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HomeMy WebLinkAbout2008-06-25 CC Packet tJ. terviIfe ~ 'EstafJ{isfid 11157 CITY COUNCIL MEETING AGENDA COUNCIL MEETING Wednesday, June 25, 2008 6:30 p.m. I. CALL TO ORDER 1. Roll Call II. PUBLIC HEARING III. OPEN FORUM: An opportunity for members of the public to address the City Council on items not on the current agenda. Items requiring Council action maybe deferred to staff or Boards and Commissions for research and future Council Agendas if appropriate. You will be limited to two (2) minutes and we ask that you conduct yourself in a professional, courteous manner, and refrain from the use of profanity. Failure to abide by this policy may result in the loss of your privilege to speak. Persons wishing to speak will be required to complete a sign-up sheet and give it to the mayor or a staff person prior to the start of the meeting. IV. APPROVAL OF AGENDA V. APPROVAL OF MINUTES 1. June 11,2008 City Council Meeting Minutes (Pages 1-15) VII. CONSENT AGENDA 1. City of Centerville June 12, 2008 through June 24, 2008 Claims (Page 16) 2. Centennial Lakes Police Department Claims through June 12, 2008 (Pages 17-21) 3. Centennial Fire District Claims through June 16,2008 (Page 22) VI. A W ARD SIPRE SENT A TIONS/APPEARANCES 1. CERT Team Introductions 2. Centennial Lakes Police Chief Bob Makela - 2007 Annual Report 3. ABDO, EICK & MEYERS, LLP - Mr. Steve McDonald (2007 Audit) VII. OLD BUSINESS 1. Res. #08-0XX - Accepting Bids for 2008 Street Seal Coat Project (Pages 23- 25) VIII. NEW BUSINESS 1. Ordinance # _, Second Series - Amending Chapter 51, Section 51.08 Relating to Sewer & Water Connection (Page 26) 2. Hidden Spring Park - Approval of Shoreline Restoration Plan (Pages 27-32) IX. ANNOUNCEMENTSIUPDATES 1. City Administrator, Mr. Dallas Larson X. ADJOURNMENT * * REMINDERS ** Planning & Zoning Commission Meeting - July 1, 2008, 6:30 p.m. Council Chambers Parks & Recreation Committee Meeting - July 2, 2008, 6:30 p.m. Council Chambers Independence Day - July 4, 2008 - City Hall Closed City Council Meeting - July 9, 2008, 6:30 p.m. Council Chambers CITY OF CENTERVILLE CITY COUNCIL MEETING June 11,2008 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held their regularly scheduled meeting on June 11, 2008, at City Hall, 1880 Main Street. PRESENT: Mayor Mary Capra r!l Council Member Linda Broussard-Vickers /r,f\17fDll9J Council Member Michelle Lakso ~ [fJ[fJ[fJ r?@\J \3 Council Member Tom Lee r\ll@ ~ 0 U Council Member JeffPaar Lf\J 0 City Administrator Dallas Larson City Attorney Kurt Glaser City Engineer Mark Statz STAFF: I. CALL TO ORDER Mayor Capra called the June 11, 2008, City Council meeting to order at 6:35 p.m. II. PUBLIC HEARING Mayor Capra inquired whether there was anyone who wanted to speak during this Public Hearing. No one came forward to speak. Motion bv Council Member Paar. seconded bv Council Member Lee. to close the June 11.2008. Pubic Hearine:. Motion carried unanimouslv. III. APPROVAL OF AGENDA Mayor Capra added the following items to the Agenda: Mayor Capra made the following change to: IV. Approval of Minutes: Added: "Item 7 - June 10,2008, City Council Work Session Meeting Minutes (page 40a-40b )" Mayor Capra made the following changes to V. Consent Agenda: Item 1 - Change pages to "(Pages 41 & 41a)" Added: "Item 5 - St. Genevieve Church's Request for Temporary Gambling Permit- Chicken Dinner (August 17,2008) (Bingo, Raffles, Paddlewheels, Pull-Tabs & Tipboards) Waive Fee (Pages 45a-45c)" City of Centerville City Council Meeting June 11,2008 Added: "Item 6 - All Around Rental Request for Rock Wall at Battle of the Boards & Bands - June 14,2008 - Fees to be Paid by Participants (Page 45d)" Mayor Capra made the following changes to VI. Old Business: Added: "Item 2 - Res. #08-0XX: - Declaring Cost to be Assessed, Ordering Prep. Of Proposed Assessment & Calling for a Public Hearing - Part of Old Mill Road" Added: "Item 4 - Extend Purchase Agreement for Property in Block 7, Downtown to Centerville Mainstreet, LLC/Beard Group (Pages 45f-45r)" Mayor Capra made the following change to VIII. New Business: Item 1 - Change pages to "(Page 46-46i)" City Administrator Larson added Item 4: Encroachment Agreement to VIII: New Business. City Administrator Larson added Item 5 : Water Hookup Issue Regarding 7146 Shad Avenue to VIII: New Business. Councilmember Lee added Item 6: Police Jurisdiction/Mutual Aid to VIII: New Business. Motion by Council Member Paar. seconded by Council Member Lee. to aDDrove the ae:enda as amended. All in favor. Motion carried unanimously. IV. APPROVAL OF MINUTES 1. Mav 14. 2008. City Council Meeting Minutes Mayor Capra stated that in the third to the last paragraph on Page 5 of 6, the words "City Works Staff' should be replaced with "Public Works Staff." Councilmember Paar stated that his name is spelled incorrectly throughout the minutes and this should be changed. Mayor Capra stated that on Page 6 of 6, Item 5 should be reworded to read "excellent job she did with CERT." Motion by Council Member Lee. seconded by Council Member Lakso. to aDDrove the May 14. 2008. City Council Meetine: Minutes as amended. Motion carried unanimously. 2. May 14. 2008. City Council Closed Executive Session Meeting Minutes Page 2 of 15 2 City of Centerville City Council Meeting June 11,2008 Mayor Capra stated that the meeting times should be changed to read that the City Council Meeting recessed at 9:20 PM for the Closed Executive Session and was reopened at 10:50 PM. Motion by Council Member Lee. seconded by Council Member Lakso. to approve the May 14. 2008 City Council Closed Executiye Session Meetin!! Minutes as amended. Motion carried unanimously. 3. May 21. 2008. City Council Work Session Meeting Minutes Mayor Capra stated that the wording in the second paragraph on Page 12 of 14 should be reworded to read, "she added that the City of Centerville does not build the collector streets different than the cul-de-sacs." Councilmember Lee stated that it looks like there is something missing in the last paragraph on page 10 of 14. He stated that maybe it should say, "City Engineer Statz stated that whether or not residents are on City water, they benefit from having City water available in their community. If they are not paying for it, someone else will have to." Motion by Council Member Paar. seconded by Council Member Lakso. to approve the May 21. 2008. City Council Work Session MeetinS! Minutes as amended. Motion carried unanimously. 4. May 28. 2008. City Council Meeting Minutes Councilmember Lakso stated that the sentence in the 7th Paragraph of Page 9 is confusing. Where it states that "he stated that he would support it," she didn't know who 'he' is. This should be clarified to indicate Council member Paar. 5. May 28.2008. City Council Work Session Meeting Minutes Councilmember Lee stated that sentence in the 16 Paragraph of Page 4 of 7 should be reworded to read, "Councilmember Lee stated that the yards upstream are considerably wetter, and it is closer to the rear of the property line." 6. May 28. 2008. City Council Closed Executive Session Meeting Minutes Mayor Capra stated that the wording for the times on the meeting should be changed. She stated that the Closed Executive Session recessed at 9:50 p.m., the meeting was reopened to the public at 10:50 p.m. and a motion to adjourn was made by Councilmember Broussard-Vickers and seconded by Councilmember Lee. Councilmember Lakso stated that she is shown as being in attendance at the May 28, 2008 Closed Executive Session Meeting, and she was not. She requested that this be corrected. Page 3 of 15 3 City of Centerville City Council Meeting June 11, 2008 7. June 10. 2008. City Council Work Session Meeting Minutes Mayor Capra stated that the Minutes should be revised to state that the June 10, 2008, City Council Work Session Meeting was called to order at 6:30 p.m. Motion bv Council Member Lee. seconded bv Council Member Paar. to approve the Mav 28. 2008. City Council Medin!!: Minutes. the Mav 28. 2008. City Council Work Session Meetin!!: Minutes and the Mav 28. 2008. Closed Executive Session Meetin!!: Minutes as amended. Motion carried unanimouslv (5/0). v. CONSENT AGENDA 1. City ofCenterville May 29. 2008. through June 11. 2008. Claims Discussion ensued. 2. Trio Inn Request for Annual Renewal of2 A.M. Liquor Serving License Discussion ensued. 3. Mediation Services of Anoka County Request of $420 for the 2009 Budget Discussion ensued. 4. Ms. Tracy Zarembinski's Request for Massage Therapist Certificate to Practice at Serenity Now Healing (Successful Background Check and Educational Requirements Met.) Mayor Capra stated that Ms. Zarembinski had a successful background check and her educational requirements have been met. 5. St. Genevieve Church's Request for a Temporary Gambling Permit for their Chicken Dinner on August 17. 2008 Mayor Capra stated that they would be having Bingo, Raffles, Paddlewheels, Pull-Tabs and Tipboards. She added that they are also requesting that the fees be waived. 6. All Around Rentals' Request for Rock Wall at Battle of the Boards and Bands on June 14. 2008. Mayor Capra stated that fees would be paid by the participants, and all Certificates of Liability are in place. No one on the City Council had objections. Motion bv Council Member Lee. seconded bv Council Member Paar. to approve Items 1. 2. 3. 4. 5 and 6 of the Consent Ae:enda as presented. All in favor. Motion carried unanimouslv. Page 4 of 15 4 City ofCentervilIe City Council Meeting June 11,2008 VI. A W ARDSIPRESENT A TIONS/APPEARANCES None VII. OLD BUSINESS 1. 2009 Street Proiect Res. #08-015 - Ordering Imorovements City Administrator Larson stated that resolution Exhibit A describes the original project, as it was proposed in May. The Exhibit B describes the area that was proposed from the work session June 10. The first resolution as drafted, orders the improvements as desribed in Exhibit B. The second resolution authorizes plans and specifications on the streets in exhibit B, except for the C type improvements on Peterson Trail south of Fox Run, Houle Circle, Hayfield and Fox Run west of Peterson and on Center Street, Ivy Court and Sumac Court. It was understood that he second group of streets may be done if bids are good on the first group. City Engineer Statz passed out a map, which is representative of the discussion at the June 10 City Council Work Session Meeting. It was requested that the City Council review this for the public. The project is absent Mound Trail, Lavelle, Center Street, the two cul-de-sacs, and the Robin Lane area, which are C1 improvements, along with Ivy, Sumac, Fox Run, Peterson Trail and Prairie Drive. Mayor Capra inquired whether anything had changed since that meeting on June 10. Councilmember Broussard-Vickers inquired why they are looking at doing 28 feet street on Peltier Lake Drive and adding curb and gutter. She stated that it does not have it now, it has a bituminous curb. She questioned why 25 feet does not meet the standard now and inquired whether it would be possible to get easements from people to construct watermain in the boulevard. Councilmember Broussard-Vickers added that this is probably one of the largest assessments they have. She added that it is just a narrow road and, if they did not do a concrete curb, the price would go down considerably. City Engineer Statz replied that concrete is essential. He stated that just because they will not meet the normal standard, they should not throw the improvement out the window. He added that curb and gutter is not for style, it is for proper drainage and it keeps the street together. It is important to have a better product on the road itself. It also brings value to the neighborhood. He stated if they are going to spend the money, they should not stop a nickel short. By doing that, they would not be doing justice to the expenditure. Twenty-eight feet is the minimum he would recommend. Mayor Capra inquired about the width of Peltier Lake Drive. She stated that they had to take out trees to make it wider. Page 5 of 15 5 City of Centerville City Council Meeting June 11,2008 City Engineer Statz replied that with Peltier Lake Drive, they made a compromise going down to 28 feet. He stated that 24-26 feet is generally not an acceptable width. He added that when the curb on each side is 2 feet wide, that brings the street itself down to 24 feet, so 28 feet is not all that wide. Councilmember Lee stated that Brian Drive is wider north of Main Street. City Engineer Statz replied that the small piece of Peltier Lake Drive is where the road is in better condition. He added that reducing the street width would provide only minimal savings. Councilmember Paar inquired about what could be done with the houses on Peltier Lake Drive, where 14 is coming through. Mayor Capra replied that City Attorney Glaser is looking into it. City Engineer Statz stated that there are another dozen cases that may have been assessed before, and that those issues will be worked out in a fair manner. Councilmember Paar stated that things would be resolved along the way. City Engineer Statz stated that the County is realigning that intersection. He said they are paying for all of it, and he does not know if they will get any Federal funds back. He added that they would have a lot of opportunities to work these things out individually as they go along. Motion by Council Member Lee. seconded by Council Member Paar. to annrove Res. #08-015 - Orderine: Imnrovements - 2009 Street Proiect. All in favor. Motion carried unanimously. Councilmember Paar suggested that they make sure each property is not being over assessed. He stated that if there is 50 feet of property line, and 60 feet was recorded in error, the property owners need to be reassured that it will be double checked and corrected. Council member Broussard Vickers expressed concern that the Council should be pretty committed to moving the project forward unless the bids are way above expectations, given the investment that will be made in engineering plans. City Engineer Statz stated that the engineering cost to bring the approved work to bid would be about $170,000. Councilmember Broussard-Vickers stated that there is a consensus to reconsider the existing ordinance requiring hook-up to city water within one year and/or change the date requiring all properties to be connected to City water-currently required by the end of 2012. Page 6 of 15 6 City of Centerville City Council Meeting June 11,2008 City Administrator Larson stated that City Attorney Glaser needs to look at it first, so it is not on this Agenda, but it will be on the next Agenda. He added that they would fix the resolution number contained in the draft resolution. Motion by Council Member Paar . seconded by Council Member Lee. to aDDrove Res. #08-016- Orderine: Plans and SDecifications on ImDrovement - 2009 Street Proiect. All in favor. Motion carried unanimously 2. Res. #08-017 - Declaring Costs to be Assessed. Ordering Prep. of Proposed Assessments and Calling for a Public Hearing: - Part of Old Mill Road City Administrator Larson reported that this project is close to completion and there is only minor work to be done. He stated that a Public Hearing would be scheduled for approximately 1 month from today's date. Motion by Council Member Paar. seconded by Council Member Broussard Vickers. to aDDrove Res. #08-017 - calline: for DubHe hearine: on sDecial assessments for the Old Mill Road ImDrovement. All in favor. Motion carried unanimously 3. Appraisal Updates/Expenditure of Funds - Old Mill Road & Backage Road Special Assessments City Administrator Larson suggested that the City Council authorize an appraiser to review Old Mill Road, based on actual conditions to make sure we are in good shape with the proposed assessment. He stated that the appraiser should also take another look at Backage Road property as we prepare to assess that project. He added that they could take it a step further to engage a second appraiser to provide a second opinion. He stated that the cost would be a couple thousand dollars to update previous work, and $4-5,000 to confirm with a second appraiser. City Attorney Glaser stated that having a second appraiser would give us more tools to look at. He stated that there has been a lot of contention on both projects, and it would be in our best interest to be very accurate. Mayor Capra inquired whether the City Council agreed. Councilmember Broussard-Vickers stated that she would want to wait to see what the first appraisal showed before agreeing to schedule a second one. Councilmembers Lee, Paar, and Lakso were in favor of getting a second opinion to ensure that there are no surprises. City Attorney Glaser stated that they would adjust for market conditions at the same time. He added that, if both appraisers are close, the City will have a strong case. Page 7 of 15 7 City of Centerville City Council Meeting June 11, 2008 Motion bv Council Member Paar. seconded bv Council Member Lakso. to approve the expenditure of funds - not to exceed $8.000 - for an appraisal. and a second confirmine: appraisal for Old Mill Road and Backae:e Road. Motion carried unanimously. 4. Extend Purchase Agreement for Property in Block 7. Downtown to Centerville Main Street. LLC/Beard Group (Pages 45f-45r) City Administrator Larson stated that the Beard Group applied for outside funding and was turned down last year. They have reapplied and need to have the Purchase Agreement updated, because the original one has expired. The new date would be December 30, 2008. Mayor Capra replied that they would get their results in October, but they would not be able to start construction until next year. Councilmember Lee made a motion. seconded bv Council Member Paar. that an extension to the Proposal Aereement be approved. Motion carried. (4/0/1) Council Member Broussard-Vickers abstained. VIII. NEW BUSINESS 1. Contaminated Soils/Downtown Area City Administrator Larson reported that in the process of the County doing the road project, they found signs of contaminated soil at 3 locations, causing odors resembling gas or diesel fuel. City Attorney Glaser stated that if they experience odors of gas or oil smells, the County may be able to leave it in place. PCA may not make them change it. If the City then builds next to that road, the vapors could seep into the building next door. City Engineer Statz showed on the screen Area 1, 5 and 6 around Main Street, where the odors were found. He stated that they found tanks around Area 1. He stated that the issue for the City's concern is what would happen if they built, as the buildings next to the road may get transferred odors. He added that the County not have obligations to mitigate contaminated soil under the roadway. City Attorney Glaser stated that if the City does not act now, they might lose the opportunity to resolve the issue before the roadway is built. Page 8 of 15 8 City of Centerville City Council Meeting June 11,2008 City Administrator Larson stated that there might be some Petro Fund dollars available; but the funds might not be available until they had a bid for the services. He also was not sure if it could be applied to the problem after the fact. Councilmember Lee inquired as to what the cost would be. City Engineer Statz replied that, in general, they would take soil to see how deep the contamination is and, from there, get a cost. Councilmember Broussard-Vickers inquired whether the County had been put on notice that this is an issue. City Administrator Larson replied that the County would work with the City if the City has a plan Councilmember Lee stated that it would be foolish not to look into what the expense would be. Mayor Capra inquired about what is the most urgent area. City Administrator Larson stated that the area along Main Street between Progress and Centerville Road could be the most urgent problem. City Engineer Statz stated that they have to determine how serious the problem is, and they are still searching for good advice. City Engineer Statz inquired whether the City Council would authorize an expenditure up to $12,000. Councilmember Paar inquired as to what part of the contamination will actually be on the County road. City Engineer Statz replied that that is what this proposal will find out. He added that they are still trying to determine how far out the odors will go. A proposal was received from Pro source Technologies, but he isn't sure the scope of work in the proposal is what is needed. Councilmember Broussard-Vickers stated that she does not like this company's contract. She stated they have no professional liability, and the contract limits their liability. She added that she does not want that type of wording in the contract. City Attorney Glaser stated that they might not use this company. City Administrator Larson stated that there could be a way to put a barrier on the basement walls of buildings to prevent a problem. Page 9 of 15 9 City of Centerville City Council Meeting June 11, 2008 City Attorney Glaser stated that $10-15,000 is the ballpark estimate of what the cost will be. Councilmember Lee made a motion. seconded bv Council Member Paar. that the CitV Enl!ineer investi~ate the contaminated soil. provided that the budl!et not exceed $12.000. Motion carried unanimouslv. 2. CSAH14 Proiect - Permits for Street Obstruction/Opening-Waiver of Fees City Administrator Larson stated that there had been a problem with the CSAH 14 project in the area of Peltier Lake Drive. The road was cut off and school buses dropped children off in other than the normal locations. Neither the County or its contractor had notified the school or the neighborhood that he street would be closed off. When complaints were referred to the County, people were told it was a City problem. Staff determined that permits would be required and the County was concerned about that. The City Administrator told them he would bring it before the City Council. The fee amount is not huge, but the City has seen positive results since the permit requirement went into effect. Mayor Capra stated that in cases of emergencies, if we don't know a road is blocked off, it could cause a major problem. City Administrator Larson stated that the County or its contractor has created a handout related to Lakeland Circle that was sent to the neighborhood, and it provided the job superintendent's phone number. He added that the City could waive the fee but still require the permit. Waiving the fee may be a good will gesture. Mayor Capra stated that she is fine with waiving the fee, but the permit would let the City know when the roads are blocked. Councilmember Lee stated that it is too bad the City had to do this to get them to do what they should have done all along City Administrator Larson stated that the permit imposes some obligations, and the County seems to be responding well. Councilmember Paar stated that part of him would like the County to pay fees. He stated that he cannot believe the County would blame the City. Mayor Capra stated that Councilmembers approved of requiring permits. She inquired whether they should charge a fee. Councilmember Paar suggested that the fee should be based on performance. Councilmember Broussard-Vickers stated that she wants the fee. Page 10 of 15 10 City of Centerville City Council Meeting June 11, 2008 Councilmember Paar made a motion. seconded by Council Member Lakso. that the City require permits for street construction and the waiver of the fee would be subiect to chane:e if the performance slides. Motion carried (4/1). Councilmember Broussard-Vickers opposed. 3. Shm for Public Works Building City Administrator Lee Council consider a sign for the new Public Works Building. He added that a 3 X 5 sign would cost approximately $1,500. He stated that they could not paint a sign directly on the wall as it would violate the City Code relating to signs. Mayor Capra requested that the City Council get more options. City Administrator Larson stated that a directional road sign on County Road 54 should be doable but that signage at the new location should be provided. Staff was instructed to see if other less costly options are available. 4. Encroachment Agreement City Administrator Larson stated that residents Steve and Jenny Dosh, 7095 Cottonwood Court, requested approval to put a storage shed on the back comer of their property, which would be on the utility & drainage easement. He added that it would be a lOx 12 shed, and there is a 25-foot easement. Councilmember Lee stated that the only problem is that it is on an easement. He suggested putting the shed on blocks in case it needs to be moved. City Administrator Larson stated that Public Works Director Palzar does not think it will cause any problems. Jenny Dosh stated that as shown in the pictures, the back area is really wet but that proposed location which is in the easement is higher ground. Steve Dosh stated that the shed would be 10 feet north of the border. City Administrator Larson stated that it would be better not to put in a concrete floor (in case it would need to be moved). Mr. Dosh stated that they would not put electric in the shed. Councilmember Broussard-Vickers made a motion. seconded by Councilmember Lakso. that the storae:e shed for 7095 Cottonwood be approved subiect to the requirement that the landowner execute an encroachment ae:reement. Motion carried unanimously. Page 11 of 15 11 City of Centerville City Council Meeting June II, 2008 5. Water Hookup - 7146 Shad Avenue City Administrator Larson stated that this property owner requested he be given a waiver to allow the on-site well to be repaired. The property owner is willing to sign an assessment waiver and agreeing to connect to city water by the end of2009. The property owner would like to be included in the 2009 Street project if the City provides connection to homes and specially assesses the cost. City Attorney Glaser inquired whether they would offer this to other people with the project. Mayor Capra inquired as to what would be the purpose to not do it. City Administrator Larson replied that it would be more cost effective if the city is doing many home services lines as opposed to an individual resident contracting for the work. He added that the property owner might also have the opportunity to have it financed by the City. Councilmember Broussard-Vickers inquired whether he was willing to sign waiver, not knowing what that total number is. City Administrator Larson stated that they would have to give him a "not-to-exceed" number. Councilmember Lee stated they would have to make sure the number is high enough City Administrator Larson stated that there is a line between the well, the yard, and the house that needs to be repaired if the well is allowed to continue. Councilmember Broussard-Vickers stated that it would make sense to allow the waiver agreement with a cost not exceed $8,000. City Engineer Statz stated that $3,000 - $5,000 would be the approximate cost if the city did the hook-up, plus a connection fee of about $1,700. Mayor Capra inquired about what the Resolution figure would be, regarding hook up fees in lieu of assessments. City Administrator Larson stated that it applies anywhere that watermain is available but has not been previously assessed. Councilmember Paar stated that he is all right with approving the property owner request. He added that water is available, and technically, he should have to hook up. If he is looking to get a better deal by including more people, the City can allow that as long as they can get it done by 2009. However, if the City does not offer the option at that time, they would still have to connect by the end of 2009. Page 12 of 15 12 City of Centerville City Council Meeting June 11, 2008 City Administrator Larson stated that the homeowner would sign an agreement that it would be done by 2009. City Attorney Glaser suggested that the City Staff enter into an Agreement for the assessment waiver and allowing the repairs to the well, with the understanding that their assessment waiver does not exceed $8,000. 6 Police Jurisdiction Councilmember Lee stated that Officer Aldridge said Centerville police could not go to assist in Hugo because Hugo is not in their jurisdiction. He inquired whether there is some way that jurisdiction issues could be amended. Mayor Capra replied that if there is a call for assistance, they can go. City Attorney Glaser stated that they do not have a Joint Powers Agreement between the Centennial Lakes Police and the City of Hugo.. Councilmember Lee suggested that this be put on the agenda for the next meeting Mayor Capra stated that there should not be all these "hoops" to jump through in order for our officers to assist. Councilmember Lee stated that when the 35W bridge collapsed, it took a week before they could send help. City Administrator Larson stated that Hugo asked Washington County to relay the message for assistance to Anoka County, but the message was never relayed to Anoka County. City Attorney Glaser stated that communication has been a problem. He added that they would see a County-wide response to this. Mayor Capra stated that this got the attention of a lot of people, and pointed out how we needed to be better prepared. City Attorney Glaser stated that it educated Washington County that Mutual Aid had to be requested before they could help. Mayor Capra stated that the issue is liability. She added that it is sad that that is the case, but it is the case. IX. ANNOUNCEMENTSIUPDATES 1. City Administrator. Mr. Dallas Larson Page 13 of15 13 City of Centerville City Council Meeting June 11, 2008 None. 2. Emergency Communications - City Hall (Capra/Lakso) Councilmember Lakso stated that they need a weather radio in City Hall. Mayor Capra stated that they would have to use City Hall or the Public Works Building as a command base. City Administrator Larson stated that they also need a stand-by generator at City Hall but not at Public Works. Mayor Capra stated that, at minimum, City Hall should have a weather radio. City Attorney Glaser replied that the cost of a weather radio is about $30. Councilmember Lakso stated that everyone is invited to the Storm Story on June 18 at the Police Department. She stated that they would have a storm presentation and give out great storm tips. They would give away a weather radio and would like to serve refreshments (popcorn and lemonade). All the expenses would not exceed $75. She added that they hope to get a good turnout. Councilmember Paar suggested to make the maximum expenses an even $100, and that they purchase a total of 3 weather radios - one for the City Hall, one for Public Works and one to give out as a prize at the event. Mayor Capra stated they would make sure every Council Member would have the emergency material and equipment needed: resolutions, GoAd, Disaster Kit, Long-Term Planning, etc. She added that the Councilmembers would be updated each year, with phone numbers, etc. City Attorney Glaser stated that the education should be required for new Councilmembers and a refresher should be required for the others. Councilmember Lakso stated that she would volunteer to be a trainer. Councilmember Broussard-Vickers stated that it would also be a good idea to have a little kit in their cars. Mayor Capra stated that the Councilmembers should keep their ID's with them. If they don't have one, they should get it redone. Mayor Capra requested that a warm thank you go out to all volunteers. She stated that Centerville stood out significantly. She added that Centex donated safety equipment, Page 14 of 15 14 City of Centerville City Council Meeting June 11, 2008 Cindy Johnson of Lutheran Social Services asked what to bring, as did many others. Mayor Capra stated that she is proud of how everyone came together. A motion was made bv Council Member Lakso. seconded bv Council Member Paar to approve the Emerl!:encv Storm Presentation and the Emere:encv Presentation Preparation fund - not to exceed $100. Motion carried unanimously. 3. Code Update City Administrator Larson stated that, at the last Work Session, they were not able to get to some of the chapters. Many of the chapters were covered at the Planning & Zoning Commission meeting, where they resolved a lot of the issues. He added that they have chapters up to 153 need to be looked at. He suggested that sometime in the next month or two, the City Council schedule a Work Session to look at changes to Chapters 30-153. City Administrator Larson stated that he would ask the Planning & Zoning Commission to look at sign regulations at their next meeting. Councilmember Broussard-Vickers inquired whether the Council has received a book of code revisions. City Administrator Larson replied that he received some of the early chapters, through 93 or so. He added that he would do it in the next week or so, so the City Council could start looking at it. Councilmember Broussard-Vickers suggested that they break up the chapters and assign different sections to different Council Members to review. x. ADJOURNMENT A motion was made bv Council Member Lee. seconded bv Council Member Broussard-Vickers to adiourn the City Council Meetinl!:. Motion carried unanimouslv. Mayor Capra adjourned the City Council Meeting at 8:28 p.m. Transcribed by: Bonita Kaska, Recording Secretary TimeSaver Off Site Secretarial, Inc. Page 15 of 15 15 ~tervi{{e 'EstaGfisl1t'd 18,,7 CITY OF CENTERVILLE 06/19/08 11 :48 AM Page 1 *Check Summary Register@ Name 10100 MAIN STREET BANK Paid Chk# 023447 ANDREW ROSS & PATRIOT Paid Chk# 023448 BONESTROO, ROSENE, Paid Chk# 023449 CENTENNIAL FIRE DISTRICT Paid Chk# 023450 CENTER POINT ENERGY Paid Chk# 023451 CITIES DIGITAL Paid Chk# 023452 EARL F. ANDERSEN INC Paid Chk# 023453 EATON, NANCY Paid Chk# 023454 GAMETIME Paid Chk# 023455 INTERNATIONAL UNION OF Paid Chk# 023456 LAUDERBAUGH, MYRNA Paid Chk# 023457 MENARDS - FOREST LAKE Paid Chk# 023458 MET. COUNCIL ENV. SERV, Paid Chk# 023459 TIME SAVER Paid Chk# 023460 TRI-STATE BOBCAT, INC. Paid Chk# 023461 US BANK CORPORATE TRUST Paid Chk# 023462 WINNICK SUPPLY Paid Chk# 023463 XCEL ENERGY Paid Chk# BI-WEEKL Y ACH Check Date 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/25/2008 6/12/2008 Total Checks JUNE 2008 Check Amt $1,000.00 TRACIE MCBRIDE PARK RENOVATION $90,552.77 BACKAGE RD/21ST AVE IMPR.- SER $26,627.50 QTRL Y FIRE PYMT $1,457.12 2085 W CEDAR ST - SERV THRU 5- $3,788.00 LASERFICHE ANNUAL SUPPORTS & U $121.41 PAINT FOR PARKS $55.36 FLOWER REIMBURSEMENT - TRACIE $11,170.90 COIL SPRING $60.00 UNION DUES - T PETERSON, A AND $75.00 REFUND - EXCAVATOR PAID - 08-1 $586.27 P.W. SUPPLIES $13,530.63 JULY 2008 SERVICES $456.21 P & Z MEETING - JUNE 3, 2008 $602.88 SERVICE REPAIR ON BOBCAT $37,437.50 #801112000 - GEN. OBLG. IMPRV. $92.24 PARTS $3,597.13 1880 MAIN ST - SERV THRU 6-4-0 $15,133.53 PAY PERIOD 12 $206,344.45 NOTE: There will be an update list of disbursements for approval on 06-25-08. 16 CENTENNIAL LAKES POLICE DEPT Check Register POLICE GL GL Posting Period(s): 05/08 - 05/08 Check Issue Date(s): 05/09/2008 - 05/31/2008 Page: 1 Jun 04, 2008 02:29pm 05/08 05/08 05/08 Date Check No Vendor No Per OS/21/08 OS/21/08 OS/21/08 Totals: 6769 6770 6771 Payee Invoice Description Jnv Amount 12,000.00 M 17,481.16 M 5,515.79 M 34,996.95 40177 DECISION RESOURCES, INC TELEHONE SURVEY 160562 PUBLIC EMPLOYEES INS. PROG S/I JUNE HEALTH INS 190625 SPEEDWAY SUPERAMERICA LLC APRIL FUEL M = Manual Check, V = Void Check I l_ 17 CENTENNIAL LAKES POLICE DEPT Check Register POLICE GL Page: 1 GL Posting Period(s): 06/08 - 06/08 Jun 12, 2008 02:50pm Check Issue Date(s): 06/01/2008 - 06/12/2008 Per Date Check No Vendor No Payee Invoice Description Inv Amount 06/08 06/11/08 6073 31240 VOID - JASON CORLEW TOBACCO COMPLIANCE 15.00 - M CK 06/08 06/12/08 6772 10590 AMERICAN MESSAGING JUNE PAGER SERVICE 35.95 06/08 06/12/08 6773 10595 AMERICINN OF ANNANDALE LODGING-CORLEW 158.28 06/08 06/12/08 6774 10750 ANOKA COUNTY APRIL INTERNET 632.58 ACCESS MAY INTERNET ACCESS 631.93 Total 6774 1,264.51 06/08 06/12/08 6775 11565 ASPEN MILLS UNFORMS 111.45 06/08 06/12/08 6776 20162 BEST WESTERN KELLY INN LODGING NELSON 5-13 95.14 06/08 06/12/08 6777 20350 RUSSELL A BLANCK TRAVEL FBI NA 261.00 TRAINING 06/08 06/12/08 6778 30055 CSK AUTO, INC VEH BATTERY/LITE 111.51 06/08 06/12/08 6779 30063 CP TELCOM PHONES/LONG DIST 342.71 06/08 06/12/08 6780 30480 CENTENNIAL UTILITIES APRIL USAGE 572.24 06/08 06/12/08 6781 31137 CONNEXUS ENERGY APRIL ELECTRIC 1,347.24 06/08 06/12/08 6782 31240 JASON CORLEW TOBACCO COMPLIANCE 15.00 CK 06/08 06/12/08 6783 40200 DELL MARKETING L.P. PRINT CARTRIDGES 502.58 PRINTER 101.24 Total 6783 603.82 06/08 06/12/08 6784 40300 DELTA DENTAL JULY DENTAL INS/GATES 778.80 ADJ 06/08 06/12/08 6785 40430 DISPLAY SALES CO FLAGS 59.64 06/08 06/12/08 6786 40700 DON'S CIRCLE SERVICE, INC VEHICLE MTC/REPAIRS 1,138.31 06/08 06/12/08 6787 70310 GALES AUTO BODY, INC 1999 CHRYSLER REPAIR 749.60 06/08 06/12/08 6788 70500 GRAFIX SHOPPE, INC 2 CROWN VICS CUSTOM 750.00 KITS 06/08 06/12/08 6789 90026 IMAGE PRINTING & GRAPHICS, INC TRAFFIC/PA YFOLL 104.30 FORMS 06/08 06/12/08 6790 100060 JEFF'S BOBBY & STEVES FORFEITURE EXPENSE 17.67 95 PONTIAC 06/08 06/12/08 6791 110204 KNOWLAN'S SUPER MARKETS SUPPLY 12.56 06/08 06/12/08 6792 120177 MICHELLE LAKSO CERT SUPPLIES 126.78 06/08 06/12/08 6793 120331 LEAGUE OF MN CITIES INS TRUST 2007 WKCOMP ADJ 206.00 6 MOS PROP/LIABILITY 8,628.00 Total 6793 8,834.00 06/08 06/12/08 6794 130205 MALLOY,MONT AGUE,KARNOWSKI, FINAL BILLING 2007 4,117.00 AUDIT 06/08 06/12/08 6795 130500 MIDWAY FORD INC 2007 CROWN VIC REPAIR 263.51 06/08 06/12/08 6796 130725 MPLS COMMUNITY & TECH COLLEG DATA PRACTICES 250.00 SEMINAR SB/KH 06/08 06/12/08 6797 130793 MN CRIME PREVENTION ASSOC. 2008 MCPA MEMBERSHIP 60.00 06/08 06/12/08 6798 140100 NATIONAL IMPRINT CORPORATION JR POLICE BADGES 141.34 06/08 06/12/08 6799 140370 NEXTEL COMMUNICATIONS MAY CELL PHONES 273.52 06/08 06/12/08 6800 150100 OFFICE MAX CONTRACT, INC PRINTER 224.84 CARTRIDGES/CLIPS/MISC ST APLES/CLlPS/FOLDER~ 188.17 M = Manual Check, V = Void Check 18 CENTENNIAL LAKES POLICE DEPT Check Register POLICE GL Page: 2 GL Posting Period(s): 06/08 - 06/08 Jun 12. 2008 02:50pm Check Issue Date(s): 06/01/2008 - 06/12/2008 Per Date Check No Vendor No Payee Invoice Description Inv Amount Total 6800 413.01 06/08 06/12/08 6801 160517 POSTNET POSTAGE 36.68 06/08 06/12/08 6802 160560 FRED PRYOR SEMINARS SEMIINARlCL 78.00 06/08 06/12/08 6803 170180 QWEST PHONE 417.47 06/08 06/12/08 6804 190315 SCOTT COUNTY TREASURER CONFERENCE/CARLSON 100.00 06/08 06/12/08 6805 190390 SHRED RIGHT, INC SHREDDING 60.34 06/08 06/12/08 6806 190625 SPEEDWAY SUPERAMERICA LLC MAY FUEL 5,899.00 06/08 06/12/08 6807 200005 VOID - TACTICAL SOLUTIONS MONITOR SYSTEMS .00 SPEED TRAILER 06/08 06/12/08 6808 200043 TELECIDE PRODUCTIONS, INC COMPUTER MTC 45.00 06/08 06/12/08 6809 210110 UNIFORMS UNLIMITED, INC UNIFORMS RN/EK 361.31 06/08 06/12/08 6810 210120 UN I-SELECT USA RADIATOR CAP 7.55 06/08 06/12/08 6811 210127 UNICARE LIFE & HEALTH INS. CO. JULY LIFE/DISABILITY 165.00 INS 06/08 06/12/08 6812 210300 UPPER MIDWEST COMM POLICING CONSUL TING 3,900.00 06/08 06/12/08 6813 20110 BCA - BTS INTOX 5000 RECERT 50.00 06/08 06/12/08 6814 110190 EMILY KIRCHNER DOG CRATE 41.59 06/08 06/12/08 6815 160563 PUBLIC SAFETY EQUIPMENT LLC MONITOR SYSTEMS 4,792.50 SPEED TRAILER Totals: 38,948.33 M = Manual Check, V = Void Check 19 CENTENNIAL LAKES POLICE DEPT Check Register POLICE GL Page: 1 GL Posting Period(s): 06/08 - 06/08 Jun 12, 2008 02:50pm Check Issue Date(s): 06/01/2008 - 06/12/2008 Per Date Check No Vendor No Payee Invoice Description Inv Amount 06/08 06/11/08 6073 31240 VOID - JASON CORLEW TOBACCO COMPLIANCE 15.00 - M CK 06/08 06/12/08 6772 10590 AMERICAN MESSAGING JUNE PAGER SERVICE 35.95 06/08 06/12/08 6773 10595 AMERICINN OF ANNANDALE LODGING-CORLEW 158.28 06/08 06/12/08 6774 10750 ANOKA COUNTY APRIL INTERNET 632.58 ACCESS MAY INTERNET ACCESS 631.93 Total 6774 1,264.51 06/08 06/12/08 6775 11565 ASPEN MILLS UNFORMS 111.45 06/08 06/12/08 6776 20162 BEST WESTERN KELL Y INN LODGING NELSON 5-13 95.14 06/08 06/12/08 6777 20350 RUSSELL A BLANCK TRAVEL FBI NA 261.00 TRAINING 06/08 06/12/08 6778 30055 CSK AUTO, INC VEH BATTERY/LITE 111.51 06/08 06/12/08 6779 30063 CP TEL COM PHONES/LONG DIST 342.71 06/08 06/12/08 6780 30480 CENTENNIAL UTILITIES APRIL USAGE 572.24 06/08 06/12/08 6781 31137 CONNEXUS ENERGY APRIL ELECTRIC 1,347.24 06/08 06/12/08 6782 31240 JASON CORLEW TOBACCO COMPLIANCE 15.00 CK 06/08 06/12/08 6783 40200 DELL MARKETING L.P. PRINT CARTRIDGES 502.58 PRINTER 101.24 Total 6783 603.82 06/08 06/12/08 6784 40300 DELTA DENTAL JULY DENTAL INS/GATES 778.80 ADJ 06/08 06/12/08 6785 40430 DISPLAY SALES CO FLAGS 59.64 06/08 06/12/08 6786 40700 DON'S CIRCLE SERVICE, INC VEHICLE MTC/REPAIRS 1,138.31 06/08 06/12/08 6787 70310 GALES AUTO BODY, INC 1999 CHRYSLER REPAIR 749.60 06/08 06/12/08 6788 70500 GRAFIX SHOPPE, INC 2 CROWN VICS CUSTOM 750.00 KITS 06/08 06/12/08 6789 90026 IMAGE PRINTING & GRAPHICS, INC TRAFFIC/PA YFOLL 104.30 FORMS 06/08 06/12/08 6790 100060 JEFF'S BOBBY & STEVES FORFEITURE EXPENSE 17.67 95 PONTIAC 06/08 06/12/08 6791 110204 KNOWLAN'S SUPER MARKETS SUPPLY 12.56 06/08 06/12/08 6792 120177 MICHELLE LAKSO CERT SUPPLIES 126.78 06/08 06/12/08 6793 120331 LEAGUE OF MN CITIES INS TRUST 2007 WKCOMP ADJ 206.00 6 MOS PROP/LIABILITY 8,628.00 Total 6793 8,834.00 06/08 06/12/08 6794 130205 MALLOY ,MONT AGUE,KARNOWSKI, FINAL BILLING 2007 4,117.00 AUDIT 06/08 06/12/08 6795 130500 MIDWAY FORD INC 2007 CROWN VIC REPAIR 263.51 06/08 06/12/08 6796 130725 MPLS COMMUNITY & TECH COLLEG DATA PRACTICES 250.00 SEMINAR SB/KH 06/08 06/12/08 6797 130793 MN CRIME PREVENTION ASSOC. 2008 MCPA MEMBERSHIP 60.00 06/08 06/12/08 6798 140100 NATIONAL IMPRINT CORPORATION JR POLICE BADGES 141.34 06/08 06/12/08 6799 140370 NEXTEL COMMUNICATIONS MAY CELL PHONES 273.52 06/08 06/12/08 6800 150100 OFFICE MAX CONTRACT, INC PRINTER 224.84 CARTRIDGES/CLlPS/MISC ST APLES/CLlPS/FOLDER~ 188.17 M = Manual Check, V = Void Check 20 CENTENNIAL LAKES POLICE DEPT Check Register POLICE GL Page: 2 GL Posting Period(s): 06/08 - 06/08 Jun 12, 2008 02:50pm Check Issue Date(s): 06/01/2008 - 06/12/2008 Per Date Check No Vendor No Payee Invoice Description Inv Amount Total 6800 413.01 06/08 06/12/08 6801 160517 POSTNET POSTAGE 36.68 06/08 06/12/08 6802 160560 FRED PRYOR SEMINARS SEMIINARlCL 78.00 06/08 06/12/08 6803 170180 QWEST PHONE 417.47 06/08 06/12/08 6804 190315 SCOTT COUNTY TREASURER CONFERENCE/CARLSON 100.00 06/08 06/12/08 6805 190390 SHRED RIGHT, INC SHREDDING 60.34 06/08 06/12/08 6806 190625 SPEEDWAY SUPERAMERICA LLC MAY FUEL 5,899.00 06/08 06/12/08 6807 200005 VOID - TACTICAL SOLUTIONS MONITOR SYSTEMS .00 SPEED TRAILER 06/08 06/12/08 6808 200043 TELECIDE PRODUCTIONS, INC COMPUTER MTC 45.00 06/08 06/12/08 6809 210110 UNIFORMS UNLIMITED, INC UNIFORMS RN/EK 361.31 06/08 06/12/08 6810 210120 UNI-SELECT USA RADIATOR CAP 7.55 06/08 06/12/08 6811 210127 UNICARE LIFE & HEALTH INS. CO. JULY LIFE/DISABILITY 165.00 INS 06/08 06/12/08 6812 210300 UPPER MIDWEST COMM POLICING CONSULTING 3,900.00 06/08 06/12/08 6813 20110 BCA - BTS INTOX 5000 RECERT 50.00 06/08 06/12/08 6814 110190 EMILY KIRCHNER DOG CRATE 41.59 06/08 06/12/08 6815 160563 PUBLIC SAFETY EQUIPMENT LLC MONITOR SYSTEMS 4,792.50 SPEED TRAILER Totals: 38,948.33 M = Manual Check, V = Void Check 21 CENTENNIAL FIRE DISTRICT Check Register FIRE GL Page: 1 GL Posting Period(s): 06/08 - 06/08 Jun 16, 2008 04:22pm Check Issue Date(s): 06/03/2008 - 06/16/2008 Per Date Check No Vendor No Payee Invoice Description Inv Amount 06/08 06/16/08 3297 10500 AMERICAN TEST CENTER, INC FIRE TRUCK ANNUAL 1,045.00 INSP 06/08 06/16/08 3298 20120 BATTERIES PLUS BATTERIES 55.21 06/08 06/16/08 3299 20130 TARA BAUER EMT TEST 70.00 06/08 06/16/08 3300 20390 BROADWAY AWARDS, INC SAFETY CAMP MN 690.12 MEDALS 06/08 06/16/08 3301 30465 CENTENNIAL FIREFIGHTERS RELIEf 1ST/2ND QTR PENSION 12,500.00 CONTRIBUTION 06/08 06/16/08 3302 30485 CENTER MART MAY FUEL 166.65 06/08 06/16/08 3303 31008 COM CAST INTERNET CENTERVILLE 189.00 STATION 06/08 06/16/08 3304 50120 EMERGENCY APPARATUS MAINT, I~ ENGINE 31 MTC 519.51 06/08 06/16/08 3305 60650 FRATTALLONE'S HARDWARE STORI PHONE LINE 60.64 06/08 06/16/08 3306 80900 DAVE HULTS EMT EXAM FEE 70.00 06/08 06/16/08 3307 90080 ICC MEMBERSHIP 100.00 06/08 06/16/08 3308 110550 BRENT KOSKELA FIREFIGHTER 2 EXAM 60.00 FEE 06/08 06/16/08 3309 Information Only Check V 06/08 06/16/08 3310 120450 CITY OF L1NO LAKES MAY REIMBURSEMENTS 37,185.82 06/08 06/16/08 3311 120490 LOFFLER COMPANIES, INC COPIER MTC CONTRACT 206.73 06/08 06/16/08 3312 130205 MMKR, INC FINAL 2007 AUDIT 4,636.00 BILLING 06/08 06/16/08 3313 130348 MCLEOD USA PHONES 389.73 06/08 06/16/08 3314 130826 MN DEPT OF HEALTH SAFETY CAMP 2008 35.00 HOSPITALITY FEE 06/08 06/16/08 3315 220200 VERIZON WIRELESS CELL PHONES 135.99 06/08 06/16/08 3316 240100 XCELENERGY STATION 2 ELECTRIC 476.15 06/08 06/16/08 3317 999910 BARBARA BENESCH SAFETY CAMP 15.00 CANCELLATION REFUND Totals: 58,606.55 M = Manual Check, V = Void Check 22 CENTENNIAL LAKES POLICE DEPARTMENT 2007 ANNUAL REPORT T ABLE OF CONTENTS 2007 ANNUAL REPORT Mission Statement 2008 2 Command Structure 6 City Attorneys 8 ~t . r ~~,t~~l:- 11t~~ ~-,~~~'~ ,~~:t~ ~r~~t~ t::~^~it:'l: ~~,\j';,:~; ~4~~%~,r:k~~~~~{~:'$~~~ f I to ~ ~ \W ~ r ,J1 A " ~ \ ~ l~,: ~J~; i%' of!- A ..~ ..~ ~.J,.} ,,~ t *~r:t4:~,?~..., :<{",~: ~ 1,' W:-~~ .,.. ,'" ~ ~!, '," J t "" ." ~, , " ~'" , _ ~?"l't\, ""1: ~;,;. ""':'\~ '" Activity and Incident Report tk'$;h '''''~:I!t,: "'~ i''''~l, ~\ N(~~,,'~ "f', '" . ". ,.:"1'"~t,f.~:t:.~;~'f,_ ,). . " 'tf ~,;~ $ t '" ~ ,. J .,. ~. '\" [,,, 4""'" n"- ~t '\o;~Jl~\.'\ ~"!~~ ' " ~~ \i~ 'j:", i ~ '" ~ ) "- ( J,:t '; ; , l~, , ' ~ .. . ~ ... ~ ~~~~~~"'". . "Jffl ~, Alcohol Detection Devices Community Oriented Policing Drug Abuse Resistance Education (D.A.R.E.) 20 ..>-~ -:r;'::,,:, .' ,. Fleet 22 New Department Personnel .~~~;. ;.:\~.~~:.~~. '_""'~V';"""""_""")_""""""'_~'-"":;("",!.,_.,....._...,.._...,...,.."..<.._,.,_....~. 27 .~ 30 31 32 Investigations Predatory Offender Registry Safe and Sober Speed Enforcement and Radar Survey Results Training Use of Force Website 33 34 3S 38 40 42 M ISSION STATEMENT 2007 The Centennial Lakes Police Department is committed to excellence, fairness and compassion in providing professional police services in accordance with the law, reflective of the priorities and shared values of the communities served. PRINCIPLES ~ Our highest priority is the protection of life and property with respect for constitutional rights. ~ We emphasize prevention and safety by providing education and information to our communities. ~ We utilize training, technology and innovation to achieve excellence in Community Oriented Policing. ~ We protect the rights and dignity of citizens by conducting community contacts with courtesy and professionalism. ~ 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 our community. 1 MISSION STATEMENT Adopted April 14, 2008 We are committed to working uin partnership" with the citizens of our communities to understand and anticipate their policing needs, enforce laws, as well as, develop and implement proactive solutions to community problems that will improve the quality of life for the cities we serve. 2 I M I ESSAGE FROM THE CHIEF Chief Robel"t Makela Vision of Community Policing Within the Centennial Lakes Police Department Our Governing Board and Operations Committee have retained the services of the Upper Midwest Community Policing Institute to assist the Department in moving toward a more participative, problem solving policing that has some accountability. Consistent with that direction, it is essential to the success 0 f this undertaking that I establish my vision for this initiative and define the meaning and components of community oriented policing so that we begin with a common language. I further will provide some examples of successful community policing initiatives to clarify expectations. Prior to the implementation phase of the work the Upper Midwest Community Policing Institute will do with the Police Department, they facilitated a planning workshop with members of the Governing Board, Operations Committee and Police Management. At the conclusion ofthe workshop, the Board agreed on the following performance goals for the police department for the year 2008. · Broaden the scope of the police function by placing equal emphasis on crime prevention, crime control, traffic enforcement, quality oflife and service. · Develop and implement a formal system where the police serve as a catalyst for the identification and resolution of problems within the community using real time data to develop, modify and/or eliminate problem areas. · Increase the number of officer-initiated collaborative problem solving solutions within each officer's assigned geographic area. · Institute a traffic enforcement program which addresses the public safety needs and expectations of the community based on data identifying locations ofpersonal injury crashes, violations contributing to motor vehicle and/or pedestrian crashes, citizen complaints and general crime patterns. · Provide comprehensive and timely crime and activity analysis to the Governing Board and Operations Committee. There is no commonly accepted definition of community policing and there has been an historic tendency within our profession to label anything and everything as "community policing". It is my belief that in order to serve our communities the police must have a department-wide commitment to providing full service, personalized and decentalized, with proactive partnerships. Members of the community must feel empowered to work in meaningful partnerships with the police in order to solve crime, fear of crime, disorder or decay and to improve the quality of life within their community. 3 For us to move forward towards an accountable, participative and problem solving style of policing, it will mean that police must broaden the nature and number of police functions. We will work with the community and other governmental and non- governmental agencies in an effort to increase the overall quality of life in all areas served by the Centennial Lakes Police Department. Our goal within the department will be to practice a style of policing in which the community will fully embrace the police as servants. To help implement and effectively communicate these principles, it is necessary to establish a common understanding of the terms and initiatives as they apply to the Centennial Lakes Police Department. Philosophy Community Policing as a philosophy requires a department-wide commitment to "zero tolerance" of employee insensitivity, incivility or discourtesy and demands a whole department attitude which will recognize and accept the valued role the community has in influencing the philosophy, management and delivery of police services. To implement our department philosophy, we will explore our current mission statement and consult with our partners in the community about the best ways to serve our community. Full Service The department will provide full service policing which is open, mission driven, focused on proactive assistance to the community and has the department as a central information collaborator for the community. Ifwe can't complete a task, we will act as a referral to our citizens and facilitate a problem solving solution. This style of policing will move us towards a broader function that incorporates handling the fear of crime, maintaining order and quality of life within the community as important elements in community policing. Personalized Officers and members of the community should know each other, and if possible, on a fIrst name basis. Community policing recognizes neighborhood differences and this dictates the police to follow and understand individual areas they serve. Serious crime must be enforced uniformly, but police must also be cognizant of neighborhood variations when policing minor infractions. The department has assigned fIxed geographical responsibility to Officers and Sergeants for better communication, understanding and accountability to the citizens in their area. Decentralized Decentralization can mean many things, but for us in this transition it will mean that the police department will embrace and adjust to the uniqueness of each city within the Police Joint Powers Agreement. The Centennial Lakes Police Department has assigned a Sergeant and a Community Service Officer that responds to city council meetings and city administration for personal community needs. We will continue to decentralize with foot and bicycle patrol activities and maintain a sub-station in Centerville for community ownership. 4 Empowerment It means that people in the most vulnerable populations, who have least benefited from police service, will now feel protected and enfranchised. Community policing means identifying and prioritizing needs of special populations and gathering their "input" so they feel benefited by the relationship. Crime is a product of social conditions and cannot be eliminated through police actions alone. Community engagement must take place with the police serving as the catalyst; encouraging and motivating citizens to become involved in the issues that affect their quality oflife. Proactive Partnerships To be proactive, the police department must shift away from the traditional "bean counting" mentality and adopt qualitative rather than just quantitative standards to determine effectiveness. Community partnerships playa significant role in this area with citizens helping the department establish creative yet sensible ways to measure police effectiveness and impact. Under community policing, coordination with other government agencies in developing comprehensive and effective solutions is essential. Encouraging citizen involvement in Neighborhood Watch, youth education and cleanup programs can increase social cohesion and has been found to result in decreased fear of cnme. Problem Solvine: Criminal justice recognizes only a handful of social problems that the police can reasonably do something about. These are crime itself, the fear of crime, neighborhood disorder, decay and quality of life. Community policing is not "soft" on crime and by no means does it intend to circumvent statutory law or mandatory "get tough" initiatives on assault, guns, drugs or juveniles. Community policing requires that the police see arrest as one tool among many as they work with the community to solve problems. If a person thinks that their children are growing up in a valuable, growing community and would live here all over again, given the chance, this is the goal of creating long term perceptions of safety, ownership and quality oflife. I look forward to working with each of you to expand the police department as a leader for all your public safety needs. It is the intent of this memorandum to serve as a roadmap to be more participative, problem solving and accountable to all of your needs as a person in our communities. Please call on me or anyone in the police department for any need you have. I personally believe that your involvement with the police department is necessary for community safety and problem solving. 5 rIJ. es r:.....~(/) l:""""'~u.:lZ u~zo ~~P::b ~~u.:l6 ~E-<....:l>< ~ffi~~ ~UU~ ~ ~...; u ~ ~~ ~~ ~ ~ o t ~ ~ 5 :( e9 ~ ~ ==.~ < U = u ~ ~ rn ~ ~ ~ ~ ~ "" ~ ~ J.ll ~ ~ u .... ~ tt ~ < ~ 0 U 0 E-< J.ll ; = E-< u - ~ C ~ Z ~ ~ ~ 00 u ; ~ ~ 0 0 ~ ~ c 5 ~ u ~ u ~ j:l,. 0 ~ 0 ~ p ERSONNEL ice Manager in y Lewis 2007 GOVERNING BOARD MEMBERS Centerville: Mary Capra Circle Pines: Dave Bartholomay Lexington: Don Valenta Tom Lee Dave Kelso Barb Mahr CENTENNIAL LAKES POLICE DEPARTMENT STAFF NAME Robert Makela Ronald Nelson Cindy Lewis Jon Krueger Nancy Noren Russell Blanck Patrick Aldrich Benjamin Stepan Aaron Dixon Jason Corlew Scott Arntzen Kristofer Carlson Daniel Gates Matthew Langreck Andrew Dixon Susan Bakke William Jacobson Aron Sandmann Britni Austin Emily Kirchner Daniel Crimmins Jeffrey Tarnowski Matthew Giese Katherine Honkomp Angela Kruyer "----- TITLE Chief Administrative Sergeant Administrative Assistant Patrol Officer Records Technician Admin. Sergeant/Investigator Sergeant Sergeant Part Time Custodian Patrol Officer Patrol Officer Patrol Officer Patrol Officer Patrol Officer Patrol Officer Part Time Data Entry Clerk Patrol Officer Patrol Officer PT Community Service Officer PT Community Service Officer PT Community Service Officer Patrol Officer Patrol Officer Part Time Data Entry Clerk Patrol Officer 7 SERVING FROM 06-24-85 01-02-89 11-27-90 06-15-97 03-30-98 09-01-98 03-17-99 06-28-00 05-24-02 08-05-02 09- 23 -02 04-19-04 10-04-04 11-01-04 01-03-05 02-22-05 09-12-05 10-11-05 08-10-05 05-16-06 05-24-06 07-31-06 10-16-06 04-18-07 06-25-07 C !TY ATTORNEYS Kurt Glaser 510 First Avenue North Butler North Building Suite 610 Minneapolis, MN 55403 Phone: 612-333-6513 8 Tony Spector 510 First Avenue North Suite 610 Minneapolis, MN 55403 Phone: 612-339-6500 F Chief Robert Makela 2007 OPERATING COSTS BY CITY 1 ~i-;~,"/'~c~;'", .:.'f ~1;'"fW;"!i.~~_' . 4 . . ~'(;.1':Aih:'",i;..0.,~~,;"?;f;t';;:i,.:"~;" ~$648,7 4 Circle Pines $802,459 _.sr.''if~1$R\'1)jf;iJl.,;;~;."..;t''f~:~.'~.'. .~ "'.".'.'.'~'$553973 ...... . . . ......~.~~~\~~~~,~~~' , 2007 REVENUES BY CITY 2 State Aid for Police till&llI\~~)~.:.::j~t'~\~f~~;'f~,,~,:::?rl~~lt Fine Revenue ,,~""'~...\<O ~".f :f...":~ ~ ,'< ~ ~,,~. "); "\("'~ ~ "';- ,'" ?iiiJ ._1'~_-J..~"th.f,~i~~t:,.;; ^ ';;~--"A' lJ.!iJ;<'I7J..;~, ~"~ !- ,,:t. ~ ' . 7'{"'"" -':'Jff""", ,,~~ ~ '" . Circle Pines 41,288 33,474 ~. ..' .,"~.IC.,,"'. ,.,',.\ i)..~~_.it~~~~~i~l\;',"~i~~;;. ,_ -,'" ~ ,,"'~' _ " ".~~_:.,,,,_,,,,,;\:,_,.C~\,)fi!;f~~m,, tt'W'~'~~*.~;"';~i;"",'~~,::;",'_i'''''''''''__ I As determined by the IACP Funding Formula and Tri-City Agreement 2 Computed per Tri-City Agreement 9 ;:,,-\~;.?; """"":',..<.--' .J(tfJ:,':<~:: Total $74,762 ~z.~e- .~"~ I A !CTIVITY AND INCIDENT REPOR;;2~:nangerandYLeWiS CLASS 1 CRIMES 2005 2006 2007 Homicide 0 0 0 Forcible Rape 2 2 1 Robbery 2 0 0 Aggravated Assault 1 15 11 Burglary 30 37 20 Larceny/Theft 138 155 150 Motor Vehicle Theft 12 8 7 Arson 1 0 0 Total 239 217 189 CLASS II CRIMES Other Assault 51 43 38 Disorderly Conduct 11 11 22 DUI 154 166 192 Embezzlement 0 0 0 Family/Children 0 0 3 Forgery/Counterfeiting 12 2 3 Fraud 2 7 3 Gambling 0 0 0 Liquor Laws 24 41 58 Narcotics 61 48 65 Prostitution 0 0 0 Sex Offenses 8 12 8 Stolen Property 4 3 7 Vandalism 165 102 120 Weapons 2 12 6 Other Class II Offenses 294 360 281 Total 788 807 806 10 ACTIVITY AND INCIDENT REPORT Continued Traffic Offenses 2005 2006 2007 Accidents 106 121 129 Bicycle Violations 10 7 35 CarelesslReckless Driving 11 31 25 DUl and Refuse to Test - Felony 3 3 3 DUI and Refuse to Test - Gross Misd 79 69 54 DUI and Refuse to Test - Misdemeanor 72 92 135 Fail to Yield 18 15 17 No Proof ofInsurancelNo Insurance 365 300 254 DL Violation (DAR/DAC/DAS) 232 213 189 Open Bottle 16 18 8 Other DL Violations 103 86 107 Other Traffic Violations 316 291 257 Parking Violations 661 718 199 RegistrationlTabs/Plate Violation 240 175 122 Seat Belt Violation 338 554 537 Speed 688 556 624 Stop Arm Violation (School Bus) 3 1 1 Stop Sign/Stop Light 233 187 171 Warning - Equipment Violation 1630 1835 1881 Warning - Parking Violation 199 41 48 Warning - Traffic Violation 2753 3347 3715 Juvenile Offenses 2005 2006 2007 Juvenile Alcohol 16 27 31 Juvenile Controlled Substance 8 11 4 Juvenile Tobacco 10 24 21 Juvenile Curfew 17 46 21 Juvenile Runaway 8 9 8 11 ACTIVITY AND INCIDENT REPORT Continued Miscellaneous Incidents 2005 2006 2007 Alarms 289 216 258 Animal Bites 7 14 6 Animal Complaints/Animal Impounds 339 316 328 Assist to Other Department/Agencies 604 684 705 Deaths/Suicides/Suicide Attempts 15 6 25 Domestics 258 211 198 Follow Up Cases 619 477 474 Found Bicycle 47 58 55 Found Person! Animal/Property 70 71 69 House Checks/Extra Patrol 164 133 174 Lock -Outs 245 203 206 Lost Person! Animal/Property 74 67 79 Medicals 290 353 392 Noise Complaints 137 167 199 Open Door/Window 540 325 252 Ordinance Violations 309 335 610 Permit to Purchase/Carry Firearm 55 64 50 Public Assists 1163 1031 483 Suspicious PersonIV ehicle/Other 1233 1041 1389 Warrant Arrest! Attempt 132 89 121 Other Miscellaneous Incidents 1467 1438 2175 ACTIVITYIINCIDENTS PER CITY 2005 2006 2007 CENTERVILLE 5155 5491 4871 CIRCLE PINES 5866 5521 5925 LEXINGTON 5199 5133 5970 OUT OF AREA 791 763 786 TOTALS 17,011 16,908 17,552 12 A LCOHOL AND TOBACCO COMPLIANCE Officers Langreck and Corlew conducted one alcohol compliance check this year of all licensed alcohol establishments in Centerville, Circle Pines and Lexington. All the businesses passed the compliance check by checking identification prior to the sale of alcohol. Officers have observed an increased number of alcohol providers checking identification over the last few years. The department commends the businesses who take the extra step to insure the safety of the juveniles in our communities. This year the department worked with the Department of Public Safety, Alcohol and Gambling Division. The department received grant money to fund the compliance checks, which are completed on an annual basis. The department also hosted an "Alcohol Server Training" which was taught by an Alcohol and Gambling agent. The Centennial Lakes Police Department will continue to host the Alcohol Server Training on a semi-annual basis as long as the Department of Public Safety offers the training. Officers also completed two tobacco compliance checks of all licensed tobacco establishments in the three cities. Although an increase in identification checks prior to the sale of tobacco has also been noticed, four businesses failed the tobacco compliance checks in 2007. We would like to thank all establishments for continuing to keep the youth of Centerville, Circle Pines and Lexington safe and healthy by not selling alcohol or tobacco to anyone under the legal age limit. 13 A LCOHOL DETECTION DEVICES The Centennial Lakes Police Department uses two types of alcohol detection devices; the handheld preliminary breath test (PBT) meter and the Intoxilyzer 5000. The department uses two types ofPBT's; the Alco-Sensor IV and the Life-Loc. These handheld devices utilize plastic mouthpieces and are used to detect blood alcohol content (BAC) from human breath samples. Both devices have digital readouts. These devices are often utilized by officers to supplement field sobriety testing and to detect underage alcohol consumption. At the end of 2007, the department had six Alco- Sensors and one Life- Loc. PBT's are calibrated and tested on a monthly basis. The Intoxilyzer 5000 is used for the detection of blood alcohol content for evidentiary purposes in traffic-related cases such as DWI's. The Intoxilyzer tests two breath samples to calculate blood alocohol content (BAC). Officers must attend a course at the Bureau of Criminal Apprehension to become Intoxilyzer operators. The Intoxilyzer solution is changed on a monthly basis and is maintained by officers with help from the BCA. 14 B lKE PATROL Officer JOn Krueger During 2007 the Centennial Lakes Police Department was able to re-establish our Bike Patrol Division and it served as an excellent Community Policing tool. The prograrn was launched in June with officers and staff receiving some hands-on training. In July, we commenced with mainly nighttime bike patrolling in community parks and neighborhoods. Officers logged over fifty hours on the bikes and made thirty-five police contacts while on bike patrol. There were also three arrests made for curfew violations, three underage drinking violations and numerous warnings issued for after-hour park violations. Our department currently has two patrol bikes in its fleet. Officers, Community Service Officers and Reserve Officers are trained for bike patrol. In 2008, Centennial Lakes Police Department plans to use bike patrol more often and also throughout different times of the day and night. 15 c OMMUNITY ORIENTED POLICING Community Oriented Policing or C.O.P. is a partnership created between the police, citizens and businesses designed to detect and deter crime. It was born out of the realization that without public assistance, a majority of crime fighting 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 approachable 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 revitalize the relationship and reopen lines of communication. The Centennial Lakes Police Department has a strong commitment to C.O.P. The cities of Circle Pines, Lexington and Centerville are divided into seven patrol areas. Each year two officers are assigned to one of these areas for the sole purpose of performing C.O.P. activities. These officers interact with community crime watch prevention groups, participate and assist in organizing special events, meetings and forums, and make a special effort to meet citizens and business owners to learn their particular needs. Community Oriented Policing Areas (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. Grids are specifically defmed areas that the department uses to gather statistics and track problem areas. The following table identifies each grid, its location, and the assigned officers. GRID LOCATION OFFICERS I 2 3 4 5 6 7 Circle Pines, North of Lake Drive Circle Pines, South of Lake Drive Lexington, North of Lake Drive Lexington, South of Lake Drive Centerville, North of Main Street Centerville, South of Main Street Lexington, Paul Revere Community Kruyer, Giese, Corlew Tamowsk~ Blanck Carlson, Jacobson Sandmann, Arntzen Dixon, Krueger Langreck, Aldrich Stepan, Gates Crime Watch Coordinator: Community Service Officer Britni Austin 16 The following are but a few of the C.O.P. projects our officers participated in this past year: . 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 traffic surveys . Tobacco and truancy enforcement . Safe and Sober patrol and related events . Distribution ofbaseball and football cards . Police Department tours . Crime Watch meetings . Anti-drug presentations In addition to vehicle patrol, officers utilized foot and bicycle patrol (when weather permitted) in areas where both serious as well 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 reflect changing 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 looks forward to additional C.O.P.-related successes in the future. If you have any suggestions to improve our Community Oriented Policing, please let us know. 17 c RIME PREVENTION Crime Prevention is a critical part of our community, It involves many aspects of Community Oriented Policing to benefit our cities. Neighborhood Crime Watch groups are a big part in assisting our officers with keeping our neighborhoods safe. National Nil!:ht Out National Night Out is held on the first Tuesday in August every year. This year our cities had a wonderful turnout in the extreme heat. Our officers visited numerous scheduled block parties in Centerville (6), Circle Pines (7), and Lexington (4). Total parties were up by two from last year. Residents were able to address officers about crime concerns and new events in the community. Goodie bags filled with pencils, sports cards, stickers and bicycle spoke reflectors were also handed out to children in an effort to promote safety and crime prevention. Our residents were also greeted by McGruffthe Crime Dog. Neil!:hborhood Crime Watch Neighborhood Crime Watch groups bring neighbors together in hopes of preventing crime in their communities. These organized groups watch out for one another. In order to stay active in the Crime Watch organization these groups must hold meetings twice a year. One of these meetings is an informational meeting usually held in the spring; the other is more of a social meeting held on National Night Out. Participants must also be involved in Operation Identification. Operation 10 is a system of marking valuable property with a specific number assigned by the police department. When property is recovered, officers can then trace it back to the owner and ensure a timely return of the property. Currently there are over twenty neighborhood crime watch groups in our jurisdiction. During 2007 more residents seemed interested in joining a Neighborhood Watch Group; however there has been some difficulty in finding block watch captains due to the hectic modem lifestyles. We are hoping to add many more of our residents to these Neighborhood Crime Watch groups in 2008. BicYcle Licenses The Centennial Lakes Police Department urges residents to license their bicycles. These licenses are issued at the police department at no cost to residents of Lexington, Circle Pines and CentervilIe. This makes the recognition of recovered bicycles easier for the department. Numerous bicycles were abandoned and recovered this past year without licenses. Bicycle licenses area part of crime prevention that should be enhanced. Officers and CSO' s have spent time showing safety equipment for bicycles and teaching proper hand signals, as well as, bicycle rules of the road. 18 Proiect ROCKET The Centennial Lakes Police Department has launched an innovative program for families who have children with special needs. Project ROCKET (Response Outline Created for Kids and Endangered Teens) was created by CSO Austin in an effort to better prepare law enforcement and public services when dealing with crisis situations involving children with special needs. Imperative personal information regarding the endangered and vulnerable child is entered into the computer system's hazard file. When a call from a residence comes into dispatch, the dispatcher is able to provide officers with a physical description, any medical diagnosis, an address guide to nearby properties with potential hazards, details how to best approach the child, how they respond to authority, and whether they are verbal or non-verbal. Parent or guardian information is also provided through the dispatch system. All information regarding Project ROCKET is kept on file with dispatch as well as the police department. Should information need to be updated, it can easily be changed by contacting CSO Austin. This program will help minimize certain challenges to law enforcement and make responding to calls more efficient. Community Emere:ency ResDonse Team (CERT) The Centennial Lakes Police Department is now looking for members of the community who want to be trained in responding to disaster situations in our communities. The CERT training program prepares citizens to help themselves, their families, and neighbors in the event of a disaster. Those trained in CERT will have skills to assist emergency responders in saving lives and protecting property. CERT volunteers help others until trained emergency personnel arrive. A Centerville resident and city council member, Michelle Lakso, is the program coordinator. The program is intended to start as early as March of2008. Home Security InsDection This program was developed to help deter crime and prevent theft. It includes inspection of a home's windows, doors, locks, outside lighting, and landscaping. The program incorporates the CEPTED model of crime prevention and promotes crime watch groups and Operation ID. Suggestions are made that will improve your home's security and discuss other ways to avoid becoming a victim 0 f crime. 19 D RUG ABUSE RESISTANCE EDUCATION D.A.R.E. Officer Daniel Gates The D.A.R.E. Program was restarted in 2007 after a hiatus in 2006. Officer Dan Gates was selected to become the new DARE Officer. Officer Gates taught DARE to the fifth graders at Golden Lake Elementary and Centerville Elementary. Topics covered included tobacco, alcohol, marijuana, methamphetamine, deceptive advertising, bullying, friendships, and responsible decision-making. The kids enjoyed the program and Officer Gates enjoyed teaching it. The program ended with a graduation ceremony at each school. During the ceremony, students who had written the winning essay from each class were invited to read their essays to the audience and they each received a special prIZe. DARE is once again being taught by Officer Gates in 2008 at the same schools. The support given to us by the Centennial School District and the elementary schools has been paramount to the program's success, and we thank them for their support. 20 F lREARMS In 2007 the firearms instructors continued to focus on a one-on-one training program developed at the end of 2004. The program emphasizes the dynamic nature of law enforcement-related shooting encounters, moving away from the traditional static firing position approach and focusing on shooting while moving. The movement emphasized includes engaging rapidly approaching threats in confined spaces such as small rooms and hallways in houses and apartments. The program is popular with the officers not only because of additional training time, but because ofthe individualized attention. The fIrearms instructors are also able to view officers' weapons handling skills and shooting abilities and provide focused training and commentary. This training was also "budget friendly" as it was only held on "open range" days - free 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-making focused interactive video live fire qualification shoot, 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 Summer shoot designed to enhance officers' skills with the department-issued squad rifle. 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 2007 the department also re-evaluated its long gun program and determined to replace its existing 9mm pistol-caliber squad rifles with .223 rifle-caliber AR-15 carbines. The AR-15's will permit officers greater ranges of engagement and advances in .223 ammunition technology make that round less likely to over penetrate that the 9mm in certain applications. Finally, those not familiar with weaponry may not know of the great shortage in both practice and duty ammunition for both rifles and handguns. Law enforcement is competing for ammunition in the global market with both the military and other nations who utilize the same raw materials that go into making ammunition. As a result, it is not uncommon to wait several months (and in the case of certain rifle ammunition in excess of a year) for ammunition orders to be filled. Not surprisingly, there has been a commensurate cost increase which has had a negative impact on the department's ammunition budget. Weare hopeful this situation will change and have budgeted for additional cost increases in the future. 21 L__ F LEET Officer Scott Arntzen For the year end of 2007, the Centennial Lakes Police Department owned seven marked squads, two marked CSO vehicles, one marked Reserve vehicle, and three unmarked vehicles. Throughout the year we purchased two Crown Victoria squads, which replaced two Dodge Intrepid squads. The two squads removed from the fleet were #204 and #304. The following summary gives an overall record of the maintenance performed for the year 2007 and also gives an explanation for each vehicle. The overall services for the fleet consists of 67 oil changes, 50 tires, 12 front brake jobs, 8 rear brake jobs, and 5 batteries. There were four squads involved in minor property damage accidents, two of them being caused by deer. There were also several squads that had cooling and fuel related issues, much of which was covered by warranty. Squad #105 - 2005 Ford Crown Victoria: This fully marked squad with a clean top is used in daily patrol and is designated to the Sergeants. The vehicle was driven approximately 20,000 miles. The vehicle had a total of 6 oil changes, 6 tires, 1 front brake job, 1 rear brake job, and 1 battery. The vehicle also had fuel pump problems which was covered by warranty. Squad #205 - 2005 Ford Crown Victoria: This vehicle was driven approximately 30,000 miles. The vehicle had a total of9 oil changes, 8 tires, 1 front brake job, and 1 rear brake job. This vehicle was also involved in a property damage accident involving a deer causing minor damage to the driver's side front end. Squad #106 - 2006 Crown Victoria: This is a fully marked squad used in daily patrol. The vehicle was driven approximately 36,000 miles. The vehicle ahd a total of 12 oil changes, 12 tires, 2 front brake jobs, and 2 rear brake jobs. This vehicle also had cooling problems, resulting in the cooling fan being replaced, which was covered under warranty. Squad #206 - 2006 Crown Victoria: This is a fully marked squad used in daily patrol. The vehicle was driven 33,000 miles. The vehicle had a total of 10 oil changes, 8 tires, 2 front brake jobs, and 1 rear brake job. This vehicle also had cooling problems, resulting in the installation of a cooling fan covered under warranty. This vehicle was also involved in a property damage accident, resulting in minor damage to the front end. Squad #107 - 2007 Ford Crown Victoria: This fully marked squad was added to our fleet in May and is used for daily patrol. The vehicle was driven 25,000 miles. The vehicle had a total of7 oil changes, 4 tires, and 1 front brake job. 22 Squad # 207 - 2007 Ford Crown Victoria: This fully marked squad was added to our fleet in April and is used for daily patrol. The vehicle was driven approximately 25,000 miles. The vehicle had a total of 6 oil changes, 4 tires, and 1 front brake job. The vehicle was involved in two property damage accidents. One of the accidents was caused by a deer, causing minor damage underneath the vehicle and the other involving a fixed object, causing minor damage to the rear end of the vehicle. Squad #504 - 2004 Chevy Impala: Fully marked squad used in daily patrol. The vehicle was driven approximately 17,000 miles. The vehicle had a total of 5 oil changes, 4 tires, 1 front brake job and 1 battery. The only minor repair was installing a new water pump. #306 - 2006 Ford F150: This vehicle is fully marked and is primarily used by the Community Service Officers. The vehicle is also used for patrol in inclement weather. The vehicle was driven approximately 21,000 miles. The vehicle had a total of6 oil changes, 4 tires, 1 front brake job, and 1 rear brake job. This vehicle was damaged in the early fall by a hail storm and was repaired by a body shop. #100 - 2000 Chevy K1500: This vehicle is fully marked and used primarily by the Community Service Officers. The vehicle is also used for patrol during inclement weather. The vehicle was driven 8,000 miles. The vehicle had a total of 3 oil changes, 1 front brake job, and 1 rear brake job. This vehicle also received minor hail damage, which was not repaired. The vehicle was also involved in a property damage accident causing minor damage to the front and rear ends. #101 - 2001 Mitsubishi Mirage This vehicle is unmarked and is used for special activities; including transportation to training events and court, and undercover operations. In 2008 the vehicle will be designated to the investigator. The vehicle was driven approximately 2000 miles and had 1 battery replaced. #104 - 2004 Dodge Intrepid This fully marked vehicle is designated as the Reserve vehicle. The vehicle is marked as a Reserve vehicle and is used for special activities. The vehicle has been driven approximately 2,000 miles and had 1 front brake job and 1 rear brake job. CLll - 1999 Chrysler 300M: This unmarked vehicle has been assigned to the Captain and is also used for special activities. The vehicle has been driven approximately 10,000 miles. The vehicle had a total of 4 oil changes and I fuel pump replaced. CL-IO - 2002 Chevy Tahoe: This unmarked vehicle has been assigned to the Chief of Police. The vehicle is also used for special activities and patrol during inclement weather. The vehicle has been driven approximately 10,000 miles. The vehicle had a total of 3 oil changes, 3 batteries replaced (warranty), and 1 alternator replaced. 23 Goal for 2008: For 2008 we are hoping to replace squads #104 and #504, making our entire fleet of squads black and white Ford Crown Victorias. Officer Aron Sandmann and I will continue to perform routine inspections of all squads to prevent future problems. For 2007 we performed preventative maintenance on all squads, including transmission flushes and coolant flushes, which reduced major engine or transmission problems as seen in 2006. This preventative maintenance will continue for 2008. 24 F ORFEITURES Captain Ron Nelson The Minnesota legislature assists law. enforcement in its efforts to curtail and deter crime by allowing the seizure and subsequent sale of criminals' assets. It is the Centennial Lakes Police Department's policy to seize all assets permitted by statute regardless of their value or condition. All cases involving the possible forfeiture of criminals' property are referred to and reviewed by the applicable city or county prosecutor. In 2007 the Centennial Lakes Police Department forfeited the following vehicles: VEHICLE 1998 Cadillac Seville 2005 Plymouth Neon 1992 Cadillac Fleetwood 2001 Infinity 1993 Pontiac Grand Am 1992 Nissan Pathfinder 1991 Honda Civic 1990 Toyota Camry 1989 Mercury Sable 1997 Ford F150 1991 Acura Integra 1996 Ford Explorer 1996 Oldsmobile Achieva CITY OF RECORD STATUS Lexington Lexington Circle Pines Lexington Lexington Lexington Centerville Circle Pines Lexington Circle Pines Centerville Centerville Lexington Still Pending Returned to Lien Holder Still Pending Returned to Owner Ready to be Sold Sold at Auction Still Pending Still Pending Still Pending Still Pending Still Pending Still Pending Still Pending The Department began forfeiting vehicles in 1998, and through 2007 a total of 148 vehicles have been seized resulting from alcohol or drug offenses. We also seize other valuables and cash involved with drug activity. The proceeds of drug forfeitures, when dispersed, are divided as follows: 10% to the State, 20% to the County, and 70% to the Department. In 2007 the department sold 8 forfeited vehicles at auction. Another vehicle was totaled in a crash and forfeited by the department; we were paid the value of this vehicle by the insurance company. These vehicles were seized in previous years extending back to 2006. In addition to selling forfeited vehicles at auction, the department does, from time to time, utilize some of the vehicles for police purposes. For example, in 2006 we put a 2001 forfeited Mitsubishi Mirage into service as the department's investigator vehicle and also added a forfeited 2000 Chevrolet Silverado 4X4 pickup truck to our CSO fleet. 25 Of course, not every vehicle forfeited is of sufficient value for resale or department use. Yet, the department still removes such vehicles from criminals to make it that much more difficult to re-offend. In 2007 one such forfeited vehicle was sent to salvage. Additionally, a total of five forfeited vehicles were returned to prior lien holders or owners, per statutory requirements. Forfeitures in 2007 grossed a total of$19,645.22. Of course, there are various deductions involved in running a forfeiture program that are deducted from this figure. At the close of 2007 the department's forfeiture inventory includes 24 vehicles pending further action. 26 I NVESTIGA TIONS Adminsitrative Sergeant Russell Blanck Investigations in 2007 continued to be a cooperative effort between the Criminal Investigative Division of the Anoka County Sheriffs Office and the department. Having been promoted to the position of Administrative Sergeant in 2006, in 2007 my time was split between management and investigative duties including returning to uniform to supervise the day shift officers, backing officers on "hot" calls as needed, covering patrol shifts during staff shortages, illnesses and vacations, and supervising the department's investigative activities. I attended management meetings, sergeants' meetings, Operations Committee meetings, and Governing Board meetings, and served as the department's liaison to the City of Circle Pines writing numerous articles for its newsletter and attending many meetings of the city council. As was the case in 2006, 2007 was noteworthy for a very concerted and successful effort by the patrol division to handle as many investigations as possible of cases responded to by assigned officers. Patrol officers did a wonderful job of developing and following up on leads and seeing matters through to charging. The patrol division also was very involved in ascertaining and locating witnesses and assisting with such other functions of an investigative nature as time and their patrol duties permitted. I continued to further the department's investigative function by reviewing all officer reports and teletypes as well as criminal alerts from other departments to develop "intelligence" directly relevant to our department's mission. Additionally, I conducted interviews of victims, witnesses and suspects, prepared criminal prosecution charging documents, signed in-custody complaints, prepared affidavits to permit the continued detention 0 f arrestees, drafted and executed search warrants and conducted such other investigations, including in excess of 50 investigations resulting from requests for permits to purchase handguns. In 2007 I also supervised the department's new D.A.R.E. officer, Officer Dan Gates, as well as supervised and assisted with background investigations conducted by others of police officer candidates. I coordinated coverage by police, reserve and community service officers of community oriented policing activities such as National Night Out. I supervised the department's predatory offender monitoring efforts. I also continued in my role as the department's Public Information Officer providing the media with information concerning important department events, programs and cases. I also continued to lead the department's lethal (firearms) technology program. My work in this area is discussed elsewhere in the annual report. In 2007 many officers again took advantage of the "on-call investigator program" I initiated in 2001. The program, designed to provide direction on constitutional, procedural, charging and evidentiary issues to on-scene officers and supervisors, supplemented those services provided by the CID and the "on-call" prosecutor. 27 As in prior years, in 2007 I continued to undertake various other projects and assignments; including serving as the department's facilities manager and detention facility administrator, serving as the department's liaison to the local school district's Safety and Security Committee and "Cops 'n Good Guys" information sharing meetings, drafting training updates, analyzing and reporting upon recent case decisions impacting the work of police officers, preparing letters of commendation, providing bank robbery awareness training, drafting and/or revising various department policies, assisting officers with the preparation of proposals, running the department's pay program, writing articles, creating job descriptions, serving as a member of the board of directors of Mediation Services for Anoka County, drafting county-wide training on legal issues relating to carrying concealed handguns, and many other functions. 2007 was also noteworthy for the implementation 0 f systems changes in the department. I researched and proposed the department's acquisition of and conversion to digital image photography. Similarly, I began the process to convert the department's squad rifles from 20-year old pistol caliber to rifle caliber carbines. I also successfully lobbied for the department to participate in the Automated Pawn System, a database providing, among other things, valuable investigative intelligence necessary for the identification of possible criminal suspects and the recovery of missing and stolen property. Finally, in 2007 the department was authorized to appoint a full-time investigator to provide additional investigative services to the three communities and lessen the burden on Anoka County CID. Captain Nelson and I created and conducted the process that resulted in the selection of Officer Kris Carlson to begin in this capacity in January, 2008. 28 M EDICAL Sergeant B.J Stepan All officers within the Centennial Lakes Police Department have, at minimum, an initial First Responder level of medical training. First Responder training is specifically designed for those in professions which respond to emergency medical requests. The training provided instructs responders in the use of various types of medical equipment; including, but not limited to, Automatic External Defibrillators (AED), oxygen equipment and management, bleeding control and spine stabilization equipment. Centennial Lakes Police Department prides itself on the level of training and proficiency of our officers in response to medical emergencies. For the year 2007, officers responded to 355 requests for medical assistance. The average response time of officers from dispatch to arrival is just under 3 minutes. Once on scene, officers work with ambulance and fire personnel to assist those in need. Our officers wish to recognize the support and assistance of the Centennial Fire Department, the Lexington Fire Department and, of course, North Ambulance and Allina 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. 29 N EW DEPARTMENT PERSONNEL The Centennial Lakes Police Department was proud to add a new police officer to its ranks in 2007. Her name is Angela Kruyer and she has written a brief biography to introduce herself to the communities. ANGELA KRUYER I have a wonderful husband named Alex whom I have been married to for 13 years. Alex and I have two children, Victoria and Daniel. We have lived in Champlinfor 4 years. I am a native Minnsotan. I am the youngest of four children and the first in my family to go into Law Enforcement. I lVaS born in Minneapolis and lived in various cities around the state. I attended high school in Cloquet. I received my Law Enforcement degree from North Hennepin Community College in October, 2006. Before coming to Centennial Lakes Police Department, I -worked for American Security at the Shoppes at Arbor Lakes in Maple Grove. I was also a Police Reserve Officer for the city of Champlin. The Centennial Lakes Police Department personnel have made my first experiences as a sworn officer a rewarding one. I look forward to the coming years at CLPD. 30 p OLICE RESERVES Officer Matt Langreck Officer William Jacobson The past year has been a bountiful one for the Reserve Unit as we have had a full year of expansion and transition. The Reserve Unit ballooned in 2007 from six Reserves to a peak oftwelve Reserves in the fall. The second half ofthe year brought six new Reserves to the program all of whom are scheduled to attend the Anoka County Reserve Academy in the spring of 2008. The new Reserves include: Centennial Lakes CSO Emily Kirchner, Richard Eaton, Alicia Powers, Ann Millerbemd, Drew Boxrud, and former CLPD intern, Marcus Forsythe. In addition to the expansion in Reserve Officers, the Reserve Unit has managed to log over 1900 hours of volunteer work over the course of the year. It should be noted that more hours were logged in 2007 than in the previous three years combined! These hours were a culmination of continued monthly meetings, all yearly mandated trainings, staffmg all normally attended city and county-wide events, participating in ride-alongs with officers, and assisting with emergency calls for service. Reserve Officer Randy Erdman resigned from the unit after a year of faithful service. Randy volunteered nearly 190 hours from January to October of 2007 prior to leaving. Randy was a hard worker and will be missed by the Reserve Unit. The Reserve Unit also lost its original leader, Officer Jason Corlew, in the fall of 2007. Officer Corlew served as a Reserve Coordinator for more than four years; beginning the program with only one reserve. Officer Corlew played an intregal part in hiring, backgrounding, and training the twelve Reserve Officers we currently have. Officer Corlew will be missed as a full-time Reserve Coordinator but he will be a shoulder to lean on for future training. In Officer Corlew's absense, Officer Langreck and former Reservist and now Police Officer, Bill Jacobson, picked up the reigns and finished out the year of 2007. Officers Langreck and Jacobson hit the ground running and went to work organizing the Reserve Unit and focusing on a new Field Training Program. In addition to Officers Langreck and Jacobson; Sergeant Stepan and Captain Nelson have also played large roles in the mobilization of the new and expanded Reserve Unit. The Reserve Unit has set two major goals to accomplish in 2008: to have all current Reserves complete the new Field Training Program and to log 3,000 hours of service in the new year. 31 p REDATORY OFFENDER REGISTRY Officer Aroll Sandmann Officer Bill Jacobson The Predatory Offender Registry (POR) is maintained by the Minnesota Bureau of Criminal Apprehension (BCA). The registry was created to monitor predatory offenders in the state of Minnesota. Predatory offenders are placed into categories referred to by the BCA as Level I, Level II, and Level III. Level I offenders are considered least likely to re-offend. Level III offenders are considered most likely to re-o ffend. The POR Registry keeps track of each offender's home and work addresses, as well as vehicles registered to and used by each offender The Centennial Lakes Police Department monitors the individuals residing within Centerville, Circle Pines, and Lexington who are listed on the Predatory Offender Registry. The list of registered predatory offenders residing in our communities is updated monthly by the Centennial Lakes Police Department. This number is fluid as offenders are constantly moving in and out of our cities. At any given time there are normally around twenty-five offenders residing within the three cities. At the end of2007 there were 21 offenders being monitored by the Centennial Lakes Police Department. Five offenders lived in Centerville, seven in Circle Pines and nine in Lexington. Three offenders were classified as Level I offenders, all others were not assigned a risk level. In addition to monthly updates, officers made four contacts during 2007 with each offender at their registered address to verify that the offenders were in compliance with the state's registration requirements. Digital pictures were also taken of each offender in order to update the BCA files. The Centennial Lakes Police Department will continue to keep a current list of the predatory offenders living in our jurisdiction and continue to make contact with the offenders at their registered addresses to verify that the offenders are compliant. 32 L_ s AFE AND SOBER & DWI TASK FORCE Sergeant Pat Aldrich In 2007 the Centennial Lakes Police Department, along with the other eleven Anoka County police agencies, joined the Minnesota Office of Traffic Safety and the Minnesota State Patrol in implementing the Anoka County DWI Task Force. The objective of the grant-aided task force was designed to reduce the number of alcohol related fatalities in Anoka County. Anoka County reported the third highest number of alcohol related traffic deaths during the years of 2004 - 2006. The established goal was to eliminate Anoka County from Minnesota's 15 deadliest counties list. High visibility and localized saturation were two of the main focuses. Each agency would send one representative to an 8 hour overtime shift. There were four shifts posted each month, starting in May 2007 and running throughout the rest ofthe year. Each shift would enforce a different stretch of roadway in the county. As part of the grant, each officer wore a flourescent traffic vest and each squad car displayed an Anoka County DWI Task Force decal. There were also two illuminated/automated traffic signs posted on either end of the targeted road, advising oncoming traffic of the DWI enforcement. There were more than 6900 vehicles stopped in 2007 and over 490 DWI arrests were made. In September, 2007, after sitting out the required year, the Centennial Lakes Police Department re-joined Minnesota Safe and Sober along with the rest of Anoka County. There was only one overtime saturation held in October. The saturation was held during the staewide seatbelt mobilization. During the week and a half long wave, officers issued 123 seatbelt cittations. That was the seventh highest total reported by any of the participating departments in the state. There were 400 departments who reported. As the statistics show, our officers continued their efforts in keeping our roadways safe. These efforts reflect how important traffic safety is to our community. 33 S PEED ENFORCEMENT AND RADAR In 2007, the Centennial Lakes Police Department aggressively enforced speed limits within our jurisdictions. Officers issued 606 citations for speeding violations in the cities of Centerville, Circle Pines, and Lexington. This totals tops last year's total by 63 citations. Officers issued 3, 724 warnings in 2007 for moving violations, 374 more than last year. This total includes, but is not limited to, warnings for speed.. The Centennial Lakes Police Department maintained a proactive approach to speeding violations in aneffort to reduce property damage and injuries caused by drivers operating their vehicles at unsafe speeds. Aggressive speed enforcement also led to the discovery of unlicensed drivers, intoxicated drivers, warrant arrests, and insurance violations. In conjunction with random speed patrol, officers responded to citizen complaints of speeding in specific locations. Officers also provided a high profile presence in school zones during student arrival and departure to deter speeding violations. The Centennial Lakes Police Department's patrol fleet is equipped with six top of the line Stalker brand dash mounted radars, two of which were purchased early in 2007. With the addition of these two radars, the department has completed its update of the radar fleet. This technology greatly increases the effectiveness of speed patrols. In inclement weather, officers have a marked four wheel drive truck equipped with radar at their disposal. This has not been available to officers in the past. Officer also have a hand- held laser unit. In 2007, a large portion of the patrol officers were certified in the use of this laser. 34 s URVEY RESULTS Office Manager Cindy Lewis In November of 2007 the cities of Centerville, Circle Pines and Lexington conducted a phone survey to measure how satisfied residents are with the city services provided. As part of that survey, questions were asked about the Centennial Lakes Police Department. Results from this survey were extremely positive. To quote Mr. Bill Morris from Decision Resources, the firm hired to conduct the survey, "People had real confidence in the police, they feel the police were doing a good job. Ifwe take a look at the police service over all, the rating in general is among the highest that we've got across the metro. What we've got here is one of the most uniformly high ratings of a police department existing across the metropolitan area during the past five years". The following graphs show the results of several questions asked regarding the residents' satisfaction with police services. Public Safety Concerns 2007 Tri-Cities Study Violent Crime Traffic Speeding Drugs Youth CrimesNandalism Identity Theft Code Violations Business Crimes Residential Crimes Equally None Unsure 53 _Centerville _Circle Pines _Lexington o 10 20 30 40 50 60 Decision Resources, Ltd. Neighborhood Police Activities 2007 Tri-Cities Study Too Much 100 81 About Right Not Enough Unsure o 20 40 60 80 I_Patrolling _Traffic Enforcement I Decision Resources, Ltd. 35 Victim of Crime 2007 Tri-Cities Study No 90% Victim of Crime during Past Two Years Decision Resources, Ltd. Reported Crime Excellent Good Only Fair Poor Prompt Not Prompt 12 20 40 60 80 100 I_Percentage I o Contact for Police Service 2007 Tri-Cities Study Contact during Past Two Years Decision Resources, Ltd. Excellent I I I I I I I I I I I I I I I I I I I I 94 I I I Good Only Fair Poor Prompt Not Prom pt o 20 40 60 80 100 120 I_percentage I 36 City Services: Centerville 2007 Tri-Cities Study Police Service Fire Service Recycling/Garbage Building Inspections Park Maintenance Recreation Services Animal Control Code Enforcement City Street Repair/Maintenance Snow Plowing Street Lighting Street Sweeping o 20 40 60 80 100 120 I_Positive _Negative I Decision Resources. Ltd. City Services: Circle Pines 2007 Tri-Cities Study Police Service Fire Service Recycling/Garbage Building Inspections Park Maintenance Recreation Services Animal Control Code Enforcement City Street Repair/Maintenance Snow Plowing Street Lighting Street Sweeping o 20 40 60 80 100 120 I_Positive _Negative I Decision Resources. Ltd. City Services: Lexington 2007 Tri-Cities Study Police Service Fire Service Recycling/Garbage Building Inspections Park Maintenance Recreation Services Animal Control Code Enforcement City Street Repair/Maintenance Snow Plowing Street Lighting Street Sweeping o 20 40 60 80 100 120 I_POSitive _Negative I Decision Resources. Ltd. 37 T RAINING Sergeant Pat Aldrich Providing high quality and cost-effective training for the Centennial Lakes Police personnel continued to be a high priority in 2007. Professional training benefits the officers, the department, and the communities in which we serve. The department benefits by having well-trained police officers, minimizing department liability. The communities also realize the benefits of having officers who have a well-rounded base of knowledge and experience in a variety of areas. The Minnesota State Peace Officers Standards and Training Board (P.O.S.T.) and the federal government, through the Occupational Safety and Health Administration (OSHA), continue to place additional training mandates on law enforcement. Our department continues to identify and use its resources to accomplish compliance with these standards. During 2007, 0 fficers continued to utilize "daily training". During each duty shift officers are required to complete a topic assigned for that day. Most ofthe scheduled training topics could be considered "high risk/low frequency" events. This training allows officers to refresh their knowledge and review proper procedures to be prepared for infrequent events. Many mandated information requirements are covered with the daily training program. 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 procedure for officers to follow. The following is a list of mandated topics and professional training courses attended by our officers during 2007: LEGAL County Attorney Update Minnesota Search and Seizure DWI & Traffic Safety Laws DWI Update USE OF FORCE Anoka County Gamma Shoot SMG Familiarization/Recognition Anoka County Night Shoot Summer Shoot Taser@ Recertification Taser@ Familiarization and Deployment Instructor Development Dynamic Shoot SMG Shoot Scenario-basedlHands On Use of Force Recertification Use of Force Instructor Firearms Recertification 38 SPECIALTY Field Training Officer FTO School Basic Radar Intoxilyzer 5000 Intoxilyzer 5000 Refresher Criminal Justice Institute Background Investigator ID Theft Awareness Command Leadership Leadership and Influence Standardized Field Sobriety Tests Vehicle Forfeiture Major Case Management Chief Executive Officer Safe Schools Criminal Interdiction (Through Traffic Stops) Personnel Management and Strategy Planning 39 First Responder Refresher First Aid Essentials EMT Refresher First Responder Certification Advanced Police Driving Pursuit Intervention Technique Safe and Sober Conference Narcotics Investigation Confessions ofa Car Thief Crime Prevention Awareness MPPOA D.A.R.E. Governor's Conference Lidar Emergency Planning Continuity 0 f Operations u SE OF FORCE Officer Jon Krueger Officer Jason Corlew During the year of 2007 we continued to provide excellent Use of Force training to our officers. Our department participated in several shoots this year including two Anoka County shoots; the Gamma shoot and the Night/Inclement Weather shoot, as well as several department shoots. All of our officers completed an eight hour training in cooperation with Anoka County that included: handcuffmg, impact weapon, chemical irritant, weapon retention, edged weapon defense, hand to hand combat, and take downs. Officers concluded the county training with simunition training that included shooting parrafin/paint bullets in live-action scenarios. All 0 f the shoots attended were very educational and received positive feedback from attendees. One new officer joined our department in 2007 and she received three days of specialized training that included firearms, Tasers@, and basic use of force. During the year 2007, officers from this department used their Tasers@ in 12 incidents involving use of force situations. Of the 12 cases, the Taser@ was actually deployed in three cases. In the other nine cases, the Taser@ was merely pointed at the subject. The Taser@ has been a very useful tool and has helped officers apprehend threatening subjects without causing substantial harm to the subject or officer. Officers received two hours ofTaser@ Refresher training this past year. The following Use of Force and Firearms trainings were attended by officers during 2007: March 2007 Gamma Shoot conducted at the Anoka County indoor range. "Gamma" is an interactive training where scenarios are projected onto a paper screen. The officer must interact with this scenario, making life and death decisions whether to shoot or not shoot. The officer's actions influence the scenario's ending. May - October 2007 Department Shoot at the Anoka County outdoor range. This training was conducted individually with each officer by our department firearms instructors on open range dates. It covered officers' sidearms and rifles and included ftring from positions while moving. Also covered was firing while turning to the right or left and completing tactical reloads. 40 May - November 2007 Use of Force Training at ACLET (Anoka County Law Enforcement Training Center). This eight hour training was conducted with other law enforcement members from throughout Anoka County. This training covered handcuffing techniques, weapon retention, baton strikes, chemical irritant deployment, takedowns, and hand to hand combat. The day of training concluded with four hours of scenario-based training with simunitions. June - July 2007 Taser Refresher training conducted at our department. This two hour training included a written test, deploying two cartridges at a target and legal updates. October - December 2007 Use of Force training conducted at our department. This newly implemented two hour training included some refresher training on the basics of handcuffmg, takedowns, baton strikes, and weapon retention. Most of this hands-on training involved five realistic scenarios with the department's Use of Force trainers. This training was made possible because ofthe purchase by this department of a training suit and padded floor mats. November - December 2007 Night/Inclement Weather Shoot at the Anoka County outdoor range. This training was coordinated with all Anoka County agencies and was completed at night. Officers fired 50 rounds from various distances with the use of a flashlight. It also included firing from the "off' hand and using gloves. In addition to the training conducted in 2007, firearms instructors also cleaned and maintained six SMG's (squad rifles) and inspected officers' weapons, including two surprise inspections. We look forward to adding new training equipment so we can complete more department training at our own facility. 41 W EBSITE Officer Daniel Gates Our department's website was revamped in 2006 and continues to evolve. We have contracted with GovOffice.com to provide us a template to use. We have been grateful for the addition of email to our communication options, as it allows department information to be spread to all employees quickly and efficently. The website has been expanded to include crime prevention information, information on the Reserve and D.A.R.E. programs, downloadable annual reports, copies of Governing Board meeting minutes, employment opportunities, and more. One of the biggest assets ofthe website is the listing of commonly used ordinances for each city. This section benefits both the officer and the citizen as each is able to read the exact language ofthe ordinances that are most often addressed. Please check out our website at httv://www.centenniallakespd.com to see all the information it contains. The website is a valuable tool that we will continue to grow and improve in 2008. 42 CITY OF CENTERVILLE CENTERVILLE, MINNESOTA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,2007 CITY OF CENTERVILLE, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 2007 I. INTRODUCTORY SECTION Elected and Appointed Officials II. FINANCIAL SECTION Independent Auditor's Report Management's Discussion and Analysis 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 (Deficits) 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 Statements of Net Assets Statements of Revenues, Expenses and Changes in Fund Net Assets Statements of Cash Flows Notes to the Financial Statements 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 Balances (Deficits) Summary Financial Report Revenues and Expenditures for General Operations - Governmental Funds III. OTHER REPORTS Report on Minnesota Legal Compliance Report on Internal Control Over Financial Reporting Based on and Audit of Financial Statements Schedule of Findings and Responses Page No. 2-3 I - XI 4 5-6 7-8 9 10-11 12 13 14 - 15 16 - 17 18 - 21 22 - 40 41 - 43 44 - 46 47-51 52 - 55 56 - 59 60 61 62 - 63 64 - 65 INTRODUCTORY SECTION CITY OF CENTERVILLE CENTERVILLE, MINNESOTA YEAR ENDED DECEMBER 31, 2007 CITY OF CENTERVILLE, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31,2007 ELECTED Name Title Term Expires Mary Capra Linda Broussard Michelle Lakso JeffPaar Tom Lee Mayor Council Member Council Member Council Member Council Member 12/31/08 12/31/1 0 12/31/08 12/31/08 12/31/10 APPOINTED Dallas Larson Teresa Bender John Meyer City Administrator City Clerk Finance Director -1- FINANCIAL SECTION CITY OF CENTERVILLE CENTERVILLE, MINNESOTA YEAR ENDED DECEMBER 31, 2007 l Grandview Square 5201 Eden Avenue Suite 370 Edina, MN 55436 INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Council City of Centerville, Minnesota We have audited the accompanying fmancial 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 of and for the year ended December 31, 2007, which collectively comprise the City's basic fmancial statements as listed in the table of contents. These financial statements are the responsibility ofthe 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 fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective fmancial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2007, 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 year then ended in conformity with accounting principles generally 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 fmancial 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. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com Page Two Our audit was conducted for the purpose of forming opinions on the fmancial 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 fmancial 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 29, 2008 Minneapolis, Minnesota t abrk (J" <:~) L LY' ABDO, EICK & MEYERS, LLP Certified Public Accountants 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I Management's Discussion and Analysis I As management of the City of CentervilIe, Minnesota, (the City), we offer readers of the City's financial statements this narrative overview and analysis of the [mancial activities of the City for the fiscal year ended December 31, 2007. I Financial Highlights · The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $20,100,475 (net assets). Of this amount, $6,401,925 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. . The City's total net assets increased by $624,931. . As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $4,895,765 an increase of $20,354 in comparison with the prior year. Approximately 29.2 percent of this total amount, $1,428,071, is available for spending at the City's discretion, but has been designated for specific purposes. . Atthe end ofthe current fiscal year, unreserved fund balance for the General fund was $1,428,071, or 59.5 percent of total General fund expenditures. While these funds are not legally reserved, they are designated for future purposes. · The City's total debt increased $1,493,356, during the current fiscal year. Major activity in debt occurred from the issuance of $2,600,000 in bonds. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic [mancial statements. The City's basic [mancial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the [mancial statements. This analysis contains other supplemental information in addition to the basic financial statements. -1- Management Discussion and Analysis - Continued May 29,2008 Figure 2 summarizes the major features of the City's fmancial 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, fITe 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/liability All assets and liabilities, both Only assets expected to be All assets and liabilities, both information fmancial 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 ofin 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 fmancial 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 intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, economic development, culture and recreation, miscellaneous and interest on long-term debt. The business-type activities of the City include water, sewer, storm water and recycling. -III- Management Discussion and Analysis - Continued May 29, 2008 The government-wide financial statements can be found on pages 4 - 6 of this report. Fund Financial Statements Afund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other State and local governments, uses fund accounting to ensure and demonstrate compliance with fmance-related legal requirements. All ofthe funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmentalfunds. Governmentalfunds are used to account for essentially the same functions reported as governmental activities in the government-wide fmancial statements. However, unlike the government-wide fmancial statements, governmental fund fmancial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term fmancing requirements. Because the focus of governmental funds is narrower than that of the government-wide fmancial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide fmancial statements. By doing so, readers may better understand the long-term impact by the government's near-term fmancing 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 27 individual governmental funds, 12 of which are Debt Service funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Debt Service, Park and 2006 Municipal Improvements funds. Data from the other 19 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 fmancial statements can be found on pages 7 - 13 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 fmancial statements. The City uses enterprise funds to account for its water, sewer, storm water and recycling. The proprietary fund provides the same type of information as the government-wide financial statements, only in more detail. The proprietary fund fmancial statements provide separate information for each of the enterprise funds. The basic proprietary fund fmancial statements can be found on pages 14 - 21 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 fmancial statements. The notes to the financial statements can be found on pages 22 - 40 of this report. Other Information The combining statements referred to earlier in connection with non-major governmental funds are presented following the notes to fmancial statements. Combining and individual fund statements and schedules can be found on pages 41 - 60 of this report. -IV- Management Discussion and Analysis - Continued May 29,2008 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 $20,100,475 at the close of the most recent fiscal year. By far, the largest portion of the City's net assets (49.6 percent) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment); less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Assets Current and other assets Capital assets Summary of Net Assets Governmental Activities Business-type Activities Increase Increase 2007 2006 (Decrease) 2007 2006 (Decrease) $ 6,918,012 $ 6,550,631 $ 367,381 $ 3,963,867 $ 3,476,637 $ 487,230 12,164,881 10,415,099 1,749,782 6,820,392 7,1l7,535 (297,143) 19,082,893 16,965,730 2,117,163 10,784,259 10,594,172 190,087 9,175,675 7,683,291 1,492,384 9,377 9,554 (I 77) 562,433 379,705 182,728 19,192 11,808 7,384 9,738,108 8,062,996 1,675,112 28,569 21,362 7,207 Total assets Liabilities Noncurrent liabilities outstanding Other liabilities Total liabilities Net assets Invested in capital assets, net ofrelated debt Restricted for Future expansion Debt service Unrestricted (297,143) 480,023 $ 182,880 Total net assets The increase in current and other assets in governmental activities is attributed to unspent bond sale proceeds to be expended in 2008. The increase in current and other assets in business-type activities is attributed to the interfund loan to the general fund for Hidden Springs Park improvements and the purchase of the new public works facility. The increase in capital assets in the government-type activities and the business-type activities is attributed to improvements completed in Hunters Crossing III Addition, Pheasant Marsh 3rd Addition, the purchase of a new public works facility and improvements to Hidden Springs Park. The increase in non-current liabilities outstanding in the governmental activities is attributed to the debt for the CSAH 14, Old Mill Road and Fairview Street projects (GO Improvement Bonds of2007A). An additional portion of the City's net assets (18.6 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($6,401,925) 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 Discussion and Analysis - Continued May 29,2008 Governmental activities. Governmental activities increased the City's net assets by $442,051, thereby accounting for 71 percent of the total growth in the net assets of the City. Key elements of this increase are as follows: 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 Storm Water Total expenses Increase in net assets before before capital contributions from other funds and transfers Capital contributions (to) from other fune Transfers Change in net assets Net assets, January 1 Net assets, December 31 Changes in Net Assets 2007 $ 545,825 81,905 436,460 1,849,661 1,724 106,114 195,859 9,611 3,227,159 532,422 999,935 751,402 134,706 32,751 333,892 2,785,108 442,051 442,051 8,902,734 $ 9,344,785 Governmental Activities 2006 $ 416,135 417,526 1,402,196 1,767,110 5,642 36,026 210,512 (3,190) 4,251,957 538,308 999,878 423,484 125,765 398,064 19,960 231,974 2,737,433 1,514,524 (839,504) (233,802) 441,218 8,461,516 $ 8,902,734 Increase (Decrease) $ 129,690 (335,621) (965,736) 82,551 (3,918) 70,088 (14,653) 9,611 3,190 (1,024,798) (5,886) 57 327,918 8,941 (365,313) (19,960) 101,918 47,675 (1,072,473) 839,504 233,802 833 441,218 $ 442,051 2007 $ 599,309 123,238 164,677 (4,320) 882,904 308,855 357,276 33,893 700,024 182,880 182,880 10,572,810 $ 10,755,690 Business-type Activities 2006 $ 699,051 427,529 100,803 1,227,383 349,563 363,425 23,996 736,984 490,399 839,504 233,802 1,563,705 9,009,105 $ 10,572,810 Increase (Decrease) $ (99,742) (304,291) 63,874 (4,320) (344,479) (40,708) (6,149) 9,897 (36,960) (307,519) (839,504) (233,802) (1,380,825) 1,563,705 $ 182,880 The decrease in program revenues for capital grants and contributions in governmental activities and business-type activities is attributed to less private residential developments. Governmental activities revenues changed as a result of additional property tax receipts and the elimination of the homestead credit state reduction. In total, governmental activities expenses remained unchanged. However, public works expenditures increased as a result of a partial payment for the new public works facility and economic development declined because there were no additional professional services required for pending development projects. -VI- Management Discussion and Analysis - Continued May 29,2008 The following graph depicts various governmental activities and shows the program revenues and expenses directly related to those activities. Expenses and Program Revenues - Governmental Activities $1,200,000 $800,000 $1,000,000 $600,000 $400,000 $200,000 $- General government Public safety Public works Culture and Economic recreation development I_ Program revenues - Expenses 1 Interest on long-term Revenues by Source - Governmental Activities Unrestricted investment earnings 6.07% Gain (loss) on sale of capital assets 0.30% Grants and contributions not restricted to specific programs 3.29% Operating grants and contributions 2.54% Capital grants and contributions 13.52% Taxes 57.37% For the most part, increases in expenses closely paralleled inflation and growth in the demand for services. -VII - Management Discussion and Analysis - Continued May 29,2008 Business-type activities. Business-type activities increased the City's net assets by $182,880, accounting for 29 percent ofthe growth in the City's net assets. Key elements of this increase are as follows; Expenses and Program Revenues - Business-type Activities $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- Water Sewer Storm water Recycling I_ Program revenues - Expenses 1 Revenues by Source - Business-type Activities Charges for services 67.55% Capital grants and contributions 13.89% Investment earnings 18.56% -VIII - Management Discussion and Analysis - Continued May 29, 2008 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. Governmentalfunds. The focus of the City's governmentalfunds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's fmancing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. Activity in the City's major governmental funds is discussed below: As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of$4,895,765, an increase of$20,354 in comparison with the prior year. Approximately 50 percent of this total amount, or $2,441,035 constitutes unreservedfund 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 $2,454,730. Proprietary funds. The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets ofthe enterprise funds at the end of the year amounted to $3,863,667. The total growth in net assets for the funds was $182,880. 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 exceeded budget by a combined $112,682: -IX- Management Discussion and Analysis - Continued May 29,2008 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, 2007, amounts to $18,985,273 (net of accumulated depreciation). This investment in capital assets includes land, structures, improvements, machinery and equipment, park facilities, roads, highways and bridges. Major capital asset events during the current fiscal year included the following: . Initiation of the Fairview Street, CSAH 14 and Old Mill Road projects . Initiation of the purchase of a new public works facility . Improvements to Hidden Springs Park Additional information on the City's capital assets can be found in Note 3 on page 31 - 32 of this report. Capital Assets Net of Depreciation Governmental Activities Business-type Activities Increase Increase 2007 2006 (Decrease) 2007 2006 (Decrease) Land $ 2,594,350 $ 2,594,350 $ $ $ $ Buildings 814,597 472,098 342,499 Construction in progress 1,730,567 1,730,567 Infrastructure 6,536,423 6,865,271 (328,848) 6,681,890 6,949,698 (267,808) Machinery and equipment 488,944 483,380 5,564 138,502 167,837 (29,335) Total $ 12,164,881 $ 10,415,099 $ 1,749,782 $ 6,820,392 $ 7,117,535 $ (297,143) Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of$9,145,647. While all of the City's bonds have revenue streams, they are all backed by the full faith and credit of the City. The net increase in General obligation bonds resulted from the payment of the GO Temporary Improvement Bonds and the issuance of debt for 2007 improvements (GO Improvement Bonds, Series 2007 A). Outstanding Debt Governmental Activities Business-type Activities Increase Increase 2007 2006 (Decrease) 2007 2006 (Decrease) General obligation bonds $ 9,145,647 $ 7,652,291 $ 1,493,356 $ $ $ Compensated absences payable 30,028 31,000 (972) 9,377 9,554 (177) Total $ 9,175,675 $ 7,683,291 $ 1,492,384 $ 9,377 $ 9,554 $ (177) 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 taxable market value totals $357,863,100, which calculates to a debt margin of $7,157,262. Debt fmanced partially or entirely by special assessments is not applied against the City's debt limit, nor is debt financed by proprietary fund revenues. Currently the City has $745,646 of general obligation debt outstanding leaving a debt margin of $6,411 ,616. Additional information on the City's long-term debt can be found in Note 3F on pages 33 - 34 of this report. -x- Management Discussion and Analysis - Continued May 29,2008 Economic Factors and Next Year's Budgets and Rates . Residential building activity is expected to continue its slowdown reflecting the metropolitan twin cities area construction downturn. . Inflationary trends in the region compare favorably to national indices. . Commitment to CSAH 14 reconstruction and downtown redevelopment projects. All of these factors were considered in preparing the City's budget for the 2008 fiscal year. Requests for Information This financial report is designed to provide a general overview of the City's fmances 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, 2007 THIS PAGE IS LEFT BLANK INTENTIONALL Y CITY OF CENTERVILLE, MINNESOTA STATEMENT OF NET ASSETS DECEMBER 31, 2007 Governmental Business-type Activities Activities Total ASSETS Cash and temporary investments $ 5,899,131 $ 2,922,564 $ 8,821,695 Receivables Accrued interest 20,660 20,660 Delinquent taxes 84,827 84,827 Accounts 60,074 155,212 215,286 Special assessments 1,383,180 188,575 1,571,755 Due from other governments 2,653 2,653 Internal balances (675,000) 675,000 Inventories 8,985 8,985 Prepaid items 13,340 13,531 26,871 Deferred charges 129,147 129,147 Capital assets Land 4,324,917 4,324,917 Depreciable assets (net of accumulated depreciation) 7,839,964 6,820,392 14,660,356 TOTAL ASSETS 19,082,893 10,784,259 29,867,152 LIABILITIES Accounts payable 126,406 14,751 141,157 Accrued salaries payable 13,655 2,575 16,230 Contracts payable 61,228 61,228 Due to other governments 138,963 1,366 140,329 Accrued interest payable 108,776 108,776 Deposits payable 98,394 500 98,894 Deferred revenue 15,011 15,011 Noncurrent liabilities Due within one year Accrued compensated absences payable 30,028 9,377 39,405 Bonds payable 1,293,750 1,293,750 Due in more than one year Bonds payable 7,851,897 7,851,897 TOTAL LIABILITIES 9,738,108 28,569 9,766,677 NET ASSETS Invested in capital assets, net of related debt 3,148,381 6,820,392 9,968,773 Restricted for Future expansion 71,631 71,631 Debt service 3,658,146 3,658,146 Unrestricted 2,538,258 3,863,667 6,401,925 TOTAL NET ASSETS $ 9,344,785 $ 10,755,690 $ 20,100,475 The notes to the financial statements are an integral part of this statement. -4- Functions/Programs Governmental activities General government Public safety Public works Culture and recreation Economic development Interest on long-term debt Total governmental activities Business-type activities Water Sewer Storm water Recycling Total business-type activities Total CITY OF CENTERVILLE, MINNESOTA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2007 Program Revenues Operating Capital Grants Charges for Grants and and Expenses Services Contributions Contributions $ 532,422 $ 47,514 $ 10,000 $ 999,935 321,887 71,905 751,402 158,565 410,807 134,706 8,277 25,653 32,751 9,582 333,892 2,785,108 545,825 81,905 436,460 308,855 357,276 33,893 260,190 290,581 48,538 61,375 60,190 1,673 700,024 599,309 123,238 $ 3,485,132 $ 1,145,134 $ $ 559,698 81,905 General revenues Taxes Property taxes, levied for general purposes Other taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain (loss) on sale of capital assets Total general revenues and capital contributions from other funds Change in net assets Net assets, January 1 Net assets, December 31 The notes to the [mancial statements are an integral part of this statement. -5- Net (Expenses) Revenues and Changes in Net Assets I _ Governmental Business-type Activities Activities Total $ (474,908) $ $ (474,908) (606,143) (606,143) (182,030) (182,030) (100,776) (100,776) (23,169) (23,169) (333,892) (333,892) (1,720,918) (1,720,918) 12,710 12,710 (6,505) (6,505) 14,645 14,645 1,673 1,673 22,523 22,523 (1,720,918) 22,523 (1,698,395) 1,849,661 1,849,661 1,724 1,724 106,114 106,114 195,859 164,677 360,536 9,611 (4,320) 5,291 2,162,969 160,357 2,323,326 442,051 182,880 624,931 8,902,734 10,572,810 19,475,544 $ 9,344,785 $ 10,755,690 $ 20,100,475 -6- THIS PAGE IS LEFT BLANK INTENTIONALL Y FUND FINANCIAL STATEMENTS CITY OF CENTERVILLE CENTERVILLE, MINNESOTA YEAR ENDED DECEMBER 31, 2007 CITY OF CENTERVILLE, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2007 Debt General Service Park ASSETS Cash and temporary investments (deficits) $ 2,083,608 $ 2,393,899 $ 86,038 Receivables Accrued interest 20,660 Delinquent taxes 84,827 Accounts 11,191 Special assessments 12,404 1,370,776 Due from other governments 2,653 Prepaid items 7,093 6,247 TOTAL ASSETS $ 2,222,436 $ 3,770,922 $ 86,038 LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable $ 136,678 $ 4,000 $ 10,656 Advances from other funds 400,000 275,000 Due to other governments 138,963 Contracts payable Accrued salaries payable 13,604 Accrued compensated absences payable Deferred revenue 98,027 1,356,319 TOTAL LIABILITIES 787,272 1,360,319 285,656 FUND BALANCES (DEFICITS) Reserved for debt service 2,441,390 Reserved for prepaid items 7,093 6,247 Unreserved Designated for, reported in the General fund Working capital 1,428,071 Undesignated, reported in Special revenue funds Debt Service fund (37,034) Capital projects funds (199,618) TOTAL FUND BALANCES (DEFICITS) 1,435,164 2,410,603 (199,618) TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $ 2,222,436 $ 3,770,922 $ 86,038 The notes to the financial statements are an integral part of this statement. -7- 2007 Other Total CSAH 14 2007 Governmental Governmental Improvements Development Funds Funds $ 1,238,472 $ 99,270 $ (2,156) $ 5,899,131 20,660 84,827 48,883 60,074 1,383,180 2,653 13,340 $ 1,238,472 $ 99,270 $ 46,727 $ 7,463,865 $ 55,657 $ 15,595 $ 25,890 $ 248,476 675,000 138,963 37,552 37,552 51 13,655 108 108 1,454,346 55,657 15,595 63,601 2,568,100 2,441,390 13,340 1,428,071 18,962 18,962 (37,034) 1,182,815 83,675 (35,836) 1,031,036 1,182,815 83,675 (16,874) 4,895,765 $ 1,238,472 $ 99,270 $ 46,727 $ 7,463,865 -8- THIS PAGE IS LEFT BLANK INTENTIONALL Y CITY OF CENTERVILLE, MINNESOTA RECONCILIA nON OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS GOVERNMENTAL FUNDS AS OF DECEMBER 31,2007 Total fund balances - governmental $ 4,895,765 Amounts reported for the governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not fmancial resources and therefore are not reported as assets in governmental funds. Cost of capital assets Less: accumulated depreciation 14,875,686 (2,710,805) 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 (9,145,647) 129,147 (29,920) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds Special assessments Delinquent taxes 1,368,723 70,612 Governmental funds do not report a liability for accrued interest until due and payable (I 08,776) Total net assets - governmental activities $ 9,344,785 The notes to the fmancial statements are an integral part of this statement. -9- ---- CITY OF CENTERVILLE, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2007 Debt General Service Park REVENUES Taxes Property $ 1,813,923 $ $ Gambling 1,724 Licenses and permits 220,855 Intergovernmental 286,590 Charges for services 2,228 Fines and forfeitures 37,529 Special assessments 292,755 Interest on investments 60,501 108,656 1,386 Miscellaneous 46,411 78,492 28,078 TOTAL REVENUES 2,469,761 479,903 29,464 EXPENDITURES Current General government 562,024 Public safety 1,034,234 Public works 280,586 Culture and recreation 114,504 254,737 Economic development 17,257 Capital outlay General government 4,285 Public safety 5,325 (19,680) Public works 372,153 Culture and recreation 74,388 Economic development Debt service Principal 11,375 1,086,964 Interest and other 278,918 TOTAL EXPENDITURES 2,401,743 1,346,202 329,125 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 68,018 (866,299) (299,661) OTHER FINANCING SOURCES (USES) Sale of capital assets 9,611 Transfers in 367,582 25,000 Bonds issued 141,320 Discount on bonds issued Transfers out (205,800) (23,160) TOTAL OTHER FINANCING SOURCES (USES) (196,189) 485,742 25,000 NET CHANGE IN FUND BALANCES (128,171) (380,557) (274,661) FUND BALANCES, JANUARY 1 1,563,335 2,791,160 75,043 FUND BALANCES (DEFICITS), DECEMBER 31 $ 1,435,164 $ 2,410,603 $ (199,618) The notes to the financial statements are an integral part of this statement. -10- 2007 CSAH 14 Improvements 2007 Development Other Governmental Funds Total Governmental Funds $ $ $ $ 1,813,923 1,724 220,855 286,590 2,228 37,529 292,755 2,433 175 22,708 195,859 10,431 48,883 212,295 2,433 10,606 71,591 3,063,758 562,024 1,034,234 7,615 288,201 7,622 376,863 17,257 4,285 (14,355) 306,277 599,672 590,916 1,869,018 69 74,457 15,494 15,494 1,098,339 278,918 306,277 599,672 621,716 5,604,735 (303,844) (589,066) (550,125) (2,540,977) 9,611 281 392,863 1,507,251 680,749 251,000 2,580,320 (20,592) (8,008) (28,600) (163,903) (392,863) 1,486,659 672,741 87,378 2,561,331 1,182,815 83,675 (462,747) 20,354 445,873 4,875,411 $ 1,182,815 $ 83,675 $ (16,874) $ 4,895,765 -11- CITY OF CENTERVILLE, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 3 I, 2007 Total net change in fund balances - governmental 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 issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Principal repayments Debt issued or incurred Bond issuance costs 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 funds report debt issuance premiums and discounts as an other financing source or use at the time of issuance. Premiums and discounts are reported as an unamortized asset or liability in the government-wide financial statements. Certain revenues are recognized as soon as it is earned. Under the modified accrual basis of accounting certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Special assessments 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. Compensated absences Change in net assets - governmental activities The notes to the financial statements are an integral part of this statement. -12- $ 20,354 2,172,491 (421,138) (1,571) 1,086,964 (2,580,320) 18,564 (36,763) 28,600 118,052 35,738 1,080 $ 442,051 CITY OF CENTERVILLE, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31, 2007 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) REVENUES Taxes General property taxes $ 1,961,900 $ 1,961,900 $ 1,813,923 $ (147,977) Gambling 1,724 1,724 Licenses and permits 162,000 162,000 220,855 58,855 Intergovernmental 117,000 117,000 286,590 169,590 Charges for services 2,228 2,228 Fines and forfeitures 40,000 40,000 37,529 (2,471) Interest on investments 58,000 58,000 60,501 2,501 Miscellaneous 19,000 19,000 46,411 27,411 TOTAL REVENUES 2,357,900 2,357,900 2,469,761 111,861 EXPENDITURES Current General government 581,000 581,000 562,024 18,976 Public safety 1,016,000 1,016,000 1,034,234 (18,234) Public works 315,500 315,500 280,586 34,914 Culture and recreation 85,500 85,500 114,504 (29,004) Economic development 6,200 6,200 17,257 (11,057) Miscellaneous 25,000 25,000 25,000 Capital outlay 148,000 148,000 381,763 (233,763) Debt service 11,375 (11,375) TOTAL EXPENDITURES 2,177,200 2,177,200 2,401,743 (224,543) EXCESS OF REVENUES OVER EXPENDITURES 180,700 180,700 68,018 (112,682) OTHER FINANCING SOURCES (USES) Sale of capital assets 9,611 9,611 Transfers out (181,200) (181,200) (205,800) (24,600) TOTAL OTHER FINANCING SOURCES (USES) (181,200) (181,200) (196,189) (14,989) NET CHANGE IN FUND BALANCES (500) (500) (128,171) (127,671) FUND BALANCES, JANUARY 1 1,563,335 1,563,335 1,563,335 FUND BALANCES, DECEMBER 31 $ 1,562,835 $ 1,562,835 $ 1,435,164 $ (127,671) The notes to the financial statements are an integral part of this statement. -13- CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF NET ASSETS PROPRIETARY FUNDS DECEMBER 31, 2007 AND 2006 Business-type Activities - Enterprise Funds Water Sewer 2007 2006 2007 2006 ASSETS CURRENT ASSETS Cash and temporary investments $ 789,125 $ 541,512 $ 1,748,626 $ 2,187,926 Receivables Accounts 57,872 66,598 88,819 98,390 Special assessments Current 1 461 328 Delinquent 540 540 Due from other funds 675,000 Inventories 8,985 8,472 Prepaid items 13,531 12,344 TOTAL CURRENT ASSETS 856,523 617,043 2,526,516 2,298,988 NONCURRENT ASSETS Special assessments receivable - deferred 117,575 138,014 59,895 68,426 Capital assets Depreciable 4,953,671 4,960,218 3,330,109 3,336,656 Less accumulated depreciation (895,165) (731,582) (953,267) (849,051) TOTAL NONCURRENT ASSETS 4,176,081 4,366,650 2,436,737 2,556,031 TOTAL ASSETS 5,032,604 4,983,693 4,963,253 4,855,019 LIABILITIES CURRENT LIABILITIES Accounts payable 13,842 7,275 863 328 Accrued salaries payable 1,172 918 1,172 918 Due to other governments 1,196 767 124 TOTAL CURRENT LIABILITIES 16,210 8,960 2,159 1,246 NONCURRENT LIABILITIES Due within one year Accrued compensated absences payable 4,108 4,180 4,108 4,180 TOTAL LIABILITIES 20,318 13,140 6,267 5,426 NET ASSETS Invested in capital assets, net of related debt 4,058,506 4,228,636 2,376,842 2,487,605 Restricted for future expansion 71,631 71,631 Unrestricted 953,780 741,917 2,508,513 2,290,357 TOTAL NET ASSETS $ 5,012,286 $ 4,970,553 $ 4,956,986 $ 4,849,593 The notes to the financial statements are an integral part of this statement. -14- Business-type Activities - Enterprise Funds - Continued Storm water Recycling Totals 2007 2006 2007 2006 2007 2006 $ 384,813 $ 336,372 $ $ $ 2,922,564 $ 3,065,810 8,521 9,443 155,212 174,431 1 789 849 1,929 675,000 8,985 8,472 13,531 12,344 393,334 345,815 849 3,777,222 3,261,846 9,175 8,351 186,645 214,791 406,244 406,244 8,690,024 8,703,118 (21,200) (4,950) (1,869,632) (1,585,583) 385,044 401,294 9,175 8,351 7,007,037 7,332,326 778,378 747,109 10,024 8,351 10,784,259 10,594,172 15,251 2,575 1,366 9,021 2,020 767 546 231 46 1,418 184 823 1,602 19,192 11,808 1,161 1,194 9,377 9,554 1,984 2,796 28,569 21,362 385,044 401,294 6,820,392 7,117,535 71,631 71,631 391,350 343,019 10,024 8,351 3,863,667 3,383,644 $ 776,394 $ 744,313 $ 10,024 $ 8,351 $ 10,755,690 $ 10,572,810 -15- CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS YEARS ENDED DECEMBER 31,2007 AND 2006 Business-type Activities - Enterprise Funds Water Sewer 2007 2006 2007 2006 OPERATING REVENUES Charges for services $ 260,190 $ 273,996 $ 290,581 $ 303,294 OPERATING EXPENSES Salaries and benefits 74,913 61,651 75,854 63,792 Supplies 21,097 18,495 1,198 4,616 Other services and charges 39,047 115,599 21,209 50,044 Utilities 5,993 1,915 2,550 1,260 MCES - disposal charges 148,132 144,137 Depreciation 167,805 151,858 108,438 99,521 TOTAL OPERATING EXPENSES 308,855 349,518 357,381 363,370 OPERATING INCOME (LOSS) (48,665) (75,522) (66,800) (60,076) NONOPERATING REVENUES (EXPENSES) Interest on investments 31,183 14,865 116,163 76,425 Special assessments 11 ,260 47,907 5,521 18,134 Hook up fees and unit charges 50,115 27,568 54,669 39,494 Miscellaneous revenue 3,000 Loss on sale of capital assets (2,160) (2,160) Interest expense (45) (55) TOTAL NONOPERATING REVENUES 90,398 93,295 174,193 133,998 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 41,733 17,773 107,393 73,922 CAPITAL CONTRIBUTIONS FROM OTHER FUNDS 390,413 152,071 CAPITAL CONTRIBUTIONS BY DEVELOPERS 95,575 88,745 CHANGE IN NET ASSETS 41,733 503,761 107,393 314,738 NET ASSETS, JANUARY 1 4,970,553 4,466,792 4,849,593 4,534,855 NET ASSETS, DECEMBER 31 $ 5,012,286 $ 4,970,553 $ 4,956,986 $ 4,849,593 The notes to the financial statements are an integral part of this statement. -16- Business-type Activities - Enterprise Funds - Continued Storm water Recycling Totals 2007 2006 2007 2006 2007 2006 $ 48,538 $ 118,750 $ $ $ 599,309 $ 696,040 11,703 11,280 162,470 136,723 126 22,421 23,111 5,709 7,766 65,965 173,409 8,543 3,175 148,132 144,137 16,250 4,950 292,493 256,329 33,788 23,996 700,024 736,884 14,750 94,754 (100,715) (40,844) 17,331 9,513 164,677 100,803 1,673 893 18,454 66,934 104,784 67,062 3,000 (4,320) (100) 17,331 9,513 1,673 893 283,595 237,699 32,081 104,267 1,673 893 182,880 196,855 297,020 839,504 109,224 293,544 32,081 510,511 1,673 893 182,880 1,329,903 744,313 233,802 8,351 7,458 10,572,810 9,242,907 $ 776,394 $ 744,313 $ 10,024 $ 8,351 $ 10,755,690 $ 10,572,810 -17- ---.- -- CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF CASH FLOWS PROPRIETARY FUNDS YEARS ENDED DECEMBER 31,2007 AND 2006 Business-type Activities - Enterprise Funds Water Sewer 2007 2006 2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 268,916 $ 260,302 $ 300,152 $ 287,917 Payments to suppliers (59,654) (149,949) (173,617) (206,004) Payments to employees (74,731) (61,350) (75,672) (63,497) NET CASH PROVIDED BY OPERATING ACTIVITIES 134,531 49,003 50,863 18,416 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Advances to other funds (675,000) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (5,685) (23,292) (5,685) (21,765) Proceeds from sale of capital assets 5,850 5,850 Hook up fees and unit charges 50,115 27,568 54,669 39,494 Special assessments received 31,619 70,148 13,840 46,095 Interest paid on bonds (45) (55) NET CASH PROVIDED BY CAPITAL AND RELATED FINANCING ACTIVITIES 81,899 74,379 68,674 63,769 CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments 31,183 15,496 116,163 79,914 NET INCREASE (DECREASE) IN CASH AND TEMPORARY INVESTMENTS 247,613 138,878 (439,300) 162,099 CASH AND TEMPORARY INVESTMENTS, JANUARY 1 541,512 402,634 2,187,926 2,025,827 CASH AND TEMPORARY INVESTMENTS, DECEMBER 31 $ 789,125 $ 541,512 $ 1,748,626 $ 2,187,926 The notes to the financial statements are an integral part of this statement. -18- Storm water 2007 $ 49,460 $ (6,661) (11,689) 31,110 Business-type Activities - Enterprise Funds - Continued Recycling Totals 2006 2007 2006 2007 2006 $ 618,528 $ 665,494 (239,932) (362,301) (162,092) (136,018) 216,504 167,175 (675,000) 117,275 $ (6,348) (11,171) $ 99,756 (11,370) (45,057) 11,700 104,784 67,062 45,459 116,243 (100) 150,573 138,148 17,331 9,912 164,677 105,322 48,441 109,668 (143,246) 410,645 336,372 226,704 3,065,810 2,655,165 $ 384,813 $ 336,372 $ $ $ 2,922,564 $ 3,065,810 -19- CITY OF CENTERVILLE, MINNESOTA STATEMENTS OF CASH FLOWS - CONTINUED PROPRIETARY FUNDS YEARS ENDED DECEMBER 31,2007 AND 2006 Business-type Activities - Enterprise Funds Water Sewer 2007 2006 2007 2006 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) $ (48,665) $ (75,522) $ (66,800) $ (60,076) Other income related to operations 3,000 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation and amortization 167,805 151,858 108,438 99,521 (Increase) decrease in assets: Accounts receivable 8,726 (16,694) 9,571 (15,377) Inventories (513) 140 Prepaid items (1,187) (333) Increase (decrease) in liabilities: Accounts payable 6,567 (13,894) 535 39 Accrued salaries 254 (75) 254 (81) Accrued compensated absences payable (72) 376 (72) 376 Due to other governments 429 (186) 124 (5,653) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 134,531 $ 49,003 $ 50,863 $ 18,416 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets contributed by other funds $ $ 390,413 $ $ 152,071 Capital assets contributed by developers $ $ 95,575 $ $ 88,745 Disposal of capital assets $ 2,160 $ $ 2,160 $ The notes to the financial statements are an integral part of this statement. -20- - I Storm water Business-type Activities - Enterprise Funds - Continued Recycling Totals 2007 2006 2007 2006 2007 2006 $ 14,750 $ 94,754 $ $ $ (100,715) $ (40,844) 3,000 16,250 4,950 292,493 256,329 922 (1,475) 19,219 (33,546) (513) 140 (1,187) (333) (872) 1,418 6,230 (12,437) 47 (22) 555 (178) (33) 131 (177) 883 46 599 (5,839) $ 31,1l0 $ 99,756 $ $ $ 216,504 $ 167,175 $ $ 297,020 $ $ $ 297,020 $ 839,504 $ $ 109,224 $ $ $ 109,224 $ 293,544 $ $ $ $ $ 4,320 $ -21- THIS PAGE IS LEFT BLANK INTENTIONALL Y CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Centerville, Minnesota (the City), operates under the "Optional Plan A" form of government as defined in the State of Minnesota statutes. Under this plan, the government of the City is directed by a Council composed of an elected Mayor and four elected Council Members. The Council exercises legislative authority and determines all matters of policy. The Council appoints personnel responsible for the proper administration of all affairs relating to the City. The City has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the primary government to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific fmancial burdens on the primary government. The City does not have any component units. The City also participates in two joint ventures which are not included in the City's fmancial statements. Descriptions and condensed financial information for these joint ventures are included later in these notes. B. Government-wide and Fund Financial Statements The government-wide fmancial statements (statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include I) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund fmancial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. -22- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Deferred revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as deferred revenue. On the modified accrual basis, receivables that will not be collected within the available period have also been reported as deferred revenue in the fund financial statements. The 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 Generalfund is the City's primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Debt Service fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. The Park fund accounts for the resources accumulated and payments made for the development and acquisition of City parks. The 2007 CSAH 14 Improvements fund accounts for the resources accumulated and payments made for the street and utility improvements started in 2007. The 2007 Development fund accounts for the resources accumulated and payments made for the street and utility improvements started in 2007. 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 Storm water fund accounts for the activities of the City's storm water collection operations. The Recyclingfund accounts for the activities of the City's recycling collection operations. -23- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Private-sector standards of accounting and fmancial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund fmancial statements to the extent that those standards do not conflict with or contradict guidance ofGASB. Governments also have the option offollowing 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 inter fund activity has been eliminated from government-wide fmancial statements. Exceptions to this general rule are charges between the City's water and sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues 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 defmition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources fIrst, then unrestricted resources as they are needed. 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 (1) above. 3. General obligations of the State of Minnesota or any of its municipalities. 4. Banker's acceptances of Unites States banks eligible for purchase by the Federal Reserve System. 5. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality, and maturing in 270 days or less. -24- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 6. Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. 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 GlC's issued by Minnesota banks. Investments for the City are reported at fair value. The City has no formal investment policy. At December 31, 2007, investments in one issuer (other than investments issued by or explicitly guaranteed by U. S. government, mutual funds, external investment pools, and other pooled investments) that represent five percent or more of the City's investments are as follows: Issuer Percent of Total Total Investments Value 25.41 % $ 449,140 28.56 504,679 46.03 813,340 99.99 % $ 1,767,159 Federal Home Loan Bank Federal National Mortgage Association Federal Home Loan Mortgage Corporation Total 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 2007. The City annually certifies delinquent water and sewer accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. Interfund Receivables and Payables Activity between funds that are representative oflending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (Le., the current portion of interfund loans) or "advances to/from other funds" (Le., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Property Taxes The 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 I 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. -25- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2007 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Taxes payable on homestead property, as defmed 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 fmancing 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 fmancial statements. Inventories and Prepaid Items All inventories are valued at cost using the frrst-inlfrrst-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 fmandal statements. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are, reported in the applicable governmental or business-type activities columns in the government-wide fmancial statements. Capital assets are defmed 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 (Le., 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 backtrending (Le., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). As the City constructs or acquires capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate. In the case of donations the City values these capital assets at the estimated fair value of the item at the date of its donation. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. -26- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful lives: Assets Useful Lives in Years Land improvements Other improvements Buildings and improvements System improvements/infrastructure Machinery and equipment Vehicles Other assets 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 permit employees to accumulate earned but unused paid time off benefits to a maximum of 176 hours. All paid time offpay 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 fmancial statements, and proprietary fund types in the fund fmancial 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 1,2003, 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. 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 fmancing sources. Premiums received on debt issuances are reported as other fmancing sources while discounts on debt issuances are reported as other fmancing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund Equity In the fund fmancial 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. -27- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Net Assets Net assets represent the difference between assets and liabilities. Net assets are displayed in three components: a. Invested in capital assets, net of related debt - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b. Restricted net assets - Consist of net assets restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c. Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt". Comparative DatalReclassifications Comparative total data for the prior year have been presented only for the individual enterprise funds in the fund financial statements in order to provide an understanding of the changes in the fmancial 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 ACCOUNT ABILITY 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 armual 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 15th, the proposed budget is presented to the Council for review. The Council holds public hearings and a fmal budget is prepared and adopted in early December. The appropriated budget is prepared by fund, function and department. The City's department heads, with the approval of the City Administrator, may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the Council. The legal level of budgetary control is the department level. Budgeted amounts are as originally adopted. -28- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - CONTINUED B. Excess of Expenditures Over Appropriations For the year ended December 31, 2007, expenditures exceeded appropriations in the following departments (the legal level of budgetary control). Amount General government Assessing Legal Public safety Police protection Fire protection Public works Recycling Culture and recreation City festival Economic development $ 165 42,688 1,668 42,050 15,208 162,773 4,885 11,057 These over expenditures were funded by lower than expected expenditures in other departments and greater than anticipated revenues. C. Deficit Fund Equity The following funds had a deficit fund balance as of December 31, 2007: Fund Amount Major Funds Park Debt Service Funds G.O. Improvement Bonds of2004A Nonmajor Funds 2006 Municipal Improvements 2009 Street & Utility Improvements $ 199,618 37,034 235,630 97,665 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 deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds (140 percent in the case of mortgage notes pledged). Authorized collateral includes the legal investments described 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. -29- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 3: DETAILED NOTES ON ALL FUNDS At year end, the City's carrying amount of deposits was $7,002,707 and the bank balance was $7,072,441. Of the bank balance, $1,551,703 was covered by federal depository insurance and $5,520,738 was covered by collateral held by the City's agent in the City's name. As of December 31, 2007, the City had the following investments that are insured or registered, or securities held by the City or its agent in the City's name. Fair Value Credit Segmented Concentration and Quality/ Time of Carrying Investment Type Ratings (1) Distribution (2) Credit Risk Amount Pooled investments Broker money market N/A N/A N/A $ 51,480 Nonpooled investments U.S. Government Agencies AAA 6 months to 1 year 11% 199,063 U.S. Government Agencies AAA 1 year - 3 years 55% 1,003,705 U.S. Government Agencies AAA greater than 3 years 31% 564,391 Total investments $ 1,818,639 1. Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk. 2. Interest rate risk is disclosed using the segmented time distribution method. N/ A Indicates not applicable or available. At year end, the Cities total cash and temporary investments as shown on the Statement of Net Assets were as follows: Carrying amount of deposits $ 7,002,707 Investments 1,818,639 Petty cash 349 Total $ 8,821,695 B. Receivables A summary of all intergovernmental receivables as of December 31,2007 is as follows: Fund Governmental activities General County $ 2,653 C. Deferred Charges Deferred charges resulted from issuance of bonds in the governmental funds and consist of issuance costs and bond discounts. -30- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED D. Deferred Revenue Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: General fund Taxes receivable Special assessments receivable Antennae lease Debt service funds Special assessments receivable Total Capital Assets Unavailable Unearned $ 70,612 12,404 $ 15,011 1,356,319 $ 1,439,335 $ 15,011 Capital asset activity for the year ended December 31, 2007 was as follows: Beginning Balance Governmental activities Capital assets not being depreciated Land Construction in progress $ 2,594,350 Total capital assets not being depreciated 2,594,350 Capital assets being depreciated Buildings Infrastructure Machinery and equipment 954,581 8,414,303 800,587 Total capital assets being depreciated 10,169,471 Less accumulated depreciation for Buildings Infrastructure Machinery and equipment (482,483) (1,549,032) (317,207) (2,348,722) Total accumulated depreciation Total capital assets being depreciated, net 7,820,749 Governmental activities capital assets, net $ 10,415,099 -31- Increases Ending Balance Decreases $ $ $ 2,594,350 1,730,567 1,730,567 1,730,567 4,324,917 368,054 1,322,635 8,414,303 813,831 97,170 (83,926) 465,224 (83,926) 10,550,769 (25,555) (328,848) (66,735) (421,138) 59,055 (508,038) (1,877 ,880) (324,887) (2,710,805) 59,055 44,086 (24,871) 7,839,964 $ 1,774.653 $ (24,871) $ 12,164,881 CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Beginning Ending Balance Increases Decreases Balance Business-type activities Capital assets being depreciated Infrastructure $ 8,433,301 $ $ $ 8,433,301 Machinery and equipment 269,817 11,370 (24,464) 256,723 Total capital assets being depreciated 8,703,118 11,370 (24,464) 8,690,024 Less accumulated depreciation for Infrastructure (1,483,603) (267,808) (1,751,411) Machinery and equipment (101,980) (24,685) 8,444 (118,221) Total accumulated depreciation (1,585,583) (292,493) 8,444 (1,869,632) Total capital assets being depreciated, net 7,117,535 (281,123) (16,020) 6,820,392 Business-type activities capital assets, net $ 7,117,535 $ (281,123) $ (16,020) $ 6,820,392 Depreciation expense was charged to functions/programs of the City as follows: Governmental activities General government Public safety Public works Culture and recreation $ 27,681 3,097 343,277 47,083 Total depreciation expense - governmental activities $ 421,138 Business-type activities Water Sewer Storm water $ 167,805 108,438 16,250 Total depreciation expense - business-type activities $ 292,493 -32- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED E. Construction commitments The City has active construction projects as of December 31, 2007. The amount spent and remaining on the contract is listed below. Spent Project to Date Backage Road $ 1,140,776 Hidden Spring Park 213,112 Old Mill Road 260,394 Total $ 1,614,282 F. Long-term Debt General Obligation Bonds Remaining Commitment $ 17,515 5,169 37,101 $ 59,785 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 [mance various improvements and will be repaid primarily from special assessments collections and tax levies. Balance Authorized Interest Issue Maturity at Description and Issued Rate Date Date Year End G.O. Improvement Bonds of2001 $ 990,000 3.50 - 4.45 % 11/01/01 02/01/13 $ 660,000 G.O. Improvement Bonds of2002 635,000 3.00 - 4.10 10/31/02 02/01/14 470,000 G.O. Improvement Bonds of2004B 2,200,000 2.25-4.50 06/01/04 02/01/20 1,970,000 G.O. Improvement Bonds of2005 827,750 3.50-4.30 04/27/05 01/01/21 745,647 G.O. Improvement Bonds of 2006A 2,700,000 3.70 - 4.30 09/01/06 03/01/22 2,700,000 G.O. Improvement Bonds of2007A 2,600,000 3.55-4.25 12/01/07 06/01/23 2,600,000 Total General Obligation Improvement Bonds $ 9.145,647 -33- -I CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 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 2008 $ 1,293,750 $ 336,924 $ 1,630,674 2009 305,354 309,583 614,937 2010 462,104 296,085 758,189 20 II 473,854 279,222 753,076 2012 495,604 261,105 756,709 2013-2017 2,849,584 990,020 3,839,604 2018-2022 3,020,397 353,903 3,374,300 2023 245,000 5,206 250,206 Total $ 9.145,647 $ 2,832.048 $ 11,977,695 Changes in Long-term Liabilities. During the year ended December 31, 2007, the following changes occurred in noncurrent liabilities: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental activities Bonds payable General obligation bonds $ 7,652,291 $ 2,580,320 $ (1,086,964) $ 9,145,647 $ 1,293,750 Compensated absences payable 31,000 53,824 (54,796) 30,028 30,028 Governmental activities long-term liabilities $ 7.683,291 $ 2,634.144 $ (1.141,760) $ 9,175,675 $ 1,323,778 Business-type activities Compensated absences payable $ 9,554 $ 11,778 $ 01,955) $ 9,377 $ 9.377 -34- CITY OF CENTER VILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED G. Interfund Transfers The following is a schedule of interfund transfers as of December 31, 2007: Transfer in Debt Service Park Other Fund Funds Fund Governmental Total Transfer out General $ 180,800 $ 25,000 $ $ 205,800 Debt Service 22,879 281 23,160 Other Governmental 163,903 163,903 Total $ 367.582 $ 25,000 $ 281 $ 392,863 . A transfer of$180,800 from the General fund to the Debt Service funds was made for debt payments. . A transfer of $25,000 from the General fund to the Park was made for park projects. . A transfer of$23,160 from the Debt Service fund and a transfer of$163,903 from Other Governmental funds to close funds. H. Advances Fromffo Other Funds The following is a schedule of interfund advances: Receivable Fund Payable Fund Amount Enterprise Sewer Sewer General Park Capital Project $ 400,000 275,000 Total $ 675,000 -35- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2007 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED I. Tax Increment Districts The City is the administering authority for the following tax increment financing district as of December 31, 2007: Authoirzing Law Type of district Tax Increment District No. 1-6 M.S. 469 Redevelopment Year established 8/24/2005 25 years Tax capacity Original CUrrent $ 10,350 47,956 Captured - retained $ 37,606 The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. J. Fund Equity Certain reservations and designations have been made in the following funds: Fund Purpose Fund balance - Reserved Debt Service General Amount Debt service on bonds issued Prep aids $ 2,441,390 13,340 $ 2,454,730 Total reserved fund balance Fund balance - Unreserved - Designated General Working capital $ 1,428,071 -36- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2007 Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF), which is a cost-sharing, multiple-employer retirement plan. The plan is established and administered in accordance with Minnesota statutes, chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by Minnesota statute, and vest after three years of credited service. The defmed retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For all PERF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for coordinated members hired after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A 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 contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available fmancial report that includes fmancial statements and required supplementary information for PERF. That report may be obtained on the Internet at www.mnpera.org, by writing to PERA at 60 Empire Drive, Suite 200, St. Paul, Minnesota 55103-2088 or by calling 651-296-7460 or 1-800-652-9026. -37- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2007 Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED B. Funding Policy Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the State legislature. The City makes annual contributions to the pension plans equal to the amount required by Minnesota statutes. PERF Basis Plan members and Coordinated Plan members were required to contribute 9.10 percent and 5.75 percent, respectively, of their annual covered salary in 2007. Contribution rates in the Coordinated Plan will increase in 2008 to 6.0 percent. The City is required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan PERF members and 6.25 percent for Coordinated Plan PERF members. Employer contribution rates for the Coordinated Plan will increase to 6.5 percent effective January 1,2008. The City's contributions to the PERF for the year ended December 31, 2007, 2006 and 2005 were $33,078, $30,189, and $26,421, respectively. The City's contributions were equal to the contractually required contributions for each year as set by Minnesota statute. Note 5: JOINT POWERS AGREEMENTS A. Centennial Fire District The Centennial Fire District (the District) was formed under the authority of Minnesota statutes 471.59 in 1985 by agreement of the member cities of CentervilIe, Lino Lakes and Circle Pines. The district was created to provide fire protection services to the residents of the member cities. The District is managed through a three tier system consisting ofa fire chief, a steering committee, and the Councils of the member cities. The fire chief is an appointed position. Each member city appoints two commissioners. One of these commissioners must be an elected official of the city. Each member city contributes funds to cover the budgeted costs of operations as determined by the commissioners. The amount of contributions required by each member is based on each city's population, number offrre calls, and assessed valuations. Contributions made by member cities for 2007 were as follows: City of Centerville City of Circle Pines City of Lino Lakes $ 96,595 133,004 513,436 13.00 % 17.90 69.10 Total $ 743,035 100.00 % Volunteer firefighters of the District are members of the Centennial Firefighter's Relief Association (the Association). The Association is a single-employer pension plan (the Plan) that operates under the provisions of Minnesota Statutes 69 and 424, as amended. It is governed by a board of six officers and trustees elected by the members of the Association for three-year terms. The ex-officio, non-voting members of the Board of trustees are two representatives from the Centennial Fire Steering Committee and the fire chief of the District. The Association issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Centennial Fire District 7741 Lake Drive, Lino Lakes, MN 55014. -38- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 5: JOINT POWERS AGREEMENTS - CONTINUED B. Centennial Lakes Police Department The Centennial Lakes Police Department (the Department) was formed under the authority if Minnesota Statutes 436.06 in 2005 by agreement of the member cities ofCenterville, Circle Pines and Lexington. The Department was created to provide police protection services to its member cities. The Department is managed through a three tier system consisting of a Governing Board, an Operations committee, and a chief of Police. The Governing Board consists of six members, two elected officials appointed by each member city. The Operations Committee is made up of the City administrators from each member city and the Chief of Police. The Chief of Police is appointed by mutual agreement of the City councils of all member cities. Annual contributions required by each member city are calculated based on complaint history, population, and staffmg formulas. Contributions made by member cities for 2007 were as follows: City of Centerville City of Circle Pines City of Lexington $ 648,744 802,459 553,973 Total $ 2,005,176 C. Summary Financial Information of the Joint powers Agreements Entities 32.35 % 40.02 27.63 100 % The contribution to the joint fire district and the joint police commission are reflected as expenditures in the City's General fund. The fire district and police commission's assets, liabilities, equity and operations are excluded from the city's [mancial statements as further explained in note IA. The following information is from the [mancial statements of the District and the Department as of December 31, 2007, the most recent audited information available at the time ofthis report. The amounts reported for the District are those presented in its government-wide financial statements. These [mancial statements are available for viewing at the Centerville City hall. Centennial Fire District Total assets T otalliabilities Total net assets Total revenue Total expenses $ 1,057,485 127,212 930,273 795,332 715,364 Centennial Lakes Police Department $ 643,622 83,855 559,767 2,127,691 1,999,205 Volunteer firefighters of the District are members ofthe 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 [mancial report that includes [mancial statements and required supplementary information. The report may be obtained by writing to the Centennial Fire District 7741 Lake Drive, Lino Lakes, MN 55014. -39- CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 6: OTHER INFORMATION A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the City carries insurance. The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT), which is a risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of any incurred but not reported claims. B. Legal Debt Margin In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of2 percent of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and, therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax increments. The market value of taxable property is $357,863,100, which leaves a debt margin of$7,157,262. The City has $745,647 outstanding against this 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 2007. -40- THIS PAGE IS LEFT BLANK INTENTIONALL Y COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF CENTERVILLE CENTERVILLE, MINNESOTA YEAR ENDED DECEMBER 31,2007 CITY OF CENTERVILLE, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2007 Special Revenue Funds Capital Projects Funds 614 412 414 Municipal Street Pedestrian Cable T.V. Total Improvement Trail Ways ASSETS Cash and temporary investments (deficits) $ 11,930 $ 11,930 $ $ 12,817 Receivables Accounts 7,191 7,191 TOTAL ASSETS $ 19,121 $ 19,121 $ $ 12,817 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ $ $ Contracts payable Accrued salaries payable 51 51 Compensated absences payable 108 108 TOTAL LIABILITIES 159 159 FUND BALANCES Umeserved Undesignated 18,962 18,962 12,817 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $ 19,121 $ 19,121 $ $ 12,817 -41- 317 TIF District 1-4 $ $ $ $ 443 Pheasant Marsh III $ $ $ $ Capital Projects Funds - Continued 446 447 CentervilIe Town Office Park Hunter's Crossing $ $ $ $ $ $ $ $ -42- 448 Hunter's Crossing 3rd Addition $ 115,245 $ 115,245 $ 115,245 $ 115,245 -I 449 2006 Municipal Improvements $ (197,187) $ (197,187) $ 891 37,552 38,443 (235,630) $ (197,187) THIS PAGE IS LEFT BLANK INTENTIONALL Y -- -~, CITY OF CENTERVILLE, MINNESOTA NONMAJOR GOVERNMENTAL FUND COMBINING BALANCE SHEET - CONTINUED DECEMBER 31, 2007 Capital Projects Funds - Continued 451 453 Total 2009 2007 Nonmajor Street & Utility Downtown Governmental Improvements Redevelopment Total Funds ASSETS Cash and temporary investments (deficits) $ (73,265) $ 128,304 $ (14,086) $ (2,156) Receivables Accounts 41,692 41,692 48,883 TOTAL ASSETS $ (73,265) $ 169,996 $ 27,606 $ 46,727 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 24,400 $ 599 $ 25,890 $ 25,890 Contracts payable 37,552 37,552 Accrued salaries payable 51 Compensated absences payable 108 TOTAL LIABILITIES 24,400 599 63,442 63,601 FUND BALANCES Unreserved Undesignated (97,665) 169,397 (35,836) (16,874) TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $ (73,265) $ 169,996 $ 27,606 $ 46,727 -43- CITY OF CENTERVILLE, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) YEAR ENDED DECEMBER 31, 2007 Special Revenue Funds Capital Projects Funds 614 412 414 Municipal Street Pedestrian Cable T.Y. Total Improvement Trail Ways REVENUES Interest on investments $ 7 $ 7 $ 4,860 $ 7 Miscellaneous Refunds and reimbursements 7,191 7,191 TOTAL REVENUES 7,198 7,198 4,860 7 EXPENDITURES Current Public works Other services and charges Culture and recreation Personal services 7,008 7,008 Supplies 499 499 Other services and charges 115 115 Capital outlay Public works Culture and recreation 69 69 Economic development TOTAL EXPENDITURES 7,691 7,691 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (493) (493) 4,860 7 OTHER FINANCING SOURCES (USES) Transfers in Bond proceeds Transfers out (109,294) TOTAL OTHER FINANCING SOURCES (USES) (109,294) NET CHANGE IN FUND BALANCES (493) (493) (104,434) 7 FUND BALANCES, JANUARY 1 19,455 19,455 104,434 12,810 FUND BALANCES (DEFICITS), DECEMBER 31 $ 18,962 $ 18,962 $ $ 12,817 -44- Capital Projects Funds - Continued 317 443 446 447 448 449 Centerville Hunter's 2006 TIP Pheasant Hunter's Town Office Crossing Municipal District 1-4 Marsh III Crossing Park 3rd Addition Improvements $ 8 $ 798 $ 1,386 $ $ 8,639 $ 6,756 8 798 1,386 8,639 6,756 7,615 2,879 42,035 324,795 15,494 15,494 2,879 42,035 332,410 (15,486) (2,081) 1,386 (33,396) (325,654) 281 (46,172) (8,437) 281 (46,172) (8,437) (15,486) (1,800) (44,786) (8,437) (33,396) (325,654) 15,486 1,800 44,786 8,437 148,641 90,024 $ $ $ $ $ 115,245 $ (235,630) -45- THIS PAGE IS LEFT BLANK INTENTIONALL Y CITY OF CENTERVILLE, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - CONTINUED YEAR ENDED DECEMBER 31, 2007 Capital Projects Funds - Continued 451 453 Total 2009 2007 Nonmajor Street & Utility Downtown Governmental Improvements Redevelopment Total Funds REVENUES Interest on investments $ $ 247 $ 22,701 $ 22,708 Miscellaneous Refunds and reimbursements 41,692 41,692 48,883 TOTAL REVENUES 41,939 64,393 71,591 EXPENDITURES Current Public works Other services and charges 7,615 7,615 Culture and recreation Personal services 7,008 Supplies 499 Other services and charges 115 Capital outlay Public works 97,665 123,542 590,916 590,916 Culture and recreation 69 Economic development 15,494 15,494 TOTAL EXPENDITURES 97,665 123,542 614,025 621,716 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (97,665) (81,603) (549,632) (550,125) OTHER FINANCING SOURCES (USES) Transfers in 281 281 Bond proceeds 251,000 251,000 251,000 Transfers out (163,903) (163,903) TOTAL OTHER FINANCING SOURCES (USES) 251,000 87,378 87,378 NET CHANGE IN FUND BALANCES (97,665) 169,397 (462,254) (462,747) FUND BALANCES, JANUARY 1 426,418 445,873 FUND BALANCES (DEFICITS), DECEMBER 31 $ (97,665) $ 169,397 $ (35,836) $ (16,874) -46. CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31,2007 (With comparative actual amounts for the year ended December 3 I, 2006) 2007 2006 Variance with Budgeted Amounts Final Budget - Actual Positive Actual Original Final Amounts (Negative) Amounts REVENUES Taxes General property $ 1,961,900 $ 1,961,900 $ 1,813,923 $ (147,977) $ 1,738,940 Gambling 1,724 1,724 5,642 Total 1,961,900 1,961,900 1,815,647 (146,253) 1,744,582 Licenses and permits Business 14,000 14,000 21,807 7,807 18,794 Nonbusiness 148,000 148,000 199,048 51,048 120,430 Total 162,000 162,000 220,855 58,855 139,224 Intergovernmental State Local government aid 23,088 23,088 23,088 21,864 Property tax credits 66,034 66,034 State grants aid 11,333 11,333 1,685 Police aid 33,376 33,376 26,748 2% Fire relief aid 93,912 93,912 137,100 43,188 159,599 County - other 15,659 15,659 12,477 Total II 7,000 117,000 286,590 169,590 222,373 Charges for services General government 2,054 2,054 2,195 Other 174 174 298 Total 2,228 2,228 2,493 Fines and forfeitures 40,000 40,000 37,529 (2,471) 39,190 Special assessments 1,597 Interest on investments 58,000 58,000 60,501 2,501 62,083 Miscellaneous Refunds and reimbursements 4,000 4,000 43,659 39,659 2,222 Other 15,000 15,000 2,752 (12,248) 28,173 Total 19,000 19,000 46,4 I 1 27,411 30,395 TOTAL REVENUES 2,357,900 2,357,900 2,469,761 111,861 2,241,937 -47- ---- ------ ----_._---~--_._~ CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED YEAR ENDED DECEMBER 31, 2007 (With comparative actual amounts for the year ended December 31, 2006) 2007 2006 Variance with Budgeted Amounts Final Budget- Actual Positive Actual Original Final Amounts (Negative) Amounts EXPENDITURES Current General government Mayor and Council Personal services $ 32,500 $ 32,500 $ 31,784 $ 716 $ 19,483 Other services and charges 2,500 2,500 259 2,241 746 Total 35,000 35,000 32,043 2,957 20,229 Elections Personal services 333 Supplies 6,806 Total 7,139 Planning and zoning Other services and charges 20,000 20,000 19,166 834 11,940 Administration Personal services 283,000 283,000 278,952 4,048 251,279 Supplies 10,000 10,000 7,672 2,328 5,659 Other services and charges 102,000 102,000 65,189 36,811 64,976 Total 395,000 395,000 351,813 43,187 321,914 Assessing Other services and charges 18,000 18,000 18,165 ( 165) 19,180 Legal Other services and charges 73,000 73,000 115,688 (42,688) 88,717 General government building Personal services 2,200 2,200 1,893 307 1,912 Supplies 300 300 328 (28) 237 Other services and charges 37,500 37,500 22,928 14,572 25,999 Total 40,000 40,000 25,149 14,851 28,148 Total general government 581,000 581,000 562,024 18,976 497,267 -48- CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED YEAR ENDED DECEMBER 31,2007 (With comparative actual amounts for the year ended December 31, 2006) 2007 2006 Variance with Budgeted Amounts Final Budget - Actual Positive Actual Original Final Amounts (Negative) Amounts EXPENDITURES - CONTINUED Current - Continued Public safety Police protection Other services and charges $ 649,000 $ 649,000 $ 650,668 $ (1,668) $ 579,335 Fire protection Remittance to relief association 95,000 95,000 137,100 (42,100) 157,933 Other services and charges 99,000 99,000 98,950 50 90,987 Total 194,000 194,000 236,050 (42,050) 248,920 Building inspection Personal services 151,000 151,000 131,946 19,054 151,615 Supplies 2,000 2,000 3,402 (1,402) 2,389 Other services and charges 14,000 14,000 10,348 3,652 11,145 Total 167,000 167,000 145,696 21,304 165,149 Civil defense Other services and charges 4,000 4,000 892 3,108 862 Animal control Other services and charges 2,000 2,000 928 1,072 1,532 Total public safety 1,016,000 1,016,000 1,034,234 (18,234) 995,798 Public works Streets Personal services 127,000 127,000 115,939 1l,061 113,802 Supplies 13,000 13 ,000 12,941 59 9,465 Other services and charges 145,000 145,000 107,057 37,943 66,653 Total 285,000 285,000 235,937 49,063 189,920 Recycling Personal services 3,600 3,600 4,266 (666) 3,340 Supplies 400 400 50 350 Other services and charges 1,500 1,500 16,392 (14,892) 6,439 Total 5,500 5,500 20,708 (15,208) 9,779 Engineering services Other services and charges 25,000 25,000 23,941 1,059 14,943 Total public works 315,500 315,500 280,586 34,914 214,642 -49- CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED YEAR ENDED DECEMBER 31,2007 (With comparative actual amounts for the year ended December 31, 2006) 2007 2006 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 $ 28,100 $ 28,100 $ 24,780 $ 3,320 $ 21,938 Supplies 4,900 4,900 7,461 (2,561 ) 6,920 Other services and charges 52,500 52,500 52,378 122 43,016 Total parks and recreation 85,500 85,500 84,619 881 71,874 City Festival Other services and charges 25,000 25,000 29,885 (4,885) 19,960 Total culture and recreation 110,500 110,500 114,504 (4,004) 91,834 Economic development Other services and charges 6,200 6,200 17,257 (11,057) 169,273 Total current expenditures 2,029,200 2,029,200 2,008,605 20,595 1,968,814 Capital outlay General government 5,000 5,000 4,285 715 16,681 Public safety 5,000 5,000 5,325 (325) 1,306 Public works 113,000 113,000 372,153 (259,153) 94,017 Culture and recreation 25,000 25,000 25,000 Economic development 765 Total capital outlay 148,000 148,000 381,763 (233,763) 112,769 Debt service Principal 11,375 (11,375) 5,775 Interest and other 100 Total debt service 11,375 (11,375) 5,875 TOTAL EXPENDITURES 2, I 77,200 2,177,200 2,401,743 (224,543) 2,087,458 EXCESS OF REVENUES OVER EXPENDITURES 180,700 180,700 68,018 (112,682) 154,479 -50- THIS PAGE IS LEFT BLANK INTENTIONALL Y CITY OF CENTERVILLE, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED YEAR ENDED DECEMBER 31, 2007 (With comparative actual amounts for the year ended December 31, 2006) 2007 2006 Variance with Budgeted Amounts Final Budget - Actual Positive Actual Original Final Amounts (Negative) Amounts OTHER FINANCING SOURCES (USES) Sale of capital assets $ $ $ 9,611 $ 9,611 $ Transfers in 65,400 Transfers out (181,200) (181,200) (205,800) (24,600) (205,900) TOTAL OTHER FINANCING SOURCES (USES) (181,200) (181,200) (196, I 89) (14,989) (140,500) NET CHANGE IN FUND BALANCES (500) (500) (128,171) (127,671) 13,979 FUND BALANCES, JANUARY 1 1,563,335 1,563,335 1,563,335 1,549,356 FUND BALANCES, DECEMBER 3 I $ 1,562,835 $ 1 ,562,835 $ 1,435,164 $ (127,671) $ 1,563,335 -51- CITY OF CENTERVILLE, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31,2007 306 308 309 Joint Police Mound 21st Avenue Station Trail Improvements 2005A ASSETS Cash and temporary investments (deficits) $ $ 44,898 $ 42,649 Receivables Special assessments Current Delinquent Deferred 4,991 Prepaid items 6,247 TOTAL ASSETS $ $ 49,889 $ 48,896 LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable $ $ $ Deferred revenue 4,991 TOTAL LIABILITIES 4,991 FUND BALANCES (DEFICITS) Reserved for debt service 44,898 42,649 Reserved for prepaid items 6,247 Unreserved Undesignated TOTAL FUND BALANCES (DEFICITS) 44,898 48,896 TOTAL LIABILITIES AND FUND BALANCES $ $ 49,889 $ 48,896 -52- 312 324 336 327 342 345 G.O. G.O. G.O. G.O. G.O. Temporary Improvement Improvement Improvement Improvement Improvement Bonds of Parkview Bonds of Bonds of Bonds of Bonds of 2004B Development 2000 2001 2002 2003 $ 599,555 $ 4,971 $ 74,358 $ 426,321 $ 761,871 $ 3,498 11,981 392 406,385 1,950 10 ,211 66,260 $ $ 79,969 $ 1,018,313 $ 761,871 $ $ 6,921 74,358 426,321 $ $ $ $ $ 406,777 1,950 73,995 406,777 1,950 73,995 611,536 4,971 761,871 74,358 426,321 611,536 74,358 761,871 5,974 426,321 4,971 $ 1,018,313 $ $ 761,871 $ $ 6,921 74,358 426,321 -53- $ 5,974 $ 79,969 CITY OF CENTERVILLE, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET - CONTINUED DECEMBER 31, 2007 346 348 349 G.O. G.O. G.O. Improvement Improvement Improvement Bonds of Bonds of Bonds of 2004A 2006A 2007A ASSETS Cash and temporary investments (deficits) $ (37,034) $ 273,798 $ 199,014 Receivables Special assessments Current Delinquent 7,389 2,396 Deferred 108,983 499,547 250,291 Prepaid items TOTAL ASSETS $ 79,338 $ 775,741 $ 449,305 LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable $ $ $ 4,000 Deferred revenue 116,372 501,943 250,291 TOTAL LIABILITIES 116,372 501,943 254,291 FUND BALANCES (DEFICITS) Reserved for debt service 273,798 195,014 Reserved for prepaid items Unreserved Undesignated (37,034) TOTAL FUND BALANCES (DEFICITS) (37,034) 273,798 195,014 TOTAL LIABILITIES AND FUND BALANCES $ 79,338 $ 775,741 $ 449,305 -54- Total Debt Service Funds $ 2,393,899 11,981 20,388 1,338,407 6,247 $ 3,770,922 $ 4,000 1,356,319 1,360,319 2,441,390 6,247 (37,034) 2,410,603 $ 3,770,922 -55- CITY OF CENTERVILLE, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) YEAR ENDED DECEMBER 31,2007 306 308 309 Joint Police Mound 21st Avenue Station Trail Improvements 2005A REVENUES Special assessments $ $ 1,091 $ Refunds and reimbursements Interest on investments 185 1,603 TOTAL REVENUES 185 2,694 EXPENDITURES Capital outlay (19,680) Debt service Principal 41,964 Interest and other 30,061 TOTAL EXPENDITURES 52,345 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 185 2,694 (52,345) OTHER FINANCING SOURCES (USES) Transfers in 78,800 Bonds issued (19,680) Transfers out (22,879) TOTAL OTHER FINANCING SOURCES (USES) (22,879) 59,120 NET CHANGE IN FUND BALANCES (22,694) 2,694 6,775 FUND BALANCES (DEFICITS), JANUARY 1 22,694 42,204 42,121 FUND BALANCES (DEFICITS), DECEMBER 31 $ $ 44,898 $ 48,896 -56- 312 324 336 327 342 345 G.O. G.O. G.O. G.O. G.O. Temporary Improvement Improvement Improvement Improvement Improvement Bonds of Parkview Bonds of Bonds of Bonds of Bonds of 2004B Development 2000 2001 2002 2003 $ 73,331 $ 2,606 $ 9,620 $ $ $ 29,340 17,053 3,495 23,407 39,672 1,432 90,384 2,606 13,115 23,407 39,672 30,772 120,000 80,706 90,000 29,168 55,000 18,246 200,706 119,168 73,246 (110,322) 2,606 13,115 (95,761) (33,574) 30,772 242,610 (281 ) 242,610 (281 ) 132,288 2,606 13,115 (95,761) (33,855) 30,772 479,248 2,365 61,243 522,082 795,726 (24,798) $ 611,536 $ 4,971 $ 74,358 $ 426,321 $ 761,871 $ 5,974 -57- CITY OF CENTERVILLE, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - CONTINUED YEAR ENDED DECEMBER 31, 2007 346 348 349 G.O. G.O. G.O. Improvement Improvement Improvement Bonds of Bonds of Bonds of 2004A 2006A 2007 A REVENUES Special assessments $ 20,065 $ 119,012 $ 37,690 Refimds and reimbursements 78,492 Interest on investments 14,282 7,136 391 TOTAL REVENUES 34,347 204,640 38,081 EXPENDITURES Capital outlay Debt service Principal 780,000 Interest and other 7,256 109,414 4,067 TOTAL EXPENDITURES 787,256 109,414 4,067 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (752,909) 95,226 34,014 OTHER FINANCING SOURCES Transfers in 46,172 Bonds issued 161,000 Transfers out TOTAL OTHER FINANCING SOURCES 46,172 161,000 NET CHANGE IN FUND BALANCES (706,737) 95,226 195,014 FUND BALANCES (DEFICITS), JANUARY 1 669,703 178,572 FUND BALANCES (DEFICITS), DECEMBER 3 I $ (37,034) $ 273,798 $ 195,014 -58- Total Debt Service Funds $ 292,755 78,492 108,656 479,903 (19,680) 1,086,964 278,918 1,346,202 (866,299) 367,582 141,320 (23,160) 485,742 (380,557) 2;791,160 $ 2,410,603 -59- CITY OF CENTERVILLE, MINNESOTA SUMMARY FINANCIAL REPORT REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTAL FUNDS YEARS ENDED DECEMBER 31, 2007 AND 2006 Percent Total Increase 2007 2006 (Decrease) REVENUES Taxes $ 1,815,647 $ 1,765,641 2.83 % Licenses and pennits 220,855 139,224 58.63 Intergovernmental 286,590 573,961 (50.07) Charges for services 2,228 2,493 (10.63) Fines and forfeitures 37,529 39,190 (4.24) Special assessments 292,755 420,832 (30.43) Interest on investments 195,859 210,512 (6.96) Miscellaneous 212,295 326,032 (34.89) TOTAL REVENUES $ 3,063,758 $ 3,477,885 (11.91) % Per Capita $ 802.03 $ 882.71 (9.14) EXPENDITURES Current General government $ 562,024 $ 497,267 13.02 % Public safety 1,034,234 995,798 3.86 Public works 288,201 215,021 34.03 Culture and recreation 376,863 95,694 293.82 Economic development 17,257 169,273 (89.81) Miscellaneous 19,960 (100.00) Capital outlay General government 4,285 16,681 (74.31) Public safety (14,355) 1,306 (1,199.16) Public works 1,869,018 2,591,421 (27.88) Culture and recreation 74,457 591,814 (87.42) Economic development 15,494 228,791 (93.23) Debt service Principal 1,098,339 1,106,234 (0.71 ) Interest and other charges 278,918 178,356 56.38 TOTAL EXPENDITURES $ 5,604,735 $ 6,707,616 (16.44) % Per Capita $ 1,467.21 $ 1,702.44 (13.82) Total Long-tenn Indebtedness $ 9,145,647 $ 7,652,291 19.52 % Per Capita 2,394.15 1,942.21 23.27 General Fund Balance - December 31 $ 1,435,164 $ 1,563,335 (8.20) % Per Capita 375.70 396.79 (5.32) The purpose of this report is to provide a summary of financial infonnation concerning the City of CentervilIe to interested citizens. The complete financial statements may be examined at City Hall, 1880 Main St, CentervilIe, MN 55038. Questions about this report should be directed to John Meyer, Finance Director at (651) 429-3232. -60- OTHER REPORTS CITY OF CENTERVILLE CENTERVILLE, MINNESOTA YEAR ENDED DECEMBER 31,2007 THIS PAGE IS LEFT BLANK INTENTIONALL Y Grandview 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 of Centerville, Minnesota (the City), as of and for the year ended December 31, 2007, which collectively comprise the City's basic financial statements and have issued our report thereon dated May 29,2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Minnesota Office of the State Auditor pursuant to Minnesota statute, section 6.65. Accordingly, the audit included such tests ofthe accounting records and such other auditing procedures, as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers seven main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, tax increment fmancing, and miscellaneous city provisions. Our study included all of the listed categories. The results of our tests indicate that for the items tested, the City complied with the material terms and conditions of applicable legal provisions. This report is intended solely for the information and use of the Council, management, 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. May 29, 2008 Minneapolis, Minnesota ahk<UJ. {~)Uf ABDO, EICK & MEYERS, LLP Certified Public Accountants -61- 952.835.9090 . Fax 952.835.3261 www.aemcpas.com 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 fmancial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Centerville, Minnesota (the City), as of and for the year ended December 31,2007 which collectively comprise the City's basic financial statements and have issued our report thereon dated May 29,2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. In planning and performing our audit of the fmancial statements of the City as of and for the year ended December 31,2007, in accordance with auditing standards generally accepted in the United States of America, we consider the City's internal control over fmancial reporting as a basis of designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness ofthe City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report fmancial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the City's fmancial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider fmdings 2007-1 and 2007-2 described in the accompanying schedule of fmdings and responses to be significant deficiencies in internal control over financial reporting. A material weakness is a significant deficiency, or combination of significant deficiencies, that result in more than a remote likelihood that a material misstatement of the fmancial statements will not be prevented or detected by the City's internal control over fmancial reporting. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we do not consider any of the above significant deficiencies to be material weaknesses. -62- 952.835.9090 . Fax 952.835.3261 www.aemcpas.com Page Two 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. May 29,2008 Minneapolis, Minnesota 1 <Ltrr!tW ., ~)Ltf ABDO, EICK & MEYERS, LLP Certified Public Accountants -63- 952.835.9090 . Fax 952.835.3261 www.aemcpas.com Finding 2007-1 CITY OF CENTERVILLE, MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES DECEMBER 31,2007 Description Segregation of Duties over Utility Billing and Investment transaction cycles Condition: During our audit we reviewed procedures over cash receipts, cash disbursements, payroll, utility billing and investments. The City was found to have limited segregation of duties the transaction cycles relating to utility billing and investments. Criteria: There are four general categories of duties: authorization, custody, record keeping and reconciliation. In an ideal system, different employees perform each of these four major functions. In other words, no one person has control of two or more of these responsibilities. Cause: As a result of the limited number of staff, in the utility billing cycle, the accounting clerk performs duties or has custody of assets in two or more categories of duties. In the investment cycle, the finance director has responsibility over all duties. Effect: The effectiveness of the internal control system relies on enforcement by management. The effect of deficiencies in segregation of duties and internal controls can result in undetected errors or misappropriation of assets of the City. Recommendation: While we recognize the number of staff is not large enough to eliminate this deficiency, we recommend that the City evaluate the current procedures and segregate duties where possible and implement any compensating controls. Compensating controls could consist of additional monitoring and review, such as approving all adjustments with utility billing, review of utility billing registers, and review of investment statements prior to the [mance director receiving them. Weare aware some compensating controls are in place; however, it is important that the Council is aware of this condition and monitor all financial information. Management Response: Management has initiated changes in the investment procedures to ensure that there is separation between initiation and authorization and that the Finance Director only has authority to move funds between existing accounts. Management will add procedures over utility billing to ensure that all adjustments are approved and that posting of billing is reviewed by someone other than the accounting clerk. -64- Finding 2007-2 CITY OF CENTERVILLE, MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES - CONTINUED DECEMBER 31,2007 Description Preparation of Financial Statements Condition: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Recent auditing standards require auditors to communicate this situation to the Council as an internal control deficiency. Ultimately, it is management's responsibility to provide for the preparation of your statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. It is our responsibility to inform you that this deficiency could result in a material misstatement to the [mancial statements that could have been prevented or detected by your management. Essentially, the auditors can not be part of your internal control process. Criteria: Internal controls should be in place to provide reasonable assurance over [mancial reporting. Cause: From a practical standpoint we do both for you at the same time in connection with our audit. This is not unusual for us to do with an organization of your size. Effect: The effectiveness of the internal control system relies on enforcement by management. The effect of deficiencies in internal controls can result in undetected errors in financial reporting. Recommendation: It is your responsibility to make the ultimate decision to accept this degree of risk associated with this condition because of cost or other considerations. As in prior years, we have instructed management to review a draft of the auditor prepared financials in detail for their accuracy; we have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification of disclosure in your statements. We are satisfied that the appropriate steps have been taken to provide you with the completed financial statements. While the City is reviewing the financial statements we recommend that a disclosure checklist be utilized to ensure all required disclosures are presented and the City should agree its [mandaI software to the numbers reported in the [mancial statements. Management Response: For now, the City's management accepts the degree of risk associated with this condition and thoroughly reviews a draft of the [mancial statements. -65- "', P'~1 . <'-.,'1.>........1 ).f' .... P'Jtervi{{e 'Esta6fisfied 1857 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF CENTERVILLE 1880 :Main Street, Centervi((e, :M!N SS038 6.51-429-3232or'1'aJ(651-429-8629 RESOLUTION #08-0_ A RESOLUTION ACCEPTING BID FOR 2008 STREET SEAL COAT PROJECT WHEREAS, pursuant to an advertisement for bids for the 2008 Street Seal Coat Project: NAME OF BIDDER Allied Blacktop Company Pearson Brothers, Inc. AMOUNT OF BID $104,975.00 $157,250.00 AND WHEREAS, it appears that Allied Blacktop Company, Maple Grove Minnesota, is the lowest responsible bidder. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CENTERVILLE, MINNESOTA: 1. The Mayor and Clerk are hereby authorized and directed to enter into a contract with Allied Blacktop Company in the name of the City of Centerville for the aforementioned improvement according to the plans and specifications therefore approved by the Council and on file with the City Clerk. 2. The City Clerk is hereby authorized to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Adopted by the City Council this _ day of June, 2008. Mary Capra, Mayor Attest: Teresa Bender, Clerk 23 2335 HighwilY ,6 W St. Paul, MN 55113 Tel 651-636-4600 Fax 651.636.1311 www.bonestroo.com June 17, 2008 . Bonestroo Honorable Mayor and City Council City of Centerville 1880 Main Street Centerville, MN 55038-9794 Re: 2008 Street Seal Coat Project Project No. 000616-08166-0 Bid Results Dear Honorable Mayor and City Council: Bids were opened for the Project stated above on Monday, June 16, 2008 at 10 A.M. Transmitted herewith is a copy of the Bid Tabulation for your information and file. Copies will also be distributed to each Bidder once the Project has been awarded. There were a total of 2 Bids. The following summarizes the results of the Bids received: Low #2 Contractor Allied Blacktop Company Pearson Bros., Inc. Total Base Bid $104,975 $157,250 The low Bidder on the Project was Allied Blacktop Company with a Total Base Bid Amount of $104,975. This compares to the Engineer's Estimate of $98,525. These Bids have been reviewed and found to be in order. If the City Council wishes to award the Project to the low Bidder, then Allied Blacktop Company should be awarded the Project on the Total Base Bid Amount of $104,975. Should you have any questions, please feel free to contact me at (651) 604-4709. Sincerely, BONESTROO ~!k-' Mark R. Statz, P .E. Enclosure 51. Pilul 51. Cloud Rochester MilwaukPf' Chicago Engineers Arrh IlPr!I P:annprs 24 o e #1 a3 t; ~ ~ .\:l .\:l i:; ~ t el .6- ~ "'" - "1::S ~ .~ "- ~ ~ ~ ~ ...... <>.:~ ~ . ti C!: .~ ~\\.~' ~ .~ 'i ~'~.~ l:.ii l\i !), !'!" ::::E~ <;> l8 ;;0 o o.b \D o 8 ..!!! ~ ~ .... u '0 u ci 2 tl '" 'e- o.. '-' tV ~ ~ ci. o ~ Z '" ! 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E 02 U lJ: g.<{ ~.c ~~ "" -0"" ",0 .- '" ~O $ "" '" '" 2 ~..n\D-5E ~ ~ g .e Q) 00 _ V"I ~ ~ ~ ~ <i .~ -g -a~~~~~~ ~:e:e~$~~ ~ ~ j;-~ .~~ ~ "Ot-:S.g' 0.. g, ~ ~ v:; ~~ v <1: "' "C c: ~ "C <1: ~ ~ "C "0 <{ "0 c: "' '" E "' z g jg c: o U Ul x .-: lD o l8 ,.... CD o (t) ~ 25 I- I DRAFT CITY OF CENTERVILLE ANOKA COUNTY, MINNESOTA ORDINANCE # SECOND SERIES AN ORDINANCE AMENDING CHAPTER 51 OF THE CENTERVILLE CITY CODE BY AMENDING SECTION 51.08 RELATING TO MUNICIPAL SEWER AND WATER SERVICE THE CITY OF CENTERVILLE ORDAINS: Section 1. Code Section 51.08 (C) shall be amended to read as follows: (C) All property served by private water and sewer systems must connect to public sewer and water not later than 12-31-2017. Section 3. Effective Date. This ordinance shall be effective immediately upon its passage and publication according to law. PASSED AND DULY ADOPTED this _ day of Council of the City of Centerville. , 2008 by the City CITY OF CENTERVILLE BY: Mary Capra, Mayor ATTEST: Teresa Bender, City Clerk [Old Section (C): "Within 12 months after the public sanitary sewer system or water system is extended to serve property after 1-1-2006, all property served by private water and sewer systems must connect to public sewer and water, or if it is available on the effective date of this section, not later than 12-31-2012."] 26 2335 Highway 36 W 51. PilUI, MN 55113 Tel 651-636-4600 Fax 651-636-1311 Iwvw.bonestroo.com June 18, 2008 -#- Bonestroo Dallas Larson Administrator City of Centerville 1880 Main Street Centerville, MN 55038 Re: Hidden Spring Park Shoreline Restoration City of Centerville Bonestroo File No.: 000616-07155-0 Dear Dallas: The Parks and Recreation Board, consulting with Mr. Gregg Thompson has now finalized their preferred scope of work for the shoreline restoration in Hidden Spring Park. They have chosen to use Natural Shore Technologies (NST) as the contractor to construct the improvements. We have attached NST's original proposal along with several email correspondences modifying that proposal based on the suggestions of the Parks Board and Mr. Thompson. Also attached is an email correspondence from Mr. Thompson acknowledging his approval of the final scope and his willingness to oversee the work. It is our understanding that Mr. Thompson will be accepting responsibility for the installation and performance of his modified design. At this time, if the City is ready to move forward with the work, you could contact Natural Shore Technologies to give them the go-ahead. Bonestroo understands that as long as the scope of work remains within the limits of the agreed-upon final proposal, that we will be responsible for a specified cost in the amount of $24,768, as further outlined in the attached correspondence. Bonestroo has not designed this work and will not be overseeing the installation of this work. Therefore we cannot assume any liability for the performance of the design or the quality of the work, respectively. The coordination we have provided and the specific financial payment we will make constitutes our total and final commitment to the Hidden Spring Park Shoreland Restoration. We would like to be certain that we are in full agreement with the City regarding the process outlined here for moving forward with this project. Please confirm your concurrence at your earliest convenience. 51. Paul 51 Cloud Rochester Milwaukee Chicago [ ngmeerlnq Pldnnlng Innovation 27 City of CenteNiJ/e Hidden Spring Park Page 2 6118108 Thank you for your continued cooperation as work towards our common goal of establishing a working shoreline improvement project. Sincerely, BONESTROO ~/.J?/- Mark Statz, PE City Engineer 651-604-4709 ~ftt~ Lee M. Mann, PE Principal 651-604-4850 attachments: Natural Shore Technologies Original Proposal Email Correspondence from Natural Shore revising scope based on Parks Board Recomm. Email Correspondence from Gregg Thompson concurring with work scope copy: Gregg Thompson - Association of Metro SWCDs Paul Palzer - Public Works Director file 28 ~,~ ,~~ '/ \ -6275 FagenkoptRoad, Maple Flain, MN 55,59 Natural Shore Technologies, Inc. www.NaturaIShore.com 612-707;-7581 27 May 2008 RE: Centerville lake Project Bid Hello Mark- Below is a breakdown for the Centerville lake Park Shoreland Restoration Project. As we discussed with Gregg on site, it makes sense to conduct the restoration during summer low water. The rock gabions should be set approximately 12" below the lake bottom substrate. In order to do this, it would be most efficient to have the substrate exposed when conducting this excavation. I also talked to Gregg about using gab ions that are 3'x3' in dimension. This would allow for stability and also allow a portion of the gabion to be set above the NWL. Plants associated with the restoration will have ample time to establish. The quoted price is for 220' of shoreland. We have itemized a list of materials that we typically use in projects like these. We have also included maintenance in the bid - if you would like for us to monitor and weed the site. Project Elements Project Management, Mobilization Site preparation, excavation, soil, gabion placement Plants and seed Erosion Control Materials - gabion boxes, rock, biologs, fabric Maintenance TOTAL = $2,000 $6,540 $3,193.00 $14,635.00 $960.00 $27,328.00 29 List of Materials and Services Erosion control blanket - NAG C-350, NAG SC150-BN Rock - limestone - 3" to 6" - 73 CY Gabion baskets - 3' x 3' Soil (to fill behind baskets) - 30 CY Biologs - 16" heavy duty #9 Plant - 3" container (these do much better than 2" in this situation) Custom native plant seed mix for behind the gabions - for quick cover - plants will be planted through EC blanket. Maintenance - performed by college graduates trained in ecological restoration Another advantage with using our company is that Rob Langer, a co-owner of Natural Shores Inc., will be on site at all steps of the project guiding the installation. Our company prides itself in specializing with all aspects of shoreland restoration. We are the only company in Minnesota that focuses on this sort of ecological restoration. Thanks again for the opportunity to work with you. Please call if you have any questions concerning this bid. Best Regards, William M. Bartodziej Restoration Ecologist, M.S. 30 Statz. Mark R From: Sent: 0: Cc: Subject: bill.b [bill.b@naturalshore.com] Tuesday, June 10, 2008 11 :52 AM Statz, Mark R haley.e@naturalshore.com Re: Centerville bid letter Hi Mark- Per our discussion, I re-worked the numbers to include 2'x2' gabions, 33 C'( of 3"-6" limestone rock, and the work would be conducted in late June. Our original bid was $27,328.00, and our new bid is $24,768.00 to include the above mentioned materials and timeline. The 2'x2' gabions are a special order product, and the supplier is stating that it will take 2 weeks for these materials to be fabricated and delivered. As we stated earlier, we recommend waiting for the water levels to go down in order to place the gabions l' into the substrate. We will agree to do the work at existing water levels, but cannot guarantee that they will be set into the substrate at this l' level. This bid number does not include any repair of the existing turf leading up to the buffer area. We hope that the utility land adjacent to the project site could be used as a staging area to minimize disturbance. If this could be worked out by the city or you, it would really help with logistics. We also want to be clear that this is not our restoration design, and will not be held liable for project failure at any time. Best regards, William M. Bartodziej Restoration Ecologist NST, Inc. 31 · ..15.... . v. "- Statz, Mark R From: Gregg Thompson [gregg@metroswcd.org) Sent: Monday, June 16, 2008 1 :59 PM To: Statz, Mark R Cc: McDowell, Jeff J; Smyth, John R; Rautmann, Mike T; Tufte, Erling A.; Mann, Lee M Subject: Re: Centerville Mark and all, Thanks for the emaH. I am writing to acknowledge that I understand Natural Shore's proposal and the modifications suggested by the Parks Board. I support the final scope of the work identified for this shoreland project. Also, if I am given at least three working-days notice, I should be able to adjust my schedule to be on-site during the bulk of the installation process. Thanks, Gregg Gregg Thompson Urban Conservation Specialist Association of Metropolitan Soil & Water Conservation Districts (763) 286-6985 (cell) gregg@metroswcd.org _m_ Original Message ----- From: Statz, Mark R To: gregg@metroswcd.org Cc: McDowell, Jeff J ; Smyth, John R ; Raulmann, MiI~e" ; Tufte, Erling A. ; Mann, Lee M Sent: Tuesday, June 10, 2008 1 :10 PM Subject: Centerville Gregg, It appears as though the City will be looking to utilize Natural Shore Technologies to implement your design in Centerville. Their original proposal is attached along with an email identifying modifications to that proposal as requested by the Parks Board. It would be good if we could get a response, in writing (email is fine), from you, acknowledging that you understand Natural Shore's proposal, the modifications suggested by the Parks Board and that you support the final scope of the work. Mark Statz, PE Associate Tel 651-604-4709 Cell 651-775-5126 ma rk.statz@bonestroo.com .. Bonestroo 2335 Highway 36 W 6/1812008 32 RABIES VACCINATION CERTIFICATE NASPHV Form 5' PRINT - use ballpoint pen or type First t Male Female Neutered 112 VAc,C~T,Efva lL() PRODUCER: Month Day Year VACCINATION EXPllj ~,~ 33 DATE VACCI , ATED: ,m Year Month Day VACCINATION EXPI(j ~.~ RABIES V ACCINAl"ION CERTIFICATE NA5PHV Form 51 PRINT. use ballpoint pen or type First 1 3 mo.- 12 mo. 0 12 mo. or older)l[ PRODUCER: 34 1- 1QVACI~J13 Month Day Year VACCINATION EXPllj ~,~ RABIES V ACCINA'fION CERTIFICATE NASPHV Form 5/ PRINT - use ballpoint pen or type First 1 3 mo.- 12 mo. 0 12 mo. or older)l.l PRODUCER: Veterill'lrj;l Si ture U\I 1:. A""iVlAI.. HUti..., I A~ Ad~ HWY 61 426.138f WHITE BEAR LAKE. MN 5511r 35