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Home My WebLink About2004 11-08 CCP Regular Session Public Copy AGENDA CITY COUNCIL STUDY SESSION November 8, 2004 6:00 P.M. City Council Chambers 1. City Coi;2nci1 Discussion of Agenda Items and Questions 2. Discussian of Work Session Agenda Items as Time Permits 3. Miscellaneous 4. Adjourn CITY COUNCIL MEETING City of Brooklyn Center November 8, 2004 AGENDA L 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 rriake personal attacks, to air personality grievances, to make political endorsements, or for political campaign purpases. 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. 4. Roll Call 5. Pledge of Allegiance 6. Council Report 7. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the City Council and will be enacted by 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 —Councilmembers not present at meetings will be recorded as abstaining from the vote on the minutes. 1. October 25, 2004 Study Session 2. October 25, 2004 Regular Session 3. October 25, 2004 Work Session b. Licenses c. Resolution Establishing 2005 Street and Storm Drainage Special Assessment Rates d. Resolution Setting the Interest Rate on Special Assessments for 2005 e. Resolution Amendin Im rovement Pr 'ect 2 4- 4 g p o� No 00 1, Contract 2004-H, Slungle Creek Parkway Street, Storm Drainage, and Utility Improvements CITY COUNCIL AGENDA -2- November 8, 2004 f. Resolution Amending the 2005 Central Garage Budget to Provide for the Early Order/Purchase of One Tractor/Backhoe g. Resolution Accepting Quotation and Awarding Work to Valley-Rich Company, Inc. for Storm Sewer Repairs Along Northway Drive and Lyndale Avenue h. Resolution Authorizing Execution of a Utility Easement with CenterPoint Energy Minnegasco for Installation of Cathodic Protection Equipment within Palmer Lake Park 8. Public Hearing Item a. Consideration of Renewal Application for a Currency Exchange License Submitted by Community Money Centers, Inc. dba Money Centers, 6219 Brooklyn Boulevard -Resolution Authorizing Issuance of a Currency Exchange License to Community Money Centers, Inc. dba Money Centers, 6219 Brooklyn Boulevard, Brooklyn Center, Minnesota •Requested Council Action: -Open the Public Hearing. -Take public input. -Close the Public Hearing. -Motion to adopt resolution. 9. Presentation Items a. Bond Sale Resolutions -Resolution Accepting Offer on the Sale of $1,010,000 General Obligation Improvement Bonds, Series 2004C and Providing for Their Issuance -Resolution Accepting Offer on Sale of $17,245,000 T�able General Obligation Tax Increment Bonds, Series 2004D, Pledging Tax Increments for the Security Thereof and Authorizing a Pledge Agreement •Requested Council Action: -Motion to adopt resolutions. b. Dispatch Presentations 1. Dispatch Presentation and Questions: Cities of Minneapolis and St. Louis Park a. City of St. Louis Park a. Presentation by St. Louis Park Staff b. City Council Questions b. City of Minneapolis a. Presentation by Minneapolis Staff b. City Council Questions CITY COUNCIL AGENDA -3- November 8, 2004 2 Resolution Alternates For Hennepin County Offer to Pravide Dispatch Services a. Brooklyn Center Staff Presentation b. Hennepin County Sheriffls Department a. Presentation b. City Council Questions c. City Council Discussion of Hennepin County Offer to Provide Dispateh d. Motion to Adopt Resolution a. Resolution Accepting Hennepin County's Offer to Provide Dispatch Services OR b. Resolution Declining to Accept Hennepin County's Offer to Provide Dispatch Services to the City of Brooklyn Center 10. Plannin Commission Items g a. Planning Cammission Application Nos. 2004-010, 2004-011, and 2004-012 Submitted by ATS R, Inc. -Request for Preliminary Plat Approval to Divide and Combine the Willow Lane Early Childhood Center Property, Willow Lane Park Property. and Two Vacant Multi- residentially Zoned Properties at the Southwest Corner of 71 St Avenue North and Brooklyn Boulevard Into Three New Parcels of Land. The Planning Commission recommended approval of this application at its October 28, 2004, meeting. -Request for Rezoning from R-1 (One Family Residence), R-2 (Two Family Residence), and R-4 (Multiple Family Residence) to C-1 (Service/Office) of a 3.63 Acre Parcel of Land to be Created Under Planning Commission Application No. 2004-010. The Planning Commission recommended approval of this applieation at its October 28, 2004, meeting. 1. Resolution Regarding Disposition of Planning Commission Application No. 2004-011 Submitted by ATS R, Inc. 2. An Ordinance Amending Chapter 35 of the City Ordinances Regarding the Zoning Classification of Certain Land (Southwest Carner of 71 Avenue North and Brooklyn Boulevard) CITY COITNCIL AGENDA -4- November 8, 2004 -Request for Site and Building Plan Approval and a Special Use Permit for a Three Story, 48,600 sq. ft. Service/Office Building to House the Osseo School District's Adult Education program and a Non-profit Service Group Use. The Planning Commission recommended approval of this application at its October 28, 2004, meeting. •Requested Council Action: -Motion to adopt resolution. -Motion to approve first reading and set second reading and public hearing on December 13, 2004. -Motion to approve Planning Commission Application Nos. 2004-010 and 012 subject to the Planning Commission recommendations. 11. Council Consideration Items a. An Ordinance Amending Chapter 3 of the City Ordinances Regarding the Minnesota State Building Code •Requested Council Action: -Motion to approve first reading and set second reading and public hearing on December 13, 2004. b. Resolution Supporting an Improved Level of Right of Way Maintenance by Mn/DOT in the Twin Cities Metropolitan Area •Requested Council Action: -Direction on request from the City of Fridley. -Motion to adopt ar not adopt resolution. c. 2005 Public Utility and Service Charge Rate Study -Resolution Adopting 2005 Sewer Utility Rates, Fees, and Charges -Resolution Adopting 2005 Water Utility Rates, Fees, and Charges -Resolution Adopting 2005 Street Light Rates and Charges -Resolution Adopting 2005 Recycling Rates and Charges •Requested Council Action: —Motion to adopt resolutions. d. Resolution Appointing Independent Financial Advisor •Requested Council Action: —Motion to adopt resolution. e. Resolution Commending Election Personnel on Administering the November 2, 2004, General Election •Requested Council Action: —Motion to adopt resolution. 12. Adjournment i City Council Agenda Item No. 7a 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 CITY HALL COUNCIL CHAMBERS OCTOBER 25, 2004 CALL TO ORDER STUDY SESSION The Brooklyn Center City Council rnet in Study Session and was called to arder by Mayor Myrna Kragness at 6:05 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Kay Lasman, and Bob Peppe. Councilmember Diane Niesen was absent and unexcused. Also present were City Manager Michael McCauley, Assistant City Manager/Directar of Operations Curt Boganey, Director of Public Works/City Engineer Todd Blomstrom, Fiscal and Support Services Director Dan Jordet, and Deputy City Clerk Maria Rosenbaum. Councilmember Niesen arrived at 6:12 p.m. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS City Manager Michael McCauley discussed some clarifications to agenda item lOc, Resolutions Setting Bond Sales, and distributed sheets that outlined the coverage projections for the proposed tax increment bond sale. Councilmember Lasman questioned the useful life of seal coating with regards to agenda item 7c, Resolution Approving Change Order No. 3, Accepting Work Performed and Authorizing Final Payment, Improvement Project Nos. 2003-01, 02, 03, and 04, Contract 2003-A, 2003 Happy Hollow Neighborhood Street, Storm Drainage, and Utility Improvements. Director of Public Works/City Engineer Todd Blomstrom discussed that the pavement is sound and the seal coating will seal the surface; not make it any stronger. Councilmember Niesen arrived at 6:12 p.m. Councilmember Lasman questioned if there was sufficient time to submit the grant application with regards to agenda item lOd, Resolution Approving an Application to the Hennepin County Environmental Response Fund. Mr. McCauley discussed that the application forms have been prepared and are ready to be submitted if approved by the City Council. Councilmember Carmody questioned if the former owners of the dry cleaning operations and the gas station site would be responsible for any of the cleanup. Mr. McCauley discussed that the dry cleaning company will likely be responsible for its pollution. Regarding the previous gas station site, it is less certain as it was part of a previous cleanup. 1 Q/25/04 -1- DRAFT I I Councilmember Lasman asked if the owner had been notified that eminent domain might be used with regards to Economic Development Authority (EDA) agenda item 4a, Resolution Authorizing Submission of an Application to the Hennepin County Environmental Response Fund. Mr. McCauley informed that Community Development Director Brad Hoffinan had informally notified the owner of that possibility and that they are also discussing a potential development. Councilmember Niesen asked for clarification on TIF District No. 3 with regards to agenda item l Oc, Resolutions Setting Bonds Sales. She wanted to know if the City would have TIF District No. 3 forever and what would happen if the City did nothing with TIF District No. 3. Mr. McCauley discussed that TIF District No. 3 will end. If the City does nothing more in TIF District No. 3, the district would be decertified upon retirement of all outstanding obligations. Roughly $4.2 Million in debt service remains on current debt. There is also the pay as you go note potential for Brookdale. After the first quarter of 2005, the City cannot use tax increment other than for payment of obligations incurred prior to the end of the first quarter. Additionally, if the City did not spend the fund balance it currently has prior to that same time, those funds would be applied to the debt service sinking fund which would shorten the life of the district. Councilmember Niesen questioned what the next tool after TIF would be for the City. Mr. McCauley discussed tax abatement and grants. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS No time permitted for discussion of work session agenda items. MISCELLANEOUS Councilmember Niesen expressed that she would like to discuss the City Manager's annual review process; and that she hopes to have this done 2004, before Councilmember Peppe is departs. Mayor Kragness discussed that she had received a letter from the Sister Cities International regarding a membership. The membership is according to population and would be approximately $450. She questioned if the Council would like to consider a membership with Sister Cities International. It was the consensus of the Council to receive a copy of the letter received and to discuss again at a later date. ADJOURNMENT A motion by Counci�nember Lasman, seconded by Councilmember Carmody to adjourn the Study Session at 6:44 p.m. Motion passed unanimously. City Clerk Mayar 10/25/04 -2- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CE�TER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION OCTOBER 25, 2004 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 at 6:45 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Bob Peppe. Also present were City Manager Michael McCauley, Assistant City Manager/Director of Operations Curt Boganey, Director of Public Works%City Engineer Todd Blomstrom, City Attorney Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum. Troy Norberg, 5240 Drew Avenue North, addressed the Council regarding the rental license at 5240 Drew Avenue North. Mayor Kragness informed Mr. Norberg that there was an item on the agenda to discuss the rental license at 5240 Drew Avenue North. 2. INVOCATION Deacon John Winklema.n offered the Invocation. 3. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in Regular Session and was called to order by Mayor Myrna Kragness at 7:02 p.m. 4. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Bob Peppe. Also present were City Manager Michael McCauley, Assistant City Manager/Directar of Operations Curt Boganey, Director of Public Works/City Engineer Todd Blomstrom, City Attorney Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum. 5. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 10/25/04 -1- DRAFT I� 6. COUNCIL REPORT Councilmember Lasman mentioned that in the Twin Cities Business Magazine Brooklyn Center's new Caribou Coffee Headquarters was nominated as the Favorite Cup of Coffee in the Twin Cities and that she wished to congratulate them on that nomination. Councilmember Niesen reported that she and Councilmember Carmody had attended the Shingle I Creek Watershed Commission meeting and that the Council will be discussing future financing for capital projects. Mayor Kragness shared a letter she had received from a father who wished to remain anonymous about a problem he was having with his daughter and drugs. The letter outlined the problems that the father was having and the outstanding service received from Palice Officer Terry Olson. Mayor Kragness commended Officer Terry Olson and informed that she is aware of many other phone calls regarding other good Brooklyn Center Police Officers. 7. APPROVAL OF AGENDA AND CONSENT AGENDA There was a motion by Councilmember Lasman, seconded by Councilrnember Carmody to approve the agenda and consent agenda. Motion passed unanimously. 7a. APPROVAL OF MINUTES A motion b Councilmember Lasman seconded b Councilmember Carmod to a rove the Y Y Y PP October 4, 2004, Joint Work Session with Financial Commission and October 13, 2004, study, regular, and work session meeting minutes. Motion passed unanirnously. 7b. LICENSES A motion by Councilmember Lasman, seconded by Councilznember Carmody to approve the following list of licenses. Motion passed unanimously. MECHANICAL K B Mechanical Inc. 140 W. 98th Street, Bloomington PRIVATE KENNEL(No calls re�ardinQ do�s have been receivedl Lynn Amacher-Malm 5420 Fremont Avenue North RENTAL RenewaL Unity Place (112 Units) CHDC LTD Partnership (5300-5448 Ponds Drive) (7225-7274 Unity Avenue North) 10/25/04 -2- DRA.FT View Pointe at Shingle Creek (122 Units) Amcon (6221 Shingle Creek Pkwy.) Initial: 5417 Fremont Avenue North Leilani Flemister 7055 Perry Avenue North Tommy Nguyen 5906 Dupont Avenue North Bruce Goldberg 7c. RESOLUTION APPROVING CHANGE ORDER NO. 3, ACCEPTING WORK PERFORMED AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NOS. 2003-01, 02, 03, 04, CONTRACT 2003-A, 2003 HAPPY HOLLOW NEIGHBORHOOD STREET, STORM DRAINAGE AND UTILITY IMPROVEMENTS RESOLUTION NO. 2004-138 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION APPROVING CHANGE ORDER NO. 3, ACCEPTING WORK PERFORMED AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECTNOS. 2003-01, 02, 03, 04, CONTRACT 2003-A, 2003 HAPPY HOLLOW NEIGHBORHOOD STREET, STORM DR.AINAGE AND UTILITY IMPROVEMENTS The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Cannody. Motion passed unanimously. 7d. RESOLUTION AND CONSENT ORDER IMPOSTNG CIVIL PENALTY FOR HILTON MINNEAPOLIS NORTH RESOLUTION NO. 2004-139 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION AND CONSENT ORDER IMPOSING CIVIL PENALTY FOR HILTON NIINNEAPOLIS NORTH The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Carmody. Motion passed unanimously. 8. RANDOM ACTS OF KINDNESS PRESENTATION OF RECOG1vITION AND CERTIFICATE CEREMONY Mayor Kragness discussed that the City had received six nominations and are they as follows: 10/25/04 -3- DRAFT Nominee Nominated By Sander Anderson Lutheran Church of the Master. Pastors Joe and Judy Fornara Liz Beatly Spiritual Life Church Brown College Eric Stokes Anne Taylor Rich and Sharon Van Denbos Antoinette Johns Tndependent School District 286 She informed that she would like to present a certificate to those present while Councilmember Lasman read the nominations. Sander Anderson, Eric Stokes, and Rich and Sharon Van Denbos were presented a certificate by Mayor Kragness. 9. PUBLIC HEARTNG ITEM 9a. AN ORDINANCE REPEALING SECTIONS 19-301 THROUGH 19-310 OF THE CITY CODE OF ORDINANCES REGULATING THE PRESENCE OF MINORS UNDER THE AGE OF EIGHTEEN YEARS ON PUBLIC STREETS AND OTHER PLACES BETWEEN CERTAIN HOURS, AND DEFINING DUTIES OF PARENTS AND OTHERS IN CARE OF MINORS City Manager Michael McCauley discussed that this ordinance repealing Sections 19-301 through 19-310 of the City Code of Ordinances would remove the City's curfew ordinance. The City would then use Hennepin County's ordinance that is more restrictive, comprehensive, and uniform. A motion by Councilmember Lasman, seconded by Councilmember Carmody to open the Public Hearing. Motion passed unanimously. Mary O'Connor, 5429 Lyndale Avenue North, addressed the Council to question the curfew times for children under the age of 18 and what the duties of the parents would be under Hennepin County's Ordinance. Mayor Kragness read the following language from Hennepin County's Ordinance: SECTION 3: PROHIBITED ACTS •(A) It is unlawful for a juvenile under the age of 12 to be present in any public place or establishment within Hennepin County: o(1) any time �etween 9:00 p.m. on any Sunday, Monday, Tuesday, Wednesday, or Thursday and 5:00 a.m. of the following day. o(2) any time between 10:00 p.m. on any Friday or Saturday and 5:00 a.m. on the following day: 10/25/04 -4- DRAFT (B) It is unlawful for a juvenile, age 12 to 14, to be present in any public place or establishment within Hennepin County: o(1) any time between 10:00 p.m. on any Sunday, Monday, Tuesday, Wednesday, or Thursday and 5:00 a.m. of the following day. o(2) any time between 11:00 p.m. on any Friday or Saturday and 5:00 a.m. on the following day. •(C) It is unlawful for a juvenile, age 15 to 17, to be present in any public place or establishment within Hennepin County: o(1) any time between 11:00 p.m. on any Sunday, Monday, Tuesday, Wednesday, or Thursday and 5:00 a.m. of the following day. o(2) any time between 12:01 a.m. and 5:00 a.m. on any Saturday or Sunday. (D) It is unlawful for a parent or guardian of a juvenile knowingly, or through negligent supervision, to permit the juvenile to be in any public place or establishment within Hennepin County during the hours prohibited in paragraphs (A), (B) and (C) of this section. •(E) It is unlawful for a proprietor of an establishment within Hennepin County to knowingly permit a juvenile to remain in the establishment ar on the establishment's property during the hours prohibited in paragraphs (A), (B) and (C) of this section. If the proprietor is not present at the time of the curfew violation, the responding officer shall leave written notice of the violation with an employee of the establishment. A copy of the written notice shall be served upon the establishment's proprietor personally or by certified mail. Ms. O'Connor expressed that she believes Section{D) is unclear and that she does not like the idea of telling parents what to do with their children. City Attorney Charlie LeFevere discussed the defenses as outlined in Section 4 of Hennepin County's Ordinance and informed that the City would have no control over Hennepin County's Ordinance. Councilmember Lasman discussed that she had brought this issue to the table for discussion since the City's ordinance only addressed 16 years old and under. The City Council reviewed the City and Hennepin County's ordinances and believed that Hennepin County's ordinance would be more specific and uniform for all children under the age of 18. A motion by Councilmember Carmody, seconded by Councilmember Peppe to close the Public Hearing. Motion passed unanimously. ORDINANCE NO. 2004-21 Councilmember Lasman introduced the following ordinance and moved its adoption: 10/25/04 -5- DRAFT AN ORDINANCE REPEALING SECTIONS 19-301 THROUGH 19-310 OF THE CITY CODE OF ORDINANCES REGULATING THE PRESENCE OF MINORS UNDER THE AGE OF EIGHTEEN YEARS ON PUBLIC STREETS AND OTHER PLACES BETWEEN CERTAIN HOURS, AND DEFINING DUTIES OF PARENTS AND OTHERS IN CARE OF MINORS The motion for the adoption of the foregoing ordinance was duly seconded by Councilmember Peppe. Motion passed unanimously. 10. COUNCIL CONSIDERATION ITEMS 10a. RESOLUTION EXPR�SSING RECOGIVITION AND APPRECIATION FOR THE DEDICATED PUBLIC SERVICE OF OFFICER DARRELL KORTAN Mayor Kragness read the resolution expressing recognition and appreciation for the dedicated public service of Officer Darrell Kortan. RESOLUTION NO. 2004-140 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION FOR THE DEDICATED PUBLIC SERVICE OF OFFICER DARRELL KORTAN The motion far the ado tion of the fore oin resolution was dul seconded b Councilmember P g g Y Y Niesen. Motion passed unanimously. 10b. RESOLUTION EXPRESSING APPRECIATION FOR THE DONATION OF THE BROOKLYN CENTER WOMEN'S CLUB IN SUPPORT OF THE ANNUAL HALLOWEEN PARTY Mayor Kragness read the resolution expressing appreciation for the $100 donation of the Brooklyn Center Women's Club in support of the annual Halloween party. RESOLUTION NO. 2004-141 Councilmember Peppe introduced the following resolution and moved its adoption: RESOLUTION EXPRESSING APPRECIATION FOR THE DONATION OF THE BROOKLYN CENTER WOMEN' S CLUB IN SUPPORT OF THE ANNUAL HALLOWEEN PARTY The motion for the adoption of the foregoing resolution was duly seconded by Councilrnember Caimody. Motion passed unanimously. 0 10/25/04 -6- DRAFT lOc. RESOLUTIONS SETTING BOND SALES -RESOLUTION PROVIDING FOR COMPETITIVE NEGOTIATED SALE OF $1,010,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2004C -RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $17,245,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2004D Mr. McCauley discussed that the two resolutions before the Council this evening would be to call far a public hearing on November 8, 2004; and that one would finance special assessments and the other would be the sale of Tax Increment Financing bonds to be used for the City Council's redevelopment goals. RESOLUTION NO. 2004-142 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION PROVIDING FOR COMPETITIVE NEGOTIATED SALE OF $1,010,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2004C The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Peppe. Motion passed unanimously. RESOLUTION NO. 2004-143 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $17,245,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2004D The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Peppe. Motion passed unanimously. lOd. RESOLUTION APPROVING AN APPLICATION TO THE HENNEPIN COUNTY ENVIRONMENTAL RESPONSE FUND Mr. McCauley discussed that the Economic Development Authority (EDA) will be asked this evening to approve the submission of an application to the Hennepin County Environmental Response Fund. Before the EDA can approve this action, the governing body of the City must approve a resolution supporting the application. 10/25/04 -7- DRAFT Councilmember Carmody questioned the financial ramification to the dry cleaners and gas station located at the site_ Mr. McCauley discussed that the dry cleaner company will be looked to participate in remediation costs and that the gas station site was part of a previous closing and it was less certain as to their ongoing responsibility. RESOLUTION NO. 2004-144 Councilmember Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING AN APPLICATION TO THE HENNEPIN COUNTY ENVIRONMENTAL RESPONSE FUND The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 10e. RENTAL HOUSING LICENSE HEARING FOR 5240 DREW AVENUE NORTH -RESOLUTION RELATING TO RENTAL HOUSING LICENSE FOR 5240 DREW AVENUE NORTH City Attorney Charlie LeFevere outlined the background for a regular and provisional rental license and what he had proposed for purposes of conducting the hearing into the proposed provisional licensing for the property at 5240 Drew Avenue North. A licensee is not eligible for a regular license if the property has more than .65 police or fire calls per unit on an average in a proceeding one-year period. The one-year period that is looked at is the twelve months that ends two months before the end of the license period. 5240 Drew Avenue North currently has a regular license that expires on October 31, 2004. The twelve-month review period that is looked at to determine whether the premises has had an average of more than .65 calls per unit is from August 31, 2003, to Aug�st 31, 2004. A letter dated September 27, 2004, gave the owner of the property notice that the City Manager had determined that the regular license would not be renewed because the property was eligible only far a provisional license. The ground for this defermination was that the premises had received an average of more than .65 police or fire calls during the period. It was noted that the period for the amount of calls for service was actually less than year since it did not start wifh the typical one-year period because of the effective date of the ordinance. The actual date looked at for calls for service was October 4, 2003, to August 31, 2004. The notice also informed the licensee of his right to appeal the City Manager's decision to the City Council. IVIr. Troy Norberg of TNT, Managers of the property, responded to the notice that he would like to appeal the City Manager's decision to reinstate the regular rental license at 5240 Drew Avenue North. The hearing this evening is provided under City Code Section 12-910 (6). After the hearing the City Council would be required to issue a decision. In this case; however, there are no violations of the code. The question is whether the applicant is eligible only for a provisionallicense or a regular license. If the property generated more than .65 calls per unit during that period, and if it was reasonable and appropriate to count all of those calls, which is a decision initially made by the City Manager, then the property is eligible only for a provisional license. e 10/25/04 -8- DRAFT The City Manager deeided that more than .65 calls per unit were generated and that decision is being appeal. If the Council decides that the City Manager's decision was correct the Council can consider the resolution prepared for adoption. If the Council decides that the City Manager's decision is incorrect a resolution has not been prepared for the findings of overruling the City Manager's decision. That resolution would need to be based on the outcome of the hearing. If the Council concludes that the City Manager's decision should be overruled it was recommended that staff be directed to prepare appropriate findings for consideration at the next City Council meeting. Mayor Kragness read the resolution that had been prepared and a copy was provided to Mr. Norberg. Police Lieutenant Curt Lund addressed the Council to discuss that he had monitored the property during the one-year period and that the Police Department had marked this properry early as an apartment complex that was increasing its calls for service at a rate that would be over the .65 calls for service allowed by the ordinance. Mr. Lund discussed a memarandum that outlined the actions of the Police Department and the owners of the properly. It wa"s noted that the memorandum that was provided needed to be clarified that the 1.40 calls for service per unit as of August 31, 2004, was actually 1.5 calls for service per unit; and that the property code violations on March 15, 2004, was not counted as a call for service. Mr. Lund informed that in Apri12004 he had contacted the owner James DeBillis at which time the calls for service reached had .3 or .35 and met with Mr. DeBillis to discuss a solution of lowering the calls for service so that they did violate the ordinance. After that meeting the calls for service continued on a regular basis. Councilmember Lasman expressed that she believes the background data was thorough on the calls for service and that the decision may be even more than a little bit fair since there were seven violation calls that could have been counted that were not counted. Mr. Lund informed that they were somewhat lenient with the property since the apartment complex is small; and the calls for service were believed to be fair. Councilmember Carmody asked about the concerns that Mr. DeBillis had as a retaliatory action of a tenant and asked that Mr. Lund cover how the City would know that it is not someone retaliating against the landlord. Mr. Lund discussed that when they look at the calls for service they have to justify their actions as far as counting a call for service. If they are getting one apartment calling on another apartment because they do not like them and the officers get there and there is no obvious violation, that call is not counted. A motion by Councilmember Lasman, seconded by Councilmember Carmody to open the Hearing. Motion passed unanimously. 10/25/04 -9- DRAFT Troy Norberg, TNT Management, addressed the Council and discussed that he had taken over the management at 5240 Drew Avenue North approximately three and a half months ago. He believes that at the end of last year the property had problematic tenants. Since he started managing the property three units are now vacant from the problematic apartments that were causing the calls. He informed that he also has two more units that are also vacant with a total of five units vacant out of a ten unit complex. Mr. Norberg discussed that in the last two months he has worked approximately 80 hours a week and believes that he has veered all of the problems that the property has been caused and has been causing over the last year. Mayor Kragness questioned if the Council is upholding the City Manager's decision and if a mitigation plan action is the next direction for the property. Mr. McCauley discussed that the Council needs to hear Mr. Norberg's comments and questions to determine whether or not it has been substantiated that they have more than .65 calls per unit in the applicable period. If the Council were to make that determination that a provisional license is required then part of the provisional license requires a mitigation plan. Mr. Norberg informed that since he has become the manager at the property he has tried to do his best at keeping the calls for service down and that is why he asking that the Council consider a regular license to be reinstated for the property instead of having to go through a provisional license. Councilmember Niesen questioned the provisional license period and the earliest period of time that the property could be reinstated to a regular license. Mr. LeFevere discussed that they would have to have a one year provisional license and that the provisional license is looked at every six months. Assuming that the calls for service are less than .65 calls per unit before they can apply for a regular license the mitigation plan would be considered sufficient. The property would continue to be licensed under the provisional until the end of the one year period. A motion by Councilmember Lasman, seconded by Councilmember Carmody to close the Hearing. Motion passed unanimously. Mayor Kragness suggested that Mr. Norberg attend the Association for Rental Management meetings. RESOLUTION NO. 2004-145 Councilmember Lasman introduced the following resolution and mo�ed its adoption: RESOLUTION APPROVING AN APPLICATION TO THE HENNEPIN COUNTY ENVIRONMENTAL RESPONSE FUND The motion for the adoption of the faregoing resolution was duly seconded by Councilmernber Carmody. Motion passed unanimously. 10/25/04 -10- DRAFT 11. ADJOURNMENT There was a motion by Councilmemb�r Carmody, seconded by Councilmember Peppe to adj ourn the City Council meeting at 8:10 p.m. Motion passed unanimously. City Clerk Mayor 10/25/04 -11- 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 CITY COUNCIL WORK SESSION OCTOBER 25, 2004 CIT� HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Work Session and was called to order by Mayor Myrna Kragness at 8:21 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Bob Peppe. Also present: City Manager Michael McCauley, Assistant CiTy Manager/Director of Operations Curt Boganey, Director of Public Works/City Engineer Todd Blomstrom, and Deputy City Clerk Maria Rosenbaum. SHINGLE CREEK WATERSHED COMMITTEE UPDATE City Manager Michael McCauley discussed that Councilmembers Carmody and Niesen attended the first meeting of the Shingle Creek Watershed Management Commission City Committee meeting on October 14, 2004. The principal issues discussed at the meeting relates to the method by which capital projects are to be financed. This item is being brought to the Council for review since the next meeting is scheduled for November 4, 2004, and it is anticipated that the meeting will include the discussion of the significant policy question related to funding capital projects. Councilmember Carmody informed that she believes the meeting scheduled far November 4, 2004, is a regular Shingle Creek Watershed Management Commission meeting and not a meeting for the City Committee meeting. Council discussed the issue with audience members Graydon Boeck and City Attorney Charlie LeFevere. The discussions focused on the current and future responsibility of the Shingle Creek Watershed Management Commission and the participating member cities, as well as the process to be used for determining how to handle capital projects and funding. Mr. Boeck suggested that the participating member cities submit a list of capital projects that they would consider a priority and that more dialog could take place after the watershed commission has a list of all projects. 10/25/04 -1- DRAFT I� Director of Public Works/City Engineer Todd Blomstrom suggested that staff start looking at regulatory requirements and then anticipate how to see the projects in the future. Mr. McCauley suggested that the City get a hand on issues of what problems could be foreseen and that a list be provided on the regulatory requirements on how to translate and prioritize. It was the consensus of the Council to support another multi City meeting to follow up the first meeting organized by the City of Plymouth. BROOKDALE MALL UPDATE Mr. McCauley discussed that James Schlesinger had contacted Mr. Boganey regarding Brookdale Mall and inquired if the City would be able to help with obtaining a major tenant for Brookdale Mall. It was the consensus of the Council to have a message relayed that the Council would be willing to take about Brookdale Mall; however, in the absence of taxes and the unattended smoke suppressions issues would have no particular response at this time. MISCELLANEOUS Councilmember Niesen questioned if and when the Council could discuss the City Manager's annual review as a Council privately. Council discussed the dates af December 6, 2004, and December 13, 2004. ADJOURNMENT A motion by Councilmember Cannody, seconded by Councilmember Lasman to adjourn the Work Session at 9:37 p.m. Motion passed unanimously. City Clerk Mayor 10/25/04 -2- DRAFT City Council Agenda Item No. 7b City of Brooklyn Center A Millennium Community TO: Michael J. McCauley, City Manager FROM: Maria Rosenbaum, Deputy City Cl rk DATE: November 3, 2004 SUBJECT: Licenses for Council Approval The following companies/persons have applied for City licenses as noted. Each company/person has fulfilled the requirements of the City Ordinance governing respective licenses, submitted appropriate applications, and paid proper fees. Licenses to be approved by the City Council on November 8, 2004 are as follows: COMMERCIAL KENNEL Brooklyn Pet Hospital 4902 France Avenue North Cutting Edge Pet Care Inc. 4900 France Avenue North Gentle Touch Animal Sanctuary 4900 France Avenue North Pandora's Box Veterinary Clinic 4902 France Avenue North MOTOR VEHICLE DEALERSHIP Brooklyn Center Motors, LLC 6800 Brooklyn Boulevard 6301 Shin l g e 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 i City Council Agenda Item No. 7c MEMORANDUM aR oriYlv c�vrrsx DATE: October 20, 2004 TO: Michael McCauley, City Manager FROM: Todd Blomstrom, Director of Public Works TA�j' SUBJECT: Resolution Establishing 2005 Street and Storm Drainage Special Assessment Rates Each year the City Council establishes assessment rates for Rl, R2, and R3 residential zoned properties based on the City's Speeial Assessment Policy. Within these zoning districts, the assessment rate for street and storm drainage improvements is based on a unit amount that applies to all single family residential properties. The unit amount represents a specific portion of the average cost for reconstructing a typical residential street and storm drainage system. Street assessments for non-residential and R4 to R7 residential properties are computed separately for each project. The average cost per single family residential lot for street and storm sewer improvements was determined based on a 2-year running average of total street and storm sewer project costs using the 2003 Happy Hollow and 2004 Northport Neighborhood Street Reconstruction Projeets. The resulting average construction costs per lot are $7,190 per lot for street improvements and $2,438 per lot for storm drainage improvements. Staff recommends that a value of 40 percent (specific portion) be used to establish the street and storm drainage assessment rates for 2005. Using the historical construction costs provided above, this would result in a unit amount of $2,876 for street improvements and $975 for storm drainage improvements. The total assessment amount would be $3,851 per Rl single family residential lot for street and utility reconstruction projects in 2005. The total special assessment for the 2004 neighborhood reconstruction project was $3,698 per Rl residential lot. The total proposed rate increase would be 4.1 percent. This proposed increase would be less than the 6.7 percent increase in the ENR Construction Cost index between August 2003 and August 2004. Below is a summary of the project funding sources if the recommended special assessment rates are applied to the Lions Park South Neighborhood Project tentatively scheduled for 2005. The total funding amount is calculated based on the current project estimate of $3.5 million (2004 dollars) in the current Capita.l Improvement Program and includes 1841ots in the project area. Per Residential Lot Percent of TOTAL Special Assessments 3,851 20% Water Utility (City) 3,820 20% Sanitary Sewer Utility (City) 3,610 19% Storm Sewer Utility (City) 3,390 18% Street Light Utility (City) 290 2% Street Construction Fund/MSA (City) 4,113 22% Total $19,074 100% Member introduced the following resolution and moved its adoption: RESOLUTION NO. I RESOLLJTION ESTABLISHING 2045 STREET AND STORM DRAINAGE SPECIAL ASSESSMENT RATES WHEREAS, the residential assessment rates for street and storm drainage i improvements are annually reviewed and approved by the City Council; and WHEREAS, the residential assessment rates should be adjusted annually to be effective January 1; and WHEREAS, the 2005 street and storm drainage assessment rates for R-1, R-2 and R- 3 zoned districts are based on a specific proportion of 40 percent of the average cost for street and storm drainage improvements; and WHEREAS, the R-4, R-5, R-6 and R 7 zoned districts will continue to be assessed based on an evaluation of project cost and project benefit. NOW, THEREFORE, BE IT RESQLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1. The residential street and storm drainage special assessment rates for street reconstruction shall apply to properties in R-1, R-2 or R-3 zoned districts. These rates shall also be applied to parcels of property in other land use zones when such parcels (a) are being used as one-family or two-family residential sites at the time the assessment roll is levied; and (b) could not be subdivided under the then-existing Subdivision Ordinance. 2. T'he residential assessment rates for street and storm drainage reconstruction effective January 1, 2005 shall be as follows: Land Use 2005 Assessment Rates R-1 zoned, used as one-family $2,876 per lot (street) site that cannot be subdivided $975 per lot (storm drainage) RESOLUTION NO. Land Use 2005 Assessment Rates R-2 zoned, or used as a two-family $38.35 per front foot with a site that cannot be subdivided $2,876 per lot minimum (street) $13.00 per front foot with a $975 per lot minimum (storm drainage) R-3 zoned (per unit) Assessable fronta�e x$38.35 (street) Number of residential units Assessable fronta�e x $13.00 (storm Number of residential units 3. The residential assessment rates for street and storm drainage reconshuction shall nvt apply to R-4, R-5, R-6 or R-7 zoned districts. The assessment rates for street reconstruction for R-4, R-5, R-6 or R-7 zoned property shall be based on an evaluation of the project cost and the project benefit for each project. 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 i City Council Agenda Item No. 7d BROOKLYN CENTER MEMORANDUM DATE: October 21, 2004 TO: Michael McCauley, City Manager FROM: Todd Blomstrom, Director of Public Works SUBJECT: Resolution Setting the Interest Rate on Special Assessments for 2005 Each yeax the City Council establishes interest rates for special assessments levied against private property based on the City's Special Assessment and Internal Loan Interest Rate Policy. For special assessments, this policy states that the goal is to not unfairly burden the property owner, but yet recover the cost of borrowing from outside sources, recover the cost of administering the special assessments, and protect the City from the possibility that special assessment prepayments might impair the City's ability to service the bonds. Staff is recommending that the City Council adopt an interest rate on special assessments pursuant to the sale of the General Obligation Improvement Bonds, Series 2004C scheduled for City Council consideration on Monday, November 8�`. If this recommendation is acceptable, the resulting special assessment interest rate would be calculated by reviewing the interest rate from the bond sale offer on November 8�', adding two (2) percent to cover the overhead costs described above, and rounding to the nearest one-half percent in accordance with the Interest Rate Policy. Attached for consideration is a draft resolution setting the interest rate for special assessments for 2005. The draft resolution does not include a specific rate at this time. A revised resolution with the final interest rate based on the proposed bond sale will be provided for consideration at the City Council meeting. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION SETTING THE INTEREST RATE ON SPECIAL ASSESSMENTS FOR 2005 WHEREAS, the City Council levies special assessments for neighborhood street projects, delinquent utility bills and other services provided to property owners that go unpaid; and WHEREAS, amounts outstanding are certified to Hennepin County for collection with property taxes; and WHEREAS, by City Policy, interest is to be charged on outstanding amounts certified to Hennepin County for collection with property taxes; and WHEREAS, the interest rate to be charged is two percent over the net interest rate for the most recent City General Obligation bond sale rounded up to the next one-half percent; and WHEREAS, the most recent General Obligation bond sale resulted in a net interest rate of 3.42 percent. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the interest rate charged on outstanding special assessments for 2005 is 5.5 percent. 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 thereo£ and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 7e MEMORANDUM ax OOKLYN c�vT�n DATE: November 1, 2004 TO: Michael McCauley, City Manager FROM: Todd Blomstrom, Director of Public Works SUBJECT: Resolution Amending Improvement Project No. 2004-14, Contract 2004-H, Shingle Creek Parkway Street, Storm Drainage, and Utility Improvements The City's Capital Improvement Program includes planned improvements for Summit Drive between Shingle Creek Parkway and Trunk Highway 100. The proposed project is scheduled to include the complete replacement of pavement, spot replacement of curb and gutter, and replacement of water, sewer and storm sewer infrastructure as needed. This project was originally combined with the Earle Brown Drive Street Improvement ProjeGt, which is also scheduled for 2005. Staff is recommending that the reconstruction of Earle Brown Drive be rescheduled for 2006 to allow for the development of the proposed hotel site in 2005 before Earle Brown Drive is reconstructed. This would avoid multiple utility cuts in the new pavement that would be necessary to provide water and sewer service to the hotel site. On April 12, 2004 the City Council established Improvement Project No. 2004-14, Shingle Creek Parkway Street, Storm Drainage, and Utility Improvements. Engineering recommends that the proposed Summit Drive Project be combined with the Shingle Creek Parkway Project for 2005. This will allow both projects to be included in the same feasibility report and administered under the same construction contract. The action requested of the City Council at this time is therefore to amend the proposed Shingle Creek Parkway Project to include the reconstruction of Summit Drive and to allow initial fieldwork and data gathering to commence along Summit Drive. �Tpon authorization by the City Council, staff will complete field survey work, geotechnical investigations and televising of underground utilities. Staff will then include Summit Drive in the feasibility report currently being prepared far Shingle Creek Parkway. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AMENDING IMPROVEMENT PROJECT NO. 2U04-14, CONTRACT 2004-H, SHINGLE CREEK PARKWAY STREET, STORM DRAINAGE, AND UTILITY IMPROVEMENTS WHEREAS, the City's Capital Improvements Program identifies Summit Drive between Shingle Creek Parkway and State Trunk Highway 100 for reconstruction in 2005; and WHEREAS, the City Council desires to combine the reconstruction of Suxnmit Drive with the reconstruction of Shingle Creek Parkway in 2005; and WHEREAS, the City Council desires to begin the process of information gathering, preliminary design and solicitation of public comments. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesata that: l. Improvement Project No. 2004-14, Shingle Creek Paxkway Street; Storm Drainage, and Utility Improvernents, is hereby amended to include Summit Drive from Shingle Creek Parkway to State Trunk Highway 100. 2. Staff is directed to begin fieldwork and preliminary design, and contact property owners in the project to obtain comments and input. 3. Estimated project costs and revenues for the above stated work are as follows: COST AMOUNT Sewer Televising and Geotechnical 5,000 Engineering Surveying 3,500 Estimated costs 8,500 RESOLUTION NO. REVENUES AMOUNT Sanitary Sewer Utility Fund 1,500 Water Utility Fund 1,500 Storm Sewer Utility Fund 2,500 Street Construction Fund 3,000 Estimated Revenues 8,500 Date Mayor ATTEST: i 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. 1 1 1 RI 1 �i .�11//��/ �C �C :�E �1 ��ifi -a� �i f�� E ��1�� i �i ��R��e��►i�;� ��!��i�.�� !�I!��/,►� }iu►r ��r tii��'�i�i ��1� ii��i ti��i 1 ��1��I i ��r*�:� ��i��iti�+ r a ...n� A :y, :J� �iZi ii(�fV 7� N In7� ti r.7� F �7F .•T.S:'/1 ,�1 ,;4;.., E !n c it'L:[I� w ��n M iE �i i� ii ��e �i �E .!rr!!sn :�1� �ti �r �E' �E �trrsa 1 �i' 1 o� ��111111�� ,�1:1�� i� y� �p 1��,.•',+'� �y �/�R�;? �i �i 11 �1111��1�� 11,�11�11�� I�� i �C n j_ 7 �E �1�� 1� �s� 3 a�� 1!1� w�I ��A�� rs `f �1 r: ii��'�� !!1T .maR� �`�i ri y L C��n�� C� ��=i .�IiL�ii�iY�1 s C III�I�III� C i C� CC G� „,u,� ,�,�I�a �r�. City Council Agenda Item No. 7f MEMORANDUM sxooiYN cr�vrrn DATE: November 2, 2004 TO: Michael McCauley, City Manager FROM: Todd Blomstrom, Director of Public Works SUBJECT: Resolution Amending the 2005 Central Garage Budget to Provide for the Early Order/Purchase of One TractorBackhoe The Central Garage vehicle replacement schedule for 2005 includes the replacement of the City's tractor/backhoe. This equipment item is used extensively for excavating water main breaks, repairing sanitary and storm sewers, replacing sidewalks and loading salt onto plow trucks for ice control. The 1992 model tractor/backhoe is on a 12-year replacement schedule in order to minimize overall operation and maintenance costs. Four tractor/backhoe vendors currently participate in the State of Minnesota Cooperative Purchasing Venture. These four vendors have indicated that prices will increase between 5 and 15 percent in 2005 due to a significant increase in steel prices over the past year. The 2004 state bid equipment prices for tractor/backhoes are locked until November 30, 2004. Staff recommends that the City place an order for the replacement tractor/backhoe before November 30 to avoid the anticipated increase in replacement costs next year. The four backhoe vendors that participate in the sta.te bid include Caterpillar, Case, John Deere and Volvo. Public Works equipment operators evaluated each vendor brand based on price, visibility/safety, maintenance, operation of equipment attachments and reliability. Based on these criteria, staff recommends the purchase of the Caterpillar model. The City's current Caterpillar equipment has performed well with minimal repairs, reliable performance and stable trade-in values. The Central Garage has accumulated replaeement funds from the Water Utility Division in the amount of $99,000.00 for the replacement of the tractor/backhoe. The replacement cost would be $83,855 after trade-in under the current 2004 state bid. Equipment delivery will be after January 1, 2005. Payment would be due within 30 days after delivery. Attached for consideration is a City Council resolution authorizing the early order of one Caterpillar tractor/backhoe as part of the State of Minnesota Cooperative Purchasing Venture. i Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AMENDING THE �2005 CENTRAL GARAGE BUDGET TO PROVIDE FOR THE EARLY ORDER/PURCHASE OF ONE TRACTOR/BACKHOE WHEREAS, the City's tractor/backhoe is scheduled for routine replacement in 2005 after 12 years of service; and WHEREAS, it is expected,that $99,000.00 in accumulated depreciation funds from the Water Utiliry will be available in the 2005 Central Garage capital outlay budget; and WHEREAS, a minimum of 60 to 120 day delivery time and rising steel prices makes immediate ordering preferable for 2005 delivery and payment; and WHEREAS, it is possible for the City of Brooklyn Center to participate in the Minnesota State Cooperative Purchasing Venture for the replacement of said equipment; and WHEREAS, a replacement tractor/backhoe is available on the State Contract #SEQ 726-1003 from Ziegler Inc. at a total estimated cost of $83,855. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, IViinnesota that the early order purchase of one tractor/backhoe under the Minnesota. State Cooperative Purchasing Venture at a total estimated cost of $83,855 is hereby approved. 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. City Council Agenda Item No. 7g MEMORANDUM axo iYlv c�n� DATE: November 2, 2004 TO: Michael McCauley, City Manager i FROM; Todd Blomstrom, Director of Public Works. "r"�� SUBJECT: Resolution Accepting Quotation and Awarding Work to Valley-Rich Company, Inc. for Storm Sewer Repairs Along Northway Drive and Lyndale Avenue The City of Brooklyn Center recently soli�ited quotations from two qualified contractors for repairs to storm sewer along Northway Drive and Lyndale Avenue. The proposed work along Lyndale Avenue would involve the replacement of approximately 110 feet of storm sewer from the existing catch basin on the east side of Lyndale Avenue to the Mississippi River bank. This 1952 corrugated metal storm sewer has collapsed near the riverbank due to corrosion. The proposed work along Northway Drive would include the replacement of approximately 55 feet of 12-inch storm sewer that is beginning to collapse and is resulting in minor settlement of the roadway. This segment of storm sewer was originally installed in 1967. Storm sewer replacement and restoration would be completed by November 24, 2004. Quotations were requested from S.R. Weidema, the City's contractor for the Northport Neighborhood Project, and Valley-Rich Company. S.R. Weidema declined to submit a proposal for the work due to scheduling limitations and workload demands. Valley-Rich Company submitted a proposal for the total lump sum amount of $20,800 to complete both storm sewer repairs at the two locations. Attached for City Council consideration is a resolution accepting the quotation and awarding the storm sewer repair work to Valley-Rich Company in the amount of $20,800.00. j I I Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ACCEPTION QUOTATION AND AWARDING WORK TO VALLEY-RICH COMPANY, INC. FOR STORM SEWER REPAIRS ALONG NORTHWAY DRIVE AND LYNDALE AVENUE WHEREAS, pursuant to a solicitation for quotations �for the repairs of storm sewer along Northway Drive and Lyndale Avenue, quotations were received, opened, and reviewed by the City Engineer on the 19�' day of October, 2004; and WHEREAS, one quotation was submitted by Valley-Rich Company, Inc. for the total lump sum amount of $20,800.00 to complete the specified repair work. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the City Manager is hereby authorized to accept the quotation and authorize Valley-Rich Company, Ina of Chaska, Minnesota to proceed with the storm sewer repair work according to the plans and specifications therefore approved by the City Council and on file in the office of the City Engineer. The cost of said storm sewer repairs shall be charged to the Storm Sewer Utility Fund. 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. /VI1� 59"�+�' CITY OF BROOKLYN CENTER STORM SEWER REPLACEMENT PROJECTS The City of Brooklyn Center is requesting a quote for the completion of the two storm sewer projects as described below. Please contact John Harlow Supervisor of Streets and Parks with quotes or questions at 763-585-7104. Payment for the project will be a lump sum for both locations. NORTHWAY DRIVE Replace 55 feet of 12" storm sewer pipe across Northway Drive between existing catch basin structures. Saw cut, remove and dispose of bituminous over excavation azea Excavate, remove and dispose: of existing pipe Insta1112" HDPE pipe between existing structures Back fill and compact excavation per Spea 2211-100% maximum density 8" aggregate base Class 5 Spec. 2211 Bituminous pave 2" type 2350 LV 3 non-wearing course, 1.5" type 2350 LV 3 wearing course Provide traffic control per MN MLJTCD Part VI Field Manual Pipe replacement and bituminous paving shall be completed the same day LYNDALE AVENUE Replace approximately 112' of storm sewer pipe and apron, from the existing catch basin on the east side of Lyndale Avenue at 56�' Avenue, easterly down the Mississippi River bank to the high water line termination. City of Brooklyn Center will saw cut trail and remove bituminous prior to excavation Excavate, remove and dispose of existing pipe Install 18" HDPE storm sewer pipe from existing catch basin down river bank and install apron Back fill and compact excavation per Spea 2211-100% maximum density, leaving sub-grade backfi116.5" below finished trail elevation at trailway. Provide traffic control per MN MUTCD Part VI Field Manua1 City of Brooklyn Center to complete bituminous paving, site restoration and seeding See attached aerial photos. Contact John Harlow Supervisor of Streets and Parks to review site or answer questions 763-585-7104. r M -.�1 j 5 �kf j j f t l �f�.�. ..:,J b 5 e ��4. i ..4 a. r� l'c t ,i, R :4. f 1 A s k t w g x i ::Y ,f� k K' S r ,5 e. 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City Council Agenda Item No. 7h i MEMORANDUM axooiYN cr�rrx DATE: November 2, 2004 TO: Michael McCauley, City Manager FROM: Todd Blomstrom, Director of Public Works SUBJECT: Resolution Authorizing Execution of a Utility Easement with CenterPoint Energy Minnegasco for Installation of Cathodic Protection Equipment within Palmer Lake Park CenterPoint Energy Minnegasco has submitted a request for a utility easement within Palmer Lake Park as illustrated on the attached figure. The requested easement would allow CenterPoint to install a rectifier unit for the cathodic protection of steel natural gas mains located along 69�` Avenue North. Cathodic protection generally consists of ineasures to minimize corrosion ar rusting of underground metallic utility pipes. The attached easement was prepared by the City Attorney. CenterPoint Energy has indicated that the terms of the easement are acceptable. CenterPoint has also agreed to avoid the removal of trees within the park during installation of the proposed equipment. The easement would not prohibit the City from maintaining or replacing the existing pedestrian trail along the north side of 69 Avenue North. The above ground portion of the rectifier unit would essentially consist of equipment installed within a 16-inch wide by 14-inch deep by 25-inch 'tall steel utility box mounted on a concrete pad located adjacent to an existing Xcel Energy electrical transformer. Attached for consideration is a City Council resolution authorizing the Mayor and City Manager to execute a utility easement with CenterPoint Energy Minnegasco for the installation of the rectifier unit and associated underground equipment within Palmer Lake Park. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF A UTILITY EASEMENT WITH CENTERPOINT ENERGY MINNEGASCO FOR INSTALLATION OF CATHODIC PROTECTION EQUIPMENT WITHIN PALMER LAKE PARK WHEREAS, CenterPoint Energy Minnegasco desires to acquire a utility easement within Palmer Lake Park from the City of Brooklyn Center to allow the insta.11ation of a rectifier unit and underground structural cables to provide cathodic protection of steel natural gas mains located along 69�' Avenue North in Brooklyn Center; and WHEREAS, the City Attorney has drafted an easement agreement based on the request of CenterPoint Energy Minnegasco for consideration by the Brooklyn Center City Council; and WHEREAS, the location and dimensions of the easement area and terms of the easement are described in said easement agreement document cunently on file at the office of the City Engineer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that the Mayor and City Manager are hereby authorized to execute an easement agreement with CenterPoint Minnegasco to allow installation of a rectifier unit and underground structural cables to be located north of 69�' Avenue North within Palmer Lake Park. 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. CenterPoint 700 West Linden Avenue P.O. Box 1165 Energy Minneapolis, MN 55440-1165 Mll1ne9'aSCO September 13, 2004 Todd A. Blomstrom, P.E. Director of Public Works City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN. 55430-2199 RE: Proposed CenterPoint Energy Minnegasco easement #200421 Dear Mr. Blomstrom CenterPoint Energy Minnegasco has numerous natural gas mains made with steel located throughout our natural gas distribution system. To safely protect these steel gas mains from rusting and to avoid leaks, CenterPoint Energy Minnegasco protects these steel natural gas mains sometimes using rectifiers. I have enclosed three copies of an easement CenterPoint Energy Minnegasco would like to obtain over a 15.00-foot wide strip located just north of 69�' Avenue in Palmer Lake park. This proposed easement is only for an above ground rectifier pad mount and underground structure cables for the cathodic protection of a gas main located in 69"' Avenue North, a.k.a. County Road 130. As we discussed a few months ago we retained a Registered Land Surveyor to create the legal description of the easement. The last page of the document has a drawing showing the exact location of the proposed easement. After the installation of the above ground rectifier pad mount and underground structure cables, your property will be restored to existing conditions. To reiterate, this easement is only for the safety of the gas main and facilities located within 69�' Avenue North, and not for an additional gas main. I have also enclosed two copies of the survey that is also attached as Exhibit "A." If everything is in order, please forward two executed copies of the easement to me at the address below. If you have any questions about the field installation, please call Joel Beggs at 612.321.5328. After your review, please call me at 612.321.5381 at your earliest convenience to discuss. Respectfully, CENTERPOINT ENERGY MINNEGASCO s� Steven Von Bargen Ri ht-of-Wa Administrator 9 Y S ev t en.VonBarqen CenterPointEnerpv.com pc: Joel Beggs, Corrosion Mechanic i CenterPoint 700 West Linden Avenue PO Box 1165 Ene� Minneapolis, MN 55440-1165 I V►ICII �Ggc`�SCO November 1, 2004 Mr. David Peterson Deputy Director of Public Works City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 Re� Cathodic Protection Facility 69� Avenue North East of Shingle Creek Parkway Easement 2004-21 Brooklyn Center, Minnesota Dear Mr. Peterson� CenterPoint Energy Minnegasco ("Minnegasco") owns and operates existing natural gas pipelines along 69th Avenue North in the City of Brooklyn Center, Minnesota. These pipelines are necessary to provide natural gas service to the residents and businesses in the area. To provide adequate cathodic protection to this pipeline and others served for this pipelin.e Minnegasco intends, with City approval, to install a deep anode ground bed and associated facilities in an ea8ement, granted by the City, in Palmer Lake Park. The easement is described in Minnegasco Easement 2004-21. In conjunction with the installation of the deep anode ground bed, Minnegasco agrees to mitigate any agreed on interference with City of Brooklyn Center water facilities by installing magnesium anodes at the points of current discharge or the installation of a resistance bond at current discharge points caused by the deep anode ground bed. Minnegasco has NACE certified corrosion engineers and technieians on staff. In addition,Minnegasco uses the consulting servicea of Corrpro Companies, Ine. Should you have any questions please contact me. Thank you for your cooperation. Sincerely, ��„��I� Craig Reichert Supervisor, System Protection Field Services CenterPoint Energy Minnegasco 612-321-5348 Craig.Reichert@CenterPointEnergy.com Pc� Steve Yehle Joel Beggs Steve Von Bargen J J p n 1 1 1 1 t 1 t 1 cn 11 �i 1 i 1 o' 1, �1 1 L 1, t p 1 '1 �,c 1 N N p t^ f ti e�� x f t k w j f r f N �t. l ,k: s` o w a ,,1 m 1 f �S, r Y t ��1' �f X x -t k ;�r� .K \r \.^,�i s r 1\ L ,1( m �s.•6� A \i ��\i`� m l.. -1d•�!101.`..,� 1 \r r E� i ,j k 1 �J� r 1. 1 •t F k p j t� Y �l� l iy'S 1 ..�)i, :1�'lr�l•,/1"�.x.`4�� 1 �,x� i 1 �:I�; 1� z 1 r t, r` 2 `k r j/ r r 1 A�� v ni� f� O .fJ 1��' r ,7' r:�. c `t,'_ i x f .�1( S ti c ,-.i e �1� s �l t\.: Y' 'y�r ��x�;�' �l m S J r 1 i� Y Y, O N 'h�� P►. t t l E y r 7� j r i r �i 4� �C* C',��\� 1 r f R� p i. 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Y'�.k� ��.�i o k rT1,' y z X C \a r \�'l x �r t ,l \f .t ,x�"� .�f f A`i 1 �.ri 1� V o P i �i� x •1 l ;\'l e i' �F 1 L �y l ��l l y�\ 1 1�`:t r�\;• 1 C k 1.� z ..r\i 1!� f `C ,,f Y i,r i 1 l l. �i I 'V f j r 1 C P 1� f t v �i `y y '1 s �r r r ��(�i f' 1 s 11 ...>>..z r� �.:�;��c��: 1. 1 c ;t ft r i .i :t �f 1\ I �I��; l K I� y` �i\� l I ;c i �y'� ��l� j 1 k i \r'�Y��k�F;�� 1 ,��i' �f ��1'\� �,r i'S tir 1 1 1 i 1 i �,l 1 l l 1 i j ��,1 l t i t '1 `..i 1\ `1 1 1 1 y-i t t ti n 4`�• t Z N „��t i 1 :t i l l �.00 t 1 t �I 4 i 2004-21 Torrens #305960 EASEMENT THIS AGREEMENT made 2004, by and between the City of Brooklyn Center, a Municipal Corporation under the laws of the State of Minnesota, ("GRANTOR"), and CenterPoint Energy Minnegasco, a division of CenterPoint Energy Resources Corp., 800 LaSalle Avenue, 11�' Floor, Minneapolis, Minnesota 55402, a Delaware corporation ("GRAN'TEE"). 1. GRANTOR, in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration to GRANTOR from GRANTEE, receipt of which is acknowledged, quit claims to GRANTEE, its successors and assigns, forever, a perpetual non-exclusive 15.00-foot easement at all times to lay, construct, inspect, protect, operate, maintain, alter, abandon, relocate, replace, substitute and remove an above ground rectifier pad mount and underground structure cables for the cathodic protection of natural gas mains not located in the easement ("Gas Facilities") and appurtenances thereto in, under and upon the property in the City of Brooklyn Center, County of Hennepin, State of Minnesota, described on Attachment One, which is hereby made a part hereof ("Premises"). The easement is described on Attachment Two, which is hereby made a part hereof ("Easement Area"). CLL-253985v1 BR29i-10 S This grant of an easement shall include the right of GRANTEE to ingress and egress to and from GRANTOR's (or its successors and assigns) property for the purpose of excavating, laying, constructing, inspecting, protecting, operating, maintaining, altering, relocation, repairing, replacing, substituting and removing the property of GRANTEE in the Easement Area. GRANTEE also shall have the right to place signs and markers on the property as required by law or necessary in the judgment of GRANTEE to protect the interest of the public or property owner or to notify them of GRANTEE's easement, or Gas Facilities. The Gas Facilities and signs and markers shall be constructed and maintained in accordarice with the drawings and specifications attached as Attachment Three, which is hereby made a part hereof. 2. GRANTOR promises and warrants that it has the right to execute and deliver this instrument. 3. GRANTOR agrees that it will not interfere with GRANTEE's operation of its gas facilities or GRANTEE's easement rights. GRANTOR agrees that they will not encroach upon the Easement Area by erection of buildings or permanent enclosures that would interfere with the Gas Facilities located therein or that would unreasonably obstruct access thereto; provided, however, that GRANTOR shall have the right to use the surface of the Easement Area for gardens, shrubs, landscaping, curbing, gutters, streets, pedestrian trails, sidewalks and paving, or any other improvement and to install underground cables, conduits or utilities, except as previously excluded herein. 4. GRANTOR will noY perform or undertake any activity that damages or restricts the use of GRANTEE's Gas Facilities in the Easement Area. 5. GRANTEE agrees to construct the Gas Facilities to meet or exceed all applicable codes and ordinances. GRANTEE shall at all times exercise due care and diligence to avoid injury or damage CLL-253985v 1 2 BR291-10 to buildings, and other personal property of the GRANTOR, and the GRANTEE shall indemnify the GRANTOR from an dama e or loss arisin or occurrin to such ro e solel b reason of Y g g g P P�Y Y Y the construction, operation, maintenance, relocation, replacement, substitution or removal of said facilities. 6. In the event that use of the Gas Facilities is at any time discontinued by GRANTEE, GRANTEE shall have the right, and the duty, to enter upon the Easement Area and remove all or any portion of the Gas Facilities and appurtenances that have been placed on the Easement Area by GRANTEE, whereupon this Easement will terminate and be of no further force or effect; provided, however, that such terminadon will not release GRANTEE from its obligations under paragraph 5 hereof. Upon such termination, GRANTEE shall, upon written demand by GRANTOR, promptly provide to GRANTOR a written release of this Easement in recordable form. 7. The terms and provisions of this instrument shall run with the land, shall extend to and be din n 1 1 re resentatives successors and assi s. bm g upo GRANTOR and GRANTOR s he�rs, ega p gn fREMAINDER OF PAGE IIVTENTIONALLYLEFT BLANK.J CLL-253985v1 3 BR291-10 GRANTOR(s) City of Brookiyn Center B y' Its Mayor And by: Its City Manager STATE OF MINNESOTA ss. COUNTY OF The foregoing instrument was acknowledged before me this day of 2004, by the Mayor, and by the City Manager of the City of Brooklyn Center, a municipal corporadon under the laws of the State of Minnesota, on behalf of the municipal corpora.tion. Notary Public GRANTEE CenterPoint Energy Minnegasco, a division of CenterPoint Energy Resources Corp. By: Its Senior Vice President STATE OF MINNESOTA ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 2004, by Steven J. Holmstoen, Senior Vice President of CenterPoint Energy Minnegasco, a division of CenterPoint Energy Resources Corp., a Delaware corporation, on behalf of the corporation. Notary Public ATTENTION COUNTY RECORDER Please mail this documentsubsequent to recording to: TffiS INSTRUMENT WAS DRAFTED BY: Steve Von Bargen Kennedy Graven Chartered Rigth of Way Administrator 470 US Bank Plaza CenterPoint Energy Minnegasco 200 South Sixth Street P.O. Box 1165 Minneapolis, MN 55402 Mpls., MN 55440-1165 CLL-253985v1 4 BR291-10 Attachment One "Premises" 2004-21 Torrens #305960 Property in the City of Brooklyri Center, County of Hennepin, State of Minnesota, that part of the southwest'/4 of Section 26, Township 119, Range 21 lying west of Hipp's East Palmer Lake Addition and Halek's Addition, Property Identification Number 2611921310001. r D Q n s �r.00 m c o n �o �i �N ••I�N M.,,� Iw/l. a w L� I `4 �9 AYE �vo,�Tx �i i.:...e s.� ::e f m,c: N$9 33 �f 34�.�� .w :ir„ Proposcd Essemw Uacnpnon A I 5.00 foa cascmem wer. undcr and avoss all t1n� pan at' Uu Suwhwes� qwrtuofSeaion 3G. Townhip 119. Range 3t IlenneQin Couay. Minneson. dx «taerfine of said nsamam u desen'bed u foilows. Commenung at the Souchwac comar of said Sea�on =6: thence on an aswmed bearing of North 39 dcgrces 14 mimues 33 sacaMs E�st along chc Srnnh iinc oP the Saahwest quartcr of svd 2S s distaax of 543.09 teec thenec on a bcrrime oC Noe[h I decree 50 mirw�a Ob saonds F.�s� a d'ivance of7t:33 fm: thenee Wcxeb r de�sees 03 m��wta 01 umrMS Eau a �iiscancc ol�f1 q0 fee[ m �hc po�m oFbcYeimm�g ui w SCf�080RG ��mer ary �.rs a�., anawc am a mrp A.qm.aa une �Z� the oaateriinc ro bc desaibed: thaxc Swnh S dcauees 03 m�ewcx 01 sccc�nde Wes� a C LA�JDSi1RVEYfNG s War� an+. ai�•. BooK-a�GE divanceof90.00fea:thmeeSomhldegrr_�pmirnna06scnodsweuadis�anceof 11.57 [ea to [he Northerir RigM of Way lioe of 69" avawe Nonh and there said anc«liae cerminaaa. The sidelinc ol'said ea.........: iumirme u the Nort�rcrlr RigM af �F Way liae of 69'" Avawc Nartd. I aoQS�na,�ssa C/ %m.YT23Q! D�a n! Orc ,Q��i 20. �oC4 A�,. Nd 747C0 I Jr �I� r I H r ►H E G A.C. Y F tb�j U �0 c REAR VIEW Q CONDUIT KNOCKOUTS ;I Q I� 'B 12" A BOTTOM VIEW L K PERFORATED METAL CASE DIMENSIONS INCHES SIZE A B C E F G H 1 J K L q 14 12 20 3 15 20 3 7+/ 8 7�/z 5'/ B 17 15 24 8'/ 18 23 32 3 9 8 10 8'/ C 22 21 24 3'/ 24 28 32 3 9 10 15 14 p 28 22 23 3'/ 25 34 32 S 9 12 21 15 E 34 28 27 5 93 44 35 3 9 10 2g'/ 20 5 i 4�� f S \�F� T R �r �1� V V a: �1/u�J� ''�V? L+! E�f�.i v .r _L�'-�i�/i��w�t r �i� �I 1\ �ia�1 t/��r �i��' O .�'��u� l �c,'��r.! t 6�t c}�'U c�� L•'�i�/{11?'� L�tir7 'lr��f�2�S ��E.� c? i 1 a 1 `�1 y i .x G� ��t�; �G�T'C ��E�� fo 1��5 L`�:�� }v� I G�,/�� 5 �3 i '�i I •,�O �+,u` ��`ES�r�yU'�:: �t}t;j�• �1C� .�7�or.v� �I�LE.� I �t �SLUi��lc� �j N j I t i i�� M f �r�� i'1ZV�r �f'��'�u'�'� LF;�� a (J �1�11�t'"�'p� p �Date: Scale: I :-•��,.��,,�t t i City Council Agenda Item No. 8a Member introduced the following resolution and moved I its ado tion: P RESOLUTION NO. RESOLUTION AUTHORIZING ISSUANCE OF A CURRENCY EXCHANGE LICENSE TO COMMUNITY MONEY CENTERS, INC. DBA MONEY CENTERS, 6219 BROOKLYN BOULEVARD, BROOKLYN CENTER, MINNES T O A WHEREAS, Minnesota Statute 53A.04 requires the Minnesota Department of Commerce to submit any application for licensure as a currency exchange to the governing body of the municipality in which the eurrency exchange proposes to conduct business; and WHEREAS, the Minnesota Department of Commerce has received an application from Community Money Centers, Inc dba Money Centers, 6219 Brooklyn Boulevard, Brooklyn Center, Minnesota; and WHEREAS, the City of Brooklyn Center allows for such conduct on premises within the City of Brooklyn Center. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the issuance of a currency exchange license to Community Money Centers, Inc. dba Money Centers to operate at 6219 Brooklyn Boulevard is hereby approved. November 8, 2004 Date Mayor ATTEST: City Clerk i The motion for the adoption of the foregoing resolution was duly seconded by member i 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 adapted. I Office of the City 'Clerk City of Brooklyn Center A Millennium Community MEMORANDUM TO: Michael J. McCauley, City M er FROM: Sharon Knutson, City Clerk DATE: November 4, 2004 SUBJECT: Public Hearing: Consideration of Renewal Application for a Currency Exchange License Submitted by Community Money Centers, Inc. dba Money Centers, 6219 Brooklyn Boulevard Resolution Authorizing Issuance of a Currency Exchange License to Community Money Centers, Inc. dba Money Centers, 6219 Brooklyn Boulevard, Brooklyn Center, Minnesota The Minnesota Department of Commeree has received an application from Community Money Centers, Inc. dba Money Centers to renew its currency exchange license to operate at 6219 Brooklyn Boulevard, Brooklyn Center, Minnesota, and has forwarded a copy of the complete application to the City of Brooklyn Center far review. The City Council approved the renewal applieation last year at its October 27, 2003, meeting. Initial application was approved on July 26, 1999. Minnesota Statute 53A.04 requires the Minnesota Department of Commerce to submit any application for licensure as a currency exchange to the governing body of the municipality in which the currency exchange proposed to conduct business. The Statute requires the governing municipality to render a decision regarding issuance or denial of the license within 60 days; it also requires the governing municipality to publish notice of intent to consider the license (published in the Brooklyn Center Sun- Post October 21, 2004). Community Money Centers, Inc. dba Money Centers, has submitted to the Minnesota Department of Commerce a renewal application, along with the appropriate fee, current fee schedule used for cashing checks, surety bond in the amount of $10,000, and background investigation by the Bureau of Criminal Apprehension. Attached is a printout from Police Chief Bechthold regarding police activity at this location since November l, 2003. The applicant has been notified of the scheduled Public Hearing. Attachments 6301 Shingle Creek Parkwdy Recredtion 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. cityo fbrooklyncenter. org MINNESOTA DEPARTM£NT oF 85 7th Place East, Suite 500 COMMERCE St. Paul, Minnesota 55101-2198 5t.296.4026 FAX 651.297.1959 TTY 651.297.3067 ��iT- October 8, 2004 Ms. Sharon Knutson, City Clerk City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430-2199 CERTIFIED MAIL RE: Community Money Centers, Inc. License #20202409 Currency Exchange License Renewal for 2005 Dear Ms. Knutson: The above-named currency exchange licensee has made application to renew its currency exchange license to operate at: 6219 Brooklyn Blvd. Brooklyn Center, MN 55429 Pursuant to Minnesota Statutes Chapter 53A.04, we are forwarding a copy of the complete renewal application to the City of Brooklyn Center in care of your office for you to review. Minnesota Statutes Chapter 53A.04 requires the Department of Commerce to submit any application for licensure as a currency exchange to the governing body of the munieipality in which the currency exchange conducts business. The law further requires the governing body of the municipality to render a decision regarding the renewal of the license within 60 days. Your cooperation in forwarding this information to the proper unit within your organization is appreciated. Your reply must be received within 60 days of receipt of this letter. If you have any questions, please contact me at the telephone number listed below. Very ly yours, r o in H Brown Financial Examinations Division 651-282-9855 651-296-9851 (Fax) Enclosure Market Assurance: 1.800.657.3602 Licensing: 1.800.657.3978 Ener�y Information: 1.800.657.3710 Unctaimed Property: 1.800.925.5668 www.commerce.state.mn.us An Equal Opportunity Employer Q OLI BROOKLYN CENTER ``sY°F „oo.�;; POLICE DEPARTMENT MN MEMORANDUM TO: Sharon Knutson, City Clerk FROM: Scott Bechthold, Chief of Police DATE: October 12, 2044 SUBJECT: Money Centers Money Centers, 6219 Brooklyn Boulevard, has applied to the Minnesota Department of Commerce to renew its currency exchange license. This application must be forwarded to the governing body and a public hearing must be held, which is scheduled for November 8, 2004. Below, please find a report on operations at Money Centers since November 1, 2003: 12/11/03 Disturbing the Peace 03/03/04 Suspicious Activity 03/16/04 Disturbing the Peace 04/23/04 Forgery OS/14/04 Disturbing the Peace 06/ 19/04 Forgery 07/19/04 Disturbing the Peace 10/04/04 Forgery Please do not hesitate to contact me if you have further questions. 'J ��c� MINNESOTA 2004 LICENSE RENEWAL NOTICE ��j CURRENCY EXCHANGE COMMUNITY MONEY CE NTERS INC License Type: CURRENCY EXCHANGE �dba: MONEY CENTERS License Number: 20202409 6219 BROOKLYN BLVD BROOKLYN CENTER, MN 55429 Company Structure: CORPORATION Renewal Fee: $500 Phone Number: (763) 535-6872 Check this box if you will not be rertewing the license for the year 2005. AFFIRMATION• Returning the form will serve as a SURRENDER of the ticense. I hereby certify that the information and responses cantained in this renewal application are true and correct to the best of my knowledge and belief. Cary D. Geller President Name nn Title C� August 16th, 2004 Signature Date J� NOTARY SEAL Subscribed and sworn to, before me, a Notary Public, this��7'yday of ��cL'S 2004. j �l'[ C��i ��t,� ��I� State of i 1�1 �f f S '1� L a Notary Public Signature County of 6"� c r My commission expires G N D You must return this entire 2-page #orm with attachments, signed, along with your renewal payment, to X�� tk -o=w Minnesota Department of Commerce ��,2 D; Financial Examinations Division w o c Z 85 7th Place East, Suite 500 w�� St. Paul, MN 55101-2198 N r r_, o m, CORRECTIONS/AMENDMENTS: Make name, address or telephone number corrections dir.ectly on the form above. For a name change, attach a copy of the amended name filed and stamped by the Minnesota Secretary of State. If the company uses an assumed name in Minnesota and the name is not included in the above information, attach a copy of the Assumed Name Certificate from the Minnesota Secretary of State. P.O. Box addresses are not acceptable. Renewals without a street address will be retumed. TIMELY RENEWAL: The renewal form must be signed, notarized, and dated and returned with the correct renewal fee by Sept. 2, 2004. Pursuant to Minnesota Statutes, Chapter 53A.04(a), regarding the licensing of currency exchanges, both state artd local approval of the issuance and renewal of a currency exchange license is required. This process may take up to 120 days; therefore, you shoufd retum the required forms immediately to ensure a timely renewaL e If all required forms are not fully completed and returned to our office with payment by September2, 2004, your license will lapse effective December 31, 2004. If your license does lapse, you must reapply for a license using the license application form and paying the new license fees. A properly renewed license will be valid through December 31, 2005. RENEWAL FEE: NO CASH ACCEPTED. Please make check or money order payable to MN. DEPT. OF CQMMERCE. NOTICE: Dishonored checks will be assessed a$30 service fee by law and may result in failure to renew license. Renewal fees are non-refundable except that an overpayment of a fee wilf be refundable upon proper application. If you have questions, please contact the Financial Examinations Division by e-mail at financial.commerce@state.mn.us or bytelephone at (651) 282-9855. MONEY CENTERS 6219 BROOKLYN BLVD BROOKLYN CENTER, MN 55429 Page 1 of 2 I MINNESOTA 2004 LICENSE RENEWAL NOTICE CURRENCY EXCHANGE e following information must be completed as part of the renewal application: Attach to this form a list of the name(s), business and residence address, and o�cial title of each director, officer, limited or general partner, manager, shareholder holding more than ten percent of the outstanding stock of the corporation, and employees with authority to exercise management or policy control over the cornpany or member of the licensee. The list should contain the equity ownership of each person. 2. Each person listed in item 1 must request the Bureau _of Criminal Apprehension conduct a background investigation on the form provided. Completed forms must be submitted with your renewal application. 3. Attach a current fee schedule of all fees charged by the currency exchange o�ce for cashing checks, money orders or travelers checks. The list must include the type of checks cashed, the fees charged, and whether or not the fees vary depending on the amount of the check. 4. Attach the $10,000 Surety Bond (on the forms provided) with a power of attorney form. The bond must be effective January 1, 2005, until December31, 2005. 5. Does the licensee have employees at the currency exchange location? X Yes j No If yes, you must provide evidence of current workers' compensation insurance. Attach a copy of the certificate of insurance. 6. Does the licensee operate any other currency exchange locations? X] Yes No If yes, attach to this form the name of the location; the street address, city, state, zip code, and county. 7. Contact person for questions relating to licensinq issues: Community Money Centers, Inc.� Name Cary D. Geller President DBA Money Centers s Title Firm Name Street Address 6525 Nicollet Ave C� Richfield MN 55423 State/Zip Code carydgeller@msn.com Telephone Number 612 861-0420 Fax Number 612 866-4342 E-mail address 8. Contact person for questions relatinq to consumer complaints: Community Money Centers, Inc.� Name Cary D. Geller Title President dba�Ioney Centers Firm ame Street Address 6525 Nicoliet Ave City Richfield State2ip Code MN 55423 carydgeller@msn.eom Telephone Number 612 861-0420 Fax Number 612 866-4342 E-mail address 9. Contact person at the currency exchanqe location: I Name Rosa Hargrove Title �oordinator �treet Address 6219 Brooklyn Blvd C�t Brooklyn Center MN 55429 State/Zip Code Telephone Number 763 535-6872 Fax Number �63 533-6930 N/A E-mail address Page 2 of 2 August 16�', 2004 List of Owner Mana�er Cary D. Geller 100% President Money Centers 6525 Nicollet Ave. Richfield, NIN 55423 Residence: 6145 Arctic Way Edina, MN 55436 Richard P. Krietzman-Blazevic 0% Sec/Treasurer Money Centers 6525 Nicollet Ave. Richfield, MN 55423 Residence: 5520 24�' Ave. S. Minneapolis, MN 55417 :*s 1 f �,s"�"�.L Y s ix$ h:,) t r� Z r t W .�v .�x �Menca -�4 i 3 j r:.,� �1 t� Y r 1 rh 1 i� r x �.#tf �W ��r�.uaT ij�,es- �t� §t ro C� d e 1 :-p'" P k S x M1 r. i S x t ri ��E fst c Y z� S _Y t S�, r k� if t 7 4 0 1� c.� !Y x' h i a T`� e s...c i� r. 1c, '�e k�' S n 1 f"t'� L 4'. r S� t vY� t s Y }�,2 c a ct a� a� f k}"E��Y �J� Y i tt`' t �Y k 3" i Jt i._ t? t r tl'' 's�es �-c� �t�.� e' ..:�GrT,�Y d x t� A l u a� 4 rxy r 3 •zt j ^r yr i.., ?±7 j P d S; 9 ,c 4 M 3 5` I h yb S f V 5 F 4r :`.Z,"' G(.: k� 25 Y y i E r, z� -t: i �k t t�' e k 1 Y j 1 9 f ty 7 k k i 1 1 3 c w :i Y t,l:. :7� I r at, r� a 1..; �s kIt 4 3�' �L Y �r �".+`"''.'f7 t r y� F Y 1S1 �C 1_ f i`( q c S,. o i t v zk�',� ��F k i S t r. s ts t v� t h�� i M r'l 1 v ��k 5 Y r y, ..r, z �r ,y,x. ,t t r 4; r' .+a- �4:1 y Y t r� t `��Y k ry f�} R .p �t� P s S'k I� l 4 f ;_�i; i.Yr �3k.; f n'�:.�� Fy 'i ti t i 7 F 5 7;,; f t�' 2 �•i g C x j �r M txi'� 41. c.is' --t y z f 1 r z,� k �i t y' :t t •1 a 2�. r i,�t�� t F, k r fK 3 i �k z W P'"n 5 w �,w� lN� n;. ,y r ��L� y V t c k s� ,i; t a a Fi 4 .3�I ��t Sr c f xpi. v 4 i F 1 l�^'.3 r t,x �-.y� '.�t �sryx 4 T #S {'?t� i�N" £r f o v 5� i'-' Y rti F��'�.�.� T x�� 3d Y 4 i r f� r�.,r �'rr F 1^ e �rac"�` t v t t ^r_ i t i. L r g y.�y�� ni r 'k t L s 'k er+�. y k '�r ka n r �i r a a.. =°a f BOND NUMBER: 94792 Page 1 of 2 STATE OF MINNESOTA DEPARTMENT OF COMMERCE CURRENCY EXCHANGE SURETY BOND KNOW ALL PERSONS BY THESE PRESENTS: That Community Money Centers Inc dba Money Centers a Minnesota corporation (Name of Currency Exchange) (Description or form of business organization, including state of incoiporation) with business office at 6219 Brooklyn Boulevard, Brooklyn Center, MN 55429 (Street Address, City, State, Zip) as PRINCIPAL and II�IPIRE FIRE MARINE INSURANCE COMPANY OF OMAHA, NE (Name of Surety) a corporation duly organized under the laws of the State of Nebraska which is authorized to engage in the business of insurance in the State of Minnesota, as SURETY, are hereby held and firnzly bound to the Department of Commerce of the State of Minnesota in the sum of TEN THOUSAND DOLLARS ($10,000). Principal and Surety hereby bind themselves, their representatives, successors and assigns, jointly and severally by these presents. The parties further agree that: 1. The purpose of this obligation, which is required by Minnesota Stafutes, Section 53A.08, is to secure the compliance by Principal with the terms of Minnesota Statutes, Section 53A.02 to 53A.13, and any other legal obligations arising out of the Principal's conduct as a currency exchange. 2. This bond is for the benefit of the State of Minnesota and all persons suffering damages by reason of the Principal's failure to comply with Minnesota Statutes, Section 53A.02 to 53A.08, or other legal obligations arising out of Principal's conduct as a currency exchange. 3. If the Principal shall violate Minnesota Statutes, Section 53A.02 to 53A.08, or other legal obligations arising out of its conduct as a cunency exchange, the Commissioner of Commerce, as well as any person damaged as a result of such violation shall have, in addition to al] other legal remedies, a right of action on this band in the name of the injured party for loss sustained by the injured party. 4. This bond shall be effective from January 1, 2005 until December 31, 2005 (Year) Signed and Sealed this �nd day of August 2004 3 By; �PIRE FIRE MARINE INSUR.ANCE C0. B (Name of Surety) (Signature of Atto in act o Surety,Company) Community Money Centers Inc Ri H. i s dba Money Centers By: �i, (Name of Cunency Exchange) (Signatur� of Sole Proprietor, Partner, or President) Cary D. Ge11er, President FOR DEPARTMENT USE ONLY Approved as to form and execution by Department of Commerce. Date 1 MN/DOC CE BOND 7/1999 CURRENCY EXCHANGESURETY BOND 1. This page is to be completed by a notary public for both the Principal and the Surety. Page 2 of 2 2. Please attach the Power of Attorney and Certified Copy of the Corporate Resolution for the Surety listed herein. ACKNOWLEDGMENT OF PRINCIPAL �ATE OF MINNESOTA COUNTY OF l ss. (SOLE PROPRIETORSHIP) The foregoing instrument was aclrnowledged before me this day of .��'X by (Name of person aclrnowledged) NOTARY SEAL Notary Public (PARTNERSHIP/LIMITED LIABILITY COMPANI� The foregoing instrument was aclrnowledged before me this day of xxx� b Y a partner on behalf of (Name of aclrnowledging partner) a partnership. (Name of parinership/limited liability company) NOTARY SEAL Notary Publie .4" A :;:i�r .�k�k*�k**#***ak**#*#*�k**�k�k�K*##�k#�k #**�k#**�k�k**###�k�k�k�k#*�k*#�K�k ###�k#*#�k �ORPORATIOl� �/�1 r, The foregoing instrument was aclrnowledged before me this l 1�7 day of ITf UG, G�5' 1 a G a�'� i b y Ca.rv n. C'�ll.Pr_ Pr esi den t o f'`�Communi: f��, M o n C y C e n t e r I ri c` (Name of corporate president) dba Monev Centers a Minnesota "��corporation, on (Name of corporation aclmowledging) (state of incorporation) I behalf of the corporation. ,m �yl GG� NoT�RY s�EAL MARSHA ANN MILLER Notary Pub1ic Notary Public Minnesota y Commission ExpiresJan.31, 2005 ACKNOWLEDGMENT OF SURETY STATE OF T�1NESpTA COUNTY OF HENNEPIN 1 ss. The foregoing instrument was acknowledged before me this 2nd day of August 2004 by Richard H. Davies, Attorney-in-Fact (Name and title of officer or agent) of EMPIRE FIRE MARINE INSURANCE COMPANY OF OMAF-IA, NE (Name of corporation aclrnowledging) a Nebraska corporation, on behalf of the corporation. (state of incorporation) G��G�� NOT Y Notary Public PATRICIA J. ZASKE �r� Notary Public Minnesota My Commission Ezpires Jan. 31. 2007 2 MN/DOC CE BOND 7/1999 EMPIRE FIRE AND MARINE INSURANCE COMPANY OMAHA, NEBRASKA POWER OF ATTORNEY Know All Men by These Presents: That this Power of Attorney is not valid or in effect unless attached to the bond which it authorizes executed, but may be detached by the approving officer if desired. That EMPIRE FIRE AND MARINE INSURANCE COMPANY, a corporation duly organized under the laws of the State of Nebraska, and having its principal office in the City of Omaha, County of Douglas, State of Nebraska, does hereby make, constitute and appoint Richard H. Davies, Carolyn L. Davies, Matthew W. Davies, Jonathan S. Davies and Patricia J. Zaske its true and lawful Attomey(s)-in- fact, to make, execute, sign, seai and deliver for and on its behalf as surety and as its act and deed any and all bonds and undertakings of suretyship. NOT EXCEEDING IN AMOUNT One Million anc� No/100------ Dollars ($1,000.000.00 and to bind EMPiRE FIRE AND MARINE INSURANCE COMPANY thereby as fully and to the same extent as if such bonds and undertakings and other writings obiigatory in the nature thereof were signed by an Executive Officer of EMPIRE FiRE AND MARINE iNSURANCE COMPANY and sealed and attested to by one other of such officers, and hereby ratifies and confirms all that its said Attorney(s}-in-fact may do in pursuance hereof. This power of attorney is granted under and by authoriry of Article III, Section 3.1 of the By-Laws of the EMPIRE FIRE AND MARINE INSURANCE COMPANY and by Resolution of the Board of Directors duly adopted as follows: "All.bonds, policies, undertakings or other obligations of the corporation shall be executed in the corporate name of the Company by the Chairman of the Board, President, any Vice-President, Secretary, any AssistanYSecretary, or Treasurer, or by such other officers as the Board of Directors may authorize. The Chairman of the Board, President, any Vice-President, Secretary, any Assistant Secretary, or the Treasurer may appoint Attorneys in Fact or Agents who shali have authoriiy to issue bonds, policies, or undertakings in the name of the Company. The corporate seal is not necessary for the validity of any bonds, policies, undertakings or other obfigations of the corporation.° It is certified that the above is a true and exact copy. In Witness Whereof, the EMPIRE FfRE AND MARINE INSURANCE COMPANY has caused these presents to be signed by its President, and its corporate seal to be hereto affixed, duly attested by its Secretary this 15th day of ,1u1v_, 2004. Attest: EMPIRE FIRE AND MARINE INSURANCE COMPANY Secretary G President 2<<� STATE OF NEBRASKA ss. COUNTY OF DOUGLAS) On this �S�day of J��/, A.D. 2004, before me personally came John Kinsler to me known, whobeing by me duly swom, did depose and say: that he resides in the County of Douglas, State of Nebraska; that he is the Secretary of the EMPIRE FIRE AND MARINE INSURANCE COMPANY, the corporation described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to the said instrument is such corporate seal; thaf it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order. Signed and sealed at the City of Omaha. Dated day of ��a 2004. I 6EP�lL MOTARY State of Nebraska 7� j��// PAlJL/1, MIHULKA �I— 6'� QDtt�n, 6�, N{3rCh 10, 2008 Notary P�blic CERTIFICATE I, the undersigned, Secretary of the EMPIRE FIRE AND MARWE INSURANCE.COMPANY, A Nebraska Corporation DO HEREBY CERTIFY fhat the foregoing and attached POWER OF ATTORNEY remains in full force and has not been rev.oked; and furthermore, that the Resolutions of the Board of Directors set forth in the Power of Attorney are now in force. Signed and sealed at the City of Omaha. Dated the 2nd day of Au�ust 2V1�4 e�j�,�s+''yc�' Secretary EM 40 10 (06-04) Minnesota Workers' CompensaEion Assigned Risk P1an Standard Workers' Compensation and Empfoyers' Liability Poficy Contract Administrator e�u�,-A�k,�m""stra'�`°"",�"',"� Berkley Risk Administrators Company, LLC P.O. Box 59143 Minneapolis, Minnes�ta 55459=0143 Phone (612) 766-3000 NCCI Carrier Code 21466 OFFER OF RENEWAL 1. The �nsured: WCIP Poucy rvumber. wc-ZZ.o4-�ossoo-oz Community Money Centers Inc Association File Number: 2343436 dba: The Money Centers 6525 Nicollet Richfield, MN 55423 Tax ID#: F 460495234 UIC EXEMPT Expiring Policy Period From: 12/19/2002 REVISED OFFER To: �2��s�2oos Date of Mailing: 11/20/2003 This is an offer to renew your Workers' Compensation Policy i:;sued in accordance with the provisions of the Minnesota Workers' Compensation Assigned Risk Plan. Your current Workers' Compensation Policy will expire on 12l19/2003 at 12:01 a,m. and, coverage under that policy will terminate as of that date. Assuming that continuous coverage is needed or desired, an offer of renewal has been prepared. The required renewal deposit premium for the tenewal policy is stated below and is based on payroll estimates derived from your current policy or most recent payroll audit. These payroll estimates have been increased by an inflation fector to prevent a large additional premium from developing on the final audit. If your operations have changed materially and such changes will affect your payroll or classifications for the coming year, we will consider revising the deposit premium upon receipt of a complete explanation of the changes. If such a revision is necessary, please advise us at least 20 days prior to the expiration of your current policy. The indicated renewal deposit AND any past due premium must be received on or before the expiration date of your current policy to ensure continuous coverage, otherwise there will be a gap in coverage. If the correct payment has not been received 35 days prior to the expiration, we are required to notify the Department of Labor and Industry. If the correct payment is received prior to the effective date of the renewal policy, The Department of Labor and Industry will be notified that the policy is being renewed. Timely payment of the necessary premium will assure you of continous coverage. ecords indicate $0.00 as the past due premium. The amount necessary to renew is the total of the renewal deposit fhe past due premium. This is the only BILUNG you will receive in order to renew your policy. PREMIUM BASIS RATES ENTRIES IN THIS ITEM, EXCEPT AS SPECIFICALLY PROVIDED ESTIMATED TOTAI, PER $100 OF CODE ELSEWHERE IN THIS CONTRACT; DO NOT MODIFY ANY OF ESTfMATED ANNUAL REMUNERATION NO. THE OTHER PROVISIONS OF THIS POLICY. ANNUAL REMUNERATION PREMIUM S@@ SCII@CIUIB Manual Premium $1 ,ss�.00 Increased Limits Stat Code 9807 $50.00 Minimum Premium $204 Merit Rating Stat Code 0.67 ($571.00) Standard Premium $1,160:00 Adjusted Standard Premium $1,160.00 Expense Constant $145.00 Terrorism Coverage Stat Code 9740 $96.00 Estimated Annual Premium $1,401.00 Special Comp. Fund Surcharge Stat Code 0174 1.058 $67.00 Policy Total Estimated Cost $1,468.00 Net Deposit Premium Required $1,468.00 Amount necessary to renew: 51,468.00 AQencv Name and Address Rosenbloom Rosenbloom Inc 111 3rd Ave S Ste 400 Minneapolls, MN 55401-2519 BA3510 (4/95) 1240 288712 �I Minnesota Workers' Compensation Assigned Risk Plan Standard Workers' Compensation and Employers' Liability Policy Contract Administrator •�""`''�"`�'"'""'`°`°'s�°"�`" Berkley Risk Administrators Company, LLC P.O. Box 59143 Minneapolis, Minnesota 55459-0143 Phone (612) 766-3000 NCCI Carrier Code 21466 Schedule for MN Renewal Of No. WC-22-04-108600-02 1. The Insured: �Iti(C�P Policy Number: WG22-04-108600-03 Community Money Centers Inc Association File Number 2343436 dba: The Money Centers 6525 Nicoilet Tax ID#: F 460495234 Richfield, MN 55423 UIC EXEMPT Renewal Policy Period: From: 12/19/2003 To: 12/19/2004 Endorsement Eff. Date: 12/19/2003 Date of Mailing: 11/20/2003 REVISED OFFER PREMIUM BASIS RATES ENTRIES IN THIS ITEM, EXCEPT AS SPECIFICALLY PROVIDED ESTIMATED ESTIMATED TOTAL ANNUAL PER $100 OF CLASS ELSEWHERE IN THIS CONTRACT; DO NOT MODIFY ANY OF ANNUAL REMUNERATION REMUNERATION CODE THE OTHER PROVISIONS OF THIS POLICY. PREMIUM 6525 Nicollet Richfield MN, 55423 If Any 0.35 8810 CLERICAL OFFICE EMPLOYEES NOC gp 6525 Nicollet Avenue South Richfield MN, 55423 $70,000 0.35 8810 CLERICAL OFFICE EMPLOYEES NOC $245 6219 Brooklyn Blvd Brooklyn Center MN, 5542 $70,000 0.35 8810 CLERICAL OFFICE EMPLOYEES NOC $245 1532 University Avenue West St Paul MN, 55104 $105,000 0.35 8810 CLERICAL OFFICE EMPLOYEES NOC $368 2600 Nicollet Avenue South Minneapolis MN, 55408 $45,000 0.35 8810 CLERICAL OFFICE EMPLOYEES NOC $158 8132 Highway 7 Knollwood Mall St Louis Park MN, 55426 $60,000 0.35 8810 CLERICAL OFFICE EMPLOYEES NOC $210 2945 Dupont Avenue South Minneapolis MN, 55408 $70,000 0.35 8810 CLERICAL OFFICE EMPLOYEES NOC $245 Aaencv Name and Address Rosenbloom Rosenbloom Inc 111 3rd Ave S Ste 400 Minneapolis, MN 55401-2519 BA3511 Page 1 of 2 Minnesota Workers' Compensation Assigned Risk Plan Standard Workers' Compensation and Empioyers' Liability Policy Contra�t Administrator e""�,'�k°''""�U°"'S`°"'°°"'',"c Berkley Risk Administrators Company, LLC P.O. Box 59143 Minneapolis, Minnesota 55459-0143 Phone (612) 766-3000 NCCI Carrier Code 21466 Schedule for MN ftenewai Of No. WC-22-04-108600-02 1. The Insured: WC�P Policy Number: WG22-04-108600-03 Community Money Centers Inc Association File Number. 2343436 dba: The Money Centers 6525 Nicoliet Tax ID#: F 46Q495234 Richfield, MN 55423 UIC EXEMPT Renewai Policy Period: From: 12/19/2003 To; 12/19/2004 Endorsement Eff. Date: 12/19/2003 Date of Mailing: 11/20/2003 REVISED OFFER PREMIUM BASIS RATES ENTRIES IN THIS ITEM, EXCEPT AS SPECIFICALLY PROVIDED ESTIMATED ESTIMATED TOTAL ANNUAL PER $100 OF CLASS ELSEWHERE IN THIS CONTRACT; DO NOT MODIFY ANY OF ANNUAL REMUNERATION REMUNERATION CODE THE OTHER PROVISIONS OF THIS POLICY. PREMIUM 2006 Lyndale Avenue South Minneapolis MN, 55405 $60,000 0.35 8810 CLERICAL OFFICE EMPLOYEES NOC $210 Manual Premium $1,681.00 Increased Limits St 9607 $50.00 Experience Modi£ication $0.00 Merit Rating 0.67 ($571.00) MCPAP (Obsolete) $0.00 Standard Premium $1,160.OQ Aaencv Name and Address S Rosenbloom Rosenbloom Inc 111 3rd Ave S Ste 400 Minneapolis, MN 55401-2519 BA3514 Page 2 of 2 Minnesota Workers' Compensation Assigned Risk Plan Standard W�rkers' Compensation and Employers' Liability Policy Confract Administrator ��U�c��,r.uc gerkley Risk Administrators Company, LLC P.O. Box 59143 Minneapolis, Minnesota 55459-0143 Phone (612) 766-3000 NCCI Carrier Code 21466 Policvholder Disclosure Notice of Terrorism Insurance Coveraqe 1. The InSUred: WCIP Policy Number. WG22-04-108600-03 Community Money Centers Jnc Association File Number: 2343436 dba: The Money Centers 6525 Nicollet Tax ID#: F 460495234 Richfietd, MN 55423 UIC EXEMPT Policy Period: From: 12/19/2003 To: 12/1912004 Date of Mailing: 11/20/2003 Coverage for acts of terrorism, as defined in the Terrorism Risk Insurance Act of 2002 (the "Act"), is included in the quote for your renewal po{icy. You should know that, effective November 26, 2002, any losses caused by certified acts of terrorism, as defined in the Act, would be partially reimbursed by the United States under a formula established by federal law. Under this formula, the United States pays 90°!0 of covered terrorism lasses exceeding the statutori(y established deductible paid by the insurance company providing the coverage, The portion of your annual premium that is attributable to coverage for acts of terrorism, as defined in the Act, is shown on the Schedu{e below. Schedule Rate per $100 of State Remuneration MN 0.02 Aaencv Name and Address Rosenbloom Rosenbloom Inc 11 T 3rd Ave S Ste 400 Minneapolis, MN 55401-2519 BRAC3685 1240 288712 Community Money Centers, Inc. Locations Money Centers 1532 University Ave., Suite #100 St. Paul, MN 55104 Ramsey County Money Centers 6525 Nicollet Ave. S. Richfield, MN 55423 Hennepin County Money Centers 2600 Nicollet Ave. S. Minneapolis, NIN 55408 Hennepin County Money Centers 6219 Brooklyn Blvd. Brooklyn Center, NiN 55429 Hennepin County Money Centers 8132 Highway 7 St. Louis Park, MN 55426 Hennepin County Page 1 of 7 Minnesota Statutes 2004, Chapter 53A. Copyright 2004 by the Office of Revisor of Statutes, State of Minnesota. �A.01 53A.01 Definitions. Subdivision 1. Currency exchange. "Currency exchange" means any person, except a bank, trust company, savings bank, savings association, credit union, or industrial loan and thrift company, engaged in the business of cashing checks, drafts, money orders, or travelers' checks for a fee. "Currency exchange" does not include a person who provides these services incidental to the person's primary business if the charge for cashing a check or draft does not exceed $1 or one percent of the value of the check or draft, whichever is greater. Subd. 2. Commissioner. "Commissioner" means the commissioner of commerce. HIST: 1989 c 247 s l; 1995 c 202 art 1 s 25 ==53A.02 53A.02 License. Subdivision L Requirement. A person may not engage in the business of a currency exchange without first obtaininq a license from the commissioner. Not more than one place of business may be operated under the same license, but the commissioner may issue more than one license to the same ensee upon compliance by the applicant with all the isions of this chapter for each new license issued. Subd. 2. Distance limitation. No license may be issued or renewed under this chapter if the place of business to be operated under the license is located or proposed to be located within one-half mile of another licensed currency exchange. The distance limitation imposed by this subdivision is measured by a straight line from the closest points of the closest structures involved. Subd. 3. Prohibition. A licensee may not contract with another person or business entity to manage the currency exchange business. This subdivision does not prohibit the licensee from employing persons to operate a currency exchange facility. HIST: 1989 c 247 s 2; 1992 c 504 s 2 ==53A.03 53A.03 Application for license; fees. (a) An application for a license must be in writing, under oath, and in the form prescribed and furnished by the commissioner and must contain the following: (1) the full name and address (both of residence and place usiness) of the applicant, and if the applicant is a nership or association, of every member, and the name and business address if the applicant is a corporation; (2) the county and municipality, with street and number, if any, of all currency exchange locations operated by the http://www.revisor.leg.state.mn.us/cgi-bin/getstatchap.pl 10/8/2004 Page 2 of 7 applicant; and (3) the applicant's occupation or profession, for the ten years immediately preceding the application; present or previous nection with any other currency exchange in this or any other te; whether the applicant has ever been convicted of any crime; and the nature of the applicant's occupancy of the premises to be licensed; and if the applicant is a partnership or a corporation, the information specified in this paragraph must be supplied for each partner and each officer and director of the corporation. If the applicant is a partnership or a nonpublicly held corporation, the information specified in this paragraph must be required of each partner and each officer, director, and stockholders owning in excess of ten percent of the corporate stock of the corporation. (b) The application shall be accompanied by a nonrefundable fee of $1,000 for the review of the initial application. Upon approval by the commissioner, an additional license fee of $500 must be paid by the applicant as an annual license fee for the remainder of the calendar year. An annual license fee of $500 is due for each subsequent calendar year of operation upon submission of a license renewal application on or before September 1. Fees must be deposited in the state treasury and credited to the general fund. Upon payment of the required annual license fee, the commissioner shall issue a license for the year beginning January 1. (c) The commissioner shall require the applicant to submit to a background investigation conducted by the Bureau of Criminal Apprehension as a condition of licensure. As part of background investigation, the Bureau of Criminal rehension shall conduct criminal history checks of Minnesota records and is authorized to exchange fingerprints with the Federal Bureau of Investigation for the purpose of a criminal background check of the national files. The cost of the investigation must be paid by the applicant. (d) For purposes of this section, "applieant" includes an employee who exercises management or policy control over the company, a director, an officer, a limited or general partner, a manager, or a shareholder holding more than ten percent of the outstanding stock of the corporation. HIST: 1989 c 247 s 3; 1992 c 504 s 3; 1993 c 354 s l; 1999 c 223 art 2 s 2 ==53A.04 53A.04 Approval or denial of an application. (a) Within 30 days after the receipt of a complete application, the commissioner shall deny the application or submit the application to the governing body of the local unit of government in which the applicant is located or is proposing to be located. The commissioner may not approve the application without the concurrence of the governing body. The governing body shall give published notice of its intention to consider the issue and shall solicit testimony from interested persons, luding those in the community in which the applicant is ated or is proposing to be located. If the governing body has not approved or disapproved the issue within 60 days of receipt of the application, concurrence is presumed. The commissioner must approve or disapprove the application within 30 days from receiving the decision of the governing body. The http://www.revisor.leg.state.mn.us/cgi-bin/getstatchap.pl 10/8/2004 Page 3 of 7 governing body shall have the sole responsibility for its decision. The state shall have no responsibility for that decision. b) If the application is denied, the commissioner shall by mail notice of the denial and the reason for the denial to the applicant at the address contained in the application. If an application is denied, the applicant may, within 30 days of receiving the notice of a denial, request a contested case hearing pursuant to chapter 14; provided that if the denial is based upon the refusal of the governing body to concur the governing body must afford the applicant a hearing. The applicant shall have no right to the hearing provided for in this section if the denial is based upon the governing body's refusal to concur but shall have a hearing before the governing body. (c) This section applies to initial applications and renewal applications. (d) The state shall have no responsibility for the action of the governing body. HIST: 1989 c 247 s 4; 1992 c 504 s 4 ==53A.05 53A.05 Change of name, ownership, or location. Subdivision 1. Name or location. If a licensee proposes to change the name or location of any or all of its currency exchanges, the licensee shall file an application for oval of the change with the commissioner. The commissioner l not approve a change of location if the requirements of sections 53A.02, subdivision 2, and 53A.04 have not been satisfied. If the change is approved by the commissioner, the commissioner shall issue an amended license in the licensee's new name or location. A$100 fee must be paid for the amended license. Subd. 2. Ownership. The licensee shall notify the commissioner 30 business days in advance of any change in ownership of the currency exchange. The commissioner may revoke the currency exchange license if the new ownership would have resulted in a denial of the initial license under the provisions of chapter 53A. HIST: 1989 c 297 s 5; 1992 c 504 s 5; 1999 c 223 art 2 s 3 ==53A.06 53A.06 Fine, suspension, or revocation of license. (a) The commissioner may suspend or revoke any license under section 95."027 if the commissioner finds that: (1) the licensee has failed to pay the annual license fee or to maintain in effect the required bond or to comply with any order, decision, or finding of the commissioner under this chapter; the licensee, or any officer or director of a corporate li ensee, has violated any provision of this chapter or any rule or order of the commissioner under this chapter or chapter 45; (3) the licensee, or any officer or director of a corporate. http://www.revisor.leg.state.mn.us/cgi-bin/getstatchap.pl 10/8/2004 Page 4 of 7 licensee, has violated any other law which would indicate that the person is untrustworthy or not qualified to operate a currency exchange; or (4) any fact or condition exists which, if it had existed he time of the original or renewal application for the cense, would have warranted the commissioner refusing the issuance of the license. (b) A license may not be revoked until the licensee has had notice of a hearing pursuant to the provisions of chapter 14. (c) A licensee may surrender any license by delivery to the commissioner. The surrender does not affect the licensee's civil or criminal liability for acts committed before the surrender, or affect the liability on the bond required by sections 53A.01 to 53A.13, or entitle the licensee to a return of any part of any license fee. (d) Before suspension or revocation of the license, the commissioner may fine a licensee for violations of this chapter as authorized under chapter 45. HIST: 1989 c 247 s 6 ==53A.07 53A.07 Filing of fees; unreasonable fees. Subdivision 1. Approval of fees. Fees charged at each location for check cashing services must be filed with and approved by the commissioner. ubd. 2. Amendment of fees. A licensee may amend its s at any time by filing the proposed amendments with the commissioner. The application for amendment shall be in writing, under oath, and in the form prescribed by the commissioner. A fee of $50 shall accompany the application. The commissioner shall approve or deny the application 60 days after the filing of a complete application to amend its fees. Subd. 3. Standards; unreasonable fees prohibited. The commissioner may disapprove the fees filed by a currency exchange if they are not fair and reasonable. In determining whether a fee is fair and reasonable, the commissioner shall take into consideration: (1) rates charged in the past for cashing of checks by those persons and organizations providing check cashing services in the state of Minnesota; (2) the income, cost, and experience of the operations of currency exchanges existing prior to this enactment or in other states under similar conditions or regulations; (3) the amount of risk involved in the type of check to be cashed and the location where the currency exchange operates; (4) the general cost of doing business, insurance costs, s rity costs, banking fees, and other costs associated with t�perations of the particular currency exchange; (5) a reasonable profit for a currency exchange operation; and http://www.revisor.leg.state.mn.us/cgi-bin/getstatchap.pl 10/8/2004 Page 5 of 7 (6) any other matter the commissioner deems appropriate. The commissioner shall set a separate rate, consistent with the above standards, for checks issued by a government entity in an �unt up to $500 to be cashed by a currency exchange. HIST: 1989 c 247 s 7 ==53A.08 53A.08 Bond. Before a license may be issued to a currency exchange, the applicant shall file annually with and have approved by the commissioner a surety bond, issued by a bonding company authorized to do business in this state in the principal amount of $10,000. The bond must run to the commissioner and is for the benefit of creditors of the currency exchange for liability incurred by the currency exchange on money orders issued or sold by the currency exchange, for liability incurred by the currency exchange for sums due to a payee or endorsee of a check, draft, or money order left with the currency exchange for collection, and for liability incurred by the currency exchange in connection with providing currency exchange services. The commissioner may require a licensee to file a bond in an additional amount if the commissioner considers it necessary to meet the requirements of this section. In determining the additional amount of the bond which may be required, the commissioner may require the licensee to file its financial records, including�all bank statements, pertaining to the sale of money orders for the preceding 12-month period. In no case may the bond be less than the initial $10,000 or more than the �standing liabilities. HIST: 1989 c 247 s 8; 1992 c 504 s 6 ==53A.081 53A.081 Annual report and investigations. Subdivision l. Annual report. On or before April 30, a licensee shall file an annual report with the commissioner for the previous calendar year. The report must contain information that the commissioner may reasonably require concerning, and for the purpose of examining, the business and operations af each licensed currency exchange. Subd. 2. Investigation. The commissioner may at any time investigate the currency exchange business of any licensee and of every person, partnership, association, and corporation engaged in the business of operating a currency exchange in the manner provided under section 45.027. Subd. 3. Fees and expenses. The licensee shall pay the costs of an examination or investigation in the manner provided under section 60A.03, subdivision 5. Subd. 4. Classification of data. Financial information on individuals and businesses that is submitted to the commissioner in the annual report under subdivision 1 are �vate data on individuals`or nonpublic data. HIST: 1992 c 504 s 7; 1996 c 439 art 1 s 6; 1Sp1997 c 3 s 19; 2001 c 208 s 2 ==53A.09 http://www.revisor.leg.state.mn.us/cgi-binigetstatchap.pl 10/8/2004 Page 6 of 7 53A.09 Powers; limitations; prohibitions. Subdivision l. Deposits; escrow accounts. A currency exchange may not accept money or currency for deposit, or act as lee or agent for persons, firms, partnerships, associations, corporations to hold money or currency in escrow for others for any purpose. However, a currency exchange may act as agent for the issuer of money orders or travelers' checks. Subd. 2. Gambling establishments. A currency exchange located on the premises of a gambling establishment as defined in section 256.9831, subdivision 1, may not cash a warrant that bears a restrictive endorsement under section 256.9831, subdivision 3. HIST: 1989 c 247 s 9; 1996 c 465 art 3 s 1 ==53A.10 53A.10 Violations. Any person, firm, association, partnership, or corporation that violates this chapter shall be guilty of a misdemeanor. HIST: 1989 c 247 s 10 ==53A.11 53A.11 Books of account; annual report. The licensee shall keep and use in the licensee's business the books, accounts, and records that will enable the commissioner to determine whether the licensee is complying with s chapter and with the rules adopted by the commissioner. A ensee shall preserve the books, accounts, and records for at least two years after making the final entry. HIST: 1989 c 247 s 11 ==53A.12 53A.12 Rules. The commissioner may adopt rules under chapter 14 as may be necessary to administer and enforce this chapter. HIST: 1989 c 247 s 12 ==53A.13 53A.13 Fee notice; false advertising; penalty. Subdivision 1. Fee notice. The fees charged by currency exchanges for rendering any service authorized by sections 53A.01 to 53A.13 must be prominently displayed on the premises of the currency exchange in the fashion required by the commissioner Subd. 2. False advertising. A licensee may not advertise, print, display, publish, distribute, or broadcast any statement or representation that is false, misleading, or deceptive, or that omits material information. Subd. 3. Civil liability; penalty. A person who "-'violates any subdivision of this chapter is liable to the person damaged by the violation for actual damages. The court may award reasonable attorney fees and costs. http:/lwww.revisox.leg.state.mn.us/cgi-bin/getstatchap.pl 10/8/20Q4 http://www.revisorleg. state.rrul.us/cgi-bin/getstatchap.pl 10/8/2004 Page 7 of 7 HIST: 1989 c 247 s 13 53A. 14 53A. 14 Repealed, 1992 c 504 s 8 �A.misc2004 Minn. Stats. repealed, etc. secs in chap, 53A 53A. 14 Repealed, 1992 c 504 s 8 • s http://www.revisor.leg.state.mn.us/cgi-bin/getstatchap.pl 10/8/2004 Office of the City Clerk City of Brooklyn Center A Millennium Community Sharon Knutson City Clerk October 11, 2004 Mr. Cary Geller Money Centers 6525 Nicollet Avenue Richfield, MN 55423 RE: Community Money Centers Inc. dba Money Centers—6219 Brooklyn Boulevard,Brooklyn Center Currency Exchange License Renewal for 2005 i Dear Mr. Geller: The Minnesota Department of Commerce has forwarded to the City your renewal application to operate a currency exchange business at 6219 Brooklyn Boulevard, Brooklyn Center, Minnesota. • Minnesota Statute 53A.04(a) requires the commissioner to submit the application to the governing body of the local unit of government in which the applicant is located or is proposing to be located. The governing body shall give published notice of its intention to consider the issue and shall solicit testimony from interested persons, including those in the community in which the applicant is located or is proposing to be located. A notice of public hearing will be published in the City's official newspaper, Brooklyn Center Sun-Post, on Thursday, October 21, 2004. The Public Hearing is scheduled for Monday; November 8, 2004, at 7 p.m. or as soon thereafter as the matter may be heard in the City Hall Council Chambers, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota. You are not required to attend the public hearing, however, you may wish to do so to answer any questions that may arise from citizens or Council Members. Should you have any questions regarding the public hearing process,please call me at (763) 569-3306. Sincerely, Sharon Knutson, CMC City Clerk 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 <>i ne�spapers AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA) ss. COUNTY OF HENNEPIN) Richard Hendrickson, being duly sworn on an oath states or affirms, that he is the Chief Fi- nancial Officer of the newspaper known as Sun-Post and has full knowledge of the facts stated below: (A) The newspaper has complied with all of the requirements constituting qualification as a qualified newspaper, as provided by Minn. 5tat. §331 A.02, §331 A.07, and other applio- able laws as amended. (B) The printed public notice that is attached was published in the newspaper once each week, for one successive week(s); it was first published on Thursday, the 21 day of October 2004, and was thereafter printed and published on every Thursday to and including Thursday, the day of 2004; and printed below is a copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowl- edged as being the size and kind of type used in the composition and publication of the nofice: 8bcaefgt,�;klmnopqrscu.�wxyz BY: CFO Subscribed and swom to or affirmed before me on this 21st day of October 2004. /��C�-�-� f�� Notary Pub�� r.,.,.� MARY ANN CARLSON NOTARY PUBLIC MINNESOTA I MY COMMISSION EXPIRES 1�1-08 x L'�tq of BroQ,kl� Ceater� J r�� F f��. RATE INFORMATION 2 1b �6. _s3�Y� s. t {af �r ,SF>'f Ii3- 7.�:�, 1�IOTIGE OF �VTFNT TOCONSIDEit A 6 c (1) Lowest ciassified rate paid by commercial users 2.85 ner line F f�U�,�� for comparable space xo� rs ��rebp� tue c��,t �i� c�c �f Brooklyn Ceatei`wi11 consides the renewalapplicatiou for;: a curreney e8ckange licenge from Communi Mone Maximum rate alfowed by faw 6.20 oer line ��d�M��y��,� Botilevard,.8raoldyn�ente�.ASimi�ota. This cousia�rg tion will ]5�`8�� at th� Navember 8, 2004, City Countal-.= I (3) Rafe actually`charged 1.30 �er line ��ac�P:m be he�d. .The meetiug� vaillbe hetd in the council chaw bers o£fi,he Broo7tTYII CenterCit�+$a11, 6301 Sh�ngle Greek f Pffikwag Bi'�kl}� Cenker:l� py fi� 3 F�3t E3S �+a k— _-i O11aL VII �IIulii0lk�` ro �^�`.asr E=r"�, ta.� i �iCL� �r.�`: Ta t a `s_.� r.<�< s�w{�� _.�ESC�iB[�:;` ^r� '•.�g City Council Agenda Item Na. 9a 85 E: SEVENT'H PLAGE, SCtITE t00 SAWT PAUL, MN 55101-2887 651.223.3000 FAX:651.2Z3,3002 E-MAIL; adrisors@springsted.com SPRINGSTED Advisors to the,P+iblic Sector 51,010,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2004C (BOOK ENTRY ONLYj AWARD: UMB BANK, N.A. SALE: November 2004 Moody's Rating; A1 Interest Net Interest T�ue Interest Bidder Rates Price Cost Rate UMB BANK, N.A. 2.10% 2006 $9,001,617.U0 $t87,048.83 3.415696 2.35% 2007 2.55°,6 2�8 2.75% 2009 3.00% 2010 3.30°!0 2011 3.45% 2012-2013 3.65% 2014-2015 PIPER JAFFRAY CO. 3.00% 2006-2008 $1,00$,736.30 $18$,762.66 3.437$°l0 3.25%0 2009-2010 3.375% 2011-2012 3.50% 2013 3.625°k 2014 3.75% 2Q15 WEILS FARGO BROKERAGE 2.00% 2006 $999,900.00 $193,218.33 3.5344°!0 SERVICES, LLC 2.10% 2007 2.70% 2008-2009 3.25°l0 2010-2011 3.60% 2012-2013 3.75% 2014-2015 (Continued) CORPORATE OFF/CE.• SAtNT PAUL, MN Vlsit �lr website St wWW.SpnngS�d.COm IOWA KANSAS MINNESOTA diRO1NU WASH[NG'FON, DG WtSCQNSIN L--__—_—_ T REOFFERING SCHEDULE OF THE PURCHAS€R Rate Year Yield 2.10% 2006 Par 2.35°� 2007 Par 2.55% 2008 Par 2.75% 2009 Par 3.0096 2010 Par 3.30°l0 2011 Par 3.45% 209 2 3.50°� 3.45% 2013 3.50%0 3.65°Io 2014 3.70°l0 3.65% 2015 3.7Q°k BBI: 4.45% Average Maturityc 5.424 Years 85 E. SEVEN`fH FLAGE, SCIIT€ 100 SAPNT PALIL, MN 55101-288'I 651.223.3000 FAX:651.223.3002 E-MAIL: advisors@springsted.com SPRINGSTED Advisors to the Public Sector a�7 CITY OF BROOKLYN CENTER, MINNESOTA TAXABLE GENERAL OBUGATION TAX INCREMENT BONDS, SERIES 2004D (BOOK ENTRY ONLIf) AWARD: MORGAN KEECAN CO., INC. SALE: November 8, 2004 Moody'sRating: A1 Interest Net Interest True interest Bidder Rates Price Cost Rate MORGAN KEEGAN CO.,1NG 4.75% 2005-2016 $17,154,429.64 $8,217,343.28 4.9912°fo 5.00% 2017-2018 5.125% 2019-2020 GRIFFIN, KUBIK, STEPHENS 4.20% 2005-2010 $17,063,661.85 $8,2t2,766.90 4.9998% THOMPSON, INC. 4.30%0 2011 4.50% 2012 4.625°�6 2013 4.75% 2014 5.00% 2015-2020 LEGG MASON WOOD WALKER, INC. 3.00% 2005-2006 $17,106,709.75 $$,311,234.83 5A378% 3.30°k 2007 3.60% 2008 3.85°fo 2009 4.10% 2010 4.35% 2011 4.50°!0 2012 4.85°!0 2013-2016 5.00°k 2017 5.125% 2018 5.25% 2019 5.40% 2020 (Continued} CORPORATEOFFICE: SAINT PAUL, MN Visit our website at WWw.3pRngSted.CO(il IOWR KANSAS MINNESOTA VIRGINIA WASHINGTON, DC WISCONSIN Interest Net Interest True Interest I Bidder Rates Price Cost Rate PIPER JAFFRAY CO. 4.00% 2005-2009 $17,101,110.79 $8,404,178.38 5.0976°k 4.25% '2010 4.30°� 2011 4.50% 2012 4.60% 2013 4.75°Io 2014 5.00% 2�15-2016 5.10°l0 201? 5.20%0 2018 5.30% 2019 5.40% 2020 NORTHLAND SECURITfES 2.45% 2005 $17,089,795.00 $8,401,114.58 5.09859�0 ROBERT W. BAIRD COMPANY, 2.85% 2006 INCORPORATED 320% 2007 BERNARDI SECURITIES, 3.70°k 2008 INCORPORATED 4.00% 2009 4.25% 2010 4.45% 2011 4.60°k 2012 4.75% 2013 4.90% 2014 5.00°!0 2015 5.05% 2016 5.10% 2017 5.25% 2018-2020 RBC DAIN RAUSCHER INC. 4.00°!0 2005-2009 $17,083,990.25 $8,422,955.47 5.1175°/u ABN-AMRO FINANCIAL SERVICES 4.25°l0 2010 4.45% 2011 4.60°� 2012 4.75% 2013 4.90% 2014 5.00%0 2045 5.125% 2016-2018 5.25% 2019-2020 RAYMOND JAMES ASSOCIATES 2.50% 2005 $17,087,865.39 $8,445,96128 5.1265°!0 3.35% 2006 3.54% 2007 3.75% 2008 4.00°k 2009 4.25°k 2010 4.509'0 2011 4.64°l0 2012 4.7$% 2013 5.00% 2014-2016 5.125% 2017 520% 2018 5.25% 2019 5.375% 2020 (Continued} Interest Net Interest True Interest Bidder Rates Price Cost Rate CITIGROUP GLOBAL MARKETS, INC. 2.30°k 2005 $17,110,869.49 $8,472,939.47 5.1299%0 UBS FINANCIAL SERVICES 1NC. 2.85°!0 2006 CRONIN COMPANY, INCORPORATED 3.25% 2007 CITIZENS BANK 3.625°r6 2008 CHARLES SCHWAB COMPANY 4.00% 2009-2010 425% 2011 4.50% 2012 4.65% 2013 4.85% 2014 5.00% 2015 5.05% 2016 5.20% 2017 5.30°k 2018 5.40% 2019 5.50% 2020 REOFFERING SCHEDULE OF THE PURCHASER Rate Year Yield 4.75% 2005 2.31 4J5% 2006 2.97°10 4.75% 2007 3.32% 4.75% 2008 3.63% 4.75% 2009 3.91 4.75% 2010 4.9 3°k 4.75% 2011 4.79% 4.75% 2012 4.79°k 4.75% 2013 4.79°Jo 4.75% 2014 4.79%0 4.75%0 2015 4.79% 4.75% 2016 4.79% 5.00% 2017 5.14°!0 5.00% 2018 5.20% 5.125% 2019 5.27% 5.125%0 2020 5.30°k BBI: 4.45% Average Maturity: 9.563 Years Member introduced the following resolution and moved its adoption: RESOLUTION,NO. RESOLUTION ACCEPTING OFFER ON THE SALE OF $1,010;000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2004C AND PROVIDING FOR THEIR ISSUANCE A. WHEREAS, the City Council of the City of Brooklyn Center, Minnesota (the "City"), has heretofore determined and declared that it is necessary and expedient to issue $1,010,000 General Obligation Improvement Bonds, Series 2004C of the City, pursuant to Minnesota Statutes, Chapters 429 and 475, to finance the construction of various improvement projects in the City (the "Improvements"); and B. WHEREAS, the construction of each of the improvement projects to be financed by the Bonds have heretofore been ordered; and C. WHEREAS, the City has retained Springsied 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 D. WHEREAS, it is in the best interests of the City that the Bonds be issued in book-entry form as hereinafter provided; and E. WHEREAS, the following offers were received, opened and recorded at the offices of Springsted Incorporated at 11:00 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: RESOLUTION NO. 1. Accentance of Offer. The offer of (the "Purchaser"), to purchase $1,010,000 General Obligation Improvement Bonds, Series 2004C of the City (the "Bonds", ar individually a"Bond"), in accordance with the terms of proposal, 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 the 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 deposits. 2. Terms of Bonds. (a) Title; Original Issue Date; Denominations: Maturities; Term Bond Option. The Bonds shall be titled "General Obligation Improvement Bonds, Series 2004C", shall be dated December 1, 2004, 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 Year Amount 2006 $120,00 2011 $100,00 0 0 2007 110,000 2012 95,000 2008 105,000 2013 95,000 2009 105,000 2014 90,000 2010 100,000 2015 90,000 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 Entrv Onlv Svstem. The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York ar any of its successors or successors to its functions hereunder (the "Depositary") 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 paragraph 11 (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 U.S. Bank National Association (the "Registrar") in the name of RESOLUTION NO. 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 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 (the "Participant") or the person for which a Participant holds an interest in the Bonds shoum on the books and records of the Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence, neither the City, nor the 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 Depository assigns 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 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 respeet 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 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 $onds to the extent of the sum or sums so paid. (v) Upon delivery by the Depository to the Registrar of written notice to the effeet that the Depository has determined ta 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 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 i RESOLUTION NO. 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 pursnant to this Resolution by the City or 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 Registrar may establish a special record date for such consent or other action. The City or the 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 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 optional 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-Entrv Onlv 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 is willing to undertake the functions of the Depository hereunder 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 ar 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 as being registered in the bond register in the name ofthe Nominee, but may be registered in whatever name or names the Holder of the Bonds RESOLUTION NO. 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). 3. Purpose. The Bonds shall provide funds to finance the construction of various improvement prajects in the City (the "Improvements"). The total cost of the Improvements, 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. Work on the Improvements shall proceed with due diligence to completion. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Improvements proceeds with due diligence to completion and that any and all permits and studies required under law for the Improvements are obtained. 4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year (each, an"Interest Payment Date"), commencing August 1, 2005, 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 Maturity Interest Year Rate Year Rate 2006 2011 2007 2012 2008 2013 2009 2014 2410 2015 5. Optional Redemntion. All Bonds maturing in the years 2013 through 2015, shall be subject to redemption and prepayment at the option of the City on February 1, 2012, 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 by lot 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 by lot, using such method of selection as it shall deem proper in RESOLUTION NO. 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 the Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and the Bond Registrar duly executed by the holder thereof or his attorney duly authorized in writing) and the City shall execute 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 Re�istrar. 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 successar 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 substantially the following form: RESOLUTION NO. UNITED STATES OF AMERICA STATE OF MINNESOTA HENNEPIN COUNTY CITY OF BROOKLYN CENTER R- GENER.AL OBLIGATION IMPROVEMENT BOND, SERIES 2004C INTEREST MATURITY DATE OF RATE DATE ORIGINAL ISSUE CUSIP December 1, 2004 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, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing August 1, 2005, 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 ariginal 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 Tssuer 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 RESOLUTION NO. 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. Redemvtion. Al1 Bonds of this issue (the "Bonds") maturing in the years 2013 through 2015, are subject to redemption and prepayment at the option of the Issuer on February l, 2012, 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 by lot 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 Redemntion: Partial Redembtion. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common rnaturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, 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 ar 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 $1,010,000, all of like date of original issue and tenor, except as to number, maturity, interest rate and denomination, which Bond has been issued pursuant to and in full conformity with the Constitution, Charter of the Issuer, laws of the State of Minnesota and pursuant to a resolution adopted by the City Council of the Issuer on November 8, 2004 (the "Resolution"), for the purpose of providing money to finance the constructian of various improvement projects. This Bond is payable out of the General Obligation Improvement Bonds, Series 2004C Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full 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 axe hereby irrevocably pledged. RESOLUTION NO. Denominations; Exchan�e: Resolution. The Bonds are issuable solely as fiilly 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 Re�istered 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. Oualified Tax-Exemnt Oblieation. This Bond has been designated by the Issuer as a"qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. RESOLUTION NO. 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, daes not exceed any constitutional, statutory or charter limi�ation of indebtedness. 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 Mayar and its City Manager, the corporate seal of the Issuer 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 Association Saint Paul, Minnesota BOND REGISTRAR'S CITY OF BROOKLYN CENTER, CERTIFICATE OF HENNEPIN COLTNTY, AUTHENTICATION MINNESOTA This Bond is one of the Bonds described in the Resolution mentioned /s/ Facsimile within. Mayor U.S. Bank National Association, /s/ Facsimile Saint Paul, Minnesota Manager Bond Registrar By: Authorized Signature RESOLUTI N N O O. ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Band, 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. S RESOLUTION NO. 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 fi�ll 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 Guarantar 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.) RESOLUTION NO. 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: Authorized Signature Date Amount of Holder RESOLUTION NO. 8. Execution: Temnorarv 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 Nlayor 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 ofFcer, 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 ar 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 �vhich 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 December l, 2004. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Re�istration: 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 RESOLUTION NO. Registrar. Whenever any Bonds are so surrendered for exchange, the City sha11 execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds wluch the Holder makmg 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 Finance Director is hereby authorized to negotiate and execute the terms of said agreement. 11. Ri�hts Unon Transfer or Exchan�e. 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 Pavment: 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 af 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 priar to the Special Record Date. 13. Treatment of Re�istered 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. RESOLUTION NO. I 14. Deliverv: Apnlication of Proceeds. The Bonds when so prepared and executed shall be delivered by the Administrator 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 "General Obligation Improvement Bonds, Series 2004C 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 a11 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 "Construction Account" and "Debt Service Account", respectively. (i) Construction Account. To the Construction 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 $998,890, plus any special assessments levied with respect to the Improvements and collected prior to completion of the Improvements and payment of the costs thereof. From the Construction Account there shall be paid all costs and expenses of making the Improvements listed in paragraph 16 (with respect to assessments), including the cost of any construction contracts heretofore Iet and all other costs incurred and ta 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 anticipated date of commencement of the collection of special assessments herein Ievied or covenanted to be levied; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Construction Account, the balance (other than any special assessments) may be transferred by the Council to the fund of any other improvement instituted pursuant to Minnesota Statutes, Chapter 429, and provided further that any special assessments credited to the Construction Account shall only be applied towards payment of the costs of the Improvements upon adoption of a resolution by the City Council determining that the application of the special assessments for such purpose will not cause the City to no longer be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. (ii) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (a) all collections of special assessments herein covenanted to be levied with respect to the Improvements and either initially credited to the Construction Account and not already spent as permitted above and required to pay any principal and interest due on the Bonds or collected subsequent to the completion of the Improvements and payment of the costs thereof; (b) all accrued interest received upon delivery of the Bonds; (c) all funds paid for the Bonds in excess of $998,890; (d) all collections of taxes hereafter levied for the payment of the Bonds and interest thereon in the event the sums herein j pledged for the payment of the Bonds are insufficient therefor; (e) all funds remaining in the Construction Account after completion of the Improvements and payment of the costs thereof, not so transferred to the account of another improvement; all investment earnings on funds held in the Debt Service Account; and (g) any and all other moneys which are properly available I 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 far I RESOLUTION NO. 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. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed far the purpose for which the Bonds were issued and (2) in addition to the above in an amount not greater than the lesser of five percent (5%) of the proceeds of the Bonds or $100,000. To this effect any special assessments against benefitted properties are also pledged to the Debt Service Account, in excess of amounts which under then-applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. Money in the Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that sueh investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 16. Assessments. It is hereby determined that no less than one hundred percent (100%) of the cost to the City of each Improvement financed hereunder within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be heretofore levied against every assessable lot, piece and parcel of land benefitted by any of the Improvements. The City hereby covenants and agrees that it will let all construction contracts not heretofore let within one (1) year after ordering each Improvement financed hereunder unless the resolution ordering the Irnprovement specifies a different time limit for the letting of construction contracts. The City hereby covenants and agrees that it has done and performed all acts and things necessary for the final and valid levy of such special assessments, and in the event that any such assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any error, defect, or irregularity in any action or proceedings taken or to be taken by the City or the City Council or any of the City officers or employees, either in the making of the assessments ar in the performance of any condition precedent thereto, the City and the City Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessments a valid and binding lien upon such property. It is hereby determined that the assessments which remain payable are payable in equal, consecutive installments of principal, with interest on the declining balance, at a rate per annum not greater than the maa�imum permitted by law and not less than 6.50% per annum: RESOLUTION NO. Improvement Levy Collection DesiQnation Amount Years Years Northport Street $519,110 2004-2013 2005-2014 Happy Hollow Street 288,746 2004-2013 2005-2014 Northport Storm Drainage 165,020 2004-2013 2005-2014 Happy Hollow Storm Sewer 111,234 2004-2013 2005-2014 73 Avenue Street 55,222 2004-2013 2005-2014 73` Avenue Storm Sewer 17,540 2004-2013 2005-2014 17. Covera�e Test. The assessments are such that if collected in full they, together with all other funds herein pledged for the payment of the Bonds, will 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 Obligation Pled�e. 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 Re�istration. The Clerk is hereby directed to file a certified copy of this resolution with the County Auditor of Hennepin County, Minnesota, together with such other information as they shall require, and to obtain the County Auditor's Certificate that the Bonds have been entered in the County Auditor's Bond Register. 20. Records and Bonds. 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. 21. 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 an 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 RESOLUTION NO. de ositin with the Bond Re istrar p g g 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 andlor 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. 22. Ne�ative Covenant as to Use of Proceeds and Imnrovements. The City hereby covenants not to use the proceeds of the Bonds or to use the Improvements, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 23. Tax-Exemnt Status of the Bonds; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (1) requirements relating to temporary periods for investments, (2) limitations on amounts invested at a yield greater than the yield on the Bonds, and (3) the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued and outstanding at one time in this calendar year) exceed the small-issuer exception amount of $5,000,000. For purposes of qualifying for the exception to the federal arbitrage rebate requirements for governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and declares that (1) the Bonds are issued by a governmental unit with general taxing powers, (2) no Bond is a private activity bond, (3) ninety-five percent (95%) or more of the net proceeds of the Bonds are to be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City), and (4) the aggregate face amount of all t�-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities thereof, and all entities treated as one issuer with the City) during the calendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(�(4)(D) of the Code. 24. Compliance with Reimbursement Bond Reeulations. The provisions of this paragraph are intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the Closing Date (a "Reimbursement Expenditure"). The City hereby certifies and/or covenants as follows: (a) Not later than 60 days after the date of payment of a Reimbursement Expenditure, the City (or person designated to do so on behalf of the City) has made or will have RESOLUTION NO. made a written declaration of the City's official intent (a "Declaration") which effectively (i) states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional description of the property, project or program to which the Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the general functional purpose thereof from which the Reimbursement Expenditure was to be paid (collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be issued by the City for the purpose of financing the Project; provided, however, that no such Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for the Project, defined in the Reimbursement Regulations to include engineering or architectural, surveying and soil testing expenses and similar prefatory costs, which in the aggregate do not exceed 20% of the "issue price" of the Bonds, and (ii) a de minimis amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or 5% of the proceeds of the Bonds. (b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Bonds or any of the other types of expenditures described in Section 1.150- 2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Bonds and in all events within the period ending on the date which is the later of three years after payment of the Reimbursement Expenditure or one year after the date on which the Project to which the Reimbursement Expenditure relates is first placed in service. (d) Each such reimbursement allocation will be made in a writing that evidences the City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days after the Bonds are issued, shall be treated as made on the day the Bonds are issued. Provided, however, that the City may take action contrary to any of the faregoing covenants in this paragraph 24 upon receipt of an opinion of its Bond Counsel for the Bonds stating in efFect that such action will not impair the tax-exempt status of the Bonds. 25. Desi�nation of Oualified Tax-Exembt Obli�ations; Issuance Limit. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; RESOLUTION NO. (d) the reasonably anticipated amount of t�-exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 2004 will not exceed $10,000,000; and (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2004 have been designated for purposes of Section 265(b)(3) of the Code. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 26. Continuin� 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 ar 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 's obligations under the covenants. (b) The Mayor and Manager of the City, or any other officer of the authorized to act in their place, (the "Officers") are hereby authorized and directed to execute on behalf of the 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. RESOLUTION NO. 27. 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. 28. Headin�s. 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 hereo£ November 8, 2004 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly secorided 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. e RESOLUTION NO. STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF BROOKLYN CENTER I, the undersigned, being the duly qualified and acting Clerk of the City of Brooklyn Center, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to authorizing the issuance of $1,010,000 General Obligation Improvement Bonds, Series 2004C of said City. WITNESS my hand this day of 2004 Clerk 0 Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ACCEPTING OFFER ON SALE OF $17,245,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2004D, PLEDGING TAX INCREMENTS FOR THE SECURITY THEREOF AND AUTHORIZING A PLEDGE AGREEMENT 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 t� base; and B. WHEREAS, the Authority has heretofore created Taa� Increment Financing District No. 3(the "T� Increment District") within the Redevelopment Project Area and adopted a tax increment financing plan therefar (as modified, the "TIF Plan") pursuant to the provisions of Minnesota Statutes, Section 469.174 to 469.1799; and C. WHEREAS, pursuant to the provisians of the Redevelopment Plan and TIF Plan, funds are to be expended within the Redevelopment Project Area to provide money to finance certain public redevelopment costs (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 $17,245,000 T�able General Obligation Tax Increment Bonds, Series 2004D 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 11:00 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. Accentance of Offer. The offer of (the "Purchaser"), to purchase $17,245,000 T�able General Obligation Tax Increment Bonds, Series 2004D 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; Ori�inal Issue Date; Denominations: Maturities: Term Bond Ontion. The Bonds shall be titled "Taxable General Obligation T� Increment Bonds, Series 2004D", shall be dated December 1, 2004, 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 2005 410,000 2006 590,000 2007 625,000 2008 625,000 2009 685,000 2010 715,000 2011 750,000 2012 800,000 2013 1,240,000 2014 1,305,000 2015 1,380,000 2016 1,450,000 2017 1,540,000 2018 1,610,000 2019 1,720,000 2020 1,800,000 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 faregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). (b) Book Entrv 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 regponsibility or obligation to any broker, dealer, bank, or any other financial institution for which the Depository holds Bonds as securities depository (the "Participant") or the person for which a Participant holds an interest in the Bonds shown on the books and records of the Participant (the "Beneficial Owner"). Without lirniting 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"). Far 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 Depository assigns 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 awner 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 a11 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 benefieial 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 successar 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-Entrv Onlv 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 responsibilrties vv�th 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 Renresentations. 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's Tax Increment Financing District No. 3(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 "Ta�c 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 Fledged 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, 2005, 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 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5. Redemntion. All Bonds maturing in the years 2017 through 2020 sha11 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 sha11 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 sha11 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 serviee 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 I principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 6. Bond Re�istrar. U.S. Bark National Association in Saint Paul, Minnesota, is appointed to act as band 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 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 2004D INTEREST MATURITY DATE OF RATE DATE ORIGINAL ISSUE CUSIP December 1, 2004 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 date specified above, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2005, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) un�il 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. Redembtion. All Bonds of this issue (the "Bonds") maturing in the yeaxs 2017 through 2020 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 Redemntion: 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 satisfaetory 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; Puiroose; General Obli�ation. This Bond is one of an issue in the total principal amount of $17,245,000, 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 November 8, 2004 (the "Resolution"), for the purpose of providing money to finance certain public redevelopment costs set forth in the Brooklyn Center Economic Development Autharity's Tax Increment Financing Plan for Ta�c Increment Financing District No. 3. This Bond is payable out of the Taxable General Obligation Tax Increment Bonds, Series 2004D Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and t�ing powers of the Issuer have been and are hereby irrevocably pledged. Denominations: Exchan�e: 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 unon 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 Re�istered 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 Registrax. IT IS HEREBY CERTIFIED AND RECITED that a11 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. 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 SA1NT 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 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. AS SIGNMENT 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 tl�e 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: Temnorarv 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, sha11 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 December 1, 2004. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10: Re�istration; Transfer; Exchan�e. 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 ar 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 ta the Bond Registrar, duly executed by tl�e 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 authorized to negotiate and execute the terms of said agreement. 11. Ri�hts Unon Transfer or Exchan�e. 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 Pavment: 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 €or 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; Anblication 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 sha11 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 2004D 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", respeetively. (i) Canital 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 $17,055,305. 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 necessar to a interest on the Bonds due rior to the Y PY P receipt of T� 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 $17,055,305; (c) Pledged T� Increments received fzom 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 payrnent 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; fl 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 aid or dischar ed. The Cit hereb ex ressl reserves the ri ht to p g Y Y Y P g use the T� 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 Proj ect 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 Obligation Pledee. 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 t�ing 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 Re�istration. The Clerk is hereby directed to file a certified copy of this resolution 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. 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 Registrax on or before that date a sum sufficient far 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 befare that date a sum su�cient 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 Mayar and Manager of the City, or any other officer of the City authorized to act in their place, (the "Officers") are hereby autharized and directed to execute on behalf of the City the Undertaking in substantially the forrn 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 Pled�e A�reement. The Mayor and City Manager are hereby authorized to execute the Ta� 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, the City reserves the right to terminate, reduce or apply to other lawful purposes the Pledged T� Increments to the payment of the Bonds and interest thereon to the extent and in the manner permitted by law. 25. 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. 26. Headin�s. Headings in this resolution are included far convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. November 8. 2004 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 thereo£ and the following voted against the same: whereupon said resolution was declared duly passed and adopted. STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF BROOKLYN CENTER I, the undersigned, being the duly qualified and acting Clerk of the City of Brooklyn Center, Minnesota, D0 HEREBY CERTIFY that I have compared the attached and foregoing extract of rninutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to opening and considering bids for, and awarding the sale of, $17,245,000 Taxable General Obligation Tax Increment Bonds, Series 2004D of said City. WITNESS my hand this day of 2004. Clerk e TAX INCREMENT PLEDGE AGREEMENT THIS AGREEMENT, entered into as of the lst day of December, 2004, by and between the City of Brooklyn Center, a Minnesota municipal corporation, herein called the "Cit and the Brookl Center y, yn Economic Development Authority, a pubhc body corporate and politic created and existing under the provisions of Minnesota Statutes, Sections 469.090 to 469.1082, herein called the "Authority", witnesseth that: A. WHEREAS, the Authority has heretofore established its T� Increment Financing District No. 3(the "Tax Increment Financing District") within its Housing Development and Redevelopment Project No. 1; and B. WHEREAS, the City Council of the City of Brooklyn Center has adopted a resolution (the "Bond Resolution") awarding the sale of the City's T�able General Obligation T� Increment Bonds, Series 2004D (the "Bonds") to provide funds to finance the acquisition, demolition, clearance and site preparation in target redevelopment areas within the Authority's Tax Increment Financing District (the "Project"); and C. WHEREAS, the Project benefited the Authority and were made by the City at the request of the Authority; and D. WHEREAS, it is necessary and desirable that the City and the Authority enter into a tax increment pledge agreement pursuant to which a portion of the T� Increments will be pledged to the Bonds. NOW, THEREFORE, the City and the Authority, each in consideration of the mutual covenants and agreements herein contained, covenant and agree as follows: 1. Pled�e of Tax Increments: Coverage Test. The Authority pledges to the payment of the Bonds, Tax Increments in an amount equal to 105% of the debt service on the Bonds. 2. Remittance: Se�reeation: Reservation of Ri�hts. All pledged tax increments shall be remitted directly to the City and the City, acting as agent of the Authority, shall segregate all tax increments so received in a special account on its o�cial books and records. The Autharity reserves the right to alter the pledge of tax increments as set forth in the Resolution. 3. Filin�; Comnutation and Collection. An executec� copy of this Agreement shall be filed with the County Auditor of Hennepin County and shall constitute the request and authori2ation of the Authority and the City to the County Auditor and Treasurer to compute and collect the Tax Increments in accordance with the provisions of this Agreement and Minnesota Statutes, Section 469.177 and to remit the same to the Authority. IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be duly executed on their behalf, and such signatures and seal to be attested, as of the day and year first above written. CITY OF BROOKLYN CENTER, MINNESOTA By Mayor By Manager I I BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By Chair By Secretary i • EXHIBIT A Bond Resolution • OFFICIAL STATEMENT DATED NOVEMBER 1, 2004 NEW ISSUES Ratings: Requested from Moody's Investors Service !n fhe opinion of Briggs and Morgan, Professiona! Association, Bond Counsel, based on present federe/ and Minnesota laws, regulations, rulings and decisions, at the 6me of their issuance and delivery to the original purchaser(s), interest on fhe Series 2004C Bonds is excluded fiom gross income for purposes of United Sfates income tax and is excluded, to the same exterrt in computing both gross and taxa6le net income for purposes of State of Minnesota income tax (other than Minnesrota franchise taxes measured by incorrre and imposed on corpo2tions and financial institutions). Interest on the Series 2004C Bonds is not an ifem of tax preference for purposes of the altemative minimum tax �mposed on individuals and corporaGons; however, interest on the Series 2004C Bonds is taken into account for the purpose of detemuning adjusted currenf eamirn�s for purposes of compu6ng fhe federel aHemative minimum fax imposed on corpora6ons. No opinion wil/ be expressed by Bond CounsN regarding othe� state or federa! tax consequences caused by the receipf or accrual of interest on the Series 2004C Bonds or arising with respect to ownership of the Series 2004C Bonds. See "Tax Exemption- Series 2004C Bonds" and "Other Federal Tax Considera6ons"he2in. Interest on fhe Series 2004D Bonds is includable in gross income for purposes oi United States and Sfate of Minnesota income tax. See "Taxability of lnterest-Series 2004D Bonds" herein. City of Brooklyn Center, Minnesota $1,010,000 $17,245,000 General Obii ation Im rovement Bonds Taxable General Obli ation Tau Series 2004C Increment Bonds, Series 2004D (the "Series 2004C Bonds") (the "Series 2004D Bonds") (collectively, the "Bonds," the "Obligations," or the "Issues") (Book Entry Only) Dated Date: December 1, 2004 The Series 2004C Bonds will bear interest payable February 1 and August 1, commencing August 1, 2005. The Series 2004C Bonds mature February 1 as follows: 2006 $120,000 2008 $105,000 2010 $100,000 2012 $95,000 2014 $90,000 2007 $110,000 2009 $105,000 2011 $100,000 2013 $95,000 2015 $90,000 The City may elect on February 1, 2012, and on any day thereafter, to pay the Series 2004C Bonds due on or after February 1, 2013 at a price of par plus accrued interest. The Series 2004C Bonds will be qual�ed tax-exempt obligations pursuant to Section 265(b)(3) of the Intemal Revenue Code of 1986, as amended, and will not be subject to the altemative minimum tax for individuals. The Series 2004D Bonds will bear interest payable February 1 and August, 1 commencing February 1, 2005. The Series 2004D Bonds mature February 1 as follows: 2005 $410,000 2009 $685,000 2012 800,000 2015 $1,380,000 2018 $1,610,000 2006 $590,000 2010 $715,000 2013 $1,240,000 2016 $1,450,000 2019 $1,720,000 2007 $625,000 2011 $750,000 2014 $1,305,000 2017 $1,540,000 2020 $1,800,000 2008 $625,000 The City may elect on February 1, 2016, and on any day thereafter, to pay the Series 2004D Bonds due on or after February 1, 2017 at a price of par plus accrued interest. Common to Both Issues 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 and must conform to the maturity schedule set forth above at a price of par plus accrued interest to the date of redemption. The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. Additional sources of revenues pledged to the payment of the Bonds are described herein. A separate bid must be submitted for each Issue, along with a certified or cashier's check or a Financial Surety Bond, for not less than the amounts shown below. Bidders shall specify rates in integral multiples of 5/100 or 1/8 of 1%. Rates must be in level or ascending order. Award of each issue will be made on the basis of True Interest Cost (TIC). Minimum Bid Good Faith Series 2004C Bonds 998,890 10,100 Series 2004D Bonds 17,055,305 172,450 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. Paul, Minnesota, will serve as registrar (the "Registrar") for the Bonds and the City will pay for registration services. Bonds will be available for delivery at DTC on or about December 9, 2004. PROPOSALS RECEIVED: November 8, 2004 (Monday) until 11:00 A.M., Central Time AWARD: November 8 2004 Monda at 7:00 P.M. Cen ral im t T e Y) Further informaGon may be obtained from SPRINGSTED Incorporated, i S P R I N G S T E D Finanaal Advisor to the Issuer, 85 East Seventh Place, Suite 100, Saint Paul, Advisors to the Public Sector 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 Issuer from time to time (collectively, the "Official Statement"), may be treated as an Official Statement with respect to the Obligations described herein that is deemed final as of the date hereof (or of any such supplement or correction) by the tssuer, 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 Obligations, together with any other information required by law, shall constitute a"Final Official Statement" of the Issuer with respect to the Obligations, 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 Obligations to any underwriter or underwriting syndicate submitting a Proposal therefor, the Issuer 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 Obligations 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 Issuer designates the senior managing underwriter of the syndicate to whicn the Obligations 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 Obligations agrees thereby that if its bid is accepted by the Issuer (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Obligations for purposes of assuring the receipt by each such Participating Underwriter of the Final O�cial Statement. No dealer, broker, salesman or other person has been authorized by the Issuer to give any information or to make any representations with respect to the Obligations, 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 Issuer. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the Issuer 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 ISSUER 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 Issuer have not been included as appendices to the Official Statement or the Final Official Statement, they will be fumished on request. I TABLE OF CONTENTS Pa e s Terms of Proposal: $1,010,000 General Obligation Improvement Bonds, Series 2004D i-iv $17,245,000 Taxable General Obligation Tax Increment Bonds, Series 2004B v-viii IntroductoryStatement 1 Continuing Disclosure 1 TheBonds 2 TheSeries 2004C Bonds 4 TheSeries 2004D Bonds 5 FutureFinancing 5 Litigation 5 Legality............................................................................................................................. 6 Tax Exemption—Series 2004C Bonds 6 Other Federal Tax Considerations 6 Taxability of Interest Series 2004D Bonds 7 Bank-Qualified Tax-Exempt Obligations—Series 2004C Bonds 8 Ratings 8 FinancialAdvisor 8 Ce rtifi catio n 8 CityProperty Values 9 City lndebtedness 10 City Tax Rates, Levies and Collections 14 Fundson Hand 15 CityInvestments 15 General Information Conceming the City 16 Governmental Organization and Services 19 Proposed Forms of Legal Opinions Appendix I Continuing Disclosure Undertakings Appendix II Summary of Tax Levies, Payment Provisions, and Minnesota Real Property Valuation Appendix III Excerpts of 2003 Annual Financial Statements Appendix IV ProposalForms Inserted (This page was left blank intentionally.) THE CITY HAS AUTHORI ZED SPRINGSTED INCORPORATED TO NEGOTIATE T I H S ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,010,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2004C (BOOK ENTRY ONLI� Proposals for the Bonds will be received on Monday, November 8, 2004, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, 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 Biddin4. 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 Biddinq. 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 sha/l be solely responsible for making necessary arrangements to access PARITI'�' 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 PARITYY� 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� solexl as a communication mechanism to conduct the electronic bidding for the Bonds, and PARITY�' is not an agent of the City. If any provisions of this Terms of Proposal conflict with information provided by PARITYY�, 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 December 1, 2004, as the date of original issue, and wili bear interest payable on February 1 and August 1 of each year, commencing August 1, 2005. Interest will be computed on the basis of a 360-day year of finrelve 30-day months. The Bonds will mature February 1 in the years and amounts as follows: 2006 $120,000 2010 $100,000 2013 $95,000 2007 $110,000 2011 $100,000 2014 $90,000 2008 $105,000 2012 95,000 2015 $90,000 2009 $105,000 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 and must conform to the maturity schedule set forth above at a price of par plus accrued interest to the date of redemption. 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. REG ISTRAR 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, 2012, and on any day thereafter, to prepay Bonds due on or after February 1, 2013. 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. 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 special assessments against benefited properties. The proceeds will be used to finance various improvement projects within the City. -ii- TYPE OF PROPOSALS Proposals shall be for not less than $998,890 and accrued interest on the total principal amount of the Bonds. Pro osals sh II be a a c c o m a n i e d b a G o o d F a i t h D e o s i t D e o s i t m t h e f o r m P P Y P P o f a certi f ied or cashier's check or a Financial Sure Bond in the amount of $10,100, a able to tY P Y the order of the City. If a check is used, it must accompany the proposal. If a Financiat 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 and no interest will accrue to the purchaser, will be deposited by the City. 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 adjoumed, recessed, or continued to another date without award of the Bonds having been made. Rates shal! 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 proposaf 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 urchase of an �uch insurance olic or the P Y P Y issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. An y mcreased 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 b the urchaser to acce t delive f he y p p ry o t iii Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days foltowing 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 Pau! and Minneapolis, Minnesota, and of customary closing papers, including a no- litigation certificate. On the date of settlement, payment for the Bonds shaff be made in federal, 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 occur�ences 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, 85 East Seventh Place, Suite 100, 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 40 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 Undervvriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated October 25, 2004 BY ORDER OF THE CITY COUNCIL /s/ Sharon Knutson Clerk -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 $17,245,000 CITY OF BROOKLYN CENTER, MINNESOTA TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2004D (BOOK ENTRY ONLI� Proposais for the Bonds wili be received on Monday, November 8, 2004, untii 11:00 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, 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) Sea/ed Biddina.. 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 Biddin4. Notice is hereby given that electronic proposals will be received via PARITY'�. For purposes �of the electronic bidding process, the time as maintained by PARITYY� 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 PARITYY�" for purposes of submifting its electronic Bid in a timely manner and in compliance with the requirements of the Terms of Proposa/. 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 i caused b the services of PARITY�'. The Ci is usin the senrices of PARITY� solel as a Y �r communication mechanism to conduct the ele �onic bidding for the Bonds, and PARIT�' is 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 -v- DETAILS OF THE BONDS The Bonds will be dated December 1, 2004, as the date of original issue, and wiil bear interest payable on February 1 and August 1 of each year, commencing February 1, 2005. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts as follows: 2005 $410,000 2009 $685,000 2013 $1,240,000 2017 $1,540,000 2006 $590,000 2010 $715,000 2014 $1,305,000 2018 $1,610,000 2007 $625,000 2011 $750,000 2015 $1,380,000 2019 $1,720,000 2008 $625,000 2012 $800,000 2016 $1,450,000 2020 $1,800,000 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 and must conform to the maturity schedule set forth above at a price of par plus accrued interest to the date of redemption. 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 after February 1, 201�7. 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. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and �redit and power to levy direct general ad valorem taxes. In addition the City will pledge net "`�evenues 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, and site preparation in target redevelopment areas within the City's Tax Increment Financing District No. 3. -vi- 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 $17,055,305 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 $172,450, payable to the order of the City. If a check is used, it must accompany the proposal. If a Financial Su�ety 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 certifed 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 and no interest will accrue to the purchaser, will be deposited by the City. 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 adjoumed, 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 insuranc� 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. -vii- CUSIP NUMBERS If the Bonds uali for assi nment of CUSIP numbers such numbers will be rinted on th q fY 9 p e 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 pu�chaser 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, payment for the Bonds shall be made in federal, 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, 85 East Seventh Place, Suite 100, 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 tertn 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 250 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 October 25, 2004 BY ORDER OF THE CITY COUNCIL /s/ Sharon Knutson Clerk viii OFFICIAL STATEMENT CITY OF BROOKLYN CENTER, MINNESOTA $1,010,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2004C $17,245,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2004D (BOOK ENTRY ONLI� 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 $1,010,000 General Obligation Improvement Bonds, Series 2004D (the "Series 200Q�D Bonds") and $17,245,000 Taxable General Obligation Tax Increment Bonds, Series 2004D (the "Series 2004D Bonds"), collectively referred to as 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. Additional sources of revenues pledged to the payment of the Bonds are described herein. Inquiries may be directed to Mr. Dan 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, 85 East Seventh Place, Suite 100, St. Paul, Minnesota 55101-2887, or by telephoning (651) 223-3000. If information of a specific legal matter is desired, requests may be directed to Ms. Mary Dyrseth, Briggs and Morgan Professional Association, 2200 West First National Bank Buifding, 332 Minnesota Street, St. Paul, Minnesota 55101, or by telephoning (651) 808-6625. CONTINUING DISCLOSURE In order to assist the Underwriters in complying with SEC Rule 15c2-12 (the "Rule"), pursuant to the Award Resolutions and Continuing Disclosure Undertakings to be executed on behalf of the City on or before Bond closing, the City has and will covenant (the "Undertakings") 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 Undertakings, as well as the information to be contained in the annual report or the notices of material events, is set forth in the Undertakings 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(s) of the Bonds from the City and (iii) acceptable to the Mayor and City Manager of the City. The City has never failed to comply in all material respects with an revious undertakin YP gs under the Rule to provide annual reports or notices of matenal events. A failure by the City to comply with the Undertakings will not constitute an event of default on the Bonds (although holders or other beneficial awners 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 -1- I 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. THE BONDS General Description The Bonds are dated as of December 1, 2004. The Bonds will mature annually on February 1, as set forth on the cover of this O�cial Statement. The Bonds are issued in book entry form. Interest on the Series 2004C Bonds is payable August 1, 2005 and semi-annually thereafter on February 1 and August 1. Interest on the Series 2004D Bonds is payable February 1, 2005 and semi-annually thereafter on August 1 and February 1. 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, 2012, and on any day thereafter, to prepay the Series 2004C Bonds due on or after February 1, 2013. The City may elect on February 1, 2016, and on any day thereafter, to prepay the Series 2004D 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 wi{I then select by lot the benefiicial 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 each series of the Obligations, 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 Yo�k 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 securities that its participants ("Direct Participants") deposit with DTC. DTC also facilitates the settlement among Direct Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Direct Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants ("Direct Participants") include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its Direct -2- I Participants and by the New York Stock Exchange, Inc.; the American Stock Exchange LLC; and the National Association of Securities Dealers, inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly Indirect Participants The Rules applicable to DTC and its Direct and Indirect Participants are on file with the Securities and Exchange Commission. 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 tum to be recorded on the Direct and indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the 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 nominee, Cede 8� Co. or such other name as 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 no knowledge of the actual Beneficial Owners of the 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 govemed by arrangements among them, subject to any statutory or regulatory �equirements as may be in effect from time to time. Beneficial Owners of the Obligations may wish to take certain steps to augment transmission to them of notices of significant events with respect to the Obligations, such as redemptions, defaults, and proposed amendments to the security documents. 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 or in the altemative, 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 shall 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 Ca (nor such other DTC nominee) will consent or vote with respect to the Obligations. Under its usual procedures, DTC mails an Omnibus Proxy to the 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). Principal and interest payments on the Obligations will be made to Cede Co. or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts on the payable date in accordance with their respective holdings shown on DTC's records, unless DTC has reason to believe that it will not receive -3- payment on the payable date. 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 Registrar, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to Cede Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Registrar, disbursement of such payments to Direct Participants is the responsibility of DTC, and disbursement of such payments to the Beneficial Owners is the responsibility of Direct and Indirect Participants. A Beneficial Owner shall give notice to elect to have its Obligations purchased or redeemed, through its Direct Participant, to the nominee holding the Obligations, and shall effect delivery of such Obligations by causing the Direct Participant to transfer the Direct Participant's interest in the Obligations, on DTC's records, to the nominee holding the Obligations. The requirement for physical delivery of the Obligations in connection with a purchase or redemption will be deemed satisfied when the ownership rights in the Obligations are transferred by the Direct Participants on DTC's records and followed by a book-entry credit of purchased or redeemed Obtigations to the nominee holding the Obligations. DTC may discontinue providing its services as securities depository with respect to the Obligations at any time by giving reasonable notice to the Registrar. 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 transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered. 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. THE SERIES 2004C BONDS Authority and Purpose The Series 2004C Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. Proceeds of the Series 2004C Bonds, along with available City funds, will be used to finance various improvement projects within the City. The composition of the Series 2004C Bonds is as follows: Project Costs $1,160,385 Less: Available City Funds (180,395) Plus: Costs of Issuance 18,900 Allowance for Discount Bidding 11.110 Total Series 2004C Bonds $1,010,000 Security and Financing The Series 2004C 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 special assessments levied against benefited property for repayment of the Series 2004C -4- i Bonds. Special assessments in an aggregate principal amount of $976,477 were filed in 2004 for first collection in 2005 with a term of ten years and even annua! principal amounts. Interest on the unpaid balance of assessments will be charged at a rate of 6.5%. Special assessments, if collected in full, will be sufficient to pay 105% of the August 1 interest payment due in the collection year and the February 1 principal and interest payment due the following year. The City does not expect to levy taxes for repayment of the Series 2004C Bonds. THE SERIES 2004D BONDS Authority and Purpose The Series 2004D Bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475. The proceeds will be used to finance redevelopment activities including the acquisition, demolition, clearance, and site preparations in targeted redeveloped areas within the Brooklyn Center Economic Development District's Tax Increment District No. 3. The composition of the Series 2004D Bonds is as follows: Projects Costs $17,003,405 Costs of Issuance 51,900 Allowance for Discount Bidding 189,695 Total Series 2004D Bonds $17,245,000 Security and Financing The Series 2004D 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 tax increment revenues of the Brooklyn Center Economic Development District's Tax Increment Financing District No. 3. The February 1, 2005 principal and interest payment will be made from available City funds. Thereafter, each year's tax increment collections, if collected in full, will be sufficient to pay 105% of the August 1 interest payment due in the year of collection and the February 1 principal and interest payment due the following year. The City does not expect to levy taxes for repayment of the Series 2004D Bonds. FUTURE FINANCING The City does not anticipate issuing any additional debt within the next 90 days. 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. -5- 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. Legal opinions in substantially the forms set out as Appendix I to this Official Statement, will be delivered at closing. TAX EXEMPTION—SERIES 2004C BONDS At closing Briggs and Morgan, Professional Association, Bond Counsel, will render an opinion that, at the time of their issuance and delivery to the original purchaser, under present federal and State of Minnesota laws, regulations, rulings and decisions (which excludes any pending legislation which may have a retroactive effect), the interest on each Series 2004C Bond is excluded from gross income for purposes of United States income tax and is excluded, to the same extent, in computing both gross income and taxable net income for purposes of State of Minnesota income tax (other than Minnesota franchise taxes measured by income and imposed on corporations and financial institutions), and that interest on the Series 2004C Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax imposed on individuals and corporations or the Minnesota altemative minimum tax applicable to individuals, estates or trusts; provided that interest on the Series 2004C Bonds is subject to federal income taxation to the extent it is included as part of adjusted current earnings for purposes of computing the alternative minimum tax imposed on certain corporations. No opinion will be expressed by Bond Counsel regarding other federal or state tax consequences caused by the receipt or accrual of interest on the Series 2004C Bonds or arising with respect to ownership of the Series 2004C Bonds. Preservation of the exclusion of interest on the Series 2004C Bonds from federal gross income and state gross and taxable net income, however, depends upon compliance by the City with all requirements of the Internal Revenue Code of 1986, as amended, (the "Code") that must be satisfied subsequent to the issuance of the Series 2004C Bonds in order that interest thereon be (or continue to be) excluded from federal gross income and state gross and taxable net income. The City will covenant to comply with requirements necessary under the Code to establish and maintain the Series 2004C Bonds as tax-exempt under Section 103 thereof, including without limitation, requirements relating to temporary periods for investments and limitations on amounts invested at a yield greater than the yield on the Series 2004C Bonds. OTHER FEDERAL TAX CONSIDERATIONS Property and Casualty Insurance Companies Property and casualty insurance companies are required to reduce the amount of their loss reserve deduction by 15% of the amount of tax-exempt interest received or accrued during the taxable year on certain obligations acquired after August 7, 1986, including interest on the Series 2004C Bonds. -6- Foreign Insurance Companies Foreign companies carrying on an insurance business in the United States are subject to a tax on income which is effectively connected with their conduct of any trade or business in the United States, including "net investment income." Net investment income includes tax-exempt interest such as interest on the Series 2004C Bonds. Branch Profits Tax A foreign corporation is subject to a branch profits tax equal to 30% of the "dividend equivalent amount" for the taxable year. The "dividend equivalent amount" is the foreign corporation's "effectively connected earnings and profits" adjusted for increase or decrease in "U.S. net equity." A branch's eamings and profits may include tax-exempt municipal bond interest, such as interest on the Series 2004C Bonds. Passive Investment Income of S Corporations Passive investment income, including interest on the Series 2004C Bonds, may be subject to federal income taxation under Section 1375 of the Code for an S corporation that has Subchapter C eamings and profits at the close of the taxable year if more than 25% of the gross receipts of such S corporation is passive investment income. Financial Institutions For federal income tax purposes, financial institutions are unable to deduct any portion of the interest expense allocable to the ownership of certain tax-exempt obligations acquired after August 7, 1986, including the Series 2004C Bonds. See "Bank-Qualified Tax-Exempt Obligations—Series 2004C Bonds" on the following page. General The preceding is not a comprehensive list of all federal tax consequences which may arise from the receipt or accrual of interest on the Series 2004C Bonds. The receipt or accrual of interest on the Series 2004C Bonds may otherwise affect the federal income tax (or Minnesota income tax or franchise tax) liability of the recipient based on the particular taxes to which the recipient is subject and the particular tax status of other items of income or deductions. All prospective purchasers of the Series 2004C Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the Series 2004C Bonds. TAXABILITY OF INTEREST—SERIES 2004D BONDS The interest to be paid on the Series 2004D Bonds is includable in the income of the recipient for purposes of United States and State of Minnesota income taxation. -7- BANK-QUALIFIED TAX-EXEMPT OBLIGATIONS—SERIES 2004C BONDS The City will designate the Series 2004C Bonds as "bank-qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Intemal Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations. "Qualified tax-exempt obligations" are treated as acquired by a financial institution before August 8, 1986. Interest allocable to such obligations remains subject to the 20% disallowance under prior law. RATINGS Application for ratings of the Bonds has been made to Moody's Investors Service ("Moody's"), 99 Church Street, New York, New York. If ratings are assigned, they will reflect only the opinion of Moody's. Any explanation of the significance of the ratings may be obtained only from Moody's. There is no assurance that ratings, if assigned, will continue for any given period of time, or that such ratings will not be revised or withdrawn if, in the judgment of Moody's, circumstances so waRant. A revision or withdrawal of the ratings may have an adverse effect on the market price of the Bonds. FINANCIAL ADVISOR The Cify has retained Springsted Incorporated, Advisors to the Public Sector, 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 firm 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(s) will be fumished 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. -8- CITY PROPERTY VALUES 2003 Indicated Market Value of Taxable Properly: $2,033,985,982 Calcu/ated by dividing the county assessor's estimated market value of $1,625,154,800 by the 2003 sa/es ratio of 79.9% for the Cify as determined by the State Department of Revenue. 2003 Taxable Net Tax Capacity: $18,588,859 2003 Net Tax Capacity $20,588,478 Less: Captured Tax Increment Tax Capacity (3,097,215) Contribution to Fiscal Disparities (2,523,226) Plus: Distribution from Fiscal Disparities 3.620.822 2003 Taxable Net Tax Capacity $18,588,859 2003 Taxable Net Tax Capacity by Type of Property Residential Homestead $10,532,558 56.66% Commercial/Industrial, Public Utility, and Railroad 5,735,895 30.86 Residential Non-Homestead 2,036,168 10.95 Agricultural 3,670 0.02 Personal Property 280.568 1.51 Total $18,588,859 100.00% Reflects adjustments for fiscal disparities and captured tax incremenf tax capacity. Trend of Values Indicated Estimated Taxable Net Market Value�al Market Value Tax Capacitv�bl 2003 $2,033,985,982 $1,625,154,800 $18,588,859 2002 1,847,358,801 1,479,734,400 17,426,504 2001 1,661,899,635 1,367,743,400 16,212,278 2000 1,453,688,431 1,269,070,000 20,924,326 1999 1,270,123,587 1,168,513,700 20,387,444 �a1 Calcu/ated by dividing the county assessor's estimated market va/ue by tf�e sa/es ratio as cert�ed for the City each year by ti►e State Department of Revenue. �b� See Appendix Ill for an explanation of taxable net tax capacity, fhe Minnesota property fax law, and 2001 legis/ative changes to the Minnesofa property tax sysfem. The decrease in taxab/e net tax capacity for 2001 was due primari/y to reductions in property tax c/ass rates, as detailed in Appendix lll. -9- Ten of the Largest Taxpayers in the City 2003 Net Taxpaver �e of Prooertv Tax Caqacity Talisman Brookdale Assoc., LLC Brookdale Mall 899,250�a� Target Corporation Retail 299,700 Brookdale Comer LLC Retail 195,250 Hennepin Co. Hotel Association Commercial 194,250 Regal Cinemas Inc. Theater 173,248 Medtronic Inc. Industrial 173,238 TLN Lanel A Ltd Partnership Apartments 160,475 Sears Roebuck and Co. Department Store 150,220 Wicke F s urniture Compan Industrial 143 800 Y Brooklyn Center Leased Housing Association Commercial 130.375 Total $2,519,806� �a1 As of October 31, 2004, Talisman Brookda/e Assoc., LLC is delinquent in its tax payments for payable 2004. �b1 Represents 13.6% of the City's 2003 taxable net tax capacity. CITY INDEBTEDNESS Legal Debt Limit Legal Debt Limit (2% of Estimated Market Value) $32,503,096 Less: Net Debt Subject to Limit (5,368.000) Legal Net Debt Margin as of September 2, 2004 $27,135,096 General Obligation Debt Supported by Taxes* Principal Date Original Final Outstanding of Issue Amount Purpose Maturitv As of 9-2-04 12-1-97 $7,900,000 Police and Fire Building 2-1-2005 495,000 1-1-04 5,080,000 Police and Fire Building Refunding 2-1-2013 5,045.000 Total $5,540,000 These issues are subject to the statutory debt limit. -10- General Obligation Debt Supported Primarily by Taxes and/or Special Assessments Principal Date Original Final Outstanding of lssue Amount Pumose Maturitv As of 9-2-04 8-1-94 835,000 Improvements 2-1-2005 95,000 11-1-95 780,000 Improvements 2-1-2006 175,000 11-1-96 1,440,000 Improvements 2-1-2007 470,000 12-1-97 1,075,000 Improvements 2-1-2008 405,000 12-1-98 1,085,000 Improvements 2-1-2009 505,000 12-1-99 1,585,000 Improvements 2-1-2010 930,000 12-1-00 735,000 Improvements 2-1-2011 495,000 12-1-01 730,000 Improvements 2-1-2012 565,000 1-1-03 1,205,000 Improvements 2-1-2013 1,060,000 12-1-04 1,010,000 Improvements (the Series 2004C Bonds) 2-1-2015 1.010.000 Total $5,710,000 General Obligation Debt Supported by Tax Increments Principal Date Original Final Outstanding of Issue Amount Pumose Maturitv As of 9-2-04 11-1-95 4,560,000 Taxable Tax Increment 2-1-2005 360,000 1-1-04 2,470,000 Taxable Tax Increment Refunding 2-1-2011 2,470,000 12-1-04 17,245,000 Taxable Tax Increment (the Series 2004D Bonds) 2-1-2020 17.245.000 Total $20,075,000 General Obligation Debt Supported by Revenues (State Allocations and Enterprise Revenues) Principal Date Original Final Outstanding of Issue Amount Purpose Maturitv As of 9-2-04 8-1-94 $1,830,000 Storm Sewer Revenue 2-1-2005 $230,000 12-1-98 1,585,000 State-Aid Road Refunding 4-1-2006 575.000 Total $805,000 -11- Annual Calendar Year Debt Service Pa ments Includin These Issues Y 9 G.O. Debt Supported G.O. Debt Supported Primarily by Taxes bv Taxes and/or Special Assessments Principal Principal Year Principal Interest Principal Interest�al 2004 (at 9-2) (Paid) (Paid) (Paid) (Paid) 2005 495,000 648,941.25 990,000 $1,190,597.50 2006 580,000 717,127.50 1,000,000 1,171,388.75 2007 590,000 714,690.00 900,000 1,033,133.75 2008 600,000 710,552.50 720,000 820,395.00 2009 610,000 703,902.50 615,000 688,456.25 2010 640,000 715,152.50 495,000 545,540.00 2011 640,000 695,632.50 340,000 373,248.75 2012 685,000 719,581.25 270,000 290,981.25 2013 700,000 711,725.00 200,000 211,605.00 2014 90,000 95,760.00 2015 90,000 91,957.50 Total $5,540,000 $6,337,305.00 $5,710,000� $6,513,063.75 G.O. Debt Supported G.O. Debt Supported bv Tax Increments bv Revenues Principal Principal Year Principal Interest(�) Princiqal Interest 2004 (at 9-2) (Paid) (Paid) (Paid) 11,360 2005 770,000 1,447,484.18 $510,000 533,470 2006 1,000,000 1,938,057.50 295,000 300,900 2007 1,050,000 1,955,330.00 2008 1,030,000 1,898,210.00 2009 1,095,000 1,921,646.25 2010 1,120,000 1,899,797.50 2011 1,165,000 1,893,200.00 2012 800,000 1,481,270.00 2013 1,240,000 1,869,850.00 2014 1,305,000 1,869,300.00 2015 1,380,000 1,872,765.00 2016 1,450,000 1,865,285.00 2017 1,540,000 1,872,675.00 2018 1,610,000 1,854,860.00 2019 1,720,000 1,871,190.00 2020 1.800,000 1.851.300.00 Total $20,075,OOO�d� $29,362,220.43 $805,000 $845,730 (a) Includes tf►e Series 2004C Bonds at an assumed average annual inferest rate of 3.75%. (b) 98.4 of this debt will be retired within ten years. (c) lncludes the Series 2004D Bo�ds at an assumed average annual interest rate of 5.40%. (d) 52. 7% of this debt will be retired wifhin ten years. -12- Summary of General Obligation Direct Debt Gross Less: Debt Net Debt Service Funds�al Direct Debt Supported by Taxes 5,540,000 $(172,000) 5,368,000 Supported Primarily by Taxes and/or S ecial Ass p essments 5,710,000 (701,000) 5,009,000 Supported by Tax Increments 20,075,000 (308,000) 19,767,000 Supported by Revenues 805,000 �b� 805,000 �a1 Debt service funds are as of August 31, 2004 and include money to pay bofh principal and interest. (b) The Sfate Aid Road Refunding Bonds are paid from allotmenfs made by the State of Minnesota Municipa/ State Aid Highway Fund; and the Sform Sewer Bonds are paid direct/y from net revenues of the Storm Drainage Enterprise Fund. Indirect General Obligation Debt Debt Applicable to 2003 Taxable G.O. Debt Tax CaoaciN in Citv Taxinq Unit�al Net Tax Ca�acitv As of 9-2-04�b1 Percent Amount Hennepin County $1,070,683,377 $382,605,000 1.7% 6,504,285 Hennepin County Regional Railroad 1,070,683,377 48,555,000 1.7 825,435 Hennepin Parks 803,642,255 40,010,000 2.3 920,230 ISD 11 (Anoka-Hennepin) 153,539,233 186,506,003�� 1.6 2,984,096 ISD 279 (Osseo) 106,000,958 205,480,000 5.9 12,123,320 ISD 281 (Robbinsdale) 78,725,196 160,400,000 5.4 8,661,600 ISD 286 (Brooklyn Center) 5,634,983 31,050,000 100.0 31,050,000 Metropolitan Council 2,380,953,804 23,700,OOO�d1 0.8 189,600 Metropolitan Transit 2,066,330,567 176,310,OOO�e� 0.9 1,586,790 Total $64,845,356 �a� Only fhose taxing units with debt outstanding are shown here. �b) Exc/udes general obligation tax and aid anficipation debf and revenue supported debt. (c) Includes $9, 060, 000 of /ease revenue debt. �d� Excludes outstanding general obligation bonds and loans supported by sanitary sewer system revenues, 911 user fees or housing renta/ revenues. (e) Includes $2,975,000 Genera/ Obligation Transit Refunding Bonds, Series 2004F, schedu/ed to settle on November 18, 2004. Excludes the February 1, 2008 through February 9, 2018 maturities of the Series 1997C Bonds fhat the Council's 2004F Bonds are expected to refund. Debt Ratios G.O. Net G.O. Indirect Direct Debt Net Direct Debt To 2003 Indicated Market Value ($2,033,985,982) 1.48% 4.67% Per Capita (29,174 2003 State Demographer's Estimate) $1,033 $3,256 Excludes general obligation debt supported by revenues. -13- CITY TAX RATES, LEVIES AND COLLECTIONS Tax Capacity Rates for City Resident in Independent School District 286 2003/04 For 1999/00 2000/01 2001/02 2002/03 Total Debt Oniv Hennepin County 39.655% 37.624% 50.409% 50.607% 47.324% 3.804% City of Brooklyn Center�aJ 35.369 36.797 58.901 54.021 53.693 1.414 ISD 286 (Brooklyn Center)�bJ 44.356 47.211 26.338 49.817 39.892 30.470 Special Districts��1 8.426 8.126 7.068 7.757 7.192 2.910 Total 127.806% 129.758% 142.716% 162.202% 148.101 38.598% �a� The City a/so has a 2003/04 tax rate of 0.04440% spread on the market value of property in support of debt service. �b� Independent School District 286 (Brook/yn Center) a/so has a 2003/04 tax rate of 0.94722% spread on the market va/ue of property in support of an excess operating levy. Specia/ districts include Metropolitan Council, Mosquito Control, Metropolifan Transit, Hennepin Park Museum, Hennepin County Regiona/ Rail Authority, and Hennepin County Parks. NOTE: Property faxes are determined by mu/tiplying the net tax capacity by the fax capacity rate expressed as a percentage. (See Appendix lli.) Tax Levies and Collections Collected During Collected Net Collection Year As of 5-31-04 Lew/Collect Lew Amount Percent Amount Percent 2003/04 $9,994,050 (In Process of Collection) 2002/03 9,585,107 $9,280,043 96.8% $9,523,262 99.4% 2001/02 9,554,089 9,262,641 96.9 9,476,123 99.2 2000/01 8,420,720 8,132,527 96.6 8,362,309 99.3 1999/00 8,100,268 8,044,803 99.3 8,082,094 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. -14- FUNDS ON HAND As of August 31, 2004 Fund Cash and Investments General 6,339,000 Special Revenue 6,048,000 Capital Projects 1,892,000 Debt Service: Specia! Assessment 701,000 Tax Increment 308,000 Building Improvement 172,000 Enterprise 7,322,000 intemal Service 5,468,000 Total $28,250,000 CITY INVESTMENTS The City's investment policy, last revised in July 2001, has the objectives of preserving safety of principal, retaining sufficient liquidity, providing a market rate of retum, and yielding a stable return on all invested City funds. Minnesota Statutes, Chapter 118A, authorize and define an investment program for municipal govemments. The City shall 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 o�ganizations created by an act of Congress; including govemmental bills, notes, bonds, and other securities. b. Commercial paper issued by U.S. corporations or thei� Canadian subsidiaries that is rated in the highest quality by at least finro 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 insu�ed 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, Chapte� 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 Cha ter 118A p 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. -15- i 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. 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, even if insured by a Federal Agency, and stripped securities also shall not be purchased, pursuant to the 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 consideratians. 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 retum 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 I I 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 City Treasurer, with the City Treasurer responsible for establishing and maintaining an intemal control structure to provide reasonable assurance that the objectives of the policy are met. As of August 31, 2003 the City had $28,250,200 (par value) invested, with a market value of $28,333,000 (100% of the original cost to the City). Government agency securities totaled $16,350,000, representing 58% of the porifolio. The balance of $11,900,000, representing 42% of the portfolio, is in money market accounts. Six percent of the City's portfolio matures within three years or less, 37% matures within six years or less, and the longest maturity held by the City is currently scheduled to mature in 2022 although is subject to call in 2006. GENERAL INFORMATION CONCERNING THE CITY The City of Brooklyn Center is a northern suburb of the Minneapolis/Saint Paul metropolitan area, lying adjacent to the City of Minneapolis. The City is wholly within Hennepin County and encompasses an area of approximately 8.5 square miles. 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 current 2003 State Demographic Center estimate cou�t for the City was 29,174, which remains steady from the 2000 Census. The 2000 U.S. Census o count for the City was 29,172, a 1.0 /o increase from the 1990 Census. The number of housing units has generally continued to increase from 10,493 in 1970 to 11,035 in 1980, 11,370 in 1990, 11,430 in 2000, and 11,432 in 2001. 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 development of a strong commercial tax base in the City. -16- Growth and Dev elo ment P Commercial and Industrial property comprises approximately 31 of the City's taxable net tax capacity. There are four major shopping centers located in the City in addition to a number of 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 Marshall Field's and has recentl com leted a ma'or renovation. Included in this renovation re new Y P J a tenants including Bames and Noble and Old Navy. The other retail centers in the City are Brookdale Square, a 125,000 square foot strip mall plus an eight screen movie theater; Shingle Creek Center, a 157,000 square foot complex anchared by Target; and Brookview Plaza, a 70,000 square foot center anchored by Best Buy. Additionally, Rega1 Cinema operates a complex with 20 screens in an 85,000 square foot facility. Global lndustries, an office furniture distributor, built and opened a new 27,000 square foot showroom facility in 2004. This facility will serve as the showroom facility for the Minneapolis- St. Paul metropolitan area. Also recently completed is a redevelopment of a large industrial area that required remediation of polluted soil conditions. Afte� soils remediation, three large buildings housing tenants Wickes Fumiture and Caribou Coffee wefe completed during 2004. Transportation and highway construction is reaching a conclusion in the area with expansion of Interstate 94 to six lanes, State Highway 100 reconstructed to limit access and increase to six lanes, and Brooklyn Boulevard, a major arterial serving the City being recently reconstructed to provide better access to commercial establishments. This convergence of highways makes the City an attractive site for hotels and motels. Currently operating in the City are Americlnn, Baymont Inn, Comfort Inn, Country Inn Suites, Days Inn, Extended StayAmerica, Hilton Hotel, Motel 6, and Super 8 Motel. Summary of Building Permits New Residential Total Permits Permits onlv Yea� Number Value Number Value 2004 (at 8-31) 542 $16,505,226 8 $1,156,000 2003 886 53,918,257 15 2,003,000" 2002 476 50,701,779 2 280,000 2001 954 63,720,613 0 -0- 2000 1,299 20,450,844 3 311,800 1999 1,745 44,188,569 7 679,600 1998 1,482 23,216,525 4 612,900 1997 796 18,274,806 3 225,000 1996 607 16,647,400 18 1,126,000 1995 603 11,945,264 2 153,000 1994 604 13,038,263 9 587,000 Includes fownhomes. -17- Major Empfoyers in the City Approximate Number Emplover Product/Service of Emqfovees Brookdale Center Shopping Center 1,700 Promeon, Div, of Medtronics Medical Components 900 Graco, fnc. Spray Paint Equipment 832 Target Retail 210 Cub Foods Grocery 180 Ault, Inc. Manufacturing 150 TCR Corporation Metal Components 135 Best Buy Electronic Retail 130 Kohl's Retail 115 Cass Screw Machine Products Screw Machine Parts 110 Precision Inc. Electronic Transformers and Coils 106 Creative Banner Assemb{ies Banners and Flags 75 Northwest Athletic Gub Health Club 75 Hiawatha Rubber Company Custom Rubber Molder 71 Source: Telephone survey of individual emp/oyers, conducted October 2004. Labor Force Data September 2004 September 2003 Civilian Unemployment Civlian Unemployment Labor Force Rate Labor Force Rate Hennepin County 707,618 4.7% 697,310 4.8% Minneapolis/St. Paul MSA 1,864,661 4.5 ,826,881 4.6 State of Minnesota 2,963,180 4.4 2,92$,375 4.4 Source: Minnesota Department of Employmenf and Economic Development. 2004 data are preliminary. Financial lnstitutions Branch facifities of financia{ institutions located in Brooklyn Center include: Wells Fargo, Nationa( Association; Bremer Bank, National Association; and TCF National Bank Minnesota, as well as numerous credit unions. Source: hitp:/Iwww.ffiec.gov/nic -18- Education The City is served by four independent school districts: ISD 279 (Osseo), ISD 286 (Brookfyn Center), ISD 281 (Robbinsdale) and ISD 11 (Anoka-Hennepin). The City's taxable net tax capacity is attributable to each of the four schoo! districts as follows: Portion of 2003 Taxabie Net Tax CaQacifir Located in the Citv of Total ISD 279 (Osseo) 6,293,048 33.8% ISD 286 (Brookfyn Center)* 5,634,983 30.3 {SD 281 (Robbinsdale) 4,231,5Q8 22.8 ISD 11 (Anoka-Hennepin) 2.429.320 13.1 Total $18,588,859 100.0% ISD 286 is located entire/y within the City of Brooklyn Center. Medical Major medical facifities in the Minneapolis/St. Pauf inetropolitan area are easily accessible to all Gity residents. North Memoria{ 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://www.health.sfate.mn.us/divs/fpc/directory/fpcdir.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 Gouncil-Manager form of government. The Mayor and four Council Members are elected to serve overlapping four-year terms. Individua{s comprising the current City Council are listed below: Exoiration of Term Myma Kragness Mayor December 31, 2006 Kathleen Carmody Council Member December 31, 2006 Kay Lasman Council Member December 31, 2004 Diane Niesen Council Member December 31, 2006 Robert Peppe Council Member December 31, 2004' Council member Kay Lasman is running for re-election on November 2, 2004. Council member Roberf Peppe will nof be running for re-election on November 2, 200�4. The City Manager, Mr. Michael J. McCauley, is responsible for the administration of Council policy and the daily management of the City. The Manager is appointed by the Council and -19- serves at its discretion. Mr. McCauley has served the City in the position of City Manager since December 1995. The Director of Fiscal and Support Services, Mr. Dan Jordet, is responsible for directing the City's financial operations, including preparation of the annual financial report and interim reports, and the investment of City funds. Services The City has 150 full-time employees serving in various departments. Forty-one full-time sworn police officers and a support staff of 15 provide protective services in the City. Fire protection is provided by one full-time member and a 35-member volunteer force. The City has two fire stations and a class 4 insurance rating. All areas of the City are senriced 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 8,934 as of December 31, 2003. 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 8,786 sewer connections at the end of 2003. During 2003, the City leased space for the operation of its municipal liquor store facilities. The leases are both 10-year leases, which began in June 2000 and 2003, with an option of an additional 10-year extension. Total rental expense under the lease agreements for the years ended December 31, 2003 and 2002 were $142,730 and $158,702, respectively. Future lease payments are predicted on a formula that includes a base rate rent, property taxes, and gross revenues. City offices are located in the Brooklyn Center Civic Center which was constructed in 1971. City Hall was upgraded in 2002 to add additional technology and customer service abilities. The Civic Center was remodeled and upgraded in 2002 expanding exercise and game rooms and adding classrooms and craft rooms. The 300-seat hall and 50-meter indoor/outdoor swimming pool were upgraded. 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. -20- General Fund Budget Summary 2003 2004 Actual Budaet Revenues: Property Taxes 9,094,313 9,212,152 Sales Tax (Lodging) 661,267 660,000 Fines ForFeitures 290,408 225,000 Licenses Permits 827,685 698,070 Intergovemmental Revenue 1,948,457 1,335,216 Charges for Services 678,875 626,820 Miscellaneous Revenue 358,411 225,000 Total $13,859,416 $12,982,258 Expenditures: General Gove�nment 2,497,608 2,549,909 Public Safety 6,272,875 6,087.?80 Public Works 1,649,405 2,647,4�8 Social Services 91,581 73,024 Parks and Recreation 2,068,034 1,179,479 Convention Tourism 316,059 330,000 Community Development 0 460,288 Nondepartmental 332,608 413,804 Transfer out 1,151,161 25,000 Administrative Service Reimbursement (607.221) (784,084) Total $13,772,110 $12,982,258 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, 2003, 2002, and 2001 were $309,237, $299,954, and $296,052, respectively. The City's contributions to PEPFF for the years ended December 31, 2003, 2002, and 2001 were $257,234, $255,923, and $239,799, respectively. The contributions were equal to the required contributions for each year as set by State Statute. The City contributes to the Brooklyn Center Fire Department Relief Association (the "Association"), a single-employer public employee retirement system. The City levies property taxes at the direction of and for the benefit of the Association and passes through state-aids allocated to the Association, all in accordance with enabling State statutes. City and State-aid contributions totaled $16,239 and $102,269, respectively, in 2002. The actuarial valuation performed at January 1, 2003 was $111,821, which represents funding for normal cost of $90,148, and administration costs of $21,673. -21- (This page was left blank intentionally.) APPENDIX I 2200 FIRST NATIONAL BANK BUILDING 332 MINNESOTA STREET SAINT PAUL, MINNESOTA 55101 TELEPHONE (651) 808-6600 B RI GGS AND M ORGAN FACSn� �r�� gos-�So PROFESSIONAL ASSOQATTON WRITER'S DIRECT DIAL WRITER'S E-MAIL PROPOSED FORMS OF LEGAL OPINIONS $1,010,000 GENER,AL OBLIGATION IlvIPROVEMENT BONDS, SERIES 2004C 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 $1,010,000 General Obligation Improvement Bonds, Series 2004C, bearing a date of original issue of December 1, 2004 (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 Sta.tement 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 confornuty 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 sta.tements 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 hereo fl, regulations, rulings and decisions, it is our opinion that: (1) The proceedings show lawful authority for the issuance of the Bonds according to 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 I-1 the same wrthout limitation as to rate or amount; provided that the enforceability (but not the 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) At the time of the issuance and delivery of the Bonds to the original purchaser, the interest on the Bonds is excluded from gross income for United States income taac purposes and is excluded, to the same extent, from both gross income and taxable net income for State of Minnesota income tax purposes (other than Minnesota franchise taxes measured by income and imposed on corporations and financial institutions), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations or the Minnesota altemative minimum ta.�c applicable to individuals, estates or trusts; it should be noted, however, that for the purpose of computing the federal alternative minimum tax imposed on corporations, such interest is taken into account in determining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from oss inc gr ome for federal income tax purposes and from both gross income and taxable net income for State of Minnesota income tax purposes. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income and taxable net income retroactive to the date of issuance of the Bonds. We express no opinion regarding other state or federal tax consequences caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of the Bonds. Dated at Saint Paul, Minnesota, this day of 2004. Professional Association I-2 2200 FIRST NATTONAL BANK BUILDING 332 MINNESOTA STREET SAINT PAUt,, MINNESOTA 55101 RI GGS AND ��PHONE (651) 80&6600 M ORGAN FAGSIMILE (651) 80&6450 PROFESSIONAL ASSOQATION WRTTER'S DIRECT DIAL WRITER'S E-MAIL $17,245,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2004D 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 $17,245,000 Taxable Genera.l Obligation Tax Increment Bonds, Series 2004D, bearing a date of original issue of December 1, 2004 (the "Bonds"). We have exaznined 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 confornuty 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 hereo fl, regulations, rulings and decisions, it is our opinion that: (1) The proceedings show lawful authority for the issuance of the Bonds according to 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 ta�c to pay the same without limitation as to rate or amount; provided that the enforceability (but not the validity) of the Bonds and the pledge of taxes for the payment of the principal and interest I-3 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 banla insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted. (3) At the time of the issuance and delivery of the Bonds to the original purchaser, 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 2004. Professional Association I-4 APPENDIX II CONT{NUING DISCLOSURE UNDERTAKINGS The Series 2004C Bonds 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 $1,010,000 General Obligation Improvement Bonds, Series 2004C (the "Bonds"). The Bonds are being issued pursuant to a Resolution adopted November 8, 2004 (the "Resolution"). Pursuant to the Resolution and this Undertaking, the Issuer covenants and agrees as follows: SECTION 1. Puroose of the Disclosure Undertakin�. 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). SECTION 2. 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 sha11 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" sha.11 mean the financia.l 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 govemmental accounting standards promulgated by the Government Accounting Standazds 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 Sta.tutes, Section 475.51, Subdivision 9. "MSRB" shall mean the Municipal Securities Rulemaking Boazd. "National Repository" shall mean any Nationa.11y Recognized Municipal Securities Information Repository for purposes of the Rule. The National Repositories as of the date of execution of this Undertaking aze as listed on Exhibit A. "Occurrence(s)" shall mean any of the events listed in Section S.A. of this Disclosure Undertaking. i I-1 "Official Statement" shall be the Official Statement dated 2004, prepazed in connection with the Bonds. "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.. SECTION 3. Provision of Annual Reports. A. Beginning in connection with the Fiscal Year ending on December 31, 2004, the Issuer shall, or shall cause the Dissemination Agent to, as soon as available, but in any event not later than December 31, 2005, 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. B. 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. SECTION 4. Content and Format of Annual Reuorts. 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. The following financial information and operating data shall be supplied: A. an update of the type of information contained in the Official Statement under the caption CTTY PROPERTY VALUES; CITY INDEBTEDNESS; and CITY TAX RATES, LEV�S AND COLLECTIONS; I I-2 B. Audited Financial Statements of the Issuer. The Audited Financial Sta.tements 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 prepazed will be pursuant to generally accepted accounting principles promulgated by the Financial Accounting Standards Board, as such pr:;� :��s aze modified by the govemmental accounting standards promulgated by the Government Accounting Standazds Boazd, 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 sha11 promptly provide them to the Repositories when available. SECTION 5. Renortin� of Si�nificant Events. A. 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 t� opinions or events affecting the tax-exempt status of the security; (7) modifications to rights of security holders; (8) Bond calls; (9) defeasances; (10) release, substitution or sale of property securing repayment of the securities; and (11) rating changes. B. Whenever an event listed in Section S.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 pmmptly file a notice of such Occurrence with each National Repository or the MSRB and with the State Depository, if any. C. 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. SECTION 6. Temunation of Renorting Obli�ation. 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. SECTION 7. Dissemination A�ent. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure i I-3 Undertaking, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. SECTION 8. A.mendment; Waiver. Notwithstandin an other i g y p r o v i s o n o f t l u s 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. SECTION 9. 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. SECTION 10. 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. SECTION 11. 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. SECTION 12. Reserved Riehts. 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. I I-4 I Date: 2004 CITY OF BROOKLYN CENTER, MINNESOTA BY Its Mayor By Its City Manager I I-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: Munisna.Bloombere.com httn:Uwww.bloomberg.com/markets/rates/municontacts.html DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 Phone: 201-346-0701 Fax: 201-947-0107 Email: nrmsir(�a,dncdata.com httn ://www. dn cdata. com FT Interactive Data Attn: NRMSIR 100 William Street New York, NY 10038 Phone: 212-771-6999 Fax: 212-771-7390 (Secondary Market Information) Fax: 212-771-7391 (Primary Market Information) Email: NRMSIRna,FTID.com httn://www.interactivedata.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 renositorvna.sandn.com www.iikeenv.com/liikeenv/�ser descrip data ren.html This list is current as of the date of issuance of the Bonds. I I-6 CITY OF BROOICLYN CENTER, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS For The Year Ended December 31, 2003 Amounts re rt o po ed for �overnmental activities in the statement of activities are different because: Net changes in fund balances totai governmental funds (statement 4) $2,382,404 Governmen�tal funds report capital outlays as expenditures. However, in the statement of activities the cost of those asseu is allocated over their estimated usefu! lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 323,269 In the statement of activities, only the gain on the sale of capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balance by the cost of the capital assets sold. (95,000) Revenues in the statement of activities that do not provide current financial resources aze not reported as revenues in the funds. (402,575) The issuance of lonb term debt (e.�., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of lon;-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. 2,015,000 Internal service funds are used by management to charge the cost of certain activities W individual funds. This amount is nec revenue atVibutabie to governmental activities. �1�2��82� 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 �ovemmental funds. 9,344 Change in net asseu of govemmental activities (statement 2) $4,109,660 The accompanying notes are an integral part of these financiai statements. IV-7 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS Decembcr 71, 2003 Bwiness•Type Activitia Busineu-Type Activities Maior Entercrise Funds Msior Entemri�e Funds Other Municipal Golf Earle Brown Water Senituy Storm Enterprise Toui Intemal Toul l,iquor Course HeriWte Center Utilitv Sewe� Drsinaae Funds Enterprise Servia Proprietarv Assets: Curtent assels: Cazh and oash equivalen�s 5996,536 561,621 5655,4?9 St,890,755 51,140,100 t914,076 T126,663 f5,985,200 56,901,188 512,886,386 Acwunu receivahle nee 10,357 264,792 294,622 639,925 267,251 9I,689 1,588,6)6 3,493 1,592,131 Specisl atsessmenu receivable 260,9i4 3,124 7,992 272,070 272,070 Prcpaid iums 20,804 8,764 138 118,720 148,026 148,026 Imentories at wst 273,24i 3,560 34.419 27,590 ]40.834 14,832 355,686 I Totalcurtentasseu 1,302,962 63.201 I.163,004 2,474,059 1,921,669 I,189.J19 218,352 8,334,766 6,919.575 15,254,301 Noncunrnt auen: Capilal assels; Land 1,390,402 1,493,)00 23,093 3,389 287,158 3,197,342 3,197,342 Land improvemenu 40,258 )2�,830 368,086 368,088 Buildings and strucwres 487,946 l 1,091,389 3,3J 1,384 2,484,959 17,795,678 17,395,678 Machinery and equipment ?53,003 11,160 45,541 1T8,668 119,130 617,505 5,816,573 6,434,07B Mainsandlina 13,715,130 12.446.383 11,9�9.555 78,14I,066 38,141,068 Totalcapiialsssea 25J,007 1,929,766 12,958,063 17,198,275 15,113,861 12;266,713 0 59,719,681 3,816,573 65,576,254 Less: Allowance Cordeprcciation (106.7)9) (t36,844) (4,072,810) (8,950.594) (6.334,207) (1;329.872) (21,37t,066) (3.376,Y43) (2q,949,309) Net capitel atiuu 146164 1,772,922 B,ABS,231 8,247,661 8.359,654 10,736,841 0 78.748,615 2,4�8,330 40,586.945 Totalnoncurtentaueu 146,264 1,772,922 8,883,253 8,247,681 d.339,654 10.776.841 0 78,748.615 2,238,370 40,586,945 Totslasseu 1,449,226 1,8�8,123 10,048,257 10,721.740 10.481.323 11,926.160 216.352 46,683.381 9,157.865 55,641,246 Liabilitia: CuRent liabilities: Accounts payeble 211,094 1,493 189,238 56,25I 75,676 13,052 I,07I 347,877 11,616 359,693 Deposits payable 170,973 5,050 176,U23 176,62] Aceruedsalaries payable 19,580 2,116 33,337 14,783 3,582 77,598 10,519 88,117 Accrued intercst peyable 10,033 10,033 I0,033 DeCerred rcvenue 19,910 127,995 147,9p5 147,903 Currentponion ollong•term debt 220,000 220,000 220,000 I Advancesfmm othu funde 865.000 885.000 8B5.000 Total curtmt liabilities 270,674 886,811 415.438 204.079 81,258 243.065 1,071 2.064.416 22,335 2.086,7'JI Noncurtent liabilities: Bondspayable 230,000 230,000 230,000 Compenseted absences paysble �g;,22� �g;�ZZ� Accrued health insurance liabiliry 1,547,275 1.547,235 Tatal noncurtent Nabilities 0 0 0 0 0 230.000 0 230,000 2.330,462 2.360.462 Totalliebili�iu 2J0.674 888,81i 413,458 204,079 81.258 473,083 1,071 2,?94,4)6 2.332,791 4,647,233 Net esseu: Invested in capital auen, net of related debt 146,264 1,772,922 8,885,253 6,347,681 8,559,650 f0,28b,801 37,896,615 2,238,330 40,136,945 Unravicted 1.072,288 (823.610) 747,546 2.269,980 1,840,611 1.166,234 217,281 6.490,330 4,566,776 I1.057,066 Toulnetasseu 51.218.532 5949,712 59,632,�99 510.517,661 SIO,A00,263 511.443,073 f217.281 44,388,94i 56,803.068 551.194.013 L- Adjiuunent to re0ect the consolidation of intemal service fund activities related to enterpris¢ funds (25,9981 Net a�sels o[ business•type activities E44,762.947 The accompenying notu ere an inugral part of these financial statemenu. The accompanying notes ere an integrel part of these finencial statemenu. 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 Standaxds 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. SECTION 5. Renortin� of Si�nificant Events. A. 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 taY 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 secuning repayment of the securities; and (11) rating changes. B. Whenever an event listed in Section S.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 af such Occurrence with each National Repository or the MSRB and with the State Depository, if any. i C. The Issuer agrees to provide or cause to be provided, in a timely manner, f 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. SECTION 6. Termination of Renortin� Obli�ation. 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. I1-9 SECTION 7. Dissemination A�ent. 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 dischaxge any such Agent, with or without appointing a successor Dissemination Agent. SECTION 8. 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 r 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. SECTION 9. Additional Information. Nothing in this Disclosure Undertaking shall be deemed to prevent the Issuer from disseminating any other information, usmg the mean s 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. SECTION 10. Default. In the event of a failure of the Issuer to provide information I 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. SECTION 11. Beneficiaries. This Disclosure Undertakin shall inure solely to g 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. SECTION 12. Reserved Ri�hts. The Issuer reserves the right to discontinue y providing any information required under the Rule if a final deternlination 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. II-10 Date: 2004 CITY OF BROOKLYN CENTER, MINNESOTA By Its Mayor BY Its City Manager II-11 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: Munisn,Bloomber�.com httn://www.bloomber�.com/markets/rates/municontacts.html DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 Phone: 201-346-0701 Fa�c: 201-947-0107 Email: nrmsir(�a,dpcdata.com httv://www.dncdata.com FT Interactive Data Attn: NRMSIR 100 William Street New York, NY 10038 Phone: 212-7'71-6999 Fax: 212-771-7390 (Secondary Market Information) Fax: 212-771-7391 (Primary Market Information) Email: NRMSIRna,FTID.com httn://www.interactivedata.com Standard Poor's Securities Evaluations Inc. 55 Water Street 45th Floor New York, NY 10041 Phone: 212-438-4595 F�: 212-438-3975 Email: NRMSIR renositorvn.sandp.com www.iikeenv.com//iikeenv/nser descrin data ren.html This list is current as of the date of issuance of the Bonds. II-12 APPENDIX III SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND MINNESOTA REAL PROPERTY VALUATION (effective through payable 2005 with 2003 Legislative changes incorporated) Following is a summary of certain statutory provisions effective through payable 2005 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. Chapter 21, Laws of Minnesota Special Session 2003-1 was passed by the 2003 Minnesota Legislature and signed by the Governor on June 8, 2003. The enactment of this fegislation caused changes for payable years 2003 and thereafter. These changes are incorporated in the following discussions. 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 2001 to provide for a full phase-out of Limited Market Value, arriving at 100% of the assessor's estimated market value in the 2007 assessment year. Beginning with assessment year 2003, the amount of the increase shall not exceed the greater of (1) 12% of the value in the preceding assessment, or (2) 20% of the difference between the current assessment and the preceding assessment. For assessment year 2004, the amount of the increase shall not exceed the greater of (1) 15% of the value in the preceding assessment, or (2) 25°!0 of the difference between the current assessment and the preceding assessment. For assessment year 2005, the amount of the increase shall not exceed the greater of (1) 15% of the value in the preceding assessment, or (2) 33°l0 of the difference between the current assessment and the preceding assessment. For assessment year 2006, the amount of the increase shall not exceed the greater of (1) 15% of the value in the preceding assessment, or (2) 50% of the difference befinreen the current assessment and the preceding assessment. Indicated Market Value. Because the Estimated Market Value as determined by an assessor may not represent the price of real property in the marketplace, the "Indicated Market Value" is generally regarded as more representative of full value. The Indicated Market Value is determined by dividing the Estimated Market Value of a given year by the same year's sales ratio determined by the State Department of Revenue. The sales ratio represents the overall relationship between the Estimated Market Value of property within the taxing unit and actuaf I setling price. Net Tax Capacitv. The Net Tax Capacity is the value upon which net taxes are levied, extended and collected. The Net Tax Capacity is computed by appiying the class rate percentages specific to each type of property classification against the Estimated 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 Estimated 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, expressed as a percentage. 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 Minnesata 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 properly taxes within the county. Real estate and personal property tax statements are mailed out by March 31. One-hatf (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 coflection year for unpaid real property taxes. 1n the case of the second installment of real property taxes due October 15, the penalty increases to 6°/a 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 clerk of court 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 definquency 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 schoof district 40°l0. Property Tax Credits (Chapter 273, Minnesota Statutes) I 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, homestead and agricultural credit aid (HACA) and disparity reduction aid. HACA has been repealed for cities, school districts, and townships and applies only to counties. l I I-2 Levy Limitations for Counties and Cities (M.S. 275.70 to 275.74) Lery limitations are in effect for property taxes levied in 2003 and payable in 2004 for a!I counties and those cities with populations over 2,500. In calculating levy limits, the starting point is the local governmenYs levy limit base for property taxes payable in 2003, less any unused levy authority, less 40% of the 2004 estimated Local Government Aid (LGA) reduction. Significantly, cities that did not levy to the limit for taxes payable in 2003 are penalized in that their unused levy authority is eliminated. Additionally, cities are authorized to levy to replace only 60% of the 2004 LGA reduction. A referendum to seek an increase over this statutory lery limit, effective for the current levy year, may be held up until the November general election. Certain property tax levies are authorized outside of the new overall levy limitation ("special levies"). Special levies do not include levies for bonded indebtedness on installment payments on conditional sales contracts, state-aid road bonds, contracts for deed, tax increment revenue bonds, and lease payments under certificates of participation. In order to receive approval for any special levy claims outside of the overall levy limitation, requests for such special levies must be submitted to the Property Tax Division of the Department of Revenue on or before September 15th in the year in which the levy is to be made for collection in the following year. The Department of Revenue has the authority to approve, reduce or deny a special levy request. Home-rule charter cities now are authorized to exceed any levy limits and referendum requirements contained in their city charters and increase their property tax levies if such increases are necessary to offset the 2004 LGA reductions. Final adjustments to all levies must be made by the Department of Revenue on or before December 10th. Debt Limitations All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory "net debY' limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the amount remaining 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 follawing: 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. Ilf-3 Levies for General Obligation Debt (Sections 475.61 and 475.74, Minnesota Sta#utes) 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) "Fisca! Disparities Law" The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as "Fiscal Disparities," was first implemented for taxes payable in 1975. �orty 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. (The Balance of This Page Has Been Intentionally Left Blank) Iff-4 STATUTORY FORMULAE: CONVERSION OF ESTIMATED MARKET VALUE (EM� TO NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS 2001 Property Tax Amendments The Omnibus Tax Bill adopted by the Minnesota Legislature during the First Special Session in 2001 (the "Tax Bill") made numerous changes to the property tax system. Among its provisions, the Tax Bill provided for the assumption by the State of Minnesota of the general education property tax levy and certain transit costs; increased the appropriation for Local Government Aids by $140,000,000; re-imposed levy limits for two years on counties and cities over 2,500 in population; repealed the Homestead and Agricultural Credit Aid for cities, school districts and townships; provided for the gradual elimination of Limited Market Valuation; and compressed the class rates applicable to various classes of property. Local Tax Local Tax Local Tax Local Tax Local Tax Payable Payable Payable Payable Payable Propertv Tvpe 2001 2002 2003 2004 2005 Residential Homestead Up t0 $76,000 1.000% 1.000% 1.000% 1.000% 1.000% $76,000 -$500,000 1.650% 1.000% 1.000% 1.000%� 1.000%' Over $500,000 1.650% 1.250% 1.250% 1.250%' 1.250% Residential Non-homestead Single Unit Up to $76,000 1.200% 1.000% 1.000% 1.000% 1.000% $76,000 -$500,000 1.650% 1.000% 1.000% 1.000% 1.000% Ovet' $500,000 1.650% 1.250% 1.250% 1.250% 1.250% 2-3 unit and undeveloped land 1.650% 1.500% 1.250% 1.250% 1.250% Market Rate Apartments Regular 2.400% 1.800% 1.500% 1.250% 1.250% Small City 2.150% 1.800% 1.500% 1.250% 1.250% Low-income 1.000% 0.900% 1.000% Commercial/Industrial/Public Utility Up to $150,000 2.400% 1.500% 1.500% 1.500% 1.500% Over $150,000 3.400% 2.000% 2.000% 2.000% 2.000% Electric Generation Machinery 3.400% 2.000% 2.000% 2.000% 2.000% Seasonal Recreational Commercial Homestead Resorts (1c) Up to $500,000 1.000% 1.000% 1.000% 1.000% 1.000% Over $500,000 1.000% 1.250% 1.250% 1.25�% 1.250% Seasonal Resorts (4c) Up t0 $500,000 1.650% 1.000% 1.000% 1.000% 1.000% Over $500,000 1.650% 1250% 1.250% 1.250% 1.250% Seasonal Recreational Residential Up to $76,000 1.200% 1.000% 1.000% 1.000% 1.000% $76,000 -$500,000 1.650% 1.000% 1.000% 1.000°/n 1_OQO% Over $500,000 1.650% 1.250% 1.250% 1.250% 1.250% Disabled Homestead 0.450% 0.450% 0.450% 0.450% 0.450% Agricultural Land 8� Buildings Homestead Up to $115,000 0.350% 0.550% 0.550% 0.550% 0.550% $115,000 -$600,000 0.800% 0.550% 0.550% 0.550% 0.550% Over $600,000 1.200% 1.000% 1.000% 1.000% 1.000% Non-homestead 1.200% 1.000% 1.000% 1.000% 1.000% Effective 2004 fhere are two c/asses of residential property, up to $500,000 and greater than $500,000. 2 Rate reduced to 1.25% in pay 2003 and thereafter. 3 Rate reduced to 9.5% in pay 2003 and 1.25% in pay 2004 and fhereafter. 4 Rate increased to 1% in pay 2003, classi�cation abolished thereafter. 5 Exempt from referendum market value tax. I I I-5 (This page was left blank intentionally.) I APPENDIX IV EXCERPTS OF 2003 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, 2003. The reader should be aware that the complete audits 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. The Governmental Accounting Standards Board (GASB) issued Statement 34, Basic Financial Statements for State and Local Governments in June 1999. The statement establishes a new financial reporting model for state and local governments and is a major change in public-sector accounting. GASB developed the new requirements to make annual reports more comprehensive and easier to understand and use. The new requirements include government- wide financial statements prepared on the full accrual basis that are in addition to, not instead of, the traditional Fund-Based statements� and an ex anded Bud et Com arison that includes P 9 P the ad opted bud et, final bud et and actual revenues and ex enditures. 9 9 p The City has been awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA) for its comprehensive annual financial report for the year ended December 31, 2002. The Certificate of Achievement is the highest form of recognition for excellence in State and local government financial reporting. The City has received this award every year since 1983. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report (CAFR), whose contents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City believes its CAFR continues to conform to the Certificate of Achievement program requirements and has submitted its CAFR for the 2003 fiscal year to GFOA. IV-1 Tautges Redpath, Ltd. Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT To the Honocsble Mayor and Membe7s of t6e City Coimcil City of Brooklyn Center, Mionesota We have audited the accompanyinB financiai statemrnts of the govemmenta! aaivitia, the business-rype activities. each major fund, and ffie aggregate g fimd info:mation of the City of Brookiyn Cenur, Minaesoca, az of and for the year ended December 3l, 2003 which collectively comprise the Ciry of Brooklyn Crnter, Mi�mesota's basic 5aanciai shtcmeau as listed in the table of contenu. These �Sic financial statemwu arc the responsibility of the City of Brooklyn Ccnur, Mimesota's m�nagemrnt O�u responsibiliry is to express opinions on these bacic financial statcmrntc based on our audit. We conducud our audit in accordance with auditing standards genecally acceptod in the United Staus of America aad the standards applicable to financial audicc contained in Gove �,.,...,,.t Ai�ting Standards, issued by the Compu�olla General of the Uniud States. Those standards cequire that we pian and perfomi the audit to obtain �easonabte assurance about whether the basic financial stauments are free of maurial misstatetnent. An audit includes examining, on a test basis, evidence suppocting the amounu and disclosures in the basic financial statemeats. An audit also inciudes assessing the accounting principles used and si�ificant estimaus made by managemvu, as well as evaluating the overalt Snancial statemrnt p:esentauon. We believe that our audit provides a reasonable basis for our opinions. In o� opiaion, the basic fiaancial staummts mfrnsd w above present fairly, in all matecial respects, the financiai position of the govemmental activitia, the business-type activitia, each major fimd, �d the aggregate remaining fimd information of the City of Brooklyn Crnter, Minnesota, as of December 31, 2003, and the respective changes in financial position and cash flows, where applicabic, thereof for the year ffien ended in confoimity witb accounting principles genetally accepud in the Uni►ed States of Ameiica. As desciibed in Note 17 W the basic financial statemrnts, the City of Brooklyn Center, Minnesota adopted the provisions of Goverammtai Accounting Standards Board Statement No. 33, Accouaring ond Frnancial R.: jor Nonercharrge Tiansacrions, Statement 34, Basic F'inancial Statements and Ma�. Diseussion andAnalysrs —for State ar+d Loca! Governraenu, Statement 36, Recipient Reporting for Certain Shared Nonr�chonge Revertues. Statement 37, Basic Firtancial Statemeriu arrd Man. Discussion a,rd Analysis for State and Loca! Gorernmenu: Omnibus, and Statemrnt 38, Certain Frnancia! Statement Note Disclosures, as of Januery 1, 2003. This rau(tt in a chaage in the focmat and content of the basic financial statemrnts. In accordance with Governmenr Audirieg Standards, we have also issued a repott daud May 27, 2004 on our consideration of the City of Brooklyn Centa, Minnesota's intetaal control over fiaencia3leporting and our usu of iu compliancc with certain provisions of laws, regulations, contracu and ganu. 7Laz report is an integ:at part of an a�it perfoaned in accordance with Goverrement Arrditing Standtvds and should be rcad m eonjunction with t6is report in considering the resutts of our audit. I 'Ihe Mam s Discussion and Analysis and the budgetary informarion as listed in the table of contenu, respectively, aze not a cequired part of thc basic financial statements but aze supplementary infomoarioa requued by the Govemmental Accoimting Standards Boazd. We havc applied certain limited prceedures, which consuted principally of inquiries of management xegarding the methods of._.�,,�....rnt and presentation of the supplementazy infom�ation. However, we did �t audit the infocmation aad express no opinion on it. Our audit was made for the ptttpose of foiming an opinion on the financial statemrnts that collcctively comprise the Ciry of Brooklyn Center, Mimesota's basic financial statemrnu. The introduaory secaon, wmbining and iadividual fimd statements and schedules, supplemeutazy financial infocmation and uatistical inforcnation u lisud in ffie table of contents are prcsenud for purposes of addirional analysis and are �wt a rcquired part of the basic fmancial statemeats. 77te combining and individual fimd statements and uhedules and supplemrntary financia! information hu been subjected to the auditing procedures applied in the audit of the basic financia! state[�ats and, in our opinion, is fairly staud in all material respects, in relarion to the basic financial statements takrn as a wholc. 1'he introductory section and sutistical information have not bern subjected to thc auditing procedvres applied in the audit of the basic finaescial statements and, accordingly, we acpisss rto opinion on them. May 27. 2004 t�,l/� �i�c.� �`.l�'"�f�.� c`d• HLB TAUTGES REDPATH, LTD. Certified Public Accountants �V-2 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF NET ASSETS December 31, 2003 Primary Government Governmental Business-Type Assets: Activities Activities Total Cash and investments $30,34�,476 $�,98�,200 $36,330,676 Receivables: Interest 269,579 269,�79 Accounts 66,099 1,�88,636 1,6�4,735 Delinquent taxes 752,09� 752,095 Special assessments 3,S I2,018 272,070 3,784,088 Internal balances 9I0,998 (910,998) Due from other governments 414,592 414,�92 Prepaid expenses �,309 14$,026 1�3,33� Inventories at cost 14,852 340,834 3»,686 Restricted asseu: Cash and investments 131,153 131,153 Capital assets net 31,739,661 38,348,61� ?0,088,276 Total asseu 68,161,832 45,772,383 113,934,215 Liabilities: Accounts payabie 940,482 547,877 1,488,359 Deposiu payable 176,023 176,023 Due to other governments 56,881 56,881 Accrued salazies and wages 403,59? 77,598 481,195 Accmed health insurance 1,�47,23� 1,547,23� Accrued interest payable 76,538 10,033 86,571 Uneamed revenue 19,»> 147,90� 167,46Q Compensated absences payable: Due within one year 783,22? 783,227 Bonds payable: Due within one year 3,520,000 220,000 3,740,000 Due in more than one year 13,410,000 230,000 13,640,000 Totalliabilities 20,7�7,�1� 1,409,436 22,166,9�1 Net asseu: Invested in capital asseu, net of related debt 14,733,123 37,898,61� 52,631,738 Restricted for: Debt service 8,�154,580 8,454,580 Ta�c increment purposes 6,398,680 6,398,680 Unrestricted 17,817,934 6,464,332 24,282,266 Total net assets $47,404,317 $44,362,947 $91,767,264 The accompanying notes are an integral part of these financial statemenu. N-3 CITY OF BROOKLYN CENTER, MINNESOTA STA"fEMENT OF ACTIVITIES For The Year Ended December 31, 2003 Net(Expense) Revenueand Proaram Revenuu Changes in Net Asu�s Opereting Capital Primary Govemment Chazges For Grants and Grants and Govemmental Business•Typc Expenses Smices Convibutions Contributions Activitiu Activities Totai functions/Proarams Primary govemment Government activi�ies: Generalgovemment 52,565,088 5227,i50 S S (52,337,738) S (52,331,�38) Public sakry 7,184,536 951,518 690,841 (5,342,177) (5,542,177) Publicworks 3,002,223 24,554 424,182 1,079,134 (1,474,353) (1,474,353) Communiry services 225,365 122,502 (IO2,863) (102,863) Parks and recreation 2,169,482 624,294 (1,545,188) (1,545,188) Economic development 1,759,585 389,495 (1,370,090) (1,370,090) Nondepartmrntal 342,142 (342,142) (342,142) Administrative servica reimbursement (607,221) 607,221 607,221 interes� on long•term debt 922,253 (922.253) (922.253) Tolalgovemme�tactiviUes 17,563,453 1,827.116 1.627.020 1,079.134 (13.029.583) 0 (13.029.583) Business-rype activitics: I Municipalliquor 724,897' 853,353 I2B,456 128,456 Golfcourse 290,990 294,149 3,159 3,159 Earle Brown Heritage Center 2,109,166 1,749,202 (339,964) (339,964) Waterutility I,645,955 1,530,592 (115,363) (115,363) Sanitary sewer 2,567,032 2,870,109 303,077 303,0�7 Stormdrainage 838,421 f,264,512 42b,091 426.091 O�her entcryrise (unds 370,972 412,495 41,523 41.523 Total business-rype activities 8.547,433 8,974.412 0 0 0 426,979 426,979 Total primary govemment 526,110,886 510,802.128 51,627,020 51,079,134 _(513,029,583) 5426,979 (512,602.604) Gtneral revenues: Propenyta,ra 510,407,613 S S10,407,613 Tax increment colltclions 3,527,881 3,527,881 Lodging taxa 661,267 661,267 Grants end wntributions not restricted to specific programs 1,413,913 1,413,913 Unrestricted investment eamings 426,329 82,165 508,494 Gain on disposal of fixed asset 13,976 13,976 Other 588,264 241,308 829,372 TransCers 100,000 (100,000) Totalgeneralrevenuesand vansFers t7,t39,243 223,473 17,362.716 Changein netasseu 4,109,660 650,452 4,760,112 Net atsas beginning 43,294,637 43,712,495 8�.007,152 Net assets rnding E 47,404.317 544.362,94� 5 91.767.2 64 The accompanying notes are an integral part of these financial statemenu. The accompanying notes are an integrel part of these financial statements. CITY OF BROOKLYN CENTER, MINNESOTA BAI.ANCE SHEET GOVBRNMENTALFUNDS Dccember l I, 2003 Eulc Browa TIF Specie� ONer Inue• Toul Tlf Distritt Asstssment In@uWttwe Govemmenul Activiry GoremmrnW Au°� General District No.3 Bonds Conswerion Fundi Eliminations FunQs Cazh and invesunents 58,�45,364 561,885 53,085,782 52,963,637 5827,448 f6,364,171 f- 523,444,286 Rteeivables: Inurcst 269,579 Accounts i7,908 ]69,579 a,223 473 62,600 Delinquent Wces 410,9J6 I16.856 172,625 10,266 41,412 752,093 Special assessmen�s 251 I.103.485 406,262 3,512.018 Due from oUer fwds 1,04�,323 118,933 (1,202,256) Due Gom oNer govemmenu J0,074 332,182 52,336 4I4,592 Prepaid e�cpenses 5,309 AdvancatootherPonds 105,074 2.188,078 (1,408,112) 865,000 Ratricted atu�s� Cazh and invesunenu 131.153 131.153 Toulazsets f9.155,648 SI78.142 36,301.730 56,079�88 SI,366,135 58.805.363� (52,610,7681 129,476,636 s Liabilitia and Fund Balances liabilitits�. Auountspayabie f416.963 56.136 17,972 S f191,4pp 5306,195 S 5928.666 Due lo oNer funds Dueioothagovemmenu 1,884 3 7 158.933 (l.202,256) 50,997 56,881 Accrued salaria and weges J78,2B6 658 I,l4) 12,291 ;93,078 Advanca Gom otherfunds 69d.143 709.969 (1.408.112) Dekrtedievenue J41,435 115.850 172,625 3.102,514 435.587 59,309 a,227,520 Totalliabilities I.136,568 1.864.110 182.440 3.102.SIa �.336.956 591.925 (2.610.368) 5.606.Ia3 Fundbdenca� Reserved foc Frepaid items 3.309 3.309 Lonn reeeivable 105,074 2,188,038 Debtservia 2.976.874 2.293,112 Unreserved: 2.344.403 5,321.277 De5i�elcd reporttd ia: Ge�erel Fund 6,031,0)7 Special Revenue Funds 1,769,895 6,031,07J I,769,895 Undesignated reponed in: Geneni Fund 1.873.620 Special Revenue Funds I 685,368 4,349,;95 1,8i5,620 Capiul Projee� Fund� 1,771,097 4.441.124 229.179 1.903.900 2.1�3.019 Tou1 Pond balonces B (1.665,7681 6.119,290 2,97b.674 229,119 8213.438 0 21,870.493 7ote1 liabitities and fwd ba)anas 5 9.155,648 5116,742 56.301.730 56.079,)88 fL 566.133 5 8,805.363 (f2.610.366) 5 29,476.63 8 Fund balance reponed above f23,810,493 Amounts rcponed tor govemmenW activitia in the steumeni of net sssets are diflbrcnt bccausc Capital assers used in govemmental tctivitics are noc finsncial rewurca, and therePorc, are not reported in the Ponds 29,301,3J 1 O�her long•urm azsets ue not avaitable w pay for euamt• period expenditura and, 1hercPore, am deCerted in the funds. 4,207,%5 Long•urm litbilitics, including 6onds payeble, are not due �nd payable in we amen[period and Nerc(orc are not reported in the Ponds. (17,006,336) letemal service Ponds aze used by management �o charge the cost of anein acdviGes ro individual Ponds. The usett and liabilitia are ineluded i� the govemmental swement of net assett 6.831.066 Netusersofgovemmenulaeoviues The acwmD�Ying noms are an inugral pan of these finanoiel statements. The xcompenying rrotes are en inmgnl put of �hese financial s�uements. CITY OF BROOKLYN CENTER. MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTALFUNDS For The Year Ended December 31, 2003 Earie Brown TlF Special Other Inva Total TIF Disvic[ Assasment Infiaswcture Govemmental Activity Governmental Generel District No.3 Bonds Conswction Fundt Eliminations Funds Revenues; Taxcsandspecialassessments E10,799,074 E833,553 52,308,605 SI,li3,044 579,207 5454,858 S• 515,628,341 Licenses and permits 827,685 8?7,683 Intergovernmental 1,908,457 33?,182 I,198,443 3,479,082 Charges Cor servica 678,875 24,554 6,194 709,633 Court fines 290,408 29Q408 Imestment eamings 96,522 4,503 81,399 35,548 10,934 88,843 317,749 Miscellaneous 26I,889 345.693 607,582 Totalrevenues 14,90?,9t0 838,Oi6 2,390,004 I,188,592 446,877 2,094,031 0 21,860,4T0 Expenditures: Curtent: General govemment 2,472,352 2,971 2,415,323 Public safcry 6,254,938 365.543 6,620,481 Public works I,549,325 328,130 236,723 2,114,3�8 Communiry services 91,581 91,581 Parks and rccrcation 2,030,402 2,030,402 Economicdevelopment J16,059 35,969 579,ii9 806,670 1,758,257 NondepartmenWl 331,223 33I,223 Administradve services reimbursement (607,221) (607,221) Capital ouNay: General govemment 25,256 90,224 I 15,480 Public sa(ety 17,9J7 17,937 Publicworks 99,880 1,117,757 491r89 1,708,926 Parks and recreation 37,632 37,632 Nondepertmental 1,385 1,385 Debt xrvice: Principa! retirement 870,000 2,350,000 3,220,000 Interest 242,749 662,769 905,518 Paying agentFees 14,807 11,272 26,079 Total expenditures 12,620,949 55,969 579,559 1,127,556 I,445,887 5.017,46� 0 20,847.381 Revenues over(under)expenditures 2,28I,961 782,087 1,810,443 61,036 (999A10) (2,923.430) 0 lA13.089 Othar financing sources (uses): Bondsissued 1,205,000 1,205,000 Discaunt an debt issued (8,860) (8,860) Sale ofland 73,175 73,175 Transfersin 259,079 480,000 2,964,430 (3,603,509) 100,000 Transfers out (2,194,6i5) (633,000) (548,000) (207,854) 3,603,509 Total other financing sources (uses) l2.194,633) (653,000) (>48.000) 259,079 1.676.140 2.829,751 0 I,369,315 Na inccease (decrease) in fund ba{ance 87,306 129,087 1,262,443 )20, I I S 677,130 (93,679) 0 2,382,404 Fundbalance-lanuary I 7,929,774 (1,814,455) 4,856.845 2,6i6,759 (449,951) 8.307,117 2I,088,089 Fund balance• Decnnber3l 58.017,080 fE1,685,368) 56.II9,290 52996,874 5229,179 E8.213,438 SO S23,870,493 The accompanying nous are an integral part of these financial statemenu. The accompanying notes are an integral pan oCthese financial statementt. CITY OF BROOICLYN CENTER, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS For The Year Ended December 31, 2003 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances total governmental funds (statement 4) $2,382,404 Governmen�tal funds report capital outlays as e.cpenditures. However, in the statement of activities the cost of those asseu is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 323,269 In the statement of activities, only the gain on the sale of capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balance by ihe cost of the capital assets sold. (95,000) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (402,575) The issuance of lona term debt (e.?., 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 govemmental funds. Neither transaction, however, has any effect on net assets. This amount is the net effect of these differences in the treatment of lonb term debt and related items. 2,015,000 Internal service funds aze used by management to charge the cost of certain activities to individual funds. This amount is net revenue attributable to governmental activities. �1�2��82� Accrued interest reported in the statement of activities does not require the use of current financiai resources and, therefore, is not reported as expenditures in jovernmental funds. 9,344 Change in net asseu of governmentai activities (statement 2) $4,109,660 The accompanyin� notes are an integral part of these financial statements. IV-7 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December )1, 2003 Business•Type Activities Business-Type Activities Maior Enterprise FundS Maior Entemrise Funds Other Municipal Golf Earle Brown Water Sanilary Storm Entcrprise Total Intemal To[al Liquor Course Herita�se Center Utility Sewe� Drainage Funds Enterprise Service Proprietary Assets: Cunent azsets: Cash and cash equivalents 5996,i36 561,621 5855,4?9 51,890,755 SI,140,100 E914,076 5126,663 55,985,200 56,901,188 512,886,388 Accountsreceivable-net t0,357 264,792 294,622 659,925 267,251 91,689 1,SB8,636 3,495 1,592,131 Special assessmenu receivable 260,9i4 3,124 7,992 272,070 272,070 Prepaiditems 20,804 8,J64 138 118,720 148,026 I48,026 Inventories at cost 275,245 3,560 34,419 27,390 340,634 14,852 335,686 Totaicurrentassets 1,302,962 6i,201 1,163,004 2.474,059 1,921,869 1,189,319 218.352 8,334,766 6,919,535 15,254.301 Noncurrent assets: Capital asseu: Land 1,390,402 1,493,300 23,093 3,389 287,458 3,197,342 3,197,342 Land improvemenu 40,258 327,830 368,088 J68,088 Buildings and structures 487,946 I1,091,389 3,331,394 2,484,959 17,395,678 17,395,678 Machinery and equipment ?53,003 11,160 45,544 128,668 I'/9,130 617,503 S,Bt6,573 6,434,078 Mainssndlina 13,�15,130 12,446.383 11,979.555 38,141,066 38,141,068 Totalcapiwlassets 253,003 1,929,766 12,958,063 17,198,275 13,113,861 12,266,713 0 59.719,661 5,816,573 65,536,254 Less: Allowancefordeprociation (106,739) (156,844) (4,072,610) (8,950,5941 (6,554,207) (1,529,672) (21,371.066) (3,578,243) (24,949,309) Net capital assets 146,264 1,772,922 8.885,253 8,247,681 8,559,654 10,736,84t 0 38.348,615 2,238,330 40,586,945 Total noncurtent assets 146,264 1,772,922 8,885,253 8,247,681 8,559,654 10,736,841 0 38,348,615 2,238,330 40,586,945 Totalasseu 1,049,226 1,838,1?3 10,048.257 I0.721.740 10,481,523 i1,926.160 218,352 46,683,381 9,157,86i 55,841,246 Liabilities: Curtent liabilities: Accounts payable 211,094 1,495 189,238 56,251 7i,676 I3,052 I,071 547,877 11,816 559,693 Deposits payable 170,973 5,050 176,023 176,023 Accrued salaries payable 19,580 2,316 35,337 14,783 5,582 77,398 10,519 88,117 Accrued intercst payable 10,033 10,033 10,033 peCerred rcvenue 19,910 127,99i 147,9p5 147,903 Currentponion oflong-term debt 220,000 220,000 220,000 Advances from other funds B85.000 885,000 885,000 Total currrnt liabilities 270,674 888,811 415,458 204.079 81,258 243.085 1,071 2,064,436 22,335 2.066,771 Noncurrent liabilitia: Bondspayable 230,000 ?30,000 23�,000 Compensated absences payable 783,227 783,227 Accrued health insurance liabiliry t,i47?35 1,54�,235 Total noncurrent liabilities 0 0 0 0 0 230,000 0 230,000 2,330,462 2,560,462 Totalliabilitia 230.674 888,81i 415.458 204,079 S1,258 473.085 1,071 2,?94,476 2,352,797 4,647,233 Net assets: Invested in capital assets, net of related debt 146,264 1,772,922 8,885,2i3 8,347,681 8,i59,6i4 10,286,841 37,898,6I5 2,238,330 40,136,943 Unratricttd 1,072,286 (823.610) 747,546 2169,980 1,840,611 L166,234 217,281 6,49p,330 4,566,736 11.037.068 Totalnetasseu 51.218,552 5949,312 59,632.799 SIO,il7,661 510.400,265 511,453,07i 5211,281 44,388,943 56,803,068 T51,194,013 Adjustmrnt to retlect the wnsolidation of intemal service Cund acdvities related to enterprisefunds (25,998) Net assets oE business•rype acHvities S44,162,947 The accompanying notes are an integrat part of theu finencial statemenu. The accompanying noces are an integrel part oCthese finencial statements. CI'CY OF BROOKLYN CENTER MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FMANCIAL STATEMEN'IS NOTES TO FINANCIAL STATEMENfS December 31, 2003 December 31, 2003 E. CASH AND INVESTMENTS GOVF,RNMENT-Wf�E FINANCIAL STATEMENTS The Ciry raognizes properry tax revenue in the period for which the tazes were levied. Cash balances from all funds are combined and invested to the extent available fn cenificates of Uncollectible property taxes are not material and have not been reported. deposit, U.S. govemment ucurities and other securities authorized by State Statute. Inveslment COVERNMENTAL FI1ND FMANCIAL STaTEMENTS income is allocated ro the rcspective tunds on the basis of applicable cash balance panicipation by The City mcognizes property tax revenue when it becomes both measurable and available to each fund. Invesmients are stated at fair value, based upon quoted market prices as of the balance finance expenditures of the curtent period. In practice, curtent and delinquent taxes and State sheet date, Investment income is accrued at the balance sheet date, crediu raeived by the Ciry in July, Decembet and January ere recognized as revenue for the The Ciry provides temporary advances to funds that have insufficient cash balances by means of current year. Taxes collected by the Counry by December 31(remitted to the Ciry the Collowing an advance from another fund shown as interfund receivables in the advancing fund, and an lanuary) and taxes and credits not received at the year end are classified as delinquent and due interfund payable in the fwd with the deficit, until adequate resources are received. These from County taxes receivable. The portion of delinquent ta�ces not collected by the Ciry in interfund balances are eliminated on the govemment•wide financial statements. lanuary are fuliy ot1'set by deferted revenue baause they are not available to flnance curtent expendihves. For purposes of the statement of cash flows the Ciry considers all high�y Hquid investments with a maturiry of three months or less when purchased to be cash equivalents. All of the cash and H. MARKET VAI,UE HOMESl'EAD CREDIT investments allocated to the proprietary funds have original maturities of 90 days or las. Therefore the entire balance in the Proprietary Funds are considered cash equivalents. Property taxes on residential agricultural homestead properry (as defined by Sate Statutes) are partial ly reduced by market value homestead credit (MVHC). This crodit is paid to the Ciry by F. RECEIVABLES AND PAYABLES the State in lieu of taxes levied against homesuad properry. 'the State remits lhis credit through installmens each year. Tha credit is recognized as revenue by the Ciry at the time of collection. The City has rewrded this with property tau revenue. During the course of operations, numerous transactions acur behveen individual funds for goods I provided or services rendered. Short-term interfund loans are clusified aa "interfund I receivables/payables." All short-term interCund receivables and payables at December 31, 2003 i. SPECIAI. ASSESSMENT REVENUE RECOGNITION aze planned to be e�iminated tn 2004. Long-term interPond loans are clusified u"interCund loan reeeivableJpayable." Any residual balances ouutanding benreen the govemmental activities and Special assessments are levied against benefited properties for the cost or a portion of the cost of business-rype activities ere reponed in the govemment•wide ftnancial statements as "intemal special assessment improvement projecu in accordance with State Statutes. These assessmentt balances:' are wllecdble by the Ciry over a tem� of years usually consistent with the term ofthe rolated bond issue. Collection of annual insWllmenls.(including interest) is handled by the Counry Auditw in Property taxes and special azsessments have been rcported net of estimated uncollectible accountt. the same manner aa property taxes. Properry owntts are allowed to (and often do) prepay future (See Note I G and 1) Because utiliry bills are considered liens on propecty, no estimated installments without incerest or prepaymrnt penalties. unwllectible amounu are established. Uncollectible amounts are not material for other receivables and have not bcen reported. Once a special auessment roll is adopted, the amount attributed to each parcel is a lien upon that property until tull payment is made or the amount is detecmined to be excessive by the Ciry G. PROPERTY TAX REVENUE RECOGNITION Cowcit or court action. [f special assessments ere allowed to go delinquent, the property is subject to tax forfeit sale. Proceedi of sales from Wc forfeit properties are allocated flrst to the The Ciry Council annually adopts a tax levy and cettifies it ro the Counry in December County's costs of administering ell tex Forfeit properties. Punuant to State SWtutes, a property le lassessment date of each ear for collection in the followin shall be subjeat to a tau forfeit sale after three years unless it is homesteaded, agricultural or �"Y Y g year. The Counry is seasonal recreational land in which event the property is subject to such sale after five years. responsible for biiling and collecting all property taues for itself, the City, the local Schoal District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as rcceivables by the Ciry at that date. Real property taxes are payable (by property ownen} on May GOVERNMENT-W IDE FMAN(71AL STATEMENTS I S and October t S of each calendar year. Personal properry tares are payable by taxpayers on The City recognizes special �ssessment revenue in the period that the assessment rol! was adopted February 28 and June 30 of each year. These taues are wllected by the Counry and remitted to by the Ciry Cowcil. Uncollectible special assessments are not materiel end have not been the Ciry on or before July 7 and December 2 of the same year. Delinquent collections for reported. November and December are received the following January. The Ciry has no ability ro enforce payment of property taxes by property owners. The County possesses this authoriry. ;p re�� CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS NOTES TO FtNANCIAL STATEMENTS December31,2003 December31,2003 r COVERNMEMAL FUNp FINpNCI�. STATF.MENTS Properry, plant and equipment of the primary govemment, as well as the component units, is Revenue Bom special usessments is recognized by the City when it becomes meaturable and depreciated using the svaight line method over the following estimated usePol lives: available �o finance expenditures of the curtent fiscal period. In practice, curtent and delinquent special assessments received by the Ciry are recognized as rovenue for the curtrnt year. Special Paved streets 25 years assessments that are collected by the Counry by December 31 (romined to the Ciry the following Water and sewer mains and lines gg y�g January) and are also recognized as revenue for the wvent year. Al! mmaining delinqumt, Buildings and structures Z5 Y deferted and special deferred assessments receivabie in govemmental funding are compietety Wahr wells and storage tanks 25 years ofCset by defened revenues. Sewer lifl stations 25 years Street lighu and traffic ligh�s 15 years J. INVENTORIES Machinery and equipment 5-]5 years Departrnental equipment 5 yeazs GOVERN[„1gN7'pL FUNDS The primary gavernment dces not maintain material amounu of inventory within tha other M. COMPENSATED ABSENCES governmental Ponds Invenrories of govemmental funds are recorded as expenditures when consumed rather than when purchased. It is the City's poiicy to permit employea to accumulate eamed but unused vacation and sick pay PROPRIFTARY FUNDS benefits. AII vacation pay is accrued in the intemal service fund financial statements. A liability for thae amounu is reported in govemmental tLnds only if they have matured, for exarnple, ac a Inventories in the proprietary funds are valued at wst, using the weighted average method in the resui� of employee resignations and rctircments. In aocordance with the provisions�of Statement Municipal Liquar Fund and the first-in/first-out (FIFO) method in the other proprietary funds. of Government Accounting Standards No. 16, Accountin (11 The costs of govemmental fund type supplies are recorded as expenditures when purchazed. gjor CompensaJed Absences,�no liability is raorded for nonvesting accumulating rights to reeeive sick pay benefiLS. However, a liabiliry is recognized for that portion of aocumulating sick leave benefitt that is vested as severance pay. K. PREpp[D ITEMS Cerlain payments to vendors rettect costs applicable to future accountin N. LONG-TERM OBLIGAT[ONS as prepaid items in both govemmenbwide and fund financial statements. periods and are recorded In the govemmenawide financiai statements and proprietary fund rypes in the fund financial statemenu, long-term debt and other long-term obligations are reported as liabilities in the L. CAPITAL ASSETS applicable govemmental activities, basiness-rype activitia, or proprietary fund type statement of net aueb. Bond premiums and discourtts, aa weff as issuence costs, ere immaterial and are CapiW) assets, which include rp expensed in the year of bond issuance. P Peny, p�ant, equipment and infrastructure atset5 (e.g., roads, bridges, sidewalks, and similar items), are reponed in the applicable govemmental or business- [n the fund finenciai statements, ovemmental fund rype activities columns in the govemment-wide financial statements. Capital assets are defined b g tyPes recognize bond premiums and Y discounts, az well as bond issuance costs, during the cuRent period. The face amount of debt ihe govemment as assets with an initial, individual cost of more than $5,000 (amount not rounded) issued is reported es other 8nancing sources. Premiums received on debt issuances are reported end an estimated useful life in excess ofone year. Such asse�s are recorded at historical cost or as other tinancing sources while discounts on debt issuances are reported az other financing uses. estimated hismrical wst if purchased or constructed. Donated capital azsets are recorded az Issuance wsts, whether or not withheld Rom the acNal dtbt proceeds received, are reported as estimated fair market value at the date of donation. debt service expenditures. The costs of normal mainrenance and repairs that do not add to the value of the azset or materially extend asseu lives are not capitalized. O. FUND EQUITY Major outlays for capiWl assets and improvements aze capitalized as projects are constructed. In the tUnd financial statements, govemmmtal funds report reservations of fund balance for Interest incurted during the conswction phase of capital assets of business•type activities is included as part of the capiwlized value of the asseu consweted. For the year ended December amounts not appropriable for expenditure or legally segregated for a speci6c tuture use. 31. 2003, no interest waz capiralized in connection with conswction in progress. Designated fund balances represent tenutive plans for future use of financial resowces. CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYIV CENTER, MINNESOTA NOTES TO FINANCInL STATEMENTS NOTES TO fINANCIAL STATEt�NTS December 31, 2003 December 31, 2003 i Nnte I S1IMMARV AF SIGNIF►CANT ACCOUNTING PnL7CtF4 Loeis Insuranee Cm� This group provides cooperative purchasing of health and Iife insurance benefits Cor The Ciry of Hrooklyn Crnter, Minnesota (the Ciry) was formed and operata pursuant to applicabfe approximately 45 governmental entities. The total of 2003 health and life insurance costs paid by Minnesota Iaws and statutes. The goveming body consists of a mayor and four City Council members the City was 3890,059. Complete financial statements may be obtained from Stanton Group elected at-large to serve four-year staggered terms. located at 3405 Annapolis Lane, Plymouth, Minnesota 55447. OTHER A. FINpNC1AL REPORTINC ENTITY The Aronkivn Cente.r Fire Deeartment Relief Ascnciation lthe Assncia[ionl The Association is organized as a nonprofit organization, legally separate from the Ciry, by its As required by accowting principies general ly accepted in the United States of America, the members to provide pension and other benefits to such members in acwrdance with Minnesota Ciry's financial statements include all funds and departments of the City and the Ciry•s component Statutes. [ts boazd of directors is elected by the membership of the Association and not by the units. The component units discussed below are included in the Ciry's reporting entiry becaute of City Council. The Association issues its own set of financial statemenss. All funding is the significance af their operational or financia� relationship with the Ciry. conducted in accordance with applicable Minnesota Statutes, whereby sWte aids flow to the Association, tax levies are detertnined by the qssociation end are only reviewed by the Ciry. The BLENDED CObiPONENT UNITS Assxiation pays benefits directfy to its members. The AssceiaHon may certify tax levies to Blended tomponent units, although legally separate, are in substance, part of the govemment's Hennepin County directly if the City does not carry out this function. Becaute the Association is operations; data from these uniu are combined with data of the primary govemment. fiscally independent of the City, the financial information of the Association haz not been included within ihe Ciry's tinancia! sWtements. (Sa Note 15C fqr disclosurcs rolating to the These additional units are the Economic Development Authority (EDA) and the Housing and pension plan operated by the Association:) The City's portion of the costs of the Assaiation's C Redevelopment Authoriry (HRA) in and for the Ciry of Brookiyn Center. pension benefits is included in the General Fund under public safery. Complete financial statements for the Association may be obtained at the City ofTices located at 6301 Shingie Creek 1 The goveming board for each Authoriry is the City Council. The Council reviews and appraves Pazkway, Brooklyn Center, Minnesota 55430. the HRA tax lery and the Ciry provides major community development financing for EDA and HRA activities. DebLC issued for EDA and HRA activities are Ciry general obligations, qlthough the EDA and HRA are legally separate from the Ciry, they are reponed az part of the City because B. GOVERNMENT-WIDE AND EUND RINANCIAI, STATEMENTS the goveming boards are the same. Comptete financial statements for the EDA and HRA may be obtained at the City offices locared at 6301 Shingle Creek Parkway, Brookiyn Center, MinnesoW The government-wide financial statements (i.e., the statement of net assets and the statement of 55430 changes in net assets) report infortnation on all of the nonfiduciary activities of the primary government and its component units. For the most part, the eftbct of interfund activity has been JO1NT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS removed from these statements. Governm¢ntalactiviries, which normally aze supported by taxes The City haz several agreementc with other entities that provide reduced costs, better service, and and intergovemmentat revenues, are reportEd separately from business-type activiriea, which rely additional benefiu to the participants. The programs in which the Ciry panicipates are listed to a signifcant extent on fees and charges for support. bebw and arnounu recorded within the curtent year's financial stateme�ts aze disclosed. The statement of activities demonstrstes the degree to which the direct expe�ues of a given l.ocal Covemmr.nt information Svsrems Association !LO(iIS� funMion or business-type acdviry are offset by program revenues. Direct expenses are those that This consonium of approximately 30 government entities provides computerized data processing are clearly identiftable with a speciHc function or business-rype activiry. Prog�om revenues and suppoct services to its members. LOGIS is legally scparate; the Ciry does not appoint a voting include 1) charges to customers or applicants who purofi use, or directly benefit from goods, majoriry of its board, and the Conaortium is fiscaily independent of the Ciry. The total amount services, or privileges ptovided by a given Cunctlon or business-rype activity and 2) grants and recorded within the 2003 financial sWtements of the City is 5439,311 for general services contributions that are restricted to meeHng the operational or capital requirements of a pazticular provided, plus 5253,938 in police software application upgrades allocated to the vazious funds function or business rype activiry. Taxes and other items not included among program revenues bazed on applications and/or use of services. Complete financiat sWtemenLS may be obtalned at ere reported instead at genera( reve�rues. the LOGIS offices located at 5750 Duluth Street, Gofden Valley, Minnesota 55422. Sepazate financial statemenCS are provided for govemmental funds and proprietary funds. Major individual govemmenta! funds and major individual enterprise funds are reported az separate colamns in the fund financial statemenu. i CITY OF BROOKLYIV CEIYTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL SYATEMENTS NOTES TO FMANCIAL STATEMENTS December 31, 2003 December 31, 2003 C. h1EASUREMENT FOCUS, BAS/S OF ACCOUNTING, AND FINANCIAL STATEMENT The /nfrarnucturs Consmrcrion Copita! Projects Fund was established ro account for the PRESEIVTATIOIV resources and expenditura required for the acquisiHon and construction of capitai facilities or improvements financed wholly or in part by special assessments levied against benefiteA The govemment-wide financial statements are reported using the econamic resources properties. measurement jocxs and ihe accrua! basis ojaccounring, as are the Proprie[ary Fwd flnanc[al The govemment reports the following major proprietary funds: sWtements. Revenues are recorded when earned and expensa are retorded when a liabilily is incuaed, regardless of the timing of related cash flows. Property taces are recogniud as revenues The Munmipa/ Liquor Fund accounts for the operations of the City's municipal off•sale in the year for which they are levied. Grants and similar items are recognized as revenue as soon liquor srores. as all eligibility requiremenu imposed by the provider have been met. The GoljCourse Fund aecounts for operations of Centerbrook Golf Course, a 9 hole par 3 Govemmmtal fund financisl starements are reported using th� cumentfinanclal �esources oourse owned by the City. measuremenrjocus and the modifred accrupl basis ojeccounting. Revenues are recognized as soon as they are both meuurable and available. Revenues are considered to be avallab(e when The 6arte Brown He�irage Center Fund accounts for the operation of a convention center. they are collectible within the current period or soon enough therea8er to pay I labiif�ies of the The Earle Brown Neritage Center is a pioneer farmstead that has been historically pceserved current period. For this purpose, the govemment considers all revenues, except �eim6ursement and restored as a modem multipurpose faciiiry. (ts convention center can host conferences, grants, to be evailable if they are coliected within 60 days of the end of the current fiscal period. hade shows, a�d conceAS seating 1,000 peaple in either banquet or theater style. The faciliry Reimbursement grants are considered available if they are collected within one year of the end of hosts many meetings, parties, weddings and receptions. the curtent fiscal period. Expenditures generally are recorded when a liabiliry is incurred, as under accrual accounting. However, debl service expendiwres, az well az expenditures related to The Warer Urifity Fund accountc for the provision of warer to customers. AdministraUOn, C compensated absences and claims and judgments, are recorded only when payment is due. wells, water storage, and distribution are included. N Property taxes, special azsessmenu, intergovemmental revenues, charges for services and interest The Sanitary Se�ver Fund accountt for the collection and pumping of sanitary sewage associated with the wnent Bscal period are all considered to be susceptible to accrual and so have I through a system of sewer Ifnes and lift sWtions. Sewage is treated by the Metropolitan been recognized as revenues of ihe curtent fiscal period. Only the portion of specia� acsessments Council Environmental Services whose fees represent about 75%of this'fund's axpenses. receivable due within the curtent flscal period is considered to be susceptible to accrual as revenue of the curtent period. All other revenue items are considered to be measureble and available only The Storm Orainage Fund accounts for the operations and improvements of the storm water when cash is received by the govemment. drainage system. It incorporates not only the storm sewer system, but also water structures The govemment reports the following major governmental funds: such aa holding pands and facilities to improve water quality. Fces are based upon the amount of water running off a property and vary with both size and absorption characteristics of the parcel. The Generaf Fund is the government's primary operating fund. It accounts for aU fnancial resources of the general govemment, except those required to be accounted for in anolher priVate-sector standards of accounting and finanetal reporting issued prior to December 1, 1989, fund, generally are followed in both the govemment•wide and proprietary-fund �nancial statements to the entent that those standards do not conflict with ar contradtct guidance of the Govemmental The Earle Brosvn TIFD7strict Specia( Revenue Fund has the authority to wllect tax pecounting Standards Board. Govemments also have the option of foliowing subsequent private- increments which are used for the historic restoration of the Earle Brown Fartn and for debt sector guidance for their business-rype activities and enterprise funds, subject to this same service paymenu of bonds which were issued for the same purpose. Iimitation. The govemment has elected not to follow subsequent private-sector guidance. Th¢ T/F District No. 3 Speciaf Revertue Fund has the authoriry to collect tax incrcments As a general rule the effect of interfund acNvity haz been eliminated from the govemment-wide which are used for various redevelopment projects within the City and for debt service financial statements. Exceptions to this generel �ule are uansactions that would be treated as payments of bonds which were issued for the same purposa revenues, expenditures or expenses if they involved extemai organi7ations, such as buying goods The Spectal Asaessment Bonds Debt Service Fund is used to account for the accumulation of and services or paymenu in lieu of taxes, are similazly treated when they involve other funds of resources for the payment of special assessment bonds. These bonds were sold to finance tho City of Brookiyn Center. Elimination of these charges would distort the direct costs and certain public improvements such as rcsidential strats and storm sewers or the provision of program revenues reported for the various functions concemed. services which are to be paid for wholly or in part from special assessments levied against benefited property. CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December )1, 2003 Business•Type Activities Business-Type Activities Maior Enterprise FundS Maior Entemrise Funds Other Municipal Golf Earle Brown Water Sanilary Storm Entcrprise Total Intemal To[al Liquor Course Herita�se Center Utility Sewe� Drainage Funds Enterprise Service Proprietary Assets: Cunent azsets: Cash and cash equivalents 5996,i36 561,621 5855,4?9 51,890,755 SI,140,100 E914,076 5126,663 55,985,200 56,901,188 512,886,388 Accountsreceivable-net t0,357 264,792 294,622 659,925 267,251 91,689 1,SB8,636 3,495 1,592,131 Special assessmenu receivable 260,9i4 3,124 7,992 272,070 272,070 Prepaiditems 20,804 8,J64 138 118,720 148,026 I48,026 Inventories at cost 275,245 3,560 34,419 27,390 340,634 14,852 335,686 Totaicurrentassets 1,302,962 6i,201 1,163,004 2.474,059 1,921,869 1,189,319 218.352 8,334,766 6,919,535 15,254.301 Noncurrent assets: Capital asseu: Land 1,390,402 1,493,300 23,093 3,389 287,458 3,197,342 3,197,342 Land improvemenu 40,258 327,830 368,088 J68,088 Buildings and structures 487,946 I1,091,389 3,331,394 2,484,959 17,395,678 17,395,678 Machinery and equipment ?53,003 11,160 45,544 128,668 I'/9,130 617,503 S,Bt6,573 6,434,078 Mainssndlina 13,�15,130 12,446.383 11,979.555 38,141,066 38,141,068 Totalcapiwlassets 253,003 1,929,766 12,958,063 17,198,275 13,113,861 12,266,713 0 59.719,661 5,816,573 65,536,254 Less: Allowancefordeprociation (106,739) (156,844) (4,072,610) (8,950,5941 (6,554,207) (1,529,672) (21,371.066) (3,578,243) (24,949,309) Net capital assets 146,264 1,772,922 8.885,253 8,247,681 8,559,654 10,736,84t 0 38.348,615 2,238,330 40,586,945 Total noncurtent assets 146,264 1,772,922 8,885,253 8,247,681 8,559,654 10,736,841 0 38,348,615 2,238,330 40,586,945 Totalasseu 1,049,226 1,838,1?3 10,048.257 I0.721.740 10,481,523 i1,926.160 218,352 46,683,381 9,157,86i 55,841,246 Liabilities: Curtent liabilities: Accounts payable 211,094 1,495 189,238 56,251 7i,676 I3,052 I,071 547,877 11,816 559,693 Deposits payable 170,973 5,050 176,023 176,023 Accrued salaries payable 19,580 2,316 35,337 14,783 5,582 77,398 10,519 88,117 Accrued intercst payable 10,033 10,033 10,033 peCerred rcvenue 19,910 127,99i 147,9p5 147,903 Currentponion oflong-term debt 220,000 220,000 220,000 Advances from other funds B85.000 885,000 885,000 Total currrnt liabilities 270,674 888,811 415,458 204.079 81,258 243.085 1,071 2,064,436 22,335 2.066,771 Noncurrent liabilitia: Bondspayable 230,000 ?30,000 23�,000 Compensated absences payable 783,227 783,227 Accrued health insurance liabiliry t,i47?35 1,54�,235 Total noncurrent liabilities 0 0 0 0 0 230,000 0 230,000 2,330,462 2,560,462 Totalliabilitia 230.674 888,81i 415.458 204,079 S1,258 473.085 1,071 2,?94,476 2,352,797 4,647,233 Net assets: Invested in capital assets, net of related debt 146,264 1,772,922 8,885,2i3 8,347,681 8,i59,6i4 10,286,841 37,898,6I5 2,238,330 40,136,943 Unratricttd 1,072,286 (823.610) 747,546 2169,980 1,840,611 L166,234 217,281 6,49p,330 4,566,736 11.037.068 Totalnetasseu 51.218,552 5949,312 59,632.799 SIO,il7,661 510.400,265 511,453,07i 5211,281 44,388,943 56,803,068 T51,194,013 Adjustmrnt to retlect the wnsolidation of intemal service Cund acdvities related to enterprisefunds (25,998) Net assets oE business•rype acHvities S44,162,947 The accompanying notes are an integrat part of theu finencial statemenu. The accompanying noces are an integrel part oCthese finencial statements. CITY OF BROOKLYN CENTER. MINNESOTA STA'fEMENT OF EtEVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended December 3l, ?003 Business•Type Activities Business-Type Activities Major Entemrise Funds Major Enterprise Funds Other Total biunicipat Golf Earte Brown Water Sanitary Storm Enterprise intra Activity Enterprise Intemai Total Liquor Course HeritaQe Center Utility Sewer Draina¢e Funds Eliminntion Funds Service Proprie�ary Opereting revenues: Salesand userfaes 57,407,990 E?94,149 57,393,8I0 SI,i30,592 52,870,109 51,264,512 5412,495 S- S13,I�3,657 S1,O17,718 514,191,375 Costofsales 2,554,637 1,644,608 4,199,245 4,t99,245 Total operating revenues 853,353 294.149 1,749,202 1,530,592 2,870,109 1,264,512 412,495 0 8,974,412 1,017,7I8 9,992,130 Operating expenses: Personal services 381,227 126,866 $12,146 349,356 113,898 1,783,693 331,517 2,115,210 Supplies 25,669 19,301 90,368 116,272 7,640 3,861 961 264,272 191,490 457,762 Other services 116,784 88,494 340,30I 39i,397 I,926,i02 290,369 235,653 3,395,502 IAS,416 3,540,920 (nsurence 6,997 8,002 30,672 8,931 3,88} l,292 964 60,761 42,561 103,322 Utilities 12,636 17,208 137,339 121,400 22,978 133,394 464,955 2,71) 467,668 Rent 144,499 104,776 249,275 249,275 Deprecietion 35,580 2�,912 571,632 648,115 479,323 513,608 2.276J70 596,102 2,872,872 TatalaperatingexPense% 723,392 287.983 2,107,236 1,639,691 2.556.224 809,130 370,972 0 8.494,628 1,312,40I 9,807,029 Operatingincome(loss) 1?9,961 6,�66 (358,034) (109,099) �13,883 455,382 41,523 0 479,784 (294,683) I85,101 Nonoperating revenues (expenses): (nvestmenteamings 14,936 1,048 12,521 22,334 I8,925 10,237 2,144 82,16i 108,580 190,745 Special assessmenu 24,273 2d7 112 �S4 136.776 136,776 Gain (loss on sate of fixed asset �5,8�1 35,801 Otherrevenue 7,116 253 82 108 58,183 26,363 12,4?7 104,532 1,522 106,054 Inurest and fiscal agent fees (9721 (24.835) (26.807) (26,807) Totsinonoperatingrevenues(expensu) 22,072 l,)01 I1,631 46.717 77,35i 123,019 14,571 0 296,666 145,903 442,569 Income (loss) before contributions and transfers 152,033 7,467 (346,401) (62,382) 391,240 378,401 36,094 0 776,4i0 (148,780) 627,670 TransCers: TransCer ro Cepital Project funds U00,000) (l00,000) (IOp,ppp) Change in net esstts 52,033 7,467 (]46,403) (62,382) 391,240 578,401 56,094 0 676,450 (148,780) 527,670 Netacsets•January 1 1,166,319 941,84i 9.979,202 10,580,043 10,009,023 l0,874,674 161.187 43,712,495 6,953,848 50,666,343 Netassets• December3l E1,218,i5: f949,712 59.632,'749 E10,517.661 510,400,265 511,4i3,075 E217,281 SO 544,388,943 56,80i SS1,194,013 The accompanying notes are an integrai part of these financial statemenrs. The accompanying notes are an integral pan of these financial statements. C[TY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2003 Business•Tyce Activities Business-Type Aaivities Maior Enterprise funds Maior Enterorise Funds Other To�al Municipal Golf Earle Brown Water Sanitary Stortn Enterprise Enterprise tntemal Total Liquor Course Heritage Center Utility Sewer Drainage Funds Funds Service Proprietary Cash flows Gom operating activities: ReceiptsGomcus�omersandusers S3,4i0,878 5294,149 53,312,614 EI,535,381 52,821,168 E1,268,815 5409,638 S13,I12,643 S- S13,I12,643 Receip[s from interfund services provided 1,023,4AI 1,023,44t Paymentstosuppiiers (2,800,86>) ((29,230) (2,331,407) (597,635) (1,910,329) (287.636) (382,408) (8,439,510) (428,029) (8,867,539) Paymentstoemployea (377,522) (126,680) (803,938) (343,086) (113,i36) (1,766,962) (224,235} (1,941,191) Miscellaneousrevenue 7,116 253 (5,745) 15,537 50,862 134,533 11,571 2i4,147 (3,987) 208,160 Net cash flows from operating activities 279.607 38,292 171,3?4 628.197 848,185 l,l 1i,712 38,801 3.120,318 365,190 3,485,508 Cash flows from noncapital f nancing activities: Principal paymentson advance (I5,000) (I5,000) (IS,000) Tranafen out (100,000) (100,000) (100,000) Net cash flows from noncapital financing activitia (100,000) (15,000) 0 0 0 0 0 (115,000) 0 (115,000) Cazh flows from capital and related financing activities: Acquisitionandconswctionofcapitalacuts (309,9J0) (416,�42) (323,343) (1,050,015) (130,082) (1,180,097) Principal paid on revenue bonds (210,0�0) (210,000) (2I0,000) Interest paid on revenue bonds l25,833) (25,835) (25,835) Net cash flows from capi�al and related financial activities 0 0 0 (309,930) (4i6,742) (559,178) 0 (1,265,850) (t30,082) (1,4I5,932) j O Cash flows from invating activities lnterest on invutments 13,9�6 1.048 17,776 31,180 26.473 14.321 3.000 108,354 151,890 260.24d Netcashflowsfrominvestingactiviues IA,956 1,048 �7.776 31,180 26,473 14,321 3,000 108,3i4 151,890 260,244 Net increaze in cash and cazh equivalen�s 194,563 24,340 I86,900 349,44) 437,916 570,655 41,801 1,827,822 386,998 2,214,820 Cash end cash equivalents lanuary 1 801,99J 37,281 666,529 I.SS1.�08 682.184 343,221 84,862 4,1 i7,378 6,514,190 10,671,568 Cashandcashequivalents•December3l 5996,556 S61,621 S85S.429 51.890,7i5 51.140,100 5914,076 5126,663 55,98i,200 56.901,188 512,886,388 Reconciliation of opereting income to net cath T provided (used) by apereting activitiu: Operatingincome(loss) 5129,961 56,166 (5358,034) (5109,099) S313,885 E455,382 E41,523 5479,T84 (5294,683) 5185,101 Adjusunenls to reconcile operati�g income (loss) to net cash tlows from opereting activities: Depreciation 35,580 27,912 571,632 648,I1i 479,323 313,608 2?76,170 396,702 2,872,872 Changes in assets and liabilities: Decrcase(increace) in receivables 47,154 (77,196) 28,408 (59,593) 4,303 (2,837) (59,781) 5,723 (54,058) Decrease (increaae) in inventories 3,9i8 3,809 (7,669) (3,481) (3,383) 609 (2,774) Decrease (increaze) in prepeid expenses (8,224) 3,669 (13S) 10,632 5,959 5,939 increasc (decreese) in payabtes 60,357 166 18,349 7?,978 i2,674 12,436 (1 t,436) 165,524 60,026 225,550 Increace{decrease)in accrued expenses 3.705 (14) 8,208 d,470 362 (4,i50) 12,181 2,800 �4,981 Inercase (decrease) in accrued deferted revenue 18,310 11,407 ?9,719 29,7 V Othernonoperatingincome 7.I16 233 (5,745) 13,537 50.882 134,533 11.571 214,147 (5,987) 208,160 Totaladjusunenu 149,646 32.126 529,558 737;?96 534,300 660,330 (2,722) 2,640,534 659,873 3,300.40� Netcash provided by operating activities 52�9,607 E38,292 f171,524 5628.197 5848,185 51,115,712 538.801 53,120,318 5365,190 53,483,508 The accompanying notes are an integral part of thae financial statements, The eccompanying notes are an integrel part o(these financial statements. CITY OF BROOKLYN CENTER. MINNESOTA STA'fEMENT OF EtEVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended December 3l, ?003 Business•Type Activities Business-Type Activities Major Entemrise Funds Major Enterprise Funds Other Total biunicipat Golf Earte Brown Water Sanitary Storm Enterprise intra Activity Enterprise Intemai Total Liquor Course HeritaQe Center Utility Sewer Draina¢e Funds Eliminntion Funds Service Proprie�ary Opereting revenues: Salesand userfaes 57,407,990 E?94,149 57,393,8I0 SI,i30,592 52,870,109 51,264,512 5412,495 S- S13,I�3,657 S1,O17,718 514,191,375 Costofsales 2,554,637 1,644,608 4,199,245 4,t99,245 Total operating revenues 853,353 294.149 1,749,202 1,530,592 2,870,109 1,264,512 412,495 0 8,974,412 1,017,7I8 9,992,130 Operating expenses: Personal services 381,227 126,866 $12,146 349,356 113,898 1,783,693 331,517 2,115,210 Supplies 25,669 19,301 90,368 116,272 7,640 3,861 961 264,272 191,490 457,762 Other services 116,784 88,494 340,30I 39i,397 I,926,i02 290,369 235,653 3,395,502 IAS,416 3,540,920 (nsurence 6,997 8,002 30,672 8,931 3,88} l,292 964 60,761 42,561 103,322 Utilities 12,636 17,208 137,339 121,400 22,978 133,394 464,955 2,71) 467,668 Rent 144,499 104,776 249,275 249,275 Deprecietion 35,580 2�,912 571,632 648,115 479,323 513,608 2.276J70 596,102 2,872,872 TatalaperatingexPense% 723,392 287.983 2,107,236 1,639,691 2.556.224 809,130 370,972 0 8.494,628 1,312,40I 9,807,029 Operatingincome(loss) 1?9,961 6,�66 (358,034) (109,099) �13,883 455,382 41,523 0 479,784 (294,683) I85,101 Nonoperating revenues (expenses): (nvestmenteamings 14,936 1,048 12,521 22,334 I8,925 10,237 2,144 82,16i 108,580 190,745 Special assessmenu 24,273 2d7 112 �S4 136.776 136,776 Gain (loss on sate of fixed asset �5,8�1 35,801 Otherrevenue 7,116 253 82 108 58,183 26,363 12,4?7 104,532 1,522 106,054 Inurest and fiscal agent fees (9721 (24.835) (26.807) (26,807) Totsinonoperatingrevenues(expensu) 22,072 l,)01 I1,631 46.717 77,35i 123,019 14,571 0 296,666 145,903 442,569 Income (loss) before contributions and transfers 152,033 7,467 (346,401) (62,382) 391,240 378,401 36,094 0 776,4i0 (148,780) 627,670 TransCers: TransCer ro Cepital Project funds U00,000) (l00,000) (IOp,ppp) Change in net esstts 52,033 7,467 (]46,403) (62,382) 391,240 578,401 56,094 0 676,450 (148,780) 527,670 Netacsets•January 1 1,166,319 941,84i 9.979,202 10,580,043 10,009,023 l0,874,674 161.187 43,712,495 6,953,848 50,666,343 Netassets• December3l E1,218,i5: f949,712 59.632,'749 E10,517.661 510,400,265 511,4i3,075 E217,281 SO 544,388,943 56,80i SS1,194,013 The accompanying notes are an integrai part of these financial statemenrs. The accompanying notes are an integral pan of these financial statements. C[TY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2003 Business•Tyce Activities Business-Type Aaivities Maior Enterprise funds Maior Enterorise Funds Other To�al Municipal Golf Earle Brown Water Sanitary Stortn Enterprise Enterprise tntemal Total Liquor Course Heritage Center Utility Sewer Drainage Funds Funds Service Proprietary Cash flows Gom operating activities: ReceiptsGomcus�omersandusers S3,4i0,878 5294,149 53,312,614 EI,535,381 52,821,168 E1,268,815 5409,638 S13,I12,643 S- S13,I12,643 Receip[s from interfund services provided 1,023,4AI 1,023,44t Paymentstosuppiiers (2,800,86>) ((29,230) (2,331,407) (597,635) (1,910,329) (287.636) (382,408) (8,439,510) (428,029) (8,867,539) Paymentstoemployea (377,522) (126,680) (803,938) (343,086) (113,i36) (1,766,962) (224,235} (1,941,191) Miscellaneousrevenue 7,116 253 (5,745) 15,537 50,862 134,533 11,571 2i4,147 (3,987) 208,160 Net cash flows from operating activities 279.607 38,292 171,3?4 628.197 848,185 l,l 1i,712 38,801 3.120,318 365,190 3,485,508 Cash flows from noncapital f nancing activities: Principal paymentson advance (I5,000) (I5,000) (IS,000) Tranafen out (100,000) (100,000) (100,000) Net cash flows from noncapital financing activitia (100,000) (15,000) 0 0 0 0 0 (115,000) 0 (115,000) Cazh flows from capital and related financing activities: Acquisitionandconswctionofcapitalacuts (309,9J0) (416,�42) (323,343) (1,050,015) (130,082) (1,180,097) Principal paid on revenue bonds (210,0�0) (210,000) (2I0,000) Interest paid on revenue bonds l25,833) (25,835) (25,835) Net cash flows from capi�al and related financial activities 0 0 0 (309,930) (4i6,742) (559,178) 0 (1,265,850) (t30,082) (1,4I5,932) j O Cash flows from invating activities lnterest on invutments 13,9�6 1.048 17,776 31,180 26.473 14.321 3.000 108,354 151,890 260.24d Netcashflowsfrominvestingactiviues IA,956 1,048 �7.776 31,180 26,473 14,321 3,000 108,3i4 151,890 260,244 Net increaze in cash and cazh equivalen�s 194,563 24,340 I86,900 349,44) 437,916 570,655 41,801 1,827,822 386,998 2,214,820 Cash end cash equivalents lanuary 1 801,99J 37,281 666,529 I.SS1.�08 682.184 343,221 84,862 4,1 i7,378 6,514,190 10,671,568 Cashandcashequivalents•December3l 5996,556 S61,621 S85S.429 51.890,7i5 51.140,100 5914,076 5126,663 55,98i,200 56.901,188 512,886,388 Reconciliation of opereting income to net cath T provided (used) by apereting activitiu: Operatingincome(loss) 5129,961 56,166 (5358,034) (5109,099) S313,885 E455,382 E41,523 5479,T84 (5294,683) 5185,101 Adjusunenls to reconcile operati�g income (loss) to net cash tlows from opereting activities: Depreciation 35,580 27,912 571,632 648,I1i 479,323 313,608 2?76,170 396,702 2,872,872 Changes in assets and liabilities: Decrcase(increace) in receivables 47,154 (77,196) 28,408 (59,593) 4,303 (2,837) (59,781) 5,723 (54,058) Decrease (increaae) in inventories 3,9i8 3,809 (7,669) (3,481) (3,383) 609 (2,774) Decrease (increaze) in prepeid expenses (8,224) 3,669 (13S) 10,632 5,959 5,939 increasc (decreese) in payabtes 60,357 166 18,349 7?,978 i2,674 12,436 (1 t,436) 165,524 60,026 225,550 Increace{decrease)in accrued expenses 3.705 (14) 8,208 d,470 362 (4,i50) 12,181 2,800 �4,981 Inercase (decrease) in accrued deferted revenue 18,310 11,407 ?9,719 29,7 V Othernonoperatingincome 7.I16 233 (5,745) 13,537 50.882 134,533 11.571 214,147 (5,987) 208,160 Totaladjusunenu 149,646 32.126 529,558 737;?96 534,300 660,330 (2,722) 2,640,534 659,873 3,300.40� Netcash provided by operating activities 52�9,607 E38,292 f171,524 5628.197 5848,185 51,115,712 538.801 53,120,318 5365,190 53,483,508 The accompanying notes are an integral part of thae financial statements, The eccompanying notes are an integrel part o(these financial statements. CITY OF BROOKLYN CENTER. MINNESOTA STA'fEMENT OF EtEVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended December 3l, ?003 Business•Type Activities Business-Type Activities Major Entemrise Funds Major Enterprise Funds Other Total biunicipat Golf Earte Brown Water Sanitary Storm Enterprise intra Activity Enterprise Intemai Total Liquor Course HeritaQe Center Utility Sewer Draina¢e Funds Eliminntion Funds Service Proprie�ary Opereting revenues: Salesand userfaes 57,407,990 E?94,149 57,393,8I0 SI,i30,592 52,870,109 51,264,512 5412,495 S- S13,I�3,657 S1,O17,718 514,191,375 Costofsales 2,554,637 1,644,608 4,199,245 4,t99,245 Total operating revenues 853,353 294.149 1,749,202 1,530,592 2,870,109 1,264,512 412,495 0 8,974,412 1,017,7I8 9,992,130 Operating expenses: Personal services 381,227 126,866 $12,146 349,356 113,898 1,783,693 331,517 2,115,210 Supplies 25,669 19,301 90,368 116,272 7,640 3,861 961 264,272 191,490 457,762 Other services 116,784 88,494 340,30I 39i,397 I,926,i02 290,369 235,653 3,395,502 IAS,416 3,540,920 (nsurence 6,997 8,002 30,672 8,931 3,88} l,292 964 60,761 42,561 103,322 Utilities 12,636 17,208 137,339 121,400 22,978 133,394 464,955 2,71) 467,668 Rent 144,499 104,776 249,275 249,275 Deprecietion 35,580 2�,912 571,632 648,115 479,323 513,608 2.276J70 596,102 2,872,872 TatalaperatingexPense% 723,392 287.983 2,107,236 1,639,691 2.556.224 809,130 370,972 0 8.494,628 1,312,40I 9,807,029 Operatingincome(loss) 1?9,961 6,�66 (358,034) (109,099) �13,883 455,382 41,523 0 479,784 (294,683) I85,101 Nonoperating revenues (expenses): (nvestmenteamings 14,936 1,048 12,521 22,334 I8,925 10,237 2,144 82,16i 108,580 190,745 Special assessmenu 24,273 2d7 112 �S4 136.776 136,776 Gain (loss on sate of fixed asset �5,8�1 35,801 Otherrevenue 7,116 253 82 108 58,183 26,363 12,4?7 104,532 1,522 106,054 Inurest and fiscal agent fees (9721 (24.835) (26.807) (26,807) Totsinonoperatingrevenues(expensu) 22,072 l,)01 I1,631 46.717 77,35i 123,019 14,571 0 296,666 145,903 442,569 Income (loss) before contributions and transfers 152,033 7,467 (346,401) (62,382) 391,240 378,401 36,094 0 776,4i0 (148,780) 627,670 TransCers: TransCer ro Cepital Project funds U00,000) (l00,000) (IOp,ppp) Change in net esstts 52,033 7,467 (]46,403) (62,382) 391,240 578,401 56,094 0 676,450 (148,780) 527,670 Netacsets•January 1 1,166,319 941,84i 9.979,202 10,580,043 10,009,023 l0,874,674 161.187 43,712,495 6,953,848 50,666,343 Netassets• December3l E1,218,i5: f949,712 59.632,'749 E10,517.661 510,400,265 511,4i3,075 E217,281 SO 544,388,943 56,80i SS1,194,013 The accompanying notes are an integrai part of these financial statemenrs. The accompanying notes are an integral pan of these financial statements. C[TY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2003 Business•Tyce Activities Business-Type Aaivities Maior Enterprise funds Maior Enterorise Funds Other To�al Municipal Golf Earle Brown Water Sanitary Stortn Enterprise Enterprise tntemal Total Liquor Course Heritage Center Utility Sewer Drainage Funds Funds Service Proprietary Cash flows Gom operating activities: ReceiptsGomcus�omersandusers S3,4i0,878 5294,149 53,312,614 EI,535,381 52,821,168 E1,268,815 5409,638 S13,I12,643 S- S13,I12,643 Receip[s from interfund services provided 1,023,4AI 1,023,44t Paymentstosuppiiers (2,800,86>) ((29,230) (2,331,407) (597,635) (1,910,329) (287.636) (382,408) (8,439,510) (428,029) (8,867,539) Paymentstoemployea (377,522) (126,680) (803,938) (343,086) (113,i36) (1,766,962) (224,235} (1,941,191) Miscellaneousrevenue 7,116 253 (5,745) 15,537 50,862 134,533 11,571 2i4,147 (3,987) 208,160 Net cash flows from operating activities 279.607 38,292 171,3?4 628.197 848,185 l,l 1i,712 38,801 3.120,318 365,190 3,485,508 Cash flows from noncapital f nancing activities: Principal paymentson advance (I5,000) (I5,000) (IS,000) Tranafen out (100,000) (100,000) (100,000) Net cash flows from noncapital financing activitia (100,000) (15,000) 0 0 0 0 0 (115,000) 0 (115,000) Cazh flows from capital and related financing activities: Acquisitionandconswctionofcapitalacuts (309,9J0) (416,�42) (323,343) (1,050,015) (130,082) (1,180,097) Principal paid on revenue bonds (210,0�0) (210,000) (2I0,000) Interest paid on revenue bonds l25,833) (25,835) (25,835) Net cash flows from capi�al and related financial activities 0 0 0 (309,930) (4i6,742) (559,178) 0 (1,265,850) (t30,082) (1,4I5,932) j O Cash flows from invating activities lnterest on invutments 13,9�6 1.048 17,776 31,180 26.473 14.321 3.000 108,354 151,890 260.24d Netcashflowsfrominvestingactiviues IA,956 1,048 �7.776 31,180 26,473 14,321 3,000 108,3i4 151,890 260,244 Net increaze in cash and cazh equivalen�s 194,563 24,340 I86,900 349,44) 437,916 570,655 41,801 1,827,822 386,998 2,214,820 Cash end cash equivalents lanuary 1 801,99J 37,281 666,529 I.SS1.�08 682.184 343,221 84,862 4,1 i7,378 6,514,190 10,671,568 Cashandcashequivalents•December3l 5996,556 S61,621 S85S.429 51.890,7i5 51.140,100 5914,076 5126,663 55,98i,200 56.901,188 512,886,388 Reconciliation of opereting income to net cath T provided (used) by apereting activitiu: Operatingincome(loss) 5129,961 56,166 (5358,034) (5109,099) S313,885 E455,382 E41,523 5479,T84 (5294,683) 5185,101 Adjusunenls to reconcile operati�g income (loss) to net cash tlows from opereting activities: Depreciation 35,580 27,912 571,632 648,I1i 479,323 313,608 2?76,170 396,702 2,872,872 Changes in assets and liabilities: Decrcase(increace) in receivables 47,154 (77,196) 28,408 (59,593) 4,303 (2,837) (59,781) 5,723 (54,058) Decrease (increaae) in inventories 3,9i8 3,809 (7,669) (3,481) (3,383) 609 (2,774) Decrease (increaze) in prepeid expenses (8,224) 3,669 (13S) 10,632 5,959 5,939 increasc (decreese) in payabtes 60,357 166 18,349 7?,978 i2,674 12,436 (1 t,436) 165,524 60,026 225,550 Increace{decrease)in accrued expenses 3.705 (14) 8,208 d,470 362 (4,i50) 12,181 2,800 �4,981 Inercase (decrease) in accrued deferted revenue 18,310 11,407 ?9,719 29,7 V Othernonoperatingincome 7.I16 233 (5,745) 13,537 50.882 134,533 11.571 214,147 (5,987) 208,160 Totaladjusunenu 149,646 32.126 529,558 737;?96 534,300 660,330 (2,722) 2,640,534 659,873 3,300.40� Netcash provided by operating activities 52�9,607 E38,292 f171,524 5628.197 5848,185 51,115,712 538.801 53,120,318 5365,190 53,483,508 The accompanying notes are an integral part of thae financial statements, The eccompanying notes are an integrel part o(these financial statements. CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYIV CENTER, MINNESOTA NOTES TO FINANCInL STATEMENTS NOTES TO fINANCIAL STATEt�NTS December 31, 2003 December 31, 2003 i Nnte I S1IMMARV AF SIGNIF►CANT ACCOUNTING PnL7CtF4 Loeis Insuranee Cm� This group provides cooperative purchasing of health and Iife insurance benefits Cor The Ciry of Hrooklyn Crnter, Minnesota (the Ciry) was formed and operata pursuant to applicabfe approximately 45 governmental entities. The total of 2003 health and life insurance costs paid by Minnesota Iaws and statutes. The goveming body consists of a mayor and four City Council members the City was 3890,059. Complete financial statements may be obtained from Stanton Group elected at-large to serve four-year staggered terms. located at 3405 Annapolis Lane, Plymouth, Minnesota 55447. OTHER A. FINpNC1AL REPORTINC ENTITY The Aronkivn Cente.r Fire Deeartment Relief Ascnciation lthe Assncia[ionl The Association is organized as a nonprofit organization, legally separate from the Ciry, by its As required by accowting principies general ly accepted in the United States of America, the members to provide pension and other benefits to such members in acwrdance with Minnesota Ciry's financial statements include all funds and departments of the City and the Ciry•s component Statutes. [ts boazd of directors is elected by the membership of the Association and not by the units. The component units discussed below are included in the Ciry's reporting entiry becaute of City Council. The Association issues its own set of financial statemenss. All funding is the significance af their operational or financia� relationship with the Ciry. conducted in accordance with applicable Minnesota Statutes, whereby sWte aids flow to the Association, tax levies are detertnined by the qssociation end are only reviewed by the Ciry. The BLENDED CObiPONENT UNITS Assxiation pays benefits directfy to its members. The AssceiaHon may certify tax levies to Blended tomponent units, although legally separate, are in substance, part of the govemment's Hennepin County directly if the City does not carry out this function. Becaute the Association is operations; data from these uniu are combined with data of the primary govemment. fiscally independent of the City, the financial information of the Association haz not been included within ihe Ciry's tinancia! sWtements. (Sa Note 15C fqr disclosurcs rolating to the These additional units are the Economic Development Authority (EDA) and the Housing and pension plan operated by the Association:) The City's portion of the costs of the Assaiation's C Redevelopment Authoriry (HRA) in and for the Ciry of Brookiyn Center. pension benefits is included in the General Fund under public safery. Complete financial statements for the Association may be obtained at the City ofTices located at 6301 Shingie Creek 1 The goveming board for each Authoriry is the City Council. The Council reviews and appraves Pazkway, Brooklyn Center, Minnesota 55430. the HRA tax lery and the Ciry provides major community development financing for EDA and HRA activities. DebLC issued for EDA and HRA activities are Ciry general obligations, qlthough the EDA and HRA are legally separate from the Ciry, they are reponed az part of the City because B. GOVERNMENT-WIDE AND EUND RINANCIAI, STATEMENTS the goveming boards are the same. Comptete financial statements for the EDA and HRA may be obtained at the City offices locared at 6301 Shingle Creek Parkway, Brookiyn Center, MinnesoW The government-wide financial statements (i.e., the statement of net assets and the statement of 55430 changes in net assets) report infortnation on all of the nonfiduciary activities of the primary government and its component units. For the most part, the eftbct of interfund activity has been JO1NT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS removed from these statements. Governm¢ntalactiviries, which normally aze supported by taxes The City haz several agreementc with other entities that provide reduced costs, better service, and and intergovemmentat revenues, are reportEd separately from business-type activiriea, which rely additional benefiu to the participants. The programs in which the Ciry panicipates are listed to a signifcant extent on fees and charges for support. bebw and arnounu recorded within the curtent year's financial stateme�ts aze disclosed. The statement of activities demonstrstes the degree to which the direct expe�ues of a given l.ocal Covemmr.nt information Svsrems Association !LO(iIS� funMion or business-type acdviry are offset by program revenues. Direct expenses are those that This consonium of approximately 30 government entities provides computerized data processing are clearly identiftable with a speciHc function or business-rype activiry. Prog�om revenues and suppoct services to its members. LOGIS is legally scparate; the Ciry does not appoint a voting include 1) charges to customers or applicants who purofi use, or directly benefit from goods, majoriry of its board, and the Conaortium is fiscaily independent of the Ciry. The total amount services, or privileges ptovided by a given Cunctlon or business-rype activity and 2) grants and recorded within the 2003 financial sWtements of the City is 5439,311 for general services contributions that are restricted to meeHng the operational or capital requirements of a pazticular provided, plus 5253,938 in police software application upgrades allocated to the vazious funds function or business rype activiry. Taxes and other items not included among program revenues bazed on applications and/or use of services. Complete financiat sWtemenLS may be obtalned at ere reported instead at genera( reve�rues. the LOGIS offices located at 5750 Duluth Street, Gofden Valley, Minnesota 55422. Sepazate financial statemenCS are provided for govemmental funds and proprietary funds. Major individual govemmenta! funds and major individual enterprise funds are reported az separate colamns in the fund financial statemenu. i CITY OF BROOKLYIV CEIYTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL SYATEMENTS NOTES TO FMANCIAL STATEMENTS December 31, 2003 December 31, 2003 C. h1EASUREMENT FOCUS, BAS/S OF ACCOUNTING, AND FINANCIAL STATEMENT The /nfrarnucturs Consmrcrion Copita! Projects Fund was established ro account for the PRESEIVTATIOIV resources and expenditura required for the acquisiHon and construction of capitai facilities or improvements financed wholly or in part by special assessments levied against benefiteA The govemment-wide financial statements are reported using the econamic resources properties. measurement jocxs and ihe accrua! basis ojaccounring, as are the Proprie[ary Fwd flnanc[al The govemment reports the following major proprietary funds: sWtements. Revenues are recorded when earned and expensa are retorded when a liabilily is incuaed, regardless of the timing of related cash flows. Property taces are recogniud as revenues The Munmipa/ Liquor Fund accounts for the operations of the City's municipal off•sale in the year for which they are levied. Grants and similar items are recognized as revenue as soon liquor srores. as all eligibility requiremenu imposed by the provider have been met. The GoljCourse Fund aecounts for operations of Centerbrook Golf Course, a 9 hole par 3 Govemmmtal fund financisl starements are reported using th� cumentfinanclal �esources oourse owned by the City. measuremenrjocus and the modifred accrupl basis ojeccounting. Revenues are recognized as soon as they are both meuurable and available. Revenues are considered to be avallab(e when The 6arte Brown He�irage Center Fund accounts for the operation of a convention center. they are collectible within the current period or soon enough therea8er to pay I labiif�ies of the The Earle Brown Neritage Center is a pioneer farmstead that has been historically pceserved current period. For this purpose, the govemment considers all revenues, except �eim6ursement and restored as a modem multipurpose faciiiry. (ts convention center can host conferences, grants, to be evailable if they are coliected within 60 days of the end of the current fiscal period. hade shows, a�d conceAS seating 1,000 peaple in either banquet or theater style. The faciliry Reimbursement grants are considered available if they are collected within one year of the end of hosts many meetings, parties, weddings and receptions. the curtent fiscal period. Expenditures generally are recorded when a liabiliry is incurred, as under accrual accounting. However, debl service expendiwres, az well az expenditures related to The Warer Urifity Fund accountc for the provision of warer to customers. AdministraUOn, C compensated absences and claims and judgments, are recorded only when payment is due. wells, water storage, and distribution are included. N Property taxes, special azsessmenu, intergovemmental revenues, charges for services and interest The Sanitary Se�ver Fund accountt for the collection and pumping of sanitary sewage associated with the wnent Bscal period are all considered to be susceptible to accrual and so have I through a system of sewer Ifnes and lift sWtions. Sewage is treated by the Metropolitan been recognized as revenues of ihe curtent fiscal period. Only the portion of specia� acsessments Council Environmental Services whose fees represent about 75%of this'fund's axpenses. receivable due within the curtent flscal period is considered to be susceptible to accrual as revenue of the curtent period. All other revenue items are considered to be measureble and available only The Storm Orainage Fund accounts for the operations and improvements of the storm water when cash is received by the govemment. drainage system. It incorporates not only the storm sewer system, but also water structures The govemment reports the following major governmental funds: such aa holding pands and facilities to improve water quality. Fces are based upon the amount of water running off a property and vary with both size and absorption characteristics of the parcel. The Generaf Fund is the government's primary operating fund. It accounts for aU fnancial resources of the general govemment, except those required to be accounted for in anolher priVate-sector standards of accounting and finanetal reporting issued prior to December 1, 1989, fund, generally are followed in both the govemment•wide and proprietary-fund �nancial statements to the entent that those standards do not conflict with ar contradtct guidance of the Govemmental The Earle Brosvn TIFD7strict Specia( Revenue Fund has the authority to wllect tax pecounting Standards Board. Govemments also have the option of foliowing subsequent private- increments which are used for the historic restoration of the Earle Brown Fartn and for debt sector guidance for their business-rype activities and enterprise funds, subject to this same service paymenu of bonds which were issued for the same purpose. Iimitation. The govemment has elected not to follow subsequent private-sector guidance. Th¢ T/F District No. 3 Speciaf Revertue Fund has the authoriry to collect tax incrcments As a general rule the effect of interfund acNvity haz been eliminated from the govemment-wide which are used for various redevelopment projects within the City and for debt service financial statements. Exceptions to this generel �ule are uansactions that would be treated as payments of bonds which were issued for the same purposa revenues, expenditures or expenses if they involved extemai organi7ations, such as buying goods The Spectal Asaessment Bonds Debt Service Fund is used to account for the accumulation of and services or paymenu in lieu of taxes, are similazly treated when they involve other funds of resources for the payment of special assessment bonds. These bonds were sold to finance tho City of Brookiyn Center. Elimination of these charges would distort the direct costs and certain public improvements such as rcsidential strats and storm sewers or the provision of program revenues reported for the various functions concemed. services which are to be paid for wholly or in part from special assessments levied against benefited property. CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, !4[NNESOTA NOTES TO FINANCIAL STATEIvtENTS NOTES TO FINANC[AL STATEtv1ENTS December31,2003 December3I,2003 i Additionally, the govemment repons the following fund type: LEGAL COA�LfANCE BUDGETS /nterna! Service Funds account for compensated absences, health care insurance benefits The City follows these procedures establishing the budgetary data reflected in the financial and central garage services provided to other departrnents of the Ciry on a cost statemencs: reimbursement bazis. L In August, the Ciry Manager submiu to the City Council proposed operating budgets for Amounts reported as program revenues include I) charges to customers or applicants for goods, the fiscal yeaz commencing the following January. The operating budgets include services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and expenditures and the means of financing them. convibutions, including special assessmenu. Intemally dedicated resourees are reported ac 2. The County mails individual properry tax notiees showing the ta�ces that would result general revenues rather than ac program revenues. Likewise, general revenues include all taxes. from the proposed budgets af all taxing units to each properry owne� in November. 3. Public hearings are conducted to obtain taxpayer comments. Proprietary Cundt disdngulsh apernting revenues and expenses from nonopera�ing items. 4. The budgets are legally enacted with the passage of resolutions by the City Council in the Operating revenues and expenses generally result Bom providing servicu and producing and monih of December. delivoring goods in connection with a proprieiary fund's principal ongoing operations. The 5. Tha Ciry Council must authorize any transCer of budgeted amounts between departments principal operating rcvenues of the municipal liquor, golf counq Earl Brown Hetitage Center, within the General Fund. A vansfer of budgeced amounu withln individua! depamnents water utiliry, sanitary sewer, stortn drainage and stceet light enteryrise funds are charges to must be authorized by ffie Ciry Manager. cuslomers for sales and services. Openting expenses for enterprise funds include the cost of sales 6. Supplemental appropriations durinQ the ywr may only be made by ihe Ciry Council. and services, administrative expenses, and depreciatfon on cap(tal assets. Ail revenues and These amounts must be financed by funds from Ihe conUngency reserve set up in the expenses not meeting this definition are reported as nonoperatiog revenues and expenses. General Fund or by additional rcvenues. 7. All budget amounts lapse at the end of the year to the eMent they have not been When both restricted and unresuicted resources are available for an ellowable use, it is the expended or re-encumbered by City Councit directive in the foltowing fiscal year. W govemment's policy to use restricted resources first, then unrestricted resources as they are 8. Formal budgetary integration is employed aa a management control device during the needed year for all govemmental funds with the exception of Debt Service Funds and Capital Project Funds. Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is altematively achieved through general obligation D. BUDGETS bond indenture provisions. Budgetary control for Capital Projecu Fwds i: accomplished tivough the use of project controls and project-length budgets. The City Charter grants the Ciry Council full authoriry over the financial affairs of the Ciry. The 9. Budgers are adopted on a bacis consistent wieh accounting principles generally accepted Ciry Manager is charged with the responsibility of preparing the estimates of the annual budgec in the United States of America Annual appropriated budgets are adopted for sli and the enforeement of the provisions of the budget az specified in the Ciry Chartec Upon govemmental Cunds except for the project-length Capital Projecu Funds and Debt adoption of the annual budget resolution by the Council, it becomes the fortnal appropriation Service Funds. budget far Ciry operations. All budget adjustmenu must be approved by the Councii. Budgets 10. Budgetary control is maintained at the deparUnent level for the General Fund and at the for the Generol and Special Revenue funds are adopted on a basis consistent with accounting fund level for all other govemmental fuads that adopt annual budgets. principles generafly accepted in the United States of America. Budgeted expenditure I1. Budgeted amounts are as originally adopted, or as amended by the City Council. appropriations lapse at year end. Individual and aggregate amendments were not macerial in relation ro the original appropriations. Encumbrance accounting, under which purohase orders, contracLt, and other commitments for the expenditure of monies aze recorded in order to reserve that portion of the appropriatioq is not HUDGF.T VaRInNCES employed by the City beaause it is, at present, not considered necessary to assure effective budgetary control or ta facilitate effective cash management. For the year ended December 3l, 2003, expenditures exceeded appropriations of the Economic Development Authority and Ciry Initiativa Grant Special Revenue Funds by 573,077 and 3340,991,respeccively. CI'CY OF BROOKLYN CENTER MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FMANCIAL STATEMEN'IS NOTES TO FINANCIAL STATEMENfS December 31, 2003 December 31, 2003 E. CASH AND INVESTMENTS GOVF,RNMENT-Wf�E FINANCIAL STATEMENTS The Ciry raognizes properry tax revenue in the period for which the tazes were levied. Cash balances from all funds are combined and invested to the extent available fn cenificates of Uncollectible property taxes are not material and have not been reported. deposit, U.S. govemment ucurities and other securities authorized by State Statute. Inveslment COVERNMENTAL FI1ND FMANCIAL STaTEMENTS income is allocated ro the rcspective tunds on the basis of applicable cash balance panicipation by The City mcognizes property tax revenue when it becomes both measurable and available to each fund. Invesmients are stated at fair value, based upon quoted market prices as of the balance finance expenditures of the curtent period. In practice, curtent and delinquent taxes and State sheet date, Investment income is accrued at the balance sheet date, crediu raeived by the Ciry in July, Decembet and January ere recognized as revenue for the The Ciry provides temporary advances to funds that have insufficient cash balances by means of current year. Taxes collected by the Counry by December 31(remitted to the Ciry the Collowing an advance from another fund shown as interfund receivables in the advancing fund, and an lanuary) and taxes and credits not received at the year end are classified as delinquent and due interfund payable in the fwd with the deficit, until adequate resources are received. These from County taxes receivable. The portion of delinquent ta�ces not collected by the Ciry in interfund balances are eliminated on the govemment•wide financial statements. lanuary are fuliy ot1'set by deferted revenue baause they are not available to flnance curtent expendihves. For purposes of the statement of cash flows the Ciry considers all high�y Hquid investments with a maturiry of three months or less when purchased to be cash equivalents. All of the cash and H. MARKET VAI,UE HOMESl'EAD CREDIT investments allocated to the proprietary funds have original maturities of 90 days or las. Therefore the entire balance in the Proprietary Funds are considered cash equivalents. Property taxes on residential agricultural homestead properry (as defined by Sate Statutes) are partial ly reduced by market value homestead credit (MVHC). This crodit is paid to the Ciry by F. RECEIVABLES AND PAYABLES the State in lieu of taxes levied against homesuad properry. 'the State remits lhis credit through installmens each year. Tha credit is recognized as revenue by the Ciry at the time of collection. The City has rewrded this with property tau revenue. During the course of operations, numerous transactions acur behveen individual funds for goods I provided or services rendered. Short-term interfund loans are clusified aa "interfund I receivables/payables." All short-term interCund receivables and payables at December 31, 2003 i. SPECIAI. ASSESSMENT REVENUE RECOGNITION aze planned to be e�iminated tn 2004. Long-term interPond loans are clusified u"interCund loan reeeivableJpayable." Any residual balances ouutanding benreen the govemmental activities and Special assessments are levied against benefited properties for the cost or a portion of the cost of business-rype activities ere reponed in the govemment•wide ftnancial statements as "intemal special assessment improvement projecu in accordance with State Statutes. These assessmentt balances:' are wllecdble by the Ciry over a tem� of years usually consistent with the term ofthe rolated bond issue. Collection of annual insWllmenls.(including interest) is handled by the Counry Auditw in Property taxes and special azsessments have been rcported net of estimated uncollectible accountt. the same manner aa property taxes. Properry owntts are allowed to (and often do) prepay future (See Note I G and 1) Because utiliry bills are considered liens on propecty, no estimated installments without incerest or prepaymrnt penalties. unwllectible amounu are established. Uncollectible amounts are not material for other receivables and have not bcen reported. Once a special auessment roll is adopted, the amount attributed to each parcel is a lien upon that property until tull payment is made or the amount is detecmined to be excessive by the Ciry G. PROPERTY TAX REVENUE RECOGNITION Cowcit or court action. [f special assessments ere allowed to go delinquent, the property is subject to tax forfeit sale. Proceedi of sales from Wc forfeit properties are allocated flrst to the The Ciry Council annually adopts a tax levy and cettifies it ro the Counry in December County's costs of administering ell tex Forfeit properties. Punuant to State SWtutes, a property le lassessment date of each ear for collection in the followin shall be subjeat to a tau forfeit sale after three years unless it is homesteaded, agricultural or �"Y Y g year. The Counry is seasonal recreational land in which event the property is subject to such sale after five years. responsible for biiling and collecting all property taues for itself, the City, the local Schoal District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as rcceivables by the Ciry at that date. Real property taxes are payable (by property ownen} on May GOVERNMENT-W IDE FMAN(71AL STATEMENTS I S and October t S of each calendar year. Personal properry tares are payable by taxpayers on The City recognizes special �ssessment revenue in the period that the assessment rol! was adopted February 28 and June 30 of each year. These taues are wllected by the Counry and remitted to by the Ciry Cowcil. Uncollectible special assessments are not materiel end have not been the Ciry on or before July 7 and December 2 of the same year. Delinquent collections for reported. November and December are received the following January. The Ciry has no ability ro enforce payment of property taxes by property owners. The County possesses this authoriry. ;p re�� CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS NOTES TO FtNANCIAL STATEMENTS December31,2003 December31,2003 r COVERNMEMAL FUNp FINpNCI�. STATF.MENTS Properry, plant and equipment of the primary govemment, as well as the component units, is Revenue Bom special usessments is recognized by the City when it becomes meaturable and depreciated using the svaight line method over the following estimated usePol lives: available �o finance expenditures of the curtent fiscal period. In practice, curtent and delinquent special assessments received by the Ciry are recognized as rovenue for the curtrnt year. Special Paved streets 25 years assessments that are collected by the Counry by December 31 (romined to the Ciry the following Water and sewer mains and lines gg y�g January) and are also recognized as revenue for the wvent year. Al! mmaining delinqumt, Buildings and structures Z5 Y deferted and special deferred assessments receivabie in govemmental funding are compietety Wahr wells and storage tanks 25 years ofCset by defened revenues. Sewer lifl stations 25 years Street lighu and traffic ligh�s 15 years J. INVENTORIES Machinery and equipment 5-]5 years Departrnental equipment 5 yeazs GOVERN[„1gN7'pL FUNDS The primary gavernment dces not maintain material amounu of inventory within tha other M. COMPENSATED ABSENCES governmental Ponds Invenrories of govemmental funds are recorded as expenditures when consumed rather than when purchased. It is the City's poiicy to permit employea to accumulate eamed but unused vacation and sick pay PROPRIFTARY FUNDS benefits. AII vacation pay is accrued in the intemal service fund financial statements. A liability for thae amounu is reported in govemmental tLnds only if they have matured, for exarnple, ac a Inventories in the proprietary funds are valued at wst, using the weighted average method in the resui� of employee resignations and rctircments. In aocordance with the provisions�of Statement Municipal Liquar Fund and the first-in/first-out (FIFO) method in the other proprietary funds. of Government Accounting Standards No. 16, Accountin (11 The costs of govemmental fund type supplies are recorded as expenditures when purchazed. gjor CompensaJed Absences,�no liability is raorded for nonvesting accumulating rights to reeeive sick pay benefiLS. However, a liabiliry is recognized for that portion of aocumulating sick leave benefitt that is vested as severance pay. K. PREpp[D ITEMS Cerlain payments to vendors rettect costs applicable to future accountin N. LONG-TERM OBLIGAT[ONS as prepaid items in both govemmenbwide and fund financial statements. periods and are recorded In the govemmenawide financiai statements and proprietary fund rypes in the fund financial statemenu, long-term debt and other long-term obligations are reported as liabilities in the L. CAPITAL ASSETS applicable govemmental activities, basiness-rype activitia, or proprietary fund type statement of net aueb. Bond premiums and discourtts, aa weff as issuence costs, ere immaterial and are CapiW) assets, which include rp expensed in the year of bond issuance. P Peny, p�ant, equipment and infrastructure atset5 (e.g., roads, bridges, sidewalks, and similar items), are reponed in the applicable govemmental or business- [n the fund finenciai statements, ovemmental fund rype activities columns in the govemment-wide financial statements. Capital assets are defined b g tyPes recognize bond premiums and Y discounts, az well as bond issuance costs, during the cuRent period. The face amount of debt ihe govemment as assets with an initial, individual cost of more than $5,000 (amount not rounded) issued is reported es other 8nancing sources. Premiums received on debt issuances are reported end an estimated useful life in excess ofone year. Such asse�s are recorded at historical cost or as other tinancing sources while discounts on debt issuances are reported az other financing uses. estimated hismrical wst if purchased or constructed. Donated capital azsets are recorded az Issuance wsts, whether or not withheld Rom the acNal dtbt proceeds received, are reported as estimated fair market value at the date of donation. debt service expenditures. The costs of normal mainrenance and repairs that do not add to the value of the azset or materially extend asseu lives are not capitalized. O. FUND EQUITY Major outlays for capiWl assets and improvements aze capitalized as projects are constructed. In the tUnd financial statements, govemmmtal funds report reservations of fund balance for Interest incurted during the conswction phase of capital assets of business•type activities is included as part of the capiwlized value of the asseu consweted. For the year ended December amounts not appropriable for expenditure or legally segregated for a speci6c tuture use. 31. 2003, no interest waz capiralized in connection with conswction in progress. Designated fund balances represent tenutive plans for future use of financial resowces. CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYIV CENTER, MINNESOTA NOTES TO FINANCInL STATEMENTS NOTES TO fINANCIAL STATEt�NTS December 31, 2003 December 31, 2003 i Nnte I S1IMMARV AF SIGNIF►CANT ACCOUNTING PnL7CtF4 Loeis Insuranee Cm� This group provides cooperative purchasing of health and Iife insurance benefits Cor The Ciry of Hrooklyn Crnter, Minnesota (the Ciry) was formed and operata pursuant to applicabfe approximately 45 governmental entities. The total of 2003 health and life insurance costs paid by Minnesota Iaws and statutes. The goveming body consists of a mayor and four City Council members the City was 3890,059. Complete financial statements may be obtained from Stanton Group elected at-large to serve four-year staggered terms. located at 3405 Annapolis Lane, Plymouth, Minnesota 55447. OTHER A. FINpNC1AL REPORTINC ENTITY The Aronkivn Cente.r Fire Deeartment Relief Ascnciation lthe Assncia[ionl The Association is organized as a nonprofit organization, legally separate from the Ciry, by its As required by accowting principies general ly accepted in the United States of America, the members to provide pension and other benefits to such members in acwrdance with Minnesota Ciry's financial statements include all funds and departments of the City and the Ciry•s component Statutes. [ts boazd of directors is elected by the membership of the Association and not by the units. The component units discussed below are included in the Ciry's reporting entiry becaute of City Council. The Association issues its own set of financial statemenss. All funding is the significance af their operational or financia� relationship with the Ciry. conducted in accordance with applicable Minnesota Statutes, whereby sWte aids flow to the Association, tax levies are detertnined by the qssociation end are only reviewed by the Ciry. The BLENDED CObiPONENT UNITS Assxiation pays benefits directfy to its members. The AssceiaHon may certify tax levies to Blended tomponent units, although legally separate, are in substance, part of the govemment's Hennepin County directly if the City does not carry out this function. Becaute the Association is operations; data from these uniu are combined with data of the primary govemment. fiscally independent of the City, the financial information of the Association haz not been included within ihe Ciry's tinancia! sWtements. (Sa Note 15C fqr disclosurcs rolating to the These additional units are the Economic Development Authority (EDA) and the Housing and pension plan operated by the Association:) The City's portion of the costs of the Assaiation's C Redevelopment Authoriry (HRA) in and for the Ciry of Brookiyn Center. pension benefits is included in the General Fund under public safery. Complete financial statements for the Association may be obtained at the City ofTices located at 6301 Shingie Creek 1 The goveming board for each Authoriry is the City Council. The Council reviews and appraves Pazkway, Brooklyn Center, Minnesota 55430. the HRA tax lery and the Ciry provides major community development financing for EDA and HRA activities. DebLC issued for EDA and HRA activities are Ciry general obligations, qlthough the EDA and HRA are legally separate from the Ciry, they are reponed az part of the City because B. GOVERNMENT-WIDE AND EUND RINANCIAI, STATEMENTS the goveming boards are the same. Comptete financial statements for the EDA and HRA may be obtained at the City offices locared at 6301 Shingle Creek Parkway, Brookiyn Center, MinnesoW The government-wide financial statements (i.e., the statement of net assets and the statement of 55430 changes in net assets) report infortnation on all of the nonfiduciary activities of the primary government and its component units. For the most part, the eftbct of interfund activity has been JO1NT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS removed from these statements. Governm¢ntalactiviries, which normally aze supported by taxes The City haz several agreementc with other entities that provide reduced costs, better service, and and intergovemmentat revenues, are reportEd separately from business-type activiriea, which rely additional benefiu to the participants. The programs in which the Ciry panicipates are listed to a signifcant extent on fees and charges for support. bebw and arnounu recorded within the curtent year's financial stateme�ts aze disclosed. The statement of activities demonstrstes the degree to which the direct expe�ues of a given l.ocal Covemmr.nt information Svsrems Association !LO(iIS� funMion or business-type acdviry are offset by program revenues. Direct expenses are those that This consonium of approximately 30 government entities provides computerized data processing are clearly identiftable with a speciHc function or business-rype activiry. Prog�om revenues and suppoct services to its members. LOGIS is legally scparate; the Ciry does not appoint a voting include 1) charges to customers or applicants who purofi use, or directly benefit from goods, majoriry of its board, and the Conaortium is fiscaily independent of the Ciry. The total amount services, or privileges ptovided by a given Cunctlon or business-rype activity and 2) grants and recorded within the 2003 financial sWtements of the City is 5439,311 for general services contributions that are restricted to meeHng the operational or capital requirements of a pazticular provided, plus 5253,938 in police software application upgrades allocated to the vazious funds function or business rype activiry. Taxes and other items not included among program revenues bazed on applications and/or use of services. Complete financiat sWtemenLS may be obtalned at ere reported instead at genera( reve�rues. the LOGIS offices located at 5750 Duluth Street, Gofden Valley, Minnesota 55422. Sepazate financial statemenCS are provided for govemmental funds and proprietary funds. Major individual govemmenta! funds and major individual enterprise funds are reported az separate colamns in the fund financial statemenu. i CITY OF BROOKLYIV CEIYTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL SYATEMENTS NOTES TO FMANCIAL STATEMENTS December 31, 2003 December 31, 2003 C. h1EASUREMENT FOCUS, BAS/S OF ACCOUNTING, AND FINANCIAL STATEMENT The /nfrarnucturs Consmrcrion Copita! Projects Fund was established ro account for the PRESEIVTATIOIV resources and expenditura required for the acquisiHon and construction of capitai facilities or improvements financed wholly or in part by special assessments levied against benefiteA The govemment-wide financial statements are reported using the econamic resources properties. measurement jocxs and ihe accrua! basis ojaccounring, as are the Proprie[ary Fwd flnanc[al The govemment reports the following major proprietary funds: sWtements. Revenues are recorded when earned and expensa are retorded when a liabilily is incuaed, regardless of the timing of related cash flows. Property taces are recogniud as revenues The Munmipa/ Liquor Fund accounts for the operations of the City's municipal off•sale in the year for which they are levied. Grants and similar items are recognized as revenue as soon liquor srores. as all eligibility requiremenu imposed by the provider have been met. The GoljCourse Fund aecounts for operations of Centerbrook Golf Course, a 9 hole par 3 Govemmmtal fund financisl starements are reported using th� cumentfinanclal �esources oourse owned by the City. measuremenrjocus and the modifred accrupl basis ojeccounting. Revenues are recognized as soon as they are both meuurable and available. Revenues are considered to be avallab(e when The 6arte Brown He�irage Center Fund accounts for the operation of a convention center. they are collectible within the current period or soon enough therea8er to pay I labiif�ies of the The Earle Brown Neritage Center is a pioneer farmstead that has been historically pceserved current period. For this purpose, the govemment considers all revenues, except �eim6ursement and restored as a modem multipurpose faciiiry. (ts convention center can host conferences, grants, to be evailable if they are coliected within 60 days of the end of the current fiscal period. hade shows, a�d conceAS seating 1,000 peaple in either banquet or theater style. The faciliry Reimbursement grants are considered available if they are collected within one year of the end of hosts many meetings, parties, weddings and receptions. the curtent fiscal period. Expenditures generally are recorded when a liabiliry is incurred, as under accrual accounting. However, debl service expendiwres, az well az expenditures related to The Warer Urifity Fund accountc for the provision of warer to customers. AdministraUOn, C compensated absences and claims and judgments, are recorded only when payment is due. wells, water storage, and distribution are included. N Property taxes, special azsessmenu, intergovemmental revenues, charges for services and interest The Sanitary Se�ver Fund accountt for the collection and pumping of sanitary sewage associated with the wnent Bscal period are all considered to be susceptible to accrual and so have I through a system of sewer Ifnes and lift sWtions. Sewage is treated by the Metropolitan been recognized as revenues of ihe curtent fiscal period. Only the portion of specia� acsessments Council Environmental Services whose fees represent about 75%of this'fund's axpenses. receivable due within the curtent flscal period is considered to be susceptible to accrual as revenue of the curtent period. All other revenue items are considered to be measureble and available only The Storm Orainage Fund accounts for the operations and improvements of the storm water when cash is received by the govemment. drainage system. It incorporates not only the storm sewer system, but also water structures The govemment reports the following major governmental funds: such aa holding pands and facilities to improve water quality. Fces are based upon the amount of water running off a property and vary with both size and absorption characteristics of the parcel. The Generaf Fund is the government's primary operating fund. It accounts for aU fnancial resources of the general govemment, except those required to be accounted for in anolher priVate-sector standards of accounting and finanetal reporting issued prior to December 1, 1989, fund, generally are followed in both the govemment•wide and proprietary-fund �nancial statements to the entent that those standards do not conflict with ar contradtct guidance of the Govemmental The Earle Brosvn TIFD7strict Specia( Revenue Fund has the authority to wllect tax pecounting Standards Board. Govemments also have the option of foliowing subsequent private- increments which are used for the historic restoration of the Earle Brown Fartn and for debt sector guidance for their business-rype activities and enterprise funds, subject to this same service paymenu of bonds which were issued for the same purpose. Iimitation. The govemment has elected not to follow subsequent private-sector guidance. Th¢ T/F District No. 3 Speciaf Revertue Fund has the authoriry to collect tax incrcments As a general rule the effect of interfund acNvity haz been eliminated from the govemment-wide which are used for various redevelopment projects within the City and for debt service financial statements. Exceptions to this generel �ule are uansactions that would be treated as payments of bonds which were issued for the same purposa revenues, expenditures or expenses if they involved extemai organi7ations, such as buying goods The Spectal Asaessment Bonds Debt Service Fund is used to account for the accumulation of and services or paymenu in lieu of taxes, are similazly treated when they involve other funds of resources for the payment of special assessment bonds. These bonds were sold to finance tho City of Brookiyn Center. Elimination of these charges would distort the direct costs and certain public improvements such as rcsidential strats and storm sewers or the provision of program revenues reported for the various functions concemed. services which are to be paid for wholly or in part from special assessments levied against benefited property. CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December )1, 2003 Business•Type Activities Business-Type Activities Maior Enterprise FundS Maior Entemrise Funds Other Municipal Golf Earle Brown Water Sanilary Storm Entcrprise Total Intemal To[al Liquor Course Herita�se Center Utility Sewe� Drainage Funds Enterprise Service Proprietary Assets: Cunent azsets: Cash and cash equivalents 5996,i36 561,621 5855,4?9 51,890,755 SI,140,100 E914,076 5126,663 55,985,200 56,901,188 512,886,388 Accountsreceivable-net t0,357 264,792 294,622 659,925 267,251 91,689 1,SB8,636 3,495 1,592,131 Special assessmenu receivable 260,9i4 3,124 7,992 272,070 272,070 Prepaiditems 20,804 8,J64 138 118,720 148,026 I48,026 Inventories at cost 275,245 3,560 34,419 27,390 340,634 14,852 335,686 Totaicurrentassets 1,302,962 6i,201 1,163,004 2.474,059 1,921,869 1,189,319 218.352 8,334,766 6,919,535 15,254.301 Noncurrent assets: Capital asseu: Land 1,390,402 1,493,300 23,093 3,389 287,458 3,197,342 3,197,342 Land improvemenu 40,258 327,830 368,088 J68,088 Buildings and structures 487,946 I1,091,389 3,331,394 2,484,959 17,395,678 17,395,678 Machinery and equipment ?53,003 11,160 45,544 128,668 I'/9,130 617,503 S,Bt6,573 6,434,078 Mainssndlina 13,�15,130 12,446.383 11,979.555 38,141,066 38,141,068 Totalcapiwlassets 253,003 1,929,766 12,958,063 17,198,275 13,113,861 12,266,713 0 59.719,661 5,816,573 65,536,254 Less: Allowancefordeprociation (106,739) (156,844) (4,072,610) (8,950,5941 (6,554,207) (1,529,672) (21,371.066) (3,578,243) (24,949,309) Net capital assets 146,264 1,772,922 8.885,253 8,247,681 8,559,654 10,736,84t 0 38.348,615 2,238,330 40,586,945 Total noncurtent assets 146,264 1,772,922 8,885,253 8,247,681 8,559,654 10,736,841 0 38,348,615 2,238,330 40,586,945 Totalasseu 1,049,226 1,838,1?3 10,048.257 I0.721.740 10,481,523 i1,926.160 218,352 46,683,381 9,157,86i 55,841,246 Liabilities: Curtent liabilities: Accounts payable 211,094 1,495 189,238 56,251 7i,676 I3,052 I,071 547,877 11,816 559,693 Deposits payable 170,973 5,050 176,023 176,023 Accrued salaries payable 19,580 2,316 35,337 14,783 5,582 77,398 10,519 88,117 Accrued intercst payable 10,033 10,033 10,033 peCerred rcvenue 19,910 127,99i 147,9p5 147,903 Currentponion oflong-term debt 220,000 220,000 220,000 Advances from other funds B85.000 885,000 885,000 Total currrnt liabilities 270,674 888,811 415,458 204.079 81,258 243.085 1,071 2,064,436 22,335 2.066,771 Noncurrent liabilitia: Bondspayable 230,000 ?30,000 23�,000 Compensated absences payable 783,227 783,227 Accrued health insurance liabiliry t,i47?35 1,54�,235 Total noncurrent liabilities 0 0 0 0 0 230,000 0 230,000 2,330,462 2,560,462 Totalliabilitia 230.674 888,81i 415.458 204,079 S1,258 473.085 1,071 2,?94,476 2,352,797 4,647,233 Net assets: Invested in capital assets, net of related debt 146,264 1,772,922 8,885,2i3 8,347,681 8,i59,6i4 10,286,841 37,898,6I5 2,238,330 40,136,943 Unratricttd 1,072,286 (823.610) 747,546 2169,980 1,840,611 L166,234 217,281 6,49p,330 4,566,736 11.037.068 Totalnetasseu 51.218,552 5949,312 59,632.799 SIO,il7,661 510.400,265 511,453,07i 5211,281 44,388,943 56,803,068 T51,194,013 Adjustmrnt to retlect the wnsolidation of intemal service Cund acdvities related to enterprisefunds (25,998) Net assets oE business•rype acHvities S44,162,947 The accompanying notes are an integrat part of theu finencial statemenu. The accompanying noces are an integrel part oCthese finencial statements. CITY OF BROOKLYN CENTER. MINNESOTA STA'fEMENT OF EtEVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended December 3l, ?003 Business•Type Activities Business-Type Activities Major Entemrise Funds Major Enterprise Funds Other Total biunicipat Golf Earte Brown Water Sanitary Storm Enterprise intra Activity Enterprise Intemai Total Liquor Course HeritaQe Center Utility Sewer Draina¢e Funds Eliminntion Funds Service Proprie�ary Opereting revenues: Salesand userfaes 57,407,990 E?94,149 57,393,8I0 SI,i30,592 52,870,109 51,264,512 5412,495 S- S13,I�3,657 S1,O17,718 514,191,375 Costofsales 2,554,637 1,644,608 4,199,245 4,t99,245 Total operating revenues 853,353 294.149 1,749,202 1,530,592 2,870,109 1,264,512 412,495 0 8,974,412 1,017,7I8 9,992,130 Operating expenses: Personal services 381,227 126,866 $12,146 349,356 113,898 1,783,693 331,517 2,115,210 Supplies 25,669 19,301 90,368 116,272 7,640 3,861 961 264,272 191,490 457,762 Other services 116,784 88,494 340,30I 39i,397 I,926,i02 290,369 235,653 3,395,502 IAS,416 3,540,920 (nsurence 6,997 8,002 30,672 8,931 3,88} l,292 964 60,761 42,561 103,322 Utilities 12,636 17,208 137,339 121,400 22,978 133,394 464,955 2,71) 467,668 Rent 144,499 104,776 249,275 249,275 Deprecietion 35,580 2�,912 571,632 648,115 479,323 513,608 2.276J70 596,102 2,872,872 TatalaperatingexPense% 723,392 287.983 2,107,236 1,639,691 2.556.224 809,130 370,972 0 8.494,628 1,312,40I 9,807,029 Operatingincome(loss) 1?9,961 6,�66 (358,034) (109,099) �13,883 455,382 41,523 0 479,784 (294,683) I85,101 Nonoperating revenues (expenses): (nvestmenteamings 14,936 1,048 12,521 22,334 I8,925 10,237 2,144 82,16i 108,580 190,745 Special assessmenu 24,273 2d7 112 �S4 136.776 136,776 Gain (loss on sate of fixed asset �5,8�1 35,801 Otherrevenue 7,116 253 82 108 58,183 26,363 12,4?7 104,532 1,522 106,054 Inurest and fiscal agent fees (9721 (24.835) (26.807) (26,807) Totsinonoperatingrevenues(expensu) 22,072 l,)01 I1,631 46.717 77,35i 123,019 14,571 0 296,666 145,903 442,569 Income (loss) before contributions and transfers 152,033 7,467 (346,401) (62,382) 391,240 378,401 36,094 0 776,4i0 (148,780) 627,670 TransCers: TransCer ro Cepital Project funds U00,000) (l00,000) (IOp,ppp) Change in net esstts 52,033 7,467 (]46,403) (62,382) 391,240 578,401 56,094 0 676,450 (148,780) 527,670 Netacsets•January 1 1,166,319 941,84i 9.979,202 10,580,043 10,009,023 l0,874,674 161.187 43,712,495 6,953,848 50,666,343 Netassets• December3l E1,218,i5: f949,712 59.632,'749 E10,517.661 510,400,265 511,4i3,075 E217,281 SO 544,388,943 56,80i SS1,194,013 The accompanying notes are an integrai part of these financial statemenrs. The accompanying notes are an integral pan of these financial statements. C[TY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2003 Business•Tyce Activities Business-Type Aaivities Maior Enterprise funds Maior Enterorise Funds Other To�al Municipal Golf Earle Brown Water Sanitary Stortn Enterprise Enterprise tntemal Total Liquor Course Heritage Center Utility Sewer Drainage Funds Funds Service Proprietary Cash flows Gom operating activities: ReceiptsGomcus�omersandusers S3,4i0,878 5294,149 53,312,614 EI,535,381 52,821,168 E1,268,815 5409,638 S13,I12,643 S- S13,I12,643 Receip[s from interfund services provided 1,023,4AI 1,023,44t Paymentstosuppiiers (2,800,86>) ((29,230) (2,331,407) (597,635) (1,910,329) (287.636) (382,408) (8,439,510) (428,029) (8,867,539) Paymentstoemployea (377,522) (126,680) (803,938) (343,086) (113,i36) (1,766,962) (224,235} (1,941,191) Miscellaneousrevenue 7,116 253 (5,745) 15,537 50,862 134,533 11,571 2i4,147 (3,987) 208,160 Net cash flows from operating activities 279.607 38,292 171,3?4 628.197 848,185 l,l 1i,712 38,801 3.120,318 365,190 3,485,508 Cash flows from noncapital f nancing activities: Principal paymentson advance (I5,000) (I5,000) (IS,000) Tranafen out (100,000) (100,000) (100,000) Net cash flows from noncapital financing activitia (100,000) (15,000) 0 0 0 0 0 (115,000) 0 (115,000) Cazh flows from capital and related financing activities: Acquisitionandconswctionofcapitalacuts (309,9J0) (416,�42) (323,343) (1,050,015) (130,082) (1,180,097) Principal paid on revenue bonds (210,0�0) (210,000) (2I0,000) Interest paid on revenue bonds l25,833) (25,835) (25,835) Net cash flows from capi�al and related financial activities 0 0 0 (309,930) (4i6,742) (559,178) 0 (1,265,850) (t30,082) (1,4I5,932) j O Cash flows from invating activities lnterest on invutments 13,9�6 1.048 17,776 31,180 26.473 14.321 3.000 108,354 151,890 260.24d Netcashflowsfrominvestingactiviues IA,956 1,048 �7.776 31,180 26,473 14,321 3,000 108,3i4 151,890 260,244 Net increaze in cash and cazh equivalen�s 194,563 24,340 I86,900 349,44) 437,916 570,655 41,801 1,827,822 386,998 2,214,820 Cash end cash equivalents lanuary 1 801,99J 37,281 666,529 I.SS1.�08 682.184 343,221 84,862 4,1 i7,378 6,514,190 10,671,568 Cashandcashequivalents•December3l 5996,556 S61,621 S85S.429 51.890,7i5 51.140,100 5914,076 5126,663 55,98i,200 56.901,188 512,886,388 Reconciliation of opereting income to net cath T provided (used) by apereting activitiu: Operatingincome(loss) 5129,961 56,166 (5358,034) (5109,099) S313,885 E455,382 E41,523 5479,T84 (5294,683) 5185,101 Adjusunenls to reconcile operati�g income (loss) to net cash tlows from opereting activities: Depreciation 35,580 27,912 571,632 648,I1i 479,323 313,608 2?76,170 396,702 2,872,872 Changes in assets and liabilities: Decrcase(increace) in receivables 47,154 (77,196) 28,408 (59,593) 4,303 (2,837) (59,781) 5,723 (54,058) Decrease (increaae) in inventories 3,9i8 3,809 (7,669) (3,481) (3,383) 609 (2,774) Decrease (increaze) in prepeid expenses (8,224) 3,669 (13S) 10,632 5,959 5,939 increasc (decreese) in payabtes 60,357 166 18,349 7?,978 i2,674 12,436 (1 t,436) 165,524 60,026 225,550 Increace{decrease)in accrued expenses 3.705 (14) 8,208 d,470 362 (4,i50) 12,181 2,800 �4,981 Inercase (decrease) in accrued deferted revenue 18,310 11,407 ?9,719 29,7 V Othernonoperatingincome 7.I16 233 (5,745) 13,537 50.882 134,533 11.571 214,147 (5,987) 208,160 Totaladjusunenu 149,646 32.126 529,558 737;?96 534,300 660,330 (2,722) 2,640,534 659,873 3,300.40� Netcash provided by operating activities 52�9,607 E38,292 f171,524 5628.197 5848,185 51,115,712 538.801 53,120,318 5365,190 53,483,508 The accompanying notes are an integral part of thae financial statements, The eccompanying notes are an integrel part o(these financial statements. CITY OF BROOKLYN CENTER. MINNESOTA STA'fEMENT OF EtEVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended December 3l, ?003 Business•Type Activities Business-Type Activities Major Entemrise Funds Major Enterprise Funds Other Total biunicipat Golf Earte Brown Water Sanitary Storm Enterprise intra Activity Enterprise Intemai Total Liquor Course HeritaQe Center Utility Sewer Draina¢e Funds Eliminntion Funds Service Proprie�ary Opereting revenues: Salesand userfaes 57,407,990 E?94,149 57,393,8I0 SI,i30,592 52,870,109 51,264,512 5412,495 S- S13,I�3,657 S1,O17,718 514,191,375 Costofsales 2,554,637 1,644,608 4,199,245 4,t99,245 Total operating revenues 853,353 294.149 1,749,202 1,530,592 2,870,109 1,264,512 412,495 0 8,974,412 1,017,7I8 9,992,130 Operating expenses: Personal services 381,227 126,866 $12,146 349,356 113,898 1,783,693 331,517 2,115,210 Supplies 25,669 19,301 90,368 116,272 7,640 3,861 961 264,272 191,490 457,762 Other services 116,784 88,494 340,30I 39i,397 I,926,i02 290,369 235,653 3,395,502 IAS,416 3,540,920 (nsurence 6,997 8,002 30,672 8,931 3,88} l,292 964 60,761 42,561 103,322 Utilities 12,636 17,208 137,339 121,400 22,978 133,394 464,955 2,71) 467,668 Rent 144,499 104,776 249,275 249,275 Deprecietion 35,580 2�,912 571,632 648,115 479,323 513,608 2.276J70 596,102 2,872,872 TatalaperatingexPense% 723,392 287.983 2,107,236 1,639,691 2.556.224 809,130 370,972 0 8.494,628 1,312,40I 9,807,029 Operatingincome(loss) 1?9,961 6,�66 (358,034) (109,099) �13,883 455,382 41,523 0 479,784 (294,683) I85,101 Nonoperating revenues (expenses): (nvestmenteamings 14,936 1,048 12,521 22,334 I8,925 10,237 2,144 82,16i 108,580 190,745 Special assessmenu 24,273 2d7 112 �S4 136.776 136,776 Gain (loss on sate of fixed asset �5,8�1 35,801 Otherrevenue 7,116 253 82 108 58,183 26,363 12,4?7 104,532 1,522 106,054 Inurest and fiscal agent fees (9721 (24.835) (26.807) (26,807) Totsinonoperatingrevenues(expensu) 22,072 l,)01 I1,631 46.717 77,35i 123,019 14,571 0 296,666 145,903 442,569 Income (loss) before contributions and transfers 152,033 7,467 (346,401) (62,382) 391,240 378,401 36,094 0 776,4i0 (148,780) 627,670 TransCers: TransCer ro Cepital Project funds U00,000) (l00,000) (IOp,ppp) Change in net esstts 52,033 7,467 (]46,403) (62,382) 391,240 578,401 56,094 0 676,450 (148,780) 527,670 Netacsets•January 1 1,166,319 941,84i 9.979,202 10,580,043 10,009,023 l0,874,674 161.187 43,712,495 6,953,848 50,666,343 Netassets• December3l E1,218,i5: f949,712 59.632,'749 E10,517.661 510,400,265 511,4i3,075 E217,281 SO 544,388,943 56,80i SS1,194,013 The accompanying notes are an integrai part of these financial statemenrs. The accompanying notes are an integral pan of these financial statements. C[TY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2003 Business•Tyce Activities Business-Type Aaivities Maior Enterprise funds Maior Enterorise Funds Other To�al Municipal Golf Earle Brown Water Sanitary Stortn Enterprise Enterprise tntemal Total Liquor Course Heritage Center Utility Sewer Drainage Funds Funds Service Proprietary Cash flows Gom operating activities: ReceiptsGomcus�omersandusers S3,4i0,878 5294,149 53,312,614 EI,535,381 52,821,168 E1,268,815 5409,638 S13,I12,643 S- S13,I12,643 Receip[s from interfund services provided 1,023,4AI 1,023,44t Paymentstosuppiiers (2,800,86>) ((29,230) (2,331,407) (597,635) (1,910,329) (287.636) (382,408) (8,439,510) (428,029) (8,867,539) Paymentstoemployea (377,522) (126,680) (803,938) (343,086) (113,i36) (1,766,962) (224,235} (1,941,191) Miscellaneousrevenue 7,116 253 (5,745) 15,537 50,862 134,533 11,571 2i4,147 (3,987) 208,160 Net cash flows from operating activities 279.607 38,292 171,3?4 628.197 848,185 l,l 1i,712 38,801 3.120,318 365,190 3,485,508 Cash flows from noncapital f nancing activities: Principal paymentson advance (I5,000) (I5,000) (IS,000) Tranafen out (100,000) (100,000) (100,000) Net cash flows from noncapital financing activitia (100,000) (15,000) 0 0 0 0 0 (115,000) 0 (115,000) Cazh flows from capital and related financing activities: Acquisitionandconswctionofcapitalacuts (309,9J0) (416,�42) (323,343) (1,050,015) (130,082) (1,180,097) Principal paid on revenue bonds (210,0�0) (210,000) (2I0,000) Interest paid on revenue bonds l25,833) (25,835) (25,835) Net cash flows from capi�al and related financial activities 0 0 0 (309,930) (4i6,742) (559,178) 0 (1,265,850) (t30,082) (1,4I5,932) j O Cash flows from invating activities lnterest on invutments 13,9�6 1.048 17,776 31,180 26.473 14.321 3.000 108,354 151,890 260.24d Netcashflowsfrominvestingactiviues IA,956 1,048 �7.776 31,180 26,473 14,321 3,000 108,3i4 151,890 260,244 Net increaze in cash and cazh equivalen�s 194,563 24,340 I86,900 349,44) 437,916 570,655 41,801 1,827,822 386,998 2,214,820 Cash end cash equivalents lanuary 1 801,99J 37,281 666,529 I.SS1.�08 682.184 343,221 84,862 4,1 i7,378 6,514,190 10,671,568 Cashandcashequivalents•December3l 5996,556 S61,621 S85S.429 51.890,7i5 51.140,100 5914,076 5126,663 55,98i,200 56.901,188 512,886,388 Reconciliation of opereting income to net cath T provided (used) by apereting activitiu: Operatingincome(loss) 5129,961 56,166 (5358,034) (5109,099) S313,885 E455,382 E41,523 5479,T84 (5294,683) 5185,101 Adjusunenls to reconcile operati�g income (loss) to net cash tlows from opereting activities: Depreciation 35,580 27,912 571,632 648,I1i 479,323 313,608 2?76,170 396,702 2,872,872 Changes in assets and liabilities: Decrcase(increace) in receivables 47,154 (77,196) 28,408 (59,593) 4,303 (2,837) (59,781) 5,723 (54,058) Decrease (increaae) in inventories 3,9i8 3,809 (7,669) (3,481) (3,383) 609 (2,774) Decrease (increaze) in prepeid expenses (8,224) 3,669 (13S) 10,632 5,959 5,939 increasc (decreese) in payabtes 60,357 166 18,349 7?,978 i2,674 12,436 (1 t,436) 165,524 60,026 225,550 Increace{decrease)in accrued expenses 3.705 (14) 8,208 d,470 362 (4,i50) 12,181 2,800 �4,981 Inercase (decrease) in accrued deferted revenue 18,310 11,407 ?9,719 29,7 V Othernonoperatingincome 7.I16 233 (5,745) 13,537 50.882 134,533 11.571 214,147 (5,987) 208,160 Totaladjusunenu 149,646 32.126 529,558 737;?96 534,300 660,330 (2,722) 2,640,534 659,873 3,300.40� Netcash provided by operating activities 52�9,607 E38,292 f171,524 5628.197 5848,185 51,115,712 538.801 53,120,318 5365,190 53,483,508 The accompanying notes are an integral part of thae financial statements, The eccompanying notes are an integrel part o(these financial statements. CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYIV CENTER, MINNESOTA NOTES TO FINANCInL STATEMENTS NOTES TO fINANCIAL STATEt�NTS December 31, 2003 December 31, 2003 i Nnte I S1IMMARV AF SIGNIF►CANT ACCOUNTING PnL7CtF4 Loeis Insuranee Cm� This group provides cooperative purchasing of health and Iife insurance benefits Cor The Ciry of Hrooklyn Crnter, Minnesota (the Ciry) was formed and operata pursuant to applicabfe approximately 45 governmental entities. The total of 2003 health and life insurance costs paid by Minnesota Iaws and statutes. The goveming body consists of a mayor and four City Council members the City was 3890,059. Complete financial statements may be obtained from Stanton Group elected at-large to serve four-year staggered terms. located at 3405 Annapolis Lane, Plymouth, Minnesota 55447. OTHER A. FINpNC1AL REPORTINC ENTITY The Aronkivn Cente.r Fire Deeartment Relief Ascnciation lthe Assncia[ionl The Association is organized as a nonprofit organization, legally separate from the Ciry, by its As required by accowting principies general ly accepted in the United States of America, the members to provide pension and other benefits to such members in acwrdance with Minnesota Ciry's financial statements include all funds and departments of the City and the Ciry•s component Statutes. [ts boazd of directors is elected by the membership of the Association and not by the units. The component units discussed below are included in the Ciry's reporting entiry becaute of City Council. The Association issues its own set of financial statemenss. All funding is the significance af their operational or financia� relationship with the Ciry. conducted in accordance with applicable Minnesota Statutes, whereby sWte aids flow to the Association, tax levies are detertnined by the qssociation end are only reviewed by the Ciry. The BLENDED CObiPONENT UNITS Assxiation pays benefits directfy to its members. The AssceiaHon may certify tax levies to Blended tomponent units, although legally separate, are in substance, part of the govemment's Hennepin County directly if the City does not carry out this function. Becaute the Association is operations; data from these uniu are combined with data of the primary govemment. fiscally independent of the City, the financial information of the Association haz not been included within ihe Ciry's tinancia! sWtements. (Sa Note 15C fqr disclosurcs rolating to the These additional units are the Economic Development Authority (EDA) and the Housing and pension plan operated by the Association:) The City's portion of the costs of the Assaiation's C Redevelopment Authoriry (HRA) in and for the Ciry of Brookiyn Center. pension benefits is included in the General Fund under public safery. Complete financial statements for the Association may be obtained at the City ofTices located at 6301 Shingie Creek 1 The goveming board for each Authoriry is the City Council. The Council reviews and appraves Pazkway, Brooklyn Center, Minnesota 55430. the HRA tax lery and the Ciry provides major community development financing for EDA and HRA activities. DebLC issued for EDA and HRA activities are Ciry general obligations, qlthough the EDA and HRA are legally separate from the Ciry, they are reponed az part of the City because B. GOVERNMENT-WIDE AND EUND RINANCIAI, STATEMENTS the goveming boards are the same. Comptete financial statements for the EDA and HRA may be obtained at the City offices locared at 6301 Shingle Creek Parkway, Brookiyn Center, MinnesoW The government-wide financial statements (i.e., the statement of net assets and the statement of 55430 changes in net assets) report infortnation on all of the nonfiduciary activities of the primary government and its component units. For the most part, the eftbct of interfund activity has been JO1NT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS removed from these statements. Governm¢ntalactiviries, which normally aze supported by taxes The City haz several agreementc with other entities that provide reduced costs, better service, and and intergovemmentat revenues, are reportEd separately from business-type activiriea, which rely additional benefiu to the participants. The programs in which the Ciry panicipates are listed to a signifcant extent on fees and charges for support. bebw and arnounu recorded within the curtent year's financial stateme�ts aze disclosed. The statement of activities demonstrstes the degree to which the direct expe�ues of a given l.ocal Covemmr.nt information Svsrems Association !LO(iIS� funMion or business-type acdviry are offset by program revenues. Direct expenses are those that This consonium of approximately 30 government entities provides computerized data processing are clearly identiftable with a speciHc function or business-rype activiry. Prog�om revenues and suppoct services to its members. LOGIS is legally scparate; the Ciry does not appoint a voting include 1) charges to customers or applicants who purofi use, or directly benefit from goods, majoriry of its board, and the Conaortium is fiscaily independent of the Ciry. The total amount services, or privileges ptovided by a given Cunctlon or business-rype activity and 2) grants and recorded within the 2003 financial sWtements of the City is 5439,311 for general services contributions that are restricted to meeHng the operational or capital requirements of a pazticular provided, plus 5253,938 in police software application upgrades allocated to the vazious funds function or business rype activiry. Taxes and other items not included among program revenues bazed on applications and/or use of services. Complete financiat sWtemenLS may be obtalned at ere reported instead at genera( reve�rues. the LOGIS offices located at 5750 Duluth Street, Gofden Valley, Minnesota 55422. Sepazate financial statemenCS are provided for govemmental funds and proprietary funds. Major individual govemmenta! funds and major individual enterprise funds are reported az separate colamns in the fund financial statemenu. i CITY OF BROOKLYIV CEIYTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL SYATEMENTS NOTES TO FMANCIAL STATEMENTS December 31, 2003 December 31, 2003 C. h1EASUREMENT FOCUS, BAS/S OF ACCOUNTING, AND FINANCIAL STATEMENT The /nfrarnucturs Consmrcrion Copita! Projects Fund was established ro account for the PRESEIVTATIOIV resources and expenditura required for the acquisiHon and construction of capitai facilities or improvements financed wholly or in part by special assessments levied against benefiteA The govemment-wide financial statements are reported using the econamic resources properties. measurement jocxs and ihe accrua! basis ojaccounring, as are the Proprie[ary Fwd flnanc[al The govemment reports the following major proprietary funds: sWtements. Revenues are recorded when earned and expensa are retorded when a liabilily is incuaed, regardless of the timing of related cash flows. Property taces are recogniud as revenues The Munmipa/ Liquor Fund accounts for the operations of the City's municipal off•sale in the year for which they are levied. Grants and similar items are recognized as revenue as soon liquor srores. as all eligibility requiremenu imposed by the provider have been met. The GoljCourse Fund aecounts for operations of Centerbrook Golf Course, a 9 hole par 3 Govemmmtal fund financisl starements are reported using th� cumentfinanclal �esources oourse owned by the City. measuremenrjocus and the modifred accrupl basis ojeccounting. Revenues are recognized as soon as they are both meuurable and available. Revenues are considered to be avallab(e when The 6arte Brown He�irage Center Fund accounts for the operation of a convention center. they are collectible within the current period or soon enough therea8er to pay I labiif�ies of the The Earle Brown Neritage Center is a pioneer farmstead that has been historically pceserved current period. For this purpose, the govemment considers all revenues, except �eim6ursement and restored as a modem multipurpose faciiiry. (ts convention center can host conferences, grants, to be evailable if they are coliected within 60 days of the end of the current fiscal period. hade shows, a�d conceAS seating 1,000 peaple in either banquet or theater style. The faciliry Reimbursement grants are considered available if they are collected within one year of the end of hosts many meetings, parties, weddings and receptions. the curtent fiscal period. Expenditures generally are recorded when a liabiliry is incurred, as under accrual accounting. However, debl service expendiwres, az well az expenditures related to The Warer Urifity Fund accountc for the provision of warer to customers. AdministraUOn, C compensated absences and claims and judgments, are recorded only when payment is due. wells, water storage, and distribution are included. N Property taxes, special azsessmenu, intergovemmental revenues, charges for services and interest The Sanitary Se�ver Fund accountt for the collection and pumping of sanitary sewage associated with the wnent Bscal period are all considered to be susceptible to accrual and so have I through a system of sewer Ifnes and lift sWtions. Sewage is treated by the Metropolitan been recognized as revenues of ihe curtent fiscal period. Only the portion of specia� acsessments Council Environmental Services whose fees represent about 75%of this'fund's axpenses. receivable due within the curtent flscal period is considered to be susceptible to accrual as revenue of the curtent period. All other revenue items are considered to be measureble and available only The Storm Orainage Fund accounts for the operations and improvements of the storm water when cash is received by the govemment. drainage system. It incorporates not only the storm sewer system, but also water structures The govemment reports the following major governmental funds: such aa holding pands and facilities to improve water quality. Fces are based upon the amount of water running off a property and vary with both size and absorption characteristics of the parcel. The Generaf Fund is the government's primary operating fund. It accounts for aU fnancial resources of the general govemment, except those required to be accounted for in anolher priVate-sector standards of accounting and finanetal reporting issued prior to December 1, 1989, fund, generally are followed in both the govemment•wide and proprietary-fund �nancial statements to the entent that those standards do not conflict with ar contradtct guidance of the Govemmental The Earle Brosvn TIFD7strict Specia( Revenue Fund has the authority to wllect tax pecounting Standards Board. Govemments also have the option of foliowing subsequent private- increments which are used for the historic restoration of the Earle Brown Fartn and for debt sector guidance for their business-rype activities and enterprise funds, subject to this same service paymenu of bonds which were issued for the same purpose. Iimitation. The govemment has elected not to follow subsequent private-sector guidance. Th¢ T/F District No. 3 Speciaf Revertue Fund has the authoriry to collect tax incrcments As a general rule the effect of interfund acNvity haz been eliminated from the govemment-wide which are used for various redevelopment projects within the City and for debt service financial statements. Exceptions to this generel �ule are uansactions that would be treated as payments of bonds which were issued for the same purposa revenues, expenditures or expenses if they involved extemai organi7ations, such as buying goods The Spectal Asaessment Bonds Debt Service Fund is used to account for the accumulation of and services or paymenu in lieu of taxes, are similazly treated when they involve other funds of resources for the payment of special assessment bonds. These bonds were sold to finance tho City of Brookiyn Center. Elimination of these charges would distort the direct costs and certain public improvements such as rcsidential strats and storm sewers or the provision of program revenues reported for the various functions concemed. services which are to be paid for wholly or in part from special assessments levied against benefited property. CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, !4[NNESOTA NOTES TO FINANCIAL STATEIvtENTS NOTES TO FINANC[AL STATEtv1ENTS December31,2003 December3I,2003 i Additionally, the govemment repons the following fund type: LEGAL COA�LfANCE BUDGETS /nterna! Service Funds account for compensated absences, health care insurance benefits The City follows these procedures establishing the budgetary data reflected in the financial and central garage services provided to other departrnents of the Ciry on a cost statemencs: reimbursement bazis. L In August, the Ciry Manager submiu to the City Council proposed operating budgets for Amounts reported as program revenues include I) charges to customers or applicants for goods, the fiscal yeaz commencing the following January. The operating budgets include services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and expenditures and the means of financing them. convibutions, including special assessmenu. Intemally dedicated resourees are reported ac 2. The County mails individual properry tax notiees showing the ta�ces that would result general revenues rather than ac program revenues. Likewise, general revenues include all taxes. from the proposed budgets af all taxing units to each properry owne� in November. 3. Public hearings are conducted to obtain taxpayer comments. Proprietary Cundt disdngulsh apernting revenues and expenses from nonopera�ing items. 4. The budgets are legally enacted with the passage of resolutions by the City Council in the Operating revenues and expenses generally result Bom providing servicu and producing and monih of December. delivoring goods in connection with a proprieiary fund's principal ongoing operations. The 5. Tha Ciry Council must authorize any transCer of budgeted amounts between departments principal operating rcvenues of the municipal liquor, golf counq Earl Brown Hetitage Center, within the General Fund. A vansfer of budgeced amounu withln individua! depamnents water utiliry, sanitary sewer, stortn drainage and stceet light enteryrise funds are charges to must be authorized by ffie Ciry Manager. cuslomers for sales and services. Openting expenses for enterprise funds include the cost of sales 6. Supplemental appropriations durinQ the ywr may only be made by ihe Ciry Council. and services, administrative expenses, and depreciatfon on cap(tal assets. Ail revenues and These amounts must be financed by funds from Ihe conUngency reserve set up in the expenses not meeting this definition are reported as nonoperatiog revenues and expenses. General Fund or by additional rcvenues. 7. All budget amounts lapse at the end of the year to the eMent they have not been When both restricted and unresuicted resources are available for an ellowable use, it is the expended or re-encumbered by City Councit directive in the foltowing fiscal year. W govemment's policy to use restricted resources first, then unrestricted resources as they are 8. Formal budgetary integration is employed aa a management control device during the needed year for all govemmental funds with the exception of Debt Service Funds and Capital Project Funds. Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is altematively achieved through general obligation D. BUDGETS bond indenture provisions. Budgetary control for Capital Projecu Fwds i: accomplished tivough the use of project controls and project-length budgets. The City Charter grants the Ciry Council full authoriry over the financial affairs of the Ciry. The 9. Budgers are adopted on a bacis consistent wieh accounting principles generally accepted Ciry Manager is charged with the responsibility of preparing the estimates of the annual budgec in the United States of America Annual appropriated budgets are adopted for sli and the enforeement of the provisions of the budget az specified in the Ciry Chartec Upon govemmental Cunds except for the project-length Capital Projecu Funds and Debt adoption of the annual budget resolution by the Council, it becomes the fortnal appropriation Service Funds. budget far Ciry operations. All budget adjustmenu must be approved by the Councii. Budgets 10. Budgetary control is maintained at the deparUnent level for the General Fund and at the for the Generol and Special Revenue funds are adopted on a basis consistent with accounting fund level for all other govemmental fuads that adopt annual budgets. principles generafly accepted in the United States of America. Budgeted expenditure I1. Budgeted amounts are as originally adopted, or as amended by the City Council. appropriations lapse at year end. Individual and aggregate amendments were not macerial in relation ro the original appropriations. Encumbrance accounting, under which purohase orders, contracLt, and other commitments for the expenditure of monies aze recorded in order to reserve that portion of the appropriatioq is not HUDGF.T VaRInNCES employed by the City beaause it is, at present, not considered necessary to assure effective budgetary control or ta facilitate effective cash management. For the year ended December 3l, 2003, expenditures exceeded appropriations of the Economic Development Authority and Ciry Initiativa Grant Special Revenue Funds by 573,077 and 3340,991,respeccively. CI'CY OF BROOKLYN CENTER MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FMANCIAL STATEMEN'IS NOTES TO FINANCIAL STATEMENfS December 31, 2003 December 31, 2003 E. CASH AND INVESTMENTS GOVF,RNMENT-Wf�E FINANCIAL STATEMENTS The Ciry raognizes properry tax revenue in the period for which the tazes were levied. Cash balances from all funds are combined and invested to the extent available fn cenificates of Uncollectible property taxes are not material and have not been reported. deposit, U.S. govemment ucurities and other securities authorized by State Statute. Inveslment COVERNMENTAL FI1ND FMANCIAL STaTEMENTS income is allocated ro the rcspective tunds on the basis of applicable cash balance panicipation by The City mcognizes property tax revenue when it becomes both measurable and available to each fund. Invesmients are stated at fair value, based upon quoted market prices as of the balance finance expenditures of the curtent period. In practice, curtent and delinquent taxes and State sheet date, Investment income is accrued at the balance sheet date, crediu raeived by the Ciry in July, Decembet and January ere recognized as revenue for the The Ciry provides temporary advances to funds that have insufficient cash balances by means of current year. Taxes collected by the Counry by December 31(remitted to the Ciry the Collowing an advance from another fund shown as interfund receivables in the advancing fund, and an lanuary) and taxes and credits not received at the year end are classified as delinquent and due interfund payable in the fwd with the deficit, until adequate resources are received. These from County taxes receivable. The portion of delinquent ta�ces not collected by the Ciry in interfund balances are eliminated on the govemment•wide financial statements. lanuary are fuliy ot1'set by deferted revenue baause they are not available to flnance curtent expendihves. For purposes of the statement of cash flows the Ciry considers all high�y Hquid investments with a maturiry of three months or less when purchased to be cash equivalents. All of the cash and H. MARKET VAI,UE HOMESl'EAD CREDIT investments allocated to the proprietary funds have original maturities of 90 days or las. Therefore the entire balance in the Proprietary Funds are considered cash equivalents. Property taxes on residential agricultural homestead properry (as defined by Sate Statutes) are partial ly reduced by market value homestead credit (MVHC). This crodit is paid to the Ciry by F. RECEIVABLES AND PAYABLES the State in lieu of taxes levied against homesuad properry. 'the State remits lhis credit through installmens each year. Tha credit is recognized as revenue by the Ciry at the time of collection. The City has rewrded this with property tau revenue. During the course of operations, numerous transactions acur behveen individual funds for goods I provided or services rendered. Short-term interfund loans are clusified aa "interfund I receivables/payables." All short-term interCund receivables and payables at December 31, 2003 i. SPECIAI. ASSESSMENT REVENUE RECOGNITION aze planned to be e�iminated tn 2004. Long-term interPond loans are clusified u"interCund loan reeeivableJpayable." Any residual balances ouutanding benreen the govemmental activities and Special assessments are levied against benefited properties for the cost or a portion of the cost of business-rype activities ere reponed in the govemment•wide ftnancial statements as "intemal special assessment improvement projecu in accordance with State Statutes. These assessmentt balances:' are wllecdble by the Ciry over a tem� of years usually consistent with the term ofthe rolated bond issue. Collection of annual insWllmenls.(including interest) is handled by the Counry Auditw in Property taxes and special azsessments have been rcported net of estimated uncollectible accountt. the same manner aa property taxes. Properry owntts are allowed to (and often do) prepay future (See Note I G and 1) Because utiliry bills are considered liens on propecty, no estimated installments without incerest or prepaymrnt penalties. unwllectible amounu are established. Uncollectible amounts are not material for other receivables and have not bcen reported. Once a special auessment roll is adopted, the amount attributed to each parcel is a lien upon that property until tull payment is made or the amount is detecmined to be excessive by the Ciry G. PROPERTY TAX REVENUE RECOGNITION Cowcit or court action. [f special assessments ere allowed to go delinquent, the property is subject to tax forfeit sale. Proceedi of sales from Wc forfeit properties are allocated flrst to the The Ciry Council annually adopts a tax levy and cettifies it ro the Counry in December County's costs of administering ell tex Forfeit properties. Punuant to State SWtutes, a property le lassessment date of each ear for collection in the followin shall be subjeat to a tau forfeit sale after three years unless it is homesteaded, agricultural or �"Y Y g year. The Counry is seasonal recreational land in which event the property is subject to such sale after five years. responsible for biiling and collecting all property taues for itself, the City, the local Schoal District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as rcceivables by the Ciry at that date. Real property taxes are payable (by property ownen} on May GOVERNMENT-W IDE FMAN(71AL STATEMENTS I S and October t S of each calendar year. Personal properry tares are payable by taxpayers on The City recognizes special �ssessment revenue in the period that the assessment rol! was adopted February 28 and June 30 of each year. These taues are wllected by the Counry and remitted to by the Ciry Cowcil. Uncollectible special assessments are not materiel end have not been the Ciry on or before July 7 and December 2 of the same year. Delinquent collections for reported. November and December are received the following January. The Ciry has no ability ro enforce payment of property taxes by property owners. The County possesses this authoriry. ;p re�� CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS NOTES TO FtNANCIAL STATEMENTS December31,2003 December31,2003 r COVERNMEMAL FUNp FINpNCI�. STATF.MENTS Properry, plant and equipment of the primary govemment, as well as the component units, is Revenue Bom special usessments is recognized by the City when it becomes meaturable and depreciated using the svaight line method over the following estimated usePol lives: available �o finance expenditures of the curtent fiscal period. In practice, curtent and delinquent special assessments received by the Ciry are recognized as rovenue for the curtrnt year. Special Paved streets 25 years assessments that are collected by the Counry by December 31 (romined to the Ciry the following Water and sewer mains and lines gg y�g January) and are also recognized as revenue for the wvent year. Al! mmaining delinqumt, Buildings and structures Z5 Y deferted and special deferred assessments receivabie in govemmental funding are compietety Wahr wells and storage tanks 25 years ofCset by defened revenues. Sewer lifl stations 25 years Street lighu and traffic ligh�s 15 years J. INVENTORIES Machinery and equipment 5-]5 years Departrnental equipment 5 yeazs GOVERN[„1gN7'pL FUNDS The primary gavernment dces not maintain material amounu of inventory within tha other M. COMPENSATED ABSENCES governmental Ponds Invenrories of govemmental funds are recorded as expenditures when consumed rather than when purchased. It is the City's poiicy to permit employea to accumulate eamed but unused vacation and sick pay PROPRIFTARY FUNDS benefits. AII vacation pay is accrued in the intemal service fund financial statements. A liability for thae amounu is reported in govemmental tLnds only if they have matured, for exarnple, ac a Inventories in the proprietary funds are valued at wst, using the weighted average method in the resui� of employee resignations and rctircments. In aocordance with the provisions�of Statement Municipal Liquar Fund and the first-in/first-out (FIFO) method in the other proprietary funds. of Government Accounting Standards No. 16, Accountin (11 The costs of govemmental fund type supplies are recorded as expenditures when purchazed. gjor CompensaJed Absences,�no liability is raorded for nonvesting accumulating rights to reeeive sick pay benefiLS. However, a liabiliry is recognized for that portion of aocumulating sick leave benefitt that is vested as severance pay. K. PREpp[D ITEMS Cerlain payments to vendors rettect costs applicable to future accountin N. LONG-TERM OBLIGAT[ONS as prepaid items in both govemmenbwide and fund financial statements. periods and are recorded In the govemmenawide financiai statements and proprietary fund rypes in the fund financial statemenu, long-term debt and other long-term obligations are reported as liabilities in the L. CAPITAL ASSETS applicable govemmental activities, basiness-rype activitia, or proprietary fund type statement of net aueb. Bond premiums and discourtts, aa weff as issuence costs, ere immaterial and are CapiW) assets, which include rp expensed in the year of bond issuance. P Peny, p�ant, equipment and infrastructure atset5 (e.g., roads, bridges, sidewalks, and similar items), are reponed in the applicable govemmental or business- [n the fund finenciai statements, ovemmental fund rype activities columns in the govemment-wide financial statements. Capital assets are defined b g tyPes recognize bond premiums and Y discounts, az well as bond issuance costs, during the cuRent period. The face amount of debt ihe govemment as assets with an initial, individual cost of more than $5,000 (amount not rounded) issued is reported es other 8nancing sources. Premiums received on debt issuances are reported end an estimated useful life in excess ofone year. Such asse�s are recorded at historical cost or as other tinancing sources while discounts on debt issuances are reported az other financing uses. estimated hismrical wst if purchased or constructed. Donated capital azsets are recorded az Issuance wsts, whether or not withheld Rom the acNal dtbt proceeds received, are reported as estimated fair market value at the date of donation. debt service expenditures. The costs of normal mainrenance and repairs that do not add to the value of the azset or materially extend asseu lives are not capitalized. O. FUND EQUITY Major outlays for capiWl assets and improvements aze capitalized as projects are constructed. In the tUnd financial statements, govemmmtal funds report reservations of fund balance for Interest incurted during the conswction phase of capital assets of business•type activities is included as part of the capiwlized value of the asseu consweted. For the year ended December amounts not appropriable for expenditure or legally segregated for a speci6c tuture use. 31. 2003, no interest waz capiralized in connection with conswction in progress. Designated fund balances represent tenutive plans for future use of financial resowces. CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEIdENTS NOTES TO FINANCIAL STATEMENTS December 31, 2003 December 3l, 2003 P. INTERFUNDTRANSACTIONS 2�. EXPLANATIONOFCERTAIND(FFERENCESHETWEENTHEGOVERNMENTAL F(1ND STATF.MF.NT OF RF.VFNUF.S EXPENDITURES. AND CHANGES IN FCMp BAI.ANCES AND THE GOVERNMENT-W IDE STATEMENT OF ACTiVITIES Interfund services provided and used are accounted for u revenues, expenditures or expenses. Transactions that constitute reimbursemena to a Cund for expenditures/expenses initially made The govemmenul fund swtement of revenues, expenditures, and changes in fund balances from it that are properly applicable to another fund, are recorded as expenditures/expenses in the includes a reconciliation behveen net changes tn fundbalances total governmenral funds reimbursing fund and as reductions of expenditures/expenses in ihe Nnd that is reimbursed. and changes in net assefs ojgovernmental activi�ies as reported in the govemment-wide [nterfund toans are roported as an inrerCund loan receivable or payable which offsets the movement of cash benveen funds. All o�her interfund transactions are repotted as transfers. statement of activities. One element of that reconciliation explains that "GovemmenWl funds report capital outlays az expenditures. However, in the statement of activities the cost of those assets is a�located over dfe'v estimeted useful lives and reported as depreciation Q. USE OF ESTIMATES expense." The details of this 5323,269 difference are as follows: The preparation of financial statemenu in accordance with generally accepkd accounting Capital ouNay 51,87Q441 principles (GAAP) requires management to make estimates that affect amounts reported in the Depreciation expense (1,547.172) financial sutemen�s during the reponing period. Actual resulu could difTer from such estimates. Net adjustment to increase net changes in fund baiances total govemmental funds to arrive at R RECOIVCILIATION OF GOVERNh1ENT-�YIDE AIVD FUND F[NANCIAL changes in net assets ofgovemmental activities 5323,269 C STATEMENTS 1. EXPLANATfON OF CERTAIN DfFFERENCES BFTW EF.N THE G VERNMF.NTAL Another element of that retonciliation SWtes that "Revenues in the Statement of Activities �JND RAC.ANCF SHEET AND THE GQV ERNMF.NT-W IDE STATHMENT OF NET that do not provide current financial resources are not reported az revenues in the funds." The nSSETS details of this (5402,575) difference are as follows: The govemmentai fund balance sheet includes a reconciliation benveen fi�nd balance rotal General properry taxes deferced revenue: governmentalfi�ndr and net asse�s —governmental acrivitfes az reported in the govemment• At December 31, 2002 ($329,237) wide statement of net assets. One element of that mconciliation expiains that •`long-term At December 31, 2003 391,585 liabilities, including bonds payable, aze not due and payable in the current period and therefore are not reported in the funds." The details of this S U,006,538 difference are as Taz increment taxes defetted revenue: follows: At December 31, 2002 (149,721) Bonds payable S I6,930,000 At December 3l, 2003 288,475 Accrued interest payable 76.538 Special assessmenu deCerted revenue: Net adjustment to reduce fund balance total At December 31, 2002 (4,083,t71) govemmental funds to arrive at net assets At December 31, 2003 3,49[,494 govemmen[al activities 517,006,538 Other deferred revenues: At December3l, 2002 (48,412) At December 31, 2003 36,431 Net adjustrnents to decreaze net changes in fund balances total govemmental funds to azrive at changes in net assets of governmerttal aativities ($402.5751 CtTY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER MtNNESOTA NOTES TO FINANCIAL STATEMENTS NOTES TO FMANCIAL STATEMENTS December 31, 2003 December 31, 2003 Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds, Balances at December 3 t, 2003 are as foltows: ieases) provides current financial resources to govemmental funds, while the repayment of principa! otthe long-term debt consumes the cumnt financial resources ofgovemmental Carrying Bank funds" Neither transaetion, however, has any effect on net assets. 'fhe details of this Amount Balance 52,015,000 ditterence aze as follows: 1) Insured or wllateralized by securities held by the Ciry Debt issued or incurred: or its agent (n the City's name. 5581,506 $528,982 Issuance ofgeneral improvement bonds (SI,205,000) Principal repayments: 2) Collateralized with securities held by the ptedging General obligation debt 705,000 instiNtion wst department in the City's name. General improvement bonds 870,000 Taz increment bonds 1,645.000 3) Uncollateralized or collateralized with securities not in the Ciry's name. Net adjustment to increase net chareges in fund balances total govemmental funds to Totals 5581,506 5526,982 arrive at changes in net atsets of C govemmental activities 52,015,000 MVFSTMEMS Minnaota Statutes authorize the Ciry to invest in the following: Note 2 DfiPOSIT3 AND INVF_STMF.NTS DF.POSITS a) Direct obligations or obligations guazanteed by the United States or its agencies, its inswmentalitia or organirations created by an act oFcangress, excluding mongege-backed securiiles defined ac high risk. In accordance with Minnesota Stamtes, the Ciry maintains deposits at those deposirory banks authorized by the Ciry Council. pll such deposirories are members of the Federal Reserve System. b) Shazes of investrnent companies registered under the Federat Imestrnent Company Act of 1940 and whose only investrnents are in securities described in (a) above, generaf obligation tax•exempt Minnesota Stawtes require that a0 City deposiu be protected by insurance, sumty bond, or collateral. securities, or repurchau or reverse repurchase agreements. The market value of collakral pledged must equal 110 0 of the deposits not covered by insurance or bonds. c) General obligations of the Stete of Minnesota or any of ics municipalities. Authorized collateral includes the legal imestrnentt described below, u well as certain first mortgage d) Bankers acceptance of United States banks eligible for purohase by the Federal Reserve System. nous, and cenain other state or local govemmrnt obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the Ciry Treazurer or in a financial institution e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the other than that fumishing the collateral, highest quality, and maturing in 270 days or less. Repurchase or reverse repurchase agroements with banks that aze members of tfie Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. govemment sewrities to the Federal Reserve Bank of New York; ceRain Yvtinnesota securities broker•dealers; or, a bank qualified as a depositoc CI'IY OF BROOKLYN CENTER, bfINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FMANClAL STATEMENTS NOTES TO FMANCIAL STATEMENTS December 31, 2003 December 31, 2003 Balances at December 31, 2003: Govemmental fundsreport deferred revenue in connection with receivables for revenues that aze not considered to be available to liquida[e liabilities of the curtent period. Govemmenul Cunds aiso defer Carrying/Fair revenue raognition in connection with resouras that have been received, but nat yet earned. At the end Custodial Credit Risk Cateaon Value of the cumnt fiscal year, the various components of deferred revenue and uneamed revenue roported in the Sewrities Tvp_ I 2 3 Amount govemmental funds wero as foltowsc Unavailable Uneamed Federel agencies S31913,022 S 3 S3I.913,022 ToWls 531,913,022 SO SO 31,913,022 Delinquent property taxa receivable (Gener�l Fwd) 5341,J64 T Deiinquent property taxu 2ceivable (Speeial Assessment Bonds) 10,267 Investment pools 3,962,926 Delinquent property taces reeeivable (Nonmajor Funds) 39,954 Deposiet 581,506 Delinquent tax increment colleotions (Earl Brown TIF Diarict) 115,850 Total deposits and investments 36,457,454 Delinquent tax inerement colleetions (Tlf Distriet M3) 192,625 Special nssessmrnts not yet due (Specia! Assessment Bonds) 7,092,247 Petry cash and change 4,375 Special asussmenu no� yet due (Speciat Assessment Contwction) 799,227 Totals Grant drewdowns prior to meeting all eligibiliry requirements (Nonmajor Funds) 19,455 536,461.829 Fees «ceived but unearned (General Fund) 71 Fece received but weamed (Special Assessment Conswetion) J6.360 The Ciry's (nvestments are categorized above to give an indication of the level of custodial credit risk Toral deRrteNunearned revenue for govemmemal Ponds 54.207.965 S19.555 assumbd at year end. Category I includes invatmenLS that ere insured or registered or for which the 0� securities aze held by the Ciry or its agent in the Ciry's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparry's wst department or agen[ in the City'S name. Caregory 3 inciudes uninsured and unregistered investments for which the Note J CAPITAL ASSETS securities are held by the counterparry or by iGS trust department or agent but not in the Ciry's nama Capital asset activiry for the year ended December 31, 2003 as previously reported was as follows: &pm s Note3 RECEIVABLF.S r.t..nc........i a,�w n�o-e „w�.e sa:. i...�. Q.,e,. n,w� Significant rcceivables balances not expected to be collected within one year of December 31, 2003 are as ce.��a�.wz follows: c��a..�.�we�;e �,+a nas�.sa s- s�se�.sa s. s �s+s.eool nao�sa cm,w.ie�mwww �.�se1et i.iso�as m�bio �i,�w.ue� onsx ufuwL TailaPWtve4m0eiei[epeevN �av�en �.�wwoe �us��o o Yz15n f�1af.�Ob� l�l�Jl] E+r4 Spuu1 Spctia� &owTli Oimi[� .4emavt AYein+c�v W��e Sriury Sbm Nwverya C�iWan�Kh�N�� G�a9 D�� He.f emd� Cwwrv�tio� Utiiln Se.0 pr��uee iwe� Tny B�IIGspWisqmrmvn usss.o�o iefn.oro �ai.�:i ��.wt.wt ]906.111 7,906.111 )JSO 7,9W.i61 Sprsidssumnnarcaiv�ble t f .S S;10p.391 1i91.020 fIlI.3i0 S}.I2� 53.910 S fi,)93,061 ��°d' )13.f16 Nf.116. !Al6.111 �9.69] 6,711012 Rl:�µeqppp[MLL�n II?09 $pqp 161�S6T1 16W6i1 It)Ilf/ �l)1[991 Dtlip�r�u�vsns.a� 116.i56 I)1,Gif IOi91 II.ItO Tedq:Namr,leykpaiW ��.�+snsv �ausei� �rm.ite ��a�n xw�� o us�v�a Wnrtui��pk IOSA)� 219.�11 ].Ittolt t.i9).11E Sli�.lU JII�,IM SI1i673 SS.f00391 p93.010 Sit1310 SL]E� i��.910 f2191339 SS,Jfl.a55 Boibieqvd'.,. 3.9N,63E 7,991.651 6f�y93 t,61/71f Mimpevm�mt 1.6H.661 1.6µ66i IIS711 I.tbI.i16 D�pw�diqupnm� I]O.wl lA.ai .)S1t.i�I lI.611 f.114W $QtN 1.9t1�6S ).9�1.45 1Y610 Ll11t�1 TWlattuieulLM6.pw o illfl�x6 11.191.�i6 I]I�.x�l Is�),In a 1�9xix�1 TqalapWanmMinydeqseiYN•M tt.nasSf ]EbKf i�W1f1 ti]a]N SbQb 0 a).601111 ......_.I�ci�iuqppWtusv.ew S]).Dif161 SLIV).]01 tf9]n.06i fiS)tlb f1AlJf15 ISI.113.1061 tll.119.661 CITY OF BRpOKLYN CENTER, MINNESOTA C[TY OF BROOKLYN CENTER, D11N1VESOTA NOTES TO F[NANCIAL STATEMENTS NOTES TO FMANCIAL STATEIv1ENTS December31,2003 December31,2003 i Beginning E�i� CONSTRUCTION COVtMITMENTS PrimaryCorernment Balanae Increazes D<e¢aze Balant¢ eucinasrype ac�i�i��es: At December 31, 2003, the City had construction project contracts in progress. The commitments Cayt�a� asuu, ooa bn�g depr«iazea: related to the remaining contraet ba�anees are summarized as follows: 53,197,34? S S 53,197,342 Land improvements 368.088 368.088 Contract Remaining ToW capiui asscb, not being ticprceiated 3.565.430 0 0 3.565.430 Project Project Amo4n[ COmmltmGnt Capilal assets, being deprcciated: euildingsandimprovement� 17,328,96e 66,714 200? H2ppyH011owStreets 51,347,579 S114,0(3 Deparonent cquipmen[ 617,505 17.395.678 Mainsendlines 61J,505 37.157.768 9H3.299 3g,�y�,p6� Tonl wpital nsxts, Leing depraiated 53.104.23� 1.050.013 0 56.154150 NateS OPF.RATIN(:LEASER Less aotumulamd deprttiation for: euiiaings a,d improvemenu a,5zi,365 753,a80 5,174,8a5 The City leasa space for its municipal liquor stora. The leases are both ten•year leases and began in 2000 Departmentcquipment ]12,961 66,678 ?gg�2 Mains and iina ia.75o.565 �.a56.0i1 is gp6 S�g and 2003. Both teases have options for a ten-year extension. The leases provide for a minimum monthly To�ai accum�laied aepr«iaeion t9.09a,895 12�6.n0 0 1i,37i,o65 base rent payment, plus a pro-rata share of wmmon area expenses. In addition, they requira additional lease paymenta if agreed-upon revenue thresholds are attained. These Ieaces may be cancelled at the Ciry's C ToW capiul uute being depraiated Mt 36.009J4Z f I276.ISA 0 3a]A3.1l5 option if ihe City ceases liquor operations. ToG� rental expense under the lease agreements for the years ended December 3l, 2003 and 2002 was S142,730 and 5158,702, res ectivel Future minimun5 rent �p Bwines�.ryPe xuv�iies caPiui azscu. na 539,574,77t (SI126.IS71 SO E38.3es.6�s payments under the wrrent agreements are as follows: P Y Depreciation expense was char ed to functions/ ro rams of the rim Total P S p ary govemment as follows: Year Minimum Govemmental activities: Endinq Rents Generalgovemment S83,334 Z004 SI84,7t0 Public safety 396,434 2005 188,897 Publicworks 2006 t93,530 821,285 Communiry senices 133,784 Z�� 193,530 Parks and rec�eation 2008 193,530 I12,335 2009 193,530 Capital assets held by the govemments internal secvice Cunds are charged to the various functions based on their 2010 136,158 usageoftheauets 596.702 Z�>> 93,360 Totai depreciation expense govemmental activities S2.143,874 20�2 93,360 2013 93,360 Business-rype activities: S1,563.965 Municipa� liquor Cund 535,580 Golf course fund Z��9�2 Earle Brown Heritage Cenrer Fund 571,632 Water utiliry fund 648,115 Sanitary sewer fund 479,323 Sto�m drainage fund 513.608 Tota1 depreciation expense business•Type activities 52,276,170 CI1'Y OF BROOKLYN CENTER, btINNESOTA C1TY OF BROOKLYN CENTER, MINNESOTA NOTES TO FMANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS December31,2003 December31,2003 Note 6 LONG-TERM DEBT Annual debt service requirements ta maNrity for long-term debt are as follows: The Ciry issues general obiigation bonds and equipment certificates to provide funds for the acquisitian �ene� obiiaa�ion eones Tax �ncremen� aonae G.O. tmoro�emen� 9onds end construction of major capiwi facilities. The reporting entiry's long-certn debt is segregated benveen the Yar Enatng Govemmenral Acuvitia Govemmemal Activitiw Govemmenlal Adivities Deeember 71 Prineivai Inlerat Prinoioal (nterul Princioal Imcrat amounts to be repaid from govemmental activities and amounts to be repaid C�om business•rype activities. 200d E740,000 E292,317 E1,775,000 5237,302 51,005,000 5218,457 GOVERNMENTAL ACENIT1ES 2005 TI5,000 260.374 360,OW 171,122 990.000 178,59B Y006 8I0,000 226,407 360,000 147,362 880,000 13l,451 As of December 31, 2003, the long-term debt of the financial reporting entiry consisted of the 2007 Sa0,000 196,6n0 385,000 122,58a 790,000 103,034 following: 2008 565,000 171,219 385,000 96.694 615,OOa 7;,Ia7 2009 595,000 144,I00 400.000 �0,200 510,000 49.538 Finil 1010 625,000 115,274 415,000 42,694 395,000 30,052 i�aaa n�.w;y a;q�w Payab7e x0ii 65i.000 84,7i0 a25,OW t4,3a4 ia0,000 l6.336 rt.m aie one iv�e �aniro� 20t2 690.000 32.257 175.000 7.748 eenmlobfg.rionBonm: 2013 723.000 i7.762 105.000 2,100 RefwAin`51ak•AidSvmBondt 7.sss:a.00x ivui99e +iiROO6 sLSes,000 ssas.000 To�al 56,720.000 SI .561.056 54.505.000 5902.3W 55,705,000 S8I7�_I 7olueWFirtlwldingBondt a.lOY.J.90'/. ILUI99] NIR013 t.9W.000 5.675.000 TonlGmerJObGyation8endti 9AB5.000 6.R0.000 0.0. Tu Inuemm� Boeds: r..iMRm<sieaworivsi �.�ri.s.ar,s vvissi viaow e.wo,aoo i,en,000 StormSewerRevenueBortds e w rwekr..�M,�,m¢o�mansss eoar.s.�ss unnsss v�aon ..seo.000 s.oea.aoo YearEnding Business-TvceActivitia N rewtu��e��M�eo�w iv.eio.000 �.sos.oao December3l Princioal Inrerest Q c.o. imPre.�Mi eaw: �ss�su�imv�o..�mgows a.iais.sai vinssa vvtoos a3s.aoo i�s,oao 2004 $220,000 518,250 issfsuu�imrto.�o��meow a.aai.a.sa� iinnsss viaae �eo.000 tw.00a i�oesu.aim��.�aeo�m �aw.s.�mi unnssa vi�oo� i,uo,000 sao,aao 2005 230.000 6.210 wo�sv�ntmpm�emm�eo�es �.aov.a.iox ivws9� v�aooe i.a�s.000 sio.000 Total 5450.000 524.460 iv�esu�nimvm��<��eo�m a.�ov..a.za. �vinssc v�noos i.oes.000 su,000 issvso-�aimP�,.��eo� a,iov.s.ari ivuws9 virsmo i,su,000 i.oso,wo :000su«�i�ro.��<mew�e, �,�ov.a.vov. ivin000 viaoi� ns,000 s�s.000 zao�so-<enmwo.�emeo�w, x.ean-a.�ox ivinaoi vin_o�x »o.000 as.000 zoo�SRaim�.�m�sow �.asr.a.009: virzoos v�no�s i.aos.000 i.zos.aoo TMJG,O.ImporemsntBpndf 9.�]0.000 5.]05.000 Tonl-EonEtEiMelleEnei� 29,565,000 16,9J0,000 c�aeww.ex�� py,eie �a�.u� TonlCiryin2sE�Mness.govcmmenula:tlNUes A9.563.000 f17.717227 BUSMESS ACTI V ITIFS, fiml Inu�a� Maouiry Origi'W P�yable R�xs Darc Datt Iswe 11/11/Ol G.O.Itevenue Boods: 199�StmmSe..e�NevenveBond� i.30Y.SA0^/. NVI99+ LIQ00! 51.630.00D f650.000 Tehlbwin�ui)yea<eviti<t 11,830.00� _5650.000 CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS NOTES TO FitJANCIAL STA'TEMEM'S December 31, 2003 December 31, 2003 CHANGE IN LON6•TE LIA9ILITIES Note S RESERVED/DESIGNATFD RLIND EOU[j� Long•term Iiabiliry ectiviry for the year ended December 31, 2003, was az follows: Fund balances and retained earnings in the various funds have been reserved or designated for the foliowing purposes: Beginning Ending p� y/�� Bdanu Additions Reductions Baiana One Year Reserved Fund Equity Govemmental activitla: Bonds payable: Generol obligazion bends 57,425,000 S Fund balanees: Tae incremem bondt (5705,000) 56,720,000 3740,000 6,150,000 (1,645,000) 4,505,000 1,775,000 Majorfunds: G.O.special assessmentbonds 5.3)0.000 I,205,000 (870.000) 5.705.000 1,0p5,000 General fund: Total bands payable 1g,9a5,000 1,205,000 �(3,220,000)' 16,930,000 3,520,000 Prepaid items $5.309 Compensa[ed abzences 7149t4 618JI3 (550.,400) 163227 783127 Advances to other funds 105.074 Tout govemmene ac�iviry Total general fund �p,;g; long-tertnliabililies f19.659.91a f1.823.713 _(53.770.400) 517.7U.227 f4,303.227 Businastype ectiviiiu $peCial Asse55ment BondS: Swrm sewer revenue Conds 5660.000 SO_ (5210,000) 5450,000 �yp,ppp Debt service 2,976,874 C .----j NonmajorFunds: N For the govemmenfal activities, loans payable are generelly liquidated by the general fund. Loan receivable 2,188,038 Compensated absences are liquidated by the Intemal5ervice Fund. Debt service 2,344.403 Total nonmajor funds 4,532,441 All long-term bonded indebtedness outstanding at December 3l, 2003 is backed by the full faith and credit of the Ciry, including improvement and revenue bond issues. Delinquent assessments Total govemmental funds 57.619,698 receivable at December 31, 2003 totaled 587,807. Daignated Fund Equity Note 7 CONDUIT DEBT OBLIGATIONS Major funds: From time to time, the City hu issued Housing Revenue Bonds and Indust�ial Revenue Bonds to provide General fund: azsistance to private secror entities for the acquisition and construction of housing, industrial, and Working capital 56,031,077 commercial facilities deemed ro be in the public interest. The bonds aze secured by the properry financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the TIF Disvict #3: bonds, ownership of the acquired facilities vansfers to the private sector entiry served by the bond issue. Statutory housing obligation 1,769,895 Neither the Ciry, the State, nor any political subdivision thereof is obligated in any manner for the repayment ofthe bonds. Accordingly, the bonds are not reponed as liabilities in the accompanying Tofal govemmental fwds ��,gpp,q72 financial statements. As ofDecember 31, 2003, therc were six series of Housing Revenue or Industrial Revenue Bonds outstanding, with an aggregate principal amount payable 528,650,000. Several variable debt issues are also outstanding. C[TY OF BROOKLYN CENTER, MINNFSOTA CITY OF BROOKLYN CENTER MINNESOYA NOTES TO FINANCIAL STATEIvIENTS NOTES TO FMANCIAL STATEMENTS December31,2003 December3l,2003 Nnte 9 INTERFUND RECEIVABLES/PAYABLF.S. LOANS AND TRA S ER [nterPond transfers: Individual fLnd interf�nd receivable and payable balances at December 31, 2003 are as follows: Transfer In Transfer Out Due Prom Due to Govemmenwl Funds: Fund Other Funds Other Funds Major Funds: GrneralFund S $2,194,655 Major Funds: Earl Brown TIF District 653,000 Tff District H3 51,043,323 TIF Disvict No. 3 548,000 Earl Brown TIF District 1,043,323 Special Assessment Bonds 259,079 Infrastmcmre ConsWCtion 480,000 Nonmajor Govemmental Funds: Nonmajor Funds 2,964.430 207.854 Capital Reserve Emergency Fund 158,933 Totai govenmenul funds 3.703.509 3.603,509 Municipal State Aid for Construction Fund 158,933 Proprietary Funds: Total 51.202,256 51,202,256 Encerprise Municipal Liquor 100,000 G Advances to Advances From Total 53,703.509 53.703,509 N N Fund Other Funds OtherFunds Major Funds: General Fund E105,074 g Interfund transfe�s allow the City to allocate financial resources to the funds that receive benefit from Earl Brown TIF District 698,143 services provided by another fund or to provide additional capita� and infrastructure funding. All of the InGuvucmre Constructlon 709,969 Ciry's interfund transfers fall under that category. All of the 2003 transfers are considered routine and Goif Course 885,000 consistent with prevlous practices. Non-Major Funds: Capital Emergency Reserve Fund 709,969 Capital Improvemenrs Fund gg5,ppp Municipal State Aid for Construction Fund 593,069 52.293,112 52,293.I12 The above balances are not expected ro be eliminated within one year of December 31, 2003. CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BAOOKLYN CENTER M7NNESOTA NOTES TO FINANCIAL STATEMENTS N07'ES TO FINANCIAL STATEMENTS December 31, 2003 December 31, 2003 i Note 10 LEGAL DEBT MARGIN Note 12 f.ONTINGENCiF.S. SUBSE�UR�NT EVENTS AND COM1IMITMENTS The City is subject to a sWtutory limitation by the State of Minnesota for bonded indebtedness payable A. ARBI'fRAGE REBATE principally from property taxes. The Ciry of Brooklyn Center's legal debt margin for 2003 and 2002 is computed at follows: ?he Tax Reform Act of 1986 requires govemmental entitles to pay to the federal govemment income eamed on the proceeds from �he issuance of debt in excess of interest cosu, pending the December 31, expenditure of the borrowed funds. This rebate of interest income (known az arbitrage) applies to z003 2002 govemmental debt issued after August 31, t986. Market value (after fiscal disparities) $1,840,115300 SI,673.812,000 The City issued grearer than SS million of bonds in the ywrs I99I, 1992 and 1997 and thereforo is cequired to rebate excess investment income relating eo these issues to the federal govemment. Debt limit (2% ofMarket Value) 536.802,306 The extent ofthe City's liabiliry for arbivage rebates on the remaining bond issues is not 533.476,240 determinable at this time. However, in the opinion of management, any such liabiliry would be Amount of debt applicabie to debt limit: immateriai. Totalbondeddebt S17,380,000 519,605,000 Less: Special assessment bonds (5,705,000) (5.370,000) B. LITIGATION State Aid Street Bonds (845,000) .(1,100,000) Tax Increment Bonds (4,505,000) (6,150,000) The City is subject to certain legal claims in the normal course of business. Management does not Utiliry Revenue Bonds (450,000) (660.000) expect the resolution of thae claims will have a material impact on the Ciry's tinancial condition or results of operations. Total debt applicable to debt limit 55.875.000 56325.000 Le al debt mar in C. FEDERAL AND STATE FUNDS g 330,927,306 $27,15I140 Amounts received or rcceivable hom fedeml and state agencies are subject ro agency audit and adjustment. Any disallowed claims, including amounLa already collected, may constitute a liabiliry of the applicable funds. The amount, if any, of funds which may be disallowed by the agenctes cannot be determined at this time although the Ciry expects such amounts, if any, to be Nete I1 DEFlCIT FUND BALANC�S immateria{. A deficit fund balance ezisu at December 3I, 2003 in the following fund: Major Funds: D. TAX INCREMENT DISTRIC7'S Earie Bro.m TaY Increment Financing Disvict: The City's tax inerement districes are subject to review by the State of Minnesata O�ce of the Unreserved deficit tund balance 51,685,368 State Audiror (OSA). Any disellowed claims or misuse of tax ineremants could 6ecome a liability of the applicable tund. Management haz indicated thatthey are not aware of any instances of noncompliance which would have a material effect on the financial statements. The deficit is being funded through internal borrowing and will be repaid Rom &ture surplus tax incrcments. E. PROGRAM COMPLIANCE Federal progam activities are subject to financial and compliance regulation. To the extent that any expendiwres are disallowed or other compliance features are not met, a Iiability to the respective grantor agency could result. CITY OF BROOKLYN CENTER, MINNESOiA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS NOTES TO FINANC(AL STATE(�NYS December 31, 2003 December 31, 2003 F, GRAfVTS Note 13 RiSK MANAGEMENT The Ciry approved grants in the amount of $500,000 to Boca Limited ParMership. The grant The Ciry is exposed to various risks of loss related to torts; theR of, damage to and destruction of assets; requires repayment if cettain requirements are nat met. In tum, the Ciry would be required to erron and omissions and natural disasters for which the City carries commercial insurance policies. The rewm the funds to Hennepin Cowry. City retains risk for the deducNbte poRions of the insurance policies. The amount of these deductibles is considered immateriel to the financial statements. G. SUBSEQUENT EVENTS There were no significant reductions in insurance from the previous year or settlements in excess af insurance coverage for any of the past fhree years. On April 4, 2004 the City sold nvo new bond issues; 55,045,000 General Obligation Police and Fire Buiiding ReCunding Bonds, Sertes 2004A and 52,470,000 Taxable General Obligation Tax Note ld POST-F,MPLOYMF.NT HEALTH CARE BENEFITS ]ncrement Rtfunding Bonds, Series 2004B. In January 2004 the Ciry opened a second municipal liquor store. The City hat provided posbemployee health care benefits, as per the requirements of the City Council resolution, for certain retirees and the(r dependents since 1986. Eull time employees have the optfon of retaining membership in the Ciry's health insurance plan for which the Ciry wili pay the single person H. CONTINGENT LIAB[LITY premium until sueh time at the retiree is eligible for Medicare coverage or at age 65, wMichever is sooner. If the re�iree desires to continue family coverage, �he additional cost for family coverage shall be paid by The Ciry entered into nvo limited tax increment notes with developers whereby the City shatl pay the retiree to the Ciry. There are nvo methods whereby an employee can qualify under this program. First, the developers the lesser of the scheduled payment or available tax ineroment. Nhether a the employee, on the date of his/her retirement, must meet eligibiiity rcquirements for a fuil retirement N annuiry under PERA (Note 15A) without rcduction of benefits because of age, disabiliry, or any other payment will occur and if so, the amount of the payment(s) are uncertain since all payments are dependent on the City receiving tax increment from the developer's project. As such, this liability reacon for reduc[lon. In add(tion, the employee must have been employed full time by the City for the last has not been recorded in the financial statemencc. A schedule of the notes outstanding at ten consecutive years prior to the effective date of retirement. Additionally, employees who are retiring December 3 t, 2003 is as follows: after twenty-five years ofconseoutive service with the City and are eligible to receive a pension from PERA shall have the option of retaining memberohip in the Ciry's health insurance pian for which the Original 19J3I/2003 Interest Maturity employee will pay the prcmium until such time as the retiree is eligible ro receive a fu1�-retirement annuiry Note PrinciDal Balance Rate Date under PERA or PERA police. At that time, the City will pay the single-person premium until such time as the rctiree is eligible for Medicaze coverage or at age 65, whichever is soonec Employees pazticipate in this program on a voluntary basis. Twin Lakes business Park 51.000,000 S S.pO% 8/1l2003 Twin Lakes business Park 2,169,936 2,113,429 8.00% As of December 3 t, 2003, 11 emptoyees currently participate t� this progrem. The oost of Ciry paid hwlth care premiums for the years ended December 31, 2003 and 2002 was 538,615 and 525,896, respectively. •No maturiry date is set. Payments will continue until the principal is paid, or for 10 F�nd liabilities are paid on a pay-as-you-go basis with investment eamings of the Fund. The SI,547,235 years, whichever comes first. raorded as a liability is not an actuarfally determined amount, but the Ciry's best estimate of the future liabiliry. The liabiliry will romain unchanged wtil a thorough analysis of fuwre liabilities is perfortned. t CITY OF BROOKLYN CENTER, MINNESOTA CITY OF BROOKLYN CENTER, M1tINNESOTA NOTES TO FINANCIAL STATEMENTS NOTES TO FINANC[AL STATEMENTS December 31, 2003 December 31, 2003 i I Note 15 DEFINED BF.NEFIT PENSInN PI,,ANS ST�EWID� The City's conUibuiions were equal to the contractually requirod conhibudons for each year as set A. STATEWIDE. pERA by state statute. PLAN DESCR[PTfON B. PENSION PLAN BROOKLYN CENTER E1RE DEPARTMENT RELIEF All full-time and certain part•time employees of the City are covered by defined benefit plans ASSOCIATION adminisrered by the Public Emp�oyees Retirement Association of Minnesota (PERA). pERA PLAN DF.SC RIPTION adminisrors the public Emplayces Retirement Fund (PERF) and the Public Employees Police and Fire Fuad (PEPFP) which are cost-sharing, multiple•employer retirement plans. These plans are The City confributes to the Brooklyn Center Fire Department Relief qssociation (ihe Association) established and administered in accordance with Minnesom Sm�ute, Chapters 353 and 356. which is the administrator oFa singie employer retiroment system to provide a retirement plan (the PERf inembers belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members P��) �o volunteer firefighters of the Ciry who are members of the Association. The Association ere covered by Sxial Security and Batic Plan members are not. AII new members must participate in issues a financial ceport which is available at Ciry offices. the Coordinated plan, All police officers, firefighters end peace officen who qualify for membership FtINDMG POUCY AND ANMIAL PBNS[ON COST by statute are covered by the PEPFF. PERA provides rctiremrnt benefits es well as disabiliry benefiec to members, and bene0ts to survivors The Ciry levies property tazes at the direc8on of and for the benefit of the Plan and pusa through C upon death of eligible members. Benefits are atabl{shed by State SWNte, and vest after three ears of sUte aids allocated to the Plan, all in accordance with enabltng State staNtes. The minimum tax Y levy obligation is the financial contribution requirement for the year less anticipated state aids. N credited servioe. The defined retirement benefits are based on a member's highest average salary for (n any five successive years of allowable service, age, and years of credit at termination of servica CON'fRIBUT[ONS The beneRt provisions s�ated in the previous paragraphs of Ihis section are current provisions and Totai contribuhons to the plan in 2002 were 118,508, of which 516,239 was levied by the City of apply to active plan participanu. Vested, tertninated empioyees who are entitied to benefits but Brooklyn Center and 5102,269 was from the State of Minnesota The actuazially detecmined are not receiving them yet aze bound by the provisions in effect at the time they last terminated contribution based on an actuarial valuallon performed atlanuary l, 2003 was 5111,821, which their public service. represents funding for norma! cost of S90,t48 and adminisvation of 521,673. Actual PERA issues a publicly availabie financial report that includes financial statements and re uired connibutions have continuW at higher levels to allow far a transition to a defined contribution su lement q plan in the future. T'hese higher payments are irtevocable and do not affect the level of future Ciry PD arY infortnation for PERF and PEPFF. That repon may be obtained by writing to PERA, convibutions. They do iLot constitute an asset of the Ciry. 60 Empire Drive #200, St. Paui, Minnesota, 55103-2088 or by calling (651)296-7460 or 1-800-652- 9026. 1'he information below is the most recent data available. F[1NDINf POL�Y_ Actuarial valuation date I/t/2003 Actuarial con method Entry age normal cost method Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These AmortiuNon method Level dollaz aznount amortized statures are established and amended by the state legislature. The City makes annual contributions on a closed bazis to the pension plans equal to the amount required by state statutes. PERP Basic Plan members and Remairting amortitation period �g y Coord(nated Plan members are required ro contribute 9.10°/ and 5.10%, respectively, of tbeir Actuarial assumptions: annual covered salary. PEPFF members are required to contribute 6.20%of their annual covered Investrnent rete of retum 7,5%compounded annually salary. The Ciry is required to convibute the following percentages of annual covered payroll: Discount rate for obligations 7.50% 11.78% for Besic Plan PERF members, 5.53% For Coordinated Plan PERF members, and 9.30% ProJected salary increases Not applicable for PEPFF members. The Ciry's conGibutions ro the Public Empioyea Retirement Fund for the Post retirement benefits None years ending December 31, 2003, 2002 and 2001 were 5309,337, 5299,954 and 5296,052, Infladon rate Not applicable respectively, The Ciry's convibutions to the Public Employea Police and Fire Fund for the years ending December 31, 2003, 2002 and 2001 wero 5257,234, S255,923 and 5239,799, respectively. CITY OF BROOKLYN CENTER, MINIVESOTA CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO FINANCfAL STATEWtENTS NOTES TO FINANCIAL STATEMENYS December31,2003 December31,2003 THREE-YEAR TREND MFORMATfON Nete 17 CHANGE IN ACCO[JNTING PRINCIPLE Three Year Treed Information in June 1999, the Govemmental Accounting Standards Board (GASB) approved Statement No. 34, Bastc Ftnancia! Staremems and Management's Diacussion and Analysis —jor State and Loca( Governmettls. Annual Percentage Net The CiTy is required ro implement GASB 34 no �ater than the year ended December 31, 2003. The Ciry Year Pension of APC Pension elected to implement GASB 34, including the infrastrusture—related portton, during 2003. The most EndinR Cost (APC) Conuibuted Obliqation signiticant effects of implementtng GASB 34 during 2003 aze as follows: l2/31/200 596,617 100% SO Government•wide finsncial statements are prepared using full accrual accounting for al� the Ciry's attivitia. 12/31/2001 1] 8,508 100°/, 0 InfraswcNre and construcHon in progress for govemmental activities hac been capitelized and all t2/31l2002 118,508 ]00% p capital assets are depreciated on the govemment-wide finencial statements. See Note 4 for restatement of prcviously reported amounu. SCHEDULE OF F[JNDMO PROGRESS The basic Pond financial statemenb focue on major tunds rather than fund rypes. A Management Discussion and Analysis (MD&A) is included as required supplementary Assets in Informazion. Excess of AcWarial Actuarial qctuarial (UnPonded) These and other changes are reflected in the accompanying financiel statements (induding nota to the financial sta[ements Valuation Value of Atcrued Accrued Fundtd N Date Assets Liabiliry Liability Ratio The Ciry also implemented the followtng pronouncements during 2002, which did not have a material i 12/31/2000 53,078,I63 52,457,135 S6Z1,028 125.30% eftectontheacwmpanyingfinancialsNatements; 12/31/2001 2,925,352 2,608,543 316,809 I i2.10% CASB Statement 36, Reeipient Reportingjor Certafn Shared Nonexehange Revemres— an 12/31I2002 2,54Q231 2,478,786 61,445 102.30% Amendment to GASB Statement 33 GASB Staterrtent 37, Bmic FinoncJa! Statemenu —and Managemen�'s piscusslon and Analysls jor Srate a+d Local Governmenrs: Omntbus an Amendment of GASB Statements No. 21 and RF.I.ATED PARTY INVESTMENTS No. 34. GASB Statemene 38, Cerrnln Financta! Statement Note Disclosures GASB Sutement 41, Budgerary Comparison ScHedv(ea— Perspecrive ��ererrces As of December 31, 2003, the Association held no securities issued by the Ciry or other re�ated parties. Note 16 FUND CHANGES The following funds were opened during 2003: Capital Projects: Street ReconsWCtion Fund Ttthnology Fund City Council Agenda Item No. 9b PRELIMANARY PSAP PROPOSAL City of St. Louis Park City of Golden Valley City of Brooklyn Center October, 2004 1. Location of PSAP City of St. Louis Park Police Station 2. Annroximate OperatinQ Cost Approximately $1,050,000 (2005 estimate) Assurnes the addition of 4 dispatch positions (with one being a lead dispatcher) Assumes each city pays t'he County for CAD/RMS/Mobile fees 3. Pronosed Oneratin� Cost Snlit (initial vear based on 2005 estimatel Brooklyn Center $375,678 Golden Valley $257,632 St. Louis Park $416,690 Formula for establishing the cost split is based simply on the number of 911 calls experienced for each community (used 2003 data from PSC; see below). It is proposed that the final split be based on a three year rolling 911 experience basis. SLP is open to further discussions regarding cost apportionment. COST SPLIT ANALYSIS Brooklyn Golden St. Louis Activit,y Center Valley Park Totals LOGIS CAD events (2003) 29,790 22,331 32,203 84,324 LOGIS Inquires (2003) 11,686 9,375 13,492 34,553 Total ICRs (2002) 30,315 20,546 33 84,661 Tota1911 calls processed (2002) 20,405 11,875 21,110 53,390 Part I& Part II Crime Reports (2002) 3,975 1,757 3,578 9,310 Total Fire/EMS runs (2002) 1,054 791 3,656 5,501 Totals of Activity Elements 97,225 66,675 107,839 271,739 Percentage of Total Activity Elements 35.78% 24.54% 39.68% 100.00% Allocation of 3 City Dispatch Services 375,678 25�,632 416,690 1,050,000 Projected budget for 2005 639,855 284,275 505,377 1,429,507 Projected savings for 1 year 264,177 26,643 88,687 379,507 Projected savings for 5 years 1,320,887 133,213 443,435 1,897,535 4. Start Un Costs Estimated at this time to be approximately $1.5 Million These costs include the transition to 800 MHz, an additional work station, hardware and software, licensing, training etc. 5. Pronosed Start Un Cost Snlit Brooklyn Center $536,700 Golden Valley $368,100 St. Louis Park $595,200 Formula for establishing this cost split is the same as that used for Operating Costs. The actual dollar amount will vary depending on the actual costs. Any grant funding received will off set the total estimated start up costs and the share for each city will be adjusted proportionately. It is assumed each city will pay for upgrades for its mobile computers, radios and equipment. 6. Timine It is estimated it will take approximately 12 months to undertake the necessary transition to allow for PSAP operations to be fully in place in St. Louis Park. 7. Governance Annroach Same as that currently used by Golden Valley and St. Louis Park 8. Other This offer is subject to approval by the city councils of St. Louis Park and Golden Valley and the negotiation of a contract between the three cities. Member introduced the following resolution and moved its S adoption: RESOLUTION NO. RESOLUTION ACCEPTING HENNEPIN COUNTY'S OFFER TO PROVIDE DISPATCH SERVICES WHEREAS, the City Council of the City of Brooklyn Center on August 1 l, 2003, by Resolution No. 2000-119, expressed interest in entering into discussions with the Hennepin County Board regarding Public Safety Dispatch Services; and WHEREAS, the Hennepin County Board, by Hennepin County Resolution No. 04- 8-3 90, offered to provide dispatch services to the ten cities in Hennepin County not currently served by Hennepin County dispatch services; and WHEREAS, Resolution No. 04-8-390 provides that eities must notify the I�ennepin County Sheriff, in writing, by November 30, 2004, of their commitment to receive dispatch services through the Hennepin County Sheriffs Public Safety Answering Point with out cost; and WHEREAS, such written election to convert to the Hennepin County Sheriff's Public Safety Answering Point at no cost must be done by November 30, 2004; and WHEREAS, the City Council of the City of Brooklyn Center wishes to acce t P Hennepin County's offer to convert Brooklyn Center's Public Safety Answering Point Services to the Hennepin County Sheriff's offer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the City Manager be and hereby is authorized and directed to notify the Hennepin County Sheriff, in writing, by November 30, 2004, of the City of Brooklyn Genter's commitment to convert to the Hennepin County Sheriffl s Public Safety Answering Point at no cost to the City of Brooklyn Center. November 8. 2004 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. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION DECLINING� TO ACCEPT HENNEPIN COUNTY'S OFFER TO PROVIDE DISPATCH SERVICES TO THE CITY OF BROOKLYN CENTER WHEREAS, the City Council of the City of Brooklyn Center on August 1 l, 2003, by Resolution No. 2000-119, expressed interest in entering into discussions with the Hennepin County Board regarding Public Safety Dispatch Services; and WHEREAS, the Hennepin County Board by Hennepin County Resolution No. 04-8- 390, offered to provide dispatch services to the ten cities in Hennepin County not currently served by Hennepin County dispatch services; and WHEREAS, Resolution No. 04-8-390 provides that cities must notify the Hennepin County Sheriff, in writing, by November 30, 2004, of their commitment to receive dispatch serviees through the Hennepin County Sheriffs Public Safety Answering Point with out cost; and WHEREAS, such written election to convert to the Hennepin County Sherif� s Public Safety Answering Point at no cost must be done by November 30, 2004; and WI�REAS, the City Council of the City of Brooklyn Center has reviewed Hennepin County's offer, reviewed the results of a multi jurisdictional study in which the City of Brooklyn Center participated to review potential consolidated dispatch services, the City's current dispatch needs and operations, the potential for contracting with the cities of St. Louis Park or Minneapolis for dispatch services; and WI�EREAS, the City Council of the City of Brooklyn Center has determined that it does not wish to commit to converting the City of Brooklyn Center's Public Safety Answering Point service provision to the Hennepin County Sheriff's department. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the City Manager be and hereby is directed to convey, in writing, to the Hennepin County Board, the City Council's appreciation for the thorough review of the potential to provide public safety answering point services to those cities in Hennepin County not currently serVed by Hennepin County, and to further convey that the City of Brooklyn Center, while it appreciates the offer to provide services through the Sheriff's Public Safety Answering Point, declines at this time to accept that offer. November 8, 2004 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. City of Brooklyn Center A Millennium Community To: Mayor Kragness and Council Memb s Carmody, Lasman, Niesen, and Peppe From: Michael J: McCauley City Manager Date: November 4, 2004 Re; Dispatch Agenda Item for November 8th At Monday's City Council meeting there are 2 agenda items related to dispatch. The first item will be presentations by representatives of the cities of Minneapolis and St. Louis Park, with an opportunity for the City Council to ask questions of those representatives. The second agenda item will involve a presentation by Brooklyn Center staff reviewing and updating the materials presented at the October 13�' City Council Work Session, a presentation by the Hennepin County Sheriff's Office, City Council questions, and a choice of two resolutions. One resolution accepts Hennepin County's offer to provide dispatch services through the Sheriff's Public Safety Answering Point and the offer resolution declines to accept the County's offer. The updated powerpoint presentation is attached to this memorandum. Also attached are copies of the letters to Minneapolis and St. Louis Park inviting them to attend the November 8 City Council meeting. As outlined in the materials for the October 13 Work Session, the Hennepin County offer has a timeline of November 30 for a firm commitment of participation for any city wishing to switch to Hennepin County. The primary question for the November City Council meeting is whether or not the City of Brooklyn Center wants to accept the County's offer. The other options that would be further developed upon City Council direction, if the Council did not opt to accept Hennepin County's offer, would be: 1. Enhancement of current dispatch operation both in terms of staffing and equipment. 2. Negotiation with either or both St. Louis Park and tfie City of Minneapolis to develop a long term contract for purchasing services from one of those cities. 3. Negotiation with St. Louis Park and Golden Valley on whether a joint powers agreement could be structured for dispatch {Public Safety Point of Service Answering) services can be developed. 4. Maintenance of current dispatch staffing with upgraded equipment. As previously indicated in the materials for October 13 we need to chart a direction for the future of dispatch. City staff are working under uncertainty that needs to be resolved. 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 1 FAX (763) 569-3494 www. cityo fbrooklyncenter. org There are maj or capital expenditures that need to be made if we stay with our own dispatch, undertaken on a cooperative basis if we join a consortium, or avoided altogether if we received service from Minneapolis. Chief Bechthold's evaluation is that our current situation is not a viable long term answer. We have been able to operate through the work of dedicated employees who are covering more than may reasonably be expected as an ongoing situation. HISTORY Brooklyn Center elected not to use Hennepin County Dispatch in the early part of the 1990's when several surrounding communities opted to use Hennepin County dispatch services. Brooklyn Center has operated its own Public Safety Answering Point (PSAP), dispatch, since the 1960's. In the summer of 2003, the City, through Resolution 2003- 119, authorized discussions with Hennepin County regarding public safety communications. One of the driving factors behind that resolution was the need to migrate our radio systems to 800 mhz. While we will use consolettes purchased with a grant, the esti.mated cost of a complete replacement of our dispatch and ancillary equipment to support dispatch (as opposed to the individual radios in squads and portables which will be replaced separately this year if the Council approves the transfer from the Technology Fund) would be around $700,000 Based on 2005 budget numbers, the cost for dispatch operations would be in the range of $545,000. Over the period 2002 —2005, the City has lost roughly $3.4 Million in HACA and Local Government Aid. These lost aids have been partially replaced with increased real estate taxes and a franchise fee. In the summer of 2003, the City participated in a 10 city effort coordinated by the City of St. Louis Park using PSC Alliance to review potential issues and costs associated with various consolidated dispatch concepts. Based on the report from Phase I, which indicated the potential to reduce costs through consolidation, the cities of St. Louis Park, Golden Valley, Richfield, and Brooklyn Center engaged PSC Alliance to conduct a Phase II study to provide a mare detailed investigation of facilities and organization for a consolidated dispatch. OPTIONS Chief Bechthold and I have attended meetings with Hennepin County regarding dispatch. We also met with the City of Minneapolis and toured their dispatch center, as well as participated in the consolidation studies coordinated by the City of St. Louis Park. The basic options, as outlined previously are: 1. Status Quo 2. Enhanced Status Quo 3. Consolidated dispatch along the lines of the PSC Alliance Report 2 4. Purchase of dispatch services a. City of Minneapolis b. City of St. Louis Park 5. Hennepin County All of the options have advantages and disadvantages. The primary advantages of retaining our own dispatch relate to local control and the seamless integration of computer aided dispatch and our records management systems. The primary disadvantages of retaining our own dispatch relate to the srnall size of the operation. If the status quo is retained, we have minimal coverage, training issues related to finding adequate time for training personnel, and the need for a large capital expenditure. Moving to an enhanced status quo improves the staffing situation at an increased cost of operations in the magnitude of $170,000 per year and retains the major capital needs far upgrading. The primary advantages of a consolidated dispatch with St. Louis Park and Golden Valley relate to reductions in the total cost for capital equipment. Another advantage, relative to other outside dispatch scenarios, is the ability to have the full use of our present Computer Aided Dispatch and Records Management System through Logis. Disadvantages include increased operating costs under the Phase II report. {St. Louis Park has indicated that it will be making a proposal to provide service to Brooklyn Center that may be based on a different cost structure than proposed in the Phase II report. The operating cost increase results from the need to staff the police station with cso's who can maintain the non-dispatch activities performed by dispatcher under the present situation. Those costs are estimated at $200,000. The format is similar to the operation of the Golden Valley police department which maintains a 24 hour building. This allows for detention of prisoners, walk-in service, and a support system for officers. Disadvantages include being part of a relatively small operation. Minneapolis has advantages in terms of the depth of their staff, including dedicated fire dispatch, better training due to a larger staff and facilities, and the avoidance of capital costs. Disadvantages include the loss of the integration of Computer Aided Dispatch and Records Management Systems (assuming that Minneapolis does not select the same vendor used by Logis for its new system). With Minneapolis, Brooklyn Center would be a user, rather than an operator. Minneapolis appears to be receptive to meaningful participation by Brooklyn Center in the advisory process for dispatch operations. Minneapolis envisioned an 18 hour block with a dedicated Brooklyn Center dispatcher (backed up by the rest of the center). Brooklyn Center would also have its own channel. Issues of ability to protect against greater than inflationary cost increases would need to be addressed if this option were explared. Some concerns have been raised about 2 stage dispatch at Minneapolis where call taking and dispatching of a unit are done by two 3 separate people. Brooklyn Center uses 1 stage dispatch where the same person takes calls and dispatches. Hennepin County uses a madified 2 stage where the call taker dispatches a hot call (one that requires immediate dispatching of personnel) and then a monitor takes over the radio traffic of the already dispatched units. Hennepin County has advantages again in terms of the size of its operation and the elimination of operating and capital costs for dispatch. Chief Bechthold and Chief Boman have observed Hennepin County dispatch operations and found a decent structure and procedures. The governance structure raises issues in terms of responsiveness to the participating communities. Members are on advisory boards, but final decisions rest with the Sheriff. Another issue with Hennepin County is the need to interface their new Computer Aided Dispatch system with our record management. Hennepin County selected a new vendor that has indicated it will overcome this issue to make their system compatible with the Logis Records Management Systems. ISSUES AND QUESTIONS Several issues and questions have been raised by the City Council and employees over the course of the past presentations and discussions. The revised powerpoint presentation that Chief Bechthold will make addresses several of those questions and issues. The powerpoint presentation addresses the general deployment of personnel relative to population and police personnel being dispatched. One of the concerns raised was whether Hennepin County could charge for dispatch services in the future. The policy direction taken by the County Board is not to charge for these services. The Sheriff's personnel do not sense that there is any sentiment to consider charging. Hawever, there is no guaranteed way to assure that Hennepin County will not charge in the future. There is similarly no guarantee if we contract with another City that, over time, the provider of such services would not attempt to increase their charges to Brooklyn Center at a rate in excess of inflation or other cost indices. There was a concern about dispatching fire personnel during the night to avoid paging out the entire department for a matter that can be handled by the duty crew. This concern appears to have been addressed by confirming the ability to summon only the duty crew by advising the County of the protocols to be followed. The manner of accomplishing this may require new or additional pagers or use of systems at the fire stations in different ways than currently is the practice: Another question related to response time. Chief Bechthold, in the presentation, will elaborate on the question. Basically, the time from call to dispatch is the same between the options. Response time generally relates to the time from dispatch to the actual arrival of the dispatched units. There was a question as to basis for capital costs if St. Louis Park sold services to Brooklyn Center. The Preliminary PSAP Proposal from St. Louis Park based its start up cost allocation to Brooklyn Center on a$1.5 Million estimated cost to build/equip an 800 4 Mhz dispatch center. One iteration of PSC Alliance charts for a 3 city operation used the figure of $807,400 for capital expenses predicated on using same existing equipment. This contrasts with PSC Alliance's general estimate of $1.5 Million for equipment and construction for a 4 city operation. The original power point presentation for October 13 used the PSC Alliance 3 city estimate and then proportionately split it 3 ways. The power point was amended for the actual presentation on October 13 to use the capital cost allocation proposed by St. Louis Park. This resulted in a higher capital cost allocation based on the actual Preliminary PSAP Proposal from St. Louis Park than the original powerpoint slide prepared before receiving St. Louis Park's preliminary proposal. The $807,400 figure was significantly lower than all of the previous estimates prepared by PSC Alliance and involved a less comprehensive long term approach to the physical plant providing dispatch services. SUMMARY Brooklyn Center needs to address how dispatch will be provided in the long term. This requires a decision among a number of alternatives, having different operational advantages and disadvantages, as well as very different cost implications. As indicated above a decisi t�' on on Henne in Count is re uired rior to Noveinber 30 Th' p is has been Y q P the prime focus of discussion since the consolidation study did not present a structure that would present a cost competitive alternative. Cost is not the only consideration. It must be part of the overall evaluation. The gathering of information has been done on a macro level to compare general ranges of cost. Costs of conversion are generally difficult to fully gauge as actual experience will generally result in some unanticipated equipment, software, or staffing implications. Should the final decision result in a discontinuance of our own dispatch services, we have a general format to operate on a 24 hour basis modeled on the steps taken by Golden Valley when they shifted to St. Louis Park for dispatch services. I would estimate that an additional $100,000 of any savings should be reserved in at least the short term (1-2 years) to be able to respond to staffing, conversion of system, or capital needs such as a base station or radio upgrades in the field. Additionally, some method of providing monetary compensation for dispatch personnel in staying through a conversion to an outside provider should be part of any potential plan that results in discontinuing dispatch. It would be essential to maintain dispatch through such a conversion process and there should be recognition of the impact on dispatchers who would stay through such a process. 5 City of Brooklyn �'enter A Millennium Community October 14, 2004 Mr. John Dejung, ENP Director Emergency Communications Department 350 South 5`" Street Room B-911 Minneapolis, MN 55415 Dear Mr. Dejung: The City of Brooklyn Center is considering Hennepin County's offer to provide dispatch services. In connection with that review process, we have shared with the City Council the general outline of the concept that we discussed with Minneapolis. I am enclosing copies of the memorandurn presented to the City Council for its October 13��' meeting, the power point presentation comparing potential dispatch options for the City of Brooklyn Center, and a power point presentation made bythe Hennepin County Sheriff's Office. At lastnight's meeting, it was suggested that Minneapolis and St. Louis Park be invited to provide additional information on the conceptual options they would offer regarding dispatch services. Accordingly, I would invite you to submit any additional information regarding tlle potential for the City of Minneapolis to provide dispatch services that the City Council might consider in its process of evahiating whether to accept Hennepin County's offer of dispatch services or to engage in an in-depth review of the other options for dispatch services. The City Council will be meeting on November 8`�' at 7:00 p.m. to review the options and accept or reject Hennepin County's offer. You, or a representative, would be most welcome to make a presentation at that meeting or answer questions regarding how Minneapolis operates dispatch services. Please let me know if you would like to submit any materials and/or participate in the November 8` City Council meeting. Since Michael J. M a ey Crty Manag Cc: Mayor City Council 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. cityo fb rooklyncenter. org City of Brooklyn Center A Millennium Community October 14, 2004 Mr. Tom Harmening City Manager City of St. Louis Park 5005 Minnetonka Blvd. St. Louis Park, MN 55416-2290 Dear Mr. Hannening: I shared the materials that you sent by e-mail yesterday with the City Council in connection with last night's City Council meeting. As you are aware, the City of Brooklyn Center is considering Hennepin County's offer to provide dispatch services. I am enclosing copies of the memorandum presented to the City Council for its October 13 meeting, the power point presentation comparing potential dispatch options for the City of Brooklyn Center, and a po�uer point presentation made by the Hennepin Colmty Sheriffs Office. At last night's meeting, it was suggested that Minneapolis and St. Louis Park be invited to provide additional information on the conceptual options they would offer regarding dispatch services. Accordingly, I would invite you to submit any additional information regarding the potential for the City of St. Louis Park to provide dispatch services that the City Council might consider in its process of evaluating whether to accept Hennepin County's offer of dispatch services or to engage in an in-depth review of the other options for dispatch services: The City Council will be meeting on November 8`� at 7:00 p.m. to review the options and accept or reject Hennepin County's offer. You, or a representative, would be most welcome to make a presentation at that meeting or ans�ar questions regarding how St. Louis Park would propose to provide dispatch services. Please let me know if you would like to submit any materials and/or participate in the November 8 City Council meeting. Sincerel Michael J. McC e City Manager Cc: Mayor City Council 6301 Shingle Creeh Parhway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430-2199 (763) 569-3400 City Hall TDD Number (763) 569-3300 FAX (963) 569-3434 FAX (763) 569-3494 www.cityofbrooklyncenter.org I u ic ae �s ac �n Cons�deratons and O t�ons p o ac rou n August 2003 Phase I Consolidated Dispatch Study April 2004: Phase II Consolidated Dispatch Study June 2004 Received proposal from Mpls Emergency Communications Department .1uly 2004: Received proposal from Hennepin County September 2004 Phase II Study completed i me i ne: �Vlid -September Letter to employees updating them on the status of the process. Septem ber 20t" Met with fire department officers. nd: Met with olice de artment officers. September 22 p p Week of October 4 th� Scheduled meetings with all police, fire, and city personnel. October 13t" City council work session to review results of Phase II study, and fiscal and operational analysis of all options. November 8 th� City council meeting to vote on accepting or rejecting Hennepin County's offer to provide dispatch services. NOV ember 30 th� Hennepin County's deadline for commitment from communities to join sheriff's dispatch. urren �s a c cenar�o: Single-stage dispatch operation Staffing: 1 dispatch supervisor 6 dispatchers Minimums: 1 Tasks Dispatch I After-hours lobby walk-ins i, Confirm hot files, perform CJIS entries, and run criminal histaries Book and maintain surveillance of detainees in the detention facility Process and enter booking and arrest data Station security Transcribe in-custody arrest reports Be available to look for booking photos, research prior histories, and capture information from previous reports u rren �s a c a en es: Attract, deve op, and retain a ua it work a y force Staffin eve s are not ro ortionate to: g p p Increased volume of public inquiries ➢Job tasks Depth and flexibility for peak periods Rate of ch a n e i n u b i c s afet tech n o 0 g p Y gY Standards and trainin g Costs i M ths and Truths Y (PSC A/liance) Autonomous local PSAPs Not true. Local PSAPs do not cause faster cause faster fire and police responses. In fact, local PSAPs are often responses too smali to manage multiple events quickly causing delays in dispatch. Calls must be dispatched Not true. The PSAP can be located IOCally. anywhere as long as it is properly equipped, connected, and managed. Consolidated dispatch Not true. Properly managed consolidated Caf1 t 111eet IOGaI tleedS a11d dispatch will work with users to establish and protocols follow "best practices". Citizens demand local Not true. Citizens demand quality dispatch dispatch and field response. Local fire dispatch is Not true Properly managed consolidated alWayS pl'efef rG'd by fll"e dispatch is often preferred by fire officials as a better performing option because it OffIC111S. handles more fire activity, allowing for more consistency, focus, and practice. Com arin A ternatives p g Decision Status' Quo Enhanced ��St. �`�rt��s,�'at`��,� ��'�lfr�n�� u��"� 3 �He. �ie�'�ri� Parameters Dispafch Drs atch ��#��i� 3,3�� s��is '��c� �w� 3 .P a ai�� '�i ��'a�., .�,e �«�i 9 �a vul� �t� h�"I�� '�3�� I��a�'I i�: .Ya r� �:L y �S� a.: t 3 a r rr Governance loca( police [ocal police �`�'�,�c�a��ou��er�� en�� eriff functir�r� f nc U tion function �a��3�� h��f��t �c€� tJRBIS�� j -�.y� �^�&'-n-�b e 3�.��. Si1 3 Il�'�'� `�'1`�(� t� ��Sf�� t��' GCtI`TI�YiI��G'E' I�/ a g .w, .�3 �i t 5 2 r� s. I Staffing sin 1e=sta e ry�� a�sta",�� y� f� z� �f 9 9 singie stage ��,��tr��l��s �t�� g�,�� s��m�dt��'�� odt�i�d multi-task mult� task �t�t� F �wo sta 'e� minimums: 1 minir►iums.- 2 s��g� �tat�c�� n y, yF 'Y��'�`�� i ��"`�1 �i. i �r Pa� �r r�`K s�� a r r r i4 t7s ��'"'&s 2 3�.. «�e�'�"�« 2r� Y"�i f li Procedures local with local with ��'u��fo J �th lo�al ��o �►r�th �a I� ur�iforrn w�th local Y C' l� '�S'b' �'u/ Y �fJ�D'�x3 S� f �l W F �l .a?ue SU Process ad hoc review' ad ho� review ��1� �x+��pfNans� a� �k '�'I N.s `f 91'� k n �'3�c -k ai L! �i�''^k w, 3 ,ss �j, r, ��h��s ��.A�3,.,��.a ,h;%' x"�,r ��v..,.,� Sua,� CAD RMS LOG�1S LOGIS �i yt ��CA�� r �3� A p �s�i� �p i �ar�y D� Compatibility �:�Printrak Prr�ntrak ��;��r� r,��r�� y a��t�� ,,,wtth futt��r� 5 't ag 6 �+.,a sr/ f�� t 3 }a,� CAD/RMS CaD/RMS r inferface c�� r� a fr�r,�'� s� d�r� s �r� �a' �am� p �J3� .�.7��: w y �y �'7 a �r Y `e-s�. ,rc..,. .u�€a.�11, T. �o,. ..e., �7 Capital costs $703 300 $7Q3 3t�� d y y �l f. 'Iat,� ��//p� d 3. �+y�,� �x�,z� tv`3a 7� q� �y ��t 3 �>h^� r T,.. a .r� k?„ D .,,>,.a� z��.. f, m a�, v.: ,sLi' s �Q Annual $543,37$ $7"�6,878 �7� �7� ��5g Operating Costs Q�� r�� .aa rb ?�t u '�r+ 't� .�.�An��,��_« ._i� ,.ur�...�,;,. �s �X�`i v.,.i'�Y°Y��i� *Additional $200,000 added for 24/7 station community service officer. Emergency Dispatch Protocol ��r��':..,,:.. fia F�"`� t E a s i'�' v,� �r a �r�� Y�' fi3r� t'� c�"� I. "T F ��R��s��i�^�_`�. I 3�3,�q:. a w ,�3 ''�'('n L x ��F� S�' ba W ��'i �k��,�{�'i��i 1. u �Y s r. n ,z., as �z I pr I I I I I 3 ��t��C�� x�:. r �v, �Y' �L�' 3� e x �s r i 6? 5�� 3.� Y� wl✓ ��`S`�,°� f r y, a yY 9 �i c J' 1 i �\1I'f �y I {I' '�p; y <.<...vt y.mi e�� .},ni.��,... Y "Y� 3�� 1 .k, The person taking the cafl, dispatches the caii. Non-Emergency Dispatch Protocoi 3� s. z y;.,..0 �.D ,�,y a #T�� s��, y �w e y �I '�:��1 �.��rl�� g �"i�� f �"at�� .w`�.: £�L r t'� s r-� t �y �i u�` �'.�-��°1��G�t�� .�s+� s .4:-". i z� "k�'�r�r a f, 1 1, a��.��.;& �;f,�r,ia�f"�s�Am�'i,�'�c: o m �',k�" t:�, h t w v w y vi i� w ��I Y�. w, u �r �q� ,�i �'d��2'��.�� #4 s� r�� a�� 1 ��i �{�rR�!� y .F. �,�r� G a� w;. �."t °r 6 ti" 5 g f y�" x2, t �yMi N ;�`y., r� s I� .h.�s�.��3.�. ��."�e�G�� 1a��+� s� y �4 s -y a_ a�!' u�., a h y fi2l F�` �r�W� ��r Dispatchers Police Units Populations eak eriods �p p Brooklyn Center Hennepin County East Police Department Crystal/Robbinsdale/St Anthony/New Hope Minimum Police Staff Units Population Staff t; s �a��a�; e ;r r�� ,x "�''.Fr� 'fi,'�'w�, �a u a p�a. m 'l,, y' Call Radio y Taker ,x, Monitor ��u.., Dispatcher Tasks: PO�IC@ Combined ➢��Spat�n Units Po�ulation y Q, r, ➢After-hours lobby walk-ins �,�1� a Y ➢Confirm hot files, erform CJIS entries, and run Clerk s ��F ��k'�� p a criminal histories w e v,�� ra,� �r,• I �r.� !G��,.... ➢Book and maintain surveillance of detainees in the detention facility ➢Process and enter booking and arrest data Clerk Tasks ➢Station security ➢DL and MV checks ➢Transcribe in-custody arrest reports ➢Crimina{ histories ➢Be available to look for booking photos, research prior ➢Warrant checks histories, and capture information from previous reports ➢Limited Hot File CAD RMS Descri p t�ons Computer-Aided Dispatch Records Management System Allows dispatchers to quickly Manages the recording, indexing, and efficiently handle incident and tracking of detailed record information entering a call and information related to specific routing or dispatching to an events. officer. Records can be retrieved and Can do queries to state DMV modified to reflect current files and NCIC files from CAD. information. Allows for messaging between Many record types can be dispatchers and MCD users. associated with records of the Incident Mapping. same type as well as with records Status Monitors. of different types. Can produce some canned reports. I nte rf ace CAD i RMS Brooklyn Center Hennepin County Dispatch Dispatch I r� -s �ia q`�L. z r 7a a 3 f a�'�� a� 3 tY ��Printrak �j Pri�trak Henn pin �rintr� a�r� �t h�3 �v p�' s� ��►D ��RMS 3 3 3. ,i A l d i t. �2 f P a' .�q. i7.4� J� x, ,l�'. I 3 �I"t �7 r '�s A r .I` a a; a '�E v P «w p a e I �s r; f ��Y1, ��*r� 3 ��.s� E 3 ,�s r 3 �s r, r v,�.��: �ai,"�a �i�'� y 7 I��E Ir �.��a�, as� �'��'��51,,�� 3 ��-X 3 s�r b f� ,.�i �n��, 3 b �IA ��k 3� 3 S t �s x' �'�'h a�� 3�: a' 3 �1 W' I�ai �j� r? 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Hennepin Count Dis atch Cities Y p Police Departments: Fire Departments: �rystal Robbinsdale Robbinsdale West Metro (Crystal/New Hope) New Hope Brooklyn Park Brooklyn Park Excelsior Champlin Maple Plain Corcoran Maple Grove Deephaven Medicine Lake South Lake Minnetonka Mound West Hennepin Osseo Maple Grove Plymouth Medina Rogers Mound St. Anthony Orono Wayzata Osseo Hamel Plymouth Long Lake Rogers Dayton St. Anthony Loretto Wayzata St. Bonifacius Three Rivers Park Dist Dayton Minnetrista BROOKLYN CENTER DISPATCH FI RE Emergency call entered into CAD i I Call toned out on fire pager Duty crew calls received by duty crew through ring down phone at the station, I I I Dispatch monitors units in senrice and on scene Dispatch monitors fireground operations Makes calls at request of incident commander (i,e, Centerpoint, Excel, etc.) Ability to configure PAR personnel accoun�bility report checks �I and ability to load alert files HENNEPIN COUNTY DISPATCH FI RE Emergency call entered into CAD Call is automatically transmitted to alpha pager call is then toned over fire channel Duty calls for duty crew only toned out on duty crew pagers I I Dispatch monitors to check units in service, Fire uses their own private talk group (truck to truck communication/fireground). Dispatch does not monitor fireground operations. At a major incident a tact channel is assigned that is monitored by dispatch. I Incident commander communicates with dispatch on fire main channeL Incident commander uses two radios: one for truck to truck (fireground) and one for incident command to dispatch Makes calls at the request of the incident commander (Excei, Centerpoint, etc,) PAR personnel accountability report checks performed automatically and ability to load alert files es onse o ou nc� ues �ons i City Council Agenda Item No. l0a MEMO To: Michael J. McCauley, City Manager From: Ronald A. Warren, Planning and Zoning Spec' list ��J Subject: City Council Consideration Items Planning Commission Applieation Nos. 2004-010, 2004-011, and 2004-012 Date: November 3, 2004 On the November 8, 2004 City Council Agenda are Planning Commission Application Nos. 2004-010, 2004-011, and 2004-012 submitted by ATS R, Inc. on behalf of Osseo Area Schools (ISD 279) requesting Preliminary Plat approval, Resoning, Site and Building Plan approval and a Speical Use Permit The Preliminary Plat (Application No. 2004-010) comprehends the dividing and combining of the old Willow Lane School property, Willow Lane Park property and two vacant multi residentially zoned parcels of land (R-2 and R-4) into three new parcels of land. The Rezoning application (Application No. 2004-01 l) comprehends rezoning from R-1 (One Family Residence), R-2 (Two Family Residence) and R-4 (Multiple Family Residence) to C-1 (Service/Office) of a 3.63 acre parcel of land proposed to be created under Application No. 2004-010. The Site and Building Plan approval and Special Use Permit (Application No. 2004-012) comprehends a 4$,600 sq. ft., three story, two staged service/office building for an adult education use on the above mentioned 3.63 acre site proposed to be rezoned to G1 (Service/Office) under Application No. 2004-011. Attached for your review are copies of the Planning Commission Information Sheets for Planning Commission Application Nos. 2004-010, 2004-011, and 2004-012 and also an area map showing the location of the property under consideration, a survey and preliminary plat, various site and building plans for the proposed development, the Planning Commission minutes relating to the Commission's consideration of this matter and other supporting documents. These applications are related and were considered by the Planning Commission at their October 28, 2004 meeting and were all recommended for approval. Application No. 2004-01 l was recommended for approval by the Commission through adoption of Planning Commission Resolution No. 20Q4-03 (attached). It is recommended that the City Council, following consideration of this matter, approve these a lications. A pp resolution approvmg Application No. 2004 O11 contairung various recommended findings, considerations and conditions is offered for the City Council's consideration. Also offered for the City Council's consideration is an Ordinance Amending Cha ter 35 of P the City Ordinances Regarding the Zoning Classification of Certain Land (Southwest Corner of Brooklyn Boulevard and 71 Avenue North). The last action for any rezoning is to describe the property that was rezoned under its new zoning classification in the zoning ordinance. It is, therefore, also recommended that the City Council consider for first reading the above referenced ordinance amendment. This new legal description will become effective when the final plat is filed with Hennepin County. Application Filed on 9-30-04 City Council Action Should Be Taken By l 1-29-04 (60 Days) Planning Commission Information Sheet Application No. 2004-010 Applicant: ATS R, Inc. (On Behalf of Osseo Area Schools) Location: Land Located Between 71 st Avenue North and 69th Avenue North, West of Brooklyn Boulevard Request: Preliminary Plat The applicant, ATS R, Inc. on behalf of Osseo Area Schools (ISD 279) is seeking preliminary plat approval to divide and combine a number of parcels of land including the Willow Lane School property, Willow Lane Park property and two vacant multiple family residence (R-2 and R-4) parcels of land along Brooklyn Boulevard into three new lots. The three proposed lots would be Lot 1(Willow Lane Park), Lot 2(Willow Lane School), and Lot 3 a new site for a joint tenant Adult Education and Service Center building serving the Osseo School District and a non- profit service provider (probably CEAP). The same applicant is seeking rezoning to G 1 (Service/Office) for the proposed Lot 3 under Planning Commission Application No. 2004-01 l. The properties under consideration are zoned R-1 (Willow Lane School and Willow Lane Park), R-2 (lot at southwest corner of Brooklyn Boulevard and 71 Avenue North), R-4 (interior lot fronting on Brooklyn Boulevard between Willow Lane School property and the above mentioned corner lot). The properties are bounded on the north by 71 Avenue North and five single family residential lots; on the east by Brooklyn Boulevard, the Willow Apartments (zoned R-5) and six single family residential lots on Major Avenue North; on the south by 69 Avenue North and five single family residential lots facing 69 Avenue and Perry Avenue; on the west by Perry Avenue with single family homes on the opposite side of the street. The existing lots include parts of Lots 11, 12, 13, 14, and 17, Auditor's 5ubdivision No. 57 and metes and bounds descriptions are used to describe the existing school and park properties. Lots 2 and 3, Block 1, Center Brook Addition are the R-2 and R-4 zoned properties respectively making up the balance of the plat. The School District recently acquired Lots 2 and 3 and wish to combine them with the northeasterly eorner of the school property to create a new lot for their proposed adult education facility. The School District and City have agreed to a land swap between park and school property to accommodate the proposed development. A portion of Willow Lane Park will be con�eyed to the School District to aceommodate a retention pond south of the parking lot for the proposed adult education facility in exchange for land on the south side of the school, which will be incorporated into the park. Relocation of an existing trail will need to be accomplished as well as the relocation of a softball field. The City and School District have had joint and cooperative agreements for the use of these facilities for a number of years. The Park and Recreation Commission has reviewed the proposed land swap and field Page 1 10-28-04 relocation and has recommended approval of it provided the playground at Willow Lane Park is not enclosed with fencing and that a practice soccer field be built by the School District south of the proposed retention pond. Joint powers agreements will need to be modified and/or provided to acknowledge the shared uses. The preliminary plat submitted did not include all of the Willow Lane Park property at the time the application was submitted. The applicant has been advised that this information needs to be supplied and that all of Willow Lane Park will have to be included in the plat. We are expecting revisions by the applicant and hope to have this prior to the Planning Commission meeting. The newly proposed Lot 3 to contain the adult education facility will be 158,322 sq. ft. (3.63 acres). Lot 2(the Willow Lane School) will be 333,972 sq. ft. (7.66 acres) and the proposed Lot 3 for Willow Lane Park will contain a yet undetermined acerage. This figure will be provided with the revised submission. A joint, or shared, access between the new Lot 3 and the Willow Lane Apartments has been negotiated tzetween the School District and the apartment complex. The current northerly apartment access on Brooklyn Boulevard will be eliminated and a new shared access will be provided on the School District property for the proposed adult education facility. Hennepin County has reviewed and agreed with the access arrangement. Access was a critical issue with respect to the recommendation of this proposal. The County wanted no new access on Brooklyn Boulevard, however, if the sites were not combined, access would have to be granted to the existing Lots 2 and 3. The City staff's concern was that an access to a combined site could not be accommodated on 71 St Avenue North. If access to the site was limited to only 71 St Avenue, it would be difficult for the city staff to recommend approval of a plat combining the lots and a rezoning for some type of commercial development. The proposed shared access seems fo accommodate all concerns (both County and City) and allows the proposed development to go forward. Various easements and agreements will need to be drafted and executed to accommodate aspects of this plat. A driveway easement, or cross access agreement, between the School District and the Willow Lane Apartment will need to be accomplished and filed. A sidewalk easement along Brooklyn Boulevard will need to be accomplished, as the proposed property line/right of way line will remain in its current location. A drainage easement for the retention pond in a manner approved by the Public Work's Director will also need to be developed. No Watershed Management Commission review is required for this development, although a retention pond is planned and must meet Watershed standards. The Public Works' Director/City Engineer is reviewing the preliminary plat and will be offering written comments, which will be attached for the Commission's review. A public hearing has been scheduled for this preliminary plat and notice of the Planning Commission's consideration has been published in the Brooklyn Center SunlPost. Page 2 10-28-04 $F.C`(1MMF.NI� A TTnN This preliminary plat may be in order pending submission of the additional information relating to Willow Lane Park. Approval of the preliminary plat should be subject to at least the following conditions: L The final plat is subject to review and approval by the City Engineer. 2. The final plat is subject to the provisions of Chapter 15 of the City Ordinances. 3. Appropriate cross access agreement allowing access from the Willow Lane Apartments to the proposed Lot 3 shall be developed and filed with the plat. 4. Appropriate drainage and utility easements as approved by the City Engineer shall be provided to protect pubic utilities and the retention pond. Said easement shall be filed with the final plat. 5. Existing but no longer necessary easements shall be vacated by the City prior to release of the final plat. 6. The location of access to the proposed Lot 3 is subject to final approval and permit by Hennepin County. Page 3 10-28-04 ciry� BROOKLYN MEMORANDUM c�vTER DATE: October 25, 2004 TO: Ron Warren, Planning and Zoning Specialist FROM: Todd Blomstrom, Director of Public Works SUBJECT: Willow Lane School Willow Lane Park Adult Basic Education Facility Preliminary Plat and Site Plan Review Planning Commission Applications 2004-010 The Public Works Department reviewed the following preliminary documents submitted for review under Planning Commission Application 2004-010 for property located between 69 Avenue North and 71 Avenue North, west of Brooklyn Boulevard. Preliminary Plat, dated October 25, 2004 Site Demolition Plan, dated September 30, 2004 Site Layout Plan, dated September 30, 2004 Site Grading Plan, dated September 30, 2004 Site Utility Plan, dated September 30, 2004 Preliminary Plat The applicant is proposing to plat Lots 2 and 3 of Centerbrook Addition (currently vacant lots along Brooklyn Boulevard) and part of Lot 17 of Auditors Subdivision No. 57 (Willow Lane Elementary School) along with the Willow Lake Park property. The plat would result in one separate lot for the existing school building, one lot for a proposed Adult Basic Education Facility and the reconfiguration of the City park property. The following comments and xecommendations regarding the proposed preliminary plat are provided for your consideration. 1. On September 21, 2004, the Park and Recreation Commission recommended approval of the proposed exchange of park property with IDS 279 (District) subject to the conditions listed below. a. The District agrees to incur all expenses related to fulfilling all requirements for the land transfer, including re-platting of the revised property lines far the park. b. TheDistrict agrees to leave the joint school/park playground equipment unfenced. The District may undertake fencing of new playground areas, as long as the equipment is located exclusively on District property. c. The District agrees to allow the City to use an area located to the north of the existing skating rink for the purpose of a soccer field. G:�Engineering�pevelopment Planning\Willow Lane-ABE IDS 279�Prelim Plat-Site Review.doc d. The District agrees to purchase, and donate to the City, one (1) pair of regulation soccer goals, to be used at the discretion of the City. 2. The proposed development site is adjacent to a County Road. A copy of the preliminary plat was received from the applicant on October 25, 2004 and submitted to Hennepin County Transportation Planning Division for review and comment. 3. The applicant shall provide the City with an executed copy of an access easement for the proposed shared driveway access onto C5AH 152 prior to initiating site construction. 4 The applieant shall file a request to vacate existing easements transecting Lot 3 prior to ar concurrently with the final plat submittal. The vacation request shall include a legal description and survey map identifying the easements to be vacated. 5. The following additional easements shall be provided on the final plat or in separate easement documents. a. Lot 2— A 5 ft wide drainage utility easement along the easterly lot lines adjacent to Lot 3, a 10 ft wide drainage utility easement along the north property line and a sidewalk easement over the portion of existing trail running parallel with the proposed south property line of Lot 2. b. Lot 3— A 5 ft wide drainage utility easement along lot lines adjacent to Lot 2 and 7015 Brooklyn Blvd (apartment complex), a 10 to 20 ft wide easement alang the easterly property line adjacent to CSAH 152 and a 10 ft wide drainage utility easement over the storm sewer connecting the proposed storm water pond and the existing storm sewer within Brooklyn Blvd. 6. The applicant shall provide written documentation of any public sidewalk, streetscape or landscaping items along Brooklyn Boulevard that are located outside of the boundary of easement document nos. 3946720, 7339999 or 3281488. The applicant shall also provide written documentation of any portion of sidewalk along Perry Avenue North that is located outside of the boundary of easement document no. 4059130 (not included on the preliminary plat). 7. All right of way and easements necessary to provide street and utility service to the proposed site development or accommodate proposed relocation of existing public utilities within the site shall be dedicated to the public for public use with the final plat. 8. Ties to an adjacent section corner, including bearings and distances, shall be provided with the final plat. 9. The site plan identifies the installation of a shared driveway access from Lot 3 onto County State Aid Highway (CSAH) 152 and the elimination of the north driveway access for the adjacent apartment complex. Staff does not recommend that driveway access for G:�Engineering\Development Planning\Willow Lane-ABE IDS 279\Prelim Plat-Site Review.doc Lot 3 be allowed from 71 S Avenue. Prior to approval of the final plat, the applicant must provide written confirmation from Hennepin County that the proposed shared access will be acceptable to Hennepin County in order to avoid the creation of a lot with no public street access. Water Supply and Sanitary Sewer Service 6-inch diameter water main is currently available within 71 St Avenue to provide public water service to Lot 3 of the preliminary plat. 8-inch diameter sanitary sewer is also available within 71 Avenue to provide public sewer service to Lot 3. 1. The new sanitary sewer service to Lot 3 shall have a minimum diameter of 6-inches. 2. The water service to the building shall include the installation of a gate valve at the north property line and separate curb stop/gate valves for the domestic and fire lines priar to entering the building. The location and method of connection to the existing public water main shall be subject to approval by the Supervisor of Public Utilities. 3. All street and utility extensions must meet City of Brooklyn Center design standards or other appropriate design standards as determined by the City Engineer. 4. The proposed site plan shall be subject to the approval of the City Fire Chief and Building Official, including hydrant spacing requirements and any other requirements of the Fire Department. Storm Drainage The proposed storm sewer to serve Lot 3 would convey storm water runoff to a proposed storm water management pond located to the south of the parking lot within Lot 2. l. The storm water management pond shall be designed to adequately address all design requirements as established by the Shingle Creek Watershed Management Commission. These standard can be found at: http://www.shin�lecreek.or�/appendixb.pdf. The applicant may submit a written request to the City to consider allowing minor modifications to these design standards due to safety concerns associated with the adjacent school facility. 2. The proposed pond shall sufficiently control the total discharge rate from the site and storm water pond to avoid overloading the existing storm sewer system within Brooklyn Boulevard CSAH 152. 3. The applicant shall provide a copy of the storm sewer design calculations to the City for review and approval prior to requesting a building permit. The design calculations shall include the peak discharge rates from the pond for the 2-year, 10-year, and 100-year critical storm events and greater detail as to how the proposed storm water improvements will comply with the above referenced design standards. G:�Engineering�Development Planning\Willow Lane-ABE IDS 279\Prelim Plat-Site Review.doc 4. Connection to the storm sewer system within CSAH 152 is subject to approval by Hennepin County. 5. Erosion control measures shall be installed prior to starting site grading operations. Silt fence shall be installed along the building side of adjacent sidewalks. Erosion control measures shall include the installation of a construction entrance to avoid the tracking of mud onto City and County roadways. The owner will be responsible for the prompt rernoval of all dirt and mud tracked onto public streets from the site during construction. 6. An NPDES construction site erosion control permit must be obtained from the Minnesota Pollution Control Agency prior to disturbing the site. The above comments are provided based on the information provided by the applicant at the time of this review. Subsequent approval of the final plat may require additional modifications or dedications based on engineering requirements associated with final design of water supply, storm drainage, sanitary sewer, gas and electric service, final grading, and geometric design of streets as established by the city engineer and other public officials having jurisdiction over approval and recording of the final plat. 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I �Ir.• �1;�� ':'I I I I 1 .-..r.. ..,�ni..� e j i i i i I� i i i i I d i i i i i i i i I I a i i ,e..a i s t i i i i i .e i I I rh a_____ I I 6g I 1 I 1 I �p I y I _____L_ I I 1 I 1 I 1 I e11 �I e i I 9 i i i i I I€9 i i i i i ----y---- j i aY I �6x? a d I a9 4 SURVEY LEGEND E%15T4NG CONDI710N5 -_"_'I a.w��,�..� k o m o n R uxe _c war I f r puu µ�.wwu«�.u��mwo PRE�IMINARYPLAT 0 0 0 ¢o �oo� m f Om"` n I m..e..,, o mo�.�R ssm orv.,w. sce w essr w.. wo-�m �,a o.,w� 03-083 .r�rt c�ne �heet 2 of 2 Application Filed on 9-30-04 City Council Action Should Be Taken By 11-29-04 (60 Days) Planning Commission Information Sheet Application No. 2004-011 Applicant: ATS R, Inc. (On Behalf of Osseo Area Schools) Location: Southwest Quadrant of Brooklyn Boulevard and 71 st Avenue North Request: Rezoning The applicant ATS R, Inc. on behalf of Osseo Area Schools (ISD 279) is requesting rezoning from R-1 (One Family Residence), R-2 (Two Family Residence) and R-4 (Multiple Family Residence) to G1 (Service/Office) of a proposed 3.63 acre site located at the southwest quadrant of Brooklyn Boulevard and 71 St Avenue North. The parcel will be created through a replatting of this area (See Planning Coxnmission No. 2004-010) by combining the northeast portion of the Willow Lane School site along with two vacant multiple residential parcels (R-2 and R-4) immediately to the north. The proposed new lot would abut Brooklyn Boulevard and 71 Avenue North. The property in question is bounded on the north by 71 st Avenue; on the east by Brooklyn Boulevard and the Willow Lane Apartments (zoned R-5); on the south by R-1 zoned lane that is Wi11ow Lane Park; and on the west by R-1 zoned property for the Willow Lane School and single family homes facing 71 St Avenue North. B A C"K C'TR nT TNT) The Osseo School District has for some time been searching for a new location for their adult education program that is being displaced by a redevelopment project in Brooklyn Park. The School District has recently acquired two abutting vacant pareels of land (Lots 2 and 3, Block l, Center Brook Addition) located adjacent to and northerly of their Willow Lane Early Childhood Center (formerly Willow Lane Elementary School). Lot 2 is currently zoned R-2 (Two Family Residence), is .34 acres and is a corner lot abutting 71 Avenue North and Brooklyn Boulevard. Lot 3 is currently zoned R-4 (Multiple Family Residence), is .64 acres, and is an interior lot fronting on Brooklyn Boulevard between Lot 2 and the School District site. Their plan is to divide off a portion of the Willow Lane property and combine it with the two newly acquired Iots to create a 3.63 acre parcel of land to house their adult education facility. The School District has also been discussing a joint use of a proposed building on the site with an area non-profit service group (CEAP), which might include some day care facilities as well as other services. The newly created lot would be created through a replat (Application No. 2004-010) and would include Lots 2 and 3, the Willow Lane Earle Childhood Center property and all of the Willow Lane Park property owned by the City. They also are seeking site and building plan approval and a special use permit (Planning Commission Application No. 2004-012) for a 48,600 sq. ft. three story serviceloffice building to be constructed in two phases to house their adult education facility and the service/office occupancy for CEAP. Page 1 10-18-04 Educational uses including post secondary schools, business schools, trade schools and the like, but excluding public and private elementary and secondary schools (K-12) are allowed special uses in the C-1 zoning district. Service office uses are permitted uses in the Gl zone as well (see Section 35-320, Subdivisions 1-3, attached). This is why the applicant is seeking the rezoning of the proposed new parcel to C-1. A C-1 parcel of land supporting an allowable service/office use is required to have a minimum of 150 ft. of frontage and, if located abutting a major thoroughfare such as Brooklyn Boulevard, have a minimum lot area of one acre. The proposed new lot will have approximately 510 ft. of frontage on Brooklyn Boulevard and will be 3.63 acres in area. (�'TTTTI�F.T,TNF.� FnR FVAT TTATTNC'T RF7�ll�j�� All rezoning applications are reviewed in light of the Rezoning Evaluation Policy and Review Guidelines contained in Section 35-208 of the city's zoning ordinance (attached). The Planning Commission must review the proposal in light of the Policy and Review Guidelines. The policy states that zoning classifications must be consistent with the City's Comprehensive Plan and must not constitute "spot zoning", which is defined as a zoning decision which discriminates in favor of a particular land owner and does not relate to the Comprehensive Plan or accepted planning principals. Each rezoning proposal must be considered on its merits and measured against the City's policy and against the various guidelines, which have been established far rezoning review. The applicant has submitted a letter (attached) in which they comment specifically on each of the guidelines contained in Section 35-208. The following is a listing of the guideline, the applicant's comments and staff response to each of the guidelines: a. Is there a clear public need or beneft? The applicant indicates that their proposed new facility on the proposed rezoned land has programs that are directed towards residents that need assistance with language skills, completing a high school education, and developing work skills. They note that approximately 20 percent of the customers using these services live within walking distance of the proposed site. Approximately 15 percent of the Willow Lane Early Childhood Center customers are also customers of services proposed far the facility. The staff would note that the proposed rezoning is necessary to accommodate the facility proposed by the School District. Adult education uses are allowed generally within the commercial zones (C-1 and G2). A distinction is made in the zoning ordinance between elementary and secondary educational uses and other educational uses. Elementary and secondary educational uses are not allowed in commercial zoning districts generally because of the need for open space such as playground and recreational facilities. In order for the School District to provide adult education and similar facilities, they need to find commercially zoned land. The acquired two parcels combined with the excess land from the old Willow Lane School site accommodate this need. It can, S therefore, be argued that by providing the necessary zoning to accommodate the Page 2 10-18-04 school's need for an adult education facility is meeting a public need and providing a public benefit. b. Is the proposed zoning consistent and compatible with the surrounding land use classifications? The applicant indicates that the proposed C-1 district would be compatible with other service/office properties located along Brooklyn Boulevard. We would generally concur with the applicant's comments about the compatibility with surrounding land uses. The Willow Lane Early Childhood Center and Willow Lane Park are located on R-1 zoned property and are allowable institutional and recreational uses in this zoning district. The Willow Lane Apartments, which is zoned R-5, will abut the new proposed rezoned land. Single family residential homes would be located to the west of the facility. On the opposite side of Brooklyn Boulevard are commercial service/office uses and an off site parking lot for a church. The plan presented later by the applicant will show that they can meet the requirements of the G 1 zone. Of even more significance is the compatibility of the proposed C-1 zoning designation with the City's Comprehensive Plan. The Comprehensive Plan with respect to redevelopment along Brooklyn Boulevard recommends eliminating inappropriate single family uses along Brooklyn Boulevard and replacing them with either commercial and service/office uses on sites that are large enough to provide adequate circulation and good site design or high and medium density residential uses. The two vacant multi residentially zoned parcels and the excess school district property, although not containing single family residential uses, can be considered infill redevelopment of the nature suggested for commercial redevelopment along Brooklyn Boulevard. The two multi residential sites, one being R-2 and the other being R-4 would, for all practical purposes, need to be combined into a single multi residential lot for some kind of development. This would mean rezoning one to R-2 or the other to R-4 to accommodate a unified multi residential development. The site would be approximately once acre in area and could accommodate at the maximum a multi residential development of approximately 12 units. This is not a highly desirable type of redevelopment for this area. A service/office commercial redevelopment would seem to be more appropriate and coupled with excess school district property makes an appropriate service/office site. The Comprehensive Plan further sites this area as a possible mid-density residential development if incorporated into a larger redevelopment area. The Brooklyn Boulevard Amenities Study of 1994 cited two possible development concepts for this area, one of which indicated the two parcels in question for a commercial service/office use. It is, therefore, believed that the proposal for a C-1 rezoning of this area is consistent with an compatible with not only surrounding land uses but the City's Comprehensive Plan as we1L Page 3 10-18-04 c. Can all proposed uses in the proposed zoning district be contemplated for development of the subject property? The applicant notes that the anticipated uses are allowed or permitted in the Gl district and they also note the possibility of a non-profit childcare facility being a part of the proj ect at a later date. We would note that all of the uses comprehended in the G1 zoning district can be contemplated for development on this site and be compatible with surrounding land use classifications. The more specific proposal presented by the School District can also be accommodated within the proposed zoning change. d. Have there been substantial physical or zoning classification changes in this area since the subject property was zoned? The applicants note that along Brooklyn Boulevard there have been a number of office, service and retail developments. They note that there has been an effort to move single family and small multi family residential properties away from Brooklyn Boulevard and that their proposal is consistent with that goaL We would concur with the comments and again note the Comprehensive Plan general guideline far eliminating single family residential uses along Brooklyn Boulevard and to infill with service/office commercial particularly and some mid and high density residential uses in appropriate locations. There have been some rezoning applications, particularly with respect to Planned Unit Developments at the northeast corner of Brooklyn Boulevard and 69` Avenue and the Brookdale Mitsubishi redevelopment site along Brooklyn Boulevard to the north. These have accommodated commercial developments and expansion of commercial uses in the area as part of redevelopment projects. It is anticipated that in the future more rezoning proposals particularly along Brooklyn Boulevard will come forward. As long as these proposals prove consistent with the City's Comprehensive Plan, it is believed that the City should accommodate the proposed classification changes. e. In the case of City initiated rezoning proposals, is there a broad public purpose evident? The applicants indicate that this is not a City initiated rezoning proposal. We would comment that although it is not a City initiated rezoning proposal but rather a School District initiated proposal that a broad public purpose may be considered evident in the rezoning request in that it will accommodate a needed expansion of School District services. Page 4 10-18-04 L f. Will the subject property bear fully the ordinance development restrictions for the proposed zoning district? Again, the applicant responds with a yes to this question. We would comment that the proposed School District facility will have to conform to all applicable zoning requirements of the proposed G1 zoning district. It appears, as will be shown later with the development plans, that this guideline can be met as we1L g. Is the subject property generally unsuited for uses permitted in the present zoning district with respect to size, configuration, topography or location? The applicant notes that sites on Brooklyn Boulevard are not suitable for residential development. They also point out that the intended density for the existing multi family residential zoning would require multiple access points to Brooklyn Boulevard. They point out as well that locating single family residential units along Brooklyn Boulevard is not desirable and this location is a good location for their proposed use. We would note that the two lots recently acquired by the School District that are zoned multi residential (R-2 and R-4) can be considered generally unsuited for multi residential development purposes. To be developed separately, one as a two family dwelling and the other as an approximate 8 unit sfory and a half apartment do not seem feasible. Even if developed, separate accesses to the sites would be needed to accommodate the uses. This is not a desirable proposition for the County in terms of access to Brooklyn Boulevard. The combination of the site and, as will be shown later with the development proposal, a shared access with the Willow Lane Apartments to the south means one access point will service this area. This is more desirable from the County's perspective for access points on Brooklyn Boulevard. Multiple family residential development is not the most desirable redevelopment possibilities from the City's perspective. A service/office use seems much more appropriate. The size, configuration, location and aecess arrangement proposed with this combination and rezoning of the site seems to be the best possible configuration for the redevelopment of the vacant property. h. Will the rezoning result in an expansion of a zoning district warranted by: 1. Comprehensive Planning; 2. Lack of developable land in the proposed zoning district, or; 3. The best interest of the community? The applicant notes that the rezoning of these lots to C-1 is consistent with the Comprehensive Plan and other properties along Brooklyn Boulevard. They further note that the location of the project works well far them and the visibility on Brooklyn Boulevard is a positive as well as proximity to bus routes. Page 5 10-18-04 We would concur with the applicant's comments and note that the proposed rezoning appears to be in the best interests of the community. The propased rezoning is consistent with the City's Comprehensive Plan, which calls for service/office commercial infill or mid-density or high-density residential infill along Brooklyn Boulevard. With respect to the lack of developable land in the proposed zoning district, there is little developable land in the city other than such vacant parcels as those in question. Multi family residential uses are considered to be plentiful within the city and the City's practice has not been to rezone property for that particular use. The City has encouraged G1 or serviceioffice developments along Brooklyn Boulevard for many years and this proposed zoning would be consistent with this philosophy. The proposed zoning would allow far the rational use of the land in question and does appear to be in the best interest of the community. i. Does the proposal demonstrate merit beyond the interests of an owner or owners of an individual parcel? The applicant notes that the service provided by this project to the community should have a positive effect on the quality of life. We would comment that we believe this proposal does demonstrate merit beyond just rhe interests of an individual owner by providing public benefits with the expanded school district facility. In as much as the proposal furthers valid zoning objectives, it also demonstrates merit beyond just the interests of the School District. The Rezoning Evaluation Policy and Review Guidelines also note that the City policy is that zoning classifications must be consistent with the Comprehensive Plan and rezoning proposals must not constitute "spot zoning" defined as a zoning decision that discriminates in favor of a particular land owner and does not relate to the Comprehensive Plan or accepted planning principles. We find no significant conflicts with this policy as noted above in our review of the guidelines for rezonings. This proposal is, we believe, consistent with the Comprehensive Plan and is also consistent with good planning principles with the proposed use being consistent and compatible with existing surrounding land uses. We find no conflict with the proposal in this regard. �R nr F,l�T TR R It has been the City's practice with respect to zoning applications for the Planning Commission to refer them to Neighborhood Advisory Groups for additional review and comment. Mandates in the State Statute require the City to complete reviews within 60 days and to give applicants an answer within that time frame. Because of the notice requirements for publication and public notice, we require applications to be submitted four weeks prior to their review by the Planning Commission. The clock, however, begins on the date the application is accepted. Therefore, the Page 6 10-18-04 III�_ zoning decision must be made by the City Council no later than November 29, 2004. Almost 30 days of the required 60 day time frame will have expired before the Planning Commission's pubic hearing is even held. This requirement makes it difficult for the City to hold the Neighbarhood Advisory Group meetings we normally have. The Planning Commission instituted a procedure because it still wishes to receive Neighborhood Advisory Group input with respect to these rezoning applications. We have invited the Northwest Neighborhood Advisory Group members to the Planning Commission meeting and are encouraging their comments and partieipation. A staff report will be delivered to the Neighborhood Advisory Group members at the same time that it is delivered to the Planning Commission members. Hopefully, they will have an opportunity to review the matter and to make comments at Thursday evening's meeting. It should be noted that representatives of the Osseo School District have met with neighboring property owners with regard to their proposal to rezone and provide an adult education facility on the subject property. A public hearing has been scheduled and notices have been sent to surrounding property owners and a notice of the Planning Commission's consideration of this request has also appeared in the Brooklyn Center Sun/Post. $F.C' 11MMF.NI� A TT(�N We believe this application is in order and would recommend approval of the rezoning acknowledging its consistency with the Rezoning Evaluation Policy and Review Guidelines contained in the zoning ordinance. Attached for the Commission's review is a draft Planning Commission Resolution regarding the recommended disposition of Application No. 2004-011 submitted by ATS R, Inc. on behalf of Osseo Area Schools. Page 7 10-18-04 F r'� F �rM��*�. rr��ti i ��1 u�v► r� �r� 1i111►�� J f i� i� 3,i Ii t�� r��. �r��tit �!s ��1��: ��i 1t111� l-' �Q ��r ��rt�iti�� t�� ..1 �'f��i�!.t fi�i��i�1 ��;��l� ■s� �s�. i ,�''r -t� �'��'��t.' d w, :T..'�,� r,?• rfj p t� t l� i II� 1 �Fa r. S s s !9 �i��'i��r �1� i��titi�I�1� -��l�t�i� ■��i�� I��I��Ir r/ vj::: ,1i... 1 ose of leasing or selling apartment units within 5, A real estate office for the purp i;' the develo ment in which it is located. P e occu ations not to include special home occupations as defined in i: Hom P Section 35-900. ensed residential programs with a licensed capacity of seven to 16 adults or children e. Lic j. reyuired to be permitted by M.S. 245A.11, Subd. 3 and M. S. 462.357, Subd. 8. f. Licensed nonresidential programs with a licensed capacity of 13 to 16 persons required to be permitted by M.S. 245A.14, Subd. 2. are facili serving from 13 through 16 persons required to be permitted g, Licensed day c tY by M.S. 4b2.357, Subd. 8. 2. Special Revuirements a, See Section 35-410 of these ordinances. Section 35-320. C1 SERVICE/OFFICE DISTRICT. 1, Permitted Uses service/office uses, are permitted in the C 1�istrict, provid �thaa b emen �s 'I'he following each establishment or building sha11 not exceed three stories, or in the event proposed, three stories plus basement: rovided however, that such (at not more than 5� beds per acre), p a. Nursing care homes, S�te law, or regulations of the licensing authority, institutions shall, where required by be licensed by the appropriate state or municipal authority. b, Finance, insurance, real estate and investment office. c. Medical, dental, osteopathic, chiropractic and optometric offices. oi�ice en ineering and az'chitectural offices, educational anb okkee�mg offices, d. Legal g auditing and P offices (excluding laboratory facilities), accountin8, �ban pianning agency offices. els, churches, temples, mosques, and e, Places for religious assemblies such as chaP SY �gogues. City Ordinance City of Brooklyn Center 35-29 Beauty and barber services. g. Funeral and crematory services. k t i h, Photographic services. c: i, Apparel repair, alteration and cleaning pickup stations, shoe repair. l rovided that the fabrication of signs shall not be a permitted use. j Advertising offices, p k. Consumer and mercantile credit reporting services office, adjustment and collection 'i service offices. 1. Duplicating, mailing and stenogra.phic service offices. m. Employment agency offices. n. Business and management consultant offices. o. Detective and protective agency offices. p. Contractor's offices. q. Governmental offices. r. Business association, professional membership organizations, labor unions, civic, social and fraternal association offices. rinci al uses when located on the same s. Accessory uses incidental to the foregoing p P property with the use to which it is accessory. Such accessory uses to include but not be restricted to the following: 1. Offstreet parkinS and offstreet loading. 2. Signs as permitted in the Brooklyn Center Sign Ordinance. 3, The compounding, dispensing or sale (at zetail) of drugs, prescription items, patent or proprietary medicines, sick room supplies, prosthetic devices or items relating to any of the foregoing when conducted in the building occupied I primarily by medical, dental, osteopathic, chiropractic or optometric offices. 35-30 City Ordinance City of Brooklyn Center i r r 4, Retail food shops, gift shops, book and stat�onery shops, tobacco shops, esso eatin establishments, sale and service of office supply equipment, acc ry g newsstands and sunilar accessory retail shops e��a �ere s�no assoc ated over 40,000 sq. ft• in gross floor area, provid signery visible from the exterior of the building; there is no carry-out or delivery of food from the lotoand the total flo oss floor area of the build g. a building sha11 not exceed 10 /o of the total gr t. Other use s similar in nature to the aforementioned uses as determined by the City CounciL u. Financial institutions including, but not limited to, full-service banks and savings and loan associations. -in child care centers licensed by the Minnesota Department of uPa license and v. Drop rovided that a copy of s pursuant to a valid license application, p application shall be submitted annuallY to the City. easin offices, provided there is no storage or display of products on the use site. w. L S x. Libraries and art galleries. ements 2, Svecial Reawr a. See Section 35-411 of these ordinances. 3. Special Uses a, Accessory off-site parking not located on the same Property with the Principal use, subject to the provisions of Section 35-701. ou da care facilities provided that such developments, in each specific case, aze b. p Y demonstrated to be: ,I ad' acent land uses as well as with those uses 1, Compatible with existing permitted in the C1 district generally. Com lementary to existing adjacent land uses as well as to those uses 2 permitted in the C1 district generally. cotn arable in.tensity to permitted Cl dislrict land uses with respect to 3. Of p activity levels. 1 35-31 City Ordinance City of Brooklyn Center i i f 4, planned and designed to assure that generated traffi� will be �ie capacity ailable ublic facilities and will not have an adverse unpact upon those r: of av P facilities, the immediate neighborhood, or the communitY• t affic enerated by other uses on the site will not pose a danger to children 5. Tr g served by the day care use. and further provided that the special requirements set forth in Section 35-41 are e adhered to. hoto h decora.ting, dancing and the like and c, Instructional uses for art, music, p �P Y� b l studios for like activity. onal uses including post secondary schools, business schools, trade schools and d. Educan rivate elementary and secondary schools (K-12)• �lie like, but excluding public and p Section 35-321., C1A SERVICE/QFFICE DISTRICT. 1, Permitted Uses, (No height limitation) the ermitted uses set forth in Section 3 5-320 shall be permitted in a building or a. All of p establishment in the C 1 A district. 2. Special Reo,uirements a, See Section 35-411 of these ordinances. 3. Special Uses a Accessory off-site parking not located on the same Property with the Pru��P� use, subject to the provisions of Section 35-70L s ecial uses set forth in Section 35-320 shall be allowed by special use b. All of the p permit in the C1A district. Section 35-322., C2 COMNIERCE DISTRICT. 1. permitted Uses a, The retail sale of food. o Brooklyn Center 35-32 City Ordircc�nce Clly f City of Brooklyn Center Section 35-208 REZOI�IING EVALUATION POLICY AND REVIEW GUIDELINES. o 1. Puroose The City Council fmds that effective maintenance of the comprehensive planning and land use classifications is enhanced through uniform and equitable evaluation of periodic proposed changes to this Zoning Ordinance; and for this purpose, by the adoption of Resolution No. 77-167, the City Couneil has established a rezoning evaluation policy and review guidelines. 2. Policv It is the policy of the City that: A) Zoning classifications must be consistent with the Comprehensive Plan, and, B) Rezoning pioposals will not constitute "spot zoning", defined as a zoning decision, which discriminates in favor of a particular landowner and does not relate to the Comprehensive Plan or to accepted planning principles. 3. Procedure Each rezoning proposal will be considered on its merits, measured against the above policy and against these guidelines, which may be weighed collectively or individually as deemed by the City. 4. Guidelines A. Is there a clear and public need or benefit7 B. Is the proposed zoning consistent with and com atible with surroundin land use P g classifications? C. Can all permitted uses in the proposed zoning district be contemplated for development of the subject property? D. Have there been substantial physical or zoning classification changes in the azea since the subject property was zoned7 E. In the case of City-initiated rezoning proposals, is there a broad public purpose evident? F. Will the subject property bear fully the ordinance development restrictions for the proposed zoning districts? G. Is the subject property generally unsuited for uses`permitted�in the present zoning district, with respect to size, co�guration, topography or location? H. Will the rezoning result in the expansion of a zoning district, warranted by: 1) Comprehensive planning; 2) The lack of developable land in the proposed zoning district; or, 3) The best interests of the community? I. Does the proposal demonstrate merit beyond the interests of an owner or owners of an individual parcel? Section 35-208 Revised 3-01 1 L� V�� ARMSTRONG TORSETH SKOLD RYDEEN INC September 28, 2004 Mr. Ron Warren City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Project: Adult Education Center, Osseo Area Schools ISD 279 ATS&R Project No. 03032.1 Re: Rezoning Evaluation. Dear Ron: On behalf af Osseo Area Schools we are requesting rezoning of the parcels owned by Osseo Schools at 71 and Broolclyn Boulevard adjacent to Willow Lane Early Childhood Center. We are also requesting approval of a preliminary plat of parcels which have been purchased by Osseo Schools. Osseo Schools intends to construct a center for adult education including programs for General Equivalency Degrees, English Language Learners, Adult Basic Education, Adult High School Diploma, and other education programs aimed at under-educated, disadvantaged and new immigrant people. Qsseo Area Schools has also been discussing a joint use of the building with an area non-profit service group, which address some of the needs of the same clients as the Adult Education Center. That portion of the project would be constructed during Phase 2. The existing lots are currently zoned R1, R2, and We are requesting rezoning to C1 Office/Service. The following are some of the merits of the proposaL A. Is there a clear and public need or benefit? The facility's programs are directed toward residents that need assistance with language slcills, completing a high school education, and developing work skills. Approximately 20% of the customers using these services live within walking distance of the proposed site. Approxirnately 15% of the Willow Lane Early Childhood Center customers are also customers of the services proposed for this facility. B. Is the proposed zoning consistent with and compatible with surrounding land use classifications? The proposed C-1 district would be compatible with other office/service properties located on Broolclyn Boulevard. C. Can all the permitted uses in the proposed zoning district be contemplated for development of the subject property? The anticipated uses are permitted in a C1 Office/Service district. It is possible in phase 2 of the project that a non-profit child care facility may be a part of the project. D. Have there been substantial physical and zoning classification changes in the area since the property was zoned? Along Brooklyn Boulevard there have been a number of office, service and retail developments. There has been an effort to move single farnily and small multifamily residential properties away from Brooklyn Boulevard. This proposal is consistent with that goaL ARCHITECTURE ENGINEERING PLANNFNG TECHNOLOGY LANDSCAPE ARCHITECTURE INTERIOR DESIGN 8$O1 GOLDEN VAIIEY ROAD SUITE 3OO MINNEkPOL�S MINNESOTA 55427 PHONe 763 545 3731 763 525 3289 Fax Osseo Area Schools ATS&R Project No. 030321 Adult Education Center Rezoning Evaluation Page 2 E. In the case of Cit -initiated rezonin ro osals is there a broad ublic ur ose Y gP P� P P P evident? NA. F. Will the subject property bear fully the ordinance development restriction for the proposed zoning districts? Yes. G. Is the subject property generally unsuited for uses permitted in the zoning district, with respect to size, configuration, topography, or location? The sites on Brooklyn Boulevard are not suitable for residential development. The intended density would require multiple access points to Brooklyn Boulevard. Since Brooklyn Boulevard has become a major thoroughfare, locating single family residential unit is not desirable. This location is a good loeation for the proposed use. H. Will the rezoning result in the expansion of a zoning district, warranted by: 1) comprehensive planning; 2) the lack of developable land in the proposed zoning district; or 3) the best interests of the community? The rezoning of these lots to a C1 Office/Service is consistent with the Comprehensive Plan and other properties along Brooklyn Boulevard. The location of the project works well. The visibility on Brooklyn Boulevard is a positive as well as proximity to bus routes. I. Does the proposal demonstrate merit beyond the interests of an owner or owners of an individual parcel? The service provided by the project to the community should have a positive effect on quality of life. We feel that this project will be a positive addition to the City of Brooklyn Center. If you have any questions please call me at 763-525-3211, or John Fredericksen at 763-391-7014. Sincerely, G;��''2�a Thomas Fabick, AIA Partner TF: Cc: John Fredericksen, ISD 279 Dave Suman, ISD 279 Elena Peltsman, ATS&R Member introduced the following resolution and moved its adoption: PLANNING COMMISSION RESOLUTION NO. ?c�n4-n� RESOLUTION REGARDING THE RECOMMENDED DISPOSITION OF PLANNING APPLICATION NO. 2004-011 SUBMITTED BY ATS R, INC. ON BEHALF OF OSSEO AREA SCHOOLS WHEREAS, Planning Commission Application No. 2004-011 submitted by ATS R, Inc. on behalf of Osseo Area Schools proposes rezoning from R-1 (One Family Residence), R-2 (Two Family Residence) and R-4 (Multiple Family Residence) to G 1(Service/Office) of a proposed 3.63 acres site loeated at the southwest quadrant of Brooklyn Boulevard and 71 Avenue North; and WHEREAS, the Planning Commission held a duly called public hearing on October 28, 2004 when a staff report and public testimony regarding the rezoning request were received; and WHEREAS, the Planning Commission considered the rezoning in light of all testimony received, the guidelines for evaluating rezonings contained in Section 35-208 of the City' s Zoning Ordinance and recommendations of the City' s Comprehensive Plan. NOW, THEREFORE, BE IT RESOLVED by the Planning Advisory Commission of the City of Brooklyn Center to recommend to the City Council that Application No. 2004-011 submitted by ATS R, Inc. on behalf of Osseo Area Schools be approved in consideration of the following: L The proposed rezoning to the G1 zoning designation is considered to be a public benefit by providing land area for service/office development along Brooklyn Boulevard, which is considered to be compatible with surrounding property and land use classifications. 2. All permitted uses in the proposed Gl zoning district can be contemplated for development or redevelopment of the subject property. 3. The subject property will bear fully the ordinance development restrictions for the C-1 zoning district. 4. The property in question is considered to be more suitable for a G1 rather than multiple family residential designation. The G 1 rezoning will allow for service/office uses, which are compatible with, complimentary to and of comparable intensity to adjacent land uses as well as those permitted on surrounding land. 5. The proposed G1 rezonin ro osal is considered consistent with the g P P recommendations of the City' s Comprehensive Plan for this area of the city. 6. The proposed C-1 rezoning appears to be a good long range of the existing land and such development can be considered an asset to the community. 7. In light of the above considerations, it is believed that the guidelines for evaluating rezonings contained in Section 35-208 of the City' s Zoning Ordinance are met and the proposal is, therefore, in the best interest of the community. Date Chair ATTEST Secretary 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. Application Filed on 9-30-04 City Council Action Should Be Taken By 11-29-04 (60 Days) Planning Commission Information Sheet Application No. 2044-412 Applicant: ATS R, Inc. (On Behalf of Osseo Area Schools) Location: Southwest Quadrant of Brooklyn Boulevard and 71 st Avenue North Request: Special Use Pennit/Site and Building Plan Approval The applicant, ATS R, Inc. on behalf of Osseo Area Schools (ISD 279) is seeking site and building plan approval and a special use permit to construct a three story, 48,600 sq. ft. service/office building to be constructed in two phases that would house the School District's adult education program and a joint tenancy with a non-profit service group such as CEAP. The proposed site is 3.63 acres in area and is being created under the plat proposed under Planning Commission Application No. 2004-010. The site is made up of a portion of the Willow Lane Early Childhood Center (formerly Willow Lane Elementary School) abutting Brooklyn Boulevard and two multi residentially zoned properties (R-2 and R-4) also abutting Brooklyn Boulevard to the north that have recently been acquired by the School District. This site is the subject of the proposed Gl (Service/Office) rezoning of the property comprehended under Planning Commission Application No. 2004-011. Obviously, this special use permit and site and building plan approval cannot be granted unless the two pervious applications are also approved. The ro ert in uestion is bounded on the north b 71 Avenue• on the east b Brookl P P Y 9 Y Y Yn Boulevard and the Willow Lane Apartments (zoned R-5); on the south by R-1 zoned property that is the City's Willow Lane Park; and on the west by R-1 zoned property for the School District's Willow Lane Early Childhood Center and single family homes facing 71 Avenue North. Educational uses including post secondary schools, business schools, trade schools and the like, but excluding public and private elementary and secondary schools (K-12), are allowed special uses in the G1 zoning district. Service/office uses are permitted uses in the G1 zone as well (see Section 35-320, Subdivision 1-3, attached). The special use permit being sought is for the adult education uses proposed for the facility under this zoning classification. R A CK C�'TR OT T1�TT� As indicated in previous applications, the Osseo School District has for some time been seeking a I new location for their adult education program that is being displaced by a redeveloprnent project in Brooklyn Park. The School District acquired the two parcels of land immediately north of their existing property far the purpose of creating a site for a new building to house their adult education pragram. They have had discussions with CEAP about a possible joint tenancy. The School District would own the facility and lease space to CEAP. They are planning to build the proposed building in two phases, the first phase far the adult education program, the second phase once CEAP can put together a capital improvement program. They are seeking plan Page 1 10-28-04 approval for the overall footprint and accompanying parking facilities. CEAP may seek an additional special use permit for a possible daycare/childcare facility at a future date. Such a special use permit is nnt part of the current application, but the second phase building is. The building is proposed to be three stories in height (no basement), 48,600 sq. ft. in area with a masonry exterior on the first floor and a stucco type material on the second and third floors. The first phase would be 25,000 sq. ft. A(' F.� S/P AR KTN(T/�C,RF,F.NTNCT Access to the site will be from a shared access with the Willow Lane Apartments and is located at a point that is farthest from the Brooklyn Boulevard/71 Avenue intersection. Access to the site has been a critical factor in the feasibility of the School District's proposal to combine and rezone the site in question. Access to Brooklyn Boulevard is subject to approval by Hennepin County and their policy is to limit as much as possible the number of access points on Brooklyn Boulevard. The City supports this policy and our development policies for C-1 uses acknowledge this. However, the City staffl s concern was that 71 St Avenue North was an inappropriate location for the sole access to the proposed commercial site. Access to a two family dwelling on 71 Avenue, as that property was zoned, was the maximum that we believed could be allowed. It was critical to get an appropriate access arrangement on Brooklyn Boulevard for the city staff to recommend approval of a combination and rezoning of the properties in question. The School District negotiated an arrangement with the Willow Lane Apartments whereby the apartment would agree to close its north access if a shared access from the adult education site would be agreed to. The County accepted this proposal and the access arrangement allows the plan to go forward. It should be noted that there is no other access proposed for the site and no vehicle access or cut through access, will be allowed between the Willow Lane Early Childhood Center and the School District's adult education site. The School District is attempting to create a campus like atmosphere between the two sites and pedestrian access between the two is planned as well as walkways and connections to Willow Lane Park. Again, no vehicle access between these two sites will be provided for or allowed. The site plan calls for the building location to be at the minimum 35 ft. setback from the Brooklyn Boulevard right of way with a 35 ft. green strip being provided along Brooklyn Boulevard and 71 Avenue North right of ways. The majority of the parking and the first phase parking will be to the south and west of the building. One hundred eighty nine spaces will be provided in the first phase to accommodate the first 25,000 sq. ft. of building. Two hundred twenty six parking spaces will be provided for the 48, 600 sq. ft. building based on a formula that will require approximately one space for every 215 sq ft. of gross floor area. This meets the parking formula for a service/office building exceeding 20,000 sq. ft. in gross floor area. The north lot, which will have 37 parking spaces, would be constructed at the time of the building second phase construction. A circular curb line will be provided to the rear (west) of the building as part of the first phase construction. Nine handicap spaces are planned by the rear entrance to the building. A 5 ft. wide concrete walk will connect the front entrance to the building with the sidewalk along Brooklyn Boulevard. Walkways are planned for around the building as well as cross walks in the parking lot. There will be a walkway connection to the Early Childhood Center to the west. Page 2 10°28-04 A 15 ft. buffer strip is required between R-1 and C-1 zoned properties. A screening device approved by the City Council is also required where these zones abut. A 15 ft. buffer and a 6 ft. high cedar fence to match an existing screen fence along the Willow Lane Early Childhood Center parking lot is proposed to be extended along the northwest property line where this site abuts a single family home. A 6 ft. high cedar fence and 15 ft. buffer is also proposed between the south parking lot and the Willow Lane Apartment property line. The applicant is requesting that the City waive the buffer and screening requirement between the Early Childhood Center site and the adult education facility (along west property line) where they would have a 3 ft. green strip and provide landscaping. This allows for a better parking lot configuration and also allows for a more campus like atmosphere between the two sites. The 3 ft. parking setback appears to be acceptable given the fact that the old school site is a more institutional use rather than actual residential use of the property for which the buffering and screening is intended. The landscape plan, as will be shown later, appears sufficient in this area as well. The City has waived screening requirements between Gl and Institutional R-1 uses in the past. It is recommended that the screening device be extended to the east at the north end of the site to screen the parking lot from the residential property on the opposite side of 71 Avenue North. Such screening is also required by the zoning ordinance. CTR AI�iNC'T/l�R A1NAC'TF./i TTTf .TTTF.� The applicant has provided preliminary grading, drainage and utility plans which are being reviewed by the Public Works' Director/City Engineer and written comments are anticipated and will be attached with this report. Storm sewer will be provided in the newly constructed parking lots to be connected to storm sewer in Brooklyn Boulevard right of way. B-612 curb and gutter will be provided around all driving and parking areas and is indicated on the plans. A plan revision should be provided for the driveway where a 36 ft. wide opening is being proposed for access to and from Brooklyn Boulevard. The zoning ordinance limits commercial access points to no mare than 30 ft. in width. When wider than 30 ft. driveways are proposed in commercial areas, it has been the City's policy to separate the ingress and egress aisles by a concrete delineator. Plan modifications should be made to reflect this criteria. Sanitary sewer and water for the proposed building will be connected to existing mains in the 71 Avenue North right of way. The applicant's site grading plan shows the location of proposed erosion control devices. T'ANI�'4(' AP�S'' The applicant has submitted a landscape plan in response to the landscape point system used to evaluate such plans. This 3.63 acre site requires 3301andscape points. The Iandscape plan indicates a requirement only of 244 points. The plan itself as best we can determine would provide 312 points, which is slightly short of the minimum required. They propose to landscape the site by providing a variety of shade trees, coniferous trees, decorative trees and shrubs. The plan calls for a total of 12 shade trees, four Marshall Seedless Ash, Five Northwood Red Maple, Page 3 10-28-04 I and Three Kentucky Coffee Trees. These shade trees are located primarily around the perimeter of the south parking lot, in an island area to the west of the building and two along the 71S Avenue North green strip. Sixteen coniferous trees are shown on the plan arid include five Black Hills Spruce, six Medara Juniper, and five Eastern Red Cedar. These are located primarily along the green strip between the Ear1y Childhood Center and the adult education site as well as along the 15 ft. green strip between the north parking lot and the single family residential lot to the west. One Black Hills Spruce is proposed for the 35 ft. green strip east of the building. Decorative trees are proposed primarily for the 35 ft. green strip between the building and Brooklyn Boulevard. A total of 35 decorative trees are planned for and include 11 Service Berry, 11 Thornless Hawtharne, and 13 Spring Snow Crab Apple. Again, these are provided primarily around the building including the front green strip and the perimeter areas to the south and west of the site. Decorative trees also adorn the parking lot island areas to the west of the building. The landscape plan also calls for 85 shrubs including 16 Burning Bush, 20 Calgary Carpet Juniper, 28 Anthony Waterer Spirea and 21 Compact American Cranberry Bush. These are all located around the perimeter of the building. Some modifications to the landscape plan should be accomplished in order to meet the minimum 330 points required. RT TTT .I�TN(�'T The applicant has provided building elevations and floor plans for the proposed building. As indicated previously, this is a two phase construction project with the first phase being the southerly portion of the building. They are, however, seeking full building plan approval for the second phase as well. The proposed building material is a face brick along the lower, first floor, elevation and two column type areas along the main entrance. E1FS, or a stucco type material, will be the predominant exterior for the upper two floors. Abundant windows are located around the entire building. The north end of the first phase of the building will receive a similar exterior treatment. Mechanical unit screen walls will be provided for on the roof of the building and be of the EIFS material. Canopy structures will be located over the east and west entrances to the building. T ,TC'THTTNC'T/TR A 4H A lighting plan has been submitted indicating the proposed lighting will not exceed the foot candles authorized under Section 35.712 of the zoning ordinance. The plan calls for six triple headed light poles in the south parking lot area and two single headed light poles in the parking lot island area to the west of the building. A single light pole will be provided in the driveway connecting the Willow Lane Apartments and the adult education facility and two single headed light poles on either side of the entrance to the site are proposed: The light poles are proposed to be 30 ft. high. In addition, wall mounted lights are proposed for the south and west building elevations. It is recommended that the type of light pole proposed at the entrance be similar to the types of light poles provided for in the Brooklyn Boulevard Amenities Study. As with all proposed lighting, our main concern is that it be shielded and directed downward on the site and not create glaxe for abutting properties or public streets. Page 4 10-28-04 A trash enclosure will be located along the north side of the building following phase two construction. Prior to that it will be located at the northwest corner of the building. No building material is indicated but should match the building exterior and contain solid opaque gates. SPF.C'.TAT. T 1�F. PF.RMTT STANI�ART)S As indicated previously, the adult education use is considered a special use and is, therefore, subject to the Standards for Special Use Permits contained in Section 35-220 of the city ordinances (copy attached). These Standards for Special Use Permits require that the proposed special use permit will promote and enhance the general public welfare and not be detrimental to or endanger the health and safety of the public; not be injurious to the use and enjoyment of other property in the immediate neighborhood, nor substantially diminish or impair property values; not impede the normal and orderly development of surrounding property; be designed so as to minimize traffic congestion on the public streets; and conform with applicable regulations of the district in which it is located. Our comments are that we believe the facility proposed by the Osseo Asea Schools will meet the Standards for Special I7se Permit contained in the zoning ordinance. It appears that the proposed use will promote and enhance the general public welfare by providing a needed adult education facility that will be utilized by many members of the public. The proposal should not be injurious to the use and enjoyment of other property in the immediate neighborhood nor will it diminish or impair property values. The School District held a meeting with neighboring property owners earlier this year and showed their proposal and took comments from property owners under advisement and have incorporated those matters into their plans. The development of the adult education facility and service/office use by CEAP should not impede the normal and orderly development of surrounding property. The rezoning to Gl is consistent with the City's Comprehensive Plan and development proposals for in fill development along Brooklyn Boulevard. We also believe that adequate measures have been or will be taken to provide proper ingress and egress and that the parking on the site will be adequate for the uses provided. We do not see traffic congestion to be a problem with the associated use. A public hearing has been scheduled with respect to this special use permit and notices have been sent to surrounding property owners. $F.C'�IMMFNI�ATTnN We believe the plans are generally in order and approval can be recommended subject to the following conditions. 1. The building plans are subject to review and approval by the Building Official with respect to applicable codes prior to the issuance of permits. 2. Grading, drainage, utility and erosion control plans are subject to review and approval by the City Engineer prior to the issuance of permits. Page 5 10-28-04 3. Any outside trash disposal facilities and/ar roof top mechanical equipment shall be appropriately screened from view and provided with opaque gates. 4. The building is to be equipped with an automatic fire extinguishing system to meet NFPA standards and shall be connected to a central monitoring device in accordance with Chapter 5 of the City Ordinances. 5 rea to An underground imgation system shall be mstalled m all landscaped a s facilitate site maintenance. 6. B-612 curb and gutter shall be provided around all driving and parking areas. 7. An as-built survey of the property, improvements and utility service lines shall be submitted to the City Engineering Department. 8. Plan approval is exclusive of all signery which is subj ect to Chapter 34 of the city ordinances. 9. All work performed and materials used for construction of utilities shall conform to the City of Brooklyn Center's current standard specifications and details. 10. The applicant shall enter into an easement and agreement for maintenance and inspection of utility and storm drainage systems prior to the issuance of permits. 11. The applicant shall provide appropriate erosion and sediment control devices on site during construction as approved by the City Engineering Department. 12. The special use permit is granted for the construction of an adult basic education facility and service/office use. Any alteration of expansion of facilities not comprehended by the approval of this special use permit shall require an amendment. 13. The final plat comprehended under Planning Commission Application No. 2004-010 shall be approved by the City Council and filed with Hennepin County prior to the issuance of building permits for this project. 14. The rezoning comprehended under Planning Commission Application No. 2004-011 shall be approved in its entirety prior to the issuance of building permits for the proj ect. 15. The plans shall be modified in the following manner: a. Provide an extension of screening along the 71 Avenue North green strip to provide sufficient screening of the parking lot to the residential properiy on the opposite side of 71 Avenue. b. Modifications to the landscape plan to meet the minimum requirement of 330 Page 6 10-28-04 landscape points. c. To provide a concrete delineator separating ingress and egress at the access point on Brooklyn Boulevard. d. Light standards that are similar to standards approved under the Brooklyn Boulevard Streetscape Plan and recently installed during the Brooklyn Boulevard upgrading shall be provided at the access,point to the site. 16. The screening plan proposed and as amended by Condition No. 15a above is considered to be appropriate and consistent with screening requirements in the Zoning Ordinance where G1 abuts residentially zone properties. 17. Access to the site along Brooklyn Boulevard is subject to approval by Hennepin County Transportation Department and the obtaining of the appropriate permit. Page 7 10-28-04 i F 1 EI f r'� V T� ��r��i*' -�:�..r:-.�.:..:.... ��1�� tlll fIy1111�► J a� ,/li1l f•�� S+ r i%�;i��i �,,�1�� I �t�► t r s� ia i� s t��►�► r ��-.r�t��►r! ■1� .r. �Ililti� �j�i� �t- �1��,�� E�� i ,a T�l�� d t t3 ��H `J rt] 1 �1 t v �1��,� ■I t s f r �t �s �1 t T �a ��■i i��t��ll��t t1► -��st�ti��t j d t� I�I v'�� i��t�*. f �;�i Ron Warren rom: EPeltsman@atsr.com ent: Tuesday, October 05, 2004 8:24 AM To. Ron Warren Cc: JKalkes@atsr.com Subject: Project description ASE building Goodmorning Below please find the project description. Let me know if you have any further comments or questions. Thank you Elena Peltsman, AIA ATS&R Architects and Engineers epeltsman�atsr.com 763. 545. 3731 A total of 48,600 sq.ft. 3 story no basement) office building is proposed to be built by Osseo School District at 71st and Brooklyn Boulevard adjacent to Willow Lane Early Childhood Center. The property is proposed to be rezoned to C-1 and we believe, the proposed zoning is consistent and compatible with the surrounding land use classifications. The building is proposed to be on the Brooklyn Boulevard to increase the visibility of it's services, to support and ease the pedestrian traffic for the building users from the bus routes and to support the density and development of the major horoughfare Brooklyn lvd. The access to the site is proposed to be shared with the adjacent Apartment complex The parking is behind the building Great care has been given to a clear simple and safe design of traffic patterns and layout of parking and drop -off area. Froper fencing between the Residential and Commercial areas is proposed Pedestrian sidewalks and crossings are designed to insure safety on the site. The new building will house Adult Education Frograms aimed to assist under educated disadvantaged and new immigrant population. Osseo School District has also been discussing a shared use of the building with a none- profit service groups (such as C.E.A.P. community emergency assistance program which address some of the needs of the same clients as Adult Education Program. This portion of the project would be constructed during Phase two. Anticipated time line for the phase two is l -1,5 years The first phase of the project is proposed to be about 25, 000 sq. ft The first phase will have all core facilities upsized for the phase two addition. It will have the main lobby with reception, public toilets ,stairs ,etc with the 2 entries from the Brooklyn Blvd and from the parking, and Osseo School District programs. It will be 3 story high building with masonry materials on the first floor and stucco type materials on the 2nd and 3rd. Modular uniform design of office window will be contrast with 'all' glass main entry. 1 I �Ena in� �r N �S�1� I O�recr exis�� eu �oa�. rawaar ori aro rmr�. o.m. c i xwun .wo ��ove c�srr� rancr�*e e oewa�K.o i r�x sr wNS�wcria� �awi �`m um..� �MC °�y�� 5) 5 e I I O 1ff'bvE @k�iRb n1LL DERN �'DiJCFEiE BIOEWdLK n Cbl WmYYIk/ ba a�"'"` w�`" o, ro I i 6 r�rio.E oaer� caXrx�re a� .uro cyrrers arro�we e�nn�s. rM nm �s�f��'"� d uo� o 9AW!31i ANO f�1P/E �K�iE G1� M!D GIIITER TO iSAI�9T ,yP�� M F i l I I COI�LSIR'LTION JOIM is ms�m� g (�c m�a l O s�ur svo r+�no��e�s.m� einnrt+cus v_, ..Qarwur. wu .....a �l D I�TbvE 1ULL DEPtN EXIBTIKS BIltA1ML�19 PAyETIDJT.PATFW4Y. 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(THE i I �`si eQL. �J q T G1RGFti Cd91R1CfION PR�.2Cf), AYD FLNfE �bIK IDENOTED I I w 9 Ib�! ^f0s A1 RINRE BttILDRG ADDRId AND FNIRE Pd12CMW 1 IF II u� g 4 R LnYart �e�aJo 1 I b i i S �i' �eavr ourr emamHO.ie e� -�--a.»a+arra...ea.ew� ecen kior� ac awn �rt� !e 7 an u�i x�R nv.eE i� E,ie,no�� FUIURE 1 u�ra� BUILDR�G I 5 aEwacE amnmoue miu �n� Kum x+o m� i p eeas i i N ADDITIQl L R ��K i i o.w,�'�e i i �...,n� I wzaau� (�vy j 'i eD ro e.a DIHENSION!PAVINGPLNlNOTES� I 1 Ji y v°° y e y—_P.��AS pp aoa cu� am ca�*re�e �m -m� es� J-.� s s I ��tS� Q� &1R CQICI�I£ a/Im ND GuttEl¢ 4* I g T I I I I I I I I�I I�I I i e .b 0\ O S Q� TAPERED NRB END 8ECi1[�L�� a e I. e.e T` e° nurx �m�o�o rar.r€re x.ae `^R 4 e i-u�� e j I O D 'a.��, �m..'i��\ O e^ .uiuc coNCr�*e uwx scrn�e .a eNONi r A o o �P.�� p' 5:19�.9 o 6 I v g T� 1 u Q S e y O ��r Q coNr2�L JoMr. a �+j� I �S I 1 Op ACCEMIBLE alim OR1N6� W I e �t 2 rA�. ni�� 7 `O t ��,.�P..�,o,�. Z a p �I C o. pO eree� rme oo��,am w.« cowcr re worrcm. 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PHASE I �:�niii�i��.e namun� c a�. mr mare wn� niu�a nwn.er�*+e�r Rieacn a� M Willu w o20 Perr q �i' f A$�GIM1.3�__ I_+ c u i �i i sr�r �m� woe ua�i,s e*wi�. ��ru .as sriaw or� n..w nne Elem, tvr e M '9.7 I i I I �p BB6� m o� cn o e• cEOare�*�.onarcu exisn� erns ar+o rr�. StorY Bric k B l dschool ss�x I E i o I>,� 0 3 namnuicr�nrr,ramma� 9� I a..ks I I-�i i o o; e€>�w,ve� B 5 d I' J I I I�_ 1 I I QJ p'%O, D' iH1IX CONCIgTE 4RILItt PdD. vE10FT bITE. LOC4TIUy AND 4 0.0. 0666 I i I nrzi aewe ncer+* r.rsno *rsacTaa BE't toP cg Pao TO eE aI by l 4 J_ I I i� B6 xs.• IIEV61di6 d p yy I 1!L//// BViLD 6.a e�+a 968? 3&. B �iu'W I s3 'sl j I y 565� 81Ct1 LEGEND 6UI:p 5.A e85 OTOP 9ALVx8D 8VIL0 6.1 X CP I I n C e 1 I� I I I I Sf ACCEB6IBLE PPRCRIG q L�I I I H6 52 63 NO PAR<iNG. NID PICK-W ONLY I_ G t 1 m I x a�- 64 d g i i i L R 1 I c I $'u �j5�� M �a 1 1� B yA ■E♦'/EIV[�D d1B"IITAL g e t i i Y t I aenh I Q .�HB1 axurxve 4" i I"e� 3 3mserrvro�xam�s ebz9� i %g5 SEP 3 0 2004 I f9 1 I 3g 33 911E i' SEE 1 _i e i �,o Vaui�o a eg x,w T �as• I I� i �ITY OF BRQ �KLYN �>za° CEPITER �`U�YpIIf PiA�N �s1 SITE LAYOUT PLAN /�j� �l� Iil P�rl I 'p6 7 1 \u,ox g5 y I �°J scn� r`3o' ?863. L 3.0 GRADING 6EtJERAL N�'fES l �L V V�� i a a.� roas �wno� w ro r�.m eus e� e wu� ee r�+o.ta o�d i w.msu�.sm��aK i P I cwaw�crcR e�wi cv+nr+am r+nrt raQUUV axmen aro erosrn ran�eo� �i �wn� ...qo_ i rwnx e�aw ccMwat rcaa� er ewcT �e �..w.. e.s J M I e ,...a. s,.�� o« w.F.e u� s.�..0 cro s��wu. ino 1 �J� o. w i[ xo nn umttmn to 9nrt 900 w 1luvla41d1 SI2� e co rbt GEaN anaoMi a.v d oeN M M2 tW �ECnaJ oEVi�! 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O P A s�" a\ 1T,N�v 'u s�r O_ y N �C L E Z v .�`t'� V A' o i �C� y y O O/ Y �1 w' c c y c� i p .'4� �x� 0 O I� a. i, v _rf i, �.-Sy�� n. x� V 1✓ ti, e. .l 1. isounwc vier i f e +,a vvn�. i.i, u i..... t u�� v u .y. �F V p v v �u y l1 ti. c y Y�` I��i m T ,��T. u u u u v a. Y." i. i. ❑b �e ��L 'u u «'16 u 1 L L u Y� 1 1r w� v L SIfNATURE/SL1L 'u L 'u Y 'u 'u u 1 Y� U �_'u L y__y t L a Y r �Y �L r..e� .i.0 i� .��H }.,v� NOTES 1. r �{p�., v. uvisiors v S v �i i. .k..a v a ."u��'"..' .�v �r .ssrc 1 L a� r u l 1 S� 4r�'S� 3i 'u ��a xw w dSwea n�rox�imxMx cu a 1 L ts i lr 'u 1 v 'u V I 'u L� L u i l� lr L l.r ��I Y 1 6RJIRP !f_ 'u A Y Y 'u u 'aa r.�l 'i� 1� Pa J. ,.•O v PRELUIINARY s. s. DRAWING ti euousi ia. aow F1KlRIGL SfTE PUN PHASE 1 roorauoa cetcuunoris �i w r .w ow3z/woso E1 ATS.`°>I� ��.K �m ,R�� --j OO/tlUlTAN11 j v 'u u �'-1-�-a-r; i 1 1 a i o I ;r-'� 5. ti ,1.: =O� ol�-.- e.,�.F' —L i, �..�ti. Y 1 j� I .��1 I� Y 1 y, Y I �i i j��C o E ��V m /u v� u 1 L 1� JS N L i i c i o s„ y� L ty i� I d .1��/ c �Z --��-'�i 1`/ t 1� 1 i� i 4l�u 'v Y i +p�' yy c y 'u �s 1 'u ISWEIRIL NEW u L_ v� 4 a� u v u v L� `H/ruww ua Y_ O �I �..��r Cl. K W ti w >'Ia� --s.- s� v. r. y.�. �a ?G�m u I O �.ru� Y r, v I LL m Y 1��1� v L L!� u�aa i� Y� t� 1� �YM l� l 1�r L L�( L\ �Q l aa i. ✓i. 1.� v y. v y y y y..� i� �F_. O ��I —b-1 Sa ;t 'u v Sl.rr..�w«f..�.rr v n L r l, la Y L >a Y: u a��,. ti y K u y L L y_ L u� L, imi •o�. »-a. i.-�»�. NOTES u�siors u la S" _I__" I I I I .uewx•.ar[ M la a��'�� u 1 Y 1� u r I a nmw¢ w[ ws wimim u. 4 'v 'u '�i .'f '�_1 li 1� 11�L' Y� 'u 'I 5 pitwe� n Oa6tMCiw �u n[ L�'^ 1 L1LJ I '_}L'Y 'u 'u��_:41 ..�19�' I. L 'y �IL I 5 ��.-a.-.. .__.�_s. �a�.�...s,. m room rc m "".,u�� w w..w,,.. y rcia �wr.w� it.w wM �...w o� BRJ/fiP �'GT' a ar Y Ti S� r� 'i! 'a( aEam 1� "'s 1 a i� Y t� L 1� �a�'�� 1 R tr u a:ai 'x u L la L n v'aiV� Y a.h. e.. 'v L 1 1. l.'�•„ D WIN �v �ah I AUOUST 10, 200� -}p- y �y y w J f001CPNIXE GINlAii0x5 ..�,H raa� w F1ERR�U� i. u i.��zi SffEPUN 1, g �ZI I I I .m.nr�o.,.,�.a --=-1 nwss/oroco i E2 City of Brooklyn Center Landscape Point System •1. Landscape Plantings will be provided on the site based on the point system indicated below: Planting Type Minimum S'ize Points/Planting Max. of Points Shade trees (Deciduous, Maple, Linden, Ash, Oak, 2%2" diameter 10 50 Locust, etc) Coniferous Trees (Pine, Spruce, Cedar) I 5' height I 6 I 40 Decorative Trees (Russian Olives, Ra.diant Crab, 1" diameter 1.5 35 Canada Red Cherry, etc) Shrubs (Dogwood, Spirea, Mockorange, Juniper, �12" diameter .5 25 Arborvitae, etc) Points Required Per Acre The following schedule will be used to determine the required number of points for a given site. The schedule is cumulative so that the first two acres of any site will require points on the basis of the column headed "0-2"; the next eight acres will be computed on the hasis of the column headed "2-10"; and, area over ten acres will be computed on the basis of the column headed "10+". Land Area of 8ite in Acres Type of Development U-2 2-10 10+ O�ce I 100 I 80 60 Restaurant/Reta.iUService/Entertainment/Hotels 80 60 40 Light Industrial 75 60 I 50 Heavy Industrial 60 50 40 Offiee/Industrial (O�rer 25% office) 90 I 70 50 Multi-Family Residential 90 75 I 60 x��;: ��;:�,s•��:;ur+:��3�_,;a,a ry, ��i i;� IK�._ .:.�,�:�..t,�.._ w''P_, i..R _�:��a�:�!:;�e=!;e. i .-c i�.��._�..�� u.�r. �::1� E x'Ll�p��.� ta��n ,,.r� z L�hG. 'w'�� i "'n` fn t ,An� x i im �t a r F L5� I M�� i 1� 4 i f i y �i i r r rv W �'E. tq� r. i u t y fa. 1 i Six �e�e nftic��srte �►�r�g �ia��i�► �cre� so 521� �o�nts, g ru� i i v `k J Y� L 1 f h yi Ix k Ti 1 ��i a.' E fi '3 W��I I, a�. y i Y� L �I T ��CCI��, re� �P �N��fry 1"�d�� x��€ `dC�C3 8Cre3 ��1� ��R3��,J,'h"',��4'I'Q3-:.-�Q ��i�„t p�lllt'3� ��I. �.Favfr�.� ,.:.m �7: 2. The above point system in no way substitutes for the screening and buffer requirements set forth in the Zoning Ordinance. Plantings used for screening purposes will be accorded points, but fulfilling the point requirements will not obviate the requirements for screening. 3. Mature existing trees will be accorded points on the basis of the above point schedule. A bonus equal up to the full value of a given planting may be granted by the Commission for the preservation of large existing plantings. 4. All green azeas on a site will be sodded except in azeas where viable turf exists and is totally undist�ubed by construction. The burden will be on the developer to prove at the time of a site inspection that such viable turf, in fact, exists and has been properly maintained. 5. All greenstrips adjacent to an interior property line will be a minimum of 5 ft. in width except in cases where special buffer provisions apply. Landscape Point System 3-O 1 City of Brooklyn Center Special Use Permits Section 35-220 2. Standards for Sneeial Use Permits A special use permit may be granted by the City Council after demonstration by evidence that all of the following aze met: a. The establishment, maintenance or operarion of the special use will promote and enhance the general public welfare and will not be detrimental to or endanger the public health, safety, morals or comfort. b. The special use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property valuss within the neighborhood. c. The establishment of the special use will not impede the normal and orderly development and improvement of surrounding property for uses permitted in the distric� d. Adequate measures have been or will be taken to provide ingress, egress and pazking so designed as to minimiza traffic congestion in the public streets. e. The special use shall, in all other respects, conform to the applicable regularions of the district in which it is located. 3. Condirions and Restrictions The Planning Commission may recommend and the City Council may impose such conditions and restrictions upon the establishment, location, construction, maintenance and operation of the special use as deemed necessary for the protection of the public interest and to secure compliance with requirements specified in this ordinance. In all cases in which special use permits are granted, the City Council may require such evidence and guarantees as it may deem necessary as part of the condidons stipulated in connection therewith. 4. Resubmission No application for a special use. permit which has been denied by the City Council shall be resubmitted for a period of twelve (12) months from the date of the final determination by the City Council; except that the applicant may set forth in writing newly discovered evidence of change of condition upon which he relies to gain the consent of the City Council for resubmission at an eazlier time. 5. Revocation and Extension of Snecial Use Permits When a special use permit has been issued pursuant to the provisions of this ordinance, such permit shall expire without further action by the Planning Commission or the City Council unless the applicant or his assignee or successar commences work upon the subject property within one year of the date the special use permit is granted, or unless before the expirarion of the one yeaz period the applicant shall apply for an eactension thereof by filling out and submitting to the Secretary of the Planning Commission a"Special Use Permit" application requesting such extension and paying an additional fee in an amount as set forth by the City Council resolution. Special use permits granted pursuant to the provisions of a pr�or ordinance of Brooklyn Center shall expire within one year of the effective date of this ordinance if constructian upon the subject property pursuant to such special use permit has not commenced within that time. In any instance where an existing and established special use is abandoned for a period of one eyar, the special use permit related thereto shall expire one year following the date of abandonment. MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION October 28, 2004 CALL TO ORDER The Planning Commission meeting was called to order by Chair ProTem Newman at 7:33 p.m. ADMINISTER OATH OF OFFICE Mr. Warren administered the Oath of Office to Rachel Lund. ROLL CALL Chair ProTem Rex Newman, Commissioners Graydon Boeck, Rachel Lund, Sean Rahn, Dianne Reem, and Tim Roche were present. Also present were Secretary to the Planning Commission/Planning and Zoning Specialist Ronald Warren, and Planning Commission Recording Secretary Rebecca Crass. Tim Willson was absent and excused. APPROVAL OF MINUTES Aueust 12, 2004 There was a motion by Commissioner Boeck, seconded by Commissioner Reem, to approve the minutes of the August 12, 2004 meeting as submitted. The motion passed unanimously. CHAIR' S EXPLANATION Chair ProTem Newman explained the Planning Commission's role as an advisory body. One of the Commission's functions is to hold public hearings. In the matters concerned in these hearings, the Commission makes recommendations to the City Council. The City Council makes all final decisions in these matters. APPLICATION NO. 2004-010 ATS R,1NC. (ON BEHALF OF OSSEO SCHOOL DISTRICT NO. 2791 Chair ProTem Newman introduced Application No. 2004-010, a request from ATS R, Inc. on behalf of Osseo School District No. 279 for preliminary plat approval to divide and combine the Willow Lane Early Childhood Center property, Willow Lane Park property and two vacant multi-residential zoned properties at the southwest corner of 71 Avenue North and Brooklyn Boulevard into three new parcels of land. Mr. Warren presented the staff report describing the location of the property and the proposal. (See Planning Commission Information Sheet dated 10-28-04 for Application No. 2004-010 and the Public Works' Director/City Engineer's memo dated 10/25/04, attached.) The properties under consideration are zoned R-1 (Willow Lane School and Willow Lane Park), R-2 (lot at southwest corner of Brooklyn Boulevard and 71 St Avenue North), R-4 (interior lot fronting on Brooklyn Boulevard between Willow Lane School property and the above mentioned corner lot). Commissioners Newman and Reem inquired about access in and out of the site as well access to the Willow Lane School from the newly created facility. Mr. Warren explained how a separation would be cr eated between the tw o sites and demon d how t e' ould be laid with strate h srte w out 10-28-04 Page 1 ingress and egress onto Brooklyn Boulevard including a recommended concrete delineatar between the in and out lanes. He pointed out that there would be no vehicle connection between the Willow Lane Early Childhood Center and the new proposed Adult Education facility. APPLICATION NO. 2004-011— ATS R� INC. (ON BEHALF OF OSSEO SCHOOL DISTRICT NO. 2791 Ghair ProTem Newman introduced Application No. 2004-01 l, which consists of a request from ATS R, Inc. on behalf of Osseo School District No. 279 for rezoning from R-1, R-2 and R-4 to C-1 of a 3.63 acre parcel of land to be created under Planning Commission Application No. 2004-010. The parcel will be created through a replatting of this area (See Planning Commission No. 2004-010) by combining the northeast portion of the Willow Lane School site along with two vacant multiple residential paxcels (R-2 and R-4) immediately to the north. The proposed new lot wouid abut Brooklyn Boulevard and 71 Avenue North. Mr. Warren presented the staff report using an overhead transparency to show the location of the property and the proposal. (See Planning Commission Information Sheet dated 10-28-04 for Application No. 2004-01 l, attached). Mr. Warren explained that the applicant is also seeking Preliminary Plat approval Under Application No. 2004-010 and Site and Building Plan approval and a Special Use Permit under Application No. 2004-012 for a three story, 48,600 sq. ft. service/office building to house the Osseo School District's Adult Education program and a non- profit service rou use. g P Commissioner Lund inquired about the proposed second phase of development which might include a daycare facility on the site and the location of playground equipment. Mr. Warren responded that would be a separate application and those issues would be dealt with at the time the special use permit for a daycare facility is reviewed. APPLICATION NO. 2004-012 ATS R.1NC. /ON BEHALF OF OSSEO SCHOOL DISTRICT NO. 2791 Chair ProTem Newman introduced Application No. 2004-012, a request from ATS R, Inc. on behalf of Osseo School District No. 279, for Site and Building Plan approval and a Special Use Permit for a three story, 48,600 sq. ft. service/office building to house the Osseo School District's Adult Education program and a non-profit service group use. Mr. Warren presented the staff report describing the location of the property and the proposal. (See Planning Commission Information Sheet dated 10-28-04 for Application No. 2004-012, attached). The proposed site is 3.63 acres in area and is being created under the plat proposed under Planning Commission Application No. 2004-010. The site is made up af a portion of the Willow Lane Early Childhood Center (formerly Willow Lane Elementary School) abutting Brooklyn Boulevard and two multi residentially zoned properties (R-2 and R-4) also abutting Brooklyn Boulevard to the north that have recently been acquired by the School District. This site is the subject of the proposed Gl (Service/Office) rezoning of the property comprehended under Planning Commission Application No. 2004-011. Mr. Warren also pointed out that the new building, per ordinance requirements, must be setback at least twice the height of the structure where it abuts R-1 zoned property because the structure is mare than 2%2 stories in height. An adjustment to the plan might have to be made. 10-28-04 Page 2 PUBLIC HEARING APPLICATION NOS. 2004-010. 2004-011 and 2004-012 There was a motion by Commissioner Boeck, seconded by Commissioner Roche, to open the S public hearing on Application Nos. 2004-010, 2004-011 and 2004-012 at 9:19 p.m. The motion passed unanimously. Chair ProTem Newman called for comments from the public. Tom Fabick, Architect for ATS R, Inc. introduced himself and the others present at the meeting with him including Elena Peltsman and Jim Koltus from ATS R and Dave Suman representing the Osseo School District. Commissioner Boeck asked Mr. Fabick about the possibility of an additional fire hydrant on the south side of the site. Mr. Fabick responded that he would address that with City Engineering Department. Commissioner Boeck asked about the drainage proposal and retention pond proposed. He noted that the pond would have to meet Watershed Standards even though no formal Watershed Commission review is required. Chair ProTem Newman inquired about the additional landscape requirements missing from the plan submitted. Mr. Fabick explained that the additional landscaping has been addressed and revisions will be made to their plan. Ms. Agitu Wodaju, 4813 71 Avenue North, indicated that she lives next to the parcels being developed and operates a music business. She stated that she felt she should have had priority to purchase the property in question to operate her business. She expressed an interest in the land and met with the City's Engineering Department. She also contacted the owner who had indicated she did not want to sell it to her. She questioned why she wasn't given the opportunity to buy the property instead of the School District. Mr. Warren explained that the land was privately owned and the owner had the right to sell the property to whomever she chose. It was a private transaction between two parties and the City was not part of the sale of the land. The land has been acquired by the School District and the City is required to respond to theirrequest to develop the land. He pointed out that it would not be appropriate far the City to intervene in the sale of the land. The owner was free to sell to the party she chose. Steve Klein, Executive Director CEAP, introduced himself and stated that CEAP hopes to take occupancy of their portion of the new building by 2006 assuming a reasonable level of financial support and the sale of their existing facility Commissioner Boeck asked Mr. Klein if CEAP will be leasing their space from the School District. Mr. Klein responded that the building will be owned through condominium ownership and each individual will own their own portion of the building. Commissioner Reem inquired about the ownership of the proposed daycare facility. Mr. Klein responded that CEAP will have eight to nine social service tenants leasing space from their building with the daycare being one of them. No other person from the publie appeared before the Commission during the public hearing on Application Nos. 2004-010, 2004-011 and 2004-012. CLOSE PUBLIC HEARING There was a motion by Commissioner Reem, seconded by Commissioner Lund, to close the public hearing on Application Nos. 2004-010, 2004-011 and 2004-012 at 9:39 p.m. The motion passed unanimously. 10-28-04 Page 3 The Chair ProTem called for further discussion or questions from the Commissioners. The Commissioners interposed no objections to a roval of the A lications. rr rr ACTION TO RECOMMEND APPROVAL OF APPLICATION NO. 2004-010-ATS R, INC. (ON BEHALF OF OSSEO SCHOOL DISTRICT NO. 2791 There was a motion by Commissioner Boeck, seconded by Commissioner Roche, to recommend to the City Council that it approve Application No. 2004-010 submitted by ATS R, Inc. on behalf of Osseo Area Schools (ISD 279) for preliminary plat approval two divide and combine a number of parcels of land including the Willow Lane School property, Willow Lane Park property and two vacant multiple family residence parcels of 1and along Brooklyn Boulevard into three new lots subject to the following conditions: l. The final plat is subject to review and approval by the City Engineer. 2. The final plat is subject to the provisions of Chapter 15 of the City Ordinances. 3. Appropriate cross access agreement allowing access frorn the Willow Lane Apartments to the proposed Lot 3 shall be developed and filed with the plat. 4. Appropriate drainage and utility easements as approved by the City Engineer shall be provided to protect pubic utilities and the retention pond. Said easement shall be filed with the final plat. 5. Existing but no longer necessary easements shall be vacated by the City priar to release of the final plat. 6. The location of access to the proposed Lot 3 is subject to final approval and permit by Hennepin County. Voting in favor: Chair PraTem Newman, Commissioners Boeck, Lund, Rahn, Reem and Roche. The motion passed unanimously. ACTION TO RECOMMEND APPROVAL OF RESOLUTION NO. 2004-03 There was a motion by Commissioner Boeck, seconded by Commissioner Reem, to approve Planning Commission Resolution No. 2004-03 regarding the recommended disposition of Planning Commission Application No. 2004-011 submitted by ATS R, Inc. on behalf of Osseo Area Schools (ISD 279) for rezoning from R-1, R-2 and R-4 to G1 of a 3.63 acre parcel of land located at the southwest corner of 71 Avenue North and Brooklyn Boulevard. The motion passed unanimously. Voting in favor: Chair ProTem Newman, Commissioners Boeck, Lund, Rahn, Reem and Roche. And the following voted against the same: None; Whereupon said resolution as declared duly passed and adopted. Resolution 2004-03 is made part of these minutes by attachment. ACTION TO RECOMMEND APPROVAL OF APPLICATION NO. 2004-012 ATS R. INC. (ON BEHALF OF OSSEO SCHOOL DISTRICT NO. 2791 There was a motion by Commissioner Reem, seconded by Commissioner Lund, to recommend to the City Council that it approve ApplicationNo. 2004-012, submitted by ATS R, Inc. for Site and Building Plan approval and a Special Use Permit for a three story, 48,600 sq. ft. 10-28-04 Page 4 service/office building to house the Osseo School District's Adult Education program and a non- profit service group use, subject to the following conditions: S l. The buildin plans are sub�ect to review and a roval b the Building Official with g J PP Y respect to applicable codes priar to the issuance of permits. 2. Grading, drainage, utility and erosion control plans are subject to review and approval by the City Engineer prior to the issuance of permits. 3. Any outside trash disposal facilities and roof top or on ground mechanica� equipment shall be appropriately screened from view and provided with opaque gates. 4. The building is to be equipped with an automatic fire extinguishing system to meet NFPA standards and shall be connected to a central monitoring device in accordance with Chapter 5 of the City Ordinances. 5. An underground irrigation system shall be installed in all landscaped areas to facilitate site maintenance. 6. B-612 curb and gutter shall be provided around all driving and paxking areas. 7. An as-built survey of the property, improvements and utility service lines shall be submitted to the City Engineering Department. 8. Plan approval is exclusive of all signery which is subject to Chapter 34 of the city ordinances. 9. All work performed and materials used for construction of utilities shall conform to the City of Brooklyn Center's current standard specifications and details. 10. The applicant shall enter into an easement and agreement for maintenance and inspection of utility and storm drainage systems prior to the issuance of permits. 11. The applicant shall provide appropriate erosion and sediment control devices on site during construction as approved by the City Engineering Department. 12. The special use permit is granted for the construction of an adult basic education facility and service/office use. Any alteration of expansion of facilities not comprehended by the approval of this special use permit shall require an amendment. 13. The final plat comprehended under Planning Commission Application No. 2004-010 shall be approved by the City Council and filed with Hennepin County prior to the issuance of building permits for this project. 14. The rezoning comprehended under Planning Commission Application No. 2004-011 shall be approved in its entirety prior to the issuance of building permits for the proj ect. 10-28-04 Page 5 15. The 1 p ans shall be modified in the following manner: a. Provide an extension of screening along the 71S Avenue North green strip to provide sufficient screening of the parking lot to the residential property on the opposite side of 71 Avenue. b. Modifications to the lar�'dscape plan to meet the minimum requirement of 330 landscape points. c. To provide a concrete delineatar separating ingress and egress at the access point on Brooklyn Boulevard. d. Light standards that are similar to standards approved under the Brooklyn Boulevard Streetscape �'lan and recently installed during the Brooklyn Boulevard upgrading shall be provided at the access point to the site. 16. The screening plan proposed atid as amended by Condition No. 15a above is considered to be appropriate and consistent with screening requirements in the Zoning Ordinance where G 1 a�uts residentially zone properties. 17. Access to the site along Brookl yn Boulevard is subject to approval by Hennepin County Transportation Departnient and the obtaining of the appropriate permit. 18. Where the proposed building al>uts R-1 zoned property, the building setback shall be no less than twice the height of the building per Section 35-400, Section 4 of the Zoning Ordinance. Voting in favor: Chair ProTem New�nan, Commissioners Boeck, Lund, Rahn, Reem and Roche. The motion passed unanimously. The Council will consider these applicatio�is at its November 8, 2004 meeting. The applicant must be present. Major changes to the applications as reviewed by the Planning Commission will require that they be returned to the Co ission for reconsideration. OTHER BUSINESS Mr. Warren reminded the Commission me.nbers that the next meeting would be on Wednesday, November 10, 2004. There was no other b usiness. ADJOURNMENT There was a motion by Commissioner Rah i, seconded by Commissioner Roche, to adjourn the Planning Commission meeting. The motion passed unanimously. The meeting adjourned at 9:47 p.m. Chair ProTem Recorded and transcribed by: Rebecca Crass 10-28-04 Page 6 MINUTES OF THE PROCEEDINGS Ol' THE PARKS AND RECREATION COMMISSION FOR THE CITY OF BROOKLYN CET TER IN THE COUNTY OF HENNEPIN AND THE STAT�; OF MINNESOTA REGULAR SESSION SEPT EMBER 21, 2004 COMM�JNITY ROOM #221 CALL TO ORDER Chairperson Sorenson called the meeting t� order at 7:00 p.m. ROLL CALL Chair Sorenson, Commissioners Ebert, Ha xger, Peterson, Russell, Shinnick and Theis were present. Also present were Councilmember Kay La�man, Public Works Director Todd Blomstrom and Community Activities, Recreation and Ser rices Director Jim Glasoe. APPROVAL OF AGENDA Commissioner Shinnick made a motion, seconded by Commissioner Hauger to approve the meeting agenda as presented. The motion passed unanimously. APPROVAL OF MINUTES June 15, 004 Commissioner Russell made a motion, secunded by Commissioner Shinnick to approve the June 15, 2004 minutes of the Parks and Recreati �n Commission as presented. The motion passed unanimously. COUNCIL LIAISON REPORT Councilmember Lasman reported that the C:ity Council had met in an August retreat and developed this year's City Council goals. C;ouncilmember Lasman noted that unlike past years where there have been 10 to 12 focus areas the Council decided on only four focus areas for 2005. Councilmember Lasman noted that this would help the Council and CiTy staff to focus their time and resources on these issues. Councilmember Lasman described the four focus areas: 1 Redevelopment of the "Opportunity site" area. 2. Sustain City services at current levels. 3. Sustain the street reconstruction �rogram at current levels. 4. Continue current code enforceme:lt efforts. Commissioners asked if there were any potential development plans for the former Jerry's Foods site. Councilmember Lasman responded that she was not aware of any current development plans for that site, but that the Council was actively looking at redevelopment of the Opportunity Site as designated iil the recent Metropolitan Council study. Councilmember Lasman indicated that she, along with other council members and staff had visited the Excelsior and Grand redevelopment in Hopkins. Councilmember Lasman indicated that the mix of office, commercial, town houses and green space was indicative of what the council would be considering. Councilmember Lasman commented on the construction of the new Transit Hub and indicated a late Deceinber completion was anticipated. Councilmember Lasman reported that Brookdale had signed a new marketing management firm. Commissioners asked about the 2005 budget development. Councilmember Lasman noted the City would incur another $335,000 in Local Government Aid reduction in 2005. Council member Lasman reported that the preliminary budget plan was to increase the tax levy by 3%, and to levy back the lost LGA for 2005. WILLOW LANE SCHOOL LAND SWAP CARS Director Glasoe informed the Commission that the Osseo School District had approached the City regarding a potential land swap related to Willow Lane Park. Mr. Glasoe noted the school district had been working for some time to find a location for an Adult Basic Education/Adult Leaning Center. Mr. Glasoe added the District had assembled land adjacent to Willow Lane School. However, the site was not large enough to construct the building, accommodate the necessary parking aild fulfill the storm water ponding requirements. As a result, Mr. Glasoe indicated the school district had approached the City regarding the idea of land swap. Public Works Director Blomstrom described the proposed land swap including the two parcels identified for consideration. Mr. Blomstrom noted the land area the city would receive (43,250 sq ft) was slightly larger than the area the city would be giving (37,200 sq ft.) up.� Mr. Blomstrom explained that the City would be vacating a portion of a ball field in the "swap", but would be gaining control of the infield portion of the larger ball field and the area currently used as a general rink in the winters. Mr. Glasoe noted that the City does not currently schedule the field that would be eliminated Mr. Glasoe added the district would be willing to purchase soccer goals for the newly created area. Mr. Blomstrom continued that this area would not be a class "A" soccer field, as it is not inigated and is in the area of the skating rink, which is not typically good tur£ Commissioners discussed the options for using the area adjacent to the skating rink area for soccer. Public Works Director Blomstrom indicated staff would discuss with the District the possibility to use the area between the playground and the skating rink for soccer. After much discussion, Commissioner Russ.ell made a motion, seconded by Commissioner Ebert to recommend to the City Council that the land swap be undertaken. The recommendation also indicated that the land swap would not be considered in conjunction with an earlier request by the Willow Lane School staffto fence the joint playground. The motion passed unanimously. PARKS CAPITAL IMPROMENTS PLAN- BUILDING STORAGE PLAN CARS Director Glasoe introduced the revised Capital Improvements Plan that he and Public Works Director Todd Blomstrom had developed. Mr. Glasoe reminded the Commission that budget reductions of the last two years had significantly affected the schedule of capital improvements in the parks. Mr. Glasoe noted that many planned projects have been deferred, while others were simply dropped. Mr. Glasoe added that the aforementioned budget reductions had also affected the available funds for all capital expenditures. Mr. Glasoe continued that, with these thoughts in mind, staff had developed a revised park improvements plan that staff felt continues to move us forward, but conformed to the limited funding available. Mr. Glasoe shared the revised philosophy was to take on fewer improvements, but do those improvements very well. Mr. Glasoe noted the previous plan envisioned the completion of all improvements at a given park at the same time, the revised plan considers separate, discreet improvements. Mr. Glasoe shared the two areas of focus for the revised plan would be the replacement of shelter buildings and storage for park maintenance materials and park program supplies. Mr. Glasoe continued that, with the coinpletion of replacement of all playground equipment, staff saw replacement of the shelter buildings as a priority. Mr. Glasoe noted that many of these buildings were between 30 and 40 years old. Mr. Glasoe reminded the Commission that the city had begun the process of building replacement shortly before the adoption of the Destination Parks Plan in 2000. Mr. Glasoe pointed out that since 1999, buildings at Bellvue, East Palmer, Firehouse, Happy Hollow, Lions and Twin Lake have been demolished and replaced with picnic shelters. Mr. Glasoe noted that, while these improvements conformed to the destination Parks Plan with respect to amenities that would be contained at each park, they also eliminated valuable storage space for park maintenance and recreation program supplies. Mr. Glasoe continued that, 9,000+ square feet of overall space, and over 3,500 square feet of storage space was eliminated. Mr. Glasoe indicated the need for replacement storage space was noted in the 2000 Capital Improvements Plan. In that plan, a new salt storage was to be constructed at the Central Garage and the existing storage facility would be converted to parks storage. The existing salt storage facility is 3,520 square feet. CARS Director Glasoe noted as justification for the improvement, many efficiencies and benefits were identified. Efficient central storage at the Central Garage and close proximity to the Community Center would significantly reduce staff travel time to retrieve park supplies. Also, security of the equipment and supplies would be enhanced. Mr. Glasoe added, the construction of a new salt storage facility would provide for greater storage capacity and enhanced material handling. This translates into savings in both staff time and materials. Also, Mr. Glasoe noted the new salt storage would provide better salt containment as defined by the NPDES Phase II requirements. Public Works Director Blomstrom indicated the 2000-2004 Capital Improvements Plan allocated $450,000 for the storage work. Mr. Blomstrom added that improvement was subsequently deferred, as a result of the budget reductions. Mr. Blomstrom noted the new plan allocates a similar $450,000 to complete these improvements. CARS Director Glasoe shared that buildings planned for the destination parks are envisioned to be similar in design and plan to the current building at Evergreen Park. The inside area would include a unisex bathroom, a multipurpose space and a small storage/utility area. The roof would extend from the front of the building to provide a covered picnic area. Mr. Glasoe noted the building plans and the corresponding monetary allocations were intended to be conceptual. Actual building designs and refined cost estimates would be developed with Commission involvement over the next many months. Mr. Glasoe continued that buildings planned for the "playfield" parks would include a covered area for picnics, same unheated storage and an integrated enclosure for a portable restroom. Mr. Glasoe added the buildings planned for the "playground" parks would be a simple picnic shelter on a concrete slab. Again, actual building designs and refined cost estimates would be developed with Commission involvement over the next many months. Following some discussion, CARS Director Glasoe presented the revised plan for park improvements in 2005- 2009 as follows: Project Year 2005 Palmer Lake Trail Reconstruction $135,000 Construction activities would include reconstruction of the 2.7-mile Palmer Lake trail. The trail would be consti at a width of 10 feet. Staff is currently in discussion with Three Rivers Park District regarding possible reimbursement of construction costs for this project. Aggressive skate park $30,000 Construction activities will include the purchase of aggressive skate park equipment for the Grandview Park skating rink. This improvement has been held over from the 2004-2008 CIP as a result of the anticipated late season completion date of the skating rink at Grandview. Central Park- Ball Field Lights $108,000 Construction aetivities would include the replacement of the softball field lighting fixtures. Existing poles would be reused. Project Year 2006 Parks Storage Facility $450,000 Gonstruction activities will include the construction of a new materials storage area on city owned property on Camden Avenue. The new facility will include paving of the surface area and fencing of the surrounding area. This area will be used to store aggregate, wood chips and other stockpiled materials. The improvements will also include tlie erection of a new salt storage facility. This new facility will be constructed of low-rise precast concrete panels to match the existing Public Works facility campus and the surrounding commercial buildings. The existing salt storage building will become centralized storage facility for park maintenance and park program equipment. Heavy-duty shelving will be installed to allow for palletized storage. Project Year 2007 Kylawn Park $180,000 Construction activities will include the replacement of the existing shelter building, The new structure will include picnic facilities, a unisex bathroom and a small storagelutility area. This new shelter will be consistent with other destination park facilities. Project Year 2008 West Palmer Park $200,000 Construction activities will include the replacement of the exis�ing shelter building. The new structure will include picnic facilities, a unisex bathroom and a small storage/utility area. This new shelter will be consistent with other destination park facilities. Project Year 2009 Northport Park $75,000 Construction activities will include the replacement of the existing shelter building. The new structure will include picnic facilities and some limited storage space and an integrated enclosure for a portable restroom. CARS Director Glasoe informed the Commission that he and Mr. Blomstrom were not requesting a Commission recommendation related to the revised improvements plan at this meeting. Mr. Glasoe asked that Commissioners consider the revised improvements plan, and come to the October meeting ready to make a recommendation. PALMER LAKE TRAIL RECONSTRUCTION Public Works Director Blomstrom requested the Commission consider adding the reconstruction of the Palmer Lake Trail to the Capital Improvements Plan for 2005. Mr. Blomstrom indicated that he did not like to add projects to the Capital Improvements Plan, but a recent physical survey of the trail indicated several areas where the deterioration was so great that it was a safety hazard. Mr. Glasoe added that the City and Three Rivers Park District were in discussions regarding the possibility of the Park District assisting with the financing of the reconstruction, as that trial section was designated as part of the Three River Regional Trail System. After some discussion, Commissioner Peterson made a motion seconded by-Commissioner Russell to place the Palmer Lake trail reconstruction in the Capital Improvements Plan for 2005. The motion passed unanimously. CITY ORDINANCE REGARDING PARKS AND RECREATION Chair Sorenson directed that this item be held over to the October agenda. TOBACCO FREE PARKS INITIATIVE CARS Director Glasoe noted that the City Council had passed a Resolution supporting tobacco free park areas during organized youth activities. Mr. Glasoe indicated the resolution had been sent to the Tobacco-Free Youth Recreation program for their review related to free signage. Mr. Glasoe noted that the signs would be posted as soon as they were received. TRAIL MARKINGS Chair Sorenson directed that this item be held over to the October agenda. BOAT TRAILER PARKING- TWIN LAKE Chair Sorenson directed that this item be held over until the October meeting. SET NEXT MEETING DATE By consensus, the next meeting of the Parks and Recreation Commission was set for October 19, 2004 at 7:00 p.m. in Community Room #221 of the Brooklyn Center Community Center. MEETING ADJOURNED Commissioner Shinnick made a motion, seconded by Commissioner Russell, to adjourn the meeting at 8:39 p.m. The motion passed unanimously. Member Boeck introduced the following resolution and moved its adoption: PLANI�IING COMMISSION RESOLUTION NO �.�n4_n� RESOLUTION REGARDING THE RECOMMENDED DISPOSITION OF PLAN1�iING APPLICATION NO. 2004-011 SUBMITTED BY ATS R, INC. ON BEHALF OF OSSEO AREA SCHOOLS WHEREAS, Planning Commission Application No. 2004-011 submitted by ATS R, Inc. on behalf of Osseo Area Schools proposes rezoning from R-1 (One Family Residence), R-2 (Two Family Residence) and R-4 (Multiple Family Residence) to G1 (Service/Office) of a proposed 3.63 acres site located at the southwest quadrant of Brooklyn Boulevard and 71 Avenue North; and WHEREAS, the Planning Commission held a duly called public hearing on October 28, 2004 -when a staff report and pubiic testimony regarding the rezoning request were received; and WHEREAS, the Planning Commission considered the rezoning in light of all testimony received, the guidelines for evaluating rezonings contained in Section 35-208 of the City' s Zoning Ordinance and recommendations of the City' s Comprehensive Plan. i NOW, THEREFORE, BE IT RESOLVED by the Planning Advisory Commission of the City of Brooklyn Center to recommend to the City Council that Application No. 2004-011 submitted by ATS R, Inc. on behalf of Osseo Area Schools be approved in consideration of the following: 1. The proposed rezoni.ng to the C-1 zoning designation is considered to be a public benefit by providing land area for service/office development along Brooklyn Boulevard, which is considered to be compatible with surrounding property and land use classifications. 2. All permitted uses in the proposed C-1 zoning district can be contemplated for development or redevelopment of the subject property. 3. The subject property will bear fully the ordinance development restrictions for the G1 zoning district. 4. The property in question is considered to be more suitable for a C-1 rather than multiple family residential designation. The G1 rezoning will allow for service/office uses, which are compatible with, complimentary to and of comparable intensity to adjacent land uses as well as those pernutted on surrounding land. 5. The proposed G1 rezoning proposal is considered consistent with the recommendations of the City' s Comprehensive Plan for this area of the city. 6. The proposed G1 rezoning appears to be a good long range of the existing land and such development can be considered an asset to the community. "7. In light of the above considerations, it is believed that the guidelines for evaluating rezonings contained in Section 35-208 of the City' s Zoning Ordinance are met and the proposal is, therefore, in the best interest of the community. �s Z��) p�� Date Chair Pro Tem ATTEST Ja--�. �'T'.� i Secretary The motion for the adoption of the foregoing resolution was duly seconded by member Reem and upon vote being taken thereon, the following voted in favor thereof: Commissioners Boeck, Lund, Newman, Rahn, Reem and Roche. and the following voted against the same: whereupon said resolution was declared duly passed and adopted. i s Member introduced the following resolution and moved its ado tion: p RESOLUTION NO RESOLUTION REGARDING THE DISPOSITION OF PLANNING APPLICATION NO. 2004-011 SUBMITTED BY ATS R, TNC. ON BEHALF OF OSSEO AREA SCHOOLS WHEREAS, Planning Commission Application No. 2004-011 submitted by ATS R, Inc. on behalf of Osseo Area Schools proposes rezoning from R-1 (One Family Residence), R-2 (Two Family Residence) and R-4 (Multiple Family Residence) to C-1 (Service/fJffice) of a proposed 3.63 acres site located at the southwest quadrant of Brooklyn Boulevard and 71 Avenue North; and WHEREAS the Flannin Commission held a dul called ublic hearin on October g Y P 28, 2004 when a staff report and public testimony regarding the rezoning request were received; and WHEREAS, the Planning Commission recommended approval of Application No. 2004-011 by adopting Planning Commission Resolution No. 2004-03 on October 28, 2004; and WHEREAS, the City Council considered Application No. 2004-011 at its November 8, 2004 meeting; and WHEREAS the Ci Council considered the rezonin in li t of all testimon tY g Y received, the guidelines for evaluating rezonings contained in Section 35-208 of the City's Zoning Ordinance, the City's Comprehensive Plan and the Planning Commission's recommendation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the Ciiy of Bxooklyn Center to approve Application No. 2004-011 submitted by ATS R, Inc. on behalf of Osseo Area Schools in consideration of the following: l. The proposed rezoning to the G1 zoning designation is considered to be a public benefit by providing land area for service/office development along Brooklyn Boulevard, which is considered to be compatible with surrounding property and land use classifications. 2. All permitted uses in the proposed Gl zoning district can be contemplated for development or redevelopment of the subj ect property. 3. The subject property will bear fully the ordinance development restrictions for the C-1 zoning district. RESOLUTION NO 4. The property in question is considered to be more suitable for a Gl rather than multiple family residential designation. The G 1 rezoning will a11ow far service/office uses, which are compatible with, complimentary to and of comparable intensity to adjacent land uses as well as those permitted on surrounding land. 5. The proposed G1 rezoning proposal is considered consistent with the recommendations of the City's Comprehensive Plan for this area of the city. 6. The proposed C-1 rezoning appears to be a good long range use of the existing land and such development can be considered an asset to the community. 7. In light of the above considerations, it is believed that the guidelines for evaluating rezonings contained in Section 35-208 of the City's Zoning Ordinance are met and the proposal is, therefore, in the best interest of the community. N�vemher R, .��4 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. CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 13�' day of December, 2004, at 7:00 p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek Parkway, to consider an Ordinance Amending Chapter 35of the City Ordinances Regarding the Zoning Classification of Certain Land. Auxiliary aids for persons with disabilities are available upon request at least 96 hours in advance. Please contact the City Clerk at 763-569-3300 to make arrangements. ORDINANCE NC� AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES REGARDING THE ZONING CLASSIFICATION OF CERTAIN LAND. (SOUTHWEST CORNER OF BROOKLYN BOULEVARD AND 71 AVENUE NORTH) THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. Cha ter 35 of the Ci Ordinances of the Ci of Brookl Center is hereb P tY tY Yn Y amended in the following manner: Section 35-1110. TWO FAMII.,Y RESIDENCE DISTRICT (R2). The following properties are hereby established as being within the (R2) Two Family Residence District zoning classification: Section 35-1130. MULTII'LE FAMII.,Y RESIDENCE DISTRICT (R4). The following properties are hereby established as being within the (R4) Multiple Family Residence District zoning classification: Section 35-1170. SERVICE/OFFICE DISTRICT (Cl). The following properties are hereby established as being within a(C1) Service/Office District zoning classification: T.�t Rl�ck 1(1scPn Sch��lc Wallnw T,ane Adr�iti�n Section 2. This ordinance shall become effective after adoption and upon thirty days following its legal publication. Adopted this day of 2004. Mayor ATTEST• City Clerk Date of Publication: Effective Date: (Strikeouts indicate matter to be deleted, underline indicates new matter.) City Council Agenda Item No. lla MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Larry Martin, Building Official �J� DATE: November 1, 2004 SUBJECT: City Council Agenda Item/Chapter 3 Ordinance Amendment On the November 8, 2004 City Council agenda is an ordinance amending Chapter 3 of the city ordinances regarding the adopted State Mechanical Code. This change reflects the new mechanical code being adopted by the State that will also be adopted and enfarced by the City of Brooklyn Center. CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 13�' day of December, 2004, at 7:00 p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek Parkway, to consider an Ordinance Amending Chapter 3 of the Brooklyn Center City Ordinances Regarding the Minnesota State Building Code. Auxiliary aids for persons with disabilities are available upon request at least 96 hours in advance. Please contact the City Clerk at 763-569-3300 to make arrangements. ORDINANCE NO AN ORDINANCE AMENDING CHAPTER 3 OF THE CITY ORDINANCES REGARDING THE MINNESOTA STATE BUII.,DING CODE THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. Chapter 3 of the City Ordinances of the City of Brooklyn Center is hereby amended in the following manner: Section 3-101 A. The following chapters of the Minnesota State Building Code are adopted and incorporated as part of the building code for the City of Brooklyn Center. 13. 1346 do A ption of the �9�rnfcn�m- M,nn .s� a Mecharucal Code. Section 2. This ardinance shall become effective after adoption and upon thirty days following its legal publication. Adopted this day of 2004. Mayor ATTEST• City Clerk Date of Publication Effective Date Strikeouts indicate matter to be deleted underline indicates new matter. I i City Council Agenda Item No. llb City of Brooklyn Center A Millennium Community MEMORANDUM TO: Mayar Kragness, Councilmembers Carmody, Las Niesen, and Peppe FROM: Michael J. McCauley, City Manager DATE: October 29, 2004 SUBJECT: Right of Way Maintenance Resolution Attached please find a resolution that the City of Fridley has proposed for consideration by other cities urging an improved level of right of way maintenance by the Minnesota Department of Transportation. If the Council is interested in joining Fridley's efforts to raise the issue of highway maintenance, the attached resolution could be adopted. 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 SUPPORTING AN IMPROVED LEVEL OF RIGHT OF WAY MAINTENANCE BY MN/DOT 1N THE TWIN CITIES METROPOLITAN AREA WHEREAS, as maintenance of government property and facilities is important to the image of Minnesota cities; and WHEREAS, Minnesota cities are responsible for enforcement of property maintenance codes that pertain to the mowing of grass, the abatement of noxious weeds, the placement of trash and junk in yards, and the maintenance of fences; and WHEREAS, the State of Minnesota has many miles of highways running through Minnesota cities; and WHEREAS, the rights of way along these highways are characterized by infrequent mowing, uncollected litter, the presence of noxious weeds and dilapidated fences and guard rails; and WHEREAS as the Minnesota Department of Transportation has cut a ve lar e rY g percentage of their right-away maintenance staff over the last ten years. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that it hereby formally requests the State of Minnesota and the Minnesota Department of Transportation provide immediate support for maintenance for all fences and guard rails on State and Interstate highways, including highway ramps, that traverse Minnesota cities. BE IT FURTHER RESOLVED that the City Council of the City of Brooklyn Center also formally requests that the Minnesota Department of Transportation provide for weekly mowing of State rights-of-way, or alternatively, that they reimburse Minnesota cities for the labor, supplies, and equipment necessary to maintain State rights-of-way in a manner that is consistent with local ordinances governing the upkeep of private property. i Date Mayor ATTEST: City Clerk The motion far the adoption of the foregoing resolution was dul seconded b member Y Y and upon vote being taken thereon, the following voted in favor thereof: e and the followin voted a ainst the same: g g whereupon said resolution was declared duly passed and adopted. I i City Council Agenda Item No. llc S MEMORANDUM BROOKLYN CENTER DATE: November 2, 2004 TO: Michael McCauley, City Manager FROM: Todd Blomstrom, Director of Public Works SUBJECT: Resolution Adopting 2005 Sewer Utility Rates, Fees and Charges Resolution Adopting 2005 Water Utility Rates, Fees and Charges Resolution Adopting 2005 Street Light Rates and Charges Resalution Adopting 2005 Recycling Rates and Charges Attached are four resolutions establishing the 2005 rate schedules for the water, sanitary sewer and street light utilities as well as quarterly recycling fees. The proposed rates are based on the information presented at the City Council and Financial Commission Joint Work Session on October 4, 2004. Water and sanitary sewer rates are proposed to increase by 2.8 percent, which is the same rate adjustment as adopted last year for 2004 rates. The streetlight quarterly charge is proposed to increase 3.0 percent, which is also the same rate adjustment adopted last year. A rate increase for the storm sewer utility is not proposed for 2005. The quarterly recycling fee is proposed to increase $0.20 or approximately 9.3 percent. The recycling fee was not adjusted in 2004. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ADOPTING 2005 SEWER UTILITY RATES, FEES AND CHARGES WHEREAS, the City of Brooklyn Center Charter requires that municipal utilities be self- supporting through revenue provided by a uniform schedule of rates, fees and charges; and WHEREAS, this uniform schedule shall be called the "Public Utility Rate Schedule" and shall be adopted by resolution of the City Council; and WHEREAS, financial requirements for the utility funds have been identified and reviewed by the City CounciL NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the following Sewer Utility rates, fees and charges are hereby adopted and shall be effective for all billings issued on or after January 1, 2005. 2005 SEWER UTILITY RATE SCHEDULE Sewer Rates, Fees and Charges Base Rate Quarterly Residential Single Family Apartment Senior Citizen Year 2005 $57.17 $39.95 $31.44 Non-Residential Rate Year 2005 $2.28 per 1,000 Gallons Fees SAC Charge set by MCES Fee Established by MCES Charges Delinquent account, quarterly charge Greater of $3.00 or 10% of unpaid balance Certification for collection with property taxes $30.00 Line cleaning charge Labor, materials, equipment and overhead Sanitary Sewer Connection Established annually by resolution Date Mayor ATTEST: City Clerk The mohon for the adoption of the foregomg 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. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ADOPTING 2005 WATER UTILITY RATES, FEES AND CHARGES WHEREAS, the City of Brooklyn Center Charter requires that municipal utilities be self- supporting through revenue provided by a uniform schedule of rates, fees and charges; and WHEREAS, this uniform schedule shall be called the "Public Utility Rate Schedule" and shall be adopted by resolution of the City Council; and WHEREAS, financial requirements for the utility funds have been identified and reviewed by the City CounciL NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the following Water Utility rates, fees and charges are hereby adopted and shall be effective for all billings issued on or after January l, 2005. 2005 WATER UTILITY RATE SCHEDULE Water Rates, Fees and Charges Base Rate Year 2005 $1.07 per 1,000 Gallons Q�arterly Minimum Rate Meter Size 2005 Ouarterlv Minimum Char�e 5/8" $7.40 3/4" $11.63 1 $14.79 1 '/z' $19.02 2" $36.99 3" $73.97 4" $125.76 6" $288.50 8 $544.24 10" $724.96 Fees Purchase Water Meter 5/8" or 3/4° $50.00 Purchase Water Meter Larger than 3/4" Cost plus $2.00 Fire protection inspection $50.00 Private hydrant maintenance Labor, materials, equipment and overhead RESOLUTION NO. Charges Delinquent account, quarterly charge Greater of $3.00 or 10% of unpaid balance Certification for collection with property taxes $30.00 8ervice Restoration $30.00 Monday through Friday (except holidays) Between the hours of 7:30 AM and 3:00 PM Service Restoration $80.00 Saturday, Sunday, Holidays and Between the hours of 3:00 PM and 7:30 AM Delinquent meter reading per account $2.00-First Quarter (per consecutive quarter) $4.00-Second Quarter $8.00-Third Quarter $10.00-Fourth and subsequent Quarter Curb stop stand piperepair $40.00 Hydrant Meters 5/8" or 3/4" Meter Deposit $100.00 Daily Rental $2.00 Monthly Rental $20.00 Minimum Rental $20.00 Hydrant Meters 2 1/2° Meter Deposit $700.00 Daily Rental $14.00 Monthly Rental $140.00 Minimum Rental $140.00 Water Connection Established annually by resolution ACH service charge $.50 per quarter per customer 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 Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ADOPTING 2005 STREET LIGHT RATES AND CHARGES WHEREAS, the City of Brooklyn Center Charter requires that municipal utilities be self- supporting through revenue provided by a uniform schedule of rates, fees and charges; and WHEREAS, this uniform schedule shall be called the "Public Utility Rate Schedule" and shall be adopted by resolution of the City Council; and WHEREAS, financial requirements for the utility funds havebeen identified and reviewed by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the following Street Light Utility rates and charges are hereby adopted and shall be effective for all billings issued on or after January l, 2005. 2005 STREET LIGHT UTILITY RATE SCHEDULE Street Light Rates and Charges Quarterly Rates Customer 2005 Ouarterlv Char�e Per Dwelling Unit: Single, Double and Multiple Family Residential $3.21 Per Acre: Parks $5.36 Schools, Government Buildings, Churches $10.71 Retail and Service-Office $16.07 Commercial and Industrial $16.07 Vacant Land and Open Space As Assigned Charges Delinquent account, quarterly charge Greater of $3.00 or 10% of unpaid balance Certification for collection with property taxes $30.00 Date Mayar 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 Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ADOPTING 2005 RECYCLING RATES WHEREAS, the City of Brooklyn Center is a member of the Hennepin Recycling Group (HRG), which is a joint powers group organized pursuant to Minnesota Statutes Section 471.59 (1987); and WHEREAS, the purpose of the joint powers agreement is to create an organization by which member cities may jointly and cooperatively provide for the efficient and economical collection, recycling and disposal of solid waste within and without their respective corporate boundaries in compliance with the Minnesota Waste Management Act, Minnesota Statutes Chapter 115A (1987); and WHEREAS, the HRG has established a curbside recycling program for its member cities to meet the requirements of Hennepin County Or.dinance No. 13, Solid Waste Source Separation for Hennepin County; and WHEREAS, Brooklyn Center Ordinance No. $9-11 authorizes the City to establish rates for recycling services; and WHEREAS, the HRG has established a rate of $2.35 per month per household for recycling services on or after January 1, 2005; and WHEREAS, the rates for recycling services established by the HRG reflect the amount necessary to fund the City's curbside recycling program after projected reimbursement of recycling program costs from Hennepin County. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the recycling rates identified above as established by the HRG are hereby approved and shall be effective for all billings issued on or after January 1, 2005. Date Mayar 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. City Council Agenda Item No. lld Memorandum Date: 4 November 2004 To: Michael McCauley City Manager From: Daniel Jordet Director of Fiscal Support Servic Re: Recommendation for Independe ancial Advisor In September of this year Requests for Proposals (RFPs) were sent to the three independent financial advisor firms working in the municipal finance practice area in our region. This is in accord with the schedule adopted by the City Council requiring RFPs at no more than 6-year intervals for independent financial advisor services. All three firms that were contacted sent responses. These firms were Pubfic Financial Management of Minneapolis, Ehlers Associates of Roseville, and Springsted, Inc. of Saint PauL Their proposals were reviewed by a Review Committee comprised af two members of the Financiaf Commission, Timothy Elftmann and Susan Shogren Smith, two City Council members, Kathleen Carmody and Diane Niesen, the City Manager and the Director of Financial Support Services. The Review Committee interviewed representative from each of the firms on Tuesday, 26 October 2004. Following the interviews, the Review Committee discussed the results for most of an hour. At the conclusion of that discussion the Committee agreed unanimously to recommend to the City Council that Springsted, Inc. be retained as Independent Financial Advisor for the period 2005 through 2010. The attached resolution adopts the recommendation of the Review Committee that Springsted, Inc. be retained as Independent Financial Advisor. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPOINTING INDEPENDENT FINANCIAL ADVISOR WHEREAS, the City of Brooklyn Center has a Council adopted policy of soliciting Requests for Proposals (RFP) for professional services at regular intervals; and WHEREAS, 2004 is a year designed in that policy for solicitation of proposals for Independent Financial Advisor for the City; and WHEREAS; said RFP was distributed to likely responders in September of 2004; and WHEREAS those proposals were reviewed by a Review Committee and interviews of respondents were conducted by said Review Committee; and WHER.EAS said Review Committee recommends that Springsted, Inc. of Saint Paul, Minnesota be appointed as independent financial advisar to the City of Brooklyn Center for a six year period beginning in 2005. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that Springsted, Inc. of Saint Paul, Minnesota is hereby appointed as the independent financial advisor far the City of Brooklyn Center with review of that appointment to be made according to Council adopted policy no more than six yeaxs frorn the effective date of 1 January 2005. November 8, 2004 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. City Council Agenda Item No. lle IVlember introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION COMMENDING ELECTION PERSONNEL ON ADMINISTERING THE NOVEMBER 2, 2004, GENERAL ELECTION WHEREAS, for 30 days prior to Election Day, election personnel assisted a record nun�ber of voters with absentee voting, including mailing applications, verifying registration, and issuing ballots for the correct precinct, as well as serving as a witness for in-person absentee voters; and WHEREAS, Brooklyn Center voters turned out in enormous numbers for the November 2, 2004, General Election, with the highest percent turnout since 1988, along with setting records for new voter registrations and absentee ballots; and WHEREAS, election personnel worked from 6 a.m., November 2, 2004, until 12:40 a.m., November 3, 2004, handling numerous calls from voters requesting polling location information and directions, the local media and interested persons inquiring about election results, and calls from election judges requiring assistance, as well as assisting with the delivery of returns from the election judges until the last election returns were delivered to City Hall; and WHEREAS, election judges prepared the polling loeations with proper signage, voting stations, and supplies, and greeted voters, making certain the voter was in the correct precinct, directed voters to the proper table for either registered or non-registered voters, issued ballots to voters, and processed a record number of new voter registrations. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that it commends the election officials and election judges on their commitment and dedication in administering the 2004 General Election; and expresses its appreciation for the manner in which the election process was conducted with integrity and accuracy. November 8, 2004 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. AGENDA CITY COUNCIL WORK SESSION November 8, 2004 Immediately Following Regular City Council Meeting at 7:00 P.M City Council Chambers 1. Walk a Mi1e exchange program with City of Paynesville a. Discuss if any council members wish to join Mayor Kragness in Paynesville on December 8 b. Discuss visit from Paynesville on November 22nd 2. Smoking Ban a. Discuss taking no further action in light of Hennepin County's smoking ban 3. Typewriter Shop Acquisition on 57th 4. Miscellaneous 5. Adjourn City of �rooklyn Center A Millennium Community To: Mayor Kragness and Council Members Carmody, Lasman, Niesen, and Peppe From: Michael J. McCauley City Manager Date: November 3, 2004 Re: November 8�' Work Session Agenda 1. Walking a Mile exchange program with City of Paynesville a. Discuss if any council members wish to join Mayor Kragness in Paynesville an December 8�' b. Discuss visit from Paynesville on November 22 Mayor Kragness and the Mayor of Paynesville are participating the in the League of Minnesota Cities Walking a Mile exchange program. The Mayoar of PaynesvilIe and at least one council member will be coming to Brooklyn Center on November 22°a, along with the City Administrator, Public Works Director, and Police Chief. Mayor Kragness will be going to Paynesville on Decemher 8 for the Payneville City Council meeting and to tour Paynesville. The question is whether any City Gouncil members would like to go to Paynesville on December 8�" and if you wanf to participate in Paynesville's visit to Brooklyn Center prior to their attendance at the City Council meeting. 2. Smoking Ban a. Discuss taking no further action in light of Hennepin County's smoking ban Given Hennepin County's adoption of an ardinance banning smoking, I am assuming, based on previous Council discussions, that no further action needs to be taken on this issue by the City. The item is on the agenda to determine if that assumption'is correct, or if the Council wants to proceed with any local actions. 3. Typewriter Shop Acquisitian on 57�' Mr. Hoffman has been in contact with the Typewriter Shop owner's representative following the Council's authorization to put them on notice of a potential acquisition through eminent domain. Based on the negotiations, we anticipate presenting a purchase agreement at the November 22 City Council meeting for a purchase price based on the owne�'s recent acquisition. 6301 Shingle Creek Parkway �ecreation 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