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Home My WebLink About2004-04-28 WS & CC Meeting - , 6=~ WORK SESSION "JjJ U' CITY WORK SESSION & COUNCIL MEETING Wednesday. April 28, 2004 .W JI CALL TO ORDER 1. Roll Call I) ()Jr (t'-O-V~r - <;:,? C;~ ~~ $ -7",'1 c;~ i%c,e L:CS ) () tiW t.VUv-V 'I?'~ ;I ~w.-i".-' LJL ITEMS OF DISCUSSION 1. Personnel Polity Review m ADJOURN COUNCIL MEETING ;2) <;1- PcUAl Uti L ~fz-I tJv. ~) /J~vJ ~A-fo.~ ~M Lf)VUhx'i~. ~- ~'j ~'1-<~ L CALL TO ORDER 1. Roll Call n. APPROVAL OF AGENDA m APPROVAL OF COUNCIL MIN 1. 2. 3. April 14, 2004 City Cound April 14, 2004 City Cound April 21, 2004 City Counci ~,o IV. CONSENT AGENDA tjI City ofCenterville April 14, 2004 through April 28, 2004 Claims I ..7 ~1~fJ 23:. Centennial Fire District Claims lf1 . Centennial Lakes Police Department Claims V. A W ARDS/PRESENTA nONS/APPEARANCES IV. ~"i C"'fV<--- VL PUBLIC HEARINGS --zc;./J.("J ~ f .~ 14, c1 <9 ""L--- .~ ,L I" I 'a-tt / I- L1>'Y ~v"f I) U~ I ~ o-e~ [l.peV' I) jV Lot Splits Request Submitted by Mr. Richard Davidson (1337 Mound Trail) Street VacationlEasement Submitted by Mr. Clay Alcock (Mill Road /.{}, f/.)/ Extension/8th Street) -. WMLI- ft. ~k k.",W tlA"-:'"t /2.. vYl rU/- Rezone/Comprehensive Plan Amendment Request Submitted by Mr. Dennis Shudy (Cedar Street Park) . tru~ / ~ Iv C-.l.c- 14ft. ~if tJn<-- U~1 L. . ~ . s.e- ~ f~ 10 /L1y.~ / ,,!f i/ ~, ~vY,&/ ",'If.' ;vc!),y \P \V~vV / ~~~~\~( ~ Mr. John Thill, Fete des Lacs Parade Coordinator Request for Purchase of / Walkie Talkies & Letter of Resignatiou C; I'd'>' l ",fi1 'Il(' Centerville Lion's Request to Move the Storagt Garage from Chauncey- itC<<l/c.. Barett Gardens to 7087 - 20'" Avenue and the Use of Same 9-L~€.A{\.'0 e.ft<<~ ~ ~d f'\sSe':;f'i~ . OLD BUSINESS V'./c.c fm y Spoilt? ~, - . .... .... . L-FYlG}JI vi} pnVt.ztL o."tty. d?~ uYU,<jl1j~P-Co-' i 1. Predatory Offender- Community Notification Policy, Level II Offender" '.Y'f-r 2. Recommendations for hiring two (2) P,ublic Works Maintenance Cf - ( Employ~s (T~led) . G:' +0 ZrtJ mtLfi,A,':J vi- (K~ L8.f"') . 1r ~o~c~4s%;~~~~ tAh ~ 'L ~/ (~ b ~ ~-/ ADJOlJR.NMENT <cd-". I - .' v-- S{.C-<-<>IL( <1 JL~ L Y#'-cR (1r~ \/0/Lvv"'-f1 D'I <".C',U<.L" ., 1'-, P-' . ~'.'~ e -Ul~ S:h0U/~, , -ft- r~f' <",-,~/ '7rL' ", (',. ",.-J vePtD~ 'f ~ ~45 ~ /;. h jO-rc.tr- vn. NEW BUSINESS -viTI x. . . BOARD OF WATER COMMISSIONERS President: Patrick Harris + Vice President: John Zanmiller Commissioners: Matt Anfang + Bob Cardinal + Gregory K1eindl + Debbie Montgomery + Dave Thune April 20, 2004 Ms. Kim Moore-Sykes, City Administrator City of Centerville 1880 Main Street CenterviIle, Minnesota 55038 Subject: Board of Water Commissioners vacant lot at 160l LaMotte Drive Dear Ms. Moore-Sykes: Thank you for your letter of April13, 2004 requesting that the Board of Water Commissioners be asked to consider reducing the sale price of the subj ect lot if the City agreed to remove the raw water conduit. Although not technically an offer, discussion of this proposal is scheduled for the Board's next meeting, tentatively scheduled for May II, 2004. In the time since you and I last discussed the property, I have received the enclosed Letter of Opinion from Orion Appraisals, Inc. dated April13, 2004. The Letter provides a valuation of the remaining lot in the event the City was to operate a public park adjacent to it. In addition, staff has estimated cost savings that would be experienced by the Board as a result of two possible scenarios posed by the City. Please see the enclosed Option Plans A and B, Valuation Options and the summary below: Option A: City removes pipe from the vacant lot, resulting in revised value of $284,500. Option B: City allows pipe to remain in place, resulting in revised value of$253,900. Staff is prepared to recommend either option to the Board. I can be reached at 651-266-6265 and would be glad to discuss the above options and staff- recommended prices at any time convenient for you or your staff. ~tf~ WLT/jl William 1. Tschida Unit Supervisor copy: Stephen P. Sclmeider, SPRWS General Manager Dave Schuler, SPRWS Chief Engineer Enclosures: 4 SAINT PAUL REGIONAL WATER SERVICES Stephen P. Schneider, General Manager 84th St E. Saint Paul MN 55101-1007 . TTY: 651-266-6299 Saint Paul Regional Water Services provides quality water services to the following cities: Arden Hills.Falcon Heights.LauderdaleLillle Canada-Maplewood.Mendota.Mendota Heights.Roseville.Saint Paul.West St. Paul AA-ADA-EEO Employer ~ @ printed on recycled paper . 01~(11~ Commercial & 1ndU!triaJ Machinery & Equipment Appraisal Specialists April 13, 2004 Mr. urn Tschida Saint Paul Regional Water Servi.ces 8 - 4th Street East, Suite 400 St. Paul, MN 55101 RE: Two single family lots with one lot improved with a dwelling 1601 Lamotte Drive . Centerville & Lino Lakes, MN . Dear Mr. Tschida: Please refer to our recent appraisal of these two parcels, dated November 5,2003. These parcels consists of two single family residential lots; one (parcel 2 - southerly lot) improved With a siIlgle family dwelling and one (parceU - northerly lot) vacant. The dwelling one Parce1.2 is considered to be functiOnally andphysica1ly obsolete and a hindrance to the land. The highest and best use of the site that this property is situated on, is considered to be for the dwelling to be . removed and the land improved with a mid to upper bracket home. Each lot contains 112 feet of lake frontage and a gross area of approximately 23,184 square feet. The properties are located on the southeast side of Centerville Lake, on the northwest side of LanJ.otte Drive at 1601 Lamotte Drive in both Centerville and Lin() Lakes, Minnesota. Our.' conclusion of value for these two lots, assumed to be vacant, as of November 5, 2003 was $270,000 ~ch.' . . . . . In response to your request, we have analyzed the value of the Parcel 2 (southerly parcel currently improved with a dwelling), if Parcell(northerly parcel currently vacant) were utilized. asa public park. . . - . Based on the information contained in this report. and other data considered hi this analysis; it. is our opinion that the Market .V,alueof the subject property (parcel 2) . "AsSumed to -be Vacant" an~ based on a one year marketing exposure period, as of April 8; 2004: .. TWO HUNDBED AND THIRTY FIVE mOUSAND DOLLARS . - ,$235,000 ~..-.~... ......-. . .' ., -- =- F. W. Ger e . MAl . Certified era! Real Property Appraiser License # 4001499 . ORION APPRAISALS. INe. 3495 Willow lAke Blvd. . SuitdOO. SI. Paul. MN 55110 (651) 636.1339. F(JJC: (651) 636-213:U(800) 274.9677. www.orionappraisals.com , . - \ I l w ::::s::: 5 W .-1 .-1 > a: w I- Z W o .r ../ / .J> ~ 1 I [ LOT 6, 8LOCI< 1 I ,,\ J1'~""Tr-C' 1C':'"r A""'....'''.. ....I"'\,....V, ''-.:J ,oJl I'"'\lJUI, V'1 ~ f- "'j "Lj ";/r _ ",--!!, 0 II - . /! ; -r-] · - I. ~ tw tl [ [ ~~~ ~ Cl ,<( o 0:: LV f:: o ::;: .( 0' '.' I ..~.. It -0 . ~""~==1 . 1-r1 '),~ 'c?f <(,.v <,'" ,^ "G..'So .......-- ,'" " qT- '1-">' ~I - ,,_6' '. r. .../~ ~;iI'- '~:I-i> / t~" -- 55O'29'27'E '" ..-: --159.0J--il! t:! aP-j w -- 207.0 -- t..--.... ... .g- I . LOT 1, BLOCK 1 LAMGTTES 2N[) ADn:TJCN .-- ... '" '" C\/ o C\/ 'E 0- <( <C s: . 0" s: .- a:: 0- ._ CI:l (I) -0= 0.00 Oii:aE ceca (I)..J a...... .- 0 D.CO .... ~ '" :J2 '0 <: '" => CIl l!! 0 Cl. r> Q. CIl - <: C> ..c CIl <: 0 E ~ - CIl .!11 CIl -U) )( Cl. '" w 0: w . . . . I I I' I I ~ o '" ~ to I: . 0"C 1:.-0: 0- ._ cu CI) -0= g.2 0 C1):E O:cu C1)...J 0- .- ,.. a.~ ,... LOT 6 """I"" LAl.'I"\T..,..r ' d...vCJ< ... ....IV' ..:.S ole"" I' .;J I ADDIT/"" f VI'f . . ~.._.~~y~rl '. ;~'1 ' /. t\ tw II I v/l /' .I' [ [ al w. o ,<( ~ : ~I ~ I"' :::E '" ~ ~ I /' T.j"'>.~~' . ...o~ ~v- I ~. , I I ~J w y: 5 w W -1 -1 > 0:: W I- Z W () .,,' ~I 550'29'27"' --159.113~-lq __ 207.0--11' ~.-; ~ ...... If- J1P -J w lOT" 8' i"'\ · ' t '" ,^~,.rE I, l.vCI<'" .I""\WIVI I C ""'1"'1. I ~ .&..,u A nl"'\lT"I,...... I . LJUI I IVI'I ~ ~ <:: ::J ..8 c: '" ~ en il'l ... '. :Q '" Cll .g. 2? c. ~ 0> .5 0 ]I - '" il:l .g. D- r . . I . . .~~~ b...-:;fI'. ~~jt-l' Board of Water Commissioners Property Vacant Lot at 1601 LaMotte Rd. Valuation Options 04/20104 Option A. City removes pipe Appraised Value $ 270,000 ADD Considerations SUBTRACT Considerations $ 35,000 Appraised value of vacant/at with pipe removed (11-05-03) Reduction in value of adjacent/at (04-13-04 Letter of Opinion) $ (20,500) Savings from allowing 130 feet of pipe to remain in place $ 284,500 Purchase Price Option B. City allows pipe to remain in qround Appraised Value $ 270,000 ADD Considerations SUElTRACT Considerations $ 35,000 Appraised value of vacant lot with pipe removed (11-05-03) Reduction in value of adjacent lot (04-13-04 Letter of Opinion) $ (20,500) Savings from allowing 130 feet of pipe to remain in place $ (30,600) Savings from 157 less feet of new pipe to install $ 253,900 Purchase Price Above purchase prices assume 2004 closing date. 1601 laMotte Valuation Options CITY OF CENTERVILLE CITY COUNCIL MEETING APRIL 14, 2004 6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held their regularly scheduled meeting on April 14, 2004, at City Hall, 1880 Main Street. PRESENT: Mayor Terry Sweeney Council Member Lee Council Member Paar Council Member Broussard Vickers t Council Member Capra No None ABSENT: STAFF: City Administrator Ms. Moore-Sykes City Attorney Mr. Hoeft City Engineer Mr. Peterson I. CALL TO ORDER Mayor Sweeney called the April 14, 2004, City Council meeting to order at 6:40 p.m. n. SET AGENDA Council Member Paar, under Old Business, would like to add a shed issue regarding Joel Swenson. Council Member Paar would also like to add an executive session on personnel policy. Motion bv Council Member Lee. seconded bv Council Member Caora. to aDD rove the al!enda as modified. All in favor. Motion carried unanimouslv. m APPROVAL OF COUNCIL MINUTES I. March 24. 2004 City Council Meeting Minutes Council Member Capra requested the following changes: On Page I, under Set Agenda, add the word "gardens" after Barett. On page 2, under Consent Agenda, item number 6, change it to say, ''Recommended to EDC Committee member." L City of Centerville April 14, 2004 COlIDcil Meeting Minutes Motion bv Council Member Paar. seconded bv Council Member Broussard Vickers. to aDDrove the March 24. 2004 City Council Meetinl! Minutes as amended. AU in favor. Motion carried unanimouslv. IV. CONSENT AGENDA (1) 1. Centennial Fire District Quarterly Claim 2. Centennial Fire District - April 5, 2004 Claims 3. Parks & Recreation Committee Recommend to Not Exceed $50/per Park - (Flower/Monument Sign Revitalization) - Topsoil, Flowers, eic. (park Maintenance Funds) 4. Acceptance of Ms. Beisy Scheller's Resignation - EDC Motion bv Council Member Lee. seconded bv Council Member CaDra. to aDnrove the Consent Al!enda (1) as Dresented. AIl in favor. Motion carried unanimousIv. CONSENT AGENDA (2) 1. City ofCenterville March 25,2004 through April 14, 2004 Claims. 2. Centennial Lakes Police Department - March 15-31, 2004 & April 1-8, 2004. The Council discussed the bills. Motion bv Council Member CaDra. seconded bv Council Member Lee. to aDnrove Consent Al!enda (2) as Dresented. AU in favor. Motion carried unanimously. A W ARDS/PRESENTATIONS/APPEARANCES 1. Anoka County Board of Review. The Anoka County Board of Review was present at the Council meeting to answer questions. Crystal of the Anoka County Assessors Office gave an overview of the materials. Motion bv Council Member Broussard Vickers. seconded bv Council Member Canra. to close the Board of Review at 7:45 n.m. AIl in favor. Motion carried unanimouslv. 2. Mr. & Mrs. John Lundbald. 1737 Partridge Place Mrs. John Lundbald stated her complaint regarding nails being left on her streei by developers in the area and causing her several flat tires. After a discussion by the Council members, Council Member Broussard Vickers informed her that all the building permits in the area will be pulled and letters sent to the builders, telling them to be cognizant of picking up their nails. Page 2 of8 City of Centerville April 14, 2004 C01l11ci1 Meeting Minutes VI. PUBLIC HEARINGS 1. Lot Combination Request Submitted by Mr. & Mrs. Domrlas Chesnut (Lots 4 and 5. Block 1 - The Shores Subdivision) Mayor Sweeney opened the public hearing at 7: 14 p.m. ~'" Council Member Capra stated she spoke to the Reilines, and that they have no problem with this lot combination. Motion bv Council Member Capra. seconded bv Council Member Lee. to close the Dublic hearin!!:. All in favor. Motion carried unanimouslv. Mayor Sweeney closed the public hearing at 7: 17 p.m. Motion bv Council Member Lee. seconded bv Conncil Member Broussard Vickers. to anprove the Lot Combination Reouest submitted bv Mr. & Mrs. Doul!ias Chesnut (Lots 4 and 5. Block 1 - The Shores Subdivision). All in favor. Motion carried unanimouslv. 2. Lot Splits Request Submitted by Mr. Richard Davidson (1337 Mound Trail) Council Member Broussard Vickers stated the existing house would become a nonconformity once the lot split occurred. There was a discussion about access for the fire department to the property and the need for a 20-foot road with a five-ton design. Mayor Sweeney suggested getting something in writing from the property owner saying they would build a five-ton road if the City grants the lot split. Council Member Capra suggested continuing the public hearing in order to address the issues with the property owner. Motion bv Council Member Canra. seconded bv Council Member Lee to continue the Dublic hearin!!. All in favor. Motion carried unanimouslv. Public Works Director will be in contact with the property owner. 3. Street VacationlEasement Submitted bv Mr. Clay Alcock (Mill Road Extension/Sth Street) 4. RezonelComnrehensive Plan Amendment Request Submitted by Mr. Dennis Shudy (Cedar Street Park) Mayor Sweeney opened the public hearings on items 3 and 4 at 6:59 p.m. Page 3 ofS L _ __ _ _ City of Centerville April] 4, 2004 Council Meeting Minutes Council Member Capra stated they did not have the information to do this comprehensive plan amendment at this time, and that with the street vacation easement, there is an understanding these residents would like to work out an agreement amongst themselves. Motion bv Council Member Canra. seconded bv Council Member Paar. to continue these nuhlic hearinl!S to the next Council Meetinll. AU in favor. Motion carried unanimouslv. Mark Forrey, 2068 W. Cedar St., indicated he would like to speak regarding the Dennis Shudy matter. He stated he lives directly across the street from the property in question. He stated he has an easement across the property in question, so that there would be no access for Mr. Shudy to the road. The Council had a discussion regarding the zoning and history of the property. Mayor Sweeney stated the property is zoned industrial, and that it was tax forfeit land. Council Member Broussard Vickers suggested to Mr. Forrey that he speak to Mr. Shudy between now and the next Council meeting regarding the issue and return to the next Council meeting to speak to the issue. 5. Lot SnlitsiLot Combination Requests Submitted by KCR Investments & Mr. & Mrs. Keith Kruger (Hunters Crossing 2nd Addition.. Phase 2 & 6719 Centerville Road) Mayor Sweeney opened the public hearing at 7:25 p.m. Mr. Rick Carlson and Mr. Keith Kruger explained the reason for the need for the lot splitllot combination requests. Motion bv Council Member Capra. seconded bv Council Member Paar. to close the public hearinll. AD in favor. Motion carried unanimouslv. Mayor Sweeney closed the public hearing at 7:29 p.m. Motion bv Council Member Capra. seconded bv Council Member Broussard Vickers. to approve the Lot Splits/Lot Combination reauests submitted bv KCR Investments & Mr. & Mrs. Keith Krnller (Hunters Crossinll 2nd Addition. Phase 2 & 6719 CenterviDe Road). AD in favor. Motion carried unanimouslv. vn. NEW BUSINESS f:r 1. 2003 Audit - Mr. Steve McDonald. ABDO. ABDO. Eick & Meyers The Council discussed the same with Mr. McDonald. Page 4 of8 City of CenterviIle April 14, 2004 Council Meeting MiOl1les Motion bv Council Member Caora. seconded bv Council Member Lee. to acceot the 2003 Audit as oresented. All in favor. Motion carried unanimouslv. Motion bv Council Member Caora. seconded by Council Member Broussard Vickers. to autborize the City Finance Director to pnblish the 2003 Audit. All in favor. Motion carried unanimouslv. 2. Mr. George Eilertson. Northland Securities - Financial Advisory AlZTeement & Joint Power Police Station Mr. George Eilertson, Northland Securities, discussed the Financial Advisory Agreement and setting the sale for the second meeting in May. Mr. Eilertson explained the bond information and financial information he had put together for the Joint Power Police Station. He also discussed getting the City a Moody's rating, and discussed the issue of bond insurance. The Council discussed the issues. Motion bv Council Member Broussard Vickers. seconded bv Council Member Lee.. to acceot Northland Securities as the rmandal advisor for the street imorovement proiect. All in favor. Motion carried unanimouslv. Motion bv Council Member Lee. seconded by Council Member Broussard Vickers. to table the issue of the Joint Power Police Station. AU in favor. Motion carried unanimouslv. 3. Res. #04-020 - Issuance & Sale 0[$2.545.000 G.O. Bond - 2004 Street Proiect Mr. Eilertson explained the resolution is to set the sale for May 26th. He said what they've done in the past is put together the offering document and distribute it to underwriting firms that will bid on the bonds. Motion by Council Member Broussard Vickers. seconded bv Council Member Paar. to aporove Resolution #04-020. Issuance & Sale of $2.545.000 G.O. Bond for the 2004 Street Proiect on Mav 26. All in favor. Motion carried unanimouslv. 4. Sweeping ofOiiway Drive - Request Submitted by Ms. L.A. Peterson The Council discussed this request and decided to deny it. 5. Parks & Recreation Recommendation For CommerciallIndustrial Park Dedication ~ The Council discussed this item. Page 5 of8 l_ _ - ,/ ~ // / /\/ ~ City of Centerville April 14, 2004 C01I1leiI Meeting Minutes Motion by Council Member Lee. seconded by Conncil Member Broussard Vickers. to table the matter of the Park & Recreation Commission recommendation for Commercial/Industrial Park Dedication Fees. as presented. AU in favor. Motion carried unanimously. 6. Res. #04-021 - Approving Plans & Specifications and Ordering Bids for the 2004 Street Project Motion bv Council Member Broussard Vickers. seconded bv Council Member Capra. to annrove Resolution #04-021. Annrovin!! Plans & Snecifications and Orderin!! Bids for the 2004 Street Proiect. All in favor. Motion carried nnanimousl . Staff Recommendations for Hiring (2) Public Works Maintenance Positions Ms. Moore-Sykes described the screening process she went through ofthe SO applicants using a questionnaire provided by the League of Mi~ta Cities, to come up with 13 individuals for interviews. She stated Mr. Richard L~le and Mr. Alan Anderson were the top two individuals chosen by the panel of four for the positions. Public Works Director Palzer expressed his reservations about the selection process of the 13 individuals. He indicated he had spoke to an individual who had applied who had more years of experience than some of the l3, and he wondered why he wasn't chosen. Council Member Paar and Council Member Lee expressed their dissatisfaction with the process not including Mr. PaIzel. .. . ~ i -.1 j in the screening of the SO applicants. Council Members Broussard Vickers and Mayor Sweeney expressed their approval of the process that had been gone through in selecting the applicants. The Council had a lengthy discussion regarding this issue. Motion by Council Member Broussard Vickers. seconded bv Mayor Sweeney. to approve staff's recommendations for hirin!! two Public Works Maintenance nositions. There was another lengthy discussion where the Council members expressed their views. City Attorney Hoeft stated if they were going to go through the process again and use different criteria, then they needed to apply the criteria to all SO applicants and interview the applicants who now met the criteria. Motion bv Council Member Capra. seconded by Council Member Lee. to table the issne until the next Council meetin!!. Three in favor (Council Members Capra. Lee and Paar. and two opposed (Mayor Sweeney and Council Member Broussard Vickers). Motion carried. Page 60f8 City of Centerville April 14, 2004 Council Meeting Minutes Motion by Council Member Lee. seconded by Council Member CaDra. to have Ms. Moore-Sykes and Mr. Paul Palzer. Public Works DeDt.. work tOl!:ether to create criteria to review all 50 candidates to ensure that they are not missinl!: the very best candidate. Three in favor. and two ORDosed. Motion carried. 8. Ordinance #52 - Recommended Language Amendments There was a discussion regarding after the ordinance is passed, it will be published. Motionbv Council Member CaDra. seconded by Council Member Lee. to adoDt Ordinance #52. Recommended Lanl!:ual!:e Amendments. All in favor. Motion carried unanimouslv. 9. Predatory Offender Notification City Attorney Hoeft explained that the police department is already required to release information on sex offenders being released. He explained the statutes provide immunity to cities if they don't provide any information, but that the city could be liable if they provide information which they are not supposed to. Council Member Lee stated it was his position that the City notify all the residents in the community. The Council discussed the item. Council Member Capra suggested notifying residents to check the city's web cite for the information in order to not be held liable for disseminating incorrect information. City Attorney Hoeft agreed with this idea and said that Staff should draft something up for the next meeting. No action taken. 10. Issuance of Overwei~ht Permits for L & N Sodding The Council discussed this item. Motion by Council Member Broussard Vickers. seconded by Council Member Lee. to aDDrove the issuanee of Overweil!:bt Permits for L & N Soddinl!. All in favor. Motion carried unanimonslv. 11. Approval of Restoration Work - Hardwood Pond (L & N Sodding) The Council discussed this item. Page 70f8 l_ Cily of Centervi11e April 14, 2004 Council Meeting Minutes Motion bv Council Member Lee. seconded bv Council Member Broussard Vickers to apnrove the restoration work for Hardwood Pond (L & N Sodding). AU in favor. Motion carried unanimouslv. 12. Bald Eagle Water-Ski Show - Approval Letter. Motion bv Council Member Capra. seconded bv Council Member Broussard Vickers. to furnish a oermission letter for the Bald Eacle Water-Ski Show. contin!!ent on criteria set forth bv the Anoka County Sheriffs Water Patrol. All in favor. Motion carried unanimouslv. vm. OLD BUSINESS 1. Mr. JoetSwenson There was a discussion regarding the shed and the need to move it by May 31 "because it's in a drainage easement. IX. ANNOUNCEMENTSIUPDATES 1. Council Member Paar gave an EDC update regarding the County Road 14 project at the Wargo Nature Center. He stated the EDC would like a committee from the City Council to attend further meetings. He stated the EDC needs a total of $700 for the upcoming Business Appreciation Dinner. Motion bv Councll Member B'G~"'" seconded bv Councll Member Lee. to approve pavin!! $700 to the EDC for their Business Appreciation Dinner. An in favor. MOOM "alli.,do 'f - ( Vcdl~) Cp p~ 2. Public Works Director Palzer discussed the fact the police department would like to have the old cabinets from City Hall. The Council discussed this. Motion bv Council Member Broussard Vickers. seconded bv Council Member Lee. to donate the old cabinets to the nolice department. AU in favor. Motion carried unanimouslv. XI ADJOURNMENT The meetin2 was adiourned at 10:11 p.m. to the Executive Session. Transcribed by: Sheree Theobald, Recording Secretary TimeSaver Off Site Secretarial, flU:. Page 8 of8 1__ __ __ __ ____ CITY OF CENTERVILLE CITY WORKSESSION MEETING April 21, 2004 6:00 p.m. Unapproved I. CALL TO ORDER Mayor Sweeney called the Council Worksession to order at 6:15 p.m. Also present at the meeting were Councilmembers Broussard Vickers, Capra, Lee and Paar; City Administrator Kim Moore-Sykes, Finance Director Ellen Paulseth, Nick Skarich, Northland Securities; Paul Keleher, Sedona Homes, Scott Montgomery, Sedona Homes, Dale Montgomery, Sedona Homes, Pat Pel string, Pelstring Financial Services. II. DISCUSSION ITEMS Information Regarding Tax Increment Financing (TIFt Paul Keleher, Sedona Homes, introduced the issues that he and his associates have in trying to redevelop the site. He indicated that some of the lots have bad soil conditions, substandard buildings that will have to be removed and wetlands. Because of these issues, acquiring and redeveloping these lots increase the lot costs of the project from a market standard of $35,000 per lot to $54,000 per lot. Mr. Keleher reported that at these per lot costs, Jackson Commercial would not be able to compete in the townhome market because they would have to price the proposed townhomes too high. He stated that these are the reasons that they will need TlF assistance from the City. . Nick Skarich, Northland Securities, provided information to the Council on applying TlF to this project and answered questions from the City Council on the financial and legal aspects of using TIF for this project. Council consensus was to direct Mr. Skarich to review the financial analysis as provided by Sedona Homes. m. ADJOURNMENT The Council Worksession was adjourned at 7:45 p.m. . , Respectfully submitted by: Kim Moore-Sykes, City Administrator CITY OF CENTERVll,LE CITY WORKSESSION.MEETING April 14, 2004 5:30 p.m. Unapproved I. CALL TO ORDER Mayor Sweeney called the Council worksession to order at 5:30 p.rn. Also present at the meeting were Councilmembers BrouSsard Vickers, Capra, Lee and Paar; City Administrator Kim Moore-Sykes, Finance Director Ellen Paulseth, Mark Ruff, Ehlers & Associates. II. DISCUSSION ITEMS Information Regarding Tax Increment Financing (TIP). Mark Ruff, Ehlers & Associates provided an overview of Tax Increment Financing (TIF). He explained how and when using TIF is appropriate. Mr. Ruff further explained how TIP could be used for the redeveloped project as proposed by Jackson Commercial. Council and Staff. €o~il:t~1r lra';::L~~ted that Staff schedule another TIF worksession to further explore this issue, but asked that it not be scheduled before a Council meeting as she feels the Council needs more time for this discussion. Council directed Staff to coordinate and schedule another worksession. ill. ADJOURNMENT The Council Worksession was adjourned at 6:30 p.m. to move to the regularly scheduled Council meeting. Respectfully submitted by: Kim Moore-Sykes, City Administrator l_ I I .. .I tervi[[e 'Esta6fisned11J57 UPDATE RECEIPTS AND DISBURSEMENTS APRIL 26 THROUGH APRIL 28, 2004 RECEIPTS $782,683.56 DISBURSEMENTS $ 2.121.26 L _ Amount CITY OF CENTERVILLE Cash Receipts APRIL 26 THRU APRIL 28. 2004 Tran Date Refer Comments FUND 101 GENERAL FUND Act Type G General Ledger $0.50 4/26/2004 $1.00 4/26/2004 $0.50 4/26/2004 $2.25 4/26/2004 $17.11 4/26/2004 $0.50 4/27/2004 Ad $21.86 Act Type R Revenue $8.50 $150.40 $110.00 $100.00 $20.00 $44.00 Ad $432.90 FUND $454.76 4/26/2004 4/26/2004 4/26/2004 4/26/2004 4/27/2004 4/28/2004 FUND 346 Hunters Crossing II G.O. Bond Act Type R Revenue $530.83 $3,510.00 $13,650.00 $17,690.83 Ad FUND $17,690.83 4/28/2004 4/28/2004 4/28/2004 27 7353 PELTIER CIRCLE - 28 1746 DUPRE RD - 04-024 26 1756 PARTRDIGE PL- o UB UR Receipt Group 01 o UB UR Receipt Group 01 30 1835 HAYFIELD RD- Batch Name 04-2604 04-2604 04-2604 04-2604UT 4-26-04UT 04-2704 29 2004-2005 DOG TAG # 182 04-26-04 28 1746 DUPRE RD - 04-024 04-2604 27 7353 PELTIER CIRCLE - 04-2604 26 1756 PARTRDIGE PL - 04-2604 30 1835 HAYFIELD RD - 04-2704 31 SPECIAL ASSESS SEARCH 04-2804 1 Bond Proceeds-Accrued Int 1 Bond Proceeds-Unused 1 Bond Proceeds-Capitalized FUND 415 STORM WATER IMP PROJECTS Act Type R Revenue $246.68 $1.04 $9.81 $143.98 $129.72 $49.72 $1.00 $158.33 $0.05 $70.00 $0.05 $130.26 $950.64 Ad 4/26/2004 4/26/2004 4/26/2004 4/27/2004 4/27/2004 4/27/2004 4/27/2004 4/28/2004 4/28/2004 4/28/2004 4/28/2004 4/28/2004 o UB Receipt Serv 10 DRAIN o UB Receipt Serv Pen 10 o UB Receipt Serv 10 DRAIN o UB Receipt Serv 10 DRAIN o UB Receipt Serv 10 DRAIN o UB Receipt Serv 10 DRAIN o UB Receipt Serv Pen 10 o UB Receipt Serv 10 DRAIN o UB Receipt Serv Pen 10 o UB Receipt Serv 10 DRAIN o US Receipt SelV Pen 10 o UB Receipt Serv 10 DRAIN 04/28/04wire 04/28/04wire 04/28/04wire 04-2604UT 04-2604UT 4-26-04UT 04-27-04UT 04-2704UT 042704UT 04-2704UT 042804ut 042804ut 04-2804ut 428-04UT 428-04UT 'I 04/28/04 3:37 PM Page 1 Account Descr G 101-24503 Elec. Permtt Surcharge G 101-24500 Bldg. Permit Surcharge G 101-24502 Mech. Permit Surcharge G 101-11500 Accounts Receivable G 101-11500 Accounts Receivable G 101-24501 Plmbing Permit R 101-42700-32200 Animal Licenses R 101-42400-32210 Building Permits R 101-42403-32225 Electrical R 101-42400-32212 Mechanical R 101-42400-32180 Plumbing Permits R 101-41400-34107 Assessment R 346-43000-36210 Interest Earnings R 346-43000-39310 Proceeds-Gen R 346-43000-39310 Proceeds-Gen R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water FUND $950.64 FUND 446 HUNTERS CROSSING PHASE II Act Type R Revenue $749,800.00 4/28/2004 1 Bond Proceeds $780,000 04/28/04wire R 446-43000-39310 Proceeds-Gen Ad $749,800.00 '" Amount CITY OF CENTERVILLE Cash Receipts APRIL 26 THRU APRIL 28, 2004 Tran Date Refer Comments FUND $749,800.00 FUND 601 WATER FUND Act Type G General Ledger $1.99 4/2612004 $2.22 4/27/2004 $1.11 412812004 Act. $5.32 Act Type R Revenue $30.60 $8.89 $24.54 $0.02 $0.01 $1,198.16 $34.00 $4.46 $549.10 $708.13 $51.00 $3.40 $625.41 $17.00 $682.40 $5.21 $374.00 Act. $4,316.33 FUND $4,321.65 FUND 602 SEWER FUND Act Type R Revenue $2,368.53 $96.15 $10.23 $49.00 $438.28 $1,124.28 $1,410.93 $9.80 $686.00 $0.45 $1,227,64 $0.45 $1,649,77 Act. $9,071.51 4/2612004 4/2612004 4126/2004 4/2812004 412612004 4/2812004 4/2712004 4127/2004 412712004 412712004 412712004 4/27/2004 4128/2004 4/2812004 412812004 4/2812004 412812004 4/2612004 412612004 4/2612004 4/2612004 4/2712004 412712004 4127/2004 4/2712004 4128/2004 4128/2004 412812004 4128/2004 412812004 FUND $9,071.51 FUND 619 SAVINGS & CD INTEREST Act Type R Revenue $394,17 4128/2004 Act $394,17 I o UB Receipt Sure 1 SALES o UB Receipt S"re 1 SALES o UB Receipt Sure 1 SALES Batch Name 04-2604UT 04-2704UT 428-04UT o UB Receipt Serv 15 WATER 04-2604UT o UB Receipt Serv Pen 1 04-2604UT o UB Receipt Serv 1 WATER 4-26-04UT o UB Receipt Serv 30 WATER 04-2604UT o UB Receipt Serv Pen 30 04-2604UT o UB Receipt Serv 1 WATER 04-2604UT o UB Receipt Serv 15 WATER 04-2704UT o UB Receipt Serv 30 WATER 04-27 -04UT o UB Receipt Sarv 1 WATER 04-2704UT o UB Receipt Serv 1 WATER 04-27 -04UT o UB Receipt Serv 1 WATER 042704UT o UB Receipt Serv Pen 1 04-2704UT o UB Receipt Serv 1 WATER 042804"t o UB Receipt Serv 15 WATER 428-04UT o UB Receipt Serv 1 WATER 428-04UT o UB Receipt Serv 30 WATER 042804"t o UB Receipt Serv 1 WATER 04-2804"t o UB Receipt Serv 6 SEWER o UB Receipt Serv 6 SEWER o UB Receipt Serv Pen 6 o UB Receipt Sarv 18 o UB Receipt Serv 6 SEWER o UB Receipt Serv 6 SEWER o UB Receipt Serv 6 SEWER o UB Receipt Serv Pen 6 o UB Receipt Serv 6 SEWER o UB Receipt Serv Pen 6 o UB Receipt Serv 6 SEWER o UB Receipt Serv Pen 6 o UB Receipt Serv 6 SEWER 04-2604UT 4-26-04UT 04-2604UT 04-2604UT 042704UT 04-2704UT 04-27 -04UT 04-2704UT 04-2804ut 042804"t 428-04UT 428-04UT 042804ut 1 accrued interest on FNMA 04/28104int 04128104 3:37 PM Page 2 Account Oeser G 601-20800 State Sales & Use Tax G 601-20800 State Sales & Use Tax G 601-20800 State Sales & Use Tax R 601-49400-37100 Water Sales R 601-49400-37100 Water Saies R 601-49400-37100 Water Sales R 601-49400-34400 Safe Drinking R 601-49400-34400 Safe Drinking R 601-49400-37100 Water Sales R 601-49400-37100 Water Sales R 601-49400-34400 Safe Drinking R 601-49400-37100 Water Sales R 601-49400-37100 Water Sales R 601-49400-37100 Water Sales R 601-49400-37100 Water Sales R 601-49400-37100 Water Sales R 601-49400-37100 Water Sales R 601-49400-37100 Water Sales R 601-49400-34400 Safe Drinking R 601-49400-37100 Water Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Saies R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 619-49200-36210 Interest Earnings ., CITY OF CENTERVILLE 04/28/04 3:37 PM Page 3 Cash Receipts APRIL 26 THRU APRIL 28, 2004 Amount Tran Date Refer Comments Account Oeser FUND $394.17 $782,683.56 Name 10100 MAIN STREET BANK Paid Chk# 019146 CONSTRUCTION BULLETIN Paid Chk# 019147 DAVE KICHLER INSPECTIONS, Paid Chk# 019148 MENARDS - FOREST LAKE Paid Chk# 019149 MN DEPT OF PUBLIC SAFETY Paid Chk# 019150 QWEST Batch Name CITY OF CENTERVILLE 04128/042:58 PM Page 1 *Check Summary Register@ APRIL 2004 Check Dale Check Ami 4/2812004 4/28/2004 4/2812004 4/2812004 4/28/2004 Total Checks $275.04 MN-UTILlTY & STREET IMPROVEMEN $1,591.20 ELECTRICALlNSPECTlONS $12.72 SANITARY SEWER FENCE POST $25.00 PUMPHOUSE #1 HAZARDOUS CHEM. I $217.30 429-4969 SERVTHRU 5-15-04 $2,121.26 . tervi{[e (Estafj(jshed'1857 RECEIPTS, DISBURSEMENTS & PAYROLL APRIL 15 THROUGH APRIL 23, 2004 RECEIPTS DISBURSEMENTS PAYROLL (4-22-04) $8,533.34 $112,624.45 $11,099.29 NOTE: An update will be handed out on May 28, 2004 for Receipts and disbursements. 1- _ . Amount CITY OF CENTERVILLE Cash Receipts APRIL 15 THROUGH APRIL 23, 2004 04123/0412:17 PM Page _ Tran Date Refer Comments FUND 101 GENERAL FUND Act Type E Expenditure $0.43 4/2312004 $OA3 4/23/2004 Act $0.86 Act Type G General Ledger $0.50 4/19/2004 -$50.20 4/19/2004 -$929.93 4/19/2004 -$86.59 4/19/2004 $0.50 4/19/2004 $3.00 4/1912004 $0.50 4/19/2004 $104.13 412212004 $0.50 412312004 $5.00 4/2312004 $1.00 4/23/2004 Act -$951.59 Act Type R Revenue $77.62 $50.65 $271.46 $8.50 $20.00 $392. n $8.50 $17.00 $110.00 $75.00 Act $1,031.50 FUND $80.77 4/19/2004 4/19/2004 4/19/2004 4/1912004 4/19/2004 4/23/2004 412312004 4/2312004 4/2312004 4/23/2004 19 REIMBURSE FOR LONG 20 REIMBURSE LONG 15 1748 DUPRE RD - 04-021 o UB UR Receipt Group 00 o UB UR Receipt Group 01 o UB UR Receipt Group 02 16 7209 BRIAN DR - 04-022 131741DUPRERD-04-ll20 12 7353 PELTIER CIRCLE - o UB UR Receipt Group 01 24 1755 PARTRIDGE PL 22 2025 GATBNAY CIRCLE 21 1995 S ROBIN LN - 04-ll24 Batch Name 04-23-ll4 04-23-04 04-1904 041904ADJ 041904ADJ 041904ADJ 04-1904 041904 041904 04-22-04UT 04-23-04 04-23-04 04-23-04 151748DUPRERD-04-ll21 04-1904 16 7209 BRIAN DR - 04-022 04-1904 13 1741 DUPRE RD - 04-020 041904 14 CATTAG-0178-2004-2005041904 12 7353 PELTIER CIRCLE - 041904 22 2025 GA TBNA Y CIRCLE 04-23-04 25 2004-2005 DOG TAG #181 04-23-04 23 DOG TAGS # 179 & 180 - 04-23-04 24 1755 PARTRIDGE PL 04-23-04 21 1995 S ROBIN LN - 04-024 04-23-ll4 FUND 325 ELEM WATER MAIN EXT DEBT SERV Act Type E Expenditure $195.25 4/23/2004 18 REFUND ACeT - OVER Act $196.25 FUND $196.25 FUND 402 PARK CAPITAL PROJECT Act Type R Revenue $40.00 4/19/2004 Act $40.00 FUND $40.00 17 DONATION TO P & R FUND 415 STORM WATER IMP PROJECTS Act Type R Revenue $88.85 $10.48 $0.52 $84.53 $1.00 $242.73 $2.67 $60.14 $0.69 4119/2004 4/19/2004 4/1912004 4/21/2004 4/21/2004 4/22/2004 4/2212004 4/2212004 4/2212004 o UB Receipt Serv 10 DRAIN o UB Receipt Serv 10 DRAIN o UB Receipt Serv Pen 10 o UB Receipt Serv 10 DRAIN o UB Receipt Serv Pen 10 o UB Receipt SeN 10 DRAIN o UB Receipt Serv Pen 10 o UB Receipt SoN 10 DRAIN o UB Receipt Sorv Pen 10 04-23-04 04-1904 041904ADJ 0419-04UT 0419-04UT 042104ut 042104ut 04-22-<l4UT 04-22-04UT 04-2204ut 04-2204u1 Account Oeser E 101-41400-321 Telephone E 101-41400-321 Telephone G 101-24500 Bldg. Permit Surcharge G 101-11500 Accounts Receivable G 101-11500 Accounts Receivable G 101-11500 Accounts Receivable G 101-24500 Bldg. Permit Surcharge G 101-24500 Bldg. Permit Surcharge G 101-24502 Mech. Permit Surcharge G 101-11500 Accounts Receivable G 101-24503 Elec. Permit Surcharge G 101-24500 Bldg. Permit Surcharge G 101-24500 Bldg. Permit Surcharge R 101-4240Q..32210 Building Permits R 101-4240Q..32210 Building Permits R 101-42400-32210 Building Permits R 101-4270Q..32200 Animal Licenses R 101-42400-32212 Mechanical R 101-4240Q..32210 Building Permits R 101-42700-32200 Animal Licenses R 101-42700-32200 Animal Licenses R 101-42403-32225 Electrical R 101-42400-32210 Building Permits E 325-47000-620 Fiscal Agent's Fees R 402-45000-36260 Donations and R 415-4300Q..32350 Storm Water R 415-43000-32350 Storm Water R 415-4300Q..32350 Storm Water R 415-43ooQ..32350 Storm Water R 415-4300Q..32350 Storm Water R 415-43ooQ..32350 Storm Water R 415-43000-32350 Storm Water R 415-43000-32350 Storm Water R 415-4300Q..32350 Storm Water $39.72 4/23/2004 $0.50 4/23/2004 Act. $531.83 .UND $531.83 FUND 601 WATER FUND Act Type G General Ledger $1.99 4/19/2004 $9.28 4/22/2004 Act. $11.27 Act Type R Revenue $30.60 $353.36 $3.12 $1.27 -$84.00 $62.33 $311.80 $142.80 $33.06 $1,411.29 $243.13 $2.96 $4.08 $190.40 Act. $2,706.20 FUND $2,717.47 FUND 602 SewER FUND Aet Type R Revenue $625.65 $5.14 $102.66 $49.00 $779.47 $9.80 $6.81 $589.42 $26.19 $2,084.70 $294.00 $49.00 $340.28 $4.90 Act. $4,967.02 Amount FUND $4,967.02 $8,533.34 Name 4/19/2004 4/19/2004 411912004 4/19/2004 4/19/2004 4/19/2004 4/21/2004 4/2212004 4/2212004 4/2212004 412212004 412212004 4/23/2004 4/2312004 4/19/2004 4/1912004 4119/2004 4/19/2004 4/21/2004 4/2112004 4/2212004 4/22/2004 4/2212004 412212004 4/2212004 4/23/2004 4/2312004 4/2312004 Tran Date o UB Receipt Serv 10 DRAIN 042304UT R 415-43000-32350 StOl111 Water o UB Receipt Serv Pen 10 042304UT R 415-43000-32350 StOl111 Water o UB Receipt Sure 1 SALES 041904ADJ G 601-20800 State Sates & Use Tax o UB Receipt Sure 1 SALES 04-22-04UT G 601-20800 Slate Sales & Use Tax o UB Receipt Serv 15 WATER 041904ADJ o UB Receipt Serv 1 WATER 041904ADJ o UB Receipt Serv Pen 1 0419-04UT o UBReceiptServ30WATER 041904ADJ o UB ReceiptServ 40 041904ADJ o UB Receipt Serv 1 WATER 0419-04UT o UB Receipt Serv 1 WATER 042104ut o UB Receipt Serv 15 WATER 04-22-04UT o UB Receipt Serv Pen 1 04-22-04UT o UB Receipt Serv 1 WATER 04-22-04UT o UB Receipt Serv 1 WATER 04-2204ul o UB Receipt Serv Pen 1 04-2204ut o UB Receipt Serv Pen 1 042304UT o UB Receipt Serv 1 WATER 042304UT o UB Receipt Serv 6 SEWER o UB Receipt Serv Pen 6 o UB Receipl Serv 6 SEWER o UB Receipt Serv 18 o UB Receipt Serv 6 SEWER o UB Receipt Serv Pen 6 o UB Receipt Serv Pen 6 o UB Receipt Serv 6 SEWER o UB Receipt Serv Pen 6 o UB Receipt Serv 6 SEWER o UB Receipt Serv 18 o UB Receipt Serv 18 o UB Receipt Serv 6 SEWER o UB Receipt Serv Pen 6 Refer Comments 041904ADJ 0419-04UT 0419-04UT 041904ADJ 042104ul 042104ul 04-2204ul 04-2204ul O4-22-04UT 04-22-04UT 04-22-04UT 042304UT 042304UT 042304UT Batch Name CITY OF CENTERVILLE R 601-49400-371 00 Water Sales R 601-49400-37100 Water Sales R 601-49400-37100 Water Sales R 601-49400-34400 Safe Drinking R 601-49400-37100 Waler Sales R 601-49400-37100 Water Sales R 801-49400-37100 Water Sales R 601-49400-37100 Water Sales R 601-49400-37100 Water Sales R 601-49400-37100 Water Sales R 601-49400-37100 Water Sa'es R 601-49400-37100 Water Sales R 601-49400-37100 Waler Sales R 601-49400-371 00 Waler Sales R 802-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sa'es R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 602-43200-37200 Sewer Sales R 802-43200-37200 Sewer Sa'es Account Oeser *Check Summary Register@) 04/23/04 12:12 PM Pagel APRIL 2004 Check Date 10100 MAIN STREET BANK Paid Chk# 019121 ANOKA COUNTY Paid Chk# 019122 AVLlC Paid Chk# 019123 BANYON DATA SYSTEMS INC Paid Chk# 019124 FORTIS BENEFITS Paid Chk# 019125 FOURRE, MARK Paid Chk# 019126 GOLDENGA TE INTERNET I 4/2812004 4/2812004 4/2812004 4/2812004 4/2812004 4/2812004 Check Amt $103,380.00 243122330002 - RECONVEYANC $606.00 DEF COMP WIH 4-22-04 $400.14 WINPOS ANNUAL SUPPORT $108.00 SHORT TERM DISABILITY $20.00 REIMBURSE FOR KEY DEPOSIT $49.90 INTERNET SERVICE. 982280 Paid Chk# 019127 Paid Chk# 019128 Paid Chk# 019129 Paid Chk# 019130 Paid Chk# 019131 Paid Chk# 019132 Paid Chk# 019133 Paid Chk# 019134 Paid Chk# 019135 Paid Chk# 019136 Paid Chk# 019137 Paid Chk# 019138 Paid Chk# 019139 Paid Chk# 019140 Paid Chk# 019141 Paid Chk# 019142 Paid Chk# 019143 Paid Chk# 019144 Paid Chk# 019145 IMAGE PRINTING & GRAPHICS INTERNATIONAL CODE INTERNATIONAL UNION OF MCLEOD USA MINNEGASCO" MINNESOTA BENEFIT MINNESOTA PIPE & MOORE-SYKES. KIM NATIONWIDE RETIREMENT NCPERS LIFE INSURANCE POL YSTEEL SUPPLY PRESS PUBLICATIONS PUBLIC EMPLOYEES QWEST TIME SAVER US BANK TRUST US BANK" W. W. GRAINGER. INC. XCEL ENERGY CITY OF CENTERVILLE PAYROLL 4-22-04 4/2812004 412812004 4/2812004 412812004 412812004 412812004 412812004 4128/2004 4/2812004 412812004 4/2812004 4128/2004 412812004 4128/2004 412812004 4/2812004 4/2812004 412812004 412812004 Tolal Checks $156.43 3 PART TEMP OIC PERMITI OC PER $100.00 GOVERNMENTAL MEMBER DUES $60.00 T PETERSON & J MCPHERSON UNION $715.96 PHONE SERV THRU 4-15-04 $1.153.257071 CENTERVILLERD-SERVTHR $78.01 E PAULSETH INS - FOR MAY $83.70 REPAIR SUPPLIES $147.14 REIMBURSE FOR MILEAGE $198.52 DEF COMP WIH 4-22.04 $32.00 T BENDER & E PAULSETH LIFE INS $40.00 TRAINING SEMINAR $133.00 AD FOR BID $1.654.72 PAYROLL WIH 4-22-04 $115.08 651-429-4834 - SERVTHRU5-15-0 $136.00 P & Z MEETING 4-6-04 $675.00 HUNTER'S CROSSING II GO TEMP $649.88 MCFOA CONFERENCE - 3-16 THRU 3 $254.68 METER KIT $1.6n.04 1745 MAIN ST - SERVTHRU 4-12- $112.624.45 . Pay Pay Check Soc Check Check Year Group Period # Employee # Employee Name Date Amount 2004 01 8 007579 000000026 PALZER. PAUL J. 412212004 $1.989.37 2004 01 8 007580 000000093 STEPHAN. KIM 412212004 $1.010.71 2004 01 8 007581 000000094 MOORE-SYKES. KIMBERLAI 412212004 $1.802.50 2004 01 8 007582 000000098 PAULSETH. ELLEN 4122/2004 $1,438.38 2004 01 8 007583 000000091 MCPHERSON, JOEL 412212004 $1.359.83 2004 01 8 007584 000000075 PETERSON. TEDD 4/2212004 $1.603.01 2004 01 8 007585 000000069 BENDER, TERESA 4/2212004 $1.042.04 2004 01 8 007586 000000080 SWEENEY, KRISTEN 4122/2004 $853.45 $11.099.29 Centennial Fire District Check Register 4/19/2004 The disbursements listed below are submitted by the Centennial Fire District for your approval: DATE 4/1612004 4/16/2004 4/1612004 4/1612004 411612004 4/16/2004 4/1612004 4/16/2004 4/1612004 4/1612004 4/1612004 4/1612004 4/16/2004 4/1612004 4/16/2004 4/16/2004 4/1612004 4/1612004 4/1612004 CHECK# NAME 14204 14205 14206 14207 14208 14209 14210 14211 14212 14213 14214 14215 14216 14217 14218 14219 14220 14221 14222 ACCOUNT Armor Security, Inc. City of Lino Lakes Comfort Plus Heating & Cooling GT Tool Corporation International Assn. of Dive Rescue Janet Haapoja Lottler Business Systems Orkin Exterminating Owest Sam's Club Viking Office Supplies VoJuteer Firefighter's Benefi1 Assn. Xcel Energy Fire Engineering Milo Bennett Superior Ford, Inc. North Metro Media Center Image Printing & Graphics Designer Sign Systems, Inc. 42110 - Other Maintenance 41000 - Payroll Expense 42110 - Other Maintenance 42130 - Equipment Expense 42200 - Dues and Memberships 42180 - Office Supplies 42180 - Office Supplies 42110 - Other Maintenance 42240 - Telephone 42180 - Office Supplies 42180 - Office Supplies 42200 _ Dues and Memberships 42254 - Station 2 - Electric 42210 - Subscriptions 42000 - Vehicle Maintenance 11100 - Equipment - Fixed 42130 - Equipment Expense 45010 - Safety Camp Expense 42130 - Equipment Expense lofl AMOUNT 545.01 48602.93 1006.03 1019.72 25.00 13.15 47.80 56.23 187.90 216.12 270.89 274.00 482.85 99.75 28.50 25,780.00 5,108.40 55.41 ~ $83,867.69 CENTENNIIU.LAKES POLICE DEPT Check Register POLICE GL GL Posting Period(s}; 04104.04104 Check Issue Date(s}: 0410912004 - 04113/2004 Pe, Date Check No Vendor No Payee Invoice Description Inv Amount 04.<l4 04113104 4652 140330 RON NELSON REIMB FOR PRINTER 221.31 M 04.<l4 04113104 4653 180480 BRENT ROOS FlOOR CLEANING 71.50 M 0014 04113104 4854 120331 LEAGUE OF MN CITIES INS TRUST VIORKERS COMP 35,210.00 M 411104-111105 04.04 04113104 4S55 60100 FBINAA NORT~ST CHAPTER FBI CONFERENCE 525.00 M 04.04 0411_ 4856 40345 DEPUTY REGISTRAR#150 FORFEITURE 2002 CHEV 27.00 M TAHOE Totals: 35,854.81 Page: 1 "", 15, 2004 04,27pm M = Manual Check, V = Void Check 1- __ , .1 ervi{{e ~ j~\~ . STAlE OF MINNESOTA COUNTY OF ANORA CITY OF CENTERVHLE NOTICE OF PUBUC BEARING REQUEST FOR STREETIEASEMENT VACATING THAT SECTION OF MILL ROAD/EIGHTH STREET (THE PORTION LAYING EASTERLY OF LOT 1, BLOCK 2, WESTERLY 9F WT 13,BWCK 1 PElERSON'S ADDmON TO CENlERVILLE AND LOCAlED SOUTH OF THE SOUTHERLY RIGHT OF WAY LINE OF HUGO ROAD TO THE SOU'JHERLY BOUNDARY LINE OF THE PLAT OF PETERSON'S ADDmON TO CENTERVILLE - 150' X 66') LOCATED IN THE CITY OF CENlERVILLE, ANOKA COUNTY, MINNESOTA. THE pUBUC HEARINGS WILL BE HF.T,O' BEFORE BOrn THE PLANNING AND ZONING COMMISSION AND CITY COUNCIL NOTICE IS HEREBY GIVEN, that the Planning and Zoning Commission and the City Council of the City of Centerville will consider the street/easement ~cation request from submitted by Mr. Peter (Clay) Alcock, 1806 Main Street. Mr. Alcock has requested that the City consider vacating this street easement due to the fact thai: the ~ has never been constructed and is not anticiP!lted to be constructed in the near future. The meeting is scheduled for Tuesday, April 6, 2004 and Wednesday, April 14, 2004 respectively at 6:30 p.m. or shortly thereafter. The purpose of the meeting is to ascertain public input regarding the above request, the possibility of granting the vacation and the adoption of the r~lution below. 1 WHEREAS, upon the request of both owners (1798 & 1806 Main Street) at different times and the consideration of the Planning and Zoning Commission and City Council; and WHEREAS, Minnesota Statute Section 412.851, entitled "Vacation of Streets," authorizes the City Council of a statutory city by resolution to vacate any street on its own motion; and WHEREAS, the City of Centerville is a duly incorporated Statutory City; and WHEREAS, a public hearing was held on April 6 and April 14, 2004, which was preceded by two weeks' published and posted notice, to consider of the vacation of the section oflocated in the City of Centerville, Anoka County, Minnesota; and . WHEREAS, written notice of said public hearing was mailed to each property owner affected by the proposed vacation at least ten days prior to the hearing (See Attached); and WHEREAS, the City Council of the City of Centerville declares that it has been determined after due consideration that is in the public interest to vacate that 'section of Mill RoadlEighth Street (the portion laying easterly of Lot 1, Block 2, westerly of Lot 13, Block 1 Peterson's Addition to Centerville and located south of the southerly right of way line of Hugo Road to the southerly boundary line of the plat of Peterson's Addition to Centerville - 150' X 66') located in the City ofCentervi1le, Anoka County, Minnesota. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of - Centerville hereby vacates that section of Mill RoadlEighth Street (the portion laying easterly of Lot t, Block 2, westerly of Lot 13, Block I Peterson's Addition to Centervi11e and located south of the southerly right of way line of Hugo Road to the southerly boundary line of the plat of Peterson's Addition to Centerville - ISO' X 66') located in the City ofCentervi1le, Anoka County, Minnesota. ADOPTED BY THE CITY COUNCIL OF THE CITY OF CENTERVILLE TIllS DAY OF , 2004 APPROVED: Terry Sweeney Mayor, City of CenterviJle Teresa Bender Clerk, City of Centerville The City Hall is located at 1880 Main Street, Centerville, Minnesota and is ADA accessible. ReqUests for hearing assistance devices or a sign language interpreter must be received before 4:00 p.m. April 2, 2004. All persons interested are invited to attend and to be heard. ., You may contact the City Clerk's office at (651) 429-3232 or by facsimile (651) 429- 8629 if you need additional information. If you desire, you may email: ksykes@centervillemn.com or tbender@centervillenm.com.with questions or concerns. This notice is also available on the City's web site: www.centervi11emn.com. March 8, 2004 Teresa Bender, City Clerk Published in the Quad Community Press on March 23 & 30 and April 6, 2004 L_____ _ _ _ _ . , J' . i . 1 ~ '. . . . '~JuR- ~ .f) L____ ___n _ _ _ " 1800 Main Street 0en!eM1le, Miromola 55038 (651J429-3232 RECEI\IEll OF AMOUNT a.;.;n;,;;,;, AIcook .. $500.00 1/l1J6 Main Street MN_ , FOR: _. -. -. ~ ~ -- Street_ Escrow CHECK' COSh '::;j. P. .J SURCIlARGE i.1l~ , - ,- .. , ff'( T""""ihnhr llIon:h" 2004 ReceIpl' 9286 .. , , , , I ; f erviCCe 'Estafj{isftd 1857 . 1880 Main Street . Centervi1fe,:M!J{ 55038 (651) 429.3232 .:fa?\. (651) 429"8629 AFFIDAVIT OF MAllJNG PUBLIC HEARING NOTICE State of Minnesota) Connty of Anob ) City ofCenterville) I, Teresa Bender, belng first duly sworn, depo~ and says: I am a United States citizen, over twenty-one (21) years of age, and the City Clerk, II of the CitY ofCenterville, Minnesota. . . On April 1, 2004, acting on behalf of the said city, I deposited in the City of Centervi1le's 1IUIil box, copies of the attached notice of Public Hearing Notices for the Street Vacation of Mill Road/8th Street Extension requested by Mr. Clay Alcock, enclosed in envelopes, with postage. thereon fully prepaid, addressed to the following , persons at the addresses appearing opposite their respective names: NAME ADDRESS See Attached There is delivery service by l!~ted States!P~l ~een ~ place of m;liling and the places so addressed. ('~~~~ '"'" Teresa Bender, City CIerI- Subscribed jUld sworn to before me tqis 1st day of April, 2004. El~J.PAU!.SETH . ~ NofAAltPlJBUC. MINNESOTA My CommbsIonepmJan. 31. 2008 Notary Public . ., . . FIRST NAME LAST NAME HOUSE # STREET THOMAS DUPRE OR CURRENT 1781 MAIN STREET TOM THUMB OR CURRENT 1801 MAIN STREET CURRENT OWNER 1825 MAIN STREET LAWRENCE PERRON OR CURRE~ 1798 MAIN STREET CLAY ALCOCK OR CURREI\ 1806 MAIN STREET CARL BUECHLER OR CURR 1812 MAIN STREET GlADIS JOHNSON OR CURRE 1814 MAIN STREET DAVID WEST OR CURRENT' 1824 MAIN STREET RICHARD ROBlSCHON OR CUR 1832 MAIN STREET CURTIS & IQ:LL1E NYMAN OR CURRENT 7092 DUPRE RD STEVE KEENAN LISA PRIEST OR CUR 7088 DUPRE RD WILLIAM PRATO OR CURRENT 7084 DUPRE RD PATRICK DUPRE OR CURREN"T 7080 DUPRE RD MICHAEL & VIRGINIA CARNEY OR CURREr.. 7064 DUPRE RD CURT & KRIS STIEBLER OR CURRE 7076 EAGLE TRAIL GEORGE & BARB GIBSON OR CURREN 7074 EAGLE TRAIL JOHN & KAY OLSON OR CURREN"T 7070 EAGLE TRAIL ROBERT & PAULA ROSlANSKY OR CUR 7068 EAGLE TRAIL ROBERT & REBECCA DEWIDT OR CURRENT OWNEI 7062 EAGLE TRAIL NATHAN & NIKKI NEWMAN OR CURRE 7060 EAGLE TRAIL DOUG & MARY FREDRICKSON OR Cl 7055 EAGLE TRAIL STEVE HARDING OR CURRE 7058 EAGLE TRAIL . KRISTEN TAYLOR OR CURREN 7054 EAGLE TRAIL BILL & DOREEN REINHARDT OR CURl 7052 EAGLE TRAIL RICHARD & MARGARET SARGENT OR CURRE 7130 MILL ROAD TERRY & DORI OBERG OR CURREN' 7138 MILL ROAD L_____ __ ST. GENEVIEVE'S CEMETERY CIO ST. GENEVIEVE'~ THOMAS VALOIS OR CURRENl KEN & CINDY HAWKINS OR CURRE . 7087 GOIFFON ROAD 1824 HOULE CIRCLE 1828 HOULE CIRCLE t STATE OF MINNESOTA COUNTY OF ANOKA CITY OF CENTERVILLE NOTICE OF PUBLIC BEARING LOT SPLIT AND SITE PLAN REVIEW REQUEST FROMMR. RICHARD DAVIDSON, OPTION TO PURCHASE, 1337 MOUN}) TRAlL (pIN #R15-31-22- 34-0017) FROM ONE (1) PARCEL INTO THREE (3) PARCELS PER ORDINANCE 4 REQ1lIREMl!:NTS. BOTH THE PUBLIC HEARINGS WILL BE lIET.D BEFORE BOTH THE CITY COUNCIL; HOWEVER, THE PLANNING AN>> WNING COMMISSION WILL CONSIDER THIS ITEM AT TIU!;m APRIL 6, 2004 REGULARLY SCB):DULED MEETING NOT IN .t:\.PtrnL.IC HEAluNGFORlJM DUE TO PUBtISBlNG REQUlREMENTS AND THE SUBMISSION OF THE APPLICATION NOTICE IS lmRF.BY GIVEN, that the Planning and Zoning Commission and the City Council of the City of Centerville will consider the lot split alid site plan review request fronl Mr. Richard Davidson, Option to Purchase, 1337 Mound Trail Mr. Davidson is requesting that the Planning and Zoning Commission and CoUl,)Cil consider splitting the eXisting approximate 2.17 acres into three (3) p~ls. One (1) plircel28,200', one (1) parcel 29,200' and one (1) parce123,700'. A twenty (20) foot easement would be given from the front lot to the rear lots for access. TheIDe<'I1ng1! are 8l;heduledfof Tuesday, April 6, 2004, Wednesday, April 14 (public hearing) and April 28, 2004 (public hearing) respectively at 6:30 p.rn. or shortly thereafter. -Please remember that the April 6, 2004 meeting of the Planning and Zoning Commission is not a public hearing. The pmpose of the meeting is to ascertain public input regarding the above request and the possibility of granting the lot splits. . The City Hall is ADA accessible and located at 1880 Main Street, Centerville, Minnesota. Requests for hearing assistance devices or a sign language interpreter must be received before 4:00 p.rn. April 2, 2004. All persons interested are invited to attend and to be heard. You may contact the City Clerk's office at (651) 429>-3232 or by facsimile (651) 429- 8629 if you need additioDal information. If you desire, you may emai1: ksykes@centervillemn.com or tbender@centervill~.com with queStions or concerns. This notice is alsollVliilable on the City's web site; w'ww.centervillenin.com. e March 24, 2004 Teresa Bender, City Clerk Published in the Quad Community Press on March 30 and April 6 & 13,2004 , , '---~---:""'I---~ '~ .~ \ ~., \ I \:~ \,-, ~ '/ '\ \ ~. , ~R "AO \ ~~ \ \ \ \ ~ _-1--.:--- ~ \ ,;. \ - - ;;:::-- b f--~r~L~~ . \ \ ~\ ~ 407 ~ UI4'o q \ \~, ~ \ , \ \ '4 \ \ \ \ \ o \' \ Iq' \ , \ . r<' \. \. \" ~ ' ~. :z: \ '~ ~ 0 , . J. ' i;i1l. ---\. \ ,l If. \ ;'r<' '" ~\ \ \ ~\ :;0 \ \ .-- \ ...... Ii ~ '~\ " ;''a_ I , , ~ r:' " ,- h- \t~i r )>\ ~.r<' W. 1 \ ~ l.\~. \ \' '\'e \ ' ".P" \ \ ?' \ (1)\ l t"'1 \ . \ \ \ \ \ . \ \ \ \ \ \ -, I!! \ \ /I!! 4, \ f \.\ ISi \ \ \ i! ^" ,.2 I r f-J ~ ~~ ~~ , ' ~ ~. ~.,. ,~ ~.;~. II (,'II',IJ {f i I ,. I "1' t I ~ I idifl ~ l J Ii rllil if f , >, I.. if i I; ii11i !Il I 'Ial i '-.. r J 1,'ii J ..~.;., i Ifl I , f Jrili 1 rhl j . !i "~i;. s () z Z o _ '" --; ~ -< .-,~ r- ... I"'l s:: )> 'U g ':,' .. ~ 11> ~ 1~....r ,I .... , , , , , ; l!' " OJ 3. , i ~: ..: i iB. ~p Ii' I i~ o 2004" - 3:1spm"- US 322 ~ ~ lskprpj\DAVJ 4-714 \dwl1\PSI1E'..(Iwq Hr r~ '"', 2: i -3- ~ . f!.f I !d' ~f4~ ,loK filf .[J; Ifii . [ I ~ Qt g: t~ W 6 z !i ~ ! ~ l.'2 l Ii , ~ " tit d3l" 'f ,If fr....... f it Iff.... . e l_ I ervi{{e 18809;(ainStreet . Centeruiffe, 'Jtf9{ 55038 'Esta6Eisfiet{ 1857 CITY OF CENTERVILLE (651) 429-3232 .!Fa;r. (651) 429-8629 APPUCATION FOR LOT SPUTILOT COMBINATION/REWNING ~T COMBINATION: _ REZONING: Anyaddiliona1 costs incurred fur FEE: BJl!! + "'lgin~ legal fees, publication or otherl.......~........as DATEPAID:3- c94~ a.ootf 5~3/-.?1-: ~11 SIZEOFPARCEL(S): .">66: Mpt.2A ~V~V~ i>~ 8-15'-&OOtf PROPERTYOWNER: ~5%u..A- a.N:l PHONE#: 6~1- '-P,;;,q,_ ~b I l-S-R-1>U)( FEE'OWNER: f0 Ctf1:\-Rn 1)/W I b,; I)fJ ADDRESS: (J.D. 00)'. Ig"'l .MMul1C.~l./')} MAl .,,68lR~ APPLICANT'S INTEREST IN PROPERTY: FEE OWNER LEASE HOLDER CONTRACT PURCHASER V OPTION TO PURCHASE < DESCRIPTION OF REQUEST: fIlFfU+ 5uY<-v E!:\f -W cSUPJD/ V I t:>~ 'L.Dr P (Zov I n60 / ~ pf-ltr-( . REASON FOR REQUEST: J-.o-r SUfbDIV7S/~ PEt:;> .<<-1=124 6 U R..V e::y "l:>A"n::D <3 - US - <:),,190 <f "iftnw6 () V~<'51 =1:> /..Dr ..fJ()R.CkPr6E!::12.. IU()()/"() uV"'= IT' 'fIl)P,Olll'lM p<'P zoNmG . p.~~() i Q~ ~13 . ~~:ree, I mWsmnd dmno~ will Ke:::m~ m any~ Sigiuuure of Applicant Signature of Property Owner ..:)- .;z.l{- a-OO,/ Date ,,.," :'.; , . Addendum No.1 to Purchase Aereement . Legal Description THAT PART OF LOT 14, AUDITOR'S SUBDIVISION NO. 46, REVISED, ANOKA COUNTY. MINNESOTA, DESCRIBED AS BEGINNING AT THE NORTHWEST CORNER OF BLOCK I, LEROUX ADDITION; THENCE WESTERLY ALONG THE WESTERLY ExtENSION OF THE SOUTHERLY RIGHT OF WAY LINE OF MOUND TRAIL AS SHOWN ON SAID LEROUX ADDmON 184.36 FEET; THENCE SOUTHERLY Ai'IT> PARALLEL WITH THE WEST LINE OF SAID WT 14 TO THE NORTHERLY LINE OF THE PUBLIC ROAD (NOW VACATED) AS SHOWN ON SAID AUDITOR'S SUBDIVISION NO. 46, REVISED; THENCE EASTERLY ALONG SAID NORTHERLY LINE TO THE WEST LINE OF BLOCK I. SAID LEROUX ADDITION; THENCE NORTHERLY ALONG SAID WEST LINE OF BLOCK 1 TO THE POINT OF BEGINNING. TOGETHER WITH PART OF THE ADJACENT V ACA lED ROAD. ." t "'~"" - "!it f ,I .1 \!I ,-. - . . ,- .. '.-- ~. , , '!$ . i I.r ~ .. .f'- .. --, .. .... . , .. , I .' '. ..' . . , t " .~, , ~-,. . ~ --' .. ... '," ',. : i '. .. :. ~: , I .- .. - r_ , I.... ,-: : ";~, }. '.:' . , , '~ ': . . i 'I'- ",.. .'.' . - '-'. ",... .. ,. ~ ....;.:_.v:.. :;' :~~<:.~,;~..~ ;;:. ~-t.":",..<~;,:;- (. " .:(~t. . . ..~..'.~. :~t..~~ .' , -'t >>~~ "i: $ ~ . .. ',' ~. :~ inJ~l - . ',' ,I rti~..:- ';'<i~:{.":>:,~ )....: ~~9.M! . .;:.. ~ ~~\,":~f;,~-- .....>'!\.::I.~~"~~f;";;f. '.' .~~"'$';lSil~..~ -~~'Q;' ...'~. .... ....i.".,::.~,f... " :~~il~~~:';";. ~M;);',~Qaa<l\J{lfijjt,Qefi~ ,,'USOlili .: . ~, '~",.o,.~., "':.~.".-:_'F'~'""~",:";'":,:-~:",:<>,,,,,~,.,..,,,.,....,~<!.!.,~."'..-...._.~ .,~ ""':';~',:....: <.' . ....":'""" '"'''-'~7'''':'''-' l \ ervi[[e 1880 !Main Street _ Centerviffe, M!J( 55038 (651) 429-3232 -:Fa:( (651) 429-8629 AFFIDAVIT OF MAILING PUBLIC HEARING NOTICE State of Minnesota) C()onty of Anoka ) City of Centerville) 1, Teresa Bender, being first duly ~om, deposes and saxs; I am a United States citizen, over twenty-one (21) years ofilge, and the City Clerk IT of the City of Centef\Tille, Minnesota. ' On April 1, 2004, acting on behalf of the said city, I deposited in the City of Centef\Tille's mail box, copies of the attached notiCe of Public Hearings for Lot Split and Site Plan Review Request from Mr. Richard Davidson for 1337 Mound Trail, eJ).~ed in envelopes, with postage thereon fully prepaid, addressed to the following persons at the addresses appearing opposite their respective names: NAME ADDRESS See Attached \ There is delivery service by United, s~ dre pb<e of::, ng and the places so addressed.' C ~, ~ a., . Teresa Bender, City Clerk Subscribed and sworn to before me this 1st day of April, 2004. . aJ..EN J. PAULSETH ' R6tARr l'USlJC. M1NIlESOTA ' MyCclll...r"ll"ExphsJan. 31. 2008 ~~, NotaIY Publi . , Table1 3/3112004 ;. ;"..Ib.;"'.;. . h.' Fieldf",.:' L(,; Field.:!"",:' I. ,'Fielcl3 ,. "';'. Fiel(l4',,: . Field5 ". 1 R.E. !AlVids~>n or Current Own 1299 Mound Trail 2 Mr. & Mrs. Thomas Weed or Curre 1305 Mound Trail 3 Mr. & Mrs. R.E. Leroux or Curr .1337 Mound Trail 4 Mr. & Mrs. Angelo stella or Curre 1321 Mound Trail 5 Ms. Pearl Leroux or Curr 1337 Mound Trail 6 Mr. & Mrs. Theodore Gonslor or Curr 1343 Mound Trail 7 Mr. & Mrs. John Fitzgerald or C 1355 Mound Trail 8 Mr. & Mrs. Neil Harvieux or Cu 1369 Mound Trail 9 Mr. John Thill or Current 1375 Mound Trail Page 1 Mr. and Mrs. John Fitzgerald 1355 Mound Trail Centerville, MN 55038 April 13, 2004 Centerville City Council Members, We are writing in regard to the proposed lot split and site plan request from Mr. Richard Davidson, for property at 1337 Mound Trail. Our only concern includes placement of the homes that will be along the lake. We would appreciate the new homes lining up with the existing homes east of the property, to preserve the unobstructed view of the lake for all property owners. We are confident that the Planning and Zoning Commission will also ensure proper water run off from the new construction, as well. Thank you for requesting and reviewing our input as Mound Trail continues to be developed. We look forward to welcoming new neighbors. Sincerely, ~GtJ~~ Angel and John Fitzgerald 1355 Mound Trail Centerville, MN f . ervi[[e MEMORANDUM DATE: April 28, 2004 TO: Honorable Mayor and Councilmembers FROM: Kim Moore-Sykes, City Administrator RE: Late Offer for Public Property ......................................................................... I had a call from Mr. Sean Coatney, Equity Commercial Services, representing his brother who owns the property that Mueller Pipeline leases, requesting that they be allowed to make an offer on the property that Dennis Shudy is in the process of purchasing from the City. Staff explained to Mr. Coatney that the papers have been filed and recorded with Anoka County and that the City and Mr. Shudy will be closing on the property this week. Attached is a faxed letter I received on April 27th with Mr. Coatney's offer. He insisted that I submit his offer for the property to the City Council for consideration. Mr. Coatney did acknowledge that this offer is late but continued to insist that the Council receive this fax with his offer of$1.20/foot or $129,600. l - - APR-26-2004 15: 11 ! 651 407 6300 651 407 6300 P.01/01 " .. Coatney Family Properties, L.L.C. 2258 Copperfield Drive Mendota Heights, MN. 55120 April 26, 2004 Office of the Mayor 1880 Main Street CentervilIe, MN. 55038 RE: Property Zoned Pion Cedar Avenue Dear Mr. Mayor, I am the property owner at 6812 20th Avenue South in CentervilIe, MN. Anoka County owns the property directly adjacent to the east of my location. The parcel was obtained on a taX forfeiture. I have just become aware that this property is available for sale. I would be very interested in submitting a bid on this property. My understanding is this property is zoned PI and its use was for a park. It is now available for sale. According to the Council meeting this Wednesday, the current PI zoning is requested to be changed. I am not fully aware of the dimension on the property but my understanding is that it encompasses approximately 2.5 acres. I would be willing to submit a bid for the parcel of $1.201 square foot or approximately $129,600.00 for this property. I look forward to your response. Sincerely, coz: F~ PROPERTOO,L.L.C. B/nt M. do~tn:~---O Managing Partner BMClpc TOTAL P.0l ( . April 28, 2004 Kim Moore-Sykes City Administrator City of Centerville re: Rezoning of Property on Cedar Street, Municipal Border Dear Kim: I understand that CenterviIle plans to rezone a two-acre property to allow for a concrete plant on the site. Ibis site is on Cedar Street, which forms the Centerville/Lino Lakes municipal border. The Lino Lakes City Council has not discussed this proposed project. I heard about it from a Lino Lakes resident and, as you know, followed up with a phone call to you. Based on the information you related on the phone, I have the following comments. The Lino Lakes comprehensive plan guides land immediately to the east for industrial use. Currently, the land owner is working with a warehouse/showroom user to develop the site. Our plan guides land on the south side of Cedar S1. for unsewered, low density residential use, which is what is there now. Medium density sewered land use is the plan for lands south of Cedar along the freeway. A heavy industrial use such as a concrete plant poses land use conflicts for both of these uses. Such incompatible land uses should not be located on abutting properties. The only access to the site is Cedar Street, which is a gravel road. It is not constructed to accommodate large vehicles such as concrete trucks on a regular basis. If this site is to be used for a concrete plant, this road should be improved accordingly. Improvement of Cedar Street will require a cooperative agreement between the two municipalities. Concrete plants pose the possibility of processing waste water being discharged into the environment. The area includes numerous wetlands and Clearwater Creek. Stormwater management should be examined carefully to protect surface and ground water. Thank you for the opportunity to comment on behalf of the City ofLino Lakes. Please keep us informed on the status of this project. Sincerely, Jeff Smyser City Planner City ofLino Lakes DETAIL OF PROPOSED LAND USE MAP L1NO LAKES COMPREHENSIVE PLAN Page 1 of1 ; Kim Moore-Sykes From: Dawn Bugge {dbugge@ci.lino-Iakes.mn.us] Sent: Wednesday, April 28, 2004 3:26 PM To: ksykes@centervillemn.com Subject: Public Hearing Tonight Ms. Moore-Sykes, Attached is a letter from our City Planner, Jeff Smyser, regarding the public hearing this evening. Please let me know that you received this message and attachment. Sincerely, Dawn L. Bugge Community Development Secretary City of Uno Lakes 600 Town Center Parkway Uno lakes, MN 55014 Ph: 651-982-2422 Fax: 651-982-2499 E-mail: dbugge@cUino-lakes.mn.us 4/28/2004 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF CENTERVILLE NOTICE OF PUBliC HEARING REQUEST FOR REZONE FROM PI-PUBLIC-SEMI PRIVATE TO 11 - INDUSTRIAL AND A COMPREHENSIVE PLAN AMENDMENT TO MODIFY THE ZONING FROM CITY PARKS TO INDUSTRIAL. THE PUBLIC HEARINGS WILL BE HELD BEFORE BOTH THE PLANNlNG AND ZONING COMMISSION AND CITY COUNCll.. NOTICE IS HEREBY GIVEN, that the Planning and Zoning Commission and the City Council of the City of Centerville will consider the rezone and corresponding Comprehensive Plan Amendment as requested by Mr. Dennis SOOdy. Mr. SOOdy currently is the contract purchaser of said property. The meetings are scheduled for Tuesday, April 6, 2004 and Wednesday, April 14, 2004 respectively at 6:30 p.rn. or shortly thereafter. The pwpose of the meeting is to ascertain public input regarding the above request and the possibility of granting the requested rezone and corresponding Comprehensive Plan Amendment. Both meetings will take place in Council Chambers located at 1880 Main Street Centerville, Minnesota 55038. PIN #R24-31-22-33-0002 The City Hall is ADA accessible. Requests for hearing assistance devices or a sign language interpreter must be received before 4:00 p.m. April 2, 2004. All persons interested are invited to attend and to be heard. You may contact the City Clerk's office at (651) 429-3232 or by facsimile (651) 429- 8629 if you need additional information. If you desire, you may email: k&ykes@centervillenm.com or tbender@centervillemn.com with questions or concerns. This notice is also available on the City's web site: www.centervillenm.com. March 12, 2004 Teresa Bender, City Clerk Published in the Quad Community Press on March 23, 30 and April 6, 2004 I _ -- O~ 11 t ~ . ~oy l.. . ~ . .. ~ pAfi?f.. !II c . . ....... - P1 ~-..... "tF' , -,.J ~ ~ -' ~ ..; -.! Existing Land Use Figure 3 \ o 0.25 " 0.5 Miles ReO_ II Comma-CiaI 11- . PubIiClSCIIIIi-.PubIfu o V..-'Agri_ .If school . ~ Hall / " \ \ ~terviffe \!fli..-.. ~ I!l!:Oty..... .--,....,.. ~F1_ IIW"""'" -_.. MUSA III f"ll'8Dcpartmcot . """'" .4/;;.,.- V=Oll J ./ 14 tervi{{e 1880 !Main Street . Centervi!k,!M!J{ 55038 'EstaGfisIiet[ 1857 CITY OF CENTERVILLE . (651) 429-3232 . :J~(651) 429rf629 APPLICATION FOR WT SPLITILOT COMBINATION/REZONING 4" ~. J"-- ~_-6 Any additional costs iDcmred for FEE/J0~ + ==~~fees,publicationor LOT SPLITILOT COMBINATION: REZONING: ~ DATE PAID: STREET LOCATION OF PROPERTY: L,-< r! t!J-Y >' f LEGALDESCRlPTIONOFPROPERTY: ;b/;v d"e. ZY-:::?I-LZ- -Y-/7'Y.J? SIZE OF PARCEL(S): ~d lIe. ......-<.~ 1kff'iR~6WNERd~IA'J ~L<<f PHONE#: 65-(-4'5-1 -f'C7:;zp FEE OWNER:ah u,:" r f 't ,;7 ADDRESS: 0> ~.>- tJ-/1~ fk;'<. <;; ~hCJ ItA b~ )'l'd l c;r . , (' APPLICANT'S INTEREST IN PROPERTY: FEE OWNER t./' CONTRACT PURCHASER LEASE HOWER OPTION TO PURCHASE DESCRIPTION OF REQUEST: ;( -( Z-d"'~ ~-/4z,----? I (b f I REASON FOR REQUEST: {' A"A_Y < (11..-- /" llr't /0/'""7 ?n /P'f;/,;;J~ /.-()f"' 1( 77 ~.'-': ~'4'"L~e fff""'~~" '? By paying the above stated fee, I urnIerstaod that no refunds will be issued in full or in part, at any time, ev' outcome is denial. ~ _ofAppH=< (f~af~ S -If --tJ Y Date l . . 1880 MaIn Street Centerville, Min~ 55038 (651) 429-3232 . RECEIVED OF AMOUNT Mr. Dennis Shudv $273.00 . . FOR: ., .~" .- . - Rezone R"'"uest from P1-11 CHECK # 3287 ~ Street Park SURCHARGE . . BY Tere1IG Bemkr March 11, 2004 Receipt # 9293 ] 1880 fMainStreet . Centerviffe,9If!JI{. 55038 (651) 429.3232 . J"WC(651} 429.8629 AFFIDAVIT OF MAILING PUBLIC BEARING NOTICE :. ~ ., State oCMinnesota) County of Anoka ) City ofCenterville) I, Teresa Bender, being first duly sworn, deposes and says: I am a United States citizen, over twenty-one (2 I) years of age, and the City Clerk IT of the City of CenterviIle, Minnesota. On April I, 2004, acting on behalf of the said city, I deposited in the City of CenterviI1e's mail box, copies of the attached notice of Public Hearing Notices for 'Rezone & Comprehensive Plan for Cedar Street Park and the associated purchase by Mr. Dennis Shudy, enclosed in envelopes, with postage thereon fully prepaid, addressed to the following persons at the addresses appearing opposite their respective names: NAME ADDRESS See Attached There is delivery service by United Stat. es ~een. the place of mailing and the places so addressed. // ~~ ;~ ~ <---..-- , --- Teresa Bender, Crty C erk Subscribed and sworn to before me this I st day of April, 2004. "ELlEN J. PAULSETH :fMlYI'\JBUC. MlNllESOTA ~ .. EaplnlI_~.2008 yJ~ Notary Public Cedar street Park 3/25/2004 .. . ID ..:1 .. Field 1 I Flefd2 I ... Field3 . . .. ... I ....F'ield4 . I> F'ield5 . 1 :Current OWner I 2044iGateway Circle !Centerville , iMN 2iMuelfer Pipelin 6812[- 20th Avenue !Centervilfe iMN 31,Mr. Dennis Shu 6795!- 20th Avenue iHugo iMN 4iRehbine Prope 6805[- 20th Avenue !Hugo fMN 5!Royal Oaks Re 1000iCoUnty Road E IShoreview IMN I 61Cily of Centerv 1880iMain Street ICenterville IMN . Page 1 , April 21, 2004 City of Centerville 1880 Main Street Centerville, MN 55038 Dear Mayor Terry Sweeney Council Member JeffPaar Council Member Tom Lee Council Member Mary Capra Council Member Linda Broussard Vickers: I am writing this letter with regard to the public hearing for the lot split and site plan review of 1337 Mound Trail. My name is Deb Gonsior and I own the property at 1343 Mound Trail, located on the east side of the parcel being reviewed. I am looking forward to having new neighbors and have no problem with the lot split specifically. I do have two concerns that I hope you will consider as you review this split. The first concern is in regard to water drainage. I know this is a concern you hear frequently. This property is no exception. When the 5 lots in the leRoux Addition to the east of this parcel were developed, the Rice Creek Watershed would not allow the elevation of those lots to be raised. Mr. Davidson mentioned he would like to put up a 2 story walkout on one of the new lots, which he thought would require raising the elevation 8 feet to accommodate the walkout. I know there is a law that says you can't cause any water to run onto another person's property. I also know this is a big issue in Centerville and that it does happen. I am concerned that complying with the requirements of the Rice Creek Watershed when we built in 1979 will now put us in jeopardy today. The second concern is in regard to the placement of the homes on lots 2 & 3. As you know, anyone who buys property on Mound Trail is motivated to do so by the lake. This was true when we moved here 25 years ago and it's true today. These property owners want to swim, boat or just enjoy the lake view. The layouts of the homes are oriented to view the lake to the rear of their property. The copy of the plat that you received for review, shows the Stella home to the west, but does not show the home to the east. It would indicate that the proposed homes on lots 2 & 3 line up with the surrounding neighborhood. This is not the case. I have tried to draw in my home to the west as best I can to give you an idea of how the proposed homes fit into the entire neighborhood. I have also included an overhead photo of the homes along Mound Trail as my sketch is only estimated, and the plat only shows one home on each side. I , The point I am trying to make is that we all were required to somewhat line up our homes to present a uniform look from the street as well as not infringe on our neighbor's view and privacy from the back. So far everyone has been respectful of each other that way. The proposed locations of the homes on lots 2 & 3 are significantly closer to the lake than the homes to the east. Those new homes, as indicated on the plat, will be good sized homes at 3250 sq ft. They will block the view and infringe on the existing homes privacy from the back. It doesn't have to be that way. This can be a win win situation. There is plenty of room to feather back the locations of the pads for the homes on lots 2 & 3 and blend in with all of the existing homes - not just the Stella's property to the west. This will not affect the value or marketability of the new homes negatively. The evidence of that is in the variety oflocations right on Mound Trail. Some are closer to the lake, some are farther from the lake, some are across from a bar and one backs up to a busy county road. All of those homes are maintaining a high property value. They also don't infringe on each others privacy or view. I want to emphasize that I am looking forward to having new neighbors and have no problem with the lot split itself if it meets the City's requirements. I also hope we won't be penalized for following the rules when we built. We love it here, have enjoyed many wonderful years here as a family and hope to enjoy many more. If you would like to stop by my home to physically see what I'm talking about, please feel free to do so. I'm usually home by 6 pm weeknights. My work number is 763-488- 7840. My home number is 651-426-3583. Thanks for your consideration. Regards, CD..Jb.~ Deb Gonsior ./' ~ M :r- o 0>"" _,t'" $-v,...) ,"{\..~\l-l..'?l' ~.~ I I I I 1 d w~ X~ ~ . ;=:!:.~ 5::Jc ~2 ~l:i~ ~~a ::JB wl-~ 3t1~ ~>. I I \ I EXISTING \ HOUSE \ \ ---\ ~~~T , 2~DT 3 9,200 sq. f , s> , , , , , ~ ----t------ 100---------- " " ~~\---- ~-i,~~ii A [J \ \ " \ __ __ 1- -:-. , __ __ r-: _ ......S1......-.~ ~ :::t,:::'1:::-.-"""-I'- - \02. ./ ,,~ ,A..~'~~ //~ 29 //~ .O,D <,S<~. -- ~. ~ -- -- --~~ .-------- -- -~------- -- -.'-- ---- "" Sl'>\'\\.~- __ -0 -.-' ~U'" ---- --- --~ ------ - -- =-=-= ~- =--=-= -- =-- ----(j'l o " :':~'.:'\:: J(~i ':~II'~ :~ !lID !If! 0- -tr N --[J ~ -- r-1< r ./ SL"f LaNE: Of - """"'"'\'34 \64 ~ 20 " " ~ -N\1 BLO~Ii:f€R or ADDtTIdN LEROUX j ~"E \ ~"' ADDITJO~ LEROUX r-.. 0> " 3 'PAD ..2Sll sq. ft. PAD 3,Z,Olsq. ft. ro L0 (\j ~ o LOT 2 -- 23,700 sq. ft. ___<;,:a------- ':( (j) ~ ~ ~ c tJ\ 1 ~ R \J \ LI..t:- L/>.. \<- ~ ".> ,..... ""'" '$'~".$.' ~"""'~ ,",". ,~ '= ~ keyhole Lions Club of Centerville April 23, 2004 City Council City of Centerville 1880 Main Street Centerville, MN 55038 Honorable Mayor & Council: On behalf of the Centerville Lions, I bring forth the following proposal for yom consideration. At the present, the city owns a two-car garage at 7026 Centerville Road located on the property of the Chauncy Barett Gardens. The Centerville Public Works department presently uses this building for storage. This building will have to be moved or demolished in the near future with the 2nd addition to the Chauncy Barett Gardens being added to that site. The Lions of Centerville would like to have that garage and move it off of the site to the Centerville Public Works department location. I have met with and talked with your Public Works Director, Paul Palzer and we have walked the site at the CPWD and tentatively picked a location that is agreeable to him and would blend with other buildings located there. The Centerville Lions would move the garage, place it on a cement slab, paint the garage, and reroof it, to match the Centennial Fire District Garage. We would also replace the overhead doors and the side entry doors to blend with the CFD garage. These doors need replacement at this time. We ask for your approval of this request (Le., allowing the Centerville Lions to have the building, move it to the CPWD property, place it at a location determined proper by the CPWD and do the required repairs needed. We also ask that building permits be waived for our non-profit organization. The Centerville Lions have been getting more and more involved with doing community projects and a need for proper storage of its property is required. In the past year we have provided over $8000.00 in donations, to the school district, local food shelves, Lions International eyesight projects, just to name a few charities. By having our own welI maintained equipment, we don't have to rent items to sponsor various events, which will further alIow more donations to the community. Any further information or assistance on this matter, I can be reached at (651) 429-2140. Thank you for your consideration on this matter. Respectively, .- -~ " ~".~-. '''--.. ./ ./"---~ .'~.d" "-.~/ c. .e:",-\.A- Thomas D. Wilharber Treasurer Centerville Lions f' Page 10f2 . Teresa Bender From: Peterson, Tom W [Ipeterson@bonestroo.comj Sent: Friday, February 06, 2004 12:54 PM To: T Wilharber Cc: Teresa Bender Subject: Municipal Improvements to St Genevieve's property Hi Tom, Thanks for the information on your previous assessment for water main. I'm not certain at this time what the City wants to do with the proposed water assessment for the main along Lamotte and Heritage. Since it appears the church is planning to develop the property in the foreseeable Mure, we will need to adjust that number. In the Feasibmty Report, I figured 8 equivalent residential units for the church property. Based on the preliminary plan you showed me at the Information Meeting, we would likely not charge for 8 units. The other charges (street, storm, curbing) would still be assessed for the proposed improvements along both streets. Again, since I am assessing on an equivalent lot basis, there is a total of 8 equivalent residential lots that would "lit" along both streets. One ofthose lots would be a comer lot at Heritage and Lamotte. Like other areas in the city, a comer lot counts as 1.5 units for the street portion of the assessment. In this case, I did not even use the 1.5 factor and kept your number at 8 units. Therefore, the storm unit assessment of $946 X 8 = $7,568. Street = $2,719 X 8 = $21,752. Curb = actual frontfootage X $13.12 per foot'" $11,808. Call me if you have any questions. In addition, could you please send a copy of the proposed development for the property? We are trying to size storm sewers along Heritage Street and need any Information you have on drainage. Thanks, Tom Peterson City Engineer Bonestroo and Associates ----Original Message---- From: T Wilharber [mai/to:tdwilharber67@msn.comJ Sent: Wednesday, February 04,20043:20 PM To: Kim Sykes; Peterson, Tom W Cc: St Gens; T Fitz; Sonya Murray; Anderson; Becky Nis; David Gagnon; Jim McGeary; Terry Sweeney; Theresa Bender; Tom Subject: Munidpallmprovements to St Genevieve's property To: City of Centervi/le: In 1998, the parish of St Genevieve's was assessed $13,279.36 for a water improvement on the east side of our church's property (along Centerville Road). This was at the time that water was extended from Park View (Richard Carlson's development) to the north for the Chaunchy Barrot Gardens and then south along Centerville road to Hunter's Crossing (Richard Carlson's development). This assessment has been fully paid off when it was brought to our attention in June 2003, the amount was paid on 30 Jun 2003. With the fatest municipal improvements recommended by the city this coming summer, the parish has again been assessed for PIN# R23-31-22-23-0060 for a total of $69,632.00 (Breakdown as follows: Water $28,504.00, Storm $7,568.00, Street $21,752.00, Curb & gutter $11,808.00, Sidewalk $ O. 2/6/2004 .. Page 1 ofl '0, Kim Moore-Sykes From: T Wilharber [tdwilharber67@msn.comj Wednesday, February 04,20043:20 PM Kim Sykes; Tom Peterson St Gens; T Fitz; Sonya Murray; Anderson; Becky Nis; David Gagnon; Jim McGeary; Terry Sweeney; Theresa Bender; Tom Subject: Municipal Improvements to St Genevieve's property Sent: To: Cc: To: City of Centerville: In 1998, the parish of St Genevieve's was assessed $13,279.36 for a water improvement on the east side of our church's property (along Centerville Road). This was at the time that water was extended from Park View (Richard Carlson's development) to the north for the Chaunchy Barrot Gardens and then south along Centerville road to Hunter's Crossing (Richard Carlson's development). This assessment has been fully paid off when it was brought to our attention in June 2003, the amount was paid on 30 Jun 2003. With the latest municipal improvements recommended by the city this coming summer, the parish has again been assessed for PIN# R23-31-22-23-0060 for a total of $69,632.00 (Breakdown as follows: Water $28,504.00, Storm $7,568.00, Street $21,752.00, Curb & gutter $11,808.00, Sidewalk $ O. As one of the two trustees of the parish and a member of the administrative board, I feel this amount for the water service is like a double taxation of our property. I also question the charges for street, curb, gutter and storm as, it looks like you are assessing us for frontage on two streets (Hertlage & LaMotte). The full parish administrative council and the pastor Father Tom Fitzgerald asked that I be the point of contact concerning this matter. I wish to bring this to the Cities attention at this time and request a review and explanation for these assessments be explained to the undersigned either before the hearing onthe 11th of February and/or at that meeting. . Thank you for your assistance in this matter. I can be reached at (651) 429-2140 or at 6849 Centerville Road, Centerville, MN 55038. 2/6/2004 a. ervil{e l!IIttOf:{!ditdl8'51 CITY OF CENTERVILLE PREDATORY OFFENDER - COMMUNITY NOTIFICATION POLICY LEVEL n OFFENDER L POLICY It is the policy of the City of CenterviIlelCentennial Lakes Police Department to protect the public by disclosing information on predatory offenders residing in the City of CenterviIle. The extent of the information disclosed/disseminated and to whom is at the discretion of the Chief of Police of the Centennial Lakes Police Department. IL DEFINITION Offenders with an assigned risk level of Level 2 (Moderate risk of re-offending) will be handled in conjunction with the Centennial Lakes Police Department and the Department of Corrections. m PROCEDURE A. All mandatory notification wiIl be handled by the Centennial Lakes Police Department. B. Community Notification - The Centerville City Council has determined that in addition to any notification requirements of the Police Department, it would also be in the best interest of the residents of the City a notification letter wiIl be forwarded via U.S. Postal Service to all residents of the City advising them of the release of a Level IT offender in the area and the link to the Minnesota Department of Corrections web site as soon as practicable. See sample letter attached. Adopted by the City Council of the City ofCenterviIle this 28th day of April. 2004. Attest: Signed: City Administrator Mayor Date Address Address Address Dear Centerville Resident: It has been brought to the City's attention by the Centennial Lakes Police Department that a Level II sex offender bas been recently released in our community. This letter is being forwarded to you so that you may become more knowledgeable and aware of safety precautions that you may utilize to protect you and your family. You will not receive a notice if the offender moves out of the community. The City would like to offer some web sites and organizations that may be able to assist you in gathering information regarding sex offenders and they are as follows: Minnesota Department of Corrections 1450 Energy Park Drive S1. Paul, Minnesota 55108-5219 651) 642-0200 http://www.corr.state.mn.usl Centennial Lakes Police Department 200 Civic Heights Circle Circle Pines, MN 55014 763) 784-2501 http://www.centenniallakespd.coml We would like to thank you in advance for your cooperation in this matter and hope that you take the opportunity to research this issue and contact those departments involved. If you desire additional assistance from the City of Centerville, please contact the City Administrator at (651) 429-3232. Sincerely, Kim Moore-Sykes City Administrator 1 Page 1 of2 , Teresa Bender From: Peterson, Tom W [tpeterson@bonestroo.com] Sent: Friday, February 06, 200412:54 PM To: T Wilharber Cc: Teresa Bender Subject: Municipal Improvements to St Genevieve's property Hi Tom, Thanks for the information on your previous assessment for water main. I'm not certain at this time what the City wants to do with the proposed water assessment for the main along Lamotte and Heritage. Since it appears the church is planning to develop the property in the foreseeable Mure, we will need to adjust that number. In the Feasibility Report, I figured 8 equivalent residential units for the church property. Based on the preliminary plan you showed me at the Information Meeting, we would likely not charge for 8 units. The other charges (street, storm, curbing) would still be assessed for the proposed improvements along both streets. Again, since I am assessing on an equivalent lot basis, there is a total of 8 equivalent residential lots that would "fit" along both streets. One of those lots would be a corner lot at Heritage and Lamotte. Like other areas in the city, a corner lot counts as 1.5 units for the street portion of the assessment. I n this case, I did not even use the 1.5 factor and kept your number at 8 units. Therefore, the storm unit assessment of $946 X 8 = $7,568. Street = $2,719 X 8 = $21,752. Curb = actual frontfootage X $13.12 per foot = $11,808. Call me if you have any questions. In addition, could you please send a copy of the proposed development for the property? We are trying to size storm sewers along Heritage Street and need any information you have on drainage. Thanks, Tom Peterson City Engineer Boneslroo and Associates -----Original Message----- From: T Wilharber [maillO:tdwilharber67@msn.com] Sent: Wednesday, February 04, 20043:20 PM To: Kim Sykes; Peterson, Tom W Cc: St Gens; T Fitz; Sonya Murray; Anderson; Becky Nis; David Gagnon; Jim McGeary; Terry Sweeney; Theresa Bender; Tom Subject: Municipal Improvements to St Genevieve's property To: City of Centerville: In 1998, the palish of St Genevieve's was assessed $13,279.36 for a water improvement on the east side of our church's property (along Centerville Road). This was at the time that water was extended from Park View (Richard Carlson's development) to the north for the Chaunchy Barrot Gardens and then south along Centerville road to Hunter's Crossing (Richard Carlson's development). This assessment has been fully paid off when it was brought to our attention in June 2003, the amount was paid on 30 Jun 2003. With the latest municipal improvements recommended by the city this coming summer, the parish has again been assessed for PIN# R23-31-22-23-0060 for a total of $69,632.00 (Breakdown as follows: Water $28,504.00, Storm $7,568.00, Street $21,752.00, Curb & gutter $11,808.00, Sidewalk $ O. 2/6/2004 ~ PIe 2 of2 As one of the two trustees of the parish and a member of the administrative board, I feel this amount for the water service is like a double taxation of our property. I also question the charges for street, curb, gutter and storm as, it looks like you are assessing us for frontage on two streets (Hertiage & LaMotte). The full parish administrative council and the pastor Father Tom Fitzgerald asked that I be the point of contact concerning this matter. I wish to bring this to the Cities attention at this time and request a review and explanation for these assessments be explained to the undersigned either before the hearing on the 11th of February and/or at that meeting. Thank you for your assistance in this matter. I can be reached at (651) 429-2140 or at 6849 Centerville Road, Centerville, MN 55038. 2/6/2004 ~ ).. Page lof1 ~ Kim Moore-Sykes From: T Wilharber [tdwilharber67@msn.com] Wednesday, February 04, 20043:20 PM Kim Sykes; Tom Peterson St Gens; T Fitz; Sonya Murray; Anderson; Becky Nis; David Gagnon; Jim McGeary; Terry Sweeney; Theresa Bender; Tom Subject: Municipal Improvements to St Genevieve's property Sent: To: Cc: To: City of Centerville: In 1998, the parish of St Genevieve's was assessed $13,279.36 for a water improvement on the east side of our church's property (along Centerville Road). This was at the time that water was extended from Park View (Richard Carlson's development) to the north for the Chaunchy Barrot Gardens and then south along Centerville road to Hunter's Crossing (Richard Carlson's development). This assessment has been fully paid off when it was brought to our attention in June 2003, the amount was paid on 30 Jun 2003. With the latest municipal improvements recommended by the city this coming summer, the parish has again been assessed for PIN# R23-31-22-23-0060 for a total of $69,632.00 (Breakdown as follows: Water $28,504.00, Storm $7,568.00, Street $21,752.00, Curb & gutter $11,808.00, Sidewalk $ O. As one of the two trustees of the parish and a member of the administrative board, I feel this amount for the water service is like a double taxation of our property. I also question the charges for street, curb, gutter and storm as, it looks like you are assessing us for frontage on two streets (Hertiage & LaMotte). The full parish administrative council and the pastor Father Tom Fitzgerald asked that I be the point of contact concerning this matter. I wish to bring this to the Cities attention at this time and request a review and explanation for these assessments be explained to the undersigned either before the hearing on the 11th of February and/or at that meeting. Thank you for your assistance in this matter. I can be reached at (651) 429-2140 or at 6849 Centerville Road, Centerville, MN 55038. ~ 2/6/2004 RICHARD A. MERRILL DARRELL A. JENSEN JEFFREY S. JOHNSON RUSSELL H. CROWDER JON P. ERICKSON mOMAS P. MALONE MICHAEL F. HURLEY DOUGLAS G. SAUTER HERMANL. TALLE CHARLES M. SEYKORA DANIEL D. GANTER, JR BEVERLYKDODGE JAMES D. HOEFT JOAN M QUADE JOHN T. BUCHMAN BGS Barna, Guzy & Steffen, Ltd. ATTORNEYS AT LAW 400 Northtown Financial Plaza 200 Coon Rapids Boulevard Minneapolis, Minnesota 55433 (763) 780-8500 FAX (763) 780-1777 1-800-422-3486 www.bgslaw.com SCOTT M. LEPAK STEVEN G. mORSON ELIZABEm A. SCHAOING WILLIAM F. HUEFNER BRADLEY A. KLETSCHER kRISTI R RILEY WILLIAM D. SIEGEL JENNIFER C. T. SMI1H KARIN E SIMONSON MATTHEW A. KOROGI EDWARD (TED) P. SHEU Of Counsel ROBERT A. GUZY BERNARD E. STEFFEN 1931-2002 Writer's Direct Line: (763) 783-5116 Internet E-Mail Address:jthuliensmith@bgslaw.com April 27, 2004 VIA E-MAIL Kim Sykes City ofCenterville 1880 Main Street Centerville, MN 55038 RE: Vacation of Mill Road Extension / Eighth Street Submitted by Mr. Clay Alcock Our File No. 54783-001 Dear Ms. Sykes: Mr. Clay Alcock respectfully requests that the public hearing on the vacation of Mill Road Extension / Eighth Street be removed from the April 28, 2004 City Council meeting agenda and tabled until the May 12, 2004 City Council meetillg. As you and I discussed previously, Mr. Alcock and Mr. Larry Perron, the owner of the property immediately to the west of Mill Road / Eighth Street, have reached an agreement as to the division of Mill Road / Eighth Street after the vacation by the City of the same. However, Mr. Alcock and Mr. Perron are still in the process of negotiating an easement for Mr. Perron for driveway purposes over the portion of said property which will be owned by Mr. Alcock. We request that the public hearing on the vacation be postponed to give the parties time to finalize their agreement prior to the final approval of the vacation. If you have any questions, please feel free to give me a call. Sincerely, BARNA, GUZY & STEFFEN, LID. Jennifer C. Thulien Smith JTS/mmp Cc: Clay Alcock (via facsimile) Jim D. Hoeft, Esq. Steve Butts (via facsimile) 237787_1 NORTH METRO MEDIA CENTER MEMO TO: OPERATIONS COMMITIEE FROM, HEIDI ARNSON SUBJECf, RESOLUTION REGARDING OPPOSITION TO CABLE RATE INCREASES DUE TO CARRIAGE OF VICTORY SPORTS ONE DATE: 4/27/2004 WE HA VB HEARD FROM MANY ELDERLY PEOPLE UPSET BY THIS LACK OF TELEVISION AVAILABILITY. All of us are concerned about the reduced availability of Twins games on cable television. The North Metro Telecommunications Commission, which is a Joint Powers Organization serving the communities of Blaine, Centerville, Circle Pines, Ham Lake, Lexington, Lino Lakes, and Spring Lake Park, Minnesota in matters concerning cable franchises, would like to share the attached resolution with you along with our concerns for subscribers, as related to potential price increases for cable subscribers due to carriage of Victory Sports One on Comcast Cable. First, a brief background of the situation: · Twins games used to be available to area subscribers, as a part of their Standard cable service, on Fox Sports Net. · Carl Pohlad created a new sports channel. called Victory One Sports and pulled the Twins games off of Fox Sports Net · Mr. Pohlad was seeking approxirnately $2.20 per subscriber per month, and wants the channel placed on the Standard Cable tier, no t a digital tier. · The programming on the channel consists of Twins games, some Gopher sports and a limited number of other teams. Much of Victory Sports' other progwnming is ESPN news, which it carried almost 60 percent of its telecast during one recent week, duplicating a service that is alreatfy available to Comcast customers. · Victory One has refused to look at proposals from Fox to return the Twins games to Fox Sports Net, which reportedly would offer to double the amount the Twins received last year and which Fox says would put the Twins in the top tier of major league teams. · While the Cable Commission would like to see the parties come to some agreement so that Twins games can be available to viewers, they do not want to see the cable rates of all subscribers increase as a direct result. . While our resolution encourages Com cast aod Victory One to negotiate a deal, Comcast has recendy stated that they feel the negotiations should be between FOl< Sports Net and Victory Sports One. The Commission agrees with that statement. Cable rates are already very higb. It doesn't seem right to raise them again so that viewers can watch games they were able to watch at no eJ<tca cost just one year ago. 2 NORTH METRO TELECOMMUNICATIONS COMMISSION RESOLUTION 2004-09 A RESOLUTION CONCERNING ANY INCREASE IN BASIC SERVICE RATES ATTRIBUTABLE TO THE CARRIAGE OF VICTORY SPORTS ONE ON COMCAST'S CABLE SYTEMS IN THE MEMBER CITIES WHEREAS, the North Metro Telecommunications Commission (hereinafter "the Commission") is a Joint Powers Commission organized pursuant to Minn. Stat. ~ 471.59, as amended, and includes the municipalities of Blaine, Centerville, Circle Pines, Ham Lake, Lexington, Lino Lakes and Spring Lake Park, Minnesota (hereinafter, the "Member Cities"); and WHEREAS, Section 623 of the Cable CommWucations Policy Act of 1984,47 U.S.C. ~ 543, as amended, authorizes local franchising authorities, such as the Member Cities, to regulate rates for basic cable service; and WHEREAS, the Commission's Joint Powers Agreement includes the power to regulate rates on behalf of the Member Cities; and WHEREAS, the Commission is certified as a rate regulation authority pursuant to rules of the Federal Communications Commission; and WHEREAS, as a certified rate regulation authority, the Commission is concemed about activities and agreements which may result in increased basic service rates within the Member Cities, since all subscribers in the Member Cities wishing to receive cable service must subscribe to basic service and basic service rates are within the Commission's jurisdiction; and WHEREAS, Victory Sports One ("Victory Sports") is a new regional sports cable network, which is an affiliate of Twins Sports, Inc., the corporate entity that owns the Minnesota Twins; and WHEREAS, Victory Sports owns the broadcasting rights to carry the Minnesota Twins games and select University of Minnesota basketball and football games in 2004; and WHEREAS, Comeast of Minnesota, Inc., the current cable television franchise holder in the Member Cities ("Comcast"), and Victory Sports have been unable to reach a mutually acceptable carriage agreement and, according to reports, they are not expected to reach agreement prior to the start of the Minnesota Twins regular season; and WHEREAS, according to Victory Sports, it has reached carriage agreements with only twenty (20) mostly rural video providers, serving 134 greater Minnesota cities. Victory Sports has not reached agreements with any of the other large metropolitan multichannel video program distributors, such as Time Warner Cable, Charter Communications, Mediacom, DirecTV, or the Dish Network; and l WHEREAS, Victory Sports has indicated that it is seeking to charge Corncast over $2.00 per basic serVice subscriber for the carriage of its programming; and WHEREAS, Victory Sports has stated that it is unwilling to place its programming on any service tier other than the basic service tier; and WHEREAS, the Commission finds that the carriage of all major local sporting events on Comcast's cable system is a need and interest of the Member Cities' subscnbers. NOW, THEREFORE, BE IT RESOLVED by the North Metro Telecommunications Commission as follows: 1. That the Commission opposes any carriage agreement between Corncast and Victory Sports One that would directly or indirectly result in an increase in basic service rates in the Member Cities; and . 2. That the Commission hereby strongly encourages Comcast and Victory Sports One to work diligently to: (i) reach a mutually acceptable carriage agreement that will not directly or indirectly increase basic service rates in the Member Cities; or (ii) enter into other appropriate arrangements for the carriage of local sports programming currently owned or licensed by Victory Sports One, provided such arrangements do not directly or indirectly increase basic serVice rates in the Member Cities. PASSED, ADOPTED AND ISSUED this 17"11 day of March, 2004. NORTH METRO TELECOMMUNICATIONS COMMISSION By: tiY-/~~ Its Chair Attest: #~~ Vice-Chair G:\NOJ1b Metro lOO29\Resoluti.oos\ReSobJti.ao." VICtOIy Sposts.doc. 2 MICHAEL AND KATHLEEN JOHNSON 7046 Brian Dr. Centerville, Mn. 55038 CENTERVILLE, MN. 55038 Home Phone 1-651-426-1217 February 08, 2004 CITY OF CENTERVILLE CITY OF CENTERVILLE COUNCIL MEMBERS; Our names are Michael and Kathleen Johnson. We reside at 7046 Brian Dr.in Centerville. Michael was at your council meeting Thurs. Jan. 29, 2004 regarding proposed improvements to Brian Dr. from Main St. to 150' North of Brian Crt. at that time he was informed that we would have no assessments for this project. We want to be certain that we are not assessed, as our property will not benefit from improvements made. We again bring to your attention that all said improvements around our property have already been made. This is the east side of Brian Dr. up to and including the new culvert over Clearwater Creek. Elevation and Grade have been changed, new curb and gutter installed, water has been brought up into our property and stubbed, sewer is done and a storm drain is installed in the center of Brian Dr. just south of the creek culvert. We request that this information be included in your public record when you order the project. We also would ask that great care be made when you widen the west side of Brian Dr. as we have been dug up on all four sides of our property (sometimes twice) in the last several years.-We allowed the City to use our property to store equipment and as a base for operations when Clearwater Creek and the Culverts were redone. We ask that you use the same consideration when you close off the street, So We don't have traffic using our driveway or property as a place to turn around. Your prompt attention to this matter is greatly apreciated. Thank You; Michael Johnson Kathleen Johnson ,--- .. NORTH METRO MEDIA CENTER MEMO TO: OPERATIONS COMMITIEE FROM: HEIDI ARNSON SUBJECT: 2003 COMMISSION/MEDIA CENTER AUDIT DATE: 4/22/2004 Attached to this memo, please find a copy of the final 2003 Commission/Media Center audit, as reported by Mike Roehl of Muellerleile and Harrington, Ltd. After approving the report, at the April 21" Commission meeting, the group requested that a copy be made aVllilable to your city councils. Please feel free to include the audit in your council packets, if so desired. Thank you. NORTH METRO TELECOMMUNICATIONS COMMISSION AUDITED FINANCIAL STATEMENTS December 31, 2003 and 2002 Kenneth J. Muellerleile, CPA Wayne A. Langer, CPA Michael J. Roehl, CPA Muellerleile & Harrington. Ltd. Certified Public Accountants 2393 Rice Street. Roseville, MN 55113 (651) 481-1128 Fax (651) 481-0982 Mark D. Harrington, CPA Jeffrey L. Pletcher, CPA Gregory W. Heck, CPA INDEPENDENT AUDITOR'S REPORT To the Board of Commissioners North Metro Telecommunications Commission Blaine, Minnesota We have audited the accompanying statements of financial position of North Metro Telecommunications Commission as of December 31, 2003 and 2002, and the related statements of activities, and cash flows for the years then ended. These financial statements are the responsibility of the Commission's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles' used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of North Metro Telecommunications Commission as of December 31, 2003 and 2002, and the changes in its activities and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America. .,.?-#,r-;'" ~~/ ~~ March 16,2004 1 NORTH METRO TELECOMMUNICATIONS COMMISSION STATEMENT OF FlNANCIAL POSITION December 31, 2003 (With Comparative Totals for 2002) Media Cable Total Total Center Commission 2003 2002 ASSETS CURRENT ASSETS Cash and cash equivalents $ 614,150 $ 1,532,816 $ 2,146,966 $ 854,758 Accounts receivable 131,536 8,185 139,721 Investments 576,803 576,803 Intercompany account (51,280) 51,280 Prepaid expenses 2,841 784 3,625 3,969 TOTAL CURRENT ASSETS 697,247 2,169,868 2,867,115 858,727 PROPERTY AND EQUIPMENT, at cost Office and studio equipment 1,303,888 56,752 1,360,640 1,314,552 Vehicles 45,810 45,810 45,810 1,349,698 56,752 1,406,450 1,360,362 Less: accumulated depreciation (712,914) (40,803) (753,717) (622,464) PROPERTY AND EQUIPMENT, net 636,784 15,949 652,733 737,898 OTHER ASSETS Construction in progress, including land costs of $225,700 368,690 368,690 Loan fees, less accumulated amortization of $2,060 90,640 90,640 TOTAL OTHER ASSETS 459,330 459,330 TOTAL ASSETS $ 1,334,031 $ 2,645,147 $ 3,979,178 $ 1,596,625 See notes to financial statements 2 Media Cable Total Total Center Commission 2003 2002 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Current maturities of bond payable $ $ 105,000 $ 105,000 $ Accounts payable 79,900 76,783 156,683 75,558 Accrued expenses 50,874 7,597 58,471 44,542 Deferred franchise fee revenue 380,849 380,849 TOTAL CURRENT LIABILITIES 130,774 570,229 701,003 120,100 LONG TERM LIABILITIES Bond payable, less current portion 1,745,000 1,745,000 TOTAL LIABILITIES 130,774 2,315,229 2,446,003 120,100 NET ASSETS Unrestricted 1,203,257 329,918 1,533,175 1,476,525 TOTAL LIABILITIES AND NET ASSETS $ 1,334,031 $ 2,645,147 $ 3,979,178 $ 1,596,625 3 NORTH METRO TELECOMMUNICATIONS COMMISSION STATEMENT OF ACTnnTlliS For the Year Ended December 31, 2003 (With Comparative Totals for 2002) Media Cable Total Total Center Commission 2003 2002 REVENUE Franchise fees $ $ 495,385 $ 495,385 $ 481,731 PEG fees 501,238 501,238 490,996 Intercompany transfers 62,000 (62,000) Interest income 4,496 7,687 12,183 13,240 Gain on sale of fixed assets 2,000 2,000 Miscellaneous 9,951 9,951 5,300 TOTAL REVENUE 579,685 441,072 1,020,757 991,267 EXPENSES Franchise fee reimbursements, city members 136,975 136,975 35,000 Personnel 294,626 68,592 363,218 345,114 Employee benefits 82,433 19,461 101,894 87,648 Office 68,022 30,532 98,554 103,686 Legal fees 53,567 53,567 103,713 Other administrative costs 26,092 17,938 44,030 57,423 Vehic1e 2,291 2,291 2,988 Production 20,265 20,265 21,550 Depreciation 135,578 5,675 141,253 131,574 Amortization 2,060 2,060 TOTAL EXPENSES 629,307 334,800 964,107 888,696 CHANGE IN NET ASSETS (49,622) 106,272 56,650 102,571 NET ASSETS, BEGINNING OF YEAR 1,252,879 223,646 1,476,525 1,373,954 NET ASSETS, END OF YEAR $ 1,203,257 $ 329,918 $ 1,533,175 $ 1,476,525 - See notes to financial statements 4 NORTH METRO TELECOMMUNICATIONS COMl\flSSION STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2003 and 2002 2003 2002 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 56,650 $ 102,571 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 143,313 131,574 Gain on sale of fixed asset (2,000) Decrease (increase) in: Accounts receivable (139,721) Prepaid expenses 344 (865) Increase in: Accounts payable 81,125 17,373 Accrued expenses 13,929 8,509 Deferred revenue 380,849 NET CASH PROVIDED BY OPERATING ACTIVITIES 534,489 259,162 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from the sale of fixed asset 2,000 Payments on construction in progress (368,690) Purchases of equipment (56,088) (113,722) Purchase of investments (576,803) NET CASH USED BY INVESTING ACTIVITIES (999,581) (113,722) CASH FLOWS FROM FINANCING ACTIVITIES Payments ofloan fees (92,700) Proceeds from the issuance of debt 2,000,000 Principal payments on debt (150,000) NET CASH PROVIDED BY FINANCING ACTIVITIES 1,757,300 INCREASE IN CASH AND CASH EQUIVALENTS 1,292,208 145,440 CASH AND CASH EQUN ALENTS, BEGINNING OF YEAR 854,758 709,318 CASH AND CASH EQUIVALENTS, END OF YEAR $ 2,146,966 $ 854,758 SUPPLEMENTAL CASH FLOWS DISCLOSURES Interest paid $ 25,644 $ Income taxes paid $ $ See notes to financial statements 5 NOTE 1. NORTH METRO TELECOMMUNICATIONS COMMISSION NOTES TO FINANCIAL STATEMENTS NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES Nature of Activities: The general purpose of North Metro Telecommunications Commission (the Commission) is to administer and enforce a cable communications franchise in member municipalities located in the North Central region of the Twin Cities in Minnesota. The Commission also administers and operates the cable television access functions of the franchise. Basis of Presentation: The Commission has adopted Governmental Accounting Standards Board Statement No. 29, The Use of Not-for-Profit Accounting and Reporting Principles by Governmental Entities. As sqch, the financial statements are presented on the basis of net assets rather than fund balances or account groups. Also, long-term obligation accruals are included in the net asset accounts and fixed assets are subject to depreCiation provisions. Current operations reflect depreciation and amortization amounts for the years ended December 31,2003 and 2002, of$143,313 and $131,574, respectively. Revenue and Expense Recognition: The Commission reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Donor restricted contributions whose restrictions are met in the same reporting period are reported as unrestricted support. Commission revenue consists primarily of contributions from member municipalities as determined according to the joint powers agreement and public educational and governmental access fees (pEG fees). Franchise fees are assessed to the cable operator during the year end and are recognized as revenues in the following year. PEG fees are based on a negotiated contract with the cable operator and are recognized as revenues in the year concurrent with the contract. Expenses are recorded when incurred in accordance with the accrual basis of accounting. Income Tax Status: The Commission, being established by the joint powers agreement, is considered a govemnlental entity and as such is exempt from state and federal income taxes. 6 NORTH METRO TELECOMMUNICATIONS COMMISSION NOTES TO FINANCIAL STATEMENTS NOTE 1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (continued) Cash and Cash Equivalents: For the purpose of the statements of cash flows, the Commission considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents December 31,2003 and 2002 consisted of the following: 2003 2002 Minnesota Money Market Fund (4M) $ 1,080,503 General Government Securities Money Market Fund 1,066,463 $ 854,758 $ 2,146,966 $ 854,758 Checking and savings accounts at the Minnesota Money Market Fund (4M) and Government Securities Money Market Fund are fully insured. The 4M Fund investments are exempt from Governmental Accounting Standards Board Statement No.3 reporting requirements. Allowance for Doubtful Accounts: No allowance for doubtful accounts has been provided as of December 31, 2003 and 2002, as management considers all receivables to be fully collectible. Property and Equipment: Fixed assets are capitalized at cost and depreciated on a straight line basis over an estimated useful life of five to ten years. Donated assets are recorded and reflected in the accompanying financial statements at their fair market values at the date they are received. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. Amortization: Loan fees are amortized over the term of the related long-term obligation of 15 years. 7 NOTE 1. NOTE 2. NOTE 3. NORTH METRO TELECOMMUNICATIONS COMMISSION NOTES TO FINANCIAL STATEMENTS NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (continued) Accounting Estimates: 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 the reported amounts and disclosures in these financial statements. Actual results could differ from those estimates. INVESTMENTS At December 31, 2003, the Organization's inves1ments, recorded at fair market value (based on quoted market price), consisted of municipal bonds of $179,447 and certificates of deposits of $397,356. LONG TERM LIAIBILITIES In August 2003, the member cities of the Commission issued $2,000,000 of Cable Franchise Revenue Bonds for land acquisition and construction of a bnilding. The bonds mature over a fourteen-year period and bear fixed rates varying from 1.5% to 4.9%. Future franchise fees and other revenue of the Commission are pledged as collateral. Principal payments are to be made annually starting in December 2003. Interest is payable semiannually from December 2003 through December 2017. For the year ended December 31, 2003 the Commission paid and capitalized $25,644 of interest costs for construction of their building. Scheduled principal maturities as of December 31, 2003 are as follows: Year Ending December 31, Amount 2004 $ 105,000 2005 105,000 2006 110,000 2007 115,000 2008 120,000 Thereafter 1,295,000 $ 1,850,000 8 NOTE 4. NOTE S. NOTE 6. NORTH METRO TELECOMMUNICATIONS COMMISSION NOTES TO FINANCIAL STATEMENTS OPERATING LEASES The Commission leases its office premises under month-to-month arrangements requiring monthly rental payments totaling of $4,884 plus a pro-rata share of property taxes. Rental expense totaled $69,303 and $73,303 for the years ended December 31,2003 and 2002, respectively. DEFINED BENEFIT PENSIONS PLAN-STATEWIDE Plan Description: All full-time and certain part-time employees of the Commission are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (pERF) and the Public Employees Police and Fire Fund (pEPFF) which are cost-sharing, multiple- employer retirement plans established and administered in accordance with Minnesota Statutes. For 2003, the Plan required employee contributions of 5.1% and employer contributions of 5.53% on eligible employee payroll. The Commission's contributions to the plan for the years ended December 31,2003 and 2002 were $19,200 and $18,455, respectively, as contractually required by state statutes. FRANCmSE FEE REIMBURSEMENTS Included within franchise fee reimbursements for the years ended December 31, 2003 and 2002, are the following amounts paid and accrued by the Commission to its city members that represent refunded franchise fees: 2003 2002 City of Blaine $ 72,983 $ 18,321 City of Centerville 4,706 1,248 City of Circle Pines 6,647 1,750 City of Ram Lake 16,063 4,094 City of Lexington 3,324 893 CityofLino Lakes 21,674 5,737 City of Spring Lake Park 11 ,578 2,957 $ 136,975 $ 35,000 9 NOTE 7. NOTE 8. NORTH METRO TELECOMMUNICATIONS COMMISSION NOTES TO FINANCIAL STATEMENTS CONSTRUCTION COMMITMENTS During 2003, the Commission co=enced construction of a building to house the operations of the Commission. At December 31, 2003 purchase commitments for construction to be completed are as follows: Amount Total construction contract Less amount expended $1,157,000 (55,228) Remaining contract commitment $1,101,772 CONCENTRATION OF CREDIT RISK Substantially all of the Commission's revenue is derived through Commission's franchise agreement with cable operating company. In the event of the termination of such agreement without replacement thereof with another cable operating entity, the Commission's revenue could be reduced to a level prohibiting continuing operations. 10 MueUerleile & Harrington, Ltd. Certified Public Accountants 2393 Rice Street. Roseville, MN 55113 (651) 481-1128 Fax (651) 481-0982 Kenneth J. Muellerleile, CPA Wayne A. Langer, CPA Michael J. Roehl, CPA Mark D. Harrington, CPA Jeffrey L. Pletcher, CPA Gregory W. Heck, CPA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE To the Board of Commissioners North Metro Telecommunications Commission Blaine, Millnesota We have audited the financial statements of North Metro Telecommunications Commission as of and for the year ended December 31, 2003, and have issued our report iliereon dated March 16, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to North Metro Telecommunications Commission is ilie responsibility of North Metro Telecommunication's management. As part of obtaining reasonable assurance about whether 'the financial statements are free of material misstatement, we performed tests of North Metro Telecommunications Commission compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported herein. . This report is intended for the information of the Commission and its management. However, this report is a matter of public record and its distribution is not limited. ~~~~~/~~ March 16, 2004 11 City of CenterviC{e ervi{{e 'Esta6{is/ieti 1857 PersonneC Po aCies .Jt.doyterE CITY OF CENTERVIILE PERSONNEL POUCIES Successful public relations are a very important element in every City Employee's job. It is important to be considerate, pleasant, prompt and brief in all dealings with the citizens of the City of Centerville. The impression we make over the phone or in person, whether good or bad, will be the one that the citiz'en will remember. It is the mission of the City of Centerville to provide the highest quality service to Centerville residents and taxpayers in the most effective, efficient manner possible. Proper adherence by all City Employees to these policies will help attain that goal 1. PURPOSE AND APPUCAT 1.1 Purpose General: The purpose of this policy is to of personnel administration for all Employe organized personnel who work under a nego event of a conflict between the te of the nego policy, the terms of the nego' ent s Employees subject to the agreem shall be construed as part of an em and its Employees. 1.2 Scope lies to all City of Centerville Employees, C) . ty Boards, Commissions, and Committees; D) Volunteers; E) Persons engaged under a specific employment contract. Collective Bargain;ng: All Employees covered by a collective bargaining agreement entered into in accordance with the Public Employers Labor Relations Act, Minnesota Statutes ~179.61 -179.77, and ~179A.Ol-179A.25 shall be exempt from any of these provisions which direcrly conflict with the language in the bargaining agreement. 1 1.3 Authority Rights: The City reserves the right to operate and truinage its affairs in all respects in accordance with existing and future laws and regulations. These rights shall specifically include, but not be limited to, the right to adopt, amend, repeal, interpret or terminate the personnel policy and work rules without prior notice. Any prerogative or authority which the City has not specifically abridged, delegated or modified by this policy is retained by the City. The City further reserves the right to make reasonable variations from this policy where it is detennined that a strict and literal application of the policy would cause an undue hardship on the City, its Employees, or an individual Employee. 1.4 Equal Opportunity Employer Interpretation: The City Administrator shall make int or decision on iterus not covered within these policie prior policies, representations or understandings an Srnte and Federal Laws, as well as City Ordinanc of these policies supersedes any all applicable s to provide full and equal to employment, training, . scriminated against with er privileges of employment onal origin, sexual orienrntion, e status, disability, or to any other group .bited by Srnte or Federal law. The follo indicates . ve the meaning as defined herein, unless the context Absent Wi a single day or under the provisi absence of an Employee from duty including any absence for t is not authorized by a specific leave of absence or time off s policy. Anniversary Date: The month and day of initial hiring or promotion of a reguIar full-time or regular part-time Employee. Appointing Authority: The City Council or City Officer to whom the Council has delegated authority to appoint personnel Benefits: Privileges or other compensation granted to Employees in the form of leaves of absence, insurance, or pay received in lieu of accrued leave upon tennin.tion of employment. 2 City: The City of Centerville. City Administrator: The City Administrator of the City of Centerville. City Council: The City Council of the City of Centerville. Compensatory Time: For exempt Employees, the same amount of time off work as the employee has overtime hours worked. For non-exempt Employees, time off work at one- and-one-half times the number of overtime hours worked. Demotion: The change of an Employee's status to a position ofha rank or grade, and/or lesser responsibility than previously held. one or several Department: A branch of City administration with resp assigned functions. Department Head: The supervisor of a department. Employee - Exempt: Labor Standards Act. Employee - Intermittent: An at-will indefinite time, under the same terms and .onally or on-call for an Employee. Employee - Full-Time: An successfully completed a re approved City budget for g at least 32 hours per week, who has od, and serves in a position funded in the Employee - Non-Exe Act. . vered by the Federal Fair Labor Standards Employe has succ benefits, 0 at ployee working less than 32 hours per week, who e reqUlted probationary period and who is not eligible for ted by state or federal law. Employee - R selection process . t-will Employee who has successfully completed all stages of the g the training period and/or probationary period. Employee - Seasonal: A full-time or part-time at-will Employee whose appointment is limited to a specific season of the year and is employed under the same terms and conditions as a temporary Employee. Employee - Temporary: A full-time or part-time Employee who serves in a position on a temporary basis where no benefit eligibility exists and no credit is given for seniority. Employer - The City of Centerville. 3 Hours Worked: Includes all hours that the Employee actually performs duties that henefit the City, including: rest periods or breaks, meetings, training programs, travel between wo:tk sites on a wo:tk day, time spent performing duties after hours or on weekends due to emergencies (call backs) and any time performing duties outside the normal shift, even if it is not "authorized." Job Classification: A group of positions sufficiendyalike in duties, qualifications, authority and responsibility to warrant the same job tide, grade and pay schedule for all positions in the group. Job Description: The written description of a job containing a tide, authority and responsibilities of the job, and the qualifications necessary and/or desirable for the satisfactoty performance of th Lay-Off. The separation of an Employee from ernplo position. . . tion of a Performance Report: A review of an Emplo~ communicate an Employee's strengths or defi improvement. Position: A specific job, calling for th responsibilities. uties and having certain Probationaty Period: A peri period of a promotion, tran also considered a o employment (or the beginning a trial period. The probationary period is of the selection process. Promotion; An classification or one classification or grade to a higher Reductio shortage tion of an Employee from employment due to the . tion initiated by the Employee who chooses to leave the Transfer: A movement of an Employee from one job class or position to another of comparable class and pay range. 3. ORGANIZATION 3.1 Personnel Files Employment File: The City Administrator or designee shall maintain a separate employment file for each Employee. Each file shall contain a record of each 4 classification of each position the Employee has held with the City and shall also contain a ~eco~d of all p~sonnel action ~egaJ:ding the Employee including examination ~eco~ds, performance ~eports, disciplinary p~oceedings, demotions, promotions, salary changes and any oth~ document ~elevant to City employment. 3.2 Job Description Gene~a1: The City will maintain a written description of each job containing a tide, a statement of duties, authority and ~esponsibilities of the position, and the exp~ence and qualifications deemed necessary and/ o~ desirnble fo~ the satisfactory performance of the duties of the position. These desctipti will normally be updated periodically, as duties o~ assignments change, o~ at etion of the City Administtato~. Responsibility: The classifica qualifications, and the maintenance the ~esponsibility of s Responsibility: Assignment of work ~esponsibility of the Depamnent Head. It time to ~espood to the changing needs of the 3.3 Assignment of Work 3.4 Classification of Job Dutie establishment of minimum = s and ~elated ~eco~ds shall be ~ designee. assigned a salary ~ based upon, but A) knowledge, accountability, p~oblem solving, abilities and e position; ~ates of pay fo~ oth~ job classificatioos, wheth~ comparnble C) ~ates of pay fo~ comp~able positions in both public and ployment in the app~opriate labo~ market; D) The cost of living as measmed by the Bmeau of Labo~ Statistics and Consum~ Price Index; E) The value of fringe benefits provided by the Employ~; F) Financial and fiscal policies and considentions of the City, and othe~ p~ent economic facto~. 5 Approval: Each fiscal year, the City Council shall review the pay plan and adopt salary ranges for each classification. The City Council may modify salary ranges at any time. The City Council shall adopt hourly rates of pay for all positions not covered by the classification and pay plan. Reclassification:. Whenever a job has changed sufficiendy so that it no longer fits the description,' the City Administrator or designee shall make recommendation to the City Council regarding the appropriate action which could involve: reclassifying the job to another existing job class; creating a new job class, updating the job description, restructuring the job to fit an established or proposed class, or other action as deemed appropriate. Procedure: Vacancies will first Administrator, it is necessary candidates, the position will be ope 4. APPOINTMENTS 4.1 Vacancies General: Vacant positions will be filled appointment and may be made on a full-time , . the opinion of the City attract more qualified Evaluation Method: the following ways' interview, a p exam. ns will.be evaluated in one or more of d training, a writren test, an oral test or test, or other appropriate job-related 4.2 OSlt1 acancies for regular full-time and regular part-time d on the' official City bulletin boards in City Hall and the for five (5) working days prior to advertising externally. The e tide, starting salary or range, the nat11re of the work to be o apply, the closing date for receiving applications, and other tion. 4.3 Recruitment and Selection Recruitment: The City Administrator or designee is responsible to manage the recruitment process to assure compliance with federal and state laws as well as City of Centerville practices. This includes approving all job postings, advertisements, placing of job advertisements, addendums to the application and other recruitment materials. The City Administrator or designee will meet with the appropriate supervisor to determine the best methods for recruiting. All appointmerits shall be made on the basis of merit and fitness for the position. Merit and fitness may be 6 detettnined by written, oral and/or other job-relevant examination, as well as by consideration of education, past experience and other job-relevant qualifications. Announcement: When the City recruits a position externally, the position will be advertised in selected newspapers, periodicals, newsletters and/or through direct mailings at least ten (10) days in advance of the deadline for application. Application Form: Applicants for initial hire or promotion must normally submit written application materials setting forth their qualifications and such other information as may be pertinent and required by the City. Unless otherwise stipulated by the City Administrator, applications will not be sidered complete without the inclusion of a signed, official City of Centerville yment application form. Re and City A based on th Application Review: The City Administrator and/ r applications and conduct job-relevant background determine candidate qualifications. Initial applicants whose qualifications are best-sui meeting minimutn qualifications required for consideration. Examination: If an examinati administered by the City A established by the same. Upon Administrator or his /h . writing, of the res accordance with Disqualification applicant 4.4 cil is the Appointment Authority for the City of Centerville time appointments, based upon the recommendation of the The City Administrator shall submit a hiring recommendation 'ew results of eligible candidates to the City Council Other: Appointments to budgeted patt-time, seasonal, intermitrent, and temporary positions may be delegated to the City Administrator. 4.5 Temporary Appointments General: If necessary to prevent interruption of service or inconvenience to the public, the City Council may approve temporary appointments. A temporary appointment may be made for a specified period of time or may be open-ended. When the appointment is open-ended, the City Administrator shall determine the 7 ending date based on needs of the City, subject to Council approval. Temporary appointments will nonnally be of duration of six months or less. Extension of this maximum time period may be made on an exception basis if warranted by the needs of the City and approved by the City Council Appointees to temporary positions will not be entided to benefits. 4.6 Pre-Employment Medical Exams 4.7 4.8 Applicability: The City may determine that a pre-employment medical examination is necessary to determine fitness for any City position. Where a medical examination is required,. the offer of employment shall be made contin upon successful completion of the medical exam. If the City determin pre-employment medical exams will be required, they shall be required didates who are conditionally offered employment for a given job class. Confidentiality: The information obtained d in the same manner as for confidential medi Practices Act and HIP AA regulations. be treated sota Data oyer shall conduct the exam. a description of the duties the position. The City no the City Administrator the job. Notification of Re results of their e results, he or s explanation from . trator shall inform the candidates of the . rejected for employment based on the determination and may request further t of minors will be limited to the ages and conditions as al Fair Labor Standards Act (FLSA) and, where more bor laws. Labor Relations Act Relations between the City and its organized Employees are guided by the Public Employment Labor Relations Act (p.E.L.R.A.) of 1971, as amended. A copy will be made available for Employees upon request. Joining a union is not required for employment. However, under the Act, the union may require non members to contribute a "fair share fee." 8 4.9 Probationary Appointments Purpose: The probationary period is an integral part of the selection process and shall be utilized for observing an Employee's work and for training the Employee in the work expectations, for assessing the Employee's abilities, skills, and interest, and for rejecting any Employee whose performance does not meet the required work standards. The first six (6) months of employment shall be considered an Employee's probationary period. Duration: Probationary periods apply to new hires, transfers, promotions and rehires. The Council, under special circumstances, may e the probationary period up to a maximum of six (6) additional months. Termination during Probationary Appointment: Administrator with approval of the City Coun . Employee anytime during that Employee's pro tprmin.ted shall be notified in writing of th . not have the right to appeal unless he or sh prescribed in Minnesota Statute ~197.46 sh law, shall be released from employment with through a fair hearing for incom r miscon Policy shall be construed to impl len an Employee has any vested intere cil, or the City robationary ployee so the te1:lllina and shall which case the procedure d. Veterans, as defined by only after a determination Nothing in this Personnel the probationary period, f City employment. Demotion: Employ which they were tr from which the authority. If a leave of absence probationary period from a position to y be reinstated to a position in the class oted, upon approval of the appointing n t open, the Employee may be placed on . e as an appropriate position is available. nod: A performance evaluation will be completed ee before the end of the probationary period. The notify the Council as to whether the Employee's satisfactory or not, and whether the employment relationship City tor: In the case of the City Administrator, the Council will evaluate the Employee and determine whether or not to continue the employment relationship. The evaluation of the City Administtator shall be in writing on a performance review form. Notification: If the notification indicates the Employee has successfuUYc;ortl~wted the probationary period and employment will be continued, the Eniploie~-will become a regulat Employee within the meaning of this policy. The Employee's length of service will be computed from the date of hire for the purpose of calculating the term of probationary period. 9 4.10 Background Investigation Upon the request of the City Administrator, the police department shall provide certain criminal history data contained in the Minnesota Criminal Justice Information System. The data to be provided must only be about finalists for City positions of employment. The City Administrator must obtain the consent of the finalists before requesting the data, but an applicant's failure to provide consent may disqualify the applicant from the prospective position. 5.1 Reclassification 5. EMPLOYMENT STATUS CHANG General: A recommendation for an Employee made on the basis of the job's content, resul . difficulty, and/or responsibility of the reclassification may warrant an increase or d must review all reclassification recommenda Reclassification will be approved onl by the City 5.2 Promotion General: Vacancies s the requirements es the City. tion 0 present Employees who meet cation, when it is in the best interest of 5.3 Demotion be demoted if found unsuited for the present position to satisfactorily in a position of having a lower pay d/ or esser responsibility than previously held. An Employee if his /her position has been abolished or reclassified and sferred to a position of equal pay for which they are qualified 5.4 Reduction of Workforce General: If it is necessary to reduce personnel, temporary Employees and those serving a probationary period in affectrd job classes will be separated before regular . Employees. Within each of these groups, the selection of Employees to be retained shall be based on merit and ability as determined by the City Administrator, subject to Council Approval Lay-off: The City may layoff any Employee whenever such action is made necessary by reason of shortage of work or funds, the abolition of a position, or 10 because of changes in organization. Two weeks advance written notice of the lay-off sball be given. An Employee may be transferred to another position if such Employee is qualified and a position is available. When a lay-off occurs in a job classification in which more than one Employee serves, qualification and job performance sball be the basis for dett'ttnining which Employees are laid-off unless otherwise required by law. Not Disciplinary Action: The suspension and dismissal procedures outlined in Section 17, Discipline, of these policies shall not apply to separation covered by reduction in force. 6.1 General Policy 6. COMPENSATION AND WORK Wages: All Employees of the City sh schedules or salaries as determined recommendation of the City Administrator. wages or sala:ry of any job class at any time for b to wage Starting Wage: Initial appointm the adopted wage for the applic starting rate at the discretion of training, qualification . r exp position. e pos will nonnally be made at epllons may be made to the ased on additional education, that normally requited for the 6.2 Pay Periods be paid by check, on alternate Thursdays. The pay e for the houtS worked during the pay period plus any ertime, and PTO taken during the period. 6.3 ployees are expected to perform their regular work duties when required to so by their supervisor, including situations where the workday or workweek requires additional hours or different houtS from that nonnally scheduled. Timeliness: It is expected that all Employees will report to work on time, use their available houtS to the best advantage, and leave only after the regular work houtS are completed. Full-Time Work Week Defined: The regularly scheduled work week for full-time, non-supervisory Employees is eight (8) houtS per day and forty (40) houtS per week, with the regular work week defined as Monday through Friday, 8:00 a.m. to 4:00 p.m.., including rest periods. 11 Part-Time Work Week Defined: The regularly scheduled work week for part- time, non-supervisory Employees is less than thirty-two (32) hours per week, including rest periods. Flexible work schedules will be allowed on a case by case basis as approved by the City Administrator. . 6.4 Work Breaks Meal Break: Employees working eight or more consecutive hours will be authorized an unpaid meal break. General: Job sharing will be c request. Arrangement should agreement between an Employe Council. Rest Break: When working under conditions where th practical, Employees will be allowed to take a fifteen- midway through each four-hour shift. The time 0 approval of the supervisor. Unused rest breaks they be used for any purpose other than a mid-s may not be used to leave work early. of a rest break is reak approximately . s subject to the ted, nor may rest breaks 6.5 Job Sharing basis at an Employee's ediate supervisor. Any subject to approval by the 6.6 Overtime General: The In emergency sched . Lab p oyees may be required to work extra hours expected peak workload periods. The overtime will be in accordance with the applicable Fair llowing: oyees: Full-time, non-exempt Employees shall be their supervisor requires them to undertake in excess of a Holiday and PTO hours are considered hours worked for the hug a forty-hour work week. The compensation shall be computed a and one-half times the regular rate of pay. The Employee shall be compensated for any overtime worked in the same pay period it is earned. Exempt Employees: Exempt Employees shall not be granted overtime compensation unless a special contractual agreement exists. However, exempt Employees shall not be denied compensation for any absence of less than one day, since the Employee is presumed to work forty hours per week, some duriug the regular workday, and some outside those hours. Overtime Authorization: Overtime should be avoided, but when it is necessaty, the City Administrator must give specific approval prior to its being earned Pre- 12 authorization may be presumed by Employees in emergency situations such as excess snowfall, flood, severe storms, water main breaks, lift station malfunctions, or other similar situations where the immediate response of staff is required to avert endangerment of life, home or property. In the event of an emergency situation, the City Administrator shall be notified immediately. 6.7 Compensatory Time General: The City of Centerville may give compensatory time off, in lieu of paid overtime, when it is mutually agreed upon with individual Employees before the over time hours are worked. The Employee must be allowed to tak pensatory time off at his/her convenience. A compensatory time-off reque ot be denied unless it is an "undue hardship" for the City. 6.8 Rate: Employees who are assigned to work by th work day shall be compensated at the rate 0 Employee's basic hourly rate for all hours wo or shall receive equivalent compensatory (1 Yz) hours for each hour worked. . f . h (fIK( Lj>> a maxunum 0 eJg tyy:v/ . . pensatory time off ifi the ensatory time will be paid off satory time will be paid upon e's regular rate of pay at the time of Procedures: Employees may be hours of compensatory time. same manner as they request PT before December 31" of each year. termination of emplo t the termination. evote all work time to City business. Work time desctibes d No work relating to outside employment or other ed during work time. tside employment may not present a conflict of interest, or e welfare of the City. Perfonnan utside employment shall not interfere with an Employee's proper performance of City duties. Employees are required to be available at all times for emergency or overtime work as needed. With the exception of overtime work, Employees should be able to report to work refreshed and ready for work. Contracts with City: Employees are prohibited from working for any contractor or company that has a contract with the City during the period of time in which work is being done for the City. Supplies: No Employee shall accept employment that requires the use of City equipment, facilities or material. 13 / Compensation: No Employee shall accept payor compensation from anyone for work done during time being reimbursed by tbe City. Employees who are volunteer firefighters shall: A) Make up time lost due to emergency calls; B) Use accumulated personnd leave or otber leave for such calls, or pay tbe City any earnings received as a volunteer for such calls; C) Unless authorized otherwise, only one Employee may fire call General: Solicita. working time 0 1bis shall in subscriptions, of activi de. Questionable Sitnations: Any doubtful case or pro the City Administtator if it may involve a conflict of . 6.9 Unauthorized Absences 6.10 Solicitation any purpose is prohibited during the . ling and the Employee being solicited. of funds, pledges, taking orders or e licitation of memberships or any similar type be made with prior approval of the City administtator or . erature by Employees including handbills, leaflets, is prohibited at any time in any working area. 7. HOLIDAYS 7.1 General Eligibility: Regular full-time Employees are eligilile for the paid holidays as listed bdow. Part-time, seasonal and temporary Employees will not be eligible for holiday pay. 7.2 Holidays New Year's Day Martin Luther King's Birthday President's Day January 1 Third Monday in January Third Monday in February 14 Memorial Day Independence Day Labor Day Veterans Day Thanksgiving Day Fourth Friday Christmas Day floating Holiday Last Monday in May July 4 First Monday in September November 11 Fourth Thursday in November Friday after Thanksgiving December 25 Date to be pre-approved. Sunday/Saturday Holidays: If a holiday falls on a Sunday, the following day will be the observed holiday. If a holiday falls on a Saturday, the preceding day will be the observed holiday. 7.3 Holiday Pay Floating Holiday: Each Employee gets one floating h taken at the request of the Employee, with prior supervisor. Floating holiday may be taken d unused floating holiday shall be forfeited and payroll year nor paid as severance. yeat and it may be e Employee's period. An o the next Worked: An Employee required and one-half (2 %) times the Empl be paid at the rate of two Not Worked: An Emplo ee not s at the normal hourly n holidays will be compensated On Leave: H considered a ho funeral on that day. ployee's PTO or funeral leave will be eave bank will not be charged for PTO or TI ' OFF(PTO)-LEAVEWITHPAY 8.1 -time Employees who have worked for the City for at least six months ate "hIe to accrue annual Personal Time Off leave (ITO) from the date the Employee is hired. PTO will be available for use as it is accrued according to the schedule below. . 8.2 Accmal Rate of Accmal: Full-time Employees shall earn PTO leave at the following rates. Years of Service 0-4 PTO Earned 6.77 houts per pay period 15 5-9 10 -15 16+ 8.31 hours per pay period 9.85 hours per pay period 11.38 hours per pay period Accmal While Using: Employees using earned PrO shall be considered to be working for the purpose of accumulating additional PrO. 8.3 Requirements Usage: Personal Time Off (PTO) Leave may be used as earned, subject to approval by the Department Supervisor or City Administrator. y be taken in increments of one hour or more. Up to a maximum of 17 s of accrued PTO may be carried over to the next year. Use of PrO Leave PTO leave will be c on that day. Procedure: To be eligible for PTO leave with soon as possible to his or her Department Hea its estimated duration. Requests to use Pr hours in advance of the requested time discretion of the City Administrator. report as leave and Pay-Out of PrO Leave: The of pay in effect at the time of standing, all earned PTO will be p e Employee's regular rate the t of termination in good 's regular rate of pay. olidays occurring during an Employee's e Employee will not be charged for PTO e and Medical Leave: In order to allow e Off leave with Family and Medical Leave, Employees uired to provide enough information about the purpose tion of whether the leave will also qualify for Family e Prohibited; No Employee is permitted to waive personal e of receiving double compensation. Workers' Compensation: Employees are covered by workers' compensation laws and regulations of the State. In the event an Employee is disabled and is entided to workers' compensation, the Employee will keep any workers' compensation payments received and will be eligible to receive a bi-weekly pay check equal to one- third (1/3) of the Employee's regular pay through the use of personal leave benefits. In addition, the Employee will be entitled to insurance benefits during a workers' compensation leave. Employees receiving such workers' compensation will be considered working for the purpose of accumulating additional personal leave benefits. 16 Unused PTO Leave Pay: Any unused Personal Time Off leave may be paid out subject to the following roles and regulations: (A) The Employee must be in good standing and give proper notice of termination in the case of resignation. (B) Qualifying Employees shall receive pay for all of their unused PTO accumulated at the time of termination. 8.4 Donation of Personal Leave General: With the expressed written approval of the City may donate accrued PTO in one-hour increments to fell extended time off due to a serious medical problem accumulated PTO or compensatory time. The must be approved by the Department Head an converted to the receiving Employee's houri. to part-time, temporary or seasonal positio sick pool that is already established. The Employee to another shall be subject to conditions. (A) A written request to donat via the City Administrator. (B) e right to deny use of donated personal sts of the City. 9.1 . . trator may authorize an unpaid leave of a,bsence for up aid leaves of absence for greater periods must be authorized by ecisions on unpaid leave of absence requests will normally take into consid n the Employee's performance, length of service and the general interest of the City. No Employee benefits will be earned by an Employee while on unpaid leave of absence and an Employee will not accrue or be paid holiday payor PTO leave while on leave of absence. Leave of absence hours will not count toward seniority and all accrued PTO must normally be used before an unpaid leave of absence will be approved. 9.2 Family Medical Leave Act (FMLA) General: The Family and Medical Leave Act (FMLA; 29 D.S.CA. ~ 2601 - 54 and 29 C.F.R. ~ 825.100 et. seq.) requires public a,gencies to provide up to twelve (12) 17 weeks of unpaid leave to eligible Employees for reasons relating to family and medical care. Eligibility Requirements: To be eligible, an Employee must have worked for the City for at least 12 months, worked at least 1,150 hours during the 12 months preceding the start of the leave, and be employed at a wo:rksite with 50 or more Employees within 75 miles of that work site (elected official are not counted.) Eligible Uses: Eligible Employees can take up toe 12 workweeks of unpaid leave during a 12 month period to care for a newborn or newly adopted child or newly- placed foster child; care for a spouse, son, daughter or par=t~ a serious health condition; or care themselves during a serious health condittW' A serious health condition is defined as: (A) An illness, injury, impairment or physical 0 either inpatient care or continuing trea three (3) or more consecutive days; (B) Any period of incapacity because of (C) (D) . Ie trnents by health care accident or injury, or for a eriod of incapacity of more than three . e the Employee to document the need on issued by a health care provider. The een (15) Calendar days to obtain the certification. we Leave: The FMLA permits Employees to take asis or to work a reduced schedule under certain it Leave: Employees may choose to use accrued paid leave to of the FMLA leave taken. Job Restoration: When an Employee returns from FMLA leave, the City must restore the Employee's original job or an equivalent job. Health Benefits: The City must keep the Employee on its health insurance coverage, including family coverage, and continue to pay the City's share of the coverage as if the Employee were still at work. The Employee must pay his or her share of the premium. The City may cancel coverage if the Employee's premium payment is more than thirty (30) late and the City has given the Employee written notice at least 15 days in advance advising that coverage is going to be canceled if the premium is not received. 18 Other Benefits: Other benefits, including cash payments chosen by the Employee instead of group health insurance coverage do not have to be maintained during periods of unpaid FMLA leave. 9.3 Military Leave General: Minnesota Statutes, ~ 192.26 - 192.261 provide that an Employee of a municipality who is a member of the National Guard, the Naval Militia, the Officer's Reserve Corps, the Naval Reserve, the Marine Corps, or any other reserve component of the military or naval forces of the United State ntitled to a leave of absence without loss of pay, seniority status, efficiency or benefits for the time such Employee is engaged in training or active se ceeding a total of fifteen (15) days in any calendar year. Conditions: The leave of absence is only in employment immediately upon being relieve prevented from returning by physical or m of the Employee, or is required by the pro naval service beyond the fifteen (15) day P absence. Notice Requirements: Notice days in advance of the requeste circumstances. 'ty at least fifteen (15) working y be waived under certain the Employee will be granted an unpaid uty. If an Employee has not yet used hen called to active duty, use of any unused . or to the unpaid leave of absence. fo tinuation of insurance coverage will follow the same erminated or laid off Employee while an Employee is on an for active duty. The leave of absence will not be considered s ofPTO accrual. Status upo : Returning reservists have the right to return to their jobs or to another job of similar seniority, status, and pay upon completion of active duty in accordance with M.S. 192.261, Subd. 2 and 38 U.S.c. ~ 2021 and 2024. 9.4 Jury Duty General: Regular Employees may be absent with pay when serving jury duty or when subpoenaed as a witness in court or voluntarily serving as a witness in a case in which the City is a party. 19 Pay: To receive their normal wages, the Employee must pay the City the jury duty compensation, minus any mileage or parking reimbursement. If the jury duty compensation exceeds the regular salary rate, the Employee may keep the difference. 9.5 Funeral Leave General: Paid time off may be granted, up to a moximum of three (3) days, in the event a regular Employee suffers a death in his or her immediate family, in accordance with the provisions of this Section. Additional time off without pay, or sick leave if available and requested in advance, will be granted as may reasonably be required under individual circumstances, subject to the appro f the department head. General: Und six weeks time 0 The lea that, . Immediate Family Defined: Immediate family (fo defined as an Employee's parent, step-parent, spo adopted child, brother, sister, step-brother, s spouse's parents, brother-in-law, sister-in- household. , f this Section) is foster child, andchild, ediate approved will be determined . cumstances, (such as the to the funeral, etc.). In ay except that Employees will 9.6 8 . 41, an Employee is eligible to take up to ay ction with the birth or adoption of a child ore than six weeks after the birth or adoption; except . d must remain in the hospital longer than the mother, six weeks after the child leaves the hospital s who work at least half-time and have worked for the City consecutive months are eligible for parenting leave. Health Ben Insurance coverage will continue to be available to the Employee while on parenting leave. The City will continue to pay its share of the coverage as if the Employee were at work. The Employee will be responsible for his/her share. Use of Personal Leave: Employees are not required to use personal leave during parental leave but may use personal leave at their option for any period of this leave. Reinstatement The Employee is entitled to return to work in the same or comparable position and at the same rate of pay the Employee was receiving prior to co=encement of the leave. Benefits will continue to accrue as if the Employee was at work. 20 9.7 School Conference and Activities Leave Leave of 16 Homs: Under Minnesota Statute ~ 181.9412, an Employer must grant an Employee leave of up to a total of sixteen (16) hours during any twelve- (12) month period to attend school conferences or school-related activities related to the Employee's child, provided the conferences or school-related activities cannot be scheduled during non-work hours. If the Employee's child receives child care services or attends a pre-kindergarten regular or special education program, the Employee may use the leave time provided in this section to attend a conference or activity related to the Employee's child, or to observe and m r the services or programs, provided the conference, activity, or observati ot be scheduled during non-work hours. When the leave cannot be s during non-work hours and the need for the leave is foreseeable, e must provide reasonable prior notice of the leave and make a re schedule the leave so as not to disrupt unduly the operations 9.8 Foster Child: For the purpose of this se, foster child. Unpaid or Use of PTO: The sc except that an Employee ma compensatory time for any part 0 . . ties leave will be unpaid, d paid PTO leave or on. B.195, an individual who is selected to B.21, subdivision 2 may, after giving the e, be absent from work for the purpose of without penalty. The Employer may restrict the number . n judges to twenty (20) per cent of the workforce at a s wages of the Employee serving as an election judge shall be t paid to the election judge by the appointing authority during ee was absent from employment. Request: The written request to be absent from work must be accompanied by a certification from the appointing authority stating the hourly compensation to be paid to the Employee for service as an election judge and the hours during which the Employee will serve. 9.9 Leave for Bone Marrow Donation General: Under Minnesota Statute ~ 181.945, an Employee who works an average of at least 20 hours per week is entided to a paid leave of absence to undergo a medical procedure to donate bone marrow. The combined length of the leave may 21 not exceed forty (40) hours, unless agreed to by the Employer. The Employer may require verification by a physician of the purpose and length of each leave requested by the Employee to donate bone marrow. If there is a medical determination that the Employee does not qualifY as a bone marrow donor, the paid leave of absence granted to the Employee prior to that medical determination is not forfeited. 9.10 Civil Air Patrol Leave General: Under Minnesota Statute ~ 181.946, an Employee who works an average of at least 20 hours per week and is a member of the civil air patrol is entitled to leave of absence without pay for time spent rendering servic member of the civil air patrol on the request and under the authority of tate or any of its political subdivisions. The leave shall be granted unl ve would unduly disrupt the operations of the Employer. 9.11 Time Off to Vote General: Under Minnesota Statute 204C.0 in an election has the right to be absent from the morning of the day of that election, without wages because of the absence. 'yee who is eligible to vote e purpose of voting during or deduction from salary or " ection" means a regularly to fill a vacancy in the office epresentative, or an election to fill a , te Representative. 9.12 Statute ~ 181.92, Employees shall, upon request, be ks off, without pay, for the adoption of a child. The efore, or at the time of, the child's placement in the e, and shall be for the purpose of arranging the child's r the child after placement. An Employee may choose to use e for all or a portion of the adoption leave. 9.13 General: Under Minnesota Statute ~ 181.9413, Employees may use personal leave benefits provided by the City for absences due to an illness of or injury to the Employee's child for such reasonable periods as the Employee's attendance with the child may be necessary, on the same terms the Employee is able to use sick leave benefits for the Employee's own illness or injury. 22 10. TEMPORARY LIGHT DUTY POLICY 10.1 Application Temporarily Disabled: Consistent with public service needs, the City may assign light duty to employees who are temporarily disabled and unable to provide full performance of all won duties assigned to their job classification. The City reserves the sole right to determine, on a case-by-case basis, whether light duty will be assigned and, if assigned, what duties the employee will be expected to perform in the duration of the assignment. The City ma selected b restricti t evaluation conducted by a physician e diagnosis, current treatment, work . ability. Procedure: The procedure for applying for light duty ass. A) When an Employee is unable, due to tempo performance of all work duties assigned to the Employee may request light duty Duty form and submitting it to his/ state the nature and extent of the which the Employee is unable to p the disability and any work restrictions r usually require the req e accom containing diagnosis, curr assignment with any restri B) C) duty will be made on a department-by- se basis. The Department Head, in consultation with will consider such factors as public service needs and s, the need for work which may be assigned as light loyee's capability of performing the work, the number of available for work due to injury or illness, and other relevant D) will determine what job duties the Employee will perform. These duties may include those currently assigned to the Employee's job classification or any other duties the City considers to be appropriate. Duration of light duty will be determined at the sole discretion of the City. E) Assignments to light duty will be reviewed on a monthly basis or more often as deemed necessary by the City. The City, in its sole discretion, reserves the right to terminate a light duty assignment at any time based upon, but not limited to, the factors set forth in sub-item C) above. 23 11.3 Continuation of Benefits Health Plans: Employees will be allowed to continue health and dental insurance coverage upon tennination in accordance with Minnesota Continuation laws and! or federal CDBRA regulations. Certain "qualifying" events trigger an Employee's and! or dependents' right to continuation coverage. Termination or Reduction: Generally, an Employee and his or her dependents are allowed to continue coverage for a period of eighteen (18) months when one of the following qualifying events occurs: . A reduction in the Employee's work hours (including strikes or layoffs); or . Voluntary or involuntary tennination of the Employee for reasons other than gross misconduct. Divon:e, Separation, Death: In the instance of divorce, legal separation or death of the Employee, a spouse and! or dependent child may continue coverage until: . Coverage is obtained under another group plan; or . Until coverage would otherwise end under the plan, such as the City tenninating their group coverage for all Employees. Life Insurance Benefits: Generally, if an Employee loses coverage through tennination of employment or reduction in hours, s/he has a right to continue group life insurance benefits for a period of eighteen (18) months from the loss of the coverage date. Health FSA: In cases where an Employee has under-spent his/her health FSA, coverage generally will only be continued until the end of the plan year. 24.1 Employee Action Committee Authority: The Gty of Centerville promotes an environment in which positive working relationships can be formed and fostered through social interaction and Employees can be recognized for their contributions. For these purposes, Employees are allowed to form an Employee Action G:Jmmittee, with a minimum of three (3) and a maximum of five (5) members to be appointed by the Gty Administrator. Members of the G:Jmmittee will elect officers and be responsible for structuring by-laws and operating rules for the G:Jmmittee, which will be reviewed and approved by the Gty Administrator. G:Jmmittee members are authorized to use up to one (1) hour of work time per month for G:Jmminee business. Employee Recognition and Appreciation: The Gty G:Juncil will designate an amount in its annual budget to be used by the G:Jmmittee for Employee recognition and appreciation events. The G:Jrnminee may consider selecting Employees for awards in areas such as longevity, teamwork, innovation, above and beyond, leadership, exceptional customer service, spirit, etc. Awards will consist of plaques or functional items such as clocks or pen! pencil sets and will be of nominal value. Meals served at award ceremonies will be of nominal value and will not include the purchase of alcoholic beverages. ij 23. CELLULAR PHONE USAGE POLICY 23.1 Application General: TIlls policy is intended to regulate the use of Gty-owned cellUlar phones within reasonable, practical parameters. As the number of available cellUlar telephones increases and the efficiencies of cellUlar telephone usage become even more apparent, it is incumbent upon the Gtyto establish reasonable guidelines for the use of cellUlar phones. The Gty of Centerville will benefit by extending the hours essential Employees are available for consUltation through the use of cellular phones. Scope: This policy will apply to all Gty Employees using or having access to Gty- owned cellular phones. 23.2 Guidelines Policy: The following guidelines are established for the use of Gty-owned cellular phones: A) B) cellUlar phones are intended to be used to increase the efficiency and effectiveness of the services provided by the Gty of Centerville. As such, each Employee using a cellUlar phone during the course of his/her workday must determine whether such usage is appropriate under the circumstances existing at the time of the usage. In making such a determination, Employees must consider the cost of using the cellUlar phone in comparison with the cost and practicality of locating a customary telephone service. During work hours personal phone calls will be acceptable in those circumstances where it is necessary to briefly contact someone concerning important matters. Calls of this nature shall be as brief as possible and shoUld be made only when circumstances prevent timely access to customary telephone services. C) During non-work hours Gty Employees having access to assigned Gty- owned cellUlar phones may make reasonable personal phone calls during all hours. Employees having 24-hour access to Gty-owned cellUlar phones and who also use the phone for personal reasons will reimburse the Gty for all personal phone calls, to the extent that the calls exceed the maximum allowable air time. D) Gty Employees who take home a Gty-owned phone will agree to be accessible for Gty business when necessary and practical after regUlar work hours. Upon approval of the Gty Administrator, Employees will be allowed to upgrade to a more expensive pIan for personal reasons if the Employee agrees to pay the difference in cost between the two plans. F) All cellular phones shall remain the property of the Gty and shall be returned to the Gtyupon the termination of employment or if the cellular phone is no longer necessary for work-related purposes. Anyinappropriate use of phones may subject to the Employee to disciplinary action. Any additional charges will be paid by the Employee. PROPOSED PERSONNEL POLICY SUBSTANTIVE CHANGES City of Centerville Council Work Session April 28, 2004 Section 2, Definitions: Defined Full-Time Employee as one who works a minimum of 32 hours per week, to coincide with the City's health plan language. Defined Part-Time Employee as one who works less than 32 hours per week, and removed all references throughout the policy to Part-Time Employees accruing benefits. Section 3.4, Classification of Job Duties: Updated salary range definition to coincide with pay equity guidelines. Section 6.7, Compensatory Time: Added provisions to allow for aClirual and use of compensatory, in lieu of overtime, on a limited basis. l(D {.vi" 10W'1"~ Section 8, Personal Time Off: Replaced all language referring to vacation and sick leave with new PTO policy. Section 8.2, PTO Accrual: Restored accrual rates to the 2002 level as compromise to not adopting union equivalent. Former rates, Current Rates and Union Rates for combined vacation and sick leave per pay period are as follows: Prior to 12/9/02 Current Rates Union Rates 0-4 ears 5-9 ears 10-15 years 16+ ears 6.77 hrs 8.31 hrs 9.85 hrs 11.38 hrs 6.77 hrs 8.31 hrs 9.85 hrs 6.77 hrs 8.31 hrs 9.85 hrs 11.38 hrs 12.92 hrs Section 9, Leaves of Absence: Added several definitions required by State Statute. Reference is made to the federal Family and Medical Leave Act (FMLA.) The City is a covered entity; however, due to the number of employees, the provisions ofthe Act would not apply unless the City specifically adopted the provisions. City Council should decide whether or not the City wishes to adopt the provisions of the FMLA or stipulate different provisions. Section 10, Temporary Light Duty Policy: Added light duty policy to accommodate workers' comp regulations. Section 11, Insurance Plans: Removed old language and replaced with new cafeteria plan language. Section 12.2, Employee Training: Reinstated and updated language pertaining to employee education. A portion ofthe former policy did not carryover into the current policy and we are not sure why. Section 12.3, Travel Reimbursement: Added provisions relating to travel reimbursement necessary to comply with IRS regulations, referred to as an "accountable plan." Section 14, Safety: Made references to compliance with City's safety policy, which may also need updating. Section 16, Grievances: Added language providing guidelines for appropriate action for employees who have grievances. Section 20.2, Code of Conduct and Ethics: Changed threshold for value of "gift" acceptance from $50.00 to $5.00. This was believed to be a typo. Council should adopt a separate ethics policy for elected officials. Section 20.7, Confidential Information: Made reference to Minnesota Government Data Practices Act. Council should consider expanding data practices policy in accordance with the Act. 11. INSURANCE PLANS 11.1 Health Insurance Upon proper application and subject to payment of any required premiums, all regular full time Employees, working at least 32 hours per week, will be required to be covered by the City's health, dental and life insurance plans. Subject to the payment of the required premiums, an Employee's dependents may also be covered under such plans. 11.2 Cafeteria Plan The Employer will contribute an amount, designate of the City Council, to the Employee for Employer. Employees are required to choo defined in the Employer's Cafeteria Plan the required core benefits have" been pure of the plan, such as: (A) The purchase of additi offered through the Empl (B) (C) nsored deferred compensation (457) (D) LOYEE TRAINING/TRAVEL 12.1 raining and Education Employees ma take advantage of training opportunities to help them improve the performance of theit present work assignments and to prepare them for future assignments. Cost, staffing, benefit to the City, and other appropriate issues will be considered by the City Admioistrator in approving requests or assigning training. Time to attend required training will normally be paid time. Advance payments may be authorized for conference registration fees. Once paid, Employees will be held responsilile for those fees if the Employee later chooses not to attend, unless unforeseen circumstances appear such as an illness, death in the 24 L. family, emergency, etc. Other expenses eligible for reimbursement require receipt of appropriate documentation. Required documentation and receipts vary depending on the event. Meals, lodging and parking require itemized receipts. 12.2 Tuition Reimbursement/Educational Assistance The City of Centerville encourages its Employees to enroll in job related educational programs and may provide support through tuition reimbursement. This does not include reimbursement for textbooks or study materials. Under IRS regulations, the reimbursement of certain courses must be reported as taxable income to the Employee. Requirements: In order for a class to qualify for r . conditions must be met: . The class/course must be job re The class/course must be higher learning or vocational The class/course must be app to enrolling; The Employee m receive reimburse of . . . (C or better) in order to . . been completed, the Employee must grade form and the original receipt for . emain with the City for one year after the class/course, or reimburse the City for the total cost n in the previous one-year period. bursement forms are available from the Finance Director. A pleted Tuition Reimbursement form will be placed in the file. Limit: oyee may receive in excess of $500 tuition reimbursement in any one calendar year. The City Council may waive this limitation in unusual circumstances where it is determined that there is a justifiable City need for an Employee to take additional schooling. 12.3 Travel Reimbursement The City Council may authorize travel at City expense for the effective conduct of City business. Authorization must be granted prior to incurring the actual expenses. Employees so authorized will receive reimbursement for necessary and incidental expenses according to the terms outlined in this policy and IRS requirements for an 25 "accountable plan." Receipts and/ o~ oth~ verification of the expenses, which show the actual cost of lodging, meals and incidental expenses, ~e ~equired fo~ ~eimbursement. A) Automobile Expense: When Employees ~e ~equired to use their own vehicles to conduct City business o~ to attend app~oved training, the City will ~eimburse the Employee fo~ mileage at a nte established by action of the City Council The adopted ~ate will ~emain in effect until a change in nte is app~oved. B) Overnight Travel: Lodging expenses include a lodging while away on approved ttavel o~ ~eimbursement fo~ an individual attendee of a normally be the least expensive single ~oom ~ the conf~ence, o~ the actual cost, whichev~ . sonable cost of The amount of ce o~ meeting will t the location of C) es: When prio~ approval bas been gnnted by the ~egJ.Stration and/ o~ conf~ence fees ~e eligible fo~ o~ p~e-payment. E) Alternative Travel: The City will ~eimburse the Employee fo~ nec parking fees incutted fo~ ~equired travel. The City will also ~eimburse fo~ the Employee fo~ the ~easonable cost incutted when app~oved travel is made by oth~ means of transpomtion, but will be ~eimbursed only the amount that would have been ~eimbursed had the Employee traveled using the least cosdy method, unless othtlWise app~oved. F) Overnight Travel Away F~om Home: Tnvel away from home is work time when it cuts across the Employee's work day. The time to be considtted is not only hours wo.:rked on ~e~ wo.:rking days during nottnal wo.:rking hours, but also during the corresponding hours on non-wo.:rking days. 26 Example: If an Employee regularly works from 8:00 a.m. to 4:30 p.m., Monday through Friday, the travel time during these hours is work time on Saturday and Sunday as well as on the other days. Thus, if travel is overnight and done outside of working hours, the travel time is not compensable. 12.3 Applicability General: Travel and expense reimbursement provided for in this section shall apply to both the Employees of the City and the members of the Council traveling specifically to conduct City business. 13.1 Employee Performance Appraisal Schedule: Employees will normally have th during the six- (6) month prob ary perio thereafter. Performance evaluati. . and will be considered when p appraisals will be conducted in appraisal system. ceo evaluated at least once every twelve (12) months ployee personnel files emplated. Performance established performance 14.1 ealth and safety of each Employee of the City and the tio . es and illnesses are of primary importance to the degree possible, management will maintain an environment ards and has established safety policies and procedures for dherence to these policies is the responsibility of each administration of this policy is the responsibility of ea~h department Violation of established policies and rules may result in disciplinary action under the discipline section of the City's personnel policy. 14.2 Safety/Accident Reporting Fonns: Workers' Compensation and OSHA laws require that Employees involved in job-related accidents and sicknesses file a First Report of Injury as soon as possible. If necessary the Employee's department head may file the report on behalf of the injured or sick Employee. The department head is also responsible for filing an accident report with the City's Safety Officer. 27 15. SMOKING 15.1 General ProWbited: In the inteJ:est of good health, the City discourages Employees from smoking. Smoking is prohibited within all City buildings. Approved Areas: The City Administrator will designate specific outdoor areas as smoking areas. There will be no smoking in areas not designated as smoking areas. If smoking results in discomfort to others, smokeJ:s are req' to stop smoking. Smoking in non-approved areas may result in disciplinary ac . Step 1: e followed by all Employees .. agreement. In all cases, ted by the action of the 16.1 Grievance Procedure first . e his /heJ: grievance, in writing, ernsor within ten (10) working days of 'evance arises or the date upon which e of the action. In cases where the rsely affected by an action administeJ:ed by a oyee 0 a her rank than that of his/her immediate e affected Employee shall file his /heJ: grievance, in . e City Employee whose action the adveJ:sely affected eving. Notice must include the following: Statement of the grievance and relevant facts; The remedy sought; and C) The specific provision of the personnel policy (If applicable). The supeJ:Visor shall respond to the grievance, in writing, within ten (10) working days. Step 2: If the Employee is dissatisfied with the response of his/her supeJ:Visor, the Employee may, within ten (10) working days from the date of the response, appeal the grievance to his/her department head. The department head shall respond to the grievance, in writing, within ten (10) working days. 28 Step 3: Step 4: If the Employee is dissatisfied with the response of the department head, he/ she may, within ten (10) working days appeal to the City Administrator. The City Administrator shall respond to the grievance, in writing, within ten (10) working days. If the Employee is dissatisfied with the decision of the City Administrator, he/ she may appeal, in writing, to the City Council within ten (10) working days of his/her receipt of the City Administrator's decision. The City Council shall consider the written appeal, along with the City Administrator's St esponse, and any other pertinent information developed ut the grievance procedure. The Council shall then decide er to affirm the City Administrator's decision or consider ew. In general, Council review will be limited to this personnel policy and will not relate to issues Assistance: An aggrieved Employee may grievance by any person acting in an adviso relevant to the grievance. At any step in the authority may request additional . tion, or c he/she deems necessary. 17.1 Objective e presentation of his/her assist in presenting all facts procedure, the supervisory additional investigation, as ements set forth above shall ve procedure. Time limits set forth in on written consent of both parties. Any y be waived by written consent of the presentative to whom the grievance is and presentation of grievances shall be accomplished s when consistent with Employee duties and eve Employee shall be allowed a reasonable amount of y, to present evidence concerning his/her grievance. 17. DISCIPliNE Supervisory Responsibility: Supervisors are responsible for mainta1n1ng compliance with City standards of Employee conduct. The City reserves the right to use discretion and to deviate from this policy. Employee Responsibility: City Employees are expected to fulfill their duties and responsibilities at the level required, including observance of work rules and standards of conduct. Failure to do so may result in disciplinary action. 29 Non-Discrimination: Discipline will be administered in a non-disrnmin.tory manner. The supervisor will normally investigate any allegation on which disciplinary action might be based bel ore any disciplinary action is taken. 17.2 Process The City of Centerville will normally use progressive and fair discipline with full-time regulax Employees. There may be circumstances that warrant deviation from the suggested order of the disciplinary process. The normal process is as follows: A) Oral Warning: Oral warning should normally' infraction to clarify expectations and put the performance or specific behaviors need to the first infraction is so serious that an oral B) Y state the on for the roblems that led to the y the supervisor to correct etable or goals set for action that could result if The warning will be given t she has receive . the written sign acknowledging that he or opy for their records. Another copy of the Employee's personnd file. o than oral warnings and normally follow n em is not corrected or the behavior is not ed, given a reasonable period of time for improvement. require skipping either a verbal or written warning, or The Employee will normally be notified in writing of the e suspension, either prior to the suspension or shortly pon the Employee's return to work, the Employee will be given a statement outlining further disciplinary action possible should the problem continue or reoccur. A copy of the written document shall be placed in the Employee's personnd file. An Employee may be suspended pending an investigation of an allegation. If the allegation is proven false after an investigation, the rdevant written documents will be removed from the personnd file and the Employee will receive any compensation to which he/she would have been due had the suspension not taken place. 30 For any suspension, or any second suspension for the same individual, the City Council shall review the reasons for the suspension and upon review, will make a recommendation as to the future status of the Employee and his/her continued employment with the City. D) Dismissal: The City Council may dismiss any Employee following a five- (5) day suspension. The dismissal notice shall be in writing and shall contain the reason for dismissal 17.3 Reasons for Dismissal 18.1 General Subject to the provisions contained in Minnesota Statutes City Council may dismiss an Employee for substan behavior not in keeping with City standards, or if . Council, the Employee is unsuited for employment . 31 - 181.935, the performance or ent of the City Under Minnesota Statute ~ 197.46, removal incompetence or misconduct shown after a only for oviding a working environment free of with this commitment, the City maintains ent, including sexual harassment. This mcluding verbal and physical harassment. ed to make all Employees sensitive to the matter of e the City's strong disapproval of unlawful sexual mployees of their behavioral obligations and to inform them 18.2 General: To provide Employees with a better understanding of what constitutes sexual harassment, the following definition, based on Minnesota Statutes, is hereby provided: Sexual harassment includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical contact, or other verbal or physical conduct or communication of a sexual nature, when: A) Submission to the conduct or communication is made a t= or condition, either explicitly or implicitly, for obtaining employment; 31 B) Submission to or rejection of that conduct or communication by an .individual is used as a factor in decisions affecting that individual's employment; C) That conduct or co=unication has the purpose or effect of substantially interfering with an individual's employment or creating an intimidating, hostile or offensive employment environment and the Employer knows or should have known of the existence of the harassment and fails to take timely and appropriate action. 18.3 Expectations Examples of inappropriate conduct include but are n . Unwanted physical contact Unwelcome sexual jokes or commen Sexually explicit posters or pin-u Repeated and unwelcome requ Sexual gestures Any indication, expressed or or any other condition of empl rejection of unwel sexual req . . . . . es the need to educate its Employees on committed to provide information and t each other and the general public with vironment that is free from unwanted may result in discipline, including possible be evaluated on a case by case basis depending on the . volved. sexual harassment issue to be addressed, it must be brought ent. In order for action to be taken, information must propriate level of management Report to: Employee who believes he or she has been harassed by a co- worker, supervisor, or agent of the City should promprly report the facts of the incident or incidents and the names of the individuals involved to his or her supervisor or in the alternative to the City Administrator. Responsibility: Supervisors should immediately report any incidents of sexual harassment to the City Administrator. If the City Adtninisttator is unavailable, supervisors should report the incident immediately to the Mayor or a Councilmember. The City Administtator (or mayor or councilmember) will investigate such claims and take appropriate action. 32 In addition to notifying one of the above people and reporting the nature of the harassment, the Employee is also urged to take the following steps: A) Clearly indicate to the harasser that the conduct is unwelcome and document that conversation; B) Document the occurrences of harassment; C) Submit the documented complaints to your supervisor, the City Administrator, mayor or councilmember. It is required that the complaint is in writing; D) Document any further harassment or reprisals th is made. Rights: Employees have the right to raise the is complaints with respect to such harassment that there are inherent difficulties in db working relationships among Employees occurred. Because of this, the City urges that be reported immediately to allow rrective ac and initial counseling, if approp . Obligations: Management has sexual harassment. of unlawful harassmen To accomplish . vide an environment free of is 0 ted to prevent and correct es not abridge the rights of the accused. Employees is required. all cases, take action to correct any reported . dence is available to verify the alleged harassment and tions will be investigated. Strict confidentiality is not sexual harassment as the accused has the right to s them, particularly if discipline is a possible outcome. be made to respect the confidentiality of the individuals possible. 19. RESIGNATION General: Any Employee wishing to leave municipal service in good standing must submit a written resignation to his or her supervisor at least fourteen (14) calendar days before an Employee's anticipated leaving. The resignation must state the effective date of the resignation may state the reason for leaving. The City Administrator may waive the notice requirement if it is determined to be in the best interest of the City. L 33 20. CODE OF CONDUCT AND ETHICS . 20.1 Purpose General: The City Council of the City of Centexville requires all Employees of the City to adhere to the following code of conduct and ethics. The purpose of this policy is to establish standards for all such persons by setting forth actions which are incompatible with the best interest of the City of Centexville, its taxpayers or in conflict with state or federal laws. 20.2 Conflicts of Interest No Employee having the power or duty to perform an directly or indirectly interested in any contract, ttansa City of Centerville except as provided for in the t or action may be decision of the Any Employee having an interest in any Council and who gives an opinion or reco on the record of the Council meeting the na No Employee may purchase pers no longer needed by the City und A) B) id process and the Employee has the p oyee who buys the property must not be bid process. gift or gratuity in any size under circumstances in onaD ought to influence him or her in the performance of s or in which it appears to be a reward for any official action or gratuities which may be acceptable are as follows: A) B) Unsolicited items that are donated to and shared by the work group; C) Unsolicited advertising or promotional materials with a value of less than $5.00; D) Unsolicited items such as meals which may be provided during meetings, receptions, or other gatherings where the elected official or Employee is in attendance in his/her official capacity. 34 20.3 Nepotism General: Relatives of current City Employees and City Council members are not eligible for employment in job classification in which a conflict of interest may occur. Therefore, relatives will not be hired where: A) One relative would have' the authority or practical power to supervise, appoint, remove, or discipline the other; B) One relative would be responsible for auditing the work of the other; Relative: The individuals who r blood, grand C) Other circumstances exist which would place the rela actual or reasonable foreseeable conflict between own; or D) where the applicant/City Employee ha organization with whom the City ha judgment, considering the positio applicant/ Employee and the rela improper influence or favor or would J maintained by the City. yed by an the City's The City is not obligated to give s married couples. Definitions: this policy, means any two (2) or more unit or who are related to each other by . on where one of the individuals is the spouse, parent, sister of the other. ployed in a full- or part-time regular status positions, or in a paid on-call positions. ' 20.4 General: No person shall knowingly make any false statement, certificate, mark, rating or report in regard to any test, certificate, or appointment held or made under the City of Centerville's personnel system, or in any manner commit or attempt to commit, any fraud preventing the impartial execution of the provisions of these policies. 20.5 Rendering of Consideration General: No person seeking employment to, or promotion in, the City of Centerville will either directly or indirectly give, render, or pay any money, service, or 35 other valuable consideration to any person on account of or in connection with, the test, appointment, or promotion, or proposed appointment or promotion. 20.6 Use and Safeguarding of City Property General: No Employee shall use or permit the use of City owned vehicles, equipment, tools, machinery, materials, or other property for personal conveniences or profit unless the use is available to the public generally or is provided as a municipal policy for the use of such public official or Employee in the conduct of official business. City Employees shall not store personal prop on City property or in City facilities for more than 30 consecutive days. Access: No City other informati or release such Responsibility: All Employees of the City of Cent or the use of, City vehicles, equipment, machinery or duties must assume responsibility for the safeguar ve authority over course of their iterus. 20.7 Disclosure of Confidential Infonna . saction, zoning decision, or act or action of the City of e confidential information f Centerville, or use such terest of the elected official or of the City. dy of or access to any personnel files or confidential by Minnesota law shall use er authority. dential information will be governed by and treated ta Practices Act. The City Administrator is the Data . onable requests should be referred to the City 20.8 General: P Ca1 activities which are not in violation of state and federal laws are generally permitted. The following political activities are prohibited for City Employees: A) City Employees may not use any official authority or influence for the purpose of affecting the result of an election nor may funds be solicited or contributions received from other Employees for political purposes. B) No campaign materials, pamphlets or buttons may be displayed on City vehicles, City property or by an individual on the work site. 36 21. APPEARANCE AND ATTIRE POLICY 21.1 General The atttte and the appearance of City Employees have a direct reflection on the professionalism in the delivery of City services. City Employees are required to meet the general public on a daily basis as part of their regular work assignment and as such, a neatly atttted City Employee presents a positive image both of themselves and the City of Centerville. The City Administrat Employees who h . them to the City: When deciding on appropriate work atttte, City Emplo discretion in their decisions as clothing needs vary by job considerations should be based on job safety, City im following is not considered appropriate atttte in discouraged: . Tube tops, halter tops, tank Sweats or work out clothing Tight, body-hugging clothing Shorts Clothing that is re Clothing that is fa . . . . . or detenninin g if atttte is appropriate. g appropriate work atttte should direct 21.2 as "casual day" in City Hall On these days nice jeans, logo tshirts and knee-length walking shorts can be worn. on the above list qualify as casual Friday atttte. Employees who bstitute any other day of their choice as a "casual day". LECfRONIC MEDIA USAGE POLICY 22.1 General Guidelines: The City of Centerville's electronic media usage policy is designed to provide clear guidelines to City of Centerville Employees regarding access to, and disclosure of, computer, network, telephone and facsimile systems. Employees increasingly use and exploit electronic forms of communication and information exchange, and have access to one or more forms of electronic media and services 37 (computeJ:, e-mail, telephones, voice mail, fax machines, external electronic bulletin boards, on-line services, and the Internet). Public Property: The City encourages the use of these media and associated seJ:vices, because they make communication more efficient and effective, and because they are valuable sources of information. However, electronic media, data, and services provided by the City are City owned and publicly funded, and their purpose is to facilitate City business. The City Council authorizes the use of the Internet and on-line services for the support of all city tasks. The use of the Internet is public and a privilege, not a right, and may be revoked at any time for unacceptable use. An Employee m and agree to c electronic media returned' e P Procedures: With the rapidly changing nature of "netiquette" which is developing among users of ext Internet, this policy cannot lay down rules to cOVeJ: it expresses the City's philosophy and sets forth use of electronic media, data, and seJ:vices. media, and the services and the tion. Instead, applied to The following procedures apply to all electro A) B) C) Accessed on or from City Accessed using City com Used in a manner that id -paid access methods; the City. 22.2 Authorization ledging that they have read, understand, o Employee will be authorized to use have signed the appropriate statement and 22.3 I edia may not be used for knowingly transmitting, retrieving unications of a disn-imio"tory or harassing nature, or which y individual or group, or which are obscene or sexually explicit, or are of a tory or threatening nature, or for "chain letters," or for any other purpose which is illegal or against City policy or detrimental to the City's reputation. Electronic media may not be used for personal use relating to political, re1igious, or personal financial profit. 22.4 Personal Use Limitations General: Electronic media and seJ:vices are primarily for City business use. Limited, occasional or incidental use of electronic media (sending or receiving) for personal, non-business purposes done on the Employee's personal time is understandable and acceptable - as is the case with personal phone calls. However, Employees need to 38 demonstrate a sense of responsibility and may not abuse the privilege. Such personal use must not consume large amounts of City resources. Employees using electronic media and services for personal use waive any claims to privacy regarding that usage. Any costs incurred by the City due to personal use (such as printing costs, per- minute Internet fees or cellular phone charges) must be paid by the Employee. Excessive personal use will be determined by the individnal Employee's supervisor, and may subject the Employee to disciplinary action. 22.5 Individual Privacy General: Anyone materials must r copyrighted ma users shall not de General: The City also reserves the right, in its discretion, to r electronic files, messages and usage to the extent necessary media and services are being used in compliance with the City policies. Employees should therefore not ass are private and confidential and should transmit . hi ways. any Employee's ure that electronic . th this and other Respect: Employees must respect the co communications and may not attempt to re people's accounts, or "crack" passwords, or br measures, or monitor electronic r corom third patties except by explicit dir other people's electronic to other systems or other omputer or network security s of other Employees or t 22.6 Copyrights cess to other companies' or individuals' y not copy, retrieve, modify or forward e y the copyright owner. Also, network modify files and/or data belonging to other 22.7 . trator reserves the right to override passwords and codes Administrator requests an Employee's password(s), then the e disclosed. Any password used on the system shall be used for f the City of Centerville, not the Employee, and as such will not preclude the City, as the operator of the network, from rightfully entering the network or any other messaging system at any time to review, copy or delete any file or disclose any such file to others. Responsibility: No e-mail or other electronic communications (mcluding facsimile messages) may be sent which attempt to hide the identity of the sender, or represent the sender as someone else or from another organization. Employees are responsible for all electronic messages originating from a computer operating under his/her password. 39 22.8 Excessive Usage General: Electronic media and services should not be used in a manner that is likely to cause network congestion or significandy hamper the ability of other people to access and use the system. Continued impedance of other users through mass consumption of system resources, after receipt of a request to cease such activity, is prohibited. The willful or careless introduction of programs known as computer viruses, Trojan Horses and worms into the City's network or into any external networks or computers can cause such excessive computer usage or even damage a system and so would be a violation of this policy. 22.9 Questions Regarding Policy General: City Employees who have concerns or are security issues regarding the use of data corom discuss their concerns with their supervisor who of contact. t ethical, legal or expected to first point Integrity: Part of the responsibility of ill integrity of City data (an asset). Therefore, the with the City Attomey, will reso swer an Use Policy or its interpretation. should be considered "not acce submitted, in writing, to the City A Use Policy lies with th uneil. . . strator is to insure the drninistrator, in consultation .ons about this Acceptable solved, questionable use o interpretation should be authority for this Acceptable 22.10 Policy Viola. trato eview all alleged violations of this City policy City Attorney may be consulted for technical assistance Clear violations of the policy which are not prompdy ill ulsion of the offending Employee from the City's .tion to disciplinary action, and consistent with the Personnel . argaining unit agreement. 23. DRUG FREE WORKPLACE 23.1 Policy General: In accordance with federal law, the City of Centerville has adopted the following policy on drugg in the workplace: A) Employees are expected and required to report to work on time and in appropriate mental and physical condition, ready to perform the 40 duties of their job. It is the City's intent and ob1ig.1tion to provide a drug-free, safe and secure work envitonrnent. B) The unlawful manufactute, distribution, possession, or use of a controlled substance on City property or while conducting City business is absolutely prohibited. Violations of this policy will result in disciplinary action, up to and including termination, and may bave legal consequences. C) The City recognizes drug dependency as an illness and a major health problem. The City also recognizes drug abus potential health, safety and security problem. Employees nee . p in dealing with such problems are encouraged to use th . insurance plans, as appropriate. 23.2 Drug and/or Alcohol Trea D) Employees must, as a condition of the City's drug and alcohol under a C'rim1n~ 1 drug statu work premises while condu conviction must be made wi required by the D ee Workp Discipline: alcohol or reports t use of ited from possessing or consuming while on the job. Any Employee who se performance is impaired through the will be subject to disciplinary action. s where it is necessary, personal leave may be granted for t or rehabilitation on the same basis as is granted for pr s. Consideration will be given for use of leave of t pay as defined by the City's personnel policies. e City bas also made available access to an Employee rogram (EAP), sponsored by CIGNA Behavioral Health 24. NON-DISCRIMINATION POllCY General: The City of Centerville is committed to a policy of non-di.Niminotion with regard to race, color, creed, religion, age, national origin, gender, sexual orientation, marital status, public assistance status, or disability. Definition: Dismminotion is defined as any overt or covert behavior that excludes access to, admission to, full utilization of, or benefit from any public service because of 41 . race, color, creed, religion, gender, age, national origin, sexual orienmtion, rnatiml smtus, vetemn smtus, age, public assismnce smtus, or disability. Discipline: Employees who participate in dismminotion of any kind are subject to discipline, up to and including t"""inotion. Policy: In keeping with the City's commitment and the requirements of the law, the City and smff will strive to remove any dismm;notion in the treatment of customers, employment, assignment and promotion of personnel, training programs, services and opportunities offered to citizens and smff, location and use of facilities, and in verbal and written co=unications. Complaint Procedure: Employees can bring complain concerns under this policy without fear of reprisal (A) An Employee who believes he/she dismminotion or who believes he/sh report the incident immediately supervisor shall then immediately n complaint. (B) If the conmct with the . problem is with the supe by-pass the immediate s City Administta t prove effective, or if the at his/her own discretion, en complaint directly to the (C) laint in writing, demiling the nature of the the situation prompting the complaint. e time, date and place of the alleged violation, tion that may be pertinent to the complaint. of the United Smtes and the Smte of Minnesom; in the event d to be conmu:y to law by a court of competent jurisdiction from whose final judgm decree no appeal bas been mken within the time provided, such provision shall be void All other provisions of the policy shall continue and remain in full force and effect. 42 Adopted by the City Council of the City of Centerville this _th day of Attest: Signed: .2004. Mayor City Administrator 43 City of CenterviC{e tervi[[e 'Btafiislietf 1857 Code of 'Ethics POlley .7tdoytelt Code of Ethics for Public Officials in the City of Centerville It is imperative that the officials in the public service not only maintain the highest possible standards of ethical conduct in their transactions of public business, but that such standards be clearly defined and known to the public as well as to the public officials. The following Code of Ethics applies to the public officials of the City ofCenterville. SECTION 1. DECLARATION OF POLICY Statement: The proper operation of democratic government requires that public officials be independent, impartial and responsible to the people; that government decisions and policy be made in the proper channels of the government structure; that public office not be used for personal gain; and the public have confidence in the integrity of its government. Purpose: In recognition of these goals, this Code of Ethics is established for all public officials of the City of Centerville. The purpose of this code is to establish ethical standards of conduct for all such officials by setting forth those acts or actions that are incompatible with the best interests of the City, and by directing disclosure by such officials of private [mancial or other interests in matters affecting the City. The provisions and purpose of this code and such rules and regulations as may be established are declared to be in the best interests of the City of Centerville. Education: Recognizing that education in government is the key to having good government, this Code requires that the City Administrator shall arrange for a discussion of the meaning of this Code with new public officials at the organizational meeting of the City Council in January of each year. SECTION 2. DEFINITION OF TERMS Public Official: Any person who has been elected to office, appointed by the City Council, appointed to a City Councilor Commission or hired by the City to serve as a Department Head or Assistant Department Head. This list includes the following: a. A member of the City Councilor other elected official; b. The Department Head and Assistant Department Head of each City Department; c. A member of any City Committee or Commission; d. The City Administrator or like position; e. Consultants retained by the City and those individual professionals (such as but not limited to engineers, architects, lawyers, auditors andappraisers) in the consultant's firm who perform work for the City. I Anything of Value: Money, real or personal property, a permit or license, a favor, a service, forgiveness of a loan or promise of future employment. It does not mean reasonable compensation or expenses paid to a public official by the City of Centerville for work performed. Compensation: A payment of "anything of value" to an individual in return for that individual's services of any kind. Association: A business entity of any kind, a labor union, a club or any other group of two or more persons other than the immediate family. Immediate Family: A reporting individual, spouse, minor children, minor stepchildren or other person residing in the same household. Gift: The payment or receipt of "anything of value" unless consideration of greater or equal value is provided in return. City Administrator: The person who heads up the administration of the operating government ofthe City. SECTION 3. ETHICAL CONSIDERATIONS Statement: Public officials are to serve all persons fairly and equitably without regard to their personal or financial benefit. The credibility of Centerville City government hinges on the proper discharge of duties in the public interest. Public officials must assure that the independence of their judgment and actions, without any consideration for personal gain, is preserved. Guidelines: Specific ethical considerations are enumerated below for the guidance of public officials, but these do not necessarily encompass all the possible ethical considerations that might arise. a. Other Offices or Employment: An elected public official shall not hold another incompatible office as that term has been interpreted from time to time by statute, the courts, and by the Attorney General. Employed public officials shall not hold such incompatible office nor shall they engage in regular outside employment without notice to and approval by the City Council. Elected and appointed public officials shall not hold other office or employment which compromises the performance of their elected or appointed duties without disclosure of said office or employment and self disqualification from any particular action which might be comprised by such office or employment. b. Use of Confidential Information: No public official shall use information gained as a public official, which is not generally made 2 available to and/or is not known to the public, to directly or indirectly gain anything ofvalue. c. Solicitation of or Receipt of Anything of Value: A public official shall not solicit or receive anything of value from any person or association, directly or indirectly, in consideration of some action to be taken or not to be taken in the performance of the public official's duties. d. Holding Investments: No public official shall hold any investment which might compromise the performance of the public official's duties without disclosure of said investment and self disqualification from any particular action which might be compromised by such investment, except as permitted by statute, such as Minnesota Statute g471.88. e. Representation of Others: A public official shall not represent persons or associations in dealings with the City in consideration of anything of value. f. Financial Interest: Where a public official or a member of the public official's immediate family has a financial interest in any matter being considered by the public official, such interest, if known to the public official, shall be disclosed by the public official. If the public official has such a financial interest or if the minor child of a public official has such a financial interest, the public official shall be disqualified from further participation in the matter. g. City Property: No public official shall use City owned property such as vehicles, equipment, or supplies for personal convenience or profit, except when such property is available to the public generally or where such property is provided by specific City policy in the conduct of official City business. h. Special Consideration: No public official shall grant any special consideration, treatment, or advantage to any citizen beyond that which is available to every other citizen. i. Authority: No public official shall exceed his or her authority, or breach the law, or ask others to do so. j. Giving Anything of Value: No elected public official give anything of value to potential voters in return for their votes, promises, or financial considerations which would be prohibited by the State Minnesota Fair Campaign Practices statute. k. Public Funds, etc.: No public official shall use public funds, personnel, facilities, or equipment for private gain or political campaign activities. 3 l. Expenses: Public officials shall provide complete documentation to support requests for expense reimbursement. Expense reimbursement shall be made in accordance with City policy. m. Donations: No public official shall take an official action which will benefit any person or entity because of a donation of anything of value to the City by such person or entity. n. Official Action: No public official shall take an official action which will benefit any person or entity where such public official would not have otherwise have taken such action but for the public official's family relationship, friendship, or business relationship with such person or entity. o. Compliance with Law: Public officials shall comply with all local ordinances and State and federal statutes including, but not limited to, the Criminal Code, Fair Campaign Practices Act, and laws governing the functioning of municipalities, their elected and appointed officials, and employees. SECTION 4. SPECIAL CONSIDERATIONS Voting: Situations can arise where a member of the City Council, a Commission, or a Committee abstains from voting because of a conflict of interest, but his or her abstention becomes a vote either for or against the matter because a majority is required to pass or reject that matter. This can happen where four-fifths vote is needed to pass an issue, or the vote has to be a clear majority and a split vote does not pass or reject. When this happens, the City Attorney must be consulted and the final vote should carry a public notice explaining what took place and how it was resolved. SECTION 5. DISCLOSURE OF FINANCIAL INTERESTS Guidelines: Not later than ninety (90) days after the date of approval of this code, each public official of the City shall file as a public record, in the office of the City Administrator, a statement containing the following: a. A list naming all business enterprises known by the public official to be licensed by or to be doing business with the City which the public official or any member of the public official's immediate family is connected as an employee, officer, owner, investor, creditor of, director, trustee, partner, advisor, or consultant; and b. A list of the public officials and members of the public officials' immediate family's interests in real property located in the city or 4 which may be competing with the interests of the City located elsewhere, other than property occupied as a personal residence. Initial Filing: Each person who enters upon duty after the date of this Code in an office or position as to which a statement is required by this Code shall file such a statement on forms to be provided by the City not less than thirty (30) days after the date of hislher entrance on duty. Subsequent Filings: Each person who made an initial filing shall file a new statement by January 30 of each year thereafter giving the information called for above as of the time of the new statement. If a change in fmancial interest or property ownership occurs between filings, a new filing shall be made within thirty (30) days of the change. Immediate Family Interest: The interest of any member of the immediate family shall be considered to be an interest of a person required to file a statement by or pursuant to this ordinance. Non-Business Organizations: This Code shall not be construed to require the filing of any information relating to any person's connection with or interest in any professional society or any charitable, religious, social, fraternal, educational, recreational, public service, civil, or political organization, or any similar organization not conducted as a business enterprise and which is not engaged in the ownership or conduct of a business enterprise. However, if any such organization seeking any action or benefit comes before the City Council, then membership in the organization shall be a potential conflict of interest and must be reported as such to the City Administrator by the public official in an amended disclosure statement. The other stipulations of this Code then apply. Responsible Authority: The City Administrator shall inform each person who is required to file of the time and place for filing. The City Administrator shall inform the Council whenever a person who is required to file a statement fails to do so. Adopted by the City Council of the City of CenterviIle this _ th day of ,2004. Attest: Signed: City Administrator Mayor 5 tervi(fe .L~<:Jid~;- City of Centerville Disclosure of Financial Interests Each public official, as defined in the City of Centerville Code of Ethics Policy, shall file a "Disclosure of Financial Interests Statement" not less than thirty (30) days after the date of his/her entrance on duty. Each public official who made an initial filing shall file a new statement by January 30 of each year thereafter giving the information called for above as of the time of the new statement. If a change in fmancial interest or property ownership occurs between filings, a new filing shall be made within thirty (30) days of the change. ......................................................................... DISCLOSURE OF FINANCIAL INTERESTS STATEMENT I, , a duly elected or appointed public official of the City of (Name) Centerville, hereby affirm that I serve the City of Centerville in the capacity of , and make the following representations concerning any (position) financial interests I may have with the City of Centerville. 1. A list naming all business enterprises known by me to be licensed by or to be doing business with the city, which I or any member of my immediate family is connected as a (an) employee, officer, owner, investor, creditor of, director, trustee, partner, advisor, or consultant: 2. A list of my interests, or the interests of my immediate family, in real property located in the City, or which may be competing with the interests of the City located elsewhere, other than property occupied as a personal residence: Date Signature of Public Official t{JMIudtud General Fund Monthly Financial Report Month Ended May 31, 2004 % of year- 41.67% MTO YTO Budget Variance % of Budget 05131104 2004 2004 +(-) Used Revenues: Property Taxes 0.00 0.00 1,539,329.00 1,539,329.00 0.00% Other Taxes & Assessments 0.00 43.00 500.00 457.00 8.60% Licenses & Permits 10,540.49 87,500.86 259,200.00 171,699.14 33.76% Fines & Forfeits 2,533.08 7,391.32 22,000.00 14,608.68 33.60% Intergovernmental 000 0.00 116,223.00 116,223.00 0.00% Charges for Services 0.00 7709 1,248.00 1,170.91 6.18% Interest Earnings 220.94 7,026.83 25,000.00 17,973.17 28.11% Miscellaneous Revenues 0.00 113,137.34 25,500.00 (87,637.34) 443.68% Refunds & Reimbursements 0.00 500.20 13,000.00 12,49980 3.85% Fund Balance 0.00 0.00 000 0.00 0.00% Total Revenues 13,294.51 215,676.64 2,002,000.00 1,786,323.36 10.77% Expenditures: Cunent General Govemment Mayor and Council 1,264.88 5,183.51 17,500.00 12,316.49 29.62% Elections 0.00 000 5,800.00 5,80000 0.00% Planning & Zoning 267 03 2,197.27 6,000.00 3,80273 36.62% Administration 24,194.74 140,889.21 286,69100 145,80179 49.14% Financial Administration 9,500.00 19,500.00 12,000.00 (7,500.00) 162.50% Assessing 000 16,372.00 17,500.00 1,12800 93.55% Legal 8,844.39 27,814.27 78,000.00 50,185.73 35.66% City Hall 1,120.88 8,682.55 22,300.00 13,617.45 38.94% Total General Govemment 45,191.92 220,638.81 445,791.00 225,152.19 49.49% Public Safety Police Protection 40,770,41 203,852.13 484,549.00 280,696.87 42.07% Fire Protection 0.00 41,338.50 175,845.00 134,306.50 23.54% Building Inspection 2,358.04 15,694.44 150,621.00 134,92656 10,42% Electrical Inspection 000 1,591.20 10,000.00 8,408.80 15.91% Civil Defense 0.00 736.37 1,300.00 563.63 56.84% Animal Control 0.00 121.96 1,000.00 878.04 12.20% Total Public Safety 43,128.45 263,334.60 823,115.00 559,780.40 31.99% Public Works Public Works 8,578.85 57,237.46 170,356.00 113,118.54 33.60% Engineering Services (66,338.60) 4,155.80 15,000.00 10,844.20 27.71% Recycling 411.90 1,299.24 8,000.00 6,700.76 16.24% Streets 2,516.70 4,632.56 21,400.00 16,767.44 21.65% Street Lighting 1,996.05 8,027.92 25,000.00 16,972.08 32.11% Total Public Works (52,835.10) 75,352.98 239,756.00 164,403.02 31.43% 6/2/2004 12:49 PM budget May04.xls MID YTD BUdget Variance % of Budget 05131104 2004 2004 +(-) Used Culture and Recreation ParklRec. Committee 000 660.00 1,80000 1,140.00 36.67% ParklRec. Programs 0.00 3,080.22 10,012.00 6,931.78 30.77% Park Maintenance 3,822.98 14,786.02 64,020.00 49,233.98 23.10% Total Culture and Recreation 3,822.98 18,526.24 75,832.00 57,305.76 24.43% Economic Development Economic Development 345.42 5,878.11 4,000.00 (1,878.11) 146.95% Total Economic Development 345.42 5,878.11 4,000.00 (1,878.11) 146.95% Unallocated Refunds & Reimbursements 000 (0.38) 0.00 0.38 0.00% City Festival 000 18,000.00 15,000.00 (3,000.00) 120.00% Total Miscellaneous 0.00 17,999.62 15,000.00 (2,999.62) 120.00% Total Current Expenditures 39,653.67 601,730.36 1,603,494.00 1,001,763.64 37.53% Capital Outlay General Government 0.00 105,139.24 25,000.00 (80,139.24) 420.56% Public Safety 24,318.48 24,318.48 0.00 (24,318.48) 0.00% Streets and Highways 000 (12,572.00) 373,506.00 386,078.00 -3.37% Culture and Recreation 0.00 0.00 000 0.00 0.00% Total Capital Outlay 24,318.48 116,885.72 398,506.00 281,620.28 29.33% TOTAL EXPENDITURES 63,972.15 718,616.08 2,002,000.00 1,283,383.92 35.89% EXCESS (DEFICIT) OF REVENUES (50,6n.64) (502,939.44) 0.00 502,939.44 N1A OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating Transfer In 1,890.00 14,239.31 0.00 (14,239.31) N/A Operating Transfer Out 000 0.00 000 0.00 N/A TOTAL OTHER FINANCING 1,890.00 14,239.31 0.00 (14,239.31) N1A SOURCES (USES) EXCESS (DEFICIENCY) OF (48,787.64) (488,700.13) 0.00 488,700.13 REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 6/2/2004 12.49 PM budget May04.xls WUludft:ed Water Fund Monthly Financial Report Month Ended May 31, 2004 % of year- 41.67% MTD YTD Budget Variance % of Budget 05131104 2004 2004 +(-) Used Operating Revenue: Charges for Services 23,548.10 25,892.77 175,000.00 149,107.23 14.80% Total Operating Revenue 23,548.10 25,892.n 175,000.00 149,107.23 14.80% Operating Expenses: Salaries and Benefits 3,703.40 17,141.42 63,779 00 46,637.58 26.88% Supplies 17.02 3,084.91 31,100.00 28,015.09 9.92% Other Services and Charges 15,364.83 20,278.07 19,050.00 (1,228.07) 106.45% Utilities 365.67 1,027.64 3,000.00 1,972.36 34.25% Depreciation 0.00 0.00 30,500.00 30,500.00 0.00% Total Operating Expenses 19,450.92 41,532.04 147,429.00 105,896.96 28.17% OPERATING INCOME 4,097.18 (15,639.27) 27,571.00 43,210.27 -56.72% Nonoperating Revenue (Expense) Interest on Investments 340.00 8,665.00 15,000.00 6,33500 57.77% Special Assessments 17,445.55 17,445.55 40,000.00 22,554.45 43.61% Hook up Fees and Unit Charges 1,806.86 14,14652 75,000.00 60,853.48 18.86% Interest Expense 0.00 (895.82) (9,190.00) (8,294.18) 9.75% Refunds & Reimbursements Rev 33.60 426.61 5,000.00 4,573.39 8.53% Refunds & Reimbursements Exp (1,052.00) (2,214.00) (5,000.00) (2,786.00) 44.28% Total Nonoperating Revenue 18,574.01 37,573.86 120,810.00 83,236.14 31.10% (Expense) INCOME BEFORE OPERATING 22,671.19 21,934.59 148,381.00 126,446.41 14.78% TRANSFERS OPERATING TRANSFERS OUT (3,635.00) (3,635.00) 0.00 3,635.00 NJA NET INCOME 19,036.19 18,299.59 148,381.00 130,081.41 12.33% CREDIT FOR DEPRECIATION ON 0.00 0.00 0.00 0.00 0.00% CONTRIBUTED ASSETS NET INCREASE IN RETAINED 19,036.19 18,299.59 148,381.00 130,081.41 12.33% EARNINGS 6/2/2004 1:53 PM budget report water May 04.xls 6/2/2004 2:07 PM budget report sewer May 04.xls City of Centerviffe Narrative for Interim Financial Statements Month Ended May 31, 2004 Attached are interim financial statements for the General Fund and Enterprise Funds for the City of Centerville. These reports are intended to illustrate how city operations are progressing financially during the year. The interim financial statements are unaudited and do not reflect all fmancial transactions that will be recorded for the year. Accounting entries will be made after year-end to record accruals (payables and receivables) and will be reflected on a final report. Therefore, this report should only be used as a guideline until a final report has been prepared. General Fund Revenues: 1. Taxes Property tax revenues are received from the county in July, December and January. Therefore, no property tax revenue has been recorded to-date. 2. Intergovernmental State payments for police and fire aid will not be received until September or October. 3. Licenses and Permits Permit revenues are projected to be within budget for the year. However, whether or not Pheasant Marsh Phase III moves forward may make a difference in 2004 revenues. Permit revenues will begin to drop off as the City reaches full development potential. Next to taxes and intergovernmental revenue, permit revenue is the third largest source of city income. 4. Charges for Services Assessment searches and map sales are below average for the year. Since charges for services are a minor part of the budget, the overall impact is negligible. 5. Interest Interest revenue is expected to come in at or above budget for the year. Monthly revenue will fluctuate as instruments come due. We continue to invest idle funds prudently; however, as construction on the water tower proceeds fund balances will be declining. 6. Fines and Forfeits The City receives fine revenue a month in arrears, which explains the budget deficit in the fines and forfeits line item. 7. Miscellaneous YTD Miscellaneous Revenues include a total of $110,000 from Mr. Dennis Shudy in payment for the Cedar Street Park property. The City payed the County $100,000 for the property. 8. Refunds and Reimbursements The refunds and reimbursements line item contains items that do not have an affect on the City's budget, such as pass-through gambling funds. 9. Transfers In Administrative costs were transferred from the Capital Project Funds. Expenditures: 1. Financial Administration The audit is complete and payment has been made to the City audit firm. An additional $9,500 in expenses occurred this year as a result of implementing GASB 34 and the SAS 99 fraud investigation component. Much ofthe additional fee is a one-time set up charge. The City implemented GASB 34 one year ahead of schedule and did not budget for the additional fees. 2. Assessing Payment was made to Anoka County in March for this year's assessing. 3. Legal Legal charges for January through April are reflected in the legal charges line item. 4. Engineering Engineering charges for the month of January through April are shown in this report. An adjustment was made to reclassify 2004 street improvement charges to a capital project fund. 5. City Hall Increased energy costs may cause a year-end deficit in the city hall account. 6. Police Protection Monthly payments are made to the Centennial Lakes Police Department in the amount of $40,770. 7. Fire Protection Payments are made quarterly in the amount of $20,669.25 to Centennial Fire Department. Two payments have been made. The budget also allows for the pass through of state fire aid, which will not be received until September. 8. Electrical Inspection The electrical inspector bills the City on a quarterly basis. The first quarter is reflected on this report. Fees are collected to offset this expense. 9. Animal Control The budget for animal control for 2004 was increased to accommodate increasing dog impounds. 10. Streets The deficit in the YTD Street Account reflects a beginning-of-the-year accounting entry, which is normal and will be adjusted when the final construction contract for Mound Trail is paid. 11. Parks and Recreation Skate park attendants were hired and used in January of this year. Maintenance expenses are below budget due to staffing levels. 12. Capital Outlay The General Government line item includes the purchase of the Cedar Street Park, which was sold to Mr. Dennis Shudy. The Street YTD Capital Account reflects a beginning-of-the-year accounting entry, which is normal and will be eliminated when the final payment on the contract is made. The Public Safety line item reflects the purchase of a new pick-up for the Building Inspector. 13. Transfers Out No transfers were made. Enterurise Funds 1. Water and Sewer Both funds show positive operating revenue. Operating revenue will fluctuate due to the quarterly nature of utility billing. Special assessments are received at the same times as property tax revenues. The assessment revenue shown to-date reflects pre-paid assessments. Prepared By: Approved By: Finance Director Administrator Narrative.doc . t .. City of Centerville - -- ---- -.----- - ------ --- CASH/GENERAL LEDGER BALAN~E RECONCILIATION - ,- ... -- -. -- -- --- - May 31,2004 . . - -- - Balance Illlr I!.ank Statement Main.street Bank Checkin.g ,Account #3017115 I $443,574.60 T()tal Checking Account Add Outstanding Deposits $0.00 Total Outstanding Deposits . Less O.utstandin.9 Checks See attached list ($215,421.86) Total Outstanding Checks Checking Account Balance Add Investments See attached list $7,550,007.63 Total Investments TOTAL CASH PER BANK TOTAL CASH PER GENERAL LEDGER May 31, 2004 DIFFERENCE BETWEEN BANK AND GENERAL LEDGER 6/1/2004 11:51 AM - .. 1 . $443,574.60 . $0.00 . . ($215,421.86) $228,152.74 $7,550,007.63' ; $7,778,160.37 $7,778,160.37 , I $0.001 bank reconciliation May 04.xls I City of Centervflle Schedule of Cash and Investments ----- M01lthEndedi"Y31.2004 ----- . ----r!Accou.ntNumbe.'!-; Fa.... . Inte"''' Acqu;"llIon Call puo r ~~ -------L--- Acco"!ntYalue II Rate _Dae. Data _Date. Interest MainstreetBank _1_ ~ Checkinll__-=- - 3017115 $228.152_141 O.~__ ~146.97 FlexibleCDSavings_ 132133~~262,439.98~~6126103 _1_ _ ~01.92 Certificate of De~ .300195 --1 $.106,949.23 4.50% 1Qf1(j,102 10)10107 $2,372.73 CertiffCateofDeposi~ 1300196 - I $211,370.49 3.70% 10/10102 I ~ 10/10101 53,867,18 Certfficateof~_ 300191_ $212,315.54 4.00% 10nOI02 _ 10110105 ~.74 Certificaleof Deposil 300198 _ $0.00 2.45% 10/10ml- _ 04/10104 $1,387.96 Certifica.teofDeposi~ 300~ $154.896.92 4.10% 10124~ 10124105 $3,135.66 Certlfjcaleof~ 300259 $156,190.13 3.25% 12/05102 O~5J05 $1,255.40 CertfficateofOe~~ 300265 $208,253.51 3.25% 12/13102 06/13105 $1.673,86 Certificate of Deposit 300266 $157,160.33 3.75% 12113.!02 12/13107 $1,455.73 CertificateofDepos~ 300~ _ $102,906.63 2.30% 12113/02 _ 06113104 $586.73 Certificate of Deposit _ 30027L- $103,290.70 2.60% 12/17102 12117104 ~.24 c. ..... cateOfDe~_30027.3 .~$104''26'75 3.25%. 12117102 06117/05 $836.93 Certificate of Deposit _ 300~ $205,982.12 2,95% . 04/16/03 '0116/05 $3,013.10 CertificaleofD~ _ 300375 _ _ $0.00 2.01% 06103103 03103/04 $503.64 CertificateofDepo~ 30~ _$0.00 2.01% 06109103 _ 03109104 $1,150.49_ Certificate of Deposit 300382 $0.00 2.01% 06110103 03/10/04. $755.46 CertificaleofOepo$it - - 30044~. $152,832.72. 2.50%_. 08J01J03 1110H04 I $1,887.51 CertificateofDepo~ 300~ $100,934.93 3.80% 12104/03 12/04/0~.$934.93 C~lCatttof~_ 30056~ $1oo,623.2~ 2.52% 12/04/03 12/04IOLI.~3.29 Certificate of Deposit 300563 ~,OOO.OO 2.10% 12/04103 11/04104------.-!Q,Q0 C&rtificateofOe-pos~ 300.~ $200,000.00 2.10% 12104103 11104/04 $0.00 Certificate of Deposit '_ 3005t?~ $100,000.00 2.10% 12104103 11104104 . _$0.00 CertfficateofD~_ 300566 $2~1,558.22 2.50% 12/12103 12/12/06 $1,558.22 Certificate of Deposit 300567 ----1!QQ,.000.00 2.10% 12/12103 11/12/04 ~ Certificate of Depos~ 300~ _ $100,000.00 2.10% 12116103 11116104 $0.00 c......lcateofDeposit_~~_ $100,548.49 2.20% 12/18103 12118105 $548.49 CertiflcateofD~ _ 300584 ~,623.29 2.50% 12/18103 12118/06 $623.29 CertificateofDepo~ ~~S87 $100,~B.49 2.20% .12119103 12/19105. $548.49 Certificate of Deposit _ ----BQQ6~ _ $100,000.00 2.45% 03109104 P9/09/05 $0.00 CertificateofD~ _1300704_.---.!1?0,OOO.OO. 4.00% 03123104.._ 03/23109 ~ $0.00 Certificate of Deposit 300705 $150,000.00 2.55% 03l2~ 03123/06 - $0.00 Certifk;a~ofOeposit.. ..1300133 $112,806.26 2.28%. 04/12104..~ 07/12/0~'-$0.00 CertificateofDe~_ 300769_ ~OO,OOO.OO 2.73% \ 05118104 _ u.s. Baok ~ - S5534510.76_iFF. . $40527.96 Certificate of Deposil '13006093151. ~1,245.20 2.47% 07/12n4 _ 07/12104 ...~37 Certificate ofDeposit . ----+4~70 $1,497.95 2.47% 12130f76. . 0613lli04 $36.54 MBIA . -~~ . ~743.15 -- ______~ ~ .. .. $66.91 4M Fuo. ==-:~ ~Hl034'()001 $5,017.03 0.64% -I . - - 113.82 5017.03_ -------"'3,82 Smith BarneY' ._- Mane Funds Smith Bam ~900.39 0.59% $34,165.14 CertifiC8teofDeposit_ Ca . _~ - $100,000.00 4.90% -11/13101 -'1/22106 Ce~of~ ~ DIrect Merchants $100,000.00 5.85% 06107/01 06114/06 Certificate of De . slt(step6,~irstBankPR $96,000.00 4.00% _ 06105102 06/26/04 06/26109 CertiflC(llte 01 Deposit (discounted) CIS Bank II $89,100.00 4.00% 03/28103 03128104 03128/11 CertificateofD~_ lehmann~~,OOO.OO 4.@~2@0I03 06/30(04 12130/10 FHlMG{statlralel_ ~'33FO-WT-2 ----1~l.00 - 3.~..:::IQ?!8102 10/15103 10f15109 FHlMCM . 31292S-BR-O . $0.00 5.2S% 06/Q5I02 03118/04 03118109 FNMA - -- - 3136F2-WY-o - j -------so.oO 4.50% 12113102 12/11103 06/11/10 Fmv;:- - 3136F2~X7-8 ----s205,OOO.OO 4.00% 02107103 '02106104 08106110 FHlMC Jdiscouritedl 3128X1-MZ-7 I. $99,750.00 3.00% ' 06130103 I 12/30103 06130109- 1_ fHLBC !31339X>R0-8 $100,000.00 3.25% 0613OJ03 09130103 12/30108 .FHLMC. .==-: ~3133FO-2C.2 $l~,OOO.OO 4.00% 08114103 - 08115104 02115109 II - FNMA . 31363F3-2K-1 $0.00 4.00% 09/10103 11/13103 2/13io9 '- FHlMC -- 3128X1-7F-8 ~,000.00 3.50% 11128103 12106/04 12/06/11 t-- FNMP;-- -..- 3136F4-G8-1 -$0.00 4.00% 12/30103 03103104 12/30108j~ FHlMC(stepratel._ 3128X2-ZU-2 $99,937.50 4.00% 03117104 03117105 09117112- FHlMC (sle~._ 3128X2-57-1 $150,000.00 3.50% 03/24104 03124105 09124/12 FHLMC 3133F1-DH-7 $150,000.00 4.00% 03125104 03115105 03115112 FHlSC- -- 3133X5-N5-3 $250,000.00 4.25% 04119104 07/19104 10/19/11 FNMA 3136FS-QC-8 $2<10,394.17 4.13% 04f2.2J04 07108104. 0410811 =-j . FHlSC -~ - .~ $100.411.37 4.00% 05106104 ~ FNMA ---r- $140,336.00 4.eoy., 1 05106J04 w,.__.....:J - .. ::.::. .f.k..... :.:,::':: p"----caitl-_==_~ i '- ------1- ... ... _ Chan Fund ---------rKim '-------stQO--:oar----- ~ ~ ~~~ $1~OO Total Pe Cash 200.00 61112004 1:23PM schedule of investments May04.xls L_ . , CITY OF CENTERVILLE Cash Balances 06/01/04 1 :20 PM Page 1 Cummt Period: MAY 2004 MID MID Cunent FUND Deser Account Debit Credit Balance Cash GENERAL FUND G 101-10100 $104,70864 $161,37155 $589,95267 MOUND TRAIL DEBT SERVICE G 306-10100 $6.00 $0.00 $21,526.00 21ST AVE IMP DEBT SERVICE G 308-10100 $9.00 $0.00 $34,546.48 IND PARK TIF 1-4 DEBT SERV G 317-10100 $0.00 $0.00 -$8,660.41 PARKVIEW DEVELOPMENT DEBT SERV G 324-10100 $82.00 $0.00 $308,107.44 ELEM WATER MAIN EXT DEBT SERV G 325-10100 $0.00 $0.00 -$817.08 G.O. Bond Pheasant J 2001 G 327-10100 $150.00 $0.00 $563,60304 G.O. Bond Hunters Crossing I G 336-10100 $40.00 $0.00 $151,01484 PHEASANT MARSH II G.O. 2002 G 342-10100 $222.00 $0.00 $831,518.29 PEL TIER PRESERVE DEBT SERVICE G 345-10100 $61.00 $5,550.00 $227,899.41 Hunters Crossing 11 G.O. Bond G 346-10100 $3,880.13 $0.00 $20,931.96 PARK CAPITAL PROJECT G 402-10100 $27500 $000 $312,343.46 MUNI STREET CAPITAL PROJECT G 412-10100 $0.00 $69,943.40 -$70,218.44 PEDESTRIAN TRAIL WAYS G 414-10100 $000 $0.00 $12,500.00 STORM WATER IMP PROJECTS G 415-10100 $4,397.78 $3,155.04 $279,937.89 PHEASANT MARSH G 438-10100 $41.00 $1,890.00 $153,482.64 THE SHORES G 440-10100 $0.00 $0.00 $21502 EAGLE PASS 2ND ADDN G 441-10100 $1600 $0.00 $58.817.16 PHEASANT MARSH I! G 442-10100 $1,694.50 $157.77 $107,93066 PHEASANT MARSH II! G 443-10100 $3.00 $1,66550 $9,49178 PEL TIER PRESERVE PROJECT G 445-10100 $69.00 $10191 $260,067.19 HUNTERS CROSSING PHASE I! G 446-10100 $162.00 $115,649.31 $606,034.49 CENTERVILLE TOWN OFFICE PARK G 447-10100 $0.00 $0.00 -$674.70 WATER FUND G 601-10100 $43,220.01 $36,310.36 $1,273,50562 SEWER FUND G 602-10100 $68,662.12 $27,112.60 $2,01866058 CABLE TV FUND G 614-10100 $4.00 $16248 $16444.38 Total Cash $227,703.18 $423,069.92 $7,778,160.37 Grand Total $227,703.18 $423,069.92 $7,778,160.37 tervi{{e 'Estabnsfied' 1857 UPDATE DISBURSEMENTS FROM MA Y 24 THROUGH MA Y 26, 2004 *Check Summary Register@ MAY 2004 Name Check Date Check Ami 10100 MAIN STREET BANK Paid Chk# 019233 NCPERS LIFE INSURANCE Paid Chk# 019234 QWEST Paid Chk# 019235 TRU GREEN - CHEM LAWN 512612004 5126/2004 5/26/2004 Total Checks $32.00 612004 T. BENDER & E PAUlSETH $271.60 429-4969 SERV THRU 6-15-Q4 $93.72 ROYAL MEADOWS PARK - LAWN CARE $397.32 PRELIMINARY OFFICIAL STATEMENT DATED MAY to, ZG04 NBwfSSuE IIANK-QuALJIIIED BooK-ENnlVONl,v MOODY's INVESl'ORS SOVlCl! RATING A2 With respect '" the 12,200,000 General ObUga/lon lmprove_ Bondr. _ 21J04B. doJed June J. 2IJ04, (the "-'J iJ /8 the t1pinkm of knn<dy '" Gtm>eIr, CIrarlered. J10nd CoonseJ. - on pre&<mt jiu/eral and MbutouoIa Iaw6. re~ ru/ing;I and declalons. lit the time of their _ and de/hIory '" the original [1III'C/rMsr, _ on the Bonds /8 exclwJeJ fiVm __ """"'"' fiw purpo.ses 0/ United State. """"'"' taJC and /8 excluded. '" the -- mC<1flt{1fllingbothgrouand_lenet_fiw_o/StoIeofMbutouola_ tac(other thtmMmnnotafr_ tttxes-.d by - and imposed on COIpOr(1IIotrs andj/nmrcJoJ instihdJons). _ on the Bonds is not on It8m oftac~./Or _ of the aUemotive - talC impoMd on lndIviduoh and COIpOr(1IIotrs; however, 11tt.- on the Bonds is _ inlotJCCQUtI/fiw the pu1]JO<< of detenntnlng 0J/jusJedcun-ent etIt'IIItIgIsjor purpo.ses of COItf{fUIIng the jiu/eral altmrative minimum ttlX impoMd on COIpOr(1IIotrs. No opinion wt/J be __ by J10nd Counsel...gording other.",., or jiu/eral taJC.~anaed by lite 1'8&e/ptor_ of-on the _orQt'/sJng _ respect '" ownenhJp ofllte Bonds. &e "Ta< Ilxemption" herem./Or addttioIIoJ I1tfimnat/on. CITY OF CENTERVlLLE, MINNESOTA $2,200,000 General Obligatiolllmprovement Bonds, Series 2004B Dated Date: Juoe t, 2004 Interest Due: Eaeh February 1 aod August 1 Commeoeing February t, 2005 &wmt !JgJg MtllUritv rkki Price Amount lYJK Mmuritv Yield !J:ig, $140,000 02/01113 150,000 02101114 155,000 02101115 160,000 02101116 170,000 02101117 175,000 02101/18 185,000 02101/19 195,000 02/01120 $110,000 120,000 120,000 125,000 130,000 130,000 135,000 02101106 02101/07 02/01108 02/01/09 02/01110 02101111 02/01112 The Bonds of 1bis issue maturing on February t, 2012 and thereafter are subject to redemption, in whole or in part, on February 1, 1011, or any date thereafter, at a price of par plus accmed interest The Bonds are being issued pursuant to Minnesota StBtuIes,Chapters 429 and 475, as amended. Proceeds will be used to provide mcmey to finance public infrastructure improvemeots related to the City's 2004 Street and Utility Improvement Project See Authority and Purpose herein fur additional infonnatioo. Bonds will be registered io the name of Cede & Co., as nominee of The Depository Trust Company, New Yorl<, New York. Individual purchases will be made in book-entry form only, in the priocipal amount oU5,OOO or any whole multiple thereof. Purchasers will not receive physical delivery of Bonds. See "Book-Entry System" in Description o/Bonds herein for additional infunnatioo. Paying Agent/Regis1rar will be U.8. Bank. National Association, St. Paul, Minnesota. Proposals: Wednesday May 26, 200411:00 AM Central Time Award: Wednesday May 26,2004 6:30 PM, Central Time Proposals may contain a maturity schedule providing fur any combinatioo of seriaI or term bonds, All term bonds shall be subject 10 mandatory sinIdng fund redemption and must conform to the maturity schedule set forth above at a price of par plus accrued interest. Proposals must be fur not less than $2,161,500 and accmed interest 00 the total principal amount of the Bonds, and must be accompanied by a certified or cashier's check or a Financial Snrety Bond in the amount of $44,000, payable to the order of the District. Award of the Bonds will on the basis ofTroe Interest Cost (TIC). ~ AAlvisorlO lbe Issuer: NORTHLAND.SECURITIES 45 Soutb .,.. Street Suite 2500 Minneapolis, MN 55402 800-851.2920 TABLE OF CONTENTS SwnmaryofOffering................................................................................................................................ Principal City Officials ............................................................................................................................. Official Terms of Bond Sale ..................................................................................................................... Authority and Purpose .............................................................................................................................. Security and Estimated Sout"Ce and Uses of Funds................................................................................... Description of Bonds ................................................................................................................................ Continuing Disclosure Certificate ............................................................................................................ Official Statement ................................. .................................................................................................... Future Financing ....................................................................................................................................... Bond Rating .............................................................................................................................................. Litigation................................................................................................................................................... Certification .............................................................................................................................................. Legality ..................................................................................................................................................... Financial Advisor......................................................... ............................................................................. Tax Exemption................................................................................. ......................................................... City of Centervi1le (General Information) ................................................................................................ Minnesota Valuations; Property Tax Classifications................................................................................ City of Cente!"ViUe (Economic and Financial Information) ................................ ...................................... Swnmary of Debt and Debt Statislics....................................................................................................... Proposal Fonn...................... ............. ..... ....... ............................................................................................ Appendix A - Proposed Form of Legal Opinion Appendix B - Proposed Form of Continuing Disclosure Certificate Appendix C - City's Financial Statement Pae:e 2 3 4-7 8 8 9 10 II II II II II II II 12 13 - 17 18-20 21-27 28 29 SUMMARY OF OFFERING $2,200,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2004B (Book-Entry Only) AMOUNT - $2,200,000. ISSUER - City ofCenterville, Minnesota (The "City"). SALE DATE- OPENlNG- Wednesday, May 26, 2004. AWARD- 11:00 A.M. Central Time, sealed proposals submitted or faxed to Northland Securities, Inc., 45 South Seventh Street, Suite 2500, Minneapolis, Minnesota 55402, telephone: (612) 851-5900 or (800) 851-2920 or electronically on PARIT\"1'M 6:30 P.M., Central Time, at the Centerville City Hall, 1880 Main Street, Centerville, M'mnesota 55386-0036. TYPE OF ISSUE- General Obligation Improvement Bonds, Series 20048 (the "Bonds"). See Authority and Purpose as well as Security and Estimaled Source and Uses of Funds herein for additional infonnatiolL SECURITY & PURPOSE - The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475, as amended. Proceeds will be used to provide money to finance public infrastructure improvements related to the City's 2004 Street and Utility Improvement Project Bonds are payable primarily from special assessments against all benefited property. The full faith and credit of the City is pledged to their payment and the City has validly obligated itself to levy additional ad valorem taxes in the event of any deficiency in the Debt Service Account established for this issue. See Authority and Purpose as well as Security and Estimated SQurce and Uses of Funds herein for additional information. DATE OF ISSUE- June 1,2004. INTEREST PAID- February 1, 2005, and semiannually thereafter on August I and February I to registered owners appearing of record in the bond register as of the close of business on the fifteenth (15th) day (whether or not a business day) of the irmnediately preceding month. DENOMINATIONS - MATURITY $5,000. 02/01/06 02/01107 02/0 lI08 $110,000 120,000 120,000 02101/09 02101110 02l0ll11 $125,000 130,000 130,000 02101/12 02101/13 02101114 $135,000 l40,ooo 150,000 02/01/15 02/01116 02/01/17 $155,000 160,000 170,000 02/01/18 02/OlI19 02101120 $175,000 185,000 195,000 REDEMPTION FEATURE- The City may eleeton February I, 2011.8!1d on any day thereafter, to prepay Bonds. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. BOOK-ENTRY - Bonds will be issued as fully registered and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York, to which principal and interest payments will be made. Individual purchases will be made in book~ntry form only, in the principal amount of $5,000 or any whole multiple thereof. Purchasers will not receive physical delivery of Bonds. PAYING AGENTIREGISTRAR - U.S. Bank National Association, St. Paul, Minnesota.. l\.ffiTHOD OF SALE - Sealed or electronic proposals. Good faith deposit in the amount 0[$44,000 at a price of not less than $2,161,500 and accrued interest. See Official Terms of Bond Sale herein for additional information. TAX DESIGNATIONS - NOT Private Activitv Bonds - These Bonds are not "private activity bonds" as defined in Sectionl41 of tile Internal Revenue Code ofl986, as amended (the Code). Oualified Tax-Exemnt Oblie:ations - The City will designate these Bonds "qualified tax-exempt obligations" for purposes of Section 265(bX3) of the Code. LEGAL OPINION - Kennedy & Graven, Chartered, Minneapolis, Minnesota (the "Bond Counsel"). RATING - The City was assigned a rating of"A2" by Moody's Investors Service. ESTIMATED CLOSING. PRIMARY CONTACTS- Within forty days after award, subject to approving Legal Opinion. Kim Moore-Sykes, City Administrator, City ofCenterville, (651) 429~3232. Teresa Bender, City Clerk, City ofCenterville, (651) 429.3232. George D. Eilertson, Senior Vice President.Partner, Northland Securities, Inc., (612) 851-5900 or (800) 851-2920. -2- Elected Oty OfficlaIs Name Terry Sweeney Mary Capra Jeff Paar Tom Lee Linda Broussard Vickers Appointed Officials Kim Moore-Sykes Teresa Bender CITY OF CENTERVll..LE PRINCIPAL CITY OFFICIALS Position Mayor Council Member Council Member Council Member Council Member Administrator Clerk Bonestroo Rosene Anderlik & Assoc. Barna, Guzy & Steffen, Ltd. - James D. Hoeft Engineer Bond Counsel Bond Consultaut Attorney Kennedy & Graven, Chartered MInneapolis, MInnesota Northland Securities. Inc. MInneapolis, Minnesota -3- City Council Term Exoires 01/03/05 01/03/05 o 1!O3!O7 01/03/05 01/03/05 OFFICIAL TERMS OFBOND SALE $2,200,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2004B CITY OF CENTERVILLE, ANOKA COUNTY, MINNESOTA (Book Entry Only) NOTICE IS HEREBY GIVEN that these bonds will be offered for sale according to the following terms: TIME AND PLACE: Proposals will be opened by the City Clerk, or designee, on Wednesday, May 26, 2004, at 11:00 A.M., Central Time, at the offices of Northland, 45 South Seventh Street, Suite 2500, Minneapolis, Minnesota 55402. Consideration of the proposals for award of the sale will be by the City Council at its meeting in the Centerville City Hall beginning at 6:30 P.M., on the same day. SUBMISSION OF PROPOSALS: Sealed bids may be: a) subruitted to the office ofNortWand Securities, b) faxed to NortWand Securities at (612) 851-5917, c) for proposals subruitted prior to the sale, the final price and coupon rates may be subruitted to NortWand Securities by telephone at (612) 851-5900, or d) bids may be subruitted electrouically. Notice is hereby given that electronic proposals will be received via PARITY, in the manner described below, until II :00 A.M., local time on May 26, 2004. Bids may be submitted electronically via PARITY pursuant to this Notice until II :00 A.M., local time, but no bid will be received after the time for receiving bids specified above. To the extent any instructions or directions set forth in PARITY conflict with this Notice, the terms of this Notice shall control. For further information about PARITY, potential bidders may contact NortWand Securities, Inc. or Dalcomp at 40 West 23'" Stree~ 51b floor, New York, NY 10010, telephone (212) 404-8102. Neither the City of Centerville nor NortWand Securities, Inc. assumes any liability if there is a malfunction of PARITY. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the proposal subruitted. BOOK ENTRY SYSTEM: The bonds will be issued by means of a book entry system with no physical distribution of bond certificates made to the public. The bonds will be issued in fully registered form and one bond certificate, representing the aggregate principal amount of the bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the bonds. Individual purchases of the bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the Issuer through U.S. Bank National Association, in St. Paul, Minnesota (the "Registrar") to OTC or its nominee as registered owner of the bonds. Transfer of principal and interest payments to participants of OTC will be the responsibility of orc; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The successful proposal maker, as a condition of delivery of the bonds, will -4 - owners. The successful proposal maker, as a condition of delivery of the bonds, will be required to deposit the bond certificates with DTC. The Issuer will pay reasonable and customary charges for the services of the Registrar. DATE OF ORIGINAL ISSUE OF BONDS: June 1,2004 PURPOSE: For the purpose of providing money to finance public infrastructure improvements related to the City's 2004 Street and Utility Improvement Project. INTEREST PAYMENTS: February I, 2005, and semiannually thereafter on August I and February I to registered owners of the bonds appearing of record in the bond register as of the close of business on the fifteenth day (whether or not a business day) ofthe immediately preceding month. MATURITIES February I in each of the years and amounts as follows: Year Amount Year Amount 2006 2007-2008 2009 2010-2011 2012 2013 2014 $110,000 120,000 125,000 130,000 135,000 140,000 150,000 2015 2016 2017 2018 2019 2020 $155,000 160,000 170,000 175,000 185,000 195,000 All dates are inclusive. Proposals for the bonds may contain a maturity schedule providing for any combination of serial bonds and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year conforms to the maturity schedule set forth above. REDEMPTION: The Bonds are subject to redemption and prepayment at the option of the Issuer on February I, 2011, and on any date thereafter at par. CUSIP NUMBERS: If the bonds qualifY for assigmnent of CUSIP numbers such numbers will be printed on the bonds, but neither the failure to print such numbers on any bond nor any error with respect thereto shall constitute cause for a failure or refusal by the Purchaser thereof to accept delivery of and pay for the bonds in accordance with terms of the purchase contract. The CUSIP Service Bureau charge for the assigmnent of CUSIP identification numbers shall be paid by the Purchaser. DELIVERY: Forty days after award subject to approving legal opinion of Kennedy & Graven, Chartered, of Minneapolis, Minnesota. Legal opinion will be paid by the Issuer and delivery will be anywhere in the continental United States without cost to the Purchaser at DTC. TYPE OF PROPOSAL: Sealed proposals of not less than $2,161,500 and accrued interest on the principal sum of $2,200,000 from date of original issue of the bonds to date of delivery must be filed with the undersigned prior to the time of sale. Proposals must be unconditional except as to legality. A certified -5- or cashier's check (the "Deposit") in the amount of $44,000, payable to the order of the Administrator of the Issuer, ora Financial Surety Bond complying with the provisions below, must accompany each proposal, to be forfeited as liquidated damages if proposal maker fails to comply with accepted proposal. Proposals for the bonds should be delivered to Northland and addressed to: Teresa Bender, Clerk Centerville City Hall 1880 Main Street Centerville, Minnesota 55386-0036 If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the Issuer. Such bond must be submitted to Northland, prior to the opening of the proposals. The Financial Surety Bond must identity each proposal maker whose Deposit is guaranteed by such Financial Surety Bond. If the bonds are awarded to a proposal maker using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Northland in the form of a certified or cashier's check or wire transfer as instructed by Northland not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the Issuer to satisty the Deposit requirement. The Issuer will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the Issuer. No proposal can be withdrawn after the time set for receiving proposals unless the meeting of the Issuer scheduled for award of the bonds is adjourned, recessed, or continued to another date without award of the bonds having been made. AWARD: The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The Issuer's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. The Issuer will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (H) reject all proposals without cause, and (Hi) reject any proposal which the Issuer determines to have failed to comply with the terms herein. RATES: All rates must be in integral multiples of 1/20th or 1/8th of 1%. No limitation is placed upon the number of rates which may be used. All bonds of the same maturity must bear a single uniform rate from date of issue to maturity. INFORMATION FROM PURCHASER: The successful purchaser will be required to provide, in a timely manner, certain information relating to the initial offering price of the bonds necessary to compute the yield on the bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended. .6 - OFFICIAL STATEMENT The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded copies of the Official Statement and the addendum or addenda. CONTINUING DISCLOSURE CERTIFICATE The Issuer will covenant in the resolution awarding the sale of the bonds and in sale of the bonds and in a Continuing Disclosure Certificate to provide, or cause to be provided, annual fmancial information, including audited financial statements of the Issuer, and notices of certain material events, as required by SEC Rule 15c2-12. BANKQUALIFIED TAX-EXEMPT OBLIGATIONS: The Issuer will designate the bonds as qualified tax exempt obligations for purposes of Section 265(b )(3) of the Internal Revenue Code of 1986, as amended. BOND INSURANCE AT PURCHASER'S OPTION: If the Bauds qualify for issuance of any policy of municipal bond insurance or commitment therefore at the option of the Underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the 'Bonds. Any increase costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the Purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the Purchaser. Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. The Issuer reserves the right to reject any and all proposals, to waive informalities and to adjourn the sale. Dated: May 12, 2004. BY ORDER OF THE CITY COUNCIL Is! Kim Moore-Svkes City Administrator Additional information may be obtained from: Northland Securities, Inc. 45 South Seventh Street Suite 2500 Minneapolis, Minnesota 55402 Telephone No.: 612- 851-5900 -7- AUTHORITY AND PURPOSE Authority The Bonds are being issued pW"Sll8llt to Minnesota Statutes, Chapters 429 and 475, as amended. Purpose Proceeds will be used to provide money to finance public infrastructure improvements related to the City's 2004 Street and Utility Improvement Project. SECURITY AND ESTIMATED SOURCE AND USES OF FUNDS Security At closing Bond Counsel will render an opinion that the Bonds are valid and binding general obligations of the City of Centerville. (See Appendix A - Legal Opinion). Bonds will be payable primarily from special assessments against all benefitted property. The full faith and credit of the City is pledged to their payment and the City has validly obligated itself to levy additional ad valorem taxes in the event of any deficiency in the Debt Service Account established for this issue. Taxes will be levied upon all of the taxable property within the City and without limitation of amount. Estimated Source and Uses of Fuuds I. Source of Funds General Obligation Improvement Bonds, Series 2004B $2,200,000 II. Uses of Funds Esrim.tlld Costs to be Financed: Street and Utility Improvements Cost of Issuance and Discount Capita\ized Interest (10 mouths) $62,925 55.512 $2,083,911 118.437 $2,202,348 Total Costs to be Financed: Less: Estimated Construction Fund Income Less: Rounding ( 2,932) 584 Total $2.200 000 -s- I DESCRIPTION OF BONDS Details of Certain Terms The Bonds will be dated, as originally issued, as of June I, 2004, and will be issued as fully registered Bonds in the denominations of $5,000 or any integral multiple thereof. Interest on the Bonds will be payable semiannually on each FebIll81y 1 and August 1, commencing February I, 2005. The Bonds when issued, will be registered in the name of Cede & Co. (the "Registered Holdet''), as nominee of The Depository Trust Company, New Yorl<, New York ("DTC''), the initial custodian for the Bonds, to which principal and interest payments on the Bonds will be made so long as Cede & Co. is the Registered Holder of the Bonds. See "Book-Entry System" in Description of Bonds herein for additional information. So long as the Book-Entry Only System is used, individual purchases of the Bonds will be made in book-ilntry form only, in the principal amount of $5,000 or any integral multiple thereof ("Authorized Denominations"). Individual purchasers ("Beneficial Owners") of the Bonds will not receive physical delivery of bond certificates, and registration, exchange, transfer, tender and redemption of the Prior Bonds with respect to Beneficial Owners shall be governed by the Book-Entry Only System. So long as the Book-Entry Only System is used, payments from Cede & Co., as the Record Holder, to the Beneficial Owners shall be governed by the Book-Entry Only System. If the Book-Entry Only System is discontinued, the principal of and premium, if any, on the Bonds will be payable upon presentation and surrender at the raying Agent and Bond Registrar or a dnly appointed successor. Interest on the Bonds will be paid by check or draft mailed by the Bond Registrar to the registered holders thereof as such appear on the registration books maintained by the Bond Registrar as of the close of business on the fifteenth day (whether or not a business day) of the calendar month preceding each interest payment date (the "Record Date''). Registration, Transfer and EICbange So long as the Book-Entry Only System is used, payments from Cede & Co., as the Record Holder, to the Beneficial Owners shall be governed by the Book-Entry Only System. If the Book-Entry Only System is discontinued, the Bonds may be transferred upon surrender of the Bonds at the principal office of the Bond Registrar, duly endorsed for transfer or accompanied by sri assignment duly executed by the registered owner or his or her attorney duly authorized in writing. The Bonds, upon surrender thereof at the principal office of the Bond Registrar may also be exchanged for other Bonds of the same series, of any authorized denominations having the same form, terms, interest rates and maturities as the Bonds being exchanged. The Bond Registrar will require the payment by the Bondholder requesting such exchange or transfer of any tax or governmental charge required to be paid with respect to such exchange or transfer. The Bond Registrar is not required to (i) issue, transfer or exchange any Bond during a period beginning at the opening of business fifteen days before any selection of Bonds of a particular stated maturity for redemption in accordance with the provisions of the General Resolution and Series Resolution and ending on the day of the first mailing of the relevant notice of redemption or (ii) to transfer any Bond or portion thereof selected for redemption. Optional Redemption Bonds having stated matorities on or after February 1,2012 are subject to optional redemption, in whole or in part, on FebIll81y 1, 2011, and on any date thereafter, in inverse order of stated maturities and by lot within a stated maturity, at a price of par, plus accrued interest Book-Entry System The Depository Trust Company ("DTC"), New Y orl<, New Y orl<, will act as securities depository for the Bonds. Upon issuance of the Bonds, one fully registered Bond will be registered in the name of Cede & Co., as nominee for DTC, fur each maturity of the Bonds as set forth on the cover page hereof; each in the aggregate principal amount of such maturity. So long as Cede & Co. is the registered owner of the Bonds, references herein to the Owners of the Bonds shall mean Cede & Co. and shall not mean the Beneficial Owners of the Bonds. DTC is a limited purpose trust company organized under the laws of the State of New Y orl<, a member of the Federal Reserve System, a "clearing cOlporation" within the meaning of the New York Uniform Commercial -9- Code and a "clearing agency" registered pursuant to the provisions of Section 17A of the Secwities Exchange Act of 1934, as amended. DTC was created to hold secwities of its participants (the "DTC Participants'') and to facilitate the clearance and settlement of securities transactions among DTC Participants in such secwities through electronic book-entty changes in accounts of the DTC Participants, thereby eliminating the need for physical movement of secwities Bonds. DTC Participants include secwities brokers and dealers, banks, trust companies, clearing cotporations, and certain other organizations, some of whom (andlor their representatives) own DTC. Access to the DTC system is also available to others such as banks, brokers, dealers, and trnst companies that clear through or maintain a custodial relationship with DTC Participants, either directly or indirectly (the "Indirect Participants"). The interest of each of the Beneficial Owners of the Bonds will be recorded through the records of a DTe Participant or Indirect Participant Each DTC Participant will receive a credit balance on the records of DTC. Individual purchases will be made in the denomination of $5,000 or any wbole multiple thereof. Beneficial owners of Bonds will receive a written confirmation of their purchases providing details of the Bonds acquired. Beneficial owners of Bonds will not receive Bonds representing their ownership interest in the Bonds, except as specifically provided below. Transfers of beneficial ownership interest in the Bonds will be accomplished by book entries made by DTC and, in turn, by the DTC Participants who act on behalf of the Indirect Participants and the Beneficial Owners of Bonds. For every transfer and exchange of beneficial ownership of Bonds, the beneficial owner may be charged a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in relation thereto. The City will make payments of principal and interest on the Bonds to DTC or its nominee, Cede & Co., as registered owner of the Bonds. Upon receipt of moneys, DTC's current practice is to immediately credit the accounts of the DTC Participants in accordance with their respective holdings shown on the records of DTC. Payments by DTC Participants and Indirect Participants to Beneficial Owners will be governed by standing instructions and customary practices such as those which are now the case for municipal secwities held in bearer form or registered in "street name" for the accounts of customers and will be the responsibility of such DTC Participants or Indirect Participants and not the responsibility of DTC or the Issuer, subject to any statutory and regulatory requirements as may be in effect from time to time. CONTINUING DISCLOSURE CERTIFICATE In order to assist the Underwriter{s) in complying with SEC Rule 15c2-12 (the "Rule"), pursuant to the Award Resolution and a Continuing Disclosure Certificste (the "Certificate") to be executed on behalf of the City on or before Bond Closing, the City has and will covenant for the benefit of holders of the Bonds to provide certain financial information and operating dsta relating to the City to certain information repositories annually, and to provide notices of the occurrence of certain events enumerated in the Rule to certain information repositories or the Municipal Secwities Rulemaldng Board and to any state information depository. The specific natore of the Certificste, as well as the information to be contained in the annual report or the notices of material events are set forth in the Continuing Disclosure Certificate in substantially the form attached hereto as Appendix B. The City has never failed to comply in all material respects with any previous undertakings under the Rule to provide annual reports or notices of materiaI events. A failure by the City to comply with the Certificate will not constitute an event of default on the Bonds (although holders will have an enforceable right to specific performance). Nevertheless, such a failure must be reported in accordance with the Ru OFFICIAL STATEMENT , , No Final Official Statement will be prepared. The Issuer will provide the successful Underwriter with an addendum that together with this Preliminary Official Statement will be deemed the Final Official Statement by the Issuer. FUTURE FINANCING The City does not anticipate the need to finance any capital improvements with the issuance of general obligation Bonds within the next two months. BOND RATING The City was assigned a rating of"A2" by Moody's Investors Service. LITIGATION As of April 27, 2004, the City Attorney, James D. Hoeft, Barna, Guzy & Steffen, Ltd., indicated that there is no pending or threatened litigation which would otherwise jeopardize the creditworthiness of the City. CERTIFICATION The City will furnish a statement to the effect that this Official Statement to the best of their knowledge and belief, as of the date of sale and the date of delivery, is true and correct in all material respects, and does not contain any untrue statements of a material fact or omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. LEGALITY Legal matters incident to the authorization and issuance of the Bonds are subject to the approving opinion of Bond Counsel, as to validity and tax exemption. A copy of such opinion will be available at the time of the delivery of the Bonds. See Appendix A - Legal Opinion. Bond Counsel has not participated in the preparation of the Official Statement and is not passing upon its accuracy, completeness or sufficiency. Bond Counsel has not examined, nor attempted to examine, or verifY, any of the financial or statistical statements or data contained in this Official Statement, and will express no opinion with respect thereto. FINANCIAL ADVISOR The Issuer has retained Northland Securities, Inc. as financial advisor (the "Financial Advisor") in connection with the issuance of the Bonds. In preparing the Official Statement, the Financial Advisor has relied upon governmental officials, and other sources that have access to relevant data to provide accurate information for the Official Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to independently verifY the accuracy of such information. The Financial Advisor is not a public accounting firm and has not been engaged by the Issuer to compile, review, examine or audit any information in the Official Statement in accordance with accounting standards. Pursuant to Rule G-23 of the Municipal Securities Rulemaking Board, the Issuer reserves the right to invite the Financial Advisor to participate in the underwriting of the Bonds. If any entity or company associated with the Financial Advisor submits a competitive bid, it shall fax said bid to the Issuer (Fax No. 651-429-8629) at least fifteen (15) minutes prior to the deadline otherwise established for the receipt of such a bid. -11- TAX EXEMPTION In the opinion of Bond Counsel, under federal and Minnesota laws, regulations, rulings and decisions in effect on the date of issuance of the Bonds, interest on the Bonds is not includable in gross income for federal income tax purposes or in taxable net income of individuals, estates and trusts for Minnesota income tax purposes. Interest on the Bonds is includable in taxable income of corporations and financial institutions for purposes of the Minnesota franchise tax. Certain provisions of the Internal Revenue Code of 1986, as amended (the "Code"), however, impose continuing requirements that must be met after the issuance of the Bonds in order for interest thereon to be and remain not includable in federal gross income and in Minnesota taxable net income. Noncompliance with such requirements by the County may cause the interest on the Bonds to be includable in gross income for purposes of federal income taxation and in taxable net income for purposes of Minnesota income taxation, retroactive to the date of issuance of the Bonds, irrespective in some cases of the date on which such noncompliance is ascertained. No provision has been made for redemption of or for an increase in the interest rate on the Bonds in the event that. interest on the Bonds becomes includahle in federal gross income or Minnesota taxable income. Interest on the Bonds is not an item of tax preference includable in altemative minimum taxable income for purposes of the federal alternative minimum tax appIicahle to all taxpayers or the Minnesota alternative minimum tax applicahle to individuals, estates and trusts, but is includable in adjusted current earnings in determining the federal alternative minimum taxable income of corporations for purposes of the federal alternative minimum tax. Interest on the Bonds may be includahle in the income of a foreign corporation for purposes of the branch profits tax imposed by Section 884 of the Code and is includahle in the net investment income of foreign insurance companies for purposes of Section 842(b) of the Code. In the case of an insurance company subject to the tax imposed by Section 831 of the Code, the amount which otherwise would be taken into account as losses incurred under Section 832(b)(5) of the Code must be reduced by an amount equal to fifteen percent of the interest on the Bonds that is received or accrued during the taxable year. Section 86 of the Code requires recipients of certain Social Security and railroad retirement benefits to take into account, in determining the taxability of such benefits, receipts or accruals of interest on the Bonds. Passive Investment Income of S Corporations Passive inveslment income, including interest on the Bonds, may be subject to federal income taxation under Section 1375 of the Code for a Subchapter S corporation that has Subchapter C earnings and profits at the close of the taxable year if greater than twenty-five percent of the gross receipts of such Subchapter S corporation is passive inveslment income. Section 265 of the Code denies a deduction for interest on indebtedness incurred or continued to purchase or carry the Bonds or, in the case of a financial institution, that portion of the holder's interest expense aUocated to interest on the Bonds, except with respect to certain financial institutions (within the meaning of Section 265(b) of the Code). The above is not a comprehensive list of aU federal tax consequences which may arise from the receipt of interest on the Bonds. The receipt of interest on the Bonds may otherwise affect the federal or State of Minnesota income tax liability of the recipient based on the particular taxes to which the recipient is subject and the particular tax status of uther items or deductions. Bond Counsel expresses no opinion regarding any such consequences. All prospective purchasers of the Bonds are advised to consult their own tax advisors as to the tax consequences of; or tax considerations for, purchasing or holding the Bonds. Qualified Tax-Exempt Obligations The Issuer will designate the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations. "Qualified tax-exempt obligations" are treated as acquired by a financial institution before August 8, 1986. Interest aUocable to such obligations remains subject to the 20% disallowance under prior law. -12- CIlY OF CENTERVILLE GENERAL INFORMATION Access and Tnnsportation Centerville, situated in Anoka County, is located approximately 18 miles north of St Paul and is part of the Seven County Metropolitan Area. Access is provided via Interstate Highway 35E, County Road 14, state Highway 65 and US Highway 61. Interstate Highways 35W and 694 are approximately 6 and 9 miles west and south of the City, respectively. Principal truck lines serving the City include Eagle Trucking, and Terminal Trucking. Air transportation by major airlines are available at the Minneapolis-St Paul International Airport, less than an hour drive from Centerville, and at the Anoka County-Blaine Airport, located approximately 10 miles east of Centerville. The Blaine Airport has a lighted paved 4,855-foot runway that can accommodate charter, freight, and small jets. There are approximately 25 miles of paved streets within the City limits. Tax Base For taxes collectable in 2004, the tax breakdown is 82.47% residential homestead (non-agriculture), .59% agricultural, 11.99% commercial and industrial, 3.50% non-homestead residential, and 1.45% personal property. Area 1,559 Acres (2.44 Square Miles) Population 1980 Census 1990 Census 1,601 2,305 2000 Census 2002 Estimate 3,202 3,430 Municipal Euterprise Services The Water Utility SyStem has approximately 1,246 municipal connections served by a 100,000 gallon elevated water storage facility along with two pump stations that have the capacity to pump 1,650 gallons per minute or 2,376,000 gallons per day. Average demand is 60,391 gallons per day while peak demand reaches 240,000 gallons per day. Total water hardness is 190 parts per million. The 2003 audited operating revenues were $195,229 with the average charge per year per household and commercial at approximately $157. The industrial water base rate is $15.50 plus an additional $1.50 per thousand gallons. The Sewer Utility Svstem has approximately 1,246 municipal connections. All sewage services are operated through the Metropolitan Waste Control Commission. The 2003 audited operating revenues were $233,299 with the average charge per year per househuld and commercial at approximately $187. The sewer usage base charge is $13.00 per SAC unit per month. Other Municipal Services Fire and Rescue Deoartment Fire protection is provided through the Centeunial Fire District hy a 55-member volunteer fire and rescue department The District comprises the Cities of Centerville, Lexington, and Lino Lakes. The Cities pay an annual membership fee to the District based on their percentage of the annual depreciation on the apparatus and equipment values. The District houses equipment in Centerville's old fire station building and pays for a share of the utilities. -13- Equipment consists of two 1,250 gallon per minute pumpers, one 1,500 gallon per minute pumper with a 65 foot ladder truck, two 1,800 gallon tankers, three grass rig uuits, three emergency/rescue vehicles, one utility vehicle as well as other ruiscellaneous fire fighting and rescue equipment. Police Department. The City has a police department operated through a joint-powers agreement with the commuuities of Centerville, Circle Pines and Lexington. All dispatching is conducted through the Anoka County Sheriff's Department. Parl< and Reereational Facilities. The City currently operates several muuicipal parl<s encompassing approximately 35 acres. Facilities inclnde baseballfsoftball fields, picnic shelters, soccer/football fields, hockey/skating rinks, a skate park, and general playground equipment. The combination of these parl<s and recreational facilities comprise a complete parl< and recreation system throughout the City. City Government Centerville, organized in 1857, is a Minnesota Statutory City with an 'Optional Plan A' form of government. It has a mayor elected at large for a two-year term and four council members also elected at large for four-year terms. The professional staff is appointed and consists of an administrator, finance director, clerk, attorney, and engineer. Comprebensive Plan The City has a comprehensive plan, which serves as a guidance tool for phases of development within the commuuity as well as guidelines for providing essential services. Employee Pension Programs The City employs nine full-time people. The pension plan covers all nine employees as of December 31, 2003. The City participates in contributory pension plans through the Public Employees Retirement Association (liERA) under Minnesota Statutes, Chapters, 353 and 356, which covers all full-time and certain part-time employees. PERA ~rlmin;<ters the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF), which are cost sharing, multiple-employer retirement plans. This plan is state administered and is coordinated with the Federal Social Security Retirement Plan (FICA) and employees are vested after three years of credited service. State statute requires the City to fund current service pension cost as it accrues. Prior service cost is being amortized over a period of 40 years and is being funded by payment determined as a percentage of gross wages paid by all employers participating in the State Association. City contributions to PERF for the past nine years have been as follows; Year Amount Year Amount 2003 $23,440 1998 $13,026 2002 20,932 1997 8,879 2001 15,963 1996 6,851 2000 15,736 1995 5,984 1999 14,953 -14- Labor Force Data Comparative average labor force and unemployment rate figures for 2004 (through March) and year-end 2003 from the Minnesota WodForce Center are listed below. Figures are not seasonally adjusted and numbers of people are estimated by place of residence. Anoka County Minnesota Civilian Labor Force 188,775 2,915,561 2004 Unemployment Rate 5.0"10 5.4 Civilian Labor Force 189,407 2,923,083 2003 Unemployment Rate 5.0% 5.0 Residential Development There are approximately 1,222 single-family homes and one multifamily unit located within the City. The City reports there have been 36 single-family homes constructed within the past twelve months. The status of residential subdivisions constructed or planned within the past three years is as follows: Total Number of Remaining Subdivision Number of LotslUnits LotslUnits Name LotslUnits Comoleted Available Eagle Pass-2'"' Phase 20 20 0 Hunter's Crossing 38 38 0 Peltier Preserve 19 3 16 Pheasant Marsh-I'" Phase 22 22 0 Pheasant Marsh-2'"' Phase 27 27 0 The Shores 10 10 0 Industrial Park(s) There is an approximate 25-acre industrial patk located within the City with a capacity of nine enterprises. Currently there are nine enterprises occupying the paIk: Goetz Landscaping & irrigation, Noble Welding, Northern Forest Products, Comfort Plus Heating & Cooling, Arcade Asphalt, Arcade Concrete, First Class Concrete, Chicilo Homes, ADL, and KCI Inc. CommerciallIndustrial Development Building construction and commercial{mdustrial completed within the past three years have been as follows: Description of Construction Name ADLl Arcade Concrete! Centerville Elementary SchooF Chici/o Homes!. 2 First Class Concrete! KCI Inc. I. 2 Mainstreet Bank Rosenthal Royal Excavating Uptown Center2 Product/Service Antomotive Repair Concrete Service Public Education Home Builder Concrete Service Office Warehouse Banking and Financial Services Retail Building, leased Excavation Service Strip Mall Addition Block Building Addition Wood Frame Office Addition $500,000 Block Building Addition Addition Addition Brick Building I L<>caIod within 1he approxUnate 25-oore industrial pad<. 2 Building coostruction and co=ia1fmdustrial development completed within 1he past twelve months. -15- Building Permits Building permits issued for the past eight yems have been as follows: Commercial! Industrial Residential Total Total Number Number Number Permit Year of Permits of Permits of Permits Valuation 2003 2 189 191 10,418,300 2002 I 178 179 12,277,691 2001 16 199 215 12,287,769 2000 0 117 117 5,428,864 1999 2 228 230 13,794,300 1998 I 242 243 16,451,000 1997 I 161 162 11,525,085 1996 0 116 Il6 4,846,378 FiDanclallDslitulioDS Banking and financial services are provided by Mainstreet Bank (branch of Forest Lake). Reported deposits are currently not available for the Centerville branch. All deposit/asset information was obtained at the Federal Reserve's National Information Center (NIC) website at www.ffiec.govlnic. Education Independent School District No. 12, Centennial, operates five e1ementazy schools, grades kindergarten through five, one middle school, grades six through eight and one senior high school, grades nine through twelve. Combined enrollment at the seven schools for the 200312004 school year is approximately 6,436. Directly located within the City is an elementary school, grades kindergarten through five, with an estimated enrollment of 832. Major Employers There are approximately seven retail and/or commercial enterprises in the downtown area employing an estimated 70 people. Following are the ten largest employers within the City: Number of Emvlovees CommerciallIndustrial ProductlService Terminal Trucking Waterworks Beach Club Goetz Landscaping & Irrigation! Kelly's Comer Noble Welding! R&R Leasing Why USA Northern Forest Products! Apple Academy City of Centerville2 Trucking Services . Night Club Landscaping Services Bar/Restaurant Welding Repair Leasing Services Real Estate Services Lumber & Building Materials Child Care Services City Government 79 25 24 23 20 20 18 17 13 9 1 Located _ the approximate 25-acre iuduslrial pad<. 2 Constitutes Dine full-time employees. -16- Largest Taxpayers Following are the ten largest taxpayers within the City as reported by Anoka County: Name Northern Forest Products Individual Xcel Energy First Class Leasing Coatney Family Properties Drilling & Tirokomos Centerville Properties Rocket Properties Magill Properties Minnegasco The County Bank Classification Commercial Commercial Utility Commercial Commercial Commercial Commercial Commercial Commercial Utility Bank I Before tax ineremeot and fiseaI disparities a<ljUSlments. 2003/2004 Estimated Market Value SI,950,800 1,841,900 I,Oll,loo 958,600 931,200 831,500 824,400 670,500 617,100 546,300 571,600 - [7- 2003/2004 Net T<n: Caoacitv S38,266 26,282 19,472 18,422 17,874 15,880 15,378 12,660 ll,592 10,926 10,682 Percent of Real Property to Net T<n: Capacity ($2.550.434)/ 1.50% 1.03 .76 .72 .70 .62 .60 .50 .45 .43 .42 MINNESOTA VALUATIONS: PROPERTY TAX CLASSIFICATIONS Market Value According to Minnesota Statutes, Chapter 273, all real property subject to taxatioo is to be appraised at maximum intervals of four years. All real property becoming taxable in any year is listed at its estimated market value on January 2 of that year. The estimated market value is the County Assessor's appraisal of the worth of the property. Indicated Market Value The Minnesota Department of Revenue conducts the Real Estate Sales Assessment Ratio Stody to llCC<lmplisb equalization of property valuation in the State of Minnesota and to determine the probable selling price of a property. The study is a tbree-year average of sale prices as related to the latest assessor's estimated market value. The indicated market value is determined by dividing the estimated market value by the Sales Assessment Ratio for the city as determined by the Department of Revenue. Tax Cycle Minnesota ]ocaI government ad valorem property taxes are extended and collected by the various counties within the state. The process begins in the fall of every year with the certification, to the county auditor, of all local taxing districts' property tax levies. Local tax rates are calculated by dividing each taxing district's levy by its net tax capacity. One percentage point oflocal tax rate represents one dollar of tax per $]00 net tax capacity. A list of taxes due is then prepared by the county auditor and tomed over to the county treasurer on or before the first Monday in January. The county treasurer is responsible for collecting all property taxes within the connty. Real estate tax statements are to be mailed out no later than January 3] and personal property tax statements no later than February ]5. The due dates for payment of real property taxes are one-half on or before May 15 and one-half on or before October 15. Personal property taxes become due one-half on or before February 28 and one-half on or before June 30. Following each settlement (March 5, June 5, and November 5 of each year), the county treasurer must redistribute property tax revenues to the local taxing districts in proportion to their tax capacity ratios. Delinquent property taxes are penalized at various rates depending on the type of property and the length of delinquency. Tax Credits Prior to ]990, taxes on homestead residential and agricultural property were reduced by a direct subsidy to the taxpayer. Beginning in ]990, the homestead credit has been eliminated. The state subsidy is now llCC<lmplished through lower class rates to homesteaded classifications of property and increased state aids paid directly to local taxing districts. This new system is intended to have generally the same impact as the former homestead credit system. Tax Levies for General Obligation Bonds (Minnesota Statutes, Section 475.61) The governing body of any municipality issuing general obligations shall, prior to delivery of the obligations, levy by resolution a direct general ad valorem tax upon all taxable property in the municipality to be spread upon the tax rolls for each year of the term of the obligations. The tax levies for all years shall be specified and such that if collected in full they, together with estimated collections of special assessments and other revenues pledged for the payment of said obligations, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the obligations. Such resolution shall irrevocably appropriate the taxes so levied and any special assessments or other revenues so pledged to the municipality's debt service fund or a special debt service fund or llCC<lunt created for the payment of one or more issues of obligations. -18- The governing body may, at its discretion, at any time after the obligation have been authorized, adopt a resolution levying only a portion of such taxes, to be filed, assessed, extended, collected and remitted as hereinafter provided, and the amount or amounts therein levied shall be credited against the tax required to be levied prior to delivery of the obligations. The recording officer of the municipality shall file in the office of the county auditor of each county in which any part of the municipality is located a certified copy of the resolution, together with full information regarding the obligations for which the tax is levied. No further action by the municipality is required to authorize the extension, assessment and collection of the tax, but the municipality's liability on the obligations is not limited thereto and its governing body shall levy and cause to be extended, assessed and collected any additional taxes found necessary for full payment of the principal and interest. The auditor shall annually assess and extend upon the tax rolls the amount specified for such year in the resolution, unless the amount has been reduced as authorized below or, if the municipality is located in more than one county, the portion thereof that bears the same ratio to the whole amount as the tax capacity value of taxable property in that part of the municipality located in his county bears to the tax capacity value of all taxable property in the municipality. Tax levies so made and filed shall be irrevocable, except that if the governing body in any year makes an irrevocable appropriation to the debt service fund of moneys actually on hand or if there is on hand any excess amount in the debt service fund, the recording officer may certify to the county auditor the fact and amount thereof and the auditor shall reduce by the amount so certified the amount otherwise to be included in the rolls next thereafter prepared. All such taxes shall be collected and remitted to the municipality by the county treasurer as other taxes are collected and remitted, and shall be used only for payment of the obligations on account of that levied or to repay advances from other funds used for such payments, except that any SUlplus remaining in the debt service fund when the obligations and interest thereon are paid may be appropriated to any other general pmpose by the municipality. CIa.. Rate The factors (class rates) for converting estimated market value to net tax capacity represent a basic element of the State's property tax relief system and are therefore subject to annual revisions by the State Legislature. Refer to the following page for a partial summary of these factors. (Remainder of page left intentionally blank) I -19- The following is a partial SUIII1IlllI}' of these factors: Property Tax Classifications Class Rate &hedule 1999/ 2{)()()/ 20011 2002/ 2003/ gg"" 1\J>e ofProoertv 1fJ!l!J. JJlQ1 2!Jf!1 2!!!J1 2flM la Residential Homestead Under $76,000 1.000% 1.000"A> 1.000% J.(100% 1.000% $76,001-$500,000 1.650 1.650 1.000 1.000 1.000 Over $500,000 1.650 1.650 1.250 1.250 1.250 ]a Amicultural T .1Ind & Builrlihcm Homestead: Under $1 15,000 .350 .350 .550 N1A NfA $115,000-$600,000 Under 320 Aotes .800 .800 .550 NfA N1A Over 320 Aotes .800 .800 .550 NfA N1A Over $600,001 Under 320 Aotes 1.200 1.200 1.000 NfA N1A 0ver320Aotes 1.200 1.200 1.000 NfA NfA Aoricu1tma1 H...........d - House. Gatue. One A=; First $500,000 1.000 1.000 1.000 Over $500,000 1.250 1.250 1.250 RP.mllinder of Farm- - First $600,000 .550 .550 .550 Over $600,000 1.000 1.000 1.000 2b NOI1-H~-tI AmiculturaJ , .5Inrt' 1.200 1.200 1.200 1.000 1.000 3a Commetcialllndu.<lriaI Public Uti1ilVt First $150,000 2.400 2.400 1.500 1.500 1.500 Over $150,000 3.400 3.400 2.000 2.000 2.000 Residential Non-Hn11'IfOo<!tAM AT\H1'hnenk: 4bb(I) I Unit First $500,000 1.000 1.000 I Unit Ove( $500,000 1.250 1.250 1 unit 1.000 1.000 .900 4d 1t<>3units 1.000 NfA 2 or3 units 1.000 1.000 .900 1.000 NfA 4a 4 or more units (ine1uding ~ for-profit hospitals) 2.400 2.400 1.800 1.500 1.250 Cities of population < 5,000 - 4 or more units 2.150 2.150 1.800 Four or more units built atlcc 6130.ll1 1.250 4bb(2) Under $76,000 1.200 1.200 1.000 1.000 1.000 $76,001-$500,000 1.650 1.650 1.000 1.000 1.000 Over $500,000 1.650 1.650 1.250 1.250 1.250 4b(4) Vacant , .aM 1.650 1.650 1.500 1.250 1.250 4e(1) g-Vlll:A.1 Rea:eationaI. Rcsidentialt.. Non-Commereia1: Under $76,000' 1.200 1.200 1.000 1.000 1.000 $76,001-$500,000' 1.650 1.650 1.000 1.000 1.000 Over $500,000' 1.650 1.650 1.250 1.250 1.250 Commercial seasonaI.....dentialreaeational- Ie under 250 days and includes homestead First $500,000 1.000 1.000 1.000 1.000 1.000 Over $500,000 1.000 1.000 1.000 1.000 1.000 4e(2) Qua\ifying golf couraes Under $500,000 1.650 1.650 1.000 1.250 1.250 Over $500,000 1.650 1.650 1.250 1.250 1.250 . -.............................-...... t Subject to lbc stair: geacnI proprrty ta. . Note: Forpurposee ofthc stale I nnmertvtu aaJy tbe Del IuCllp8cityofDon - oa.J. class 4c(1) RlISlJIIlllrcc.n:etioDlln:sidcutial property bas the fuIlowiag cIa8s tale structure: FKBt $76,000 0.40%. $76.00l-$SOO,OOO 1.00% -.:I overssoa.ooo I.25%. -20- CITY OF CENTERVll..LE ECONOMIC AND FINANCIAL INFORMATION ValoatiODS Real Property Personal Property Less Tax Increment District Deduction Fiscal Disparities1 (Contribution to Pool) Distribution from Pool Estimated Market Value 2003/2004 $ 250,385,600 2,111,700 Net Tax Capacity 2003/2004 $2,550,434 37,483 ( 29,689) ( 1ll,342) 358.572 Total Valuation 5 252 497 300 $2.805.458 Market Value after Sales Assessment Ratio The Minnesota Department of Revenue conducts the Real Estate Sales Assessment Ratio Stody to accomplish equalization of property valuations in the State and to determine the probable selling price of a property. The Stody is a three-year average of sale prices as related to the latest assessor's estimated market value. The latest Sales Assessment Ratio (2002) in Centerville is 84.9% meaning the County Auditor's recorded real property market value of $250,385,600 is 84.9% of the probable resale.estimated market value. We have made the following computations in deriving the market value figure used in the "Swnmary of Debt and Debt Statistics." 84.9"10 County Auditor's recorded real property estimated market value. Lates! Composite Ratio from the Real Estate Sales Assessment Ratio Stody of the Minnesota Department of Revenue. $250,385,600 $294,918,257 2.111.700 Indicated market value of real property. + Personal property. 5297.029 957 Indicated market value of real and personal property used in "Summary of Debt and Debt Statistics." 1 FifU"nl Dis~ Law The 1971 Legislalure 0Il8Cted a "fis<aI disparitiea law" which allows all die Twin City Metropolitan Ami Municipa1itiea to share in commerciaIf"mdustriaI growdI, regardless of _ the growth occum:d geogmphically. Forty pen:ent (40%) of every metropolitan municipality's growth in =ialfmdusttial assessed valualioo is pooled, thoo redistributed to all municipa1itiea 00 die basis of populatioo sod per capita va1uation qfter the tax increment sod fiseaI disparity adjustmoots. -21- Sales Assessment Ratio History Sales assessment ratios over the past ten years have been as follows': Year Amount 84.9% 87.6 88.6 92.1 90.8 Year 1997 1996 1995 1994 1993 Amount 2002 2001 2000 1999 1998 90.6% 90.8 90.4 88.6 91.2 Valnation Trends (Real and Personal Property) Valuation trends over the past ten years have been as follows: Net Tax Net Tax Capacity Capacity Levy Year/ Indicated Estimated Before Tax After Tax Collection Year Market Value Market Value Increment2 Increment3 200312004 $297,029,957 $252,497,300 $2,587,917 $2,805,458 2002/2003 261,978,427 222,692,300 2,222,736 2,437,574 2001/2002 205,970,987 180,650,300 1,875,844 2,071,728 2000/200 1 178,045,313 157,941,400 2,204,360 2,455,864 199912000 142,734,031 131,591,000 1,796,469 1,996,117 199811999 115,341,740 104,730,300 1,390,704 1,570,777 1997/1998 94,699,133 88,466,200 1,217,579 1,403,374 1996/1997 85,274,449 77,429,200 1,151,435 1,274,916 1995/1996 78,112,117 70,702,000 1,023,457 1,040,532 1994/1995 71,708,691 63,533,900 895,079 919,342 Breakdown of Val nations 2003/2004 Estimated Market Value, Real and Personal Property: Residential Homestead Agricultural Commercial & Industrial Non-Homestead Residential Personal Property Total $ 221,078,300 2,451,800 16,972,700 9,882,800 2.111.700 $ 252 497 300 87.56% .97 6.72 3.91 .84 100 00% 2003/2004 Net Tax Capacity. Real and Personal Property (before tax increment and fiscal disparity adjustments): Residential Homestead Agricultural Commercial & Industrial Non-Homestead Residential Personal Property Total $ 2,134,320 15,175 310,274 90,665 37.483 $ 2587917 82.47% .59 11.99 3.50 1.45 100 00% , The Sales ".'-~I Ratio for 2003 will not be available from 1he Minnesota Dep_ of Revenue until mid-July to August. 2 Also before fisca1 disparity ~ts. 3 Also after fisca1 disparity adjumments. -22- t Effective 2002, the Stale of Minnesota took over most of the funding for the school districts, including the geoemi fund, 1nnsporlatioo. el<. The ooly funding that IOIIl8ins for school districts is commuuity service, geoemI debt service, and geoeral net .... capacity. I. Property.... credits are aids provided by the Stale of Minnesota and paid directly to the City. Cities currently dednet property.... credits prior to certifying values with the county auditor. .23- Indirect Debt 2003/2004 2003/2004 Net Tax Net Tax Capacity Percentage Taxpayer's Capacity Value Applicable Share Issuer Valuef1) in CiN)) i!l..Q!x Net Debt of Debt Anoka County $ 232,765,614 $2,446,886 1.05% $ 84,195,()()()(2) $ 884,048 ISD No. 12, Centennial 21,314,048 2,446,886 11.48 87,333,786(3) 10,025,919 NMISD No. 916 411,410,793 2,446,886 .59 15,568,164(4) 91,852 Metropolitan Council 2,130,242,060 2,446,886 .11 5,468,000 (5) 6,015 Metro Transit 1,837,269,354 2,446,886 .13 113,703,881 (6) 147.815 Net llUlirect Debt: $11.155649 (I) Net tax capacity values are aile< tax inoremeot and tis<;al disparity contribution adjustments. (2) Anoka County bas bond indebtedness ofS84,195,ooo and sinking funds of SO as of December 31, 2003. (3) lSD No. 12, Centennial, reported bond indebtedness of $95,465,000 and sinking funds ofS5,211,214 as ofJanwuy I, 2004. (4) NMlSD No. 916, reported bond indebtedness of$15,965,ooo and sinking funds of$396,836 as of June 30, 2003. (5) Deductions: (A) $661,725,429 MeIropOlitan Waste Cootrol Commission Debt as of December 31,2003. Note I: Debt Service on A above is 100% self supported from revOllUCS oflbe Metro Sanitary Sewer System, although the bonds are full faith and credit bonds. Sinking funds of $9,370,000 and escrow funds of $22,930,000 have not been deducted because said funds are aIlributab1e to A above. Sinking fund/escrow balances are as of December 31, 2003. Note 2: The only tax supported bond indebtedness is $22,575,000 and sinking funds of$17,107,OOO as of December 31,2003. (6) Metro Transit "'POrted bond indebtedness of $160,085,000, sinking funds of $40,225,000 and escrow funds of $6,156,119 as of December 31, 2003. -24- Statutory Debt Limit Minnesota Statutes, Section 475.53, states that a city may not incur or be subject to a net debt in excess of two percent (2%) of its estimated market value. Net debt is, with limited exceptions, debt paid solely from ad valorem taxes. Computation of Legal nebt Margin as of May 3, 2004, plus this issue: 200312004 Estimated Market Value Times 2% of Estimated Market Value $252,497,300 x .02 Statutory Debt Limit $ 5 049.946 Outstanding bonds applicable to debt limit: None Total debt applicable to debt limit LeBaI debt margin $ $ o o $ 5 049 946 Cash and Investment Balances as of Deeember 31, 2003 (Unaudited) Fund General Food Special Revenue Foods nebt Service Foods Capital Projects Foods Enterprise Foods $1,209,506 13,901 2,638,929 1,256,007 3.355.326 Total Cash and Investment Balances $8.473 669 -25- Purpose: Dated: Original Amo.nt: M...rily: Interest Rates: 2004 2005 2D06 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Purpose: CITY OF CENTERVlLLE, MINNESOTA GENERAL OBLIGATION DEBT (As of May 3,2004, Plus This Issue) G.O. 0.0. G.O. G.O. G.O. G.O. W.." Sewer tmd Improvement Improvement Improvement Improvement Revenue Waler Bonds. Bonds Bonds Bonds Bonds, Revenue Bonds, s.rIa of of 20;{ Serks 1996 Seria 1998 1998 2000 2001 08101/96 S41O,OOO t-Feb 4.95-5.40% 07/01/98 S720,OOO I-F<b 4.10-4.80% 08101/98 S615,OOO I-F<b 4.10-4.50% 10/01/00 $650,000 I-Feb 4.65-5.25% 10101102 S635,OOO t-Feb 3.004.tOOIo lllOllOl $990,000 I-Feb 2.90-4.45% $0 SO $0 $0 $0 SO 2004 45,000 75,000 roo, ........~-....60:00(j'.! 10,000 80,000 55,000 2005 45,000 75,000 65,000 ! 10,000 85,000 55,000 2D06 50,000 80,000 70,000 10,000 90,000 55,000 2007 50,000 85,000 70,000 15,000 95,000 60,000 2008 0 85,000 75,000 15,000 100,000 60,000 2009 0 0 0 20,000 105,000 65,000 2010 0 0 0 20,000 115,000 70,000 2011 0 0 0 0 120,000 70,000 2012 0 0 0 0 125,000 70,000 2013 0 0 0 0 0 75,000 2014 0 0 0 0 0 0 2015 0 0 0 0 0 0 2016 0 0 0 0 0 0 2017 0 0 0 0 0 0 2018 0 0 0 0 0 0 2019 0 0 0 0 0 0 2020 SI90,ooo S4OO,OOO S340,OOO $100,000 $915,000 $635,000 (I) (2) (3)(4) (3) (3) (3) This lIS'" G.O. G.O. 0.0. Temponzry Temponzry Improvement Improvement Improvement Bo1U/s, Bonds. Bonds, Series Series 1003 Series 1004A 2004B D.ted: 07101/03 04101/04 06/01104 Orlglnal AmOlant: $740,000 $780,000 $2,200,000 Maturity: I-Jul I-Ape I-Feb Interest Rates: 1.50% 1.75% TOTALS: 2004 $0 SO SO $0 2004 2005 0 0 0 325,000 2005 2006 740,000 0 1l0,OOO 1,185,000 2006 2007 0 780,000 120,000 1,255,000 2007 2008 0 0 120,000 495,000 2008 2009 0 0 125,000 460,000 2009 2010 0 0 130,000 320,000 2010 2011 0 0 130,000 335,000 2011 2012 0 0 135,000 325,000 2012 2013 0 0 140,000 335,000 2013 2014 0 0 150,000 225,000 2014 2015 0 0 155,000 155,000 2015 2016 0 0 160,000 160,000 2016 2017 0 0 170,000 170,000 2017 2018 0 0 175,000 175,000 2018 2019 0 0 185,000 185,000 2019 2020 0 0 195,000 195,000 2020 S74O,ooo S780,ooo S2,200,OOO $6,300,000 (3) (3) (3) NOTE: 79.92" OF GENElUL OBLIGATION DEBT WILL BE RETIRED WlTll1N TEN YEARS. -26- CITY OF CENTERVlLLE, MINNESOTA GENERAL OBLIGATION DEBT (As of M".1' 3, 2004, Phis This IsslU) (I) TIoa<_=papobk_lyfroo<""_ofthe-'dpa1_oJJliJy_andoddit1ono11y"""""'byod_.....~oll"""""" property within the CltylUll/witItord /imitation ofl6MClllt. (1) 17Ie8e bortdr are payahk primarl/y /1'OfIf net re-.. of /he lIIIIIddpal.rewer aNI WQter utility systems and additioIfOIJy 2CIITf!tl by ad 'RJloreM taxe8 on olI tambk property widrln /he City oM wltItofIt /tJn#ation of llIIIOIlIfL (3) 71we iKmdf ~ ptZJItlbk primoriJy fro-. speciD/ aueuIIIe1IU against all benejittedproperty 0Ifd addItionul/y &l!ICIITeti by ad~ taxes on a//ttaohk pn:1PerlywiJJWr the City andwlthout limitation of~ (4) AIatIIrltiaofthese bonds ro 2005 tIrrouglr 2006. Ittelu.Jlveand(d) ZOO7 dumlgIr 2009, indwive, Gremldedtolffflltdatoryrede1nptitmon FebnIaty 1 of their ~ yeon. -27- SUMMARY OF DEBT AND DEBT STATISTICS General Obligation Debt Bonds secured primarily by water revenues Bonds secured primarily by sewer and water revenues Bonds secured primarily by special assessments (includes this issue) $ 190,000 400,000 5.710.000 $ 6,300,000 ( 2.638.929) $ 3,661,071 Total General Obligation Direct Debt Less debt service funds Net Direct General Obligation Debt Add City's share oCnet Indirect debt 11.155.648 Net Direct and Indirect Debt $14.816719 Facts for Ratio Computations 2003/2004 Indicated Market Value (real and personal property) 200312004 Net Tax Capacity (real and personal property, after tax increment and fiscal disparity adjustments) Population (2002 Estimate) $297,029,957 $2,805,458 3,430 Debt Ratios Net Direct Net Net and Direct Direct Indirect Indirect Debt Debt Debt Debt To Indicated Market Value 2.12% 1.23 % 3.76% 4.99% Per Capita $1,837 $1,067 $3,252 $4,319 Per Capita Adjusted 1 $1,617 $939 $2,862 $3,801 I The City's tax base is 11.9~.Io commercial & industrial, which has been deducted. .28. PROPOSAL FORM TO: CityofCenterville, Minnesota CIO Northland Securities, Inc. 45 South 7"' Street, Suite 2500 Minneapolis, Minnesota 55402 Phone: (612) 851-5900, Fax: (612) 851-5917 Sale Date: May 26, 2004 For all or none of the $2,200,000 General Obligation Improvement Bonds, Series 2004B, in accordance with the Official Terms of Bond Sale, we will pay yon $ , (not less than $2,161,500) plus accrued interest to date of delivery for fully registered Bonds bearing interest rates and maturing on February I as follows: % % % % % % % % 2006 2007 2008 2009 2010 2011 2012 2013 % 2014 % 2015 % 2016 % 2017 % 2018 % 2019 % 2020 True interest percentage: % Net interest cost: $ Term Bond Option: Bonds maturing in the years maturing in year Bonds maturing in the years maturing in year , to be accumulated into a Term Bond through through , to be accumulated into a Term Bond If our bid is not accepted, our good faith deposit in the amount of $44,000 shall be promptly returned to us. This bid is for prompt acceptance and is conditional upon deposit of said Bonds to a named registrar within 40 days from the date hereof, or thereafter at our option. We have received and reviewed the Preliminary Official Statement and have submitted our requests for additional information or corrections to the Official Statement dated May 10, 2004. As Syndicate Manager, we agree to provide the City with the reoffering price of the Bonds within 24 hours of the bid acceptance. Account Members: Account Manager: By: The foregoing offer is hereby accepted by and on behalf of the City of Centerville, Minnesota on May 26, 2004. City Administrator Mayor -29 - 470 Pillsbury Center 200 South Six1h Street Minneapolis MN 55402 & (612) 337-9300 telephone (612) 337-9310 fax httn:/Iwww.keonedv-2I.aven.com CHARTERED $2,200,000 General Obligation Improvement Bonds, Series 2004B City of Centervil\e Anoka County, Minnesota We have acted as bond counsel in connection with the issuance by the City of Centerville, Anoka County, Minnesota, of its General Obligation Improvement Bonds, Series 2004B, (the "Bonds"), original\y dated as of June I, 2004, in the original aggregate principal amount of $2,200,000. For the pmpose of rendering this opinion we have examined certified copies of certain proceedings taken by the City with respect to the authorization, sale and issuance of the Bonds, including the form of the Bonds, certain other proceedings and documents furnished by the City, and applicable laws of the State of Minnesota. From our examination of such proceedings and other documents, assuming the genuineness of the signatores thereon and the accuracy of the facts stated therein, and based upon laws, regnlations, rulings and decisions in effect.on the date hereof, it is our opinion that: I. The Bonds are in due form, have been dnly executed and delivered, and are valid and binding general obligations of the City, enforceable in accordance with their tenns. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor's rights general\y and by equitable principles, whether considered at law or in equity. 2. The principal of and interest on the Bonds are payable from special assessments levied or to be levied on property specially benefited by local improvements and ad valorem taxes for the City's share of the cost of the improvements, but if necessary for the payment thereof additional ad valorem taxes are required by law to be levied on al\ taxable property in the City, which taxes are not subject to any limitation as to rate or amount. 3. Interest on the Bonds is not includable in gross income of the recipient for federal income tax pmposes or in taxable net income for Minnesota income tax pmposes, and is not a preference item for pmposes of the computation of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax impnsed on individuals, trusts and estates, but such interest is includable in the computation of "adjusted current earnings," used in the calculation of federal alternative minimum taxable income of corporations, and is subject to Minnesota franchise taxes on corporatious (including financial institutions) measured by income and the alternative minimum tax base. The opinion set forth in the preceding sentence is subject to the condition that the City comply with al\ reqnirements of the Intema1 Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax pmposes and excluded from taxable net income for Minnesota income tax pmposes. We express no opinion regarding other federa1 or state tax consequences arising with respect to the Bonds. SJB-24320Svl CE1SS-21 We have not been asked and have not undertaken to review the accuracy, completeness or snfficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we express no opinion with respect thereto. This opinion is given as of the date hereof and we assume no obligation to update, revise, or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur. Dated at Minnespolis, Minnesota, WlILEC-23223Svl FORMS-FORMS APPENDIXB Proposed Form of Continuing Disclosure Certificate -I CONTINUING DISCLOSURE CERTIFICAlE This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of Centerville, Minnesota (the "Issuer") in connection with the issuance of $2,200,000 General Obligation Improvement Bonds, Series 2004B (the "Securities"). The Securities are being issued pursuant to authorizing resolution adopted by the City Council of the Issuer on April 14, 2004, and award resolution adopted by the City Council of the Issuer on May 26, 2004 (collectively, the "Resolutions") and delivered to the Purchaser{s) on the date hereof Pursuant to the Resolutions, 1he Issuer bas covenanted and agreed to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events. In addition, the Issuer hereby covenants and agrees as follows: Section 1. Pwpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders (defined herein) of the Securities in order to assist the Participating Underwriters (defined herein) in complying wi1h SEC Rule 15c2- 12(bX5). This Disclosure Certificate, together with 1he Resolutions, constitutes the written agreement or contract for the benefit of the Holders of the Securities that is required by 1he Rule. Section 2. Definitions. In addition to the defined terms set forth in 1he Resolutions, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any annual report provided by the Issuer pmsuant to, and as descnl>ed in, Sections 3 and 4 of this Disclosure Certificate. "Audited Financial Statements" means the Issuer's annual financial statements, prepared in accordance with generally accepted accounting principles ("GAAP") for Governmental Units as Prescnl>ed by the Governmental Accounting Standards Board ("GASB'l "Fiscal Year" means the fiscal year of the Issuer. "Final Official Statement" means the deemed final official statement dated , 2004 plus the addendmn thereto which together constitute 1he final official statement delivered in connection with the Securities, which is available from 1he MSRB. "Holder" means the person in whose name a security is registered or a beneficial owner of such a security. "Issuer" means the City of Centerville, Minnesota which is the obligated person with respect to the Securities. "Material Event" means any of the events listed in Section 5(a) of this Disclosure Certificate. SJB-243206vI CE155-21 "MSRB" means the Municipal Securities Rulemaking Board located at 1900 Duke Street, Suite 600, Alexandria, VA 22314. "NRMSIR" means any nationally recognized municipal securities information repository as recognized from time to time by the SEe for purposes of the Rule. "Participating Underwriter" means any of the original underwriter( s) of the Securities (including the Purchaser(s)) required to comply with the Rule in connection with the offering of the Securities. "Repository" means each NRMSIR and each SID, if any. "Rule" means SEC Rule 15c2-12(bX5) promulgated by the SEe lDlder the Securities Exchange Act of 1934, as the same may be amended from time to time, and including written interpretations thereof by the SEC. "SEC" means Securities and Exchange Commission. "SID" means any public or private repository or entity designated by the State of Minnesota as a state information depository for the purpose of the Rule. As of the date of this Certificate, there is no SID. Section 3. Provision of Annual Financial Information and Audited Financial Statements. (a) The Issuer shal1 provide, as soon as available, but not later than 12 months after the end of the Fiscal Year commencing with the year that ends December 31, 2003, each Repository with an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross- reference other information as provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual Report and will be submitted as soon as available. (b) If the Issuer is lDlable or fails to provide to the Repositories an Annual Report by the date required in subsection (a), the Issuer shal1 send a notice of that fiIct to the Repositories and the MSRB. (c) The Issuer shall determine each year prior to the date for providing the Annual Report the name and address of each Repository. Section 4. Content of Annual Renorts. The Issuer's Annual Report shal1 contain or inCOlpOrate by reference the following sections of the Final Official Statement: SJB-243206vl CE15s.-21 1. City Property Values 2. City Indebtedness 3. City Tax Rates, Levies and Collections In addition to the items Iisted above, the Annual Report shall include Audited Financial Statements submitted in accordance with Section 3 of this Disclosure Certificate. Any or all of the items listed above may be incorporated by reference from other documents, including official statements of debt issues of the Issuer or related public entitieS, which have been submitted to each of the Repositories or the SEC. If the document inCOlporated by reference is a final official statement, it must also be available from the MSRB. The Issuer shall clearly identify each such other document so incmporated by reference. Section 5. Reportinl1 of Material Events. (a) This Section 5 shall govern the giving of notices of the occurrence of any of the following events if material with respect to the Securities: I. Principal and interest payment delinquencies; 2. Non-payment related defaults; . 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the security; 7. Modifications to rights of security holders; 8. Bond calls; 9. Defeasances; 10. Release, substitution or sale of property securing repayment of the securities; and 11. Rating changes. (b) Whenever the Issuer obtains knowledge of the occurrence of a Material Event, the Issuer sbaI1 promptly file a notice of such occurrence with either all NRMSIRs or with the MSRB and with any SID. Notwithstanding the foregoing, notice of SJB..243206vl CElS5-21 L Material Events descnbed in subsections (aX8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Holders of affected Securities pursuant to the Resolutions. (c) Unless otherwise required by law and subject to tecbnical and economic feasIbiIity, the Issuer shall employ such methods of infonnation transmission as shall be requested or recommended by the designated recipients of the Issuer's information. Section 6. Termination of Reoortinl7 Oblil!lllion. The Issuer's obligations under the Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, or upon the redemption or payment in full of all the Securities. Section 7. As!:ent The Issuer may, fiom time to time, appoint or engage a dissemination agent to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate, and may discharge any such agent, with or without appointing a successor dissemination agent Section 8. Amendment Waiver. Notwithst.ntling any other provision of the Resolutions or this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally recognized bond counsel to the effect that such amendment or waiver would not, in and of itself; cause a violation of the Rule. The provisions of the Resolutions constituting the Undertaking and this Disclosure Certificate, or any provision hereof; shall be null and void in the event that the Issuer delivers to each then existing NRMSIR and the SID, if any, an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require the Resolutions and this Disclosure Certificate are invalid, have been repealed retroactively or otherwise do not apply to the Securities. The provisions of the Resolutions and this Disclosure Certificate may be amended without the consent of the Holders of the Securities, but only upon the delivery by the Issuer to each then existing NRMSIR and the SID, if any, of the proposed amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the compliance of the Resolutions and this Disclosure Certificate and by the Issuer with the Rule. Section 9. Additional Infonnation. Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer fiom dissemin.ring any other infonnation, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Certificate to update such infonnation or include it in any future Annual Report or notice of occurrence of a Material Event Section 10. Default In the event ofa firilure of the Issuer to comply with any provision of this Disclosure Certificate any Holder of the Securities may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the SlIl-243206vl CE155-21 Issuer to comply with its obligations under the Resolutions and this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default with respect to the Securities and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel perfonnance. Section II. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Participating Underwriters and Holders from time to time of the Securities, and shall create no rights in any other person or entity. IN WITNESS WHEREOF, we have executed this Certificate in our official capacities effective the day of , 2004. CENTERVILLE, MINNESOTA Mayor (SEAL) City Administrator SJB-243206vl CB1SS-21 APPENDIX C City's Financial Statements The following financial statements are e>:cerpts from the annual financial report for the year ended December 31, 2003. The complete financial statements for the year 2003 and the prior two years are available for inspection at the Centerville City Hall and the office of Northland Securities, Inc. The reader of this Official Statement should he aware that the complete financial report may have further data relating to the e>:cerpts presented in the appendi>: which may provide additional e>:planation, interpretation or modification of the e>:cerpts. Excerpts from the Financial Report ~ Statement of Net Assets ~ Balance Sheet - Governmental Funds ~ Statement of Revenues, E>:penditures and Changes in Fund Balances -Governmental Funds ~ Statement of Revenues, E>:penditures and Changes in Fund Balance - Budget and Actual- General Fund ~ Statement of Revenues, ExpeIISes and Changes in Fund Net Assets -Proprietary Funds ~ Combining Statement of Cash Flows - Enterprise Funds ~ Notes to the Financial Statements CITY OF CENTERVILLE, MINNESOTA STATEMENT OF NET ASSETS DECEMBER 31, 2003 Governmental Business-type Activities Activities Total ASSETS Cash and cash temporary investments $ 5,125,841 $ 3,355,328 $ 8,481,169 Receivables Accrued interest 13,959 10,112 24,071 Delinquent taxes 90,743 90,743 Accounts 7,078 119,508 126,586 Special assessments 460,568 408,255 868,823 Intergovernmental 4,698 4,698 Inventories 11,423 11,423 Prepaids 5,358 5,358 Deferred charges 11,608 3,957 15,565 Fixed assets (net of accumulated depreciation) 5,462,200 4,717,942 10,180,142 TOTAL ASSETS 11,182,053 8,626,525 19,808,578 LIABILITIES Accounts payable 155,062 544 155,606 Accrued salaries payable 5,645 797 6,442 Contracts payable 46,180 46,180 Due to other governments 3,040 3,756 6,796 Accrued interest payable 49,443 9,076 58,519 Deposits payable 24,300 24,300 Unearned revenue 14,370 14,370 Long-term liabilities Due within one year Bonds payable 375,000 70.000 445,000 Due in more !ban one year Compensated absences 9,477 2,418 11,895 Bonds payable 2,920,000 400,000 3,320,000 TOTAL LIABlLmES 3,602,517 486,591 4,089,108 NET ASSETS Invested in capital assets, net of related debt 2,167,200 4,247,942 6,415,142 Restricted for: Capital projects 71,631 71,631 Debt service 3,095,838 3,095,838 Unrestricted 2,316,498 3,820,361 6,136,859 TOTAL NET ASSETS $ 7,579,536 $ 8,139,934 $ 15,719,470 See Notes to Financial Statements. CITY OF CENTERVILLE, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2003 342 345 445 G.O. G.O.Temporary Improvement Improvemem Bonds of Bonds of Peltier General 2002 2003 Preserve ASSETS Cash and temporary mveslments $ 1,217,009 $ 834,673 $ 210,500 $ 267,399 Receivables Accrued interest 4,254 2,517 527 670 Delinquent taxes 90,512 Accounts (336) Special assessments 16,052 368,026 Due from other governments 4,698 Prepaid items 5,358 TOTAL ASSETS $ 1,337,547 $ 837,190 $ 579,053 $ 268,069 LlABll.lTIES Accounts payable $ 173,022 $ $ $ 957 Due to other governments 2,408 Contracts payable 20,516 Accrued salaries payable 5,554 Deferred IeVenue 88,183 347,331 TOTAL LlABll.lTIES 269,167 347,331 21,473 FUND BALANCE Reserved for debt service 5,358 837,190 231,722 Unreserved Designated 1,063,023 Undesignated 246,596 TOTAL FUND BALANCE 1,068,381 837,190 231,722 246,596 TOTAL LIABll.IT1ES AND FUND BALANCE $ 1,337,548 $ 837,190 $ 579,053 $ 268,069 See Notes to Financial Statements. (This page bas been intentionally left blank.) 1____ Other Total Oovemmcnta1 Govenunenta1 Funds Funds $ 2,596,262 $ 5,125,843 5,991 13,959 231 90,743 7,414 7,078 76,490 460,568 4,698 5,358 $ 2,686,388 $ 5,708,247 $ 5,383 $ 179,362 632 3,040 25,664 46,180 91 5,645 76,120 511,634 107,890 745,861 1,598,117 2,672,387 1,063,023 980,381 1,226,977 2,578,498 4,962,387 $ 2,686,388 $ 5,708,248 CITY OF CEN1ERVlLLE, MINNESOTA STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2003 342 345 445 G.O. G.O. Temporary hnprovement Improvement Bonds of Bonds of Peltier General 2002 2003 Preserve REVENUE General property taxes and other: Property $ 1,425,932 $ $ $ Tax increments Licenses and permits 270,719 Intergovernmental 162,332 Charges for services 773 Fines and forfeits 26,830 Special assessments 1,087 816,581 227,415 Interest on investments 20,777 6,147 1,389 4,894 Miscellaneous 34,564 18,500 TOTAL REVENUE 1,943,014 822,728 228,804 23,394 EXPENDITURES Current General government 472,947 Pnblic safety 789,171 Public works 286,508 Culture and recreation 57,896 Economic development 3,711 Miscellaneous 15,085 Capital outlay 91,118 516,810 Debt service Principal Interest and other 18,642 5,550 TOTAL EXPENDITURES 1,716,436 18,642 5,550 516,810 EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES 226,578 804,086 223,254 (493,416) OlliER FINANCING SOURCES (USES) Operating transfers in 9,434 21,732 Bond proceeds 21,720 718,280 Discount on bonds issued (13,252) Operating transfers out (105,564) TOTAL OlliER FINANCING SOURCES (USES) (96,130) 8,468 740,012 EXCESS (DEfICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 130,448 804,086 231,722 246,596 FUND BALANCE, JANUARY I 937,933 33,104 FUND BALANCE, DECEMBER 31 $ 1,068,381 $ 837,190 $ 23\,722 $ 246,5% See Notes to Financial Statements. 472,947 789,171 286,508 3,883 61,779 3,711 15,085 339,832 947,760 377,237 377,237 93,173 117,365 814,125 3,071,563 (347,437) 413,065 177,625 208,791 740,000 (13,252) (92,687) (J 98,251) 84,938 737,288 OIher Governmental Funds s 39,070 57,987 54,669 314,962 466,688 (262,499) 2,840,997 S 2,578,498 Total Governmental Funds S 1,425,932 39,070 270,719 162,332 773 26,830 1,103,070 87,876 368,026 3,484,628 1,150,353 3,812,034 S 4,962,387 CITY OF CENTERVILLE, MINNESOTA STATEMENT OF REVENUE, EXPENDI1URES AND CHANGES IN FUND BALANCE - GENERAL FUND BUDGET AND AClUAL YEAR ENDED DECEMBER 3 1,2003 Variance - Budgeted Amounts Favorable Original Final Actual (Unfavorable) REVENUE General property taxes $ 1,480,623 $ 1,480,623 $ 1,425,932 $ (54,691) Licenses and pamits 217,400 217,400 270,719 53,319 Intergovernmental 145,346 145,346 162,332 16,986 Charges for services 1,600 1,600 773 (827) Fines and forfeits 20,000 20,000 26,830 6,830 Special assessments 1,087 1,087 Interest on investments 20,000 20,000 20,777 777 Miscellaneous 22,000 22,000 34,564 12,564 TOTAL REVENUE 1,906,969 1,906,969 1,943,014 36,045 EXPENDITURES Current General government 483,470 483,470 472,947 10,523 Public safety 676,163 676,163 789,171 (113,008) Public works 211,384 211,384 286,508 (75,124) Culture and recreation 70,493 70,493 57,896 12,597 Economic development 6,000 6,000 3,71l 2,289 Miscellaneous 10,000 10,000 15,085 . . (5,085) Capital outlay 389,223 389,223 91,118 298,105 TOTAL EXPENDITURES 1,846,733 1,846,733 1,716,436 130,297 EXCESS (DEF1CIENCY) OF REVENUE OVER EXPENDITUI 60,236 60,236 226,578 166,342 OlliER F1NANCING SOURCES (USES) Operating transfer in 9,434 9,434 Operating transfer out (60,236) (60,236) (105,564) (45,328) TOTAL OTIIER FINANCING SOURCES {USES) (60,236) (60,236) (96,130) (35,894) EXCESS (DEF1C1ENCY) OF REVENUE AND OlliER F1NANClNG SOURCES OVER EXPENDI1URES AND OTIIER F1NANCING USES $ $ 130,448 $ 130,448 FUND BALANCE, JANUARY 1 937,933 FUND BALANCE, DECEMBER 31 $ 1,068,381 See Notes to Financial Statements. CITY OF CENTERVILLE, MINNESOTA STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS YEAR ENDED DECEMBER 31, 2003 Business-type Activities - EnleIprise Funds Water Sewer Totals OPERATING REVENUE Charges for services $ 195,229 $ 233,299 $ 428,528 OPERATING EXPENSES Salaries and benefits 45,217 44,477 89,694 Supplies 32,259 575 32,834 Other services and charges 39,895 13,693 53,588 Utilities 2,922 1,441 4,363 MCES - Disposal cbarges 126,693 126,693 Depreciation and amortization 66,515 65,734 132,249 TOTAL OPERATING EXPENSES 186,808 252,613 439,421 OPERATING INCOME (LOSS) 8,421 (19,314) (10,893) NONOPERATING REVENUE (EXPENSE) Interest on investments 29,894 45,938 75,832 Special assessments 322,521 202,570 525,091 Hook up fees and unit charges 94,735 94,574 189,309 Interest expense (14,515) (17,837) (32,352) TOTAL NONOPERATING REVENUE (EXPENSE) 432,635 325,245 757,880 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 441,056 305,931 746,987 CAPITAL CONTRIBUTIONS FROM OTHER FUNDS 194,929 75,712 270,641 OPERATING TRANSFERS OUT (10,540) (10,540) CHANGES IN NET ASSETS 625,445 381,643 1,007,088 TOTAL NET ASSETS, JANUARY 1 2,437,661 3,197,592 5,635,253 PRIOR PERIOD ADJUSTMENT 747,626 749,967 1,497,593 TOTAL NET ASSETS, DECEMBER 31 $ 3,810,732 $ 4,329,202 $ 8,139,934 See Notes to Financial Statements. CITY OF CENTERVIlLE, MINNESOTA COMBINING STATEMENT OF CASH FLOWS ENTERPRISE FUNDS YEAR ENDED DECEMBER 31, 2003 W.tJ>r Sewer Total CASH FLOWS FROM OPERATING ACTMTlES Charges for services: Receipts from customers and users $ 193,438 $ 242,621 $ 436,059 Paymenls to suppliers (81,992) (145,958) (227,950) Paymenls to employees (45,297) (44,349) (89,646) NET CASH PROVIDED BY OPERATING ACTIVITIES 66,149 52,314 118,463 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfer out (10,540) (10,540) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTlVlTIES Purchase and construction of capital assets (14,752) (14,752) Hook up fees and unit charges 94,735 94,574 189,309 Special assessments received 91,723 35,056 126,779 Principal paid on bonds (29,250) (35,750) (65,000) Interest paid on bonds (10,431) (12,845) (23,276) NET CASH PROVIDED BY CAPITAL AND RELATED FINANCING ACTIVITIES 146,777 66,283 213,060 CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments 28,776 44,744 73,520 NET INCREASE IN CASH AND CASH EQUN ALENTS 231,162 163,341 394,503 CASH AND CASH EQUIVALENTS, JANUARY 1 1,125,148 1,835,677 2,960,825 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1,356,310 $ 1,999,018 $ 3,355,328 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Assets contnbuted by other fimds $ 194,929 $ 75,712 $ 270,641 Assets contnbuted by other fimds in prior years and recorded as prior period adjustment $ 897,859 $ 900,465 $ 1,798,324 See Notes to Financial Statements. Water Sewer 2003 RECONClLIA nON OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACI'MTIES Operating income (loss) $ 8,421 $ (19,314) $ (10,893) Depreciation and amortization 66,515 65,734 132,249 (Increase) decrease in assets: Accounts receivable (1,791) 9,322 7,531 Inventories (724) (724) Increase (decrease) in liabilities: Accounts payable (6,192) (3,556) (9,748) Aocrued salaries payable (80) 128 48 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 66,149 $ 52,314 $ 118,463 CITY OF CENTERVIlLE, MINNESOTA NOTES TO FINANCIAL STAlEMENTS DECEMBER 31, 2003 Note 1: SUMMARY OF SIGNlFlCANT ACCOUNTING POLICIES A. Reporting Entity The City of eenterville 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 bas considered all potential units for which it is financially accountable, and other organizations for which the nature and sigoificance of their relatiouship- 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) bas set forth criteria to be considered in de!ennining fmancial accountability. These criteria include appointing a voting majority ofan organization's governing body, and (I) the ability of the primary government to iropose its will on that organization or (2) the potential for the organization to provide specific benefits to, or iropose specific financial burdens on the primary government. The City does not have any component units. - B. Government-Wide and Fund Flnanctal Statements The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on: all of the nonfiduciaty activities of the primary government and its component units. For the most part, the effect of interfund activity bas been removed from these statements. Governmental activities. which normally are supported by taxes and intergovemmental revenues, are reported separately from business-type aetivities. which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. DirecJ expenses are those that are clearly identifiable with a specific function or segment. Program revenues inclnde 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 contnbutions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary fimds. Major individual governmental fimds and major individual enterprise fimds are reported as separate columns in the fund financial statements. C. Measurement Foeu>, Basis of Accounting, and FInancial Statement Presentation The government-wide financial statements are reported using the economic resources measurementfocus and the accrual basis of aecounting. as are the proprietary fund financial stalements. 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 elig>bility re'l.uirements imposed by the provider have been met. Governmental fund financials1aternents are reported using the current fi7U11lCial resources measurement focus and the modijied 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 colleCl1ble within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose. the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable aod available only when cash is received by the government. CITY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES - CONTINUED The City reports the following major governmental funds: The generalfund is the governm<mt's primary operating fund. It accounts for all financial resources of the general government, except those reqnired to be accounted for in another fund. The G.O. Improvement Bonds of 2002 fund accounts for the resonrces accnmu1ated and payments made for principal and interest on long-term general obligation debt of the governmental fund. The G.O. Temporary Improvement Bonds of2003 fund accounts for the resources accumn1ated and payments made for principal and interest on long-term general obligation debt of the governmental fund. The Peltier Preserve fund account for the resources to complete the capital project development 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 acconnts for the activities of the City's sewage collection operations. Private-sector standards of accounting and financial reporting issued prior to December I, 1989, generally are followed in both the governrnent-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidan<:<! of the Governmental Accounting Standards Board (GASB). Governrnents also bave the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government bas elected not to follow subsequent private-sector guidan<:<!. As a general rule the effect ofinterfund activity bas been elintinated from government-wide financial statements. Exceptions to this general rule are cbarges between the government's water and sewer function and various other functions of the government Elintination of these cbarges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include I) charges to customers or applicants for gonds, services, or privileges provided, 2) operating grants and contnbution, 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 revennes of the City enterprise funds are cbarges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and selVices, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resoUICes first, then unrestricted reso=es as they are needed. CITY OF CENTERVll.LE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED D. Assets, LiablUlles, and Net Assets or Equity Deposits and Investments The City's cash and cash equivalents are considered to be cash on band, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Minnesota Slatutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, COIpOIate bonds, repurchase agreements and shares of investment companies regislereci under the Federal Investment Company Act of 1940 and whose only investments are obligations guaranteed by the United States or its agencies. Investments for the City are reported at filir value. Earnings on investments are allocated to the individual funds based upon the average of month-<:nd cash and investment balances. The Minnesota Municipal Money Market Fund (4M) investment pool operates in accordance with sppropriate state laws and regulations. The reported value of the pool is the same as the filir value of the pool share. Accounts Receivable Accounts receivable include amounts billed for services provided before year end. UnbiUed utility enterprise fund receivables are also included for services provided in 2003. 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. Inlerfund Receivables and Payables Tl'aI1Sactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "interfund receivableslpayables" (i.e, the current portion of interfund loans) or "advances toIfrom other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due toIfrom other funds." Advances between funds are offset by a fund balance reserve account in spplicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. 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. Taxes payable on homestead property, as defined by Minnesota statutes, were partially reduced by a market value credit aid The credit is paid to the City by the State of Minnesota in lieu of taxes levied against the homestead property. The State remits 1his credit in two equal insta1hnents in October and December each year Delinquent taxes receivable inc1nde the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred revenue liability for delinquent taxes not received within 60 days after year end in the fund financial statements. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are reoognized as revenue when they are received in cash or within 60 days after year end All special assessments receivable are offset by a deferred revenue liability in the governmental funds. CTIY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Inventories and Prepaid Items All inventories are valued at cost using the first-in/first-out (FIFO) method Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund fmancial statements. I 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 governmeDl-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 (arnouDl 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 coDSlruCted. Donated capital assets are recorded at estimated fair market value at the date of donation. The cosls of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred doring the construction phase of capital assels of business-type activities is included as part of the capitalized value of the assets coDSb:Ucled. Property, plant, and equipment of the City, as well as tIie component units, are depreciated using the slrlligbt line method over the following estimated useful lives: Assets Buildings and building improvements Other improvements Infrastructure Equipment, machinery and vehicles Years 7-50 20-25 25-50 3-25 Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay any amounts when employees separate from service with the City. All vacation pay is accrued when incurred in the government-wide and proprietary funds. A liability for these amounts i. reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Union employees are allowed severance eqnal to their unused compensatory time and half their accrued sick leave up to a maximum of 400 homs after 10 years of service. In governmental fund type. the cost of these benefits is recognized when payments are made to the employees. I CITY OF CENTERVlLLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2003 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Long-term Obligations In the government-wide financial slatements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, bnsiness- type activities, Gt proprietary fund type statement of net assets. Beginning January 1, 2003, beIDd ptemiums and disc<>unts, as well as issWlIlCC costs, are deferred and amortized over the life Gf the bonds nsing the straight line meth<>d Bond iSSWlIlCC costs are reported as deferred charges and amortized Gver the term of the related debt. In the fund financial statements, governmental fund types recognized bond premiums and disc<>unts, as well as bond issuance costs, during the current period. The face amount of debt issned is reported as Gther financing sources. Premiums received Gn debt issuances ate reported as other financing sources while disc<>unts on debt issuances are rep<>rted as other financing nses. Issuance costs, whether Gr not witbheld from the actual debt proceeds received, are rep<>rted as debt service expenditures. Fund Equity In the fund financial statements, governmental funds rep<>rr reservations of fund balance for amounts that ate not available for appropria1iGn Gr are legally restricted by ontside patties for nse for a specific pmpose. Designations of fund balance represent tentative management plans that are snbject to change. Comparative Data/Redasslfications Compatative total data for the prior year have been presented Gnly fur individual enteIprise funds in the fund financial statements in order to provide an understanding Gf the changes in the financial positiGn and operations of these funds. Also, certain amounts presented in the priGr year data bave been reclassified in Grder to be coGSis1ent with the current year's presentation. NGte 2: STEW ARDSlIIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information Annual budgets ate adopted on a basis cOGSistent with accountiog principles generally accepted in the United States Gf America for the general fund. All annual appropristioGS lapse at fiscal yellt end. The City does not nse encumbrance accounting. In August of each yeat, all departments of the City submit requests for appropriations to the City Administrator so that a budget may be prepared. BefGre September 15, the proposed budget is presented to the Council for review. The Council holds pnblic hearings and a fina1 budget is prepared and adopted in early December. The appropriated budget is prepared by fund, functiGn and department. The City's department heads, with the approval Gfthe City Administrator, may make lraGSfers of appropria1iGus within a department Transfers of appropriations between departments require the approval of the Council The legal level of budgetary control is the department level. Budgeted amounts are as originally adopted, or as amended by the Council. There were no budget amendments made during the year. . CITY OF CENfERVIILE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - CONTINUED B. Excess of Expenditures Over Appropriation, For the year ended December 31, 2003, expenditures exceeded appropriations in the following departments (the I.gallevel of budgetary control). Genera1 government Elections Economic development Legal aod accounting Insurance General government building Public safety Police protl:ction Fire protection Animal control Public works Street Misce1laneons $ 43 229 4,595 80 6,206 1,820 118,782 859 80,426 5,085 These over expenditures were funded by lower than expected expenditures in other departments aud greatl:r than aoticipated revennes. C. Deficit Fund Equity The following funds had. deficit fund balance as of December 31,2003: Capital projects funds TIF District 1-4 Huntl:r" Crossing Phase IT CeuterviJle TOM! Office Park $ 8,441 10,856 675 The City plans to fund these deficits with future revenues from tsx increment, special assessments aod transfer from other fuods. CITY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 3 I, 2003 Note 3: DETAILED NOTES ON ALL FUNDS A. Deposits and Investments At year end., tbI: City's carrying amount of deposits was $6,825,366 and tbI: bank balance was $6,862,799. Of the bank balance, $583,776 was covered by federal depository insurance or by collateral held by the City's agent in the City's name. The remaining balance of $6,279,023 was collateralized with securities held by the pledging finaneial institution's trust deparment or agent in the City's name. Investments are categorized into these three categories of credit risk: 1. Insured or registered, or securities held by the City or its agent in the City's name. 2. Uninsured and unregistered, with securities held by the countelplll1y's trust department or agent in the City's name. 3. Uninsured and unregistered, with securities held by the countelplll1y, or by its trust department or agent, but not in the City's name. At year end., the City's investment baIanees were as follows: I Cate20rv 2 3 Reported Amount! Fair Value U.S. Government securities $ 1 643 229 ~ $ _ $ 1 643 229 InveSbnents not subject to categorization: Broker money market account 4M Investment Pool 7,314 5.060 Total investments ~ 16S5603 Total cash and investments Deposils Investments Petty cash $ 6,825,366 1,655,603 200 Total cash and investmenls $ 8481169 CITY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED B. Receivables Receivables as of year end for the City's iodividual major funds and non-major funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follo'W'S: G.O. G.O. Improv=nt Improvement Peltier Bonds Bonds Preserve General of2002 nf2003 Proiect Receivables Interest S 4,254 $ 2,517 S 527 S 670 Tlllres 90,512 Accounts (336) Special assessments 16,052 368,026 Intergovernmental 4.698 Total receivables S 115180 $ 2517 S 368 553 S 670 Non-major and Other Water Sewer Funds Total Receivables Interest $ 4,080 $ 6,032 $ 5,991 $ 24,071 Taxes 231 90,743 Accounts 48,392 71,116 7,414 126,586 Special assessments 240,100 168,155 76,490 868,823 Intergovernmental 4698 Total receivables $ 292 572 $ 245 303 $ 90 126 $ 1 114921 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 recoguition 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: Unavm1ahle Un~med General fund Delinquent property taxes receivable $ 57,762 S Special assessments not yet due 16,051 2004 antenna lease received in 2003 14,370 Debt service fund Special assessments not yet due 423.451 Total deferred/uneamed revenue for govemmental funds $ 497 264 S 14 ::;70 CITY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED C. Capital Assets Capital asset activity for the year ended December 31, 2003 was as follows: Beginning Ending B" hmce Increases Decreases Balsnce Governmental activities: Capital assets, not being depreciated: Land $ 1,241,300 $ $ $ 1,241,300 Construction in progress 603.879 603.879 Total capitaJ assets, not being depreciated 1.241.300 603.879 1.845.179 Capital assets, being depreciated: Buildings 1,028,100 3,881 1,031,981 Machinery and equipment 560,988 23,897 (5,000) 579,885 Infrastructnre 3.345.565 3.345.565 Total capits! assets being depreciated 4.934.653 27.778 (5.000) 4.957431 Less acclllDllla.ted depreciation for: Buildings (503,077) (17,442) (520,519) Machinery and equipment (148,363 ) (41,815) (190,178) InfraslIUctnre (494.919) !l34 794 ) (629.713) Total accumnlated depreciation (1.146.359) 094.051 ) (1.340.410) Tots! capital assets, being depreciated, net 3.788.294 (166.273 ) (5.000) 3.617021 Governmental activities capital assets, net $ 5 029 594 $ 437.606 $ (5000) $ 5 462 200 CITY OF CENTERVIlLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Busines....type activities: Capital assets, not being depreciated: Construction in progress Capital assets, being depreciated: Buildings and system Improvements other than buildings Total capital assets being depreciated Less aceumulated depreciation for: Buildings and system Total accumulated depreciation Total capital assets, being depreciated, net Business-type activities capital assets, net Beginning Balance Ending BalAnce Increases Decreases $ 1.052.652 $ 246.105 $ (1.052.652) $ 246.105 4,262,738 1,091,940 5,354,678 126.552 126.552 4.389290 1.091940 5.481.230 (877 .804) 1131 589) (1.009.393 ) (877,804 ) (131,589) (1,009,393 ) 3.511.486 960.351 4.471.837 $ 4.564 138 $ 1 206 456 $ f1 052 6~2) $ 4.717947 Depreciation expense was charged to functionslprograms of the City as follows: Governmental activities: General government Public safety Highways and streets, including depreciation of general infrastructure assets Culture and recreation $ 21,155 3,319 162,083 7.503 Total depreciation expense - governmental activities $ 194060 Business-type activities: Water Sewer $ 66,218 65.371 Total depreciation expense - business-type activities $ 131589 CITY OF CENTERVlLLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2003 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED D. Long-term Debt General Obli""tion Bonds The government issues geneIlll 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 government. General obligation bonds cwrently outstanding are as follows: General Obligation Improvement Bonds The following bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. Some issues, bowever, are partly financed by ad valorem tax levies. All special assessment debt is backed by the full faith and credit of the City. Each year the combined assessment and tax levy equals 105 percent of the amount required for debt service. The excess of 5 percent is to cover any de1inquencies in tax or assessment payments. Authorized Balance and Interest Issue Maturity at Issued Rate Date Date YearEnd G.O. Improvement Bonds ofI998 $ 615,000 4.25-4.50% 08-01-98 02-01-09 S 400,000 G.O. Improvement Bonds of2ooo 650,000 4.70-5.25 11-01-00 02-01-11 300,000 G.O. Improvement Bondsof2oo1 990,000 2.90-4.45 11-01-01 02-01-13 990,000 G.O.lmprovement Bonds of 2002 635,000 3.00-4.10 10-31-02 02-01-14 635,000 G.O. Temporary improvement Bonds of 2003 740,000 1.50 07-01-03 07-01-06 740.000 Total General Obligation Improvement Bonds $ 1 065 000 General Obligation Revenue Bonds The following bonds were issued to finance improvements to the water system. They will be retired by user charges and are backed by the full faith and credit of the City. Governmental activities: G.O. Water Revenue Bonds of1996 $ 410,000 5.05-5.40% Business-type aetivities: G.O. Water and Sewer Revenue Bonds of1998 720,000 4.15-4.80 08-01-96 02-01-08 S 230,000 07-01-98 02-01-09 470.000 Total General Obligation Revenue Bonds $ 700 000 CITY OF CENTERVlLLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Compensated Absences This liability represents vested benefits earned by employees through the end of the year, which will be paid at tenninatioo of employment in future years. Total compensated absences $ 11895 Changes in Long-term Liabilities. During the year ended December 31, 2003, the following changes occurred in liabilities reported in the general long-term debt account group. Balance January I, 2003 Additioos Balance December 31, Reductions 2003 Due Within One Year Governmental activities: G.O. Improvement Bonds $ 2,605.000 $ 740,000 $ 280,000 $ 3,065,000 $ 335,000 G.O. Revenue Bonds 270,000 40,000 230,000 40,000 Capital Lease Payable 57,238 57,238 Compensated Absences 14,347 4,870 9,477 Business-type activities: G.O. Revenue Bonds 535,000 65,000 470,000 70,000 Compensated Absences 3.167 749 2.418 Total $ 3.4&4752 $ 740000 $ 447.857 $ 3.776895 $ 445 000 The annual service requirements to maturity for all bonds outstanding at December 31, 2003 are as follows: G.O. G.O. Improvement Revenue Bnnds Bonds Total 2004 $ 432,308 $ 141,248 $ 573,556 2005 291,513 145,853 437,366 2006 1,033,830 140,123 1,173,953 2007 284,430 144,023 428,453 2008 290,440 142,449 432,889 2009-2013 1,148,928 87,038 1,235,966 2014-2018 76.536 76.536 Total 3,557,985 800,734 4,358,719 Less interest 1492.985 ) 1100.734 ) 1593.719) Principal $ 3 065 000 $ 700 000 $ 3 765 000 CITY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Tax Increment Districts The City is the administering authority for the following tax. increment financing districts: District Number 1-4 Adjusted Origina! Tax Capacity Current Tax Capacity (payable 2003) $ 4,007 32.336 Captured Tax Capacity Retained by the City Type ofDistrict $ 28 329 Economic Development Fond Equity Reservations and Designations The components of fund equity are described in Note 1. Certain reservations and designations bave been made in the following funds: Pumose Amount Reserved Proprietary Fund Sewer Govel'llD1eDlal Funds Debt service Senior housing project commitment $ 71631 Debt service on bonds issned S ~~723g7 Unreserved - Designated Governmental Funds General Working capital $ I 063 023 Nnte 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 ofMi1mesota (PERA). PERA administers the Public Employees Retirement Fund (pERF), which is a cost-sharing, multip1e-employer retirement plan The plan is established and administered in accordance with Minn2S0ta statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan Coonlinated Plan members are covered by Social Secnrity 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 eligtble members. Benefits are established by Minnesota statute, aod vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and years of credit at termination of service. CITY OF CENTERVIlLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED Two methods are used to compute benefits for PERF's Coordinated and Basic Plan membeIs. The retiring member receives the higher of a step-rate benefit accrual formula (Method I) or a level accrual formula (Method 2). Under Method I, 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 aversge salary for Basic Plan ntembers and 1.7 percent for Coordinated Plan members for each year of service. For all PERF members whose annuity is calculated using Method I, a full annuity is available when age plus years of service equal 90. A rednced retirement annuity is also avai1able to eligible members seeking early retirement. There are different types of annuities available to membeIs upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree - - no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contnbutions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contnbutions are available at any time to members who leave public service, bnt 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 lime they last terminated their public service. PERA issues a publicly available financial report that inclndes financial statements and required supplementary information for PERF. That report may be obtained on the web at www.nmpera.org, by writing to PERA, 60 Empire Drive, Suite 200, SI. Paul, Minnesota 55103-1855 or by calling 651-296-7460 or 1-800-652-9026. B. Funding Policy Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. The.e statute. are established and amended by the State legi.lature. The City make. annual contributions to the pension plans equal to the amount required by Minnesota .tatute. PERF Basi. Plan members and Coordinated Plan members are required to contribute 9.10 percent and 5.10 percent, respectively, of their annual covered salary. The City is required to contnbute the following percentages of annual covered payroll: 11.78 percent for Basic Plan PERF members and 5.53 percent for Coordinated Plan PERF members. The City's contnbutions to the PERF for the year ended December 31, 2003, 2002 and 2001 were $23,440, $20,932 and $15,963, respectively. The City'. eontnbntions were equal to the eontractually required contributions for each year as set by Minnesota statutes. CITY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 5: CHANGE IN ACCOUNTING PRINCIPLE During fiscal year 2003, the City implemented several new accounting pronouncements issued by the Government Accounting Standards Board (GASB). They are Statement No. 34, "Basic Financial Statements - and Managements DiscussiDn and Analysis -for State and Local GovemmenJs ", Statement No. 37, "Basic Financial Statements - and Management's Discussion and Analysts -for State and Local Governments: Omnibus ", and Statement No. 38, "Certain Financial Statement Note Disclosures ", paragmpbs 6 through II. Because of implementation of the new standards, an adjustmenl is required for the December 31, 2002, carry forward (net asset) balance of the governmental funds. The following schedule reconciles the January 1,2003 balance to the December 31, 2002 net asset balance using the new accounting standards. Fund balance, December 31, 2002 Adjustments: Net book value of capital assets Bonds payable, net Accrued interest Compensated absences payable Deferred revenue on special assessments Deferred revenue on laxes $ 3,812,033 5,376,951 (2,932,237) (58,139) (14,347) 97,067 31.781 Total net assets as restated, January 1,2003 S 6113 109 Note 6: OTHER INFORMATION A. Risk Management The City is exposed to various risks ofloss 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 Trost (LMCIT), which is a risk sbaring pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its womrs 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 SeUled 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 (ffiNRs). The City's management is not aware of any incurred but not reported claims. B. Legal Debt Margin In accordance with Minnesota sta1ntes, 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 laxes and, therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or lax increments. The City does not have any debt subject to the 2 percent limit Note?: FIRE PROTECTION DISTRICT In 1985, the City discontinued providing the fire protection services to the Centerville colllDlUIlity. The City joined the Centennial Fire District (District), along with lbe cities of Circle Pines and Lino Lakes. The City conJributed all fire apparams and equipment items to the DistricL The City pays an annual membership fee to the District based on their percentage of the computed annual depreciation on the apparams and equipment values. The District still houses equipment in the City's building and pays for a share of the utilities. CITY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 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 bas issued $1,290,000 ofHousing Developmem Revenue Bonds to provide for construction cost> 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 revc:nue 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 exist> until December 31, 2012. No expenses were incurred relating to the commi"""nt in 2003.