Church William Tape-Chair William Magdziarz-Rainey-Co-Chair Brendalee Litman Patricia Dalin Robin Kirscher Marlene Touchberry Clara Quinn Carol Johnson Betty Deane Brandee VonEschen Angela Fischels Lois Siegel Jo Tennison 3-11, St. Louis Park Senior High School Judith Serrell-Chair Janet Benson-Co-Chair Nancy Lapakko Emma Disrud Francis Schmit Kris Stapleton Kelley Rung Lois Nalezny Camille Ritter Kimberly Aune Tim Gormley Kelley Nelson 3-12, Lenox Community Center Patricia Otterblad-Chair MaryJo Scully-Co-Chair Gay Urness Ava Marske Kirsten Kurtz Agnes Holden Wenda Gallice Catherine Kiefer Judy Shapiro Sally Meyers Amy Thie Glenice Cannon 3-13, Aquila Primary Center Michael Williams-Chair Ken Huiras-Co-Chair Karen Secor Dward Kasan William Watson Irene Thoennes Myrtle Monroe Heather Mainella Elbert Sutliff Ruth Wohlers Carolyn Kaehr City Council Meeting of June 21, 2010 (Item 4b) Page 6 Subject: Designating Polling Places and Appointing Election Judges for 2010 Elections Ward 4 4-14, Westwood Lutheran Church Jean Stulberg-Chair Mary Wickersham-Chair Diana Schug Joan Lee Mary Wheeler Paul Tanick Joan Gerhardson Joan Bussen Jean Doherty Sandra Johnson 4-15, Peace Presbyterian Church Mary Hendrix-Chair Peter Gardner-Co-Chair Todd Kalk Sherm Stanchfield Lillian Goltzman Roger Strand Bonnie Skelton Richard Thorne Susan Kay Cochran Sheila Hanley Carol Schaub 4-16, St. Louis Park Junior High School Mary Lou Christensen-Chair Ross Plovnick-Co-Chair Frank Wells Bill Theobald Elaine Savick Patricia Palm Martin Lee Clint Clement Kathy McKay Paula Maisel Mary Kaye Conery Fred Rose 4-17, Peace Presbyterian Church Brenda Martens-Chair Stephan Koepcke-Chair Helen Desens Patricia Kremer Ross Oden John Steinert Michael George Josie Petermeier Michael George John White Lucille Epstein Arlene Drabek Absentee Ballot Board Judges Nancy Berlin Micki Danovsky Carol Evers Shirley Huiras Jo Jacobs Kathy Stehly Patricia Ploof Alice Tangney Kris Luedke Alternate Election Judges Jane Kahm Richard Olson Henry Solmer Fran Addington Dale Krishef Michael Held Peggy Hilgers Shirley Bierma Geri Stalling Jeanne Bearmon Edwin Worrell Dave Walters Barbara Wilensky Roberta Wilensky Max Addis Tom Green Bernice Hill Martha Roberts Ruby Addis Mary Wiedman Deanie Lerner Meeting Date: June 21, 2010 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: Bid Tabulation: Maintenance Project - 2010 Random Concrete Repair Project – Project No. 2010- 0003, 0004, & 0006. RECOMMENDED ACTION: Motion to designate Ron Kassa Construction, Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $116,190.00 for the 2010 Random Concrete Repair Project – Project No. 2010-0003, 0004, and 0006. POLICY CONSIDERATION: Does the City Council wish to continue the City’s practice of replacing sidewalk, curb and gutter and catch basins in need of repair? BACKGROUND: Bid Information: Bids were received on June 10, 2010 for the annual repair and construction of sidewalk, curb and gutter, and storm sewer catch basins at various locations in the city. Staff annually surveys the condition of sidewalks to identify hazards for repair. Panels of sidewalk that are cracked or have been lifted by tree roots to create trip hazards are removed and replaced under this contract. Curb and gutter with similar defects that create drainage or safety problems are also repaired. Deteriorating catch basins that are within the work area will also be repaired or rebuilt. Most of the work will be concentrated in next year’s sealcoating area (Area 3, which includes the Westwood Hills, Cedar Manor, Crestview, Westdale, Kilmer and Shelard Park neighborhoods). An advertisement for bids was published in the St. Louis Park Sun-Sailor on May 20, 2010. A total of two (2) bids were received for this project. A summary of the bid results is as follows: CONTRACTOR BID AMOUNT Ron Kassa Construction, Inc. $116,190.00 Concrete Idea, Inc. $139,060.00 Engineer’s Estimate $134,128.50 Evaluation of Bids: A review of the bids indicates Ron Kassa Construction, Inc. submitted the lowest responsible bid. Kassa is a reputable contractor that has worked for the city before and has successfully completed previous contracts. City Council Meeting of June 21, 2010 (Item No. 4c) Page 2 Subject: Bid Tabulation: 2010 Random Concrete Repair Improvement Project Nos. 2010-0003, 0004, and 0006 Construction Timeline: Construction typically occurs in July, August and September and is scheduled to be completed in 30 working days once construction begins. FINANCIAL OR BUDGET CONSIDERATION: A total of $165,000 in funds for this maintenance project are allocated in the Public Works Operations budget, Stormwater Utility budget and the Pavement Management budget. $80,000 of the Operations budget is available for sidewalk repairs. $50,000 of the Pavement Management budget plus $15,000 of the Operations budget is available for curb and gutter repairs. $20,000 of the Stormwater Utility budget is available for catch basin repairs. Approximately $22,000 of the Public Works Operations budget is being spent on the pilot project for sidewalk trip hazard repairs. As result, a balance of about $143,000 remains designated for these random concrete repairs. VISION CONSIDERATION: Not applicable. Attachments: None Prepared by: Jim Olson, Engineering Project Manager Reviewed by: Scott Brink, City Engineer Michael P. Rardin, Director of Public Works Approved by: Tom Harmening, City Manager Meeting Date: June 21, 2010 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: Tom Gasman Retirement Resolution RECOMMENDED ACTION: Motion to adopt Resolution to recognize Tom Gasman’s retirement after 27 years of service to the City of St. Louis Park POLICY CONSIDERATION: None. BACKGROUND: City policy states that employees who retire or resign in good standing with over 20 years of service will be presented with a Resolution from the Mayor, City Manager and City Council. This consent item will officially adopt the Resolution that honors Tom Gasman for his years of service. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: None. Attachments: Resolution Prepared by: Ali Fosse, HR Coordinator Reviewed by: Nancy Deno Gohman, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of June 21, 2010 (Item No. 4d) Page 2 Subject: Tom Gasman Retirement Recognition Resolution RESOLUTION NO. 10-___ RESOLUTION OF THE CITY COUNCIL OF ST. LOUIS PARK, MINNESOTA, RECOGNIZING THE CONTRIBUTIONS OF AND EXPRESSING APPRECIATION TO TOM GASMAN WHEREAS, Tom Gasman began his employment with the City of St. Louis Park over 27 years ago on September 20, 1982; and WHEREAS, Tom was born and raised in St. Louis Park and took pride in serving the residents of his hometown; and WHEREAS, Tom’s great sense of humor has provided much enjoyment to his fellow employees, he had the ability to make a very difficult job fun for those working with him; and WHEREAS, Tom took pride in his military service as a Jarhead/Marine, and says that “once a Marine always a Marine”; and WHEREAS, Tom took great satisfaction in training new staff on meter installation; and WHEREAS, Tom will always be remembered as the guy who walked into a serious utility business meeting on his hands; and WHEREAS, Tom worked on repairing over 800 watermain breaks during his time with the Utilities Division, many required working long days, weekends and holidays; and WHEREAS, Tom’s efforts in maintaining the water, sewer and storm sewer utilities provided great service to the people of St. Louis Park; NOW THEREFORE BE IT RESOLVED that the City Council of the City of St. Louis Park, Minnesota, by this Resolution and public record, would like to thank Public Service Worker Tom Gasman for his great contributions and over 27 years of dedicated service to the City of St. Louis Park and wish him the best in his retirement. Reviewed for Administration: Adopted by the City Council June 21, 2010 City Manager Mayor Attest: City Clerk Date: June 21, 2010 Agenda Item #: 4e Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Approve Right of Way Purchase – Highway 7/Wooddale Interchange Project – Project No. 2004- 1700. RECOMMENDED ACTION: Motion to approve right of way purchase in the total amount of $543,000 for Parcel 3 (the McGarvey Coffee Property, owned by the Sara Lee Corporation), and authorize the City Attorney to execute stipulation of settlement. POLICY CONSIDERATION: Not Applicable. This action is consistent with previous direction given by the Council. BACKGROUND: History: At the February 2, 2009 City Council meeting, Council approved a resolution Authorizing Condemnation of Land for Public Purposes for the Highway 7/Wooddale Interchange Project. Prior to that action, specific right of way needs were determined and appraisals for five identified properties were conducted. Since the action taken a year ago, the City Attorney commenced eminent domain proceedings pursuant to Minnesota Statutes Chapter 117 to acquire the necessary land over the five properties identified. Pursuant to the “quick take” provisions of Minnesota Statutes, the City Attorney has negotiated a settlement with the legal representatives of Parcel 3 in the total amount of $543,000. The City’s appraisal is in the amount of $493,000. The property owner would be entitled to appraisal reimbursement up to $5,000 if the matter is not settled. The City Attorney recommends approval of this settlement. The Parcel 3 property is located along the south frontage road of Highway 7 and east of Wooddale Avenue (5725 State Highway 7); this acquisition provides additional space for the re-alignment of the south frontage road. In addition to Parcel 3, the City Attorney also negotiated a settlement with Parcel 5 (located at Wooddale and 35th St.) which the City Council approved on March 1, 2010. Negotiations and condemnation settlements are still proceeding on three other properties. These include SPS (Apex Realty) on the south side of the highway, along with smaller amounts of property needed on the north side from the St. Louis Park School District (Central Community Center) and the small office building at the northeast corner of the Highway 7/Wooddale intersection. As negotiations are finalized on these remaining properties, similar purchase authorizations will be presented to Council. City Council Meeting of June 21, 2010 (Item No. 4e) Page 2 Subject: Approve Right of Way Purchase – Highway 7/Wooddale Interchange Project – Project No. 2004-1700 FINANCIAL AND BUDGET CONSIDERATION: The project budget as previously presented anticipates right of way acquisition costs, and is being funded through the City’s share of the project costs. VISION CONSIDERATION: The following Strategic Direction and focus area was identified by Council in 2007: St. Louis Park is committed to being a connected and engaged community. Focus will be on: • Promoting regional transportation issues and related dedicated funding sources affecting St. Louis Park. Attachments: SRF Plan Sheet – Parcel 3 Location Prepared by: Scott Brink, City Engineer Reviewed by: Mike Rardin, Director of Public Works Tom Scott, City Attorney Approved by: Tom Harmening, City Manager City Council Meeting of June 21, 2010 (Item No. 4e) Page 3 Subject: Approve Right of Way Purchase – Highway 7/Wooddale Interchange Project – Project No. 2004-1700 Meeting Date: June 21, 2010 Agenda Item #: 4f OFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA May 19, 2010 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Robert Kramer, Dennis Morris, Richard Person, Carl Robertson, Larry Shapiro MEMBERS ABSENT: Andrew Ford, Claudia Johnston-Madison STAFF PRESENT: Adam Fulton, Meg McMonigal, Nancy Sells 1. Call to Order – Roll Call 2. Approval of Minutes of April 21, 2010 and May 5, 2010 Commissioner Kramer made a motion to recommend approval of the minutes of April 21, 2010 and May 5, 2010. Commissioner Morris seconded the motion, and the motion passed on a vote of 4-0. (Commissioners Carper and Robertson arrived shortly after the vote.) 3. Hearings A. Amendment to Special Permit for U-Haul Rental Facility Location: 8951 36th St. West Applicant: J.J. Beske Holdings, LLC Case No.: 10-16-SP Chair Person stated that a letter was received on May 19, 2010 from the applicant requesting that the hearing be postponed until June 16, 2010. The Chair postponed the hearing until that date. B. Conditional Use Permit for Excavation – Sam’s Club Gas Station Location: 3745 Louisiana Avenue South Applicant: Sam’s Club/Wal-Mart Case No.: 10-17-CUP Adam Fulton, Planner, presented the staff report. He explained that there has been some differential settling of soil at the fueling station subsequent to construction. He explained that the soils to be excavated are probably not natural soils to the area. They are probably soils that developed over time through some of the industrial processes that occurred in this area. The 2,000 cubic yards referenced in the staff report may be exceeded a bit and the number will be modified in the Council report to reflect that. Mr. Fulton discussed the haul route and stated there is no concern about interference between the hauling and residential activity within the City. City Council Meeting of June 21, 2010 (Item 4f) Page 2 Subject: Planning Commission Minutes May 19, 2010 Mr. Fulton spoke about the Remedial Action Plan for the site which must be provided to the City as a condition of the Conditional Use Permit. Commissioner Kramer asked why it is believed that the canopy and small building won’t have settling problems. Mr. Fulton said he expected the engineering analysis determined that those footings are sufficiently stable. He added that a number of permits will be required from the Fire Marshall and Building Official to make sure construction specifications are met. Commissioner Kramer asked why the contaminated fill isn’t stable. Mr. Fulton said the material of concern is calcium hydroxide. He explained that it’s not an unstable material, it is just not a very desirable material for foundation. He said that the surrounding soils expand and contract at different rates resulting in some cracking, differential settling, and frost heave. Commissioner Morris said his understanding is that there will not be any physical changes to the site. Everything will look the same. Mr. Fulton replied that is correct and upon completion of this project the site will be restored to fully meet the exhibits from the 2005 Conditional Use Permit approval. Chair Person asked how many truckloads of material would be removed. Mr. Fulton said the general number on the high end is for 2,000 cubic yards of material. He said generally one short dump truck would take approximately 10 cubic yards or approximately 200 truck trips. He added that it is not known exactly how much soil will be excavated at the final count. Jarmon Peregoy, PE, Carlson Consulting Engineers, spoke about the foundation of the kiosk building and the frost depth in St. Louis Park. The foundations are already expected to go down to frost depth, about six feet. That penetrated the zone of contaminated soils. He explained in areas where the contaminated zone was slightly deeper, correction was made in the field during construction. Those footings are founded on good material. There aren’t concerns with settlement of that structure. Mr. Peregoy said the reason calcium hydroxide soil, also referred to as lime, is considered contaminated is because of the PH level which is somewhere around 12 – 12.5. 12.5 and over is hazardous material. They propose to test the soil as it comes out, as described in the Remedial Action Plan. If the PH is less than 12.5 it can be direct hauled to a facility. If it is over 12.5 it will be treated on site and hauled off. Commissioner Kramer asked if the PH is at a naturally occurring high level or if it happened as a result of industrial activity. Mr. Peregoy said it is due to the nature of the material and is the result of industrial process. He said it is not a naturally occurring soil. Commissioner Kramer asked where the material will be hauled. Mr. Peregoy said it will be hauled to a special waste facility. City Council Meeting of June 21, 2010 (Item 4f) Page 3 Subject: Planning Commission Minutes May 19, 2010 Commissioner Kramer asked about qualities if the waste is airborne. Mr. Peregoy responded that lime is used routinely. The lime is a thick layer which absorbs much moisture and pavement is rising up 5-6 inches which is why it is being corrected. In this case it is the PH level which is a concern. He said trucks carrying the material will be covered. Chair Person opened the public hearing. As no one was present wishing to speak, the Chair closed the public hearing. Commissioner Morris moved approval of the Conditional Use Permit subject to conditions recommended by staff. Commissioner Kramer seconded the motion and the motion passed on a vote of 6-0. 4. Other Business Meg McMonigal, Planning and Zoning Supervisor, spoke about the May 18th neighborhood meeting which was held to discuss the reuse of the Eliot School site. She asked if a Planning Commissioner would volunteer to be on the Task Force regarding the design guideline process for the reuse of the site. Commissioner Robertson indicated he would like to serve on the Task Force. 5. Communications A. Updates: West End Development, West End public art, Ellipse public art Commissioner Morris said he finds the West End site attractive but commented that the shops seem heavy on fast food and high end restaurants. The retail tenants seem to be more light weight than expected. Ms. McMonigal said the economy did change during the time of planning this development. She said Duke has done quite well in securing many leases considering the economic environment. She added that there weren’t any promises of particular stores or merchants. The restaurants are doing better in this environment right now than the typical retail stores. The development is about 70% leased. Discussion followed regarding the parking ramp, office development, road connections and bike connections. B. No meeting on June 2, 2010 5. Adjournment The meeting was adjourned at 6:27 p.m. Respectfully submitted, Nancy Sells Administrative Secretary Meeting Date: June 21, 2010 Agenda Item #: 4g Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Vendor Claims. RECOMMENDED ACTION: Motion to accept for filing Vendor Claims for the period June 1, 2010 through June 18, 2010. POLICY CONSIDERATION: Not applicable. BACKGROUND: The Finance Department prepares this report on a monthly basis for Council’s review. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: Not applicable. Attachments: Vendor Claims Prepared by: Connie Neubeck, Account Clerk 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 1Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 52.10FABRICATIONOTHER IMPROVEMENT SUPPLIES3M 52.10 50.88PARK AND RECREATION BALANCE SH INVENTORYA-1 OUTDOOR POWER INC 145.76TREE MAINTENANCE GENERAL SUPPLIES 196.64 37.51PARK GROUNDS MAINTENANCE GENERAL SUPPLIESAAA LAMBERTS LANDSCAPE PRODUCT 16.07STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 53.58 21.37SEWER UTILITY G&A BLDG/STRUCTURE SUPPLIESACE SUPPLY CO 21.37 2,330.00WATER UTILITY G&A OTHER CONTRACTUAL SERVICESACZ LABORATORIES INC 2,330.00 50.00NEIGHBORHOOD PUBLIC ART OTHER CONTRACTUAL SERVICESADELMANN, JACKIE 50.00 494.50H.V.A.C. EQUIP. MTCE BUILDING MTCE SERVICEALLIANCE MECH SRVCS INC 494.50 611.43PATCHING-PERMANENT OTHER IMPROVEMENT SUPPLIESALLIED BLACKTOP 611.43 172.33WATER UTILITY G&A GENERAL CUSTOMERSALYMER, BRIAN 172.33 117.20GENERAL BUILDING MAINTENANCE OPERATIONAL SUPPLIESAMERIPRIDE LINEN & APPAREL SER 206.28PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIES 133.08PARK MAINTENANCE G & A OPERATIONAL SUPPLIES 80.16ENTERPRISE G & A GENERAL SUPPLIES 93.32VEHICLE MAINTENANCE G&A OPERATIONAL SUPPLIES 109.78WATER UTILITY G&A OPERATIONAL SUPPLIES 109.78SEWER UTILITY G&A OPERATIONAL SUPPLIES 849.60 1,125.52SUPPORT SERVICES G&A OFFICE SUPPLIESANCHOR PAPER CO 1,125.52 1,026.90INSTALLATIONOTHER IMPROVEMENT SUPPLIESANDERSEN INC, EARL 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 2Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 1,453.76FABRICATIONOTHER IMPROVEMENT SUPPLIES 2,480.66 80.00RENTALRENT REVENUEANTHONY MIDDLE SCHOOL 80.00 193.10MUNICIPAL BLDG RENTAL BUILDINGSAPPLIANCE RECYCLING CENTERS 193.10 32.91COMMUNICATIONS/GV REIMBURSEABL TELEPHONEAT&T 32.91 1,100.00POLICE G & A TRAININGATOM 1,100.00 3,960.00WATER UTILITY G&A OTHERAUTOMATIC SYSTEMS INC 1,494.66WATER UTILITY G&A EQUIPMENT MTCE SERVICE 120.00SEWER UTILITY G&A EQUIPMENT MTCE SERVICE 5,574.66 587.00MUNICIPAL BLDG BUILDINGS & STRUCTURESB&M HAZELWOOD MASONRY INC 587.00 4,965.02OFF-LEASH DOG PARK OTHER IMPROVEMENT SUPPLIESBACHMANS 1,660.03BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALS 6,625.05 53.06FINANCE G & A OFFICE SUPPLIESBANKER'S EQUIPMENT SERVICE INC 53.06 277.41HUMAN RESOURCES GENERAL PROFESSIONAL SERVICESBARNA, GUZY & STEFFEN LTD 277.41 70.52ENGINEERING G & A OFFICE SUPPLIESBATTERIES PLUS 69.33WATER UTILITY G&A GENERAL SUPPLIES 139.85 32.31-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTSBEACON ATHLETICS 38.75PARK MAINTENANCE G & A GENERAL SUPPLIES 463.52PARK GROUNDS MAINTENANCE GENERAL SUPPLIES 469.96 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 3Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 50.82WATER UTILITY G&A GENERAL CUSTOMERSBENDER, ESTATE OF FRIMA 50.82 675.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICESBERGFORD ARCHITECTURE, JOHN 675.00 168.50ORGANIZED REC G & A MILEAGE-PERSONAL CARBIRNO, RICK 168.50 596.11EMPLOYEE FLEX SPEND G&A TUITIONBORKEN, AARON 596.11 11.39PARK AND RECREATION BALANCE SH INVENTORYBOYER TRUCKS LAUDERDALE 11.39 2,313.00STORM WATER UTILITY G&A OTHER CONTRACTUAL SERVICESBRAUN INTERTEC CORPORATION 2,313.00 2,792.89EMPLOYEE FLEX SPEND G&A TUITIONBRETZA, KIMBERLY 2,792.89 572.52PARK GROUNDS MAINTENANCE OTHER CONTRACTUAL SERVICESBRYAN ROCK PRODUCTS INC 572.52 21.66POLICE G & A OPERATIONAL SUPPLIESBURR, SUSAN 21.66 741.00OPERATIONSRADIO COMMUNICATIONSCALHOUN TOWERS APTS 741.00 5,458.97ADMINISTRATION G & A LEGAL SERVICESCAMPBELL KNUTSON PROF ASSOC 421.00STREET CAPITAL PROJ G & A IMPROVEMENTS OTHER THAN BUILDI 90.00RIGHT-OF-WAY IMPROVEMENTS OTHER THAN BUILDI 45.00WATER UTILITY G&A LEGAL SERVICES 6,014.97 566.43IT G & A EQUIPMENT MTCE SERVICECARTRIDGE CARE 566.43 3,784.41TECHNOLOGY REPLACEMENT OFFICE EQUIPMENTCDW GOVERNMENT INC 3,784.41 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 4Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 1,521.75DISCOUNT LOAN PROGRAM OTHER CONTRACTUAL SERVICESCENTER ENERGY & ENVIRONMENT 8,055.80MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICES 25,000.00TRANSFORMATION LOAN OTHER CONTRACTUAL SERVICES 34,577.55 1,369.90FACILITY OPERATIONS HEATING GASCENTERPOINT ENERGY 708.14PARK MAINTENANCE G & A HEATING GAS 40.09WESTWOOD G & A HEATING GAS 63.85NATURALIST PROGRAMMER HEATING GAS 52.54GO BONDS-FIRE STATIONS G&A HEATING GAS 2,881.16WATER UTILITY G&A HEATING GAS 98.50REILLY G & A HEATING GAS 241.10SEWER UTILITY G&A HEATING GAS 5,455.28 10,350.00EMPLOYEE FLEXIBLE SPENDING B/S OTHER RETIREMENTCENTRAL PENSION FUND 10,350.00 253.68WATER UTILITY G&A OPERATIONAL SUPPLIESCINTAS FIRST AID & SAFETY 253.68 80.00ADMINISTRATION G & A TRAININGCITIZENS INDEPENDENT BANK 67.85ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTAT 24.87ADMINISTRATION G & A MEETING EXPENSE 18.89HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENT 150.00IT G & A TRAINING 413.94ASSESSING G & A SEMINARS/CONFERENCES/PRESENTAT 2.94ASSESSING G & A BANK CHARGES/CREDIT CD FEES 445.14STORM WATER GENERAL SUPPLIES 390.50VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 225.00VEHICLE MAINTENANCE G&A SUBSCRIPTIONS/MEMBERSHIPS 400.00PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 67.56TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 2,286.69 14,584.52ADMINISTRATION G & A LEGAL SERVICESCOLICH & ASSOCIATES 14,584.52 159.95IT G & A DATACOMMUNICATIONSCOMCAST 159.95 3,909.20TV PRODUCTION NON-CAPITAL EQUIPMENTCOMCAST CABLE 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 5Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 3,909.20 57.98SYSTEM REPAIR OTHER CONTRACTUAL SERVICESCOMMISSIONER OF TRANSPORTATION 57.98 4,300.00COMMUNITY OUTREACH G & A OTHER CONTRACTUAL SERVICESCOMMUNITY MEDIATION SERVICES I 4,300.00 33.02PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIESCONSTRUCTION MATERIALS 33.02 600.00SOFTBALLOTHER CONTRACTUAL SERVICESCOX, BARB 600.00 32.01ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPSCROWN MARKING INC 318.43SUMMER PLAYGROUNDS GENERAL SUPPLIES 350.44 88.31POLICE G & A SUBSISTENCE SUPPLIESCUB FOODS 88.31 5,323.17SSD 1 G&A LANDSCAPING MATERIALSCUSTOM PRODUCTS & SERVICES 15,552.46SSD 1 G&A OTHER CONTRACTUAL SERVICES 2,265.36SSD 2 G&A LANDSCAPING MATERIALS 11,018.82SSD 2 G&A OTHER CONTRACTUAL SERVICES 3,740.44SSD 3 G&A LANDSCAPING MATERIALS 15,090.20SSD 3 G&A OTHER CONTRACTUAL SERVICES 682.74SSD #4 G&A LANDSCAPING MATERIALS 1,757.04SSD #4 G&A OTHER CONTRACTUAL SERVICES 55,430.23 591.46BUILDING MAINTENANCE BUILDING MTCE SERVICEDALSIN, JOHN & SONS INC 591.46 30.35SEWER UTILITY G&A GENERAL SUPPLIESDEKO FACTORY SERVICE INC 30.35 50.00NEIGHBORHOOD PUBLIC ART OTHER CONTRACTUAL SERVICESDELANEY, PARIS 50.00 2,893.50INSPECTIONS G & A DUE TO OTHER GOVTSDEPT LABOR & INDUSTRY 2,893.50 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 6Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 240.72ENTERPRISE G & A ADVERTISINGDEX MEDIA EAST LLC 240.72 1,009.01PAINTINGOTHER IMPROVEMENT SUPPLIESDIAMOND VOGEL 1,009.01 211.90ROUTINE MAINTENANCE EQUIPMENT PARTSDISCOUNT STEEL INC 211.90 1,422.02PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICESDJ ELECTRIC SERVICES INC 1,222.65AQUATIC PARK MAINTENANCE BUILDING MTCE SERVICE 2,644.67 1,357.75SUPPORT SERVICES G&A POSTAGEDO-GOOD.BIZ INC 1,357.75 250.00SOFTBALLOTHER CONTRACTUAL SERVICESDOOLEY, JOHN 250.00 34.00INSPECTIONS G & A PLUMBINGDRAIN PRO PLUMBING 34.00 1,350.58BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALSDUNDEE NURSERY 1,350.58 3,573.03SSD 1 G&A OTHER CONTRACTUAL SERVICESDYMANYK ELECTRIC INC 3,573.03 2,127.02ARENA MAINTENANCE BLDG/STRUCTURE SUPPLIESECOLAB INC 2,127.02 208.00POLICE G & A TRAININGEDEN PRAIRIE POLICE DEPT 208.00 28.94-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTSEDWARDS SALES 449.85SPLASH PAD MAINT - Oak Hill Pk GENERAL SUPPLIES 420.91 269.86SYSTEM REPAIR OTHER CONTRACTUAL SERVICESEGAN COMPANIES INC 269.86 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 7Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 100.00WATER UTILITY G&A GENERAL CUSTOMERSELANDER, MARGARET 100.00 196.51SEWER UTILITY G&A EQUIPMENT PARTSELECTRIC PUMP INC 11,804.04SEWER UTILITY G&A EQUIPMENT MTCE SERVICE 12,000.55 529.90PARK AND RECREATION BALANCE SH INVENTORYEMERGENCY APPARATUS MTNCE 529.90 125.00PLUMBING MTCE BUILDING MTCE SERVICEERICKSONS SEWER SERVICE INC 125.00 3,676.50WATER UTILITY G&A OTHERESCH CONSTRUCTION SUPPLY INC 3,676.50 34,088.22SOLID WASTE COLLECTIONS RECYCLING SERVICEEUREKA RECYCLING 34,088.22 541.86PARK AND RECREATION BALANCE SH INVENTORYFACTORY MOTOR PARTS CO 68.57GENERAL REPAIR GENERAL SUPPLIES 610.43 25.01PARK MAINTENANCE G & A GENERAL SUPPLIESFASTENAL COMPANY 4.08GENERAL REPAIR GENERAL SUPPLIES 390.76MUNICIPAL BLDG BUILDINGS & STRUCTURES 419.85 20.00HOUSING REHAB G & A TRAININGFEDERAL RESERVE BANK MPLS 20.00 65.17HUMAN RESOURCES GENERAL SUPPLIESFEDEX 43.29POLICE G & A POSTAGE 108.46 327.64ICE RESURFACER MOTOR FUELSFERRELLGAS 327.64 93.95FACILITIES MCTE G & A GENERAL SUPPLIESFINE HOMEBUILDING 93.95 70.13-GENERAL FUND BALANCE SHEET DUE TO OTHER GOVTSFLEX-O-LITE 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 8Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 1,090.13PAINTINGOTHER IMPROVEMENT SUPPLIES 1,020.00 126.41WATER UTILITY G&A GENERAL CUSTOMERSFORCELLE, TIMOTHY 126.41 12,665.47ARENA MAINTENANCE MAINTENANCEGARTNER REFRIG & MFG INC 12,665.47 2,250.00SEWER UTILITY G&A OTHER IMPROVEMENT SERVICEGENE'S WATER & SEWER INC. 2,250.00 2,763.85BUILDING MAINTENANCE EQUIPMENT MTCE SERVICEGENERAL PARTS INC 2,763.85 625.00SOFTBALLOTHER CONTRACTUAL SERVICESGHIZONI, DAVE 625.00 5,356.89AQUATIC PARK MAINTENANCE EQUIPMENT MTCE SERVICEGOETSCH ASSOCIATES INC, WW 5,356.89 2,500.00NEIGHBORHOOD PUBLIC ART OTHER CONTRACTUAL SERVICESGOODMAN, STACIA 2,500.00 10,827.00ASSET MANAGEMENT GENERAL PROFESSIONAL SERVICESGOODPOINTE TECHNOLOGY INC 10,827.00 11.90WATER UTILITY G&A BUILDING MTCE SERVICEGRAINGER INC, WW 11.90 547.50MUNICIPAL BLDG BUILDINGS & STRUCTURESGRAYBAR ELECTRIC CO 547.50 1,189.41GROUNDS MTCE EQUIPMENT MTCE SERVICEGREEN ACRES SPRINKLER CO 1,189.41 314.22WEED CONTROL OTHER CONTRACTUAL SERVICESGREEN HORIZONS 314.22 600.00IT G & A COMPUTER SERVICESGREEN, HOWARD R COMPANY 600.00 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 9Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 28.86PARK MAINTENANCE G & A GENERAL SUPPLIESGREENLIFE SUPPLY LLC 28.86 2,846.19WATER UTILITY G&A GENERAL CUSTOMERSGREENSBORO CONDOS 2,846.19 75.56WATER UTILITY G&A GENERAL SUPPLIESHACH CO 75.56 250.00SOFTBALLOTHER CONTRACTUAL SERVICESHAMILTON, MIKE 250.00 4,942.57AQUATIC PARK MAINTENANCE GENERAL SUPPLIESHAWKINS INC 20,170.08WATER UTILITY G&A OPERATIONAL SUPPLIES 25,112.65 60.39-PARK AND RECREATION BALANCE SH DUE TO OTHER GOVTSHCI CHEMTEC INC 938.79PARK GROUNDS MAINTENANCE GENERAL SUPPLIES 878.40 2,141.60STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEHEDBERG AGGREGATES 2,141.60 350.00SOFTBALLOTHER CONTRACTUAL SERVICESHENDERSON, TRACY 350.00 14,400.00CDBG BALANCE SHEET DUE TO OTHER GOVTSHENNEPIN COUNTY 14,400.00 2,404.48POLICE G & A EQUIPMENT MTCE SERVICEHENNEPIN COUNTY INFO TECH 800.00OPERATIONSRADIO COMMUNICATIONS 256.00OPERATIONSEMERGENCY PREPAREDNESS 3,460.48 2,553.37POLICE G & A SUBSISTENCE SERVICEHENNEPIN COUNTY SHERIFF 2,553.37 1,328.23IT G & A COMPUTER SERVICESHENNEPIN COUNTY TREASURER 366.98PARK MAINTENANCE G & A GARBAGE/REFUSE SERVICE 1,695.21 7,169.73MUNICIPAL BLDG BUILDINGS & STRUCTURESHENRICKSEN PSG 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 10Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 7,169.73 781.57IT G & A GENERAL PROFESSIONAL SERVICESHEYER SOLUTIONS 781.57 29.96WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIESHIRSHFIELDS 29.96 118.43GENERAL BUILDING MAINTENANCE GENERAL SUPPLIESHOME DEPOT CREDIT SERVICES 126.00ROUTINE MAINTENANCE GENERAL SUPPLIES 129.40PARK MAINTENANCE G & A GENERAL SUPPLIES 38.53PARK BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 64.10PARK GROUNDS MAINTENANCE GENERAL SUPPLIES 63.30BEAUTIFICATION / FLOWERS LANDSCAPING MATERIALS 10.69BUILDING MAINTENANCE GENERAL SUPPLIES 40.23AQUATIC PARK MAINTENANCE GENERAL SUPPLIES 14.10WATER UTILITY G&A SMALL TOOLS 27.38WATER UTILITY G&A BLDG/STRUCTURE SUPPLIES 211.22WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 9.85SEWER UTILITY G&A GENERAL SUPPLIES 7.72SEWER UTILITY G&A SMALL TOOLS 860.95 7.97POLICE G & A OPERATIONAL SUPPLIESHOME HARDWARE 17.28PATCHING-PERMANENT GENERAL SUPPLIES 350.75PARK MAINTENANCE G & A GENERAL SUPPLIES 376.00 44.00VOLLEYBALLOTHER CONTRACTUAL SERVICESHOWES, JEFFREY 94.00KICKBALLOTHER CONTRACTUAL SERVICES 475.00SOFTBALLOTHER CONTRACTUAL SERVICES 613.00 225.00SOFTBALLOTHER CONTRACTUAL SERVICESHOWES, KRISTINE 225.00 13.28WESTWOOD G & A TRAININGHSBC BUSINESS SOLUTIONS 27.37FAMILY PROGRAMS CONCESSION SUPPLIES 72.93STORM WATER UTILITY G&A EQUIPMENT PARTS 678.05MUNICIPAL BLDG BUILDINGS & STRUCTURES 791.63 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 11Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 132.60PARK AND RECREATION BALANCE SH INVENTORYI-STATE TRUCK CENTER 132.60 2,704.84IT G & A EQUIPMENT MTCE SERVICEIKON OFFICE SOLUTIONS 2,704.84 1,854.95CABLE TV G & A OTHER CONTRACTUAL SERVICESIMPLEX.NET INC 1,854.95 14.21IRRIGATION MAINTENANCE GENERAL SUPPLIESINDELCO 7.25AQUATIC PARK MAINTENANCE GENERAL SUPPLIES 123.98WATER UTILITY G&A OPERATIONAL SUPPLIES 145.44 267.19PARK GROUNDS MAINTENANCE OTHER IMPROVEMENT SUPPLIESINDEPENDENT BLACK DIRT CO 267.19 2,485.59IT G & A TELEPHONEINTEGRA TELECOM 2,485.59 71.84-GENERAL FUND BALANCE SHEET DUE TO OTHER GOVTSINTOXIMETERS INC 1,116.84POLICE G & A POLICE EQUIPMENT 1,045.00 5,136.20HUMAN RESOURCES RECRUITMENTIPMA-HR 5,136.20 63.37POLICE G & A OTHER CONTRACTUAL SERVICESIRON MOUNTAIN 63.37 41.36PARK GROUNDS MAINTENANCE GENERAL SUPPLIESJ & F REDDY RENTS 91.90AQUATIC PARK MAINTENANCE EQUIPMENT MTCE SERVICE 133.26 5.75VEHICLE MAINTENANCE G&A GENERAL SUPPLIESJERRY'S MIRACLE MILE 5.75 300.00WATER UTILITY G&A OTHER IMPROVEMENT SERVICEJM CONSULTING LTD 300.00 642.75WATER UTILITY G&A EQUIPMENT PARTSJOHN HENRY FOSTER MN 642.75 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 12Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 250.00SOFTBALLOTHER CONTRACTUAL SERVICESJOHNSON, KYLE 250.00 565,701.92MUNICIPAL BLDG BUILDINGS & STRUCTURESJORGENSON CONSTRUCTION INC 565,701.92 336.66PARK GROUNDS MAINTENANCE GENERAL SUPPLIESJRK SEED & SURG SUPPLY 336.66 90.00PARK PAVILIONS PROGRAM REVENUEJUSTESEN, MICHELE 90.00 1,096.78GENERAL BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIESK & K SALES 1,096.78 30.01GENERAL REPAIR GENERAL SUPPLIESKAMAN INDUSTRIAL TECH 30.01 426.50SAFETY SERVICES GENERAL SUPPLIESKANTOLA PRODUCTIONS LLC 426.50 120.00WESTWOOD G & A TRAININGKEHOSS, ADAM 120.00 48.00ESCROWSKENNEDY & GRAVEN 48.00 1,000.00FINANCE G & A OTHER CONTRACTUAL SERVICESKERN DEWENTER VIERE CPA 1,000.00 29,954.70GO BONDS-FIRE STATIONS G&A BUILDINGS & STRUCTURESKKE ARCHITECTS INC 29,954.70 94.01WATER UTILITY G&A GENERAL CUSTOMERSKROGSTAD, KIMBERLY 94.01 376.46WATER UTILITY G&A EQUIPMENT PARTSLARSCO INC 376.46 9.00HOUSING REHAB G & A MEETING EXPENSELARSEN, KATHY 56.10HOUSING REHAB G & A MILEAGE-PERSONAL CAR 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 13Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 65.10 267.55RELAMPINGOTHER IMPROVEMENT SUPPLIESLARSON, JH CO 398.01BUILDING MAINTENANCE GENERAL SUPPLIES 665.56 225.88GENERAL REPAIR GENERAL SUPPLIESLAWSON PRODUCTS INC 225.88 276.61WATER UTILITY G&A GENERAL CUSTOMERSLAY, DEBORAH 276.61 2,500.00ESCROWSBROOKSIDE TRAFFIC STUDYLDK BUILDERS 2,500.00 188,555.50UNINSURED LOSS B/S PREPAID EXPENSESLEAGUE OF MN CITIES INSURANCE 8,722.17UNINSURED LOSS G&A UNINSURED LOSS 197,277.67 678.50PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICESLEGEND TECHNICAL SERVICES 678.50 1,900.74ENGINEERING G & A OPERATIONAL SUPPLIESLEICA GEOSYSTEMS INC 1,900.74 56.00POLICE G & A OTHER CONTRACTUAL SERVICESLEXISNEXIS 56.00 52,738.04IT G & A COMPUTER SERVICESLOGIS 216.56SUPPORT SERVICES G&A COMPUTER SERVICES 52,954.60 15.00ENGINEERING G & A SUBSCRIPTIONS/MEMBERSHIPSMAAPT 15.00 79.03PARK AND RECREATION BALANCE SH INVENTORYMACQUEEN EQUIP CO 79.03 50.00FRANCHISE ADMINISTRATION SEMINARS/CONFERENCES/PRESENTATMACTA 50.00 1,752.34SSD #4 G&A OTHER CONTRACTUAL SERVICESMAPLE CREST LANDSCAPE 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 14Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 1,752.34 10,000.00ESCROWSPMC ESCROWMARTIN, JAYME 10,000.00 360.00SPECIAL PROJECTS GENERAL SUPPLIESMASON-CUTTERS 360.00 58.70WATER UTILITY G&A GENERAL CUSTOMERSMAUER, LISA MARCH 58.70 87.48WATER UTILITY G&A GENERAL CUSTOMERSMCDONNELL, MARK 87.48 103.20WATER UTILITY G&A GENERAL CUSTOMERSMCELFISH, MARY ELLEN 103.20 30.89INSTALLATIONOTHER IMPROVEMENT SUPPLIESMENARDS 109.31PARK MAINTENANCE G & A GENERAL SUPPLIES 73.49PARK BUILDING MAINTENANCE GENERAL SUPPLIES 94.32WESTWOOD G & A GENERAL SUPPLIES 54.45WESTWOOD G & A OTHER IMPROVEMENT SUPPLIES 17.09WATER UTILITY G&A GENERAL SUPPLIES 96.51WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 476.06 212.63KICKBALLGENERAL SUPPLIESMETRO ATHLETIC SUPPLY 958.67YOUTH PROGRAMS GENERAL SUPPLIES 1,171.30 212.00VOLLEYBALLOTHER CONTRACTUAL SERVICESMETRO VOLLEYBALL OFFICIALS 212.00 66,528.00INSPECTIONS G & A DUE TO OTHER GOVTSMETROPOLITAN COUNCIL 950.00REILLY BUDGET CLEANING/WASTE REMOVAL SUPPLY 303,683.28OPERATIONSCLEANING/WASTE REMOVAL SERVICE 371,161.28 21.49PARK AND RECREATION BALANCE SH INVENTORYMETROPOLITAN FORD OF EDEN PRAI 21.49 135.14PUBLIC WORKS OPS G & A GENERAL SUPPLIESMICRO CENTER 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 15Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 135.14 6,590.66PATCHING-PERMANENT OTHER IMPROVEMENT SUPPLIESMIDWEST ASPHALT CORP 13,175.28WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 19,765.94 2,190.00WATER UTILITY G&A OTHER CONTRACTUAL SERVICESMIDWEST TESTING LLC 2,190.00 11,633.34TREE REPLACEMENT TREE REPLACEMENTMILLER LLC, DAVID 11,633.34 139.98EMPLOYEE FLEXIBLE SPENDING B/S ACCRUED OTHER BENEFITSMINNESOTA BENEFIT ASSOC 139.98 58.78POLICE G & A OPERATIONAL SUPPLIESMINNESOTA CHIEFS POLICE ASSOC 58.78 1,312.67EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTSMINNESOTA CHILD SUPPORT PYT CT 1,312.67 209.48OPERATIONSFIRE PREVENTION SUPPLIESMINNESOTA CONWAY 209.48 21,571.00WATER UTILITY G&A OTHER CONTRACTUAL SERVICESMINNESOTA DEPT HEALTH 21,571.00 16.00EMPLOYEE FLEXIBLE SPENDING B/S ACCRUED OTHER BENEFITSMINNESOTA NCPERS LIFE INS 16.00 225.00PE INVEST/REVIEW/PER IMPROVEMENTS OTHER THAN BUILDIMINNESOTA POLLUTION CONTROL AG 225.00 754.00AQUATIC PARK BUDGET ADVERTISINGMINNESOTA PREMIER PUBLICATIONS 754.00 345.00WATER UTILITY G&A LICENSESMINNESOTA REVENUE 1,230.00REILLY BUDGET CLEANING/WASTE REMOVAL SERVICE 1,575.00 262.91WATER UTILITY G&A EQUIPMENT PARTSMINVALCO INC 262.91 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 16Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 55.00PICNIC SHELTERS RENT REVENUEMOOT, STACY 55.00 1,707.15COMMUNICATIONS/GV REIMBURSEABL EQUIPMENT MTCE SERVICEMOTOROLA 1,707.15 612.82PARK MAINTENANCE G & A GENERAL SUPPLIESMTI DISTRIBUTING CO 124.30IRRIGATION MAINTENANCE GENERAL SUPPLIES 737.12 265.00REILLY BUDGET OTHER CONTRACTUAL SERVICESMVTL LABORATORIES 265.00 1,011.62PUBLIC WORKS OPS G & A SMALL TOOLSNAPA (GENUINE PARTS CO) 4.80SWEEPINGEQUIPMENT PARTS 705.85PARK AND RECREATION BALANCE SH INVENTORY 12.38PARK MAINTENANCE G & A GENERAL SUPPLIES 54.44AQUATIC PARK MAINTENANCE GENERAL SUPPLIES 91.39VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 64.56GENERAL REPAIR GENERAL SUPPLIES 28.77SEWER UTILITY G&A GENERAL SUPPLIES 1,973.81 2,080.00EMPLOYEE FLEX SPEND G&A TUITIONNELSON, MARK 2,080.00 55.18CRACK SEALING PROJECTS GENERAL SUPPLIESNEP CORP 12.15PARK MAINTENANCE G & A GENERAL SUPPLIES 62.92VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 130.25 450.00PERFORMING ARTS OTHER CONTRACTUAL SERVICESNEW FOLK PRODUCTIONS 450.00 79.97ADMINISTRATION G & A TELEPHONENEXTEL COMMUNICATIONS 157.41HUMAN RESOURCES TELEPHONE 375.27RESEARCH & DEVELOPMENT TELEPHONE 72.97ASSESSING G & A TELEPHONE 73.04FINANCE G & A TELEPHONE 278.24EDA / HA REIMBURSEMENT TELEPHONE 1,226.67POLICE G & A TELEPHONE 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 17Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 533.93OPERATIONSTELEPHONE 72.97INSPECTIONS G & A TELEPHONE 298.63ENGINEERING G & A TELEPHONE 458.10PUBLIC WORKS OPS G & A TELEPHONE 186.61PARK AND REC G&A TELEPHONE 343.96ORGANIZED REC G & A TELEPHONE 348.47PARK MAINTENANCE G & A TELEPHONE 78.31ENVIRONMENTAL G & A TELEPHONE 308.48WESTWOOD G & A TELEPHONE 72.97REC CENTER/AQUATIC PARK SAL TELEPHONE 202.35VEHICLE MAINTENANCE G&A TELEPHONE 374.94WATER UTILITY G&A TELEPHONE 182.13SEWER UTILITY G&A TELEPHONE 39.23SOLID WASTE G&A TELEPHONE 5,764.65 100.32AQUATIC PARK MAINTENANCE GENERAL SUPPLIESNORTHERN AIRE SWIMMING POOLS 100.32 9,500.00POLICE G & A OTHER CONTRACTUAL SERVICESNORTHERN STAR JUVENILE DIVERSI 9,500.00 20.00HUMAN RESOURCES MEETING EXPENSENORTHSTAR CHAPTER APA 20.00 80.15ENGINEERING G & A OPERATIONAL SUPPLIESNORTHWEST LASERS INC 80.15 500.00PERFORMING ARTS OTHER CONTRACTUAL SERVICESO'HAGAN, JEROL 500.00 500.00POLICE G & A OTHER CONTRACTUAL SERVICESOAK KNOLL ANIMAL HOSPITAL 500.00 59.48ADMINISTRATION G & A OFFICE SUPPLIESOFFICE DEPOT 36.96HUMAN RESOURCES OFFICE SUPPLIES 60.84SUPPORT SERVICES G&A EQUIPMENT MTCE SERVICE 42.97ASSESSING G & A OFFICE SUPPLIES 57.34FINANCE G & A OFFICE SUPPLIES 53.58POLICE G & A OFFICE SUPPLIES 18.97POLICE G & A OPERATIONAL SUPPLIES 106.73NEIGHBORHOOD OUTREACH OPERATIONAL SUPPLIES 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 18Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 19.08PUBLIC WORKS OPS G & A OFFICE SUPPLIES 250.74ORGANIZED REC G & A OFFICE SUPPLIES 19.08PARK MAINTENANCE G & A OFFICE SUPPLIES 92.54WESTWOOD G & A OFFICE SUPPLIES 19.07VEHICLE MAINTENANCE G&A OFFICE SUPPLIES 837.38 1,220.31ADMINISTRATION G & A GENERAL PROFESSIONAL SERVICESOFFICE TEAM 2,388.47INSPECTIONS G & A GENERAL PROFESSIONAL SERVICES 3,608.78 294.79GENERAL REPAIR GENERAL SUPPLIESOLSEN CHAIN & CABLE CO INC 294.79 267.20PORTABLE TOILETS/FIELD MAINT OTHER CONTRACTUAL SERVICESON SITE SANITATION 267.20 465.00BUILDING MAINTENANCE BUILDING MTCE SERVICEPBBS EQUIPMENT CORP 465.00 40.00DWI ENFORCEMENT LICENSESPETTY CASH 5.14WATER UTILITY G&A GENERAL SUPPLIES 19.01WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 17.27WATER UTILITY G&A IMPROVEMENTS OTHER THAN BUILDI 81.42 10,027.00ROUTINE MAINTENANCE OTHER CONTRACTUAL SERVICESPHILIP'S TREE CARE INC 64.13PARK GROUNDS MAINTENANCE GENERAL SUPPLIES 524.22PARK GROUNDS MAINTENANCE OTHER CONTRACTUAL SERVICES 121.12AQUATIC PARK MAINTENANCE OTHER CONTRACTUAL SERVICES 507.83WATER UTILITY G&A BUILDING MTCE SERVICE 11,244.30 691.05REILLY BUDGET EQUIPMENT PARTSPLANT & FLANGED EQUIPMENT 691.05 361.40PARK MAINTENANCE G & A TELEPHONEPOPP TELECOM 361.40 175.65WATER UTILITY G&A POSTAGEPOSTMASTER - PERMIT #603 175.65SEWER UTILITY G&A POSTAGE 175.66SOLID WASTE COLLECTIONS POSTAGE 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 19Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 175.65STORM WATER UTILITY G&A POSTAGE 702.61 5,369.23GROUNDS MTCE OTHERPRAIRIE LAWN & GARDEN 5,369.23 855.06BEAUTIFICATION / FLOWERS OTHER IMPROVEMENT SUPPLIESPRAIRIE RESTORATIONS INC 1,609.27STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 2,464.33 994.73ICE RESURFACER EQUIPMENT MTCE SERVICEPRINTERS SERVICE INC 994.73 122.60INSPECTIONS G & A BUILDINGPROBUILT AMERICA 122.60 1,526.64WATER UTILITY G&A GENERAL PROFESSIONAL SERVICESPROGRESSIVE CONSULTING ENGINEE 1,526.64 506.59BLDG/GROUNDS OPS & MAINT BLDG/STRUCTURE SUPPLIESPUMP & METER SERVICE 506.59 31,107.90WATER UTILITY G&A OTHER IMPROVEMENT SERVICEQ3 CONTRACTING 31,107.90 70.99IT G & A TELEPHONEQWEST 2,053.43COMMUNICATIONS/GV REIMBURSEABL TELEPHONE 2,124.42 2,132.63FACILITY OPERATIONS GARBAGE/REFUSE SERVICERANDY'S SANITATION INC 961.79REC CENTER BUILDING GARBAGE/REFUSE SERVICE 93.76WATER UTILITY G&A GARBAGE/REFUSE SERVICE 748.30SOLID WASTE COLLECTIONS GARBAGE/REFUSE SERVICE 3,936.48 34.50WATER UTILITY G&A POSTAGERAPID GRAPHICS & MAILING 34.50SEWER UTILITY G&A POSTAGE 34.50SOLID WASTE COLLECTIONS POSTAGE 34.50STORM WATER UTILITY G&A POSTAGE 138.00 3,475.00ESCROWSPMC ESCROWRECKARD, ANDREW & SARAH 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 20Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 3,475.00 1,000.00ESCROWSPMC ESCROWREINHOLD, SAM & ARGINA 1,000.00 175.06GENERAL REPAIR EQUIPMENT MTCE SERVICERESTORATION AUTO GLASS NEW BRI 175.06 945.79SUPPORT SERVICES G&A EQUIPMENT MTCE SERVICERICOH AMERICAS CORP 945.79 150.00SEASON PASSES PROGRAM REVENUEROUNDS, DAVID 150.00 2,750.00PERFORMING ARTS OTHER CONTRACTUAL SERVICESRUBBER SOUL ENTERTAINMENT 2,750.00 879.12EMPLOYEE FLEX SPEND G&A TUITIONRUD, JOSEPH 879.12 27.07WATER UTILITY G&A GENERAL CUSTOMERSRUNYON, MARGARET 27.07 315.00PARK PAVILIONS PROGRAM REVENUERUTTGER, THERESA 315.00 164.62OPERATIONSGENERAL SUPPLIESSAM'S CLUB 229.50OPERATIONSFIRE PREVENTION SUPPLIES 35.00ORGANIZED REC G & A SUBSCRIPTIONS/MEMBERSHIPS 47.76SPECIAL EVENTS GENERAL SUPPLIES 152.16LIFEGUARDINGGENERAL SUPPLIES 629.04 90.00PARK PAVILIONS PROGRAM REVENUESANCTUARY COVENANT CHURCH 90.00 128.83HUMAN RESOURCES RECOGNITIONSCHAAKE COMPANY, AJ 128.83 1,087.22MUNICIPAL BLDG BUILDINGS & STRUCTURESSCHERER BROS. LUMBER CO. 1,087.22 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 21Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 350.00VARIANCESZONING/SUBDIVISIONSCHMITZ, THOMAS 350.00 1,320.00IT G & A EQUIPMENT MTCE SERVICESENSUS METERING SYSTEMS 1,320.00 21.05NEIGHBORHOOD ASSOCIATION GRANT OTHER CONTRACTUAL SERVICESSHARE, JOHN 21.05 813.11PAINTINGOTHER IMPROVEMENT SUPPLIESSHERWIN-WILLIAMS CO 813.11 33.13GENERAL BUILDING MAINTENANCE GENERAL SUPPLIESSIGN PRODUCERS INC 33.13 1,801.87IRRIGATION MAINTENANCE OTHER CONTRACTUAL SERVICESSIGNATURE MECHANICAL INC 367.87PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 2,169.74 300.00PERFORMING ARTS OTHER CONTRACTUAL SERVICESSLP COMMUNITY BAND 300.00 1,050.00ATHLETIC CAMPS OTHER CONTRACTUAL SERVICESSLP TOWN TEAM 1,050.00 168.00INSPECTIONS G & A CERTIFICATE OF COMPLIANCESMITH, CRAIG 168.00 420.00SUPPORT SERVICES TRAININGSOUTH METRO PUBLIC SAFETY TRAI 420.00 2,787.14IT G & A DATACOMMUNICATIONSSPRINT 2,787.14 158.92BUILDING MAINTENANCE GENERAL SUPPLIESSPS COMPANIES INC 158.92 7,251.66PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICESSRF CONSULTING GROUP INC 7,251.66 164.66PARK AND RECREATION BALANCE SH INVENTORYST JOSEPH'S EQUIPMENT INC 164.66 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 22Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 3,850.00FINANCE G & A OTHER CONTRACTUAL SERVICESST LOUIS PARK HOUSING AUTHORIT 3,850.00 3,000.00EXPLORERSOPERATIONAL SUPPLIESST LOUIS PARK POLICE EXPLORERS 3,000.00 2,235.92PARK AND RECREATION BALANCE SH INVENTORYSTANDARD TRUCK & AUTO 2,235.92 1,200.00PERFORMING ARTS OTHER CONTRACTUAL SERVICESSTEINMAN, KEVIN 1,200.00 187.32ACTIVE COMMUNITY PLANNING GENERAL PROFESSIONAL SERVICESSTITCHIN POST 522.30SPECIAL EVENTS OPERATIONAL SUPPLIES 442.99SUMMER PLAYGROUNDS OPERATIONAL SUPPLIES 31.68JR LEADERS OPERATIONAL SUPPLIES 337.43T-BALL/BASEBALL OPERATIONAL SUPPLIES 504.25SOCCEROPERATIONAL SUPPLIES 318.94LIFEGUARDINGOPERATIONAL SUPPLIES 30.00POOL MONITORS OPERATIONAL SUPPLIES 462.74CONCESSIONSOPERATIONAL SUPPLIES 2,837.65 138.87POLICE G & A POLICE EQUIPMENTSTREICHER'S 138.87 231.98GENERAL REPAIR EQUIPMENT MTCE SERVICESUBURBAN CHEVROLET 231.98 250.25ADMINISTRATION G & A LEGAL NOTICESSUN NEWSPAPERS 76.26ROUTINE MAINTENANCE LEGAL NOTICES 472.00SOLID WASTE G&A ADVERTISING 38.14STORM WATER UTILITY G&A LEGAL NOTICES 836.65 10,900.00SUNSET RIDGE OTHER CONTRACTUAL SERVICESSUNSET RIDGE CONDOMINIUM ASSN 10,900.00 16.52PARK AND RECREATION BALANCE SH INVENTORYSUPERIOR FORD 16.52 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 23Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 800.00HOLIDAY PROGRAMS OTHER CONTRACTUAL SERVICESSWENSON, STEVEN 800.00 1,418.57BEAUTIFICATION/LANDSCAPE OTHER IMPROVEMENT SUPPLIESSYLVA CORPORATION INC 1,302.77WOLFE PARK AMPHITHEATER OTHER CONTRACTUAL SERVICES 2,721.34 109.59POLICE G & A TRAININGTARGET BANK 27.93DARE PROGRAM OPERATIONAL SUPPLIES 36.62NEIGHBORHOOD OUTREACH OPERATIONAL SUPPLIES 174.14 750.00SPECIAL PROGRAMS OTHER CONTRACTUAL SERVICESTEENS ALONE 750.00 500.00NEIGHBORHOOD PUBLIC ART OTHER CONTRACTUAL SERVICESTENNEN, DENISE 500.00 54.71GENERAL CUSTODIAL DUTIES GENERAL SUPPLIESTERMINIX INT 97.00BUILDING MAINTENANCE BUILDING MTCE SERVICE 151.71 45.26ADMINISTRATION G & A LONG TERM DISABILITYTHE HARTFORD - PRIORITY ACCOUN 53.29HUMAN RESOURCES LONG TERM DISABILITY 15.84COMM & MARKETING G & A LONG TERM DISABILITY 41.70IT G & A LONG TERM DISABILITY 19.98ASSESSING G & A LONG TERM DISABILITY 50.28FINANCE G & A LONG TERM DISABILITY 112.56COMM DEV G & A LONG TERM DISABILITY 17.56FACILITIES MCTE G & A LONG TERM DISABILITY 121.05POLICE G & A LONG TERM DISABILITY 76.83OPERATIONSLONG TERM DISABILITY 57.81INSPECTIONS G & A LONG TERM DISABILITY 43.61PUBLIC WORKS G & A LONG TERM DISABILITY 56.83ENGINEERING G & A LONG TERM DISABILITY 20.48PUBLIC WORKS OPS G & A LONG TERM DISABILITY 68.74ORGANIZED REC G & A LONG TERM DISABILITY 20.48PARK MAINTENANCE G & A LONG TERM DISABILITY 17.08ENVIRONMENTAL G & A LONG TERM DISABILITY 17.08WESTWOOD G & A LONG TERM DISABILITY 18.05REC CENTER/AQUATIC PARK SAL LONG TERM DISABILITY 17.56VEHICLE MAINTENANCE G&A LONG TERM DISABILITY 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 24Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 16.59HOUSING REHAB G & A LONG TERM DISABILITY 20.48WATER UTILITY G&A LONG TERM DISABILITY 1,865.49EMPLOYEE FLEX SPEND G&A LONG TERM DISABILITY 2,794.63 23,556.22CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDITHOMAS & SONS CONST INC 23,556.22 479.63ADMINISTRATION G & A OTHER CONTRACTUAL SERVICESTIMESAVER OFF SITE SECRETARIAL 479.63 3,150.00PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICESTOWN & COUNTRY FENCE INC 3,150.00 67.09WATER UTILITY G&A GENERAL CUSTOMERSTRADEMARK TITLE 67.09 482.53GENERAL REPAIR EQUIPMENT MTCE SERVICETRANSMISSION SHOP INC 482.53 200.00SOFTBALLOTHER CONTRACTUAL SERVICESTRAUTMANN, JOHN 200.00 600.00TREE REPLACEMENT TREE REPLACEMENTTREE TRUST 413.41UNINSURED LOSS G&A UNINSURED LOSS 1,013.41 6,580.00WATER UTILITY G&A BUILDING MTCE SERVICETREMCO WEATHERPROOFING TECH IN 6,580.00 38.66PARK AND RECREATION BALANCE SH INVENTORYTRI STATE BOBCAT 38.66 273.56GROUNDS MTCE GENERAL SUPPLIESTRUGREEN - MTKA 5640 123.37GROUNDS MTCE LANDSCAPING MATERIALS 396.93 125.00BUILDING MAINTENANCE BUILDING MTCE SERVICEUNDESSER, TIM 125.00 53.92OPERATIONSOPERATIONAL SUPPLIESUNIFORMS UNLIMITED (FIRE) 53.92 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 25Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 1,095.36POLICE G & A OPERATIONAL SUPPLIESUNIFORMS UNLIMITED (PD) 80.00SUPPORT SERVICES OPERATIONAL SUPPLIES 982.25SUPERVISORYOPERATIONAL SUPPLIES 105.95COMMUNITY SERVICE OFFICER OPERATIONAL SUPPLIES 2,263.56 211.00EMPLOYEE FLEXIBLE SPENDING B/S UNITED WAYUNITED WAY OF MINNEAPOLIS AREA 211.00 1,742.06TREE DISEASE PRIVATE CLEANING/WASTE REMOVAL SERVICEUPPER CUT TREE SERVICE 1,742.06 122.78POLICE G & A TELEPHONEUSA MOBILITY WIRELESS INC 31.13WATER UTILITY G&A TELEPHONE 153.91 27.01SEWER UTILITY G&A GENERAL SUPPLIESVALLEY NATIONAL GASES WV LLC 27.01 183.00ENVIRONMENTAL G & A MILEAGE-PERSONAL CARVAUGHAN, JIM 183.00 1,280.27VOICE SYSTEM MTCE TELEPHONEVERIZON WIRELESS 73.48COMMUNICATIONS/GV REIMBURSEABL TELEPHONE 1,353.75 67.97ENGINEERING G & A OPERATIONAL SUPPLIESVIKING INDUSTRIAL CTR 966.98WATER UTILITY G&A OPERATIONAL SUPPLIES 1,034.95 388.17RELAMPINGOTHER IMPROVEMENT SUPPLIESVOSS LIGHTING 388.17 205.94GRANTSOTHER IMPROVEMENT SUPPLIESWASTE MANAGEMENT 2,613.03SEWER UTILITY G&A OTHER CONTRACTUAL SERVICES 2,818.97 2,459.27SOLID WASTE COLLECTIONS MOTOR FUELSWASTE MANAGEMENT OF WI-MN 57,151.06SOLID WASTE COLLECTIONS GARBAGE/REFUSE SERVICE 23,825.10SOLID WASTE COLLECTIONS YARD WASTE SERVICE 28,104.37SOLID WASTE DISPOSAL GARBAGE/REFUSE SERVICE 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 26Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 13,882.98SOLID WASTE DISPOSAL YARD WASTE SERVICE 125,422.78 824.00PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICESWASTE TECHNOLOGY INC 824.00 440.00WATER UTILITY G&A OTHER IMPROVEMENT SERVICEWATER CONSERVATION SERVICE INC 440.00 4,874.21CONCESSIONSCONCESSION SUPPLIESWATSON CO INC 4,874.21 109.87GENERAL REPAIR GENERAL SUPPLIESWAYTEK 109.87 75.00SOFTBALLOTHER CONTRACTUAL SERVICESWEGSCHEID, ROB 75.00 175.00PUBLIC WORKS G & A MILEAGE-PERSONAL CARWHITE, PERRY 175.00 858.20MUNICIPAL BLDG RENTAL BUILDINGSWILLIAMS SCOTSMAN INC 858.20 9.93WATER UTILITY G&A GENERAL CUSTOMERSWILLIAMS, DALLAS 9.93 513.74ORGANIZED REC G & A GENERAL SUPPLIESWRAP CITY GRAPHICS 846.24AQUATIC PARK BUDGET GENERAL SUPPLIES 1,359.98 11,373.65FACILITY OPERATIONS ELECTRIC SERVICEXCEL ENERGY 20.91OPERATIONSELECTRIC SERVICE 23,803.42PUBLIC WORKS OPS G & A ELECTRIC SERVICE 4,017.44PARK MAINTENANCE G & A ELECTRIC SERVICE 133.15PARK BUILDING MAINTENANCE ELECTRIC SERVICE 443.14WESTWOOD G & A ELECTRIC SERVICE 14,624.89ENTERPRISE G & A ELECTRIC SERVICE 606.16WATER UTILITY G&A ELECTRIC SERVICE 12.61OPERATIONSELECTRIC SERVICE 73.78OPERATIONSELECTRIC SERVICE 55,109.15 6/15/2010CITY OF ST LOUIS PARK 15:17:16R55CKSUM LOG23000VO 27Page -Council Check Summary 6/18/2010 -6/1/2010 Vendor AmountBusiness Unit Object 631.44PATCHING-PERMANENT SMALL TOOLSZACKS INC 631.44 396.70AQUATIC PARK MAINTENANCE GENERAL SUPPLIESZEE MEDICAL SERVICE 396.70 21.36WATER UTILITY G&A GENERAL CUSTOMERSZINDA, DAWN 21.36 319.68ORGANIZED REC G & A ADVERTISINGZIP PRINTING 99.29PARK MAINTENANCE G & A GENERAL SUPPLIES 344.26AQUATIC PARK BUDGET PRINTING & PUBLISHING 99.28VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 862.51 12.56WATER UTILITY G&A GENERAL CUSTOMERSZOCCHI, MICHAEL 12.56 Report Totals 2,055,566.82 Meeting Date: June 21, 2010 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: Sale and Issuance of Educational Facility Revenue Notes for the Groves Academy Project - Series 2010. RECOMMENDED ACTION: Motion to adopt Final Resolution “Authorizing the Issuance and Sale of Educational Facility Revenue Bonds (Groves Academy Project), Series 2010 in the Original Aggregate Principal Amount of $4,590,000; Approving the Form of and Authorizing the Execution and Delivery of the Bonds and Certain Related Documents; And Providing for the Security, Rights, and Remedies With Respect to the Bonds”. POLICY CONSIDERATION: Does the City Council wish to undertake the action as proposed? If so, the proposed action is consistent with the City’s approved policy for issuing private activity revenue bonds. BACKGROUND: On May 10, 2010, a report included in a Study Session packet stated Groves Academy is requesting that the City of St. Louis Park issue private activity revenue bonds for the purposes of refunding existing debt and financing the second and final phase of an expansion of their facilities. The aggregate principal amount of the Series 2010 bonds will not exceed an amount of approximately $4,590,000. Groves Academy has completed the necessary planning and zoning processes to allow them to expand their campus. They will also be financing internal improvements to their facilities to enhance their educational operations. On June 7, 2010, a public hearing was conducted, after which the City Council considered and adopted a “Resolution Giving Preliminary Approval to the Proposed Issuance of Revenue Bonds Under Minnesota Statutes, Sections 469.152 Through 469.165” for the Groves Academy Project - Series 2010”. The project was subsequently submitted and approved by the Minnesota Department of Employment and Economic Development (DEED) on June 15th, with the next step being consideration of the final resolution by the City Council on June 21, 2010. If adopted, this would then allow the bonds to be issued on a date agreed upon by the parties. The final resolution authorizes the issuance of the bonds through Wells Fargo Securities, LLC, who is operating as the placement agent for this transaction. City Council Meeting of June 21, 2010 (Item No. 8a) Page 2 Subject: Groves Academy Private Activity Revenue Bond Award FINANCIAL OR BUDGET CONSIDERATION: Groves Academy has provided the City with a new application, which is on file in the City Clerk’s office, along with the required fee of $2,500 in accordance with our policy. These bonds are not obligations of the city in any respect, but rather are payable solely from revenues of the Groves Academy. They will also pay a fee of 1/8th of one percent in two semi-annual payments to the City on based on the amount of bonds outstanding each year. These monies will be deposited in the City’s Housing Rehabilitation fund. VISION CONSIDERATION: Not Applicable. Attachments: Final Resolution – Groves Academy – Series 2010 Groves Academy – DEED Application – Series 2010 Prepared by: Brian A. Swanson, Controller Approved by: Tom Harmening, City Manager City Council Meeting of June 21, 2010 (Item No. 8a) Page 3 Subject: Groves Academy Private Activity Revenue Bond Award RESOLUTION NO. 10-___ AUTHORIZING THE ISSUANCE AND SALE OF EDUCATIONAL FACILITY REVENUE BONDS (GROVES ACADEMY PROJECT), SERIES 2010, IN THE ORIGINAL AGGREGATE PRINCIPAL AMOUNT OF $4,590,000; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE BONDS AND CERTAIN RELATED DOCUMENTS; AND PROVIDING FOR THE SECURITY, RIGHTS, AND REMEDIES WITH RESPECT TO THE BONDS WHEREAS, the City of St. Louis Park, Minnesota (the “City”), is a home rule city and political subdivision duly organized and existing under its Charter and the Constitution and laws of the State of Minnesota; and WHEREAS, pursuant to the Constitution and laws of the State of Minnesota, particularly Minnesota Statutes, Sections 469.152-469-165, as amended (the “Act”), the City is authorized to carry out the public purposes described therein and contemplated thereby by issuing its revenue bonds or other obligations to make a loan to finance or refinance a revenue producing enterprise, including the financing of the costs of the construction of an expansion to and remodeling of an existing educational facility; and WHEREAS, the City received a request from Groves Academy, a Minnesota nonprofit corporation (the “Borrower”), that the City issue its Educational Facility Revenue Bonds (Groves Academy Project), Series 2010 (the “Bonds), in an original, aggregate principal amount not to exceed $4,590,000, and loan the proceeds derived from the sale of the Bonds to the Borrower; and WHEREAS, the proceeds of the loan are proposed to be applied by the Borrower to (i) the redemption and prepayment of the outstanding principal amount of the Educational Facility Revenue Notes (Groves Academy Project), Series 2009 (the “Notes”), issued by the City in the original aggregate principal amount of $3,500,000, to finance the first phase of the renovation, expansion, and improvement of its independent co-educational day school located at 3200 Highway 100 South in the City (the “Facility”); (ii) finance the second phase of the renovation, expansion, and improvement of the Facility (the “Project”); and (ii) pay a portion of the costs of issuance of the Bonds and other related expenses of the Borrower; and WHEREAS, the City has prepared an Application to the Minnesota Department of Employment and Economic Development for approval of the Project pursuant to the requirements of Section 469.154 of the Act; and City Council Meeting of June 21, 2010 (Item No. 8a) Page 4 Subject: Groves Academy Private Activity Revenue Bond Award WHEREAS, a notice of a public hearing (in which a general, functional description of the Project was provided, as well as the maximum aggregate face amount of the obligations to be issued with respect to the Project, the identity of the initial owner, operator, or manager of the Project, and the location of the Project by street address) was published in a newspaper circulating generally in the City at least fifteen (15) days before the regularly-scheduled meeting of the City Council of the City on June 7, 2010; and WHEREAS, on June 7, 2010, the City Council conducted a public hearing at which a reasonable opportunity was provided for interested individuals to express their views, both orally and in writing, on the proposed issuance of the Bonds, and the location and nature of the Project; and WHEREAS, Wells Fargo Securities, LLC (the “Lender”) has agreed to purchase the Bonds in a manner consistent with the policies of the City relating to the issuance and sale of non-rated conduit revenue bonds; and WHEREAS, the proceeds derived from the sale of the Bonds are proposed to be loaned to the Borrower under the terms of a Loan Agreement, dated on or after June 1, 2010 (the “Loan Agreement”), between the City and the Borrower, and applied by the Borrower, together with other funds of the Borrower, to redeem and prepay the Notes, to finance the Project, and to pay certain costs of issuing the Bonds; and WHEREAS, the loan repayments required to be made by the Borrower under the terms of the Loan Agreement will be assigned to the Lenders under the terms of an Assignment of Loan Agreement, dated on or after June 1, 2010 (the “Assignment”), between the City, the Borrower, and the Lender; and WHEREAS, the obligations of the Borrower under the terms of the Loan Agreement will be disbursed by the Lender to the Borrower pursuant to the terms of an Escrow and Disbursing Agreement, dated on or after June 1, 2010 (the “Disbursing Agreement”), between the Borrower and the Lender, and the obligations of the Borrower under the terms of the Loan Agreement and the Assignment will be secured by a Combination Mortgage, Security Agreement, and Fixture Financing Statement, dated on or after June 1, 2010 (the “Mortgage”), from the Borrower in favor of the Lender; and WHEREAS, the Bonds and the interest on the Notes: (i) shall not constitute general or moral obligations of the City and shall be payable solely from the revenues pledged therefor; (ii) shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; (iii) shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers; and (iv) shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than the City’s interest in the Project and the Loan Agreement. City Council Meeting of June 21, 2010 (Item No. 8a) Page 5 Subject: Groves Academy Private Activity Revenue Bond Award NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, MINNESOTA, AS FOLLOWS: 1. For the purpose of redeeming and prepaying the Notes, financing the Project, and paying a portion of the costs of issuing the Bonds, there is hereby authorized the issuance of the Bonds in the original aggregate principal amount not to exceed $4,590,000. The Bonds shall bear interest at such rates, shall be in such denomination, shall be numbered, shall be dated, shall mature, shall be subject to redemption prior to maturity, shall be in such form, and shall have such other details and provisions as are prescribed by the form of the Bonds on file with the City on the date hereof. The Bonds shall be special limited obligations of the City payable solely from revenues of the Facility, in the manner provided in this resolution and the Loan Agreement. The Bonds do not constitute general or moral obligations of the Issuer, or a pledge of the faith and credit or any taxing power of the City, the State of Minnesota, or any political subdivision thereof. The City hereby authorizes and directs the Mayor of the City (the “Mayor”) and the City Manager of the City (the “City Manager”) to execute the Bonds, and to deliver the Bonds to the Lender, and hereby authorizes and directs the execution of the Bonds in accordance with its terms and the terms of this resolution. The Mayor is hereby authorized to approve the interest rate or rates on the Bonds, approve changes to the maturity schedules, optional and mandatory redemption terms, mandatory sinking fund payment schedules, and other terms and provisions of the Bonds; provided that the maturity date for the Bonds shall not be later than the date set forth in the form of the Bonds on file with the City on the date hereof. The Bonds shall contain a recital that they are issued pursuant to the Act, and such recital shall be conclusive evidence of the validity of the Bonds and the regularity of the issuance thereof, and that all acts, conditions, and things required by the laws of the State of Minnesota relating to the adoption of this resolution, to the issuance of the Bonds, and to the execution of the aforementioned documents have happened, exist, and have been performed as so required by law. 2. The proceeds derived from the sale of the Bonds shall be loaned by the City to the Borrower pursuant to the Loan Agreement and shall be disbursed by the Lender to the Borrower pursuant to the terms of the Disbursing Agreement. The loan repayments to be made by the Borrower under the Loan Agreement are to be fixed so as to produce revenues sufficient to pay the principal of, premium, if any, and interest on the Bonds when due. The loan made pursuant to the Loan Agreement (the “Loan”), and the City’s rights to the Loan repayments and certain other rights under the Loan Agreement shall be assigned to the Lender as security for payment of the Bonds pursuant to the terms of the Assignment. The Bonds, the Loan Agreement, and the Assignment shall be substantially in the forms on file with the City on the date hereof, and are hereby approved, with such necessary and appropriate variations, omissions, and insertions as do not materially change the substance thereof, or as the Mayor and City Manager, in their discretion, shall determine, and the execution and delivery thereof by the Mayor and City Manager shall be conclusive evidence of such determination. The Bonds, the Loan Agreement, and the Assignment are directed to be executed in the name and on behalf of the City by the Mayor and the City Manager. City Council Meeting of June 21, 2010 (Item No. 8a) Page 6 Subject: Groves Academy Private Activity Revenue Bond Award 3. The offer of the Lender to purchase the Bonds at a price of par is hereby accepted. Upon approval by the Minnesota Department of Employment and Economic Development, the Mayor and the City Manager are authorized and directed to prepare and execute the Bonds and deliver the Bonds to the Lender. 4. The City has not participated in the preparation of any disclosure documents relating to the offer and sale of the Bonds and has made no independent investigation with respect to the information contained in any such disclosure documents. The City assumes no responsibility for the sufficiency, accuracy, or completeness of any information set forth in any such disclosure documents. 5. The Mayor, the City Manager, and other officers of the City are authorized and directed to prepare and furnish to the Lender and to Bond Counsel certified copies of all proceedings and records of the City relating to the Bonds, and such other affidavits and certificates as may be required to show the facts relating to the legality of the Bonds as such facts appear from the books and records in the officers’ custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. 6. The approval hereby given to the various documents referred to above includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom, and additions thereto as may be necessary and appropriate and approved by the officials authorized herein to execute said documents, which approval shall be conclusively evidenced by the execution thereof. The Mayor, the City Manager, and other officers of the City are hereby authorized to execute and deliver, on behalf of the City, all other certificates, instruments, and other written documents that may be requested by Bond Counsel, the Lender, or other persons or entities in conjunction with the issuance of the Bonds and the expenditure of the proceeds of the Bonds. Without imposing any limitations on the scope of the preceding sentence, such officers are specifically authorized to execute and deliver a certificate relating to federal tax matters including matters relating to arbitrage and arbitrage rebate, a receipt for the proceeds derived from the sale of the Bonds, a general certificate of the City, and an Information Return for Tax-Exempt Private Activity Bonds Issues, Form 8038 (Rev. September 2007). 7. All covenants, stipulations, obligations, representations, and agreements of the City contained in this resolution or contained in the Loan Agreement, Assignment, or other documents referred to above shall be deemed to be the covenants, stipulations, obligations, representatives, and agreements of the City to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations, representations, and agreements shall be binding upon the City. Except as otherwise provided in this resolution, all rights, powers, and privileges conferred, and duties and liabilities imposed, upon the City by the provisions of this resolution or of the respective Loan Agreement, Assignment, or other documents referred to above shall be exercised or performed by the City, or by such officers, board, body, or agency as may be required or authorized by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation, representation, or agreement herein contained or contained in the Loan Agreement, Assignment, or other documents City Council Meeting of June 21, 2010 (Item No. 8a) Page 7 Subject: Groves Academy Private Activity Revenue Bond Award referred to above shall be deemed to be a covenant, stipulation, obligation, representation, or agreement of any elected official, officer, agent, or employee of the City in that person’s individual capacity, and neither the members of the City Council nor any officer or employee executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. 8. Except as herein otherwise expressly provided, nothing in this resolution or in the Loan Agreement, expressed or implied, is intended or shall be construed to confer upon any person, firm, or corporation other than the City and the registered and beneficial owners of the Bonds, any right, remedy, or claim, legal or equitable, under and by reason of this resolution or any provision hereof or of the Loan Agreement or any provision thereof; this resolution, the Loan Agreement and all of their provisions being intended to be, and being for the sole and exclusive benefit of the City and the registered and beneficial owners of the Bonds issued under the provisions of this resolution and the Loan Agreement, and the Borrower to the extent expressly provided in the Loan Agreement. 9. In case any one or more of the provisions of this resolution, or of the documents mentioned herein, or of the Bonds issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution, or of the aforementioned documents, or of the Bonds, but this resolution, the aforementioned documents, and the Bonds shall be construed and endorsed as if such illegal or invalid provisions had not been contained therein. 10. All acts, conditions, and things required by the laws of the State of Minnesota, relating to the adoption of this resolution, to the issuance of the Bonds, and to the execution of the Loan Agreement, the Assignment, and the other documents referred to above to happen, exist, and be performed precedent to and in the enactment of this resolution, and precedent to the issuance of the Bonds, and precedent to the execution of the Loan Agreement, the Assignment, and the other documents referred to above have happened, exist, and have been performed as so required by law. 11. The members of the City Council, officers of the City, and attorneys and other agents or employees of the City are hereby authorized to do all acts and things required by them by or in connection with this resolution and the Loan Agreement and the other documents referred to above for the full, punctual, and complete performance of all the terms, covenants, and agreements contained in the Bonds, the Loan Agreement, the Assignment, and the other documents referred to above, and this resolution. 12. If for any reason the Mayor is unable to execute and deliver those documents referred to in this resolution, any other member of the City Council, or any officer of the City duly delegated to act on behalf of the Mayor, may execute and deliver such documents with the same force and effect as if such documents were executed by the Mayor. If for any reason the City Manager is unable to execute and deliver the documents referred to in this resolution, such documents may be executed and delivered by any member of the City Council, any officer of the City duly delegated to act on behalf of the City Manager, with the same force and effect as if such documents were executed and delivered by the City Manager. City Council Meeting of June 21, 2010 (Item No. 8a) Page 8 Subject: Groves Academy Private Activity Revenue Bond Award 13. The Bonds are to be designated as a “qualified tax-exempt obligations” by the Borrower for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, and such designation by the Borrower is approved by the City. 14. This resolution shall be in full force and effect from and after its passage. (The remainder of this page is intentionally left blank.) City Council Meeting of June 21, 2010 (Item No. 8a) Page 9 Subject: Groves Academy Private Activity Revenue Bond Award Adopted by the City Council of the City of St. Louis Park, Minnesota, on June 21, 2010. Jeff Jacobs, Mayor Tom Harmening, City Manager City Council Meeting of June 21, 2010 (Item No. 8a) Page 10 Subject: Groves Academy Private Activity Revenue Bond Award SA140-104 (JU) 370196v.2 STATE OF MINNESOTA MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT BUSINESS AND COMMUNITY DEVELOPMENT DIVISION APPLICATION FOR APPROVAL OF INDUSTRIAL DEVELOPMENT BOND PROJECT PURSUANT TO MINNESOTA STATUTES, SECTION 469.152 THROUGH 469.165 (Please submit this form in duplicate - all supporting data in single copy only) Date: June 8, 2010 The governing body of the City of St. Louis Park, a home rule city and political subdivision under the laws of the State of Minnesota (the “Issuer”), hereby applies to the Minnesota Department of Employment and Economic Development (the “Department”) for approval of a proposed Industrial Development Revenue Bond issue as required by Minnesota Statutes, Sections 469.152 through 469.165. Address of Issuer: City of St. Louis Park, Minnesota 5005 Minnetonka Boulevard St. Louis Park, Minnesota 55416-2216 Attn: Brian Swanson, Controller Telephone: 952-924-2683 We have entered into preliminary discussions with: Firm: Groves Academy 3200 Highway 100 South St. Louis Park, Minnesota 55416 Attorney: Trudy Halla Briggs & Morgan, Professional Association 2200 IDS Center 80 South Eighth Street Minneapolis, Minnesota 55402 Name of Project: Groves Academy Project This firm is engaged primarily in (nature of business): City Council Meeting of June 21, 2010 (Item No. 8a) Page 11 Subject: Groves Academy Private Activity Revenue Bond Award The Firm is a private, independent, co-educational day school for students in grades 1 through 12 who have learning disabilities or attention disorders The proceeds from the sale of the Educational Facility Revenue Bonds (Groves Academy Project), Series 2010 (the “Bonds”) of the Issuer will be used to finance the following (describe the project): (i) the renovation, expansion, and improvement of the educational facilities of the Firm located at 3200 Highway 100 South in the City of St. Louis Park; and (ii) the payment of a portion of the costs of issuing the Bonds. Address of Project: 3200 Highway 100 South, St. Louis Park, Minnesota City Council Meeting of June 21, 2010 (Item No. 8a) Page 12 Subject: Groves Academy Private Activity Revenue Bond Award Proceeds from the sale of the Bonds of $ 4,590,000 and a company equity contribution in the approximate amount of $_-0-___ (total bond and equity amount is approximately $ _-0-__ ) will be applied toward payment of costs now estimated as follows: Expenditure Amount Acquisition $ 0 Refunding of Prior Obligations 2,500,000 Construction/Renovation 2,000,000 Financing Costs 90,000 Total $4,590,000 *Approximately $2,090,000 will be spend on new construction and financing costs The Project is estimated to be started on or about July 6, 2010 and will be complete on or about October 31, 2010 _. When completed, there will be approximately _-0-__ new jobs created by the Project at an annual payroll of approximately $ __-0-__ , based upon currently prevailing wages. There are 58_ existing jobs provided by the business. There will be _150_ jobs created by construction of the project (average of _35_ workers on site every week). Number of hours _1,400 hours/week. Average wage level $_32.00/hour. Repayment of the proposed Notes will be amortized over a period of 10 years. The following exhibits are furnished with this application and are incorporated herein by reference: 1. An opinion of bond counsel that the proposal constitutes a “project” under Minnesota Statutes, Section 469.153, Subdivision 2. 2. A copy of the resolution by the governing body of the Issuer giving approval for the issuance of the Notes and stating that the Project, except for a project under Minnesota Statutes, Section 469.153, Subdivision 2(g) or (j) would not be undertaken but for the availability of Industrial Development Revenue Bond financing. 3. A comprehensive statement by the Issuer indicating how the Project satisfies the public purpose and policies of Minnesota Statutes, Sections 469.152 through 469.165. 4. A letter of intent to purchase the Notes or a letter confirming the feasibility of the Project from a financial standpoint. 5. A statement signed by the principal representative of the Issuer to the effect that upon entering into the revenue agreement, the information required by Minnesota Statutes, Section 469.154, Subdivision 5 will be submitted to the Department (not applicable to projects under Minnesota Statutes, Section 469.153, Subdivision 2(g) or (j)). City Council Meeting of June 21, 2010 (Item No. 8a) Page 13 Subject: Groves Academy Private Activity Revenue Bond Award 6. A statement signed by the principal representative of the Issuer that the Project does not include any property to be sold or affixed to or consumed in the production of property for sale, and does not include any housing facility to be rented or used as a permanent residence. 7. A statement signed by a representative of the Issuer that a public hearing was conducted pursuant to Minnesota Statutes, Section 469.154, Subdivision 4. The statement shall include the date, time and place of the meeting and certify that a draft copy of this application with all attachments was available for public inspection and that all interested parties were afforded an opportunity to express their views. 8. Copies of notice(s) as published which indicate the date(s) of publication and the newspaper(s) in which the notice(s) were published. 9. A plan for compliance with an employment preference of economically disadvantaged or unemployed individuals. (See Minnesota Statutes, Section 469.154, Subdivision 7). (The remainder of this page is intentionally left blank.) Meeting of June 21, 2010 (Item No. 8a) Page 14 Subject: Groves Academy Private Activity Revenue Bond Award We, the undersigned, are the duly elected representatives of the City of St. Louis Park and solicit your approval of this project at your earliest convenience so that we may carry it to a final conclusion. Signed by: (Principal Officers or Representatives of Issuing Authority; type or print official’s name on the line to the left of the signature line. Thank you.) Jeff Jacobs Mayor Signature Mailing Address: City of St. Louis Park, Minnesota 5005 Minnetonka Boulevard St. Louis Park, Minnesota 55416-2216 Tom Harmening City Manager Signature Mailing Address: City of St. Louis Park, Minnesota 5005 Minnetonka Boulevard St. Louis Park, Minnesota 55416-2216 This approval shall not deemed to be an approval by the Department of Employment and Economic Development or of the State of Minnesota of the feasibility of the project or the terms of the revenue agreement to be executed or the revenue note to be issued therefor. Authorized Signature, Minnesota Department of Date of Approval Employment and Economic Development Please return to: Minnesota Department of Employment and Economic Development Mark Lofthus Business and Community Development Director 1st National Bank Building 332 Minnesota Street, Suite E200 St. Paul, Minnesota 55101-1351 Phone: 651-259-7432 Fax: 651-296-5287