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2015-04-22 CC Packet
Ctentervil-l-e CITY OF CENTERVILLE COUNCIL MEETING AGENDA Wednesday, April 22, 2015 — Set Agenda =Red 6:15 p.m. or shortly thereafter CITY OF CENTERVILLE BOARD OF REVIEW & EQUALIZATION (6:15 P.M.) (Mr. Ken Tolzmann) 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 6:15 p.m. COUNCIL MEETING (Following Board of Review & Equalization) I. CALL TO ORDER 1. Roll Call II. PLEDGE OF ALLEGIANCE III. APPOINTMENTS/PRESENTATION 1. Mr. Kevin Knopik,ABDO, Eick& Meyers, Presentation of 2014 Audit ***PLEASE BRING YOUR COPIES*** 2. Sergeant Pat Aldrich, Centennial Lakes Police Department Presentation of 2014 Annual Report IV. PUBLIC INPUT V. APPROVAL OF AGENDA VI. APPROVAL OF MINUTES 1. April 8,2015 City Council Meeting Minutes (Pages 1-7) VII. CONSENT AGENDA 1. City of Centerville April 9, 2015 through April 22,2015 Claims (Check#29398-2929406)w/Voided Check#29275 (Page 8) 2. Centennial Lakes Police Department Claims through April 10,2015 (Check #10334-10348) (Page 9) VIII. OLD BUSINESS K. NEW BUSINESS 1. Lou Suski, Gaughan Companies, Purchase Agreement a. Purchase Agreement for Lot @ 7212 Mill Road (Pages 10-19) b. Update- 1691/1695 Main Street Properties 2. Approval of the Annual Audit-2014 ***PLEASE BRING YOUR COPIES*** 3. Discussion on Marketing City Properties & Economic Development Authority (Pages 20-25) 4. Discussion on Six(6) Month Review of City Administrator 5. Res. #15-OXX-A Resolution Authorizing Warranty Deed Conveying Parcel(s) 1, 2,3, 12A, 12B, 12C and a Permanent Easement for Drainage,Utility, Sloping, Snow Storage and Storm Sewer Purposes Over, Under and Across Parcel(s) 12PE- 1, 12PE-2 and 12PE-3, Anoka County Highway Right-of-Way, Plat No 89, According to the Map or Plat Thereof on File and of Record in the Office of the Anoka County Recorder and Registrar of Titles (Pages 26-33) 6. Consideration of Approving Minnesota Department of Health Clean Water Fund -Seal Wells on Private Property within City's DWSMA (Royal Meadows Subdivision)- 16 Wells with a Total of 20 to Complete (Pages 34-44) X. COUNCIL & ADMINISTRATION ANNOUNCEMENTS 1. Administrator Report 2. Council & Staff Reports XI. ADJOURNMENT *REMINDERS** Planning& Zoning Commission Meeting-May 5, 2015. 6:30 p.m. (Council Chambers) Parks & Recreation Committee Meeting-May 6. 2015. 6:30 p.m. (Council Chambers) City Council Meeting- May 13. 2015. 6:30 p.m. (Council Chambers) City Council Meeting- May 27, 2015, 6:30 p.m. (Council Chambers) Local Government Officials Meeting - April 29. 2015, 6:00 p.m. (Bunker hills Activity Center. 550 Bunker Lake Blvd. N.W., Andover) Hydrant Flushing -May 11-15, 2015 2015 City Wide Garage Sale Days -June 12 & 13, 2015 2015 Clean lip Day -June 20, 2015, LaMotte Park, 6970 LaMotte Drive, 8:00- 12:00 (noon) Fete des Lacs 5. 8K's & Kids Fun Run -July 25, 2015 (Around Centerville Lake and Out and Back) Out Run Homelessness, 5, 8K's & Kids Run/Walk- September 19, 2015 (Around Centerville Lake and Out and Back) CHS Diamond in the Rough 5K& l OK Run/Walk-September 26, 2015 (Around Centerville Lake and Out and Back) Important Information Regarding Assessment and Classification of Property This may affect your 2016 property tax payments. Notice is hereby given that the Board of Appeal and Equalization for the City of Centerville shall meet on April 22, 2015, 6:15 p.m., at Centerville City Hall. The purpose of this meeting is to determine whether taxable property in the jurisdiction has been properly valued and classified by the assessor, and to determine whether corrections need to be made. If you believe the value or classification of your property is incorrect, please contact your assessor's office to discuss your concerns. If you are still not satisfied with the valuation or classification after discussing it with your assessor, you may appear before the local board of appeal and equalization. The board shall review the valuation, classification, or both if necessary, and shall correct it as needed. Generally, an appearance before your local board of appeal and equalization is required by law before an appeal can be taken to the county board of appeal and equalization. Given under my hand this day of 2015. Clerk of City of Centerville Kenneth A. Tolzmann, SAMA Centerville City Assessor TO: City of Centerville Councilmember's and Residents Attn: Mr. Mike Ericson, City Administrator FROM: Kenneth A. Tolzmann, SAMA#1939 Centerville City Assessor DATE: April 9, 2015 RE: 2015 Pay 2016 Assessment Report Introduction I have prepared this 2015 Assessment Report for use by the City Council and Residents. The Assessment Report includes general information about both the appeals and assessment process, as well as specific information regarding this 2015 assessment. Minnesota Statutes establish specific requirements for the assessment of property. The law requires that all real property be valued at market value, which is defined as the usual or most likely selling price as of January 2, 2015. The estimated market values established for this 2015 assessment are based upon actual real estate market trends of City of Centerville properties taking place from October 1 2013 through i September 30, 2014. From these trends our mass appraisal system is used to determine individual property values. Property owners who have questions or concerns regarding the market value set for their property are asked to contact me prior to this meeting. This allows me the opportunity to answer any questions they might have. I have found that a large number of property owner concerns can be resolved by discussion. If I am unable to resolve a property owner's concerns regarding their market value, the appeal can be brought to this local Board of Appeal and Equalization. The 2015 Assessment Summary As previously mentioned, State Statutes require all real property within the City of Centerville to be valued at market value as of the January 2nd assessment date. The 2014 assessment has met all assessment standards set by the State of Minnesota. Statistically,based upon the 47 qualified sales within the City during this sales period, and after value adjustments made accordingly by zone, the final result was an assessment that qualifies as "excellent" in the eyes of the Minnesota Dept. of Revenue with a median of 93.30 and a coefficient of dispersion of 6.52, and a Price Related Differential of.99. Changes made to this 2015 assessment from the 2014 assessment were as follows: All residential buildings were adjusted Countywide based on size/quality(+3-7%). Adjustments to Centerville City land rates were: Zone 3 (northside average) +15% Zone 4 (acreage sites)—+10% Zone 5 (lakeshore) +10% Zone 6 (southside avg) -5% Zone 7 (above avg) -10% Zone 8 (average townhomes) +48% Zone 9 (above avg townhomes) -43% *After removal of any remaining obsolescence. With respect to commercial/industrial parcels, there were no changes made to the land schedules. In summary, we saw the overall estimated market value of the City increase by 3.8% for this 2015 assessment. This is in addition to the 12.8%increase in the City's tax base we observed for last year. Preliminary indications are, that we have seen the worst of the fall in real estate values here in Centerville. This turnaround in market values in the City is due to a further reduction in the number of bank owned properties for sale, as well as the continued rebound of the real estate market metro wide for this past year. For 2015 there were only 8 bank/foreclosure sales in the City, a reduction from 18 last year. Conclusion As your City Assessor, it is my priority to represent your community with utmost dignity and respect, and to make every property owner feel as though they are being heard. It is my hope that through explanation, and discussion, there can be a better understanding. If there are any questions from members of the City Council or City Staff, or City Residents, please do not hesitate to call me. I am available to City residents always during normal business hours and by appointment on evenings and weekends. In closing, I would like to take this opportunity to thank the City of Centerville for allowing me the privilege of serving as your City Assessor. I can assure you that I take the responsibilities of those duties most seriously. If you or anyone has questions relating to property tax assessment, I would be most pleased to discuss these issues with you. You can reach me at my office at (651) 464- 4862 or my cell at (612) 865-2149. Sincerely, Kenneth A. Tolzmann, SAMA#1939 Centerville City Assessor City of Centerville Board of ualization Meeting Eq Centerville, Minnesota Centervilt-te 1880`ifain A reet.Centnitille,:Af l"c5(I i8 651-429-3232 or Frz16 1-429-8629 Kmzx*qyA Ta SMM Cmih m&My.4SSOSSW 1 City of Centerville Table of Contents AssessmentCalendar........................................................................................................................3 The2015 Assessment........................................................................................................................4 Quintile.................................................................................................................................................5 Reassessment....................................................................................................................................6 MarketValue.......................................:...............................................................................................6 Authority of the Local Board of Appeal and Equalization..................................................................7 MarketValues...................................................................................................................................10 2014 Market Value Comparison......................................................................................................11 Residential Appraisal System...........................................................................................................12 SalesStudies ....................................................................................................................................12 Sales Statistics Defined....................................................................................................................13 CurrentSales Study Statistics..........................................................................................................14 2015 Anoka County Ratio Study......................................................................................................14 Residential Tax Changes Examined................................................................................................15 2015 Real Estate Tax Information ...................................................................................................16 AppealsProcedure...........................................................................................................................17 SampleMarket Value Notice............................................................................................................19 SampleProperty Tax Statement......................................................................................................20 2014 Twin Cities Residential Real Estate Report...........................................................................23 2 City of Centerville 2015 Assessment Calendar January 2 2015 Market Values for Property Established February 1 Final Day to Deliver Assessment Records to County February 1 Final Day to File for an Exemption from Taxation March 1 Final day to file for 1 b with Commissioner of Revenue March 16 2015 Valuation Notices Mailed April 13 Local Board of Appeal and Equalization April 30 Final Day to File a Tax Court Petition for 2014 Assessment May 15 First Half Payable 2015 Taxes Due May 29 Final Date for Manufactured homes assessed as personal property to establish homestead May 31 State Board of Equalization June 15 County Board of Appeal and Equalization(6:00 PM) July 1 2015 Assessment Finalized July 1 Date by which taxable property becomes exempt August 15 Final Day to File for 2014 Property Tax Refund August 31 Final Day to Pay the First Half Manufactured Home Taxes September 1 2015 Abstract to the Department of Revenue October 15 Second Half Pay 2015 Taxes Due November 15 Anticipated Day to mail Pay 2016 Proposed Tax Notices December 1 Last Day to Establish Homestead for pay 2016 December 15 Final Day to File Homestead Application for pay 2016 3 City of Centerville The 2015 Assessment The 2015 assessment should be a reflection of the 2014 market conditions. Sales of property are constantly analyzed to chart the activity of the market place. The Assessing staff does not create value; they only measure its movement. Assessing property values equitably is part science, part judgment and part communication skill. Training as an assessor cannot tell us how to find the "perfect' value of a property, but it does help us consistently produce the same estimate of value for identical properties. That after all, is the working definition of equalization. As of January 2, 2015, there were 1,687 taxable parcel/accounts in the City. That is essentially the same as from 2014. This total includes: • 1,408 residential parcels • 96 non-taxable parcels • 83 commercial and industrial parcels • 2 apartment/nursing home/man. housing parcels • 0 manufactured home accounts • 1 personal property account • 0 railroad parcels • 8 agricultural parcels • 0 utility parcels Current state law mandates that all property must be re-assessed each year and physically reviewed once every five years. We also inspect all properties with new construction each year. During 20141 reviewed nearly 343 existing properties.. 4 City of Centerville For the 2015 Assessment, parcels located in Section 23 in the following quarter sections were reviewed by an on site inspection. Sec 23 QQ23 Sec 23 QQ24 Sec 23 QQ31 Sec 23 QQ32 Sec 23 QQ33 Sec 23 0034 Sec 23 QQ43 For the 2016 Assessment,all Townhomes&Commercial parcels will be inspected and reviewed. 5 City of Centerville Reassessment State Statute reads: "All real property subject to taxation shall be listed and reassessed every year with reference to its value on January 2nd preceding the assessment." This has been done, and the owners of property in Centerville have been notified of any value change. Minnesota Statute 273.11 reads: "All property shall be valued at its market value." It further states that "In estimating and determining such value, the Assessor shall not adopt a lower or different standard of value because the same is to serve as a basis for taxation, nor shall the assessor adopt as a criterion of value the price for which such property would sell at auction or at a forced sale, or in the aggregate with all the property in the town or district, but the assessor shall value each article or description of property by itself, and at such sum or price as the assessor believes the same to be fairly worth in money." The Statute says all property shall be valued at market value, not may be valued at market value. This means that no factors other than market factors should affect the Assessor's value and the subsequent action by the Board of Equalization. Market Value Market value has been defined many different ways. One way used by many appraisers is the following: The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by any undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated: (2) both parties are well informed or well advised, and acting in what they consider their own best interests; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 6 City of Centerville Authority of the Local Board of Equalization Assessments of property are made to provide the means for the measuring of the relative share of each taxpayer in the meeting of the costs of local government. It is the duty of the Assessor to assess all real and personal property except that which is exempt or taxable under some special method of taxation. If the burden of local government is to be fairly and justly shared among the owners of all property of value, it is necessary that all taxable property be listed on the tax rolls and that all assessments be made accurately. Whenever any property that should be assessed is omitted from the tax rolls, an unfair burden falls upon the owners of all property that has been assessed. If any property is undervalued in relation to the other property on the assessment record, the owners of the other property are called upon automatically to assume part of the tax burden that should be borne by the undervalued property. Fairness and justice in property taxation demands both completeness and equality in assessment. Minnesota Statutes Section 274.01 provides that the council of each city shall be or appoint a Board of Appeal and Equalization. The charter of certain cities provides for the establishment of a Board of Equalization. The provisions of Section 274.01 and this regulation apply to all Boards of Appeal or Boards of Equalization. The 2003 Legislature enacted State Statute 274.014 which requires that there be at least one member at each meeting of a Local Board of Appeal and Equalization (beginning with the 2006 local boards) who has attended an appeals and equalization course developed or approved by the Commissioner of Revenue within the last four years. (The member must attend the course by no later than January 1, 2006.) Mayor Mary Capra as well as Councilmembers Ben Fehrenbacher and Jeff Paar, have met this requirement for the City of Centerville. Section 274.01 states the county assessor shall fix a date for each Board of Appeal and Equalization to meet for the purpose of reviewing the assessment of property in its respective town or city. The county assessor is required to serve written notice to the clerk of each of such bodies on or before February 15th of each year. These meetings are required to be held between April 1 st and May 31 st; and the clerk of the Board of Appeal and Equalization is required to give published and posted notice at least ten days before the date set for the first meeting. The Board of Appeal and Equalization of any city, unless a longer period is approved by the Commissioner of Revenue, must complete its work and adjourn within twenty days (20) from the time of convening specified in the notice of the clerk. No action taken subsequent to such date shall be valid. A request for additional time in order to complete the work of the Board of Appeal and Equalization must be addressed to the Commissioner of Revenue in writing. The Commissioner's approval is necessary to legalize any procedure subsequent to the expiration of the twenty-day period. The Commissioner of 7 City of Centerville Revenue will not, however, extend the time for local Boards of Appeal and Equalization to meet beyond the time when the County Board of Equalization meets, which is the final two weeks of June. The authority of the local Board extends over the individual assessments of real and personal property. The Board does not have the power to increase or decrease by percentage all of the assessments in the district of a given class of property. Changes in aggregate assessments by classes are made by the County Board of Equalization. Although the Local Board of Appeal and Equalization has the authority to increase or reduce individual assessments, the total of such adjustments must not reduce the aggregate assessment made by the Assessor by more than one percent of said aggregate assessment. If the total of such adjustments does lower the aggregate assessment made by the Assessor by more than one percent, none of the adjustments will be allowed. This limitation does not apply, however, to the correction of clerical errors or to the removal of duplicate assessments. The Local Board of Appeal and Equalization does not have the authority in any year to reopen former assessments on which taxes are due and payable. The Board considers only the assessments that are in process in the current year. Adjustment can be made only by the process of abatement or by legal action. In reviewing the individual assessments, the Board may find instances of undervaluation. Before the Board can raise the market value of property it must notify the owner. The law does not prescribe any particular form of notice except that the person whose property is to be increased in value must be notified of the intent of the Board to make the increase. The Local Board of Appeal and Equalization meetings assure a property owner an opportunity to contest any other matter relating to the taxability of their property. The Board is required to review the matter and make any corrections that it deems just. When a Local Board of Appeal and Equalization convenes, it is necessary that a majority of the members be in attendance in order that any valid action may be taken. The local assessor is required by law to be present with his/her assessment books and papers. He/she is required also to take part in the proceedings but has no vote. In addition to the local assessor, the county assessor or one of his/her assistants is required to attend. The Board should proceed immediately to review the assessments of property. The Board should ask the local assessor and county assessor to present any tables that have been prepared, making comparisons of the current assessments in the district. The county assessor is required to have maps and tables relating particularly to land values for the guidance of Boards of Appeal and Equalization. Comparisons should be presented of assessments of types of property with previous years and with other assessment districts in the same county. It is the primary duty of each Board of Appeal and Equalization to examine the assessment record to see that all taxable property in the assessment district has been properly placed upon the list and valued by the assessor. In case any property, either real or personal, has been omitted; the Board has the duty of making the assessment. 8 City of Centerville The complaints and objections of persons who feel aggrieved with any assessments for the current year should be considered very carefully by the Board. Such assessments must be reviewed in detail and the Board has the authority to make corrections it deems to be just. The Board may recess from day to day until all cases have been heard. If complaints are received after the adjournment of the Board of Appeal and Equalization they must be handled on the staff level; as a property owner cannot appear before a higher board unless he or she has first appeared at the lower board levels. Pursuant to Minnesota Statute 274.01: The Board may not make an individual market value adjustment or classification change that would benefit the property in cases where the owner or other person having control over the property will not permit the assessor to inspect the property and the interior of any buildings or structures. A non-resident may file written objections to his/her assessment with the county assessor prior to the meeting of the Board of Appeal and Equalization. Such objections must be presented to the Board for consideration while it is in session. Before adjourning, the Board of Appeal and Equalization should cause the record of the official proceedings to be prepared. The law requires that the proceedings be listed on a separate form which is appended to the assessment book. The assessments of omitted property must be listed in detail and all assessments that have been increased or decreased should be shown as prescribed in the form. After the proceedings have been completed, the record should be signed and dated by the members of the Board of Appeal and Equalization. It is the duty of the county assessor to enter changes by Boards of Appeal and Equalization in the assessment book of each district. The Local Board of Appeal and Equalization has the opportunity of making a great contribution to the equality of all assessments of property in a district. No other agency in the assessment process has the knowledge of the property within a district that is possessed jointly by the individual members of a Board of Appeal and Equalization. The County or State Board of Equalization cannot give the detailed attention to individual assessments that is possible in the session of the Local Board. The faithful performance of duty by the Local Board of Appeal and Equalization will make a direct contribution to the attainment of equality in meeting the costs of providing the essential services of local government. The 2015 assessment should be a reflection of the 2014 market conditions. Sales of property are constantly analyzed to chart the activity of the market place. 9 City of Centerville Market Values After thorough studies of the sales in the market place are conducted, we establish the assessed value of all real property. During the 2014 study period, we recorded 59 sales, of which we considered 42 to be "arms-length" sales. There were only 8 bank/foreclosure sales in Centerville during 2014. This was a significant reduction from the 18 bank/foreclosure sales last year.. In accordance with the results of these sales studies, downward adjustments were made to all areas of the city with certain styles and grades of homes having larger decreases than others. This will more properly reflect current market trends. According to the Minneapolis Area Association of Realtors, the average home sales price in Centerville dropped by 25.6% % between 2013 and 2014. In my opinion, this is misleading, given a 17% increase they reported for the previous year. If I look at the average over the previous three years, I see an increase of 5.5% in the City. This is a direct result of the continued reduction of the impact bank owned home sales have in the City. The 2015 assessment that is up for your review has a total unaudited assessed value of $307,796,930. It reflects an approximate valuation increase of 3.8%% compared to the 2014 assessment of 296,495,221 which was a12.8% increase over 2013. 10 City of Centerville 2015 Market Value Comparison 2015 ASSESSMENT PERCENT OF TOTAL MARKET VALUE APARTMENTS .2% COMMERCIAL 3.7% ®APARTMENTS ❑COMMERCIAL ❑INDUSTRIAL ❑RESIDENTIAL RESIDENTIAL 96.1% 11 City of Centerville Residential Appraisal System Per State Statute, each property must be physically inspected and individually appraised once every five years. For this individual appraisal, or in the event of an assessed value appeal, we use two standard appraisal methods to determine and verify the estimated market value of our residential properties: 1. First, an appraiser inspects each property to verify data. If we are unable to view the interior of a home on the first visit, a notice is left requesting a return telephone call from the owner to schedule this inspection. Interior inspections are necessary to confirm our data on the plans and specifications of new homes and to determine depreciation factors in older homes. 2. To calculate the estimated market value from the property data we use a Computer Assisted Mass Appraisal (CAMA) system based on a reconstruction less depreciation No method of appraisal. The cost variables and ®® land schedules are developed through an an analysis of stratified sales within the city. This method uses the "Principle of Substitution" and calculates what a buyer would have to pay to replace each home today less age dependent depreciation. 3. A comparative market analysis is used to verify these estimates. The properties used for these studies are those that most recently have sold and by computer analysis, are most comparable to the subject property taking into consideration construction quality, location, size, style, etc. The main point in doing a market analysis is to make sure that you are comparing "apples with apples". This will make the comparable properties "equivalent to" the subject property and establish a probable sale price of the subject. These three steps give us the information to verify our assessed value or to adjust it if necessary. Sales Studies According to State Law, it is the assessor's job to appraise all real property at market value for property tax purposes. As a method of checks and balances, the Department of Revenue uses statistics and ratios relating to assessed market value and current sale prices to confirm that the law is upheld. Assessors use similar statistics and sales ratios to identify market trends in developing market values. 12 City of Centerville A sales ratio is obtained by comparing the assessor's market value to the adjusted sales pric each property sold in an arms-length transaction within a fixed period. An "arms-length" transaction is one that is generated after a property has had sufficient time on the open market, between both an informed buyer and seller with no undue pressure on either party. The median or mid-point ratios are calculated and stratified by property classification. r 100% I E The only perfect assessment would have a 100% ratio for every sale. This is of course, is impossible. Because we are not able to predict major events that may cause significant shifts in the market, the state allows a 15% margin of error. The Department of Revenue adjusts the median ratio by the percentage of growth from the previous year's abstract value of the same class of property within the same jurisdiction. This adjusted median ratio must fall between 90%and 105%. Any deviation will warrant a state mandated jurisdiction-wide adjustment of at least 5%. To avoid this increase,the Anoka County Assessor requests a median sales ratio of 94.5%. Countywide, we have the ability to stratify the ratios by style, age, quality of construction, size, land zone and value. This assists us in appraising all of our properties closer to our goal ratio. Sales Statistics Defined In addition to the median ratio, we have the ability to develop other statistics to test the accuracy of the assessment. Some of these are used at the state and county level also. The primary statistics used are: Aggregate Ratio: This is the total market value of all sale properties divided by the total sale prices. It, along with the mean ratio, gives an idea of our assessment level. Within the city, we constantly try to achieve an aggregate and mean ratio of 94% to 95% to give us a margin to account for a fluctuating market and still maintain ratios within state mandated guidelines. Mean Ratio: The mean is the average ratio. We use this ratio not only to watch our assessment level, but also to analyze property values by development, type of dwelling and value range. These studies enable us to track market trends in neighborhoods, popular housing types and classes of property. Coefficient of Dispersion (COD): The COD measures the accuracy of the assessment. It is possible to have a median ratio of 93% with 300 sales, two ratios at 93%, 149 at 80% and 149 at 103%. Although this is an excellent median ratio, there is obviously a great inequality in the assessment. The COD indicates the spread of the ratios from the mean or median ratio. 13 City of Centerville The goal of a good assessment is a COD of 10 to 20. A COD under 10 is considered excellent and anything over 20 will mean an assessment review by the Department of Revenue. Price Related Differential (PRD): This statistic measures the equality between the assessment of high and low valued property. A PRD over 100 indicates a regressive assessment, or the lower valued properties are assessed at a greater degree than the higher. A PRD of less than 100 indicates a progressive assessment or the opposite. A perfect PRD of 100 means that both higher and lower valued properties are assessed exactly equal. Current Sales Study Statistics The following statistics are based upon ratios calculated using 2013 pay 2014 market values and October 2013 - September 2014 sales. These are the ratios that our office uses for citywide equalization, checking assessment accuracy, and predicting trends in the market. Statistic 2015 Median Ratio: 93.30 COD: 6.52 PRD: .99 14 City of Centerville Residential Tax Changes Examined Although the Assessor's Office is considered by many to be the primary reason for any property tax changes, there are actually several elements that can contribute to this change, including, but not limited to: • Changes in the approved levies of individual taxing jurisdictions. • Bond referendum approvals. • Tax rate changes approved by the State Legislature. • Changes to the homestead credit, educational credits, agricultural aid, special programs(including "This Old House", limitations on increases in value)approved by the State Legislature. • Changes in assessed market value. • Changes in the classification (use)of the property. A combination of any of these factors can bring about a change in the annual property tax bill. 2015 Centerville Residential Ratio by Zone Zone/Code Neighborhood Desc. #Sales Median CE01 AGRICULTURAL 0 na CE02 DOWNTOWN CENTERVILLE 1 94.71 CE03 NORTHSIDE AVERGE 17 93.34 CE04 2.5 TP 10 ACRE RES 0 na CE05 LAKESHORE 0 na CE06 SOUTHSIDE AVERAGE 1 98.26 CE07 ABOVE AVERAGE RES 14 93.07 CE08 AVERAGE TOWNHOMES 5 93.22 CE09 ABOVE AVERAGE TOWNHOMES 4 93.15 ALL ZONES 42 93.30 6.52COD 15 City of Centerville 2015 Real Estate Tax Information The 2015 real estate tax bills were sent out around the middle of March. A brief review of the tax procedure is provided. Discussion The real estate tax is an ad valorem tax; that is, a tax levied based on the value of the property. The calculation of the tax requires two variables, a tax capacity value and the district tax capacity rate applicable to each individual property. Tax Capacity Tax capacity value is a percentage of the taxable market value of a property. State law sets the percent. Determination of tax capacity values have historically changed over the years although the payable 2015 are mostly unchanged from 2014. For the taxes payable in 2015 the rates are as follows: Tax capacity value for residential homestead property is determined as follows: Res. Homestead(1A) Taxable Market Value First$500,000 @ 1.00% Taxable Market Value Over$500,000 @ 1.25% Tax capacity value for rental residential property is determined as follows: One unit(41361) Taxable Market Value First$500,000 @ 1.00% Taxable Market Value Over$500,000 @ 1.25% Two to three unit s(4131) Taxable Market Value All @ 1.25% Apts 4+ units (4A) Estimated Market Value All @ 1.25% Low Inc. Rental Housing Estimated Market Value All @ .75% Tax capacity value for commercial/industrial property is determined as follows: Commercial/Industrial (3A) Estimated Market Value First$150,000 @ 1.50% Over$150,000 @ 2.00% 16 City of Centerville Appeals Procedure Each spring Anoka County sends out a property tax bill. Three factors that affect the tax bill are: 1. The amount your local governments(town, city, county, etc.)spend to provide services to your community, 2. the taxable market value of your property, and 3. the classification of your property(how it is used). The assessor determines the final two factors. You may appeal the value or classification of your property. Informal Appeal 0 Property owners are encouraged to call the appraiser or assessor whenever they have questions or concerns about their market value, classification of the property, or the assessment process. 0 Almost all questions can be answered during this informal appeal process. 0 When taxpayers call questioning their market value, every effort is made to make an appointment to inspect properties that were not previously inspected. 0 If the data on the property is correct, the appraiser is able to show the property owner other sales in the market that support the estimated market value. 0 If errors are found during the inspection, or other factors indicate a value reduction is warranted, the appraiser can easily make the changes at this time. Local Board of Equalization 0 The Local Board of Equalization includes the mayor and city council members. 0 The Board meets during April and early May. 0 Taxpayers can make their appeal in person or by letter. 0 The assessor isresent to answer any y questions and present evidence supporting their value. County Board of Appeal and Equalization In order to appeal to the County Board of Appeal and Equalization, a property owner must first appeal to the Local Board of Appeal and Equalization. The County Board of Appeal and Equalization follows the Local Board of Appeal and Equalization in the assessment appeals process. Their role is to ensure equalization among individual assessment districts and classes of property. 17 City of Centerville The board meets during the Final ten working days in June. In 2015 it will commence on June 15"'at 6:00 pm. A taxpayer must first appeal to the local board before appealing to the county board. Decisions of the County Board of Appeal and Equalization can be appealed to tax court. Minnesota Tax Court The Tax Court has statewide jurisdiction. Except for an appeal to the Supreme Court, the Tax Court shall be the sole, exclusive and final authority for the hearing and determination of all questions of law and fact arising under the tax laws of the state. There are two divisions of tax court: the small claims division and the regular division. The Small Claims Division of the Tax Court only hears appeals involving one of the following situations: • The assessor's estimated market value of the property is <$300,000 • The entire parcel is classified as a residential homestead and the parcel contains no more than one dwelling unit. • The entire property is classified as an agricultural homestead. • Appeals involving the denial of a current year application for homestead classification of the property. The proceedings of the small claims division are less formal and property owners often represent themselves. There is no official record of the proceedings. Decisions made by the small claims division are final and cannot be appealed further. Small claims decisions do not set precedent. The Regular Division of the Tax Court will hear all appeals, including those within the jurisdiction of the small claims division. Decisions made here can be appealed to a higher court. The principal office for the Tax Court is located in St. Paul. However, the Tax Court is a circuit court and can hold hearings at any other place within the state so that taxpayers may appear with as little inconvenience and expense to the taxpayer as possible. Appeals of property located in Anoka County are heard at the Anoka County Courthouse,with trials scheduled to begin on Thursdays. Three judges make up the Tax Court. Each may hear and decide cases independently. However, a case may be tried before the entire court under certain circumstances. The petitioner must file in tax court on or before April 30 of the year in which the tax is payable. is City of Centerville Sample Notice Notice of Valuation and Classification-County of Anoka +noo •This is not a bill- Property Records and Taxation This form is to notify you of the market value and classdieabon of your property Michael R Sutherland for assessment year 2011 The property taxes you will pay in 2012 Anoka County Assessor will be based on this valuation and classification 2100 3rd Avenue Anoka,MN 55303.2281 (763)323-5475 waw co anoka mn us FIELDS ERIC 8 BRIDGETTE 19035 FILLMORE ST NE EAST BETHEL MN 55011-9283 If you believe your valuation and 3�rope�2y.f t�yr�tati it(Ieg�tt:+ api aiuSr4i prdpet#Yt Cfr necessary to are owectyo L tits not THE N 165 FT OF E 183 FT OF NE 114 OF NW?A OF SEG 19 TWF 31 RGE 3(AS MEAS ALG E&'N attend nylo eontaefting,assessor of LINES THEREOF EX RD,SUBJ TO EASE OF REG attendanylsterfineettng. 384109TH AVE NE lffbeprop"mbilit"hDri is not BLAINE MN 55434-0000 Oy- ,cotrectyou dbaWwwih the values` oryou-havat>thsrc""tions about Property I.D.: 19.81.23 21.OD02 ft notice,pfeast contact your Pr "Ay i".kSsZ08110n assesSo*W to asZM aay ?` , -questions or4ptimms Often your Assessment Year 2010 Assessment Year 2011 .aSsuastan barasolved at thrs level (For Taxes Payable in 2011) (For Taxes Payable in 2012) Comm/Ind Comm/Ind If your grestionaor concerns are not msolved,more format appeal opRons are evidirble PfeaseTend the back of Ns nofice for important Iitfercnation about4w formal appeafprooess. Property information is available forbrf �Yuad :" viewing Monday-Friday,8 00 a m - Assessment Year 2010 Assessment Year 2011 4 30 p m at the Anoka County (For Taxes Payable in 2011) (For Taxes Payable in 2012) Government Center Room 165 Public Estimated Market Value $169,700 $163,400 Research Area,2100 3rd Ave, Anoka or online at www co anoka min us Taxable Market Value $169,700 $163.400 April 18,2011 •,.700 PM M •= ' ,.. ,.., .::3. ,"'. : .;, °;;.' ,:. ',tz� Blame Gly Hall To appea,please call your Local Assessor at 763-323-5496 or 763-323-5491 10801 Town Square Dr Blaine MN 55449 POW June 13,2011 6 00 PM An appointment must be made in advance to appear before the board To Anoka County Government Center schedule an appointment please call the County Assessor's Office at County Boardroom-Room 705 763-323-5475 2100 3rd Ave Anoka MN 55303 Please read the back of this notice for important appeal information. 19 City of Centerville Anoka Count' Larr Vd Dallcn Dilnum v1.u)aeet =:P:R0PF1RTY TAY APu,pert2 Records.mil Tas.,ttonMENT 2t011 3"Avcnnc AL ANOKA 4nul(763)- ;;Zoe_ _�1 COUNTY (�F3t oka nio 1st l�co ano}.a tyro us 0000,; PROPERTY TAX V'ALU'ES B CLASSIFICATION Taxpa)er(s)t Taxes Po)able Year: 20102011 1 sumatnl MArkel%'„lue Ib9 q>[1 Ibri 1,lo FIE_')S ERIC,8 SRiD(2E—E 'yea Iw rwemewK 19DK;LWGRE ST[JE I x rred I—Invnrs EIG-5-17 FEL I,W S° 1'92B 'I'm Me Mc rket S'nlue 1091011 ]0971K1 plul61ldr�lll"11'1111111111[11.11111111111111111-ill 1,111 PiopLny(14csdic non Command Comm Ind Properh I.D.:!9-3'-2j-21-r032 REAL Property Description:THE I '65 FT OF E 1B"+F1 C"HE1,e pF FlillV4 OF SEC 19 TV,'P 31 ROE 23,+S I.EQ SLG E&I -)I JES �-IEREOr;EX Q SU6110 EASE CF REC You may be eligible jor one or even tivo :410E"HASE I,E B.�IWE,t4N"'34-rJ,^,,C refandS to reduce Pourproperly lax. TCA,67011A ACRES-051 ax $$$, Omners(S): =IELOS EPIC G`=�ID2E'-,t REFLNUIS? Read the back ofthis statement to find out hom,to app(v. Taxes Pax able _ 2010 2011 1 P11se this amount on I orm%II!'R t1 s1.e It you are digll+k for d property tax rilund SO 00 }lc M August 15 If this box is checked you owe delinquent tats and.ire not enophlc IT,these amounts nn Farm MIPR to sce it)ou a, lhpillic For;spe—I rltund SU IIo Property Tac and Credits 1 Properi) 1.111 hI'll, credlls 1417525 s477002 4 Ciedns tilt,duce p„prm 1.ses l In,mestedd and dgmuhtual march 1dlu( credua SOO) $000 R Aenculmr,d presLnl etch so tk1 $0(K) 5, Prepert,taxes after credits S4 375 25 $4 770 t.2 Properh Tax b)Junsdtction -- - -- b Count) A Ocneral"'LIMN lel} s5's()u 5599 b7 R Reponal nil.uthorttj 5:1193 52000 (numrmumupol public sated rddio systam 10'9 $o 30 S Col,r t,uat S48219 ",)�30 9 SmIL 1.11 Si 211 20 111 2%70 10 Schad dlstnct k11 A Motel apprnxed lm,, cc3t,11 1.51344 R OthL r lo..r letals 1205 49 11 Spl.cral toxin,drstncts 5 Metn,p„Indo epru.l tdxmg(JIMIR.11 144 15 543 2K R Uth1r epscial taxing drsiner S3351 S;u 13 C Ta,mcremem SOOO $u(t0 I) F Z4 dnp.nis 1,1224 b2 5147921 12 Non-school vntrr dpprosed ILlerenda levies S622 ',1'--4 13 1 oul property fix Wort spcctal nssessmtnis 1,4 375 2S S4-,7t,,,2 Special Assessments �- 14 Spectai assmiritriv 4 Solid amsne management charge S799- 57997 0 All other x1lec,al azo smcnts SOW $000 ( Contamination tax 5000 $0(K1 15.I OTAL PROPERTY TAX AND SPECIAL ASSESSMENTS S4 455 22 54.85b 59 Pa)this amount no later than Ma)15,2011 S2428.29 Pax thtl amount no later than October 15,2011 S::7/ 20 City of Centerville $$$REFUNDS If you owned and occupied slim prupertt on Januar} 201 I as tom homestead )ou m,:_quahf)fou one or hoth of the following refunds Eyen if you did not I )ou ma}be eligible for a refund if}our taw,exceeded certain income-ba,cd thresholds.and}our total household qualify in precious income is leas than$99,240 years,)on mai 2 If you also owned and occupied this property en lanuan 2 21110 a,)our hnrnesleld,you roar be eligible for a refund if qualify for for one or you:property taxes metcased by more than I'_p,rcent and at least 5100 rn zi last te,r. P%en tyro refunds from the If you need Form 1,11 PR and instructions State of Minnesota 1 Mn nesota Tax Form. based on yourHug t.ixcs slate out us r+ 165 t i'_Q6-�4=� >.'�;' Mall Station 142) -- _ 2011 Property Taxes. SI Paul,MN 55146-1421 Mall, uire to nrm•rdr vow Propem ID%nn?'t,on,stir,'.IJPR ro exam-,prnmpr pturesrrng Senior Citizens Property Tax Deferral I it,,Senior C'uizcn Dcfcaal Proetam was established to hs.lp scrum citizens hating ddficull)pa)mg pwperts tabes Thos delerrul program allows senior uUzenS to Ieterace the equnt in their home providing two primar}advantages 1 It limits the annual out-of-pocket payment for proputy taxes to 3 percent of total household income,and 2. h prof ides pndu.tabrhn' The amour:you pay will not change for as long as you panrcipata in this poogr.,m To be chgible.}ou must be I i at least 65 tears old.21 with a household'nconie of e60,000 or less.and 31 hate hied m tem home for a1 Fast 15\cors N4-hte m this prngr..m you will only have to pu}taxes equal to 3 pet cent of}our nel mcome,with the icmammg tax paid b),r lov mtefest loan M the State of Minnesota Thu is not a tau forgnu:ess program-the unpaid tax along with accumulated interest will be,orne alien on the propcns for Wolfe s 11,facnon,such as upon r salt or d'spo,ruon of the c,tate to receive a fact shcet and application,please call (651)556-1x(13 Penalty for Late Pay nient of Property Tax If you pay)our first half and s,cond hull propert}w.after the due dale,,a persalt}will be added to,out tax The letei}i❑t pat the greater the penalty}Oil must pa} -rhe table below shows the paudt}}ou will pa)d}om property taxes are not pard before the date shdwlr Agricultural liomecteads: II the due d.u I n rum.,_,rad h.,fj-'r,m ta,pas m:tit is N-C Nt I,end tow ptupern t,eI."Ified Zell 2UI2 as agn:•,hmal honest;ad prop:m thz lir At,rat.-Lm rat.P:pmeut,are h' if ou T pa}h„m Novo»I.et I C through IN h_r "o e�, d}-on pn}nom D,,,emher I 1hre.11 I m 5 i Jenuan I.and 10'-if)uu pay on January 2- 201_'en tale .. I ,_ -„ _ � � Property Type: cc I a ti Agricultural Non-homesteads: if ill,dor Homestead and Cabins dill,lot vow,r,and h iIo pruiwt,rax I 1°half 2':F 4' 5', I fir: 71, K' pa,-ntm n4,tmbu IS and)nm pimped,t 2`1half6 1a 'r 2S� 1i)r t 6'r clasath:d ac.encuhwai non-h,,u e t,id BOIh L•n aid 55. ^r 'rr hSr 1011 pt npem,ilia pen;hr rein f u law P".111, Non-Homestead b•,If sou pas trim Nocembe,16 though No•t Ira T3l',12,if you pa,from 1 half 4'„ Kri sir I 101 11`1 1=', )2r, P 1^',; 1°1i 1451 D,nro'�ul:Luuh1„m.,:,, ..,di t "halt 4t, KC. R'm 12`1 14'1 j u - u J.ameq, '021 of have Both Un std I kC. IP; IK 174 145: Personal Property 8r, L_ k' \nit: 1 he aeu liar peru,wl pr.Puri} � h"t"I,m 1,1� 1d ,c cuas u,"ned land Manufactured Homes 1s p,ud m eo n,taRm,.t,whuh ata. I 1"half I I Kr2 n, k` I dtk at ill,sans,tin,e,real ptopsn)teat,, 2”half � 8-, ki, k1< ,rad ,huh arc•,bic.t m the",m pcnrdty Note to manufactured home owners: Tht title it your manufi.ctnred`wme cannot be it an,ferrcd unless all t unent and achcdulr.,td p.r.dt)rata-,s'M Piop-1, u„t, All ahct pcnon.I pn,p;m uxc,arc delinquent psrsonul prupen)taxes due at the ume 01 the transfer are pard. dvc u:full on or beh,s N1.w 16'011 Anoka County Noiy Offers Direct Payments and Internet Payments for Property Taxes • Yom property tax payaients can now be made automatically from)our checl,ing or savings account For mort,information on direct payments call (763)323-5400 From the main menu press '2'for general information,then press"0'lnot m suable for escrow accounts). • You can pay)our taxes from tour bank account or with your Visa w Nlastercard on line at w v anokaeounn us • Call(763)333-5400 for our Interactive Voice Response tib R)system to access property tax information IMPORTANT INFORMATION ABOUT YOUR PROPERTY TAX STATEMENT Onl)one tax statement per parcel c mailed pet year Statcmenta are mailed in mrd to late March,with the exception of mannfacturcd homes, w hich are marled in mid to late June A change in to owneiihip recorded after Januan 1 td slit current year.will not initiate the mailing of a ncv tax statement the statement will be sent to the previous ownedor taxpayer Mcuteage refinance and/or satisfaction and sale are common reasons for,a change to the current}car taxpayer and require a request for a duplicate tax statement 11 you hoe pard off or refinanced vour mortgage and were escrowing your tax pa}men(.you are re,ponsihic for pa}mg the taxes due Failure to umcly pa)),)or taxes due to not recen mg or ha\mg a tax statement,ill nol fmgin e tie impoamon of penalty and mtcresi If you have not received vour tax statemenno by April 1"of any year i,luh 15'x'for manufactured homesi,please call 17 6 31 323-5400 and request a duplicate. ,- HOMESTF AD PrOpcny current]t i.iassifiied a,homestead will not be mauled:a bomcsteaa x enfication card and w ill continue to he classified as homestead as long as the propel}vs occupied by the owner or qualifying rclatiw as their principal place of residence Am change in the occupancy status of homestead property requires notification to the County Assessor. IMPORTANT TELEPHONE NUMBERS: (651)2%-3781 Pmpea)tax rehmd que,u„n, state of x uu—,ata f763)32.'{-5737 Snhd"a,a nxun,genxm eh.rgc tl_tie'44t yurcuoa.and inferm+uon AnnAe Coumv 17637 323.5400 All property related yue,uvm ,nnAa Cnunn 21 w P: Z ' - D mV uV �+ W L J CDJl Z r w - u - u.+ /w/�/�., W Jl W 2 z \\Z O CD /L r MidLm U O Q Z Cc Q O H U N w w J p W W cmZ _a Z W )„ Q F- O O cow LL 0 co ®a Annual Report on the Twin Cities HousingMarket spaar FOR RESIDENTIAL REAL ESTATE ACTIVITY IN THE BETTER AGENTS • BETTER COMMUNITIES 13-COUNTY TWIN CITIES REGION 5 1 ? t':.J i a_�i A 4�,S 0(_I %r',)k 'F:, •., 5' TWO steps forward, one step back.That's how the 2014 Property Types With boomers emptying their suburban housing recovery went in most local U.S. markets. It was nests and millennials having their own unique set of another recovery year but not without its hurdles-some preferences, market activity can often vary by property type, new,some familiar. Metrics like sales price and new listings but the prevailing trend in median sales prices for both single- showed improvement,while new home construction and family homes and condos-townhouses was up-finishing 2014 inventory didn't quite meet expectations.Though the rate of with increases of 6.6 percent and 8.2 percent, respectively. improvement is uneven across areas,price tiers and market segments,overwhelmingly encouraging data sets a positive tone for 2015. Prices Prices in most areas have enjoyed another year of gains.The overall median sales price rose 7.2 percent to While that data confirms that recovery is still underway, it $205,739 for the year. Home prices should continue to rise in also suggests that the 2014 recovery was not as strong as in 2015 but perhaps at a tempered pace as the market 2013. Moderate inventory gains meant less robust-yet still approaches a natural balancing point. Price gains should be mostly positive-price growth.Since prices have risen,the more in line with historical norms in 2015. affordability picture isn't what it was in 2012 or 2013,though affordability remains above its long-term average. Factors If the economic tailwinds stick around as they should, housing such as inadequate mortgage liquidity,stagnant wage growth will get a boost in 2015.Qualified first-time buyers need good and student loan debt have served as impediments to both jobs and access to mortgage capital.Watch for movement on first-time and move-up buyers. housing finance reform. Rates should be stable until mid-2015, when the Federal Reserve is expected to raise the key federal Sales interest rates remained lower than most expected. funds rate. That helped fuel buyer activity.In general,sales continue to By almost all measures,the economic landscape has improved. skew away from the distressed segments and toward Recent gross domestic product growth is rising at a 5.0 percent traditional sales.Overall pending sales increased 6.1 percent annual rate.The national unemployment rate is under 6.0,down to 49,610 for the year. In 2015,watch for stronger seller from a 10-year high of 10.0 in October 2009, and stocks are activity to increase inventory levels,which could alleviate reaching all times highs.The deficit is down by two-thirds,gas shortages in certain areas and segments. prices are at multi-year lows and we're in the midst of the largest stretch of job gains on record.Given all that,2015 Listi119S Those shopping for homes saw their searches should hold much promise. Here's to making the most of it. return fewer homes but listings of higher quality.With 11,822 active listings as of the end of 2014,consumers had 7.2 percent fewer options in 2014 than in 2013. Persistent price gains meant once-underwater sellers could finally list their homes, but it would be good to see more sellers finding the extra confidence to sell.Seller activity increased 2.3 percent to 73,768 new listings. Expect that to continue in 2015. Table of Contents Distressed Properties In almost every community, 3 Quick Facts foreclosure and short sale activity is declining and is near multi-year lows.That's a good thing,since these distressed 5 Property Type Review product types sell at a steep discount to their traditional 6 Distressed Homes Review counterparts. In 2014,the percentage of closed sales that were either foreclosure or short sale fell 41.8 percent to 16.5 7 New Construction Review percent. 8 Area Overviews 15 Area Historical Prices Click on desired metric to lump to that page. Gurrent as of January 9 2015 All data from NorthstarMLS Powered by 10K Research and Marketing 1 2 2014 Annual Report on the Twin Cities Housing Market &Mp "Quick Factsa a r Rankings iirlude geographies mudh 15 sales of more County totals are not included New Listings Pending Sales 81,858 6552815 68,886 72,130 73,768 49,360 49,610 ,910 42,059 , 38,193 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Top 5 Areas:Change in New Listings from 2013 Top 5 Areas:Change in Pending Sales from 2013 Circle Pines +61.5% Zumbrota +61.1% Dellwood +53.8% Circle Pines +53.0% Zumbrota +46.7% Lilydale +40.9% Watertown +46.1% Newport +38.2% Tonka Bay +44.7% Wayzata +34.2% Bottom 5 Areas:Change in New Listings from 2013 Bottom 5 Areas:Change in Pending Sales from 2013 Lauderdale -22.2% Long Lake -37.5% Saint Bonifacius -23.6% Greenfield -40.5% Loretto -33.3% Spring Park -47.8% Stacy -37.3% Grant -57.1% Osseo -42.6% Lauderdale -60.0% Closed Sales Inventory of Homes for Sale At the end of the yeas 48,814 53,215 49,541 22,676 38,287 41,606 17,472 ENNIS NOMMM 13,060 12,746 11,822 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Top 5 Areas:Change in Closed Sales from 2013 Top 5 Areas:Change in Homes for Sale from 2013 Wayzata +37.7% Excelsior +250.0% Maple Lake +33.9% Lauderdale +100.0% Zumbrota +29.5% Tonka Bay +80.0% Circle Pines +27.8% Spring Park +75.0% Mayer +22.2% Spring Lake Park +63.6% Bottom 5 Areas:Change in Closed sales from 2013 Bottom 5 Areas:Change in Hames for Sale from 2013 Lakeland -36.4% Zumbrota -44.9% Marine on St.Croix -38.1% Saint Paul-West Seventh -46.3% Lauderdale -41.9% Stacy -51.6% Greenfield -44.7% Saint Paul-Como Park -53.8% Spring Park -52.2% Minneapolis-Phillips -69.2% Current as of January 9,2015 All data from NorthstarMLS Pov✓ered b,10h Research and hlarket,no 3 2014 Annual Report on the Twin Cities Housing Market &� Quick Facts s p a a r Rank ngs include geographies vnth 15 sales or more County totals a;e not ind ided Median Sales Price Average Sales Price $192,000 $205,739 $236,265 $252,614 $169,900 $167,900 $211,338 $193,341 $210,726 $150,000 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Top 5 Areas:Change in Median Sales Price from 2013 Top 5 Areas:Change in Avg.Sales Price from 2013 Wayzata +80.3% Wayzata +48.3% Spring Park +63.7% Lilydale +47.6% Dellwood +50.7% Greenfield +43.6% Cologne +44.9% Dellwood +42.6% Greenfield +41.5% Lakeland +40.0% Bottom 5 Areas:Change in Median Sales Price from 2013 Bottom 5 Areas:Change in Avg.Sales Price from 2013 Arden Hills -16.1% Greenwood -12.8% Greenwood -18.9% Loretto -14.5% Dayton -20.3% Shorewood -15.8% Loretto -21.5% Deephaven -16.8% Lauderdale -32.7% Lauderdale -17.2% Cumulative Days on Market Until Sale Percent of Original List Price Received 147 96.1 133 95.7°l0 117 94.0% 83 78 92.3% 90.6% . � r 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Top 5 Areas:Change in Cumulative Days on Market from 2013 Top 5 Areas:Change in Pct.of Orig.Price Received from 2013 Birchwood Village +76,1% Marine on St.Croix +13.6% Dayton +22.2% Birchwood Village +5.9% Saint Paul-Summit Hill +185% Norwood Young America +5.2% Corcoran +13.6% Bayport +4.0% Faribault +12.7% Osseo +3.8% Bottom 5 Areas:Change in Cumulative Days on Market from 21113 Bottom 5 Areas:Change in Pct of Orig.Price Received trom 2013 Mayer -49.0% Nowthen -3.7% Osseo -49.4% Lauderdale -3.8% Lake Elmo -49.5% Cokato -5.1% Rogers -50.8% Excelsior -5.3% Rockford -61.4% Grant -6.6% Current as of January 9 2015 All data from NorthstarMLS Powered by 10K Research and Marketing 1 4 2014 Annual Report on the Twin Cities Housing Market Property Type Review s p a a r Rankings include geographies with 15 sales or more County totals are not included Top Areas:Townhouse-Condo Attached Market Share in 2014 8 Twin Cities Region 24.0% 71 Minneapolis-Central 99.9% Saint Paul-Downtown 97.6% Average Average Lilydale 89.7% Cumulative Days on Market Cumulative Days on Market Minneapolis-University 75.1% Single-Family Detached Townhouse-Condo Attached Hugo 55.4% Spring Park 54.5% Cumulative Days on Market Until Sale Minneapolis-Phillips 54.3% Triis chart Use=a i oIl na 1zn,ont'i a,e,ge fon each data p-int Minneapolis-Calhoun-Isle 51.5% Single-Family -Townhouse-Condo Lauderdale 50.0% 1ao Saint Paul-St.Anthony Park 48.4% 170 Wayzata 48.4% 160 Apple Valley 44.4% . Vadnais Heights 43.7% 150- Hopkins 42.7% 140 Saint Paul-Summit-University 42.1% Little Canada 41.5% 130 Inver Grove Heights 41.5% 120 Burnsville 41.0% Ifo Oakdale 40.5% 100 Woodbury 40.4% Maple Grove 40.3% 90 Eden Prairie 39.6% 80 Rosemount 38.3% 70 Chanhassen 37.7% 1-2010 1-2011 1-2012 1-2013 1-2014 Eagan 37.5% + 6.6% + 8.2% 95.6% 96.0% One-Year Change in Price One-Year Change in Price Pct.of Orig.Price Received Pct.of Orig. Price Received Single-Family Detached Townhouse-Condo Attached Single-Family Detached Townhouse-Condo Attached Median Sales Price Percent of Original List Price Received 02010 2011 ■2012 ■2013 ■2014 ■2010 2011 ■2012 •2013 ■2014 $225K 927% 94.1% 960% 956% 934% 963% 960% $211K 911% 913% 892% $185K $184K $167K $159K •'��V $147K k $135K $125K '-ate 1 Single-Family Detached Townhouse-Condo Attached Single-Family Detached Townhouse-Condo Attached Current as of January 9 2015 All data from NorthstarMLs Powered by 10K Research and Marketing 5 2014 Annual Report on the Twin Cities Housing Market � Distressed Homes Review s p a a r Rankings Include geographies vadh 15 sales or more County totals are not mCluded Top Areas:Distressed Market Share in 2014 Twin Cities Region 16.5% 16.5% - 41 .8% Saint Paul-Dayton's Bluff 34.6% Stacy 34.4% Percent of Closed Sales in One-Year Change in Sales of Saint Paul-Thomas-Dale 34.0% 2014 That Were Distressed Distressed Properties Rush City 32.8% Spring Lake Park 31.3% Saint Paul-Payne-Phalen 31.2% Percent of Sales That Were Distressed Mora 31.1% Minneapolis-Camden 31.0% Brooklyn Center 30.9% 50.0% Marine on St.Croix 30.8% 47.9% Saint Paul-Greater East Side 30.6% Princeton 29.6% 39.7% Saint Paul-Battle Creek/Highwood 29.6% Saint Paul-North End/South Como 29.1% Minneapolis-Near North 29.0% 26.3% Greenfield 28.6% Osseo 28.6% 16.5% Pine City 28.6% Saint Francis 28.6% Albertville 28.4% North Branch 27.9% Hammond 27.9% South Saint Paul 27.4% 2010 2011 2012 2013 2014 Newport 27.3% Lonsdale 27.0% + 37.2% + 10.5% + 17.0% + 27.4% Four-Year Change in Price Four-Year Change in Price Four-Year Change in Price Four-Year Change In Price All Properties Traditional Properties Short Sales Foreclosures Median Sales Price •2011 2012 ■2013 ■2014 $220,000 $221,000 $200,000 $208,793 $154,000 $131,600 $129,200 $140,000 $133,000 $137,625 $118,000 $108,000 Traditional Short Sales Foreclosures Current as of January g 2013 All data from NorthstarMLS Powered by 10K Research and Marketing 6 2014 Annual Report on the Twin Cities Housing Market A New Construction Review s p a a r Rankings include geographies tvf'.h 15 sales or more County totals are not mduded Top Areas:New Construction Market Share in 2014 Mar '10 581 Twin Cities Region 7.0% Medina 38.1% Hanover 35.3% Peak of Drop in New Construction Victoria 33.3% New Construction Inventory Inventory from Peak Cologne 30.8% Chisago 29.7% Otsego 29.5% New Construction Homes for Sale North Oaks 28.0% Rogers 24.3% Oak Grove 22.9% 2,500 Delano 21.0% Minneapolis-Central 20.6% Blaine 20.3% 2,300 Elko New Market 19.7% Bayport 19.5% 2,100 Dayton 19.4% Minnetrista 18.0% Monticello 17.7% Lakeville 17.1% 1,900 Woodbury 16.5% Stacy 164% Isanti 15.5% 1.700 , Ramsey 15.1% North Branch 14.4% Greenfield 143% 1,500 1-2010 1-2011 1-2012 1-2013 1-2014 Ham Lake 13.8% 6.6 2.6 100.2% 95.3% Year-End Months Supply Year-End Months Supply Pct.of Orig.Price Received Pct.of Ong. Price Received New Construction Previously Owned New Construction Previously Owned Months Supply of Inventory Percent of Original List Price Received This chart jse�a F,Ilmq r4onth A\era4e foi each data point 02010 2011 82012 •2013 ■2014 New Construction Previously Owned 102% i 8.1 7.4 72 00% 6.6 i se% 5.3 53 49 96% a kr, 94% 2.7 2.6 I j sz% 90% a 88% .,..,,,,..�..... .,..__,.._w ._......__.,._ New Construction Previously Owned i 1-2010 1-2011 1-2012 1-2013 1-2014 Current as of January 9 2015 All data from Northstart,ILS Powered e�19K Research and Marketing ! 7 2014 Annual Report on the Twin Cities Housing Market & aa Area Overview - Around the Metros p r Percent Cumulative Pct.of Orig. Total Change Percent New Townhouse- Percent Days on Price Closed Sales from 2013 Construction Condo Distressed Market Received Twin Cities Region 49,541 -6.9% 7.0% 24.0% 16.5% 78 95.7% Afton 34 0.0% 0.0% 0.0% 17.6% 103 91.2% Albertville 141 +5.2% 5.7% 25.5% 28.4% 78 95.7% Andover 427 -14.1% 7.0% 6.6% 21.8% 88 94.9% Annandale 103 -1.9% 1.0% 5.8% 22.3% 97 92.29/6 Anoka 197 -7.5% 8.1% 12.2% 25.4% 65 96.8% Apple Valley 842 -4.0% 2.9% 44.4% 17.5% 68 96.1 Arden HMIs 98 -12.5% 1.0% 22.4% 10.2% 58 95.3% Bayport 41 +13.9% 19.5% 7.3% 7.3% 94 95.4% Becker 120 +1.7% 6.7% 9.2% 17.5% 105 95.5% Belle Plaine 140 -6.0% 5.7% 4.3% 18.69/0 92 95.9% Bethel 7 -41.7% 0.0% 0.0% 42.9% 175 81.1% Big Lake 301 -2.9% 9.6% 4.0% 23.3% 76 95.2% Birchwood Village 13 -13.3% 0.0% 0.0% 15.4% 180 91.5% Blaine 1,124 +0.1% 20.3% 34.0% 17.8% 64 97.0% Bloomington 1,153 -1.0% 0.8% 28.5% 14.0% 61 96.6% Bloomington-East 406 +11.2% 2.2% 20.0% 17.2% 59 97.4% Bloomington-West 747 -6.6% 0.0% 33.2% 12.2% 61 96.1% Brainerd MSA 1,764 +2.4% 2.0% 4.4% 13.5% 167 91.6% Brooklyn Center 414 -8.2% 0.0% 8.2% 30.9% 65 95.7% Brooklyn Park 1,123 -11.9% 8.1% 24.2% 26.3% 66 96.8% Buffalo 319 +2.6% 7.2% 11,0% 21.6% 79 953% Burnsville 817 -3.8% 2.8% 41.0% 16.8% 71 95.8% Cambridge 219 +7.9% 9.1% 15.5% 23.7% 77 95.7% Cannon Falls 125 -7.4% 0.8% 9.6% 11.2% 158 93.0% Carver 88 -24.8% 13.6% 23.9% 13.6% 103 94.7% Centerville 58 -25.6% 6.9% 25.9% 17.2% 69 96.3% Champlin 349 -4.9% 2.3% 23.2% 23.5% 75 96.5% Chanhassen 448 -13.7% 12.5% 37.7% 8.7% 78 95.9% Chaska 363 -19.2% 11.6% 30.9% 13.5% 81 96.0% Chisago 101 +6.3% 29.7% 7.9% 15.8% 98 96.2% Circle Pines 92 +27.8% 1.1% 30.4% 26.1% 62 96.8% Clear Lake 105 +1.9% 2.9% 1.0% 21.9% 108 92.0% Clearwater 59 -3.3% 3.4% 5.1% 16.9% 131 94.2% Coates 0 -- i 0.0% 0.0% 0.0% 0 0.0% Cokato 51 -10.5% 0.0% 0.0% 19.6% 120 89.9% Cologne 39 -30.4% 30.8% 2.6% 12.8% 58 95.5% Columbia Heights 312 -10.6% 5.4% 15.4% 24.0% 68 94.4% Columbus 32 +10.3% 3.1% 0.0% 25.0% 80 95.9% Coon Rapids 853 -15.7% 0.9% 28.1% 25.6% 63 96.3% Corcoran 48 -25.0% 0.0% 0.0% 14.6% 92 94.7% Cottage Grove 537 -0.6% 7.8% 15.3% 16.9% 62 96.7% Crystal 384 -9.6% 1.3% 4.9% 22.9% 68 95.4% Dayton 72 +18.0% 19.4% 2.8% 25.0% 86 95.6% Current as of January 9 2015 All data from Not thstarMLS Powered b�10K Research and Marketing 1 8 2014 Annual Report on the Twin Cities Housing Market Area Overview - Around the Metro &Mp a a r Percent Cumulative Pct.of Orig. Total Change Percent New Townhouse- Percent Days on Price Closed Sales from 2013 Construction Condo Distressed Market Received Deephaven 55 -15.4% 1.8% 0.0% 7.3% 85 93.8% Delano 143 -5.3% 21.0% 8.4% 16.8% 99 95.5% Dellwood 19 +11.8% 0.0% 0.0% 0.0% 243 90.3% t Eagan 915 3.8% 6.6% 37.5% 14.3% 62 96.5% East Bethel 155 +2.6% 3.9% 0.0% 23.9% 89 93.9% Eden Prairie 1,024 -3.9% 3.5% 39.6% 8.6% 75 96.0% Edina 949 -4.4% 8.5% 34.1% 48% 78 95.8% Elk River 467 +4.2% 9.9% 22.9% 17.6% 78 96.0% Elko New Market 132 +10.9% 19.7% 12.9% 18.2% 84 97.2% Excelsior 19 -34.5% 0.0% 31.6% 5.3% 73 92.9% Falcon Heights 56 -8.2% 0.0% 10.7% 3.6% 66 95.3% Faribault 418 +14.8% 1.2% 9.1% 244% 118 92.2% Farmington 498 -1.2% 7.6% 25.7% 16.1% 66 96.5% Forest Lake 302 -17.7% 11.3% 25.5% 15.9% 102 95.1% Fridley 343 -5.0% 2.3% 15.7% 23.0% 73 96.0% Gem Lake 2 -500% 50.0% 0.0% 0.0% 56 94.7% Golden Valley 344 -9.5% 2.0% 17.7% 9.3% 68 96.0% Grant 29 -35.6% 0.0% 0.0% 13.8% 123 89.8% Greenfield 21 -44.7% 14.3% 0.0% 28.6% 177 94.7% Greenwood 14 -12.5% 0.0% 21.4% 0.0% 78 90.8% Ham Lake 189 -10.8% 13.8% 5.3% 19.6% 91 95.7% Hamburg 9 0.0% 0.0% 0.0% 11.1% 181 92.6% Hammond 61 +15.1% 1.6% 3.3% 27.9% 129 94.7% Hampton 13 -23.5% 0.0% 0.0% 7.7% 65 94.0% Hanover 68 -5.6% 35.3% 2.9% 20.6% 82 96.1% Hastings 323 -3.3% 5.0% 32.5% 16.1% 78 94.8% Hilltop 2 +100.0% 0.0% 100.0% 50.0% 50 82.5% Hopkins 192 -107% 5.2% 42.7% 20.3% 66 95.5% Hudson 494 -2.9% 7.9% 26.5% 12.3% 122 95.5% Hugo 278 -19.4% 8.3% 55.4% 17.3% 77 96.7% Hutchinson 318 +11.6% 5.0% 13.2% 13.2% 95 94.4% Independence 52 +18.2% 0 0 0 0 p f 0.0% 0.0% 11.5/0 168 91.9/0 Inver Grove Heights 427 -8.2% ; 5.4% 41.5% 20.1% 75 96.0% Isanti 166 -16.4% 15.5% 6.0% 23.8% 66 96.6% f Jordan 113 -0.9% 8.8% 6.2% 22.1% 87 95.1% Lake Elmo 95 +6.7% 6.3% 2.1% 5.3% 122 94.1% Lake Minnetonka Area 854 -8.6% 6.2% 14.4% 14.3% 116 93.6% Lake St.Croix Beach 16 +6.7% 0.0% 12.5% 25.0% 76 91.1% Lakeland 21 -36.4% 0.0% 0.0% 9.5% 156 94.7% Lakeland Shores 1 -80.0% 0.0% 0.0% 0.0% 246 79.2% Lakeville 1,003 -9.7% 17.1% 21.9% 12.1% 78 96.3% Lauderdale 18 -41.9% 0.0% 50.0% 11.1% 75 91.8% E Lexington 10 -9.1% I 0.0% 0.0% 0.0% 33 97.8% Lilydale 29 +20.8% 0.0% 89.7% 0.0% 59 94.6% Current as of JanDary 9 2015 All data from Nor hs tar MLS pccwered by l DK Pesealch and Matketing I n 2014 Annual Report on the Twin Cities Housing Market Area Overview - Around the Metro s p"aa r Percent Cumulative Pct.of Orig. Total Change Percent New Townhouse- Percent Days on Price Closed Sales from 2013 Construction Condo Distressed Market Received Lindstrom 105 -6.3% 1.9% 14.3% 26.7% 128 93.9% Lino Lakes 239 -5.9% 8.8% 20.1% 16.7% 72 96.5% Little Canada 106 -12.4% 9.4% 41.5% 14.2% 77 95.2% Long Lake 22 -29,0% 0.0% 91% 18.2% 104 95.1% Lonsdale 89 -19.8% 3.4% 2.2% 27.0% 71 95.0% Loretto 10 -33.3% 0.0% 30.0% 10.0% 96 94.5% Mahtomedi 96 -27.3% 3.1% 10.4% 6.3% 90 95.1% Maple Grove 1,215 -7.5% 10.9% 40.3% 14.1% 73 96.5% Maple Lake 63 +33.9% 0.0% 2.4% 22.9% 122 92.3% Maple Plain 19 -17.4% 5.3% 0.0% 5.3% 97 93.5% Maplewood 455 -12.7% 2.6% 26.8% 18.5% 78 95.7% Marine on St.Croix 13 -38.1% 0.0% 0.0% 30.8% 132 96.1% Mayer 55 +22.2% 12.7% 1.8% 14.5% 62 95.3% Medicine Lake 5 +25.0% 0.0% 0.0% 20.0% 104 96.2% Medina 134 +11.7% 38.1% 17.9% 3.7% 95 95.3% Mendota 1 0.0% 0.0% 0.0% 100.0% 23 86.8% Mendota Heights 130 -20.7% 0.8°% 24.6% 6.2% 78 95.1% Miesville 1 -75.0% 0.0% 0.0% 0.0% 7 105.2% Minneapolis-(Citywide) 5,478 -2.5% 4.9% 26.8% 14.4% 73 95.8% Minneapolis-Calhoun-Isle 445 +4.7% 3.8% 51.5% 9.0% 107 95.1% Minneapolis-Camden 607 -6.2% 0.7% 2.1% 31.0% 85 92.3% Minneapolis-Central 791 +21.9% 20.6% 99.9% 6.8% 75 98.0% Minneapolis-Longfellow 393 +12.6% 2.3% 1.8% 12.2% 54 97.0% Minneapolis-Near North 328 -1.5% 1.8% 7.3% 29.0% 88 94.1% Minneapolis-Nokomis 778 -8.5% 1.0% 3.2% 12.3% 63 96.7% Minneapolis-Northeast 487 -2.2% 1.2% 5.7% 15.6% 64 95.3% Minneapolis-Phillips 81 -1.2% 1.2% 54.3% 24.7% 91 95.1% Minneapolis-Powderhorn 563 -74% 0.2% 19.9% 20.1% 71 95.39/o Minneapolis-Southwest 838 -12.9% 5.5% 7.8% 5.6% 62 96.49/o Minneapolis-University 177 -18.1% 2.8% 75.1% 4.5% 82 95.2% Minnetonka 830 -1.0% 3.0% 36.9% 9.2% 71 95.6% Minnetonka Beach 10 -9.1% 0.0% 0.0% 0.0% 113 89.9% Minnetrista 128 -3.8% 18.0% 2.3% 14.1% 127 95.09/o Monticello 277 +8.6% 17.7% 17.7% 18.4% 76 96.4% Montrose 76 -26.2% 13.2% 11.8% 25.0% 89 96.0°% Mora 119 +2.6% 0.0% 2.5% 31.1% 1134 90.9% Mound 195 -1.5% 4.6% 12.8% 21.0% 108 93.2% Mounds View 121 0.0% 0.8% 9.9% 18.2% 74 95.3% New Brighton 261 +15.0% 0.8% 29.5% 12.6% 75 95.3% New Germany 10 -16.7% 10.0% 0.0% 30.0% 1 100 94.6% New Hope 232 -10.1% 0.0% 14.7% 19.4% 66 95.3% New Prague 174 -8.9% 11.5% 15.5% 14.4% 102 95.5% New Richmond 246 +79% 7.7% 12.2% 20.70/. 119 95.5% New Trier 0 0.0% 0.0% 0.0% 0 0.0% Current as of January 9 2015 All data from No,thsfafMLS Powered by,10K Research and Marketing 10 2014 Annual Report on the Twin Cities Housing Market Area Overview - Around the Metro &Mp a a r Percent Cumulative Pct.of Orig. Total Change Percent New Townhouse- Percent Days on Price Closed Sales from 2013 Construction Condo Distressed Market Received Newport 44 +18.9% 6.8% 4.5% 27.3% 60 96.9% North Branch 222 -8.6% 14.4% 4.5% 27.9% 83 96.2% North Oaks 75 -25.0% 28.0% 6.7% 5.3% 165 93.5% North Saint Paul 175 -1.1% 0.6% 6.3% 21.7% 76 95.0% Northfield 314 +10.2% 2.2% 24.5% 16.2% 110 93.6% Norwood Young America 65 +6.6% 9.2% 12.3% 16.5% 123 95.3% Nowthen 46 -164% 0.0% 0.0% 15.2% 102 92.4% Oak Grove 118 +7.3% 22.9% 0.0% 14.4% 76 96.6% Oak Park Heights 43 -8.5% 0.0% 37.2% 14.0% 55 96.0% Oakdale 388 -15.8% 0.5% 40.5% 24.5% 68 96.2% Orono 147 -16.0% 8.2% 4.8% 16.3% 139 93.0% Osseo 28 -22.2% 0.0% 10.7% 28.6% 85 96.5% Otsego 339 -17.9% 29.5% 26.0% 14.7% 58 96.1% Pine City 112 -5.9% 2.7% 0.0% 28.6% 120 91.1 Pine Springs 4 +100.0% 0.0% 0.0% 25.0% 49 98.6% Plymouth 1,195 -11.5% 12.6% 352% 7.7% 70 961% Princeton 233 +12.6% 2.1% 5.6% 29.6% 85 94.6% Prior Lake 508 -7.6% 10.6% 26.8% 13.0% 87 95.5% Ramsey 436 -0.9% 15.1% 25.0% 22.7% 64 96.2% Randolph 8 -27.3% 0.0% 0.0% 0.0% 77 97.7% Red Wing 277 -3.1% 0.7% 14.4% 14.1% 138 92.0% Richfield 544 -6.7% 0.9% 10.1% 15.1% 57 96.0% River Falls 218 +1.4% 10.6% 16.5% 12.4% 112 95.3% Robbinsdale 277 +1.1% 0.7% 11.2% 16.2% 84 94.5% Rockford 59 +13.5% 3.4% 13.6% 13.6% 108 95.9% Rogers 206 -4.6% 24.3% 16.5% 10.7% 71 97.8% Rosemount 410 +0.5% 105% 383% 151% 67 965% Roseville 397 -9.8% 1.3% 27.0% 106% 68 96.0% Rush City 64 +8.5% 1.6% 6.3% 32.8% 136 91.7% Saint Anthony 119 -1.7% 0.0% 36.1% 6.7% 51 96.6% Saint Bonifacius 35 -222% 0.0% 314% 22.9% 86 957% Saint Cloud MSA 0 -- 0.0% 0.0% 0.0% 0 0.0% Saint Francis 140 -6.0% 6.4% 20.0% 28.6% 80 95.3% Saint Louis Park 831 -8.6% 4.1% 26.4% 9.6% 67 95.9% Saint Mary's Point 1 -87.5% I 0.0% 0.0% 0.0% i 96 91.9% Saint Michael 230 -19.3% ; 7.8% 20.0% 18.7% 67 95.3% Saint Paul 3,286 -8.6% 0.8% 12.8% 20.1% 85 94.6% Saint Paul-Battle Creek/Highwood 250 -12.6% 0.4% 6.4% 29.6% 74 96.0% Saint Paul-Como Park 209 +14.2% I 0.0% 5.3% 11.0% ; 81 94.6% Saint Paul-Dayton's Bluff 188 -11.3% 0.5% 2.1% 34.6% 89 93.7% Saint Paul-Downtown 126 +0.8% 0.0% 97.6% 6.3% 127 94.4% Saint Paul-Greater Fast Side 343 -18.1% 0.3% 3.5% 30.6% 76 95.2% , f Saint Paul-Hamline-Midway 146 +8.1% ' 0.0% 1.4% 15.1% 67 95.9% Saint Paul-Highland Park 295 -13.0% { 1.0% 11.5% 8.1% 74 95.6% Current as of January 9 2015 All data from NorthstarMLS Powered b�10h Research and i 1arketing 11 2014 Annual Report on the Twin Cities Housing Market Area Overview - Around the Metro 0"s p"aa r Percent Cumulative Pct.of Orig. Total Change Percent New Townhouse- Percent Days on Price Closed Sales from 2013 Construction Condo Distressed Market Received Saint Paul-Lexington-Hamli ne 145 -13.2% 1.4% 4.1% 11.0% 88 94.5% Saint Paul-Macalester-Groveland 287 -8.6% 2.8% 5.9% 2.1% 68 96.9% Saint Paul-North End/South Como 268 -3.6% 0.4% 6.0% 29.1% 80 93.1% Saint Paul-Payne-Phalen 292 -17.3% 0.3% 1.0% 31.2% 91 93.4% Saint Paul-St.Anthony Park 64 +6.7% 0.0% 48.4% 6.3% 79 94.2% Saint Paul-Summit Hill 92 +1.1% 1.1% 31.5% 10.9% 120 94.1% Saint Paul-Summit-University 171 -7.6% 0.0% 42.1% 16.4% 111 93.5% Saint Paul-Thomas-Dale 106 -4.5% 6.6% 1.9% 34.0% 104 93.0% Saint Paul-West Seventh 146 -9.3% 0.0% 26.0% 22.6% 89 93.6% Saint Paul-West Side 158 -9.7% 0.6% 3.2% 24.7% 91 92.9% Saint Paul Park 75 -20.2% 2.7% 12.0% 22.7% 64 93.7% Savage 520 -8.1% 11.0% 27.7% 12.9% 77 96.6% Scandia 49 +8.9% 10.2% 0.0% 16.3% 190 92.5% Shakopee 666 -8.0% 3.9% 37.2% 20.6% 69 96.5% Shoreview 387 -4.0% 3.1% 34.9% 10.9% 69 95.9% Shorewood 112 -11.8% 2.7°% 16.1% 8.0% 93 95.69/o Somerset 77 +13.2% 1.3% 5.2% 20.8% 115 94.4% South Haven 52 -3.7% 0.0% 0.0% 17.3°% 172 93.4% South Saint Paul 270 -13.5% 0.4% 6.3% 27.4% 74 94.7% Spring Lake Park 67 -29.5% 00% 7.5% 31.3% 67 94.7% Spring Park 11 -52.2% 0.0% 54.5% 9.1% 212 94.6% Stacy 61 -20.8% 16.4% 4.9% 34.4% 108 95.7% Stillwater 338 -12.4% 12.4% 24.9% 9.8% 92 95.3% Sunfish Lake 4 -42.9% 0.0% 0.0% 0.0% 398 851% Tonka Bay 23 -28.1% 0.0% 8.7% 17.4% 117 90.4% Vadnais Heights 167 -10.7% 1.2% 43.7% 15.6% 68 95.3% Vermillion 3 +50.0% 00% 0.0% 0.0% 40 98.2% Victoria 210 -5.8% 33.3% 18.1% 4.8% 89 96.7% Waconia 233 -6.0% 10.7% 23.2% 12.0% 80 96.0% Watertown 91 +1.1% 3.3% 6.6% 14.39/6 89 93.7% Wayzata 95 +37.7% 5.3% 48.4% 9.5% 129 92.2% West Saint Paul 246 -6.5% 2.0% 20.3% 19.9% 87 93.4% White Bear Lake 345 -15.0% 1.2% 21.2% 17.4% 69 95.5% Willernie 6 -53.8% 0.0% 0.00/0 0.0% 73 98.1% Woodbury 1,253 -11.9% 16.5% 40.4% 10.6% 63 96.7% Woodland 7 -22.2% 0.0% 0.0% 0.0% 297 80.1% Wyoming 98 -12.5% 8.2% 4.1% 20.4% 85 95.5% Zimmerman 222 -7.9% 8.1% 7.7% 23.0% 83 95.7% Zumbrota 79 +29.5% 2.5% 5.1% 3.8% 86 92.6% Cwrent as of Janua,y 9 2015 A6 data fiom IJorthstarf.lLS PcwLied by 10K Research and Marketing 1 12 2014 Annual Report on the Twin Cities Housing Market Area Overview - Counties &smp a a r Percent Cumulative Pct.of Drill. Total Change Percent New Townhouse- Percent Days on Price Closed Sales from 2013 Construction Condo Distressed Market Received Anoka County 4,930 -7.1% 9.7% 20.7% 22.0% 71 96.0% r Carver County 1,617 -12.6% 14.5% 25.3% 11.4% 64 95.8% Chisago County 860 -4.3% 11.3% 5.3% 25.7% 106 94.9% Dakota County 6,000 -5.5% 6.9% 33.0% 16.0% 72 95.9% Goodhue County 687 +6.8% 1.2% 10.6% 13.5% 148 92.1% Hennepin County 18,107 -5.5% 5.7% 26.8% 14.0% 73 95.9% Isantf County 577 -10.3% 8.0% 7.8% 26.7% 84 95.4% Kanabec County 213 +4.9% 00% 1.4% 28.2% 146 88.7% Mille Lacs County 360 -0.6% 1.4% 6.4% 26.7% 128 92.6% Ramsey County 6,150 -8.3% 1.6% 19.4% 17.4% 80 95.0% Rice County 873 +5.1% 2.1% 13.7% 21.0% 111 93.1% Scott County 2,286 -7.4% 8.8% 25.1% 16.3% 83 96.1% Sherburne County 1,458 -3.1% 8.4% 11.2% 19.6% 84 95.5% St.Croix County 1,281 -4.4% 7.7% 15.5% 17.6% 123 95.3% i Washington County 3,781 -12.2% 1 10.1% 29.2% 14.2% 78 95.9% Wright County t 2,096 -6.8% i 12.9% 14.1% 20.0% 86 95.2% Current as of January 9 2015 All data from Nor thstarMLS Powered by 10K Research and Marketing 1 13 2014 Annual Report on the Twin Cities Housing Market Area Overview - Western WI School Districts &smpa"ar Percent Cumulative Pct.of Orig. Total Change Percent New Townhouse- Percent Days on Price Closed Sales from 2013 Construction Condo Distressed Market Received Amery,WI-School District 119 134 +11.7% 0.0% 5.2% 17.9% 190 91.0% Baldwin-Woodville,WI-School District 231 107 -7.0% 2.8% 6.5% 21.5% 118 96.2% Clayton,WI-School District 1120 12 -33.3% 0.0% 0.0% 33.3% 230 85.7% Clear Lake,WI-School District 1127 39 +11.4% 0.0% 0.0% 25.6% 155 90.7% Cumberland,WI-School District 1260 58 +9.4% 3.4% 6.9% 3.4% 164 90.2% Ellsworth,WI-School District 1659 119 +11.7% 0.0% 4.2% 25.2% 156 92.0% Elmwood,WI-School District 1666 14 -22.2% 0.0% 7.1% 14.3% 129 90.3% Frederic,WI-School District 1939 42 -2.3% 0.0% 0.0% 16.7% 231 85.9% Glenwood City,Wl-School District 2198 31 +3.3% 0.0% 0.0% 51.6% 138 93.5% Grantsburg,WI-School District 2233 50 +4.2% 0.0% 0.0% 30.0% 206 90.2% Hudson,WI-School District 2611 518 -8.3% 8.1% 25.3% 12.0% 127 95.3% Luck,WI-School District 3213 59 +22.9% 0.0% 0.0% 25.4% 169 89.3% New Richmond,WI-School District 3962 300 +9.9% 9.7% 10.3% 21.3% 128 95.2% Osceola,WI-School District 4165 131 -13.2% 0.8% 4.6% 26.0% 145 92.4% Pepin,WI-School District 4270 25 -21.9% 0.0% 4.0% 20.0% 188 88.9% Plum City,WI-School District 4459 11 -31.3% 0.0% 0.0% 54.5% 265 93.1% r Prescott,WI-School District 4578 93 -13.9% 2.2% 14.0% 30.1% 162 91.9% River Falls,WI-School District 4893 237 -8.5% 10.5% 15.2% 13.1% 108 95.4% Somerset,WI-School District 5432 90 -11.8% 1.1% 4.4% 21.1% 106 95.1% Spring Valley,WI-School District 5586 41 +2.5% 2.4% 2.4% 19.5% 208 93.6% St.Croix Central,WI-School District 2422 107 0.0% 1.9% 2.8% 29.0% 119 94.6% St.Croix Falls,WI-School District 5019 94 -30.4% 4.3% 5.3% 28.7% 170 89.6% Turtle Lake,WI-School District 5810 47 -6.0% 2.1% 2.1% 8.5% 208 86.2% i Unity,WI-School District 238 154 +19.4% 0.6% 0.6% 19.5% 180 89.4% r Current as of January 9 2015 All data from NorthstarMLS Powered by 10K Research and Marketing 1 14 2014 Annual Report on the Twin Cities Housing Market Median Prices - Around the Metro s p a a r Change Change 2010 2011 2012 2013 2014 From 2013 From 2010 Twin Cities Region $169,900 $150,000 $167,900 $192,000 $205,739 +7.2% +21.1% Afton $330,000 $430,000 $275,000 $409,500 $412,375 +0.7% +25.0% Albertville $150,200 $142,500 $149,950 $178,900 $179,900 +10.6% +19.8% Andover $205,000 $182,000 $205,000 $227,491 $236,700 +4.0% +15.5% Annandale $154,110 $153,889 $170,000 $159,000 $172,221 +8.3% +11.8% Anoka $136,312 $113,500 $122,900 $146,950 $166,000 +13.0% +21.8% Apple Valley $177,150 $149,950 $175,000 $195,000 $213,000 +9.2% +20.2% Arden Hills $241,025 $157,500 $325,000 $300,300 $252,000 -16.1% +4.6% Bayport $157,500 $147,000 $184,500 $200,000 $237,450 +18.7% +50.8% Becker $131,950 $131,700 $149,375 $155,900 $169,900 +9.0% +28.8% Belle Plaine $142,250 $137,300 $145,000 $159,000 $187,400 +17.9% +31.7% Bethel $147,600 $100,000 $115,950 $135,000 $115,000 -14.8% -22.1% Big Lake $140,000 $117,500 $134,900 $154,500 $169,900 +10.0% +21.4% Birchwood Village $0 $240,500 $227,900 $287,375 $340,000 +18.3% -- Blaine $170,500 $154,900 $175,000 $199,200 $218,957 +9.9% +28.4% Bloomington $178,322 $157,000 $171,000 $193,100 $201,000 +4.1% +12.7% Bloomington-Fast $157,000 $140,000 $145,300 $169,350 $182,000 +7.5% +15.9% Bloomington-West $206,950 $181,725 $191,000 $215,000 $225,000 +4.7% +8.7% Brainerd MSA $152,000 $145,000 $154,700 $160,000 $165,000 +3.1% +8.6% Brooklyn Center $110,000 $82,300 $95,000 $122,250 $139,950 +14,5% +27.2% Brooklyn Park $140,000 $127,000 $146,000 $167,000 $174,900 +4.7% +24.9% Buffalo $150,000 $131,500 $141,000 $171,810 $175,000 +1.9% +16.7% Burnsville $167,000 $147,750 $165,300 $185,000 $209,000 +13.0% +25.1% Cambridge $105,000 $94,000 $101,300 $127,000 $148,250 +16.7% +41.2% Cannon Falls $139,450 $121,450 $145,000 $177,500 $168,800 -4.9% +21.0% Carver $225,900 $225,000 $245,000 $282,500 $270,000 -4.4% +19.5% Centerville $180,000 $154,600 $180,000 $189,950 $197,500 +4.0% +9.7% Champlin $172,078 $148,000 $159,400 $182,700 $194,000 +6.2% +12.7% Chanhassen $313,500 $297,500 $280,500 $303,500 $318,000 +4.8% +11.4% Chaska $210,750 $170,000 $207,500 $251,000 $235,000 -6.4% +11.5% Chisago $159,500 $155,700 $168,500 $199,850 $201,000 +0.6% +26.0% Circle Pines $139,900 $124,150 $139,450 $144,150 $154,000 +6.8% +10.1% Clear Lake $168,950 $146,800 $152,450 $160,500 $154,500 -3.79,o -8.6% Clearwater $159,900 $127,750 $150,000 $160,000 $159,500 -0.3% -0.3% Coates $0 $0 $0 $0 $0 -- Cokato $99,000 $107,500 $105,000 $129,900 $119,900 7.7% +21.1% Cologne $193,000 $189,900 $182,550 $181,500 $262,950 +44.9% +36.2% Columbia Heights $120,000 $101,500 $99,950 $132,000 $140,000 +6.1% +16.7% Columbus $232,000 $177,277 $208,500 $202,800 $227,500 +12.2% -1.9% Coon Rapids $133,000 $114,900 $125,105 $150,000 $160,600 ` +7.1% +20.8% Corcoran $291,500 $246,000 $230,000 $300,000 $312,500 4 +4.2% +7.2% Cottage Grove $174,450 $160,000 $174,650 $194,000 $210,000 +8.2% +20.4% Crystal $139,900 $105,000 $127,550 $149,250 $158,000 i +5.9% +12.9% Dayton $205,000 $142,000 $191,500 $274,000 $218,250 i -20.3% +6.5% Current as of January B,2015 All data from NorthstaftfLc Powered by 10K Research and Marketing 1 15 2014 Annual Report on the Twin Cities Housing Market Median Prices - Around the Metro s p-aa r Change Change 2010 2011 2012 2013 2014 From 2013 From 2010 Deephaven $509,000 $322,000 $493,250 $518,500 $585,000 +12.8% +14.9% Delano $195,000 $173,150 $205,500 $232,870 $241,250 +3.6% +23.7% Dellwood $617,575 $499,000 $360,000 $507,500 $765,000 +50.7% +23.9% Eagan $189,000 $170,950 $193,990 $220,000 $234,375 +6.5% +24.0% East Bethel $150,400 $162,500 $165,000 $179,900 $198,500 +10.3% +32.0% Eden Prairie $264,800 $257,110 $257,000 $279,647 $300,000 +7.3% +13.3% Edina $339,000 $339,000 $343,875 $350,000 $380,000 +8.6% +12.1% Elk River $160,000 $132,000 $157,000 $172,000 $195,000 +13.4% +21.9% Elko New Market $209,900 $193,000 $215,000 $247,627 $257,260 +3.9% +22.6% Excelsior $277,000 $350,000 $291,500 $409,750 $452,500 +10.4% +63.4% Falcon Heights $239,500 $207,500 $228,706 $244,000 $257,450 +5.5% +7.5% Faribault $118,500 $100,000 $115,000 $128,450 $137,500 +7.0% +16.0% Farmington $172,000 $140,500 $163,000 $192,500 $210,000 +9.1% +22.1% Forest Lake $135,450 $153,750 $185,000 $191,000 $219,900 +15.1% +62.3% Fridley $136,545 $120,000 $127,000 $153,500 $160,000 +4.2% +17.2% Gem Lake $225,450 $240,000 $352,261 $169,450 $563,864 +232.8% +150.1% Golden Valley $235,500 $199,000 $218,500 $246,000 $247,500 +0.6% +5.1% Grant $395,000 $422,500 $367,500 $415,500 $445,000 +7.1% +12.7% Greenfield $237,750 $373,000 $350,000 $354,000 $500,750 +41.5% +110.6% Greenwood $659,900 $755,000 $675,000 $921,500 $747,500 -18.9% +13.3% Ham Lake $227,500 $211,500 $231,000 $271,600 $289,900 +6.7% +27.4% Hamburg $102,450 $75,200 $111,500 $95,500 $138,000 +44.5% +34.7% Hammond $116,500 $115,750 $121,450 $144,000 $152,900 +6.2% +31.2% Hampton $189,950 $172,000 $138,500 $217,250 $200,000 -7.9% +5.3% Hanover $208,875 $214,950 $211,000 $239,950 $254,313 +6.0% +21.8% Hastings $148,500 $128,500 $142,000 $169,900 $182,500 +7.4% +22.9% Hilltop $35,000 $0 $24,500 $34,500 $47,500 +37.7% +35.7% Hopkins $146,000 $125,000 $159,950 $180,500 $182,000 +0.8% +23.0% Hudson $194,848 $184,500 $195,000 $228,500 $233,125 +2.0% +19.6% Hugo $158,338 $137,000 $164,199 $195,000 $180,000 -7.7% +13.7% Hutchinson $127,950 $115,000 $111,500 $125,000 $142,000 +13.6% +11.0% Independence $433,500 $247,950 $387,250 $405,000 $424,950 +4.9% -2.0% Inver Grove Heights $165,500 $155,000 $160,000 $194,950 $182,500 -6.4% +10.3% ISanti $114,114 $91,500 $117,000 $125,000 $149,900 +19.9% +31.4% Jordan $174,150 $178,000 $177,000 $215,000 $208,750 -2.9% +19.9% Lake Elmo $369,500 $374,800 $367,500 $374,900 $428,500 +14.3% +16.0% Lake Minnetonka Area $345,000 $326,500 $340,000 $369,900 $380,000 +2.7% +10.1% Lake St.Croix Beach $154,850 $85,250 $180,000 $139,000 $176,250 +26.6% +13.8% Lakeland $211,000 $221,000 $195,500 $204,990 $223,000 +8.8% +5.7% Lakeland Shores $738,100 $178,139 $270,000 $265,000 $1,500,000 +466.0% +103.2% Lakeville $225,000 $205,000 $226,000 $258,000 $272,000 +5.4% +20.9% Lauderdale $173,900 $128,150 $168,000 $175,000 $117,750 -32.7% -32.3% Lexington $130,000 $108,563 $136,950 $149,900 $181,920 +21.4% +39.9% Lilydale $201,500 $177,500 $190,000 $200,250 $280,000 +39.8% +39.0% Cunent as of January 9 2015 All data fiom NorthstarMLS Powered b�1 OK Research and Marketing 16 2014 Annual Report on the Twin Cities Housing Market Median Prices - Around the Metro &Mp a r Change Change 2010 2011 2012 2013 2014 From 2013 From 2010 Lindstrom $150,000 $143,900 $140,000 $160,025 $179,999 +12.5% +20.0% Lino Lakes $211,250 $174,200 $208,375 $229,900 $243,300 +5.8% +15.2% Little Canada $106,500 $140,000 $175,000 $185,500 $192,593 +3.8% +80.8% Long Lake $198,500 $186,500 $227,500 $231,500 $212,250 -8.3% +6.9% Lonsdale $150,000 $135,000 $144,900 $171,000 $182,300 +6.6% +21.5% Loretto $215,572 $217,875 $130,000 $199,900 $156,900 -21.5% -27.2% Mahtomedi $249,995 $257,500 $249,900 $245,000 $299,900 +224% +200% Maple Grove $258,000 $214,000 $219,453 $233,000 $246,000 +5.6% -4.7% Maple Lake $100,000 $112,840 $134,950 $145,000 $167,000 +15.2% +67.0% Maple Plain $166,700 $153,500 $187,450 $178,750 $212,500 +18.9% +27.5% Maplewood $156,000 $139,400 $145,000 $165,000 $182,500 +10.6% +17.0% Marine on St.Croix $272,500 $242,000 $274,450 $320,000 $322,450 +0.8% +18.3% Mayer $174,950 $169,900 $164,405 $189,900 $190,000 +0.1% +8.6% Medicine Lake $600,000 $315,000 $650,000 $542,000 $465,000 -14.2% -22.5% Medina $615,000 $525,000 $460,000 $527,500 $525,000 -0.5% -14.6% Mendota $493,500 $80,000 $154,500 $287,000 $78,000 -72.8% -84.2% Mendota Heights $305,000 $286,500 $272,000 $282,500 $330,000 +16.8% +8.2% Miesvdle $165,350 $0 $140,000 $231,671 $205,000 -11.5% +24.0% Minneapolis-(Citywide) $160,000 $140,000 $165,000 $189,000 $205,000 +8.5% +28.1% Minneapolis-Calhoun-Isle $315,000 $267,021 $300,000 $325,560 $318,500 -2.2% +1.1% Minneapolis-Camden $66,002 $45,000 $59,500 $76,500 $101,000 +32.0% +53.0% Minneapolis-Central $225,000 $214,250 $220,000 $247,250 $321,000 +29.8% +42.7% Minneapolis-Longfellow $170,500 $147,500 $169,000 $185,200 $196,500 +6.1% +15.2% Minneapolis-Near North $55,000 $43,000 $60,000 $80,999 $100,150 +23.6% +82.1% Minneapolis-Nokomis $195,200 $162,700 $176,500 $199,900 $222,125 +11.1% +13.8% Minneapolis-Northeast $151,500 $125,000 $140,000 $169,328 $179,250 +5.9% +18.3% Minneapolis-Phillips $110,000 $72,500 $88,000 $90,225 $115,000 +27.5% +4.5% Minneapolis-Powderhorn $135,000 $110,000 $116,400 $157,250 $168,000 +6.8% +24.4% Minneapolis-Southwest $276,000 $264,450 $277,000 $306,000 $323,500 +5.7% +17.2% Minneapolis-University $207,950 $205,250 $209,950 $221,500 $225,000 +1.6% +8.2% Minnetonka $265,713 $233,000 $255,000 $279,000 $270,000 -3.2% +1.6% Minnetonka Beach $825,000 $1,130,000 $675,000 $670,000 $1,096,450 +63.6% +32.9% Mrnnetrista $325,086 $349,950 $385,000 $435,000 $434,000 -0.2% +33.5% Monticello $135,000 $124,000 $137,095 $156,045 $172,000 +10.2% +27.4% Montrose $131,371 $114,950 $130,357 $149,000 $164,550 +10.4% +25.3% Mora $79,900 $84,400 $86,500 $98,000 $100,000 +2.0% +25.2% Mound $188,000 $150,000 $169,000 $191,000 $202,000 +5.8% +7.4% Mounds View $166,700 $134,950 $139,500 $163,000 $176,000 +8.0% +5.6% New Brighton $178,000 $157,500 $165,000 $171,000 $197,000 +15.2% +10.7% New Germany $105,000 $110,000 $100,000 $142,450 $154,354 +8.4% +47.0% New Hope $148,000 $126,125 $155,000 $173,000 $185,000 +6.9% +25.0% New Prague $161,250 $143,000 $174,000 $195,000 $188,950 -3.1% +17.2% r New Richmond $135,400 $110,000 $124,900 $137,850 $155,850 +13.1% +15.1% New Trier $149,900 $0 $75,000 $63,700 $0 -100.0% -100.0% Current as of January 9 2015 All data from NotthstalrALS Powered b�,10h Research and Marketing 1 17 2014 Annual Report on the Twin Cities Housing Market Median Prices - Around the Metro &smp a a r Change Change 2010 2011 2012 2013 2014 From 2013 From 2010 Newport $123,500 $72,175 $98,500 $141,000 $167,000 +18.4% +35.2% North Branch $136,000 $115,000 $123,650 $150,000 $164,900 +9.9% +21.3% North Oaks $584,000 $480,000 $510,000 $625,000 $632,997 +1.3% +8.4% North Saint Paul $145,000 $120,000 $139,950 $150,500 $168,000 +11.6% +15.9% Northfield $159,900 $144,550 $157,250 $182,500 $181,963 -0.3% +13.8% Norwood Young America $155,450 $119,900 $128,912 $146,000 $158,500 +8.6% +2.0% Nowthen $216,000 $180,000 $209,500 $234,500 $241,000 +2.8% +11.6% Oak Grove $200,450 $175,000 $200,825 $228,960 $244,000 +6.6% +21.7% Oak Park Heights $136,100 $130,000 $134,799 $176,200 $177,000 +0.5% +30.1% Oakdale $164,600 $133,000 $134,950 $164,000 $168,000 +2.4% +2.1% Orono $565,000 $532,500 $377,223 $501,000 $572,000 +14.2% +1.2% Osseo $136,000 $115,000 $153,950 $141,950 $175,000 +23.3% +28.7% Otsego $160,610 $159,900 $163,450 $194,525 $214,900 +10.5% +33.89/6 Pine City $100,000 $81,500 $105,260 $111,275 $120,000 +7.8% +20.0% Pine Springs $390,000 $300,000 $271,500 $320,000 $377,500 +18.0% -3.2% Plymouth $249,000 $245,000 $275,500 $304,450 $305,000 +0.2% +22.5% Princeton $113,900 $111,000 $105,000 $138,900 $149,000 +7.3% +30.8% Prior Lake $223,900 $211,000 $227,500 $270,000 $281,000 +4.19/o +25.5% Ramsey $156,830 $137,000 $153,000 $182,450 $199,900 +9.6% +27.5% Randolph $198,900 $168,937 $139,950 $195,900 $262,500 +34.0% +32.0% Red Wing $125,000 $119,850 $127,500 $126,900 $139,375 +9.8% +11.5% Richfield $160,000 $140,250 $155,000 $174,950 $183,750 +5.0% +14.8% River Falls $172,500 $143,600 $151,000 $168,500 $179,200 +6.4% +3.9% Robbinsdale $131,500 $104,750 $123,500 $140,000 $159,000 +13.6% +20.9% Rockford $169,800 $130,000 $154,000 $197,400 $184,768 -6.4% +8.8% Rogers $212,000 $210,000 $236,000 $265,000 $278,950 +5.3% +31.6% Rosemount $201,500 $170,000 $180,500 $215,000 $228,500 +6.3% +13.4% Roseville $190,000 $158,500 $187,450 $197,535 $205,000 +3.8% +7.9% Rush City $95,000 $113,000 $92,000 $122,750 $149,000 +21.4% +56.8% Saint Anthony $181,000 $178,200 $154,950 $179,950 $213,400 +18.6% +17.9% Saint Bonlfacius $178,850 $145,000 $189,500 $185,500 $179,000 -3.5% +0.1% Saint Cloud MSA $0 $0 $0 $0 $0 Saint Francis $135,000 $122,550 $130,000 $149,900 $159,950 +6.7% +18.5% Saint Louis Park $213,250 $185,000 $198,450 $219,000 $230,000 +5.0% +7.9% Saint Mary's Point $134,500 $1,100,000 $170,500 $258,800 $347,400 +34.2% +158.3% Saint Michael $165,000 $165,000 $183,000 $198,900 $220,000 +10.6% +33.3% Saint Paul $121,500 $100,000 $120,000 $143,950 $157,000 +9.1% +29.2% Saint Paul-Battle Creek 1 Highwood $121,500 $89,700 $111,950 $135,100 $146,251 +8.3% +20.4% Saint Paul-Como Park $190,400 $145,000 $170,000 $190,000 $197,500 +3.9% +3,7% Saint Paul-Dayton's Bluff $74,950 $50,000 $59,450 $93,950 $110,463 +17.6% +47.4% Saint Paul-Downtown $152,500 $128,250 $136,500 $157,975 $178,000 +12.7% +16.7% i Saint Paul-Greater East Side $102,000 $85,000 $88,900 $115,250 $129,900 +12.7% +27.4% Saint Paul-Hamline-Midway $142,000 $104,500 $126,350 $149,125 $155,950 +4.6% +9.8% r Saint Paul-Highland Park $232,250 $235,000 $229,900 $249,500 $261,000 i +4.6% +12.4% Current as of January 9 2015 All data fiom NorthstarrALS Powered by 10K Research and Marketing 18 2014 Annual Report on the Twin Cities Housing Market Median Prices - Around the Metro s p a a r Change Change 2010 2011 2012 2013 2014 From 2013 From 2010 Saint Paul-Lexington-Hamline $217,000 $210,000 $240,000 $228,950 $250,000 +9.2% +15.2% Saint Paul-Macalester-Groveland $250,000 $228,750 $235,000 $264,250 $277,500 +5.0% +11.0% Saint Paul-North End/South Como $76,250 $57,313 $74,050 $99,900 $118,000 +18.1% +54.8% Saint Paul-Payne-Phalen $82,000 $65,000 $80,500 $100,000 $124,900 +24.9% +52.3% Saint Paul-St.Anthony Park $216,750 $180,000 $190,000 $259,500 $234,750 -9.5% +8.3% Saint Paul-Summit Hill $377,500 $325,000 $288,000 $341,450 $350,000 +2.5% -7.3% Saint Paul-Summit-University $157,325 $130,000 $148,750 $170,000 $185,000 +8.8% +17.6% Saint Paul-Thomas-Dale $65,450 $45,000 $55,000 $80,900 $106,500 +31.6% +627% Saint Paul-West Seventh $142,900 $103,626 $121,000 $145,000 $148,250 +2.2% +3.7% Saint Paul-West Side $113,000 $82,000 $90,000 $122,000 $137,000 +12.3% +21.2% Saint Paul Park $134,600 $117,000 $127,750 $145,200 $160,000 +10.2% +18.9% Savage $200,000 $186,500 $208,000 $235,000 $255,000 +8.5% +27.5% Scandia $235,000 $240,000 $247,870 $283,367 $285,000 +0.6% +21.3% Shakopee $180,000 $154,900 $166,750 $194,700 $205,000 +5.3% +13.9% Shoreview $205,000 $180,000 $191,000 $222,500 $222,750 +0.1% +8.7% Shorewood $359,288 $349,950 $414,900 $425,000 $382,500 -10.0% +6.5% Somerset $130,950 $127,000 $119,900 $144,500 $177,500 +22.8% +35.5% South Haven $215,500 $187,500 $153,500 $184,950 $190,750 +3.1% -11.5% South Saint Paul $131,500 $114,995 $112,000 $139,450 $148,000 +6.1% +12.5% Spring Lake Park $131,000 $92,250 $118,000 $141,000 $164,900 +17.0% +25.9% Spring Park $266,500 $199,900 $352,500 $272,500 $446,050 +63.7% +67.4% Stacy $138,500 $139,000 $108,750 $181,750 $199,000 +9.5% +43.7% Stillwater $230,000 $208,000 $216,000 $233,500 $265,000 +13.5% +15.2% Sunfish Lake $300,000 $550,320 $685,000 $819,000 $1,110,000 +35.5% +270.0% Tonka Bay $495,000 $550,000 $797,500 $477,500 $570,000 +19.4% +15.2% Vadnais Heights $165,000 $165,000 $149,900 $167,250 $194,650 +16.4% +18.0% Vermillion $145,013 $153,500 $187,500 $157,500 $220,000 +39.7% +51.7% Victoria $374,695 $351,250 $344,123 $371,500 $369,990 -0.4% -1.3% Waconia $213,500 $187,500 $204,250 $229,000 $237,000 +3.5% +11.0% Watertown $159,500 $118,000 $153,000 $175,000 $170,450 -2.6% +6.9% Wayzata $439,000 $426,000 $427,500 $348,000 $627,500 +80.3% +42.9% West Saint Paul $136,500 $120,000 $125,700 $143,000 $156,200 +9.2% +14.4% White Bear Lake $175,000 $148,500 $161,950 $178,500 $192,900 +8.1% +10.2% Willernie $117,699 $77,000 $141,500 $128,900 $160,000 +24.1% +35.9% Woodbury $243,750 $219,700 $240,000 $267,250 $283,500 +6.1% +16.3% Woodland $561,000 $1,065,000 $700,000 $370,000 $3,275,000 +785.1% +483.8% Wyoming $156,700 $150,000 $163,750 $190,000 $209,000 +10.0% +33.4% Zimmerman $143,700 $118,000 $130,000 $150,500 $161,900 +7.6% +12.7% Zumbrota $129,700 $132,950 $149,900 $155,000 $156,000 +0.6% +203% Current as of January 9 2015 All data from NorthstarMLS Powered by 10K Research and Mart.etinq 1 19 2014 Annual Report on the Twin Cities Housing Market Median Prices - Counties &smpma' a r Change Change 2010 2011 2012 2013 2014 From 2013 From 2010 Anoka County $155,000 $136,900 $152,000 $174,900 $187,730 +7.3% +21.1% Carver County $230,000 $215,784 $230,000 $250,820 $258,050 +2.9% +12.2% Chisago County $145,250 $136,000 $139,000 $165,000 $183,000 +10.9% +26.0% Dakota County $175,000 $156,000 $170,500 $200,000 $215,000 +7.5% +22.9% Goodhue County $134,500 $127,000 $134,900 $149,000 $149,900 +0.6% +11.4% Hennepin County $184,000 $162,500 $182,500 $209,900 $221,000 +5.3% +20.1% Isanti County $109,900 $94,950 $117,900 $128,050 $149,900 +17.1% +36.4% Kanabec County $85,000 $76,250 $79,500 $100,000 $101,500 +1.5% +19.4% Mille Lacs County $89,000 $85,000 $92,010 $110,000 $124,900 +13.5% +40.3% Ramsey County $145,000 $125,500 $142,000 $163,000 $176,500 +8.3% +21.7% Rice County $140,000 $125,000 $134,000 $155,250 $165,001 +6.3% +17.9% Scott County $190,000 $180,000 $197,000 $226,750 $239,900 +5.8% +26.3% Sherburne County $149,900 $129,900 $143,400 $162,300 $175,000 +7.8% +16.7% St.Croix County $160,000 $144,650 $149,000 $177,500 $186,000 +4.8% +16.3% Washington County $195,000 $179,000 $200,000 $220,000 $236,000 +7.3% +21.0% Wright County $152,390 $139,000 $151,900 $176,000 $185,000 +5.1% +21.4% Cuuent as of January 9 2015 All data from NorthstartALS Powered b,10K Research and Marketing ! 20 2014 Annual Report on the Twin Cities Housing Market Median Prices - Western WI School Districts 0"s p"aa r Change Change 2010 2011 2012 2013 2014 From 2013 From 2010 Amery,WI-School District 119 $105,000 $95,000 $109,900 $105,000 $124,250 +18.3% +18.3% Baldwin-Woodville,WI-School District 231 $122,000 $105,000 $107,000 $126,100 $144,750 +14.8% +18.6% Clayton,Wl-School District 1120 $114,000 $93,000 $100,000 $122,500 $103,250 -15.7% -9.4% Clear Lake,WI-School District 1127 $112,450 $99,700 $66,388 $87,400 $118,225 +35.3% +5.1% Cumberland,WI-School District 1260 $145,000 $120,000 $150,000 $121,500 $145,700 +19.9% +0.5% Ellsworth,WI-School District 1659 $123,400 $111,501 $110,500 $135,000 $150,500 +11.5% +22.0% Elmwood,WI-School District 1666 $127,418 $65,750 $68,000 $82,500 $125,963 +52.7% -1.1% Frederic,WI-School District 1939 $80,375 $69,500 $71,500 $84,000 $93,250 +11.0% +16.0% Glenwood City,WI-School District 2198 $110,000 $105,000 $83,200 $101,500 $130,000 +28.1% +18.2% Grantsburg,WI-School District 2233 $115,000 $77,000 $75,000 $92,700 $95,500 +3.0% -17.0% Hudson,WI-School District 2611 $214,250 $185,000 $203,250 $225,000 $232,750 +3.4% +6.6% Luck,WI-School District 3213 $109,805 $90,000 $100,550 $91,700 $106,750 +16.4% -2.8% New Richmond,WI-School District 3962 $140,750 $118,500 $125,000 $144,500 $159,900 +10.7% +13.6% Osceola,WI-School District 4165 $131,000 $131,000 $140,250 $138,200 $155,000 +12.2% +18.3% Pepin,WI-School District 4270 $174,000 $92,000 $88,500 $89,500 $152,350 +70.2% -12.4% Plum City,WI-School District 4459 $115,000 $164,250 $101,000 $98,500 $130,000 +32.0% +13.0% Prescott,WI-School District 4578 $179,900 $162,000 $180,000 $189,000 $195,375 +3.4% +8.6% River Falls,WI-School District 4893 $180,000 $155,000 $168,000 $177,000 $182,500 +3.1% +1.4% Somerset,WI-School District 5432 $149,450 $137,000 $134,000 $168,500 $189,900 +12.7% +27.1% i Spring Valley,WI-School District 5586 $119,750 $132,500 $102,500 $137,700 $142,500 +3.5% +190% St.Croix Central,WI-School District 2422 $139,900 $148,500 $125,450 $170,000 $175,000 +2.9% +25.1% St.Croix Falls,WI-School District 5019 $97,250 $100,000 $92,000 $121,000 $105,000 -13.2% +8.0% Turtle Lake,WI-School District 5810 $135,000 $121,952 $133,500 $145,000 $137,500 -5.2% +1.9% Unity,WI-School District 238 $121,750 $133,250 $122,000 $125,000 $132,450 +6.0% +8.8% current as rf i anuzr�9 2015 All data from NorthstwPALS F,,.,,,?d b� 10h Frsea,ch and 1,1arketmy 21 Annual Financial ' ' City of Centerville Centerville, Minnesota For the Year Ended December 31, 2014 ABDO EICK & MMRSLLP CaiyW PLWk Ammmnis&cam CITY OF CENTERVILLE CENTERVILLE, MINNESOTA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2014 CITY OF CENTERVILLE,MINNESOTA ANNUAL FINANCIAL REPORT TABLE OF CONTENTS FOR THE YEAR ENDED DECEMBER 31,2014 Page No. INTRODUCTORY SECTION Elected and Appointed Officials 5 FINANCIAL SECTION Independent Auditor's Report 9 Management's Discussion and Analysis 13 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 27 Statement of Activities 28 Fund Financial Statements Governmental Funds Balance Sheet 32 Reconciliation of the Balance Sheet to the Statement of Net Position 35 Statement of Revenues,Expenditures and Changes in Fund Balances 36 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances to the Statement of Activities 38 General Fund Statement of Revenues,Expenditures and Changes in Fund Balances-Budget and Actual 39 Proprietary Funds Statement of Net Position 40 Statement of Revenues,Expenses and Changes in Net Position 43 Statement of Cash Flows 44 Notes to the Financial Statements 47 Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 66 Combining Statement of Revenues,Expenditures and Changes in Fund Balances 67 General Fund Schedule of Revenues,Expenditures and Changes in Fund Balances-Budget and Actual 69 Debt Service Funds Combining Balance Sheet 74 Combining Schedule of Revenues,Expenditures and Changes in Fund Balances 76 Summary Financial Report Revenues and Expenditures for General Operations-Governmental Funds 78 OTHER REQUIRED REPORT Independent Auditor's Report on Minnesota Legal Compliance 81 Schedule of Findings and Responses 83 -1- INTRODUCTORY SECTION CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -3- CITY OF CENTERVILLE,MINNESOTA ELECTED AND APPOINTED OFFICIALS FOR THE YEAR ENDED DECEMBER 31,2014 ELECTED Name Title Term Expires Thomas Wilharber Mayor 01/03/17 Steve King Council Member 01/01/19 Ben Fehrenbacher Council Member 01/02/17 Jeff Paar Council Member 01/02/17 D.Love Council Member 01/01/19 APPOINTED Mike Ericson City Administrator Teresa Bender City Clerk Ellie Paulseth Finance Director -5- FINANCIAL SECTION CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -7- ABDO SICK & MEYERSLU Certified Public Accountants&Consultants 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 31,2014,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 an opinion on these financial statements based on our audit. 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 appropriate in 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 presentation of the financial statements. 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 31,2014,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 accordance with accounting principles generally accepted in the United States of America. 5201 Eden Avenue,Sude 250 Edina,MN 55436 952.835.9090 I Fax 952.635.3261 -9- 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 13 be 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's basic 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 statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America.In our opinion,the combining and individual fund financial statements and schedules are fairly stated,in all material respects,in relation to the basic financial statements as a whole. The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements,and accordingly,we do not express an opinion or provide any assurance on it. OL4 f U? ABDO,EICK&MEYERS,LLP Minneapolis,Minnesota March 26,2015 People +Process. Going Beyond,, -11- Nuifibers 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 31,2014. Financial Highlights • The assets of the City exceeded its liabilities at the close of the most recent fiscal year by$21,944,747(net position). Of this amount,$4,826,082(unrestricted net position)may be used to meet the City's ongoing obligations to citizens and creditors. • The City's total net position increased$258,565. A further breakdown of net position is chronicled under Government wide financial statement analysis. • At the end of the current fiscal year,unassigned fund balance for the General fund was$1,317,741,or 67.7 percent of total General fund expenditures. • The City's total debt decreased$856,981,during the current fiscal year. The decrease was mainly due to regularly scheduled debt payments. -13- 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 Statements Information Government- Fund Notes to the wide Financial Financial Financial Statements Statements Statements Summary0 0 Detail -14- Figure 2 summarizes the major features of the City's financial statements,including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management's discussion and analysis 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 Statements Governmental Funds Proprietary Funds Scope Entire City government(except The activities of the City that are Activities the City operates fiduciary funds)and the City's not proprietary or fiduciary, such similar to private businesses, component units as police,fire and parks such as the water and sewer system Required financial • Statement of Net Position • Balance Sheet • Statements of Net statements . Statement of Activities • Statement of Revenues, Position Expenditures,and Changes in • Statements of Revenues, Fund Balances Expenses and Changes in Net Position • Statements of Cash Flows Accounting Basis and Accrual accounting and Modified accrual accounting and Accrual accounting and measurement focus economic resources focus current financial resources focus economic resources focus Type of asset/liability All assets and liabilities,both Only assets expected to be used All assets and liabilities,both information financial and capital,and short- up and liabilities that come due financial and capital,and term and long-term during 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 Information cash is received or paid the 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 information during year,regardless of when received during or soon after the during the year,regardless of cash is received or paid end of the year;expenditures when cash is received 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 statements are 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 position presents 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 position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,regardless of the timing of related cashflows. Thus,revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods(e.g.,uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish 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 27 of this report. -15- Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City,like other State and local governments,uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However,unlike the government-wide financial statements,governmental fund financial statements focus on near-term inflows and outflows of spendable resources,as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements,it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so,readers may better understand the long-term impact 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 funds and governmental activities. The City maintains 12 individual governmental funds, five of which are Debt Service funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues,expenditures and changes in fund balances for the General,Debt Service,and Park funds. Data from the other five non-major governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements or schedules elsewhere 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 funds are used to report the same functions presented as business-type activities in 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 govemment-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 47 of 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 fund statements and schedules start on page 66 of this report. -16- Government-wide Financial Analysis As noted earlier,net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by$21,944,747 at the close of the most recent fiscal year. By far,the largest portion of the City's net position(64 percent)reflects its investment in capital assets(e.g.,land,buildings, machinery and equipment);less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens;consequently,these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt,it should be noted that the resources needed to repay this debt must be provided from other sources,since the capital assets themselves cannot be used to liquidate these liabilities. City of Centerville's Summary of Net position Governmental Activities Business-type Activities Increase Increase 2014 2013 (Decrease) 2014 2013 (Decrease) Assets Current and other assets $ 4,111,423 $ 4,394,334 $ (282,911) $ 4,322,341 $ 4,174,554 $ 147,787 Capital assets 15,616,337 16,220,214 (603,877) 7,042,412 6,852,137 190,275 Total assets 19,727,760 20,614,548 (886,788) 11,364,753 11,026,691 338,062 Liabilities Noncurrent liabilities outstanding 8,728,978 9,586,931 (857,953) 16,687 15,715 972 Other liabilities 376,643 336,438 40,205 25,458 15,973 9,485 Total liabilities 9,105,621 9,923,369 (817,748) 42,145 31,688 10,457 Net position Net investment in capital assets 6,921,337 6,907,384 13,953 7,042,412 6,852,137 190,275 Restricted for Future expansion - - - - 71,631 (71,631) Debt service 2,969,448 3,140,853 (171,405) - Street projects 165,065 237,170 (72,105) - - - Cable TV 20,403 15,061 5,342 - - - Unrestricted 545,886 390,711 155,175 4,280,196 4,071,235 208,961 Total net position $10,622,139 $10,691,179 $ (69,040) $11,322,608 $10,995,003 $ 327,605 An additional portion of the City's net position(14.4 percent)represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position($4,826,082)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. -17- Governmental activities. Governmental activities decreased the City's net position by$69,040. Key elements of this decrease are as follows: • Capital grants and contributions decrease due to the decrease in special assessment revenue. • Gain on sale of capital assets increased$177,377 due to the sale of the public works site. City of Centerville's Changes in Net position Governmental Activities Business-type Activities Increase Increase 2014 2013 (Decrease) 2014 2013 (Decrease) Revenues Program revenues Charges for services $ 325,007 $ 377,142 $ (52,135) $ 815,029 $ 813,789 $ 1,240 Operating grants and contributions 130,617 87,737 42,880 9,945 2,625 7,320 Capital grants and contributions 139,381 337,928 (198,547) 700,282 635,760 64,522 General revenues Taxes Property taxes/tax increments 1,734,708 1,742,742 (8,034) - _ _ Property taxes,levied for debt service 531,574 528.766 2,808 Othertaxes 3,123 6,280 (3,157) Grants and contributions not restricted to specific programs 54,875 1,431 53,444 - - _ Unrestricted investment earnings 33,080 6,862 26,218 52,169 35,094 17,075 Gain on sale of capital assets 187,377 10,000 177,377 - _ _ Total revenues 3,139,742 3,098,888 40,854 1,577,425 1,487,268 90,157 Expenses General government 397,951 454,273 (56,322) - - _ Public safety 1,068,879 1,056,282 12,597 Public works 1,232,431 1,188,538 43,893 _ Culture and recreation 203,022 203,827 (805) Economic development - 2,038 (2,038) _ Interest on long-term debt 306,499 265,393 41,106 - - _ Water - - - 749,629 487,667 261,962 Sewer - 418,082 481,188 (63,106) Storm Water - - - 82,109 103,829 (21,720) Total expenses 3,208,782 3,170,351 38,431 1,249,820 1,072,684 177,136 Increase(decrease)in net position before transfers (69,040) (71,463) 2,423 327,605 414,584 (86,979) Transfers 388,296 (388,296) - (388,296) 388,296 Change in net position (69,040) 316,833 (385,873) 327,605 26,288 301,317 Net position,January 1 10,691,179 10,374,346 316,833 10,995,003 10,968,715 26,288 Net position,December 31 $10,622,139 $10,691,179 $ (69,0401 $11,322,608 $10,995,003 $ 327,605 -18- 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 -- -- ----- -- — -—— --- I $1,000,000 i $800,000 $600,000 — I $400,000 -- $200,000 — -- — ---—- -- - _I $- General Public safety Public works Culture and Economic Interest on long- government recreation development term debt Ir Program revenues ■Expenses Revenues by Source- Governmental Activities Capital grants and contributions Taxes 5.8% Operating grants and 71.8% contributions 5.4% Charges for services 13.4% Unrestricted investment earnings Grants and 1.4% contributions not restricted 2.3% -19- Business-type activities. Business-type activities increased the City's net position by$327,605. Key elements of this increase are as follows: Expenses and Program Revenues -Business-type Activities $1,200,000 - - - - - -- - $1,000,000 -- -- — --- - -- --- --------- - ------ -- -- -- ----� $800,000 - -- - - -- - $600,000 ,- --- $400,000 } $200,000 -- - - -- - I Water Sewer Storm water IF Program revenues E Expenses Revenues by Source -Business-type Activities Investment earnings 3.3% Capital grants and contributions 44.7% III Charges for services 52.0% A further breakdown of expenses is shown below: Governmental Activities Business-type Activities Increase Increase 2014 2013 (Decrease) 2014 2013 (Decrease) Personnel costs $ 560,942 $ 539,125 $ 21,817 $ 196,411 $ 209,426 $ (13,015) Supplies 34,439 39,358 (4,919) 95,734 126,408 (30,674) Other charges for services 1,352,432 1,305,744 46,688 956,670 735,520 221,150 Capital outlay 509,231 35,891 473,340 - - - Total $ 2,457,044 $ 1,920,118 $ 536,926 $ 1,248,815 $ 1,071,354 $ 177,461 -20- Financial Analysis of the Government's Funds As noted earlier,the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows,outflows and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular,unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. Activity in the City's major governmental funds is discussed below: Fund Balance December 31, Increase Major Funds 2014 2013 (Decrease) General $ 1,319,013 $ 1,258,596 $ 60,417 The General fund balance has increased from 2013 and is strong moving into The fund also transferred out$223,000 during the year Debt Service $ 1,799,549 $ 1,832,254 $ (32,705) The Debt Service fund decreased$32,705. The City manages cash flow in all Debt Service funds and ensures adequate resources exist to fund future obligations. Park $(1,103,264) S(1,086,915) $ (16,349) The Park fund balance decreased about$16,000 from the previous year. Which is due to interest paid on the interfund loan. As of the end of the current fiscal year,the City's governmental funds reported combined ending fund balances of$2,481,639,a decrease of$184,098 in comparison with the prior year. Approximately 8.6 percent of this total amount or$214,477 constitutes unassigned fund balance,which is available for spending at the City's discretion. The remainder of fund balance($2,267,162)is not available for spending because it is either: 1)nonspendable($25,069),2)restricted($1,961,220,or 3)assigned($280,873)for the purposes described in the fund balance section of each balance sheet. Proprietaryfunds. The City's proprietary funds provide the same type of information found in the government-wide financial statements,but in more detail. Unrestricted net position of the enterprise funds at the end of the year amounted to$4,280,196. The total increase in net position for the funds was$327,605. 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 negative budget variance,and overall the General fund had a net positive budget variance of$50,889. Some of the significant variances can be briefly summarized as follows: • Total revenue had a positive budget variance of$52,535. All revenue categories had positive variances,except for interest on investments,property taxes,and fines and forfeitures.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$4,854. Total public safety and public works expenditures were over budget by a total of$33,484 and$23,601,respectively. Total general governmental expenditures were under budget by $56,533 • The city also transferred$223,000 from the General fund to other funds,which was$54,000 more than budget.City Council approved a transfer of$54,000 which was authorized to fund future capital asset acquisitions. -21- Capital Asset and Debt Administration Capital assets. The City's investment in capital assets for its governmental and business-type activities as of December 31,2014, amounts to$22,658,749(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: • Costs incurred for the 2013 street and utility project • The Royal Meadows watermain improvement project was started in 2014 • The City made improvements to Old Mill Road and other road improvements • Purchase of three vehicles for the Public Works Department Additional information on the City's capital assets can be found in Note 313 starting on page 56 of this report. City of Centerville's Capital Assets (net of depreciation) Governmental Activities Business-type Activities Increase Increase 2014 2013 (Decrease) 2014 2013 (Decrease) Land $ 3,179,023 $ 3,337,023 $ (158,000) $ 200,655 $ 200,655 $ - Construction inprogress 1,320,356 1,229,234 91,122 705,124 225,983 479,141 Buildings 860,402 897,692 (37,290) 356,730 365,010 (8,280) Infrastructure 9,952,484 10,487,341 (534,857) 5,712,861 5,963,361 (250,500) Machinery and equipment 304,072 268,924 35,148 67,042 97,128 (30,086) Total $15,616,337 $16,220,214 _L_±03 877) $ 7,042,412 $ 6,852,137 $ 190,275 Street maintenance program.Beginning in 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 began in 2014 to be paid from funds accumulated in a revolving improvement account. A minimal special assessment of around 5500 per residential lot will cover approximately 20 percent 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. -22- Long-term debt. At the end of the current fiscal year,the City had total bonded debt outstanding of$8,695,000.While all of the City's bonds have revenue streams,they are all backed by the full faith and credit of the City. City of Centerville's Outstanding Debt Governmental Activities Business-type Activities Increase Increase 2014 2013 (Decrease) 2014 2013 (Decrease) General obligation bonds $ 8,695,000 $ 9,550,000 $ (855,000) $ - $ - $ _ Compensated absences payable 33,978 36,931 (2,953) 16,687 15,715 972 Total $ 8,728,978 $ 9,586,931 _L_(857 $ 16,687 $ 15,715 $ 972 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$285,605,600 which calculates to a debt margin of$8,568,168. 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$395,000 of general obligation debt outstanding leaving a debt margin of$8,173,168. Additional information on the City's long-term debt can be found in Note 3D starting on page 59 of this report. Economic Factors and Next Year's Budgets and Rates The area economy continues to show signs of improvement. Property values for taxes payable in 2015 increased for the first time in several years. The City's net tax capacity increased 13 percent for taxes payable in 2015,compared to 2014. Even though the City increased its property tax levy by 4.9 percent for 2015,tax capacity rates decreased by 8.6 percent due to the increased value in the tax base. Most taxpayers,however,still realized an increase in City property taxes as a result of the increased value of their properties. The City's General fund Budget was increased for 2015 by 5.7 percent;however,the General fund levy was only increased 3.3 percent due to expected increases in building permit revenue and local government aid.Additional debt service obligations accounted for the remainder of the increase,resulting in an overall levy increase of 4.9 percent.The debt service levy increased by 10.2 percent,or$54,500,primarily due to the structuring of the 2011 A General Obligation Bond's payment schedule. The increase in General fund expenditures was primarily related to an increase in the police protection contract,employee cost-of- living increases of 2.5 percent,increased workers'compensation premiums,a$15,000 increase in the parks and recreation appropriation,and a$33,000 increase in capital outlay appropriations. In addition,there was a 19.5 percent,or$44,539,increase in the fire protection budget. However,that was due primarily to increased pension expenditures that will be offset by State funding. 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 provided in this report or requests for additional financial information should be addressed to the City Administrator,City of Centerville, 1880 Main Street.Centerville, Minnesota.55038. -23- GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -25- CITY OF CENTERVILLE,MINNESOTA STATEMENT OF NET POSITION DECEMBER 31,2014 Governmental Business-type Activities Activities Total ASSETS Cash and temporary investments $ 3,810,172 $ 2,355,478 $ 6,165,650 Receivables Accrued interest 5,480 3,416 8,896 Taxes 54,081 - 54,081 Accounts 3,871 157,565 161,436 Special assessments 1,322,675 659,264 1,981,939 Due from other governments 31,886 - 31,886 Internal balances (1,141,811) 1,141,811 - Inventories - 4,731 4,731 Prepaid items 25,069 76 25,145 Capital assets Land and construction and progress 4,499,379 905,780 5,405,159 Depreciable assets(net of accumulated depreciation) 11,116,958 6,136,632 17,253,590 TOTAL ASSETS 19,727,760 11,364,753 31,092,513 LIABILITIES Accounts and contracts payable 113,685 12,611 126,296 Accrued salaries payable 24,974 1,656 26,630 Due to other governments 8,348 11,191 19,539 Accrued interest payable 119,829 - 119,829 Deposits payable 109,807 - 109,807 Noncurrent liabilities Due within one year 908,373 15,610 923,983 Due in more than one year 7,820,605 1,077 7,821,682 TOTAL LIABILITIES 9,105,621 42,145 9,147,766 NET POSITION Net investment in capital assets 6,921,337 7,042,412 13,963,749 Restricted for Debt service 2,969,448 - 2,969,448 Street projects 165,065 165,065 Cable TV 20,403 - 20,403 Unrestricted 545,886 4,280,196 4,826,082 TOTAL NET POSITION $ 10,622,139 $ 11,322,608 $ 21,944,747 The notes to the financial statements are an integral part of this statement. -27- CITY OF CENTERVILLE,MINNESOTA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31,2014 Program Revenues Operating Capital Grants Charges for Grants and and Functions/Programs Expenses Services Contributions Contributions Governmental activities General government $ 397,951 $ 45,820 $ - $ - Public safety 1,068,879 226,087 60,971 - Public works 1,232,431 34,047 18,613 139,381 Culture and recreation 203,022 14,793 - - Economic development - 4,260 - Interest on long-term debt 306,499 - 51,033 - Total governmental activities 3,208,782 325,007 130,617 139,381 Business-type activities Water 749,629 298,194 9,945 681,164 Sewer 418,082 411,218 - 19,118 Storm water 82,109 105,617 - - Total business-type activities 1,249,820 815,029 9,945 700,282 Total $ 4,458,602 _$__I 140036 $ 140,562 $ 839,663 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 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, -28- Net(Expenses)Revenues and Changes in Net Position Governmental Business-type Activities Activities Total $ (352,131) $ $ (352,131) (781,821) (781,821) (1,040,390) (1,040,390) (188,229) - (188,229) 4,260 - 4,260 (255,466) - (255,466) (2,613,777) - (2,613,777) - 239,674 239,674 - 12,254 12,254 - 23,508 23,508 - 275,436 275,436 (2,613,777) 275,436 (2,338,341) 1,734,708 - 1,734,708 531,574 531,574 3,123 3,123 54,875 - 54,875 33,080 52,169 85,249 187,377 - 187,377 2,544,737 52,169 2,596,906 (69,040) 327,605 258,565 10,691,179 10,995,003 21,686,182 $ 10,622,139 $ 11,322,608 $ 21,944,747 -29- FUND FINANCIAL STATEMENTS CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -31- CITY OF CENTERVILLE,MINNESOTA BALANCESHEET GOVERNMENTAL FUNDS DECEMBER 31,2014 101 300's 402 Debt General Service Park ASSETS Cash and temporary investments $ 1,444,584 $ 1,800,778 $ 38,491 Receivables Accrued interest 2,084 2,599 56 Taxes 54,081 - - Accounts 3,871 - Special assessments 17,267 1,290,281 - Due from other governments 21,054 - Prepaid items 1,272 23,797 - TOTAL ASSETS $ 1,544,213 $ 3,117,455 $ 38,547 LIABILITIES Accounts and contracts payable $ 42,265 $ - $ - Deposits payable 82,007 27,800 - Accrued salaries payable 24,843 - - Due to other funds - - 65,935 Due to other governments 7,970 378 - Advances from other funds - - 1,075,876 TOTAL LIABILITIES 157,085 28,178 1,141,811 DEFERRED INFLOWS OF RESOURCES Unavailable revenue-property taxes 54,081 - - Unavailable revenue-special assessments 14,034 1,289,728 - TOTAL DEFERRED INFLOWS OF RESOURCES 68,115 1,289,728 - FUND BALANCES Nonspendable 1,272 23,797 Restricted - 1,775,752 - Assigned - _ _ Unassigned 1,317,741 - (1,103,264) TOTAL FUND BALANCES 1,319,013 1,799,549 (1,103,264) TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE $ 1,544,213 $ 3,117,455 $ 38,547 The notes to the financial statements are an integral part of this statement. -32- Other Total Governmental Governmental Funds Funds $ 526,319 $ 3,810,172 741 5,480 - 54,081 - 3,871 15,127 1,322,675 10,832 31,886 - 25,069 $ 553,019 $ 5,253,234 $ 71,420 $ 113,685 - 109,807 131 24,974 - 65,935 8,348 - 1,075,876 71,551 1,398,625 - 54,081 15,127 1,318,889 15,127 1,372,970 - 25,069 185,468 1,961,220 280,873 280,873 - 214,477 466,341 2,481,639 $ 553,019 $ 5,253,234 -33- CITY OF CENTERVILLE,MINNESOTA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS DECEMBER 31,2014 Total fund balances-governmental $ 2,481 639 Amounts reported for the governmental activities in the statement of net position are different because Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets 22,902,842 Less accumulated depreciation (7,286,505) 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 (8,695,000) Compensated absences payable (33,978) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are unavailable in the funds. Delinquent taxes receivable 54,081 Special assessments receivable 1,318 889 Governmental funds do not report a liability for accrued interest until due and payable (119,829) Total net position-governmental activities $ 10,622,139 The notes to the financial statements are an integral part of this statement. -35- CITY OF CENTERVILLE,MINNESOTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31,2014 101 300's 402 Debt General Service Park REVENUES Taxes General property $ 1,733,187 $ 531,574 $ - Gambling 3,123 - _ Licenses and pen-nits 108,921 - - Intergovernmental 259,763 51,033 - Charges for services 6,520 - Fines and forfeitures 23,043 - Special assessments 18,618 222,136 - Interest on investments 4,050 21,153 525 Miscellaneous 25,254 - _ TOTAL REVENUES 2,182,479 825,896 525 EXPENDITURES Current General government 467,067 - - Public safety 1,066,100 Public works 325,201 Culture and recreation 84,958 - Capital outlay General government _ _ Public works Culture and recreation 3,236 - Debt service Principal - 855,000 - Interest and other - 301,478 16,874 TOTAL EXPENDITURES 1,946,562 1,156,478 16,874 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES 235,917 (330,582) (16,349) OTHER FINANCING SOURCES(USES) Sale of capital assets 47,500 297,877 Transfers in _ Transfers out (223,000) - TOTAL OTHER FINANCING SOURCES(USES) (175,500) 297,877 NET CHANGE IN FUND BALANCES 60,417 (32,705) (16,349) FUND BALANCES,JANUARY 1 1,258,596 1,832,254 (1,086,915) FUND BALANCES, DECEMBER 31 $ 1,319,013 $ 1,799,549 $ (1,103,264) The notes to the financial statements are an integral part of this statement. -36- Other Total Govemmental Governmental Funds Funds $ $ 2,264,761 3,123 108,921 310,796 6,515 13,035 - 23,043 69,637 310,391 7,352 33,080 10,832 36,086 94,336 3,103,236 - 467,067 1,066,100 - 325,201 5,616 90,574 1,186 1,186 505,995 505,995 - 3,236 855,000 - 318,352 512,797 3,632,711 (418,461) (529,475) - 345,377 223,000 223,000 - (223,000) 223,000 345,377 (195,461) (184,098) 661,802 2,665,737 $ 466,341 $ 2,481,639 -37- 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 31,2014 Net change in fund balances-governmental funds $ (184,098) 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 outlay 498,082 Depreciation expense (943,960) Governmental fund report a gain(loss)on sale of capital assets to the extent of cash exchanged,whereas the disposition of the assets book value is included in the total gain(loss)in the statement of activities Disposals (204,529) Depreciation of disposals 46,529 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 repayments 855,000 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. 11,853 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 1,521 Special assessments (152,392) 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 2,954 Change in net position-governmental activities $ (69,040) The notes to the financial statements are an integral part of this statement. -38- CITY OF CENTERVILLE,MINNESOTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31,2014 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Taxes General property $ 1,739,600 $ 1,739,600 $ 1,733,187 $ (6,413) Gambling 1,000 1,000 3,123 2,123 Licenses and permits 100,500 100,500 108,921 8,421 Intergovernmental 208,744 208,744 259,763 51,019 Charges for services 3,600 3,600 6,520 2,920 Fines and forfeitures 35,000 35,000 23,043 (11,957) Special assessments 18,000 18,000 18,618 618 Interest on investments 15,000 15,000 4,050 (10,950) Miscellaneous 8,500 8,500 25,254 16,754 TOTAL REVENUES 2,129,944 2,129,944 2,182,479 52,535 EXPENDITURES Current General government 499,600 499,600 467,067 32,533 Public safety 1,032,616 1,032,616 1,066,100 (33,484) Public works 271,600 271,600 325,201 (53,601) Culture and recreation 93,600 93,600 84,958 8,642 Capital outlay 54,000 54,000 3,236 50,764 TOTAL EXPENDITURES 1,951,416 1,951,416 1,946,562 4,854 EXCESS OF REVENUES OVER EXPENDITURES 178,528 178,528 235,917 57,389 OTHER FINANCING SOURCES(USES) Sale of capital assets - - 47,500 47,500 Transfers out (169,000) (169,000) (223,000) (54,000) TOTAL OTHER FINANCING SOURCES(USES) (169,000) (169,000) (175,500) (6,500) NET CHANGE IN FUND BALANCES 9,528 9,528 60,417 50,889 FUND BALANCES,JANUARY 1 1,258,596 1,258,596 1,258,596 - FUND BALANCES,DECEMBER 31 $ 1,268,124 $ 1,268,124 $ 1,319,013 $ 50,889 The notes to the financial statements are an integral part of this statement. -39- CITY OF CENTERVILLE,MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31,2014 Business-type Activities-Enterprise Funds 601 602 603 Nonmaj or Water Sewer Storm Water Totals ASSETS CURRENT ASSETS Cash and temporary investments $ 1,093,699 $ 1,172,992 $ 88,787 $ 2,355,478 Receivables Accrued interest 1,596 1,692 128 3,416 Accounts 50,445 83,708 23,412 157,565 Special assessments 5,362 - - 5,362 Due from other funds - 88,935 - 88,935 Inventories 4,731 - - 4,731 Prepaid items 38 38 - 76 TOTAL CURRENT ASSETS 1,155,871 1,347,365 112,327 2,615,563 NONCURRENT ASSETS Special assessments receivable 599,774 54,128 - 653,902 Advances to other funds - 1,097,861 - 1,097,861 Capital assets Land 72,255 124,000 4,400 200,655 Construction in progress 673,445 - 31,680 705,125 Buildings 138,000 276,000 - 414,000 Infrastructure 5,054,920 3,442,483 - 8,497,403 Machinery and equipment 269,367 96,742 1,019,542 1,385,651 Less accumulated depreciation (2,168,315) (1,771,039) (221,068) (4,160,422) Net capital assets 4,039,672 2,168,186 834,554 7,042,412 TOTAL NONCURRENT ASSETS 4,639,446 3,320,175 834,554 8,794,175 TOTAL ASSETS 5,795,317 4,667,540 946,881 11,409,738 LIABILITIES CURRENT LIABILITIES Accounts and contracts payable 11,017 1,075 519 12,611 Accrued salaries payable 647 647 362 1,656 Due to other funds - - 23,000 23,000 Due to other governments 1,350 9,841 - 11,191 Compensated absences payable-current 6,074 6,074 3,859 16,007 TOTAL CURRENT LIABILITIES 19,088 17,637 27,740 64,465 The notes to the financial statements are an integral part of this statement. -40- CITY OF CENTERVILLE,MINNESOTA STATEMENTS OF NET POSITION-CONTINUED PROPRIETARY FUNDS DECEMBER 31,2014 Business-type Activities-Enterprise Funds 601 602 603 Nonmaj or Water Sewer Storm Water Totals NONCURRENT LIABILITIES Advances from other funds - - 21,985 21,985 Compensated absences payable 340 340 - 680 TOTAL NONCURRENT LIABILITIES 340 340 21,985 22,665 TOTAL LIABILITIES 19,428 17,977 49,725 87,130 NET POSITION Net investment in capital assets 4,039,672 2,168,186 834,554 7,042,412 Unrestricted 1,736,217 2,481,377 62,602 4,280,196 TOTAL NET POSITION $ 5,775,889 $ 4,649,563 $ 897,156 $ 11,322,608 The notes to the financial statements are an integral part of this statement. -41- CITY OF CENTERVILLE,MINNESOTA STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31,2014 Business-type Activities-Enterprise Funds 601 602 603 NonmaJ or Water Sewer Storm Water Totals OPERATING REVENUES Charges for services $ 298,194 $ 411,218 $ 105,617 $ 815,029 OPERATING EXPENSES Salaries and benefits 80,010 77,874 38,527 196,411 Supplies 95,304 215 215 95,734 Other services and charges 367,200 25,300 9,040 401,540 Utilities 16,157 4,252 - 20,409 MCES-disposal charges - 195,304 - 195,304 Depreciation 190,958 115,137 33,322 339,417 TOTAL OPERATING EXPENSES 749,629 418,082 81,104 1,248,815 OPERATING INCOME(LOSS) (451,435) (6,864) 24,513 (433,786) NONOPERATING REVENUES(EXPENSES) Interest earnings 17,685 32,627 1,857 52,169 Intergovernmental 9,945 - - 9,945 Interest expense - - (1,005) (1,005) TOTAL NONOPERATING REVENUES(EXPENSES) 27,630 32,627 852 61,109 INCOME(LOSS)BEFORE TRANSFERS AND CONTRIBUTIONS (423,805) 25,763 25,365 (372,677) CAPITAL CONTRIBUTIONS 681,164 19,118 - 700,282 CHANGE IN NET POSITION 257,359 44,881 25,365 327,605 NET POSITION,JANUARY 1 5,518,530 4,604,682 871,791 10,995,003 NET POSITION,DECEMBER 31 $ 5,775,889 $ 4,649,563 $ 897,156 $ 11,322,608 The notes to the financial statements are an integral part of this statement. -43- CITY OF CENTERVILLE,MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31,2014 Business-type Activities-Enterprise Funds 601 602 603 Nonmajor Water Sewer Storm Water Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 331,985 $ 448,820 $ 109,542 $ 890,347 Payments to suppliers (475,389) (202,662) (9,736) (687,787) Payments to employees (79,419) (77,283) (38,162) (194,864) NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES (222,823) 168,875 61,644 7,696 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payment received on advance to other funds 5,121 - 5,121 Principal paid on advance from other funds - (21,995) (21,995) Interest paid on advance from other funds - (1,005) (1,005) Intergovernmental 9,945 - - 9,945 NET CASH PROVIDED(USED)BY NONCAPITAL FINANCING ACTIVITIES 9,945 5,121 (23,000) (7,934) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (447,462) - (82,230) (529,692) Intergovernmental 422,229 - 422,229 Hook up fees and unit charges received - 18,623 18,623 Special assessments received 105,357 3,300 108,657 NET CASH PROVIDED(USED)BY CAPITAL AND RELATED FINANCING ACTIVITIES 80,124 21,923 (82,230) 19,817 CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments 16,088 30,936 1,729 48,753 NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS (116,666) 226,855 (41,857) 68,332 CASH AND CASH EQUIVALENTS,JANUARY 1 1,210,365 946,137 130,644 2,287,146 CASH AND CASH EQUIVALENTS,DECEMBER 31 $ 1,093,699 $ 1,172,992 $ 88,787 $ 2,355,478 The notes to the financial statements are an integral part of this statement. -44- CITY OF CENTERVILLE,MINNESOTA STATEMENTS OF CASH FLOWS-CONTINUED PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31,2014 Business-type Activities-Enterprise Funds 601 602 603 Nonmajor Water Sewer Storm water Totals RECONCILIATION OF OPERATING(INCOME)LOSS TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES Operating income(loss) $ (451,435) $ (6,864) $ 24,513 $ (433,786) Adjustments to reconcile operating income(loss)to net cash provided(used)by operating activities Depreciation 190,958 115,137 33,322 339,417 (Increase)decrease in assets Accounts receivable 33,791 37,602 3,925 75,318 Inventories 38 - - 38 Prepaid items - 16,252 - 16,252 Increase(decrease)in liabilities Accounts payable 2,844 1,142 (481) 3,505 Accrued salaries payable 225 225 125 575 Compensated absences payable 366 366 240 972 Due to other governments 390 5,015 - 5,405 NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES $ (222,823) $ 168,875 $ 61,644 $ 7,696 The notes to the financial statements are an integral part of this statement. -45- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting entity The City of Centerville,Minnesota(the City),operates under the"Optional Pian 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 any component units. B. Government-wide and fund financial statements The government-wide financial statements(statement of net position and the statement of activities)report information on all of the nonfiduciary activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues,are reported separately from business-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 is offset 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 provided by a given function or segment and 2)grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds.Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement focus, basis of accounting and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements.Revenues are recorded when earned and expenses are recorded when a liability is incurred,regardless of the timing of related cash flows.Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.For this purpose,the City considers 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. -47- CITY OF CENTERVILLE,MINNESOTA NOTES TO T14E FINANCIAL STATEMENTS DECEMBER 31,2014 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 revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as 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 fund is 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 fund accounts 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 City reports the following major proprietary funds: The Water fund accounts for the activities of the water distribution system the City maintains. The Sewer fund accounts 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 nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the 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. -48- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 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. The proprietary funds'portion in the government-wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the Statement of Cash Flows. 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. -49- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 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 2014.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 The City Council 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 for delinquent 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 governmental fund special assessments receivable are offset by a deferred inflow of resources in the fund financial statements. Inventories 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. Prepaid items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. -50- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 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 Assets in Years Land improvements 4 to 25 Other improvements 10 to 20 Buildings and improvements 10 to 50 System improvements/infrastructure 20 to 50 Machinery and equipment 3 to 20 Vehicles 3 to 10 Other assets 3 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 not be 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 208 hours.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. -51- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note l: 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 as an 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 face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs,whether or not withheld from the actual debt proceeds received,are reported as debt service expenditures. 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 classifications are 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 or contributors; 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. The City Council 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. -52- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-CONTINUED Net Position Net position represents the difference between assets and liabilities.Net position is displayed in three components: a. Net investment in 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 balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors,grantors, laws or regulations of other governments. c. Unrestricted net position-All other net position balances that do not meet the definition of"restricted"or"net investment in capital assets". Note 2: STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY A. Budgetary information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General fund.All annual appropriations lapse at fiscal year end. The City does not use encumbrance accounting. In May of each year,all departments of the City submit requests for appropriations to the City Administrator so that a budget may be prepared.Before September 15th,the proposed budget is presented to the City Council for review. The City Council holds public hearings and a final budget is prepared and adopted in early December. The appropriated budget is prepared by fund, function and department. The City's department heads,with the approval of the City Administrator, may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the City Council. The legal level of budgetary control is the department level.There were no budget amendments made during 2014. B. Deficit fund equity The following funds had a deficit fund balance as of December 31,2014: Fund Amount Major Park S 1,103,264 The Park fund deficit will be eliminated with transfers in future years. -53- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 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 event of a bank failure,the City's deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the City Council,the City maintains deposits at those depository banks,all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance,surety bond,or collateral.The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes: • United States government Treasury bills,Treasury notes,Treasury bonds; • Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; • General obligation securities of any state or local government with taxing powers which is rated"A"or better by a national bond rating service,or revenue obligation securities of any state or local government with taxing powers which is rated"AA"or better by a national bond rating service; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated"AA"or better by Moody's Investors Service,Inc.,or Standard&Poor's Corporation;and • Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank,or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral.The selection should be approved by the City. At year end,the City's carrying amount of deposits was$3,974,049,and the bank balance was$4,052,766.Of the bank balance,$500,000 was covered by federal depository insurance and the remaining balance was covered by collateral held by the City's agent in the City's name. -54- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 3: DETAILED NOTES ON ALL FUNDS-CONTINUED Investments As of December 31,2014,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 Credit Segmented Concentration and Quality/ Time of Carrying Investment Type Ratings(1) Distribution(2) Credit Risk Amount Pooled investments Broker money market N/A N/A N/A $ 43,033 Nonpooled investments Brokered CD's N/A 1 to 3 years N/A 690,696 Brokered CD's N/A more than 3 years N/A 1,457,672 Total Brokered CD's 2,148,368 Total investments $ 2,191,401 (1) Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk. (2) Interest rate risk is disclosed using the segmented time distribution method. N/A Indicates not applicable or available. The investments of the City are subject to the following risks: • Credit Risk.The credit risk for investments is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable,indicate associated credit risk. Minnesota statutes limit the City's investments to the list on page 49 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 GE Capital Bank CD(22.2 percent),Comenity Bank CD(9.2 percent)Discover Bank CD (11.2 percent)Barclays Bank CD(11.1 percent),AMEX Centurion CD(11.2 percent), Sallie May Bank CD (11.1 percent),HSBC Bank CD(11.1 percent)and Citi Bank CD(11.1 percent) • Interest Rate Risk. The interest rate risk for investments is the risk that changes in interest rates will adversely affect the fair value of an investment. The City does not currently have a formal investment policy that addresses the above mentioned risks. A reconciliation of cash and temporary investments as shown on the statement of net position for the City follows: Total Carrying amount of deposits $ 3,974,049 Investments 2,191,401 Petty cash 200 Total $ 6,165,650 -55- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 3: DETAILED NOTES ON ALL FUNDS-CONTINUED B. Capital assets Capital asset activity for the governmental activities for the year ended December 31,2014 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities Capital assets not being depreciated Land $ 3,337,023 $ - $ (158,000) $ 3,179,023 Construction in progress 1,229,234 91,122 - 1,320,356 Total capital assets not being depreciated 4,566,257 91,122 (158,000) 4,499,379 Capital assets being depreciated Buildings 1,627,438 - 1,627,438 Infrastructure 15,582,869 326,733 - 15,909,602 Machinery and equipment 832,724 80,228 (46,529) 866,423 Total capital assets being depreciated 18,043,031 406,961 (46,529) 18,403,463 Less accumulated depreciation for Buildings (729,746) (37,290) - (767,036) Infrastructure (5,095,528) (861,590) (5,957,118) Machinery and equipment (563,800) (45,080) 46,529 (562,351) Total accumulated depreciation (6,389,074) (943,960) 46,529 (7,286,505) Total capital assets being depreciated,net 11,653,957 (536,999) - 11,116,958 Governmental activities capital assets,net $ 16,220,214 $ (445,877) $ (158,000) $ 15,616,337 Depreciation expense was charged to functions/programs of the governmental activities as follows: Governmental activities General government $ 14,245 Public safety 2,339 Public works 818,252 Culture and recreation 109,124 Total depreciation expense-governmental activities $ 943,960 -56- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 3: DETAILED NOTES ON ALL FUNDS-CONTINUED Capital asset activity for the business-type activities for the year ended December 31,2014 was as follows: Beginning Ending Balance Increases Decreases Balance Business-type activities Capital assets not being depreciated Land $ 200,655 $ - $ - $ 200,655 Construction in progress 225,983 479,141 - 705,124 Total capital assets not being depreciated 426,638 479,141 - 905,779 Capital assets being depreciated Buildings 414,000 - - 414,000 Infrastructure 9,466,395 50,551 - 9,516,946 Machinery and equipment 366,108 - - 366,108 Total capital assets being depreciated 10,246,503 50,551 - 10,297,054 Less accumulated depreciation for Buildings (48,990) (8,280) - (57,270) Infrastructure (3,503,034) (301,051) - (3,804,085) Machinery and equipment (268,980) (30,086) - (299,066) Total accumulated depreciation (3,821,004) (339,417) - (4,160,421) Total capital assets being depreciated,net 6,425,499 (288,866) - 6,136,633 Business-type activities capital assets,net $ 6,852,137 $ 190,275 $ - $ 7,042,412 Depreciation expense was charged to functions/programs of the business-type activities as follows: Business-type activities Water $ 190,958 Sewer 115,137 Storm water 33,322 Total depreciation expense-business-type activities $ 339,417 -57- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 3: DETAILED NOTES ON ALL FUNDS-CONTINUED Construction commitment As of December 31,2014,the City has signed contracts in place for one construction project. The following summarizes this commitment: Spent Remaining Project to Date Commitment 2013 Street and Utility Improvements $1,395,538 $ 150,658 C. Interfund balances and transfers The composition of internal balance as of December 31,2014 is as follows: Receivable Fund Payable Fund Amount Due to/from other funds Sewer Park $ 65,935 Sewer Storm water 23,000 Total due to/from other funds 88,935 Advance to/from other funds Sewer Park 1,075,876 Sewer Storm water 21,985 Total advances to/from other funds 1,097,861 Subtotal of interfund balances 1,186,796 Interfund activity eliminated from government-wide statements (44,985) Total internal balances-government-wide statements $ 1,141,811 All of the above interfund advances have associated amortization schedules,of which current payments are being made. Interfund transfers The composition of interfund transfers for the year ended December 31,2014 is as follows: Transfer In Other Fund Governmental Transfer out General $ 223,000 • A transfer of$54,000 from the General fund to other government funds is for future replacement of equipment, vehicles,and computers in the near future. • A transfer of$169,000 from the General fund to other government funds is for future street maintenance projects. _58- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 3: DETAILED NOTES ON ALL FUNDS-CONTINUED D. Long-term debt General obligation bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for 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. Authorized Interest Issue Maturity Balance at Description and Issued Rate Date Date Year End G.O.Improvement Bonds of 2009A S 3,715,000 2.65-5.60 % 08/19/09 08/01/25 S 3,190,000 G.O.Crossover Bonds of 2009B 2,430,000 2.00-3.00 10/29/09 09/01/18 1,770,000 G.O.Improvement Bonds of 2011A 2,760,000 .70-2.45 04/14/11 07/01/19 1,855,000 G.O.Improvement Refunding Bonds of 2012A 515,000 1.00- 1.70 06/14/12 02/01/21 395,000 G.O.Improvement Bonds of 2013A 1,465,000 1.63 -3.00 06/01/13 02/01/29 1,485,000 Total General Obligation Improvement Bonds S 8,695,000 Annual debt service requirements for general obligation improvement bonds are as follows: General Obligation Improvement Bonds Year Ending Governmental Activities December 31, Principal Interest Total 2015 S 880,000 S 276,077 S 1,156,077 2016 895,000 255,532 1,150,532 2017 920,000 231,464 1,151,464 2018 1,935,000 190,040 2,125,040 2019 730,000 149,195 879,195 2020-2024 2,210,000 443,792 2,653,792 2025-2029 1,125,000 67,274 1,192,274 Total $ 8,695,000 S 1,613,374 S 10,308,374 -59- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 3: DETAILED NOTES ON ALL FUNDS-CONTINUED Changes in long-term liabilities During the year ended December 31,2014,the following changes occurred in noncurrent liabilities: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental activities G.O Bonds $ 9,550,000 $ - $ (855,000) $ 8,695,000 $ 880,000 Compensated absences payable 36,931 38,312 (41,265) 33,978 28,373 Governmental activities long-term liabilities $ 9,586,931 $ 38,312 $ (896,265) $ 8,728,978 $ 908,373 Business-type activities Compensated absences payable $ 15,715 $ 18,075 $ (17,103) $ 16,687 $ 15,610 E. Fund equity At December 31,2014,portions of the City's fund balance are not available for appropriation due to not being in spendable form(Nonspendable),legal restrictions(Restricted),policy and/or intent(Assigned). The following is a summary of the components of fund balance: Other Debt Governmental General Service Park Funds Total Nonspendable Prepaid items $ 1,272 $ 23,797 $ - $ $ 25,069 Restricted for Debt service - 1,775,752 - - 1,775,752 Street projects - - - 165,065 165,065 Cable TV - - - 20,403 20,403 Assigned for Street projects - - - 8,365 8,365 Street maintenance - - - 247,653 247,653 Capital equipment - - - 9,017 9,017 Capital projects - - - 15,838 15,838 Unassigned 1,317,741 - (1,103,264) - 214,477 Total $ 1,319,013 $ 1,799,549 $(1,103,264) $ 466,341 $ 2,481,639 -60- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 4: DEFINED BENEFIT PENSION PLANS-STATEWIDE A. Plan description All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota(PERA).PERA administers the General Employees Retirement Fund (GERF),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 members are 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 five 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 Method 1,the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year.The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year.Under Method 2,the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. GERF members hired prior to July 1, 1989 whose annuity is calculated using Method 1,a full annuity is available when age plus years of service equal 90.Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989.A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement.A single-life annuity is a lifetime annuity that ceases upon the death of the retiree--no survivor annuity is payable.There are also various types of joint and survivor annuity options available which will be payable over joint lives.Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age.Refunds of contributions are available at any time to members who leave public service,but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF. That report may be obtained on the Internet at www.mnpera.org,by writing to PERA at 60 Empire Drive,Suite 200,St.Paul,Minnesota 55103-2088 or by calling(651)296-7460 or(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 to contribute 9.10 percent and 6.25 percent,respectively,of their annual covered salary in 2014. In 2014,the City was required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan members and 7.25 percent for Coordinated Plan members. The City's contributions to the Public Employees Retirement Fund for the years ended December 31,2014,2013 and 2012 were$35,215,$38,179,and$38,899,respectively.The City's contributions were equal to the contractually required contributions for each year as set by Minnesota statute.Contribution rates will increase on January 1,2015 in the Coordinated Plan(6.50 percent for members and 7.50 percent for employers)and the Police and Fire Fund(10.80 percent for members and 16.20 percent for employers). -61- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 5: JOINT POWERS AGREEMENTS A. Centennial Fire District The Centennial Fire District(the District)was formed under the authority of Minnesota statutes 471.59 in 1985 by agreement of the member cities of Centerville,Lino Lakes and Circle Pines.The district was created to provide fire protection services to the residents of the member cities.The District is managed through a three tier system consisting of a Fire Chief,a Steering Committee,and the City Councils of the member cities.The Fire Chief is an appointed position.Each member city appoints two commissioners. One of these commissioners must be an elected official of the City. Each member city contributes funds to cover the budgeted costs of operations as determined by the commissioners. The amount of contributions required by each member is based on each city's population,number of fire calls,and assessed valuations. Contributions made by member cities for 2013,the most recent data available,were as follows: City of Centerville $ 132,244 15.11 % City of Circle Pines 154,946 17.70 City of Lino Lakes 588,208 67.19 Total $ 875,398 100.00 % Volunteer firefighters of the District are members of the Centennial Firefighter's Relief Association(the Association). The Association is a single-employer pension plan(the Plan)that operates under the provisions of Minnesota statutes 69 and 424,as amended.It is governed by a board of six officers and trustees elected by the members of the Association for three-year terms. The ex-officio,non-voting members of the Board of trustees are two representatives from the Centennial Fire Steering Committee and the Fire Chief of the District. The Association issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Centennial Fire District 7741 Lake Drive,Lino Lakes,MN 55014. 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 2013,the most recent data available,were as follows: City of Centerville $ 665,597 31.13 % City of Circle Pines 848,672 39.69 City of Lexington 624,173 29.19 Total $ 2,138,442 100.00 % -62- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 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 IA. The following information is from the financial statements of the District and the Department as of December 31,2013, the most recent audited information available at the time of this report.The amounts reported for the District are those presented in its government-wide financial statements. These financial statements are available for viewing at the Centerville City hall. Centennial Centennial Lakes Police Fire District Department Total assets S 1,911,866 S 598,852 Total liabilities 150,937 317,391 Total net position 1,760,929 281,461 Total revenue 1,239,594 2,219,442 Total expenses 1,066,861 2,275,386 Volunteer firefighters of the District are members of the Centennial Firefighter's Relief Association(the Association). The Association is a single-employer pension plan(the Plan)that operates under the provisions of Minnesota statutes 69 and 424,as amended.It is governed by a board of six officers and trustees elected by the members of the Association for three-year terms. The ex-officio,non-voting members of the Board of trustees are two representatives from the Centennial Fire Steering Committee and the Fire Chief of the District. The Association issues a publicly available financial report that includes financial statements and required supplementary information.The report may be obtained by writing to the Centennial Fire District 7741 Lake Drive, Lino Lakes,MN 55014. 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. E. 2151 Avenue Street and utility improvements The City entered into a joint agreement with the City of Lino Lakes for the reconstruction of 21 st Avenue Street and related utility improvements.The cities of Centerville and Lino Lakes will jointly participate and share costs related to the project.The City of Lino Lakes will administer the project and bill the City of Centerville for their share of the costs. -63- CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 6: OTHER INFORMATION A. Risk management The City is exposed to various risks of loss related to torts;theft of, damage to and destruction of assets;errors and omissions;injuries to employees;and natural disasters for which the City carries insurance.The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust(LMCIT),which is a risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation and property and casualty insurance.The LMCIT is self-sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.Liabilities,if any,include an amount for claims that have been incurred but not reported(IBNRs).The City's management is not aware of any incurred but not reported claims. B. Legal debt margin In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of 3 percent of the market value of taxable property within the City.Net debt is payable solely from ad valorem taxes and,therefore, excludes debt financed partially or entirely by special assessments,Enterprise fund revenues or tax increments.The market value of taxable property is$285,605,600 which leaves a debt margin of$8,568,168. Currently the City has $395,000 of general obligation debt outstanding,leaving a debt margin of$8,173,168. C. Subsequent event On January 15,2015,the City issued$1,385,000 General Obligation Improvement Refunding Bonds, Series 2015A.The refunding bonds will mature on February 1,2025 and carries an average coupon rate of 1.81 percent. The issue will refund the General Obligation Improvement Crossover Refunding Bond, Series 2009B. -64- COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -65- CITY OF CENTERVILLE,MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31,2014 Special Revenue Fund Capital Project Funds 614 401 414 409 452 Total Revolving Capital 2013 Nonmajor Street Pedestrian Equipment Street Governmental Cable T.V Fund Trail Ways Revolving Project Funds ASSETS Cash and temporary investments $ 9,715 $ 247,898 $ 15,815 9,004 $ 243,887 $ 526,319 Receivables Accrued interest 14 358 23 13 333 741 Special assessments - 15,127 - - - 15,127 Due from other governments 10,832 - - - 10,832 TOTAL ASSETS $ 20,561 $ 263,383 $ 15,838 $ 9,017 $ 244,220 $ 553,019 LIABILITIES Accounts and contracts payable $ 27 $ 603 $ $ $ 70,790 $ 71,420 Accrued salaries payable 131 - - 131 TOTAL LIABILITIES 158 603 70,790 71,551 DEFERRED INFLOWS OF RESOURCES Unavailable revenue-special assessments - 15,127 - 15,127 FUND BALANCES Restricted for Cable TV 20,403 - - 20,403 Street projects - 165,065 165,065 Assigned for Street projects - 8,365 8,365 Street maintenance 247,653 - 247,653 Capital equipment - - 9,017 9,017 Trail projects 15,838 - - 15,838 TOTAL FUND BALANCES 20,403 247,653 15,838 9,017 173,430 466,341 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE $ 20,561 $ 263,383 $ 15,838 $ 9,017 $ 244,220 $ 553,019 -66- CITY OF CENTERVILLE,MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31,2014 Special Revenue Fund Capital Project Funds 614 401 414 409 452 Total Revolving Capital 2013 Nonmajor Street Pedestrian Equipment Street Governmental Cable T.V. Fund Trail Ways Revolving Project Funds REVENUES Special assessments $ - $ 69,637 S - $ - - $ 69,637 Interest on investments 126 4,790 216 370 1,850 7,352 Charges for services - - - - 6,515 6,515 Refunds and reimbursements 10,832 - - - 10,832 TOTAL REVENUES 10,958 74,427 216 370 8,365 94,336 EXPENDITURES Current Culture and recreation Personal services 4,344 - 4,344 Supplies 1,129 - - - 1,129 Other services and charges 143 - 143 Capital outlay General government - - 1,186 - 1,186 Public works - 346,420 87,470 72,105 505,995 TOTAL EXPENDITURES 5,616 346,420 - 88,656 72,105 512,797 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES 5,342 (271,993) 216 (88,286) (63,740) (418,461) OTHER FINANCING SOURCES Transfers in - 169,000 - 54,000 223,000 NET CHANGE IN FUND BALANCES 5,342 (102,993) 216 (34,286 (63,740) (195,461) FUND BALANCES,JANUARY 1 15,061 350,646 15,622 43,303 237,170 661,802 FEND BALANCES,DECEMBER 31 S 20,403 S 247,653 $ 15,838 $ 9,017 $ 173,430 $ 466,341 -67- CITY OF CENTERVILLE,MINNESOTA GENERALFUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-CONTINUED ON THE FOLLOWING PAGES FOR THE YEAR ENDED DECEMBER 31,2014 (With Comparative Actual Amounts for the Year Ended December 31,2013) 2014 2013 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts REVENUES Taxes General property $ 1,739,600 $ 1,739,600 $ 1,733,187 $ (6,413) $ 1,751,963 Gambling 1,000 1,000 3,123 2,123 6,280 Total 1,740,600 1,740,600 1,736,310 (4,290) 1,758,243 Licenses and permits Business 15,000 15,000 16,630 1,630 21,024 Nonbusiness 85,500 85,500 92,291 6,791 101,970 Total 100,500 100,500 108,921 8,421 122,994 Intergovernmental State Local government aid 53,444 53,444 53,444 - - Market value agricultural credit - - 98 98 98 State grants aid 1,300 1,300 1,333 33 1,333 Police aid 32,000 32,000 37,928 5,928 34,587 Fire aid 105,000 105,000 148,347 43,347 148,872 County-other 17,000 17,000 18,613 1,613 18,322 Total 208,744 208,744 259,763 51,019 203,212 Charges for services General government 1,000 1,000 2,190 1,190 1,235 Culture and recreation 2,500 2,500 4,260 1,760 4,631 Other 100 100 70 (30) 23 Total 3,600 3,600 6,520 2,920 5,889 Fines and forfeitures 35,000 35,000 23,043 (11,957) 34,828 Special assessments 18,000 18,000 18,618 618 57,821 Interest on investments 15,000 15,000 4,050 (10,950) - Miscellaneous Refunds and reimbursements 7,000 7,000 19,603 12,603 12,053 Other 1,500 1,500 5,651 4,151 642 Total 8,500 8,500 25,254 16,754 12,695 TOTAL REVENUES 2,129,944 2,129,944 2,182,479 52,535 2,195,682 -69- CITY OF CENTERVILLE,MINNESOTA GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-CONTINUED FOR THE YEAR ENDED DECEMBER 31,2014 (With Comparative Actual Amounts for the Year Ended December 31,2013) 2014 2013 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts EXPENDITURES Current General government Mayor and Council Personal services $ 30,100 $ 30,100 $ 30,136 $ (36) $ 30,114 Other services and charges 1,400 1,400 65 1,335 30 Total 31,500 31,500 30,201 1,299 30,144 Elections Personal services 5,400 5,400 4,654 746 - Supplies 700 700 105 595 - Other services and charges 1,100 1,100 1,318 (218) - Total 7,200 7,200 6,077 1,123 - Planning and zoning Other services and charges 2,500 2,500 1,188 1,312 1,332 Administration Personal services 276,100 276,100 231,658 44,442 232,860 Supplies 2,300 2,300 2,473 (173) 2,344 Other services and charges 49,400 49,400 68,632 (19,232) 46,630 Total 327,800 327,800 302,763 25,037 281,834 Assessing Other services and charges 16,000 16,000 15,912 88 15,662 Legal and auditing Other services and charges 96,000 96,000 95,837 163 98,484 General government building Personal services 2,800 2,800 1,249 1,551 1,350 Supplies 300 300 436 (136) 370 Other services and charges 15,500 15,500 13,404 2,096 11,168 Total 18,600 18,600 15,089 3,511 12,888 Total general government 499,600 499,600 467,067 32,533 440,344 -70- CITY OF CENTERVILLE,MINNESOTA GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-CONTINUED FOR THE YEAR ENDED DECEMBER 31,2014 (With Comparative Actual Amounts for the Year Ended December 31,2013) 2014 2013 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts EXPENDITURES-CONTINUED Current-continued Public safety Police protection Other services and charges $ 689,855 S 689,855 S 680,036 S 9,819 S 676,908 Fire protection Remittance to relief association 105,000 105,000 148,347 (43,347) 148,872 Other services and charges 123,761 123,761 123,720 41 123,650 Total 228,761 228,761 272,067 (43,306) 272,522 Building inspection Personal services 96,000 96,000 101,580 (5,580) 86,360 Supplies 2,200 2,200 4,280 (2,080) 2,649 Other services and charges 13,300 13,300 6,908 6,392 11,494 Total 111,500 111,500 112,768 (1,268) 100,503 Civil defense Other services and charges 1,500 1,500 1,229 271 1,658 Animal control Other services and charges 1,000 1,000 - 1,000 - Total public safety 1,032,616 1,032,616 1,066,100 (33,484) 1,051,591 Public works Streets Personal services 125;800 125,800 143,473 (17,673) 132,482 Supplies 36,700 36,700 24,742 11,958 32,071 Other services and charges 83,600 83,600 99,817 (16,217) 87,905 Total 246,100 246,100 268,032 (21,932) 252,458 Recycling Personal services 8,800 8,800 8,816 (16) 8,541 Supplies 100 100 - 100 - Other services and charges 8,100 8,100 10,005 (1,905) 3,518 Total 17,000 17,000 18,821 (1,821) 12,059 -71- CITY OF CENTERVILLE,MINNESOTA GENERALFUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-CONTINUED FOR THE YEAR ENDED DECEMBER 31,2014 (With Comparative Actual Amounts for the Year Ended December 31,2013) 2014 2013 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts EXPENDITURES-CONTINUED Current-continued Public works-continued Engineering services Other services and charges $ 8,500 $ 8,500 $ 38,348 $ (29,848) $ 32,954 Total public works 271,600 271,600 325,201 (53,601) 297,471 Culture and recreation Parks and recreation Personal services 38,700 38,700 35,032 3,668 34,543 Supplies 3,800 3,800 2,403 1,397 1,924 Other services and charges 45,600 45,600 41,236 4,364 37,439 Total 88,100 88,100 78,671 9,429 73,906 City Festival Other services and charges 5,500 5,500 6,287 (787) 5,950 Total culture and recreation 93,600 93,600 84,958 8,642 79,856 Economic development Other services and charges - - - - 2,038 Total current expenditures 1,897,416 1,897,416 1,943,326 (45,910) 1,871,300 Capital outlay General government 24,000 24,000 - 24,000 11,248 Public works 30,000 30,000 - 30,000 - Culture and recreation - - 3,236 (3,236) 18,155 Total capital outlay 54,000 54,000 3,236 50,764 29,403 TOTAL EXPENDITURES 1,951,416 1,951,416 1,946,562 4,854 1,900,703 -72- CITY OF CENTERVILLE,MINNESOTA GENERALFUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-CONTINUED FOR THE YEAR ENDED DECEMBER 31,2014 (With Comparative Actual Amounts for the Year Ended December 31,2013) 2014 2013 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts EXCESS OF REVENUES OVER EXPENDITURES $ 178,528 $ 178,528 $ 235,917 $ 57,389 $ 294,979 OTHER FINANCING SOURCES(USES) Sale of capital assets - - 47,500 47,500 10,000 Transfers out (169,000) (169,000) (223,000) (54,000) (252,203) TOTAL OTHER FINANCING SOURCES(USES) (169,000) (169,000) (175,500) (6,500) (242,203) NET CHANGE IN FUND BALANCES 9,528 9,528 60,417 50,889 52,776 FUND BALANCES,JANUARY 1 1,258,596 1,258,596 1,258,596 - 1,205,820 FUND BALANCES,DECEMBER 31 S 1,268,124 $ 1,268,124 $ 1,319,013 S 50,889 $ 1,258,596 -73- CITY OF CENTERVILLE,MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31,2014 309 348 349 Joint G.O. G.O. Police Improvement Improvement Station Bonds of Bonds of 2012A 2006A 2007A ASSETS Cash and temporary investments $ 60,731 $ 474,829 $ 364,547 Receivables Accrued interest 88 685 523 Special assessments - 37,168 383,673 Prepaid items 5,496 - 18,301 TOTAL ASSETS $ 66,315 $ 512,682 $ 767,044 LIABILITIES Due to other governments $ 49 $ - $ 172 Deposits payable - 27,800 - TOTAL LIABILITIES 49 27,800 172 DEFERRED INFLOWS OF RESOURCES Unavailable revenue-special assessments - 37,168 383,673 FUND BALANCE Restricted for debt service 66,266 447,714 383,199 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE $ 66,315 $ 512,682 $ 767,044 -74- 351 352 G.O. G.O. Improvement Improvement Bonds of Bonds of 2009A 2013A Total $ 843,290 $ 57,381 $ 1,800,778 1,220 83 2,599 640,370 229,070 1,290,281 - - 23,797 $ 1,484,880 $ 286,534 $ 3,117,455 $ 152 $ 5 $ 378 - - 27,800 152 5 28,178 639,817 229,070 1,289,728 844,911 57,459 1,799,549 $ 1,484,880 $ 286,534 $ 3,117,455 -75- CITY OF CENTERVILLE,MINNESOTA DEBT SERVICE FUNDS COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31,2014 309 348 349 Joint G.O. G.O. Police Improvement Improvement Station Bonds of Bonds of 2012A 2006A 2007A REVENUES Property taxes $ 69,851 $ - $ 243,497 Special assessments - 83,882 Intergovernmental - _ - Interest on investments 686 4,017 4,635 TOTAL REVENUES 70,537 4,017 332,014 EXPENDITURES Debt service Principal 60,000 175,000 360,000 Interest and other 5,983 53,495 40,698 TOTAL EXPENDITURES 65,983 228,495 400,698 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES 4,554 (224,478) (68,684) OTHER FINANCING SOURCES Sale of capital assets - 297,877 - NET CHANGE IN FUND BALANCES 4,554 73,399 (68,684) FUND BALANCES,JANUARY 1 61,712 374,315 451,883 FUND BALANCES,DECEMBER 31 $ 66,266 S 447,714 $ 383,199 -76- 351 352 G.O. G.O. Improvement Improvement Bonds of Bonds of 2009A 2013A Total $ 214,565 $ 3,661 $ 531,574 102,074 36,180 222,136 51,033 - 51,033 11,224 591 21,153 378,896 40,432 825,896 260,000 - 855,000 157,618 43,684 301,478 417,618 43,684 1,156,478 (38,722) (3,252) (330,582) 297,877 (38,722) (3,252) (32,705) 883,633 60,711 1,832,254 $ 844,911 $ 57,459 $ 1,799,549 -77- CITY OF CENTERVILLE,MINNESOTA SUMMARY FINANCIAL REPORT REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTAL FUNDS FOR THE YEARS ENDED DECEMBER 31,2014 AND 2013 Percent Total Increase 2014 2013 (Decrease) REVENUES Taxes $ 2,267,884 $ 2,287,009 (0.84) % Licenses and permits 108,921 122,994 (11.44) Intergovernmental 310,796 203,212 52.94 Charges for services 13,035 5,889 121.34 Fines and forfeitures 23,043 34,828 (33.84) Special assessments 310,391 566,188 (45.18) Interest on investments 33,080 6,862 382.08 Miscellaneous 36,086 41,566 (13.18) TOTAL REVENUES $ 3,103,236 $___3,268,548 (5.06) % Per Capita $ 785 $ 851 (7.75) % EXPENDITURES Current General government $ 467,067 $ 440,344 6.07 % Public safety 1,066,100 1,051,591 1.38 Public works 325,201 358,939 (9.40) Culture and recreation 90,574 95,700 (5.36) Economic development - 2,038 (100.00) Capital outlay General government 1,186 11,248 (89.46) Public works 505,995 1,236,533 (59.08) Culture and recreation 3,236 18,155 (82.18) Debt service Principal 855,000 1,229,981 (30.49) Interest and other 318,352 238,216 33.64 Bond issuance costs - 10,278 (100.00) TOTAL EXPENDITURES $ 3,632,711 $ 4,693,023 (22.59) % Per Capita S 919 $ 1,222 (24.79) % Total Long-term Indebtedness $ 8,695,000 $ 9,550,000 (8.95) % Per Capita 2,200 2,486 (11.53) General Fund Balance-December 31 $ 1,319,013 $ 1,258,596 4.80 % Per Capita 334 328 1.83 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. -78- OTHER REQUIRED REPORT CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -79- ABDO EICK & ME l RS LLP ce r fted Publk Accounwnts&Cmaidtaw INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of Centerville,Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America,the 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 31,2014,and the related notes to the financial statements, and have issued our report thereon dated March 26,2015. The Minnesota Legal Compliance Audit Guide for Political Subdivisions, 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 the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions, except as noted on the Schedule of Findings and Responses as finding 2014-001. However,our audit was not directed primarily toward procedures,other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions.Accordingly,had we performed additional procedures,other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions. The City's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Responses.The City's response was not subjected to the auditing procedures applied in the audit of the financial statements and,accordingly,we express no opinion on them. 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. OL& &�, f W� �, ABDO,EICK&MEYERS,LLP Minneapolis,Minnesota March 26,2015 5201 Eden Avenue,Suite 250 Edina,MN 55436 952 835.9090 1 Fax 952.835.3261 -g 1- CITY OF CENTERVILLE,MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES FOR THE YEAR ENDED DECEMBER 31,2014 Findinjz Description 2014-001 Public purpose expenditure Condition: Our audit procedures include certain tests of the City's compliance with specific statutes and rules. During our tests we noted that the City Council approved a purchase for a painting for$296 and presented it as a gift to the retiring City Administrator. Criteria: According to Minnesota statutes section 15.46, in order for an expenditure of public funds to be lawful it should meet two standards: 1.)There must be a public purpose for the expenditure and 2.)There must be specific or implied authority for the expenditure in statute or in the City's charter. Minnesota statutes do not provide the authority for employee recognition. Cause: It appears the City Council did not adequately consider the lawful purpose statutes. Effect: While the amount may be considered relatively minor,the expenditure does not meet the criteria for a valid public expenditure and as a result the City is out of compliance with statutes. Recommendation: We recommend the City Council review the public purpose guidelines to ensure expenditures meet the above requirements. Management response: The Mayor and City Council members have,subsequently,reimbursed the City for the entire cost of the painting. -83- Management Letter City of Centerville Centerville, Minnesota For the Year Ended December 31, 2014 ABDO EICK & People MMR.S>� cods CoiyW PuNic Acmuntaw&Cowuhants Bed,. Nwfibeis ABDO SICK & MEYERSI1Y Certiyted Public Accountants&Consultants March 26,2015 Management,Honorable Mayor and City Council City of Centerville,Minnesota We have audited the accompanying financial statements of the governmental activities,the business-type activities,each major fund and the aggregate remaining fund information of the City of Centerville,Minnesota(the City),for the year ended December 31,2014. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards,as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated November 13,2014.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 conformity with accounting principles generally accepted to the United States of America.Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable,but not absolute,assurance that the financial statements are free of material misstatement. As part of our audit,we considered the internal control 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 of the financial statements,we considered the City's internal control to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.Accordingly,we do not express an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore,material weaknesses or significant deficiencies may exist that were not identified. However,as described below we identified a certain deficiency in internal control that we consider to be a material weakness. A deficiency in internal control exists when the design or operation of a control does not allow management or employees,in the normal course of performing their assigned functions,to prevent,or detect and correct,misstatements on a timely basis.A material weakness is a deficiency,or 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 deficiencies below as item 2014-002 to be a material weakness. 5201 Eden Avenue,Suite 250 Edina,MN 55436 952.835.9090 1 Fax 952.835.3261 -1- 2014-002 Financing plan Condition: During our audit, it was noted that a payment was made to the City of Lino Lakes for the City's share of a joint project totaling$310,961. The project included a street,sewer and water component but the entire project was paid from the water fund. Typically,project costs should be funded by the benefitted fund. Furthermore,when reviewing support for this payment it appeared that a documented financing plan was not in place. Upon further review,a draft special assessment agreement was found in the project file. However,it was not signed or approved by City Council. Criteria: Without a signed agreement or other supporting documentation,the City cannot establish evidence that a commitment for payment from the benefitted party has been agreed to. Cause: It appears that the City did not have proper follow up or documentation to document evidence of the special assessment agreement. Effect: The effect of this condition is two-fold. First,it appears that the Water fund had the most cash and as a result was used to pay for the project. While this may be acceptable,we did not see evidence that the Council considered other options.The long term effect of this practice is that the water fund rates end up being higher than necessary in order to fund projects that could be financed by general tax levy or specific benefitted properties. Second,without the proper signed agreement in place there is no signed evidence of the benefitted parties commitment to pay for the project. Recommendation: We recommend City procedures should include proper approval from City Council and any other required parties for the financing plan,which also identifies the components of the project and what resources the City uses to fund them. This will give council better tools to evaluate the project and understand the true costs. Management response: The City has located the signed assessment agreement and will be presenting it to the City Council for official approval as soon as possible. The agreement will be revised to include updated costs and new financing terms. Compliance and Other Matters As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement,we performed tests of compliance with certain provisions of Minnesota statutes.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.While our audit provides a reasonable basis for our opinion,it does not provide a legal determination on the City's compliance with those requirements.We noted no instances of noncompliance with Minnesota statues except as noted below. 2014-001 Public purpose expenditure Condition: Our audit procedures include certain tests of the City's compliance with specific statutes and rules. During our tests we noted that the City Council approved a purchase for a painting costing$296 and presented it as a gift to the retiring City Administrator. Criteria: According to Minnesota statutes section 15.46,in order for an expenditure of public funds to be lawful it should meet two standards: 1.)There must be a public purpose for the expenditure and 2.)There must be specific or implied authority for the expenditure in statute or in the City's charter. Minnesota statutes do not provide the authority for employee recognition. Cause: It appears the City Council did not adequately consider the lawful purpose statutes. Effect: While the amount may be considered relatively minor,the expenditure does not meet the criteria for a valid public expenditure and as a result the City is out of compliance with statutes. Recommendation: We recommend the City Council review the public purpose guidelines to ensure expenditures meet the above requirements. Management response: +PrNOocess.le The Mayor and City Council members have,subsequently,reimbursed the City for the entire cost of Ci01 the painting. -2- ,N�llT irs Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies.The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended December 31,2014. We noted no transaction entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus.All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and 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 and allocation 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 26,2015. 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. People +Wocjesss Gom, -3- i�UIIIO�)ef5 Other Matters With respect to the supplementary information accompanying the financial statements,we made certain inquiries of management and 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. 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. 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 31,2014. 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$60,417 from 2013.The fund balance of$1,319,013 is 64.5 percent of the 2015 budgeted expenditures.We recommend that the fund balance be maintained at a level sufficient to fund operations until the major revenue sources are received in June. The City's fund balance policy for the General fund identifies a minimum unassigned fund balance of 40-50 percent of the following year's budgeted expenditures. The City's ending fund balance is above this target level. The purposes and benefits of an adequate fund balance are as follows: • Expenditures are incurred somewhat evenly throughout the year.However,property tax and state aid revenues are not received until the second half of the year.An adequate fund balance will provide the cash flow required to finance the governmental fund expenditures. • 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. People +WoceSsa Going -4- Nuifibers A table summarizing the General fund balances in relation to budgeted expenditures out follows: Percent Total General of Fund Fund Balance Budget Fund Balance to Year December 31 Year Budget Budget 2010 $ 1,068,411 2011 $ 2,054,700 52 % 2011 1,142,321 2012 1,902,800 60 2012 1,205,820 2013 1,914,400 63 2013 1,258,596 2014 1,951,416 64 2014 1,319,013 2015 2,044,424 65 Fund Balances as a Percent of Next Year's Budget $2,500,000 - - $2,054,700 $2,044,424 $2,000,000 - $1,902,800 $1,914,400 $1,951,416 I $1,500,000 60% 63% 64% 65% 52% I $1,000,000 i $500,000 I 2010 2011 2012 2013 2014 2015 <--Actual Fund Balance ---f-Budget We have compiled a peer group average derived from information we requested from the Office of the State Auditor for Cities of the 4th class which have populations of 2,500-10,000.In 2012 and 2013,the average General fund balance as a percentage of expenditures was 76 percent and 75,percent,respectively. People +Prooess. GoingB}Je -5- NllII1rs A summary of the 2014 operations is as follows: Original Final Budgeted Budgeted Actual Variance with Amounts Amounts Amounts Final Budget Revenues $ 2,129,944 $ 2,129,944 $ 2,182,479 $ 52,535 Expenditures 1,951,416 1,951,416 1,946,562 4,854 Excess of revenues over expenditures 178,528 178,528 235,917 57,389 Other financing sources(uses) Sale of capital assets - - 47,500 47,500 Transfers out (169,000) (169,000) (223,000) (54,000) Total other financing sources(uses) (169,000) (169,000) (175,500) (6,500) Net change in fund balances 9,528 9,528 60,417 50,889 Fund balances,Tan::a:j 1 1,258,596 1,258,596 1,258,596 - Fund balances,December 31 $ 1,268,124 $ 1,268,124 $ 1,319,013 $ 50,889 • Total revenue had a positive budget variance of$52,535. All revenue categories had positive variances,except for interest on investments,property taxes, and fines and forfeitures. 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$4,854. Total public safety and public works expenditures were over budget by a total of$33,484 and$23,601,respectively. Total general governmental expenditures were under budget by$56,533 • The city also transferred$223,000 from the general fund to other funds,which was$54,000 more than budget.City Council approved a transfer of$54,000 which was authorized to fund future capital asset acquisitions. People +Process. Going 13 -6- eyondt� lumbers A more detailed comparison of General fund revenues and transfers for the past three years is as follows: Percent Per Source 2012 2013 2014 of Total Capita Taxes $ 1,738,970 $ 1,758,243 $ 1,736,310 78.0 % $ 439 Licenses and permits 129,424 122,994 108,921 4.9 28 Intergovernmental 222,950 203,212 259,763 11.6 66 Charges for services 7,496 5,889 6,520 0.3 2 Fines and forfeitures 44,836 34,828 23,043 1.0 6 Special assessments 27,543 57,821 18,618 0.8 5 Interest on investments 11,334 - 4,050 0.2 1 Miscellaneous 89,735 12,695 25,254 1.1 6 Sale of capital assets - - 47,500 2.1 12 Total revenues and transfers $ 2,272,288 $ 2,195,682 $ 2,229,979 100.0 % $ 565 The sources of General fund revenues are presented graphically as follows: Revenues and Transfers In $2,000,000 $1,800,000 4 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 — $600,000 - - - - - - - - - $400,000 - --- $200,000 — - - $- — - - 2012 2013 2014 --f— Taxes Licenses and permits Intergovernmental 0 Other Some of the line items with significant changes are highlighted below: • Intergovernmental revenues increased in 2014 mostly due to the City receiving local government aid. The City has not received this aid in the prior years presented. • The City purchased new vehicles and sold the old vehicles during the year. The City also sold land during the current year. People +Prooessd Going -7- rs A summary of the past three years General fund expenditures and transfers is as follows: Peer Percent Per Group Per Program 2012 2013 2014 of Total Capita Capita Current General government $ 475,742 $ 440,344 $ 467,067 21.5 % $ 118 $ 128 Public safety 1,009,200 1,051,591 1,066,100 49.1 270 221 Public works 408,361 297,471 325,201 15.0 82 114 Culture and recreation 82,684 73,906 78,671 3.6 20 54 Economic development 2,400 2,038 - - - 4 Miscellaneous 5,569 5,950 6,287 0.3 2 16 Total current 1,983,956 1,871,300 1,943,326 89.6 492 537 Capital outlay 29,000 29,403 3,236 0.1 1 28 Debt service 6,833 - - - - - Transfers out 189,000 252,203 223,000 10.3 56 - Total expenditures and transfers $ 2,208,789 $ 21152,906 $ 21169,562 100.0 % $ 549 $ 565 The above chart compares the amount the City spends per capita,in comparison to a peer group.The peer group average is derived from information we requested from the Office of the State Auditor for Cities of the 4`h class which have populations between 2,500 and 10,000. The function/program of the expenditures and transfers are presented graphically as follows: Expenditures and Transfers Out $1,200,000 - - - - - - - i $1,000,000 I $800,000 -- ---- --- ------------ ----- ---- -----' $600,000 — � I $400,000 — -- --- _I $200,000 I ` $- 2012 2013 2014 --lam General government f- Public safety _ Public works -H—Other People +Process. Going Be},6ndth� -g- Vurftbm 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 2014 2013 (Decrease) Nonmaj or Cable T.V. $ 20,403 $ 15,061 $ 5,342 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 2014 2013 (Decrease) Major Park $ (1,103,264) $ (1,086,915) $ (16,349) Nonmaj or Revolving Street 247,653 350,646 (102,993) Pedestrian Trail Ways 15,838 15,622 216 2013 Street Project 173,430 237,170 (63,740) Capital Equipment Revolving 9,017 43,303 (34,286) Total $ (657,326) $ (440,174) $ (217,152 The City should continue to annually evaluate the status of each project to determine if the fund should be closed or if additional funding sources will be needed for deficits.Each deficit indicates a funding shortfall and all will eventually need to be eliminated either by future charges or by transfers from other funds. The deficit fund balance in the Park fund of$1,103,264 is due to a transfer out of$825,000 in 2011 to the Pedestrian Trail Ways to fund the project plan. The decreases in the Revolving Street, 2013 Street Project.and Capital Equipment Revolving fund are due to street improvement projects and vehicle purchases. People +Woo f-,%. Going 9 Beyond Numbers Debt Service Funds Debt Service funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt(other than enterprise fund debt). Debt Service funds may have one or a combination of the following revenue sources pledged to retire debt as follows: • Property taxes-Primarily for general City benefit projects such as parks and municipal buildings.Property taxes may also be used to fund special assessment bonds which are not fully assessed. • Tax increments-Pledged exclusively for tax increment/economic development districts. • Capitalized interest portion of bond proceeds-After the sale of bonds,the project may not produce revenue(tax increments or special assessments)for a period of one to two years.Bonds are issued with this timing difference considered in the form of capitalized interest. • Special assessments-Charges to benefited properties for various improvements. In addition to the above pledged assets,other funding sources may be received by Debt Service funds as follows: • Residual project proceeds from the related capital projects fund • Investment earnings • State or federal grants • Transfers from other funds A comparison of the assets of each fund and the remaining bonds outstanding at year end are as follows: Cash and Temporary Total Bonds Fund Investments Assets Outstanding Maturity 309 Joint Police Station 2005A $ 60,731 $ 66,315 $ 395,000 2021 348 G.O. Crossover Bonds of 2009B 474,829 512,682 1,770,000 2018 349 G.O. Improvement Bonds of 2011A 364,547 767,044 1,855,000 2019 351 G.O. Improvement Bonds of 2009A 843,290 1,484,880 3,190,000 2025 352 G.O.Improvement Bonds of 2013A 57,381 286,534 1,485,000 2029 Total S 1,800,778 $ 3,117,455 $ 8,695,000 The following graph shows the next five years of principal and interest payments from the debt service funds: $2,500,000 - - - - $2,000,000 --- ---- ------- - — -------— ------ I $1,500,000 $1,000,000 i $500,000 $- 2015 2016 2017 2018 2019 `— ■Principal ■Interest --1 People ----- ---- ------ +Process. Going -10- N�utfibers� Water Utility Cash Flow $1,200,000 - - - ----------- ---- -------- ---- --- S1,000,000 - 5800,000 —-- 5600,000 5400,000t .:ak N'.,s�' ;Xn, S200,000 '" PI 2011 2011 Receipts 2012 2012 Receipts 2013 2013 Receipts _ 2014 2014 Receipts Disbursements Disbursements Disbursements Disbursements - - - ------ -- ----- -- ----- ------- -- Operating costs *Other(capital) ■Operating receipts IF Other(connections,intergovernmental,interest) Water Utility Cash Reserve Target $1,400,000 $1,288,411 i $1,200,000 - - - -48 $1,210,365 - $1,074,848 _ - — - - -- -- - - -- $1,093,699 _--� i $1,000,000 i $800,000 - { $600,000 _ I $400,000 -- -- - - - _- i i $200,000 - I $ — I 2011 2012 2013 2014 iUnrestricted Minimum target balance(35% of operating costs) Some of the items with significant changes are highlighted below: • Operating receipts(blue)were sufficient to cover operating costs(grey)with the exception of 2014,which was due to the City's share of a joint project totaling$310,961 being funded through the Water fund. • The Water fund received CDBG funds total roughly$422,000,which help offset some of the capital costs in the fund for 2014. • The cash balance had decreased roughly$200,000 from 2012. We recommend the City review rates annually to determine if operating revenues will cover operating costs and TSO future projects. Pk +Wooess. r;0* -11- l rs Sewer Utility Cash Flow $1,000,000 $900,000 ----— -- $800,000 — -- --- --- -- - ---- ----- --- $700,000 -- -- — ----- — ---- $600,000 ----- $500,000 ------------ ',d: - -- $400,000 - $300,000 $200,000 $100,000 ` N' 2011 2011 Receipts 2012 2012 Receipts 2013 2013 Receipts 2014 2014 Receipts Disbursements Disbursements Disbursements Disbursements LOperating costs —■Other(capital,interfund) •Operating receipts R Other(connections,mterfund.interest) 2011 2012 2013 2014 Due from other funds $ 2,050,776 $ 1,579,520 $ 1,191,917 $ 1,186,796 Sewer Utility Cash Reserve Target $1,400,000 - I $1,200,000 $1,172,992 _ _ $1,000,000 _ $946,137- $800,000 - - I $600,000 - - - - - $400,000 - --- $222,280-- - - - - -- -- - -—� i $200,000 -- - - -- -- - $- - 2011 2012 2013 2014 Unrestricted Minimum target balance(3 5% operating costs) Some of the items with significant changes are highlighted below: • Operating receipts(blue)were sufficient to cover operating costs(grey)with the exception of 2013. • The Sewer fund has a balance of$1,186,796 due from other funds. This is mostly funding the cash deficit in the Park fund. We recommend the City review rates annually to determine if operating revenues will cover operating costs and NO le future projects. +PPOOess. Going -12- Beyond Numbers Storm Water Utility Cash Flow S)80,000 $160,000 $140,000 S120,000 S100,000 S80,000 560,000 540,000 $20,000 2011 2011 Receipts 2012 2012 Receipts 2013 2013 Receipts 2014 2014 Receipts Disbursements Disbursements Disbursements Disbursements Operating costs 2 Other(capital,interfund) E Operating receipts L Other(transfers,interest earnings) 2011 2012 2013 2014 Due to other funds $ 110000 $ 88,650 $ 66,980 $ 44,985 Storm Water Utility Cash Reserve Target $140,000 $1302947 –$1-39,644 $120,000 $120,592 $100,000 $88,787 $80,000 $60,000 $40,000 ------ $20,000 $- 2011 212 2013 2014 Unrestricted —&--Minimum target balance(35%of operating costs) Some of the items with significant changes are highlighted below: • Operating receipts(blue)were sufficient to cover operating costs(grey)the past four years. • The fund has been able to make the requirement payments on the due to other funds balance. This balance is scheduled to be eliminated in 2016. We recommend the City review rates annually to determine if operating revenues will cover operating costs and future projects. People +Wocess. Going -13- Bev6ndtbe Numbers 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 the Office of the State Auditor.Different peer group averages were used for Cities of the 4"' class(population 2,500— 10,000).The majority of these ratios facilitate the use of economic resources focus and accrual basis of accounting at the government-wide level.A combination of liquidity(ability to pay its most immediate obligations),solvency(ability to pay its long-term obligations), funding(comparison of financial amounts and economic indicators to measure changes in financial capacity over time)and common-size(comparison of financial data with other cities regardless of size)ratios are shown below. Ratio Calculation Source 2010 2011 2012 2013 2014 Debt to assets Total liabilities/total assets Government-wide 2831°<, 310/6 31% 29° 37^b 33'% 33% 32% A A Debt per capita Bonded debt/population Government-wide S 2.159 S 2,459 S 2.310 S _2.44,6 S 2200 S 3,12? s _1,Y.26 S 2.616 52,06 AI Taxes per capita Tax revenues/population Government-wide S 433 S 4-42 S 456 S 435 S 440 5 '07 S 500 4(",o s -181 IN,A Current expenditures per capita Governmental fund current Governmental funds S 525 S 52: S 526 S 50 7 S 493 expenditures/population S 624 S 6•10 S 649 3 634 AM Capital expenditures per capita Governmental fund capital Governmental funds S ;?0 S 244 S _"I S 33t? S 12191 expenditures/population * 265 .S 229 S _19N S 294 A',A Capital assets%left to Net capital assets/ Government-wide c=", ,9 72 depreciate-Governmental gross capital assets 61010 64% 65°1, 6, i, A114 Capital assets%left to Net capital assets/ Government-wide - 69°z, t(''„ 63 depreciate-Business-type gross capital assets 59% 651?„ 633b 63% A 5tc�3C�t?"tom?s:C i`�d•. .�' C;!iCi-1 1; C Yc/r,-sertls Pee-Group Ave regi,. Debt-to-Assets Leverage Ratio(Solvency Ratio) The debt-to-assets leverage ratio is a comparison of a city's total liabilities to its total assets or the percentage of total assets that are provided by creditors. It indicates the degree to which the City's assets are financed through borrowings and other long-term obligations(i.e. a ratio of 50 percent would indicate half of the assets are financed with outstanding debt). Bonded Debt per Capita(Funding Ratio) This dollar amount is arrived at by dividing the total bonded debt by the population of the city and represents the amount of bonded debt obligation for each citizen of the city at the end of the year.The higher the amount,the more resources are needed in the future to retire these obligations through taxes,assessments or user fees. Taxes per Capita(Funding Ratio) This dollar amount is arrived at by dividing the total tax revenues by the population of the city and represents the amount of taxes for each citizen of the city for the year. The higher this amount is,the more reliant the city is on taxes to fund its operations. Current Expenditures per Capita(Funding Ratio) This dollar amount is arrived at by dividing the total current governmental expenditures by the population of the City and represents the amount of governmental expenditure for each citizen of the City during the year. Since this is generally based on ongoing expenditures,we would expect consistent annual per capita results. peppy1C +W oc ess. Going -14- Beyondtb, Nlunbers Capital Expenditures per Capita(Funding Ratio) This dollar amount is arrived at by dividing the total governmental capital outlay expenditures by the population of the City and represents the amount of capital expenditure for each citizen of the City during the year. Since projects are not always recurring,the per capita amount will fluctuate from year to year. Capital Assets Percentage(Common-size Ratio) This percentage represents the percent of governmental or business-type capital assets that are left to be depreciated.The lower this percentage,the older the city's capital assets are and may need major repairs or replacements in the near future.A higher percentage may indicate newer assets being constructed or purchased and may coincide with higher debt ratios or bonded debt per capita. Future Accounting Standard Changes The following Governmental Accounting Standards Board(GASB)Statements have been issued and may have an impact on future City financial statements:(1) GASB Statement No.68-The 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 of Statement No.27,Accounting for Pensions by State and Local Governmental Employers,as well as the requirements of Statement 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 of Statements 27 and 50 remain 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.71 -Pension 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 Pepple resources related to pensions,paragraph 137 of Statement No. 68 required that beginning balances for deferred -�pI.O( SSa outflows of resources and deferred inflows of resources not be reported. Golm -15- 1Nui QTS Future Accounting Standard Changes-Continued 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.68 to 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 beginning net 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 significant additional 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 you have any questions or wish to discuss any of the items contained in this letter,please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. Ly mom, ABDO,EICK&MEYERS,LLP Minneapolis,Minnesota March 26,2015 People +Procjess. Going -16- N, umj berrs W 0� U Naka' ti J--J 3��1�11i "11 O D O O O O OSO � � to <' A m � �• � m '< m � � m � �, � .* N N � A T N rt H r-h O N r+ --h V1 3 0 3 m �'• m m o 0 0 CU 7Q M m. N m S " 3 m — CD ° m oo m �- M 0 `—h N � � m O N CD W W W N N N N F-- 00 N 1" tD V N O W 0) W 1-4 O lD V M 04:�k W N I nnis., of Ar Our Statement The Mission of the Centennial Lakes Police Department is to enhance the quality of life for those living in the cities of Centerville, Circle Pines, and Lexington by providing highly professional and responsive law enforcement and safety services. We are dedicated to carrying out our Mission with pride, courage, compassion, integrity and professionalism. We are also committed to organizational excellence and to fulfilling our Motto of "Safety. Community. Service. " - , r CenfMwfi(&[$f'P0(6 0emrlmenf 12014 ANNUAL REPORT MessaRe from the Ch " It is my honor to present our 2014 Annual ---- Report/2015 Management Plan. While it is my .�: privilege to author this introductory page, the credit for the content of this document really a. � belongs to the men and women who comprise the Centennial Lakes Police Department. A low crime rate, public confidence in our ability and integrity, sound policing operations, policies and practices in accord with national standards, and quality personnel at all levels of the r organization are just a few of our noteworthy accomplishments. In addition, last year we solved several significant criminal cases and our officers maintained their poise and Chief James Coan professionalism during some very volatile and potentially dangerous incidents. Much of our success is a reflection of how we are staffed, trained, and managed. Our philosophy of policing and our adherence to certain fundamentals of organizational development have been additional keys to our success, i.e. if you hire the right people, provide them with the right training, right equipment, right policies, and the right leadership; then the right things are going to happen. In the year ahead we will further our professional growth and development; adhere to the fundamentals of policing and organizational management; maintain close partnerships with our citizens, our schools, and with other local law enforcement agencies; and we will continue to render the same high level of safety service that our citizens have come to expect. We will strive for excellence and continue to work hard to ensure the safety and stability of the Cities of Lexington, Circle Pines, and Centerville. None of what we accomplish could be achieved without the dedication and effort put forth by everyone in our Department. It is my opinion that our greatest strength is the quality and caliber of our personnel. As individuals and as a law enforcement agency we have the capacity to meet virtually any challenge. In conclusion, I wish to thank all of our personnel, our Governing Board, Mayors, City Administrators, and our citizens for their continued support and cooperation. I believe that the future of the Centennial Lakes Police Department remains very bright and that together we stand ready to meet the challenges of a new year. Jam coavv Chief of Police �' �fE17f?fRI.CA�ICS Pofce 196parhmnt 12014 ANNUAL REPORT 0171% rill vepartment 31ts � In the late 1940's, Herman Heath became the first day-time Constable for Circle Pines. City Councilmen took turns providing policing duty at night. After formation of the village, a "one-man" police department was formed. The Village of Circle Pines acquired an ambulance/squad car to patrol and to transport injured or ill residents the many miles .. to the nearest hospital. In 1954, Joseph Matzke became the first Lexington police officer. Officer Matzke was paid $10 per month to cover gas and other expenses, plus he received a portion of the fines assessed for infractions of ordinance. Ac early ac 1965 a joint nolice force was discussed between Lexington and Clrr1- Pines. It wasn't until 1975 that a joint powers agreement was adopted by the two cities creating a combined police department. The police department was governed by a commission, rather than directly by the two city councils. Ronald Nicholas became the first Chief of the Circle Pines- Lexington Police Department. ` The department, consisting of four officers, was first housed in a portioned-off corner of the Circle Pines "fire barn". Part-time officers were later added to extend coverage. All officers shared one police patrol car, a 1973 Plymouth inherited from the City of Lexington. In 1978, the police department moved from the fire barn to an office in the shopping area of 9201 Lexington Avenue. In June of 1986, the department moved again, this time into the lower level of the new Circle Pines City Hall. In 1991, the Circle Pines-Lexington Police Department began providing contracted police protection to Centerville. In December of 1999, a Joint Powers Agreement was completed, and on January 1, 2000, a tri-city "Centennial Lakes Police Department" was formed to provide law enforcement and safety services to the cities of Lexington, Circle Pines, and Centerville. In 2006, a new police station was built on the corner of North Road and Lake Drive in Circle Pines. Today the 1 Centennial Lakes Police Department is comprised of 16 sworn officers and 7 civilians who are fully dedicated to providing quality service to our three cities. Exceptional • .� personnel, a low crime rate, public confidence in our ability and integrity, policies and practices in accord with national standards, and innovative problem-solving and outreach programs are just a few of our noteworthy accomplishments. We take great pride in our entire community, our department, and in our commitment to protect and serve the citizens of the cities of Lexington, Circle Pines, and Centerville. &nfond&C s Poke 19epatdm d 12014 ANNUAL REPORT Or gantzati"Onaf Chart Centennial Lakes Police Department Organizational Chart Chief of Police Police Captain Office Manager f-. Cenfenrii��,Cu(�s Police i96PArbMnf 12014 ANNUAL REPORT roos e 2014 GOVERNING BOARD MEMBERS Centerville: Tom Wilharber Circle Pines: Dave Bartholomay Lexington: Mike Pitchford Ben Fehrenbacher Deb O'Brien Jack Plasch CENTENNIAL LAKES POLICE DEPARTMENT STAFF NAME TITLE SERVING SINCE Ronald Nelson Captain 01-02-1989 Cindy Lewis Office Manager 11-27-1989 Jon Krueger Patrol Officer 06-15-1997 Nancy Noren Records Technician 03-30-1998 Russell Blanck Administrative Sergeant 09-01-1998 Patrick Aldrich Patrol Sergeant 03-17-1999 Benjamin Stepan Patrol Sergeant 06-28-2000 Kristofer Carlson Detective 04-19-2004 Matthew Langreck Patrol Officer 11-01-2004 Andrew Dixon Patrol Officer 01-03-2005 William Jacobson Patrol Officer 09-12-2005 Aron Sandmann Patrol Officer 10-11-2005 Jeffrey Tarnowski Patrol Officer 07-31-2006 Matthew Giese Patrol Officer 10-16-2006 Katherine Honkomp Part-time Data Entry Clerk 04-18-2007 Angela Kruyer Patrol Officer 06-25-2007 Jaren Zech Patrol Officer 11-04-2008 Donna Anderson Part-time Data Entry Clerk 12-14-2009 James Coan Chief of Police 03-21-2011 Joel Heckman Police Chaplain 09-13-2011 Joe Wressell Community Service Officer 01-18-2012 Shane Werneke Patrol Officer 06-18-2012 Lucas Frederickson Community Service Officer 01-05-2013 Dennis Spreng Part-time Officer 01-09-2013 CenfmnifAfies Police VefMt*wnf 12014 ANNUAL REPORT = AK 1 Cap,tam In the mid nineteen-nineties, the then Circle Pines — Lexington Police Department applied for and received a Community Oriented Policing grant through the Federal government. The grant money allowed the police department to hire additional officers and in turn assign an officer E full time to focus on issues brought forth by }: citizens, businesses, and others within the communities. Since that time, we have progressed to a point where all officers on every shift are involved with Community Oriented Policing(COP) in some manner every day. Captain Ron Nelson In 2008, the Centennial Lakes Police Department took Community Oriented Policing one step further when we implemented Problem Oriented Policing (POP). Problem solving is a broad term that describes the process by which specific issues or concerns are identified and the best remedies to eliminate the problem(s) identified. The idea is that if the underlyi8ng conditions that create problems can be eliminated,then so will the problem. Such conditions range from the type of individuals involved to the physical environment in which these problems are created. The Centennial Lakes Police Department has attempted to involve as many governmental, civic groups and/or community organizations, as well as citizens, with Problem Oriented Policing. Our goal is to work with and involve everyone that lives, works, or is simply passing through the communities in making the cities safer. We encourage feedback to let us know how we are doing. Each officer generates four new POP projects every year. The following is a short list of some current and former programs we have implemented over the years since starting COP. PROGRAMS Senior Citizen Presentations: Officers regularly attend coffee hours and meetings at the local senior centers to answer questions posed, present strategies on scams and fraud detection, advise on proper disposal of prescription drugs, etc. Officers also worked with residents on prominently displaying a current list of medications on their refrigerators for use in medical emergencies. Elementary School Mentoring: One or two times a week an officer spends an extended time at Golden Lake Elementary school with an assigned student, generally interacting with them on different projects and teaching the child life skills. c' aminifif& 'r PO ce arl"wt 12014 ANNUAL REPORT Vacant/Foreclosed Home Project: A list has been created, regularly updated and is available on each squad laptop with owner/bank contact information for vacant or foreclosed properties within the cities. Town Home Association Meetings: An officer attends town home association or apartment complex scheduled meetings. The officer answers questions and addresses resident and owner/manager concerns related to crime and safety. Lock Your Car: In response to numerous thefts from vehicles, officers secured funding for road signs to be posted in neighborhoods reminding residents to lock their car doors. Each spring officers also hand out flyers in neighborhoods and meet with residents to discuss issues in the area. Open Garage Door: While on patrol, officers identify open garage doors and close them. The officer will leave a "green card" for the resident explaining the action and give them the opportunity to receive a static cling reminder to close their garage door. High Snowbanks at Intersections: Many of you recall the winter of 2013 — 2014 when the snow just did not want to melt. Many intersections became quite dangerous where the snow was piled so high it was virtually impossible to observe cross traffic without moving into the intersection. Officers worked with local and county plow crews to get the worst intersections cleared quickly. Bar Closing Foot Patrol: Officers conduct foot patrol at different times inside the bar, as well as the parking lot, encouraging and reminding patrons to have a designated driver. They also work with employees to identify customers who may have consumed too much and get them a free ride home. Daily Visits to Elementary Schools: Officers spend time each day visiting classrooms, reading to students, and otherwise interacting with children on the playground as well as at school start or end. I Got Caught Program: In conjunction with Dairy Queen, officers identify kids following the rules and laws of bike safety. Officers will talk with the kids and give them a coupon for a free ice cream cone at DQ. Snowmobile Project: An officer attends the Rice Creek Trail Association meetings to answer questions and address issues while also working with the Association to curb citizen complaints. Business Safety Program: Officers will meet with businesses and work with them on strategies to lessen the probability of becoming a crime victim. Suggestions range from additional interior and/or exterior lighting to video surveillance. While there have been many other noteworthy projects throughout the years, the above listed programs give you an idea of what officers of the Centennial Lakes Police Department are committed to on a daily basis outside of responding to 911 calls or addressing traffic issues. Cenknnia(LR[Ogs Poke 19e(rtmenf 12014 ANNUAL REPORT enc AW 400� Each year officers of the Centennial Lakes Police Department respond to well over 400 medical emergencies across our three cities. Calls for help can range from a simple nose bleed to a cardiac arrest. All of our Police Officers and Community Service Officers are trained as medical first responders by the Centennial Fire Department. One of our officers is a certified Emergency Medical Technician (EMT) and serves as our medical training coordinator. In addition, we carry first aid and medical emergency equipment, including oxygen and defibrillators, in all of our police patrol vehicles. y Our officers are generally the first to arrive on the scene of a medical emergency which at times can be well in advance of an ambulance or fire/rescue personnel. Early response to a medical emergency can save a life or make the difference in bringing about the successful recovery of a victim. k . s In 2014 several of our officers received life-saving awards for their efforts in helping to deliver a baby and for resuscitating a victim of a heart attack. We are very proud to be an important component of our local emergency medical response system. It is one more way in which we are serving and protecting the citizens of our three cities. &n1ennW,&(v.s PoAce Veronmenf 12014 ANNUAL REPORT . a. s _ s � ter• OA O 1 +-1 O pp 4-1 V p a ,,,, , , O + ► �C I O C� CCS ,4-0 .4d pm O .PO z : a PO4 pm P4 �I .fid W,/ � � • � � z O � M y 4� C ol Air or • of Urca The Centennial Lakes Police Department is a "joint powers" department, meaning it delivers police services !! ,px to not one, but multiple cities. In this case, the three cities are Circle Pines, Centerville and Lexington. ,i F I am the department's Administrative Sergeant and the designated liaison to the city of Circle Pines. Circle Pines is a predominantly residential community located approximately 15 miles north of St. Paul and Minneapolis. Its approximate 2 square miles are fully developed, and only minor fluctuations occur in its 5,000 plus population. Its borders are Lexington Avenue to the west, North Road to the north, County Road J to the south and Indian Hills Drive/Rice Creek chain of lakes to the east. Lake Drive is a major Administrative Sergeant thoroughfare dividing the jurisdiction in two. Russell Blanck Circle Pines is a peaceful place to live, visit, conduct business and raise a family. In 2011 it was named the "43 Perfect Suburb in the United States" by CNBC.com. Its school district is highly regarded. It is known for high home ownership, an educated population, and its system of trails and parks. A small but successful business community integrates well with its primarily residential nature. Detailed crime data as reported to the FBI is contained elsewhere 41MD ' =r in this report. As the data reveal, one is not likely to be the victim t®.�;, � � � d . of a serious violent crime in Circle Pines. The most typical police- tiz• g s �,. a��. , related calls for service in Circle Pines are for traffic accidents, AMUmedicals, theft from vehicles and DWI's. On the whole, Circle ro t,, ;; f Pines is a very safe place to live and work. = s„Oft The department operates under the philosophy that high visibility patrol and aggressive enforcement of traffic laws deter crime. Residents and visitors will frequently see squad cars patrolling O r„n,.. their streets as well as stopping unsafe and illegal motor vehicle .N.J operators. High visibility patrol and aggressive enforcement result in fewer accidents as well as the identification of wanted individuals and those driving under the influence of impairing substances, without licenses and without insurance. The "bad guys" know Circle Pines' reputation for being a city not to drive ` through while under the influence, and the department is proud of that reputation. Crnfennifi<&C s POACe 19�Mtf"Wnf 12014 ANNUAL REPORT Suburban policing is predominantly service oriented, and the department prides itself on the quality and variety of services it provides. We are, almost always, the first arriving responder on medical incidents. We open doors for those locked out of their vehicles at no charge. Nor do we charge for false alarms. Our officers take pride in their relationships with the communities they serve and regularly "embed" themselves in the communities. They are known on both a professional and personal level. The department embraces both the community and problem oriented approaches to policing. Stakeholders actively participate in the direction of targeted police services which improves end user satisfaction and results in the reduction if not prevention of crime. Our officers are assigned to specific communities and/or geographic areas to address their specific needs in advance of problems. For example, officers attend board, periodic and annual meetings of multiple townhome and condominium associations, are designated as "liaisons" to Golden Lake Elementary School and the Centennial Area Learning Center, work with the Rice Creek Trail Association to enhance snowmobile operator safety and minimize resident complaints,work with neighborhood groups to enforce quality of life and other property-value maintaining ordinances against non-compliant properties, and address issues of particular relevance to our senior citizen residences. Circle Pines is a safe community where citizen needs and police services delivered are interactive and symbiotic. The relationship between the citizens and the police is a strong one and pride abounds. The department and I are both committed to enhancing this relationship and welcome your suggestions and participation. Thank you. A l Circle Pines City Hall &nknniA(APa1es 906M Vepartment 12014 ANNUAL REPORT C 10, tN-- of ! 1� C The City of Centerville is located in eastern Anoka - County approximately 13 miles north of St. Paul. Centerville's population is approximately 3,898 people and is 2.4 square miles. Centerville is known F _ for being home to Centerville and Peltier Lakes. The d lakes provide year round recreation for fishing enthusiasts. Centerville is also the entrance to the Rice Creek Chain of Lakes County Park. The park provides a beach, a boat launch, and a gazebo for grilling and family functions. There is a large campground located in the County Park as well. The entire park is well maintained and a popular location for runners,bikers and persons on roller-blades. Sergeant Pat Aldrich The Centennial Lakes Police Department utilizes a grid system to define the geography of the three cities we serve. Centerville is split up into two grids as follows: Grid 5 is all the territory north of Main St. Centerville Elementary is located in Grid 5. There are three city parks in grid five. Grid 5 also contains a fishing pier on Peltier Lake. Grid 6 is all the territory south of Main St. There are also two parks in grid 6. LaMotte Park has two ball fields, an ice skating rink and a hockey rink. The open fields provide ample space for football and soccer games. Officers assigned to Centerville Each city has officers assigned to them to __-__ __ _ address problems and concerns. Utilizing our "= TV _ Problem Orientated Policing (POP) strategies, .atethese officers would be directed to handle � �� yn up"incidents specific to Centerville: '" $ 'rr'�r sa r Matt Langreck mlangreckAclpdmn.com I�MON r " 763-785-2501n'a': 'Wm. adr Its Aron Sandmann asandmannna,clpdmn.com 763-784-2501 T��t e ` =7,11 r+w aro s Jeff Tamowski jtamowskiAclpdmn.com M- =.� 763-784-2501 Cenknniri(Lol�f Pofee rrbwf 12014 ANNUAL REPORT Crime Report Part one and two crimes continued to drop during 2014. In 2014, there were 157 reported part one or two crimes. There were 168 reported incidents in 2013. That is a decrease of almost 7%. There are several crimes that would be classified at part one and two. The most notable of these would be: DWI,Narcotics, Person on Person crimes, i.e. Assault and Robbery, and Theft etc. Part three, four and five crimes did rise almost 22% from 2608 incidents reported in 2013 to 3329 incidents in 2014. Part three, four and five crimes are any other police contacts. The most notable crimes under these classifications would be Traffic violations, Ordinance Violations, Medicals, Residential and Business Alarms, and Animal Complaints, etc. The reason for such a high spike in parts 3, 4 and 5 contacts is due to three specific POP (Problem Oriented Policing) projects, as well as the numerous contacts with barricade violators during the construction of Centerville Road. Enforcement during the construction project produced 105 contacts. Our officers implemented projects that focused on overnight parking, open garage doors and open ignitions. These three POP projects resulted in 890 contacts in 2014. These projects helped educate the public on crime deterrence, as well as the familiarization of local ordinances. Community Events The Centennial Lakes Police Department participated in several community events throughout 2014. These events are a great opportunity to meet, and in most cases get reacquainted with, the citizens and business owners. Some of the events attended by our officers and/or reserve officers were: - Fete de Lacs Carnival - Fete de Lacs Parade - Celebrity Softball Game - 8K Run - St. Genevieve's Chicken Dinner -Night to Unite - Centerville Elementary Carnival - Lions Club Ice Fishing Tournament The main focus of the Centennial Lakes Police Department is community service. Whether it is through the importance of traffic safety, or the general interaction with business owners, our department's goal is to gain the feeling of security Cen(8nM4(Za[Qes Poke ge(urbWnf 12014 ANNUAL REPORT ' from all of our citizens and business owners. Unlike in larger cities, most of our officers are recognized by your citizens on a first name basis. We take pride in having great rapport with everyone within the community. Through our POP program our officers are persistent in eliminating trends in crime. Any patterns that are recognized, will elicit extra patrol. If there are any residences deemed problematic, they are exposed to heightened police presence. We attribute our low crime rates due to our high visibility patrol. High visibility, and the likelihood of a squad car being close, is an effective crime deterrent. The Centennial Lakes Police Department takes pride in our police service to the public. Several officers can be seen regularly at Chauncey Barrett's social functions. We have a great relationship with the staff at the Centerville Elementary School. You will find us conducting regular walk-throughs and providing presence in the area of Centerville Elementary before and after school. We are almost always the first responders on scene at medical incidents, and we still perform vehicle lock-outs on a regular basis. Regularly we receive comments from citizens expressing how often they see our officers in the neighborhoods and out on patrol. As demonstrated by our statistics, we are consistently seeing a drop in Part I and 11 crimes. Our police presence is minimizing serious crimes in your city. The increased number of police contacts in your city demonstrates the commitment the Centennial Lakes Police Department has in educating, enforcing and ensuring the safety of all your residents. 4 � , p- ♦ r Centerville City Hall Cenfenni Z4[V.c'once inimenf 12014 ANNUAL REPORT C Je ity of LexLnflton In the southeastern corner of Anoka County along Lake Drive (County 23) and just west of Lexington Avenue lies the city of Lexington, MN. On May 5t', 1950, an election of settlers was held to incorporate the city. The city's name and history rests in the honor of the battalion of one man instrumental in r organizing the petition for the new village y (information provided by the city of Lexington's t website, (http://www.ci.lexinton.mn.usThis small northern suburb of the Twin Cities is just a little under one (1) square mile and is home to approximately 2,049 residents (according to the 2010 U.S. Census Bureau). The small suburban junction is unique to many in that it is part of a Joint Powers Agreement with its police department that serves the n citizens of three tightly knit communities including Sergeant Kris Carlson Centerville and Circle Pines. Lexington is one city amongst four others located in the Centennial School District (ISD 12) which serves approximately 6,300 students in nine (9) schools ranging from elementary to high school. Centennial School District boasts a graduation rate in the top of its class at 99% and continually scores higher than the state average in math and reading. Students from all cities including Lexington enjoy a number of academic and sporting activities while receiving a high class education. Lexington is host to a variety of businesses, retail shops, restaurants and nightlife. As a city just off of tt�twvadeo�a = �Eou,oaGxo F the main thoroughfare, it offers such attractions as g � -; ►'' the Northway Shopping Center which leases to a ELEXI /j6NMrA number of small, thriving businesses including 52 anchors like Festival Foods and O'Reilly Auto ; r r L`0"tOi�D1� Parts. This main mall in the heart of Lexington also i MWwNiru9 14rr $ offers retail and dining such as Northway Tobacco, i ,n CIixINGT4J At The Beach Tanning, Annie's Wok and one of its .. c pins newest members to the business community, El Loro Cantina and Restaurant. Residents and visitors alike often enjoy the local nightlife at Bamboo Betty's and Cowboy's Saloon, a local nightlife entertainment venue relished for many GRID A years in the city of Lexington. cenfCnnia AAVs PoAce veparfmmf 12014 ANNUAL REPORT • In the city of Lexington, Lexington Memorial Park rests just beyond the reaches of the Parkview Mobile Home Community. Lexington Memorial Park is the city's hub for the area's Little Leaguers during the summer baseball season. During the season, a number of tournaments, games, and gatherings take place on any one or all five (5) of the ball fields throughout the park. And to provide entertainment for the kids not playing any sports or to provide daycare entertainment and relief during "field trips" throughout the year,there's a playground area in the center of the park. There's year-round recreation available at the park for citizens to enjoy and relax with family, friends and neighbors. +t1. gat ------------------ 'b g Centennial Lakes Police Department has been the city's local law enforcement since 1954, when Joseph Matzke became the first Lexington Police Officer. The first Joint Powers Agreement between cities occurred in 1975 when Circle Pines Police Department and Lexington Police Department joined forces and was governed by a commission rather than city council(s). On January 1St, 2000, the three cities of Centerville, Circle Pines, and Lexington joined together to form the newly established Centennial Lakes Police Department which serves as one of the state's rare joint law enforcement agencies (facts from the department's history section at http://www.centenniallakespd.govoffice2.com/). Since that time, the department and its officers have worked hard to provide the most effective and efficient police services applying the tools of both Community Oriented Policing (C.O.P.) and Problem Oriented Policing (P.O.P) to work alongside the community to solve neighborhood issues and crimes, and to integrate local law enforcement into the communities they serve. This concept of C.O.P. and P.O.P. allows the Centennial Lakes Police Department to proactively approach a variety of events, incidents, and situations, and establishes working relationships with citizens and businesses that have been an integral part of such a close community. ce"fe""Ifi(AAf4p1'POf10E a�Plat menf 12014 ANNUAL REPORT As the Lexington community's liaison, I am proud to be serving the city as a sergeant with the Centennial Lakes Police Department. I have been a part of this department for over ten (10) years and have enjoyed being a part of all three communities we serve as an agency. I have lived in the area for over twenty (20) years and am honored to serve and protect the communities I have grown so fond of. I look forward to a safe and successful 2015 working with community members and businesses in the city of Lexington and remain committed to our motto of"Safety, Community, Service". r " Lexington City Hall &nfennia(ZA[[-s Poke OeMrfmmf 12014 ANNUAL REPORT City Ll e atson 0 , ersWc Each city has officers CENTERVILLE'S LIAISONS assigned as liaisons to Sergeant Pat Aldrich address that city's specific paldrich(aclpdmn.com needs. Officer Matt Giese m ig_ese(a,clpdmn.com While every officer patrols all Officer Matt Langreck three cities, liasons handle mlan reck clpdmn.com issues sWific to their Officer Aron Sandmann asandmann(a,clpdmn.com assigned city, CIRCLE PINES' LIAISONS LEXINGTON'S LIAISONS Sergeant Russ Blanck Sergeant B. J. Stepan rblanckgclpdmn.com bstepan(a,clpdmn.com Detective Kris Carlson Officer Andy Dixon kcarlsonna,clpdmn.com adixongclpdmn.com Officer Jon Krueger Officer Bill Jacobson jkrueger(a,clpdmn.com wjacobson(a,clpdmn.com Officer Jeff Tarnowski Officer Angi Kruyer itarnowski(a clpdmn.com akruyerAclpdmn.com Officer Jaren Zech Officer Shane Werneke jzechgclpdmn.com swerneke(a,clpdmn.com VO&C geparfMent 12014 ANNUAL REPORT Investw" at w"' ns The investigations division remained a strong resource for the citizens of Circle Pines, Lexington, and Centerville in t 2014. Working closely with agencies and personnel throughout the county and state, Detective Carlson ' followed up on, investigated, and assisted with major cases that originated in the jurisdiction of the Centennial Lakes Police Department. Collaboration is important to the success of any investigation, and Detective Carlson maintained and continued to build strong relationships with the Anoka County Criminal Investigation Division, and numerous detectives and investigators throughout Anoka County and the metro area. It is these relationships that helped Detective Carlson work effectively in the community to Detective Bill Jacobson solve or clear a majority of cases that he worked on. In 2014, CLPD investigations handled 108 cases. Most of these cases were retained by CLPD and 72% of them were cleared. This case load is down five from 2014, but does not include cases in which Detective Carlson merely consulted on with patrol or other detectives. The majority of cases were cleared by arrest. A total of 12 cases were forwarded to other agencies. Only 18 cases were marked as inactive due to a lack of suspects or leads. The following are some of the other statistics for 2014: - CLPD investigated 20 larceny/theft cases in 2014 - CLPD investigated 18 assaults or aggravated assaults in 2014 - CLPD investigated 10 burglaries in 2014 - CLPD investigated 10 narcotics crimes in 2014 - CLPD investigated 4 death or suicide scenes in 2014 - CLPD investigated 1 forcible rape in 2014 - There were no homicides or arson cases that had been initiated or followed up on within Centennial Lakes Police Department in 2014 Other duties of the CLPD investigations included assisting patrol with basic investigations and follow up, reviewing national, state, and local informational alerts and passing on relevant information to CLPD patrol and administration, completing numerous employment background checks for new CLPD hires and other city staff, completing background checks for various city permits, and other duties as needed or directed. Ge'nfeMnA(44[0s Police Veparbned 12014 ANNUAL REPORT In 2014, patrol officers assisted CLPD Investigations by routinely handling the basic investigation of incidents they responded to, developing and following up on leads, collecting evidence and tracking cases. The patrol division also participated in taking statements and assisted with other investigative functions. In 2014, a number of felonious cases had been handled and resolved at the patrol level resulting in numerous convictions for a variety of cases, continuing the diverse development and training of each patrol officer. The hard work of Detective Carlson, CLPD patrol and supervisory staff, and the agencies CLPD collaborated with in 2014, led to the prosecution, conviction, and incarceration of a number of felony suspects. These efforts have increased the safety and security of the citizens in Circle Pines, Lexington, and Centerville. w� �,- s Cenknnia`.Cake1 POAM 19eWF[MMt 12014 ANNUAL REPORT Communt"tuoecs POLICE DEPARTMENT TOURS 'f The Centennial Lakes Police Department offers tours of our facility throughout the year. Tours are given to residents, scouting groups, and elementary school classes. A police department tour allows citizens to get an idea of the facilities and equipment that police officers use on a daily basis. Information given during tours can be tailored to fit the objective of each specific group. NEIGHBORHOOD CRIME WATCH ;. Neighborhood Crime Watch Groups are designed to band neighbors together in hopes of preventing crime in the community. These organized groups watch out for one another. In order to stay active in the Crime Watch Organization, these groups must hold meetings twice a year. These meetings can be held at a residence or in a public location. i For more information on Crime Watch Groups or if you would like to start one in your neighborhood, please contact a CLPD Crime Prevention officer. WARNING OPERATION IDENTIFICATION Operation Identification is a citizen's burglary prevention program for use in homes and businesses. The Operation ID program involves the marking of . E property with an identifying number as a means of discouraging burglary and theft. When stolen property is recovered, officers are able to track ownership OPERAI LD' and return the property in a timely manner. The police department offers the tools and assistance to properly mark and record all valuables and property in your home and/or business. HOME AND BUSINESS SECURITY SURVEY This program is free to all residents and businesses of Centerville, Circle Pines and Lexington and includes a review of your home or business' windows, doors, locks, outside lighting, and landscaping. Department personnel will alert you to burglary vulnerabilities and other security weaknesses. CEnfc�7niRf.CAkes Dolce Veparhwd 12014 ANNUAL REPORT SPEED TRAILER ,_.7, To ensure the safety of our communities and combat speeding, the police department routinely utilizes our speed trailer. The speed 30 trailer aids officers and the community by reminding drivers of the posted speed limit and displaying each vehicle's speed. The # department receives frequent requests by citizens for the speed trailer to be placed near their residence. The speed trailer becomes available in spring and is used throughout the year until the first substantial snowfall. PROJECT ROCKET The Centennial Lakes Police Department has been promoting an innovative program for families who have children with special needs. Project ROCKET (Response Outline Created for Kids and Endangered Teens) is a program developed to better prepare law enforcement and public services when dealing with crisis situations involving children with special needs. This project alerts 9-1-1 dispatchers when a home has a child with special needs. Imperative personal information regarding the special needs child is entered into Anoka County Central Communication's hazard files. When a call from a residence comes into ACCC, the dispatcher is able to provide officers with a physical description, any medical diagnosis, and address guide to nearby properties with potential hazards, details on how to best approach the child, how they respond to authority, and whether they are verbal or non-verbal. Parent or guardian information is also provided through the dispatch system. All information regarding Project ROCKET is kept on file with dispatch as well as the police department. Should information need to be updated, it can be changed by contacting the police department. This program helps to minimize certain challenges to law enforcement and emergency service personnel by making responding to calls more efficient. If you have or know of a child with special needs that would benefit from this program we urge you to contact CSO Wressell. LAW ENFORCEMENT TORCH RUN Every year the Centennial Lakes Police Department supports the „,le. Special Olympics by participating in the Law Enforcement Torch Run. The Torch Run is an actual running event in which officers and athletes run the "Flame of Hope" to the Opening Ceremonies w of local Special Olympics competitions. Runners from all over the state are joined by officers from Centennial Lakes Police as the run travels through our cities. Funds } collected by the Torch Run benefit the Special Olympics and surrounding communities. C6nfeMn;A(. 1VS!P0t1CC Vetfitdymnf 12014 ANNUAL REPORT BIKE SAFETY Our Community Service Officers are available to help teach bike safety to any youth group. Officers are available to teach classes of most sizes at various locations within Circle Pines, Lexington, and Centerville. Officers can teach the fundamentals of bicycle riding, bike safety, and can tailor the lesson to fit specific groups. SCHOOL PARADES AND COMMUNITY EVENTS Each year officers of the Centennial Lakes Police Department assist in various community events in Circle Pines, Lexington, and Centerville. CLPD is available to participate in events such as: school parades, community parades,marathons, contests, and much more. VEHICLE LOCK-OUTS Each year the Centennial Lakes Police Department responds to numerous calls for vehicle lock- outs. CLPD is happy to provide this service to residents of Centerville, Circle Pines, and Lexington free of charge. If you lock your keys in your car, day or night, we are here to help. POLAR BEAR PLUNGE % Each year, hundreds of brave participants take the frigid plunge into icy waters in support of the Anoka County Polar Bear Plunge that benefits Special Olympics Minnesota. Officers of the Centennial Lakes Police Department are proud to be a part of this event which raises thousands of dollars towards a great cause. CenknniaffAfyu POfiCe Gl ortment 12014 ANNUAL REPORT NIGHT TO UNITE The Centennial Lakes Police Department has ; participated in Night to Unite every year since 2009. Night to Unite is a community event held annually on the first Tuesday in August. In 2014, officers visited seventeen scheduled block parties in Centerville (9), Circle Pines (6), and Lexington (2). Residents were joined by law enforcement officers, local officials, CERT members, fire fighters, paramedics and representatives from the Centennial School District. They were able to voice their concerns about crime with officers and discuss events held within the community. Goodies such as water bottles and wrist bands were handed out to children to promote safety and crime prevention. Many children had the chance to meet McGruff the Crime Dog and take photos with him. SAFETY CAMP Safety Camp is a yearly event developed to increase a child's knowledge and awareness of all aspects of safety. Centennial Lakes Police Department works in partnership with Lino Lakes Police, Centennial and Lexington Fire, North Ambulance and Parks & Recreation Departments .aT to host the event. Topics covered at the camp include: bike safety, fire safety, drug safety, water My mCAMP safety, personal safety, electrical safety, outdoor safety, and first-aid. The camp is set up to be educational and fun. Police Officers and Community Service Officers work as camp counselors and teachers during this event. Police Explorers and Police Reserves also volunteer their time to make the event a success. Cents»nine € s Poke Apartment 12014 ANNUAL REPORT PRESCRIPTION DRUG TAKE BACK PROGRAM The Centennial Lakes Police Department provides an ongoing prescription drug take back program. We will accept unwanted prescription drugs from non- hw7t_: } commercial residential users only. No syringes, needles, or other hazardous materials are accepted. Participation in the program is free and anonymous. All prescriptions are disposed of with "no questions asked." Prescription drugs can be brought to the Police Department Monday through Friday from 8:00 a.m. to 4:30 p.m. Y Old and unused medicines in a home can pose a risk for accidental poisoning, theft, and drug abuse. Also, medications disposed of in a sink, toilet, or landfill can eventually pollute surface and groundwater and harm fish and wildlife. Instead of flushing or throwing unused medications in the trash, drop the drugs off for safe and free disposal VACATION HOUSE CHECK Officers will check your home periodically during your absence, whether you are gone for days, weeks, or months. Call a few days before leaving and we will add you to the house check list. anfennia(Cakes PoficeVepadmenf 12014 ANNUAL REPORT • rn �rohfce Reserves The Centennial Lakes Reserve Officer Unit is comprised of community members who volunteer their time to fulfill several roles around the Police Department. The Centennial Lakes Police Department is proud to have Reserve Officers willing to get involved for the better of their community. Reserve Officers are uniformed and look similar to a sworn Police Officer. Reserve Officers perform a wide variety of duties including patrolling in a marked squad car or assisting with crowd control at an event. Reserve Officers also assist sworn officers with their duties and in some cases Reserve Officers respond to non-emergency calls for service. Reserve Officers perform a number of non-uniformed services such as assisting at the gun range or role playing during training events. Each member of the Reserve Unit receives extensive training that begins with attending the Anoka County Reserve academy. This academy meets twice a week for two months and once complete, Reserve Officers begin a field training program during which they ride with sworn officers and become efficient with a number of tasks. ' Reserve Officers receive training in defensive tactics, impact - `_ weapons, radio use,patrol tactics and traffic direction. J Once Reserve Officers complete field training they are allowed to patrol in a t- marked squad car. Some of the duties a Reserve Officer may perform are prisoner transports, crime scene security, motorist assists, animal impounds, and numerous community 1 events. The Centennial Lakes Police Department accepts applications year round for the position of Reserve Officer. The hiring process consists of a panel interview with the Reserve -m---. Coordinators, followed by a ride-along, then a complete Reserve Officers participating at background investigation, and finally an interview with Captain the 2014 Anoka County Reserve Nelson. Reserve Officers are required to volunteer a minimum Academy and graduation. of 16 hours per month. Upon completion of training, all equipment is provided to each Reserve Officer. Many Centennial Lakes Reserve Officers have gone on to work as sworn officers for a variety of police/sheriff's departments including Maplewood, Forest Lake, Coon Rapids, Washington Canfenniaf,L'ifIx 904ce 0YMr6Mnf 12014 ANNUAL REPORT County, Hennepin County, Sherburne County, Oakdale and Champlin. Also a number of current Centennial Lakes Police Officers worked as a Reserve Officer previously. Our reserve unit is a valuable asset to our department. We very much appreciate community members willing to donate time. I believe our Reserve Officers would agree it is a positive and enjoyable experience being a part of CLPD. Reserve Supervisor/ Officer Shane Werneke L � L F CenfenniGa�LAkcs 904ce AMrfinenf 12014 ANNUAL REPORT Communitv, Em- Resvonse, CERT (Community Emergency Response Team) is a well-trained and highly motivated group of volunteers available to assist the police and other emergency responders in the event of an emergency. CERT lessens the burden on first responders and provides valuable assistance to community members who might otherwise have to wait longer for services. Being ready and prepared at all times is what sets CERT members apart. This past year team member Brenda Welsch created a very informative guide for the team regarding CERT deployment readiness bags, preparedness ideas, and numerous other suggestions making it easier for team members to be ready to respond when summoned. This past year CERT partnered with the Lino Lakes Police Department's CERT for a training exercise. A realistic search and rescue scenario was crafted using open space in Lino Lakes. Five people were lost and injured as part of the scenario, and teams organized and deployed to find these parties. It was an excellent learning experience and provided a new set of skills for both teams. As CERT Coordinator Michelle Lakso stated: "Looking for a lost person in terrain such as woods or fields is like looking for , a needle in a haystack, if you overlook or disregard one small and unassuming area, that might just be where the person or the evidence is r located. It was a very challenging day." CERT members also had the opportunity to learn about the role of medical rj - helicopters in disasters and other events. z This year our CERT and the Lino Lakes Lino Lakes CERT members were part of j F a medical helicopter training where they had a chance to review the on ground issues of a helicopter landing and taking off as well as had the opportunity to talk to the pilots and paramedics and have a look inside. In addition to training, CERT assists police and fire in non-emergency situations and events as needed. This past year was the fourth year in a row CERT assisted the Lexington Fire Department on behalf of the Centennial Police Department along the Annual G'El?f nni414,-4r POW 19JORthmni 12014 ANNUAL REPORT Flash and Dash 5K route. CERT members monitored runners, helped with traffic control, and handed out water at the water stations along the route. It turned out to be a very nice day for the event! This past year was also noteworthy for the addition of Officer Shane Werneke as an additional police department liaison to CERT. Shane brings enthusiasm and demonstrated commitment to community safety to CERT. CERT members give generously of their time with little notice and no financial remuneration. They maintain a state of readiness and are always ready to respond and assist when needed. The team members are a strong asset to the community's emergency management capabilities. Having this amazing group of people with the ability to respond to an event impacting their community at a moment's notice is the basis for an effective community disaster response. x Centennial Lakes CERT assisted with the Annual Lexington Flash and Dash 5K. From top left:Jill Perron, Dennis Maki, Marc Brandt Michelle Lakso(Centennial Lakes CERT Coordinator) with Dennis Maki, Marc Brandt,Tim Krehl Genfennia(.&iis Pot ce Ve�arfinenf 12014 ANNUAL REPORT dice i awl Receiving a call from an Anoka County Dispatcher or a Centennial Lakes Police Officer to assist at a traumatic crisis or death scene comes at any hour or day. When a request for assistance involves individuals or families personally known to me, as was the case during three incidents this year, I am most appreciative of the dedicated mentors who provided my training so that I might provide the comfort and support needed at such difficult and emotionally trying times. Congruently, all Centennial Lakes Officers are closely involved in our three communities and the greater Centennial area. This year was particularly demanding upon them as Chaplain Joel Heckman several traumatic incidents involved local citizens that they or their immediate family members have associated with. As such, many hours were dedicated to providing support, counsel, advice, spiritual and practical guidance to our officers and community members in conjunction with eight traumatic incidents. I count it an enormous privilege to serve alongside each Centennial Lakes Officer and Staff Member and I'm most thankful to them for their devoted service to our residents and those visiting our area. Nationwide, numerous negative media reports on police activities and actions have taken place. To those called to serve and who do so without prejudice and partiality, public guilt by association adds to the stress and demands of the job. One of many opportunities afforded to our neighborhoods by our steadfast officers is their vigilant patrol. As you have opportunity to interact with them, let them know of any concerns you may have and if appropriate share your support of them. While remembering our officers, support staff, administration, reserves, CERT team, operations committee, joint police governing board, mayors and councils in prayer remains ongoing and a major part of my support, my service of presence, understanding, healing and hope is brought to each traumatic crisis or death scene I am called to regardless of race, color, creed, religion, ancestry, national or ethnic origin, age, gender, disability, sexual orientation or familial status. Respectfully, MEQ I �. Joel Heckman Cenfennift(A c V06ce 196parfm t 12014 ANNUAL REPORT . ct l i e orfs SUMMARY INDEX CRIMES SUBMITTED TO STATE FOR 2014 UNIFORM CRIME REPORT Percent 2014 Adult Juvenile CLASS I CRIMES 2013 2014 Chane Arrests Arrests Arrests Homicide 0 0 0 0 0 Rae 0 1 1 1 0 Robbery 3 1 -66% 0 0 0 Aggravated Assault 9 10 +11% 8 7 1 Burglary 9 29 +222% 1 1 0 Larceny/Theft 101 125 +23% 9 8 1 Motor Vehicle Theft 12 9 -25% 0 0 0 Arson 2 0 0 0 0 Class I Totals 136 175 1 +27% 1 19 17 2 Percent 2014 Adult Juvenile CLASS Il CRIMES 2013 2014 Chan a Arrests Arrests Arrests Simple Assault 46 40 -13% 35 29 6 Disorderly Conduct 15 19 +26% 1 19 16 3 Drugs/Narcotics 86 85 -1% 83 75 8 DUI 152 93 -38% 93 93 0 Embezzlement 0 0 0 0 0 Family/Children 7 2 -71% 1 1 0 Forgery/Counterfeiting 1 5 +400% 0 0 0 Fraud 4 8 +100% 5 3 2 am ling 0 0 0 0 0 Liquor Law Violations 23 11 -52% 11 10 1 Prostitution 0 0 0 0 0 Sex Offenses 4 4 0% 4 3 1 Buy/Receive/Possess Stolen Property 0 6 6 5 1 Vandalism/Damage to Property 68 48 -29% 5 5 2 Weapons Violations 6 5 -16% 5 3 2 Other Class II Offenses 155 159 +2% 115 87 28 Class 11 Totals 567 485 -14% 382 330 54 &nknnia(AAfss Ponce Vepanitwnf 12014 ANNUAL REPORT Activity- andIncident Pxv rts 0� Ifto, OFFENSES JUVENILE ����� �� ��u��������� Offense 2013 2014 Juvenile Alcohol 13 10 6 Juvenile Tobacco 12 9 4 Juvenile Curfew 18 9 11 -----'--- '---- - --- - -- ---' ---- -'-- ------------------' --- -------- 2" r - - - - -' - - --' - -' --- '' - -- - ----' _- - 18 f-----�------�--�-'------------------------- Activity andIncident Reports 2014 Citations/Warnings - • 2000 :11 .1/ - 1400 - r 1200 t00% 111 _d*. - - 11 0 400 11 f Non-Traffic Traffic ParkingFix-It affic • Citationsarking Citations Citations Warnings Warnings Warnings Seriesl I3 1332 • • • • ... 2014 Citations Issued Traffic Related ` Speed K Seatbelt 296 r Insurance Violations 12 K Driver License Violations 0 Vehicle Registration 73 Violations Parking Violations Other Moving Violations Cen(MA01MO-s PO4m 96pat-bMnf 12014 ANNUAL REPORT AdMay Inc W_ 2014 Non-Criminal Activity Miscellaneous Incidents 2012 2013 2014 Accidents —Motor Vehicle 105 124 130 Alarms 196 252 236 Animal Bites 7 10 12 Animal Complaints/Animal Impounds 223 228 158 Assist Other Departments/Agencies 501 559 541 Case Follow Ups 475 411 479 Deaths/Suicides/Suicide Attempts 25 22 15 Domestics 150 182 169 Found Bicycles 20 18 18 Found Persons/Animals/Property52 66 67 House Checks/Extra Patrol Requests 171 126 140 Lock Outs —Vehicle/Residential 142 153 152 Lost Persons/Animals/Property 36 43 33 Medicals/EmergencyMedicals/Emergency Medical Holds 361 433 423 Noise Complaints 110 71 61 Oen Door/Gates/Windows 80 213 581 Ordinance Violations 344 255 155 Permits to Purchase 138 142 110 Suspicious PersonsNehicles/Other 841 862 857 Warrant Arrests/Attempts 90 98 76 Other Miscellaneous Incidents 1596 1683 1563 &nfenni,a(Mtes Polve i9eparfinenf 12014 ANNUAL REPORT Acti"Vity- andincident Reports 2012 2013 2014 3507 3401 4022 ' 4114 3999 3679 4285 4162 4043 659 582 580 12 250 12144 12 324 2014 Accidents by Month / City + December + November o { October ' Ia Centerville September August i July ■Lexington June I � � May ■Circle Pines i April i March February January17, 0 1 2 3 4 5 6 7 8 CWMnfa &C -f Poke VepafbWd 12014 ANNUAL REPORT = 2015 ALANAG PLAN Organizational Goals and ObjectiVeSfOr 205 c6nfMW4rJ5($f!PorM'AepMPImegE 12014 ANNUAL REPORT 201.5 ManegementCa %001 STRATEGIC FRAMEWORK/PRINCIPLE FOCUS AREAS Our principle or primary strategic goals serve as a guide for the activities and direction of our personnel and as a framework for annual operating objectives: Strategic Goal #1: Fight Crime and Enhance Community Safety We are committed to fighting crime and enhancing community safety in our three cities through the development of proactive crime suppression tactics and problem-oriented policing techniques that focus on addressing safety issues. Strategic Goal#2: Improve Organizational Effectiveness and Professionalism We recognize the importance of supporting the needs of our employees in the performance of their duties by improving communication throughout the organization, providing training opportunities, promoting professionalism, and attracting and retaining a skilled and diverse group of employees. Strategic Goal #3: Promote Community Support and Involvement We are committed to further enhancing the delivery of our safety services by providing strong customer service, strengthening our communications with our citizens, promptly addressing community concerns, and engaging in collaborative community and citizen partnerships. Strategic Goal#4: Enhance Innovation and Technology We will advance our organization by incorporating new technology as well as the very best in law enforcement and public safety practices into our operations, challenging traditional policing methods, and successfully managing the diverse range of information technology systems and infrastructure available. anfenniaf.Cafl.r Police Veparfinenf 12014 ANNUAL REPORT LAKESCENTENNIAL fpoLl E�r 212 ---"NNW CENTENNIAt LAKES 8 ara •:• Centennial Lakes Police Department 54 North Road Circle Pines, MN 55014 763-784-2501 phone 763-784-0082 fax www.clpdmn.com CenfOMMIZO(VI Poke VeP4Fb enf 12014 ANNUAL REPORT CITY OF CENTERVILLE CITY COUNCIL MEETING April 8, 2015 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held their regularly scheduled meeting of April 8, 2015 at City Hall, 1880 Main Street. PRESENT: Mayor Tom Wilharber Council Member Jeff Paar Council Member Steve King Council Member D. Love Council Member Ben Fehrenbacher ABSENT: None. STAFF: City Administrator Mike Ericson - - Legal Counsel Kurt Glaser City Engineer Mark Statz Planning&Zoning Commissioner Russ Koski I. CALL TO ORDER Mayor Wilharber called the meeting to order at 6:30 p.m. II. PLEDGE OF ALLEGIANCE III. APPOINTMENTS/PRESENTATION 1. State Senator Roger Chamberlain Senator Roger Chamberlain introduced himself to Council, stated that he recently had an Opinion Column article that was published in the Quad Press regarding ground water, White Bear Lake water levels, Metropolitan Council (Surface Water Conversion plan), the Department of Natural Resources (Ground Water Management Area plan), and the White Bear Lake Conservation District. Senator Chamberlain strongly believes that the United States Geological Service study has not been completed and it is very premature to consider the Surface Water Conversion plan or the Ground Water Management Area plan until such time as it is complete. Senator Chamberlain stated that until the extent of interaction between the aquifer, the lake and natural events such as runoff and evaporation are determined the proposals could have wide ramifications on businesses, citizens and municipalities. Senator Chamberlain stated that several legislators have drafted legislation to request funds for feasibility and designs for a regional wastewater system which would allow for use of the 1 City of Centerville Council Meeting Minutes April 8,2015 regions own water allowing the aquifer to recharge and augment White Bear Lake if necessary. Senator Chamberlain also stated that other efforts are being made to request funding for a northeast regional water supply plan to determine additional alternatives to what has been proposed by the Met. Council and the Department of Natural Resources. Senator Chamberlain stated that the local communities continue to work on conservation of water and have set examples for others in the state. Council Members questioned their role going forward and Senator Chamberlain stated that communities needed to be involved and if requested to, speak with legislators regarding the issue and realities of imposing fees on businesses, citizens and communities for plans that do not involve their input or facts of studies. 2. Severe Weather Awareness Week—April 13-17, 2015 Administrator Ericson stated that each year Homeland Security and Emergency Management in collaboration with the National Weather Service and 16 State and local agencies and organizations sponsor Severe Weather Awareness Week in Minnesota. The week is designed to refresh, remind and educate everyone about the seasonal threats from severe weather and how to avoid them. It's also a great time to make and practice your emergency plan and build or refresh your emergency preparedness kit. Two of the most important events during Severe Weather Awareness Week are the annual statewide tornado drills when sirens across the state will sound. These drills are scheduled for Thursday,April 16, 2015 at 1:45 p.m. and 6:55 p.m. Outdoor warning sirens and NOAA Weather Radios will sound in a simulated tornado warning. The first drill is intended for institutions and businesses. The evening drill is intended for second shift workers and families. If you would like additional information, click the photo above for the Department of Public Safety, Homeland Security and Emergency Management. IV. PUBLIC INPUT/HEARING 1. Mr. Charles Reinhardt, Neighbor Property Line/Fence Update — Mr. Reinhardt stated he had contacted Mediation Services and they reported that they had forwarded two (2) letters and attempted to make telephone contact with his neighbor. Mr. Reinhardt had concerns for adverse possession of his property. Attorney Glaser stated that Mr. Reinhardt's concerns regarding adverse possession are unfounded due to the fact that he is bringing it to the attention of the City and the neighbor. Attorney Glaser stated that he would attempt to make contact with the neighbor, advise participation in mediation or the City would take alternative steps to resolve the matter. Attorney Glaser stated that it appears that a neighborly relationship could be promoted at this point if both neighbors showed willingness to participate in mediation and he desire to approach this issue in this matter. Page 2 of 7 2 City of Centerville Council Meeting Minutes April 8,2015 2. Ms. Robyn Moore, Glyphosate (Roundup) Update - Attorney Glaser stated that Minnesota State Statute 18B.02 preempts the City's ability to ban the application of this product and Ms. Moore should address her concerns to her State Representative or Senator Chamberlain. Mayor Wilharber stated that staff included 85 pages in the packet for Council review of the product, its hazards and what other states are doing regarding regulation. Mayor Wilharber thanked Ms. Moore for drawing Council's attention to the matter. V. APPROVAL OF AGENDA Mayor Wilharber added Check #29283-29291, Item #1. Colored Concrete Replacement Downtown Intersections —Bid Form and added pages 85a-85d under IX. New Business, Item #2, pages 89a-89c, Item #3, d. Lake Level, Water Supply Solutions Premature, Pages 102-103 under X. Council & Administration Announcements, Administrator Report. Old business Concrete replacement bids. Motion by Council Member Paar, seconded by Council Member Love to approve the Agenda with the above stated amendments. All in favor. Motion passed VI. APPROVAL OF MINUTES 1. March 25, 2015 City Council Meeting Minutes Mayor Wilharber provided Council Members with an opportunity to amend the presented minutes. Motion by Council Member Paar, seconded by Council Member Kine, to approve the minutes of the March 25, 2015 City Council Meetiny- as presented. All in favor. Motion passed. VII. CONSENT AGENDA 1. City of Centerville March 26, 2015 through April 8, 2015 Claims (Check #29265-29282) & (Check #29283-29291) 2. Centennial Lakes Police Department Claims through March 31, 2015 (Check #10320- 10333) wNoided Check #10286 3. Centennial Fire District Claims through April 2, 2015 (Check #6854-6878) w/Payroll (Check#6845-6853) 4. Approve the Hiring of Four (4) Public Works Seasonal Employees (Joe Drilling, James Huisenga, Aaron Brown & Gavin Farley) Mayor Wilharber provided Council Members an opportunity to pull items from the Consent Agenda for additional discussion. Council Member Love requested that Item#4 be pulled for additional discussion. Page 3 of 7 3 City of Centerville Council Meeting Minutes April 8,2015 Motion by Council Member Love, seconded by Council Member Fehrenbacher to approve Consent Agenda Items 1-3 as presented. All in favor. Motion passed Council Member Love questioned the residency of the four (4) individuals slated for hiring. Administrator Ericson stated that three (3) of the individuals have worked for the City in the past and that all were residents of the City. Motion by Council Member Love, seconded by Council Member Paar to approve Consent Agenda Item 4 as presented. All in favor. Motion passed VIII. OLD BUSINESS 1. St. Paul Regional Water Sixth Rider to Agreement Administrator Ericson stated that the items was previously approved by Council, however, subsequent to review by the Board of Commissioners Legal Counsel additional language modifications have been made. Attorney Glaser concurred and stated that they made minor changes to protect themselves, the City and would recommend Council's approval. Motion by Council Member Fehrenbacher, seconded by Council Member Paar to approve the St. Paul Regional Water Sixth Rider to Agreement as presented Council questioned language regarding liability and Attorney Glaser stated that the work is essentially completed. All in favor. Motion passed. 2. Research Update on Glyphosate Discussed previously. Council Member King stated that he understood that the City could not ban the use of the product but the City could set a good example to others by not utilizing the product on City property and by informing residents of the potential dangers associated with its use. Administrator Ericson stated that Council requested that he contact the League of Minnesota Cities regarding the matter and they do not have a stance on the matter. Administrator Ericson stated that the City contracts with a vendor to apply annual fertilizer to City owned property, the vendor believes and utilizes only amounts authorized by the product label, does not contain active ingredients that either the International Agency for Research on Cancer or the EPA have classified as known or probable carcinogens nor are likely to be carcinogenic, dilutes the fertilizer or weed control mixture with 92% water and only treats those areas that are problem and does not"blanket" an entire area. Page 4of7 4 City of Centerville Council Meeting Minutes April 8,2015 Discussion ensued regarding placing alternative restrictions on Glyphosate's use such as mandatory posting of areas that have been treated by either private property owners or the City, educational promotion, limiting usage times, i.e. evening application, etc. Council consensus was that no action was needed on this item at this time. IX. NEW BUSINESS 1. Colored Concrete Intersections (Centerville Road/Main Street and Progress Road/Main Street)Downtown Area Reconstruction Bids City Engineer Statz stated that he has received two (2) bids for removal of the colored concrete and replacement with asphalt. He also stated that he received a bid from the City's contractor for the 2015 Mill and Overlay Project and the contractor completing the CSAH21/Centerville Road Project. Engineer Statz stated that the low bidder was Arnt Construction and he felt that as they are the contractor on the CASAH21/Centerville Road Project they would be more equipped to coordinate traffic control, etc. Engineer Statz also stated that their submitted bid of$122,406.40 and that the County was willing to submit a change form for the work to be completed. Brief discussion was had regarding differences in the bids, addition of items that were outside of the original bid that the contract felt were needed and types of crosswalk markings. Motion by Council Member Fehrenbacher, seconded by Council Member Paar to approve awarding the Colored Concrete Intersections (Centerville Road/Main Street and Progress Road/Main Street Downtown) Area Reconstruction Proiect to low bidder, Arndt Construction in the amount of$122,406.40 as presented. All in favor, Motion carried 2. Resignation Letter From Interim Chief Pat Devaney, Centennial Fire District Administrator Ericson stated that Mr. Devaney presented the District with a formal resignation letter stating that he had accepted another position and that the item would be discussed at an upcoming Fire Steering Committee meeting. Mayor Wilharber recognized the work of Mr. Devaney, thanked him for the job that he and Interim Chief Bruder have been doing and wished him the best with his future career endeavors. 3. Planning & Zoning Commission Recommendation Findings & Decision, Conditional Use Permit Request—6995 —201h Avenue South (Mechanical Air Systems, Inc.) Administrator Ericson stated that the Planning & Zoning Commission held a public hearing regarding the matter, the pending owner was in attendance, the Commission reviewed the presented requirements and made additions, and the City Attorney has reviewed the document. Administrator Ericson stated that Mechanical Air Systems, Inc. would be utilizing an existing building, employing 14 full time employees, commencing operation as of May 1, 2015 and concurred with the requirements placed in them through the Conditional Use Permit. Page 5 of 7 5 City of Centerville Council Meeting Minutes April 8,2015 Motion by Council Member Kim, seconded by Council Member Love to approve the Planning & Zoning Commission's Recommendation Findin! & Decision and Conditional Use Permit for 6995 — 20t Avenue South (Mechanical Air Systems, Inc) as presented All in favor. Motion carried. 3. Amendments to Personnel Policy Mayor Wilharber stated that Staff recommended discussing this item at a work session. Motion by Council Member Love, seconded by Council Member Kin! that Amendment to the Personnel Policv be discuss at work session in the future. All in favor. Motion carried XI. COUNCIL & ADMINISTRATION ANNOUNCEMENTS Mayor Wilharber thanked Cub Scout Pack 432 for their cleanup efforts shown at Hidden Spring Park this past Monday evening. Mayor Wilharber stated that he desires to discuss economic development (EDA/EDC) at the upcoming work session also. Mayor Wilharber stated that the upcoming Fire Steering has been rescheduled from 6:00 p.m. to 7:00 p.m. at Station 2 in Lino Lakes. Mayor Wilharber also stated that the Local Board of Appeal & Equalization will be taking place at 6:15 p.m. on April 22, 2015 and ABDO, Eick & Meyers will also be attending to present the City's annual audit for 2014. 1. Administrator Report a. Anoka County Local Government Officials Meeting, April 29, 2015 — Administrator Ericson stated that if any members of Council were interested in attending this is a good way to meet and network with twenty-one other cities in Anoka County and that he would be in attendance. b. League of MN Cities 2015 Annual Conference, June 24-26, 2015 - Administrator Ericson stated that if any members of Council were interested in attending to let us know. C. Mediation Services — Administrator Ericson stated that the information contained in the packet was a follow up and Attorney Glaser will take care of this issue. d. Metropolitan Council Draft Water Resources Policy Plan—Administrator Ericson stated that the item was present to the Planning and Zoning Commission for their comments. 2. Council & Staff Reports Engineer Statz reported that the 2015 Mill & Overlay Project contracts had been sent to the contractor for signing and staff will be forwarding letters to residents regarding assessments. Page 6 of 7 6 City of Centerville Council Meeting Minutes April 8,2015 Council Member Paar stated that there would be a Fire Steering meeting tomorrow evening. Mayor Wilharber stated that progress is being made along Centerville Road and the closing of the area from Main Street to Dupre Road had assisted in the safety of construction workers in the area. Mayor Wilharber also stated that the Centennial Police Department's presence in the area has assisted in redirection of traffic. Mayor Wilharber reminded drivers that the road is under construction and if you are traveling that area in the evening to be attentive to road conditions. XIII. ADJOURNMENT Motion by Council Member Paar, seconded by Council Member King to Adiourn the Regularly Scheduled Council Meeting of April 8 2015 at 7.30 P.m. All in favor Motion passed. Transcribed by City Staff Member Teresa Bender, City Clerk Page 7 of 7 7 CITY OF CENTERVILLE 04/16/15 9:56 AD Check Detail - April 22, 2015 Page Check Date Check# Vender Name Comments Amount 4/17/2015 000729E MINNESOTA DEPT OF REVENUE 2015- IST QTR SALES TAX Check Nbr 000729 MINNESOTA DEPT OF REVENUE $17' 00 4/22/2015 029398 ALL COVERED INC. PRE-PAID RENEWAL BLOCK $1,100.00 4/22/2015 029398 ALL COVERED INC. PRE-PAID RENEWAL BLOCK $1,100.00 4/22/2015 029398 ALL COVERED INC. PRE-PAID RENEWAL BLOCK $1,100.00 4/22/2015 029398 ALL COVERED INC. PRE-PAID RENEWAL BLOCK $1,100.00 Check Nbr 029398 ALL COVERED INC. $4,400.00 4/22/2015 029399 CENTENNIAL FIRE DISTRICT 2015 IST QTR FIRE SERVICES $25,863.00 4/22/2015 029399 CENTENNIAL FIRE DISTRICT 2015 2ND QTR FIRE SERVICES $25.863.00 Check Nbr 029399 CENTENNIAL FIRE DISTRICT $51,726.00 4/22/2015 029400 FIRST ADVANTAGE ANNUAL ENROLLMENT-DRUG TESTING Check Nbr 029400 FIRST ADVANTAGE $96.00 4/22/2015 029401 INTERNATIONAL UNION OF OPERATI MAY 2015 UNION DUES Check Nbr 029401 INTERNATIONAL UNION OF OPERATI t99.00 4/22/2015 029402 MET. COUNCIL ENV.SERV. (SDS) MAY 2015 WASTE WATER CHARGES Check Nbr 029402 MET. COUNCIL ENV. SERV. (SDS) $16,186.92 4/22/2015 029403 NATIONWIDE RETIREMENT SOLUTION DEF. COMP W/H -PAY PERIOD 8 Check Nbr 029403 NATIONWIDE RETIREMENT SOLUTION $100.28 4/22/2015 029404 PRESS PUBLICATIONS ASSESSMENT AND CLASSIF-AD 4-9 Check Nbr 029404 PRESS PUBLICATIONS $33.76 4/22/2015 029405 STANTEC CONSULTING SERVICES IN STORM-SERV THRU 4-3-15 $134.00 4/22/2015 029405 STANTEC CONSULTING SERVICES IN CSAH 21 RECONSTRUCTION-SERV THRU 4-3-15 $163.90 4/22/2015 029405 STANTEC CONSULTING SERVICES IN SEWER-SERV THRU 4-3-15 $157.00 4/22/2015 029405 STANTEC CONSULTING SERVICES IN WATER-SERV THRU 4-3-15 $2r 4/22/2015 029405 STANTEC CONSULTING SERVICES IN GENERAL-SERV THRU 4-3-15 $! 4/22/2015 029405 STANTEC CONSULTING SERVICES IN 2015 THIN BITUMINOUS OVERLAY-SERV THRU 4-3-15 $76 - Check k Nbr 029405 STANTECCONSULTING E I IN 11,990.53 4/22/2015 029406 XCEL ENERGY 7098 CENTERVILLE RD-SERV THRU 4-7-15 $11.59 4/22/2015 029406 XCEL ENERGY 1737 MAIN ST-SERV THRU 4-7-15 $14.86 4/22/2015 029406 XCEL ENERGY 1745 MAIN ST-SERV THRU 4-7-15 $11.59 4/22/2015 029406 XCEL ENERGY 1682 MAIN ST-SERV THRU 4-7-15 $108.99 4/22/2015 029406 XCEL ENERGY 6970 LAMOTTE DR-SERV THRU 4-7-15 $62.49 4/22/2015 029406 XCEL ENERGY 7285 MAIN ST-SERV THRU 4-7-15 $42.98 4/22/2015 029406 XCEL ENERGY 1600 LAMOTTE DR-SERV THRU 4-7-15 $127.21 4/22/2015 029406 XCEL ENERGY 1889 CENTER ST-SERV THRU 4-7-15 $19.90 4/22/2015 029406 XCEL ENERGY 7300 MILL RD-SERV THRU 4-7-15 $154.54 4/22/2015 029406 XCEL ENERGY 1600 LAMOTTE DR-WARMING HOUSE-SERV THRU 4-7-15 $19.80 4/22/2015 029406 XCEL ENERGY 1875 FOX RUN-PUMP-SERV THRU 4-7-15 $109.78 4/22/2015 029406 XCEL ENERGY STREETS-SERV THRU 4-7-15 $2,169.69 4/22/2015 029406 XCEL ENERGY 1601 LAMOTTE DR-SERV THRU 4-7-15 $25.43 Check Nbr 029406 XCEL ENERGY $2,878.85 TOTAL CHECKS$77,684.34 VOIDED CHECK#29275 REPLACEMENT CHECK FOR VOIDED CHECK IS CHECK#29397 8 CENTENNIAL LAKES POLICE DEPT Check Register-Police GL without invoice numbers Page: 1 Check Issue Dates:4/1/2015-4/10/2015 Apr 10,2015 09:03AM Report Criteria: Report type: Summary GL Check Ck No Description Check Period Issue Date Payee Amount 04/15 04/10/2015 10334 ABRAMS&SCHMIDT LLC LABOR CONSULTING 29.00 04/15 04/10/2015 10335 ANOKA CO TREASURY DEPT. MAY BROADBAND 75.00 04/15 04/10/2015 10336 COVERALL OF THE TWIN CITIES INC APRIL CLEANING SERVICE 796.22 04/15 04/10/2015 10337 DON'S CIRCLE SERVICE, INC VEH MTC&REPAIRS 909.69 04/15 04/10/2015 10338 FRATTALLONES HARDWARE, INC. BLDG SUPPLIES 81.35 04/15 04/10/2015 10339 IMAGE PRINTING&GRAPHICS, INC OFFICER ON PREMISE NOTICES 135.83 04/15 04/10/2015 10340 MCAA SALES TAX 48.00 04/15 04/10/2015 10341 MN SHERIFFS ASSOCIATION TRAINING ADV GUN LAWS BJ 120.00 04/15 04/10/2015 10342 QUILL CORPORATION RETURN CREDIT 416.69 04/15 04/10/2015 10343 CITY OF ROSEVILLE IT SERVICES JPA MIS 10,578.75 04/15 04/10/2015 10344 SHRED-N-GO, INC SHREDDING SERVICE 40.00 04/15 04/10/2015 10345 SUN LIFE FINANCIAL APRIL LIFE/DISABILITY 100.26 04/15 04/10/2015 10346 TELECIDE PRODUCTIONS, INC COMPUTER MTC/SUPPORT 572.18 04/15 04/10/2015 10347 TOP GREEN APRIL GROUNDS MTC 671.98 04/15 04/10/2015 10348 VERIZON WIRELESS CELL PHONES 576.29 Grand Totals: 15,151.24 M= Manual Check,V=Void Check 9 PURCHASE AGREEMENT: VACANT LAND(RESIDENTIAL) This form approved by the Minnesota Association of REALTORS°, which disclaims any liability arising out of use or misuse of this form. ©2014 Minnesota Association of REA RS®,Edina,MN 1. Date ' 2. Page 1 of 3. BUYER(S): Boulder Contracting LLC 4. 5. Buyer's earnest money in the amount of 6 Five Hundred Dollars ($ 500.00 ) shall 7, be delivered to listing broker no later than two (2) Business Days after Final Acceptance Date of this Purchase 8. Agreement. Buyer and Seller agree that listing broker shall deposit any earnest money in the listing broker's trust 9. account within three (3) Business Days of receipt of the earnest money or Final Acceptance Date of this Purchase 10. Agreement,whichever is later. 11. Said earnest money is part payment for the purchase of the property located at 12. Street Address: 7212 Mill Road 13. City of Centerville , County of Anoka State of Minnesota,legally 14. described as PETERSONS OLD HOMESTEAD ADDITION LOT 4 BLR 2 PETERSONS OLD HOMESTEAD 15. ADD(SUBJ TO EASE AS SHOWN ON PLAT) 16. 17. including all fixtures, if any,AND❑INCLUDING❑EXCLUDING the following personal property,if any,which shall 18. be transferred with no additional monetary value, and free and clear of all liens and encumbrances: 19. 20. (collectively the"Property"), 21. all of which Property Seller has this day agreed to sell to Buyer for the sum of($ 45,000.00 ) 22. 23 Forty-Five Thousand Dollars, 24. which Buyer agrees to pay in the following manner: 25. 1. CASH of loo percent(°lo)of the sale price,or more in Buyer's sole discretion,which includes the eamest 26. money;PLUS 27. 2. FINANCING of percent (%) of the sale price, which will be the total amount secured against this 28. Property to fund this purchase. 29. Such financing shall be ❑ a first mortgage ❑ contract for deed or ❑ a first mortgage with subordinate -(Cherie one.}- ------ 30. financing,as described in the attached Addendum 31. ❑Conventional❑FHA❑DVA❑Assumption❑Contract for Deed❑Other- --- (Chea all mat Ap1*J--------- 32. 33. The date of dosing shall be MAY a4 )20 15 34. This Purchase Agreement❑IS a IS NOT subject to an Addendum to Purchase Agreement:Sale of Buyer's Property --(Check 35_ Contingency.(If answer is IS,see attached Addendum.) (If answer is IS NOT,the closing of Buyers property,if any, 36. may still affect Buyer's ability to obtain financing,if financing is applicable.) 37. This Purchase Agreement❑IS M IS NOT subject to cancellation of a previously written purchase agreement dated --(Checar 38_ 20 (If answer is IS, said cancellation shall be obtained 39. no later than '20 MN:PA:VL-1(8114) 10 PURCHASE AGREEMENT: VACANT LAND (RESIDENTIAL) 40. Page 2 Date 41. Property located at 7212 Mill Road Centerville MN 55038 42. If said cancellation is not obtained by said date, this Purchase Agreement is canceled. Buyer and Seller shall 43. immediately sign a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money 44. paid hereunder to be refunded to Buyer.) 45. SPECIAL CONTINGENCIES: This Purchase Agreement is subject to the following contingencies, and if the 46. contingencies checked below are not satisfied or waived, in writing,by Buyer by 20 47. this Purchase Agreement is canceled as of said date- Buyer and Seller shall immediately sign a Cancellation of 48. Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to be refunded to 49. Buyer. 50. (Select appropriate options a-i.) 51. ❑ (a) ❑ BUYER ❑ SELLER shall provide a certificate of survey of the Property, at ❑ BUYER ❑ SELLER -(Check --- 52. expense. 53. ❑ (b) Buyer obtaining approval of city/township of proposed building plans and specifications at 54. ❑BUYER❑SELLER expense. - -(Check one J----- 55. ❑ (c) Buyer obtaining approval of city/township of proposed subdivision development plans at 56. ❑BUYER❑SELLER expense. -(Check one.l------- 57. ❑ (d) Buyer obtaining approval of city/township for rezoning or use permits at❑BUYER[]SELLER expense. ----(Chet*one) 58. ❑ (e) Buyer obtaining,at❑BUYER❑SELLER expense,percolation tests which are acceptable to Buyer. ---(Check one}--_---- 59. ❑ (f) Buyer obtaining, at ❑ BUYER ❑SELLER expense, soil tests which indicate that the Property may be -- (CheoF one i 60. improved without extraordinary building methods or cost. 61. ❑ (g) Buyer obtaining approval of building plans and/or specifications in accordance with any recorded subdivision 62. covenants and approval of the architectural control committee. 63. ❑ (h) Buyer obtaining, at❑ BUYER❑SELLER expense, copies of all covenants, reservations and restrictions -(check one.; 64. affecting the Property. 65. ❑ (i) Other: 66- 67. 68. Seller's expenses for these contingencies(if any)shall not exceed$ 69. DEED/MARKETABLE TITLE: Upon performance by Buyer, Seller shall deliver a (check one): 70. x❑ Warranty Deed, ❑ Personal Representative's Deed, ❑ Contract for Deed, ❑ Trustee's Deed, or 71. ❑Other: Deed joined in by spouse, if any,conveying marketable title,subject to 72. (a) building and zoning laws,ordinances,state and federal regulations; 73. (b) restrictions relating to use or improvement of the Property without effective forfeiture provisions; 74. (c) reservation of any mineral rights by the State of Minnesota; 75. (d) utility and drainage easements which do not interfere with existing improvements; 76. (e) rights of tenants as follows(unless specified, not subject to tenancies): 77• ;and 78. (f) others(must be specified in writing): 79. 80. MN:PA:VL-2(8/14) PURCHASE AGREEMENT: VACANT LAND (RESIDENTIAL) 81. Page 3 Date 4- 82- T"82_ Property located at 72.12 Mill Road Centerville DIN 55038 83. REAL ESTATE TAXES:Seller shall pay on the date of closing all real estate taxes due and payable in all prior years 84. including all penalties and interest. 85. Buyer shall pay xx PRORATED FROM DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate 86. taxes due and payable in the year 20 15 87. Seller shall pay, 0 PRORATED TO DAY OF CLOSING ❑ 12ths OF❑ ALL❑NO real estate taxes 88. due and payable in the year 20 15 If the closing date is changed,the real estate taxes paid shall,if prorated, 89, be adjusted to the new closing date. 90. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter,the payment of which 91. is not otherwise herein provided. No representations are made concerning the amount of subsequent real estate 92. taxes. 93. DEFERRED TAXESISPECIAL ASSESSMENTS: 94. ❑ BUYER SHALL PAY x❑ SELLER SHALL PAY on date of closing any deferred real estate taxes --- (Check one.l-- ---- - 95. (e.g.Green Acres)or special assessments,payment of which is required as a result of the dosing of this sale. 96. ❑ BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING ❑ SELLER SHALL PAY ON --(Check one.}- - -- 97. DATE OF CLOSING all installments of special assessments certified for payment,with the real estate taxes due and 98. payable in the year or dosing. 99. ❑BUYER SHALL ASSUME FKJ SELLER SHALL PAY on date of closing all other special assessments levied as -(Chet* --- - 100. of the date of this Purchase Agreement_ 101. ❑BUYER SHALL ASSUME 0 SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as - (c?Wck on ) -- - -- 102. of the date of this Purchase Agreement for improvements that have been ordered by any assessing authorities. 103. (Seller's provision for payment shall be by payment into escrow of two (2) times the estimated amount of the 104. assessments or less,as required by Buyer's lender.) 105. Buyer shall pay any unpaid special assessments payable in the year following closing and thereafter,the payment of 106. which is not otherwise herein provided. 107. As of the date of this Purchase Agreement, Seller represents that Seller❑HAS❑>t HAS NOT received a notice --(Check one, 108. regarding any new improvement project from any assessing authorities,the costs of which project may be assessed 109. against the Property. Any such notice received by Seller after the date of this Purchase Agreement and before 110. closing shall be provided to Buyer immediately.If such notice is issued after the date of this Purchase Agreement and 111. on or before the date of closing,then the parties may agree in writing,on or before the date of closing,to pay,provide 112. for the payment of or assume the special assessments.In the absence of such agreement,either party may declare 113. this Purchase Agreement canceled by written notice to the other party,or licensee representing or assisting the other 114. party,in which case this Purchase Agreement is canceled.If either party declares this Purchase Agreement canceled, 115. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 116. directing all earnest money paid hereunder to be refunded to Buyer. 117. POSSESSION: Seller shall deliver possession of the Property no later than &_"'*S?q5 after closing. 118. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HEREIN from the Property 119. by possession date. 120. PRORATIONS:All interest;unit owners'association dues;rents;and charges for city water,city sewer,electricity and 121. natural gas shall be prorated between the parties as of date of closing.Buyer shall pay Seller for remaining gallons of 122. fuel oil or liquid petroleum gas on the day of dosing,at the rate of the last fill by Seller. MN:PA:VL-3(8/14) J'afto 12 PURCHASE AGREEMENT: VACANT LAND (RESIDIAL) 123. Page 4 Date 4-117 124. Property located at 7212 Mill Road Centerville NN 55038 125. TITLE AND EXAMINATION:Within a reasonable time period after Final Acceptance Date of this Purchase Agreement, 126. Seller shall provide one of the following title evidence options,at Seller's selection,which shall include proper searches 127. covering bankruptcies, state and federal judgments and liens, and levied and pending special assessments to Buyer 128. or Buyer's designated title service provider: 129. (1) A commitment for an owner's policy of title insurance on a current ALTA form issued by an Insurer licensed to write 130. title insurance in Minnesota as selected by Buyer.Seller shall be responsible for the title search and exam costs 131. related to the commitment.Buyer shall be responsible for all additional costs related to the issuance of the title 132. insurance policy(ies), including but not limited to the premium(s), Buyer's name search and plat drawing, if any. 133. Seller shall surrender a copy of any owner's title insurance policy and Abstract of Title, if in Seller's possession or 134. control,for this Property to Buyer or Buyer's designated title service provider. 135. (2) An Abstract of Title certified to date if Abstract Property or a Registered Property Abstract(RPA)certified to date 136. if Registered(Torrens)Property.Seller shall pay for the abstracting or RPA costs and surrender any abstract for 137, this Property in Seller's possession or control to Buyer or Buyer's designated title service provider.If Property is 138. Abstract and Seller does not have an Abstract of Title,Option(1)will automatically apply. 139. Seller shall use Seller's best efforts to provide marketable title by the date of dosing.In the event that Seller has not 140, provided marketable title by the date of dosing,Seller shall have an additional 30 days to make title marketable or,in 141. the alternative, Buyer may waive title defects by written notice to Seller. In addition to the 30-day extension, Buyer 142. and Seller may by mutual agreement further extend the closing date.Lacking such extension,either party may declare 143. this Purchase Agreement canceled by written notice to the other party,or licensee representing or assisting the other 144. party,in which case this Purchase Agreement is canceled.If either party declares this Purchase Agreement canceled, 145. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 146. directing all earnest money paid hereunder to be refunded to Buyer. 147. SUBDIVISION OF LAND, BOUNDARIES,AND ACCESS: If this sale constitutes or requires a subdivision of land 148. owned by Seller, Seller shall pay all subdivision expenses and obtain all necessary governmental approvals.This 149. provision deals with the necessity of subdividing land to complete the sale of the Property described herein in contrast 150. to the subdivision provision of lines 55-56 which deals with the future development plans of Buyer.Seller warrants the 151. legal description of the real Property to be conveyed has been or shall be approved for recording as of the date of 152. closing.Seller warrants that there is a right of access to the Property from a public right of way. 153. MECHANIC'S LIENS: Seller warrants that prior to the closing, payment in full will have been made for all labor, 154. materials,machinery,fixtures or tools furnished within the 120 days immediately preceding the dosing_ 155. NOTICES:Seller warrants that Seller has not received any notice from any governmental authority as to condemnation 156. proceedings or violation of any law, ordinance or regulation.if the Property is subject to restrictive covenants,Seller 157. warrants that Seller has not received any notice from any person or authority as to a breach of the covenants.Any 158. such notices received by Seller shall be provided to Buyer immediately. 159. DIMENSIONS:Buyer acknowiedges any dimensions,square footage or acreage of land or improvements provided 160. by Seller, third parry, or broker representing or assisting Seller are approximate. Buyer shall verity the accuracy of 161. information to Buyer's satisfaction,if material,at Buyer's sole cost and expense. 162. ACCESS AGREEMENT: Seller agrees to allow Buyer reasonable access to the Property for performance of any 163. surveys, inspections or tests or for water, sewer, gas or electrical service hookup as agreed to herein. Buyer shall 164. restore the premises to the same condition it was in prior to the surveys,inspections or tests and pay for any restoration 165. costs relative thereto. 166. RISK OF LOSS: If there is any loss or damage to the Property between the date hereof and the date of dosing for 167. any reason,including fire,vandalism,flood,earthquake or act of God,the risk of loss shall be on Seller.If the Property 168. is destroyed or substantially damaged before the closing date, this Purchase Agreement is canceled, at Buyer's 169. option,by written notice to Seller or licensee representing or assisting Seller.If Buyer cancels this Purchase Agreement, 170. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 171. directing all earnest money paid hereunder to be refunded to Buyer. 172. TIME OF ESSENCE:Time is of the essence in this Purchase Agreement. 173. CALCULATION OF DAYS:Any calculation of days begins on the first day (calendar or Business Days as specified) 174. following the occurrence of the event specified and includes subsequent days(calendar or Business Days as specified) 175. ending at 11:59 P.M.on the last day. MN:PA:VL-4(8114) A 13 PURCHASE AGREEMENT. VACANT LAND(RESIDENTIAL) 176. Page 5 Date 177. Property located at 7212 Kill Road Centerville lei 55038 178. BUSINESS DAYS:"Business Days"are days which are not Saturdays, Sundays or state or federal holidays unless 179. stated elsewhere by the parties in writing. 180. RELEASE OF EARNEST MONEY:Buyer and Seller agree that the listing broker shall release earnest money from 181. the listing broker's trust account:l)at or upon the successful closing of the Property;2)pursuant to written agreement 182. between the parties, which may be reflected in a Cancellation of Purchase Agreement executed by both Buyer and 183. Seller;3)upon receipt of an affidavit of a cancellation under MN Statute 559.217;or 4)upon receipt of a court order. 184. DEFAULT: If Buyer defaults in any of the agreements herein, Seller may cancel this Purchase Agreement,and any 185. payments made hereunder, including earnest money, shall be retained by Seller as liquidated damages and Buyer 186. and Seller shall affirm the same by a written cancellation agreement. 187. If Buyer defaults in any of the agreements hereunder, Seller may terminate this Purchase Agreement under the 188. provisions of either MN Statute 559.21 or MN Statute 559.217,whichever is applicable.If either Buyer or Seller defaults 189. in any of the agreements hereunder or there exists an unfulfilled condition after the date specified for fulfillment, 190. either party may cancel this Purchase Agreement under MN Statute 559.217,Subd.3.Whenever it is provided herein 191. that this Purchase Agreement is canceled, said language shall be deemed a provision authorizing a Declaratory 192. Cancellation under MN Statute 559.217,Subd.4. 193. If this Purchase Agreement is not canceled or terminated as provided hereunder, Buyer or Seller may seek actual 194. damages for breach of this Purchase Agreement or specific performance of this Purchase Agreement; and, as to 195. specific performance,such action must be commenced within six(6) months after such right of action arises. 196. NOTICE REGARDING AIRPORT ZONING REGULATIONS:The Property may be in or near an airport safety zone 197. with zoning regulations adopted by the governing body that may affect the Property. Such zoning regulations are 198. filed with the county recorder in each county where the zoned area is located,If you would like to determine if such 199. zoning regulations affect the Property,you should contact the county recorder where the zoned area is located. 200. NOTICE REGARDING PREDATORY OFFENDER INFORMATION:Information regarding the predatory offender 201. registry and persons registered with the predatory offender registry under MN Statute 243.166 may be 202_ obtained by contacting the local law enforcement offices in the community where the Property is located 203. or the Minnesota Department of Corrections at(651)361-7200,or from the Department of Corrections web 204. site at www.corr.state.mmus. 205. SPECIAL DISCLOSURES: Seller discloses, to the best of Seller's knowledge, that the Property described in this 206. Purchase Agreement consists of approximately 16000 []ACRES g SQUARE FEET and is currently zoned {Check one} 207. 208. Seller discloses, to the best of Seller's knowledge, that the PropertyF]IS Q IS NOT in a designated flood plain 209. area. --.(cr+er k O1�")--- 210. Seller discloses, to the best of Seller's knowledge, that the Property ❑ DOES Q DOES NOT currently receive 211. preferential tax treatment(e.g.Green Acres). 212. BUYER HAS THE RIGHT TO A WALK-THROUGH REVIEW OF THE PROPERTY PRIOR TO CLOSING TO 213. ESTABLISH THAT THE PROPERTY IS IN SUBSTANTIALLY THE SAME CONDITION AS OF THE DATE OF THIS 214. PURCHASE AGREEMENT. 215. BUYER HAS RECEIVED A (check any that applyr ❑ DISCLOSURE STATEMENT.- VACANT LAND OR A 216. ❑DISCLOSURE STATEMENT.-SELLER'S DISCLOSURE ALTERNATIVES FORM. 217. DESCRIPTION OF PROPERTY CONDITION: See Disclosure Statement: Vacant Land or Disclosure Statement: 218. Seller's Disclosure Alternatives for description of disclosure responsibilities and limitations,if any. 219. BUYER HAS RECEIVED THE INSPECTION REPORTS,IF REQUIRED BY MUNICIPALITY. 220. BUYER IS NOT RELYING ON ANY ORAL REPRESENTATIONS REGARDING THE CONDITION OFTHE PROPERTY. MN:PA:VL-5(8/14) X11 14 PURCHASE AGREEMENT: VACANT LAND (RESIDENTIAL) 221. Page 6 Date 41-1 -X" 222. Property located at 7212 Kill Road Centerville lir 55038 223 ENVIRONMENTAL CONCERNS: To the best of the Seller's knowledge there are no hazardous substances or 224. underground storage tanks,except where herein noted. 225. 226. 227. 228, UTILITIES: TO THE BEST OF SELLER'S KNOWLEDGE, THE FOLLOWING PRESENTLY EXIST WITHIN THE 229. PROPERTY: 230. Connection to public water? DYes ❑No 231. Connection to public sewer? x❑Yes ❑No 232. Connection to private water system off Property? ❑Yes 0 No 233. Connection to electric utility? 0 Yes ❑No 234. Connection to natural gas? ❑K Yes ❑No 235. PLEASE NOTE:Buyer may incur additional charges improving the Property,including, but not limited to,hookup and/ 236. or access charges;municipal charges;costs for sewer access,stubbing access,water access,park dedication, road 237. access,curb cuts, utility connection and connecting fees;and tree planting charges. 238. (Check appropriate boxes.) 239. SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTED TO: 240. CITY SEWER AYES❑NO / CITY WATER DYES❑NO 241. SUBSURFACE SEWAGE TREATMENT SYSTEM 242. SELLER ❑ DOES Q DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT SYSTEM ON OR ----(Check one)---- - 243. SERVING THE PROPERTY. (If answer is DOES, and the system does not require a state permit, see Disclosure 244. Statement.Subsurface Sewage Treatment System.) 245. PRIVATE WELL 246. SELLER ❑ DOES Q DOES NOT KNOW OF A WELL ON OR SERVING THE PROPERTY. -----(Chedcone.p -- 247. (If answer is DOES and well is located on the Property,see Disclosure Statement:Well.) 248. THIS PURCHASE AGREEMENT❑IS FKJ IS NOT SUBJECT TO AN ADDENDUM TO PURCHASE AGREEMENT.- -(Check-)---- 249. SUBSURFACE SEWAGE TREATMENT SYSTEM AND WELL INSPECTION CONTINGENCY. 250. (If answer is IS,see attached Addendum.) 251. IF A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER HAS 252. RECEIVED A DISCLOSURE STATEMENT: WELL AND/OR A DISCLOSURE STATEMENT. SUBSURFACE 1 253. SEWAGE TREATMENT SYSTEM. I 254. NOTICE 255. Louis Susxi is❑X Seller's Agent❑Buyer's Agent❑Dual Agent❑Facilitator. (licensee) -(Check - 256 Gaughan Companies (Real Estate Comperry Nems) 257. James Cormier is❑Seller's Agent❑X Buyer's Agent❑Dual Agent❑Facilitator. (tScersee) - 258. Building Sites, Inc. (Real Estate Compmry Name) 259. THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS. MN:PAVL-6(8/14) vaot 15 PURCHASE AGREEMENT: VACANT LAND (RESIDENTIAL) 260. Page 7 Date 4-1 261. Property located at 7212 Mill Road Centerville MN 55038 262. DUAL AGENCY REPRESENTATION 263. PLEASE CHECK ONE OF THE FOLLOWING SELECTIONS: 264. Q Dual Agency representation DOES NOT apply in this transaction.Do not complete lines 265-281. 265. ❑ Dual Agency representation DOES apply in this transaction. Complete the disclosure in lines 266-281. 266. Broker represents both the Seller(s) and the Buyer(s) of the Property involved in this transaction, which creates a 267. dual agency.This means that Broker and its salespersons owe fiduciary duties to both Seller(s)and Buyer(s).Because 268. the parties may have conflicting interests, Broker and its salespersons are prohibited from advocating exclusively for 269. either party.Broker cannot act as a dual agent in this transaction without the consent of both Seller(s) and Buyer(s). 270. Seller(s)and Buyer(s)acknowledge that 271. (1) confidential information communicated to Broker which regards price,terms or motivation to buy or sell will 272. remain confidential unless Seller(s)or Buyer(s) instructs Broker in writing to disclose this information.Other 273. information will be shared; 274. (2) Broker and its salespersons will not represent the interest of either parry to the detriment of the other;and 275. (3) within the limits of dual agency, Broker and its salespersons will work diligently to facilitate the mechanics of 276. the sale. 277. With the knowledge and understanding of the explanation above,Seller(s)and Buyer(s)authorize and instruct Broker 278. and its salesperson to act as dual agents in this transaction. 279_ Seller Buyer 280. Seller Buyer 281. Date Date 282. CLOSING COSTS:Buyer or Seller may be required to pay certain closing costs, which may effectively increase the 283. cash outlay at closing or reduce the proceeds from the sale. 284. ENTIRE AGREEMENT. This Purchase Agreement and any addenda or amendments signed by the parties shall 285. constitute the entire agreement between Buyer and Seller.Any other written or oral communication between Buyer 286_ and Seller,including,but not limited to,e-mails,text messages,or other electronic communications are not part of this 287. Purchase Agreement.This Purchase Agreement can be modified or canceled only in writing signed by Buyer and 288. Seller or by operation of law. All monetary sums are deemed to be United States currency for purposes of this 289. Purchsae Agreement. 290. ELECTRONIC SIGNATURES:The parties agree the electronic signature of any party on any document related to this 291. transaction constitute valid,binding signatures. 292. FINAL ACCEPTANCE:To be binding,this Purchase Agreement must be fully executed by both parties and a copy 293. must be delivered. 294. SURVIVAL: All warranties specified in this Purchase Agreement shall survive the delivery of the deed or contract 295. for deed. 296. OTHER: The Buyer and Seller agree to use Land Title, Inc. and that the 297• closing shall take place at Land Title,lnc. , Coon Rapids, MPT 298. 299 Seller warrants that the lot is buildable without extra ordinary costs 300. 301. 302. 303. MN:PA:VL-7(8114) 16 PURCHASE AGREEMENT: VACANT LAN/(D (RESIDE IAL) 304. Page 8 Date 305. Property mated at 7212 Kill Road Centerville MN 55038 306. ADDENDA AND PAGE NUMBERING:Attached addenda are a part of this Purchase Agreement. 307. Enter total number of pages of this Purchase Agreement,including addenda,on line two(2)of page one(1). 308. NOTE:Disclosures and optional Arbitration Agreement are not part of this Purchase Agreement and should 309. not be part of the page numbering. 310. I,the owner of the Properly, accept this Purchase I agree to purchase the Property for the price and on 311. Agreement and authorize the listing broker to withdraw the terms and conditions set forth above. 312. said Property from the market, unless instructed otherwise I have reviewed all pages of this Purchase 313. in writing. Agreement. 314, 1 have reviewed all pages of this Purchase Agreement. 315. ❑ If checked,this Agreement is subject to attached 316. Addendum to Purchase Agreement:Counteroffer. r 317. X X Y (Setter's Signature) (Date) (Buyer's Signa (Date) 318_ X X sould r Contracting LLC (Sellers Printed Flame) (Buyer's Printed Nacre) 319. X X (Marital Status) (Martel status) 320. X X (Seller's Signature) (Date) (Buyer's Signature) (Date) 321. X X (Sellers Printed Name) Buyers Printed Name) 322. X X (Marital swus) (Marital Status) 323. FINAL ACCEPTANCE DATE: The Final Acceptance Date 324_ is the date on which the fully executed Purchase Agreement is delivered. 325_ THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S)AND SELLER(S). 326. IF YOU DESIRE LEGAL OR TAX ADVICE,CONSULT AN APPROPRIATE PROFESSIONAL 327. 1 ACKNOWLEDGE THAT I HAVE RECEIVED AND HAVE HAD THE OPPORTUNITY TO REVIEW THE 328. DISCLOSURE STATEMENT.ARBITRATION DISCLOSUREANDRESIDEAMALREAL PROPERTNARBrMTION 329. AGREEMENT,WHICH IS AN OPTIONAL,VOLUNTARY AGREEMENT AND IS NOT PART OF THIS PURCHASE 330. AGREEMENT. 331. SELLER(S) BUYER(S). BOu141e trading LLC 332. SELLER(S) BUYER(S) MN:PA:VL-8(8114) 17 EARNEST MONEY RECEIPT This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. 0 2014 Minnesota Association of REALTORS[',Edina,MN 1. Date 04/14/15 2. Time 3. Buyer's licensee representing or assisting Buyer represents that he/she has in his/her possession earnest money in 4. the amount of $ 500.00 check number 3586 5. related to the Purchase Agreement dated April 14th ,20 15 for the property located at 6 7212 Mill Road (street) 7 Centerville 55038 (chY) 8. Buyer's licensee representing or assisting Buyer will deliver the earnest money pursuant to the above-referenced 9. Purchase Agreement,but to be returned to Buyer if Purchase Agreement is not accepted by Seller. 10. Buyer and Licensee Representing or Assisting Buyer Information: 11. (Buyers N affx)(s)l souldar Coatractina Lu Jaasaa 12. (Buyer's Licensee Representing or Assisting Buyer) James Cormier MN:EMR(8114) ,��111IK G' 18 Ug • fl .t � � r V .w..„, P_; s Cr.<MI Man s; n U.�S1 Me.:St ®td FOR SALE - RESIDENTIAL LAND LIST PRICE 7212 Mill Road, Centerville, MN 55038 $50,000.00 PROPERTY FEATURES AVAILABLE AREA • City Owned Lot .37 Acres (16,117 SF) • Zoned Residential PROPERTY ID • Ready for New Construction Beautiful Wooded Lot in Quiet, Newel Neighborhood 14.31.22.43.0013 • Backs Up to Pond CONTACT • Walk to Centerville Elementary School and Down- Lou Suski town Centerville 612-238-4402 • Two Blocks North of Main Street • Minutes From Interstate 35 E John Chirhart Is Located 20 Minutes North of the Twin Cities 612-238-4403 O Copyright 2011 Gaughan Companies,All Rights Reserved Gaughan Companies nor their respective officers,directors,employees and agents make any representation or warranties of any nature as to the accuracy or the completeness of this property fact sheet If you hove interest to the subject property,it should be independently verified 2 GAUGHANi ►�I 19 2015 CITY FOCUS GOALS DESCRIPTION OF GOALS TARGET DATE FOR COMPLETION 1 Economic Development- Business Retention & Growth a. Maintain active relationships with all businesses in Centerville allowing for open input of economic conditions, available City resources, future plans (i.e., expansion/relocation) August 30, 2015 b. Collaberate with Quad Area Chamber of Commerce, neighboring communities, Anoka County, etc. to assist in increased knowledge of projects affecting city July 30, 2015 c. Maintain database of stock of commercial/industrial properties (MNPro, MetroMSP, DEED & Greater MSP) for potential suitors and market with real estate brokers June 30, 2015 d. Utilize financial advisor, bond counsel, DEED, Met. Council and all economic development tools (TIF, tax abatement, grants,) to attract new business to Centerville October 1, 2015 e. Review use of EDA to promote Centerville's attributes (lakes, small town feel,transportation/easy access, internet/broadband availability, etc.) September 30, 2015 f. Review and update downtown redevelopment plan December 1, 2015 2 Infrastructure a. CSAH21 - Work w/County and residents to complete successful reconstruction(financial and progress updates) August 1, 2015 1b. Pavement management - continued funding and review September 30, 2015 c. Ensure existing systems (water, sewer, storm sewer, snow plowing policy/route) are sustained through fees & CIP November 1, 2015 d. Continue grant submissions for municipal connections June 1, 2015 e. Storm Water Management policies and procedures June 30, 2015 3 Public Safety a. Centennial Fire District - work w/member cities December 1, 2015 b. CLPD Police Commission- work w/member cities December 1, 2015 4 Comprehensive Plan Implementation December 30, 2015 5 Water Conservation a. Storm Water Irrigation - monitor November 1, 2015 b. Water rate conservation - review fee structure August 30, 2015 c. Education, encouragement, incentives December 1, 2015 Id. Collaboration on water supply-NE Water Summit& MN DNR December 30, 2015 6 Parks & Recreation a. Identify and complete missing trail links July 30, 2015 b. Hockey Rink Fencing June 1, 2015 1c. Identify funding sources like grants & donations November 1, 2015 d. Council Budgeted $15,000 in 2015 COMPLETED e. Park Dedication Fees - ReviewFee Schedule/Align w/Code September 30, 2015 20 2015 ONGOING PRIORITIES DESCRIPTION OF PRIORITY TARGET DATE FOR COMPLETION 1 Maintain Quality Staff a. Continue training and education b. Establish internship program c. Adequate resources and equip. - including technology 2 Commission/Committee Collaboration a. Maintain communications and interaction between Council Members, Staff and Commission/Committee Members b. Training - LMCIT, LMC &APA c. Recruit qualified citizens to serve and lead Commissions/Committees 3 Continue to Build Diverse and Stable Tax Base a. Pavement Management Program b. Collaberate with neighboring communities including Hugo to continue sharing services 4 Community Outreach a. Re-establish newsletter, revisit website, establish Facebook presence, Twitter, establish cable t.v. show, Lions, establish Yellow Ribbon network, recreational & civic organizations b. Build relationship with civic organizations, (i.e. Lions, Church) Hugo Business Association) c. Build &maintain relationships with local businesses d. City bus tour w/Council, Commissions and Staff 5 Maintain Legislative Relationships a. League of Minnesota Cities/Metro Cities b. County Commissioner, State Senator, State Representative& U.S. Congress &U.S. Senate 6 Build & Maintain Regional Partnerships a. I-35W/E Coalition, Northeast Metro Water Summit, St. Paul Regional Water, Metropolitan Council, School District, RCWD, State & Fed. Agencies 21 �t }J tr 4 r sir 'S •_ . C—"SASSY' Vi x- 4 Incredible Spaces. Outstanding Opportunities. C I T Y &` O F 11NOEAK E Community Snapshot Named... $255,178 "Among Best U.S. Cities to Live" 62 15 Median Home Value Miles ofTrairs" Miles of Canoe Trails 1 $106,181 by:Money Magazine Median Household Income 1 i 1 ,�M ;M ; 20,833 fifift 5 550 21 city 6,382 37 years Households i Acres of Lino Lakes ���'��'� Parks ...�.. Regional Parkland Population �� �� Median Age Source ESRI Business Analyst Online: Rice Creek Chain of Lakes Regional Park + Centennial School District 8 outof 10 Lino Lakes Top 10 Employers p Company Name #of Employees White Bear Lake School District 8 out State of Minnesota Corrections 447 Source Zillow Real Estate Network Centennial School District 391 Target Corp 200 Education Achievement- City of Lino Lakes Curtis 1000 162 Molin Concrete 130 High school graduate Rehbein Transit 130 Some College Custom Remodelers 125 Kohls 123 iogf Bachelor's degree City of Lino Lakes 86 11% Associates degree Hampton Inn&Suites 80 6% Post graduate degree Source: City of Lino Lakes Source American Community Survey(2072' Population Projections for Anoka County proximity to Metro and Drive Times Total Population Percent Change ANCN 2010 2020 2030 2040 2010.2020 2010.2040 l�••� Y .••P°,, 330,844 360,882 384,397 398,229 8.3% 16.9% ��� ti Source:Minnesota State Demographic Center-March 2014 .r.a•• +. * `� , t;;%� '''� I' How to Get Herev. b"stat&NWi . Uno Lakes is krcaftd been i XW and 35E providing eats vetkulle►=wsWity to both K naMollis and St.TAXA metropolitan o"Ws q•fi 4 Air:Located 28 rr&s f%ordw"of tfre MinneapolW i.PAW Mcerr ional Ailnart ad 9 r6les faun the F� so / Af I)camty flepioW Airport. Drwl _ '• _ r - R 0 •PI•N PLYYOtf:TJl ; GOL _ LY•9 p ,Ra _ # 6 P r .- YIN O A r Imn p q p�,,•./ iiQ Q 26,720 212.2 . � • CNANNM33 X11 R Ei RIVER • EDEN PRA7AIE" �•d TIA _ yu�.�.����..•••• �p�y q�/� �.,p.,� q�� - r -0T7AGE GROYE i1 lAvyWs�Age '7R7•I7 Age --=-_v--_+fm oC, e Y r EAGAN r 23 Incredible Spaces. Outstanding Opportunities. ;� CITY OF Development Areas of Interest RINOBKKES Z3 ® Woods Edge Development roml 20 97 Acres Woods Edge,conveniently located at the interchange of Interstate 35W and County Highway 23,lies in the heart of Lino Lakes'growing town center. The development currently includes City Hall,bank,medical clinic,apartments,senior living,and one of the most successful YMCA's K , i in the metro area. Pad sites and built leasable space for restaurants, retail and service uses are all available. Higher density housing is an integral part of the design plan,and the City welcomes townhome, - Neighborhood Block senior and apartment developers. Approximately 20 acres,with public TowgSduare Block ll 16 Acres infrastructure in place,are available for development. Urban Block 2 07 774AUes r� �am.eMnEaroKrm�. rMCA J. j,I' xr - "R.` t" —_ •-. —� ill A �1 ' _. A-� - A—, } a' JAZ -"- ''-,' _ �►u•-i..c`cFn.;` � '� Industrial '� Mixed Use ( Park Space Conwmtcial= Institutional 35E Corridor Proposed Land Use County Road J &Hodgso One of the largest undeveloped This gateway into southern Lino "K ,' ' , interchanges in the metro area is drawing :r ~i Lakes shares its border with the the attention of major development groups City of Shoreview and nearby "x. �t' "K and big box retailers.This 1-35E Corridor, North Oaks. Prime for both green s ,°i .,,s , . ' just 25 minutes from downtown St.Paul,is development and redevelopment,it '' ^' a virtual untapped market in the northeast �'« ,•, A metro area that stretches all the way to promises exciting opportunities for developers of both residential and r c " Wisconsin.This corridor is projected to commercial centers. A master plan '; ;. '- ` : experience significant growth over the �. for the area is completed and the _' *''- ,,.•'> next 20 years. With a newly constructed City is eager to work in partnership — interchange,commercial opportunities with innovative developers to turn abound and hundreds of acres are available this into a neighborhood jewel. for corporate campus environments. 24 ,�_ incredible Spaces. Outstanding Opportunities. C I T Y O F RN KiE Nil:,.:V fl,' iu116 ,- 1 CC i Local Assistance Programs 4 - Tax Increment Financing (TIF) t. ) 1 t -' 6 F t Assistance for land write-down and or site improvements for qualified businesses. Assistance may include: • Acquisition of land • Preparation of sites for development • Construction or reconstruction of public improvements • Removal of polluted lands as needed • Tax increment financing,tax abatement,or other financial tools available to the city Helpful Links: Economic Development in Lino Lakes- Regional Assistance Programs http://www.ci.lino-lakes.mn.us/ Minnesota Investment Fund Greater MSP- tow interest loans to industrial,manufacturing and http://www.youtube.com/watch?feature=player_em bedded&v=J- technology businesses. DH5i16FFiM Small Business Development Loan Program Quad Area Chamber of Commerce- This loan is through the Minnesolo Agricultural and Economic Development Board who issues industrial http://www.quadchamber.org/ development bands. Twin Cities Gateway - Convention and Tourism Bureau Small Business Administration (SBA) Assistance with SBA loons. www.tcgateway.com Lino Lakes Welcomes YOU! The City of Lino Lakes' Community Development Department provides comprehensive services to prospective and existing businesses by assisting with site and building information, financial assistance, and guidance through the regulatory and development process. a f •�"'� ] how#, �7�!!�E -P•✓+t_-p. aux.. _., ,,. <. g i'rtiGl!t1 o ���'�� •�+`' � ,. 7 - ,. _ t cru• -�:• .� ., .._ ._ ��: :�:-, � , F 25 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF CENTERVILLE RESOLUTION#15-0 A RESOLUTION AUTHORIZING WARRANTY DEED CONVEYING PARCEL(S) 1, 2, 3, 12A, 12B, 12C AND A PERMANENT EASEMENT FOR DRAINAGE, UTILITY, SLOPING, SNOW STORAGE AND STORM SEWER PURPOSES OVER, UNDER AND ACROSS PARCEL(S) 12PE-1, 12PE-2 AND 12PE-3,ANOKA COUNTY HIGHWAY RIGHT-OF-WAY, PLAT NO 89, ACCORDING TO THE MAP OR PLAT THEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE ANOKA COUNTY RECORDER AND REGISTRAR OF TITLES WHEREAS, the City of Centerville on April 22, 2015, met, discussed and reviewed the presented Warranty and Quit Claim Deed(s) attached hereto and made a part of this document, and WHEREAS, Staff and Legal Counsel have both reviewed said documents, and NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF CENTERVILLE, ANOKA COUNTY, MINNESOTA: 1. That the Mayor and City Clerk are authorized to sign said documents and forward them along with this approved resolution to the Anoka County Recorder's Office for recording Adopted by the City Council this 22nd day of April. Tom Wilharber, Mayor Attest: Teresa Bender, City Clerk 26 WARRANTY DEED Corporati6n or Partnership to Corporation or Partnership r No delinquent taxes and transfer entered;Certificate of Real Estate Value( )filed( )not required JL Certificate of Real Estate Value No. 20— County Auditor /y t �(N by Deputy 5 STATE DEED TAX DUE HEREON: $ DATE:�C\6 �s� \--.;L 20 FOR VALUABLE CONSIDERATION,City of Centerville,a municipal corporationunder the laws or me 01ale Ui Minnesota,Grantor, hereby conveys and warrants to the County of Anoka,a political subdivision of the State of Minnesota,Grantee,real property in Anoka County,Minnesota,described as follows: (See Attached for Legal Description) Grantor,for itself,its successors and assigns,do hereby grant and convey to the County of Anoka all grasses,shrubs,trees and natural growth now existing on said lands or that may be hereafter planted or grown thereon,and the right to remove and use all earth and other materials lying within the parcel of land hereby conveyed. The said Grantor does hereby release the County of Anoka from any claims for damages to the fair market value of the above- described area covered by this easement and for its use,or any claims for damages to the fair market value of the remaining property of Grantor caused by the use of the easement,including grading and removal of materials from said easement area for highway purposes. Notwithstanding the foregoing,Grantor does not release any claims Grantor may have as a result of the negligence of the Grantee,its agents or contractors,in conducting any of the above activities. Grantor(s)warrants that it has no knowledge of any hazardous substance located in or on the land and that the Grantor(s)had no knowledge of any hazardous substance located in or on the land at the time right,4tle or interest in the land was first acquired by the Grantor(s). Grantors)certifies that the Grantor(s)does not know of any wells on the described real property. (if more space is needed,continue on back) together with all hereditaments and appurtenances belonging thereto,subject to the following exceptions: City of Centerville B -vim Its Its Affix Affix Deed Tax Stamp Here STATE OF MINNESOTA SS. COUNTY OF AA/0W The foregoing instrument was acknowledged before me this*- day of 20 L5 by oYh kl, 16,1-hJ1 and �TPrGsq v` the YY\8!:,-pY and �4-,1 0X V k of City of Centerville, a municipal corporation under the laws of Minnesota,on behalf of the municipal corporation. N0 J ;;�;;� xws srv�NEr ,,���Camlisslm 6mies.larL 31,20� GRANTEE STATEMENT AND SEND TAX STATEMENTS TO. THIS INSTRUMENT DRAFTED BY: COUNTY OF ANOKA THE ANOKA COUNTY HIGHWAY DEPT. C/O HIGHWAY DEPARTMENT 1440 BUNKER LAKE BLVD 1440 BUNKER LAKE BLVD. ANDOVER,MN 55304 ANDOVER,MN 55304 THE TOTAL 00111118111MUT11011111 FM TM9 Project No 621-010 Parcel(s)-1,2,3,12 TRAMPER OF PROPOM f8 SM OR LMS FOR THE BENEFIT OF 27 THE COUNTY OF ANOKA Parcel(s)1,2,3, 12A, 12B, 12C and a permanent easement for drainage, utility, sloping,snow storage and storm sewer purposes over, under,and across Parcel(s) 12PE-1, 12PE-2 and 12PE-3,Anoka County Highway Right-of-Way Plat No.89, according to the map or plat thereof on file and of record in the office of the Anoka County Recorder and Registrar of Titles. f 28 QUFT CLAIM DEED Corporation or Partnership to Corporation or Partnership No delinquent taxes and transfer entered;Certificate of Real Estate Value( )filed( )not required Certificate of Real Estate Value No. 20 County Auditor by Deputy STATE DEED TAX DUE HEREON: $ DATE: C`(\ 20 (reserved for recording data) FOR VALUABLE CONSIDERATION,City of Centerville a municipal corporation under the laws of the State of Minnesota, Grantor, hereby conveys and quitclaims to the County of Anoka,a political subdivision of the State of Minnesota, Grantee, real property In Anoka County, Minnesota,described as follows: A temporary easement for construction purposes over Parcel 1TE,12TE-1 &12TE-2,Anoka County Highway Right-of-Way Plat No.89,according to the map or plat thereof on file and of record in the office of the Anoka County Recorder and Registrar of Titles. Said temporary easement to expire on December 31,2015. Grantor(s)warrants that it bas no knowledge of any hazardous substance located in or on the land and that the Grantors)had no knowledge of any hazardous substance located in or on the land at the time right,title or interest in the land was fust acquved by the Grantor(s). Grantors)certifies that the Grantor(s)does not know of any wells on the described real property- r (if more space is needed, continue on back) together with all hereditaments and appurtenances belonging thereto,subject to the following exceptions: City of Centerville Its a✓ Its 2' e,—J Affix Deed Tax Stamp Here STATE OF MINNESOTA ss. COUNTY OF f>A61I fq The for�ng instrument s acknowledged before me this J� day of 20 j by ` t9w-,, lam, and rT L 5.4 � the IMS and If,11L of City of Centerville,a municipal corporation under the laws of Minnesota,on behalf of the municipal corporation. NOT ' Icizis SWEENEY HO7AM PU&JC-STA Y W Crrlal isdM f>Qtm ialL 31,20TQ GRANTEE STATEMENT AND SEND TAX STATEMENTS TO: THIS INSTRUMENT DRAFTED BY* COUNTY OF ANOKA THE ANOKA COUNTY HIGHWAY DEPT. CIO HIGHWAY DEPARTMENT 1440 BUNKER LAKE BLVD. 1440 BUNKER LAKE BLVD. ANDOVER,MN 55304 ANDOVER,MN 55304 Project No. 621-010 Parcel(s)-1TE,12TE FOR THE BENEFIT OF THE COUNTY OF ANOKA 29 r uff AAM,4 COUNTY ff10jW,4.Y _.IGffT-OF#rAY PLAT NO. 89 County Highway Project No S,P 002-621-010 \ all3 l�uRJILLE CIRCLE f�.j i csl I I a J `' I �•1� F� — rFR \\ 1Ni l `x'1/3 eT :. s:::;s,lS :3. 3;. R -= J ¢ c ;is` ,xs Sy3 IB OC ` \J BL-7k f U 4 y " I a Ej e r�iBLOM ,— r 1 b .i. r . .:I $ _ — --= _ ----- '— C IfRVILIF ROAD (C SAH NC 1) sn< ;G� �_� aS�,•n:__.'——— ' ,um n 4 a tr�s� :L."R 4 " i II 11 i` ` .~-- ..�'.'iMm II ao""�i ��a:. 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Jett TlatYl zn i w-6 s'w ms i w�r+�Ju war �w- `r 4 •w�N ��•Vl aVOS arm J NO" 09 IN 34 I,_ I i M= Encumbrance Worksheet 5/30/14 i Vendor Name: Vendor Number: ` City of Centerville Address: Federal Employer I.D. or Social Security#: 1880 Main Street, Centerville, MN 55038 41-1267014 Requestor's Name/Employee ID#: (for SWIFT entry) MN Tax I.D.#(if applicable): Cristina Covalschi 01135389 2015 Total amount of Original Agreement: $10,000 Starting Fiscal Year: (include initial request and all previous amendment totals) Start Date: 51112015 $ ' Total Amount of this Amendment: Initial End Date: 04/30/2016 Revised End Date: Please Check ONE OPTION for amendments: Time Only Money Only Time and Money I I ACCOUNTING INFORMATION Fiscal Year 2015 I Fund Dept ID Appr ID Project ID , Activity ID Amount 2302 H123 2139 H12555P $ 10,000 H123 $ H123 $ LCFDA#(if Federal$) i Fiscal Year 201 Fund Dept ID Appr ID Project ID Activity ID Amount H123 $ H123 $ H123 $ 1 Fiscal Year 201 Fund Dept ID Appr ID Project ID Activity ID Amount H123 $ H123 $ H123 $ i 1 FINANCIAL MANAGEMENT ONLY Authorized Signature for Date Encumbrance Contract Number 6 Origin Code Purchase Order Number Source Type Category CodeAccount ID 0 716— i0 NOTE: This page of the Agreement Contract contains conflAndal information and should not be reproduced or distributed externally without written permission from the Vendor. Intemal circulation of this page should only be to individualsroftes signing this Agreement Contract and those that require access to the tax identification number. I 34 ass ► Standard Grant Template Version 1.4,6/1 Grant Agreement Number 111111--6) OEMtTMENToe aU1Ua Between the Minnesota Department of Health and City of Centerville If you circulate this grant agreement internally,only offices that require access to the tax identification number AM all individuals/offices signing this grant agreement should have access to this document. Minnesota Department of Health Grant Agreement This grant agreement is between the State of Minnesota, acting through its Commissioner of the i Department of Health ("State") and City of Centerville("Grantee"). Grantee's address is 1880 Main Street, ' Centerville,MN 55038. ! Recitals I 1. Under Minnesota Statutes 144.0742 and §114D.50 Clean Water Fund, the State is empowered to enter into this grant agreement. t 2. The State is in need of assisting public water suppliers to protect the source of drinking water. j 3. The Grantee represents that it is duly qualified and will perform all the duties described in this agreement to the satisfaction of the State. Pursuant to Minnesota Statutes section 1613.98, subdivision 1,the Grantee agrees to minimize administrative costs as a condition of this grant. Grant Agreement 1. Term of Agreement 1.1 Effective date May 1, 2015,or the date the State obtains all required signatures under Minnesota Statutes section 16C.05, subdivision 2, whichever is later. The Grantee must not begin work until this contract is fully executed and the State's Authorized Representative has notified the Grantee that work may commence. 1.2 Expiration date April 30,2016,or until all obligations have been fulfilled to the satisfaction of the State,whichever occurs first. 1.3 Survival of Terms The following clauses survive the expiration or cancellation of this grant contract: 8. i Liability; 9. State Audits; 10.1 Government Data Practices; 10.2 Data Disclosure; 12. Intellectual Property; +I 14.1 Publicity; 14.2 Endorsement; and 16. Governing Law,Jurisdiction, and Venue. ! i 2. Grantee's Duties The Grantee,who is not a state employee,shall: -Complete to the satisfaction of the State all of the following duties: - Seal wells on private property located within the City DWSMA. i -The Grantee shall use the Clean Water Land and Legacy Amendment log on all materials that are purchased or produced under this Grant-Agreement(equipment,reports to the public,publications, } displays, videos). Failure to display the logo may render the Grantee ineligible for reimbursement. Page 1 of 7 i 35 i Standard Grant Template Version 1.4,6/14 Grant Agreement Number OrlitiM[N e�Nl�pN Between the Minnesota Department of Health and City of Centerville - If the project involves well(s) sealing, it is the Grantee's responsibility to inform MDH Well j Management section about the well sealing during normal business hours Monday to Friday, between 8 am and 4:30 pm. - On or before the end date of this Agreement,the Grantee shall provide the State with one electronic copy of all final products produced under this Grant Agreement, including reports,publications, software and videos. If required by the nature of the project,data collected during the project shall be reported in a format acceptable to the State. - The Grantee shall pay in full any licensed contractor or consultant hired for the purpose of completing any work under this Grant Agreement within 10 days of receiving payment from the State. - The Grantee shall submit an itemized invoice for the total cost of the project - Exhibits A and B are attached and incorporated into this grant agreement. Upon completion of the ' project Grantee shall submit a Grant Narrative Report (Exhibit A)and a Grant Invoice(Exhibit B). The Grant Narrative Report and the Grant Invoice shall be due no later than the expiration day of this Grant Agreement. - In the event the Grantee is unable to satisfactorily complete all the duties specified in this grant agreement, the Grantee may forfeit the final payment. Grantee who has not satisfactorily fulfilled the grant obligations, including but not limited to paying the contractor in full for all work performed by the contractor, will be denied participation in the next grant cycle. 3. Time The Grantee must comply with all the time requirements described in this grant agreement. In the performance of this grant agreement,time is of the essence, and failure to meet a deadline may be a basis for a determination by the State's Authorized Representative that the Grantee has not complied with the terms of the grant. The Grantee is required to perform all of the duties recited above within the grant period. The State is not obligated to extend the grant period. 4. Consideration and Payment 4.1 Consideration The State will pay for all services performed by the Grantee under this grant agreement as follows: (a) Compensation. The Grantee will be paid according to the following breakdown of costs: i Activity Grant Amount Seal private wells within the City DWSMA $10,000 Total J $10,000 I (b) Total Obligation The total obligation of the State for all compensation and reimbursements to the Grantee under this agreement will not exceed$10,000 (ten thousand dollars). Page 2 of 7 36 i Standard Grant Template Version 1.4,6/14 ' Grant Agreement Number 0E►AliNtMrei aE�l1M Between the Minnesota Department of Health and City of Centerville The following costs are not eligible and will be deducted from the final invoice,before reimbursement: -permitting fees payable to MDH(i.e.well sealing fee) -indirect or administrative costs related to the grant. (c) Travel Expenses The Grantee will be reimbursed for travel and subsistence expenses in the i same manner and in no greater amount than provided in the current"Commissioner's Plan" promulgated by the Commissioner of Minnesota Management and Budget ("MMB"). The Grantee will not be reimbursed for travel and subsistence expenses incurred outside Minnesota unless it has received the State's prior written approval for out of state travel. Minnesota will be ' considered the home state for determining whether travel is out of state (d) Budget Modifications. Modifications greater than 10 percent of any budget line item in the most recently approved budget(listed in 4.1(a) and 4.1(b))requires prior written approval from ' the State and must be indicated on submitted reports. Failure to obtain prior written approval for modifications greater than 10 percent of any budget line item may result in denial of modification request and/or loss of funds. Modifications equal to or less than 10 percent of any 1 budget line item are permitted without prior approval from the State provided that such modification is indicated on submitted reports and that the total obligation of the State for all compensation and reimbursements to the Grantee shall not exceed the total obligation listed in 4.1(b). 4.2 Terms of Payment (a) Invoices The State will promptly pay the Grantee after the Grantee presents an itemized invoice for the services actually performed and the State's Authorized Representative accepts the invoiced services. Invoices must be submitted in a timely fashion and according to the following schedule: upon completion of the services. The State does not pay merely for the passage of time. All the grant documentation(Grant Narrative Report, Grant Invoice, itemized invoice(s),electronic copies)must be submitted in one packet by either email or mail.The Grantee shall use the following mailing address: Attn: Cristina Covalschi Source Water Protection Minnesota Department of Health 1 PO Box 64975, St. Paul,MN 55164-0975 If the final invoice is not received by the State before the end date of this Grant Agreement,the Grantee may forfeit the final payment. i S. Conditions of Payment All services provided by Grantee pursuant to this agreement must be performed to I the satisfaction of the State,as determined in the sole discretion of its Authorized Representative. Further,all i services provided by the Grantee must be in accord with all applicable federal,state, and local laws,ordinances, j rules and regulations. Requirements of receiving grant funds may include, but are not limited to:financial reconciliations of payments to Grantees, site visits of the Grantee,programmatic monitoring of work performed Page 3 of 7 37 s A Standard Grant Template Version 1.4,6114 ' Grant Agreement Number OEf11t1Y[MTO/MEI 11 Between the Minnesota Department of Health and City of Centerville by the Grantee and program evaluation. The Grantee will not be paid for work that the State deems unsatisfactory, or performed in violation of federal, state or local law,ordinance, rule or regulation. i 6. Authorized Representatives i 6.1 State's Authorized Representative The State's Authorized Representative for purposes of administering this agreement is Cristina Covalschi, SWP Grants Coordinator, address: 625 Robert Street N,PO Box 64975, Saint Paul, MN 55164-0975,phone: 651-201-4696, email address: Cristina.Covalschi(@State.mn.us,or her successor, and has the responsibility to monitor I the Grantee's performance and the final authority to accept the services provided under this agreement. If the services are satisfactory, the State's Authorized Representative will certify acceptance on each invoice submitted for payment. 6.2 Grantee's Authorized Representative The Grantee's Authorized Representative is Mike Ericson, City Administrator,address: 1880 Main Street, Centerville, MN 55038,phone: 651- 429-3232, or his successor. The Grantee's Authorized Representative has full authority to ; represent the Grantee in fulfillment of the terms,conditions,and requirements of this agreement. If the Grantee selects a new Authorized Representative at any time during this agreement,the Grantee must immediately notify the State in writing,via e-mail or letter. 7. Assignment,Amendments, Waiver, and Merger 7.1 Assignment The Grantee shall neither assign nor transfer any rights or obligations under this agreement without the prior written consent of the State. 7.2 Amendments If there are any amendments to this agreement,they must be in writing. Amendments will not be effective until they have been executed and approved by the State and Grantee. 7.3 Waiver If the State fails to enforce any provision of this agreement, that failure does not waive the provision or the State's right to enforce it. 7.4 Merger This agreement contains all the negotiations and agreements between the State and the Grantee. No other understanding regarding this agreement,whether written or oral,may be used to bind either party. 8. Liability The Grantee must indemnify and hold harmless the State, its agents, and employees from all claims or causes of action, including attorneys' fees incurred by the State, arising from the performance of this agreement by the Grantee or the Grantee's agents or employees. This clause will not be construed to bar any legal remedies the Grantee may have for the State's failure to fulfill its obligations under this agreement. Nothing in this clause may be construed as a waiver by the Grantee of any immunities or limitations of liability to which Grantee may be entitled pursuant to Minnesota Statutes Chapter 466, or any other statute or law. 9. State Audits Under Minnesota Statutes section 16B.98, subdivision 8,the Grantee's books,records, documents, and accounting procedures and practices of the Grantee, or any other relevant party or transaction, are subject to examination by the State,the State Auditor, and the Legislative Auditor, as appropriate,for a minimum of six (6)years from the end of this grant agreement,receipt and approval of all final reports,or the required period of time to satisfy all state and program retention requirements,whichever is later. Page 4 of 7 38 -- I i a a.N s o A IStandard Grant Template Version 1.4,6/14 ILYA 111 Me Grant Agreement Number pt All [ALIN Between the Minnesota Department of Health and City of Centerville 10. Government Data Practices and Data Disclosure 10.1 Government Data Practices Pursuant to Minnesota Statutes Chapter 13.05, Subd. 11(a),the Grantee and the State must comply with the Minnesota Government Data Practices Act as it applies to all data provided by the State under this agreement, and as it applies to all data created, collected, received, stored,used,maintained,or disseminated by the Grantee under this agreement. The civil remedies of Minnesota Statutes section 13.08 apply to the release of the data referred to in this clause by either the Grantee or the State. If the Grantee receives a request to release the data referred to in this clause,the Grantee must immediately notify the State. The State will give the Grantee instructions concerning the release of the data to the requesting party before any data is released. The Grantee's response to the request must comply with the applicable law. 10.2 Data Disclosure Pursuant to Minnesota Statutes section 270C.65, subdivision 3, and all other applicable laws,the Grantee consents to disclosure of its social security number,federal employee tax identification number, and Minnesota tax identification number, all of which have already been provided to the State,to federal and state tax agencies and state personnel involved in the payment of state obligations. These identification numbers may be used in the enforcement of federal and state tax laws which could result in action requiring the Grantee to file state tax returns and pay delinquent state tax liabilities,if any. 11. Ownership of Equipment The State shall have the right to require transfer of all equipment purchased with grant funds(including title)to the State or to an eligible non-State party named by the State.This right will normally be exercised by the State only if the project or program for which the equipment was acquired is transferred from one grantee to another. 12. Ownership of Materials and Intellectual Property Rights 1 Z.1 Ownership of Materials The State shall own all rights, title and interest in all of the materials conceived or created by the Grantee, or its employees or subgrantees,either individually or jointly with others and which arise out of the performance of this grant agreement,including any inventions,reports, studies,designs,drawings, specifications,notes,documents, software and documentation, computer f based training modules, electronically,magnetically or digitally recorded material,and other work in whatever form("materials"). 1 The Grantee hereby assigns to the State all rights,title and interest to the materials. The Grantee shall, upon request of the State, execute all papers and perform all other acts necessary to assist the State to j obtain and register copyrights,patents or other forms of protection provided by law for the materials. The materials created under this grant agreement by the Grantee,its employees or subgrantees, individually or jointly with others,shall be considered "works made for hire" as defined by the United j States Copyright Act. All of the materials,whether in paper, electronic,or other form, shall be remitted to the State by the Grantee. Its employees and any subgrantees shall not copy,reproduce, allow or cause a to have the materials copied, reproduced or used for any purpose other than performance of the Grantee's obligations under this grant agreement without the prior written consent of the State's Authorized Representative. Page 5 of 7 39 WStandard Grant Template Version 1.4,6114 j Grant Agreement Number Between the Minnesota Department of Health and City of Centerville 12.2 Intellectual Property Rights Grantee represents and warrants that materials produced or used under this grant agreement do not and will not infringe upon any intellectual property rights of another including but not limited to patents, copyrights,trade secrets,trade names,and service marks and names. Grantee shall indemnify and defend the State,at Grantee's expense, from any action or claim brought against the State to the extent that it is based on a claim that all or parts of the materials infringe upon the intellectual property rights of another. Grantee shall be responsible for payment of any and all such claims, demands,obligations,liabilities,costs, and damages including,but not limited to,reasonable attorney fees arising out of this grant agreement,amendments and supplements thereto,which are attributable to such claims or actions.If such a claim or action arises or in Grantee's or the State's opinion is likely to arise, Grantee shall at the State's discretion either procure for the State the right or license to continue using the materials at issue or replace or modify the allegedly infringing materials. This remedy shall be in addition to and shall not be exclusive of other remedies provided by law. 13. Workers'Compensation: The Grantee certifies that it is in compliance with Minnesota Statutes section 176.181, subdivision 2,which pertains to workers'compensation insurance coverage. The Grantee's employees and agents, and any contractor hired by the Grantee to perform the work required by this Grant Agreement and ; its employees,will not be considered State employees. Any claims that may arise under the Minnesota Workers'Compensation Act on behalf of these employees, and any claims made by any third party as a consequence of any act or omission on the part of these employees, are in no way the State's obligation or responsibility. 14. Publicity and Endorsement 14.1 Publicity Any publicity given to the program,publications,or services provided resulting from this grant agreement, including,but not limited to, notices,informational pamphlets,press releases, research,reports, signs,and similar public notices prepared by or for the Grantee or its employees + individually or jointly with others,or any subgrantees shall identify the State as the sponsoring agency ' and shall not be released without prior written approval by the State's Authorized Representative, unless such release is a specific part of an approved work plan included in this grant agreement. 14.2 Endorsement The Grantee must not claim that the State endorses its products or services. 15. Termination i 1 S.1 Termination by the State or Grantee The State or Grantee may cancel this grant agreement at any time, with or without cause, upon thirty(30) days written notice to the other party. { 15.2 Termination for Cause If the Grantee fails to comply with the provisions of this grant agreement,the State may terminate this grant agreement without prejudice to the right of the State to recover any money previously paid. The termination shall be effective five business days after the State mails, by certified mail, return receipt requested,written notice of termination to the Grantee at J its last known address. 15.3 Termination for Insufficient Funding The State may immediately terminate this agreement if it does not obtain funding from the Minnesota legislature or other funding source; or if funding cannot be continued at a level sufficient to allow for the payment of the work scope covered in this agreement. Termination must be by written or facsimile notice to the Grantee. The State is not obligated to pay for any work performed after notice and effective date of the termination. However,the Grantee will be Page 6of7 40 i t N Standard Grant Template Version 1.4,6114 ' Grant Agreement Number I OVARTM[NIaMRAIiM Between the Minnesota Department of Health and City of Centerville entitled to payment,determined on a pro rata basis, for services satisfactorily performed to the extent that funds are available. The State will not be assessed any penalty if this agreement is terminated because of the decision of the Minnesota legislature, or other funding source,not to appropriate funds. i The State must provide the Grantee notice of the lack of funding within a reasonable time of the State receiving notice of the same. 16. Governing Law, Jurisdiction, and Venue This grant agreement,and amendments and supplements to it, shall be governed by the laws of the State of Minnesota.Venue for all legal proceedings arising out of this grant ` agreement,or for breach thereof, shall be in the state or federal court with competent jurisdiction in Ramsey County, Minnesota. 17. Lobbying Ensure funds are not used for lobbying, which is defined as attempting to influence legislators or other public officials on behalf of or against proposed legislation. Providing education about the importance of policies as a public health strategy is allowed. Education includes providing facts, assessment of data,reports, program descriptions, and information about budget issues and population impacts,but stopping short of making a recommendation on a specific piece of legislation. Education may be provided to legislators,public policy makers, other decision makers, specific stakeholders,and the general community. IN WITNESS WHEREOF, the parties have caused this grant agreement to be duly executed intending to be bound thereby. APPROVED: 1. Grantee 2. State Agency The Grantee certifies that the appropriate persons(s)have executed the Grant Agreement approval and certification that State fu dls have been grant agreement on behalf of the Grantee as required by applicable encumbered as required by Minn.Stat§§16A.1 S and 16C-05. articles,bylaws,resolutions,or ordinances. By: BY: (with delegated authority) Title: Title: Date: Date: By: f Title: I Date: I Distribution: J Agency—Original(dully executed)Grant Agreement Grantee State Authorized Representative I Page 7of7 I i 41 I FM-1—NNF S —0 —T—AJ Division of Environmental Health Exhibit A Section of Drinking Water Protection P.O.Box 64975 St.Paul,Minnesota 55164-0975 DEPARTMENTorHEAFTN 651/201-4700 ! I I GRANT NARRATIVE REPORT TEMPLATE ' ystem Name: PWSID: ddress: ontact Person Name: hone: Email: Describe the issue Why did you apply for funding? Was there a problem? Where/When did it take place? i I I Describe in detail the work that was performed Describe the results of this project; How did this work benefit your system?How was drinking j water and public health protected? i Would this work have happened in the absence of the grant program? ❑ Yes ❑ No I Assistance received—How did Minnesota Department of Health (MDH) or Minnesota Rural Water ! ssociation (MR WA) help?(i.e. MDH/MRWA consulted, recommended, analyzed, educated, advised, provided, etc.) How can the grant program be improved? j I I I 42 r i Pictures available? ❑Yes ONo Publication, software,videos available? ❑Yes ONo i DISCLAIMER I declare that the data on this document is correct Authorized Grantee Signature Date R MINNESOTA DEPARTMENT OF HEALTH USE ONLY ow much money was spent completing this work(total to include cost share) Estimate the number of people served by the PWS 43 i At I N N E S 0 T A Dhdsion of Environmental Health Exhibit B ' Section of Drinking Water Protection P.O.Box 64975 St.Paul,Minnesota 55164-0975 DFPARTMFNT6�NEAlTH 651/201-4700 Source Water Protection Plan Implementation Grant Invoice GRANTEE INFORMATION PWSID: System Name: Address: Contact Person Name: Phone: Fax: I E-mail: i INVOICE INFORMATION Is this the final invoice? ❑ Yes ❑ No WORK ITEMS AND EXPENDITURE DESCRIPTION—use an additional page if necessary Total Expenditures Net Invoice Amount to be Paid DISCLAIMER AND SIGNATURE I declare that no part of this claim has been previously billed to MDH,and that the Total Expenditures reflect only charges related to the source water protection project.I also declare that the data on this document Is correct and all transactions that support this claim were made in accordance with all applicable Federal and State statutes and regulations. I Authorized Grantee Signature Date I FOR MINNESOTA DEPARTMENT OF HEALTH USE ONLY I Grant Manager Signature Date PO: Approved by: Period of Service: Date sent to F.S: i I I i 44