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HomeMy WebLinkAbout2009 06-19 CCPCity of Gem Lake, MN City Council Meeting June 16, 2009 Call To Order Of City Council Meeting — By Mayor Uzpen at 7: P.M. Call of Roll Uzpen Artig-Swomley Lindner Rasmusen Watson Others in Attendance: Sign-up Sheet Approval. of City Council Minutes and Agenda • Minutesof the City Council. Meeting of May 19,.2009 • City Council Agenda for this meeting. (Accept Agenda) Committee Reports Accept the following Planning Commission Minutes • May5, 2009 • Special Meeting on May 12, 2009 • June 2, 2009 Public Notices None Old Business • City News Letter Next Addition o July News Letter — Ideas. • Surface Water Project. Plan and Time Line Watson o May - Distribute. Educational Hand outs o Inspection of Outfalls o July - ,Educational piece on SEPP in Newsletter a Contact neighboring cities in regards to SEPP education o August Annual Meeting New Business • 2008 Audit Report-::LarsenAlien LLP • Monthly :Financial Reports • Claims for June • Scheuneman Road Business District Discussion o Cost for Version 1.5 o How to assess and implement. • The need to purchase a sign for Scheuneman Road. Residential District for placementby the. Golf Course. • Two Ilandouts. From Kelly and .Leinrnons o New Legislation Regarding. State Building Code Enforcement - Disabilities Lookfor us on the World Wide Web atgemlakemn.org ❑ Proposed Legislation Regarding Administrative Penalties - Minor Traffic'. Offenses • White Bear Mechanical is out of business. • Sheriffs department eliminating back-up for Jean. • Open Items for the Council Meinbersto bring up. ■ Presentationsfrom the Public Future Council Meetings. ■ Next Workshop Meeting,July 6 at 7:00 P.M. ■ Next. City Council Meeting, July 21. at 7:00 P.M. Adjournment • The meeting adjourned at Look for us on the World Wide Web at geinlakernn.org Workshop Agenda .6/1 /2009 • Latest information on Scheuneman Road Business District • SEH Contract for Comp Plan • Start thinking about Gate Way Ordinance Incentives • Comp Plan discussion Gem Lake City Council Meeting June 16, 2009 Sign -In Sheet Paul Emedtt Thomas Koop — Larson Allen Michelle Burley Larson Allen Look for uson the World Wide Web at gernlaketrin,org MEMORANDUM. Date: •June 1 0, 2009 To: Gem Lake City Council From: Jessie Hart, Treasurer Re: 2008 Audit Report - Presentation Tom Koop, Principal and Michelle Bruley, of LarsonAllen LLP will be at the Council Meeting on Tuesday, June 16, 2009 to present the 2008 Audited. Financial Statements and Independent Auditor's Report and "Letter of Audit. Related Communications to City Council". l have included an electronic copy of the report and letter for your review. Printed bound copies will be available at the meeting if you wish to have copy. An official copy will be kept at Heritage Hall as well as in my files. We did not encounter any difficulties in the audit process for 2008; however, included in the Letter of Audit Related Communications to City Council is a summary of passed adjustments. These adjustments represent an adjustment necessary to correct the beginning balances in taxes receivable and; deferred revenue but rather than restating the beginning balance we recorded the adjustments in the 2008 as they were not material and did not impact the revenues and expenses. Please let me know if you have questions regarding the processor information contained in the report or letter. CITY OF GEM LAKE, MINNESOTA FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEAR ENDE❑ ❑ECEMBER 31, 2008 CITY OF GEM LAKE 4200.OTTER LAKE ROAD GEM LAKE, MINNESOTA 55110 CITY OF GEM LAKE, MINNESOTA TABLE OF CONTENTS YEAR ENDED ❑ECEMBER 3i, 2008 I. FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT BASIC FINANCIAL STATEMENTS STATEMENT OF NET ASSETS STATEMENT OF ACTIVITIES BALANCE SHEET - GOVERNMENTAL FUNDS RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT ❑F NET ASSETS GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES. IN FUND BALANCE - GOVERNMENTAL FUNDS. 1 3 7 8 RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES - GOVERNMENTAL FUNDS 10 STATEMENT OF NET ASSETS - PROPRIETARY FUNDS 11 STATEMENT OF REVENUES, EXPENSES. AND CHANGES IN NET ASSETS -- PROPRIETARY FUNDS 12 STATEMENT OF CASH FLOWS- PROPRIETARY FUNDS 13 NOTES TO BASIC FINANCIAL STATEMENTS 14 REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND 27 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 28 COMBINING FUND FINANCIAL. STATEMENTS NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET 29 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 30 CITY OF GEM LAKE, MINNESOTA TABLE OF CONTENTS (CONTINUED) YEAR ENDED DECEMBER 31, 2008 II. OTHER REQUIRED REPORTS. REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AN❑ ON COMPLIANCE AND OTHER MATTERS BASE❑ ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 31 REPORT ON MINNESOTA LEGAL COMPLIANCE 33 SCHEDULE OF FINDINGS AND RESPONSES 34 1. FINANCIAL SECTION Lars•nA11eni LLP CPAs, Consultants & Advisors •www,larsonallen:com INDEPENDENT AUDITORS' REPORT Honorable Mayor Members of the City Council and Citizens City of Gem Lake Gem Lake, Minnesota. We have audited the accompanying financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City of Gem Lake, Minnesota as of and for the year ended December 31, 2008,.which collectively comprise the City's basic financial statements as fisted in the table of contents. These financial statements are the responsibility of the. City's 'management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year partial comparative information has been derived from the. City's 2007 financial statements and, in our report dated August 29, 2008, we expressed unqualified opinions on the respective financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Gem Lake, Minnesota as of December 31, 2008, and the respective changes in financial position and cash flows, where applicable; thereof for the year then ended in conformity with U.S. generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued .a report dated April 24, 2009 on our consideration of the City of .Gem Lake, Minnesota's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. {t} LarsonAlien i,LP is a member of Nexia International; a worldwide network orindependent accounting and consulting firms. IN'TERNATIQNAl_ Honorable Mayor Members of the City Council and Citizens City of Gem Lake The budgetary comparison information as listed in the table of contents is not a required part of the basic financial statements but supplementary information required by U.S. generally accepted accounting principles. We have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation of the required. supplementary information. However, we did not audit the information and express no opinion on it. The City of Gern Lake has not presented the managements discussion and analysis that the U.S. generally accepted accounting principles have determined is necessary to supplement, although not required to be part of, the basic financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying supplementary information, made up of the combining fund financial statements listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in our audit of the. basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Minneapolis, Minnesota April 24, 2009 L..14P LarsonAllen LLP (2) BASIC FINANCIAL STATEMENTS CITY OF OEM LAKE, MINNESOTA STATEMENT OF NET ASSETS DECEMBER 31, 2008. (WITH COMPARATIVE DATA. AS OF DECEMBER 31, 2007) 2008 2007 Governmental Business -Type Activities Activities ASSETS Total Governmental Business -Type Activities Activities Cash and Investments $ 672,152 $ 177,201 $ 849,353 $ 61.0,044 $ 126,370 Taxes Receivable 9,123 9,123 24,788 Special Assessments Receivable 533,208 482. 533,690 555,722 1,723 Accounts Receivable 7,945 14,933 22,878 6,880: 16,128 Accrued interest 4,131 1,166 5,297 5,273 3,911 Prepaid Expenses 396 7,364 7,760 396 1,437 Unamortixed Bond Issue Costs 34,877 34,877 37,704 Capital Assets: Capital Assets Not Being Depreciated - - - 814,132 - Capital Assets Being. Depreciated 1,611,680 570,775. 2,182,455 701,032 .570,775 Accumulated Depreciation (201,607) (50,558) (252,165) (149,976) (39,142) Total Assets 2,671,905 721,363 3,393,268 2,605,995 681,202 LIABILITIES Vouchers and Accounts Payable 27,149 104 27,253 47,077 Accrued Interest Payable 26,213 26,213 30,818 Long Term Liabilities:. Amounts Due Within One Year 89,156 89,156 72,207 Amounts. Due in More than One Year 1.,425;81.7 1,425,817 1,513,200. Total Liabilities 1,568,335 104 1,568,439 1,663,302 48 48 NET ASSETS Invested in Capital Assets, Net of Related Debt (104,900) 520,217 415,317 (220,219) 531,633 Restricted for Debt Service 881,714 - 881,714 891,602 Unrestricted326,756 201,042. 527,798 271,310 149,521 Tatar Net Assets $. 1,103,570 $ 721,259 $ 1,824,829 $ 942,693 $ 681,154 See accompanying Notes to Basic Financial Statements. (3) CITY OF GEM LAKE, MINNESOTA STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2008 (WITH COMPARATIVE DATA FOR THE YEAR ENDED DECEMBER 31, 2007) 2006 '2007 Program Revenues Net (Expense) Revenue and Net (Expense) Revenue and Changes in Net•Assels • . Changes in Net Assets Fees, Total Charges, Operating CapilaI Grants 6us9/ass- Total Business. Flees: and Grants and .and Gotiemrilenla Type Govemmenlal Typo FUNC11ONSIPROGRAMS .Expenses Other Contributions Contributions IAd[vale s Activities Total 'Activities Activities GOVERNMENTAL ACTIVITIES General Government 5 1.1.3,862' $ 25,244 .$ 14,611 8 $ {72,007) $ - 5 {72,007).4 5 (85,223) 8 PuLlic•Safety 92,890 .(92,890) - (92,890) (85,932) Pubfi0 Works 69,166 16.506 71,418 20,760 - 20;760 (40,414) Conservat do and Development 40060 - - - (4U,960). (40.960) {25,695) (nterest.and Fiscal Charges 69 369; - - {69,369) - .(69,369) {53,165) Total Govemmenial Activities 384,247 43,752 14,611. 71,478. .{254,466). - {254,466} (290,429) BUSINESS -TYPE ACTIVITIES Sewer 38,932 50,706 11,774 11.774 - {11532) Total Primary.Government $ 423,179 $ 94,458 .$ 144611 5 7.1,418 (254:466) 11;774 •{242,592) {290;429) (11.532) GENERAL REVENUES Taxes' Property Taxes, Levied for General Purposes• 37Q,645 - 370,645 396;724 - Properly Taxes,.Levied.for Debt Service. . 52,441' 52,441 Grants and Contributions Not. Restiicled for a Particular. Purpose 2,808 - 2,806 - Investment Earnings 14,443 3,331 17,774. 28,422 7.264 Miscel€eneous 6. - 6 .324 - Transfers (25;000). 25,000 - (5,000) 5:000 Total General Revenues 4154343 28,331 443,674 422,470 •12,264 CHANGE IN NET ASSETS 160,87.7. 40,105 200,982 132,041 732 • Net Assets:- Beginning o1.Year 942,693 681,154 1,623;647 81a,652 680 422. NET ASSETS - END OF YEAR $ 1,103,570. $ 721:259 $ 1,624,629 $ 942:693 $. 661.154 See accompanying Notes to Basic Financial Statements. (4) CITY OF GEM LAKE, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2008 (WITH COMPARATIVE. DATA AS OF DECEMBER 31, 2007) ASSETS Cash and Investments Taxes Receivable Special Assessments Receivable. Accounts Receivable Accrued Interest Receivable Due from Other Funds Prepaid Expenses General Fund $ 263,501 8,727 547 7,945 1,476 27,098 396 Total Assets $: 309,690. LIABILITIES AND FUND BALANCES LIABILITIES Vouchers and Accounts Payable Due to Other Funds Deferred Revenue Total Liabilities FUND BALANCES Reserved for Prepaid Expenses Unreserved, Undesignated Reported In: General. Fund Special Revenue. Funds Debt Service Funds Capital Projects Funds Total Fund Balances 27,149 9,890 37,039 396 272,255 272,651 Total Liabilities and. Fund Balances $ 309,690 See accompanying Notes to Basic. Financial Statements. G.O. Improvement Bonds Series 2004A 135,940 363,207 845 $ 499,992 363,180 363,180 136;812 136,812 $ 499;992 G.O. Improvement Bonds Series 2006A $ 127,633 169,454 825 297,912. 169,454 169,454 128,458 128,458 297,912 G.O. Capital Improvement. Plan Bonds Series 2007A 108,923 396. 704 $ 110,023 887 887 109,136 109,136 $ 110,023 (5) 2008 City Hall Other Total Construction Governmental . Governmental 2007. Fund Funds Funds Totals 36,155 $ 672,152 $ 610,044 9,123 24,788 - 533,208 555,722 - 7,9445.. 6,880 281 4,131 5,273 - 27,098. - 396. 396 - $ 36,436 5. 1,254,053 $1,203,103 $ $ 27,149 $ 47,077 27,098 27,098 - 543,411 565.,476 27,098 - 597,6.58 612;553. 396 396 - 272,255 173,867 36,436 36,436 35,629 - 374,406 366,401 (27,098) - (27,098) 14,257 (27,098) 36,436 656,395 590,550 - $ 36;436 $ 1,254,053 $1,203,103 (6) CITY OF GEM LAKE, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS GOVERNMENTAL FUNDS DECEMBER 31, 2008 (WITH COMPARATIVE DATA AS OF DECEMBER 31, 2007) 2008 2007 TOTAL FUND BALANCES FOR. GOVERNMENTAL FUNDS $ 655,395 $ 590,550 Total net assets reported for governmental activities in the statement of net. assets is 'different because: Capital assets used in governmentalactivities are not financial resources and, therefore, are no reported in the funds. These capital assets consist of: Buildings • $ 898,708 Office Equipment 13,190 .Infrastructure 69978Z: Accumulated Depreciation (201,607). 1.,410,073 1,365,188 Someof the City's property taxes.and special assessments will'be collected after year-end; but:are not.available: soon enough to pay for the current period's expenditures and, therefore; are reported. as deferred revenue iri.the governmental funds, 543,411 565,476: Bond issue.costs are reported as expenditures in the. governmental funds and are shown net of accumulated amortisation on the statement of net assets.. .34,877 37,704 Some liabilities: are not due and payable in the.current period and, therefore, are not reported as fund liabilities: Balances at year-end are: General Obligation Bonds Payable (1,533,986) Unamortized Bond ❑iscounts 19.,013 Accrued Interest on Long-Term.Debt •(26,213) (1,541,186). (1,616,225) TOTAL NET ASSETS OF GOVERNMENTAL ACTIVITIES See accompanying Notes. to Basic Financial Statements. $ 1,103,570 $ 942,693 (7) CITY OF GEM LAKE, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2008 (WITH COMPARATIVE DATA FOR THE YEAR ENDED DECEMBER 31, 2007) REVENUES Taxes Special Assessments Intergovernmental. Licenses and Permits Fines and Forfeits Public Charges for Services Miscellaneous: Interest Other Total Revenues EXPENDITURES Current: General Government Public Safety Public Works Conservation and Development Capital Outlay Debt Service' Principal Interest and. Fiscal Charges Total Expenditures EXCESS. OF REVENUES. OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Issuance of Bonds Bond Discount Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES Fund Balances - Beginning of Year FUND BALANCES - END OF YEAR General Fund $ 370,862 12,982 25,:108 2,255 3,761 1 0, 323 17;069 442,360 126,651 92;890 38,471 40,960 298,9.72 143,388 (45,000) (45,000) 98, 3.88 174,263 G.O. improvement Bonds Series 2004A $. 68,076 1,373 69,449 52,207 18,434 70,641 (1,192) (1,1192) 138,004 $ 272,651 $ 136,812 See. accompanying Notes to Basic Financial Statements. G.D. Improvement Bonds Series 2006A 25,192 706. 25,898 20,000 10;104 30,104 (4,206) (4,206) 132,664 $ 128,458 G.O. Capital. Improvement Plan Bonds Series 200.7A $ 52,44.1 1.798 54,239 40,836 40; 836 . 13,4.03. 13,403 95,733 109,136 (8) City Hall Other Total. Construction Governmental Governmental 2007 Fund Funds Funds Totals $ $ 423,303 398,967 93.,268 116,357 12,982 10,953 25,108 23,108 2,255 2,585. 3,761 9,907 (564) 807 14,443 28,422 17,069 324 (564) 807 592,189 590,623 60,791 60; 791 126,651 120,634 92,890 85,932 38,471 74,161 40,960 25,695 60,791 814,132 72,207 50,327 69,374 52,783 501;344 1; 223, 664. (61,355) 807 90,845 (633,041) 20,000 20,000 37,480 - - (45,000) (42,480) - - 850,000 - (9,716) 20,000 - (25,000) 835,284 (41,355) 807 65,845 202,243 14,257 35;629. 590; 5.50 388;307 $ (27,098) $ •36,436 . $ 656,395 $ 590,550. (9) CITY OF GEM LAKE, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE T❑ THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2008 (WITH COMPARATIVE DATA FOR THE YEAR ENDED DECEMBER 31, 2007) 2008 2007 NET CHANGE IN FUND BALANCES - TOTAL . GOVERNMENTAL FUNDS $ 65,845 $ 202,243 Amountsreported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, assets are capitalized and the cost is allocated over their estimated useful lives and reported as depreciation expense. This :is the amount by which capital outlays exceeded depreciation in the current period, Capital Outlays Deprecation Expense Delinquent'and deferred property taxes and special assessments receivable will be collected subsequent toyear-end, but are not available soon enough to pay for the current period's expendituresand, therefore, are deferred in the governmental funds. $96, 516 (51,631) 44,885 784,468 Deferred Revenue December 31, 2007.565,476 Deferred Revenue - December 31, 2008 543,411 (22,065) (64,331) The governmental funds report bond proceeds as financing sources, while repayment of bond: principal is reported as an expendiiture. In the statement of net assets, however; issuing debt increases long-term liabilities and does not affect the statement of activities and repayment of principal reduces the liability, Also, governmental funds report the effect of issuancecosts, premiums and discounts. when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Interest is recognized as anexpenditure in the governmental funds when itis due. Inthe statement of activities, however., interest expense is recognized as it accrues, regardless of when it is due. The net effectof these differences in the treatment of general obligation bonds andrelated items is es fotlows: Repayment of Band Principal 72,207 Change in Accrued Interest Payable 4,605 Amortization of Bond Issue• Costs (2,827) Amortization of Bond Discount _ (1,773) 72,212 (790,339) CHANGE IN NET ASSETS OF GOVERNMENTAL_ ACTIVITIES $ 160,877 $ 132,041 See accompanying Notes to Basic Financial Statements, (10) CITY ❑F GEM LAKE, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUND DECEMBER 31, 2008 (WITH COMPARATIVE DATA AS ❑F DECEMBER 31, 2007) 2008 Sewer Utility ASSETS 2007 Totals Cash.and Cash Equivalents $ 177,201 $ 126,370 Customer Accounts Receivable 14,933 16,128 Accrued Interest 1,166 3,911 Special Assessments Receivable 482. 1,723 Prepaid Expenses 7,364 1,437 Total Current Assets 201,146 149,569 Capital Assets: Utility Plant in Service 570,775 570,775 Accumulated Depreciation (50,558) (39,142) Net Capital Assets 520,217 531,633. Total Assets 721,363 681,202 Accounts Payable LIABILITIES NET ASSETS Invested in Capital Assets, Net of Related ❑ebt Unrestricted 104 48 520,217 531,633 201,042 149,521 Total Net Assets $ 721,259 $ 681,154 See accompanying Notes to Basic Financial Statements. CITY OF GEM LAKE, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUND YEAR ENDED DECEMBER 31, 2008 (WITH COMPARATIVE DATA FOR. THE YEAR ENDED DECEMBER 31, 2007) OPERATING REVENUES Public Charges for Services 2008 Sewer Utility 2007 Totals. 50,706 $ 52,172 OPERATING EXPENSES Operating Expenses 27,516 52,288 Depreciation 11,416 11,416 Total Operating Expenses 38,932: 63,704. OPERATING INCOME (LOSS) NONOPERATING REVENUES Interest Revenue INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS CAPITAL CONTRIBUTIONS AND TRANSFERS Transfers In 11,774 (11,532) 3,331 7,264 15,105 (4,268) 25,000 5,000 CHANGE IN NET ASSETS 40,105 732 Net Assets - Beginning of Year 681,154 680,422 NET ASSETS - END OF YEAR $ 721,259 $ 681,154 See accompanying Notes to Basic Financial Statements. (12) CITY OF GEM LAKE; MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUND YEAR ENDED DECEMBER 31., 2008 (WITH COMPARATIVE DATA FOR THE YEAR.ENDED DECEMBER 31, 2007) 2008. Sewer Utility 2007 Totals CASH FLOWS FROM OPERATING ACTIVITIES Cash Received. from .Utility Customers $ 53,142 $ 46,702 Cash Payments to Suppliers for Goods and Services (33,387) (52,992) Net Cash Provided. (Used) by Operating Activities 19,755 (6,290) CASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers In 6,076 6,641 25,000 5,000 NET INCREASE IN CASH AND CASH EQUIVALENTS 50,831 5,351 Cash and Cash Equivalents- Beginning of Year 126,370 121,019 CASH AND CASH EQUIVALENTS - END OF YEAR $ 177,201 $ 126,370 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED. (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ 11,774 $ (11,532) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 11,416 11,416 Changes in Assets and Liabilities: Customer Accounts Receivable 1,195 (3,747) Special Assessments Receivable 1,241 (1,723) Prepaid Expenses (5,927) (278) Accounts Payable 56 (426) Net Cash Provided (Used) by Operating Activities $. 19,755 $ (6,290) See .accompanying Notes to Basic Financial Statements.. (13) CITY G.F GEM LAKE, MINNESDTA NOTES TO BASIC FINANCIAL STATEMENTS ©ECEMBER:31, 2008 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City have been prepared in conformity with U.S. generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB) The following is a summary of the significant accounting policies. A. Financial Reporting Entity As required by U.S. generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Gem Lake and its component units. A component unit is a legally separate entity for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component include whether or not the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. Based.on these criteria, there are.no organizations considered`to be component units of the City, B. Basic Financial Statements 1. Government -Wide Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) display information about the primary government and its component units. These statements include the financial activities of the overall City government. Eliminations have been made to minimize the double -counting of internal activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to. a significant extent on fees and charges to external parties for support. In the government -wide statement of net assets, both the governmental and business -type activities columns: (a) are presented on a consolidated basis by column; and (b) are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The Ciity's net assets are reported in three parts: (1) invested in capital assets, net of related debt; (2) restricted net assets; and (3) unrestricted net assets. The City first utilizes restricted resources to finance qualifying activities. (14) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2008 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basic Financial Statements (Continued) 1. Government -Wide Statements (Continued) The statement of activities demonstrates the degree to which the direct expenses of each function of the City's governmental activities and different business -type activity are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Program revenues include: (1) fees, fines, and charges paid by the recipients of goods, services, or privileges provided. by a given function or activity; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity. Revenues that are not classified as program revenues, including all taxes, are. presented as general revenues. 2. Fund Financial Statements The fund financial statements provide information about the City's funds. Separate statements for each fund category, governmental and proprietary, are presented. The emphasis of governmental and proprietary fund financial statements is on major individual governmental and enterprise funds, with each displayed as separate columns in the fund financial statements. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. The City reports the following major governmental funds: General Fund — The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. G.O. Improvement . Bonds Series 2004A — The G.G. Improvement Bonds Series 2004A Fund accounts for all debt service activity related to the 2004A bond. G.O. improvement Bonds Series 2006A — The G.O. Improvement Bonds Series 2006A Fund accounts for all debt service activity related to the 2006A. bond. G.O. Capital Improvement Plan Bonds Series 2007A — The G.O. Capital Improvement Plan Bonds Series 2007A Fund accounts for all debt service. activity related to the 2007A bond. City Hall Construction Fund — The City Hall Construction Fund accounts for all activity related to the construction of the City's new city hall. (15) CiTY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS ❑ECEMBER 31, 2008 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basic Financial Statements (Continued). 2. Fund Financial Statements (Continued) The City reports the following major proprietary fund: Sewer Fund — The sewer fund -accounts for customer sewer service charges that are used to finance sewer operating expenses. C. Measurement Focus and Basis of Accounting The government -wide, proprietary fund, and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the tinting of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Private -sector standards of accounting and financial reporting issued on or before November 30, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private -sector guidance for their business - type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private -sector guidance. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues. are recognized as soon as they are both measurable and available. The City considers all revenues to be available if they are collected within 60 days after the end of the. current period. Property and other taxes, licenses, and interest are all considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, compensated absences, and claims and judgments, which are recognized as expenditures to the extent that they have matured. Proceeds of general long-term debt and acquisitions. under capital leases are reported as other financing sources. 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 revenue of the City's enterprise funds are charges to. customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues arid expenses not meeting this definition are reported as nonoperating revenues and expenses. (16) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2008 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Budgets Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. An annual appropriated budget is adopted for the General Fund. Budgeted expenditure appropriations lapse at year-end. E. Cash and Investments. Cash and investment balances from all funds are pooled and invested to the extent available in investments authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund in the governmental fund financial statements, and an interfund payable in the fund with the deficit, until adequate resources are received. These interfund. payables are eliminated for statement of net assets presentation. Investments are stated at fair value as of the balance sheet date. Interest earnings are accrued at the balance sheet date. For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Al! of the cash and investments allocated to the proprietary fund types have original maturities of 90 days or less. Therefore, the entire balance in such fund types is considered cash equivalents. F. Prepaid Expenses Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepayments. Prepaid items are reported using the consumption method and recorded as an expense or expenditure at the time of consumption. That portion of the relevant funds' balances equal to rnaterial prepaid items has been reserved. G. Property Tax Credits. Property taxes on homestead property (as defined by State Statutes) are partially reduced by property tax credits. These credits are paid to the City by the State in lieu of taxes levied against homestead property. The State remits these credits through installments each year. These credits are recognized as revenue by the City at the time of collection. (17) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2008 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Property Tax Revenue Recognition The City. Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the. City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are. payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 15 arid December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. Within the governmental fund financial statements, the City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and the following January are recognized as revenue for the current year. Taxes and credits not received at the year-end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred revenue because it is not available to finance current expenditures. Deferred revenue in governmental activities is susceptible to full accrual on the government -wide statements. The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per Minnesota Statute 473F. This statute provides a means of spreading a portion of the taxable valuation of commercial/industrial real property to various taxing authorities within the defined metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth since 1971. Property taxes paid to the City through this formula for 2008 totaled $10,771. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue. I. Special Assessment Revenue Recognition Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with state statutes. These assessments are collectible by the City over a tern of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. (18) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2008 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Special Assessment Revenue Recognition (Continued) Within the fund financial statements, the revenue frorn special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the County and remitted by December 31. (remitted to the City the following January) and are also recognized as revenue for the. current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funding are completely offset by deferred revenues. Deferred revenue in governmental activities is susceptible to full accrual on the government -wide statements. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City's City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by the City's City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it. is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. J. Capital. Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, sidewalks, street lights, and similar items) are reported in the applicable. governmental or business -type activities columns in the government -wide financial statements. Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are. constructed. The government reports infrastructure assets on a network and subsystem basis. in the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the government chose to include all such items regardless of their acquisition date or amount. (19) CITY OF GENT LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2008 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Capital Assets (Continued) Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accumulated depreciation reflected in the. Statement of Net Assets. Since surplus assets are sold for an immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into consideration for depreciation purposes. Capital assets not being depreciated include construction in progress. Depreciation Estimated Assets Method Useful Life Buildings Straight -Line 40`Years Office Equipment Straight -Line 5 - 10 Years Utility Systems Straight -Line 20 - 50. Years Infrastructure Straight -Line 20 - 50 Years K. Long -Term Obligations In the entity -wide financial statements, long-term debt and other long-term obligations. are reported as liabilities in the applicable governmental activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bond issue costs, if material, are reported as prepaid items and amortized over the term of the related debt using the straight-line method. In the governmental fund financial statements, bond premiums and discounts, as well as bond issue costs are recognized during the current period. The face amount of the debt issue is reported as on other financing source. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issue costs are reported as debt service expenditures. L. Fund Balance In the governmental fund financial statements, reservations of fund balance represent those portions of fund balance not appropriable for expenditure or legally restricted by outside parties for use for a specific purpose. Designated fund balances represent tentative plans for future use of financial resources that are subject to change. (20) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2008 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Interfund Transactions Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/ expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. All Interfund transactions are eliminated except for activity between governmental activities and business -type activities for presentation in the entity -wide statements of net assets and statements of activities. NOTE 2 DEPOSITS AND INVESTMENTS A. Deposits The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the statement of net assets and the balance sheet as "Cash and Investments." In accordance with Minnesota Statutes the City maintains deposits at financial institutions which are authorized by the City Council. Custodial. Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City does not have a deposit policy for custodial credit risk and follows Minnesota Statutes for deposits. Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or corporate surety bonds. Authorized collateral include: U.S. government treasury bills, notes, or bonds; issues of a U.S. government agency, general obligations of a state or local government rated "A" or better; revenue obligations of a state or local government rated "AA" or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank, and time deposits insured by a federal agency. Minnesota Statutes require securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution not owned or controlled by the depository. The carrying value and bank balance of the City's deposits in banks at December 31, 2008 is $783,057 and $783,248, respectively, and were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes. (21) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2008 NOTE 2 DEPOSITS AND INVESTMENTS. (CONTINUED) B. Investments The City may also invest idle funds as authorized by Minnesota Statuteses follows: • Direct obligations or obligations guaranteed by the United States or its agencies. • Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency and all of the investments have a finial maturity of thirteen months or less. • General obligations rated "A" or better; revenue obligations rated "AA" or better. • General obligations of the Minnesota Housing Finance Agency rate "A" or better. • Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. • Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by a least two nationally recognized rating agencies, and maturing in 270 days or less. • Guaranteed investment contracts guaranteed by United States commercial banks or domestic branches of foreign banks or United States insurance companies if similar debt obligations of the issuer or the collateral pledged by the issuer is in the top two rating categories. • repurchase or reverse purchase agreement and securities lending agreements financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10 000 000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker -dealers. At. December 31, 2008, the City's investment balance consisted of $66,297 held in a Wells Fargo Advantage Prime Investment Money Market Mutual Fund. Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The City's investment policy doesn't specifically address custodial credit risk. Interest Rate. Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City's investment policy doesn't specifically address interest rate risk. The Wells Fargo Advantage Prime Investment Money Market Mutual Fund is fully liquid and does not have a maturity date. (22) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2008 NOTE 2 ❑EPOSITS AND INVESTMENTS (CONTINUED) B. investments (Continued) Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City's investment policy doesn't specifically address credit risk. The Wells Fargo Advantage. Prime Investment Money Market Mutual Fund is not rated. Concentration of Credit Risk The City places no limit on the amount that the City may invest in any one issuer. NOTE 3 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2008 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental. Activities: Capital Assets Not Being Depreciated: Construction in Progress $ 814,132 $ $ (814,132) $ Capital Assets Being Depreciated: Buildings - 898;708 898,708 Office Equipment 1,250. 11,940 - 13.190 Infrastructure: 699,782 - . 699,782 Total Capital Assets Being Depreciated 701,032 910;648 - 1,611,680 Total Capita! Assets 1,515,164. 910,648 (814,132) 1,6.11,680 Accumulated Depreciation: Buildings - (19;659) (19,659) Office Equipment (219) (1,277) (1,496) Infrastructure. (149,757) (30,695) - (180,452) Total Accumulated Depreciation (149,976) (51,631) (201,607) Net Capital Assets - Capita! Activities $ 1:,365,188 $ 859,017 $ (814,132) $1,410,073 Depreciation expense was charged to the governmental functions as follows: General Government Public Works Total Depreciation - Governmental Activities $ 20,936 30,695 $ 51,631 (23) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2008 NOTE 3 CAPITAL ASSETS (CONTINUED). Beginning Ending Balance Increases Decreases. Balance. Sewer Utility Capital Assets Being Depreciated: Infrastructure $ 570,775 $ - $ $ 570,775 Less: Accumulated Depreciation (39,142) (11,416) - (50,558) Net Capital Assets.:- Sewer Utility $ 531,633 $ (11,416) $ - $ 520,217 NOTE 4 CITY INDEBTEDNESS City indebtedness at December 31, 2008 is composed of the following: Final Issue Maturity Interest original Date Date Rate Issue Balance 12/31/08 Governmental Activities: General Obligation Bands; 2004A Improvement Bonds 11/03/2004 02l0112016 3.70% $ 586,000 $ 458,986 2006A Improvement Bonds 08/23/2006 02/01/2017 4,30% 245,000 225,000 2007A Capital Improvement Bonds 06/20/2007 02/01/2028 4.00-4,50% 850,000 850,000 Total Long -Term Debt 1,681,000 1,$33,986 Unamortized Bond Discount (33;460) (19,01.3) Total $ 1:6:47,540 $ 1,514,973 The following is a schedule of changes in City :indebtedness for the year ended December 31.,.2008: Balance Balance Due Within 12/31/07 Additions Reductions 12/31/08 One Year Long -Term Debt Governmental Activities General Obligation Bonds $ 1,606,193 $ $ 72,207 $ 1,533,986 $ 89;156 Unamortized Bond Discount (20,786) (1,773) (19,013) Total Long -Term Debt $ 1,585,407 $ - $ 70,434 $ 1,514,973 $ 89,156 MI long-term bonded indebtedness outstanding at December 31, 2008 is backed by the full faith and credit of the City, including special assessment bond issues. For the governmental activities, compensated absences` are generally liquidated by the general fund. (24) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2008 NOTE 4 CITY INDEBTEDNESS (CONTINUED) Minimum annual principal and interest payments required to retire long-term debt are as follows: Year Ending December 31, Principal Interest. Total 2009 $ 89,156 $ 61,686 $ 150,842 2010 91.,179 58,203 149,382 2011.98,276 54,539 152,815 2012 100,452 50,688 151,140 2013 102,71.0 46,755 149,465 2014-2018 422,213 175,158 597,371 2019-2023 285,000 107,541 392,541 2024-2028 345,000.. 3.9,616 384,616 Total $ 1,533,986 $ 594,186 $ 2,128,172 Description and Restrictions of Long -Terra Debt. General Obligation Bonds — The bonds were issued for improvements or projects which benefited the City as a whole and are, therefore, repaid from ad valorem levies. NOTE 5 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY A. Excess of Expenditures Over Appropriations Actual expenditures exceeded budgets during•2008 as follows:. General. Fund: Public Safety Final Budget Actual Excess $ 87,926 $ 92,890 $ (4,964) These excess expenditures were funded by available fund balance in the General Fund. B. Deficit Fund Balances The City has deficit fund balances at December 31, 2008 as follows: Fund Balance Deficit City Hall Construction Fund $ (27,098) These City intends to fund these deficits through future tax levies, transfers from other funds, and various other sources. (25) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2008 NOTE 6 INTERFUND TRANSFERS Individual fund transfers for fiscal year 2008 are as follows: Transfer Transfer In Out Governmental Activity: General Fund $ - $ 45,000 City Hail Construction Fund 20,000. Business -Type Activity:. Sewer Fund 25,00.0: 45,000 :$ 45,000, During 2008, the City made interfund transfers from the General Fund to the City Hall Construction fund to cover the deficit in the City Hall Construction Fund. A transfer was also made from the General Fund to the Sewer Fund for payment of loan provided by the Sewer Fund. NOTE 7 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City carries commercial insurance for all risks of Toss, including disability and employee health insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. (26) REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON INFORMATION CITY OF GEM LAKE, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31, 2008 REVENUES Taxes Intergovernmental Licenses and Permits Fines and Forfeits Public Charges for Services Miscellaneous: Interest Other Total Revenues EXPENDITURES General Government Public Safety Public Works Conservation and Development Total Expenditures EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers. Out NET CHANGE IN FUND BALANCE Fund Balance. - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original $ 395,355 10,313 18,700 4,000 4,236 3,175 435,779 183,213 87,926 52,500. 87,140 410,779. 25,00.0: (25, 000) See accompanying Notes to Required Supplerrrentarylnforniafion. (27) Final $ 395,355 10,313 18,700 4,000 4,236 3,175 435,779 183,213 87,926 52,500 87,140 410,779 25,000 (25,000) Actual Variance with Amounts Final Budget $ 370,862 12,982 25,108 2,255 3,761 10,323 17,069. 442,360 126,651 92,890 38,471 40,960 298,972 143,388 (45,000) $ (24,493) 2,669 6,408 2,255 (239) 6,087 13,894 6,581 56,562 (4,964) 14,029 46,180 111,807 118,388 (20,000) 98,388 $ 98,388 174,263 $ 272,651 CITY OF GEM LAKE, MINNESOTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2008 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY - BUDGET The General Fund budget is legally adopted on a basis consistent with U.S. generally accepted accounting principles. Actual expenditures did not exceed budgets during 2008. (28) COMBINING FUN❑ FINANCIAL STATEMENTS CITY DF GEM LAKE, MINNESOTA• COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUND DECEMB.ER 3'1; 2008. (WITH COMPARATIVE DATA AS OF DECEMBER 31,. 2007) ASSETS Cash and Investments Accrued Interest Receivable 2008 Special Revenue Parks and Playground Fund 2007 Totals $ 36,155 $ 34,363 281 1,266 Total Assets. $ 36,436 $ 35,629 FUND BALANCES Unreserved, Undesignated Fund Balance $ 36,436 $ 35,629 (29) CITY ❑F GEM LAKE, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUND YEAR ENDED ❑ECEMBER 31, 2008 (WITH COMPARATIVE DATA FOR THE YEAR ENDED DECEMBER 31, .2007). 2008 Special Revenue. Parks and Playground Fund 2007 Totals REVENUES Interest $ 807 $ 2,457 OTHER. FINANCING SOURCES (USES). Transfers Out - (42,480) NET CHANGE IN FUND BALANCES. 807 (40,023) Fund Balance Beginning of Year 35,629 75,652 FUND BALANCE - END OF YEAR $ 36,436 $ 35,629 (30) II. OTHER REQUIRED REPORTS Lars.nAllen CPAs, .Cousuitant:s & _Advisors www.iarsonalien.com REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of the City Council City of Gem Lake, Minnesota We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Gem Lake, Minnesota as of and for the year ended December 31, 2008, which collectively comprise the City's basic financial statements and have issued our report thereon dated April 24, 2009. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A control deficiency exists when thedesign or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City's ability to initiate, authorize, record, process, or report financial data reliably in accordance with U.S. generally accepted accounting principles such that there is more" than a remote likelihood that a misstatement of the City's financial statements that is more than inconsequential will not be prevented or detected by the City's internal control over financial. reporting. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the City's internal control. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and. accordingly, .would notnecessarily disclose all significant deficiencies that are also considered to be material weaknesses. We consider the deficiency described as item 2008-1 in the accompanying schedule of findings and responses to be a material weakness in internal control over financial reporting. al) LarsonAlIcn LLIf is a member of Nc'ia International; a worldwide network of independent accounting and consulting.fiinns: iNTrtt,NATIO,N A Honorable Mayor and Members of the City Council. City of Gem Lake. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts: However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion, The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the City Council, management, the Office of the State Auditor, and state and federal awarding agencies and is not intended to be and should not be used by anyone other than these specified parties. Minneapolis, Minnesota April 24, 2009 LarsonAllen LLP (32) Lars•nAlleri LLP CPAs, Consultants & Advisors www,larsonallert.com REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor, Members of the. City Council, and Citizens City of Gem Lake, Minnesota. We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Gem Lake, Minnesota, which collectively comprise the City's basic financial statements as of and for the year ended December 31, 2008, and have issued our report thereon dated April 24, 2009. We conducted our audit in accordance with U.S. generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the. State Auditor pursuant to Minn. Stat. §6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers seven main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous city provisions; and tax increment financing districts. Our study included all of the listed categories except for tax increment financing districts because the City has no tax increment financing districts. The results of our tests indicate that, with respect to the items tested, the City of Gem Lake, Minnesota complied with the material terms and conditions of applicable legal provisions, except as noted in the. schedule of findings as 2008-2. This report is intended solely for the information and use of management, the City Council, the Office of the State Auditor, and other state agencies, and is not intended to be and should not be used by anyone other than these specified parties. �I_P LarsonAilen LLP Minneapolis,. Minnesota April 24, 2009 {33) if LarsanAlllen LLP is.a member nf-Nekia lntematiiinsId, a worldwide network of independent. accounting and consulting Firms. INTERNATIONAL CITY OF GEM LAKE SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED ❑ECEMBER 31, 2008 Internal Control Over Financial Reporting 2008-1: Limited Segregation of Duties Condition: Due to the small size of the City's staff, there is by definition a lack of segregation of the accounting functions that is necessary to ensure adequate internal accounting control. While we realize this scenario is common for small entities, we are required to report this issue and to advise that a concentration of duties and responsibilities in a limited number of individuals is not desirable from an. internal control perspective. Criteria: Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Effect: The City is unable to maintain segregation of incompatible duties. Cause: The condition is due to a limited number of personnel involved in receipt and disbursement processes. Recommendation: Controls should be reviewed periodically and consideration given to improving the segregation of duties. In making this review, it is important to consider the benefit derived as weighed against the cost of the improvements.. Minnesota Legal Compliance Finding: 2008-02 Declarations of Payment Finding: Minnesota Statutes Section 471.391 Subd 1 and 2 requires that the City document that the declaration of payment requirements were met for any payment of non -payroll claims made by the City. The declaration of payment requirements can be met with a declaration printed on the backside of checks issued by the City in payment of claims. Management Response: The City has corrected this issue as of the completion of fieldwork. (34) Lars•nAllen LLP CPAs, Consultants & Advisors www.itirsona Ilen.corn Honorable Mayor and Members of the City Council City of Gem. Lake Gem Lake, Minnesota We have audited the financial statements of the governmental activities, thebusiness-type activities, each major. fund, and theaggregate remaining fund information of City of Gern Lake for the year ended December 31, 2008, and have issued ourreport thereon dated April 24, 2009. Professional standards require that we provide you with the following information related to our audit. Our Responsibility Under.U.S. Generally Accepted. Auditing. Standards and Go.ver►trnejit Airditing Standards As stated in our engagement letter dated January 7, 20.09,. our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are .fairly presented, in all material respects, in conformity with ll.S, generally accepted accounting .principles, Our audit.of the financial statements does not. relieve. you or management of your responsibilities As part of our audit, we considered the internal control of City of Gem Lake. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial :.statements are free of material misstatement,we performed tests of City of Gem Lake's compliance with certain provisions of laws,regulations, contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance withsuch provisions. 1. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material rnisstatcrnent. 2. We are responsible for communicating significant mattersrelated to theaudit that are, in our professional. judgment, .relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Other Information in Documents; Containing Audited Financial Statements Our audit opinion, the audited financialstatements, and the notes to financial statements should only be used in. their entirety. Inclusion of the audited .financialstatements in a client prepared document, such as an annual report, should be done only with our prior approvaland review of the document. Our responsibility for other. information in documents containing the entity's financial statements and report does not extend beyond the financial information identified in the report. We do not have an obligation to perform any procedures to. corroborate otherinformation contained in such documents. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in our meeting about planning matters on March 23, 2009. .. •i► LarsonAlleri I.LP is a member of International, a worldwidet' network oindepcndent.accounting and consuiiing firms. INTERNATIONAL Honorable Mayor and Members of the City CounciI City of Gem Lake Page 2 Significant Audit Findings. Qualitative Aspects ofAccounting Practices Management. is .responsible .for the selection • and use. of appropriate accounting policies. The: significant accounting policies used by City of Gem Lake. are described in Note 1 to the financial statements, Na new .accounting policies were, adopted and the application..ofexisting policies was not changed during 2008: We .noted no transactions. entered into by the City. of Gem Lake during the year for .whick there is a lack of authoritative guidance or consensus. There are no significant transactions that have •been recognized in the financial statements in a different period than. when the transaction occurred. Accounting estimates are.. an integral part of the financial statements prepared by management. and are based on management's knowledge and experience about past and current eventsand assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and: because of thepossibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Estimated useful lives of depreciable capital assets - Management's estimate of useful lives for depreciable assets is based on guidance recoinmended by authoritative accounting literature and past experiences. The useful life of a depreciable asset determines the amount of depreciation that. will be recorded in any given reporting period as wellas the amount of accumulateddepreciation that is reported at the end of a reporting period. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and:. Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to theappropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Disagreements with Management For :purposesof this letter, professional standards define a disagreement with management as a financial. accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are includedin the management representation letter dated April 24, 2009. Honorable Mayor and Members of the City Council City of Gem Lake Page 3 Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditingand accounting matters, similar to obtaining. a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. Toour knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles . and auditing standards, with management each year priorto retention as the City's auditors. However, these discussions occurred in the normal. course of our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of the management, the City Counciland management of the. City of Gem Lake and is not intended tobe and should not .be used by anyone other than these .specified parties. LarsonAllen LLP Minneapolis, Minnesota April 24, 2009 CITY OF GEM LAKE SUMMARY OF PASSED ADJUSTMENTS DECEMBER 31, 2908 Account Description ❑R CR FUND LEVEL FINANCIAL STATEMENTS 'I General Fund - Net Assets $ 2,170.00 General Fund - Revenue. $ 2:,170.00 G:O. improvement Bonds 2007A - Net Assets $ 296.00 GO. Irnprovement Bonds 2007A - Revenue $ 296.00 Pass on adjusting beginning current taxes receivable. GOVERNMENT -WIDE FINANCIAL STATEMENTS 2 Revenues $ 2;466.00 Net Assets $ 2,466.00 Pass on adjusting beginning current taxes receivable. I.arsonAilen LL13 is a tnenibcr.of Nexia international, a worldwide.network.of independent accounting and consulting Gams. INrr:RtiATR)NAE_ Page 1 CITY ❑F GEM LAKE. CASH. AND INVESTMENT BALANCE STATEMENT As of 05/31/09 Fiscal Year: 2009 Name of Fund General Fund Parks and Playgrounds 2004 Debt Service Fund 2006 Debt Service Fund. 2007 Capital Improvement Bonds Street Improvement City Hall Construction Sewer Enterprise Fund Investment Trust Fund Premier Checking Premier CD's Wells Fargo Money Market Cash and Investments Balance Balance 05/01/2009 Receipts Disbursements 05/31/2009. $206,246.94 $2,634.50. $26,888.94. $181,992.50 $36,533.09 $0.00 $0.00 $36,533.09 $116,831..41 $0.00 $0.00 $11.6,831..41.. $111.,3.82.42 $0.00 $0.00 $111,382.42. $7.6,120,91 $0.00 $0.00 $76,120.91 $0.00 $0.00 $0.00 $0.00 (S27,098.25) $0.00 $0.00 ($27,098.25) $188,477.69 $4840.88' $3,804.12 $189,514.45 $1,454.53 $434.46 $0.00 $1,888.99 $709;948.74 $7,909.84 $30,693.06 $68.7,165.52 $377,102.21. $243,746.22 $66,317.09 $68.7,165.52 NOTE: Cashbalance in the Investment Trust Fund represents the interest received in April/May 2009. Interestwill be distributed to the various fundsquarterly based on average. gash balance. REVENUES. Property Taxes Current Property Taxes Fiscal Disparity Taxes City of Gem Lake GENERAL. FUND Budgeted. Statement of Revenues and Expenditures For the Five Months Ending May.31, 2009. Annual Year to Date Year to Date Budget Actual Variance 401,900 $ 13,183 Page 2 % Complete. 0.00 401,906.00 0.00 0.00 13,183.00 0.00 Licenses and Permits General Business Licenses 0 1,725.00 (1,725.00) 0.00 On -Sale Liquor License 5,100 2,200.00 2,900.00 43.14. Off -Sale Liquor Licenses 100 0.00 100.00 0.00 Other Permits 1,000. 0.00 1,000.00 0.00 Tobacco License 700 350.00 3.50.00 50.00 Charitable Gambling License 100 225.00 (125.00) 225.00. Contractor License 450 225.00 225.00 50.00 Building Permits 2,000 860.89 1,I39_11 43.04 Plwribing:Permits 1,500 64.00 1,436.00 4.27 Mechanical Permits 1,200 120.00 1,080.00. 1.0.00. Electrical Permits 1.,000. 205.00 795.00 20.50 Fire Marshall Jnspectiun 4,050 56.50 3,993.50 1.40. State. Permit Charge 100 32.76 67.24 32.76 Dog Licenses 500 110.00 390.00 22.00 Intergovernmental Revenues Local Government Aids 2,808 0.00 2,808.00 0.00 MVHC (Homestead Credit) 5,000 0.00 5,000.00 0.00 County Grants &Aids 0 14.01 (14.01) 0.00 Cable TV Franchise Fees 3,000 4,303.90 (1,303.90) 143.46 Police State Aid 4,170 3,892,00 278.00 93.33 Charges for Services Variance Fee500 0.00 50.0.00. 0.00 Plan Review 500 97.14 402.86 19.43 Sale of Supplies 25 0.00 25.00 0.00 Engineering Charges 500. 0.00 500.00 0.00 Charges for Legal Fees 500 0.00 500.00. 0.00 InvestmentAdinin Charge 575 288.76 286.24 50.22 Fines and Forfeits Fines. 2,000. 587.50 1,412.50 29.38 Miscellaneous. Interest Eamlugs 5,283 2,398.41 2,884.59 45.40 Charitable Gambling Contributi 3,000 1,367.00 1,633.00. 45.57 Miscellaneous 2,000 347.00 1,653.00 17.35 Insurance Policy Dividends 150 174.00 (24.00) 116.00 Facility Rental 1.8,570: 3,682.83 14,887.17 19.83 Total Revenues 48.1,470 23,326.70 458,143.30.. 4.84 City of Gem Lake GENERAL FUND Budgeted Statement of Revenues and Expenditures For the Five Months Ending May 31, 2009 Annual Year to Date Year to. Date Budget Actual Variance EXPENDITURES Page 3 % Complete City Council. Wages and Salaries 5,356 1,339.00 4,017.00 25,00 Employer Paid Insurance 410 (202.44.) 612.44 (49.38) Conference Registrations 1,375 790.00 585.00 57.45 Other insurance 200 0.00 200.00 0.00 Council Contingency. 18,475 0.00 18,475.00 0.00 Clerk Wages and Salaries 11,882 3,653.99 8,228.01 30.75 Office Supplies 2,500 3 L4.96 2,185.04 12.60. Postage 50 0.00 50.00 0.00 Administration 5,000:. 1,607.50 3,392.50 32..15. Conference Registrations 500 0.00 500.00. 0.00.. Mileage 300 0.00 300.00 0.00 Recording Secretary 2,000 547.50 1,452.50 27..38 Office Equip & Furnishings 3,000 0,00 3,000.00 0,00 Elections. Operating Supplies 200 0.00 200.00. 0.00 Miscellaneous 150 0.00 150.00 0.00 Printing and Binding 50 0.00 50.00 0.00 Financial Administration Auditing Services 7,600 7,600.00 0,0.0 .100,00 Financial Services 25,000 11,057.50 13,942.50 44.23 Computer Services 500 1,360.00 (860.00) 272.00 Legal Services Prosecution 7,000. 1,032.50 5,967..50. 14.75 Legal 25,000. 8,8.11.00 16,189.00 35.24 Legal ='Land Issues 10,000 505.00 9,495.00 5..05 General Government Office 1,000 1,1 12.29 (112.29) 111.23 Miscellaneous. 100 126.56 (26.56) 126,56 Internet Connection. 500 0.00 500.00 0,00 Web Site 5,000 250.00 4,750.00 5.00 Computer Services 1,500 0.00 1,500.00 0.00 Legal Notice Publication 3,000 2,285.23 714.77 76.17 Newsletter/Public Relations 3,5.00 1,343.42 2,156.58 38..38 General Liability Insurance 1,800 240.75 1,559.25 13.38 Vehicle Insurance 0 16,50 (16.50) 0,00 Public Officials Liablitliy 100 57.00 43.00 57,00 Recycling. Collection 4,500 1,763.31. 2,736.69 39.18 League of MN Cities 650 0.00 650.00 0.00 RCLLG 200 100.00 100.00 50.00 Subscriptions 25 0.00 25.00 0.00 Gambling Distributions 5,000 320.00 4,680.00. 6.40 Planning and Zoning Professionai Services 20,000 0.00 20,000.00 0.00 Engineering 0 2,307.42 (2,307.42) 0.00 Administration 10,000 578.00 9,422.00 5.78 Zoning Administration 2,200 0.00 2,200.00 0.00 NPDES Training 250 0.00 250.00 0.00 NPDES Education 250 0.00 250.00 0.00 NPDES Administration 2,000 0.00 2,000.00 0.00. Recording Secretary Comp Plan Update City of Gem Lake GENERAL FIJN17 Budgeted Statement of Revenues and Expenditures For the Five Months Ending May 31, 2009 Page 4 Annual Year to Date Year to Date Budget Actual Variance % Complete 1,800 150.00 1,650.00 8.33 25,000 0.00 .25,000.00 0.00 Heritage Hall. Operating.. Supplies 2,000 320.02. 1.,679.98. 16.0.0. Sales Taxe. 0 9.24 (9.24) 0:00 Professional Services 8,000 1,562.96 6,437.04 19.54 Contract Services 1,000 0.00 1,000.00 0.00 Telephone 1,500 516.67 983.33 34.44 Propertylnsurance 750 138.75 6I.1.25 18.50 Electric Service 3,600 999.04 2,600.96 27.75. Gas Service 8,000 865.27 7,134.73 10,82 Water/Sewer Utilities 400 300.97 99.03 75.24 Repairs & Maint - Contractual 500. 7.05..00 (205.00) 14I.00. Reparis & Maint - Building 1,000 406:00 594.00 40,60 Buildings & Structures 3,800 0.00 3,800.00 0.00 Furniture & Office Equipment 600 0.00 600.00 0.00 Other Equipment 8,000 0.00 8,000.00 0.00 Police Regular Law Enforcement 79,692.: 33,241.15 46,450.85 41.71 Special Law Enforcement 100. 0.00 100.00 0.00 Dispatch Costs 2,466 822.00 1,644.00 33.33 Administration 700 0.00 700.00. 0.00 Miscellaneous 125 0.00 125.00 0.00 Aire Fire. Services. 14,109 5,878.75 8,230.25 41.67 Fire Marshall Service 3,730 1,554.20 2,I75.80; 41.67 Animal Control Animal Removal 500 0.00 500.00 0.00 Animal Enforcement 175 .55.74 119.26 31.85 Building Inpsection, Building Inspections 5,000 2,490.00 2,510.00 49.80 Building Secretary 1,500 143.00 1,357.00 9.53 Code Enforcement 1,000 0.00 1,000.00 0.00 Computer. Services 1,500 0.00 1,500.00 0.00 Road Maintenance Gravel 1,500 0.00. 1,500.00 0.00 Signs,Sign Repair Materials 700 0,00 700.00 0.00 Engineering. 8,000 448,42 7,551.58 5.61 NPDES Administration 12,500 0.00 12,500.00 0.00 Street Lights 1,200 335.75 864.25 27.98 ROW .Maintenance. 12,000 0.00 12,000.00 0.00 Street Repairs 8,800 330.84 8,469.16 3.76 Dues & Subscriptons. 50 42.19 7.81 84.38 Ice and Snow Removal Salt and Sand. 5,800 2,754.00 3,046.00 47.48 Sales. Tax 250 179.01 70.99 71,60 Repairs & Maint -. Contractual 0 1,012.50 (1,012.50) 0.00 Snow Plowing 11,000 5,115.00 5,885.00 46.50 Other Financing Uses Operating Transfers OUT 55,000 0.00 55.,000.00. 0.00 Total Expenditures City of Gem Lake GENERAL FUND Budgeted Statement of Revenues and Expenditures For the Five Months: Ending May 31, 2009. Annual Budget 481,470 Year to Date Actual 109,293..E+6. Excess Rev Over. (Under) Exp $ 0 $ (85,966.76) Page 5 Year to Date Variance. % Complete. 372,176.54 22.70 85,966.76 0.00 REVENUES. Park Dedication Fees Interest Earnings' Total Revenues EXPENDITURES City of Gem Lake PARKS AND PLAYGROUNDS FUND Budgeted Statement of Revenues and Expenditures For the Five Months Ending May 31, 2009 Year to Date Year to Date Year to Date Budget Actual Variance 2,000 $ 0.00 (2,000.00) 223 377.90 154.90 Page 6 % Complete 0.00 169.46 2,223 377.90 (1,845.10) 17.00. Total Expenditures 0 0.00 0.00 0.0D Excess Rev Over (Under) Exp $ 2,223 $ 377.90 (1,845.10) 17.00 REVENUES Current. Special Assessments Interest Earnings Total Revenues EXPENDITURES City af. Gem Lake 2004 DEBT SERVICE FUND Budgeted StateMent of Revenues and Expenditures For the Five Months Ending May 31., 2009 Year to Date. Year to Date Year to Date Budget Actual Variance 0 $. 14,988.95 14,988.95 638 1,224.05 586.05 • Page:7 % Complete 0.00 191,86 638 16;213.00 15,575.00 2,541:22 Principal 26,830 26;830.00 0.00 100.00 Interest 8,491 8,491.17 0.17 100.00 Fiscal. Agent Fees 50 0.00 (50.00) 0.00 Total Expenditures 35,371 35,321,17 (49.83) 99.86 Excess Rev Over (Under) Exp $ (34,733) $ (19,108.17) 15,624.83 55.01 REVENUES Current Special Assessments Interest Earnings Total Revenues EXPENDITURES City of Gem Lake 2006 DEBT SERVICE FUND Budgeted Statement ofRevenues and Expenditures For the Five Months Ending May 31, 2009 Year to Date Year to Date Year to Date. Budget Actual Variance 0 $ 7;399:44 Page 8 % Complete 7,390.44 0r00 642 1,197.28 555.28 186,49 642 8,587.72 7,945.72 1,337.65 Principal 20,000 20,009..00 0.00 100,00 Interest 4,83.8. 4,837.50 (0.50) 99.99 Fiscal .Agent Fees 50 0.00 (50.00) 0.00 Total Expenditures 24,888 24,837.50 (50.50), 99.80 Excess Rev..Over (Under) Exp $ •.(24,246) $ (1.6,249:78) 7,996.22 67.02 City of Gem Lake. 2007 DEIST SERVICE FUND Budgeted. Statement of Revenues and Expenditures For the Five Months Ending May31, 2009 Page 9 Year to. Date Year to Date Year to Date Budget Actual Variance % Complete REVENUES Interest Earnings $ 270 $ 874.50 604.50 323.89 Total Revenues 270 874.50 .604.50 323.89 EXPENDITURES Principal 15,000 15,000.00 0.00 100.00 Interest 18,128 18,127.50 (0.50) 100.00 Fiscal Agent Fees 450 550.00 100.00 122.22. TotalExpenditures 33,578 33,677.50 99.50 100.30 Excess Rev Over (Under) Fxp $ (33,308) $ (32,803.00) 505.00 98.48 City of Gem Lake CITY HALL CONSTRUCTION Budgeted Statement of Revenues and Expenditures For the Five Months Ending May 31,.2009 Page 10 Year to Date Year to: Date Year to Date. Budget Actual Variance %Complete REVENU ES Transfers. from Other Funds $ 30,000 $ 0.00 (30,000.00). 0.00 Total Revenues 30,000. 0.00 (30,000.00) 0.00 EXPEND ITU RES Total Expenditures 0 0.00 0.00 0.00 Excess Rev Over (Under) Exp $. 30,000 $ 0,00 (30,000.00) 0.00 REVENUES Local SAC Residential Sewer Revenues Commercial. Sewer Revenues Transfers. from Other Funds Interest Earnings Total Revenues EXPENDITURES City of Gem Lake SEWER ENTERPR(SE FUND Budgeted Statement of Revenues and Expenditures For the Five Months Ending May .31,2009 Year to Date Year to. Date. Year to Date Budget Actual Variance Page 11. % Complete 1,200 $ 0.00 (1,200.00) 0.00 15,0.00. 4,565.45 (10,434.55) 30.44 0 17,517.49 17,517.49 0.00. 25,000 0.00 (25,000.00) 0.,00 930 1,889.33 959.33 203.15 42,130 23,972:27 ,(18,157.73)56.90 Wages and Salaries 630. 0.00 (630.00) 0.00. Employer Contrib - Retirement 49 0.00 (49.00) 0.00 Office Supplies. 209 36.12 (172.88) 17.28 Postage 100 0.00 (100.00) 0.00 Auditing Services 7,500 1,900,00 (5,600.00) 25.33 Engineering 4,166 0.00 (4,166.00). 0.00 Legal 84 0.00 (84.00) 0.00 Administration 3.,125. 0.00 (3,125.00) 0.00 MCES: Charges 7,500 8,113.60 613.60 108.18 Locates 332 253.10. (78.90) 76.23 Financial Services 2,834 1,252.00 (1,582.00) 44.18 Computer: Services 500 0.00 (500.00) 0.00 Metro SAC Charges 0 1,622.72 1.,622.72. 0.00. Repairs & Maint - Contractual 4,166. 0.00 (4,166.00) 0.00 Total Expenditures 31,195 I 3;.177.54 (18,017.46) 42.24 Excess Rev Over (Under) Exp $ 10,935 $ 10,794.73 (140.27) 98.72 REVENUES Interest Earnings Total Revenues City of Gem Lake INVESTMENT TRUST FUND Budgeted Statement of Revenues and Expenditures For the Five Months Ending May31, 2009 Page 12. Year to Date . Year to Date Year to Date Budget Actual Variance % Complete 0 $ 1,888.99 1,888.99 0,00 1,888.99 1,888.99 0.00.. Claims For Payment CITY ❑F GEM LAKE REVISED Robert Uzpen, Mayor Chuck Watson, Council Jim Lindner, Council Gretchen Artig-Swomley, Council, Tom Rasmussen, Council Jessie Hart, Treasurer Period Ending: 06/16/2009 Signatures Approving Claims Date of Approval Fund Totals I $ Amount General Fund Parks & Playgrounds 2004 Debt Service Fund 2006 Debt Service Fund 2007 Debt Service Fund City Hall Construction Fund Sewer Fund 29,327.37 0. 00 0.00. 0.00 0.00 0.00 2,122.65 Total All Funds 31;450.02 Included above are the pre -paid checks paid on May 29, 2009. There is a sperate check register that details the prepaid checks. The Cash Disbursements Jorunal includes ALL checks paid since the last Council Meeting. 6/15/09 at 08:24 32:26 Page: 1 City of Gem Lake Check Register - Prepaid Checks For the Period From May 29, 2009 to May 29, 2009 Filter Criteria includes: Report orderis by. Check Number. ,aa..# Date Payee Amount 7672 5/29109 Julie Newkirk 150.00 7673 5/29/09 QWEST 94,61 7674 5/29/09 White Bear Township 185.94 7675. 5/29/09 T.A. Schifsky & Sons, Inc. 1;012.50 Total . 1;443.05: 6115/09 at 08:23:51.45 Page: 1 City of Gem Lake Check Register For the Period From Jun 16, 2009 to Jun 16, 2009 Filter Criteria includes:: Report order is by Check Number. ack # Date. Payee Amount 7676 6116/09 Gretchen Artig-Swomley 190.24. 7677 6/16/09 Charles W. Watson 190.24 7678 6/16/09. Tom Rasmussen 190.24 7679 6/16/09 Robert L. Uzpen Jr 375.60 7680 6/16/09. James A. Lindner 190.24 7681 6/16/09 Corporate Mechanical 503,00 7682 6/16/09. Ryan Green 200.00 7683 6/16/09 Internal Revenue Service 304.88 7684. 6/16109 Kelly & Lemrnons, PA 7,906.00 7.685 6/16/09 Todd Kirchhammer 291.00 7686 6/16/09 LMC Insurance Trust 2,476.00 7687 6/16/09 Julie Newkirk 150.00 7688 6/16/09 Press Publications 141.50 ,Z6,69 6/16/09 Ramsey County 6,853.73 .�90 6/16/09 SEH 2,939.48 7691 6/16/09 Waste Management 354.57 7692 6/16/09 City of White Bear Lake 1,486.59 7693 6/16/09 White Bear Township 2,605.89. 7694 6/16/09 VO D 7695 6/16/09 Xcel Energy 388.52 7696 6/16/09 Gopher State One Call 21.75 7697 6/16/09 Matt Parrott and Sons Company 358.18 7698. 6/16/09 Metropolitan Council 1,622.72 7699 6/16/09 Jean Reiter 266..60 Total 30,006,97 6115/09 at 08:25:11.98 Page: 1 City of Gem Lake Payroll Journal For the Period From Apr 1, 2009 to Jun 30, 2009 Filter Criteria includes: Report order is by. Check Date, Report is printed in Detail Format. ,e. GL Acct ID Reference Debit Amt Credit Amt Employee 6116109 Gretchen Artig-Swomley 6116/09 Charles W. Watson 6/16/09 Tom Rasmussen 6/09 Robert L, Uzpen Jr 6/16/09 James A. Lindner 100-41100-100 7676 206.00 100-41100-130 100-41100-130 100-41100-130 100-41100-130 100-41100-130 12.77 100-41100-130 2.99 100-10100 100-41100-100 7677 206.00 100-41100-130 100-4:1100-130 100-41100-130 100-41100-130 100.-41100-130 12.77 100-41100-130 2.99 100=10100 100-41100-100 7678 206.00 100-41100-130 100-41100-130 100-41100-130 100-41100-130 100-41100-130 12.77 100-41100-130 2.99 100-10100 100-41100-100 7679 515.00 100-41100-130 100-41100-130 100-41100-130 100-41100-130 100-41100-130 100-41100-130 31.93 100-41100-130 7.47 100-10100 100-41100-100 7680 206.00 100-41100-130 100-41100-130 100-41100-130 100-41100-130 100-41100-130 12.77 100-41100-130 2.99 100-10100 12.77 2.99 12.77 2.99. 190.24 12.77 2.99 12.77 2.99 190.24 12.77 2.99 12.77 2.99 190.24 100,00 31.93 7.47 31..93. 7.47 375.60 12.77 2.99 12.77 2.99 190.24 1,441.44. 1.,441..44 6115/09. at 08 26:3r 1 Page: 1 City of %-...111 Lake Cash Disbursements Journal For the Period From May 29, 2009 to Jun 16, 2009 Filter Criteria includes: Report order is by Check Number. Reportis printed in Detail. Format. Date Check #. Account ID Line Description Debit Amount. Credit Amount 5/29109. 7672 100-41400-332 City Council Minutes - 05/19/09 150.00 100-10100. Julie Newkirk 150.00 5/29109 7673 100-41940-321 Phones- 5/13 - 6/12/09 94.61 100-10100 QWEST 94.61 5/29/09 7674 100-41940-385 Sewer & Water 2123 - 5/24109 185.94 100-10100 White Bear Township 185.94 5/29109 7675 100-431.25-400. Sweeping & Hauled. away 26 tons of sweepings 1,012.50 100-10100 T.A. Schifsky & Sons, Inc. 1,012.50 6/16/09 7681 100-41940-401 HH A/C Repair 503.00 100-10100 Corporate Mechanical 503.00 6/16/09 7682 100-41900-322 June Web Site IViaint & Hosting 50.00 100-41900-322 Web Site Domain Name Reg (2 years) 30.00 100-41900-322 Web Hosting (1 year) 120,0.0 100-10100 Ryan Green 200.00 6/16/09 7683 100-41100-130 2nd Quarter 2009 Payroll Taxes 304.88 100-10100 Internal Revenue Service 304.88 6/16/09 7684 100-41600-304 May General Legal. 7,906.00 100-10100 Kelly & Lemmons, PA 7,906.00 6/16/09 7685 100-41940-400 HH Cleaning 5/17-6/1.4109 270.00 100-41940-210 HH Supplies 21.00 100-10100 Todd Kirchhammer 291.00 6116/09 7686 100-41940-362 Property Ins - 4/1 to 12/31/09 523.53 100-41900-361 Liability ins - 4/1 to 12/31/09 1,182.73 100-41900-363. Auto Ins - 4/1 to 12/31/09 47.97 100-41900-361 Public Officials Bonds - 4/1 to 12/31/09. 102.78 100-15500 Prepaid Ins 1/1 to 3/31/10 618.99 100-10100 LMC Insurance Trust 2,476.00 6/16/09 7687 100-41910-332 Planning Commission Minutes- 6/2/09 150,00 100-10100 Julie Newkirk 150.00 6/16/09 7688 100-4.1900-351 Ordinance Publication 141.50 100-10100 Press Publications 141.50 6/16/09 7689 100-42100-305 100--421.00 307 100-10100 Sheriff - June 2009. Dispatch - May 2009 Ramsey County 6,648.23 205.50 6,853.73 6/15109. at 08:26:3' City of c-am Lake Cash Disbursements Journal For the Period From May 29, 2009 to Jun 16, 2009 Filter Criteria includes: Report order is by Check Number. Report is printed in Detail Format. Page: 2 Date Check # Account ID Line Description Debit Amount Credit Amount 6116/09 7690 6116/09 7691 6/16/09 7692 6/16/09 7693 6116109 7694 6/16/09 7695 6/16/09 7696 6/16/09 7697 6116109 7698 6/16/09 7699 Total 100-41910-302 100-10100 100-41900-384 100-10100. 100-42200-311 100-42200-312 100-10100. 100-41400-308. 100-41500-329 100-42401-313 100-41910-308 100-42401-316 100-41400.308 100-41500-329.. 100-41500-329 100-41940-210 100-41400-200 100-41400-200 100-41400-200 600-44100-329 600-10100. 100-10100 100.10100 100-10100 100-43122-382 100-41940-381 100-41940 383 100-10100 600-44100-319 600-10100 600-44100-200 600-10100 600-44100-318 600-10100 100-41900-352 100-10100 Engineering Services - May 2009 2,939.48 SEH June 2009. Recycling Waste Management June:2009 - Fire Services June 2009 Fire Marshall Services City of White Bear Lake 354.57 1,175.75 310.84 Clerk 170.00 Treasurer 814.00 Building Inspector 780.00 Planner 34.00 Secretary 44.00 Paralegal 211.50 Accounting Clerk . 144.00 Office Supplies 6.50 Supplies Heritage Hall 157.91 Postage - Newsletter 99.12 Postage - General 19.36 Mileage 5.50 Accounting Clerk 120.00. CASH -SEWER CASH - GENERAL 120.00 White. Bear Township VOID Street Lights - 5/3 - 6/2109 HH Electric - 4/29-5/31/09 HH Gas - 4/29-5/31/09 Xcel Energy May Locates Gopher State One Call Utility Bills -Format & Printing Matt Parrott and Sons Company Sewer Service - July 2009 Metropolitan Council June Newsletter Printing Jean Reiter 82.68 264.17 41.67 21.75 358.18 1,622.72 266.60 30,433.46 2,939.46 354.57 1,486.59 120.00 2,605,89 388.52 21.75 358.18 1,622.72 266:60 30,433:46 KELLY & LEMMGNS, P.A. 200 Crossroads 7300 Hudson. Boulevard North St. Paul, MN 55128 (651) 224-3781 Billing Period:.: 05)3112009 City: of Gem Lake Gem Lake City. Hall 4200 Otter Lake Road Gem Lake MN 55110 Account No: Page: 1 05/31/2009 10857M Previous Balance Fees. Expenses Advances Payments Balance City .of Gem Lake - General Counsel 4,420 00 7,870..00 36 00 0-00 -4,420 00 $7,906.00 KELLY & LEMMONS, P.A. thanks you asa valued client, KELLY & LEMMO NS, 200 Crossroads 7300. Hudson Boulevard North St. Paul; MVMN:55128 (651) 224-3781 Billing Period: - 05/31/2009 Page: 1 City of Gem. Lake 05/31/2009 Gem Lake City Hall Account No: 1.0857-10000011/1 4200 Otter Lake Road Statement No: 28778 Gem Lake MN 55110. City of Gem Lake.- General Counsel Previous Balance $4,420.00 Fees 05114/2009 PJK Review re: status of planning ordinance ad selection of zones Patrick J_.Kelly 05129/2009 CLH Research re: Administrative Procedures/Code Enforcement Claire .L Hvass 05/01/2009 TSO Editing work on text of Chapter 9 of Zoning Ordinance; compiling example diagrams; e-mail explaining rough draft 05/02/2009 T.SO Creating regulatory graphiics. for Gateway zoning code 05/03/2009 TS0 Creating regulatory graphics for Gateway zoning code 05/04/2009 TSO Working with roughdraft of Gateway ordinance, checking implementation of rules, making use matrix TSO Attend Council workshop meeting 05/05/2009 TS0 Revise Gateway zoning draft fo€lowing workshop comments. TSO Attend and present zoning code at Planning Commission meeting and public hearing Hours 1 50 2.10 00 1 50 210 00. 1 25 75.00 1 25 75 00 1 00 140.00 9.00 630 Q0 7.0.0 490.00. 4.0.0 560.00: 3.00 250 00 8.00 1,120 00 3 00 250 0,0 05/06/2009 TSO Completionof portions of thegateway code; incorporate comments from PC hearing 2.50 350 00 City of Gem Lake City of Gem Lake - General Counsel Page: 2 05/31 /200 9: Account No: 10857-100000M Statement No: 28778 Flours 05/07/2009 TSO Draft .correspondence to property owners with copy of district code;. complete diagrams and over. edits of draft code; begin revision/full 2nd draft of code, adding definitions and standards left out, adjusting dimensions for fit andrevising design standards 6.50 910-00 0510812009 TSO Telephone conferences with Tom Hansen and Rob Hansen 0 50 nlc 05/09/2009 TSO Revisions to Gem Lake Gateway code 4 00 560 D0 05/ 11 /200 9 TSO Draft correspondence to accompany latest draft of zoning code 0 25 35 .00 TS0 Meetings with Tom Hansen and Jerry:Filia, Rob Hansen and Nut Bilotta to explain and take comment on zoning proposal 3.00 nlc TSO Attend Council workshop 250 250 00 05/12/2009 TSO Prepare presentation material for Planning Commission 2.50 nlc TSO Attendmeeting of Planning Commission 2.00 250 00 05/1312009 TSO Telephone conference with Justin Gese about maps 0:25 35 DO 05/14/2009 TSO Edit final draft of Gateway zoning code 7.00 980 00 05/ 18/2009 TSO Telephone conference with Mayor on zoning code 0 25 35 00 05/19/2009 TSO Prepare ordinance adoption materials for Council adopting ordinance, ordinancesummary, changes to fee schedule 2,50 350.00. TSO Attend meeting of City Council 2.00 250 00 05/21/2009 TSO Final proofreading and edits to Gateway Zoning Code ! 00 140.0.0 TSO Integrating Gateway code into new Ordinance 43K 3.00 n/c. Trevor S. Oliver 65 75 7.,585 00 For Current Services.Rendered 68 50 7.,870 00 Recapitulation Timekeeper Flours Rate . Tota! Patrick J Kelly 1 50 $ i40,00 52 t 0. 00 Claire L Hvass 1 25 60.00 75.00 Trevor S. Oliver 85.75 1.15..36 7,585 00 City of.Cem Lake City of Gem Lake - General .C❑unsel Page: 3 05/31/2009 Account No: 10857-100000M Statement No: 28778 Expenses 05/3112009. Photocopy charges 36:00 Total Expenses 36-00 Total Current Work 7,906 00 Payments 05/26/2009. Payment. Received. Thank You. -4,420 00 Balance Due $7,908.00 Please charge my account $ Visa Master Card . Discover Account No (16 digits) - Expiration. Date (MM!YY) - Signature - Date - Please make checks payable to Kelly & Lemmons Payments received. after 0513112009 are notincfuded KELLY & LEMMONS, P.A. thanks you as a valued client. Invoice _AL Invoice Number: 218109 5 EH FEIN: 41-12512DB 1 651 490 2000 I NO 325 2055 Page 1 of 5 BILL TO' PayiThis:Amount I $2;939.48 • Otte Date 1 04-JUL-09 Invoice Date 1 04-juN-Og • 13111 Through Date J 31-MAY-09 ., Tents i 30 NET SE1:1:Client # 1 1627 client:PrOjec 1:# 1 Client PO 1 106131 Bill Short City of Gem Lake 4200 Otter Lake Road White Bear Lake MN 55110-3227 REMIT TO' • • 3535 VADNAIS CENTER DR Project Manager pi -ha / Phone BT PAUL MN.55110 Justin papa ilgegai2tellInc.cotn ! 612-70L5700 1 Client Service ManageriEmall 1 Phone Justin J ge seigsphlnd,coml Accounting Representative / Phone • - ..„. Ojale / lojala@Gehloc_carn / 952-912-250U Project # -1-ProjectINTarne [ Project DescriptIon . , 106131 K GEMLCity Engineer Services ciof Gern Lake - City Engineering Services . ... „ty Project Billing Summary Current Prior To Date Totals Notes: $2,939.48 $3,885.55 $6,825.03 ShortElliett. Hendriktoh inc1 10901 Red C.Ir Dr Ste 200, MInnetorIca, MN 55343-9301 SEH is an equal opportiMity employer 1 www.sehinc.corn 1 962,9.1.22680 1.130077.34-6767 1 052-g12-2601 fax _A Invoice SEH Invoice Number: 218109 FE€N: 4.1-125120E i 651 490 2000 [ 800.325 2055 Page 2 of 5 Task: 1.0 - Misc. Services Direct Personnel Hours Rate. Amount Gese, Justin M 11.00 110.31 $1,213..46 Ojai%, Leslee J 0.40 96.62 $38.65 Schwidder, Arthur J (AJ) 4,00 113.00 $451.99 15.40 $.1,704.10. Reimbursed - Expenses Expenditure Type Amount Computer Charge $46.20 Billing Summary Current Prior To Date Direct $1,704.10 $3,77875. $5,482.65 Reimbursed - Expenses $46.20 $106.80 $153.00 Totals $1,750.30. $3,885.55 $5,635.85 $46.20 Task #1.0 Total: $1,750.30 Task: 2.0 - G1S Services Direct Personnel Hours Rate Amount Steuernagel, Michael S (Mike) 11.00 101.81 $1,119.88 11.00 $1,119.68 Reimbursed - Expenses Expenditure Type Amount Mileage. $36.30 Computer Charge $33.00 Billing Summary Direct Current $1,119,88 Prior. To Date $1, 1 19.80 Short Elliott Hendrickson mnc., 109a1 Red Cir Dr Ste 200, Minnetonka, MN 55343-9301 SEI-I is an equal opportunity employer l www.sehlnc.com 1952-912-2600 1800-734-6757 [ 952-912-2601 fax $69.30 SEH Invoice Invoice Number: 218109 FEIN:.41-125120e .{ 651.490.2000:1 800.325:2055 Page 3 of 5 Task: 2.0 - GIS Services Billing Summary Reimbursed - Expenses Totals. Current $69.30 $1,189.18 Prior $0.00 $0.00 To Date $69,30 $1,189.18 Task # 2.0 Total: $1,189.18 Invoice total $2,939.48 Short Elliott Hendrickson Inc.,10901 Red Clr Dr Ste 200, Minnetonka. MN 55343-9301 SEH is en equal opportunity employer I i ww snhlric.cora i 952-912-2600 1800-734-5757 ! 952-912-2601.fax. .� Invoice SEH Invoice Number: 218109 FE1N: 41-4251208 651:490.2000.1 800.325.2055 Page 4.of 5 Billing Backup Task: 1.0 - Misc. Services Direct Personnel Date. Hours Rate Amount Projec€.Engineer Gese, Justin M 01-MAY-09 2..00 110.32 $220_63. Schcenernan Road cost estimates Gsse, Justin M 04-MAY 4l9 2:00 110.32 $220.63 Scheunemen Rd cost estimaterevisions Gese, Justin M 1 l-MAY-09. 3.:00 110.31 $330.94 Council Workshop to revise Zoning Map Gess,.Justin M. 12-MAY-09 2.00 110.32 $220.63 Council Workshop to revise Zoning Map Gese, Justin M 20-MAY-09 2.00 1.10.32 $220.63. Revise Gateway zoning maps and Scheneman Rd cost estimates Schwidder,: Arthur J (AJ) 20-MAY-09 0.50 113.02 $56.51 Phone conversation ' with Justin Gese regarding proposed pavement repair an Scheunemari. Road. Schwidder, Arthur J (AJ) 22-MAY-09 3.00 112..99 $338.97 Perform analysis to determine adequacy/life expectancyof proposed repairs to Scheuneman Road. Schwidder, :Arthur J(AJ) 26-MAY-09 0.50 113.02 $56.51 E-mall correspondence with Justin Gese regarding recommendations for pavement on Scheuneman Road. Son€or.AdmInistrative Assistant Ojala, Leslee J 07-MAY-09 0.40 96.62 $38.65 15.40 $1,704..1 0 Reimbursed -Expenses Date Name Comment Amount Computer Charge 02-MAY.-09 $s:.00 09-MAY-09 $1.20 09-MAY-09 $6.00 16-MAY .09 $15.00 23-MAY-09 $10.50 23-MAY-09 $6.00 30-MAY-09 $1.50 $46.20 Task.# l.0 Tote!: $1,750.30 :Short Elllott.Hendrickson Inc ;10901 IRed Clr Dr Ste 200, MInr etarika, MN 55343-9301 SEH is an equal opportunity employer i www.sehtnc,cam 1952-912-2504 ( 800.724 6757 j 952-012-2501 fax ....r! Invoice Invoice Number:218109 SEHFEIN: 41-1251206 651.4E02000 l 800.325.2055 rage 5 of 5 Billing Backup Task: 2.0 - GIS Services Direct Personnel pate Hours Ratee. Amount. Praject.GIS Analyst Steuernagel, Michael S (Mike) 07-MAY-09 0.50 101.80 $50.90 meeting prep for land use and zoningmap council workshop - checking to make sure we have most recent map information. Steuernagel, Michael S (Mike) 08-MAY-09: 0.50 101.80 $50.90 meeting prep for land use and zoning map council workshop - checking: with Becky Blue in regards to Ramsey county GIS as well as potentially using Key license rather than intemet connection Steuernagel, Michael S (Mike) 11-MAY-09 7.00 101.51 $712.66 Meeting prep. 2 hrs- getting everything ready, files, computer, projector etc. Drive time 2O hrs hrs Meeting 3 hrs Steuernagel, Michael S (Mike). 12-MAY-09 1.50 101.81 $152.71 Revised the Zoning map to match the revisions from last night's meeting — fine tuned them based on conversations after the meeting Steuernagel, Michael a (Mike) 13-MAY-09 1,00 .101.81. $101.81 created a new 9 x 11 map of the Gateway area Steuerrtogel, Michael S (Mike) 20-MAY-09 0.50 101..80 $50..90 Revisiosn to the map and repdf and jpgconversion Reimbursed - Expenses Date Name Mileage i 1-MAY-09 Steiaernaget, Michael S (Mike) Computer Charge. 09-MAY-09 16-MAY 09 23-MAY-09 11.00 $1,1 19.88 Comment Amount Drove to Gem. Lake for Meeting $36, 30 $3.00 $28.50 $1.50 $69.30 Task # 2,0 Total: $1,1189.18 Shert lriiiott Hendrickson Inc., 10901 Red Clr Or Sta 200, Minnetonka, MN 55343-9301 SEH is an equal opportunity employer l w►v►4:sehlnc.com l 952-912-2600 I B00-734-6757 i 952-912-2601. fax DATE: 6/1/2009 TO: Mayor Uzpen and Council Members. FROM: Kelly & Lemmons, P.A. RE: Bill modifying municipal enforcement of the State Building Code Background House File No. 1526, and its companion bill, Senate. File No. 1524, deal primarily with modifying municipal enforcement provisions of the State Building Code ("Code") and its requirements for persons with disabilities, amending Minn. Stat. § 326B.106, subd, 9 and § 326B.16. The House bill is authored by Tim Mahoney and Tom Rukavina. Its companion bill, comprised of identical text,is authored by Linda Scheid, David Tomassoni, Tony Lourey, and Dan Sparks. The hill was introduced to the House on March 9, 2009 and referred to the Labor and. Consumer Protection Division on. March 16, 2009..The Senate version wasintroduced on March 16, 2009 and then referred to the committee on Business, Industry and Jobs. Substance and Implications of Changes to Current Statute The bill amends Minn. Stat. § 32611106, subdivision 9, eIiminating the entire existing municipal enforcement section. The current section provides options for municipalities. that have not adopted the Code to enforce building code requirements for persons with disabilities. The first option is to enter a joint powers agreement for enforcement with another municipality that has adopted the Code. The second option is to contract for enforcement with a building official certified under § 32613.133, subdivision 3, requiring an examination, documentation, and certain training. The bill purports to move the municipal enforcement section to § 3268.1 06 to the. Enforcement of Requirement for Persons with Disabilities section (326B. i 6). The application subdivision of enforcement section begins with the added assertion that, "The State's Building Code requirements for persons with disabilities apply statewide." This language appears to be broadening the application of the Code's requirements for persons with disabilities to a statewide, mandatory enforcement, regardless of whether the municipalities has adopted the. entire Code through an ordinance or not. The existing enforcement of the Code's requirement. for personswith disabilities. may be sporadic and lacking uniformity. The existing statute then differentiates between statutory or home charter cities and all other areas in dealing with enforcement when a Code adopting ordinance does not exist. In a statutory or home rule charter 1 city, the city is responsible for enforcement of the code. In all other areas where there is no adopting ordinance, the county is responsible for enforcement. In the proposed "Municipal Enforcement" subdivision of 326E_ 16, the language is similar except "may" is changed to "shall" in regards to municipal enforcement of the Code's. requirements for persons with disabilities in areas where the Code is not adopted by ordinance. This proposed change requires municipalities to take action to enforce the Code's requirements for persons with disabilities whereas the existing statutorylanguage merely allows them to enforce thecode through one of two mechanisms. The mechanisms are identical tothose described above: I) entering into. a joint powers agreement with a municipality who has adopted the Code, or 2) using a certified building official. Subdivision 3, "Responsibilities," is new subdivision added in the Bill which requires municipalities to fulfill Code responsibilities and perform duties including Code administration, plan review, and inspection in accordance with the procedures established in the Code_ This may add more requirements .formunicipalities and create an increased work load if the municipalities had neglected inspection or enforcement in the past. Looking further into the Code would provide specifics as to the responsibilities. The final addition is Subdivision 4, "Enforcement by state building official." If the commissioner determines that a municipality is not following their obligation to administer and enforce the Code's requirements for persons with disabilities, the commission can instruct a state building official or another building official to undertake the administration and enforcement. The commissioner must notify the affectedmunicipality in writing. The municipality may challenge the commissioner's determination as a contested case before the commissioner pursuant to the Administrative Procedure Act. The commissioner will decide appropriate fees to charge the municipality for the administration and enforcement service rendered. Any cost arising from the state administration and enforcement of the Code shall be borne by the municipality. This final addition poses a large obligation for municipalities which have. neglectedto enforce and administer the Code's requirements for persons with disabilities. Depending on the amount of previous enforcement and administration completed this bill could affect municipalities' additional duties substantial or very little. DATE: 6/1/2009 TO: Mayor Uzpen and Council Members FROM: Kelly & Lemmons, P.A. RE: Bill Creating Administrative Penalties for Traffic Citations Background House File No. 1517, and its companion bill, Senate. File No. 1894, propose to create administrative penalties for certainminor traffic offenses and grant municipalities the authority to enforce them after adopting an ordinance and providing for a neutral third party. Both bill versions amend Minn. Stat. § 6.74, regarding information collected from local governments, § 169.022, regarding uniform application, and § 169.985, regarding the prohibition of traffic: citation quotas. The bill proposes an entirely new section establishing administrative fines for certain traffic offenses collected by municipalities and requires the publicsafety commissioner to revise the uniform traffic citation. The House bill was introduced on March 9, 2009 and referred to the Public Safety Policy and Oversight Committee and then to the Finance Committee's: Public Safety Finance Division on March 23, 2009. The House version is authored by Larry Hosch, Roger Reinert, and Bev Scalze. The Senate version was introduced on March 26, 2009 and referred to the committee on State and Local Government Operations and Oversight. On April 2, 2009, the committee provided a report, recommended it to pass, and the bill was re -referred to the Judiciary Committee. It is authored by Tarryl Clark, David Senjem, Linda Higgins, Bill Ingebrigsten, and Mary Olson. Content of Administrative Penalties Bill Procedural Changes The first proposed change to the current statute is simply to require the local unit of government to provide receipts and account for fines collected pursuant to the proposed administrative fines portion of this bill. The House version of the bill proposes to amend the Uniform Application provisions of § 169.022, allowing an exception for administration fines to the statewide. application of penalties for traffic violations_ The Senate version does not include this change. Both the House and Senate versions add administrative penalties to the list of citations that the Traffic Citation. Quota Prohibition Statute, § 169.985, prohibits. The -Senate version changes the format ofpaper citations issued •so a ticket maybe designated as an administrative citation. It allows.for space to be included for Iocal units of goverment to print. specific instructions on hoar to pay and challenge'administrative citations. Mouse Version of Administrative Penalties for. Certain Traffic Offenses- § 471.9(34 The House version of this bill refers to the offenses as administrative "penalties" whereas the 'Senate version refers to them as "citations." In the House version, the county board, or city council, or any home rule charier or statutory city may adopt ordinances to establish administrative penalties for a vehicle operator who 1) speeds, but the violation isless than ten miles over the limit; 2) fails to obey a stop line; or 3) operates a vehicle in violation of § 169.46 to 169.68 and § 169.69 to 169.75, violations such as improper hitching. The authority to issue an administrative citation is limited exclusively to those listed. This may affect a municipality's ability to utilize other administrative penalties or citations. A holder of a commercial driver's license may not be issued a citation under this section. Only peace officers will have the. authority to issue citations. That officer may not be required to issue a citation under as an administrative penalty instead of state law. Unlike some other city penalties, participation in the administrative penalty process is not voluntary. There must be a civil process for contesting the penalty which includes a neutral third party. The penalty may not exceed the maximum state fine for the offense. The ordinance may provide for the penalty to be transferred to a treasurer and deposited in the city's general fund. There :must be a uniform administrationcitation issued throughout the state created by the commissioner of public safety. Once an ordinance is enacted by a local government, they must alter the uniform citation to include specific instructions on how to challenge an administrative citation. This creates more state interaction and influence over the administrative penalty process. If the state auditor concludes that a local unitof government enacted or enforced an ordinance not in compliance with this section, the state auditor must alert the commissioner: of revenue who shall reduce aid payments. 2 Senate Version of Administrative Citations for Certain Traffic Offenses § 169..999 The Senate version is somewhat different in that it explicitly requires the local unit of government to pass a resolution 1) authorizing the issuance of administrative citations; 2) obligating the local .government to providea neutral third party to hear and rule on challenges; and 3) barring peace officers from issuing administrative citations in violation of this section. The offences that exclusively qualify to be administrative citations are the same as the House. version and are exclusive. When issuing a speeding citation, the violator's actual speed must be. used and the actual speed the vehicle was traveling may not be reduced so the citation. will qualify for an administrative violation. Like the. Houseversion, only peace officers may issues these citations, and they may not be required to issue them instead of criminal citations. Similar to the House version, there must be a neutral third party for the purposes of contesting the citation. This person may be employed by the city to hear and rule on challenges. The State Patrol may contract with cities to provide an avenue to contest the citation. The Senate bill provides more detail about the amount of the fine [$60) and how the fine revenue will be allocated. These citations do not apply to commercial drivers and will. not appear on the violator's driving record. Like the House version, there is alsoa section requiring the commissioner ofpublic safety to revise traffic citations while working with other state organizations. Implications. for Municipalities This bill provides municipalities the authority to effectuate administrative penalties for certain traffic offenses with minimal participation from the state. The state would only be involved in creating the template citation, collecting receipts of the fines, and monitoring statutory compliance. When comparing the administrative penalty bills to those ordinances created by municipalities to enforce ordinance violations, it is unclear whether this bill limits that authority, asit reads, "The authority to issue an administrative citation is exclusively limited to those offenses in this subdivision." .Changes may needto be made to existing administrative penalty ordinances if this bill is passed. 3