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HomeMy WebLinkAbout2008 04-28 CCP Regular Session Public Copy AGENDA CITY COUNCIL STUDY SESSION April 28, 2008 6:00 P.M. City Council Chambers A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 1. City Council Discussion of Agenda Items and Questions 2. Miscellaneous a. Audit Entrance Conference 3. Discussion of Work Session Agenda Items as Time Permits 4. Adjourn I� WT City of Brooklyn Center A Millennium Community COUNCIL ITEM MEMORANDUM TO: Mayor and City Council FROM: Curt Boganey, City Manage DATE: April 23, 2008 SUBJECT: Audit Entrance Conference Recommendation: No Council action required. Background: James H. Eichten of Malloy, Montague, Karnowski, Radosevick, Co. P.A., the City auditors will be present at the City Council Study Session providing fifteen minute overview of the current annual audit. This entrance conference with the governing body is a new audit requirement as prescribed in SAS 114. I have enclosed an outline of the presentation provided by Mr. Eichten. Budget Issues: There are no budget issues to consider. 042808.auditor.council item memorandum.doc 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityolbrooklyncenter.org CERTIFIED PUBLIC ACCOUNTANTS City of Brooklyn Center Audit Entrance Conference 1. Terms of the Engagement A. Objective of the engagement A report on the fair presentation of the basic financial statements in conformity with accounting principles generally accepted in the United States of America, with an "in relation to" opinion on the combining and individual fund financial statements and supporting schedules. A report on compliance and on internal control over financial reporting based on an audit of financial statements performed in accordance with government auditing standards. A report on compliance with Minnesota state laws and regulations Our services will not include an audit in accordance with the single audit act which is required if the City expended over $500,000 of federal assistance funds during the year. We will also provide a management report to communicate comments and recommendations as a result of the audit. Our management report will include the formal required communications to the City Council as prescribed under SAS #114 Communication with those Charged with Governance. B. Management's responsibilities Management is responsible for the entity's financial statements. Management is responsible for establishing and maintaining effective internal control over financial reporting. Management is responsible for identifying and ensuring that the entity complies with the laws and regulations applicable to its activities. Management is responsible for making all financial records and related information available to the auditor. At the conclusion of the engagement, management will provide the auditor with a letter that confirms certain representations made during the audit. Management is responsible for adjusting the financial statements to correct material misstatements and for affirming to the auditor in the representation letter that the effects of any uncorrected misstatements aggregated by the auditor during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. C. Auditor's responsibilities We are responsible for conducting the audit in accordance with generally accepted auditing standards. The audit includes obtaining an understanding of internal control sufficient to plan the audit and to determine the nature, timing, and extent of audit procedures to be performed. D. Limitations on the engagement Standards require that the auditor obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. Accordingly, a material misstatement may remain undetected. Also, an audit is not designed to detect error or fraud that is immaterial to the financial statements. If, for any reason, the auditor is unable to complete the audit or is unable to form or has not formed an opinion, he or she may decline to express an opinion or decline to issue a report as a result of the engagement. An audit is not designed to provide assurance on internal control or to identify reportable conditions. However, the auditor is responsible for ensuring that the city council is aware of any significant deficiencies and material weaknesses that come to our attention. 2. Engagement Letter Refer to previously signed copy of engagement letter 3. Quality review report Transmittal of the auditor's most recent quality control review report is required when performing a financial audit under the Governmental Auditing Standards. 4. Fees for services Refer to previously signed copy of engagement letter 5. Timing A. Interim work Completed in February, 2008 B. Detailed audit plan We have provided the City with a list of all schedules and confirmations to be prepared. C. Field work We expect to complete fieldwork prior to May 15 2008 D. Report presentation We expect to present our reports to the city council, the financial commission, and management at a work session on June 2, 2008. 6. Communication with those charged with governance A. Communication of significant deficiencies and material weaknesses Auditing standards require significant deficiencies and material weaknesses to be communicated to those charged with governance. The communication may take place after the audit is concluded or during the audit if timely communication is important. The relative significance of the matters or the urgency of corrective follow -up action may influence the auditor's decision on when to communicate the conditions. B. Communication about fraud and illegal acts If we determine there is evidence fraud may exist (even if the matter is inconsequential) auditing standards require us to report it to the appropriate level of management. If the fraud or potential fraud involves senior management or causes the financial statements to be materially misstated, it will be reported directly to the city council. We are required to reach an understanding with the city council about the nature and extent of communication expected about immaterial fraud not involving senior management (such as misappropriations committed by lower level employees). In the absence of such an agreement, we should report all instances of fraud to both the appropriate level of management and the city council. C. Communication of other information Others matters which are required to be communicated to the city council will be included in our management report and include the following: Auditor responsibility The level of responsibility the auditor assumes for an audit performed in accordance with generally accepted auditing standards and the nature of the assurance an audit provides. Accounting policies The initial selection of and changes in significant policies or their application, methods used to account for significant unusual transactions, and the effect of significant accounting policies in controversial or emerging areas. Estimates The process management uses to formulate particularly sensitive accounting estimates and the basis for the auditor's conclusions about the reasonableness of those estimates. Adjustments The significant adjustments arising from the audit including those that have been reflected in the financial statements and those that were not. In addition, auditors are required to inform the city council about uncorrected or misstatements that management has concluded are not material to the financial statements. Other information The auditor's responsibility for unaudited information in documents containing audited financial statements, the procedures performed, and the conclusions reached. Disagreements All instances, including those that have been satisfactorily resolved, in which the auditor and management disagreed about matters that, individually or in the aggregate, could be significant to the entity's financial statements or the auditor's report. Opinion shopping The auditor must discuss matters that were the subject of management's consultation with other auditors. Prior to retention issues The auditor must discuss major issues that management discussed with the auditor in connection with the retention of the auditor, including the application of accounting principles and auditing standards. Difficulties Any serious difficulties the auditor encountered in dealing with management such as unreasonable delays in providing needed information, unreasonable timetable set by management, or unavailability of client personnel. 7. Discussion of prior year findings and recommendations in the 2006 audit and management reports A. 2006 1 Approval of Journal Entries B. 2006 2 Approval of Utility Billing Adjustments C. 2006 3 Determination of Water Consumption D. 2006 4 Liquor Inventory Adjustments E. 2006 5 Financial Statement Corrections F. 2006 6 Documenting Approval For Use of Paid Time Off for Department Heads 8. New Statement on Auditing Standards (SAS Suite) A. Eight new auditing standards B. More in -depth understanding of the entity and its environment, including its internal controls C. More rigorous assessment of risks of material misstatements based on that understanding D. Improved linkage between the assessed risks and the nature, timing, and extent of audit procedures E. Increased level of reporting of internal control findings and deficiencies 9. Contact Information James H. Eichten Principal Malloy, Montague, Karnowski, Radosevich, Co. P.A. 5353 Wayzata Blvd. Suite 410 Minneapolis, MN 55416 CITY COUNCIL MEETING City of Brooklyn Center April 28, 2008 AGENDA 1. Informal Open Forum With City Council 6:45 p.m. provides an opportunity for the public to address the Council on items which are not on the agenda. Open Forum will be limited to 15 minutes, it is not televised, and it may not be used to make vanes to make political endorsements or for personal attacks to air personality e p P tY grievances, p political campaign purposes. Council Members will not enter into a dialogue with citizens. Questions from the Council will be for clarification only. Open Forum will not be used as a time for problem solving or reacting to the comments made but, rather, for hearing the citizen for informational purposes only. 2. Invocation 7 p.m. 3. Call to Order Regular Business Meeting —The City Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 4. Roll Call 5. Pledge of Allegiance 6. Council Report 7. Approval of Agenda and Consent Agenda —The following tems are considered to be routine b the City Council and will be enacted by g Y tY one motion. There will be no separate discussion of these items unless a Councilmember so requests, in which event the item will be removed from the consent agenda and considered at the end of Council Consideration Items. a. Approval of Minutes 1. April 14, 2008 Study Session 2. April 14, 2008 Regular Session 3. April 14, 2008 Work Session b. Licenses 8. Presentations Proclamations /Recognitions/Donations a. Resolution Expressing Appreciation for the Donation of the Brooklyn Center Women's Club in Support of the 2008 Summer Fun Squad Program -Requested Council Action: Motion to adopt resolution. CITY COUNCIL AGENDA -2- April 28, 2008 b. Resolution Recognizing Ashlee Kephart as a 2008 National Caring Award Winner -Requested Council Action: Motion to adopt resolution. 9. Public Hearings None 10. Planning Commission Items None 11. Council Consideration Items a. Resolution Accepting the Executive Summary from Donald Salverda and Associates from the City of Brooklyn Center City Council and Department Heads 2008 Leadership Planning and Team Building Retreat and Adopting a Mission Statement, Values Statement, and Goals Program -Requested Council Action: Motion to adopt resolution. b. Resolution Establishing the Brooklyn Center Centennial Celebration Committee -Requested Council Action: Motion to adopt resolution. C. Resolution Accepting Quotation and Awarding Contract, Improvement Project No. 2008 -14, Contract 2008 -H, 2008 Diseased Tree Removal -Requested Council Action: Motion to adopt resolution. d. Resolution Establishing Park Restrictions on Xerxes Avenue, 55 Avenue North and 56 Avenue North -Requested Council Action: Motion to adopt resolution. e. Resolution Accepting Offer on Sale of $4,335,000 Taxable General Obligation Tax Increment Bonds, Series 2008A, and Pledging Tax Increments for the Security Thereof -Requested Council Action: Motion to adopt resolution. 12. Adjournment A city Ca,�ncll enda item No. 7 a i i MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION APRIL 14, 2008 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Tim Willson at 6:00 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Kay Lasman, Mary O'Connor, Dan Ryan, and Mark Yelich. Also present were City Manager Curt Boganey, Director of Fiscal Support Services Dan Jordet, Public Works Director /City Engineer Todd Blomstrom, Community Development Director Gary Eitel, City Attorney Mary Tietjen, and Carol Hamer, TimeSaver Off Site Secretarial, Inc. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS In relation to Agenda Item No. l If, Councilmember Lasman inquired what the time period will be for the abatement process to begin following the 10 day waiting period. Mr. Boganey explained the City will receive bids, so the estimated time will be at least two weeks. Councilmember Yelich requested the removal of Agenda Item No. 7b from the Consent Agenda. MISCELLANEOUS Councilmember Ryan inquired about the status of the Brookdale Mall /Sears Roebuck lawsuit. Mr. Boganey provided an overview of the lawsuit status. He indicated both parties requested a summary judgment, which was rejected by the judge. Subsequent to that the owners of Brookdale Mall and Sears Roebuck have been in negotiations to try to resolve the issue. Councilmember Lasman stated in regards to the increasing number of foreclosures, the League of Minnesota Cities' monthly magazine includes an article about a program being initiated in the City of Minneapolis that asks people to adopt vacant houses by keeping an eye on them. She suggested staff customize the activities included in the article to fit the City of Brooklyn Center and include the suggested activities in the City newsletter. There was discussion on whether the City should request residents to access properties that do not belong to them. It was suggested that this could be seen as the City asking citizens to trespass on private property. Mr. Boganey indicated the current edition of the City Newsletter will be out within one week and it will be a few months before the next edition goes out. The current edition includes suggestions and ideas on this topic. Mr. Boganey stated staff agrees that the City needs the support of the neighborhoods and residents to stay on top of what is going on. The City Attorney has advised staff of the need to be very careful in terms of encouraging people to go on to property owned by 04/14/08 -1- DRAFT someone else. The ideas included in the League of Minnesota Cities article are great ideas and staff would likely have included them in the City Newsletter in any event unless Council directs otherwise. It was suggested that staff contact the City of Minneapolis to determine if there have been any issues in relation to trespassing concerns. The majority consensus of the City Council was to direct staff to contact the City of Minneapolis to determine if there have been any issues in relation to trespassing concerns due to the "vacant house adoption" activities, and to proceed with including information in the City newsletter based on the suggestions included in the League of Minnesota Cities article. Councilmember Lasman suggested Ashlee Kephart be presented with a resolution commending her for her accomplishments, and that the resolution be presented at a City Council meeting if she would like to attend. The majority consensus of the City Council was to direct staff to proceed as suggested with the proposed resolution for Ashlee Kephart. Councilmember Yelich requested discussion from the Council regarding to what degree the conversion of single family homes to rental property is an important issue for the City to respond. There was discussion regarding the following in relation to rental property in the City: The conversion of property to rental is a market driven issue. The trend of an increasing number of households that cannot pay their mortgages has a negative effect on the City. A previous City Council responded to the increase of conversion to rentals by increasing the rental license fee in hopes to curb the amount of conversions. A future worksession will include recommendations from staff on this topic. The City needs to obey the law and grant rental licenses when the correct procedure is followed. The City has a right to instill standards for the operation of rental properties. What appears to be a significant growth in the amount of single family homes being rented may be more of an increase in the number of rental homes being licensed due to staff being more assertive in identifying homes that have previously been rented without a license. ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL Councilmember Lasman moved and Councilmember O'Connor seconded to close the Study Session at 6:45 p.m. Motion passed unanimously. RECONVENE STUDY SESSION Councilmember Lasman moved and Councilmember Ryan seconded to reconvene the Study Session at 6:50 p.m. Motion passed unanimously. 04/14/08 -2- DRAFT Councilmember O'Connor stated she was contacted by a woman who lives on Perry Avenue that has complained to the City for four years about the condition of the property behind her on Orchard i Avenue. She inquired about the process involved with this type of situation. Mr. Boganey reviewed the process followed when the City receives a complaint on a property. He indicated if it is determined that there is a violation of the City ordinance the full process may take six months; it would not take four years in any situation. Councilmember O'Connor indicated she will forward the property address to Mr. Boganey for staff to review. It was noted that the outline of this process illustrates that a system of administrative fines would accomplish the same thing in, a fair manner, but would be much more expeditious and at a far lower cost to all parties involved. ADJOURNMENT Councilmember Lasman moved and Councilmember Ryan seconded to close the Study Session at 6:58 p.m. Motion passed unanimously. 04/14/08 -3- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION APRIL 14, 2008 CITY HALL COUNCIL CHAMBERS 1. INFORMAL OPEN FORUM WITH CITY COUNCIL CALL TO ORDER INFORMAL OPEN FORUM The Brooklyn Center City Council met in Informal Open Forum called to order by Mayor Tim Willson at 6:45 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Kay Lasman, Mary O'Connor, Dan Ryan, and Mark Yelich. Also present were City Manager Curt Boganey, Director of Fiscal Support Services Dan Jordet, Public Works Director /City Engineer Todd Blomstrom, Community Development Director Gary Eitel, City Attorney Mary Tietjen, and Carol Hamer, TimeSaver Off Site Secretarial, Inc. Mayor Tim Willson opened the meeting for the purpose of Informal Open Forum. Ms. Christina Akinola, 5801 Ewing Avenue N, appeared before the Council and stated she is present to appeal assessments against two properties. One assessment is in the amount of $331.25 for a delinquent water bill assessed to the property at 5801 Ewing Avenue N. She stated there was a huge bill at the end of December in the amount of $1,122.63, of which $331.25 belonged to the previous owner. She was not aware of this at the time that she purchased the property, and there is no way for her to contact the previous owner. She spoke to Julie at the City, who said that the City had tried to contact the previous owner and the notices were coming back to the City. Ms. Akinola stated she also received an assessment for noxious weeds on a rental property that she had a rental license on. The City said they had sent mail to her, but she never received it. She should have received a letter saying that the weeds need to be cut, and she never received it until she received two invoices, and with the invoices she received the returned envelopes, which shows that she had not received anything previously. The assessment for the noxious weeds is in the amount of $281.25 plus a penalty for not paying. Mr. Boganey indicated Ms. Akinola has provided him with information on her situation. Staff is investigating both issues and Ms. Akinola should be receiving a letter this week. Council will be copied on the letter and provided a recommendation from staff. He informed Ms. Akinola he would be happy to discuss any additional questions once she has received the letter. Mr. Boganey answered q regarding questions of the Council re ardin the process to remove the assessments if that were to be the Council's decision after consideration of staff's investigation and recommendation. He indicated Council will be provided with documentation along with the copy of the letter to Ms. Akinola and Council can determine whether this is an item they wish to place on a future agenda. Councilmember Lasman moved and Councilmember Ryan seconded to close the Informal Open Forum at 6:50 p.m. Motion assed unanimously. p Y 04/14/08 -1- DRAFT 2. INVOCATION Councilmember Yelich requested a moment of silence and personal reflection as the Invocation. 3. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in Regular Session called to order by Mayor Tim Willson at 7:00 p.m. 4. ROLL CALL Mayor Tim Willson and Councilmembers Kay Lasman, Mary O'Connor Dan Ryan, and Mark Yelich. Also present were City Manager Curt Boganey, Director of Fiscal Support Services Dan Jordet, Public Works Director /City Engineer Todd Blomstrom, Community Development Director Gary Eitel, City Attorney Mary Tietjen, and Carol Hamer, Timesaver Secretarial, Inc. 5. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 6. COUNCIL REPORT Councilmember Ryan reported on attending the following events: Event to honor r former Mayor Phil Cohen on March 27 th, The event included an auction of donated items that raised money for charity and the Brooklyn Center Crime Prevention O Program. He commented on how much Mr. Cohen has given to the City of Brooklyn Center and the State of Minnesota. School District 281 Community Visioning Session: This was a strategic planning session to sharpen the goals and priorities for School District 281, which faces serious challenges going forward. City Expo on April 12 He appreciates the many City employees who gave a large part of their Saturday to the event. Councilmember Lasman reported on attending the following events: North Hennepin Chamber of Commerce monthly meeting on March 25 There was discussion of new members and several new businesses in the area; the citie s of Brooklyn Park, Maple Grove and Osseo provided updates; there was discussion on changes to the bylaws; the North Hennepin Chamber of Commerce Golf Tournament will be held on Y P June 24 and the Chair of the Governmen t Relations Committee was appointed. Brooklyn Center/Brooklyn Park Joint Community Dialogue on April 5 New immigrant residents were invited, and there were about 45 people in attendance. There were small group discussions. It was suggested that ways City p s for the Ci to help would be to have a multicultural gg liaison meeting dialogue with different groups, diversifying the Police Department, and recruiting new youth from diverse background. The event was both informative and productive. City Expo on April 12 The event was a great way for the City to showcase itself and citizens to get answers. It was efficient and well run. Phil Cohen's birthday celebration on March 27 It was great to be able to honor a citizen that has done so much for the City. 04/14/08 -2- DRAFT i Councilmember Yelich reported on attending the following events: City sponsored meeting to address the ground water contamination originating from the 57' and Logan Avenues site on March 27 The meeting was open to the public; the Minnesota Pollution Control Agency, the Minnesota Department of Health, and the City of Brooklyn Center were present. The meeting was very informative and the City is making an earnest and thoughtful approach towards solving and mitigating the problems associated with the contamination. He encouraged residents who are affected to give consideration to having their homes tested by contacting the City of Brooklyn Center. City Expo on April 12 t This was a great event that he would like to have continued in the future. He heard only positive things on the event. School District 281 Strategic Planning and Visioning Session: This was the first of several sessions that will be conducted to help the District formulate its strategic plan for the next several years. Councilmember Yelich encouraged residents to participate in the Shingle Creek Watershed Cleanup event on April 19 t, Councilmember O'Connor reported on attending the School District 281 Public Forum. She stated the District is looking for a vision five years from now. She stated the School District has money problems and questioned why they would hire consultants and request public input for five years from now. Mayor Willson reported on attending the following events and reported on the following upcoming events: Mayors Round Table for Youth Initiatives with himself and the Mayor of Brooklyn Park: The event was attended by a number of school officials; the cities continue to work together cooperatively. City Expo on April 12 It was a wonderful opportunity to meet and talk with a large number of organizations and to learn what they are doing in the City for youth and across the board. He thanked the City staff that gave up their Saturday to be there. Phil Cohen's birthday celebration on March 27 Mr. Cohen has given 40 years or so of civic duty and involvement with the City at various levels. This week on April 16 to the Brooklyn Center Crime Prevention award ceremony will be held iz at Constitution Hall. He commended the three City police officers that will be recognized. The Shingle Creek Watershed Cleanup will begin at 8:30 a.m. at the Community Center on April 19t He encouraged everyone to participate. He has been asked to speak at the Laotian New Year's Celebration in Crystal this Saturday. 7. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Lasman moved and Councilmember Ryan seconded to approve the Agenda and Consent Agenda, as amended, with the removal of Item No. 7b from the Consent Agenda to Council Consideration Item No. 11 g, and the following consent items were approved: 7a. APPROVAL OF MINUTES 1. March 24, 2008 Study Session 2. March 24, 2008 Regular Session 3. March 24, 2008 Work Session 7b. LICENSES 04/14/08 -3- DRAFT This item was moved to Council Consideration Item No. 11 g. 7c. Resolution Designating 2008 Planting List of Allowable Boulevard Tree Species 8. PRESENTATIONS PROCLAMATIONS /RECOGNITIONS/DONATIONS is 8a. RESOLUTION NO. 2008 -44 EXPRESSING RECOGNITION AND APPRECIATION OF LARRY HANSON FOR HIS 38 YEARS OF DEDICATED SERVICE TO THE CITY OF BROOKLYN CENTER Mayor Willson recited Resolution No. 2008 -44. Councilmember Ryan moved and Councilmember Yelich seconded to approve RESOLUTION NO. 2008 -44 Expressing Recognition and Appreciation of Larry Hanson for his 38 Years of Dedicated Service to the City of Brooklyn Center. Motion passed unanimously. 8b. RESOLUTION NO. 2008-45 RECOGNIZING THE DESIGNATION OF BROOKLYN CENTER AS A TREE CITY USA FOR THE SIXTEENTH CONSECUTIVE YEAR, AND A PROCLAMATION DECLARING APRIL 25, 2008 ARBOR DAY AND MAY 2008 ARBOR MONTH IN BROOKLYN CENTER Mayor Willson recited Resolution No. 2008 -45. Councilmember Lasman moved and Councilmember Yelich seconded to approve RESOLUTION NO. 2008-45 Recognizing the Designation of Brooklyn Center as a Tree City USA for the Sixteenth Consecutive Year. Motion passed unanimously. Mayor Willson recited the Proclamation Declaring April 25, 2008, Arbor Day and May 2008 Arbor Month in Brooklyn Center. Councilmember Lasman moved and Councilmember Ryan seconded to adopt the proclamation declaring April 25, 2008, Arbor Day and May 2008 Arbor Month in Brooklyn Center. Councilmember Ryan commended the Sons of American Legion for the $200 contribution to cover expenses for the Arbor Day event. Motion passed unanimously. 8c. PROCLAMATION DECLARING APRIL 22, 2008, AS EARTH DAY IN BROOKLYN CENTER Mayor Willson recited the Proclamation Declaring April 22, 2008, as Earth Day in Brooklyn Center. Councilmember Lasman 4 moved and Councilmember Yelich seconded to adopt the proclamation declaring April 22, 2008, as Earth Day in Brooklyn Center. 04/14/08 -4- DRAFT Motion passed unanimously. 9. PUBLIC HEARING —None. 10. PLANNING COMMISSION ITEMS None. 11. COUNCIL CONSIDERATION ITEMS lla. AMEND 2008 CITY COUNCIL MEETING SCHEDULE Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed amendment to the 2008 City Council meeting schedule to add a work session on Monday, May 19, 2008, at 6:00 p.m. to meet in the City Hall Council/Commission Conference Room with the Charter Commission. He indicated he has not yet received a firm commitment from the Charter Commission on the 6:00 start time. Councilmember O'Connor stated she is unable to make the proposed meeting. Councilmember Lasman moved and Councilmember Ryan seconded to amend the 2008 City Council meeting schedule and set date and time of joint meeting with Charter Commission for Monday, May 19, 2008, at a tentative time of 6:00 p.m. to be held in the Council /Commission Conference Room at City Hall. Councilmember O'Connor voted against the same. Motion passed. llb. RESOLUTION NO. 2008 -46 ACCEPTING BID AND AWARDING A CONTRACT, IMPROVEMENT PROJECT NOS. 2008 -01, 02, 03, AND 04, 2008 RESIDENTIAL AREA NEIGHBORHOOD STREET, STORM DRAINAGE, AND UTILITY IMPROVEMENTS Mr: Blomstrom introduced the item, discussed the history, stated the purpose of the proposed resolution, and answered questions of council members on what is covered in the improvement projects. Councilmember Lasman moved and Councilmember Ryan seconded to approve RESOLUTION NO. 2008 -46 Accepting Bid and Awarding a Contract, Improvement Project Nos. 2008 -01, 02, 03, and 04, 2008 Residential Area Neighborhood Street, Storm Drainage, and Utility Improvements. Motion passed unanimously. llc. STAFF RECOMMENDATION TO CANCEL PROPOSED ASSESSMENT FOR DELINQUENT WEED REMOVAL COSTS FOR 6006 EMERSON AVENUE NORTH Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. Councilmember Lasman moved and Councilmember O'Connor seconded to accept the staff recommendation to cancel proposed assessment for delinquent weed removal costs for 6006 04/14/08 -5- DRAFT Emerson Avenue North. Motion passed unanimously. lld. STAFF RECOMMENDATION TO CANCEL PROPOSED SPECIAL ASSESSMENT FOR DISEASED TREE REMOVAL COST FOR 5405 PENN AVENUE NORTH Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. He informed Council that staff believes this item and the previous item are closely related to the foreclosure issue in the City with a number of vacant properties in various states of foreclosure and vacant for long periods of time. Staff believes this type of situation could occur more in the future. They have modified their processing of invoices in such a way that they will very quickly pass that information on to the Assessing Department so they can immediately note in their records at the soonest possible date that there may be a pending assessment. There was discussion on the collection notification process. Councilmembers Yelich and Ryan commended the City Manager and staff for making adjustments to minimize these instances. Councilmember Yelich moved and Councilmember Ryan seconded to approve the staff recommendation to cancel the proposed special assessment for diseased tree removal cost for 5405 Penn Avenue North. Motion passed unanimously. Ile. RESOLUTION NO. 2008 -47 PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $4,335,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2008A Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. Mr. Jordet answered questions of council members on the balance of the City's current bonds and the proposed taxable general obligation tax increment bonds. Councilmember O'Connor stated her opposition to the proposed resolution. There was discussion on the City Council goals of redevelopment in the City and lowering taxes for the residents. It was noted that building the commercial/industrial tax base is a tool to move in the direction of lowering the tax rates for the residents in the City. Councilmember Lasman moved and Councilmember Ryan seconded to approve RESOLUTION NO. 2008 -47 Providing for the Competitive Negotiated Sale of $4,335,000 Taxable General Obligation Tax Increment Bonds, Series 2008A. Mr. Jordet answered questions of the Council Members on Tax Increment Financing (TIF) District No. 3. 04/14/08 -6- DRAFT There was discussion on the effect of the proposed right -of -way improvements on property values, redevelopment efforts in the City, responsible management of debt to improve and develop the City, and the use of TIF funds to spur redevelopment. Councilmember O'Connor voted against the same. Motion passed. 11L RESOLUTION NO. 2008 -48 ORDERING THE CORRECTION OF HAZARDOUS CONDITIONS AND FURTHER FOR THE ABATEMENT OF PUBLIC NUISANCES WITH RESPECT TO THAT REAL ESTATE LOCATED AT 6701 REGENT AVENUE NORTH, BROOKLYN CENTER, MINNESOTA 66429 LEGALLY DESCRIBED AS LOT 8, BLOCK 3, NORDSTROM'S TERRACE ACCORDING TO THE PLAT ON FILE WITH THE REGISTRAR OF TITLES, HENNEPIN COUNTY, MINNESOTA IN THE CITY OF BROOKLYN CENTER, HENNEPIN COUNTY, MINNESOTA Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. He answered questions of Council Members regarding the City's efforts to get the property owner to comply with the required correction of conditions on the property. He explained staff has no reason to believe that additional time will result in compliance from the property owner. There was discussion on the role of the City Council as elected officials to try to keep people safe in the City. It was pointed out that to let this property continue in the current condition now that the Council has been informed of the condition on the property would not be fulfilling the Council's duties. Councilmember Lasman moved and Councilmember Ryan seconded to approve RESOLUTION NO. 2008 -48 Ordering the Correction of Hazardous Conditions and Further for the Abatement of Public Nuisances with Respect to That Real Estate Located at 6701 Regent Avenue North, Brooklyn Center, Minnesota 66429 Legally Described as Lot 8, Block 3, Nordstrom's Terrace According to the Plat on File with the Registrar of Titles, Hennepin County, Minnesota in the City of Brooklyn Center, Hennepin County, Minnesota. Councilmember O'Connor voted against the same. Motion passed. 11g. LICENSES MECHANICAL Aspenair Heating Cooling 308 SW 15 Street, Forest Lake B D Plumbing, Heating Air 4145 MacKenzie Court NE, St. Michael Building Mechanical Systems 384543 d Avenue S, Minneapolis Centerpoint Energy 9320 Evergreen Blvd, Coon Rapids Modern Heating and Air 2318 First Street NE, Minneapolis Pierce Refrigeration 19202 nd Avenue, Anoka Quality Refrigeration, Inc. 6237 Penn Avenue S, Richfield St. Cloud Refrigeration, Inc. 604 Lincoln Avenue NE, St. Cloud Solid Refrigeration 1125 American Blvd E, Bloomington MOTOR VEHICLE DEALERSHIP BB Motors, LLC dba Luther Brookdale Chevrolet 6701 Brooklyn Boulevard R.L. Brookdale Motors 6801 Brooklyn Boulevard 04/14/08 -7- DRAFT Brookdale Motor Sales 6800 Brooklyn Boulevard RENTAL INITIAL 1405 63 Ln N LeRoy Bendickson 1612 68 Ln N Frank Lachinski 6828 Fremont PI N Zoua Victorianne Lee 6807 Humboldt Ave N C301 William Newgren 6813 Humboldt Ave N B 104 Robert Perri 5736 June Ave N Jackie Gary Hempeck 5935 Lyndale Ave N Byron Watts 5307 Penn Ave N Ben Dossman 6012 York Ave N Korpo Mgaima Presley Hanson RENEWAL Carrington Drive Apts 1302 -08 69th Ave N 6910 -20 Humboldt Myra Chazin Ryan Creek Manor 360147' Ave N Drew Kabanuk Ryan Creek Manor 3613 47 Ave N Drew Kabanuk Ryan Creek Manor 3713 47' Ave N Drew Kabanuk 3614 50' Ave N Kjirsten Bjerke Keenan 120157' Ave N Edward Doll Margeret Doll 1100 69" Ave N Evangelical Lutheran Church of the Master cn Eugene Diane Wright 4408 69 Ave N g g 5200 France Ave N Christian Knutson 5319 Queen Ave N Karen Pelak 5337 -39 Queen Ave N Ambe Funwi 5256 Twin Lake Blvd E Brian Somkhan sc a 3807 61 Ave N Toslu Metzger g 531362 nd Ave N Doua Yang 5342 70 Cir Nick Mbuba 542872 nd Cir Joseph Ditto 5901 Aldrich Ave N Scott Vickie Huber 5419 Humboldt Ave N Cecilia Pineda 5701 James Ave N Victor Roxann Shkaberin 4207 Lakeside Ave N #226 Beach Condo Association 5728 Logan Ave N Ayi Kokodoko 3306 Quarles Rd John Sonja Simpson 6324 Scott Ave N Benson Vang 6926 West River Rd Mark Pivec SIGNHANG ER Albrecht Sign Co. 12437 Magnolia Circle NW, Coon Rapids i 04/14/08 -8- DRAFT Councilmember Yelich stated he would like to call attention to the rental licenses and the inconsistencies in the standards of the multi family and single family rental ordinances. He encouraged the Council I to have staff provide recommendations on how to improve the consistency g in those standards. Councilmember Yelich moved and Councilmember Lasman seconded to approve the above licenses. It was noted that staff has been directed to look at the issue of rental properties in the City and will be bringing a report forward in the near future. Mr. Boganey stated staff has put together several teams to look at rental properties in a holistic manner in order to recommend strategies on rental properties in a variety of ways. In his most recent conversation with the staff person overseeing that process it was indicated that the groups are coming close to the final recommendation. He expects it would be in the fairly near future that staff will bring forward a set of recommendations that attempt to address the concerns in a fairly comprehensive manner. Motion passed unanimously. 12. ADJOURNMENT Councilmember Lasman moved and Councilmember Ryan seconded adjournment of the City Council meeting at 8:13 p.m. Motion passed unanimously. 04/14/08 -9- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION APRIL 14, 2008 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council /Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Tim Willson at 8:14 p.m. ROLL CALL Mayor/President Tim Willson and Councilmembers /Commissioners Kay Lasman, Mary O'Connor, Dan Ryan, and Mark Yelich. Also present were City Manager Curt Boganey, Director of Fiscal Support Services Dan Jordet, Public Works Director /City Engineer Todd Blomstrom, Community Development Director Gary Eitel, City Attorney Mary Tietjen, and Carol Hamer, TimeSaver Off Site Secretarial, Inc. BROOKLYN CENTER FIRE DEPARTMENT ANNUAL STATISTICAL REPORT Postponed to the next City Council/Economic Development Authority (EDA) Work Session. TEDDY BEAR MANAGEMENT LLP LETTER REQUESTING EXCEPTIONS TO THE RENTAL ORDINANCE Mr. Boganey stated staff is seeking direction in response to a letter received from Mr. Leon R. Fischer of Teddy Bear Management LLP, the new owner of Twin Lakes Manor. Mr. Fischer is requesting that the City Council waive the application fee and inspection requirements for his new rental license. In the letter to the City Mr. Fischer indicates that he believes the current license expires on December 31, I, Y 2008. It has been explained to Mr. Fischer that under the City ordinance licenses are not transferable and that new owners are responsible for applying for and receiving a rental license. Mr. Boganey stated the City Attorney has advised that granting the request of Mr. Fischer and waiving the fee without amending the ordinance would be an unlawful gift. The Council would need to amend the ordinance in order to accommodate this request. There was discussion on the requirement for a full public process, including research by staff, in order to amend a City ordinance. It was noted that granting this request to waive the application fee and inspection requirements would open the door to future property owners requesting prorated licenses. It was also noted that the City Attorney has advised it would be an unlawful gift to grant this request without changing the ordinance. Mr. Leon Fischer, owner of Teddy Bear Management LLP, addressed the Council and stated he also represents Teddy Bear Investment, which purchased Twin Lake Manor. He stated they put a lot into the property and it took a long time to get it licensed. It would be a better use of resources to get issues taken care of on the rop e rtY g opportunity g He is looking for an o ortuni to et things done instead of tying up p many months with the re- inspection process. The $8,000 inspection fee is a waste of money at this point that could be put into the property. He stated he owns a property in the City of New Hope where 04/14/08 -1- DRAFT they have a similar ordinance. He took that property over right after the bank cleared title on it; the City had just finished the inspection and waived the additional inspection as long as the money was put into the building. There was discussion on whether there is the opportunity for a lower inspection fee on this property since the inspection was recently completed. Mr. Boganey explained the fee is based on the total size of the complex and would not be reduced based on the date of the last inspection. It was noted that the inspection will provide the opportunity to inspect units that may not have been inspected previously and will provide Mr. Fischer with feedback on what needs to be done in those units. The majority consensus of the City Council was to direct staff not to grant the request of Teddy Bear Management LLP to waive the application fee and inspection requirements for a new rental license, and not to amend the Rental Licensing Ordinance. CAPITAL MAINTENANCE PLANNING Mr. Boganey provided background information on the authorization of the Capital Maintenance Plan for municipal public buildings. He reviewed that during the 2008 budget approval process there was discussion of the building maintenance study. Council adopted a budget that increased the amount of funds transferred from the Municipal Liquor Fund to the General Fund that is estimated to be a sufficient amount to implement this Plan at least through the year 2010. Further discussion was referred to a work session review. Mr. Boganey stated staff's analysis is that it will cost an average of $291,000 per year to cover the General Fund portion of these maintenance needs throughout the life of the Plan. This would represent a 2.04% increase in the annual levy if the entire amount were to be paid through the levy. This is the policy choice Council could be presented with in the year 2011. Staff believes this would be the worst case scenario. Staff believes there are alternative funding sources to reduce the $291,000 amount. Mr. Boganey and Mr. Jordet provided an overview and answered questions from Council on the following funding alternatives: 1) continuing the transfer from the Municipal Liquor Fund throughout the life of the Plan; 2) grants; 3) amending the policy to reduce the reserve requirement in the Operating Fund balance; 4) $300,000 lump sum transfer from the Municipal Liquor Fund. It was noted that there are many variables involved when trying to come up with a long term solution outside of two to five years. It was noted that Local Government Aid (LGA), which is being considered by the State Legislature, could be another possible funding source. It was requested that staff provide Council with additional information regarding the risks of reducing the Operating Fund balance. It was noted that the anticipated maintenance costs for the Community Center are very high in the years 2011 and 2013. Mr. Blomstrom provided an overview of the anticipated maintenance on the Community Center in the years 2011 and 2013. It was suggested that the City sell the Community Center. Mr. Blomstrom advised maintenance costs for the pool have been identified, but additional analysis is needed to determine the actual long range cost if the City decides to keep the pool. It was noted that during the remodeling of the Community Center in 2002 it was pointed out that there were about 10 to 15 more useful years in the pool area of the Community Center. At that time there was discussion about a referendum being conducted to 04/14/08 -2- DRAFT determine the community's long term desires related to the Community Center and whether the community g pay is willing to a for those services. There was discussion on obtaining feedback from the community regarding the Community Center during the comprehensive planning process. The majority consensus of the City Council was to direct staff to continue to maintain municipal public buildings and to work on viable plans for funding the Capital Maintenance Plan, and to provide Council with draft questions to survey the public regarding the Community Center during the comprehensive planning process. FRANCHISE FEE AGREEMENT AMENDMENT Mr. Boganey stated the City has had franchise fees with the two private utility companies since December of 2003. The fees have been used exclusively to fund the City share of street reconstruction projects. Mr. Boganey provided information regarding the- process to increase the amount of the franchise fee. He advised as they attempt to do more and more street reconstruction in the City a funding source will be needed for the City's share of that cost unless the City is going to pass on more of the share of that cost to benefiting property owners. Staff is seeking direction as to whether a franchise fee adjustment should be considered in advance of the 2009 budget adoption with notice provided to the utility of the intent. It was noted that the franchise fee spreads the cost of funding street reconstruction projects across the community, while the assessment process is more intrusive for the homeowners in the project areas. It was also noted that a 3% increase would represent an increase of one nickel per month and will provide necessary funding for the street reconstruction program. The majority consensus of the City Council was to direct staff to schedule a future work session J t3' agenda item for the Council to determine whether to proceed with a 3% franchise fee increase with the 2009 preliminary budget adoption, and to provide comparison data on franchise fees being charged in other municipalities. 2011 BROOKLYN CENTER CELEBRATION Mr. Boganey indicated Council has been provided with a draft Centennial Project Outline, draft invitation letter requesting community organizations to appoint delegates to serve on the Centennial Celebration Committee (CCC), a list of religious institutions in the City, and a list of potential CCC members. Mr. Boganey suggested Council review the information and provide feedback to staff. Mayor/President Willson stated Diane Sannes has agreed to serve as the CCC Chair. Ms. Sannes has requested to be provided with explicit guidelines on what her duties will be. It was suggested that the local high schools be contacted to encourage participation by teen youth. The majority consensus of the City Council was to direct staff to include the creation of the Centennial Celebration Committee on the agenda of the next City Council meeting. 04/14/08 -3- DRAFT 2008 COUNCIL RETREAT FOLLOW UP Mr. Boganey reviewed with Council that a consensus review of Council Strategic Goals was established at the 2008 Council Department Head Retreat. He stated Council has been provided with a report on the retreat, which includes a list of recommended actions. Mr. Boganey requested feedback from Council on any modifications, changes, or additions. He indicated formal action to adopt the new goals and revised mission statement will be included on the next City Council agenda. Staff will then fine tune the priorities and issues, strategies, and action plans. The following corrections were requested to the City of Brooklyn Center Council and Department Heads 2008 Leadership Planning Team Building Retreat Report: Page 6, paragraph 1: "The Mission Statement is a statement that describes the orizanization's.. Page 10, item 8: "Progress made on administrative fin& fines" d communicate openly with the c manager Page 22, item 5. To share information an p y tY and other g council members Der requirements of the ODen Meeting Law." Councilmember /Commissioner Yelich expressed concern that although the identified goals could be classified as good intentions or good priorities, they cannot be classified as goals because they are too ambiguous to measure progress and they do not provide staff with clear direction. There was discussion on the list of goals. It was noted that in relation to goal #1, Council is provided with a report from the Police Chief that shows in a quantifiable way one of the ways in which they are providing a safe and secure community. It was pointed out that a number of things are being done, and goals that are too specific are limiting. Mr. Boganey stated the nine goals set for the year provide direction that is clear enough for staff to act will staff interpretation of what the believe will help on. Council be provided with s a s p achieve these A rp Y goals, which will include measurable results. If Council does not concur with the measurable results that are presented, direction and feedback at that time would be helpful to staff. It was noted that the closing remarks of the retreat focused on the need for the City Council and staff to be mission and oal driven and to accept and appreciate diversity, be team la and to focus g p PP Y� players, Y on the "big picture". gp ADJOURNMENT Councilmember /Commissioner Ryan moved and Councilmember /Commissioner Lasman seconded adjournment of the City Council/Economic Development Authority Work Session at 10:07 p.m. Motion passed unanimously. 04/14/08 -4- DRAFT City Council Agenda Item No. 7b COUNCIL ITEM MEMORANDUM TO: Curt Boganey, City Manager FROM: Maria Rosenbaum, Deputy City Clerk DATE: April 22, 2008 SUBJECT: Licenses for Council Approval Recommendation: I recommend that the City Council approve the following list of licenses at its April 28, 2008, meeting. Background: The following businesses /persons have applied for City licenses as noted. Each business /person has fulfilled the requirements of the City Ordinance governing respective licenses, submitted appropriate applications, and paid proper fees. Applicants for rental dwelling licenses are in compliance with Chapter 12 of the City Code of Ordinances, unless comments are noted below the property address on the attached rental report. FIREWORKS TEMPORARY Cub Foods 3245 County Road 10 MECHANICAL Erickson Plumbing, Heating, and Cooling 147192 nd Lane NE, Blaine Home Depot Home Services 5169 Winnetka Ave N, New Hope Louis Degidio Services, Inc. 21033 Heron Way, Lakeville M C Mechanical 926 Dale Street, St. Paul Yale Mechanical 9649 Girard Ave S, Minneapolis RENTAL See attached report. SIGN HANGER Express Signs and Balloons, Inc. 19320 Yucon Street NW, Cedar Nordquist Sign Company 312 W. Lake Street, Minneapolis Phoenix Signs LLP 10856 Hwy 81, Maple Grove Signation Sign Group 6840 Shingle Creek Pkwy, Brooklyn Center AIL p r Rental. L llc+enses fir Council Ap yal on April; 282008yr Inspector t cle rk a(erlt Glerk fi Police Utilities Assessing �elimgenewa� 8npa�a 7, npai Property Address_: Type �r Initial Owner caf(s for 4ovice Utilities 3218 67th Ave N ISingle Family I Initial I Warren Comeaux None per 12 -911 ordinance OK OK 5937 Abbott Ave N Famil Sin le `None per 12 -911 ordinance OK OK g Y Initial Mark Crost I Ryan Lake Apts 1 Bldg 3401 -13 47th Ave N 22 Units Renewal Clover Management None per 12 -913 ordinance OK OK 1510 69th Ave N Need to repair, prime, paint exterior fascia, and /or soffit. 1 Bldg Deer Meadow Holdings, LLC c/o Weather Deferral 4 Units Renewal Howard Lapides None per 12 -911 ordinance OK OK 3715 69th Ave N Two Family (1) Renewal Gary Olson None per 12 -911 Ordinance OK OK 3612 58th 1/2 Ave Single Family Renewal Selena Lee None per 12 -911 ordinance OK OK 4213 63rd Ave N Single Family Renewal Bryan Friendshuh None per 12 -911 ordinance OK OK 1323 67th Ln N ISingle Family I Renewal ITerry Hartmann INone per 12 -911 ordinance OK OK 1300 68th Ln N ISingle Family I Renewal ITerry Hartmann INone per 12 -911 ordinance I OK OK 5348 70th Cir Single Family Renewal Nicholas Antwi None per 12 -911 ordinance OK OK 1706 71st Ave N Single Family Renewal Patricia Sandeen None per 12 -911 ordinance OK OK 4707 Eleanor Ln Single Family Renewal Todd Vlasaty None per 12 -911 ordinance OK OK 16031 Halifax Ave N ISingle Family I Renewal I Luis Perez (None per 12 -911 ordinance I OK I OK i 5200 Howe Ln Single Family Renewal Kazim Adeoti None per 12 -911 ordinance OK OK 5755 Humboldt Ave N ISingle Family I Renewal IToan Truong (None per 12 -911 ordinance I OK I OK 1 7169 Unity Ave N Single Family Renewal IAngelique Brown INone per 12 -911 ordinance I OK I OK I i City C oun�il Age Item NO' 8a OMT City of Brooklyn Center A Millennium Community COUNCIL ITEM MEMORANDUM TO: Curt Boganey, City Manager FROM: Jim Glasoe, Director of Community Activities, Recreation and Services DATE: April 23, 2008 SUBJECT: Resolution Expressing Appreciation for the Donation of the Brooklyn Center Women's Club in Support of the 2008 Summer Fun Squad Program Recommendation: Staff recommends acceptance of this donation and asks that it be coded to the corresponding activity budget. Background: The Brooklyn Center Women's Club has presented to the City a donation of three hundred dollars, ($300.00) and has designated that it be used to support the 2008 Summer Fun Squad Program. This donation will be used to purchase program supplies, allowing us to keep registration fees as low as possible. Budget Issues: None noted C: Fiscal Support Services 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityofbrooklyncenter.org Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION EXPRESSING APPRECIATION FOR THE DONATION OF THE BROOKLYN CENTER WOMEN'S CLUB IN SUPPORT OF THE 2008 SUMMER FUN SQUAD PROGRAM WHEREAS, the Brooklyn Center Women's Club has presented to the City a donation of three hundred dollars, ($300), and asked that it be used to support the 2008 Summer Fun Squad Program; and WHEREAS, the City Council is appreciative of this donation, and commends the Brooklyn Center Lions Club for its civic efforts. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota: 1. Acknowledges the donation with gratitude. 2. Appropriates the donation to the corresponding activity budget. April 28, 2008 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. I Cl Coun cil Agenda Item NO- 8b COUNCIL ITEM MEMORANDUM TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk� DATE: April 22, 2008 SUBJECT: Resolution Recognizing Ashlee Kephart as a 2008 National Caring Award Winner Recommendation: It is recommended that the City Council consider adoption of a Resolution Recognizing Ashlee Kephart as a 2008 National Caring Award Winner. Background: At the recommendation of Mayor Willson, a recognition resolution has been drafted in honor of Ashlee Kephart. Budget Issues: There are no budget issues to consider. i its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION RECOGNIZING ASHLEE KEPHART AS A 2008 NATIONAL CARING AWARD WINNER WHEREAS, Ashlee Kephart is one of five young people in America to receive the Caring Institute 2008 National Caring Award; and WHEREAS, on April 7, 2008, Ashlee Kephart was inducted into the Hall of Fame for Caring Americans, a museum located at 320 A Street in Washington, DC, in what was the first Washington, DC, home of Frederick Douglass, the great human rights leader; and WHEREAS, Ashlee Kephart is founder of Kids for a Better World and donates books, household items, and shoes to thousands of people in Africa and the United States and many are orphans and disaster victims who find comfort in her "caring bags" full of socks, snacks, toiletries, and cards saying, "I CARE ABOUT YOU; and WHEREAS, Ashlee Kephart does all this because she knows caring means identifying with someone you've never met, and she brings the same empathy to her recent book about coping with her father's death, A Special Way of Remembering, which speaks to children who have lost a parent with this simple but moving advice: "We shouldn't forget somebody important in our lives. Think about those people and, while you are remembering, do what you love to do." NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that Ashlee Kephart, our 2008 National Caring Award winner, be and hereby is commended for promoting the values of caring, integrity, and public service. Anril 28, 2008 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. C 1 CARING OSTITUTE HONORARY BOARD OF March 27, 2008 Hon. John Kasich TRUSTEES Hon. William J. Keating Honorable Robert J. Dole, Hon. Jack Kemp Chair C. Everett Koop, M.D. Patch Adams, M.D. Mr. Paul David Leopoulos Hon. John B. Anderson Hon. Bob Livingston Ms. Kathy Mattea Mr. Walter Anderson Jack B. McConnell, M.D. Ms. Maya Angelou The Honorable Tim Willson Hon. Howard M. Metzenbaum Hon. Robert M. Ball Brooklyn Center City Hall Hon. Carol Moseley -Braun Mr. Paul L. Berry, Jr.. Jr: Hon. Ben Nelson Hon. James J. Blanchard 6301 Shingle Creek Parkway Hon. Nancy Brinker Brooklyn enter MN. 55430 Mr. William Panetta i Hon. William E. Brock, III rn Hon. Leon E. P Pannetta Mr. Tom Peters Hon. Dale Bumpers Robert N. Butler, M.D. Dear Mayor Willson: Ms. Berry D. Pope Ms. Kaye Lani Rae Rafko- Wilson Hon. Joseph A. Califano, Jr. Ms. Cokie Roberts Hon. Thomas R. Carper Mr. S. Truett Cathy It is a pleasure to inform you that one of your constituents has Mr. Tim Sanders Mr. Marvin Cetron been selected among the five most caring men and women in Hon. Patricia Schroeder ak Cho ra, M.D. Mr. Horst H. Schulze Dee P P America by a secret ballot vote of the trustees on this letterhead. Mr. Willard sooty Ms. on. D They include: Hon. Kathleen Sebelius e Church Hon. Dick Clark Hon. Jeanne Shaheen Hon. Max Cleland Bernie S. Siegel, M.D. Dr. Ruth L. Constant 0 Ms. Ashlee Kephart Hon. Alan Simpson Ms. Mary Jo Copeland 5130 65' Ave. N Hon. Louis Stokes Hon. Emilio Q. Daddario Mr. Sam Daley- Harris Brooklyn Center, MN 55429 -2011 Ms. Susan Sullivan Hon. Hal Daub 763 533 -1110 Ms. Mary Sucher Hon. Billy Tauzin Mr. Hugh Downs M Hon. Tommy G. Thompson Mr. Daniel J. Edelman Mr. Mike Vance Hon. Donald M. Fraser She will receive her award on April 7, 2008, in a ceremony Mr. Millard Fuller beginning at 6 m. at Marriott Park Hotel 2660 Ms. Margaret Wheatley g g t th M tt W 1> Hon. James C. Wright, Jr. Hon. Parris Glendening Woodley Rd., NW, in Washington, DC. Ms. Susan Goldwater Levine BOARD of DIRECTORS Ms. Lilibet Ha g el Carl A. Hammerschlag, M.D. We would be pleased to have you attend the Gala which marks Honorable Mel Levine Hon. Mark Hatfield their induction into the Hall of Fame for Caring Americans, a Chair Hon. William D. Hathaway Kathleen M. Brennan Hon. Margaret M. Heckler museum located at 320 A Street in Washington, DC, in what President Dr. Dorothy Height was the first Washington, DC, home of Frederick Douglass, the Gary M. Bremer Hon. Alexis Herman great human rights leader. As an alternative, we would invite Vice Chair Sandra Hernandez, M.D. Fr. Theodore M. Hesburgh you to send a letter of congratulations to these good people who Robert L. Byers Ms. Frances Hesselbein have each lived exemplary lives of service to others. Diane Deacon Mr. Lloyd Hill Glenn Kielty Mr. David Horowitz Mr. Jon M. Huntsman Rodney D. Windley Mr. Kevin Johnson Val J. Halamandaris Hon. J. Bennett Johnston Founder and Executive Director 228 Seventh Street, SE Washington, DC 20003 phone 2021547 -4273 fax 2021547 -4510 www.caring.org As you know, the Caring Institute's purpose is to promote caring, integrity and public service in America. One of the ways. that we do this is by identifying individuals who personify these values and hold them out as role models to be emulated by others. I am enclosing a press release issue by the Chairman of our Board of Trustees, Senator Bob Dole, which provides you with more details. You know you have my very great respect and admiration now and always. a mandaris Executive Director f 1 C' March 20, 2008 Contact: FOR IMMEDIATE RELEASE Mayor Tim Willson Honors Ashlee Kephart as 2008 Caring Award Winner Founder of Kids for a Better World to be Inducted Into Caring Institute's Hall of Fame for Caring Americans Location Mayor Tim Willson congratulates Ashlee Kephart of Brooklyn Center as a 2008 Caring Award winner. She will be honored at a celebration on April 7 in Washington, DC, at the Marriott Wardman Park Hotel. Five adults and five young adults are receiving Caring Awards this year. Quote from Mayor: Ashlee has a special way of remembering those in need. As founder of Kids for a Better World, she donates books, household items and shoes to thousands of people in Africa and the U.S. Many are orphans and disaster victims, who find comfort in her "caring bags" full of socks, snacks, toiletries and cards saying, "I Care About You. Ashlee does all this because she knows, "caring means identifying with someone you've never met." She brings this same empathy to her recent book about coping with her father's death. A Special Way of Remembering speaks to children who've lost a parent with this simple but moving advice: "We shouldn't forget somebody important in our lives. Think about those people and, while you are remembering, do what you love to do." The Caring Institute's mission is to promote the values of caring, integrity, and public service. It was founded in 1985 by Val J. Halamandaris after a meeting with Mother Teresa of Calcutta. Mother Teresa suggested that there was a poverty of the spirit in the developed world which was much worse than the poverty of the body seen in the third world and asked Halamandaris to do something about it. Mother Teresa suggested identifying people who give back to society in extraordinary ways and holding them up as role models to be identified by others. The Caring Institute is a 501(c)(3) charitable organization. Visit the Web site at www.caring.org. i �C 0 CARING I NSTITUTE HONORARY BOARD of FOR IMMEDIATE RELEASE Hon. John Kasich TRUSTEES Hon. William J. Keating Honorable Robert J. Dole, March 26 2008 Hon. Jack Kemp Chair C. Everett Koop, M.D. Patch Adams, M.D. Mr. Paul David Leopoulos Hon. John B. Anderson Hon. Bob Livingston Mr. Walter Anderson Contact: Val J. Halamandaris Ms. Kathy Mattea Ms. Maya Angelou Richard Brennan J ack B. McConnell, M.D. Hon. Robert M. Ball Maureen Ryan Hon. Howard M. Metzenbaum Hon. Carol Moseley -Braun Mr. Paul L. Berry, Jr. (202) 5474273 Hon. Ben Nelson Hon. James J. Blanchard Mr. William D. Novelli Hon. Nancy Brinker Hon. William E. Brock, III Hon. Leon E. Panetta Hon. Dale Bumpers Mr. Tom Peters Ms. Betty D. Pope Robert N. Butler, M.D. MOST CARING PEOPLE IN AMERICA NAMED Ms. Kaye Lani Rae Rafko- Wilson Hon. Joseph A. Califano, Jr. Ms. Cokie Roberts Hon. Thomas R. Carper Caring Institute Names 2008 Inductees to the Hall of Fame for Mr. Tim Sanders Mr. S. Truett Cathy Mr. Marvin Cetron Caring Americans Hon. Patricia Schroeder Deepak Chopra, M.D. Mr. Horst H. Schulze Ms. Bethine Church Washington, DC Senator and former Majority Leader, Robert J. Mr. Willard Scott 0 Hon. Dick Clark Hon. Kathleen Sebelius Dole, Chairman of the Board of Trustees of the Caring Institute, today Hon. Jeanne Shaheen Hon. Max Cleland Dr. Ruth L. Constant announced the winners of the 2008 National Caring Awards. Bernie S. Siegel, M.D. Ms. Mary Jo Copeland Hon. Alan Simpson Hon. Emilio Q. Daddario Five remarkable adults and five youths will be honored during the Hon. Louis Stokes Mr. Sam Daley- Harris National Caring Awards ceremony at 6:00 p.m. on April 7 at the Ms. Susan Sullivan Ms. Mary Sucher Hon. Hal Daub Marriott Wardman Hotel in Washington, DC. Hon. Billy Tauzin Mr. Hugh Downs Mr. Daniel J. Edelman Hon. Tommy G. Thompson Hon. Donald M. Fraser On behalf of our board of trustees, it is a great honor for us to pay Mr. Mike Vance Mr. Millard Fuller tribute to these extraordinary people who have used their lives for the Ms. Margaret Wheatley Hon. Parris Glendenin Hon. James C. Wright, Jr. g betterment of others. They are wonderful role models and the very Ms. Susan Goldwater- Levine p ersonification of cari said Senator Dole. Ms. Lilibet Hagel p g BOARD of DIRECTORS Carl A. Hammerschlag, M.D. Honorable Mel Levine Hon. Mark Hatfield The Caring Institute's mission is to promote the values of caring, Chair Hon. William D. Hathaway integrity and public service. It was founded in 1985 by Val J. Kathleen M. Brennan Hon. Margaret M. Heckler Halamandaris after a meeting with Mother Teresa of Calcutta. Mother President Hon. D oroth y Herman Teresa said that there was a poverty of the spirit in the developed Gary M. Bremer AJeyis Sandra Hernandez, M.D. world which was much worse than the poverty of the body seen in the Vice Chair Fr. Theodore M. Hesburgh third world and directed Halamandaris to do something about it. Robert L. Byers Ms. Frances Hesselbein Halamandaris put in place an awards program and a system for Diane Deacon Mr. Lloyd Hill identifying people who give back to society in extraordinary ways Glenn Kielty Mr. David Horowitz and holding hem u as role models to be identified b others. The Mr. Jon M. Huntsman g p y Rodney D. Windley Mr. Kevin Johnson Caring Institute is a non profit 501(c)(3) charitable organization. Val J. Halamandaris Hon. J. Bennett Johnston Founder and Executive Director more- 228 Seventh Street, SE Washington, DC 20003 phone 2021547 -4273 fax 2021547 -4510 www.caring.org 2008 National Caring Award Winners C March 19, 2008 Page 2 The 2008 Annual Caring Award winners include: Dick Grace Founder, Grace Family Vineyards St. Helena, CA Dick Grace left behind a successful career as a stockbroker 30 years ago to establish Grace Family Vineyards. His goal was not retirement or a life of ease, but entrepreneurial philanthropy. His high- quality wines sell for $25041,000 a bottle one went for $100,000 at auction. Grace has to date donated more than $25 million in profits, which have been used to help ill, abused, or homeless people the world over. Grace has built schools and hospitals, as well as made countless personal visits to the people he assists. "My wine," he says, "is a vehicle for what I want to do with my life. My task is to raise consciousness to help my fellow man." Sister Adele O'Sullivan, MD Medical Director, Health Care for the Homeless Phoenix, AZ Adele O'Sullivan's dream of serving God by helping humanity led her to join the Order of Carondelet 31 years ago and fired her subsequent decision to become a doctor. Today, the lady known as the "Mother Teresa of Phoenix" runs the non profit Health Care for the Homeless. Her organization has a clean, well- equipped clinic and medical vans staffed by professionals which seek out the needy in the community. In order to help still more, she has founded another nonprofit called Circle the City. "It gives me life," she explains, "to watch someone who's suffering and make it better." Greg Porter Founder of God's Katrina Kitchen Gulfport, MS Greg Porter took the devastation of Hurricane Katrina personally. He moved to the Mississippi Gulf, set up a huge tent, and founded God's Katrina Kitchen. Then he began to feed the homeless and hungry, preparing more than 3,000 meals a day. For over two years, he rarely saw his family. Working day and night, he persuaded churches from 22 religious denominations to donate truck loads of food, recruited over 13,000 volunteers, served thousands of meals and helped build hundreds of homes for the homeless. "This wasn't my vision," he explains, "God grew it." Rev. Cecil Williams Founder, Glide Memorial Methodist Church San Francisco, CA Reverend Cecil Williams became pastor of Glide Memorial Church in San Francisco's Tenderloin District in 1963. Parishioners were few because they feared going through the throngs of drug addicts, prostitutes, winos, homeless, and sick people who lined the streets. Reverend Williams did what Jesus would have done bring everyone inside. He made it clear that everyone was equal in God's eyes. He raised funds and created more than 80 programs ranging from housing to health care, from meals to education tailored to meet the physical, mental, and spiritual needs of each -more- C 2008 National Carin g Award Winners March 19, 2008 Page 3 of the thousands of people who have crossed his threshold. "Everyone can come here," he says, "Everybody is our kind. That's the church it seems to me." John Wooden Former Coach, UCLA Bruins Los Angeles, CA John Wooden is well known as the coach of the UCLA basketball team who won an unimaginable 10 national titles. Some years he did this with great talent and other years with average talent. The secret to his success, he explains, is that he lived his life according to the Golden Rule, and he inspired even insisted that those who played for him do the same. In short, he took caring to a high art. It was not something he had to think about consciously; it was just part of who he was. His instruction to his teams was only minimally about basketball. In the main, it was about how to succeed as a human being and score in the game of life. "You should never try to be better than anyone else," he says. "You should keep learning from others, and you should always try to be the best you can be." The 2008 Annual Caring Award Young Adult winners include: Jami Harper Founder, H2Owood Squares Age 19 Grand Island, NE Jami is an environmental activist who makes her cause fun. "I like to find things people can relate to," she says, "because it helps them think in a different light." She's urged children to save resources in a book based on the board game Candy Land. Teens may think twice about lighting up if they play her educational game on smoking's harmful effects. And we all might worry more about clean water after joining in H2Owood Squares, based on the show Hollywood Squares. Jami invented the game after hearing about tainted water in her community, and she's presented it at hundreds of schools. H2Owood Squares, as she explains, teaches us how to protect our water. "If just one water supply is spared from contamination because of my activity, I would consider it a success." Alexandra Holderman Founder, Baby Bundles Age 14 Mishawaka, IN Alexandra goes shopping every year for lots of babies. She's too young to have her own kids, but not too young to think "you should share your blessings." That's a lesson she learned from her mom, and she's acted on it since age five. In the past nine years, she's assembled over 2,000 "baby bundles" for teenage mothers in need. The bundles contain all the clothes and blankets she can afford using her own allowance and support from businesses in her community. There's no question store managers like her fundraising letters and sense her inner drive. Despite her age, -more- 2008 National Caring ward Winners March 19, 2008 g Page 4 Alexandra already knows the meaning of life. "God puts each of us on earth for a purpose," she says, "and after you fulfill it he sends you home." Dallas Jessup Founder, Just Yell Fire Age 16 Vancouver, WA Dallas has a hard punch and a soft heart. You can see both in her free self defense video "Just Yell Fire." She decided to make it after hearing about the abduction and death of a young Florida girl. Dallas knew she could help girls like this one since she has a black belt in Tae Kwon Do. Drawing on her martial arts skills, she created a simple self defense strategy, wrote a script, and raised $500,000. The result was a major production that's been seen online by 2 million viewers in 37 countries, including Iraq. Many American girls get to learn about self defense from Dallas herself because she speaks often at schools and youth clubs. "You can't change everything," Dallas knows, "but you can change the one thing that is really on your heart." Ashlee Kephart Founder, Kids for a Better World Age 16 Brooklyn Center, MN Ashlee has a special way of remembering those in need. As founder of Kids for a Better World, she donates books, household items, and shoes to thousands of people in Africa and the U.S. Many are orphans and disaster victims, who find comfort in her "caring bags" full of socks, snacks, toiletries, and cards saying, "I CARE ABOUT YOU." Ashlee does all this because she knows, "Caring means identifying with someone you've never met." She brings this same empathy to her recent book about coping with her father's death. A Special Way of Remembering speaks to children who've lost a parent with this simple but moving advice: "We shouldn't forget somebody important in our lives. Think about those people and, while you are remembering, do what you love to do." Vasanth Kuppuswamy Founder, Tamil Nadu India School Fund Age 18 Charleston, SC Vasanth inspires Indian children to learn. He's been teaching them English since he was 12 and raising money for them since he was 14. As founder of the Tamil Nadu India School Fund, he has collected over $60,000 for schools in the rural village where his father grew up. Thanks to Vasanth, students who once sat on cement floors now have benches and desks. He's also given them a science lab, athletic fields, and a water filtration system. Much of this became possible thanks to his generous supporters, many of them young American students. While Vasanth appreciates their donations, he reminds them that philanthropy is not just fundraising. So find a way to give of yourself, he says. "Any teen can put their mind to something and make a difference." -more- C 2008 National Caring Award Winners March 19, 2008 Qwh Page 5 The Carin Institute o erates a museum the Hall of Fame for Carin Americans located in Caring p g was the first Washington, DC, home of the human rights advocate Frederick Douglass. Caring Award winners are inducted into this Hall of Fame, located three blocks east of the U.S. Capitol, at 320 A Street, NE, Washington, DC. i f item N Ci� Cou�el City of Brooklyn Center A Millennium Community TO: Mayor and Councilmembers FROM: Curt Boganey, City Manage DATE: April 23, 2008 SUBJECT: Resolution accepting the executive summary from Donald Salverda and Associates from the City of Brooklyn Center City Council and Department Heads 2008 Leadership Planning Team Building Retreat and adopting a Mission Statement, Values Statement and Goals Program Recommendation: It is recommended that the City Council consider adoption of the subject resolution. Background: On February 6 2008 the City Council and Department Heads met in a full day Y tY p Leadership- Planning -Team Building Retreat at the Earle Brown Heritage Center. The retreat was a follow up to the January 2007 retreat. The facilitator was Don Salverda and Associates of Roseville, Minnesota. Having eviewed the draft document at the Council worksession April 14 2008 g p consensus was reached that the information presented with a few minor corrections accurately reflects the actions taken during the subject retreat. Furthermore the majority consensus of the Council was to present the Mission Statement, Values Statement and Goals Program for approval consideration and adoption at the next regular City Council meeting. Fiscal Issues: The adoption of this resolution will have no immediate fiscal consequences. It is fair to say that the implementation of the necessary strategies will have budgetary implications in the future. C: Vickie Scheleumng retreat.042808. memorandum.docx 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 w ww. cityo f b rooklyncenter•. org Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ACCEPTING THE EXECUTIVE SUMMARY FROM DONALD SALVERDA AND ASSOCIATES FROM THE CITY OF BROOKLYN CENTER CITY COUNCIL AND DEPARTMENT HEADS 2008 LEADERSHIP PLANNING AND TEAM BUILDING RETREAT AND ADOPTING A MISSION STATEMENT, VALUES STATEMENT, AND GOALS PROGRAM WHEREAS, the Brooklyn Center City Council and department heads met on February 16, 2008, in a leadership planning and team building retreat facilitated by Mr. Donald Salverda; and WHEREAS, the City Council after receiving input from the management team has agreed upon the establishment of a City Mission Statement, Statement of Values, and 2008 Goals Program; and WHEREAS, these statements of City Policy shall serve as a guide and direction to the City Manager and his staff as they conduct the business of the City; and WHEREAS, the City Council commits itself to the adherence to these statements and all reasonable efforts in 2008 and beyond toward the achievement of these goals. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the executive summary from the February 16, 2008, Leadership Planning and Team Building Retreat is accepted and the Mission Statement, Values Statement, and 2008 Goals are officially approved and adopted. April 28. 2008 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Attachment H THE CITY'S MISSION STATEMENT "The mission of the City of Brooklyn Center is to ensure a clean, safe, attractive community that enhances the quality of life and preserves the public trust. i 32 Attachment H (continued) THE CITY'S VALUES STATEMENT 1) Excellence and Quality in the Service Deliverer We believe that service to the public is our reason for being and strive to deliver quality services in a highly professional and cost effective manner. 2) Ethics and Integrity We believe that ethics and integrity are foundation blocks of public trust and confidence and that all meaningful relationships are built on these values. 3) Visionary Leadership and Planninq We believe that the very essence of leadership is to be visionary and to plan for the future. !4) Fiscal Responsibility We believe that fiscal responsibility and prudent stewardship of public funds is essential for citizen confidence in government. 5) C000eration and Teamwork We believe that the public is best served when departments and employees work cooperatively as a team rather than at cross purposes. 6) Ooen and Honest Communication We believe that open and honest communication is essential for an informed and involved citizenry and to foster a positive working environment for employees. 7) Professionalism We believe that continuous improvement is the mark of professionalism and are committed to applying this principle to the services we offer and the development of our employees. 33 Attachment E (continued) PROPOSED STRATEGIC GOALS 2008 2010 HIGHEST PRIORITY GOAL 1 TO ENSURE A SAFE AND SECURE COMMUNITY GOAL 2 TO AGGRESSIVELY PROCEED WITH THE CITY'S REDEVELOPMENT PLANS j GOAL #3 TO POSITIVELY ADDRESS THE CITY'S CHANGING DEMOGRAHICS AND INCREASED CULTURAL DIVERSITY GOAL #4 TO CONTINUE TO MAINTAIN AND UPGRADE THE CITY'S INFRASTRUCTURE GOAL #5 TO IMPROVE THE ENFORCEMENT OF CITY CODES HIGH PRIORITY GOAL #6 TO ANTICIPATE AND RESPOND EFFECTIVELY TO ISSUES RELATED TO FORECLOSURES GOAL #7 TO INCREASE COMMUNICATION AND COLLABORATION. WITH CITIZENS; OTHER GOVERNMENT JURISDICTIONS AND AGENCIES, THE SCHOOLS, AND CHURCHES GOAL #8 TO IMPROVE THE QUALITY AND DIVERSITY OF THE CITY'S HOUSING STOCK GOAL #9 TO RESPOND TO INCREASING SINGLE FAMILY RENTAL PROPERTIES BY PROMOTING MORE HOME OWNERSHIP �T 20 Attachment E PROPOSED GOALS PROGRAM ONGOING GOALS GOAL 1 TO CONTINUE TO PROVIDE QUALITY SERVICES WITH LIMITED RESOURCES GOAL 2 TO ENSURE THE CITY'S FINANCIAL STABILITY GOAL 3 TO MOVE TOWARD MAINTAINING OR LOWERING THE LEVEL OF THE CITY'S PROPERTY TAXES AS COMPARED WITH OTHER CITIES GOAL 4 TO STREAMLINE (WHERE POSSIBLE) AND STRIVE FOR INCREASED EFFECTIVENESS IN PROVIDING SERVICES GOAL 5 TO INCREASE THE CITY'S INFLUENCE AT THE LEGISLATURE GOAL 6 TO IMPROVE THE CITY'S IMAGE WITH CITIZENS AND OUTSIDE OF THE CITY'S BORDERS GOAL 7 TO ENSURE THE CITY'S DRINKING WATER IS OF HIGH QUALITY AND THAT THE CITY'S STORM WATER IS PROPERLY MANAGED. i 19 o1lb City council e A COUNCIL ITEM MEMORANDUM TO: Mayor and City Council FROM: Curt Boganey, City Manager DATE: April 24, 2008 SUBJECT: Resolution establishing the Brooklyn Center Centennial Celebration Steering Committee and appointing Diane Sannes as the Chairperson Recommendation: I recommend that the City Council consider approval /adoption of the subject resolution. Background: The City Council decided in 2007 that a 100 year birthday celebration would serve the interst of the community. In doing so committed 5,000 in the 2008 budget to begin funding for this significant public event. The Council has met in worksession twice to discuss the proposed plan establish a mission and outline the parameters of the Steering committee. Following the formal establishment of the committee and appointment of the chairperson, the first meeting will be set and potential steering committee members will be invited to attend an initial planning session. Budget Issues: This Council has established a budget for the activity. 042808.centennial.council item memorandum.doc Member introduced the following resolution and moved i its adoption: RESOLUTION NO. RESOLUTION ESTABLISHING THE BROOKLYN CENTER CENTENNIAL CELBRATION COMMITTEE AND APPOINTING CHAIRPERSON WHEREAS, the Village of Brooklyn Center was incorporated in February 1911; and WHEREAS, the community has continued to grow and prosper throughout the years of development; and WHEREAS, the City will be 100 years old as a corporate body in February 2011; and WHEREAS, it is only fitting and right that the residents, businesses, citizens and friends of Brooklyn Center rejoice and celebrate this momentous occasion; and WHEREAS, this is a great opportunity to bring future generations of the community together and build on the legacy of this proud community, WHEREAS, Mayor Willson has appointed Diane Sannes as Chairperson of the i Committee and shall serve at the pleasure of the Mayor. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that we establish the Brooklyn Center Centennial Celebration Committee, to provide overall planning and coordination of the Centennial Celebration Activities and confirm the appointment of Diane Sannes as Chairperson of this committee. April 28. 2008 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. i Centennial Project Outline updated April 14, 2008 Brooklyn Center Centennial Celebration Mission: It is the mission of the Centennial Celebration Committee to collaboratively share and celebrate the past 100 year history of Brooklyn Center, and to inspire continued greatness and distinction for the second century. Committee Goals and Guiding Principles: In support of the mission, members of the Centennial Celebration Steering Committee will: Coordinate the overall planning of Centennial activities Establish sub committees to carry out the work of the Centennial Committee Develop a budget and fundraising activities for Centennial events and activities Facilitate communication with the citizens, businesses, institutions and community organizations regarding Centennial events Encourage all citizens, businesses, institutions and community organizations to incorporate Centennial events into existing activities during the celebration period; Recognize citizens, businesses, organizations, and institutions that embody Centennial spirit and develop and incorporate Centennial events and activities Provide opportunities for the entire community to participate in and benefit from the programs and activities offered throughout the Centennial celebration; Provide recognition to the contributions of citizens, businesses, institutions and community organizations who develop Centennial events and activities Provide opportunities for the entire community to participate in and benefit from the programs and activities offered throughout the Centennial year Honor and recognize citizens, businesses, institutions and community organizations in the community that have supported and shaped the development of Brooklyn Center in its first century Coordinate with annual city celebration committee and other committees that manage city events. Le. Earle Browne Days, National Night Out, etc. Centennial Project Outline: 1. Initiate Centennial Celebration Project Establish Committee (Apri12008) Page 1 of 3 Potential Representatives Historical Society, Businesses, Residents, Faith Community, Schools, Community organizations, other Government Agencies (ex. Government Center, Library), At -Large City Council Liaison City Staff Representative Kickoff Letter to invite committee members (April 2008) Establish meeting times Kickoff Meeting (May 2008) Appoint Chair 2. Planning Refine Mission and Goals Determine Scope of Celebration Length (whole year, month, day, etc.) Determine Budget Establish Subcommittee(s) and Chair(s) is Clear definition of scope, resources, responsibilities, and plans Fundraising- Determine funding sources and methods of soliciting from potential contributors (residents, businesses, acquire sponsors, etc.) Events- add new, expand current events, ideas, etc. Marketing /Publicity- logo, advertising, website, merchandise, etc. 3. Implementation Operate Events- Project plan, Event Chair Thank you letters volunteers, sponsors, contributors, etc. 4. Assessment of Celebration and Events Follow up meeting Subcommittee reports Final analysis Celebrate Committee successes Page 2 of 3 A Few Examples of Celebration Events and Activities Coloring contest Time capsule Book reading quilt theme (quilt book coloring contest), collaborative library, schools kids fest Develop historical timeline Historical Society Historical tour- EBHC, other Articles Newspaper photos of past Heritage celebration look at past barbershop quartet, steam engine, car show, silent movies, Victorian high two photograph exhibit Photo Album Plant 100 roses 100 trees for 100 years planting 1 5L tree celebration w /Arbor Day 100 Reasons Project Giving to our parks— donations Named benches ($1,000), Arbor (20x40 $50,000) smaller ones available, paver bricks, etc. Est. costs, prefer low maintenance Host an event Your stories City Hall Open House Boys girls club annual auction dinner Wall mural painting —100 national artists Art on Square existing Community fair Sports and casino event 100 years of religion bells ring across city 60 faith communities celebrate Golf tournament Youth parade happy b -day, goody bag Mayor State of City Address Winterfest Auto show Centennial parade of lights —100 lighted floats Fireworks (est. $12,000- $15, 000) Page 3 of 3 I City C oun,il Agend Item N 11c COUNCIL ITEM MEMORANDUM e p: Curt Boganey, City Manager FROM: Gary Eitel, Community Development Director DATE: April 23, 2008 SUBJECT: Resolution Accepting Quotation and Awarding a Contract, Improvement Project No. 2008 14 Contract 2008 -H 2008 Diseased Tree Removal Recommendation: Community Development staff recommends that the Brooklyn Center City Council accept the lowest quotation and award a contract to Arbor Design Tree Service, Inc. for Improvement Project No. 2008 -14 Contract 2008 -H 2008 Diseased Tree Removal Background: The City of Brooklyn Center has administered a Diseased Tree Removal program since 1974 and annually establishes a project to expedite the removal of diseased and other nuisance trees as defined in City Ordinance Chapter 20. When a diseased tree is marked on the boulevard, the city shares in half the cost of the removal provided the removal is conducted under the City's annual Diseased Tree Removal contract. The property owner is 1 6 voiced for approximately half the cost of the removal. When a diseased tree is marked on private property the property owner is responsible for the removal and disposal of the tree. City staff informs property owners of the importance of removing diseased trees to minimize the propagation of tree diseased to adjacent properties. If a property owner fails to remove a diseased tree, the City acquires a quotation from the contractor for the cost of removal. The quotation is presented to the property owner prior to proceeding with removal of the diseased tree. Unpaid charges for tree removal are levied as a special assessment against the respective parcels of land. Special assessments are levied over a period of five years: The five year payment program assists many property owners with financing tree removal costs. The tree removal quantities listed on the quotation form are based on the number of diseased trees removed by the City's tree removal contractor in 2007. The City's tree inspecto r anticipates that there will be minimal increases in the number of diseased trees that will be marked for removal in 2008. Budget Issues: The City's share of the cost of removal for diseased trees within the public right -of -way and City property is included in the 2008 Budget under the Public Works Forestry operating budget. 2008 Disease Tree Removal Resolution Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ACCEPTING QUOTATION AND AWARDING A CONTRACT, IMPROVEMENT PROJECT NO. 2008 -14 CONTRACT 2008 -H 2008 DISEASED TREE REMOVAL WHEREAS, staff solicited quotations from five qualified tree removal contractors and the following quotations were received and opened on April 15, 2008 for Improvement Project No. 2008 -14 Contract 2008 -H 2008 Diseased Tree Removal. Bidder Bid Amount Arbor Design Tree Service Inc. $44,566.00 'S S Tree Horticultural Specialists, Inc. $46,590.00 WHEREAS, it appears that Arbor Design Tree Service, Inc. is the lowest responsible bidder for Improvement Project No. 2008 -14 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the City Manager is hereby authorized to enter into a contract with Arbor Design Tree Service, Inc. in the name of the City of Brooklyn Center for Improvement Project No. 2008 -14 2008 Diseased Tree Removal according to the plans and specifications on file in the office of the Director of Public Works. April 28. 2008 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. CONTRACT 2008 -H DISEASED TREE REMOVAL IMPROVEMENT PROJECT NO. 2008 -14 BOULEVARD AND PARK TREES ITEM TREE EST. UNIT UNIT AMOUNT NO. ITEM DIAMETER QTY. PRICE 1 Mobilization 1 LS (not to exceed $3,000) 4 Tree Stump Removal Over 12" 15" 1 Tree 361 .00 361 .00 5 Tree Stump Removal Over 15" 18" 5 Tree 390.00 19 5 0.0 0 522.00 3132.00 6 Tree Stump Removal Over 18" 21" 6 Tree 579.00 3474.00 7 Tree Stump Removal Over 21 24" 6 Tree 607.00 4856.00 8 Tree Stump Removal Over 24" 27" 8 Tree 9 Tree Stump Removal Over 27" 30" 12 Tree 790.00 9 4 8 0.0 0 10 Tree Stump Removal Over 30" 33" 7 Tree 953.00 6 6 71 .0 0 11 Tree Stump Removal Over 33" 36" 5 Tree 1300.00 6 5 0 0.0 0 12 Tree Stump Removal Over 36" 39" 2 Tree 1547.00 3 0 9 4.0 0 13 Tree Stump Removal Over 39" 42" 1 Tree 2356.00 2 3 5 6.0 0 14 Tree Stump Removal Over 42" 1 Tree 2 6 9.2.0 0 2692.00 TOTAL 4,566.00 NOTE: A FIXED AMOUNT OF 30% OF THE BASIC UNIT PRICE BID SHALL BE PAID BY THE OWNER IN THOSE INSTANCES WHERE STUMP REMOVAL ONLY IS PERFORMED AS PROVIDED IN THE SPECIAL PROVISIONS, ARTICLE 6. Q -2 (2008 -H) City co"IC17, Agenda Item N 11d COUNCIL ITEM MEMORANDUM TO: Curt Boganey, City Manager FROM: Todd Blomstrom, Director of Public Works DATE: April 21, 2008 SUBJECT: Resolution Establishing Parking Restrictions on Xerxes Avenue North, 55 Avenue North and 56 Avenue North Recommendation: Public Works staff recommends that the Brooklyn Center City Council adopt the attached resolution establishing parking restrictions along Xerxes Avenue, 55 Avenue and 56 Avenue in accordance with Municipal State Aid requirements. Background: The City recently obtained plan approval for the street improvements proposed within the Xerxes Avenue and Northway Drive project. This approval process allows the City to expend municipal state aid funding to offset a portion of the construction costs for municipal state aid routes. Xerxes Avenue, 55 Avenue and 56 Avenue are municipal state aid routes. The municipal state aid approval process includes certain standards for street widths and on- street parking. The state aid routes listed above are 52 -feet wide, which allows for four travel lanes along these streets. This street width is not sufficient to allow on- street parking in addition to the four travel lanes based on state aid design standards. Parking along these streets is currently prohibited. The proposed resolution would officially establish a No- Parking Zone on both sides of the street. This action is required to address the last remaining condition of plan approval from Mn/DOT. Budget Issues: Routine replacement of the existing No- Parking signs was previously included in the project cost estimates for the street improvement project. No additional budget issues are involved with officially adopting the current parking restrictions. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ESTABLISHING PARKING RESTRICTIONS ON XERXES AVENUE NORTH, 55 AVENUE NORTH AND 56 AVENUE NORTH WHEREAS, the City has planned the improvement of Xerxes of Brooklyn Center p tY Yn p Avenue North, 55 Avenue North and 56 Avenue North within the City of Brooklyn Center, Minnesota; and WHEREAS, the City of Brooklyn Center will be expending Municipal Street Aid Funds on the improvements of said streets and WHEREAS, the proposed street improvements do not provide adequate width for parking on both sides of the street; and WHEREAS, approval of the planned construction improvements as a Municipal State Aid Street project must therefore be conditioned upon certain parking restrictions. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the City shall ban the parking of motor vehicles at all times along the following street segments: 1. Xerxes Avenue North (SAP 109 110 -010) from State Trunk Highway 100 to Northway Drive 2. 55 Avenue North from Xerxes Avenue North to County State Aid Highway 152 i 3. 56 Avenue North from Xerxes Avenue North to County State Aid Highway 152 April 28. 2008 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. it Agen Item No lie City Counc I City of Brooklyn Center City Council Agenda Item Memorandum TO: Curt Boganey, City Manager FROM: Daniel Jordet, Director of Fiscal Support Services DATE: 22 April 2008 SUBJECT: Sale of Taxable Tax Increment Bonds Recommendation: It is recommended that the City Council adopt the resolution awarding sale of 4,335,000 of Taxable General Obligation Tax Increment Bonds, Series 2008A. Background: On Monday, 14 April 2008 the City Council authorized the sale of Tax Increment Bonds for economic and community development purposes. At that time it was expected that the bonds would be sold on 12 May 2008. However, in order to complete the bond sale transaction and obtain the funds at closing prior to the expiration of the 13 year deadline on 15 May 2008 it was necessary to move the sale of the bonds forward by two weeks. On 15 May 2008 the City will have approximately 3,335,000 in unspent Tax Increment dollars in its TIF District 3 fund. After 15 May 2008 no additional direct project costs may be paid from cash in the TIF District 3 fund. In order to use that cash already collected in TIF District 3 the City may sell bonds before the 15 May 2008 date. The proceeds from that debt may be used to make direct project cost payments. Cash remaining in the TIF District 3 fund would then be used to repay debt obligations. In addition, the increment projections for the life of the district produce enough revenue to allow the issuance of an additional 1,000,000 in proceeds for TIF eligible expenses. The combination of the 3,335,000 current available cash and the 1,000,000 in future increment revenues allows for the issuance of 4,335,000 in bonds. This is similar to the program followed when 17,245,000 of TIF Bonds was issued at the end of 2004. i Two projects, the Xerxes Avenue reconstruction project and the Brookdale Ford demolition and cleanup project are depending on TIF District 3 funds to complete work already started. The total draw for these two projects will be about 1,200,000. The remaining bond proceeds of 3,135,000 would have to be used within three years for TIF eligible expenditures within TIF District 3. These uses would include projects similar to the property acquisitions of the past three years that have facilitated projects like the GSA agreement for the FBI building and the underground stormwater treatment structures near the Regal Theater complex. The bond repayments are structured so that the cash on hand at 15 May 2008 would be used to make the first two years of payments on the bonds and pay down the indebtedness quickly. This would reduce interest costs. 77% of the bonds would be paid off within the first two years. The remaining 1,000,000 debt would be paid over an eight year period with increment revenues generated during those years. The City Manager and Director of Fiscal Support Services have been interviewed by Moody's Investor's Service about the City's bond rating. At this writing the City's rating is under consideration by Moody's. It is expected that the Al rating currently in place will be confirmed and that the City's bonds will continue as investment grade bonds. Bids for the bonds will be received on Monday, 28 April 2008. When bids are compiled a recommendation will be developed such that the blanks on the attached resolution may be completed and the final resolution presented. Until then, the resolution is attached in substantially completed form for Council review prior to Monday evening's meeting. Financial Impact: While stretching the timeframe for use of the existing 3,335,000 of tax increment cash, the bonds will also allow the expenditure of an additional 1,000,000 for development projects. The funds provided by the bond proceeds must be spent within a 3 year window commencing from the date of settlement (receipt of the cash proceeds) or be applied to repayment of the outstanding bonds. Total principal and interest payments anticipated for this issue will be 4,770,173. i $4,335,000 City of Brooklyn Center, Minnesota Taxable General Obligation Tax Increment Bonds, Series 2008 DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P +I 105% Levy 02/01/2009 1,670,000.00 3.500% 110,849.17 1,780,849.17 1,869,891.63 02/01/2010 1,665,000.00 3.700% 107,823.76 1,772,823.76 1,861,464.95 02/01/2011 125,000.00 3.950% 46,218.76 171,218.76 179,779.70 02/01/2012 125,000.00 4.225% 41,281.26 166,281.26 174,595.32 02/0112013 125,000.00 4.400% 36,000.00 161,000.00 169,050.00 02/01/2014 125,000.00 4.600% 30,500.00 155,500.00 163,275.00 02/01/2015 125,000.00 4.800% 24,750.00 149,750.00 157,237.50 02101/2016 125,000.00 4.900% 18,750.00 143,750.00 150,937.50 02/01/2017 125,000.00 5.000% 12,625.00 137,625,00 144,506.25 02/0112018 125,000.00 5.100% 6,375.00 131,375.00 137,943.75 Total $4,335,000.00 $435,172.95 $4,770,172.95 $5,008,681.60 SIGNIFICANT DATES Dated................................................................................................................................................. 6/01/2008 DeliveryDate 6/01/2008 FirstCoupon Date 2/01/2009 Yield Statistics BondYear Dollars $10,055.00 AverageLife. 2.319 Years AverageCoupon .................:.........I... 4.3279259% NetInterest Cost NIC) 4.6728289% TrueInterest Cost (TIC). 4.6685146% Bond Yield for Arbitrage Purposes 4.2843004% AllInclusive Cost AIC) 51265983% IRS Form 8038 NetInterest Cost 4.3279259% WeightedAverage Maturity 2.319 Years Interest rates are estimates. Changes in rates may cause significant alterations to this schedule. The actual underwriter's discount bid may also vary. T"abl,• GO 77P Sefies 20 J SINGLE NWO& I/ 712008 4:05 PAtif .Springsted Page 6 Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ACCEPTING OFFER ON SALE OF $4,335,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2008A, AND PLEDGING TAX INCREMENTS FOR THE SECURITY THEREOF A. WHEREAS, the Brooklyn Center Economic Development Authority (the "Authority has heretofore established the Housing Development and Redevelopment Project No. 1 (the "Redevelopment Project Area and has adopted a Modified Redevelopment Plan therefor (the "Redevelopment Plan") in accordance with Minnesota Statutes, Section 469.090 to 469.1082, both inclusive, which Redevelopment Plan authorizes certain expenditures within the Redevelopment Project Area to promote development in the City of Brooklyn Center, Minnesota (the "City and enhance the City's tax base; and B. WHEREAS, the Authority has heretofore created Tax Increment Financing District No. 3 (the "Tax Increment District within the Redevelopment Project Area and adopted a tax increment financing plan therefor (as modified, the "TIF Plan") pursuant to the provisions of Minnesota Statutes, Section 469.174 to 469.1799; and C. WHEREAS, pursuant to the provisions of the Redevelopment Plan and TIF Plan, funds are to be expended within the Redevelopment Project Area to provide money to i finance certain public redevelopment costs including the acquisition, demolition, clearance and site preparation in target redevelopment areas within the City (the "Project and D. WHEREAS, the City has retained Springsted Incorporated "Springsted Incorporated an independent financial consultant in connection with the issuance of the Bonds, and is therefore authorized to negotiate the sale of the Bonds without complying with the public sale requirements of Minnesota Statutes, Chapter 475; and E. WHEREAS, the City has heretofore determined and declared that it is necessary and expedient to issue $4,335,000 Taxable General Obligation Tax Increment Bonds, Series 2008A of the City, pursuant to Minnesota Statutes, Chapter 475, to finance the Project; and F. WHEREAS, the following offers were received, opened and recorded at the offices of Springsted Incorporated at 10:30 A.M., this same day: Bidder Interest Rate Net Interest Cost NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, as follows: 1. Accebtance of Offer. The offer of (the "Purchaser to purchase $4,335,000 Taxable General Obligation Tax Increment Bonds, Series 2008A of the City (the "Bonds or individually a "Bond at the rates of interest hereinafter set forth, and to pay therefor the sum of plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable offer received and is hereby accepted, and the Bonds are hereby awarded to said purchaser. The Finance Director is directed to retain the deposit of said purchaser and to forthwith return to the others making offers their good faith checks or drafts. 2. Terms of Bonds. (a) Title: Oriainal Issue Date: Denominations. Maturities: Term Bond Option. The Bonds shall be titled "Taxable General Obligation Tax Increment Bonds, Series 2008A shall be dated May 1, 2008, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shall be numbered from R -1 upward in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on February 1 in the years and amounts as follows: Year Amount 2009 $1,670,000 2010 1,665,000 2011 125,000 2012 125,000 2013 125,000 2014 125,000 2015 125,000 2016 125,000 2017 125,000 2018 125,000 As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory sinking fund redemption and final maturity amounts conforming to the foregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). (b) Book Entry Onlv Svstem. The Depository Trust Company, a limited purpose trust Company organized under the laws of the State of New York or any of its successors or its successors to its functions hereunder (the 'Depository will act as securities depository for the Bonds, and to this end: (i) The Bonds shall be initially issued and, so long as they remain in book entry form only (the 'Book Entry Only Period shall at all times be in the form of a separate single fully registered Bond for each maturity of the Bonds; and for purposes of complying with this requirement under paragraphs 5 (with respect to redemption) and 10 (with respect to registration, transfer and exchange), Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry Only Period to the outstanding principal amount of that Bond. (ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register maintained by the U.S. Bank National Association in Saint Paul, Minnesota (the "Bond Registrar in the name of CEDE CO., as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee (iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any responsibility or obligation to any broker, dealer, bank, or any other financial institution for which the Depository holds Bonds as securities depository sitor the p ry p, Y( "Participant") r the r for which a Participant Part o e e son ant holds an interest in the Bonds shown p P p on the books and records of the Participant (the "Beneficial Owner Without limiting the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the principal of or premium, if any, or interest on the Bonds, or (D) the consent given or other action taken by the Depository as the Register Holder of any Bonds (the "Holder For purposes of securing the vote or consent of any Holder under this Resolution, the City may, however, rely upon an omnibus proxy under which the Depositoryassigns its consenting or voting rights to certain Participants to whose accounts the Bonds are credited on the record date identified in a listing attached to the omnibus proxy. (iv) The City and the Bond Registrar may treat as and deem the Depository to be the absolute owner of the Bonds for the purpose of payment of the principal of and premium, if any, and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to the Bonds, for the purpose of obtaining any consent or other action to be taken by Holders for the purpose of registering transfers with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to or upon the Holder of the Holders of the Bonds as shown on the register, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. (v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new Nominee in place of the existing Nominee, and subject to the transfer provisions in paragraph 10 hereof (with respect to registration, transfer and exchange), references to the Nominee hereunder shall refer to such new Nominee. (vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively,, by the Bond Registrar or City, as the case may be, to the Depository as provided in the Letter of Representations to the Depository required by the Depository as a condition to its acting as book -entry Depository for the Bonds (said Letter of Representations, together with any replacement thereof or amendment or substitute thereto, including any standard procedures or policies referenced therein or applicable thereto respecting the procedures and other matters relating to the Depository's role as book -entry Depository for the Bonds, collectively hereinafter referred to as the "Letter of Representations (vii) All transfers of beneficial ownership interests in each Bond issued in book entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depository with the Participants for recording and transferring the ownership of beneficial interests in such Bonds. (viii) In connection with any notice or other communication to be provided to the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any consent or other action to be taken by Holders, the Depository shall consider the date of receipt of notice requesting such consent or other action as the record date for such consent or other action; provided, that the City or the Bond Registrar may establish a special record date for such consent or other action. The City or the Bond Registrar shall, to the extent possible, give the Depository notice of such special record date not less than 15 calendar days in advance of such special record date to the extent possible. (ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any paying agency registrar agreement, shall agree to take any actions necessary from time to time to comply with the requirements of the Letter of Representations. (x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of surrendering the Bonds for a Bond of a lesser denomination as provided in paragraph 5 hereof (with respect to redemption), make a notation of the reduction in principal amount on the panel provided on the Bond stating the amount so redeemed. (c) Termination of Book -Entry Only Svstem. Discontinuance of a particular Depository's services and termination of the book -entry only system may be effected as follows: (i) The Depository may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the City and discharging its responsibilities with respect thereto under applicable law. The City may terminate the services of the Depository with respect to the Bond if it determines that the Depository is no longer able to carry out its functions as securities depository or the continuation of the system of book -entry transfers through the Depository is not in the best interests 'of the City or the Beneficial Owners. (ii) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository can be found which, in the opinion of the City, is willing and able to assume such functions upon reasonable or customary terms, or if the City determines that it is in the best interests of the City or the Beneficial Owners of the Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered in the bond register in the name of the Nominee, but may be registered in whatever name or names the Holder of the Bonds shall designate at that time, in accordance with paragraph 10 hereof (with respect to registration, transfer and exchange). To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with paragraph 10 hereof (with respect to registration, transfer and exchange), the Bonds will be delivered to the Beneficial Owners. (iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph 10 hereof (with respect to registration, transfer and exchange). (d) Letter of Representations. The provisions in the Letter of Representations are incorporated herein by reference and made a part of the resolution, and if and to the extent any such provisions are inconsistent with the other provisions of this resolution, the provisions in the Letter of Representations shall control. 3. Pumose. The Bonds shall provide funds to finance the acquisition, demolition, clearance and site preparation in target redevelopment areas within the City (the "Project Pursuant to a Tax Increment Pledge Agreement (as hereinafter defined) certain tax increments derived from Tax Increment District No. 3 (the "Tax Increments will be applied to the payment of the Bonds and interest thereon. A form of the Tax Increment Pledge Agreement between the City and the Authority (the "Tax Increment Pledge Agreement providing for the pledge by the Authority of certain Tax Increments derived from Tax Increment District No. 3 to the payment of the Bonds (the "Pledged Tax Increments has been presented to the City Council at this meeting and is hereby approved in substantially the form presented. The estimated amount of Pledged Tax Increments hereof exceeds 20% of the cost of the Project. The total cost of the Project, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. 4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date commencing February 1, 2009 calculated on the basis of a 360 -day year of twelve 30 -day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Interest Year Rate 0 2009 /o 2010 2011 2012 2013 2014 2015 2016 2017 2018 5. Redemption. All Bonds maturing in the years 2017 and 2018 be subject to redemption and prepayment at the option of the City on February 1, 2016, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the City shall determine the maturities and principal amounts within each maturity to be prepaid; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen in a random manner by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select in a random manner, using such method of selection as it shall deem proper in its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the holder thereof or his, her or its attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 6. Bond Registrar. U.S. Bank National Association in Saint Paul, Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the 'Bond Registrar and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this resolution (with respect to interest payment and record date). 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in i substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA HENNEPIN COUNTY CITY OF BROOKLYN CENTER R- TAXABLE GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 2008A INTEREST MATURITY DATE OF RATE DATE ORIGINAL ISSUE CUSIP May 1, 2008 REGISTERED OWNER: CEDE CO. PRINCIPAL AMOUNT: DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Brooklyn Center, Hennepin County, Minnesota (the "Issuer certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, unless called for earlier redemption, the principal amount specified above on the maturity ates specified above and to interest thereon semiannually Y p pay Y on February 1 and August 1 of each year (each, an "Interest Payment Date commencing February 1, 2009 at the rate per annum specified above (calculated on the basis of a 360 -day year of twelve 30 -day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of U.S. Bank National Association in Saint Paul, Minnesota (the "Bond Registrar acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. So long as this Bond is registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter described, and as those terms are defined therein, payment of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations, as defined in the Resolution, and surrender of this Bond shall not be required for payment of the redemption price upon a partial redemption of this Bond. Until termination of the book -entry only system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its Nominee. Redemption. All Bonds of this issue (the "Bonds maturing in the years 2017 and 2018 are subject to redemption and prepayment at the option of the Issuer on February 1, 2016, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the Issuer shall determine the maturities and principal amount within each maturity to be prepaid; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen in a random manner by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected Holder of the Bonds. Selection of Bonds for Redemption: Partial Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select in a random manner, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance: Pumose: General Obligation. This Bond is one of an issue in the total principal amount of $4,335,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council of the Issuer on April 28, 2008 (the "Resolution for the purpose of providing money to finance certain public redevelopment costs set forth in the Brooklyn Center Economic Development Authority's Tax Increment Financing Plan for Tax Increment Financing District No. 3. This Bond is payable out of the Taxable i General Obligation Tax Increment Bonds, Series 2008A Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full i payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations: Exchange: Resolution. The Bonds are issuable solely as fully registered bonds in the denominations of $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an authorized denomination or denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided herein with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution, laws of the State of Minnesota and Charter of the Issuer to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser, does not exceed any constitutional, statutory or Charter limitation of indebtedness. i IN WITNESS WHEREOF, the City of Brooklyn Center, Hennepin County, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and its Manager, the corporate seal having been intentionally omitted as permitted by law. Date of Registration Registrable by: U.S. BANK NATIONAL ASSOCIATION SAINT PAUL, MINNESOTA Payable at: U.S. BANK NATIONAL BOND REGISTRAR'S ASSOCIATION CERTIFICATE OF SAINT PAUL, MINNESOTA AUTHENTICATION This Bond is one of the CITY OF BROOKLYN CENTER, Bonds described in the HENNEPIN COUNTY, Resolution mentioned MINNESOTA Within. U.S. BANK NATIONAL ASSOCIATION /s/ facsimile SAINT PAUL, MINNESOTA Mayor Bond Registrar By /s/ facsimile Authorized Signature Manager i ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM as tenants in common TEN ENT as tenants by the entireties JT TEN as joint tenants with right of survivorship and not as tenants in common UTMA as custodian for (Cust) (Minor) under the Uniform (State) Transfers to Minors Act Additional abbreviations may also be used though not in the above list. i ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad- 15(a)(2). The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) [Use only for Bonds when they are Registered in Book Entry Only System] PREPAYMENT SCHEDULE This Bond has been prepaid in part on the date(s) and in the amount(s) as follows: Date Amount Authorized Signature of Holder 8. Execution. Temporary Bonds. The Bonds shall be printed (or, at the request of the Purchaser, typewritten) shall be executed on behalf of the City by the signatures of its Mayor and Manager and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed (or, at the request of the Purchaser, photocopied) facsimile; and provided further that both of such signatures may be printed (or, at the request of the Purchaser, photocopied) facsimiles and the corporate seal may be omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence of either such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. The City may elect to deliver, in lieu of printed definitive bonds, one or more typewritten temporary bonds in substantially the form set forth above, with such changes as may be necessary to reflect more than one maturity in a single temporary bond. The temporary bonds may be executed with photocopied facsimile signatures of the Mayor and Manager. Such temporary bonds shall, upon the printing of the definitive bonds and the execution thereof, be exchanged therefor and canceled. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue, which date is May 1, 2008. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Reizistration: Transfer; Exchange. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration. (as provided in paragraph 9 with respect to authentication) of, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Bonds may be exchanged for Bonds of any authorized denomination or denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or his, her or its attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. The Clerk is hereby a authorized to negotiate and execute the terms of said agreement. 11. Rights Ubon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment: Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth (15th) day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten (10) days prior to the Special Record Date. 13. Treatment of Registered Owner. The City and Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 12 above with respect to interest payment and record date) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. Deliverv: Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the City Clerk to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby created a special fund to be designated the "Taxable General Obligation Tax Increment Bonds, Series 2008A Fund" (the "Fund to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained in the Fund two (2) separate accounts, to be designated the "Capital Account" and "Debt Service Account respectively. (i) Capital Account. To the Capital Account there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon, and less any amount paid for the Bonds in excess of $4,300,320. From the Capital Account there shall be paid the eligible costs and expenses of the Project, including all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the receipt of Tax Increments. (ii) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (a) all accrued interest received upon delivery of the Bonds; (b) all funds paid for the Bonds in excess of $4,300,320; (c) Pledged Tax Increments received from the Authority pursuant to the Pledge Agreement, to pay the annual principal and interest payments on the Bonds; (d) any collections of all taxes herein or hereafter levied in the event that the Pledged Tax Increments herein pledged to the payment of the principal and interest on the Bonds are insufficient therefore; (e) all funds remaining in the Capital Account after payment of the costs of the Project; (f) all investment earnings on funds held in the Debt Service Account; and (g) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. 16. Tax Increments. The City hereby appropriates all Pledged Tax Increments received by it pursuant to the Pledge Agreement to the Debt Service Account, which appropriation shall continue until all of the Bonds and any additional bonds payable from the Debt Service Account, are paid or discharged. The City hereby expressly reserves the right to use the Tax Increments to finance costs set forth in the TIF Plan not financed hereby or to finance costs of other projects to be undertaken from time to time within the Redevelopment Project Area in accordance with the Redevelopment Plan and the TIF Plan, as they may from time to time be amended. 17. Coverage Test. The collections of Pledged Tax Increments and other revenues herein pledged are such that if collected in full they produce at least five percent (5 in excess of the amount needed to meet when due the principal and interest payments on the Bonds. 18, General Obliiiation Pledize. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 19. Certificate of Registration. The Clerk is hereby directed to file a certified copy of this resolution and a copy of the Tax Increment Pledge Agreement with the County Auditor of Hennepin County, Minnesota, together with such other information as he or she shall require, and to obtain the County Auditor's Certificate that the Bonds have been entered in the County Auditor's Bond Register and the Tax Increment Pledge Agreement has been filed. 20. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, subject to sale and/or reinvestment, to pay all amounts to become due thereon to'maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 21. Continuing Disclosure. (a) The City is the sole obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2 -12 (the "Rule promulgated by the Securities and Exchange Commission (the "Commission pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking hereinafter described to: (1) Provide or cause to be provided to each nationally recognized municipal securities information repository "NRMSIR and to the appropriate state information depository "SID if any, for the State of Minnesota, in each case as designated by the Commission in accordance with the Rule, certain annual financial information and operating data in accordance with the Undertaking. (2) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the Municipal Securities Rulemaking Board "MSRB and (ii) the SID, notice of the occurrence of certain material events with respect to the Bonds in accordance with the Undertaking. (3) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the MSRB and (ii) the SID, notice of a failure by the Issuer to provide the annual financial information with respect to the Issuer described in the Undertaking. (4) The City agrees that its covenants pursuant to the Rule set forth in this paragraph and in the Undertaking are intended to be for the benefit of the holders and any other beneficial owners of the Bonds and shall be enforceable on behalf of such holders and beneficial owners; provided that the right to enforce the provisions of these covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the covenants. (b) The Mayor and Manager of the City, or any other officer of the City authorized to act in their place, (the "Officers are hereby authorized and directed to execute on behalf of the City the Undertaking in substantially the form presented to the City Council, subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the purchaser of the Bonds and (iii) acceptable to the Officers. 22. Execution of Pledge Agreement. The Mayor and City Manager are hereby authorized to execute the Tax Increment Pledge Agreement in substantially the form presented to the City Council. 23. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 24. Reservation of Rights. Notwithstanding any provisions herein to the contrary, City reserves the right to terminate reduce or apply to other lawful purposes the �'3'� Y g pP Y Pledged Tax Increments to the payment of the Bonds and interest thereon to the extent and in the manner permitted by law. 25. Ratification. On April 14, 2008, the City Council approved the Terms of Proposal (the "Terms of the Bonds, which Terms provided for a sale date for the Bonds of May 12, 2008 and a dated date of June 1, 2008. The City hereby ratifies the change of the sale date to April 28, 2008 and the dated date to May 1, 2008 for the Bonds, as set forth herein. 26. Severabilitv. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 27. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. April 28, 2008 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. OFFICIAL STATEMENT DATED APRIL 18, 2008 Rating: Requested from Moody's NEW ISSUE Investors Service regulations, In the opinion of Briggs and Morgan, Professional Association, Bond Counsel, based on present Minnesota laws, rulings and decisions, at the time of their issuance and delivery to the original purchaser the Bonds are a valid and binding general obligation. Interest on the Bonds is includable in gross income for purposes of United States and State of Minnesota income tax. (See 'Taxability of Interest" herein.) $4,335,000 City of Brooklyn Center, Minnesota Taxable General Obligation Tax Increment Bonds, Series 2008A (Book Entry Only) Dated Date: May 1, 2008 Interest Due: February 1 and August 1, commencing February 1, 2009 The Bonds will mature February 1 as follows: 2009 $1,670,000 2011 $125,000 2013 $125,000 2015 $125,000 2017 $125,000 2010 $1,665,000 2012 $125,000 2014 $125,000 2016 $125,000 2018 $125,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption and must conform to the maturity schedule set forth above. The City may elect on February 1, 2016, and on any day thereafter, to prepay Bonds due on or after February 1, 2017 at a price of par plus accrued interest. The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge net revenues of the Brooklyn Center Economic Development District's Tax Increment Financing District No. 3. Proceeds of the Bonds will be used to finance the acquisition, demolition, clearance, site preparation, and various other improvements in target redevelopment areas within the City. Proposals must be for not less than $4,300,320 plus accrued interest on the total principal amount of the Bonds and must be accompanied by a good faith deposit in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $43,350, payable to the order of the City. Proposals shall specify rates in integral multiples of 5/100 or 1/8 of 1 Rates must be in level or ascending order. The Bonds will be awarded on the basis of True Interest Cost (TIC). The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of Cede Co., as nominee of The Depository Trust Company "DTC DTC will act as securities depository for the Bonds. Individual purchases may be made in book entry form only, in the principal amount of $5,000 and integral multiples thereof. Investors will not receive physical certificates representing their interest in the Bonds purchased. (See "Book Entry System" herein.) U.S. Bank National Association, St. for the Bonds. Bonds will be available for delivery Paul, Minnesota, will serve as registrar (the "Registrar") o rY at DTC on or about May 14, 2008. PROPOSALS RECEIVED: April 28, 2008 (Monday) until 11:00 A.M., Central Time AWARD: April 28, 2008 (Monday) at 7:00 P.M., Central Time S p r i n g s t e d Further information may be obtad from SPRINGSTED Incorporated, Financial Advisor to the City, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101 -2887 (651) 223 -3000 For purposes of compliance with Rule 15c2 -12 of the Securities and Exchange Commission, this document, as the same may be supplemented or corrected by the City from time to time (collectively, the "Official Statement"), may be treated as an Official Statement with respect to the Bonds described herein that is deemed final as of the date hereof (or of any such supplement or correction) by the City, except for the omission of certain information referred to in the succeeding paragraph. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2 -12. Any such addendum shall, on and after the date thereof, be fully incorporated herein and made a part hereof by reference. By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded copies of the Official Statement and the addendum or addenda described in the preceding paragraph in the amount specified in the Terms of Proposal. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a Proposal with respect to the Bonds agrees thereby that if its bid is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. No dealer, broker, salesman or other person has been authorized by the City to give any information or to make any representations with respect to the Bonds, other than as contained in the Official Statement or the Final Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the City. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITY SINCE THE DATE THEREOF. References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts of documents prepared by or on behalf of the City have not been included as appendices to the Official Statement or the Final Official Statement, they will be furnished on request. Any CUSIP numbers for the Bonds included in the Final Official Statement are provided for investors. convenience of the owners and prospective n es tors. The CUSIP numbers for the Bonds have been assigned by an organization unaffiliated with the City. The City is not responsible for the selection of the CUSIP numbers and makes no representation as to the accuracy thereof as printed on the Bonds or as set forth in the Final Official Statement. No assurance can be given that the CUSIP numbers for the Bonds will remain the same after the date of issuance and delivery of the Bonds. TABLE OF CONTENTS Page(s Termsof Proposal i -iv IntroductoryStatement 1 ContinuingDisclosure 1 TheBonds 2 Authorityand Purpose 4 Securityand Financing 4 FutureFinancing 5 Litigation............................................................................................ 5 Legality.............................................................................................. 5 Taxabilityof Interest 5 Rating................................................................................................ 5 FinancialAdvisor 6 Certification........................................................................................ 6 CityProperty Values 7 CityIndebtedness 8 City Tax Rates, Levies and Collections 12 Funds on Hand 13 CityInvestments 13 General Information Concerning the City 14 Governmental Organization and Services 17 Proposed Form of Legal Opinion Appendix Continuing Disclosure Undertaking Appendix II Summary of Tax Levies, Payment Provisions, and Minnesota Real Property Valuation Appendix III Excerpt of 2006 Annual Financial Statements Appendix IV THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $4,335,000 CITY OF BROOKLYN CENTER, MINNESOTA TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2008A (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, April 28, 2008, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner in which the Proposal is submitted. (a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223 -3046 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (651) 223 -3000 or fax (651) 223 -3046 for inclusion in the submitted Proposal. OR (b) Electronic Biddina. Notice is hereby given that electronic proposals will be received via PARITY". For purposes of the electronic bidding process, the time as maintained by PARITY shall constitute the official time with respect to all Bids submitted to PARITY Each bidder shall be solely responsible for making necessary arrangements to access PARITY for purposes of submitting its electronic Bid in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City, its agents nor PARITY shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City, its agents nor PARITY shall be responsible for a bidder's failure to register to bid or for any failure in the proper operation of, or have any liability for any delays or interruptions of or any damages caused by the services of PARITY The City is using the services of PARITY sole) as a communication mechanism to conduct the electronic bidding for the Bonds, and PARITY not an agent of the City. If any provisions of this Terms of Proposal conflict with information provided by PARITY this Terms of Proposal shall control. Further information about PARITY including any fee charged, may be obtained from: PARITY 1359 Broadway, 2 Floor, New York, New York 10018 Customer Support: (212) 849 -5000 -i- DETAILS OF THE BONDS The Bonds will be dated May 1, 2008, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2009. Interest will be computed on the basis of a 360-day year of twelve 30-day months. P YY Y The Bonds will mature February 1 in the years and amounts as follows: 2009 $1,670,000 2012 $125,000 2015 $125,000 2017 $125,000 2010 $1,665,000 2013 $125,000 2016 $125,000 2018 $125,000 2011 125,000 2014 $125,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption and must conform to the maturity schedule set forth above. In order to designate term bonds, the proposal must specify "Years of Term Maturities" in the spaces provided on the Proposal Form. BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede Co. as nominee of The Depository Trust Company "DTC New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar, which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2016, and on any day thereafter, to prepay Bonds due on or F 7. Redemption may be in whole or in art and if in art at the after February 1, 201 p y option of the p p P City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participants interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in All prepayments shall be at a rice of par such maturity o be redeemed plus accrued interest. p tY P P SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge net revenues of the Brooklyn Center Economic Development District's Tax Increment Financing District No. 3. The proceeds will be used to finance the acquisition, demolition, clearance, site preparation, and various other improvements in target redevelopment areas within the City. -ii- TAXABILITY OF INTEREST The interest to be paid on the Bonds is includable in gross income of the recipient for United States and State of Minnesota income tax purposes, and is subject to Minnesota Corporate and bank excise taxes measured by net income. TYPE OF PROPOSALS Proposals shall be for not less than $4,300,320 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit "Deposit in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $43,350, payable to the order of the City. If a check is used, it must accompany the proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The Deposit received from the purchaser, the amount of which will be deducted at settlement, will be deposited by the City and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1 Rates must be in level or ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no- litigation certificate. On the date of settlement p for the Bonds shall be made in federal g �P Y or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non compliance with said terms for payment. CONTINUING DISCLOSURE On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaking (the "Undertaking whereunder the City will covenant for the benefit of the owners of the Bonds to provide certain financial and other information about the City and notices of certain occurrences to information repositories as specified in and required by SEC Rule 15c2- 12(b)(5). OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223 -3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2 -12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 175 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated April 14, 2008 BY ORDER OF THE CITY COUNCIL /s/ Sharon Knutson Clerk iv OFFICIAL STATEMENT $4,335,000 CITY OF BROOKLYN CENTER, MINNESOTA TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2008A (BOOK ENTRY ONLY) INTRODUCTORY STATEMENT This Official Statement contains certain information relating to the City of Brooklyn Center, Minnesota (the "City" or the "Issuer") and its issuance of $4,335,000 Taxable General Obligation Tax Increment Bonds, Series 2008A (the "Bonds the "Obligations" or the "Issues"). The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge net revenues of the Brooklyn Center Economic Development District's Tax Increment Financing District No. 3. Inquiries may be directed to Mr. Daniel Jordet, Director of Fiscal and Support Services, City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430, or by telephoning (763) 569 -3345. Information may also be obtained from Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota 55101 -2887, or by telephoning (651) 223 -3000. If information of a specific legal nature is desired, requests may be directed to Ms. Mary Dyrseth of Briggs and Morgan, Professional Association, St. Paul and Minneapolis, Minnesota, Bond Counsel (651) 808 -6625. CONTINUING DISCLOSURE In order to assist the Underwriters in complying with SEC Rule 15c2 -12 (the "Rule pursuant to the Award Resolution and Continuing Disclosure Undertaking to be executed on behalf of the City on or before closing, the City has and will covenant (the "Undertaking for the benefit of holders or beneficial owners of the Bonds to provide certain financial information and operating data relating to the City to certain information repositories annually, and to provide notices of the occurrence of certain events enumerated in the Rule to certain information repositories or the Municipal Securities Rulemaking Board and to any state information depository. The specific nature of the Undertaking, as well as the information to be contained in the annual report or the notices of material events is set forth in the Continuing Disclosure Undertaking in substantially the form attached hereto as Appendix II, subject to such modifications thereof or additions thereto as: (i) consistent with requirements under the Rule, (ii) required by the purchaser of the Bonds from the City and (iii) acceptable to the Mayor and Manager of the City. The City has never failed to comply in all material respects with any previous undertakings under the Rule to provide annual reports or notices of material events. A failure by the City to comply with the Undertaking will not constitute an event of default on the Bonds (although holders or other beneficial owners of the Bonds will have the sole remedy of bringing an action for specific performance). Nevertheless, such a failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. -1- THE BONDS General Description The Bonds are dated as of May 1, 2008. The Bonds will mature annually on February 1 as set forth on the cover of this Official Statement. The Bonds are issued in book entry form. Interest on the Bonds is payable on February 1 and August 1 of each year, commencing February 1, 2009. Interest will be payable to the holder (initially Cede Co.) registered on the books of the Registrar on the fifteenth day of the calendar month next preceding such interest payment date. Principal of and interest on the Bonds will be paid as described in the Section herein entitled "Book Entry System." U.S. Bank National Association, St. Paul, Minnesota, will serve as Registrar for the Bonds and the City will pay for registration services. Optional Redemption The City may elect on February 1, 2016, and on any day thereafter, to prepay Bonds due on or after February 1, 2017. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. Book Entry System The Depository Trust Company "DTC New York, New York, will act as securities depository for the Obligations. The Obligations will be issued as fully- registered securities registered in the name of Cede Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered certificate will be issued for each maturity of the Obligations, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC is a limited purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing g p des sse sery c n for securities 9 that its participants "Direct Participants deposit with DTC. DTC also facilitates the post -trade settlement among irect Participants g c pants of sales and other securities transactions in deposited securities through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This s eliminates the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust Clearing Corporation "DTCC DTCC, in turn, is owned by a number of Direct Participants of DTC and members of the National Securities Clearing Corporation and Fixed Income Clearing Corporation all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as securities brokers and dealers, banks, trust companies and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly "Indirect Participants The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.ora. -2- Purchases of Obligations under the DTC system must be made by or through Direct Participants, which will receive a credit for the Obligations on DTC's records. The ownership interest of each actual purchaser of each Obligation "Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written ce a confirmations providing details of the transaction, as well as periodic statements of their holdings, from g the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership nterests in the e Obligations are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Obligations, except in the event that use of the book -entry system for the Obligations is discontinued. To facilitate subsequent transfers, all Obligations deposited by Direct Participants with DTC are registered in the name of DTC's partnership ominee, Cede Co., or such other name as may Y be requested by an authorized representative of DTC. The deposit of Obligations with DTC and their registration in the name of Cede Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has as no knowledge of the actual Beneficial Owners of the P g Obligations; DTC's records reflect only the identity of the Direct Participants to whose accounts such Obligations are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Obligations may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Obligations, such as redemptions, tenders, defaults, and proposed amendments to the Obligations documents. For example, Beneficial Owners of the Obligations may wish to ascertain that the nominee holding the Obligations for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of the notices be provided directly to them. Redemption notices are required to be sent to DTC. If less than all of the Obligations within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede Co. (nor such other DTC nominee) will consent or vote with respect to the Obligations unless authorized by a Direct Participant in accordance with DTC's procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer or Bond Registrar as soon as possible after the record date. The Omnibus Proxy assigns Cede Co.'s consenting or voting rights to those Direct Participants to whose accounts the Obligations are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payment of principal, interest, and redemption premium, if any, on the Obligations will be made to Cede Co. or such other i e nom n e as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts, upon DTC's receipt of funds and corresponding detail information from the Issuer or its agent on the payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC (nor its nominee), the Bond Registrar, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, interest, and redemption premium, if any, to Cede -3- Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Bond Registrar, Issuer, or the Issuer's agent. Disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. A Beneficial Owner shall give notice to elect to have its Obligations purchased or tendered, through its Participant, to Trustee, and shall effect delivery of such Obligations by causing the Direct Participant to transfer the Participant's interest in the Obligations, on DTC's records, to Trustee. The requirement for physical delivery of Obligations in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Obligations are transferred by Direct Participants on DTC's records and followed by a book entry credit of tendered Obligations to Trustee's DTC account. DTC may discontinue providing its services as securities depository with respect to the Obligations at any time by giving reasonable notice to the Issuer or its agent. Under such circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and delivered. The Issuer may decide to discontinue use of the system of book entry-only transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered to DTC. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. AUTHORITY AND PURPOSE The Bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475. Proceeds of the Bonds will be used to finance the acquisition, demolition, clearance, site preparation, and various other improvements in target redevelopment areas within the City. The composition of the Bonds is as follows: Deposit to Project Funds $4,259,000 Costs of Issuance 41,320 Allowance for Discount Bidding 34.680 Total Bond Issue $4,335,000 SECURITY AND FINANCING The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City pledges net revenues of the Brooklyn Center Economic Development District's Tax Increment Financing District No. 3. Previously collected tax increment revenues of the City will be used to make the principal and interest payments due through February 1, 2010. Thereafter, each year's collection of tax increment revenues, if collected in full, will be sufficient to pay 105% of the interest payment due August 1 in the year of collection and the principal and interest payment due February 1 the following year. The City does not anticipate the need to levy taxes for repayment of the Bonds. -4- FUTURE FINANCING The City does not anticipate issuing any additional debt within the next 90 days. I LITIGATION The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the City's ability to meet its financial obligations. LEGALITY The Bonds are subject to approval as to certain matters by Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, as Bond Counsel. Bond Counsel has not participated in the preparation of this Official Statement and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify, any of the financial or statistical statements, or data contained in this Official Statement and will express no opinion with respect thereto. A legal opinion in substantially the form set out in Appendix t herein will be delivered at closing. TAXABILITY OF INTEREST The interest to be paid on the Bonds is includable in the income of the recipient for purposes of the United States and State of Minnesota income taxation. RATING An application for a rating of the Bonds has been made to Moody's Investors Service "Moody's 7 World Trade Center, 250 Greenwich Street, 23` Floor, New York, New York. If a rating is assigned, it will reflect only the opinion of Moody's. Any explanation of the significance of the rating may be obtained only from Moody's. There is no assurance that a rating, if assigned, will continue for any given period of time, or that such rating will not be revised or withdrawn if, in the judgment of Moody's, circumstances so warrant. A revision or withdrawal of the rating may have an adverse effect on the market price of the Bonds. -5- FINANCIAL ADVISOR The City has retained Springsted Incorporated, Public Sector Advisors, of St. Paul, Minnesota, as financial advisor (the "Financial Advisor") in connection with the issuance of the Bonds. In preparing the Official Statement, the Financial Advisor has relied upon governmental officials, and other sources, who have access to relevant data to provide accurate information for the Official Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to independently verify the accuracy of such information. The Financial Advisor is not a public accounting fine and has not been engaged by the City to compile, review, examine or audit any information in the Official Statement in accordance with accounting standards. The Financial Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities and therefore will not participate in the underwriting of the Bonds. CERTIFICATION The City has authorized the distribution of this Official Statement for use in connection with the initial sale of the Bonds. As of the date of the settlement of the Bonds, the Purchaser will be furnished with a certificate signed by the appropriate officers of the City. The certificate will state that as of the date of the Official Statement, the Official Statement did not and does not as of the date of the certificate contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. (The Balance of This Page Has Been Intentionally Left Blank) -6- CITY PROPERTY VALUES 2007 Indicated Market Value of Taxable Property: $2,465,329,505* Indicated market value is calculated by dividing the taxable market value of $2,189,292,600 by the 2006 sales ratio of 88.8% for the City as determined by the State Department of Revenue. (2007 sales ratios are not yet available.) 2007 Taxable Net Tax Capacity: $25,939,858 2007 Net Tax Capacity $26,190,151 Less: Captured Tax Increment Tax Capacity (2,405,929) Contribution to Fiscal Disparities (2,470,328) Plus: Distribution from Fiscal Disparities 4,625,964 2007 Taxable Net Tax Capacity $25,939,858 2007 Taxable Net Tax Capacity by Type of Property Real Estate: Residential Homestead $16,033,784 61.8% Commercial /Industrial, Public Utility, Agricultural and Railroad* 7,490,836 28.9 Residential Non Homestead 2,123,423 8.2 Personal Property 291,815 1.1 Total $25,939,858 100.0% Reflects adjustments for fiscal disparities and captured tax increment tax capacity. Trend of Values Indicated Taxable Taxable Net Market Value(a) Market Value Tax Caoacitv(b) 2007 $2,465,329,505 $2,189,212,600 $25,939,858 2006 2,380,535,135 2,113,915,200 24,453,648 2005 2,210,769,673 1,960,952,700 22,319,064 2004 2,171,503,981 1,800,176,800 20,275,794 2003 2,033,985,982 1,625,154,800 18,588,859 (a) Indicated market values are calculated by dividing the taxable market value by the sales ratio as certified for the City each year by the State Department of Revenue. W See Appendix 111 for an explanation of taxable net tax capacity and the Minnesota property tax system. -7- Ten of the Largest Taxpayers in the City 2007 Net Tax payer Type of Prooerty_ Tax Capacity Brooks Mall Properties LLC Brookdale Mall 261,190 Brookdale Comer LLC Retail 209,850 Medtronic Inc. Industrial 199,398 Regal Cinemas Inc. Theater 185,970 TLN Lanel Ltd Partnership Apartments 171,363 Twin Lakes Business Park Apartments 171,170 Target Corporation Retail 165,450 City County Federal Credit Union Credit Union 132,650 Melrose Gates LLC Apartments 127,069 DHM Minneapolis Hotel LP P Commercial 118.050 Total $1,742,160" Represents 6.7% of the City's 2007 taxable net tax capacity. CITY INDEBTEDNESS Legal Debt Limit' Legal Debt Limit (2% of Taxable Market Value) $43,784,252 Less: Outstanding Direct Debt Subject to Limit (3.275.000) Legal Debt Margin as of February 29, 2008 $40,509,252 Beginning with issues having a settlement date after June 30, 2008, State statutes have increased the legal debt limit from 2% to 3% of the City's Taxable Market Value. As of February 29, 2008, under the new calculation the City's net debt limit would currently be $62,401,378. General Obligation Debt Supported by Taxes' Principal Date Original Final Outstanding of Issue Amount Puroose Maturitv As of 2 -29 -08 1 -1 -04 $5,045,000 Police and Fire Building Refunding 2 -1 -2013 $3,275,000 This issue is subject to the statutory debt limit. -8- General Obligation Debt Supported Primarily by Taxes and /or Special Assessments Principal Date Original Final Outstanding of Issue Amount Purpose Maturitv As of 2 -29 -08 12 -1 -98 $1,085,000 Improvements 2 -1 -2009 95,000 12 -1 -99 1,585,000 Improvements 2 -1 -2010 305,000 12 -1 -00 735,000 Improvements 2 -1 -2011 200,000 12 -1 -01 730,000 Improvements 2 -1 -2012 265,000 1 -1 -03 1,205,000 Improvements 2 -1 -2013 560,000 12 -1 -04 1,010,000 Improvements 2 -1 -2015 675,000 12 -15 -06 1,460,000 Improvements 2 -1 -2017 1,200.000 Total $3,300,000 General Obligation Debt Supported by Tax Increment Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 2 -29 -08 1 -1 -04 2,470,000 Taxable Tax Increment Refunding 2 -1 -2011 1,230,000 12 -1 -04 17,245,000 Taxable Tax Increment 2 -1 -2020 14,995,000 6 -1 -08 4,335,000 Taxable Tax Increment (this Issue) 2 -1 -2018 4.335.000 Total $20,560,000 Annual Calendar Year Debt Service Payments Including This Issue G.O. Debt Supported G.O. Debt Supported Primarily by Taxes by Taxes and /or Special Assessments Principal Principal Year Principal Interest PrinClDal Interest 2008 (at 2 -29) (Paid) 51,526.25 (Paid) 63,133.75 2009 610,000 703,902.50 765,000 876,351.25 2010 640,000 715,152.50 645,000 728,597.50 2011 640,000 695,632.50 485,000 546,495.00 2012 685,000 719,581.25 415,000 459,433.75 2013 700,000 711,725.00 340,000 370,361.25 2014 230,000 249,887.50 2015 225,000 236,550.00 2016 130,000 134,940.00 2017 65,000 66,235.00 Total $3,275,000 $3,597,520.00 $3,300,000 $3,731 -9- Annual Calendar Year Debt Service Payments Including This Issue (Continued) G.O. Debt Supported by Tax Increment Principal Year Principal Interest(a) 2008 (at 2 -29) (Paid) 391,482.50 2009 2,765,000 3,688,974.80 2010 2,785,000 3,572,301.26 2011 1,290,000 1,991,905.01 2012 925,000 1,575,853.13 2013 1,365,000 1,962,012.50 2014 1,430,000 1,960,943.75 2015 1,505,000 1,966,300.00 2016 1,575,000 1,963,025.00 2017 1,665,000 1,973,900.00 2018 1,735,000 1,958,837.50 2019 1,720,000 1,856,325.00 2020 1.800.000 1.846.125.00 Total $20,560,000(b) $26,707,985.45 (a) Includes the Bonds at an assumed average annual interest rate of 4.30 M 82.9% of this debt will be retired within ten years. Summary of General Obligation Direct Debt Gross Less: Debt Net Debt Service Funds' Direct Debt G.O. Debt Supported by Taxes 3,275,000 $(1,605,088) 1,669,912 G.O. Debt Supported Primarily by Taxes and /or Special Assessments 3,300,000 (1,976,933) 1,323,067 G.O. Debt Supported by Tax Increment 20,560,000 -0- 20,560,000 Debt service funds are as of February 29, 2008 and include money to pay both principal and interest. -10- Indirect General Obligation Debt Debt Applicable to 2007 Taxable G.O. Debt Tax Capacity in Citv Taxina Unit(a) Net Tax Capacity As of 2- 29 -08(b) Percent Amount Hennepin County $1,602,797,286 $491,295,000 1.6% 7,860,720 Hennepin County Regional Railroad 1,602,797,286 44,900,000 1.6 718,400 Three Rivers Park District 1,192,261,639 60,535,000 2.2 1,331,700 ISD No. 11 (Anoka- Hennepin) 47,824,490 147,827,199 7.0 10,347,904 ISD No. 279 (Osseo) 166,174,621 163,610,000 5.3 8,671,330 ISD No. 281 (Robbinsdale) 108,649,682 159,495,000 5.3 8,453,235 ISD No. 286 (Brooklyn Center) 7,929,162 29,600,000 100.0 29,600,000 Metropolitan Council 3,594,085,267 21,645,000(0 0.7 151,515 Metropolitan Transit District 2,807,278,163 144,015,000( 0.9 1,296,135 Total $68,431,009 (a) Only those taxing units with debt outstanding are shown here. W Excludes general obligation tax and aid anticipation debt and revenue supported debt. Includes annual appropriation lease obligations. (0 Excludes general obligation debt payable from sewer system revenues, 911 user fees, and housing rental payments. Includes certificates of participation. (d) Includes lease revenue bonds, subject to annual appropriation, issued by the Bloomington Port Authority for constructing and equipping a transit station and parking ramp. Debt Ratios G.O. Net G.O. Indirect Direct Debt` Net Direct Debt To 2007 Indicated Market Value ($2,465,329,505) 0.96% 3.73% Per Capita (28,137 2007 State Demographer's Estimate) $837 $3,269 Excludes general obligation debt supported by revenues. -11- CITY TAX RATES, LEVIES AND COLLECTIONS Tax Capacity Rates for a City Resident in Independent School District No. 286 (Brooklyn Center) 2007/08 For 2003104 2004/05 2005/06 2006/07 Total Debt Oniv Hennepin County 47.324% 44.172% 41.016% 39.110% 38.571% 3.131% City of Brooklyn Center(a) 53.693 51.723 48.069 45.366 45.081 -0- ISD No. 286 (Brooklyn Center)(b) 39.892 36.159 39.781 36.154 37.519 25.310 Special Districts() 7.488 7.382 6.998 7.310 7.396 3.336 Total 148.397% 139.436% 135.864% 127.940% 128.567% 31.777% (a) The City also has a 2007/08 tax rate of 0.03346% spread on the market value of property in support of debt service. The City's tax capacity rate includes the Brooklyn Center Housing and Redevelopment Authority and Economic Development Authority. M Independent School District No. 286 (Brooklyn Center) also has a 2007108 tax rate of 0.05676% spread on the market value of property in support of an excess operating levy. (c) Special districts include Metropolitan Council, Mosquito Control, Metropolitan Transit, Hennepin Park Museum, Hennepin County Regional Rail Authority, and Three Rivers Park District. NOTE. Taxes are determined by multiplying the net tax capacity by the tax capacity rate, plus multiplying the referendum market value by the market value rate. This table does not include the market value based rates. (See Appendix Ill.) Tax Levies and Collections Collected During Collected Net Collection Year As of 12 -31 -07 Levv /Collect Levv Amount Percent Amount Percent 2007/08 $12,437,416 (In process of collection) 2006/07 11, 368, 578 $11,070,386 97.4% $11,070,386 97.4% 2005/06 10,971,063 10,697,637 97.5 10,889,455 99.3 2004/05 10,586,264 10,403,359 98.3 10,559,494 99.7 2003/04 9,994,049 9,504,581 95.1 9,978,525 99.8 The net levy excludes state aid for property tax relief and fiscal disparities, if applicable. The net levy is the basis for computing tax capacity rates. -12- FUNDS ON HAND As of February 29, 2008 Fund Cash and Investments General 7 6,23 572 Special Revenue 14,785,602 Capital Projects 4,213,202 Debt Service: Taxes 1,605,088 Special Assessments 1,976,933 Enterprise 9,113,473 Internal Service 6,831.373 Total $44,763,243 CITY INVESTMENTS The City's investment policy, last revised in October 2006, has the objectives of preserving safety of principal, retaining sufficient liquidity, providing a market rate of return, and yielding stable earnings on invested City funds. Minnesota Statutes, Chapter 118A, authorize and define an investment program for municipal governments. The City may invest in the following instruments allowed by Minnesota Statutes: a. Securities that are the direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress; including governmental bills, notes, bonds, and other securities. b. Commercial paper issued by U.S. corporations or their Canadian subsidiaries that is rated in the highest quality by at least two nationally recognized rating agencies and matures in 270 days or less. These investments are limited by City policy to funds that are professionally managed and include a mix of investments. c. Time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of U.S. banks. d. Repurchase agreements and reverse repurchase agreements may be entered into with financial institutions identified by Minnesota Statutes, Chapter 118A. e. Securities lending agreements may be entered into with financial institutions identified by Minnesota Statutes, Chapter 118A. f. Minnesota joint powers investment trusts may, be entered into with trusts identified by Minnesota Statutes, Chapter 118A g. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of short-term securities permitted by Minnesota Statutes, Chapter 118A. h. Bonds of the City of Brooklyn Center issued in prior years may be redeemed at current market price, which may include a premium, prior to maturity using surplus funds of the debt service fund set up for that issue. Such repurchased bonds shall be canceled and removed from the obligation of the fund. -13- Derivative securities, which obtain their value by the calculation of some portion of the value of another security, shall not be purchased. Mortgage backed securities, which are not agency securities backed by the United States government, and stripped securities also shall not be purchased pursuant to the City's investment policy. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. Safety of principal is the foremost objective. Liquidity and yield are also important considerations. It is essential that the investment portfolio remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. The investment portfolio of the City shall be designed to attain a market average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraints and liquidity needs. Return on investment is of least importance compared to the objectives for safety and liquidity. Securities shall be held to maturity with the exceptions of meeting the liquidity needs of the portfolio and minimizing loss of principal for a security of declining credit. Securities of various maturities shall be purchased so that at least half of the investment portfolio will remain for two or more years with known interest rates. Authority to manage the investment program is vested in the City Manager, City Treasurer, and Assistant Finance Director, with the City Treasurer responsible for establishing and maintaining an internal control structure to provide reasonable assurance that the objectives of the investment policy are met. As of February 29, 2008, the City had $44,132,576 (par value) invested, with a market value of $44,128,216 (100% of the original cost to the City plus amortized premium). Government agency securities totaled $1,000,000, representing 2.2% of the portfolio. The balance of $43,132,576, representing 97.8% of the portfolio, was invested in money market accounts. All of the investments in the City's portfolio mature within 18 months or less. The longest investment held by the City is currently scheduled to mature in March of 2008. GENERAL INFORMATION CONCERNING THE CITY The City of Brooklyn Center is a northern suburb of the Minneapolis /Saint Paul metropolitan area, adjacent to the City of Minneapolis. The City is wholly within Hennepin County and encompasses an area of approximately 8.5 square miles (5,500 acres). The Mississippi River forms the City's eastern boundary. The City experienced its most rapid growth from 1950 to 1970 when the City's population grew from 4,300 to its peak of 35,173. The State demographer's 2007 population estimate for the City was 28,137. The 2000 U.S. Census count for the City was 29,172, a 1.0% increase from the 1990 Census. Major transportation routes in and through the City, including Interstate Highways 94 and 694 and State Highways 100 and 252, have provided a continued impetus for the development of the City's commercial tax base. -14- Growth and Development Commercial and Industrial property comprises approximately 29% of the City's taxable net tax capacity. There are four major shopping centers located in the City in addition to a number of other retail establishments. These include Kohl's Department Store, Cub Foods, Schmitt Music, and several car dealerships. The largest commercial property in the City is Brookdale Mall, a 1,000,000 square -foot regional shopping center. The center is anchored by Sears and Macy's. The other retail centers in the City are Brookdale Square, a 125,000 square -foot strip mall with an eight- screen movie theater; Shingle Creek Center, a 157,000 square -foot complex anchored by Target; and Brookview Plaza, a 70,000 square -foot center anchored by Best Buy. Additionally, Regal Cinema operates a theater complex with 20 screens in an 85,000 square -foot facility. The U.S. General Services Administration (GSA) and the City executed a Development Agreement and Purchase Option for 8 acres of land at the intersection of Interstate 94 and Highway 100. This land, acquired by the City for redevelopment in 2007, will be the site of a new 140,000 square -foot Class A office building with adjacent parking ramp. The site will be developed by a third party on behalf of the GSA and will be fully taxable, expanding the City's tax base significantly. The Federal Bureau of Investigation will be the major tenant in the building with a 20 -year lease. Adjacent to the site is an additional 5.4 acres of redevelopment land being considered for ancillary purposes. The City recently executed a development agreement for a 250 -room hotel development adjacent to the City's Earle Browne Heritage Center, a conference and convention facility. The hotel will be linked to the conference center by a covered walkway. Construction began in the fall of 2007 and is expected to be completed by the fall of 2008. The City has acquired the Brookdale Ford site adjacent to Highway 100 and Bass Lake Road. This 7 acre site will be cleared and offered for redevelopment as commercial property by a third party developer. Adjacent to the site is an additional 11 acres of privately owned land being considered for retail expansion. This convergence of highways makes the City an attractive site for hotels and motels. Currently operating in the City are Americinn, Comfort Inn, Country Inn Suites, Days Inn, Extended Stay America, Crown Plaza Hotel, Motel 6, and Super 8 Motel Summary of Building Permits New Residential Total Permits Permits onlv Year Number Value Number Value 2008 (at 2 -29) 81 15,452 0 -0- 2007 1,076 19, 599, 553 2 490,000 2006 1,293 20,424,730 3 401,248 2005 1,043 19,004,355 17 2,328,500 2004 792 21,613,050 15 1,616,000 2003 886 53, 918, 257 15 2,003,000 2002 476 50,701,779 2 280,000 2001 954 63,720,613 0 -0- 2000 1,299 20,450,844 3 311,800 1999 1,745 44,188, 569 7 679,600 Includes townhomes. -15- Major Employers in the City Approximate Number Employer Product/Service of Emolovees Brookdale Center Shopping center 1,900 Promeon, Division of Medtronic, Inc. Medical devices 1,350 Graco, Inc. Spray paint equipment 800 Independent School District No. 286 (Brooklyn Center) Education 303 Nations Care Link Healthcare 225 Cub Foods Grocery 170 City of Brooklyn Center Government 153' Best Buy Electronics 145 Target Retail 140 TCR Corporation Metal components 140 Kohl's Retail 100 Cass Screw Machine Products Screw machine parts 100 Precision Inc. Electronic transformers and coils 100 Hiawatha Rubber Company Custom rubber molder 81 Northwest Athletic Club Health club 80 Creative Banner Assemblies Banners and flags 75 SL Power Electronics Electronics 12 Full -time employees. Source: Telephone survey of individual employers, April 2008. Labor Force Data February 2008 February 2007 Civilian Unemployment Civilian Unemployment Labor Force Rate Labor Force Rate Hennepin County 653,369 4.0% 652,364 3.8% Minneapolis /St. Paul MSA 1,837,232 4.6 1,834,149 4.4 State of Minnesota 2,901,317 5.2 2,910,007 5.1 Source: Minnesota Department of Employment and Economic Development. 2008 data are preliminary. Financial Institutions Branch facilities of financial institutions located in Brooklyn Center include: Wells Fargo Bank, National Association; Bremer Bank, National Association; and TCF National Bank, as well as numerous credit unions. -16- Education The City is served by four independent school districts: Independent School District No. 279 (Osseo), Independent School District No. 286 (Brooklyn Center), Independent School District No. 281 (Robbinsdale) and Independent School District No. 11 (Anoka- Hennepin). The City's taxable net tax capacity is attributable to each of the four school districts as follows: Portion of 2007 Taxable Net Tax Capacity Located in the Citv of Total ISD No. 279 (Osseo) 8,887,448 34.3% ISD No. 286 (Brooklyn Center)* 7,929,162 30.6 ISD No. 281 (Robbinsdale) 5,771,793 22.2 ISD No. 11 (Anoka- Hennepin) 3.351.455 12.9 Total $25,939,858 100.0% Independent School District No. 286 is located entirely within the City of Brooklyn Center. Medical Major medical facilities in the Minneapolis /St. Paul metropolitan area are easily accessible to City residents. North Memorial Medical Center is located in the adjacent City of Robbinsdale and has 518 acute care beds. Unity Hospital is located in the adjacent City of Fridley and has 275 acute care beds. Source: http✓lwww.health. state. mn. us /divslfpcldirectorylfpcdir.html GOVERNMENTAL ORGANIZATION AND SERVICES Organization Brooklyn Center has been a municipal corporation since 1911 and is governed under a Home Rule Charter adopted in 1966 and subsequently amended. The City has a Council- Manager form of government. The Mayor and four Council Members are elected to serve overlapping four -year terms. The following are the current City Council members: Expiration of Term Tim Willson Mayor December 31, 2010 Kay Lasman Council Member December 31, 2008 Mary O'Connor Council Member December 31, 2008 Dan Ryan Council Member December 31, 2010 Mark Yelich Council Member December 31, 2010 The City Manager, Mr. Comelious L. Boganey, is responsible for the administration of Council policy and the daily management of the City. The Manager is appointed by the Council and serves at its discretion. Mr. Boganey has served the City in this position since June 2006. Prior to that, Mr. Boganey served as the City's Assistant Manager since March 2003. He has also served as City Manager in Brooklyn Park, Minnesota and Port Arthur, Texas, and as Assistant City Manager in Kalamazoo, Michigan. -17- The Director of Fiscal and Support Services, Mr. Daniel Jordet, is responsible for directing the City's financial operations, including preparation of the comprehensive annual financial report and interim reports, and the investment of City funds. Mr. Jordet has served in this position since January 2004. He has also served as Finance Director in Waverly, Iowa and Saint Peter, Minnesota, as City Administrator in Saint Peter, Minnesota, and as Deputy City Manager /Chief Financial Officer in Mankato, Minnesota. Services The City has 153 full -time employees serving in various departments. 47 full -time swom police officers and a support staff of 15 provide protective services in the City. Fire protection is provided by one full -time Chief and a 35- member volunteer force. The City has two fire stations and a class 4 insurance rating. All areas of the City are serviced by municipal water and sewer systems. Water is supplied by nine wells and storage is provided by three elevated tanks with a combined total capacity of 3.0 million gallons. The municipal water system has a pumping capacity of 17.6 million gallons per day (mgd). The average daily water demand is estimated to be 2.5 mgd and peak demand is estimated to be 10 mgd. Water connections totaled 8,904 as of December 31, 2006. Although the City owns and maintains its own sanitary and storm sewer collection systems, wastewater treatment facilities are owned and operated by the Metropolitan Council's Office of Environmental Services, The City is billed an annual service charge by Met Council, which charge is adjusted each year based on the prior years' actual usage. The City had 8,807 sewer connections at the end of 2006. The City leases space for the operation of its two municipal liquor store facilities. The leases are both 10 -year leases, which began in June 2000 and 2003, with options of additional 10 -year extensions. City offices are located in the City's Civic Center, which also includes community facilities such as exercise and game rooms, classrooms, craft rooms, a 300 -seat hall, and a 50 -meter indoor /outdoor swimming pool. The City maintains 527 acres of parkland, much of which is located along Shingle Creek forming a "green way" north to south through the City. Recreational facilities include a par 3 nine -hole golf course, 20 playgrounds, softball and baseball diamonds, basketball courts, tennis courts, hockey and skating rinks, nature areas, trails, and an arboretum. Employee Pension Plans All full -time and certain part-time employees of the City are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost sharing, multiple employer retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters, and peace officers who qualify for membership by statute are covered by the PEPFF. The City's contributions to PERF for the years ended December 31, 2006, 2005, and 2004 were $363,334, $326,886, and $327,384, respectively. The City's contributions to PEPFF for the years ended December 31, 2006, 2005, and 2004 were $318,913, $274,868, and $289,468, respectively. The contributions were equal to the required contributions for each year as set by State Statute. -18- The City also contributes to the Brooklyn Center Fire Department Relief Association, a single employer retirement system providing retirement benefits to volunteer firefighters. Contributions totaled $157,346 in 2005 (most recent information available) and were paid entirely by the State. Other Post Employment Benefits The Governmental Accounting Standards Board (GASB) has issued Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45), which addresses how state and local governments must account for and report their obligations related to post employment healthcare and other non pension be (referred to as Other Post Employment Benefits or "OPEB GASB 45 requires that local governments account for and report the annual cost of OPEB and the outstanding obligations and commitments related to OPEB in essentially the same manner as they currently do for pensions. The City provides continued health insurance coverage for retired City employees who meet PERA eligibility requirements and have been employed by the City for a minimum of 25 years. This coverage does not extend to the retiree's family, except that if the retiree desires to continue family coverage, the coverage can be continued if the retiree reimburses the City for the additional cost above single coverage. This benefit began in 1986 and was subsequently discontinued for employees hired after January 31, 1991. As of December 31, 2006, the City has 55 eligible participants. The City currently finances the plan on a pay -as- you -go basis. During 2006, the City expended $75,713 for these benefits. The retiree health benefits discussed above are the City's only OPEB. Beginning with the fiscal year ending December 31, 2008, the City must report an annual OPEB cost based on actuarially determined amounts that, if paid on an ongoing basis, will provide sufficient resources to pay these benefits as they come due. The City has hired the Stanton Group to perform an actuarial analysis of the projected yearly cost of these benefits. The Stanton Group's report is not yet complete and it is not known at this point what the City's liability will be with respect to these benefits. The City recorded $2,553,336 as an OPEB liability in its 2006 Comprehensive Annual Financial Report; however, this is not an actuarially determined amount, but the City's best estimate of the liability. -19- General Fund Budget 2006 2007 2008 Actual Budaet Budget Revenues: Property Taxes $10,418,863 $10,720,993 $11,233,679 Sales Tax (Lodging) 738,776 650,000 665,000 Licenses and Permits 722,633 771,443 723,845 Intergovernmental Revenue 1,269,005 1,290,030 1,652,008 Charges for Services 683,968 670,791 694,104 Fines and Forfeits 256,600 240,000 248,000 Miscellaneous Revenue 249,029 161,115 235,200 Administrative Reimbursements 76,210 40.000 67.000 Total Revenues $14,415,084 $14,544,372 $15,518,836 Expenditures: General Government 2,746,892 2,983,327 3,124,290 Public Safety 6,688,775 6,724,943 7,220,845 Public Works 2,586,003 2,809,296 2,944,329 Community Services 474,091 389,701 393,894 Parks and Recreation 1,312,432 1,341,348 1,394,957 Economic Development 488,045 563,836 735,618 Miscellaneous (165,396) (338,079) (365,097) Transfers to Other Funds 70,000 70.000 70,000 Total Expenditures $14,200,842 $14,544,372 $15,518,836 (The Balance of This Page Has Been Intentionally Left Blank) -20- APPENDIX I PROPOSED FORM OF LEGAL OPINION BRIGGS 32200 First National Bank Building 332 Minnesota Street St. Paul MN 55101 -1396 A N o tel 651.808.6600 fax 651.808.6450 $4,335,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2008A CITY OF BROOKLYN CENTER HENNEPIN COUNTY MINNESOTA We have acted as bond counsel in connection with the issuance by the City of Brooklyn Center, Hennepin County, Minnesota (the "Issuer of its $4,335,000 Taxable General Obligation Tax Increment Bonds, Series 2008A, bearing a date of original issue of May 1, 2008 (the "Bonds We have examined the law and such certified proceedings and other documents as we deem necessary to render this opinion. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and we express no opinion relating thereto. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation. Based upon such examinations, and assuming the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies and the authenticity of the originals of such documents, and the accuracy of the statements of fact contained in such documents, and based upon present Minnesota and federal laws (which excludes any pending legislation which may have a retroactive effect on or before the date hereof), regulations, rulings and decisions, it is our opinion that: The proceedings 1 for the issuance of the Bonds according to g show lawful authority their terms under the Constitution and laws of the State of Minnesota now in force. (2) The Bonds are valid and binding general obligations of the Issuer and all of the taxable property within the Issuer's jurisdiction is subject to the levy of an ad valorem tax to pay the same without limitation as to rate or amount; provided that the enforceability (but not the -1 validity) of the Bonds and the pledge of taxes for the payment of the principal and interest thereon is subject to the exercise of judicial discretion in accordance with general principles of equity, to the constitutional powers of the United States of America and to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted. (3) The interest on the Bonds is included in gross income for United States income tax purposes and is included, to the same extent, in both gross income and taxable net income for State of Minnesota income tax purposes. Dated at Saint Paul, Minnesota, this day of May, 2008. Professional Association 1 -2 APPENDIX II CONTINUING DISCLOSURE UNDERTAKING This Continuing Disclosure Undertaking (the "Disclosure Undertaking is executed and delivered by the City of Brooklyn Center, Minnesota (the "Issuer in connection with the issuance of $4,335,000 Taxable General Obligation Tax Increment Bonds, Series 2008A (the 'Bonds The Bonds are being issued pursuant to a Resolution adopted April 28, 2008 (the 'Resolution Pursuant to the Resolution and this Undertaking, the Issuer covenants and agrees as follows: A. Purmose of the Disclosure Undertaking. This Disclosure Undertaking is being executed and delivered by the Issuer for the benefit of the Owners and in order to assist the Participating Underwriters in complying with SEC Rule 15c2- 12(b)(5). B. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any annual financial information provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Undertaking. "Audited Financial Statements" shall mean the financial statements of the Issuer audited annually by an independent certified public accounting firm, prepared pursuant to generally accepted accounting principles promulgated by the Financial Accounting Standards Board, modified by governmental accounting standards promulgated by the Government Accounting Standards Board. "Dissemination Agent" shall mean such party from time to time designated in writing by the Issuer to act as information dissemination agent and which has filed with the Issuer a written acceptance of such designation. "Fiscal Year" shall be the fiscal year of the Issuer. "Governing Body" shall, with respect to the Bonds, have the meaning given that term in Minnesota Statutes, Section 475.5 1, Subdivision 9. "MSRB" shall mean the Municipal Securities Rulemaking Board. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The National Repositories as of the date of execution of this Undertaking are as listed on Exhibit A. "Occurrence(s)" shall mean any of the events listed in Section S.A. of this Disclosure Undertaking. "Official Statement" shall be the Official Statement dated April 18, 2008, prepared in connection with the Bonds. II -1 "Owners" shall mean the registered holders and, if not the same, the beneficial owners of any Bonds. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Repository" shall mean each National Repository and each State Depository. "Resolution" shall mean the resolution or resolutions adopted by the Governing Body of the Issuer providing for, and authorizing the issuance of, the Bonds. "Rule" shall mean Rule 15c2- 12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time or interpreted by the Securities and Exchange Commission. "State" shall mean the State of Minnesota. "State Depository" shall mean any public or private repository or entity designated by the State as a state depository for the purpose of the Rule. As of the date of this Disclosure Undertaking, there is no State Depository in Minnesota. C. Provision of Annual Reports. 1. Beginning in connection with the Fiscal Year ending on December 31, 2007, the Issuer shall, or shall cause the Dissemination Agent to, as soon as available, but in any event not later than December 31, 2008, and by December 31 of each year thereafter, provide to each Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Undertaking. 2. If the Issuer is unable to provide to the Repositories an Annual Report by the date required in subsection A, the Issuer shall send a notice of such delay and estimated date of delivery to each Repository or to the MSRB and to the State Depository, if any. 3. Any filing under this Disclosure Undertaking may be made solely by transmitting such filing to the Texas Municipal Advisory Council (the "MAC as provided at httD: /www.disclosureusa.ore unless the United States Securities and Exchange Commission has withdrawn the interpretive advice in its letter to the MAC dated September 7, 2004. D. Content and Format of Annual Reports. The Issuer's Annual Report shall contain or incorporate by reference the financial information and operating data pertaining to the Issuer listed below as of the end of the preceding Fiscal Year. The Annual Report may be submitted to each Repository as a single document or as separate documents comprising a package, and may cross reference other information as provided in this Disclosure Undertaking. 11 -2 The following financial information and operating data shall be supplied: (i) An update of the type of information contained in the Official Statement under the caption CITY PROPERTY VALUES; CITY INDEBTEDNESS; and CITY TAX RATES, LEVIES AND COLLECTIONS; (ii) Audited Financial Statements of the Issuer. The Audited Financial Statements of the Issuer may be submitted to each Repository separately from the balance of the Annual Report. In the event Audited Financial Statements of the Issuer are not available on or before the date for filing the Annual Report with the appropriate Repositories as set forth in Section 3.A. above, unaudited financial statements shall be provided as part of the Annual Report. The accounting principles pursuant to which the financial statements will be prepared will be pursuant to generally accepted accounting principles promulgated by the Financial Accounting Standards Board, as such principles are modified by the governmental accounting standards promulgated by the Government Accounting Standards Board, as in effect from time to time. If Audited Financial Statements are not provided because they are not available on or before the date for filing the Annual Report, the Issuer shall promptly provide them to the Repositories when available. E. Renortine of Sianificant Events. 1. This Section 5 shall govern the giving of notices of the occurrence of any of the following events with respect to the Bonds, if material: (1) principal and interest payment delinquency; (2) non- payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax- exempt status of the security; (7) modifications to rights of security holders; (8) Bond calls; (9) defeasances; (10) release, substitution or sale of property securing repayment of the Bonds; and (11) rating changes. 2. Whenever an event listed in Section 5.A. above has occurred, the Issuer shall as soon as possible determine if such event would constitute material information for Owners of Bonds. If knowledge of the Occurrence would be material, the Issuer shall promptly file a notice of such Occurrence with each National Repository or the MSRB and with the State Depository, if any. 11 -3 3. The Issuer agrees to provide or cause to be provided, in a timely manner, to each National Repository or the MSRB and to the State Depository, if any, notice of a failure by the Issuer to provide the Annual Reports described in Section 4. F. Termination of Renortin2 Obligation. The Issuer's obligations under this Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. G. Dissemination Agent. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Undertaking, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. H. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Undertaking, the Issuer may amend this Disclosure Undertaking, and any provision of this Disclosure Undertaking may be waived, if (a) a change in law or change in the ordinary business or operation of the Issuer has occurred, (b) such amendment or waiver would not, in and of itself, cause the undertakings herein to violate the Rule if such amendment or waiver had been effective on the date hereof but taking into account any subsequent change in or official interpretation of the Rule, and (c) such amendment or waiver is supported by an opinion of counsel expert in federal securities laws to the effect that such amendment or waiver would not materially impair the interests of Owners. I. Additional Information. Nothing in this Disclosure Undertaking shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of an Occurrence, in addition to that which is required by this Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of an Occurrence in addition to that which is specifically required by this Disclosure Undertaking, the Issuer shall have no obligation under this Disclosure Undertaking to update such information or include it in any future Annual Report or notice of an Occurrence. J. Default. In the event of a failure of the Issuer to provide information required by this Disclosure Undertaking, any Owner may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations to provide information under this Disclosure Undertaking. A default under this Disclosure Undertaking shall not be deemed an Event of Default under the Resolution, and the sole remedy under this Disclosure Undertaking in the event of any failure of the Issuer to comply with this Disclosure Undertaking shall be an action to compel performance. K. Beneficiaries. This Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriters and Owners from time to time of the Bonds, and shall create no rights in any other person or entity. I-4 L. Reserved Rishts. The Issuer reserves the right to discontinue providing any information required under the Rule if a final determination should be made by a court of competent jurisdiction that the Rule is invalid or otherwise unlawful or, subject to the provisions of Section 8 hereof, to modify the undertaking under this Disclosure Undertaking if the Issuer determines that such modification is required by the Rule or by a court of competent jurisdiction. Date: 2008 CITY OF BROOKLYN CENTER, MINNESOTA By Its By Its 11-5 EXHIBIT A List of Nationally Recognized Municipal Securities Information Repositories Bloomberg Municipal Repository 100 Business Park Drive Skillman, NJ 08558 Phone: 609 279 -3225 Fax: 609 -279 -5962 Email: MunisaaBloomberg.com htty /www.bloomberp-.com/markets /rates /municontacts.html DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 Phone: 201 346 -0701 Fax: 201- 947 -0107 Email: nrmsirfa.dncdata.com httn: /www.muniFILINGS.com Interactive Data Pricing and Reference Data, Inc. Attn: NRMSIR 100 William Street, 15"' Floor New York, NY 10038 Phone: 212 -771 -6999; 800 689 -8466 Fax: 212 771 -7390 Email: NRMSIRa.interactivedata.com http: /www.interactive- prd.com Standard Poor's Securities Evaluations, Inc. 55 Water Street 45th Floor New York, NY 10041 Phone: 212- 438 -4595 Fax: 212- 438 -3975 Email: NRMSIR renositorvaa.sandn.com www.disclosuredirectorv.standardandi)oors.com This list is current as of the date of issuance of the Bonds. 11 -6 APPENDIX 111 SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND MINNESOTA REAL PROPERTY VALUATION (effective through levy year 2007 /payable year 2008) Following is a summary of certain statutory provisions effective through levy year 2007 /payable year 2008 relative to tax levy procedures, tax payment and credit procedures, and the mechanics of real property valuation. The summary does not purport to be inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the complete text of applicable statutes, rules and regulations of the State of Minnesota. Property Valuations (Chapter 273, Minnesota Statutes) Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by statute, be appraised at least once every five years as of January 2 of the year of appraisal. With certain exceptions, all property is valued at its market value, which is the value the assessor determines to be the price the property to be fairly worth, and which is referred to as the "Estimated Market Value." Limitation of Market Value Increases. Minn. Stat., Sec. 273.11, Subdivision 1a, was amended in 2005. For assessment years 2005 and 2006, the amount of the increase shall not exceed the greater of (1) 15% of the value in the preceding assessment, or (2) 25% of the difference between the current assessment and the preceding assessment. For assessment year 2007, the amount of the increase shall not exceed the greater of (1) 15% of the value in the preceding assessment, or (2) 33% of the difference between the current assessment and the preceding assessment. For assessment year 2008, the amount of increase shall not exceed the greater of (1) 15% of the value in the preceding assessment or (2) 50% of the difference between the current assessment and the preceding assessment. Taxable Market Value. The Taxable Market Value is the value that property taxes are based on, after all reductions, limitations, exemptions and deferrals. It is also the value used to calculate a municipality's legal debt limit. Indicated Market Value. The Indicated Market Value is determined by dividing the Taxable Market Value of a given year by the same year's sales ratio determined by the State Department of Revenue. The Indicated Market Value serves to eliminate disparities between individual assessors and equalize property values statewide. Net Tax Capacity. The Net Tax Capacity is the value upon which net taxes are levied, extended and collected. The Net Tax Capacity is applying h o class rate p ty computed by app y n t 9 percentages specific to each type of property classification against the Taxable Market Value. Class rate percentages vary depending on the type of property as shown on the last page of this Appendix. The formulas and class rates for converting Taxable Market Value to Net Tax Capacity represent a basic element of the State's property tax relief system and are subject to annual revisions by the State Legislature. Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate, plus multiplying the referendum market value by the market value rate. III -1 Property Tax Payments and Delinquencies (Chapters 275, 276, 277, 279 -282 and 549, Minnesota Statutes) Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the various counties within the State. Each taxing jurisdiction is required to certify the annual tax levy to the county auditor within five (5) working days after December 20 of the year preceding the collection year. A listing of property taxes due is prepared by the county auditor and turned over to the county treasurer on or before the first business day in March. The county treasurer is responsible for collecting all property taxes within the county. Real estate and personal property tax statements are mailed out by March 31. One -half (1/2) of the taxes on real property is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid by their due date are assessed a penalty that, depending on the type of property, increases from 2% to 4% on the day after the due date. In the case of the first installment of real property taxes due May 15, the penalty increases to 4% or 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through October 1 of the collection year for unpaid real property taxes. In the case of the second installment of real property taxes due October 15, the penalty increases to 6% or 8% on November 1 and increases again to 8% or 12% on December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the unpaid tax. However, personal property that is owned by a tax exempt entity, but is treated as taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties as real property. On the first business day of January of the year following collection all delinquencies are subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for a tax lien judgment with the district court. By March 20 the county auditor files a publication of legal action and a mailing of notice of action to delinquent parties. Those property interests not responding to this notice have judgment entered for the amount of the delinquency and associated penalties. The amount of the judgment is subject to a variable interest determined annually by the Department of Revenue, and equal to the adjusted prime rate charged by banks but in no event is the rate less than 10% or more than 14 Property owners subject to a tax lien judgment generally have five years (5) in the case of all property located outside of cities or in the case of residential homestead, agricultural homestead and seasonal residential recreational property located within cities or three (3) years with respect to other types of property to redeem the property. After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof, then sells those properties not claimed for a public purpose at auction. The net proceeds of the sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any remaining balance in most cases being divided on the following basis: county 40 town or city 20 and school district 40 Property Tax Credits (Chapter 273, Minnesota Statutes) In addition to adjusting the taxable value for various property types, primary elements of Minnesota's property tax relief system are: property tax levy reduction aids; the circuit breaker credit, which relates property taxes to income and provides relief on a sliding income scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid, equalization aid, county program aid and disparity reduction aid. I 111 -2 Debt Limitations All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the amount remaining 9 after deducting from gross debt the amount of current revenues that are applicable within the current fiscal year to the payment of any debt and the aggregate of the principal of the following: 1. Obligations issued for improvements that are payable wholly or partially from the proceeds of special assessments levied upon benefited property. 2. Warrants or orders having no definite or fixed maturity. 3. Obligations payable wholly from the income from revenue producing conveniences. 4. Obligations issued to create or maintain a permanent improvement revolving fund. 5. Obligations issued for the acquisition and betterment of public waterworks systems, and public lighting, heating or power systems, and any combination thereof, or for any other public convenience from which revenue is or may be derived. 6. Certain debt service loans and capital loans made to school districts. 7. Certain obligations to repay loans. 8. Obligations specifically excluded under the provisions of law authorizing their issuance. 9. Certain obligations to pay pension fund liabilities. 10. Debt service funds for the payment of principal and interest on obligations other than those described above. 11. Obligations issued to pay judgments against the municipality. Levies for General Obligation Debt (Sections 475.61 and 475.74, Minnesota Statutes) Any municipality that issues general obligation debt must, at the time of issuance, certify levies to the county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an amount that if collected in full will, together with estimates of other revenues pledged for payment of the obligations, produce at least five percent in excess of the amount needed to pay principal and interest when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is without limitation as to rate or amount. Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) "Fiscal Disparities Law" The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as "Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the increase in commercial industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis /St. Paul seven county metropolitan area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and Washington Counties) is contributed to an area -wide tax base. A distribution index, based on the factors of population and real property market value per capita, is employed in determining what proportion of the net tax capacity value in the area wide tax base shall be distributed back to each assessment district. 111 -3 STATUTORY FORMULAE: CONVERSION OF TAXABLE MARKET VALUE (TMV) TO NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS Local Tax Local Tax Local Tax Local Tax Local Tax Payable Payable Payable Payable Payable Property Type 2004 2005 2006 2007 2008 Residential Homestead (1 a) Up to $500,000 1.00% 1.00% 1.00% 1.00% 1.00% Over $500,000 1.25% 1.25% 1.25% 1.25% 1.25% Residential Non- homestead Single Unit Up to $500,000 1.00% 1.00% 1.00% 1.00% 1.00% Over $500,000 1.25% 1.25% 1.25% 1.25% 1.25% 1 -3 unit and undeveloped land (4151) 1.25% 1.25% 1.25% 1.25% 1.25% Market Rate Apartments Regular (4151) 1.25% 1.25% 1.250% 1.25% 1.25% Low Income (4d) 0.75' 0.75 0.75 Commercialllndustrial/Public Utility (3a) Up to $150,000 1.50% 1.50% 1.50% 1.50% 1.50% Over $150,000 2.00% 2.00% 2.00% 2.00% 2.00% Electric Generation Machinery 2.00% 2.00% 2.00% 2.00% 2.00% Commercial Seasonal Residential Homestead Resorts (1c) Up to $500,000 1.00% 1.00% 1.00% 0.55% 0.55% $500,000 $2,200,000 1.25% 1.25% 1.25% 1.00% 1.00% Over $2,200,000 1.25% 1.25% 1.25% 1.25% 1.25% Seasonal Resorts (4c) Up to $500,000 1.00% 1.00% 1.00% 1.00% 1.00% Over $500,000 1.25% 1.25% 1.25% 1.25% 1.25% Seasonal Recreational Residential (4cl Up to $500,000 1.00% 1.00 1.00 1.00 %2 1.00%21 Over $500,000 1.25% 1.25 1.25 1.25 1.25% Disabled Homestead (1b) Up to $32,000 0.45% 0.45% 0.45% 0.45% 0.45% $32,000 to $500,000 1.00% 1.00% 1.00% 1.00% 1.00% Over $500,000 1.25% 1.25% 1.25% 1.25% 1.25% Agricultural Land Buildings Homestead Up to $500,000 1.00% 1.00 1.00 1.00 1.00% Over $500,000 1.00% 1.00 1.00 1.00 1.25% Remainder of Farm Up to $790,000 0.55% 0.55 0.55 0.55 0.55 Over $790,000 1.00% 1.00 1.00 1.00 1.00 Non homestead 1.00% 1.00% 1.00 1.00 1.00 Classification abolished for pay 2004 and pay 2005, and re- established at a rate of 0.75% in pay 2006 and thereafter. 2 Subject to the State General Property Tax. 3 Exempt from referendum market value tax. 4 Increased from $690,000 in payable 2007. III-4 APPENDIX IV EXCERPT OF 2006 ANNUAL FINANCIAL STATEMENTS The City is audited annually by an independent certified public accounting firm. Data on the following pages was extracted from the City's comprehensive annual financial report for fiscal year ended December 31, 2006 (the City's comprehensive annual financial report for fiscal year ended December 31, 2007 is not yet available). The reader should be aware that the complete financial statements may contain additional information which may interpret, explain, or modify the data presented here. Copies of the complete financial statements are available at the City's offices. I 1V -1 Tautgs Radpath. Ltd. Certified Public Accountants and Consultants INDEPENDENT AUDtfOR'S REPORT To the Honorable Mayor and Members of the City Council City of Brooklyn Center. Minnesota We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Brooklyn Center. Minnesota, as of and for the year ended December 31, 2006 which collectively comprise the City of Brooklyn Center, Minnesota's basic financial statements as listed in the table of contents. These financial statements am the responsibility of the City of Brooklyn Center, Mirmcso ti's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Gowrrnmmt Auditing Standards, issued by the Comproller General of the United States. Those standards require tiro we plan and perform the audit to obtain reasonable assuraince about wbodw the financial statements are 5+ee of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial stets. An audit also includes assessing the act ouwmg pnncipies used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We belim that our audit provides a reasonable basis for our opinions. In oar opium, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the busittess-type activities, each major fund. and the aggregate remaining fund information of the City of Brooklyn Center, Minnesota, as of December 31. 2006, and the respective changes in financial position and when applicable, cash flows thereof, for the year then ended in conformity with accounting principles genially accepted in the United Stares of America. In accordance with Government Auditing Standards, we have also issued a report dated May l4, 2007 on our consideration of the City of Brooklyn !Center. Minnesota's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and gratis agreements and other matters. The purpose of that report is to describe the scope of our testing of iruemal control over financial reporting and compliance and the =suits of that testing, and not to provide an opinion on the internal control over financial reporting or on eomplianm. That report is an integral part of an audit performed in aceordanc a with Government Audimig Standards and should be considered in assessing the results of our andiL The Management's Discussion and Analysis and the budgetary comparison information as listed in the table of contents, are not a required part of the basic financial statements but are supplementary information required by wmmtimg Principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted ptiruipally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Brooklyn Center. Minnesota's basic financial statements. The introductory section, combining and individual noumajor fund financial statements and schedules and statistical section are presemed for purposes of additional analysis and am not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedut es applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. HLB TAUTGES REDPATH, LTD. White Bear Lake, Minnesota 6 May 14, 2007 1V -2 I CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF NET ASSETS December 31, 2006 Governmental Business -Type Assets: Activities Activities Total Cash and investments S 46,841,797 S 7,372,031 S 54,213,828 Receivables: Accounts 255,711 1,877,302 2,133,013 Taxes 483,211 483,211 Special assessments 3,186,932 353,430 3,540,362 Internal balances 968,218 (968,218) Due from other governments 138,030 93,811 231,841 Prepaid expenses 500 177,281 177,781 Inventories at cost 29,971 558,746 588,717 Assets held for resale 4,258,800 4,258,800 Restricted assets: Cash and investments 234,210 234,210 Capital assets: Nondepreciable 5,969,410 5,112,433 11,081,843 Depreciable 30,731,726 33,136,063 63,867,789 Total assets 93,098,516 47,712,879 140,811,395 Liabilities: Accounts payable 470,898 256,035 726,933 Contracts payable 224,9I3 180,247 405,160 Due to other governments 8,649 646,836 655,485 Deposits payable 242,860 242,860 Accrued salaries and wages 281,676 40,183 321,859 Accrued interest payable 481,718 481,718 Unearned revenue 44,885 124,904 169,789 Liabilities payable from restricted assets: Deposits payable 234,210 234,210 Compensated absences payable: Due within one year 96,425 96,425 Due in more than one year 867,823 867,823 Health insurance liability: Due within one year 85,700 85,700 Due in more than one year 2,467,636 2,467,636 Bonds payable: Due within one year 2,540,000 2,540,000 Due in more than one year 25,410,000 25,410,000 Total liabilities 33,214,533 1,491,065 34,705,598 Net assets: Invested in capital assets, net of related debt 28,191,206 38,248,496 65,304,632 Restricted for. Debt service 6,789,753 6,789,753 Tax increment purposes 20,847,712 20,847,712 Unrestricted 4,055,312 7,973,318 13,163,700 Total net assets S 59,883,983 S 46,221,814 S 106,105,797 The accompanying notes are an integral part of these financial statements. IV -3 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF ACTIVITIES For the Year Ended December 31, 2006 r Net (Expense) Revenue and Program Revenues Changes in Net Asset Operating Capita Primsty Government Charges For Grant and Brant and Govarenental Business•Type Functions/Ptoatams Expenses Services Contributions Contributions Activities Activities TOW Primary government: Government activities: S (2,562,435) m General government S 2.936,638 S 289,203 S S 85,000 S (2,562,433) S Public safety 8,039,356 800,408 688,023 (6,550,925) (6,530,925) Public works 2,087,259 259,273 2,117,851 289,665 289,863 Community services 123,172 (123,172) (123,172) Parks and recreation 2,565,364 665,332 3,899 (1,896,133) (1,696,133) Economic development 2,567,377 164,531 56,966 (2,345,880) (2,343,880) lnterestonlong•terrrtdebt 1,184,017 5.900 (1376,117) (1.178.117) 2,178,747 748,868 2.208.751 (14,366.7971 (14,36b,797) Tow government activities 19.503.183 Business-type activities: Municipal liquor 970,260 1,244,736 274,478 274,478 Golfcaurse 282,416 2$0,444 (31,974) (31,974) Earle Brown Heritage Center 2,439,709 2,168,861 (270,848) (270,848) Recycling and refuse 243,853 242,388 (3,265) (3,265) Street light utility 161,219 221,341 270,326 270,328 Water utility 1,635,847 1,906,375 Sanitary 0.343 (0,143 nitary sewer utility 3,176,426 3,186,369 Stonn drainage utility 950.425 !.323.607 373.182 373.162 Total business-type activities 9,862.157 IO.S44.523 662,366 682.366 Toil primary government S 29. 365340 0 S 12. 723,270 S 748,.886 S 2.208151 (14,366.797) 662,366 (13.684,431) General revenues: 11,616,486 Property woes 11,618,466 Tax Increments 2,682,874 2,662,874 Franchise fees 638,410 638,410 Lodging taxes 738,776 738,776 Grant and contributions not restricted to specific programs 702,030 702,030 Unrestricted Investmenteamings 1,928,462 337.231 2,263,693 Gain on disposal ofespitl awl 23,963 23,963 Transfers 303.286 (303.286) Total general revenues and transfers 18.656,287 33,945 18,690.232 Change in net assets 4.269.490 716.311 3.005.801 Netassets beginning 58,112,969 45.076,297 103,189,266 Prior period adjustment (2.318.476) 429.206 (2,089,270) Net assets beginning, restated SS.S94.493 43.505.503 101,099,996 Net assets ending S 59.183,983 S 46. S 106.105.797 The accompanying notes are an Integral parr of thrse financial statements. CITY OF BROOKLYN CENTER, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2006 Othar Tax Increment G.O. Improvement Nonmajor TOW Assets General District No. 3 Bonds Governmental Governments! Cash and investments S 7,837,239 S 20,306,743 S 3,087,980 S 8,101,477 S 39,333,441 Receivables: Accounts 60,074 180,866 240,940 Current taxes 82,894 9,746 9% 9,130 102,766 Delinquent taxes 256,242 57,432 18,771 48,000 380,445 Special assessments 3,044,712 142,220 3,18.6,932 Due from other funds 410,000 410,000 Due from other governments 18,126 39,784 80,120 138,030 Interfimd receivable 262,206 262,206 Prepaid expenses 500 500 Advances to other funds 792,488 792,1$8 Asset held for resale 4,221,800 37,000 4,258,800 Restricted assets: Cash and investrnents•performance deposits 234.210 234,210 Total asset 8.509.283 25.043.307 6.132.439 9.653.307 49.360.758 Liabilities and Fund Balances Liabilities: Accounts payable 230,885 37,723 109,816 378,124 C Accrued salaries and wages 267,285 881 7,477 CJt Due to other funds 410,000 410.000 Due to other governments 4,149 4,300 8,649 Contract payable Interfund payable 224,913 224,913 Deferred revenue 263,566 4,279,232 262,206 262,206 Liabilities payable from restricted assets: 3,034,232 257,074 7,854,104 Deposits payable 234110 234.210 Total liabilities 1.000.095 4.317.836 3.034.232 1.273.986 9.649.149 Fund balances: Reserved: Prepaid hems 500 Soo Advances from other funds 489 792,488 792,468 i Debt service 3,098,227 1,104,749 4,202,976 Committed contracts 181,344 181,344 Unreserved: Designstcd, reported In: General Fund 7,508,690 Special Revenue Funds 11,316,322 7.308,690 Capital Project Funds 1,922,302 13,438,824 1,861,857 4,861,857 Undesignated, reported In: Special Revenue Funds 9,211,349 21$038 Capital Project Funds 9,423,387 (697.4571 (697.457) Total fund balances 7.509.190 20,727.671 1098127 8.377.521 39,712.609 Total liabilities and fund balances S 8.509.285 S 25.045307 S 6.152.459 S 9,653.507 S 49.360158 The accompanying notes are an integral par( of these financial statements. CITY OF BROOKLYN CENTER, MPe SOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2006 Fund balance governmental funds is different from net assets governmental activities because: Total find balances Statement 3 39,712,609 Capital assets used in governmental activities are not financial resources, and therefor;, are not reported in the funds. 34,141,021 Other longterm assets are not available to pay for current-period expenditures and, therefore, are defend in the funds. 7,809,219 Long -term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. (28,431,718) Internal service funds are used by management to charge the cost of certain activities to individual funds. The assets and liabilities are included in the governmental statement of net assets. 6,652,852 Net assets of governmental activities (Statement 1) 59,883,983 IV -6 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES Bi FUND BALANCES OOVERNMENTAL FUNDS For the Year Ended December 31, 2006 Other Tax Increment 0.0. lmprovemem Nonmajor TOW General District No. 3 Bands Govtnnmenw GovernmenW Revenues: Property taxes S 10,418,863 f f 111,874 f 994,303 f 11,523,040 Tax increments 1,609,994 1,034,150 2,664,144 Franchise fees 658,410 658,410 Lodging taxes 738,776 738,776 Special assessments 924,087 290,484 1,214,571 Licensee and permits 722,633 74633 Intergovernmental 1,269,003 39,784 1,066,908 2,373,697 Charges for services 683,968 38,250 722,218 Fines and forfeits 256,600 256,600 Investment earnings (net of market value adjustment) 239,470 881,312 106,850 374,099 1,601,731 Miscellaneous 85.767 391.529 477.2% Tow revenues 14.413.082 2.531.090 4.868.133 Expenditures: Current: General government 2,737.213 101,937 2,839,150 Public safety 7,158,112 141,730 7,299,842 Public works 1,6%,S57 120,563 1,817,120 Community services 123,172 123,172 Puke and recreation 2,176,686 33,456 2,212,142 Economic development 330,919 726,574 309,065 1,386,558 Nondepartmen W 363, %7 363, %7 Administrative services reimbursement (529,362) (529,362) Capin OuOay: General government 9,680 40,903 30,383 Public safety 18,707 3,003 21,710 Public works 13,084 2,907,008 2,920,092 Parks and recreation 12,108 12,108 Economic development 2,913,979 2,913,979 Debt service: Principal retirement 1,000,000 2,127,146 3,127,146 Interest 167,284 1,030.108 1,197,392 Fiscal agent fees 21,287 1,418 22,733 Bond issuance costs �3 30491 Told expenditures r te). 3,ti 1 6.a4a.a5a 25-808!825 Revenues over (under) expenditures 284.239 (1,109,463) (43.760) (1.9903251 (2.851.709) Other financing sources (uses): Bond proceeds 39,610 1,420,390 1,460,000 Discount on bond proceeds (445) (445) Transfers in 2,784,116 2,784,116 Transfers out (70.000) f 188 04 (253.4051 (2211,209) Total other financing sources (uses) (70.000) f 7. S 39.610 3.950.636 IMTW Net increase (decrease) in fund balances 214.239 (2.997.267) (6.1501 I. %9.931 (819.2471 Fund balances January 1, as previously stated 7,294,931 23,664,938 3,104,377 6,407,590 40.471.856 Prior period adjustment 60.000 60.000 Fund balances January 1, restated 7.294,951 23.724.938 3.104.377 6.407390 40.531.836 Fund balances December 31 5 7.509.190 S 20.727.671 f 3.098.227 f 1.377.521 S 39.712.609 The accompanying notes are an integral pars of these financial statements. CITY OF BROOKLYN .CENTER, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF ALAN CE GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2006 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances total governmental funds (Statement 4) (819,247) Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount b which capital outlays exceeded depreciation Y ceP Y P in the current period 1,417,308 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 2,107,877 The issuance of long -term debt (eg., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. This amount is the net effect of these differences in the treatment of long -term debt and related items. 1,415,000 Internal service funds are used by management to charge the cost of certain activities to individual funds. This amount is net revenue attributable to governmental activities. 132,443 Accrued interest reported in the statement of activities does not require the use of current financial resources and, therefore, is not reported as expenditures in governmental funds. 36,109 Change in net assets of governmental activities (Statement 2) 4,289,490 The accompanying notes are an integral part of these financial statements. IV -8 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF FUND NET ASSETS PROPRIETARY FUNDS December 31, 2006 Business -Tvoc Activities Governmental Major Enterprise Other Activities- Municipal Golf Earie Brown water sanitary Sewer Storm Drainage Norunajor Total Internal Total Liquor Course HeritaReCenter Utility Utility Utility Enterprise Enterprise Service Proprietary Assets Current assets: Cash and cash equivalents S 949,471 S 81,900 S 1,141,255 S 1,811,509 S 1,926,733 S 1,353,4% S 107,667 S 7,372,031 S 7,488,356 S 14,860,387 Accounts receivable net 7,780 223,561 380,020 816,289 333,141 116,511 1,877,302 14,771 1,892,073 Special assessments receivable 330,836 2,343 231 353,430 333,430 Due from other governments 93,811 93,811 93,811 Prepaid Items 21,432 5,499 500 149,850 177,281 177,261 Inventories at cost 511,212 1.784 27.101 18.649 $58.746 29.971 588.717 Total current assets 1.489,895 83.684 1397.416 2.561.534 2.989.026 1.686.868 224.178 10.432.601 7.333.098 17, 965,699 Noncurrent assets: Capital assets: Land 1,390,402 1,493,300 23,093 3,389 287,158 3,197,342 3,197,342 Land improvements 40,258 327,830 368,088 166,108 534,1% Buildings and structures 192,771 487,946 11,039,134 3,033,212 2,710,146 17,463,209 17,463,209 Machinery and equipment 111,167 11,160 195,529 128,668 179,130 625,654 6,179,996 6,805,650 Mains and lines 15,268,189 13,657,909 13,598,030 42,524,128 42,324,128 Construction in progress 677,964 658.069 579.058 1.915.091 11915.091 Total capital assets 303,938 1,929,766 13,055,793 19,131,126 17,209,643 14,464,246 66,093,512 6,346,104 72,439,616 Less: Allowance for depreciation (202.942) (239.874) (5.733.862) 10.476.013) (8,065.730) (3.124.595) 27,843,016) 3 .783.989)_ (31.631.003) Net capital users 100,9 1.689.892 7 13 9.931 ,655.113 9.142.913 11.339.651 ,248.4% .560.115 40,808.611 Total assets 1,590,891 1.773.576 8. 4 11.216.647 12,131,939 13.026.519 224.178 48.681.097 10.093.21 58.774,310 Liabilities Current liabilities: Accounts payable 123,777 560 49,712 44,359 33,577 1,607 2,443 256,035 92,474 348,509 Accrued salaries payable 9,778 1,170 16,745 7,399 3,738 1,353 40,183 6,033 46,216 Contracts payable 180,247 180,247 180,247 Due to other governments 46,916 163 18,658 634 580,465 646,836 646,836 Deposits payable 242,810 SO 242,860 242,860 Deferred revenue 485 1,600 122,819 124,904 124,904 Advances from other funds 792,488 792,488 792,488 Compensated absences payable current %,42S %,423 Accrued health insurance liability current 65.700 83.700 Total current liabilities 180,956 794.381 509.772 175,261 617.780 2,960 2.443 2.283,553 280.632 2.564.195 Noncurrent liabilities: Compensated absences payabie•long -term 867,823 867,823 Accrued health insurance liability-long-term 2.467.636 2,467.636 Total noncurrent liabilities 3.335.459 3.335.459 Total liabilities 180.956 794.381 509.772 175,261 617.780 2,960 2,443 2283,353 3.616.091 5.899.644 Net risers Invested in capital assets, net of related debt 100,996 1,689,892 7,319,931 8,655,113 9,142,913 11,339,651 38,248,496 2,560,115 40,808,611 Unrestricted 1 308 939 (710.697) $87644 2396273 1 2 71 2,46 1683 908 221 735 8 149 048 3 917 007 12 066 OSS Total net assets '3 1! 409!935 3 379.195 11 9.207`375 6 S 1. �.1� 3� 5 l3W559 '5 221535 46!397!544 �5 6t7J22 "I�S�`F7d`bSS• Adjustment to reflect the consolidation oCintemsl service fund activities related to enterprise funds (17s Net assets of business•type activities T The accompanying notes are an integral parr ojrhese Jbranclal statements. CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Year Ended December 31, 2006 Business -Type Activities Governmental Major Enterprise Other Activities. Municipal Golf Earle Brown Water Sannny Sewer Storm Drainage Nonmajor Total internal Total Liquor Course Heritalte Center Utility Udlltv Utility Enterprse Enterprise Service Proprietary Operating revenues: Sales end user fees S 5,158,987 S 250,339 S 4,260,168 S 1,881,454 S 3,092,574 S 1,323,607 463,929 16,431,058 S 1,472,708 S 17,903,766 Costof%WC3 3.922.143 2.128.9S1 6.031.094 6051 Total operating revenues 1.236.844 250.339 2.131.217 1.881.454 3.092.5 1.323.607 463.929 10379.964 2ffi Operating expenses: Personal services 469,203 130,070 881,578 377,065 148,811 39,162 2,063,889 959,207 3,025,0% Supplies 25,291 14,895 156,069 142,843 11,466 18,638 794 369,96 349,085 719,081 Other services 151,072 87,623 404,076 372,014 2,485,479 334,542 257,400 4,092,206 107,9S4 4,200,160 Insurance 11,229 7,433 44,640 12.787 5,729 2,577 3,342 87;737 49,841 137,578 Utilities 37,106 18,873 221,342 151,428 30,934 145,536 605,219 2,014 607.233 Rent 242,801 148,323 391,124 391,124 Depreciation 26.359 27,170 578.401 578.159 303.231 340.962 2.254.282 46SA91 2719773. Total operating expenses %3.061 286,064 2.434.429 1.634.2% 3.185.650 955.881 407,072 9.866.453 1.933.592 11.800.045 Operating income (loss) 273.783 (35.725) (303.212) 247.158 (93.076) 367.726 56.857 513.511 (460.884) 52.627 Nonoperating revenues (expenses); 1 Investmenteamings 37,095 2,252 46,479 67,337 106,275 70,739 7,034 337,231 326,731 663, %2 0 Special esstssments 21,502 184 21,686 21,686 Gain (loss) on sale of capital asset 30,651 30,651 Other revenue 7,894 105 37.644 3.419 93.811 142.873 35.383 178.256 Totalnonopetating revenues (expenses) 44,989 2.357 84.123 92.278 200.270 70,739 7.034 501.790 392.765 894.555 Income (loss) before contributions and transfers 319,772 (33,368) (219,089) 339,436 107,194 438,465 63,891 1,015,301 (68,119) 947,182 Capital contributions 40,903 (59,511) 324,771 306,163 168,316 474,479 Transfers in 49,000 29,755 78,735 36,542 115,297 Transfers out (125.000) (300.000) (42.826) (13.071) (176.011) (31.2 (688.2041 (688.204) Change in net assets 193.772 15.632 (478.186) 237.099 123.878 587.225 32.595 712.015 136.739 848.77W Net assets. January 1, as previously stated 1,216,163 %3,563 8,685,761 10,725,703 11,242,343 12,233,650 189,140 45,256,323 6,340,383 51,5 %,706 Prior period adjustment 78.564 147.938 202.684 429.206 429 �06 Net assets January 1, restated 1 216 163 963563 8,685 761 10 804 287 390 281 12 436 334 189140 6 340 383 22 1 Net assets December 31 '3 t'` !935• 'y 479195 3 N7171� 5 1I'UIJ96 5 11! 514!159 5 'l?03!5S9 9 "1 .733" 7'1`t...r�� Adjustment to reflect the consolidation of internal service fund activities related to enterprise Ponds 4.296 Change in net assets of business -type activities (Statement 2) S 716.311 The accompanying notes are an Integral part ojtheseJinanclal statements. CrrY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Yew Ended December 31, 2006 Business -Type Activities Governments! Mor En Other Activities- (alt a Water ba�p t bewer toh m age Nownsjor Total Internal Total Liauor Course Heritage Center Utility Utility UdIlty Eetermise Enunwise. Service Proprietwy Cash flows from operating activities: Receipts from customers and user S 5.159,152 S 250,339 S 1,203,921 S 1,807,939 S 2,910,510 S 1,273,153 S 455,209 S 16,060,223 S S 16,060,223 Receipts from interfund services provided 1,462,061 1,462,061 Payments to suppliers (1,381,111) (128,239) (3,029,654) (681,291) (1,970,070) (361,275) (429,294) (10,980,924) (449,730) (11,430,654) Payments to employees (468,976) (130,294) (879,033) (377,214) (147,615) (59,048) (2,062,180) (448,980) (2,511,160) Miscellaneous revenue 7894 37 644 3 419 43,1 41 2.873 35 383 178 236 Net cash flows provided (used) by operating activities 316,939 l 9'bS� 3 73 'i33• 9$6636 93"W sir 3TXW 3 3i L '37 r 3 Cash flows from nonapital financing activities: Principal repayments on advance (7,512) (7,512) (7,512) Transfers in 49,000 49,000 10,400 59,400 Transfers out (123,000) (300,000) (59,400) (31,2 (515,6 911) Special assessments (7,970) 445 39 (7,486) (7,486) Interfund payable 266141 q37) 932_,681 172682) Net cash flows provided (used) by nonapiW financing activities (1' S 4� (3 I S Cash flows from capital and related financing activities: Capita contributions 80,000 80,000 Acquisition and construction of capita assets (692,064) (658,069) (571,589) (1,911,722) (1,131,677) (3,053,399) Proceeds from sale of assets 16633a66669� 163 669 Net cash flows provided (used) by capita and related financing activities (692,064) 1 (tS (see w87 _L2 C Cash flows from Investing activities: Interest on Investments 37.095 2.232 46.479 67.337 106.275 70.739 7.034 337.231 326.731 663. %2 L Net increase (decrease) in ash and cash equivalents 229,054 35,651 79,357 93,731 329,450 292,619 1,663 1,061,125 47,857 1,108,982 Cash and cash equivalents January 1 720,417 46.249 1,061,898 1,718.118 1.597283 1.060.877 106.004 6.310.906 7.440.499 13.751.405 Cash and cash equivalents December JI S 949.171 f 81.900 f 1. 111233 S 1, 81�09 f 1, S 1.333.1% 7 0 31 S !07.667 S 7. S 7.488356 f 11..860.381 Reconciliation of operating income to net cash provided (used) by operating activities: Operating income (loss) S 273.783 f (35.7251 S (303212) S 247.158 f (93.0761 f 367.726 S 56.857 S 513.511 S (460,894) S $2.627 Adjustments to reconcile operating income (loss) to net ash flows from operating activities: Depreciation 26,359 27,170 578,401 578,159 503,231 540, %2 2,254,282 465,191 2,719,777 Changes in assets and liabilities: (Increase) decrease in receivables (37,947) (58,518) (182,064) (50,454) (8,720) (337,603) (5,780) (343,383) (Increase) decrease in inventories 43,088 (2 703) (1,293) 39,096 1,464 40,560 (Incresse) decrease in prepaid expenses (837) (I 510) (20,304) (22,651) (22,651) Increase (decrease)in payables (33,720) $81 $9,560 (3,776) 583,642 (5 (22,212) 578,731 57,700 636,457 Increase (decrease) in accrued e 227 (224) 2,545 (149) 1,196 114 3,709 505,360 509,069 Increase (decrease) in deferred revenue 165 (12,147) (11,982) (11,982) Other nonoperatingincome 7.894 105 X6.u37+664444 419 993, 142.873 35.383 178136 Total adjustments 43.1- 27.636 6sy0 3 Y79.71Z 4Tr l� (J�I�� YL646481 170F.W 3.706A99 Net ash provided (used) by operating activities S 316.959 S (10891 S 332.878 f 732.853 S 886.636 f 852.830 S 23.923 f 3.159.992 f 398.731 f 3.758.726 Nonash financing activities: Capita contributions S S f S S S S 5 Capita ant (102,337) 16,694 109,458 Gain on sale of assets 30,651 The accompanying notes are an integral part of there Jinanctol statements. CITY Or BROOKLYN CENTER' MINNESOTA NOTES TO FINANCIAL STATEMENTS t December 31, 21106 NOTES TO FINANCIAL STATEMNTS (Contlausd) December 31, 2006 rated In 1911 and hat operated under a Co of a mayor form of WIDE AND FUND governing body to 00 of a mayor end lour B. GOVERNMENT' FINANCIAL STATEMENTS The City of Brooklyn Center was Inc City i66 The g charter in 19, P rov ides i e., the sutefnant of fiat asuu and the aWemenatnlomfoM its since the adoption of the City cud terms The City D des a full range at hwa s and sueeu, The govammant -wide finaulei staumeMs act{v1Uas of the primary H public safety ipolto* and Bra protection). hi8 y net wets) report Intamtllon on al{ of W by taxes end (nurgovemmen+al City council members elected of the 0 to serve four -you M are supported to a algrdBcent extent on feat municlpel t ervses to Its citizens, including P finning end to parks and tpections, economic development, Senitery and rA mponent un{4. Gov+rnmentai acthllta' xtiviUa, which rely ucfegion, public Improvements p rovenuas, ere nptrrted sepentely Btnrr brartnass pia+ stofm sewer, water, and gen+el edministntiva urvkes. i pOLIClE$ aid afurgas for suppoR• Rtes of a g {van Poncdon or to which the dsoet axps generally Tlu ttatemem of aetivitias nmenv penses are those thal ere ciauly IdeMilt'b►e wi who 1 i sued in accordance with accounting Principles segraent are olltet by Progn6 Pragrom nvomra Inlude 1) Chagas to deal a glve� fltttction or I y applie Standards Board (FASB) ro govemmemal unite The fin by the Oovammen4l sptcino Ponction w aaH bene0t Bom goods, ttxvice4 a privileges pro nttoful or atcial statements the City have been Prepared Iles Financial AccouninI accepted In the United States of Am The City so app a actvilias putehase, use, or difcetfy Standards Board (()As[ ty ovemmental and businesa•tyP in level, state business type activity and 2) gratu and eoatriNttions ivityt Texasofmd othe itsms itot inluded Accounting retation$ Issue paler to December 1,1989 po lls Hlwy Ends a1 the Pond report B er►Icular Potation a Ouslttaat tyP ments end interp d level and to its Pr p capital requirefmm4 of a P {nstwd y genrro► revenues. ramtncnt•wide financial reporting Ong programrevrnuas are report Ponds. Ma}or Indlvldual at the go provided they do not conflict with or co ntradict GASB pranouneemenu. gepaae finttnid sutemenu are provided for govemmardal Ponds and u'e�ale columm in the fund The ideal t ey si g n ific a n t d of caccounting Policies ere described below. IndivWd anterprlaa Ponds as report govem 6161 Ponds and u mriior nnanalal staeements. A. REPORTING ENTITY boards and end of agencies. departments, fices that are FOCUS, s Includes all funds, organ{ullont, fnultutions, erg arau orgmi PR radons for w hich the C, MEASUREMENT US, BASIS OF ACCOUNTING, AND FINANCIAL STATE N The City Component units are legally sap ESENTATION not legally separate from the Ci the aconomk nsoureea nts, Remanr focus ty. elected O ffi c i a l s of the City e of the significance financially accoun4bie I'd us or finartclallrele Ionshtps with the The govammant -wide financial statements tea ropaAed r slangy PoRd Bnawlsl sta t em e nts, Revenues are artd the aceruat boob q! occoxMfng, as ere the prop statements of the City besignificance of their opt eyas eta recorded when a Babllity h)newred, regardless of Uw timing of City. orl of Iha li rsoorded when earned and exp�ee and special ysyrmema aro raoH a6 revenues In tM year for nent unit if It appoints a voting mgft g it Oo f'be Meted cult Bowes Property nixed as revenue as soon as alt eligibity body an d is able fo Impose lu will on the by organization t ere levied• GM4 and slmUa hems are rtwg The City Is considered fina a c co u n t a bl e is able for a compo rormed or provided by the red the provider have bun me4 organization's governing P ro j ec ts, activities, or level of services Po raquinmenu Impo by innuancing the programs, t sine financial benefits to, or impose ad using the current jinanctat resoureet mtasur +meth untlal for the organimtion to provide spa ntst Pond finarolal s4umeme as rsporl ere both organimtion, or there IS a Po O ounfi Revenues sea reeoHnlud ee eA{IeGiblavldtin the focus and Iha modt/!rd acruot bass Qratc nH• specific financial burdens on, the City- of the government's operations rind por this purpots, hoot the yew If Is inctuded st measurable and Avallebil Kavah �er� s w °f �bilities or the Current the Current pa °y as eolf nd o ected Blended Component units, although legally separate, are, In f the C ity P fhroug aurr61 period a soon enough t talmbursamanl gfanu' to be available If they A blended component unit It reported as if fl were a Pof th City govammant aonaldus all rorenuas, excep t graMS ase considered wdlabta re within 60 days of the and of ft+ ea of Ihs of Iha currant Oseel period. Brtpandlturos ganaratly are both Iha govammant -wide and fond finanfal reporting levels. they era wlleetad w{Utin one Y However, debt service axpandtturas, u A description of the City's blended compo Rent units follows: when a liability Is Incurred. as under acorud eecouMing. when psymaM Is dw. been 'rho City Count" serves as the fecaded menf Authodry (HR-4) and all expenditures for well as expandltury reload ro autms and Judgments, are ruordcd only latest Ctfy oJerooAtyn HRA The Co and app Censer Housing and Redevetoy roves the lax levy Property texas, speetal assysmenu, Imergovemrrwntei rovenws, ble ro auand w have Board of Directors far the Sp ec i a l g ue Fund. The H rtod am all ooxsidsred ro be�enuuosfPt lal asyasmaat° receivabl the NItA. The HRA Is repotted as a Special RevenRA does not issue rcpente financial due usoctatsd with the current Racal pa p the poA rlod. d for the BOA iS ruogniud as revenues of per iaraeo^ lod• y side I to be swupllblo to acmal y w` c f 1� ian receiv p the statements. Fin—W infomtatlon Ma b obtained at the City's olncas. govern boar within the U lent nseal p 6DA The H development Improvement Crry of BsooAtyn Center Economlr Drvstapm+at e Items as consldar Aufo major Community All other revenued to be meyurabu end available an the City Council, TUC council ravlews and epM bonds are taued fa fl EDA acit lit The government. nttivittea• City general obligation tax inernment finarteing bon the Tex FDA is reported In 'he Econom i velopment Block Grant SPe ic Oavelopment Aulhorhy, Bute Brown TIF Di Reve TIF Funds; r NO- Tap 11 repo tad 4, and the Communty Decs{ Revenue Funds; incremNa Bo Earle b tow HedF Ct er E Is Fund, The EDA does not to'sepuste nRencial Fund; statements. Financial Inrormation may bas obtained et Iha City's offices. 4iNAfIC TATBMI% ggpTA CITY OR 8ROOI N OtBg TO ll pecettsbar 31, BiEN't t FINANCIAL STA Z ESOTA CCOUNTING, AN it htINN eNT FOCUS, BASIg' OF A ROOI(LYN C. piZA5UR CITY OF B ANCiAL STAT RtteggNTAf 1014 (Conti -ed) twtd tyP°t nd Contra, 1 NOTES TO F1�00b health M to d, foltowln6 a iMUSa°C0 b6nsfite a bar 1. ovemr@t °t sap° asstad sbsances, he Is. Decem TBMBNT d a A44hwoallyl the 8 s cost I Irobustariant bee 42070 FINANCIAL STA Funs cca °rd too aaerutiants of thaCity On Srrvin i w COUNTING, AND fareinaf a deg t h e govemtni°' ide financi a BAS19 OF AC ovldedtootM forgo servtta Pt hss beaM1 eliminate d be alcd aa i °es ax u ditures In 1 UREMgNT FOCUS 1esNtnd sdivity ry ftported t the effeas of enaal sole ate trsrtssettoos bog" good d or p symE or the C. 4g W) A'f 10N (Continued) out Ponds: A a generil sole' this g itdsattoM. awh u S an egsam revenues nt04or Bovemme Bxcp atlom t exMl off t dicta► Pond• tt accounts f all finenalel resources swta°16°tf if they love taes would dhtohe n ant repeals the following apststfng ter in snottier fund ar sxpent o of those °hfrg the govemm mcni's pdmay untcd rood. Lena utl lcsrtts Pot goods. sery o evem those required to be «co to Collect tax Mcremants etsaxes. f s tlo i nsMe a to eualomsrs or on" n mea t. aseeps the wdtority lea Dayrrsents of vatow Ism t looiude t) ettug an63) s M -snsea rather 1n" Tha Gentral F Is 8 end for debt sery °dam revemt e entrlbustn l ottbe Ban 6ri190"' 3 Specla! Revenw Fund has unis taposled q pr 2) operating Ily &dlecatad rneura0s a sago s. e istrtcr No* m ans projects within the City provided. Intense o ssment$. Include dl faze The Tax in ofor D closes redevalop osa. ulsdon rtain u�c {al ease talr$vanaaaa -per, (101" ri ng Items. GPor which ae used for finance hick P rs pro8 a reve nues. L {kawke, gang uc an d t g. c o ng gem eoo bonds a in which lssucd for were the soma Pu'D were sold to which ate to be raveM ecru and Prod peA1 Servlce Fun jbese s bonds were for the ci services far dktbtgukh *parWt I, I ays n cnr Bonds bo nds. awers or the psovlslors M anerilly sasuh Rom Pa Tha to? P rincipal a�astdr sery g� Operiling U. wov Psoprlata Ip I ongolM ores and services, The G. e ImProvcmrnt bo slam s fed Pr fondi P ds for the payment ainstbanfi revenues and ex panse+ g ste ehagaa�dssl s ncieda t he Cost seaidential streets s t an withapsep slattxy end sxponsas not meets ImProv'o m■ such as sA fiom special sssessmena levied ag and internal rod Internal sarvla° Ail revenue pall tar wholly or in 9 rise Nnds: seer Stotes. n d intern tis funds to dw fe eUtlon on e spltal ass molor C°tem munlclpatolf sole liquor as t en R ores export$ ftpe nae as a wPeerattng revaMas and axPa em capons the following rive Boif sdrntn►saatiY6 exPeMls, The govemm d ac count$ for the operations of the Ciry'a a 9 hole execs rcbased so t 1 Liquor Fun it pot( Course, definitiat eta oMfis of less when 4t$ The A /unlclpa rot e perattoot of Ce"Crbroo D CASK AND INVFSTM S maturity otthrd m to ietary hoods have odglMl W ounts censer, (i+a Bade u veldt a 1 Ds Course Fund et s co nv e ntion liquid in S I d Po0 P The Gad d by the City eration tasetvaa end AstOaona�OM1as° The City aonsW°rs all hi l l+b and Invssarronu allocated coussa owned n histosieelly pia ,haws, M t,4 egelvalerw• All of the cash wn Center {s a P lieritago Center t Fund s ite d shat fi boa m ossaww of9041y° or less. The FA le ore loner e�l ca nter can boss eontaren tri eduge Its convention w distribution o f water to customeq. Brown N t osa (sellity treatment and modern multip P Pumping, included. d distribution ae 1n at sanhary Sawa I o Administration. s�a� l tot ,he IYatsr Ud1Up Fund accounts far the watt,, water porsBo• an g Council oilwt P.n J, MeisoP Fund accoungawage 1s tsated by pumping Sarver Utility Fund water that The Sa If sewer lines and lift s bout 6 atPois Nnd's expo Collection resent shout 62Ne a nt of sutfacs Servtas whose teas rep a Collation and 1 o Poewtolm lity Its" Fun su °ts a t. fates oral on rove eruf sbsorpdon Slott lkolnago Udfiry d eco W e an P �ti� t with loth also The St lift son ch,t wool °water r va ry does not bu lding Pon nning Olt P System. pon quantity of wrier su u all. chasMedstics of the P CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS CITY OF BROOKLYN CENTER, MINNESOTA December 31, 2006 NOTES TO FINANCIAL STATEMENTS December 31, 2006 Motel SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE4 D. CASH AND INVESTMENTS (Continued) E. RECEIVABLES AND PAYABLES (Continued) The Ctry't investment policy authorizes the Ctry to invest in the following: property tax levies are submilted to the County in December each you. The County allocates these levies a) Securities that are direct obligations or are guaranteed or insured Issues of she United Stales, (is across taxable properties in the City based on vduadons certified in the prior year. The County collects agencies, Its Instrumentalities, or organizations created by an act of cpngress, Including these levies and distributes the City's proceeds In June and December of the fiscal year. These taxes are governmental bills, notes, bonds and other securities. reported u general revenues In the government -wide financial statements In the you levied. Unpaid taxes b) Commercial paper Issued by U.S, corporations or their Canadian subsidiaries that Is rated in the at December 31 become (lens on the respective property and are classified as delinquent receivables and highest quality by at least two nationally recognized rating agencies and matures In 270 days or lesc are fully offlel by deferred revenue In the fund financial statements. c) Time deposits that are fully Insured by the Federal Deposit Insurance Corporation or bankers acceptances of U.S. banks. F. INVENTORIES AND PREPAID ITEMS d) Repurchase agreements and reverse repurchase agreements with financial Institutions Identified by Inventories In the proprietary F Minnesota Statutes Chapter I IIIA, p p tary funds us valued at cost, using the weighted average method In the Municipal e) Securities lending agreements may be entered into with financial institutions Identified by Liquor Fund and the first- In/Rrst -out (FIFO) method In the other proprietary funds. Inventories of Minnesota Statutes Chapter 1 I IIA. governmental funds are recorded as expenditures when purchased rather than when consumed. Q Minnesota joint powers investment trusts may be entered Into with trusts Identified by Minnesota Certain payments pp C Statutes Chapter I ISA p y ents to vendors fefiect costs applicable to future accounting periods and art ttcorded as g) Money market mutual funds regulated by the Securities and Exchange Commission and whose prepaid items In both government -wide and fund financial statements. p portfolios consist only of short term securities permitted by Minnesota Statutes I ISA. G. CAPITAL ASSETS h) Bonds of the City of Brooklyn Center issued in prior years, may be redeemed at current market price, which may include a premium, pilot to maturing using surplus funds of the debt service fund Capital asset, which Include property, plant p S set up for that Issue. equipment and infrastructure assets e.S roads, bridges, sidewalks, and similar items), are reported in the applicable governmenat at business -type activities Investments are reported at fair value, based on quoted market prices as of the balance sheet date. columns In the government -wide financial statements. Capital assets are defined by the government as Adjustments necessary to record Investments at fair value are recorded in the operating statement as assets with an initial, Individual cost as shown below and an estimated utefui lift In excess of one year, Increases or decreases In Investment earnings. Investment Income on commingled funds Is allocated Such assets are recorded at historical cost or estimated historical cost ifpurchased or constructed. Donated monthly, based on mamh•end balances. capital assets are recorded at estimated fair market value at she data of donation. E. RECEIVABLES AND PAYABLES infrastructure S 230,000 Buildings and Building Improvements 30,000 During the course of operations, numerous transactions occur between Individual funds for goods provided Land Improvements 23,000 or services rendered. Short-term Interfund loans are classified as "Interfund receivablelpayable." All Heavy Equipment 23,000 short-term Interfund receivables and payables ar December 31, 2006 are planned to be eliminated In 2007. Pumiture and Pomishings 10,000 Long-term Interfund loans are classified as "interfund loan receivable/payable." Any residual balances Motorized vehicles f0000 outstanding between the governmental activities and business -type activities are reported in the Technology equipment 10,000 government -wide financial statements as "internal balances" The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve assets lives are not capitalized. account in applicable governmental funds to Indicate that they are not available for appropriation and are not expendable financial resources. Major outlays for capital assets and improvements are capitalized as projects are constructed, Interest Incurred during Use construction phase of capital "sets of business -type activities Is Included as part of the The City expects to make lull collection of all trade and property lax receivables, to no allowance is capitalized value of the assets constructed. For the year ended December 31, 2006 no Interest w as capitalized in connection with construction in progress. considered necessary. MINNESOTA JOB CENTER. a►a CITY O sTATEMB NO•ftlgTD 1 2006 pecemb es twcen curtettt e1 a y pec fa ConAl s dittarc^c a y tireW a tot MI NNESOTA FUND EQUITY t si^ur s taptotant► th wltieln ate tegllms ihaiatote nst vollems hence that CENTERtE14 a A i Y OF DROOKC STATEiA T �O ias�sa Pelt is n sow eat of to Was a CIT TO FINAN na balenae s ava ilable, t batatrc° Indic on ates that 0 is net a rho► j1 bNldes. p5° ao twt rch Usdtiod nos i °a►' °e m*^° h10TE b �t 2006 st w httan e Moto m axpa s s invested In pecem sttatd �pproP pttation f^ Nt°f° tx N ts d the shod and ilabllhies. ulon Soo talght Iinn nu 8 available ap no Pts� beswaen atsels the ,1 l l V teddcp 1tC d (bf ylns ►tsysurcas for sped dlltarcttca ne t of aces sowings osu teal (continued) units. u a deP1CCteted u rcprossnt the ofCa pltal n %'or othu ed CAPITAL ASSETS the comp ^enl sissy A mo la ts1Ni %sh Np ssytu pdof 'o alt. svwsB sf tat as ,stn all repo am G. City, as wall as 2S Y°a capital all $1 tovlalon g asgb11n8 tnenw sec of the estimate use Ilves; 2S yaats ontstsndhsi b' aM scvsme ^t of those h of rcB %stlons of oshsr ov C I as wing aytim a i l b e r thrsugh Gt. st go the to110 2S Y fanf c onauuct lon tim wt thelsed Say eteditssa, g1°et an allowbla one. ft la the vsm^Y Land Imp"'amenu wells and Statesa llatla^s 1mP o imps y Rnitdlolis s" ea acct ins and lines. 1i yea`s eaketnal rcstriGis^aea as unresttict the us needed• u os yes" Acted teaowces totedayesowaei Y stalant net wets tepatt Wtlat sewetlift lmeridG uma►t tanks. h tawlt andu Iow rcsautces fit, the In penepts. bG and e4ulp°10nt tNhen polky to use aaitwa rd d sick pay CT10N ttoPond and pAachinety scion an nd. A N8A v rcvenuas It'd axpe st"af Initially sang at it DSENCE ed but unused vac atio n Absences Po a, a K iNTERFUND TR" ofeg ass acc ounted ll. COMPENgATED A eat to accumulate esm loye COm maluted. for clamp of tsvided and en' so a N fat aa en e d ute X s i r Into N^d p n as ansscAon u0 Pub1la e" Nava of Statcma^ ram 1 «mU employ t aectued in sh0 nail only it they ev Itablllty b ad aesvlaas P WOW" Wet as x teed• A whh the Pt isloos mass. a TsanaacAs^a that conlatto anotfia ih fund. era sea shat isie{mbu City's policy to P, Ieava p y pyemntentd N vast, as in %nd o i is the sod vestednls Is ravened t` gtemena. In aeeatda ComPensou tea. or "Pectea to ate s"' 1y 6PP -16 t salwraale x p a^ e A All yjCatfm these amou o Lions and 16. Accoundn8 f shat is vas o toduGiont of expo liability es rcski benefit rich leave fsttantitta n OAAP requheand e o F o n pa tyln not ssiima L of cm Stands" �tatinB tepoAsd rotas, Aetua 1 result mans Meound Klon of ccum a Qpye ita tot that Do atama^t USEOF E8TIMATE M aontosmiiY wU Zlai,tarcttwnu "CO11 a ibod iln tat attd *1 ri n 1 clot statemen ts i the g ^an e P y' of poen ss -.900.1 LJI ysvera^c ODLIGAT sletetY tWtd iYpos i fn the aPPlkabla giemlur^a ana Tlta Wes 'Ot°nmss %b h esdmstes 1. LONGTEIIIA Snaaclalstater0anu°ndweteporicdstoameoltt0 net a s►(bondjssuence, snd pifALFUND Cn s wia lend Ob li g ations %nd typo sad In the Vd° wall rasula cold THE GOV ERN D DALANCEB t the Bpy a olhet Iona opsiettury a era expo^ E fTyEEN li ill FUN acbt en a ac dvitics a�alnuttaedal an bond Premlumt 1s tape e nd discounts, osfiar lonB•tetm buriM►s• cssosts s else Issued tta whUe activhles, es well as Issuer s tae B unt of debt doll Cott withheld CERTA IN D me ntal Luna ty, lace at^s other gran A E xpyANATt ON O gEVEYIUEs. EXPE pF A� N IYiTtEB discount ants govam clod. a are tcpsAcd °S Costs, whether or not OF WIDE BTATEME fug bda^ca t n as,,a%a% atem she current debt issuance ►,scan" STAflud t YEiWILENT ndhutos. and CA%-' tandoho^B Iclme n ysats of ON111 In the tb ^a 0 our{ ^8 on nanciaB u sxpa ^diturc A pIpTHE GO po as bona Isst"L 0 eoP'emlumy recd A� v other 8 tonal B mo ot act oW m as of tsvenust, axpe s versu^a ivhies. 0 vet, in the aOutces, eas are repo repo ^ed v debt rcyvlca 1 uehongst in fund boi° tmneta wl pnandn cbt lss weeds rccdvad, yo funds and nG The govetnn+anta re in shy Bova a dste stplsys u a %panditu tes. d d t US." lives an e discounU on d so f, to G ysCOnellistlo^ bstw 1 f0d► t p olt c tivities ss p° ss assets is allocated s once Of y {wn+ %be actual dabs p Cs fat 8 ly eiassl0ed es °Oovemr^asi° lows' tynd hater sfgotKrmne ^t ei etnt tha ditto FUND mur Is is clasilited a t wlda 11na^alsi statemena taconcflldion P cost of s of till S 1417 ]Og J. In the gavemm t wtnent of aCSlvNlet the he aetalts In I'S qund linen F na equity a aaptsalotlon expanse." arse equity etary tn act ivities. eo%% equity ysGt tot P tOQ ts ovemmenul an d assets tot both 8 CITY OF BROOKLVN CENTER, MINNESOTA NOTEST FINANCIAL STATEMENTS December 3 i VNCENTEll MINNESOTA F E QSSTW EA NDFU CITY OF BROOKL ��Q AL FUND NOT.ST() FINAIWALSTATEMENTS Ag�Q)�I�sI December 31, 2006 vN'1 S f XI liaw+° A. EXPLANA710N OF CERTAIN DIFF OF A ND CHANCES S 1N d gTAgEMENt OF R 4ENDITURES, AND CHANGES IN FUND BAL ANCES V£RNMENTALFUND ANTTREGOVERNM S (1,460, AND CIIA14GES iN FUND BALANCES Dabtissued: vemm►boridt PENDiTURE TIES(Conilnued iVI demnlobligationuapra A EXPLANATION OF CER TAIN D BETWEEN THE G STATEN RE NMENT Wi S 2,931,319 875,0 ANT THECOVBRDESFATEMENTOFA� (23,905) principalrepsyme 1,090. funds (6,611) Oem ral obligation debt ovemaatbonds Caphsl outlay 1.p00A rietmy (1,413,7671 Otnerilobligatlonimp Net transfers to p ro P Oenenl ob(iptlen sax will Loss on disposal of assets Depreciation expense nt to hu", net changes in fu nd balance► cs in fund Nat adJuuma ts1 Pond► W solve at chargns In net sties► S i 4 1y "";"us: ment to Increase net chsng S 1 d 17101_ tots► g °vi "slms tots► govemtnentat funds to arWe d 1 of govemmentat atfvhfes changes In net assets of govammcnui astivities ried a revenues Tha detdls of This FWA��� rn P •LANCE �1Q����L Another element of ,t t rrsomllat aarat "Revenue rep° t as re In the lands. v In the Statement of AWtvisks that do 01' ION provide current finan res generally accepted in the S 2,101,977 diffel0ce era as follows: S (221,149) p, BUDGET Ili INFOI4MAT is cortsislent fiscal year end. with accounting P incipl a at At December 3i, 2003 Otneral property texts dcfened tevenue: 321295 Annual budgets ate adopte a o talons laps a r01tfng budgets for 'he fiscal year 2006 United Stites for all governmental funds' All annuaUpW p sax levy must be At December 31, Council funncll praPO ►ed, (40,420) rot, i the City M01lragsr submitsTto�tp pp tysad d budg 10 on she certified budget In Aug she follow lassuuy. Tha Council holds public bear P Tax increment taxes defcned revenue: 59,150 commencing Prior to September I5, for to the end of D Al December 31,1003 (rasuud) certified to d r County p to she County Ps At December 31, 2006 and levy and must submit a final levy snment. budgeted The City Council must a �ul within re wad by fund 04 d dap ds. Transfers of bug (],I95,ST4) The %pproprlascd budget u ts betwan dapill"imts as tun 1 i The legal loyal of budgetary Special assessments dcfcrred revenue: ],169,913 red amoun b the City ntsl Was. transkr of budge Meat be authorised Y the fund rinSihe Iwel Far alI Olivet govemma As December 31, 2005 departments in the almel 1 al f lotions du ye At December 31- control Is the department level for rive O Fund and ne ware no mated01l supplemental budgetary aPPtQP I aide,$, conhaeu, and rot ilstloll It s for the (2,241,5 Tha ot employed by Other defcned revenues: 4.259.100 accountiag, 'R ut which post por tion of the 01PP OP At Daember 31 nt December 31, 2006 expenditure of monies 01/41 rteorded In order W rostrve th es in fdanus the city. Neudjustmentstodecreasanetchaa6 und b es In net 2S OVER AFPROPRfATIONS EXCESS OF EX4ENDiTURFS ndhurea exceeded *PPrOpdatlons In the De ve l o pm e nt Authority total govemmentsl funds ti sieve atchang December 31, 20( 41 l 64053, the Economic D f Initi a a p t vas Oland fille assets of s°vernmcntei ac tied leans) Pa five year ended b S 3, the City terns debt (a.g•, SgA02, Ore Tax Increment District No. 3 fund y S 251,001, and a anc e of long' moot of pr of the 10 111 enact fun the repay waver, fund by S 26,363, the Tax Increment District No. 4 Nod Another element of that rccondlletltoo in 11+ issu ds as follows: while th funds. Neither "rsnssctlon, ho 1 S 110,546. provides cutleni g nancil "thee resources t 1 000 d1tfasanaa 01re term deb CO nettassets C ullen, The details of this S 1,413, has any CITY OF 91tOOKi,YN CENTER. MINNESOTA NOTES TO FINANCIAL StATEMEptTS December 31,2006 �gJ}rITY Tt3R, MINNESOTA __•.'st��{ YN CEN CITY OF ENTS BROOKE STATEM TiDTESTOF D, P� ADJUSTMENTS don (C December 31, 2006 (Continued) for 0011opment In P tinued) .tics intended inn value: of chase two fioar.slal Statements, The MB niet have been 1 A"Woriry i In M $31, 000 and the PoW. The Ecorwrttlo paveloprnan lncraased by years• These propenlas have not ban l UITY Ibnds: Oovemmantal Aettvlta has bean is {a a� a} A s }laid for iterate on the baton" sheet evalopment in 2005. TM w C. DEFICIT FUND EQ 2 �d in the following In eng.1patto° Purc property irdsnded for red Progress, axis$ as December 31, d the PIWAY ails D,net f equity 3 find p p Conatruetmplet 3 691,457 The Tax lneremaat Ditblc/ No. had e ware some sscordad N a°st, with this transaction was a tlesslQed as AssetnNdassau for Oovem+nental ANivhlss Unr o"ja stun ds: s fond balsnce ass a)ated when nsce Nonma)o +Fun tM told eostt I mtB in apitsUsinB The atfees on the beg l InG$tmctma Consttucton t,051,756 available for to s N n Iliable vdua• UFUCteNtd deficit not asstu net to ,,,a a 3 2.376,773. No, }wet overstated of Nomnayor Funds: is a dectsase s in the Tax Increment Disulct la year BmPt°yea RetiremtM Et nefit informa rsguding the recalvable bd for obtained en d. ft faced repaid from consauetian transfers .too bdanse W, 27 X 725. to The delinquent tax iMromcnu se WI scalable tntortne to nfiect the aPPtOp cseued by h lntemal tmtto olio s a will be and Intarrtal transfets. 2005. �justmant was mad Activities was da {undid Ihroug tnvesament earnings, pawmber 31. The deficits are being bond Issuance Decem of net asse d u to IM Oover+tmenisi Statements from utility funds, future The bag on the Pun DJUSTMEN this ad)uslmam, pucdon fund i the p PRIOR FERfOD A sated in the lnfrutrucN e a mane. This revenue should have bee Expenditures for dsfatred tevanue rep ns Wi4 ba Inning value of nil assets Hennepin County. t y In pilows nail as roved on she Oovemme T T rant from telmbuaemant. snd tM was iocorractb seP° snlel ActivNfea. TM u nmenf. envlro$nenul clemuP 6 the grerttr Cos o ivable at the raponad as nnsamed loven+w in lhe b 360 to roflect thB add was awarded an otwarded to u srau •-•s' In 2005, the, Ciry a In 2005. documeMsd and nt s h o uld have been recorded was lncreued by Oovemmetusl ANlvittes wst deereas "l this grant were mad in 2006• This reimburseme Inerament Dlstrl4 No• 3 rolmburtement was feeeivsd fond balance in the Tax vstquS The beSlnning Adjustments wero end of 2003. during 2006• llutton �gigy,. ENT twry banks S 60,000 to 11, thtt wcatvabla tNVESTM thole depot on capitattratlon of Infrastru ifthe proj to utility exceeds th l el heoantfertad A. DEPOSITS AND Of A only item. Policy ro act If te POM Drainage utility the malntdna deP° The City rousessed its P° mints o{ a COnsuuc Utility, onions rocontlr wt fo Mt efsr Stasuus, City honey ass members of the Feda +ei Reserve SY Ssrt)tary r the r n 'live utilities P Emerpr{se firnds at 11 Alt such depot bend, or collateral. The made to include Blithe Water Utility In Prosiest In the Bawer Ud1lry, end In ucadsnha Clry Count Insurance, surety insurance or bonds. threshold. to 200f, Construction Sanitary cti" to refled authorized by ad by sled by Waits Utility, g4, rospt deposits be U of the dept cov unit wero not rdueMof nc� the A7 In d 3 202,6 uhe iat� Ott squel 110 da osits no 54 of balaw p well u Certain �seu�Bu suit to the 20uuuctuse ►situ in Construction land to P pro)eets. The2�S. The begfnnln8 b g 78,364, 31,976, Minnesota Statutes sea d invettmettu actlbed 11,66 31, Utility funds was Increased Y market vdue of Cofiataral p $he leg dlons. Minnesota Starut td require other, Storm Drainage ro eel cos$. Authorize d wllatesd Includes evernmani obVlg Treasurer or to a fiaane the capitatiratlan of the p I and candn other state or 1tk �in6 by 'he City All truenu wets pled C4 u Collateral ba 1,14 In sa ees of 2006• 3 pledg 942 Contpoaed ed bank balm a espiteltutlon threshold. the Cit"On L lts was 2 66, started Collstsld held by on CapMllsadon of infruttucwro use ds during coon rued to Provide shat iarnlsMng at o{ depot irout wee or by pe Po licy to act if the tout excee 1 eluded ►n the City's euryine value derd depository The city .413 it its p nenu CC a cottsuucdoa p 7 mental At yesr•end wets covered by made to include all co fit �tlliry 1a+>d irens This $mount wforted cash to the I left o off CC, �o he PIlk S402.112, All balances so act. it f net value "ion ottho o use$ In the O °vim 1. 200S. the Street Ltg 2005. The beBinning $sat. the 1`641061 Raserve Dank' landing ibr a We" s at r Decembet )31, ttalitatton°C Construction in 71011 b 35,345 to loiters the cap Activities was Incises Y CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 71, 2006 NOTES TO FINANCIAL STATEMENTS December 31, 2006 Note 4 DETAILED NOTES ON ALL FUNDS Note DET AILED NOTES ON ALL FUNDS (Continued) A. DEPOSITS AND INVESTMENTS (Continued) B. RECEIVABLES As of December 31,2006 the City had the fallowing Invntmenl and mawrhlest Significant receivable balances not expected to be collected within one year of December 31, 2006 areas follows: Investment Maturities (In years) Molor Funds Le" Taxincremem special saniury Investment Type Paling Fair Value than 1 1.5 Diwkt Assessment Waur Semi Nomu)or flarrat hl 114401 W" U011" Fmds Total Federal [tome Loan Bonk Notes AAA S 8)3,161 S S 833,161 De ltnquenlpopesryuxer f 64,460 f f 1,697 f f f II,f70 f 110,112S FederdNallomlMongagsAss'nNo144 AM 987,160 987,160 Dellnqurm tax Increments 14,351 430 14,741 External investment pool• 4M Fund N/A 26,102,178 26,102,178 Special auessments 2.191.144 122.519 2.087 95.6s9 2 Money market NIA 26,470,472 26.430,472 f 64.060 14,11111 196 529 1 122.919 f 2011 1 107659 12/01211 Total Investments 54,)32,971 3_32 ,650 S 1,62D,)21 Governmental funds report deferred revenue In connection wish receivables for revenues that are not C Deposits 86,942 considered to be available to liquidate liabilities of the current period. Governmental funds also defer Petty cash and change funds 8,125 revenue recognition in connection with resources that have been received, but not yet earned. Al the end of the current fiscal year, the vwlous components of doPorred revenue and unearned revenue reported In the Total cash and Investments S 54,446,038 governmental Ponds were as follows: Unavailable Uncamed Touls Delinquent properry taxes receivable (Ocneral FunO) 1 256,241 f '1 256,241 Reconciliation to Statement ofNel Assets (Statement 1): Deliequealpopemy uses receivable (O.0.ImprovemenlBonds) 11,771 11,771 Cash, cash equivalents, andinvestmenu 34, 213,828 Delinqum pro" taxes receivable (NonnujorI") 46,212 46,212 Reslricied cash and investments 234,210 DellaqueM tax Increasers Collections (Tat lncterwDhulci No. 3) 97,432 $7,472 Delinquent in Increment eoikelbar(Noasu)or1") 1,711 1,711 Total cash and Investments S 34,448,0)6 Speelalusearments not yel due (0.O.Im, iBonds) 3,035,461 3,035,461 wee Special uessmenu not yet due (NaungwFoods) 134,514 134,91 Fear r eceived M taxa ned Wontnl Food) 7,325 7,325 Fees received but untamed (Nomnajor Funds) 36.360 36,360 Interest rate risk The City's investment policy requires Interest comings remain stable and predictable Were; rcceired but cesspool (Nonma)or1") 1,200 1,200 through at least the next budget cycle and that at last 50% of the Investment portfolio remain for two or Assets hew far routs (Tax Inarernem District No. 3) 4,221,100 4,211,800 more years with known Interest rates. The policy also slates that the portfolio shall remain suiliclenlly AuetshetdtorresaleMonaulorFnn6s) 37.000 37.00 liquid to meet all operating requirements that may be reasonably expected. Tout dekmedkeeuned avenue lot govemmemal #X45 17.109219 9 44119 Sl IS4 104 Credit risk As of December 71, 2006 the City's Investment In FNMA and FHLB notes were all rated The Cl has laa:ed a AAA by Moody's Investor Service. The City's external investment pool is with 4M which is regulated by City portion of the pollee second floor expansion was to the Local Government Minnesota Statutes and the Board of Directors of the League If Minnesota Cities. The 4M Pond is an Information Systems Association (LOGIS) as a backup computer facility. The lease has a term of six unrated 20•like pool and the fair value of the position In the pool Is the same as the value of the pool yeas, commencing on August 1, 2005, and calls for monthly lease payments based on the square- fsoage. shares. Lease revenue for the you ended December 31, 2006 was S 8,694. Future minimum lease payments are as S 8,694 annually through 2010 and S 5,072 for 2011. Custodial credit its The City's policy requires that securities purchased from any bank or dealer be placed with an independent third party for custodial safekeeping. All of the City's investments were hold In an Institutional trust under contact with the City for safekeeping services. CITY OF BItOOKLVN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS CITV OF BitOOKLVN CENTER, MINNESOTA December 31, 2006 u NOTES TO FINANCIAL STATEMENTS December 31, 2006 u Ara FD NOTLB ON ALLFIItlQB (Continued) C, CAPITAL ASSETS (Contlnued) C. CAPITAL ASSETS Depreciation expense was charged to Poactiondprograms of the prlmsry government v follows; Capital asset activity for the year ended December 31. 2006 was as follows; Govemmenul activities: S 16,734 e. lnd(y General govemmml 310 ,015 e,6611V p adv.W• nww" ada Public safety 757,097 911tW/ Af^,,,%� awwd Intr "t11 public works 259,901 ot .tu "(MUte t s LIa,t01 Parka and recreation GwldWwualaWd<p s 1.79,9" s s 3,303,W 1 ldllolo s7 t► 120!1" Capital assets hold by the g. ,tytntemallervlcefundsare 522,140 LWd 167 os: 1 s9 u► )lot 1 OiO t 7 .7.9 9. o charged to the various function based on theirurage of the assets 1f! C. W 1-01 l„pW. 0 .1611 1�.� ,nut salrltlel T ,,,ty,L,, "04"'a Total deprec eapenre•t,�. 11,691,/» 311.117 (111,071) 11,1)1,911 G01W U"u,Mln{depK0lea. 11.69Use ),40,6» awnwu/�s' u ),207,111 1.120,»1 7 »719 ols4711 6,167,10+ Busintstrypeacltvltles: S 26,339 ►W►impor.mrnu !,310,01 1, »Lill t 1111 0.11.1°+ 1:Dne 11 7 Municipal liquor 27,170 d 1291 ,i 7 6G/ u. Golfcourse 378,401 t u 70.140101 14W FiWPlowMinhdrp"uud Buis Blown Heritage Centel 518,158 7,KUt7m+dold.pullan 3. %1,TM 1.17.73! ua'71t t1 "171 44444 Water Utility 576,996 1 adld(ut.�0lmp.uKPl 1. »1,►u 1»3.w 1 ».art nsnp ).920.1» Sanitary Sower utility 540,962 Q e.11mp9rem.n. 4a +.7n iaiiI 444 1 4 t 1 storm drainage utility S 2.328, IMWoo�"ul r7" t.louu 31.1111 .2•+ 9 +iii's Total deprcclatlon expense• businewtypt activities 31uu 1117 ►69 T9W uwnwuul4p. <iuiln Il 161 14201,726 _,(.020.20, 13120111 137 T9ult.►iW 1001(1 l <p. <uul•al, t l 'ro COMMITMEN Oa.<mm.nW Uariun..11W.u.u•w, t It 190,110 61f1{tl 1/6/6101 t !166111 1 1 1 At December 31, 2006 the Ciry h construction proJeal convents in progress. The comm it me nts related to admva P dW remaining contract balances are summarized as follows: at /1mMt ►'b'w s u„ u Iww.+ a-.— Bi1ini Contract Remaining 84— M 1 Commitment Protect Amount t BWIKIPI7►t K(A(N: t )d91,111 C.pW ow w oW Mmt d.p"iald: t 1,19,313 s 3 ).1971 t t• 43,597 OM N 7,1d It 029 119 2779496 1"I 1 S 2,231,642 S c9a>1roc(onmp9rPl 1 1s,. !9'121 1 331 Centerbrook Amen( Buie 1,636,352 174,560 f0 dl Ta.l.,pul 0 111L Humboldt Avenue An Eart 6— Drive 341,342 3.186 366041 120'209 Central Salt Sto S 4.21 S Mgt Paelltq 181.343 c. 1 »,93 I,tnd19po11mmu 11,761,1!) 17,711,131 I {0. 6! (106'790) 17,613 sun6udt.n3 imporrm.nu 1 »,7 Dq..ImwtWlpK St41SI It I It.9l +.131 79.711 f61 It.91.f6! 131 N6 W.wl On M.W uMli— 9HU 1413 7$Ala7fi 2 ToW oyiWw.0. Miyd,p.dod 111,930 tRt1 KtMW d.p"1,(m rK: 201,(1 u),Ta 20,96 9,130,70 Lu61mp*r 010 1.97120 1.171,110 ntslo (190.91; 10e201 9Yi1 /y a�tpd 4n31W1�MM 163,934 41.141 1.173,101 368,914 1771 Hl p.tawtK NlipKnl logo) 19 T• 190 »I 11./17 M.1n,.n11iW. n.lot970 10r. Tow ..eueoulpp"hdm 1 170131 )1.1360,3 low "►IW .K.0 MIN aw"4 la 1161010 1!.610.10 1 a,,,{Kna,2. K0M(at uWW uKU•n., f ]79»4N S 4»206 t 11 /17 M1 2.49017 4 11213136 1165191. 1 CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS December 31, 2006 December 31, 2006 hda 4 D ETAILED NOTES ONALL FUNDS (Continued) Note 4 DETAILED NOTES ON ALL FUNDS D. INTERFUND BALANCES AND TRANSFERS D. INTERFUND BALANCES AND TRANSFERS (Continued) Individual fund Interfond receivable and payable balances at December 31, 2006 are as follows: Interfund tronsRts: Due from Due to Transfer In Transfer Out Fwd Other Funds Other Funds Governmental Funds: Major Funds: General S S 70,000 Major Funds: Tax Increment District No. 3 1,887,804 Tax Increment District No. 3 410,000 S Nonmajor Funds: Nonmajor Funds: Housing and Redevelopment Authority 253,405 Economic Development Authority 60,000 Economic Development Authority 253,405 Eule Brown Tax Increment District 350,000 Tax Increment Bonds 1,887,804 Total S 410,000 S 410.000 Capital Improvements 125,000 Infrastructure Construction 147,907 Advances to Advances From Eule Brown Heritage Center Improvements 300,000 Fund Other Funds Otter Funds Technology 70.000 Total govenmental funds 2.784.116 2.211.209 Major Funds: Golf Course S 792,488 S Proprietary Funds: Nonmajor Funds: Major Funds: Capital Improvements 792.488 Municipal Liquor 125,000 S 792,481 S 792 Golf course 49,000 Eule Brown Heritage Center 300,000 The $330,000 between the Tax Increment District No. 3 and We Brown Tax Increment District funds and Water Utility 42,826 the $792,481 advance between the Golf Course and Capital Improvements funds are not expected to be Sanitary Sewer Utility 29,735 13,071 eliminated within one year of December 31, 2006. Storm Drainage Utility 176,011 Nonmajor Funds: Interfand Interfund Street Light Utility 31,296 Fund Receivable Pevable Internal Service Funds: Central Gauge 36.542 Nonmajor Funds: Total proprietary funds 115.297 688.204 Capital Improvements S 262,206 S Total all funds S 2.899,413 S 2,999.413 Infrastructure Construction 262,206 S 262.206 3 262,206 Reconciliation to Government-Wide Statement ofActivitijs; Transfers Fund Statements S 2,899,413 Interfund payablestrecelvables are representative of lendingrborrowing arrangements to cover deficit cash Less: Government -wide eliminations (2,289,964) balances at the end of the fiscal yen. Balances will be paid with trenshm from other funds and collections Add: Transfer of assets from busineu•type activities of outstanding receivables. to governmental activities 59,511 Less: Reclauilicalon ofcapiul contributions from governmental activities to buslneu type activities (365.6741 TotalTransi era- Oovemment•WldeStatement ofAcdvides S 303.286• CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS December 1, 2006 December 31, 2006 Note t 4 DETAILED NOTES ON ALL• FUNDS Notes; DETAILED NOTES ON ALL FUNDS D. INTERFUND BALANCES AND TRANSFERS (Continued) F. LONG-TERM DEBT (Continued) ImerPond transfers allow the City to allocate financial resources 10 the funds that receive benefit from As of December 31.2006 the longterm debt of the financial reporting entity consisted of the following: services provided by another Pond or to provide additional capital and Infrastructure funding. In addition, Interfund transfers are occasionally authorized to allow redistribution of resources between Ponds for the GOVERNMENTAL ACTIVITIES Finer most efficient use of funds. In 2006, transfers from the General Fund to nonmejor governmental funds Interest Maturity Original Payable such as the Technology Fund allowed excess fund General Fund balance to be put to use In ways that Rates Dace Data lung 12111106 would reduce the need for taxes or other sources of public funds in the nonmsjor funds. Transfers from the General Obltgadon Bonds: Storm Drainage Utility and Street Light Utility Ponds to the Infrastructure Construction Fund were used to Police anti Fire Building Refunding Bonds 2.00%035% 12101/100/ 0210110061 S 5•04S.000 S 4,460,000 Pond certain street construction projects. Included in the transfers In the Water Utility, Sanitary Sewer Utility and Central Garage Funds is the book value of assets that were 19400cesed during the year. G.O. Tax loeremrat Bonds: E. OPERATING LEASES Ta xabiaTaxtnaemns refunding Bonds 812W4 2.15%-1.40% 12AIr1001 DI101A011 2.410,000 2.060,000 Taxable Tax lnatment Bade of2004 4.73WS.125% 11101/2004 02101/1020 17141.000 621 TOW 0.0. Tax triter rtaBoat 19.711.000 1. The City leases space Ibr Its municipal liquor stores. The leases are both ten -year leases and began In 2000 0 O I and 2003. Both losses have options for 6 ten-year extension. The leans provide for a minimum monthly '"P'o`'`"'e"t 6mdne 19961ngrorementBonde 4.1517 5.10% 1110111996 02101/1087 1.440,000 160,000 base rent payment, plus a pro•rata share of common area expenses. Additional lease payments are required N if agreed-upon revenue thresholds ate snalncd e 1"9911tnprovemB These leases may be cancelled M the City's option If th I i mprovement Bade 4.00%4.60% 1110111997 02r01A00g 1.015,000 200.000 .a City ceases liquor operations. Total rental expense under the lease agreements for the years ended eonds !.10%4.10% 121011199t 02101/2009 1,085.000 290,000 19991mporemea December 31, 2006 and 2005 was S 242,801 and S 235,174, respectively. Future minimum tent payments Gonda 4.10143.00% 1210111999 02101/201 1,513,000 615,000 2000tmpronmeMBonds 44.110144.95% 1=14000 071011011 1 735,000 315,0w under the current agreements are as follows: 20011mprovemesl Bads 2.60!44.40% 120111001 0210112012 730,000 410,000 2003 Improvement Bonds 1.4%4.00% 0IM112003 owintl13 1,105.000 1103,000 Total 2004 Improvement Bads 2.10543.68% 12101 004 021=015 1,010.000 190,000 You Minimum 2006 Improvement Roods 3.35543.80% 12NIR006 021011017 1.460.000 1.160.000 Endin Rents TOW O.O. Irnprovemem Bonds 10.725.000 5.160.000 2007 S 193,530 TOW. baled indebtedness 35,013,000 17,930,000 2008 193,530 2009 193,530 ComptatuaA absences Payable 964.141 2010 136,158 2011 93,360 Total City hdelxe NIS Iex ernunenW activttirs 1 15 8111,000 1 21914.241 2012 93,360 2013 93.360 All long -term bonded Indebtedness outstanding at December 31, 2006 is backed by the roll faith and credit 1 996.828 of the City, Including improvement and tax I i bond Issues. Bonds In the governmental activities will be retired by future property tax levies, tax Increments or special assessments accumulated in the F. LONG-TERM DEBT specific debt services fonds. In the event that a deficiency exists because of unpaid or delinquent tax increments or specie) assessments at the time a debt service payment Is due, she City must provide The City issues general obligation bonds to provide funds for the construction of major capital facilities, resources so cover the deficiency until other resources are available. Delinquent lax Increments in the construction of infrastructure, and economic development and redevelopment. General obligation bonds governmental Ponds et December 31, ware i delinquent special assessments have been Issued for governmental activities. During the year, general obligation Improvement bonds of governmental Ponds at December 31, 20006 6 were S 89, 977 wh ich is Included In the special l assessments have In the receivable balance of S 9.186932. S 1,460,000 were Issued to finance several street and storm reconstruction projects. CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS December 31, 2006 December 31, 2006 N it DETAILED NOTES ON ALL FU NDS viola d DETAILED NOTES ON ALL FUNDS F. LONG -TERM DEBT F. LONG-TERM DEBT GOVERNMENTAL. ACTIVITIES (Continued) COND DEBT (Continued) Annual debt service requirements to maturity for long-term debt are as follows: As of December 31, 2006 there wets three series of fixed rate MultiOunily Housing Revenue Refunding bonds outstanding, one Housing Revenue Development RoGnrmcing Note outstanding, one series of oovemmemel Aedvaie, Variable Rate Demand Regsnding industrial Revenue Bonds outstanding, two Healthcare Revenue Noses Yru Ending aenerd Obxaation Bonds GO. m Imic Bonds 0,0. Immow—A Bonds outstanding, and four Senior Housing Development Revenue Notes outstanding. The aggregate amount of Dcumber n Principal Interest Princios3 Inurat pd clot l muren conduit debt obligations at December 31, 2006 Is 8 33,137,709. 2007 3 390,000 f 121,619 f 1,030,000 f 111,737 f 900.000 f 162,116 G. FUND EQUITY 2001 600,000 tto 1 101,191 910,000 111,121 2009 610,000 93.993 1.095,0611 759,116 865,000 n1 .132 Net assets reported In the government-wide statement of net assets at December 31, 2006 include the 71110 610, 111.1s) 1,120,000 710.110 615,000 63,s97 following 2011 610,000 53,632 1,163,000 651,155 115,000 61,193 2012.2016 1,31f,000 16,706 6,1)5,000 2.191,113 1,310,000 111,173 2017.2020 6670000 102.300 65,000 1.233 Gov {remtnlalatllYlllO 7 1 Total 1 1,463,000 5 506235 IL30f000 bf� 97 .0 a A 5150000 a 676159 invested in capital assets, net Of recited debt: N N CHANGE IN LONG•TEllaa LIABILITIES Land 8 3,203,904 construction in progress 2,765,506 Leng•term liability activity for the year ended December 31, 2006 was as follows: Other capital wets, net of depreciation 30,731,726 Less: related long-term debt outstanding (8.309,9301 Betiming Fading Due Within Total Invested in capitol assets, net of related debt 28.191,206 Balance Additions Reductions Balance One Year OovermrKnul activities Restricted: Bonds payable. Debt service 6,789,733 Cenral obligation bonds f 3.310.000 1 S (113,000) f 1,163,000 f $90.000 20,817.712 0.0. era incnmeot bonds 19,303,000 (1.000,000) 18,105,000 1Asoj 0 Tax Increment purposes O.O. Improvement bonds 1.720,000 1.160.000 11.000.0001 5.110,000 900.000 Total restricted 27.637.165 Taalbandspapbte 2%165,000 1,160.000 (2,173,000! 27,950,000 2,310.000 Compemeled abunces 919.113 101.891 (39,763) 961,219 96.125 Unrestricted 1,033.312 Tout gavemment activity long-ism liaMilia f 30211dU f 1361191 17931.763). 1 21.911.20 f 2616123 Total governmental activities net ""is g 39® Compensated absences are liquidated by the Public Employees Compensated Absences Fund. Business -type activities CONDUIT DEBT OBLIGATIONS Invested in capital assets, list of related debt: land f 3,197,312 From time to time, the City has issued Housing Revenue Bonds and Industrial Revenue Bonds or Notes to Construction In progress 1,915,091 provide assistance to qualified private sector Antilles for the acquisition and construction of housing, Other capital ustis,netiefdsptecinlon 33,136,063 Industrial, or commercial facilities deemed to be in the public interest. The bonds or notes are secured by Less: related long-term debt outstanding the property financed and we payable solely from payments salved on the underlying mortgage loans. Total invested in espial assets, net of related debt 38.248,696 The City has no obligation of Its assets or of Its general tax base for she repayment of any of these bonds or notes. Accordingly, the bonds or notes we not reported as liabilities In the accompanying Brtanclet Unrestricted 7.973.318 statements. Upon final redemption of the bonds or notes, ownership oflhe property transfers to the private sector entity served by the bond 117 note hsua Total buslnest•lype activities net assets S 86 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2006 NOTES O FINANC AL STATEMEN CENTER, b4ttl-- �ETAISED NOTES ON �r r December 31, 2006 G. FUND EQUITY (Continued) t ental fund balances reported on the fund Reserved sn nnefal s as of December 31.2006 Include the Neta t OTH o rare 0vc ng; Governmental RISK MANAGEMENT Major Funds: The City i e xposed to various risks of loss Ornersl: ertors and omissions and natural 4lsasten. related to tons; theft of, damage to and destruction of assets; taslom Prcpaidhems Froperty and Casualty Insurance 0.0. Improvement Bonds: to S S S S00 (LMCIT), a public gatity Nsk current operating Pr through the League of Debt service Minnesota Cities Insurance Trutt Program for Minnesota cities: general s a common risk managemenF end "C e Trust Nonmajor Funds: 31098,217 QmPI °Yee y Property, automobile, mobile properly end mutne, crime. LMCIT fbr its Insu cnee ¢over e pin meeting law. The City pay+ an annual Insurance Advances to other funds by the LMCiT. a g '0 City t +u Deb m ervke Curtently, the LMCIT I: selfsualefnl g throe ptlemenpl sesestments If deemad�rrecesp 792,188 commercial companies fw claim+ 1n exea+ of varitwt amount, member Committed connects 1,101,719 Promlums and reinsures through N ponlona of the insurance policies. The amount of These deductibles i fs wnsidued Immete lei li ble W Total Brtutclal ata«ments, S 5,171,308 Wakers' COmP+nsalion coverage 4 Unresmed,deslgnakd LMCIT. TAa Ci Provided thro Major assessments if deems ys a Premium to the h a self•Inturance program shrough the Gen Funds: ROO"aty by the LMCIT. LMCIT The Ctty Is subject to Supplemental Gen eral: Reinsurance Association (WRCA) as r The LMCIT reinsures through Workers' Sup Working capital to a deductible. The City's warken' eked y taw. b Fo► worker' c prarslion Tex in crement District No. 3: Premiums are determined after Work ers' Is sets mPertsalbn, nra.Clty is not subject S 7,508,690 Considered Immaledal and cot PaknCe Is kn°wn. lively rated With this type of Coverage, final Sending; eorenentt «Corded until received w paid a amount of premiu y, is m adjusynant If an St hou sing ncremen o(,h 8,!37,211 There were no sigalBcartt reductions In Insurance from the previou Tout Tax increment Dlttrtct No. 3 2,979,067 Insurance coverage fa any of the N Econ m Funds: 11.516,322 _13 In excess of past three years. year or scetlem Economic development B. EMPLOYEE RETIRE Capital improvements MENT PLANS 1,911,502 Total 1.861,857 1. DEFINED BENEFIT PENSION PLAN PLANPLAN IM S 25.,809,371 U nreserved, Undeslgnated (dencit) All full and Cerk1 Major Funds: administered Put-lime Empl employees of the City are Covered b Special revenue the Pubtta Employees Retirement Association of Minnesota d0Bned ben PE RA the Fubtic Employees Rellrement P be plans Nonmajor Fund: S 9,211,319 Fund (PEpFP) which are ys R erin Fund (PFRP) and the Public Fm to RA Special revenue established and edministe to accordanc Capital Projects red e wflh Ml'emplo gestate, e P Yets The., and a re 'emplo retiremen Plans. Tbese 212,038 aplers 333 and 336. plans are Total 697157 FERF members belong to ehhu the Coe eve covered by $ocld Secure bini Plan or the Basia Plan. Coordinated Plan members eke Coordinated Plan. All pollee oAlcertPBreB a ier�i s era not. AB new 5.w- 87 2 $93o 1 j by ratuta en covered 8k and ease o m bera must paniNpete to I+Y the pF.PFP. P fieen who quetlly fiat membenhtp PFRA provtdea +atlrameat beoents as well ea disability beneftU to member, crsdited servlce1 The deftnedrrtttBiemanls era eatub)bhed by 8tsta Brsltrte, end beneftn to survlvon 1 °Y rave successive years of Allowable earvanu ere based on member's veal aflar Three years or ce. age, and yeats ofc«dit al terminal of average salary for NOTES TO FINANCIAL STATFMENTSNESOTA Dacamber3 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS r r December )1, 2006^ H. EMPLOYEE RETIREMENT PLANS Will n� sr INFORh1AT 2, PEI1910N PLAN BROO.KLYN CENTER FIRE DEPARTMENT RELIEF �e S j CeatIReed) ASSOCIATION B, EMPLOYEE RETIREMENT PLANS the City of DEFINE I, D BENEFIT PENSION PLAN the State of Minnesna. The aanlulalIy dete which (Continued} Total contribution$ to the plan In 2003 were S she St l of which nothing was levied Y c C N formed at January 1, 2003 was S 7 lbutle evious p 8 P corusibol Center d On actuarrial v lua 4 0 Per era ra h'o ees l aaeoaauled to beneltts but arebrrot contribution bead el cost of f 70,409 and adminisuslion of zero. Actual coritdbutlons hsve The hanent',ovations stated t o Yealed, terminated emp Y lass terminated their per represent$ landing for norm eontrtbulions• They Q° la" participants. y rovisions in effect s1 the time they apply to active p aunt cleats N higher level, to allow for a uuuitlon to a daA d contribution plan Ia the Br►ure. These et tae bound b the P higher p►ymanu are trrevoeabla and do nos affect the level of iWura city recelving them Y aired I service• writing a PERA, consthuts an assat of the Ctty. publicly available lo%ocle report that Includes financial byanu an d req PERA Issues a P 'Port b 6St,296.7460 or g00.632- The info I publicly aval P£RF sod PEPFF. That repo calling Trmailon below (s the Most recent data available. 1gfJ003 supplementary St. Paul, Minnesota, SSI03.2066 or y b ealmellwd 60 Empire Drive Suite 200. AcNniel vatuallondow Entry age normal 9026. Actuarial cost rnethad 1Ave1 doll,, amount monlud Amorttsarion method on closed basis OL 1CY Th l year$ r "a th N member and Rcma rial's u"I the sW leglsfu� 3letutes.iPERF Has Plan me to A wumpitons: S.OSi compounded lousily Statutes Chapter 353 seta the ,alas for emp end employ$$ contributions- statutes era estabiishe lhasamount required by dvuunanualaof%W S.00Si the, pc ion pilot eq ns rail: 11,78'/. For Haslc DbcounUSte fa Obligations N a pp licable Coordinated Plap£PFFmremhenusarr 9utr�toiontributa 7.10% oftheir payrol. 11.dtn {arynnrna proJededaaiaryincreases None art covered salary• rcentogas of m e mbers, 1 pay ksble City Is required to contribute the (allowing tM sending December 31, ponredremmtbeae NetapPi to acs Reilrement Fund for the Y ctivaly. The City's tn0arfon Mc Pier s req arm bar +tong o public Emp Y Plan PERF and S or he r spar PPFF mean er cars ending December The City' 31, 2006. 2006, 2005, and 2004 were 1 763,374, f sod pit 6, years a The City's contributions contributions to the Public Employees Pollee and Flra fu 61. re spe c ti vely' stele dstute, raOND lNPORM A7JSI 9 2003, end 2004 were S 318,913, $274,868.611d$2 84, eta o act by ware equal 10 iha contractually raqulred contrlbuilons for each y Thus yen Tread informailen T. PENSION PLAN BROOKLYN CENTER FIRE DEPARTMENT RELIEF al Percentage Net Atmu of APC pension ASSOCIATION Year Pension n" u1 "N Fjtdlnj Cant APC arnnent Relief A 0v da retirement plan (the The City contributes to the Brooklyn Can to «rte00temenl sYalam top g 124;123 IN% 8 03 t00% 138,991 which is the administrath1e of the City who ere members of the Association. 'rho Association issues 12131120 12I31R084 tom Plan) to volunteer nreng imtl200S 134,316 a nnancla report which is available at City 0 rm4l)J P t l Y AND AN_131�A asses through axes et the direction of The City levies Property r and for the San e statutes. The minimum I" levy sate at y al vies Pr pe the Plan, sit 10 acc°idanca whh en yer obligation is the un the contribution requirement for iha year toss anticipated state ads. Yf4 CENTER' MINNESOTA a CITY OP BROOKE NOTEg TO FINANCIAL STATEMENTS D,66tnber 31,206 NOTESTOF NAN IA STATEMENTgNESOTA NCENT LIAgIL,IT163 (continued) follows L;, CONTi bar 31.2006 10 ea December 31.2 tstu+ding at Decstn A s chedule otlha notes ou interest Maturity Amended 1213112006 Rate Date Original S 6 Salutes TIREMENT PLANS EN T RELIEF Pdna 8.00% 1131/2021 B. EMPLOYEE B RE R FIRE DEPARTM Nita S 2,220. ROOitLYNCE S 2.424,1" 2 PENSION PLAN Continued) AMU In Twin W:esBusirtes6Patk Il determiocd that ASSOCIATION Council (MCES1 sewer system wag of Ills Met" opollun Pop Execs of $Y110n— U V rvkes Olrislon t Project area Mto Iha senifary ar M i lUnNndcd The Eaviroameat° Rim a radamdexotl Rom the to In *4 G t pctuatid funded o undwaler PmnPad of 66u.tnsta to 1989. a six Y e tlmaud value Actuarial /+=clued Accrued Ratio ConumVnekd V diSerepoy an 8 Tls minimun' pcmuid ctuar of LUElltt" not cc Included In while *0 aceoun /MB be [eaowwaly so at The mina m valuation NKU Llsbilit saw et collection system. �toum that may d la tthihe sea be Waived i P 0 i10.30Y. expels s issue to Iq [solved 1n 2009• Date S 120,10 Imposed by Suta ataNUS o� S'6Q46S and u S 2,172,102 529,619 of the tlSbi ►ity 10 be 53,867. 7M ItY I ILltf3AI $3.09],905 5 11 /,]6S S25A LTHCAREB 14 IM50% liability titheCity 3,164,101 1176,225 IIEAITS the City Council 12110 rs 3,701,]59 EMPLOYME r the qulremems of 0 0 tion of 17/3112005 P. POSt 1 e health too benefits, as Pe fa have th a rwn The City has provided Post•emp oY u s tns j996 F- the Ci Full time amp o e Ili pay the slag' Pa (heir de i p "Suter p{en tbt w 63 t ago seiner ant tacoma wh►cIlever is ral sovemm (#solution, ter ceruln r tM ,s health for Media"$ co t o al+aiI be paid by N GE REBATE a to th° Cede the expeudlture of Ills membership is oil m is plot i C. pRBITRA ovcmmtntat entitlts to p Y din8 oral de rsulnln8 ls the utho additional cost for ibtrt Y let vemc C3 i ultes 8 excess of Intelsat cost,ipE11 govemme de issued Ill all" until Such tlrtte time Rungy a°vasag the 41ry a full on for Rctomt Act Of 1986 rcq dcsites to con employee stn q ulremaots f o mar le" The Tax the issusnee of debt itnown as arbhraga) app if the ratt(#e That* are two methods mwh mud an amp meal eligibility ,sq or any eune4 on the proceeds Rom [etitema. suss 0t age, dlsabflity, who ulrtd to the tetlre to the City. date ,f M e4uc fits bas for the last nds. Thts rebate of interest Income ills employee- VBRA whho°t reduction of baf em {oyrd RIB time t y the we refiring a s al bonowcd Po 1986. 200 and thetefou is rcq must have boon P pension Rom PBRA aper AOBust 31, sus 1997 and ovemmeM, The extent of the annuity t he employe 1 Addhionetly. a p el ves ere! 8 lnebls at IS' time. teducdan. In addition, lve date of eedremen at6 eli gible to teCe vafoorPs� h realer then SS million of 4wthose Issues bond lsfiu Is not dNcrm eau pt ro rho ive a City tau a annuity y dt The City issued 8 ate,Ill 6,nsectttiva y P eOn1C SUtive service with a health In Iha City's COW P tlrement cult tY e (#bates an the [emafnln8 woutd bs unto twoM_fjVe years of stning membership It a Rt11 -ts the 1tire b ,abate exces Info] erbivag i nc o me IOW A$ such ltebttby ton of rat tetI is eligible 10 14 imc until such time *a 1 City's Itabiltri inton of Ma'llement, any shall have Ills opt CRy will pay the aingla Parson p WI"" to this ptograaa However, in the oQ will Pay Iha P10Arlum unto such time ls Iha ever is sowtef. employees smtot 4001 not a %Peet eove a or atu a8a b5, wblshev PEBA or PEPFF. Atlhat aid health D. LITIGATIO R condition ur results of e ligible for Medleove The coat otClty P lusty. 001 claims In the aomtat cf on the City 5 Mensg a voluntary bas anlcipata in this PtoBra an d S 60,467, t0l'so The City is subjeef to Certain fag i ees eunemly2 SA 200! was S 15,713 of Ills Pond• Me S 2,533, will hevc a matstlal imps 2006. Gulp Oy the resolution of these c=alms ere Ptamtoo, th, tit yew ended December 31, invest", ewnetB As of Deember 31, 2006. b,stg with htv I CIri's best estimsfe of the uro opestlons. id on s pay ermined amount: ,rut the City will fund Mobilities ate !s liability Is n en actuutally del E, CONTINGENT "Aill"TI €S tevaided ls a ot Whether Payments will occur d lls USbtltty. ems (#d into two limited Iax Incr Vot es lnerement w i t h developers w an I lain h Ct Y roceivin8 I" to May I ate depen not been dent on the ri Pay the developets a Percis 1,5 ivredi t5ble lines a11xp ayments this ilebillty has recorded In the Is udeveloper's project. As such, amount of the payments otcnt ]lability ends whh the dece"1111"t{On otthe tax Int(#ment dlsu ct. t anclal state mants. f Any p 6 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2006 Note 5 OTHER INFORMATION (Continued) G. JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS The City has several agreements with other entities that provide reduced costs, better service, and additional benefits to the participants. The programs in which the City participates are listed below and amounts recorded within the current year's financial statements are disclosed. Local Government Information Svstems Association LOGIS) This consortium of approximately 30 government entities provides computerized data processing and support services to its members. LOGIS is legally separate; the City does not appoint a voting majority of its board, and the Consortium is fiscally independent of the City. The total amount recorded within the 2006 financial statements of the City is 332,134 for general services and application upgrades provided. Costs were allocated to the various funds based on applications and/or use of services. Complete financial statements for LOGIS may be obtained at the LOGIS offices located at 5750 Duluth Street, Golden Valley, Minnesota 55422. LOGIS Insurance Group This group provides cooperative purchasing of health and life insurance benefits for approximately 45 governmental entities. The total of 2006 health and life insurance costs paid by the City was 1,065,662. Complete financial statements may be obtained from Stanton Group located at 3405 Annapolis Lane, Plymouth, Minnesota 55447. The Brookivn Center Fire Denartment Relief Association (the Association) The Association is organized as a nonprofit organization, legally separate from the City, by its members to provide pension and other benefits to members in accordance with Minnesota Statutes. Its board of directors is elected by the membership of the Association and not by the City Council. The Association issues its own set of financial statements. All funding is conducted in accordance with applicable Minnesota Statutes, whereby state aids flow to the Association, tax levies are determined by the Association and are only reviewed by the City. The Association pays benefits directly to its members. The Association may certify tax levies to Hennepin County directly if the City does not carry out this function. Because the Association is fiscally independent of the City, the financial information of the Association has not been included within the City's financial statements. (See Note 53.2. for disclosures relating to the pension plan operated by the Association.) The City's portion of the costs of the Association's pension benefits is included in the General Fund under public safety. Complete financial statements for the Association may be obtained at the City offices located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430. H. SUBSEQUENT EVENT In March 2007, the City of Brooklyn Center Economic Development Authority purchased the property at 1501 Freeway Boulevard for redevelopment for the purchase price of 3,804,306. This property will be recorded in the Tax Increment District No. 3 fund as Assets Held for Resale at cost, not to exceed net realizable value, until the property is sold. IV -26 sV S essiOu A enda AGENDA CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION April 28, 2008 Immediatel Y g g City Following Regular Ci Council and EDA Meetings Which Start at 7:00 P.M. City Council Chambers A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. ACTIVE DISCUSSION ITEMS April 28 1. Brooklyn Center Fire Department Annual Statistical Report 2. Property Foreclosure Strategies Overview 3. Brooklyn Center Youth Collaborative 4. Brooklyn Bridge Engaging Youth Initiative 5. Code Enforcement Ordinance Enhancements 6. Gov QA Roll Out 7. Centennial Celebration Committee Final Comments Pending List for Future Work Sessions May 2008 1. Rental Strategies Report 2. Watershed Management Organization Taxing Authority 3. 2009 Budget Planning Process 4. Shingle Creek Waterway Plan Update 5. Maintenance Funding for Three Rivers Park District Trails 6. EBHC Water Tower Project 7. Capital Maintenance Planning for Municipal Public Buildings 8. Franchise Fee Agreement Amendment June /July 2008 1. 2011 Brooklyn Center Celebration —Status Report 2. 2009 Council Goals Status Report 3. TIF Districts Update City Manager Work Session Agenda Item No. 1 City of Brooklyn Center A Millennium Community MEMORANDUM COUNCIL/EDA WORK SESSION DATE: April 10, 2008 TO: Brooklyn Center City Council/E FROM: Curt Boganey, City Mana� SUBJECT: Fire Department Annual Statistical Report COUNCIL ACTION REQUIRED This report is being provided as information only. No Council action is required. The Chief will present and respond to any questions the Council may have. BACKGROUND Information Report COUNCIL POLICY ISSUES Does the statistical report meet the reporting needs of the City Council? worksession.fire. statisticalreport.041208.doc C: Lee Gatlin Recreation and Community 6301 Shingle Creek Parkway .Y Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityolbrooklyncenter.org BROOKLYN CENTER FIRE DEPARTMENT ANNUAL STATISTICAL REPORT 2007 WITH Mission statement The mission of the Brooklyn Center Fire Department is to deliver to our community the highest quality fire, medical and emergency services. f NIEF B Center Fire Departm �LYN Office of the Fire Chief F, fD March 24, 2008 Mr. Curt Boganey, City Manager City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Dear Mr. Boganey, It is our pleasure to publish the 2007 Statistical Report of the Brooklyn Center Fire Department. The dedication and passion of our 35 personnel are two key factors to a successful 2007. We are part of a team that responds 24 hours a day, 7 days a week, and 365 days a year. In 2007 we responded to 1063 calls for service. This represents a 3.8% increase in call volume over 2006. Our average response time is 6 minutes, 31 seconds. The Brooklyn Center Fire Department trains one night per week and we staff one station every night and 24 hours a day on the weekends. We continue to work diligently to provide the highest quality fire, medical and emergency services to the citizens and business community in Brooklyn Center. Sincerely, g Chief Lee Gatlin and the Brooklyn Center Fire Department 6645 Humboldt Ave North, Brooklyn Center, MN 55430 Telephone (763) 503 -3160 Fax (763) 561 -0717 Emergency Fire 9 -1 -1 CITY OF BROOKLYN CENTER MAYOR Tim Willson CITY COUNCIL Kay Lasman Mary O'Connor Dan Ryan Mark Yelich CITY MANAGER Curt Boganey BROOKLYN CENTER FIRE DEPARTIVIENT CHIEF OFFICERS AND STAFF FIRE CHIEF Lee Gatlin, Jr. ASSISTANT CHIEF Gary Giving DISTRICT CHIEFS CAPTAINS TRAINING OFFICERS Jeff Frybarger Todd Berg Joseph Faust Kent Korman Joe Faust Aaron Surratt Jeremy Hulke Greg Jones FIRE EDUCATION OFFICERS John Polz John Winkelman BUD West West Fire Station 6250 Brooklyn Blvd. Vision Statement Brooklyn Center, MN 55429 To be recognized by the community and our peers as East Fire Station A model of excellence in providing fire 6500 Dupont Ave. N. protection, EMS and related services Brooklyn Center, MN 55430 oil A department dedicated to continuous improvement to every detail of the ser- vices we provide A department that promotes an envi- Stats: ronment of tolerance, trust and involve- ment Personnel: A department responsive to the com- Fire Chief 1 munity's needs and concerns Assistant Chief 1 District Chiefs 2 Captains 4 Core Values Training Officers 2 Firefighters 27 We believe that our people are our most important asset. We as members, we em- Response Times: brace these core values: 6 minutes, 31 seconds— Overall re- Safety sponse time for all emergency inci- Professionalism dents 6 minutes, 54 seconds Non -duty Pride crew response time average Integrity 4 minutes, 53 seconds —Duty crew Commitment response time average Compassion Mutual Aid: Camaraderie In 2007, BCFD provided mutual aid to the Concern following cities: Caring Brooklyn Park 8 Crystal/New Hope 3 Robbinsale 2 Minneapolis 1 i 2C)07 ORGANIZATIONAL -CHART CEN TER FIRE DEPAR 13R OOKLYN FIRE CHIEF �CECUTIV ASSISTAN I ASSISTANT CHIEF FIRE( ACAN� RS I TRAINING gISTRI Stat on DISTRICT CMEF East station CAPTAINS (2) CAPTAINS (2) F IREFIGHTER S FIREFI (1 G SWORN PERSONNEL SUMMARY TOTAL SWORN PERSONNEL 37 Total Minority Z 2.7% Total Males 36 97.3% White 35 94.6% Black 1 2.7% Total Females 1_ I 2.7% White 1 2.7% Protected Class 2 5.4% i 2007 Incidents (Includes Mutual Aids) FIRE INCIDENTS Fire, Other 3 Building fire 42 Fires in structure other than in a building 1 Cooking fire, confined to container 19 Trash or rubbish fire, contained 1 Fire in portable building, fixed location 2 Passenger vehicle fire 25 Natural vegetation fire, Other 6 Grass fire 21 Outside rubbish fire, Other 1 Outside rubbish, trash or waste fire 1 Dumpster or other outside trash receptacle fire 6 Special outside fire, Other 2 Overpressure rupture, explosion, overheat other 3 Excessive heat, scorch burns with no ignition 7 Dispatched canceled en route Fire 12 Total Fire Incidents 152 EMS /RESCUE INCIDENTS Rescue, EMS incident, other 107 Medical assist, assist EMS crew 10 EMS call, excluding vehicle accident with injury 169 Motor vehicle accident with injuries 5 Motor Vehicle Accident with no injuries 5 Lock -in (if lock out, use 511 j 2 Search for person on land 1 Extrication, rescue, Other 1 Extrication of victim(s) from vehicle 1 Removal of victim(s) from stalled elevator 3 Water ice related rescue, other 1 Dispatched canceled en route Medical 75 Dispatched canceled en route PI 6 Total EMS /Rescue Incidents 386 ALARMS False alarm or false call, Other 4 Malicious, mischievous false call, Other 7 Central station, malicious false alarm 6 Local alarm system, malicious false alarm 2 Bomb scare no bomb 4 System malfunction, Other 2 Smoke detector activation due to malfunction 4 Alarm system sounded due to malfunction 72 CO detector activation due to malfunction 2 Unintentional transmission of alarm, Other 2 Sprinkler activation, no fire unintentional 5 Smoke detector activation, no fire unintentional 10 Detector activation, no fire unintentional 5 Alarm system activation, no fire unintentional 116 Carbon monoxide detector activation, no CO 24 Dispatched canceled en route Alarm 45 Total Alarms 310 2007 Incidents (Includes Mutual Aids) HAZARDOUS CONDITIONS Hazardous condition, Other 3 Combustible /flammable gas /liquid condition, other 1 Gasoline or other flammable liquid spill 4 Gas leak (natural gas or LPG) 31 Oil or other combustible liquid spill 1 Carbon monoxide incident 12 Electrical wiring /equipment problem, Other 7 Heat from short circuit (wiring), defective /worn .1 Overheated motor 10 Power line down 5 Arcing, shorted electrical equipment 16 Vehicle accident, general cleanup 8 Explosive, bomb removal (for bomb scare, use 721) 1 Attempt to burn 2 Dispatched canceled en route Miscellaneous 7 Total Hazardous Incidents 109 MISCELLANEOUS INCIDENTS Service Call, other 2 Water or steam leak 3 Smoke or odor removal 15 Public service assistance, Other 1 Assist police or other governmental agency 6 Public service 1 Assist invalid 3 Unauthorized burning 6 Cover assignment, standby, moveup 5 Good intent call, Other 2 Dispatched cancelled en route 3 No Incident found on arrival at dispatch address 13 Authorized controlled burning 2 Steam, Other gas mistaken for smoke, Other 2 Smoke scare, odor of smoke 17 Steam, vapor, fog or dust thought to be smoke 3 Smoke from barbecue, tar kettle 1 HazMat release investigation w /no HazMat 14 Dispatched cancelled en route Mutual Aid 7 Total Miscellaneous 106 TOTAL 2007 INCIDENTS 1063 NCID R 1pot 7 ALL- CAI.I. T ZQ4 oItal incidents} k 621 Fire Calls I 41% er ous kCO alarms, Poll Miscellan gas odors, etc.) Vine pt Dive calls p.5 c 4% Mutual Aid el Injury 4% Person" 1 Medical Calls 1 7% False Atarms 32 °t° Qnse J On ly ResP 2007 Duty Crew (442 total) AL `4�.Y,.e �4 G( y S 4 3£ks s. personal Injury Calls 1 z��� i 2007 Calls by Day of Week Duty Crew vs. All -Call 140 130 120 110 100 98 9s 'G 91 88 80 78 /s All -Call Duty Calls 60 47 43 41 40 1' 34 20 0 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Number of Calls per Month, 2003 -2007 180 160 140 120 100 ®2003 2004 so -zoos 60 02006 40 02007 20 if -i i i CF Total Runs, 2003 -2007 1200 1000 Soo 600 400 200 o 2003 2004 2005 2006 2007 2007 Alarm Count by Hour of Day All Calls 60 50 40 ®AII -Call 30 0 Duty Crew 20 10 0 0 0. O 1. O ff. 0 O v. OS. 0 O> 0 1? O 9. '70. 71 7 1 0 S. '76. Zj 1 8. -1 0. 1. �1. p 0 p 0 0 00 '00 Op Op O 00 0 0 0 0 O O 0O i9 0O 0O OO OO 00 OO 00 Work Session Agenda Item No. 2 f i Work Session Agenda Item 2 Replacement Pages REVISED FORCLOSURE DATA FROM JUNE 2006 TO PRESENT 4/25/2008 12:10 PM 54 sheriff sale properties resold and reoccupied since June 1, 2006 report 3 homesteads will be removed 33 presently homestead 17 non homestead 0 5 rental licenses approved or pending single family homes 0 2 licensed apartments 0 10 undetermined owner or renter occupied 6 owned by individuals 3 owned by bank or MERS 1 redemption period ends 07/08 1 unknown status 358 Sheriff sale properties currently 135 vacant properties currently identified 91 vacant from sheriff sale 8- Sheriff sale properties have rental license. For the most recent assessment period October 2006 to September 2007 Assessed values of single family homes have decreased on average 8 percent. Assessed values of industrial and commercial values have increased about 9 percent. Expect a similar drop next year based the current review of sales from October 2007 to September 2008. Foreclosure Response Strategy Goal: Prevention, neighborhood stability, reduction of vacancies, promotion of owner occupancy, and redevelopment Action Step 1: DATA COLLECTION IDENTIFY THE DEPTH AND THE BREATH OF THE PROBLEM NUMBERS LOCATIONS EARLY WARNING INDICATORS OWNERS OCCUPPIED /UNOCCUPIED PROPERTY CONDITIONS Action Step 2: NEIGHBOROOD STABILIZATION REGULAR SURVEY AND ASSURE PROPERTY MAINTENANCE o Amend City Ordinance SHUT OFF WATER IF VACANT REMOVED RUBISH DEBRIS GARBAGE SECURE OPEN BUILDINGS o Amend City Ordinance SEEK NEIGHBORHOOD ASSISSTANCE AS THE EYES AND EARS Action Step 3: PREVENTION AND INTERVENTION PROMOTING EDUCATION AND COUNSELING FORCLOSURE BROCHURE WEB SITE NEWS LETTER LOCAL NEWS UTILITY BILLING COMMUNITY ORGANIZATION o PARTICULARLY ETHIC COMMUNITIES Action Step 4: REINVESTMENT Return foreclosed /vacant properties to occupancy /encourage home ownership. Work with realty companies to encourage and market Brooklyn Center to home buyers. Work with Greater Metropolitan Housing Fund and Utilizing TIF Housing dollars to develop a program to assist home owners Permit fee relief for home owners Down payment assistance for qualified new owners Specific Repair assistance Consider the acquisition or promote the development of properties that may be suitable for redevelop particularly residential properties in commercially zoned district i.e. Brooklyn Blvd or perhaps Humboldt O:r City of Brooklyn Center A Millennium Community MEMORANDUM COUNCIL WORK SESSION DATE: April 24, 2008 TO: Brooklyn Center City Council FROM: Curt Boganey, City Manger SUBJECT: Foreclosure Strategy Outline COUNCIL ACTION REQUIRED The enclosed information is presented as information only. No council action is required. Any comments or feed -back will be appreciated. BACKGROUND On Monday I will describe in some greater detail and respond to questions from the City Council regarding the planned strategy for responding to the vacant properties in the City in large part resulting from Sheriff Sale foreclosures. COUNCIL POLICY ISSUES Is the outlined strategy and action step consistent with Council goals and policy? 042808. foreclosure .worksession.mem.frm. docx 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityofbrooklyncenter.org FORCLOSURE DATA FROM JUNE 2006 TO PRESENT 55 sheriff sale properties resold and reoccupied 358 Sheriff sale properties 135 vacant properties 91 vacant from sheriff sale 8- Sheriff sale properties have rental license. Net change in single family home rental properties in 2008 For most recent assessment period October 2006 to September 2007 Assessed values of single family homes have decreased on average 8 percent. Assessed value of industrial and commercial values have increased about 9 percent Expect a similar drop next year based the current review of sales October 2007 to September 2008. Foreclosure Response Strategy Goal: Prevention, neighborhood stability, reduction of vacancies, Promotion of owner occupancy, and redevelopment p Y p Action Step 1: DATA COLLECTION IDENTIFY THE DEPTH AND THE BREATH OF THE PROBLEM NUMBERS LOCATIONS EARLY WARNING INDICATORS OWNERS OCCUPPIED /UNOCCUPIED PROPERTY CONDITIONS Action Step 2: NEIGHBOROOD STABILIZATION REGULAR SURVEY AND ASSURE PROPERTY MAINTENANCE o Amend City Ordinance SHUT OFF WATER IF VACANT REMOVED RUBISH DEBRIS GARBAGE SECURE OPEN BUILDINGS o Amend City Ordinance SEEK OPPORTUNTIES FOR REVDEVELOPMENT SEEK NEIGHBOR HOOD ASSISSTANCE AS THE EYES AND EARS Action Step 3: PREVENTION AND INTERVENTION PROMOTING EDUCATION AND COUNSELING FORCLOSURE BROCHURE WEB SITE NEWS LETTER LOCAL NEWS UTILITY BILLING COMMUNITY ORGANIZATION o PARTICULARLY ETHIC COMMUNITIES Action Step 4: REINVESTMENT Return foreclosed /vacant properties to occupancy /encourage home ownership. Work with realty companies to encourage and market Brooklyn Center to home buyers. WORKING WITH Greater Metropolitan Housing Fund and Utilizing TIF Housing dollars to develop a program to assist home owners Permit fee relief for home owners Down payment assistance for qualified new owners Specific Repair assistance Consider the acquisition or promote the development of properties that may be suitable for redevelop particularly residential properties in commercially zoned district i.e. Brooklyn Blvd or perhaps Humboldt i Work Session Agenda Item No. 3 COUNCIL ITEM MEMORANDUM To: Curt Boganey, City Manager From: Scott Bechthold, Chief of Police Date: April 18, 2008 Subject: Brooklyn Center Youth Collaborative I Recommendation: The following council item is for information only and no action is required. Youth initiatives are currently under development and implementation. Partnerships are being sought with other community stakeholders to have a more coordinated and holistic outreach approach to Brooklyn Center youth. The program is intended to target at -risk and disenfranchised youth who come into contact with the police department. Background: The 2007 PERF study confirmed the suspicions of police staff and other community stakeholders that the rise in violent crime, aggravated assault and robbery, were due in large part to the dynamics surrounding segments of "disenfranchised" and "at- risk" youth. In response to the PERF findings and recommendations from the facilitated PERF summit, the Brooklyn Center Police Department has initiated projects to address prevention and intervention of youth violence and criminal behavior. In addressing prevention efforts, the police department has taken a leadership role by bringing together representatives from police, probation, schools, CARS, businesses, social services, non profits serving youth, and the faith community to work collaboratively to address the needs of Brooklyn Center youth in a more effective and coordinated fashion. This initiative has resulted in a series of three meetings and has been named "The Brooklyn Center Youth Collaborative" (BCYC). The leadership amongst the stakeholders has now been diversified, and efforts to bring together this divergent set of stakeholders have shown some early progress. Current efforts are aimed at mapping out community resources and their capacities; workin Y p g on "Youth Summer Events Calendar and having a one -stop approach to youth programs and services in Brooklyn Center. By compiling the current youth program availability in Brooklyn Center, the BCYC is attempting to reduce redundancy in programming, filling identified gaps in service, and ultimately increasing the capacity to serve our youth. The BCYC's intervention project proactively addresses youth who have been identified as being community concerns due to gang affiliation and criminal activity. The police department has contracted with the MAD DADs organization to provide a Youth Outreach Worker who will work with the MAD DADS support network as well as the city's existing community and youth p ro beginning in April 2008. He will be in direct contact with identified g rams g g p at -risk youth in "hot spot" areas to connect them with services tailored to their needs, and track their progress to ensure they are receiving the required services. The Youth Outreach Worker will work closely with the police department's youth /gang officer to reduce youth violence and assist in the department's efforts to hold problematic youth accountable for their actions. Budget Issues: There are currently no budget requests related to these two initiatives. Seed h initiative comes in the form of a 12 000 funding for the youth outreach rant g from Hennepin County through the Joint Community Police Partnership. An additional $10,000 grant has been approved by Independent School District 281. The police department will seek future grant funding if the program appears to be successful. Work Session Agenda Item No. 4 City of Brooklyn Center 0:r I A Millennium Community MEMORANDUM COUNCIL WORK SESSION DATE: April 24, 2008 TO: Brooklyn Center City Council FROM: Curt Boganey, City Manage SUBJECT: Brooklyn Bridge Engaging Youth Initiative COUNCIL ACTION REQUIRED The council will be asked to consider adopting a resolution in support of creating a Joint Powers Agreement for a Brooklyn Park and Brooklyn Center Youth Coordinating Board. I BACKGROUND Two meetings have been held and hosted jointly by the Mayor Willson and Mayor Lampi of Brooklyn Park to discuss a cooperative planning and coordinating effort to for Youth Services. Enclosed you will find background informat6ion about the proposed project and a draft resolution in support of this effort. Each community and the several Educational Institutions serving youth have been invited to establish a joint powers organization that gY J P g will implement and manage the proposed program. The Mayor and I will provide further detail based on the meetings we have atteneded. COUNCIL POLICY ISSUES Is the proposed JPA consistent with the goals and objectives of the City Council? Will the benefits of participation justify the cost of time and resources associated with the proposal? 042808.youthjpaworksession.docx i 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityolbrooklyncenter.org Mayors' Round Table Discussion Agenda y g Tuesday, April 8, 2008 Brooklyn Park Council Chambers 5:30 until 6 :30pm Snacks and Beverages I. Welcome Mayor Steve Lampi, Brooklyn Park Mayor Tim Willson, Brooklyn Center A. Brief Self Introductions II. Minutes i Notes from January Meeting III. Reports Follow Up A. Inventory of current services B. Models of other cities IV. Structure A. Our Model 1. Convening 2. Building Partnerships 3. Communication B. Partners V. Next Steps A. Resolution of Support B. Joint Powers Agreement C. Youth Action Crew Results D. Strategic Plan Development OVERVIEW Proposed Joint Powers Agreement for a Brooklyn Park (and Brooklyn Center) Youth Coordinating Board PROPOSED PURPOSE: To bridge communication, collaboration, and cooperation for youth initiatives across all boundaries of government, school districts and neighborhoods in Brooklyn Park (and Brooklyn Center). A Brooklyn Park (and Brooklyn Center) Youth Coordinating Board would serve as a capacity- building group; not providing services directly to youth but rather to pursue its goals through a set of overlapping strategies for: 1. Convening Gatherinq key stakeholders to facilitate improved coordination, collaboration, and cooperation across all boundaries. Governance Board will meet quarterly for policy development and organizational decision making. Youth Opportunities Coalition (adults) and Youth Advisory Commission (youth) meet monthly to identify, develop and pursue the strategic plan of the Youth Coordinating Board. 2. Building Partnerships Supp ortinq, coordinating or leading responses to concerns, and promoting effective policies and strategies for adoption across the area. 3. Communication Analvzina and Disseminatinq Information: collecting, synthesizing and communicating accurate and timely information concerning issues facing youth and families between agencies of the city, school districts and all stakeholders. 19 Proposed Partners Governance Board Members (27 with Brooklyn Center) City of Brooklyn Park (lead organization) Mayor and City Manager Brooklyn Park Police Chief and Recreation and Parks Manager (City of Brooklyn Center Mayor and City Manager) (Brooklyn Center Police Chief and Recreation and Parks Manager) State Legislators representing this area (1 Senator, 3 Representatives) Hennepin County Commissioner and Head Librarian(s) ISD 279 Osseo Schools Superintendent and School Board Member ISD 281 Robbinsdale Schools Superintendent and School Board Member ISD 11 Anoka Hennepin Schools Superintendent and School Board Member (ISD 286 Brooklyn Center Schools Superintendent and School Board Member) North Hennepin Community College President Hennepin Technical College President Brooklyn Park Community Liaison [Youth Coalition member/ resident] (Brooklyn Center Community Liaison [Youth Coalition member resident]) Resolution No. PROPOSED Resolution Supporting a Joint Powers Agreement for a Brooklyn Park (and Brooklyn Center) Youth Coordinating Board April, 2008 WHEREAS, Brooklyn Park (and Brooklyn Center) is a city (are two cities) within Hennepin County in the State of Minnesota which is (are) served by three (four) independent school districts and two public colleges; and WHEREAS, representatives from the State of Minnesota, Hennepin Co iii" the city (cities) of Brooklyn Park (and Brooklyn Center), the Anoka- Hennepin'School District, Osseo School District, Robbinsdale School District, (Brooklyn Center School District,) Hennepin, Technical College, and North Hennepin Community College kayo met in gro up to discuss co for positive youth development; and WHEREAS, the area within Hennepin County of Brooklyn`Park (and Brooklyn Center) has been identified by Hennepin County Health Indicators as having sothe of the nation's highest levels of youth violence, teen pregnancy, adolescent obesity, school dropou "ts and juvenile crime; and WHEREAS, the State of Minnesota, Hennepin County thenity (cities) of Brooklyn Park (and Brooklyn Center), Anoka Hennepin School District; Osseo School District, Robbinsdale School District, (Brooklyn Center School District,) Hennepin Technical College and North Hennepin Community College have within their doctrines, clearly stated support for the value of positive youth development and WHEREAS, outside of the libraries, school programs and recreation and parks programs, few organizations, programs and/or servees for youth exist within Brooklyn Park (and Brooklyn Center and WHEREAS, the Brooklyn Pa Citizen Long Range Improvement Committee as well as a 2007 resident survey dearly indicated both residents and officials have expressed a desire for increased opportunities for y u "th; and WHEREAS the dev a elo ment of a Coalition for Youth has brought youth-serving agencies and >:P Y g g individuals within the ,community together for positive youth development; and WHEREAS, the Coalition for Youth is desiring of a governance group that represents all youth in Brooklyn Park (and Brooklyn Center); and WHEREAS, there has been a long standing need for and understanding of the value of increased communication and collaboration for positive youth development between departments within the city (cities) and schools; and WHEREAS increased collaboration can serve to reduce duplication of services and increase opportunities for providing unified services, as well as increase grant requesting and grant provision possibilities; and WHEREAS, the city (cities) of Brooklyn Park (and Brooklyn Center) is (are) home to a broad group of talented and committed individuals interested in promoting positive youth development; and WHEREAS, the State of Minnesota, Hennepin County, the city (cities) of Brooklyn Park (and Brooklyn Center), Anoka- Hennepin School District, Osseo School District, Robbinsdale School District, (Brooklyn Center School District,) Hennepin Technical College and North Hennepin Community College hereby strive to be models of positive youth development through the establishment of a joint powers agreement called "The Brooklyn Bridge Alliance for Youth" for the purpose of cooperation, communication and collaboration to engage youth initiatives across all boundaries, but not for the purpose of directly providing programs or services. THEREFORE, BE IT RESOLVED, that the State of Minnesota, Hennepin County, the city (cities) of Brooklyn Park (and Brooklyn Center), Anoka Hennepiii`School District; Osseo School District, Robbinsdale School District, (Brooklyn Center School District,) Hennepin Technical College and North Hennepin Community- hereby support the establishment of a Joint Powers Agreement under the name: "The Brooklyn Bridge Alliance For Youth" (hereafter referred to as the Alliance); u BE IT FURTHER RESOLVED, that the State' "of Nhnnesola, Hennepin County, the city (cities) of Brooklyn Park (and Brooklyn Center), Anoka Hennepin School District, Osseo School District, Robbinsdale School Distract, (Brooklyn'Center School District,) Hennepin Technical College and North Hennepin Community College support the Alliance's mission to "Cooperate, Communicate, and Collaborate for Positive Youth Development in Brooklyn Center and Brooklyn Park ge BEITFURTHER RESOL tli'�t h he city cities) VED, t e State of Minnesota, Hennepin County, t y p of Brooklyn Park (and Brooklyn Center), Anoka- Hennepin School Board, Osseo School District, Robbinsdale School Distract, (Brooklyn Center School District,) Hennepin Technical College and North HE epin Commuriify College Boards support the following positive youth development principles: s a. Positive youth9 deveI6pment involves the intentional efforts of other youth, adults, communities, government agencies, and schools to provide opportunities for youth to enhance their interests, skills, and abilities into productive adulthoods; b. That positive youth development is a policy development, curricular and programmatic approach that allows schools and youth organizations to infuse youth development principles throughout their programs, while supporting other educative or community development goals; c. That positive youth development is the process through which young people acquire the cognitive, social and emotional skills and abilities required to successfully navigate life. This development occurs throughout a young person's life in formal and informal settings such as home, school, religious and non religious organizations and relationships such as peer friendships, work, parenting, teaching, or mentoring; d. Each partner within the Alliance will continue to provide positive youth development under their own individually established policies; and this Alliance will only be used for the purpose of increased cooperation, communication and collaboration in the pursuit of an area -wide fulfillment of positive youth development; e. Buildings belonging to members of the Alliance may be utilized at the discretion of each of the partners, in the fulfillment of goals identified by the Alliance and respective Coalition(s) for Youth accordingly; f Financial support for the Alliance and Coalition(s) for Youth may be attained through grant requests, donations from the community, and contributions from the partnering agencies as approved by the governance board consisting of policy makers from each of the partnering agencies; g. By -Laws will be established by the Alliance governance board clarifying the Alliance's purpose, membership, officers, operations committee, conduct of business and adoption of budget, as appropriate; and BE IT FURTHER RESOLVED that the State of Minnesota, Hennepin County, the city (cities) of Brooklyn Park (and Brooklyn Center), Anoka- Hennepin School District, Osseo School District, Robbinsdale School District (Brooklyn Center School District,) Hennepin Technical College and North Hennepin Comrri tuity College shall partner with each other during 2008 and beyond, to develop and implement area -wide youth development strategies. BE IT FURTHER RESOLVED, that the State of Minnesota, Hennepin County, the city (cities) of Brooklyn Park (and Brooklyn Center), Anoka- Hennepin School District, Osseo School District, Robbinsdale School District, (Brooklyn Center School District,) Hennepin Technical College and North Hennepin Community College direct staff to cooperate, communicate and collaborate with partnering agencies in the pursuit of an area -wide fulfillment of positive youth development. (q;noA 9E) (sjaqwaw SS) s (sj@qw@w vz) pawjoj Ouiaq uoissiwwoD AjosiAPV qlnoA LicildwUH ss@j23uoD qlnoA silodeauuiVM uoissiwwoD qlnoA :1!:)uno:) qlnoA :1!3uno:) qjnoA :1!:)uno:) qlnol, SILI@PIS@A pue s4uajed 'DSHHMN 'suoi;epunol .3A@iuo:) A4!unwwo3'sdnoA 2UIAADS 1 P@zluP ON qjnoA 'sa;!s jooq3sja4jt? 'sdnoi? paseq ­p@ JDLj2Jq 'Ajuno:)'Aj!:)'sdnoj2 paseq -ql!pl Isuollempojo ISZ)SS@Ulsnq 'sj6ops :SjaqwaLAJ U011!leo:) HI! 'SPOOqJOqq 'SIOOqDS :sjaqw@LN uog!jeo3 :sjaqwaW uollpoi 2ulmajo Pue 001-OS uO'4!IeO:) P@z!ue ON 000'S JaAo :sjaqw@LAI uoil!leo:) jo jaqwnN -.sjaqwaw uop!jeo:) jo jaqwnN :sn)qwaW uoil!leo:) jo jaqwnN IjOI; can Pq Jaq�iq :)@�j pue DDId PL12 )IJPd 'saijejqq Isjooq3s 'alels 'AlLinoD 'sail!:) >1- Isajjejq!l 'slooLps '@leis 'Aluno:) 'AI!D 9DA ON :sjaqwaLm 9:)A :sJ3qwz)VY fl:),k :sjaqwaLN 9:)), (L?) 61 6T ODA ON :sjaqwaLAI Ei:),k jo jaqwnN P :sjaqwaLAI 9:),k jo jaqwnN R. sjaqwaLAI 9:)A jo jaqwnN The Minneapolis YCB does not provide services directly to children or youth. Rather, it is a capacity- building organization and pursues its goals through a set of overlapping strategies for: Analyzing and Disseminating Information collecting, synthesizing and communicating accurate and timely information concerning issues facing children, youth and families. Convening gathering key stakeholders to facilitate improved coordination, cooperation and engagement. Building Partnerships for Action supporting, coordinating or leading responses to concerns, and promoting effective policies and strategies for adoption across the city. ST. ANTHONY FALLS HERITAGE BOARD Subdivision 1. Membership. There is a St. Anthony Falls Heritage Board consisting of 22 members with the director of the Minnesota Historical Society as chair. The members include the mayor; the chair of the Hennepin County Board of Commissioners or the chair's designee; the president of the Minneapolis Park and Recreation Board or the president's designee; the superintendent of the park board; two members each from the house of representatives appointed by the speaker, the senate appointed by the Rules Committee, the city council, the Hennepin County Board, and the park board; one member each from the preservation commission, the preservation office, Hennepin County Historical Society, and the society; one person appointed by the park board; and two persons appointed by the chair of the board. Subd. 2. Report. The board shall report its actions to the appropriate policy committees of the legislature in the first year of each biennium. Subd. 3. Comprehensive plan. The board shall develop and make available to interested parties a comprehensive interpretive plan for interpretation of significant historical components in the zone. The plan must include, but is not limited to, significant historic and natural features such as the river, bridges, buildings, machinery that is part of the milling story, underground canals, stone paving, waterfall, railway components, and a heritage trail system that interlocks historic features of the zone. The plan must evaluate significant historic resources and interpretive options that will tell the story of the zone and its relationship to the city and the state. Subd. 4. Grants. The board may make grants and shall establish procedures to evaluate plans submitted for grants. Subd. 5. Compensation. Board members may be compensated for expenses in accordance with section 15.0575, subdivision 3. Since 1988 the St. Anthony Falls Heritage Board has provided both funding and leadership to accomplish their mission of preserving and interpreting the St. Anthony Falls Historic District. They have funded several research reports, archeological digs, reuse studies and the 1990 St. Anthony Falls Interpretive Plan. These reports and studies have been used to educate people about the history and resources in the area, as well as to provide a roadmap as to the best way to encourage redevelopment of this area, while still preserving its historical integrity. The Board has also served as a central meeting place for groups to come together to envision and complete projects that were too big for one agency or organization to take on alone. The Heritage Board consists of 22 members including representatives from the City of Minneapolis, Minneapolis Park and Recreation Board, Hennepin County, Minnesota Historical Society, Minneapolis Heritage Preservation Commission, State Historic Preservation Office, Minnesota State Legislature, and Hennepin History Museum. communication col a b o at i o n nooirLYN PAR cooperation tINTER "Bridging communication, collaboration, cooperation for youth initiatives across all boundaries of government, school districts and neighborhoods in Brooklyn Park (and Brooklyn Center).' e What is a Youth Coordinating Board? Why a Joint Powers A Youth Coordinating Board their fields, members of the Agreement? (YCB) is a committee Youth Coordinating Board Projects like this have been of elected officials and policy possess unparalleled abilities tried in this community makers from governmental to enact change, promote before, but they never seem agencies and key groups in new ideas, and encourage to gain traction for various the Youth Opportunities involvement in making "The reasons. Because of this, Coalition. From governments Brooklyns" a better place for the Youth Opportunities and schools to involved youth. As decision and Coalition has made citizens, each group policy makers, the Youth sustainability an important represented in the Coalition Coordinating Board will be aspect of everything we do i has a stake in the future of the guiding force and the from the very start. The joint Brooklyn Park and Brooklyn ublic face of this exciting powers agreement will be a P g P Si' Center's youth. As leaders in movement. formalized way to ensure we are able to sustain the efforts What is the purpose of the YCB? C the Youth Furthermore, it Coalition. Furthermore, it The purpose of the YCB is to will enhance communication gives this movement a bring together the decision and foster collaboration on tremendous amount of credibility and leverage. makers in Brooklyn Park youth issues. The YCB will The talents abilities and (and Brooklyn enter) to give provide direction for the Yn g P leadership of those involved this youth opportunities Coalition members and Y PP movement will provide instant ent the power and p provide staff members greater sustainability it needs to ability to partner in achieving recognition of this effort in effect great change in the lives the Board's goals. Together, the community and guarantee of our cities' youth. Each of these groups will be able to that the Youth Opportunities the parties represented is leverage resources to expand Coalition has the resources already working to help youth the reach of their work and and the spirit needed to make in The Brookl s. However, make a difference in the lives The Brooklyns more youth Yn o •o •d Partners bringing the groups together f friendly. gig gr p g o youth. Y State of Minnesota lwir Hennepin County a •City of Brooklyn Park $U�I City of Brooklyn Center ISD 11 ISD 279 ISD 281 ISD 286 North Hennepin 0 Community College a North Hennepin Technical College Youth Opportunities Coalition Champions For Youth 763- 488 -6388 pat.milton @brooklynpark.org 4. Youth Advisory 5600' 85th Ave. N. `Brooklyn Park, MN 55443 www.brooklynpark.org Commission III NOTES FROM THE MAYORS' ROUND TABLE DISCUSSION FOR COLLABORATION ON YOUTH INITIATIVES January 8, 2008 Welcome by Brooklyn Park Mayor Steve Larnpi who called the meeting to order and thanked all for coming he introduced Brooklyn Center Mayor Tim Willson and then attendees introduced themselves. Those in attendance (In order of seating) around the table were Mayor Steve Lampi, Brooklyn Park Mayor Tim Willson, Brooklyn Center Curt Boganey, Brooklyn Center City Manager Melodie Hanson, Executive Director of Mosiac Youth Center, a program of Project ReDesign, Robbinsdale Area Schools Melissa Hortman, State Representative Mike Nelson, State Representative Linda Scheid, State Senator Phil Essington, from Mike Opat's office, Hennepin County Commissioner Sherry Anderson, Senior Librarian, Brooklyn Park Library Roberta Kemp, Senior Librarian, Brookdale Library Kaydee Kirk, Project Coordinator, Brooklyn Park Community Development W Mayne Thyren, Director of Treehouse, Brooklyn Park Sy Knapp, CLIC member and Chair of Youth Opportunities Coalition Jim Glasoe, Director, Brooklyn Center Recreation and Parks Scott Bechthold, Chief of Police, Brooklyn Center Arnie Benifield, Brooklyn Center School Board Cheryl Jechorek, Brooklyn Center School Board Susan Hintz, Superintendent, Osseo Schools Linda Etim, Osseo School Board Greg Roehl, Chief of Police, Brooklyn Park Jon Oyanagi, Director, Brooklyn Park Recreation and Parks Kate Hansen, Student Intern, Brooklyn Park Recreation and Parks Jan Ficken, Director of Programs, Brooklyn Park Recreation and Parks Matt Norris, Youth Planner, Brooklyn Park Recreation and Parks Pat Milton, Youth Planning Coordinator, Brooklyn Park Recreation and Parks Barb Stewart, Recorder and Secretary for BP Recreation and Parks Jane Reinke, North Hennepin Community College Karen Kraft, North Hennepin Community College Carole Carlson, Hennepin Technical College Ron Kraft, Hennepin Technical College O —Dr. Roger Giroux, Superintendent, Anoka Hennepin Schools oug Reeder, Brooklyn Park City Manager I Rep. Debra Hilstrom had replied that she would be attending— but today expressed regrets that she was unable to be here due to a family emergency W hose in the audience included: Kay Lasman, Brooklyn Center City Council Dan Ryan, Brooklyn Center City Council Mary O'Connor, Brooklyn Center City Council Lori James, Institute for Minority Development Irene Rodriguez, Hispanic Chamber of Commerce Brian Hamilton, Brooklyn Park apartment manager Tonja Jackson, Brooklyn Center Police Department J. R. Hunter, Security Supervisor with Hennepin Co. Libraries Joe Groves, resident of Brooklyn Center D. Sturgeon, resident of Brooklyn Park Don Johnson, resident of Br. Center and board member of Crime Stoppers Paul Fusco, contractor nature advocate and volunteer in BC and BP Mary Tan, Communications Coordinator, City of Brooklyn Park Natalie Spray, Editor, Brooklyn Park SunPost Lisa Furgison, Reporter, Cable 12 1 Vlayor Lampi stated this group is here today to discuss youth opportunities and issues in Brooklyn Center and Brooklyn Park and what we can do to develop positive ways to deal with the many issues they face. He stated both cities have discussed building collaborations between both cities and feels youth opportunities and issues are important to discuss. Brooklyn Park does not want to run in one direction while Brooklyn Center, Osseo Schools, North Hennepin Community College, etc. run in other directions. It is much better to work by putting together all of these minds, ideas and strategies to brainstorm to achieve a better result. Mayor Wilson stated his belief that this group can make a difference by coming together to brainstorm good synergy. All of the groups /organizations have finite resources and are unable to "go it alone." We are looking for help and input and are excited about today's response and seeing so many leaders here today. Collaborating for youth is something we all should be talking about and working with. Matt Norris and Pat Milton extended a welcome to all. Although they work on these youth issues all the time, they expressed appreciation for all of these people who have made time to attend today's meeting to discuss the many issues. 40 matt provided some background information. He started as a youth Liaison to the Citizen Long -range Improvement Committee (CLIC) and has worked for two years i on exploring youth opportunities in Brooklyn Park. This summer, Jan Ficken hired Matt to work as a youth planner. IDA folder was provided to everyone that contained background information, today's agenda and a print out of power point slides). Matt and Pat presented a Power Point depicting the history of the YOC. Matt showed a video of the Youth Leadership Summit held in August, and Pat gave an overview of the coalition structure and organizational charts. Pat then opened up the discussion to the `floor'. Mayor Lampi stated he would like thoughts and ideas to share. Folks have been working on this to create new ways to reach out. How do you see your group /organization doing this? Matt passed around a notepad for those who had not been on the email list, and Pat noted that there was a sheet in their folder for people who are on the list to note if there is inaccurate information and also to provide an evaluation of the concept. Mayor Lampi asked: what do you envision from this meeting? Y P Y w Mayor Wilson answered some have met in smaller groups on this very issue, but e haven't gotten this entire group together from this area. Knowing that cuts have been made in funding for schools, we honestly have due diligence to kids in our communities. What can we provide to kids in the community? We generate programs and control funding we would like youth involvement. Over the years programs have worked and not worked. We are not trying to address a specific group but rather across the board. Youth feel there is no hope, have difficulty finding jobs and organizations they can be a part of, leading to idle time. The more things we can ut together to connect with youth is a good thin P g Y 9 9 Melissa Hortman When I saw this written up in the SunPost, it was along with the conflict within the school districts. One of the best things we can do for the youth is in the after school programs and activities. Kids who need the most help frequently are not involved because of financial need there needs to be funds to help them. Where else could the money come from? The cities can pick up some of cost, but there is considerable debate on recreation funding. Kids are saying over and over they want recreational activities. The challenge is where is the money coming from? Mayor Lampi I hope we can all specialize in areas... Maximize the small mount of dollars we have to work with. Roger Giroux We need an inventory of what we already are doing and a starting point. W ayor Willson There are several ar f ndin come from includin areas where funding can g athletic associations, Lions, etc. I don't see a coordinated effort as to what we are doing and how to do it better within the entire region. Linda Etim One example is north Minneapolis where some work is funded by Hennepin County and the University of Minnesota. Brooklyn Park and Brooklyn Center are a part of Hennepin County, and why haven't we tapped into those resources? I know there is funding in other areas and not in The Brooklyns. We should be able to tap into that money. We do have a serious issue in BP /BC. We need to look at what other communities are doing. Linda Scheid Inventory what we are already doing and have a place to start from. People just don't understand life in "The Brooklyns"... they're not stereotypical suburbs. Brooklyn Park is a second ring suburb and has some of the same issues as the inner city. (According to a Hennepin County Health Disparities report [around 2002], the area south of 85 Ave. in Brooklyn Park and all of Brooklyn Center had some of the highest levels in the nation of teen pregnancy, adolescent obesity, school dropouts, and youth violence.) We need to better communicate amongst ourselves. GArnie Benifield Three school districts in the area have worked together through the 9 9 Family Services Collaborative and are involved with education programs that could expand out to the communities. There is not enough funding, however, to keep a lot of the efforts going (such as teen pregnancy programs). Susan Hintz We have to continue our efforts of informing the communities of our needs. We've had to overcome misconceptions of the need and challenge the group of how we are going to inform our communities of our needs. One of the things have asked for is, "Where is there another place in the country where the demographics are like Brooklyn Park and Brooklyn Center and gather information on how they have handled youth issues." See if all of this work has already been done and have some data of what has been accomplished. Pat Matt and staff have been researching models anywhere in the country that have been a success but most have only one school district (versus four). We have a huge undertaking in coordinating several groups /organizations and were not able to find a model with this many schools and organizations in the communities. aft Hampton, Virginia is a model that is close to ours (although not as culturally diverse and within one school district). They have developed a coalition, emphasize youth in the process, and have developed a Youth Advisory Commission. They have found it takes a long time they have been doing it for 10 years and are just now getting a youth center. O lan Ficken Another model we are looking at is the Minneapolis Youth Coordinating Board, a legislative directive board in its 22 year, which coordinates between four governmental agencies. The board required legislative action to bring it together. This is a potential governmental structure that staff will research more. Sherry Anderson Try to identify the other groups and organizations and know who the contact people are. Keep the communication lines open and schedule regular meetings. Mayor Wilson The message of the need for community involvement is coming through loud and clear. -Melodie Hanson Many youth do not have a support structure, no hope for a future, no "one person" who cares for them. Many secondary resources are their "caretakers." Mike Nelson— Church groups are missing around the table today. They can help and make sure we are not duplicating dollars. We also don't want to be perceived 0 a fighting over scraps in Hennepin County. Pat replied that this group would be a governance body that governs over the coalition which includes many organizations including the faith -based community. Linda Etim We appreciate what the youth coalition is doing. Make sure to pay attention when looking at program models to look at the outcomes. There are a lot of programs out there but the outcomes aren't there. We need to consider what outcome we want and base the programs on that outcome. Curt Boganey This is an impressive turnout today. Mayor of Crystal is interested in having the first ring suburbs work collaboratively on the issues of youth. With that in mind, how should the coalition be structured? There is obviously a significant need in Brooklyn Center to address the issues of youth. Something needs to be done. The youth of The Brooklyns have to be involved and positively impacted by it. We don't want to be all needs to all people "youth" is an extremely broad issue. The expectation of the outcome of the coalition needs to be clear and focused even though we have shared interests, we also have competing focus. To be successful, we have to clearly define what it is that we are trying to achieve. Without this, we will not receive the funding necessary. Resident If kids have a chance to get to know authority figures, someone involved, then kids respond. *inda Scheid We have to convince our communities to support the kids. We have a school district divided along with a city that is divided. Race is an issue. Minnesota is standing out with its achievement gap. Is this a bunch of nationalities and ethnicities not able to accept others, a resistance to race /others? An example is the resistance to more affordable housing, etc. We need to bring our community along, and we shouldn't be afraid of standing up and saying we are going to do the right thing. I like the `Brooklyn Bridge" concept. Arnie Benifield There are people (Latinos, Asians, Africans) who are not represented here. It is important that they come on board. Carole Carlson A lot of this is about awareness. HTC and NHCC are already doing things with the youth, and we just have to make the community aware of the programs /opportunities. Education is the key. Keep them busy and involved in K -12 and bridge it to higher education that's the important thing. Melodie Hanson W wan in positive endeavors. That means We t to keep kids thriving i pos 9 different roles and responsibilities indifferent organizations. W at Where do we go from here? Identi fy how to build specific partnerships feel free to reply to our emails and complete the questionnaire /feedback. I think it will evolve to what we want it to be. When and where do we convene do we meet, communicate electronically, etc. Plan to meet quarterly, then the coalition will begin working on input from today. With a uarter( Ian then i be scheduled for Tuesday, Aril 8 q y p next meeting would ch y, p 2008, at 3:30 (in the Brooklyn Park Council Chambers There will also be a Coalition meeting on January 17 and Pat will send you an email with that info. Jon Oyanagi Thanked all for coming and hope this will be a sustainable structure that will support youth for the long run. The St. Anthony Falls Heritage Board is a great model involving similar groups. It had to be the top level decision makers making those decisions. If done at the staff member level, it couldn't be sustained. They created a plan identifying the outcomes and addressed prioritized goals annually. Hopefully, people will be on board. Mike Nelson If you want to get the kids to come along with us, we need to set our �gos aside and let the kids lead. They have great ideas, and they will surprise us. Don't get caught up in your high level governance have it there so you can help the kids, but not taking the reins. That is the sustainability key. Linda Scheid Important to get parents involved. Make a point of showing that we W a re demographically represented. We are not just a sounding block people are aking a difference. February 8 Gala Event for Youth at Edinburgh USA Program will include an official signing of all of us on board —a pledge to work together for youth. Questions about "black tie" on the promotional postcard was clarified that we want to dress to impress youth who will be there they will be dressed to impress us! March 15 Adult and Youth Partnership Summit April 8 Next Governing Board Meeting Pat My personal goal is to have every one become a Champion for Youth (Caring Helpful And M otivated for P rogress In O ur N eighborhoods). Wear buttons, stickers on windows, car windows, etc. Youth need to see that kind of support from the entire community. Reeder We have enough to handle right here with BC and BP Crystal, Osseo, surrounding communities will want to be included. We have enough to handle here. SMayor Wilson I want to be inclusive although I do realize why P /BC would want to Y keep it focused. I don't think we should restrict it just to `our youth'. Mayor Lampi I agree, but I am concerned that we will get too big too fast. J. R. Hunter I just want to add that the libraries have become 'by default' the 'teen centers' of the communities we offer internet access and we have it all over so we have teens in all of our libraries and we would like to help but we need partnerships. Mayor Lampi Thank you, everyone, for coming, it's incredibly rewarding to see this. Comments and evaluations from the Mayors' Round Table Discussion Corrections and additions to the database were returned on the evaluation forms, as well as the 0 11owing comments following the Mayors' Round Table Discussion on February 8, 2008: We need to be sure to include and listen to the youth and "what they want" and not dismiss them if we truly want their involvement and participation. I look forward to hearing about your progress. Thank you, Pat and Matt, for taking the lead. I like the idea of collaborative efforts it's the only way to work... Whether 1 or 2 Coalitions Brooklyn Park also or and Brooklyn Center.... Transportation and location are issues... can border mid- point... scattered throughout... what can we all buy into and achieve a good result... exciting! I think that there should be individual coalitions for each city with the governance board as an umbrella representing the northwest area... beginning with Brooklyn Park and then Brooklyn Center... and as other cities may come forward they could each have their own coalition under the governance umbrella.... but it needs to be limited to those cities who are totally within Hennepin County and the partnering school districts. Has the Coalition considered Northport Elementary (slated to be closed) as a gathering site... perhaps a joint partnership with Mosiac? I think there needs to be just one coalition for "the Brooklyns otherwise there will be two of everything to have to send staff to and that may reduce the impact... the purpose of this whole thing is for collaboration and to truly collaborate, there should be just one coalition. If there's just one "Brooklyn Bridge" there should be a youth planning coordinator for Brooklyn Center (another Pat)... in order to deal with each city's unique needs, priorities and projects. I would like to see a surveying process implemented online so that each partner can reply to ideas and questions brought forward by the group. This was an impressive show of support for youth and a great example of what might be achieved thank you to Mayors Lampi and Willson for taking the lead on this and to everyone who took the time to attend. Let's continue to move forward together! Materials need to be condensed into a 1 -page or less "fact sheet" to distribute for someone to capture YOC in a quick 'sound byte': Lots /too much material right now... less is better.. I agree with the "to what purpose" comment we need focus and clarity this will help us communicate the need and better articulate this this will also help secure funding allow for sustainability. I also agree with researching other communities' best practices with youth (areas with similar demographics and size, first ring suburb, etc.). Need to resolve if we'll move beyond BC /BP to areas like Crystal, etc. and other first -ring suburbs (again, need more clarity) and also need to engage multicultural community on governing board. YCB TIMELINE NEXT STEPS: (Meet on the second Tuesday of each quarter, beginning in January) January 8, 2008 Mayors' Round Table Discussion proposing concept Tasks for fulfillment: Identify examples of other models; Inventory of existing services; draft of proposed resolution April8, 2008 Round Table Discussion clarifying concept Report back on examples of other models Report back on inventory of existing services Present Proposed Resolution Confirm Purpose July 8, 2008 Round Table Discussion confirming concept Report back on adoption of Resolution to form YCB; Review /approve proposed YCB Joint Powers Agreement and Bylaws August 23, 2008 Planning Summit October 7 2008 Youth Coordinating oard meeting 9 Report back on adoption of Agreement and Bylaws P P g Y Review mapping project results Review preliminary strategic plan discussion from Summit January 13, 2009 Youth Coordinating Board meeting Finalize Strategic Plan S for 11 t$ mQ (iN0`MR1oN rnee 0 Unlim Membersh� Org anizations Un1im neThY TreeHouse, Way tin9 e Dix Board AAAC Eugen �oordin Rotary Club s Youth tin Club resen g Lions.... of 1'odaY ember governing board rep eeting W envies m E lks Club t Businesse r 13.15 overnmental a9 -Club ,B Dossman serving guarteriY per year. prop• yo uth- L yle Cleme LOW nson n0 more than q Scheld CE1, Y Sue Linda pfllegra Printing, Seri. Edward Jamey Residential R Melissa Rottman Barbe St0P, un tie s S tat e of Minneso Cookie onaiwu Red M ►ke Ne►son park Haven, Loftquist Comm Eden Park, Perry be BP City �ommissioner 09at es, Eouncilmem ounty S pnderso Rich Gat Comm. Dev' Nennep dee Kirk, r nepl park Library C t 1 Member Kay Enaineennq 6P police Dept B i Brown.8icers council.? t s pot tan Tony Pistilli Bp Roe. Program Sch of 1►a On is I metro o M Steve Lamp i.k l Jan Ficken m E d. rooklyn`prk thief Mlke Davis Charlie MCChesneY Osseo Com A. City of 8 Police Gomn Gr f 281 Director t:►sa Hanson 1_ y n epin Parks ReDeS gn, Melodie Anoka -Hen I Recreation and Jon Oyanag� t i, F amily Svcs Comm unity E Department upedntendent r W Hen jue 1 Schools Hintz Jonette Zuercher NHD Area Susan r outreach Osseo Shai Xiong otri unity Superintendent Troy Neiiis, Service Learning h Cm Mack Ed Wilson Rob binsdale Area Stan dent SalvatjonA inistry Superinten Cariri Fathers M soc.. Schools in Area w noka- Nennep Roge G ►r` X Youth Pastors A A �►fe Coaches S Ypresiden ISAIAH NW M etro Caucus--- Sp LibrarY ennepin W nla �►�o rth Cynthia Matthias p H College Ann Y Comm unity "'president youth t:V3 an R es idents, COmm n JeffetY Ion West- Haffner H iCathry„.� ia Lisa Stordahl College hies 1 Coalition L.laison s Lis Beth Becker Youth Opp ortunif Stordahl lition 1 -2 youth L ►a ►son Marilyn Childress Youth Coa Deb F elm (outh Advisory e Kat Hansen e issian :Matt Norris, Grew (36 Comm Youth Action artners maYlnclude p ddition3I b l- lilstroM Rep n Center lstrict City of Bro k kar Sc hool D Commun y o u t h ee pp }y+@��� a of ?situ d f" n r v L'pAr�$:. ,`m zn F.�R i -ia*A` e.`.. x �i '�5 �.9 k �z P �d F., A To reduce the disconnection youth Neighborhoods support the creation of experience in their communities and p assets for youth out -of- school time s to provide youth and adults with the to resources needed to identify, promote Youth create the data necessary impact planning and decision making and develop opportunities for learning, V civic participation or employment. Young Youth and families get the information people will have access to and awareness they need to participate of opportunities, activities and services. Action Plan Strategy Hennepin County will partner with Youthrive, The key to eliminating disconnection Dendros Group LLC and Youth Are Here!`' to is creating relationships. By generating support community based partnerships that partnerships between youth and adults, will mobilize Youth Action Crews. 4il z communities can build a foundation for young people and their families that Phase One includes information about, access to Mobilize youth and adults for project t and influence on youth development partnership opportunities in their neighborhoods. Youth interview youth, identify assets Pilot projects in suburban Hennepin Design marketing tools Count will take lace from August Y p 9 tts Tw 2007 to August 2009.Once completed, g p Youth to youth marketing and Hennepin County will partner with q communities to evaluate the projects and dissemination share the results. Identify stakeholders 4 Fundraise Intent Fla se rhr Develop action plan with key youth to v increase youth participation To provide communities with a youth 1 E Develop programs in partnership with engagement model that focuses on youth and adult stakeholders asset building, creating youth and adult partnerships, and developing the data Evaluate project and disseminate to necessary to create high quality and community and county partners x sustainable youth programming and Communities initiate new strategies for opportunities. active youth engagement p r n'�P.3 h i� rah aS t DENDROS GROUP If you need further information about this project contact Rebecca Gilyen at: i^ Phone: 612.294.89$2 E -mail: rebecca .ailaenC�?co.herrne?in.mn.us STRATEGIC PLAN DE1/ELOPMENT Including concerns and priorities of the "Yo uth Coordinating Board SUMMIT WHAT PRIORITIES YOUTH ■Youth and adults WANT working together Large group "'Mapp PLANNING SUMMIT training for process pp g Zanewood Commu Center issues awareness results y Small group break Sat. August 23rd, 11 a.m. 6 p.m. outs for planning in frorYl' the 4 or 5 specific areas: Commun►ty Examples: Employment Youth fiction Recreation' ➢Transportation CPeW'PI'OJC'Cf' Education Crime Prevention COMMUNITY'CONCERNS Issues and concerns identified T hrough precious summits ite e Ag NV oak MEMORANDUM COUNCIL WORK SESSION DATE: April 28, 2008 TO: Curt Boganey, City Manager �5 FROM: Vickie Schleuning ✓Assistant to the City Manager SUBJECT: Neighborhood Stabilization Strategies for Foreclosed and Vacant Properties COUNCIL ACTION REQUIRED Provide feedback and direction to staff regarding strategies to address nuisance issues associated with foreclosed and vacant properties. Specifically, staff is recommending the adoption of a vacant property ordinance section that would include the proposed standards briefly summarized in this memo. The purpose of the discussion is to determine if we should not include any of the proposed standards. BACKGROUND With the current downturn in the housing market and as foreclosures continue at an accelerated rate, the aftermath continues to present greater challenges to the city- both residents and staff. Based on information gathered as part of foreclosure surveillance, an estimated 140 properties are vacant. Vacant properties, if not properly monitored and maintained, become nuisances and blight to neighborhoods. Foreclosed properties may be vacant for months or years, becoming targets for vandalism, illegal dumping, health and safety hazards, and general nuisances. Staff is also observing a trend where properties in pre foreclosure stages are also becoming nuisances due to lack of maintenance, and accumulation of junk and debris. These properties are often not maintained in compliance with minimum standards of city codes or fail to meet neighbor expectations. In response to increasing concerns, the City has implemented actions to address and minimize the negative impact to neighborhoods by responding promptly to unsecured structures in accordance with standards set by Minnesota State Law and City Housing Code. However, general nuisances (refuse, junk, abandoned vehicles and property, and similar) are often difficult to bring into compliance with minimum codes, consume significant amount of staff time and the amount of time to achieve compliance is often not acceptable to residents. Because of the higher rate of foreclosures and vacant properties being experienced in Brooklyn Center, the potential impact to the neighborhoods and community is high, which ultimately creates a greater need for higher levels of control and management of these properties. Blighted properties reduce property values and set low expectations for community standards. Not only is this an important issue in retaining residents who take care of their property, but it is important in setting community expectations and attracting responsible home buyers. Page 1 of 3 Staff would like feedback and direction from the City Council in regards to Neighborhood Stabilization strategies and proposed actions, specifically including standards to address vacant buildings. In a review of various vacant building codes in existence across the nation and based on problems experienced by city staff, the following is a list of some standards associated with vacant building regulations. Some standards would be referenced from existing code sections, while other standards would be new. A brief summary is provided for each standard. 1. Registration of vacant property. This requires a mortgagee or responsible party to register and provide contact information to the city. It may also require a local property manager to be available. Two options for implementation have been used. One option requires all vacant properties to register. If voluntary registration is not obtained, the city is responsible for finding a responsible parry and taking enforcement action as specified. The second option requires properties where violations or problems are noted to register. To help recover costs, a fee may be imposed for registration of vacant property. According to research, fee amounts varied significantly. 2. Provide process for transfer of ownership to city where property is completely abandoned. This pertains to properties that are vacant for years, where the property owner is essentially absent. 3. Inspection requirement prior to re- occupancy. These types of inspections are intended to ensure the building is safe and healthful. It is important to assess the livability conditions of properties when properties are vacant for extended periods of time, where vandalism has occurred, or where significant property damage has occurred due to plumbing or utility breaks. 4. Posting responsible party contact information on house. (Priority) a. Provides a more efficient method for city employees to advise owner /manager of emergencies or of other corrections. 5. Standards and criteria for securing property. (Priority) a. Sets forth criteria for property owners, mortgagees, and other responsible parties and may consider safety and aesthetics to minimize blight to community. 6. Posting notification for vacant properties about unauthorized entry. (Priority) a. Provides explicit instructions regarding authorized personnel and consequences of violation. Will aid the Police Department and city staff in prosecuting and eliminating vagrants and trespassers to reduce criminal activities occurring in vacant buildings. 7. Expressly stating violation to remove copper, bricks, appliances and similar thefts. a. Sets forth consequences of violations 8. Conditions set regarding utility shut -off (water, gas, etc.) (Priority) i Page 2 of 3 a. Criteria established prescribing when utilities should be turned off, who is responsible, helps prevent significant damage to property, and minimizes health and safety hazards. Ex. Water leaks, gas leaks 9. Establish specific standards and performance criteria for property maintenance for property owners. (Priority) a. Reducing grass and weed height from 8 inches to 6 inches to allow earlier intervention for nuisances and promotes routine landscape maintenance versus nuisance maintenance. b. Address illegal dumping and other illegal activities occurring on property c. Address graffiti d. Address accumulation and removal of garbage, refuse and junk such as refrigerators with doors, batteries, chemicals, electrical hazards, unmaintained pools and water hazards (for vacant and occupied properties) e. Address hazardous structures 10. Provide remediation process for chronic problem properties. (Priority) a. This would include situations where multiple violations occur regarding illegal activities, property is not secured, illegal dumping and similar. 11. Provides standards and city facilitated abatement authority so immediate health and life safety hazards and obvious eyesores can be corrected in a timely manner. (Priority) a. Provides an alternative to criminal court proceedings and reduces time for compliance. 12. Cost recovery language (Priority) a. Recover costs associated with identification and removal of nuisances. COUNCIL POLICY ISSUES Is it necessary and does it serve the expressed goals of the City Council to amend its code of ordinances to establish a separate section governing the maintenance and protection of vacant properties? Items to consider: Costs and allocation of resources- balancing resources devoted to criminal enforcement actions (punishment) versus correction. Ongoing maintenance for properties vacant for extensive periods of time. Establishing clear expectations for property owners, agents and the general public regarding issues related to foreclosure and vacant properties. Encouraging responsible and accountable property owners /agents, while having a secondary plan to enable the city to correct detrimental situations. Establishing options for short-term strategies, with long -term implications for neighborhood stabilization and reinvestment. Page 3 of 3 ort� ses Sion Agenda Item W COUNCIL ITEM MEMORANDUM TO: Curt Bo ane City Manager g Y t3' g t1i5 FROM: Vickie Schleuning, Assistant to the City Manager Patty Hartwig, IT Director DATE: April 28, 2008 SUBJECT: Rollout of eCitizen Center on the City Website Recommendation: Provide an update and demonstration to the City Council regarding the implementation of the new online customer request management system. Background: For the past couple of years, staff has been reviewing various software solutions to find a program that would provide a practical solution to enhance customer service through the city website. As a result of the search and subsequent department -wide efforts, the city will launch the eCitizen Center on the city website on May 1, 2008. The customer support system is based on the GovQA platform and is provided through WebQA company. The GovQA platform supports four distinct modules that will support incoming citizen requests for information and service, and outgoing communications for alerts and feedback. These modules are accessible to citizens and local governments by phone, web, email or in person. GovQA is flexible to meet each department's needs, centralized to provide a complete view of all government support activities and completely automated to improve efficiencies. Some specific benefits of this system include: Citizen Organization Sense of Improved and Expanded Service Expandable, cost effective platform through website Familiar and Consistent Format Manages inbound requests- same format, consistent information Improves Speed and efficiency- automation, Customizable to meet department needs- self- service workflow variations Enhances Communication- additional Provides central control, analyzing and avenues, consistency in information, reporting functions response prompts Can view status of requests Increase efficiencies- automation functions and reports Additional channels for input- impromptu Enhances proactive communications- feedback, surveys newsletters, alerts surveys Page 1 of 2 Implementation Schedule of the eCitizen Center 1. Information Module (Knowledge/FAQs)- Available to the Public May 1, 2008. Citizens with internet access will be able to get answers to common city questions any time, any day and any place through the city website. So far, employees have compiled over 350 questions into a central repository of information, which will build based on feedback. Citizens can quickly search by most frequently viewed questions (tabulated automatically by the system based on response), keywords, or departments. Answers will be complete and reduce the need for citizens to search multiple website areas or multiple departments. Links and attachments can be added to text. Information about the May lst launch of the Information Module was placed in the Summer 2008 City Watch, delivered to households the week of April 19. 2. Service Request Module- Available to the Public June 1, 2008. Requests for service are captured, routed and managed through this module. Each department can tailor the service module to their individual workflow needs in areas such as information requirements, service levels and time triggers, and resolution criteria. GovQA will accumulate the status of all activities across departments from the beginning of the request through fulfillment. The system is capable of providing a number of reports and workload measures. 3. Message Module- Implemented as part of strategic program uses. Alerts, notifications, newsletters and city messages can be delivered through this module. Links and attachments can also be incorporated with the messages. 4. Survey Module- Implemented as part of strategic program uses. The survey module provides informal and formal ways to capture input from citizens. Informal feedback occurs by soliciting impromptu feedback associated with any citizen contact with the system. For example, citizens may indicate whether FAQ information was helpful or may be asked to rate services or messages. More formalized citizen input can be captured using an automated survey utility. This survey can be administered through the website or through email. Feedback could also be collected over the phone or in person depending on the scope and purpose of the project. Data is automatically collected and analyzed. GIS capabilities are also incorporated into the system. Interfaces with other software can also be developed if needed. Primary Issues /Alternatives to Consider: N/A Budget Issues: This system is a hosted website solution, providing a cost effective solution, yet customizable internal system for customer support. The initial set up cost was $4,000.00. The monthly fee is $475.00. Attachments: N/A Page 2 of 2 ends Item work session Ag City of Brooklyn Center A Millennium Community MEMORANDUM COUNCIL WORK SESSION DATE: Thursday, April 24, 2008 TO: Brooklyn Center City Council FROM: Curt Boganey, City Manage SUBJECT: Centennial Celebration Committee COUNCIL ACTION REQUIRED At the last meeting it was agreed that the Council would review the draft letter and list of potential invitees to the kick off meeting in May. Monday we should finalize the draft letter and list and set a date for the first meeting in May. We should also review the role of the committee Chairperson. BACKGROUND COUNCIL POLICY ISSUES 042808. centennial. worksession.mem frm.docx 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityofbrooklyncenter. org DRAFT Dear Community Member: In February 2011, the City of Brooklyn Center will celebrate its 100 year birthday. The Brooklyn Center City Council wants to make sure that all citizens recognize, participate and enjoy this momentous occasion. To accomplish this goal, the City Council has pledged financial support and resources to facilitate and serve this objective. The Council has established a Centennial Celebration Committee (CCC) and a tentative outline of its tasks are attached. As Mayor I am pleased to report that has agreed to serve as the CCC Chair. However the success of this event will depend on one factor alone -we need you to participate in the planning and development of this program. You will decide on the size and scope of the celebration, determine where and when activities will take place, and most importantly you will assure that the entire community is involved and enjoys this wonderful celebration! As a first step in this process, we are asking your organization to send two (2) delegates to the initial planning meeting on May at p.m. in the room of the Community Center. The delegates will finalize the mission, goals, general scope for the celebration. Working sub committees will be established and then the fun begins! Once, sub committees are established, additional recruitment will follow and there will be plenty of opportunities for all to get involved. 2011 seems like a long time from now, but we are starting early to assure this event will be an astounding success. With your support and participation I know it will be! Mayor, Tim Willson RELIGIOUS INSTITUTIONS 40 i RELIGIOUS INSTITUTIONS IN BROOKLYN CENTER BAPS- MW -MSP Hindu Church 2300 Freeway Boulevard 35- 119 -21 -24 -0005 Brookdale Christian Center /Assembly of God 6030 Xerxes Avenue North 02- 118 -21 -22 -0074 Vacant Land 02- 118 -21 -22 -0076 0077 Brookdale Covenant Church 5139 Brooklyn Boulevard 10- 118 -21 -11 -0010 Brooklyn United Methodist Church 7200 Brooklyn Boulevard 28- 119 -21 -41 -0214 (Vacant Land Parking Lot) 28-119-21 Church of the Nazarene 501 73rd Avenue North 25- 119 -21 -42 -0015 Parsonage: 7236 Camden Avenue North 25- 119 -21 -42 -0009 Cross of Glory Lutheran Church 5929 Brooklyn Boulevard 03- 118 -21 -12 -0097 Fellowship Baptist Church 5840 Lilac Drive North 02- 118 -21 -14 -0019 Good Shepherd Fellowship 6900 Humboldt Avenue North 25- 119 -21 -33 -0049 Grace Romanian Baptist Church 6206 Lilac Drive North 36- 119 -21 -33 -0005 Harron United Methodist Church 5452 Dupont Avenue North 01-118-21-34-0118 Vacant Land Parking Lot 01- 118 -21 -32 -0085 Imam Husain Islamic Center 6120 Brooklyn Blvd. 34- 119 -21 -43 -0060 Jehovah Jireh Church 6120 Xerxes Avenue North 35- 119 -21 -33 -0064 Korean Evangelical United Methodist Church 6830.Quail Avenue North 33- 119 -21 -11 -0061 41 Korean Presbyterian Church of Minnesota 58 4 0 Humboldt Avenue North 01- 118 -21 -23 -0104 Lutheran Church of the Master 1200 69th Avenue North 25- 119 -21 -33 -0086 Lutheran Church of the Triune God 5827 Humboldt Avenue North 02- 118 -21 -14 -0032 Parsonage: 5821 Humboldt Avenue North Parsonage: 5812 Irving Avenue North 02- 118 -21 -14 -0070 Minneapolis Apostolic Lutheran Church p P 6630 Colfax Avenue North 36- 119 -21 -24 -0048 MN Conference Assn. of Seventh Day Adventists 6625 Humboldt Avenue North 35- 119 -21 -14 -0013 Moving on Up. Church (see Humboldt Square Shopping Center) Northbrook Alliance Church 6240 Aldrich Avenue North 36- 119 -21 -34 -0099 St. Alphonsus Catholic Church Diocese of St. Paul 7025 7031 Halifax Avenue North 27- 119 -21 -33 -0069 Redemptorist.- 4111 71 st Avenue North 27-119-21-31-0121 Convent 7024 Halifax Avenue North 27- 119 -21 -34 -0045 Spiritual Life Church and Bible College 35-119-21-22-0051 6865 Shingle Creek Parkway Unity Temple Church of God 4801 63rd Avenue North 33-119-21-44-0010 Parsonage: 6226 Perry Avenue North 33-119-21-44-0004 I 42 Brooklyn Center Centennial Celebration List of Potential Committee Members April 14, 2008 Civic Organizations and Non Profit Oreanizations Lions Lioness Rotary Crime Prevention Committee Historical Society BC Women's Club Community Mediation Services BC Business Association BC Athletic Club Boy Scouts Girl Scouts CEAP- Community Emergency Assistance Program MAD Dads- Men Against Destruction Earle Brown Days Committee Hennepin County Library NWHSC- NW Hennepin Services Council ASSA- Amanu Sports African Assistance OLM- Organization of Liberians in Minnesota Center for Victims of Torture SEACC- Southeast Asian Community Council HMAA- Hmong Mutual Assistance Association MAWA- Minnesota African Women's Association ELL- English Language Learners ESL- English as a Second Language M.O.M.S. Club- Moms Offering Moms Support Lutheran Social Services i MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION FEBRUARY 25, 2008 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Tim Willson at 6:00 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Kay Lasman, Mary O'Connor, Dan Ryan, and Mark Yelich. Also present were City Manager Curt Boganey, Director of Fiscal Support Services Dan Jordet, Engineering Technician IV Bruce Johnson, Community Development Director Gary Eitel, Planning and Zoning Specialist Ron Warren, Assistant to the City Manager Vickie Schleuning, and Carol Hamer, Timesaver Secretarial, Inc. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Councilmember Yelich requested removal of Consent Agenda Item No. 7b from the Consent Agenda. Councilmember Yelich requested that Agenda Item No. 11 a be removed from the agenda until a later time after Council has had the opportunity to discuss rental ordinances. It was noted that questions can be asked of staff when this item comes forward on the agenda. The majority consensus of the City Council was that Agenda Item No. 11a remain on the City Council meeting agenda. There was discussion regarding Agenda Item No. l lc, specifically in relation to Section 19 -1307 of the proposed ordinance. Mr. Boganey explained the reason for striking the language in this section of the ordinance is essentially to provide for greater flexibility to be able to levy up to the. maximum allowed under state law for a misdemeanor. Councilmember O'Connor requested the following amendment to the February 11, 2008, Regular Session Minutes: Page 11, Item 11 e, second paragraph, third sentence: was neted that the rest of the C Membe r ated It 47 per- a a There was discussion regarding the requested change to the minutes and the discussion that had occurred during the meeting on the topic of performance standards. It was noted in total all 47 performance standards were addressed. 02/25/08 -1- The majority consensus of the City Council was not to accept the above amendment to the February 11,'2008, Regular Session Minutes. MISCELLANEOUS There was discussion that the new ownership of an apartment complex in the City had raised the topic of requesting bonds and City assistance with repairs. Staff will conduct a review and analysis of the company prior to providing a recommendation or options on assistance. There was discussion regarding the City Council Annual Retreat that was held on Saturday, February 16th. A work session topic will be scheduled as a follow up to the retreat with a discussion of the 2008 City Council goals. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS 2011 BROOKLYN CENTER CELEBRATION CITY COUNCIL Ms. Schleuning introduced the item and provided background information regarding the Brooklyn Center Centennial Celebration Event. She provided an overview of the draft of the Centennial Celebration Project Outline, including the Mission and Committee Goals and Guiding Principals. It was noted that the official centennial date is February 11 th There was discussion of the following in relation to the Centennial Project: Vision for the Celebration Event Centennial Project Outline Establishing a Centennial Celebration Committee potential committee representatives o Councilmember Lasman will provide a list of individuals involved in the annual birthday celebration events that have expressed an interest in being involved in the Centennial Celebration Event. Likely challenge of getting involvement from people who are not part of an organized group Managing the size of the committee by requesting organizations to recommend a representative Modification of the mission statement to emphasize community building Supporting efforts of the Historical Society It was the majority consensus of the City Council to direct staff to present Council with a draft invitation letter requesting participation in the Centennial Celebration Event, and a draft list of community organizations, churches, etc. as a beginning point to solicit participation. UTILITY SHUTOFF POLICY AMENDMENT Mr. Boganey introduced the item and stated the purpose for the proposed modifications to the Utility Shutoff Policy. Mr. Jordet answered questions of the Council and provided further information regarding costs and problems associated with the current policy. 02/25/08 -2- There was discussion regarding the ongoing fixed costs involved with the system which continue while the water is shut off. ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL Councilmember Lasman moved and Councilmember Yelich seconded to close the Study Session at 6:45 p.m. Motion passed unanimously. RECONVENE STUDY SESSION Councilmember Lasman moved and Councilmember Yelich seconded to reconvene the Study Session at 6:47 p.m. Motion passed unanimously. UTILITY SHUTOFF POLICY AMENDMENT The discussion continued on the Utility Shutoff Policy Amendment. There was discussion regarding possible methods to communicate to the residents that the proposed $9 charge is a reduced rate. Mr. Boganey indicated staff will draft language to include in the Policy to clarify that people who fall in this category will be billed at a modified rate established by City Council. It was the majority consensus of the City Council to direct staff to present a draft Utility Shutoff Policy Amendment to City Council for consideration. BROOKLYN CENTER COMMUNITY EXPO Mr. Boganey introduced the item and provided an update on the Brooklyn Center Community Expo. He stated details are still being developed. This is being.provided as information and invitation to the Council. Mr. Boganey was commended for the open communication and assisting the citizens in understanding City operations. ADJOURNMENT Councilmember Lasman moved and Councilmember Ryan seconded to close the Study Session at 6:58 p.m. Motion passed unanimously. 02/25/08 -3- City of Brooklyn Center F-1 COPY A Millennium Community MEMORANDUM COUNCIL/EDA WORK SESSION DATE: February 21, 2008 TO: Brooklyn Center City Council/EDA FROM: Curt Boganey, City Manaj�l SUBJECT: 2011 Brooklyn Center Celebration COUNCIL ACTION REQUIRED The attached is presented in response to the Council direction. We have provided an outline and suggested way the City might proceed to begin planning for the 100 year celebration. These ideas are in large based upon the examples of other cities that have supported or sponsored similar celebrations. We look forward to your feedback and recommendations regarding these ideas and suggestions. BACKGROUND COUNCIL POLICY ISSUES GACity ManageAWORKSESSION.MEMYRM.doc .n l 3 1 h reek Parkway Recreation and Communi Center Phone TDD Number o S hingle y y Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityofbrooklyncenter.org COUNCIL ITEM MEMORANDUM TO: Curt Boganey, City Manager FROM: Vickie Schleuning, Assistant to the City Manager DATE: February 25, 2008 SUBJECT: Brooklyn Center Centennial Celebration Event Recommendation: Staff is seeking direction from the Brooklyn Center City Council regarding the setup and organization of the Centennial Celebration Event. Background: The City of Brooklyn Center will be celebrating its 100 Birthday on February 14, 2011. Since this is a momentous occasion, planning and organization of these types of Celebrations often occurs over several years. Therefore, a draft of the Centennial Celebration Project Outline is included for your review and to facilitate discussion. This outline also includes a draft of the Mission and Committee Goals and Guiding Principles. It is anticipated that the first phase of the project, to establish a Centennial Celebration e Committee, may begin as early as March 2008. This Committee will plan, organize and comprised implement the Celebration Event. It is suggested that the Committee of various b p gg P members that will represent the community. We believe it is important that the Committee broadly represent the community- ages, ethnicities, cultures, genders, neighborhoods, etc. Your input regarding the vision for the Celebration Event and the makeup of the Committee is needed. Budget Issues: The City has started budgeting $5,000 per year for the Centennial Celebration Event, beginning fiscal year 2008. If this funding rate continues, $15,000- $20,000 would be available for the Celebration. Depending on the scope and size of the Celebration, other fundraising activities may be required and are common for these types of Celebrations. Attachments: Draft Centennial Celebration Project Outline