HomeMy WebLinkAbout2008-06-25 CC Packet
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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
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
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Total
$74,762
~z.~e-
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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-
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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
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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
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