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HomeMy WebLinkAbout2015 06-15 CC PACKETCity of Gcm Lake. MN CM; Council Meeting.. .1011C 16th, 2015 r Call To Order of -City C'oi until Meeting — 13y Mayor Llzpen at .T; P.M. Call of -Roll W-pen _ Artie=.t�nn�lcy _ i._indilcr _w ^ Kuny. Bpsak .. _.._ Others in AttendafFee: Sign-up.8hert Approval of City Council Mir+jutes and Agenda City Conn cii Agenda for this meeting. (Acccpt.Age lit#a) • /lintttCS of th.eCi.ty.Cot,nc:il Meetiitg for?Nay • tilinutes of the spce6al. City Council Meeting in M,ty Comibittee Reports None. Olt! Business • Newsletter ideas. Public. Reairing • Public l:learing onthe ;%4,54 Report ,c • Public l:learing on extension of water (rom..along County Road E between Hoffman Road 1 East in White Bear Lake and Scheuneman Road in Gem take by the City. of Gern Lake in 2015 pursuant to Minn. Stat § 423.011 to 429,111. o Motion to approve Feasibility Report.. 0 Resolutivi 201. 5 - 09 Resoltitioti to order th c preparation of the plans and specs fot the installat6n of water in the Ilafft�iait�ScheutietnatL'Caittit� 1Zii 1 area in the City of Gem take • Public. Ilearing fc�t `I lie. issuance atici sale of senior txoctsit�g revenuc refirnclit)g notes series 2.015, ,uid autI10rizi11g the exccution. of�d.oeumen:ts Mating there -tea (:St. Andrews Village Project) Series 2005 and financing certain ether costs. �. Rcso.l tion ?0.15 - I0 Approving the issuance and sale • Resolution 2)015 - 1:1 W]Ilow Lan6:l lementary ,School New Business C'liftont�arsbn 111en - Audit Report • Claims for June 201'5 • Monthl.), Financial Reports • Presemat.ions: from the ljuhlic, rive niiliu.tes maximum presdrytatioh Upen Items for the Council 1N10-mbers to hring ulj, Future Council lllce.tings • ti't'ark.shop Mee.ting,ltri_�1 nth at 7:t]Q l,.rn. ! Next City Council Meeting, :lulV ?'1st at 7:O0 p,tn. Aid journmenc • The meeting ttdjckornt:d at __ _ City of Gem Lake City Council Meeting Minutes Tuesday, June 16, 2015, 7:00 p.m.. Heritage Hall, 4200 Otter lake Road, Gem Lake Mayor. Uzpen called the meeting to order at 7:01 p.m. Councilmembers Artig-Swomley, gosak, Kuityand*Lindner were present. Others in-attendance:..Justin Gese andRon Leaf,.S.F.H., City Attorney Patrick Kelly, Chris'Knopik; Cliftonl.arsonAllen, City:Finance Director Tom Kelly, members of the community and business.district, Sally Ackerman,. SGSHolaings.rohn. Birkeland, Widte Bear Floral; Ron Bartosch, Second Hand Tools; Gina Eiorini, Kennedy & Graven; Giogi Gochit$shvili, SGS Holdings;'Steve Osterkamp, Summit Mini Storage, Janna Severance, Presbyterian Homes; and Sheila Waldoch, Moldings, Doors & More. June 16. 2015: Agenda A motion was made by Councilmember Lindner, seconded by Councilmember Artig-Swomley to approve the agenda. Motion passed. City Council Meeting Miniates, MU19,2015 A motion was made byCouncilmember Antig-Swomley, seconded by-Councilmember Linder to accept the minutes from the INray 19,015, City Council meeting with no changes. Motion .passed. Spscial City un it Meeting Minutes,May 12.2015 A itiotion: was made by Eouncilmember Artig-Swomley, seconded -by Councilmember-'Uhdner to accept the Special City Coundl.nmeet4ng minutes. for May 12, 2015, with no changes.. Motion passed. Committee Report None Old Business Newsletter - Possible -articles- profile of June/July Artisan.Home Four, update on water; dog license reminder, audit,.coritribution to Willow Lane, St.:Andrews project, 35E closing authored by Councilmexiiber Lindner, Vadnais Heights cell. tower location:and in.formation,.seal coating. City of Gem Lake City Council meeting minutes -Tuesday, June 16, 2015 Page 1 New Business Ja t Ron :Leaf, ftom S.E.H. present�i* the results of the City of Gem. Lake NPDES PhaseA Storm. water Permit MS4 Program'. The public comment period is open.fr.Qm now #11 June 29,.2015.. Councilmembec Lindner reminded residents:of Gem Lake and otheucomrnuriities,#hai are within the watershed district that WLAMO:has a cost sharing program on rain. gardens/landscape grants and will reimburse residents up to $1,000 on an approved project. Mayor Uipen opened. the.pubk hearing. on MS4.report at 7.:22 p.m.; no public comments were. made. Upon motion by Couricilmernber Artig-SvirorriTey, seconded by Councilmerriber Bosa`k, the public hearing. was closed at 7:24 p.m. Public Hearing -- Extension of Water from Along County Road E between Hoffman. Road East in White Bear Lake and Sch=Omazi Road in Gem Lake by the City of Gem Lake in .2015 pursuit to Minn Stat § 429.011 to-429:11; Justin Gese of S.E.H: presented: a brief summary of the water extension project. City Attorney PatrickKelIy provided. -AA overview of the public -hearing process. At 7:33 p,m. Mayor Uzpen opened up the public hearing for comments. Sally Ackerman, SGS Holdings, stated she was -Mee. is learn more about the project. In terms.of. :whether or not water is necessary she doesn't believe it is and. feels it is.. fine the way it is:. She - didn't. know about the cost effectiveness of the project. Asked how the cost will be allocated, how many parcels will be assessed? When would .be.assessment. hearing take place? In her opinion it seems like the small business..ownexs don'-t.want-to do #his.. Giogi Gochitashvili, SGS Holdiigs; asked about possible grant -monies. from theState: Sheila 'Waldoch, Doors, Mdidfngs & More; 3588 Highway 61 North, Gem Lake, aasked-it S.E.H. looked at getting water from Vadnais Heights. Why a hy..rant at Cafe. Cravings? Feels ies a good idea but wants to be mindful that we are struggUng*businesses and have to consider the expense of adding water. Ron Bartosch, Second Hand. Tools,1-601 County Road E E, Gem Lake, staWd lie thought there was a lot of time and.iiesources spent on a small. area of the.city.. Asked about -whether there wvas:a:plan for the area. Was there future plans:for water in. any -other area of the -city.? - City of Gem Lake City Council meeting minutes - Tuesday, tune 16, 201S Page 2 Steve Osterkanip; Summit Mini Storage, 3716 Scheuaneman Road, Gexn Lake, Concerned with the costs, trying td improve his propertyy� concerned about raising rents44. offset cost of iniprovemOnts5. Johri Birkelaad; Wlvie Bear Floral, 3550 Hoffman Road, Gem Lake. Important to have water for protection from afire, a business. isn't like a home, solvents etc.. are stored at.a business. Stated the ekample of the recent fire.in Lino Lakes with Burgess Greenhouses.. Fimwrvices had to truck water in by pumper, no city water was. available to fight the fire:thereby:-considerable more damage was done 'to the property: Justin Gese/Councilmemter responses: Assessment is determined by size of acreage, about thirty parcels will be assessed, the eastside of Higbway 61(the whole business district.. The assessment hearing will be held in mid -September. Yes, but the proximity and. quality presented concerns (Vadnais Heights water). A hydrant:# Cafe Cravings is io create an air. release. The city does have a comprehensive plan which -is available for viewing at the City offices. There is aspecific step by step prpcess: that=the city is dictated by law to follow. A motion was crude by Councilmembec.Lindner, secondedby Councilmember. ArO$-Swomley. tb close the public hearing. Motion passed, public hearing was closed at.-$:20 p4 , A motion was made by Councilmember Airtig-Swpmley,.seconrleci by touneilmember Lindner to. approve the fthol. feasibility report. Motion passed. Resoh Wn-201"9. resolutionto order the preratign of the Klan and specs for the i atallation of water in the Hoffnian/ScheuneMan&aUnbE Road E area in the City of Geri Lake A.motion was made by Councilmember- Lindner, seconded -by Courici.linember. �osak-to approve Resolution 201.5-09.. Voice vote taken --.Ave yea responses. MOtiori approved. Public Hearing for the.issuance and sale of senior hQnsingrevenge refunding notes series, 2015, and authorizing the.execution of documents: relating thereto (St. Andrew's Village Project) Series 2005 and .financing certain other.costs Resolution 2015-10 Gina Fiorini, Kennedy &Graven presented a brief overview the process. Mayor Uzpen opened the public hearing for comment at 8:29 p.m. No comments from the public. A motion was made -by- Councilrnember:Artig-Swomley,. seconded. by Councilmember B`Qsak to. close the public hearing. Public hearing was;closed at &3. 0 p;}n. A motion was.made'by Councilmember Bosak, seconded by CouncilXnember Ar#jg-Swoi3Aq to approve.resolution 2015-10. Motion. approved. City of Gein Lake City Council rneeting m.inu.tes-- Tuesday, June 15, 2015. -- - - Page 3 Resolution 2015-11— Willow Lane Elemental School A rnotiod was -made by Councilinember Artig-Swomiey, seconded by Councilmember. Lindner to authorize the -City'Treasum-k-to distribute a portion of the gambling funds ($3,0.00) to Willow Lane Elementary School. Motion passed. N.ew .Business CliftonLarsonAllen :Audit Report Chris Knopik from Clifton, Larson and AHen gave aii overview: of the.City of Gem Lake's financial statement for year-end 2014. Claihis for June, 2015 kthot'ion was made by Councilmember Lindner, seconded by Councilmemtwr.Artig Swomley tia approve: the. claims for the month of June; 2015. Motion passed. Presentations* from .the Public Justin Gese, S.E.H. informed. the council that the neighborhood meeting scheduled: for July 9, 2015, will lie moved to September 22; 2015. This doesn't change. the fin4l outcome Qf the project, it is. just mgving the meeting. Umncilmember Artig-Swomley asked that the tax role be compared to. the current newsletter list. Gloria Tessier will make the additions/changes: The: City -Co ncil Workoiop scheduled for July 13, 2015, will be -cancelled. Next City Council meeting will be Tuesday, July 21, 2015. Adjournment Being there no other business a. motion was made by Councilmember Lindner, seconded by CounciImember Artig-S*omley to close the meeting at 8:58 p.m. Motion passed. Respectfull j subinitted, Glaria*Tessier City of Gem Lake City Council meeting minutes -- Tuesday, June 16, 2015 Page 4 City of Gem Lake City Council Meeting Tuesday, June 16, 2015, 7:00 p.m. Heritage Hall, 4200 Otter Lake Road, Gem Lake, MN Sign In Sheet CITY OF GEM LAKE, MN 4M City Hall - 4100 Otter Lnke.R.oad G"ei n Lal�c, IVIN 5511() RESOLUTION NO: 201.5-09 16 June 201:5. A RT5OLLY1IION T.O AOPROVE.Ti[E.EEASgXBIIa.lT1' REPORT ANIS OR-OL, R IMMOVEiM NT PREPARATION OF PLANS AND SPECIFICATION FOR CITY WATCR IN THE 1=IOFr, NIAN/S 11EUN.EMAN/COUNTY ROAD E AREAS 'IN THE CITY OF GEM LAK.K WHEREAS, T'he feasibility report to bring city water to the I-iofftrian/Scl-ieitileman/C'ottnty Road-I:arca for the City of Gem Lake has been approved. NOW, THERTrO-RE BE IT PESOL' VEll, that the City Council o the City or ion1 ale hereby orders the ii-ilprovciiients in th feasibility report anti requesis that SEtlE :prepare. plans acid specifications for such improvements. The motion far the adoption df the f6regoingResolution was offered by. -Councilor* XXX and..was supported by Councilor XXXXXX and was declared adopted based upon Clip. fallowing vote: _ .._.....-_._ .. -- NAME^ U7PEN.µ OSAK LI.N.DN.E.it KUNY ARTIG- f SW OMLEY Attest L Wli..l_IAM F. SHORT, the duly qualified City Clerk for -the City of Own Lake, County of Ramsey, State t,fMinnes . a. dohere by certify that the foregoing. Resolution is a true and accurate representation of action taken by the City Cduncil of the City of Gem Lake on the..date.-first «.ritten. �Jnne�IVILI.iAi1fi�'. &l-iC)R'1'. (.'aty .�..___...._....TM��.___....._. Look for us on the World Wide Wd b at gm1akeinii.arg Extract of vlilitltes of a Meeting: of the City Cotincil of the City of Gem I..ake;: Ramsey County:, Minnesota !'tIl ttant to -due call and notice th ieot; a regular meeting of'tile City Co4neil-orthe. City 6f Gene lake; IVlinncsota was duly held Ott .1-leritage [ I�tll, on Tuesday, .lure 16, 2015, at 7:00 u'rlock P.M. file following members were present,: and the f0f lowing were absent: During sifd mecting _,v _ introduced the fol.iowing reSolutiut! and n�cived its ad9ptiot .: RI~SO'LU rl()N N.O. 2015 - .10 RFSOLV FION APPROVING TH ISS 'ANCIs niNl) SALI✓ E)F S1N102Ii()ltSlNG RI VFNUTi RFFLINDING NOTES, SERIFS 2015., AN() Ai.TfHORIIING THE FX-hCUTION OF DUCLJ.MI-:.N-fS RI .LA INGTI�r.I21� I'O' (ST. AN.DJZFS W'VI1A AGC 1'7Z(J.rl=C'i� The -motion for .the adoption of the foregoing .resoItttiun 4VaS duly Secdncic�d by MCI]]1)e!' and a -her full discussion tlic:reof and upon vote being. thereon, the, following voted in favor thereof.taken• and th.e tollowirlo noted againSt thi! slime: whereupon :said.resolution was declared duly passed -and adopted. 411IN1:1..vi JSB NI t3:ij.7 RUSGI,I� I"ION APPR()VIN�U TIIIj`[fiS[?Av(:1 A IiJ SALL- C?P SEMOR HOUSING NOTES, SI.:1 3?S 2015 AND r11.�"l'HORIZI iO T1 I], l�.Xi C.UTION Or' DOCIUMEN"I'S kELATING THERETO (�`I'.=1NT�1trVi�'S it1L>�.ACX PROJE,,M) WIII REAS, (a) Minnesota Statutes; Chapter 462C, tis. amended (the '-AO"); confers upon epics the power to issue revenue bonds: to finance a prog.rain for the purposes Of planning, administering, making dar piirCiiasiiig loans with f•e.spect. to one or more multi -.faintly housing projectdevclopmenis(itnclud ng:nursi.ngkind asststeel living facilities). (b} 171c City C'otiricil (the "C (�u c "I") of the: City of Lein Loke.. kliiines0ta (the City") 118s. receiveda proposal that it issue its Senior 11:0usinir?. Revenue Refunding Note., $cries 2(?15 (St. ,'1ndrewls Village Project ['roject), in one or metre series. which may be taxable or tax- cxempt .(collectivOy. the "Note") in the aggregate amount .not to exceed S 1.0.000,000 to provide funds to be tonned tcy PSA. I lousing .&� Assisted I.iv-lrig,, Inc:... a PvfianesOta nonprofit corIvration and .501(c:)(3) [li;ga1117.2rtld)n (the "Burro xer") to (i) refund a portion of the octtstct.nditlt Senior Hod.sing Revenue C�cful�ding Bonds (St: Ailtirev�,'s Village. Project) Series 2005 (tli( "Priof Bonds") previously issued by the (.'.ity- of Nialito.medi, Minnesota (`M.ahtomedi") in order to rerinanc, the approximately 139-unit senior liou ing facility; eun'taitring 70 indepmdent living units, 44 assisted. living units. 25 memory care units.. and approximately 10,170 square feet of dal•eare space leased to St. Andrew's. Church located at 240 last Avenue' Mahtmedi.. (tile "Priije CY. and. (ii) fimtnce cc rtain.pthei' costs ielatedl to die. 'Project: ' (c) In addition, the Borrower has requested that file lwconomic Developinent DA Atithority of the. Town of White Bear, Minnesota (the "BOA-) issue a revenue Nate :(the ` F.- Niue`'} pursuant tci the Act on a parity basis With (lie Note; (d) 'tile issuance anti .sale of the Note by tie City, pursuant to the Act, helps provide access to affordable ]lousing fo seniors in the comilluiiity and is in the interest dif the City. anti the City hereby determines tO issue the Nutt and to sc1.1 the \ote to. Klcinl ank in Chaiilr�isseii... 't%,lii�iresota (the -Lender"), as pro��ided herein. I'hc :City will loan the proceeds cif' .the Note (the -'Loan") o the Boi'i-ower in order to- assist in refinancing -the Projeot; (rr) The City has been advised `by representatives. of` the Borrower that conventional, commercial *Finaming to pav the capital cost of the Project is available on9}r oti a .limited basis and at such high casts ofborroNIVing that the economic fcas.i.bili.ty of*operating the Project would be significantly reduced;. (f) Based oil representations onhe Bo trower,�nrr`pitbtic official ca.t the City kas. t ldwr a direct or indirect financial interest in the Project near will any pubt.1c official either directly or'ittdirectly benefit financially ftoni the Project: and (s,) A public bearing yin the Project vas .he d by the City on this date. after: n()tice was published and materials made available: or public inspcctiart, all as required by the Act .and Section 1.47(t) of the Intcrual Revenue Code of 1986- as aaiien .ed, ai. which Public 7 �l(,?9.11YI .4.Sk.1 NiA3?i 7 hearing, 11'1 those appearing wbto desired 'to speak were heard and written. conimenta Were accepted. BL: rC RFSOLV'FD by the City Council (tile "C'ouneii") of the City ofQem Lake:.. Minnesota. (the `'City"), -as folk Nxis: SECTION 1. LEGAL .AUTHORIZATION AND IYND1l1 6& 1.1 Findines. The City hereby finds, determiiWs and'declaies as fol-lows: (a) 17ne City is a municipal corporation and a. political subdivi§ion of the State: of Minnesota and is authorized under the Act to assist the. housing project herein referred to, .arid to issue and sell the Note for the purpose, iri the manner and upon the terms and epnditious set forth in the Act and in this Resolution. (b) JThe issuance and sale of the Note by (lie City, pursuant to the Act, is in. the best interest of -the City, and the City hereby detertnnines to issue. the Note. and to sell the Note to KleinBank in Chanhassen, Nlinnesota. or another bank in Minnesota (tile "Lender"), as proti ided herein. The City will loan the proceeds of the Note (the "Loan") to .the Borrower 'in order to refinance the Project. (.c) Pursuant to a Loan Agreement (thy; "Levan Agreerent") to be entered into between. the Citv and the Borrower, the Borrower has agreed. to repay the Loan in specified -amounts alid at specified tines sufficient to pay in. full when due the principal of premium, if any. and :intterest on the ;rote, In addition, the Loan Agreement contains provisions. relating to the maintenance and operation of the Project, indemnification, insurance, 'and other agreements and covenants which are required ot. permitted by the Act and which tine City and the Borrower deen� ace essary or desiral�.le fpr the refinancing of the Pro.i.eet. A. draft of tine Loan Agreement was available price- to this meeting. (d) Pursuant to a Pledga Agreemorit (the. "Pledge A'greetnent" ) to be entered' iota betwedA the City and the 1,ender, the City itas pledged ,and grapted a security interest in all of its rights. title, and interest in the Loan Agreement to the Lender (except for certain rights of indemnification and to reimbursement for certain costs and expenses). A draft of the Pledge*Agreement was available prior to this meeting. W Yursua nt to an amended sand Restated. Mortgage, Security Agreement and F iature Financing :Statement *(the -Amended and Restated .Mortgage'') to be r:?eeAeute d by Elie Borrower .in favor ol'the Lender, the Borrower has secured payment of amounts due under the. Loan Agreement. Note: and the EDA ;dote by granting to the Lender <t mortgage and security interest in the property des.cribed ilierein. A draft OT the Amended and Restated Mortgage was available prior to this meeting;; (1) Pursuant to. Minnesota Statutes, Sections. 471.59 and 411.656; -as amended: and Section 147(f) of the Code, Mlhtor>.nedi will coaduet 'a. publio hearing on. June 16, 2015 oft the proposed issuane c of tine Note to, among other things, refinance the Project which is lo�,ated within (lie _jurisdictional. limits of Mahtomedi; atn0 Malntoinedi will consider authorizing the ismiarice cif (Ine Note to re;fitiancc the Project and authorizing the 1 3 -Ib29i ii-.l JSIi \fA �:��-i executioti ota Joint Powors Agreement between. the City, the EDA and lviahtomedi. (the Point Pbwdrs-Agreement'1. A drat of the Joint Powers Agreement was.available {prior �. to this nlectiny. (g) The Note -will be a -speeial, limited.bbligation of'the* City. The. Note. shall not be payable from or charged upon any funds other than, the revenues pledged to tlxe* payment. thereof. not- sh 11 the City be subJect to ticiy liability thereon._ No Bolder of the Note .shall over helve the tight to compO.any excl:cise of the taxing powe.r.o:f the City to pav the Note or the interest tlaerpon,.nor to cnforce payment thereof against any property Of the City. The Note shall not constitute a debt of the City. within the meaning . of any costt.itutional. or statutory limitation. (h) It is desirable, feasible and consistent with. the objects and purposes of tlac Act to issue the Note for the purpose of assisting in refinancing the costs of the Pr(ject. (i) The pa ibonts under the Loan Agreement are fixed to produce,. reventie suff'icient.toprovide for the prompt: payrrtent.of'principal off, premium, iiatly, and interest on the ..Note when due, and the Loan Agreement also provides that the torrower is. regUired to poly ail expenses of the: operation arid. maintenance of the. Projeet, Including.. but without limitation adequate insurance.thereon and Insurance against all liability for injury to persons or property arising from the operation thetea�,. and all taxes. and special assessments lQvied' upon or -with respect to the Projcct and payable durw2 the term of the Loan Agreement. 0) "['here is. no. li:tigatiop.. pendingor. to. the: actual knowledge .of: the City. threatened against the Gtty'questionlng. the C.:it.y,S execution or.deliver, of -the ?rote, loan Agreement, the Joint Powers Agrc:epie:nt, or fledge; !Agreement or questioning the clue organization of the City, or the powers or authority of the City to issue the Now wid undertake the trausactiolzs eontetn.p.l.atecl hereby. (k) The. executiott, delivery and performance of the Qity's Obligations under the Note. Pledge Agreement, the joint lowers Agreement, and Loan:.Agreernent do .not and. will not violate any order against the City of any court or other .agency of eoverninent, or any indcnture, agreement or other iilstRirnent tci which the City is a party Or ley tivhlch it or any of its property is bound., or be: in conflict with, result in a breach of, or co.nsti.tutc< (with due notice or lap[ e oftitne or both) a-deffattlt under any :such indenture, agreoment or other instrument. 1.? Authori �'ltion and 17atificatii�n cif i?iaiect. '1'hc GNty hereby authdri;�es the RorroNver, in accordance with�tM provisions -of the Act and subject to the berms and conditions imposed by tla�e Lender, to provide for the refinancing of the Pv ject'by such means as shall be available to the. Borrower and in the manner determined by the Borrower; the C.`.ity hereby ratilzes, affirms; and approves all actions -heretofore taken by the Bogower gojiMstent.Nvith and in anticipation of such authority. .4 462911vl..AR MA335-7 SECTION Z. TRE-NOTE, 2.1 Authorized Amount and Form. -of Note. The Nate is. hereby approved' and shal I be issued pursuant to this Resolution in substaritiall.y the :form submitted to the Council With such. appropriate variations., omissions and insertions as are necessary and appropriate: and are permitted or required by this,: Resolution, and in a0ordanoe with the further provirsicins hereof; and the total aggregate principal amount of the Note that may be outstanding hereunder is expressl;• limited to $1.0.000,000.. unless a duplicate Note is issued pursuant to ,Section 20.. The .Note shall bear interest at -a variable -'rate as set forth. therein. 2.2- The Note. The Notp.-shall be dated as of the date of delivery t,a: the Lender, shall be payable at the times and in the nianner. shall bear interest at the .rate, and shall be subject to :such other terms and eonditions-as:are set Nall therein. 2.3 Execiition.. The Nbte'shall be executed on behalf of the City by the-sigrtatures of its Mayor and Adininistrator-Clerk and shall be sealed with. the: seal of the City;. provided that-tbe seal may be iptentionally omitted as provided by law. In case airy officer vthose signature shall apocar: on: the Note shall cease to lie such officer before the d4livcry of the: Note, such signature hail nevertheless be valid and ..sufficient .for all. purposes, the same as if :such officer had remained in office until delivery. In the event of the absence et disability of the .Mayor and Aclniinistrator=Cleric such officers p-tthe .City as. in the opiniort-of the City Attor0ey, may act in their behal f, shall without further Act .or authorization Of *the. Council exccute iA deliver the Note. 2.4 Delivery of liutial Note. Beforo delivery of the Note there shall be. filed with the l.ehder (except to the extent waived by the Lender) the lolloti+ping, items: (1) an cxecutp4 copy of each of the following documents: (e) the Loan Agreetrtent; (b) the Pledge Agrctement; (c) the Joint Powce-s Agreement;. ((l) the Attte:nd&iuld Resorted Mortgage; -(2) an opinion cif Ciounsel for the Borrower*as-pm-scribed by the bender and Band Counsel; (3) the opinion of Band Counsel as to the validity and tax exempt status of the Note; (4) a *501(c)(3) determination letter from the' Internal kevenue Service t from 1�1GI11C toxatioq Uq(i4t' SeCtlotl SOl ((>�(�� UJ' the Code; 461911YI 3Si3 MA355-7 r' ( � such. other documents and .opirtio ns as Bond Cconnsel .may rgapS )rlil}lly reqth uire for' of rendcring its opinion required in..subsectioit (1) above or that e Lender inlay reasonably require for die closing. 2.5 Disp !js ticin of Proceeds of -'the Now. .Upon delivery of the%Noti� to Lender, the Lender shall: on behalf .of the City, advance the proceeds. of the .Note to the Btorr(.Ywer or -at its .direction to refund a portion of the Prior Bonds in accordwice v6tli the terilis of the L oari Agreement. 2.6 Reuistration of Transfer. The City will. cause to be kept at the office of the Mayer and Administrator -Clerk. a Note Register in which, subject to such reasonable regulations as it may prescribe, the City shall proN Ide for the registration of transfers. of ownership of the Note. 1'he Note shall be Initially registered in the name of .the Lender and shall be transferable upon the (dote Register by the Lender in person or by its agent duly authorized in writing, upon surrender of the Note togdther with a written instrument of transfer satisfactory to the zblayor and Administrator=Clerk, dilly executed by the Lender or its duly authorized agent. The. following Toren of assignment shalf be silfficient for said purpose. For value reWiwd hereby sells, assigns and- transfers unto. the -wi.thin Note of the City of Crern Lake.. Minnesota, and does hereby irrevocahly constitutc. and appoint _ - - - attorney to transfer said Note on the books of -said City Nvith 1 111 pov,er of substitution in+the' premises. The undersigned certifies that the transfer is. made in accordance with the- provisions of Section 2.9 of the Rgsolt:ttion authorizing the issuance of the. Note. 17artc& Registered Owner Upon such transfer the Mayor and Achilinistrator-Clerk shall note .,the date of registration and the name and address of the new Lender in the applicable Note Register and in the registration blank appearing on the Note. 2.7 Mutilated. Lost or I.)estrotied Note. In case the Note issued hereunder shall become mutilated or be destroyed. or lost, the City shrill. if not then prohibited by law; cause to be -executed and delivered, a new Note of like outstanding.principal arrtount, number and. tenor 1.11 exchange and substitution for and upon cancellation ol' such mutilated Note, or in lieu of and in substitution tiir such Note destlx)yed or lust, upon the Lender's paying the reasonable. expenses and ,chard -es of the City in connection therewith; and in the. case of a Nine destroyed or lost, the: filing with the City of eviderice satisfactory.to the -City with indemnity satisfact.ory to il. if the. ihutilatcd, destroyed or lost Note has already matured or been called for redem-ptiori in - accordance with its terms it shaft not be necessary to issue a new Note prior to payment. 2.8 Ownei�sl_ ii!) o l. Note. 'The City may ileum and treat the Person in whose [lame. the Dote is last registered in the Note Register and. by notation out tho Note whether or -not such Nt4e. shall be overdue,..us the al? Mute owner cal' such Note for the: purpose of receiving payment of or' 6 16291 NI- JS11 MA355-7 on account of the Principal Bal..anco, redemption price or interest and for all other purposes whatsocti•er, and the City shall not bc*affected.by any notice *to the contrary. 2.9 Lim ation on Note '1 rahsf&rs. The Note Wifl be -issued to an "accredited investor" and without registration under.. state or Qther securi ties laws, pursuant to.iuz exemption. for SUe lr issuance. and accordingly the Note may. not be assigned or transferred in whole or part, nor tnay a participation interest in the *Noote. be given. pursuant to any participation agreement,.except to another =`accreclited investor" or " finanoal institution" in. accordance with an .applicable exemption from such registration .requirements and with full and accurate disclosure of all rnaterial facts to tbe.prospeetive purchaser(s) or transferee(s). 11.0 .Issuance of a New Note. Subject to the provisions d Section 2..9; the .City shall, at the request and. expense of the Lender, issue a thew note, in aggretiate o�iManding principal amount .equal to that cif the Note surrendered, and of like :tenor except as to number; principal amount. and the amount of the. periodic ins.tallnicnts payable thereunder, and registered it] the ri,anie of the Lender or such transferee as my lie ddsignated by the lender. SECTION 3. MISCELLANEOUS. 3.1 Severability. ff ahy .provision of this Resolution shall be held or deemed to -.be or shall, in fact, be inoperative or unenforceable as applied. in any particular case in any _jurisclictian or jurisdictions or iit all, jurisdictions car in all cases because it.conflicts with any provisions of any constitution or statute or rule or public .policy. or for any other reason, such :circumstances shall. not have the- effect of rendering the provision in. question .'inoperative ar unenforceable_ in tatty other case:. or c ircumstarice,. dr of" rendering any other provision or provisions' herein cbntailled invalid, inoperative, or. unenforceable to any extent whatever. The invalidity of any one or ia�cirr phrases ; sentences. clauses or .paragraphs in this Resolution ceitttpine?d shall pelt affect the remaining portions Uzi' this Resolution or any part thereof, 12 Authentication of 'Franscri nt. The. officers of the City are directed to. f:urhish to Bond Counsel certified copies of this Resolution and all documents referred to herein, and affidavits or certificatesas to all other .platters which. are reasonably necessary .to evidence the validity of the Mote. A-11 such certifi.ed Oopies, certificates and affidavits., including any: hcrctoforc furnished, shall constitute recitals of the City -as to. the correctness of all statements colvaineci therein. 11 Authorization to Execute Aereements. Subject to approval by the City ahec the public Bearing to he .conducted oil this date, the forins of the proposed Loan Agreement, Joint Powers Agreement and fledge. tlgYeetnent are hereby approved ill: substantially the form presented to the Council.. together with such additional details therein as may .He necessary and apptopriate and such niodificanoris.'theireot; deletions .therefrom and add i11Oris thereto asw may be necessary and appropriate and. approved by 13gnd 'C'otrrtsel prior to they execution of' the d0cunieiits. *rhe _N4a.yor 'and Adtiiin.iArator-C.'lcrk of the, City arty author•.it�.cd to execu.re, in the name of and on behalf cif the; City, the Loan: Agreement, the Joint Towers Agreement and the Pledge Agreement and such other documents as. Bond Counsel considers appropriate iri connection with the issuance of the.Note. In the event of the absence or disability of the 1ylayor and ,-administrator-Clerk such ()fficers of the City.as, in the opinion of counsel to the City, rnayf 7 461911+ E 1Sr3 i4 M555-7 :art on their behalf shall without further act or *authorization of the Council do. all things. and executo- all instruments and. documents required to be done. or. executed by such absent or disabled officers. The execution of any %instrument' by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval. of such documents in accordance vmdth the terms hereof 3.4 ualified Tax- 1 xemm Obli.gatian-. In order to qualify .the. talc -exempt por ion- of. the Mote as a "qualified tax-exempt obligation" within the rdeai mrig of Section 265(b)(3)) ofthc Internal Revenue Code of 1986. as amended he "C:odc"), the City hereby makes:the followhig factual statements and. represematiOds;. (a) the Note will be issued after.August 7; 1986; M the Note is not treated as a "private activity bond" under Section*265(b)(3) of the -Cbde; (c) the City hereby designates the tax-exempt portion of the Note- as a quaiificd YaX-(,,-aettipt obligation for l)iu-poses of-5c:ctioa 265.(t)(3) of the C:pde; (dj the reasonably anticipated amount of tax-exempt obligations (t-ther than obligations described in clause (ii) of Section 265(h)(3)(C) of. the Code) which.. wil.1 be issued by the City (and all entities whose obligations will be aggregated with those of the City) during the calmdar year 2015 will not arced $10,000 000; and (e) not traore. than $10,00000 of obligation issued by the City dUriDg the .caiendavyear:201 have beer[ *designated for purposes of Section. 265(b) (3) of the Code, 8 �6?ea I v1:1si3.�tA3�: -r Adopt!5d bX the City Council cif the CIty. of -Otnii Lake.. Minnesota. this I st day of June, Mayor ATTEST: Administratar-Clerk 9 46291 IV-1 AS11 IYA155-7 STATE. OF MiNN1 SOTA COUNTY 01 RAMSLY `CITY OF GEN I,AK13 1, thu undersigned, being,. the duly qualifcd -and acting Administrator-C:lcrk o.-f the.-Cityof Gem Lake, Minnesota, nU H.)r:REEiY CF,RTIi=Y that I have compared the attaclhed and f6regoink extract.ilf'minutes with the original thereof on file in my-offee, and that the same is a felt. true and complete transcript Ql` the .mioutcs of a meeting -oC the City Council duly called -and held on the date'therein indicated insofar as such*-niiitutes relate to a.resoflution authorising the issuance ofone or more revenue notes. WITNESS My`.hand this __ day of Jun.c. 2015. A (I111! Ili Str! to r4 l erk M 10 4629 11 v I.3Sfi N A35; 7 City of Gem :Lake, MN Resolution No. 2015 —I 1 A RPSf)1:UTION :A.t:;'1'1-10 RING 'I`l.•IE'CITY*'I`RI AS.tJ.RJaR '.I'O DIS1'RIBIJTF,-A PORTION OFTHE. GAMBLING Fk}ND4'1 ) WRA...Ow IANE. Fi.,EMEN"I"I2Y SCHOOL. Wl.I,ER-8A9, The City of Gem Lake participates in the:distri�utioiz ofgambiiog hinds. from the C:ountry l Lounge, WHEREAS, Ilie.Cily of Oem Lake,-di%Tibutes theso.funds to -local seho(}I.sw1d 61az•ities. BEv RI SOLVED, -that the City -.Treasurer is authorized to send -to Willow Lane Elementary School the amount. of $ i000.00 for the cities contribution for the year 2Q-I5, VVI II;AE.UPON, the abo'Ve resdlution was adppted at the. ,Lune l6th.reaular-City Cotmeil Meeting.for the Citv of Gen! lake; Ramsey Courity :Minnesota, niii&-by Council Member xax and. seconded by Coun.ei 1. Meinber :.cxx. /1J"I`I .S.I` I. W1111and Short, tlic..d.uly qualified City Clerk oI"thc City of (;e Ali L�ikc; County of Rainscy. State of kliritaesota_ do hereby certify tittEt the fbrego-ing resolution is a true and accurate representation. ofaction taken by the City Council of the. City of.Getn Lake on -the date first written. 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M cn — :� Z a, z m a Q 'o cn - cn q z O � ni mWA 0 Cy � x D D ZO n y z m m N Z� �� to to 0� rr- cm ,—m n z� z n N. z O0' O ' j ---mm O �4( Wt,f .p0p PQ V. ,(A CVO W O S � W Cpp�it O O C F O A Cr) 0 to S �. N NP S O 0) 0) �—;w d77 N > w o r CITY OF GEM LAKE CHECK REGISTER FOR JUNE 16, 2015 Check.#. Data Payee Cash Account Amount 9477 6/16/15. Gretcien Artig-Swomley 100-10160 277.06 9478 6/1.6/1.5 Faith A. Kuhy 10071:6100 277.05 9470 6116115 Robert L. Uzpen Jr -100-10100 45410 9480 0/1015 James A. Lindner 100=10100 277,QO5 948.1 6/16/15. Richard W, Sosak 100=10100 277:05 9492 6116/15 City of Roseville 100-10100 63.90 9483 :6116/15 City of White Bear Lake 100-10100 1,246.25 9484 6116115 Comstock & Sons Inc. 100-10100 80.00 9485 6/1611.5 Coverall of the Twin Cities 100-10100 175.00. 9486 6/16115 GECK, DUEA & OLSON 100=1.0100 1s 5.Q0 9487 6/16/15 -GLORIA TESSIER 100-10.100. 9.86 9488 6116/15 G & K SERVICES 100-10100 6.24 .9.489 6116/15 Innovative Office Solutions; LLC 100-10100 21.42 9490 6M6115 Inspect MN & Midwest Soil Testing 100-10100 2,385.00 .9491 6/16/15 .Kelly &,Lemmons; PA 100-10100 5,207.13 949..2 6/1.6/15 Metropolitan Council 100-10100 3,526.00 9493 6/16/15. Gopher State, One Call 100-101100 A35 9494 6t!6/15 Press Publications 100-10100 374.85 9495 6/16/15 Centuryl-ink 100-10100 201.72 9496 0/16/15 Ramsey County 10o-ib} o0 16,596.49 9497 6/16/15 SEH 100-10100 12,332.56 9498 6/16115 T.A..Schifsky &Sons; Ind. 100-10100 1,040.00 9499 6/16/15 Waste Mdriagement of WI -MN 100-10.100. 712.05 9500 6/16/1.5 White. Bear Township 100-10160 6,050.13 9501 6116115 Willow Lane Elementary 100-10100 3,000.00 WHITE BEAR TOWNSHIP UTILITY 9502 6/16/15 BILLING 100-10100 96.93 9.50.3 .6/16/15 Xcel Energy. 100-10100 427.05 Total 55,335.17 �. CITY of GEM LAKE CAS1iAND INVESTMENT BALANCE:STATEMENT As of 05/31/2015 Fiscal Year: 2015 Cash and Investments Balance Bailance 1\'.ime of Fund 511MV Receipts Disbursements 5/31/2015 General. Fund S?4b,769.60 S49.229..79 S49;690.24 $246309.15 Par", and Playgrounds S38,996.53 S0.00 $0.00 $3.8,996:5 2004 Debt Service Fund (52-5.434.68) S.0.00 $0.00 ($25,43 1:68) 2006 Debt Service Fund S 17,95$< 15 S.0:00 S0.00.. $17.954.15 2007 Capital improvement.Bandss 52,8216.1 S000 $0,00 $52.S23.61 Improvement Fund S.130,398.18 S0..00 $0r00 $130,13.98.18 City Hall Construction S0..00. 50:00 �0.0� SU:QO Sclteunetnar< Road lntpravetnetns S3,:125:18 $0.00 $0.00 53,1.25.18 Hofftnan Road lmlirovements ($24:106.94) s0:00 S29,05590 (S53,162$4) Sewer Enterpriseprise FundS410,443.5b $5ti496.01 S18,184.78 $397,752.79 lnvestm6it Trust Fund. S3.003:.10 S2. l0 $0.0.0 $3,005.50 $853.,972.19 S54,728.20. S96.932.92 $811,761,57 Premier. Checkin-, S89,539:92 Prenti.er CD'.s $0.06 Wells Fargo Investments fii60.006,00 Wells Val -a Moncv Markei S 162,227.65 - SS i 1,7b7.57 9M ANCC;STATEMENT.OF GAMBLING FUNDS Balance Balance 51-1/201`5 Receipts Disbursements 5131/20tS GFttnblint, Find Matte' S4,31.8.73 50.t?0 S().00 S4;319.73 --- - — 1,W(CASH 8 INVESTMENTS b1c7UF2F PURC![ INT. t Afi OF ACCRUED WTEPEST OAi E VA?[ UANKIOFiOKER TYPE NAME C.Sip V Y1E1.1i RATE GAYS M112015 lJJTEREST 6ATF _PREMIER RANK CHK �GFNF.RAL FUND 6p0�570 pOS96 � 0.051.E 30 SB9,5'992 53.73 J1crf:d,� S•!ci_1 S F ARGO 141,10 PRIME IF1�5TMENT FUND _- _ - 12370.2:6. .•„ Qaj!% 0.t11% 30 �S162 227 65 St.72 1.e:attni; 1171116 11-M!,,WELLS FAkGC '66 'SANTP.NUER 8026].;C•1.'9 0ff'-so.6 O,bO?5 365 S175,00000 5437.50 ! otw-() 1 �;49/1 1 13 115'+ELLS FARGC CLl (sE CAFFTi.L BA"Jk: 3o150Y.'(44 l:3S°l 1.35% 14E1 545.000.00 . Ea1!0 t07!1? 10;17l*.WELLSFARGO CD GO[ OMANSACHS 23141AN27 • 1626 S0.0Q000 5.-750.0414/12WELLS opi1t7 : d!412Z FARGQ C7 . F40.000.00 $560.00 4.'4510'4 t G6°G 1'.06' 1 227 S81 + 767.57 53,451 -,0 m On of (icm LAC GENEILM. FUND 140Tg Lecl Statement 5nd Exr.cnditures Fnr the Fi,�,bhmIll slGlding hlan 31,201. 51 CIE Mall t 'urr 4 1 t1 j:urT 4nth -V 13 1_1j) Nj,l) JI1 1901 rNmlal Vann %-L(11_1MISLIS fit '•t i L1111nl Vi3r .JCL '�C'gn ilctC Prolrcrty Tatars ("anal Pruperly faus S 1.6.6(Xi92. 5 000 16.NY. 1.9' 00v S 11 211.01) $ 9.OD 199.211.0(I (I (,0 Fiscal lyoparily i:axcs 453:417 s).t!u -03 67 U:ill) S,aa.t:uct 0:00 5.44400 0.06 Licenses and Pcrmitr Gclleral fidsmoss 141 67 UL'C} 1'41.G� t`-UO 1:7w,(1(i ' 50D00 (8OU:(101 147Ob 011-5a1c l,aluot Licensc 36667. oco 166457 (1.(1(1 4.4, 1006 i,Jgi, O{i .fl,ib?O.uU) 1"73 01? s;llc Liquot IJLrenses O;Ou (1 CD 91NI ().UU (! ilia ^O:j o() (2000) Other Permits 83 a3 0.00 83;3x b 01J' ;.(((;u 1:1U l ou 0u 9(11Jw 10 0t1 Tobacco (.ICC7MV 41 67 0.00 47 6'+ U:UO 511U (xi 2(0.00 30000 40 ul! Chantclble Gambling 1.Iccow J 1 b7 U 00 41.67 0;Ot) O.U[! 500.(Kf 0 Ctf ('antr(clor l.ueasc S: 33 Ui10 83.33 U.UU .1,000.00 4_000.01) 0.00 t(in 110 Bulldmc 11,:rntits b6h r17 332 65 334 02 f19,tO 9.011!l.tui 4,963 80 3:096.20 GI 30 PlwnhinLPeflmlts 4167 2500 1667 60.06 ;'Jiii"i 575.00 (7.3.00) 11`OO �1:rhamrd 110miits J i.67 0 Co 4 L.67 0.00 i(w.(G .2.i57 ou j2m0u)) = t 1.4f, Eactl:irlEE'rrfiu(v [1.1:F7) 1-15.UU 4130.fii; 544.00 1194.li0). NPUES Permit I is 67 (1 C 0 16-67 U UO ^116 rl(I 0.00 200.00. 0 us; auildinz Plan Res inc 0.00 U 00 O Gil 0.00 11 f)(1 2.705 14 (176_14). U On Fire Nfam dl In:.0eclio❑ 20O,Ou (47i00) 1:7%.i;0 {_,7.1�0) -.46000 35J.50 2.6•10.50 14 3 Sep((c Inmpccnon Fec 250.00 3,D5t3.00 (2,7�;1).00'r 1,200lu. 3.00D00 3.0t`O.0 ((,U.(K)) IU2 ril> Sl:uc l'cnm( charrc 4-17 31 1'• (17 a(11 517.63 SU Qb ud 07 (12.07). I3R 14 Adill; ms,rm,on ! c. 3133 OOU 33 33 0.01) -wo.UO D t0 400.00 010 Scher ( 011(faetof 1 lccnse 33.33 0 0U 3..1 33 0.(i0 40u.(R) o OU 400.Uf) 0011 Uuc. Liccn.ses 12 40 1'_(1 Un. t 107 01 96(1•()f) ISOM 120.00 YOY1 8U.CiU Intcrgcncnimental Rctcnnes C b(i TV Ptanclmr I cc, 411+.67 UAO -11667• U.00 4;.0 O,UU 01x) 3 0(J0P7 t) G`f I'ohct SI, (e Ald -4 .4,03 0 ut) .1841)8 0.00 5. 1{1?,iI1J •1.4U1.().D 140K 0 7S 7t, ('harges for Seri iecs 11Ial,ninr.I"R*c'5 k33 (1.DO 8.33 110) loofiO 0*06 1090i rill) !'hm F.c,tcu I_'S.uU i)tiU 125C10 1).00 I,SORr.10 tI.00 I.SUQtK) 01r) Vleo°SuPlli:s D.00 0(1U ODU. O.UO 0.(O. IA0it1U i1A0500) 0.0,, ltn:a:g (lmlut's 0 00 0 GO UAKI 0.Ou (.1(0 3,70.0.UU (,, 70C1 (1()1 L) 00 In%-sumcn( Adntln Clwgc 41,50 00i) 91.$0 .0.?JU 49.8:0G 126 °2!1 171.72 2 .3i, finr.� ;Ind Farfcil, I'Incs 1: t 1 7: i(i 114 17 2657 3Xh(N). 1.17� 5 2.327.75 )3:49 tliscrllancous I111.fe:.1 laming; .422 56 i !i(i d2_' 5(1 0010 > ti7U.Gt} 1.11)7:8 3•y6i 72 '`1,84 \il:cc t ncnuy 33 3.i 3i1 i i1 3.33 90D) 400.00 3>?S 31i•1.75 S.81 ImumaccNdie> Di,td:nds 2506 U,UO 2500 0.00 0.t117 O .tIUW 00 f:tcll;t,. Rena(I 000 (254 C0) 154.01) 'l) .(10 {) Uu 448:54 (44834) (1.(10 fola1 R'nMum _'U "i(J-1.33 y 92:72 18,071:61 l3 q? ZSI,932 (R) 36.739.11 .215.1!)2 39 la.S8 EXPENDIT111IFfi (,il, (•UllflfiF �l`atts:uui Saiane> 625 00 (SA6600) (1,111;t5.00 (873.6U) 7 SQuvb 534.17 6.,)6 $3 7 t' 1�ntpin.er 1'3id htsurwl,ne 47q? 9 AI` (390.9) 9159() 57S.bG 76' ;�: (;S7 :8) 133.Sy Atfnnnstraitm (1(tit W91 1 •0O 10.09 001 10. (,(p 601.00) ago F:Ice•tion5 [: unuuctA.5ern,ecs 1)()I,; u.IYJ OAK) O.tvt U•lttl �03 24 (803 24) (i.0+3 Ad:nml.vual(i+n B•)1.67 O.0(1 291.67 O{{0 3.Si1G00 0(YI :,.`•iHli:(i 0,U4 ! :gal Notices R. S3 0.19) R.33 0.14) liam 3(){ f1 (0,10 30.60 1:cilaus . Maul( - lolillutual 4593 (110) 4513 U_00 550,IKI 53ri O() 0;00 Finanrial ridniiitistratlon AvditinFScnz�cs 766.67 7,50D.410 jo.733,33) i7&.2G 91(�)00 ).21um t3U(St) IOG.i¢ Bi?�:Q7.te at 1 -0B.Isr9 Tim:wrial m, rvic;s cto mpliler servii-s Lg,t11 Sc il'icei prtM,'ea t I„Il Lela] OlvrklGericril Govermucat WzS, 3 and Salarl•:s 11br1.crs Compens;!t run P.mploicr Paid lnsurence PIRA Contrlhutiogs. of)ice SuPpllrs 1'o51o,c Prflloeiortal Scrc6o Adminmritinn 11 eh Stc '•flfcace 1,ulnpater 1.:L.fl tir:1L'i Pubric;A1011 tier::acilcf%I'r4illc Rc6tli�ms Cic,tcrd {,tandiri• lnstiralicc Vehicle Irs'.ironee Public {1t3icials. ! ia1i1111r4 1tt ti } d tm: Col l t'i ti on Leanne of .MN Cilica A0.1.{ Slhseflotlons GaolUillg Distributions 1' annin° +lnit %gtilkk I nl:fnc,*nrt'. Admmjn trnli'?n f3tlildlnr 11RIl:C601+9 i t�nu;S;Idntim,lr,uon I'PI)LS Adminlstrauon Rceording Stuctar. lleritxgc Half Qperatint Stlr,pli.•s Ilrotn5loaa11 Stn io ; Citmm" Scr•. r_:9. 1 ckpho6c 11ropca; Iasltr o.L! Fts't:)ric Scrvic, Gas Ser.iv, lhi,tcN�cvrr I, infra Rcpnirs E: 1,ltnnt Conlrar:aal E.:: pans k'•fa;al • I3uilJin- Police RcBu?;tr l.a,t Do Sp:c,al ! utt 1. 01C NIMlit Dr.1pald) lo;u5 I• i rc Fite Jcn ias I'ir4 4{uAaU Strv,Cx ;talntrrl ('anlruI Amoral Renlnt•al a rill l hhfii��errt nt Building tnpserlion Po ltdatc Inspk:oiou; 11114diac Seaelan conk utcr Dery ices Cttn of 0,nl 1.1-.I:c GENERAL FUND 11milgcled Siiucinent tll 1 ntmics aril FxpenJiluro EnriheF!cc Mnnths 1:nJit!n 8ftt, i I. 20li' lilldf}I 1CltI;Sl V.:iS11llt �'n C gal kIc [ill(Igii 1>\Ct,faj. Yarigue('••,r, r l;, 2.333 D. s 17'_ 14 {2 u :8 81) "1 66 14.6)0 00 t,S+iti 34' I$,lo1.k� S 3.33 (3.0 N 4" 7 ,.?,3 1 oorl.i,u 11)1 .70 908.30 !' 166 67 t,.00 186 67 f1 ill) 2.ttDO 06 23500 1,765.6(1 11 7" 1.23U.f10 0.01? 1,2S11 f:i, J..01) I5.tJu).Ut+ 5;707 l.i v.293.87 3:{ {)? (,Oki 01) 7;'97.555f: 146v0 ;0j NOW 31.=UU ptl 7,451 9f 23 71 S r,4 : 3 y8 S;.3i 2ls.r)1t (11467; 2616fj I,{uUli1l 119'00 7s2Utj 21 vri IvS t92 (Cf15.44) 864.36 f.334 53) 2,, 7 (;p (G65.44) 3,t?<,= 4.1 127 8ti1 19500 0.00 1115 0( O.uU '_'. S4u.U(r U.00 2,340.0u (t.t10 g; 33 257.26 CO3 93) 34471 I dWI.Ut, 365,67 633.33 36 67 s133 «I(i.&7 �127.54) 243-04 1c':rt,00 sas.go 4920CI ;(1G, 831i to 00 8333 0.00 1 ooi)on fl00 l+l(li1(!(, No 0 00 p on (I Q)G 0(i () r?fl a 5'i 00 Ig5ii 00). 0 (kt 58 33 1004-10 (41 67) 171.43 7CN1 (9) 418 S5 281 15 Sq 84 17 17 25 11 92. 59 Ill it) (N) f.7 86 2S2.14 1`i.31) 205 1.7 0 ou 205.17 tr;70 :,462 06 4.11S.3.37 i 1. 21.37) 165 S6 41 67 0(0 Al 67 (1.u0 5r)UL9I 114; r,i 1;4 4S 27 1u 125 <1 1 _154.4 i 129 4.1) -1i3 55 1 .300 04) ;.t3 02 fJ47 98 56 i-o 16C,67 ?:-N.;00 (2,036331 1,321Y,10 2.61)(;UL, "?ti'?;c f7(:.78j 13314 635 LIUJ 6'_? 0.Gf1 ?5ti0 13Pi 75to 0(q) 1' 50 11.00 12 ;r OP.) I ill 00 11.00 151j.00 U.01! 750 00 712.Ui. 37.05 94 94 i>.Ui) ;.Ui; 3.190.80 5,_03.30 wl 85 4S 83 a 1,10 45.83. (l,vu 55u 00 U.00 -5n 01) o 00 12 503 to 1?) 17 5a li fit) 1.50 0(% 0 (li) I 0 f}f) , oil ;.5f1 6•':)C JtJfiL 0.00 31J,00 0.00 (t f10 3 000 (10 13.000 09) 0.00 0 UC. 1.6FI0.90 {3,f0(i (m). 0 DO alb h7 _-PC t.i (1.985 46) 5,1651 4;Ui,111,{i 5.178 95 (178 951 103,58 11500 -IS o.13 03 54131 384 10 1.5110{)(i } I2.3:l:1 371 S7 752i _, . 7C1 (I,t)(, 2.50 Q+J{i 3f1 ill; 11 ()tf ji)I,iii rl fJQ $ 33 0 rift .8 }3. {).Ur. 100 Oil t) tlt) 100.011 0 (if! I .(is-, 33 4.439.72 t3.35c1,39) 4139.S2 13.0OD 00 S. t 12.52 4J.*,'7 49 62 Al .11.0 U.04 41.61 rS r)p ;(I,, Or; 1) 0o �00 00 tl UO 1083 3 03 36 14.97 Sf, I8 I,3Ij;,l0 l 451.8(i 849 1.1 3:4 7A 141 0 )75-Ili 03:3:1 123:J 1,71);-,t)fi 1J42-firl 75::llrJ 5S.ei 41 67 0(10 .y1 (.7 000 00 r,fl I){iU 500.0 0On 116 6? 36(t -10 (.24,) 731 314 ot. 1.00 r)f, 695.8S 704. 4-1.7 ! 1.2 50 f l 00 6_ SO : ujj{' 7;4).tY.l U oU 750 (Al 0 01, 333 33 33i 25 0.9-1 1W) 5 4 (,fill Of) i, 2;, Sh =.47344 38.16 133.33 ?G 87 ;ii 4r., 57.65 i.tfl(!.fil" 552 77 1.04:7 _3 34.55 jfi 00 (100 'j11.1.17) fj,i), htrp.h 97 V5 MC 05 1r, l3 I r.,t,.67 it crl i 6i• t,7 U.011 2 ulru nt, 3;(, ()i) '1 RA.00 Ie• 1 0 00:J 1,9401;'J cl,att,.00 776SIO 3.Uf10.;.,;+ ^_404.05. 585,')= W 14 7.6_7 6? 1 S.547 41 {?.1sS9 :41 203,0?. ,1.S,'_.l;t, 45,3r;3.^_fi 6. 'S:72 3+1 3 524 5111, 10.11; i,2: {524 Stii IS;•: u:' 6 2Q5 r!it 2 6?2 7(1 2,67230 -11 66 S.77 :.1 J)1.2t' _,` I nn ; 1C 31 2.1118 6') '4S7 013 i+s, 4,13 Ov gGU l+"(;.OV i;I,vV: i10 4,v, ; i)fj t+.391 +jo 41 67 33542 33:_5 nI'• 1,9 :a. )0?S0441 1.676..23 2,34,9.75 41.65 12 of I G i,(i 0 CU 150 o(t 3000 If 133.00) 302.00 2U 13 U.0{i 2093 0.00 250 (10 U 00 250.00 o f.6 V333x 4.663.50 .[3.83017) 55962 1[f.(M)b1)0 0;83(00 113.Su 9..8.97 t, I?S'i1t1 u.W 125ku 0-0av 1,;twtmi O:f.W Si{$)fill) 0.00 66 61 tkfio 66 to 0 131.1 .stg! of) 0%fio fta.(li, (t (.i(r 5r10.101 5 al 1 r,8 FI.1 Cilyofam Uke GENTRAt rVNI) BUdi-OLOd SU,tt',ilent of Revenuts and Ocrcudiluro For [lie Five Months Fndi)ig May -it. 2013 j( :K-Nigtlti C llff.—Mg.(k ['urr_lt[)tll UJ S Ylj Y 1 D �!dSsd Agla-.1 V3rianr4 o,n Cum) e1z AlS1JM?1 Varianct "ru con _Iric !road Maintenance S[rns, Sign Rel,atr7t Medals I1,67 0.00 4.1,67 000 S00 hU b.ilo SUO.U(i OS ung,nrrring 1.000,00.. U.00 1000 U0 Q 01) I2 (+(}U {N: U Do Soul Iight5 ION3.3 R3.�2. 2511 16,92 1.?0{i()0 4g.1_65 'S.3S OW RM,-Anterlance $3.33 1 I0.OU (�G.6?) 1s�:oo 1,)JiuJuq {�s.�s, 1;�Js3; ['Js31 St[e.t Repairs 3s5833 0.00 2as33 QA(t ? ?U(} 0U (t O0 2.500.00 U W) Duus.R Suhsrr)ptuna .4.17 O GO >f. F7. o Oo 50.00 :9.58 14.42 10 16 lee Ind linos- iLemm•s r Nall :md ti.[n t 66 6:67 r[ i 660,67 11.01.1 SAIM) (it) i.95> 40 3,l41.61f 73.1r/ F:rpair5 K slam! • C'otNr icnml 83 33 O.i)0 9.333 U..4Ju I,CU() Or) n OU I (NHl;OtJ 0.00 sue , I'lo,tntg E�5(kSH1 U.(W rY5() Uri U till, 15.000 OU i -: X Z5 8,$01.25 lil.pb Ulher !•initnciag Uses Mal Expenditures 27.661.06 54,598.93[ (20937 s23) 191.39• 33i.93'.o[fj late,471 64 ISt3 it1U3b 45.03 Beess Rev O%cr UJndcr) Lisp (S 6;656.67) {S 51.676.21) 45.{iG9 i4 77514 (I xn:ullu.,,,,) 3"73153 }gl1.93 i,JIWC-.1: at t:+B PNI Clt'. A (r_n) t.:dx Redgrtrd .Stato)".114 at I iccuucc and E[�pendlttirzs I'or Ilse I ive \fomiec Endm I CiG�I1?lh QlarrwwA LUILIKIM11 XW Ii t'1t AVIV I Y3L' r : oo('otnnlctc Tsai 1 i1,! VarianrL `.;o.C'4nil?ISS4 uee :�tr s InterL%E mine S it?5 S GO(1 (5:1 ? (i.UO f 615.(* s I4li.7,i 466::7 21 19 rfAw Kevrmw.. SI 25 141.25) f1:00 615.nU 1.4 S.73 466.27 .2s IS 1•:\I'F:l*slpl'I'1?RI*S i'o10f i:e�cnditufcs U:UU 4.00 o,Ut; O 00 [1:DO COO U 1H1 0,00 INvas Rev fR-%.r jk r lal Ficp $ 51.,?5 S 6.00 {51.25i 6.00. 5 615..00 $ 14ft.73 466.27. 24 l8 6KO12015: M 1:49 R. ty of Gctr Like ,0.04 (IMIT SJ:Avid) ruN.i.) DuJ!•cYcdSta0.'rixr.� a): kcvcnua :i,;ti i;xtxndru:rcs. P:rr the Fjvt: klon[ i.s Fnding May.:,+1. 2015 Cirrr hlnih Orr Mntb S.4lMM?104 m YJ—D- �u� !� i'uritNO; auftl -ICttraf Varian °% RF,I. �Xi :ES C'tirreitt Spccial Assessincnrs $ 33i917 S. 0,U0 (].319537} {},00 3 ?x.b3Q00 t 013 2.7,930 06 0 brl 1Dtcrect Earnings t?,)_ O,Op (0.9'_1) 0 01). 1 ! tt(i (t'01.1 �! 2. fa_ IA i'ns) ney Ixnalf:c�eni;es 2;3'_il,(rS 11.Q0 [=..i,(I.t)t;) 1)+JU. �7,ti4i.fr1 (IS)I.i0) 27,9d:.10 I.El1G! J�SII E\UITURES 1.6tal l ipindiuttcs 0.00 0:00 [qf)E) PAX) 11.00 0.00 0(Y0 ..0KP F%;v'n's Rev.0%0r(11ivdr)Ex1) 5 ? 310:U$ S 00) E2.3'Cr.OR) O(0 S 27.W1 00 tS 1E11.10) 27:9.4210 (0.36) `$rrp12Q15 at 0" Ph! REVE\t'E5 Ctlrtanl Special Assessments lIawscst Egtoiiirs 'Tow !Wvenun [:SPI:XIJIT!.JUS C il% cf Gan I c;k,t Ilud;cicd Suuc{nc'it of Rcticnuc; snJ ffxPandmu,, Pin the I ive 0.lonihs PnJw A9a.• _ I , 'Gl Cu r.\.lntlf Ciar MIMI C r.;lliiu-, I) VI:1) pggu{ t Actual Vc! s _ l'•:,iui' ]c Dud-e Acid -al V.,inarice %q1!IOAC S. 1? 71417 S O:OU (1,27 1.7). O UU 5' I5,2901,20 $ 0.00 1?,396,00 o 0!, =1. rl_' [i,lirl (d 92) (IC ?'II)U br..Y3; (.7.83) 113.27 1,279AIN t7.W) 0.379 Ux) 6 ui 15.349:W 66:8-1. ls.292 i' 044 I mul f>.CI±CllliilruCY U i1(1 Pi.fp(i (1.111] 0f9l (1_0(1 0 W. Cl f10 tyf)3 ; Mcesc kc'v Over (Ur) ir1l:,.Ii $ .1 27+9.08 5 g.00 1127911Ki G00 S 15349W -S 66 83 1 ?S?:17 044 iw QOtSs++52pm }1};Vk•;tiEfI�:S Cuaunt.Pro pert%'.• :1scti Fiscal Disparitics intl-'ic5t F,ming9. TTcAal Rcvctrlrs C 1. of Gem Lake 2-17 DI: B r SERVICE Tv\' D 1twlgctcJ Stalemcm of Rocuu.s amt 1•:<� rnd t,i; r. For tLP rive „forolts I f'Jtntt P.faN ;i `i115 curr-mmft Cttry 4111t, kwLmolh Jd ct (151RI :N!,l ilp c. 4 (;t!h INc Bide' +,rtual 1,m_iance °A;@:oinjlete {.(3500. S 000 (.4.125 UU) 0O S 44).3wou. S. UAM 49:i0(i.uU il.►x► 4167 {f.Do (4 ) 67) 0.00 506.00. U. 011 . sm.o0 0 fg) 7425 r.t. liU 04 =S1 El.(Ml "1.00 i91 62 MIS 33:73 4.240.92 (P VJ (4.240:92t (i.(M1.. 5U.891.00' 291.6J $0.590.38 0.51 h'XFF\_s_ _�D17'E'i_ili4 Principal S.250(Ml (5.00 1.I?3000) OW 15105(K., 13,clo(1.(1(1. 0.00 100(tt) Intlrl'�t 3lv)ci2)5 0-00 (2.696,25) 0.00 31355(K) 1'632730 16,027.56 50.46 l fs.af Agot F4-s .4583 am ('13:83) 0 Pu 539.01) 550.01) O.t1U 1(9)00 Tuml Ftpcodituros 3.992.08 0.01. (3.992.09) u.(M? 47.:905 U.() 31.977'.SG. E6.A+7.50 1_xtek Rch'(lver(Under)'Gxp $ ?33:.&3 5 (.Ot) (20183) (.).00 S ?:SJ:th.00 IS 31*:SRS.RS1 34,571,88 (t,U57.80) .wtt31.Ci5 a; 1-53 PEA (,It\ of Gwill hA.t: EMPROVEMEN'l FUND flodectcd oj'Vc%ewjc,, ,wJ k6ondit&rtzs ro., the Fke Monfli, Eridw�; jlM\ 3 t. 2015 019 MlIth Qff—N.'IAb CLlrr MIE! —(iu Y-T—D II'llikelt V d Wlbifi:2 or!fm!MIWV Nuldz; I (dual Varmnc Imeresl I Irn in gq S. al 38 s oui 1171 58) obos zm, (h1 S 197.12 I.W.As Tolat Rmltucs 171,38 0 M, (171.5$) 0.00 -2,(*qvsj 497 32 1 ;56 1.68 24-:3 F."fintenag 5,066 oo 0 00 f3.06.6.1)) (J-011 00.00;" f,o 0 0 11) 60,(Y*.(Kp L*CLT,%[ 933.33. Olori (933.33) U,K I (;,f loo cfI 0 00 1 O.W0,00 0.00. Nottec: llruparatioll 41..67 o0o m o) O-OQ 56t).Q7. 0 ou w.bo Tinal Expcsidituscs SA?S%G(I 0.00 msnrxil fj.(Jo 1(1;50(;.()g 000 70.$00.00 O.W F.Xuos kv. ov!cr (I 1"Jai E.\ -S 5.70.3.12) S 0 W) 5.703 42 000 .(S 68,441 00) S 49732 (68.91 M& (013) 6w 1 W20 16 al 1 56 IM ('11 of Gene 1:ake SClil.:I..I.I NIAKROADIA1!'I?fiVl: li: Is BLIdg,ted Slak•mzrt o Rcre art; ar"J F\pandRuras I -Or' the 1"r:c t Jorrtfu Lrdmg..1a)• 3,1,,2015 Carr "Ontlt C nt Mmh On pjp..l.h 2015 }•FR. Y" l tJ$IS %i+CrS 1 Varrancc °�C'omnleti BiidgeS �ss0at Yes ` !41p!ssk imuc i Faminp (5 5 ()R) S 0.00 505 OW (5. 61.00) S 10:33 (71.33) f 16.931 EMaI R��cnu�s MAI ().01 3,(Fh o.r.iC (bl.tx7) 10-33 471.�N (16.43) Fx11E\DITrIREs Total I'XNI1ditltres tl•i}() 0.00 GAG (ko(.) U.00. 0,0o (1.Oi1 0 i71 E%Co5s Rev O..r.(LfnJer) F.xp S 3.031.S 0•U0 S.w 0.W bI.W) 5 10.33 (7E S3} {1f 431 t36fdtmijs at i 52 pot .('itl ufticiriI,0,_ I101 F',1,\N.itOA1) 1N111RrjVL-'':1FN 1S budgrlcd StaKnr,nt of RL!V"LIe, and Iafxndiuuc Fo. the Pitt P1,,aths 1]ld;vi: %I,iY.31.'-01 Qm Mnlb !:>dil n' i umtiJab rr,1 s M. m Vr+riancc 4%t'nm ]�i� Bu _t A is! Vi'� `k lca 1 metal .�... � � __t.u,.tl�� i.41!'al..1' IatetistEmlingx S 17:3 $.. 00007.33) oaj S _07.00' (S Tmil•Reveaues -- i7.?5 G.fiO (17:.'9) ODD 20709 131,87) '3R.S7 (15.491 FXI'FNDITl'RP•.5. UnLinccring 0 Al :14-IiA 41 34r«0fi.41 0:(f[) it $S A91 1).5 o �,991 05) +I tici I.c;al 0.00 {1.00' 0.011 O0(? Uik? 1;3.1p:00 (E.33+}cart C+(to 1clni+niskaliail (M 3109: 333.00 00(} 0:00. 31500 131-.t+0i CtUO Logal Not&•a Preparalam 00l '_3.20 21'0 00' o f)(1 33 :0 (35'0) n uo TaiolkX11ndswres 0.00 34.54661 W.S3OV UOO OOO. 57fM25 (57..661.35) 0f1 i7,uc5s Rot, Ova(1.4ndc7) FXP S: 17.35 (5-34."-46:6) fad 31ifi (N)Q.170 _4j.,S 207 00. ($ 57,693. 121 37.;960 12 0-7•g7k.07) biaa015or. SOPM Ct% of.Gew La c 51i�t'E:R FKTI_RPFlSF FE iVf ) iind'veied Statement of Rc%eui,.v anu r.pen iltrlcs For the Five t%101)05. 1 ]tdma !'clam 31. 'Oi 5 C1,�41nt1, Kitullimb QlI, Mmh .0.W* �� . - .i3llliLL'_[ f�� 1ai�a1li1. :i��'�1�--4-(S }�yu� �3"_..�I? CL`U7G.� T,-T,t�' °Ju L. C1111j111•f R1i�1•:�rt•:5 LUL:I: SAC .S U.UU S 1,(Jf;0.0U 1,0010-M) fi.OG s i}. CIO'S _Z Uoo.00 (2.000.0m 000 Nictro SAC 0.00 2,485.Q) .2,48$,00 0.00 U_10 ,g9.7fI.fK) (4,970,00) n.i3O Rcmdcl:11315oicrftet Infes iki-6.,67 2,U11 i)1 1,091.34 21938 11.6U000 ti8,(w:93 (7,U(f6.95) tC•370 rc:aIre%%cr11,,n niteS 2.583.33 0.00 (21,58333) 6-o") 3;,n000a 0.(1(I 31,00001 000 svwcr late Charge; 166.67 o.UO (.18(r 6?) p 00 2.000 W.) M82 I•,103-)8 44.94 liitcrest Larnlrles 1 15,25 (},(j() (4!15.25) 0:06 5 J33.60 1,49:!;57 4.450.43 25,11 Iota! Revenues 4161.92 •5•44601 l.3:a.09 132.05 49,941.06 27;366.34 22,576.66. 54.80 EXPE\DI.TIME CXfice Supplies Ilosv w A udi IMg 5Cr ti I, es Fngmsering Locate s Ffl�at:ii, I Scr.•iccs C'omputcr Scrnic,•s Rar,.,irs k kfwii� - Contractual 1)cpc ec t at um Sewn lcle iselllushtnfr lota1 E.yxnditures I:�ceu RPv (hrr (1Mdcr) hsp -1.67 O Oo (4 .67) (I.l1U 5(10 U() 0-UCi 5t10 011 fi 00 1667 if oo (1G 67) 0.00 21.10IN; 43.00 15^_ fhr 24 Or., 210 4- 0 00 (2111 O-U0 2 ;-); uU U t).U. 2.525A0 000 4.16 67 0.(-) (416 671 O s* s 01WI. 3! i o oo 510(rn (M 0.00 1.,7000 1.76300 i100 10010 �t..15600 11,27S.15 900.35 .53.30 f)+1c, 309 35 258 95 61770 600 rill 473 26 126.fi(i 78 87 37.5 00 0.01 137i 00) (106 4,500 (Mi 1.928.74 2,571 26 42 86: 4167 0OC% 01t'7) 0.f7U 500.0 0.00 50000 0UQ 333 13 ) C(l t333 331 0.0U 4.090.00 i1.tll1. 4,00 (M 0.0i 1,041.:+7 f (;() (1.0.11.67j. 0.00 3' <+iti.ft;i a Of) 12.i11(1 fi(I 0.06 66667 (r-00 (6(•0.011 1500 fS•fl;i0,oO { 0:). S.000(jO G6.1 4.95h 75 3.071.85 (2,984-M 41 80 59.4k1.u(`, 13.721S 051 l5 75.533.i 33.07 f$ 794 k3i,'8 3;424.16 46313.99 030X(t) (S 9.>38 00. 5 13,041.25. (23.179,25i . (143 021 ail 01201 S of 2'a0 PM Hoffman Corner CostS.To Date As of 5/31l1.5 Revenues 2613 2014 2015 Tatai Grants 0*00 Special 0.00. Other Payments 0.00 City Funds 600 Bond: Prbeeeds 0.00 Total Revenue; 0.00 ..00 om 0,00 0.00 Expenditures Engineering %735.27 Legal Finance-{WBT) Legal .Notices Fiscal -Fees Construction Other 18,526.04. 54,94.1.05 82,202.36 700.00 2,380.00 3,080.00 315.00 315.00 2100 25.20 0.00 0.00 0.00 Total Expenditures 8,73S.27 19;226.04 57,661.25 .0.00 85,622.56 Nef Costs (8,185.27) (19,226.04) (57,661.25) 0.00 l$5;=-Z 6j City of Gem Lake, MN NPDES Phase II Stormwater Permit Program J 2015 Annual Public Meeting Ron Leaf, PE SEH June 16, 2015 6/16/2015 1 NPDES Program Background Clean WaterAct: Established NPDES Permit z U.S. Environmental Protection Agency z Administered locally by MPCA ➢ City of Gem Lake: Phase II Small MS4 General Permit coverage ➢ Stormwater Pollution Prevention Plan (SWPPP) 6 Minimum Control Measures (MGM) Best Management Practices (BMPs) Measureable Goals NPDES National Pollutant Discharge Elimination System MS4 Municipal Separate Storm Sewer System Status of Compliance Operated under the 2006 permit and the 2013 permit for the 2014 Reporting Year. Permit requires annual review and self assessment of compliance b Reporting period January 1 to December 31 The City has met the requirements of the permit for the 2014 permit year 6/16/2015 K 2014 Program Highlights x% MCM 1: Public Education & Outreach 8: r MCM 2: Public Participation/Involvement r Articles in the City newsletter Stormwater Page on the City web site Hold Annual Public Meeting September 16, 2014 Council Meeting June in future years (tonight's meeting) Partnership with Vadnais Lake Area Watershed Management Organization and Ramsey -Washington -Metro Watersheds 2014 Highlights (cont.) MCM 3: Illicit Discharge, Detection & Elimination City storm water base map use for system inspections Completed required inspections. No illicit discharges discovered. MCM 4: Construction Site Stormwater Runoff Control Zero (0) construction sites > 1 acre in 2014 6/16/2015 3 2014 Highlights (cont.) A MCM 5: Post -Construction Stormwater Management 0 Projects/plans reviewed in 2014 0 New BMPs } MCM 6: Pollution Prevention & Good Housekeeping for Municipal Operations Inspections: —54 features inspected 5 of 5 outfalls (100% of total) No structural pollution control devices i= No ponds Some additional review and maintenance needed 6/16/2015 4 6/16/2015 Storm System Inspections 2014 Permit Updates The City obtained approval of its updated permit application on April 3, 2014 Status of updates is consistent with most MS4 cities o Standard Operating Procedures (SOPs) and Enforcement Response Procedures (ERPs) have been drafted r Review and update ordinances Illicit Discharge r Construction Site Provisions `>- Permanent BMP requirements Y Finalize written procedures, checklists and documentation standards o Inspections Development reviews d Staff training program Comments / Questions Direct comments to: �- Ron Leaf Y rleaf(a)-sehinc.com Y 651.765.2998 r Justin Gese ➢ jgese(a)sehinc.com Y 952.912.2612 6/16/2015 0 CITY OF GEM LAKE, MINNESOTA FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION. YEAR ENDED DECEMBER 31, 2014 CITY OF GEM LAKE 4200 OTTER LAKE ROAD GEM LAKE, MINNESOTA 55110 CITY OF GEM LAKE, MINNESOTA TABLE OF CONTENTS YEAR ENDE❑ DECEMBER 31, 2014 I. FINANCIAL SECTION INDEPENbENT AUDITORS' REPORT BASIC FINANCIAL STATEMENTS STATEMENT OF NET POSITION STATEMENT OF ACTIVITIES BALANCE SHEET -- GOVERNMENTAL FUNDS 1 4 5 6 RECONCILIATION OF THE GOVERNMENTAL. FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION —GOVERNMENTAL ACTIVITIES 8 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE W GOVERNMENTAL FUNDS 9. RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN.FUND BALANCE TO THE STATEMENT OF ACTIVITIES -- GOVERNMENTAL ACTIVITIES. 11 STATEMENT OF NET POSITION - PROPRIETARY FUND 12 STATEMENT ❑F REVENUES, EXPENSES AND CHANGE IN NET POSITION - PROPRIETARY FUND 13 STATEMENT OF CASH FLOWS - PROPRIETARY FUN❑ 14 NOTES TO BASIC FINANCIAL STATEMENTS 1.5, REQUIRE❑ SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE - BUDGET AN❑ ACTUAL - GENERAL FUND 30 NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 31 SUPPLEMENTARY INFORMATION NONMAJOR GOVERNMENTAL FUNDS. COMBINING BALANCE. SHEET 011 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUN❑ BALANCE 33 CITY OF GEM LAKE, MINN ESOTA TABLE OF CONTENTS (CONTINUED) YEAR ENDED ❑ECEMBER 31, 2Q14 II, 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 GOVERNENTAUDIT1NG STANDARDS 34 INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE 36 SCHEDULE OF FINDINGS AND RESPONSES 37 FINANCIAL SECTION CliflonLafsmAlleh LLP CLAconnect.com (� CliftonLarsonA[len INDEPENDENT AUDITORS' REPORT Honorable. Mayor Members of the City Council and Citizens City of Gem 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, 2014, and the related notes to the financial statements; which collectively comprise the. City's basic financial statements 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 the United. States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement; whether due. to fraud or error, Auditors' Responsibility Our responsibility 15 to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 perforrri the audit to obtain reasonable assurance about whether the.financial statements are free from material misstatement, An audit involves performing procedures to obtain audit evidence abort the amounts and disclosures in the financial .statements.. The procedures selected depend. on the auditors' judgment, including the assessment of the risks of maternal misstatement of the financial statements, whether .due to fraud or error: In making those. risk: assessments, the auditor considers internal control. relevant to the City's preparation and fair presentation 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. a eooft cr ire &rdNalaIrg dle.v (1) Honorable Mayor Members of the CityCouncil and Citizens City of Gem Lake Opinions In our opinion, the financial statements .referred to above present fairly, in all material respects, the financial position of the governmental acfivities, the business -type activities, each major fund; :and .the aggregate remaining fund information. :of the City of Gem ]wake, Minnesota as of-December-31, 2014, 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.United States of America. Report on Summarized Comparative Information We have previously audited the City of Gem Lake's 2013 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 1, 2014. In our opinion, the summarized. comparative information. -presented herein as of and for the year ended December 31, 20 3 is consistent, in all material 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., be presented. to supplement the .basic financial statements. Such information, although not a part of the basic financial statements, is required by the Govemmental:Accounting Standards Board who considers it to. be an essential part of -financial reporting for placing the basic financial statements in an appropriate operational,.ecdnomic, or historical context. We have applied certafn limited procedures to the required supplementary information in accordance. with auditing standards generally accepted in the United States of America, V40ich consisted of inquiries. of management about the methods of preparing the information and comparing. the information for consistency with management's responses to our inquiries, the basic financial statements, and other kndwledge we obtained during :our audit of the basic financial statements.. We do not.express�an opinion or provide -any assurance on the information because the limited procedures do not.provide us,with sufficient evidence to express an opinion or provide any assurance. Management has omitted the management's discussion and analysis that accounting principles - generally accepted in the United States. of America require to be presented to supplemprit the basic: financial statements. Such tiiissing 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 for placing the bas pfiinancial.statements in an appropriate operations, -economic, dr* historical context. Our opinion on the basic. financial statements is not affected by this Mlssiog information, Supplementary. Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the. City's basic financial -statements. The- accompanying combining non -major fund financial statements, as listed. in the table of contents, are presented for purposes. of additional analysis.and are not a required part of the basic financial statements. (2) Honorable Maybr Members of ih+3:City Council and Citizens City of Gem. Lake Other Matters (Continued) Supplementary Ynbrrhadon (Continued) The combining. rion-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 dudit of the .basic financial statements and certain additional procedures, including comparing -arid 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 geherally accepted in the United:.States of America...€n our opinionk the supplementary information is -fairly stated in all material respects. in relation to:the: basic fnancial statements taken as a whole. ether Reporting Required by Government Auditing Standards In accordance wM* -GdVomment Auditing Stanpfgri#-, we have also issued our report dated April 29, .201-5 on our consideration of the City of Gem Lake, Minnesota's internal control over financial reporting -arid 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 Zesting of internal control over financial reporting.and: compliance and the results.of that testing and not to provide an opinion on the in#err)al: oontrol over financial reporting .or on compliance. That.report is. an. integral part of an audit performed irl :accordance with. Government Auditing Standards and should -be considered in assessing. the results -of our audit. Gz�'�, CliftonLarsonAllen LLP Minneapolis, Minnesota April 29, 2015 0 BASIC FINANCIAL STATEMENTS CITY OF GEM LAKE, MINNESOTA STATEMENT OF NET POSITION. ❑ECEMBER 31, 2014 ASSETS Cash and Investments Taxes Receivable Special:Assessments Receivable Accounts Receivable Due from O#her. Governments Accrued Interest Prepaid Items Capital Assets: Capital Assets Being Depreciated. Accumulated Depreciation Total Assets LIABILITIES Vouchers and Accounts Payable Accrued Interest Payable Due to Other Governments Payroll Taxes and Withholdings Unearned Revenue: Long -Tenn Liabilities - Amounts Due Within One Year Amounts Due in More than On Year Total Liabilities NET POSITION Net Investment in Capital Assets Restricted for Debt Service Restricted for Park Improvements Unrestricted Total Net Position See accompanying !Votes to Basic Financial Statements- (4) Governmental Activities $ 572,282 17,176 73,180 6,577 958 3,933 931 1,627,915. -- (553,896) 1,751,056 22,866 13,606 3,586 7,400 15,000 738,793 8.01,251 Business -Type. Activities Total $ 380,464 $ 952,746 - 17,176 3;384 76,564 .20.1562 29,139 958 2,716 6,649 1,970 2, 9.01 6.17,539 2,245,454 (124,343) 678.239. 902,292 2,653,348 30 30. 22,866 13,606 3,616 7,400 15,00.0 738,793 801.,281 320,226 498,196. 813,4.22 170,831 - 170;831 39,125 - 39,1.25 419.623 .409,066 828,689 $ 049,805 $ 504262 $ 1,85..2,067 FUNCTIONSIPROGRAMS GOVERNMENTAL ACTIVITIES General Government Public Safety Public Works Conservation and Development Interest and Fiscal Charges Total Govemmerital Activities BUSINESS -TYPE ACTIVITIES Sevier Total PrimaryGovernment CITY OF GEM LAKE,. MINNESOTA STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2014 Expenses 5 129,294 109;9.73 142,578 53,892 33.718. 469,455 Net (Expense) Revenue and Program Revenues Changes in Net Position Y Fees. Charges,. Operating Capital Business - Fines. and Grants:and Grantgand Governmental Type Other Contributions Contn'bdtions' Activities Activities S 50,142 $ 6.737 S - $ (72 4151 $ 35,639 65,751 48.569 •48,592 6;733 0001206) (53.892) (33.718) 61737 6,733 (370,204) S 518,D14• 'S '135,363 S 6,737 $ 6,733 GENERAL REVENUES Taxes: Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Service Investment Earnings (Loss) Miscellaneous Total General Revenues CHANGE IN NET POSITION Net Position - Beginning of Year NET POSITION - END OF YEAR See sccompinyingr !Votes tq Basic Fin8nPa1'&atements, M Total S (72,415) (109.973) (100.206) (53;892). (33'7W .(370,204) 1.023 1.023 (170,204) :1,023 (365,161) 186.345 - 166r345 46,416 - 48,416 3.068 3,724 6.7.92 465 465 238,294 3,724 242,01ti (13.1,916) 4,747 (127,163) 1.091.716 897;515 11,979.230 S 949;905 $ 902,E $ 1,952,687 CITY OF GEM LAKE, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DEC EMBER, 31, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2013). ASSETS Cash and Investments. Taxes Receivable Special -Assessments Receivable Accounts Receivable Due from Other Governments Accrued Interest Receivable Due from Other Funds Prepaid Items Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Vouchers an,d.Accounts Payable Due to Other Governments .Unearned Revenue Due to.Other Funds Total .Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Resources FUND BALANCES Nonspe.ndable Restricted: Debt Service Park Improvements Street Projects Assigned: Capital Improvements Benefiting Individual Property Owners. .Unassigned. Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances See accompanying Notes to Basic. Financial Statements. (6) G,O; G.O. Improvement Improvement General Bonds Bonds Fund Series 2004A Series 2006A $ 297,419 $ - $ i6,158. 13,796 920. 33,393 37,356 83577 - _ 2,330 (374) 33 27,1.22 931 $ 352,053 $ 33,019. $ 53,547. $ 8,662 $ 3,586 7400 27.,122 - 1.9;.6.48 27,122 - 1 D.,728 3.1,835 3.5;997 931 - - - - 17,550 320,746 _ (25,.938) - 321.,677 {25,938) 17,550 $ 352,053 $ 33,019 $ 53,54.7 G.O. Capital. 2014 Improvement Hoffman street Other Total Plan Bonds Road Improvements Governmental Governmental 2Q13 Series 2007A Fund Fund Funds Funds Totals $ :83,334 $ 5,172 $ 129`,901 $ 40,298 $ 572,282 $ 585,989 31380 - - _ 17,176 181009 - - - 1,5.11 73,180 138,787 - - - - 81577 8,540 - - - - 958 814. 400 27 1;308 209 3,933 .8,486 - - - - 27,122 8.1.,096 - - - 931 941 $. 8.7,114 $ 5,199 $ 131,2.0.9. $ 42,018 $ 704,159 $, 8.42,662. $ - $ 14,204 $ - $ - $ 22,866 $ 18,9.06 - - - - 3,586 14,292 - - - - 71400 - - - - - 27.,122 81,096 - 14,204 - - 60,974 114,294 2,304 - - 80,864 138,223 - - - -. 931 941 84.,810 - - - 102,360. 87;570. - - - 39,125 39,125 38,779 - _ - 2,893 2,893 - - - 131,209 131,209 146,861 - (9,005) - - 285,803 31S,988 84,510 (9.005} 131,209 42,01.8. 562,321 590,145 $ 87,114 $ 5,199 $ 131,209 $ 42,018 $ 704,.159. 842,662 M CITY OF GEM LAKE, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES DECEMBER 31, 2014 TOTAL FUND BALANCES FOR GOVERNMENTAL FUNDS Total net position re..Ported for governmentalactivities in :the .statement of net position is. different because: Capital assets used in governmental activities: are not financial resources and, therefore, are not reported in the funds. These: capital assets consist .of: 5152.;321 Buildings $ 902,232 Office. Equipment 12,805 Infrastructure 71217S8 Accumulated Depreciation _ (553;896)1.,074,019 Some of the City's property taxes. and .special assessments will be collected after year=end, but are not available soon enough to pay for the current perio&s expenditures and, therefore, are reported as unavailable resources in the governmental funds. 80,864 Some liabilities are not due and payable in the current period and; therefore, are.not reported as fund liabilities. Balances.at year=end are, General Obligation Bonds. Payable (76p,000) Unamortized Bond. Discounts 6207 Accrued Interest on Long -Term Debt 13,606 (767,399 TOTAL NET POSITION OF GOVERNMENTAL ACTIVITIES 949,8.05 See accompanying Notes to Basic Financial Statements. (8) CITY OF GEM LAKE,.MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN. FUND BALANCE GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR. YEAR ENDED DECEMBER 31, 2013) G.O. G.Q. Improvement Improvement General Bonds Bonds Fund Series 2004A Series 2006A REVENUES Taxes s 186,063 $ - :$ - Special Assessments - 30,704 15,030 Intergovernmental 3,393 - Licenses and Permits 57,674.: - -. Fines and Forfeits 3,048 - Public Charges for Services 7,616 - Miscellaneous:. Earnings (Los.$).on Investments 2,877 (1,234) (626) Other 21,252 - - Total Revenues 281,923 .29;470 14,404 EXPENDITURES Current: General Government. 10.7,590 Public. Safety 109,973 - - Public Works 79,801 Conservation and Development 50,892 _ - Capital Outfay _ _ Debt Service., Principal Interest'and Fiscal Charges Total -Expenditures. 348,256 - - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (66,333) 29,4.70 14.,404 Fund Balances.- Beginning of Year 388,010 (55;408) 3,146 FUND BALANCES -. END OF YEAR $ 321,67.7 $ (25,938J $ 17;550 See accompanying Notes to Basic Financial Statements. (0) G.O. Capital 2014 Improvement Hoffman Street Other Total Plan Bonds Road Improvements Governmental Governmental 201.3 Series 2007A Fund Fund Funds Funds Totals $ 48,416 $ $ - $ - $ 234,4.70 $ 266,083 - - - 10-640 64,374 113,990 - - - - 3139.3. 3,250 - - - - 57;674 71,595 - - - 31048 4,903 - - - - 7,616 4,936 475 (22.5) 1.,529 .272 3,06$ (1,432) - - - 21.,252 21,519 48,891 (225) 1A29 18,912 394,904 484,844 - - - - 1.07,600 93;282 - - - 109073 115,034 - - - - 79,001 77,458 - - - - 5.0,892 24;437 - 2.5,967 - - 25,967 10,639 15,000 -. - - 15,000 379,923 33,505 - - - 33,505 48,985 48,605 25.967 - 422,728. 749,758 386. (26,192) 1,529 1.8,912 (2-7,824) (264,914) 84,424. 17,187 129,680 23,106 590,145 855,059 $ 84,810 $ _ (9,005) $ 131.209 $ 42,018 $ 562,321 $ 590,145 (10) 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 ACTIVI TIES YEAR ENDED DECEMBER.31, 2014 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ (27,824j Arnourits reported for governmental activities in the statement of activities are different because:. Governmental funds report capital outlays as expenditures:. However, in the statement of activities, assets are capitalized.and the cost is allocated. over their estimated useful lives. and reported as depreciation expense.. Capital Outlays $ 662 Depreciation Expense .(62,176} (61,514) Delinquent and deferred .property taxes and special assessrnents receivable will be.:collected subsequent to year-end; but. are not available soon enough to pay for the current period's expenditures and, therefore, are. unavailable: resources in the govern.rrtental.funds. Unavailable Resources - December 31, 2013 1.38.,223 ` Unavailable Resources - December 31, 2014 80,864 (57,359). The governmental funds report bond proceeds as. finahcing sources, while repayment: of bond principal is'.reported as an expenditure. In the statement of net position, however, issuing debt increases long-term liabilities and does not affect the statement of activities and repayment of principal reduces the liability. Also., governmental funds report -the. effect premiums and discounts when debt is first issued, whereas these amounts aredeferred and amortized in. the statement of activities. Interest is recognized as.an expenditure in the governmental funds when it is due: in the statement of activities, however, interest expense is .recognized as`it.accrues, regardless.of when it is due. The. net effect of these differences in the treatment of general obligation bonds and related items is as. follows: Repayment of Bond Principal Change- in.Accrued Interest. Payable Amortization of Bond ❑iscount CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES .see accompanying (Votes. to Basic Financial Statements: 0 1) 15,000 250 (463) 14,787 $ (131,910} CITY OF GEM LAKE, MINNESCTA STATEMENT OF NET POSITION PROPRIETARY FUND DECEMBER 31, 2014 ASSETS Cash and Cash Equivalents Customer Accounts Receivable Accrued Interest RecelV2ble Special Assessments Receivable Prepaid Items Total. Current Assets Capital Assets: Utility Plant in Service Accumulated. Depreciation Net Capital Assets Total Assets. L1AmLITIES Due to Other Governments Total Liabilities NET POSITION Net Investment in Capital Assets Unrestricted Total Net. Position See accompanying Notes to Basic Financial Statements. (12) Sewer Utility $ 380,464 20,56.2 V16 3,384 1,970 409,098 617,539 (124,343). 493,196 942,292 30 30 498,196 409,066. 902,262 CITY OF GEM LAKE, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGE IN NET POSITION PROPRIETARY FUND YEAR ENDE❑ DECEMBER 31, 2014 OPERATING REVENUES Public Charges for:Services OPERATING EXPENSES Operating Expenses Depreciation Total Operating Expenses. ❑PERATING INCOME NONOPERATING REVENUES Interest Revenue CHANGE IN NET POSITION Net Position - Beginning of Year. NET POSITION END OF YEAR See accompanying Notes to Basic Fihancia) Statements. (13) Sewer Utility $ 49.582 36,103 12,456 48,559 1,023 3,724 4,747 897,515 $ 902,262 CITY OF GEM LAKE, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUND YEAR ENDED DECEMBER 31, 2014 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Utility Customers Cash Payments to Suppliers for Goods and Services Net Cash Provided by Operating Activities CASHFLOWS FROM INVESTING ACTIVITIES Interest on Investments NET INCREASE IN CASH AND CASH EQUIVALENTS Casty and Cash Equivalents - Beginning of Year CASH AND CASH EQUIVALENTS - EN❑ OF YEAR RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income Adjustments to Reconcile: Operating I ncome: to Net Cash Provided by Operating.Activities, Depreciation Changes in Assets and Liabilities! Accounts Receivable Due. from Other Governments Special Assessments Receivable Prepaid Items Accounts Payable Due to Other Governments. Net Cash. Provided by Operating Activities See accompanying Notes to. Basic Financial Statements. ( 14) Sewer utility $ 50;330 (46,771) 3.,559 5,833 0,392 371, 072 $ 380,464 $ 1,023 12,456 (2,046) 737 2,057 (152) (4) (10.512.) $ 3;559 CITY OF GEM LAKE, MINNE80TA NOTES TO BASIC FINANCIAL. STATEMENTS ❑ECEMBER 31, 20,14 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 As. required. by U.S, generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Gem Lake and its component units. A component unit is a. legally separate entity for which. the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component include whether or not. the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the .potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. Based on these criteria, there are no organizations considered to be component units of the City. B. Basic Financial Statements 'I. Government -Wide Statements The government -wide financial. 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 internal activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities; which rely to a significant extent on fees arid charges to external parties for .support. 15) CITY OF GEM LANCE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS ❑ECEMBER 31, 2014 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED.) B. Basic Financial Statements (Continued) 1. Government -Wide Statements .(Continued) In the government -wide statement of net position, both the governmental and business -type activities columns; (a) are presented on a consolidated basis by column; and (b) are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long=term debt and obligations.. The City's net position is reported in three parts: (1) net investment in capital assets; (2) restricted net position; and (3) unrestricted net position, The City first utilizes restricted resources to finance qualifying 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. Direct expenses are those that are clearly identifiable. with a specific function or activity. Program revenues include: (1) fees, fines; and charges paid .by the recipients of goods, services, or privileges. provided. by a liven function or activity; .and (2) grants and contributions that are restricted to meeting the .operation.al or capital requirements of a particular function or activity, Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 2. Fund Financial Statements The fund financial statements provide information about the City's funds. Separate statements for each fund category, governmental and proprietary, are presented.. The emphasis. of governmental and proprietary fund financiai statements is on major individual governmental and enterprise funds, with each` displayed as separate. columns in the fund financial statements. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. (16) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 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 general government, except those required. to be accounted for in another fund. G.O. Improvement Bonds Series 2004A. — The G.Q. Improvement. Bonds Series 2004A Fund accounts for all debt service activity related to the 2004A bond. G:O. Improvement Bonds Series 200.6A — The G.Q. Improvement Bands Series 2006A Fund accourits.for all debt. service activity related to the 2006A bond. G.O. Capital improvements Plan Bonds Series 2007A The G.O. Capital Improvement Plan Bonds Series 2007A Fund accounts for all debt service. activity related to the 2007A bond, Hoffman Road Fund — The Hoffman Road Construction Fund accounts for all activity related to the reconstruction activities of Hoffman Road. Street Improvements Fund — The Street Improvements Fund is used to account for the accumulation of resources that are: restricted, committed,. or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities. The City reports the following major proprietary fund: Sewer Fund — The sewer fund accounts for customer sewer service charges that are used to finance sewer operating expenses: C. Measurement Focus and Basis of Accounting The government -wide and. proprietary fund financial statements are reported. using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded when a liability is :incurred., regardless of the timing of related cash. flows. Property taxes are recognized as revenues in the year for which they are levied.. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED.) C. Measurement Focus and. Basis of Accounting (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as:. they are both. measurable and available. The City considers all revenues: to be available if they are collected within. 60 days after the end of the current period. Property and other taxes,. licenses, and interest are all considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred., except for principal and interest. on. general long -terra debt, compensated absences, and claims and judgments, which are recognized as expenditures to the extent that they .have matured. Proceeds of general. long-term debt and acquisitions under capital leases are reported as other financing sources. Proprietary funds distinguish operating. revenues and expenses from nonoperating items. Operating. revenues and expenses generally result from providing services and. producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the City's enterprise funds are. charges to customers for sales .and services. Operating expenses for enterprise funds include the cost. of sales and. services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are 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 1nvestments authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of. an advance from another fund shown as interfund receivables in: the advancing fund in the governmental fund financial statements, and an interfund payable in the fund: with the deficit, until adequate resources are. received. These inter fund payables are eliminated for statement of net position presentation. CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 (VOTE 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Cash and Investments (Continued) Investments are stated at fair value as of the balance sheet date. Interest earnings. are accrued at the balance sheet date. For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments with a maturity of three months or less when purchased. to be cash equivalents. All of the cash and investments allocated to the proprietary fund types have original maturities of 90 days or less; Therefore, the entire balance in such fund types is considered cash. equivalents. F. Prepaid 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. 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 collection in the following year. The County is responsible far billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the Cityat. that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are. payable by taxpayers on February.28 and June 30 of each year. These taxes are collected. by the; County and remitted to the City on or before July 15 and December 15:of the.same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. (19) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC. FINANCIAL STATEMENTS DECEMBER 31, 2014 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Property Tax Revenue Recognition (Continued) Within the governmental fund. financial statements, the City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current. period, In practice, current and delinquent taxes and State credits received by the. City in July, December and the following January are recognized as revenue for the current year. Taxes and credits not received at the year-end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred. inflows of resources because it is not available to finance current expenditures. Deferred inflows of resources in governmental activities is susceptible to full accrual on the government -wide statements. The City's property tax revenue includes payments from the. Metropolitan Revenue Distribution (Fiscal Disparities Formula) per Minnesota Statute 473F: This statute provides a means of spreading a portion of the taxable valuation of commerciallindustrial 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. 20.14 totaled $3,411. Receipt of property taxes from this "fiscal disparities.pool" does not increase or decrease total tax revenue. 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 dandled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Within the fund financial statements, the revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the. City are recognized. as revenue for the current year, Special assessments are collected by the County and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year.. All remaining delinquent, deferred and special deferred assessments receivable in governmental funding are completely offset by deferred inflows of resources. Deferred inflows of resources in governmental activities is susceptible .to full accrual on the government -wide statements. (20) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Special Assessment Revenue. Recognition (Continued) Once a special assessment. roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the .City's City Council or court action. If special assessments are allowed to; go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs; penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the. full amount of its special assessments not adjusted by the. City's City Council or.court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale%after three years unless.it is homesteaded, agricultural or seasonal recreational .land in which event. the property is subject to such sale after five years. J. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets .(e.g.,. roads., sidewalks, street lights, and similar items) are reported. in the applicable governmental or business -type activities columns in the government wide financial statements. Capital assets. are recorded at historical cost or estimated historical cost if :purchased or constructed. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset. lives are not capitalized. Major outlays for capital assets and improvements are capitalized. as projects are constructed. The government reports infrastructure assets on a network and subsystem basis. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the City chose to include all such items regardless of their acquisition date or amouht. 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, no salvage value is taken into consideration for depreciation purposes. Capital assets. not tieing depreciated include construction in progress. Depreciation Estimated Assets Method Useful Life Buildings: Straight -Line Office Equipment Straight -Line Utility Systems Straight=Line Infrastructure Straight -Line (21) 40 Years 5 -10 Years 20 - 50 Years 20 - 50 Years CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 NOTE 1 SUMMARY' OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Long -Term Obligations In the. enfity-wide financial statements; longterm debt and other long-term obligations are reported as liabilities in. the applicable. govern mental activities. Bond premiums and discounts are deferred and amortized over the fife of the bonds using the straight-line method. Bond.issue Costs, are expnesed as a Current period Cost with the adoption of Governmental Accounting, Standards Board Statement No..65. In the. governmental fund financial. statements, bond premiums and discounts, as well as. bond. issue costs are recognized during the current period.. The face amount of the debt issue is. reported. as on other financing source. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issue costs are reported as debt service expenditures.. L. Net Position/Fund 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 limitations imposed. on their use through external restrictions imposed by creditors; grantors, or laws or regulations of other governments. In they fund financial statements, governmental funds report fund balances in the. classifications that disclose constraints for which amounts in those funds can be.. spent.. These classifications are as follows: Nonspendable --portion of fund balances related to prepaid items, inventories,. long- term receivables, and corpus on any permanent fund:. Restricted _ funds are constrained from outside parties {statute,. grantors, bond agreements, etc.). Committed — funds are established and:modified by a resolution approved by the. City Council. Assigned — consists of internally imposed constraints approved by the City Finance Director. Unassigned — is the residual classification for the General Fund and :also reflects the negative residual amounts in other funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available; it is the City'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. (22) CITY OF GEM LAKE,.MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (.CONTINUED) M. Interfund Transactions €nterfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute: reimbursements to a fund for expenditures/ expenses initially made from it that are properly applicable to another fund,. are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is. reimbursed, All other interfund transactions are reported as transfers. All interfund transactions are eliminated except for activity between governmental activities and business -type activities for presentation in the entity -wide statements of net position. and statements of activities. NOTE 2 DEPOSITS AND.INVESTMENTS A. Deposits The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed ❑n the statement of net position and the balance sheet as "Cash and In. vestments." In accordance with Minnesota Statutes, the City maintains deposits at financia[ institutions which are authorized. by the City Council. Custodial Credit Risk --= Custodial credit risk for deposits iS the risk that in the event of a bank failure, the City's deposits may not be returned. to it. The City does not have a deposit policy for custodial credit risk and follows Minnesota Statutes for deposits. Minnesota Statutes require that all .deposits be protected by insurance, surety bond, or collateral.. The market value of collateral pledged must equal 110% of the deposits not covered by insurance. or corporate surety bonds. Authorized collateral include: U.S. government treasury bills, notes; or bonds.; issues of a U.S.. government agency; general obligations of a state or local government rated "A" or better; revenue obligations` of a state or local government rated. "AK or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and. time deposits insured by a federal agency. Minnesota Statutes require securities pledged as collateral be field in safekeeping in a restricted. account at the. Federal Reserve Bank or in an account at a trust department. of a commercial bank' or other financial institution not owned or controlled by the depository. At December 31, 201.4, the carrying amountof the City's deposits were $252,141.. Of these deposits $2,141 were not insured or collateralized. CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 10114 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. • S.hares of investment companies registered under the Federal Investment Company Act of 19.40 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 obligations rated'AX or better.. • General. obligations of the Minnesota Housing Finance Agency rate "A" or better, • Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. • Commercial paper issued by United States banks corporations or their Canadian subsidiaries., of highest quality category by a least two nationally recognized rating agencies, and maturing in 27Q days or less. • Guaranteed investment contracts guaranteed by United States commercial banks or domestic branches of foreign banks or United. States insurance companies if similar debt obligations of the issuer or the collateral pledged by the issuer is in the top two rating categories. • Repurchase or reverse purchase agreement and securities lending agreements financial institutions qualified as a "depositoryby the government entity; with banks that are members of the Federal Reserve System with. capitalization exceeding $10,004,000, a primary reporting dealer in U.S.. government securities to the Federal Reserve Bank of New York; or certain Minnesota. securities broker -dealers. • Any security which is an obligation 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 (ii) enrolled in athe cedit enhancement program pursuant. to Minnesota Statute §126C.55 Custodial Credit Risk For an investment; custodial credit risk is the risk that, in the event of failure of.the counterparty, the City will not.be able to recover the value. of its investment or collateral securities that are in the possession of an. outside party. The City's investment policy doesn't specifically address custodial credit risk. (24) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 NOTE 2 DEPOSITS AND .INVESTMENTS (CONTINUED) B. Investments (Continued) Interest Rate Risk lnterest 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 market interest. rate risk fluctuations is provided by the fallowing table that shows the distribution of the City's investments by maturity..: 12 Months 1.3 to 24 25 to 60 More than Type Total or Less Months Months 60 Months Build America Bonds - Shoreview 5 150,224 $ - 3 - $. 5 150,22.4 Negotiable Certificates of Deposit 385,726 246.16D 100,117 40,450 Wells Fargo Prime Investment. Fund 180,622 180,622 - - - Total S 717,571 5 160,622 S 246,16D $ 100,117 5 190.573 Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating, organization. The City's investment policy doesn't specifically address credit risk. The following chart summarizes year-end ratings for the City's investments as rated by. Moody's investors Services: Tvr)e: Government Money Market Mutual Funds Buifd America Bonds - Shoreview Negotiable..Certificates of Deposit: GE Capital Bank CD Goldman Sachs Bank CD Total Negotiable Certificates of Depos►ts Total NR w Not Rated (25) Credit Quality Rating Amount NR� $ 180,622 AAA 150.224 NR.. 246,160 NR 140,666 386;726. $ 717,571 CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 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: Type Amount _ Percentage Build America Bonds - Shoreview $ 150,224 20.94.% Negotiable Certificates of Deposit GE Capital Bank CD 246.,160 34,3o% Goldman Sachs Bank CI] 140,566 19.59% NOTE 3 CAPITAL ASSETS Capital asset activity for the.year ended December 31, 2014 was as follows: Governmental Activities Capital Assets Being. Depreciated Buildings 0 fface. Equipment Infrastructure Total Capital Assets Being Depreciated Accumulated Depreciation: Buildings. Office Equipment Infrastructure Total Accumulated Depreciation Net Capital.Assets - Capital Activities Beginning Ending Balance Increases Decreases Balance $ 902,232 5 $ - S 902,232 13,190 662 (957) 12,695 712,788 - - 712,786 1,628,210 662 {957} 1,627,915. (132,086) (VA97). (154,583) (8,469) (1, 242) 957 (01744) (352,132). (3%437) (492,677) (62,176). 957 (553,896) S 1,135,533 $. (61,514). .$ $ 1,074,019 Depreciation expense was charged to the. governmental functions as follows: General Government $ 2.3,730 Public. Works 38;43.7 Total. Depreciation - Governmental Activities 62,176.. Beginning Eridirig Balance: Increases Decreases Balance Sewer Utility Capital.Assets Being Depreciated: Infrastructure $ 817,539 $ $ $.. 617.,539 Less: Accumulated Depreciation (1111.887) (12,456) (1.24,343) Net Capital Assets - Sewer Utility $: 505.652 S (12,45-6). $ - 5 493,196 (26) NOTE 4 CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 CITY INDEBTEDNESS City indebtedness at December 31, 2014. is composed of the following: Final issue Maturity Interest Original Balance Date Date Rate Issue 12/31/14 Governmental Activities: General D.bligation.Bonds: 20 7A capital Improyernent Bonds 05/20/2007 02/0.112028 4.00-4.50% $ 650,600 $ 760;000 Unamortized Bond Discount (25,111 } (6.207.) Total $ 824.889 $ 753,793 The following it a schedule of changes in City indebtedness for the year ended December 31, 20'14.:. Balance: Balance Due Within. 4V31113 Additions Reductions 121.31/14 One Year Long -Term Debt GovernmantaI Activities" General Obligation Bonds $ 775;000 - $ 15,000 $ 760.,000 $ 15,000 Unamortized Bond Discount (6,670) - (463) (6;207) Total Long -Term Debt 5 768,330 $ 14,537 S 753,793 S 15.000 .All long-term bonded indebtedness outstanding at December 31, 201.4 is backed by the full faith and. credit of the City, including special assessment bond issues. For the governmental activities, compensated absences are generally liquidated by the general fund. During the year ended December 31, 201.3,..the City called.the outstanding portions of the Series 2004A and 2006A. General Qbligation. Improvement Bonds; by using existing fund balance. Minimum annual principal and interest payments required to retire long-term debt are as follows: Year Ending December 31, Principal Interest Total 2015 $ 15,000 $ 32,355 $ 47,35.5. 2016 1.6100.0 3.1,755 46,755 2017 .50,000 30.;430 80,430 2018 50,00.0 28,380 78,380 2019. 55,000 26,214 81,21.4 2020-2024 295,000 95,206 390,206 .20.25-2028 280,000 25,738 305,738 Total $ 760,000 $ 270,0718 $ 1,030,078 (27) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 NOTE 4 CITY INDEBTEDNESS (CONTINUED) Description and Restrictions of Lon -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. NOTE 5 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY NOTE 6 Deficit Fund. Balances The City has deficit fund. balances at. December 31, 2014 as follows: Fund Balance Deficit GO Improvement Bonds Series 2004A $ 25,938 Hoffman Road Fund 9.005 The City intends to fund these deficits. through future tax levies, transfers. from other funds, and various other sources. Excess of Expenditures Over Budget As of December 31, 2D14, the General Fund had expenditures in excess of its appropriations of $316,133 by $32,123.. These expenditures in excess of appropriations were funded by greater than anticipated revenues, INTERFUND BALANCES AND ACTIVITIES Due To/From Other Funds Individual fund receivable and payable balances at December 31, 2014 are as follows: Governmental Activity.; General Fund GO Improvement. Bonds 2004A Interfund Receivable $ 27,122 $ 27,122 Interfund Payable. 27.122 $ 27,122 Interfund receivable and payable. balances represent the elimination of negative cash between funds. (2s) CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014. NOTE 7 RISK MANAGEMENT The. City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City carries commercial insurance for all risks of 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 December 31, 2014, are as follows: A. Restricted for Debt. Service. — This represents 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. improvements. C. Restricted for Street Projects -- Represents amounts which are received from special assessments and are restricted for street projects.. D. Assigned for .Capital improvements Benefitting Individual Property Owners. — Represents amounts which are assigned by the City to finance future road improvement projects benefitting. individual property owners, NOTE 9 SUBSEQUENT EVENT In April 2015, the City has approved the sale of $775,000 in General Obligation Refunding Bonds. Series 2015A to refunding the outstanding portions: of the 200.7A General Obligation Capital Improvement Bonds with .maturities of February 1; 2016 acid after. This `refunding will result in a .decrease in total debt service payments of $68,303 with a net: present value of $60,393. over the remaining life of 111e bonds. (29) REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON INFORMATION CITY OF GEM LAKE, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE. BUDGET AND. ACTUAL GENERALFUN❑ YEAR ENDED DECEMBER 31, 2014 _ Budgeted Amounts Actual Variance with _ Original Final Amounts. Final Budget REVENUES Taxes $ 1.80119 $ 180;119 $ 186,063 $ 5,944 Intergovernmental 3,642 31.642 3;393 (249) Licenses and Permits. .21,375. 21,375 57.,6.74 36.299. Fines and. Forfeits.. 2,000 2,000 3,048. 1,048 Public Charges for Services 4,300 41300 7,616 Miscellaneous: Interest 4,365 4,365 2,877 Other 1.6,215 16,215 21,252 Sj037 Total Revenues 232,016 232,016 281,923 49,907 EXPENDITURES General Government 121,36.1 1.21,861 107;590 13,771 Public. Safety 103;792 103,:792 109,973 (6,181) Public Works 49,850 49;850 79,8.01 (29,951} conservation. and Development 41,1.30 . 41,130 50,892 9,762 Total Expenditures 316,133 3.16,133. 3481256 _ (32,123.) NET CHANGE. IN FUND. BALANCE $ (84,117) $ (84;117) (66,333) $ 17.784 Fund Balance - Beginning of Year 388,01.0 FUND BALANCE - END OF YEAR $ 321,677 See. accompanying Note to Required Supplementary Information. {30) CITY OF GEM LAKE, MINNESOTA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER.3.1, 2014 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY - BUDGET The General Fund budget is legally adopted on a basis consistent. with U.S. generally accepted accounting principles. Actual expenditures exceed. budgets during 2014 by $32,123. These over expenditures were funded by greater than anticipated revenues. �31) SUPPLEMENTARY INFORMATION CITY OF GEM LAKE, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS ❑ECEMBER:31, 20,14 ►M.-i=11 V Cash and Investments Special As..sessments. Receivable. Accrued Interest Receivable Total Assets LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable FUND BALANCES Restricted: Park Improvements Street Projects Total Fund Balances Total Liabilities and Fund Balances Capital Projects. Parks:and Scheuneman Total Playground Road Nonmajo.r Fund Fund Funds $. 38,848 $ 1,450 $. 40,29.8 1,511 1,511 2.77 68 209 $ 39,125. $ 2; 893 $ 42,018 39,125 - 39.,125 .2,893 .2,893 39,125 .2,893 42,018 $ 39,125 $ 2893 $ 42,018 (32) CITY OF GEM LAKE, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES ' AND CHANGE IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2014 _ Capita! Projects: Parks and Scneuneman Total Playground Road Nonmajor Fund Fund Funds REVENUES Special Assessments $ - $ 18,640 $ 18,640 Earnings (Loss) on investments 346 74 272 Total Revenues 346 18,566 18,912 EXPENDITURES Capital Outlay _ NET CHANGE IN FUND BALANCES 346 18,566 18,912 Fund Balance - Beginning of Year 38,779 (15,673) 23,106 FUND BALANCE - END OF YEAR $ 39,125 $ 21893 $ 42,01.$ (53) OTHER REQUIRED REPORTS I r Q-1 'fflonLarsonAilen. LLP CLAconnectwm C[iftonLarsonMlen 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 GOVERNMENT AUDITING 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 Government Auditing Standards, issued by the Comptroller General. of the United. States, the 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, 2014, and the related notes to the financial statements, which collectively comprise City of Gem Lake's basic financial statements,. and have issued our report thereon dated April 29, 2015. Internal 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 circumstances for the purpose of expressing our opinions on the financial statements, but. not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not.express an opinion on the effectiveness of the City's internal.controi, Our consideration of internal control was for 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 arid, therefore, material weaknesses or significant deficiencies may exist that were_ not identified. However; as described. in the accompanying Schedule of Findings and Responses; we. identified a deficiency in internal control that we consider to be a material weakness. A deficiency in internal control exists wren the designor operation of a control. does not allow management or employees, in the normal course of.performing their assigned functions, to prevent; or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a. reasonable possibility that a rhaterial misstatement of the City's financial statements will not be. prevented, or detected and corrected on a timely basis, We consider the deficiency finding number 2013-001 described in the accompanying Schedule of Findings and Responses to be a material weakness, ■ An r6epaverc rurHruxeaa lnr<n rna^ � Q[r V TEA NAT3 4:U1 . Honorable Mayor and Members of the City Council City of Gem Lake Compliance and Other Matters As pate 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 -affect on the determination of financial statement amounts. However, providing an opinion on. compliance with those provisions was not an objeWVe of our audit and, accordingly, We do not express. such an opirlioq. The results of our tests disclosed no instances of noncompliance or other matters. that are requirod to be -reported under Government Auditing Standards. City of Gem Lakgf1s.Respor s.0_.fo the Finding The City's response to the finding 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 omit.. 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 to provide- an opinion on the effectiveness of the City's internal control. or on compliance, This report is an .integral part of on audit performed in accordance with Governrnetit .Auditing Standards in considering the: City's internal control and compliance. Accordingly, this conrimunication is not suitable for any other purpose. zz_>Z�, CliftonLarsonAllen LLP Minneapolis, Minnesota April 29., 2015 (36) I CliftonLarsonAllen LLP CL4wnnect,cani Clifton LarsonAllen INDEPENDENT AUDITORS' REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor, Members Of -the. City Cour>cll, and Citizens City:of Gem Lake,*Minnesota We have audited, in accordance with the auditing standards generally accepted in the Uhited States of America and the standards applicable *tb financial audits contained in GovernmenUAudlfing Standards issued by the Comptroller General of the. United States; the financial statements of the governmental activities, the business -type activities, each major -fund, and the.aggregate remaining fund information of the `City of Gem Lake, as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise. -the Clty's basicfirianoiai statements, and have issued. our report thereon dated April 29, 2015.: The Minnesota Legal Compliance Audit Guide for Political Subdivisions promulgated by the State Auditor pursuant .to Minn. Stat. §6.65, contains seven categories. of compliance: to be tested: contracting and bidding, deposits.and investments, conflicts of interest, public indebtedness,. claims and disbursements, miscellaneous provisions, and tax increment financing. Our audit considered all of the listed categories, except that we did riot test for compliance with tax �inctement fnaricirig because the City did not have any tax increment financing. Ift cohnection with our audit, nothing .came to our attention that caused us to believe that the City of Gem Lake, failed to comply with the. provisions of the Minnesota Legal .Compliance Audit Guide fdr Political Subdivisions, except as despribeid in the Schedule of Findings and Recommendations as items 2014-0.02.and 2014-003. However, .ouraudit was not directed primarily toward obtaining knowledge of such noncompliance.. Accordingly, had W6 performed additional procedures, other matters may have come to out attention regarding the City of Gem Lake's noncompliance with the above -referenced provisions: The purpose of #his report is solely:to. describe the scope of our testing of compliance and the:r,". ults of that testing, and not to provide: an opinion on compliance. Accordingly, this communication is 'not suitableforany other purpose. CliftonLarsonAllen LLP Minneapolis; Minnesota April- 29, 2015 Y rowt ,�� , M ., -a a ng�� (36) i P'A'N NAL 1 CITY OF GEM LAKE SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED ❑ECEMBER 31,.2014 MATERIAL WEAKNESS 2014-001: 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 srrialI entities, we are required to .report this issue and to advise that a concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal control perspective. Criteria: Generally, a system of internal control contemplates. separation of duties such that no individual has responsibility to execute a transaction, have .physical access to the related assets, and have responsibility or authority to record. the transaction: Effect: The City is unable to maintain segregation of incompatible duties. Cause: The condition is due to a limited number of personnel involved in receipt and disbursement processes. Recommendation: Controls should be reviewed periodically and consideration given to improving the segregation of duties. In making this review, it is important to consider the benefit derived as weighed against the cost of the improvements. Management Response: Management has decided, due to the small size of the City's staff, that the additional costs of implementing the necessary controls outweigh the benefits that would be derived. (37) CITY OF GEM LAKE SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED) YEAR ENDED DECEMBER 31, 201.4 OTHER ITEM FOR CONSIDERATION — MINNESOTA LEGAL COMPLIANCE 2014-002: Collateral CoVerage Condition: Minnesota Statute §118A,03, requires that, to. the. extent that deposited funds exceed. federal deposit insurance, the City must obtain an assignment of pledged. collateral in an amount equal to.110 percent of the amount on deposit plus accrued: interest. Criteria: At December 31, 2014, the City did not meet the 11.0% collateraiization requirement. $2,141 of deposits were not fully collateralized due to timing of receipts.at the end of the Year. Effect: The. City is not in compliance with Minnesota Statutes. Causer Unknown Recommendation: We recommend. City management be constantly aware .of collateral requirements at its depository to ensure compliance with state statutes. Management. Response: City management is aware of this requirement and will continue to monitor. the collateral requirements for the.City's general checking account: 2014-003: Payment Declaration Condition: Minnesota Statute §471.391, subdivision2, requires each check. by which a claim is paid have printed on the reverse side, above the space for endorsement thereof, the following statement: "The undersigned payee, in endorsing this. check. declares. that the same is received in payment of a just and correct claim against the. city, and that no part of it has. heretofore been paid." Criteria: During 2014 it was noted checks issued in the second half of the year, the required declaration was not included on checks. Effect: The City is not in compliance with Minnesota Statutes: Cause: Turnover in staffing, Recommendation: We recommend the City implement policies and procedures to ensure the declaration is included as required by state statute: Management Response; City management is aware of this. requirement and will ensure the statute is met going forward, including when (if) turnover occurs in the future. (38)