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Home My WebLink About2006-06-28 CC Packet ~~ CITY COUNCIL & WORKSESSION MEETING Wednesday, June 28, 2006 6:30 p.m. COUNCIL MEETING L CALL TO ORDER 1. RoD CaD II. PUBLIC HEARINGS DL APPROVAL OF AGENDA IV. APPROVAL OF COUNCIL MINUTES 1. June 14,2006 City CouaeD Work Session Meeting Minutes (Pale 1) 2. June 14,2006 City Council Meeting Minutes (page 2-11) V. CONSENT AGENDA 1. City of Centerville June 15, 2006 through June 28, 2006 Claims (page 12) 2. Centennial Fire District Claims through JUDe 15, 2006 (Pale 13) 3. Encroachment Agreement, 1269 Mound Trail- Mr. & Mn. Babcook (Draintile in Easement) (page 14-19) 4. Pay Request #2, Volk Sewer & Water, Inc. - $177,494.40 (Hunten Crossing 3N Add.) (page 20-23) 5. Change Order #1, Volk Sewer & Water, IDe. - $2,139.00 (Hunten Crossing 3N Add.) (page 24-25) VL AWARDSIPRESENTATIONS/APPEARANCES 1. Centennial Lakes PoUce Chief Bob Makela - 200s Annual Report 2. Mr. Steve McDonald, ABDO, Eick & Meyen - 2005 Annual Audit 2. Centerville Lion's - 2006 Fete des Laes Celebration VIL NEW BUSINESS 1. Receive and Accept the 2005 Audit 2. Special Event Permit, Fireworks Permit, Temp. 3.2 Malt Liquor License, Noise Permit & Charitable Gambling Permit (Page 26-47) 3. Proposed Ordinance #06-#1##, Second Series Amending Section 30.02 Relating to Mayor and Council (page 48) 4. 2007 North Metro Telecommunications CommissionIMedia Center Proposed Budget (page 49-78) 5. Proposed Ordinance Language Prohibiting Fishing Near Roadway vm. OLD BUSINESS IX. ANNOUNCEMENTSJUPDATES 1. City Administrator, Mr. Dallas LanoD 2. CSAHI4 (Update) X. ADJOURNMENT **REMINDERS** July 4,2006 - Independence Day (City Hall Closed) July 5, 2006 - Parks & Recreation Committee Meeting - Being Rescheduled for July 19,2006- 6:30 p.m. - Council Chambers July 11,2006 - Rescheduled Planning & Zoning Commission Meeting - 6:30 p.m. - Council Chambers July 12,2006 - City Council Meeting - 6:30 p.m. - Council Chambers City Council 06-14-2006,8:40 p.m. Summary of Work Session Present were Mayor Mary Capra, Council members Michelle Lakso, Richard Terway, Jeff Paar and Tom Lee. Also present were Mark Statz, engineer, and Kurt Glaser, City attorney. The Council reviewed the special assessment policy as it related to possible assessments to the property on Old Mill Road that is being proposed for improvement by Jeff Hanzel. The Council agreed that Mr. Hanzel should absorb a larger than normal share to encourage the other property owners to participate without objection. The City would probably be willing to defer part of the cost to some of the properties, but in order to make sure that assessments are sustainable, the petitioning party must absorb a higher cost. The Council discussed the downtown redevelopment and specifically the possibility of purchasing key parcels if they come up for sale. The City administrator will keep in touch with property owners and bring it to the attention of the Council if properties become available for sale, and if possible, bring sale offers to the city in the form of an option agreement. The Council briefly discussed CSAH 14. A draft Joint Powers Agreement will be offered by Anon County in about two weeks. The Council discussed compensation for mayor and council. The last change was adopted in 1974. Staff was instructed to prepare a draft ordinance increasing compensation to $400 for mayor and $325 for council. Also an ordinance was requested that would prohibit anyone from applying for employment in the positions of administrator, finance director and public works director for two years after leaving council. The Council reviewed schedules for summer meetings to determine if a quorum would be present at all regular meetings. The Council discussed capital projects and specifically as to whether the City should consider an alternative public works garage site to allow the existing site for some kind of commercial use. Staff will continue to study the issue. The meeting was adjourned at 10:30 p.m. Dallas Larson, City Administrator / CITY OF CENTERVILLE Cl1Y COUNCIL MEETING JUNE 14,2006 6:30 p.m. Pursuant to due call . and notice thereot: the City of Centerville held their regularly scheduled meeting on June 14, 2006, at City Hall, 1880 Main Street. PRESENT: Mayor Mary Capra Council Member Lee Council Member Paar Council Member Terway Council Member Lak t , f UJ ABSENT: None STAFF: City Engineer Statz City Attorney Glaser City Administrator Larson L CALL TO ORDER Mayor Capra called the June 14,2006, City Council meeting to order at 6:35 p.m. n. PUBLIC BEARINGS None. m. SET AGENDA Mayor Capra added CSAH 14, pedestrians fishing, under Announcements and Updates. City Attorney Glaser requested that an update on the sex offender ordinance be added. Motion bv Council Member Pur. seconded bv Council Member Lee to aoorove the Mend. .. ",e.a4e4. AD in r,vet. Mo~n carried IP,DiqJO"Iv. IV. APPROVAL OF COUNCH. MINUTES 1. M4Y 23.2006 Citj CounciVP ~ Z Work Session Medina Min\ltes Motion by CouDdl Member '(erwav. seconded bv Council Member Lee. to aDorove ~y 23.. 2006 Ci(y CouaeUIP -' Z ~otk SessioD ~, minutes as preseDted. All in favor. Motion carried unanimouslv. /- City of Centerville Council Meeting Minutes JlDle 14.2006 2. May 24. 2006 City Council Work Session M4;etiq Min1}tes Mayor Capra requested the following change: On Page 3 of 8 correct the motion to be Motion by Council Member Lee, seconded by Council Member Paar. Mayor Capra asked whether the Ordinance should be amended to allow for administrative approval rather than requiring Council approval. Council discussed the matter and agreed that this should be an administrative approval. City Attorney Glaser indicated he would draft an ordinance amendment. Motion bv Council Member Lee. seconded bv Council Member Tenvav to aoorove th~ Mfa, ~~ ~~ City <;:~UD~ meetig ...,,,tes as A~endm. NI _q. r,yor. Mo"'n carried unanimously. v. CONSENT AGENDA 1. City ofCenterville May 24,2006 through June 14, 2006 Claims 2. Centennial Fire District May 12,2006 - May 31, 2006 & June 1, - June 8,2006 Claims 3. Anoka County Sesquicentennial- Request for Donation no to Exceed $300 Mayor Capra requested that Item 3 be removed for discussion. ~O,ioD bv CounciJ Memf1er Lakso. s~nde4 by (;qulI$iI M,~~r Pur. to aoorove Consent A2enda Items 1 and 2 as oresented. AU in favor. Motion carried u.-animo_1v . Mayor Capra explained that the Anoka County Historical Society has asked for a donation of $300 from cities with populations under 5,000 to help fund the sesquicentennial activities being planned throughout the County. Council discussed the recent issues regarding funding issues between the County and the City but agreed that the sesquicentennial events should be funded. ~tiOD '" Le$. ~on~~ bY LJkso. to 8Dorove CODIeIt~ A,e,d, Ittm ~ as ,..eptJd. All in favor. Motion carried unanimouslv. VI. A WARDSlPRESENTATIONSlAPPEARANCES None. VB. NEW BUSINESS Page 2 of 10 3 City of Centerrille CouIJcil Meeting Minutes June 14,2006 1. Conditional Vse Permit - Anpb County Rea1ignins Clearwater Creek City Administrator Larson reviewed the request from Anoka County and explained that the Planning Commission has recommended approval. Motion by Council Member Terway. seconded by Council Member Paar. to aDJl1Ov~ the (:onditjol!aJ lIte ~,rmit - An9P f,;q"ll1l Il~.inl! OearwJter Creek as reauested. AD in favor. Motion carried unanimouslv. 2. Ord. #7. Second S~es. Amendiflg Cbapter 154 of the City C9de Regarding Encroachments into Front Yards ~_tJon ~y Coun91 ~.ber I.4Ht- .9nd~ fly Coun~ tfember ,-a,r. to 'tPD~ve Ord. #7. Second Series. Amendment to Chanter 154 of the City Code Rel!ardin2 tncroachm.~ int~ ~Ilt Yard~. 1\11 in (avor. Motio" carried un,-.imouslv, 3. Resolution #06-031 - Reimbursement Resolution Improvement G.O. Bond City Administrator Larson indicated that this is a standard resolution during projects where spending predates the issuance of bond or debt for the project and this would allow the City to be reimbursed for those expenses from the proceeds of the bond Motion bv Council Member Lee.. seconded by Council Member Terwav. to annrove Reso~n M-O}l - B$iPlbunem~t ~luti@M "',~vcmen~ ~",9. )Iond. ^' ill favor. Motion carried unanimouslv. 4. ReQJ.1est for Proj)Osals for Financial Adyiso(y Services - EhlC!fS & Associates. Inc. City Administrator Larson explained that there were concerns about Staff handling the bond transaction so Staff requested a proposal for firms to oversee that process. Motion bv Council Member Lee.. seconded bv Council Member Terwav. to au111grize t"e 9ft .,.rTIJalcfS 10," ~f!, ov,nipt ff ttpe ,",-pdi" process not to e.eeect $7.000. All in favor. Motion carried unanimouslY. 5. Mr. Qrew 19lmson Baile Scout Project Recopition Mayor Capra indicated that the Eagle Scout project done by Drew Johnson was an excellent project for the City and noted that he did a lot of work and she would like to give him some recognition. She then said that she would like to send a letter on behalf of the City thanking him for the work on the project. Council agreed. 6. Joint Powers Agreement with Lino Lakes for 21st Avenue & Resolution #06-033 Page 3 of 10 1 City of Centervil1e Council Meeting Minutes June 14.2006 Motion by Councll Member Lee.. seconded by Councll Member Paar_ to aooroye Resolution #06-033_ aoorovinl! the Joint Powers Al!reement with Lino Lakes for 21st Avenue as amended. AU in favor. Motion carried unanimouslv. Council Member Lakso asked about the logistics about this where one city does not do what they agreed to do. City Attorney Glaser indicated that Staff calls them and then the attorney calls them and that usually works out. 7. Public Works Director's Recommendation for Purchase of Air Compressor & Air Tools - Costs in Budget Motion by Council Member Terway_ seconded by Council Member Lee.. to aoorove the Public Works Director's recommendation for ourchase of air comoressor & air tools uo to 517_000. AU in favor. Motion carried unanimously. Council Member Terway indicated that budget items like this should go on the Consent Agenda. Council agreed. 8. Consideration of Granting a Temporary Event Charitable Gambling Permit for Bingo. Raffies. Paddlewheels. Pull-tabs, Tipboards and a Temporary Event 3.2 Malt Liquor License for St. Genevieve's Annual Chicken Dinner - Sunday. August 20. 2006 from 11:00 a.m. to 5:00 p.m.. Subject to Submission of Certificate of Liquor Liability Insurance Associated with the Event Motion by Councll Member Paar_ seconded by Councll Member Terwav_ to aoorove Grantinl! a Temoorarv Event Charitable Gamblin!! Permit for Binl!o_ Rames- Paddlewheels_ Pull-tabs_ Tioboards and a Temoorarv Event 3.2 Malt Liouor License for St. Genevieve's Annual Chicken Dinner - Sunday_ AUDst 20_ 2006 from 11:00 a.m. to 5:00 o.m._ Subiect to Submission of Certificate of Liouor Liability Insurance Associated with the Event. AU in favor. Motion carried unanimously. Council Member Paar indicated that Mike from the Liquor Barrel would like to offer the Church discounted prices on the supplies for the event. 9. Resolution #06-032 - Automark Usage in Centerville Precinct - Elections Motion by Council Member Lakso_ secondecJ by Council Member Paar_ to aoorove ~01u~9" N06-032 - ~uto~~tk Usue iJt c,lJtervQk 'redact - EIectioQI. AD'" favor. Motion carried unanimouslv. Page 4 of 10 5 City of Centervil1e Council Meeting Minutes Jooe 14,2006 10. Parks &. Recre;t.tjon Committee's R~mmendatioJ1 to Securins Sponsorship of Kelly Miller Circus for 2007 Council Member Paar explained that the Kelly Miller Circus was a success and the Park & Recreation Committee would like approval to reserve a date for 2007. Mayor Capra asked that Staff review the contract prior to it being signed. Motion by Council Mel@ber Terway. secoqded by Council Member Pur. to anplVye tu P.~ . Jltcfelltion (::olllmittt&'s ret018p'eQd,don ~q Jet,re sDonsorshio of K~11v Miller Circus for 2007. All in favor. Motion carried UDaJlimously. 11. Launderville's Auto Repair, 7139 - 20th Avenue. Conditional Use Permit with six month ~view Council Member Terway explained that the Planning Commission reviewed this request and has recommended approval subject to a six month review process. Motion by Council Member Terway. seconded bv Council Member Labo. to aoorove Launderville's Auto Reoair. 7139 - 20th Avenue. Conditional Use Permit as oresented with six month review. AU in favor. Motion carried unanimouslv. 12. Authorize Grant Application - Safe Routes to School City Administrator Larson indicated that this is for the under crossing at Clearwater Creek and said that Staff would like to make a grant application as an attempt to obtain funding. He then said that the other issue is the idea of taking this a step further to add a crossing of the creek and sidewalk to move students to school. He further suggested a crossing north of the proposed under crossing to make this a more complete plan for moving kids to school. Mayor Capra indicated that about 12 years ago a bridge discussion for that area came up and they asked the City to buy a lot where there is now a house to get the kids to school and Council did not want to do so at that time. She then asked whether easements are in place. City Administrator Larson indicated that there are issues with that to work out but that would service a lot of area. He then said that if there is a way to do a combined application Staff would like to look into that to do a project to the north and south to service a lot of kids. City Engineer Statz indicated that a 10 foot culvert is required but they may be able to do an eight foot so it is wise to apply for the funding and then look further into the costs and the logistics of making the under crossing work. Page 5 of 10 It City of Centerville Council Meeting Minutes June 14,2006 Mayor Capra indicated that people have used the argument that there is no sidewalk or designated area to walk to get busing for their kids rather than having them walk. City Administrator Larson asked for authorization to apply for some, all, or none. Council Member Lee indicated he would like to stick with the first phase as it is too expensive to do it all at once. Council Member Paar indicated that the under crossing is the most important to him and would service the most people especially since 14 is being reconstructed. Council Member said he likes the idea but does not think the City can afford it or the underpass but the underpass is necessary. He then said that he would like to apply for the underpass but let them know that the intent is to do the northerly one as Phase ll. Mayor Capra indicated she would like to see it as high and wide as possible for safety, if it is possible to do. She then said that it may be possible to move it uphill because the house on the corner may be removed as part of the road reconstruction project. Council Member Terway thanked Staff for the suggestion and forward thinking but said he feels the underpass is most important at this time and with the other projects going at this time there is too much going on. City Engineer Statz indicated that there has not been a formal feasibility report on this and it may not be able to be done. Moti(tD by C~unciJ, ,M_@r Terway. seconded ~ Co,.,eil M_J>>er faa~~ to authorize the ,rant aoolieation for Safe Routes to School and list the proiects as Rom," Q4 teConMI"f p."i~ with ~ unclerstaqC>>., ".t tll~ (:iJ,y w,n. to do the orima" first and not linked tOllether. AD in favor. Motion earried unanimouslY, Council Member Lakso was not present for the vote. vm. OLD BUSINESS 1. Consider Adoption of Resolution Making Contingent Award of a Contract for Construction of 21st AvenueIBackage Road Proiect (Resolution #06-034) Motion by Counell Member Lee. seconded by Counell Member Terway. to aoorove Resolution #06-034. Awardin2 a Contract for Construction or 21st AvenuelBackalle Road Proiect. AD in favor. Motion carried unanimouslY. 2. Centerville Redi-Mix Request for Watermain Extension Page 6 of 10 1 City of Centerville Council Meeting Minutes June 14.2006 City Administrator Larson indicated that this was discussed previously to upsize the water main to allow for looping in the future and the property owner's expectation was to put in a six inch service from the County Road 54 to the east but the expected increase cost to make it an 8 inch water main would be about $15,000 plus engineering services and administrative costs. Motion by Council Member Paar. seconded by Council ~em"er Lee. to aoorove UpsiziDsr o( tv wattr II!lin plUI ucioeeriql services .. reeGlQ""dul '" ~tt. AD I, favor. Motio, carri~ unanimouslv. 3. Mr. Jeff tI!U'pl'~ leqJlest fur s~ Improvem~ts/Watermtrin &, Sewennain (Old Mill Road) City Administrator Larson provided an overview of the proposed improvements and asked Council to accept the feasibility report and consider approval to set a public hearing. Mayor Capra asked what could be done to lessen the impact to the larger property owners. City Administrator Larson indicated that there are ways to work it out to delay the impact or lessen the impact and that will be discussed further at the work session. Engineer Statz suggested assessing the full amount but deferring it until they want to develop the property. Motion bv Council Member Lee. seconded by Council Member Pur.. to aoorove ResoI'lti9D ~~ A~e,tin. tlJ, ~easibilip ~Ij and Set(jnsr a ~,~i~ JI~I fgr Julv 12. 2006. AD in favor. Motion carried un,nimouslv. Mr. Hanzal indicated that they are concerned about the neighbors and everyone wanted to know what it would cost and that was the point behind the feasibility study. 4. Sex Offender Ordinance City Attorney Glaser indicated that he and the Chief discussed the matter and the Chief feels that there would be a public safety benefit and it should only be for level three offenders with the reason being that data practices and privacy laws those are the only offenders that the public is allowed to know about. He then said that the ACLU may challenge such an ordinance. Mayor Capra indicated that she would like all three cities to do it if the City is going to. She then said that this should go before the Police Commission and obtain authorization from the other cities. IX. ANNOUNCEMENTSIUPDATES 1. City Administrator. Mr. Dallas Larson Page 7 of 10 f City of Centerville Council Meeting Minutes June 14,2006 city Administrator Larson indicated that there is an issue with curb stops in the Hunter's Crossing second addition and when the specs were written it included extension rods on water shutoffs but when the contractor installed the curb shutoffs in the subdivision they overlooked the pins for a large share of them and some have been fixed but approximately 6 remain. The Contractor indicated that the information was on site in the spec book that they want a rod but when the superintendent on site spoke with the engineering inspector and asked whether they wanted rods he said no so they did not put them in but after the fact it was found that they did Want them and then they began installing them. He then said that the super was not aware of it until this point because if they had known they would have told them to fix it right. He further said it was overlooked and it is a very minor dollar thing but more of a misunderstanding. The contractor indicated that they will dig up the lawns and fix them if that is what is wanted but they did not want to bother people. He then said that there are six that they want dug up. Staff explained that the Contractor has offered to forfeit $4,000 of his $8,000 retainer left. The Contractor indicated that they would purchase the longer rod and give it to the City. Council Member Terway indicated that his concern is there is a process set up that if this happens you get specific truck and tools and having some that are different and then the system does not work then more .damage could occur. He then said that from an operational standpoint he feels that this could be even worse if it is outside the system. He further said he would like it fixed to be standardized. City Administrator Larson agreed that they should be fixed but said that there is at least one of these shutoffs that is a small distance away from a very expensive stamped concrete driveway and there are soils out there that are notoriously unstable and his concern on this one is that as hard as you try, the soils could be moved under the high priced driveway and now there is a $15,000 driveway that breaks up and the warranty is up and the City has an issue. Council Member Terway indicated he would make an exception for that one but he thinks the others should be done. City Engineer Statz indicated that the riser would be in there and it would start out with short and Staff would only need the long one if it pulled off Council Member Terway indicated that, if there is a fail safe other than a pin, then he would not have an issue. Page 8 of to 9 City of Centerville Council Meeting Minutes June 14,2006 City Attorney Glaser suggested having the engineer look at the device to see if it will work appropriately. City Engineer Statz indicated that Mr. Patzer objected to the ring idea but there could be a modification that can be made. Mayor Capra said she would be fine with that. l\So~ bY ~oqJIeD Medltper Jer,vav. seee8!1~r b.x <;o.n$iI,M~"'14 to aw~~ the COrrectiODS as discus,ed t02ether with $4.000 or the retainin2 forfeited to the ,ttY. ~les - 4. ~US - JlPf&J:). ~9ti9D WYie4r Council Member Paar said he feels it should be fixed the way it was supposed to be. City Administrator Larson indicated that they looked into the 2004 bond cash flow shortage. He then said that the initial estimates were higher than costs bid and the estimated assessments were 41% of the estimated costs so when the bids and costs resolved came in lower 41% was used rather than look at what the City should pay 41 % of total project costs so less money was assessed than what should have been. City Administrator Larson indicated that Staff will look into funding the remainder noting that over the life of the bond, the short fkll is $160,000 and Staft'will come back with recommendations for funding it. City Administrator Larson indicated that every year the grass dies along the edge of the sidewalk and Staff reseeds it. He then said that Staff would like Council to consider a row of sod on each side of the sidewalk to clean up the bare spot at a cost of $695. Mayor Capra indicated this will happen every year from salt and plowing and she would rather landscape the side against the building and wait on the other side. Council agreed to wait. 2. Busines$ person MOtiOD bv COUDCn Member TeNav. seconded bv Coun~n Member Pur to affirm Sc~", 1M .. ~ViDess P~I'SO. Clf, the '):'"ear't AU iq favor. Mttion CfI'Ii!d uDanimouslv. Mayor Capra indicated that the Business Appreciation dinner was very nice and thanked all the Staff for their efforts as well as the catholic women for their assistance. 3. CS~ 14 Mayor Capra indicated that some residents called her regarding the comer near Water Works because people park and fish there and it is a dangerous situation as there is not Page 9 of 10 )0 City of Centerville Council Meeting Minutes June 14,2006 room there. She then said that she would like the City to contact Anoka County regarding it. City Attorney Glaser indicated that the City could post signs there for no fishing but would need county permission to install the signs. Mayor Capra indicated she would like to take photographs of the situation and show the County the issue. X. ADJOURNMENT Motion by Council Member Terwav. seconded bv Coun~iI Member Lee to adiourn the .,eetiq, au 8;39 ,.... 1\1 iq favor. ~~9n qrrl~ un"uil9ousty. Transcribed by: Joan Lenzmeier, Recording Secretary TimeSaver Off Site Secretarial, Inc. Page 10 of 10 // CITY OF CENTERVILLE 06/23/06 9:28 AM Page 1 ervi[{e *Check Summary Register@ Name Check Date Check Amt 10100 MAIN STREET BANK Paid Chk# 021397 ASSURANT EMPLOYEE BENEFIT 6/28/2006 Paid Chk# 021398 BOARD OF WATER COMMISSIO 6/28/2006 Paid Chk# 021399 BONESTROO, ROSENE, ANDERL 6/28/2006 Paid Chk# 021400 CALIFORNIA CONTRACTORS SU 6/28/2006 Paid Chk# 021401 CINGULAR WIRELESS 6/28/2006 Paid Chk# 021402 E.G. RUD & SONS 6/28/2006 Paid Chk# 021403 HAWKINS WATER TREATMENT 6/28/2006 Paid Chk# 021404 INSTRUMENTAL RESEARCH INC 6/2812006 Paid Chk# 021405 KJOHLHAUG ENVIRONMENTAL 6/28/2006 Paid Chk# 021406 MINNESOTA PIPE & EQUIPMENT 6/28/2006 Paid Chk# 021407 MINNESOTAfWISCONSIN PLAYG 6/28/2006 Paid Chk# 021408 PRESS PUBLICATIONS 6/28/2006 Paid Chk# 021409 PUBLIC EMPLOYEES INS PROG 6/28/2006 Paid Chk# 021410 REHBEINS BLACK DIRT 6/28/2006 Paid Chk# 021411 RO-SO CONTRACTING INC 6/28/2006 Paid Chk# 021412 SEH 6/28/2006 Paid Chk# 021413 SWEENEY, KRIS 6/28/2006 Paid Chk# 021414 TIME SAVER 6/28/2006 Paid Chk# 021415 US BANK CORPORATE TRUST S 6/2812006 Paid Chk# 021416 VOLK SEWER & WATER 6/28/2006 Paid Chk# 021417 WASTE MANAGEMENT 6/28/2006 Paid Chk# 021418 WINNICK SUPPLY 6/28/2006 Paid Chk# 021419 XCEL ENERGY 6/28/2006 Total Checks JUNE 2006 $121.50 VOL. SHORT TERM DISABILITY $169,000.00 PAYMENT FOR LAND ACQUISTION- $34,556.67 GENERAL - STORM WATER UTIIL TV $245.28 CAUTION BARRIER TAPE & PIGSKIN $129.89 651-891-3328 CELL PHONE CHGS $1,146.00 OFFICE SETUP, RESEARCH PROJ MN $1,108.76 CHEMICALS $38.00 MAY 2006 WATER TEST $275.00 PROF. SERVo 2005-185 CENTERVIL $897.80 WOVEN FABRIC - PARKS $36,920.00 GAMETIME PLAY EQUIPMENT - LAMO $35.76 ORD #6 SECOND SERIES $19,145.53 JULY 2006 INS. $31.68 DIRT $1,850.00 PLUG EX. WATERMAIN TEE - FOX R $274.26 PROF SERV THRU 5-31-06 $43.88 MILEAGE REIMBURSMENT FROM 6-8 $144.00 5-24-06 COUNCIL MEETING $745,550.00 #33547700 MN GEN OBLB TEMP IMP $177,494.40 PAY REQUEST #2 & CHANGE ORDER $623.50 SPRING 2006 CLEAN UP DAY - GAR $86.93 OPERATING SUPPLIES - MASONRY B $3,404.75 1694 SOREL ST - SERV THRU 06-0 $1,193,123.59 NOTE: THERE WILL BE AN UPDATED LIST OF DISBURSEMENTS ON 6-28-06 FOR APPROVAL. /;l Centennial Fire District Check Regtster 6115/2006 The disbureernents /i818d below are submitl8d by the CWrI8nniaI Fire DiItrict for your epprovaI: DATE CHECKI NAME ACCOUNT AMOUNT 611512006 15208 Barna, Guzy & Steffen, Ttd. 42170 . Legal Expenees ~.OO 6115/2006 15209 Cascade Subscription Service, Inc. 42210 - Subscriptions 67.00 611512006 15210 Centenni8I Utilities 42251 . Stlilticn 1 . Gas 143.75 611512006 15211 Cenl8r Mart 42100 - Fuel and Lube 145.09 811512006 15212 CenterPoint Energy 42253 - S1ation 2 - Gas 199.68 611512006 15213 Comcast 42180 - Office Supplies Expense 95.00 611512006 15214 Connexus Energy 42252 - S1ation 1 . Electric 848.28 611512006 15215 Curtis 1000 42180 - Office Supplies Expense 308.73 611612006 15216 David Bruder 42180 . Office Suppliee Expenee 17.10 611512006 15217 Diversified Texturing & Engraving 42130 - Equipment Expense 18.00 811512008 15218 Emergency Apparatus Maintenance 42200 - Vehicle Maimenence 354.90 611512006 15219 Ernerg8llC'/ Medical Products, Inc. 42260 - Medical Supplies 2,539.68 611512006 15.220 Fratt8Ione'. Hardware 42110 - Other M8intIen8nc:e 248.35 6115/2006 15221 Grainger 42130 - Equipment Expense 44.13 6/1512006 15222 Image Printing & Oraphlcs 42180 - Office SuppIIea ExpenM 31.15 611512006 15223 Loffter Business Systems 42180 - Office Supplies Expense 39.29 811512008 15224 Malloy, Monlaque, Kamowski & Radosevlch 42180 - Accounting Services 4,117.00 611512006 15225 Mcleod USA 42240 - Telephone 363.72 611512006 15226 MetrocaII 422010 - Telephone 183.93 611512006 15227 Minnesota Depertment of Health 42110 - Other Maintenance 35.00 611512006 15228 NexI8I 42240. Telephone 143.58 611512006 15229 Qwest 42240 - Telephone 321.76 6115/2006 15230 V.nzon WireIe8a 45600 - FF Cell Phone Expenee 62.78 6/15/2006 15231 XceI Energy 42254 - Station 2 - Electric 513.04 611512006 15232 Zep Manufac1uring Company 42230 . C'-'Ing Supplies ServIce 242.33 6115/2006 15233 J.l. Industries 45600 - Donated Item Expense 11,691.00 6/1512008 15234 Image Printing & Graphics 45010 - Safety Camp Expense 60.90 611512006 15235 Paper Direct 45010 - Safety Camp Expense 143.88 Total 22.819.03 1of1 /1. ENCROACHMENT AGREEMENT AGREEMENT ("Agreement") made this _ day of June, 2006, by and between the CITY OF CENTERVILLE, a Minnesota municipal corporation ("City"), and Thomas & Barbara Babcock ("Landowner(s)"). RECITALS A. Landowners own in fee as joint tenants the real property situated in Anoka County, Minnesota, legally described as follows ("Subject Property"): Lot 4, Block 1, Buechler Estates PIN# 153122330016 B. Landowners' drainage tile (hereinafter "Structure") is located within the City's easement. Landowners seek permission from the City to encroach in the City's easement. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1. The City hereby grants Landowners permission to encroach into the City's easement to the extent indicated on the Certificate of Survey attached hereto as EXHIBIT "A". 2. Nothing in this Agreement shall be deemed an abandonment, vacation or waiver ofthe City's interest in the easement. I 11/ 3. Landowners, for themselves, their heirs, successors and assigns, hereby agree to defend, indemnifY and hold the City harmless from all costs and expenses, claims and liability, including attorney fees, relating to or arising out of the grant to Landowners of permission to encroach into the City's easement. Landowners further agree to indemnifY and hold the City harmless from any damage caused to the Subject Property as a result of maintenance of the City's easement, including any damage to the structure caused in whole or part by the encroachment into the City's easement. 4. The City does not warrant title or guarantee the continuing right of Landowners to maintain the Structure in the City's easement. 5. Landowners may not replace the Structure in the City's easement if the Structure is damaged to more than fifty percent (50%) of its fair market value, as measured immediately prior to the damage. 6. The City may direct removal of the Structure, at the Landowners' sole cost and expense, upon thirty (30) days written notice if the City determines that the Structure will interfere with City's use of the easement or if Landowner has failed to comply with any city requirements associated with the encroachment. If the removal is not completed by Landowner within the time prescribed, the City may remove the encroachment at Landowner's expense and Landowner agrees that the City may collect the costs of such removal as a special assessment against the property. Landowner specifically waives the requirement for public hearings associated with the assessment. 7. This Agreement shall run with the land and shall be recorded against the title to the Subject Property. 2 /~ CITY OF CENTERVILLE By: Mary Capra, Mayor By: Teresa Bender, City Clerk ~ By. ~. By;f~alCL 0 a/L~ STATE OF MINNESOTA ) )ss. COUNTYOFANOKA ) The foregoing instrument was acknowledged before me this _ day of , _, by Mary Capra and Teresa Bender, Mayor and City Clerk, respectively, of the City of Centerville, a Minnesota municipal corporation. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA The fo.regoing ~ent was acknowledged before m.e.. this ~day of O~ , ~()t , '-71()~ ~ 'd/d-./, (insert single person usband and wi e or??)r- xJ~ (__'H""~~~ Notary Public DRAFTED BY C!T~PF CENJ.rRVJLLE /I',f{) >q'~ ~ fir; ~/ db) ~AI..:537)..:iP TERESA BENDER NOTARY PlIQLIC - MINNESOTA My CalIlmIss/on Expires Jan. 31, 2010 3 /rt .' "'~i;'~~ I '~;~~l:~ 2-G ~ ~-r;e iIHi~r~~'" .HY~~Nl1DSs~~~ING' P.A. ~r'" i~~8:q.r?~5h::~roP.l?~ed, Top of Blo~k ". ~'1'd'~'>-'it....~...!,,! ....'1"., 1: i~'8??;O:~~rPr~p-;'~ed; Garage Floort~' .~. tf8~qrfr~~~~.~~~d. L~west Floor'" " I , ~~;:~'::;::>:' ~:' .'~ ',.' ':..' " . T)pe of. Building - . .." .', :' '~~\\ '6Q,."e'M(,~.\- ;~:':::,:': ',' ,^l~ \ ~,,-\- ~.~~~~ . ". ;~;(.:,)~: '; !.: i.'. i., '.'~~ ,. , ..... ..~". ' . ~ur\ttyqrs Gl<"~a, ;-l- attmfindt A IJ I ",1., 18898:::,81' 244/32'." , 30'",. :..... 8700 Jefferson Highwoy 05seo. Minnesota 553()9 493-5.761 o o ~ LQv.Je...~ 0.1# tb~ I 1-- "'...... I C> ~,\,. I "1 V, - \/\ :: 4'1 e..it:' ..." = - ~ ~',,~:;~ Dt;gf}t'; , ! "4~ i._:. :-:.~i~ /" . 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(> ;v .f> In tervi{{e 'EstaEfisfiecf 1857 1880 1vIain Street, Centervi{fe, 'lvlW 55038 (651)429-3232 fax (651)429-8629 RECEIVED OF 2531 AMOUNT $75.00 Designs By Deb FOR: Encroachment Aareement CHECK # 5711 Application Fee SURCHARGE NA 1269 Mound Trail BY Kim Stephan June 15, 2006 Thank you for your business. Recei~t # 2 5 3 1 .\ ~, /y ,. I..................... . . . . . . . . . . . . ::.::.:..::~~& ~tlgM~~MK&~;;il~~ Owner: Citvof Centerville, 1880 Main Street, Centerville, MN 55038 Date: June 20, 2006 For Period: 5/13/2006 to 6/20/2006 Request No: 2 Contractor: Volk Sewer & Water Inc., 1566 Ward Lake Dr. NW, Andover, MN 55304 CONTRACTOR'S COpy FOR YOUR FILE CONTRACTOR'S REQUEST FOR PAYMENT HUNTERS CROSSING 3RD ADDITION - UTILITY AND STREET IMPROVEMENTS BRA FILE NO. 000616-05141-0 SUMMARY 1 Original Contract Amount $ 503,886.97 2 Change Order - Addition $ 2,139.00 3 Change Order - Deduction $ 0.00 4 Revised Contract Amount $ 506,025.97 5 Value Completed to Date $ 291,275.68 6 Material on Hand $ 0.00 7 Amount Eamed $ 291,275.68 8 Less Retainage 5% $ 14,563.78 9 Subtotal $ 276,711.90 10 Less Amount Paid Previously $ 99,217.50 11 Liquidated damages - $ 0.00 12 AMOUNT DUE THIS REQUEST FOR PAYMENT NO. 2 $ 177 ,494.40 Recommended for Approval by: BONESTROO, ROSENE, ANDERLlK & ASSOCIATES, INC. A-~ Approved by Contractor: VOLK SEWER & WATER INC. C;L_~ ~~k Approved by Owner: CITY OF CENTERVILLE Specified Contract Completion Date: Date: 61605141REQ2.x1s Z-D sg Contract Unit Current Quantity Amount No. Item Unit Quantity Price Quantity to Date to Date PART 1 . SANITARY SEWER: 1 MOBILIZATION LS 1 6500.00 0.25 0.75 $4,875.00 2 REMOVE BARRICADE EA 2 25.00 1 $25.00 3 CONNECT TO EXISTING MANHOLE EA 2 350.00 2 $700.00 4 8" PVC SANITARY SEWER, SDR 35 LF 2140 16.50 2140 $35,310.00 5 4' DIAMETER SANITARY MH, 8' DEEP EA 8 1600.00 8 $12,800.00 6 4' DIAMETER SANITARY MANHOLE OVERDEPTH LF 24 100.00 8.66 23.66 $2,366.00 7 IMPROVED PIPE FOUNDATION LF 2140 1.50 454 454 $681.00 8 CLOSED CIRCUIT TV INSPECTION LF 2140 0.68 $0.00 TOTAL PART 1 - SANITARY SEWER: $56,151.00 PART 2. WATER MAIN: 9 CONNECT TO EXISTING 8" WATER MAIN EA 2 250.00 2 $500.00 10 8" PVC WATER MAIN LF 1690 20.60 490 1690 $34,814.00 11 6" PVC WATER MAIN LF 630 16.25 230 630 $10,237.50 12 6" GATE VALVE AND BOX EA 1 745.00 1 $745.00 13 8" GATE VALVE AND BOX EA 1 962.00 3 $2,886.00 14 SALVAGE AND REINSTALL 8 X 6 REDUCER EA 2 550.00' 2 $1,100.00 15 SALVAGE AND REINSTALL HYDRANTNALVE EA 2 650.00 2 $1,300.00 16 HYDRANT WITH VALVE EA 4 2600.00 1 4 $10,400.00 17 DUCTILE IRON FITTINGS LB 2500 1.75 833 2333 $4,082.75 18 6" PIPE RESTRAINT EA 30 30.00 11 26 $780.00 19 8" PIPE RESTRAINT EA 21 40.00 15 26 $1,040.00 20 IMPROVED PIPE FOUNDATION LF 500 0.01 $0.00 TOTAL PART 2 - WATER MAIN: $67,885.25 PART 3. SERVICES: 21 1" CORPORATION STOP EA 44 95.00 44 44 $4,180.00 22 1" CURB STOP AND BOX EA 44 110.00 44 44 $4,840.00 23 1" TYPE "K" COPPER WATER SERVICE LF 1940 9.00 1962.5 1962.5 $17,662.50 24 8" X 4" PVC WYE EA 44 50.00 44 $2,200.00 25 4" PVC, SCH. 40 SERVICE PIPE LF 1950 9.00 1974 1974 $17,766.00 26 INSULATION, 2" THICK SF 300 1.50 $0.00 TOTAL PART 3 - SERVICES: $46,648.50 PART 4 - STORM SEWER: 27 12" RCP STORM SEWER, CLASS 5 LF 485 19.53 485 485 $9,472.05 28 12" HDPE STORM SEWER LF 235 15.38 235 235 $3,614.30 29 15" RCP STORM SEWER, CLASS 5 LF 85 20.83 85 85 $1,770.55 30 18" RCP STORM SEWER, CLASS 5 LF 332 23.26 332 332 $7,722.32 31 24" RCP STORM SEWER, CLASS 3 LF 40 30.97 40 40 $1,238.80 32 15" FLARED END SECTION, INCLUDING TRASH GUARD EA 2 700.00 2 2 $1,400.00 33 24" FLARED END SECTION, INCLUDING TRASH GUARD EA 1 1200.00 1 1 $1,200.00 34 CONNECT TO EXISTING CATCH BASIN EA 2 550.00 2 2 $1,100.00 35 CLASS III RANDOM RIPRAP CY 15 75.00 15 15 $1,125.00 36 2' X 3' CB EA 4 1000.00 4 4 $4,000.00 37 4' DIAMETER STORM CBMH EA 4 1400.00 4 4 $5,600.00 38 4' DIAMETER STORM SEWER MH EA 1 1300.00 1 1 $1,300.00 39 27" DIAMETER CATCH BASIN EA 1 800.00 1 1 $800.00 40 SEEDING, INCL. SEED, FERTILIZER, MULCH, AND DISK ANCHOR AC 0.25 2500.00 $0.00 41 PROTECTION OF CATCH BASIN, NON-STREET EA 2 200.00 $0.00 42 SIL T FENCE, REGULAR LF 200 3.00 178 178 $534.00 43 EROSION CONTROL BLANKET SY 100 1.50 $0.00 TOTAL PART 4 - STORM SEWER: $40,877 .02 PART 5 . STREETS: 44 TRAFFIC CONTROL LS 1 1100.00 0.5 $550.00 45 SAWING BITUMINOUS PAVEMENT LF 75 5.00 27 27 $135.00 46 REMOVE BITUMINOUS PAVEMENT SY 50 5.00 145 145 $725.00 47 SUBGRADE PREPARATION - STREET SY 9600 0.77 9425 9425 $7,257.25 48 SUBGRADE PREPARATION - TRAIL SY 400 1.02 333 333 $339.66 49 GEOTEXTILE FABRIC SY 9600 1.45 4800 4800 $6,960.00 50 SELECT GRANULAR BORROW (CV) CY 5300 14.66 2650 2650 $38,849.00 51 AGGREGATE BASE, CLASS 5 TN 3600 13.73 ~ 100 1100 $15,10"3.00 52 AGGREGATE BASE, CLASS 5 - TRAIL TN 150 13.73 $O.OOlJ 5 ~605141 RE Q2.xls Contract Unit Current Quantity Amount No. Item Unit Quantity Price Quantity to Date to Date 53 TYPE LV 3 NON WEARING COURSE MIXTURE (B) TN 990 42.33 $0.00 54 TYPE LV 3 WEARING COURSE MIXTURE (B) TN 750 43.86 $0.00 55 BITUMINOUS MATERIAL FOR TACK COAT GAL 400 2.09 $0.00 56 BITUMINOUS WEAR COURSE, TYPE 41A, TRAIL TN 75 53.55 $0.00 57 SURMOUNTABLE CONCRETE CURB AND GUTTER LF 4600 8.06 $0.00 58 TRUNCATED DOME PANEL SF 8 20.40 $0.00 59 6" CONCRETE PEDISTRIAN CURB RAMP SF 60 5.10 $0.00 60 4" PERFORATED POLYETHYLENE PIPE LF 4600 1.50 2700 2700 $4,050.00 61 SKIDSTER (BOBCAT WITH OPERA TOR) HR 10 75.00 $0.00 62 STREET SWEEPER (PICKUP BROOM W/OPERATOR) HR 20 150.00 $0.00 63 WATER FOR DUST CONTROL 1000 GAL 30 20.00 $0.00 64 REM AND REPL CONC SIDEWALK- DUPRE ROAD SF 200 4.08 $0.00 65 REM AND REPL CONC C & G- HUNTERS CROSSING 2NI LF 30 16.32 $0.00 66 TEMP. ROCK CONSTRUCTION ENTRANCE TN 50 22.00 $0.00 67 PROTECTION OF CB IN STREET - FURNISH AND INSTALL WIMCO EA 8 375.00 8 8 $3,000.00 TOTAL PART 5 - STREETS: $76,968.91 CHANGE ORDER NO.1 1 REMOVE BLACK DIRT OUT OF ROADBED LS 1142.50 1 1 $1,142.50 2 MOVE BLACK DIRT FOR SERVICES LS 260.00 1 1 $260.00 3 MOVE FENCE AND BRUSH LS 75.00 1 1 $75.00 4 PLACING AND COMPACTING IMPORTED FILL LS 382.50 1 1 $382.50 5 PRIME CONTRACTOR OVERHEAD 15% LS 279.00 1 1 $279.00 TOTAL CHANGE ORDER NO.1 $2,139.00 TOTAL PART 1 - SANITARY SEWER: TOTAL PART 2 - WATER MAIN: TOTAL PART 3 - SERVICES: TOTAL PART 4 - STORM SEWER: TOTAL PART 5 - STREETS: TOTAL CHANGE ORDER NO.1 TOTAL WORK COMPLETED TO DATE $56,757.00 $67,885.25 $46,648.50 $40,877.02 $76,968.91 $2,139.00 $291,275.68 61605141REQ2.x1s jL. PROJECT PAYMENT STATUS OWNER CITY OF CENTERVILLE BRA FILE NO. 000616-05141-0 CONTRACTOR VOLK SEWER & WATER INC. CHANGE ORDERS No. Date Description Amount 1 6/16/2006 This Change Order provides for additional work on this project. $2,139,00 See Change Order. Total Change Orders $2,139.00 PAYMENT SUMMARY No. From To Payment Retainage Completed 1 04/01/2006 05/12/06 99,217.50 5,221.95 104,439.45 2 05/13/2006 06/20/06 177,494.40 14,563.78 291,275.68 Material on Hand Total Payment to Date $276,711.90 Original Contract $503,886.97 Retainage Pay No 2 14,563.78 Change Orders $2,139.00 Total Amount Earned $291,275.68 Revised Contract $506,025.97 61605141REQ2.xls 23 CONTRACTOR'S COpy ~ 0W>>ec Ci ofC~_1880M';'_C_W;55038 ' B.;::A:>>::.:::.:::.;:;.:>':.:>:> Contractor, Volk Sewer & Water Inc., 1566 Ward Lake Dr. NW, Andover, MN 55304 ~'ll~~~~l~u~~~ Bond Co an: United Fire and Casu Co., P. O. Box 73909, Cedar Ra ids, IA52407 Bond No: 54-157931 CHANGE ORDER NO. 1 HUNTERS CROSSING 3RD ADDITION . UTILITY AND STREET IMPROVEMENTS BRA FILE NO. 000616-05141-0 Description of Work Part A: Part A of this Change Order provides for the removal of poor soils (black dirt) within the roadway. Part B: Part B of this Change Order provides for removing black dirt from the stockpile in order to install two services. Part C: Part C of this Change Order provides for the removal of fence and brush in the line of the storm sewer on the Southwest Part D: Part D of this Change Order provides for placing and compacting the imported fill for the trail. Part E: Part E of this Change Order provides for prime Contractor overhead of 15%. No. Item CHANGE ORDER NO; 1, PART A REMOVE BLACK DIRT our OF ROADBED TOTAL CHANGE ORDER NO. 1, PART A Unit Contract Quantity Unit Price Total Amount LS $1,142.50 $1,142.50 $1,142~50 2 CHANGE ORDER NO.1, PART B MOVE BLACK DIRT FOR SERVICES TOTAL CHANGE ORDER NO.1, PART B LS $260.00 $260.00 $260.00 3 CHANGE ORDER NO. 1, PART C MOVE FENCE AND BRUSH TOTAL CHANGE ORDER NO.1, PART C LS $75.00 $75.00 $75.00 4 CHANGE ORDER NO.1, PART D PLACING AND COMPACTING IMPORTED FILL TOTAL CHANGE ORDER NO. 1, PART D LS $382.50 $382.50 $382.50 5 CHANGE ORDER NO. 1, PART E PRIME CONTRACTOR OVERHEAD 15% TOTAL CHANGE ORDER NO. 1, PART E LS $279.00 $279.00 $279.00 TOTAL CHANGE ORDER NO.1, PART A TOTAL CHANGE ORDER NO.1, PART B TOTAL CHANGE ORDER NO. 1, PART C TOTAL CHANGE ORDER NO. 1, PART D TOTAL CHANGE ORDER NO.1, PART E TOTAL CHANGE ORDER NO.1: $1,142.50 $260.00 $75.00 $382.50 $279.00 $2,139.00 r; J}- r 2-\ ...U~ t,.... ~ ~~ 61605141CH01.x1s Original Contract Amount Previous Change Orders This Change Order Revised Contract Amount (including this change order) $503,886.97 $0.00 $2,139.00 $506,025.97 CHANGE IN CONTRACT TIMES Original Contract Times: Substantial Completion (days or date): Ready for final Payment (days or date): Increase of this Change Order: Substantial Completion (days or date): Ready for final Payment (days or date): Contract Time with all approved Change Orders: Substantial Completion (days or date): Ready for final Payment (days or date): Recommended for Approval by: BONESTROO, ROSENE, ANDERLIK & ASSOCIATES, INC. 4r-~ Date: ~...2..()~O' Approved by Contractor: YOLK SEWER & WATER INC. Approved by Owner: CITY OF CENTERVILLE Q~~~ Date Date cc: Owner Contractor Bonding Company Bonestroo & Assoc. 61605141CHOl.xls ;3 il II II ! :1 I il I I I I I I I I I I I T ABLE OF CONTENTS 2005 ANNUAL REPORT Message from the Chief 2 Penonnel 4 Financial Overview (; Alcohol and Tobacco CompUance 10 . . ,'" <J"::;,,~;'c::, ,z. ",' ,", "c ",-:" Crime Prevention 13 Firearms 15 . ~ ~: '., ,-. '".... ..~:... -..-::'~.'~~ )' ~ . ~ ~ - - - - -~ - ~.. - ...._-~-.-,- -~ .-"- - - - - - Forfeitures 19 , , .' ;;::;j.".~; ~, : _ ::'~,t~,>..", :,"~ " l,;:,;~;:;~"J:.!: Medical 22 Pollce Reserves 25 Safe & Sober 27 I I I I M ISSION STATEMENT il II I I I I I I I I I I The Cet\tennial Lakes Police Department is committed to excellence, fairness and compassion in providing professional police services in accontance with the law, reflective of the priorities and shared values of the eommuoi1ies served, and in harmony with the mission of the cities of Centerville, Circle Pines, aDd Lexington. PRINCIPLES )> Our higIMsI priority is the protection of life and property with respect for constitutional rights. )> We emphasize prevention and safety by providing edvcotion and information to our communities. )> We utilize training, tec1mology and innovation to achieve excellence in Community Oriented Policing. )> We provide leadership to the police profession and support for our fellow officers by recognizing and investing in individual worth. )> Our success will be measured by the confidence, support, sense of security and well-being of 0U1' community. I I I ~I I II I MESSAGE FROM THE CHIEF o I I I I I I I I I I I In 2005, the department was excited by the decision oftbe OovemiDg Boant to build our new police facility at the pic-sbaped comer of North Road and Lake Drive. The location of our police department is a highly vistble area more centrally located for the cities we serve. I am grateful to all our cities' City Administrators, Mayors aDd Couneilmmrtbers for their leadership with all that was involved wi1h Betting this buiJdiDg built I waDt to especially thank Cilcle Pines City Administrator Tun Keinath for all the work he accomplished with his staft mayor and council to obtain clearance on this land which bad complicated ownership issues. Administrator KeiDatb. bad to worlt through many title and land control issues with this property and I was impressed with his ability and determination to make this property work for 0lU' police department The entire year of 2005 was a whirlwind of activity which meant at least three meetings a week to coordinate buildiDg issues. All of the department's employees were involved in some capacity with the buiJ~ but I especially want to thank the members of the Building Committee: Inv-tiptor Russ Blanck, Captain Ron NelaoDs J\dmini!llt8tive Assistant Cindy Lewis, and Patrol Sergeants Pat Aldrich and B.l. Stepan; who took on additional tasks beyond their day to day police assignments. Russ Blanck was the "Bo-to guy" for most of the issues reJated to the building. To appreciate InvPJdiptor Blanck's work you have to view the three large 3 ring binder notebooks which contain hundreds of memoes, e-mails and notes concemiDg the building. As Russ bas commented many times, "This building project has become a labor of love". TbaDks Russ, I am proud of your commitment and accomplisbments on this building. I want to tb8nk the entire department for their efforts during the move to our new building. As the Building Committee worked on the building issues; the clerical staft: community service officers and patrol officers did a great job providing excellent service to our citizens. We started our move into the new building in early January 2006 and we continue to make corrections and adjustments as we go. You will be impressed with the technology and the safety afforded by our new building. The department lost three officers in 2005. Joseph Dick and Colby Bragg went to the St Paul Police DepaJtment and Dale Bernardy to the Blaine Police Department. Two Community Service Officers were also hired by other police departmeDts. Matthew Noren was hired by Fridley PD as an Officer and Brad Remy went to Cottage Grove PD as a CSOlParamedic. Although it was hard to see these ofticcn leave, we are excited about addi~g three new officers: Andy Dixon. Bill Jacobson and Aron ~ In our clerical and records DI8D8geIIlent area, Susan Bakke was a 'WOIIder:fbl replacement for Joy Ilammer, who retired. Each of our DeW employees offers unique sIdUs, abilities aud eIl1'JMiasm to better our police depertmcm. As you have read - people make orpDizations - and I am proud of the talents of each person in this Police DepeItment. - I I I c IOMMAND STRUCTURE FOR 2005 I II I 11 I I I I I I I I I I I - CeDteDDial Lakes JOiDt Police GoveraiDI Board I Operatiag COlDmittee I Dief I I Administrative SeraeaDt I Patrol AdlDinistntive Seraeants AssistaDt I Patrol Reeords omeen TeehDidaD COlDlDunity I Serviee IDvestigator Reserve oman Data EDtry OfIieen Clerks I CutodiaD I I P I ERSONNEL s II I I I il 2005 GOVERNING BOARD MEMBERS I c_~ Mary Capra CireIe PiHs: Keith Per1ich .........: Don Valenta Tom Lee Phil K.orst Betty Bailey I CENTENNIAL LAKES POUCE DEPARTMENT STAPF I NA)fI 'I'I'lY SERVING J'ROtf I Robert Makela Chief 06-24-85 Ronald Nelson Admiuistrative Sergeant 01-02-89 Cindy Lewis AdmiDistrative Assistant 11-27-90 I Todd Frudel Patrol Officer 06-24-96 Jon KnIeger Patrol Officer 06-15-97 Nancy Noren Records Teclmician 03-30-98 I Russell Blanck InvestigatorIDA.R.E. 09-01-98 Dale Bemardy Patrol Officer 01-05-99 to 01-05-06 Patrick Aldrich Sergeant 03-17-99 I Benjamin Stepan Sergeant 06-28-00 Matthew Noren Community Service Officer 12-11-00 to 02-18-05 Colby Bragg Patrol Officer 11-05-01 to 10-25-05 I Aaron Dixon Part Tune Custodian 05-24-02 Jason Corlew Patrol Officer 08-05-02 Scott Arntzen Patrol Officer 09-23-02 I Joseph Dick Patrol Officer 01-12-04 to 04-01-05 Bradley Remy Comm1mity Service Officer 04-04-04 to 12-23-05 Kristofer Carlson Patrol Officer 04-19-04 I Terri Nelson Part Tunc Data Entry Clerk 05-19-04 Daniel Gates Patrol Officer 10-04-04 I Matthew Langrect Patrol Officer 11-01-04 Andrew Dixon Patrol Officer 01-03-05 Susan Bakke Part Tunc Data Entry Clerk 02-22-05 William Jacobson Patrol Officer 09-12-05 I I I I I I I I I I I I I I I I I I I LEXINGTON CITY ATTORNEY Kurt Glaser 250 Wyman Boulevard 331 North 2nd Avenue Minneapolis, MN 55401 Phone: 612-333-6513 CIRCLE PINES CITY ATTORNEY Steve Burstein 510 First Avenue North Suite 610 Minneapolis, MN 55403 Phone: 612-339-6561 CENTERVILLE CITY ATTORNEY James Hoeft 200 Coon Rapids Boulevard Suite #400 Coon Rapids, MN 55433 Phone: 763-783-5122 5 I I I I ,I I I I I I I I I I I I F Oaiel Robert Makela 2005 OPERATING COSTS BY CITY I 77~76 S122,13. 533,116 Cirde Pia. 2005 REVENUES BY CITY 1 Total Circle Pill. 33,142 33,523 S66,665 - - ",c _ ~ ".,~.." ,~ ) _ . - . '" ~. .. ~~ '".)" I ': 4~ ~~ t....~ ,~ " . - --~--- ----- -~-~ il i II A CTIVITY AND INCIDENT REPORT 2005 I s I 'I CLASS 1 CRIMES Da 1It4 ~ Homicide 0 0 0 I Forcible Rape 2 0 1 Robbery 2 1 3 Aggravated Assault 1 9 6 I Burglary 30 25 21 LarcenylIbeft 138 181 214 I Motor Vehicle Theft 12 22 13 Arson --1 ---1 --1 Total 186 239 259 I I I CLASS n CRIMES am 1It4 ~ Other Assault 51 56 42 I Disorderly Conduct 11 18 51 DUI 154 104 103 Embezzlement 0 0 0 I Family/Children 0 4 2 Forgery/Counterfeiting 12 14 6 Fraud 2 14 12 I Gambling 0 0 0 Liquor Laws 24 10 50 Narcotics 61 46 55 ,I Prostitution 0 1 0 Sex Offenses 8 12 10 Stolen Property 4 6 3 :1 V 8P'dAliSJtl 165 120 161 Weapons 2 3 5 Other Class n Off~ ~ m ill ...-....., .,00 O.,c c.,., -- -- ------ ------ :1 I ACI1VITY AND IN~I;NT REPORT I Continued I MDeelkneoUl OfI'eIIIeI ~ ~ 200} I Alarms 289 266 283 Animal Bites 7 6 14 I Animal CompIaintslAnimalIrnpounW 339 319 387 Assist to Other Department! Agencies 604 645 677 DeathslSuicideslSuicide Attempts 15 21 22 I Domestics 258 265 268 Follow Up Cases 619 705 577 Found Bicycle 47 63 56 I Found PersonIAnimalIProperty 70 64 88 House CheckslExtra Patrol 164 143 237 I Lock-Outs 245 234 261 Lost Person! AnimalIProperty 74 66 54 Medicals 290 268 301 I Noise Complaints 137 157 193 Open DoorlWmdow 540 605 474 Ordinance Violations 309 287 131 I Permit to PurcbaselCarry Firearm 55 64 71 Public Assists 1163 1211 1323 I Suspicious PersoDIV ehicle/Other 1233 1133 1015 Warrant Arrest! Attempt 132 142 136 Other Miscellaneous Offenses 1467 1618 1476 I I JNClVENTS/A~ rER CITY I ~ HI! ~ II 4433 I CENTERvnLE 5155 4626 II CIRCLE PINES 5866 5300 5384 LEXINGTON 5199 5122 4707 l- OUT OF AREA 791 878 866 I 'I 'I I I I I I I I I I I I I I A LCOHOL AND TOBACCO COMPLIANCE In 2005 the Centennial Lakes Police Department conducted two alcohol compliance checks of all licensed alcohol establishments in the cities of Centerville, Circle Pines and Lexington. A total of two businesses failed the compliance checks because. they did not check identification prior to selling alcohol to an underage buyer. Officers have observed an increase in alcohol providers checking identification prior to the sale of alcohol. Officers also noted an increase in identification checb being done prior to the sale of tobacco. Officers completed two tobacco compliance checks of all the licensed tobacco establishments in the three cities. Only one business failed the tobecco compliance checks for the year 2005. We would like to thank all the establishments for continuing in their efforts to keep the youth of Centerville, Circle Pines and Lexington safe and healthy by not seUing alcohol or tobacco to anyone under the legal age limit. ! il II il :1 , 'I I I I I I I I I I I I COMMUNITY ORIENTED POLICING n Community Oriented Policing or C.O.P. is a parbk;.ship created between the police, citizens and businesses designed to detect and deter crime. It was born out of the reali_on that without public assistance, a majority of crime figJrtil\g would remain reactive rather than proactive. Advancements in technology have removed the Patrol Officer from foot patrol, limiting the contact with citizens. Officers in effect become less approacbabIe to the typical citizen. As the divide between officers and citizens increased, both groups became aware of a need for better communication. C.O.P. programs were implemented to nMtaHze the relatioDSbip and reopen Jines of communication. The CentenniaJ Lakes Police Department bas a stroDg commitment to C.O.P. The cities of Circle Pines, Lexington and Centerville are divided into seven pa1IoI areas. Each year, two officers are assigned to one of these areas for the sole pmpose of performing C.O.P. activities. These officers interact with community crime watch prevention groups, participate and assist in organi7.i"8 special events, meetings and forums, and make a special effort to meet citizens and business owners to learn their particular needs. Co..uity OrieBted PoJieiaa Aras (Grids) Our officers are problem solving resources for our communities. They are trained in Community Oriented Policing and are eager to assist with concerns within their assigned grids. Orids are specifically defined areas that the d~tment uses to gather statistics and track problem areas. The following table identifies each grid, its location, and the assigned officers. GRID 1 2 3 4 S LOCATIO~ OFnCERS Aldrich, Corlew Fruetel, Blanck Arntzen ~ Carlson Dixon, Krueger 7 ______1_ 7___1...___ Circle Pines, North of Lake Drive Circle Pines, South of Lake Drive Lexington, North of Lake Drive wiqgtna'\ South of Lake Drive CenterviI1e, North of Main Street ,. I"'t .. ... n. ...... _ ,.....,_~._ n"'.___A I I I II II 'Ihe following are but a few of the C.O.P. projects our officers participated in this past year: I :1 'I I I I I I I I I I I . National Night Out . Safety Camp · Mentor Reading Program (elementary school level and daycare centers) . School Patrol . House checks . Business checks . Curfew sweeps . Public speaking · Metrocount 1mtlic S1D'Vey8 . Tobacco and truancy enforcement . Safe and Sober pattol and related events · Distribution ofbaseba1l and football cards . Police Department tours . Crime Watch meetings . Anti-drug presentations In addition to vehicle patrol, officers 1dili7,ed foot and bicycle patrol (when weather permitted) in areas where both serious as wen as nuisance violations were likely to occur (e.g. parks, playing fields, parades, etc.). C.O.P. is not a new program. Police Departments' re-commitment to Community Oriented Policing philosophies reflects ehsmging times, attitudes, and the overall awareness that crime fighting and the resulting increases in safety and quality of life requires a cooperative effort between the police and the people they protect and serve. The Centennial Lakes Police Department is proud of its C.O.P. efforts to date, and loob forward to additional C.O.P.-related successes in the future. If you bave any suggestions to improve our Community Oriented Policing, please let us know. - i- II I- I II I I I I I I I I I I I I C RIME PREVENTION Crime Prevention is a critical part of our community and involves many aspects of Community Oriented PoHcing to benefit our cities. Neighborhood Crime Watch groups play a big role in assisting our officers with keeping our neighborhoods safe. N.~"" ~iIIl' ~t National Night Out is held on the fb:st Tuesday in August every year. This year our cities had another great turn out. Our officers visited numerous scheduled blocJc parties in Circle Pines, Lexington and Centerville. Residents were able to speak to officers about crime concerns and new events in the community. Bicycle helmets were handed out by officers to remind everyone of the importance of bike safety in our neighborhoods. Coloring boob, pencils, and baseball cards were also haft(led out to children in an effort to promote safety and crime prevention. Nehdaborlaood C....e Watda Neighborhood Crime Watch groups bring neighbors together in hopes of preventing crime in their communities. These orpni7.ed groups watch out for one another. In order to stay active in the Crime Watch orpni7'Jltion these groups must hold meetings twice a year, one ofwbich may be held on National Night Out. We are hoping to add many more of our residents to these Neighborhood Crime Watch groups in 2006. Bievde Lice_II The Centennial Lakes PoHce Depertment urges residents to Hcense their bicycles. These Hcenses are issued at the police department at no cost to residents of Lexington, Circle Pines aud Centerville. This makes the recognition of recovered property easier for the department. Bicycle licenses are a part of crime prevention. Officers and eso's have spent time displaying safety equipment for bicycles and teaching proper band AigPAl~, as well as bicycle laws of the mad. Bicycle helmets have been distributed to children who do not own ODe. i II II il 'I I I I I I I I I I I I I D This year a modified Drug Abuse Resistance Education (D.A.R.E.) program was taught to the fifth grade class at Centerville Elementary School. D.A.R.E. was used to supplement the pelSOD8l safety pI'OJl'8IIl provided by the school district as pert of its health curriculum. The program highlighted the portions of the D.AR.E. curriculum that have proven to be most meaningful to students over the past five years I taught it at Centerville Elementary School. This "best of the D.A.R.E. program" was taught to over 100 fifth grade students. The D.A.R.E. curriculum is life sldlls-based, focusing on, among other things, personal development, good decision-maJnllg, pressures likely to be experienced to use drugs, and pelSOD8l accountability. Students learn about self-esteem, decision- mA1ciqg skills, and the value of parental trust. Heavy emphasis is placed upon recognizing and accepting the consequences of their decisions. This year students were again given the opportunity to view, up close, an exhibition "crash" vehicle. Students were provided a first hand view of the consequences of driving while under the iDfluence. Judging by the students' comments during the preseotation, this segment was quite an eye opener. Additionally, students were visited by a panel of high school."role models" who explained to the students how they were able to avoid the daD&ers of drugs while still having a full participatory school experience with friends of a like mind. The students also received training regarding the scourge of methamphetamine and were visited by the Minnesota State Patrol helicopter. The value of the DAR.E. program, even if it helps but a single child to avoid chug activity, cannot be overstated. I am proud to have again served as the department's DAR.E. officer. I ,I I I I I I I I I I I I I ,I il i_ FIREARMS Most members of the public are likely unaware the the Minnesota Police Officer Standards and Training Board (POST). the entity that sets the guidelines for. among other tb.iDgs. police ot1ier traini,,& ODly requires licensed police officers to qualify once per year with their duty weapons. Our department has always exceeded this minimum requirement. and 2005 was no exception. In fact, 2005 can be best characterized as a ~gressive" year for the department's firearms program. In 2005 the firearms instructors focused on a new one-on-one training program developed at the end of 2004. The program emphasi2zd the dynamic nature of Jaw enforcement- related shooting encounters, moving away from the traditional static firing position approach, and focusing on shooting while moving. The movement emphasized included enpgjng surprise rapidly approaching threats in confined spaces such as smal1 rooms and hallways in houses and apartments. The program was popular with the officers not only because of additional training time, but because of the individullllRd attention. The firearms instructors were also able to view officers' weapons handling skills and shooting abilities and provided focused training and commentary. This training was also "budget friendly" as it was only held on "open range" days - flee all day access days to the outdoor range maintained by Anoka County for the benefit of all agencies in the county. Officers again attended the annual Gamma Shoot, a "shoot-no shoot" decision-mAlnng focused interactive video live fire qualification ~ and the annual Low Light/Adverse Weather Shoots offered through the consortium of Anoka County law enforcement agencies and their firearms instructors. Officers also attended a department-issued squad rifle shoot. Officers were also encouraged to practice their firearms skills at the designated "open range" dates. As an incentive to officers to practice their firearms skills at the open range dates on their own time the department offered department ammunition for use as well as the attendance of a department firearms instructor. In 2005 the department continued to emp~ 1raiDing in responding to "active shooters" in general, and at schools in particular. Officers attended a training session sponsored by the Lino Lakes Police Department at the CenteDDial Middle School in the spring &lid a similar training for both departments sponsored by us at the Centervi1le Elementary School in the 00. 1--- I II I II i II I I I I I I I I I I I I --_._-~.---- F LEET Officer Scott Arntzen For the year eDd of 2005 the Centennial Lakes Police Department owned eight marked squads and three unmarked squads. Throughout the year we added two 2005 Crown Victorias, which were purchased in March. The 2002 Chevrolet Impala was removed from the fleet due to an accident The following surnnun'Y gives an overall record of the JNi~ perfonned for the year 2005 and also gives an explanation for each vehicle. The overall services for all the squads included 10 front brake jobs, 2 rear brake jobs, 34 tires, 8 batteries, and 58 oil changes. There were also several squads that had suspension and/or electrical components replaced. The ~ority of the brake jobs and suspension work was performed on the Dodges. Squad #104 - 2004 Dodge Intrepid: Fully marked squad used in daily patrol. This vehicle was driven approximately 29,000 miles. The vehicle bad a total of 9 oil changes, 4 tires, 3 front brake jobs, 1 rear brake job, 1 battery, and suspension work. The vehicle was also involved in two minor accidents which required body repair. Squad #204 - 2004 Dodge Intrepid: Fully marked squad used in daily patrol. This vehicle was driven approximately 30,000 miles. The vehicle bad a total of 8 oil changes, 1 battery, 4 tires, 2 front brake jobs, and some electrical work. Squad #304 - 2004 Dodge Intrepid: Fully marked squad used in daily patrol. This vehicle was driven approximately 27,000 miles. The vehicle had a total of 8 oil changes, 1 front brake job, 1 rear brake job, 4 tires, 1 battery, and some electrical work. The vehicle also had some body work: done due to an accident involving a deer. Squad #504 - 2004 Chevrolet Impala: Fully marked squad used in daily patrol. This vehicle was driven approximately 22,000 miles. The vehicle bad 7 oil changes, 6 tires, and I battery. Squad #P2 - 2002 Chevrolet I~"': This vehicle was a tbIIy marked squad which has been removed from the fleet due to an accident. The vehicle was driven approximately 18,000 miles. The vehicle had a total of 4 tires, 4 oil clumges, 2 front brake jobs, some front end work and a new engine that was covered by warranty. I I I I II I I I I I I I I I I I I Squad #205 - 2005 Ford Crown Victoria: This vehicle was also added to our fleet in March. This is a fuJIy marked squad used in daily patrol. The vehicle was driven approximately 21,000 miles. The vehicle had a total of 6 oil changes and 6 tires. CL-8 -1998 Chevrolet 1(1500: Fully marked vehicle used by the Community Service Officer. This vehicle is also used for patrol in inclement weather. The vehicle was driven approximately 15,000 miles. The vehicle bad a total of 3 oll changes, 1 &ont brake job, 1 battery, and some engine work done. P9 - 1994 Jeep Cherokee: This vehicle is unmarked and has been assigned to the Investigator. This vehicle is also used in pa1m1 during inclement weather and for special details. The miI~e is unknown and the only repair was I battery. CL-IO - 2002 Chevrolet Tahoe: This unmarked vehicle has been assigned to the Chief of Police and used for special activities and pa1m1 during inclement weather. The vehicle was driven approximately 11,000 miles and had a tota1 of 3 oll changes, I battery, I front brake job, and I rear brake job. PI 1 - Chrysler 300M: This 1IDIIUltked vehicle has been assigned to the Administrative Sergeant and is also used in patrol for special details. The vehicle was driven 10,000 miles and bad a total of 4 oil changes. P4 - Ford Crown Victoria: This fully marked vehicle has been assigned to the Reserves and is also used in special activities. The vehicle was driven approximately 2,000 miles and had a total of21ires, 1 oil change, 1 battery and a new fuel pmnp. Goal for 2006: For 2006 we are hoping to purchase a new Community Service Officer vehicle and two fully madced squads. We are trying to make the marked squad fleet be comprised of only black. and white Ford Crown Victorias, which will help reduce maintenance costs in the future. I I I I II 'I I I I I I I I I I I F ORFEITURES 2005 Officer Todd Fruetel DUI In 200S, the Centermi,.J Lakes Police Oepattment forfeited the following vehicles: 1993 Ford FISO which was sold. 1991 Dodge Stratus which is neariDg auction. 1995 Pontiac Gnmd Prix which was sold. 1988 Plymouth Voyager which was sold. 2004 Chevrolet Colorado which was released to the lien holder. 1993 Chevrolet Corsica which was sold. 1993 Saturn SLl which is injudicial determiuation. 2001 Mitsubishi Mirage which is injudicial determiuation. 1998 Dodge Dakota which was released to the lien holder. 1996 Chevrolet Camaro which was returned to the owner. 1991 Nissan Sentra which is in judicial cletermination. 2002 GMC Sonoma which is injudicial cletermination. 1994 Chevrolet Cavalier which is neariDg auction. 1990 Ford Taurus which is Dearing auction. 2002 OMC Sierra which is nearing auction. 1991 Chevrolet Suburban which was turned over to Uno Lakes PD. 1991 Chevrolet Blazer which was returned to the owner. 1990 Jeep Cherokee which is nearing auction. 2001 Lincoln Navigator which is in judicial cletermination. 1997 C.Adi11SIC Deville which was returned to the owner. 1995 Chevrolet S10 which is nearing auction. 1993 Chevrolet S10 which is nearing auction. 1993 Ford F1S0 which is nearing auction. 1992 Chevrolet 810 which is neariDg auction. The twenty-four forfeitures from this year represent the highest number of vehicles taken in one year. The previous high was eighteen. We now have a gnmd total of 109 vehicles forfeited since July of 1998. CRIMINAL il I. i. .1 I I I I I I I I I .1 II il 51175 for drup which was distributed. 559,347 for drugs which has gone to the IRS for completion. 53,4S6 for drugs which wiD be discributecl foIlowiDg completion of crimiDa1 matter. $381 for drugs which is in judicial determination. 51,017 for drugs which is injudicial determination. BENEFIT TO THE DEPARTMENT Wme vehicles from 1he DUl forfeitures were sold at auction. In order to get the vehicles ready, approximAtely 5850 was spent. The sale of these vehicles resulted in the department receiving S5,966.81. Two dtug forfeitures were started and completed in 2005. The department received 51,116.50. Additiooa1ly, a 1997 C9c1i114C Deville taken in 2004 was sold, resulting in a profit 0151,960. Total money received from forfeitures for 2005 was $9,043.31. I I ,I I II I I I I I I I I I I I I I I NVESTlGATlONS Investigator Russell A. Blanck' The dcpaitment's 200S investigative fimction was multi-faceted. My primary responsibility this put ycar was oveneein& OIl a daily basis, the CODStructi.on of the depertmeot's new facility. My bdgrouud as a retired litigator with significant experieace in die field of eonstn.Jedon made that ~ logical. (See a separate section of this annual .report addressing the new buildi"8) Nonetheless, I continued to tbr1her the department's investigation ftmction by miew:ing officer reports and teletypes as wen as cr:im.inal alerts from other dqNktn.mts to develop "intcUigcqceM directly relevant to our depertmeot's mission. I also taught D.A.R..E. during the first ball of the year. Additionally, when possible, I continued to CODduct interviews of victims, witnesses and suspects, prepare cr:im.inal prosecution charging documents, sign in-custody complaints, prepare affidavits to permit the continued detention of amstees, and cODduct such "special" investigations as directed by ~~, During this timcframc I handled, among other matters, a multi-jurisdictiODBl Jauadromat theft and cr:im.inal dam. to property matter, a significant residential dwelling m matter, a burglary of a church, 8Dd a sawed-oft'shotgun matter. I assisted patrol, bac~ on calls, advising on evideDcc issues, ~"g evidence, and wortiDg uniformed petrol on 24 oecasioos. In 2005 several officers again took advantage of the "on-call investigator program" I initiated in 2001. The program, designed to provide dUection OIl coDStitutional, procedural, charging and evidendmy issues to on-scene ot1icers aDd supervisors, supp1emeDts tbosc services pmvicIed by the CrimiDal Investigations Division of the Anob County Sheriff's Ofticc and the "on-caJl" prosecutor. I was contacted by officers at home cleven times. I also coDducted background investigations of police officer candidates and adminildrative candidates in 2005. Additionally, I CODducted 56 investigations of iDdividuals !IN'!lri11g permits from the department to purchase fin:arms. In addition to the foregoing duties I handled a JIUDlber of admiDistrative projects includiag researching aDd preperiDg the department's "gas drive-oft" procecLnl J*bt, the lC8pODSC to ftltircd ofticen' requests for baDdgun carry permits under newly enacted federal Jaw H.R. 218, a Pursuit Intaventioo TecImiques ("PIT') policy, an tmpIoyee recopition policy, and serving on the ~twmd:.s policy review comqaitfee where I Pttended Dine art;.,. and edited the existing depanmeDt DOlicv manual. I I ,I I :1 I I I I I I I I I I I I In 200S I also continued in my role as the depaalment's public information officer and met with, provided interviews to or otherwise alerted the media through press releases of oewsworthy depBdmeat issues. The~ ftlCeived sipificaDt posi1ive media attention in 200S. I also wrote an issue of the "Revolving Door" column for the QIIod Press addressing warm weatber-re1atecl crimes. AdditiOna1lylO I undertook various other ~4lip"'entsJ ineluding advising mAlU\gement on various legal issues, 1IJi<<t"'I with the city attorneys regarding procedural pmcesses~ serving as a dep&t1meut's liaison to the loc8l school district's Safety aod Security Committee, drafting training updates, presenting at the Anoka County Reserve Officer Academy on the topic of legal issues, analyzing and reporting upon recent case decisions impecdug the work of police ofli~ serving as the department's "Response to Active Shooter" instructor and ove.neeing a department_ spoIISORXl "Active Shootd' exercise, complying with grants, obtainn,g additiODal Tascrsf) amd coordiDa1iDg a department recognition program for the donors who made the acquisition of T~ by the department possible, serving as ODe of the department's firearms iDstructors, and preparing the equitable sbariDg documents ~ to receive a portion of a significant forfeiture offbnds. I I I I I I I I I I I I I I I I M EDICAL Sergeant B.J. Stepan All officers within the Centermj~ Lakes Police Department have, at minimum, a First RespoDde.r level of medical flaining F'JrSt Responder 1J:aining is specifically designed for those in professions which mspond to emergency medical reqursts. The training provided instructs responders in the use of various types of medical equipment; including but not limited to, Automatic BxtemaI Defibrillators (AED), oxygen equipment and management, b1-ti"B control and spine stabilization equipment. Centennial Lakes Police Department prides itself in the level of training aud proficiency of our officers in response to medical emergencies. For the year 2005, officers responded to 292 requests for medical _stance. AEDs are a specific device Iltili7.ed only in cases of cardiac arrest. Prior to the introduction of AEDs into emergency medicine, survival rate of unconscious victims of cardiac arrest was less tban 10%. In 2005 officers used the AIDs four times on victims of cantiac arrest. Two of those victims are alive today because of AED use and quick response BDd recognition of the emergency by officers. Four officers were presented with Life Saver awards for their work on these incidents. Lexington Fire Department's Chief Paul Pechan was also presented a Life Saver award for his assistance on one of the incidents. Our officers also recognize the support and assistaDce of the CentJ!nnial Fire Department, the Lexington Fire Department aDd, of course, North Ambulance and AIIiDa Ambulance Services. We are proud of the incredible work done by these agencies and we are always striving to improve the service provided to our communities. I I II I :1 i II I I I I I I I I I ,I I N EWDEPARTMENTFACILITY Investigator RusseU A. Blanck A sigDifi~ if not the most sigoificant event for the department in 2005 Was the CODSttuction ofits new home. Located at the comer of Late Drive aud North Road in Circle Pines, the DeW police department facility, a sinsle story, 12,500 square foot structure, ~ the cumulative eftOrt and mion of ID8Il)' people over a several year period. To say that buildi", the DeW facility was a "team effort" would be an undentattment of epic proportions. Beginni", in January and extending tIuougbout the entire year, a core group of individuals 'WOrbcl tirelessly to dot fNfIrJ "i" and cross fNfIrJ "t" in the CODSttuction proc:css. In addition to the professioaals raaiDcd for the project, Circle Pines City Manager Jim KeiDath and departmeat penoDD.el including Chief Makela. Captain Nelson, AdminildrBtive AssiJtsmt Cindy Lewis aDd I met weekly, aDd often more Iiequeotly, ~ tbe CODStruction. City Manager Keinath deserves special mention for his leadership and expertise. The new building is state-of-the-art and includes, among other 1hiDgs, a large trainiDglmeetiD& room that will also serve as an operations center duriDg emergeocies, an expanded squad room for 1he officers, a break room, separate men's aDd women's locker rooms and sbowa:s, a fitness room, a gun armory, on-site evidence and property m:as, a smaIJ confen:nceImeeting mom, adminis1rative offices, a unisex as weB as separate men's and women's R'ISfroomS, a wort room. and a detention facility contAini", two cells, a day room, two interview rooms and a space for the Intoxilyzer instrument used in ~i"l DWI's. The buildi. is winxI for SOUDd throughout to receive calls from dispatch and is equipped with motion activated digi1al cameras. The cameras are capable ofbeiDg monitored from every computer in the building. One of the more appreciated features of the building is its en~ security for department personnel. The building bas defined secure zones including a fenced parking lot and a garage capable of holding six squad cars. The garage also serves as a sally port - a secure area for the 1raDsfer of dtonilV'U to and from the detention facility. I apprecjate the confidmce vested in me by Chief Mab1a by desipati.. me as the department member teSpODSible for the day-to-day issues during the CODS1n1Ction process. It was a full-time job and then some. However, as is often said, "the devil is in the detaiIs," 8Dd the abeeDce of any sigJ'ifi...-t problems upon completion of the CODSttuction Dllkes the effort exerted that much more rewarding. ~ ~ ~ ~_least, I o~ ~ ~ ~ ~ties of~~ Circle ~~ I I I I I II I I I I I I I I I I P OUCE RESERVES Officer Jason Corlew This year was, once again, a year of change for the Reserves. I would like to highlight the Reserves that have made this program a success. Reserve Officer Karen Miller has been a pillar of the Reserve Unit. Reserve Officer Miller has put in countless bours assisting the police officers of our department aod always has a positive attitude wbile carrying out the duties of a reserve officer. Due to her great orpni7Ation and leadership, we have a successful reserve unit. Reserve Officer Bill Jacobson has also put countless bours into serviDg his community aod the department. Reserve Officer Jacobson was recently hired as a police officer with this department and is a great addition to 0lU'depu1ment. Reserve Officer Aron Sandmar4p has been a long-time resident of Circle Pines and bas taken an interest in serving the community he lives in; he was hired as a police officer with this department shortly after he started training with our reserve program. He, too, is a great addition to the department. Reserve Officer MoDique Sahlstrom bas always been 'just a phone call away" from assisting any of our officers. She enjoys riding along with and assisting all of the officers and staff of this department. I have asked Officer Matthew Langreck to assist me with the running of the reserve program this year. Officer Langreck is a great addition to the program and bas brought with him new ideas for training and operating the unit. Our focus over the last year was to train reserve officers to better serve the police officers and the residents of this community. To do this, I have asked each reserve officer to commit one night a month for training. Each meeting we hold bas a selected topic. Officers from the department teach the classes, that way each officer has a chance to share their specialty with the reserves. The Reserve Unit has contributed a total of 798 hours to the department in the following areas: Reserve activities: . Ride alongs with pa1rol officers · Inventorying of vehicles, securing crime scenes, assisting officers in day-to- day activities . Patrol of neighborhoods and parks . Checking homes and businesses . Assisting with Patrol Officer candidate interviews _ .. __:~__ _... A_ n.....t:__ ~___~__... _....-.a.:__ I I I 'I II il I I I I I I I I I I p REDATORY OFFENDER REGISTRY Officer Aron Sandmann Officer Bill Jacobson The Predatory Otfender Registry (POR) is maitWUned by the ~i~ Bureau of Criminal Appnmension (DCA). The registry was created to monitor predatory offenders in the state of Minnesota. Predatory offenders are pbu:ed into categories retmed to by the DCA as Level I, Level U, and Level m. Level I otTeoders ate conside.red least likely to re-otfend. Level m offenden are considered most likely to re-otTend. The Ccn~iaI Lakes Police Department JDODiton the individuals raiding within Ceutmille, Circle Pio.es. aucI Lexiaatcm who ate listecl on. the Predatory Offeo.der Registry. The list of registered predatory offenders residing in our communities is updated montbly. At any given time, there are approximately twenty-five offenders residing within the three cities. This number is fluid as offenders are constandy moving in and out of our cities. In addition to monthly updates, officers made tine contacts during 200S with each offeoder at their registered address to verify that the offenden were in compliance with the state's fe&istration requirements. The Centennial Lakes Police Department will continue to keep a current list of the predatory offeoders living in our jurisdiction and continue to make contact with the offenders at their registered addresses to verify that the offenders are compliant. il i. I I I I I I I I I I I I I I - s AFE AND SOBER Sergeant Pat Aldrich During the year 2005, the Centennial Lakes Police Department c:ompleted the second of a two year grant awarded by MiDnesota Safe and Sober. Our c:lepertment joined nine other agencies ftom Anoka County who 'Wa'C awarded a cnnt for a total of $60,000 for the two years. Many of the scheduled dates of enforcement were planned around the holidays. During the enforcement periods our officers were required to focus on five areas of ~ which were spearheaded by the Safe and Sober initiative. Those areas were: . Aggressive driving . Impaired chiving · The "Not a Drop" law, which focused on underage drinkers . Seatbelt enforcement . Inattentive driving The overtime shifts were four hours in length. The start times of the shift would depend on which area of concern was targeted. Officers workiDg a seatbelt enforcement shift would normally work during high traftic times of the day. An officer working an impaired driving enforcement shift would usually start at 11:00 p.m. and WOJk until 3:00 am. In 2005 offieers worked a total of 47 Safe and Sober hours. Officers made 129 traffic stops during those 10 shifts. We recorded 85 citations and 3 DWI arrests. Officers also issued in excess of ISO traffic warnings. Officers also participated in the May and November seatbelt mobilizatioDS. In May our officers cited 203 occupatlts for seatbelt violations. That astronomical total was recorded as the sixth bighest total for any reporting department in the state. In 2005 the Ceotemdal Lakes Police Department also joiDed with the Minnesnta State Patrol on several overtime waves throughout the county. The waves were held in several jurisdictions of the participating agencies. Officer Fruetel, on two separate Operation Nightcap shifts, achieved the "bat trick" award. He bad 3 DWI arrests during each of those two shifts. With the statistics shown, our officers once again did a tremendous job enforciDg the Safe and Sober initiatives. With the continued leadasbip, along with the new youth and enthus1,tnn of officers, our efforts show how important traftlc safety is to our communities. I I I I I I I I I I I I I ,I I I I ~ PEEDENFORCEMENTANDRADAR In 2005 the department continued its aggressive aDd proactive approach to reduciDg ~. on the snets of Centerville, Circle Pines and Lexington. This campaign .-in. ~ilJg motorists is ma"-irted to increase safety and reduce vehicle accidents on our roads. Stops iDitiatecl for speed not only led to ~i. eitati.oDs. but also resulted in citations being issued for driving without a valid driver's license violatioDs, insurance vioIati~ drug and weapons charges, and warrant arrests. In 2005 0WemUaJ Lakes police officers issued a total of637 citations for ~.. 'Ibis total reflects a 76 percent inaase in such citations from 2004. This total does not incIude situations wJ1en, the origiDal reason for the traffic stop was speed but other more significant violations were ~1.11y charged. Officers reacted to public input by directing speed enforcement in areas that were deemed problem spots by residents. Officers also maintailJed a high visibility in school zones when students were coming to aDd ftom school in an attempt to help avoid any traffic- related incidents resu1tiDg from sp-o-ding or reckless motorists. The Centennial Lakes Police Department utili7M two new state of the art "Stalker" dash- mounted radar units in their enforcement efforts. 1bis new technology helps officers perform with more accuracy aDd precision when attempting to single out a certain violator from a large group of traffic. Two additional new radar units will be added in early 2006. The majority of the Centennial Lakes Police fleet continues to use older, but still functional, radar technology. Officers also have at their disposal a baDd-held speed measuring laser device. I II I !I I I I I I I I I I I I I I I T RAINING Sergeant Pat Aldric1r Providing high quality and cost-effective training for the Centennial Lakes Police pc:I8ODIIel COJdinued to be a high priority in 2005. ProfessiODBl training benefits the officers, the cIepartmaJt. aod tile cnaJlft)\JIIities in which. we sene. 'lbe depetllWDt benefits by having well-trained police officers, minimi~ depeItmeDt liability. The commUDi1ies also reali2e the benefits of having officers who have a we1l-rouDded bese ofknow1edge and experience in a variety of are8S. 1be M~ State Peace Officers StaDdards aud Training Board (p.O.S.T.) aDd the federal government through the Occupational Safety aDd Heal1h Administration (OSHA), continue to place additioDal training lIIIIDdates on law ~ Our department continues to identify aDd use its resources to accomplish comp1iaDce with these staDdards. DuriDg 2005, officers continued to utilize Mdaily tniniug". DuriDg each duty shift, officers are required to complete a topic -"red for that day. MOlt of the seheduled training topics could be considered "high riskIlow hquency" evads. This training allows officers to reftesh their knowledge and Jeview proper procedures to be prepared for intiequent. events. Many m~ated information requirements are covered with the daily training propam. With this program we continue to add additional topics as our legislators continue to pass laws that are extremely complicated, unfunded, and have very little guidance regarding proper criminal pmcedure for ot1icers to foUow. In 2005 this depertment teamed with Lino Lakes Police Department on two occasions for seeaario-based active shooter training. The training sessions were held at elementary schools and allowed citizens to act as role players. Simulated ammunition was used to create more realistic situations. The foUowing is alist of msmd.tM topics and professional training courses attlmded by our officers during 2005: I ' LEGAL County Attomey Update Media Relatioos DWI & Traffic Safety Laws USE OF FORCE :1 I II I II I I I I I I I I I I I I I · Providing security and tratJic control at Fete de Lacs fireworks display, parade, and street dance · Meintaiftillg records of Reserve duty hours and assignment information · Attending unit meetings and trAiniT · Attending National Night Out gatherings · Providing security and community policing at Centerville's Halloween events Completed Training: . CPR and AED training . Use of Force training/Handcu and Searching . Blood Borne Pathogens training . Vehicle Inventory training . Department Policy traioiag Joint Duties with other Anoka County Departments: . Traftic and crowd con1rol · Wargo Nature Center Search and Rescue training . Anob County Fair . Anoka ColUlty Halloween event ,I I I I I I I I I I I I I I I I I Dynamic Movement Shoot Taseae RecertificaDon Tasete Familiarization and Deployment SPECIALTY Field Training Officer FrO Schoo) Basic Radar Intoxilyzer SOOO lntoxi1yzer SOOO Refresher Criminal Justice Institute StaDdardized Field Sobriety Tests Management Skills for New Managers ~ SkiJIa for New Managers Leadership Academy Predatory Offender RespoDSe Edged Weapons IDstructor Use of Force IDstructor First Responder Rehsher First Aid F.uentials EM! Refresher Safety and Loss Control Advanced Police Driving Predatory 0tfeDder Respoase Safe and Sober Conference Commercial Vehicle IDspector ShuttiDg Off'tbe Tap to Juveailes FBINAA I I I I I I I I I I I I I I I I U SE OF FORCE Officer Jon Krueger Officer Jason Corlew During the year of 2005 we continued to provide the best Use of Force training we could to our officers. Our officers completed five different shoot traiDiDg sessions. All of the shoots ,tteoded wae very eclucatioual aDd received positive fcecIbeck Dom attendees. We continued to train in our local elementary schools with Response to Active Shooters 1r&ini1lg Officers also received an eight hour training that included bandcuffing. impact weapons, chemical irritants, weapons retention, edged weapon defense, baDd to hand combBt aDd take doWDS. Officers received two hours of Tasert) n:&esher traini.._ Tasers were implemented in 2004 as 8DOtbcr tool to combat uncoopcntive subjects. During the year 2005, officers from our department used their Tasers in fifteen incidads involving use of force situatioDs. Of these fifteen cases, the Tased was actuaUy deployed in three cases and merely pointed at the subject in the other twelve cases. The Taserf) bas been a very useful tool &ad bas helped officers apprehend tlnat....~og subjects without ~ng substaDtial harm to the subject or the officer. The following Use of Force. aDd Firearms traininp were attended by officers during 2005: March 2005 Gamma Shoot conducted at the Anoka City indoor range. Gamma is an interactive training where scenarios are projected onto Q JKlPf1f' screen. The officer ImISt interact with the sCDlllrio, making life tmd death decisions whether to shoot or not shoot. The officer's actions influence the sce1lllrio's ending. May - October 2005 DepIrIment "Dynamic Movement" shoot at the Anob County outdoor nmge. This training was conducted individually with each ojJlcer by 0U1' depw'l1nent'S jireQl'1flS i1lStrllCtors Oft open range dates. It provided traim"" for firimT fro", different rJOSitions while 1IJOlIImt tmd included I il I I I I I I I I I I I 'I I I May - November 2005 Use of Force 1raiDiDa at ACLET. This training was conducted with other members oflaw etiforcement in Anoka Cotmty. This eight hour course covered handcrd/ing techniques, weapon retention, baton strika, chemical irritant dep/oylMnt, taIrs downs, and htmd-to-hand colllbot. The day of training conclllded with four hours of scenario-ba8ed training with sirmmitions (shooting parafin/paint bullets during live scenarios). July - August 2005 Department Shoot at Anob County outdoor range. This training covered SMG (stpItId rifle) and officer's sidearm qwliflcatio1L It involved shooting moving targets, WIl[J01I transition. seated firing, impaired vision shooting, and malfimction drills. August 2005 Rcspoose to Active Shooter 1raiDiDa CODductcd at Ccnterville Elementary School. This training war COOl'dinoted with the Lino LoItes Police Deportment and involved 30-35 ojJicers, several role players, and a few school stIljf members. Active Shooter I1'Ilinillg is designed to instruct on the schooll1nlshress shooting incidents where a shooter i3 actively killing innocent people tmd officers respond in a small team to stop the threat. During this training. oJIkers fired over 500 rounds while deploying 10 handguns and 3 rifles. October - December 2005 T&Sae Rdiesher training CODductcd at our depertment. Training oJlicers conducted two hours ofT.ere deployment training. Every patrol officer with this department carries a Tasere while on duty. Trtlining included a written test, deploying two Cllrtridges at a target and law updates. :1 II il I I I I I I I I I I I I !I November - December 2005 N.ptIIuclanent Weather Shoot at the Anob County outdoor rarJge. This training was coordinated with all Anoka County agencies and was completed at night. 0jJicers fired 50 P'OII1Itb from various distances with the use of a flashlight. It also covered shooting with the off hand IIIIflIlSing gloves. During the year of 2005, firearms instructors cleaned and maintAined six SMG's (squad rifles) and inspected officers' weapons. We look forward to AMi. new training equipment and another instructor in 2006 8Dd wiD c:ontinue to 1nIin our officers to the best of our abiliti.es. ABDO EICK & , MEYERSILP CertifleJ. Puhltc Aammtants & Consultonts May 4, 2006 Grandview Square 5201 Eden Avenue Suite 370 Edina. MN 55436 Honorable Mayor and Council City of Centerville, Minnesota We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund infonnation of the City of Centerville, Minnesota (the City) for the year ended December 31,2005 and have issued our report thereon dated May 4, 2006. Professional standards require that we provide you with the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with accounting principles generally accepted in the United States of America. Because an audit is designed to provide reasonable, but not absolute, assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, fraud or illegal acts may exist and not be detected by us. In planning and perfonning our audit of the financial statements of the City, for the year ended December 31, 2005, we considered its internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control. However, we noted certain matters involving the internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of internal control that, in our judgment, could adversely affect the City's ability to record, process, sunnnarize, and report financial data consistent with the assertions ofmanagernent in the financial statements. We noted the following reportable condition: Segregation of Duties Our study and evaluation disclosed that because of the limited size of your office staff, the City has limited segregation of duties. A good internal control structure contemplates and adequate segregation of duties so that no one individual handles transactions from inception to completion. While we recognize that the City is not large enough to permit an adequate segregation of duties in all respects, it is important that you be aware oftbis reportable condition. Management Response Management has implemented specific internal control policies to address segregation of duties issues. The City Council approved a resolution in 2005 that addressed some areas of1imitation. The City will continue to review its systems annually to try to improve internal controL A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com II I City of Centerville May 4, 2006 Page Two Our consideration of internal control would not necessarily disclose all matters in internal control that might be reportable conditions and, accordingly, wot1ld not necessarily disclose all reportable conditions that are also considered to be material . weaknesses as defined above. However, the reportable condition described above is not believed to be a material weakness. 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 laws, regulations, contracts and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. We noted one instance of non-compliance with Minnesota statutes. Broker Certifications Minnesota statute 118.A04 subdivision 9, requires the City to obtain broker certification from investment brokers annually. The 2005 broker certifications were not completed. Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City are described in Note I to the fInancial statements. The City implemented the requirements of GASB Statement No. 40 - Deposit and Investment Risk Disclosures - an amendment of GASB Statement No.3 during 2005. We noted no transactions entered into by the City during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates 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 signfficance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most significant estimate affecting the financial statements were capital asset basis and depreciation on capital assets. Management's estimate of depreciation is based on estimated useful lives of the assets. Management's estimated historical cost is based on current replacement cost deflated to the year acquired. We eval!l8ted the key factors and assumptions used to develop this estimate in detennining that it is reasonable in relation to the financial statements taken as a whole. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com 11 City of Centervi.lle May 4, 2006 Page Three Audit Adjustments For purposes of this letter, professional standards define an audit adjustment as a proposed correction of the financial statements that, in our judgment, may not have been detected except through our auditing procedures. An audit adjustment mayor may not indicate matteIs that could have a significant effect on the City's financial reporting process (that is, cause future financial statements to be materially misstated). In total, we proposed 61 journal entries. The entries we would consider audit entries are listed below. The remaining entries would be considered year end accounting entries. Both series of entries are generally considered the responsibility of the City to prepare. The City will get more accurate and more timely information if the number of journal entries is reduced. We bad no uncorrected misstatements. Adjusting Journal Entries JE # 5 Debit Credit To correct mva adjustment entry 101-49200-36210 Interest Earnings $ 3,382.00 306-49200-36210 InterestEamings 44.00 308-49200-36210 Interest Earnings 77.00 312-49200-36210 Interest Earnings 865.00 327-49200-36210 Interest Earnings 1,238.00 336-49200-36210 Interest Earnings 294.00 342-49200-36210 Interest Earnings 1,685.00 345-49200-36210 Interest Earnings 1,277.00 346-49200-36210 Interest Earnings 1,096.00 402-49200-36210 Interest Earnings 672.00 412-49200-36210 Interest Earnings 269.00 415-49200-36210 Interest Earnings 456.00 446-49200-36210 Interest Earnings 137.00 601-49200-36210 Interest Earnings 721.00 602-49200-36210 Interest Earnings 114.00 602-49200-36210 Interest Earnings 3,983.00 101-10111 Fair Value Adjustments $ 3,382.00 306-10111 Fair Value Adjustment 44.00 308-tO 111 Fair Value Adjustment 77.00 312-10111 Fair Value Adjustments 865.00 327-10111 Fair Value Adjustments 1,238.00 336-10111 Fair Value Adjustments 294.00 342-10111 Fair Value Adjustments 1,685.00 345-10111 Fair Value Adjustments 1,277.00 346-10111 Fair Value Adjustments 1,096.00 402-1011 1 Fair Value Adjustments 672.00 412-10111 Fair Value Adjustments 269.00 415-10111 Fair Value Adjustments 456.00 446-10111 Fair Value Adjustments 137.00 601-10111 Fair Value Adjustments 721.00 602-10111 Fair Value Adjustments 114.00 602-10111 Fair Value Adjustments 3,983.00 Total S 16,310.00 S 16,310.00 952.835.9090 . Fax 952.835.8261 www.aemcpas.com I City of Centerville M,_" May 4, 2006 Page Four Adjusting Journal Entries JE # 12 Debit Credit To record addl utility receivables 415-11500 Accounts Receivable $ 910.00 601-11500 Accounts Receivable 5,556.00 602-11500 Accounts Receivable 9,628.00 415-43000-34000 Chrgs for Servo Drain $ 910.00 601-49400-37100 Water Sales 5,556.00 602-43200-37200 Sewer Sales 9,628.00 Total S 16,094.00 $ 16,094.00 Adjusting Journal Entries JE # 13 To correct accrued interest 101-49200-36210 Interest Earnings $ 4,261.00 306-49200-36210 Interest Earnings 55.00 308-49200-36210 Interest Earnings 98.00 312-49200-36210 Interest Earnings 1,090.00 327-49200-36210 Interest Earnings 1,560.00 336-49200-36210 Interest Earnings 371.00 342-49200-36210 Interest Earnings 2,122.00 345-49200-36210 Interest Earnings 1,609.00 346-49200-36210 Interest Earnings 1,381.00 402-49200-36210 Interest Earnings 847.00 412-49200-36210 Interest Earnings 339.00 415-49200-36210 Interest Earnings 574.00 446-49200-36210 Interest Earnings 173.00 601-49200-36210 Interest Earnings 908.00 602-49200-36210 Interest Earnings 142.00 602-49200-36210 Interest Earnings 5,018.00 101-10450 Interest Receivable on Invest $ 4,261.00 306-10450 Interest Receivable on Invest 55.00 308-10450 Interest Receivable on Invest 98.00 312-10450 Interest Receivable on Invest 1,090.00 327-10450 Interest Receivable on Invest 1,560.00 336-10450 Interest Receivable on Invest 371.00 342-10450 Interest Receivable on Invest 2,122.00 345-10450 Interest Receivable on Invest 1,609.00 346-10450 Interest Receivable on Invest 1,381.00 402-10450 Interest Receivable on Invest 847.00 412-10450 Interest Receivable on Invest 339.00 415-10450 Interest Receivable on Invest 574.00 446-10450 Interest Receivable on Invest 173.00 601-10450 Interest Receivable on Invest 908.00 602-10450 Interest Receivable on Invest 142.00 602-10450 Interest Receivable on Invest 5,018.00 Total S 20,548.00 $ 20,548.00 952.835.9090 . Fax 952.835.3261 www.aemcpas.com 11 City of Centerville May 4, 2006 Page Five Adjusting Journal Entries JE # 14 Debit Credit To adjust AP and due to other governments 101-20200 Accounts Payable $ 22,747.00 101-20802 Due to Other Gov'ts 1,331.00 101-41950-303 Engineering Fees 318.00 101-41950-303 Engineering Fees 1,627.00 101-46200.303 Engineering Fees 9,983.00 317-20802 Due to Other Gov'ts 390.00 412-43140-303 Engineering Fees 118.00 446-41950-303 Engineering Fees 148.00 601-46700-303 Engineering Fees 5,090.00 602-20801 Service Availability Charge 2,871.00 602-49995-303 Engineering Fees 113.00 101-20200 Accounts Payable $ 11,928.00 101-41550-300 Professional Srvs 1,331.00 101-42285-300 Professional Srvs 22,747.00 317-47000-300 Professional Srvs 390.00 412-20200 Accounts Payable 118.00 446-20200 Accounts Payable 148.00 601-20200 Accounts Payable 5,090.00 602-20200 Accounts Payable 113.00 602-20800 State Sales & Use Tax 2,871.00 Total $ 44,736 $ 44,736 Adjusting Journal Entries JE # 15 To reverse 2004 jan settlement 101-22801 Waste Mgmt Fees Payable $ 66 101-49200-31000 General Property Taxes 14,641.00 312-43000-36100 Special Assessments 16,859.00 312-43140-36100 Special Assessments 15,825.00 317-43000-31050 Tax Increments 88.00 325-43000-36100 Special Assessments 262.00 345-43000-36100 Special Assessments 22,407.00 601-49400-36100 Special Assessments 459.00 602-43200-36100 Special Assessments 459.00 101-10500 Taxes Receivable-Current $ 14,707 312-12100 Special Assess Rec-Current 32,684.00 317-10500 Taxes Receivable-Current 88.00 325-12100 Special Assess Rec-Current 262.00 345-12100 Special Assess Rec-Current 22,407.00 601-12100 Special Assess Rec-Current 459.00 602-12100 Special Assess Rec-Current 459.00 Total $ 71,066 S 71,066 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I Adjusting Journal Entries JE # 16 To correct accmed interest allocation 101-10450 Interest Receivable on Invest 306-10450 Interest Receivable on Invest 308-10450 Interest Receivable on Invest 312-10450 Interest Receivable on Invest 317-10450 Interest Receivable on Invest 324-49200-36210 Interest Earnings 325-49200-36210 Interest Earnings 327-10450 Interest Receivable on Invest 336-10450 Interest Receivable on Invest 339-10450 Interest Receivable on Invest 342-10450 Interest Receivable on Invest 345-10450 Interest Receivable on Invest 346-10450 Interest Receivable on Invest 402-10450 Interest Receivable on Invest 412-49200-36210 Interest Earnings 414-49200-36210 Interest Earnings 415-49200-36210 Interest Earnings 438-49200-36210 Interest Earnings 441-49200-36210 Interest Earnings 442-49200-36210 Interest Earnings 443-10450 Interest Receivable on Invest 445-49200-36210 Interest Earnings 446-49200-36210 Interest Earnings 447-10450 Interest Receivable on Invest 601-49200-36210 Interest Earnings 602-10450 Interest Receivable on Invest 614-49200-36210 Interest Earnings Debit $ 1,830.00 6.00 13.00 573.00 18.00 1,106.00 39.00 413.00 19.00 6.00 275.00 1,173.00 1,205.00 169.00 670.00 28.00 199.00 561.00 201.00 205.00 10.00 788.00 353.00 1.00 1,643.00 124.00 42.00 952.835.9090 . Fax 952.835.3261 www.aemcpas.com City of Centervil1e May 4, 2006 Page Six Credit I City of Cente1ville May 4, 2006 Page Seven Adjusting Journal Entries JE # 16 - Continued Debit Credit To correct aeemed interest allocation 101-49200-36210 Interest Earnings $ 1,830.00 306-49200-36210 Interest Earnings 6.00 308-49200-36210 Interest Earnings 13.00 312-49200-36210 Interest Earnings 573.00 317-49200-36210 Interest Earnings 18.00 324-10450 Interest Receivable on Invest 1,106.00 325-10450 Interest Receivable on Invest 39.00 327-49200-36210 Interest Earnings 413.00 336-49200-36210 Interest Earnings 19.00 339-49200-36210 Interest Earnings 6.00 342-49200-36210 Interest Earnings 275.00 345-49200-36210 Interest Earnings 1,173.00 346-49200-36210 Interest Earnings 1,205.00 402-49200-36210 Interest Earnings 169.00 412-10450 Interest Receivable on Invest 670.00 414-10450 Interest Receivable on Invest 28.00 415-10450 Interest Receivable on Invest 199.00 438-10450 Interest Receivable on Invest 561.00 441-10450 Interest Receivable on Invest 201.00 442-10450 Interest Receivable on Invest 205.00 443-49200-36210 Interest Earnings 10.00 445-10450 Interest Receivable on Invest 788.00 446-10450 Interest Receivable on Invest 353.00 447-49200-36210 Interest Earnings 1.00 601-10450 Interest Receivable on Invest 1,643.00 602-49200-36210 Interest Earnings 124.00 614-10450 Interest Receivable on Invest 42.00 Total $ 11.670.00 $ 11.670.00 952.835.9090 . Fax 952.835.3261 www.aemcpas.com . tiI Adjusting Journal Entries JE # 17 To correct allocation of Fair Value Adjustment 101-49200-36210 Interest Earnings 306-49200-36210 Interest Earnings 308-49200-36210 Interest Earnings 312-10111 Fair Value Adjustments 317-49200-36210 Interest Earnings 324-10111 Fair Value Adjustments 327-10111 Fair Value Adjustments 336-10111 Fair Value Adjustments 339-492oo-~6210 Interest Earnings 342-10111 Fair Value Adjustments 345-10111 Fair Value Adjustments 346-49200-36210 Interest Earnings 402-10111 Fair Value Adjustments 412-49200-36210 Interest Earnings 414-49200-36210 Interest Earnings 415-49200-36210 Interest Earnings 438-10111 Fair Value Adjustments 441-10111 Fair Value Adjustments 442-10111 Fair Value Adjustments 443-49200-36210 Interest Earnings 445-10111 Fair Value Adjustments 446-10111 Fair Value Adjustments 447-49200-36210 Interest Earnings 601-10111 Fair Value Adjustments 602-10111 Fair Value Adjustments 614-49200-36210 Interest Earnings Debit $ 6,560.00 131.00 231.00 61.00 106.00 717.00 437.00 274.00 38.00 498.00 80.00 195.00 301.00 128.00 99.00 349.00 479.00 238.00 238.00 58.00 717.00 166.00 67.00 ],351.00 2,488.00 83.00 952.835.9090 · FlU 952.835.3261 www.aemepas.com City of Centerville May 4, 2006 Page Eight Credit I City of Centerville May 4, 2006 Page Nine Adjusting Journal Entries JE # 17 - Continued Debit Credit To correct allocation of Fair VaIue Adjustment . 101-10111 Fair Value Adjustments $ 6,560.00 306-10111 Fair Value Adjustment 131.00 308-10111 Fair Value Adjustment 231.00 312-49200-36210 Interest Earnings 61.00 317-10111 Fair Value Adjustment 106.00 324-49200-36210 Interest Earnings 717.00 327-49200-36210 Interest Earnings 437.00 336-49200-36210 Interest Earnings 274.00 339-10111 Fair Value Adjustment 38.00 342-49200-36210 Interest Earnings 498.00 345-49200-36210 Interest Earnings 80.00 346-10111 Fair Value Adjustments 195.00 402-49200-36210 Interest Earnings 301.00 412-10111 Fair Value Adjustments 128.00 414-10111 Fair Value Adjuslment 99.00 415-10111 Fair Value Adjuslments 349.00 438-49200-36210 Interest Earnings 479.00 441-49200-36210 Interest Earnings 238.00 442-49200-36210 Interest Earnings 238.00 443-10111 Fair Value Adjuslment 58.00 445-49200-36210 Interest Earnings 717.00 446-49200-36210 Interest Earnings 166.00 447-10111 Fair Value Adjustment 67.00 601-49200-36210 Interest Earnings 1,351.00 602-49200-36210 Interest Earnings 2,488.00 614-10111 Fair Value Adjustments 83.00 Total $ 16,090.00 $ 16,090.00 Adjusting Journal Entries JE # 19 To record addl air 202-13200 Due From Other Governments $ 32,467.00 202-46300-33130 CDBG $ 32,467.00 Total $ 32,467.00 $ 32,467.00 952.835.9090 . Fax 952.835.3261 www.aemcpas.com Ii City of Centerville May 4, 2006 Page Ten Adjusting Journal Entries JE # 23 Debit Credit To transfer assessments coded to wrong fimd in 2004 312-43000-720 transfer out $ 15,825.00 601-10100 Cash 7,121.00 602-10100 Cash 8,704.00 312-10100 Cash $ 15,825.00 601-49200-39203 Transfer from Other Fund 7,121.00 602-49200-39720 Transfer from other Fund 8,704.00 Total S 31,650.00 $ 31,650.00 Adjusting Journal Entries JE # 26 To reclass mv baca 101-49200-33400 State Grants and Aids $ 1,909.00 101-49200-33402 Homestead Credit $ 1,909.00 Total $ 1,909.00 $ 1,909.00 Adjusting Journal Entries JE # 27 To correct coding ofCSAH 14 Watennain assessment 339-43000-36100 Special Assessments $ 4,830.00 601-10100 Cash 4,830.00 339-10100 Cash $ 4,830.00 601-49400-36100 Special Assessments 4,830.00 Total $ 9,660.00 $ 9,660.00 Adjusting Journal Entries JE # 28 To reclass assessments to correct fund 312-10100 Cash $ 34,293.00 412-43140-36100 Special Assessments 34,293.00 312-43140-36100 Special Assessments $ 34,293.00 412-10100 Cash 34,293.00 Total S 68,586.00 $ 68,586.00 Adjusting Journal Entries JE # 50 To reclass interest payments 345-47000-610 Interest $ 11,100.00 345-47000-611 Bond Interest $ 11,100.00 Total S 11,100.00 S 11,100.00 952.835.9090 . Fax 952.835.3261 www.aemcpas.com IJ City of Centerville May 4, 2006 Page Eleven Adjusting Journal Entries JE # 51 Debit Credit To reverse and correct transfer entry 101-10100 Cash $ 2,777.00 101-45350-33630 County SCORE Funds 2,777 .00 617-10100 Cash 2,777.00 617-43200-36290 Solid Waste Reimbursement 2,777.00 101-10100 Cash $ 2,777 .00 101-49390-700 Transfers (GENERAL) 2,777.00 617-10100 Cash 2,777.00 617-43200-36290 Solid Waste Reimbursement 2,777.00 Total $ 11,108.00 S 11,108.00 Adjusting Journal Entries .IE # 53 To correct coding of bond payments 601-10100 Cash $ 23,000.00 601-22500 Bonds Payable-Current Portion 33,750.00 601-23500 Bonds Payable - non current 143,250.00 602-22500 Bonds Payable-Current Portion 41,250.00 602-23500 Bonds Payable - non current 181,750.00 601-43220-600 Debt Srv Principal (GENERAL) $ 23,000.00 601-43220-600 Debt Srv Principal (GENERAL) 177 ,000.00 602-10 1 00 Cash 23,000.00 602-43220-600 Debt Srv Principal (GENERAL) 200,000.00 Total $ 423,000.00 $ 423,000.00 Adjusting Journal Entries JE # 58 To reverse reclassify transfer entry made by city 101-46000-39203 Transfer from Other Fund $ 7,904.00 101-46000-39203 Transfer from Other Fund 45,847.00 408-49995-39203 Transfer from Other Fund 63,799.00 415-49995-39203 Transfer from Other Fund 11,561.00 440-49995-39203 Transfer from Other Fund 251.00 101-49390-720 Operating Transfers $ 7,904.00 101-49390-720 Operating Transfers 45,847.00 408-46000-720 Operating Transfers 63,799.00 415-49390-720 Operating Transfers 11,561.00 440-46000-720 Operating Transfers 251.00 Total $ 129,362.00 S 129,362.00 952.835.9090 . Fax 952.835.3261 www.aemcpas.com IJ City of Centerville May 4, 2006 Page Twelve Adjusting Journal Entries JE # 59 To correct city transfer entries that were incorrectly coded from transfer ins to transfer outs 101-46000-39203 Transfer from Other Fund 101-49390-700 Transfers (GENERAL) 101-49390-700 Transfers (GENERAL) 342-49200-720 Transfer to other fund 408-46000-700 Transfers (GENERAL) 430-46000-700 Transfers (GENERAL) 430-49995-39203 Transfer from Other Fund 440-46000-700 Transfers (GENERAL) 442-49300-720 Operating Transfers 101-46000-39203 Transfer from Other Fund 101-49390-700 Transfers (GENERAL) 101-49390-720 Operating Transfers 342-49200-39203 Transfer from Other Fund 408-49995-39203 Transfer from Other Fund 430-46000-720 Operating Transfers 430-49300-720 Operating Transfers 440-49995-39203 Transfer from Other Fund 442-49200-39203 Transfer from other funds Total Debit Credit $ 293.00 1,261.00 6,391.00 614.00 6,391.00 1,261.00 1,261.00 251.00 614.00 $ 6,391.00 1,261.00 293.00 614.00 6,391.00 1,261.00 1,261.00 251.00 614.00 $ 18,337.00 $ 18,337.00 Adjusting Journal Entries JE # 62 To reverse balances from closed fund 101-10450 Interest Receivable on Invest 101-49200-36210 Interest Earnings 339-10111 Fair Value Adjustment 101-10111 Fair Value Adjustments 339-10450 Interest Receivable on Invest 339-49200-36210 Interest Earnings Total $ 8.00 30.00 38.00 $ 38.00 8.00 30.00 76.00 S 76.00 s Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting or auditing matter that could be significant to the financial statements or the auditor's report. Weare pleased to report that no such disagreements arose during the course of our audit 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 City'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 accotmtants. 952.835.9090 . Fax 952.835.3261 www.aemcpas.oom I City of Centerville May 4, 2006 Page Thirteen Issues Discussed Prior to Retention of Independent Auditors 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. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing our audit Other Matters The following are areas that came to our attention during the audit that we feel should be reviewed: Financial Position and Results of Operations 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 $233,253 from 2004. The fund balance of$I,549,356 is 77 percent of the 2006 budgeted expenditures. We recommend the fund balance be maintained at a level sufficient to fund operations until the major revenue sources are received in June. We feel a reserve of approximately 40 to 50 percent of planned expenditures and transfers out is adequate to meet working capital and small emergency needs. At the current level, the fund balance is above the range of what is generaIly recommended as a miniT1\1111l. The Minnesota Office of the State Auditor has classified cities' unreserved fund balance levels relative to expenditures as follows: Extremely low Low Acceptable Moderately high High Very high Extremely high Under 20% 21 - 34 35 - 50 51 - 64 65 - 100 101 - 150 Above 150 The State Auditor does group all General and special revenue funds of the City when making this calculation where our calculation is based only on the General fund. Although there is no legislation regulating fund balance, it is a good policy to designate intended use of fund balance. This helps address citizen concerns as to the use offund balance and tax levels. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com City of Centerville May 4, 2006 Plige Fourteen A table summarizing the General fund balance in relation to budget follows; Percent Fund General of Fund Balance Budget Fund Balance to Year December 31 Year Budget Budget 2000 $ 841,154 2001 $ 1,654,352 51 % 2001 713,080 2002 1,797,613 40 2002 937,932 2003 1,899,469 49 2003 1,068,381 2004 2,002,000 53 2004 1,316,103 2005 2,046,000 64 2005 1,549,356 2006 2,019,600 77 Fund Balances as a ,Percent of Next Year's Bndget $2,500,0(0) I i i \ '---~ $1,654,352 .... $2,002,000 $1.??_?:~1_~_.~1.!~??,1.~?......., . . $2,()46,000 $2,019,()00 -.--.. ..--a $2,000,000 -'.~'^"~-"''''~'' i . 51% S500,OOO~--- $1,500,000 $1,000,000 53% -. -~- ~ 40% I I --l $- -....-r. .~~"m.r"'''''''''''--_-..- 2000 2001 2002 2003 2004 2005 2006 '" ...."" j......Actual Fund Balance-Budget i ~_.."...~.............,.,,,.. 952.835.9{)()0 . Fa:x952.835.3261 www.aemepas.eom II City of Centerville May 4, 2006 Page Fifteen Fund balance should be maintained for the following reasons: Purposes and Benefits . Expenditures are incurred somewhat evenly throughout the year. However, currently, property tax and state aid revenues are not received until the second half of the year. An adequate fund balance will provide the cash flow required to finance the General fund expenditures until these revenue somces are received. . The City is vulnerable to legislative actions at the State and Federal level. The State eliminated HACA aid with the 2001 legislative session and imposed reductions of market value credit aid and local government aid for some cities. Levy limits have also been implemented for municipalities in past legislative sessions. An adequate fund balance will provide a temporary buffer against those aid adjustments and levy limits. . Expenditures not anticipated at the time the annual budget was adopted may need immediate Council action. These would include capital outlay replacement, lawsuits and other items. An adequate fund balance will provide the financing needed for such expenditures. . A strong fund balance will assist the City in obtaining, maintaining or improving its bond rating. The result will be better interest rates in future bond sales. A summary of the 2005 operations is as follows: Excess of revenues over expenditures Variance with Final Final Budget Budgeted Actual Positive Amounts Amounts (Negative) $ 2,107,900 $ 2,162,998 $ 55,098 2,046,000 1,912,328 133,672 61,900 250,670 188,770 Revenues Expenditures Other financing sources (uses) Sale of capital assets Transfers in Transfers out 66,989 40,000 65,791 (102,000) (150,197) (62,000) (17,417) (lOO) 233,253 1,316,103 1,316,103 $ 1,316,003 $ 1,549,356 66,989 25,791 (48,197) Total other financing sources (uses) 44,583 Net change in fund balances 233,353 Fund balances, January 1 Fund balances, December 31 $ 233,353 . The majority of the favorable variance in expenditures resulted from unspent general government capital outlay. 952.835.9090 · Fax 952.835.3261 www.aemcpas.CODl City ofCenterviUe May 4, 2006 Page Sixteen A more detailed comparison of General fund revenues and transfers in. with the prior year is as follows: Percent Increase of (Decrease) Source 2005 Total 2004 From 2004 Taxes $ 1,615,625 70.4 % $ 1,476,123 $ 139,502 Licenses and permits 223,481 9.7 234,463 (10,982) Intergovernn:tental 180,861 7.9 192,554 (11,693) Charges for services 748 2,346 (1,598) Fines and forfeitures 34,316 1.5 23,202 11,114 Special assessments 2,202 (2,202) Interest on investn:tents 24,366 1.1 29,175 (4,809) Miscellaneous 83,601 3.6 44,121 39,480 Sale of capital assets 6(:i,989 2.9 110,000 (43,011) Transfers in 65,791 2.9 14,969 50,822 Total revenues and transfers $ 2,295,778 100.0 % $ 2,129,155 $ 166,623 The 2005 revenues and transfers are graphically presented as follows: 2005 Revenues Property taxes 70.4% Sale of general :fixed assets 2.9% ___Licenses and permits 9.7% Transfers in 2.9% \ \ Intergovernmental , 7:9% \ Fines and forfeitures '- 1.5% 952.835.9QOO · Fax 9S2.8:~5.3261 www.8t'mcpas.()(lID I City of Centerville May 4, 2006 Page Seventeen A more detailed comparison of expenditures and transfers out with the prior year is as follows: Percent Increase of (Decrease) Program 2005 Total 2004 From2004 Current General government $ 490,306 23.8 % $ 481,213 $ 9,093 Public safety 965,643 46.8 842,191 123,452 Public works 242,361 11.8 293,699 (51,338) Culture and recreation 50,708 2.5 64,198 (13,490) Economic development 31,284 1.5 8,266 23,018 Miscellaneous 18,024 0.9 18,103 (79) Total current 1,798,326 87.3 1,707,670 90,656 Capital outlay 114,002 5.4 170,311 (56,309) Transfers out 150,197 7.3 3,452 146,745 Total expenditures and transfers $ 2,062,525 100.0 % .$ 1,881,433 $ 181,092 The 2005 expenditures and transfers are graphicallY presented as follows: 2005 Expenditures Transfers out 7.3% General govemment 23.8% Miscellaneous 0.9% ~ Economic ~ development 1.5% Public safety 46.8% Capital outlay 5.4% Culture and recreation 2.5% Public works 11.8% 952.835.9090 . FllX 952.835.3261 www.aemcpas.oom I City of Centerville May 4, 2006 Page Eighteen Nonmajor Special Revenue Funds Tbese funds are used to account for revenues derived from specific revenue sources that are restricted to expenditures for specific purposes. The fund balances for 2005 and 2004 are as follows: Fund Fund Balances December 31, Increase 2005 2004 (Decrease) $ 16,422 $ 19,643 $ (3,221) 25,602 25,602 $ 42,024 $ 19,643 $ 22,381 Nonmajor Cable T.V. Community Development Block Grant Total Debt Service 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 Mound Trail $ 21,863 $ 21,901 $ 21st Avenue Improvements 39,619 45,912 G.O.lmprovementBonds of2004B 448,987 959,603 2,200,000 Parkview Development 6,096 G.O.lmprovement Bonds of2000 146,406 158,113 90,000 G.O. Improvement Bonds of2001 616,122 617,207 835,000 G.O. Improvement Bonds of2002 838,075 839,551 580,000 G.O. Temporary Improvement Bonds of 2003 635,449 783,345 740,000 G.O. Improvement Bonds of2004A 545,332 755,374 780,000 Joint police Station 2005A 827,750 $ 3,291,853 $ 4,187,102 $ 6,052,750 Maturity 2020 2009 2011 2013 2014 2006 2007 2021 The City currently has cash in excess of bonds outstanding in the G.O. hnprovement Bonds 2002 and 2000 funds. The City has detennined that the call date on these two issues is not until 2008. The City should continue to annually review the cash flow of each debt service fund to determine ifbonds can be prepaid or if cash flow is adequate to meet future needs. In addition, several funds have paid their debt obligation and can be closed to wherever the Council deems appropriate. Tbe Mound Trail, 21 at Avenue Improvements and Parkview Development should be closed by resolution in 2006. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com IJ City of Centerville May 4, 2006 Page Nineteen Capital Projects Funds The following funds were established to account for the resources used for the acquisition or construction of major capital facilities. As projects are completed, any remaining funds should be transferred to their funding source. The following funds along with their fund balance or deficit are included in this group: Fund Balances (Deficits) December 31, Increase Fund 2005 2004 (Decrease) Nonmajor Park $ 334,937 $ 317,341 $ 17,596 Municipal Street Improvement 99,553 286,369 (186,816) Pedestrian Trail Ways 12,423 12,545 (122) Storm Water 233,802 300,995 (67,193) TIF District 1-4 (5,151) (6,985) 1,834 21 Avenue Improvements Pheasant Marsh 156,470 (156,470) Eagles Pass (phase 2) 55,708 (55,708) Pheasant Marsh (Phase 2) 56,281 (56,281) Pheasant Marsh III 6,076 8,965 (2,889) Peltier Preserve 160,103 (160,103) Hunter's Crossing 54,308 106,573 (52,265) Centerville Town Office Park 8,385 5,024 3,361 Hunter's Crossing 3rd Addition 78 78 Total $ 744,411 $ 1,459,389 $ (714,978) The City needs to monitor the status of capital projects and ensure that sufficient resources exist for the planned activities of the fund. It appears that there currently is a process in place to close out the projects when they have completed their purpose. 952.835.9090 · Fax 952.835.3261 www.aemcpas.com I City of Centerville May 4, 2006 Page Twenty Enterpris~ Funds Water Fund The results of the operations and cash position of the Water fundfor the past three ye~ areas follows; Percent Percent Percent 2003 of Revenues 2004 of Revenues 2005 of Revenues $ 195,229 100.0 % $ 193.,938 100.0 % $ 220,199 100.0 % la6,808 95.7 180,848 93.3 200,880 91.2 8,421 4.3 13,090 6.7 19,319 8.8 432,635 221.6 121,098 62.4 109,943 49..9 194,929 99.8 372,232 191.9 39,108 17.8 (3,635) (2.0) (40,000) (19.9) 24,907 11.3 $ 635,985 325.7 % $ 502,785 259.0 % $ 153,277 67.9 % $ 1,356,310 $ 856,731 $ 402,634 $ 208,500 $ 177.000 $ Water Fund Operating revenues Operating expenses Operating income Nonoperating revenues Capital contributions from other funds Transfers out Transfers in Change in net asSets Cash and temporary investments 'Bonds payable $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- 2003 2004 2005 ,_ Operating revenues I._ NOl1operating revenues I ~ Chan~_~~~et assets -1 _ Operating expenses ; I::J Capital contributions from other funds\ II CasE.~d temporary investments I The hook-up fees generate. revenue for expansion of the system and are reported in the nonoperating revenues. These fees have contributed to the majority of project costs over the last several ye.ars. Since the cash balance has decreased so significantly over the past three years it will be important to complete a thorough rate analysis to ensure that current charges will be sufficient to cover the operating costs of the system. 952.835.9000 "Fall. 952.$35.3261 www.aemcpas.com II Cjty of CertterviIle May 4, 2006 Page Twenty~One Sewer Fund The results of operations and cash position of the Sewer fund for the past three years are as follows: Bonds payable Percent Percent Percent 2003 ofRevenue~ 2004 of Revenues 2005 of Revenues $ 233,299 100.0 % $ 254,694 100.0 % $ 287,443 100.0 % 252,613 108.3 274,53& 107.8 351,133 122.2 (19,314) (8.3) (19,844) (7.&) ( 63,690) (22.2) 325,245 139.4 122,643 48.2 139,088 48.4 75,712 32.5 15,117 5.9 3,635 1.3 8,704 2.5 $ 381,643 163.6 % $ 121,551 47.6 % $ 84,102 28.7 % $ 1,999,018 $ 2,156,799 $ 2,025,827 $ 261,500 $ 223,000 $ Sewer Fund Operating revenues Operating expenses Operating loss Nonoperating revenues Capital contributions from other funds Transfers in Change in net assets Cash and temporary investments $500,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $- 2003 2004 2005 · Operating expenses------..-.-.-J o Capital contributions from other. funds. II Cash and temporary investments -~~-- . 1-<< . Operating revenues , . Nonoperating revenues (expenses) 1 . Change in net assets The Sewer cash is very high compared with operating expenses but hook-up fees and an increase in rates have also been a major factor in the increase. Itis important that the City review rates to ensure that the revenue is sufficient to cover operating expenses. As mentioned in the Water fund analysis, the hook-up fees and reported in the nonoperating revenues and should be used for the expansion of the system. 9S2.835.9090 . Fax 9."'12.835.3261 ww.....aem<1p1l5.COD1 II M," City of Centerville May 4, 2006 Page Twenty-Two Future Accounting Staudard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements: GASB Statement No. 42 - Accounting and Financial Reporting/or Impairment o/Capital Assets and/or Insurance Recoveries This statement is effective for periods beginning after December IS, 2004 and deals with the accounting and financial reporting for impairment of capital assets. According to the GASB, "This statement improves financial reporting because it requires governments to report the effects of capital asset impairments in their financial statements when they occur rather than as a part of the ongoing depreciation expense for the capital asset or upon disposal of the capital asset. Users of financial statements will better understand when impainnents have occurred and what their financial impact is on the City. This statement also enhances comparability of financial statements between governments by requiring all governments to account for insurance recoveries in the same manner." GASB Statement No. 43 - Financial Reportingfor Post employment Benefit Plans Other than Pension Plans This statement is effective one year prior to the effective date of Statement No. 45 for the employer or largest participating employer in the benefit plan for multiple-employer plans. According to Statement No. 43, "The objective of this statement is to establish uniform standards of financial reporting by State and local governmental entities for other post employment benefit plans (OPEB plans). The term other post employment benefits (OPEB) refers to post employment benefits other than pension benefits and includes (a) post employment healthcare benefits and (b) other types of post employment benefits (for example, life insurance) if provided separately from a pension plan. The term plans, in this context, refers to trust or other :funds through which assets are accumulated to finance OPEB, and benefits are paid as they come due. This statement provides standards for measurement, recognition, and display of the assets, liabilities, and, where applicable, net assets and changes in net assets of such funds and for related disclosures. The requirements of this statement apply whether an OPEB plan is reported as a trust or agency fund or a fiduciary component unit of a participating employer or plan sponsor, or the plan is separately reported by a public employee retirement system (PERS) or other entity that administers the plan." GASB Statement No. 44 - Economic Condition Reporting: The Statistical Section an amendment o/NCGA Statement 1 1bis statement only applies to statistical sections offinancial statements. It is effective for periods beginning after June 15,2005. The City currently does not prepare a statistical section. GASB Statement No. 45 - Accounting and Financial Reporting by Employers for Post employment Benefits Other Than Pensions 1bis statement is effective in three phases based on a government's total annual revenues in the first fiscal year ending after June 15, 1999: . Governments that were phase I governments for the purpose of implementation of Statement No. 34 - those with a:nnual revenues of $1 00 million or more - are required to implement this statement in financial statements for periods beginning after December 1 S, 2006. . Governments that were phase 2 governments for the purpose of implementation of Statement No. 34 - those with total a:nnual revenues of $10 million or more but less than $100 million - are required to implement this statement in financial statements for periods beginning after December 1 S, 2007. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com . II City of Centcrvill.e May 4, 2006 Page Twenty-Three . Governments that were phase 3 governments for the purpose of implementation of Statement No. 34 - those with total annual revenues of less than $10 million - are required to implement this statement in financial statements for periods beginning after December 15,2008. Statement No. 45 gives the following summary, "In addition to pensions, many state and local governmental employers provide other post employment benefits (OPEB) as part of the total compensation offered to attract and retain the services of qualified employees. OPEB includes post employment healtbcare, as well as other fonns of post employment benefits (for example, life insurance) when provided separately from a pension plan. This statement establishes standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities ( assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of state and local governmental employers." GASB Statement No. 46 - Net Assets Restricted by Legiskltion an amendment ofGASB Statement No. 34 This statement is effective for periods beginning after June 15, 2005. Statement No. 46 gives the following surmnary "GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, requires that limitations on the use of net assets imposed by enabling legislation be reported as restricted net assets. In the process of applying this provision, some governments have had difficulty interpreting the requirement that those restrictions be "legally enforceable." The confusion over this phrase has resulted in a diversity of practice that has diminished comparability. This statement clarifies that a legally enforceable enabling legislation restriction is one that a party external to a government - such as citizens, public interest groups, or the judiciary - can compel a government to honor. The statement states that the legal enforceability of an enabling legislation restriction should be reevaluated if any of the resources raised by the enabling legislation are used for a purpose not specified by the enabling legislation or if a government has other cause for reconsideration. Although the determination that a particular restriction is not legally enforceable may cause a government to review the enforceability of other restrictions, it should not necessarily lead a government to the same conclusion for all enabling legislation restrictions. This statement also specifies the accounting and financial reporting requirements ifnew enabling legislation replaces existing enabling legislation or if legal enforceability is reevaluated. Finally, this Statement requires governments to disclose the portion of total net assets that is restricted by enabling legislation." GASB Statement No. 47 - Accountingfor Termination Benefits In general, Statement No. 47 is effective for financial statements for periods beginning after June 15,2005. However, for termination benefits that affect defined benefit post employment benefits other than pensions, governments should implement Statement No. 47 simultaneously with Statement No. 45, Accounting and Financial Reporting by Employers for Post employment Benefits Other Than Pensions. The statement provides accounting and reporting guidance for state and local governments that offer benefits such as early retirement incentives or severance to employees that are involuntarily terminated. The statement requires that similar forms of termination benefits be accounted for in the same manner and is intended to enhance both the consistency of reporting for termination benefits and the comparability of financial statements. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com . I City of Centerville May 4, 2006 Page Twenty-Four ****** This report is intended solely for the information and use of Council, management and the Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the opportunity to be of service and for the courtesy and cooperation extended to us by your staff. May 4, 2006 Minneapolis, Minnesota ~) 1lJ :~JLt-f ABDO, EICK & MEYERS, LLP Certified Public Accountants 952.835.9090 · Fax 952.835.3261 www.aemcpas.com CITY OF CENTERVILLE CENTERVILLE, MINNESOTA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2005 CITY OF CENTERVllLE, MINNESOTA TABLE OF CONTENTS DECEMBER31,2005 Page No. 1. INTRODUCTORY SECTION Elected and Appointed Officials 1 n. FINANCIAL SECIlON Independent Auditor's Report Management's Discussion and Analysis 2-3 I-XI Basic Financial Statements Government-wide Financial Statements Statement of Net Assets Statement of Activities Fund Financial Statements Governmental Funds BalanCe Sheet Reconciliation of the Balance Sheet to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Proprietary Funds Sta~entsofNetAssets Statements of Revenues, Expenses and Changes in Fund Net Assets Statements of Cash Flows 4 5-6 7 8 9 10 11 12 - 13 14 - 15 16 - 19 Notes to the Financial Statements 20 - 36 Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Debt Service Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Deficits Tax and Special Assessment Levies and Collections Summary Financial Report Revenues and Expenditures for General Operations - Governmental Funds 37 - 40 40 -44 45 - 48 49- 50 51 - 52 53 54 m. OTHER REPORTS Report on Minnesota Legal Compliance Report on Intemal Control Over Financial Reporting Based on and Audit of Financial Statements Schedule of Findings 55 56 57 ThITRODUCTORYSECTION CITY OF CENTERVILLE CENTERVILLE,MINNESOTA YEAR ENDED DECEMBER 31,2005 CITY OF CENlERVILLE, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 2005 ELECTED Name Title Term Expires Mary Capra Rick Terway Michelle Lakso JeffPaar Tom Lee Mayor Council Member Council Member Council Member Council Member 12/31/06 12/31/06 12131/08 12131/06 12/31/06 APPOINTED Dallas Larson Teresa Bender John Meyer City Administrator City Clerk Finance Director -1- FINANCIAL SECTION CITY OF CENTERVILLE CENTERVILLE, MlNNESOTA YEAR ENDED DECEMBER 31, 2005 ABDO ElCK & . MEYERSlLP Urt(ied Puh1Jc Aammtants & Consultmw Gnmdview Square 5201 Eden Avenue Suite 370 Edina,}IN S5436 INDEPENDENT AUDITOR'S REPORT Honorable Mayor and 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 ofCenterville, Minnesota (the City), as ofand for the year ended December 31, 2005, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management.. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall :financial statement presentation. W ebelieve that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaini:ilg fund information of the City as of December 31, 2005, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison schedule for the General fund for the yeartben ended in conformity with accounting principles generaI1y accepted in the United States of America. The management's discussion and analysis on pages I through XI is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the reqUired supplementary information. However, we did not audit the information and express no opinion on it 9S2.835.909O · Fax 952.835.3261 www.aemcpas.com I Page Two Our audit was conducted for the pmpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and. in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. May 4, 2006 Minneapolis, Minnesota , ~ ~ ~~JLl,t ABDO, EICK & MEYERS, LLP Certified Public Accountants 952.835.9090 · Fax 952.835.3261 www.aemcpas.com Management's Discussion and Analysis As management of the City ofCenterville, 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, 2005. Financial Highlights . The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $17,470,621 (net assets). Of this amount, $5,089,023 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. . The City's total net assets decreased $1,028,229. . As of the close of the current fiscal year, the City's governmental funds reported combined ending fimd balances of $5,663,244 a decrease of$2,308 in comparison with the prior year. Approximately 27.0 percent of this total amount, $1,529,573, is available for spending at the City's discretion, but has been designated for specific purposes. . At the end of the current fiscal year, unreserved fundbalance for the General fund was $1,529,573, or 80 percent of total General fund expenditures. While these funds are not legally reserved, they are designated for future purposes. . The City's total debt decreased $57,250, 0.9 percent during the current fiscal year. Major activity in debt occurred from the issuance of $827,750 in bonds. The overall decrease resulted from the prepayment of 1998 GO Improvement bonds and GO SewerlWater revenue bonds totaling $765,000 and regular bond payments totaling S120,000. 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 report also contains other supplemental information in addition to the basic financial statements themselves. -1- Management Discussion and Analysis - Continued May 4,2006 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 scl1edu1es 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 Discussion and Analysis Basic Financial Statements Reqnired Supplementary Information ---..---..--.--/.-- ---..---.-----.........-.-.- Govemment-wide Fund Financial FinaJicial Statements Statements r................................................................................l Notes to the Financial Statements Summary ( ) DetaO -ll- Management Discussion and Analysis - Continued May 4, 2006 Figure 2 s1.J.ID]]latizes 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 Governmental Funds Proprietary Funds Statements . Scope Entire City government The activities of the City that Activities the City operates (except fiduciary funds) and are not proprietary or similar to private businesses, the City's component units fiduciary, such as police, fire such as the water and sewer and parks system Required financial . Statement of Net Assets . Balance Sheet . Statements of Net Assets statements . Statement of Activities . Statement of Revenues, . Statements of Revenues, Expenditures, and Expenses and Changes in Changes in Fund Fund Net Assets Balances . Statements of Cash Flows Accounting Basis and Accrual accounting and Modified accrual accounting Accrual accounting and measurement focus economic resources focus and current financial economic resources focus resources focus Type of asset/1iability All assets and liabilities, both Only assets expected to be All assets and liabilities, both information financial and capital, and used up and liabilities that financial and capital, and short-term and long-term come due during the year or short-term and long-term soon thereafter; no capital assets included Type of in flow/out flow All revenues and expenses Revenues for which cash is All revenues and expenses information during year, regardless of received during or soon after during the year, regardless of when cash is received or paid the end of the year; when cash is received or paid expenditures 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 assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmemaJ. revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, economic development, culture and recreation, miscellaneous and interest on long-term debt The business-type activities of the City include water and sewer. -m- Management Discussion and Analysis - Continued May 4, 2006 The government-wide :financial statements can be found on pages 4 - 6 of this report. Fund Financial Statements Afimd 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 ensme 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. GovemmentoJ lulU/s. 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 infWws 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 gOVerIlllleIlt'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 30 individual governmental 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 and Debt Service funds, 11 of which are Debt Service funds. Data from the other 18 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 can be found on pages 7 - 11 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 and sewer. The proprietary fund provides the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the enterprise funds. The basic proprietary fund financial statements can be found on pages 12 - 19 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 can be found on pages 20 - 36 of this report. Other Information The combining statements referred to earlier in connection with non-major governmental funds are presented following the notes to financial statements. Combining and individual fund statements and schedules can be found on pages 37 - 54 of this report. -IV- "-Management Discussion and Analysis - Continued May 4, 2006 Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $17,470,621 at the close of the most recent fiscal year. By far, the largest portion of the City's net assets (46.3 percent) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment), less any related debt used to acquire those assets thatare 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. Total assets Summary of Net Assets Governmental Activities Business-type Activities Increase Increase 2005 2004 (Decrease) 2005 2004 (Decrease) $6,864,839 $ 7,637,372 $ (772,533) $ 2,851,010 $ 3,501,475 $ (650,465) 7,946,343 8,327,923 (381,580) 6,195,759 5,770,663 425,096 14,811,182 15,965,295 (1,154,113) 9,046,769 9,272,138 (225,369) 6,083,229 5,729,419 353,810 7,608 405,648 (398,040) 266,437 501,294 (234,857) 30,056 102,222 (72, 166) 6,349,666 6,230,713 118,953 37,664 507,870 (470,206) Assets Current and other assets Capital assets Liabilities NonCUITent liabilities outstanding Other liabilities Total liabilities Net assets Invested in capital assets, net of related debt Restricted for Future expansion Debt service Unrestricted Total net assets 1,893;593 2,617,923 (724,330) 6,195,759 5,370,663 71,631 71,631 4,220,615 4,238,229 (17,614) 2,347,308 2,878,430 (531,122) 2,741,715 3,321,974 $ 8,461,516 $ 9,734,582 $(1,273,066) $ 9,009,105 $ 8,764,268 825,096 (580,259) $ 244,837 The decrease in current and other assets in governmental activities is attributed to the prepayment of the GO Improvement Bonds, Series 1998 to reduce interest cost The decrease in current and other assets as well as the increase in capital assets in business- type activities is attributed to the completion of the conStruction to the water tower. The increase in non-current liabilities outstanding in the governmental activities is attributed to the debt for the Joint Police Station. The decrease in non-current liabilities outstanding in business-type activities is attn'buted to prepayment of the GO Sewer and Water Revenue Bonds, Series 1998 to reduce interest cost An additional portion of the City's net assets (24.2 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($5,089,023) may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, both for the City as a whole, as well as for its separate governmental and business-type activities. -v- Management DiSCU$sion and Analysis - Continued May 4,2006 Governmental activities. Governmental activities decreaSed the City's net assets by $1,273,066, thereby accounting for all of the decrease in the net assets of the City. Key elementS of this decrease are as follows: Changes in Net Assets Revenues Program revenues Charges for services Operating grants and contributions Capital grants and contributions General revenues Taxes Property taxes/tax increments Other taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets Miscellaneous Total revenues Expenses General government Public safety Public works Culture and recreation Economic development Miscellaneous Interest on long-term debt Water Sewer Total expenses Increase (decrease) in net assets before before capital contributions from other fimds and transfers Capital contributions from other funds Transfers Change in net assets Net assets, January 1 Prior period adjustment Net assets, December 31 Governmental Activities Increase 2005 2004 (Decrease) $ 450,257 61,358 51,882 1,624,110 777 78,218 127,891 66,989 79,811 2,541,293 526,587 1,776,469 1,073,693 72,405 116,440 18,024 200,799 3,784,417 (1,243,124) (39,108) 9,166 (1,273,066) 9,734,582 $ 8,461,516 $ 442,812 104,298 1,636,566 1,540,185 5,098 13,884 139,088 153,203 4,035,134 644,210 827,930 524,498 46,452 107,563 18,101 109,989 2,278,743 1,756,391 (387,349) l,369,042 7,579,540 786,000 $ 9,734,582 Business-type Activities Increase 2005 2004 (Decrease) $ 7,445 $ 662,786 (42,940) (1,584;684) 32,820 83,925 (4,321) 64,334 (11,197) 80,701 66,989 (73,392) (1,493,841) (117,623) 948,539 549,195 25,953 8,877 (77) 90,810 1,505,674 (2,999,515) 348,241 9,166 (2,642,108) 2,155,042 (786,000) $(1,273,066) 776,307 205,969 355,443 561,412 214,895 39,108 (9,166) 244,837 8,764,268 $ 9,009,105 $ 588,676 40,058 82,773 711,507 189,459 285,061 474,520 236,987 387,349 624,336 8,139,932 $ 8,764,268 $ 74,110 (7,238) (2,072) 64,800 16,510 70,382 86,892 (22,092) (348,241 ) (9,166) (379,499) 624,336 $ 244,837 The reduction in program revenues for capital grants and contributions in govemmenta1 activities the difference in debt issuance amounts for the reporting years. Governmental activities expenses changed as a result of delays in general government and public works capital improvements; public safety facility development (joint police station) expenditures; and, the addition of1ong~term debt interest payments for the GO Improvement Bonds, Series 2004B. -VI- Management DiscUssion. and Analysis. Continued May 4, 2006 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 $2,000,000 Sl,800,ooO $1,600,000 st,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $.. ~ / "'~ ~ 'lJ~ 0"~ F,,~ 4' ~ ~ o~ .$ ~v ~ ~ .o~ ~ "b/ ~:~ G~ / ~o~ ",I{; ?:i' '\J # :;>0 -\t;;\J0 0& ~rt; ~ ~{>" ~ b~ '!SJ$' ~ .....0.::;> o~ ~ ~~~ ~ ~~: b ~ ....0 'o~ ~<> ~ 0'::;> ~c .~ G~'" l- ~~~~~~!evenues - Expenses i Revenues by Source.. Governmental Activities Miscellaneous 3.14% Gain on sale of capital assets 2.64% Charges for services 17.72% Operating grants and contributions 2.41% Unrestricted investment earnings 5.03% ____--- ~- ~- r Grants aI'ld contributions not restricted to specific programs 3.08% Capital grants and contributions 2.04% \.... Taxes 63.94% For the most part, increases in expenses doselyparalleled inflation and gr()wth in the demand for services. .VIl- Management Discussion and A.nalysis - Continued May 4, 2006 Business-type activities. Business-type activities increased the City's net assets by $244,837, accounting for all of the growth in the City's net assets. Key elements oftms increase are as follows: . Waterus;!.ge rates and water base rate increased by 11.76 perce.nt, while the sewer rate increased by 8.16 percent. $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Expenses and Program Revennes -Business-type Activities $- . . ...... ..............,.......mu........~mN~#_"".".~m_^ Water Sewer \. Program ~~y~~l!.~~_~!~:~~S",1 Recycling Revenues by Source.. Business-type Activities Charges for services 85.38% Capital grants and contributions 4.23% Investment earnings 10.39% NllI- Management Discussion and Analysis - Continued May 4, 2006 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. Govemmenttdftmds. The focus of the City's governmentalfimds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City's governinental funds reported combined ending fund baIances of$5,663,244, an decrease of$2,308 in comparison with the prior year. Approximately 41 percent of this total amount $2,316,008 constitutes unreservedfimd balance, which is available for spending at the City's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed to pay debt service and prepaid expenses in the amount of $3,347,236. The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General fundwas $1,549,356. As a measure of the General fund's liquidity, it maybe useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 80 percent of fund expenditures, while total fund balance represents 81 percent of that same amount. . The fund balance of the City's General fund increased by $233,253 during the current fiscal year. . A portion of the General Fund unreserved fund balance is attributed to delays in general capital projects. This portion and any subsequent portions will be transferred to a general capital projects fund. The Debt Service fund has a total fund balance of $3,327,453, all of which is reserved for the payment of debt service. The net increase in fund balance during the current year in the Debt Service fund was $457,036. This net increase resulted from the prepayment of the GO Improvement Bonds, Series 1998 and the issuance of debt for the Joint Police Station 2005A. Proprietary funds. The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Umestricted net assets of the enterprise funds at the end of the year amounted to $2,741,715. The total growth in net assets for the funds was $244,837. 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 balanced and was not amended during the year. At year end, revenues exceeded expectations and expenditures were under expectations by a combined $188,670. -IX- Management Discussion and Analysis.- Continued May 4, 2006 Capital Asset and Debt Administration Capital Assets. The City's investment in capital assets for its governmental and business-type activities as of December 31,2005, amounts to $14,142,102 (net ofaccumu1ated 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: . Completion of the 2004 Municipal Street, Hunter's Crossing n and Water Tower projects Additional information on the City's capital assets can be found in Note 3C on page 29 - 30 oftbis report. Capital Assets Net of Depreciation Governmental Activities Increase 2005 2004 (Decrease) Business-type Activities Increase 2005 2004 (Decrease) $ $ 246,105 (246,105) 4,122,261 1,842,226 70,605 160,667 $ 4,438,971 $ 1,756,788 Land S 1,213,300 S 1,213,300 $ $ Buildings 476,319 675,209 (198,890) Construction in progress Inftastrocture 5,852,460 4,329,090 1,523,370 5,964,487 Machinery and equipment 404,264 631,017 (226,753) 231,272 Total S 7,946,343 $ 6,848,616 $ 1,097,727 $ 6,195,759 Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $6,052,750. While all of the City's bonds have revenue streams, they are all backed by the full faith and credit of the City. This net increase in General obligation bonds resulted from the prepayment of the GO Improvement Bonds, Series 1998 and the issuance of debt for the Joint Police Station 2005A. Outstanding Debt Business-type Activities Increase 2005 2004 (Decrease) $ $ $ 400,000 (400,000) 7,608 5,648 1,960 $ 7,608 $ 405,648 $ (398,040) Governmental Activities Increase 2005 2004 (Decrease) General obligation bonds General obligation revenue bonds Compensated absences payable $ 6,052,750 $ 5,710,000 $ 342,750 30,479 19,419 11,060 . Total $ .6,083,229 $ 5,729,419 $ 353,810 Minnesota statutes limit.the amount of net general obligation debt a City may issue to 2 percent of the market value of taxable property within the City. Net debt is debt payable solely from ad valorem taxes. The City currently has no debt applicable to this limit Additional information on the City's long-term debt can be found in Note 3D onpages 31 - 32 of this report. -x- Management Discussion and Analysis - Continued May 4, 2006 Economic Facton and Next Year's Budgets and Rates . Property valuations within the City remain strong and growing. . Inflationary trends in the region compare favorably to national indices. . Continuation of Market Value Homestead Reduction. . Commitment to CSAH 14 reconstruction, backage road project and downtown redevelopment All of these factors were considered in preparing the City's budget for the 2006 fiscal year. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City ofCenterville, 1880 Main Street, Centerville, Minnesota, 55038. -XI- GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF CENTERVILLE CENTERVILLE, MINNESOTA YEAR ENDED DECEMBER 31, 2005 THIS PAGE IS LEFT BLANK INTENTION ALL y CITY OF CENTERVILLE, MINNESOTA STATEMENT OF NET ASSETS DECEMBER 31, 2005 Governmental B:usiness-type Activities Activities Total ASSETS Cash and temporary investments $ 5,729,419 $ 2,428,461 $ 8,157,880 Receivables Accrued interest 10,166 4,120 14,286 Delinquent taxes 42,939 42,939 Accounts 14,445 132,917 147,362 Special assessments 902,657 264,889 1,167,546 Due from other governments 43,061 43,061 Inventories 8,612 8,612 Prepaid items 19,783 12,011 31,794 Deferred charges 102,369 102,369 Capital assets Land 1,213,300 1,213,300 Depreciable assets(net of accumulated depreciation) 6,733,043 6,195,759 12,928,802 TOTAL ASSETS 14,811,182 9;046,769 23,857,951 LIABILITIES Accounts payable 82,471 21,458 103,929 Accrued salaries payable 11,493 1,992 13,485 Contracts payable 11,899 11,899 Due to other governments 14,194 6,606 20,800 Accroed interest payable 68,856 68,856 Deposits payable 77,524 77 ,524 Noncurrent liabilities Due within one year Accrued compensated absences payable 30,479 7,608 38,087 Bonds payable 1,042,000 1,042,000 Due in more than one year Bonds payable 5,010,750 5,010,750 TOTAL LIABILITIES 6,349,666 37,664 6,387,330 NET ASSETS Invested in capital assets, net of related debt 1,893,593 6,195,759 8,089,352 Restricted for Future expansion 71,631 71,631 Debt service 4,220,615 4,220,615 Umestricted 2,347,308 2,741,715 5,089,023 TOTAL NET ASSETS $ 8,461,516 $ 9,009,105 $ 17,470,621 The notes to the financial statements are an integral part of this statement. -4- CITY OFCENTERVILLE, MINNESOTA STATEMENT OF ACTIVITIES FOR TIlE YEAR ENDED DECEMBER 31, 2005 FunctionslPrograms Expenses Governmental activities General government $ 526,587 Public safety 1,776,469 Public works 1,073,693 Culture and recreation 72,405 Economic development 116,440 Miscellaneous 18,024 Interest on long-term debt 200,799 Total governmental activities 3,784,417 Business-type activities Water 205,969 Sewer 355,443 Recycling Total business-type activities 561,412 Total $ 4,345,829 Charges for Services Program Revenues Operating Grants and Contnbutions Capital Grants and Contnbutions $ 20,440 $ 335,426 86,982 7,111 298 $ 61,258 100 31,450 17,228 3,204 450,257 61,358 51,882 296,159 19,138 363,850 6,224 .2,777 7,458 662,786 32,820 $ 1,113,043 $ 61,358 $ 84,702 General revenues Taxes Property taxes, levied for general purposes Tax increments Other taxes Grants and contnbutions not restricted to specific programs Umestricted investment earnings Gain on sale of capital assets Miscellaneous Transfers Capital contributions to/from other :funds Total general revenues and capital contn'butions from other funds Change in net assets Net assets, January 1 Net assets, December 31 The notes to the financial statements are an integral part of this statement -5- Net (Expenses) Revenues and Changes in Net Assets Governmental Business-type Activities Activities Total $ (506,147) $ $ (506,147) (1,379,785) (1,379,785) (955,261) (955,261) (48,066) (48,066) (112,838) (112,838) (18,024) (18,024) (200,799) (200,799) (3,220,920) (3,220,920) 109,328 109,328 14,631 14,631 10,235 10,235 134,194 134,194 (3,220,920) 134,194 (3,086,726) 1,584,849 1,584,849 39,261 39,261 777 777 78,218 78,218 127,891 80,701 208,592 66,989 66,989 79,811 79,811 9,166 (9,166) (39,108) 39,108 1,947,854 110,643 2,058,497 . (1,273,066) 244,837 (1,028,229) 9,734,582 8,764,268 18,498,850 $ 8,461,516 $ 9,009,105 $ 17,470,621 -6- TIllS PAGE IS LEFT BLANK INTENTIONALLY FUND FINANCIAL STATEMENTS CITY OF CENTERVILLE CENTERVILLE, MINNESOTA YEAR ENDED DECEMBER 31,2005 CITY OF CENTERVILLE, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2005 Other Total Debt Governmental Governmental General Service Funds Funds ASSETS Cash and temporary investmentS $ 1,661,865 $ 3,291,853 $ 775,701 $ 5,729,419 Receivables Accrued interest 2,971 5,762 1,433 10,166 Delinquent taxes 42,842 97 42,939 Accounts 409 14,036 14,445 Special assessments 13;170 889,487 31,063 939,120 Due from other governments 5,998 5,998 Prepaid items 19,783 19,783 TOTAL ASSETS $ 1,747,038 $ 4,187,102 $ 828,330 $ 6,762,470 LIABIlITIES AND FUND BALANCES LIABIlITIES Accounts payable $ 143,646 $ $ 28,127 $ 172,373 Due to other governments 1,816 1,816 Contracts payable 11,899 11,899 Accrued salaries payable 11 ,287 206 11,493 Accrued compensated absences payable 1,063 1,063 Deferred revenue 40,933 859,649 900,582 TOTAL LIABILITIES 197,682 859,649 41,895 1,099,226 FUND BALANCES Reserved for debt service 3,327,453 3,327,453 Reserved for prepaid items 19,783 19,783 Unreserved Designated for, reported in the General fund Working capital 1,529,573 1,529,573 Undesignated, reported in Special revenue funds 42,024 42,024 Capital proj ects funds 744,411 744,411 TOTAL FUND BALANCES 1,549,356 3,327,453 786,435 5,663,244 TOTAL LIABTIlTIES AND FUND BALANCES $ 1,747,038 $ 4,187,102 $ 828,330 $ 6,762,470 The notes to the financial statements are an integral part of this statement. -1- em OF CENTERVILLE, MINNESOTA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS GOVERNMENTAL FUNDS AS OF DECEMBER 31,2005 Total fund balances - governmental $ 5,663,244 Amounts reported for the governmental activities.in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets Less: acCllDlUlated depreciation 10,022,428 (2,076,085) 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 Less bond discount net of accumulated amortization Accrued compensated absences payable (6,052,750) 102,369 (29,416) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds Special assessments Taxes 870,583 29,999 Governmental funds do not report a liability for accroed interest until due and payable (68,856) Total net assets - govemmental activities $ 8,461,516 The notes to the financial statements are an integral part of this statement. -8- CI1Y OF CENTERVlLLE, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31,2005 Other Total Debt Governmental Governmental General Service Funds Funds REVENUES Taxes Property taxes $ 1,614,848 $ $ $ 1,614,848 Gambling 777 777 Tax increments 39,261 39,261 Licenses and permits 223,481 223,481 Intergovernmental 180,861 73,413 254,274 Charges for services 748 748 Fines and forfeitures 34,316 34,316 Special assessments 542,173 542,173 Interest on investments 24,366 78,400 25,125 127,891 Miscellaneous 83,601 93,656 177,257 TOTAL REVENUES 2,162.998 620,573 231,455 3,015,026 EXPENDfIlJRES Current General government 490,306 490,306 Public safety 965,643 965,643 Public works 242,361 12,322 254,683 Culture and recreation 50,708 6,910 57,618 Economic development 31,284 31,284 Miscellaneous 18,024 18,024 Capital outlay General government 25,390 25,390 Public safety 827,750 827,750 Public works 88,612 372,538 461,150 Culture and recreation 14,144 14,144 Economic development 85,156 85,156 Debt service Principal 485,000 485,000 Interest and other 205,091 205,091 TOTAL EXPENDITURES 1,912,328 1,517,841 491,070 3,921,239 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDlTIJRES 250,670 (897,268) (259,615) (906,213) OTHER FINANCING SOURCES (USES) Sale of capital assets 66,989 66,989 Transfers in 65,791 565,401 8,347 639,539 Bonds issued 827,750 827,750 Transfers out (150,197) (38,847) (441,329) (630,373) TOTAL OTHER FINANCING SOURCES (USES) (17,417) 1,354,304 (432,982) 903,905 NET CHANGE IN FUND BALANCES 233,253 457,036 (692,597) (2.308) FUND BALANCES, JANUARY 1 1,316,103 2,870,417 1,479,032 5,665,552 FUND BALANCES, DECEMBER 31 $ 1,549,356 $ 3,327,453 $ 786,435 $ 5,663,244 The notes to the financial statements are an integral part of this statement. -9- CITY OF CENTERVILLE, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN. FUND BALANCES TO THE STATEMENT OF ACTIVITIES OOVERNMENTAL.FUNDS YEAR ENDED DECEMBER 31,2005 Total net change in fund balances - govemmental funds 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 Depreciation expense Loss on disposal of assets The capital projects funds accounted for the construction of Water and Sewer fund assets. These costs of these assets are recorded as expense in the fund statements. When these assets are complete, they assets are transferred from the governmental to the business type activities. 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, bas any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Principal repayments Debt issued or incurred 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. Governmental fund report debt issuance premiums and discounts as an other futancing source or use at the time of issuance. Premiums and discounts are reported as an unamortized asset or liability in the district-wide financial statements. Certain revenues are recognized as soon as it is eam.ed. Under the modified accrual basis of accounting certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Special assessments Property taxes 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. Compensted absenses Change in net assets - governmental activities The notes to the financial statements are an integral part of this statement -10- $ (2,308) 276,452 (564,879) (54,045) (39,108) 485,000 (827,750) 20,036 (15,744) (510,723) (29,999) (9,998) $ (1,273,066) THIS PAGE IS LEFT BLANK INTENTIONALLY CITY OF CENTERVTI.LE, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31,2005 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) REVENUES Taxes General property taxes $ 1,700,000 $ 1,700,000 $ 1,614,848 $ (85,152) Gambling 777 777 Licenses and permits 211,550 211,550 223,481 11,931 Intergovernmental 116,333 116,333 180,861 64,528 Charges for services 2,400 2,400 748 (1,652) Fines and forfeitures 22,000 22,000 34,316 12,316 Special assessments 1,000 1,000 (1,000) Interest on investments 25,000 25,000 24,366 (634) Miscellaneous 29,617 29,617 83,601 53,984 TOTAL REVENUES 2,107,900 2,107,900 2,162,998 . 55,098 EXPENDITURES Current General government 475,133 475,133 490,306 (15,173) Public safety 901,684 901,684 965,643 (63,959) Public works 331,927 331,927 242,361 89,566 Culture and recreation 72,086 72,086 50,708 21,378 Economic development 6,300 6,300 31,284 (24,984) Miscellaneous 19,000 19,000 18,024 976 Capital outlay 239,870 239,870 114,002 125,868 TOTAL EXPENDITURES 2,046,000 2,046,000 1,912,328 133,672 EXCESS OF REVENUES OVER EXPENDITURES 61,900 61,900 250,670 188,770 OTHER FINANCING SOURCES (USES) Sale of capital assets 66,989 66,989 Transfers in 40,000 40,000 65,791 25,791 Transfers out (102,000) (102,000) (150,197) (48,197) TOTAL OrnER FINANCING SOURCES (USES) (62,000) (62,000) (17,417) 44,583 NET CHANGE IN FUND BALANCES (100) (100) 233,253 233,353 FUND BALANCES, JANUARY 1 1,316,103 1,316,103 1,316,103 FUND BALANCES, DECEMBER 31 $ 1,316,003 $ 1,316,003 $ 1,549,356 $ 233,353 The notes to the financial statements are an integral part of this statement. -11- CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF NET ASSEfS PROPRIETARY FUNDS DECEMBER 31, 2005 AND 2004 Business-type Activities - Enterprise Funds Water Sewer 2005 2004 2005 2004 ASSETS CURRENT ASSETS Cash and temporary investments $ 402,634 $ 856,731 $ 2,025,827 $ 2,156,799 Receivables Accrued interest 631 3,043 3,489 7,752 Accounts 49,904 47,688 83,013 75,358 Special assessments Current 6,783 459 8,290 459 Due from other funds 40,000 Inventories 8,612 12,780 Prepaid items 12,011 TOTAL CURRENT ASSETS 468,564 960,701 2,132,630 2,240,368 NONCURRENT ASSETS Special assessments receivable - deferred 153,933 184,145 88,425 112,964 Deferred charges 1,484 1,813 Capital assets Non-depreciable 1,310,687 76,447 Depreciable 4,450,938 2,625,951 3,074,075 2,927,534 Less accumulated depreciation (579,724) (503,768) (749,530) (666,188) TOTAL NONCURRENT ASSETS 4,025,147 3,618,499 2,412,970 2,452,570 TOTAL ASSETS 4,493,711 4,579,200 4,545,600 4,692,938 LIABlUTIES CURRENT liABILITIES Accounts payable 21,169 47,509 289 321 Contracts payable 33,168 Accrued salaries payable 993 3,886 999 3,886 Accrued interest payable 3,507 4,286 Due to other governments 953 615 5,653 10,692 TOTAL CURRENT LIABILITIES 23,115 88,685 6,941 19,185 NONCURRENT LIABILITIES Due within one year Bonds payable 33,750 41,250 Accrued compensated absences payable 3,804 3,804 Due in more than one year Bonds payable 143,250 181,750 TOTAL NONCURRENT LlABlUTIES 3,804 177,000 3,804 223,000 TOTAL LIABILITIES 26,919 265,685 10,745 242,185 NET ASSETS Invested in capital assets, net of related debt 3,871,214 1,945,183 2,324,545 2,038,346 Restricted for future expansion 71,631 71,631 Unrestricted 595,578 2,368,332 2,138,679 2,340,776 TOTAL NET ASSETS $ 4,466,792 $ 4,313,515 $ 4,534,855 $ 4,450,753 The notes to the financial statements are an integral part of this statement. -12- Business-type Activities - Enterprise Funds - Continued Recycling Totals 2005 2004 2005 2004 $ $ $ 2,428,461 $ 3,013,530 4,120 10,795 132,917 123,046 15,073 918 40,000 8,612 12,780 12,011 2,601,194 3,201,069 7,458 249,816 297,109 3,297 1,387,134 7,525,013 5,553,485 (1,329,254) (1,169,956) 7,458 6,445,575 6,071,069 7,458 9,046,769 9,272,138 21,458 47,830 33,168 1,992 7,772 7,793 6,606 11,307 30,056 107,870 75,000 7,608 325,000 7,608 400,000 37,664 507,870 6,195,759 3,983,529 71,631 71,631 7,458 2,741,715 4,709,108 $ 7,458 $ $ 9,009,105 $ 8,764,268 -13- CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS- PROPRIETARY FUNDS YEARS ENDED DECEMBER 31, 2005 AND 2004 Business-type Activities - Enterprise Funds . Water Sewer 2005 2004 2005 2004 OPERATING REVENUES Charges for services $ 220,199 $ 193,938 $ 287,443 $ 254,694 OPERATING EXPENSES Salaries and benefits 57,979 47,823 60,106 48,882 Supplies 20,045 15,615 1,479 1,680 Other services and charges 38,934 39,084 61,267 21,956 Utilities 2,751 2,118 1,391 1,060 MCES - disposal charges 137,494 115,945 Depreciation and amortization 81,171 76,208 89,396 85,015 TOTAL OPERATING EXPENSES 200,880 180,848 351,133 274,538 OPERATING INCOME (LOSS) 19,319 13,090 (63,690) (19,844) NONOPERATING REVENUES (EXPENSES) Interest on inves1ments 19,934 28,622 60,767 54,151 Special assessments 19,138 25,636 6,224 14,422 Hook up fees and unit charges 75,960 75,451 76,407 64;593 Interest expense (5,089) (8,611) (4,310) (10,523) TOTAL NONOPERATING REVENUES (EXPENSES) 109,943 121,098 139,088 122,643 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 129,262 134,188 75,398 102,799 CAPITAL CONTRIBUTIONS FROM OTIIER FUNDS 39,108 372,232 15,117 TRANSFERS IN 24,907 8,704 3,635 TRANSFERS OUT (40,000) (3,635) CHANGE IN NET ASSETS 153,277 502,785 84,102 121,551 NET ASSETS, JANUARY 1 4,313,515 3,810,730 4,450,753 4,329,202 NET ASSETS, DECEMBER 31 $ 4,466,792 $ 4,313,515 $ 4,534,855 $ 4,450,753 The notes to the financial statements are an integral part of this statement. -14- Business-type Activities - Enterprise Funds - Continued Recycling Totals 2005 2004 2005 2004 $ $ $ 507,642 $ 448,632 118,085 96,705 21,524 17,295 100,201 61,040 4,142 3,178 137,494 115,945 170,567 161,223 552,013 455,386 (44,371) (6,754) 80,701 82,773 7,458 32,820 40,058 2,777 155,144 140,044 (9,399) (19,134) 10,235 259,266 243,741 10,235 214,895 236,987 39,108 387,349 33,611 3,635 (2,777) (42,777) (3,635) 7,458 244,837 624,336 8,764,268 8,139,932 $ 7,458 $ $ 9,009,105 $ 8,764,268 -15- CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF CASH FLOWS ENTERPRISE FUNDS YEARS ENDED DECEMBER 31,2005 AND 2004 Business-type Activities - Enterprise Funds Water Sewer 2005 2004 2005 2004 CASH FLOWS FROM OPERATING ACTIVIT1ES Receipts from customers and users $ 217,983 $ 194,642 $ 279,788 $ 250,452 Payments to suppliers (116,732) (11,640) (218,713) (132,338) Payments to employees (57,068) (45,545) (59,189) (46,604) NET CASH PROVIDED BY OPERATING ACTIVITIES 44,183 137,457 1,886 71,510 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers to other funds (40,000) (3,635) Advances from other funds (40,000) Receipt on due from other funds 40,000 Transfers from other funds 24,907 8,704 3,635 NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 24,907 (43,635) 8,704 3,635 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (478,923) (738,954) (74,335) (53,813) Hook up fees and unit charges 75,960 75,451 76,407 64,593 Special assessments received 43,026 81,132 22,932 69,154 Principal paid on bonds (177,000) (31,500) (223,000) (38,500) Interest paid on bonds (8,596) (9,188) (8,596) (11,229) NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (545,533) (623,059) (206,592) 30,205 CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments 22,346 29,659 65,030 52,431 NET INCREASE (DECREASE) IN CASH AND TEMPORARY INVESTMENTS (454,097) (499,578) (130,972) 157,781 CASH AND TEMPORARY INVESTMENTS, JANUARY 1 856,731 1,356,309 2,156,799 1,999,018 CASH AND TEMPORARY INVESTMENTS, DECEMBER 31 $ 402,634 $ 856,731 $ 2,025,827 $ 2,156,799 The notes to the financial statements are an integral part of this statement. -16- Business-type Activities - Enterprise Funds - Continued Recycling Totals 2005 2004 2005 2004 $ $ $ 497,771 $ 445,094 (335,445) (143,978) (116,257) (92,149) 46,069 208,967 (2,777) (42,777) (3,635) (40,000) 40,000 33,611 3,635 (2,777) 30,834 (40,000) (553,258) (792,767) 2,777 155,144 140,044 65,958 150,286 (400,000) (70,000) (17,192) (20,417) 2,777 (749,348) (592,854) 87,376 82,090 (585,069) (341,797) 3,013,530 3,355,327 $ $ $ 2,428,461 $ 3,013,530 -17- CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF CASH FLOWS - CONTlNUED ENTERPRISE FUNDS YEARS ENDED DECEMBER 31, 2005 AND 2004 Business-type Activities - Enterprise Funds Water Sewer 2005 2004 2005 2004 RECONCILIA nON OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ 19,319 $ 13,090 $ (63,690) $ (19,844) Adjustments to reconcile operating income (loss) to net cash provided by operating activities Depreciation and amortization 81,171 76,208 89,396 85,015 (Increase) decrease in assets: Accounts receivable (2,216) 704 (7,655) (4,242) Inventories 4,168 (1,357) Prepaid items (12,011) Increase (decrease) in liabilities: Accounts payable (26,340) 47,099 (32) 187 Contracts payable (33,168) Accrued salaries (2,893) 2,278 (2,887) 2,278 Accrued compensated absences payable 3,804 3,804 Due to other governments 338 (565) (5,039) 8,116 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 44,183 $ 137,457 $ 1,886 $ 71,510 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization of bond discount $ 1,484 $ 297 $ 1,813 $ 363 Capital assets contributed by other funds $ 39,108 $ 372,232 $ $ 15,117 Disposal of capital assets $ 3,731 $ $ 4,241 $ Acquisition of capital assets on account $ $ 33,168 $ $ The notes to the financial statements are an integral part of this statement. -18- Business-type Activities - Enterprise Funds - Continued Recycling Totals 2005 2004 2005 2004 $ $ $ (44,371) $ (6,754) 170,567 161,223 (9,871) (3,538) 4,168 (1,357) (12,011) (26,372) 47,286 (33,168) (5,780) 4,556 7,608 (4,701) 7,551 $ $ $ 46,069 $ 208,967 $ $ $ 3,297 $ 660 $ $ $ 39,108 $ 387,349 $ $ $ 7,972 $ $ $ $ $ 33,168 ..-' -19- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2005 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES A. Reporting Entity The City of Centerville, Minnesota (the City), operates under the "Optional Plan A" form of government as defined in the State of Minnesota statutes. Under this plan, the government of the City is directed by a Council composed of an elected Mayor and four elected Council Members. The Council exercises legislative authority and determines all matters of policy. The Council appoints personnel responsible for the proper administration of all affairs relating to the City. The City has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the primary govemmentto 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 (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the City and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contnbutions 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 measurementfoeus and the accrual basis of accounting. as are the proprietary fund financial statements. Revenues are recorded when eamed 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 foeus 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 collecnble 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 suscepnole 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. -20- CITY OF CENTERVILLE, MINNESOTA NOTES TO '!HE FINANCIAL STATEMENTS DECEMBER 31,2005 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 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 accroal basis, revenue is recorded in the year in which the resources are measurable and become available. Non-exchange transactions, in which the City receives value without directly giving equal value inretum, include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is :first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Deferred revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligtbility requirements are met are also recorded as deferred revenue. On the modified accrual basis, receivables that will not be collected within the available period have also been reported as deferred revenue in the fund financial statements. The 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 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. The Recyclingfund accounts for the activities of the City's recycling collection operations. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of GASB. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfund activity has been eliminated from government-wide financial statements. Exceptions to this general rule are charges between the City's water and sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. -21- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER. 31, 2005 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Amounts reported as program revenues include 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contrIbution, and 3) capital grants and contrIbutions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program. revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from 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 res1ricted and unres1ricted resources are available for use, it is the City's policy to use restricted resources first, then umestricted resources as they are needed. D. Assets, Liabilities and Net Assets or Equity Deposits and Investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with. original maturities of three months or less from the date of acquisition. Cash balances from all funds are pooled and invested. to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. The City may also invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities in (a) above. 3. General obligations of the State of Minnesota or any of its municipalities. 4. Banker's acceptances of Unites States banks eligtble for purchase by the Federal Reserve System. 5. Commercial paper issued by United States banks coIpOratioDS or their Canadian subsidiaries, of highest quality, and maturing in 270 days or less. 6. Repurchase or reverse repurchase agreements with banks that are members ofth.e 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-deaIers. 7. Guaranteed investment contracts (GIC's) issued or guaranteed by United States commercial banks or domestic branches of foreign banks or United States insurance companies if similar debt obligations of the issuer or the collateral pledged by the issuer is in the top two rating categories, or in the top three rating categories for long-term GIC's issued by Minnesota banks. Investments for the City are reported at fair value. The Minnesota Municipal Money Market (4M) fund operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares. Financial statements of the 4M fund can be obtained by contacting Voyageur Asset Management at 100 South Fifth Street Suite 2300, Minneapolis, MN 55402-1240. The City has no formal investment policy. -22~ CITY OF CENTERVILLE, MINNESOTA NOTES TO TIIEFlNANCIAL STATEMENTS DECEMBER 31, 2005 Note 1: SUMMARY OF SIGNIFICANT,ACCOUNTING POIJCIES - 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 2005. The City annually certifies delinquent water and sewer accounts to the County for collection in the following year. Therefore, there bas been no allowance for doubtful' accounts established. Interfund Receivables and Payables Activity between funds that are representative oflendinglborrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (ie., the current portion ofintertimd loans) or "advances to/from other funds" (i.e., the non-current portion ofinterfund loans). All other outstanding balances between funds are reported as "due toIfrom 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 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. Taxes payable on homestead property, as defined by Minnesota statutes, were partially reduced by a market value credit aid. The credit is paid to the City by the State of Minnesota (the State) in lieu of taxes levied against the homestead property. The State remits this credit in two equal installments in October and December each year. Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred revenue liability 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 revenue liability in the fund financial statements. Inventories and Prepaid Items All inventories are valued at cost using the first-inlfirst-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. -23- CITY OF CENTERVILLE, MINNESOTA NOTES TO TIm FINANCIAL STATEMENTS DECEMBER 31,2005 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES - CONTINUED Capital Assets Capital assets, which include property, plant, equipinent 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 backtracking (i.e., estimating the current replacement cost of the infrastructure to be capita1ized 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: Assets Land improvements Other improvements Buildings and improvements System improvements/infrastructure Machinery and equipment Vehicles Other assets Useful Lives in Years 4 to 25 10 to 20 10 to 50 20 to 50 3 to 20 3 to 10 3 to 15 Compensated Absences It is the City's policy to pezmit employees to accumulate earned but unused paid time off benefits to a maximwn of 176 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. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business- type activities or proprietary fund type statement of net assets. Beginning January I, 2003, for governmental funds, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. -24- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2005 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 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 Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. Net Assets Net assets represent the difference be~n assets and liabilities. Net assets are displayed in three components: a. Invested in capital assets, net of related debt - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b. Restricted net assets - Consist of net assets restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c. Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt". Comparative DataIRedassifications Comparative total data for the prior year have been presented IJnly for the individual enterprise funds in the fund financial statements in order to provide an understanding of the changes in the financial position and operations of these funds. Also, certain amounts presented in the prior year have been reclassified in order to be consistent with the current year's presentation. Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABll..ITY 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 August 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 15, the proposed budget is presented to the Council for review. The Council holds public hearings and a final budget is prepared and adopted in early December. The appropriated budget is prepared by fund, function and department. The City's department beads, with the approval of the City Administrator, may make transfers of appropriations within a department Transfers of appropriations between departments require the approval of the Council. The legal level of budgetary control is the department level. Budgeted amounts are as originally adopted, or as amended by the Council. -25- CI1Y OF CENlERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2005 Note2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - CONTINUED B. Excess of Expenditures Over Appropriations For the year ended December 31, 2005, expenditures exceeded appropriations in the following departments (the legal level of budgetary control). Amount General govP.mmP.1tt Elections Planning and zoning Administration Legal and accounting Insurance . Public safety Police protection Fire protection Civil defense Public works Recycling Engineering services Economic development $ 96 3,666 10,977 4,512 1,808 19,670 49,193 1,603 684 39,422 24,984 These over expenditures were funded by lower than expected expenditures in other departments and greater than anticipated revenues. C. Deficit Fund Equity The following fund bad a deficit fund balance as of December 31, 2005: Fund Amount Capital projects TIF District 1-4 $ 5,151 The City plans to fund this deficit with future revenues from tax increments. -26- CITY OF CENTERVILLE, MINNESOTA NOTES TO TIlE FINANCIAL STATEMENTS DECEMBER 31, 2005 Note 3: DETAILED NOTES ON ALL FUNDS A. Deposits and Investments Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City's dep<>sits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. The 4M fund is a customized cash management and investment program for Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M fund is a unique investment alternative designed to address the daily and long term investment needs of Minnesota cities and other municipal entities. Allowable under Minnesota statutes, the 4M fund is comprised of top quality, rated investments. In accordance with Minnesota statutes and as authorized by the Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds (140 percent in the case of mortgage notes pledged). Authorized collateral includes the legal investments descnbed below, as well as certain first mortgage notes, and certain other State or local government obligations. Minnesota statutes require that securities pledged as collateral be held in safekeeping by the City or in a financial institution other than that furnishing the collateral. At year end, the City's carrying amount of deposits was $6,274,739 and the bank balance was $6,338,338. Of the bank balance, $4,436,333 was covered by federal depository insurance or by collateral held by the City's agent in the City's name. The remaining balance of $1,902,005 was collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. As of December 31,2005, 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 Qualityl Time of Carrying Investment Type Ratings (1) Distribution (2) Credit Risk Amount Pooled investments Broker money market N/A N/A N/A $ 167,503 Nonpooled investments U.S. Government Securities AAA More than 3 years 91% 1,715,288 Total investments $ 1.882.791 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. NI A Indicates not applicable or available. -27- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2005 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED At year end, the Cities total cash and temporary investments as shown on the Statement of Net Assets were as follows: Total Carrying amount of deposits Investments Petty cash $ 6,274,739 1,882,791 350 Total $ 8,157,880 B. Receivables A summary of all intergovernmental receivables as of December 31, 2005 is as follows: Fund Governmental activities General County Total $ 43,061 $ 43.061 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the govemmental funds were as follows: Unavailable Unearned General fund Taxes receivable Special assessments receivable Debt service funds Special assessments receivable $ 27,762 13,171 $ Total 859,649 $ 900,582 $ -28- CITY OF CENTERVILLE, MINNESOTA NOTES TO TIiE FINANCIAL STATEMENTS DECEMBER: 31, 2005 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED C. Capital Assets Capital asset activity for the year ended December 31, 2005 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities Capital assets not being depreciated Land $ 1,213,300 $ $ $ 1,213,300 Construction in progress 2,661,158 (2,661,158) Total capital assets not being depreciated 3,874,458 (2,661,158) 1,213,300 Capital assets being depreciated Buildings 1,031,981 1,031,981 Infrastructure 4,329,090 2,784,745 7,113,835 Machinery and equipment 631,017 113,757 (81,462) 663,312 Total capital assets being depreciated 5,992,088 2,898,502 (81,462) 8,809,128 Less accumulated depreciation for Buildings (538,091) (17,571) (555,662) Infrastructure (766,196) (495,179) (1,261,375) Machinery and equipment (234,336) (52,129) 27,417 (259,048) Total accumulated depreciation (1,538,623) (564,879) 27,417 (2,076,085) Total capital assets being depreciated, net 4,453,465 2,333,623 (54,045) 6,733,043 Governmental activities capital assets, net $ 8.327 .923 $ 2.333.623 $ (2.715.203) $ 7 .946.343 -29- CITY OF CENlERVllLE, MINNESOTA NOTES TO TIIE FINANCIAL STATEMENTS DECEMBER 31,2005 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Beginning Ending , Balance Increases Decreases Balance Business-type activities Capital assets not being depreciated Construction in progress $ 246,105 $ $ (246,105) $ Capital assets being depreciated Infrastructure 5,259,005 1,996,191 7,255,196 Machine:ty and equipment 104,975 201,726 (36,884) 269,817 Total capital assets being depreciated 5,363,980 2,197,917 (36,884) 7,525,013 Less accumulated depreciation for Infrastructure (1,136,744) (153,965) (1,290,709) Machinery and equipment (34,370) (13,305) 9,130 (38,545) Total accumulated depreciation (1,171,114) (167,270) 9,130 (1,329,254) Total capital assets being depreciated, net 4,192,866 2,030,647 (27,754) 6,195,759 Business-type activities capital assets, net $ 4.438,971 $ 2,030,647 $ (273,859) $ 6,195.759 Depreciation expense was charged to functions/programs of the City as follows: Governmental activities General government $ 29,176 Public safety 6,009 Public works 522,056 Culture and recreation 7,638 Total depreciation expense - governmental activities $ 564.879 Business-type activities Warer $ 79,687 Sewer 87 ,583 Total depreciation expense- business-type activities $ 167,270 -30- CITY OF CENTERVILLE, MINNESOTA NOTES TO TIIEFINANCIAL STATEMENTS DECEMBER 31,2005 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 levied on the properties benefiting from the improvements. Some issues, however, are partly financed by ad vaIoremtax levies. All special assessment debt is backed by the full faith and credit of the City. Bach year the combined assessment and tax levy equals 105 percent of the amount required for debt service. The excess of 5 percent is to cover any delinquencies in tax or assessment payments. Description G.O. Improvement Bonds of 2000 G.O. Improvement Bonds of 2001 G.O. Improvement Bonds of 2002 G.O. Temporary Improvement Bonds of 2003 G.O. Temporary Improvement Bonds of2004A G.O. Improvement Bonds of 2004B G.O. Improvement Bonds of 2005 Balance Authorized Interest Issue Maturity at and Issued Rate Date Date YearEnd $ 650,000 4.75.5.25 % 11/01/00 02/01/11 $ 90,000 990,000 3.50 - 4.45 11/01/01 02101/13 835,000 635,000 3.00.4.10 10/31/02 02/01/14 580,000 740,000 1.50 07/01/03 740,000 07/01/06 780,000 1.75 04/01/04 780,000 04/01/07 2,200,000 2.25 - 4.50 06101/04 2,200,000 02/01/20 Total General Obligation Improvement Bonds 827,750 3.50 - 4.30 04/27/05 827,750 $ 6.052.750 01/01/21 -31- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL S'l';\.IEMENTS DECEMBER 31,2005 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED 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 2006 $ 1,042,000 $ 195,903 $ 1,237,903 2007 1,098,750 168,114 1,266,864 2008 333,750 150,318 484,068 2009 345,500 138,452 483,952 2010 367,250 125,379 492,629 2011 - 2015 1,644,500 408,628 2,053,128 2016 - 2020 1,221,000 132,041 1,353,041 Total $ 6,052,750 $ 1.318,835 $ 7,371.585 Changes in Long-term Liabilities. During the year ended December 31, 2005, the following changes occurred in noncurrent liabilities: Beginning Balance Increases Decreases Ending Balance Due Within One Year Governmental activities Bonds payable General obligation bonds $ 5,710,000 $ 827,750 $ (485,000) $ 6,052,750 $ 1,042,000 Compensated absences payable 19,419 37,848 (26,788) 30,479 30,479 Governmental activities long-term liabilities $ 5,729,419 $ 865,598 $ (511.788) $ 6.083,229 $ 1,072,479 Business-type activities Bonds payable General obligation $ 400,000 $ revenue bonds Con:ipensated absences payable 5,648 $ (400,000) $ $ 8,681 (6,721) 7,608 7.608 Business-type activities long-term.1iabilities $ 405.648 $ 8,681 $ (406.721) $ 7,608 $ 7.608 -32- CITY OF CENTERVlLLE, MlNNESOTA NOTES TO THE FINANCIAL STATBMENTS DECEMBER-31,2005 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED E. Interfund Transfers The following is a schedule ofinterfund transfers as of December 31,2005: Transfer in Nonmajor General Debt Service Governmental Fund Fund Funds Funds Transfer out General $ $ 142,464 $ 7,733 Nonmajor governmental 57,778 382,937 614 Debt Service 5,236 Recycling 2,777 Water 40,000 Total $ 65.791 $ 565.401 $ 8.347 Transfer in Fund Sewer Water Total Transfer out General $ $ $ 150,197 Nonmajor governmental 441,329 Debt Service 8,704 24,907 38,847 Recycling 2,777 Water 40,000 Total $ 8.704 $ 24.907 $ 673.150 A transfer of $41 ,009 from the General fund to the Parkview Development fund was made to provide prepayment of outstanding bonds. Transfers from the Water and Sewer funds were completed for project costs. All other transfers were completed to close projects that have completed their purpose. F. Tax Increment Districts The City is the administering authority for the following tax increment financing district as of December 31, 2004: Tax Increment District No. 1-4 Type of district Economic Year established 8/24/1995 Tax capacity Original Cun'ent $ 4,811 34.500 Captured - retained $ 29.689 -33- CITY OF CENTERVILLE, MINNESOTA NOTES TO TIIE FINANCIAL STATEMENTS DECEMBER 31,2005 Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE A. PIan Description All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public. Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF), which is a cost-sharing, multiple-employer retirement plan. The pIan is established and administered in accordance with Minnesota statutes, chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic PIan. Coordinated PIan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated PIan. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligtble members. Benefits are established by Minnesota statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and years of credit at termination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual fonnula (Method 1) or a level accrual fonnula (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 membets and 1.7 percent for Coordinated Plan members for each year of service. For all PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. 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 normal annuity is a lifetime annuity that ceases upon the death of the retiree - ~ no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contnbutions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF. That report may be obtained on the web at www.mnpera.org, by writing to PERA. 60 Empire Drive, Suite 200, St Paul, Minnesota 55103-1855 or by calling 651-296-7460 or 1-800-652-9026. B. Funding Policy Minnesota statutes, chapter 353 sets the rates for employer and employee contnbutions. These statutes are established and amended by the State legislature. The City makes annual contnbutions to the pension plans equal to the aJIlOunt required by Minnesota statute. PERF Basis PIan members and Coordinated Plan members are required to contnbute 9.10 percent and 5.10 percent, respectively, of their annual covered salary. The City is required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan PERF members and 5.53 percent for Coordinated Plan PERF members. The City's contnbutions to the PERF for the year ended December 31, 2005. 2004 and 2003 were $26,421, 22,756, and $23.440, respectively. The City's contributions were equal to the contractually required contnbutions for each year as set by Minnesota statutes. -34- CITY OF CENTERVILLE, MINNESOTA . NOTES TO TIiE FINANCIAL STATEMENTS.. DECEMBER 31,2005 Note S: JOINT POWERS AGREEMENT - CENTENNIAL FIRE DISTRICT The Centennial Fire District (the District) was formed under the authority of Minnesota statutes 471.59 in 1985. Its purpose is to provide for joint municipal fire protection and service to the cities of centerville, Circle Pines, and Lino Lakes. The District is managed through a three tier system consisting of a fire chief, a steering committee, and the Councils of the member cities. The fire chief is an appointed position. Each member city appoints two commissioners. One of these commissioners must be an elected official of the city. The accounting policies of the District conform to accounting principles generally accepted in the United Sates of America as applicable to governmental units. Selected financial information is shown below and on the following page for the most recent year of audited information, which is December 31, 2004: Total assets Total liabilities Total equity Total revenues Total expenditures Total other financing sources (uses) Governmental Funds Totals Capital General Projects 2004 2003 $ 22,253 $ 206,355 $ 228,608 $ 269,178 81,864 81,864 86,235 (59,611) 206,355 146,744 182,943 557,261 557,261 589,889 625,379 625,379 586,986 Government-wide 2004 2003 $ 913,569 $ 948,665 99,680 100,124 813,889 848,541 692,759 651,333 658,107 690,816 Total assets T otal1iabilities Total net assets Total program. expenses Total general revenues 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 1741 Lake Drive, Lino Lakes, MN 55014. -35- CITY OF CENTERVILLE, MINNESOTA NOTES TO 1HE FINANCIAL STATEMENTS DECEMBER 31, 2005 Note 6: OTHER INFORMATION A. Risk Management The City is exposed to various risks of loss related to torts; theft ot: 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 2 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 City does not have any debt subject to the 2 percent limit Note 7: COMMITMENTS In 1997, the City entered into a Joint Powers agreement with the Anoka County Housing and Redevelopment Authority (ACHRA) to provide senior housing within the City. The ACHRA has issued $1,290,000 of Housing Development Revenue Bonds to provide for construction costs of the project The City has reserved $71,631 in the Sewer enterprise fund in accordance with the agreement with ACHRA. This amount is to be used in the event revenue is not sufficient to cover operating expenses and debt service. The City would also be liable for any deficit above the amount reserved. This commitment exists until December 31, 2012. No expenses were incurred relating to the commitment in 2005. -36- COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF CENTERVILLE CENTERVILLE,MlNNESOTA . YEAR ENDED DECEMBER 31,2005 CITY OF CENTERVllLE, MINNESOTA NONMAJOR GOVERNMENTAL FUNPS . COMBINING BALANCE SHEET DECEMBER 31,2005 Special Revenue Funds 614 202 CoIDIIDJDity Development Cable T.V. Block Grant Total ASSETS Cash and temporary investments (deficits) $ 10,337 $ (4,596) $ 5,741 Receivables Accrued interest 17 17 Delinquent taxes Accounts 6,068 6,068 Due from other governments 37,063 37,063 TOTAL ASSETS $ 16,422 $ 32,467 $ 48,889 LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable $ $ 6,865 $ 6,865 Contracts payable Accrued salaries payable Compensated absences payable TOTAL LIABILITIES 6,865 6,865 FUND BALANCES (DEFICITS) Umeserved Undesignated 16,422 25,602 42,024 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $ 16,422 $ 32,467 $ 48,889 -37- $ 334,937 $ 118 $ 12,423 $ 206 1,063 1,269 233,802 $ 18,471 $ 118 99,553 18,471 (5,151) $ 334,937 $ 99,671 $ 12,423 $ 235,071 $ -38- 13,320 $ ,- $ $ CITY OF CENTERVILLE, MINNESOTA NONMAJOR GOVERNMENTAL FUND COMBINING BALANCE SHEET - CONTINUED DECEMBER 31, 2005 Capital Projects Funds - Continued 440 441 442 The Shores ASSETS Cash and temporary investments ( deficits) Receivables Accrued interest Delinquent taxes Accounts Due from other governments $ TOTAL ASSETS $ LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable Contracts payable Accrued salaries payable Compensated absences payable $ TOTAL LIABILITIES FUND BALANCES (DEFICITS) Unreserved Undesignated TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $ .39- Eagle Pass (phase 2) $ $ $ $ Pheasant Marsh (phase 2) $ $ $ $ Capital Projects Funds - Continued 443 445 446 447 448 Total Centerville Hunter's Nonmajor Pheasant Peltier Hunter's Town Office Crossing Governmental Marshm Preserve Crossing Park 3rd Addition Total Funds $ 7,275 $ $ 68,148 $ 8,370 $ 78 $ 769,960 $ 775,701 13 120 15 1,416 1,433 97 97 7,968 14,036 37,063 $ 7,288 $ $ 68,268 $ 8,385 $ 78 $ 779,441 $ 828,330 $ 1,212 $ $ 2,061 $ $ $ 21,862 $ 28,727 11,899 11,899 11,899 206 206 1,063 1,063 1,212 13,960 35,030 41,895 6,076 54,308 8,385 . 78 744,411 786,435 $ 7,288 $ $ 68,268 $ 8,385 $ 78 $ 779,441 $ 828,330 -40- CITY OF CENTERVlLLE, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) YEAR ENDED DECEMBER 31,2005 Special Revenue Funds 614 202 Community Development Cable T.v. Block Grant Total REVENUES Tax increments $ $ $ Intergovernmental 73,413 73,413 Interest on investments (121) (121) Miscellaneous Refunds and reimbursements 6,068 6,068 Park dedication fees Other revenues TOTAL REVENUES 5,947 73,413 79,360 EXPENDITURES Current Public works Personal services Supplies Other services and charges Culture and recreation Personal services 2,300 2,300 Supplies 131 131 Other services and charges 126 126 Capital outlay Public works Culture and recreation 6,611 6,611 Economic development 47,811 47,811 TOTAL EXPENDlTIJRES 9,168 47,811 56,979 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (3,221) 25,602 22,381 OTHER FlNANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES (3,221) 25,602 22,381 FUND BALANCES (DEFICITS), JANUARY 1 19,643 19,643 FUND BALANCES (DEFICITS), DECEMBER 31 $ 16,422 $ 25,602 $ 42,024 -41- Capital Projects Funds 402 412 414 415 317 408 438 Municipal Street Pedestrian Stonn TIF 21st Avenue Pheasant Park Improvement Trail Ways WatJ:r District 1-4 Improvements Marsh $ $ $ $ $ 39,261 $ $ 9,714 (586) (122) 123 (82) 3,984 17,228 2,540 51,959 29,482 (586) (122) 52,082 39,179 3,984 11,903 192 227 CITY OF CENTERVILLE, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - CONTINUED YEAR ENDED DECEMBER 31,2005 Capital Projects Funds - Continued 440 441 442 The Shores Eagle Pass (phase 2) Pheasant Marsh (phase 2) REVENUES Taxes Intergovernmental Interest on investments Miscellaneous Refunds and reimbursements Park dedication fees Other revenues $ $ $ 2,070 2,066 TOTAL REVENUES 2,070 2,066 EXPENDIlURES Current Public works Personal services Supplies Other services and charges Culture and recreation Personal services Supplies Other services and charges Capital outlay Public works Culture and recreation Economic development 251 1,634 TOTAL EXPENDITURES 251 1,634 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (251) 2,070 432 OTHER FINANCING SOURCES (USES) Transfers in Transfers out (57,778) 614 (57,327) 251 TOTAL OTHER FINANCING SOURCES (USES) 251 (57,778) (56,713) NET CHANGE IN FUND BALANCES (55,708) (56,281) FUND BALANCES (DEFICITS), JANUARY 1 55,708 56,281 FUND BALANCES (DEFICITS), DECEMBER 31 $ $ $ -43- Capital Projects Funds - Continued 443 445 446 447 448 Total Centerville Hunter's Nonmajor Pheasant Peltier Hunter's Town Office Crossing Governmental Marsh ill Preserve Crossing Park 3rd Addition Total Funds $ $ $ $ $ $ 39,261 $ 39,261 73,413 (77) 6,029 2,190 (63) 25,246 25,125 6,068 17,228 17,228 57 3,484 12,320 70,360 70,360 (77) 6,029 2,247 3,421 12,320 152,095 231,455 11 ,903 11,903 192 192 227 227 2,300 131 4,353 4,479 2,812 907 54,512 60 12,242 372,538 372,538 7,533 14,144 37,345 85,156 2,812 907 54,512 60 12,242 434,091 491,070 (2,889) 5,122 (52,265) 3,361 78 (281,996) (259,615) 8,347 8,347 (165,225) (441,329) (441,329) (165,225) (432,982) (432,982) (2,889) (160,103) (52,265) 3,361 78 (714,978) (692,597) 8,965 160,103 106,573 5,024 1,459,389 1,479,032 $ 6,076 $ $ 54,308 $ 8,385 $ 78 $ 744,411 $ 786,435 -44- -45- CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUNn-BALANCES- BUDGET AND ACTUAL - CONTINUED YEAR ENDED DECEMBER 31, 2005 (With comparative actual amotmts for the year ended December 31, 2004) 2005 2004 Variance with Budgeted AmOtmts Final Budget - Actual Positive Actual Original Final Amounts (Negative) Amounts EXPENDITURES Current General government Mayor and Cotmcil Personal services S 21,500 $ 21,500 $. 19,336 S 2,164 S 14,856 Other services and charges 1,200 1,200 626 574 473 Total 22,700 22,700 19,962 2,738 15,329 Elections Personal services 3,505 Supplies 96 (96) 379 Total 96 (96) 3,884 Planning and zoning Other services and charges 6,000 6,000 9,666 (3,666) 6,824 Administration Personal services 231,783 231,783 211,739 20,044 227,839 Supplies 6,500 6,500 8,581 (2,081) 6,159 Other services and charges 55,050 55,050 83,990 (28,940) 82,636 Total 293,333 293,333 304,310 (10,977) 316,634 Assessing Other services and charges 18,000 18,000 16,048 1,952 17,703 Legal Other services and charges 102,000 102,000 106,512 (4,512) 94,022 Insurance Other services and charges 2,000 2,000 3,808 (1,808) 2,071 General government building Personal services 859 (859) Supplies 1,300 1,300 93 1,207 878 Other services and charges 29,800 29,800 28,952 848 23,868 Total 31,100 31,100 29,904 1,196 24,746 Total general government 475,133 475,133 490,306 (15,173) 481,213 -46- CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED YEAR ENDED DECEMBER 31,2005 (With compaxative actual amOlmts for the year ended December 31, 2004) 2005 2004 Variance with Budgeted Amounts Final Budget - Actual Positive Actual Original Final Amounts (Negative) Amounts EXPENDITURES - CONTINUED Current - Coritinued Public safety Police protection Other services and charges $ 550,475 $ 550,475 $ 570,145 $ (19,670) $ 489,246 Fire protection Remittance to relief association 100,000 100,000 149,114 (49,114) 153,074 Other services and charges 87,393 87,393 87,472 (79) 82,677 Total 187,393 187,393 236,586 (49,193) 235,751 Building inspection Personal services 143,966 143,966 141,089 2,877 101,261 Supplies 1,800 1,800 1,455 345 3,727 Other services and charges 14,450 14,450 11,468 2,982 8,001 Total 160,216 160,216 154,012 6,204 112,989 Civil defense Other services and charges 2,100 2,100 3,703 (1,603) 2,884 Animal control Other services and charges 1,500 1,500 1,197 303 1,321 Total public safety 901,684 901,684 965,643 (63,959) 842,191 Public works Streets Personal services 136,882 136,882 108,333 28,549 90,563 Supplies 34,400 34,400 8,033 26,367 8,818 Other services and charges 140,145 140,145 65,389 74,756 170,255 Total 311,427 311,427 181,755 129,672 269,636 Recycling Personal services 3,100 3,100 3,355 (255) 3,168 Supplies 400 400 38 362 Other services and charges 1,500 1,500 2,291 (791) 873 Total 5,000 5,000 5,684 (684) 4,041 Engineering services Other services and charges 15,500 15,500 54,922 (39,422) 20,022 Total public works 331,927 331,927 242,361 89,566 293,699 -47- CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTIJAL - CONTINUED YEAR ENDED DECEMBER 31, 2005 (With comparative actual amounts for the year ended December 31, 2004) 2005 2004 Variance with Budgeted Amounts Final Budget . Actual Positive Actual Original Final Amounts (Negative) Amounts EXPENDITURES - CONTINUED Current - Continued Culture and recreation Parks and recreation Personal services $ 29,678 $ 29,678 $ 19,892 $. 9,786 $ 24,230 Supplies 5,308 5,308 3,778 1,530 5,523 Other services and charges 37,100 37,100 27,038 10,062 34,445 Total culture and recreation 72,086 72,086 50,708 21,378 64,198 Economic development Supplies 500 500 500 433 Other services and charges 5,800 5,800 31,284 (25,484) 7,833 Total economic development 6,300 6,300 31,284 (24,984) 8,266 Miscellaneous Other services and charges 19,000 19,000 18,024 976 18,103 Total current expenditures 1,806,130 1,806,130 1,798,326 7,804 1,707,670 Capital outlay General government 239,870 239,870 25,390 214,480 113,638 Public works 88,612 (88,612) 56,673 Total capital outlay 239,870 239,870 114,002 125,868 170,311 TOTAL EXPENDITURES 2,046,000 2,046,000 1,912,328 133,672 1,877,981 EXCESS OF REVENUES OVER EXPENDITURES 61,900 61,900 250,670 188,770 126,205 OTIIER FINANCING SOURCES (USES) Sale of capital assets 66,989 66,989 110,000 Transfers in 40,000 40,000 65,791 25,791 14,969 Transfers out (102,000) (102,000) (150,197) (48,197) (3,452) TOTAL OTHER FINANCING SOURCES (USES) (62,000) (62,000) (17,417) 44,583 121,517 NET CHANGE IN FUND BALANCES (100) (100) 233,253 233,353 247,722 FUND BALANCES, JANUARY 1 1,316,103 1,316,103 1,316,103 1,068,381 FUND BALANCES, DECEMBER 31 $ 1,316,003 $ 1,316,003 $ 1,549,356 $ 233,353 $ 1,316,103 -48- CITY OF CENfERVILLE, MlNNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER3!,2oo5 306 308 312 325 324 G.O. Elementary Improvement School Mound 21st Avenue Bonds of Water Parkview Trail Improvements 2004B Extension Development ASSETS Cash and temporary investments $ 21,863 $ 39,619 $ 448,987 $ $ Receivables Accrued interest 38 68 758 Special assessments Current 9,863 Delinquent Deferred 6,225 499,995 6,096 TOTAL ASSETS $ 21,901 $ 45,912 $ 959,603 $ $ 6,096 LIABILITIES AND FUND BALANCES LIABILITIES Deferred revenue $ $ 6,225 $ 499,995 $ $ 6,096 FUND BALANCES Reserved for debt service 21,901 39,687 459,608 TOTAL LIABILITIES AND FUND BALANCES $ 21,901 $ 45,912 $ 959,603 $ $ 6,096 -49- 336 327 342 345 346 309 G.O. G.O. G.O. G.O. Temporaxy G.O. Joint Improvement Improvement Improvement Improvement Improvement Police Total.. Bonds of Bonds of Bonds of Bonds of Bonds of Station Debt Service 2000 2001 2002 2003 2004A 2005A Funds $ 146,406 $ 616,122 $ 838,075 $ 635,449 $ 545,332 $ $ 3,291,853 258 1,085 1,476 1,119 960 5,762 9,863 18,522 1,453 19,975 11,449 128,255 207,629 859,649 $ 158,113 $ 617,207 $ 839,551 $ 783,345 $ 755,374 $ $ 4,187,102 $ 11,449 $ $ $ 128,255 $ 207,629 $ $ 859,649 146,664 617,207 839,551 655,090 547,745 3,327,453 $ 158,113 $ 617,207 $ 839,551 $ 783,345 $ 755,374 $ $ 4,187,102 -50- CITY OF CENTERVILLE, MINNESOTA DEBT SERVICE FUNDS COMBINING STAlEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31, 2005 306 308 312 325 324 G.O. Elementary Improvement School Mound 21st Avenue Bonds of Water Parkview 'frail Improvements 2004B Extension Development REVENUES Special assessments $ $ 1,091 $ 122,262 $ 16,603 $ 2,365 Interest on investments (111) (172) 9,057 (39) 5,711 TOTAL REVENUES (111) 919 131,319 16,564 8,076 EXPENDITURES Capital outlay Debt service Principal 340,000 Interest and other 99,468 12,614 TOTAL EXPENDITURES 99,468 352,614 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (111) 919 31,851 16,564 (344.538) OTHER FINANCING SOURCES (USES) Transfers in 102,000 40,000 41,009 Bonds issued Transfers out (15,825) (17,786) (5,236) TOTAL OTHER FINANCING SOURCES (USES) 86,175 22,214 35,773 NET CHANGE IN FUND BALANCES (111) 919 118,026 38,778 (308,765) FUND BALANCES (DEFICITS). JANUARY 1 22,(H2 38,768 341,582 (38,778) 308,765 FUND BALANCES, DECEMBER 31 $ 21,901. $ 39.687 $ 459,608 $ $ -51- 336 327 342 345 346 309 G.O. G.O. G.O. G.O. Temporary G.O. Joint Improvement Improvement Improvement Improvement Improvement Police Total Bonds of Bonds of Bonds of . Bonds of Bonds of Station Debt Service 2000 2001 2002 2003 2004A 2005A Funds $ 2,867 $ $ $ 96,282 $ 300,703 $ $ 542,173 4,888 15,459 22,652 13,865 7,090 78,400 7,755 15,459 22,652 110,147 307,793 620,573 827,750 827,750 10,000 80,000 55,000 485,000 5,293 35,065 21,545 17,053 14,053 205,091 15,293 115,065 76,545 17,053 14,053 827,750 1,517,841 (7,538) (99,606) (53,893) 93,094 293,740 (827,750) (897,268) 160,454 56,713 165,225 565,401 827,750 827,750 (38,847) 160,454 56,713 165,225 827,750 1,354,304 (7,538) 60,848 2,820 258,319 293,740 457,036 154,202 556,359 836,731 396,771 254,005 2,870,417 $ 146,664 $ 617,207 $ 839,551 $ 655,090 $ 547,745 $ $ 3,327,453 -52- CITY OF CENTERVILLE, MINNESOTA TAX AND SPECIAL ASSESSMENT LEVIES AND COlLECTIONS DECEMBER31,2005 TAX LEVIES AND COLLECTIONS Percentage Collection Percent Collection ofTotal Total of Current of Levy of Prior Total Collections Year Levy Years' Levy Collected Years' Levy Collections to Levy 1996 $ 531,775 $ 520,523 97.88 % $ 5,077 $ 525,600 98.84 % 1997 536,082 532,625 99.36 929 533,554 99.53 1998 562,007 557,814 99.25 4,422 562,236 100.04 1999 762,130 748,136 98.16 18,259 766,395 100.56 2000 985,009 968,826 98.36 13,933 982,759 99.77 2001 1,210,000 1,186,697 98.07 14,048 1,200,745 99.24 2002 1,480,623 1,458,801 98.53 17,986 1,476,787 99.74 2003 1,480,623 1,363,522 92.09 16,481 1,380,003 93.20 2004 1,539,329 1,416,636 92.03 36,992 1,453,628 94.43 2005 1,700,000 1,590,170 93 :54 24,677 1,614,847 94.99 SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Percentage Collection Percent Collection of Total Total of Current of Levy of Prior Total Collections Year Levy Years Levy Collected Years' Levy Collections to Levy 1996 $ 93,420 $ 91,836 98.30 % $ 5,904 $ 97,740 104.62 % 1997 175,539 130,529 74.36 1,614 132,143 75.28 1998 116,286 110,705 95.20 42,760 153,465 131.97 1999 273,814 259,003 94.59 55,058 314,061 114.70 2000 151,401 141,190 93.26 2,414 143,604 94.85 2001 261,982 252,397 96.34 22,385 274,782 104.89 2002 177,893 169,966 95.54 8,725 178,691 100.45 2003 132,977 126,865 95.40 5,911 132,776 99.85 2004 175,670 153,399 87.32 9,771 163,170 92.88 2005 269,966 249,037 92.25 12,767 261,804 96.98 -53- CITY OF CENTERVILLE. MINNESOTA SUMMARY FINANCIAL REPORT REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTAL FUNDS YEARS ENDED DECEMBER 31, 2005 AND 2004 Percent Total Total Increase 2005 2004 (Decrease) REVENUES Taxes $ 1.654,109 $ 1,515.765 9.13 % Licenses and permits 223,481 234.463 (4.68) Intergovernmental 254,274 192,554 32.05 Charges for services 748 2.346 (68.12) Fines and forfeitures 34,316 23.202 47.90 Special assessments 542,173 724.247 (25.14) Interest on investments 127.891 139,088 (8.05) Miscellaneous 177,257 177 ,430 (0.10) TOTAL REVENUES $ 3.014.249 $ 3,009,095 0.17 % Per Capita 783.33 825.77 (5.14) EXPENDITURES Current General government $ 490,306 $ 481,213 1.89 % Public safety 965,643 842,191 14.66 Public works 254,683 293,699 (13.28) Culture and recreation 57,618 66,355 (13.17) Economic development 31.284 8,266 278.47 Miscellaneous 18,024 18,103 (0.44) Capital outlay General government 25,390 170,311 (85.09) Public safety 827,750 Public works 461,150 2,794,158 (83.50) Culture and recreation 14,144 Economic development . 85,156 38,186 123.00 Debt service Principal 485,000 565,000 (14.16) Interest and other charges 205,091 118,450 73.15 TOTAL EXPENDITURES $ 3.921.239 $ 5,395.932 (27.33) % Per Capita 1,019.03 1,480.77 (31.18) Total Long-term Indebteness $ 6,052,750 $ 5,710,000 6.00 % Per Capita 1,572.96 1,566.96 0.38 General Fund Balance - December 31 $ 1,549,356 $ 1,316,103 17.72 % Per Capita 402.64 361.17 11.48 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 St, Centerville, MN 55038. Questions about this report should be directed to John Meyer, Finance Director at (651) 429-3232. -54- TIllS PAGE IS LEFT BLANK INTENTIONALLY OTHER REPORTS CITY OF CENTERVILLE CENTERVILLE, MlNNESOTA YEAR ENDED DECE~ER31,2005 GraDdview Square 5201 Eden Avenue Suite 370 Edina. MN 55436 REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and Council City of Centerville, Minnesota We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City ofCentervi11e; Minnesota (the City) as of and for the year ended December 31, 2005, which collectively comprise the City's basic financial statements and have issued our report thereon dated May 4, 2006. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minnesota Legal Complilmce Audit Guide for Local Government, pronwlgated by the Minnesota Office of the State Auditor pursuant to Minnesota statute, section 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures, as we considered necessary in the circumstances. The Minnesota Legal Complilmce Audit Guide for Local Government covers six main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements and miscellaneous provisions. Our study included all of the listed categories. The results of our tests indicate that for the items tested, the City complied with the material terms and conditions of applicable legal provisions except finding 2005-2 as noted in the Schedule of Findings. This report is intended solely for the information and use of the Council, management, others within the City and the Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. (JLb fuJL ~ IltJ May 4, 2006 Minneapolis, Minnesota ABDO, EICK & MEYERS, LLP Certified Public Accountants -55- 952.835.9090 . Fax 952.835.3261 www.aemcpas.com ABDO ~ EICK & . MEYERSup Certified Public Aaxwntants & Consu/Jants Grandview Square 5201 Eden Avenue Suite 370 Edina, MN 55436 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS Honorable Mayor and 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 remaining fund information of the City of Centerville, Minnesota (the City), as of and for the year ended December 31, 2005 which collectively comprise the City's basic financial statements and have issued our report thereon dated May 4, 2006. We conducted our audit in accordance with auditing standards generally accepted in the United States of America In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions, reported as finding 2005-1 in the schedule of findings. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect the City's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might bereportab1e conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition descnbed above is not a material weakness. This report is intended solely for the information and use of the Council, management, others within the City and the Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. (JLbfWL ~/Ul May 4, 2006 Minneapolis, Minnesota ABDO, EICK & MEYERS, LLP Certified Publk Accountants -56- 952.835.9090 · Fax 952.835.3261 WWW.aeJDcpa&.COlD TIllS PAGE IS LEFT BLANK INTENTION ALL y Findin~ 2005-1 2005-2 CITY OF CENTERVILLE, MINNESOTA SCHEDULE OF. FINDINGS DECEMBER 31,2005 Descrlption Segregation of Duties Our study and evaluation disclosed that because of the limited size of your office staff, the City bas limited segregation of duties. A good internal control structure contemplates and adequate segregation of duties so that no one individual handles transactions from inception to completion. While we recognize that the City is not large enough to permit an adequate segregation of duties in all respects, it is important that you be aware of this reportable condition. Mll1Iagement Response Management bas implemented specific internal control policies to address segregation of duties issues. The City Council approved a resolution in 2005 that addressed some llJ'eas of1imi1ation. The City will continue to review its systems annually to try to improve internal control. Broker Certifications Minnesota statute I 18.A04 subdivision 9, requires the City to obtain broker certification from investment brokers annually. The 2005 broker certifications were not completed. Management Response This was an oversight, and will be monitored more closely in the future. -57- Dear Mayor and City Council of Centerville, The Centerville Lions are requesting several City Permits for the 2006 Fete des Lacs. We would like to ask those permit fees be waived by City Council, to the Centerville Lions Club, a non-profit organization in Centerville. We're asking for the following permits in our event application. Noise: Laurie LaMotte Park, Friday August 4th, 8am to 11 pm. Laurie LaMotte Park, Saturday August 5th, 8am to Midnight Laurie LaMotte Park, Sunday August 6th, 8am to 6pm 3.2 Malt Liquor: Laurie LaMotte Park, Friday August 4th, lOam to I1pm. Laurie LaMotte Park, Saturday August 5th, lOam to 11:30pm. Laurie LaMotte Park, Sunday August 6th, lOam to 6pm Fireworks: Laurie LaMotte Park, Friday August 4th.. Laurie LaMotte Park, Saturday August 5th. Gambling: Laurie LaMotte Park, Sunday August 6th. We appreciate your help and support for this years City Festival. Thank you, Greg Kieselhorst 2006 "Fete des Lacs" Director Centerville Lions Secretary %tJJ /2. erviUe CJIt~~1851 Centerville Special Event Permit Application 1. TITLE, PURPOSE, AND BRIEF DESCRIPTION OF EVENT: 2006 "Fete des Lacs" New Application: _X_ Renewal of or Change in Application: CONTACT PERSON: Greg Kieselhorst TELEPHONE: 651-653-1833 OR 612-221-9122 2. IDENTIFYING INFORMATION: Attach a written cxnnm:unication from the organi7.tdion(s) in whose name the event will be advertised which authorizes you, the applicant, to apply for this special event permit on its/their behalf. Applicant's Name: _Greg Kieselhorst Address: 7155 Brian Drive Centerville. MN 55038 Mailing Address: Same Affiliation: Centerville Lions Club Day Phone: _612-221-9122 Evening Phone: Emergency Phone: 612-221-9141 Title: ~ 651-653-1833 3. EVENT PRINCIPALS: Following, please list the names, addresses and telephone nmnbers of all the principals involved in any of the proposed special event Include professional event organizers, event promoters, financial underwriters, commercial sponsors, charitable agencies for whose benefit the event is being produced, the org;mhation(s) in whose name the event is being advertised, and all others administIatively, financially and org9I1i7JltionaUy involved as principals in the production of the proposed special event. Make additional copies of the following as needed to include as of the principals involved in the proposed special event. Name: Centerville Lions Club OrganizationlBusinessl Agencyl Affiliation: Lions IntematioOJl Is this a non-profit organization? _X_ Yes No If you are making application under non-profit status, proof Qf noft1)fOfit status 1Il!~ be At1aChed to this Wication Non-Profit status should be a file, otherwise it will be provided. Mailing Address: Same Day Phone: _Same Evening Phone: Same Title and functional responsibility with regard to the event: Lions Secretary, as part of said duties permit applications and insurance add-ons etc. Page 1 of 10 ffi 4. REQUESTED EVENT COMPONENTS: Date requested: _August ~ to 7th, 2006 Alternate date: None_ Requested hours of operation: _9am (a.m./p.m.) To: _12pm (a.m./p.m.) Set up beginning date and time: August 2nd, 2004 Complete dismantle date and time: August 9th, 2004 Describe the number and type of animals (ifany) to be used in this event: None Attach a draft of the entry form for participants and/or spectators. Anticipated number of participants: _100_ Spectators: _2,000+_ 5. INSURANCE: Received and attached from T J Adams Group Ins. Attach to this application either an insurance policy or a certificate of insurance including the policy number, amount, and the provisions that the City of Centerville is included as an additional insured. (please note that insurance requirements depend upon the risk level of the event. Also, if your event can be classified as first amendment expressive activity, insurance requirements can be waived under certain circumstances.) 6. SANITATION: Please see note after a deposit of$500. Attach your "Plan for clean-uplMaterial Preservation". Include number, type and location of trash containers to be provided for the event. Indicate who and how man will be responsible for emptying and cleaning up around containers during the event. Indicate who and how many will be responsible for cleaning up after anitrulls if they are present during the event. Indicate who and how many will be responsible for cleaning up after the event. Describe the mnnber, type and location ofportBble toilets to be provided for the event (or permanent toilets to be used in the event.) Include any other plan you have for ensuring post-event cleanliness and material preservation of city facilities, equipment, premises and streets. A deoosit of 5500 will be reouired for dean-uo and restoration. If Ol'emUes are left in satisfactorv condition. this deoosit will be refunded in fuR foUowine insoedion. Waste Management is donating trash containers to be used by participants. The Lions Club will clean up any left gaIbage. Please waive deposit, a good standing letter can be provided from Mainstreet Bank in needed. 7. LOCATION: Laurie LaMotte Park in Centerville Please attach a map of your event land design. Check off below items that apply to your event and indicate them on the attached map. Use, where necessary, a "to scale" drawing. A _ If a route is involved, the beginning and finish area with arrows. B. _ If a route is involved, the places where buses, autos or other motorized vehicles need to be considered. C. _ If a route is involved, attach separate maps giving two or more alternate routes. D. _X_ Entertainment or stage locations (grandstand operators should provide you with a ''to scale" drawing.) E. _X_Alcoholic beverage concession area. F. _X_ Non-alcoholic concession area. G. _X_ Food concession area. H. _X_General Merchandise concession areas. Page 2 of 10 21 I. _X_Portable toilet facilities (indicate number). 1. _X_ Event participant and/or spectator parking areas. K. _X_Event organizer's command post. L. _X_First aid facilities. M. _X_Fireworks or pyrotechnics site. N. _ Vehicle fuel handling sit. O. _ X_ Cooking areas. P. _X_Electrical sources to be used for cooking. Q. _X_tables, enclosures, etc. R. _ Temporary or permanent stlUctures constructed for the event. S. _ Site of electrical wiring to be installed for the event. T. _X_ Trash receptacles (indicate number) U. Other - Please describe. 8. A V AILABll..ITY OF FOOD, BEVERAGES AND/OR ENTERTAINMENT: If there will be music, sound amplification or any other noise impact, please describe, including the intended hours of the music, sound or noise: Batll~ of t\1e T~n Bands will be u~ amplified sound from 6pm to llpm August 4th. Festival Awards will be given out using &qlplified sound ~ Noon ~'J~u~ 5th. Qance Lines win be performing and tlSip,g amplified sound from Noon to Ipm August 5th. Tricia and the Toonies will be sing amplified sound from Ipm to 2pm August 5th. The Festival Street Dance Band will be using amplified sound to provide dance music from 8pm to I2pm August 5th. Bingo will be using amplified sound from Noon to 4pm August 6th. Will alcoholic beverages be served? Yes _X_No PLEASE NOTE THAT SALES OF LIOUOR/ALCOHOL IS PROHIBITED IN CITY PARKS UNLESS THE EVENT IS A CITY CELEBRATION AND PRIOR APPROVAL AND APPROPRIATE LICENSES ARE OBTAINED BY CITY COUNCIL ACTION. If yes, describe what system will be used to ensure that alcoholic beverages will be consumed by persons 21 years and older: Upon inspection of a valid I.D.. a person will either be given a wristband or hand stamp as approved drinking age identification. If yes, describe how, where, when and by whom the alcoholic beverages will be served:. At LaMotte Park. starting August 4th at 5pm to 11 pm. August 5th 1 Dam to 6pm and August 7th 1 Dam to 6pm. up by the softball fields by a beer trailer. Also at the Hockey Rink. starting at 6pm to 11 :3Dpm. with another beer trailer for the Street Dance August 5th. If needed. possibly for Bingo from Noon to 4pm August 6th. Persons will be served by Centerville Lion Members or known volunteers only at all times. If a casino party, a dance, or live entertainment is part of your event, please describe: Battle of the Teen Bands on August 4th is made up of four to six live bands. Street Dance on August 5th is the live band "Uncle Chunk"; special guest will be the winner of the Teen Battle. Page 3 of 10 Jj Please describe all of the activities of your event for which a license is required, for example: a cabaret license, etc. Attach all required licenses to this application. Please Dote that certam IiceD"DJl ,,~.,. be reqqired 11): City. ~o,qtx _lid ~tat~ a,~.~ s~'" .. a VaOle ~~~IY LiceDse for ,atheriDlls over 1.000 ocople. some tvnes of f09d haDdliDIl IiceDsm2. GambliD2 Li~ase.. ~.ba~ t.~v,,~ It" your feItt!l,ibtlitl to etteck ph Jltc tit! tkrk ~r k91 authorities to determine what IiceDsiDI! is reouired Drior to submittiDl! this &pOlication. 6vent Noise_ BiD8o. Firewor~ 3.~ MalJ Liquor Event Pemit. Will food and/or non-alcoholic beverages be served? Yes _X_No If yes, describe sanitation measures, food handling procedures and the nature of the food (such as pre-packaged foods, hot dogs, pre--mixed soda, unpeeled fruit, raw meats, vegetables, fish or peeled and cut fruit.) The Centerville Lions always use the health guidelines layed down by the ,Anoka County Hqilih DepartqIent in bandling. storing. trarwK>rting and cooking of fQOds and beverages. If ves. you will need a permit from the Anou County DeDartment of EnviroDmeDtal JI.~ ~e ,bclt a ~ODY of the pe....it to UJis ap~doq, It will be forwarded oau applied for, approved aDd received. 9. SECURITY AND SAFETY PROCEDURES: Describe your proposed procedures for set up, operation, internal security and crowd control: As in the past, the Festival Committee plans on working with Centennial Lakes Police and Reserves to insure the whole Festival has the proper security and safety for all events. If the event is to occur at night, describe how you are going to light the event area in order to increase the safety of participants and spectators coming to and leaving the event: Alrighty installed LaMotte Park lighting. If your event includes vehicles or animals, describe the minimum and maximum speeds of the event and the minimum and maximum intervals of space to be maintained between units: Nt A Attach to this application a copy of your building permit(s) if you are installing any electrical wiring on temporary or permanent basis and/or if you are building any temporary or permanent structures such as bleachers, scaffolding, a grandstand, stages or platforms. Page 4 of to /-f Attach a copy of your fire department permit(s) to this application if you will use parade floats; an open flame; fireworks or pyroteChnics; vehicle fuel; cooking facilities; enclosures (and tables within those closures); tents, air supported structures, canopies, or fabric shelters. Give the name, address and phone numbers of the agency or agencies which will provide first aid staff and equipment if required. Attach additional sheets if necessary. Name of agency: Centennial Lak~ IJoljce and Fir~ l>q)artments. Name of Representative: Last year, Sergeant Pat Aldrich Address: 200 Civic Heights Circle Circle Pines, MN 55014 Day phone: _763-784-2501 Evening phone: Indicate medical services (if required) that will be provided for this event: Ambulances: Nurses: Doctors: Paramedics: 10. VENDORS OR CONCESSIONAIRES: Describe what vendors/concessionaires you will allow in conjunction with the event, and the purpose of these concessions: All concessions will be run by the Centerville Lions, to help raise funds to pay for Festival events not covered by the City ofCenterville. Describe how you intend to regulate, monitor and control the type, number and quality of vendors/concessionaires whom you may permit to operate in conjunction with the event: Nt A 11. CITY SERVICES/EQUlPMENT: Describe city services and/or equipment requested for this event: City barricades, cones, signs, picnic tables and other equipment which may be borrowed on an as-available basis. You should make advance arrangements to pick up and return this equipment. If you or any volunteers cannot pick up and return this equipment, please attach a letter requesting these services and explaining why your organization cannot perform them. This will be reviewed, then approved or denied by the public works foreman. Street barricades. cones and all LaMotte Park facilities. 12. OTHER PERTINENT INFORMATION: Please list below any other miscellaneous information you feel would be important and have a bearing on the approval of this Special Event Permit request: A earlier end time for dance music and concessions would lessen the time the Centerville Lions Club have in recouping events Page 5oftO JL? costs. The Club wants to be flexible but there'd be points were the event sponsorship would be in jeopardy. 13. FEE STRUCTURE I EVENT CHARGES: If there is a fee or donation required as a condition of attendance or participation of this event, please describe the amounts to be collected from various categories of participants or spectators: A Festival Treasure Hunt and Street Dance Button pre-purchase fee of $8 or a $10 day-of-event fee. The I<id CJfDival will be cash for ticket~ per last year. 14. If a donation is requested on a purely voluntary basis, describe how you intend to inform participants/spectators or others that they may participate in the event whether they make a donation or not: NI A Centerville Special Event Permit NAME AND TYPE OF EVENT: DAY, DATE AND TIME: 1. PARKS AND RECREATION DEPARTMENT FINAL APPROVAL AND SIGN OFF Signature Title Date: Please check or use N/ A (not applicable) where appropriate: 1. _ Final check bas been made of application requirements. 2. _ Event is approved by City Council. 3. _ All required permits are issued and on file. 4. _ Refundable clean up fee has been paid. 5. _ Insurance Certificate is on file with City Clerk 6. _ Surety Bond is on file to secure payment for applicant's obligation to the City. 7. _ Application is complete. 8. _ Special conditions are attached. REVOCA nON: Upon mutual consent, the City Council may revoke a special event permit if the conditions set fourth in the permit application are not being followed. Page 6 of 10 3/ Permit is hereby revoked: Signature Title Date: Reason(s) for revocation: TO BE REVIEWED/APPROVED AND SIGNED BY AFFECTED CITY DEPARTMENT HEADS 2. PARKS AND RECREATION DEPARTMENT Special Events Coordinator: Date: InitiaVsign-off: 3. POLICE DEPARTMENT Approved by: Signature Title Date: 1. Emergency vehicle access. 2. Traffic/safety street closures. 3. Appropriate barricades. (# Required) 4. Police personnel required/available. 5. Portable toilet facilities. (# Required) 6. First aid facilities. 7. Internal security and crowd control. 8. nighttime lighting. 9. Other provisions as may be required by this department. 4. LICENSING AND INSURANCE Approved by: Page 70ftO 3~ Signature Title Date: 1. _ Dance and/or live entertainment. List types or pennits or licenses required: 2. _ Alcoholic beverages. 3. Peddlers. 4. Noise abatement. 5. _ Other provisions as may be required: INSURANCE: Your iDSUrante eoverage lDust be reviewed and approved by tbe City's insurance carrier. 1. _ Public liability insurance naming City ofCenterville and other public agencies additionally insured is required. 2. Hold harmless forms executed and failed. 3. _ List and approve/disapprove other insurance coverage as may be required. s. FIRE DEPARTMENT Approved by: Signature Title Date: 1. _ Emergency vehicle access. 2. _ Use of fireworks, pyrotechnics, vehicle fueL open flame. 3. _ Cooking facilities. 4. _ Occupancy and spacing of tables, enclosures. S. _ Parade, floats. 6. _ Tents, air supported structures, canopies. 7. _ Other provisions as my be required by this department: 6. BUILDING DEPARTMENT Approved by: Signature Title Date: Page 8 of 10 33 Electrical: 1. _ Plan check/inspection of any wiring installed on a temporary or permit basis. 2. _ Permit(s) attached. Structural Piau: 1. _ Plan check/inspection of any temporary or permanent structures, including bleachers, scaffolding, grandstand, reviewing stands, stages, or platforms. 2. _ Permit(s) attached. 3. _ Other provisions as may be required by this department: 7. PARKS AND RECREATION DEPARTMENT Approved by: Signature Title Date: 1. _ Park permit(s) required. (to be attached) 2. _ Ballfield Usage Permit. 3. _ Beach permit required. (to be attached) 4. _ Trash containers required. (# ) 5. _ Portable toilets required. (# ) 6. _ Applicant's plan for cleanup, site restoration and material preservation (recycling) required and attached. 7. _ Other provisions as may be required by this department: 8. PUBUC WORKS DEPARTMENT Approved by: Signature Title Date: 1. _ Trash containers required. (# ) 2. _ Portable toilets required. (# ) 3. _ Special animal clean up required. 4. _ Barricades provided, as available. (# ) 5. _ Cones provided, as available. (# ) Page 9 of 10 Jf 6. _ No parking signs provided, as available. (# ) 7. _ Applicant's plan for clean up and material preservation (recycling) required and attached. 8. _ Other provisions as may be required by this department: 9. STATE,COUNTY AND CITY BEALTH DEPARTMENT Approved by: Signature Title Date: 1. _ Food and/or beverage served. 2. _ Permit(s) attached. 3. Food cooked. 4. _ Permit(s) attached. 5. _ List other health licensing obligations as may be require: Page 10 of 10 cJj ACrnDCERTlFICA TE OF LIABILITY INSURANCE MlE~ I ... Uune 16, 2006 PRODUCER (630)324-2500 FAX (630)324-2501 CN..Y MDcx::NR:RSN>RlGHlSl.PCNll-Eu:KI...:;AlE T. J. Adams Group, a HUb Rogal & Hobbs Company 333 E. Butterfield Rd., SUite 500 I-K)LD:R 1HISU::KI~lEIXESNOT AMEM)EX'JIN)(R Lombard, IL 60148 1'\ISl.R:RSNRH)NGCCM:RAGE IIN::lUI'4:U NSl..flERA: ACE A. .1t:lrica11nsl..rcnle NSU'lER8: [centerville Lions Club NSU'lERC: ~innesota INSURERO: NSU'lERE: ~ Tl-E POLICIES OF INSURANCE LJSTB) BELOW HAVE BEEN lSSUEDlO Tl-E ANYREOlJIREMENTTERM OR COI'<<lI1lONOF ANY CONTRACrOR 01HER DOClIMENTWITH RESPECT 10 WHICH THIS CERTFlCATE MAY BE ISSUED OR I'Al'Yf'S{fANltE NSURANCEAffCRDEDBYll-EPOI..I::ESDElSCRIB8) I-EflEN LSSl.e.ECTlOALL 'Tl'E~ E>O.lJS06AN)CICN)(fD\I5CFSLOI POUCES. AGGREGATE UMlTSstONN MAY HAVE BEEN REDUCED BY PAID CLANS. 1i.iR 1'IFECFNBl.IWCE FO.JC'(N..M!lER - 6'\CHocx:t.A'9<<:E LMI'S GENERAL L.IMIUTY S 1 - S X ~~lWlIJTY Fl'EIlAMAGECAnYane-> 1 I C1IWSMAOE 0 CXX1.R ..e:lexP(,AIya1e~ $ 1.QOC A KXlG21731936 Q9U1t2005 (g)112OO6 ~&NNJU.R'( s 1 _. I-- GENl!IW.N3GNGATE S ~AOOREGAlELMT APPLES PER: PAODUCTS-CXM'J1OPNJiG S II PnLICV~ L1lC AUTOMOIILE UABILITY OCJlBIEDSNGlELMT S IrDJded i"IJttb:Ne I-- (PW 8llCldIIt) IH'( AUTO r-- ALLOM&lAlJTOS BOOLYINJURY f-- HXlG21731936 OOO1taDi mov.a:xJ6 (PWperscn) s SCtEDUB)AlJTOS A "X HlB)NJTOS OJ\NI)PlJTO)r-vTCXMHD BalLVIN.lJRV ~ lP8r8llCidBnO S NClN-<l't'HODAlJTOS ~ f-- PRCPERrYIWW3E S (FW 8IlCidBnO CiA IAOE L.IA8IUTY AIJTO CH..Y -EANXIJENT S IWf AUTO IIOTCXM:RED cmERTlWf EA~ S r-- AUTOCH..Y: JtaO S EXCESS UA8lUTY EACH ClCX1lRAENCE S - DwrMilWJE IGGIB3AlE CXX1.R $ - NOT COVERED S - 0EDt.IC'IB-E S - S RETEN'I1CJ" $ ~I WORKERS COMPENSATION ""D I OTHER EMPLOYERS' UA8IUTY NOT CC1IIER3) E L EI'CH ACCIJENT $ EL I:llS6ASE-EA $ E L DISEASE-PaJCYLMT S DE! CRIPT10N OF OPERATION8ILOCATlONSIVEHIClESlEXCLUSIONS ADDED BY ENDORSEIlEIITISPECIAL PROVISIONS Provisions of the policy apply to the Centervllle Uons Club for their participation in a City Festival on August 3-7, 2006 (or any ther dates during the policy period). e City of Centerville is an additional insured, but only as respects liability arising out of the use of premises by the CentefVille Lions Club and not out of the sole negligence of said additional insured. J"E HCl..OER ADDITIONAL INSURED; INSURER lETTER City of Centerville 1880 Maine Street Centervllle, MN 55038 SHOULD NtV OF THE A8OIII! DDCIlISED I'OLIClES BI! CAHCB.ED IlEPORI! TIt!! EXPIRATION DATETlIEREOF, TIE ISSUING COMPMY WILl. BNDeAVOR TO MAIL ~ DAYS WRIITEN NO'I1CETO TIE CBmFICATE HOUlI!R IWEO TOllIE 1.a:T, IIUT' FAILURE TO 1lAlL8UCH NOTICE SHALL IIIPOSE NO OBIJGATlON OR IJABJU1Y OF NtV KIND UPON THE COIIPNtV. lIS AGENTS OR REPRIi1IloIffA1IYES.. ~ d~6.~ John E. Adams, C.P.C.U. ACGOc::oR'lORA.TrJN 19118 3~ RECElVED MAY 30 Z006 (FOR USE BY LOCAL JURlSDICfIONS) SAMPLE APPLICATION I PERMIT DISPLAY OF FlREWORKS/PYROTECHNIC SPECIAL EFFECfS CENTERVILLE, MN App6cant instruetioDs: 1. This application must be completed and returned at least 15 days prior 10 date of display. 2. Fee upon application is S ~ and must be made payable to ~ Name of applicant (Sponsoring Organization): J:-Je- des~.s ~dl'\r.A Addressofapplicant Hf:r - hr~ fJ-.r,. /S'7 A-t1f--fJr ~-... I'1.IV' Name of authorized agent of applicant: 1'1 (Y" ~~ -- 1-V1;r~ ;?v~,.~ D.c.. / Address ofagmt: {S-6 7 /1-nder- A- E~ ~ MAl" 5-s7?-2. Te1ephonenumberofagcnt: ~ Cf.!.""7j 717-' Dateofdisplay: f-<{-p' Time of display: "l::J.g-I()'J~_ Location of display: l-~e.. '---~ ~l." ~~? Ie- " M,1/' Mauner and place of slOrageoffueworkslpyrotechnic special effects prior to display: {3' ,. /''1 C F,.y..~~. S~..A- 1'/1 t IfrF Iff ~a-'Z-,h- .,f- #'"ff. Type & number offireworkslpyroChnic special effects to be discharged: I, 3 , ,. /, 'f C A~,. MINNESOTA STATE LAW REQUIRES THAT THIS DISPLAY BE CONDUCfED UNDER THE DIRECI' SUPERVISION OF A PYROTECHNIC OPERATOR CERTIFIED BY THE STATE FIRE MARSHAL. NAME OF SUPERVISING OPERATOR: I'll rr~ CERTIFICATE NO.: O.n 7 lunderstand d compI 'thall ~fth. 12----1, . andth - fthe- - th t?S'iand~ an agree to y WI proVISIons 0 IS app IcatlOO C reqUlfements 0 ISSWDg au onty, will ensure that the fireworkslpyrotechnic special elTects are discharged in a manner that wiD not endanger persons or property 01" constitute a 1lUisaooe_ app on: ~- - hS-f7' Required attaeblDeDD. Bltachments must be included with this application: 1. Proof of a bond or certificate of insurancc in amount of Bl1east $ ~ ~ ~ 2. A diagram of the ground, or facilities (for indoor displays), at which the display win be held. This diagram (drawn to scale or with dimensions included) must show the point at which the fireworkslpyrotechnic special effects are to be discbargcd; the location of ground pieces; the location of all buildings, highways, streets, communication lines and other possible overhead obstructions; and the lines behind which the audience will be restrained. For proximate audience (e.g. indoor) displays, the diagram must also show the fallout radius for each pyrotechnic device used during the display. 3. Names and ages of all assistants that will be participating in the display. The discluuge of the listed fueworks on the date and at the location shown on this application is hereby approved, subject to the following conditions, if any: Signature of fire chief7county sheriff: Date: Signature ofissuing authority: Dale: 31 ~cate of Insurance ':.~' , ". . .. " . ~ "::,..: - ":"1-'" 749162 Issue ~~006 PRODUCCR frHlS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONlY AND ~neci Speclall86ln111rnatior.ai, Inc. CONFERS NO RIGHTS UPON THE CEflTIRCATE HOlDER, THIS CERT'.FICATE Tamar8dc Vi. i:lOES NOT AMEND, fX1'EIII) OR LATER THE COVERAGE AFFOFIOED BVTHE SUb 119 POUCJES BELOW. Woodbury Minnesota 55125 I~UFIE.RS AFFORDING COVERAGE IIlSUfIER A: Undef'trlbrs, LIoYds of ~ INSURED IIlSUFlER B: tt)llywoocf Pyrotechnics. Inc. ~ERC: 1587 Antler Point Eaan M"mesora 56122 COVEflAGES THIS IS TO CERTIfY THAT THE POLICIES OF INSURANCE lISTED BELOW HAVE BEEN ISSUED TO THE NAMeD INSURED ~V; FOR THE PERIOD INOICATl:D. NOlWlTHSTANOING ANY REOUlREI.lENT. TEAt" OR CONDITION OF ANY CONTRACT OIl Oll-iER DOCUMENT WITH ReSPECT TO YMICH THIS CERTiFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY1l-IE PQUClES DESCRIBED HERBN is SUBJECT TO ALL ntE TERMS, EXCUJSlONS AND CONDITIONS OF SUCl-i POLiCIES INCWDtlG. BUT NOT LMITE) TO THOSE FOLLOWlNG: LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. AOOlTIONAL COI'IDITIONS AND EXCLUSIONS: Ii THE INSURANCE EViDENCED BY THIS cERilr'lCATE IS IJABIllTY INSURANCE ONLY,IT IS ."IOT A BOND OR ANY FORM OF SURETY AGAINST WHICH SOMEONE OTHER AN '1:\5JRED" MAY ASSERT A CLAiM OR BAII/G NN ACTION. SUBJECTTO POLICY TERMS, CONDITIONS, DEFINITIO.'IIS ND EXCLUSIONS THE ~SURANCE ONLY INDEMNIFI:S AN fiSUREO AGAINST CERTAIN LEGAL lJABILOTY. 21 THE INSURANCE DOES NOT COVER ClAIMS FOR llOOl. Y INJURY OR PROPERlY ;)AMAGE OF THE NAMED INSURErS SHOOlERISI ASSISTANTiS) OR ANY OTHER PERSON:S) INClUOINGANY VOlUTEERlS) PARTlCPATING ~ I<HV WAY IN ANY OISPLAY OR SPEClA:.. a=FECT PERF'ORMED OR EXECUTED BY ~E NAUED lNSUREO " 3jCOVERAGE DOES NO:- APPLY TO ClAMS FOR BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF THE INSURED'S 6~ILIJflE TO FOLLOW NFPA OF! OTHER APPl.ICABLE FlEClUIREMENTS. LAWS OR RECOMMENDATIONS, I~UDING THOSE RELATING TO POST DISP'~Y R SPECIAl EFFECT SEARCHES OR CLEAN UP. CO TYPE OF INSURANCE POlICY NUMBER POLICY Ei'FECTlVe POllC'ft~RATION UMITS LTR DATE (WiOOlVYI DATE MM.'DDiVY) A ~ERAl UABIUlV 11447020261006 JuIl8 01. aJ05 'ur'" 01.2007 EACH ACCIDENT it ,000,000 CLAIMS MADE MeDICAL EXP $5.000 ,eny DIl8 person) FIRE LEGAL L1ABUTY 150,000 :3ENERAl AGGREGATE 52.000,000 PFlOOUCTS-COMPIOPS AnG 11.000.000 AUTOMOBILE UAB/UTY COMBftlE) SINGLE L1t.4T ~ "ea acc:1a1t} ANY AUTO BODILY IN.kJRY ~ .ANY OWNED AUTO <Pet cersonl SCHEDULEO AUTOS ~ HIRED AUTOS BODILY INJURY NON-QWNED AUTOS <Per accident} PROPERTY DAMAGE ~ <Per pll<5Ofll EXCESS L1ABIUTY EACH ACCI08'ff Is FOLLOWING FORM AGGREGII7E Is WORKERS COMPENSATION we STATU- OTHER AND CRY L1t.4TS S EMPLOYERS' UABILlTY e.L. EACH ACCIDENT 5 E.L. DlSEASE-EA EMPl.OYER E.L. DISEASE-POliCY LIMIT OTHER DESCRIPTION OF OPERATION&1.OCA TIONSNEHICLESiEXC:'USIONS ADDEO 9Y :!NOORSEJ.CENT;'SPECIAI.. PROVISIONS Fete CiDS l.aC!l, CelllBMIIe FestiI'aI CorrvrlllH; CIly of Cenletvllle and CerCllnrile lions ;'1."8 Aaolionall ~UI1lV llll IlIspeclS ll1e August 4, 2006 (AD: A..gusI6. 2006) Fireworks Display at L.8urI8 Larr.otte Park. CenlelVlle. MN CERTIFICATE HOLDER CANCELLAT.-oN Fete aes Lacs SHoo..O ANY OF 1l-IE ABOVE DESCRIBED POUClES BE CANCELLED BEFORE THE EXPIRATION DATE C8I11IIIrv1. FestMII Commlne. ~EREOF. THE ISSUrNOCOMPANYWIll ENoeAVORTO~ 10l:lAYS WRiTTEN NOTICE TO 1l-IE 7155 BrIan DriY8 CERTIFICATE HOlDER NAMED TO TIolE LEFT, BUr FAILURE TO MAIL SUCH II.'OTICE SHAlllMPQSE NO Centervle, I'/N 55038 OBLIGATION OR UABIUlV OF ANY KIND UPON THE GOMPI<HV. rrs AGEI'CT'S OR REPRESENTATIVES Pfl- dlutL-- - 3! Mira laCuus President I Display Operator HOLLYWOOa PYROTECHNICS INC Hallywuod Py."UIBI:hni:s.1nc. 15&7 Antler Paint Eagan. MN 55122 mJral!hallywaadpyrutechnil:S.Clllll B5J-454-7B7& Dr &51-454-7975 fax I-BGB-PYRD4n (197-8410 tall-tree BI2-TJD-938D mob.. Site Survey Centerville "Fete des Lacs" Fireworks Display, August 4th, 2006 Prepared by Mira laCous Aprillstt',2oo6 The aerial photo depicts the shoot site. The Primary site proposed is in the Laurie Lamotte Park, and on the North ball field. This offers a 300' safety radius. There are no obstructions to the audience from the shoot area, so a full range of products can be used to lengthen the display and keep it interesting and fast paced. JJ ------ --_.-._.'---"-'~ ~atIruUJor~ FIREWORKS OPERATOR CERTIFICATE B08 Certificate No: B 0537 MIRA K LA COUS 1561 ANTLER POINT EAGAN MN 56122 Effective Date Expiration Oatil 81212004 812/2008 ----------------..--. ---._--------------~ ----,,- -------- -' auufoor ({[.lrufoor~nuzte FIREWORKS OPERATOR CERTIFICATE B08 Certificate No: B 0599 ROBERT BROWE 2521 HUMBOLDT AVE S #C MINNEAPOLIS MN 55405 Effective Date Expiralio~ Oate 8/212004 81212008 lj ,,;?;;f~"_c "', ~.. .\;,~}-{,\~~ /' .J~. o ~ ...- . :JU 19z ...... (j) .. ~~ z z ,'!l [3 Q 1 w ~ < I-z 00:: O::w >-I- D-z w-- :r: I-- r;(t~: .. Q) (/.) ~ 0 '-- u ~ S 0 .- ~ ~ (.) ~ == '€ Q) ~ u ~ 0 ~ ~ (I) ~ Q) ~ s c.. c:s ~ 0 :J tI) 0 ~ < ~ 0 0 ~ ~ 0 ~ M .- P-c j 1:: ~ c. ~ (/.) .- 0 ~ <( s ~ It ..... ~ 4/ May 16.2006 Re: SM Liquor Liability Insurance Renewal Dear Lions Club: The Liquor Liability Insurance for your Club comes up for renewal on June30, 2006. We have made a change in the program. Effective \\oith the June 30, 2006 policy period, we will be changing Insurance Agents and Company. The new Agency \\ill be The Hendrickson Agency Inc., 6400 FLying Cloud Drive, Suite 160, Eden Prairie MN 55344; phone number 952/903-2341 (Ronnie), fax 952/903-2395 or www.hendricksonagency.com. The Insurance Company is Colony Insurance Company. AM Best rating A VIII. The limit has been increase from $300,000 each occurrence and $600,000 aggregate per club to $1,000,000 each occurrence and $2,000.000 aggregate per chili. The new program includes; members, Lioness and volunteers as additional insured. The Annual premium, which will be fully earned at inception of the policy will be 5141.50. This is reduction from last year plus better coverage. It also includes 5 additional Insured per club. such as City of-.-. or etc. without charge. Above that there is an additional charge of $1 03 .00. Liquor Liability is automatically provided for any event held at your premise and/or event held off premise. This prosmn was approved by the Council of Governors in Rochester. DOT NOT SEND your renewal to Corporate 4 Agency, as they will no longer be an approved program after your expiration date. SEND your renewal and check to : Burdell R Wessels, PDG 13214 Kerry Lane Eden Prairie MN 55346 MAKE YOUR CHECKS PAYABLE TO: The Hendrickson Agency Inc. I will forward them and they will send you a binder/certificate. If you have any questions, please call me at 952/934-1762, fax 952/944-0607. 1t MDSm Lions Club Liquor Liability Questionnaire The Liquor Liability Policy for your Club is coming up for renewal on June 30, 2006. Please complete this fonn and return it with your check and a copy of the enclosed invoice by June 30, 2006.. Name of Lions Club ~...J-r1ri2-vi~ L-lb~~ ~ua.- Mailing Address '7 I?? E:i2-'A~ ~l \I~ ~._;'\-~~,,<,-~l!" I tvo...J '?~o3S Location address for meetings / D ~ {, 'L-a-\...1"I-,; i:2-VII.."-",,g- ;2-CAY> ';:::"o~?-J u- -.....:r ",^_i ~ ~D :? J?, . Estimate Annual Gross Receipts/ Sale of Alcohol $0 7. I?r:>t> - ~ 1'7. bO~ . . Estimate number of events during one year \ - ft ~ame, address and phone number of contact person in your Club. b~b- ~~~I!f,-t""!I-~ /t~5 -a,~~ ~1i.E 4~~~;~. t-J ';;:::;.o~ Phone bG! r Y; 3>- i~ ht ~.. :t-";U - q,7---2- Please list below name and address of any cities or etc. to whom you need a certificate of your Liquor Liability sent. ?,-rt ,...,p .c..a...rr~~ ll;,-~ I e ~o \I"A"A ,...j ~e'I ~~~I~. .......J c.:1~o;3e ~...J: ~~~A 't3C;,...lDEj2... \-11roJ p ~ .?-l'f'( HIAl-l- hOT:;;> """\'~ ~tj€;4 t:>~f \.-\ _I::> \-Au->. M.,.J '37':>'~ i"\1'rH" ->Vv1li t3Ai2--'/e\..ol- If more are needed, attach a separate list. If you have a copy of last years certificate that was issued. please send me a copy. If you have any questions call me at 952/934.1162 or fax 952/944-0607. Return this application and your check to: Burdell R. Wessels, PDG MD5M Insurance Consultant 13214 Kerry Lane Eden Prairie MN 55346 Make your check payable to: The Hendrickson Agency Inc. 13 -..r ~L HENDRICKSON AGENCY, INC. INVOICE Date: 5/18/06 TO: Centerville Lions Club Aceount Nnmber & Name Lions Clubs of Minnesota Account #561 Liquor Liability Coverage Effective 6130/06-07 Insurance Company Colony Insurance Company Annual Premium: $ 741.50 Make Check Payable to: Hendrickson Agency, Inc. 6400 Flying Cloud Drive. Eden Prairie, MN 55344 Phone (952) 903-2300 . Toll Free (800) 366-5638 . Fax (952) 903-2395 www.hendricksonagency.eom lot_oj; . TIlE GRED'\\1C11 <lIIOllf' GreflIwltll AmIIates R.."."NV Phoenix. AZ Dallas. TX San Diego, C A Quebec. Canada Washington. IX' Boston. MA Atlanta. GA Minneapolis. MN Philadelphia. J'A Memphis, TN New York, NY Los Angeles. CA 0Ic1ahoma Cily, OK l.a/8yctle. LA Rochester. NY ShermaII Oaks, CA Ft. Laudcnlalc. FL 11 2006 Centerville "Fete des Lacs" Friday August 4th - Sunday August 6th "Pirates of the Lakes" theme all weekend longl teroif[e 'EstaffJ.Slid 1S57 ~x , ;_~J'...... ~ ---~~,,/~ '~'" " "'" 'i '. Friday, August 4th (1) Pirate Treasure Hunt, $250 Prizel First Clue Corner Express and Center Mart at 5pm. Button needed to receive Clues and the finder's Prize. Kid's Carnival, 5pm-10pm Mama and Pedro's Taco's, 6pm-10pm Girl Scout Troop 1970 Corn Feed, 6pm-10pm All-Star City Softball Game, 7pm Battle of the Teen Bands, Non-Alcohol and Free, 6pm-11 pm featuring "Splinter Effect", "Bleeding Vengeance", "Salva Dali" and "For Fault" City Festival Fireworks, 10pm Food Concessions, Beverages, Draft Beer and Wine Coolers, 5pm-11pm Saturday, August 5th City Festival Parade, 108m Kid's Carnival, 11 am-9pm (2) Softball Tournament, Cash Prizes, 9am-6pm (1)(2) Saaer's Vollevball Tournament, Cash Prizes, 11am-5pm (1)(3) Trio Horseshoes Tournament, Noon-5pm Dancin Star and Lorenz Dance Line Shows, Noon-1 pm Tricia and the Toonies Kid's Show, 1pm-2pm Classic Rock, featuring "Clip Point" on the Mainstage, No Cover, 2pm-6pm (4) Car Show, Noon-4pm Craft Show and Business ExPo, Noon-5pm Mama and Pedro's Taco's, Noon until gone Girl Scout Troop 1970 Com Feed, Noon until gone Street Dance, back by popular demand, "Uncle Chunk" 8pm-Midnight. Festival Button or $10 at Door for entry. Special Guest the winning band from the Battle of the Teen Bands! Food Concessions, Beverages, Draft Beer and Wine Coolers, 10am-11:30pm Sunday, August 6th Softball Tournament, Playoff Games, 9am-5pm (5) Kid's Fishing Contest, Prizes for all Kid's, 1 pm-4pm Binao, Cash Prizes including two $25 Games, Noon-4pm Food Concessions, Beverages, Draft Beer and Wine Coolers, 10am-5pm Limited Discounted Festival Fundraising Buttons for $8 will be available at Comer Express, Sager's, Apple Academy, Center Mart. Mainstreet Bank and Wiseguys Pizza through the business day August 4th or untilllOld out. Buttons if still available ere $10 starting August 5th, and only available at the Uon Concession Trailers in Laurie laMotte Park. Tickets will be issued in place of Sultana if needed. (1) All events are at laurie laMotte Park, unless noted. (2) Team pre-registration needed. Call Seger's at 651-653-7791 for details. (3) Individual pre-registration needed. Call Unda at 651-426-2956 for details. (4) Entry pre-registration needed. Call Terry at 651-653-1830 for details. (5) Contest is to be held on Centerville Lake, byWaterworks. *AJI Events and Times are subject to Change and Bad Weather, sorry no Refunds. ..Centennial Lakes Police Department wid be strictly enforcing all laws. ,...,__....__!!'_~.A ....".&... . "....~. .# ^__..L._ .!._. ___......... _ ,,_._"'__ .~i'_ . :_ 0_... ""'....... ....... ___t. - ...... #__. ._.._ _"_0- -..... 4j An exempt permit may be issued to a nonprofit organization conducting lawful gambling activity on five or fewer days, and awarding less than $50,000 in prizes durings a calendar year. Organization Information Organization name ~ T~ILU; Street ?19? ~1\t.J ( IV\!. Name of chief executive officer (CEO) First name Last name l:ir:42-f ~~~~ Type of Nonprofit Organization Type of nonprofit organization (check one) o Fraternal gyli9iOUS o Veteran ~ Other nonprofit organization Ty~roof of nonprofit status - attach a copy (see instructions) g Nonprofit Articles of Incorporation or Certificate of Good Standing - Minnesota Secretary of State's Office o Internal Revenue Service ~ffiliate of parent nonprofit organization (charter) ~ Proof previously submitted and on file with the Gambling Control Board Minnesota Lawful Gambling LG220 Application for Exempt Permit Page 1 of 2 2/06 Fee $50 For Board Use Only Fee Paid Check No. Previous lawful gambling exemption number Daytime phone number 12- -..?--Z+ - 9j2--~ Gambling Premises Information Name of premises where gambling activity will be conducted (for raffles, list the site where the drawing will take place) Zip Code County b~'7o L.AtV'~1T~ ~~ ~ iP-v1'-~ '?7D3.S 1'r,..J~ Date(s) of activity (for raffles, indicate the date of the drawing) \J b -.- b 'nt 2-00 (.". Check the box or xes that indicate the type of gambling activity your organization will be conducting: ;z:r:BingO D Raffles D *Paddlewheels 0 *Pull-Tabs D *Tipboards *Gambling equipment for pull-tabs, tipboards, paddlewheels, and bingo (bingo paper, hard cards, and bingo ball selection device) must be obtained from a distributor licensed by the Gambling Control Board. To find a licensed distributor, go to www.gcb.state.mn.usandclickon List of Licensed Distributors. Or call 651-639-4000. This form will be made available in alternative format (Le. large print, Braille) upon request. The information requested on this form (and any attachments) will be used by the Gambling Control Board (Board) to determine your qualifications to be involved in lawful gambling activities in Minnesota. You have the right to refuse to supply the information requested; however, if you refuse to supply this information, the Board may not be able to determine your qualifications and, as a consequence, may refuse to issue you a permit. If you supply the information requested, the Board will be able to process your application. Your name and and your organization's name and address will be public information when received by the Board. All the other information that you provide will be private data about you until the Board issues your permit. When the Board issues your permit, all of the information that you have provided to the Board in the process of applying for your permit will become public. If the Board does not issue you a permit, all the information you have provided in the process of applying for a permit remains private, with the exception of your name and your organization's name and address which will remain public. Private data about you are available only to the following: Board members, staff of the Board whose work assignment requires that they have access to the information; the Minnesota Department of Public Safety; the MinnesotaAttorney General; the Minnesota Commissioners of Administration, Finance, and Revenue; the Minnesota Legislative Auditor, national and international gambling regulatory agencies; anyone pursuant to court order; other individuals and agencies that are specifically authorized by state or federal law to have access to the information; individuals and agencies for which law or legal order authorizes a new use or sharing of information after this Notice was given; and anyone with your consent. -sI~ LG220 Application for Exempt Permit Organization Name ?(;\.-...Jlwi;l\!I~ 1.--l0\-l7 Local Unit of Government Acknowledgment If the gambling premises is within city limits, the city must sign this application. On behalf of the city, I acknowledge this application. Check the action that the city is taking on this application. O The city approves the application with no waiting period. O The city approves the application with a 30 day waiting period, and allows the Board to issue a permit after 30 days (60 days for a first class city) . o The city denies the application. Print name of city Signature of city personnel receiving application Title Oate----1----1_ Page 2 of 2 2/06 ?-L..vi;' If the gambling premises is located in a township, both the county and township must sign this application. On behalf of the county, I acknowledge this application. Check the action that the county is taking on this application. o The county approves the application with no waiting period. o The county approves the application with a 30 day waiting period, and allows the Board to issue a permit after 30 days. o The county denies the application. Print name of county Signature of county personnel receiving application Title Oate-.--l-.--l_ TOWNSHIP: On behalf of the township, I acknowledge that the organization is applying for exempted gambling activity within the township limits. [A township has no statutory authority to approve or deny an application (Minnesota Statute 349.213, subd. 2).J Print name of township Signature oftownship official acknowledging application Title Oate_I-.-I_ Chief Executive Officer's Signature The information provided in this application is complete and accurate to the best of my knowledge. I acknowledge that the financial report will be completed and returned to the Gambling ntrol Board within 30 days of the date of our gambling activity. Chief executive officer's s. Name (please print) Mail Application and Attachments Date C / .,;l.;r / ~ Complete an application for each gambing activity: . one day of gambling activity . two or more consecutive days of gambling activity . each day a raffle drawing is held Send . the completed application, . a copy of your proof of nonprofit status, and . a $50 application fee. Make check payable to "State of Minnesota"). To: Gambling Control Board 1711 West County Road B, Suite 300 South Roseville, MN 55113 Jj1 CITY OF CENTERVILLE ANOKA COUNlY, MINNESOTA ORDINANCE#_ SECOND SERIES AN ORDINANCE AMENDING CHAPTER 30 OF THE CENTERVILLE CI1Y CODE BY AMENDING SECfION 30.02 RELATING TO MAYOR AND COUNCIL THE CITY OF CENTERVILLE ORDAINS: Section 1. Code Section 30.02 shall be amended to read as follows: 30.02 MAYOR AND COUNCIL OBLIGATIONS, SALARY OF MAYOR & COUNCB.JSPECIAL REQUIREMENTS FOR ELECTED OFFICIALS TO BE CONSIDERED FOR CITY EMPLOYMENT (A) Obligation to attend meetings. It is the obligation of each elected official to attend regular and special meetings and; the Council may compel the attendance of members. There will be no penalty for members missing up to three (3) regular or special meetings per year; thereafter a missed meeting will result in the loss of that meetings pay. (B) Salary of Mayor. The salary for the Mayor is hereby established at $400.00 per month plus an additional $25.00 for each Council meeting and workshop attended. (Effective date 1/1/2007) (C) Salary of Council members. The salary for Council Members is hereby established at $325.00 per month plus $25.00 for any additional Council meeting(s) and workshop(s) attended. (Effective date 1/1/2007) (D) Eligibility for employment. An incumbent mayor or council member may not be considered for regular employment with the City unless such person has resigned from such elected office before making application for employment. A former Mayor or Council Member may not be considered for the positions of Administrator~ Finance Director or Public Works Director unless at least 24 months has elapsed since holding such elected office. Section 2. Effective Date. Sections 30.02 (B) & (C) shall be effective on January 1~ 2007. The balance of this ordinance shall be effective immediately upon its passage and publication according to law. PASSED AND DULY ADOPTED this Council of the City ofCenterville. day of . 2006 by the City CITY OF CENTERVILLE BY: Mary Capra, Mayor ATTEST: Teresa Bender, City Clerk 1 -11 NORTH METRO TV MEMO TO: OPERATIONSC01~rrTTEE RECEIVED FROM: HEIDI ARNSON SUBJECT: BUDGET INFO JUN 2 3 2006 DATE: 6/22/2006 CENTERVILLE, MN In this packet you will find the 2007 Commission and North Metro TV budgets as approved by the Commission at their June 21, 2006 meeting. According to the Commission by-laws I need to get the budgets to you by August 1st, and your cities need to approve them by October 15th. I guess approve isn't the right word. Again, according to the rules of engagement, the cities can't really not approve the budgets, dley can only elect to leave dle Commission. Hey. I didn't make dle rules. Anyhoo, here is eve:ryd1ing you need, including a brief "talking points" that I put togedler to help you or your commission member explain the major points of the budget during presentation to your cities. The talking points are meant for you or your commission person, but I guess if you want to hand dlem out to everyone on the council d1at would be just fine. Have a pleasant July 4th holiday! I will be out of the office Friday June 30th through Tuesday July 4th. I will be back on Wednesday July 5th and happy to answer any questions or address any issues you may have. Thanks! Heidi ;/f 'to., 2007 Commission and North Metro TV Budgets Talking Points Overall Oreanizational Goals · To develop a plan for continuing to deliver important and valuable services to the North Metro, utilizing the 2006 Strategic Planning and Alternative Funding Methods Report and a 2007 subscriber survey. This plan will be essential, considering the legislative climate, and the likelihood that funding for community programming will be decreased as a direct result of this legislation. · To position the organization's capital equipment inventory so as to eliminate the need for major purchases over the next three to five years. · To hire 5 part-time assistants to create a pool of employees who can be relied upon to crew van shoots, assist with ad shoots, and help in the production of other community programs. These individuals could also serve as a pool of videographers available to cities for hire to tape meetings. It is becoming more and more difficult to produce more, higher quality programs utilizing volunteers. High technical quality programming will be more and more essential as we try to sell advertising. Staff time spent on recruiting and training volunteers has reached a point where we will not be able to expand the number of events we cover. There are not enough people willing to volunteer their time, as often as we need them, to produce the numbers of programs we produce. While we will continue to utilize volunteers and interns, developing paid part-time positions will serve as incentive for folks to continue to volunteer or intern with us to develop their skills, as there is the possibility that they could actually get a job. This way, all the training that we put into our volunteers and interns won't be lost once the internship is over, or the volunteer needs to find a job. This pool of employees could also be tapped by cities when they are looking for people to tape their meetings. Finally, it is possible that with reduced funding we may need to rely on part-time people to produce most of our programs. Developing this pool now will make any necessary transition more seamless. The total cost of this part-time pool would be $27,450.75. They would be limited to earning $425 per month, and would therefore be ineligible for health benefits or PERA. Payroll taxes would apply and are included in the above total. · To expand revenue sources such as advertising, copying fees, and additional services determined feasible by the 2006 Strategic Planning Report. · To continue developing public recognition of available services. Commission Hudeet · The recommended budget total for the Commission is $558,884. This is a 6.8% increase over last year's budget. The increase is due to a recommended 3% salary ~ " . increase for staff, a 10% increast? in insurance costs, the inclusion of a subscriber survey budgeted at $12,000, the purchase of a photocopier budgeted at $10,000, and an average 17% increase in utility costs. · Franchise fees are expected to be at least $749,000. There will be additional income from interest, currently estimated to be at least $20,000. After subtracting the recommended budget total, it is expected that at least $200,000 would be returned to cities. This represents a 15% increase over the funds returned to cities last year. North Metro TV Budf!et · The recommended North Metro TV operating budget is $647,482. This is an 11 % increase over last year's budget. The increase is due to a recommended 3% salary increase for staff, the addition of 5 part-time positions totaling $27,451, a 50% increase in the advertising/marketing budget, 10% increase in insurance costs, and an average 17% increase in utility costs. · It is estimated that PEG fee income will total at least $638,820. Additional revenue is estimated to total $104,935. · The recommended equipment purchases will complete the upgrade of all of our major equipment systems. This will result in the ability to go three to five years without making any major equipment purchases. It is recommended that a cargo van be purchased to allow for the safer transport of scaffolding for van shoots, and the easier transport of the staff portable studio. A bare-bones, used van will meet our needs. Closinf! Points · We have created a thriving and dynamic service for our cities, schools, producers, and viewers. Through program playback and channel management, computer and network consulting, video equipment consulting, and video production services, our cities are seeing real benefits from their investment of franchise fees and PEG fees. Our cable subscribers are benefiting from this investment with educational opportunities, and varied, informative and interesting programming regarding their communities. · We will do the best we can, with what we have, to continue to provide these services. Our primary goal, going forward, will be to work with the Operations Committee and Cable Commission to devise a strategy for dealing with a changing environment. · It was recommended that the PEG fee be increased by the allowable CPI. The average CPI for 2005 was 3.4% resulting in a nine-cent increase from 2.64 to 2.73, effective January 1, 2007. · The Operations Committee recommended that the Commission approve transferring the unrestricted Commission funds, as of December 31, 2005, of $33,300 to the production truck replacement fund, as had been previously discussed and approved. These funds represent the money left over in the 2 5/ '" . Commission account at the end of the year, due to frugal spending in the various budget line items and higher than expected interest income. The current truck is five years old. It will likely need to be replaced in five to ten years, at a cost of approximately $170,000 - $180,000. 3 ~t June 22, 2006 Mr. Dallas Larson City of Centerville 1880 Main Street Centerville, MN 55038 RE: APPROVAL OF 2007 COMMISSION AND NORTH METRO TV BUDGETS Dear Mr. Larson: Enclosed, please find for the council's review and approval the 2007 Budgets for both the North Metro Telecommunications Commission ("Commission") and North Metro TV. I. 2007 COMMISSION BUDGET The Commission's operating budget for 2007 is proposed at $558,884. This is an increase of 6.8% over the 2006 budget. The 2007 budget is higher due to a recommended 3% salary increase for staff, a 10% increase in insurance costs, the inclusion of a subscriber survey budgeted at $12,000, the purchase of a photocopier budgeted at $10,000 and an average 17% increase in utility costs. Recommendation: That the Member Cities approve the 2007 Commission Budget as recommended by the Telecommunications Commission and the Operations Committee. II. 2007 NORTH METRO TV BUDGET The amended Joint Powers Agreement established an "Operations Committee" which is composed of Member City administrators. Their primary responsibility is to provide input to the operation and budget of the community television operation. Enclosed is the 2007 North Metro TV budget proposed by the Operations Committee and recommended by the North Metro Telecommunications Commission for approval by its Member Cities. The North Metro TV proposed budget is $851,082. This budget is composed of operating expenditures totaling $647,482 and capital expenditures of $203,600. In addition to the budget, the Operations Committee has also proposed an increase in the subscriber's monthly PEG fee 12520PolkStreet Northeast. Blaine. MN 55434 Phone: (612) 780-8241 Fax: (612) 780-8242 Blaine. Centerville. Circle Pines . Ham Lake . Lexington. Lino Lakes. Spring Lake Park 53 Page 2 from $2.64/month to $2.73/month. The Memorandum of Understanding between the Member Cities and Comcast allows for an annual cost of living increase in the PEG fee. The nine-cent increase represents a 3.4% CPI average. The increased funding is necessary for North Metro TV to meet staffing and equipment goals. The Telecommunications Commission is recommending this increase in the PEG fee. Recommendation: That Member Cities approve the 2007 North Metro TV budget and an increase in the PEG fee to $2.73/month as recommended by the Telecommunications Commission and Operations Committee. The Joint Powers Agreement states, "submitted budgets shall be deemed approved by a Member City unless, prior to October 15 preceding the effective date of the proposed budget, the Member City gives notice in writing to the Commission that it is withdrawing from the Commission." I want to thank the Commission directors, staff, and the Operations Committee for their efforts in preparing these budgets. If you have any questions about either budget please consult with your Commission director or City Administrator. I look forward to working with all parties, throughout the remainder of 2006, toward reaching the full potential of North Metro TV and to increase both the quality and quantity of community programming in 2007. Sincerely, ::V~~ Harley Wells Chair, North Metro Telecommunications Commission Ene. 5;/ northmetroTV _I II II GOALS 2007 1 ff _I II II the starting point In November of 2002, the North Metro Telecommunications Commission member cities and Comcast signed a new franchise agreement that included the continued funding of community television through November 2017. With the promise of this funding, we developed and implemented an ambitious plan to meet the needs of our seven cities, three school districts, and the general public. We purchased a new production truck and filled it with high-end digital equipment, designed and built a state-of-the-art television production facility with a centralized master control for playback of city programming, and expanded our staffing levels to meet our service goals. Enter the phone companies and Congress. National franchising legislation is currently making its way through the House and Senate. If approved in its current form, it would reduce our community programming funding (PEG fees) by 76%. There are many possible scenarios for our future. Worst case, the legislation passes in its current form and we have to make fundamental changes. Best case, a "do no harm" amendment regarding PEG funding is included in the legislation, resulting in a smaller reduction in our current funding. Whether it happens this year or next, or the year after, is unclear. What is clear, is that we need to be prepared for change. Our goals for 2007 reflect this reality. While our hope is to be able to continue the course of growth and development we have established, it is very likely that we will have to develop a different course. As such, we have budgeted and planned for a year's work, as if there will be no fluctuation in our funding. At the same time, we will be developing alternative funding sources that could either supplement or replace a portion of the PEG fee, and outlining possible scenarios for survival of the organization in the event of a greatly reduced income. We will continue to serve our communities at the same level we have in the past, while following the legislative process closely. If we are faced with the worst case scenario, we will be prepared to alter the 2007 budgets and plans accordingly. _I II II alternative funding plans Regardless of what happens in Congress, developing alternative sources of revenue is an exercise that will serve us well. To that end, the Commission has 2 a requested proposals for professional consulting services for the purpose of developing a strategic plan for dealing with a changing regulatory environment, and developing alternative funding sources. The project will be completed in 2006, with the results serving as the foundation for our funding plans going . forward. While we consider the creation of this plan an important step, we are already working to develop some of the more obvious revenue streams. The primary goal of ours for 2007 will be the expansion of these revenue streams (if deemed appropriate) and the implementation of any additional recommendations established in the strategic planning report. Current projects under development: . Increasing awareness of program copies for sale . Commercial dubbing service (transferring family/personal videos to DVD) . Sale of commercial spot production and spot playback over the cable system (sponsorship spots) Additional revenue sources under consideration: . Create a rate card for rental of equipment and/or studio space for personal or commercial uses . Charge a fee for video production classes . Examine membership fees . Rent out production services (staff could tape private events such as bands, weddings, fundraisers) . Sell DVDs/photos of kids with Santa in studio _I II I~ outreach/ advocacy Educating people about our services will continue to be an important and ongoing goal of ours. This includes not only our communities and potential users and beneficiaries of community television, but our state and federal representatives, as well. People need to know how community television benefits them and Congress needs to know that something valuable will be lost if our funding is significantly decreased. Our outreach plans include: . Engaging businesses through our City Scope segment "Spotlight on Local Business" . Expansion and development of our commercial sponsorship program 3 51 . Regular informational presentations at service club and organizational meetings . Regular informational presentations at schools . Targeted open houses for non-profits, religious organizations, teachers, senior citizens, etc. . Maintaining website with more information/Flash technology . Submitting articles and press releases to information outlets on a regular basis . Expanding workshop topics . Publishing workshop schedules in park and rec publications . Producing video promos for staff productions . Producing info-mercials detailing services available . Engaging our users in email/phone campaigns to protest detrimental legislation . Contacting our representatives to encourage them to support current funding levels for community programming . Arranging visits with our representatives or their staff . Conduct a subscriber survey to ascertain viewer opinions In addition to these goals, we will continue producing informational flyers, and PR kits. The annual Volunteer Award Ceremony will also remain an important part of our outreach plan. _I II .1 part - time production assistants We would like to hire up to five part-time production assistants who could be relied upon to work on van shoots, promotional spots, and other staff produced programming. These folks would only earn up to $425 a month (no more than 42 hours a month at $10 per hour) and would therefore not be eligible for PERA or health benefits. Payroll taxes would apply. While staff consistently produces, on average, 300+ programs annually with the help of volunteers and interns, developing a pool of paid, part-time producers would be a wise addition to the mix. Volunteers and interns come and go. They typically are interested in assisting until they reach some goal, whether it be completing their internship, high school graduation, getting a paying job, or meeting their community service requirement. Staff is also at the mercy of a volunteer's generosity. There isn't too much you can do to make them help you if they have something better to do. We expend a great deal of effort to train these folks. Often, by the time they have attained quality video production skills, they have met their goals and move on. This means staff has to start the process over again. 4 51 Some of the benefits of having a pool of part-time producers include a more reliable and consistently trained crew for van shoots, the ability to produce more programs, a reservoir of individuals who may be interested in also working for cities to tape meetings, and an overall increase in the quality of our final product. The technical quality of our programs is of particular interest to us, as we are working to develop a commercial sponsorship program. We want to be sure our programs look as professional as possible. While it may seem questionable to suggest increasing our staffing levels at a time when future funding is in jeopardy, it actually makes a lot of sense. Based on first quarter franchise .and PEG fee payments, our traditional income continues to grow. If nothing happens in the legislature, or if a "do no harm" PEG amendment 'is included in the final bill, we will be all the stronger. If, however, our funding is reduced we will have options. We can always nix the part-time pool, or, most of our productions might end up being produced by part-timers. In that case, having a pool of producers established would result in a smoother transition. _I II II equipment We have done an excellent job of gradually upgrading our video production equipment. As it stands, we sbould not require any major purchases for the truck, master control, Studio B, public portable, or the staff portable studio for several years. The last major area that should be upgraded is Studio A. We recommend purchasing three new camera systems, a clear-com intercom system, one tripod, two DVCPro tape decks, and microphones. In addition to the Studio, it would be prudent to upgrade editing computers and software, purchase an HD camcorder for highest quality sponsorship spots, and an encoder for master control. (We are currently able to encode two programs at once, but we will soon be faced with three city meetings occurring simultaneously, which will require a third encoder.) We would like to add a wide angle lens and SDI test equipment to the truck inventory, and we should also replace some microphones. Finally, it has become apparent that we could benefit from purchasing a cargo van. (Used would be fine.) It would make transporting the staff portable studio and the van scaffolding much simpler. We should budget for these expenses, but consider the legislative climate before spending it. A table of recommended equipment purchases for 2007 is attached to this report. 5 S'1 _I II II facing the future An important goal for 2007 is to outline a strategy for survival of community programming in the North Suburbs if national franchising legislation should become law. There are going to be a lot of things to contemplate. The strategic planning report we receive in 2006 will be helpful in considering steps to be taken to meet our probable funding challenges. A subscriber survey could be helpful in determining which services are more important than others to our viewers. Both will be useful tools for planning for a challenging future. Staff will work closely with the Operations Committee and Cable Commission to outline possible scenarios for delivering desired servic~s, redefining sources of funding, and if necessary, adjusting staffing levels and structure. _I II II peg fee We are currently at the maximum PEG fee allowed by our Memorandum of Understanding. We are, however, allowed to increase that level annually to cover cost of living increases. According to the Bureau of Labor Statistics, the average CPI for 2005 was 3.4%. Increasing the current PEG fee by this amount results in a nine-cent increase per subscriber, per month, to $2.73. Considering our current dilemma regarding future funding, I believe it would be prudent to take advantage of our ability to increase our funding by this amount for next year. If a "do no harm" amendment is included in future legislation we will be positioned very well, and can consider whether we want to leave it at that level for the following year. If the amendment is not included, the amount of your PEG fee will be inconsequential. _I II II conclusion We have a good thing going here. Our hope is that we are able to continue to provide the services and programs at the level that our cities, producers, and viewers have come to rely on. We have established some optimistic goals for next year that assume our funding level will not be decreased. At the same time, we will work to be prepared for a less than ideal future. 6 t/;J ESTIMATED REVENUES 2006 Franchise Fee Operating Reserve (Bal. Frwrd. 1/07) Bond Reserve (Bal. Frwrd. 1/07) Bldg Repair Reserve (Bal. Frwrd. 1/07) Interest Income $749,000 $50,000 $182,658 $10,000 $20,000 ESTIMATED EXPENDITURES 2007 Commission Budget Operating Reserve Bond Reserve Building Maintenance Fund Franchise Fees Retained by Cities $558,884 $50,000 $182,658 $20,000 $200,116 -7- /;/ ...... I-- ~ "'C ~ m fn - c: 0 - ;: (tJ (.) .- c: ~ ...... E 0 - 0 E C\I 0 (.) (1) - (1) I- - 0 - ... ...... 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"0 ..... >< i~;l Q) c Q) ill - W C i'. .J; > a > c :::l 1:1 Q) <..) :g Ol Q) e -0 lL n::: -- u; c E 'f c - >. 0) en :p - !li!f c ::J e c c 'Q Q) Q) 'S "0 LL Q) cu 'c Q) :::l Q) L. <( ,W.; Q) '- E a. 'm -' 0 ~ (.) en ....~~ ~ 'm ,':E-i E E (/) L. +:> Q) :::l a. c. :.~t:8 Q) en l- e ,9- (ij n::: a 1-4: ,- Q) :~ 0 - -- en <..) (.) c c Q) a. .c '0 (j) Q) VI! 0::: :".:il,"',' C cu a E :c ~ Q) c c w :ffi;' .iB ~ ..... :p c Q) Q) c. c ~ OJ C/) ~ -S cu '- (/) 0) .0 (f) a (j) c C/) en (.) Q) c cu E ..... '6 Q) :c'.- L. ~ (.) 'a~~ c c ::J > Q) ~ c (/) (.) a a "0 a ..... Q) Q) Q) ~ '3 :i. 0 <..) w <9 c ~ ~ <9 ll. 010 ro -10- ~f Commission Budget Line Item Supporting Information Personnel · All salaries are calculated based on a maximum 3% cost of living increase. The actual cost of living increase will be determined and approved by the Cable Commission, based on the average of member cities' increase, at their December 2006 meeting. · The Executive Director and Master Control Coordinator salaries are split between the two budgets. Benefits · Health/Dental coverage, ADD, STD, L TD, Life and Workers Compo The NMTC's contribution to PERA increased from 6.0% to 6.25% of employees wages. Insurance/Bonds · Insurance was increased 10% for 2007, primarily to reflect the increased budgets. Office Expenses . Building security is based on 2006 1 st quarter costs and is split 50/50 with the Media Center. · Postage and subscriptions covers the cost of mailing packets and bills, magazines, and other postage for the Commission. · Office supply line item reflects costs associated with printing packets, copying bills, etc. and potential problems with older printers and fax machines. · Telephone/lnterneUWeb Hosting costs reflect additional web costs, increases in telephone costs, and the annual phone software upgrade. Split 50/50 with Commission. · Trash, Recycling, and Janitorial are based on current actual costs including inflation considerations. Split 50/50 with Commission. · Building maintenance includes lawn care, snow removal, heating/cooling maintenance contract, annual fire inspection, carpet cleaning, window cleaning, landscaping needs, and miscellaneous costs. Costs are based 2006 actual costs, and consider an increase. Split 50/50 with Commission. . Building utilities include gas, electric, and water. I think we all know why this line item was increased. LeQalExpenses · There may be some legal costs associated with proposed legislation. -11- d5' Other Administrative Costs · The cost of the annual audit is increased to reflect 2006 actual plus expected inflation. SO/50 with the Media Center. · Included money for subscriber survey. · Conferences line item includes money for directors to attend in-state MACTA annual conferences and luncheons. · Education/Training/Conferences line item includes money for staff training and attendance at local MACTA conferences and luncheons and possible attendance at the NA TOA conference. · Government/Legislative Affairs includes money to support lobbying efforts on behalf of commissions and cities regarding telecommunications issues in the state legislature and on the federal level as well. · Stipends for up to eight interns. · Membership dues include MACTA, NATOA, local Chambers of Commerce, and Sam's Club. Capital Expenditures · Commission office equipment could include computer and software upgrades and a new photocopier. The previous copier will be eight years old in 2007. · The equipment grant began as $60,000 and has increased across the years, annually by 3%. It is absolutely necessary to rebuild the equipment reserve to cover the costs of future major purchases. The building repair fund is money that should be held for future major building maintenance such as window replacement, roof replacement, major landscape issues, etc. -12- tf' I: 0 '" 0 0 ,,; ,,; on CO '" CO 0 0 N ., 0 '" ~ on ... lit lit ., 0 0 ~ 0 0 .,; .,; 'N 0:: '" ... '" ... ... 0 ... ... '" ... ... ~ lit ., 0 ~ 0 0 ,,; ~ .; ... 0 CO ., '" ~ 0 ... N ~ '" lit lit lit ~ 0 ~ 0 .; ,,; ,,; ot) :t ... ... '" ~ CO OS; on ~ '" ... lit lit ., 0 ~ ... 0 .,; ..: .; ot) t: ot) ... ot) ~ on ~ on ... ... lit lit '" 0 ~ N 0 on ..; .,; .; '" ~ '" ot) ... ...; ",' ~ ., t- ~ N >- lit lit ... ~ 0 0 0 '" '" 0 ., I- .,; ,,; .; (/) I:: g 0 ... :t N :i ~ ot) W N '" W ... lit lit II. '" 0 '" W ... "! ... ,,; r .,; (/) ot) to '" :t '" '" 0; <Ii co 0 ., ~ t: ! ... lit lit on 0 0 '" 0 CO II. ..; ~ ..: ;g ., 0 N ... 0; ~ ~ ~ '" ~ l- N W ... lit lit :E t- O ;Z ., 0 J: .,; ~ oJ I- ot) on ... CO ., ~ OS; ,,; ~ 0 ., ~ ~ Z ... lit lit ... 0 0 '" "! 0 .; r ..: '" '" ~ CO. ... ~ ... on ., t: ~ ... lit lit '" 0 on ... 0 ~ ..: !;i ... ... '" 0 0 ,,; 0 on ~ :2 ... lit lit '" 0 I;; ot) 0 .,; ~ lli ., '" ... N N ~ ~ lit lit lit 0 on "! "! r '" on t- '" ,,; .,; ~ ~ .. .. 0..:- ;; .. ~ ~ ." :! i " U III .2 Q. ~ ... .. U > .. 0 III .. on .. l!! u .E -13- /;1 # OF PAYING & NON.PAYING # SUB. INCREASE SUBS. AT YEAR OVER PREVIOUS YEAR END YEAR % INCREASE 2005 20,145 1,105 5.80% 2004 19,040 1,268 7.13% 2003 17,772 1,564 9.60% 2002 16,208 -860 5.0%- 2001 17,068 -2,053 11%- 2000 19,121 215 1.1% 1999 18,906 936 5.2% 1998 17,970 1,202 7.2% 1997 16,768 1,059 6.7% 1996 15,709 741 5.0% 1995 14,968 1 ,480 11.0% 1994 13,488 1,536 12.9% 1993 11,952 371 3.2% AVERAGE: 659 4.5% EST. PAYING PAYING SUBS AVERAGE % SUBS YEAR END End 2005 INCREASE '06 20,145 4.5% 21,051 SUBSCRIBER GROWTH (Based on Comcast Figures) -14- Jf "C 'cu 0- CI) CI) u. C) W 0- s:: o "C Q) tJ) CO CO c: o +'" ns - ::s u c; o s.. Q) .c ,- s.. U tJ) .c ::s (/) CI) In co e () s:: - =I:l: In .Q :J en C) s:: '>. co a. II CI) CI) u. C) CI) a. - In .r:. .... c 0 E - "'0 'CiS a. CI) CI) U. "'0 'CiS a. CI) CI) u. C) w a. Cii .... 0 .... CI) E e u. CI) E j:: 01OC\I C")COOOC'0f'- '<t1O'<tC\l...-OC\lOOC\l ...-_~.... I O>~IO~O_ 't'""""~1 IT"*'-':-~ '<t'<tO>T"""C")COOOOLOOO '<to'<tO>O>OOC'\l'<tT""" C\lT"""OT"""T"""T"""OlOCOCO mco,....-,....-r-:co,....-,....-l!'i~ ~~T""''\'''''''''~~~~'\'''''''''~ 0000000000 00000010000 ONcO<ciO>N~<cicOr--: O>O>C'0O>T"""'<tOCDCOC") ...-C\lC\lO>IOf'-OCD-;tC\l "":l!'i"":cil!'immcil!'ici 0>'<t00>'<t0>1OC\lr--C'0 LOLOLO'<tC\l'<t'<t'<tC')C\I fflfflfflfflfflfflfflfflfflffl ESTIMATED REVENUES 2007 PEG Fees ($2.73/19,500 Subs./Mo.) Operating Reserve (Bal. Frwrd. 1/07) Capital Equip. Fund (Bal. Frwrd. 1/07) Truck Replacement Fund (Bal. Frwrd. 1/07) Other Income Interest Income $638,820 $145,499 $335,227 $10,000 $84,935 $20,000 ESTIMATED EXPENDITURES Media Center Operating Budget Operating Reserve (1/4 of Budget) Equipment Purchases Vehicle Replacement Fund Capital Equipment Fund $647,482 $161,788 $193,600 $20,000 $211,611 -16- ~u I- - w - C) C :J m '" ~ 0 w - 0 l- N Z W 0 <( - I-- C I-- W :E I- ""'"w oCJ oe N:::J m 'ti <( ..c ... c E CO"t o o NI- W C> C ::) m ..J \0<( 0:::J 01- NO <( (J) W I- o Z - ..... - &a> "0 0) ::l "0 .c co~ c: o EE J2r:::E E E ~ r::: (I) r::: r::: 00 ro ~ o 0 ~ 0 :> e (I) (I) r::: '00 (J) () () .- 00 ~ -0 "'C 00 '0 00 a.. :>:;;:::':::r:::::':::iijili-gO:JlO > >r:::ero>Ir:::::':::::':::N :!:::::.....OI-~>c::.:::"Or:::a a.'5.E~ c:t:: (1)-(1) ~_!!!r.::.\ 0000(1) Jroroco .cE~ ~ ';:' ~ .-: 0 :2: ~.!::! ro 00 O(J) 0:::0..... ~(j) en t: (J) en <(~ ro :aU) lO ~:2: Nt--lOC"lOO~O~t--coO '<;tOOOOI'--'<;t('l)N('I)('I)'<;tO O'lt--lOlO'<;tC\lO'lC\lO('l)lO ~ ~ I'-- M ".j 0> -:t 0) M 1'--- ll'i ('I)C\l'<;t'<;t '<;t('l)('I)('I) lO('I)C\l OOO'l'<;tCONCOCOt--O'llOO lOOO<OO'lCO..-~'<;t<01'-- OOOOOI.{)('I)LOO~t--O ""-00 u1-:t('l)C\l""-('I)t--O'l ~ ~~~T"""T"""T"""T""" 00 C\lC\llOC"lLOOCOOOC\lCOO ~LO('I)OlOOO'<;tooO'lOO O~OOC"lN~LOO'<;tCO ...-~..fNa5t--Noo....--:t ('I)C\l'<;t'<;t('l)('I)('I)('I)LO('I) 00 o o I'-- ...-'<;tI'--"<;tCO('l)O'lO>LOOOOO '<;t('l)I'--C"l('l)O'lC\looo> OOlOOOO~('I)~t-- O...-N~LO-:tOLOr..: ('I)'<;t'<;t"<;tN('I)LO('I)'<;t l- LL l- lL ..-.. ..- ......... ~ E ~ 0 1-- 0 I- () u.:s 0 I- ~ - 0 I- I- LL j::1~ .!::! :S"E I- .f1LL IJ:::~ ~ LL :s -E (j) (; 0 u. 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E O(jj :c Q) ('; Q) -a -0 :; ..... 0 ::l Q) Q) '~.U5 5> 5> ((l oS 0 :2 > u:: -20- 11 Equipment Purchase Plan 2007 ~ Studio A Camera/CCU/Controls Packaae $ 32,000.00 3 $ 96,000.00 Triood w/dollv $ 6,500.00 1 $ 6,500.00 Teleoromoter Screen $ 1,200.00 1 $ 1,200.00 Clear-Com system $ 12,000.00 1 $ 12,000.00 DVCPro Decks $ 7,000.00 2 $ 14,000.00 Microohones, Lavaliere $ 550.00 4 $ 2,200.00 Microohones, Boom $ 500.00 1 $ 500.00 800m Microohone Stand $ 500.00 1 $ 500.00 Set Materials $ 2,000.00 1 $ 2,000.00 . Staff Portable Sub Total: $ 134,900.00 k.: i~~'i?1.f~~~ .~t;~~ mlr1ZiJtftt.f 1 $ 7,000.00 1 $ 300.00 1 $ 1,000.00 $ - ~!!li~~1\l$j'i;:!li;W~W.~tfi.;'~<I'h}~~~~i~JiL~~=~< $, ~":""~" '~.o.o.oo ~'iJ!:,_;p,_",",~'-.~)"Ji~~~--,,~_.,J1~'{1J;i,__~\~ill,".,,__._I~'_ i1.l\ ~_ _~. "."......" ~ Wide Anale Lens $ 9,000.00 1 $ 9,000.00 SDI Comoatable WaveformNectorsco $ 4,300.00 1 $ 4,300.00 $ - Sub Total: $ 13,300.00 ",:,"P;""'es'1iI ,!!;~~~~". .... '.'..", ~> 6,500.00 1 $ 6,500.00 HD Camcorder Packaae Dollv DV Camcorder Lens Extender $ $ $ 7,000.00 300.00 1,000.00 Truck ~~~;~I~~.~ I I I .,.,. ~.L.----I '~ Eauioment Total: ,!OtF T ax: i;"$.:i~~~;~t!r.~;t~~)~~~'Or~~5tl'lO;' Total: '}:$'#~p~r,!~w1~i\q:!?ifwkI~mg~J!15r(J(t; -21- ~~ North Metro TV Budget Line Item Supporting Information Personnel · All salaries are estimated to include any expected step increase and a maximum of a 3% cost of living increase. The actual cost of living increase will be determined and approved by the Cable Commission, based on the average of member cities' increase, at their December 2006 meeting. · Both the Executive Director and Programming Coordinator salaries are split between the two budgets. · Five part-time production assistant positions have been added. They would earn up to $425 per month (up to 42 hours per month at $10 per hour) and would not be eligible for health benefits or PERA. Payroll taxes would apply. Some of the benefits of having a pool of part-time producers include a more reliable and consistently trained crew for van shoots, the ability to produce more programs, a reservoir of individuals who may be interested in also working for cities to tape meetings, and an overall increase in the quality of our final product. The technical quality of our programs is of particular interest to us, as we are working to develop a commercial sponsorship program. Benefits · Health/Dental coverage, ADD, STD, L TD, Life and Workers Compo The NMTC's contribution to PERA increased from 6.0% to 6.25% of employees wages. Insurance/Bonds · Insurance was increased 10% for 2007, primarily to reflect the increased budgets. Office Expenses · Building security is based on 2006 151 quarter costs and is split SO/50 with the Media Center. · Postage and subscriptions covers the cost of mailing dubs, equipment for contract maintenance, magazines, and other postage for the Media Center. · Office supply line item reflects costs associated with printing publicity materials, printing labels for dubs, and potential problems with older printers and fax machines. · Telephone/lnternetlWeb Hosting costs reflect additional web costs, increases in telephone costs, and the annual phone software upgrade. Split SO/50 with Commission. · Trash, Recycling, and Janitorial are based on current actual costs including inflation considerations. Split SO/50 with Commission. · Building maintenance includes lawn care, snow removal, heating/cooling maintenance contract, annual fire inspection, carpet cleaning, window cleaning, -22- 10 landscaping needs, and miscellaneous costs. Costs are based 2006 actual costs, and consider an increase. Split 50/50 with Commission. · Building utilities include gas, electric, and water. I think we all know why this line item was increased. Other Administrative Costs · Advertising/Marketing includes printing for flyers, rate cards, and other promotional materials. It also includes clothing items for the volunteer rewards program. · Audit is based on 2007 actual cost and rounded up to cover anticipated annual increase in cost. Split SO/50 with the Commission. · Awards Ceremony/ Entry Fees includes the trophies, food, and facility for the annual awards ceremony and entry fees for national video contest. · Conferences: Because of tight budget constraints we plan to send people to the local MACT A conference only. · Memberships include The Alliance for Community Media, the local arts alliance, and Sam's Club. Vehicle Expenses · The gas line item was increased to reflect the increasing cost of fuel and perhaps a second fleet vehicle. Production Expenses · While we have a staff vehicle, shoots often occur simultaneously requiring some staff to utilize their own vehicles. · Bulbs/Batteries/Other Production Costs include: Camera Batteries $2,500 Gaffer tape $500 Studio Bulbs $1.000 $4,000 · Computer Upgrades include rebuilding several workstations and upgrading some software. Capital Expenditures . Capital expenditures include all equipment necessary upgrade Studio A, add an encoder to master control so we can encode three programs at one time, an HD camcorder for higher quality ad options, and various microphones, lenses and pieces of test equi pment. . We would like to purchase a cargo van so that we can transport our scaffolding more efficiently and safely. A used van would be fine. -23- 11 en w o ~ z u:: 0::: w ... z w o <( C w :e Q) - as E :;:l II) w "- as ~ ~ u: ..... ..... o N o ..... o N en o o N <Xl o o N .... o o N <0 o o N :;Jill ::>0 1-0 UN <C W ::J Z W > W ~ C W !;i :E i= l/) w ~ >< gg q~ ON ~>< o o c>? ~ goo 0(\10 I'COO O~O tOcDqaqr--:.~ ~~g ~:e~ ~ >< 0:5 ~"':. m~ m>< 1l? ~ ;~o omo <C!.l':.8og~g t::~o LOcOO 't-('4oq- C\lr---C\I ~ >< ~~ ~~ :8>< ~ ~ N<XlO OvO ;b~o 0010 .. -OoO<oc-O ~~g gf~~ ~ >< ~g ~~ ~>< ,... <Xl N ~ ~~g g~g ~~qOqqo <0__0 0"10 T"""(\IN C\lt--C\I ~ >< og ~"l. oi~ ~>< '" ..... ~ 8l~g g~g ~~qOq"!.q '<t<'>0 1{)0l0 T"""(I")T""" 'C""""COC\l 't N X "'''' '<tN c5 tO~ "'..... <D~ ~ ~ij!; g~g ~~ooC!.<:qq MOl 0......0 T"""('t) ~(J)C\I o 0> ,... ,... 0> I{) ~~ 001{) o <Xl <'>NN g~oo~~~ T"""('t) 'C""""COT""" ~ ci::ti" __.9- -s 5-g~ o-LL :J 0 _o~-"LLU) ca.O .c ~8~f~ ID----rn ~-o",o",o,g.c ~~~~~~E O::ooo.oelo g>LLLLLLE5i~ ~~~~~E;;; ffi~i~.ri'g.~ Oa.(ij(ij(ij~5-2 rorolIlowE >< .; .n :J l/) X m m tfLL elm ~e:. ... o ..... a; ..... <"t ..... 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'<t ,..: en .... ..... o = ... ..; <0 .... .... o o o c5 N ..... <Xl '<t ..; ... "!. ..... o en o en ..; an "!. o N an ..... o' ... ..... ~ o I- '" U) t1l 13 '5 a. '" U :E ~ 11 COUNTY OF ANOKA PROPERTY RECORDS AND TAXATION DIVISION GOVERNMENT CENTER · 2100 3RD AVENUE · ANOKA, MN 55303 FAX (763) 323-5421 · Property Assessment · Property Records and Public Service · Property Tax Accounting and Research RECEIVED JUN 2 1 2006 June 19, 2006 City Clerk Centerville City Hall 1880 Main St Centerville MN 55038 CENTERVILLE, MN Re: Local Board of Appeal and Equalization Training Dear Ms. Bender: As you know, state law requires that at least one member at each meeting of the Local Board of Appeal and Equalization has taken a Department of Revenue local board training course within the last four years. I am notifying you as a courtesy that the Minnesota Association of Townships is offering "Board of Appeal and Equalization Certification" as a workshop during their summer short course. Enclosed is a pre-registration form if any of your board members are interested. Should you have any questions regarding this training please contact the Department of Revenue directly. Sincerely, ~ e;,~ Mary Boyle Principal Appraiser Affirmative Action I Equal Opportunity Employer