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HomeMy WebLinkAbout2017 06-20 CC PACKETCity of Gem Lake; MNN City Council Meeting June 20th, 2017 Call To Orden- of City Council Meeting — By Mayor ilzpen at 7 P.M. Call of Roll Uzpen Artig-Swomley Lindner Kuny Hosak .Others in Attendance: Sign-up Sheet Approval of City Council Minutes and Agenda ■ City. Council Agenda for this meeting (Accept Agenda) • Minutes of the City Council .Meeting for May Old Business • Newsletter Ideas New Business • Planning Commission update BenJohnson, Chair, Planning Commission ■ Andy. Gitzlaff - City. of Gem Lake transmitting the city support to the Rush Line Corridor.. Task Force The Regional Railroad Authority and the Met council Public Hearing. ■ Audit Findings Chris Knopik from.ClifftonLarsonAlten ■ Claims for the month of June, 2017 • Monthly Financial Reports ■. Purchase of Toni Hansen's field — Public Hearing o Motion to borrow reserves o Resolution for Contract forDeed Resolution 2017.- 04 a Resolution for Bond Future Council Meetings ■ Workshop Meeting July 10th.at 7:00 p.m. ■ Next City Council. Meeting, July 1.8th at. 7;00. pm. Adjournment ■ The meeting adjourned at City of Gem Lake City Council Meeting —June 20, 20.17 Meeting Minutes Mayor Uzpen called the. meeting to order at 7:01.p.m. Councilmembers Artig-Swomley, Bosak, Kuny and Lindner were present.. ❑thers in attendance: City Attorney Patrick Kelly, City Finance Director Torn Kelly, Andy Gitzlaff, Ramsey County Regional Rail, Ben Johnson, Planning Commission Chair, citizens; Kyle Anderson., Roys Andrews, Lenore Bolfing, Pete Cremin, Shirley Dingman, Roberta A. Feiner, Kari Fonstad,:Cheryl and Chuck GranIund, Beth and. Tom Hansen, Beth and Steve Herzog, James Johanning, Bi11 and Judy Jahn, Carl Johnson, George Jpngmann, Ken Kirchhoff, Cordon Kordosky, Constance and. Daniel Kunin, Debra Larsen, Jody and Ken Lorenz, Paul Luecke, Lowell Lundy, Fritz Magnuson; Julianne Markiewicz, Taylor McGuire, John McKenzie, Brad Naylor, Pete OswaId,.Richard and Roberta Pientka; Art and Susan Pratt, Craig and Kathy Rafferty, Steve Rowan, Justin Short, Burnell Shull, John Snidarich, Gary. Tangwa11,JefFTschetter, Steve Varley,.Nathpn Fair; Landrnark.. June 20, 2017, Agenda A motion.was made by Co.undImembe.r Artig-Swomley,.seconded.:by Councilmemb.er Bosak to approve the agenda for June 20, 2017, motion passed. Agenda approved. Minutes Co.uncilmember Lindner made a motion, seconded by Councilmember Artig-Swornley to approve the. minutes for May 16, 2017, with CounciImeinber Bosak abstaining, motion passed. Minutes approved. Committee Reports Ben Johnson, Plan'n16g Commission chair updated the councii.0nthe Planning Committee meeting`on June 6, 2017. The committee reviewed.the predator offender ordinance. No. 131,:draft. Committee. recommended. approval .with a 4-O vote. in favor, with one:.questio.n as to how.a church would be defined.. Reviewed the. Consolidated Land Use Ordinance,:committee ta,bled.the ordinance until the July 5'h, P.lanning Commission meeting to allow time for more comments. The ordinance is posted. on the web site. and copies. available at city hall. Held .a public hearing on the purchase of property on County Road- E, good discussion took place between the citizens and. committee. The. planning. committee were not in favor of the p.urchase.of the property. CQuncilmember Artig-Swo.mley thanke.d Mr. Johanson, Mr. Lindner and Mr: Emeott for all their hard work on the Consolidated Land Use ordinance. Old Business Newsletter ideas — land use.ord1nance, property purchase,.generaI City news, Rush Line, National Night Out,. h.ow,city residents can obtain city water and how to pay for it. New Business Rush Line Corridor Update, Andy Gitzlaff AndyGitzlaff, Ramsey County Regional Rail Authority,. presented on the preferred alternative; dedicated guideway bus rapid transit from union Depot 1n St. Paul to White Bear Lake. The route would be Robert Street, Phal.e.n Boulevard; Ramsey County Regional Railroad Authority right"of-way (BruceVento Trail), and Highway 61. The cost of the project would be $420 million, The public hearing open ed.at7':35 p.m. Steve Rowan, 3 Hillary Faun Lane; asked. about County Road E station: Taylor McGuire, 1365 Goose Lake Road, asked about a park and rides at stations. Response; City of Gem Lake City Council Meeting minutes, June.20, 2017 Page 1 Sorne stations will have a parka nd ride. The. public hearing: closed at 7:45 %p.m, C.ounciImember Lindner made a motion to support Resolution 2017=05, transmitting the City of Gem lake support for the.LocpIly Preferred Alternative for the Rush line Corridor to the Rush Line Corridor Task Force, the Rarrisey County Reginal Railroad Authority and the Metropolitan Council. Councilmernber Artig-Swomle.y seconded the.. motion, motion passed. Audit Findings, Chris Knopik, CliftonCarsonAlien Chris Knopik. presented the results of the City of'Gem Lake 2016 audit. Because the City of Gem Lake now has an employee, the City will need to adopt an out-of=state travel. policy. Mr. Knopik will provide samples for the city to adopt. Claims. for the month of June, 2017 A motion was made by Counciime.mber Lindner, seconded by CounciImemberArtig-Swomley to approve the claims for June, 2017, Motion passed,. C:I.aims approved. Monthly Financial Reports Approved. A motion was made by.Councilmernber Artig-5wornley, seconded by Councilmemher Lindner to make a $2,000 donation with funds received from the charitable gambling account to the White Bear Lake: Food Shelf during the.month of July, 2017. Motion passed, Purchase. of Tom Hansen's Field — Public Hearing The Mayor provided an overview of the public hearing. The proposal is .to buy 18 acres, sell off part of the land .to a developer, thereby the city controls the land and the. development. Part of the land.would be paid for with a Cq with:a 5 year term and part would be. sold to:the developer at.$.5.2,000 an acre. ❑ver the years citizens have asked for a development of villa homes so they can stay in Gem Lake.but not necessarily in their current home, 20 -25 villa harries projected tc .meet that need. In additional the villa homes would increase the'tax revenue which will pay for all or most of the bond. The City of Gem Lake must respond to the Metropolitan Council with their requirements.some'of which include parks,. growth, sewer, water for cities. Council.member Bosa.k.spoke, He has been on the council. for over 20 years, he thanked the audience for attending and said we ne.ed your continued input every month, we need more involvement, said his:agenda.has always been towards keeping takes as low as he can, he attended the. Planning Commission meeting: and felt ttiat much misinformation has been circulated, for instance that the council has been denying developers, said that hasn't happened, no. applications have been denied. Bosak cited. developments voted -in in Gem Lake, Hillary Farm, New Trax, water in the Hoffman's Corners area to spur development and White Bear Montessori. Developers have come in floating ideas to put in something the land isn't..zone.d for..Bosak:said an ice. arena waso ne example, another example was Landmark Development's first concept sketch that was well.like by the council and at 29 homes. with a park, it wag only a few homes:over the density for the zone. They were encouraged to sirh ply meet the:zoning requirement and come.bwk. But Landmark came back with a new plan that had 39 homes. Bosa.k said that he favored traits.or a. park because it. had been asked for in citizen surveys but alaviously a park or trails could only go on undeveloped. property and. geographically could never be.adjacent to every home. CounciImerriber Artig-SwomIey spoke; mirroring what Commissioner Bosak said, we want to preserve GO Lake, we do. have. mandates frorh the state and federal government and`ifs a balancing act. She has received feedback from citizens. In addition she. reminded attendees that we are your neighbors and swear words and obscenities are not appropriate. City of Gern Lake City Council Meeting rnJnutes,. June 200 2017 Page.2 She received.41 phone calls and of those phone calls, S people were in favor of this. Finance Director Tom Kelly explained the property tax. abatement. Mayor Uzpen opened the public hearing at`8:43 p.m. Roberta Psentka; 3970 Tessier Road, opposed to the park and the city as a. developer. Richard Pientka, 3970 7essier Road, asked about: the planning commission results. How were the properties picked for abatement? Tom Kelly:response: We have to pick properties that surround the land, some commercial not necessarily surroundingthe [anal, properties can only be abated .once. Carol Schacht, 1201 Little Fox Land, opposed to the park;. property tax abatement and overall. proposal.. Connie Kunio; 1270 Goose Lake Road, opposed, if people who are surrounding the land feel strongly about it, they should. purchase it. Brad Naylor; 1430 Goose Lake Road, in favor, did not appreciate the council being called inappropriate names, citizens need to recognize the number of hours. the council spends volunteering .their time. Ken Kirchoff, 3744 Sig Fox Road, opposed, the:city.shauid not. get involved. Justin.Sho.rt, 3614 6ig.Fox Road, oppa.s.ed..to..sidewa.lk. ❑n County Road E, not opposed to the city purchasing the property, noted that he received an anonymous. note.from a stranger stating be: .was operating a business Jn his accessory.buiIding, stating he is doing personal woodworking for himseIf. and. working on his Jahn Deere. in his. building and invited any cltllen to stop over and see for themselves. Kyle .Andie rson,.3872 Scheuneman Road, opposed,. taxes Will go up, a city doesn't have to do everything the Met Council says. Craig. Rafferty, 3750 Big Fox, nothing wrong with the concept, supportive of the general concept, city should not purchase. Cal Johnson, 1355 Goose Lake Road; opposed, love a.park or even a. trail down Goose Lake Road, kari Fonstad, 135S.Goose Lake Road, encouraged the co.unciI to table the idea and would iike:more. "informatiph. Jeff Tschetter, owns rental property 3930. Scheunernan Road, does not reside there, opposed, :asked about. the: risk associated With. the ..purchase. Julieann Markiewcz, 7 Hillary Farm Lane, opposed; should slow down the process, questions about the process.. Paul Luecke, 17 Hillary Farm Lane, thanked the council for their work, talked about vetting, idea of .the costs; slow. down and look at the nurn bers, found it unfortunate and disappointed that the arguments became so.personal. Taylor McGuire, 1365 Goose Lake..Road, opposed, you should listen to your CPA, you only have seven months of cash. Commissioner A.rtig= Swomley response: The. current balance of funds doesn't reflect the infusion of property tax. monies that we receive semi-annually, that payment has yet. to be received. Beth Herzog; 1433 Goose. Lake Road, this isn't the.. meeting to discuss a: proposal from a developer. A:resident of the community without. proof accused the Ma..yor. of working with .the.H.ansen's far monetary gains. The..puolic. hearing was closed at 1a:22 p.m. A motion was made by Councilmember Lindner, seconded by Councilmember Bosak to voteon purchase. A voice vote was taken, Mayor Uzpen, abstained, Councilmember Lindner, nay, Counci[me mher. Bosak, nay, Councilmember Artig=SWom1.ey, hay, Councilmember Kun.y, nay. Councilmember Bosak:made a .motion, seconded by Councilmember Artig-Swomley to drop the remaining two.resolutions, no objections,.motion passed.. Next Meetings City of Gem Lake Workshop for Monday, July 10, 7:00 p.m: Next City Council meeting, Tuesday, luly 18, 7:0p. p.m. Adiournment Being there no further.business, following a motion by Councilmember Lindner; seconded .by Councilmember Artig-Swomley,.the meeting adjourned at 10:30 p.m. • Respectfully submitted, Gloria Tessier City:of Gem Lake.City. Council Meeting minutes, June Z0,.2b17 Pa.ge .3 Resolution of the City of Gem Lake Ramsey County, Minnesota Resolution 2017 - 05 Resolution transmitting the City of Gem Lake support for the Locally. Preferred Alternative for the Rush Line Corridor to.the Rush Line Corridor Task Force, the .Ramsey :County Regional Railroad Authority and the Metropolitan Council WHEREAS, the Rush Line Corridor is an 80-mile travel corridor between St. Paul and Hinckley Minnesota, consisting of urban; suburban and rural communities; and WHEREAS, a. Pre -Project Development Study has been completed to -analyze bus and rail alternatives in the 30-mile study area between St. Paul and Forest Lake, which has the greatest.potential for significant transit improvements in the near term; and WHEREAS; the purppse of the Rush Line Corridor Project is to provide transit service thatsat'isfies the 1png-term regiona1.mobiIity and accessibility needs for businesses and the traveling public acid catalyzes sustainable development within the. 3.0-mlie study area; and WHEREAS, the Pre -Project. Development Study Was a joint focal and regional planning effort conducted by the Rush Line Corridor Task Force and led by the Ramsey County Regional Railroad Authority; and WHEREAS, after.@ thorQugh.techgical analysis of 55 potential route segments and 7 transit modes acid extensive public engagement through the Pre -Project Development Study Alternative 1 has been identified as the locally preferred alternative; and WHEREAS, Alternative 1 best meets the project's purpose.and need and would likely qualifyfor Federal Transit Administration New Starts funding; and WHEREAS, the Locally Preferred Alternative. includes the definition of the made, conceptual alignment :and general station locations which can be refined through further environmental and engineering: efforts; and. WHEREAS, Alternative 1 is defined as Bus Rapid Transit. with 1n.a.dedicated gbid eway:generally along Phaien.Boulevard, Ramsey County Regional Railroad Authority right-of-way and Trunk Highway 61, extending approximately 14 miles, and connecting Union Depot 1n downtown. St...Paul to the east side neighborhoods of St. Paul and the Cities of Maplewood, Vadnais Heights, Gem Lake and White Bear Lake (see attached figure); and WHEREAS; Alternative 1 would. be co -located With the Bruce Vento Trail through the portion of the route that: utilizes the Ramsey County Regional Railroad Authority right-of-way; and. WHEREAS, the next phase of the project will include environmental analysis under the Federal and State. environmental review processes to avoid, minimize, and mitigate. potential impacts while maximizing mobility; accessibility and. surrounding economic development opportunities; and. WHEREAS, the.public will continue to be engaged thraughoutthe environmental review process.and subsequent design, engineering and construction phases to ensure that the project is reflective of .the needs of the diverse communities within the Rush Line Corridor, and WHEREAS, a connector bus from White Bear Lake to.Fo rest Lake and other bus. service..improvements will continue to be explored during the environmental analysis phase.of the Project; and WHEREAS; the comments submitted by agencies, adjacent commun€ties, the business sector and the. public during the Locally Preferred Alternative comment. period and throughout the duration of the Pre - Project Development Study will be addressed accordingly in the -environmental analysis phase of the Project; and NOW, THEREFORE BE IT RESOLVED that the City of Gem Lake supports the selection of Alternative 1.as the locally preferred alternative.. BE IT FU.RTHER RESOLVED, that the City of Gem lake commits to undertaking and developing station area p€ans for the proposed BIAT station areas within its jurisdiction.based on market conditions; community input. and. Metropolitan Council guidelines and expectation for development density, level of activity and design. BE IT FURTHER RESOLVED, that the Cityof Gem Lake supports the planned.Route 54 extension. and exploration. of other transit improvements within the study area by others Including, but not limited to,. irnproved bus service: atong 35E arid to the northern portion of the Rush Line Corridor; the future conversion of Route 54 to Arterial BRT.arid. the consideration of a potential Modern Streetcar along E. 7th Street to create a more comprehensive transit system. BE IT FURTHER RESOLVED, that this resolution adopted by the City of Gem Lake be forwarded to the Rush Line Corridor Task Force, the Ramsey County Regional Railroad Authority and the Metropolitan Council for ,their consideration. WHEREUPON, the above resolution was adopted at the June 20th regular City Council Meeting for the City of Gem Lakes Ramsey County.Minnesota,. made. by Council Member XXXXX and.seconded by Counci€ Member XXXXXX. ATTEST l; William Short, the duly qualified City Clerk of the City of Gem Lake, County. of Ramsey, State of Minnesota; do hereby certify that the foregoing resolution is a true and accurate re prese ntation. of action taken by the. City Council of the City of Gem Lake on the date f€rst written. William Short, City Clerk Date. LPA Figure Ls e is r To-w wli h i p Downtown White -Bear 1. Lake w1lite Lake.. Marina Tr langli 6em Cedar Avenue L:ake c6unty-Ftoad E V R'd n a.] s H-e ig h:t d. M John's Maplewood— *Tho pio*l lftclu&s "or smooragon of Hospital Mall this omned)f 6" "ervIcoalOT12 vAth ........ addika,l seeder bus routes 43 M existing system hprovemenls w. . . . ....... Hwy 3English M a p I e w d �0. Frost . ........ .. Avenue Larpenteu Avenue IL E Phalan cay,ga Payne z Street Olive Mt..Ahry St.. Raul �L A union Legend f1� r BIvd RushLine Alignment RUSH LINE PRE -PROJECT DEVELOPMENT STUDY LOCALLY PREFERRED ALTERNATIVE SUMMARY 3� Forest Lake Hugo _`' White ----- Bear Lake White Bear Township Gem Lake Vadnais Heights STUDY PROCESS an i13ENTIfY TRANSPORTATiDN Lake ar NEEDS OF CORRIDOR [— W White tu Lake Marina 67 Triangle d ❑EVELOP PURPOSE & � NEED STATEMENT CedzrAveriue u >b 3.DEVELOP AND EVALUATE ya111 o, . St, John's Maplewood ti5 oome= bus serroe a!av r..1 Hospital Mail &ddldanal leader bus foup_5 a•d a-=sor J Sy's.km iRafD+�nG 1 r- Hwy 367E fish MaR]BWtlodYJ Frost AYemm Larpenleur Avenue X 8 3 z Phal-n Village St" Paul 1W IDENTIFY TRANSIT INVESTMENT THAT BEST MEETS THE NEEDS OF THE CORRIDOR Referred to as the Loco11PreferredAk,,, ti, (LPA) f f Orange Line BRT, Los Angeles, CA Photo Credit Los Angeles Metro anion Legend :� thf6lh 53dSelloggQePot Slatlons The Rush Line locally preferred alternative is dedicated sh a Rush laneAfignmenl guideway bus rapid transit from Union Depot in St. Paul to � White Bear Lake, generally along Robert Street, Phalen Boulevard, Ramsey County Regional Railroad Authority right-of-way (Bruce mmkt���� Vento Trail), and Highway 61. Dedicated guideway bus rapid transit will share the Ramsey County Regional Railroad Authority right-of-way with the Bruce Vento Trail. The locally preferred alternative is a cost-effective solution that meets federal transit administration bench rnarksfor fund 1ng The locally preferred alternative best meets the needs of the corridor Why bus rapid transit? • Similar level of service, but half the cost of light rail Fast and frequent Reliable and convenient ■ Catalyst for economic development Why the Ramsey County Regional Railroad Authority right-of-way? • Less costly due to public ownership of right-of-way ■ Highest potential ridership Shortest travel time NEXT STEPS IUNEIJULY 2017 County and cities along route asked to confirm support for locally preferred alternative Greatest development potential due to permanence of dedicated guideway No private property acquisitions are anticipated Why Phalen/Robert into downtown St. Paul? ■ Serves the most jobs and equity populations (zero -car households, households below poverty) Shortest travel time • Highest potential ridership ■ Convenient transfer to METRO Green Line expands transit access within the region Why Highway 61 north of 1-694? • More cost effective than using BNSF Railway right-of-way Serves more jobs More than 5,600 people participated in the hush Line study through community events, business outreach, presentations, pop-up events, social media, and online engagement forums. Submit locally preferred More detailed environmental alternative and resolutions of analysis and public engagement support to Met Council begins LOCALLY PREFERRED ALTERNATIVE STATISTICS APPROX. LENGTH: 14 MILES I AVERAGE DAILY RIDERSHO(2040): 5, 708-9, 7ao DEDICATEDIGUIDEWAY: 85-90 1% higher ridership Mother transit routes!are in the guideway (transit -only) *important to catalyze economic development NUMBER OF STATIONS: 20 includes Union Depot and Maplewood Mall Transit Center SCHEDULE: 5A-12A 17 DAYS/WEEK starts at 6o on Sunday FREQUENCY: RUSH HOUR: EVERY 10 MIN. NON -RUSH HOUR: EVERY 15 MIN, CAPITAL COST ($2021): $420M (+$55M for other transit routes in guideway) TRAVEL TIME: 14 MIN. one way, White Bear take-> Maplewood Moll TRAVEL TIME: 30 MIN. one way, Maplewood Malls St. Paul Central Business District TRAVEL TIME: 6 MIN. one way, St. Paul Central Business District-> Union Depot # PEOPLE LIVING IN STATION AREAS (2040): 60,200 #JOBS IN STATION AREAS (2040): 106,700 ANNUAL O&M COST ($2015): $7.8-8M # PEOPLE LIVING BELOW POVERTY IN STATION AREAS (2014); 11,700 CITY OF GEM LAKE, MINNESOTA CITY OF GEM LAKE,MINNESOTA TABLE OF :CONTENTS (CONTINUED) YEAR ENDED ❑ECEMBER 31, 2016. I. FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 1 BASIC FINANCIAL STATEMENTS STATEMENT OF NET POSITION 4 STATEMENT.OF ACTIVITIES 5 BALANCE SHEET - GOVERNMENTAL FUNDS 6 RECONCILIATION OF THE GOVERNMENTAL FUNDS. BALANCE SHEET TO THE STATEMENT OF NET POSITION - GOVERNMENTAL:ACTfVITIES 7 STATEMENT .OF REVENUES,: EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS 8 RECONCILIATION.OF THE GOVERNMENTAL FUNDS STATEMENT OF:: REVENUES, EXPENDITURES AND CHANGES:'1N FUND BALANCE TO THE STATEMENT OF ACTIVITIES - GOVERNMENTAL ACTIVITIES 9 STATEMENT OF NET POSITION - PROPRIETARY FUND 10 STATEMENT .QF REVENUES; EXPENSES AND CHANGE IN .NET POSITION - PROPRIETARY FUND 11 STATEMENT OF CASH FLOWS - PROPRIETARY FUND::':.: 1:2 NOTES TO BASIC FINANCIAL STATEMENTS ;;'' .":: :.::.. 13 REQUIRED SUPPLEMENTARY INFORMATION` BUDGETARY:.COM6 R1SON INFORMATION SCHEDULE. OF:REVENLJES'EXPENDITURES AND CHANGE IN FUND BALANCE - BUDGET,ANDACTUAL -GENERAL FUND 28 NOTE TO: REQUIRED<SUPPLEMENTARY INFORMATION 29 S UPPLEMENTA RYI NFORMATIO N NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET 30 COMBINING STATEMENT.OF REVENUES,: EXPENDITURES. AND CHANG.E.`Ii1I:.FUND BALANCES. 31 If. OTHER REQUIRED .REPORTS INDEPENDENT.AUDITORS'.REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENT A UDITING STANDARDS 32 INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE 34 SCHEDULE OF FINDINGS AN❑ RESPONSES 35 FINANCIAL SECTION tl*,.!�A CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT CliftonLarsonAllen LLP Wconnectcom Honorable Mayor Members of the City Council and Citizens City of Gera Lake Gem Lake, Minnesota Report on the Financial Statements 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. (the City):, Minnesota as of and for the year ended December 31, 2016, and fit e. related notes to the financial statements, which collectively comprise the City's.basic financial state-ments as listed in. the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in tl e.,United States of America; this includes the design, implementation, and Maintena'rice'af .internal contrpt,;relevant to the preparation and fair presentation of financial statements that are ftee'frorn material misstatement, whether due to fraud or error. u itors' Responsibility ........:.: Our responsbility is to expressopinions. on these financial statements based on our audit.. We conducted our audit in accordance witii 'auditing standards generally accepted in the United .States of America and the standards applicable to financial audits contained in Govemment Auditing Standards; issued by the Comptroller, General. of the; United_ States. Those: standards require that. we plan and perform the audit to obtain reasonai?le assurance`a-bout whether the financial statements are free from material misstatement: An.audit involves perforrning,procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The`. -procedures selected depend on the auditors' judgment, including the assessmeritbf the risks of material misstatement of the financial statements,. whether due to fraud or error. In making those risk. assessments, the auditor considers internal control relevant to. the Citys preparation ancf fair presentatign`of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal; control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of . accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements: We believe that the audit evidence we have. obtained is. sufficient and: appropriate to provide a basis for our audit opinions. !, l Mirdertl menYief dlioa3inrnarm 3 d 7L6.M1' -[i B,v'AL Honorable Mayor Members of the City Council and Citizens City ofGem Lake. Opinions In our opinion, the. financial statements referred to above present fairly', in all material respects, the financial position of the governmental activities, the businessAype activities, each major fund, and the aggregate remaining fund information of the City of Gem Lake, Minnesota as of December 31., 2016, and the respective changes in financial position and cash flows, where applicable; thereof for the year then ended in conformity with accounting principles generally accepted in the llnited States of America. Report. on Summarized Comparative. Information We have. previously audited the City of Gem Lake's 2.015 financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information; and we expressed unmodified audit opinions on those financial statements in our report dated May 10, 2016. In our opinion, the surnalarized :comparative information, presented ;herein .as of and .for the year ended December 31; 2015 is consistent, rn all niaterial.respects,"with the audited financial statements from which it has been: derived. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States:;'of'America required that the budgetary comparison information as listed in the table of contents iae presented to supplement the basic financial statements. Such information, a[theugh.not a part of th`e basic financial statements, is required by the Governmental Accounting. Standards; baard who considers``it to be an essentia[ part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedurese:ib' the required supplementary information in accordance with auditing standards generally ;accepted in the United States of America; which. consisted of inquiries .of managementabout the rhethods of preparing the information and comparing the information for consistency with managem.e4s responses. to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements, We do not express an opinion 6rprovide any.assurance on.the e information because the limited procedures do not provide us with sufficien.:..evidence to express an opinion or provide any assurance. Management had s .. orn tfed the management's discussion and analysis that accounting principles generally acceptein tile; Jnited States of. America require to he presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the. Governmental Accounting Standards. Board who considers it to be an essential part of financial reporting far placing.the:,basic financia[.stafements in an appropriate operations, economic, or historical context: Our opinion' on the basic .financial statements is not affected by this missing information. Supplementary Information Our audit. waEi conducted for the .purpose of forming opinions on the financial statements that collectively comprise the. City's basic financial statements. The accompanying combining non -major fund financial. statements, as listed in the table of contents, are presented for purposes of additional analysis and are not required part of the basic financial statements. Honorable Mayor ,Members of the City Couridl and Citizens City of Gem: Lake Other Matters (Continued) Supplementary Information (Continued) The combining non -major fund financial statements are the responsibility .of management and were derived from and relate directly.to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the. basic financial statements and. certain additional procedures, including comparing and reconciling such information directly to the. underlying accounting and other records used to prepare the financial statements or to the. financial statements themselves; and other additional procedures in accordance with auditing 'standards generally accepted in the United States of.Amerioa. In. our opinion, the supplementary information is fairly stated in all material respects > im. relation to the basic financial statements taken as a whole. Other Reporting Required by Go vernmen t Auditing Standards`` In accordance with Government Auditing Standards, we have also issued aur!report dated on our consideration of.the City of Gem Lake, Minnesota's internalcontrol over fnanciaCreporting 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: Tfat report is an integral part of an audit performed in accordance with Government;A'uditing Standards and should be considered in assessing the results of our audit. CliftonLarsonAllen LLP Minneapolis, Minnesota N BASIC FINANCIAL STATEMENTS ASSETS Cash and Investments Taxes Receivable. Special Assessments Receivable Accounts Receivable Due from Other Governments Accrued Interest Prepaid Items Internal Balances Capital Assets: Capita.i Assets Being Depreciated . Accumulated Depreciation Total Assets CITY OF GEM LAKE, MINNESOTA STATEMENT OF NET POSITION DEC EMBER 31, 2816. Governmental Activities Business -Type Activities Total $ 565,337 $ 39,25E $ 604,59.3. 21,317 - 21;317 491,60.1 8,253 494,854 6,828 15.,970 22,79.8 856 - 856 498 1.1207 1;705 926 ::r: ;:: ..` 2,526. 3,452 (397,252) 397,252 - 2,05.1.1294 617.,539:. 21668,833 {682,481 } (149257}.::'.., (831,738) 2,058,924 .. ,.: `` 9271746 21086,670 LIABILITIES Vouchers. and Accounts Payable 8;954 :.. - 8,954 Accrued Interest Payable 71033'.;::.::..:. - 71033 Due to Other Governments 3,065 3,065 Payroll Taxes and Withholdings 4s.4.... - 484 Unearned Revenue 11,300 - 11.300 Lang -Term Liabilities. Amounts Due Within One Year 60,000 Amounts Due in More than...One Year 715,000. Total Liabilities 805,836 NET. POSITION . Net lnvestment.in Capital Assets Restricted far Debt Service Restricted. for. -Park Improvements Restricted for Street Projects Unrestricted Total. Net Position .See accompanying Notes to Basic Financial Statements- (4) 593,813 181,785 3,194 39,872 434,424 468.,28.2 4591464 60,Q00 715,000 . 805,836 1,062,095 18'1,785 3,194 39,872 893,888 $ 1,253,088 $ 927,746. $ 2,180,884 CITY OF GEM LAKE, MINNESOTA STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2016 Net (Expense) Revenue and Program Revenues Changes in Net Position Fees, Charges, Operating Capital 6usiriess- Fines, and Grants and Grants and. Governmental Type FUNCTtONSIPROGRAMS Expenses Other Contributions Contributions Activities. Activities Total .GOVERNMENTAL ACTIVITIES Genera! Government S 169;340 $ 39;365 $ 81572 5. 799 5 (120,664) $ - $ (120,664) Public.Safety 119,793 - - - (11.9,793) - (119,793) Public Works 74,657 20.778 - 25;480 {28.;409) - (28,4fl9) Conservation and Development 39,595 - - {39,595). - (39,595) Interest and Fiscal Charges 34,842 - - - (34,842) - (34;942) Total Governmental Activities 438,237 .60083. 8,572 26,279 {343,3173) (343;303) SUSINESS-TYPE ACTIVITIES Sewer 42,720 45,117 - - 2;397 2,397 Total Primary Goverrlmerit $ 480,957 5 195;200 S 26,27.9 {343;303J 2;397 (340,906) GENERAL REVENUES Taxes: Properly Taxes, Levied for General Purposes :.. ;:.::.`. 224,896 224,896 Property Taxes;. Levied for Debt Service 69,261 - 69;261 investment Earrings (t_oss). (377) 4211 3,834 miscellaneous 1,248 14248 Total General Revenues) 41211 299;239 CHANGE 1N NET POSITION" : (48,275) 6,6Q8 (41.557) Net Position. -:Beginning of Year :::.::: ...:, 1,301,363 921,138 2,2221501 NET POSITION -:ENOOF.YEAR:1..,. S 1,253,088 $ 927.746 52,180,834 See accompanying Notes to Basic Financial Statements. (5) CITY OF GEM LAKE, MINNESOTA. BALANCE SHEET GOVERNMENTALFUNDS DECEMBER .31, 2016 (WITH SUMMARIZED.FINANCIAL INFORMATION AS flF DECEMBER 3.1, 2015) G.D. Capital 2016 Improvement Hoffman. Street Other Total General Plan Bonds Road Improvements Governmental Governmental 2015 Fund Series 2007A Fund Fund. Funds Funds Totals ASSETS Cash and Investments 22CO5 6. s 118,845 $ $ 132,932 5 93.004 $ 565,337 $ 462.297 Cash with Fiscal Agent -. - - - - 740.503 Taxes Receivable 16,541 4,776 - 2017 14.282 Special As Receivable - - 475,361 16,240. 491,601 541,856 Accounts Receivable. 6,828 - - - 6.u2 5,972 Due from Other. Governments. 85t3 - 85G 1,153 Accrued InterestReceiva6fe 565 243 (943) 393 240 498 2,474 Due from Other Funds - - - - - 126,506 Prepaid Items 926 - 926 633. Total Assets S 245.272 S 123.864 S 474.418 S 133,325 5: .... 109.484 $ 1,087,363 . $ 1,895.676 LIABILITIES,: DEFER RED.INFLOWS OF RESOURCES AND.FUND 9ALANCE9 LIABILITIES Vouchers acid Accounts Payable $ 8,954 $ $ S 8;954. 5 20,233 Payroll Deductions .454 - 484 387 Due to. Other Govemments. 3,065 3,065 14,035 Urleamed Revenue 11,3U0 11,300 11,300 Due.to Other Funds 397;252'.. 397,252. 126,506 Total Liabilities 23;8t13 397;252<:....;. 421,055 172:461 DEFERRED INFLOWS OF RESOURCES Unavailable Resources 15A37 2,849 A68,851 - 15;751 503,088 550,862 FUND 6AiANCFS Nonspendable .:926 926 633 Restricted: -DehtService - i21; 5 - 56,667 171,682 867,210 Palk Improvements. - - - 39;872 39,a72% 39,462 Street Projects. 3;194 3,194 3,161 Assigned:. Capital lmprovemenis Benefiting Individual Property Owners 133,325 - 133.325 1$2;336 Unessigned 205,906 (391.085). - (185,779) 129,651 Total Fund Balances: .....::::.::: ..... 206,832 121.015 (39.1,685]. 133,325 .93,233 763,220 1,172,353 Total LEa6ilities;"Deferred lr&ws Resources,:and Fund Balances $. 2k6,272 S 123,8fi4 3 474,418 5 133,325 S 109,484 5 1,087,363 $ 1.895;676 :See accompanying Notes. to Basic Financial Statements. (6) CITY OF GEM LAKE, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT ❑F NET POSITION GOVERNMENTAL ACTIVITIES .DEC EMBER 31., 201.6 TOTAL FUND BALANCES FOR GOVERNMENTAL FUNDS Total net position reported for governmental activities in .the statement of net. position is different because;: Capital assets. used in.gover.nmental activities are not financial resources. and, therefore, are not reported.in the funds. These capital assets consist cf: Buildings Office: Equipment Infrastructure. A.ccum u lated. Dep reciation Some of the City's property taxes and special. assessments will be`:.::.. collected after year-end, but are .not available:, o0n.enough to pay forth..e current period's expenditures and, therefore; are..reparted:as.unavailat le.. resources in the governmental -funds. Some liabilities .are not due. and payable in the. current peritid and, therefore; are not reported as.fund'liabilities. Balances of year.-end.are. General Obligation Bgpds Payable: Accruedlnterest on Lorig-Terra aebf':, TOTAL NET POSITION :OF.GOVERNMENTAIL ACTIVITIES See accornpanyrng Notes.: to Basic Finandaf.Statements: (7) $ 902232:. 12,895 1 136.167 (682,481) $ 163,220 1.,3681813 503,088. (775,000) (7,033) (782103.3) $ 1;253,088 CITY OF GEM LAKE, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND. CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31,.2016 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED. DECEMBER 3.1, 2015) REVENUES Takes Special Assessments Intergovernmental Licenses and Permits Fines and Forfeits Pu61lc Charges For Services Ivlisr.Cllaneous; Earnings:{Lass.] pn lrivestmerlts other 7nlal Revenues EXPENDITURES Curreni, Genera! Government POW, Safety Public Works Conseivalion and Development Ca pi INouIlay Debt Servlce: Principal Interest and Fiscal Charges Detitissuance Costs TdlaI Lxpenditures EXCESS -CIF REVENUES OVER (UNDER) EXPENDITURES G.O. Capital 2016 Impmvement Hoffman Streel Other Total General Plan Bands Road Improvements Governmental (3overnmenlal 2015 Fund Series 2007R Fund Fund Funds Funds Totals $ 223,118 $ 69.261 $ - S S. - 5 292,379 799 65,938 14,383 Msuo 9;796 - 9;796 34;108 - - 34,108 3.210 - 31210 5;765 - •• - 5;705 1,701 943 (5,024) 969. 1,614 {377) M795 11,795 290.232: 70.204 60,914 989: 15,397 437,736 134,037 - - 134,037 11R.793. - - 119,793 37,508 51.122 - 323,988. - - 323.988 - 745,000 - 746,000 35,421 - 35,421. 342,460 . .. 780,421 323,988... 1,446.869 (52;228) (71p;2'E7).:.' ...... .{263,074j 989 15307 (1,009133) See accompanying Notes to Basic Financial Statements. (8) S 251'341 42,427 13;348 39,222 2.182 12,92T 3,350 53,969 418.766 124.999 115,I15 1621228 44;647 118;855 15,0ED0 32,904 29;985 583;734 (164.968) 7-mo01] 610,632 562,321 $ 1,172,353 CITY OF GEM LAKE, MINNESOTA RECONCILIATION.OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL ACTIVITIES YEAR ENDED DECEMBER.31., 201E NET CHANGE IN FUND BALANCES - TQTAL GOVERNMENTAL -FUNDS $ (1,00.7,669). Amounts reported. forgovernmental. 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 thecost is allocated over their estimated. useful lives and reported as depreciation <` expense, Capital Outlays $ 329;012;:. Depreciation Expense 65,950) :.:;.. 203,053 Delinquent and deferredproperty taxes and special assessments ..: ... receivable will be collected subsequent to.year-end, but are available soon enough to pay for the current period's expenditures .and; therefore, are unavailable -resources in the 9:overnmental funds. .Unavailable Resources - December.31., �015.:.: 550862 Unavailable Resources -.Decemb.er.31, 2016`.,;:,. 503,088. {471774} The governmental funds report bond proceeds as financing sources, while.repayment of bond -principal is reported as an expenditure. In the statement of.net pasition; however;. issuing del7Jncreases fang -term liabilities and does not affeet:.the statement'of.activities: and repayment of principal reduces.the liability;; Also, governmental funds report, the effect premiums::an d ,d spounts when debt is first issued, whereas these amounts are defermd and. amortized in .the statement of activities. Interest::is" recognized as an.e�penditure in the. governmental funds when it`is;,due. In the statement.9f activities, however, interest expense is recogniz60:as it accrues., regardless of .when it is: due.. The net effect. of these differences in the treatment of general obligationbonds and related items is. as follows: Issuance of Bands Payable Repayment of Bond Principal 7451000. Change.in Accrued interest Payable 6,323 Amortization. of Bond ❑iscount {5,744} 745,579 CHANGE IN NET POSITION. OF GOVERNME..NTAL ACTIVITIES $` {46,811) See accompanying Notes to Basic Finan.dal.Siatemonts: e;9} CITY OF GEM LAKE,. MINNESOTA STATEMENT OF NET POSITION PROPRIETARY.FUN❑ DECEMBER 31, 2016 ASSETS Cash and Cash Equivalents Customer.Accounts Receivable Accrued Interest Receivable. Special Assessments Receivaf le Due From Other Funds Prepaid Items Total Current Assets . Capital. Assets:. Utility Plant in Service. .Accumulated Depreciation Net Capital Assets Total Assets See accompanying Notes: to Basic Financial Statements, {1 aj Sewer Utility $ 3.9,256 15' 970 1,2.0.7 3,253 397.252 2,526 459,464 617,539 (1449,257) 468,282 927;746 468,282 459,464 $ 927,.746. CITY OF GEM LAKE; MINNESOTA STATEMENT OF REVENUES, EXPENSES AND. CHANGE IN NET POSITION. PROPRIETARY FUND YEAR ENDED DECEMBER 31, 2016 OPERATING REVENUES Public Charges for Services OPERATING EXPENSES ❑perating Expenses Depreciation Total Operating Expenses OPERATING INCOME NONOPERATING REVENUES Interest Revenue CHANGE IN NET POSITION Net Position - Beginning of Year NET POSITION - END OF YEAR See accompanying Notes to Basic Financial Statements- Sewer Utility 45,117 r ■li 921,138 $ 527,746 CITY OF GEM LAKE, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUND. YEAR ENDER DECEMBER2 31.,. 2816 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Utifty Customers Cash Payments to Suppliers for Goods and Services Net Cash Provided by Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund Loans CASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments NET INCREASE IN CASH AND CASH EQUIVALENTS. Cash.and Cash Equivalents - Beginning of Year CASH AND CASH EQUIVALENTS - END OF YEAR See accompanying (Votes to Basic Financial Statements. (12) Server Utility 412,733 $ 39;256 2,397 12,457 6,25E 312 (1.84) (15) (2,460) $ 1$,76.3 CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS. DECEMBER. 31, 2016 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Gem Lake (the City), Minnesota 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 Asrequired by U.S. generally accepted accounting principles, the financial statements of .the. reporting entity include those. of the City of Gem'. ake and its component units. A component. unit is a legally separate entity for' which' tfe primary government is financially accountable, or for which the exclusion of the c&hob rent unit would render the financial statements of the primary. ,gove rnment misleading The criteria used to determine it the primary. government. is finlghcq ally accountable for camporient include whether or not. the primary government ''appoints the voting major'itj of the potential component unit's board, is: able to Impose its will on:fYte 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`uriit` Based on these criteria; there are` nv: organizations; considered to be component units of the City B. Basic Financial Statements 1. Government -Vide Statements The .government--wide:=fiinancial statements .(i.e., the statement of net position 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 interna[':activities. ' Governmental activities, which normally are supported by taxes and intergovernmental revenues; .are reported separately from business -type activities, iAich rely to a significant extent on fees and. charges to external parties for support.. (13) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC: FINANCIAL STATEMENTS ©ECEMBER 31., 2016 NOTE.'I SUMMARY OF SIGNIFICANT. ACCOUNTING POLICIES (CONTINUED) B. Basic Financial Statements (Continued) 1. Government -Wide Statements (Continued) in the government -wide. statement of net position, bath the .governmental and business -type activities columns: (a) are presented on`> a. consolidated basis by column; and. (b). are reported on a full accrual, ecor orriic resource {oasis, which recognizes all long-term assets and receivables ;as well as. long-term debt and. obligations. The City's net position is reported im lree: parts: (1) net investment in capital assets; (2) restricted net position; and (3j''unresi''lcted net position. The City first utilizes restricted resources:to finance gyal1NAng activities. 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 "birect expenses are #hose ' that are clearly identifiable with a specific function or. activity: Program revenues include: (1) fees, fines and charges paid by the recipients: b : goods, services, or privileges provided by a given functivn.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 .al[ taxes, :are presented as general. rever!ties. 2. Fund Financial $tatements The. fund .financial statements provide information about the City's funds. Separate statements for each :;fund category;, governmental and proprietary, are presented. The err pf asis of. governrr ental..ancl -propriota y fund financial statements is on major individual governmental. acid enterprise funds, with each displayed as separate cold. i ris in fh`e:fi .nd financial statements. All remaining governmental and enterprise funds'ateaggregated and reported as nonmajorfunds. (14) CITY OF GEM LAKE, MINNESOTA NOTES TO. BASIC FINANCIAL STATEMENTS DECEMBER.3'1, 201.6 NOTE.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED.) B. Basic Financial Statements (Continued) 2.. Fund Financial Statements (Continued) 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 genera[; government, except those required to be accounted for in another fund. G:O. Capital Improvements Plan Bonds,::Se.ries20©7A — The G.O. Capital Improvement Plan. Bonds Series 2007A ` l=und accounts for all debt service activity related to the 2007A bond. Hoffman Road Fund — The Hoffrrian Road Construction Fdhd accounts for al€ activity related to the. reconstruction .activities of Hoffman Road.:%` Street Improvements Fund — T. e`TStreet 1f6provements Fund is used to account for the accumulation of resources tlat;are restricted, committed, or assigned. to expenditures for capital;; o,ut€ays,..includng the acquisition or. construction of capital facilities. The City reports the following;niajor proprietary fund:. Sewer Fund =;The sewer find:accounts far customer sewer service charges that are used to #inance,;sewer operating expenses. C. Measurement Focus aricl Basis of Accounting The government -wide :ar d``proprietary fund financial. statements are reported using the economic resources teasurement focus and the accrual basis. of accounting. Revenues are recorded wh6 'earned, and expenses are recorded when a liability is incurred, regardless':of the. timing of related cash flows, Property taxes are recognized as revenues in the; year for' which they are levied. Grants and. similar items are recognized as. revenue as.'soon as. al€ eligibility requirements imposed by the provider have been niet, Governmental'; fund financial statements are :reported. using the current financial resources, ri'easurernent focus and the modified accrual basis of accounting: Revenues are recognized as soon as they are both measurable and available. The City considers all revenue.s.to be available if they are collected within 6..0 days after the end of the current period. Property and other taxes, licenses, and interest are all considered to bs 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 otherfinanc€ng sources. (15) CITY OF GEM LACE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus and Basis of Accounting (Continued) 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 Band's principal ongoing operations. The principal operating revenue of the. C.ity'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 and expenses not meeting this definitio6.,. Fe reported as nonoperating revenues and expenses. 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 ,#Yie' 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 .fromanother; fund shown as interfund receivables in the advancing fund in the governrr entai.fur d financial statements, and an interfund payable in the fund with, ke= deficit, until adequate resources are received. These interfund payables are eliminated for statement of net position presentation. Investments are. stated, at fair value as of the balance sheet date.. Interest earnings are accrued at the;l}glance sheet date. For purposes of:lkie statement of cash flows the Proprietary Fund considers all highly H661 d investmen s' with a maturity of. three months or less when purchased to be ;cash equivalents.,A[['of the cash and investments allocated to the proprietary fund types have originai:`rinaturities of 90 days or less. Therefore, the entire balance in such fund types is considered=cash equivalents. F. Prepaid. Items 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 material prepaid items has been segregated as nonspendable. (16) CITY OF GEM LAKE, MINNESOTA. NOTES TO BASIC. FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. 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 collb..ctian 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. S.uchlaxes 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 5, of; each calendar year. Personal property taxes are payable by taxpayers on February'28 acid June 30 of each year. These taxes are collected by the County , and remitted to ;,the City. on or before July 15 and December 15 of the same year; delinquent collections for November antl December are received the following January'The' City> has no ability;, to enforce payment of property taxes by.propertyowners. The County possesses.this`authority. Within the govern: enfal fund financial statements; the City recognizes property tax revenue when< t.becomes both rrmeasurable.and available to finance:expenditures of the current period:' In practice;, .current aril defir;quent taxes and State credits. received by the City in Jbly, December and the following January are recognized as revenue for the currentyear'Taxes and-credits:not.:re.ce.ived at the year-end are classified as.delinquent and due from Caunty'taxes r6c ::- a> le. The portion of delinquent taxes not collected by %the_City; in January is fully offset by deferred inflows of resources because it is not available to`:frnancEi current experiditures. Deferred inflows of resources in governmental activities is susceptible toJull accrual on the government -wide statements. The City's proper#y tax revenue includes payments from the Metropolitan Revenue Pi5tribution (Fiscal Disparities Formula) per Minnesota Statute 473F. This statute. provides a means.of spreading a portion of the taxable valuation of corn mercia Vindustrial 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 2616 totaled $5,100. Receipt of property taxes frorn this "fiscal disparities pool" does not increase or decrease total tax revenue_ (17) CITY OF GEM LAKE, MI.NNESOTA. NOTES TO BASIC FINANCIAL. STATEMENTS DECEMBER $1, 2016 NOTE 'I SUMMARY CF.SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 1. 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 term 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 samemanner as property taxes.. Property owners are allowed to.(and often do) prepay future installments without interest or prepayment. penalties. Within the fund financial statements, the revenue from.. special assessments is recognized by the City when it becomes,. 'measurable and availableto finance expenditures of the current fiscal period: lrpractice, current and'>delinquent special assessments received by the City are recognized .as revenue f&"''the current year. Special assessments are collected by; the County` and remitted by Decemiaer 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 inflows of resources. Deferred inflows 'af resources in governmental activities is susceptible to full. accrual on the .government -wide statements. Once a special assessment roll 'is., adopted, the aWunt attributed to each parcel is a lien upon that property 6 til full paymei t is made or the amount is determined to be excessive by tfe'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, agr oltural or seasonal recreational lard in which event the property is subject to such;sale aft r five years. (18) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS ©ECEMBER 31, 2016 NOTE 1 SUMMARY OF SIGNIFICANT.ACCOUNTING POLICIES (CONTINUED) 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 o€ 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 (e., those reported by governmental activities) the City chose to ; include all such items, egardless of their acquisftion date or: amount. Depreciation on exhaustible assets. is recorded as an allocated expense in the statement of activities with accumulated depreciation'reflected in the statement of net position: Since surplus assets are. sold for an immaterial amount when declared as no longer needed for City purposes.., np;.salyage"value is taken. into consideration for depreciation purposes. Capital assets not being depreciated include construction in progress. Depreciation Estimated Assets Method Useful Life suildirigs Straight -Line 40 Years Ckiice Equipm66 Straight -Line 5. -10 Years Quity Systems.:; Straight -Line 20. - 50 Years Infrastructure.:Straight-Line : 20 -.5D Years K:. Long -Term e0biigations In the entity -wide financial statements, long-term debt and other long-term obligations are reported as_;Iiabilities' in the applicable: governmental activities. Bond premiums and. .. discounts are amortized over the life of the bonds using time straight-line method. Bond issue costs. are expensed as a current period cost. In th6 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. CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTEA SUMMARY OF SIGNIFICANT.ACCOUNTING.POL.ICIES (CONTINUED) L. Net PositionlFund Balance. Net position. represents the difference between assets and liabilities in the government - wide and proprietary fund financial statements. Net investment in capital assets consists of capital assets, net of.accumulated depreciation., reduced by the outstanding balance of any long-term debt used to build or.acquire, the capital assets. Net position is reported as restricted when there are lirnitations imposed on. ;#heir use through. external. restrictions imposed by creditors, .grantors, or laws. or regulations of other governments; In %the fund financial statements; governmental funds''report fund balances in the classifications that disclose constraints for which amounts ir';those funds can be spent. These classifications are as follows: Nonspendable — portion of fund balances'reiated to prepaid items, inventories, long- term receivables, and corpus on any permanent fund, Restricted — funds are constrained.';€ram %out.sidd. parties (statute,. grantors,. bond agreements, etc.). Committed --- funds are established and`:..:rno; lified by a'resolution approved by the City Council. Assigned --- consists of internally`iiriposed constraints approved by the City Finance Director. Unassigned - is the residual;elassificafion`for'the. General Fund and also reflects the negative residual'amounts in other Ends. When an expenditure is`; r curved for purposes for which both restricted and unrestricted. fund balance` is availabj.e '`it is. the C.ity.'s policy to use restricted first, then unrestricted fund balance.. When an expenditure is incurred- for purposes for which committed, assigned and unassigned amounts are available, it is the City's policy to use committed first, then assigned;'and finally unassigned amounts. Interfund Trap$actions`:` Intertund 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 experditures/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 position and statements of activities. (2Q) CITY OF GEM LAKE, M€NNESOTA NOTES TO BASIC FINANCIAL. STATEMENTS DECEMBER 31, 2016 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 position 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 fo< 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 Icy. insurance, surety bond, or collateral. The market value of collateral pledged must equal 119% of the deposits not covered by insurance or corporate surety ° bonds. Authorized collateral include: US. government treasury bills, notes; or bonds; issues of.a U.S. govern m..: t agency; general obligations of a state or local government rated "A"' or better; revenue. obligations of a state or local government rated "AA" or letter; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time; deposits insured by a `federal agency. .Minnesota Statutes require securities pledgeel'as. collateral be held in safekeeping in a restricted account at the Federal, lreserve Bank 'or'in. an account at a trust department of a commercial bank or ofbier`: firiar cial institution' not owned or controlled by the. depository. At December. 31, 2016, the carrying, amount of M City's deposits were $25'1,772, the entire amount of which was insured o'rlcol€ateralized. (21.) CITY OF GEM LAKE, MINNESOTA NOTES. TO.BASIC FINANCIAL.STATEMENTS DECEMBER 31, 2016 NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments The.City may also invest idle funds as authorized by Minnesota Statutes as follows: • Direct obligations or obligations guaranteed, by the United States or its agencies.. • Shares of investment companies registered und6r`` the Federal Investment Company Act of 1940 and received the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency and all of the investments have a finial maturity of 13 months or less:.. ■ General obligations rated "A".or better, revenue obligafioris.rated "AA" or better. • General.obligations of the Minnesota Housing Finance Ageni~y,rate "A" or better. • Bankers' acceptances of United:.. States banks eligible far purchase by the Federal Reserve System. • Commercial paper issued by United States hanks corporations or their Canadian subsidiaries, of highest quality category' .by a least two nationally recognized rating agencies, and maturing. in 270 days,'or less. • Guaranteed investment confracts .:guaranteed by United States commercial banks or domestic branches W.f reign: banks or United States insurance. companies if similar debt 'gbligat dhs of thb issuer or the collateral pledged by the issuer is:ii -the top two rating categories, • Repurchase or reverse purchiase agreement and securities lending agreements firiancial institutions. qualified' as a "depository" by the government entity, with banks`..that are `.members.. of ,the Federal Reserve System with capitalization exceeoing.$.1.O,OCIa,o o, a'primary reporting dealer.in U.S. government securities to the I ederal Reserve Bank of New York, or certain Minnesota securities b"reker-dealers; • Any security which is an abligation of a school district with an original maturity not exceeding' 13 months and (i) rated in the highest category by a national bond. rating. service (H) enrolled in athe cedit enhancement program pursuant to Mintlesa#a Statute 4126C.55 Custodial, Credit Risk For on 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 coil ateral securities that are in the possession of an outside party. The City's investment policy doesn't specifically address custodial credit risk. t22j NOTE 2 CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS.. ❑ECEMBER 31, 2016 ❑EPOSITS. AND INVESTMENTS (CONTINUED) B. Investments (Continued) Interest. Rafe 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. Information about the sensitivty of the fair values of the. City's investments .to marked, ntetesf rate risk flut;tuations is provided by the following table that shows the distribution ;_of. the City's investments by maturity: Matuii �u —ri in Years investment TXpe. Total iess;Than i 1 to 2 2.to 5 5 to 10 Rating Negotiable Certificates of Deposit: 5 354;000 : ' $:""100 000. 5 21.4.000 '$:.." =::A0,000 S Not Rated Money Markets 3,087 3,087 Aaa1AAA & 357,087:' $ 103,087 5 214,000. $ `41000 $ - Credit Risk Generally, credit risk is the risk that an issuer'af an investment will not fulfill its.obligation to the holder of the investmo t: This is measured by the assignment of a rating by a nationally recognized statistical rat ng,:organizatioOhe: City's investment policy doesn't specifically address. credit risk The. fo lowing. charE summarizes year-end. ratings for the City's investments as rated by Moody's. Investors5,erv"ices: Government: Negotiable-,'d Goldman 5� Capital One Typo tney Market[ Ba it Credit Quality Rating Amount $ 3,087 140, 00.0 214,000 354, 000 $ 851,087 (23) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED) Concentration of Credit Risk The City places no. limit on the amount that the City may invest in any one issuer. The following is a list of investments which individually comprise.more than 5 . % of the City's. total investments: Investment Type. Amount Percentage Negotiable Certificates of Deposit Goldman Sachs Bank Co. $ 14o ddb 39.21% Capital One. Bank CD :21.4 [Joo 59.93%. Fair Value Measurements The City uses fair value measurements to recerd fair vaiue adjustments to Certain asset and liabilities and to determine fair value disclosures. The City follows an accounting standard'; which defines fair value, establishes framework - for, measuring. fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value; and requires . expanded disclosures about fair value measurements. In accordance with this s:6ndard, the City has categorized its investments; based on the priority;;of inputs to the Val ua#ion technique into athree-level fair value hierarchy. The fair V.,plue'ki;er'prphy gives;' -the highest priority to quotes and prices in active markets for identical assets or'liabilitios.(Level 1.) and the lowest priority to unobservable inputs: (Level 3}>If the>inputs used to measure the financial instruments fall within different;;leveis. of the hierarchy, the categorization is based on the lowest level input that is significant to- the fair value measurement of the instrument. Financial<assets and liabilities recarded`;on the combined statements of financial position are categori*_based,:an the::;ir puts :to`fhe valuation.techniques as follows: Leuel;7`- Financial assets and Habilities are valued using. inputs that are .urnadjusted 'quoted pnces. .in active, markets accessible at the measurement date of identical financial "assets and liabilities. vel 2 — Financial assets and liabilities are valued based on quoted: prices for similar assets or inputs. '1hat are Observable, either directly or indirectly for substantially the full term,through. corroboration with. observable market data. Level 3':'Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset, inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the.asset. (24) CITY OF GEM LAKE, MINNESOTA NOTES. TO BASIC FINANCIAL STATEMENTS DECEMBE.R 31, 2016 NOTE 2. DEPOSITSAND INVESTMENTS (CONTINUED) The levels of investments at December.31., 2016, areas follows:. Investment. TYPe Level 1 Level 2 Level 3 Total Negotiable.Certlficates of Deposit with Maturities at Purchaseof Greater Than I Year S. - $ .354,000 $ - $ 354,400 $ - $ 354D.00. $. - 354,000 Investments Measured at Amortized Cost 3,087 $' 35.7,087 NOTE 3 c APiTAL ASSETS Capital asset activity for the year ended Decerril7er 31;°015 was as follows:. Beginning",:'' Ending Balance increases Decreases . Balance Governmental Activities Capital Assets Not Being Depreciated: ':..:.: Construction in Progress $: 94 367. :.:; $„ 3291012 $ (423,379}. $ - Capital Assets Being. Depreciated: Buildings 902,232' - 902;232 Office Equipment '; ;: 12,895 - - 12,895 .Infrastructure 712,788 423,379 - 1,136,157 Total Capital Assets..Be ng D.epreclated • 1.627,91:5 423,379 - 2,051,294 Accumulated Deprepmfion:::: Buildings (177,530) (22,047) - t199,571) Office.Equipment (9,986) (1,243.) - (11,229) tnfra$truc#ure:.:.:; :. (429.006) (42,669) -. (4.71,675) Total Accumulated.Depreciation (616,522) ` (65,959) - (682,481) Net. Capital Assets:-,- Capital Activities $ 1;105,7$0 $ 68.6;432 $ (423379) $. 1,358,813 Depredation expertise was charged to the governmental functions as follows: General Government $ 23,290 Ruhlic Works':::::' 42,669 'dotal. Depreciation - Governmental Acti.vities $ 65959 Beginning Ending Balance: Increases Decreases Balance Sewer Utility. Capital Assets Being Depreciated: Infrastructure $ 617,530 $. - $ - $ 617,539 Less:: Accumulated Depreciation (135,800) (12.457) - (149,257) -.. Net Capital Assets. -'Sewer Utility $` 480,739 $ 457 7 $ 468,282 (25) CITY OF GEM LAKE,. MINNESOTA NOTES TO .BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 I{ NOTE CITY INDEBTEDNESS City indebtedness at December 31, 2016 is composed of the following; Final Issue Maturity Interest Original Balance Date Date. Rate Issue 12/31/16 Governmental. - Activities: .General Obligation Bonds: 2007kCapital Improvement Bonds 06120/2007 02/01/2023 4:00-4:50% $ 8500.0. - 201,5A Refunding Bonds 0611.712015 02/01/2028 1.25-2A0% 775,000 775,000 Total S 1,625,000 5 775.000 The following is a schedule of changes in City . indebtedness for the year ended December 31, 2016: Balance Balance Due Within 12431115 "-..:Additions Reductions 12131I.16 One Year Lang -Term Debt. Governmental Activities General.flhligaGon Bonds 2007A Capital Improvement Bonds $ 745,000 E - $ 746,000 $ - 201.5A.Refunding Bonds -;-%.7751000 - 775.000 .60:000 2015A Unamortiied Bond Discount {5;744) (5,744) Total Long -Term Debt $ :.1j514125fi .::$ 5 ; : 739.256.. $ T75,000 $ 60,000 All long -terra bonded indebtedness outstanding di 0.edember 31, 2016 is backed by the full faith and.credit of the`.City ,including special assessment bond issues. Minimum annual''principal and iinterest'payments required to retire long-term debt are, as. follows: .... Year Ending D:e6'emtier`31:;:::.::.: .' Principal Interest Total 20.17 $ 60,000 $ 1.6,505 $ 76,505 2018.:. K000 15,755 75,755 201.9;:':`.;;. .65,000 14;828 79,828 2020 ;:;'.;::;:. 60 000 13,765 73,765 2(l21 60,400 12,640 72,540 2022-2026 330,000 41.,452 VI A52 2027-2031 140,000 4,060 144P060 "l otal $ 775,000 $ 119,005 $ 894,005 {26} CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 4 CITY INDEBTEDNESS (CONTINUED) Description and Restrictions of Long -Term 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. General Obligation Refunding Bonds - In 2015 the City issued General Obligation Crossover Refunding Bonds to refund the 2007A General Obligation Bonds. The City was responsible for the February 2016 payment and after; the',erassover occurred. and the . escrow will be. responsible for the remaining principal and interest payments of the 2007A bond, resulting in a defeasance of the bond. The. refuhding.resulted in. a net present value cash savings of $41.,308. NOTE 5 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY Deficit Fund Balances The: City has a deficit fund balance at Decerb66 31-k 16 as follo►nis-. Fund Balance Deficit Hoffman Road Fund $ 39 i 685 The City intends to fund this deficit through fbture tax levies transfers from other funds,. and various other .sources: NOTE 6 INTERFUND BALANCES AND ACTIVITIES Due To/From Other Funds Individual f. d.receivable,and payable balances at December 3.1, 2016 are as follows; Interfund Interfund Receivable Payable Governmental Activity:: Hoffrrsan Road Fund - 391252 Business=Type Activity; Sewer 397,252 - 3971252. $ 397,252. InterPund receivable and payable balances represent the elimination of negative cash between funds, (27) CITY OF GEM LAKE,..MINNESQTA NOTES TO BASIC FINANCIAL.STATEMENTS DECEMBER 31, 2016 NOTE.? 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 loss, 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. NOTE 8 FUND BALANCES .. Certain portions of fund balance are. restricted to provide for funding on.. certain long-term liabilities or as required by other outside parties 'Restricted, Committed and Assigned fund balances at Decernber 31, 2016, are as follorrvs: A. Restricted for debt Service -- This`:.represerts amounts which are restricted for future debt payments. B. Restricted for Park Improvements. — Represents amounts which are received through park dedication; fees and , are restricted. for park acquisitions and impmernents. C. Restricted for..Street Projects.:`-: Represents amounts which are received from (28) REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON INFORMATION CITY OF GEM LAKE,. MINNESOTA SCHEDULE OF REVENUES., EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31,. 2016 REVENUES Taxes. Special Assessment Intergovernmental Licenses and Permits Fines.and Forfeits Public Charges for Services Miscellaneous: lnterest Other Total Revenues EXPENDITURES General Government` Public Safety Public Works Conservation .a.nd Development Total Expenditures NET CHANGE IN FUND BALANCE..: Fund. Balance:- Beginning of.Year FUND BALANCE -END OF YEAR _ Budgeted Amounts Actual Variance with Original Final Amounts Final Budget 225,026 $ 225,026 $ 223,118 $ ('1,908) - - 799 799 10,950 10,950 9,756 {1,154) 26,525 26,525 ...: 34,108 7;583: 3,000 3,000.:; `;, ':::::: 3,210 210 5,719 5.;719' 5,705 (14) 1,950 ::1;950 [.;701 (249) 700 700 111795;.. 11,095 273,870 .:..: 27.3,870 290,232. '. , 16,362 129,300 129;300 134, 037 ..(4,737) :.122,270 122,270 119,793 2,477 60;2QQ 60,200 37,508 22P692 421100:.... 42,1.00.. 51,122 (.9,022) 353,870. :....- .:.:. 353,87E .342,460 11,410 $ (80000} $ (80.000) See accompanying Note to Required Supplementary Information. (28) (53.692). $ .26308 . 260,524 $ 206,832 CITY OF GEM LAKE, MINNESOTA. NOTE TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2016 STEWARDSHIP COMPLIANCE AND. ACCOUNTABILITY - BUDGET The General Fund budget is legally adopted on a basis consistent with U.S.. generally accepted accounting principles. {29} SUPPLEMENTARY INFORMATION CITY OF GEM LAKE, MINNESOTA COMBINING BALANCE SHEET NON MAJOR.GOVERNMENTAL FUNDS ©ECEMBER 31, 2016 .Capital Projects Funds Debt Service Funds. _ G,O. G.O. Parks and Scheuneman Improvement Improvement Total Playground Road Bonds Bonds Nonmajor Fund Fund Series:2004A Series 2006A Funds ASSETS Cash and Investments $ 39,754 5 3,186 5 - 5 50,06.4 $ 93;004 Spe6ai Assessments Receivable - - 8 835 7,405 16,240 Accrued Interest Receivable 118 8 - 1:14 240 total.Assets S 39.872 . $ 3,194 $i ....::. 8.835 $ 57;583 S 1091484 LIABILITIES,. DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Due.tp Other Funds S 5 _ 5 - :,:...- $ _ DEFERRED INFLOWS OF RESOURCES Uhavailabie Resources - 8,835 6,915 15;751 FUND BALANCES Restricted: Park.Improvements 39. 2...:.::i:;.:::. - - 39,872 Street Projects - 3,194 - 3,194 Debt Service ..::...::. - - 56,667 50,667 Unassigned Total Fund Balances 39;872 3,194 - 50,667. 93;733 Total Liabilities, Deferred Inflows of Resources, and Fund Balances . $ 3%872..-:. $ 3,194 $ .8,835. 5 571583 $ 109,484 (30) CITY OF GEM LAKE, MINNESOTA COMBINING STATEMENT ❑F REVENUES, -EXPENDITURES AND CHANGE IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2016 Capital Projects Funds Debt Service Funds. G.D. G.Q. Parks add 56heuneman Improvement: Improvement Total Playground Road Bonds Bands Nonmajor Fund Fund Series 2004A Series.2006A Funds REVENUES Special Assessments $ - $ - $ 162. $ 14,221 $.14,383 Earnings (Loss) on Investments 4.10 33 103 468 1,014 Total Revenues 410 33::::.:: 265 14,689 15,397 EXPENDITURES Capital Outlay - - - - - Total Expenditures: EXCESS OF REVENUES -OVER (UNDER) EXPENDITURES 410: 33 265 14,699 15,397 OTHER FINANCING SOURCES Tansfets In - - 1,464 - 1.464 NET CHANGE IN F.UN❑ BALANCES 4.10::. 33 1,729 14,689 16,861 �. Fund Balance - Beginning of Year 39;462 ". -A,161 {1,729) 35,978 76,872 FUND BALANCE - END OF YEAR. $ .:=i:39,872 $ 3,194 $ - $. 50,667 $ 93.733 . (31) v Clifton LarsonAllen CliftonLarsonAlln LLP CLAEonnectoom INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL. STATEMENTS PERFORMED IN .ACCORDANCE WITH GOVERNwNrAUDITING STANDARDS Honorable Mayor and Members of the City Council City of Gem Lake, Minnesota We have audited, in accordance with the auditing standards,generally accepted:in the United States of America.and the standards applicable. to financial audits contained in Covernmmnt Auditing Standards issued by the Comptroller General of the United States. tl e financial statements of the governmental activities, the business type activities, each major fund-, and the aggregate remaining fund information of City of Gem Lake, as of and for the year ended December 31. 2016, and the related notes to the financial statements, which collectively comprise City of `tern%_ . ake's basic .financial statements, and have: issued our report thereon dated.:.. Infernal Control Over Financial Reporting;.: In planning and performing our audit of the financial statements; we considered City of Gem Lake's Internal control over financial reporting (internal control)` to determine the :audit procedures that are appropriate in the circurristances; ;'for . the pdW%o `of expressing our opinions on the financialstatements, but. not for the purpose of`expressing;an opinion on the effectiveness of the City's internal control..Accordingly, we dp; not expressian opinion on the effectiveness of the City's internal control. Our consideration of internal,control wasfor'the limited purpose. described in the preceding paragraph and was not designed to identify all deficiencies in` internal control that might: be material weaknesses or significant deficiencies and ,'tfierefore, material weaknesses or significant deficiencies may exist that Were not identifi .... However, as `described in the accompanying Schedule of Findings and Responses, we identified. a deficiency in internal`:cantroI that we consider. to be a.material weakness. A. deficiency„in, intemal control, exists when the design or operation of a control does not allow management or e riployees, in.1he normal course of performing their assigned functions, to prevent, or detect and correct ....misstates tints on a timely basis. A material weakness is .a deficiency; or a combination of defo"i.encies,.;in; internal control, such that there is a reasonable possibility thata material misstatement of the City's``firiancial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies numbered 201.6-001. and 2016-0�2 described in the accompanying Schedule of Findings and Responses to: be a material weaknesses. ■ I Tn1r7e'+mI t.R[irwcoNu4aI�Ler1 =1 {32} f,y TLF k,aT:o1-�L Honorable: Mayor and Members of the City Council City of Gem Lake Compliance and: Other Matters As park 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. City of Gem Lake's Response to the Finding The City's response to the finding identified in our.audit is i.ri".1he accompanying schedule of findings and responses. The City's response was not subjected, to the auditing procedures applied in the audit of the financial statements and., accordingly, we. express `no opiniori.on;it. Purpose of this Report The purpose of this report is solely to describe the:.. scope of our testing of internal control and compliance and the result of that testing, and not ta'provide an opinion on the effectiveness of the City's internal control or on compliance. This report is.:an ,i.negral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, .this communication s;notsuitable for any other purpose. ClifEonLarsonAflen LLP Minneapolis, Minnesota (33) v CliftonLarsonAllen OfflonL amonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON.MINNESOTA LEGAL COMPLIANCE Honorable Mayor, Members of the City Council, and Citizens City of Gem Lake, Minnesota We have audited, in accordance with the auditing standards generally ;accepted in the United States of America and the standards applicable to financial audits contained iri%`;Government Auditing Standards issued by the Comptroller General fi of the United States, the nancial statements of the governmental activities, the businessAype activities, each major fund., and the aggregate remaining fund information of the City of Gem Lake, as of and for the: year ended December 31, 2016, and ;the related notes to the financial statements, which collectively comprise the City. 's. baste fnancial statements, and have issued our report thereon dated The Minnesota Legal Compliance Audit Guide for Cities promulgated by the State Auditor pursuant "to Minn. Stat. §6.65, contains seven categories of compliance:.ta::be tested: contracting and bidding, .deposits and investments, conflicts of interest, public indebtedness, claims .and. disbursements, miscellaneous provisions, and. tax increment'financing, Dur. audif considered all of the fisted categories, except that we did not test for compliance with`tax. increment financing because the City diid not have.. any tax increment financing: In connection with our audit, nothing.came to bur attention that caused us to believe. that the City of Gem Lake, failed to. comply with' tlj`e; provisions ofi`tie Minnesota Legal Compliance Audit Graide for Cities, except as. described in the Schedule of R diings and: Recommendations as items 201.6-003, 2016-04, and 2016-05. Hoirvever, our audit was not:;directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we,peoprmed; additional procedures, other matters may have come to our attention regarding .the Cityof 'Geri7'`Lake's noncompliance with the above -referenced provisions. The City's response to tfe fading identified in our audit is described in the accompanying schedule of findings and 'responses. The.. City's response was not. subjected to the auditing procedures applied in the audit of the. financial statements and accordingly, we express no opinion on it, The purpose of this report is solely to describe the scope of our testing. of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other'purpose. CliftonLarsonAllen LLP .Minneapolis, Minnesota. • MN�r0. rffrwiol tow@ I r wnl foal [ ki E RN.tTi(JN 4 L (34) CITY OF GEM LAKE SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED DECEMBER 31, 2016 MATERIAL WEAKNESS. 2016_001: 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. thata 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 physica[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 periodica[iy'ar d 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. Management Response: Management. has decided, due' to 'the small size' of the City's staff, that the additional costs of implementing the necessary coritro[s`oiatweigh the'benefits that would be deriver, (35) CITY OF GEM LAKE SCHEDULE OF.FINDINGS.AN© RESPONSES (CONTINUED) YEAR ENE© ©ECEMBER 31, 201E l MATERIAL WEAKNESS(CONTINUED) 201E=002: No Utility Billing_ Reconciliation Performed Condition: As the City transitions more responsibility to others, it was noted a formal reconciliation of utility billings and collections are not being performed to.account for total billings. and receipts into. the City's general ledger system. Criteria: Management is responsible for having adequate controls and processes in place`to ensure all activity that is not created and/or generated by the general ledger system ;is sufficiently reconciled to subsidiary systems. These could be accomplished through periodic review. of billing registers, receipts, and system activity. This process. should also include a reconciliation process in which all of the activity in the subsidiary system is entered. into the general ledger and key account balances and. totals are traced to the supporting reports/schedules of the subsidiary system. Effect. The. City may find unexplained variances in uti€4 revenue and receivables_'..'_ . Cause: The City is working through identifying and. establishing controls anti processes as some duties are separated out among different individuals. Recommendation: We recommend City management establish a process to reconcile the utility system. to the general ledger at least quarterly.#o; coin.cide with the utility.billino process which occurs on a quarterly basis. Management Response: Management i5 exploring ways :W provide a recoi]CNation between systems. (36) CITY OF GEM LAKE SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED) YEAR ENDED ❑ECEM13ER 31,. 2016 OTHER.ITEM FOR CONSIDERATION = MINNESOTA LEGAL COMPLIANCE 2016-003: Prompt Payment of Local Government gills Criteria: Minnesota Statute §471.425, 5ubd. 2, requires Cities to pay each vendor obligation:according to terms of the contract or, if no contract terms .apply, within the standard payment period unless the .municipality in good faith disputes. the obligation. For municipalities who have govern ing boards which have regularly scheduled meetings at least once a month, the standard payment period is defined as within 35 days. of the date of receipt. Condition: The City paid one invoice outside of the .35 days as defined` by the Minnesota Statue. The invoice was paid. approximately 3 months after it was dated, Effect: The City is not in compliance with the Minnesota. Statute requiring `prompt payment of local government bills. Cause: The City payed invoice outside of the,35 days as'defined bythe. Minnesota Statue. Recommendation: We recommend City .management closely, monitor payment of invoice to ensure that they are.paid in a timely manner. Management Response: City management is :aware of this requirement and will continue to monitor the requirement to ensure that payment cont€Rue to be made as required. 2016-004: Annual Report of Outstanding �htigati6ns Criteria: Minnesota. Statute,.§471:70, on: or beford;February 1st each year, it shall be the duty of the principal accounting officer'.of each municipality to report to the auditor of each county in which such municipality is situate, the total. amount of `outstanding obligations, and the purpose for which issued as Of. December 31 of the preceding year, Condition: The:.`City did'not.submit. to.:: Ramsey County the. Outstanding Obligations. as of February 1SF 2017. It was<submitted on February 9.;: 2a17. Effect: The ;'City is not in compliance. With the Minnesota Statute requiring the submittal of the Outstanding Obiigations.as of February 1st of each year. Cause: The City f4k provided the Outstanding Obligations report in the past but did not submit report by the deadline for 2016 ; Recommendation: We recommend. City management implement a process to trigger the submission of the Outstanding Obligations report prior to the February '1st deadline -each year. Management Response: City management is aware of this requirement and will continue to monitor the requirement to ensure the Outstanding Obligations report is submitted prior to the deadline: (37) CITY OF GEM LAKE SCHEDULE.OF FINDINGS AND RESPONSES (CONTINUED) YEAR ENDED ❑ECEMBER 3.1, 2016 2018-005. Out of State Travel.Policy Criteria: Minnesota Statute §471.661, requires the governing body of each statutory or home rule charter city, county., school district,.. regional agency, or other political subdivision,. except a town, must have on record. a policy that controls travel outside the state: of Minnesota for the a.ppiicable elected officials of the relevant unit of government. (38) c .❑ 4-J .m L C El dl] u?IIVU05leIu9ljR TOZ(D c 0 4-J 0 L- 4-j E 0 m u' E E 0 U 0 2 m m E E I .�/ ( ✓J cn v LO LO u d'37.�a11'daQsae-luaz{EI� 9X4tO i � �7A ❑ =' ru u • — _0 s— _ CY) �. ' s t1D N N Ca 4- J X �_ m cn 4—J .� ['C3 ' U t6 [!] � 4-11 ° ❑ —0 Q o U 'aLn . ❑ ; d [6 _ E s 1 I 4-j . C Ul) c� 0 > u V C. txo. Q � ¢� i LLIo F� ;z t v d1l Uallu 0 RA el Li GIA VAT 0Z 0 ML V) 4-1 0 4-j 4-J 0 U-j ma 4-J -W cn Ln Q) _0 a +., CL 0 V) .0 ul 4--J 0 0. 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Qj $-+. ci3 4-j U LIF) ) •� m u d s. a `� Q� C Cu} U 0 a N 0 o s.. a ,--i LCL aJ U u �. m --• ¢. _.A . .j T N L J u [�_} C9 0 .�...�. . �..a 0 � o ❑z J [n I LU O C] I 6116117 at. 10:55:35.75 City of Gem Lake Check Register For the Period From Jun 16, 2017 to Jun 20, 2017 Filter Criterfa. includes: Report order is by Check Ndmber; .. neck # pate Payee Amount 10160 6116/17 Gloria A. Tessier 683.93 10160V 6116/17 Gloria A. Tessier -68193 10161 6116117 Glorla A. Tessler 732.53 1.0.162 6/20117 Gretchen Artig-Swomley 277.05 10163 .6120117 Faitll. A. K.uny 277.05 101:64 6120117 :Robert L. Uzpen Jr 454.10 10165 6/20117 James A. Lindner 277.05 10166 6/217117 Richard W. 13osak 277,05 10167 6/20/1.7 Bond Trust Services Gorpoiratlon 8,065.00 10168 6/20/17 City of Roseville 1.51.85 10169 6120/17 City of..White Bear Lake 1,374.75 10170 6/20/17 Corporate Mechanical 154.00 10171 .6120117 FedEx•Office 288.60 10172 6120117 GLO.RIA TESSIER 10.60 10173 6120/17 G & K SERVICES 6.24 J174 6/20117 Innovative- Office Solutions, LLC 128.97 10175. 6/20/17 JAB! -PRO CLEANING SYSTEMS 225.00 10176. 6120/17 Kelly & Lemmons,:PA 3,599.63 101.77 6120117 Kristin Smith .50.00 10178 6120117 League -of Minnesota Cities .272.00 10179. 0.20117 CliftonLarsonAllen LLP 1350A0 10180 .6/20/17 Metropolitan Council 2,316.99 10181 6120/17 Press Publications MOP 10182 6/20/17 CenturyLink 103.6.4 10183 6/20/17 Ramsey. County 1I};462,00 10184. 6/2011.7 SEH 6,196.60 101.85 6/20/17 St. Paul Stamp Works, Inc 81.50 10186 6120/17 Waste Management of WI=MN 661;29 10187 6/20/17 White. Beer Township. 4,557,49 10188 6120117 VOID 10189 6/201.1.7 VOID �190 6120117 WHITE BEAR TOWNSHIP UTILITY BILLIN 100.30 10191. 6/20/17 xcel. Energy 475:78 Pa.ge:.1 6tl6M7 at 10:56:35.78 Page: 2 City of Gem Lake Check Register For the Period From Jun 16, 2017 to Jun 20, 2017 Filler Criteria includes: Report order is by Check Number, Check:# Date Payee' Amount Total 430 54.40 r 44) ti r C14 o .M .y . .I g N ,, CO Q1at'❑ 4- � m o U LL. C] o N � CL �. Q1 I]G rt�.l G1 00 U. n N p v Q m ta N E L' O- Q Lh . N T] U � I 3 l] e U v lL C 3 4 Q d 0 J g U m W W G a 4 U W M N 0 Of v M N OLO fp to LI7.iCyM LC]rto P'3 M M V[Va03: NNcoNco.COCCS N MrLnNQ c;OGui66.GJvi CV rCV030R O CO cV 00 M. �r MM�MC3 CO V .e- Uj H s� < rrN, ❑ U f 0 S co 0 4 W -.ttl �CI}� JwU]�.Lu<UJLU m nz"W�UL)Q 0 io..Ll.o�zt]m Lu ❑ U. O. : ! W-j O Jai:<Q-c F-wo-<MWMMM3: z L LI O OLU a �Q ¢ C 0 D ° �L' Q LU - LULu il 7 y� in co u} o �+ u!W.WZ)0� v7 O .a L)�. a IL [r7 r N CO. N Cfl `r a Y CO. Lo 0.0 Lo. 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C7 r .C7 .r. r Q N N CY N r .- O a4 10 � 99 O9d 99999. a GQ 00 O' O O C7 C7 C7 C7 4 r rrr 0. ram- r-r .Fr r r— --r � i• � i- ti r- [A (gyp fl (D LA r r r r r r CITY OF GEM LAKE :CASH .AND INVESTMENT BALANCE STATEMENT As of.95131120I7 Fiscal Year; 2017 Cash :and Investments Balance Balance Name of Fund 5/1/2017 Receipts Disbursements 5/31112017 General Fund SI OM5.77 $5,1 19.4S $4,669.90 $.104,235:32 Parks and Playgrounds $39,754.84 $0,04 $0.00 $39,754.84 2004 Debt Service Fund $6591.67 $0.00 $DAD $6,591.67 2006 Debt Service Fund S42,49.7.55. $0.00 $0.00 $42,497,55 .2007 Capital Improvement Bonds $120,772.49 $0.06 $0.00 $.326,772,4.9 Improvement Fund $I32;933,83 $0.66 $0.00 $132,933,83 City Hall Construction S0.00 $0.00 $0:D0 $0.00 Scheunemah Road Improvernetns $3,.185.96 $0,00 $0.00 $3;185:96 Hoffman .Road Improvements ($3:90,746.19) $0.00 $9.00 ($390,746,19) Sewer Enterprise.T'und $4l 1,989.38 S3,05.06. $22,7I.4.5.8 $392;95.9.86. Ifivestment Trust Fund M.;353.39 $1,2.76.03 $0.00 $2,629.42. $472,118.60. $101080.5.4 $27,384.48 $4.54,81.4.75 Premier.Checking $95,099.12 Premier CD's $.0.00 Wel[s Fargn.Investments $354060..00 Wells Fargo Money. Market $5:713.63 5454,814.75 BALANCE STATEMENT QF GAMBLING FUNDS Balance Balance 51I12017 Receipts. Disbursements 513.1l201.7 Gambling Fund Balance $7,477.87 $920.89 $3,200,00 $5;198.76 lNT. # �^ ACCF2llF61tliERE5.T' —DATE ELATE .: BANKIBRQKER TYPE NAME Cu5lp# YlELO RA7E --ASflF.�. DAYSr 5131120I2 `lAfTERESt DATE PREIuSIER BAiVIf CH}L GENERA4 FUNE7 fipO55S0 0.0593 U.OS% 10. 3113,904.11 $4,75 Monthly WEL! 5 FARGQ AM1M Cf PRIAh kN)]EVN1_NT F Nb - _- . _ ...- 12970216. D Oi% U.Oi96.. 3q: S57i5y63 } 50.04 ' }AoniNY., 1p117117" 1p117112!WELLS.FARGa 'ZU GOLONIAFI SACHS � 38143AN27 �-fop#2pA472 1.65'% 1_55%' � 1826 31pggpq.p0, �5214400 57.75.OQ_: 41iT& 50137' � ._4..l..41.2.2. I112116kELFAR . WS NE11018 CALHPJdK 12p4% 7.2pti� p0 54�124a6»1�1n4i_d14112WELLSPGa.CO_ A1VZ4.2.9M Z90% rv�728 3653S46ap0,0p .51�48d•p0 $58�p 1.14%; 1.14W 1, 262' S473 519,74 : 52 843.79 City of Gem Lake GENFRAL FUND Budgeted .StatemcnlorRevert uas and Expenditures For ill e.Five Mon llis Ending May 3.112017 Curr Mnth Cwr Mnth Curr Mnth .2017 �L_ YTr) e Agm Variance °/ Qamplde Budge t mw V yi3ke 4� Com En eie ]tisl'ENUES Property Taxes Current Property faxes 3 29,723;67 S 6.00 29,721,67 0.00 $ 356,694.06 S 5.815.25 350.868:75 1.63 Fiscal Disparity Taxes 550:83 0,00 550,83 0,00. 6.6I.D.00 0,00 6,610.00 .0.0 Penalties & Interest 0.00 0,00 0.00 0,00 0,60 378.15 (378-I5) U0 licenses and Permits General Business Licenses. 183,33 0:00 183,33. 0-06 2.200.60 3.00o:00 (806.00) 136.36 On-Sale1.iquor License 441,67 0.00 441A7 0,00 51300;06 7660.00 (2.300,00) 143.41] (711=Sale Liquor Licenses 16,67 000 16.67 0.00 200.00 206.00. 100,60 Other Permits. 83.3.3 0,00 83.33 0.00 1,000.00 100.06 860,00 20:00 Tobacco License 16,67 O,oO 16,67 D.00 200,00 0,00 200,00 0.00 ChariTable. 6ambIing license 41.67. 0160 41.67 0.00 500,00 500,00 0.60 100.00 contwor License 83.33 100,00 (16,67), 120.00 i3OQ0,00 1,005.00 (5.00) 100.50 BuildingNrmits 791,67 298.65 493.62 37:72 9,50o,00 3,480,95 5,519.05 41,90 PEumbing.Perna s 83.33 0.00 83M 0,00 1.,000:00 655.00 345,00' 65,50 Mechaniol Permits 1.66-67 100.DA 66,67 60.00 2 ()00.0a 1.400,00 600.00. 70.00 Elcctricall'ervoks 83.33 135;00 (51-67) 162,00 i,000.60 170,00 .830:00 IT00 WDES Permit 8,33 0.00 8.33 0,00 100400 100:00 0.00 100M Building Plan Review Ua 215-90 (215.90) 6.00 0,00 302,45 (302.4$) 0,00 Fire Marshall Inspection. 209,33 2.771.70 (2,563,37.) 1,330.42 2,500,00 7,646.10 (5,146.10) 305,84 Septic Inspection Fee 250.00 0-00 25010 .0100 3,000.00 420,00 2,580.00 14.00 State Pennit Charge 6125 14-50 (8.25) 332.00 75.W 46,00 29-00. 61.33 Administration Fee 41.67 0.00 41.67 0.00 5W.(19 0,0.0 500.00 0..00 SewerCantraeturLicense 33.33 10,Oo 2333 30,00 400,00 3t0.60 40.00 77,50 Dag Licenses 8:33 130.00 (121.67) 1.560-00 Iii0;00 23P go (Ik_00) 230W lnter99yernmentat Revenues County.Grants & Aids 0,00. 0,00 aka o.,00 0:00. 12,80 (12.80) 0,00 SCORE Rec}cling Grant 0.00 o;0p OM0:06 0.0a. 1,005.00 (1,005,00) 0.fro Cable TVFranchiscr-ees 4wO U0 41.6,67 0,66 5,000,00 6,48b'?6 (1,496.26) 12917S Pollee Stale Aid 624:08 O:OD 624,08 0.00 7,489.00 31294.00 4.203,00 43485 Chargex ear servieeyl Manning Fees. 41.67 0,06 41,67 0.00 500.00 75,01): 425.00 15;p4 Plan Revic%v 166,67 0,00 166467 0.00 2,000.00 2.30.6M. (306,65) 115,35 Engineering Charges 125;00 0.ob 125:60 0.00 1.500.00 0,00 1.50D.00 .0..00 2aning.Charges 0.00 0-00 0.00 0,00 0:00. 75,00 (75.00) 0.t10 Invesiment Admin Charge 19,00 6,00 19..00 0:66 2.38.00. 0 21 M-7.9 0109 Fines and F'orfelts Fines sS0:00 116,00 134.00 46.40 3.000.00 2,665,50 334.50 88.85 httsrcllainenus inwresti:arnini, 157,50 0,00 157,50. 0.00 1.1890M 1,37 1.888,63. 0,07 .MisL'CllftnecU5 83.33. o.66 83.33 0.00. 1,000.00% 569_60 431.00 .56.90 Insurance Policy Dividends 41,67 0.00 41;67 0.00 500.06 0.00 560A0 0.00 Facility Rental 250.00. 466-30. (216.36) 186.54 31000.00 566.36 21433-64. 18-88 Total Ri vcnucs 34.999,00 4:358.11 30.639.99 12,45 419,976,00 .51,06,55 368:'X5.65 12.15 F.XPF:NI)ITuRE8 City Council Wages and Salaries 625...00 0,00 625,00 0.00 75.00:00. 1,800.00 5,700,00 24,00 Employer Pain Insurance 47,83 0.00 47,89 0.06 $X00 173,7.0. Q00,30. $6, 6 A'dmiiistration 83.33 0,00 83:33 0.00 i,000.00 3.1.8.75 681.25 31 A Council CaMingency 0.00 123,00 (125,00j o.00 0.00 1Is.00 (125,00) 0.00 Elections Coinraeted Services 0.00 11491,05 (1.491.05) 0.0[} 0,00 2 1-88;05 (21288,05) 0.00 Administration 531.33 0.00 531.33 0,00 .6,376,00 0.00 6,376,00. 0.00 Legal Notices 9.33 0.00. 8.33 0,00 100.00 31.36 68.64 31.36 6lt212n17.at I-52 PM City of Gem Lake GENERAL FUND Eludgeted Sin lemen1 orRemims and Expenditures For the :FiYe Months Ending May 31. 2017 CUrr MTIth CIMF nlh Cur MITt 2017 YM 'gyp iWO Actual Varinnre 0" ComVietr Budget Rental Varian "/o Cnnenleic. Repairs & Mairit - Cent ractual 45.93 0.00. 45:83 0.00 550.00 0,00 MOM Q,OtI Flatinchd Administration Audill ng Services 791,67 1;(i00.06 (208.33) 126.32 9.500.66 8?06,00 1,300.00 96.32 Administration 0,00 0.00 Q.00. 0.00 0.0.0 76,88 (76.89) ao Financial Services .2,166,67 .31533.64 (1,366,97) 163.09 261000,00 8,263.91 17,736,00 31.78 compulcr Servim 83.33 0.00. 83.33 0.0.0 1.000.00 0.00 1,000,00. 0,00. Legal Services Prosecution 166,67 1,17140 (1,10433) 762,60 2;000,00 1,456,00 $44,00 720 Legal 1?50.00 1,376,63. (126,63) 110,13 15,000100 4.37826 10,611.74 29:19. I:egnl -Lund. Issues 416.67 2 635.0.0. (21209,33) 636,00 5,000.00 1,635:00.. 1375.00 52,50 Clerk7General Gov¢rnment Wages -and Salaries 2,666.67 1,937.50. 820.17 68.91 32,000,00 085,00 33,315,00 2714 Workers Compensation 14.58 HO 14.59 0.00 175.00 77:50 .97,io 44:29 Employer Paid Insurance 204,00 (442:63) 646:63 (216.98) 2,448.00 (488.63) 2,936.63 (19,96) i]Iiii:e Supplies 10000 25.52 74.49 25.52 1200.00. 573,47 626.53 47:79 P.:ostasc 100.00 266.48 (166;48) 266.48 1.200.00 45038 749?7 37,57 Professional Services 0.00 am 0.00 0.00 0.00 4;500.00 (4;500.00} 0.00. Administration 4 45.19 (3,52) .1 R8.46 500.00 90.381.67 . 409.62. 18:b8 misccllanedus 4.17 0 03 4.14 0..72 50M 0,03 49,97 0.O4 Web Site: 79] 7 io 00 29.17 63.16 950.00 345.8& 60C12 36AI Mileage 26:83 20.1E 0.72 96.53. 250,00 51.35 198.65 20,54 Compater Services - 2500Q 350.00 (1.00.00}. .140.00 3,000.00 2;1i9.94 880,06. 70.66 I-c3al Notice Publleation 7.9,17 O.On: 79.17 0.60 050.00 31.36 91 8.64, 3130 Newslener/Public Relations 208.33 0.R0 208:33 0,00 2,500m 577.20 1,922.80 23:09 Gelieral Liability lnsurastce 212'50 2,263.0U (2,050.50) 1,064.94 M50,00 2,566.75 { 16.75j 100.66 Veil icleinsurancc 2M O:OO 2.08. 6,00 25,00: 18,75 6:25 15,00 Pub Iic 0&tcials LiahlitIiy 12.50 6.Oo 12:so 0,00 150.60 NIS 120:75 9.5 10 Racyclin11 Collection 833.33 661.29 17104 79.35 10.000,00 3,306,45 G,693,55 33.06. League of MN Cities 59.33 0.00 58;33. 0.00 .700,00 0:00 700:0ti 0.00 RCLE.G 16.67 AGO.. 16,67. 0.00 100;00 0100 200,00 0,00 Subscriptions 4.17 (mo 4.17. Om.. 50.00 0,00 56.00 OIO0 Gambling Distributions o.00 3 200,00 (3,200.00) 0.00 0,00 3.200:00 (3,20000) 0,00 Planning and 7.ouing Prol,essional'services. 4.17 0.00 4,17 0.00 50,00 0.00 50,00 0100 Engineering 833:33 OMa33.33 06 10,000m 6,391,03 3,4a8.97 p.91 Administralien 375,00 71188 (336.98) 189;93 4,500;00 963,15 3;536,87 21.40 2aning Adrtinistratian 41;67 0.0[7 41,67 a,00 500,00 OM 500.00 0.00 NPDESAdministridon 1,125,00 402:92. 722.08 35,82 13,500,00 1,327,80. 12,1.77?0 9.80 Comp Plan update 5,250,00 0.00 5.2m.00 0.00. 63,000.00. 1,553,52 61,446.48 2.47 Ilrri=age: I Nit Operating supplies 75.00 .0.00. 75.00 0.90 900.00 0.00 990.00 0.00 Prolessional Services 333,33 8S.00 248.33 25.50. 4,006100 153,50. 31846,50 .3.84 Contract Services 250.00 .231:24 106 92,50 3,000;o0 1;=54,72 1.745.28 41.82 ielephotie. I35.00. 104.62. 20.38 83.70 1,500.00 521-80 978.20 34,79 Property insurance 83.33 0.60 93.33 0.00 1,006.0b 161,00 839.M. 16j..o Eliktric Service. 416.67 .344,22 72:45 82,61 5,000,00 1,233,61 3J66.39 ?4,67 Gas Service 156,00 65.18 84,92 43A5 1,800.00 47%94 1,330.06 26.66 WalerlSelk"wrUtiIities 45,83 00,56. (14,73) 132.13 550,GG 177.11 372.89 32'20 kepairsMaiirt-to61ractua1. 125,00. 0.00 125.00 0:00 1,5O0,00 IXO.50. (380.50) 125.37 Reparis & Main[ - Building 416:67 397,75 13.92 95A6 5,000,00 737,15 .4,262.75 1.4.75 Police. Regular Law Enroreemenl 81615,69 0:O.i1 9.615.08 0.00 103,38.1.:00 4917,21 62,563.79 39.48 Special Lavv En.1'arcement 500.00 0.00 500.00 0.00 6.000.00 1.166.10 4.933.90 19.44 DispamhCpsrs 266:67 26i,45 .5.32 9R.fi4 3�200,00 1,045.80 2,15420 32,68 Fire Fire Services 1,622,67 1.022.67 {G.Ou) IRt7.o0 12,273.OQ 5,113,32 7;I58,68 41,07 Fire Marshall Service 352.08 352.08. 0,00 Iaa.aa. 4122.5;00 1,760:42 2,464,58 41.67 Animal Control AnimalRerawal 37.50 0.00 3T30 0.00 450100 0.00 450,00 000 W12=47 at 1;52 PM City of Gcm Lake GENERA I- FUN 1) Bucipted StatemuM ofRevenues and E%penditures for.thefive Mundts Ending May 31, 2017 Cur Cur -Moth -Moth Cwr-M-at �? rDrd -M Budget et ia] Variancc 4U Complete i3". Agval Variance °la Co MR Animal EnIb tei of 1 &67 0,00 I&V U.00 . 200.00 0.00 200,00 0,00 Building lnpsectiun Building inspections 833.33 873.94 (39:61 } 104.75 10,000.00 3;427.70 7,572.30 .24, 8. Buildin: gS.ccretpry 83:33 R00 83,33 0.00 1,000.00 .0.00 1,000,00 0..00 Compuler Services 70..83 .0100 70,83 0.00 850.00 0.00 350,00 DA Rai:d MoIntenance Signs,SignAepa}rMaterials 250 1.03.07 (78.07) 412724 .300.00 103.07 i96.93 34:36 Engineering 41.6067 6.D11 4 i6.67 6;oo 5,000.00 0,00 51000.00 0.00 5treat.Ughts 104.17 94,20 19,97 90,83 1.350.00 338.45 91I.155 27XK ROW Maintenance 83.33 0,00 83.33 0.00 1,600,00 0.00 1,000.0a 0.00 Street Repairs. 208.33 o.00 208,33 0.00 3;s00,90 0.00 1500.00 0,00. []uc9 & Subscriptons 4,17 0,00 4,17 0.,0b 50.00 39.58 10.,42 79,16 Ice And Snow R moval Salt and.Sand 583,33 0.00 583.33 0,00 7.000,00 3,59.3,79 3,406.21 51,34 RL -Pairs & Maint - Cop traetua] 166.67 0.00 16K67 0.00 2,00000 0.00 2,000:w 0.00: Snowplowing 833.33 0;00 833:33 .0.00. 10.000.00 3,675,50 6,3*m.50 36,75 Other Financing Uses 'Pool Expeoditures 34,998,00 24,798.59 10.199,41 . 70.86: 411;976,00 132A3-22 286,993.78 31,66. Feeess.Rev Over (Under) Eli s . o.00 2u.440.48] 20,440,48 .0,00 s - 0.00. (S aI,976.87.) 81,976.87 090 V1212017. at 1;52:PA1 REVENUES Interest Eamings Total Revenues EXPENDITURES Chy or Gem Lake PARKS AND PLAYGROUNDS FUND budgeted 5tatemsnt ui'.Ravenues and. > xpenditures For the Five NIcnths End ing.May. 31, 2017 Cur; Mnth Curr Mnth Curr Mnih a6L7 Budge ct unl Variance % calm Diet e HOFe[ ?8..75 S 00 (29.75) 0.00 S 345.00 5 m YTn: ctu3 . Varinnee °J CaiopIq 0.44 344,5E 0,13 28.75 0,00. (28,75). 0.00 345,00 0.44 344,56 0.13 Total Expenditures 0.00 6,00. Ow 0.00 0.00 0.00 0,00 Excess Rev 0ver(Under),Cap $ 28.7.5 S 0-00 (28.75) 0,00 5 3.45_O& S OA4 344,56 0.13 6112/2017 at 1:54 PM City of Gam L#-d 2004 ❑EBT SERVICE FUND Budgmed.Statement orRevczues and Expenditures For. the FiveMontltg Cnding May 51,2017 CurrMptij Curr Mnth urr nsh. 217 YTDYTD Budcet Acnial Vur ue�o g °hCompki aul hw Actual Variance %Cnrnplet4 REVENUE Interest Earnings s Uo s 0.00 0.00 .0.00 s. 0,00 s 0,67 (6107) 0,00 Total Rcecnucs 0.06 0,00 0.00 0.00 0.00 0.07 (0,07) 0.00 EXP&NDITURES. Total Expendituro 0.00 0,00 Ho 0:00 0,00.. 0.00 0.00 0100 Excess Rev 04u (Under) Exp s 0,00 S R.00 0.00 0.00 S 0.00:s 0.07 (0,07) 0:00 6112001.7 dt Ii56 PM CityufGem Lake 2006 017BT SERVICE FUND 8udgetcd SMlemew nl'Revenues and Ezpeaditures Far the Five Manors Ending May 31, 21011 Curr Mnl Curr Mril Cu rr lNnlh 3017 r R Bltjgcl AgWal Vnr;artcc nCntnnictc 13, A=9 Variance %Gnmplele RSVtiFYLiE5 Current Special Assesstneafs S 0,00 .S 0.00 0.00 0.00 S 0.00 $: 459.92 (459.82) 0.00 Penaliles& Interest Ho 0.00 am 0.00 0A0 29.35 (2935) 0.00 iltterest almirigs A00 0,00 0,00 0,00 0.00. 0.47 (0,.47) AN Total Revenues 0.00 0:00 0.0Q 0,00 0.00 480,64 [484.64} 9.ob EXEFLNTjlRF� Total Expendiwres OAO 0,00 .0,00 0.00 .0.00 0.00 0.00 DM C.Kceas Rev O wr (Under) Exp S 0.00 $ 0,00 0.00 0.00 $ 0_00_$._ 48�1.C4_ _-- N89.64) OM VI21.2017 zi Iz58 PM City omrm #.uite. 2007 Dr-B ' SERVICE FUND Dudgeled Statement of Revenues and Expenditures 1=ar tiie i;ive Months Ending May 3 1;.2017 urrMn h Curr.Mntli Curr With 7�: YTL _yTp 3.0gol Actua} Yariam %Complete. BFt Actual Va i, ncc % f olnbleic REY1;NUCS Current Property Taxes S 6;332J5 S 4,00 (6,332,25j 0.00 S 75.987.0D S I.,S08;98 .74,179-02 3,39 Fiscal ❑isparities 0.00 0,00 Q,QO 0,00 HO 117.63 01763) 6.06 interest Earnings 42,23 U.00 (42,25) 0.04 507,00 1.32 505,68 0126 Total Revenues 6,374.50. 0.00 6,374.5Q 0.00 76,494,00 I i927.93 74,566.07 2.52 EYPE,NDITUitES Principal 5,000.00 0.00 (5,000.00) 0.00 60,000.00 60,000.a0 0,00 1000 Interest 1.375.41 0,00 I1.375.421 0.t70 16,505.00 8;440.00 8,065.0.0 51.14 Fiscal Agent fees 45.33 0,00 (45,83) AOD 5$0.00 550.00 0,00 106.60 TOW Expenditures 6,421.25 6.06 (6,431.15} (WO 77;055,00 68,990.00 8L065.�0 89.53 Excess Rev. Qver(Under)Exp S 46.75) $ 0.00 46.75 0:00 [S _ 561,00]_{S_67,062.47} 66:501.07 11,9.51.02: 6112r2o1T aV1.59 PM Cily Or{3am Lame IMPROvrmrN'[ FUND 13utlgeied Stawment.ofReVenucs and F.xpanditus-es For the F.ive.Mon On Ending May 31., 2017 rr Mnth CurrMnih Curr:Mnih2017 MD. fidget MW 'I e % QUI ] ete BsodFet. s Varihne . "/o Camp3etn lzr•,�E�11Fs Interest Carvings. $ 96.17 5 0,60 (96r17) 0.06 $. 1,154M 5 1.46 11152.54 0,13 Totai Revenues 96:17 0.00 196� 17) 0.00 1,154:00: 1.46 1,152,54 0.13 EWE�,IDLT_ FS TWI Expenditures 0400 0.00 0.00 0.00 0.00 0.00 6.00 0.00 Excess Rev Over.(Underj Exp 5 96.17: $ U.06 (96.17) 0.005 1,154.00 S 1.46. 1.15154 .0.13 6M212017 at 2A0 PHI REVF.YUFS Intem;t 5mings. Total Revenues ExPFIV rrm 5 C1ty.of Otm lake SCI €EUNEMAN ROAD 1MPROVEMEN'rs Budgeted Stateinen€ 61'ReVenues and Expenditures rOr 1119 five MOnti15 Ending Ma}• 31, 2b 17 Curr Mnth Curr Mwh Curr Wth 2017 .13udeei. .AMI Vadmic %coilbplete Auoml s 2.33 5 R.00. (2 33) O.OU. $ 29.00 S m VTD Actual rill oe Iu Coltlt�lete 0.o4 27196 2.33 0.00 (2.33) 0.00 29.0Q: 0.04 27.96 0.14 TOW Ex ondisnres 0,00 0.00 0,00 Aca 0.00 0.00 0,00 0.00 Excess €tev.pner (Undrr) Exp S 2,33 S. 0.00 (2.33) 0.00 S. 1-8.6U s UA4 27,96 0.14 Gil 220t7 st 2;02 PM City orGual.1 e .0 I.OMMAN ROAD IMPROVEMENTS Budgelod 5larament OrRevenucs and C.Npendilures. For Ilse rive Months. Ending. May.31, 201.7 CurT Mhl Curr M6111 Curr Mnth 2017 YTS. YTD h1mgm 6ua Variance %Cam l� Bud eet e in V3rionce °/ nm le e REVENUES Current Special.Ass,ssments S 5;300,83 s {1,00 (5;300,83) O.Ob S 63,610.00 3 SJ67.27 58,442,73 8,12 Penaltics & Ilumsi.. 0,00 0.00: 0.00 0.00 .0.00 1,343.15 (1,74115) 9.00 interest Famings (101.83] o.OU 10I,83 0.00 (1;323.00). (4.31) (I,217,6.9) 0135. Total Revenues 5,i99A 0.00 (5;IKOfi) Q00 62.388.00 6.506;1.1 55,881.89. 16.43 E,\PENDITURES fetal Expenditures 0,00 0.09 U0 0.00 0.00 4.00 0.00. 0.00 Exct9s R.cv Over[.Under] Exp S 5.199M 5 _ G.00:__ [5.199.00Y' 0.00 S 62,388,00..S 6,506.I 1 _55.881.84 IO_g3 ell=6i7 at 0!33 Am City. of Clem Lake SOWER ENTERPRISE FUND. Ruds*d. SwItinent a[Revcnues and:Expendiiums. For the Five Months Ending:May3l., 2017 urr mrith Curr Ninth ntl 27 YTD YTD Budeel A t i. Varinno °�-Qwwste �,j Actual Variance % Comp]e[c REVENUPS Local. SAC. S 0.00 $ 0,00 0.00 0,00 5 0.00.$ 1,g00,00 (1,ODQ.00j 0.00 Metro SAC 0100 0,00 0;00 0,00 0.06 2,485.00 (3,485,00) 0..00 R6 deniial8ewwRevenues I?91:67. 0:66 (];?91,67) ODD Z5,500.00 3,51:0.i0 11,989.90 22.65 CommcrclaISmerRevenues. 3,958.33 0.00 (2,958.33) 0.00 351500.OD 9,401.21 26,098,79 26.49 Sekr Charge5. Delinquent 0.00 0:00 0,00 ON 0.00 .245,50 (245,30) 0.00 Settu Late Charges 208,33 0,00 (208.33; O.OD 21500,00. 9.82 2,49UA 0.39 Interest Famings 299.75 0.00 (299.75) 0.00 3.5.97,00 4,83 3,592,17 0.13 Total Res^cnues 4,758108 0,00 (k758:08) 0,00 57,097100: 16,656..46. 40,440.54 19,17 .XPir.lbtTL1RF.5 Ofiiee Stllspbes 41.67. 0:00 (41.67) 0,GO 500.00. 0:00 5.00.00 0.00 Postage .20:83 0.00 (20.83) 0:fi0 "_50.00 0.00 350,00 0,00 Auditing Services 225.00 D.00 (225.00) O.OD 3,700.06 0.00 2,700.00 .0.00 Engineering 41.6,67 0.00 (4)6.67) 0.00 5,000.00 0.00 5,000.00. 0.00 MCES Charges 2,317,09 3.316.99 (0,09) 1OO.DO 27,805,60 .13,901.94 13.903.06 50.00 Locates 50:00 94.45 34,45 168490 600:00 420'90 179:10 WAS FinaRciai:Scrvices 250.00 0:00 (250,00) 4,00 3.000.00 4,00 3.996.00 0:13 Computer smices .41.6.7. 0.00 (41.67) O.00 500.00 209,47 290.53. 41.89 Mdtro SAC Charges. 0.00 O.OD 0.00 O.qO 6:06 2,640.15 (2,640.15) 0,00 RePairs.&Maint=Contractual 333.33 0.00 (333.33): 0.00 4,0 0.00. 0.00 000.90 0.00 flepreciatian 1.041.67 0.00 (1;041.67) 0100 12,300.00 0.00 13.500.00 0.00 SwuTeleviselFlushing. i3OD0.00 0,00 (1,000,00) 0.00 l2;000.00 0,00 12000.00 0.09 Total.C.ependitures 5,73792 2.40I,44 (3,336A8) 41.85 68,855.00 17,176.46 51;678:54 24.95 Excess Rev aver (Vndl r) E.Yp ($ 979.83). ($ 2,401.44) (1,42.1.51) . 345:09. [S 1.1,758.00] S :520,00) (11,238,00) 4.42 5I17J20T7.at 2:05 P14 City of Gcin.Lakc INVESTMENT TRUST FUND Btidpod Statement.of.RevLnues.and Expend itums Far the Five. Months DdinS May 31,.2017 On Mnt Cyrr Mnth Curr nth: 2017 XT—D =D Hgdgel C[LIRI 'V TAm .°%n comillet flL.dUq AcWal V8 ianco CoftF M RF�'F,fVU ES lnlerest Earnings 3 0.00 S 1,276,60 1,27&00 0.00 '$ 0.00 $ 2.;629.41 (7,620,41) 0.06 Total Revenues 0.00 1,276.60 1,276.00 OR) 0,00 2,629.44 (2.629,4I) 0.00 Wf2JZf7 42:01 PM Hoffman Corner Costs To Date As of 5/31/17 Revenues. 2013 2014 2015 2016 2017 Total Grants 0 00 Special Assessments 65938.34 6,510.42 72,448..72 Other Payments 0.00 City Funds 0.00 Bond Proceeds 0.�0 Total. Revenues 0.40 Expendituris Phase II Work Engineering 8,735.27 Legal Finance (WBT) i_egal Notices Fiscal Fees. Construction Other 0.00 0.00: 18,526.0.4 1%975.85 700.00 35.00 65,938.30 6,510.42 72,448.72. 1, 778.94. 49,017.10 I,225.00 1,960.00 0.00 0.00 0.00 0.00 0.0o Total Expenditures 8,735.2.7 19,226,04 20011..85 3,003.94 OAO. 50;977,10. Water Extension Costs Engineering 121,2.66.56 50,69.6:06 171,962,62 Legal 8,330.00 21345.00 1b;675.00 Appraisal 17,350.00 17,.350:00 Finance (WBT} 652.50 652.50 Legal Notices 813.15 813.15 Fiscal Fees 0.00 IMeres.t Expense 5,024.18 4431 5,028.49 Construction 270,947:31 270,947.31 ether 0.00 Total Expenditures 0.00 0.00 14814.12.2.1 529 012,5.5 4131 417,425.07 total -Costs : 8,735.27 19,226.04 168424.06 332,016A9 4.32 528406.1.7 Net Costs (8,735..27) (27,961.31) (196;385.37). (462,463.56) (4.55,957.45) (455,957.45) m O co Ln Ln ' ❑u1 LD 00 ❑ 00 Q y 3 CO ITR3 0 co c cr'I. H 'OR O 00 3 =�m � m o � x M 0 Qa E ti u n p N .m o N O C. .O m. N tD C y� 4 a o r N O [6 r[ n N c vi In N 3 N tD m u- a+ = ro cq C m: ai r4 nMe rle �s ri rrs ti m rs (71 00 0i n L U) (il lzr' n. m' rt W t fM1 L] N O N O 1p o m o m Ln at n ri V7 N r4 t: o . M 0�. zt to IFO X1 O M y us V M . C' CL' u 'a V G' C ca d LL C. LL X -m w V la 32 Q b Z o ' Ll, U Q h CITY OF GEM LAKE GEM LAKE CITY COUNCIL RESOLUTION NO.2017 - 04 A RESO=DN APPROVING PURCHASE OF REAL PROPERTY. WHEREAS, Hansen Investments; LLC is the owner of an 18 acre tract of land located within the boundaries of the City of Gem Lake, and WHEREAS, Hansen Investments, LLC has offered to sell the 18 acre tract to the City; and WHEREAS., the City feels it would bean the best interest of .its citizens. to purchase the: Hansen parcel for the purpose of controlling and guiding the future use of the parcel. NOW, THEREFORE, BE 1T RESOLVED, by the. council of the City Of Gem Lake that the City agrees to purchase the South 10.85 acres of the Hansen parcel identified by its Property Tax Identification No. 27.30.22.33.0005 for the sum of $00,500.06 to be paid as follows: 1. $9,999.00 as earnest money; 2. $290,001.00 cash payment at time of closing; { 3. The balance of the: purchase price; being $359,500.00 to be paid by executing a contract for deed with interest at the rate of 3% per annum. Payable in semi- annual installments of $14,080.00 commencing February 1, 2018 and continuing every six .{6) monihs thereafter until August 1, 2022 at which time the entire unpaid. principal balance, together with accrued interest, shall be paid in full. That the Mayor and City Clerk are hereby authorized to. execute the Purchase Agreement in the form now on file with the City. ADOPTED by the Gem Lake City Council this _ day of Juice; 201.7. Robert uzpen, Mayor ATTESTED; William Short, City Clerk EHLERS LEADERS IN PUBLIC FINANCE June 20, 201.7 Pre -Sale Report for City of Gem Lake., Minnesota $515,000 General Obligation Tax: Abatement Bonds, Series 201 7A. Prepared by: Todd Hager, CIPMA VP/Senior Municipal Advisor Rebecca Kurtz, CIPMA VP/5.enior Municipal Advisor And Chris Mickelson, Financial Specialist Executive summary of Proposed Debt 7-800-552-1171 1 �VVVN.f=}Ilf:!'S-IMC M.. Proposed Issue: .$515,000 General. Obligation Tax Abatement Bonds, Series 2017A Purpose: To finance the acquisition of land. to be used as a public park which will benefit certain property in the City. Debt service will be paid from tax abatement revenues and property. taxes. Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters: • 475. (general bonding authority) • 4.69 (tax.abatement revenue pledge) Tax Abatement Delft limits. the annual .tax abatement for the Bonds to be issued; together with any outstanding annual.abatements, cannot -exceed :10% of the Cityls estimated market value or $200,000,.whichever is greater. The Bonds will be general obligations of the City for which its full faith, .credit and taxing.powers are pledged.. Term/Call Feature: The Bonds are being issued for a 15-year term. Principal on the Bonds will be due on February Y in.the years 2019'through 2033. Interest is payable every six months. beginning. August 1, 20:18, The Bonds. maturing on and affter February 1, 2027 will be subject to prepayment at the discretion of the City on February 1, 2026 or any date thereafter. Batik Qualification; Because the. City is expecting to issue no more. than $10,000,000 in .tax exempt debt. during.the calendar year, the City will be:able to designate.the Bonds as "bank qualified" :obligations.. Bank qualified. status broadens the market for the Bonds, whichcan result in lower interest rates. Rating: We.recornmend..selling. this issue. non -rated as the cost .of the rating would.not be expected to be offset by the potential lower interest: rata resulting from obtaininig a rating: For a larger bond issue, or a .longerAerin bond issue, a rating might broaden the market for the:Bonds and result in an overall reduction in interest. costs: Presale Report June 20, 2017 City of Gem Lake, Minnesota Page 0 . 1 Basis for Based on our knowledge of your situation, your objectives communicated to us, Recommendation: our advisory relationship as well as.characteristics. of various municipal financingoptions, we are recominending. the issuance: of 'general obligation bonds as a suitablefinancing option for. the following reasons: 0 The .City's policy and past practice. has been to finance municipal projects like this with this type of debt issue. • This is. a cost-effective option among the: limited other options.available. to.finance this type of project. General obligation bonds provide the lowest possible 'interest cost. Method .of To: obtain the lowest interest cost to the City, we will competitively bid the purchase Sale/Placement:. of the Bands from local and national underwriterslbanks: We have included an allowance for discount bidding equal to 1.50% of the principal amount of -the issue. The discount provides: the underwriter with all or a portion of its compensation` in. the transaction. If the Bonds are purchased at a.price greater than the minimum bid amount (maximum discount),. the unused allowance may be used to louver your borrowing amount. Premium Bids:: Under current:market.conditions, most investors in municipal bonds: prefer ".premium" pricing structures. A premium is achieved when the coupon for any maturity (the interest rate paid by the. issuer) exceeds the.yield to the investor, resulting in a price paid that. is greater than the face value of the bonds.. The sum of the amounts paid more than face value is. considered "reoffering. premium." For this issue of Bonds, we have been .directed to use the premium to reduce'the size of the issue, The adjustments may slightly change the true interest cost of the original bid, either up or down. Review of Existing Debt: We have reviewed all outstanding indebtedness for the City and find that there: are no refunding opportunities at -this. time. We will continue to.monitor the market and the call dates. for the .City's outstanding. debt and will alert you to any future refunding opportunities.. Continuing Disclosure: Because the amount of the Bonds to lie issued is less than.$1,000,000, this issue will be exempt from the Continuing Disclosure requirements of the Securities and Exchange. Commission (SEC). Presale Report June 20i `2017 City .of Gem Lake, Minnesota: Page 0 . 2 Arbitrage Monitoring: Because the Bonds are tax-exempt obligations/tax credit obligations, the City must. ensure Compliance with .certain Internal Revenue Service (IRS) rules throughout the life of the issue. These rules apply .to all gross .proeeeds ofthe issue, including initial bond.proceeds and investment earnings .in construction, escrow, debt. service, and any reserve funds. How issuers spend bond proceeds and how they track interest earnings on funds: (arbitrage/yield restriction compliance }.are common subjects ofIRS inquiries. Your specific responsibilities will be detailed in the Tax Certificate prepared by your Bond Attorney and provided at closing. We recommend that you. regularly monitor compliance with these rules andlor retain the.services of a .qualified firm to assist you. Risk Factors: GO Pledge; Because the Bonds will. be general obligations of the City for which its .full faith, credit and.taxing powers are pledged; if the..:annual revenues:.collected are not sufficient to pay the debt service payments, other City funds will need to be used. Other Service Providers: This debt issuance will require the engagement of other public finance service identifies those other service providers, so. Ehlers, can Providers. This :section. coordinate their engagement on your behalf Where you have previously used a particular firm to provide a service, we have assumed that you will continue that relationship. For services you have not previously required, we have identified a service provider. Fees charged by these: service providers will be paid from proceeds of the obligation.,. unless you notify us that you wish to pay them from other sources.. our pre-rsale bond sizing includes a good faith estimate of these fees, so their final Fees. may vary. If YOU have any questions pertaining. to the. identified service: providers or their role, or if you would like to: use a different. service provider for any of the listed services please contact us. Bond Attorney: Kennedy. & Graven Paying Agent: Bond Trust Services Rating Agency: This issue will not berated. investment Earnings: To more efficiently segregate funds 'for this project and maximize interest earnings we recommend using either your ,local :banks or Ehlers Investment Partners, a subsidiary of Eiders; to assist with. the investment of bond proceeds until they are needed to pay project costs. .Summary: to l_ie.made by the Council are as. followscept 7The.decision§ ormodify the finance assumptions described in this report.dopt the resolution, attached to this report. Presale Report June 20; 2017 City of Gem Lake, Minnesota Page 3 This presale report sumrnarizes: our understanding of the. City's objectives for the structure. and terms of this financing as of this date. As additional facts become known or capital markets conditions change, we. may need to modify the structure and/or terms of this financing to achieve results consistent:with the City's objectives: Proposed Debt. issuance Schedule Pre -Sale Review by City Council: June 20, 2017 Distribute Official:Statement: Week of July 3, 2017 City Council Meeting to Award Sale .of.the Bonds: July 1$, 20.17 Estirnated Closing Date: August./., 2017 Attachments Sources and Uses of Funds Proposed Debt Service Schedule Bond Buyer Index .Resolution Authorizing Ehlers to Proceed with Bond Sale Ehlers. Contacts Municipal Advisors: Disclosure Coordinator: Financial Analyst-. Todd Hagen Rebecca Kurtz Chris Mickelson Charissa Brookley Alicia Gage (651) 697-8508. (651.) 697-85.16 {d51] 697-8556 (651) 697-8573 (551) 697-8551 The Official Statement for this financing will be mailed to. the City. Council at their home address or e-maned for review prior to the sale date. Presale Report June; 24, 2017 City of Gem Lake, Minnesota Page 4 City of Gem Lame., Minnesota �$51 5,ga4 General Obligation Tax Abatement Bands, Series 2017A 15 Years - Competitive Sale Assumes Current Market BQ "Not Rated" Rates plus 25bps Sources & Uses Dated .0810112017 1 ❑elivered 08101/2017 Sources Of Funds Par Amount of Bands $.5j S,6U0.06 Down, Payment Contribution 300;0RO.D0 311,7.60.00 Contract fored.Contribution. ��;tis,rnu,go Tat�Sogrces Uses Of Funs T tal Underwriter's Discount {.1.506% 00 7,500.OD Casts of.Issuance 18,500.00 .1 1,14000AQ06U Dcposit to Projcct Construction Fund 475.Q0 Rounding Amount City of Gem Lake, Minnesota Total Uses Series 2017A GO Tax Abate I SINGLE PURPQSP j 611412017 E 10,M AM EHLERS LENDERS IN PUBLIC FINANCE $515,000 General Obligation Tax Abatement Bands, Series 15 Years - Competitive Sale. Assumes. Cu rrent Market BQ "Not. Rated" Rates plus 25bps. Debt Service .Schedule Date Prind S1,I26,?700.U0 Total P+I Fiscal Total 08/01/2018 - 13,505.00. 13,505:00 - 021�1I2019 25,000M 1..A50% 61752.5.0 31175250. 45,257.50 08101l2019 - - 6,57 i 25 6,5.71.25 - 02/01/2420 30,000.00 1.600%. 6,571,25 36,571425 43,14250 City of tern Lake, Minnesota aslatrza2o 0210112021 .30,000.00 .1.750°/o fi,33115 36,331.25 42,662:50 0910112021 - - 6;06B..75 6,068.75 - 02/01/2022 30,000.00 1.450°/u 6,068:75 36,068.7.5 42,137.50 08f0112022 - - 5,776.25. 5,776.25 - 0210112023 30,000,00 .2100% 5376.25. 35,77625 fl,552.50 08101/2023 - - 5,461.25 5,461.25 02/0112024 35,000.00 2.3009'° 5,461,25 40,461.25 45,922.56 08101/2024 - - 5,058,75 51058.75. - 02/01/2025 35,000.00 2.45001k, 5,05$,75 40,058.75. 45;717.50 0816.1f2025 - - 4;630.00. 4,630.00. - 02101f2026 35,000.00 2.600%° 4,630.00 39,630,00 4.4.,260.00 08101/202.6. - - 4;1.75.00: 4,175.00 02/01/2027 35,000,00 2.700% 4.,175.00. 3.9,175,00 43,350.60 08/01/2027 - 3;702;50. 31702.50 - 0210112028: 35,000.00 2.9W/o 3,702.50. 38,702.50 42,405.00 68/01/2018 - - .3,195.00 3;195.00 - 02101f2029 35,000:00 3.000% 3;195.00 38;t95.00 41,390.00 08101f2029. _ - 4670.00 2;670,00 - 02/01/2030 40200100 3,150% 21670.00 44670.00 45,340:00 08f0112030 - - 2;040.00 2;040.00 - 02101f2031 .40,600.00. 3,250% 2;040.00 42,040.00 4080.00. 08/01/2031 - - 1,390.00 1,390.00 - 02J01Y2032 402000-00 3.4D09° t,300.00 412390.00 42,780.00 08)01/2032 - - 710.00 710.00 - 02/01/2033 40,000.00 3.550%. 710.00 40,710.00. 41,420.00 'fatal S515,000.00 - $135,817.50 $650,817,50 - Yield Statistics Band:Year Dollars $4,07.5..0 AverageIife 9.024 Years 2.9223776°/° Average,. Coupon Net. InteresICast.(m1Q 3.0885960% True.Interest Cost. (TIC) 3.:08919680A Bond Yield fbr.Arbitrage. Purposes 2.89..39.94q% A111nclusivc Cost,(AIC) 11 3:5736788% IRS Form 8038. 1�fetlnterest_ Cost 2'9223776% Weighted Average. Maturity Series 2017A GO Tax Abate I SINGLE -PURPOSE i V14M17 [ 10:06 AM EHLERS LEADERS IN PUBLIC FINANCE 9.024 Years City of Gem Lake, Minnesota $515,000. General Obligation Tax Abatement Bonds, Series 15 Years - Competitive Sale Assumes Current Market BQ "Not Rated" Rates plus 25bps Debt Service Schedule. 105% Date Principal Coupon Interest Total. PSI: O►rerlevy az1D112D1s - 0216112019 25,000.00 - 1.45.D°/o - 20;257.50 _ 45,257.50. 47;520.38. 02/01/2020 30,0000o L600°/0 13,I42.50 43,142,50 42,662.50 45,299.63 44;795.63 0210112021. 30,000.00 02/01/2022 30,000:00 11750% 11950% 12,662.50 1.2.137.50. 42,137.50 44,244.38 02101/2023 3010D0.00 2:1.D0% 2.300% 11;552:50 10,921.50 41,552.50 45,922.50 43,630,.13 48;218.63 02/0I/2024 35,000.00 02/01/2015 35,000.00 2.450% 10,117.50 45,117.50 47,373.38 02/01/2076, 35,000,00 2,600% 9.260.00 44;260A0 4.6,473.00 02101/2027 35,000.00 2.700% 8;350.00 43,350.00 45,517.50 02/01/2028 35;000.00 2.900% 7,405,00 42;405.00 44,525.25 35,000.00 3.000% 6,390:00 41,390.,00 45,459.50 .0210112029 07)0112030 40,000.00 3;150% 5,340.00 45340,00 .47,6.07.00 02/01/2031 40,000A 3.250% 4,080.00 44,080.0.0 46,284.00 02/0112032 40,000.00. 3.400% 2,780.00 42,78.0.00: 44,919.00 02/0112033 40,000.00 3.550% 1,420.00 41,420.00 43,491..00 Total $515,000:00 - $135,817.50 5650,817,50 5683;358.38 Significant Cates 8/01/2017 Dated 8101C20.18 Firs; Coupon We Yield Statistics Band Year Dollars $4.;647.50 %P24: Years Average Life 2:9223776% Average Conport Net.Intefest;Cast (NIC) 3 088596.0% 3.Q8.91.968% Tne Interest CoW(TIC) Bond.Yield:for Arbitrage Purposes 2:$939943°/0 dill.Iriclusiye:Cost: (AiC) 3;5T367$Oa 1R$-Form 8038 Net.Intefesi Cost 2.9223776°/0: City of Gem Lake, Minnesota Weighted Avga9c.MatWitY Series 2617A GO Tax Ai?ate (: SINGLE: PURPOSE j Oil412011 1 10:06 AM 49 EHLIERS LEADERS I P116LIr FINANCE 9.024 Years r� Y L4 �Ivi ral O Council Member Resolution No, 2017 - 06 introduced the: following resolution and moved its adoption: Resolution Providing for the Sale of $51.5,000 General Obligation Tax: Abatement Bonds, Series 2017A A. WREREAS, the City Council of the City of Gem Lake, Minnesota has heretofore determined that it is .necessary and ekpedient to issue the City's.$515;000 General Obligation Tam Abatement Bonds, .Series 2617A (the '.`Bonds" ), to finance the acquisition of land to be used. as a public park which. will benefit certain property in the City;. and. B. WHEREAS, the City has retained. Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as .its independent municipal advisor for the Bonds in accordance with Minnesota Statutes, Section 475,6.0, Subdivision 2(0); NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gem Lake, Minnesota, as follows: 1, Authorization; Findings. The City Council Hereby authorizes Ehlers to assist the City for the. sale. of the Bonds. 2: Meeting. Proposal_O_pening. The City. Council. shall meet at 7;.00 p.m. on July :18, .2017, for the purpose .of considering proposals for.and:awarding the sale of the Bonds. 3. official Statement. In connection with -said sale., the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of'an official statement for the Bonds and to:execute and deliver it.on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by City Council Member and, after full discussion thereof and upon a vote being taken thereon, the following..City Council Members voted. in favor thereof: and :the .following voted. against the same: Whereupon said resolution was declared duly passed and adopted. Dated this 2-0111 day of June., 2017. City Clerk Resolution No. 2017 - 07 Council Member introduced the. following resolution and moved its adoption: Resolution Providing for the Sale of $515,00.0 General Obligation Tax Abatement.Bonds, Series 2017A A. WHEREAS, the City Council of the City of Gem Lake; Minnesota has heretofore determined that it is necessary andexpedient to issue the City's $515,000. General. Obligation. Tax Abatement Bonds, Series .2017A the "Bonds"), :to finance the acquisition of land to be used as a:public .park.which will benefit certain property in the City; and B. WHEREAS; the City has retained Ehlers & Associates, :Inc., in Roseville, Minnesota -.("Ehlers"), as. its independent. municipal advisor for the Bonds ..in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gem Lake, Minnesota, as follows: 1. Authorization 1~indin s. The City Council hereby authorizes. Ehlers to assist the City for the sale of the Bonds.. 2. Meeting; Proposal Opel. The City Council shall meet at 7:00.p.m. w0uly 18, 201:7, for the purpose of considering proposals for and awarding the.sale of the.Bonds. 3.. Official Statement hi connection with said sale, the officers.or employees of the..City are: hereby authorized to cooperate with Ehlers and. participate in the. preparation of :an official. statement for the Bonds and to execute and deliver it on behalf .of the City upon its completion. The:motion for the adoption of the foregoing resolution was duly seconded by City Council Member and, after full discussion thereof and upon a vote being. taken thereon, the following City Council Members voted in .favor thereof and the following voted against the same: Whereupon said. resolution was dedlared :duly passed and adopted.. Dated. this 20q' day of Tune, 2017.. City Clerk