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HomeMy WebLinkAbout2014-04-09 CC Packet 1 CITY OF CENTERVILLE SPECIAL COUNCIL MEETING r, & JOINT WORK SESSION teryi�Ce W /COMMITTEE /COMMISSIONS AGENDA Wednesday, April 9, 2014 6:00 p.m. or shortly thereafter WORK SESSION 7:00 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 prior to 6:00 p.m. COUNCIL MEETING I. CALL TO ORDER 1. Roll Call II. PLEDGE OF ALLEGIANCE III. AWARDS /PRESENTATIONS /APPEARANCES 1. ABDO, EICK & Meyers — 2013 Annual Audit (Pages 1 -109) iV. PUBLIC HEARING 1. Amending Assessments — Backage Road /Commerce Drive Project (Sheehy Property /City of Centerville) (Pages 110 -111 V. APPROVAL OF AGENDA VI. APPROVAL OF MINUTES 1. March 26, 2014 City Council Meeting Minutes (Pages 112 -118) VII. CONSENT AGENDA 1. City of Centerville March 27, 2014 through April 9, 2014 Claims (Check #28573- 28535) & Voided Check #28606 (Page 119 -120) 2. Centennial Police Department Claims through March 28, 2014 (Check #9839 -9855) w /Check #9772 Voided (Pages 121 -122) 3. Centennial Fire District Claims through March 21, 2014 (Check #6305 -6317) (Page 123) 4. Res. #14 -0XX — Establish a Local Board of Appeals & Equalization, Pursuant to Minnesota Statute 274.014, Subd. 3(c) (Pages 124 -126) 5. P & R Recommendation to Approve Special Event Permit Application — Easter Egg Hunt, Laurie LaMotte Park — April 19, 2014 (8:00 a.m. — 2:00 p.m.) (Pages 127 -132) VIII. OLD BUSINESS IX. NEW BUSINESS 1. Approval of the 2013 Annual Audit & Management Letter 2. Res. #14 -OXX — Amending Special Assessments — Backage Road /Commerce Drive (Sheehy Property /City of Centerville) * *IN DROPBOX WHEN AVAILABLE ** X. ANNOUNMENTS/UPDATES 1. Administrator Larson XI. ADJOURNMENT COUNCIL JOINT WORK SESSION MEETING (Approximately 7:00 p.m.) I. CALL TO ORDER 1. Roll Call II. ITEMS OF DISCUSSION 1. Goals III. ADJOURNMENT *REMINDERS ** Planning & Zoning Commission Meeting — May 6, 2014, 6:30 p.m. (Council Chambers) Parks & Recreation Committee Meeting — May 7, 2014, 6:30 p.m. (Council Chambers) City Council Meeting — May 14, 2014, 6:30 p.m. (Council Chambers) City Council Meeting — April 23, 2014, 6:30 p.m. (Council Chambers) PARK USAGE RESERVATIONS Centennial Little League, Ball field #3, #4 and possibly #5, LaMotte Park — April 1 through August 1, 2014, Monday through Fridays from 4:00 p.m. to dark Ms. Jaci Smetana, Fitness Classes, Parking Lot, Football /Soccer Fields /Shelter, LaMotte Park — April 28 through October 31, 2014, Monday through Thursdays from 5:30 -6:30 a.m. & 6:00 -7:00 p.m. CITY OF CENTERVILLE CENTERVILLE, MINNESOTA MANAGEMENT LETTER FOR THE YEAR ENDED DECEMBER 31, 2013 CITY OF CENTERVILLE CENTERVILLE, MINNESOTA MANAGEMENT LETTER FOR THE YEAR ENDED DECEMBER 31, 2013 March 29, 2014 Management, Honorable Mayor and City Council City of Centerville, Minnesota We have audited the accompanying financial statementsof thegovernmental activities, the business-type activities, each major fund and the aggregate remaining fund information of theCity ofCenterville,Minnesota (the City), forthe year ended December31,2013. Professional standards requirethat we provide you withinformation 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 7, 2013.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 express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformitywith accounting principles generally accepted in the United States ofAmerica. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control 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 over financial reporting. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings In planning and performing our audit, we considered the City’s internal control over financial reporting as a basis for designing auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. deficiency in internal control Aexists when the design or operation of a control does not allow management or employees, in the material normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the following pages as finding 2013-001 to be a material weakness in internal control over financial reporting. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We did not identify any deficiencies in internal control over financial reporting that we consider to be significant deficiencies. 2013-001Material audit adjustment Condition: During analytical testing of expenditures, it was noted that a capital asset was recorded as an expense. Criteria: Accounting principles require that capitalrelated activity be recorded as an asset and not an expense. Cause: The asset was not contemplated with the year-endaccounting entries. Effect: This omission indicates that the City’s system of internal controldid not identify a necessary adjustment. Recommendation: We recommend that management maintain a list of projects in process the identified capital related activity and then evaluates the status of the projects at year end. Management response : TheCity staff has acknowledged that the capital asset activity should have been recorded and has corrected for 2013. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance 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 accountingpolicies.The significant accounting policies used by the City are described in Note 1 to the financial statements.No new accounting policies were adopted and the application of existing policies was not changed during the year.We noted no transactionentered 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 assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements include depreciation on capital assets andallocation of payroll. Management’s estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight-line method. Allocations of gross wages and payroll benefits are approved by City Council within the City’s budget and are derived from each employee’s estimated time to be spent servicing the respective functions of the City. These allocations are also used in allocating accrued compensated absences payable. 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. 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 29, 2014. 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. Other Matters With respect to the supplementary information accompanying the financial statements, we made certain inquiries of managementand evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Financial Position and Results of Operations Our principal observations and recommendations are summarized on the following pages.These recommendations resulted from our observations made in connection with our audit of the City’s financial statements for the year ended December 31, 2013. 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 $52,776from 2012. The fund balance of $1,258,596is59.4percent of the 2014 budgeted expenditures.The total General fund budget is $2,120,416for 2014.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 City Council has acknowledged the amount. The City Council adopted a fund balance resolution and the City is in compliance with this resolution. Statement of Position The Office of the State Auditor (the OSA) has issued a 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 balanceare 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. Expenditures not anticipated at the time the annual budget was adopted may need immediate City 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. A table summarizing the General fund balances in relation to budgeted expenditures and transfers out follows: Percent of Fund TotalGeneral Balance to Fund BalanceBudgetFund Budget YearDecember 31YearBudget 2009$1,231,32620102,184,430$56 % 20101,068,41120112,054,70052 20111,142,32120121,902,80060 20121,205,82020131,914,40063 20131,258,59620142,120,41659 Fund Balances as a Percent of Next Year’s Budget $2,500,000 $2,184,430 $2,120,416 $2,054,700 $1,902,800 $1,914,400 $2,000,000 $1,500,000 56% 59% 63% 60% 52% $1,000,000 $500,000 $- 200920102011201220132014 Actual Fund BalanceBudget We have compiled a peer group average derived from information we requested fromthe Office of the State Auditor for Cities of the 4th class which have populations of 2,500-10,000. In 2011 and 2012, the average General fund balance as a percentage of expenditures was 69 percent and 76, percent, respectively. A summary of the 2013operations is as follows: OriginalFinal BudgetedBudgetedActualVariance with AmountsAmountsAmountsFinal Budget Revenues$2,083,300$2,083,300$2,195,682$112,382 Expenditures1,914,4001,914,4001,900,70313,697 Excess of revenues over expenditures168,900168,900294,979126,079 Other financing sources (uses) Sale of capital assets--10,00010,000 Transfers out(168,900)(168,900)(252,203)(83,303) Total other financing sources (uses)(168,900)(168,900)(242,203)(73,303) Net change in fund balances--52,77652,776 Fund balances, January 11,205,8201,205,8201,205,820- Fund balances, December 31$1,205,820$1,205,820$1,258,596$52,776 Total revenue had a positive budget variance of $112,382. All revenue categories had positive variances, except for interest on investments, which was due to thecost exceeding themarket value of investments. The City holds its investments to maturity and the market value decline is temporary and will not affect the overall cash received. Total expenditures had a positive budget variance of $13,697. Total public safety, public works and economic development expenditures were over budget by a total of $63,500. Total generalgovernmental expenditures, culture and recreation and capital outlay expenditures were under budget by a total of $77,197. The city also transferred $252,203 from the general fund to other funds, which was $83,303 more than budget. City Council approved establishing anew capital equipment fund for $43,303 and $40,000 was authorized to fund future debt payments in the 2006A Debt Service fund. A more detailed comparison of General fundrevenues and transfers for the past three years is as follows: Percent of Per SourceTotal 201120122013Capita Taxes $1,698,512$1,738,970$1,758,24379.6 %$458 Licenses and permits111,842129,424122,9945.632 Intergovernmental163,244222,950203,2129.253 Charges for services8,8107,4965,8890.32 Fines and forfeitures26,99044,83634,8281.69 Special assessments20,35027,54357,8212.615 Interest on investments17,48311,334--- Miscellaneous34,31289,73512,6950.63 Sale of capital assets--10,0000.53 Transfers in12,480---- Total revenues and transfers$2,094,023$2,272,288$2,205,682100.0 %$575 The sources of General fund revenues are presented graphically as follows: Revenues and Transfers In $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- 201120122013 Taxes Licenses and permits IntergovernmentalOther A summary of the past three years General fund expenditures and transfers is as follows: Percent Peer of PerGroup Per ProgramTotal 201120122013CapitaCapita Current General government$521,796$475,742$440,344 %20.5$115$125 Public safety1,018,0721,009,2001,051,59148.9274218 Public works322,042408,361297,47113.877106 Culture and recreation89,93482,68473,9063.41954 Economic development7,6282,4002,0380.114 Miscellaneous5,7095,5695,9500.3212 Total current1,965,1811,983,9561,871,30086.9488519 Capital outlay22,10029,00029,4031.4834 Debt service6,7326,833 ---- Transfers out26,100189,000252,20311.766- Total expenditures and transfers$2,020,113$2,208,789$2,152,906 %100.0$562$553 The above chart compares the amount the City spends per capita, in comparison to a peer group. The peer group average is th derived from information we requested fromthe Office of the State Auditor for Cities of the 4class 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 $- 201120122013 General government Public safety Public worksOther 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 Balances December 31, Increase Fund 20132012(Decrease) Nonmajor Cable T.V.$15,061$20,126$(5,065) 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 for all capital projects funds follows: Fund Balances December 31, Increase Fund 20132012(Decrease) Major Park$(1,086,915)$(1,070,527)$(16,388) 2013 Street Project237,170-237,170 Nonmajor Revolving Street 350,646187,850162,796 Pedestrian Trail Ways15,622(2,763)18,385 Capital Equipment Revolving43,303-43,303 Total$(440,174)$(885,440)$445,266 The City shouldcontinue toannuallyevaluate 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 eitherby future charges or by transfers from other funds. The deficit fund balance in the Park fund of $1,086,915is due to a transfer out of $825,000 in 2011 to the Pedestrian Trail Ways tofundthe project plan.The increase in the 2013 Street project fund is due to bond proceeds and other activity remaining for the completion of the project. The Revolving Street fund increased mainlydue to a transfer from the General fund. A transfer of $43,303 from the General fund was used to establish a new Capital Equipment Revolving fund. Debt Service Funds Debt Service funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt (other than enterprise fund debt). Debt Service funds may have one or a combination of the following revenue sources pledged to retire debt as follows: Property taxes - Primarily for general City benefit projects such as parks and municipal buildings.Property taxes may also be used to fund special assessment bonds which are not fully assessed. Tax increments - Pledged exclusively for tax increment/economic development districts. Capitalized interest portion of bond proceeds - After the sale of bonds, the project may not produce revenue (tax increments or special assessments) for a period of one to two years.Bonds are issued with this timing difference considered in the form of capitalized interest. Special assessments - Charges to benefited properties for various improvements. In addition to the above pledged assets, other funding sources may be received by Debt Service funds as follows: Residual project proceeds from the related capital projects fund Investment earnings State or federal grants Transfers from other funds A comparison of the assets of each fund and theremaining bonds outstanding at year end are as follows: Cash and TemporaryTotalBonds Fund InvestmentsAssetsOutstandingMaturity 309Joint Police Station 2005A$55,044$61,712$455,0002021 348G.O. Crossover Bonds of 2009B374,315412,0311,945,0002018 349G.O. Improvement Bonds of 2011A427,360892,9352,215,0002019 351G.O. Improvement Bonds of 2009A879,6661,590,1023,450,0002025 352G.O. Improvement Bonds of 2013A60,711315,7551,485,0002029 Total$1,797,096$3,272,535$9,550,000 Water Fund Water Utility Cash Flow $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- 20102010 Receipts20112011 Receipts20122012 Receipts20132013 Receipts DisbursementsDisbursementsDisbursementsDisbursements Operating costsOther (capital, etc.)Operating receiptsOther (connection, interest, etc.) A graphic representation of the cash flow statement of the Water fund is shown above. As you can see, operating receipts have covered operating expenses over the past four years. The other receipt category is mostly connection fee and interestearnings. Water Utility Cash Reserve Target $1,400,000 $1,288,411 $1,210,365 $1,200,000 $1,074,848 $961,881 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- 2010201120122013 UnrestrictedMinimum target balance (35% of operating costs) Cash balance in the Water fund continues to be strong. Amounts above the target may be considered a reserve for future capital and/or unexpected expenses. Regardless of the strong cash position relative to expenses, it is important for the City to monitor funds to ensure they have enough cash to cover future operations and future capital needs. Sewer Fund Sewer Utility Cash Flow $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- 20102010 Receipts20112011 Receipts20122012 Receipts20132013 Receipts DisbursementsDisbursementsDisbursementsDisbursements Operating costsOther (capital, interfund, etc.)Operating receiptsOther (connections, interfund, etc.) A graphic representation of the cash flow statement of the Water fund is shown above. As you can see, operating receipts have covered operating expenses, except for in 2013when they were slightly less. The other receipt category is mostly connection fee and interfund receipts. The table below represents the amounts due from other funds. 2010201120122013 Due from other funds$2,038,474$2,050,776$23,000$23,000 Sewer Utility Cash Reserve Target $1,000,000 $946,137 $905,212 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $222,280 $169,273 $200,000 $100,000 $- 2010201120122013 UnrestrictedMinimum target balance (35% of operating costs) The Sewer fund operated at a loss again in 2013 but continues to show an increase in cash flow mainly due to the repayments onthe interfund loan.The fund currently is owed $1,191,917from other funds. A large percentage of total expense in this fund comes from depreciation. The City needs to continue monitoring cash flow and reviewratesannuallyto aim towards an operating incomeand future capital needs. Storm Water Fund Storm Water Utility Cash Flow $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- 20102010 Receipts20112011 Receipts20122012 Receipts20132013 Receipts DisbursementsDisbursementsDisbursementsDisbursements Operating costsOther (capital, interfund, etc.)Operating receiptsOther (transfers, interest earnings, etc.) A graphic representation of the cash flow statement of the Storm Water fund is shown above. As you can see, operating receipts have covered operating expenses over the past four years. The other receipt category is mostly transfers in (in 2010)and interest earnings. 2010201120122013 Due to other funds$110,000$110,000$65,650$43,980 Storm Water Utility CashReserve Target $189,770 $200,000 $180,000 $160,000 $130,947 $130,644 $140,000 $120,592 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- 2010201120122013 UnrestrictedMinimum target balance (35% of operating costs) The Strom Water fund has a cash balance just under the target balance. However, the fund also has an interfund payable in the amount of $66,980.The City needs to continue monitoring cash flow and review rates annually to aim towards an operating income and future capital needs. 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 we requested from theOffice of the State Auditor. Different peer th group averages were used for Cities of the 4class (population 2,500 – 10,000).The majority of these ratios facilitate the use of economic resources focus and accrual basisof 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 CalculationSource2010201120122013 Debt to assetsTotal liabilities/total assetsGovernment-wide28%31%31%31% 37%33%33%N/A Debt per capitaBonded debt/populationGovernment-wide$2,159$2,459$2,310$2,486 $3,125$2,826$2,626N/A Taxes per capitaTax revenues/populationGovernment-wide$433$442$456$455 $407$500$480N/A Current expenditures per capitaGovernmental fund currentGovernmental funds$525$528$526$507 $624$640$649N/A expenditures/population Capital expenditures per capitaGovernmental fund capitalGovernmental funds$370$246$33$330 $265$229$298N/A expenditures/population Capital assets % left to Net capital assets/Government-wide82%79%74%72% 61%64%65%N/A depreciate - Governmentalgross capital assets Capital assets % left to Net capital assets/Government-wide75%69%66%64% 59%65%63%N/A depreciate - Business-typegross capital assets Represents the City of Centerville Represents Peer Group Average 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 financedwith 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 ofbonded 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 Cityand 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. Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future (1) City financial statements: GASB Statement No. 67The Financial Reporting for Pension Plans- an Amendment to GASB Statement No. 25 - Summary The objective of this Statement is to improve financial reporting by state and local governmental pension plans. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. Financial Reportingfor Defined Benefit Pension Plans and Note This Statement replaces the requirements of Statements No. 25, Disclosures for Defined Contribution PlansPension Disclosures , and No. 50,, as they relate to pension plans that are administered through trusts or equivalent arrangements (hereafter jointly referred to as trusts) that meet certain criteria. The requirements of Statements No. 25 and No. 50 remain applicable to pension plans that are not administered through trusts covered by the scope of this Statement and to defined contribution plans that provide postemployment benefits other than pensions. This Statement is effective for financial statements for fiscal years beginning after June 15, 2013. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting primarily through enhanced note disclosures and schedules of required supplementary information that will be presented by the pension plans that are within its scope. The new information will enhance the decision-usefulness of the financial reports of these pension plans, their value for assessing accountability, and their transparency by providing information about measures of net pension liabilities and explanations of how and why those liabilities changedfrom year to year. The net pension liability information, including ratios, will offer an up-to-date indication of the extent to which the total pension liability is covered by the fiduciary net position of the pension plan. The comparability of the reported information for similar types of pension plans will be improved by the changes related to the attribution method used to determine the total pension liability. The contribution schedule will provide measures to evaluate decisions related to the assessment of contribution rates in comparison to actuarially determined rates, when such rates are determined. In that circumstance, it also will provide information about whether employers and nonemployer contributing entities, if applicable, are keeping pace with actuarially determined contribution measures. In addition, new information about rates of return on pension plan investments will inform financial report users about the effects of market conditions on the pension plan's assets over time and provide information for users to assess the relative success of the pension plan's investment strategy and the relative contribution that investment earnings provide to the pension plan's ability to pay benefits to plan members when they come due. Future Accounting Standard Changes - Continued GASB Statement No. 68The Accounting and Financial Reporting of Pensions- an Amendment of GASB Statement No. 27 - The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. This Statement replaces the requirements ofStatement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements ofStatement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension plans administered as trusts or equivalent arrangements (hereafter jointly referred to as trusts) that meet certain criteria. The requirements ofStatements 27and50remain applicable for pensions that are not covered by the scope of this Statement. This Statement is effective for fiscal years beginning after June 15, 2014. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve the decision-usefulness of information in employer and governmental nonemployer contributing entity financial reports and will enhance its value for assessing accountability and interperiod equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense. Decision- usefulness and accountability also will be enhanced through new note disclosures and required supplementary information. GASB Statement No. 69 -Government Combinations and Disposals of Government Operations Summary This Statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. As used in this Statement, the term government combinations include a variety of transactions referred to as mergers, acquisitions, and transfers of operations. The distinction between a government merger and a government acquisition is based upon whether an exchange of significant consideration is present within the combination transaction. Government mergers include combinations of legally separate entities without the exchange of significant consideration. This Statement requires the use of carrying values to measure the assets and liabilities in a government merger. Conversely, government acquisitions are transactions in which a government acquires another entity, or its operations, in exchange for significant consideration. This Statement requires measurements of assets acquired and liabilities assumed generally to be based upon their acquisition values. This Statement also provides guidance for transfers of operations that do not constitute entire legally separate entities and in which no significant consideration is exchanged. This Statement defines the term operations for purposes of determining the applicability of this Statement and requires the use of carrying values to measure the assets and liabilities in a transfer of operations. A disposal of a government's operations results in the removal of specific activities of a government. This Statement provides accounting and financial reporting guidance for disposals of government operations that have been transferred or sold. This Statement requires disclosures to be made about government combinations and disposals of government operations to enable financial statement users to evaluate the nature and financial effects of those transactions. The requirements of this Statement are effective for government combinations and disposals of government operations occurring in financial reporting periods beginning after December 15, 2013, and should be applied on a prospective basis. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting Until now, governments have accounted for mergers, acquisitions, and transfers of operations by analogizing to accounting and financial reporting guidance intended for the business environment, generally APB Opinion No. 16, Business Combinations. This Statement provides specific accounting and financial reporting guidance for combinations in the governmental environment. This Statement also improves the decision usefulness of financial reporting by requiring that disclosures be made by governments about combination arrangements in which they engage and for disposals of government operations. Future Accounting Standard Changes - Continued GASB Statement No. 70 - Accounting and Financial Reporting for Nonexchnage Financial Guarantees Summary Some governments extend financial guarantees for the obligations of another government, a not-for-profit organization, a private entity, or individual without directly receiving equal or approximately equal value in exchange (a nonexchange transaction). Asa part of this nonexchange financial guarantee, a government commits to indemnify the holder of the obligation if the entity or individual that issued the obligation does not fulfill its payment requirements. Also, some governments issue obligations thatare guaranteed by other entities in a nonexchange transaction. The objective of this Statement is to improve accounting and financial reporting by state and local governments that extend and receive nonexchange financial guarantees. This Statement requires a government that extends a nonexchange financial guarantee to recognize a liability when qualitative factors and historical data, if any, indicate that it is more likely than not that the government will be required to make a payment on the guarantee. The amount of the liability to be recognized should be the discounted present value of the best estimate of the future outflows expected to be incurred as a result of the guarantee. When there is no best estimate but a range of the estimated future outflowscan be established, the amount of the liability to be recognized should be the discounted present value of the minimum amount within the range. This Statement requires a government that has issued an obligation guaranteed in a nonexchange transaction to report the obligation until legally released as an obligor. This Statement also requires a government that is required to repay a guarantor for making a payment on a guaranteed obligation or legally assuming the guaranteed obligation to continue to recognize a liability until legally released as an obligor. When a government is released as an obligor, the government should recognize revenue asa result of being relieved of the obligation. This Statement also provides additional guidance for intra-entity nonexchange financial guarantees involving blended component units. This Statement specifies the information required to be disclosed by governments that extend nonexchange financial guarantees. In addition, this Statement requires new information to be disclosed by governments that receive nonexchange financial guarantees. The provisions of this Statement are effective for reporting periods beginning after June 15, 2013. Earlier application is encouraged. Except for disclosures related to cumulative amounts paid or received in relation to a nonexchange financial guarantee, the provisions of this Statement are required to be applied retroactively. Disclosures related to cumulative amounts paid or received in relation to a nonexchange financial guarantee may be applied prospectively. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will enhance comparability of financial statements among governments by requiring consistent reporting by those governments that extend nonexchange financial guarantees and by those governments that receive nonexchange financial guarantees. This Statement also will enhance the information disclosed about a government's obligations and risk exposure from extending nonexchange financial guarantees. This Statement also will augment the ability of financial statement users to assess the probability that governments will repay obligation holders by requiring disclosures about obligations that are issued with this type of financial guarantee. Future Accounting Standard Changes - Continued GASB Statement No. 71Pension Transition for Contributions Made Subsequent to the Measure Date - an Amendment of - GASB Statement No. 68 Summary The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or nonemployer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. Statement No. 68 requires a state or local government employer (or nonemployer contributing entity in a special funding situation) to recognize a net pension liability measured as of a date (the measurement date) no earlier than the end of its prior fiscal year. If a state or local government employer or nonemployer contributing entity makes a contribution to a defined benefit pension plan between the measurement date of the reported net pension liability and the end of the government's reporting period, Statement No. 68 requires that the government recognize its contribution as a deferred outflow of resources. In addition, Statement No. 68 requires recognition of deferred outflows of resources and deferred inflows of resources for changes in the net pension liability of a state or local government employer or nonemployer contributing entity that arise from other types of events. At transition to Statement No. 68, if it is not practical for an employer or nonemployer contributing entity to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions, paragraph 137 of Statement No. 68 required that beginning balances for deferred outflows of resources and deferred inflows of resources not be reported. Consequently, if it is not practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions, contributions made after the measurement date of the beginning net pension liability could not have been reported as deferred outflows of resources at transition. This could have resulted in a significant understatement of an employer or nonemployer contributing entity's beginning net position and expense in the initial period of implementation. This Statement amends paragraph 137 of Statement No. 68to require that, at transition, a government recognize a beginning deferred outflow of resources for its pension contributions, if any, made subsequent to the measurement date of the beginningnet pension liability. Statement No. 68, as amended, continues to require that beginning balances for other deferred outflows of resources and deferred inflows of resources related to pensions be reported at transition only if it is practical to determine all such amounts. The provisions of this Statement are required to be applied simultaneously with the provisions of Statement No. 68. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will eliminate the source of a potential significant understatement of restated beginning net position and expense in the first year of implementation of Statement No. 68 in the accrual-basis financial statements of employers and nonemployer contributing entities. This benefit will be achieved without the imposition of significantadditional costs. 1 Note . From GASB Pronouncements Summaries. Copyright 2014 by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, USA, and is reproduced with permission. * * * * * * This communication is intended solely for the information and use of the City Council, management and the Minnesota Office of the State Auditor and is not intended and should not be used by anyone other than those specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If youhave any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us byyour staff. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota March 29, 2014 CITY OF CENTERVILLE CENTERVILLE, MINNESOTA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2013 THIS PAGE IS LEFT BLANK INTENTIONALLY CITY OF CENTERVILLE, MINNESOTA ANNUAL FINANCIAL REPORT TABLE OF CONTENTS FOR THE YEAR ENDED DECEMBER 31, 2013 Page No. INTRODUCTORY SECTION Elected and Appointed Officials5 FINANCIAL SECTION Independent Auditor’s Report9 Management’s Discussion and Analysis13 Basic Financial Statements Government-wide Financial Statements Statement of Net Position27 Statement of Activities28 Fund Financial Statements Governmental Funds Balance Sheet32 Reconciliation of theBalance Sheet to the Statement of Net Position35 Statement of Revenues, Expenditures and Changes in Fund Balances 36 Reconciliation of theStatement of Revenues, Expenditures and Changes in Fund Balances tothe Statement of Activities38 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual39 Proprietary Funds Statements of Net Position40 Statements of Revenues, Expenses and Changes in Net Position44 Statements of Cash Flows46 Notes to the FinancialStatements51 Combining and Individual Fund Financial Statementsand Schedules Nonmajor Governmental Funds Combining Balance Sheet72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 73 General Fund Scheduleof Revenues, Expenditures and Changes in Fund Balances - Budget and Actual75 Debt Service Funds Combining Balance Sheet80 Combining Scheduleof Revenues, Expenditures and Changes in Fund Balances 82 Summary Financial Report Revenues and Expenditures for General Operations - Governmental Funds84 OTHER REQUIRED REPORT Independent Auditor’s Report on Minnesota Legal Compliance87 INTRODUCTORY SECTION CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 CITY OF CENTERVILLE, MINNESOTA ELECTEDAND APPOINTED OFFICIALS FOR THE YEAR ENDED DECEMBER 31, 2013 ELECTED NameTitleTerm Expires Thomas WilharberMayor01/01/15 Steve KingCouncil Member01/01/15 Ben FehrenbacherCouncil Member01/01/17 Jeff PaarCouncil Member01/01/17 D. LoveCouncil Member01/01/15 APPOINTED Dallas LarsonCity Administrator Teresa BenderCity Clerk Ellie PaulsethFinance Director FINANCIAL SECTION CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and City Council City of Centerville, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Centerville, Minnesota (the City), as of and for the year ended December 31, 2013,and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit.The prior year comparative information has been derived from the City’s 2012financial statements and, in our report dated March 20,2013we express unmodifiedopinions 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriatein the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2013, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis starting on page 13be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries,the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’sbasic financial statements.The introductory section and combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial 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 basic financial statementsas a whole. The introductory section hasnot been subjected to the auditing procedures applied in the audit of the basic financial statements,and accordingly, we do not express an opinion or provide any assurance on it. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota March 29, 2014 Management’s Discussion and Analysis As management of the City of Centerville, 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, 2013. Financial Highlights The assets of the City exceeded its liabilitiesat the close of the most recent fiscal year by $21,686,182 (net position). Of this amount, $4,461,946(unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors. The City’s total net positionincreased$343,121.A further breakdown of net position ischronicled under Government wide financial statement analysis. At the end of the current fiscal year, unassignedfund balance for the General fund was $1,253,989, or 66.0percentof total General fund expenditures. The City’s total debt increased $262,259, during the current fiscal year.The increase was mainly due tothe issuance of the refunding 2013A bond issue, which was offset by regularly scheduled debt payments 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 contains other supplemental information in addition to the basic financial statements themselves. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed 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 a section 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 Components of the City’s Annual Financial Report Management's Basic Required Discussion and Financial Supplementary Analysis StatementsInformation Government-FundNotes to the wide Financial Financial Financial StatementsStatementsStatements SummaryDetail 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 explains the structure and contents of each of the statements. Figure 2 Major features of the Government-wide and Fund Financial Statements Fund Financial Statements Government-wide StatementsGovernmental FundsProprietaryFunds ScopeEntire City government(except The activities of the Citythat are Activities the City operates fiduciary funds)and the City’s not proprietary or fiduciary, such similar to private businesses, component unitsas police, fire and parkssuch as the water and sewer system Required financial Statement of Net PositionBalance SheetStatementsof Net statements Position Statement of ActivitiesStatement of Revenues, Statements of Revenues, Expenditures, and Changes in Fund Balances Expenses and Changes in Net Position Statementsof Cash Flows Accounting Basis and Accrual accounting and Modified accrual accounting and Accrual accounting and measurement focuseconomic resources focuscurrent financial resources focuseconomic resources focus Type of asset/liability All assets and liabilities, both Onlyassets expected to be used All assets and liabilities, both informationfinancial and capital, and short-up and liabilities that come due financial and capital, and term and long-termduring the year or soon thereafter; short-term and long-term no capital assets included Type of deferred All deferred inflows of Only deferred inflows of All deferred inflows of Inflows of resources resources, regardless of when resources that come due during resources, regardless of when Informationcash is received or paidthe year or soon thereafter; no cash is received or paid capital assets included Type of inflow/out All revenues and expenses Revenues for which cash is All revenues and expenses flow informationduring year, regardless of when received during or soon after the during the year, regardless of cash is received or paidend of the year; expenditures when cash isreceived or paid when goods or services have been received and payment is due during the year or soon thereafter Government-wide financial statements. The government-wide financial statementsare designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net positionpresents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net positionmay serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activitiespresents information showing how the City’s net positionchanged during the most recent fiscal year. All changes in net positionare reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacationleave). Both of the government-wide financial statements distinguish functions of 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, 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 27of this report. Fund financial statements. Afundis 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 compliancewith finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. . Governmental fundsGovernmental fundsare used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental 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 a reconciliation to facilitate this comparison between governmental fundsand governmental activities. The City maintains 12 individual governmental funds, fiveof which are Debt Service funds. Information is presented separately in the governmentalfund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General, Debt Service, Park funds, and 2013 Street Project. Data from the other fournon-majorgovernmental funds are combined into asingle, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements or 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. Proprietary fund. The City maintains one type of proprietary fund. Enterprise fundsare used to report the same functions presented as business-type activitiesin the government-wide financial statements. The City uses enterprise funds to account for its water, sewer and storm water. The proprietary fund provides the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information 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 information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 51of this report. Other information. The combining statements referred to earlier in connection with non-major governmental funds are presented following the notes to the financial statements. Combining and individual fundstatements and schedules start on page 72of this report. Government-wide Financial Analysis As noted earlier, net positionmay serve over time as a useful indicator of a government’s financial position. In the case of the City, assets exceeded liabilities by $21,686,182at the close of the most recent fiscal year. By far, the largest portion of the City’s net position ( 63percent) 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 thesecapital 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 position Governmental ActivitiesBusiness-type Activities IncreaseIncrease 20132012(Decrease)20132012(Decrease) Assets Current and other assets$4,394,334$4,169,758$224,576$4,174,554$4,175,666$(1,112) Capital assets16,220,21415,905,997314,2176,852,1376,872,677(20,540) Total assets20,614,54820,075,755538,79311,026,69111,048,343(21,652) Liabilities Noncurrent liabilities outstanding9,586,9319,327,285259,64615,71513,1022,613 Other liabilities336,438374,124(37,686)15,97366,526(50,553) Total liabilities9,923,3699,701,409221,96031,68879,628(47,940) Net position Net investment in capital assets6,907,3847,126,016(218,632)6,852,1376,872,677(20,540) Restricted for Future expansion---71,63171,631- Debt service3,140,8532,945,918194,935--- Capital projects237,170-237,170--- Cable TV15,06120,126(5,065)--- Unrestricted 390,711282,286108,4254,071,2354,024,40746,828 Total net position$ 10,691,179$ 10,374,346$316,833$ 10,995,003$ 10,968,715$26,288 An additional portion of the City’s netposition (16.0percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($4,461,946) 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 position, 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. Governmental activities . Governmental activities increased the City’s net positionby $316,833. Key elements of this increaseare as follows: City of Centerville’s Changes inNet position Governmental ActivitiesBusiness-type Activities IncreaseIncrease 20132012(Decrease)20132012(Decrease) Revenues Program revenues Charges for services$377,142$441,643$(64,501)$813,789$785,561$28,228 Operating grants and contributions87,73776,10811,6292,625-2,625 Capital grants and contributions337,928176,630161,298635,760156,356479,404 General revenues Taxes Property taxes/tax increments1,742,7421,734,5468,196--- Property taxes, levied for debt service528,766528,257509--- Other taxes6,2801,1575,123--- Grants and contributions not restricted to specific programs1,43117,673(16,242)--- Unrestricted investment earnings6,86230,478(23,616)35,09435,738(644) Gain on sale of capital assets10,000-10,000--- Miscellaneous-420(420)--- Total revenues3,098,8883,006,91291,9761,487,268977,655509,613 Expenses General government454,273491,268(36,995)--- Public safety1,056,2821,011,26545,017--- Public works1,188,5381,272,361(83,823)--- Culture and recreation203,827178,19225,635--- Economic development2,0382,400(362)--- Interest on long-term debt265,393310,937(45,544)--- Water---487,667349,521138,146 Sewer---481,188433,79247,396 Storm Water---103,82989,28214,547 Total expenses3,170,3513,266,423(96,072)1,072,684872,595200,089 Increase (decrease) in net position before transfers(71,463)(259,511)188,048414,584105,060309,524 Capital contributions to other funds-(271,886)271,886-271,886(271,886) Transfers 388,296(10,464)398,760(388,296)10,464(398,760) Change in net position 316,833(541,861)858,69426,288387,410(361,122) Net position, January 110,374,34610,916,207(541,861)10,968,71510,581,305387,410 Net position, December 31$ 10,691,179$ 10,374,346$316,833$ 10,995,003$ 10,968,715$26,288 Capitaland operatinggrantsand contributions increased in both governmental and business due tospecial assessments for street projects. The following graph depicts various governmental activities and shows the program revenues and expenses directly related to those activities. Expenses and Program Revenues - Governmental Activities $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- GeneralPublic safetyPublic worksCulture andEconomicInterest on long- governmentrecreationdevelopmentterm debt Program revenuesExpenses Revenues by Source - Governmental Activities Capital grants and contributions 13.2% Operating grants and contributions 3.4% Taxes 68.3% Charges for services 14.7% Unrestricted Grants and investment earnings contributions not 0.3% restricted 0.1% Business-type activities . Business-type activities increasedthe City’s net positionby $26,288.Key elements of this increase areas follows: Expenses and Program Revenues - Business-type Activities $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- WaterSewerStorm water Program revenuesExpenses Revenues by Source - Business-type Activities Investment earnings 2.4% Capital grants and contributions 42.8% Charges for services 54.8% A further breakdown of expenses is shown below: Governmental ActivitiesBusiness-type Activities IncreaseIncrease 20132012(Decrease)20132012(Decrease) Personnel costs$539,125$582,993$(43,868)$209,426$211,814$(2,388) Supplies39,35841,904(2,546)126,40819,871106,537 Other charges for services1,305,7441,373,891(68,147)735,520639,26096,260 Capital outlay35,891114,019(78,128)--- Total$1,920,118$2,112,807$(192,689)$1,071,354$870,945$200,409 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 fundsis to provide information on near-term inflows, outflows and balances of spendableresources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balancemay 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 December 31, Increase Major Funds 20132012 (Decrease) General $1,258,596$1,205,820$52,776 The General fund balance has increased from 2012 and is strong moving into 2013. The fund also transferred out $208,900 during the year. Debt Service$1,832,254$1,866,410$(34,156) The Debt Service fund increased $34,156. The City manages cash flow in all Debt Service funds and ensures adequate resources exist to fund future obligations. Park$(1,086,915)$(1,070,527)$(16,388) The Park fund balance decreased about $16,000 from the previous year. Which is due to interest paid on the interfund loan. 2013 Street Project$237,170$-$237,170 The 2013 Street project fund balance increased $436,230 during the year. Major activity in the fund included bond proceeds of $1,477,493 as well as $1,030,985 of capital expenditures for the street project. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $2,665,737, an increaseof $458,821in comparison with the prior year. Approximately 6.2percent of this total amount or $164,033constitutes unassignedfund balance, which is available for spending at the City’s discretion. The remainder of fund balance ($2,501,704) is not available for spending because it is either: 1) nonspendable ($30,229), 2) restricted ($2,058,863,3) committed ($3,041)or assigned ($409,571) for the purposes described in the fund balance section of each balance sheet. 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 positionof the enterprise funds at the end of the year amounted to $4,071,235. The total increasein net positionfor the funds was $26,288. Other factors concerning the finances of this fund have already been addressed in the discussion of the City’s business-type activities. 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 negativebudget variance, and overall the General fund had a net positive budget variance of $95,499. Some of the significant variances can be briefly summarized as follows: Total revenue had a positive budget variance of $112,382.All revenue categories had positive variances, except for interest on investments, which was due to the market value loss on investments. Total expenditures had a positivebudget variance of $13,697.Total public safety, public worksand economic development expenditures were over budget by a total of $63,500.Total general governmental expenditures, culture and recreation and capital outlay expenditures were under budget by a total of $77,197. The city also transferred $252,203 from the General fund to other funds, which was $83,303 more than anticipated. Capital Asset and Debt Administration Capital assets. The City’s investment in capital assets for its governmental and business-type activities as of December31,2013, amounts to $23,072,351(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: The 2013 street and utility project will be completed in 2014. The City has incurred $1,455,217 of expense for this project as of December 31, 2013. The City made improvements to a Volleyball Court Purchase of a generator to be used in the public safety department. The City installed new water lines related to the Mount Trail Extension. Additional information on the City’s capital assets can be found in Note 3B start on page 60 of this report. City of Centerville’s Capital Assets ( net of depreciation) Governmental ActivitiesBusiness-type Activities IncreaseIncrease 20132012(Decrease)20132012(Decrease) Land$3,337,023$3,337,023$-$200,655$196,255$4,400 Construction in progress1,229,234-1,229,234225,983-225,983 Buildings897,692934,982(37,290)365,010373,290(8,280) Infrastructure10,487,34111,329,577(842,236)5,963,3616,175,919(212,558) Machinery and equipment268,924304,415(35,491)97,128127,213(30,085) Total$ 16,220,214$ 15,905,997$314,217$6,852,137$6,872,677$(20,540) Street Maintenance Program. Beginningin 2012 the City began annually accumulating funds for a street maintenance program that will consist of mill and overlay to each segment of street in the city, at approximately every twelve year intervals. The initial construction program begins in 2014and is anticipated to cost around $400,000, to be paid from funds accumulated in a revolving improvement account. A minimal special assessment of around $500 per residential lot will cover approximately 20% of the cost, which combined with the City levy contribution each year, should sustain the program. Each year going forward, a similar project is anticipated. Equipment Funding. In 2012, the City Council approved as part of the budget, a capital replacement program for equipment and other assets that have predictable replacement cycles. All major street equipment, building roofs, carpets and similar items will be funded through an equipment replacement fund that will be sustained by an annual levy. Likewise, the enterprise funds have identified equipment and other assets that need periodic upgrading and replacement. Sufficient retained earnings will be protected to allow these repairs/replacements to be completed without incurring debt. Long-term debt .At the end of the current fiscal year, the City had total bonded debt outstanding of $9,550,000. While all of the City’s bonds have revenue streams, they are all backed by the full faith andcredit of the City. City of Centerville’s Outstanding Debt Governmental ActivitiesBusiness-type Activities IncreaseIncrease 20132012(Decrease)20132012(Decrease) General obligation bonds$9,550,000$9,294,981$255,019$-$-$- Compensated absences payable36,93132,3044,62715,71513,1022,613 Total$9,586,931$9,327,285$259,646$15,715$13,102$2,613 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 $292,948,400which calculatesto a debt margin of $8,788,452. 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 $455,000of general obligation debt outstanding leaving a debt margin of $8,333,452. Additional information on the City’s long-term debt can be found in Note 3E startingon page 63 of this report. Economic Factors and Next Year’s Budgets and Rates The area economy is finally showing signs of improving. Property values for 2014 for payable year 2015 in the city, increased for the first time in several years. The City General Fund Budget was increased for 2014 approximately 1.8% but the levy again remained flat, largely due to new local government aid anticipated in 2014. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all parties interested. Questions concerning any of the information providedin this report or requests for additional financial information should be addressed to the City Administrator, City of Centerville, 1880 Main Street, Centerville, Minnesota, 55038. GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 CITY OF CENTERVILLE, MINNESOTA STATEMENT OF NET POSITION DECEMBER 31, 2013 GovernmentalBusiness-type ActivitiesActivitiesTotal ASSETS Cash and temporary investments$ 3,840,485$ 2,287,146$ 6,127,631 Receivables Accrued interest9,518-9,518 Taxes95,090-95,090 Accounts11,006232,883243,889 Special assessments1,472,371508,4911,980,862 Due from other governments60,572-60,572 Internal balances(1,124,937)1,124,937- Inventories-4,7694,769 Prepaid items30,22916,32846,557 Capital assets Land and construction and progress4,566,257426,6384,992,895 Depreciable assets (net of accumulated depreciation)11,653,9576,425,49918,079,456 TOTAL ASSETS20,614,54811,026,69131,641,239 LIABILITIES Accounts and contracts payable131,5489,173140,721 Accrued salaries payable3,5941,0814,675 Due to other governments3,3075,7199,026 Accrued interest payable131,682-131,682 Deposits payable66,307-66,307 Noncurrent liabilities Due within one year887,03612,979900,015 Due in more than one year8,699,8952,7368,702,631 TOTAL LIABILITIES9,923,36931,6889,955,057 NET POSITION Net investment in capital assets6,907,3846,852,13713,759,521 Restricted for Future expansion-71,63171,631 Debt service3,140,853-3,140,853 Capital projects237,170-237,170 Cable TV15,061-15,061 Unrestricted 390,7114,071,2354,461,946 TOTAL NET POSITION$10,691,179$10,995,003$21,686,182 The notes to the financial statements are an integral part of this statement. CITY OF CENTERVILLE, MINNESOTA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2013 Program Revenues OperatingCapital Grants Charges forGrants and and Functions/ProgramsExpensesServicesContributionsContributions Governmental activities General government$ 454,273$ 87,481$ -$ - Public safety1,056,282233,77669,415- Public works1,188,53840,11318,322337,928 Culture and recreation203,82711,141-- Economic development2,0384,631-- Interest on long-term debt265,393--- Total governmental activities3,170,351377,14287,737337,928 Business-type activities Water487,667327,9482,625580,989 Sewer481,188389,134-54,771 Storm water103,82996,707-- Total business-type activities1,072,684813,7892,625635,760 Total $ 4,243,035$ 1,190,931$ 90,362$ 973,688 General revenues Taxes Property taxes, levied for general purposes Property taxes, levied for debt service Gambling taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets Transfers - internal activities Total general revenues and transfers Change in net position Net position, January 1 Net position, December 31 The notes to the financial statements are an integral part of this statement. Net (Expenses) Revenues and Changes in Net Position GovernmentalBusiness-type ActivitiesActivitiesTotal $ (366,792)$ -$ (366,792) (753,091)-(753,091) (792,175)-(792,175) (192,686)-(192,686) 2,593-2,593 (265,393)-(265,393) (2,367,544)-(2,367,544) -423,895423,895 -(37,283)(37,283) -(7,122)(7,122) -379,490379,490 (2,367,544)379,490(1,988,054) 1,742,742-1,742,742 528,766-528,766 6,280-6,280 1,431-1,431 6,86235,09441,956 10,000-10,000 388,296(388,296)- 2,684,377(353,202)2,331,175 316,83326,288343,121 10,374,34610,968,71521,343,061 $10,691,179$10,995,003$21,686,182 FUNDFINANCIAL STATEMENTS CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 CITY OF CENTERVILLE, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2013 101300's402 Debt GeneralServicePark ASSETS Cash and temporary investments$ 1,283,695$ 1,797,096$ 38,022 Receivables Accrued interest9,518-- Taxes86,4228,668- Accounts11,006-- Special assessments31,2221,441,149- Due from other governments49,931-- Prepaid items4,60725,622- TOTAL ASSETS$ 1,476,401$ 3,272,535$ 38,022 LIABILITIES Accounts and contracts payable$ 61,123$ -$ - Deposits payable66,307-- Accrued salaries payable3,508-- Due to other governments3,307-- Advances from other funds--1,124,937 TOTAL LIABILITIES134,245-1,124,937 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes52,560-- Unavailable revenue - special assessments31,0001,440,281- TOTAL DEFERRED INFLOWS OF RESOURCES83,5601,440,281- FUND BALANCES Nonspendable4,60725,622- Restricted-1,806,632- Committed3,041-- Assigned--- Unassigned1,250,948-(1,086,915) TOTAL FUND BALANCES 1,258,5961,832,254(1,086,915) TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE$ 1,476,401$ 3,272,535$ 38,022 The notes to the financial statements are an integral part of this statement. 452 2013OtherTotal StreetGovernmentalGovernmental ProjectFundsFunds $ 303,105$ 418,567$ 3,840,485 --9,518 --95,090 --11,006 --1,472,371 -10,64160,572 --30,229 $ 303,105$ 429,208$ 5,519,271 $ 65,935$ 4,490$ 131,548 --66,307 -863,594 --3,307 --1,124,937 65,9354,5761,329,693 --52,560 --1,471,281 --1,523,841 --30,229 237,17015,0612,058,863 --3,041 -409,571409,571 --164,033 237,170424,6322,665,737 $ 303,105$ 429,208$ 5,519,271 CITY OF CENTERVILLE, MINNESOTA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS DECEMBER 31, 2013 Total fund balances - governmental$ 2,665,737 Amounts reported for the governmental activities in the statement of net position are different because Governmental funds do not report an asset for equity interest in the joint venture- Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets22,609,288 Less accumulated depreciation(6,389,074) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of Bond principal payable(9,550,000) Compensated absences payable(36,931) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are unavailable in the funds. Delinquent taxes receivable1,471,281 Special assessments receivable52,560 Governmental funds do not report a liability for accrued interest until due and payable(131,682) Total net position - governmental activities$10,691,179 The notes to the financial statements are an integral part of this statement. CITY OF CENTERVILLE, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2013 101300's402 Debt GeneralServicePark REVENUES Taxes General property$ 1,751,963$ 528,766$ - Gambling6,280-- Licenses and permits122,994-- Intergovernmental203,212-- Charges for services5,889-- Fines and forfeitures34,828-- Special assessments57,821508,367- Interest on investments-5,948237 Miscellaneous12,695-- TOTAL REVENUES2,195,6821,043,081237 EXPENDITURES Current General government440,344-- Public safety1,051,591-- Public works297,47161,468- Culture and recreation79,856-- Economic development2,038-- Capital outlay General government11,248-- Public works--- Culture and recreation18,155-- Debt service Principal-1,229,981- Interest and other-221,59116,625 Bond issuance costs--- TOTAL EXPENDITURES1,900,7031,513,04016,625 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES294,979(469,959)(16,388) OTHER FINANCING SOURCES (USES) Sale of capital assets10,000-- Transfers in-428,296- Bonds issued-7,507- Transfers out(252,203)-- TOTAL OTHER FINANCING SOURCES (USES)(242,203)435,803- NET CHANGE IN FUND BALANCES 52,776(34,156)(16,388) FUND BALANCES, JANUARY 11,205,8201,866,410(1,070,527) FUND BALANCES, DECEMBER 31$ 1,258,596$ 1,832,254$ (1,086,915) The notes to the financial statements are an integral part of this statement. 452 2013OtherTotal StreetGovernmentalGovernmental ProjectFundsFunds $ -$ -$ 2,280,729 --6,280 --122,994 --203,212 --5,889 --34,828 --566,188 -6776,862 -28,87141,566 -29,5483,268,548 --440,344 --1,051,591 --358,939 -15,84495,700 --2,038 --11,248 1,230,0456,4881,236,533 --18,155 --1,229,981 --238,216 10,278-10,278 1,240,32322,3324,693,023 (1,240,323)7,216(1,424,475) --10,000 -212,203640,499 1,477,493-1,485,000 --(252,203) 1,477,493212,2031,883,296 237,170219,419458,821 -205,2132,206,916 $ 237,170$ 424,632$ 2,665,737 CITY OF CENTERVILLE, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2013 Net change in fund balances - governmental funds$ 458,821 Amounts reported for governmental activities in the statement of activities are different because Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlay1,256,701 Depreciation expense(942,484) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are delayed and amortized in the statement of activities. Principal repayments1,229,981 Debt issued or incurred(1,485,000) Interest on long-term debt in the statement of activities differs from the amount reported in the governmental fund because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however interest expense is recognized as the interest accrues, regardless of when it is due.(16,899) Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting, certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Property taxes(9,221) Special assessments(170,439) Some expenses reported in 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(4,627) Change in net position - governmental activities$ 316,833 The notes to the financial statements are an integral part of this statement. CITY OF CENTERVILLE, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2013 Budgeted Amounts ActualVariance with OriginalFinalAmountsFinal Budget REVENUES Taxes General property$ 1,739,600$ 1,739,600$ 1,751,963$ 12,363 Gambling--6,2806,280 Licenses and permits104,500104,500122,99418,494 Intergovernmental155,800155,800203,21247,412 Charges for services3,4003,4005,8892,489 Fines and forfeitures33,50033,50034,8281,328 Special assessments24,00024,00057,82133,821 Interest on investments15,00015,000-(15,000) Miscellaneous7,5007,50012,6955,195 TOTAL REVENUES2,083,3002,083,3002,195,682112,382 EXPENDITURES Current General government482,300482,300440,34441,956 Public safety1,020,9001,020,9001,051,591(30,691) Public works266,700266,700297,471(30,771) Culture and recreation90,50090,50079,85610,644 Economic development--2,038(2,038) Capital outlay54,00054,00029,40324,597 TOTAL EXPENDITURES1,914,4001,914,4001,900,70313,697 EXCESS OF REVENUES OVER EXPENDITURES168,900168,900294,979126,079 OTHER FINANCING SOURCES (USES) Sale of capital assets--10,00010,000 Transfers out(168,900)(168,900)(252,203)(83,303) TOTAL OTHER FINANCING SOURCES (USES)(168,900)(168,900)(242,203)(73,303) NET CHANGE IN FUND BALANCES--52,77652,776 FUND BALANCES, JANUARY 11,205,8201,205,8201,205,820- FUND BALANCES, DECEMBER 31$ 1,205,820$ 1,205,820$ 1,258,596$ 52,776 The notes to the financial statements are an integral part of this statement. CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF NET POSITION - CONTINUED ON THE FOLLOWING PAGES PROPRIETARY FUNDS DECEMBER 31, 2013 AND 2012 Business-type Activities - Enterprise Funds 601602 WaterSewer 2013201220132012 ASSETS CURRENT ASSETS Cash and temporary investments$ 1,210,365$ 1,288,411$ 946,137$ 905,212 Receivables Accounts84,23672,549121,310109,385 Special assessments13,57110,3851,1421 Due from other funds--23,00023,000 Inventories4,7699,960-- Prepaid items38-16,29016,137 TOTAL CURRENT ASSETS1,312,9791,381,3051,107,8791,053,735 NONCURRENT ASSETS Special assessments receivable 437,98762,83955,79154,163 Advances to other funds--1,168,9171,556,520 Capital assets Land72,25572,255124,000124,000 Construction in progress225,983--- Buildings138,000138,000276,000276,000 Infrastructure5,054,9204,966,1423,442,4833,442,483 Machinery and equipment269,367269,36796,74296,742 Less accumulated depreciation(1,977,358)(1,788,769)(1,655,901)(1,538,111) Net capital assets3,783,1673,656,9952,283,3242,401,114 TOTAL NONCURRENT ASSETS4,221,1543,719,8343,508,0324,011,797 TOTAL ASSETS5,534,1335,101,1394,615,9115,065,532 LIABILITIES CURRENT LIABILITIES Accounts and contracts payable8,1734,407-647 Accrued salaries payable4222,8484222,848 Due to other funds---- Due to other governments960-4,75954,371 Compensated absences payable - current5,0385,4585,0385,458 TOTAL CURRENT LIABILITIES14,59312,71310,21963,324 The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds 603 Nonmajor Storm WaterTotals 2013201220132012 $ 130,644$ 130,947$ 2,287,146$ 2,324,570 27,33724,807232,883206,741 --14,71310,386 --23,00023,000 --4,7699,960 --16,32816,137 157,981155,7542,578,8392,590,794 --493,778117,002 --1,168,9171,556,520 4,400-200,655196,255 --225,983- --414,000414,000 --8,497,4038,408,625 968,992968,9921,335,1011,335,101 (187,746)(154,424)(3,821,005)(3,481,304) 785,646814,5686,852,1376,872,677 785,646814,5688,514,8328,546,199 943,627970,32211,093,67111,136,993 1,000809,1735,134 2371,3251,0817,021 23,00023,00023,00023,000 --5,71954,371 3,6192,18613,69513,102 27,85626,59152,668102,628 CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF NET POSITION - CONTINUED PROPRIETARY FUNDS DECEMBER 31, 2013 AND 2012 Business-type Activities - Enterprise Funds 601602 WaterSewer 2013201220132012 NONCURRENT LIABILITIES Advances from other funds$ -$ -$ -$ - Compensated absences payable1,010-1,010- TOTAL NONCURRENT LIABILITIES1,010-1,010- TOTAL LIABILITIES15,60312,71311,22963,324 NET POSITION Net investment in capital assets3,783,1673,656,9952,283,3242,401,114 Restricted for future expansion--71,63171,631 Unrestricted1,735,3631,431,4312,249,7272,529,463 TOTAL NET POSITION$ 5,518,530$ 5,088,426$ 4,604,682$ 5,002,208 The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds 603 Nonmajor Storm WaterTotals 2013201220132012 $ 43,980$ 65,650$ 43,980$ 65,650 --2,020- 43,98065,65046,00065,650 71,83692,24198,668168,278 785,646814,5686,852,1376,872,677 --71,63171,631 86,14563,5134,071,2354,024,407 $ 871,791$ 878,081$10,995,003$10,968,715 CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 Business-type Activities - Enterprise Funds 601602 WaterSewer 2013201220132012 OPERATING REVENUES Charges for services$ 327,449$ 320,631$ 389,134$ 375,103 OPERATING EXPENSES Salaries and benefits84,08188,14485,49589,475 Supplies124,56617,6061,2181,611 Other services and charges73,49740,45179,62031,746 Utilities16,93416,6833,4172,985 MCES - disposal charges--193,648189,237 Depreciation 188,589186,637117,790118,738 TOTAL OPERATING EXPENSES487,667349,521481,188433,792 OPERATING INCOME (LOSS)(160,218)(28,890)(92,054)(58,689) NONOPERATING REVENUES (EXPENSES) Interest earnings6,20915,17228,05318,843 Intergovernmental2,625--- Miscellaneous revenue499427-- Interest expense---- TOTAL NONOPERATING REVENUES (EXPENSES)9,33315,59928,05318,843 - INCOME (LOSS) BEFORE TRANSFERS AND CONTRIBUTIONS(150,885)(13,291)(64,001)(39,846) CAPITAL CONTRIBUTIONS FROM OTHER FUNDS---- CAPITAL CONTRIBUTIONS580,98962,29454,77194,062 TRANSFERS IN---- TRANSFERS OUT--(388,296)- CHANGE IN NET POSITION430,10449,003(397,526)54,216 NET POSITION, JANUARY 15,088,4265,039,4235,002,2084,947,992 NET POSITION, DECEMBER 31$ 5,518,530$ 5,088,426$ 4,604,682$ 5,002,208 The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds 603 Nonmajor Storm WaterTotals 2013201220132012 $ 96,707$ 89,400$ 813,290$ 785,134 39,85034,195209,426211,814 624654126,40819,871 28,70319,461181,82091,658 --20,35119,668 --193,648189,237 33,32233,322339,701338,697 102,49987,6321,071,354870,945 (5,792)1,768(258,064)(85,811) 8321,72335,09435,738 --2,625- --499427 (1,330)(1,650)(1,330)(1,650) (498)7336,88834,515 (6,290)1,841(221,176)(51,296) -271,886-271,886 --635,760156,356 -10,464-10,464 --(388,296)- (6,290)284,19126,288387,410 878,081593,89010,968,71510,581,305 $ 871,791$ 878,081$10,995,003$10,968,715 CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF CASH FLOWS - CONTINUED ON THE FOLLOWING PAGES PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 Business-type Activities - Enterprise Funds 601602 WaterSewer 2013201220132012 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users$ 316,261$ 321,415$ 377,209$ 365,125 Payments to suppliers(205,118)(79,615)(328,315)(174,814) Payments to employees(85,917)(88,515)(87,331)(89,846) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES25,226153,285(38,437)100,465 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Increase (decrease) in advances to other funds--387,603471,256 Interest paid on advance from other funds---- Grant proceeds2,625--- Transfers to other funds--(388,296)- Transfers from other funds---- NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES2,625-(693)471,256 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets(314,761)(25,741)-- Hook up fees and unit charges received179,44928,37032,96874,487 Special assessments received23,20642,47719,03417,882 NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES(112,106)45,10652,00292,369 CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments6,20915,17228,05318,842 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS(78,046)213,56340,925682,932 CASH AND CASH EQUIVALENTS, JANUARY 11,288,4111,074,848905,212222,280 CASH AND CASH EQUIVALENTS, DECEMBER 31$ 1,210,365$ 1,288,411$ 946,137$ 905,212 The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds 603 Nonmajor Storm WaterTotals 2013201220132012 $ 94,177$ 85,484$ 787,647$ 772,024 (28,407)(29,661)(561,840)(284,090) (39,505)(34,655)(212,753)(213,016) 26,26521,16813,054274,918 (21,670)(21,350)365,933449,906 (1,330)(1,650)(1,330)(1,650) --2,625- --(388,296)- -10,464-10,464 (23,000)(12,536)(21,068)458,720 (4,400)-(319,161)(25,741) --212,417102,857 --42,24060,359 (4,400)-(64,504)137,475 8321,72335,09435,737 (303)10,355(37,424)906,850 130,947120,5922,324,5701,417,720 $ 130,644$ 130,947$ 2,287,146$ 2,324,570 CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF CASH FLOWS - CONTINUED PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 Business-type Activities - Enterprise Funds 601602 WaterSewer 2013201220132012 RECONCILIATION OF OPERATING (INCOME) LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss)$ (160,218)$ (28,890)$ (92,054)$ (58,689) Other income related to operations499427-- Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation188,589186,637117,790118,738 (Increase) decrease in assets Accounts receivable(11,687)357(11,925)(9,978) Inventories5,191(6,670)-- Prepaid items(38)1,301(153)472 Increase (decrease) in liabilities Accounts payable3,7661,272(714)337 Accrued salaries payable(2,426)(33)(2,426)(33) Compensated absences payable590(338)590(338) Due to other governments960(778)(49,545)49,956 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES$ 25,226$ 153,285$ (38,437)$ 100,465 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets contributed by other funds$ -$ -$ -$ - The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds 603 Nonmajor Storm waterTotals 2013201220132012 $ (5,792)$ 1,768$ (258,064)$ (85,811) --499427 33,32233,322339,701338,697 (2,530)(3,916)(26,142)(13,537) --5,191(6,670) --(191)1,773 920(9,546)3,972(7,937) (1,088)30(5,940)(36) 1,433(490)2,613(1,166) --(48,585)49,178 $ 26,265$ 21,168$ 13,054$ 274,918 $ -$ 271,886$ -$ 271,886 CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 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 directed by a City Council composed of an elected Mayor and four elected City Council Members.The City Council exercises legislative authority and determines all matters of policy.The City 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 impose its will 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 anycomponent units. B.Government-wide and fundfinancial statements The government-wide financial statements (statement of net positionand 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-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment isoffset by program revenues.Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges providedby a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental fundsandproprietaryfunds.Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C.Measurement focus, basis of accounting and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be availablewhen they are collectible within the current period or soon enough thereafter to pay liabilities 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 service expenditures, as well as expenditures related to compensated absences and claims and judgments, 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 susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlement and donations.On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied.Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied.Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis.On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Unearned revenuearises when assets are recognized before revenue recognition criteria have been satisfied.Grants and entitlements received before eligibility requirements are met are also recorded as unearned revenue. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.Accordingly, actual results could differ from those estimates. The City reports the following major governmental funds: The General fundis the City’s primary operating fund.It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Debt Service fundaccounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. The Park fund captures all park capital items and receives all the City’s park dedication fees. The 2013 Street Projectfund accounts for the activity related to the 2013 street improvement project. The City reports the following major proprietary funds: The Water fund accounts for the activities of the water distribution system the City maintains. The Sewer fundaccounts for the activities of the City’s sewage collection operations. As a general rule the effect of interfund activity has been eliminated from government-wide financial statements. Proprietary funds distinguish operating revenues and expenses from nonoperatingitems.Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations.The principal operating revenues of the City enterprise funds are charges to customers for sales and services.Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets.All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED D.Assets, liabilities, deferred inflows of resources,and net position/fund balance Deposits and investments The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments.Earnings from such investments are allocated on the basis of applicable participation by each of the funds. The City may also invest idle funds as authorized by Minnesota statutes, as follows: 1.Direct obligations or obligations guaranteed by the United States or its agencies. 2.Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. 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 lending agreements with financial institutions qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. 8.Guaranteed Investment Contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Accounts receivable Accounts receivable include amounts billed for services provided before year end. Unbilled utility enterprise fund receivables are also included for services provided in 2013. The City annually certifies delinquent water and sewer accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. Interfund receivables and payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Property taxes TheCityCouncil annually adopts a tax levy in December and certifies it to the County for collection in the following year.The County is responsible for collecting all property taxes for the City.These taxes attach an enforceable lien on taxable property within the City on January 1 and are payable by the property owners in two installments.The taxes are collected by the County Auditor and tax settlements are made to the City during January, July and December each year. Delinquent taxes receivable include the past six years’ uncollected taxes.Delinquent taxes have been offset by a deferred inflow of resources liability fordelinquent taxes not received within 60 days after year end in the fund financial statements. Special assessments Special assessments represent the financing 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 governmentalfund specialassessments receivable are offset by a deferred inflow of resourcesliability in the fund financial statements. Inventories and prepaid items All inventories are valued at cost using the first-in/first-out (FIFO) method.Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 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 are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of three years.Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.Donated capital assets are recorded at estimated fair market value at the date of donation. 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 estimate 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 value excludes 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 original estimate.In the case of donations the City values these capital assets at the estimated 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 value of the assets constructed. Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful lives: Useful Lives Assetsin Years Land improvements4 to 25 Other improvements10 to 20 Buildings and improvements10 to 50 System improvements/infrastructure20 to 50 Machinery and equipment3 to 20 Vehicles3 to 10 Other assets3 to 15 Deferred inflows of resources In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will notbe recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Compensated absences It is the City’s policy to permit employees to accumulate earned but unused paid time off benefits to a maximum of 208hours.All paid time off pay is accrued 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 resignations and retirements.Union employees are allowed severance equal to their 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 liquidate governmental compensated absences. CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Long-term obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. The recognition of bond premiums and discounts are delayed and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported asan expense in the period incurred. In the fund financial statements, governmental fund types recognized bond premiums and discounts, as well as bond issuance costs, during the current period. The faceamount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund balance 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 constraints imposed upon the use of resources reported in the governmental funds. These classificationsare defined as follows: Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items. Restricted -Amounts related to externally imposed constraints established by creditors, grantors orcontributors; or constraints imposed by state statutory provisions. Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council, which is the City’s highest level of decision-making authority. Committed amounts cannot be used for any other purpose unless the City Council modifies or rescinds the commitment by resolution. Assigned - Amounts constrained for specific purposes that are internally imposed. In 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. In the General fund, assigned amounts represent intended uses established by the City Council itself or by an official to which the governing body delegates the authority. TheCityCouncil 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. CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Net Position Net positionrepresents the difference between assets and liabilities.Net position isdisplayed in three components: a.Net investmentin capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b.Restricted net position - Consist of net position balancesrestricted when there are limitations imposed ontheir use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c.Unrestricted net position - All other net position balancesthat do not meet the definition of “restricted” or “net investmentin capital assets”. Comparative data/reclassifications 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 theCityCouncil for review.The CityCouncil holds public hearings anda 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 theCityCouncil.The legal level of budgetary control is the department level.There were no budget amendments made during 2013. B.Deficitfund equity The following funds had a deficit fund balance as of December 31, 2013: Fund Amount Major Parks$1,086,915 The Park fund deficitwill be eliminated with transfersin future years. CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3:DETAILED NOTES ON ALL FUNDS A.Deposits and investments Deposits Custodial credit risk for deposits and investments is the risk that in the eventof a bank failure, the City’s deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party.In accordance with Minnesota statutes and as authorized by theCityCouncil, 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 110percentof the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes: United States government Treasury bills, Treasury notes, Treasury bonds; Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or Standard & Poor’s Corporation; and Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the City. At year end, the City’s carrying amountof deposits was $4,712,151,and the bank balance was $4,727,658. Of the bank balance, $300,888was covered by federal depository insurance and the remaining balance was covered by collateral held by the City’s agent in the City’s name. CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED Investments As of December 31, 2013, 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. Fair Value CreditSegmentedConcentrationand Quality/TimeofCarrying Investment Type Ratings (1)Distribution (2)Credit RiskAmount Pooled investments Broker money marketN/AN/AN/A$9,624 Nonpooled investments Brokered CD'sN/A1 to 3 yearsN/A688,745 Brokered CD'sN/Amore than 3 yearsN/A244,476 Total Brokered CD's933,221 U.S. Government Agency SecuritiesAAAmore than 3 yearsN/A472,435 Total investments$1,415,280 (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/AIndicates 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 53 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 invested more than 5 percent of investments in FHLB(33.4 percent), GE Capital Bank CD (17.3 percent), Comenity Bank CD (14.1 percent), Discover Bank (17.3 percent) and Amex Centurion Bank (17.3 percent) 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 aformal investment policy that addresses the above mentioned risks. A reconciliation of cash and temporary investments as shown on the statement of net positionfor the City follows: Total Carrying amount of deposits$4,712,151 Investments1,415,280 Petty cash200 Total$6,127,631 CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED B.Capital assets Capital asset activity for the governmental activities for the year ended December 31, 2013was as follows: BeginningEnding BalanceIncreasesDecreasesBalance Governmental activities Capital assets not being depreciated Land$3,337,023$-$-$3,337,023 Construction in progress-1,229,234-1,229,234 Total capital assets not being depreciated3,337,0231,229,234-4,566,257 Capital assets being depreciated Buildings1,627,438--1,627,438 Infrastructure15,564,72418,145-15,582,869 Machinery and equipment823,4029,322-832,724 Total capital assets being depreciated18,015,56427,467-18,043,031 Less accumulated depreciation for Buildings(692,456)(37,290)-(729,746) Infrastructure(4,235,147)(860,381)(5,095,528) Machinery and equipment(518,987)(44,813)-(563,800) Total accumulated depreciation(5,446,590)(942,484)-(6,389,074) Total capital assets being depreciated, net12,568,974(915,017)-11,653,957 Governmental activities capital assets, net$15,905,997$314,217$-$16,220,214 CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED Capital asset activity for the business-type activitiesfor the year ended December 31, 2013was as follows: BeginningEnding BalanceIncreasesDecreasesBalance Business-type activities Capital assets not being depreciated Land$196,255$4,400$-$200,655 Construction in progress-225,983-225,983 Total capital assets not being depreciated196,255230,383-426,638 Capital assets being depreciated Buildings414,000--414,000 Infrastructure9,377,61788,778-9,466,395 Machinery and equipment366,108--366,108 Total capital assets being depreciated10,157,72588,778-10,246,503 Less accumulated depreciation for Buildings(40,710)(8,280)-(48,990) Infrastructure(3,201,698)(301,336)-(3,503,034) Machinery and equipment(238,895)(30,085)-(268,980) Total accumulated depreciation(3,481,303)(339,701)-(3,821,004) Total capital assets being depreciated, net6,676,422(250,923)-6,425,499 Business-type activities capital assets, net$6,872,677$(20,540)$-$6,852,137 CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED Depreciation expense was charged to functions/programs of the City as follows: Governmental activities General government$13,168 Public safety2,339 Public works819,065 Culture and recreation107,912 Total depreciation expense - governmental activities$942,484 Business-type activities Water$188,589 Sewer117,790 Storm water33,322 Total depreciation expense - business-type activities$339,701 Construction commitment As of December 31, 2013, the City has signed contracts in place for one construction project. The following summarizes this commitment: SpentRemaining Project to DateCommitment Northdale Construction$ 1,247,187$299,009 C.Interfund balances and transfers The following is a schedule of interfund transfers as of December 31, 2013: Transfer In DebtOther Fund ServiceGovernmentalTotal Transfer out General$40,000$212,203$252,203 Sewer388,296-388,296 Total$428,296$212,203$640,499 A transfer of $168,900from the Generalfund to other governmentalfunds for funding of future street projects and maintenance. A transfer of $388,296 from the Sewer fund to the Debt Service fund was made to eliminatethe interfund loan between the funds. A transfer of $40,000 from the General fund to the Debt Service fund for future debt service payments. A transfer of $43,303 from the General fund to other governmental funds to establish a new capital equipment revolving fund. CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED D.Advances from/to other funds The following is a schedule of interfund advances: Receivable Fund Payable FundAmount Due to/from other funds Sewer Park$1,124,937 Sewer Storm water66,980 Subtotal of interfund balances1,191,917 Interfund activity eliminated from government-wide statements(66,980) Total internal balances - government-wide statements$1,124,937 All of the above interfund advances have associated amortization schedules, of which current payments are being made. E.Long-term debt General obligation bonds The Cityissues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for governmental activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City.General obligation bonds currently outstanding are as follows: General obligation improvement bonds The following bonds were issued to finance various improvements and will be repaid primarily from special assessments collections and tax levies. Interest AuthorizedIssueMaturityBalance at DescriptionRate and IssuedDateDateYear End G.O. Improvement Bonds of 2009A$3,715,0002.65 - 5.60%08/19/0908/01/25$3,450,000 G.O. Crossover Bonds of 2009B2,430,0002.00 - 3.0010/29/0909/01/181,945,000 G.O. Improvement Bonds of 2011A2,760,000.70 - 2.4504/14/1107/01/192,215,000 G.O. Improvement Refunding Bonds of 2012A515,0001.00 - 1.7006/14/1202/01/21455,000 G.O. Improvement Bonds of 2013A1,465,0001.63 - 3.0006/01/1302/01/291,485,000 Total General Obligation Improvement Bonds$9,550,000 CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED Annual debt service requirements for general obligation improvement bonds are as follows: General Obligation Improvement Bonds Governmental Activities Year Ending December 31,PrincipalInterestTotal 2014$855,000$298,871$1,153,871 2015880,000276,0781,156,078 2016895,000255,5331,150,533 2017920,000231,4641,151,464 20181,935,000190,0402,125,040 2019 - 20232,470,000542,2893,012,289 2024 - 20281,445,000115,7211,560,721 2029150,0002,250152,250 Total$9,550,000$1,912,246$11,462,246 Changes in long-term liabilities During the year ended December 31, 2013, the following changes occurredin noncurrent liabilities: BeginningEndingDue Within BalanceIncreasesDecreasesBalanceOne Year Governmental activities G.O Bonds$9,294,981$1,485,000$(1,229,981)$9,550,000$855,000 Compensated absences payable32,30448,071(43,444)36,93132,036 Governmental activities long-term liabilities$9,327,285$1,533,071$(1,273,425)$9,586,931$887,036 Business-type activities Compensated absences payable$13,102$15,964$(13,351)$15,715$12,979 CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED F.Fund equity At December 31, 2013, 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: 2013Other Debt StreetGovernmental GeneralServiceParkProjectFundsTotal Nonspendable Prepaid items$4,607$25,622$-$-$-$30,229 Restricted for Debt service-1,806,632---1,806,632 Capital projects---237,170-237,170 Cable TV----15,06115,061 Committed for Parks and recreation3,041----3,041 Assigned for Street maintenance----350,646350,646 Capital equipment----43,30343,303 Capital projects----15,62215,622 Unassigned1,250,948-(1,086,915)--164,033 Total$1,258,596$ (1,086,915)$237,170$424,632$2,665,737 $ 1,832,254 CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 4:DEFINED BENEFIT PENSION PLANS - STATEWIDE A.Plan description All full-time and certain part-time employees of the City of Centerville are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA).PERA administers the General Employees Retirement Fund (GERF), which is a cost-sharing, multiple-employer retirement plan.The plan is established 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 membersare not.All new members must participate in the Coordinated Plan. PERA provides retirement benefits as well as disability benefits to members, and benefits to 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 years of allowable service, age and years of credit at termination of service. Two methods are used to compute benefits for PERA’s Coordinated and Basic Plan members.The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2).Under Method1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10years of service and 2.7 percent for each remaining year.The annuity accrual rate for a Coordinated Plan member is 1.2percent of average salary for each of the first 10 years and 1.7 percent for eachremaining year.Under Method2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service.GERF members hired prior to July 1, 1989 whose annuity is calculated using Method1, a full annuity is available when age plus years of service equal 90. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced retirement annuityisalso availabletoeligible members seeking early retirement. erent types of annuities availableto members upon retirement. A single-life annuityisa lifetime annuity that There are diff ceases upon the death of the retiree -- no survivor annuityis payable. There are also various types ofjoint and survivor annuityoptions available whichwill be payable over joint lives.Members mayalsoleave their contributions in the fund upon termination of public service inorderto qualify for adeferred annuity at retirement age. Refunds of contributions are availableat any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants.Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial reportthat includes financial statements and requiredsupplementary information for GERF.That report may be obtained on the Internetat www.mnpera.org, by writing to PERAat 60Empire Drive, Suite 200, St. Paul, Minnesota 55103-2088 or by calling (651)296-7460 or (800)652-9026. 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 tocontribute 9.10percent and 6.25percent, respectively, of their annual covered salary in 2013.In 2013, the City of Centerville was required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan GERF members and 7.25percent for Coordinated Plan GERF members.The City’s contributions to the GERF for the year ended December 31, 2013,2012and 2011were$38,179,$38,899, and $45,034, respectively. The City’s contributions were equal to the contractually required contributions for each year as set by Minnesota statute. CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 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 theCity 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 costsof 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 for2012, the most recent data available,were as follows: City of Centerville$122,61113.50% City of Circle Pines156,21617.20 City of Lino Lakes629,40369.30 Total$908,230100.00% 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 statutes69 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 writingto the Centennial Fire District 7741 Lake Drive, Lino Lakes, MN 55014. 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 2012, the most recent data available,were as follows: City of Centerville$661,00831.51% City of Circle Pines842,64440.16 City of Lexington594,43828.33 Total$2,098,090100.00% CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 5:JOINT POWERS AGREEMENTS – CONTINUED 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 1A. The following information is from the financial statements of the District and theDepartment as of December31,2011, the most recentaudited 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. Centennial Lakes Police Centennial Department Fire District $632,201 Total assets$1,704,824 294,796 Total liabilities116,628 337,405 Total net position1,588,196 2,194,530 Total revenue1,069,635 2,219,211 Total expenses896,930 Volunteer firefighters of theDistrict 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 theCentennial Fire District7741 Lake Drive, Lino Lakes, MN 55014. D.North Metro Telecommunications Commission The general purpose of the Commission is to award, administer and enforce a cable communications franchise in member municipalities. The member Cities included the City of Blaine, Centerville, Circle Pines, Ham Lake, Lexington, Lino Lakes, and Spring Lake Park. Each member has a representative on the Commissions Board. CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 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-sustainingthrough 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 theCity.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 $292,948,400which leaves a debt margin of $8,788,452.Currently the City has $455,000 of general obligation debt outstanding, leaving a debt margin of $8,333,452. COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTSAND SCHEDULES CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 CITY OF CENTERVILLE, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2013 Special Capital Project Funds Revenue Fund 614401414409Total RevolvingCapital Nonmajor StreetPedestrianEquipmentGovernmental Cable T.V.FundTrail WaysRevolvingFunds ASSETS Cash and temporary investments$ 4,506$ 355,136$ 15,622$ 43,303$ 418,567 Due from other governments10,641---10,641 TOTAL ASSETS$ 15,147$ 355,136$ 15,622$ 43,303$ 429,208 LIABILITIES Accounts and contracts payable$ -$ 4,490$ -$ -$ 4,490 Accrued salaries payable86---86 TOTAL LIABILITIES864,490--4,576 FUND BALANCES Restricted for Cable TV15,061---15,061 Assigned for Street maintenance-350,646--350,646 Capital equipment---43,30343,303 Trail projects--15,622-15,622 TOTAL FUND BALANCES15,061350,64615,62243,303424,632 TOTAL LIABILITIES AND FUND BALANCES$ 15,147$ 355,136$ 15,622$ 43,303$ 429,208 CITY OF CENTERVILLE, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2013 Special Capital Project Funds Revenue Fund 614401414409Total RevolvingCapital Nonmajor StreetPedestrianEquipmentGovernmental Cable T.V.FundTrail WaysRevolvingFunds REVENUES Interest on investments$ 138$ 384$ 155$ 677 $ - Miscellaneous--18,230-18,230 Refunds and reimbursements10,641---10,641 TOTAL REVENUES10,77938418,385-29,548 EXPENDITURES Current Culture and recreation Personal services12,875---12,875 Supplies2,917---2,917 Other services and charges52---52 Capital outlay Public works-6,488--6,488 TOTAL EXPENDITURES15,8446,488--22,332 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES(5,065)(6,104)18,385-7,216 OTHER FINANCING SOURCES Transfers in-168,900-43,303212,203 NET CHANGE IN FUND BALANCES (5,065)162,79618,38543,303219,419 FUND BALANCES, JANUARY 120,126187,850(2,763)-205,213 FUND BALANCES, DECEMBER 31$ 15,061$ 350,646$ 15,622$ 43,303$ 424,632 CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED ON THE FOLLOWING PAGES FOR THE YEAR ENDED DECEMBER 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) 2013 2012 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts REVENUES Taxes General property$ 1,739,600$ 1,739,600$ 1,751,963$ 12,363$ 1,737,813 Gambling--6,2806,2801,157 Total1,739,6001,739,6001,758,24318,6431,738,970 Licenses and permits Business24,50024,50021,024(3,476)24,010 Nonbusiness80,00080,000101,97021,970105,414 Total104,500104,500122,99418,494129,424 Intergovernmental State Market value agricultural credit--9898298 State grants aid2,3002,3001,333(967)1,333 Police aid35,00035,00034,587(413)31,272 2% fire relief aid102,000102,000148,87246,872109,005 County - other16,50016,50018,3221,82281,042 Total155,800155,800203,21247,412222,950 Charges for services General government1,0001,0001,2352351,985 Culture and recreation2,3002,3004,6312,3315,443 Other10010023(77)68 Total3,4003,4005,8892,4897,496 Fines and forfeitures33,50033,50034,8281,32844,836 Special assessments24,00024,00057,82133,82127,543 Interest on investments15,00015,000-(15,000)11,334 Miscellaneous Refunds and reimbursements7,0007,00012,0535,05374,799 Other50050064214214,936 Total7,5007,50012,6955,19589,735 TOTAL REVENUES2,083,3002,083,3002,195,682112,3822,272,288 CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) 2013 2012 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts EXPENDITURES Current General government Mayor and Council Personal services$ 30,100$ 30,100$ 30,114$ (14)$ 30,097 Other services and charges1,4001,400301,370129 Total31,50031,50030,1441,35630,226 Elections Personal services----4,509 Supplies----619 Other services and charges----938 Total----6,066 Planning and zoning Other services and charges2,5002,5001,3321,1682,231 Administration Personal services262,700262,700232,86029,840267,099 Supplies2,2002,2002,344(144)1,964 Other services and charges68,60068,60046,63021,97043,730 Total333,500333,500281,83451,666312,793 Assessing Other services and charges--15,662(15,662)15,622 Legal and auditing Other services and charges96,00096,00098,484(2,484)96,644 General government building Personal services2,8002,8001,3501,4501,431 Supplies300300370(70)1,004 Other services and charges15,70015,70011,1684,5329,725 Total18,80018,80012,8885,91212,160 Total general government482,300482,300440,34441,956475,742 CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) 2013 2012 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts EXPENDITURES - CONTINUED Current - continued Public safety Police protection Other services and charges$ 678,500$ 678,500$ 676,908$ 1,592$ 662,554 Fire protection Remittance to relief association102,000102,000148,872(46,872)109,005 Other services and charges123,900123,900123,650250122,942 Total225,900225,900272,522(46,622)231,947 Building inspection Personal services99,10099,10086,36012,740102,539 Supplies2,2002,2002,649(449)1,893 Other services and charges12,60012,60011,4941,1069,263 Total113,900113,900100,50313,397113,695 Civil defense Other services and charges1,5001,5001,658(158)1,004 Animal control Other services and charges1,1001,100-1,100- Total public safety1,020,9001,020,9001,051,591(30,691)1,009,200 Public works Streets Personal services130,400130,400132,482(2,082)123,993 Supplies34,70034,70032,0712,62927,875 Other services and charges82,40082,40087,905(5,505)234,393 Total247,500247,500252,458(4,958)386,261 Recycling Personal services8,6008,6008,541594,174 Supplies100100-10039 Other services and charges8,0008,0003,5184,48211,829 Total16,70016,70012,0594,64116,042 CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) 2013 2012 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts EXPENDITURES - CONTINUED Current - continued Public works - continued Engineering services Other services and charges$ 2,500$ 2,500$ 32,954$ (30,454)$ 6,058 Total public works266,700266,700297,471(30,771)408,361 Culture and recreation Parks and recreation Personal services37,10037,10034,5432,55736,585 Supplies5,8005,8001,9243,8766,308 Other services and charges42,10042,10037,4394,66139,791 Total 85,00085,00073,90611,09482,684 City Festival Other services and charges5,5005,5005,950(450)5,569 Total culture and recreation90,50090,50079,85610,64488,253 Economic development Other services and charges--2,038(2,038)2,400 Total current expenditures1,860,4001,860,4001,871,300(10,900)1,983,956 Capital outlay General government24,00024,00011,24812,752- Public works30,00030,000-30,000- Culture and recreation--18,155(18,155)- Economic development----29,000 Total capital outlay54,00054,00029,40324,59729,000 Debt service Principal----6,833 TOTAL EXPENDITURES1,914,4001,914,4001,900,70313,6972,019,789 CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) 2013 2012 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts EXCESS OF REVENUES OVER EXPENDITURES$ 168,900$ 168,900$ 294,979$ 126,079$ 252,499 OTHER FINANCING SOURCES (USES) Sale of capital assets--10,000(10,000)- Transfers out(168,900)(168,900)(252,203)(83,303)(189,000) TOTAL OTHER FINANCING SOURCES (USES)(168,900)(168,900)(242,203)(93,303)(189,000) NET CHANGE IN FUND BALANCES--52,77632,77663,499 FUND BALANCES, JANUARY 11,205,8201,205,8201,205,820-1,142,321 FUND BALANCES, DECEMBER 31$ 1,205,820$ 1,205,820$ 1,258,596$ 32,776$ 1,205,820 CITY OF CENTERVILLE, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2013 309348349 JointG.O.G.O. PoliceImprovementImprovement StationBonds ofBonds of 2012A2006A2007A ASSETS Cash and temporary investments $ 55,044$ 374,315$ 427,360 Receivables Taxes1,147-3,998 Special assessments-37,716441,476 Prepaid items5,521-20,101 TOTAL ASSETS$ 61,712$ 412,031$ 892,935 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - special assessments-37,716441,052 FUND BALANCE Restricted for debt service61,712374,315451,883 TOTAL DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE$ 61,712$ 412,031$ 892,935 351352 G.O.G.O. ImprovementImprovement Bonds ofBonds of 2009A2013ATotal $ 879,666$ 60,711$ 1,797,096 3,523-8,668 706,913255,0441,441,149 --25,622 $ 1,590,102$ 315,755$ 3,272,535 706,469255,0441,440,281 883,63360,7111,832,254 $ 1,590,102$ 315,755$ 3,272,535 CITY OF CENTERVILLE, MINNESOTA DEBT SERVICE FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2013 309348349 JointG.O.G.O. PoliceImprovementImprovement StationBonds ofBonds of 2012A2006A2007A REVENUES Property taxes$ 69,969$ -$ 243,892 Special assessments-218,869103,465 Interest on investments8259191,551 TOTAL REVENUES70,794219,788348,908 EXPENDITURES Current Public works-61,468- Debt service Principal569,981175,000350,000 Interest and other6,87762,73343,078 TOTAL EXPENDITURES576,858299,201393,078 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES(506,064)(79,413)(44,170) OTHER FINANCING SOURCES Transfers in-428,296- Bonds issued--- TOTAL OTHER FINANCING SOURCES -428,296- NET CHANGE IN FUND BALANCES (506,064)348,883(44,170) FUND BALANCES, JANUARY 1567,77625,432496,053 FUND BALANCES, DECEMBER 31$ 61,712$ 374,315$ 451,883 351352 G.O.G.O. ImprovementImprovement Bonds ofBonds of 2009A2013ATotal $ 214,905$ -$ 528,766 133,80552,228508,367 1,6779765,948 350,38753,2041,043,081 --61,468 135,000-1,229,981 108,903-221,591 243,903-1,513,040 106,48453,204(469,959) --428,296 -7,5077,507 -7,507435,803 106,48460,711(34,156) 777,149-1,866,410 $ 883,633$ 60,711$ 1,832,254 CITY OF CENTERVILLE, MINNESOTA SUMMARY FINANCIAL REPORT REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTAL FUNDS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 Percent TotalIncrease (Decrease) 20132012 REVENUES Taxes$ 2,287,009$ 2,267,2270.87% Licenses and permits122,994129,424(4.97) Intergovernmental203,212281,151(27.72) Charges for services5,8897,496(21.44) Fines and forfeitures34,82844,836(22.32) Special assessments566,188357,86958.21 Interest on investments6,86230,478(77.49) Miscellaneous41,566110,394(62.35) TOTAL REVENUES$ 3,268,548$ 3,228,8751.23% Per Capita$ 851$ 8490.25% EXPENDITURES Current General government$ 440,344$ 475,742(7.44)% Public safety1,051,5911,009,2004.20 Public works358,939410,563(12.57) Culture and recreation95,700101,206(5.44) Economic development2,0382,400(15.08) Capital outlay General government11,248-100.00 Public works1,236,53385,0191,354.42 Culture and recreation18,15513,37335.76 Economic development-29,000(100.00) Debt service Principal1,229,981552,437122.65 Interest and other238,216319,715(25.49) Bond issuance costs10,278-100.00 TOTAL EXPENDITURES$ 4,693,023$ 2,998,65556.50% Per Capita$ 1,222$ 78855.00% Total Long-term Indebtedness$ 9,550,000$ 9,294,9812.74% Per Capita2,4862,4431.75 General Fund Balance - December 31$ 1,258,596$ 1,205,8204.38% Per Capita3283173.37 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 may be examined at City Hall, 1880 Main Street, Centerville, MN 55038. Questions about this report should be directed to City Hall at (651) 429-3232. OTHER REQUIRED REPORT CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 INDEPENDENT AUDITOR’S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor andCityCouncil City of Centerville, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of thegovernmental activities, the business-type activities, each major fund and the aggregate remaining fund information of theCity of Centerville, Minnesota (the City), as of and for the year endedDecember 31, 2013,and the related notes to the financial statements, and have issued our report thereon dated March 29, 2014. Minnesota Legal Compliance Audit Guide for Political Subdivisions The , promulgated by the State Auditor pursuant to Minnesota Statute§6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing.Our study included all of the listed categories except that we did not test for compliance in tax increment financing because the City has not established a tax increment financing district. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with theprovisions Minnesota Legal Compliance Audit Guide for Political Subdivisions of the . However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City’s noncompliance with the above referenced provisions. This report is intended solely for the information and use those charged with governance and management of the City and the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. ABDO, EICK& MEYERS, LLP Minneapolis, Minnesota March 29, 2014 Notice of Hearing on Proposed Assessment TO WHOM IT MAY CONCERN: Notice is hereby given that the council will meet at 6:30 p.m. on April 9, 2014 at City Hall, 1880 Main Street, Centerville, MN, to consider amending the assessment for the improvement of 21" Avenue from a point approximately 600 feet south of Main Street to a point approximately 1,400 feet south of Main Street and continuing on a new unnamed street (now Commerce Drive) parallel to Main Street westerly to 20 Avenue by installation of watermain, sanitary sewer street pavement, curb, storm sewer and related drainage improvements. Adoption by the council of the amended assessment may occur at the hearing. The area proposed to be assessed is the abutting property. Repayment of the amended special assessment is proposed to be in accordance with the terms of Resolution Number 09 -015 adopted on June 10, 2009. The City intends to determine the application of interest due on the special assessment, and this amount is accumulating daily. The proposed assessment roll is on file for public inspection at the City Clerk's office. The total amount of the proposed assessment is $1,609,930. Written or oral objections will be considered at the meeting. No appeal to district court may be taken as to the amount of an assessment unless a written objection signed by the affected property owner is filed with the municipal clerk prior to the assessment hearing or presented to the presiding officer at the hearing. The council may upon such notice consider any objection to the amount of a proposed individual assessment at an adjourned meeting upon such further notice to the affected property owners as it deems advisable. An owner may appeal an assessment to district court pursuant to Minn. Stat. § 429.081 by serving notice of the appeal upon the mayor or clerk of the city within 30 days after the adoption of the assessment and filing such notice with the district court within ten days after service upon the Mayor or Clerk. Published in the Quad Community Press on March 25, 2014 Teresa Bender, CMC City Clerk 110 ASSESSMENT ROLL Property ID Owner Name Assessment 24.31.22.23.0014 City of Centerville $1,337,930 24.31.22.23.0015 Sheehy Const. Co $ 249,000 111 CITY OF CENTERVILLE CITY COUNCIL MEETING March 26, 2014 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held their regularly scheduled meeting of March 26, 2014 at City Hall, 1880 Main Street. PRESENT: Mayor Tom Wilharber Council Member Steve King Council Member Jeff Paar T-, 'r eT. N 3 ABSENT: Council Member D. Love Council Member Ben Fehrenbacher STAFF: City Administrator Dallas Larson City Engineer Mark Statz Legal Counsel Kurt Glaser I. CALL TO ORDER Mayor Wilharber called the meeting to order at 6: 37 p.m. II. PLEDGE OF ALLEGIANCE Subsequent to the pledge, Mayor Wilharber noted that the input meeting was noticed for 7:00 p.m. and suggested that the remainder of the agenda be addressed prior to 7:00 p.m. III. PUBLIC INPUT(S) (Commenced at 7:00 p.m.) 1. Proposed Improvements — 2014 Watermain Project — (Royal Meadows Development) Administrator Larson stated the improvement that is being considered this evening is within the Royal Meadows development along 20 Avenue North and encompasses Cardinal Drive, North, South, and West Robin Lanes. Administrator Larson stated that the City was successful in obtaining a Community Development Block Grant through Anoka County to assist residents that meet income guidelines the ability to connect to municipal water services for little or no cost. Administrator Larson reviewed that within the development, several types of letters were forwarded to residents: those that met the income qualifications received a letter stating that they qualified for connection at no cost, those that did not meet the income qualifications received a letter stating that they did not qualify for connection at no cost along with a price breakout showing connection costs and and a third letter to those that had not submitted a completed survey. Administrator Larson stated that any resident in this subdivision that does not meet the income guidelines desires to connect, the cost would normally be approximately $11,922. However, because of the location in the City's "Wellhead Protection Area," if they chose to connect in 2014 along with the project, they would receive a fee waiver incentive of $2,050 112 City of Centerville Council Meeting Minutes March 26, 2014 bringing the total cost to approximately $9,942. Administrator Larson stated that at this time a resident did not have to connect, however, current City Code states that mandatory connection to municipal services if available would be by December 31, 2021. Administrator Larson stated that if residents that did not qualify for grant funding desired to connect, they could enter into an agreement with the City allowing the City to specially assess their property for the connection over a period of approximately 15 years at 5% interest leaving an annual payment of approximately $960 per year. Engineer Statz stated that the Royal Meadows Development was constructed in the early 80's without municipal water, houses are close together, area streets are in satisfactory condition, directional boring would provide the best installation of water main to the vicinity with the least amount of traffic disturbance, tree removal, yard or driveway restoration. Engineer Statz also stated that all properties will receive a water stub to the property whether or not they desire to connect at this time, explained property line boundaries, drainage utility easements /right -of- ways, grouping of service lines, hydrant location, the need for a 6" water main due to looping and benefits homeowners would receive from strong water pressure for their homes and fighting fires. Engineer Statz reiterated that this evenings meeting is an input meeting and not a public hearing regarding special assessments as individuals are not required to connect at this time and therefor would not incur a special assessment unless they choose to do so. Both Engineer Statz and Administrator Larson stated that residents that connected with this project would be required to seal their wells and that the cost is included in the estimate of assessments forwarded to residents. Engineer Statz reviewed with residents that the development is within the City's well- head protection area/plan which provides that unused/ abandoned, due to other available sources (municipal services) wells be sealed due to potential for contamination and close proximity the City's water supply well. Mayor Wilharber questioned whether if one of the residents that had not returned a survey still had an opportunity to do so. Administrator Larson stated yes, however a deadline for acceptance would be within the next few weeks. Mayor Wilharber opened the meeting for public input on the project. Ms. Melinda Hughes, 7187 West Robin Lane, questioned whether the City would attempt to protect existing trees and landscaping, location of fire hydrants, whether driveways would be involved, the projects commencement and notification of same. Engineer Statz stated that the contractors would do their best to disturb as little as possible such as existing trees and landscaping, reviewed the location of the proposed fire hydrants and stated that due to directional drilling there would be minimal, if no disruption of the items that she questioned. Engineer Statz stated that Lead Project Coordinator, Greg Burmeister would be on site throughout the project and he would attempt to minimize disruption. Administrator Larson stated that it is customary to hold neighborhood meetings with residents to obtain input/concerns and inform them of upcoming stages of the project. Page 2 of 7 113 City of Centerville Council Meeting Minutes March 26, 2014 Ms. Jennifer Hicks, 1989 North Robin Lane, questioned whether the survey should request net income rather than gross income, average cost for water services on a bi- monthly basis, the location of the connection to her home, inability to pay once the assessment once connected and existing wet conditions in the spring in the rear yard and basements within the neighborhood. Ms. Hicks also questioned the ramifications of not connecting by the deadline date. Administrator Larson addressed the question of the survey by stating that the survey was provided to the City by Anoka County and the City can not deviate from its usage, however, he would contact the County to determine whether special family circumstances can be considered in calculating gross income. Administrator Larson stated that water charges are based upon consumption so it is very individualized for each household but she is currently paying a small water management fee just for the services being available throughout the City and that the metered fee is $2 per 1,000 gallons. Legal Counsel Glaser stated that if she desired to connect, she would sign an agreement waiving all rights to appeal the assessment; it would appear on her property taxes and become a lien on the property. Legal Counsel Glaser stated that if the home were foreclosed upon or she desired to sell, the assessment would be usually be paid for by the current owner at closing, but that assessments can be assumed by a buyer. Engineer Statz stated that the resident can purchase flood insurance to assist with flooding issues, that they City has areas within the City that have been given priority to receiving improvements related to drainage and thanked Ms. Hicks for enlightening Council on this drainage issue. Administrator Larson stated that the City does have a program that with cost sharing (resident/City) funding is available for drainage issues within developments. Administrator Larson stated that he would be in contact with Ms. Hicks in the near future to address her issues related to income. Mr. Stanley Angerhofer, 1989 Cardinal Drive, stated that he would be retiring in April of this year which would would lower his income to where he may qualify for grant funding but at this time he does not. Administrator Larson stated that he would speak with Anoka County regarding the closeness of Mr. Angerhofer's retirement, potential for resubmission of his survey and get back to him. Mr. Angerhofer questioned at what point the City would need to obtain a resident's desire to connect and interest rate that would be charged on the assessment. Administrator Larson stated by the end of May and 5 %. Attorney Glaser stated that if Mr. Angerhofer was 65 years old he could qualify for assessment deferment, however, interest would accrue during the deferred period. Mr. Angerhofer stated that he would be turning 65 on July 5, 2014. Attorney Glaser stated that Mr. Angerhofer would have ninety days from the date of the resolution adopting the assessments to apply for the deferment. Mr. Jeffery Maher, 1984 North Robin Lane, questioned the installation of the water line and amount of disturbance of his property and in his home. Mr. Maher also questioned the process' for signing forms if connection was desired. Engineer Statz explained that the water main would be installed through directional drilling/tunneling with each property receiving a water stub whether they desired to connect at this time. Engineer Statz also explained that a 2' x 2' area in the home's basement/crawl space would be cut allowing the water line being brought into home for connection to the existing Page 3 of 7 114 City of Centerville Council Meeting Minutes March 26, 2014 piping. Administrator Larson stated that the City would be forwarding documents for voluntary connection within the next month. Ms. Marguerite McGown, 1988 Cardinal Drive, stated that the electrical for her home runs underneath her garage and could pose a concern during connection. Ms. McGown also stated that she would prefer if directional drilling is performed near her existing trees that they be removed due to believed disruption of the root system. Ms. McGown also stated that she runs two to three dehumidifiers all year round. Engineer Statz stated that if the existing trees would be disrupted and Ms. McGown desired for them to be removed, they would be. Engineer Statz addressed the electrical concerns of Ms. McGown by stating that they would not be disturbed and locates would be completed prior to each phase of the project. Engineer Statz again reiterated that the City has a program for drainage issues and a program where cost sharing (resident/City) funding is available for drainage issues within developments. Ms. Hughes questioned the benefit of a city water connection. Engineer Statz stated that it is a personal decision, most cities have a water system that serves the entire City and is shared by the entire community which is the goal of the City Council, looping, fire services, water pressures, incentive for connection at this time and a safe drinking water source versus one with greater potential for contamination. Mr. Angerhoffer stated that his well is within a closet with his pressure tank and wondered if that would be removed. Engineer Statz stated that generally the well is in the ground outside the home and that he may have a pressure tank inside. Engineer Statz also stated that with this installation everything would be turn-key, meaning all of the work and costs are included. Mayor Wilharber called for additional questions from the audience, hearing none closed the input meeting at 7:48 p.m. IV. APPROVAL OF AGENDA Mayor Wilharber added Centerville Claims (Check #28589- 28599). Motion by Council Member King, seconded by Council Member Paar to approve the Set Agenda with the above stated amendment All in favor. Motion passed V. APPROVAL OF MINUTES 1. March 12, 2014 City Council Meeting Minutes The Mayor provided Council Members with an opportunity to amend the presented minutes. Page 4 of 7 115 City of Centerville Council Meeting Minutes March 26, 2014 Motion by Council Member King, seconded by Council Member Paar to approve the minutes of the March 12, 2014 City Council Meeting as presented. All in favor. Motion passed. VI. CONSENT AGENDA City of Centerville March 13, 2014 through March 26, 2014 Claims (Check #28573- 28535) 2. Centennial Police Department Claims through March 13, 2014 (Check #9822 -9838) 3. Centennial Fire District Claims through March 11, 2014 (Check #6287 -6304) 4. Successful Performance Review — Public Works Technician/Building Inspector, Dan Schmitz Mayor Wilharber reported that a resident approached him as stated that Dan had recently been to their home and was very pleasant and knowledgeable. Motion by Council Member King, seconded by Council Member Paar to approve the Consent Agenda as presented. All in favor. Motion passed. VII. AWARDS /PRESENTATIONS /APPEARANCES 1. None. VIII. OLD BUSINESS 1. None. IX. NEW BUSINESS (Delayed to the completion of the input meeting) 1. Res. #14 -018 — Awarding Bids — Royal Meadows Improvement Project (Watermain) (Materials & Labor) Engineer Statz stated that the City received separate bids for labor and materials to take advantage of the sales tax exemption similar to the 2014 Street Improvement Project. Engineer Statz briefly reviewed the submitted bids stating that Ferguson Water Works (Materials) and C & I Excavating, Inc. (Labor) were low bidders. Motion by Council Member Paar, seconded by Council Member King to approve Res. #14- 018 — Awarding Bids — Royal Meadows Improvement Proiect (Watermain — Materials & Labor as presented. All in favor. Motion passed. 2. Anoka County Fire Protection Council Joint Powers Agreement Legal Counsel Glaser explained the agreement, its intent, the similarities between the Joint Law Enforcement Council Agreement with Anoka County and the ease of amending that agreement to include Fire Protection; Emergency Services, the agreements necessity of a newly formed Page 5 of 7 116 City of Centerville Council Meeting Minutes March 26, 2014 entity that would require management, municipal funding and staff time, potential for loss of municipal control and governance, the lack of expiration date of the agreement not allowing for restructuring per changing needs and insurance coverage requirements. Consensus of Council was that it was not a time sensitive agreement and could be tabled until more information is available. Motion by Council Member Paar seconded by Council Member Kine to table this item All in favor. Motion passed. X. ANNOUNCEMENTS/UPDATES 1. Administrator Larson reminded Council of their Joint Work Session with the Parks & Recreation Committee and the Planning & Zoning Commission to be held on April 9, 2014 at 7:00 p.m. 2. Administrator Larson stated that the Parks & Recreation Committee has requested additional information regarding the property for sale and owned by the City at 7212 Mill Road. Committee believes that this property has been dedicated for park purposes in some fashion, has been known as park property in the past and if sold the proceeds should benefit park purposes. Administrator Larson stated that to this point, all research does not support this claim and he would be forwarding a memorandum to the Committee and Council shortly. 3. Administrator Larson stated that the Annual Local Public Officials Meeting is scheduled for April 30, 2014 at the Harvest Grill in Coon Rapids and if any Council Members desired to attend to notify Staff. 4. Mayor Wilharber stated that the packet contained a letter from the City's Assessor notifying the City that Anoka County believes that some valuations do not meet their Revenue Departments standards and should be increased from his figures of 7.4% to 12.8% for 2015. 5. Administrator Larson stated that Council did not act as the Local Board of Appeal & Equalization last year due to a lapse in certification. However, several members have been trained and Council will need to take action on a resolution to all the Council to again assume those duties and responsibilities. Dallas stated that the County will be holding the Open Book method at their facilities again this year, but that Mr. Tolzmann will attend an upcoming Council meeting to provide a report. 6. Council Member King stated that the FCC found in favor of local cable commissions regarding charges that Comcast was billing their subscribers for DTA equipment calling it a service fee. The FCC has ordered Comcast to unbundle all equipment costs in the DTA service fee, the HD Technology Fee and the HD/DVR service fees. Council Member King stated that the FCC did not find in favor of local cable commissions regarding aggregation method used to set the rates for SD and HD converter equipment and declined to take jurisdiction of the $5.99 "convenience fee ". 7. Mayor Wilharber stated that recently the Parks & Recreation Committee purchased park benches from Minncor for several parks. They will be installed by city forces this spring. 8. Council Member Paar reminded residents and businesses of the Fete des Lacs celebration that would be taking place on July 25, 26 & 27, 2014, registration for the Page 6 of 7 117 City of Centerville Council Meeting Minutes March 26, 2014 parade is on the City's website and that there will be no Lions Street Dance. Council Member Paar stated that on July 25, 2014 there will be the organized JAM prior to the fireworks at dusk. Council Member Paar also stated that subsequent to the City of Lino Lake's withdraw from the Centennial Fire District, Chief Streich has informed the Fire Steering Committee that he is a finalist for another Fire Chief position in another community. Council member Paar stated that the Fire Steering Committee cancelled their next meeting and rescheduled for April 24, 2014. 9. Attorney Glaser reported that some progress has been made with the residents of 7121 Centerville regarding ongoing cleanup and building violations. Attorney Glaser stated that the legislature remains in session and no further information regarding the Ticket Education Programs has been brought forward. 10. Engineer Statz reported that no new information has been brought forward in the legislature regarding clarification for the municipal sales tax exemption(s). Engineer Statz stated that the County is currently acquiring right of way easements from residents that abut Centerville Road, desired for Council to consider installation of municipal sewer and water along with the CSAH21 /Centerville Road project so that the County could be informed of the Councils wishes. Administrator Larson stated that the City could invite those residents that expressed a desire for connection to a meeting to discuss the item in the near future. Consensus was thjat staff should meet with affected property owners first, to gage their interest in city services. 11. Mayor Wilharber reported that Anoka County recently held a meeting regarding the Chain of Lakes Bald Eagle Regional Trail Plan here in Council Chambers and that he and several members of the Parks & Recreation Committee attended. Mayor Wilharber reported that the Parks & Recreation Committee would like to see the trailway be located in an alternative location and throughout the proposed park being constructed by the City of Lino Lakes at the corner of Centerville Road and Birch Street. Mayor Wilharber stated that the proposed Chain of Lakes Bald Eagle Regional Trail is not expected to be completely constructed for 10 years. Administrator Larson stated that the County would be applying for grant funding which potentially would reimburse the City for 50% of the cost of the trail along Centerville Road. 12. Council Member Paar requested an update on the colored concrete study that has been taking place within the downtown area. Engineer Statz stated that the study is coming to a conclusion of uncertainties and they are unable to point to one thing that has caused the deterioration. Engineer Statz stated that a section of the study was to suggest repair options but it appears that a full depth removal would be needed. XI. ADJOURNMENT Motion by Council Member Paar, seconded by Council Member King to Adiourn the regularly scheduled Council meeting of March 26, 2014 at 8:05 p.m. All in favor. Motion passed. Transcribed by City Staff Member Teresa Bender, City Clerk Page 7 of 7 118 CITY OF CENTERVILLE 04/04/14 9.41 AM Check Detail - 04 -09 -2014 Page 1 Check Date Check # Vender Name Comments Amount 4/9/2014 028600 CONNEXUS ENERGY 2085 W CEDAR ST - SERV THRU 3 -17 -14 $314.48 4/9/2014 028600 CONNEXUS ENERGY STREET LIGHTS - 395653 - 219678 - SERV THRU 3 -20 -14 $74.71 4/9/2014 028600 CONNEXUS ENERGY STREET LIGHTS - 395653 - 219699 - SERV THRU 3 -20 -14 $106.71 4/9/2014 028600 CONNEXUS ENERGY 7087 20TH AVE N- SERV THRU 3 -17 -14 $156.64 4/9/2014 028600 CONNEXUS ENERGY 6900 20TH AVE - LIFT STAT - SERV THRU 3 -17 -14 $61.65 4/9/2014 028600 CONNEXUS ENERGY 7100 20TH AVE N - TRAFSG - SERV THRU 3 -24 -14 $74.25 4/9/2014 028600 CONNEXUS ENERGY 6800 - 20 RADIO SCADA - SERV THRU 3 -21 -14 $16.24 4/9/2014 028600 CONNEXUS ENERGY 6800 - 20 RADIO SCADA - SERV THRU 3 -21 -14 16.25 Check Nbr 028600 CONNEXUS ENERGY 820.93 4/9/2014 028601 ALL COVERED INC. TREND MICRO WORY FREEE - SECURITY $88.02 4/9/2014 028601 ALL COVERED INC. TREND MICRO WORY FREEE - SECURITY $88 02 4/9/2014 028601 ALL COVERED INC. TREND MICRO WORY FREEE - SECURITY $88.01 4/9/2014 028601 ALL COVERED INC. TREND MICRO WORY FREEE - SECURITY 88.02 Check Nbr 028601 ALL COVERED INC 4/9/2014 028602 AMUNDSEN, KEVIN P & R MEETINGS - 1 -8 -14, 2 -5 -14 & 3 -5 -14 $352.07 Check Nbr 028602 AMUNDSEN KEVIN 4/9/2014 028603 ANOKA COUNTY PROPERTY RECORDS 1880 MAIN ST -23 3122 13 0015- 2014 PROPERTY TAXES 0.00 4/9/2014 028603 ANOKA COUNTY PROPERTY RECORDS 24 3122 33 0002 - 2014 PROPERTY TAXES $69.14 $ 4/9/2014 028603 ANOKA COUNTY PROPERTY RECORDS 22 -31 -22-41 -0047 - 1601 LAMOTTE DR - 2014 PROPERTY 33.06 Check Nbr 028603 ANOKA COUNTY PROPERTY RECORDS X171 34 4/9/2014 028604 BRANCH, PATRICK P & R MEETING - 1 -8 -14 Check Nbr 028604 BRANCH PATRICK 4/9/2014 028605 BURNET TITLE 1832 PRAIRIE DR - REFUND - OVERPYMT FINAL BILL 20.00 Check Nbr 028605 BURNET TITLE 64.13 4/9/2014 028607 CENTER POINT ENERGY 1880 MAIN ST - SERV THRU 3 -26 -14 $968.66 4/9/2014 028607 CENTER POINT ENERGY 2085 W CEDAR ST - SERV THRU 3 -26 -14 $1,138.12 4/9/2014 028607 CENTER POINT ENERGY 1785 PELTIER LAKE DR - SER THRU 3 -26 -14 $15 4/9/2014 028607 CENTER POINT ENERGY 7087 - 20TH AVE S - SERV THRU 3 -26 -14 $1( 4/9/2014 028607 CENTER POINT ENERGY 1737 MAIN ST - SERV THRU 1 -27 -14 $10.x,_ 4/9/2014 028607 CENTER POINT ENERGY 6970 LAMOTTE DR - SERV THRU 3 -26 -14 $170.15 Check Nbr 028607 CENTER POINT ENERGY 4/9/2014 028608 CHRIS BETTINGER P & R MEETINGS - 1 -8 -14, 2 -5 -14 & 3 -5 -14 2 314.08 Check Nbr 028608 CHRIS BETTINGER 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA D.SCHMITZ - TRAINING CERTIFICATE COLLECTION SYSTEM 6 .0 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA TRAVEL EXPENSES - D. SCHMITZ - ST. CLOUD SEMINAR $355.0 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA POSTAGE - WATER SAMPLES $1 $3.04 3.06 6 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA COMPUTERS - P.W. $ $2,127.51 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA COMPUTER - P.W 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA COMPUTER - ACCOUNT CLERK $915.20 $1,186.46 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA BSN SPORTS SUPPLY - TENNIS COURT - SUPPLIES 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA SUPPLIES $ $38.82 .93 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA REPAIRS TO BOBCAT $38 $1,542.59 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA SUPPLIES $325.57 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA HYBRID TV TUNER/W VIDEO $$ 6 5 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA FUEL $65.98 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA BACK UP DRIVES $286.21 $179.98 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA ENDICA POSTAGE 4/9/2014 028609 CITY OF CENTERVILLE - MASTERCA FUEL $9.95 - heck Nbr 028609 CITY OF CENTERVILLE - MASTERCA 533.06 4/9/2014 028610 CITY OF CIRCLE PINES 2014 POLICE BLDG PYMT $7,963.36 $496.46 4/9/2014 028610 CITY OF CIRCLE PINES 2014 POLICE BLDG PYMT 5 000.00 :heck Nbr 028610 CITY OF CIRCLE PINES 4/9/2014 028611 FLINT, JAMES 5 496.46 P & Z MEETING - 1 -7 -14 ;heck Nbr 028611 FLINT JAMES 4/9/2014 028612 GOPHER STATE ONE CALL INC SERVICE THRU MARCH 2014 20.00 4/9/2014 028612 GOPHER STATE ONE CALL INC SERVICE THRU MARCH 2014 $10.92 :heck Nbr 028612 GOPHER STATE ONE CALL INC 11Q.93 4/9/2014 028613 GRAHEK, JOHN 21 P& R MEETINGS - 1 -8 -14, 2 -5 -14 & 3 -5 -14 ;heck Nbr 028613 GRAHEK JOHN 60.00 119 CITY OF CENTERVILLE 04/04/14 9:41 AM Page 2 Check Detail — 04 -09 -2014 Check Date Check # Vender Name Comments Amount 4/9/2014 028614 INTEGRA PHONE SERV 4 -22 -14 Check Nbr 028614 INTEGRA $34.57 4/9/2014 028615 KOSKI, RUSSELL P & Z MEETING - 1 -7 -14 Check Nbr 028615 KOSKI, RUSSELL $20.00 4/9/2014 028616 MN DEPT OF LABOR & INDUSTRY SURCHARGE - BUILDING PERMITS $56.25 4/9/2014 028616 MN DEPT OF LABOR & INDUSTRY SURCHARGE - MECHANICAL PERMITS $43.75 4/9/2014 028616 MN DEPT OF LABOR & INDUSTRY SURCHARGE - ELECTRICAL PERMITS $53.75 4/9/2014 028616 MN DEPT OF LABOR & INDUSTRY SURCHARGE - PLUMBING PERMITS $13.75 (hark Nbr 028616 MN DEPT OF LABOR & INDUSTRY $167.50 4/9/2014 028617 MONTAIN, MATTHEW P & Z MEETING - 1 -7 -14 Check Nbr 028617 MONTAIN, MATTHEW $20.00 4/9/2014 028618 MOSHER, DARRIN P & Z MEETING - 1 -7 -14 Check Nbr 028618 MOSHER, DARRIN $20.00 4/9/2014 028619 PETERSON, BRIAN P & R MEETINGS - 1 -8 -14, 2 -5 -14 & 3 -5 -14 Check Nbr 028619 PETERSON, BRIAN $60.00 4/9/2014 028620 PRESS PUBLICATIONS HEARING - PROPOSED ASSESSMENTS Check Nbr 028620 PRESS PUBLICATIONS $66.16 4/9/2014 028621 SEELEY, SUZANNE P & R MEETINGS - 1 -8 -14, 2 -5 -14 & 3 -5 -14 Check Nbr 028621 SEELEY, SUZANNE $60.00 4/9/2014 028622 TWOHY, NICK P & R MEETINGS - 1 -8 -14, 2 -5 -14 & 3 -5-14 Check Nbr 028622 TWOHY, NICK $60.00 4/9/2014 028623 WAEGHE, KEVIN P & R MEETINGS - 1 -8 -14, 2 -5 -14 & 3 -5 -14 Check Nbr 028623 WAEGHE, KEVIN $60.00 4/9/2014 028624 WOOD, TOM P & Z MEETING - 1 -7 -14 Check Nbr 028624 WOOD, TOM $20.00 4/9/2014 028625 CENTENNIAL LAKES POLICE DEPT 2013 CREDIT - OVER PAYMENT - $10,894.02 4/9/2014 028625 CENTENNIAL LAKES POLICE DEPT POLICE SERVICES - APRIL 2014 $57,321.25 C jbr 028625 CENTENNIAL LAKES POLICE DEPT $46.427.23 TOTAL CHECKS $64,439.68 VOIDED CHECK #28606 120 CENTENNIAL LAKES POLICE DEPT Check Register- Police GL without invoice numbers Page: 1 Check Issue Dates: 3/14/2014 - 3/27/2014 Mar 27, 2014 11:30AM Report Criteria: Report type: Summary GL Check Ck No Description Check Period Issue Date Payee Amount 03/14 03/27/2014 9839 AVENET, LLC WEBSITE HOSTING /DESIGN 450.00 03/14 03/27/2014 9840 BCA CJTE TRAINING BJ 570.00 03/14 03/27/2014 9841 CENTENNIAL UTILITIES FEB UTILITIES 1,140.61 03/14 03/27/2014 9842 CONNEXUS ENERGY FEB ELECTRIC 3,489.09 03/14 03/27/2014 9843 DELL MARKETING L.P. 3 COMPUTERS 3,358.39 03/14 03/27/2014 9844 DEPUTY REGISTRAR #150 VEH RENEWAL 12.00 03/14 03/27/2014 9845 DON'S CIRCLE SERVICE, INC VEH REPAIRS & MTC 2,084.50 03/14 03/27/2014 9846 ENVENTIS TELECOM, INC PHONES & LONG DISTANCE 402.51 03/14 03/27/2014 9847 MINNEAPOLIS FINANCE DEPT ANNUAL APS ACCESS FEE 204.00 03/14 03/27/2014 9848 NAC MECHANICAL & ELEC SERVICES BLDG HEATER REPAIR 1,019.34 03/14 03/27/2014 9849 PITNEY BOWES INC POSTAGE METER RENTAL 73.77 03/14 03/27/2014 9850 QUILL CORPORATION TONER/MISC OFFICE SUPPLIES 375.66 03/14 03/27/2014 9851 PAUL H STEFFEL INS AGENT OF RECORD 1,500.00 03/14 03/27/2014 9852 SUN LIFE FINANCIAL APRIL LIFE /DISABILITY 95.86 Grand Totals: 14,775.73 M = Manual Check, V = Void Check 121 CENTENNIAL LAKES POLICE DEPT Check Register - Police GL without invoice numbers Page: 1 Check Issue Dates: 3/28/2014 - 3/28/2014 Mar 28, 2014 03:13PM Report Criteria: Report type: Summary GL Check Ck No Description Check Period Issue Date Payee Amount 03/14 03/28/2014 9772 PUBLIC AGENCY TRAINING COUNCIL TRAINING AK 1,180.00- V 03/14 03/28/2014 9853 CITY OF CENTERVILLE DUI FORFEITURE DISTRIBUTION 27.09 03/14 03/28/2014 9854 DON'S CIRCLE SERVICE, INC VEH REPAIRS & MTC 22.00 03/14 03/28/2014 9855 EMERGENCY MEDICAL PRODUCTS,I MEDICAL SUPPLIES 418.73 Grand Totals: 712.18 - M = Manual Check, V = Void Check 122 CENTENNIAL FIRE DISTRICT Check Register - FIRE GL Page: 1 Check Issue Dates: 3/12/2014 - 3/21/2014 Mar 21, 2014 02:34PM Report Criteria: Report type: Summary GL Check Check Vendor Description Check Period Issue Date Number Number Payee Amount 03/14 03/21/2014 6305 20150 BETHEL FIRE PPE EQUIPMENT 1,600.00 03/14 03/21/2014 6306 30480 CENTENNIAL UTILITIES FEB UTILITIES 839.43 03/14 03/21/2014 6307 30500 CENTURY LINK CENTERVILLE PHONE 57.18 03/14 03/21/2014 6308 30575 CITY OF CIRCLE PINES 2014 EAP SERVICES 1,414.67 03/14 03/21/2014 6309 31137 CONNEXUS ENERGY ELECTRIC STATION 1 567.84 03/14 03/21/2014 6310 50050 DARREN ECKART AWARDS BANQUET SUPPLIES/ 145.93 03/14 03/21/2014 6311 120450 CITY OF LINO LAKES FEB FEMA REIMB -INS 62,299.39 03/14 03/21/2014 6312 160130 PERFORMANCE PLUS LLC MEDICAL EXAM 288.00 03/14 03/21/2014 6313 160493 PREMIUM WATERS, INC BOTTLED WATER 18.29 03/14 03/21/2014 6314 180600 CITY OF ROSEVILLE MARCH PHONE 1,155.00 03/14 03/21/2014 6315 200150 THOMAS MOTORS, INC VEH REPAIR 03 FORD AMB 1,247.32 03/14 03/21/2014 6316 220200 VERIZON WIRELESS CELL PHONES 105.74 03/14 03/21/2014 6317 240100 XCEL ENERGY ELECTRIC STATION 2 754.36 Grand Totals: 70,493.15 M = Manual Check, V = Void Check 123 RESOLUTION #14 -0 A RESOLUTION TO ESTABLISH A LOCAL BOARD OF APPEALS AND EQUALIZATION, PURSUANT TO MINNESOTA STATUTE 274.014, SUBD 3 (C) WHEREAS, the City of Centerville is authorized to serve as the Local Board of Appeals & Equalization pursuant to Minnesota Statutes 274.01; and WHEREAS, the City of Centerville's powers to act as the Local Board of Appeals & Equalization were transferred to Anoka County temporarily, pursuant to Minnesota Statutes 274.014, Subd 3(a), for the year 2013 and 2014, and WHEREAS, Minnesota Statutes 274.014, Subd. 3 (c) provides for the reinstatement of the governing body of a City to serve as the Local Board of Appeals & Equalization by resolution of said City Council and upon proof of compliance with Minnesota Statute 274.014, Subd. 2. NOW THEREFORE BE IT RESOLVED by the Mayor and City Council of the City of Centerville, Minnesota, to establish the Centerville City Council as the Local Board of Appeals & Equalization pursuant to Minnesota Statutes 274.014, Subd. 3 (c); and BE IT FURTHER RESOLVED, that the Centerville City Clerk is hereby directed to submit a certified copy of this resolution, along with proof of compliance with the requirements of Minnesota Statutes 274.014, Subd. 2., to the Anoka County Assessor before December 1, 2014. Adopted by the City Council of the City of Centerville this day of 9 2014. Tom Wilharber, Mayor Attest: Teresa Bender, City Clerk 124 MINNESOTA- REVENUE Local Board of Appeal and Equalization Training Attendance List Updated to include all courses offered through 121212013 µ *W' .. 714 4901 Wielinski Val Supervisor Turner Twp Aitkin 7/1/2010 11/30/2014 ^ AFZ♦ak� 1 0161 7 1868 Horsman Lynda Supervisor Verdon Twp Aitkin 6/30/2011 7/1/2015 Aft 10f l 11 016 2487 Kuhlman Alam Supervisor Wagner Twp Aitkin 11/9/2011 7/1/2015 I. �zts � Aitldr► < -� /.' - 10 milli T1 /2016 3398 Palmer Robert Supervisor Wagner Twp Aitkin 6/30/2011 7/1/2015 «, :" Aiitt 11 f9/11 7/112CM 5 2851 Martz Robert Chairman Waukenabo Township Aitkin 9/12/2013 7/1/2017 m ; W OUlill Aft 9/12M 7fi 7 ' 52 Allison Sally Supervisor Waukenabo Twp Aitkin 9/13/2010 11/30/2014 2825 Maljamaa Ed Supervisor Wealthwood Twp Aitkin 6/28/2012 7/1/2016 Adn 1OW12 :,.,. Na 4996 Workman Jeff Su ervisor Wealthwood Tw Aitkin 6/28/2012 7/1/2016 2545 Langenbach Doug Supervisor Williams Twp Aitkin 6/28/2012 7/1/2016 320 Berg Jim Supervisor Workman Twp Aitkin 6/28/2012 r 7/1/2016 1836 Holsten Marvin Supervisor Workman Twp Aitkin 6/30/2011 7/1/2015 942 Dickinson Jim City Administrator Andover Anoka 11/12/2013 7/1/2017 4625 Trude Julie Council Member Andover Anoka 11/12/2013 7/1/2017 .,�.., tip -° - "F " !� ,r• r.:'Y .�n.° 4000 Schmidt Steve Council Member Anoka Anoka 11/12/2013 7/1/2017 ~ 3035 Miller Todd Mayor Bethel City ^ Anoka 11/13/2012 7/1/2016 Ae js* 853 Daniels Jane Chair of the Board Blaine Anoka 11/12/2013 7/1/2017 3469 Pekarik Laurie Board member Blaine City Anoka 11/13/2012 7/1/2016 2725 Love D. Council Member Centerville Anoka 11/12/2013 7/1/2017 Rev" ^/0212013 Par 1 38 MINNESOTA- REVENUE Local Board of Appeal and Equalization Training Attendance List Updated to include all courses offered through 121212013 - ADOUAS Centewige Arwke 11M2013' i/1112017 3777 Roeser Dave Council Member City of Lino Lakes Anoka 9/18/2013 7/1/2017 Courdalletwult Col unbia Hoo Anoka 11/12/2013 71U2017 1040 Duraine Jeff Council Member Columbus Anoka 11/12/2013 7/1/2017 ITI Croundmodw Columbus Anoka 1111212013 701/2017 w 3504 Peterson Denny Council Member Columbus Anoka 11/12/2013 7/1/2017 s ° OW4COEW Columbus Anoka 11/1212013 71112017 2437 Krebs Bill Council Member Elect Columbus City Anoka 11/16/2010 11/30/2014 °.. Abyor E Columbus City Anoka 11/16/2010 11130/2014 3890 Sanders Bruce Council member Coon Rapids City Anoka 11/13/2012 7/1/2016 . {t, East Bethel City Anoka 3/28/2011 11/30/2014 3052 Moegede • Heidi Council Member East Bethel City Anoka 3/28/2011 11/30/2014 41 IWW � F Anoka 11/12/2013 711/2017 3870 Saefke Jim Council Member Fridley Anoka 11/12/2013 7/1/2017 { F Anoka 3/2812011 1101201 ro 444 Bolkcom Ann Council Member Fridley City Anoka 3/28/2011 11/30/2014 F t Ando 312812011 :11, 14 { 191 Bailey Betty Council member Lexington City Anoka 10/8/2012 7/1/2016 ��.. L Mitt 10/8012 I11=111 3368 Osterhus Philip Township Supervisor Lindwood Twp Anoka 3128/2011 11/30/2014 114 Wt Lam. Anoka 612 12013 112017 3369 Osterhus Philip Supervisor Linwood Twp Anoka 6/20/2013 7/1/2017 A ° ° Anoka 9/17 7 2374 Koch Jerry City Council Coon Rapids City Anoka 11/13/2012 7/1/2016 7/24/21313 ,�: T 4 Mike Supervisor Atlanta Twp Becker 7/25/2012 7/1/2016 g AUMW Cit - %&or 8!23120 1 - 7 12115 331 Bergerson Carol Council Member Audubon City Becker 7/25/2012 7/1/2016 1198 Felker Sean Supervisor Audubon Twp Becker 8/23/2011 7/1/2015 1476 Green David Supervisor Burlington Twp Becker 6/24/2013 7/112017 VIM 1874 Hoskins Butch Supervisor Burlington Twp Becker 6/27/2011 7/1/2015 481 Boyer Dale Council Member Callaway City Becker 7/21/2010 11/30/2014 Revised 12/02/2013 Page 5 of 138 ' terodfe EfW ffz&WM57 Centerville Special Event Permit Application 1. TITLE, PURPOSE, AND BRIEF DESCRIPTION OF EVENT: ? _ q S )e r New Application: Renewal of or Change in Application: CONTACT PERSON: '4T- 04 a' � W TELEPHONE: OR 2. IDENTIFYING INFORMATION: Attach a written communication from the organization(s) in whose name the event will be advertised which authorizes you, the applicant, to apply /- for . u r this special event permit on its /their behalf Applicant's Name: j c)A ej Cp, etpJl' Title: Address: — 1 (2A Mailing Address: Affiliation: Day Phone: (,:sk . �'2 Ep , _Evening Phone: to w p Emergency Phone: 3. EVENT PRINCIPALS: Following, please list the names, addresses and telephone numbers of all the principals involved in any of the proposed special event. Include professional event organizers, event promoters, financial underwriters, commercial sponsors, charitable agencies for whose benefit the event is being produced, the organization(s) in whose name the event is being advertised, and all others administratively, financially and organizationally involved as principals in the production of the proposed special event. Make additional copies of the following as needed to include as of the principals involved in the proposed special event. m Nae: kL L �Vt) o Nn Ri Organization/Business /Agency /Affiliation: Is this a non - profit organization? VZYes No If you are making application under non-profit status, proof of non profit status must be attached to! his ap plication Mailing Address: la — 2 j 'o I 1 N g N r Day Phone: [ _ 0 3 4 - Evening Phone: Title and functional responsibility with regard to the event: CIS ?-.p Page 1 of 10 127 4. REQUESTED EVENT COMPONENTS: Date requested: 4 — 1 � — 2_m Ll Alternate date: Requested hours of operation: I pj» (a /"1_1 p.m.) To: -A Set up beginning date and time: — Complete dismantle date and time: Zcv i Describe the number and type of animals (if any) to be used in this event: WA^-e Attach a draft of the entry form for participants and /or spectators. Anticipated number of participants: k p 0 u Spectators: 5. INSURANCE: Attach to this application either an insurance policy or a certificate of insurance including the policy number, amount, and the provisions that the City of Centerville is included as an additional insured. (Please note that insurance requirements depend upon the risk level of the event. Also, if your event can be classified as first amendment expressive activity, insurance requirements can be waived under certain circumstances.) 6. SANITATION: Attach your "Plan for clean- up/Material Preservation ". Include number, type and location of trash containers to be provided for the event. Indicate who and how man will be responsible for emptying and cleaning up around containers during the event. Indicate who and how many will be responsible for cleaning up after animals if they are present during the event. Indicate who and how many will be responsible for cleaning up after the event. Describe the number, type and location of portable toilets to be provided for the event (or permanent'toilets to be used in the event.) Include any other plan you have for ensuring post -event cleanliness and material preservation of city facilities, equipment, premises and streets A deposit of $500 will be required for clean -up and restoration. If premises are left in satisfactory condition, this deposit will be refunded in full followin¢ inspection. 7. LOCATION: Please attach a map of your event land design. Check off below items that apply to your event and indicate them on the attached map. Use, where necessary, a "to scale" drawing. A. If a route is involved, the beginning and finish area with arrows. B. If a route is involved, the places where buses, autos or other motorized vehicles need to be considered. C. If a route is involved, attach separate maps giving two or more alternate routes. D. Entertainment or stage locations (grandstand operators should provide you with a "to scale" drawing.) E. Alcoholic beverage concession area. F. Non - alcoholic concession area. G. Food concession area. H. General Merchandise concession areas. \ �� I. Portable toilet facilities (indicate number). J. Event participant and/or spectator parking areas. K. Event organizer's command post. Page 2of10 128 L. First aid facilities. / M. Fireworks or pyrotechnics site. N. Vehicle fuel handling sit. O. Cooking areas. P. Electrical sources to be used for cooking. Q. tables, enclosures, etc. R. Temporary or permanent structures constructed for t] S. Site of electrical wiring to be installed for the event. T. Trash receptacles (indicate number) U. Other - Please describe. g 8. AVAILABILITY OF FOOD, BEVERAGES AND /OR ENTERTAINMENT: If there will be music, sound amplification or any other noise impact, please describe, including the intended hours of the music, sound or noise: (J. S �� S+n, 71 c b►� — n Will alcoholic beverages be served? Yes No L/ PLEASE NOTE THAT SALES OF LIOUOR/ALCOHOL IS PROHIBITED IN CITY PARKS UNLESS THE EVENT IS A CITY CELEBRATION AND PRIOR APPROVAL AND APPROPRIATE LICENSES ARE OBTAINED BY CITY COUNCIL ACTION. If yes, describe what system will be used to ensure that alcoholic beverages will be consumed by persons 21 years and older: If yes, describe how, where, when and by whom the alcoholic beverages will be served: If a casino party, a dance, or live entertainment is part of your event, please describe: Please describe all of the activities of your event for which a license is required, for example: a cabaret license, etc. Attach all required licenses to this application Please note that certain licensing may be required by City, County and State agencies such as a Large Assembly License for gatherings over 1,000 People, some types of food handling licensing Gambling License, Cabaret License, etc. It is Your responsibility to check with the City Clerk or local authorities to determine what licensing is required Prior to submitting this application Page 3 of 10 129 Will food and/or non - alcoholic beverages be served? Yes No If yes, describe sanitation measures, food handling procedures and the nature of the food (such as pre - packaged foods, hot dogs, pre -mixed soda, unpeeled fruit, raw meats, vegetables, fish or peeled and cut fruit.) If yes, you will need a permit from the Anoka County Department of Environmental Health. Please attach a copy of the permit to this application. 9. SECURITY AND SAFETY PROCEDURES: Describe your proposed procedures for set up, operation, internal security and crowd control: — a r If the event is to occur at night, describe how you are going to light the event area in order to increase the safety of participants and spectators coming to and leaving the event: If your event includes vehicles or animals, describe the minimum and maximum speeds of the event and the minimum and maximum intervals of space to be maintained between units: Attach to this application a copy of your building permit(s) if you are installing any electrical wiring on temporary or permanent basis and /or if you are building any temporary or permanent structures such as bleachers, scaffolding, a grandstand, stages or platforms. Attach a copy of your fire department permit(s) to this application if you will use parade floats; an open flame; fireworks or pyrotechnics; vehicle fuel; cooking facilities; enclosures (and tables within those closures); tents, air supported structures, canopies, or fabric shelters. Give the name, address and phone numbers of the agency or agencies which will provide first aid staff and equipment if required. Attach additional sheets if necessary. Name of agency: Name of Representative: Address: Day phone: Evening phone: Indicate medical services (if required) that will be provided for this event: Page 4 of 10 130 Ambulances: Doctors: Nurses: Paramedics: 10. VENDORS OR CONCESSIONAIRES: Describe what vendors /concessionaires you will allow in conjunction with the event, and the purpose of these concessions: Describe how you intend to regulate, monitor and control the type, number and quality of vendors /concessionaires whom you may permit to operate in conjunction with the event: 11. CITY SERVICES /EQUIPMENT: Describe city services and /or equipment requested for this event: City barricades, cones, signs, picnic tables and other equipment which may be borrowed on an as- available basis. You should make advance arrangements to pick up and return this equipment. If you or any volunteers cannot pick up and return this equipment, please attach a letter requesting these services and explaining why your organization cannot perform them. This will be reviewed, then appr eyi or denied by the public works foreman. QS ACV 12. OTHER PERTINENT INFORMATION: Please list below any other miscellaneous information you feel would be important and have a bearing on the approval of this Special Event Permit request: 13. FEE STRUCTURE / EVENT CHARGES: If there is a fee or donation required as a condition of attendance or participation of this event, please describe the amounts to be collected from various categories of participants or spectators: 14. If a donation is requested on a purely voluntary basis, describe how you intend to inform participants /spectators or others that they may participate in the event whether they make a donation or not: Page 5of10 131 Centerville Special Event P NAME AND TYPE OF EVENT: tf�) S CD (0 OU h/ I DAY, DATE AND TIME: 4 1 \ a wl Z V vn 1. PA W AND RECREATION DEPARTMENT FINAA APPROVAL AND SIGN OFF ature Title Date: Please check or use N/A (not applicable) where appropriate: 1. Final check has been made of application requirements. 2. Event is approved by City Council. 3. All required permits are issued and on file. 4. Refundable clean up fee has been paid. 5. Insurance Certificate is on file with City Clerk 6. Surety Bond is on file to secure payment for applicant's obligation to the City. 7. Application is complete. 8. Special conditions are attached. REVOCATION: Upon mutual consent, the City Council may revoke a special event permit if the conditions set fourth in the permit application are not being followed. Permit is hereby revoked: Signature Title Date: Reason(s) for revocation: TO BE REVIEWED /APPROVED AND SIGNED BY AFFECTED CITY DEPARTMENT HEADS Page 6 of 10 132 April 3, 2014 Dallas Larson, Centerville City Administrator Jim Keinath, Circle Pines City Administrator Jeff Karlson, Lino Lakes City Administrator Gentleman, Please accept this as my official letter of resignation from the Centennial Fire District. I have accepted a position with the City of Andover and it was formally approved by their Council on Tuesday night. In order to meet the requirements of the City of Lino Lakes policy for separation, my last week will be the week of April 21 If I am not needed at the Fire Steering meeting on the 24 I will likely take some time off before the end of the week and go someplace warm. Words cannot express the enjoyment I have had working for the Centennial Fire District. The complexities of a joint powers operation allowed me to learn so many aspects of leading teams and operating a fire district. I will always be thankful for our relationship and the opportunities you gave me and will carry the lessons I have learned here with me forever. As a new chief in a complex system, your mentorship and guidance helped me make sound decisions and direct the fire district to a new level. The collaboration amongst the steering committee members assisted in raising organizational morale by providing a safer and more family friendly environment for our volunteers. Over the past five months however, the latest move by Lino Lakes to withdraw from the district is providing an opposite affect and I am afraid it has had a negative impact on our personnel and public safety overall. Though I understand all sides of the issue, I believe it could have been resolved if more time were offered and the insults were left at the door. The withdrawal will cost every city more money and will be a loss for everyone. My biggest fear is the decision will reduce safety for the firefighters and lower service for all if not designed using national standards and best practices. I encourage each of you to continue to support the firefighters and their families as they are the foundation to everything needed to have an effective fire department. Anyone can build a patch, but that does not build a fire department! Thank yo a continued support and I wish you all the best with the challenges before you. i er , L. eich ervilhe 1880 Nam Street, Cetttef%114 MNSS038 ` EStaffish &i 1857 6S1- 429- 3232or 'Fax 6S1- 429 -8629 April 1, 2014 Phil Belfiori, Administrator Rice Creek Watershed District 4325 Pheasant Ridge DR. NE #611 Blaine, MN 55449 -4539 Re: FEMA -FIRM maps Dear Mr. Belfiori: As you know, the Federal Emergency Management Agency (FEMA) is revising its flood plain mapping in Anoka County. During the data gathering phase, FEMA was supplied with the flood plain study done by RCWD (Houston Engineering) for Clearwater Creek. The RCWD study was more favorable to development than the earlier FEMA mapping. Several months ago, it was evident that FEMA would not be able to use the RCWD mapping data, without additional work being done. At the same time, I understood that RCWD would work with us to get FEMA what they needed, but any costs to provide that date, would need to come from the City of Centerville or the benefitting landowners. In a memo from FEMA dated February 20, 2014, we received specific details outlining what additional information would be needed. We then asked your consultant to review what FEMA was asking for and provide an updated cost estimate. At that point Houston received signals that they would not be working for RCWD and that they (Houston) would have to determine if they wanted to do the work for Centerville. Houston declined to do the work, citing potential conflict of interest. We have always viewed RCWD as a partner working with the City toward mutual goals, and this seems like something we should be able to accomplish cooperatively. We want our property owners to be able to develop their land within the constraints of reasonable regulation. If the FEMA flood plains are more burdensome than they need to be, we should be able to work together to fix that. The City Council of Centerville passed a resolution on March 12, 2014, requesting that the Board of Managers of RCWD assist in securing the additional data requested by FEMA. We do not expect RCWD to pay for any of the costs of the additional work I will attend the April 9, Board meeting to discuss this matter. Thank you. Yours truly, VARAA -fmft ,aM. Dallas Larson, Administrator Enc. RESOLUTION #14017 A RESOLUTION PETITIONING RCWD FOR ASSISTANCE WITH FLOOD PLAIN STUDY WHEREAS, the Federal Emergency Management Agency (FEMA) has undertaken a study to update flood insurance rate maps (FIRMS) for Centerville as well as other parts of Anoka County, and WHEREAS, Rice Creek Watershed District completed a flood study in 2011 which shows flood protection elevations along portions of Clearwater Creek should be as much as four feet lower than the findings of FEMA, and WHEREAS, the lowered regulatory elevations if accepted by FEMA could save Centerville property owners and residents thousands of dollars in flood insurance premiums as well as substantially lower development costs for unimproved properties near Clearwater Creek, and WHEREAS, FEMA has indicated that it may be able to use the RCWD study findings, if certain additional work is completed and the data is submitted, and WHEREAS, RCWD, apparently believing that it may be burdensome on staff to participate with the city, has been reluctant to assist the city with securing the additional work requested by FEMA, even though the most cost effective way of gathering the required data would be to have RCWD consultant engineers do the additional work. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF CENTERVILLE, MINNESOTA, 1. The City hereby petitions the Board of Managers of Rice Creek Watershed District to assist in securing the additional engineering work to sustain the regulatory flood elevations of RCWD's previous study. 2. The City would enter into a written agreement to pay consultant fees to do the additional flood plain study and would reimburse reasonable costs incurred by RCWD for its assistance. Passed by the City Council of the City of Centerville this 12th da o f March, 2014. Tom Wilharber, Mayor c. Attu; Teresa Bender, City Clerk lemo To: File From: Laura Chap Emall: Phone: Date: Feb 20, 2014 Ref: cc: Subject: Comments regarding potential appeal of flood hazard boundaries in the City of Centerville and Lino Lakes Background New Zone A modeling and mapping was provided for the Clearwater Creek watershed in Anoka County. it was partially incorporated into the preliminary DFIRMs, however the effective LOMR 95 -05 -339P for the City of Centerville was not superseded with this new data as it includes detailed study and a floodway, and detailed study may not be replaced with approximate analyses. The effective LOMR is based on TR -20 and HEC -2 analyses, and was delineated on USGS topographic data. The purpose of this review is to provide the City of Centerville with guidance on what information would need to be submitted to upgrade the existing Zone A modeling within Anoka County to a detailed study. For purposes of this review, Atkins used the exported XP -SWMM synthetic event models. Atkins ran these in version 2011. Additionally, the time interval in the global rainfall data was corrected (it appears the 24 hour data is given in 0.1 hr increments, not 1 hour increments). While an overall review was performed for the model, the focus of the review was on the areas within Anoka County_ Comments 1. The effective data is Zone AE and includes a floodway. The current Zone A model includes the 10-, 50-, and 100-yr storms. The revised modeling would need to include a 500 -year profile as well as a floodway run_ Please see the following document regarding floodway modeling in SWMM: httol/www.fema. media library-d ata/20130726- 1553- 204904M80/frm swmm pdf 2. Only the 100 -yr floodpiain delineation was provided. Please provide the 500 -yr delineation as well as a mapped floodway. 3. The model was developed in lnfOSWMM, and the synthetic storms were exported to XPSWMM. However, notes included with the model indicate that the XP -SWMM model results do not match the InfoSWMM results. InfoSWMM is not on the FEMA approved models list In order for this model to be the effective detailed model for the area, the model will need lo be exported to either EPASWMM or XPSWMM and run in one of those models. 4. The report states that the 100 -yr maximum profile was created by choosing the maximum elevations from the 24 -hour rainfall and the 10-day runoff event. Please provide the 10-day runoff model. Also, please note that this method may cause difficulties with the floodway analysis, and it may be better to break the model into segments so that only one event per segment is being used for the 100 -year profile. 5. Please provide a map of the sub -basin delineation which includes the topographic data_ This can be digital (provide the digital contours) or a pdf /paper map. 6. For flood insurance studies, FEMA requires that XP -SWMM models are calibrated to actual events. The review memo included in the supplemental data indicates that the model cannot be considered calibrated for flood events due to the lack of data, and that Clearwater Creek cannot be compared to regression values as the drainage areas are too urbanized. Please provide comparisons of modeled flows to either regression equations with urban aclustments, or rational method calculations, as appropriate. oMM Documentl l emo 7. FEMA standards are that models use normal depth as the downstream boundary condition. The backwater condition from the receiving waters is then drawn in the FIS profile as a level line on the downstream end until it meets the modeled profile. Please use normal depth as the model boundary conditions, if practical. 8., There are a number of warning messages that appear when the model is run in XP -SWMM. Many of the conduit lengths are less than the default minimum conduit length parameter in the model. 9_ There are warning messages in the output file for storage nodes where the area decreases between stages. These nodes are SJ3BR3 060, SJ3MT 046, SJ3MT SJ3MT SJ3MT 099, SJ3P1 007 and SJ3P1 008_ Please review and revise if necessary. 10. Please specify which vertical datum (NGVD29 or NAVD88) was used for the model input data and results. 11. Please note that the model will have to be checked for map-model agreement for water surface elevations before incorporation into the final maps. The model documentation indicates that the XP- SWMM results do not match the InfoSWMM elevations used to generate the floodplains. The final model results (whether XP -SWMM or EPA -SWMM) must match the mapped floodplain elevations. 12. The current Zone A floodplain mapping does not extend all the way downstream to Peltier Lake. As the differences in elevation between the Zone A modeling and the effective elevations appear to be significant, the tie-in point may be Peltier Lake. 13. For purposes of the FIS, the modeled and mapped lengths along the profile baseline must agree within 25 feet. Calculated link lengths from GIS were compared to the modeled link lengths, and the following links had length discrepancies that could not be explained by the presence of storage areas: CJ3MT 013, CJ3MT 014, CJ3MT 001, CJ3MT 029, CJ3P1 003 and CJ3MT 012. (Typically, XP -§WMM storage areas along the profile baseline are shown in profile as areas of constant water surface elevation; they are measured from the map as their length is not represented in the model; these areas are added manually to the profile after the model results are exported.) 14. Please verify the link length of CJ3BEL 013, as the model data, GIS attributes, and calculated GIS lengths all disagree. 15. There are areas of disconnected flooding: two near node SJ3P1 007, one near node J3P1 006, one near node J3MT 017, three near SJ3P1 016, one near node SJ3MT 021, one near J3MT 012, one near SJ3MT 013 and one near SJ3MT 036_ Please clarify whether these should be shown as separate ponding areas with stillwater elevations, connected to the floodplain, shown as a separate profile and connected with ditches/culverts that contain the 100 -yr flood, or deleted entirety. 16. There is a gap in the flooding along the link between J3MT 029 and J3MT 030 that does not appear to be due to a culvert, please adjust the delineation. 17. Please submit the floodplain and floodway delineations on a topographic workmap with the vertical datum used, signed by a professional engineer. DIEM AM ero.�uw. sincc,e. Documentl ev tery ffe r / / 1880 Wai Street, Centerville, .WX55038 E- ;wbfish 'l! 185 651 -429 -3232 or Far, 651- 429 -8629 March 26, 2014 To: Park and Rec Committee Re: Property at Mill Road —Lot 4, Block 2, Petersons Old Homestead Addition Background. Last summer, the Council determined that several parcels of property were surplus and that they should be sold. Those were listed with Gaughan Realty. The Council late in 2013, passed a resolution directing that the proceeds of the sale of all of the parcels be directed toward paying down the debt that financed 21" Avenue \Commerce Drive improvement. Recently, the Park and Rec Committee asked the question of whether the proceeds from the sale of the referenced lot, should go to benefit Park and Rec purposes. That suggestion is a valid request, if the property was either dedicated in the subdivision for park use, or was gifted with that restriction. 1. Was the lot dedicated on the plat for park use? The answer to that question is no. The plat was recorded with no park identified. The lot in question has no restrictions mentioned on the plat, other than the typical drainage and utility easements along the boundaries. 2. Was the lot transferred to the city to meet park dedication requirements? That answer also seems to be no. The minutes of the Council meeting of July 26, 1978, mention a $50 per lot "park fee" to be collected on all building permits in the plat. We cannot find minutes of the Planning and Zoning Commission meetings for February and March 2008, so any recommendations from that body are not available, but we would expect the Council action to be the final word on the issue. Building permits subsequently issued, show collection of $50 each for "park" fee. This amount is consistent with a plat approved for 20 lots of Rehbein Estates in 1979, which also required $50 per lot park fee. 3. Was the property purchased by the city, or was it gifted; with the understanding that it would be used for park purposes. The fact that the deed was given to the city approximately one year after the plat was filed would indicate that the transfer likely had nothing to do with subdividing the property into lots. The ownership was transferred by Certificate of Title in the fall of 1979. The Title has no use restrictions, but does mention the property is subject to drainage and utility easements. Also, I could not find any listing in the minutes of a disbursement to Peterson indicating the property was paid for in the normal sense. I could only find two mentions of the lot in the Council minutes. On August 8, 1979, it mentions the lot in conjunction with ditch work being done on Mill Road: "...cost would be determined if fill dirt could be used off of Lot 4, Block 2, Peterson's Old Homestead Addition. Mayor was to check with realtor concerning Lot 4." At the same time, a paving project for this section of Mill Road was completed in 1979. On August 22, 1979, the meeting minutes state: "Charlotte Peterson appeared before the Council concerning the conveyance of Lot 4, Block 2, Peterson's Old Homestead Addition to the City." "Letter stating same is attached to and made a part of these minutes." A motion was then made to accept lot. Two letters were attached to the minutes, but neither seem to have a bearing on this property. They refer to another property transaction involving Petersons and a party named Wegleitners. There was also a request from Petersons for a variance on other nearby property that they owned. It is possible that the conveyance had something to do with those transactions, but the minutes do not say. Conclusion. The records are not completely clear on why or how the city came into ownership. It seems certain that it had nothing to do with the platting or development of the subdivision, as a park fee was collected with building permits during that time frame on this and other subdivisions and approval of the plats mention the park fee. Was the lot gifted to the city, or was it in exchange for some consideration relating to the street improvement, the ditch project, the Wegleitner transaction or variances? We just cannot be certain, the records are not clear. If the Petersons did gift it to the city, there should have been mention of restrictions on its use mentioned in the minutes. Where does that leave us? Over the years the property was shown on various maps as public and later as "future park." So it is easy to see why Park and Rec Committee would conclude that it should have any proceeds from the sale. Even though a past Council may have listed the property on maps for a future anticipated use, there is no binding commitment if there are no deed or plat restrictions requiring the property to be used in that manner. In my opinion, the decision to sell the property and what to do with the proceeds is up to the Council of today. Dallas Larson, Administrator 3/12/2014 Printable View To print this document please press Print t WON= to the Web site of Anoka County Property Account Summary Trent General Information Property ID 14- 31 -22 -43 -0013 Situs Address UNASSIGNED SITUS , CENTERVILLE, MN 55038 -0000 Property Description PETERSONS OLD HOMESTEAD ADDITION LOT 4 BLK 2 PETERSONS OLD HOMESTEAD ADD(SUBJ TO EASE AS SHOWN ON PLAT) Last Sale Price Last Sale Date Last Sale Document Type Linked Property Group Position Status Active Abstract/Torrens 1A ll Torrens Parties Role Name Owner ICENTERVILLE CITY OF Document Recording Process Dates Abstract Documents Have Been Recorded Through 03/07/2014 Abstract Documents Have Been Mailed Through 03/07/2014 Torrens Documents Have Been Recorded Through 03/07/2014 Torrens Documents Have Been Mailed Through 03/07/2014 A ctive Certificates Of Title Type lCertificate Number Certificate Date CRTST CERTIFICATE OF TITLE - STANDARD 147576 10/09/1979 Documents Recorded Within 30 Days Of "Recorded Through" Dates Above Type JA bstract/Torrens lRecorded Number lRecorded Date No Documents Found IlProperty Characteristics Lot Size W100* 165 * Lot Size: Approximate lot size in feet, clockwise beginning with the direction the lot faces T ax District Information School District Number and Name CENTENNIAL SCHOOL DISTRICT #12 City Name CENTERVILLE Watershed RICE CREEK WATERSHED Property Classification Tax Year Classification 2014 5E- Exempt Properties 2013 5E- Exempt Properties Property Values Tax Year Description Amount 1/2 VOLUME No. 266 PAGE 47576 CERTIFICATE OF TITLE No. 47576 Transferred from Certificate Number(s): 47330 Originally registered on the 13th day of September, 1971, Volume 113 Page 320, DISTRICT COURT FILE No. T -1909 STATE OF MINNESOTA t S.S. REGISTRATION COUNTY OF ANOKA f This is to certify that t t City of Centerville, a corporation under the laws of the State of Minnesota, whose address is 1694 Sorel Street, in the City of Centerville and State of MN, 55038 is now the owner of an estate, in fee simple of and in the following described land, situated in the County of Anoka and State of Minnesota, Lot 4, Block 2, PETERSON'S OLD HOMESTEAD ADDITION, according to the plat thereof on file and of record in the office of the Anoka County Registrar of Titles. Subject to drainage and utility easements as shown on plat PETERSON'S OLD HOMESTEAD ADDITION filed as Doc. # 100772 on July 27, 1978. THIS CERTIFICATE OF TITLE IS GIVEN TO REPLACE THE PAPER COPY OF THE SAME CERTIFICATE OF TITLE NUMBER SHOWN IN VOLUME 151, PAGE 56 BY TED J. OMDAHL, THE ANOKA COUNTY REGISTRAR OF TITLES. Subject to the encumbrances, hens and Interest —ted by the memorial underwritten or endorsed hereon, and subject to the following rights or encumbrances subsuhntg, as provided to Section 508 23, Minnesota Statutes, nianely I Liens, clauns or rights arising under the laws or the Consutuuon of the United States, which the statutes of this state cauu,t require to appear of record 2 Any real property tax or special assessment 3 Aim lease for a period not erceeding three years, when there u actual occupation of the premises under the lease 4 All rights m public highways upon the land S Such right of appeal or right to appear and contest the apphcat— as u allowed by law 6 The rights of any person in possession under deedor contract for deedfrom the owner of the certificate of title 7 Any outstanding mechanics hen rights which may east under Section 514 01 to 51417 Certificate of Title Number 47576 page I of 1 MEMORIAL OF ESTATES, EASEMENTS OR CHARGES ON THE LAND DESCRIBED IN THE CERTIFICATE OF TITLE HERETO ATTACHED IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of my office this 9th day of October, 1979 Maureen J. Devine, Registrar of Titles, In and for the County of Anoka and State of Minnesota. a — i N f r from No. 47330 OrWm2k re isterad the 13th day of September 1971 Volume 113 page 320 �l'ATE �MiNNB510TA, S.S. � CbumYoFAwoKA �- -- a una A+ +h lam of hp o aau/, � G ��� , � � a � , �r�uua� r�vl �rr��nr �,, �. r, �. ai. �nd��ad� ,��°�%� Lot 4, Block 2, PETERSON'S OID HOMESTEAD ADDITION, according to the plat thereof on file and of record in the office of the Anoka County Registrar arab2 Subject to drainage and utility easements as shown on p].a +.F,ETi6cN,S OM HOMESTEAD ADDITION filed as Doe. #100772 on Julj 27 ; 41 78. ° s�' suel►. WW. artll�s +a►t/tt[eai/Ate�eac�i ��x S/lJ:i�i, 7Jl*s� AraweaG� %°"�•° 9• 6, � ,lo,�y�.I1Ft- ,�.�wrGA�..GFr .�,.i%.r�alr+%E(y.Gf.R,vfyi4ta e City of Cent is a corporation orp 8 and s XTS t y3 - - �h�1811B.�f.E12_St$ta_pf Rii �mRanl.a ha��i nv i {�� t• nevi �l �lanp of , * CenteTVille Minrfesota 550 Q �R lB� beta le .�,�Iwoy��kg 111101 do&s-,g — -� By a parr 0P.f14TATE6, EAS$AfENTS OR C HARCE9 ONTTIE4'LVD DESCRIBED LVTHE L$RTT/°"TE 0P93'=BZWV ATTACHED. DOCUMENT KIND pP F DATE OF MOISTMT$ON DATE Or UKTAUMDIT NUMMA INFTRUKDM MOMTN DAY YEAR A.M. M. P.M. AMOUMT RUNNING fN FAVOR OF SIGNATURE OF REGISTRAR MONTN DAY YEAR Planning & Zoning Meeting Tuesday, December 6, 1977 7:00 PM Present, Bob LaMotte, Chairman Bob Lindgren Mel Dupre Jerry Sundberg Tom Wilharber Walter Prachar, liaison Clarence Smith of Amenity One, Inc., made presentation on his company's qualifications as an urban and regional planner, park planning projects, drawing up new zoning regulations, and updating land use controls. Matter will be turned over to City Council for advisement. Ray Murray, Joe Perkowski and Frank Zimny appeared before P & Z with reference to becoming eligible for participation on the board in 1978. John Peterson appeared before committee with preliminary sketch of his plat centered around Mill Road and Main Street. Plat covers approximately 28 acres. P & Z looked at land for park dedication, possibly phasing of portions of plat over the next few years and recommending that the double bungalows shown on the plat be called multiple dwellings. John will appear at next P & Z meeting on December 20th for further consideration. Bob LaMotte requested the P & Z to look at his property on Heritage Street, which is 3 lots, centered by his house which he would like a variance granted. Mel Dupre recommended that a variance be granted on Ordinance #15, Section 6, paragraph 10 on the following piece of property: PLAT 27853- Parcel 2545 - Part of Lot 15, Auditor's Sub - Division No. 48 Revised described as follows: That part of Lot 15, Auditor's Subdivision No 48 commencing at a point where Northerly line of Lot 15 intersects westerly line of right of way of Anoka County State Aid Road No 4; thence westerly 6 yards along northerly line of said Lot 15 a distance of 350 feet; thence southerly and at right angles to said northerly line of said Lot 15 a distance of 125 feet; thence easterly and parallel to northerly line of Lot 15 a distance of 350 feet; more or less to westerly line of Anoka County right of way of State Aid Road No. 4; thence northerly along westerly line of said right of way a distance of 125 feet to point of commencement. - except west 8 feet of above description and part of lot 15 Auditor's Subdivision No 48 revised described as followai that part of Lot 15 Auditor's Subdivision No 48 described as follows; commencing at NE corner of said Lot 15; thence southerly along east line of said Lot 15 225 feet; thence west at right angles 200 feet to point of the land to be conveyed; thence continuing west at right angles 142 feet to a point; thence North at right angles 130 feet to a point; thence east at right angles 142 feet to a point; thence south at right angles 1301 to the point of beginning. +"M . �. � � � _:. �'?� ��� � �� �. � � -� � � �.,, � ��� �' `\ � � �, �` i �� � - � w �. �,� ' �� �y �� ,_ � , .�� �� � .� ���. �� 4� The City Council of the City of Centerville met on Wednesday, March 8, 1978 in the City Hall. Mayor Prachar called the meeting to order at 7100 pm. Present were: Burque, L'Allier, Murray, Peterson and Attorney Hawkins. Elmer Murray made a motion to accept minutes of meeting held February 22, 1978, Fran Burque seconded it, motion carried. Leon L'Allier made a motion to issue a license to D -C General Builders for sewer construction work in the City of Centerville during 1978, Fran Burque seconded it, motion carried. Elmer Murray made a motion to adopt Resolution #7, Leon L'Allier seconded it, motion carried. Resolution #7 is attached to and made a part of these minutes. Mayor Prachar advised council of a request from the Rice Creek Watershed District asking for copies of our meeting minutes. Council advised clerk to put them on mailing list. Discussion was held on the 1978 fire contract with Lino Lakes. Clerk from Lino has informed Centerville clerk of change in square mile coverage from 20 to 15. Lino council was to discuss contract at their council meeting on March 13 and advise Centerville accordingly. Matter was tabled until the March 22 council meeting. Complaint has been voiced on the condition of property at 6892 Centerville Road. Clerk was asked to inform Building Inspector of situation and report back. Elmer Murray made a motion to approve agreement with Barton - Aschman, City Planners, John Peterson seconded it, motion carried. Discussion was held on preliminary plat of LeRoux Addition. Matter tabled until next meeting. Council requested the Attorney and Bngineer to work on "old" Mound Trail legal description. Clerk informed City Council Board of Review for the City would be held on Wednesday, May 17 at 7 :00 pm in the City Hall. Clerk read letter from Walt Williams on the Clearwater Creek Report prepared by the Corp of Engineers. Council instructed Mayor to draft letter to the Corp of Engineers advising them that the City is not entirely pleased with their report. Street restoration study was discussed. Council consensus was to go along with Plan A and the Mayor was to call the Anoka County Highway Department to find out what the County plans to pick up on the cost of the 2 -block Centerville Road restoration. Walt Williams was to come to March 22nd meeting with two plans: Plan A - The County picking up half of the Centerville Road 2 -block restoration and city picking up other halfi Plan A - Dropping Centerville Road restoration completely. page two City Council meeting minutes - March 8, 1978 Planning and Zoning have recommended that the City give approval to the preliminary plat of Old Homestead Addition (John Peterson). Elmer Murray made a motion to approve the preliminary plat of Old Homestead Addition pending approval by the Rice Creek Watershed, Fran Burque seconded it, motion carried. Consensus of council that the tennis court committee could make decision on colors for tennis court surface. John Peterson made a motion to pay bills from General Fund checks #3303 -3330, Leon L'Allier seconded it, motion carried. Copy of invoices to be paid is attached to and made a part of these minutes. John Peterson made a motion to pay bills from Sanitary Sewer Fund, checks #2156 -2159, Leon L'Allier seconded it, motion carried. Copy of invoices to be paid is attached to and made a part of these minutes. Leon L'Allier made a motion to adjourn meeting, Elmer Murray seconded it, motion carried. Meeting adjourned at 10:20 pm. Res tful y submitted, Lu Pr char, Clerk- Treasurer Pursuant to due call and notice thereof, the City Council of the City of Centerville held a public hearing on July 26, 1978 at 7 :30 pm in the City Hall. Present were: Burque, Laska, Murray - late L'Allier. Purpose of hearing was to discuss the street restoration project. Clerk advised council that the city has not received word from HUD on their pre - application and Fran Burque made motion to continue hearing on the above Wednesday, August 9, 1978 at 7 :30 pm, Leon L'Allier seconded it, motion carried. Mayor Prachar called the regular meeting to order at 8 :00 pm. Presents Burque, L'Allier, Laska and Murray. Fran Burque made a motion to accept minutes of meetings held July 12 and July 21, Floyd Laska seconded it, motion carried. PETITIONS AND COMPLAINTS: Items were discussed which have to be completed before C. W. Houle Landscaping receives final payment on the sewer project. They are: (1 The combination storm sewer and sanitary sewer on Centerville Road should be corrected; (2) The dead sod in Mrs. Carpenter's yard should be replaced; (3) Correct the infiltration on Mound Trail; (4) Make the necessary corrections on LaBossiere's driveway; (5) Sod the disturbed area by Romie's service; (6) Make the nessary cor- rections on Leon L'Allier's driveway. Leon L'Allier made a motion to pay contractor the remaining $11,656.78 when above items are taken care of, Floyd Laska seconded it, motion carried. Discussion was held on extending sewer service to existing homes of James Palmer and John Lundblad situated in the Center Oaks project. The two parties do not wish sewer service at this time. Mr. Arthur Raudio of First Guaranty was in attendance advising council he has not received easements from the two parties which are required for proper drainage in front of their homes. Floyd Laska made a motion to extend time limit until August 2nd for Palmer and Lundblad to resolve the drainage easement problem and if not done at that time, council grants permission to First Guaranty to provide drainage on the back lot lines of Palmer and Lundblad homes along Lots 7 - 19, Block 2 of Center Oaks #1, Elmer Murray seconded it, motion carried. Discussion was held on amending Development Contract between City and First Guaranty. Elmer Murray made a motion to extend time limit on all requirements of contract until October 1, 1978 with the exception of blacktopping streets which is extended until July 1, 1979 or at which time the City Engineer recommends it be done., Floyd Laska seconded it, motion carried. No building per- mits will be issued until rough grading is done, a Certificate of Occupancy will not be issued until streets are completed or partial street base is ready for blacktopping and there will be no con- nection to sewer line until line is approved by City Engineer. Final plat of Peterson's Old Homestead Addition was presented to council. Leon L'Allier made a motion to approve Peterson's Old Homestead Addition, Fran. Burque seconded it, motion carried. A $50. park fee will be required on all building permits issued on this plat. r City Council. meeting minutes - July 26, 1978 page two Registered Land Survey # 65'was presented to council which is a part of Registered Land #47 and named Peltier Lake Hills. Floyd Laska made a motion to approve R.L.S. #,S and authorize the Mayor and Clerk to sign on behalf of the City, Fran Burque seconded it, motion carried. Attorney Hawkins advised council Mr. & Mrs. Harold Leibel's attorney has written him that it is the Leibels" opinion that the City of Centerville has made a wrongful taking of their real estate by the lift station being placed on their property without condemnation and also that there have been other encroachments on their property without the proper pro- ceedings. Attorney Hawkins advised council of his answer after consulting with City Engineer. Elmer Murray made a motion to appoint Mrs. Val Carpenter to the Community Education Advisory Council, Floyd Laska seconded it, motion carried. Fran Burque made a motion to adjourn meeting, Leon seconded it, motion carried. Meeting adjourned at 10,15 pm. Res a fu y ubmitted, Lu Pr ch r, Clerk i `'BUILMNG 'PERMIT . , VIIJ AM OF ' CEIVTEItVILM 111M. � Z-L -* •�' - -- - - - - -- B Adftm 7 + � � Address - - - -- — s r : - , - - - -- -- -- - -- -- - Zoe motion Number ' LEGAL DBSC�TION 4 ftft of 14 Adoo nsSC; oi�t o� Foam W= e -- ' A go - Type Valnstian a- (coeetrad or MarW Value) a srgest Mrbootal Craw $ecdoq) VAItAN= Deaa'Ip = of Ordnance Varim*x) it granted wttL thb permit• pwft San. Swror I water I Stoem Sewer _ suet > lase' Sm+ehatBs s r 1 n UG Z5 pimdolm In beeeby seafeted a butldfng as bo do doeo *o& Tbb permit is Seaabed upod w e:j = coed tim that Se peesoq peke a c*k% .lhm a ooepoea= . tbia t0 wbodn it b gesntbd etbw with his q pnK employees. workmm and obwaftacbm apse to Wde by and ooafaeai to all OWInanees d the •'Viilelp'•at Centerville rag e+diap the 000steucdoo. atteratION maintnsni e repair lend dWWdm of %43d s witbbn the Ctty; =d that,b permit may be re mkW at any time upon - wNwoe of violadons of mw of IM pco, of ■ N rergd by 04 ; pm* v tbm eta (ft "s tl�. �eeaof aid �o • r l.' '1�:'ryy IS' �_,{� A 1. l•' 1. p!I) dqa eiM1 b flee its tloei of tills peemtt ae pravUsd b7 Oedbana. ' : � I:? =`• ��:t�v� "•'." :�; ?7:',•�:`�i''vl;, 4 -' , "iiti }, s2 ki`+ : ;Yi:Y`.t:•i� y - 'BUILDING PERMIT Vn"GE OF CEIVIE tvnjLIEI NOM DaW, - vwma 10_ d&vn Local= OF PROFOM -BUX[mm LEG" PIA of I& La MO& OF PROPOSED WOU J Type of -NO. Of stmies:__ s 44. 4 Am- vahattim (Comiam or (Laisw H=i=uw Cross seqdm) mAfiAW= D esoriptlon of 0rdhkffiWeVa&nce(s) If VanW with is ig ALL TOW i Pzww pus Fin sure - Tot* to ftmkdm Is haft granted r a bubft as bwdn dose gm& Tift -penta Wlgrgn%d up= ft man M &tLm that the person, p arto I p, &M or 0011vom- tim to wham it is grated. UW&w with Ws agents, employees, workmen and wbombuam a" to abide by =d C mfoem to au 0MJavmm6ftb*' Village otC9ntwvMe r 1 9 1239 ft mm-w akmtk)z6 m - 1p4 repair add dmivm)H ion (*bund1hW Oxdhmnwfthb ft C1W god - dW tthis ft pwm may be revalued at my time upon "Wem of vwxdm of mw at tdp pwbmm at am r m The covered by this pwn* wft1ft silly d" of 09 dde bftW and to dGmip suspen lob or abmdmm" d smh week ftr ps": 4f. jjW' all M&'wq& by.'" 7. -1 twes�r (ate MR pqvfM by 0! sa I ?x 'BUILDING PERMIT VHJA4M OF-CMnMVU1X, MM. AR Imts: lo7 --morwt NO 0 . Address IC C" 0 LOUTM W PROPOM XMMM ?AM*W 7 - ,-i 0 0 LEGAL Pad of Lot Lot Block %dden at sob*v. Dwoulwirsm OF PROPOSED WORK . . . . . . Demn"M 7101e,-1�4 Z4 Type of C onstrmitloi_ —NO. Of storie• V I (Comb*& or Market Value) (Largest HO&Onfal CM0. VARIANM Dommiptim of Ordhm= Varhme(s) if granted with We mmit: A (Doe wo 2ma pwa" Parks && sewer ,. water mom-sow Street Olow TOW ]Fee per &&sup / l am-- Lz 7 0, Permisdan is ,� Sra�ed tQ�'":..:....�'. -�_� ����.,� .._.�.�.�'��" • • a bullcift as "Wdo &ouft& M& permit is Scanted upon rim wpm condition that t pares Mina or . tici to whom It i S . toget M* k" ammft emob"M workmen and sabomtractma asm to OW-W mdL 0006w to all '041oances of lbe'Vglqo of Centerville regarding the motruction, alteratim nftWunm repair and d..Wm ot • bdWWp witMa the Mr. and that Ibis permit may be rw*ed at any time upon whence of vkkdm of SEW of the pov isioos of Add Ordiftnow 7bb M ored by this permit within qty,(" dip of b*4@WhwW. - - - - - - 2.&- r or 41 a "noty ( �ftw two is im - 860m" iiromadom at oft.pormsit as p 1► v M.T. ANN. Pursuant to due call and notice thereof, the City Council of the City of Centerville held a special meeting on Monday, July 16th in City Hall. Mayor Prachar called the meeting to order at 7930 pm. Present were Burque, L'Allier, Laska; absent, Savela. Discussion on the park fee arrangement for Rehbein Estates plat was held. Consensus was for the 10 acre, 20 lot plat the park fee would be $50. a lot totaling $1,000. payable before the plat is signed by the mayor and clerk. Clerk will advise Gerald Rehbein of same. Gunnar Pederson of the Metropolitan Inspection Service appeared before the council for being hired as the city's building inspector /official. Mr. Pederson advised council of his location and how his operation works as per telephone calls for inspection, he would collect 80% of the building permit fee, one -half of the building permit fee would be collected as a plan inspection fee. His associate is Edward Lebus. Floyd Laska made a motion to hire Gunnar Pederson dba Metropolitan Inspection Service as our city's building official for the balance of 1979, Leon L'Allier seconded it, motion carried. Mr. Pederson would take over as per the July permits and Mr. Mobley would be responsible for the January to June permits already issued. Meeting adjourned at 8940 pm. Re ct ully sub itted, u Pr char, Clerk i I I I Pursuant to due call and notice thereof, the City Council of the City of Centerville held their regular meeting on Wednesday, August 8, 1979 in the City Hall. Mayor Prachar called the meeting to order at 8:00 pm. Present were: L'Allier, Laska, Savela, Assistant Attorney Burke and Engineer Williams. Absent: Burque. Floyd Laska made a motion to accept the minutes of the July 25 meeting, Gary Savela seconded it, motion carried. PETITIONS AND COMPLAINTS: Discussion held on the culvert and other debris laying on the Peltier Lake Hills Addition property. Kids are playing in culvert and could get hurt. Development contract with Husnick /Granger was discussed. According to contract, all improvements were to be completed by July 1, 1979• Assistant Attorney Burke was directed to write Husnick and request his attendance at next meeting to extend the development contract to a later date and that there will be no additional building permits issued until the contract is taken care of. Mr. Krieger of Oak Hill Sand & Gravel was in attendance and discussion held on the ditch work to be done on Mill Road. If weather holds, Kreiger estimated the work to be done at an hourly rate of approximately $40. and would take 8 -16 hours, cost would be determined if fill dirt could be used off of Lot 4, Block 2, Peterson's Old Homestead Addition. Mayor was to check with realtor concerning Lot 4. Also discussion on the concrete slab work to be done on two manholes on Mill Road at a cost of approximately $1,000. Council viewed the Brian Drive change order work to be done before meeting and Leon L'Allier made a motion to extend the tee on Brian Drive about 75' to make it more feasible, cost approximately $1,000., Floyd Laska seconded it, motion carried. Discussion held on amendment to Ordinance #10 relating to ditches on city streets. Leon L'Allier made a motion to adopt amendment to Ordinance #10, Floyd Laska seconded it, motion carried. Copy of amendment to Ordinance #10 is attached to and made a part of these minutes. Mary Jane Johnson realtor, representing Russel Ritter appeared before council for discussion of problem between Ritter and Mr. and Mrs. Harold Leibel. Preliminary plat of Clearwater Creek Estates was presented to council. It had previously been presented to P & Z with no additions or corrections. Park fee was discussed and developer wishes to pay 10% of subdivision land value which in this case is $4,000. or $160. per lot. Floyd Laska made a motion to approve preliminary plat of Clearwater Creek Estates, contingent on Rice Creek Watershed approval, Leon L'Allier seconded it, motion carried. page two - City Council meeting minutes - August 8, 1979 Charlotte Peterson had appeared before P & Z on August 7 with request for variance on lots she owns in Centerville. One variance involved Lot 13, Block 1, Peterson's Addition to Centerville and Lots 1 and 2, Block 2, Peterson's Addition to Centerville. The lots are 50 x 150 and by addition of more land to each parcel, they would be more feasible for selling of property. Floyd Laska made a motion to grant variance to Ordinance #15, Section 6, paragraph 10 on the following described property, legal description now reading Lot 13, Block 1, Peterson's Addition to Centerville and now reading: That part of the Southwest quarter of the Northeast quarter, Section 23, Township 31, Range 22, south of Peterson's Addition to Cenerville and North of the centerline of Clear- water Creek and west of the west line, if extended, of Lot 13, Block 1, Peterson's Addition to Centerville excepting an easement for ingress and egress, in, over and upon, that part of the Southeast Quarter of the Northeast Quarter (SE! of NE4) of Section 23, Township 31, Range 22, described as follows: Beginning at the SE corner of Lot 1, Block �, Peterson's Addition to Centerville thence South along the southerly extension of the East line of said Lot 1, to its intersection with the centerline of Clearwater Creek; thence east along said centerline of Clearwater Creek to its inter- section with the extension southerly of the west line of Lot 13, Block 1, Peterson's Addition to Centerville; thence North along the southerly extension of said West line to the SW corner of said Lot 13; thence west to the point of beginning and there terminating., Gary Savela seconded it, motion carried. Leon L'Allier made a motion to grant variance to Ordinance $15, Section 6, paragraph 10 on the following described property, legal description now reading Lots 1 and 2, Block 2, Peterson's Addition to Centerville and now reading: Lot 1 and 2 of Block 2, Peterson's Addition to Centerville, Minnesota, and that part of Lot 10, Auditor's Subdivision #48 revised Anoka County, Minnesota lying north and east of the centerline of Clearwater Creek, also known as County Ditch #47, and an easement for ingress and egress, in, over and u on that part of the so theast quarter of the Northeast quarter ( of NEJ) of Section 23, Township 31, Range 22, described as follows: Beginning at the SE corner of Lot 1, Block 2, Peterson's Add- ition to Centerville thence south along the southerly extension of the east line of said Lot 1, to its intersection with the centerline of Clearwater Creek; thence east along said center- line of Clearwater Creek to its intersection with the extension southerly of the west line of Lot 13, Block 1, Peterson's Addi- tion to Centerville; thence north along the southerly extension' of said west line to the SW corner of said Lot 13; thence west to the point of beginning and there terminating., Floyd Laska seconded it, motion carried. page three - City Council meeting minutes - August 8, 1979 Discussion was held on the City putting out bids for the planting of trees in connection with the shade tree program. Clerk was instructed to call three nurseries and request bid on the 50 trees planted and unplanted. Discussion held on the sample ordinance dealing with stock- piling and storage of elm logs. Tabled until further meeting. Budget meeting is set for Monday, September 17 at City Hall. Clerk read items of concern from the Fire department. Gary Savela made a motion to pay bill as per attached sheet, Leon L'Allier seconded it, motion carried. Floyd Laska made a motion to adjourn meeting, Leon L'Allier seconded it, motion carried. Meeting adjourned at 11:15 pm. R, e ully submi ted, I Lu achar, Clerk I Pursuant to due call and notice thereof, the City Council of Centerville met on Wednesday, August 22, 1979 for their regular meeting in the Centerville City Hall. Mayor Prachar called the meeting to order at 8:00 pm. Present were: Burque, L'Allier, Laska and Savela. Leon L'Allier made a motion to accept the minutes of the August 8th meeting, Gary Savela seconded it, motion carried. Mrs. Charlotte Peterson appeared before council concerning the conveyance of Lot 4, Block 2, Peterson's Old Homestead Addition to the City. Letter stating same is attached to and made a part of these minutes. Fran Burque made a motion for the city to accept Lot 4, Block 2, Peterson's Old Homestead Addition, Floyd Laska seconded it, motion carried. Fran Burque made a motion to accept letters from Mrs. Peterson concerning her contract with Eugene Wegleitner which are made a part of these minutes and also on file with the city clerk, Floyd Laska seconded it, motion carried. Arthur Raudio appeared before council for discussion on Center Oaks #2. Mr. Raudio will be requesting an extension on the final plat presentation of Center Oaks #2 and will be taken up at the September 12th meeting. Council discovered an error in letter to James Husnick from our city attorney. Clerk will advise Mr. Husnick to appear at the September 12th meeting for discussion on his development contract for Peltier Lake Hills Addition. Disucssion held on area at end of Sorel Street to use for communter parking for the people riding the bus to St. Paul. The council and engineer went over the assessment roll for the street restoration project. Senior citizen deferrments on the project were discussed. Leon L'Allier made a motion to include the assessment for street improvements in our senior citizen deferrment policy, Fran Burque seconded it, motion carried. Discussion held on the excavating and grading permits which are to be issued under Chapter 70 of the Uniform Building Code. Floyd Laska made a motion to adopt Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment, Leon L'Allier seconded it, motion carried. Copy of Resolution is attached to and made a part of these minutes. Gary Savela made a motion to adopt Resolution for Hearing on Proposed Assessment, Fran Burque seconded it, motion carried. Copy of Resolution is attached to and made a part of these minutes. Fran Burque made a motion to adjourn, Leon L'Allier seconded it, motion carried. Meeting adjourned at 10 :55 pm. Res ctf ly submi ted, Lu Prac ar, Clerk r August 7, 1979 - PLANNING AND ZONING MEETING PRESENT: Frank Zimny, Chairman ABSENT: Bob Lindgren Tom Wilharber Joe Perkowski Robert LaMotte Mel Dupre Jerry Sundberg Ray Murray Walt Prachar, liaison Frank Zimny called the meeting to order at 7:00 pm. Chairman read_ the public hearing notice for preliminary plat presentation of Clearwater Creek Estates. This consists of 25 lots, 13.66 acres description as follows: That part of the west 56 rods of the NW quarter of the NE quarter of Section 23, Township 31, Range 22, Anoka County, Minnesota, lying southerly of the south line of Block 3 and its easterly and westerly extensions, PETERSON'S OLD HOME- STEAD ADDITION, excepting the South 250' of the West 433' of the Ni of the NE-1 of Section 23, Township 31, Range 22, Anoka County, Minnesota. Discussion was held on the plat. Ray Murray made a motion to accept the preliminary plat of CLEARWATER CREEK ESTATES pending approval of Rice Creek Watershed, Mel Dupre seconded it, motion carried. Charlotte Peterson appeared before P & Z with request for variance on lots she owns in Centerville. One variance involved Lot 13, Block 1, Peterson's Addition to Centerville and Lots land 2, Block 2, Peterson's Addition to Centerville. The lots are 50 x 150 and by addition of more land to each parcel, they would be more feasible for selling of property. Bob LaMotte made a motion to grant variance to Ordinance #15, Section 6, paragraph 10 on above lots, Jerry Sundberg seconded it, motion carried. I Park Committee members Floyd Kruger and Leon L'Allier appeared before P & Z with recommendations from the Park Committee on property they are interested in acquiring for park land. The Park Committee members will be in attendance at next P & Z meeting when Mr. Short will be here to discuss park land acquirement. The meeting is set for September 4 at 7:00 pm. Ray Murray made a motion to adjourn, Jerry Sundberg seconded it, motion carried. Meeting adjourned at 9s25 pm. Resp tfully submitted, Lu Prac ar, Clerk 6 CIT OF CENTERVILLE 1694 Sorel Street, Centerville, Minnesota 55038 429 -3232 August 13, 1979 TO WHOM IT MAY CONCERN: RE: Contract between Charlotte Peterson and Eugene T. Wegleitner The contract between the two above named parties on PLAT 27823 - PARCEL 0760, conditions of which state that there shall be no change in the topography of said parcel. This is to instruct the City of Center- ville that Charlotte Peterson shall be notified at any time that Mr. Wegleitner applies for a permit to f do any grading, excavating, etc., that would change the topography of said parcel. 1 i I 7 CITY OF CENTERVILLE 1694 Sorel Street, Centerville, Minnesota 55038 429 -3232 August 13, 1979 TO WHOM IT MAY CONCERN: RE: Contract between Charlotte Peterson and Eugene T. Wegleitner The contract between the two above named parties on PLAT 27814 - PARCEL 8700, conditions of which state that there shall be no change in the topography of said parcel. This is to instruct the City of Center- ville that Charlotte Peterson shall be notified at any time that Mr. Wegleitner applies for a permit to do any grading, excavating, etc., that would change the topography of said parcel. 9 I I i PLANNING & ZONING MEETING - TUESDAY, SEPTCMBER 4, 1979 PRESENT: Frank Zimny, Chairman Bob LaMotte Bob Lindgren Jerry Sundberg Ray Murray Tom Wilharber Walt Prachar,liaison Bill Short, City Planner Floyd Kruger, Park Comm. representative ABSENT: Mel Dupre Joe Perkowski Mr. Short reviewed the Clearwater Creek Estates plat. Several items were mentioned: 1. Did not agree with location of the four lots on Main Street 2. Coordinate streets with Rehbein Estates 3. Soil problems within plat 4. No park land dedication within plat 5. Rezoning all except "exception" to residential Park plan for Centerville was discussed, small parks for children, large park for being considered City Park. Possibilities for park area at the end of Heritage Street and also sharing school property on a joint basis. Park Committee's recommendation was to look into the Heritage Street property for possible park site. P & Z consensus was to look into both sites. P & Z went over the Prkland Dedication Summary presented by Mr. Short. Mr. Short presented review on the land use chapter of the city plan. After much discussion on various land uses, the subject of duplexes, tri -plea, etc., was discussed. Ray Murray made a motion for the City Council to consider for purposes of discussion, their enforcement in cases of duplexes being restricted to lot size of 22,500 square feet or our equivalent of a lot and one -half, Jerry Sunderberg seconded it, motion carried. P & Z also recommended having a moratorium on the building of multiple dwellings of 3 or more family units for one year. I Flood Plain ordinance was discussed. Jerry Sundberg made a motion to go along with the HUD minimum level requirement, Bob LaMotte seconded it, motion carried. P & Z will hold special meeting on Tuesday, September 18 at 7:00 pm at City Hall. Mr. Short will be in attendance at the October 2nd P & Z meeting. Jerry Sundberg made a motion to adjourn, Robert Lindgren seconded it, motion carried. Meeting adjourned at 10:25 pm. ; Re,5 p ctfully submitted, u char 0 CD CD O ADOPTED _ 611 212 01 3 GOAL STEP Council Star Consultant Other Time Frame 1 Commercial/Industrial Development. Endeavor to make contact annually with major commercial and industrial businesses to determine plans for expansion A and relocation XX XX Aug -Sept. 2013 Maintain and update a listing of available commercial and industrial building sites. Where appropriate, facilitate listing available sites on MNPro and MetroMSP development B websites. XX July 1, 2013 Participate with Anoka County cities in business and C industrial development meetings. XX Respond quickly to inquiries of commercial or industrial D prospects. XX Consider use of any available resource such as securing outside grants and tax increment financing (TIF) and tax abatement to induce new commercial and industrial E development. XX 2 Sale of surplus city property. A Secure council action to designate available sites. XX May 31, 2013 B Secure an appraisal of available parcels when appropriate. XX June 30, 2013 Select a realtor to market the properties that are deemed C available for sale. XX August 1, 2013 ADOPTED _ 611 212 01 3 GOAL STEP Council Statr Consultant Other Time Frame 3 Collabora with neighboring communities. Continue monthly meetings with neighboring cities to build A relationships conducive to collaboration. XX Continue semi - annual meetings of council representatives to coordinate collaboration efforts and provide liaison with full B city council of each city. XX August 31 2013 Continue working with neighboring cities to study the C feasibility of a joint water and/or sewer utility. XX XX Consider any proposal for collaboration which could improve D efficiency or save costs. XX XX