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HomeMy WebLinkAbout2012-04-11 CC Packetr -a teroiffe z,taxz0ir, ix CITY OF CENTERVILLE COUNCIL MEETING & WORK SESSION AGENDA CITY OF CENTERVILLE BOARD OF REVIEW & EQUALIZATION (6 :30 P.M.) (Mr. Ken Tolzmann) Wednesday, April 11, 2012 6:30 p.m. or shortly thereafter OPEN FORUM 6:30 p.m.: An opportunity for members of the public to address the City Council on items not on the current agenda. Items requiring Council action may be deferred to staff or Boards and Commissions for research and future Council Agendas if appropriate. You will be limited to two (2) minutes and we ask that you conduct yourself in a professional, courteous manner, and refrain from the use of profanity. Failure to abide by this policy may result in the loss of your privilege to speak. Persons wishing to speak will be required to complete a sign -up sheet and give it to the Mayor or a Staff person by 6:15 p.m. COUNCIL MEETING (Following Board of Review & Equalization) h CALL TO ORDER 1. Roll Call II. PUBLIC HEARING(S) 1TI. APPROVAL OF AGENDA IV. APPROVAL OF MINUTES 1. March 28, 2012 City Council Meeting Minutes (Pages 1 -3) 2. March 28, 2012 City Council Work Session Meeting Minutes (Page 4) V. CONSENT AGENDA 1. City of Centerville March 29, 2012 through April 11, 2012 Claims (Check #27151 - 27181) (Page 5 -6) 2. Centennial Fire District Claims through March 27, 2012 (Check #5255 Payroll & Check #5256 -5286) (Page 7) 3. Encroachment Agreement — Fence, 7316 Brian Drive (Page 8) 4. Parks & Recreation Committee Recommendation to Approve: (Page 9) a. Centennial Soccer Club's Request to Utilize Laurie LaMotte Memorial Park Soccer Fields from April 1 to July 1, 2012 Monday — Thursday from 4:00 — 9:00 p.m. b. Ms. Amy Anderson Request to Utilize Hidden Spring Park for a Wedding on June 16, 2012 from 3:30 — 5:30 p.m. C. Cub Scout Pack 432 Rocket Launch Request to Utilize Laurie LaMotte Memorial Park .Tune 2 with Alternative Date of June 23, 2012 from 9:00 — 3:00 p.m. d. Expend $30 for the Purchase of Ice Cream for The Jam on July 27, 2012 @ Hidden Spring Park VI. AWARDSIPRESENTATIONS !APPEARANCES 1. Mr. Steve McDonald, ABDO, Eick & Meyers — 2011 Audit Presentation 2. Mr. Wayne LeBlanc, Report on Blue Herons (Pages 10 -13) VII. OLD BUSINESS VIII. NEW BUSINESS 1. Approval of the 2011 Audit 2. Consider Purchasing Surplus County Property a. 7261 Main Street (Pages 14 -15) b. 1798 Main Street (Pages 16 -17) 3. Planning & Zoning Commission Recommendation to Amend City Code, Chapter 156.030, B -1 Zoning District, Conditional Use (Pages 18 -24) IX. ANNOUNCEMENTS/UPDATES 1. City Administrator Larson a. Colored Concrete Study — MNDot 2. Joint Work Session with P & Z and P & R on May 9 @ 7:00 p.m. t X. CLOSED EXECUTIVE SESSION (Unless Otherwise Noted) 1. Performance Review of City Administrator Larson XI. RECONVENE TO REGULARLY SCHEDULED MEETING 1. Performance Review of City Administrator Larson XII. ADJOURNMENT * *REMINDERS ** Parks & Recreation Committee Annual Park Clean Up — April 21, 2012 (Meet @ City Hall & Disburse from there at 8:30 a.m.) Planning & Zoning Commission Meeting — May 1, 2012, 6:30 p.m. Council Parks & Recreation Committee Meeting— May 2, 2012, 6:30 p.m. Council Chambers City Council Meeting — April 25, 2012, 6:30 p.m. Council Chambers City Council Meeting — May 9, 2012, 6:30 p.m. Council Chambers City of Centerville Board of Equalization Meeting Centerville, Minnesota April 11, 2012 M8 Streel, t ° enf raaf(, a}'. ^1 55tl4,h KenwMA To, SMU OwM rWle Qty.4ssessor City of Centerville - .A 1 . = k AssessmentCalendar .......................................................................................... ............................... 3 The2012 Assessment .......................................................................................... ..............................4 QuintileMap ........................................................................................................... ..............................5 Reassessment...................................................................................................... ............................... 6 MarketValue ......................................................................................................... ..............................6 Authority of the Local Board of Appeal and Equalization .................................... ..............................7 MarketValues ....................................................................................................... .............................10 2011 -2012 Market Value Comparison ................................................................ .............................11 Residential Appraisal System .............................................................................. .............................12 SalesStudies ........................................................................................................ .............................12 SalesStatistics Defined ....................................................................................... .............................13 Current Sales Study Statistics ............................................................................. .............................14 2012 Anoka County Ratio Study ......................................................................... .............................14 Residential Tax Changes Examined ................................................................... .............................15 2012 Real Estate Tax Information ....................................................................... .............................16 AppealsProcedure ............................................................................................... .............................17 SampleMarket Value Notice ............................................................................... .............................19 Sample Pay 2012 Property Tax Statement ........................................................ .............................20 Anoka County Final Pay 2012 Tax Rates ........................................................... .............................23 2 City of Centerville 2012 Assessment Calendar March 1 Final day to file for 1 b with Commissioner of Revenue January 2 2012 Market Values for Property Established February 1 Final Day to Deliver Assessment Records to County February 1 Final Day to File for an Exemption from Taxation March 1 Final day to file for 1 b with Commissioner of Revenue March 18 2012 Valuation Notices Mailed April 13 Local Board of Appeal and Equalization April 30 Final Day to File a Tax Court Petition for 2011 Assessment May 15 First Half Payable 2012 Taxes Due May 29 Final Date for Manufactured homes assessed as personal property to establish homestead May 31 State Board of Equalization June 11 County Board of Appeal and Equalization (6:00 PM) July 1 2012 Assessment Finalized July 1 Date by which taxable property becomes exempt August 15 Final Day to File for 2011 Property Tax Refund August 31 Final Day to Pay the First Half Manufactured Home Taxes September 1 2011 Abstract to the Department of Revenue October 15 Second Half Pay 2012 Taxes Due November 15 Anticipated Day to Mail pay 2013 Proposed Tax Notices December 1 Last Day to Establish Homestead for pay 2013 December 15 Final Day to File Homestead Application for pay 2013 3 City of Centerville The 2012 Assessment The 2012 assessment should be a reflection of the 2011 market conditions. Sales of property are constantly analyzed to chart the activity of the market place. The Assessing staff does not create value; they only measure its movement. Assessing property values equitably is part science, part judgment and part communication skill. Training as an assessor cannot tell us how to find the "perfect" value of a property, but it does help us consistently produce the same estimate of value for identical properties. That after all, is the working definition of equalization. As of January 2, 2012, there were 1,609 parcel /accounts in the City. That is up 12 parcels from 2011. This total includes: • 1,452 residential parcels • 95 non - taxable parcels • 79 commercial and industrial parcels • 2 apartment/nursing home /man. housing parcels • 0 manufactured home accounts • 1 personal property accounts • 0 railroad parcels • 8 agricultural parcels • 0 utility parcels Current state law mandates that all property must be re- assessed each year and physically reviewed once every five years. We also inspect all properties with new construction each year. During 2011 1 reviewed 302 existing residential & commercial properties. A map illustrating the areas we recently reviewed and those areas to be visited in the future is presented on the following page. 4 City of Centerville For the 2012 Assessment, all commerciaUndustrial & Residential townhomes were re- assessed in conformity with the mandatory 20% quintile revaluation of the State of Minnesota. With respect to the revaluation of Residential Townhomes, there are two major townhome developments in the City of Centerville, Willow Glen and Eagle Pass. Willow Glen saw the biggest change in market values from the 2011 assessment, with a 21% overall decline in market value estimates. This was a direct result of the impact of foreclosure sales observed in said common interest community. Upon completion of the reassessment, a 95% assessment ratio was observed in compliance with our goal of equalization amongst all properties in the City. Eagle Pass, also saw changes in market values from last years assessment. While not as significant as those observed in Willow Glen, Eagle Pass saw an overall decline of 11% over last years assessment. Upon completion of the reassessment, a 94% assessment ration was observed which again, is our goal in equalizing all property types in the City of Centerville. With respect to the commercial /industrial segment of the City, the primary focus was put on the confirmation of the physical characteristics of each parcel which is used in the valuation of each parcel. While there were minimal commercial /industrial sales in the City, Countywide there were 21 qualified arms length sales from which to extract trends and the creation of per sq. ft. rates used in the valuation of the City's commercial /industrial properties. With respect to the Pay 2014 assessment, lakeshore & Centerville downtown are scheduled to be reviewed. A final decision on the overall scope of the Pay 2014 assessment will be made upon completion of the Pay 2013 appeal period which ends mid -June 2012. 5 City of Centerville Reassessment State Statute reads: "All real property subject to taxation shall be listed and reassessed every year with reference to its value on January 2nd preceding the assessment." This has been done, and the owners of property in Centerville have been notified of any value change. Minnesota Statute 273.11 reads: "All property shall be valued at its market value." It further states that "In estimating and determining such value, the Assessor shall not adopt a lower or different standard of value because the same is to serve as a basis for taxation, nor shall the assessor adopt as a criterion of value the price for which such property would sell at auction or at a forced sale, or in the aggregate with all the property in the town or district, but the assessor shall value each article or description of property by itself, and at such sum or price as the assessor believes the same to be fairly worth in money." The Statute says all property shall be valued at market value, not may be valued at market value. This means that no factors other than market factors should affect the Assessor's value and the subsequent action by the Board of Equalization. Market Value Market value has been defined many different ways. One way used by many appraisers is the following: The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by any undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated: (2) both parties are well informed or well advised, and acting in what they consider their own best interests; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 6 City of Centerville Authority of the Local Board of Equalization Assessments of property are made to provide the means for the measuring of the relative share of each taxpayer in the meeting of the costs of local government. It is the duty of the Assessor to assess all real and personal property except that which is exempt or taxable under some special method of taxation. If the burden of local government is to be fairly and justly shared among the owners of all property of value, it is necessary that all taxable property be listed on the tax rolls and that all assessments be made accurately. Whenever any property that should be assessed is omitted from the tax rolls, an unfair burden falls upon the owners of all property that has been assessed. If any property is undervalued in relation to the other property on the assessment record, the owners of the other property are called upon automatically to assume part of the tax burden that should be borne by the undervalued property. Fairness and justice in property taxation demands both completeness and equality in assessment. Minnesota Statutes Section 274.01 provides that the council of each city shall be or appoint a Board of Appeal and Equalization. The charter of certain cities provides for the establishment of a Board of Equalization. The provisions of Section 274.01 and this regulation apply to all Boards of Appeal or Boards of Equalization. The 2003 Legislature enacted State Statute 274.014 which requires that there be at least one member at each meeting of a Local Board of Appeal and Equalization (beginning with the 2006 local boards) who has attended an appeals and equalization course developed or approved by the Commissioner of Revenue within the last four years. (The member must attend the course by no later than January 1, 2006.) Councilmembers Ben Fehrenbacher and Jeff Paar, have met this requirement for the City of Centerville. Section 274.01 states the county assessor shall fix a date for each Board of Appeal and Equalization to meet for the purpose of reviewing the assessment of property in its respective town or city. The county assessor is required to serve written notice to the clerk of each of such bodies on or before February 15th of each year. These meetings are required to be held between April 1 st and May 31 st; and the clerk of the Board of Appeal and Equalization is required to give published and posted notice at least ten days before the date set for the first meeting. The Board of Appeal and Equalization of any city, unless a longer period is approved by the Commissioner of Revenue must complete its work and adjourn within twenty days (20) from the time of convening specified in the notice of the clerk. No action taken subsequent to such date shall be valid A request for additional time in order to complete the work of the Board of Appeal and Equalization must be addressed to the Commissioner of Revenue in writing. The Commissioner's approval is necessary to legalize any procedure subsequent to the expiration of the twenty -day period. The Commissioner of Revenue will not, however, extend the time for local Boards of Appeal and FA City of Centerville Equalization to meet beyond the time when the County Board of Equalization meets, which is the final two weeks of June. The authority of the local Board extends over the individual assessments of real and personal property. The Board does not have the power to increase or decrease by percentage all of the assessments in the district of a given class of property. Changes in aggregate assessments by classes are made by the County Board of Equalization. Although the Local Board of Appeal and Equalization has the authority to increase or reduce individual assessments, the total of such adjustments must not reduce the aggregate assessment made by the Assessor by more than one percent of said aggregate assessment. If the total of such adjustments does lower the aggregate assessment made by the Assessor by more than one percent, none of the adjustments will be allowed. This limitation does not apply, however, to the correction of clerical errors or to the removal of duplicate assessments. The Local Board of Appeal and Equalization does not have the authority in any year to reopen former assessments on which taxes are due and payable. The Board considers only the assessments that are in process in the current year. Adjustment can be made only by the process of abatement or by legal action. In reviewing the individual assessments, the Board may find instances of undervaluation. Before the Board can raise the market value of property it must notify the owner. The law does not prescribe any particular form of notice except that the person whose property is to be increased in value must be notified of the intent of the Board to make the increase. The Local Board of Appeal and Equalization meetings assure a property owner an opportunity to contest any other matter relating to the taxability of their property. The Board is required to review the matter and make any corrections that it deems just. When a Local Board of Appeal and Equalization convenes, it is necessary that a majority of the members be in attendance in order that any valid action may be taken. The local assessor is required by law to be present with his /her assessment books and papers. He /she is required also to take part in the proceedings but has no vote. In addition to the local assessor, the county assessor or one of his /her assistants is required to attend. The Board should proceed immediately to review the assessments of property. The Board should ask the local assessor and county assessor to present any tables that have been prepared, making comparisons of the current assessments in the district. The county assessor is required to have maps and tables relating particularly to land values for the guidance of Boards of Appeal and Equalization. Comparisons should be presented of assessments of types of property with previous years and with other assessment districts in the same county. It is the primary duty of each Board of Appeal and Equalization to examine the assessment record to see that all taxable property in the assessment district has been properly placed upon the list and valued by the assessor. In case any property, either real or personal, has been omitted; the Board has the duty of making the assessment. The complaints and objections of persons who feel aggrieved with any assessments for the current year should be considered very carefully by the s City of Centerville Board. Such assessments must be reviewed in detail and the Board has the authority to make corrections it deems to be just. The Board may recess from day to day until all cases have been heard. If complaints are received after the adjournment of the Board of Appeal and Equalization they must be handled on the staff level; as a property owner cannot appear before a higher board unless he or she has first appeared at the lower board levels. Pursuant to Minnesota Statute 274.01: The Board may not make an individual market value adjustment or classification change that would benefit the property in cases where the owner or other person having control over the property will not permit the assessor to inspect the property and the interior of any buildings or structures. A non - resident may file written objections to his /her assessment with the county assessor prior to the meeting of the Board of Appeal and Equalization. Such objections must be presented to the Board for consideration while it is in session. Before adjourning, the Board of Appeal and Equalization should cause the record of the official proceedings to be prepared. The law requires that the proceedings be listed on a separate form which is appended to the assessment book. The assessments of omitted property must be listed in detail and all assessments that have been increased or decreased should be shown as prescribed in the form. After the proceedings have been completed, the record should be signed and dated by the members of the Board of Appeal and Equalization. It is the duty of the county assessor to enter changes by Boards of Appeal and Equalization in the assessment book of each district. The Local Board of Appeal and Equalization has the opportunity of making a great contribution to the equality of all assessments of property in a district. No other agency in the assessment process has the knowledge of the property within a district that is possessed jointly by the individual members of a Board of Appeal and Equalization. The County or State Board of Equalization cannot give the detailed attention to individual assessments that is possible in the session of the Local Board. The faithful performance of duty by the Local Board of Appeal and Equalization will make a direct contribution to the attainment of equality in meeting the costs of providing the essential services of local government. The 2012 assessment should be a reflection of the 2010/2011 market conditions. Sales of property are constantly analyzed to chart the activity of the market place. 9 City of Centerville Market Values After thorough studies of the sales in the market place are conducted, we establish the assessed value of all real property. During the 2010/2011 study period, we recorded 73 sales, of which we considered 16 to be "arms- length" sales. There were 34 bank/foreclosure sales in Centerville during 2010/2011. In accordance with the results of these sales studies, downward adjustments were made to all areas of the city with certain styles and grades of homes having larger decreases than others. This will more properly reflect current market trends. According to the Minneapolis Area Association of Realtors, the average home sales price in Centerville rose 4.3% between 2010 and 2011. This is an improvement from the 2.9% decline observed last year. This is a direct result of the increased demand for homes in the City. The 2011 assessment that is up for your review has a total unaudited assessed value of $310,675,681. It reflects an approximate valuation decrease of 6.2% compared to the 2011 assessment. This is an improvement from the 6% decline observed last year. Historical Changes in Taxable Market Value 2001 -2010 (Total does not include utility, exempt or forfeit) 10 Commercial & Year Apartment Residential Industrial Total % Chg 2010 $751,600 $323,922,600 $23,429,800 $348,104,000 -10.3% 2009 $776,500 $360,539,000 $26,724,100 $388,039,600 0.9% 2008 $762,400 $350,726,300 $31,861,800 $383,350,500 5.4% 2007 $748,100 $338,067,900 $25,063,100 $363,879,100 13.1% 2006 $689,500 $300,078,100 $20,888,200 $321,655,800 11.8% 2005 $638,900 $268,075,500 $19,047,800 $287,762,200 14.1% 2004 $578,200 $232,902,300 $16,972,700 $250,453,200 13.4% 2003 $532,400 $206,173,700 $14,180,800 $220,886,900 26.5% 2002 $388,800 $163,024,700 $11,198,300 $174,611,800 14.2% 2001 $378,500 $141,621,500 $10,949,500 $152,949,500 8.0% 10 City of Centerville 2010 -2011 Market Value Comparison City of Centerville Residential Appraisal System KA Per State Statute, each property must be physically inspected and individually appraised once every five years. For this individual appraisal, or in the event of an assessed value appeal, we use two standard appraisal methods to determine and verify the estimated market value of our residential properties: 1. First, an appraiser inspects each property to verify data. If we are unable to view the interior of a home on the first visit, a notice is left requesting a return telephone call from the owner to schedule this inspection. Interior inspections are necessary to confirm our data on the plans and specifications of new homes and to determine depreciation factors in older homes. To calculate the estimated market value from the property data we use a Computer 3. A comparative market analysis is used to verify these estimates. The properties used for these studies are those that most recently have sold and by computer analysis, are most comparable to the subject property taking into consideration construction quality, location, size, style, etc. The main point in doing a market analysis is to make sure that you are comparing "apples with apples ". This will make the comparable properties "equivalent to" the subject property and establish a probable sale price of the subject. These three steps give us the information to verify our assessed value or to adjust it if necessary. Sales Studies According to State Law, it is the assessor's job to appraise all real property at market value for property tax purposes. As a method of checks and balances, the Department of Revenue uses statistics and ratios relating to assessed market value and current sale prices to confirm that the law is upheld. Assessors use similar statistics and sales ratios to identify market trends in developing market values. 12 Assisted Mass Appraisal (CAMA) system based on a reconstruction less depreciation method of appraisal. The cost variables and m IM land schedules are developed through an o analysis of stratified sales within the city. This p method uses the "Principle of Substitution" and buyer have to to calculates what a would pay „ replace each home today less age dependent depreciation. 3. A comparative market analysis is used to verify these estimates. The properties used for these studies are those that most recently have sold and by computer analysis, are most comparable to the subject property taking into consideration construction quality, location, size, style, etc. The main point in doing a market analysis is to make sure that you are comparing "apples with apples ". This will make the comparable properties "equivalent to" the subject property and establish a probable sale price of the subject. These three steps give us the information to verify our assessed value or to adjust it if necessary. Sales Studies According to State Law, it is the assessor's job to appraise all real property at market value for property tax purposes. As a method of checks and balances, the Department of Revenue uses statistics and ratios relating to assessed market value and current sale prices to confirm that the law is upheld. Assessors use similar statistics and sales ratios to identify market trends in developing market values. 12 City of Centerville A sales ratio is obtained by comparing the assessor's market value to the adjusted sales price of each property sold in an arms - length transaction within a fixed period. An "arms- length" transaction is one that is generated after a property has had sufficient time on the open market, between both an informed buyer and seller with no undue pressure on either party. The median or mid -point ratios are calculated and stratified by property classification. The only perfect assessment would have a 100% ratio for every sale. This is of course, is impossible. Because we are not able to predict major events that may cause significant shifts in the market, the state allows a 15% margin of error. The Department of Revenue adjusts the median ratio by the percentage of growth from the previous year's abstract value of the same class of property within the same jurisdiction. This adjusted median ratio must fall between 90% and 105 %. Any deviation will warrant a state mandated jurisdiction -wide adjustment of at least 5 %. To avoid this increase, the Anoka County Assessor requests a median sales ratio of 94.5 %. Countywide, we have the ability to stratify the ratios by style, age, quality of construction, size, land zone and value. This assists us in appraising all of our properties closer to our goal ratio. Sales Statistics Defined In addition to the median ratio, we have the ability to develop other statistics to test the accuracy of the assessment. Some of these are used at the state and county level also. The primary statistics used are: Aggregate Ratio: This is the total market value of all sale properties divided by the total sale prices. It, along with the mean ratio, gives an idea of our assessment level. Within the city, we constantly try to achieve an aggregate and mean ratio of 94% to 95% to give us a margin to account for a fluctuating market and still maintain ratios within state mandated guidelines. Mean Ratio: The mean is the average ratio. We use this ratio not only to watch our assessment level, but also to analyze property values by development, type of dwelling and value range. These studies enable us to track market trends in neighborhoods, popular housing types and classes of property. Coefficient of Dispersion (COD): The COD measures the accuracy of the assessment. It is possible to have a median ratio of 93% with 300 sales, two ratios at 93 %, 149 at 80% and 149 at 103 %. Although this is an excellent median ratio, there is obviously a great inequality in the assessment. The COD indicates the spread of the ratios from the mean or median ratio. 13 City of Centerville The goal of a good assessment is a COD of 10 to 20. A COD under 10 is considered excellent and anything over 20 will mean an assessment review by the Department of Revenue. Price Related Differential (PRD): This statistic measures the equality between the assessment of high and low valued property. A PRD over 100 indicates a regressive assessment, or the lower valued properties are assessed at a greater degree than the higher. A PRD of less than 100 indicates a progressive assessment or the opposite. A perfect PRD of 100 means that both higher and lower valued properties are assessed exactly equal. Current Sales Study Statistics The following statistics are based upon ratios calculated using 2010 pay 2011 market values and October 2010 - September 2011 sales. These are the ratios that our office uses for citywide equalization, checking assessment accuracy, and predicting trends in the market. Statistic 2012 Median Ratio: 94.8 Aggregate Ratio: 94.6 Mean Ratio: 93.5 COD: 4.9 PRD: 100 2012 Anoka County Ratio Study Municipality Sales Median Ratio Coefficient County of Anoka 1148 94.5 7.5 Andover 128 94.0 6.8 Anoka 60 96.4 8.8 Blaine 264 94.6 7.3 Circle Pines 28 94.2 7.2 Columbia Heights 81 93.9 8.8 Coon Rapids 168 94.8 6.1 Fridley 72 95.1 8.4 Lino Lakes 77 94.3 8.3 Columbus 7 94.5 3.6 Spring Lake Park 12 94.2 6.4 14 City of Centerville Residential Tax Changes Examined Although the Assessor's Office is considered by many to be the primary reason for any property tax changes, there are actually several elements that can contribute to this change, including, but not limited to: • Changes in the approved levies of individual taxing jurisdictions. • Bond referendum approvals. • Tax rate changes approved by the State Legislature. • Changes to the homestead credit, educational credits, agricultural aid, special programs (including "This Old House ", limitations on increases in value) approved by the State Legislature. • Changes in assessed market value. • Changes in the classification (use) of the property. A combination of any of these factors can bring about a change in the annual property tax bill. 2012 Centerville Residential Ratio by Zone Zone /Code Neighborhood Desc. #Sales Median Coefficient CE01 AGRICULTURAL 0 CE02 DOWNTOWN CENTERVILLE 0 CE03 NORTHSIDE AVERGE 7 91.5 7.8 CE04 2.5 TIP 10 ACRE RES 0 CE05 LAKESHORE 1 101 na CE06 SOUTHSIDE AVERAGE 0 CE07 ABOVE AVERAGE RES 1 94.2 6.7 CE08 AVERAGE TOWNHOMES 1 91 na CE09 ABOVE AVERAGE TOWNHOMES 6 94.9 ALL ZONES 16 94.8 4.9 15 City of Centerville 2012 Real Estate Tax Information The 2012 real estate tax bills were sent out around the middle of March. A brief review of the tax procedure is provided. Discussion The real estate tax is an ad valorem tax; that is, a tax levied based on the value of the property. The calculation of the tax requires two variables, a tax capacity value and the district tax capacity rate applicable to each individual property. Tax Capacity Tax capacity value is a percentage of the taxable market value of a property. State law sets the percent. Determination of tax capacity values have historically changed over the years although the payable 2012 are mostly unchanged from 2011. For the taxes payable in 2012 the rates are as follows: Tax capacity value for residential homestead property is determined as follows: Res. Homestead (1A) Taxable Market Value First $500,000 @ 1.00% Taxable Market Value Over $500,000 @ 1.25% Tax capacity value for rental residential property is determined as follows: One unit (413131) Taxable Market Value First $500,000 @ 1.00% Taxable Market Value Over $500,000 @ 1.25% Two to three unit s (4131) Taxable Market Value All @ 1.25% Apts 4+ units (4A) Estimated Market Value All @ 1.25% Low Inc. Rental Housing Estimated Market Value All @ .75% Tax capacity value for commercial /industrial property is determined as follows: Commercial /Industrial (3A) Estimated Market Value First $150,000 @ 1.50% Over $150,000 @ 2.00% 16 City of Centerville Appeals Procedure Each spring Anoka County sends out a property tax bill. Three factors that affect the tax bill are: 1. The amount your local governments (town, city, county, etc.) spend to provide services to your community, 2. the taxable market value of your property, and 3. the classification of your property (how it is used). The assessor determines the final two factors. You may appeal the value or classification of your property. Informal Appeal Property owners are encouraged to call the appraiser or assessor whenever they have questions or concerns about their market value, classification of the property, or the assessment process. 0 Almost all questions can be answered during this informal appeal process 0 When taxpayers call questioning their market value, every effort is made to make an appointment to inspect properties that were not previously inspected. 0 If the data on the property is correct, the appraiser is able to show the property owner other sales in the market that support the estimated market value. 0 If errors are found during the inspection, or other factors indicate a value reduction is warranted, the appraiser can easily make the changes at this time. Local Board of Equalization 0 The Local Board of Equalization includes the mayor and city council members. 0 The Board meets during April and early May. 0 Taxpayers can make their appeal in person or by letter. 0 The assessor is present to answer any questions and present evidence supporting their value. County Board of Appeal and Equalization In order to appeal to the County Board of Appeal and Equalization, a property owner must first appeal to the Local Board of Appeal and Equalization. The County Board of Appeal and Equalization follows the Local Board of Appeal and Equalization in the assessment appeals process. Their role is to ensure equalization among individual assessment districts and classes of property. MA City of Centerville 0 The board meets in June. In 2012 it will commence on June 11 at 6:00 pm. 0 A taxpayer must first appeal to the local board before appealing to the county board. Decisions of the County Board of Appeal and Equalization can be appealed to tax court. Minnesota Tax Court The Tax Court has statewide jurisdiction. Except for an appeal to the Supreme Court, the Tax Court shall be the sole, exclusive and final authority for the hearing and determination of all questions of law and fact arising under the tax laws of the state. There are two divisions of tax court: the small claims division and the regular division. The Small Claims Division of the Tax Court only hears appeals involving one of the following situations: • The assessor's estimated market value of the property is <$300,000 • The entire parcel is classified as a residential homestead and the parcel contains no more than one dwelling unit. • The entire property is classified as an agricultural homestead. • Appeals involving the denial of a current year application for homestead classification of the property. The proceedings of the small claims division are less formal and property owners often represent themselves. There is no official record of the proceedings. Decisions made by the small claims division are final and cannot be appealed further. Small claims decisions do not set precedent. The Regular Division of the Tax Court will hear all appeals, including those within the jurisdiction of the small claims division. Decisions made here can be appealed to a higher court. The principal office for the Tax Court is located in St. Paul. However, the Tax Court is a circuit court and can hold hearings at any other place within the state so that taxpayers may appear with as little inconvenience and expense to the taxpayer as possible. Appeals of property located in Anoka County are heard at the Anoka County Courthouse, with trials scheduled to begin on Thursdays. Three judges make up the Tax Court. Each may hear and decide cases independently. However, a case may be tried before the entire court under certain circumstances. The petitioner must file in tax court on or before April 30 of the year in which the tax is payable. 18 City of Centerville Sample Notice i+Noti eIof Valu and Classification - County of Anok - This is Ir of a bill Property Records and Taxation This fornn is to notify you of he rnarkal value and olassfiaaltan oil your property Wheat R. Sutherland for assessment year 2011 The property iaxe8 your will pay in 2012 Anoka County Asgassor wilt be based on this valuation and classiriodluon. 2100 3rd Avenue Anoka MN 5530,3-2281 (763)323.5475' ww w.co anolka nn us FIELDS (ERIC & 0RIDGETTE 39035 Ftl I.MORE ST NE EAST BETHEL MN 55011.9283" Property information is available for viewing IMonday'• Friday, 8,00 am, - 4.30sp.m at Me Anoka County Government Center Room 165 Public Research Area, 2100 3rd Ave., Anoka or online 'at wwwco.anoka mn.us 071000 � e s` k' .3 1 x k` � �a� t� ✓ f! f p "M " I" , 115�LFf, THE W 165 FT OF E 183 FT Of NE114 OF INW114 OF SEC 19 TWP 31 RGE;23 (AS Io4EAS ALC E LINES THEREOF) EX RD,'S1f'i3,3 TO EASE OF REC 384 f39T'IH AVE NE BLAINE MN 55434 -01000 1 � Property I.O.: 19- 31- 23- 21.0002 Assessment Year 2010 Assessment Year 2011 (For Taxes Payable in 2011) (For Taxes Payable Gin 2012) CormmnlI nd Cxrmm/Ind 35x.. .M i' i i�f°�o. a✓0 �,�t:�T" Assessment Year 2010 Assessment Year 2011 (For Taxes Payable in 20111 (For Tars Payable in 2012) Estimated Market Value $169,700 '9153,400 _. Taxalale Parlcf fllaltne 00 X103;400 Please read the back of this notice for important appeal) information, n 19 City of Centerville Taxpalyer(s)t SMITH JOHN 1, 1234 ANY ST ANOKA, MN 55303 Property LID.: 03-01.01-01-1111 Property 1Ye5cription, UYIPS 10 & 111 BLK D WATERVIEW HEIGHTS, SUBJT0 EASE OFRECORD 1234 ANYWHERE ST ANOKA, MN 55303 Owner(s); SMITH JOHN L P P'11 P �� RTY T �� S7A E =MEN I X ROPERTY'TAX STATEMENT PROPERTY TAX VALUES & CLASSIFICATION TaxasPay A§ Year: 2011 2012 Estimated Markel VDfiae: 177,51)0 176,700 Homestead Exchnioir 21,331 rnxable Marke Vatac I V,500 155,363 New improvernetiW Expired Exclosionsi Property Classification: R" Hscd Ides I You may be efigible,16 setae ne or even two $$$ ref ouls to reduce your property I(m REFUND's".) Readibe back ofthiv stutement to Taxes Payable Year: Oil Anoka County 1, ............ Use this arriount on Form MIPR to see ifyon are eligible lot a property tax reffind. Larry W. Dafien, Division Manager Property Records and Taxation $2,356.37 2, 2 3 Avenne 4�w Property Tax and Credits Anoka, MN 55303-2281 Pooperty taxes before credits V2,243.60 52,356.37 (763) 3 -5400 IN IT wwvy.coAnoka.rnn.tts Taxpalyer(s)t SMITH JOHN 1, 1234 ANY ST ANOKA, MN 55303 Property LID.: 03-01.01-01-1111 Property 1Ye5cription, UYIPS 10 & 111 BLK D WATERVIEW HEIGHTS, SUBJT0 EASE OFRECORD 1234 ANYWHERE ST ANOKA, MN 55303 Owner(s); SMITH JOHN L P P'11 P �� RTY T �� S7A E =MEN I X ROPERTY'TAX STATEMENT PROPERTY TAX VALUES & CLASSIFICATION TaxasPay A§ Year: 2011 2012 Estimated Markel VDfiae: 177,51)0 176,700 Homestead Exchnioir 21,331 rnxable Marke Vatac I V,500 155,363 New improvernetiW Expired Exclosionsi Property Classification: R" Hscd Ides I You may be efigible,16 setae ne or even two $$$ ref ouls to reduce your property I(m REFUND's".) Readibe back ofthiv stutement to Taxes Payable Year: Oil 20 12 1, ............ Use this arriount on Form MIPR to see ifyon are eligible lot a property tax reffind. Ffla by AtAgust I S. Irthis box is checked, yon owe dclincloem taxes and are not eligible, $2,356.37 2, i thLte amounts, on E I PR of axe eligible lair a s pecial rcf!md,— S2,1243.60 Property Tax and Credits I Pooperty taxes before credits V2,243.60 52,356.37 4. Credits that reduce proper taxes A. Agriculnwali rna&0 value credit $UO $0,00 B, Agi•icultarai preserve credit $0,00 $0.00 5. Property taxes after credits $2,243,W S2,356,37 Property 'tax by Jurisdiction 6. County A. General coumy levy S6 3U 1 V)39,40 R. Regional rail anthorio) $21.14 $ 10. [1) * Coonly/nnunicipall pa blie safety radio system $6 73 $7.29 * City or Town $08169 $78171 * StWO gcrierril tax 50100 9).00 W. School district: I 1 A , Voter approved tevies $549.47 %2107 B. Offier lo it lvvics $280.72 $217.78 lL Special taxing districts A, Metropolitan special taxing disidos $45.75 $50,71 B. Other special laxing districts $23,09 $26.3 1 (.' Tax increment $0,00 1), Fiscal disparity $0.00 1 2, Non-� irtolt voter approved referenda levies SOMO S 0, W 13 3 d tal rt tax before special am ) 43.60 S2,3 563 7 Special ;issessments t 4, SpoQiai Assessments & Solid waste management charge S36,09 $24.02 t3. AR other speeini $0.00 $0.00 Contuminadoa tax so"flo SOMO 15� TOTAL PROPERTY TAX AND SPECIAL ASSUiSNIENTS S2,279,69 $2,38 2"" HALF PAYMENT STUB — PAYABLE 201.2 ]'a avoid penalty, pay on or before: October 115, 2012 Taixpaycr(s)t SMITH JOHN l, 1234 ANYWHERE ST ANOKA, MN 55303 Property I.D.t 03-01-01-011-1111 Total Property'rax for 20 $2,380.39 Second -half payment date OCL 15- $1,190.20 Please hula de Pmywrly I. LI art Chec* Make Ch•vk P avable Tw AxvAa Couid 1, 21 W 3"Ave-. A VOKA VN 55303- 2281 Uieck to indicaw addrcss correctioin on back, I I I 1 111111 .1 g �1111111-11=11111hecku a''h nolsend 20 City of Centerville I fyou owned and oceripled thispouponly oil January 2, 2012 as youtfiomeqocad, yoxi may quality fiat one or bolls droll ale IoDowing leiuontu� I.. You may be eligilille ftir a leforo iryouf olcus exceeded certain mcorne- based thresholds, gpI( your loud houschold triennia, N fess, than $100,780, 2. if YOU also owned and occullied this property on January 2" Nit l arts your hornestead, you may he ofigible far or refund if your Property oaxes increased by nalle than 12 perccril and at Ickwt $1010 ovet last year ff'Yoiji need Form M IVR mid mstnlcd(AIS. miarresoar I Fax FaTill's 0111 (d51) 296-W44 adad Sarilion 1421 So, i'aLd, MN 5 5f46 - plra sty g Stutor Citizens Property Tax Deferral 'the Serum Citizen Dekwal ptorTam was esiablished its help senior cili/vtor having doff icufty paying Property taxes, 'I li is deferral Program, 0 seflooT eirilans to leverage lbe equity in their horn, providing I wol plionary advanaages, I, It I hors Olt; ainultral kjlll.of�pockvt paynicat An prorwroy ,axe" to 3 percent oftolol I iousehWd inconic, and 2 it provides prediclabi I hy. - lbe ealloarol you p a y % t i H nor Change too a s king as you Participate in this progranl. Fo be c I igible, you must be 1) at least 65 penis old, 2) wroll a household ale ore, of $60,000 oar less, and 3r) blive I Wed in your horros for at least l'5 years. While in this ploppa"), you will Only h"e 90 pay eisms equal to I percent of your nel ineriale, %koilli the remaining lax paid by a low iruerest bean by the Slate or Minnesota, 'flats is not a tax forgi Weness program tho impaial lax along wilho accuniol I aned irnerest will bucorne is ben oil the triopeny I'm filturequisraction, siveh as Ul da stile or diSposilkyll, of the estate. ' l`o receive start she ct and application, please "flL (65l) 55 Penalty for hate Payinent of Property 11 pay your first Inafrold second balfluotterty tax 216ICT the thre jlrlcs a penalty m ill be rKIded ill your nox. 'Ffic later yon pay, the gocaler the perially you musl pmy I lie table badow shows one peorthy you will pay d'your property laNes nos not paid betbre the dalic shown ApriMin'ral Iii-oracadi: It 010 dac 4als, fte youl second II'll rprowny I.,s os� imn't is Nwevitex 15 and y0. propeny is eloesdied as miriatbuiel, iwoneiread praticity, die pay fiant Na wnilvt 16 th-se, Now mhor 300 8% if yv�. Pay firom Dcoat"Inr I fluo"lil, haniary t, rand to% U y.e rge, on holuary 2, 20 13 s late, Aossatrual N.-Imormsuaids: If die due date for yoke Wood d 19ol r r—lierly eax twooneal w Noyslnbw 14 noed pwr priawrly is vlassi total as agrivih wrap —a- horicsasid � Wowpcfry� the Istnally roves ]firs We intyineals Mrs; $% i fyou, pay Isom N&venawr 1 6 oil owglu No winbef,10, 1 2% 1 r y.,. p ra y Orlin Doceivilsor l brouidt January 1; end 1 4 % it you Imly or Jamnavy 2.20 Ei r lat., Not" I lie lases Ila perm nud P'.pairy Immo,si oil kused pAmnlim.ni—ned beet Z ns y the prated an 1 joualba-is Which .. W OR same 611W as keep pul—ly —5, .nd '.11WIl we %abArel la the n.onoc rea.11, sd,,duleand licnall v nAe% 46 teal pnw-;y orses, All aragrrn irnrmanvntta g-rivoyi—c—re, den on fall ono, b.f.r. M.y M, 2012 Note to manufactured homeowners: The title to your maroulfiacftired heniccannot be isansiborn:d miters all current and dclinquela licusilital propery tuxes tkic at the fiflw of the trannfier are paid. IMPORTANTINFORMATION ABOU"I'VOUR PROPERTV'TAX STATEMENT > Only one lax slatement per forreel is mailed perseaur. Stravortenis are nunled in mid to Into March, with, one exception ofalarrufacruird homes, Much are nailed in mud o0hdVJane, A change in the owntaship recorded aftsa January I of den current year, will net rolitime the mailing ofa new lax siaterrient 'Thestalenicill ivillbe sent totlieprevious owner /or laxpa."r. Mortgage refinance anal sac are consislon reasarts for a change in ffit current year taxpayer and requ ire a rosluest for a duplicale, tax suderatfill- If you have not received your tax statement(s) by April V Of oka)l Yelow (duty IS" far nuo an rafactured > If yon bavellaid elf or rofinarxvi your twortgage aid wore c5crowirtgyout tax payment, You M responsible lbr Paying the tams due Failone, lorlhand, tiny your taxes rbie to relt moci y ing or lizvoig a tax statement will not lbrgive the HmOs itiall of pentaky and interest. I f0W S 1'FADi property curneum Y Cl ilssofjW as homestead mil I nor he mailed a hoilocsAcad act i fication card and w i i I coon inue to be cl am 1 ficri as homestead as lolls as the property is occupied by the owner or qu od j fying tel alive as rh61 prilic iloat Place of m x fly chis age i 11 the Oce Upoustry Mat to$ of Is Onatstead property requires notifiradrin to the County Assessor: (763)323 5737 olid wasle .,A..rs,oncwl obarse it ine WA) qa,*1wm end Wornslihon Anolka Coonly (763).MA4610 All pgopeny rel,assi q-vlolu - Are oiCougly Anoka County Now Off ers Direct Payments and Internet I'llyments for Property Taxes * Your property tax paynoelas curt now be onade ragomonucally from your chocking orsaving,saccount on direct pa"yntsnos call (763) 323 5400, From the n1ofin menu press 7' lhr general inibrimentor, then press "0" (nra avralable lisresciow aeccarms). * You can pay your taxcs from your bark accoilint oN Nwitfir svor Visa or Mastercard online at —, U, * Call (761) 323-5400 fol oarr hilcFaclive Vol" Response (IVR) syshin to access property tax ill fiormalion If Paying by Check Please be sure that: f h P nIfiren y I, I) i not yOU0 e b ee k( s ) The check is mg) led and mWe, cut for the pralacr arnoom "rho payinernslub is endoerd AD (CORRECTION NAME ADDRLSS CITY STATE W) A VOFF) iA Frpa„ V03 W PA VUFNT ma K Rov tasclor,'raviA mkvn Rv rihir IIA TV S01OWN ON TUP FACIT 21 . . . ......... 2012 2013 -�o sett ' f' a. Homestead and Cabins I'llialf 2% 4% 5% 6% 7% 8% 8% 8% 8% 8% 1 ols'. 2" half 216 6% 6% 8% 10% —2L�th-Kijma—id — 59 7% 7% 9% 10% Non-Ilowestead l hl@lr 4% 8% 9% 10% 1'.I% I21M 12% 1 12% 12% 14% 2"'fialf 4% 8% 8% t2% l4% 3coh U 8%, � Ill/. I ()-/a l4% Personal 8% 8% mx, R% 8% 81% Ninnufacturesilloures 1 half 81". 8% 9% 8% 8% 8% 8% .j - half . ...... ...... .. .. . . . —31111-- 8% 8% 8% Note to manufactured homeowners: The title to your maroulfiacftired heniccannot be isansiborn:d miters all current and dclinquela licusilital propery tuxes tkic at the fiflw of the trannfier are paid. IMPORTANTINFORMATION ABOU"I'VOUR PROPERTV'TAX STATEMENT > Only one lax slatement per forreel is mailed perseaur. Stravortenis are nunled in mid to Into March, with, one exception ofalarrufacruird homes, Much are nailed in mud o0hdVJane, A change in the owntaship recorded aftsa January I of den current year, will net rolitime the mailing ofa new lax siaterrient 'Thestalenicill ivillbe sent totlieprevious owner /or laxpa."r. Mortgage refinance anal sac are consislon reasarts for a change in ffit current year taxpayer and requ ire a rosluest for a duplicale, tax suderatfill- If you have not received your tax statement(s) by April V Of oka)l Yelow (duty IS" far nuo an rafactured > If yon bavellaid elf or rofinarxvi your twortgage aid wore c5crowirtgyout tax payment, You M responsible lbr Paying the tams due Failone, lorlhand, tiny your taxes rbie to relt moci y ing or lizvoig a tax statement will not lbrgive the HmOs itiall of pentaky and interest. I f0W S 1'FADi property curneum Y Cl ilssofjW as homestead mil I nor he mailed a hoilocsAcad act i fication card and w i i I coon inue to be cl am 1 ficri as homestead as lolls as the property is occupied by the owner or qu od j fying tel alive as rh61 prilic iloat Place of m x fly chis age i 11 the Oce Upoustry Mat to$ of Is Onatstead property requires notifiradrin to the County Assessor: (763)323 5737 olid wasle .,A..rs,oncwl obarse it ine WA) qa,*1wm end Wornslihon Anolka Coonly (763).MA4610 All pgopeny rel,assi q-vlolu - Are oiCougly Anoka County Now Off ers Direct Payments and Internet I'llyments for Property Taxes * Your property tax paynoelas curt now be onade ragomonucally from your chocking orsaving,saccount on direct pa"yntsnos call (763) 323 5400, From the n1ofin menu press 7' lhr general inibrimentor, then press "0" (nra avralable lisresciow aeccarms). * You can pay your taxcs from your bark accoilint oN Nwitfir svor Visa or Mastercard online at —, U, * Call (761) 323-5400 fol oarr hilcFaclive Vol" Response (IVR) syshin to access property tax ill fiormalion If Paying by Check Please be sure that: f h P nIfiren y I, I) i not yOU0 e b ee k( s ) The check is mg) led and mWe, cut for the pralacr arnoom "rho payinernslub is endoerd AD (CORRECTION NAME ADDRLSS CITY STATE W) A VOFF) iA Frpa„ V03 W PA VUFNT ma K Rov tasclor,'raviA mkvn Rv rihir IIA TV S01OWN ON TUP FACIT 21 page 183' 4 Database„ tSTARM) %C A N RUM Thaluiay,C.120201 I 12Z3 PM 0 K A C 0 U N T Y 0 TRUTH IN TAXATIO PAY 2012 TAX RATES as 0 County 1 so Total Total City/ Total Total Tax so so CRY (D County County CRT city I Voter so AM school met Wate� County Host, SP- Dist Cap Based Rmv RMv Towne Total RMY Municipality T County Raft Rail Radio Town Apins Other 916 OMRkj Agency Shed MRA Dist w/o BRA Rate Voter Od- RMV Based Rate File ANDOVER R..Msp.R."i MUM (D 51 L 11 G 4 1.056% 0.649 0.466% 43.579% 91501% M916% 21.497% 1.568 108,767% 0.25171% 0.01923% CA0779% "'� 71 7171% 20 A .5 11 4 1.056% 0.649 0.468 % 43.13% 9.501 % 11.946 11.447% 1.50% 0.941% 0.941 109,259% 0,25 V1 % 0,01523 % 0.00779% -:� () 1 53015L I1.05 6 % 0649% 9. 468% ' 43,579% 18. 351 % 13.04% 32491 % 1,568% 119-511% SH % (IM 0.0194% U0779% 0.09,377% 75011A 4 1.0566% 0: 649 D468% 43,13% 9501 % 11,990% 21.447% 1 0.941% 0.94V% 109,259-k 0.25171% 0.01823 % 0.00779% 0.27773% ANOKA Fla. Disp. Ratio: 0.367513 01011• 41.056% 08319% 0,168% 49.953% 9.501% 11.946% 21.447% 3.284% 1.679% 1.679% t)8-536% 0.251 6 .u1323 % 0.2699+1 BETHEL Ms. MP. Ratio 0.39149 27015- 41,056% 0.549 0.468%, 74.2% 18.351% 13.94% 34191% 1,568% 1,681% LOW% 151.813% 0.06658% 0.0194 0108598% BLAINE Fts. DISP• Rao; 0.404397 20 02 011E 41.056% 0.64 % 9 11.958% 33402% 501 9 % 11.946 W6 2 147 % 3.2&4 4 % 1853%, 1.853% M.239% 0Z5 171 % 0,01023 % 0,W639 % 0.27633% Wo H 4 05 0.61 % 0 6 % 33:q82% 9� 50 1 It 11 .946% ZI 1: 447%, 12,84 % 18 3% 5 1 , S 3% 1 2 02� 39% 0.25 "%, 0.0 823% 1 O�00639 % 0.27'63'3% 01� 0 11A 41.05f,% 0,649! 016 33.482% 9.501% 11.946% 21A47% 3,284% DMist 1.853% 4794% 103.18% 0.25171 IN, 0B1823 % 0,00639% 0.27633% 046 118 0 4).056"! 0,649%, 0,46 4 % 33 ,482 % 9. so I %, 11 : 946-k 21A47% 31284% 2,292% 1.853% % 4.145% M 109.531 0,25171 uian % moug % 0.7.7633% 060128 4L056% 0.60% a 0A6 % 3 3 A8 2% 23-gol 39.9 3.284 2.292% 1.853 4.14M 122,994% 0.12646% 0.02761% 0.0039 % 0.16046% 07012A 41,0 U0 % 56% 0.468 33. 48'% 23. % 0 009% 39,00% 3.284% 3.941% IS53% 2,794% 121.643% 0.12646% 0.027% 0.00639 W. 0.16016% 090 41.056% 0,649% 6468% % 33,482% 24: -4 11,684 % 35.937% 3.284% 1.8534% 1E53% 116d2l) % 0.14931 % 0.0249% 0.00639% 0.1806% 09016H 41,056% 0.649% 0,460% 33,482% 24,253 11,681% 35.937% 3.289 "10 1.851% 1.853% 116.72 0,14931% 0m49 % 0.00639% 0.1806% 10014A 411 16% 0.649 MUM 33.482% 2,4.253 % 11.684% 31937 12si % 0.941% 1 ,85:3 % 1754% 117.67% 0.14931 % 4.0249% 0.0053 1 j� 0.1806% 110168 M 41. 49 % 0.468% 33.02% 24.253 4 1.654 91 35.937%. 3.284% 2292% 1,853% 4. 119.021% 0.14931 . % 0,0249 %v 0.0063951. 0.1006% 120 16H 4 1.0 : 56% 056% OA49 % 0.468% 33M2% 26A9 -A 1 1.684% 38174% 3.284'31, 1.853% 1.853% 118,966 %h 0,14931% 0.0249 0.0063 01806% 6701 1 A 41056% 0.649% DA68% 31 9.501%, 11.946% 21.447% 3:284'34, 0.911% 1.853% 2.794% 10138% U5171 % 0.01823% 0.00639% 0.27633% 68011A 41:056% 0.649% 0,468% 33.482% 9.501% 14.946% 21.147% 3:289' 0,941% 1.853 1 % 2,794% 103.18 %, 0.25171% 0,01823% 0.00639 0,27633% 690 �M 41 0649% 0L465% 33:482% 3% 9.504 11.946% 21A47 3284% 0.941 1.853 2.794% 103-18% O.Z5171 % 0,01823% % 0.00639 0.27633% 70 0 J 1A Z 056% 0: 649 0.468% 33,482% 9.501%6 1, 1,.946% 2L447% 3.284 0.941% 11853% 2.794% 103.18 -/. 0.25171% O.Q1823 % 0.00639% 0.27633% 71011A 11.056% 0 0.468% 33.482% 4.504"'% M946% 21447% 3.284 0.941% 1.853 % 2.791% 103,0.8% D.25M % 0.61823'% 04009-lb 027633% CENTERVILLE Fis. Disp. Ratio! 0.416276 280128 41,056% M49% 1168% 66.692% 23.901 % 16.009 % 39'.41% 3.284 2.292% 1,681 3A73% 156.032% 0.12646% 0.02761 0,15407% CIRCLE PINES TM. Disp, Ratio: 0.304091 2901213 41,056% 0,649% 0A68% 63,899% 23.901 16.009% 39M q, 3.2&3% ZQ92% 2.292% 151.558% 0.12646-A 0.07:761 0,15407% COLUMBIA HEIGHTS Ps. Disp. R.doo 0.132141 38.325% ?5% 064 % 9 9 0 6. 0. 66.228% Q,417 % 11.938% 24355 "& 3.284% 3.237% 1237A 136.546% 0.15713%0 OM7 % M M76% 1.90•••138 1.90•••138 3 2 5% 0:64 % 0 : 4 66 %, 66. 12.417 % 24.355% 3.284% 2.292% 3.237% 5.'529% 138,8,38% 6.1571331" 0,01987% 0,176% page 183' 4 Database„ tSTARM) COLUMBUS As. Disp. Ratim 0.560737 488311 41.056% 0.099 SAW% 41418% 8.892% 9.569% A N' Ci K A C 0 U IN T Y RUNI: ThuudW,Cd20 2011 12:06 PM 8.882% TRUTH IN TAXAT10114 PAY 2012 TAX RATES 1 5083 8 41:056% 0.5495E 0,468% County I SO Tatar Total CILTI %569% Total Total I " so 5 D CRY I County Cl ty Cftv I Voter so AVTl School mot Wall- County Hosp Spec 01st Cap Based RMV RMV T.- TOW RMV Municipfity F.C.A. County flegRall Radio Town Apprvd oth., 916 DR;VrjCt Agency SbW KRA Dist Wo BRA Rate vow Mor RMY Based Rate COLUMBUS As. Disp. Ratim 0.560737 488311 41.056% 0.099 SAW% 41418% 8.892% 9.569% 49831A 41. 01649% 0.1168% 42.997% 8.882% 9.569% 1 5083 8 41:056% 0.5495E 0,468% 424997% 8.882% %569% COOK RAPIDS Fis. Disp. Ratio: 0.309488 110,878% 0,00079% 0,00252 % 0.00371% 16011- 41,05VA, 0.645 CASS% 42.707% 9.501% 11.946% 100110 4 , '0 56% -9 'k U. 0.460"/0 4!'.707% 9 , ", 1608 Z56% 0.649% 0,46J3 442.707% 9: ,Ol % I.946% 16011H 4LOS6 -k 0.64 0.468% 42.747 9.501% AL946% 1601114 4 IX156% 0.649% 0.468% 42.707% 9.501% 11.946% 17011A 4L055% OXA9 % 0 42.707% 9.501 IL'916 180110.1 41 056% 0.649' % 0468% 42.707% 9.591% 11.946% 72011A 41 056% '0,649 0.468% u'70 7 % 9.501% 11.946% 73011A 41.065% 41.065% 0,619% SAW % 2:70 4 7% 9501% 11. 946% 74011A 41.056% 0,09% OAS$% 41707% 9:50 u946% EAST BETHEL Fk. Dfisp. Ratio: 0.388201 0126991 V. 21A474% 3284 % 0.948 4 1 . 056% 0649% 0.46 M, 43.89% IS351 1 % 13.84% � 41:056% 0: 649 % 0.468% 43.694E 16.351.% 11.81% 321331) 41,056% 0.049 0,468% 43.89% 0.882 "h 9.569% FRIDLEY Fis. Disp. Ratloi 0.35557 3.284% 2.292% 1.622% 19011E 41.056% 015'19% 0.468% 39.478% 9.50 11.946% 1901 LG 49 :056% 0 649 % 0,40% 39,478% 0 1 9 ' 5 3.479A, 210131 4 1 A6% 0:649 6 Y, 5 0.46B% 39,478% 1 I1.938% 220138 11.056% 04494 0,468% 39.978% 12.417 % 11.938% 230141- 41056% 0.649% 0.469% 39.478% 91069% 1 78:5`% 2 . llr' 91.056% 0 0,40% 39A78% 9.089 49 2745% �NNG 4 1.056% 01645% 0,468% 39.478% 9.089 k 27A5N& 230141 41.056% 0.649' 0.468% 39.478%, 9.089% 27,85% 240 41.056 1 * 04 49 0.46$'% 39.478 9,089% 27XS% 25016E 41X56% OE49 % 0:468% 39418 74.253 11 .589% 25016F 11 '056 % 0449% 0.468% 39� .4 78% 24.253% 11,684% 250166 41.056% 0,649% 0.468% 39'.478% 5I.W % 11.684% 76016B 91.056% 0.649% 0.1663% 39.478% 24.253% 11.684% HAM LAKE Ffs. Loop, Ratio: 0.498971 54011- 41)56% Oi649% 0,468% 26.677- 9501% 11.946% 550 , IA 41. 0:649% 0868% 2.6,67796 9 , % 1 1.946% 560118 41,056% 0.649�% 0468% 26.677% 9.501% 11.946% 18.451% 3.281% 1.601% 11681% 101037% 4710079 % 0,00292 1* ' 18.451% 3.2% 84.941 0 %, i,68t% 2.622% 109.527% 0L00079 % 0.00297% 0.00371% 18.4E q, 3.284% 2.297'% 1.601% 3.973% 110,878% 0,00079% 0,00252 % 0.00371% 21.447% 3.284 10e.121% 0.00079 % 1,1663% 1463% 911.274% 0.25171% 0.01623% 0.26'991% 21.447% 3284% 1.853% 1.663'% 1.663% 1 % (1 111.274 25171 % 0,01823 % 0.06994 % 21.447% % 3:284% 1:663 1.663% 1.1. 1.274 % 0125 0.01823% 0.26994 21.447% 3,284% 24,355 % 1.663 lb 3k6341 111,274% 0.25171 % 0,01823 % 026994% 2L147% 3,284% 001404% 1-653% 1163% 111,211% 0.25171% 0.01823% 0:2094% 21.447% 3,294% 0.941% 1M3% 2k09% 112.215%, 0,25171% 0.01923 % V.6994% 21.447% 3,284% 1.853 % 1A63% 1.663% 111.274%, 0.25171% 0.01873% 0.26994% 21A47 % 3.2B4 % 0.941% L663 1 % 2401% 11,2215% 0.25171% 0,01823 % 0126991 V. 21A474% 3284 % 0.948 L663% 2.604% 112 0.25171 0,01823 % 0.2.6994% 21.447% 3.2814%, 0.941% 1.663 % 2.601% 112.215% 0.25171% 0.01823 % 0.26991% 32.191% 1,568%, 2.039% 2.039% 121.361% 0.06658' 0.0194 0.01759% 0.103S7%, 32.191% 1.568 % 2.039% 2.039% 121,861 % 0,06658%, 0,0144% 0 .01759% 0.10357% 18,451% 1 21039% IM9 10e.121% 0.00079 % 0.00292 0.01759 0,0213% ?1,447%, 3184% 1.622% 1.853% 3A75% 109.857% 0.25171% 0I09.823 % 001404 % 8, 283+58 % 7.1,447% 3.284% 1.622% 1.053% 3.475% 109357% 015171 % 0.01823 % 0 . 0 1404 % 2639B% 24,355 % 3.284% 1.622% k.853%,, 3,475% 112,765 % 0.15713 % 0.01887 % 001404% 11 W04% 24.355 3,281% 2.292% 1.622% 1.853% 5:76'7 5�76% 1 ISS9 % UA5713 % 0.01887%, 0:01404% 9.19004% 36339% 3.284% 1.622% 1.853 % 1475% 125.349% 0,0107% 0.02937 % 0,014M% 0,12448% 36,'93'9 % 3.284% 1.422 1.853 3.475% 1 25.349% 9.08107% 0.07:917% 0.01404% 0.12448% 36.939% 3.204 1.622% 1,853 3475% 1 1 25.349% 0.08107% 7 0.02937'4 0.01404 0 . 1 2 448"% 36-939% 3.281% 1,62% 2 1,053 4, 3:475% 1 25.349"% 0.06107% 0,0),937 0: 01404 % [1: 36.939% 3.284% 2.292% 1.622% 1,853% 5.767% 127.691% 0.0807% 0,02937 ODL404 % 0.12448% 35.937% 3.284% 1.622. % 1,853% 3.479A, 124347% 0.14931%, OX49 OD1101 % 0.188 35.937% 3.284% 1.622% 1$8 3% 3.475% O�4.31? �b 019931 % 0,0219% 0.01409 OJOS 5% F 35.937% 3.284% 1.622 1.853% 3A75% 124'347 % 0' 0931 %, oS249 % OA140i % 0.10825% 35,937% 3,284% 2.797.% 1 .622% 1.853% 5.767% 126.639% 0.14931% 00219'% 0.0Q404 0.18925%, 21 1.1101% 1� 181 1, A „681, %. 93.546% otim " % '699q % 447% ,5,68% 0.991% 0.991% 1 601 2.622% 94A87 0 0,() fQ,3 % 0. 26994% 21.447% 1.568% 2.292 1,6 "M, 01 % 3.973% 95.838% 0 5171 0.01923% 06994% Page 2 of 4 DMb.- JSTARIOQJ Y VIOL %C 0 h 0 (D VIOL (D RUN Thursday Out 20 2011 1206 PM Y VIOL %c 0 h 0 (D VIOL (D A N O K A C 0 U IN T Y c U%ly TRUTH IN TAXATION PAY 2012 TAX RATES County P ED Total Total City/ 'total Total T.. 5 D so aty County city city I votw SO AVT1 S.h. i met Waken- County H..p SW Out cap samw RMV RMV Town.. Total AMY Municipality T.C.A. County Reg Rail Radio Town, Apprad MeT 916 Wianick Agency Si "RA Dag W/o RRA Rat. Voter OU. RMV an "w" i R-- "I',- 1,- 05$% 0.644 0,46,8% 26.6n% 8.802% 9.569% 1.8.451, 1.568% L681 % 1.6131% 9CL55 % 0.010079% OI)02.9�� % 0.00371% 1683 . 41.066% 0,649% 0.466% 26,677% SS82: % 9.569% 111.451% 1.568%0 0,941 1.681% 2422% 91191.% 0.00079 % 0.00292% 0.0'0371% 76011A 41.054% 0449 0.468% 26.677% 9150% 11.946% 21.147% 1.568% 0,941% 1.681% 2.622% 94,18796 0.25171 , % 041623% 0.26994% 77011A 41.056% 0.643% 0.458% 26:677% 9.501% 11.9`16% 2L 1,568% 0.941% 1.681% 2.622% 94.487% 0.25171% 0.0 0.26"4% 7MI iA 41X56% 0.649% 0:468% 26677% 9.501µ1i 11.946% 21A47% 1.568 0.941% 1.681% 2102% 94.0,7% 0.251715 11.01823 % 0,26994% 79011A 41.056% 0,649% 0.168% 26.677% 9.501% 11.946% 21,447% k .%S % 0.941% 1.681% 2,622% 94.497% 0.25171 %. 0,01923% 0,26994% 80101m 41.056 0049% 01168% 26677% 9.501% 14.946% 6% 21,7% 0 1.566 % M941 L681% 2622% 94.4V 0.25179 U1823 % 0,269911% 8 1 831 A 41 ,050% 0:6q9% 0A68%, 20.1177% 81182% 9.569% 18.45t% 1,568-4, 0.941% 1.681% 1622% 91.491% 0.00079% 0.00292. 0.0037 HILLTOP Fla. Di$p. Ratio) 4.354423 330136 11X099r5 0.649% CA685 110.555% 12.417% 114711% 2 7.284 1.681% 1 3,514% 183.794 0.15713% 0,0188741 0A16% LEXINGTON FIS. Oiap. Rd.; 0.380276 310128 41,056% 0-649% 0.468% 67.453% 23,901% 16.009% 39.91% 3.284% 2.292% 1, 6131% 3.973% 156,793 % 0. 12596 % 0.02761 % 0.154017% LINO LAKES lFw. Dzp. Ratio: 0.370239 35012K 41.056% 0.649% 0L468% 42.7794 23,901%. 16.009% 3'4L91% 3.284 128.146% 0.42646% 0,02 0.15µ07% 3601 41,056% 0,649% 0.468% 42.779% 23901 16.009% 39,91 31284 2.29z% 2.292% 130.4311%, 0.12646% 0.02 0,1540'7% P624K 41.056-4 0.CA9 % 0,461% 42,7n% 10016% 16.029% 26.045% 3.284% 114.281% 51.23998"'1 0,00831% 0.24829% 38624" 41.056% 05. 649% 0 .468% 42.779% L0.016% 16.029-1. 26.045% 3,284 2. 2112% 2.292% 116116.5'73%r 3 0.2:59985 0,00631 % 0.2482% 9 408316 41 ,456% 01,649% 0.465% 42,779% 81582% 9.569%, MASI % 3,254% 2.292 %, 2.292"% 106,979% 0.00079% 0.011292 % 0.00371% LINWOOD Fig, Oisp, Rail.; 0.370079 590151 4L056% 0619% 0A61% 33.2896 18.351 13.84% 32.191% 1.568% 1i,6BL% 1.681% 110.893% 0.066513% 0.0194%, 0-08598% 608311 41.056% 0,649 5 0,468% 33,28%, 8.882% 1569% 18.451% 1.568% 1;.450.1 % 1.681% 97.153% 0.00079 % 0.00292 % 0.00311 % NOWTHEN Fis. Disp, Ratio! 0.420491 45011- 41.056%, 0.649% 0,468% 31435% 9.501% 11.946% 21.447% 1.560% 4,68 1.681% 97.304% 0.25171% 0,01823% 02K94% 46015- 41.056% 4.649% 0,460% 30,435% 18,351% 1324% 321191 1.568 1.681% 1,681 108.018, 0.06658%, 001N% 0.085918% 17728- 41,11 0'605 0,465% 30.435% 26.616 IS, 16.876% 45.492% 1.5685 1.101% 1.681% 17.1..349% 11508% 4.02246 0.17326% OAKGROVE It.. lisp. Ratio! 0A94206 61111 11 1.6`19 % (1.40% M004% WWI % 11.946% 21.447% L5,69 % m I. % 102.873% 0.25171% 0.0 1623 'N 0.'26994% 620 4 L 056% 0,649 0.4 36,404% 18,351 13.84% 32.191% 1.566% 11681% 1.681% 1 0.06658% 6.0194 0.08598l% RAMSEY Fa.. Disp. Rnlff.: 0,416896 630110 41. 056`4% 0649% �156% 0 `16 8 1 4 ' 4`1321% 5.501 % 11.946% 21.447 1.568 % 3.61% 3161 % 113.119% 0D 25171 % 0.01823 3 % % 630 4 0649% 0 6 9% 9.501% 11.946% 21.447% 1.56$% 3,6 % 3.61, U3.119% 0.2 0,01123% 0.7.6994% 994% 63011.N 41.056 0.649% 0.460% 44321% 9.501, % 11.946% 21A17% i,56i� 1 % 3.61% 3,61 % 113.119% 0.25171% U1823 % 0,26991% 64 7280 41,056% 0,549% 0,466% 44.321, 26:616 % 18.876% 4SA92 % 1.560% 3.611%n 3.61% 137J64% 0.1508% 0,02246% 0.17326% 647281 11.056% 0.649% 0.460% 44-321% 26,610 18,876% 45,49Z% 1.5615 3.615, 3.64% 1,37'.164 0.1508% 0X2246 % 0,27326% Page 314 4 Dlab.se: PTAR10031 Y VIOL %c 0 h 0 (D VIOL (D R Page 4 ef 4 D.Wb- ISTARIOGI 0 1w % c A N, 0 K A C 0 U N T RUN: Thursday Ott 20 2011 12:06 PM 0 TRUTH IN TAXATION PAY 2012 TAX RATES h 0 County I SD Total Total City/ Total Total To. S D so CRY Cou nty nty city aty VOUw SD AWTI School Met W -ta� County Rasp - Sp DWI Cap Based RKV RM Town Tuna] RMV (D Municlinifity TC,A. County "I 1 Radlo law. ApprW Other 916 OE Ag-Cy Shad LIRA Divt w1a PRA Rabe Vote, Other RKY Rased Rate = F-P SPRING LAKE PARK Mo. DWp• Ratio: 0,$7$54.3 (D 41016F 11.056% 0M9% 0.468% 62.599% 24.253% 1 1.684 % 35.937% 3,284% 1.681% 1.8.53% 3334% 117.527% 0.14931 % u244% 0.1 4 19166 4 1,056% 0,619% 0.468% 62.599% 24.253% 114 84% M 35M 17.184 % 1.631% 1.853 3.534% 147,527% CA4931 % 0,0249% 017411% 420160 41.056% 0.649% 0A68% 62.599% 24.253% 11,5e4% 35,937% 3,284% 2.2'92.% 1M1% 1.853 ^n 5.826% 144.8.1.9 ' 0.14931% 0.0X49 0.17421% ST FRA14CIS Fis. Disp, Ratio: 0.405885 (D 43015- ": 0.56% M49% OS% 53.34% 0.45% 18.351% 13.84% 32,191% 1.568% L681-A 1.681 XX953 % 0.06658% 0.0144 0.08596% 44728- 41051,% 0,649% 0.168% 5334% 26.616% 18.876% 45-442 3.568% 1.681% 1.68136 144.254% 6.1503% 0,07246 0,17326% Pay 24112 Areawide Tax Rate 141.9145 % pay 2012 State Generailla. gat.. C/I 52% PAY 2012 StAt. C.-ral Tax Rate. Sea. 21 'P, Avatage tax Capacity rate 116,554% Lowest tax "Padty, r ate HAM LAKE 57831- 9055% Highest tax Capacity we hALTOP 330131 183.794% R Page 4 ef 4 D.Wb- ISTARIOGI City of Centerville Assessment Year 2007 2006 2005 2004 2003 Municipality # Median Coeff # Medlan Coeff, # Median Coeff # Median Coeff 9 Medlan Coaff Andovw 370 93,3 49 5 94:5 4,2 5911 95.4 236 479 Assessment Year 3,6 2012 94.6 32 2011 223 94.4 2010 257 94-9 2009 330 94.4 2008 213 Municipality 4 Median Coeff 0 Median Coeff # Median Coeff # Median Coeff # Median Coeff Andover 128 94.0 6,8 220 94,5 5,6 145 95,9 5.7 191 93,0 6.4 248 94,4 4.4 Anoka 60 96.4 8.8 83 94,5 7,6 61 95.5 8,1 75 94,5 7,0 132 94,2 5,4 Bethel 1 1 . 94,6 0,01 3 98,8 5.6 3 97.9 2,0 3 95 3.9 8 94,2 7.3 Blaine 264 94.6 7.3 400 95,4 71 344 95.6 8,7 325 94,8 5.7 590 94.0 62 Centeoffle 14 94,8 4,9 23 91,8 10,2 31 94-5 5,8 34 95.8 61 45 953 4.5 Circle Pines 28 942 7,2 27 95,3 7.4 33 93-8 TO 32 94,11 7.1 54 947 4.6 Columbia Heights 81 93.9 8,8 106 96,2 94 128 96-5 101,2 134 94.6 8,3 194 946 9'.1 Columbus 7 94.6 3,6 116 95,9 96 18 940 6,9 26 941 7,2 20 977 7,0 Coon Rapids 168 94,8 6.1 247 94.5 5,6 275 94,8 8,3 369 94.4 5,8 613 93,7 4.9 East BethiM 38 94A 8.4 52 96,1 6.4 35 93,7 7.4 51 92.4 8-0 83 94,2 9.1'1 Fridley 72 95,1 8.4 117 95,0 74 126 94.4 9.9 160 NA 8,0 253 94,7 6.8 Ham: Lake 65 94,5 8.3 72 94.4 8.8 53 951 7"5 77 94.4 8,0 97 93.6 6,3 Hilltop 0, --- ... 1 1102.3 0"0 0 — ... 0 - - - ... 1 96,6 — Lexington 4 943 S'l 5 96-1 8,1 7 96,2 3,8 5 945 6.0 13 93,2 8,9 Lino Lakes 77 94.3 8,3 108 95-2 63 78 95.1 7,9 107 93.8, 6,6 178 94,6 6,5 Linwood 10 93,0 7.3 2'3 97,2 9.3 15 96-6 64 20 93-8 8.1 51 957 9,4 NoWhen 3 99,1 3,1 191 94.4 10,5 15 95.3 WO 7 92.4 6,7 31 96.7 7.6 Oak Grove 25 94,6 7,8 33 94.5 9,2 22 95,0 8,9 36 94.7 9,1 64 93,8 8.1 Ramsey 81 94-5 81 109 94A 7.4 105 961 6.7 13 93,9 7.2 220 94,7 5.8 Spring Lake Park 12 94.2 6 36 95,1 9.4 30 92,1 7"5 42 94,8 6,7 59 936 4.8 St, Frands 20 919 79 34 95.2 63 24 97,2 6.6 32 94,0 4.5 87 94,7 5,0 County Total 1' 146 945 7.5 1734 94,9 6,7 1548 95,3 8,2 1865 94,3 6,9 3041 94,3 6.1. Differential 101 101 102 101 101 Assessment Year 2007 2006 2005 2004 2003 Municipality # Median Coeff # Medlan Coeff, # Median Coeff # Median Coeff 9 Medlan Coaff Andovw 370 93,3 49 5 94:5 4,2 5911 95.4 236 479 94.4 3,6 531 94.6 32 Anoka 223 94.4 6,7 257 94-9 71 330 94.4 6,8 213 94.5 5.4 233 94.5 5,6 Bethel 10 91L1 4,5 8 94,5 7,4 23 99.9 27.7 7 94.4 2.4 8 94.3 5,4 Blaine 868 916 5.5 10017 94A 5,5 1428 95.7 17.6 900 94.4 5,4 845 94.5 4,9 Centerville 75 936 7,5 84 943 63 1016 93,7 9.1 74 94.3 5.5 77 94-5 6 Circle Pines 70 96.7 5"5 91 9446 4,8 174 94,6 7.5 52 94,4 41 58 94,5 7.2 Columbia I-f6ghts 294 94,0 7,3 380 94,6 83 383 919 11,5 255 94-3 70 263 94.4 TO GOIUMNS 29 96.4 11.2 29 99.8 18,2 40 93.3 9.3 27 94,2 63 32 94,6 74 Coon Rapids 1000 93"7 5,2 1268 94-5 5,8 1488 94.3 36.6 793 94,4 SA 801 94.4 5.5 East Bethel 137 97.2 5,9 176 957 17,7 202 92.0 13,8 169 943 7.4 139 94,6 7.3 Fridley 317 93.4 6.1 429 94,7 8.4 441 98.0 7,7 290 94.5 U 260 94,5 6,1 Ham Lake 182 9348 7.6 191 94,5 6.4 3 970 434 232 94-3 5.4 208 94,4 7.0 Hilltop 1 86,0 — 3 910 11.4 3 930 18,1 0 ... 0 Lexington 25 92.9 9:3 30 94,3 7,2 23 95.2 7,9 14 94,6 41 211 94,5 4,9 Lino Lakes 235 94.4 8,8 276 94,6 5,5 284 92.5 17'.8 264 94.4 7.1 329 94,4 7A Linwood 85 91.0 16,2 68 944 9,3 75 94-3 23.5 66 94.4 7.4 86 945 7.1 Nowtheln (tka Burns) 35 905 9'0 44 94.2 5,2 91 95.2 51.8 77 94,5 9,2 50 944 8.4 Oak Grove 94 93-2 1 11 94,9 8.4 129 97-0 11,8 109 94,6 6.4 1116 944 8'5 Ramsey 315 93,7 6,9 379 94,6 6,7 561 957 133 31511 94,4 6.6 3018 944 6,0 Spring Lake Park 6 96.1 4,8 87 94.5 8.6 112 94.9 6.4 71 94,4 4.3 77 94,5 4.4 St, Fraincis 129 93,7 4,3 158 94.7 4,3 203 96.9 313 250 94.4 5"0 155 94,5 5'.9 County" otall 4,563 93,8 6-3 5,632 94-5 61 7,000 9542 217 4,693 94.4 53 4,597 94,5 5,9 Differential 99 101: ill 1011 101 26 CITY OF CENTERVILLE CITY COUNCIL MEETING March 28, 2012 6 :30 p.m. Pursuant to due call and notice thereof, the City of Centerville held their regularly scheduled meeting of March 28, 2012, at City Hall, 1880 Main Street. 1. CALL TO ORDER Mayor Wilharber called the meeting to order at 6:30 p.m. 11. PUBLIC HEARING(S) None, III. APPROVAL OF AGENDA The Mayor reviewed the Set Agenda with Council with the inclusion of payroll withholding payments and a request from Mr. John Fiecadenti, All Around Fun -- Use of Laurie LaMotte Memorial Park for Easter Egg Hunt & Inflatable Jump House, April 7, 2012. Motion by Council Member Fehreabacher,seconded b,� Council Member Paar. to approve the Agenda as presented. All in favor. Motion carried unanimously. IV. APPROVAL OF MINUTES 1. March 14, 2012 City Council Meeting Minutes A request was made to remove Council Member Paar from being present and to show him being absent. Motions Council Member Love, seconded by Council Member Fehrenbacber, to approve the March 14, 2012 City Council Meeting Minutes with the above correction. All in favor. Count Member Paar abstained. Motion carried. City of Centerville Council Meeting Minutes March 28, 2012 V. CONSENT AGENDA 1. City of Centerville March 15, 2012 through March 28, 2012 Claims (Check ##27131 -27150 WNoided Check #27137) & (Payroll WIH) 2. Centennial Lakes Police Department Claims through March 22, 2012 (Check #8861 -8884) wNoided Check #8543 3. Centennial Fire District Claims through March 16, 2012 (Check #5237 -5240 Payroll & Check #5241 -5254) Motion by Council Member Fehrenbacher, seconded by Council Member Paar, to aPProye the Consent Aeenda as Presented. All in favor,_ Motion carried unanimously. VI. AWARDSJPRESENTATIONS !APPEARANCES Mr. Lee Mann, Customer Service Representative, Stantec addressed the Council and stated that Stantec values the City as a customer, appreciates the performance review and is committed to working with City to resolve issues that were addressed in the review. Consensus of Council was that the items had been addressed during the projects and that they were satisfied with Stantec's performance and that the performance review was public information. Council thanked Engineer Statz and Mr. Mann for their services. Council member King arrived at 6:32 p.m. VII. OLD BUSINESS None. VIII, NEW BUSINESS Res. #12 -010 —Resolution Approving Internal Control Policy Brief discussion was had regarding modifications to the presented policy and they are as follows: Page 6, Cash Receipts, 2. Accounting Controls, f. second sentence, add the word "no" between "Under" and "circumstances ". Page 1', Segregation of Duties, f., second sentence add the word "City" after "or" and before "Clerk ". Motion by_Council Member Love, seconded by Council Member Fehrenbacher, to adopt Res #12- 010 — Res Internal Control Poncy with the above stated modifications. All in favor. _Motion carried unanimously. 2. Mr. John Ficcadenti, All Around Fun — Request for Use of Laurie LaMotte Memorial Park for Easter Egg Hunt & Inflatable Jump House, April 7, 2012 from 9:00 a.m. — 4:00 p.m. Administrator Larson stated that the City had just received the permit application the day previous to the meeting and there was not time for the Parks & Recreation Committee review. Administrator Larson stated that this is the first time this individual has submitted to utilize the park and is a for profit business. Discussion ensued whether the Lions desired to provide this event in the future, requirements for allowing Mr. Ficeadenti's use, number of potential participants, restroom facilities, and local business support. Page 2 of 3 2 City of Centerville Council Meeting Minutes March 28, 2012 Consensus of the Council was to allow the use of the park with the stipulation that a $500 deposit be collected and a certificate of insurance naming the City as additional insured is provided to the City prior to the event. The retainage would be returned upon successful cleanup of the park. Motion by Council Member Paar, seconded by Council Member Lov to a2prove the re nest b Mr. John. Ficcadenti,.AU Around Fun — Request for Use of Laurie LaMotte Memorial Park for an Easter Egg Hunt and Inflatable Jump House, A2ril 7, 2012 from 9:40 a.m. to 4 :00 p.m. as presented sub'ect to Liabifity Insurance requirements and a 500 Deposit. All in favor. Wilharber abstained. Motion carried unanimously. IX. ANNOUNCEMENTS/UPDATES Attorney Glaser stated that within the next few days he would be entering the next phase of the Ticket Education Program. Engineer Statz stated that all documents have been forwarded to Anoka County, punchlist items will soon be completed and a final pay request will be received for the trail project. Council Member King reported cable commission activities. Mayor Wilharber reported on a recent Rush Line Corridor meeting which entailed discussion regarding the MNPass system and construction of Park and Rides with one be located near the intersection of 35E and County Road 14. Council Member Paar reminded the audience that the parade registration form is available online. X. ADJOURNMENT Motion by Council Member Fehrenbacher seconded b Council Member Paar to adjourn the meeting. of March 28, 2012 at _6:50 p.m. All in favor. Motion carried unanimously. Transcribed by Staff Member Teresa Bender, City Clerk Page 3 of 3 3 City Council 2012 -03 -28 at 6:45 p.m. Minutes of Work Session N O O Present were Mayor Tom Wilharber, Council members Jeff Paar, Steve King, D Love, and Ben Fehrenbacher. Also present were Mark Statz of Stantec, City Attorney Kurt Glaser, and Finance Director Mike Jeziorski, 1. Bill Beard of Beard Group was present to discuss the Downtown Redevelopment Plan. He suggested that the plan may have to be revisited to reduce the amount of commercial- retail space and reposition the portion designated to townhomes. He noted that the market does not have an appetite for much of any commercial development at this time and financing projects is almost impossible. 2. Council discussed purchasing certain real estate parcels. The consensus was to move forward with purchase of the property from Anoka County at 7261 Main Street(on Peltier Lake), but were not interested in a parcel from St. Paul Regional Water Service behind Trailside Park, nor the Anoka County parcel at 1798 Main Street. 3. Council discussed rear -yard drainage issues and the possibility of doing joint projects where the city staff would trench in a drain tile and the property owners would be responsible for installing rock in the trench. While concerns were noted for liability and what to do if all of the property owners were not on board, the idea will be researched further. 4. Council discussed goals for 2012. Specifically they discussed Goal II.,E, Business Outreach and Goal III.,F, Taxpayer Satisfaction. The main element of each would be doing surveys to get information from business owners and from residents. Consensus was that the council will concentrate on the business survey this year and defer a resident survey to 2013. Council members will prepare suggested questions and send them to the City Administrator to be compiled, by the end of April. When the survey questions are finalized, Council will identify -the additional steps, including contact with the business owners in person or by phone to ask the questions. The consensus was that home based business would not be part of the survey. The meeting adjourned at about 9:30 p.m. Dallas Larson, Administrator 4 CITY OF CENTERVILLE Check Detail - April 11, 2012 Page 1 ft- _QAft .. _ . ChqSh # .Vendgr Name Comments - - - AMoUnt 41512012 000278E MASTERCARD -CITY OF CENTERVILLE --- •- •_ _ _ ,�__�._- CELL PHONE $115.30 415/2012 000278E MASTERCARD -CITY OF CENTERVILLE OFFICE SUPPLIES $27,29 4/5/2012 000278E MASTERCARD -CITY OF CENTERVILLE CELL PHONE $57,68 4/5/2012 000278E MASTERCARD -CITY OF CENTERVILLE SUPPLIES $1.92 4/5/2012 000278E MASTERCARD -CITY OF CENTERVILLE ENDICA POSTAGE $9,95 4/512012 000278E MASTERCARD -CITY OF CENTERVILLE INTERNAL 24X DVD BURNER $25,98 4/512012 000278E MASTERCARD -CITY OF CENTERVILLE CELL PHONE $57.65 4/5/2012 000278E MASTERCARD-CITY OF CENTERVILLE CELL PHONE $57.65 415/2012 000278E MASTERCARD -CITY OF CENTERVILLE SUPPLIES $38,54 4/5/2012 000278E MASTERCARD-CITY OF CENTERVILLE SUPPLIES $359,89 4/5/2012 000276E MASTERCARD -CITY OF CENTERVILLE FUEL $218,68 415/2012 040278E MASTERCARD -CITY OF CENTERVILLE VEHICLES REPAIR $1,717.05 415/2012 000278E MASTERCARD -CITY OF CENTERVILLE MAINT. SUPPLIES $81.31 4/5/2012 000278E MASTERCARD-CITY OF CENTERVILLE CELL PHONE $57,65 4/512012 000278E MASTERCARD -CITY OF CENTERVILLE G. BURMEISTER U OF M TRAIT. MAINT. TRAINING $50.00 4/5/2012 000278E MASTERCARD -CITY OF CENTERVILLE FUEL $192,92 4/5/2012 00027SE MASTERCARD -CITY OF CENTERVILLE SERIAL ATA CABLE $8,44 4/5/2012 000278E MASTERCARD-CM OF CENTERVILLE R. CHASE CLOTHING ALLOWANCE $261.92 41512012 000278E MASTERCARD -CITY OF CENTERVILLE R CHASE BUILDING INSPECTION TRAINING $140.00 4/5/2012 000278E MASTERCARD -CITY OF CENTERVILLE OFFICE SUPPLIES $30.62 4/5/2012 000278E MASTERCARD -CITY OF CENTERVILLE OPERATING SUPPLIES $172.09 4/5/2012 000278E MASTERCARD -CITY OF CENTERVILLE FUEL $50715 Check Nbr 00027U M6=8gA8D -C Z' QE CENTERVILLE 415/2012 000279E REV - TRAK - MERIDIAN BANK CONVENIENCE FEE FOR 8K WALK RUN _ S4 . 189 , 0 $1,40 4/512012 000279E REV - TRAK - MERIDIAN BANK CONVENIENCE FEES UTILITY PAYMENTS Qecck Nbr OOOZZ9 REV - TRAK -- MERIDIAN BAND_ _ ,. $11 02 4/9/2012 00028DE MINNESOTA DEPT OF REVENUE USE TAX -DOOR HANGERS $3.56 4/912012 000280E MINNESOTA DEPT OF REVENUE SALES TAX - COMDR WATER $193.00 4/9/2012 000280E MINNESOTA DEPT OF REVENUE USE TAX - LINKSYS 24 PORT SWITCH $9,38 4/912012 000280E MINNESOTA DEPT OF REVENUE USE TAX - AED REPLACEMENT KIT FOR CHARGE PAK $12.09 Checkbr 00 289 MINNESOTA DgPT OF REVENUE 218.00 4/11/2012 027151 AMUNDSEN, KEVIN PARK & REC MEETINGS - 1-4, 2 -1 & 3 -7 -12 $60.00 t br 027151 AMNDSEN.AEVIN 60.00 4111/2012 027152 ANOKA COUNTY PROPERTY RECORDS 14- 31-22 -43 -0059 - TRACIE MCBRIDE MEMORIAL PARK - $31.99 4111/2012 027152 ANOKA COUNTY PROPERTY RECORDS 23- 31 -22 -13 -0015 - 1880 MAIN ST - CITY HALL $155.53 4111/2012 027152 ANOKA COUNTY PROPERTY RECORDS 22 -31 -22-41 -0047 - HIDDEN SPRINGS PARK - PROPERTY TAX $33.06 4/11/2012 027152 ANOKA COUNTY PROPERTY RECORDS 24- 31 -22 -33 -0002 - 2085 CEDAR ST - PROPERTY TAXES 15 Check Nbr 027152 ANOKA CQUto MUPLRa $376.11 4/11/2012 027153 BRANCH, PATRICK PARK & REC MEETING 1-4 -12 Check Nbr 427153 BRANCH, E&OCK _ -- - •� . A20,00 4/11/2012 027154 CENTENNIAL LAKES POLICE DEPT POLICE SERVICES - APRIL 2012 Check r 7 NT NI AL L6M MjgE DEPT S55,083.9 4/1112012 027155 CENTERPOINT ENERGY 7087 -20TH AVE S - SERV THRU 3 -23 -12 $12.85 4/1112012 027155 CENTERPOINT ENERGY 6970 LAMOTTE DR • SERV THRU 3 -23 -12 $54.79 4/11/2012 027155 CENTERPOINT ENERGY 2085 W CEDAR ST - SERV THRU 3 -23 -12 $377.32 4/1112012 027155 CENTERPOINT ENERGY 1785 PELTIER LAKE DR - SERV THRU 3 -23 -12 $14.68 4/11/2012 027155 CENTERPOINT ENERGY 1880 MAIN ST - SERV THRU 3 -23 -12 $264 � Check Nbr 027155 �[NTEREOINT ENERGY _ . - - $723367 4/11/2012 027156 CITY OF CIRCLE PINES POLICE BUILDING PYMT $4,229.17 4/11/2012 027156 CITY OF CIRCLE PINES POLICE BUILDING PYMT 1 2. Qeck Nb r 027156 ga QF CIRCLE P N 4/11/2012 027157 CONNEXUS ENERGY 6900 20TH AVE LIFT STATION - SERV THRU 3 -14 -12 $63.44 4/11/2012 027157 CONNEXU5 ENERGY 7087 -20TH ST N - SERV THRU 3 -14 -12 $92.01 4/11/2012 027157 CONNEXUS ENERGY 7100 -20Th AVE N - TRAFSG - SERV THRU 3 -20 -12 $40.43 4/1112012 027157 CONNEXU5 ENERGY STREET LIGHTS - 395653- 219599 - SERV THRU 3 -28 -12 $113.59 4/11/2012 027157 CONNEXUS ENERGY 2085 W CEDAR ST - SERV THRU 3 -14-12 $353.89 4/11/2012 027157 CONNEXUS ENERGY 6800 20TH AVE - SCADIA - SERV THRU 3 -21 -12 $12.10 4/11/2012 027157 CONNEXUS ENERGY 6800 20TH AVE - SCADIA - SERV THRU 3 -21 -12 12. Eck Nbr 027157 CONNaUS ENERGY 1803.86 411112012 027158 DAVE KICHLER INSPECTIONS, INC. ELECTRICAL INSPECTIONS - heck Nbr 027158 DAVE KICHLEB IN _ $1.07 4/11/2012 027159 FLINT, JAMES P & Z MEETING - 1 -3 -12 b r OZ 7159 F E _ _ _- $20.00 4/11/2012 027160 GOPHER STATE ONE CALL INC MARCH 2012 SERVICES $24.75 4/11/2012 027160 GOPHER STATE ONE CALL INC MARCH 2012 SERVICES $24.75 jhr&k Nbr 027160 GOPHER STATE ONE CALL INC 09.50 411112012 027161 GRAHEK, JOHN PARK & REC MEETINGS -1-4, 2 -1 & 3-7 -12 ;heck Nbr 027161 JOHN -- - - - - -- - •- _ -• „ -` - 560.00 CITY OF CENTERVILLE Page 2 Check Detail - April 11, 2092 4/11/2012 027162 HAIDEN, MARK PARK & REC MEETINGS -1-4, 2 -1 & 3 -7 -12 Check Nbr 027162 HAIDEN_ MARK 4/11/2012 027163 IMAGE PRINTING & GRAPHICS _ _ - -- - BILLING SHEETS & ENVELOPES $400.22 4/11/2012 027163 IMAGE PRINTING & GRAPHICS BILLING SHEETS & ENVELOPES $400.22 4/11/2012 027163 IMAGE PRINTING & GRAPHICS BILLING SHEETS & ENVELOPES jjQQ,2 4 Chffj NUr 027163 IMAGE PRINTING G &gRRAPHIC5 _ $_ 1.200.68 4/11/2012 027164 INTERNATIONAL UNION OF OPERATI UNION DUES FOR APRIL 2012 Chic N-br 01'.7 OINTERNATIONAL UNIQN OFOPERATI $26.20 4/11/2012 027165 ISS _ _ - SYSTEM MONITORING - COMMERCIAL - r Check Nbr 027165 ISS _ $ 114.04 4/11/2012 027166 KILLMER ELECTRIC REPAIR WIRING IN STREET - LIGHT POLE IN THE SW CORNER ChB Nbr 027166 KLLLMER ELECTRIC _ _ _ $237.72 4/11/2012 027167 KOSKI, RUSSELL P & Z MEETING - 1 -3 & 2 -8 -12 Ch2cjk N, r 0271667 I Qf SV. RUSSELL _ $Igm 4/11J2012 027168 L ALLIER, LEON _ REIMBURSEMENT FOR WELL SEAL (GRANT) Check Nbr 02 8 .LALLIER. LEON $4131.70 4/11/2012 027169 LARSON, ERIC P & Z MEETING - 2 - - Checl Nbr 0271 -69 LALSON. ERIC 20.00 4/11/2012 027170 LEE, OLAF P & Z MEETING - 1 -3 & 2-8 -12 Check Nbr 027170 LEE. OLAF 4/11/2012 027171 METROPOLITAN COUNCIL ENVIROMEN MARCH 2012 - SAC M�00 Check Nbr 027171 METROPOLITAN COUNCIL_ ENVIROMEN_ 4/11/2012 027172 MONTAIN, MATTHEW _ P & Z MEETING - 1 -3 -12 - y A2 Check Nbr 027172 MQNTAIN M ATTH EW $2 4/11/2012 027173 MOSHER, DARRIN P & Z MEETING - 1 -3 & 2 -8 -12 Check Nbr 027173 MQSHER, DARRIN 00 4111/2012 027174 PETERSON, BRIAN _ PARK & REC MEETINGS 1 -4, 2 -1 L Check Nbr 027174_PETEMON. BRIAN _ - r _ � $ AA 4111/2012 027175 PRESS PUBLICATIONS CODE CHAPTER 156 ! $7 4/11/2012 027175 PRESS PUBLICATIONS MAY 9, 2012 PUBLIC NOTICE INFORMAITON MEETIN $5 4/11/2012 027175 PRESS PUBLICATIONS APRIL 22, 2012 - REGARING ASSESSMENT & CLASSIFC47ION OF 1.1 Check Nbr 027175_PRESS PUBLICATIONS .4181.35 4/11/2012 027176 SEELEY, SUZANNE PARK & REC MEETINGS - 1 -4, 2 -1 & 3 -7 -12 Ch eck NbL 02717fLSEELEY, ZANNE 4/11/2012 027177 STANTEC CONSULTING SERVICES IN GENERAL - SERV THRU 3 -20 -12 gheck Nbr 027177 STANTEC CONSULTING SERVICES IN _ _ X270.40 4111/2012 027178 SWEENEY, KRIS MILEAGE REIMBURSEMENT - BANK DEPOSITS $25.94 4/11/2012 027178 SWEENEY, KRIS MILEAGE REIMBURSEMENT - DELIVERY UTILITY BILLS TO POST $1.90 4/11/2012 027178 SWEENEY, KRIS MILEAGE REIMBURSEMENT - DELIVERY UTILITY BILLS TO POST $1.91 Check Nbr OZ7178_SWEENEY, KRIS S7g 4/1112012 027179 U.S. POSTAL SERVICE FIRST CLASS PRESORT PERMIT #20 rr $63.33 4/1112012 027179 U.S. POSTAL SERVICE FIRST CLASS PRESORT PERMIT #20 $63.33 4/12/2012 027179 U.S. POSTAL SERVICE FIRST CLASS PRESORT PERMIT #20 Sfa, 3q Check Nbr 027179 US POSTAL SERVICE $190.00 4/11/2012 027180 WARGO NATURE CENTER SKATE NIGHT - 2 -11 -12 FOR NATURALIST, SNOWSHOE RENTAL Qeck Nbr 027180 WARGO NATURE CENTER _ $100.w 4111/2012 027181 WOOD, TOM P & Z MEETING - 1 -3 -12 ChCQk Nbr Q27 WOOD, TOM � 520.00 Total Checks $74,362.06 CENTENNIAL FIRE DISTRICT Check Register- FIRE GL Page: 1 Check Issue Dates: Vi 712012.41512012 Apr 05, 2012 03:17PM Report Criteria: Report type: Summary GL Check Check Vendor P Is su e Date Number Number 03112 03/27/2012 5256 10290 0362 0312712012 5257 11565 03112 03/2712012 5258 30500 03112 03127/2012 6259 31008 03112 03/27/2012 5260 31137 03112 DW/2712012 5261 70578 04112 04105/2012 5262 80050 03di2 03/2712012 5263 120331 03112 0312712012 5264 120450 03112 0312712012 5265 131470 03112 03/27/2012 6266 160493 03112 03127/2012 6267 210405 03112 03/27/2012 5286 220200 03112 0312712012 3269 240100 04M2 04/05/2012 5270 11565 04112 04105/2012 5271 30485 04112 04/05/2012 5272 30490 04H 2 04/0512012 5273 30575 04112 04/0512012 5274 31008 04112 0410512012 5275 40100 04112 04/05/2012 5276 70578 04112 0410512012 5277 120450 04112 04/05/2012 5278 130297 04112 04/0512012 5279 130440 04112 0410512012 5280 930640 04112 0410512012 5281 131500 04112 04/05/2012 6282 160050 04112 04/05/2012 5283 190500 04112 0410512012 5284 200150 04112 04/0512012 5285 210232 04112 04/0512012 5286 220200 03112 03125/2012 2012003 210300 Grand Totals: M = Manual Check, V = Vold Check Payee ALEX AIR APPARATUS, INC ASPEN MILLS, INC CENTURY LINK COMCAST CONNEXUS ENERGY GRAINGER HENNEPIN TECHNICAL COLLIE LEAGUE OF MN CITIES INS TR CITY OF LINO LAKES MUNICIPAL EMERGENCY SERV PREMIUM WATERS, INC UNIFORMS UNLIMITED, INC VERIZON WIRELESS XCEL ENERGY ASPEN MILLS, INC CENTER MART CENTERPOINT ENERGY CITY OF CIRCLE PINES COMCAST PAT DEVANEY GRAINGER CITY OF LINO LAKES MARTIN- MCALLISTER CONSUL ME=TRO FIRE, INC MFSCt3 MY ALARM CENTER, LLC PAETEC SIGNS NOW THOMAS MOTORS, INC UNI- SELECT VERIZON WIRELESS US BANK Description EQUIP REPAIR UNIFORMS CENTERVILLE PHONES INTERNET STATION 1 ELECTRIC STATION 1 TOWELS TRAINING OLSON/STAFKI WORKERS COMP INS 2/12 -2113 JAN/FEB REIMBIlRSEMF,,NTS UNIFORMS BOTTLED WATER UNIFORMS CELL PHONES ELECTRIC STATION 2 UNIFORMS FUEL STATION 2 GAS 1ST QTR ACCOUNTING SERVIC INTERNET CENTERVILLE STATI REIMB CONFERENCE MEALS EQUIP REPL PART FURNACE REBATE FROM CEN ASSESSMENT BOOTS CERTIFICATION TESTS STATION 1 MONITORING PHONES STATION 2 OFFICE SUPPLIES 04 EXPEDITION REPAIR VEH PARTS COMMUNICATIONS VISA -FEB CHARGES Check Amount 408.90 760.30 56.06 94.00 408.24 221.38 .00 V 36,208.00 36,353.05 46.27 26.59 263.36 239.08 549.92 150.72 336.95 238.00 1,575.00 94.00 47.75 457.89 800.00 250.00 339.09 300.00 102.04 148.74 115.84 463,13 48.76 78.06 653.85 81,824.97 J 7 � TO: Honorable Mayor and Council Members FROM: Staff SUBJECT: Encroachment Agreement — Fence, 7316 Brian Drive DATE: March 27, 2012 Property owners have submitted the appropriate fence permit application, sketch plan, encroachment agreement and fees for the permit and agreement. The Building Official has signed off on the permit and the location of the fence. 0 Metro., TO: Honorable Mayor & Council Members FROM: Parks & Recreation Committee SUBJECT: Park Usage Requests DATE: April 5, 2012 Centennial Soccer Club Request to use Laurie LaMotte Memorial Park soccer fields 1, 2 & 11 from April 1 — July 1, 2012. They submitted the appropriate forms, Parks & Recreation recommends approval and a detailed schedule will be provided by the Soccer Club. Following a recent conversation with the requester, he will be again submitting a request for the use of the same fields for Saturday practices and the use of Acorn Creek Park. (The use of LaMotte Park by this organization has been an annual occurrence). 2. Ms. Amy Anderson Request to use Hidden Spring Park for a wedding on June 16, 2012 from 3:30 — 5.30 p.m. Ms. Anderson submitted the appropriate form and Parks & Recreation recommends approval. A $100 deposit will be charged to the requester to ensure all trash is removed and the park is in the condition it was previous to usage. 3. Cub Scout Pack 432 Rocket Launch Request to use Laurie LaMotte Memorial Park June 2, 2012 with an alternative date of June 23, 2012 from 9:00 — 3:00 p.m. They submitted the appropriate forms, and Parks & Recreation recommends approval. (The use of LaMotte Park by this organization has been an annual occurrence). Items 1 & 3 have been reviewed by the Public Works Department. Item 3 has been forwarded to the Fire and Police Departments for their review. • Great Blue Heron Status, Peltier Lake Island, Feb 2012 Wayne LeBlanc The great blue herons on Peltier Island had a FANTASTIC 2011 summer! Thanks go to the city of Centerville, city of Lino Lakes, their Environmental Board, Anoka County Parks and volunteers for their support of the great blue herons. Protections and suport of the herons need to continue to try to reach previous numbers. Some people involved in helping the great blue herons are pictured: Marty Asleson (kneeling), Andy Von Duyke and his two daughters Anna and Ellie, Wayne LeBlanc, Joel Kilgore, Gary Averbeck and Dave Kilgore. Others, not pictured, include Barbara Bor, Glen Fuchs, Jeff Perry, Tim Sevcik, Ron Marier and Eaglebrook Church. Support includes flashing trees, installing signs, maintaining no -wake zone buoys and assembling stick piles for use as nesting material. Because of no leaves, exact nest counts can be made in winter. In 2011, the herons made 125 total nests and more than doubled the number of nests from 2010. In 2008, 2009, 2010 there were 58, 63, and 47 nests. On Jan 6, 2012, there were 125 total nests (121 full nests and 4 small nests). That's an increase of 80 nests or 170 %. That's just terrific! It might be that young herons from 2006 and on are maturing, coming back to the colony and nesting. Herons mature in their third spring. In 1996, the nest count was over 1,000, so there is a long way yet to reach original numbers. The herons moved into 36 new trees not occupied in 2010. The plan is to install new flashing in 15 of those trees with new nests to protect the herons from land bredators. The other 20 new nest trees already have flashin In June 2011, the estimated chick count was 70. But chick counts are difficult because foliage obscures the nests. Some years had storms and again, foliage and timing of the chick count can make for variable numbers. Years 2009 and 2010 may have been reduced due to weather or predators, it is difficult to say. In 2011, evidence shows great egrets returned for the first time in years which is more good news. From 2000 to 2010, the most nests seen in a tree were 5. 9 [11 se it Page I of 2 Teresa Bender From: Wayne LeBlanc [wayneleblanc @comcast.net) Sent: Sunday, April 01, 2012 10:52 PM To: Pat Branch Cc: Tom Wilharber; Ben Fehrenbacher; D Love: Steve King; Jeff Paar; John Grahek; Mark Haiden; Kevin Amundsen; Brian Peterson; Suzanne Seeley; Dallas Larson; Michael Jeziorski; Teresa Bender; Kris Sweeney Subject: RE: Peltier Lake Great Blue Heron Report, Feb 2012 The Wargo Nature Center does camp evening programs during the summer, some on certain wildlife, I did a talk on Herons and Cranes for Wargo. I'll think more about your question and if I come up with more, I'lI let you know. Thanks. Wayne LeBlanc From: Pat Branch [ma Tito :PBranch @CENTERVILLEMN.com] Sent: Friday, March 30, 2012 2:52 PM To: Wayne LeBlanc Cc: Tom Wilharber; Ben Fehrenbacher; D Love; Steve King; Jeff Paar, John Grahek; Mark Haiden; Kevin Amundsen; Brian Peterson; Suzanne Seeley; Dallas Larson; Michael leziorski; Teresa Bender; Kris Sweeney Subject: Re: Peltier Lake Great Blue Heron Report, Feb 2012 Wayne Thank you for the nice note. Do you have any specific programs in mind that would serve to make the public more aware of the wild life habitats in this area. The Parks and Rec Committee is always open to new ideas. Pat Branch On Mar 26, 2012, at 11:43 AM, Wayne LeBlanc wrote: City of Centerville, Please find attached a report on the status of the Great Blue Herons on Peltier Lake. If the City Council, Parks and Recreation or anyone else would like me to explain it further, please let me know and I will attend any meeting or workshop as schedules permit. In summary, the great blue herons on Peltier Island had a FANTASTIC 2011 summer! Thanks go to the city of Centerville and others for their support of the great blue herons and the sensitive environment. Protections and support of the herons need to continue to try to reach previous numbers. The number of great blue heron nests more than doubled from 2010 to 2011. I want to emphasize that the north part of Peltier Lake is very sensitive and requires law enforced protections. Not only the Great Blue Herons, but the aquatic plants and other wildlife there need protection. It took four long hard years of gut wrenching work to enact adequate protection and that guard must never be reduced or environmental damage could be the consequence. The city of Centerville was a key part of enacting that protection and this is an acknowledgement of that and another thanks again! Sincerely, Wayne LeBlanc 4/6/2012 12 Page 2 of 2 wavneleblancQcomcast.net 651- 426 -0168 hm 651- 785 -3775 cell 1677 Peltier Lake Drive Centerville, MN 55038 Please forward if I missed anyone. Thanks. This email has been scanned by the Symantec Email Security.cioud service. For more information please visit http://www.symanteccloud.com <HeronRptl 2O326.pdf> This email has been scanned by the Symantec Email Security. cloud service. For more information please visit http: / /www.symanteceloud.com 416!2012 13 CITY OF CENTERVILLE CENTERVILLE, MINNESOTA MANAGEMENT LETTER FOR THE YEAR ENDED DECEMBER 31, 2011 RS 1:.1,11 Gerl,�,J'lffl Public Accotattowts & 6'onsahanis CITY OF CENTERVILLE CENTERVILLE, MINNESOTA MANAGEMENT LETTER FOR THE YEAR ENDED DECEMBER 31, 2011 , �11 I rK • r,&l- YE UT w tali, ed MI/Vic 11croruttallis & Coasultaza's 5201 Eden Avenue Suite 250 Edina, MN 55436 Management, Honorable Mayor and Council City of Centerville, Minnesota March 28, 2012 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 Centerville, Minnesota (the City), for the year ended December 31, 2011. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, 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 November 11, 2011. 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 As stated in our engagement letter, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with accounting principles generally accepted in the United States of America. Because an audit is designed to provide reasonable, but not absolute, assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, fraud or illegal acts may exist and not be detected by us. 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 over financial reporting 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 A deficiency in internal control over financial reporting 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. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all such deficiencies have been identified. We did not identify any deficiencies in internal control that we consider to be material weaknesses. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 2 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 compliance with certain provisions of laws, regulations, contracts and grants, 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. 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. We noted no instances of noncompliance with 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. The requirements of GASB statements No. 54 were adopted for the year ended December 31, 2011. 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. The most sensitive estimates affecting the financial statements were capital asset basis, and depreciation. Management's estimate of depreciation is based on estimated useful lives of the assets. The estimate of historical cost is based on engineers' estimates and deflated current value. We evaluated the key factors and assumptions used to develop these estimates in determining that they are 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. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 3 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 March 28, 2012. 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 City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 4 Financial Position and Results of Operations Our principal observations and recommendations are sunnnarized 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, 2011. General Fund The General fund is used to account for resources traditionally associated with government, which are not required legally or by sound principal management to be accounted for in another fund. The General fund balance increased $73,910 from 2010. The fund balance of $1,142,321 is 55 percent of the 2012 budgeted expenditures. The total General fund budget is $2,054,700 for 2011. 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. At the current level, the fund balance is above the minimum but Council has acknowledged the amount. Council adopted a fund balance resolution and the City is in compliance with this resolution. The Office of the State Auditor (the OSA) has issued a Statement ofPosition 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. The purposes and benefits of an adequate fund balance are as follows: • Expenditures are incurred somewhat evenly throughout the year. However, 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 governmental fund expenditures. • The City is vulnerable to legislative actions at the State and Federal level. The State continually adjusts the local government aid and property tax credit formulas. We also have seen the State mandate levy limits for cities over 2,500 in population. 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. 952.835.9090 • Fax 952.835.3261 www.aemcpas.com City of Centerville March 28, 2012 Page 5 A table summarizing the General fund balances in relation to budgeted expenditures and transfers out follows: Fund Balances as a Percent of Next Year's Budget $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 go Actual Fund Balance Budget We have compiled a peer group average derived from information available on the website of the Office of the State Auditor for Cities of the 4th class which have populations between 2,500 and 10,000. In 2010, the average General fund balance as a percentage of expenditures was 67 percent. Based on a comparison to the peer groups, the City's General fund balance is lower than average but close to the recommended range. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn 2007 2008 2009 2010 2011 2012 Percent Total General of Fund Fund Balance Budget Fund Balance to Year December 31 Year Budget Budget 2007 $ 1,435,164 2008 $ 2,441,600 59 % 2008 1,157,516 2009 2,692,286 43 2009 1,231,326 2010 2,184,430 56 2010 1,068,411 2011 2,054,700 52 2011 1,142,321 2012 2,091, 800 55 Fund Balances as a Percent of Next Year's Budget $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 go Actual Fund Balance Budget We have compiled a peer group average derived from information available on the website of the Office of the State Auditor for Cities of the 4th class which have populations between 2,500 and 10,000. In 2010, the average General fund balance as a percentage of expenditures was 67 percent. Based on a comparison to the peer groups, the City's General fund balance is lower than average but close to the recommended range. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn 2007 2008 2009 2010 2011 2012 City of Centerville March 28, 2012 Page 6 A summary of the 2011 operations is as follows: Revenues Expenditures Excess of revenues over expenditures Other financing sources Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Original Final Budgeted Budgeted Actual Variance with Amounts Amounts Amounts Final Budget $ 2,054,700 $ 2,054,700 $ 2,081,543 $ 26,843 2,054,700 2,054,700 1,994,013 60,687 - - 87,530 87,530 - - 12,480 12,480 - - (26,100) (26,100) - - (13,620) (13,620) - - 73,910 73,910 Fund balances, January 1 1,068,411 1,068,411 1,068,411 - Fund balances, December 31 $ 1,068,411 $ 1,068,411 $ 1,142,321 $ 73,910 • Revenues were over budget by $26,843 for the year. General property taxes had the largest budget variance, as this category was over budget by $25,204. • Expenditures were under budget by $60,687 for the year. This was mainly due to budget for capital outlay not purchased in 2011. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 7 A more detailed comparison of General fund revenues and transfers for the past three years is as follows: Percent of Source 2009 2010 2011 Total Per Capita Taxes $ 1,961,993 $ 1,651,906 $ 1,698,512 81.2 % $ 448 Licenses and permits 138,121 97,207 111,842 5.3 29 Intergovernmental 182,458 155,003 163,244 7.8 43 Charges for services 3,607 4,408 8,810 0.4 2 Fines and forfeitures 28,836 36,028 26,990 1.3 7 Special assessments 43,864 28,090 20,350 1.0 5 Interest on investments 10,397 13,677 17,483 0.8 5 Miscellaneous 35,052 21,325 34,312 1.6 9 Transfers in 250,144 26,490 12,480 0.6 3 Total revenues and transfers $ 2,654,472 $ 2,034,134 $ 2,094,023 100.0 % $ 551 The sources of General fund revenues are presented graphically as follows: Revenues and Transfers in $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 2009 2010 2011 Taxes Licenses and permits , dw , 111111^ Intergovernmental Other 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 8 A sunniiary of the past three years General fund expenditures and transfers is as follows: Percent Peer of Per Group Per Program 2009 2010 2011 Total Capita Capita Current General government $ 500,119 $ 518,632 $ 521,796 25.8 % $ 138 $ 123 Public safety 1,060,001 1,054,045 1,018,072 50.4 268 204 Public works 366,734 354,194 322,042 15.9 85 108 Culture and recreation 99,408 79,131 89,934 4.5 24 47 Economic development 6,533 399 7,628 0.4 2 4 Miscellaneous 16,516 5,830 5,709 0.3 2 15 Total current 2,049,311 2,012,231 1,965,181 97.3 519 501 Capital outlay 166,916 178,185 22,100 1.1 6 18 Debt service 6,535 6,633 6,732 0.3 2 - Transfers out 357,900 - 26,100 1.3 7 - Total expenditures and transfers $ 2,580,662 $ 2,197,049 $ 2,020,113 100.0 % $ 534 $ 519 The above chart compares the amount the City spends per capita, in comparison to a peer group. The peer group average is derived from information available on the website of the Office of the State Auditor for Cities of the 4th class which have populations between 2,500 and 10,000. The function/program of the expenditures and transfers are presented graphically as follows: Expenditures and Transfers Out $1,200,000 $1,000,000 $ 800,000 $600,000 $400,000 $200,000 2009 2010 2011 .. General government Public safety uMa° Public works Other 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 9 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 statute or local ordinance to finance particular functions or activities of government. A summary of year end fund balances for all special revenue funds follows: Fund Nomnajor Cable T.V. Fund Balances December 31, Increase 2011 2010 (Decrease) $ 25,453 $ 24,662 $ 791 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. A summary of year end fund balances (deficits) for all capital projects funds follows: Fund Major Park Nonmajor 2009 Street & Utility Improvements Street Maintenance Pedestrian Trail Ways 2007 Downtown Redevelopment CDBG Water Services Fund Balances (Deficits) December 31, Increase 2011 2010 (Decrease) $ (1,071,023) $ (1,071,510) $ 487 - 47,918 (47,918) 26,100 - 26,100 7,426 545,086 (537,660) 59,391 125,716 (66,325) - (5,400) 5,400 Total $ (978,106) $ (358,190) $ (619,916) The City should annually evaluate the status of each project to determine if the fund should be closed or if additional funding sources will be needed for deficits. Each deficit indicates a funding shortfall and all will eventually need to be eliminated either by future charges or by transfers from other funds. The deficit fund balance in the Park fund of $1,071,510 is mostly due to a transfer out of $825,000 to the Pedestrian Trial Ways fund for the funding project plan and loan between funds. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 10 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: • PropeLty 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: Fund Cash and Temporary Total Investments Assets Bonds Outstanding Maturity 309 Joint Police Station 2005A $ 54,155 $ 61,924 $ 560,585 2021 348 G.O. Crossover Bonds of 2009B 521,385 843,619 2,290,000 2018 349 G.O. Improvement Bonds of 2011A 365,181 983,740 2,760,000 2019 351 G.O. Improvement Bonds of 2009A 663,968 1,543,817 3,715,000 2025 Total $ 1,604,689 $ 3,433,100 $ 9,325,585 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 11 Enterprise Funds Water Fund The results of the operations and cash position of the Water fund for the past three years are as follows: 2009 2010 2011 Total Percent Total Percent Total Percent Operating revenues $ 298,999 100.0 % $ 305,056 100.0 % $ 277,217 100.0 % Operating expenses 367,259 122.8 345,071 113.1 373,184 134.6 Operating loss (68,260) (22.8) (40,015) (13.1) (95,967) (34.6) Nonoperating revenues 49,515 16.6 175,709 57.6 75,755 27.3 Income (loss) before contributions and transfers (18,745) (6.2) 135,694 44.5 (20,212) (7.3) Transfers out (229,121) (76.6) - - - - Change in net assets $ (247,866) __L82.8L % $ 135,694 44.5 % $ (20,212) 7.3L Cash and temporary investments $ 663,584 $ 961,881 $ 1,074,848 Water Fund Operations $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $(200,000) S(400,000) 2009 2010 2011 uuuuu Operating revenues uiiiiii Operating expenses IIIIIIII Nonoperating revenues IIIIIIII Change in net assets IIIIIIIIII Cash and temporary investments The cash balance has increased over the prior year mainly due to positive cash flow from operations and an increase in special assessment revenue. Rates are analyzed each year by staff. This is a good practice and should be continued. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 12 Sewer Fund The results of operations and cash position of the Sewer fund for the past three years are as follows: 2009 2010 Operating revenues Operating expenses Operating loss Nonoperating revenues Loss before contributions and transfers Transfers out Change in net assets Cash and temporary investments $1,200,000 $1,000,000 $ 800,000 $600,000 $400,000 $200,000 S(200,000) $(400,000) 2011 Total Percent Total Percent Total Percent $ 322,369 100.0 % $ 319,947 100.0 % $ 337,785 100.0 % 440,936 136.8 422,596 132.1 438,610 129.8 (118,567) (36.8) (102,649) (32.1) (100,825) (29.8) 82,101 25.5 60,832 19.0 51,431 15.2 (36,466) (11.3) (41,817) (13.1) (49,394) (14.6) (140,492) (31.9) - - - - $ (176,958) (432) % $ (41,817) (13.1) % $ (49,394) (14.6) $_1,046 290 $ 169,273 $ 222,280 Sewer Fund Operations 111111 Operating revenues ll"' Operating expenses 111111 Nonoperating revenues 11111111 Change in net assets 111111111 Cash and teMj)orary investments 2009 2010 2011 The Sewer fund continues to operate at a loss in 2011 but cash flow was positive since depreciation is approximately $188 thousand of the total expenses.. The City needs to continue monitoring cash flow and review rates annually to aim towards an operating income. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 13 Storm Water Fund The results of operations and cash position of the Storm Water fund for the past three years are as follows: 2009 2010 2011 Storm Water Fund Operations $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $(100,000) $(200,000) $(300,000) S(400,000) 1111111 Operating revenues 11111111 Operating expenses 1111111 Nonoperating revenues IIIIIIII Change in net assets uuuui Cash and temporar investments 2009 2010 2011 The storm water fund cash balance decreased during the year, mainly due to transfers out of $99,500 for project costs and an increase in operating expenses. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn Total Percent Total Percent Total Percent Operating revenues $ 61,911 100.0 % $ 62,392 100.0 % $ 75,719 100.0 % Operating expenses 85,168 137.6 122,475 196.3 85,167 112.5 Operating loss (23,257) (37.6) (60,083) (96.3) (9,448) (12.5) Nonoperating revenues 17,846 28.8 5,206 8.3 2,475 3.3 Loss before contributions and transfers (5,411) (8.8) (54,877) (88.0) (6,973) (9.2) Transfers out (99,500) - (209,500) - (99,500) (131.4) Change in net assets $ (104,911) (8.8) % $ (264,377) (88.0) % $ (106,473) (140.6) Cash and temporary investments $ 566,773 $ 189,770 $ 120,592 Storm Water Fund Operations $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $(100,000) $(200,000) $(300,000) S(400,000) 1111111 Operating revenues 11111111 Operating expenses 1111111 Nonoperating revenues IIIIIIII Change in net assets uuuui Cash and temporar investments 2009 2010 2011 The storm water fund cash balance decreased during the year, mainly due to transfers out of $99,500 for project costs and an increase in operating expenses. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 14 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. Different peer group averages were used for Cities of the 4th class (population 2,500 — 10,000). 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. Ratio Calculation Source 2008 2009 2010 2011 Debt to assets Total liabilities /total assets Government -wide 29% 33% 28,'Yo 23% 34% 34% 37% N /A Debt per capita Bonded debt /population Government -wide 2,045 2,947 2,159 $ 2,677 $ 2,713 $3,125 NIA Taxes per capita Tax revenues /population Government -wide $ 50 $ `> 18, 433 772 $ 401 $ 399 $ 477 NIA Current expenditures per capita Governmental fund current Governmental funds $ 5 3 8, $ 545 $ 525 `> ` "" 8, expenditures /population $ 66,E $ 625 $ 624 NIA Capital expenditures per capita Governmental fund capital Governmental funds $ 56A $ 826) $ X70 76) expenditures /population $ 323 $ 3 $ 265 NIA Capital assets % left to Net capital assets/ Government -wide 8n% 8,2% 8,2% 79% depreciate - Governmental gross capital assets 70% 65% 61% NIA Capital assets % left to Net capital assets/ Government -wide 78,'Yo 75% 75% 6) 9% depreciate - Business -type gross capital assets 67% 67% 59% NIA RepreseVi s 'a: ➢w City of CenAe ville 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 15 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 financed with outstanding debt). 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. 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. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 16 Future Accounting Standard Changes GASB Statement No. 60 - Accounting and Financial Reporting for Service Concession Arrangements Summary The objective of this Statement is to improve financial reporting by addressing issues related to service concession arrangements between a transferor (a government) and an operator (governmental or nongovernmental entity) in which (1) the transferor conveys to an operator the right and related obligation to provide services through the use of infrastructure or another public asset (a "facility ") in exchange for significant consideration and (2) the operator collects and is compensated by fees from third parties. This Statement also provides guidance for governments that are operators in a service concession arrangement. This Statement requires disclosures about a service concession arrangement including a general description of the arrangement and information about the associated assets, liabilities, and deferred inflows, the rights granted and retained, and guarantees and commitments. The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2011. The provisions of this Statement generally are required to be applied retroactively for all periods presented. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement improve financial reporting by establishing recognition, measurement, and disclosure requirements for SCAB for both transferors and governmental operators, requiring governments to account for and report SCAB in the same manner, which improves the comparability of financial statements. GASB Statement No. 61 - The Financial Reporting Entity: Onvibus an Amendment of GASS Statements No. 14 and No. 34 Summary The objective of this Statement is to improve financial reporting for a governmental financial reporting entity. The requirements of Statement No. 14 and the related financial reporting requirements of Statement No. 34, were amended to better meet user needs and to address reporting entity issues that have arisen since the issuance of those Statements. This Statement modifies certain requirements for inclusion of component units in the financial reporting entity. This Statement also amends the criteria for reporting component units as if they were part of the primary government (that is, blending) in certain circumstances. This Statement clarifies the reporting of equity interests in legally separate organizations as well. It requires a primary government to report its equity interest in a component unit as an asset. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2012. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement result in financial reporting entity financial statements being more relevant by improving guidance for including, presenting, and disclosing information about component units and equity interest transactions of a financial reporting entity. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 17 Future Accounting Standard Changes — Continued GASB Statement No. 62 - Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FAS3 and A /CPA Pronouncements Summary The objective of this Statement is to incorporate into the GASB's authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements: 1. Financial Accounting Standards Board (FASB) Statements and Interpretations. 2. Accounting Principles Board Opinions. 3. Accounting Research Bulletins of the American Institute of Certified Public Accountants' (AICPA) Committee on Accounting Procedure. This Statement also supersedes Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting. The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2011. Earlier application is encouraged. The provisions of this Statement generally are required to be applied retroactively for all periods presented. How the Changes in This Statement Will Improve Financial Reporting The requirements in this Statement will improve financial reporting by contributing to the GASB's efforts to codify all sources of generally accepted accounting principles for state and local governments so that they derive from a single source. GASB Statement No. 63 - Financial Reporting of Deferred Outflows of Resource4 Deferred Inflows of Resource4 and Net Position Summary This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting by standardizing the presentation of deferred outflows of resources and deferred inflows of resources and their effects on a government's net position. 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn City of Centerville March 28, 2012 Page 18 Future Accounting Standard Changes — Continued GASB Statement No. 64 - Derivative Instruments Application of Hedge Accounting Ternination Provisions- an Amendment of GASS Statement No. 53 Summary The objective of this Statement is to clarify whether an effective hedging relationship continues after the replacement of swap counterparty or a swap counterparty's credit support provider. This Statement sets forth criteria that establish when the effective hedging relationship continues and hedge accounting should continue to be applied. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2011. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement enhance comparability and improve financial reporting by clarifying the circumstances in which hedge accounting should continue when a swap counterparty, or swap counterparty's credit support provider, is replaced This report is intended solely for the information and use of Council, management, others within the City, 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. The comments and recommendation in this report are purely constructive in nature, and should be read in this context. 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. 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 opportunity to be of service and for the courtesy and cooperation extended to us by your staff. March 28, 2012 Minneapolis, Minnesota ABDO, EICK & MEYERS, LLP Certified Public Accountants 952.835.9090 • Fax 952.835.3261 w w w.aemcpas. corn CITY OF CENTERV I LLE CENTERVILLE, MINNESOTA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2011 THIS PAGE IS LEFT BLANK INTENTIONALLY CITY OF CENTERV I L L E, MINNESOTA ANNUAL FINANCIAL REPORT TABLE OF CONTENTS FOR THE YEAR ENDED DECEMBER 31, 2011 INTRODUCTORY SECTION El ected and A ppoi nted Offi ci al s FINANCIAL SECTION Independent Auditor's Report 9 M anagement's D i scussi on and A nal ysi s 13 Basic Financial Statements Government -wide Financial Statements Statement of Net Assets 27 Statement of Activities 28 Fund Financial Statements Governmental Funds 74 Balance Sheet 32 Reconciliation of the Balance Sheet to the Statement of Net Assets 35 Statement of Revenues, Expendituresand Changes in Fund Balances (Deficits) 36 Reconciliation of the Statement of Revenues, Expendituresand Changes in Fund Balances (Deficits) to the Statement of Activities 38 General Fund Statement of Revenues, Expendituresand Changes in Fund Balances- Budget and Actual 39 Proprietary Funds Statements of Net Assets 40 Statements of Revenues, Expenses and Changes i n Fund Net Assets 42 Statements of Cash Flows 44 Notes to the Fi nanci al Statements 49 Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 70 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) 72 General Fund Schedule of Revenues, Expendituresand Changes i n Fund Balances- Budget and Actual 74 Debt Service Funds Combining Balance Sheet 80 Combining Scheduleof Revenues, Expendituresand Changesin Fund Balances (Deficits) 82 Summary Financial Report Revenues and Expenditures for General Operations - Governmental Funds 84 OTHER REQUIRED REPORTS Report on Minnesota Legal Compliance 87 -1- THIS PAGE IS LEFT BLANK INTENTIONALLY -2- INTRODUCTORY SECTION CITY OF CENTERV I LLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2011 -3- THIS PAGE IS LEFT BLANK INTENTIONALLY in CITY OF CENTERVILLE, MINNESOTA ELECTED AND APPOINTED OFFICIALS FOR THE YEAR ENDED DECEMBER 31, 2011 ELECTED Name Title Thomas Wilharber Mayor Steve King Council Member Ben Fehrenbacher Council Member Jeff Paar Council Member D. Love Council Member APPOINTED Dallas Larson City Administrator Teresa Bender City Clerk Mike Jeziorski Finance Director Term Expires 01/01/13 01/01/15 01/06/13 01/01/13 01/06/15 -5- THIS PAGE IS LEFT BLANK INTENTIONALLY w FI NANCIAL SECTION CITY OF CENTERV I LLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2011 -7- THIS PAGE IS LEFT BLANK INTENTIONALLY m V c II I -1 E 1 E S I..,i..p Gertifiedi Pid) a Accnrdraaws & Goaastill ntc 5201 Lden Avenue Suite 250 Edina, MN 55436 10U];1»01.]004 1 r_N1101109IN &W ;1 01 :4 Honorable Mayor and Council City of Centervi I le, M i nnesota 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 Centervi I le, Minnesota (the City), as of and for the year ended December 31, 2011, which col l ecti vel y comprise the City's basic financial statements as I isted in the table of contents. These financial statements are the responsi bi I i ty of the City's management. Our responsi bi I i ty is to express opinions on these financial statements based on our audit. The prior year comparative information has been derived from the City's 2010 financial statements and, in our report dated March 24, 2011, 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. 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 wel I as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, because of the effects of the matter discussed in the preceding paragraph, the governmental fund referred to above does not present fairly, inconformity with accounting principles generally accepted in the United States of America, the financial position of the City, as of December 31, 2011 or changes in financial position for the year then ended. Further, the City has not presented a management's discussion and analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not required to be part of, the basic financial statements. As descri bed i n the Note 7 to the basi c f nanci al statements, the City adopted the provisions of Governmental Accounti ng Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, for the year ended December 31, 2011. Adoption of the provision of this statement results in significant changes to the classifications of the components of fund balances. Accounting pri nci ples general ly accepted in the United States of America require that the Management's Discussion and Analysis on page 13 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is requi red by the Governmental Accounti ng Standards Board, who considers it to be an essential part of fi nanci al reporting for placing the basic financial statements in an appropri ate operational, economic, or historical context. We have appl ied 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. 952.835.9090 • Fax 952.835.3261 ww w.aemepas. eom in THIS PAGE IS LEFT BLANK INTENTIONALLY -10- Our audit was conducted for the purpose of forming an opinion on the basic financial statements that collectively comprise the City's basic financial statements as a whole. The introductory section, combining and individual fund financial statements and schedules 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 responsi bi I ity 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 basic financial statements and certain additional procedures, including comparing and reconci I i ng such i nformati on directly to the underlying accounting and other records used to prepare the financial statements or to the financial statementsthemselves, 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 awhole. The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. March 28, 2012 Minneapolis, Minnesota 952.835.9090 • Fax 952.835.3261 w ww. aemc pas. corn -11- Clcy. LLP ABDO, EICK & MEYERS, LLP Certified Public Accountants THIS PAGE IS LEFT BLANK INTENTIONALLY -12- Management's Discussion and Analysis As management of the City of Centervi I le, Minnesota, (the City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2011. Financial Highlights • The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $21,675,689 (net assets). Of this amount, $4,052,097(unrestri cted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. • The City's total net assets increased by $558,134. A further breakdown of net assets in chronicled under Government wide financial statement analysis. • At the end of the current fiscal year, unassigned fund bad ance for the General fund was $1,123,658. While these funds are not legally reserved, they are designated for future cash flow purposes. • The City's total debt decreased $1,489,389, during the current fiscal year. The decrease was mai ndy due to the refi nance of 2004B and 2007A bond issues and annual principal payments. • The City determined the requi rements of GASB 45 wi I I not have a material effect on the fi nancial statements. This i ncl udes the implicit ratecomponent of post - employment benefits. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This analysis containsother supplemented information in addition to the basic financial statements themselves. -13- The financial statements also include notes that explain some of the information in the financial statements and provide more detai led data. The statements are followed by a section of combining and individual fund financial statements and schedules that further explains and supports the information in the financial statements. Figure 1 shows how the required parts of this annual report are arranged and relate to one another. In addition to these required elements, we have included asection with combining and individual fund financial statements and schedules that provide details about nonmajor governmental funds, which are added together and presented in single columns in the basic financial statements. Figure 1 Required Componentsof the City's Annual Financial Report Management's Discussion and Analysis Basic Financial Required Statements Supplementary Information Government -wide Fund Notes to the Financial Financial Financial Statements Statements Statements Summary Detail -14- Figure 2 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management's discussion and analysis explai ns the structure and contents of each of the statements. Figure 2 M ajor features of the Government -wide and Fund Financial Statements -15- Fund Financial Statements Government -wide Governmental Funds Proprietary Funds Statements Scope Entire City government The activitiesof the City that Activities the City operates (except fiduciary funds) and are not proprietary or similar to private businesses, the City's component units fiduciary, such as police, fire such as the water and sewer and parks system Required financial . Statement of Net Assets • Bed ance Sheet • Statements of Net Assets statements . Statement of Activities • Statement of Revenues, • Statements of Revenues, Expenditures, and Expenses and Changes in Changes in Fund Fund Net Assets Balances . Statements of Cash Flows Accounting Basis and Accrual accounting and Modified accrual accounting Accrual accounting and measurement focus economic resources focus and current financial economic resources focus resources focus Typeof asset/liability All assetsand liabilities, both Only assets expected to be All assetsand liabilities, both information financial and capital, and used up and liabilitiesthat financial and capital, and short -term and long -term come due duri ng the year or short -term and long -term soon thereafter; no capital assets i ncl uded Type of in flow /out flow All revenues and expenses Revenues for which cash is All revenues and expenses information during year, regardless of received during or soon after during the year, regardless of w hen cash i s recei ved or pai d the end of the year; w hen cash i s recei ved or pai d expenditures when goods or services have been received and payment is due during the year or soon thereafter -15- Government -wide financial statements The government -wide financial statements are designed to provide readers with abroad overview of the City's finances, in a manner similar to a pri vate- sector busi tress. The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over ti me, i ncreases or decreases i n net assets may serve as a useful i ndi cator of whether the f nanci al position of the City is i mprovi ng or deteriorati ng. The statement of activities presents information showing how the City'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 tieing of related cash flows. Thus, revenues and expenses are reported in this 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 functionsof the City that are principally supported by taxes and intergovernmental revenue (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 include general government, public safety, public works, economic development, culture and recreation, miscellaneous and interest on long -term debt. The business -type activities of the City include water, sewer, and storm water. The government -wide financial statements start on page 27 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, 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 can be divided into two categories: governmental funds and proprietary funds. Governmental fund Governmental fundsare used to account for essentially the same functions reported asgovernmental activities in the government -wide fi nanci al statements. However, unlike the government -wide financial statements, governmental fund fi nanci al statements focus on near -term inflows and outflows of spendable resources, as wel I as on balances of spendable resources available at the end of the fiscal year. Such information maybe 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 fundswith similar information presented for governmental activitiesin the government -wide financial statements. By doing so, readers may better understand the long -term impact by 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 reconciliation to facilitate this comparison between governmental fundsand governmental activities. The City maintains 14 individual governmental funds, 5 of which are Debt Service funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General, Debt Service, and Park funds. Data from the other 7 governmental funds are combined into a single, aggregated presentation. I ndividual fund data for each of these non -mayor governmental funds is provided in the form of combining statementsor scheduleselsewhere in this report. The City adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided for the General fund to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 32 of this report -16- Proprietary fund. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as businese•type activities i n the government -wide fi nanci al statements. The City uses enterprise funds to account for its water, sewer and storm water. The proprietary fund provides the same type of i nformation as the government -wide fi nanci al statements, only i n more detai I. The proprietary fund fi nanci al statements provide separate i nformation for each of the enterprise funds. The basic proprietary fund financial statements start on page 40 of this report. Notes to the financial statements. The notes provide additional i nformation that is essenti al to a ful I understandi ng of the data provided i n the government -wide and fund fi nancial statements. The notes to the fi nanci al statements start on page 49 of this report. Other information. The combining statements referred to earlier in connection with non -major governmental funds are presented following the notes to financial statements. Combining and individual fund statements and schedules start on page 70 of this report. -17- 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, assets exceeded liabilities by $21,675,689 at the close of the most recent fiscal year. By far, the largest portion of the City's net assets ( 67 percent) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment); less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City'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. City of Centerville's Summary of Net Assets Governmental Activities Assets Current and other assets Capital assets Total assets Liabilities Noncurrent liabilities outstanding Other liabilities Total liabilities Net assets Invested in capital assets, net of related debt Restricted for Future expansion Debt service Unassigned Total net assets Increase 2011 2010 (Decrease) Business -type Activities Increase 2011 2010 (Decrease) $ 3,802,503 $ 5,654,390 $ (1,851,887) $ 3,707,148 $ 3,597,296 $ 109,852 17,012,545 16,118,270 894,275 6,913,746 7,186,009 (272,263) 20,815,048 21,772,660 (957,612) 10,620,894 10,783,305 (162,411) 9,363,568 10,852,586 (1,489,018) 14,268 13,897 371 357,096 559,903 (202,807) 25,321 12,024 13,297 9,720,664 11,412,489 (1,691,825) 39,589 25,921 13,668 7,686,960 5,308,831 2,378,129 6,913,746 7,186,009 (272,263) - - - 71,631 71,631 - 2,925,802 4,010,824 (1,085,022) - - - 456,169 1,040,516 (584,347) 3,595,928 3,499,744 96,184 $11,068,931 $10,360,171 $ 708,760 $10,581,305 $10,757,384 $ (176,079) An additional portion of the City's net assets ( 13.8 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($4,052,097) may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, both for the City as a whole, as well as for its separate governmental and business -type activities. The same situation held true for the prior year. -1& Governmental activities. Governmental activities decreased the City's net assets by $734,213. Key elements of this increase are as follows: City of Centerville's Changes in Net Assets Net assets, December 31 $11,094,384 $10,360,171 $ 734,213 $10,581,305 $10,757,384 $ (176,079) • Capital and operating grants, and contributions increased due grants for the irrigation project. • Expenses decreased a total of $543,609 with the largest decrease in public works due to capitalization of projects done in 2010. -19- Governmental Activities Business -type Activities Increase Increase 2011 2010 (Decrease) 2011 2010 (Decrease) Revenues Program revenues Charges for services $ 349,045 $ 402,377 $ (53,332) $ 691,020 $ 687,407 $ 3,613 Operating grants and contributions 305,362 70,805 234,557 2,971 - 2,971 Capital grants and contributions 835,568 232,360 603,208 96,421 201,120 (104,699) General revenues Taxes Property taxes /tax increments 1,675,130 1,678,293 (3,163) - - - Property taxes, levied for debt service 520,278 482,219 38,059 - - - Othertaxes 2,708 753 1,955 - - - Grants and contributions not restricted to specific programs 18,544 18,665 (121) - - - Unrestricted investment earnings 29,025 31,954 (2,929) 29,970 40,615 (10,645) Miscellaneous 380 4,692 (4,312) - - - Total revenues 3,736,040 2,922,118 813,922 820,382 929,142 (108,760) Expenses General government 536,926 536,362 564 - - - Public safety 1,024,690 1,059,361 (34,671) - - - Public works 443,229 1,333,377 (890,148) - - - Culture and recreation 712,987 231,500 481,487 - - - Economic development 15,074 15,078 (4) - - - Interest on long -term debt 368,421 469,258 (100,837) - - - Water - - - 373,184 345,071 28,113 Sewer - - - 438,610 422,596 16,014 Storm Water - - - 85,167 122,475 (37,308) Total expenses 3,101,327 3,644,936 (543,609) 896,961 890,142 6,819 Increase (decrease) in net assets before transfers 634,713 (722,818) 1,357,531 (76,579) 39,000 (115,579) Transfers 99,500 209,500 (110,000) (99,500) (209,500) 110,000 Change in net assets 734,213 (513,318) 1,247,531 (176,079) (170,500) (5,579) Net assets, January 1 10,360,171 10,873,489 (513,318) 10,757,384 10,927,884 (170,500) Net assets, December 31 $11,094,384 $10,360,171 $ 734,213 $10,581,305 $10,757,384 $ (176,079) • Capital and operating grants, and contributions increased due grants for the irrigation project. • Expenses decreased a total of $543,609 with the largest decrease in public works due to capitalization of projects done in 2010. -19- The fol lowing graph depicts various governmental activities and shows the program revenues and expenses directly related to those activities. $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Expenses and Program Revenues- Governmental Activities Revenues by Source - Governmental Activities Operating Capital grants and grantsand contributions contributions 260% 9.5% Charges for sery i ces 10.9% Taxes 52.2% -20- Business -type activities. Business -type activities decreased the City's net assets by $176,079, therefore accounting for 31.5 percent of the total decrease in net assets. Key elements of this decrease are as follows: Revenues by Source - Business -type Activities Capital grants and contributions 11.8% Imes for services 84.5% A further breakdown of expenses is shown below: Investment enmin aR Governmental Activities 2011 2010 Increase (Decrease) Business -type Activities Increase 2011 2010 (Decrease) Personnel costs $ 670,891 $ 715,586 $ (44,695) $ 238,177 $ 199,081 $ 39,096 Supplies 57,970 47,085 10,885 18,375 23,039 (4,664) Other charges for services 1,266,055 1,273,267 (7,212) 640,409 668,022 (27,613) Capital outlay 396,920 607,114 (210,194) - - - Total $ 2,391,836 $ 2,643,052 $ (251,216) $ 896,961 $ 890,142 $ 6,819 -21- Water Sewer Storm water 111 Program revenues 11111111 E nses „� Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental funds. The focus of the City'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'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. Activity in the City's major governmental funds is discussed below: Fund Balance (Deficit) December 31, Increase Major Funds 2011 2010 (Decrease) General The General fund balance has increased from 2010 and is very strong moving in 2012. Debt Service The Debt Service fund balance decreased $820,189. The City manages cash flow in all Debt Service funds and ensures adequate resources exist to fund future obligations. Park The Park fund balance decreased about $500 from previous year. 1,142,321 $ 1,068,411 $ 73,910 1,282,492 $ 2,102,681 $ (820,189) $ (1,071,023) $ (1,071,510) $ 487 As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $1,472,160, a decrease of $1,365,404 in comparison with the prior year. Approximately 10.4 percent of this total amount or $152,389 constitutes unassigned fund balance, which is available for spending at the City's discretion. The remainder of fund balance is either: 1) Nonspendable ($50,706), 2) Restricted ($1,269,065), 3) Committed ($14,263), or Assigned ($85,491). Proprietary funds. The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net assets of the enterprise funds at the end of the year amounted to $3,595,928. The total decrease in net assets for the funds was $176,079. Other factors concerning the finances of this fund have already been addressed in the discussion of the City's business -type activities. -22- General Fund Budgetary Highlights The City's General fund budget was not amended during the year. Revenues had a positive budget variance and expenditures had positive budget variance, and overall the General fund had a net positive budget variance of $50,000. Some of the significant variances can be briefly summarized as follows: • Total revenue had a positive budget variance of $26,843. • Total expenditures had a positive budget variance of $60,687. Capital outlay had a positive budgetary variance of $75,627 due to an expectation of purchasing capital outlay in 2011, which was actually purchased in late 2010. Capital Asset and Debt Administration Capital assets. The City's investment in capital assets for its governmental and business -type activities as of December 31, 2011, amounts to $31,614,633 (net of accumulated depreciation). This investment in capital assets includes land, structures, improvements, machinery and equipment, park facilities, roads, highways and bridges. Major capital asset events during the current fiscal year included the following: • Fire Hydrant Valve Replacement • Radio Read Devices and Upgrades Additional information on the City's capital assets can be found in Note 3C start on page 60 of this report. City of Centerville's Capital Assets (net of depreciation) -23- Governmental Activities Business -type Activities Increase Increase 2011 2010 (Decrease) 2011 2010 (Decrease) Land $ 3,308,023 $ 3,308,023 $ - $ 196,255 $ 196,255 $ - Buildings 1,627,438 1,627,438 - 414,000 414,000 - Constructioninprogress 1,391,196 4,038,169 (2,646,973) - - - Infrastructure 14,434,520 10,349,656 4,084,864 9,105,729 9,105,729 - Machinery and equipment 797,104 797,104 - 340,368 283,942 56,426 Total $21,558,281 $20,120,390 $ 1 $10,056,352 $ 9 $ 56,426 -23- Long -term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $9,325,585. While all of the City's bonds have revenue streams, they are all backed by the full faith and credit of the City. The City will have 41 percent of its principal debt retired within five years. City of Centerville's Outstanding Debt Governmental Activities 2011 2010 Increase (Decrease) Business -type Activities Increase 2011 2010 (Decrease) General obligation bonds $ 9,325,585 $10,809,439 $ (1,483,854) $ - $ - $ - Compensated absences payable 37,983 43,147 (5,164) 14,268 13,897 371 Total $ 9,363,568 $10,852,586 $ (1,489,018) $ 14,268 $ 13,897 $ 371 Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of taxable property within the City. Net debt is debt payable solely from ad valorem taxes. The taxable market value totals $356,139,100 which calculates to a debt margin of $10,684,173. Debt financed partially or entirely by special assessments is not applied against the City's debt limit, nor is debt financed by proprietary fund revenues. Currently the City has $560,585 of general obligation debt outstanding leaving a debt margin of $10,123,588. Additional information on the City's long -term debt can be found in Note 3D starting on page 62 of this report. Economic Factors and Next Year's Budgets and Rates • Residential building activity is expected to show slight improvement as the overall housing market improves. • The discontinued Market Value Homestead Credit program will shift property tax burdens to higher valued parcels, but will allow the City to receive all dollars levied. All of these factors were considered in preparing the City's budget for the 2012 fiscal year. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Administrator, City of Centerville, 1880 Main Street, Centerville, Minnesota, 55038. -24- GOVERNM ENT -WI DE Fl NANCIAL STATEM ENTS CITY OF CENTERV I LLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2011 -25- THIS PAGE IS LEFT BLANK INTENTIONALLY -26- CITY OFCENTERVILLE, MINNESOTA STATEMENT OF NET ASSETS DECEMBER 31, 2011 NET ASSETS Invested in capital assets, net of related debt Governmental Business -type Restricted for Activities Activities Total ASSETS Cable TV 25,453 - 25,453 Cash and temporary investments $ 3,456,964 $ 1,417,720 $ 4,874,684 Receivables $ 10,581,305 $ 21,675,689 Accrued interest 17,367 - 17,367 Delinquent takes 98,684 - 98,684 Accounts 50,975 193,204 244,179 Special assessments 1,865,277 134,248 1,999,525 Due from other governments 25,129 - 25,129 Internal balances (1,940,776) 1,940,776 - Inventories - 3,290 3,290 Prepaid items 50,706 17,910 68,616 Deferred charges 178,177 - 178,177 Capital assets not being depreciated 4,699,219 196,255 4,895,474 Capital assets net of accumulated depreciation 12,313,326 6,717,491 19,030,817 TOTAL ASSETS 20,815,048 10,620,894 31,435,942 LIABILITIES Accounts payable 68,775 3,445 72,220 Accrued salaries payable 20,604 7,057 27,661 Contracts payable 79,823 9,626 89,449 Due to other governments 400 5,193 5,593 Accrued interest payable 130,394 - 130,394 Deposits payable 57,100 - 57,100 Noncurrent liabilities- due withi n one year Compensated absences payable 33,186 11,027 44,213 Bonds payable 545,604 - 545,604 Noncurrent liabilities- due in more than one year Compensated absences payable 4,797 3,241 8,038 Bonds payable 8,779,981 - 8,779,981 TOTAL LIABILITIES 9,720,664 39,589 9,760,253 NET ASSETS Invested in capital assets, net of related debt 7,686,960 6,913,746 14,600,706 Restricted for Debt service 2,925,802 - 2,925,802 Cable TV 25,453 - 25,453 Unrestricted 456,169 3,595,928 4,052,097 TOTAL NET ASSETS $ 11,094,384 $ 10,581,305 $ 21,675,689 The notes to the financial statements are an integral part of this statement. -27- CITY OFCENTERVILLE, MINNESOTA STATEMENT OFACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2011 Business -type activities Water 373,184 277,516 2,971 59,698 Sewer 438,610 337,785 - 36,723 Storm water 85,167 75,719 - - Total busi ness-type acti vi ti es 896,961 691,020 2,971 96,421 Total $ 3,998,288 $ 1,040,065 $ 308,333 $ 931,989 General revenues Takes Property taxes, levied for general purposes Property taxes, levied for debt service Gambl i ng takes Grants and contributions not restricted to specific programs Unrestricted investment earnings M i scel I aneous Transfers- internal activities Total general revenues and transfers Change i n net assets Net assets, January 1 Net assets, December 31 The notes to the f nanci al statements are an i ntegral part of this statement. -28- Program Revenues Operating Capital Grants Charges for Grants and and Functions/Programs Expenses Services Contributions Contributions Governmental activities General government $ 536,926 $ 64,009 $ - $ - Publ i c safety 1,024,690 171,101 59,909 - Publicworks 443,229 90,394 245,453 835,568 Culture and recreation 712,987 19,855 - - Economic development 15,074 3,686 - - I nterest on long -term debt 368,421 - - - Total governmental activities 3,101,327 349,045 305,362 835,568 Business -type activities Water 373,184 277,516 2,971 59,698 Sewer 438,610 337,785 - 36,723 Storm water 85,167 75,719 - - Total busi ness-type acti vi ti es 896,961 691,020 2,971 96,421 Total $ 3,998,288 $ 1,040,065 $ 308,333 $ 931,989 General revenues Takes Property taxes, levied for general purposes Property taxes, levied for debt service Gambl i ng takes Grants and contributions not restricted to specific programs Unrestricted investment earnings M i scel I aneous Transfers- internal activities Total general revenues and transfers Change i n net assets Net assets, January 1 Net assets, December 31 The notes to the f nanci al statements are an i ntegral part of this statement. -28- Net (Expenses) Revenues and Changes in Net Assets Governmental Business -type Activities Activities Total $ (472,917) $ - $ (472,917) (793,680) - (793,680) 728,186 - 728,186 (693,132) - (693,132) (11,388) - (11,388) (368,421) - (368,421) (1,611,352) - (1,611,352) (32,999) (32,999) (64,102) (64,102) (9,448) (9,448) (106,549) (106,549) (1,611,352) (106,549) (1,717,901) 1,675,130 - 1,675,130 520,278 - 520,278 2,708 - 2,708 18,544 - 18,544 29,025 29,970 58,995 380 - 380 99,500 (99,500) - 2,345,565 (69,530) 2,276,035 734,213 (176,079) 558,134 10,360,171 10,757,384 21,117,555 $ 11,094,384 $ 10,581,305 $ 21,675,689 -29- THIS PAGE IS LEFT BLANK INTENTIONALLY -30- FUND FINANCIAL STATEMENTS CITY OF CENTERV I LLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER31, 2011 -31- CITY OFCENTERVILLE, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2011 101 300's 402 ASSETS Cash and temporary investments Receivables Accrued interest Delinquent takes Accounts Special assessments Due from other governments Prepaid items TOTAL ASSETS LIABILITIESAND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable Accrued salaries payable Advances from other funds Due to other governments Contracts payable Deferred revenue TOTAL LIABILITIES FUND BALANCES (DEFICITS) Nonspendable Committed Restricted Assigned Unassigned TOTAL FUND BALANCES (DEFICITS) TOTAL LIABILITIESAND FUND BALANCES (DEFICITS) The notes to the financial statements are an integral part of this statement. Debt General Service Park $ 1,661,535 $ 1,604,689 $ 37,289 17,367 - - 87,719 10,965 - 9,283 - - 86,711 1,778,566 - 15,534 - - 11,826 38,880 - $ 1,889,975 $ 3,433,100 $ 37,289 $ 119,330 $ - $ - 20,604 - - 455,560 376,904 1,108,312 400 - - 151,760 1,773,704 - 747,654 2,150,608 1,108,312 11,826 38,880 - 6,837 - - - 1,243,612 - 1,123,658 - (1,071,023) 1,142,321 1,282,492 (1,071,023) $ 1,889,975 $ 3,433,100 $ 37,289 -32- Other Total Governmental Governmental Funds Funds $ 153,451 $ 3,456,964 17,367 - 98,684 41,692 50,975 9,595 1,874,872 - 15,534 50,706 $ 204,738 $ 5,565,102 $ 6,545 $ 125,875 - 20,604 1,940,776 - 400 79,823 79,823 - 1,925,464 86,368 4,092,942 - 50,706 7,426 14,263 25,453 1,269, 065 85,491 85,491 - 52,635 118,370 1,472,160 $ 204,738 $ 5,565,102 -33- THIS PAGE IS LEFT BLANK INTENTIONALLY No CITY OFCENTERVILLE, MINNESOTA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS GOVERNMENTAL FUNDS DECEMBER 31, 2011 Total fund bad antes - governmental $ 1,472,160 Amounts reported for the governmental activities in the statement of net assets are different because Capi tal assets used i n governmental acti vi ti es are not f nanci al resources and therefore are not reported as assets in governmental funds. Cost of capital assets 21,558,281 Less: accumulated depreciation (4,545,736) Long -term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as l i a b i l i t i e s in the funds. Long -term liabilitiesat year end consist of: Bond principal payable (9,325,585) Lessdeferred charges net of accumulated amortization 178,177 Compensated absences payable (37,983) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds Special assessments 1,860,416 Delinquent takes 65,048 Governmental funds do not report a I i abi d i ty for accrued interest until due and payable (130,394) Total netassets - governmental activities $ 11,094,384 The notes to the fi nanci al statements are an integral part of this statement. -35- CITY OFCENTERVILLE, MINNESOTA STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES (DEFICITS) GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2011 101 300's REVENUES Taxes General property Gambl i ng L i censes and permits I ntergovern mental Charges for services Fi nes and forfei tures Sped al assessments Interest on investments Miscellaneous TOTAL REVENUES EXPENDITURES Current General government Publ i c safety Publ i c works Culture and recreation Economic development Capital outlay General government Publ i c works Culture and recreation Debt service Pri nci pal Interest and other TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) T ransfers in Bonds issued Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES (DEFICITS), JANUARY 1 FUND BALANCES (DEFICITS), DECEMBER 31 The notes to the fi naici al statements are ai integral part of this statement. El 101a Debt General Service $ 1,695,804 $ 520,278 2,708 - 111,842 - 163,244 58,725 8,810 - 26,990 - 20,350 373,214 17,483 18,697 34,312 - 2,081,543 970,914 487 521,796 - - 1,018,072 - - 322,042 6,445 - 95,643 - - 7,628 - - 1,243 - - 15,473 - - 5,384 - - 6,732 4,243,854 - - 401,830 - 1,994,013 4,652,129 - 87,530 (3,681,215) 487 12,480 101,026 - - 2,760,000 - (26,100) - - (13,620) 2,861,026 - 73,910 (820,189) 487 1,068,411 2,102,681 (1,071,510) $ 1,142,321 $ 1,282,492 $ (1,071,023) -36- Other Total Governmental Governmental Funds Funds $ 7,446 $ 2,223,528 - 2,708 - 111,842 288,915 510,884 - 8,810 - 26,990 - 393,564 4,660 41,327 9,595 43,907 310,616 3,363,560 - 521,796 - 1,018,072 10,041 338,528 12,248 107,891 7,446 15,074 - 1,243 374,820 390,293 537,767 543,151 - 4,250,586 - 401,830 942,322 7,588,464 (631,706) (4,224,904) 26,100 139,606 - 2,760,000 (14,006) (40,106) 12,094 2,859,500 (619,612) (1,365,404) 737,982 2,837,564 $ 118,370 $ 1,472,160 -37- CITY OFCENTERVILLE, MINNESOTA RECONCILIATION OFTHE STATEMENT OF REVENUES, EXPENDITURESAND CHANGESIN FUND BALANCES (DEFICITS) TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2011 Net change in fund balances- governmental funds $ (1,365,404) Amounts reported for governmental activities in the statement of activities are different because Capital outl ays are reported i n governmental funds as expenditures. However, i n the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlay 741,593 Depreciation expense (543,616) 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 si mi I ar items when debt i s fi rst issued, whereas these mounts are deferred and amortized in the statement of activities. Principal repayments 4,243,854 Debt issued or incurred (2,760,000) Amortization of deferred charges 23,483 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Capital assets contributed by developers 696,298 I nterest on long -term debt in the statement of activities differs from the mount 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. I n the statement of activities, however interest expense is recognized as the interest accrues, regardless of when it is due. 4,356 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 l i a b i l i t i e s of the current period. Special assessments (283,396) Property taxes (28,120) Some expenses reported i n the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences payable 5,165 Changeinnetassets - governmentalactivities $ 734,213 The notes to the financial statements are an integral part of this statement. -38- CITY OFCENTERVILLE, MINNESOTA STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2011 OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER Fl NANCI NG SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 12,480 12,480 (26,100) (26,100) (13,620) (13,620) 73,910 73,910 1,068,411 1,068,411 1,068,411 - $ 1,068,411 $ 1,068,411 $ 1,142,321 $ 73,910 The notes to the fi nanci al statements are an integral part of this statement. -39- Budgeted Amounts Actual Variancewith Original Final Amounts Final Budget REVENUES Takes General property $ 1,670,600 $ 1,670,600 $ 1,695,804 $ 25,204 Gambling - - 2,708 2,708 Licenses and permits 104,800 104,800 111,842 7,042 1 ntergovernmental 154,800 154,800 163,244 8,444 Charges for services 3,500 3,500 8,810 5,310 Fines and forfeitures 33,500 33,500 26,990 (6,510) Special assessments 12,000 12,000 20,350 8,350 Interest on investments 20,000 20,000 17,483 (2,517) Miscellaneous 55,500 55,500 34,312 (21,188) TOTAL REVENUES 2,054,700 2,054,700 2,081,543 26,843 EXPENDITURES Current General government 521,500 521,500 521,796 (296) Publicsafety 1,027,000 1,027,000 1,018,072 8,928 Publicworks 298,400 298,400 322,042 (23,642) Culture and recreation 87,900 87,900 95,643 (7,743) Economic devel opment 2,100 2,100 7,628 (5,528) Miscellaneous 5,500 5,500 - 5,500 Capital outlay 98,300 98,300 22,100 76,200 Debt service 14,000 14,000 6,732 7,268 TOTAL EXPENDITURES 2,054,700 2,054,700 1,994,013 60,687 EXCESS OF REVENUES OVER EXPENDITURES - - 87,530 87,530 OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER Fl NANCI NG SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 12,480 12,480 (26,100) (26,100) (13,620) (13,620) 73,910 73,910 1,068,411 1,068,411 1,068,411 - $ 1,068,411 $ 1,068,411 $ 1,142,321 $ 73,910 The notes to the fi nanci al statements are an integral part of this statement. -39- CITY OFCENTERVILLE, MINNESOTA STATEMENTS OF NET ASSETS PROPRIETARY FUNDS DECEMBER 31, 2011 AND 2010 LIABILITIES CURRENT LIABILITIES Accounts payable Business -type Acti vi ti es - Enterprise Funds 310 466 601 - 602 - - Water 2,881 Sewer 2,881 3,380 2011 2010 2011 2010 ASSETS Compensated absences payable 5,796 6,348 5,796 CURRENT ASSETS TOTAL CURRENT LIABILITIES 12,590 11,915 13,402 Cash and temporary investments $ 1,074,848 $ 961,881 $ 222,280 $ 169,273 Receivables Advances from other funds - - - Accounts 72,906 70,995 99,407 94,349 Sped al assessments Current 63 158 63 158 Del i nquent 9,149 6,124 - - Advances to other funds - - 2,050,776 2,038,474 Inventories 3,290 3,411 - - Prepad items 1,301 - 16,609 16,323 TOTAL CURRENT ASSETS 1,161,557 1,042,569 2,389,135 2,318,577 NONCURRENT ASSETS Special assessmentsreceivable - deferred 72,565 85,639 52,408 52,303 Capital assets Land 72,255 72,255 124,000 124,000 Buildings 138,000 138,000 276,000 276,000 Infrastructure 4,966,142 4,966,141 3,442,483 3,442,482 M achi nery and equipment 243,626 187,200 96,742 96,742 Less accumul eked depreciation (1,602,132) (1,420,254) (1,419,374) (1,300,445) Net capital assets 3,817,891 3,943,342 2,519,851 2,638,779 TOTAL NONCURRENT ASSETS 3,890,456 4,028,981 2,572,259 2,691,082 TOTAL ASSETS 5,052,013 5,071,550 4,961,394 5,009,659 LIABILITIES CURRENT LIABILITIES Accounts payable 3,135 1,228 310 466 Contracts payable - - - - Accrued salaries payable 2,881 3,380 2,881 3,380 Due to other governments 778 959 4,415 2,079 Compensated absences payable 5,796 6,348 5,796 6,348 TOTAL CURRENT LIABILITIES 12,590 11,915 13,402 12,273 NONCURRENT LIABILITIES Advances from other funds - - - - TOTAL LIABILITIES 12,590 11,915 13,402 12,273 NET ASSETS Invested in capital assets 3,817,891 3,943,342 2,519,851 2,638,779 Restricted for future expansion - - 71,631 71,631 Unrestricted 1,221,532 1,116,293 2,356,510 2,286,976 TOTAL NET ASSETS $ 5,039,423 $ 5,059,635 $ 4,947,992 $ 4,997,386 The notes to the fi nanci al statements are an integral part of this statement. .N Bud ness -type Acti vi ti es - Enterprise Funds 415 Storm Water Totals 2011 2010 2011 2010 $ 120,592 $ 189,770 $ 1,417,720 $ 1,320,924 20,891 18,438 193,204 183,782 - - 126 316 - - 9,149 6,124 - - 2,050,776 2,038,474 - - 3,290 3,411 - - 17,910 16,323 141,483 208,208 3,692,175 3,569,354 - - 124,973 137,942 - - 196,255 196,255 - - 414,000 414,000 - - 8,408,625 8,408,623 697,106 697,106 1,037,474 981,048 (121,102) (93,218) (3,142,608) (2,813,917) 576,004 603,888 6,913,746 7,186,009 576,004 603,888 7,038,719 7,323,951 717,487 812,096 10,730,894 10,893,305 - - 3,445 1,694 9,626 - 9,626 - 1,295 532 7,057 7,292 - - 5,193 3,038 2,676 1,201 14,268 13,897 13,597 1,733 39,589 25,921 110,000 110,000 110,000 110,000 123,597 111,733 149,589 135,921 576,004 603,888 6,913,746 7,186,009 - - 71,631 71,631 17,886 96,475 3,595,928 3,499,744 $ 593,890 $ 700,363 $ 10,581,305 $ 10,757,384 -41- CITY OFCENTERVILLE, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010 B usi ness-type Acti vi ti es- Enterprise Funds 601 602 Water Sewer OPERATING REVENUES Charges for services OPERATING EXPENSES Sal ari es and benefits Supplies Other services and charges Utilities M CES - disposal charges Depreciation TOTAL OPERATING EXPENSES OPERATING LOSS NONOPERATING REVENUES I nterest earni ngs I ntergovernmental Special assessrnents Hook up fees and unit charges M i scel I aneous revenue INCOME (LOSS) BEFORE TRANSFERS TRANSFERS OUT CHANGE IN NET ASSETS NET ASSETS, JANUARY 1 NET ASSETS, DECEMBER 31 $ 277,217 $ 305,056 $ 337,785 $ 319,947 97,548 90,448 101,590 90,334 16,462 20,248 1,222 1,522 62,152 38,982 17,794 26,233 15,144 15,068 3,197 2,977 - - 195,880 182,604 181,878 180,325 118,927 118,926 373,184 345,071 438,610 422,596 (95,967) (40,015) (100,825) (102,649) 12,787 9,779 14,708 25,630 2,971 - - - 36,168 109,992 18,567 23,889 23,530 55,926 18,156 11,313 75,755 175,709 51,431 60,832 (20,212) 135,694 (49,394) (41,817) (20,212) 135,694 (49,394) (41,817) 5,059,635 4,923,941 4,997,386 5,039,203 $ 5,039,423 $ 5,059,635 $ 4,947,992 $ 4,997,386 The notes to the financial statements are an integral part of this statement. -42- B usi ness-type Acti vi ti es- Enterprise Funds 5,206 415 241,747 (6,973) (54,877) Storm Water 39,000 Totals (209,500) 2011 2010 2011 2010 $ 75,719 $ 62,392 $ 690,721 $ 687,395 10,757,384 10,927,884 39,039 18,299 238,177 199,081 691 1,269 18,375 23,039 17,553 75,023 97,499 140,238 - - 18,341 18,045 - - 195,880 182,604 27,884 27,884 328,689 327,135 (9,448) (60,083) (206,240) (202,747) 2,475 5,206 29,970 40,615 - - 2,971 - 54,735 133,881 41,686 67,239 2,475 5,206 129,661 241,747 (6,973) (54,877) (76,579) 39,000 (99,500) (209,500) (99,500) (209,500) (106,473) (264,377) (176,079) (170,500) 700,363 964,740 10,757,384 10,927,884 $ 593,890 $ 700,363 $ 10,581,305 $ 10,757,384 -43- CITY OFCENTERVILLE, MINNESOTA STATEMENTS OF CASH FLOWS- CONTINUED ON THE FOLLOWING PAGES PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010 CASH FLOWS FROM OPERATI NG ACTIV ITI ES Recei pts f rom customers and users Payments to suppl i ers Payments to employees NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Increase (decry) in advances to other funds Return of grant proceeds Grant proceeds Transfers to other funds NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets Hook up fees and unit charges received Special assessments recei ved NET CASH PROVIDED BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM I NVESTI NG ACTIVITI ES I nterest received on i nvestments NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 Business -type A cti v i ti es - Enterprise Funds 601 602 Water Sewer 2011 2010 2011 2010 $ 275,605 $ 302,466 $ 332,727 $ 319,749 (93,212) (76,686) (216,199) (214,456) (98,599) (89,294) (102,641) (89,180) 83,794 136,486 13,887 16,113 - - (12,302) (951,307) 2,971 - - - 2,971 - (12,302) (951,307) (56,427) (10,255) - - 23,530 55,926 18,156 11,313 46,312 106,360 18,557 21,235 13,415 152,031 36,713 32,548 12,787 9,780 14,709 25,629 112,967 298,297 53,007 (877,017) 961,881 663,584 169,273 1,046,290 $ 1,074,848 $ 961,881 $ 222,280 $ 169,273 The notes to the fi naici al statements are an integral part of this statement. .. Business -type A cti v i ti es - Enterprise Funds 415 Storm Water Totals 2011 2010 2011 2010 $ 73,266 $ 62,166 $ 681,598 $ 684,381 (8,618) (77,187) (318,029) (368,329) (36,801) (18,188) (238,041) (196,662) 27,847 (33,209) 125,528 119,390 - 110,000 (12,302) (841,307) - (249,500) - (249,500) - - 2,971 - (99,500) (209,500) (99,500) (209,500) (99,500) (349,000) (108,831) (1,300,307) - - (56,427) (10,255) - - 41,686 67,239 - - 64,869 127,595 - - 50,128 184,579 2,475 5,206 29,971 40,615 (69,178) (377,003) 96,796 (955,723) 189,770 566,773 1,320,924 2,276,647 $ 120,592 $ 189,770 $ 1,417,720 $ 1,320,924 -45- CITY OFCENTERVILLE, MINNESOTA STATEMENTS OF CASH FLOWS- CONTINUED PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010 Business -type A cti v i ti es - Enterprise Funds 601 602 Water Sewer RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating loss Other i ncome rel eked to operations Adj ustments to reconci I e operati ng I oss to net cash provided (used) by operating activities Depreciation (Increase) decrease in assets Accounts receivable Inventories Prepaid items I ncrease (decrease) i n I i abi I i ti es Accounts payable Contracts payable Accrued salaries payable Compensated absences payable Other postemployment benefits payable Due to other governments NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 2011 2010 2011 2010 $ (95,967) $ (40,015) $ (100,825) $ (102,649) 299 12 - - 181,878 180,325 118,927 118,926 (1,911) (2,602) (5,058) (198) 121 58 - - (1,301) - (286) (1,106) 1,907 (256) (156) 239 (499) 235 (499) 235 (552) 919 (552) 919 - (2,332) - (2,332) (181) 142 2,336 2,079 $ 83,794 $ 136,486 $ 13,887 $ 16,113 The notes to the f naici al statements are an i ntegral part of this statement. EN Business -type A cti v i ti es - Enterprise Funds 415 Storm water Totals 2011 2010 2011 2010 $ (9,448) $ (60,083) $ (206,240) $ (202,747) - - 299 12 27,884 27,884 328,689 327,135 (2,453) (226) (9,422) (3,026) - - 121 58 - - (1,587) (1,106) - (895) 1,751 (912) 9,626 - 9,626 - 763 19 (235) 489 1,475 92 371 1,930 - - - (4,664) - - 2,155 2,221 $ 27,847 $ (33,209) $ 125,528 $ 119,390 -47- THIS PAGE IS LEFT BLANK INTENTIONALLY MR CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting entity The City of Centerville, Minnesota (the City), operates under the "Optional Plan A" form of government as defined in the State of Minnesota statutes. Under this plan, the government of the City is di rected by a Council composed of an elected Mayor and four elected Council Members. The Council exercises legislative authority and determines all matters of policy. The Council appoints personnel responsible for the proper administration of all affairs relating to the City. The City has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and ( 1 ) the ability of the primary government to i mpose its w i l l on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the primary government. The City does not have any component units. B. Government -wide and fund financial statements The government -wide financial statements (statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City. Governmental activities which normally are supported by taxes and intergovernmental revenues, are reported separately from business- typeactivities; which rely to asignificant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues i ncl ude 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirementsof a particular function or segment. Taxes and other items not properly included among program revenues are reported i nstead as general revenues Separate f i nanci al statements are provi ded for governmental funds and propri etary f unds. M I or i ndi vi dual governmental funds and major i ndi vi dual enterprise funds are reported as separate col umns i n the fund f nancial statements. .. CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- CONTINUED C. Measurement focus, basis of accounting and financial statement presentation The government -wide f nanci al statements are reported using the econonic 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 l i a b i l i t y 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 si mi I ar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund f nanci al statements are reported usi ng the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and avai I able. Revenues are considered to be available when they are col I ecti bl e wi thi n the current period or soon enough thereafter to pay I i abi I ities of the current period. For this purpose, the City considers revenues 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 servi ce expenditures, as well as expenditures related to compensated absences and clai ms and j udgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be suscepti ble to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Revenue resulting f rom exchange transacti ons, in which each party givesand recei ves essenti al I y equal value, is recorded on the accrual basiswhen the exchange takes place. On a modified accrual basis, revenue is recorded i n the year i n whi ch the resources are measurabl e and become avai I abl e. 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 i n 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 i ncl ude ti mi ng requirements, which specify the year when the resources are requi red to be used or the year when use is f rst permitted, matchi ng requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requi rements, i n which the resources are provided to the City on a rei mbursement 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 recei ved before eligibility requi rements are met are al so recorded as deferred revenue. On the modified accrual basis, recei vabl es that will not be collected within the available period have also been reported as deferred revenue in the fund financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of Ameri ca requi res management to make esti mates and assumptions that affect certai n reported mounts and disclosures. Accordingly, actual results could differ from those estimates. -50- CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- CONTINUED The City reports the following major governmental funds: The General fund isthe City's primary operating fund. It accounts for all financial resourcesof the City, except those required to be accounted for in another fund. The Debt Service fund accounts for the resources accumul ated and payments made for pri nci pal and i nterest on long -term general obligation debt of governmental funds. The Park fund captures al I park capital items and recei ves al I the City's park dedication fees. The City reports the folIowing major propri etary f unds: The Water fund accounts for the acti vities of the water distri bution system the City mai ntai ns. The Sewer fund accounts for the activities of the City's sewage collection operations. The Storm Water fund accounts for the acti vitiesof the City's storm water collection operations. 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 GASB. Governments also have the option of folIowi ng subsequent private - sector guidance for thei r busi ness -type acti vi ties and enterprise funds, subject to this same I i mitati on. The City has elected not to fol low subsequent private - sector guidance. As a general rule the effect of i nterfund acti vi ty has been el i mi nated from government -wi de f nanci al statements. Exceptions to this general rule are charges between the City's water and sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues i ncl ude 1) charges to customers or applicants for goods, services or pri vi leges provided, 2) operating grants and contribution, and 3) capital grants and contributions, including special assessments. I nternal ly dedicated resources are reported as general revenues rather than as program revenues. Li kewise, general revenues i ncl ude al I taxes. Proprietary funds disti nguish operating revenues and expenses from nonoperating items. Operati ng revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's pri nci pal ongoi ng operations. The pri nci pal operati ng revenues of the Ci ty enterpri se funds are charges to customers for sales and servi ces. Operati ng expenses for enterpri se funds i ncl ude the cost of sal es and servi ces, admi ni strati ve expenses and depreciation on capital assets. All revenues and expenses not meeting thi s def i ni ti on are reported as nonoperati ng revenues and expenses. When both restricted and unrestricted resources are avai I abl e for use, it i s the City's pol i cy to use restricted resources f rst, then unrestri cted resources as they are needed. -51- CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- CONTINUED D. Assets, liabilities and net assets or equity Deposits and investments The City's cash and cash equi valents are considered to be cash on hand, demand deposits and short-term i nvestments with origi nal maturities of three months or less from the date of acquisition. Cash ball ancesfrom all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earningsfrom such investments are allocated on the basis of applicable participation by each of the funds. The City may also i nvest idle funds as authorized by M i nnesota statutes, as fol lows: 1. Direct obl i gati ons or obl i gati ons guaranteed by the United States or itsagencies. 2. Shares of i nvestment companies registered under the Federal I nvestment Company Act of 1940 and recei ved the highest credit rating, rated in one of the two highest rating categories by astatistical rating agency, and have a fi nal maturity of thi rteen months or less. 3. General obligations of a state or local government with taxing powers rated "A" or better; revenue obligations rated "AA" or better. 4. General obligations of the Minnesota Housing Finance Agency rated "A" or better. 5. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. 6. 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. 7. Repurchase or reverse repurchase agreements and securities lendi ng agreements with fi nancial 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. 8. Guaranteed investment contracts (GI C's) issued or guaranteed by a United States commercial bank, adomestic 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. Accounts receivable Accounts receivable include amounts billed for services provided before year end. UnbiIled utility enterprise fund recei vables are also included for services provided in 2011. The City annually certif ies del i nquent water and sewer accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts establ i shed. I nterfund receivables and payables Activity between funds that are representati ve of lending /borrowing arrangements outstand i ng at the end of the fiscal year are referred to as either "due to /from other funds" (i.e., the current portion of i nterfund 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 bad ances outstandi ng between the governmental activities and busi ness -type acti vi ti es are reported i n the government-wi de f i nanci al statements as "internal balances." -52- CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- CONTINUED Property taxes The Counci I annual I adopts a tax l evy i n December and certifies it to the County for col lection i n the fol lowi ng year. The County is responsi ble for col Iecti ng al I property taxes for the City. These taxes attach an enforceable I ien on taxable property withi n the City on January 1 and are payable by the property owners i n two i nstal l meets. The taxes are col Iected by the County Auditor and tax settlements are made to the City duri ng January, July and December each year. Taxes payable on homestead property, as defi ned by M i nnesota statutes, were partial I reduced by a market val ue credit aid. The credit is paid to the City by the State of M i nnesota (the State) i n I ieu of taxes levied agai nst the homestead property. The State remits this credit i n two equal i nstal I meets i n October and December each year. Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred revenue I i abi I i ty for del i nquent taxes not recei ved withi n 60 days after year end i n the fund f nanci al statements. Special assessments Special assessments represent the fi nanci ng for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All governmental fund special its receivable are offset by a deferred revenue I i abi I ity i n the fund f nanci al statements. I nventories and prepaid items Al I i nventori es are val ued at cost usi ng the f rst -i n/fi rst -out (FI FO) method. I nventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certai n payments to vendors reflect costs appl icable to future accounti ng periods and are recorded as prepaid items i n both government -wide and fund financial statements. -53- CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES— CONTINUED Capital assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are, reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets aredefined by the City asassetswith an initial, individual cost of morethan $5,000 (amount not rounded) and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assetsare recorded at estimated fair market valueat the date of donation. In the case of initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the City chose to include items dating back to June 30, 1980. The City was able to esti mate the historical cost for the initial reporting of these assets through back trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price -level index to deflate the cost to the acquisition year or estimated acquisition year). As the City constructs or acquires capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported val ue excl udes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the origi nal estimate. In the case of donations the City values these capital assets at the esti mated fair value of the item at the date of its donation. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized val ue of the assets constructed. Property, plant and equipment of the City are depreciated using the straight-line method over the fol lowi ng estimated useful I i ves: Compensated absences It is the City's policy to permit employees to accumulate earned but unused paid time off benefits to a maxi mum of 192 hours. All paid timeoff pay isaccrued when incurred in the government -wide and proprietary funds. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignationsand retirements. Union employees are allowed severanceequal totheir unused compensatory time. In governmental fund types the cost of these benefits is recognized when payments are made to the employees. The General fund is typically used to I iquidate governmental compensated absences. No Useful Lives Assets i n Years Land i mprovements 4 to 25 Other i mprovements 10 to 20 Bui Idi ngs and i mprovements 10 to 50 System i mprovements/i nfrastructure 20 to 50 M achi nery and equi pment 3 to 20 Vehicles 3to 10 Other assets 3 to 15 Compensated absences It is the City's policy to permit employees to accumulate earned but unused paid time off benefits to a maxi mum of 192 hours. All paid timeoff pay isaccrued when incurred in the government -wide and proprietary funds. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignationsand retirements. Union employees are allowed severanceequal totheir unused compensatory time. In governmental fund types the cost of these benefits is recognized when payments are made to the employees. The General fund is typically used to I iquidate governmental compensated absences. No CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES— CONTINUED Long -term obligations I n the government -wide financial statements, and proprietary fund types in the fund financial statements, long -term debt and other long-term obl i gati ons are reported as I i abi I i ti es i n the appl i cable governmental acti vi ti es, busi ness -type activities or proprietary fund type statement of net assets. Begi nni ng January 1, 2003, for governmental funds, bond premi ums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds usi ng the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. I n the fund fi nancial statements, governmental fund types recognized bond premi ums and discounts, as wel I as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premi ums recei ved on debt issuances are reported as other fi nanci ng sources whi le 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. Fund equity In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constrai nts i mposed upon the use of resources reported i n the governmental funds. These classifications are defined asfollows: Nonsnendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items. Restricted - Amounts related to externally imposed constraintsestablished by creditors, grantorsor contributors; or constraints imposed by statestatutory provisions. Commtted - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council (the Council), which is the City's highest level of decision - making authority. Committed amounts cannot be used for any other purpose unless the Council modifies or rescinds the commitment by resolution. Assigned - Amounts constrai ned for specific purposes that are i nternal I i mposed. I n governmental funds other than the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable and are neither restricted nor committed. I n the General fund, assigned mounts represent intended uses establ i shed by the Council itself or by an official to which the governi ng body delegates the authority. The Counci I has adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the Finance Director. Unassigned - The residual classification for the General fund and also negative residual amounts in other funds. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City has formally adopted a fund balance policy for the General fund. The City's policy is to maintain a minimum unassigned fund balance of 40 -50 percent of budgeted operating expenditures for cash -flow timing needs. -55- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 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 ". Comparative datalreclassifications Comparative total data for the prior year have been presented only for the 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 have been reclassified in order to be consistent with the current year's presentation. Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General fund. All annual appropriations lapse at fiscal year end. The City does not use encumbrance accounting. In May of each year, all departments of the City submit requests for appropriations to the City Administrator so that a budget may be prepared. Before September 15th, the proposed budget is presented to the Council for review. The Council holds public hearings and a final budget is prepared and adopted in early December. The appropriated budget is prepared by fund, function and department. The City's department heads, with the approval of the City Administrator, may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the Council. The legal level of budgetary control is the department level. There were no budget amendments made during 2011. B. Deficit fund equity The following funds had a deficit fund balance as of December 31, 2011: Fund Major Capital projects Park These deficits will be eliminated with future transfers. Amount $ (1,071,023) -56- CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 3: DETAILED NOTES ON ALL FUNDS A. Depositsand 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 ableto 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 i nsurance or bonds. Authorized col I ateral in l i e u of a corporate surety bond includes: • United States government Treasury bills, Treasury notes, Treasury bonds; • Issuesof United States government agencies and instrumentalities asquoted by a recognized industry quotation service avai I abl e to the government entity; • General obligation securitiesof any stateor local government with taxing powerswhich is rated "A" or better by a national bond rating service, or revenue obligation securitiesof any stateor local government with taxing powerswhich is rated "AA" or better by a national bond rating service; • General obligation securitiesof a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby lettersof credit issued by Federal Home Loan Banksto 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 ful ly 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 City. At year end, the City's carrying amount of deposits was $4,371,761, and the bank bad ance was $4,438,132. Of the bank balance, $250,000 was covered by federal depository insurance and $4,188,132 was covered by collateral held by the City's agent in the City's name. -57- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Investments As of December 31, 2011, the City had the following investments that are insured or registered, or securities held by the City or its agent in the City's name. Investment Type Pooled investments Broker money market Nonpooled investments Brokered CDs U.S. Government Agency Securities Total investments $ 502,724 (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 Indicates not applicable or available. The investments of the City are subject to the following risks: • Credit Risk. The credit risk for investments 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 limit the City's investments to the list on page 52 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. Generally, the City limits its securities purchases to those insured and registered under the City's name. • Concentration of Credit Risk. The concentration of credit risk for investments is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The City has 99 percent of its portfolio invested in brokered CD's at year end. • Interest Rate Risk The interest rate risk for investments is the risk that changes in interest rates will adversely affect the fair value of an investment. The City does not currently have a formal investment policy that addresses the above mentioned risks. A reconciliation of cash and temporary investments as shown on the statement of net assets for the City follows. Tntnl Carrying amount of deposits Investments Petty cash Total $ 4,371,761 502,724 199 $ 4,874,684 -58- Fair Value Credit Segmented Concentration and Quality/ Time of Carrying Ratings (1) Distribution (2) Credit Risk Amount N/A N/A N/A $ 4,724 N/A 1 - 3 years 49% 248,000 AAA more than 3 years N/A 250,000 $ 4,371,761 502,724 199 $ 4,874,684 -58- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED B. Deferred revenue Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the govermnental funds were as follows: General fund Taxes receivable Special assessments receivable Debt Service funds Special assessments receivable Total Unavailable $ 65,048 86,712 1,773,704 $ 1,925,464 -59- CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 3: DETAILED NOTES ON ALL FUNDS- CONTINUED C. Capital assets Capital asset activity for the governmental activities for the year ended December 31, 2011 was as follows: Governmental activities Capital assets not being depreciated Land Construction in progress Total capital assets not being depreciated Capital assets bei ng depreciated Buildings I nfrastructure M achi nery and equi pment Total capital assets bei ng depreci ated Less accumulated depreci ati on for Buildings I nfrastructure M achi nery and equi pment Total accumulated depreciation Total capital assets bei ng depreci ated, net Governmental activities capital assets, net Begi nni ng Endi ng Balance Increases Decreases Balance $ 3,308,023 $ - $ - $ 3,308,023 4,038,169 1,437,891 (4,084,864) 1,391,196 7,346,192 1,437,891 (4,084,864) 4,699,219 1,627,438 - - 1,627,438 10,349,656 4,084,864 - 14,434,520 797,104 - - 797,104 12,774,198 4,084,864 - 16,859,062 (617,876) (37,290) - (655,166) (2,975,216) (448,404) - (3,423,620) (409,028) (57,922) - (466,950) (4,002,120) (543,616) - (4,545,736) 8,772,078 3,541,248 - 12,313,326 $ 16,118,270 $ 4,979,139 $ (4,084,864) $ 17,012,545 .e CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 3: DETAILED NOTES ON ALL FUNDS- CONTINUED Capital asset activity for the business -type activities for the year ended December 31, 2011 was as follows: Begi nni ng Endi ng Balance Increases Decreases Balance Business -type activities Capital assets not being depreciated Land Capital assets bei ng depreciated Buildings I nfrastructure M achi nery and equi pment Total capital assets bei ng depreci ated Less accumulated depreci ati on for Buildings I nfrastructure M achi nery and equi pment Total accumulated depreciation $ 196,255 $ - $ - $ 196,255 414,000 - - 414,000 9,105,729 - - 9,105,729 283,942 56,426 - 340,368 9,803,671 56,426 - 9,860,097 (24,150) (8,280) - (32,430) (2,606,832) (294,714) - (2,901,546) (182,935) (25,695) - (208,630) (2,813,917) (328,689) - (3,142,606) Total capital assets bei ng depreci ated, net 6,989,754 (272,263) - 6,717,491 Busi ness -type activities capital assets, net $ 7,186,009 $ (272,263) $ - $ 6,913,746 Depreciation expense was charged to functions/programsof the City as follows: Governmental activities General government $ 14,754 Publ i c safety 6,887 Public works 459,696 Culture and recreation 62,279 Total depreciation expense- governmental activities $ 543,616 Business -type activities Water $ 181,878 Sewer 118,927 Storm water 27,884 Totaldepreciationexpense - business -type activities $ 328,689 -61- CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 3: DETAILED NOTES ON ALL FUNDS- CONTINUED D. Long -term debt General obligation bonds The City issues general obligation bonds to provide fundsfor the acquisition and construction of major capital facilities. General obligation bonds have been issued for governmental activities. General obligation bonds are direct obl i gati ons and pl edge the f ul I faith and credit of the City. General obligation bonds currently outstanding areas fol lows: General obligation improvement bonds The fol I owi ng bonds were i ssued to fi nance vari ous i mprovements and wi I I be repai d pri mari I y from sped al assessments collections and tax levies. Description G.O. I mprovement Bonds of 2005 G.O. I mprovement Bonds of 2009A G.O. Crossover Bonds of 2009B G.O. I mprovement Bonds of 2011 A Balance Authorized Interest Issue Maturity at and Issued Rate Date Date Year End $ 827,750 4.00-4.30 % 04/27/05 01/01/21 $ 560,585 3,715,000 2.3-5.60 2,430,000 2.00-3.00 2,760,000 .50-2.45 08/19/09 08/01/25 3,715,000 10/29/09 09/01/18 2,290,000 04/14/11 07/01 /19 2,760,000 $ 9,325,585 Total General Obligation Improvement Bonds Annual debt service requirements for general obligation improvement bonds are as fol lows: -62- General Obligation Improvement Bonds Year Ending Governmental Activities December 31, Pri nci pal Interest Total 2012 $ 545,604 $ 303,885 $ 849,489 2013 713,958 283,245 997,203 2014 850,854 269,253 1,120,107 2015 874,208 251,020 1,125,228 2016 881,104 228,838 1,109, 942 2017 -2021 4,239,857 645,450 4,885,307 2022 -2025 1,220,000 134,734 1,354,734 Total $ 9,325,585 $ 2,116,425 $ 11,442,010 -62- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Changes in long -term liabilities During the year ended December 31, 2011, the following changes occurred in noncurrent liabilities: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental activities Bonds payable $ 10,809,439 $ 2,760,000 $ (4,243,854) $ 9,325,585 $ 545,604 Compensated absences payable 43,147 47,833 (52,997) 37,983 33,186 Governmental activities long -term liabilities $ 10,852,586 $ 2,807,833 $ (4,296,851) $ 9,363,568 $ 578,790 Business -type activities Compensated absences payable $ 13,897 $ 13,635 $ (13,264) $ 14,268 $ 11,027 E. Interfund balances and transfers The following is a schedule of interfund transfers as of December 31, 2011: Transfer in General Debt Service Other Fund Fund Funds Governmental Total Transfer out General $ - $ - $ 26,100 $ 26,100 Storm Water - 99,500 - 99,500 Other Governmental 12,480 1,526 - 14,006 Total $ 12,480 $ 101,026 $ 26,100 $ 139,606 • A transfer of $26,100 from the General fund to other governmental funds for the creation and funding of the Revolving Street fund. • A transfer of $99,500 from the Storm Water fund to Debt Service funds for future debt payments. • A transfer of $12,480 from other governmental funds to the General fund for salary reimbursement. • A transfer of $1,526 from other governmental funds to Debt Service funds to close the fund. -63- CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 3: DETAILED NOTES ON ALL FUNDS- CONTINUED F. Advancesfrom/toother funds The fol lowi ng is a schedule of i nterfund advances: Receivable Fund Payable Fund Amount Enterpri se Sewer General $ 455,560 Sewer Park 1,108, 312 Sewer Debt Service 376,904 Saver Storm water 110,000 Total $ 2,050,776 • The Sewer fund advanced the Park fund an additional $283,312 during the year to provide temporary financing to cover the costs of i mprovements to the property unti I funds are avai table from developer fees for parks. I n the event that park fees are i nsuffi ci ent to make payments on the advance, the requi red funds shat I be i ncl uded i n the operati ng I evy. • The Sewer fund advanced the Downtown Storm Water Reclamation fund $110,000 to provide monies for the project funding plan. The advance will be repaid upon the completion of the project. • The Sewer fund advanced the General fund $455,560 for the value of the public works building waiting to be sold. • The Sewer fund advanced Debt Servi ce funds $376,904 to the Backage Road Property Debt Servi ce fund. When the term of the loan expi res, the Sewer fund wi I I purchase the property back. All of the above interfund advances have associated amortization schedules, of which current payments are being made. G. Fund equity At December 31, 2011, portions of the City's fund balance are not available for appropriation due to not being in spendable form (Nonspendable), legal restrictions (Restricted), City Council action (Committed), policy and /or intent (Assigned). The following is a summary of the components of fund balance: Nonspendable Prepaid items Committed for Park and recreation Restricted for Debt service Cable TV Assigned for Street maintenance Irrigation system Unassigned Total Other Debt Governmental General Service Park Funds Total $ 11,826 $ 38,880 $ - $ - $ 50,706 6,837 - - - 1,243,612 - 7,426 14,263 - 1,243,612 25,453 25,453 26,100 26,100 - - - 59,391 59,391 1,123,658 - (1,071,023) - 52,635 $ 1,142,321 $ 1,282,492 $ (1,071,023) $ 118,370 $ 1,472,160 WE CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 4: DEFINED BENEFIT PENSION PLANS- STATEWIDE A. Plan description All full -time and certain part- time employeesof the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administersthe General Employees Retirement Fund (GERF), which is a cost-sharing, multiple - employer retirement plan. The plan isestablished and administered in accordance with Minnesota statutes, chapters 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. PERA provides retirement benefitsaswell asdisability benefitsto members, and benefitsto survivors upon death of eligible members. Benefits are established by Minnesota 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 yearsof allowable service, age and yearsof credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Ran members. The retiring member receivesthe higher of astep -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 is2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For all GERF members hired prior to July 1, 1989 whose annuity iscalculated using Method 1, afull annuity is available when age plus years of service equal 90. Normal retirement age is 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age isthe agefor unreduced Social Security benefitscapped at 66 for coordinated members hired after July 1, 1989. A reduced retirement annuity is also availableto eligible members seeking early retirement. There are different types of annuities avai I abl a to members upon retirement. A normal 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 avai I abl e whi ch w i l l reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leavetheir contributions in thefund upon termination of public service in order to qualify for adeferred annuity at retirement age. Refundsof contributions are available at any time to memberswho 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 employeeswho are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the ti me they last terminated their public service. PERA issuesa publicly avai lable financial report that includes financial statements and required supplementary information for GERF. That report may be obtai ned on the Internet at www.mnpera.org, by writing to PERA at 60 Empire Drive, Suite 200, St. Paul, Minnesota 55103 -2088 or by calling 651- 296 -7460 or 1 -800- 652 -9026. -65- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED B. 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. GERF Basis Plan members and Coordinated Plan members were required to contribute 9.10 percent and 6.25 percent, respectively, of their annual covered salary in 2011. In 2011, the City was required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan GERF members and 7.25 percent for Coordinated Plan GERF members. Employer contribution rates for the Coordinated Plan will increase to 7.25 percent, effective January 1, 2011. The City's contributions to the GERF for the year ended December 31, 2011, 2010 and 2009 were $45,034, $44,431, and $40,832, respectively. The City's contributions were equal to the contractually required contributions for each year as set by Minnesota statute. Note 5: JOINT POWERS AGREEMENTS A. Centennial Fire District The Centennial Fire District (the District) was formed under the authority of Minnesota statutes 471.59 in 1985 by agreement of the member cities of Centerville, Lino Lakes and Circle Pines. The district was created to provide fire protection services to the residents of the member cities. The District is managed through a three tier system consisting of a Fire Chief, a Steering Committee, and the Councils of the member cities. The Fire Chief is an appointed position. Each member city appoints two commissioners. One of these commissioners must be an elected official of the city. Each member city contributes funds to cover the budgeted costs of operations as determined by the commissioners. The amount of contributions required by each member is based on each city's population, number of fire calls, and assessed valuations. Contributions made by member cities for 2011, the most recent data available, were as follows: City of Centerville City of Circle Pines City of Lino Lakes Total $ 97,290 13.40 % 123,427 17.00 505,324 69.60 $ 726,041 100.00 Volunteer firefighters of the District are members of the Centennial Firefighter's Relief Association (the Association). The Association is a single - employer pension plan (the Plan) that operates under the provisions of Minnesota statutes 69 and 424, as amended. It is governed by a board of six officers and trustees elected by the members of the Association for three -year terms. The ex- officio, non - voting members of the Board of trustees are two representatives from the Centennial Fire Steering Committee and the Fire Chief of the District. The Association issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Centennial Fire District 7741 Lake Drive, Lino Lakes, MN 55014. no CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 5: JOINT POWERS AGREEMENTS - CONTINUED B. Centennial Lakes Police Department The Centennial Lakes Police Department (the Department) was formed under the authority if Minnesota statutes 436.06 in 2005 by agreement of the member cities of Centerville, Circle Pines and Lexington. The Department was created to provide police protection services to its member cities. The Department is managed through a three tier system consisting of a Governing Board, an Operations committee, and a Chief of Police. The Governing Board consists of six members, two elected officials appointed by each member city. The Operations Committee is made up of the City administrators from each member city and the Chief of Police. The Chief of Police is appointed by mutual agreement of the City councils of all member cities. Annual contributions required by each member city are calculated based on complaint history, population, and staffing formulas. Contributions made by member cities for 2010, the most recent data available, were as follows: City of Centerville S 689,477 32.70 % City of Circle Pines 846,122 40.13 City of Lexington 572,653 27.16 Total S 2,108,252 100.00 % C. Summary financial information of the joint powers agreements entities The contribution to the joint fire district and the joint police commission are reflected as expenditures in the City's General fund. The fire district and police commission's assets, liabilities, equity and operations are excluded from the City's financial statements as further explained in note IA. The following information is from the financial statements of the District and the Department as of December 31, 2010, the most recent audited information available at the time of this report. The amounts reported for the District are those presented in its government -wide financial statements. These financial statements are available for viewing at the Centerville City hall. Volunteer firefighters of the District are members of the Centennial Firefighter's Relief Association (the Association). The Association is a single - employer pension plan (the Plan) that operates under the provisions of Minnesota statutes 69 and 424, as amended. It is governed by a board of six officers and trustees elected by the members of the Association for three -year terms. The ex- officio, non - voting members of the Board of trustees are two representatives from the Centennial Fire Steering Committee and the Fire Chief of the District. The Association issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Centennial Fire District 7741 Lake Drive, Lino Lakes, MN 55014. -67- Centennial Centennial Lakes Police Fire District Department Total assets S 1,397,901 S 774,459 Total liabilities 110,738 341,035 Total net assets 1,287,163 443,424 Total revenue 913,492 2,257,515 Total expenses 804,603 2,476,196 Volunteer firefighters of the District are members of the Centennial Firefighter's Relief Association (the Association). The Association is a single - employer pension plan (the Plan) that operates under the provisions of Minnesota statutes 69 and 424, as amended. It is governed by a board of six officers and trustees elected by the members of the Association for three -year terms. The ex- officio, non - voting members of the Board of trustees are two representatives from the Centennial Fire Steering Committee and the Fire Chief of the District. The Association issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Centennial Fire District 7741 Lake Drive, Lino Lakes, MN 55014. -67- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 6: OTHER INFORMATION A. Risk management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the City carries insurance. The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust ( LMCIT), which is a risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of any incurred but not reported claims. B. Legal debt margin In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of 3 percent of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and, therefore, excludes debt financed partially or entirely by special assessments, Enterprise fund revenues or tax increments. The market value of taxable property is $356,139,100, which leaves a debt margin of $10,684,173. The City has no outstanding debt against this limit. C. Tax increment districts The City is the administering authority for tax increment financing district No. 1-6. The district is a redevelopment district established in 2005. The property in the district is tax exempt; therefore there is no tax capacity. The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. Note 7: ACCOUNTING CHANGE GASB Statement 54 "Fund Balance Reporting and Governmental Fund Type Definitions" enhances the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. The City implemented this standard for fiscal year end December 31, 2011. Changes to governmental fund type fund balance reporting is reflected in the financial statements and schedules and related disclosures are included in Note 1 and Note 3. .: COM BI NI NG AND I NDIVI DUAL FUND Fl NANCIAL STATEM ENTSAND SCHEDULES CITY OF CENTERV I LLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2011 .• CITY OFCENTERVILLE, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2011 ASSETS Cash and temporary investments Receivables Accounts Due from other governments TOTAL ASSETS LIABILITIESAND FUND BALANCES LIABILITIES Accounts payable Contracts payable TOTAL LIABILITIES FUND BALANCES Restricted for Cabl e TV Committed for Trail projects Assigned for Revol vi ng street project 2010 Downtown irrigation TOTAL FUND BALANCES TOTAL LIABILITIESAND FUND BALANCES 614 Cabl e T.V . Special Revenue Funds 215 Northern Forest Products Total $ 15,858 $ - $ 15,858 9,595 - 9,595 $ 25,453 $ - $ 25,453 25,453 - 25,453 25,453 - 25,453 $ 25,453 $ - $ 25,453 -70- $ - $ 6,545 $ 76,945 $ 6,545 $ 6,545 9,423 - 79,823 79,823 9,423 - 86,368 86,368 - - - - - 25,453 - 7,426 - - - 7,426 7,426 26,100 - - - - 26,100 26,100 - - - 59,391 - 59,391 59,391 26,100 7,426 - 59,391 - 92,917 118,370 $ 26,100 $ 84,371 $ - $ 68,814 $ - $ 179,285 $ 204,738 -71- Capital Projects 401 414 451 453 470 Total Revolving 2009 2007 CDBG Nonmajor Street Pedestrian Street & Utility Downtown Water Governmental Fund Trail Ways Improvements Redevelopment Services Total Funds $ 26,100 $ 84,371 $ - $ 27,122 $ - $ 137,593 $ 153,451 - - - 41,692 - 41,692 41,692 - - - - - - 9,595 $ 26,100 $ 84,371 $ - $ 68,814 $ - $ 179,285 $ 204,738 $ - $ 6,545 $ 76,945 $ 6,545 $ 6,545 9,423 - 79,823 79,823 9,423 - 86,368 86,368 - - - - - 25,453 - 7,426 - - - 7,426 7,426 26,100 - - - - 26,100 26,100 - - - 59,391 - 59,391 59,391 26,100 7,426 - 59,391 - 92,917 118,370 $ 26,100 $ 84,371 $ - $ 68,814 $ - $ 179,285 $ 204,738 -71- CITY OFCENTERVILLE, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) FOR THE YEAR ENDED DECEMBER 31, 2011 REVENUES Property taxes I ntergovernmental Interest on i nvestments M i scel I aneous Refunds and reimbursements TOTAL REVENUES EXPENDITURES Current Public works Supplies Culture and recreation Personal services Other services and charges Economic development Other services and charges Capital outlay Public works Culture and recreation TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES (DEFICITS), JANUARY 1 FUND BALANCES, DECEMBER 31 Special Revenue Funds 614 215 Northern Forest $ - $ 7,446 $ 7,446 254 - 254 9,595 - 9,595 9,849 7,446 17,295 8,985 - 8,985 73 - 73 - 7,446 7,446 9,058 7,446 16,504 791 - 791 791 - 791 $ 25,453 $ - $ 25,453 -72- Capital Projects 401 414 451 453 470 Total Revolving - 2009 2007 CDBG Nonmajor Street Pedestrian Street & Utility Downtown Water Governmental Fund Trail Ways Improvements Redevelopment Services Total Funds $ - $ - $ - $ - $ - $ - $ 7,446 - 963 - 238,500 49,452 288,915 288,915 - 2,334 304 1,768 - 4,406 4,660 3,297 - - - - 9,595 304 240,268 49,452 293,321 310,616 - - - 10,041 - 10,041 10,041 - 1,208 - - - 1,208 10,193 - 1,982 - - - 1,982 2,055 - - - - - - 7,446 - - 46,696 284,072 44,052 374,820 374,820 - 537,767 - - - 537,767 537,767 - 540,957 46,696 294,113 44,052 925,818 942,322 - (537,660) (46,392) (53,845) 5,400 (632,497) (631,706) 26,100 - - - - 26,100 26,100 - - (1,526) (12,480) - (14,006) (14,006) 26,100 - (1,526) (12,480) - 12,094 12,094 26,100 (537,660) (47,918) (66,325) 5,400 (620,403) (619,612) - 545,086 47,918 125,716 (5,400) 713,320 737,982 $ 26,100 $ 7,426 $ - $ 59,391 $ - $ 92,917 $ 118,370 -73- CITY OFCENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTI NUTED ON THE FOLLOWING PAGES FOR THE YEAR ENDED DECEMBER 31, 2011 (With Comparative Actual Amounts for the Year Ended December 31, 2010) 2011 2010 L i censes and permits Budgeted Amounts Actual Variancewith Actual 1,400 Original Final Amounts Final Budget Amounts REVENUES 21,774 Nonbusiness 77,000 77,000 Takes 1,277 75,433 Total 104,800 General property $ 1,670,600 $ 1,670,600 $ 1,695,804 $ 25,204 $ 1,651,153 Gambling - - 2,708 2,708 753 Total 1,670,600 1,670,600 1,698,512 27,912 1,651,906 L i censes and permits 1,000 1,000 990 (10) 1,400 Busi ness 27,800 27,800 33,565 5,765 21,774 Nonbusiness 77,000 77,000 78,277 1,277 75,433 Total 104,800 104,800 111,842 7,042 97,207 1 ntergovernmental 33,500 33,500 26,990 (6,510) 36,028 State 12,000 12,000 20,350 8,350 28,090 Property tax credits - - 616 616 692 State grants aid 1,300 1,300 8,286 6,986 1,333 Pot ice aid 35,000 35,000 32,919 (2,081) 34,627 2% Fire relief aid 102,000 102,000 104,828 2,828 101,711 County - other 16,500 16,500 16,595 95 16,640 Total 154,800 154,800 163,244 8,444 155,003 Charges for services General government 1,000 1,000 990 (10) 1,400 Culture and recreation 2,400 2,400 7,789 5,389 2,930 Other 100 100 31 (69) 78 Total 3,500 3,500 8,810 5,310 4,408 Fines and forfeitures 33,500 33,500 26,990 (6,510) 36,028 Special assessments 12,000 12,000 20,350 8,350 28,090 Interest on investments 20,000 20,000 17,483 (2,517) 13,677 Miscel laneous Refunds and reimbursements 53,000 53,000 18,497 (34,503) 7,539 Other 2,500 2,500 15,815 13,315 13,786 Total 55,500 55,500 34,312 (21,188) 21,325 TOTAL REVENUES 2,054,700 2,054,700 2,081,543 26,843 2,007,644 -74- CITY OFCENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2011 (With Comparative Actual Amounts for the Year Ended December 31, 2010) 2011 2010 -75- Budgeted Amounts Actual Variancewith Actual Original Final Amounts Final Budget Amounts EXPENDITURES Current General government Mayor and Counci I Personal services $ 29,700 $ 29,700 $ 30,035 $ (335) $ 29,927 Other services and charges 2,100 2,100 437 1,663 199 Total 31,800 31,800 30,472 1,328 30,126 Elections Personal services - - - - 5,784 Supplies - - - - 85 Other services and charges - - - - 847 Total - - - - 6,716 Planning and zoning Other services and charges 2,600 2,600 1,647 953 1,397 Administration Personal services 295,500 295,500 293,781 1,719 286,793 Supplies 4,500 4,500 1,072 3,428 2,615 Other services and charges 59,900 59,900 54,822 5,078 55,314 Total 359,900 359,900 349,675 10,225 344,722 Assessi ng Other services and charges 16,000 16,000 15,453 547 15,429 Legal and auditing Other services and charges 90,000 90,000 108,453 (18,453) 103,958 General government building Personal services 4,400 4,400 1,699 2,701 1,859 Supplies 300 300 216 84 186 Other services and charges 16,500 16,500 14,181 2,319 14,239 Total 21,200 21,200 16,096 5,104 16,284 Total general government 521,500 521,500 521,796 (296) 518,632 -75- CITY OFCENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2011 (With Comparative Actual Amounts for the Year Ended December 31, 2010) 2011 2010 Budgeted Amounts Actual Variancewith Actual Original Final Amounts Final Budget Amounts EXPENDITURES- CONTINUED Current - Continued Publ i c safety Pol ice protection Other services and charges $ 658,900 $ 658,900 $ 659,168 $ (268) $ 690,941 Fire protection Remittance to relief association 102,000 102,000 104,828 (2,828) 101,711 Other services and charges 120,200 120,200 119,027 1,173 112,947 Total 222,200 222,200 223,855 (1,655) 214,658 Building inspection Personal services 128,800 128,800 122,669 6,131 135,387 Supplies 2,000 2,000 1,577 423 1,653 Other services and charges 12,500 12,500 7,458 5,042 9,364 Total 143,300 143,300 131,704 11,596 146,404 Civil defense Other services and charges 1,500 1,500 1,843 (343) 1,506 Animal control Other services and charges 1,100 1,100 1,502 (402) 536 Total publ is safety 1,027,000 1,027,000 1,018,072 8,928 1,054,045 Public works Streets Personal services 173,300 173,300 169,248 4,052 210,146 Supplies 26,500 26,500 32,393 (5,893) 33,748 Other services and charges 80,100 80,100 94,630 (14,530) 85,407 Total 279,900 279,900 296,271 (16,371) 329,301 Recycl i ng Personal services 4,200 4,200 4,190 10 4,129 Supplies 100 100 1,212 (1,112) 921 Other services and charges 12,200 12,200 11,193 1,007 11,589 Total 16,500 16,500 16,595 (95) 16,639 -76- CITY OFCENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2011 (With Comparative Actual Amounts for the Year Ended December 31, 2010) Economic development Supplies 100 2011 10 90 99 2010 2,000 Budgeted Amounts Actual Variancewith Actual 2,100 Original Final Amounts Final Budget Amounts EXPENDITURES- CONTINUED 1,965,181 (22,781) 2,012,231 98,300 22,100 76,200 Current - Continued Debt service Publ i c works - conti nued Principal 14,000 14,000 6,732 7,268 Engi neeri ng services TOTAL EXPENDITURES 2,054,700 2,054,700 1,994,013 60,687 Other services and charges $ 2,000 $ 2,000 $ 9,176 $ (7,176) $ 8,254 Total public works 298,400 298,400 322,042 (23,642) 354,194 Culture and recreation Parks and recreation Personal services 39,600 39,600 39,076 524 33,361 Supplies 5,500 5,500 11,449 (5,949) 6,985 Other services and charges 42,800 42,800 39,409 3,391 38,785 Total 87,900 87,900 89,934 (2,034) 79,131 City Festival Other services and charges 5,500 5,500 5,709 (209) 5,830 Total culture and recreation 93,400 93,400 95,643 (2,243) 84,961 Economic development Supplies 100 100 10 90 99 Other services and charges 2,000 2,000 7,618 (5,618) 300 Total economic devel opment 2,100 2,100 7,628 (5,528) 399 Total current expenditures 1,942,400 1,942,400 1,965,181 (22,781) 2,012,231 Capital outlay General government 2,200 2,200 1,243 957 3,601 Public works 91,100 91,100 15,473 75,627 174,584 Culture and recreation 5,000 5,000 5,384 (384) - Total capital outlay 98,300 98,300 22,100 76,200 178,185 Debt service Principal 14,000 14,000 6,732 7,268 6,633 TOTAL EXPENDITURES 2,054,700 2,054,700 1,994,013 60,687 2,197,049 -77- THIS PAGE IS LEFT BLANK INTENTIONALLY -78- CITY OFCENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2011 (With Comparative Actual Amounts for the Year Ended December 31, 2010) 2011 2010 Budgeted Amounts Original Final EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES $ - $ OTHER FINANCING SOURCES (USES) Transfers in - Transfers out - _ Actual Variancewith Actual Amounts Final Budget Amounts $ 87,530 $ 87,530 $ (189,405) 12,480 12,480 26,490 (26,100) (26,100) - TOTAL OTHER Fl NANCI NG SOURCES (USES) - - (13,620) (13,620) 26,490 NET CHANGE IN FUND BALANCES - - 73,910 73,910 (162,915) FUND BALANCES, JANUARY 1 1,068,411 1,068,411 1,068,411 - 1,231,326 FUND BALANCES, DECEMBER 31 $ 1,068,411 $ 1,068,411 $ 1,142,321 $ 73,910 $ 1,068,411 -79- CITY OFCENTERVILLE, MINNESOTA ASSETS Cash and temporary investments Receivables Delinquent takes Special assessments Del i nquent Deferred Prepaid items TOTAL ASSETS LIABILITIESAND FUND BALANCES LIABILITIES Advances to other funds Deferred revenue TOTAL LIABILITIES FUND BALANCES Restricted for debt service TOTAL LIABILITIESAND FUND BALANCES DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2011 309 312 348 349 Joint G.O. G.O. G.O. Police I mprovement I mprovement I mprovement Station Bonds of Bonds of Bonds of 2005A 2004B 2006A 2007A $ 54,155 $ - $ 521,385 $ 365,181 1,610 - - 6,247 - - - 7,902 - - 322,234 571,689 6,159 - - 32,721 $ 61,924 $ - $ 843,619 $ 983,740 $ 376,904 $ - 322,234 574,893 699,138 574,893 61,924 - 144,481 408,847 $ 61,924 $ - $ 843,619 $ 983,740 :e 351 G.O. I rrprovement Bonds of , ?nnoA Tntal $ 663,968 $ 1,604,689 3,108 10,965 4,141 12,043 872,600 1,766,523 - 38,880 $ 1,543,817 $ 3,433,100 $ - $ 376,904 876,577 1,773,704 876,577 2,150,608 rT:VAf►zri�fIw wk MA $ 1,543,817 $ 3,433,100 -81- CITY OFCENTERVILLE, MINNESOTA DEBT SERVICE FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2011 REVENUES Property taxes Special assessrnents I ntergovernmental Interest on i nvestments TOTAL REVENUES EXPENDITURES Current Public works Debt service Pri nci pal I nterest and other TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Bonds issued TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 309 312 348 349 Joi nt G.O. G.O. G.O. Police I mprovement I mproverrent I mproverrent Station Bonds of Bonds of Bonds of 2005A 2004B 2006A 2007A $ 76,390 $ - $ - $ 296,417 - 4,850 107,304 147,668 442 185 4,996 6,529 76,832 5,035 112,300 450,614 - - 6,445 - 48,854 510,000 140,000 3,545,000 25,045 33,659 69,045 105,871 73,899 543,659 215,490 3,650,871 2,933 (538,624) (103,190) (3,200,257) - - 99,500 8,048 - (8,048) - - - - - 2,760,000 - (8,048) 99,500 2,768,048 2,933 (546,672) (3,690) (432,209) 58,991 546,672 148,171 841,056 $ 61,924 $ - $ 144,481 $ 408,847 -82- 351 G.O. I rrprovement Bonds of 2009A Total $ 147,471 $ 520,278 113,392 373,214 58,725 58,725 6,545 18,697 326,133 970,914 6,445 - 4,243,854 168,210 401,830 168,210 4,652,129 157,923 (3,681,215) 1,526 109,074 - (8,048) 2,760,000 1,526 2,861,026 159,449 (820,189) 507,791 2,102,681 $ 667,240 $ 1,282,492 -83- CITY OFCENTERVILLE, MINNESOTA SUMMARY FINANCIAL REPORT REVENUESAND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTAL FUNDS FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010 REVENUES Takes L i censes and permits I ntergovernmental Charges for services Fines and forfeitures Special assessments Interest on i nvestments M i scel I aneous TOTAL REVENUES Per Capita EXPENDITURES Current General government Publ i c safety Public works Culture and recreation Economic development Capital outlay General government Public works Culture and recreation Debt service Pri nci pal I nterest and other TOTAL EXPENDITURES Per Capita Total Long -term Indebtedness Per Capita $ 521,796 Percent Total Increase 2011 2010 (Decrease) $ 2,226,236 $ 2,148,804 3.60 % 111,842 97,207 15.06 510,884 537,805 (5.01) 8,810 4,408 99.86 26,990 36,028 (25.09) 393,564 659,531 (40.33) 41,327 48,262 (14.37) 43,907 38,082 15.30 $ 3,363,560 $ 3,570,127 (5.79) % $ 887 $ 920 (3.58) % $ 521,796 $ 518,932 0.55 % 1,018,072 1,054,045 (3.41) 338,528 354,644 (4.54) 107,891 93,539 15.34 15,074 15,078 (0.03) 1,243 3,601 (65.48) 390,293 1,302,202 (70.03) 543,151 128,358 323.15 4,250,586 2,882,104 47.48 401,830 486,335 (17.38) $ 7,588,464 $ 6,838,838 10.96 % $ 2,001 $ 1,762 13.57 % $ 9,325,585 $ 10,809,439 (13.73) % 2,459 2,785 (11.70) General Fund Balance- December 31 $ 1,142,321 $ 1,068,411 6.92 % Per Capita 301 275 9.43 The purpose of this report is to provide a summary of financial information concerning the City of Centerville to interested citizens. The complete financial statements maybe examined a t City H a l l , 1880 M ai n St, Centerville, MN 55038. Questions about this report should be directed to City Hall at(651)429-3232. :• OTHER REQUIRED REPORTS CITY OF CENTERV I LLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2011 -85- THIS PAGE IS LEFT BLANK INTENTIONALLY :. .r,& - - 1 E 1 ERS GcrCfficdl PiAlu Accottntants & 6o sultdnnts 5201 Lden Avenue Suite 250 Edina, MN 55436 REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and Council City of Centervi I le, M i nnesota We have audited the financial statementsof the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City of Centerville, Minnesota (the City), asof and for theyear ended December 31, 2011, which collectively comprise the City's basic financial statements and have issued our report thereon, dated March 28, 2012. We conducted our audit in accordancewith auditing standards generally accepted in the United Statesof 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, section 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 compl i ance to be tested: contracting and bidding, deposits and investments, confl i cts of interest, public indebtedness, claims and disbursements, tax increment financing, and miscellaneous city provisions. Our study included all of the listed categories. The results of our tests indicate that for the itemstested, the City complied with the material terms and conditionsof appl icable legal provisions. This report is intended solely for the information and use of the Council, management, otherswithin the City 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. March 28, 2012 Minneapolis, Minnesota 952.8359090 • Fax 952.835.3261 ww w. aemcpas. eom -87- Clcy. LLP ABDO, EICK & MEYERS, LLP Certified Public Accountants SUMMARY APPRAISAL REPORT FOR PROJECT NO. SP 02- 614 -24 PARCEL 33 FORMER OLSON RESIDENCE 7261 MAIN STREET CENTERVILLE, MN 55038 PREPARED FOR ANOKA COUNTY HIGHWAY DEPARTMENT EFFECTIVE DATE OF THE APPRAISAL January 18, 2012 PREPARED BY ANOKA COUNTYHIGHWAYDEPARTMENT OFFICE OF RIGHT OF WAY RICHARD C. ERICKSON RIGHT OF WAY SPECALIST 2100 3rd Avenue, Room 224 a) Anoka, Minnesota 55303 to Ph- 612 - 323 -5520 -Fax- 612 - 323 -5418 p� COUNTY OF ANOKA Department of Highways/Right -of -Way Government Center • 2100 — 3 rd Avenue, Suite 224 Anoka, MN 55303 -5033 (763) 323 -5520 FAX (763) 323 -5418 Richard C. Erickson Right -of -Way Specialist Direct Dial Number (763) 323 -5522 January 18, 2012 Mr. Andrew Witter Assistant Anoka County Highway Engineer Anoka County Highway Department 1440 Bunker Lake Boulevard Andover, MN 55304 Dear Mr. Witter: At your request, I have preformed a complete appraisal and prepared this summary report of the fonner Olson residence, at 7261 Main Street, Centerville, MN 55038. The appraisal assignment was to estimate the market value of the aforementioned property in fee simple interest after a total taking made by the Anoka County Highway Department for its Highway Project SP 02- 614-24, Main Street, as of January 18 2012. The purpose of the appraisal is to estimate the current fair market value of the remaining parcel. Market Value has been defined as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. We have not considered any liens, title defects, outside financial interest or encumbrances that may affect the Market Value of the property. Our survey concerns only with the physical value of the property as revealed to us, and does not include personal property, assets, or equipment. Based upon inspection of the subject property and in consideration of the various physical, legal, social, and economic factors that influence real estate, the following conclusions of value as of January 18 2012 is as follows: The Estimated Market Valuation of the above mentioned property is -- - - - - - - - - $29,350.00 Respectfully submitted, Richard C. Erickson Anoka County Highway Department Right of Way Specialist Minnesota License No. 4001311 N ANOKA COUNTYHIGHWAYDEPARTMENT OFFICE OF RIGHT OF WAY a SUMMARY APPRAISAL REPORT FOR PROJECT NO. SP 02- 614 -24 PARCEL 75 FORMER PERRON RESIDENCE 1798 MAIN STREET CENTERVILLE, MN 55038 PREPARED FOR ANOKA COUNTY HIGHWAY DEPARTMENT EFFECTIVE DATE OF THE APPRAISAL JANUARY 18, 2012 PREPARED BY ANOKA COUNTYHIGHWAYDEPARTMENT OFFICE OF RIGHT OF WAY RICHARD C. ERICKSON RIGHT OF WAY SPECALIST 2100 3rd Avenue, Room 224 Anoka, Minnesota 55303 Ph- 612 - 323 -5520- Fax - 612 - 323 -5418 c� a COUNTY OF ANOKA Department of Highways/Right -of -Way Government Center • 2100 — 3 rd Avenue, Suite 224 Anoka, MN 55303 -5033 (763) 323 -5520 FAX (763) 323 -5418 Richard C. Erickson Right -of -Way Specialist Direct Dial Number (763) 323 -5522 Mr. Andrew Witter Assistant Anoka County Highway Engineer Anoka County Highway Department 1440 Bunker Lake Boulevard Andover, MN 55304 Dear Mr. Witter: At your request, I have preformed a complete appraisal and prepared this suini report of the former Perron residence, at 1798 Main Street, Centerville, MN 55038. The appraisal assignment was to estimate the market value of the aforementioned property in fee simple interest after a total taking made by the Anoka County Highway Department for its Highway Project SP 02- 614-24, Main Street, as of January 18` 2012. The purpose of the appraisal is to estimate the current fair market value of the remaining parcel. Market Value has been defined as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consuini of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. We have not considered any liens, title defects, outside financial interest or encumbrances that may affect the Market Value of the property. Our survey concerns only with the physical value of the property as revealed to us, and does not include personal property, assets, or equipment. Based upon inspection of the subject property and in consideration of the various physical, legal, social, and economic factors that influence real estate, the following conclusions of value as of January 18` 2012 is as follows: The Estimated Market Valuation of the above mentioned property is -- - - - - - - - - $42,500.00 Respectfully submitted, Richard C. Erickson Anoka County Highway Department Right of Way Specialist Minnesota License No. 4001311 W ANOKA COUNTYHIGHWAYDEPARTMENT a OFFICE OF RIGHT OF WAY a January 18, 2012 § 156.030 COMMERCIAL DISTRICT (B -1). (A) Purpose. It is intended that the 13-1 District provide opportunities for retail and service business uses which require larger development sites, highway visibility or highway access. (B) General minimum requirements, The following minimum requirements, as set forth, shall apply to all buildings that may be erected, converted or structurally altered in commercial districts. (C) Off-street parking, Off -street parking shall be provided as required in this chapter. (D) Buffer zone between commercial and residential districts. Where a commercial district abuts a residential district, any new development shall include a buffer zone. There shall be a protective strip of not less than ten feet in width. This protective strip shall contain no structures, shall not be used for parking, off- street loading or storage, and shall be landscaped. The landscape treatment shall include a compact screen wall or fence, but shall not extend within 15 feet of the street right -of -way. The planting or fence design must be approved by the site plan review process. The site plan review process requires review by the Planning and Zoning Committee and the City Council, as set forth in this chapter. (E) Screening requirements. If the City Council requires any type of screening as a condition for a variance, conditional use, or interim use permit, the applicant shall comply with the following conditions: (1) File a copy of the screening plans with the Zoning Administrator; (2) The screening, planting or construction, or both shall be complete within one year from the date of the building permit, subject to extension by the City Council; and (3) The screening shall be maintained after completion. (F) Landscaping. A minimum of ten percent of any lot shall be green space. Three percent of the surface area of the land within a parking area shall be landscaped with grass and shrubbery or other approved ground cover. Landscaped areas will continue to be maintained by the property owner on a continuous basis. Green areas within abutting street rights -of -way will also be maintained by the property owner. Other requirements are set forth in this chapter. (G) Accessary Structures. Garages, accessory structures, screen walls, buildings and exposed areas of retaining walls shall be of similar type, quality and appearance as the principal structure. The height of an accessory structure shall not exceed the height of the principal structure. 5 (H) Permitted encroachments, The following shall not be considered as encroachments on setbacks subject to other conditions within this chapter. off - street parking spaces, flues, belt coarse, leaders, sills, pilaster, lintels, cornices, eaves, gutters, awnings, open terraces, service station pump islands, open canopies, steps, chimneys, flagpoles, ornamental features, open fire escapes, sidewalks and fences, except as hereinafter amended. (I) Driveways, (1) No driveway shall be located within I00 feet of any right -of -way line of a street intersection. The distances shall be measured along the property line from the corner right -of -way and county line. (2) Access drive onto county roads sliall require a review by the City Engineer. This review shall be measured along the property line from the corner right -of -way and county line. (J) Refuse_ (1) Garbage and rubbish containers shall be placed at the rear of the premises or in a manner as to be out of view from the street. In no event shall containers or their enclosures be placed or maintained in a way to unreasonably interfere with the use or enjoyment of adjoining property. (2) All garbage containers shall be screened with a suitable enclosure. (K) Permitted uses. (1) Retail sales and service, but excluding adult - oriented businesses; (2) Daycare centers; (3) Hotels and motels; (4) Full service gasoline sales and service; (5) Eating and drinking establishments; (6) Financial institutions; (7) Personal and professional business offices; (8) Public buildings; (9) Barber/beauty salons; (10) Commercial schools; A (11) Hospitals and clinics; (12) Nursing homes; (J 3) Commercial recreation; (14) Car washes; and (15) Liquor stores. (L) Conditional uses. (1) Automo vehicle and motorized equipment sales and service, excluding salvage operations provided a the outside sales lot shall not be larger insquare foota e than the one and one -half times the s uare foata e of tl�e buildin deva #ed to the related business. h the sales lot used to park vehicles to be sold or serviced shall be a s crate and distinct from the area of the remises used to ark vehicles necessa to satisfy the minimum parking required b Code, c all repair assembly disassembly or maintenance of vehicles shall occur within a closed buildin exce t minor maintenance includin2 tire inflation addin oil and wiper replacement. Vehicles that are inoperable or are missing bodyDarts shall be stored inside a building for in a property screened area, provided however that vehicles which are inoperable, missing body parts, or are unlicensed may not be stored outside a building longer than 90 days), (2) Farm implements sales and service; "e o utside equOment storage lot shall not be larger in square footaize than one and one -half times the square footage of the building devoted to the related business (b) all repair assembly disassembly or maintenance of vehicles and implements shall occur within a closed building except minor maintenance including tire inflation adding oil and wiper replacement. Vehicles that are inoperable or are missing body parts shall be stored inside a building. (3) Building supply sales and storage yards; a the outside eq and inventory storage lot shall not be Larger in square footage titan one and one_ half times th_c_sauarG footage of the building devoted to the related business. M eted: bile De4eted: y (4) Funeral homes and mortuaries; DRAFT DRAFT DRAFT 4/6/2012 CITY OF CENTERVILLE ANOKA COUNTY, MINNESOTA ORDINANCE # SECOND SERIES AN ORDINANCE AMENDING CITY CODE, CHAPTER 256, REGARDING B -1 CONDITIONAL USES. THE CITY COUNCIL OF THE CITY OF CENTERVILLE ORDAINS: Section 1 . City Code, Chapter 156, Section 156.030 COMMERCIAL DISTRICT (13-1), (L) is hereby amended to read as follows: (L) Conditional uses. (1) Automotive vehicle and motorized equipment sales and service, excluding salvage operations, provided; (a) the outside sales lot shall not be larger in square footage than the one and one -half times the square footage of the building devoted to the related business. (b) the sales lot used to park vehicles to be sold or serviced shall be a separate and distinct from the area of the premises used to park vehicles necessary to satisfy the minimum parking required by this Code. (c) all repair assembly disassembly or maintenance of vehicles shall occur within a closed building except minor maintenance including tire inflation, adding oil and wiper replacement. Vehicles that are inoperable or are missing body parts shall be stored inside a building [or in a properly screened area, provided however that vehicles which are inoperable, missing body parts, or are unlicensed may not be stored outside a building longer than 90 days. (2) Farm implements sales and service; (a) the outside equipment storage lot shall not be larger in square footage than one and one -half times the square footage of the building devoted to the related business (b) all repair assembly disassembly or maintenance of vehicles and implements shall occur within a closed building except minor maintenance including tire inflation, adding oil and wiper replacement. Vehicles that are inoperable or are missing body parts shall be stored inside a building. (3) Building supply sales and storage yards; (a) the outside equipment and inventory storage lot shall not be larger in square footage than one and one -half times the square footage of the building devoted to the related business. comment: P&2 recommended adding this text. Legal Cotmsel has concerns of possible coaftict with other Code sections Wil review with Counc DL �7 DRAFT DRAFT DRAFT 4/6/2012 (4) Funeral Domes and mortuaries; (5) Animal clinics. Section 2 . Effective Date. This ordinance shall be effective immediately upon its passage and publication of the summary attached as Exhibit A, according to lave. PASSED AND DULY ADOPTED this day of , 2412 by the City Council of the City of Centerville. Tom Wiiharber, Mayor ATTEST: Teresa Bender, City Clerk 10 DRAFT DRAFT DRAFT 4(6!2012 Exhibit A Summary of Ordinance _, Second Series Notice is hereby given, that on _ , 2012, Ordinance Number _, Second Series, entitled "AN ORDINANCE AMENDING CITY CODE, CHAPTER 156 REGARDING B -1 CONDITIONAL USES," was adopted by the City Council of Centerville, Minnesota. Notice is further given that due to the lengthy nature of the ordinance, the City Council has directed that this title and summary be prepared for publication pursuant to Minn. Stat. 412.191, Subd. 4_ Notice is further given that a complete printed copy of the ordinance is available for inspection by any person during normal business hours of the City Clerk, 1880 Main St., Centerville, MN, or will be mailed to anyone requesting it by telephone (651) 429- 3232. Notice is further given that the general purpose of the ordinance is to establish standards and procedures for considering Conditional Uses in the B -1, Commercial District. Section 1. This section amends Chapter 156, section 156.030 by providing listed conditional uses and the standards that should be attached to consider them. Section 2. This section provides that the effective date shall be upon publication of this summary. Notice is further given that the Council has by a minimum 415 vote approved this public notice on the day of .2012. Teresa Bender, City Clerk Published in the Citizen on 2012 II CITY OF CENTEiZIaLLE tervif MONTiYL YENGINEER`S REPORT For the April 11, 2012 City Council Meeting Italics = New information. Normal = No change from last report. 1. 21 Avenue /Backage Road (000616- 05143 -0). This matter is pending in the court system. 2. TE Grant Trail Project (000616- 08165 -0). Construction is complete. Final pay quantity issues are resolved with the exception of traffic control during the state shutdown. Once punch list items are taken care of in the spring, a final payment can be made. 1 2008 Downtown Storm Water Improvemennts (000616- 08167-0). The irrigation system was up and running this fall. Next spring, the contractor will be required to restart the system and demonstrate its proper operation again. Once that is complete, the city will take over maintenance and operation. A public viewing of the system is being planned for early next summer. 4. 2012 Surface Water Management Plan Update (193802232). A draft of the new Surface Water Management Plan has been created and we are working on adding information to it from various sources Our storm water staff has met with Rice Creels Watershed District for a preliminary discussion on the plan and is following up on their input, A draft, ready for staff review should be completed in Me next few weeks. 5. Miscellaneous: The 2012 Street project has been delayed for consideration at a future date. The series of thin overlay projects outlined in the City's updated Pavement Management Plan are to remain on schedule, beginning in 2013. The City's Public Works Staff will begin preparation work for the 2013 project in the summer of 2012, by completing: curb replacements, bituminous patching, water main bolt replacements and other such work which should precede a street overlay.