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HomeMy WebLinkAbout2001 11-26 CCP Regular Session AGENDA CITY COUNCIL STUDY SESSION November 26, 2001 6:00 P.M. West Fire Station Training Room 1. City Council discussion of agenda items and questions 2. Rep. Debra Hilstrom brief update 3. 2002 August City Council Retreat 4. Request for ordinance change to exempt Savers from Secondhand Goods Dealers requirements 5. Adjourn City of Brooklyn Center A Millennium Community To: Mayor Kragness and C ell Members Lasman, Nelson, Peppe, and Richer From: Michael J. McCauley City Manager Date: November 21, 2001 Re: August City Council Retreat Carl Neu is available August 3 17"', or 23 Council direction is sought to finalize the 2002 meeting schedule by including a date for the August retreat. 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 City of Brooklyn Center A Millennium Community To: Mayor Kragness and Council Member asman, Nelson, Peppe, and Ricker From: Michael J. McCauley City Manager Date: November 21, 2001 Re: Request from Savers Attached is a letter from an attorney representing Savers. As indicated in the letter, Savers is requesting consideration of an ordinance amendment to exempt the sale of used goods purchased from a non - profit for re -sale by a for profit organization. The specific inquiry of the Council is what response you would like to take to the request: - refer to Planning Commission - place on a regular agenda for action • decline to review in light of lengthy and comprehensive process to develop second hand ordinance • discuss and provide direction on review of request. 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 FAEGRE & BENSON LLP 2200 WELLs FARGO CENTER, 90 SOUTH SEVENTH STREET MINNEAPOLIS, MINNESOTA S5402-3901 TELEPHoNE 612.766.7000 FACSIMILE 612.766.1600 GARY L. GANDRUD www.faegre.com gg=drud @faegre.com 612.766.7506 October 29, 2001 Mr. Michael McCauley City Manager City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Re: Proposed Text Amendment to Secondhand Dealers Ordinance Dear Mr. McCauley: I am writing this letter on behalf of my client, TVI, Inc. ( "TVI ") to request consideration of a text amendment to the Brooklyn enter Code of Ordinances concerning o yn C g secondhand dealers. The ordinance, which as adopted applies to TVI, imposes requirements that are impossible for TVI to satisfy. TVI owns and operates Savers, a chain of approximately 97 stores nationwide, five of which are located in the Twin Cities metropolitan area. Savers sells primarily secondhand merchandise consisting principally of clothing and household items, all of which are ether donated directly to Savers or donated to local charities, and which in turn sold in bulk to Savers. TVI has identified Brooklyn Center as an ideal location for a Savers' store and has secured the acquisition rights to the old Jerry's Foods site at 5801 Xerxes Avenue North. TVI has developed a detailed renovation plan for this store, and intends to invest approximately $1,000,000 into the site before opening for business. Prior to committing such a substantial investment, however, TVI must insure that no business impediments exist in Brooklyn Center. In this regard, TVI is very concerned about the application of the recently adopted Brooklyn Center ordinance regarding Secondhand Goods Dealers (Code of Ordinances Sections 23 -650 through 23 -678). As is the case with similar pawn shop ordinances in other municipalities, the ordinance aims to prevent the sale and resale of stolen goods. To obtain a license, business owners are required, among other things, to undergo a detailed background investigation, file a $10,000 surety bond, undergo site plan review, record extremely detailed information regarding the seller of the secondhand goods, and maintain extensive records, to be submitted to the police on a daily basis. While the vast majority of Savers' merchandise is exempted from the ordinance, a small but significant percentage falls under the law bringing Savers within the ordinance's purview. These items include, for example, certain housewares, low value jewelry and toys. Minneapolis Denver Des Moines London Frankfurt Shanghai Mr. Michael McCaully October 25, 2001 Page 2 The ordinance was not intended to apply to businesses such as Savers. The problem that the ordinance seeks to address, the sale and marketing of stolen items, does not exist at Savers stores. Savers acquires all of its merchandise through public donations and from 501(c)(3) charitable organizations, specifically the Epilepsy Foundation of Minnesota and ARC of Hennepin County. All of the goods acquired from such charities are donated to these nonprofit organizations and sold in bulk to Savers. As a result, Savers does not and cannot be the recipient of stolen goods because all of its secondhand merchandise originates from donations. Moreover, while the requirements of the ordinance are appropriate in the pawn shop context, when to Savers, they make doing business in Brooklyn Center extremely difficult, if not entirely impossible. Savers' acquires and sells a high volume of low - ticket, secondhand merchandise, the original owners of which Savers is unaware. As such, it would be impossible for Savers to comply with the provisions of the ordinance as it currently exists. Although TVI has applied for the license in conformity with the ordinance, and its application is currently pending, we believe the City should amend the code to except businesses such as Savers from the licensing requirement. Sales by charitable organizations selling donated goods are already excepted under Section 23- 651(15). We suggest the same rationale for the charitable organization exemption should be extended to sales of goods that have been donated. To this end, we have attached the following proposed amendment. (See Attachment A.) This proposed amendment is entirely consistent with the many other enumerated exceptions and would allow TVI to renovate a dilapidated building, open a new Savers store p P g� p employing dozens of Brooklyn Center residents and serve the surrounding neighborhoods and communities as has happened in numerous other communities in the region. Accordingly, we request that this proposed text amendment be presented to the City Council in November. Thank you for your consideration with regard to this matter. If you have any questions or concerns, please do not hesitate to contact me. Sincerely, Gary J�drud GLG:levcd cc: Charles LeFevere Chief of Police Joel Downer M1:808784.03 I ATTACHMENT A PROPOSED AMENDMENT TO BROOKLYN CENTER CODE OF ORDINANCES SECTION 23- 651(15) 15. Sales by charitable organizations selling donated goods or by other merchants selling secondhand goods, which are acquired exclusively through direct donations or from charitable organizations. R ** REVISED ** CITY COUNCIL MEETING City of Brooklyn Center November 26, 2001 AGENDA 1. Informal Open Forum With City Council - 6:45 p.m. - provides an opportunity for the public to address the Council on items which are not on the agenda. Open Forum will be limited to 15 minutes, it is not televised, and it may not be used to make personal attacks, to air personality grievances, to make political endorsements, or for political campaign purposes. Council Members will not enter into a dialogue with citizens. Questions from the Council will be for clarification only. Open Forum will not be used as a time for problem solving or reacting to the comments made but, rather, for hearing the citizen for informational purposes only. 2. Invocation 3. Call to Order Regular Business 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 29, 2001 — Joint Worksession with Financial Commission 2. November 13, 2001 - Study Session 3. November 13, 2001 - Regular Session 4. November 19, 2001 — Joint Worksession with Financial Commission b. Licenses C. Set Special Meeting on December 10, 2001, 5:30 p.m. at West Fire Station for City Manager's Evaluation ** REVISED ** CITY COUNCIL AGENDA -2- November 26, 2001 8. Public Hearings a. Proposed Amendment to 2001 Community Development Block Grant Program - Resolution Reallocating Urban Hennepin County Community Development Block Grant Funds and Authorizing Execution of Any Third Party Agreement *Requested Council Action: -Open the public hearing. -Take public input. -Close the public hearing. - Motion to adopt resolution. b. Lutheran Social Services Tax - Exempt Financing Project - Resolution Approving and Authorizing the Issuance of Revenue Notes by the City of Brainerd, Minnesota, Under Minnesota Statutes, Sections 469.152 Through 469.165, As Amended, to Finance Property for the Benefit of Lutheran Social Service of Minnesota • Requested Council Action: -Open the public hearing. -Take public input. -Close the public hearing. - Motion to adopt resolution. 9. Council Consideration Items a. Resolution Recognizing Joel Downer in Appreciation for His Dedicated Public Service to the City of Brooklyn Center -Requested Council Action: - Motion to adopt resolution. b. Set December 10, 2001, 6:30 p.m. at West Fire Station for Reception Honoring Police Chief Joel Downer • Requested Council Action: - Motion to set December 10, 2001, 6:30 p.m. for reception honoring Police Chief Joel Downer. C. Mayoral Appointment to Northwest Hennepin Human Services Council Advisory Commission • Requested Council Action: - Motion to ratify Mayoral nomination. ** REVISED ** CITY COUNCIL AGENDA -3- November 26, 2001 d. Resolution Accepting Offer on the Sale of $730,000 General Obligation Improvement Bonds, Series 2001A, and Providing for Their Issuance • Requested Council Action: - Motion to adopt resolution. e. Joint Resolution Requesting Concurrent Detachment from Brooklyn Center and Annexation to Robbinsdale of Certain Property South of TH 100 Pursuant to Minn. Stat. § 414.061 *Requested Council Action: - Motion to adopt resolution. f. Status Report on I -694 Third Lane Project - Resolution Authorizing the Conveyance of City Owned Parcels to the Minnesota Department of Transportation - Resolution Declaring Replacement Land Parcel Adjacent to Central Park to be Non - Significant and Authorizing the Conveyance of the Parcel of Land • Requested Council Action: - Motion to adopt resolutions. g. An Ordinance Establishing the Central Commercial Overlay District -This ordinance is offered this evening for first reading and approval of second reading and public hearing on January 14, 2002. • Requested Council Action: - Motion to approve first reading and set second reading and public hearing for January 14, 2002. 10. Adjournment 11i2t/2001 14:28 ISD 279 PERSONNEL 96512964165 NO.014 P02 Education Funding I €,eueral Fund — General operations of the school district, including salaries and benefits, instructional materials, supplies and custodial operations — Includes categorical funding that can only be used for stated purposes such as funding for special education,' English language learners, Title 1, compensatory, class size reduction, integration aid, grants, etc. Special education and. ELT are under- funded mandates. YI Food Services — School lunch and breakfast programs — Our district program is i self funded and reguires no General Fund dollars. Iii Transportation - Transportation of public and. non- public students to, from and between schools and their. homes — Currently funding of $170 /pupil does not cover costs of $240 /pupil — Remainder funded by general fund. IV Community Service — Community service /education, Early Childhood Family Education, adult and recreation programs — Separate finding or self funding for all psograzns V Capital 0utluy# — Equipment and other higher costs /long term use items only VI Construction — Construction and related costs only VII Debt Redemption — pay off bonds only IX gust and Agency — Memorials and donations only 11/2 1 /2001 14:28 ISD 279 PERSONNEL -j 96512964165 NO.014 P03 2001-02 Revised General Fund Expenditure Budget Information Revised % of Budget Code Description Budget Budget 100'3 Salaries $108,296,279) 66.80 %1 200 1 6 Benefits $25,701,926 16.62 °k 300's Purch. Serv. $20,569,0311 13.30%1 400 -900"3 SupplJOther $5,057,0191 3.27 %1 i I Total ( $154,624,2551 100.00°10 Program Based Budget Costs far 2001.02 Excluded Items $46,805,000 Inflafmnary Increases, Categorical, Fixed Costs, District-wide Special Ed. and ELL Budget (98% Area of 2000 -01) . Elementary Ed. $34,336,8421 Secondary Ed. $34,696,1461 Area Learning Cntr. $2,889,6641 Athletics $1,786,6261 Music $2,121,87 Student Support $3,050,596 lAdmin Support $4,910,027 !instructional Support $3,392,087 [Custodial /Mainten. $7,776,131 [Transportation $4,523,482 t lTotai 1 $99,483,470 Ten Year Employee Pmflle Non- Ratio Ratio Ratio Administrator Licensed Licensed Total Staff/ Students Students Year /Supervisors Staff Staff Students Admin. /Admin /L. Staff ( 1991 97 1185 997 19729 22.49 203.39 / 16.661 I 2000 112 1650 1268 22105 25.16 197,37; 14.26 [Increase 15 365 271 2376_ [Percentage 15.46% 30.80% 27.16% 12.04% I 1 increase End End Operating Costs per Student and Per Classroom Cost/ 00101 00101 K -6 11/1/01 Operational Cost/ Class #walkers #bus % % School Class Rooms Enrollment Casts Student Room /transfers Riders Walkers Riders 10sseo Elementa 14 301 $417,206 $29,800.64 161 127 55.90% 44.10 %1 Garden City 14 321 $396,457 $1,235 $28.316.36 228 97 70.15% 29.86% Park Brook 16 324 $412,495 $1,273 $25,780,94 316 2 99.37% 0.63 %1 10rchard Lane 16 368 $436,627 $1,186 $27,289.19 136 244 35.79% 64.21% [Fair Oaks 29 460 $431,127 $956 $14.866.451 197 260 43.11 %1 56.89°1x1 Rice Lake 32 831 $536,167 $850 $1 @,754.88 446 147 75,21 %1 24.79 %1 [Cedar Island 30 682 $529,105 $7761 $17,636.821 404 263 60-57%1 39.43 %1 roposed Options To Reduos 2002 -03 General Fund Budget Outside Program -Based Budgeting Process - Revised 11/21/01 'Construction Fund Savings Can Only Be Used for Other Construction Projects) Constr." General Operating Constr. Fund N Enrollment "Class Fund Operating Cost/ Phasing Savings � if Rooms if - Savings Costf Class If If ;m Applicable Applicable (Oiler. $ Only Student Room Appl. Appl. uilding CAosure air Oaks - All Adminstration and Support Staff and Operation Costs 450 29 $431,127 $958 $14,86611 $_723,007 -- arden City - All Adminstration and Suppori Staff and Operational Costs 321 14 $396,457 $1,235 $28.318111 $1,117,231 rchard Lane - All Adminstration and Support Staff and Operational Costs 368 16 $436,627 $1,186 $27,209111 $2,661,816 sseaElem. - All Adminstration and Support Staff and Operational Costs 3D1 14 $417,209 $1,386 $29,801 11 $2,404.050 ark Brook - All Adminstration and Support Staff and Operational Costs 324 16 $412,495 $1,273 525,781 Ill $1,145,864 CO edar Island - All Adrrinstration and Support Staff' and Operational Costs 682 30 $529,105 $776 $17,637 1V $534,214 ice Lake - All Adminsb and Support Staff and Operational Costs 631 32 $536,157 $850 $16,7551 $733,853 Year Lease of Elementary Building to Community Ed. for ECFE/ABE/Even Start $27,659 m liminatje K-6 Recess /Shorten Elemier%LW Day Reducing Staff $941.9U ,9 c`o to to 4 Day Week (with eliminated recess) Reducing TransportatiordEnergy /Staff $759,046 Z ,a to AM Day Every Other Day I(indergarten Reducing K Transportation $76,378 M ransportation - All 7 -12 at 2 Miles or More Only $519,225 y ;uaran €eed Expendilure Reduction at ESC $200,0DD .estructure Funding 7-8 Athletics (Community Education Funding and Fees) $3D0,DD0 Ln .estructure Funding/Program 9 -12 Athletics (Fees, Gale Receipts, Boosters) $1,200,000 N) ransportation - Eliminate All Late /Aativily Buses $76.378 .estrudure Funding for 7 -9 Cocurricular Activities (Fee Based) $63,241 ch :estrudure Funding for 10 -12 Cocurricular Activities (Fee Based) $244,825 otal Options $6,720,873 $8,720,035 onservatfon Measures for 2601-02 Budget Only Enrollment General If Fund em Applicable Savings ransportation- All 7 -12 at 2 Miles or More Only $289,729 raasportation - Eliminate Alt late /Activity Buses $36,189 reeze New Hiring undetermined lepfacement of Vacancies Must Be Approved By Division Head $105,()00 naiyze Current Positions To Determine Additional Shifts From General Fund undetermined .educe Remaining District/Building Curric_u_ ium/Staff Development/ $1,308,382 upply /Field Trip Budgets by 10% restructure Funding Spring 7 - 12 Athletics(Fees, Gate Receipts, Boosters) $40 0,000 z o 'ota l Options _ $2,1411.30 m By Board Request at 11/13/01 Board Work Session . a m .p e 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 GENERAL WORK SESSION MEETING WITH FINANCIAL COMMISSION OCTOBER 29, 2001 CONFERENCE ROOM B CALL TO ORDER The Brooklyn Center City Council met for a general work session with the Financial Commission at Brooklyn Center City Hall in Conference Room B and was called to order by Mayor Myrna Kragness at 6:00 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kay Lasman, Ed Nelson, Bob Peppe, and Tim Ricker. Also present: City Manager Michael J. McCauley, Assistant City Manager Jane Chambers, Fiscal and Support Services Director Doug Sell, and Deputy City Clerk Maria Rosenbaum. Financial Commission Members present were Financial Commission Chair Donn Escher, Financial Commissioners Jerry Blarney, Mark Nemec, Jay Hruska, Gavin Wilkinson, Lawrence Peterson, and Tim Elftmann. DRAFT ENTERPRISE FUND BUDGETS (NON - UTILITY) FOR LIQUOR, GOLF, AND EARLE BROWN HERITAGE CENTER City Manager Michael McCauley discussed the draft liquor budget is close to meeting the 2001 budget projections and that in 2002 the budget projects sales roughly at the 2001 budget level. The contribution to the Capital Improvements Fund is increased from $75,000 in 2001 to $100,000 in 2002. Projected net income will sustain the increased contribution and the accumulation of capital funds in the Liquor Fund for fixture and other replacement needs over time. Mayor Kragness questioned the decrease in salaries and the increase in communications. Mr. McCauley explained that the decrease in salaries was due to less management with the closing of the two liquor stores and that the increase in communications was for telephone, advertising, and postage associated with the liquor store at the Cub Foods location. • 10/29/01 -1- DRAFT Mr. McCauley discussed that the draft golf budget for 2002 reflects a slight increase in revenues and an accelerated debt payment is included increasing the debt service from $50,000 to $70,000. The targets for cash balance and capital outlay are being met even with revenues below budget for 2001 because of the weather this year. Mr. McCauley discussed the Earle Brown Heritage Center (EBHC) budget is on track to have better cash flow for operation and some capital operating equipment and facility repairs. As had previously been discussed, EBHC does not have the capacity to meet long -term capital replacement needs and the timing of some of the capital replacement may coincide with the capacity to issue debt after the police and fire bonds are retired. This approach could allow the Community to determine the course of future funding for major capital needs as the facility ages. Councilmember Nelson questioned the increase in management fees. Mr. McCauley discussed that the increase is associated with the business done by Flik Catering Services. Their compensation increases as sales increase if the target profitability is met for sales verses cost of sales. Mr. McCauley informed the Council that he would like to consider transferring $100,000 of cash from the Heritage Center into Heritage Capital Funds for larger capital items.. Financial Commission Chair Donn Escher questioned where the $100,000 would come from since there was not that amount indicated at this time for a transfer. Fiscal and Support Services Director Doug Sell explained that the numbers presented are what was previously presented. Mr. McCauley noted that the money to be transferred is a thought at this time and that staff will take a closer look in December • to see if the transfer is possible. This would use identified, earned cash for larger capital expenditures. Mayor Kragness questioned what the amount is allocated for transfer of other funds. Mr. McCauley informed the Council that is money used for the switching of the Assistant City Manager's responsibilities to include work at the EBHC. This item may be re- considered. UPDATE ON DRAFT GENERAL FUND BUDGET Mr. McCauley updated the Council and Financial Commission on the general fund revenues and informed them that the taxes collected is based on the maximum level and that the levy can always be reduced. The changes since the August 6, 2001, worksession include increased revenues based on levy information from the State, an increased budgeted special assessment construction fund transfer to $480,000 from $409,044, provides additional reimbursement from other funds for time spent by the City Manager and Assistant City Manager to reflect time spent on -the EBHC, Economic Development Authority, and Liquor budgets that continue to be evaluated. 10/29/01 -2- DRAFT • Mayor Kragness questioned the 22.02 percent increase for repair and rental. Mr. McCauley informed the Council that the increase for this allocation is for the central garage replacement costs, which are being lifted to anticipated replacement cost from historical acquisition cost. Councilmember Nelson questioned the debt service to NSP. Mr. McCauley discussed that the money allocated for this was to replace traffic signal light bulbs in the City which was to be an energy savings to Brooklyn Center. Mr. McCauley questioned if the Council would be comfortable with an increase in the contingency fund of $70,000 to $100,000. This money would be added for unexpected costs such as more policing efforts, cosmetics to Brookdale, and /or purposes for weather incidents. Councilmember Peppe questioned if this money would be spent at the discretion of the City Manager or if the Council will be involved. Mr. Escher questioned if the fiscal policy language would be considered when making this decision. Mr. McCauley responded that the narratives will include the expenditures that he will review with the fiscal policy. Councilmember Lasman stated that she likes the idea of the increase and the idea of having the Council work with the City Manager on any issues that arise. Councilmember Peppe stated that he would like a tracking measure of the increase monies to the contingency fund and that the Council should be involved in the process of how to spend the money. • Councilmember Nelson requested that the Council be made aware of how this money is spent. Mr. McCauley informed the Council that the next budget meeting will be on November 19, 2001, and that staff should have a teamsters contract at the November 13, 2001, City Council meeting. SMART GROWTH OPPORTUNITY SITE — KEY ELEMENTS OF PREFERRED OPTION FOR SITE Council discussed key elements for the Smart Growth opportunity site. After much discussion it was the consensus of the Council to suggest the following to the Metropolitan Council for the next stage of the concept development. • Expand hospitality industry (possibility of hotel next to EBHC). • Create a focus and marketable area north of Bass Lake Road, east of Shingle Creek Parkway, to capture an imaginative community focal point. It was suggested to indicate modular, large masses that can be integrated into focused plan. • Potential plaza through entire length providing large, focal space consistent with modular components and ability to attract or create destination amenities. 10/29/01 -3- DRAFT • • Housing with mixed types to include owner occupied, upper rental, and senior with price points not currently available in Community. These types must be sustainable over the long term at upper /upper middle levels with scattered locations and not over concentration. • Enhanced trail and pedestrian access with swales unacceptable. • Address the Transit Hub to County Road 81 and note that location for Transit Hub is not acceptable on any part of Brookdale property. Transit Hub should be part of mixed use development and have full amenities for patrons. • Greenscape. MISCELLANEOUS Mr. McCauley discussed that he is considering the name of the Phil Cohen Community Room for the new room at the Community Center. The Council consensus supported that direction. Mayor Kragness questioned if the Lions should be considered during the naming process. Mr. McCauley informed the Council that he was considering a plaque in the kitchen area since they may provide money towards the remodel of the kitchen at the Community Center. ADJOURNMENT A motion by Councilmember Peppe, seconded by Councilmember Ricker to adjourn the meeting at 8:59 p.m. • City Clerk Mayor 10/29/01 -4- 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 STUDY SESSION NOVEMBER 13, 2001 WEST FIRE STATION — TRAINING ROOM CALL TO ORDER STUDY SESSION The Brooklyn Center City Council met in study session and was called to order by Mayor Myrna Kragness at 6:00 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kay Lasman, Ed Nelson, Bob Peppe, and Tim Ricker. Also Present: City Manager Michael J. McCauley, Assistant City Manager Jane Chambers, and Deputy City Clerk Maria Rosenbaum. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS • Council discussed agenda items 7f, Resolution Authorizing Execution of Amendments to Agreements to Lease Space on Water Towers 42 and #3 to Nextel for the Purposes of Installing Additional Wireless Communications Antennas, 9c, Joint Resolution Requesting Concurrent Detachment from Brooklyn Center and Annexation to Robbinsdale of Certain Property South of TH 100 Pursuant to Minn. Stat. § 414.061, 9d, 2002 Public Utility and Service'Charge Rate Study, 9f, Recommendation from the Park and Recreation Commission Regarding Basketball Courts at Willow Lane Park and Central Park, 9g, Recommendation from the Park and Recreation Commission Regarding American Little League Request, and 8b, Consideration of Renewal Application for a Currency Exchange License From Community Money Centers, Inc. dba Money Centers, 6219 Brooklyn Boulevard. Councilmember Nelson requested that Consent Agenda item 7g, Resolution Establishing 2002 Street and Storm Drainage Special Assessment Rates, be removed and added to Council Consideration Items as agenda item 9j. 2002 DRAFT CITY COUNCIL MEETING SCHEDULE City Manager Michael McCauley requested direction from the Council on how they would like to schedule the 2002 City Council meetings and retreats. It was the consensus of the Council to schedule the Regular City Council meetings on the 2nd and 4`' • Mondays of the month, with a study session starting at 6:00 p.m. and open forum starting at 6:45 p.m. It was noted that Council meetings would be held on May 28, 2002, and November 12, 2002, due to Monday holidays. 11/13/01 -1- DRAFT Mr. McCauley suggested scheduling a meeting with the Commission Chairs on March 18, 2002, a • Commission Recognition on April 15, 2002, (starting at 6:30 p.m.), and the Board of Equalization on May 6, 2002. It was the consensus of the Council that those dates would be suitable. Council discussed possible dates for the Council retreats. It was the consensus of the Council to schedule February 14, 2002, (starting at 2:00 p.m.) for the spring retreat, and have the City Manager check with Mr. Neu regarding August 3, 17, and 24, 2002 for the fall retreat. ANNUAL CITY MANAGER EVALUATION It was the consensus of the Council to proceed with the format previously used for the City Manager's evaluation and that the evaluation will be held on December 10, 2001, at 5:30 p.m. MISCELLANEOUS Council discussed Civic Center expenditures, the Super America site located at 57 and Logan, the development at the corner of 69 "' and Brooklyn Boulevard, the size and cost of the water meter cards, transit hub locations, and a questionnaire that the Mayor received regarding changes in community spirit since the September 11, 2001, attacks. ADJOURNMENT The Council continued into open forum at 6:45 p.m. t City Clerk Mayor s 11/13/01 -2- DRAFT ® MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION NOVEMBER 13, 2001 WEST FIRE STATION — TRAINING ROOM 1. INFORMAL OPEN FORUM WITH CITY COUNCIL CALL TO ORDER INFORMAL OPEN FORUM The Council continued from the study session into informal open forum at 6:45 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kay Lasman, Ed Nelson, Bob Peppe, and Tim Ricker. Also present: Assistant City Manager Jane Chambers, Public Works Director Diane Spector, City Attorney Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum. No one wished to address the Council. ® ADJOURN INFORMAL OPEN FORUM A motion by Councilmember Nelson, seconded by Councilmember Lasman to adjourn informal open forum at 6:54 p.m. Motion passed unanimously. 2. INVOCATION A moment of silence was offered. 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 Kay Lasman, Ed Nelson, Bob Peppe, and Tim Ricker. Also present: Assistant City Manager Jane Chambers, Public Works Director Diane Spector, City Attorney Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum. • 11/13/01 -1- DRAFT 5. PLEDGE OF ALLEGIANCE • The Pledge of Allegiance was spoken. 6. COUNCIL REPORT Councilmember Nelson reported that he attended the Northwest Suburbs Cable Communications meeting on October 25, 2001, and that there was no quorum. The next meeting will be at the end of November to discuss the budget for 2002. Councilmember Lasman reported that on October 30, 2001, she attended and participated in a Halloween pumpkin- carving contest with the St. Alphonsus Cub Scout Troop. She also attended a Year 2000 Celebration meeting and discussed that the Year 2000 Celebration Committee will sponsor a birthday party for Brooklyn Center and that more information will come at later date. Mayor Kragness reported that the Council meetings are now being temporarily held at the West Fire Station, that she attended an Eagle Court of Honor for Brandon Lanier, and a Community Leadership Awards Ceremony on November 8, 2001. 7. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Nelson requested that Consent Agenda Item 7g, Resolution Establishing 2002 Street and Storm Drainage Special Assessment Rates, be removed and added to Council Consideration as 9j so that the City Manager could explain the 2002 rates for clarification. A motion by Councilmember Nelson, seconded by Councilmember Lasman to approve the agenda and consent agenda as amended. Motion passed unanimously. 7a. APPROVAL OF MINUTES A motion by Councilmember Nelson, seconded by Councilmember Lasman to approve the minutes from the October 22, 2001, study and regular sessions. Motion passed unanimously. 7b. LICENSES A motion by Councilmember Nelson, seconded by Councilmember Lasman to approve the following list of licenses. Motion passed unanimously. MECHANICAL Capital City Heating & A/C Inc. 400 East Horsehoe Drive, Shoreview Ramsey Heating & Cooling 15430 Nowthen Blvd., Ramsey Superior Heating A/C & Electric 21322 d Avenue North, Anoka 11/13/01 -2- DRAFT • MOTOR VEHICLE DEALERSHIP ® Brooklyn Center Motors, LLC (dba Luther Brookdale Chrysler Jeep) 6121 Brooklyn Boulevard RENTAL Initial: 4702 68t" Avenue North Christopher LeBarron/Kristina Johnson 5424 70`' Circle North Mary Turcotte 4201 Lakeside Avenue North, 4201 Jack Hansen 3100 O'Henry Road Steve Moore 6401 Scott Avenue North Glenn Berscheit SIGN HANGER DeMars Signs 41093 d Avenue NW, Coon Rapids Leroy Signs, Inc. 6325 Welcome Avenue, Brooklyn Park Minnesota Sign Co. 791 South Garfield, Cambridge TAXICAB Abduikarim Warsame 2515 South 9`" Street, Minneapolis 7c. APPROVAL OF DENTAL INSURANCE RATES • A motion by Councilmember Nelson, seconded by Councilmember Lasman to approve the proposed dental insurance rates. Motion passed unanimously. 7d. RESOLUTION AUTHORIZING AND DIRECTING FUND TRANSFERS TO THE SPECIAL ASSESSMENT CONSTRUCTION FUND AND CAPITAL IMPROVEMENT FUND RESOLUTION NO. 2001 -149 Councilmember Nelson introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING AND DIRECTING FUND TRANSFERS TO THE SPECIAL ASSESSMENT CONSTRUCTION FUND AND CAPITAL IMPROVEMENT FUND The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 7e. APPROVAL OF SITE PERFORMANCE GUARANTEE RELEASE FOR EXTENDED STAY AMERICA AT 2701 FREEWAY BOULEVARD 11/13/01 -3- DRAFT A motion by Councilmember Nelson, seconded by Councilmember Lasman to approve site performance guarantee release for Extended Stay America at 2701 Freeway Boulevard. Motion passed unanimously. 7f. RESOLUTION AUTHORIZING EXECUTION OF AMENDMENTS TO AGREEMENTS TO LEASE SPACE ON WATER TOWERS #2 AND #3 TO NEXTEL FOR THE PURPOSE OF INSTALLING ADDITIONAL WIRELESS COMMUNICATIONS ANTENNAS RESOLUTION NO. 2001 -150 Councilmember Nelson introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING EXECUTION OF AMENDMENTS TO AGREEMENTS TO LEASE SPACE ON WATER TOWERS 42 AND #3 TO NEXTEL FOR THE PURPOSE OF INSTALLING ADDITIONAL WIRELESS COMMUNICATIONS ANTENNAS The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 7g. RESOLUTION ESTABLISHING 2002 STREET AND STORM DRAINAGE SPECIAL ASSESSMENT RATES This item was removed and placed on Council Consideration as item 9j. 7h. RESOLUTION AUTHORIZING THE SUBMITTAL OF A GRANT APPLICATION TO THE SUBURBAN HENNEPIN REGIONAL PARK DISTRICT FOR THE CONSTRUCTION OF A TRAIL FROM TH 100 TO BROOKDALE RESOLUTION NO. 2001 -151 Councilmember Nelson introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE SUBMITTAL OF A GRANT APPLICATION TO THE SUBURBAN HENNEPIN REGIONAL PARK DISTRICT FOR THE CONSTRUCTION OF A TRAIL FROM TH 100 TO BROOKDALE The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 11/13/01 -4- DRAFT • 7i. RESOLUTION AMENDING THE 2001 PAY PLAN TO BE CONSISTENT WITH TEAMSTERS COLLECTIVE BARGAINING AGREEMENT AND AMENDING PERSONNEL RULES AND REGULATIONS TO CLARIFY AUTHORITY TO REIMBURSE MOVING EXPENSES RESOLUTION NO. 2001 -152 Councilmember Nelson introduced the following resolution and moved its adoption: RESOLUTION AMENDING THE 2001 PAY PLAN TO BE CONSISTENT WITH TEAMSTERS COLLECTIVE BARGAINING AGREEMENT AND AMENDING PERSONNEL RULES AND REGULATIONS TO CLARIFY AUTHORITY TO REIMBURSE MOVING EXPENSES The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 8. PUBLIC HEARINGS 8a. AN ORDINANCE VACATING CERTAIN UTILITY EASEMENTS IN BROOKLYN 55 ADDITION ® City Manager Michael McCauley discussed that the City Council approved the final plat for BROOKLYN 55 ADDITION on July 9, 2001, and that this ordinance vacating certain utility easements in BROOKLYN 55 ADDITION would eliminate an overlap at this time rather than further encumber the property with duplicate easements. A motion by Councilmember Lasman, seconded by Councilmember Nelson to continue the Public Hearing. Motion passed unanimously. No one wished to address the Council. A motion by Councilmember Lasman, seconded by Councilmember Peppe to close the Public Hearing. Motion passed unanimously. ORDINANCE NO. 2001 -18 Councilmember Peppe introduced the following ordinance and moved its adoption: AN ORDINANCE VACATING CERTAIN UTILITY EASEMENTS IN BROOKLYN 55 ADDITION The motion for the adoption of the foregoing ordinance was duly seconded by Councilmember Lasman. Motion passed unanimously. 11/13/01 -5- DRAFT 8b. CONSIDERATION OF RENEWAL APPLICATION FOR A CURRENCY • EXCHANGE LICENSE FROM 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 Mr. McCauley discussed that the Minnesota Department of Commerce is required 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 and that the governing municipality is to render a decision regarding issuance or denial of the license. Mr. McCauley informed the Council that there had been no unusual reports from the Police Department and suggested that the Council consider approving the renewal. A motion by Councilmember Lasman, seconded by Councilmember Nelson to open the Public Hearing. Motion passed unanimously. No one wished to address the Council. A motion by Councilmember Lasman, seconded by Councilmember Nelson to close the Public Hearing. Motion passed unanimously. RESOLUTION NO. 2001 -153 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING ISSUANCE OF A CURRENCY EXCHANGE LICENSE TO COMMUNITY MONEY CENTERS, INC. DBA MONEY CENTERS, 6219 BROOKLYN BOULEVARD, BROOKLYN CENTER, MINNESOTA The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Nelson. Motion passed unanimously. 9. COUNCIL CONSIDERATION ITEMS 9a. RESOLUTION EXPRESSING APPRECIATION FOR THE GIFTS OF THE BROOKLYN CENTER LIONS CLUB IN SUPPORT OF OUR HALLOWEEN PARTY AND SAFETY CAMP ACTIVITIES 11/13/01 -6- DRAFT • Mayor Kragness discussed that this resolution would express appreciation for the donation of $400 designated to support the annual Halloween Party and $500 designated to support summer Safety Camp activities. RESOLUTION NO. 2001 -154 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION EXPRESSING APPRECIATION FOR THE GIFTS OF THE BROOKLYN CENTER LIONS CLUB IN SUPPORT OF OUR HALLOWEEN PARTY AND SAFETY CAMP ACTIVITIES The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Ricker. Motion passed unanimously. 9b. RESOLUTION EXPRESSING RECOGNITION FOR AND APPRECIATION OF THE PUBLIC SERVICE OF ORGANIZATIONS PARTICIPATING IN BROOKLYN CENTER'S ADOPT -A -PARK, ADOPT -A- TRAIL, AND ADOPT -A- STREET PROGRAMS Mayor Kragness read the resolution expressing recognition for and appreciation of the public service ® of organizations participating in the Brooklyn Center's Adopt -A -Park, Adopt -A- Trail, and Adopt -A- Street Programs that are as follows: Allina Receivable Services Applebee's Barnacle Bill's Steak & Seafood Boy Scout Troop 4401 Boy Scout Troop #454 Boy Scout Troop #299 Brookdale Chrysler Plymouth Brooklyn Center High School Centaurs Eclipse Program Brooklyn Center Lions Club Brooklyn Center Lioness Club Brooklyn Center Park & Recreation Commission Brooklyn Center Rotary Club Brooklyn United Methodist Church Brookpark Dental Center Bullfrogs and Butterflies Childcare Children's Residential Services Cub Scouts Pack 299 Cub Scouts Pack 401 11/13/01 -7- DRAFT Cub Scouts Pack 454 Earle Brown School Community Evergreen Park School & PTO Friends of Freeway Park Friends of Riverdale Park Garden City Elementary Jill White Kids On The Move Daycare Looney Weavers Minneapolis North Hilton Staff Orchard Lane Elementary School Palmer Lake Elementary Ray and Dolores Beach Rise Creative Partnerships Riverwood Neighborhood Association Target, Brooklyn Center "Good Neighbors" Tim Olson Willow Lane Student Council RESOLUTION NO. 2001 -155 Councilmember Peppe introduced the following resolution and moved its adoption: RESOLUTION EXPRESSING RECOGNITION FOR AND APPRECIATION OF THE PUBLIC SERVICE OF ORGANIZATIONS PARTICIPATING IN BROOKLYN CENTER'S ADOPT -A- PARK, ADOPT -A- TRAIL, AND ADOPT -A- STREET PROGRAMS The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 9c. JOINT RESOLUTION REQUESTING CONCURRENT DETACHMENT FROM BROOKLYN CENTER AND ANNEXATION TO ROBBINSDALE OF CERTAIN PROPERTY SOUTH OF TH 100 PURSUANT TO MINN. STAT. § 414.061 Mr. McCauley discussed that one issue had arisen with the acquiring of some properties in Brooklyn Center as part of this detachment and suggested that the Council may wish to table this item to the November 26, 2001, meeting. A motion by Councilmember Nelson, seconded by Councilmember Lasman to table this resolution to the November 26, 2001, meeting. Motion passed unanimously. 1 -11/13/08- T DRAFT • 9d. 2002 PUBLIC UTILITY AND SERVICE CHARGE RATE STUDY - Resolution Adopting the 2002 Water Utility Rate Schedule - Resolution Adopting the 2002 Sanitary Sewer Utility Rate Schedule - Resolution Adopting the 2002 Storm Drainage Utility Rate Schedule - Resolution Adopting the 2002 Recycling Rates - Resolution Adopting the 2002 Street Light Service District Rate Schedule - Resolution Adopting the 2002 Water and Sanitary Sewer Connection Charges Mr. McCauley discussed that the Council and Financial Commission recently met to discuss the 2002 public utility and service charge rate study and recapped what the rates for 2002 would be if approved this evening. Councilmember Nelson expressed concern regarding the street light service charge of three dollars and the addition of one cent for the resolution relating to water in the City. He suggested starting the new service charge for street light service at one dollar and work up to the amount of three dollars and to add one cent to the resolution regarding the water usage in Brooklyn Center due to the attacks from September 11, 2001. Mayor Kragness reminded Councilmember Nelson that the Council had previously discussed these rates and that the Council was in consensus at the time of discussion. She asked Councilmember Nelson if he was changing his mind on these rates at this time. Councilmember Nelson said he was ® not comfortable with the three dollar rate and requested that the resolutions be adopted separately and not with one motion. RESOLUTION NO. 2001 -156 Councilmember Peppe introduced the following resolution and moved its adoption: RESOLUTION ADOPTING THE 2002 WATER UTILITY RATE SCHEDULE The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. RESOLUTION NO. 2001 -157 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION ADOPTING THE 2002 SANITARY SEWER UTILITY RATE SCHEDULE The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Nelson. Motion passed unanimously. 11/13/01 -9- DRAFT RESOLUTION NO. 2001 -158 Councilmember Ricker introduced the following resolution and moved its adoption: RESOLUTION ADOPTING THE 2002 STORM DRAINAGE UTILITY RATE SCHEDULE The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Peppe. Motion passed unanimously. RESOLUTION NO. 2001 -159 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION ADOPTING THE 2002 RECYCLING RATES The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Nelson. Motion passed unanimously. RESOLUTION NO. 2001 -160 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION ADOPTING THE 2002 STREET LIGHT SERVICE DISTRICT RATE SCHEDULE The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Peppe. Councilmember Nelson abstained from the vote. Motion passed. RESOLUTION NO. 2001 -161 Councilmember Lasman introduced the following resolution and moved its adoption: I RESOLUTION ADOPTING THE 2002 WATER AND SANITARY SEWER CONNECTION CHARGES The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Nelson. Motion passed unanimously. 9e. RECOMMENDATION FROM THE PARK AND RECREATION COMMISSION REGARDING A SOCCER FIELD AT NORTHPORT PARK 11/13/01 -10- DRAFT I Mr. McCauley asked Public Works Director Diane Spector to review the recommendation from the Park and Recreation Commission regarding a soccer field at Northport Park and requested approval of eliminating the west softball field and replacing it with a soccer field. Ms. Spector informed the Council that staff also recommends that the soccer field be irrigated to help promote healthy turf at an estimated cost of $10,000. These funds would be available in the CIP for 2002. Councilmember Lasman questioned the use with the expansion of a soccer field and if the usage would be for adults and youth. Ms. Spector informed the Council that the fields would be used for adult and youth usage and that the Park and Recreation Commission is working with the School District regarding usage of the field. A motion by Councilmember Nelson, seconded by Councilmember Lasman to approve the elimination of the west softball field and replacement with a soccer field. Motion passed unanimously. 9f. RECOMMENDATION FROM THE PARK AND RECREATION COMMISSION REGARDING BASKETBALL COURTS AT WILLOW LANE PARK AND CENTRAL PARK Mr. McCauley discussed that the Park and Recreation Commission recommended that the Council consider converting up to four of the tennis courts to basketball courts. Staff reviewed this recommendation and recommends that two of the four tennis courts be converted to basketball courts, keeping two tennis courts. A motion by Councilmember Peppe, seconded by Councilmember Lasman to approve the conversion of two tennis courts at Central Park to basketball courts and elimination of basketball courts at Willow Lane except for a half court for construction in 2002. Motion passed unanimously. 9g. RECOMMENDATION FROM THE PARK AND RECREATION COMMISSION REGARDING AMERICAN LITTLE LEAGUE REQUEST - RESOLUTION AUTHORIZING DEVELOPMENT OF A CONTRACT IN THE AMOUNT OF 55,000 WITH THE BROOKLYN CENTER AMERICAN LITTLE LEAGUE FOR RECREATIONAL SERVICES FOR BROOKLYN CENTER YOUTH Mr. McCauley discussed that the Park and Recreation Commission is requesting that the City Council enter into a contract with the American Little League to provide recreational services to the youth of Brooklyn Center in the amount of $5,000 which will assist them in making improvements to their facilities. 11/13/01 -11- DRAFT Fred Dinger, 3219 64"' Avenue North, addressed the Council to discuss that the project was estimated originally at 10 000 and that s $ t the new figure is $11,650. The Little League has $5,000 of their own money and had received $2,000 from the Minnesota Twins. Mr. Dinger believes that they will be able to raise the remaining money needed for the improvements. Mr. Dinger provided his home phone number of 560 -2914 if any person was interested in helping with fundraising. RESOLUTION NO. 2001 -162 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING DEVELOPMENT OF A CONTRACT IN THE AMOUNT OF $5,000 WITH THE BROOKLYN CENTER AMERICAN LITTLE LEAGUE FOR RECREATIONAL SERVICES FOR BROOKLYN CENTER YOUTH The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Nelson. Motion passed unanimously. 9h. RESOLUTION APPROVING CONTRACT WITH MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION LOCAL NO. 320 FOR THE CALENDAR YEAR 2001 AND 2002 Mr. McCauley discussed that the City has negotiated with the Minnesota Teamsters Public and Law Enforcement Employees' Union Local No. 320 for a contract for the years 2001 and 2002. This resolution would authorize the Mayor and City Manager to execute a contract with the Teamsters Local No. 320 effective January 1, 2001 through December 31, 2002. RESOLUTION NO. 2001 -163 Councilmember Nelson introduced the following resolution and moved its adoption: RESOLUTION APPROVING CONTRACT WITH MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION LOCAL NO. 320 FOR THE CALENDAR YEAR 2001 AND 2002 The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 9i. RESOLUTION EXPRESSING RECOGNITION FOR AND APPRECIATION OF FAIR OAKS ELEMENTARY SCHOOL FOR PARTICIPATING IN THE RANDOM ACTS OF KINDNESS PROGRAM 11/13/01 -12- DRAFT • Mayor Kragness discussed that Fair Oaks Elementary School nominated four classrooms after the Council recognized and presented certificates to nominees for Random Acts of Kindness and that this resolution would recognize the four classrooms nominated. RESOLUTION NO. 2001 -164 Councilmember Nelson introduced the following resolution and moved its adoption: RESOLUTION EXPRESSING RECOGNITION FOR AND APPRECIATION OF FAIR OAKS ELEMENTARY SCHOOL FOR PARTICIPATING IN THE RANDOM ACTS OF KINDNESS PROGRAM The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 9j. RESOLUTION ESTABLISHING 2002 STREET AND STORM DRAINAGE SPECIAL ASSESSMENT RATES Mr. McCauley discussed that this resolution would establish special assessments for 2002 to be increased to a per unit rate for street reconstruction of $2,400 per parcel and for storm drainage improvements of $790 per parcel. Total assessments for 2002 would then be $3,190 per parcel, ® compared to $3,040 in 2001, which is a 5.2 percent increase. These are rates that would need to be continued to assess about 38 percent of the project cost. RESOLUTION NO. 2001 -165 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION ESTABLISHING 2002 STREET AND STORM DRAINAGE SPECIAL ASSESSMENT RATES The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Nelson. Motion passed unanimously. 10. ADJOURNMENT A motion by Councilmember Nelson, seconded by Councilmember Ricker to adjourn the City Council meeting at 7:45 p.m. Motion passed unanimously. • City Clerk Mayor 11/13/01 -13- 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 GENERAL WORK SESSION MEETING WITH FINANCIAL COMMISSION NOVEMBER 19, 2001 WEST FIRE STATION — TRAINING ROOM CALL TO ORDER The Brooklyn Center City Council met for a general work session with the Financial Commission at the West Fire Station and was called to order by Mayor Myrna Kragness at 6:00 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kay Lasman, Bob Peppe, and Tim Ricker. Councilmember Nelson was absent. Also present: City Manager Michael J. McCauley, Assistant City Manager Jane Chambers, Fiscal and Support Services Director Doug Sell, and Deputy City Clerk Maria Rosenbaum. ® Financial Commission Members present were Financial Commission Chair Donn Escher, Financial Commissioners Jerry Blarney, Jay Hruska, Gavin Wilkinson, and Tim Elftmann. GENERAL FUND REVISIONS City Manager Michael McCauley discussed inforination on tax estimates from Hennepin County and the City Assessor. At this time it appears that the limited market value will result in the pay 2002 taxes being lower than the pay 2001 taxes on the same home in spite of the 20 percent increase in market value for most school districts. Without limited market value many homes would have a net increase in taxes payable 2002 due to the class rate changes that shift tax burden from commercial /industrial property to residential. The differences between school districts for total pay 2001 versus total pay 2002 real estate taxes reflects school referendum levies first appearing on the tax statement in 2002. This causes some residents to experience a net increase in taxes in 2002. Council discussed bond referendums and the amount of money for taxes that is determined by Hennepin County regarding taxes relating to the School Districts in Brooklyn Center. Mr. McCauley informed the Council that the School Districts have voter approved referendums and that makes a difference with the tax rates. 11/19/01 -1- DRAFT Councilmember Lasman requested a summary of what the taxes would have been if the bond referendum had passed in School District No. 279, if possible. Mr. McCauley informed the Council that he would continue to refine the materials for the presentation on December 10, 2001. Mr. McCauley requested direction from the Council and Financial Commission regarding the information to be presented at the budget hearing on December 10, 2001. It was the consensus of the Council and the Financial Commission that the presentation should separate the four School Districts with the City's breakdown for taxes payable in 2002, with pie charts, and should be discussed with levy and aids explained individually. Councilmember Lasman expressed that she believes that the presentation needs to be easily understood, that the residents need to know what is happening with the attack on fiscal balances, and that the City may want to publish an article in the City Newsletter or have available at the budget hearing on December 10, 2001, information such as the League of Minnesota Cities did to explain the changes. Mr. McCauley informed the Council that he is proposing to increase the contingency fund to a total around $157,497 and that the increase be available for general contingency, possible security improvements, police overtime, and training upon City Council approval for the specific transfer of expenditure. He is also proposing to increase appropriations in Central Supplies for general training by $10,000 and Other Contractual Services by $4,000 to allow for the immediate ability to provide for materials and training as the need might arise. Mr. McCauley discussed that after reviewing the reimbursement from Other Funds that proposed a transfer from the Earle Brown Heritage Center (EBHC) to the General Fund to reflect some of the Assistant City Manager's time, he would like to remove that transfer. The money would be directed to the fiscal health of the EBHC and its capital needs. It was the consensus of the Council that these proposed changes were acceptable. OTHER BUDGET ISSUES Councilmember Lasman inquired if there had been any special training needed since the September 11, 2001, attacks that might need extra monies. Mr. McCauley informed the Council that the larger cities are sending staff to more training and that at this time the City of Brooklyn Center has not had to send staff to such special training, but may need to in the future. 11/19/01 -2- DRAFT ® MISCELLANEOUS Financial Commission Chair Donn Escher inquired about the Financial Commission's Annual meeting to be held in January. Mr. McCauley suggested January 17, 2002, and that he would check to see what room would be available. Mr. Escher noted that the meeting would start at 7:00 p.m. wherever it is held. ADJOURNMENT A motion by Councilmember Lasman, seconded by Councilmember Ricker to adjourn the meeting at 7:15 p.m. City Clerk Mayor • 11/19/01 -3- DRAFT • City Council Agenda Item No. 7b ox City of Brooklyn Center A Millennium Community ** REVISED ** TO: Michael J. McCauley, City Manager FROM: Maria Rosenbaum, Deputy City Clerk DATE: November 20, 2001 `IrQ 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 26, 2001. CHRISTMAS TREE SALES LOT PQT Company 5040 Brooklyn Boulevard PQT Company 3245 Bass Lake Road Malmborg's Inc. 5120 North Lilac Drive 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 City Council Agenda Item No. 7c ® There are no materials for this item. • City Council Agenda Item No. 8a I'VIE1VIO RANDUlVI TO: Michael J. McCauley, City Manager FROM: Tom Bublitz, Community Development Specialist �l DATE: November 19, 2001 SUBJECT: Reallocation of Community Development Block Grant (CDBG) Funds From City's Rehabilitation Deferred Loan Program to Shingle Creek Towers Project AMCON, a large Minnesota based construction contractor, is proposing to purchase Shingle Creek Towers, provide major renovation to the building and maintain it as affordable rental housing. AMCON is seeking funding for the rehabilitation and acquisition of Shingle Creek Towers from a number of sources and has requested $500,000 from the City's Community Development Block Grant (CDBG) program, to assist in the project. Shingle Creek Towers is the 122 unit apartment building (77 one bedroom and 45 two bedroom units) located directly south of City Hall. The building was completed in 1974 and was financed • with the assistance of a Federal subsidized loan under the authority of the Department of Housing and Urban Development (HUD) 236 Housing Program. In return for the 236 Program loan, the rental owners were obligated to maintain rents at certain levels through the term of the loan. As with HUD Section 236, and many other project based federal subsidies funded in the 1970's, the terms of the program loans are now ending and owners can convert the properties to market rate rental housing. AMCON proposes to purchase the property, renovate it and maintain it as affordable housing for income eligible and qualified .residents to remain in the property. This will allow the current residents to remain in the building. AMCON's purchase and renovation of the property contemplates numerous sources of funds to complete the purchase and rehabilitation, including assumption of the housing revenue bonds previously approved by the City when Boisclair Corporation proposed a similar acquisition and renovation of the project. Along with the housing revenue bond financing, 75 percent of the units will be eligible to receive federal tax credits under Section 42 of the Internal Revenue Service code. In addition to the housing revenue bond financing and tax credits, AMCON is requesting funding from the State of Minnesota, Hennepin County and City of Brooklyn Center in the form of: • $750,000 deferred loan/grant from the Minnesota Housing Finance Agency (MHFA) under the Preservation Affordable Rental Investment Fund ( PARIF). PARIF is the ® MHFA program used to provide deferred loans /grants for the preservation of federally assisted developments like Shingle Creek Towers. i ® • $400,000 from Hennepin County's Affordable Housing Incentive Fund (AHIF), a fund created by the Hennepin County Board to create /preserve affordable housing in Hennepin County. Funds are awarded in the form of a deferred /low interest loan. • $500,000 from the City of Brooklyn Center's Community Development Block Grant (CDBG) program in the form of a grant. At the request of the City and developer, Springsted, Inc. has reviewed the subsidy request made by the developer. A copy of a letter from Springsted, Inc. to the City's Community Development Director dated November 20, 2001, is included with this memorandum. In the letter, Springsted has concluded that in their opinion, the subsidy assistance requested by the developer is "justifiable". If the City Council approves the reallocation of CDBG funds for this project, it will be the first of the three public agencies to do so. If Hemiepin County or the MHFA does not approve their respective subsidy requests, the project may not go forward. If the project does not proceed, the City Council can reallocate the CDBG funds back to the single family deferred loan program. The project is in process but the financing components are somewhat fluid at this point. The application review and award process is still underway by MHFA and Hennepin County, with awards likely to be announced in December. It should be noted that if this project does not go forward, there will remain a significant possibility the building could be converted to a market rate rental property. ® A public hearing has been scheduled to consider the reallocation of a portion of the City's 2001 CDBG program funds. A copy of the hearing notice is attached. If approved by the City Council, upon conducting a public hearing, $150,000 from program year 2001 CDBG funds, currently used for the rehabilitation of single family properties as part of the deferred loan program, would be reallocated to a new Shingle Creek Towers project. By directly benefiting low and moderate income persons, the Shingle Creek Towers project meets one of the three national objectives for the CDBG program. In addition to the 2001 allocation, an additional $350,000 or $175,000 from the 2002 and 2003 CDBG allocations would be necessary. A preliminary meeting with Hennepin County staff has provided a positive indication of reallocation of 2001, 2002 and 2003 CDBG funds, but formal commitments for these funds would require Hennepin County and HUD approval in addition to the City's action on reallocation. A resolution has been prepared which would reallocate $150,000 from the City's single family deferred loan program to the Shingle Creek Towers project for 2001. Should the Shingle Creek Towers project not go forward or Hennepin County and /or HUD does not approve the reallocation request for future years, the City could reallocate the CDBG funds back to the single family deferred loan program with another public hearing. Representatives from AMCON will be at the November 26 City Council meeting to respond to any questions concerning the project. • 11/20/01 10:18 FAX 6512233002 SPRINGSTED INC. 10 002 85 SEVENTH P1AGE EAST SUITE 100 SAINT PAUL, MN 55101 -2887 651.223.3000 FAX; 651.223.3002 E - MAIL: advisors @springstcd.com SPRINGSTED Advisors to the FuKic Sector November 20, 2001 Mr. Brad Hoffman Community Development Director City of Brooklyn Center 6301 Shingle C g e reek Parkway Brooklyn Center, MN 55446 Dear Mr. Hoffman: The City of Brooklyn Center has asked Springsted to evaluate the subsidy request submitted by the developer of the Shingle Creek Towers project to determine if such request is necessary and appropriate. The purpose of this letter is to summarize our review of the project and indicate whether we believe the project meets the needs test. • "But -For" Review This test identifies whether we feel the project would proceed without the subsidy. With the current development and operating assumptions, the subsidy appears necessary in order to be able to complete the project as anticipated. Even with the subsidy however, we project a negative internal rate of return through the 15th year of the project. In year 2005 the internal rate of return is – 54.76 %, in 2016 it has significantly improved to – 3.58 %. Cash flow is minimally covered in the initial years but proves solid and growing through 2016. Debt service coverage is 114% in year three. The developer uses a 5% vacancy rate that is comparable to the level of performance of other products similar to this in the current market. Conclusion It is our opinion that the project meets the "but -for" test and that this request for subsidy assistance is justifiable. If you have any questions or would like additional information please feel free to call me at 651 223 - 3066. Si r Ke ely, Paul T. Steinman, Vice President Client Representative dv CORPOILirb' OFF' /C£: SAINT PAUL, MN - Visit our Nwebsite at www.sprinbstcd.com DUS MOINF,5, to - MILWAUKEE, WI - MINNEAPOLIS, MN . OVERLAND PARK. K5 - vIFG1NIA 9LACi•1, VA � WASHINGTON. DC City of Brooklyn Center (Official Publication) - CITY OF BROOKLYN CENTER ` PUBLIC FEARIN NOTICE lei PROPOSED AMENDMENT TO COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) 2001 PROGRAM Notice is hereb • y given that Hennepin County and the City of Brooklyn Center, Minnesota will hold a public hearing to consider a proposed amendment to the Hennepin n4c; *w s papers funded ty Community Development Block Grant Program funded under Title I bf the Housing and Community Development AFFIDAVIT OF PUBLICATION Act of 1974 asamended. The City of Brooklyn Center proposes to reallocate $150,000 from Rehabilitation of Private Property to Shin - STATE OF MINNESOTA) gle Creek Towers Housing Project (a new project). The hearing is to be held on November 26, 2001 at 7 p.m. ss. or as soon thereafter as possible in the West Fire Station located at 6250 Brooklyn Boulevard, - Brooklyn Center COUNTY OF HENNEPIN) Minnesota. This public hearing is being held pursuant to a joint coop - Gene Carr, being duly sworn on an oath states or affirms, that he is the interim publisher of the eration agreement between Hennepin County and the City of Brooklyn Center under M.S. 471.59. newspaper known as Sun -Post or the president's designated agent, (Nov 7 2001)PI/Block Grant BC 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. Stat. §331A.02, §331A.07, and other applicable laws, as amended. (B) The printed public notice that is attached was published in the newspaper once each week, for one successive weeks; it was first published on Wednesday, the 7 day of November , 2001, and was thereafter printed and published on every Wednesday to and including Wednesday, the day of , 2001; and printed below is a copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being he size and kind of type used in the composition and publication of the notice: abedef hi'klmno \ g 1 pgrstuvwxyz BY: P'2 President and Publisher Subscribed and sworn to ffirmed bef re me on this day of 2' 2 01. c Nota 1 -'� W„ 5 RATE INFORMATION (1) Lowest classified rate paid by commercial users $ 2.85 oer line for comparable space - — (2) Maximum rate allowed by law $ 6.20 r)er line () Rate actually charged $ 1.40 ner line • its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION REALLOCATING URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND AUTHORIZING EXEUCTION OF ANY THIRD PARTY AGREEMENTS WHEREAS, the City of Brooklyn Center, through execution of a Joint Cooperation Agreement with Hennepin County, is a subrecipient community in the Urban Hennepin County Community Development Block Grant Program; and WHEREAS, pursuant to the Subrecipient Agreement between the City of Brooklyn Center and Hennepin County, the City agrees to assume certain responsibilities for the utilization of Community Development Block Grant funds; and WHEREAS, the City of Brooklyn Center would now like to reallocate Community Development Block Grant funds previously allocated to the City pursuant to the Subrecipient Agreement. BE IT RESOLVED, that the City Council of the City of Brooklyn Center, • Minnesota approves the reallocation of - Community Development Block Grant funds by reallocating $150,000 from the Rehabilitation of Private Property project and allocating $150,000 to the Shingle Creek Towers Project (a new project). BE IT FURTHER RESOLVED, that the City Council hereby authorizes and directs the Mayor and its City Manager to execute any required Third Party Agreement on behalf of the City. 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. 8b S p 470 Pillsbury Center Kennedy 200 South Sixth Street Minneapolis MN 55402 (612) 337 -9300 telephone Graven (612) 337 -9310 fax http://"-A CHARTERED TO: City Administrators and City Attorneys FROM: John Utley, Kennedy & Graven RE: Lutheran Social Services Tax - Exempt Financing Project DATE: November 14, 2001 As we have indicated in previous correspondence, Lutheran Social Services of Minnesota ( "LSS ") is proposing to obtain tax - exempt financing in the form of bonds issued by the City of Brainerd, ® Minnesota to purchase real property and motor vehicles to be located at certain of its facilities in various municipalities of the State of Minnesota. LSS, in seeking tax - exempt financing for these purchases, will realize substantial savings in its cost for capital. These savings will allow LSS to improve its facilities, replace vehicles sooner and attract and maintain quality staff members. Some of the items of real and/or personal property purchased through this bond issue will be distributed to the LSS facility in your city. Pursuant to Minnesota Statutes, Section 469.155, subdivision 9, the City of Brainerd may issue such obligations only upon the approval of the respective city councils of the cities in which such properties are located. To that end, attached for your review, please find a form of resolution to be considered by the city council of your city approving the issuance of such obligations by the City of Brainerd. The resolution is to be considered by the city council following the public hearing for which publication has been arranged. Please review the resolution as soon as possible and let me know if you have any questions or comments. Feel free to adapt the resolution to a format required by your city. Thank you for your assistance in this matter. • Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING AND AUTHORIZING THE ISSUANCE OF REVENUE NOTES BY THE CITY OF BRAINERD, MINNESOTA, UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.165, AS AMENDED, TO FINANCE PROPERTY FOR THE BENEFIT OF LUTHERAN SOCIAL SERVICE OF MINNESOTA WHEREAS, under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152- 469.165, as amended (the "Act "), each municipality and redevelopment agency of the State of Minnesota (as defined in the Act), including the City of Brainerd, Minnesota (the "City of Brainerd "), is authorized to issue revenue obligations to finance capital equipment and improvements to land and buildings for the benefit of a revenue producing enterprise to be owned by a contracting party (as defined in the Act); and WHEREAS, under Section 469.155, subdivision 9, of the Act, the City of Brainerd is authorized to enter into and perform contracts and agreements with other municipalities as the governing bodies of the city and as the other municipalities may deem proper and feasible for or concerning the financing of a project under the Act, including an agreement whereby one ® municipality issues its revenue obligations in behalf of one or more other municipalities; and WHEREAS, the City of Brainerd, has proposed to issue one or more revenue notes (the "Notes ") and loan the proceeds derived from the sale of the Notes to Lutheran Social Service of Minnesota, a nonprofit organization (the `Borrower "), to finance the acquisition of motor vehicles, and the acquisition and construction of improvements to existing buildings (the "Project "), to be located at the existing facilities of the Borrower in numerous municipalities in the State of Minnesota; and WHEREAS, a portion of the Project will be located in the City of Brooklyn Center (the "City ") and at the existing facilities of the Borrower throughout the State of Minnesota; NOW, THEREFORE, BE IT RESOLVED THAT: 1. The portion of the Project to be located in the City (as described in the Notice of Public Hearing published prior to the date of consideration of this resolution) is hereby approved by the City and the issuance of the Notes by the City of Brainerd for such purpose (in the amount described in the Notice of Public Hearing) and in an aggregate principal not to exceed $3,700,000 is hereby approved. 2. Obligations will be issued by the City of Brainerd to finance the Project and the Notes to be issued by the City of Brainerd to finance the Project shall not constitute a charge, • lien, or encumbrance, legal or equitable, upon any property of any other city; and the Notes, when, as, and if issued, shall recite in substance that the Notes, including the interest thereon, are • RESOLUTION NO. payable solely from the revenues received from the Project and the property pledged to the payment thereof, and the Notes shall not constitute an obligation of any other city and shall not be secured by any taxing power of any other city. 3. The Borrower shall pay any and all costs incurred by the cities where the Borrower facilities are located in connection with the portion of the Project located in those cities, whether or not the Project is approved, the Notes are issued, or the Project is carried to completion. 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. 9a • Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION RECOGNIZING JOEL DOWNER IN APPREACATION FOR HIS DEDICATED PUBLIC SERVICE TO THE CITY OF BROOKLYN CENTER WHEREAS, Joel Downer has been an employee of the City of Brooklyn Center January 2, 1973 through December 31, 2001, most recently serving Chief of Police; and WHEREAS, Joel Downer has consistently provided the City of Brooklyn Center and its residents with dedicated public service as a valuable member of the Police Department serving as a Patrol Officer, Sergeant and Captain prior to becoming Chief of the Department; and WHEREAS, Joel Downer has promoted community policing and other innovative approaches to police community relations and effectiveness; and WHEREAS, the City of Brooklyn Center is a better place for the many efforts and dedicated service of Joel Downer. • NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, upon the recommendation of the City Manager, that Friday, January 4, 2002, be and hereby is declared to be Chief Joel Downer Day in the City of Brooklyn Center in recognition and appreciation for his dedicated and valuable service. 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. 9b There are no materials for this item. e City Council Agenda Item No. 9c • 0 Office of the City Clerk City of Brooklyn Center A Millennium Community MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Sharon Knutson, City Clerk �" l `jtlm ' DATE: November 19, 2001 SUBJECT: Mayoral Appointment to Northwest Hennepin Human Services Council Advisory Commission The Northwest Hennepin Human Services Council is a human services planning and coordinating agency serving the cities of Brooklyn Center, Brooklyn Park, Champlin, Corcoran, Crystal, Dayton, Golden Valley, Hanover, Hassan, New Hope, Maple Grove, Osseo, Plymouth, Robbinsdale, and Rogers since 1972. The goals of the Council are to improve access to human services for area residents, raise awareness of human service needs, and coordinate and assist in planning for needed human services in the community. The Advisory Commission is composed of citizen representatives appointed for two -year terms by their respective City Council. As an Advisory Commissioner, representatives are asked to attend one Advisory Commission meeting per month and serve on one Commission committee or task force during the ® year. One vacancy exists on the Advisory Commission with a term expiration of December 31, 2002. Notice of vacancy on the Northwest Hennepin Human Services Council Advisory Commission was published in the Brooklyn Center Sun -Post on October 17, 2001. Notice was posted at City Hall and Community Center and aired on Cable Channel 16 from October 5 through November 2, 2001. A letter was sent to those persons who previously had submitted an application for appointment to a Brooklyn Center advisory commission informing them of the vacancy and requesting that they call the City Clerk if they are interested in applying for the commission. They were given the choice of either reapplying or having their application previously submitted considered. Notices were also sent to current advisory commission members. Attached for City Council Members only is a copy of the application received: Nicole Bauernschmidt 6212 Kyle Avenue North A letter was sent to the applicant notifying her that her application for appointment would be considered at the November 26, 2001, City Council meeting. Other attachments include: 1) Procedures for filling commission vacancies adopted by the City Council on March 27, 1995. 2) Memorandum from Mayor Kragness indicating her nomination. Recommended Council Action: Motion by Council to ratify the Northwest Hennepin Human Services Council Advisory Commission nomination by Mayor Kragness with term expiring December 31, 2002. is . _nl� 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 I • City of Brooklyn Center Procedures for Filling Commission /Task Force Vacancies Adopted by Council 3/27/95 The following process for filling commission/task force vacancies was approved by the City Council at its March 27, 1995, meeting: Vacancies in the Commission shall be filled by Mayoral appointment with majority consent of the City Council. The procedure for filling Commission vacancies is as follows: 1. Notices of vacancies shall be posted for 30 days before any official City Council action is taken; 2. Vacancies shall be announced in the City's official newspaper; 3. Notices of vacancies shall be sent to all members of standing advisory commissions; 4. Applications for Commission membership must be obtained in the City • Clerk's office and must be submitted in writing to the City Clerk; 5. The City Clerk shall forward copies of the applications to the Mayor and City Council; 6. The Mayor shall identify and include the nominee's application form in the City Council agenda materials for the City Council meeting at which the nominee is presented; 7. The City Council, by majority vote, may approve an appointment at the City Council meeting at which the nominee is presented. ® COUNCIL PROCEDURES ESTABLISHED FOR FILLING COMMISSION VACANCIES.DOC Office of the Mayor City of Brooklyn Center A Millennium Community • MEMORANDUM TO: Councilmember Kay Lasman Councilmember Ed Nelson Councilmember Robert Peppe Councilmember Tim Ricker l FROM: Myrna Kragness, Mayor DATE: November 19, 2001 SUBJECT: Northwest Hennepin Human Services Council Advisory Commission Appointment As outlined in our policy for filling commission vacancies, I would request ratification from Council Members for the nomination of Nicole Bauernschmidt, 6212 Kyle Avenue North, to the Northwest Hennepin Human Services Council Advisory Commission with term expiring December 31, 2002. 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) 5 69- 3494 � City Council Agenda Item No. 9d • 85 E. SEVENTH PLACE, SUITE 100 SAINT PAUL, MN 55101 -2887 651.223.3000 FAX: 651.223.3002 E -MAIL: advisors@springsted.com SPRINGSTED Advisors to the Public Sector $730,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2001A (BOOK ENTRY ONLY) AWARD: UNITED BANKERS' BANK SALE: November 26, 2001 Moody's Rating: Al Interest Net Interest True Interest Bidder RstPS Prin Cost Rate UNITED BANKERS' BANK 2.60% 2003 $721,605.00 $163,708.75 4.1565% 2.80% 2004 3.15% 2005 3.45% 2006 3.80% 2007 3.90% 2008 4.10% 2009 4.20% 2010 4.30% 2011 4.40% 2012 CRONIN & COMPANY, INCORPORATED 3.00% 2003 -2004 $721,919.35 $165,381.07 4.1998% MILLER JOHNSON STEICHEN 3.25% 2005 KINNARD, INC. 3.50% 2006 BERNARDI SECURITIES, INCORPORATED 3.75% 2007 4.00% 2008 4.10% 2009 4.20% 2010 4.40% 2011 -2012 RBC DAIN RAUSCHER 2.60% 2003 $721,605.00 $174,561.67 4.4416% 4,00% 2004 -2007 4.10% 2008 4.15% 2009 4.35% 2010 4.45% 2011 4.60% 2012 ------------------------------------------------------------------------------------------------------------------------------------------------------------------ These Bonds are being reoffered at Par. BBI: 5.14% Average Maturity: 5.406 Years CORPORATE OFFICE: SAINT PAUL, MN - Visit our website at www.springsted.com DES MOINES, IA - MILWAUKEE, WI - MINNEAPOLIS, MN - OVERLAND PARK, KS - VIRGINIA BEACH, VA - WASHINGTON, DC OFFICIAL STATEMENT DATED NOVEMBER 7, 2001 Rating: Requested from Moody's NEW ISSUE Investors Service In the opinion of Briggs and Morgan, Professional Association, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and decisions, at the time of their issuance and delivery to the original purchaser, interest on the Bonds is excluded from gross income for purposes of United States income tax and is excluded, to the same extent, in computing both gross 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). interest on the Bonds is not an item of tax preference for purposes of the alternative minimum tax imposed on individuals and corporations; however, interest on the Bonds is taken into account for the purpose of determining adjusted current earnings for purposes of computing the federal alternative minimum tax imposed on corporations. No opinion will be expressed by Bond Counsel regarding other state or federal tax consequences caused by receipt or accrual of interest on the Bonds or arising with respect to ownership of the Bonds. (See 'Tax Exemption" and "Other Federal Tax Considerations " herein.) $730,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2001A (Book Entry Only) Dated Date: December 1, 2001 Interest Due: Each February 1 and August 1, The Bonds will mature February 1 as follows: commencing August 1, 2002 2003 $85,000 2006 $75,000 2009 $70,000 2011 $65,000 2004 $80,000 2007 $75,000 2010 $65,000 2012 $65,000 2005 $80,000 2008 $70,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds, provided that no serial bond may mature on or after the first mandatory sinking fund redemption date of any term bond. 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 City may elect on February 1, 2010, and on any day thereafter, to prepay Bonds due on or after February 1, 2011 at a price of par plus accrued interest. 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. In addition, the City will pledge special assessments against benefited property. Proceeds of the Bonds will be used to finance various improvement projects within the City. The Bonds will be bank - qualified tax - exempt obligations pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986 as amended, and well not be subject to the alternative minimum tax for individuals. A separate proposal for not less than $721,605 must be submitted for the Bonds, along with a certified or cashier's check or a Financial Surety Bond payable to the order of the City in the amount of $7,300. Proposals shall specify rates in integral multiples of 5/100 or 1/8 of 1 %. Rates must be in level or ascending order. Award will be made on the basis of True Interest Cost (TIC). The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"). DTC will act as securities depository of 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 Trust 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 13, 2001. PROPOSALS RECEIVED: November 26, 2001 (Monday) until 11:00 A.M., Central Time AWARD: November 26, 2001 (Monday) at 7:00 P.M., Central Time SPRINGSTED Further information may be obtained from SPRINGSTED Incorporated, Financial Advisor to the Issuer, 85 East Seventh Place, Suite 100, Advisors to the Public Sector Saint Paul, Minnesota 55101 -2887 (651) 223 -3000 For purposes of compliance with Rule 15c2 -12 of the Securities and Exchange Commission, this document, as the same may be supplemented or corrected by the 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 Issuer, 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 which 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 Official 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 furnished on request. r TABLE OF CONTENTS Page(s) Terms of Proposal Introductory Statement ........................ 1 Continuing Disclosure ........ ............................... 1 The Bonds .................... Authority and Purpose .......................... .......................... 4 Security and Financing .. ............................... ....................... 4 Future Financing .. ............................... 5 Litigation...................... ............................... 5 Legality................................... ............................... TaxExemption ............................................. ............................... 5 ............ Other Federal Tax Considerations .................. ............................... 6 ... ............................... Bank- Qualified Tax - Exempt Obligations ........................ 7 Rating.......................... ............................... Financial Advisor ............ ............................... Certification ............... ............................... City Property Values ........ ............................... City Indebtedness ............................... ............................... City Tax Rates, Levies and Collections ............................ Fundson Hand ............................... ............................... ......... 14 CityInvestments ........ ..................................... ......... ......................... ............................... 14 . General Information Concerning the City ........................... ... 15 Governmental Organization and Services .......................................... ............................... 18 Proposed Form of Legal Opinion ............................................. ............................... Appendix I Continuing Disclosure Undertaking ................ ............................... .......................... Appendix II Summary of Tax Levies, Payment Provisions, and Minnesota Real Property Valuation .......... ............................... .. Appendix III ........................... Selected Annual Financial Statements ...................................................... ........ Appendix IV i Proposal Forms ........................... ... Inserted (This page was left blank intentionally.) THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $730,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2001A (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, November 26, 2001, 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 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. 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 of the Proposal submitted. DETAILS OF THE BONDS The Bands will be dated December 1, 2001 as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2002. 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: 2003 $85,000 2006 $75,000 2009 $70,000 2011 $65,000 2004 $80,000 2007 $75,000 2010 $65,000 2012 $65,000 2005 $80,000 2008 $70,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds, provided that no serial bond may mature on or after the first mandatory sinking fund redemption date of any term bond. 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 "Last Year of Serial Maturities" and "Years of Term Maturities" in the spaces provided on the Proposal Form. 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, 2010, and on any day thereafter, to prepay Bonds due on or after February 1, 2011. Redemption may be in whole or in part and if in part at the option of the -i - 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 I 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 property. The proceeds will be used to finance various improvement projects within the City. TYPE OF PROPOSALS Proposals shall be for not less than $721,605 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 $7,300, payable to the order of the City. If a check is used, it must accompany the proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety ond may b drawn y y e awn by the City to satisfy the Deposit requirement. 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 which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. -ii- __ r CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Ms. Mary Dyrseth, 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 which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City f p ty or an loss suffered b the City b reason of the Y Y Y Y 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 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 30 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 22, 2001 BY ORDER OF THE CITY COUNCIL /s/ Sharon Knutson Clerk OFFICIAL STATEMENT $730,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2001A (BOOK ENTRY ONLY) INTRODUCTORY STATEMENT This Official Statement contains certain information relating to the City of Brooklyn Center, Minnesota (the "City" or the "Issuer ") and its issuance of $730,000 General Obligation Improvement Bonds, Series 2001A (the "Bonds," the "Obligations" or the "Issue "). The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge special assessments against benefited properties. Inquiries may be directed to Mr. Douglas Sell, 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 First National Bank Building, 322 Minnesota Street, St. Paul, Minnesota 55101, or by telephoning (651) 223 -6625. CONTINUING DISCLOSURE In order to assist the Underwriters in complying with SEC Rule 15c2 -12 (the "Rule "), pursuant to the Award Resolution and Continuing Disclosure Undertaking to be executed on behalf of the City on or before closing, the City has and will covenant (the "Undertaking ") for the benefit of holders or beneficial owners of the Bonds to provide certain financial information and operating data relating to the City to certain information repositories annually, and to provide notices of the occurrence of certain events enumerated in the Rule to certain information repositories or the Municipal Securities Rulemaking Board and to any state information depository. The specific nature of the Undertaking, as well as the information to be contained in the annual report or the notices of material events is set forth in the Continuing Disclosure Undertaking in substantially the form attached hereto as Appendix 11, subject to such modifications thereof or additions thereto as: (i) consistent with requirements under the Rule, (ii) required by the purchaser of the Bonds from the City and (iii) acceptable to the Mayor and City Manager of the City. The City has never failed to comply in all material respects with any previous undertakings under the Rule to provide annual reports or notices of material events. A failure by the City to comply with the Undertaking will not constitute an event of default on the Bonds (although holders or other beneficial owners of the Bonds will have the sole remedy of bringing an action for specific performance). Nevertheless, such a failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. -1� THE BONDS General Description The Bonds are dated as of December 1, 2001. The Bonds will mature annually on February 1, as set forth on the cover of this Official Statement. The Bonds are issued in book entry form. Interest on the Bonds is payable August 1, 2002 and semi - annually thereafter on February 1 and August 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 Trust 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, 2010, and on any day thereafter, to prepay the Bonds due on or after February 1, 2011. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. Book Entry System The Depository Trust Company DTC New York New York will ac securities depository P rY p Y ( ), t as sec pos tory for the Obligations. The Obligations will be issued as fully- registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered certificate will be issued for each maturity of the Obligations, in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC is a limited - purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds 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 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 turn to be -2- 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 & 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 governed by arrangements among them, subject to any statutory or regulatory requirements 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 alternative, Beneficial Owners may wish to provide their names and addresses to the Registrar and request that copies of the notices be provided directly to them. Redemption notices 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 & Co. (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 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. -3- 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 Obligations 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. AUTHORITY AND PURPOSE The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. Proceeds will be used to finance various improvement projects within the City. The composition of the Bonds is as follows: Project Costs $701,255 Costs of Issuance 20,350 Allowance for Discount Bidding 8,395 Total Bond Issue $730,000 SECURITY AND FINANCING The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City pledges special assessments against benefited property for repayment of the Bonds. Special assessments totaling approximately $700,000 of principal are expected to be filed in 2001 for first collection in 2002. All assessments will be spread over a term of ten years with equal annual payments of principal, and interest charged on the unpaid balance at a rate of 7 %. If collected in full, special assessments are expected to be sufficient to pay 105% of the August 1 interest payment due in the year of collection. Each subsequent February 1 payment of principal and interest will be made from second -half assessment collections, together with surplus first -half collections. An ad valorem tax levy is not expected to be necessary. -4- FUTURE FINANCING The City has no additional borrowing plans for at least 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. LEGALITY The Bonds are subject to approval as to certain matters by Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, as Bond Counsel. Bond Counsel has not participated in the preparation of this Official Statement and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify, any of the financial or statistical statements, or data contained in this Official Statement and will express no opinion with respect thereto. A legal opinion in substantially the form set out as Appendix I to this Official Statement, will be delivered at closing. TAX EXEMPTION 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 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 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 alternative minimum tax applicable to individuals, estates or trusts; provided that interest on the 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 Bonds or arising with respect to ownership of the Bonds. Preservation of the exclusion of interest on the 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 1936, as amended, (the "Code ") that must be satisfied subsequent to the issuance of the 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 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 Bonds. -5- OTHER FEDERAL TAX CONSIDERATIONS Property and Casualty Insurance Companies Property and casualty insurance companies are required to reduce the amount of tax - exempt interest received or accrued during the taxable year on certain obligations required after August 7, 1986, including interest on the Bonds. 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 Bonds. Branch Profits Tax A foreign rei n cor oration is � g p 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 earnings and profits may include tax - exempt municipal bond interest, such as interest on the Bonds. Passive Investment Income of S Corporations Passive investment income, including interest on the Bonds, may be subject to federal income taxation under Section 1375 of the Code for an S corporation that has Subchapter C earnings 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 Bonds but for their designation as qualified tax - exempt obligations. See "Bank- Qualified Tax - Exempt Obligations" 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 Bonds. The receipt or accrual of interest on the 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 Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the Bonds. -6- BANK- QUALIFIED TAX - EXEMPT OBLIGATIONS The City will designate the Bonds as "bank- qualified tax - exempt obligations for purposes of Section 265(b)(3) of the Internal 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. RATING An application for a rating of the Bonds has been made to Moody's Investors Service ( "Moody's "), 99 Church Street, New York, New York. If a rating is assigned, it will reflect only the opinion of Moody's. Any explanation of the significance of the rating may be obtained only from Moody's. There is no assurance that a rating, if assigned, will continue for any given period of time, or that such a rating will not be revised or withdrawn, if in the judgment of Moody's, circumstances so warrant. A revision or withdrawal of the rating may have an adverse effect on the market price of the Bonds. FINANCIAL ADVISOR The City 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 will be furnished with a certificate signed by the appropriate officers of the City. The certificate will state that as of the date of the Official Statement, the Official Statement did not and does not as of the date of the certificate contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. -7- The Omnibus Tax Sill adopted by the Minnesota Legislature during the First Special Session in 2001 made numerous changes to the Minnesota property tax system. Please see Appendix III of this Official Statement for a further discussion of those changes. CITY PROPERTY VALUES 2000 Indicated Market Value of Taxable Property: $1,453,688,431 Calculated by dividing the county assessor's estimated market value of $1,269,070,000 by the 2000 sales ratio of 873% for the City as determined by the State Department of Revenue. 2000 Taxable Net Tax Capacity: $20,924,326 2000 Net Tax Capacity $23,474,512 Less: Captured Tax Increment Tax Capacity (3,296,624) Contribution to Fiscal Disparities (3,762,870) Plus: Distribution from Fiscal Disparities 4,509,308 2000 Taxable Net Tax Capacity $20,924,326 2000 Taxable Net Tax Capacity by Type of Property Residential Homestead $ 8,925,759 42.66% Commercial /Industrial, Public Utility and Personal Property's 9,756,915 46.63 Residential Non - Homestead 2,238,202 10.70 Agricultural 3,450 0.01 Total $20,924,326 100.00% Reflects adjustments for fiscal disparities and captured tax increment tax capacity. Trend of Values Indicated Estimated Taxable Net Market Value(a) Market Value Tax Car)acitv(b) 2000 $1,453,688,431 $1,269,070,000 $20,924,326 1999 1,338,503,666 1,168,513,700 20,387,444 1998 1,190,969,348 1,095,691,800 18,903,047(c) 1997 1,079,197,149 1,021,999,700 19,329,196(c) 1996 1,053,814,226 1,000,069,700 20,815,317 (a) Calculated by dividing the county assessor's estimated market value by the sales ratio as certified for the City each year by the State Department of Revenue. (b) See Appendix/// for an explanation of taxable net tax capacity and Minnesota property tax law. (c) The decrease in taxable net tax capacity for 1997 and 1998 was due to a reduction in property tax class rates as detailed in Appendix 111. -8- Ten of the Largest Taxpayers in the City 2000 Net Taxpaver Tvpe of Property Tax Capacity Talisman Brookdale, LLC Brookdale Mall $1,083,100 Target Corporation Retail /Office 498,840 Hennepin Co. Hotel Association Commercial 336,460 Sears Roebuck and Co. Department Store 300,420 Brookdale Assoc. Ltd Partnership Commercial 302,460 Wickes Furniture Company Industrial 261,800 TLN Lanel A Ltd Partnership Apartments 256,193 Brooklyn Center Ltd Partnership Commercial 248,400 Bradley Real Estate Retail 222,900 Metronic Inc. Industrial 197,740 Total $3,708,313 Represents 17.7% of the City's 2000 taxable net tax capacity. CITY INDEBTEDNESS Legal Debt Limit Legal Debt Limit (2% of Estimated Market Value) $25,381,400 Less: Outstanding Net Debt Subject to Limit (6,760.000) Legal Debt Margin as of October 2, 2001 $18,621,400 General Obligation Debt Supported by Taxes* Principal Date Original Final Outstanding of Issue Amount Purpose Maturitv As of 10 -2 -01 12 -1 -97 $7,900,000 Police and Fire Building 2 -1 -2013 $6,760,000 This issue is subject to the statutory debt limit. -9- General Obligation Debt Supported Primarily by Taxes and /or Special Assessments Principal Date Original Final Outstanding of Issue Amount Purpose Maturitv As of 10 -2 -01 8 -1 -94 $ 835,000 Improvement 2 -1 -2005 $ 360,000 11 -1 -95 780,000 Improvement 2 -1 -2006 420,000 11 -1 -96 1,440,000 Improvement 2 -1 -2007 910,000 12 -1 -97 1,075,000 Improvement 2 -1 -2008 730,000 12 -1 -98 1,085,000 Improvement 2 -1 -2009 845,000 12 -1 -99 1,585,000 Improvement 2 -1 -2010 1,420,000 12 -1 -00 735,000 Improvement 2 -1 -2011 735,000 12 -1 -01 730,000 Improvement (this Issue) 2 -1 -2012 730,000 Total $6,150,000 General Obligation Debt Supported by Tax Increments Principal Date Original Final Outstanding of Issue Amount Purpose Maturitv As of 10 -2 -01 3 -1 -91 $6,050,000 Tax Increment 2 -1 -2004 $2,400,000 2 -1 -92 4,270,000 Tax Increment Refunding 2 -1 -2003 1,550,000 11 -1 -95 4,560,000 Taxable Tax Increment 2 -1 -2011 3,740,000 Total $7,690,000 General Obligation Debt Supported by Revenues (State Allocations and Enterprise Revenues) Principal Date Original Final Outstanding of Issue Amount Purpose Maturitv As of 10 -2 -01 8 -1 -94 $1,830,000 Storm Sewer Revenue 2 -1 -2005 $ 860,000 12 -1 -98 1,585,000 State -Aid Road Refunding 4 -1 -2006 1,345,000 Total $2,205,000 -10- Annual Calendar Year Debt Service Payments Including This Issue G.O. Debt Supported G.O. Debt Supported Primarily by Taxes by Taxes and /or Special Assessments Principal Principal Year Principal & Interest Principal & Interest(a) 2001 (at 10 -2) (Paid) (Paid) (Paid) (Paid) 2002 $ 435,000 $ 738,735.00 $ 780,000 $1,028,195.83 2003 450,000 734,595.00 870,000 1,090,686.25 2004 470,000 734,467.50 860,000 1,043,152.50 2005 495,000 738,113.75 860,000 1,004,827.50 2006 515,000 735,512.50 755,000 863,470.00 2007 540,000 736,640.00 665,000 741,448.75 2008 565,000 736,218.75 495,000 545,362.50 2009 595,000 739,100.00 390,000 420,552.50 2010 625,000 740,273.75 280,000 295,157.50 2011 655,000 739,710.00 130,000 135,622.50 2012 690,000 742,257.50 65,000 66,348.75 2013 725,000 742,762.50 Total $6,760,000( $ 8,858,386.25 $6,150,000(0 $7,234,824.58 G.O. Debt Supported G.O. Debt Supported by Tax Increments by Revenues Principal Principal Year Principal & Interest Principal & Interest 2001 (at 10 -2) (Paid) (Paid) (Paid) (Paid) 2002 $1,540,000 $1,973,892.50 $ 445,000 $ 532,113.75 2003 1,645,000 1,985,412.50 465,000 532,301.25 2004 1,775,000 2,012,302.50 490,000 536,100.00 2005 360,000 531,122.50 510,000 533,470.00 2006 360,000 507,362.50 295,000 300,900.00 2007 385,000 507,585.00 2008 385,000 481,693.75 2009 400,000 470,200.00 2010 415,000 457,693.75 2011 425,000 439,343.75 Total $7,690,000 $9,366,608.75 $2,205,000 $2,434,885.00 (a) Includes the Bonds at an assumed average annual interest rate of 3.65 %. (b) 79. 1 % of this debt will be retired within ten years. (0 96.9% of this debt will be retired within ten years. -11- Summary of General Obligation Direct Debt Gross Less: Debt Net Debt Service Funds(a) Direct Debt Supported by Taxes $6,760,000 $ (456,046) $6,303,954 Supported Primarily by Taxes and /or Special Assessments 6,150,000 (2,034,338) 4,115,662 Supported by Tax Increments 7,690,000 (193,179) 7,496,821 Supported by Revenues 2,205,000 (c) 2,205,000 (a) Debt service funds are as of September 30, 2001 and include money to pay both principal and interest. (b) The City's tax collections are initially placed in the General Fund and are immediately transferred into the debt service fund. (c) The State Aid Road Bonds and the State Aid Road Refunding Bonds are paid from allotments made by the State of Minnesota Municipal State Aid Highway Fund; and the Storm Sewer Bonds are paid directly from net revenues of the Storm Drainage Enterprise Fund. Indirect General Obligation Debt Debt Applicable to 2000 Taxable G.O. Debt Tax Capacity in Citv Taxing Unit(a) Net Tax Capacity As of 10- 2 -01(b) Percent Amount Hennepin County $1,203,615,230 $230,940,000 1.7% $ 3,925,980 Hennepin Parks 894,696,440 31,425,000 2.3 722,775 ISD 11 (Anoka- Hennepin) 151,599,620 191,449,157 1.6 3,063,187 ISD 279 (Osseo) 102,455,196 203,945,000 6.1 12,440,645 ISD 281 (Robbinsdale) 85,879,846 58,275,000 6.3 3,671,325 ISD 286 (Brooklyn Center) 6,846,569 2,860,000 100.0 2,860,000 Metropolitan Council 2,244,229,627(c) 30,480,000( 0.9 274,320 Metropolitan Transit District 1,988,859,543(c) 145,835,000 1.1 1,604,185 Total $28,562,417 (a) Only those taxing units with debt outstanding are shown here. (b) Excludes general obligation tax and aid anticipation debt and revenue supported debt. (c) Represents 1999 taxable net tax capacity. The 2000 value is not yet available. ( Excludes outstanding general obligation bonds and loans supported by sanitary sewer system revenues, 911 user fees or housing rental revenues. Debt Ratios G.O. Net G.O. Indirect & Direct Debt` Net Direct Debt To 2000 Indicated Market Value ($1,453,688,431) 1.23% 3.20% Per Capita (29,172 — 2000 U.S. Census) $614 $1,593 Excludes general obligation debt supported by revenues. -12- CITY TAX RATES, LEVIES AND COLLECTIONS Tax Capacity Rates 2000/01 For 1996/97 1997/98 1998/99 1999/00 Total Debt Only Hennepin County 35.515% 38.386% 40.994% 39.655% 37.624% -0- City of Brooklyn Center 32.875 35.214 36.998 35.369 36.797 0.619% ISD 286 (Brooklyn Center) 56.260 51.567 59.807 44.356 47.211 0.190 Special Districts* 6.659 7.483 8.553 8.426 8.126 -0- Total 131.309% 132.650% 146.352% 127.806% 129.758% 0.809% * Special Districts include Metropolitan Council, Metropolitan Transit District, Metropolitan Mosquito Control, Hennepin County Technical College, Hennepin County Regional Rail Authority, and Hennepin County Parks. NOTE. Property taxes are determined by multiplying the net tax capacity by the tax capacity rate expressed as a percentage. (See Appendix lll.) Tax Levies and Collections Collected During Collected Net Collection Year As of 5 -31 -01 Lew /Collect L_ ew * Amount Percent Amount Percent 2000/01 $8,420,720 (In Process of Collection) 1999/00 8,096,388 $8,044,802 99.4% $8,056,186 99.5% 1998/99 7,880,605 7,824,101 99.3 7,857,179 99.7 1997/98 7,683,341 7,639,492 99.4 7,675,181 99.9 1996/97 6,697,731 6,623,035 98.9 6,576,458 98.2 The net tax levy excludes state aid for property tax relief and fiscal disparities, if applicable. The net levy is the basis for computing tax capacity rates. -13- FUNDS ON HAND As of September 30, 2001 Fund Cash and Investments General $ 6,901,818 Special Revenue 4,481,863 Capital Projects 5,582,257 Debt Service: Special Assessment 2,034,338 Tax Increment 193,179 Building Improvement 456,046 Enterprise 3,851,295 Internal Service 5,701,703 Total $29,202,499 CITY INVESTMENTS The City's investment policy, last revised on March 24, 1997, has the objectives of preserving safety of principal, retaining sufficient liquidity, providing a market rate of return, and yielding a stable return on all invested City funds. Minnesota Statutes, Chapter 118A, authorize and define an investment program for municipal governments. 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 organizations created by an act of Congress; including governmental bills, notes, bonds, and other securities. b. Commercial paper issued by U.S. corporations or their Canadian subsidiaries that is rated in the highest quality by at least two nationally recognized rating agencies and matures in 270 days or less. c. Time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of U.S. banks. d. Repurchase agreements and reverse repurchase agreements may be entered into with financial institutions identified by Minnesota Statutes, Chapter 118A. e. Securities lending agreements may be entered into with financial institutions identified by Minnesota Statutes, Chapter 118A. f. Minnesota joint powers investment trusts may be entered into with trusts identified by Minnesota Statutes, Chapter 118A g. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of short -term securities permitted by Minnesota Statutes, Chapter 118A. h. Bonds of the City of Brooklyn Center issued in prior years may be redeemed at current market price, which may include a premium, prior to maturity using surplus funds of the -14- 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 which seeks to insure the preservation of capital in the overall portfolio. Safety of principal is the foremost objective. Liquidity and yield are also important considerations. It is essential that the investment portfolio remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. The investment portfolio of the City shall be designed to attain a market - average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraints and liquidity needs. Return on investment is of least importance compared to the objectives for safety and liquidity. Securities shall be held to maturity with the exceptions of meeting the liquidity needs of the portfolio and minimizing loss of principal for a security of declining credit. Securities of various maturities shall be purchased so that at least half of the investment portfolio will remain for two or more years with known interest rates. Authority to manage the investment program is vested in the City Manager, City Treasurer, and Assistant City Treasurer, with the City Treasurer responsible for establishing and maintaining an internal control structure to provide reasonable assurance that the objectives of the policy are met. As of September 30, 2001 the City had $29,202,998 (par value) invested, with a market value of $32,936,642 (113% of the original cost to the City). U.S. Treasury notes represented 19.5% of the City's portfolio with $5,700,000 invested. Government agency securities totaled $7,000,000, representing 24% of the portfolio. The balance ($16,502,998), representing 56.5% of the portfolio, is in certificates of deposit, commercial paper, and money market. Ninety -three percent of the City's portfolio matures within three years or less; 96.5% matures within five years or less; and none of the securities held by the City have a maturity later than 2009. 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 2000 U.S. Census count for the City was 29,172, a 1.0% 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 and 11,370 in 1990. The number dropped slightly in 1996 to 11,133 housing units. This was due to the removal of some units by the City in accordance with a pre - planned redevelopment effort. In 1998, the number increased to 11,295. 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. -15- Growth and Development Commercial and industrial property comprises 46.6% of the City's taxable net tax capacity. There are four major shopping centers located in the City in addition to a large number of retail establishments including Kohl's Department Store, Cub Foods, and Rainbow Foods. The largest commercial property in the City is Brookdale Mall, a 1,000,000 square -foot regional shopping center anchored by Marshall Field's, Sears, J.C. Penney's, and Mervyns of California. Plans for remodeling the Brookdale Mall have been finalized. The Applebee's restaurant has been relocated to a new building on the perimeter of the mall to make way for demolition of part of the mall. Construction began in the spring of 2001. The other three retail shopping centers include Brookdale Square, a 125,000 square -foot strip mall center plus an 8- screen theater; Shingle Creek Center, a 157,000 square -foot building anchored by Target; and Brookview Plaza, a 70,000 square -foot center anchored by Best Buy. Another free - standing retail establishment includes the Regal Cinema Theater, an 85,000 square foot, 20 screen theater that opened in the summer of 2000. New construction in 2000 included the completion of the Regal Cinema Theater for $2,390,000; Cub Foods and Brookdale Corner retail stores for $5,320,000; Motel 6 for $3,000,000; Brookpark Dental building shell for $279,200; SuperAmerica car wash for $200,000; and Brooklyn Center Pet Care for $150,000. Other commercial and industrial remodeling projects include Shingle Creek Industrial for $600,000; Medtronic for $70,000; Schmitt Music for $100,000; J.C. Penny's for $100,000, and Sears for $900,000. The convergence of highways in Brooklyn Center make it an attractive site for hotels and motels. Establishments now operating here include: Americlnn, Baymont Inn, Comfort Inn, County Inn & Suites, Extended Stay America Hotel, Hilton Hotel, Holiday Inn, Inn on the Farm, Motel 6, and Super 8 Motel. Summary of Building Permits New Residential Total Permits Permits onlv Year Number Value Number Value 2001 (at 9 -30) 748 $41,038,634 1 $ 149,000 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 1993 520 11,437,250 7 505,000 1992 549 14,249,265 14 948,810 1991 466 8,800,980 7 450,745 -16- J Major Employers in the City Approximate Number Emplover Product/Service of Emnlovees Brookdale Center Shopping Center 1,700 City of Brooklyn Center Government 510* Promeon, Div. of Medtronics Medical Components 300 Hoffman Engineering Electrical Enclosure 270 TCR Corporation Metal Components 175 Ault, Inc. Manufacturing 160 Cass Screw Machine Products Screw Machine Parts 125 Graco, Inc. Spray Paint Equipment 100 I Precision Inc. Electronic Transformers and Coils 100 Hiawatha Rubber Company Custom Rubber Molder 85 Highway 100 Sports Club Health Club 75 Creative Banner Assemblies Banners and Flags 50 * Includes full and part -time employees. Source: A telephone survey conducted October 2001. Labor Force Data September 2001 September 2000 Civilian Unemployment Civilian Unemployment Labor Force Rate Labor Force Rate Hennepin County 678,075 3.7% 661,457 3.2% Minneapolis /St. Paul MSA 1,771,351 3.4 1,732,348 3.2 Minnesota 2,836,864 3.4 2,761,054 3.3 Source: Minnesota Department of Economic Security. 2001 data are preliminary. Financial Institutions Branch facilities of financial institutions located in Brooklyn Center include: Marquette Bank, National Association; Wells Fargo Minnesota, National Association; Firstar Bank of Minnesota, National Association; U.S. Bank, National Association; and TCF National Bank Minnesota, as well as numerous credit unions. Source: http: / /www.ffiec.gov /nic -17- Education The City is served by four independent school districts: ISD 11 (Anoka- Hennepin), ISD 279 (Osseo), ISD 281 (Robbinsdale) and ISD 286 (Brooklyn Center). The City's taxable net tax capacity is attributable to each of the four school districts as follows: Portion of 2000 Taxable Net Tax Capacity Located in the Citv % of Total ISD 286 (Brooklyn Center)* $ 6,846,569 32.7% ISD 281 (Robbinsdale) 5,376,680 25.7 ISD 279 (Osseo) 6,251,444 29.9 ISD 11 (Anoka- Hennepin) 2,449,633 11.7 Total $20,924,326 100.0% * ISD 286 is located entirely within the City of Brooklyn Center. Medical Major medical facilities in the Minneapolis /St. Paul metropolitan area are easily accessible to all City residents. North Memorial Medical Center is located in the adjacent City of Robbinsdale and has 518 acute care beds. Unity Medical Center is located in the adjacent City of Fridley and has 275 acute care beds. GOVERNMENTAL ORGANIZATION AND SERVICES Organization Brooklyn Center has been a municipal corporation since 1911, and is governed under a Home Rule Charter adopted in 1966 and subsequently amended. The City has a Council- Manager form of government. The Mayor and four Council Members are elected to serve overlapping four -year terms. Individuals comprising the current City Council are listed below: Expiration of Term Myrna Kragness Mayor December 31, 2002 Kay Lasman Council Member December 31, 2004 Ed Nelson Council Member December 31, 2002 Robert Peppe Council Member December 31, 2004 Tim Ricker Council Member December 31, 2002 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 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. Douglas Sell, 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. Mr. Sell has served the City as Director of Fiscal and Support Services since May 2001. Previously, Mr. Sell, was the City Administrator with the City of Jordan, Minnesota from September 1997 until May 2001. _18_ Services The City has 160 full -time and 350 part -time employees serving in various departments. Fifty - eight full -time sworn police officers and a support staff of 16 provide protective services in the City. Fire protection is provided by one full -time member and a 48- member volunteer force. The City has two fire stations and a class 5 insurance rating. All areas of the City are serviced by municipal water and sewer systems. Water is supplied by nine wells and storage is provided by three elevated tanks with a combined total capacity of 3.0 million gallons. The municipal water system has a pumping capacity of 17.6 million gallons per day (mgd). The average daily water demand is estimated to be 2.5 mgd and peak demand is estimated to be 10 mgd. Water connections totaled 8,943 as of December 31, 2000. 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 the subsequent year based on actual usage. The City had 8,774 sewer connections at the end of 2000. During 2000, the City leased space for the operation of two of its three municipal liquor store facilities. One of these leases is renewed on a year by year basis. This lease ended in March 2001 and was not renewed. The other was a non - cancelable two year lease which ended in July 2000. This lease was allowed to expire, as the store moved to a new location in August 2000. The City has entered into a ten -year lease with an option of an additional ten at the new second location. Total rental expense under the lease agreements for the years ending December 31, 2000 and 1999 were $117,659 and $69,922, respectively. Future minimum rent payments under non - cancelable leases are as follows: Year Endina Amount 2001 $ 98,169 2002 -2004 91,350 / yr 2005 95,025 2006 -2009 100,170 / yr 2010 58,433 Total $926,357 City offices are located in the Brooklyn Center Civic Center which was constructed in 1971. The Civic Center has a 300 -seat hall, a 50 meter indoor /outdoor swimming pool and exercise and game rooms. 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 9 -hole golf course, 20 playgrounds, softball and baseball diamonds, basketball courts, tennis courts, hockey and skating rinks, nature areas, trails, and an arboretum. -19- 2001 General Fund Budget Summary Revenues: Expenses: Property Taxes $ 7,838,675 General Government $ 1,615,094 Sales Tax (Lodging) 720,000 Public Safety 5,321,012 Fines and Forfeitures 185,000 Public Works 2,710,163 Licenses and Permits 551,165 Social Services 106,035 Intergovernmental Revenue 4,149,058 Parks and Recreation 2,272,864 Service Charges 622,045 Convention and Tourism 342,000 Miscellaneous Revenue 372,000 Community Development 736,175 Nondepartmental 524,435 Administrative Service Reimbursement (770,707) Transfers to Capital Projects 125,000 Transfers to Police and Fire Debt Service 785,492 Transfers to Debt Service 261,336 Transfers to Street Construction 409,044 Total Revenues $14.437.943 Total Expenses $14.437.943 Employee Pension Plans All full -time and certain part -time employees of the City of Brooklyn Center 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 totaled $299,879 and the City's contribution to PEPFF was $223,541 in 2000. The City contributes to the Brooklyn Center Fire Department Relief 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 p asses through State -aids allocated to the Association, all in accordance with enabling tate statutes. City and State -aid contributions g Y 4 totaled $28,020 and $92,155, respectively, in 2000. The actuarial valuation performed at January 1, 1999 was $96,617 which represents funding for normal cost of $71,537, and administration costs of $25,080. -20- APPENDIX I PROPOSED FORM OF LEGAL OPINION 2200 FIRST NATIONAL BANK BUILDING 332 MINNESOTA STREET SAINT PAUL, MINNESOTA 55101 SRI G G S AND TELEPHONE (651) 223 -6600 M O R GAN FACSIMILE (651) 223 -6450 PROFESSIONAL ASSOCIATION 5730,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2001A 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 $730,000 General Obligation Improvement Bonds, Series 2001A, bearing a date of original issue of December 1, 2001 (the "Bonds "). We have examined the law and such certified proceedings and other documents as we deem necessary to render this opinion. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and we express no opinion relating thereto. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation. Based upon such examinations, and assuming the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies and the authenticity of the originals of such documents, and the accuracy of the statements of fact contained in such documents, and based upon present Minnesota and federal laws (which excludes any pending legislation which may have a retroactive effect on or before the date hereof), regulations, rulings and decisions, it is our opinion that; (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 1 -1 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 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 tax 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 alternative minimum tax 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 gross income 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 December, 2001. Professional Association 1-2 APPENDIX 11 CONTINUING DISCLOSURE UNDERTAKING This Continuing Disclosure Undertaking (the "Disclosure Undertaking ") is executed and delivered by the City of Brooklyn Center, Minnesota (the "Issuer "), in connection with the issuance of $730,000 General Obligation Improvement Bonds, Series 2001A (the 'Bonds "). The Bonds are being issued pursuant to a Resolution adopted November 26, 2001 (the "Resolution "). Pursuant to the Resolution and this Undertaking, the Issuer covenants and agrees as follows: SECTION 1. Puroose of the Disclosure Undertaking,. This Disclosure Undertaking is being executed and delivered by the Issuer for the benefit of the Owners and in order to assist the Participating Underwriters in complying with SEC Rule 15c2- 12(b)(5). 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 shall have the following meanings: "Annual Report" shall mean any annual financial information provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Undertaking. "Audited Financial Statements" shall mean the financial statements of the Issuer audited annually by an independent certified public accounting firm, prepared pursuant to generally accepted accounting principles promulgated by the Financial Accounting Standards Board, modified by governmental accounting standards promulgated by the Government Accounting Standards Board. "Dissemination Agent" shall mean such party from time to time designated in writing by the Issuer to act as information dissemination agent and which has filed with the Issuer a written acceptance of such designation. "Fiscal Year" shall be the fiscal year of the Issuer. "Governing Body" shall, with respect to the Bonds, have the meaning given that term in Minnesota Statutes, Section 475.51, Subdivision 9. "MSRB" shall mean the Municipal Securities Rulemaking Board. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The National Repositories as of the date of I execution of this Undertaking are as listed on Exhibit A. "Occurrence(s)" shall mean any of the events listed in Section S.A. of this Disclosure Undertaking. "Official Statement" shall be the Official Statement dated 2001, prepared in connection with the Bonds. II -1 "Owners" shall mean the registered holders and, if not the same, the beneficial owners of any Bonds. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Repository" shall mean each National Repository and each State Depository. "Resolution" shall mean the resolution or resolutions adopted by the Governing Body of the Issuer providing for, and authorizing the issuance of, the Bonds. "Rule" shall mean Rule 15c2- 12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time or interpreted by the Securities and Exchange Commission. "State" shall mean the State of Minnesota. "State Depository" shall mean any public or private repository or entity designated by the State as a state depository for the purpose of the Rule. As of the date of this Disclosure Undertaking, there is no State Depository in Minnesota. SECTION 3. Provision of Annual Reports. A. Beginning in connection with the Fiscal Year ending on December 31, 2001, the Issuer shall, or shall cause the Dissemination Agent to, as soon as available, but in any event not later than December 31, 2002, 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 Undertakino . 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 Reports. The Issuer's Annual Report shall contain or incorporate by reference the financial information and operating data pertaining to the Issuer listed below as of the end of the preceding Fiscal Year. The Annual Report may be submitted to each Repository as a single document or as separate documents comprising a package, and may cross - reference other information as provided in this Disclosure Undertaking. 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 P YP P CITY PROPERTY VALUES; CITY INDEBTEDNESS; and CITY TAX RATES, LEVIES AND COLLECTIONS; 11 -2 B. Audited Financial Statements of the Issuer. The Audited Financial Statements of the Issuer may be submitted to each Repository separately from the balance of the Annual Report. In the event Audited Financial Statements of the Issuer are not available on or before the date for filing the Annual Report with the appropriate Repositories as set forth in Section 3.A. above, unaudited financial statements shall be provided as part of the Annual Report. The accounting principles pursuant to which the financial statements will be prepared will be pursuant to generally accepted accounting principles promulgated by the Financial Accounting Standards Board, as such principles are modified by the governmental accounting standards promulgated by the Government Accounting Standards Board, as in effect from time to time. If Audited Financial Statements are not provided because they are not available on or before the date for filing the Annual Report, the Issuer shall promptly provide them to the Repositories when available. SECTION 5. Reporting of Significant 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 tax opinions or events affecting the tax - exempt status of the security; (7) modifications to rights of security holders; (8) optional or unscheduled redemption of any Bonds; (9) defeasances; (10) release, substitution or sale of property securing repayment of the Bonds; and (11) rating changes. B. Whenever an event listed in Section 5.A. above has occurred, the Issuer shall as soon as possible determine if such event would constitute material information for Owners of Bonds. If knowledge of the Occurrence would be material, the Issuer shall promptly file a notice of such Occurrence with each National Repository or the MSRB and with the State Depository, if any. 11 -3 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. Termination of Reporting Obligation. The Issuer's obligations under this Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. SECTION 7. Dissemination Agent. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Undertaking, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. 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 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. 11 -4 SECTION 12. Reserved Riahts. The Issuer reserves the right to discontinue providing any information required under the Rule if a final determination should be made by a court of competent jurisdiction that the Rule is invalid or otherwise unlawful or, subject to the provisions of Section 8 hereof, to modify the undertaking under this Disclosure Undertaking if the Issuer determines that such modification is required by the Rule or by a court of competent jurisdiction. Date: .2001 CITY OF BROOKLYN CENTER By Its By Its 11 -5 EXHIBIT A Bloomberg Municipal Repository 100 Business Park Drive Skillman, NJ 08558 Phone: 609 -279 -3225 Fax: 609 - 279 -5962 Email: Munis @BloomberQ.com DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 Phone: 201- 346 -0701 Fax: 201 - 947 -0107 Email: nrmsir @dpcdata.com FT Interactive Data Attn: NRMSIR 100 Williams Street New York, NY 10038 Phone: 212 -771 -6899 Fax: 212 - 771 -7390 Email: NRMSIR@interactive.com Standard & Poor's J.J. Kenny Repository 55 Water Street 45th Floor New York, NY 10041 Phone: 212- 438 -4595 Fax: 212 -438 -3975 Email: NRMSIR repository @sandt).com I 11 -6 APPENDIX III SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND MINNESOTA REAL PROPERTY VALUATION (effective through payable 2001) Following is a summary of certain statutory provisions effective through 2000 relative to tax levy procedures, tax payment and credit procedures, and the mechanics of real property valuation. The summary does not purport to be inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the complete text of applicable statutes, rules and regulations of the State of Minnesota. Property Valuations (Chapter 273, Minnesota Statutes) Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by statute, be appraised at least once every four 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. Effective through assessment year 2001, the amount of increase in market value for all property classified as agricultural homestead or non - homestead, residential homestead or non - homestead, or non - commercial seasonal recreational residential, which is entered by the assessor in the current assessment year, may not exceed the greater of (i) 8.5% of the preceding year's market value or (ii) 15% of the difference between 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 actual selling price. Net Tax Caoacitv. The Net Tax Capacity is the value upon which net taxes are levied, extended and collected. The Net Tax Capacity is computed by applying 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. Property Tax Payments and Delinquencies (Chapters 275, 276, 277, 279 -282 and 549, Minnesota Statutes) Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the various counties within the State. Each taxing jurisdiction is required to certify the annual tax levy to the county auditor within five (5) working days after December 20 of the year preceding the collection year. A listing of property taxes due is prepared by the county auditor and turned over to the county treasurer on or before the first business day in March. III -1 The county treasurer is responsible for collecting all property taxes within the county. Real estate and personal property tax statements are mailed out by March 31. One -half (1/2) of the taxes on real property is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid by their due date are assessed a penalty which, depending on the type of property, increases from 2% to 4% on the day after the due date. In the case of the first installment of real property taxes due May 15, the penalty increases to 4% or 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through October 1 of the collection year for unpaid real property taxes. In the case of the second installment of real property taxes due October 15, the penalty increases to 6% or 8% on November 1 and increases again to 8% or 12% on December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the unpaid tax. However, personal property owned by a tax - exempt entity, but which 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 delinquency and associated penalties. The amount of the judgment is subject to a variable interest determined annually by the Department of Revenue, and equal to the adjusted prime rate charged by banks, but in no event is the rate less than 10% or more than 14 %. Property owners subject to a tax lien judgment generally have five years (5) in the case of all property located outside of cities or in the case of residential homestead, agricultural homestead and seasonal residential recreational property located within cities or three (3) years with respect to other types of property to redeem the property. After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof, then sells those properties not claimed for a public purpose at auction. The net proceeds of the sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any remaining balance in most cases being divided on the following basis: county - 40 %; town or city - 20 %; and school district - 40 %. Property Tax Credits (Chapter 273, Minnesota Statutes) In addition to adjusting the taxable value for various property types, primary elements of Minnesota's property tax relief system are: property tax levy reduction aids; the circuit breaker credit, which relates property taxes to income and provides relief on a sliding income scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid, equalization aid, homestead and agricultural credit aid (HACA) and disparity reduction aid. Levy Limitations for Counties and Cities (M.S. 275.70 to 275.74) (Laws 1999, Chapter 243, Article 6) Levy limitations are in effect for taxes levied in 1999 for all counties and cities with populations exceeding 2,500. Levy increases for cities are limited to its adjusted levy limit base from 1999 plus any increase due to growth in population. Counties are limited in their levy increases to the difference between their adjusted levy limit from 1999 plus any increase due to growth in population and one -half of the county's share of the net cost to the state for assumption of district court costs. The 2000 Legislature allowed the levy limit law to sunset for taxes payable in 2001. III -2 Certain property tax levies are authorized outside of the new overall levy limitation ( "special levies "). Special levies include debt service levies for bonded indebtedness, excluding installment payments on conditional sales contracts, debt service on state -aid road bonds, payments on contracts for deed, any levies to pay debt service on 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. 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 debt" 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 which are applicable within the current fiscal year to the payment of any debt and the aggregate of the principal of the following: 1. Obligations issued for improvements which 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. i 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. Levies for General Obligation Debt (Sections 475.61 and 475.74, Minnesota Statutes) Any municipality which 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. III -3 Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) "Fiscal Disparities Law" The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as "Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the increase in commercial - industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis/St. Paul seven -count metropolitan p Y p 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. Iron Range Fiscal Disparities In 1996 Minnesota Legislature established a commerciakindustrial tax base sharing program for the Iron Range that is modeled after the Twin Cities metropolitan area program commonly known as "fiscal disparities." Under the Iron Range Fiscal Disparities ( "IRFD ") program, 40% of the growth in each municipality's commercial - industrial tax base after 1995 is contributed to an area wide pool. The tax base pool is distributed back to municipalities on the basis of property wealth per capita; i.e., municipalities with lower property wealth receive greater distributions. For the purposes of the IRFD program, commercial - industrial property includes public utility property, but does not include commercial, seasonal, recreational property. All local taxing jurisdictions in the area, including counties, cities, towns (including unorganized towns), school districts, and special taxing districts, participate in the [RFD program. The [RFD program is identical to the Twin Cities metropolitan area program except for the provisions summarized below: 1. The geographical area involved is the taconite tax relief area. This includes all of Cook County and Lake County, most of Itasca County and St. Louis County (the City of Duluth and surrounding area is not included), portions of Aitkin County and Crow Wing County, and a very small portion of Koochiching County. 2. The base year is 1995, so that 40% of the growth in commercial - industrial tax base after 1995 will be shared. The first tax year to be affected was 1997/98. 3. Municipalities are not required to share commercial - industrial growth in tax increment financing (TIF) districts created before May 1, 1996. 4. Municipalities that consciously exclude commercial - industrial development are excluded from participation. This will be determined by a joint effort of the Department of Revenue (MnDOR) and the Iron Range Resources and Rehabilitation Board (IRRRB). In September 2000, a lower court declared the Iron Range Fiscal Disparities Act unconstitutional. In April 2001, this ruling was overturned by the Minnesota Court of Appeals. In July of 2001, the Minnesota Supreme Court agreed to review the Act. What the outcome may be or what effect, if any, these court proceedings may have, can not be determined at this time. III -4 STATUTORY FORMULAE CONVERSION OF ESTIMATED MARKET VALUE (EMV) TO NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity General Classifications Levv Year 1996 Levv Year 1997 Levv Year 1998 Lew Year 1999 Levv Year 2000 Residential Homestead First $72,000 of EMV at 1.00% First $75,000 of EMV at 1.00% First $75,000 of EMV at 1.00% First $76,000 of EMV at 1.00% First $76,000 of EMV at 1.00% EVM in excess of $72,000 EMV in excess of $75,000 EMV in excess of $75,000 EMV in excess of $76,000 EMV in excess of $76,000 at 2.00% at 1.85% at 1.70% at 1.65% at 1.65% Residential Non- Homestead 3.40 %; except certain cities of 2.90 %; except certain cities of 2.50 %; except certain cities of 2.40 %; except certain cities of 2.40 %; except certain cities of 4 or more units 5,000 population or less 5,000 population or less 5,000 population or less 5,000 population or less 5,000 population or less at 2.30% at 2.30% at 2.15% at 2.15% at 2.15% Agricultural Homestead First $72,000 EMV of house, First $75,000 EMV of house, First $75,000 EMV of house, First $76,000 EMV of house, First $76,000 EMV of house, garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00% EMV in excess of $72,000 of EMV in excess of $75,000 of EMV in excess of $75,000 of EMV in excess of $76,000 of EMV in excess of $76,000 of house, garage and 1 acre house, garage and 1 acre house, garage and 1 acre house, garage and 1 acre house, garage and 1 acre at 2.00% at 1.85% at 1.70% at 1.65% at 1.65% Remaining Property: Remaining Property: Remaining Property: Remaining Property: Remaining Property: First $115,000 of EMV on First $115,000 of EMV on first First $115,000 of EMV on First $115,000 of EMV at 0.35% First $115,000 of EMV at 0.35% first 320 acres at 0.45% 320 acres at 0.40% first 320 acres at 0.35% EMV in excess of $115,000 and EMV in excess of $115,000 and EMV in excess of $115,000 on EMV in excess of $115,000 on EMV in excess of $115,000 on less than $600,000 less than $600,000 first 320 acres at 1.00% first 320 acres at 0.90% first 320 acres at 0.80% at 0.80% at 0.80% EMV in excess of $115,000 EMV in excess of $115,000 EMV in excess of $115,000 EMV in excess of $600,000 EMV in excess of $600,000 over 320 acres at 1.50% over 320 acres at 1.40% over 320 acres at 1.25% at 1.20% at 1.20% Agricultural Non - Homestead EMV of house, garage and First $75,000 of EMV of house, First $75,000 of EMV of house, First $76,000 of EMV of house, First $76,000 of EMV of house, 1 acre at 2.30% garage and 1 acre at 1.90% garage and 1 acre at 1.25% garage and 1 acre at 1.20% garage and 1 acre at 1.20% EMV of land and other buildings EMV in excess of $75,000 of EMV in excess of $75,000 of EMV in excess of $76,000 of EMV in excess of $76,000 of at 1.50% house, garage and 1 acre house, garage and 1 acre house, garage and 1 acre house, garage and 1 acre at 2.10% at 1.70% at 1.65% at 1.65% EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings at 1.40% at 1.25% at 1.20% at 1.20% Commercial- Industrial First $100,000 of EMV at 3.00% First $150,000 of EMV at 2.70% First $150,000 of EMV at 2.45% First $150,000 of EMV at 2.40% First $150,000 of EMV at 2.40% EMV in excess of $100,000 EMV in excess of $150,000 EMV in excess of $150,000 EMV in excess of $150,000 EMV in excess of $150,000 at 4.60% at 4.00% at 3.50% at 3.40% at 3.40% Seasonal /Recreational Non - Commercial Non - Commercial Non- Commercial Non - Commercial Non - Commercial Residential First $72,000 of EMV First $75,000 of EMV First $75,000 of EMV First $76,000 of EMV First $76,000 of EMV at 1.75% at 1.40% at 1.25% at 1.20% at 1.20% EMV in excess of $72,000 EMV in excess of $75,000 EMV in excess of $75,000 EMV in excess of $76,000 EMV in excess of $76,000 at 2.50% at 2.50% at 2.20% at 1.65% at 1.65% Commercial - 2.30% Commercial - 2.10% Commercial — 1.80% Commercial — 1.60% Commercial — 1.60% Homestead Resorts — 1.00% Homestead Resorts — 1.00% Vacant Land N/A N/A N/A N/A N/A (All vacant land is reclassified to (All vacant land is reclassified to (All vacant land is reclassified to (All vacant land is reclassified to (All vacant land is reclassified to highest and best use highest and best use highest and best use highest and best use highest and best use pursuant to local zoning pursuant to local zoning pursuant to local zoning pursuant to local zoning pursuant to local zoning ordinance ordinance ordinance ordinance ordinance 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 ro ert tax le and certain transit costs; increased the a ppropriation for Local p P Y levy 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. The assumption by the State of Minnesota of the general education property tax levy and transit costs and the compression of the class rates are expected to have an adverse impact on tax increment revenues. 2001 Class Rate Changes Local Tax Local Tax Payable Payable Prooertv TVDe 2001 2002 Residential Homestead: Up to $76,000 1.000% 1.000% $76,000 - $500,000 1.650% 1.000% Over $500,000 1.650% 1.250% Residential Non - homestead Single Unit: Up to $76,000 1.200% 1.000% $76,000 - $500,000 1.650% 1.000% Over $500,000 1.650% 1.250% 2 -3 unit and undeveloped land 1.650% 1.500 %' Market Rate Apartments: Regular 2.400% 1.800 % Small City 2.150% 1.800 % Low -In ° ° 3 Low-income 1.000 /° 0.900 /° Commercial /Industrial /Public Utility: Up to $150,000 2.400% 1.500% Over $150,000 3.400% 2.000% Electric Generation Machinery 3.400% 2.000% Seasonal Recreational Commercial: Homestead Resorts (1 c) Up to $500,000 1.000% 1.000% Over $500,000 1.000% 1.250% Seasonal Resorts (4c) Up to $500,000 1.650% 1.000% Over $500,000 1.650% 1.250% Seasonal Recreational Residential: Up to $76,000 1.200% 1.000 % $76,000 - $500,000 1.650% 1.000 % Over $500,000 1.650% 1.250 % Disabled Homestead 0.450% 0.450% Agricultural Land & Buildings: Homestead: Up to $115,000 0.350% 0.550 % $115,000 - $600,000 0.800% 0.550 % Over $600,000 1.200% 1.000 % Non - homestead 1.200% 1.000 % ' Rate reduced to 1.25% in pay 2003 and thereafter 2 Rate reduced to 1.5% in pay 2003 and 1.25% in pay 2004 and thereafter 3 Rate reduced to 1 % in pay 2003, classification abolished thereafter 4 Exempt from referendum market value tax III -6 f APPENDIX IV ANNUAL FINANCIAL STATEMENTS The City is audited annually by an independent certified public accounting firm. Data on the following pages has been extracted from the City's financial audited statements for years ending December 31, 2000, 1999, and 1998. Governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting. Proprietary funds are accounted for using the accrual basis of accounting. The reader should be aware that the complete audited financial statements may contain additional data relating to the information presented here, which may interpret, explain or modify it. The City's comprehensive annual financial reports for the years ending 1983 through 1999 were awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded the Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, 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. f IV -1 City of Brooklyn Center All Fund Types and Account Groups COMBINED BALANCE SHEET December 31, 2000 Totals Governmental Fund Type Propnetary Fund Types Account Groups (Memorandum Only) General General Special Debt Capital Infernal Fixed Long -Term December 31, General Revenue Service Projects Enterprise Service Assets Debt 2000 1999 ASSETS AND OTHER DEBITS Assets' Cash and cash equivalents (Notes 1F, 2) 51,887,383 5764,137 $3,480,432 51,492.707 5824,809 $1,107,681 $9,557,149 $9,325,126 Investments (Notes 1F, 2) 6,811,176 2.769,692 1,259,561 5,410,467 2,970,031 4,014,899 23,235,826 27,724,030 Receivables: Accounts 78.883 12,334 1,696 1.365,252 8,014 1,466,179 1,497,634 Delinquent taxes (Note 1J) 59.111 3,090 62,201 165,926 Special assessments 9,188 3,575,606 269,941 193,225 4,047,960 4,130,535 Due from other funds (Note 9) 139,293 84,636 223,929 562,236 Due from other governments 105,902 447,322 892,906 163,991 1,610,121 521,140 Inventories and supplies (Note 1G) 397,281 11,273 408.554 453,914 Prepaid expenses 122 818 122,818 125,143 Advances to other funds (Note 9) 105,074 1,593,069 1,698,143 1,774,486 Fixed assets (net of accum depr. where applicable) (Notes 1C, 3) 46,893,456 2,988,961 $25,324,975 75,207,392 70,964,202 Other Debits Amount available in Debt Service Funds $4,736,609 4,736,609 5,666,641 Amount to be provided for General Long -Term Debt 19,304,211 19,304,211 21,625,834 Total Assets and Other Debits 59,056,717 $4,135,868 $8,315,599 59,660,786 S53.015,499 $8,130.828 525,324,975 $24,040,820 $141,681,092 $144,536,847 i t LIABILITIES POLITY AND OTHER CREDITS ° Liabilities: tV Accounts payable 5313,966 $483,213 $3,384 5373, 191 51,155,592 516,124 $2.345,470 $2,174.838 Contracts payable 17,801 63,302 81,103 240.491 Due to other funds (Note 9) 139,293 84,636 223,929 562,236 Accrued salaries and wages 372,090 59,505 9,750 441,345 450,020 Accrued vacation & sick pay (Note 1H) 641,486 17,704 101,462 29,515 790,167 765,075 Accrued health insurance 1,423,243 1,423,243 1,369,891 Accrued interest payable 22,795 22,795 26,467 Advances from other funds (Note 9) 698,143 1,000,000 1,698,143 1,774,486 Deferred revenue (Note 1J) 277.132 3,090 3.575,606 368,432 4,224,260 4,740,692 General obligation bonds payable (Note 6) $17,900,000 17,900,000 21,335.000 Other long -term liabilities (Note 6) 56,302 20,820 77,122 206,381 Special assessment bands with governmental commitment (Note 6) 6,120,000 6,120,000 5,920,000 Revenue bonds payable (Note 6) 1,050,000 1,050,000 1,230,000 Total Liabilities 1,604,674 1,341,443 3,578,990 759,424 3,593,594 1,478,632 24,040,820 36,397,577 40,795,577 Equity and Other Credits. Contributed capital (Note 4) 22,618.597 3,004,226 25,622,823 26,108,306 investment in general fixed assets 525,324,975 25,324,975 23,361,414 Retained earnings: (Notes 8 & 10) Reserved 433,176 433,176 409,364 Unreserved 26,370,132 3,647,970 30,018,102 27,631,666 Fund Balances: (Notes 8 & 10) Reserved 105,074 977,619 4,736,609 1,593,069 7,412,371 8,418,746 Unreserved: Designated 6,097,387 6,097,387 5,937.168 1, 249, 582 1, 816,806 7, 308, 293 10, 374,681 11, 874,606 Undesignated -- - ----- - - - - - Total Equity and Other Credits - 7 ,452,043 2,794,425 4,736,609 8,901,36 -_ 49 ,421.905 6,652,196 25, 3_2 4,9 75 _ 105,283,515 103,741,270 Total Liabilities, Equity and Other Credits $9,056,717 54.135,868 58,315,599 _ $9,660,786_ $53,015,499 58,130.828 $25,324,975 _ S24,04D,820 $141,681,092 $144,536,847 City of Brooklyn Center All Fund Types and Account Groups COMBINED BALANCE SHEET December 31, 1999 Totals Governmental Fund Types Proprietary Fund Types Account Groups (Memorandum Only) General General Special Debt Capital Internal Fixed Long -Term December 31, ASSETS AND OTHER DEBITS_ General Revenue Service Projects Enterprise Service Assets Debt 1999 1998 Assets: Cash and cash equivalents (Note 2) $1,218,275 $497,770 $4,544,919 $1,407,861 $910,943 $745,358 $9,325,126 $11,134,244 Investments (Notes 1F, 2) 7,117,968 2,902,799 1,123,361 8,210,074 4,023,202 4,346,626 27,724,030 29,819,514 Receivables: Accounts 66,188 12,188 2,062 1,395,703 21,493 1,497,634 1,365,295 Delinquent taxes (Note 1J) 158,445 7,481 165,926 146,907 Special assessments 8,554 3,471,184 480,544 170,253 4,130,535 3,256,003 Due from other funds (Note 9) 220,122 86,219 255,895 562,236 556,573 Due from other governments 140,859 1,991 364,251 14,039 521,140 467,473 Inventories and supplies (Note 1G) 441,342 12,572 453,914 362,256 Prepaid expenses 125,143 125,143 126,079 Advances to other funds (Note 9) 105,074 1,669,412 1,774,486 1,854,456 Fixed assets (net of accum depr. where applicable) (Notes 1 C, 3) 44,575,979 3,026,809 $23,361,414 70,964,202 60,372,176 Other Debits: Amount available in Debt Service Funds Amount to be provided for General Long -Term Debt $5,666,641 5,666,641 5,113, 659 21,625,834 21,625,834 22,695,472 Total Assets and Other Debits $9,035,485 $3,508,448 $9,139,464 $12,390,099 $51,656,604 $8,152,858 $23,361,414 $27,292,475 $144,536,847 $137,270,109 .� LIABILITIES. EQUITY AND OTHER CREDITS (,J Liabilities: Accounts payable $300,707 $59,436 $1,639 $830,468 $953,402 $29,186 $2,174,838 $1,681,895 Contracts payable 155,334 85,157 240,491 307,352 Due to other funds (Note 9) 17,236 545,000 562,236 385,000 Accrued salaries and wages 374,450 6,584 5,508 54,497 8,981 450,020 438,361 Accrued vacation & sick pay (Note 1 H) 634,389 18,390 83,774 28,522 765,075 730,362 Accrued health insurance 1,369,891 1,369,891 1,229,333 Accrued interest payable 26,467 26,467 29,831 Advances from other funds (Note 9) 698,143 1,076,343 1,774,486 2,026,028 Deferred revenue (Note 1J) 417,232 7,481 3,471,184 844,795 4,740,692 3,521,604 General obligation bonds payable (Note 6) $21,335,000 21,335,000 23,015,000 Other long -term liabilities (Note 6) 168,906 37,475 206,381 279,339 Special assessment bonds with governmental commitment (Note 6) 5,920,000 5,920,000 4,740,000 Revenue bonds payable (Note 6) 1,230,000 1,230,000 1,400,000 Total Liabilities 1,726,778 807,270 3,472,823 1,836,105 4,223,546 1,436,580 27,292,475 40,795,577 39,784,105 Equity and Other Credits: Contributed capital (Note 4) 22,933,780 3,174,526 26,108,306 25,258,665 Investment in general fixed assets $23,361,414 23,361,414 17,043,726 Retained earnings: (Notes 8 & 10) Reserved 409,364 409,364 392,874 Unreserved 24,089,914 3,541,752 27,631,666 24,472,065 Fund Balances: (Notes 8 & 10) Reserved 105,074 977,619 5,666,641 1,669,412 8,418,746 15,387,336 Unreserved: Designated 5,937,168 5,937,166 5,726,226 Undesignated 1,266,465 1,723,559 8,884,582 11,874,606 9,205,112 Total Equity and Other Credits 7,308,707 2,701,178 5,666,641 10,553,994 47,433,058 6,716,278 23,361,414 103,741,270 97,486,004 Total Liabilities, Equity and Other Credits $9,035,485 $3,508,448 $9,139,464 $12,390,099 $51,656,604 $8,152,858 $23,361,414 $27,292,475 $144,536,847 $137,270,109 City of Brooklyn Center All Fund Types and Account Groups COMBINED BALANCE SHEET December 31, 1998 Totals Governmental Fund Types Proprietary Fund Types Account Groups (Memorandum Only) Genera! General Special Debt Capital Internal Fixed Long -Term December 31, General Revenue Service Projects Enterprise Service Assets Debt 1998 1997 ASSETS AND OTHER DEBITS Assets: Cash and cash equivalents (Note 2) S1,579,370 $657,742 $4,254,687 $2,557,518 $1,113,731 $971,196 $11,134,244 $13,191,766 investments (Note 2) 6,868,997 2,871,342 834,584 11,164,714 3,840,168 4,239,709 29,819,514 27,104,739 Receivables: Accounts 84,320 32,467 3,490 1,238,221 6,797 1,365,295 1,236,830 Delinquent taxes (Note 1J) 140,548 6,359 146,907 188,564 Special assessments 6,887 2,481,781 612,019 155,316 3,256,003 2,566,414 Due from other funds (Note 9) 120,238 214,891 26,013 195,431 556,573 1,100,577 Due from other governments 37,937 174,866 150,569 104,101 467,473 455,051 inventories and supplies (Note 1G) 357,673 4,585 362,258 346,471 Prepaid expenses 126,079 126,079 142,039 Advances to other funds (Note 9) 105,074 1,749,382 1,854,456 1,932,527 Fixed assets (net of accum depr. where applicable) (Note 3) 40,581,994 2,746,456 $17,043,726 60,372,176 53,313,841 Other debits: Amount available in Debt Service Funds $5,113,659 5,113,659 2,237,549 Amount to be provided for General Long -Term Debt 22,695,472 22,695,472 24,132,451 Total Assets and Other Debits $8,943,371 $3,957,667 $7,597,065 $16,433,123 $47,517,283 $7,968,743 S17,043,726 $27,809,131 $137,270,109 $127,948,819 LIABILITIES, EQUITY AND OTHER CREDITS Liabilities: .P Accounts payable $397,316 $102,542 $1,625 $517,529 $582,662 $80,221 $1,681,895 $731,676 Contracts payable 248,016 59,336 307,352 451,077 Due to other funds (Note 9) 385,000 385,000 1,100,577 Accrued salaries and wages 321,940 4,849 3,115 100,941 7,515 438,361 291,929 Accrued vacation & sick pay (Note 1 H) 602,396 21,904 77,346 28,716 730,362 718,034 Accrued health insurance 1,229,333 1,229,333 1,218,229 Accrued interest payable 29,831 29,831 32,994 Advances from other funds (Note 9) 869,716 1,156,312 2,026,028 1,932,527 Deferred revenue (Note 1J) 283,719 6,359 2,481,781 749,745 3,521,604 3,703,191 General obligation bonds payable (Note 6) $23,015,000 23,015,000 22,450,000 Other long -term liabilities (Note 6) 225,208 54,131 279,339 Special assessment bonds with governmental commitment (Note 6) 4,740,000 4,740,000 3,920,000 Revenue bonds payable (Note 6) 1,400,000 1,400,000 1,565,000 Total Liabilities 1,605,371 1,005,370 2,483,406 1,518,405 4,016,636 1,345,786 27,809,131 39,784,105 38,115,234 Equity and Other Credits: Contributed capital (Note 4) 21,938,312 3,320,353 25,258,665 24,317,833 Investment in general fixed assets $17,043,726 17,043,726 14,495,672 Retained earnings: (Notes 8 & 10) Reserved 392,874 392,874 571,137 Unreserved 21,169,461 3,302,604 24,472,065 21,204,913 Fund Balances: (Notes 8 & 10) Reserved 105,074 2,481,353 5,113,659 7,687,250 15,387,336 14,682,681 Unreserved: Designated 5,726,226 5,726,226 5,516,204 Undesignated 1,506,700 470,944 7,227,468 9,205,112 9,045,145 Total Equity and Other Credits 7,338,000 2,952,297 5,113,659 14,914,718 43,500,647 6,622,957 17,043,726 6 _ 9 7,486,004 89,833,585 Total Liabilities, Equity and Other Credits $8,943,371 S3,957,667 $7,597,065 $16,433,123 $47,517,283 $7,968,743 $17,043,726 $27,809,131 $137,270,109 $127,948,819 City of Brooklyn Center All Governmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 2000 Totals Special Debt Capital (Memorandum Only) Revenues General Revenue Service Projects 2000 1999 Taxes and special assessments $8,745,172 $3,556,588 $994,839 $289,596 $13,586,195 $12,361,125 Licenses and permits 532,549 632,549 763,96660 Intergovernmental 4,076,169 2,239,000 291,245 1,293,108 7,899,522 8,602,166 Charces for services 779,060 779,050 739,054 Court fines '80,676 180,676 205,460 Investment earnings 378,481 252,888 141,277 516,234 1,288,880 1,187,494 Change in fair value of investments (153,454) (113,679) (49,494) (174,024) (490,651) (577,615) Miscellaneous 9,713 105,299 10,000 125,012 108,050 Total Revenues 14,648,366 5,040,096 1,377,867 1.934,914 24,001,243 23,449,694 Excenditures Current: General government 2,421,762 7,434 2,429,196 2,260,415 Public safety 5,437,360 15,783 5,453,143 5,354,413 Public works 2,100,865 2,100,865 1,904,205 Community services 95,148 95,148 83,295 Parks and recreation 2,216,098 128,670 2,344,768 2,233,465 Economic development 397,507 2.365,521 2,763,028 2,664,904 Non departmental 419,789 419.769 343,925 Administrative Services Reimbursement (795,737) (795,737) (670,390) Capital outlay 1,703,932 5,571,743 7,275,675 13,838,702 Debt service: Principal retirement 3,970,000 3,970,000 2,085,000 Interest and fiscal charges 1.295.938 1,295,938 1,387,544 Total Expenditures 12,292,792 4.221,340 5,265,938 5,571,743 27,351,813 31,485,478 Excess or Deficiency( -) of Revenues Over Expenditures 2.355,574 1.818,756 ;3,888,C71) (3,636.829) (3,350,570) (8,035,784) Cther Pinencina Uses( -1 or So11rcPG Proceeds from sale of bonds 735,000 735,000 1,585,000 Sale of fixed assets 194,491 194,491 2,411,987 Operating transfers in 401,884 4,508,039 569,197 5,479,120 3,655,433 Cperating transfers out (1,532,238) (2,321,884) (1,550.000) (5,404.122) (3.704,790) Total Other Financing Uses( -) or Sources (1,532,238) (1,725,509) 2,958,039 1,304,197 1,004,489 3,947,630 ` Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 823,336 93.247 (930,032) (2,332,632) (2,346,081) (4,088,154) Fund Balances January 1 7,308,707 2,701,178 5.666,641 10,553,994 26,230,520 30.318,674 Equity Transfers (Cut) in (680.000) 680,000 Fund Balances December 31 $7,452,043 52,794,425 54,736,609 S8,901,362 $23,884.439 $25,230,520 IV -5 City of Brooklyn Center All Governmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1999 Totals Special Debt Capital (Memorandum Only) Revenues General Revenue Service Projects 1999 1998 Taxes and special assessments $8,219,491 $3,233,790 $690,538 $217,306 $12,361,125 $11,202,457 Licenses and permits 763,960 763,960 549,067 Intergovernmental 3,911,480 1,663,648 308,310 2,718,728 8,602,166 4,936,343 Charges for services 739,054 739,054 771,614 Court fines 205,460 205,460 193,688 Investment earnings 346,382 200,873 137,511 502,728 1,187,494 1,586,399 ` Change in fair value of investments (158,708) (97,456) (32,598) (288,853) (577,615) 146,180 Sale of property 2,411,987 2,411,987 Miscellaneous 6,679 140,367 21,004 168,050 439,013 Total Revenues 14,033,798 7,553,209 1,103,761 3,170,913 25,861,681 19,824,761 Expenditures Current: General government 2,257,957 2,458 2,260,415 2,134,001 Public safety 5,336,622 17,791 5,354,413 5,185,965 Public works 1,904,205 1,904,205 1,955,108 Community services 83,295 63,295 73,066 Parks and recreation 2,132,511 100,954 2,233,465 2,148,201 Economic development 383,927 2,280,977 2,664,904 893,522 Non departmental 343,925 343,925 312,625 Administrative Services Reimbursement (670,390) (670,390) (731,737) Capital outlay 3,522,148 10,316,554 13,838,702 6,453,905 Debt service: Principal retirement 2,085,000 2,085,000 1,285,000 Interest and fiscal charges 1,387,544 1,387,544 1,285,460 Total Expenditures 11,772,052 5,924,328 3,472,544 10,316,554 31,485,478 20,995,117 Excess or Deficiency( -) of Revenues Over Expenditures 2,261,746 1,628,881 (2,368,783) (7,145,641) (5,623,797) (1,170,356) Other Financinq Sources or Uses( -) Proceeds from sale of bonds 1,585,000 1,585,000 2,670,000 Operating transfers in 233,751 2,921,765 499,917 3,655,433 3,646,198 Operating transfers out (1,591,039) (2,113,751) (3,704,790) (4,071,198) Total Other Financing Sources or Uses( -) (1,591,039) (1,880,000) 2,921,765 2,084,917 1,535,643 2,245,000 Excess or Deficiency( -) of Revenues and Other ' Sources Over Expenditures and Other Uses 670,707 (251,119) 552,982 (5,060,724) (4,088,154) 1,074,644 Fund Balances January 1 7,338,000 2,952,297 5,113,659 14,914,718 30,318,674 29,244,030 Equity Transfers In (Out) (700,000) 700,000 Fund Balances December 31 $7,308,707 $2,701,178 $5,666,641 $10,553,994 $26,230,520 $30,318,674 . V -S Cittr of Brooklyn Center All Governmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1998 Totals Special Debt Capital (Memorandum Only) Revenues General Revenue Service Projects 1998 1997 Taxes and special assessments $7,949,744 $2,237,671 $537,698 $477,344 $11,202,457 $9,560,477 Licenses and permits 549,067 549,067 485,232 Intergovernmental 3,875,392 359,393 308,878 392,680 4,936,343 5,122,415 Charges for services 771,614 771,614 757,640 Court fines 193,688 193,688 183,270 Investment earnings 377,826 257,154 53,428 897,991 1,586,399 1,254,163 Change in fair value of investments 35,118 23,773 4,259 83,030 146,180 56,715 Miscellaneous 12,375 275,345 151,293 439,013 143,895 Total Revenues 13,764,824 3,153,336 904,263 2,002.338 19,824,761 17,563,807 Expenditures Current: General government 2,133,829 172 2,134,001 1,992,506 Public safety 5,137,108 48,857 5,185,965 5,107,849 Public works 1,955,108 1,955,108 1,868, 30 Community services 73,066 73,066 79,800 Parks and recreation 2,075,180 73,021 2,148,201 2,212,790 Economic development 313,792 579,730 893,522 1,351,019 Non departmental 312,625 312,625 31 Administrative Services Reimbursement (731,737) (731,737) (661,058) Capital outlay 321,252 6,132,654 6,453,905 4,833,321 Debt service: Principal retirement 1,285,000 1,285,000 1,135,000 Interest and fiscal charges 1,285,460 1,285,460 1,069,278 Total Expenditures 11,268,971 1,023,032 2,570,460 6,132,654 20,995,117 19,300,071 Excess or Deficiency( -) of Revenues Over Expenditures 2,495,853 2,130,304 (1,666,197) (4,130,316) (1,170,356) (1,736,264) Other Financina Sources or Uses( -) Proceeds from sale of bonds 1,588,254 1,081,746 2,670,000 8,975,000 Operating transfers in 294,197 2,882,804 469,197 3,646,198 2,976,285 Operating transfers out (1,427,001) (2,644,197) (4,071,198) (2,876,285) Total Other Financing Sources or Uses( -) (1,427,001) (2,350,000) 4,471,058 1,550,943 2,245,000 9,075,000 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 1,068,852 (219,696) 2,804,861 (2,579,373) 1,074,644 7,338,736 Fund Balances January 1 6,619,148 3,171,993 2,239,528 17,213,361 29,244,030 21,905,294 Equity Transfers In (Out) (350,000) 69,270 280,730 Fund Balances December 31 $7,338,000 $2,952,297 $5,113,659 $14,914,718 $30,318,674 $29,244,030 IV -7 City of Brooklyn Center General and Special Revenue Funds COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 2000 General Fund Special Revenue Funds Actual Over Actual Over Under( -) Under( -) Budget Actual Budget Budget Actual Budget Revenues Taxes and soecial assessments 58,134,653 58,745,172 5610,519 53,582,012 $3,556,588 (525,424) Licenses and permits 512,050 632,549 120,499 Intergovernmental 4,067,577 4,076,169 8,592 2,248,417 2,239,000 (9,417) Charges fcr services 779,750 779,060 (690) Court fines 200,000 180,676 (19,324) Investment earnings 324,000 378,481 54,481 70.000 252,888 182,888 Change in fair value of investments (i 53,454) (153,454) (113,679) (113,679) Miscellaneous 12,000 9,713 (2,28), 87,000 105,299 18,299 I ' Total Revenues 14,030,030 14,648,366 618,336 5,987,429 6,040,096 52,667 I II Expenditures General government 2,402,331 2,421,762 19,431 7,434 7,43 Public safety 5,655,628 5,437,360 (218,268) 100,000 83,224 (16,776) Public works 2,047,036 2,100,865 53,829 Community services 95,030 95,148 118 Parks and recreation 2,314,041 2,216,098 (97,943) 150,000 128,670 (21,330) Economic development 308,750 397,507 88,757 4,153,241 4,002.012 (151,229) Non - departmental 478,843 419,789 (59,054) Admin. Services Reimbursement (749,233) (795,737) (46,504) Total Expenditures 12,552,426 12,292,792 (259,634) 4,403,241 4,221,340 (181,901) Excess or Deficiency( -) of Revenues Over Expenditures 1,477,604 2,355,574 877,970 1,584,188 1,818,756 234,568 Other Financino Uses( -) or Sourc.0 Sale of fixed assets 194,491 194,491 Operating transfers in 405,474 401,884 (3,590) Operating transfers out (1,477,604) (1,532,238) (54,634) (2,325,474) (2,321,884) 3,590 Total Other Financing Uses( -) or Sources (1,477,604) (1,532,238) (54,634) (1,920,000) (1,725,509) 194,491 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 823,336 823,336 (335,812) 93,247 429,059 Fund Balances January 1 7,308,707 7,308,707 2,701,178 2,701,178 Equity Transfer Out (680,000) (680,000) Fund Balances December 31 $7,308,707 $7,452,043 S143,336 $2,365,366 $2,794,425 S429,059 IV -8 City of Brooklyn Center General and Special Revenue Funds COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 1999 General Fund Special Revenue Funds Actual Over Actual Over Under( -) Under( -) Budget Actual Budget Budget Actual Budget Revenues Taxes and special assessments $8,214,083 $8,219,491 $5,408 $2,857,761 $3,233,790 $376,029 Licenses and permits 412,628 763,960 345,332 Intergovernmental 3,894,372 3,911,480 17,108 1,719,113 1,663,648 (55,465) Charges for services 862,206 739,054 (123,152) Court fines 204,000 205,460 1,460 Investment earnings 280,000 346,382 66,382 150,000 200,873 50,873 Change in fair value of investments (158,708) (158,708) (97,456) (97,456) Sale of property 2,420,000 2,411,987 (8,013) Miscellaneous 12,00 6,679 (5,321) 24,000 140,367 116,367 Total Revenues 13,885,289 14,033,798 148,509 7,170,874 7,553,209 382,335 Expenditures General government 2,357,773 2,257,957 (99,816) 2,458 2,458 Public safety 5,433,832 5,336,622 (97,210) 26,987 26,987 Public works 2,016,754 1,904,205 (112,549) Community services 84,910 83,295 (1,615) Parks and recreation 2,232,090 2,132,511 (99,579) 100,954 100,954 Economic development 385,250 383,927 (1,323) 6,328,461 5,793,929 (534,532) Non - departmental 534,653 343,925 (190,728) Admin. Services Reim bursement 737 4 ( 87) (670,390) 67,097 Total Expenditures 12,307,775 11,772,052 (535,723) 6,328,461 5,924,328 (404,133) Excess or Deficiency( -) of Revenues Over Expenditures 1,577,514 2,261,746 684,232 842,413 1,628,881 786,468 Other Financinq Sources or Uses( -) Operating transfers in 1,873,609 233,751 (1,639,858) Operating transfers out (1,591,049) (1,591,039) 10 (3,023,609) (2,113,751) 909,858 Total Other Financing Sources or Uses( -) (1,591,049) (1,591,039) 10 (1,150,000) (1,880,000) (730,000) Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses (13,535) 670,707 684,242 (307,587) (251,119) 56,468 Fund Balances January 1 7,338,000 7,338,000 2,952,297 2,952,297 Equity Transfer In (Out) (700,000) (700,000) Fund Balances December 31 $7,324,465 $7,308,707 ($15,758) $2,644,710 $2,701,178 $56,468 IV -9 Cite of Brooklyn Center General and Special Revenue Funds COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 1998 General Fund Special Revenue Funds Actual Over Actual Over Under( -) Under( -) Budget Actual Budget Budget Actual Budget Revenues Taxes and special assessments $7,733,573 $7,949,744 $216,171 $2,369,913 $2,237,671 ($132,242) Licenses and permits 364,585 549,067 184,482 Intergovernmental 3,848,814 3,875,392 26,578 266,160 359,393 93,233 Charges for services 882,594 771,614 (110,980) Court fines 192,000 193,688 1,688 Investment earnings 300,000 377,826 77,826 150,000 257,154 107,154 Unrealized gain or (loss) 35,118 35,118 23,773 23,773 Miscellaneous 12,000 12,375 375 15,000 275,345 260,345 Total Revenues 13,333,566 13,764,824 431,258 2,801,073 3,153,336 352,263 Expenditures General government 2,234,395 2,133,829 (100,566) 172 172 Public safety 5,316,155 5,137,108 (179,047) 103.490 103,490 Public works 2,023,166 1,955,108 (68,058) Community services 80,104 73,066 (7,038) Parks and recreation 2,166,277 2,075,180 (91,097) 73,021 73.021 Economic development 314,500 313,792 (708) 661,164 846,349 185,185 Non - departmental 525,259 312,625 (212,634) Admin. Services Reimbursement (715,538) (731,737) (16,199) Total Expenditures 11,944,318 11,268,971 (675,347) 661,164 1,023,032 361,868 Excess or Deficiency( -) of Revenues Over Expenditures 1,389,248 2,495,853 1,106,605 2,139,909 2,130,304 (9,605) Other Financing Sources or Uses( -) Operating transfers in 391,743 294,197 (97,546) Operating transfers out (1,378,425) (1,427,001) (48,576) (2,991,743) (2,644,197) 347,546 Total Other Financing Sources or Uses( -) (1,378,425) (1,427,001) (48,576) (2,600,000) (2,350,000) 250,000 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 10,823 1,068,852 1,058,029 (460,091) (219,696) 240,395 Fund Balances January 1 6,619,148 6,619,148 3,171,993 3,171,993 Equity Transfer In (Out) (350,000) (350,000) Fund Balances December 31 $6,629.971 S7,338,000 $708,029 $2,711,902 $2,952,297 $240,395 IV -10 City of Brooklyn Center Enterprise Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2000 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center & Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 2000 1999 O ra in�tc - e_ven_u_e Sales and user fees $3,584,829 $359,511 53,992,737 $210,168 $1,348,221 $2,398,323 $1,074,619 $12,968,408 $12,355,7 Cost of sales 2,734.318 36,677 533,428 3,304,423 3,285,487 Gross Margin 850,511 322,834 3,459,309 210,168 1,346,221 2,398,323 1,074,619 9,663,985 9,070,268 Operatina Expensa 415,887 148,450 1,955,572 314,651 120,051 100,000 3,054,611 2,942,9 Personal services Supplies 20,989 20,196 230,784 138,493 11,128 475 422,065 363,390 Other services 99,258 44,372 481,383 214,770 348,149 1,546,918 51,062 2,785,912 2,861,174 9,538 8,010 30,504 119 8,433 5,962 2,646 65,212 54,980 Insurance Utilities 19,481 13,617 154,643 121,326 23,985 333,052 322,062 Rent 117,659 76,115 193,774 236,172 14,018 13,837 405,284 400,358 213,401 153,206 1,200,104 1,065,311 Depreciation C Total Operating Expenses 696,830 248,482 3,334,285 214,8B9 1,331,410 1,921,445 307,389 8,054,730 7,846,061 -� 153,681 74,352 125,024 (4,721) 16,811 476,878 767,230 1,609,255 1,224,207 Operating Income (Loss) Nor oneratina Exoense,$W or RevpnL,e$ 275,169 298,676 Investment earnings 30,929 6,555 4,556 142,820 90,309 12,798 (3,203) (1,851) (39,259) (36,067) (93,118) (134, Change in fair value of investments (12,738) 39 775 314 313,068 353,157 291,475 Special assessments 1,092,609 Intergovernmental 6,086 10,275 7,454 Other revenue 4,189 Interest and fiscal agent fees (515) (23,84II) (59,144) (83,507) (90,904) (30,989) Loss on sale of fixed assets (30,989) Total Nonoperating Expenses( -) or Revenues (9,124) 3,352 (23,848) 2,705 149,422 54,556 253,924 430.987 1,464,959 Income (Loss) Before Operating Transfers 144,557 77,704 101,176 (2,016) 166,233 531,434 1,021,154 2,040,242 2,68 4 ,166 4,357 Operating Transfers In (75,000) (75,000) Operating Transfers Out (75,000) 77,704 101,176 (2,016) 166.233 531,434 1,021,154 1,965,242 2,618,523 Net Income (Loss) 69,557 Depreciation on contributed assets 338,788 338,788 318,420 that reduces contributed capital Retained Earnings (Deficits) Jan 1 861,865 27,097 (260,633) 99,595 10,553,218 _6,023.355 7.194,781 24,499,278 21,562,335 _ $931_422 $104,801 - S179,331 ` $97,579 $10,719,451 $6,554,789 _ $3,215,935 $26,803,308 $24,499,278 Retained Earnings Dec. 31 r a City of Brooklyn Center Enterprise Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1999 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center & Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1999 1998 Ooeratina Revenues Sales and user fees $3,560,613 $355,534 $3,490,692 $210,764 $1,354,179 $2,384,106 $999,867 $12,355,755 $10,699,781 Cost of sales 2,694,622 31,860 559,005 3,285,487 2,880,024 Gross Margin 865,991 323,674 2,931,687 210,764 1,354,179 2,384,106 999,867 9,070,268 7,819,757 Operating Expenses Personal services 387,260 145,159 1,902,030 291,786 116,939 99,798 2,942,972 2,613,031 Supplies 16,133 25,703 196,100 114,297 11,157 363,390 345,593 Other services 85,923 56,704 539,705 213,297 291,688 1,618,912 54,945 2,861,174 2,642,884 Insurance 8,146 6,877 27,125 85 6,406 4,522 1,819 54,980 53,177 Utilities 25,433 13,320 149,679 109,012 24,618 322,062 315,484 Rent 69,922 166,250 236,172 134,107 Depreciation 39,821 13,847 376,209 356,572 203,019 75,843 1,065,311 911,003 C Total Operating Expenses 632,638 261,610 3,357,098 213,382 1,169,761 1,979,167 232,405 7,846,061 7,015,279 Operating income (Loss) 233,353 62,064 (425,411) (2,618) 184,418 404,939 767,462 1,224,207 804,478 Nonooeratino Revenues or Expenses( -) Investment earnings 18,910 4,270 4,189 148,205 85,103 37,999 298,676 267,953 Change in fair value of investments (7,266) (1,672) (1,918) (72,990) (38,885) (11,820) (134,551) 24,905 Special assessments 22,415 338 268,722 291,475 22,767 Intergovernmental 1,092,809 1,092,809 907,191 Other revenue 6,620 460 374 7,454 56,688 Interest and fiscal agent fees (2,593) (23,233) (65,078) (90,904) (123,502) Total Nonoperating 15,671 2,598 (23,233) 2,271 98,090 46,556 1,323,006 1,464,959 1,156,002 Income (Loss) Before Operating Transfers 249,024 64,662 (448,644) (347) 282,508 451,495 2,090,468 2,689,166 1,960,480 In Out 75 000 4,357 70,643 Operating Transfers ( ) ( ) ( ) 425,000 P 9 Net Income (Loss) 174,024 64,662 (444,287) (347) 282,508 451,495 2,090,468 2,618,523 2,385,480 Depreciation on contributed assets that reduces contributed capital 318,420 318,420 299,430 Retained Earnings (Deficits) Jan. 1 687,841 (37,565) (134,766) 99,942 10,270,710 5,571,860 5,104,313 21,562,335 18,877,425 Retained Eamings (Deficits) Dec. 31 $861,865 $27,097 ($260,633) $99,595 $10,553,218 $6,023,355 $7,194,781 $24,499,278 $21,562,335 City of Brooklyn Center Enterprise Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1998 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center & Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1998 1997 Operatinq Revenues Sales and user fees $3,200,585 $290,654 $2,540,085 $209,007 $1,179,383 $2,289,620 $940,012 $10,649,346 $10,327,518 Cost of sales 2,433,185 36,211 410,628 2,880,024 2,698,882 Gross Margin 767,400 254,443 2,129,457 209,007 1,179,383 2,289,620 940,012 7,769,322 7,628,636 Operatinq Expenses Personal services 396,389 121,482 1,398,512 388,388 206,760 101,500 2,613,031 2,438,518 Supplies 11,699 18,484 159,880 90,293 13,748 1,054 295,158 281,867 Other services 54,522 49,390 412,878 214,575 217,885 1,598,199 95,435 2,642,884 2,737,667 Insurance 9,679 6,280 24,504 116 6,735 4,158 1,705 53,177 60,252 Utilities 24,572 14,141 136,826 116,060 23,885 315,484 313,733 Rent 55,003 79,104 134,107 81,415 Depreciation 40,787 12,697 354,590 255,689 185,732 61,508 911,003 902,717 j Total Operating Expenses 592,651 222,474 2,566,294 214,691 1,075,050 2,032,482 261,202 6,964,844 6,816,169 W Operating Income (Loss) 174,749 31,969 (436,837) (5,684) 104,333 257,138 678,810 804,478 812,467 Nonoveratinq Revenues or Expenses( -) Investment earnings 12,139 2,993 4,295 167,803 80,723 267,953 368,582 Change in fair value of investments 1,128 278 399 15,597 7,503 24,905 18,053 Special assessments 15,156 4,942 2,669 22,767 48,822 Intergovernmental 907,191 907,191 101,920 Other revenue 8,456 41,232 7,000 56,688 15,246 Interest and fiscal agent fees (4,691) (20,005) (98,806 (123,502) (180,841) Total Nonoperating 17,032 3,271 (20,005) 4,694 239,788 93,168 818,054 1,156,002 371,782 Income (Loss) Before Operating Transfers 191,781 35,240 (456,842) (990) 344,121 350,306 1,496,864 1,960,480 1,184,249 Operating Transfers In (Out) (75,000) 500,000 425,000 (100,000) Net Income (LOSS) 116,781 35,240 (456,842) (990) 344,121 350,306 1,996,864 2,385,480 1,084,249 Depreciation on contributed assets that reduces contributed capital 299,430 299,430 348,738 Retained Earnings (Deficits) Jan. 1 571,060 (72,805) 22,646 100,932 9,926,589 5,221,554 3,107,449 18,877,425 17,444,438 Retained Earnings (Deficits) Dec. 31 $687,841 ($37,565) ($134,766) $99,942 $10,270,710 $5,571,860 $5,104,313 $21,562,335 $18,877,425 Memorandum Date: November 20, 2001 To: Michael J McCauley City Manager From: Douglas Sell Director of Fiscal and Support Services RE: 2001 Improvement Project Bond Sale Series 2001A -G.O. Improvement Bonds Attached is a copy of the official statement for the above captioned bond sale. Council authorized the sale of these bonds to provide a financing source for the unpaid portion of special assessments that have been levied but not prepaid. The bond sale amount is projected at $730,000 and provides for all cost of issuance, registration fees and costs incidental to the recording of these bonds. The official statement provides background information about the City; its financial condition and position and details related to the bond issue itself. Mr. Robert Thistle • from Springsted, Inc., will be receiving proposals on Monday, November 26, 2001 and will present the results of the analysis of those proposals to the Council on Monday, November 26 Resolutions necessary to award the sale, based on the results presented by Mr. Thistle, will be provided on Monday evening. These resolutions are standard in nature and provide for the sale, closing date, transfer of funds at closing and other details relating to the sale. Again, Mr. Thistle will be available to respond to any questions or concerns. memMcMaul ey 112001. do c 112601 9e.agd.doc Member introduced the following resolution and moved its ® adoption: RESOLUTION NO. RESOLUTION ACCEPTING OFFER ON THE SALE OF $730,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2001A, 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 $730,000 General Obligation Improvement Bonds, Series 2001A 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 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 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: 1. Acceptance of Offer. The offer of (the "Purchaser "), to purchase $730,000 General Obligation Improvement Bonds, Series 2001A of the City (the "Bonds ", or 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 $ e I RESOLUTION NO. • 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 2001A ", shall be dated December 1, 2001, 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 2003 $85,000 2008 $70,000 2004 80,000 2009 70,000 2005 80,000 2010 65,000 ® 2006 75,000 2011 65,000 2007 75,000 2012 65,000 As may be requested by the Purchaser, one or more Term Bonds may be issued having mandatory sinking fund redemption and final maturity amounts conforming to the foregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). (b) Book Entry Only System. 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 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 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 (the "Registrar ") in the name of CEDE & CO., as the nominee (it or any nominee of the existing or a successor • Depository, the "Nominee "). RESOLUTION NO. (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 shown 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 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 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 Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to or upon the Holder of the Holders of the Bonds as shown on the register, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. (v) Upon delivery by the Depository to the 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 Registrar or City, as the case may be, to the Depository as provided in the Letter of RESOLUTION NO. 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 "). 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. (vii) In connection with any notice or other communication to be provided to the Holders pursuant 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. • (viii) 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. (ix) 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 -Entry Only System. 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. • RESOLUTION NO. • (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 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 as being 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). 3. Purpose. The Bonds shall provide funds to finance the construction of • various improvement projects 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, 2002, calculated on the basis of a 360 -day year of twelve 30 -day months, at the respective rates per amlum set forth opposite the maturity years as follows: Maturity Interest Maturity Interest Year Rate Year Rate 2003 % 2008 % 2004 2009 2005 2010 2006 2011 2007 2012 RESOLUTION NO. • 5. Optional Redemption. All Bonds maturing in the years 2011 and 2012, shall be subject to redemption and prepayment at the option of the City on February 1, 2010, 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 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 1 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 Registrar. , in , Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar "), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this resolution (with respect to interest payment and record date). 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form: RESOLUTION NO. UNITED STATES OF AMERICA STATE OF MINNESOTA HENNEPIN COUNTY CITY OF BROOKLYN CENTER R- $ GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2001A INTEREST MATURITY DATE OF RATE DATE ORIGINAL ISSUE CUSIP % December 1, 2001 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 I and August 1 of each year (each, an "Interest Payment Date "), commencing August 1, 2002, at the rate per annum specified above (calculated on the basis of a 360 -day year of twelve 30 -day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of , in , 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. • ® RESOLUTION NO. 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. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution, laws of the State of Minnesota 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 or statutory 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 City Manager, the corporate seal of the Issuer having been intentionally omitted as permitted by law. Date of Registration Registrable by: Payable at: BOND REGISTRAR'S CITY OF BROOKLYN CENTER, CERTIFICATE OF HENNEPIN COUNTY, AUTHENTICATION MINNESOTA This Bond is one of the Bonds described in the Resolution mentioned /s/ Facsimile within. Mayor /s/ Facsimile Bond Registrar Manager By: Authorized Signature RESOLUTION NO. ON REVERSE OF BOND Redemption. All Bonds of this issue (the "Bonds ") maturing in the years 2011 and 2012, are subject to redemption and prepayment at the option of the Issuer on February 1, 2010, 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 Redemption; Partial Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select 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 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; Purpose; General Obli- ation. This Bond is one of an issue in the total principal amount of $730,000, 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, laws of the State of Minnesota and pursuant to a resolution adopted by the City Council of the Issuer on November 26, 2001 (the "Resolution "), for the purpose of providing money to finance the construction of various improvement projects. This Bond is payable out of the General Obligation Improvement Bonds, Series 2001A Fund of the Issuer. • RESOLUTION NO. • 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 are hereby irrevocably pledged. Denominations; Exchange; Resolution. The Bonds are issuable solely as fully registered bonds in the denominations of $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of ® an authorized denomination or denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided on the reverse side hereof 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. Qualified Tax - Exempt Obligation. 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. • 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 (Cult) (Minor) under the Uniform (State) Transfers to Minors Act Additional dd tional abbreviations may also be used though not in the above list. • 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 full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm ® having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad- 15(a)(2). The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) s 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: Date Authorized Signature Amount Of Holder • s RESOLUTION NO. • 8. Execution; Temporary Bonds. The Bonds shall be printed (or, at the request of the Purchaser, typewritten) shall be executed on behalf of the City by the signatures of its Mayor and Manager and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed (or, at the request of the Purchaser, photocopied) facsimile; and provided further that both of such signatures may be printed (or, at the request of the Purchaser, photocopied) facsimiles and the corporate seal may be omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence of either such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. The City may elect to deliver, in lieu of printed definitive bonds, one or more typewritten temporary bonds in substantially the form set forth above, with such changes as may be necessary to reflect more than one maturity in a single temporary bond. The temporary bonds may be executed with photocopied facsimile signatures of the Mayor and Manager. Such temporary bonds shall, upon the printing of the definitive bonds and the execution thereof, be exchanged therefor and canceled. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication ® on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue, which date is December 1, 2001. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Registration; 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. RESOLUTION NO. At the option of the Holder, Bonds may be exchanged for Bonds of any authorized denomination or denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Bonds are so surrendered for exchange, the City -shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or his, her or its attorney duly authorized in writing. ® The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subject to reasonable regulations of the City contained in J g Y 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. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder ") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth (15th) day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date "). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date ") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special ® Record Date shall be given by the Bond Registrar to the Holders not less than ten (10) days prior to the Special Record Date. RESOLUTION NO. 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. Delivery; Application 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 2001A 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 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 $721,605, 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 let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of special assessments herein levied 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. e RESOLUTION NO. (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 $721,605; (d) all collections of taxes levied for the payment of the Bonds and interest thereon in the event the sums herein 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; (f) all investment earnings on funds held in the Debt Service Account; and (g) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. 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 for 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 such 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 Improvement specifies a different time limit for the letting of construction contracts. • RESOLUTION NO. 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 or 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, and with interest on the declining balance of all such assessments at a rate per annum not greater than the maximum permitted by law and not less than 7.00% per annum: Improvement Levy Collection Designation Amount Years Years Garden City Central Streets /Storm $700,000 2001 -2010 2002 -2011 17. Coverage 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 Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 19. Certificate of Registration. The Clerk is hereby directed to file a certified copy of this resolution 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 e Bonds as the same appear from the books and records under their custody and control or as RESOLUTION NO. • 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 on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, subject to sale and /or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of ® redemption as herein required has been duly provided for, to such earlier redemption date. 22. Negative Covenant as to Use of Proceeds and Improvements. 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 - Exempt 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 tax - exempt bonds (other than private activity bonds) issued by RESOLUTION NO. 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(f)(4)(D) of the Code. 24. Compliance with Reimbursement Bond Regulations. 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 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 e 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. RESOLUTION NO. (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 foregoing 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. Designation of Qualified Tax - Exempt Obligations; 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; • (d) the reasonably anticipated amount of tax - 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 2001 will not exceed $10,000,000; and (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2001 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. 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: RESOLUTION NO. (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 '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. 27. Severability. 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. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. ® RESOLUTION NO. 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. • 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 $730,000 General Obligation Improvement Bonds, Series 2001A of said City. WITNESS m hand this day of , 2001 Y y Clerk • City Council Agenda Item No. 9e MEMORANDUM DATE: November 20, 2001 TO: Michael J. McCauley, City Manager FROM: Diane Spector, Director of Public Works` SUBJECT: Joint Resolution Requesting Concurrent Detachment From Brooklyn Center And Annexation To Robbinsdale Of Certain Property South Of TH 100 The council has previously seen proposed resolutions that would request the State Planning Agency to accomplish the detachments and annexations discussed as part of the TH 100 Segment 4 design. The Robbinsdale City Council has agreed to annex the triangular area south of TH 100 for the Frontage Road, but has not agreed to detach the triangular area north of TH 100, south of Twin Lake Park. Therefore, the resolution before the Council would request just the detachment and annexation of the south area. This item was tabled until November 26 in hopes of obtaining further information regarding the one house in Brooklyn Center that may not be a total take. At this writing, we have been attempting to contact the property owner but haven't yet made contact. Also, Mn/DOT continues to evaluate how much of that property is needed for compensating flood storage and wetland mitigation. We hope to have more information by the November 26 Council meeting. I CITY OF ROBBINSDALE RESOLUTION NO. CITY OF BROOKLYN CENTER RESOLUTION NO. JOINT RESOLUTION REQUESTING CONCURRENT DETACHMENT FROM BROOKLYN CENTER AND ANNEXATION TO ROBBINSDALE OF CERTAIN PROPERTY SOUTH OF TH 100 PURSUANT TO MINN. STAT. § 414.061 WHEREAS, certain real property is legally described as: Beginning at the intersection of the centerline of France Avenue North and the corporate boundary between Robbinsdale and Brooklyn Center, proceeding north and northwest along the centerline of France Avenue North until its intersection with the centerline of TH 100, then proceeding southwesterly along the centerline of TH 100 until its intersection with the corporate boundary between Robbinsdale and Brooklyn Center, then proceeding easterly along the corporate boundary to the point of beginning at the centerline of France Avenue North. WHEREAS, the said Property is approximately 10.5 acres in size and is located within the boundaries of Brooklyn Center; and WHEREAS, said Property is owned by several property owners and is used as residential; and i the Minnesota Department of Transportation acquire all but one of the will ac WHEREAS, p p q parcels comprising said Property for highway purposes, and may acquire the remaining parcel in part or in total; WHEREAS, the detachment and annexation of said Property would simplify municipal boundaries so that property and local infrastructure south of TH 100 would lie within the City of Robbinsdale; and WHEREAS, the resulting simplification of municipal boundaries would reduce confusion among city residents, visitors and providers of services, and would facilitate the efficient provision of public services including planning, zoning, police, fire, emergency medical and utility services. KRC- 201658vl 1 BR291 -217 ® CITY OF ROBBINSDALE RESOLUTION NO. CITY OF BROOKLYN CENTER RESOLUTION NO. NOW, THEREFORE, BE IT RESOLVED: 1. That the City of Robbinsdale and the City of Brooklyn Center jointly request that the Director of the State Planning Agency concurrently detach said Property from the City of Brooklyn Center and annex the same to the City of Robbinsdale as of July 1, 2002. 2. That this joint resolution be submitted to the Director of the State Planning Agency for the purposes set forth herein. CITY OF ROBBINSDALE: Member introduced the foregoing resolution and moved its adoption. The motion for the adoption of the 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. Date Mayor ATTEST: City Clerk KRC- 201658v1 2 BR291 -217 CITY OF ROBBINSDALE RESOLUTION NO. CITY OF BROOKLYN CENTER RESOLUTION NO. CITY OF BROOKLYN CENTER Member introduced the foregoing resolution and moved its adoption. The motion for the adoption of the 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. Date Mayor ATTEST: KRC- 201658vl 3 BR291 -217 City Council Agenda Item No. 9f I � I MEMORANDUM DATE: November 19, 2001 TO: Michael J. McCauley, City Manager FROM: Todd Howard, City Engineer SUBJECT: I -94 Project Update In February, the City Council approved the 1 -94 conceptual plan for the "Third Lane Project," but withheld approval of the pond locations until further study was completed. Drainage design is now essentially complete throughout the 1 -94 Corridor, and Mn/DOT is proposing to construct ponds on parcels owned by the City and by private owners. To accomplish this, Mn/DOT is requesting the City Council to: 1) Authorize for conveyance to Mn/DOT City owned parcels that were previously turned back from Mn/DOT to the City; and 2) Declare a parcel of land adjacent to Central Park non - significant and authorize its conveyance to Mn/DOT. Previously Turned -back Parcels One proposed pond is located south of 1 -94 and north of 66 Avenue between Orchard Park and . Brooklyn Boulevard (see attached map). The size of this pond has been significantly reduced from previous conceptual plans by re- routing storm water runoff to the east, eliminating the need to purchase any homes. The sound wall adjacent to the new pond would be rebuilt to the full 20- foot height. Nearby residents also expressed also concerns about the potential for the pond raising the groundwater table. Mn/DOT has completed its groundwater investigation and has designed the pond so that the water table will not affect surrounding homes. Mn/DOT is also proposing to line the pond as an added precaution. An alternate site for this pond was proposed on the north side of I -94 at the North Memorial property, however a Phase I Environmental Site Assessment was completed and identified that location as having a high likelihood of contamination. The North Memorial site is currently on the MPCA's Voluntary Investigation and Cleanup program list. The long narrow pond will require Mn/DOT to purchase land from adjoining property owners. The additional land needed should be confined to the land that was turned back by Mn/DOT previously as excess right of way. The City owns three of these excess right of way parcels of land that the adjacent property owners did not acquire. Mn/DOT has requested a resolution authorizing the conveyance of this property previously owned by the state. Declaring Parcel Adjacent to Central Park Non - Significant A second pond is proposed on a vacant parcel of land located between 65 Avenue and 1 -94 (see attached map). This land has been used as open space and buffer from the freeway, and it has not been formally or informally attached to Central Park. The City currently mows the land. For the upcoming I -94- project, Mn/DOT would like to use this land for storm water pondmg and wetland s ' f" mitigation, and has Xerxes requested that the city �= ,:; - '� "_ �j "- � :.�'` - :� •.: , . convey back h``` t e land. The City would benefit from the proposed use in that the I- 94/694 u ` quality of highway storm water runoff discharging to Shingle Creek would be ' Parcel in" K greatly improved. In `question 4 m " ,rr.• =... exchange for this, Mn/DOT would construct noise wall between the properties on 65 and 66 and the ponds. As a part of this p s process, the City would have to declare this land "non- significant," or that there are no future.. plans for the land. The Park and Recreation Commission recommended that the F: property be declared non - significant, however, the Commission is interested in retaining an easement that could be used for a possible future trail connecting Central Park with Xerxes Avenue. City Engineer Todd Howard and I have walked the area, and while a trail in the area behind the houses on ` 65 would be possible, it would be extraordinarily A� difficult and expensive to constrict the trail along the north side of the houses on 66 connecting to Xerxes. :.'.:` """.:° ........ro.,. ........... And because of the minimal amount of area to work in,' "" • """ ' the trail would be immediately adjacent to the back yards of the houses on 66 The Replacement Land does not include the area north of the houses on 6 so if we wanted to overcome the e technical and financial `s ��� _ • � ����' � challenges of connecting the trail to Xerxes we would have to g through a separ arate p rocess with Mn/DOT to b b Y Y obtain a trail easement for that segment. f Area behind 66th Avenue houses It is staff's recommendation not to pursue a trail connection between Xerxes and Central Park. Bicycle and pedestrian access from southbound Xerxes coming over the bridge is currently provided on- street on 66 Avenue to Brooklyn Drive, where there is a trail connection into Central Park. Summary Letters have been sent to adjacent homeowners notifying them of Mn/DOT's plans. It is expected that Mn/DOT representatives will attend the City Council meeting and be available for questions. It is recommended that Council approve the attached resolutions authorizing the reconveyance of the various parcels. Within the next several months the I -94 Final Plan will be before the council for final approval. That final action is required before construction can begin. / 1 1 C1 7 1 1 1` '!OJT. 1 O 6pj C p Ill „� rQt ,\ d �"' l�ol \`;+° ,• I P uusic P / US r �_~' _ _ _— l �QI 000 1 � t ,-s -car IOC° *O «, �F ^ ` -- rZ, - ` y ` 1 � C _ st � - n `1 'F'F - ,F /o u•snrrsr sna •� 1 />tsri 1 1 _mss ^ — " — � •s '�;; . ^� 1r • C •` z f ^ __ JUrP. _.�..__... ` O ; .Y _ • \ �_` 'moo. _ _ _ ` ❑ O :ws ..r, -..o0 ,�_, o, I , O • 66 TH AVE NO _ stT ' N ,1►, 1 ' _ O I i I'a r r0 °rr see 0. F I** _ - - ` -- O ° { °° f O �...8t '- +" w 0 'C3 O O° a O Q p O 0 O 0 O �O O s O O 0 O I O O 1 O i O° x T Yl i Q1t I r - ° '� rw �' O e Cp ftft x,u ztiz as + / J f — +mt oa I I d I �olI o 1 ° ° d i ° ° i i f ° {c o xY - :;ui ° / !/ 0 1 t - LI ! 3AW H1Si �..'._. O O 1 b! I° v I i `� t I o 1 p xx ° o ` `--� U0 0 ° • END CONSTRU CT 8 TH9 ION ° � °o 4 STA. 1201 + 41.04 ° �i ° cS o ° =r / jyy 0 t• � -� o - �. - jf _�V'. T T 1,' 66 12 1 -50 31' CON R= 22490' MfB L MAR �. E'9 ! - it . -------------.----- --- -------- - - - - -- ' r _7 5 0' - cu PIEZOMETER P -1— c 8424 C&G —� -- 1-15 �rr p RAMP C F-` I fl ° ° �\ �f� }-+ fl y c ( IEZOMETER P ° p Q m + I fl 0 + 30 r f.. i C © © © M� p xc i © xc O © O? Q ° O BIT CO NC_ CAR © * Y D © ° ". Q a Q� Q ° — r ° ° r� ° GAR fl � ° CAR © p fl GAR GAR _ GAR GAR . Q CAfl BI7 W © O GAR GAR I i n — �_ GAR CAR I GAO I p fl I p cr. L— �~ ° ` GAR p ' l " ° 49 4412 I 4406 4400 ' 4318 GAR 4312 4306 4300 4606 4600 ' 1 F 1 +5 -BR I ' ;5 8fl 155 F�` t -S -F I I 1 ` i 1 -S -F © 1 -5 -F ' 1 LIJ Q� oI I -S -F 1 -5 -F I © W ll_ 'F 1'S -F S-F 1 -S -F b��' 1 -5- m ° POINT t APPROX. GND ELEV. = 864.8 BASEMENT FTG. ELEV. = 857.8 66 TH AVE NO POINT 5 �— APPROX. GND ELEV. = 863 8 BASEMENT FTG. ELEV. = 6. POINT 2 POINT 3 POINT 4 APPROX. GND ELEV. = 864.4 APPROX. GND ELEV. = 865.0 APPROX. GNO ELEV. = 864.4 BASEMENT fTG. ELEV. = 857.4 BASEMENT FTG. ELEV. = 058.0 BASEMENT FTG. ELEV. = 857.4 ® Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AUTHORIZING THE CONVEYANCE OF CITY OWNED PARCELS TO THE MINNESOTA DEPARTMENT OF TRANSPORTATION WHEREAS, the Minnesota Department of Transportation (Mn/DOT) has prepared a preliminary design for storm drainage improvements associated with the upcoming improvements to I -94 known as the "Third Lane Project "; and WHEREAS, Mn/DOT desires to utilize three parcels of land on the south side of I -94 from Orchard Lane Park to Brooklyn Boulevard, three of which are owned by the City of Brooklyn Center, for storm water ponding to accommodate the expansion of I -94; and WHEREAS, Mn/DOT agrees to construct new noise walls between the pond known as "Chuck Pond" and the adjacent properties to the south; and WHEREAS, Mn/DOT has requested that the City of Brooklyn Center convey the three City -owned parcels to Mn/DOT for the purpose of constructing a storm water pond and replacement noise wall. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that 1. The conveyance of said three parcels of City owned of land to the Mimnesota Department of Transportation for the purpose of constructing storm water ponding is hereby authorized, pursuant to the authority of Minnesota Statutes, Sections 471.64, 465.025, and 465.035. 2. The Mayor and City Manager are authorized and directed to take such actions as necessary to effect the conveyance thereof RESOLUTION NO. 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 DECLARING REPLACEMENT LAND PARCEL ADJACENT TO CENTRAL PARK TO BE NON - SIGNIFICANT AND AUTHORIZING THE CONVEYANCE OF THE PARCEL OF LAND WHEREAS, the City of Brooklyn Center desires to utilize a parcel of land known as the "Replacement Land" on the south side of 1 -94 from Central Park to Xerxes Avenue North for storm water ponding and wetland replacement to accommodate the expansion of 1 -94, as well as construction of a noise wall; and WHEREAS, the Replacement Land was conveyed to the City by Mn/DOT as partial mitigation for and replacement of Central Park and Shingle Creek Greenway land acquired for the purpose of expanding I -94 in the 1980s; and WHEREAS, the Replacement Land is used as open space and buffer, and is not used for active park or recreational purposes; and WHEREAS, Federal 4(f) legislation includes a clause whereby "Consideration under • section 4(f) is not required when the Federal, State, or local officials having jurisdiction over a park, recreation area, or refuge determine that the entire site is not significant "; and WHEREAS, the City of Brooklyn Center is the local official having jurisdiction over the Replacement Land; and WHEREAS, the Brooklyn Center Park and Recreation Commission has reviewed the current use of the Replacement Land and recommends that the City Council declare that the Replacement Land is non - significant for park purposes based on the following findings of fact: 1. The Replacement Land has not been incorporated into Central Park, and is not used for park or recreational purposes. 2. There is no future plan to use the Replacement Land for park or recreational purposes. 3. The current land use of the Replacement Land is Open Space and buffer, both of which would be accomplished by its proposed use for storm water ponding and noise wall. 4. Central Park and Shingle Creek would benefit from the proposed use as storm water ponding and wetland mitigation area as the quality of storm water discharged from I -94 into Shingle Creek would be greatly improved. WHEREAS, the City of Brooklyn Center desires to convey said Replacement Land to the Minnesota Department of Transportation for the purpose of constructing storm water ponding and • wetland mitigation to accommodate the expansion of I -94. RESOLUTION NO. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1. The Replacement Land is hereby declared to be non - significant. 2. The conveyance of the Replacement Land is hereby authorized provided MN /DOT gives such assurances as are deemed adequate the City Manager and City Attorney to protect the City from loss costs or damages for violation of any covenant or agreement restricting conveyance of the Replacement Land. This transfer is made pursuant to the authority of Minnesota Statutes, Sections 471.64, 465.025, and 465.035. 3. The Mayor and City Manager are hereby authorized and directed to take such actions necessary to effect the conveyance thereof. 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. 9g s MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Ronald A. Warren, Planning and Zoning Sp . ialieef 'st�nC.0 DATE: November 19, 2001 SUBJECT: Council Consideration Item — An Ordinance Establishing the Central Commercial Overlay District On the November 26, 2001, City Council agenda is consideration of a first reading on an ordinance amending Chapter 35 (Zoning Ordinance) that would establish a Central Commercial Overlay District in Brooklyn Center. The boundary for the district is defined in the proposed Section 35 -2240, Subdivision 4, and is shown on the attached map. It is generally an area bounded on the east and southeast by T.H. 100; on the west by Brooklyn Boulevard; on the north by an extended east /west line from Brooklyn Boulevard (approximately 445 ft. north of its intersection with County Road 10) to Shingle Creek Parkway and along the north property line of the Brookdale Square Shopping Center to John Martin Drive; then back to T.H. 100. The overall purpose of the overlay ordinance is to establish some guidelines to protect and enhance this defined area. It is believed that certain uses are totally inappropriate given the • nature of the ongoing redevelopment of this area (the Brookdale PUD, the Brookdale Corner redevelopment, etc.). Their exclusion is expected to preserve and enhance this area. Also, the ordinance amendment would allow the potential development of other ordinance regulations, restrictions and /or enhancements for this area at a future date that would not impact other similarly zoned areas. The uses excluded would include sauna establishments, massage establishments, currency exchanges, pawn shops and secondhand good dealers. It should be noted that the underlying zoning designations would still be effective and be the controlling regulations in the overlay area, other than what might be specifically set forth by this ordinance. The Plaiming Commission reviewed the draft ordinance at its meeting on November 14, 2001, and recommended it to the City Council for consideration. It is recommended that the City Council have a first reading on the ordinance amendment and set it for public hearing and adoption. ® CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the day of , 2001, at 7:00 p.m. at City Hall, 6301 Shingle Creek Parkway, to consider an ordinance establishing the Central Commercial Overlay District. Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance. Please notify the personnel coordinator at 612 -569 -3303 to make arrangements. ORDINANCE NO. AN ORDINANCE ESTABLISHING THE CENTRAL COMMERCIAL OVERLAY DISTRICT THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. Section 35 -2000 of the City Code of Ordinances is amended as follows: Section 35 -2000. OVERLAY DISTRICTS. In addition to the land use districts listed in Section 35 -300 of this ordinance, the following Overlay Districts are hereby established: • 1. Flood Plain District 2. Critical Area District 3. Historical Preservation District 4. CC Central Commerce Overlay District Any land which is classified by this ordinance as being within an Overlay District shall be subject to the regulations governing land use activities within such a district in addition to the use regulations established in Sections 35 -300 through 35 -331 of this ordinance, and to any other regulations as applicable. Section 2. The City Code of Ordinances is amended by adding new section 35 -2240 as follows: Section 35 -2240. CC CENTRAL COMMERCE OVERLAY DISTRICT 1. Land may be designated as being within the CC Central Commerce Overlav District by city ordinance. Land use within an area so designated shall comply with the regulations of this section in addition to all regulations applicable to the underlvin2 land use district established in Sections 35 -300 through 35 -331 of this Code and other regulations as applicable. 1 2. Uses allowed in the underlving land use district are allowed in the CC Central Commerce Overlay District except as provided in this section. 3. The following uses are not pennitted in the CC Central Commerce Overlay District: a. sauna establishments b. massage establishments C. currency exchanges d. pawn shops e. secondhand goods dealers 4. The following area is hereby established as being within the CC Central Commerce Overlay District: The CC Central Commerce Overlay District is located within the area bounded by a continuous line beginning at a point located at the intersection of John Martin Drive and T.H. 100 and going southwesterly along the centerline of T.H. 100 to its intersection with Brooklyn Boulevard: thence northerly along the easterly right -of -wav line of Brooklyn Boulevard to a point located approximately 445' northerly of its intersection with County Road No. 10: thence east along an • extended line made up_ of the south boundary lines of the plats for Grimes 2 nd Addition, Hinn's 4 th Addition and Hlpp's 5 th Addition, Hennepin County, continued to Shingle Creek Parkway: thence northerly along_ the east right -of -wav line of Shingle Creek Parkwav to the north boundary line of the plat for Brookdale Sauare 2" d Addition. Hennepin County: thence easterly said line to the John Martin Drive right -of -wav line: thence southerly the point of the beginning. Section 3. This ordinance shall become effective after adoption and upon thirty (30) days following its legal publication. Adopted this day of , 2001. Mayor ATTEST: City Clerk Date of Publication: Effective Date: ® (Underline indicates new matter; strikeout indicates matter to be deleted.) 2 • MINUTES OF THE PROCEEDINGS THE I C INGS OF E PLANNING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION NOVEMBER 14, 2001 CALL TO ORDER The Planning Commission meeting was called to order by Chair ProTem Graydon Boeck at 7:50 p.m. ROLL CALL Chair Pro Tern Graydon Boeck, Rex Newman, Sean Rahn, and John Whitehead were present. Also present were Secretary to the Planning Commission/Planning and Zoning Specialist Ronald Warren, and Planning Commission Recording Secretary Rebecca Crass. Stephen Erdmann and Dianne Reem were absent and excused. Chair Tim Willson arrived at 8:00 p.m. APPROVAL OF MINUTES — SEPTEMBER 13, 2001 There was a motion by Commissioner Newman, seconded by Commissioner Whitehead, to approve the minutes of the September 13, 2001 meeting as submitted. The motion passed • unanimously. CHAIR'S EXPLANATION Chair Pro Tem Boeck 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. Mr. Warren asked if the Planning Commission members whose terns will expire on December 31, 2001 are interested in reappointment to the Commission. Commissioners Newman and Whitehead answered in the affirmative. Commissioner Erdmann was absent and Mr. Warren will contact him about his interest in reappointment. AN ORDINANCE ESTABLISHING THE CENTRAL COMMERCIAL OVERLAY DISTRICT Mr. Warren presented to the Planning Commission an overview of an ordinance establishing the Central Commercial Overlay District. The area proposed is the area bounded by Highway 100 on the east, Brooklyn Boulevard on the west, to a point approximately 445' northerly of the intersection of County Road 10 and Brooklyn Boulevard then cast to Shingle Creek Parkway, then along the north side of the Brookdale Square Center to John Martin Drive, then back to Highway 100. He explained that the District is geared towards the way the City is currently zoned. The underlying zones will still remain in this area and existing uses will continue to be allowable under the proposed ordinance. It has been recommended to establish the Central ® Commerce Overlay District to protect the area from some uses that the City Council believes are 11 -14 -01 Page 1 ® not ap in this area such as sauna establishments, massage establishments, currenc � y exchanges, pawn shops and secondhand goods dealers. No such uses currently exist in this area. The area currently contains current redevelopment such as the Brookdale PUD and the previously redeveloped area at Brookdale Comer (Cub redevelopment site). Mr. Warren further explained that the City recently had to acquire the property at 5801 Xerxes Avenue (the old Jerry's site) to prevent this type of use at this location. Commissioner Rahn asked why uses such as those mentioned are considered inappropriate at the Jerry's site but are allowed in the Northbrook Shopping Center.. Mr. Warren responded that these uses must be allowed somewhere in the City and the licensing regulations for these businesses limit these types of uses in certain areas. Since these uses are already allowed in an area such as Northbrook, the ordinance could not be changed to disallow the type of use. Commissioner Rahn responded that he feels there may be businesses that the City does not want near Brookdale that are being pushed into other areas such as Northbrook which is surrounded by a residential area. Commissioner Boeck stated that the purpose of this ordinance is to maintain the integrity of the area surrounding Brookdale. Mr. Warren added that establishing this area also opens up the opportunity in the overlay area for development requirements not required in other areas and that e the existing underlying zoning designations remain the same and the existing uses would be allowed. It is believed that the overlay ordinance will better protect the efforts being made in the Central Commercial area. There was discussion by the Commission members about the wording in Section 35 -2240. Mr. Warren explained that the ordinance had been drafted by the City Attorney. He also noted that it is designed so that other appropriate requirements or regulations could be added at sometime in the future. There was a motion by Commissioner Rahn to add the Northbrook Shopping Center at 57 and Logan Avenues to the area being established as within the Central Commerce Overlay District, Chair Willson asked for a second to the motion. The motion died due to lack of a second. There was a motion by Commissioner Boeck, seconded by Commissioner Willson, to recommend that the City Council adopt the ordinance establishing the Central Commercial Overlay District. Voting in favor: Chair Willson, Commissioners Boeck, Newman, Rahn and Whitehead. The motion passed unanimously. COMMERCIAL ZONING REORGANIZATION Mr. Warren next presented to the Planning Commission for review and discussion an overview of a draft commercial zoning reorganization. This draft ordinance g proposal would allow for four g p P zoning districts: C -1 (Neighborhood Commercial District), C -2 (Brooklyn Boulevard 11 -14 -01 Page 2 ® Commercaal District - - ), C 3 (Central Commercial District), and C 4 (Highway Commercial District). The proposed reorganization shuffles uses so that they are based more on location. One change includes limitations in the C -1 zone for businesses such as gas stations and certain eating establishments. He added that fast food restaurants would not be allowed in the C -1 zone but would be allowed in the C -2, C -3 and C -4. A discussion followed regarding outside storage associated with certain uses. Mr. Warren explained that similar uses would be allowed in both C -1 and C -3 zoned property, however, outside storage is not allowed in C -1 even with appropriate screening provided. Chair Willson suggested a change to the proposed ordinance in Section 35 -320, Subdivision la, to remove all references to "no outside storage is allowed" in the C -1 (Neighborhood Commercial District). It was the consensus of the Commission to make this change. Mr. Warren stated that Commissioner Erdmann had a concern with uses such as recreation and amusement places in the C -2 zone since they require such a large parcel of land. Commissioner Erdmann felt that perhaps they should be limited to the C -3 and C -4 zones only. Chair Willson responded that it has been a long term plan to combine parcels of land along Brooklyn Boulevard (which would be in the proposed C -2 zone) to create larger parcels for commercial developments. It was the consensus of the Commission that such uses listed in the • ordinance would be appropriate along Brooklyn Boulevard. Mr. Warren described the area of 53 and Dupont, which contains an auto repair business, and suggested that it remain a non - conforming use as it does not seem to fit the requirements for any proposed zoning district with the current business that is there. Mr. Warren added that this ordinance amendment abandons the requirement for a 35 ft. green strip along major thoroughfares and replaces it with a 15 ft. green strip requirement. He also stated that mini storage facilities have not been allowed in the past in any commercial zoning district. With this change, they would only be allowed in C -4 (Highway Commercial) zone. Commissioner Newman commented about a change to the proposed permitted uses in the C -1 district. He suggested under item h, "electrical repair service shops, radio and television repair service shops" be eliminated and replaced with "consumer electronics ". It was the consensus of the Commission to make this change. Commissioner Newman suggested that under Section 35 -411 any reference to the requirement for trees at new nursing homes be eliminated. Mr. Warren was in agreement noting the landscape point system generally provides for adequate landscape requirements for all new construction. Commissioner Rahn asked Mr. Warren if Super America at 57 and Logan is a special use in e that zoning district. Mr. Warren responded that Super America is a Special Use in the C -2 zone 11 -14 -01 Page 3 • and is considered a non- conforming use because it abuts R -1 zoned property. The only way Super America could expand is under a PUD rezoning. OTHER BUSINESS There was no other business. ADJOURNMENT There was a motion by Commissioner Boeck, seconded by Commissioner Newman, to adjourn the Planning Commission meeting. The motion passed unanimously. The meeting adjourned at 9:15 p.m. Chair Recorded and transcribed by: Rebecca Crass • 11 -14 -01 Page 4