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HomeMy WebLinkAbout1994 06-27 CCP Regular Session CITY COUNCIL AGENDA CITY OF BROOKLYN CENTER JUNE 27 1994 7 p.m - 7- /1 1. Call to Order 2. Roll Call 3. Opening Ceremonies f , 4. Open Forum 5. Council Report 6. Approval of Agenda and Consent Agenda -All items listed with an asterisk 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 in its normal sequence on the agenda. ri 7. Approval of Minutes: * a. June 6, 1994 -. Special Work Session * b. June 13, 1994 - Regular Session 8. Presentation: a. 1994 League of Minnesota Cities Achievement Award for CO-OP Northwest Project 9. Planning Commission Items: a. Planning Commission Application No. 94006 submitted by Wendy's International. Request for preliminary plat approval to combine into a single lot the property at 5545 Xerxes Avenue North and the vacant lot immediately to the south. This application was recommended for approval by the Planning Commission at its June 16, 1994, meeting. b. Planning Commission Application No. 94007 submitted by Maranatha Baptist Care Center. Request for site and building plan approval and an amendment to its special use permit to construct a 5,125 square foot addition to the nursing care center. This application was recommended for approval by the Planning Commission at its June 16, 1994, meeting. 10. Discussion Items: a. Brooklyn Boulevard Plan -BRW will present its final recommendations for the redevelopment of Brooklyn Boulevard. CITY COUNCIL AGENDA -2- June 27, 1994 b. Resolutions Providing for the Issuance and Sale of General Obligation Bonds for Street and Storm Water Improvements 1. Resolution Providing for the Issuance and Sale of $835,000 General Obligation Improvement Bonds, Series 1994B 2. Resolution Providing for the Issuance and Sale of $1,830,000 General Obligation Storm Sewer Revenue Bonds, Series 1994A f n c. Recommendation of the Financial Commission Regarding, the Mayor and Council Member Total Compensation d. Request for Proposals; Police Department Management Consultant e. Citizen Appeal Regarding Clear View Triangle Violation f ' f. ; Presentation of Pavement Management Program Staff Re g. port Regarding Humboldt Avenue Traffic Control h. Report on COPS Program /Humboldt Avenue Substation i. Auditor's Management Letter and Management Responses j: Auditor Request for Proposals £ 11. resolutions: • a. To Authorize Certain Appraisal Activities for City Purposes by Employees in the Assessing Division • b. Amending the 1994 General Fund Budget to Implement AutoCAD Automated Drafting c. Amending the 1994 Pay Plan, Authorizing Upgrade of One Engineering Secretary Position to Public Services Administrative Aides d. Approving Plans and Specifications and Authorizing Advertisement for Bid, .,� f,F Improvement Project No. 1994 -31, Playground Equipment Replacement at Willow Lane Park * e. Declaring a Public Nuisance and Ordering the Removal of Diseased Trees (Order No. DST 06/27/94) i CITY COUNCIL AGENDA -3- June 27, 1994 !� * f. Accepting Work Performed and Approving Final Payment for 1993 Diseased Tree Removal Program, Improvement Project No. 1993 -01, Contract 1993 -A g. Declaring Disapproval of the Actions of a Councilmember -This resolution was requested by Councilmember Kristen Mann. f * h. To Appoint Outside Prosecutor * 12. Licenses s _a 13. Adjournment Council Meeting Date June 27, 1994 31 City of Brooklyn Center Agenda Item Number �— Request For Council Consideration Item Description: CITY COUNCIL MINUTES - JUNE 6, 1994 - SPECIAL WORK SESSION CITY COUNCIL MINUTES - JUNE 13, 1994 - REGULAR SESSION Department Approval: Sharon Knutson, Deputy City Jerk Manager's Review/Recommendation: az�aYdAs ,. No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached _) • • Recommended City Council Action: MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF UROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL WORT{ SESSION JUNE 6 1994 CITY BALL COUNCIL CIIAa1 DERS CALL TQ.ORDER The Brooklyn Center City Council met in special work session and was called to order by Mayor Todd Paulson at 7:43 p.m. ROLL CALL Mavor Todd Paulson, Councilmembers Celia Scott, Barb Kalligher, and Kristen Mann. Also present were City Manager Gerald Splinter, City Attorney Charlie LeFevere, and Council Secretary Barbara Cullman. Councilmember Dave Rosene arrived at 7:14 p.m. CONSIDERATION OF PERSONNEL FVAT IIATT p12oCESS The City Manager noted the contents of the materials packet distributed. He commented a performance evaluation is usually conducted by the employer or supervisor, and the complicating factor in this case is that there are five "employers" or " supervisors of the City Manager position. Councilmember Kalligher asked whether the Council should pick a procedure and whether, once the process is chosen, the councilmembers will meet with the City Manager individually or as a group. The City Attorney replied the Council must choose an evaluation procedure and that choice will determine whether there is a group session or individual sessions with the employee. Councilmember Kalligher commented the City Manager should be offered responses to actions taken, observations made by councilmembers, and goals for the future, She said the Council should "brainstorm" and develop individual goals for the City Manager as that would be helpful to him. She added if the councilmcrmbcrs work together it would be a more timely process. The City Attorney said the evaluation can be done either by the councilmembers themselves or by a professional consultant, and once that decision is made it can. still be changed. He suggested two common procedures, that of each member meetin g with the City Manager individually and then sharing those results with the group, or that of each councilmcmber performing an individual evaluation, then discussing it with the group and then the group Q meetin with the City Manager, He said an effort should be made for the councilmembers 4!2%94 1 1 - to agree so that the employee does not end up with "mixed signals." Councilmember Kalligher asked whether one -to -one sessions would be closed. The City Attorney said they would be closed. However, if the Council plans to meet as a whole it must announce the purpose of the meeting and that it is closed. Then, the next time the Council meets it must summarize the closed meeting, The group evaluation meeting must be closed unless the subicct requests it to be open, according to the Open Meeting Law. Councilmember Scott said she preferred the City of New Hope evaluation form, which rates on a nine to one scale, She said the format seems thorough and allows for information - sharing at the end of the procedure so the councilmembers can know the thoughts of the other councilmcmbcrs, She also said she liked the "progress discussion," She said often employees create their own goals and this would help prevent misunderstandings concerning job performance. Councilmember Mann stated she agreed on the appropriateness of the City of New Hope form and the "progress discussion." She added the Council should see that the City Manager has some leeway in regard to when this process begins. Councilmember Dave Rosene arrived at 7:14 p .m. 7rie City Manager reviewed how he, as a supervisor, performs employee evaluations. He said, referring to the evaluation of his position, there are various proccdures and none is the "right" procedure. Councilmember Kalligher said she likes the idea of the "progress discussion" because it allows the employee to offer his opinion. Councilmember Scott said each eouncilmember would have a copy of the other members' evaluation when they met together; that way they would be exposed to different perspectives. Mayor Paulson agreed with the group discussion concept and said he thinks perhaps that element should come first in the process. Councilmember Rosene added the group discussion would result in a focus for each question rather than leaving it open to various interpretations. He said a common interpretation is needed in order to determine a number rating. Councilmember Kalligher said the rating should be based on each council m ember's interpretation. She said she disagreed with the idea of deciding together what each question means as that influences each individual's thoughts. Mayor Paulson said he would like the benefit of hearing other councilmembers' thoughts. Councilmember Kalligher said that activity should oc;ur at the end of the process; Mayor 494 - 2 - Paulson repeated it should occur at the beginning of the process. Councilmember Mann offered the plan of the City Manager completing his portion, each councilmember completing their portion, the group meeting together, and then the group meeting with the City Manager. Councilmember Scott said the statements e is are written 1 ce I ar y and shouldn't require discussion to interpret. Mayor Paulson said if individuals give ratings without group discussion they might become locked into their position. Councilmember Scott said a position can be changed but there must be a starting oint. $ She said she thinks each councilmember should do an evaluation then the group should meet to form a unit evaluation. Councilmember Kalligher added the group meeting should be closed and the councilmembers should have read all comments prior to the meeting. Councilmember Scott commented the process is complicated but it needs to start on paper. She said when the evaluation is completed, the City Manager should be given clear statements and guidelines. The evaluation needs to be performed; putting it off is not fair to the City Manager. Councilmember Kalli her expressed concern b g p about councilmembers handling confidential information during this process. The City Attorney replied any information will be respected as usual; security will be maintained. Ccunci member Scott said the evaluation materials are clear and complete; they say to give an employee a chance to express his viewpoint and to ask the employee for his concerns. She said each councilmember must justify the ratings he gives to himself. The City Manager added evaluating employees is tough because it is subjective. He said the Job Profile document gives a split of duties, sub- duties, and tasks, The figures are averaged over two, three, or four years but will give an idea of the time spent. Councilmember Scott asked Mayor Paulson which evaluation form he preferred. Mayor Yaulson agreed with Councilmember Scott on some F flints, but wants to make sure the Council is thinking in the same way. The City Attorney offered a review of Councilmember Mann's stated schedule: performance progress discussion completed by the City Manager using the Brooklyn Center form, circulation of that form to all councilmembers; completion of New Hope form by each councilmember, circulation of that form to the City Manager and other councilmembers; personal interviews of the City Manager by each councilmember individually, making supervisor's notes; exchange of supervisor's notes by councilmembers; meeting of City Council with the City Manager. The City Attorney added that would be an appropriate 4/ - 3 i Opportunity to suggest changes in the job description, etc. Councilmember Scott suggested each councilmember could submit a letter with the summary to address anything that needs to be changed. The City Attorney said the councilmembers should feel free to communicate outside of the evaluation form if necessary. The City Manager noted the job description does not fit the new ADA requirements. Mayor Paulson agreed there are other aspects which need to be considered, such as the job description, phone records, car usage, etc. The City Attorney said those statistics fall under procedure consideration rather than job evaluation. He added that data should be presented at an open Council meeting rather than a closed session. The City Attorney commented before the Council meets, the members should feel free to communicate to each other on what goals they want presented. In step one, items can be added to the evaluation, The City Manager added the Council might want to modify the form after the evaluation is completed. He said with the new budget, time will be allocated by more specific categories. The City Attorney suggested a timetable be set. Councilmember Scott said the members should begin their evaluation as soon as the City Manager completes his part. The procedure should not involve the entire summer. Councilmember Kalligher suggested completion by July 15. The City Attorney mentioned the first part will take some time. The City Manager asked the City Attorney to prepare a description of the evaluation p roctiss. Councilmember Scott agreed there should be a description of the process by the next Council melting so it can be reviewed. She asked whether step two could be completed in two weeks. Councilmember Rosene questioned whether it was necessary to have the City Manager's evaluation before councilmembers begin working on their part, Councilmember Scott said it was not necessary. It was decided that after the City Manager's evaluation is done the councilmembers will have two weeks to complete their evaluations. 4!2/94 _ 4 - Councilmember Kalligher asked whether that is two weeks from Monday night. Councilmember Mann said to wait a week to review the others' evaluations. The City Manager asked for a rough schedule. The City Attorney said all evaluations will be in by July 15. They will then be circulated and interviews can be scheduled. Maybe supervisor's notes can be exchanged in early August. Councilmember Rosene said he was hopeful the timeline can be followed. Councilmember Scott said once the schedule is set the evaluation will go O.K. unless something comes up. She said there should not be expectations communicatcd to the general public in case the timeline does not work out. The City Attorney said the councilmembers should submit their work as soon as it is done; maybe deadlines will be exceeded. Councilmember Kalligher mentioned updates can be given at regular Council meetings. The City Manager said the New Hope forms would be sent out, and Monday the City Attorney will have them for confirmation. Mayor Paulson said he would agree to the plan since the other members of the Council were satisfied. -APSOU RNMENT There was a motion by Councilmember Kalligher and seconded by Councilmember Scott to adjourn the Meeting, The motion passed unanimously, The Brooklyn Center City Council adjourned at 7.57 P.M. Deputy City Clerk Todd Paulson, Mayor Recorded and transcribed by; Barbara Cullman Timesaver off Sire Secrettuiai 40-194 - 5 - i MINUTES OF THE PROCEEDINII OF T HE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF H.ENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION JUNE 13, 1994 CITY HALL CALL TO ORDER The Brooklyn Center City Council met in regular session and was called to order by Mayor Todd Paulson at 7 p.m. ROLL CALL Mayor Todd Paulson, Councilmembers Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann, Also present were City Manager Gerald Splinter, Director of Public Services Diane Spector, Finance Director Charlie Hansen, City Engineer Mark Maloney, Captain Scott Kline, City Attorney Charlie LeFevere, and Council Secretary Barbara Collman. OPENING? CEREMONIES Jim McCluskcy offered the invocation. PEN FORU . Mayor Paulson inquired if there was anyone present who wished to address the Council. Mary Ziskovsly, 1308 69th Avenue North, a volunteer at the Humboldt Avenue substation, presented a petition with signatures of 740 citizens. She said the petition asks for reinstatement of the officers in the COP (Community Oriented Policing) Program. Changing the program to a system of officer rotation will he heading the program in the wrong direction and negate the efforts of the past two years. The program has had a Positive effect on teens; business people have seen a change, but there is concern the situation will regress if the Program is suspended, She mentioned funds were allocated for two new police offic rs but they have not been hired. She said the program is working well so it should not be changed. She also gave credit to the three COP officers. Dominic Thomas, a teen, also spoke in favor of tine COP program. He mentioned he trusts the three COP officers, Frank Roth, Keith Carlson and Scott Nadeau, and if the program is dropped the change will result in a rise in crime. Councilmember Rosene commented that Dominic Thomas was part of a recent forum on crime and youth. Beth Kunz, manager of The Ponds and represents the Managers' Coalition Group, also 6/13/94 _ -1 s� voiced support for the COP program. She said residents of The Ponds had been fearful of the youth situation in the area. fn Jg01, the COP of ddr§ helpad Clean U the t0W Ilh0D1G area; however, in 1993 the COP program was not active there and the problem began again. Mayor Paulson asked the City Manager to comment on these statements by citizens. The City Manager said Sergeant Roth is in charge of the COP program, and it is the hope there will be a change in the philosophy of the program resulting in the involvement of all police officers rather than just a few, as the program was initially implemented. Captain Scott Kline stated the program has been in the Humboldt area for five years and originally included officers from the police chief on; that level of involvement is sought. Captain Kline explained the current complement of police officers. He said adjustments need to be made to cover the street shifts during the upcoming vacation period; out of 42 authorized police officers, one has been terminated; two are in Injured On Duty status; three are the chief and captains; seven are sergeants; six are investigators; and two are in the process of being hired. Therefore, there are only 21 working patrol officers at the present time and three people are necessary for a result of two on duty. He added one of the COP officers has requested tivc weeks of vacation in June and July. Councilmember Rosene asked to what extent the sergeants work out on patrol. Captain Mine said the sergeants are out on patrol but must be counted as supervisors rather than officers because they must respond to administrative matters. Councilmember Kalligher asked whether there will still be officers at the substation. Captain Mine said there will be officers at the substation; Sergeant Roth will still be handling requests for speakers and making assignments with the officers on duty. The change will allow more flexibility in scheduling. Councilmember Kalligher asked how long it will be until the program resumes to the usual status. She questioned whether the problem will be solved with the hiring of the two police officers for which funds have been allocated. Captain Kline said he hopes hiring will be completed soon and the new officers ready to take their places by fall. Also, one of the injured police officers may be back to work by fall. Mayor Paulson asked the City Manager why it has taken six months to fill the two positions which were authorized in the budget on January 1. The City Manager said one reason is that the City had requested federal grant money for more officers and the chief did not want to jeopardize it. Two officers were added but there were retirements and resignations. He also said the testing process was under challenge by the court. A modification is needed in the selection process to obtain suitable applicants. Councilmember Scott commented two police officers were hired, but two retired, so the count stayed even. The City Manager agreed. 6113194 - 2 - Councilmember Scott asked Captain Kline whether the two officers in the hiring process currently are experienccd officers or will be new to police work. Captain Kline said they are inexperienced. Mayor Paulson said he was concerned two more officers were authorized and not hired. He feels the City Council should have been advised of this matter. He said the City Council should also have been advised of changes in the COP program. These are policymaking decisions which the Council should have been involved in or, at least, aware of, and policymaking decisions should be carried out. The City Manager said the officers change because according to union contract the shifts are bid by seniority and therefore, it is not possible to estimate who will be on what shift. He added the COP program should not be a program but a philosophy in which all officers are involved. This change is simply a more effcrtive use of personnel. Mayor Paulson asked what is being done to implement the philosophy among the police officers, Captain Kline said the police officers will be assigned duties in the COP program. Councilmember Scott suggested a copy of the petition be sent to the Police Chief since adjusting the program was his decision, Mayor Paulson reiterated policy decisions of the Council should be enacted, and the Council should be involved in the decision - making process. He would like to see those issues addressed in the future. In response, Ms. Ziskovsky said the fact is that the COP program works and is being removed at the peak of its effectiveness. The program resolves a problem through personal contact. There is not a scheduling problem; if necessary, the City should offer overtime to policemen. She emphasized money is not the answer to the future of Brooklyn Center. The three individual officers are vital and it is a big mistake to remove them. Councilmember Scott asked Ms. Ziskovsky whether she understood Captain Kline to say one of those throe officers had requested five weeks vacation and wouldn't be available regardless, Ms. Ziskovsky said she understood. Mayor Paulson asked when the change would go into effect. Captain Kline said the present schedule is still in effect until the bidding is done. Mayor Paulson commented if a policy decision were made there would be time before the change is effected, He wondered if the issue could be addressed on the council agenda i i time to stop the change in the program. Captain Kline said it takes three weeks to make changes, and he is concerned about the vacations the police officers have earned. 6/13/94 _ 3 Mayor Paulson commented volunteers run the program with the involvement of two police officers for 15 minutes every night. All that is needed is 15 minutes each night and a sergeant administering the program. Captain Kline said the summer plans are frozen because of the union bidding. If there is going to be further action taken, it needs to be immediate. Councilmember Scott mentioned the officers who work at the substation may even be bumped from that police shift due to seniority. She said Captain Kline is saying nothing is sure. If those officers are assigned middle shift, they can still go to the substation. Captain Kline requested any action be immediate because of the effect on plans of the officers. Mayor Paulson said that would rea11y be a separate decision from whether or not there is going to be an officer assigned. He said he is not advocating an upset in the schedule, just consistency in the program. Captain Kline said the program will not be run with just two or three officers who are set aside. Councilmember m er Rosene said he didn't feel the citizens were saying that. Captain Kline said the officers can still stop in at the substation. Councilmember Rosene said if the schedule is set the officers are still going now. Captain Kline agreed. Councilmember Rosene said the residents have the impression the officers have been removed as of this week, Captain Kline said if that action had been taken it was by order of Sergeant Roth. Councilmember Kalligher asked whether officers will still go to the substation but there is just no guarantee of a slot on the middle shift. Captain Kline said there will be no COP slot; all officers will participate. The intention is in the fall there will be enough officers, new bidding will be done, then officers will be sent to the substation, Councilmember Kalligher asked whether overtime is being used to cover the shifts. Captain Kline responded affirmatively, Councilmember Mann asked whether the officers will be rotated. Captain Kline said after the vacation period there will be permanent COF officers but the whole department will be involved. Rhonda Manderfeld, manager of Four Courts, said the COP program has helped her area's reputation be turned around. She said even 15 minutes per day of police walking the property is vital. This summer the officers are not coming around very often and there are teens around. She added the Council is being told from all sides this issue is crucial; it is 6/13/94 -4 - asked for some attention and communication. Mary Nelson, 5302 Morgan Avenue, said an important point is it takes time for officers to build a trust with kids. A rotation of officers is a show of force rather than a relationship of trust with individual officers. Councilmember Scott requested a meeting be scheduled with the Police Chief and Sergeant Roth to address the concerns. She agreed the Council should have been made aware of this situation before this point. She agreed with Captain Kine the officers need to be out of their cars walking patrols. The Police Chief needs to be made aware of this issue, The City Council has sponsored the COP program and doesn't want to see it "down the drain." The City Manager said he and the Police Chief became aware of this the previous Thursday or Friday, The original rumor was the substation was being closed. The Staff is willing to work with volunteers, the police department, and the Police Chief. Councilmember Scott asked whether a report could be given at the next Council meeting. The City Manager replied affirmatively. Mayor Paulson asked whether the officers would still be going to the substation. The City Manager said they will still go but multiple officers will cover the hours, That doesn't necessarily mean a diffcrcnt officer every night, as an officer may be on duty seven days and off three. More flexibility is necessary for the summer. There cannot be an assumption the officer will be the same. Councilmember Rosene commented if there was a matter of policy or of closing the substation or ending the program the City Council would have been involved. Since it is a management decision the Council is reluctant to take control, but it is making opinions known. He said he agrees consistency within the COP program is important; therefore, perhaps those three particular officers should be rotated and another officer who is a good fit worked into the rotation. There was a motion by Mayor Paulson and seconded by Councilmember Rosene to direct the Police Chief, Sergeants, Police Officers, and Humboldt Substation volunteers to meet to discuss what is going on and what can be done with the Humboldt Substation; to keep the COP program at the Humboldt Substation; keep a sense of regularity as far as officers assigned at the Humboldt Substation; specify philsophical implementation of the COP program and be specific on manpower; and to hire two police officers as adopted and approved in the 1994 budget, The motion passed unanimously. The City Manager was asked by a citizen when the meeting will take place. The City Manager said a date for the meeting would be set the next day. 6/13/94 -5 - Councilmember Scott asked for a minimum timeline for the meeting. She suggested one week; the City Manager agreed. Councilmember . Kalli her asked for an update on Friday. g P Y Jill Schendel, 7242 Willow Lane North, spoke about the renovation of neighborhood parks. She said the Park and Recreation Commission advised her to come to the City Council. The parks in Brooklyn Center are functional but not "truly great" and don't satisfy the needs of today's families, The Park and Recreation Commission has a plan for updating the parks, but there are five to seven years to go on the plan. Some progressive people lose interest and move from Brooklyn Center, The parks need to be changed in these areas: they need to offer lifetime sports opportunities; they need landscaping; they need a variety of safe equipment which is age- appropriate; they need to be inviting, She mentioned a project in Baltimore in which teens and adults were involved in building parks and crime in the area dropped. She talked specifically about her neighborhood park. It is last on the schedule to receive new equipment (1997). Because of the Capital Improvement Projects fund, the completion date could be delayed two years and by then the parks will be a "wreck." The park system is not a priority and citizens are tired of waiting for improvement to the parks. She asked the Council to find a way to push improvements forward by increasing the balance in the Capital Fund, a bond issue, matching funds, or neighborhood fund- raising drives. Councilmember Kalligher suggested this topic be considered at the work session on June 21. The City Manager said Council is - looking into capital bond issues, including parks. Councilmember Scott suggested Ms. Schendel contact the commissioner from her area and offer to work on this issue. Councilmember Mann suggested Ms. Schendel call the Director of Recreation. Councilmember Scott said there has been a Neighborhood Advisory Committee for over twenty years. The City Manager said the Neighborhood Advisory Committee was merged with the Planning Advisory Committee. The City Manager mentioned improvements are being made at Willow Lane in conjunction with the PTO, and Evergreen was done the same way. Mayor Paulson said re- prioritizing was discussed but not completed. The City. Manager said Council will be looking at the Capital Improvements Fund at the same time as the budget, so there will be discussion on it. The Park and Recreation Commission had shuffled due to a greater need. Mayor Paulson asked whether parks could be shuffled with something else in the Capital 6/13/94 - 6- Improvements budget. The City Manager said it will be considered at the end of August. Mayor Paulson said perhaps it should be considered separately from the budget. The City Manager said the two go together. Mayor Paulson said he likes the other options such as matching funds. Councilmember Rosene mentioned one resolution on the agenda concerns flowers from the Rotary Club and this is a good example for other organizations. He likes the ideas for citizen involvement. Rod Snyder, 6408 Willow Lane, chairman of Willow Lane Association, said he has spoken to Ms. Schendel. He said putting money into a project doesn't necessarily provide the best result as some areas where money was spent then had vandalism. He commented this issue relates to the COP program issue; the mix of volunteers and officers have had an effect, In regard to the arks g parks, can kids be enlisted so they take ownership and will care for the parks. Creative partnerships are needed. Not all parks are paired with schools. Dave Olsen, 1501 73rd Avenue North, suggested Eagle Scout projects could be a source of help in this area. boy Scouts are looking for these projects, which use 500 -600 hours of time. Playgrounds could be built, not just cleaned up. If adults and kids in an area are involved (and materials provided), vandalism is not likely. Councilmember Rosene commented the Council recently heard about such a project from a Boy Scout. Mr. Olsen said he could furnish names of scoutmasters in the Viking Council. David Mckenzie, Lake City, Minnesota, said he holds bonds and represents other bond- holders who hold bonds in the Earle Brown Commons. The complex is in Chapter 11 and bankruptcy due to the tax structure. The planned senior citizen center was never completed, but the complex is in the Tax Increment Financing (TIF) district so it is now Chapter 11. A second bond issue for $6 million was added to the TIF district; taxes are difficult. There are 135 families who are concerned about the viability of the project. It is a handicap that the senior center was not completed. Tax is 267o to 28% currently; similar properties are 14 % to 15 %. This is because it is in the TIF district and the project was not completed as proposed. He asked the Council to put someone on the agenda to give details on taxes. Mayor Paulson said this is a complicated issue and it is a good idea to have it presented at an EDA work session. He added the purpose of the Open Forum is to present issues so they can be scheduled for hearing at a later date. The City Manager said it would be put on the a; enda for the next EDA work session. He mentioned there are issues other than taxes involved in the bankruptcy. The senior facility was to be in the building, The City did its part by Contributing to the kitchen and a room within the building. The idea of a separate center was dropped early in the plan. 6113/94 -7- Mike Schwartz, 7100 Humboldt Avenue, stated reconstruction on Humboldt Avenue is now oft the schedule for this year. He said certain parts of the plan (stop signs, No Right Turn sin noise nuisance ordinan si e ) could be i H implemented re ardI said h neig h bors p ess, e s the g want to know whether any improvements will be made. He added money and efforts have been spent on this issue. Councilmember Rosene agreed with putting a stop sign on 67th, putting a No Right Turn (at certain times) sign up, restriping pedestrian walks enforcing the traffic laws, and making a Left Turn Only lane. He said he would he willing to make a motion to that effect. Councilmember Kalligher asked if he meant the stop sign on Woodbine. Councilmember Rosene said he meant 67th. Councilmember Kalligher asked about the problem of buses. Councilmember Rosene said the buses can stop or cuttings could be constructed. Mayor Paulson asked the status of the items mentioned. The City Manager said those items were considered part of the whole project so there had been no further action. He described items of concern with the projects mentioned, such as specific times to be used for the No Right Turn sign, and a conflict with too many signs. The City Manager said he would like the City Engineer to review the issues and give a response if action is desired He added the Council should reconsider the rationale on the stop signs. Councilmember r i o tuber Scott inquired about crosswalk restriping and No Right Turn sign installation while the project is on hold, Councilmember Mann asked what hours are the peak traffic problems. Mr. Olsen said Posting six to eight would be fine. There was a motion by Councilmember Kalligher and seconded by Councilmember Mann to install a No Bight Turn from d a.m. to 8 p.m, sign, restripe crosswalks on Humboldt Avenue, and receive a report on other issues at the next meeting, including consideration of a stop sign at 67th Avenue. The motion passed unanimously. COUNCIL. REPORTS There were no Council Rcports. AP V AI. F AGENDA AND NSENT , A AC�ENI Mayor Paulson inquired if any Councilmember requested any items be removed from the consent agenda. No requests were made. There was a motion by Councilmember Scott and seconded by Councilmember Mann to 6/ 13/94 g - approve the June 13, 1994, agenda and consent agenda as printed. The motion passed unanimously. APPROVAL OF MINUTES MAY 16 1994 - SPECIAL WORK SESSION There was a motion by Councilmember Scott and seconded by Councilmember Mann to approve the minutes of May 16, 1994, special work session as printed. The motion passed unanimously. MAY 22,,--1994 - REGULAR SESSION There was a motion by Councilmember Scott and seconded by Councilmember Mann to approve the minutes of May 23, 1994, regular session as printed. The motion passed unanimously. RESOLUTIONS RESOLUTION NO 94 -107 Member Celia Scott introduced the following resolution and moved its adoption; RESOLUTION EXPRESSING RECOGNITION OF AND APPRECIATION FOR THE OF JON PERKINS FOR HIS DEDICATED PUBLIC SERVICE ON THE HOUSING COMMISSION AND WATER MANAGEMENT PLAN TASK FORCE The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously, RESOLUTION NO, 94 -108 Member Celia Scott introduc %ed the following resolution and moved its adoption: RESOLUTION EXPRESSING RECOGNITION OF RICHARD GENETTI FOR HIS ACHIEVEMENT IN SWIMMING 500 MILES IN THE BROOKLYN CENTER PUUL The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. RESOLUTION NO. 94 -109 Member Celia Scott introduced the followhig resolution and moved its adoption: RESOLUTION AMENDING THE 1994 GENERAL FUND BUDGET TO PROVIDE FOR CERTAIN ADA COMPLIANCE EXPENDITURES The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. g - 6113t 4 - 9 RESOLUTION NO. 94 -110 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION DECLARING SURPLUS PROPERTY The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. RESOLUTION NO. 94 -111 Member Celia Scott i,itroduc cd the following resolution and moved its adoption: RESOLUTION ACCEPTING BID AND AUTHORIZING THE PURCHASE OF ONE (1) TRUCK COMPLETE WITH SEWER VAC CATCH BASIN CLEANER The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. RESOLUTION NO. 94 -112 Member Celia Scott introduced the following resolution and movcd its adoption; RESOLUTION ACCEPTING BID AND AUTHORIZING THE PURCHASE OF ONE (1) SANITARY SEWER MOBILE PUMP The motion for the adoption of the foregoing resolution was duly seconded by member 5 Kristen Mann, and the motion passed unanimously. RESOLUTION NO 94 -113 Member Celia Scott uitroduced the following resolution and movcd its adoption: RESOLUTION ESTABLISHING IMPROVEMENT PROJECT NO. 1994-20,24" WATER MAIN REPAIR, I -94 AND DUPONT AVENL;E NORTH, APPROPRIATING FUNDS, APPROVING PLANS AND SPECIFICATIONS, AND AUTHORIZING ADVERTISEMENT FOR BIDS The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion p=cd unanimously. RESOLQTI N NO, 94 -114 Member Celia Scott intruduc.cd the following resolution and movcd its adoption: RESOLUTION ESTABLISHING IMPROVEMENT PROJECT NO. 1994 -25, PEDESTRIAN BRIDGE REPAIR IN GARDEN CITY PARK AND AT COUNTY ROAD 10, APPROPRIATING FUNDS, APPROVING PLANS AND SPECIFICATIONS, 6/13/94 - 10- AND AUTHORIZING ADVERTISEMENT FOR BIDS The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously, RESOLUTION NO 94 -115 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION AMENDING THE 1994 PAY PLAN, AUTHORIZING PERSONNEL CHANGES AT THE GOLF COURSE The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. RESOLUTION NO. 94 -116 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES (ORDER NO. DST 06/13/94) The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously, RESOLUTION NO, 94 -117 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING WORK PERFORMED AND APPROVING FINAL PAYMENT FOR I214TROVEMENT PROJECT NO, 1993 -25, CONTRACT 1993 -I, STORM SEWER REPAIRS AT 69TH AVENUE NORTH AND JAMES AVENUE NORTH The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. RESOLUTION NQ, 94 -118 Member Celia Swu uitroduced the following resolution and moved its adoption: RESOLUTION ACCEPTING SPECIAL LEGISLATION BY GOVERNING BODY PURSUANT TO MINNESOTA STATUTE$ 645.02 AND 645.UZ1 (1'IF DISTRICT LEGISLATION) The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. 6/13/94 RESOLUTION NO 94 -119 � hfe,iTt)eT C •1 •. is Scott intr T ed the f ollowin resolution esolution and moved i ts adop tion: RESOLUTION ACKNOWLEDGING GIFT FROM THE ROTARY CLUB OF BROOKLYN CENTER FOR CENTRAL PARK FLOWERS The motion for the adoption of the foregoing resolution was duly seconded by member Kristcn Mann, and the motion passed unanimously. RESOLUTION NO 94 -120 Member C, ,lid Scott introduced the following resolution and moved its adoption: RESOLUTION ACKNOWLEDGING GIFT FROM THE ROTARY CLUB OF BROOKLYN CEN'T'ER FOR MUSIC IN THE PAR The motion for the adoption of the foregoing resolution was duly seconded by member Kristcn Mann, a,id the motion passed unanimously. LICE ES There was a motion by Councilmember Scott and seconded by Councilmember Mann to approve the following list of licenses: AMMliSEMENT DEVICE - VENDOR Carousel International Corp. P.O. Box 307 0 D.V.M. Inc. 296 North Pascal M CHANI AL SYSTEM Air and Furnace Care 8733 Humboldt Ave. N. Air Carp., Inv, 4088 83rd Ave, N. Custom Mechanical 5973 3rd Street NE O'Brien Sh eetmeial 144 Glenwood Ave, RENTAL DWELLINGS Renewal: Lloyd J. Waldusky Georgetown Park Townhomes Michael and Barbara Nelson 6206 Brooklyn Blvd. Michael W. Haase 5328 -30 Queen Ave. N. ACR fjomes, Inc. 7110 Riverdale Road Lyle Miller 3513 47th Ave. N. F.sam El- Fakahany 1215 -17 54th Ave. N. 6/13/ � -12- The motion passed unanimously. APPROVAL OF MINUTES MAY 31 1994 SPECIAL WORK S �,�SiON There was a motion by Councilmember Scott and seconded by Councilmember Mann to approve, the minutes from the May 31,1994, special work session. The motion carried, with an abstention by Councilmember Kalligher, ORDINANCE The City Manager presented An Ordinance Amending Chapter 34 of the City Ordinances Regarding Noncommercial Opinion or Expression Signs. This ordinance was first read on May 23, 1994, published in the City's official newspaper on June 1, 1994, and is offered this evening for a public hearing and second reading. Mayor Paulson opened the public hearing at 8:45 p.m. Mr. Schwartz asked the purpose of the ordinance. He stated signs are citizens' only forms of expression. Debra Hilstrom, a member of the Planning Commission, said she has talked to Mr. Schwartz about his sign. Shc said the regulation applies to all citizens and should be enforced consistently. She said a standard is needed to protect the citizens. Mayor Paulson asked Commissioner Hilstrom to thank the Planning Commission for its work in this area: Mr. Olsen asked the dimensions of a non - political sign. Councilmember Scott answered six feet square. Mr. Olsen asked if that is only non - political. The City Attorney said this amendment provides more freedom of expression than the current code. It is an expansion of rights and an attempt to comply with the law it is an improvement regardless of whether it goes far enough. The amendment provides that during; campaign season there can be a certain number of signs with any content. Also, the one sign of six feet is in addition to other signs and can be up year 'round. Mr. Olsen asked when is campaign season is. Councilmember Scott said campaign season is 60 days before an election and 10 days after the election. Mr. Olsen asked whether, other than pornography, there are sentiments the citizens are not w illing to be exposed The City Attorney said the Constitution does not allow a, City to regulate signs based on content; the exceptions are to the extent that State Law prohibits pornographic material. Mr. Olsen said that seemed logical. He asked whether a sign directed at a politician would 6/13/ _ 13 - be slander, and whether a citizen could use negative campaign signs. The City Attorney said they would be subject to Fair Campaign Practices laws. Mr. Olsen inquired about decorative or Garage Sale signs. The City g g Attorney said Garage Sale signs are permitted as another kind under the ordinance. Religious signs fall under this non - political category. Mr. Olsen asked if that included private property. The City Attorney said he thought so. There was a motion by Councilmember KaIligher and seconded by Councilmember Scott to close the public hearing at 8 :55 p.m. The motion passed unanimously, ORDINANCE NO, 94 -11 Member Bart? Kallighur introduced the following ordinance and moved its adoption: AN ORDINANCE AMENDING CHAPTER. 34 OF THE CITY ORDINANCES REGARDING NONUUMMERCIAL OPINION OR EXPRESSION SIGNS The motion for the adoption of the foregoing ordinance was duly seconded by member Dave Rosene, and the motion passed unanimously. R ECF,SS Mayor Paulson recessed the meeting at 8:55 p.m. The City Council was reconvened at 9 :10 p.m, E LI HEARING The City Manager indicated the Council, can May 9, 1994, established the Shinglc Crock Parkway Improvement Project No. 1994 -19 and called for a public hearing. The notice of public hearing was published the City's official newspaper on June 1 and 8, 1994. The Director of Public Services said this project does include special assessments. She said notices were sent out to property owners about proposed assessments and about the public hearing. The City Engineer presented a short overview of the project. He said the total estimated cost is approximately $500,000. He said he would answer questions following the public hearing, Councilmember Kalligher, filling in for Mayor Paulson, opened the meeting for the purpose of a public hearing on proposed improvements on Shingle Creek Parkway, Improvement Project No. 1994 -19 at 9:15 p.m. She inquired if there was anyone present who wished to address the Council. There were no participants in the public hearing. 6/13/94 -14 - There was a motion by Councilmember Rosene and seconded by Councilmember Scott to close the public hearing at 9;15 p.m. The motion passed unanimously, Councilmember Rosene asked what the special assessments will be per property. The City Engineer said all the properties are commercial or City- owned. The assessment philosophy is the same as used in 1990 for similar projects. Councilmember Scott asked whether the roadway will need to be a thicker bituminous since it will have truck traffic, The City Engineer said it was originally constructed with that in mind. The proposed overlay would be thicker than in a residential area, perhaps two inches thick. Councilmember Rosene said the stretch of roadway doesn't seem too bad to him, but speeding is a problem there. He wondered if paving the road would encourage speeding. The City Engineer said a related issue will be brought to an upcoming work session. He said it is more cost - effective to grind and overlay now rather than wait until later when it will be necessary to completely reconstruct the roadway. Councilmember Scott commented some driveways into the warehouses are in need of repair due to bad potholes. She wondered if owners could be encouraged to have improvements made to the driveways. The City Engineer said tL)c City will be, replacing the worst driveway aprons which have damage due to poor drainag ;;. He added it would be cost - effective for the property owners to use the contractors for driveway improvements while they are on the sitq Councilmember Kalligher asked when the project will start and end. The City Engineer said it must be submitted for State Aid approval and will probably be back in August. Once construction starts, it will be a three- to four -week process. Councilmember Rosene asked whether State Aid funds earmarked for Humboldt Avenue might end up on this project. The City Engineer said the City can spend its construction allocation on any part of the State Aid System; whatever isn't spent carves over. Councilmember Rosene stated he had thought maybe it could be said the City used the money. y RESOLUTION NO-94-121 Member Dave Rosene introduced the following resolution and moved its adoption: RESOLUTION ORDERING IMPROVEMENT PROTECT NO. 1994 -19, SHINGLE CREEK PARKWAY OVERLAY, FREEWAY BOULEVARD TO 69TH AVENUE NORTH, APPROVING PLANS AND SPECIFICATIONS, AND AUTHORIZING ADVERTISEMENT FOR BIDS 6/13/94 -15 _ I The motion for the adoption of the foregoing resolution was duly seconded by member Celia Scott, and the motion passed unanimously. RRE5 ENTATION S The Finance Director gtatcd the City Charter calls for this annual report. He thanked Thn Johnson for writing the report, and the Council and Staff for its cooperation. He introduced Cliff Hoffman of Deloitte and Touchc, who performed the audit. Mr. Hoffman presented the Annual Financial Report. He said the City's financial condition has significantly improved over the past year; it was the best year the City has ever had. He said the practiCe of charging for services is very helpful, He said public safety is the biggest expenditure. He mentioned the CORE report results. The volunteer fire department saves the City over $1 million per year, Councilmember Rosene asked whether that means the taxpayer only pays one - fourth of the bill. Mr. Hoffman said that is true on a $100,000 home. Mr. Hoffman said the fund balance is adequate but not excessive, He said the City's debt is very little; it is debt -free to the average citizen. He referred specifically to some items in the Annual Report. Mr. Hoffman reviewed the recommendations in the Management Letter. Councilmember Rosene expressed happiness with the report. He asked why Moody's doesn't give the City an AA rating. Mr. Hoffman said it is a "snob factor" rating, based on home values and community properties. He said it is not fair but "the way it is." Mayor Paulson thanked Mr. Hoffman and the Director of Finance for their efforts. Councilmember Rosene said the Council had discussed using an RFP for this audit but he is impressed with these recommendations. Councilmember Kalligher asked the Director of Finance whether the recommendations would be discussed at a work session, The Director of Finance affirmed they would. There was a motion by Councilmember Kalli g her and seconded by Councilmember Scott to accept the Annual Financial Report, The motion passed unanimously. DISCUSSION ITEMS REPORT ON STATUS OF DEVELOPMENT a2F RFP FOR CONSULTING SERVICES The City Manager said he is aware of three firms which could do this sort of report and has been in contact with two. He has received samples and estimates of the cost are from 6/13/94 - 16- $45,000 to $70,000 ($1,000 per day plus expenses). Councilmember Rosene read from the minutes of the May 31 work session. He said actions have been in response to a series of incidents. He is in favor of hiring a firm to evaluate the department since 1992. He said he would not like it to be a general review of function but an analysis of what went wrong and how to resolve the problems. He said this seems like a different focus. The City Manager said the price lists are examples and some elements can be eliminated for this situation. He tried to find a scope of available services for the Council to choose from. Councilmember Kalligher asked if some elements were pulled, would the price would be less than $40,000. The City Manager said if would be less than $70,000. Councilmember Kalligher asked if it is a duplication; how much of the investigation will be done by the attorney already working on this, The City Attorney said the attorney's efforts will be directed only toward matters directly related to the litigation. There may be a certain amount of duplication but specification narrows it down; the attorney will be focusing on winning the lawsuit. Councilmember Kalligher asked whether the investigation will interfere with the attorney. The City Attorney said he was not sure. The lawsuit investigation could take a year; if there is a concern about management problems, it is better not to wait. Councilmember Mann said the citizens are calling for action. Steps must be taken to regain the public trust. The City Manager suggested the City Attorney work with him and the Staff to prepare a draft of issues requiring investigation; Mr, Greene should review it in regard to conflict of effort. Councilmember Scott said she agreed but each member of the Council should make a list to offer some direction of what is needed in the RFP. It is better to narrow it down now and enlarge it later, Also, some issues are urgent and some can wait. She added there was another example of lack of communication with the COP program issue. Mayor Paulson said he shares the concern and desire for answers. He said it is frustrating to spend money for a management study when money is already being spent on the lawsuit. The RFP components need to be designed. There needs to be a loop of accountability from the residents to the officers. Costs should be kept at a minimum. Councilmember Kalligher asked the City Manager when the list would be needed to create an REP. The City Manager said two to three days. Councilmember Kalligher suggested bringing it to the work session. 6/13/94 - 17 - The City Manager said the elements should be chosen then an RFP structured. There was a motion by Councilmember Kalligher and seconded by Councilmember Scott for each member to prepare a list by Tuesday, then the City Manager prepare an RFP by the next Council meeting, The motion passed unanimously, Councilmember Scott added Council packets should not be delivered to homes after 10 p.m. CITY MANAGER EVai.i ATION AND ��HEDLE PRQE5 The City Manager said the City Attorney had been asked to prepare a schedule; it is in the Council packet. Councilmember Mann said the process seems drawn out. She asked whether the last step could be at the beginning of August. The City Manager said it is possible; Step No. 4 is the longest. Councilmember Rosene reviewed the fact the Council had hoped to beat the schedule but wanted it planned conservatively. Mayor Paulson said the process is under his duties in the City Charter but is asking the Council to share the duty with him, He wants the process to move quickly but accurately as well as fairly and thoroughly. The City Manager commented he had received one more sample evaluation form after the prior work session; it is now in the packet. PRESENTATION AND APPROVAL OF PHE�E I OF THE CITY'S LOCAL STORM WATER MANZ AOEMENT PLAN The Director of Public Services commented this is a major report with substantial recommendations. She outlined the presentation, The City Engineer said a firm was hired in November 1991 to conduct Phase 1. He gave a background of requirements for the water management plan. He said this plan has nothing to do with drinking water; it is surface water. In May of 1992, a task force was formed. Bob Schunicht, a representative of Bonestroo Rosene Anderlik and Associates, which conducted the study, did an overview. He said the consideration is quantity and quality of run- off, This is a diagnostic study. The information will help the City to make wise financial decisions as opportunities arise, He said he is not recommending to complete Phase I ` In ow, but r � h h at er work that the rk be done as pro p � cts arise The Director of Public Services reviewed the recommendations of the task force. Mayor Paulson agreed the plan exceeds the ability to pay; it should also be determined how funding will he done. 6/13/94 - 18 - The Director of Public Services said she does expect to discuss this concern with h p th the City Council along with street improvements. It must be considered how much to charge a proper owner and how much the C' property City should contribute. The City . Attorney said the question is not whether to do projects but how to collect funding. - p 1 g The City Council needs to decide long -term how it is best to collect. The problem can occur if the methods arc changed mid- stream. At the outset, a policy for collecting funds should be established. Councilmember Scott asked the Director of Public Services about whether Crystal will address the problem with Upper Twin Lake. The Director of Public Services said the Commission's charge is to ensure that the two cities work together; the Watershed Commission will mediate. The City Engineer said all cities are under the came guidelines to develop plans. Councilmember Mann asked what other cities, if any, have submitted plans. The City Engineer stated Maple Grove, Crystal, and Champlin. Councilmember Mann commented Brooklyn Center should be a leader. The City Engineer agreed and said Brooklyn Center was first, then got behind. Councilmember Mann said the Council cannot approve a project without knowing from where the .funding will come. Mayor Paulson agreed with Councilmember Mann. He said it is taxpayer money. Councilmember Kalligher asked whether the topic should be put on a work session agenda. Councilmember Mann stated it should be handled as soon as possible because of opportunities in regard to this issue coming up. The City Attorney noted the plan does not commit the City Council to do anything; it is just a long -range planning step. Mayor Paulson said it is important to receive the report, but he favored taking out the word ' "approving' in the resolution. The City Manager said the City is required to have an overall plan. The City Engineer said passing this resolution does not involve a commitment to a funding philosophy or a timeline. It merely receives and approves Phase L It is necessary to receive and approve the plan so it can be forwarded to the Watershed Commission. Councilmember Kalligher asked whether, after Lt is forwarded, Staff will report back. The 6113/94 - 19- City Engineer said Staff will report; this is just a housekeeping item. Councilmember Scott said there was no reason to table the report; it is just an inventory, not a proposal of construction. A work session would be needed before Phase II. RESOLUTION NO-94- lvicmbcr Crlid Scott intrvduccd the fvllvwing resolution �Wd muvcj its aciuptiun: RESOLUTION RECEIVING AND APPROVING PHASE I OF THE CITY'S LOCAL STORM WATER MANAGEMENT PLAN The motion for the adoption of the foregoing resolution was duly seconded by member Barb Kalligher, Councilmember Mann stated there is no plan for where the money will come from; the storm damage fund does not have it. She said she was against the motion, The Director of Public Services stated that in the next six to eight weeks there will be a need to plan street improvements; then it will be time for utility rate studies. The Council needs to have issues and philosophies in place before September; it can't be put off much longer, Mayor Paulson noted he could not agree to approving the resolution. Councilmember Scott called the question. Roll call vote: Councilmember Kalligher, aye; Councilmember Rosene, aye; Councilmember Scott, aye; Mayor Paulson, nay; Councilmember Mann, nay. The motion passed, There was a motion by Councilmember Rosene and seconded by Councilmember Mann to direct staff to evaluate existing and develop or amend, as necessary, Floodplain and Shoreland Ordinances. The motion passed unanimously, There was a motion by Councilmember Scott and seconded by Councilmember Rosene to direct Staff to report to the Council regarding available and potential fund sources for future storm drainage related improvements before any projects are considered. The motion passed unanimously. Grady Boeck, 5601 Indiana Avenue North, said he agrees with Mayor Paulson and the City Attorney, He recommended the Council know what it is funding bcforc funding is considered. He said the $640 ,000 annual revenge from the storm drainage utility cannot go as far as allocated. Staff should be given the tools to project costs. There should be equality in funding projects. RECESS Mayor Paulson recessed at 11:13 p.m. The City Council reconvened at 11:29 p.m. 6/13/94 -20- CITIZEN REQ ZEST FOR DISCUSSION REGARDING NOXIOUS WEED DE ON The City Manager explained Mike Schwartz was given d nutice of weed violation as part of the review of his neighborhood. Mr. Schwartz said he has measured his lawn and has found a small area in excess of 12 inches which is going to seed. However, other lawns are also in violation of the code and did not get notices. He said he sees a reason for the ordinance but thinks the enforcement of it may be selective at times. He said he cannot do anything about the boulevard. Councilmember Mann said eleven properties were tagged; she questioned if they were all on Humboldt. The City Manager said they were not all on Humboldt; they were in the Northwest area. The City Manager said some observation is done but usually there is a complaint from a neighbor. Often, the person cited will go out and look for others to complain about. He added there are "regular" offenders. Councilmember Mann asked whether the problem is with boulevards. The City Manager said the problem is usually with the whole lawn, Mr. Schwartz said if the criteria for enforcing an ordinance is a complaint it is then open to be used as a retaliation. The City Manager said usually the people checked are people who have been a problem; there is not a full -time staff person working on this. The Director of Public Services said the tree inspector often notes it. Usually it is a routine violator or else someone has gone on a long vacation and forgotten about the lawn. So far this year there have been 54 notices (not including today's list). There are usually 150 to 200 notices per year. Mayor Paulson asked Mr. Schwartz if he has mowed his lawn. He said he has. He said the enforcement of a code violation should not be selective and inconsistent. The Director of Public Services said no records of the complaint are kept. If there were records, they would be confidential, WILLOW LANE PARK PLAYGROUND EQUIPMENT The City Manager explained there was a cooperative effort with the P &A for a park on school property. The Director of Public Services said there is no final version of the agreement; there is a hang -up between attorneys on the language of mutual indemnification, RESOLUTION NO. 94 -123 Member Celia Scott introduced the following resolution and moved its adoption; 6/13/94 - 21 - RESOLUTION AUTHORIZING EXECUTION OF WILLOW LANE PARK PLAYGROUND EQUIPMENT CONSTRUCTION AND MAINTENANCE AGREEMENT, AMENDING IMPROVEMENT PROJECT NO. 1994 -31 AND APPROPRIATING FUNDS THEREFOR The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. Councilmember Rosene said he is uncomfortable with the resolution because of the removal of tennis and basketball courts, He asked how many people were involved in the survey to take down the tennis courts. The Director of Public Services said there was an estimate of $54,000 to rehabilitate the courts. The Park and Recreation Commission recommended the removal based on usage observations and the fact there are three more sets of courts within a reasonable distance. Councilmember Rosene asked whether it would be difficult to survey the people in the area, or if it would impede progress. The Director of Public Services said the removal of the courts doesn't really affect the resolution about playground equipment. She said a survey form could be sent out. She said at neighborhood meetings citizens seemed more concerned about the basketball courts, but wanted more parking. The City Manager said there are two basketball courts by the school. Councilmember Rosene said it would be a courtesy to present the facts and ask the opinions of the neighbors. The Director of Public Services said there was still time for a survey to be done, with results available for consideration with the playground project. She hopes to have plans and specs for equipment at the neat meeting. She mentioned other work which needs to be done, such as trail work. Mayor Paulson said he would like to wait. Councilmember Kalligher suggested amending the motion to authorize the mayor to execute an agreement for $30,000 for the City's share, pending the attorney's approval. The motion passed unanimously. The Director of Public Services mentioned three other parks which need action the Park and Recreation Commission recommends moving firehouse Park to 1994, and 'West Palmer to 1995. Councilmember Scott asked about the cost difference. The Director of Public Services said it is a "wash." 6/13/94 -22- There was a motion by Councilmember Scott and seconded by Councilmember Rosene to transfer Firehouse Park to 1994. Councilmember Rosene asked how many employees there are in the Park Maintenance Division; he also discussed mowing, The City Manager said the mowing equipment is more efficient and the City does not receive many complaints regarding park maintenance. CONSIDERATION OF LIQUOR LICENSES CONSIDERATION OF AMENDMENT TO CLASS B AND SUNDAY ON -SALE INTOXICATING LIQUOR LICENSE FOR LARK►EN, INC, DBA. HOLIDAY INN, BROOKLYN CENTER The City Manager stated the Police Department recommends approval of this license, There was a motion by Councilmember Kalligher and seconded by Councilmember Scott to approve the license, The motion passed unanimously. CONSIDERATION OF APPROVAL OF CLASS B AND alINDAY ON -SALE INTOXICATING LIQUOR LICENSE FOR ITHACA RESTAURANT,--INC, DBA PAVT[.ION RESTAUR & ROOKIES 156R & GRILL WITHIN THE DAYS INN HOTEL The City Manager explained the issue. There was a motion by Councilmember Kalligh,er and seconded by Councilmember Mann to approve the license. The motion passed unanimously. ADJOURNMENT There was a motion by Councilmember Kalligher and seconded by Councilmember Scott to adjourn the meeting. The motion passed unanimously, The Brooklyn Center City Council adjourned at 11:54 p.m. Deputy City Clerk Todd Paulson, Mayor Recorded and transcribed by: Barbara Collman TimeSaver Off Site Secretarial 6/13/94 -23- Council Meeting Date 6/27/94 3 City of Brooklyn Center A Item N ber _Fa- -- Request F Council Consideration Item Description: 1994 League of Minnesota Cities Achievement Award for CO -OP Northwest Project Department Approval: .,�..w� Gerald G. Splinter, City Manager Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached No ) The League of Minnesota Cities has awarded the 1st Place 1994 Achievement Award for Cooperation and Consolidation to the CO -OP Northwest project. The award reads as follows: LEAGUE OF MINNESOTA CITIES ACHIEVEMENT AWARD 1ST PLACE COOPERATION AND CONSOLIDATION OVER 10,000 BROOKLYN CENTER, BROOKLYN PARK CRYSTAL, NEW HOPE, ROBBINSDALE 1994 Recommended City Council Action: Acknowledge and accept the 1994 League of Minnesota Cities Achievement Award. CITY OF BROOKLYN CENTER Council Meeting Date 6/27/9` Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION is ITEM DESCRIPTION: PLANNING COMMISSION ITEMS DEP ROVAL RONALD A. WARREN, PLANNING & ZONING SPECIALIST MANAGER'S REVIEW /RECOMMENDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached ) Attached are the Planning Commission minutes of June 16, 1994. • RECOMMENDED CITY COUNCIL ACTION: i e MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION JUNE 16, 1994 CALL TO ORDER The Planning Commission met in regular session and was Galled to order by Chairperson Willson at 7:31 p.m, ROLL CALL Chairperson Titn Willson, Commissioners Donald Booth, Debra Hilstrom, Dianne Reem and Ella'Sander. Also present were the Secretary to the Planning Commission Planning and Zoning Specialist Ronald Warren, Planning Commission Recording Secretary Ruth McLaurin. Commissioners Robert Mickelson and Mark Holmes had called to indicate they could not attend this evening's meeting and were therefore excused. AJ!PROVAL O MINUTES - MAY 111924 There was a motion by C:ommiWoncr Hilstrom and seconded by Commissioner Reem to approve the minutes of the May 12, 1994, Planning Commission meeting as submitted. The motion passed unanimously. CHAIRPERSON'S EXPLANATION Chairperson Willson explained the Planning Commission is an advisory body. One of the Commission's functions is to hold public hearings. In the matters concerned in these hearings, the Commission makes recommendations to the City Council. The City Council makes all final decisions in these matters. APPLICATION M. 940006 {WENDY'S INTERNATIONAL) Chairperson Willson introduced the first item of business, a request from Wendy's International requesting preliminary plat approval to combine into a single.lot the property more commonly described as 5545 Xerxes Avenue North and the vacant lot immediately to the south. The Secretary presented the staff report, used overhead transparcncies to show the location and detail (see Planning Commission Information Sheet for Application No. 94406, attached). After the Secretary presented the staff report, the Commissionors had a few questions. Commissioner Hilstrom questioned who is responsible for the private road adjacent to the 6 -16 -94 1 t property. The Secretary responded that the abutting property owners were responsible. The secretary also added that the City will review the condition of the road and approach the property owners if repairs are needed Commissioner Booth asked if the proper traffic control signs will be included in the proposed plat approval. The Secretary explained that on -site traffic control signs were part of the original approval tinder Application No. 93(X19. Additional signs, if necessary, will he part of the performance agreement for this application. Commissioner Hilstrom showed concern that the current landscaping is overgrown, and asked would that be replaced or groomed. The Secretary stated the trees along Xerxes should be thinned and referred to the applicant to respond regarding the existing shrubbery between the two lots. Chairperson Willson brought up the question of lighting in the parking lot and the surrounding property, The Secretary stated that the applicant had made no comment on adding lights so he was not certain and again referred to the applicant to respond, Chairperson Willson called for the applicant to come forward. Darren Lazan architect for the projection came forward as representative for Wendy's, Mr. Lazan stated that the landscaping would be groomed and or replaced, the trees along Xerxes would be groomed to acceptable condition. Mr. Lazan assured the Commissioners that the lighting would replaced with appropriate lighting that would be the same as the lighting on the Wendy's site. Commissioner Hilstrom asked if this parking lot will be for employees also and if it would be well lit at night. Mr. Lazan responded that employees would also use customer lot and there was appropriate lighting to cover entire lot for security. The Commissioners had no further questions at this time. PUBLIC HEARING IAPPLICATIQN No. 94006) Chairperson Willson asked for a motion to open the public hearing on the request from Wendy's International requesting preliminary plat approval to combine into a single lot the property more commonly described as 5545 Xerxes Avenue North and the vacant lot immediately to the south at 7 +53 p.m. There-was a motion by Commissioner Hilstrom and seconded by Commissioner Booth to- open the public hearing. The motion passed unanimously. Chairperson Willson asked if there was anyone present who wished to address the Commission. Ms. Marilyn Donberg inquired if the Car Wash was being remodeled. The Secretary stated yes there has been an application for building permit to complete some remodeling work. 6 -16 -94 2 Ms. Donberg stated that the poor road conditions in that area are mostly due to the water from the Car Wash during the winter freezing and then melting. Chairperson Willson called for any more questions for the applicant or for anyone else to speak at the public hearing, CLOSE PUBLIC HEARING There was a motion by Commissioner Hilstrom and seconded by Commissioner Reem to Close the public hearing at 7 :56 p.m. The motion passed unanimously. ACTION RECOMMENDING APPROVAL OF APPLICATION NO, 94906 WENDY'S INTFRNATTONAT.) There was a motion by Commissioner Hilstrom and seconded by Commissioner Booth to recommend approval of Application No. 94006 submitted by Wendy's International for preliminary plat approval to combine into a single lot the property more commonly described as 5545 Xerxes Avenue North and the vacant lot immediately to the south subject to the following conditions: 1. The final plat is subject to review and approval by the City Engineer. 2. The final plat is subject to the provisions of Chapter 15 of the City Ordinances. 3. The financial guarantee being held for Planning Commission Application No. 93909 submitted by Wendy's International shall not be released until the final plat has been approved by the City Council and filed with Hennepin County. 4. The financial guarantee being held for.Planning Commission Application No. 93009 submitted by Wendy's International shall not be released until all landscaping and parking lot imprnvemenm comprehended under the dxpanded parking lot plan have, been completed and are in compliance with the maintenance provisions of the executed performance agreement. Voting in favor: Chairperson Willson, Commissioners Booth, Hilstrom, Reem, and Sander. The motion passed unanimously. The Secretary noted that the application will be referred to the City Council at the June 27, 1994, meeting. The applicant is required to be present at the City Council meeting. If any changes or modifications are made to the plans prior to Oty Chinril rnnddnratinn, they may 11dYG LU UG U1VUJ;i1L UabA LrwLLUtr t11w 11Qj&111it6 %eV& &&AL& w Jw&A tva Avrlvrte APPLICATION NO. 94007 (MARANATHA BAPTIST CARE CENTER) Chairperson Willson introduced the next item of business, a request from Maranatha Baptist Care Center requesting site and building plan approval and an amendment to its special use permit to construct a 5,125 square foot addition to the nursing care center. 6 -16 -94 3 The Secretary presented the staff report, used overhead transparencies to show the location and detail (see Planning Commission Information Sheet for Application No. 94007, attached), The Secretary stated he had received two calls in response to the notices. One call was from Mrs. Eugene Meyer who owns the home at 6843 Toledo Avenue North (southwest comer of Toledo and 69th Avenues). The Meyer's are currently out of town and will not be able to attend the Planning Commission meeting due to other obligations. The Secretary reported Mrs. Meyer had asked him to convey her concerns to the Planning Commission and had left a telephone number in Fergus Falls where she can be reached. She said that she is opposed to the expansion of Maranatha because she does not belicvc the organization has been responsive in dealing with neighborhood concerns, Among other things, she is concerned about noise and ether activities that she considers detrimental to her property. She cites the following: 1. Garbage is being collected at 5 :30 am. and is disturbing. 2. Noise from employees dumping garbage in the trash containers late at night is also disturbing. 3. Noise from delivery trucks. 4. Noise from employees during shift change. 5. Littering problems since Maranatha has a no smoking on the property policy. 6. Water problems due to Maranatha building up their parking lot by the entrance. 7. Lack of maintenance on the screen fence between the residents property and Maranatha Care Center, The Secretary reported he also received a call from Ms. Sandy Christenson of 6803 Toledo who would not be able to attend the Planning Commission's meeting due to other obligations, stating a concern that the proposed trees which border her property would shade her garden and should be moved back from the fence,,. Commissioner Sander question the Secretary if the mature growth width of Spruce trees to be planted are taken into consideration. Commissioner Hilstrom showed concern.-If the staff would be increased with this expansion. The Secretary stated that at this time the applicant is not proposing to increase the bed count and would need City approval to do so since the parking lot would have to 6 -16 -94 4 accommodate this increase. He added that it is his understanding that the staff will also not increase due to this addition, Commissioner Booth asked for clarification of where the Meyers property is located. The Secretary pointed the property out on the overhead projector. Commissioner Hilstrom raised the question, what kind of fence borders the Meyer's property and Maranatha Care Center, The Secretary was not sure but believes it to be chain link fence. Chairperson Willson requested that the applicant come forward. Mr. Jerry Mundt architect for Maranatha Care Center came forward to answer landscaping questions. The shrubs on the east were designed as screening. The trees will be 20 feet from center and will not be any closer than 8 feet from the property line. The remodeling will be affecting room sizes turning 2 bed rooms into 1 bed rooms so it will not be increasing beds. Mr. Mundt then referred questions to Ms, Eunice Ulshafer of the Administration of Maranatha Care Center. Ms. Ulshafer addressed each issue that Mrs. Meyer had voiced. The garbage vendor had already been approached about collecting at a later time and staff will be approached about late night dumping. Staff will also be approached about noise during shift change and behavior while smoking. The fence is already being repaired, Commissioner Reem questioned if the dumpster could be moved. Ms. Ulshafer stated it was not possible at this time noting the existing location near the maintenance part of the building. Commissioner Sander asked if accommodations could be made for smokers so they would not have to leave the property. Commissioner Reem questioned the responsibility of Maranatha for their employees and their behavior. Ms. Ulshafer stated she would approach the Board of Directors about accommodations for the smokers. Commissioner Reem also suggested that as a good neighbor, Maranatha should phone Mrs. Meyer to inform her of the meeting and what Maranatha is planning on doing to resolve the issues. The Secretary added that it was his understanding that Mrs. Meyer would not object to the expansion if the stated issues would be resolved. Ms. Ulshafer assured the Planning Commission that she would contact Mrs. Meyer. Chairperson Willson reiterated that the water issue needs to be investigated. The Secretary stated he would review and collaborate with the City Engineer to seek answers to thin problem. Commissioner Hilstrom requested that the fence be kept in repair regularly. 6 -16 -94 S PUBLIC HEARING (APPLICATION NO 9400 Chairperson Willson asked for a motion to open the public hearing on the request from Maranatha Baptist Care Center requesting site and building plan approval and an amendment to its special use permit to construct a 5,125 square foot addition to the nursing care center at 8 :40 p.m. There was a motion by Commissioner Hilstrom and seconded by Commissioner Booth to open the public hearing. The motion passed unanimously. Chairperson Willson asked if there was anyone present who wished to address the Commission. There was no response to the open hearing. CLOSE PUB,LIC HEARING There was a motion by Commissiuner Hilstrom wid- seconded by Commissioner Booth to close the public hearing at 8 :41 p.m. The motion passed unanimously. Commissioner Sander questioned the Secretary if 8 feet would be enough roam for the maturity of the Spruce trees. The Secretary stated with grooming the trees should stay within the boundary of the property. Commim. ioner Sander felt 9 or 10 feet would W more appropriate. Mr. Jerry Mundt then stated tlhcy would move tho trees to 10 feet from thre property line, Commissioner Hilstrom questioned if the shrubs near the dumpster were actually screening the dumpster. Mr. Mundt stated that the shrubs were quite thick, ACTION RECQMMENDING APPROVAL QF APPLICATION NO 94007 MARANA R There was a motion by Commissioner Sander and seconded by Commissioner Hilstrom to recommend approval of Application No. 94007 submitted by Maranatha Baptist Care Center requesting site and building plan approval and an amendment to its special use permit to construct a 5,125 square foot addition to the nursing care center subject to the following conditions: 1. Building plans are subject to review and approval by the building official with respect to applicable codes prior to the issuance of permits. 2. A site performance agreement and supporting financial guarantee shall be submitted prior to the issuance of permits to assure completion of all approved site improvements. 3. Any outside trash disposal facilities and . roof top mechanical equipment shall be appropriately screened from view. 6 -16 -94 6 4. The building is to be equipped with an automatic fire extinguishing system to meet NFPA standards and shall be connected to the central monitoring device in accordance with Chapter 5 of the City Ordinances. 5. Plan approval is exclusive of all signery which is subject to Chapter 34 of the City Ordinances, 6. A proof of parking agreement acknowledging the need to install up to 66 parking spaces on the site shall be executed and filed with the title to the property prior to the ibb utuiuG o Ll 1G building ponu1L5 Cut t llls V1ujuuj, 7. A special use permit is granted to the applicant for the expansion of a nursing care facility. Any expansion or alteration of this use shall require an amendment to this special use permit, 8. The special use permit is subject to all applicable codes, ordinances and regulations, any violation thereof could be grounds for revocation. Voting in favor: Chairperson Willson, Commissioners Booth, Hilstrom, Reem, and Sander. The motion passed unanimously, The Secretary noted that the application will be referred to the City Council at the June 27, 1994, meeting, The applicant is required to be present at the City Council meeting. If any changes or modifications arc made. to the plans prior to City Council consideration, they may have to be brought back before the Planning Commission for review. OTHER BUSINESS NORMAST TRANSPORTATION CO RRIDOR TASK FORCE Chairperson 'Willson reviewed the Northeast Transportation Corridor Task Force membership and summarized discussion from their recent meeting. There was some discussion among the Uommissioners concerning 85th and Humboldt and access to Highway 252. Discussion also took place regarding 73rd Avenue and Willow Lane. ACCESSORY BUILI ADDITION The Secretary brought forth an issue about a resident's request at 5601 Lyndale. The resident, who is an owner of a 4 plex and homesteads one unit, wishes to add one more garage stall to an existing 4 stall garage. The Secretary inquired about waving the site and building plan reviewal prwgss and just require a homeowner to obtain a building permit with its th reg Secret to r City to Sul The Secret Hated that �t would he of no bene require the resident to fulfill the site and building review requirements since it would be cost prohibited and a building permit would cover the City's concerns. The Commissioner's consensus was to not require a formal site and building plan review. 6 -16 -94 7 c OPINION SIGN Further discussion was made about the recent U.S. Supreme Court decision which does not limit signs on residential property and the current litigation in New Brighton. BUILDING PERMIT EXPIRATION Commissioner Sander brought up a question about building permits and if a time frame exists before they expire. The Secretary stated that the resident has 180 days which can be extended provided work is being done. Commissioner Sander stated she would like to see a time frame. The Secretary reviewed issues relating to why some projects continue for an extended period of time (health problems, loss of job, inadequate funding, etc.). He felt there were too many circumstances that would prohibit limiting time, in addition to the fact that the 180 day period is part of the State Building Code. 63RD AVENUE GAS STATION Commissioner Reem questioned the Secretary about the gas station vn 63rd Avenue since she cited someone selling strawberries in the parking lot. The Secretary stated administrative permits have been issued for selling various items. ADJOURNMENT There was a motion by Commissioner Hilstrom and seconded by Commissioner Booth to adjourn the meeting of the Planning Commission. The motion passed unanimously. The Planning Commission adjourned at 9,20 p.m. Chairperson Recorded and transcribed by: Ruth Mc,Laurin TimeSaver Off Site Secretarial 6 -16 -94 8 Council Meeting Date 6-27 -% 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: Planning Commission Application No. 94006 submitted by Wendy's International. Department Approval: Ronald A. Warren, Planning and Zoning Specialist Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached _) Planning Commission Application No. 94006 submitted by Wendy's International, Inc. is request for preliminary plat approval to combine into a single lot the property at 5545 Xerxes Avenue North and the vacant lot immediately to the south. This application was considered by the Planning Commission at its June 16, 1994 meeting. Attached are minutes and information sheets from that meeting, a map • of the area, and various plans relating to the proposed preliminary plat. Recommended City Council Action: This appplication was recommended for approval by the Planning Commission at its June 16, 1994 meeting subject to conditions of approval. • property. The Secretary responded that the abutting property owners were responsible. The Secretary also added that the City will review the condition of the road and approach the property owners if repairs are needed. Commissioner Booth asked if the proper traffic control signs will be included in the proposed plat approval. The Secretary explained that on -site traffic control signs were part of the original approval under Application No. 9,1009. Additional signs, if necessary, will be part of the performance agreement for this application. Commissioner Hilstrom showed concern that the current landscaping is overgrown, and asked would that be replaced or groomed. The Secretary stated the trees along Xerxes should be thinned and referred to the applicant to respond regarding the existing shrubbery between the two lots. Chairperson Willson brought up the question of lighting in the parking lot and the surrounding property, The Secretary stated that the applicant had made no comment on adding lights so he was not certain and again referred to the applicant to respond, Chairperson Willson called for the applicant to come forward. Darren Lazan architect for the projection came forward as representative for Wendy's. Mr. Lazan stated that the landscaping would be groomed and or replaced, the trees along Xerxes would be groomed to acceptable condition. Mr. Lazan assured the Commissioners that the lighting would replaced with appropriate lighting that would be the same as the lighting on the Wendy's site, Commissioner Hilstrom asked if this parking lot will be for employees also and if it would be well lit at night. Mr. Lazan responded that employees would also use customer lot and there was appropriate lighting to cover entire lot for security. The Commissioners had no further questions at this time. PUBLIC HEARING ( A APPLICATIQN NQ 94006) Chairperson Willson asked for a motion to open the public hearing on the request from Wendy's International requesting preliminary plat approval to combine into a single lot the property more commonly described as 5545 Xerxes Avenue North and the vacant lot immediately to the south at 7 ;53 p,m. There was a motion by Commissioner Hilstrom and seconded by Commissioner Booth to open the public hearing. The motion passed unanimously, Chairperson Willson asked if there was anyone present: who wished to ' address the Commission. Ms. Marilyn Donberg inquired if the Car Wash was being remodeled. The Secretary stated yes there has teen an application fc•r building permit to complete some remodeling work. 6 -16 -94 2 Ms. Donberg stated that the poor road conditions in that area are mostly due to the water from the Car Wash during the winter freezing and then melting, Chairperson Willson called for any more questions for the applicant or for anyone else to speak at the public hearing, CLOSE PUBLIC H1~.ARING Thcrc was a motion by Commissioner Hilstrom and seconded by Commissioner Reem to close the public hearing at 7,56 p.m. The motion passed unanimously. ACTION RECOMMENDING APPROVAL OF APPLICATION NO 94006 WENDY'S INTFRNA'Mo NAT. There was a motion by Commissioner Hilstrom and seconded by Commissioner Booth to recommend approval of Application No. 94006 submitted by Wendy's International for preliminary plat approval to combine into a single lot the property more commonly descn'bed as 5545 Xerxes Avenue North and the vacant lot immediately to the south subject to the following conditions; 1. The final plat is subject to review and approval by the City Engineer. 2. The final plat is subject to the provisions of Chapter 15 of the City Ordinances. I The financial guarantee being held for Planning Commission Application No. 93009 submitted by Wendy's International shall not be released until the final plat has been approved by the City Council and filed with Hennepin County. 4. The financial arant ee bein held for Planning o 1� g Commission Application No. 93009 submitted by Wendy's International shall not be released unti P all landscaping and parking lot improvements comprehended under the expanded parking Iot plant bue been completed and are in compliance with the maintenance provisions of the executed performance agreement. Voting in favor. Chairperson Willson, Commissioners Booth, Hilstrom, Reem, and Sander. The motion passed unanimously. The Secretary noted that the application will be referred to the City Council at the June 27, 1994, meeting. The applicant is required to be present at the Ciry Council meeting. If any changes or modifications are made to the plans prier to City Cnimnil rnnsidaratinn, they may Ilayu LLJ UG Ulvugut U(WA UbLun., 111V 11A1i111316 %.M+uAL41" 4.L iva avTlvtt, APPLICATION NO 94007 LMARANATHA BAPTIST CARE CEN'T'ER) Chairperson Willson introduced the next item of business, a request from Maranatha Baptist Care Center requesting site and building p lan ap and amendment to its s p ecial use an ame q g F PP P permit to construct a 5,125 square foot � addition to the nursing care center. 6 -16 -94 3 Planning Commission Information Sheet Application No. 94006 Applicant: Wendy's International Location: Southwest quadrant of 56th and Xerxes Avenues North Request: Preliminary Plat The applicant is seeking Preliminary Plat approval to combine into a single lot the existing Wendy's restaurant site located at 5545 Xerxes Avenue North and the former off -site accessory parking lot located to the south. The two lots, once combined, would create a 1.219 acre parcel for use by Wendy's restaurant. The properties in question are zoned C -2 (Commerce) and are bounded on the north by 56th Avenue; on the east by Xerxes Avenue; on the south by the McDonald's restaurant site; and on the west by a private, non -public roadway serving businesses in the area. The Investor's Bank/Men's Warehouse property and Taco Bell are located to the west of this non - public roadway. The current legal description of the properties is Tract L, RLS 1419 ( Wendy's) and Tract K, RLS 1419 (off -site parking lot). The new legal description is proposed to be Lot 1, Block 1, Wendy's Brooklyn Center Addition. Tract L is .875 acres and Tract K is .344 acres, totaling a 1.219 acre site. The Wendy's restaurant plan and special use permit were approved by the City Council on August 9, 1993, under Planning Commission Application No. 93009. Construction began last fall and the restaurant is open for business. The landscaping and the final parking lot overlay on the site are yet to be completed. The parking lot to the south (Tract K, RLS 1419) was an off -site accessory parking area for the former Green Mill restaurant which was located where Investor's Bank and the Men's Warehouse is now. When that site was redeveloped a few years ago, sufficient on -site parking was provided to meet the parking requirements for these establishments. The off -site lot was no longer necessary to meet required parking and, therefore, allowed to be sold for another use. Wendy's has acquired the property and proposes to connect this lot with its parking lot for use by their customers. This will add 24 parking stalls to the Wendy's site (NOTE - Four parking stalls will be lost from the existing Wendy's site while 28 stalls will be added from the adjacent lot for a net gain of 24 parking stalls). Connection of the parking lots will be made southeasterly of the existing Wendy's restaurant building. Some modifications to the existing curb and gutter will need to be made in this location as well as at the northwest corner of the attached parking lot where two parking stalls will be eliminated and curb and gutter added. Once the two lots are connected, an overlay of the entire parking lot will be accomplished. We have requested Wendy's to provide us with a landscape analysis and plan for the combined lots. The approved landscape plan for Wendy's had a point value in excess of 250 landscape points. The landscape point requirement for such a use between zero and two Planning Commission Information Sheet acres is 80 points. The combined site is 1.219 acres, so the required number of points for the expanded site is still 80 points. Their inventory shows four trees in the Xerxes Avenue green strip, three trees in the area south of the parking lot and a tree to the north of the access to the rivate road. A new Norway Maple tree will be supplied south of this access P Y P PP drive. No new access to Xerxes is being requested, nor would one be approved. Circulation around the site will be essentially the same as with the existing Wendy's plan. The City Engineer has reviewed the plan and sees no significant problems. Because the combined site is below five acres, no watershed review is required. Wendy's has requested to go ahead with the parking lot connection prior to filing the final plat for this property. This is so they can proceed with their landscaping and a final parking lot overlay over both parking areas. We have no objection to this. It should be noted that the zoning ordinance at Section 35 -540 requires contiguous parcels under common ownership and serving a common use to be combined into a single parcel through platting or registered land survey. This is the reason for this application. There is a public hearing scheduled for this preliminary plat application. Notices of the Commission's hearing appeared in the Brooklyn Center Sun Post. Recommendation The preliminary plat appears to be in order and is recommended for approval subject to the following conditions: 1. The final plat is subject to review and approval by the City Engineer. 2. The final plat is subject to the provisions of Chapter 15 of the City Ordinances. 3, The financial guarantee being held for Planning Commission Application No. 93009 submitted by Wendy's International shall not be released until the final plat has been approved by the City Council and filed with Hennepin County. 4. 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"s_�� � I Council Meeting Date 6 -27 -94 City of Brooklyn Center Agenda Item Numbe Request For Council Consideration • Item Description: Planning Commission Application No. 94007 submitted by Maranatha Baptist Care Center Department Approval: t000 Ronald A. Warren, Planning and Zoning Specialist Manager's Review /Recommendation:� No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached _) Planning Commission Application No. 94007 submitted by Maranatha Baptist Care Center is a request for site and building plan approval and an amendment to its special use permit to construct a 5,125 square foot addition to the nursing care center. This application was considered by the Planning Commission at it June 16, 1994 meeting. Attached are minutes and information sheets from that meeting, a-map of the area, an various plans relating to the special use permit. Recommended City Council Action: This application was recommended for approval by the Planning Commission at it June 16, 1994 meeting subject to conditions of approval. • Ms. Donberg stated that the poor road conditions in that area are mostly due to the water from the Car Wash during the winter freezing and then melting. Chairperson Willson called for any more questions for the applicant or for anyone else to speak at the public hearing, CLOSE PUBLIC HEARING There was a motion by Commissioner Hilstrom and seconded by Commissioner Room to close the public hearing at 7 :56 p.m. The motion passed unanimously. AMON RECOMMENDING APPROVAL OF APPLICATION NO 94Q06 WENDY'S INTERNATIONAL) There was a motion by Commissioner Hilstrom and seconded by Commissioner Booth to recommend approval of Application No. 94006 submitted by Wendy's International for preliminary plat approval to combine into a single lot the property more commonly described as 5545 Xerxes Avenue North and the vacant lot immediately to the south subject to the following conditions: 1. The final plat is subject to review and approval by the City Engineer. 2. The final plat is subject to the provisions of Chapter 15 of the City Ordinances. 3. The financial guarantee being held for Planning Commission Application No. 93009 submitted by Wendy's International shall not be released until the final plat has been approved by the City Council and filed with Hennepin County. 4. The financial guarantee being held for Planning Commission Application No. 93009 submitted by Wendy's International shall not be released until all landscaping and parking lot improvements comprehended under the expanded parking lot plan have been completed and are in compliance with the maintenance provisions of the executed performance agreement. Voting in favor: Chairperson Willson, Commissioners Booth, Hilstrom, Reem, and Sander. The motion passed unanimously. The Secretary noted that the application will be referred to the City Council at the June 27, 1994, meeting. The applicant is required to be present at the City Council meeting. If any changes or modificatipns are made to the plans prior to Oity Crnmril rnnsidrratinn, they may ilayu LU UG ULVUgut Uavt ll1.LU1L L11V t1aL1111i76 %ru+uJU1JQ1Vi1 tva AWT1VTTe APPLICATION NO 94007 (MARANATHA BAPTIST CARE CENTER) Chairperson Willson introduced the next item of business, a request from Maranatha Baptist Care Center requesting site and building plan approval and an amendment to its special use permit to construct a 5,125 square foot addition to the nursing care center. 6 -16 -94 3 The Secretary presented the staff report, used overhead transparencies to show the location and detail (see Planning Gommission Information Sheet for Application No. 94007, attached). The Secretary stated he had received two calls in response to the notices. One call was from Mrs. Eugene Meyer who owns the home at 6843 Toledo Avenue North (southwest corner of Toledo and 69th Avenues). The Meyer's are currently out of town and will not be able to attend the Planning Commission meeting due to other obligations. The Secretary reported Mrs, Meyer had asked him to convey her concerns to the Planning Commission and had left a telephone number in Fergus Falls where she can be reached. She said that she is opposed to the expansion of Maranatha because she does not believe the organization has been responsive in dealing with neighborhood concerns, Among other things, she is concerned about noise and other activities that she considers detrimental to her property. She cites the following: 1. Garbage is being collected at 5:30 am. and is disturbing. 2. Noise from employees dumping garbage in the trash containers late at night is also disturbing. 3. Noise from delivery trucks. 4. Noise from employees during shift change. 5. Littering problems since Maranatha has a no smoking on the property policy. 6. Water problems due to Maranatha building up their parking lot by the entrance. 7. Lack of maintenance on the screen fence between the residents property and Maranatha Care Center. The Secretary reported he also received a call from Ms. Sandy Christenson of 6803 Toledo who would not be able to attend the Planning Commission's meeting due to other obligations, stating a concern that the proposed trees which border her property would shade her garden and should be moved back from the fence, - Commissioner Sander question the Secretary if the mature growth width of Spruce trees to be planted are taken into consideration. Commissioner Hilstrom showed concern if the staff would be increased with this expansion. The Secretary stated that at this time the applicant is not proposing to increase the bed count and would need City approval to do so since the parking lot would have to 6 -16 -94 4 accommodate this increase. He added that it is his understanding that the staff will also not increase due to this addition. Commissioner Booth asked for clarification of where the Meyer's roe is located. Y P property The Secretary pointed the property out on the overhead projector, Commissioner Hilstrom raised the question, what kind of fence borders the Meyer's property and Maranatha Caro Center, The Secretary was not sure but believes it to be chain link fence. Chairperson Willson requested that the applicant come forward. Mr. Jerry Mundt architect for Maranatha Care Center came forward to answer landscaping questions. The shrubs on the east were designed as screening. The trees will be ZO feet from center and wiff not be any closer than 8 feet from the property line. The remodeling will be affecting room sizes turning Z bed rooms into 1 bed rooms so it will not be. increasing beds. Mr. Mundt then referred questions to Ms. Eunice Ulshafer of the Administration of Maranatha Care Center. Ms. Ulshafer addressed each issue that Mrs. Meyer had voiced. The garbage vendor had already been approached about collecting at a later time and staff will be approached about late night dumping. Staff will also be approached about noise during shift change and behavior while smoking. The fence is already being repaired. Commissioner Reem questioned if the dumpster could be moved. Ms. Ulshafer stated it was not possible at this time noting the existing location near the maintenance pan of the building, Commissioner Sander asked if accommodations could be made for smokers so they would not have to leave the property. Commissioner Reem questioned the responsibility of Maranatha for their employees and their behavior. Ms. Ulshafer stated she would approach the Board of Directors about accommodations for the smokers. Commissioner Reem also suggested that as a good neighbor, Maranatha should phone Mrs. Meyer to inform her of the meeting and what Maranatha is planning on doing to resolve the issues. The Secretary added that it was his understanding that Mrs. Meyer would not object to the expansion if the stated issues would be resolved. Ms. Ulshafer assured the Planning Commission that she would contact Mrs. Meyer. Chairperson Willson reiterated that the water issue needs to be investigated. The Secretary stated he would review and collaborate with the City Engineer to seek answers to this problem. Commissioner Hilstrom requested that the fence be kept in repair regularly. 6 -16 -94 5 MBLIC HEARING APPLI ATI N NO, 94 Chairperson Willson asked for a motion to open the public hearing on the request from Maranatha Baptist Care Center requesting site and building plan a roval and an amcndment to its special use permit to construct a 5,125 square foot dition to the nursing care center at 8 :40 p.m. There was a motion by Commissioner Hilstrom and seconded by Commissioner Booth to open the public hearing. The motion passed unanimously. Chairperson Willson asked if there was anyone present who wished to address the Commission. There was no response to the open hearing, CLOSE PUBLIC HEARING ' There was a motion by Cc)mmissionor Hilstrom wid seconded by Commissioner Booth to close the public hearing at 8:41 p.m. The motion passed unanimously. Commissioner Sander questioned the Secretary if 8 feet would be enough room for the maturity of the Spruce trees. The Secretary stated with grooming the trees should stay within the boundary of the property. Commissioner Sander felt 9 or 10 feet would be more appropriate. Mr. Jerry Mundt then stated they would movc the trues to 10 feet frQm the property line, Commissioner Hilstrom questioned if the shrubs near the dumpster were actually screening M the dumpster. Mr. Mundt stated that the shrubs were quite thick, ACTION RECOMMENDING APPROVAL OF APPLICATION NQ 94007 (MARANATHA BAPTIST CAE CENTER) There was a motion by Commissioner Sander and seconded by Commissioner Hilstrom to recommend approval of Application No. 94007 submitted by Maranatha Baptist Care Center requesting site and building plan approval and an amcndment to its special use permit to construct a 5,125 square foot addition to the nursing care center subject to the following conditions: 1. Building plans are subject to review and approval by the building official with respect to applicable codes prior to the issuance of permits. 2. A site performance agreement and supporting financial guarantee shall be submitted prior to the issuance of permits to assure completion of all approved site improvements. I Any outside trash disposal facilities and roof top mechanical equipment shall be appropriately screened from view. i 6 -16 -94 6 4. The building is to be equipped with an automatic fire extinguishing system to meet NFPA standards and shall he connected to the central monitoring device in accordance with Chapter 5 of the City Ordinances. 5. Plan approval is exclusive of all signery which is subject to Chapter 34 of the City Ordinances. 6. A proof of parking agreement acknowledging the need to install up to 66 parking spaces on the site shall be executed and filed with the title to the property prior to the imutuicc of llie building pvriuit5 fur this prujcui. 7. A special use permit is granted to the applicant for the expansion of a nursing care facility. Any expansion or alteration of this use shall require an amendment to this special use permit. 8. The special use permit is subject to all applicable codes, ordinances and regulations, any violation thereof could be grounds for revocation. Voting in favor: Chairperson Willson, Commissioners Booth, Hilstrom, Reem, and Sander. The motion passed unanimously, The Secretary noted that the application will be referred to the City Council at the June 27, 1994, meeting, The applicant is required to be present at the City Council meeting. If any changes or modifications are made to the plans prior to City Council consideration, they may have to be brought back before the Planning Commission for review. OTHER BUSINESS NORTHEAST TRANSPORTATION CORRIDOR TASK FORCE Chairperson Willson reviewed the Northeast 'Transportation Corridor Task Force membership and summarized discussion from their recent meeting. There was some discussion among the commissioners concerning 85th and Humboldt and access to Highway 252. Discussion also took place regarding 73rd Avenue and Willow Lane. ACCESSORY BUILDING ADDITION The Secretary brought forth an issue about a resident's request at 5601 Lyndale. The resident, who is an owner of a 4 plex and homesteads one unit, wishes to add one more garage stall to an existing 4 stall garage. The Secretary inquired about waving the site and building plan rcvicwal process and just require a homeowner to obtain a building permit with its regulations. The Secretary noted that it would he of no he.nnfit to the City to require the resident to fulfill the site and building review requirements since it would be cost prohibited and a building permit would cover the City's concerns. The Commissioner's consensus was to not require a formal site and building plan review. 6 -16 -94 7 Plannin g Commission Information Sheet Application No. 94007 Applicant: Maranatha Baptist Care Center Location: 5401 69th Avenue North Request: Special Use Permit/Site and Building Plan Approval The applicant is seeking site and building plan approval and an amendment to its special use permit to construct a 5,125 square foot addition to the Maranatha Baptist Care Center which is located at 5401 69th Avenue North. This 114.5' by 45' addition would be to Wing II, the center wing, to the rear of the building. The property in question is zoned Rl (one family residence) and this care center is a special use in that zoning district per section 35 -310, subdivision 2g which provides for "other, non- commercial uses required for the public welfare in an Rl district, as determined by the City Council." The subject site is located on the south side of 69th Avenue, westerly of Toledo Avenue North. It is bounded on the north by 69th Avenue; on the east by single family homes facing Toledo Avenue; on the south by single family homes facing 68th Avenue North; and on the west by R6 zoned property which is the site of Maranatha Place, a four story senior housing complex operated'by Maranatha. 0 ACCESS /PARKING The plan calls for no change with respect to access to and parking for this site. Access is gained from 69th Avenue leading to a parking lot at the northeast portion of the property which is connected to a drive lane leading to the main entrance for the care center. Access can also be gained to this same point from a driveway opening on 69th Avenue serving Maranatha Place which also leads to the care center entrance. Approximately 53 parking spaces are located on the care center property, with space available to add more parking if necessary. Also, the care center can utilize some available space at Maranatha Place should the need arise. The parking formula for a nursing or rest home is one space for every four beds, plus one space for each staff doctor and one space for every two employees at the maximum shift. The expansion does not contemplate any additional beds, only the rearrangement of units in the facility to better accommodate patients needs and ADA requirements. In fact, it is my understanding, that there is a moratorium on adding more nursing home beds in the metropolitan area. This facility has 106 beds and n as records, has 14 f r' visitin the facility and 50 employees em to based o past staff doctor' g y p y at the maximum shift. This would amount to a parking requirement of 66 (26.5 + 14 + 25 = 65.5) it is not believed that this 13 parking stall deficiency is a problem because of available space to construct additional parking on the site and the arrangement with neighboring Maranatha Place. However, the execution and filing of a proof of parking agreement between Maranatha and the City might be appropriate should parking become an issue in the future. GRADING /DRAINAGE/UTILITIES No changes to the plans involving these matters are proposed. Because the site is less than 5 acres, no watershed review is required. Planning Commission Information Sheet LANDSCAPING The applicant has submitted a landscape plan in response to the landscape point system used by the Commission to evaluate such plans. This 3.77 acre site requires 342 landscape points. Existing landscaping is shown on the plan and amounts to 148.5 points based on 9 shade trees, 5 decorative trees, 2 coniferous trees and 78 shrubs. New plantings amount to 194 points for a total of 342.5 landscape points. New plantings include 8 Maple trees, 3 to the rear of the property, 1 on either side of the new addition, one west of Wing III, and one on either side of the entrance drive in the 69th Avenue greenstrip. Eighteen Spruce trees, 5' high, are to be added to the site. Eight will be located along the rear property line, 20' on center, two at the southeast corner of the site, 6 to the east of Wing I also planted 20' on center and two near the front building entrance across the drive lane. Twelve Juniper shrubs are proposed. Five are to be located along the edge of the patio between Wing I and Wing II; two to the south of Wing I; and five near the sign near the front of the building. BUILDING The exterior of the building addition is to be concrete and masonry. Stack bond, painted concrete block with a decorator top course will be provided to match the existing building. Windows are to be aluminum, thermal break units to match the existing. The building addition is to be fire sprinklered. LIGHTING /TRASH No new exterior lighting is proposed and the dumpster is to remain in its current location which is not shown on the plan but is in the northeasterly portion of the site. Special Use Permit Standards A public hearing is scheduled for the special use permit and notices of the Planning Commission's consideration have been sent. Attached for the Commission's review is a copy of section 35 -220 subdivision 2 which contains the five standards for special use permits. As of the writing of the this report, I have received one call in response to the notices that from Mrs. Eugene Meyer who owns the home at 6843 Toledo - Avenue North (southwest corner of Toledo and 69th Avenues). The Meyer's are currently out of town and will not be able to attend the Planning Commission meeting due to other obligations. Mrs. Meyer has asked me to convey her concerns to the Planning Commission and has left a telephone number in Fergus Falls where she can be reached. ,She said that she is opposed to the expansion of Maranatha because she does not believe the organization has been responsive in dealing with neighborhood concerns. Among other things she is concerned about noise and other activities that she considers- detrimental to her property. She cites the following: -2- Planning Commission Information Sheet 1. Garbage is being collected at 5:30 a.m. and is disturbing. She claimed Maranatha Care Center had informed her that garbage would not be collected until after 7:00 a.m. (Note - section 7 -102 subdivision 4 of the City ordinances requires collection in residential zones to be conducted between 6:30 a.m. and 8:30 p.m.) 2. Noise from employees dumping garbage in the trash containers late at night is also disturbing. She suggests that the dumpster be moved to another location on the property. 3. Noise from delivery trucks making early morning deliveries with air brakes and back up indicators is also disturbing to neighbors. 4. Mrs. Meyer's cited noise from employees during shift change at night. The noise is from cars, loud mufflers, door slamming, etc. 5. She also cited littering problems noting that Maranatha has a no smoking on the property policy. She indicated employees smoke on the side walk by the Meyer's property and often discard cigarette butts, styrofoam cups and pop cans in the Meyer's yard and on the boulevard area adjacent to the sidewalk. Mrs. Meyer noted that she and her husband try to maintain their property and are constantly picking up this type of material from their property and from the boulevard portion of the right -of -way which they are expected to maintain. 6. She cited water problems on their property because she claims, over the years, Maranatha has built up their parking lot by the entrance so much so that it causes standing water on their property. 7. She claims that over the years there has been a lack of maintenance on the screen fence between the residents property and Maranatha Care Center. She said it has become dilapidated and needs better maintenance. These comments and concerns will be passed along to representatives of Maranatha Care Center for their response on Thursday evening. RECOMMENDATION If the Commission is satisfied that the standards for special use permit are met, we would recommend approval of the application subject to at least the following conditions: 1. Building plans are subject to review and approval by the building official with respect, to applicable codes prior to the issuance of permits. -3- Planning Commission Information Sheet 2. A site performance agreement and supporting financial guarantee shall be submitted prior to the issuance of permits to assure completion of all approved site improvements. 3. Any outside trash disposal facilities and roof top mechanical equipment shall be appropriately screened from view. 4. The building is to be equipped with an automatic fire extinguishing system to meet NFPA standards and shall be connected to a central monitoring device in accordance with Chapter 5 of the City Ordinances. 5. Plan approval is exclusive of all signery which is subject to Chapter 34 of the City Ordinances. 6. A proof of parking agreement acknowledging the need to install up 66 parking spaces on the site shall be executed and filed with the title to the property prior to the issuance of the building permits for this project. 7. A special use permit is granted to the applicant for the expansion of a nursing care facility. Any expansion or alteration of this use shall require an amendment to this special use permit. 8. 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Number io Request For Council Consideration Item Description: BROOKLYN BOULEVARD PLAN Department Appro : Brad G. 41 ffman, Director of Community Development Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached _) Attached is the Brooklyn Boulevard 1 y d p an. A representative of BRW will be presenting its final plan for the redevelopment of Brooklyn Boulevard. • Recommended City Council Action: Motion directing staff to draft a resolution accepting the Brooklyn Boulevard Redevelopment Plan. CITY OF BROOKLYN CENTER council Meeting Date C / , /';Z 7/ y Agenda Item Number /e REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTIONS PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION BONDS FOR STREET AND STORM WATER IMPROVEMENTS DEPT. APPROVAL: C�2 k aim Charles Hansen, Finance D' c r MANAGER'S REVIEW/RECOMMENDATION: No comments to supplement this report Comme is below /attached SU1VIrVIARY EXPLANATION: (supplemental sheets attached ) • The City has two projects underway which require the sale of bonds to successfully finance their completion. First is the Northwest Area Street Improvement for which Resolutions 94 -65 and 94 -66 were passed on March 28, 1994, ordering the improvement. This project will reconstruct streets in the northwest area and the James /Knox/ 54th Avenue area. Earlier resolutions call for the special assessment of benefited properties under Minnesota Statutes Chapter 429. The special assessments would equal 25% to 30% of the total project costs and would be collected over a 10 year period. Property taxes would be responsible for the remaining 70% to 75% of the costs. The second project is storm drainage improvements in the Northwest Area and construction of the storm water pond and park at Brooklyn Boulevard and 1694. Principal and interest payments would be made from future revenues of the Storm Drainage Fund. These will officially be two separate bond issues. By selling them at the same time, we can economize on the bond issuance cost. The two attached resolutions officially authorize the sale of the bonds and sets the sale date for July 25, 1994 at 1:00 P.M. Proposals will be opened at that time at the offices of Springsted Incorporated. Springsted will recommend an award at the City Council that night. Final approval will depend upon City Council action. Proceeds of the bond sale should be,received by the City in early September. RECOMMENDED CITY COUNCIL ACTION Adoption of the two attached resolutions. • s e Recommendations For City of Brooklyn Center, Minnesota $1,830,000 General Obligation Storm Sewer Revenue Bonds, Series 1994A $835,000 General Obligation Improvement Bonds, Series 1994B Study No.B0201 Q1 P1 SPRINGSTED Incorporated June 17, 1994 r SPRINGSTED PUBLIC FINANCE ADVISORS n 3 N A1,1 18� '-49­230 8 E ast 3- -vent P4ac S aInt on o s s 7", June 17, 1994 nle N"A" 2 2v4 2' i362 Mayor Todd Paulson Members, City Council Mr. Gerald Splinter, City Manager Mr. Charlie Hansen, Finance Director City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Re: Recommendations for the Issuance of: $1,830,000 General Obligation Storm Sewer Revenue Bonds, Series 1994A $835,000 General Obligation Improvement Bonds, Series 1994B • We respectfully request Y our consideration of our recommendations for the issuance of the above -named issues in accordance with the attached Terms of Proposals. We will discuss each issue separately, followed by a discussion of items common to both issues. $1,830,000 General Obligation Storm Sewer Revenue Bonds, Series 1994A (the "Revenue Bonds ") The Revenue Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475. The proceeds will be used to finance storm drainage improvements within the City. The composition of the Revenue Bonds is as follows: Project 94 -11 (Northwest Area) $ 555,400 Project 93 -18 (Gateway Pond /Park and Drainage Upgrades) 1,255,00 Subtotal $1,810,400 Costs of Issuance 20,295 Allowance for Discount Bidding 21,960 Less: Investment Earnings (22,655 Total Revenue Bond Issue $1,830,000 You will note the total borrowing for the storm drainage improvements has been reduced by • over $22,000 of investment earnings. It is anticipated the most of the activities related to the storm drainage improvements in 1994 will consist of land acquisition and that an estimated City of Brooklyn Center, Minnesota June 17, 1994 $725,000 of bond proceeds will not be spent until 1995 when construction of ponding areas is expected to commence. Appendix I is the recommended amortization schedule for the Revenue Bonds. The Revenue Bonds will be dated August 1, 1994 and will mature each February 1, 1996 through 2005. Columns 1 through 6 show the years and amounts of principal and estimated interest due and payable on the Revenue Bonds. As shown in Column 6, the Revenue Bonds have been structured with even annual payments of principal and interest. Column 7 shows the amount of net revenues from the City's Storm Drainage Enterprise Fund for the year ending December 31, 1993 which are available for debt service. The City anticipates a storm drainage rate increase in 1995 which is expected to further increase the annual net revenues of the Storm Drainage Enterprise Fund. The anticipated surplus of net revenues of the Storm Drainage Enterprise Fund over projected debt service requirements is shown in Column 8. Throughout the life of the Revenue Bonds, each August 1 and February 1 payment will be made from Storm Drainage Enterprise Funds generated in the year prior to the February payment date. $835,000 General Obligation Improvement Bonds, Series 1994B The Improvement Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. Proceeds will be used to finance two street improvement projects within the City. The composition of the Improvement Bonds is as follows: Project 94 -11 (Northwest Area)* $595,346 • Project 94 -01 (James /Knox) 233.216 Subtotal $828,562 Allowance for Discount Bidding 10,020 Less: Investment Earnings (3.582 Total Improvement Bond Issue $835,000 Project costs include engineering, administration, costs of issuance and contingency. Appendix II is the projection of assessment income by project. Assessments, in the principal amount of $332,100, are expected to be filed on or before November 15, 1994 for first collection in 1995. The 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 7.50 %. Our estimate of assessment income does not take into consideration any prepayments, deferments or delinquencies of assessment payments. Appendix III is the recommended debt amortization schedule and the cash flow for the Improvement Bonds. The Improvement bonds will be dated August 1, 1994 and will mature each February 1 from 1996 through 2005. Columns 1 through 6 show the years and amounts of principal and estimated interest due and payable on the Improvement Bonds. Column 7 shows the 5% overlevy requirement as set forth by State Statute. You will recall the 5% overlevy is a protection to the bondholder and to the City in the event 100% of expected special assessments and taxes are not achieved. Column 8 shows the projection of assessment income from Appendix II. Column 9 shows the net property tax levy requirements which represent the City's share of these improvement projects. Annual debt service requirements have been structured to provide approximately even annual tax levy requirements averaging $68,200. Page 2 City of Brooklyn Center, Minnesota June 17, 1994 Each August 1 interest payment will be made from first -half collections of special assessments and tax collections. Each subsequent February 1 payment of principal and interest will be made from second -half collections, together with surplus first -half collections. Common to Both Issues Allowance for Underwriter's Discount Included in the principal amount of both bond issues is a provision for discount bidding in an amount equal to 1.2% of the principal amount of the bonds issued. This discount provides the underwriters with all or part of their profit and /or working capital for purchasing the issue and permits the underwriters to reoffer the bonds at or close to a par reoffering scale. The discount is a successful marketing tool the City has used in past bond issues and we recommend its continued use here. Prepayment Option We recommend the bonds maturing on or after February 1, 2004 be callable on February 1, 2003, and any day thereafter, at a price of par and accrued interest. This call feature will permit prepayment of the Improvement Bonds should substantial prepayments of assessments be received and prepayment of the Storm Sewer Revenue Bonds should excess enterprise funds become available. The call feature also flexibility to prepay either provides the City with the e p Y Y P P Y issue should future market conditions warrant a refinancing. With the inclusion of the provision for discount bidding, this call feature should not impair the marketability of the bonds. Ratin • In order to maintain the City's current "Al" rating from Moody's Investors Service, it is necessary that an application be made to Moody's for a rating on these issues. We will provide Moody's with the necessary data upon which they will make their rating analysis and we will make the application on your behalf. The cost of the rating fee, which is expected to be approximately $4,000, has been pro -rated in the issuance costs for each individual issue. Federal Rebate - Arbitrage These issues are subject to federal arbitrage regulations. Generally speaking, all arbitrage profits (the yield difference between the earnings on the investments and the yield on the obligations) must be rebated to the U.S. Treasury. There are some exemptions to this rebate requirement which include: (i) A small issuer exemption if the bonds are for governmental purposes and the issuer reasonably expects to issue not more than $5,000,000 tax - exempt obligations during the calendar year. (ii) A six -month exemption if all of the proceeds are expended within six months of bond issuance. (iii) An 18 -month expenditure test if at least 15% of proceeds are expended within 6 months, 60% within 12 months and 100% within 18 months. (iv) A two -year expenditure test if at least 75% of the proceeds of the issue are used for construction and if 10% is expended within six months, 45% within 12 months, 75% within 18 months and 100% within two Y ears. Page 3 4 City of Brooklyn Center, Minnesota June 17, 1994 The expenditure tests of items (iii) and (iv) above are an absolute requirement, not reasonable expectations. If the City can meet either of these two expenditure requirements for its Improvement Bonds and Storm Sewer Revenue Bonds, these issues will be exempt from arbitrage rebate. Prior to the 1993 final arbitrage regulations the small issuer exemption also exempted any debt service funds from rebate requirements. The 1993 regulations changed that so only bona fide debt service funds are exempt from rebate. A bona fide debt service is defined as a fund for which there is an equal matching of revenue to debt service expense with a carry over permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. If the City receives substantial prepayments of special assessments on the Improvement Bonds, those prepayments will have to be used to either call the Improvement Bonds, if possible, or invested at a yield restricted to the yield on the Improvement Bonds. The situation is somewhat different for the Storm Sewer Revenue Bonds because the City will transfer from the Storm Sewer Enterprise Fund only the amount necessary to meet debt service expenses as they become due, and thus it is not expected to be a problem to maintain a bona fide debt service fund for the Storm Sewer Revenue Bonds. Economic Life of Financed Projects The 1993 final arbitrage regulations brought all tax - exempt issues into the calculation of "economic life." Previously this requirement was only for private activity bonds. The intent of this requirement is that the Treasury does not want bonds outstanding longer than is necessary, thus creating more tax - exempt bonds in the marketplace than are needed. The general safe harbor for assuring that bonds comply with the regulations will apply if the average maturity of the bonds does not exceed 120% of the economic life of the financed projects. Since the Improvement Bonds are being issued for street improvements which, under the Treasury guidelines have an economic life of 20 years, the average maturity of Improvement Bonds of 6.24 years is in compliance with this regulation. In regard to the Storm Sewer Revenue Bonds, the economic life of the improvements is 50 years, and therefore the Storm Sewer Revenue Bonds, which have an average maturity of 6.51 years, are also in compliance with this regulation. Federal Reimbursement Regulations The Federal Treasury has enacted reimbursement regulations to regulate issuers who wish to issue tax - exempt bonds to recover costs of prior expenditures. The reimbursement regulations require that if the issuer proposes to reimburse itself for expenses paid prior to receipt of bond proceeds, the City must have made a declaration of that intent within 60 days of the actual payment of the expense. There are exemptions for architectural and engineering fees and miscellaneous start-up costs. It is our understanding the City has taken all appropriate actions necessary to comply with federal reimbursement regulations in regards to both the Improvement Bonds and the Storm Sewer Revenue Bonds. Bank - Qualification In 1986, tax provisions enacted by the Treasury reduced the ability of banks and other financial institutions to use tax - exempt interest as an offset against other interest expense. This has made tax - exempt bonds less attractive to these financial institutions since, as bond purchasers, they do not receive the full benefit of the tax exemption. Bonds which are not bank - qualified receive higher interest rates than bonds which are bank - qualified. There is an exclusion from this provision for obligations of an issuer who will not sell more than $10,000,000 of tax - exempt • obligations in a calendar year. The City does not expect to issue more than $10,000,000 of tax - exempt bonds in 1994, and therefore these issues will be "bank qualified." Page 4 City of Brooklyn Center, Minnesota June 17, 1994 Sale Process We recommend these obligations be offered for sale on Monday, July 25, 1994, with proposals received at the offices of Springsted Incorporated at 1:00 P.M. After proposals are received, they will be verified for accuracy, tabulated and then presented to the City Council for consideration of award at 7:00 P.M. the same evening. Respectfully submitted, SPRINGSTED Incorporated rlw • Page 5 City of Brooklyn Center, Minnesota Prepared June 9,,1994 G.O. Storm Sewer Revenue Bonds, Series 1994A By SPRINGSTED Incorporated Dated: 8- 1 -1994 Mature: 2- 1 First Interest: 8- 1 -1995 Total 1993 Net Year of Year of Principal Revenue of Annual Revenue Mat. Principal Rates Interest & Interest Storm Sewer Surplus ( ( ( ( ( ( ( ( 1995 1996 110,000 4.10% 135,120 245,120 510,000 264,880 1996 1997 155 4.30% 85,570 240 510,000 269,430 1997 1998 165 4.50% 78 243,905 510,000 266,095 1998 1999 170 4.65% 71,480 241,480 510,000 268 1999 2000 180,000 4.80% 63,575 243,575 510,000 266,425 2000 2001 190,000 4.95% 54,935 244,935 510,000 265,065 2001 2002 200 5.10% 45,530 245,530 510,000 264,470 2002 2003 210 5.25% 35 245,330 510,000 264,670 2003 2004 220,000 5.35% 24,305 244,305 510,000 265,695 2004 2005 230,000 5.45% 12,535 242,535 510,000 267,465 TOTALS: 1,830 607 2,437,285 5,100,000 Bond Years: 11 Annual Interest: 607,285 Avg. Maturity: 6.51 Plus Discount: 21,960 Avg. Annual Rate: 5.099% Net Interest: 629,245 T.I.C. Rate: 5.293% N.I.C. Rate: 5.283% Interest rates are estimates; changes may cause significant alterations of this schedule. v The actual underwriter's discount bid may also vary. m cQ Z m rn X r a • 0 City of Brooklyn Center, Minnesota Prepared June 9, 1994 G.O. Improvement Bonds, Series 1994B By SPRINGSTED Incorporated PROJECTED ASSESSMENT INCOME Project 94 -11 (Norwest Area) Project 94 -01 (James /Knox) - - - - T 0 T A L T - - - - Filing Date: 11/15/1994 Filing Date: 11%15/1994 Filing Collect Interest Interest Year Year Principal @ 7.500% Total Principal @ 7.500% Total Principal Interest Total 1994 1995 23,755 20,110a 43,865 9,455 8,004b 17,459 33,210 28,114 61,324_ 1995 1996 23,755 16 39,790 9,455 6,382 15,837 33,210 22,417 55,627 1996 1997 23 14 38,008 9,455 5,673 15,128 33,210 19,926 53,136 1997 1998 23 12,471 36,226 9 4,964 14,419 33 17,435 50,645 1998 1999 23,755 10,690 34,445 9,455 4,255 13,710 33 14 48,155 1999 2000 23,755 8 32,663 9,455 3,546 13,001 33 12,454 45,664 2000 2001 23,755 7,127 30,882 9,455 2,837 12,292 33,210 9,964 43,174 2001 2002 23,755 5,345 29000 9,455 2,127 11,582 33,210 7072 40,682 2002 2003 23,755 3,563 27,318 9,455 1,418 10 33,210 4,981 38,191 2003 2004 23,755 1,782 25,537 9,455 709 10,164 33,210 2,491 35,701 TOTALS 237,550 100,284 337,834 94,550 39,915 134,465 332 140099 472,299 a) Includes interest from filing b) Includes interest from filing date to 12/31/1995. date to 12/31/1995. A . M �n v m )C v • 0 � City of Brooklyn Center, Minnesota Prepared June 9, 1994 G.O. Improvement Bonds, Series 1994B By SPRINGSTED Incorporated Dated: 8- 1 -1994 Mature: 2- 1 First Interest: 8- 1 -1995 Total Projected Total Year of Year of Principal 105% Assessment Net Levy Mat. Principal Rates Interest & Interest of Total Income Requirement ( ( ( ( ( ( ( ( ( 1994 1996 65,000 4.10% 61,149 126,149 132,456 61 71,132 1995 1997 80,000 4.30% 38,101 118,101 124,006 55,627 68,379 1996 1998 80 4.50% 34,661 114,661. 120 53,136 67,258 1997 1999 80,000 4.65% 31,061 111,061 116,614 50,645 65,969 1998 2000 85,000 4.80% 27,341 112,341 117,958 48,155 69,803 1999 2001 85,000 4.95% 23,261 108,261 113,674 45,664 68,010 2000 2002 85,000 5.10% 19,053 104,053 109,256 43,174 66,082 2001 2003 90 5.25% 14,718 104,718 109,954 40 69 2002 2004 90,000 5.35% 9,993 99,993 104,993 38,191 66,802 2003 2005 95,000 5.45% 5,178 100,178 105,187 35,701 69,486 TOTALS: 835,000 264,516 1 1,154,492 472,299 682,193 Bond Years: 5,212.50 Annual Interest: 264,516 Avg. Maturity: 6.24 Plus Discount: 10,020 Avg. Annual Rate: 5.075% Net Interest: 274,536 T.I.C. Rate: 5.276% N.I.C. Rate: 5.267% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. . M -U z � v 00 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,830,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1994A Proposals for the Bonds will be received on Monday, July 25, 1994, until 1:00 P.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. DETAILS OF THE BONDS The Bonds will be dated August 1, 1994, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1995. Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the • books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature February 1 in the years and amounts as follows: 1996 $110,000 2000 $180,000 2003 $210,000 1997 $155,000 2001 $190,000 2004 $220,000 1998 $165,000 2002 $200,000 2005 $230,000 1999 $170,000 OPTIONAL REDEMPTION The City may elect on February 1, 2003, and on any day thereafter, to prepay Bonds due on or after February 1, 2004. Redemption may be in whole or in part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge net revenues from the City's Storm Drainage Enterprise Fund. The proceeds will be used to finance construction of storm drainage improvements within the City. TYPE OF PROPOSALS Proposals shall be for not less than $1,808,040 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 $18,300, Page 9 payable to the order of the City. If a check is used, it must accompany each 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 Minneosta, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in 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. 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. 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 at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, 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 for any loss suffered by the City by reason of the purchaser's non - compliance with said terms for payment. Page 10 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 (612) 223 -3000. I 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 b law, shall c "Final " q y 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 75 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 ro osal is accepted the C' P ted b P P i it shall accept such designation and Y City ii P 9 () 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 June 27, 1994 BY ORDER OF THE CITY COUNCIL /s/ Mr. Gerald Splinter City Manager i Page 11 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: i TERMS OF PROPOSAL $835,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1994B Proposals for the Bonds will be received on Monday, July 25, 1994, until 1:00 P.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. DETAILS OF THE BONDS The Bonds will be dated August 1, 1994, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1995. Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature February 1 in the years and amounts as follows: 1996 $65,000 2000 $85,000 2003 $90,000 1997 $80,000 2001 $85,000 2004 $90,000 1998 $80,000 2002 $85,000 2005 $95,000 1999 $80,000 i OPTIONAL REDEMPTION The City may elect on February 1, 2003, and on any day thereafter, to prepay Bonds due on or after February 1, 2004. Redemption may be in whole or in part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments against benefited property. The proceeds will be used to finance street improvement projects within the City. TYPE OF PROPOSALS Proposals shall be for not less than $824,980 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 $8,350, Page 12 payable to the order of the City. If a check is used, it must accompany each 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 Minneosta, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1 %. Rates must be in 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. 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. 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. Page 13 v SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, 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 for any loss suffered by the City by reason of the purchaser's non - compliance with said terms for payment. 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 (612) 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 35 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 June 27, 1994 BY ORDER OF THE CITY COUNCIL /s/ Mr. Gerald Splinter City Manager Page 14 lDb t Extract of Minutes of Meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota, was held at the City Hall in the City on Monday, June 27, 1994, commencing at 7:00 o'clock P.M. The following members of the Council were present: and the following were absent: The following written resolution was presented by Councilmember who moved its adoption the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $835,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1994B BE IT RESOLVED By the City Council of the City of Brooklyn Center, Hennepin County, Minnesota (City) as follows: 1. It is hereby determined that: (a) the following assessable public improvements (the Improvements) have been made, duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of Minnesota Statutes, Chapter 429 (Act) ; SNG71942 M91 -125 Project 94 -11 (Northwest Area) $595,346 Project 94 -101 (James /Knox) 233,216 Subtotal $828,562 Allowance for Discount Bidding 10,020 Less: Investment Earnings (3,582 Total Improvement Bond Issue 835 000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $835,000 General Obligation Improvement Bonds, Series 1994B (Bonds) pursuant to the Act to provide financing for the Improvements. 2. To provide financing for the Improvements, the City will issue and sell Bonds in the amount of $824,980. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $10,020. The excess of the purchase price of the Bonds over the sum of $824,980 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms of Proposal: SNG71942 BR291 -125 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $835,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1994B Proposals for the Bonds will be received on Monday, July 25, 1994, until 1:00 P.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. DETAILS OF THE BONDS The Bonds will be dated August 1, 1994, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1995. Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature February 1 in the years and amounts as follows: 1996 $65,000 2000 $85,000 2003 $90,000 1997 $80,000 2001 $85,000 2004 $90,000 1998 $80,000 2002 $85,000 2005 $95,000 1999 $80,000 OPTIONAL REDEMPTION The City may elect on February 1, 2003, and on any day thereafter, to prepay Bonds due on or after February 1, 2004. Redemption may be in whole or in part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments against benefited property. The proceeds will be used to finance street improvement projects within the City. TYPE OF PROPOSALS Proposals shall be for not less than $824,980 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 $8,350, -i- payable to the order of the City. If a check is used, it must accompany each 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 Minneosta, and rea roved b the City. Such bond must be submitted to p pp Y tY Springsted Incor orated prior to the opening of the proposals. The Financial Sure Bond P p p P Surety p g must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in 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 uali for issuance of an policy of municipal q fY Y p Y al bond insurance or commitment P 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. 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. 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. -ii- SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, 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 for any loss suffered by the City by reason of the purchaser's non - compliance with said terms for payment. 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 (612) 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 mess da s after the date of such award it shall Y provide without cost to the P senior managing underwriter of the syndicate to which the Bonds are awarded 35 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 June 27, 1994 BY ORDER OF THE CITY COUNCIL /s/ Mr. Gerald Splinter City Manager -iii - 3. Springsted Incorporated is authorized and directed to negotiate the Bonds in accordance with the foregoing Terms of Proposal. The City Council will meet at 7:00 o'clock P.M. on Monday, July 25, 1994, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. Date Todd Paulson, Mayor ATTEST: Deputy 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. SNG71942 BR291-125 STATE OF MINNESOTA ) } COUNTY OF HENNEPIN ) CITY OF BROOKLYN CENTER ) I, the undersigned, being the duly qualified and acting City Manager of the City of Brooklyn Center, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, June 27, 1994, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as they relate to the issuance and sale of $835,000 General Obligation Improvement Bonds, Series 1994B of the City. WITNESS My hand as City Manager and the corporate seal of the City this day of 1994. City Manager City of Brooklyn Center, Minnesota (SEAL) SNG71942 BR291 -125 /dd � Extract of Minutes of Meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota, was held at the City Hall in the City on Monday, June 27, 1994, commencing at 7:00 P.M. The following members of the Council were present: and the following were absent: The following written resolution was presented by Councilmember who moved its adoption the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,830,000 GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1994A BE IT RESOLVED By the City Council of the City of Brooklyn Center, Hennepin County, Minnesota ( City) as follows: 1. It is determined that: (a) the City is authorized by Minnesota Statutes, Section 444.075 s Bonds to finance all or Act to issue and sell its general obligation bond (Bonds) g t' enlargement and other improvements portion of the cost of the construction, g p ponds, to its storm sewer system including mains, holding areas and p , and other appurtenances and related facilities for the collection and disposal of storm water ( Facilities) . SNG71939 BR291 -125 (b) the Bonds may be general obligations of the City if the City Council in the resolution awarding the sale of the Bonds covenants that it will impose rates and charges for the use of the Facilities at the times and in the amounts required to produce, together with any other revenues pledged for payment of the Bonds, net revenues (as defined by the Act) adequate to pay all principal and interest when due on the Bonds. (c) the City Engineer has informed this Council that contracts for the construction and related costs of construction and improvements to the Facilities ( Costs) have been or will be incurred as follows: Project Designation & Description Total Project Project 94 -11 (Northwest Area) $ 555,400 Project 93 -18 (Gateway Pond /Park and Drainage Upgrades) 1,255,000 Subtotal $1,810,400 Costs of Issuance 20,295 Allowance for Discount Bidding 21,960 Less: Investment Earnings (22,655) Total $1,830,000 (d) it is necessary and expedient to the sound financial management of the affairs of the City to issue $1,830,000 General Obligation Storm Sewer Revenue Bonds, Series 1994A (Bonds) pursuant to the Act to provide financing for the Project. 2. In order to provide financing for the Project, the City will therefore issue and sell Bonds in the amount of $1,808,040. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $21,960. The excess of the purchase price of the Bonds over the sum of $1,808,040 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Official Terms of Proposal: SNG71939 BR291 -125 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,830,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1994A Proposals for the he Bonds will be received on Monday, July 25, 1994, until 1:00 P.M., Central Time, at the offices of S nn sted Incorporated, p g o porated, 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. DETAILS OF THE BONDS The Bonds will be dated August 1, 1994, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1995. Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will be issued in the denomination of 5 00 $ , 0 each or in integral multiples thereof, as requ g sted b urchaser, and ful q Y the registered as to P y principal and interest. Principal will be payable at th 9 P p p p y a main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature February 1 in the years and amounts as follows: 1996 $110,000 2000 $180,000 2003 $210,000 1997 $155,000 2001 $190,000 2004 $220,000 1998 $165,000 2002 $200,000 2005 $230,000 1999 $170,000 OPTIONAL REDEMPTION The City may elect on February 1, 2003, and on any day thereafter, to prepay Bonds due on or after February 1, 2004. Redemption may be in whole or in part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge net revenues from the City's Storm Drainage Enterprise Fund. The proceeds will be used to finance construction of storm drainage improvements within the City. TYPE OF PROPOSALS Proposals shall I be for not less than $1,808,040 and accrued interest on the total rinci p pal a mount of the Bonds. Proposals shall be accompanied b a Good Faith Deposit ("Deposit") i P Y P � P ) n the form of a certified or cashier's check or a Financial Surety Bond in the amount of tY 18 300 $ -i- payable to the order of the City. If a check is used, it must accompany each 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 Minneosta, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in 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. 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. 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 at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, 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 for any loss suffered by the City by reason of the purchaser's non - compliance with said terms for payment. -ii - 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 (612) 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 75 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 June 27, 1994 BY ORDER OF THE CITY COUNCIL /s/ Mr. Gerald Splinter City Manager 3. Springsted Incorporated is authorized and directed to negotiate the Bond for sale in accordance with the foregoing Terms of Proposal. The City Council will meet at 7:00 p.m. on Monday, July 25, 1994, to consider proposals on the Bonds and take other appropriate action with respect to the Bonds. 4. In the resolution awarding the sale of the Bonds the City Council will set forth the covenants and undertakings required by the Act. Date Todd Paulson, Mayor ATTEST: Deputy Clerk The motion for the adoption of the foregoing resolution was duly seconded b member P g g Y Y 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. SNG71939 BR291 -125 STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) CITY OF BROOKLYN CENTER ) I, the undersigned, being the duly qualified and acting City Manager of the City of Brooklyn Center, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, June 27, 1994, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as they relate to the issuance and sale of $1,830,000 General Obligation Storm Sewer Revenue Bonds, Series 1994A of the City. WITNESS My hand as City Manager and the corporate seal of the City this day of 1994. City Manager City of Brooklyn Center, Minnesota (SEAL) SNG71939 BR291 -125 Council Meeting Date 6/a 7 /q4 31 City of f Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: RECOMMENDATION OF THE FINANCIAL COMMISSION REGARDING THE MAYOR AND COUNCIL MEMBER TOTAL COMPENSATION Department Approval: Charles Hansen, Finance Director Manager's Review /Recommendation: /X . r No comments to supplement this report J Comments below /attached Summary Explanation: (supplemental sheets attached _) The Financial Commission met to review the total compensation for the Mayor and Councilmembers and recommend compensation levels for 1995 and 1996. The Financial Commission took up this issue at its meeting of June 16, 1994 and wishes to inform the City Council of a motion passed regarding the matter. Viola Kanatz moved that an increase of $200 per year be recommended for the Mayor and Councilmembers to be effective on January 1, 1995 and again on January 1, 1996. The resulting total compensation would be $7,500 for the Mayor and $5,500 for each Councilmember in 1995 and $7,700 for the Mayor and $5,700 for each Councilmember in 1996. Denis Kelly seconded the motion and all present voted in its favor. Complete minutes of the meeting will be distributed and approved at the Financial Commission's next meeting. State law and the City's Policy and Procedure on Mayor and Council Member Total Compensation require that the City Council enact any pay increases which will apply to itself prior to a general election and that the pay increase not take effect until after the general election. Due to summer vacations and other conflicts, no member of the Financial Commission is available to be present at the June 27, 1994 City Council meeting. The recommendation is being forwarded to you to meet the requirement in the Policy and Procedure that the Financial Commission give you a recommendation by June 30th. The City Council may either discuss the matter tonight or schedule discussion for a later meeting. Recommended City Council Action: Review and consider the Financial Commission's recommendation for an increase in Mayor and Council Member total compensation. • LEAGUE OF MINNESOTA CITIES SURVEY OF MAYOR AND COUNCILMEMBER SALARIES CITIES WITH POPULATIONS FROM 20,000 TO 40,000 ANNUAL SALARY IN 1994 MUNICIPALITY POPULATION MAYOR COUNCIL MEMBER Apple Valley 37,035 $8,400 $6,000 Cottage Grove 24,574 $6,600 $4,800 Crystal 23,839 $7,421 $5,626 Fridley 28,369 $8,400 $6,900 Golden Valley 21,019 $9,105 $6,815 Inver Grove Heights 23,721 $7,500 $6,000 Lakeville 27,982 $8,400 $7,200 Maplewood 31,909 $8,686 $7,644 New Brighton 22,324 $7,200 $5,580 New Hope 21,875 $8,280 $6,006 Oakdale 20,574 $6,000 $5,820 Richfield 35,625 $7,573 $5,878 Roseville 33,522 $7,800 $6,000 Shoreview 25,345 $6,492 $4,872 South St. Paul 20,295 $7,200 $4,200 White Bear Lake 25,101 $4,800 $3,600 Woodbury 23,252 $4,920 $3,600 AVERAGE 26,257 $7,340 $5,679 Brooklyn Park 57,688 $13,140 $8,760 Average including B.P. 28,003 $7,662 $5,850 Brooklyn Center 28,558 $7,300 $5,300 9 D MINUTES OF THE PROCEEDINGS OF THE FINANCIAL CO S OF THE CITY OF BROOKLYN CENTER JUNE 16, 1994 BROOKLYN CENTER CITY HALL, CONFERENCE ROOM A CALL TO ORDER Chair Donn Escher called the meeting to order at 7:00 P.M. in the City Hall Conference Room A. ROLL CALL Present at roll call were Chair Donn Escher, Commissioners: Lee Anderson, Denis Kelly, Viola Kanatz and Larry Peterson. Also present were City Manager Gerald Splinter, Public Services Director Diane Spector, City Engineer Mark Maloney, and Finance Director Charlie Hansen. Approval of Minutes A motion was made by Commissioner Larry Peterson to approve the minutes of the May 5, 1994 meeting. Commissioner Lee Anderson seconded the motion and all members voted in its favor except for Denis Kelly and Viola Kanatz who abstained. Demonstration of Pavement Management System. Diane Spector introduced a report on the results of the pavement management study. Mark Maloney explained that the Pavement Management System is both a paper report and a database of information on a computer that can be updated over time. It is designed to plan for the efficient spending of resources on street maintenance, seal coating, patching, overlay, and reconstruction. A van with six cameras and an electromagnetic deflection devise drives over each traffic lane on the 100 miles of city streets and catalogs 20 different kinds of pavement distress. Stresses to streets come from age, soil conditions, truck and bus traffic, moisture, and freeze /thaw cycles. Streets are then categorized as needing normal maintenance (patching & seal coating) , overlay of tar, or complete reconstruction. Diane Spector explained that street eco r nstruction be' is being coordinated with improvements to water, sanitary sewer, and storm sewer systems so that newly paved streets won't have to be dug up again for many years. Mayor and Council Member Total Compensation Donn Escher reviewed the City Policy and Procedure and the state law requirements for increasing the compensation of the Mayor and Council Members. After discussing various alternatives and principles, a consensus was reached on the following points: 1. The compensation should remain near the average for the League of Minnesota Cities Survey of Mayor and Councilmember Salaries for Cities with Populations from 20,000 to 40,000. 2. The compensation should be adjusted each year to avoid falling below the average. UM 3. The percentage increase each year should be reasonable in comparison to the general rate of inflation. Viola Kanatz moved that an increase of $200 per year be recommended for the Mayor and Councilmembers to be effective on January 1, 1995 and again on January 1, 1996. The resulting total compensation would be $7,500 for the Mayor and $5,500 for each Councilmember in 1995 and $7,700 for the Mayor and $5,700 for each Councilmember in 1996. Denis Kelly seconded the motion and all present voted in its favor. 1993 Annual Financial Report Due to the late hour, it was decided to do an abbreviated review and the annual financial report at this meeting and then complete it at the commission's next meeting. Charlie Hansen passed out a copies of the presentation the auditor made at the June 13, 1994 City Council meeting and the City's responses to the auditor's management letter. The auditor's management letter and the City's responses were discussed. Next Meeting The next meeting will be Monday, August 15, 1994 at 7:00 P.M. ADJOURNMENT At 9:15 P.M. there was a motion by Commissioner Viola Kanatz and seconded by Commissioner Denis Kelly to adjourn the meeting. The motion passed unanimously. Cmmeil Meeting Date 6M /94 City of Brooklyn Center Agenda Item Number zo tion: Item Descri Request For Council Consideration P Request For Proposals; Police Department Management Consultant Department Approval: Gerald G. Splinter, City Manage Manager's Review/Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached Yes Attached please find a draft of a Request for Proposals for the police department management consultant analysis or study. This is our latest draft of the RFP. • At this time, Clifford Greene, attorney in the Chief Hampton lawsuit, has had initial review of this document and approves it but may wish to have additional comments as to the timing of the study. I will pass on his comments when I receive them, and I am hopeful I will receive them prior to your consideration of this matter next Monday. We have not had an opportunity to share this draft of the RFP with any consultants to test or seek their reaction or comments. The purpose of testing would be to see if the range of possible costs (estimated at $45,000 to $70,000) is still valid with this draft RFP. Recommended City Council Action: Staff recommends the City Council review the RFP to see if it contains the elements desired, discuss the publication process, and approve the RFP as submitted or modified. • JUN 23 '94 10:52 HOLMES a GRAVEN P.5 I REQUEST FOR PROPOSALS; POLICE DEPARTMENT MANAGEMENT CONSULTANT The City Council of the City of Brooklyn Center is requesting proposals for management consultant services generally involving an investigation and evaluation of certain management issues in the city's police department and preparation of a report to the city council with the consultant's findings and recommendations. 1. PURPOSE-. In recent months, the city council has become aware of allegations which call into question the effectiveness of management, specifically including management by the Chief of Police, and which raise various issues relating to the department's internal affairs, r employee morale, and communication problems. Additionally, the city was rccently served with a summons and complaint in a suit brought by the chief of police alleging, among other things, racial discrimination and a hostile racial work environment in the department. The city council seeks to understand the sources of conflict with the speck goals of resolving them if possible and preventing their recurrence in the future. 2. SCOPE OF MANAGEMENT CONSULTANT SERVICES. The consultant shall investigate a number of management issues relating to the police department, prepare a written report to the city council of the consultant's findings, and make appropriate recommendations to the city council to correct any problems or deficiencies discovered by the consultant. The matters to be investigated include, but are not necessarily limited to, the following: a.. Identify any real or perceived differences between actual management performance by the chief of police and expectations about such performance held by the city council, city manager, and police department subordinates. b. _ Evaluate present police department personnel management practices with respect to, hiring, promotion, performance evaluation and worldng conditions. CLL71964 BR291-124 I JUN 23 '94 10 :52 HOLMES & GRRVEN P.6 C. Review the effectiveness of the chief of police in meeting the performaace of the goals of the police department. This review should include such issues as whether the best people are in the right jobs, whether the department is projecting an appropriate image to the public, and whether the job of law enforcement and protection is being efficiently carried out. d. Assess the effectiveness of departmental communications. The assessment should include communications between the department and the union, between subordinates and the chief, between the chief and the city manager, and between the city manager and the city council. Evaluation of the effectiveness of communication should include whether the chief is available when he is needed, whether patrol officers and other police personnel Know whom to consult for assistance when needed and whether they have confidence that the will receive such help. P C. Investigate whether there is sexual or racial discrimination within the department, and whether any complaints of such discrimination are handled efficiently and promptly. L Determine the extent to which the chief has followed through on goals identified at the time of his employment. g. Evaluate the morale in the department at the present time, identify any causes of bad morale, and evaluate any effects which bad morale may be having on departmental performance. h. Determine whether the present departmental organization facilitates - clear I!= of authority for unrestricted communication from the bottom up as well as the- top - down. CU71964 BR29i -129 2 JUN 23 '94 10:53 HOLMES & 0"RRVEN P.7 i. Detemune whether police department personnel have been provided with clear and understandable direction relating to proper conduct, the role and mission of the police department in the community, and the treatment of persons, and particularly persons of color, and ethical and moral values regarding their conduct. Determine whether any deviations from such standards are addressed in a timely manner. j. Evaluate the command, leadership, direction and supervision provided by the chief of police. The scope of management review is not intended by the council to include such matters which might ordinarily be considered in a police department management study as reorganization, effectiveness of delivery of police services, manpower needs, potential growth, staffutg levels, training, salaries and benefits, field operations, dispatching, case management, service functions, physical facilities and the like, except to the extent such issues incidentally bear on those issues which are identified above. 3. PROCEDURES: The city council currently contemplates that the procedure for providing consultant services would be as follows: i a. Conduct initial interviews, and such follow -up interviews as are necessary, with the mayor, all city council members, the city manager, the chief of police, supervisors, union representatives, and as many- officers and police department personnel '. as is deemed necessary by the consultant to effectively identify any problem areas within the scope of services. b. In interviews with city council members, the consultant should also seek to identify any other problems or areas of concern not specifically listed above in the scope of work of the project. In the event this inquiry reveals an expectation on the part of council members which is not consistent with the scope of work and which would GLL71966 sRa9a -�z� 3 JUN 23 '94 10:53 HOLMES & GRRVEN p,g increase the cost of services, the consultant shall seek the authority of the city council before proceeding with further investigation of such issues. C. Upon completion of interviews, the consultant shall orally report to the city council its initial findings and discuss whether the scope of the investigation is deemed adequate by the city council to proceed to the next stage. d. Following an authorization to proceed, the consultant shall prepare a written report which shall include the results of the consultant's investigation, identify and describe any management shortcomings, problems, or concerns within or outside of the scope of work, and make recommendations , including alternative options, for future action which might be considered by the city council to remedy any shortcomings or deficiencies. Recommendations' might include, but are not limited to, management training, team building, counseling, diversity or sensitivity training, employee discipline, changes in procedures, changes in personnel, or adjustment of work assignments. C. The consultant shall meet with the city council following submission of its report to present its report and answer questions by the city council. f. Prior to commencing work, the consultant shall meet with the city attorney to discuss implications of the Minnesota Data Practices Act, the Minnesota Open Meeting Law, the Police Offi Discipline Bill of Flights; and any other local laws related to the scope of the work of the project. g. The consultant should feel free to suggest to the city council any proposed changes to either the scope of work or the foregoing procedures. 4. CONTRACT 'TERMS: The consultant shall identify specific personnel who will be involved in providing services to the city and identify the nature and scope of work assignments to each such person. The consultant shall specify hourly rates for each such person cz,i ?�96a BR291 -124 4 JUN 22 '94 10:54 HOLMES GRAVEN P.9 identified. The consultant shall also provide an estimate of the cost of the work of the project, and a "not-to-exceed" cost would be preferred. S. REFERENCES: Consultant shall provide a list of references, including individual contact persons. The, references provided shall be clients for whom the people identified in the proposal have worked. To the extent possible, consultant should provide references, and describe services rendered to other law enforcement agencies. The council is interested in retaining a consultant with credentials, background, and qualifications which will enable them to be perceived as impartial in evaluating the management, labor relations and discrimination issues which have been raised. . 6. SUBMISSION OF PROPOSALS- proposals shall be submitted to the city manager at City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, MIST 55430 no later than 4:30 p.m. on , 1994. V,01s64 Council Meeting Date 6/27/94 3 City of Brooklyn Center Agenda Item Number � Q� Request For Council Consideration • Item Description: CITIZEN APPEAL REGARDING CLEAR VIEW TRIANGLE VIOLATION Department Approval: lane Spector, Dire to of Public Services Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached Yes ) The property at 4018 - 58th Avenue North, the northeast corner of June and CR 10, has several times been requested to abate a Clear View Triangle violation. Each time, the property owner, Ms. Mona Hintzman, has appealed this determination. • Engineering staff can recall that at least a half -dozen complaints have been received g g p ecel ed from the public regarding this location. This location has also been noted by the police department. Attached to this item is a memo from a member of our street maintenance crew, who states that the evergreens in question impede the ability to clearly see westbound traffic. He is concerned because the snowplow on his truck extends out into the intersection when he pulls forward enough to see traffic. I should note that this particular employee works in the sign shop, and is familiar with regulations regarding sign placement, safe sightlines, and stopping distances, etc. A slide presentation will be available at tonight's meeting. Recommended City Council Action: If possible, visit the site prior to tonight's meeting. Review the slides. Receive input from the property owner. Make a determination. If necessary, set dates by which various actions should be taken. • TO: Dave /Bob FROM: John Harlow DATE: Feb. 3, 1994 RE: Intersection Sight Triangles In the course of snow plowing, I have recognized a sight distance problem at the intersection of County Road 10 and June Avenue North. The evergreens in the northeast quadrant of this intersection obscure the view of approaching traffic from the east when traveling southbound on June Avenue. Having to pull inordinately far into the intersection, to get a clear view of oncoming traffic, becomes extremely dangerous on account of the snowplow extending so far out in front of the truck. I would appreciate your assessment of this situation, and if necessary referring it to the proper authority for action. Thank You, John Council Mewing Date 6/27/94 3 City of Brooklyn Center Agenda Item Numbe Request For Council Consideration . Item Description: PRESENTATION OF PAVEMENT MANAGEMENT PROGRAM Department Approval: &am--L Ws(XJNQ Diane Spector, Director of blie Services Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached No ) The City Council on August 24, 1992 awarded a contract to Braun Intertec Pavement, Inc., to prepare the City's Pavement Management Program. This program consisted of 1) the observation, testing, and analysis of the condition of all streets in the city under the City's jurisdiction, and 2) the creation of a • computer database and Pavement Management Program application to use and update the collected data. The preparation of the second part of the program took much longer than expected because the City had the opportunity to be on the "cutting edge" of the development of a new version of the PMP software. A PMP is a management tool which allows the City to evaluate various options for maintenance, repair, and replacement of its pavements. Its greatest utility is in its ability to fine -tune maintenance programs so that they provide for the most cost - effective strategies. The presentation at tonight's meeting will provide the Council with an overview of the existing pavement conditions in the city, and will provide a framework for discussion of future maintenance and reconstruction needs. Recommended City Council Action: Discuss the information presented, and provide direction to staff. • Council Meeting Date 06/27/94 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: STAFF REPORT REGARDING HUMBOLDT AVENUE TRAFFIC CONTROL Department Approval: Mark J. Ma oney, ty Engineer Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached Yes ) Following is a brief analysis of various traffic control ideas which are currently being discussed in the context of Humboldt Avenue from 69th Avenue to 73rd Avenue. • STOP SIGNS Throughout the development of proposed improvements to Humboldt (and 73rd) there has been discussion about placement of stop signs at various locations. Staff was initially directed to install stop signs at the intersections of Humboldt Avenue with 67th, 70th and 72nd Avenues, and at the intersection of 73rd Avenue with Dupont. As you may recall, my report to the City Council work session, dated February 18, 1994, pointed out the difficulties and possible pedestrian safety hazards associated with putting a stop sign at the intersection of Humboldt Avenue with 67th, and that Brooklyn Park would need to cooperate with adding stop sign(s) to the intersection of 73rd with Dupont. Stop signs were placed, however, at the Humboldt Avenue intersections with 70th and 72nd, as ordered. There has been further discussion of adding stop signs at the remaining intersections between 69th and 73rd Avenues, presumably in an effort to make it even more difficult for traffic on Humboldt Avenue. I would advise against that for the following reasons: 1) They are unwarranted when considering the guidelines of the Minnesota Manual on Uniform Traffic Control Devices (MMUTCD). 2) Residents from the greater neighborhood have already indicated that the observed decrease in traffic volume on Humboldt is a direct result of traffic bypassing onto the • other north -south streets in the area, which will increase with more impediments on Humboldt. It would seem prudent to wait for the recommendation of the Northeast Corridor Task Force, which includes representatives of the greater neighborhood, prior to installing more stop signs. I 3) Adding stop signs to mid - segment locations on a State Aid route results in a noticeable decrease in the level -of- service, which is contrary to what the State Aid system was established for. Purposely degrading the level -of- service may cause State Aid to require the City to remove the designation from this route, thereby eliminating the possibility of State Aid funding for future improvements. • 4) Generally, I believe that installing signage of any type in what the average motorist interprets as unwarranted locations or situations contributes to an overall decrease in the effectiveness of traffic control City -wide. At some point, people just stop obeying (or even paying attention to) the signs, markings, etc. that they don't see a good reason for. This is a dangerous situation and is best exemplified when a pedestrian who is attempting to cross a street and is relying on the traffic control, assumes that a vehicle is stopping for a stop sign and steps into the driving lane. STRIPING It has been suggested that we install a solid yellow, double centerline on Humboldt Avenue between 69th and 73rd Avenues. Legally, that would establish (along with necessary signage) a no- passing zone on the street. My personal experience, together with my interpretation of the MMUTCD, is that for two -lane situations this type of traffic control is more applicable to higher speed, rural highways or roadways which have potentially dangerous sight distance problems such as sharp horizontal curves or grade changes. Sight distance isn't really a problem on Humboldt, and in a residential area such as this there would be the potential for confusion in that drivers wouldn't know whether or not it was legal to make a left turn across the solid yellow lines. • I really can't think of any applications exactly of this type currently in the City. The streets in Brooklyn Center which are striped this way'are so because of sight distance problems, or that they are four -lane roads in and around commercial areas. I recommend that we stay with the existing single yellow skip line, which is more commonly seen (and understood) in the metro area for roadways of this character. 69th /HUMBOLDT GEOMETRICS I have been asked to review the geometrics of the 69th/Humboldt Avenue intersection, and comment on possible changes to the northbound lane configuration. With reference to attached graphic, I'll go over what is there now and how we got there. As you can see, Humboldt Avenue just north of the intersection is four lanes wide, to accommodate the traffic movements to /from the more intensively zoned apartment and liquor store properties. The roadway then tapers down to two lanes totaling 30 feet in width. The existing lane configuration on the south approach to the intersection consists of the left lane being combination left- turn/through, and the right lane being combination right- turn/through. It is my understanding that, a number of years ago the configuration was the left lane being a combination left - turn/through, and the right lane be a right -turn only. The result was that during peak hours the traffic queue extended south past the driveways of the commercial properties, making access to those properties very difficult. The existing configuration is a • compromise, and seems to operate acceptably during peak and off -peak hours. The recent suggestion as I understand it is to make the left lane a left -turn only, and the right lane a combination right - turn/through lane. It is my opinion that, by reducing (again) the through capacity by 50 %, we will experience the same traffic queuing /access problems as were described above, and an overall decrease in the level -of- service of the roadway. In addition, enforcement will become a major problem in that over time, after it is noticed that the majority of traffic movement in the peak hour is through - traffic, drivers will simply ignore the lane markings and create a hazardous situation when merging further to the north. I must conclude, that upon consideration of the peak hour traffic and the observations of the previous lane configuration that the existing arrangement of both northbound lanes being combination through -lanes is the best compromise. • • CITY 6301 SHINGLE CREEK PARKWAY OF BROOKLYN BROOKLYN CENTER, MINNESOTA 55430 TELEPHONE: 569 -3300 C ENTER FAX: 569 -3494 EMERGENCY - POLICE - FIRE 911 MEMORANDUM TO: Mayor and City Councilmembers FROM: Mark J. Maloney, City Engineer DATE: June 27, 1994 SUBJ: Humboldt Avenue Level -of Service Analysis Attached please find a letter from Mary Bieringer, Assistant State Aid Engineer, Metro Division, informing the City that based on the level -of- service analysis, State Aid funds may not be used to reconstruct Humboldt Avenue to a 32' width with parking on one side. Ms. Bieringer informs the City our only option is to request a variance from the Department of Transportation. Accordingly, I have attached a resolution requesting a variance for the City's consideration. Also, enclosed is an excerpt from the State Aid Administrative Rules describing the variance process. �C Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION REQUESTING CONSIDERATION OF A VARIANCE FROM STATE AID OPERATIONS RULES, CHAPTER 8820 FOR HUMBOLDT AVENUE NORTH, MSA 109 -108 -030 WHEREAS, Humboldt Avenue North, between 69th to 73rd Avenues, has previously been designated as part of Brooklyn Center's Municipal State Aid System; and WHEREAS, it is the City of Brooklyn Center's desire to construct roadway and utility improvements which accommodate on- street parking along one side of the road; and WHEREAS, the 20 year projected ADT for this segment of Humboldt Avenue requires the application of design standards for a 2 -lane, Arterial roadway, which indicate a minimum width of 36 feet necessary for two traffic lanes with parking along one side of the street; and WHEREAS, it is the desire of the City of Brooklyn Center to reconstruct the roadway to the minimum design width as specified in State Aid Operations Rules, Chapter 8820.9935, for a 2 -lane Collector classification. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the Commissioner of the Minnesota Department of Transportation is hereby requested to consider at the earliest possible date a variance from the published minimum width required for a 2 -lane Arterial roadway as specified in State Aid Operations Rules, Chapter 8820.9935, and allow the use of State Aid funds for the construction of a 32 foot wide roadway which accommodates parking along one side. Date Todd Paulson, Mayor ATTEST: Deputy 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. EXCERPTS FROM STATE AID OPERATIONS RULES CHAPTER 8820 8820.3300 VARIANCE Subpart 1. Written requests. A formal request by a political subdivision for a variance from this chapter must: A. be submitted to the commissioner in writing in the form of a resolution; B. identify the project by location and termini; and C. cite the specific part or standard for which the variance is requested and describe the modification proposed. Subp. la. Additional information. Additional information needed: A. index map; B. typical section; (1) inplace section; (2) proposed section; C. reasons for the request; D. the economic, social, safety, and environmental impacts which may result from the requested variance; E. effectiveness of the project in eliminating an existing and projected deficiency in the transportation system; F. effect on adjacent lands; 'G. number of persons affected; and H. safety considerations as they apply to: (1) pedestrians; (2) bicyclists; (3) motoring public; and (4) fire, police, and emergency units. Subp. 2. Notice of request. The commissioner shall publish notice of variance request in the State Register and shall request comments from interested parties be directed to the commissioner within 20 calendar days from date of publication. Subp. 3. Decision. The commissioner shall base the decision on the criteria in part 8820.3400, subpart 3 and shall notify the political subdivision in writing of the decision. The commissioner shall require a resolution by the recipient of the variance that indemnifies, saves, and holds harmless the state and its agents and employees of and from claims, demands, actions, or causes of action arising out of or by reason of the granting of the variance. The recipient of the variance shall further agree to defend at its sole cost and expense any action or proceeding begun for asserting any claim of whatever character arising as a result of the granting of the variance. Subp. 4. Contested case hearing. Any variance objected to in writing or denied by the commissioner is subject to a contested case hearing as required by law. SA: MS s 161.082; 161.083; 162.02; 162.09; 162.155; Laws 1983 c 17 HIST: 8 S 2146; 15 SR 2596 1 8820.3400 ADVISORY COMMITTEE ON VARIANCES. Subpart 1. Appointment. p ppo tment. The commissioner may appoint a committee to serve as required to investigate and determine a recommendation for each variance. No elected or appointed official that represents a political subdivision requesting a variance may serve on the committee. Subp. 2. Membership. The committee shall consist of any five of the following persons: not more than two county highway engineers, only one of whom may be from a county containing a city of the first class; not more than two city engineers, only one of whom may be from a city of the first class; not more than two county officials, only one of whom may be from a county containing a city of the first class; and not more than two city officials, only one of whom may be from a city of the first class. The committee must have at least two elected officials as members. Subp. 3. Operating procedure. The committee shall meet on call from the commissioner at which time they shall elect a chairperson and establish their own procedure to investigate the requested variance. The committee shall consider the: A. economic, social, safety, and environmental impacts which may result from the requested variance; B. effectiveness of the project in eliminating an existing and projected deficiency in the transportation system; C. effect on adjacent lands; D. number of persons affected; E. effect on future maintenance; F. safety considerations as they apply to pedestrians, bicyclists, motoring public, and fire, police, and emergency units; and G. effect that the rule and standards may have in imposing an undue burden on a political subdivision. Subp. 4. Recommendation. The committee after considering all data pertinent to the requested variance shall recommend to the commissioner approval or disapproval of the request. SA: MS s 161.082; 161.083; 162.02; 162.09; 162.155; Laws 1983 c 17 HIST: 8 SR 2146; 17 SR 1279 2 �� Minnesota Department of Transportation Metropolitan Division Waters Edge Building 1500 West County Road B2 r OF Roseville, Minnesota 55113 June 22, 1994 Mr. Mark J Maloney Brooklyn Center City Engineer 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 SUBJECT: Humboldt Ave Capacity Analysis Dear Mr. Maloney: As requested, I have reviewed the City's request to reconstruct Humboldt Ave to a width of 32' with parking on one side, for conformance with the State Aid Operations Rules. This review was based on the traffic volume information and capacity analysis submitted May 19, 1994. Based on section 8820.9950 of the State Aid Rules, Urban Roadway Classification, and the 20 year projected ADT of 12,000, Humboldt Ave is classified as an arterial roadway for the purposes of determining minimum State Aid design standards. With this projected ADT, Humboldt could be classified as low or high density. A low density arterial could be designed for either 2 or 4 through lanes, whereas, a high density arterial could be designed for either 4 or 6 through lanes. The minimum geometric design standards for reconstruction of an urban roadway with a design speed of 30 or 35 MPH, are specified in part 8820.9935 of the State Aid Rules. Assuming a 2 -lane design, the minimum width, face -to -face of curbs, would be 30 feet with no parking either side. If parking were allowed on one side, the minimum width would be 36 feet, and a minimum width of 42 feet would be required if parking were allowed on both sides. These dimensions are based on 11 foot traffic lanes, and each would be increased by 2 feet if the recommended 12 foot traffic lanes were used; however, this is not required. Under section 8820.9950, provisions are made for using a lower classification if a capacity analysis demonstrates that a level of service "D" or better can be achieved at the higher traffic volume. The level of service analysis prepared for this roadway, shows levels of service of "E" and " F " ; therefore, if the City wishes to utilize State Aid funding for the reconstruction of this roadway, the design must be in accordance to the minimum geometric design standards as described above. An Equal Opportunity Employer June 22, 1994 Mr. Maloney Page 2 Since State Aid funds must be expended in accordance with State Statute and the provisions of the State Aid Operations Rules, the State Aid Engineer would not be able to approve the expenditure of State Aid funds to reconstruct Humboldt Ave to a width of 32 feet, with parking on one side, unless a variance is granted. The State Aid Rules provides for a variance procedure, by which the City may formally request a variance to the State Aid Rules. The Variance Committee usually meets 4 times per year and consists of 5 city and county officials and /or engineers, chosen from around the State. If the City wishes to request a variance from a specific State Aid Rule, in this case 8820.9935, please prepare a written request to the Commissioner in accordance with the procedure outlined in 8820.3300, and submit to Mr. Patrick Murphy, Division Director, State Aid for Local Transportation. I am in receipt of your June 20, 1994 letter in which you requested a response to two specific questions: 1. I was not specifically awaiting any further information from the City (or Westwood) with regard to the LOS analysis. I apologize for the length of time in responding to your May 19th letter; however, limited personnel and increasing workloads do not always allow us to review and prepare the prompt responses I would prefer. 2. Since the variance request must cite the specific part of the Rules for which the variance is requested, it would have been inappropriate to submit a variance request prior to determining the roadway classification and geometric design standards required. I understand how difficult this issue is for all involved, from the City staff who have to determine what to do with the road, to the residents who want less traffic volume, to the motorists who now use this road. However, I would like to reaffirm that the State Aid Street System is selected by the City, and designated in accordance with law and established criteria, to provide additional funding for improvement and maintenance of those roads in the City with heavier traffic volumes and which provide an integrated street system. It is ultimately up to the City whether or not to use State Aid funds to improve Humboldt Ave. Please feel free to contact me if you have any questions or if I can be of any assistance. Sincerely Mary L. Bieringer, P� Ass S to Aid Engineer Metro Division CITY 6301 SHINGLE CREEK PARKWAY OF BROOKLYN BROOKLYN CENTER, MINNESOTA 55430 OE] TELEPHONE: 569 -3300 CENTER FAX: 569 -3494 EMERGENCY - POLICE - FIRE 911 MEMORANDUM TO: Mayor and City Councilmembers \ VA FROM: Mark J. Maloney, City Engineer 'M DATE: June 27, 1994 SUBJ: Humboldt Avenue Level -of Service Analysis • Attached please find a letter from Mary Bieringer, Assistant State Aid Engineer, Metro Division, informing the City that based on the level -of- service analysis, State Aid funds may not be used to reconstruct Humboldt Avenue to a 32' width with parking on one side. Ms. Bieringer informs the City our only option is to request a variance from the Department of Transportation. Accordingly, I have attached a resolution requesting a variance for the City's consideration. Also, enclosed is an excerpt from the State Aid Administrative Rules describing the variance process. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION REQUESTING CONSIDERATION OF A VARIANCE FROM STATE AID OPERATIONS RULES, CHAPTER 8820 FOR HUMBOLDT AVENUE NORTH MSA 109 -108 -030 WHEREAS, Humboldt Avenue North, between 69th to 73rd Avenues, has previously been designated as part of Brooklyn Center's Municipal State Aid System; and WHEREAS, it is the City of Brooklyn Center's desire to construct roadway and utility improvements which accommodate on- street parking along one side of the road; and WHEREAS, the 20 year projected ADT for this segment of Humboldt Avenue requires the application of design standards for a 2 -lane, Arterial roadway, which indicate a minimum width of 36 feet necessary for two traffic lanes with parking along one side of the street; and WHEREAS, it is the desire of the City of Brooklyn Center to reconstruct the roadway to the minimum design width as specified in State Aid Operations Rules, Chapter 8820.9935, for a 2 -lane Collector classification. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of • Brooklyn Center that the Commissioner of the Minnesota Department of Transportation is hereby requested to consider at the earliest possible date a variance from the published minimum width required for a 2 -lane Arterial roadway as specified in State Aid Operations Rules, Chapter 8820.9935, and allow the use of State Aid funds for the construction of a 32 foot wide roadway which accommodates parking along one side. Date Todd Paulson, Mayor ATTEST: Deputy Clerk The motion for the adoption of the foregoing resolution was duly seconded by member favor thereof: and upon vote being taken thereon, the following voted in and the following voted against the same: whereupon said resolution was declared duly passed and adopted. i EXCERPTS FROM STATE AID OPERATIONS RULES CHAPTER 8820 8820.3300 VARIANCE Subpart 1. Written requests. A formal request by a political subdivision for a variance from this chapter must: A. be submitted to the commissioner in writing in the form of a resolution; B. identify the project by location and termini; and C. cite the specific part or standard for which the variance is requested and describe the modification proposed. Subp. la. Additional information. Additional information needed: A. index map; B. typical section; (1) inplace section; (2) proposed section; C. reasons for the request; D. the economic, social, safety, and environmental impacts which may result from the requested variance; E. effectiveness of the project in eliminating an existing and projected deficiency in the transportation system; F. effect on adjacent lands; G. number of persons affected; and H. safety considerations as they apply to: (1) pedestrians; (2) bicyclists; (3) motoring public; and (4) fire, police, and emergency units. Subp. 2. Notice of request. The commissioner shall publish notice of variance request in the State Register and shall request comments from interested parties be directed to the commissioner within 20 calendar days from date of publication. Subp. 3. Decision. The commissioner shall base the decision on the criteria in part 8820.3400, subpart 3 and shall notify the political subdivision in writing of the decision. The commissioner shall require a resolution by the recipient of the variance that indemnifies, saves, and holds harmless the state and its agents and employees of and from claims, demands, actions, or causes of action arising out of or by reason of the granting of the variance. The recipient of the variance shall further agree to defend at its sole cost and expense any action or proceeding begun for asserting any claim of whatever character arising as a result of the granting of the variance. Subp. 4. Contested case hearing. Any variance objected to in writing or denied by the commissioner is subject to a contested case hearing as required by law. i SA: MS s 161.082; 161.083; 162.02; 162.09; 162.155; Laws 1983 c 17 HIST: 8 S 2146; 15 SR 2596 1 8820.3400 ADVISORY COMMITTEE ON VARIANCES. Subpart 1. Appointment. The commissioner PP may appoint a committee to serve as required to investigate and determine a recommendation for each variance. No elected or appointed official that represents a political subdivision requesting a variance may serve on the committee. Subp. 2. Membership. The committee shall consist of any five of the following persons: not more than two county highway engineers, only one of whom may be from a county containing a city of the first class; not more than two city engineers, only one of whom may be from a city of the first class; not more than two county officials, only one of whom may be from a county containing a city of the first class; and not more than two city officials, only one of whom may be from a city of the first class. The committee must have at least two elected officials as members. Subp. 3. Operating procedure. The committee shall meet on call from the commissioner at which time they shall elect a chairperson and establish their own procedure to investigate the requested variance. The committee shall consider the: A. economic, social, safety, and environmental impacts which may result from the requested variance; B. effectiveness of the project in eliminating an existing and projected deficiency in the transportation system; C. effect on adjacent lands; D. number of persons affected; E. effect on future maintenance; F. safety considerations as they apply to pedestrians, bicyclists, motoring public, and fire, police, and emergency units; and G. effect that the rule and standards may have in imposing an undue burden on a political subdivision. Subp. 4. Recommendation. The committee after considering all data pertinent to the requested variance shall recommend to the commissioner approval or disapproval of the request. SA: MS s 161.082; 161.083; 162.02; 162.09; 162.155; Laws 1983 c 17 HIST: 8 SR 2146; 17 SR 1279 2 Minnesota Department of Transportation 16 Metropolitan Division Waters Edge Building 1500 West County Road B2 . O Roseville, Minnesota 55113 June 22, 1994 Mr. Mark J Maloney Brooklyn Center City Engineer 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 SUBJECT: Humboldt Ave Capacity Analysis Dear Mr. Maloney: As requested, I have reviewed the City's request to reconstruct Humboldt Ave to a width of 32' with parking on one side, for conformance with the State Aid Operations Rules. This review was based on the traffic volume information and capacity analysis submitted May 19, 1994. ® Based on section 8820.9950 of the State Aid Rules, Urban Roadway Classification, and the 20 year projected ADT of 12,000, Humboldt Ave is classified as an arterial roadway for the purposes of determining minimum State Aid design standards. With this projected ADT, Humboldt could be classified as low or high density. A low density arterial could be designed for either 2 or 4 through lanes, whereas, a high density arterial could be designed for either 4 or 6 through lanes. The minimum geometric design standards for reconstruction of an urban roadway with a design speed of 30 or 35 MPH, are specified in part 8820.9935 of the State Aid Rules. Assuming a 2 -lane design, the minimum width, face -to -face of curbs, would be 30 feet with no parking either side. If parking were allowed on one side, the minimum width would be 36 feet, and a minimum width of 42 feet would be required if parking were allowed on both sides. These dimensions are based on 11 foot traffic lanes, and each would be increased by 2 feet if the recommended 12 foot traffic lanes were used; however, this is not required. Under section 8820.9950, provisions are made for using a lower classification if a capacity analysis demonstrates that a level of service IUD" or better can be achieved at the higher traffic volume. The level of service analysis prepared for this roadway, shows levels of service of "E" and "F "; therefore, if the City wishes to utilize State Aid funding for the reconstruction of this roadway, the design must be in accordance to the minimum geometric design standards as described above. An Equal Opportunity Employer June 22, 1994 Mr. Maloney Page 2 Since State Aid funds must be expended in accordance with State Statute and the provisions of the State Aid Operations Rules, the State Aid Engineer would not be able to approve the expenditure of State Aid funds to reconstruct Humboldt Ave to a width of 32 feet, with parking on one side, unless a variance is granted. The State Aid Rules provides for a variance procedure, by which the City may formally request a variance to the State Aid Rules. The Variance Committee usually meets 4 times per year and consists of 5 city and county officials and /or engineers, chosen from around the State. If the City wishes to request a variance from a specific State Aid Rule, in this case 8820.9935, please prepare a written request to the Commissioner in accordance with the procedure outlined in 8820.3300, and submit to Mr. Patrick Murphy, Division Director, State Aid for Local Transportation. I am in receipt of your June 20, 1994 letter in which you requested a response to two specific questions: 1. I was not specifically awaiting any further information from the City (or Westwood) with regard to the LOS analysis. I apologize for the length of time in responding to your May 19th letter; however, limited personnel and increasing workloads do not always allow us to review and prepare the prompt responses I would prefer. 2. Since the variance request must cite the specific part of the Rules for which the variance is requested, it would have been inappropriate to submit a variance request prior to determining the roadway classification and geometric design standards required. I understand how difficult this issue is for all involved, from the City staff who have to determine what to do with the road, to the residents who want less traffic volume, to the motorists who now use this road. However, I would like to reaffirm that the State Aid Street System is selected by the City, and designated in accordance with law and established criteria, to provide additional funding for improvement and maintenance of those roads in the City with heavier traffic volumes and which provide an integrated street system. It is ultimately up to the City whether or not to use State Aid funds to improve Humboldt Ave. Please feel free to contact me if you have any questions or if I can be of any assistance. inc rely, 11 , Mary V.131ieringer, PE Asst o Aid Engineer Metro Division 1 � ' 69 TH AVE N O I I Z w ; TODAY 0 m n PREVIOUS or i SUGGESTED Council Meeting Daft 6/27/94 3 C ity of Brooklyn Center Agenda Item Numbe Request For Council Consideration • Item Description: Report on COPS Program /Humboldt Avenue Substation Department Approval: ���U�e Gerald G. Splinter, City Manage Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached Yes ) Attached please find a copy of notes from a meeting held, as requested by the City Council, with the Humboldt Avenue Substation volunteers regarding the effect of reassignment of police personnel to the substation and the police department's COPS program. I have met with police department personnel relating to this matter. There is still significant support by the volunteers at the substation for assigning specific • officers to COPS assignments. There is also disagreement among the police department personnel as to which is the best course on which to proceed. I recommend the following course of action: 1. We should suspend the special assignment of COP officer duty for the summer and assign such contacts at the substation and apartments and other duties among various officers available on the shifts needed. I believe the Community Services Sergeant in charge of this program can provide continuity for the summer months. 2. Departments should analyze through the summer and evaluate the future direction of the COPS program and resolve some of the conflicts between the need to do special hot spot crime enforcement with specifically assigned officers and involvement of all officers in the COPS program; evaluate the general philosophy of Community Oriented Policing and how all of our officers on our department can be involved in this process; and evaluate the proposal from the Brooklyn Center Independent School District #286 for a permanent school liaison officer at Brooklyn Center Junior - Senior High (evaluate how this program can possibly be integrated into the COPS program). I believe the department, in evaluating these various elements, should conduct a participatory process which involves all aspects of the programs and personnel from various elements of the department. I believe it's important to review all aspects of police service delivery within the department before we make any future changes. I also believe it is necessary at this time to emphasize the evaluation of how we should gain more overall department involvement in COPS activities and still retain the ability to specially assign officers to • special assignments in problem areas. Recommended City Council Action: The City Council direct the City Manager to direct the police department to prepare an analysis of the elements mentioned in this memorandum and report back by September 1, 1994, or sooner if possible. ��pphCLYN CEy BROOKLYN CENTER POLICE DEPARTMENT POLICE MEMORANDUM TO: Trevor Hampton, Chief of Police FROM: Joel Downer, Captain DATE: June 17, 1994 SUBJECT: June 16, 1994 Meeting at Humboldt Avenue Substation Chief Trevor Hampton, Captain Joel Downer and Sergeant Frank Roth met with Humboldt Avenue Substation volunteers on Thursday, June 16, 1994 at 1900 hours. The Chief opened the meeting by discussing the COPS program in general and the Humboldt Avenue Substation staffing in specific. The volunteers strongly advocated keeping officers on long -term assignments in Community Oriented Policing. The Chief concurred and stated it would be most effective to have those personalities which best suit the needs of the community they serve. The volunteers felt they were not receiving enough information from the police department regarding the decentralization of Community Oriented Policing and the reassignment of Officers Nadeau and Carlson. Sergeant Frank Roth will improve communication with i substation volunteers by informing volunteers of police department memorandums which announce changes in the Community Oriented Policing program and service to the Humboldt Avenue Substation. Volunteers asked about the hiring process; and, the Chief explained that the two additional officers were linked to the Federal Grant which w denied. as de ed. The Chief further explained that we were in the process of hiring recruits to fill the two authorized positions. The Chief also announced that the next shift bid would require officers to bid an area, as well as a shift, which would maintain consistency and continuity in the officers serving specific areas of the city. The meeting was adjourned at 2015 hours. deh Council Meeting Date e 7 / 31 City of Brooklyn Center A g enda It. Nu be, ZO / Request For Council Consideration Item Description: AUDITOR'S MANAGEMENT LETTER AND MANAGEMENT RESPONSES Department Approval: CAALIZ& , Charles Hansen, Finance Director Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached _) At the June 13, 1994 City Council meeting, Cliff Hoffman of Deloitte & Touche made a presentation on the audit of city operations for the year 1993. He reviewed several reports, including a Management Letter which made five recommendations regarding administrative and operating issues. The staff also handed out a memo of Responses to the Auditor's Management Letter. Councilmembers requested that this be put on a worksession agenda for further discussion. The next worksession was June 21, which already had a very full agenda. It was decided not to add this item to the agenda. At the June 21 meeting, the request was again made to discuss this at a worksession. I have reviewed the calendar and found that I have previously scheduled vacation time which conflicts with the next two scheduled worksessions. Rather than allow this item to become stale, we decided to bring it to the City Council on June 27th. Recommended City Council Action: Discuss the Auditor's Management Letter and the Staff Responses. • • Deloifte & Touche /0 400 One Financial Plaza Telephone: (612) 397 -4000 120 South Sixth Street Facsimile: (612) 397 -4450 Minneapolis, Minnesota 55402 -1844 April 8, 1994 Honorable Mayor and Members of the City Council City of Brooklyn Center, Minnesota In planning and performing our audit of the general purpose financial statements of the City of Brooklyn Center (the City) for the year ended December 31, 1993, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing an opinion on the general purpose financial statements and not to provide assurance on the internal control structure. In connection therewith, we submit this Commentary Report containing our comments, observations, and recommendations concerning administrative and operating matters which resulted from our audit of the City's 1993 general purpose financial statements. Our observations and recommendations are presented under the following main captions: I. Administrative and Operating Matters II. Status of Prior -year Recommendations This report is intended solely for the information and use of the Mayor and City Council, management, and others within the organization. We will be pleased to discuss these recommendations with you and, if desired, to assist you in implementing any of them. Yours truly, T Deloittebuche Tohmatsu International ADMINISTRATIVE AND OPERATING MATTERS Cash Collateralization: Observation: Minnesota State Statute 118.01 Subdivision 2 stipulates that the City's depository institution must collateralize deposits in excess of FDIC insurance coverage. Such collateral must have a fair market value of at least 110% of the amount of excess deposits if collateralized by qualified investments other than notes secured by first mortgages. At December 31, 1993, the City's deposits appeared to be adequately collateralized. However, on three of the four dates we selected when the City had large cash deposits, we found collateral pledged by the City's depository institution to be less than 110% of the City's excess deposits. The collateral deficiency on the dates selected was corrected within one to two days. Recommendation: We recommend the City closely monitor the adequacy of collateral on hand throughout the year, particularly when large deposits are made. Uncollected Property Taxes. Observation: In recent years, tax abatements and delinquencies have caused the City to experience significant q tY P gn shortfalls in its property tax collections, compared to the amounts originally certified. These shortfalls have ranged from 2.42% to 7.44% in the last four years. In adopting the 1994 budget, the City incorporated a 2% estimated uncollectible allowance into the tax levy. In other words, the City certified an amount to Hennepin County that was 2% more than the amount recognized in the budget. Recommendation: We recommend the City continue to monitor the level of tax abatements and delinquencies and consider increasing the estimated uncollectible allowance (e.g., 3% for the 1995 budget and 4% for the 1996 budget) if the adverse experience continues. General Fund Programs. As state revenue sources are decreased, the State will be looking at cities' financial conditions in an effort to cut state spending. This procedure has already been implemented with school districts whereby the State looked at fund balances, particularly in the general fund, as an area to potentially decrease funding. The general fund of the City has a positive fund balance of $4.6 million as of December 31, 1993 which is approximately 47% of general fund expenditures, as compared to $5 million and 52% for 1992. The decrease resulted from the transfer of assets to establish the Internal Service - Central Garage Fund to account for the acquisition and maintenance of city vehicles. However, several 2 programs remain in the fund which directly or indirectly benefit the community or the City as a whole. These programs could be transferred to other fund types such as enterprise, special revenue, or internal service, where applicable. Recommendation: To avoid possible future funding decreases from the State, the City should consider moving additional programs into other funds. The City should also consider establishing internal service funds for data processing and other central services and an enterprise fund for recreation programs. These transfers would help decrease the overall general fund balance and more accurately reflect the nature of the programs. Worker's Compensation Self Insurance: Observation: Some cities self - insure for certain types of risk (i.e. worker's compensation) up to certain limits and, as a result, have experienced savings compared to purchasing standard insurance policies. However, such a program also exposes the City to higher risk and administrative work. Even with a safety program, years with high losses will occur. Settling claims with employees can become very personal, controversial, and time consuming if handled by City staff. Despite these problems, the potential savings make this worth considering and it presents another opportunity to transfer assets from the General Fund to set up a reserve in the Self- Insurance Fund. Recommendation: We recommend the City consider the costs/benefits of a self- insurance program for worker's compensation. Such a program could be established by implementing the following procedures: 1. Contract with a third party administrator to gain insurance expertise and objectivity in settling claims. 2. Have the third party administrator calculate a reserve requirement and transfer that amount from the General Fund to set up the Self - Insurance Internal Service Fund. 3. Charge the various funds the same worker's compensation rates that an insurance company would until several years experience are gained to justify lowering them. Governmental Accounting Standards Board Statement No. 20. Observation: The Governmental Accounting Standards Board (GASB) issued Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting. This statement requires that in 1994, the City adopt in its proprietary funds all FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins issued on or before November 30, 1989, unless they conflict with or contradict GASB pronouncements. The City may also elect to adopt all such pronouncements issued after November 30, 1989, if it desires. 3 Recommendation: The City currently follows all applicable guidance issued before November 30,1989. The City should consider whether to elect adoption of the pronouncements issued after November 30, 1989. 4 STATUS OF PRIOR -YEAR RECOMMENDATIONS Cash and Investments Management: In 1992, significant investments were included in Custodial Credit Risk Category 3, the greatest level of custodial risk. In 1993, the City entered into a trust arrangement and all investments currently qualify as Category 1. Cash Collateralization: The comment is repeated in the current -year letter. Submission of Outstanding Obligations to Hennepin County. In 1992, the report was submitted after the due date. In 1993, the report was submitted prior to the due date. Obtainment o f Performance Bonds: In 1992, it was noted that a performance bond was not obtained for a fire engine contract. No instances of noncompliance were noted in 1993. LOGIS: In 1992, it was recommended that an audit of the general computer controls of LOGIS be requested. The City is currently considering the cost benefit of such an audit. General Fund Programs: The comment is repeated in the current -year letter. General Accounting Standards Board Statement No. 14, The Financial Reporting Entity. Requirements relating to the statement were implemented in the 1993 CAFR. 5 MEMORANDUM TO: Mayor Todd Paulson Councilmember Celia Scott Councilmember Dave Rosene Councilmember Barbara Kalligher Councilmember Kristen Mann FROM: Charles Hansen, Finance Director DATE: June 13, 1994 RE: RESPONSES TO THE AUDITOR'S MANAGEMENT LETTER CASH COLLATERALIZATION: Marquette Bank Brookdale maintains a level of pledged collateral sufficient to cover the balance in the City's account at all times except when tax settlements from Hennepin County are deposited. After a tax settlement is deposited at Marquette, it takes a day for them to collect the money through the banking system. We are then able to purchase investments the next day. After this comment appeared in last year's management letter, I called Marquette prior to each tax settlement and asked them to pledge additional collateral for the time that the extra money was in our account. This didn't work out for various reasons. From now on, I will hand carry the settlement check to First Bank's downtown office where we purchase our investments. This should eliminate the need for the money to sit in an account overnight. Hennepin County has advised me that in the near future they will begin to wire transfer tax settlements to cities. This will eliminate the need for hand carrying checks to the downtown bank. UNCOLLECTED PROPERTY TAXES: The City Assessor, Mark Parish, closely monitors the number and magnitude of property tax appeals that are filed. That information, along with the first half 1994 tax settlement in July, will give us a good indication of the shortfall we will experience this year. We will then develop a recommendation for the percentage of estimated uncollectible property taxes to incorporate into the 1995 budget. GENERAL FUND PROGRAMS: The city transferred the vehicle maintenance department to an internal service fund as part of the 1994 budget. This improves our cost accounting and facilitates a program budget, while moving a substantial part of the General Fund's fund balance to the internal service fund. The staff is investigating other possible transfers from the General Fund, but doesn't feel .the recreation programs are a good candidate for an enterprise fund. GENERAL FUND PROGRAMS: (continued) When we did the transfer to set up the Central Garage Fund, there wasn't time to adequately analyze the size of the needed transfer. We based the transfer upon the depreciation on the historical cost of the vehicles which would have been charged if they had been in a Central Garage Fund all along. No provision was made for inflation in vehicle prices since they were last purchased. We are doing that calculation now and would like to come back to the City Council with a report this summer recommending a further transfer from the General Fund to the Central Garage Fund for past inflation in vehicle prices. This would meet the Auditor's recommendation to get money out of the General Fund while also correcting the Central Garage's funding level. WORKER'S COMPENSATION SELF INSURANCE: The staff has had some very preliminary discussions of this concept with the City's insurance advisors. We believe there is merit and good potential to the concept. If the idea is pursued, the auditor's recommendations for hiring an outside administrator and charging the same worker's compensation rates that an insurance company would will be critically important to the success of the program. GOVERNMENT ACCOUNTING STANDARDS BOARD STATEMENT NO. 20: The city is in compliance with all Government Accounting Standards Board statements and pronouncements now in effect. We will comply with all future statements and pronouncements as they become effective. Council Meeting Date (o R - 7 19 - 31 City of Brooklyn Center Agenda Item Numbe • Request For Council Consideration Item Description: AUDITOR REQUEST FOR OR PROPOSALS Department Approval: Charles Hansen, Finance Director Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached _) Last year, the City Council asked the staff to do a Request for Proposals (RFP) for audit services for the audit that we just completed. The subject came up so late in the year that staff recommended that it not be pursued. Instead, a one year extension was negotiated with Deloitte & Touche and the promise made that a RFP would be done this year. The process must be started in the near future in order to do an RFP this year. Two issues need to be decided at this time. First is whether or not to do the RFP. Councilmember Dave Rosene stated at the June 13th meeting that he was satisfied with Deloitte & Touche and that a RFP may not be needed. The second issue is determining the roles the City Council, the staff, and possibly the Financial Commission should play in the process. Those roles will have some impact on the writing of specifications for the RFP. There is no hard and fast rule on how long to retain the same auditors. Changing too often is inefficient since there is a great deal of extra work for both the auditors and the staff in the first year audit. Deloitte & Touche has done seven audits, which is long enough for us to have benefited from the efficient of the repeat engagements. It is also possible to k' auditor o 1 n i i y p keep an to long. This s especially true if the auditor fails to rotate different personnel to the engagement. Deloitte & Touche rotates its personnel. The auditor the City had prior to Deloitte & Touche was with us for well over twenty years. That was probably too long. Recommended Cit y Council Action: Discuss the Audit Request for Proposal process. • Council Meeting Date 6/27/94 City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: Consideration of a Resolution to Authorize Certain Appraisal Activities for City Purposes by Employees in the Assessing Division Department Approval: rj Mark P. Parish, City Assessor Manager's Review /Recommendation: 7 No comments to supplement this report . Comments below /attached Summary Explanation: (supplemental sheets attached ) Employees in Assessing have routinely been consulted for valuation opinions on City matters by other departments. Examples would include value added analyses for special assessment projects, projected costs of right -of -way acquisition, and valuation analyses for the EDA /HRA. While the City is certainly aware of a otential for either a real or perceived conflict of interest at times it is more cost effective P P , and timely to receive an in -house opinion, rather than contracting with a private appraisal firm. This is especially true on preliminary estimates or proposed projects that may or may not proceed. In the 1993 legislative session, certain appraisal activities were prohibited for Assessors, Appraisers, and other persons employed by an assessment jurisdiction. The intention was to prevent assessment employees from providing outside appraisal opinions that were in conflict with their primary employment responsibilities. (Example, preparing mortgage appraisals for a private lender.) The 1994 legislature clarified this in amending Minnesota Statutes, Section 270.41, Subdivision 5. This amendment specifically authorizes certain appraisal activities which are related to condemnations, right - of -way acquisitions, or special assessments. This legislation further requires that the City Council pass a Resolution specifically authorizing these activities. As mentioned previously, the City is cautious regarding potential conflicts. Therefore, in many instances, an outside appraisal firm is employed on the City's behalf. However, it is in the best interest of the taxpayers of the City of Brooklyn Center to utilize the expertise available within the Assessing Division for valuation matters. Both the City Assessor and Senior Appraiser currently hold appraisal licenses in addition their assessing licenses. Under Minnesota Statutes, Chapter 82B, which regulates appraisal activity, one cannot render an opinion of value without being a licensed appraiser. The City will remain in compliance with all relevant Minnesota Statutes by passing the attached Resolution while continuing the effective use of staff resources and minimizing taxpayer cost. Recommended City Council Action: Favorable consideration of the attached Resolution. /lam Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION TO AUTHORIZE CERTAIN APPRAISAL ACTIVITIES FOR CITY PURPOSES BY EMPLOYEES IN THE ASSESSING DIVISION WHEREAS, Minnesota Statues, Chapter 270.4 1, Subdivision generally prohibits an Assessor or any assessing employee whose duties include valuing or classifying property for property tax purposes from making appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report, as defined in Minnesota Statutes 82B, within the assessment jurisdiction where the individual is employed; and WHEREAS, the prohibitions of this statute could be interpreted to include appraisals prepared on behalf of and at the request of the governmental unit that has employed the Assessor or other employee; and WHEREAS, the 1994 Legislature amended Minnesota Statute 270.41, Subdivision 5 to allow Assessors and other qualified employees to perform certain real estate appraisal activities in the City on behalf of the City provided that the governing body adopts a formal resolution specifying the purposes for which the work will be done; and WHEREAS, the Brooklyn Center City Council finds that is in the best interest of the City and its citizens for qualified employees of the Assessing Division to perform real estate activities on behalf of the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that qualified employees within the Assessing Division who hold real estate appraisal licenses be and hereby are allowed to perform real estate appraisal activities in and on behalf of the City which are related to condemnations, right -of -way acquisitions, or special assessments. Date Todd Paulson, Mayor ATTEST: Deputy 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. Council Meeting Date 6/27/94 =3[ City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: AMENDING THE 1994 GENERAL FUND BUDGET TO IMPLEMENT AUTOCAD AUTOMATED DRAFTING Department Approval: Diane Spector, Dir cto of Public Services Manager's Review /Recommendation: i No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached Yes ) The Engineering division requested in the 1994 data processing budget funds to implement AutoCAD ® automated drafting. Because of budget constraints, this request was not recommended for funding. Implementation of AutoCAD has always been a high priority, and was listed in the MIS strategic plan for implementation in 1993. This RFCC is a request to utilize unexpended funds in the 1994 Data Processing capital outlay budget to implement AutoCAD this year, rather than request the item for 1995 and miss another construction season. The unexpended funds are a combination of funds remaining from our GIS conversion from U1tiMap to ArcInfo /ArcView, and from funds budgeted for a pen -based computer application for the sign shop. I have attached a memo from City Engineer Mark Maloney regarding AutoCAD implementation. In summary, the primary reasons we have in the past and are now recommending implementation are: • Improved productivity. Designing, drafting, and calculating by hand is a very labor - intensive process. The time it currently takes to prepare plans limits the number of projects which can be under preparation at any one time. It also lengthens the "turnaround time" between approval of a project and when the plans and specifications are complete and ready to bid. • Improved efficiency. Multiple options for layouts can be easily and quickly prepared, such as the four options prepared by the City's consultant for Humboldt Avenue. Another advantage is the ability to plot the drawings to any scale. For the two street improvement projects this summer, bid copies of the 77 sheets of plans were made on 11 "x17" paper, rather than plan-size paper, • resulting in a significant cost savings in paper. However, to do that, the full -size hand -drawn plan sheets were taken to an engineering reproduction firm, which photographically reduced the plan sheets to 11 "x17" masters. This additional cost virtually negated the cost savings in paper. With AutoCAD, we merely would have plotted the drawings to that scale. • Applicability for uses other than improvement project plans. This technology would be used to • maintain the standard detail drawings for construction, which are utilized by all City departments, developers, contractors, etc. Exhibits, graphics, charts, traffic analyses, and other types of presentation items could be prepared this way. • A stepping stone to future technology. Within the next few years, if the City will be undertaking increasing numbers of street and utility improvement projects, it will be wise to consider moving toward a "total station" concept. Survey data would be collected directly by the survey instrument, and then uploaded into AutoCAD. This eliminates the tedious and error -prone process of taking and reducing manual field notes. Again, it reduces the amount of time needed to collect and plot baseline data, and increases the number of projects which could be underway at any one time. Cost of Implementation and Funding I have summarized below the funds which are available in the 1994 Data Processing capital budget, and the cost of implementation. I also show below the cost of two additional items which were deleted from the Data Processing budget request due to lack of funds. These two items, plus AutoCAD implementation, were recognized by the Data Processing Committee as the next highest priority items to be considered for funding from any "excess funds." The "excess funds" became available first because the GIS conversion was much less costly than anticipated. We had budgeted considerable funds for conversion of the geographic database; after much research and trial and error, LOGIS' GIS analyst is now confident that he can do this conversion himself, rather than contract it out. In fact, he is midway through this conversion now. Second, because the company whom we had been relying upon to program specialized applications for pen -based computers is no longer in that business, the funds available for purchasing a pen -based computer and a specialized application for the sign shop need no longer be dedicated for that purpose. It is my recommendation, and the Data Processing Committee agrees, that we instead in 1995 request a portable computer for the sign shop. I am recommending that the purchase wait until 1995 rather than purchasing it mid -year; first, to take advantage of an additional half - year's advances in the portable market. Six months from now, portables will provide additional computing power for less money. A second reason is that the sign shop staff are now out in the field until the weather is too cold for painting and installing signs, and they will not be able to begin conversion of their sign database to the Federal Highway Administration database until winter. As the table below indicates, there are sufficient funds available to purchase the hardware and software needed for this implementation, plus the purchase of two other items which were not funded in 1994. However, there is some uncertainty regarding the amount of training required for AutoCAD, and cost. Since the Public Utilities would also receive benefit from AutoCAD, future utility projects being prepared using the system, I would propose that all three utilities contribute to the cost of implementation. My recommendation is that the General Fund could purchase the hardware and software, and the cost of training be shared by those utilities. Funds Available and Costs of Implementation • AutoCAD and Other High- Priority Data Processing Needs Remaining funds, GIS conversion item $8,961 Funds budgeted for sign shop pen -based PC $9,105 'TOTAL FUNDS AVAILABLE $18,066 AutoCAD (state contract), and utilities $7,960 AutoCAD workstation DX2/66, 16 MB, 20" monitor (state contract) $5,743 Subtotal, AutoCAD implementation $13,703 Additional Items Recommended By Data Processing Committee Replace printer, Police Department $1,890 Standard PC $2,25 0 TOTAL PROPOSED EXPENDITURES 17 843 NET FUNDS LEFT $223 Additional Cost of Implementation: Training $1,000 -2,500 Recommended City Council Action: A resolution amending the 1994 General Fund budget is attached for Council consideration. MEMORANDUM June 21, 1994 TO: Diane Spector, Public Services Director FROM: Mark Maloney, City Engineer Mk) SUBJ: AutoCAD Implementation During the development of this year's street and utility improvement projects the Engineering Department needed to put in a large number of overtime hours in order to design and prepare plans for bidding. With our current level of technology, or lack of, we prepare the detailed engineering plans manually; hand or template- assisted drawings, in ink, on mylar drafting film. This labor - intensive process, while having been the norm for literally one hundred years, has been largely replaced in the private sector (and most larger, progressive public entities) by computer aided design/drafting. In recent years, we have generically been referring to these types of design/drafting products or environments as AutoCAD, which is in fact actually a specific product name. AutoCAD is currently utilized by all engineering consultants who have worked on Brooklyn Center projects over the last five years, and is installed in a number of metro area municipalities. While AutoCAD provides the drafting environment, the "intelligence" or design capability is actually obtained through the use of a third party group of products from Softdesk. These products work together on a PC workstation, not unlike what has already become the standard for Brooklyn Center. There never has been any question as to the benefit of moving in the automated drafting /design direction; it has previously been identified as a tactical goal in the MIS Plan for the Public Works department. As you know, the 1994 Data Processing budget originally included a request for funds for both conversion from U1tiMap, the City's previous automated mapping system, to ArcInfo /ArcView, and implementation of AutoCAD automated drafting. Because of funding limitations, the AutoCAD portion of the request was not part of the budget which was ultimately approved. In March of this year the Data Processing Committee reconsidered the acquisition of AutoCAD, and recommended to the City Manager its implementation. Because of various issues concerning the recent reorganization of this department, we have waited until now to proceed with the implementation. Accordingly, I have received a proposal from the firm Digital Resource for the AutoCAD environment, Softdesk software and training. The prices quoted in the proposal for AutoCAD represents the State of Minnesota contract price, and the price quoted for the Softdesk software reflects a discount for sale to State or Local Governments. Digital Resource is the only authorized reseller of the Softdesk software in the state, and as such, have a great deal of experience in automated drafting /design installations for both private and public sector organizations. I've attached a copy for reference. C0fAMjrEXeMDED DRArrmr, OESICN ANN ENGNEERNG June 16, 1994 Mr. Mark Malorrey, City. Engineer CITY OP BROOKLYN CENTER 6341 Shingle Creek Parkway Brooklyn Center, MN .55430 Mark: Thank you for giving us the opportunity to submit this proposal on AutoCAD ! Softdesk Software and Training. Digital Resource is an authorized AUTOCAD and SOFTDESK reseller. We are the only Softdesk reseller authorized to sell Softdesk Civil Software in the State of Minnesota. Likewise we also operate the only Softdesk Authorized Training Center in the State of Minnesota. Our training centers have been qualified by Softdesk, Inc, as "Softdask Authorized Training Centers" for all Softdesk software products. We are pleased to have achieved this level of recognition and distinction. It is our goal to. provide you with the very best AutoCAD and Softdesk training, support, and total system services ... all at the very best competitive prices. Thank you for considering Digital Resource, Mark. Please let me know if you have any questions or need any additional information. Sincerely, GITAL* RESOURCE m; L letter President 0 AUn4ORaM Oj*UR 9555 James Avenue South • Bloomington, Minnesota 55431 • 612'885.0116 # Fax 612'885-0119 Minneapolis • Milwaukee • Los Angeles Proposal Prepared for City of Brooklyn Center by Jim Lostetter Digital Resource June 16, 1;94 This proposal is the property of Digital Resource and City of Brooklyn Center and is not to be viewed by anyone who is not employed by either of the above organizations. Digital Resource makes no warranty, either expressed or implied, including but not limited to any implied warranty of merchantability or fitness for a particular purpose, regarding the items proposed herein and makes such equipment and/or software available on an "as-is" basis only. in no event shall Digital Resource be liable to anyone for special, collateral, incidental, or consequential damages in connection with or arising out of the purchase, licensing, or use of this equipment and/or software. Prices quoted are valid through July 16, 1994 Softw�r� AutoCAD Softw re A uto C AD Release 12 Software with AME (DOS or Windows version) Includes Manuals, Tutorials, Template .& 3 months telephone support Quantity 1 (State of Minnesota Contract Price) $ 2,594.00 SoMesk Software Softdesk Release 12,1 Civil Software — Civil Roadway Bundle for DOS & Windows consisting of: Hydrology Tools, LOGO, Survey, DTM, Advanced Design & Productivity Tools Includes Manuals, Tutorials & 3 months telephone support Quantity 1 (State & Local Govt Discount Price) $ 4,879.00 Trainina Aut_- QCADI$aftdesk On -Site Training - = 2 Students at the City of Brooklyn Center Engineering Department or at Digital Resource Training Center. -- AUTOCAD 4 Hours TOTAL $240.00 — COGO 6 Hours TOTAL $360.00 SURVEY 8 Hours TOTAL $480.00 HYDROLOGY TOOLS 8 Hours TOTAL $480.00 DTM 6 Hours TOTAL $360.00 ADVANCED DESIGN 12 Hours TOTAL $720.00 TOTAL TRAINING 44 Hours TTL $2,640.00 Support Seryl Digital Resource offers comprehensive on -site support services for total system training, advanced AutoCAD training and/or customization and maintenance. We provide these services at a rate of $85.00 per hour. AutQCAD Software Phone Support is available for $50.00 per month, billable quarterly, after the initial. 3 month period. Technical (Hardware) Support Rate: $85.40 per hour. System Installation (All, Quoted Items) I Integration Digital Resource provides the following services at no additional cost to you. — Installation of controller cards for text and color graphics display systems. (Main System). — Installation of the RAM memory in the computer. — Initialization, partitioning and formatting of the computer hard disks. -- Installation of MS -DOS and Windows 3.1. — Installation of AutoCAD & Softdesk Software. System components will be assembled as required and complete system as quoted will be operational in our facility. All hardware and software will be tested for satisfactory operation, including a minimum of 24 hours power burn -in prior to installation at your facility. Upon installation at your site, the system performance will again. be verified. Warranties Digital Resource passes through to the end -user the product warranties provided by the respective manufacturers. Unless otherwise specified by the manufacturer, a one year warranty, 100% parts and labor applies. No other warranties are provided. Terms Payment in full upon delivery. Prices reflect a 2% cash discount. Delivery -7 days of receipt of order. 3 y ter eceip r. e FOB Factory, freight prepay and add to invoice Sales Tax State Sales Tax will be added to invoice for hardware and software. (No tax on training) ACCEPTED SY: DATE; Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AMENDING THE 1994 GENERAL FUND BUDGET TO IMPLEMENT AUTOCAD AUTOMATED DRAFTING WHEREAS, surplus funds are available in the 1994 General Fund Data Processing budget for capital outlay, due to the lower cost than expected for conversion of the City's GIS system, and the recommendation that a pen -based computer system not be purchased; and WHEREAS, the City's Data Processing Committee recommends that the Council consider utilizing those surplus funds for data processing outlays which were of high priority but were not recommended for funding due to budget constraints; and WHEREAS, those additional data processing capital outlays include the purchase of hardware and software to implement AutoCAD automated drafting, at a cost of $13,703; the replacement of a printer in the Police Department, at a cost of $1,890; and the purchase of an additional PC, at a cost of $2,250. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the use of surplus funds to purchase additional priority data processing hardware and software, as recommended by the City's Data Processing Committee, is hereby approved. Date Todd Paulson, Mayor ATTEST: Deputy 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. Council Meeting Date 6/27/94 City of f Brooklyn Center Agenda Item Numbe Request For Council Consideration Item Description: RESOLUTION AMENDING THE 1994 PAY PLAN, AUTHORIZING UPGRADE OF ONE ENGINEERING SECRETARY POSITION TO PUBLIC SERVICES ADMINISTRATIVE AIDE Department Approval: 5z�, Jn Nape / Spector, Directo o Public Services Manager's Review /Recommendation: g - No comments to supplement this report below /attached Summary Explanation: (supplemental sheets attached Within the past few years, as the Public Services Department has taken on new challenges, the need for • additional middle -level administrative assistance has grown. We anticipate continued growth in these activities. To meet those challenges, I request the Council consider upgrading one Engineering Secretary position to Public Services Administrative Aide. Some examples of the types of activities now performed by one of our Engineering Secretaries, which are of a greater responsibility level than clerical tasks, include: • Managing programs such as diseased tree removal, reforestation, and weed cutting require extensive public contact, ability and authority to make decisions. Management of these programs requires the ability to provide direction to vendors, contractors, etc. • Assisting in the financial management of the department, such as purchasing; monitoring spending on contracts for professional services; and tracking status of property acquisition for improvement projects, and coordinating payments to property owners. • Coordinating volunteer services. The Adopt- A- Park/Trail /Street program is very successful, but requires a staff commitment to coordinate activities. This year's Arbor Month celebration with the students at Earle Brown Elementary is an excellent example of activities that we'd like to encourage, perhaps on a rotating basis. Other programs we'd like to enhance include encouraging formation of Park Watch groups and increasing participation by gardening clubs and others in developing and maintaining flower beds in parks and other areas. One resident has spearheaded the addition of wildflower beds in the Arboretum and along 69th Avenue. • Working with the Communications Coordinator to develop and coordinate public information programs regarding street and utility improvements, water quality issues, and other Public Services programs. We are now sending out mini newsletters to residents in the areas where street improvements are being constructed, to keep them updated on project conditions and scheduling. We are also utilizing cable TV to provide up to the minute reports on changing project conditions. • One activity which has been handled by the Public Services Coordinator in the past is special assessments. As the Neighborhood Street Improvement Program progresses, this activity will grow beyond the time the PSC has available to dedicate to it. This requires calculating the special assessment component of street projects, using policies provided by the Engineer and Public Services Coordinator; being responsible for the entire special assessment process: developing preliminary assessment rolls, pending, notifying, publishing, preparing Council items, correspondence with the County, preparing final assessment rolls; and managing senior deferrals and assessment stabilization applications. Note that until the early '80's, the city employed a full -time special assessment clerk to handle these and other duties. When that position was eliminated, some duties were then reassigned to the Assessing division, and the rest were absorbed into the workload of the Engineering division. Prior to 1989, the department support staff included an Engineering Receptionist and an Administrative Aide. The department accepted a downgrade of the Aide position in order to upgrade the Receptionist to a Secretary. There continues to be a need for a full -time secretary - note that while the position is titled "Engineering Secretary," that person also provides clerical support for Building Maintenance, and until recently, the Street, Park, and Public Utility divisions. However, the need for someone to handle the myriad miscellaneous tasks, many of which involve substantial public contact and customer service, is becoming overwhelming. Financial Impact If this position upgrade were to be effective immediately, the associated cost increase for 1994 would be about $1,150. The annual cost increase, using the 1994 pay plan, would be about $2,300. Due to position vacancies in the Engineering division, there are ample funds available to cover this cost increase. Recommended City Council Action: Amend the 1994 pay plan to eliminate one Engineering Secretary position, grade D14, and add one Public Services Administrative Aide position, grade D21. • 11� Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AMENDING THE 1994 PAY PLAN, AUTHORIZING UPGRADE OF ONE ENGINEERING SECRETARY POSITION TO PUBLIC SERVICES ADMINISTRATIVE AIDE WHEREAS, Resolution No. 93 -232 sets wages and salaries for calendar year 1994; and WHEREAS, the Director of Public Services has recommended that one of two authorized Engineering Secretary positions be upgrade to a Public Services Administrative Aide to respond to changing operational needs and to provide a higher level of public contact and customer service. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, that the 1994 pay plan Schedule D is hereby amended as follows: 1. Delete one Engineering Secretary position, pay grade D14. 2. Add the position of Public Services Administrative Aide, pay grade D21. 3. Said position shall be funded from the General Fund. Date Todd Paulson, Mayor ATTEST: Deputy Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. CITY OF BROOKLYN CENTER POSITION DESCRIPTION POSITION IDENTIFICATION TITLE: Public Services Administrative Aide DEPARTMENT: Public Services STATUS: Nonexempt SALARY SCHEDULE: Nonexempt Employees - Schedule D DATE WRITTEN: June 1994 POSITION SUMMARY Assists the Public Services Department with the development and coordination of various departmental programs. Provides a variety of research and administrative tasks as assigned under the direction of the Public Services Coordinator. I. ESSENTIAL DUTIES AND RESPONSIBILITIES A. Assists in keeping special assessment records and in preparing special assessment certification documentation. B. Organizes and manages the public services record management program. C. Tracks the status of city, state, and federal aid projects and contracts. Provides assistance to the City Engineer in preparing project documentation. D. Administers the diseased tree removal program, the noxious weed removal program, and special forestry programs such as Residential Reforestation and Tree City USA. E. Coordinates volunteer services such as the Adopt- A- Park/Trail /Street program. F. Assists in developing and implementing public information programs regarding public services programs. G. Responds to public inquiries by phone or in person. H. Conducts research projects as requested by the Director of Public Services, the Public Services Coordinator, or the City Engineer. I. Operates various office and duplicating machines. Utilizes computer spreadsheet, word processing, database, and other applications. II. OTHER DUTIES AND RESPONSIBILITIES • Performs other duties as assigned. KNOWLEDGE SKILLS AND ABILITIES 1. Ability to work tactfully and effectively with the public, with other department and city personnel, and with other agencies. 2. Ability to perform basic mathematical computations. 3. Ability to organize and systematize record keeping procedures and various records. 4. Ability to communicate in English clearly and concisely, both orally and in writing. MINIMUM REQUIREMENTS 1. Must be able to type 60 w.p.m. 2. Experience working with computerized word processing, spreadsheets, and databases required. DESIRABLE QUALIFICATIONS 1. Two years general college or equivalent business courses preferred. 2. Three to five years comparable clerical work experience preferred. POSITION DESCRIPTION APPROVED By Department Head Date Approved By City Manager Date Approved Council Meeting Date 06/27/94 31 City of Brooklyn Centex Agenda Item Numbe Request For Council Consideration Item Description: RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS, IMPROVEMENT PROJECT NO. 1994 -31, PLAYGROUND EQUIPMENT REPLACEMENT AT WILLOW LANE PARK Department Approval: Mark J. Maloney, Ci gineer e� Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached Yes ) City staff and its consultant have been working with ISD #279 over the last few months to jointly • develop a plan for removal of obsolete equipment in Willow Lane Park, and replacing it with new equipment located nearer to the Willow Lane Elementary School. At its last regular meeting, the City Council approved the draft cooperative agreement containing the provisions for cost sharing, maintenance, etc. With involvement of the School District officials, staff and students of Willow Lane Elementary School, PTA and Park and Recreation Commission, the City Engineer and the Westwood Professional Services, Inc. have developed plans and specifications for installation of playground equipment at Willow Lane Park. Other necessary work to the site, such as the concrete perimeter and trails, will be performed in conjunction with the annual sidewalk and trail project. A copy of the specifications for the playground project are included with this report. At the beginning of this process it was hoped that the playground apparatus could be installed and useable by the beginning of school, approximately September 1st. Because of delays in the development of the cooperative agreement between the City and ISD #279, and considering the normal bidding and approval process, we now expect to have work finished by October 1st. Recommended City Council Action: A resolution approving plans and specifications and authorizing advertisement for bids is provided for consideration. N Re d .v Steps Horizontal Handicapped Access ,cress Double 'Track Ride Ladder Slide Wave Slide N Spiral Talk Tube Vertical Climber Climber Fire f Horizontal Spiral Pole A I d Rings Slide Math Panel Pole Spelling Pane. Z� Slide Arch Tire Swing �j Climber Suspension � Bridge Vertical Curve Slide Chain Climber Wave b � � Climber Slide move Sand --- Steering Wheel \ it Ip Loop Climber Tic -tar -toe !� Bubble Panel Double Slide = Q1 V Co ncrete C urb 80' i 612 957 5822 06114/94 12:07 $612 937 5822 WESTWOOD PRO SVS Z002/013 DESIGN /BUILD PROPOSAL DOC' 11 , 9 ` 10 FOR THE PLAY EQUIPMENT COMPLEX AT WILLOW LANE SCHOOL CITY OF BROOKLYN CENTER PROPOSALS DUE: JUNE 30, 1994 10:00 A.M. Prepared under contract with Westwood Professional Services,1nc. 14180'W. Trunk Highway 5 Eden Prairie, N.Nj 55344 June 1994 TABLE OF CONTENTS Certification ..................................................................................................... ............................... i Request Proposal ............... ........ ...................................................................................... ............ ...... ii Proposal Form Instructions to Proposers .... ...- ............. ...................................................................... ............................... v Technical Specifications ............................................................................................ ............................... 1 Playground - pt Plan ................. .......................................................... _............................................. 4 This document should contain, all of the above referenced items Proposers should review the materials to be sure all information is available to them. I hereby certify that this specification was prepared by me or under my direct supervision and.that I am a duly R.oj�sicrcd Architect under the Laws of the State of Minnesota. Date. Tim Eridzla Rcg. No. 12239 i 61Z 937 5z5ZZ o6,•14/94 12:07 V612 937 5822 WESTWOOD PRO SVS 003 %013 (OFFICIAL PUBLICATTON) REQUEST FOR PROPOSAL FOR PLAY EQUIPMENT COMPLEX AT WILLOW LANE SCHOOL STTE IN THE CITY OF BROOKLYN CENTER PROPOSALS will be received by the office of the City Engineer at the Brooklyn Center City Hall, 6301 Shingle Creek Parkway, Brooklyn Center, Minncsota iantil Thursday, .tune 10, 1994 at 10;00 a.m_, local time and then opened and publicly read and as soon as possible thereafter, award of contracts will be made by the City for the above. The Scope of Work shalt include the design, purchase, delivery and installation of all metal play equipment complex and benches. Specifications and further details are available through Westwood Professional Services, Inc., 14190 W. Trunk. Highway 7, Edcti Prairic, Miruiesota -X344, 937 -7l50, A non - refundable fee of $x_00 -,will be charged for proposal packages. Proposers shall propose the configuration and collection of play equipment pieces beyond the. specific components, which they can provide fc)r a suagested price_ The City shalt then evaluate proposals. The right is reserved to accept or reject any or all proposals. CITY OF BROOKLYN CENTER /s/ Mark Maloney City Engineer Published in the Brooklyn Center [Sa.ilorl June 1994 ;i 512 9�57 5 , 822 0Eii1 4i9 4 12:08 la612 937 5822 WESTW01 - 3D PRO SE'S 001)4 013 PROPOSER: PROPOSALS DUE: JUNE 30, 1.994 10 :00 A.M. PROPOSAL FORM FOR PLAY EQ!UTPMENT COMPLEX WILLOW LANE SCHOO TO: Mark Maloney, City Engineer City of Brookhii Center 63 0 1 Shingle Creek Parkway Brookltm Center, NIN 55430 Dcar Sir: 1. T11e following proposal is made for the installation of Play Equipment Complex as noted above and as described in the Request for Proposal, _, The undc;rsii7ned certifies that the Re y p Request for Proposal has been carefully examined and understood and that at no time will misunderstanding of the notice or specification be pleaded. In submitting this proposal, it is understood that the right is reserved by the City to reject any or all proposals and to waive infomia.litiM 4. If a corporation, ,what is the state of incorporation'? 3, If a partnership, state full names of all copartners. 6. Enclosed with this proposal is a cashier's cheek or certified check or a Bid Bond in the amount of which is equal to 5% of the proposal. The amount of the check or bond shall be collected and retained by the City as liquidated damages in the event this proposal is accepted by the City and .within ten (10) days after the undersigned is notified that said proposal has been accepted and does not enter into a contract otherwise said check or bid bond shall be returned to the undersigned upon demand, 7. Proposal Items The undersigned proposes to furnish d specific components as described in the Technical Spcci iieation plus additional features and modifications as identified by Proposer. List additional pieces on the following page or reference an attached sheet and show on your site plan proposal. iii 512 9Zi 5g2Z 06•'14!94 12:08 $612 937 5122 WESTWOOD PRO SVS 2005 /013 7. proposal Items (continued) - Space for additional features or picccs list 8. Color Schcmr;s Alternative 1 Alternative 2 The requested component plus any additional picccs is illustrated on the attached site plan. This site plan is an accurate representation ofthc proposal. The play equipment will fit within the edgers provided. The total proposal for the basic play structure, plus additional picccs, mats, benches, modifications, and installation is $ , The equipment will be dc,livcred to the site on (date). Respectfiilly submitted by: Finn Nance: Official Address: IV 51Z D�5 SUZZ 06.11. 94 12:09 $61: 937 5822 WESTWOOD PRO SVS 0o 6, 13 INSTRUCTIONS TO PROPOSERS PLAY EQUIPMENT COMPLEX AT WILLOW LANE SCHOOL CITY OF BROOKLYN CENTER I NDEX: 1. Introduction/Project Scope 2. Invitation for Proposal 3. Extent and Schedule of Work 4, Submission of Proposals 5, Bid Security C. Proposals 7. Consideration of Proposals 8. Collusion of Proposers 9, Delivery 10. Method of Payment 11, Tax Exemption 12. Discrimination 13. Evaluation of Proposals 14. Proposer's Design flexibility- (� . Substitution of Materials /Design 16. Qualification of Proposer 1. Tntroduction/Proiect Scope This specification contemplates the design, furnishing and installation of play equipment and benches at Willow Lane School in the City of Brooklyn Ccrntcr, Minnesota. At the tune of installation, the City will have constricted the play pit edger and associated sidewalks as shown on the attached site plan. The proposer should design a ply equipment complex that works within the confines of the edgers, This complex should include the specific features listed below plus any additional proposed features to create a complete, operational, and handicapped accessible structure. The maximum budget allowed for this equipment and installt,tio« is $0,000; however, the proposer can propose a lower priced design if lie /she feels it is the best design. The follorving, features must be included in the play equipment complex- 1 tire swing 1 suspension bridge 1 hand rings I track ride 1 wave slide. I horizontal ladder with horizontal curves I steering wheel Additional features desired, but not required are 1 log roll panels (not spelling or math) feature slides toss and score games other features that enhance the plan value of the structure and fit within the edger provided. 512 93T 5322 06%14.94 12:09 %Y61- 937 5$22 WEST4Y013D PRO SFS 0007/013 Pour benches shall also be supplied and installed in outside the play pit (locations selected by the City). The proposer shall offer the configuration and assemblar;e of play equipment pieces beyond the basic components which they provide based on the space provided and maximum price. The City shall then evaluate the proposals for the number of components included, the quality, and the play value for various age groups. The proposers are encouraged to include additional all metal items, either attached or independent, as long* as the proposal does not exceed $50,000.00, The proposer shall furnish only the Iatest model of new equipment now in production and which has demonstrated it will function satisfactorily and safely for use by the public. The unit shall be equipped with all necessary equipment that is normally furnished as standard equipment with the particular model proposal as specified herein. The unit shall be equipped with handicapped accessible equipment such as mats and transfer decks to meet ADA requirements. The proposer is also required to submit a layout plan for the play equipment using the site plan attached. 2. Invitation for Proposals Proposals will be accepted until 10 a.m, on the 30th day of June, 1994 at the Brooklyn Center City Hall for the play equipment structure(s) and benches, 3. Extent and Schedule of Work Cost of equipment, delivery and installation is included in the scope of work. Work shall be done as required by the City of Brooklyn Center. Work shall be coordinated with the Parks Superintendent or 7 T- his dcs�+ nee. Dama C e turf resulting from inti allation should be k� t tninunum. The g o th g o , t k o a contractor is responsible for protecting the concrete edger of the playpit from damage. Work shall be coordinated with the City to allow the schedule of work. to proceed as follows a. Receipt of proposals on June 30, 1994, b. Negotiation and review of proposals. c. Verification of site plan and details by proposer, d. City awards contracts and issucs purchase orders on July 1.2, 1994 (aver July 12, 1994 Council meeting. e. City prepares site: • prepares subgrade • prepares sidewalks and edging • removes existing play equipment C, Contractor installs benches, play equipment and handicapped accessible mats; contractor eligible for substantial completion payment between Au6rust 1 and September 1. g. City brings in mulch bed. h. City scxds(sods damaged area. i. Equipment ready for use on September 1 (usable safe). j. Contractor has completed punch list items and is eligible for final payment between September 1 and October 1. Vi 01Z 957 5UZ2 06i14;'94 12: 10 $612 937 5322 WESTWOOD PRO SE'S ZUO3/g13 4. Submission of Proposals Submit proposals to Mark Maloney, City Engineer at City Hall, 6301 Shingle Creek Parkwway, Brooklyn Center, Mid a5430, no later than 10 a,m. on June 30, 1994. The City of Brooklyn Center reserves the right to reject any and all proposals as subnutted. 3. Proposal Securitx No proposal shall be considered unless accompanied by a cash deposit, certified check, or bid bond in the amount of at least five percent (5 1 1a) of the tendered proposal. All fornis of bid guarantee shall be made payable to the City of Brooklyn Center. The bid guarantee: of unsuccessful proposers will be returned within 30 days following action by the City on the award of the contract and to the successful proposer upon execution of. contract. In case the successful proposer fails to enter such a contract, that amount of the bid guarantee shall be forfeited to the City as liquidated damages. 6. Proposals The proposer shall submit the proposal on the form as fimiishcd in these specifications. The bid bond should reflect the total value of the play equipment submitted for proposal. Only proposals which are made out on the original form or a copy and completely filled out will be considered. Proposal forms must include a facilities list and site plan illustrating the play equipment pieces being provided in relation Co the edgers. In addition, the proposer should supplrrnent his site plan with whatever data helps explain the play value, durability, site sensitivity, aesthetics, etc. of his proposed play equipment complex. The quantity and quality of data submitted will be helpful in the selection of proposer_ However, the information submitted with the proposal becomes part of the work contract so accuracy is necessary. A complete subnnission will include: A. Complete Proposal form including: * List of all equipment to be provided including benches + Color schemes • Total cost for equipment, delivery, and installation • Delivery date B. Site Plan illustrating proposed equipment. 7. Consideration of Proposal~ Proposals will be reviewed and any clarifications will be made until a decision is made on July 11, 1994. Notifications of the award will be made by July 12, 1994, S. Collusion of Proposers Collusion between proposers shall be cause for rejection of all proposals thus involved. Vii 612 937 5322 06/14194 12:10 $612 937 5322 WESTWOOD PRO SVS 2009/013 9. Method f Payment Payment for the work will be by check. 10. Tax Exemption The City of Brooklyn Center is an instrumentality of the State of Minnesota and is therefore not subject to State Sales Tax or Federal Excise Tax. Tt holds Minnesota Tax. Exemption Number 8022582. Appropriate certificates shall be furnished by the City if required. 11. Discrimination The Contractor shall be in compliance with all applicable Federal and State Statutes and the City of Brooklyn Center' adopted Affinnative Action program regarding nondiscrimination and equal employment opportunity. Failure to comply with such statues and/or Affirmative Action Program may lead to the non - award of a contractor or once a contract has bee let, the cancellation of such contract. 12. Evaluation of proposals Since the space and maximum cost are fixed, the quantity and quality of the proposal shall be the determini�ctor The fixed fee is believed to be adequate to provide the necessary play apparatus, p lus additional features, plus qualitative improvements. Proposals shall be evaluated on the basis of the following criteria. The City may ask for a presentation of proposals. a. Specific Components • Finish of poles, decks, warranty • Slides, length, width material, warranty • Appeal to diversity of age groups • Number of users which can be accommodated b. Facility Siting • Use of available area • Compatibility with existing structures • Creative response to space • Slides shall be sited in a cooler and shadier location such as a north or northeast exposure. • Traffic flow on and around the structure shall minimize congestion and conflicts. Safety issues will also be considered when evaluating traffic patterns. • Handicapped accessibility (meeting ADA requirements) c. Additional Pieces • Play value • Appeal to broad age group • Adequate site spacing • Quality of construction {materials and warrant) • Compatibility with basic unit or existing facilities viii 512 957 5822 06/14/94 12:12 %Y612 937 5822 WESTWOOD PRO SVS f7j013/013 d. Qualifications of Proposer • Previous projects in Metro area • References from previous clients • Duration in industry Warranty • Maintenance and service history of proposer in Brooklyn Center and Metro area 15. Substitution of MaterialslDesign If the selected proposer proposes to substitute materials or alter the design to be out of compliance with the specification, two processes are allowed. a. Prior to submission of Proposals - Proposed change (material or design) must be approved in writing by the City's Landscape Architect/Engineer (Westwood Professional Services, Inc.) three (3) days prior to the submission of proposals. b. At the time of submission of Proposals _ Proposed changes (material or design) shall be noted clearly on the proposal form. Proposals submitted with changes not approved by the Landscape Arehiie. t Engineer may be accepted or rejected based on the City's Landscape Architect/Engineers (Westy, ood Professional Services) review of how well those changes comply with the intent of the original specification. Changes which are clearly contrary to the performance standards specified shall be rejected without further consideration. Failure of any proposer to comply with this requirement is cause for rejection of their proposal. Othemvise, it is understood that the play equipment shall be furnished as specified. lb. Qualification of'Proposer The Owner may request the proposer to submit information necessary to satisfy the Owner that the proposer is adequately prepared to fulfill the contract. Such information may include past performance records, list of available personnel, plant, equipment, financial statement or any other pertinent information. The proposer shall also submit a list of clients that have purchased play structures from the product line being submitted. ix 012 937 552Z 06/14/94 12:11 $612 937 5822 WESTWOOD PRO S4S Z010/013 TECHNICAL, SPECIFICATIONS 1. SCOPE OF WORK The work included in each of the three projects includes the purchase of benches and play equipment, delivery and installation of the play equipment at Willow Lane School. The following specific components (or their equivalent) will be required: 1 steering wheel panel Handicapped accessible decks and mats 1 suspension bridge 1 hand ring course 1 track ride 1 wave slide 1 tire swing 1 horizontal ladder with horizontal curves 4 benches Proposers are required to include any ladders and decks necessary to support the requested components and are encouraged to include additional equipment in their proposals. These pieces can either be attached to the modular system or can be individual, free - standing pieces (e.g, diggers, spring toys, etc.) Embellishment of the basic play unit is allowable as long as the minimum requirements are met. Examples of which include but are not limited to additional decks, hanging features, additional climbers, etc. Desired optional components include a log roll, toss and score games, game panels, and a winding slide. Any structure or freestuiding equipment oriented to the preschool ages shall be at least 20% and not exceeding 25% of the installed price of all play equipment. Any structure or freestanding equipment oriented to the school -age children together shall be at least 75% and not exceeding 80% of the installed price of all play equipment. Proposals shall conform to the dimensions of the edgers constructed for play structures, a-act conformance to the configuration and dimensions of the play areas is not necessary. Shop drawings shall be provided to the City by the selected proposer concurrent with the delivery of materials. These drawings and instructions shall be for the basic equipment package and also the additional pieces included in the proposal but not mentioned above. The proposal packages will be evaluated for safety, aesthetics, durability, versatility (appeal to diverse age groups), variety, play value, and warranty coverage. Proposers shall also provide a delivery date as part of their bid proposal. 11. INFORMATION -- MATERIALS AND FINISHES A. Alunninuum or Steel Materials All playground equipment shall be made of aluminum or steel material. All support members used in the ground must be a non - corrosive metal or metal treated to resist corrosion. Upright metal support posts shall have vandal -proof and moisture -proof caps on tops. All play equipment system posts, beams, hand and support rails shall be standard weight and melt minimum required strength specification. 1 i 512 937 5822 06/14'94 12:11 X612 937 5322 WESTWOOD PRO SVS 011/013 All exposed ends of posts and beams shall be covered with a protective cap, adequately fastened at factory to prevent vandalism. All pre-drillcd holes larger than 1/4" remaining after the structure is installed, shall be filled with permanent caps or plugs which are sn enough to prevent scratching or tearing of skin or clothing, adequately fastened to prevent vandalism._ Posts and rails shall be attached with suitable welded or locking collar joints. Joints shall be smoothly finished. All steel hardware shall be electroplated, powder coated, hot -dip galvanized or othenvise rust resistant. All connecting hardware shall be vandal- resistant writh minimal protrusions. All plastic, vinyl or poly parts that are fabricated with and/or to be attached to the apparatus with screws or bolts, must be reinforced Nvith embedded metal or appropriately attached metal bonds or fabric. All chains shall be minimum 1/4" diameter, welded link. All rails and loops shall be either a 6061 T6 aluminum alloy ea- traded to 1" - 15/16 O.D. x 1/2" I.D. or 11 gauge, l" - 1/8" O.D. galvanized steel. All rails, horizontal rungs, loops, fireman's poles, pipe walls and other hand gripped metal attachinents, shall be thoroughly cleaned and electrostatically powder coated as described boleti.. Rail ends shall be plugged in the factory with a round high density polyethylene molded cap plug of a matching color. Vlore required, metal parts shall be electrostatically powder coated. Power coating shall be a non - toxic pure polyester /urethane material applied to steel that has been degreased, etched, and phosphatized. Minimum film thickness shall be 3 mils. B. Decks Square shape, metal decks coated with oven- cur fade resistant, durable pol� chloride that _ d with a minimu Deck shall be square an insulates metal to prevent burns from sun heated surfaces. s dimension of 42" on a side. Decks shall be installed at heights between 12" and 78 ", with all decks separated by no less than 12 ", and no more than 18" in height. Decks shall be expanded metal or punched steel, covered with non -toxic, vinyl or poly and designed to ft flush to provide a protrusion -free surface. There should be a gradual transition from lows positioned platforms to high positioned platforms. All deck posts are to be set on no less than 42" centers. No gaps between adjacent deck areas will be permitted. Adjacent decks shall be placed at no greater height intervals than fourteen (14) inches unless rungs or mechanisms are provided to access adjacent decks. Decks separated by greater than 18" must have safety railings between them. 2 51z 357 5522 06/14/94 12 :12 $612 937 5322 WESPYOOD PRO SVS Q1012/013 All decks and deck areas above 30 inches must be enclosed with safety rails or enclosures 38" high to meet CPSC guidelines except at entrance and exit slides. C. Posts Posts shall be fabricated of 11 -13 gauge wall of galvanized steel tubing with exterior and interior steel tubing complying with ASTM A -500 or A -513. Posts may also be of aluminum construction of comparable tensile strength, Yield strength shall be a nnimum of 40,000 PSI and a minimum tensile strength of 45,000 PSI. All posts to be securely capped on top. Posts shall be of sufficient length to reach high enough above deck level to serve as attachment poles for wall panels, slides, and climbers. Posts shall be of sufficient length to be anchored in footing 18" below play surface. D. Steel Pipe Components I" - 15/16" O,D, galvanized inside and out steel tubing, solid weld construction. Curved portions without distortion, rungs are 1" O. D. galvanized steel tribe. Components include: vertical ladders, hand holds, rungs, wall enclosures. Railings shall be provided along all deck sides that do not directly connect into another deck or component within 14" in height. E, Slides Open slides which are no more than seventeen (17) inches wide and originate six (6) feet or more from the ground, must have a slide tunnel attachment which forces the user to sit down to begin the slide. Slide beds shall be a minimum 18- gauge stainless steel, thermoplastic or polyethylene materials. A minimum of 114" thickness tivill also be acceptable. P. Color The play equipment shall be primarily a neutral color (black, white, cream, brown, beige) with brighter colored accents (blue, red, green, yellow, orange, purple). No more the 1/3 of the equipment surface area shall be the accent color, The contractor is encouraged to propose two alternative color schemes. The color scheme will be selected by the City of Brooklyn Center. The contractor should expect no extra cost involved in color decision. The standard manufacturers colors will be sufficient. G. Benches Benches will be direct burial with foundation. Contractor shall coordinate bench elevation with the City. The surface material under the bench V*%g11 be furnished by City. 3 Member introduced the following resolution and is moved its adoption: RESOLUTION NO. RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS, IMPROVEMENT PROJECT NO. 1994 -31, PLAYGROUND EQUIPMENT REPLACEMENT AT WILLOW LANE PARK WHEREAS, the City Council has previously approved the development of a cooperative agreement providing for the cost sharing and maintenance responsibilities for new playground equipment at Willow Lane Park; and WHEREAS, the City Engineer and Westwood Professional Services, Inc., with input from Independent School District No. 279, the Willow Lane Elementary School staff and students, and the PTA, have developed plans and specifications for the installation of new playground equipment at Willow Lane Park. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1 Plans and specifications for Improvement Project No. 1994 -31, Playground Equipment Replacement at Willow Lane Park, are hereby approved. 2. The Deputy City Clerk shall prepare and cause to be inserted in the official newspaper and in the Construction Bulletin an advertisement for bids for the making of such improvement in accordance with the approved plans and specifications. The advertisement shall be published in accordance with Minnesota Statutes, shall specify the work to be done and shall state the time and location at which bids will be opened by the Deputy City Clerk and the City Manager or their designees. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Deputy City Clerk and accompanied by a cash deposit, cashier's check, bid bond, or certified check payable to the City Clerk for 5 percent of the amount of such bid. RESOLUTION NO. 0 6 Date Todd Paulson, Mayor ATTEST: Deputy 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. Council Meeting Date 06/27/94 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration r Item Description: RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES Department Approval: —r A-0-4,� Q2 C3 Diane Spector, Director 4jublic Services Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached _) The attached resolution represents the official Council action required to expedite removal of the trees most recently marked by the City tree inspector, in accordance with approved procedures. It • is anticipated that this resolution will be submitted for council consideration each meeting during the summer and fall as new trees are marked. Recommended City Council Action: It is recommended the Council adopt the attached resolution. • //5 Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES (ORDER NO. DST 06/27/94 ) WHEREAS, a Notice to Abate Nuisance and Diseased Tree Removal Agreement has been issued to the owners of certain properties in the City of Brooklyn Center giving the owners twenty (20) days to remove diseased trees on the owners' property; and WHEREAS, the City can expedite the removal of these diseased trees by declaring them a public nuisance: NOW, THEREFOR, BE IT RESOLVED BY THE CITY COUNCIL of the City of Brooklyn Center, Minnesota that: 1. The diseased trees at the following addresses are hereby declared to be a public nuisance: TREE PROPERTY OWNER PROPERTY ADDRESS NUMBER ---------------------- - - -- -- ----------- ------------ - - - - -- -- - - - - -- ROBERT & THELMA LENNARTSON 5400 FRANCE AVE N 13 LUTHERAN CHURCH OF MASTER 1200 69TH AVE N 14 MYRA CHAZIN 1100 69TH AVE N 15 JEFFREY & MICHELLE LOBERG 7230 DUPONT AVE N 16 JOHN & JANICE FOSTER 1019 WOODBINE LN 17 R & D ZITURE & R. SCHERER 413 66TH AVE N 18 R & D ZITURE & R. SCHERER 413 66TH AVE N 19 R & D ZITURE & R. SCHERER 413 66TH AVE N 20 R & D ZITURE & R. SCHERER 413 66TH AVE N 21 R & D ZITURE & R. SCHERER 413 66TH AVE N 22 MICHAEL & TAMRE O'BRION 6500 DREW AVE N 23 HAROLD & PATRICIA DAY 6513 CHOWEN AVE N 24 KENNETH & DOLORES JOHNSON 3006 66TH AVE N 25 PAUL & MAUREEN TROTTER 6225 FRANCE AVE N 26 SUSAN GESKE 3813 62ND AVE N 27 CITY OF B.C. BLVD ACROSS 5840 LOGAN 28 CLARENCE & IRIS DENIO, JR. 6336 EMERSON AVE N 29 CLARENCE & IRIS DENIO, JR. 6336 EMERSON AVE N 30 RICHARD /KIMBERLY STALLMAN 5315 FRANCE AVE N 31 CHARLES & RUTH DENNISON 6527 BROOKLYN BLVD 32 NORM CHAZIN 1308 69TH AVE N 33 CITY OF B.C. PALMER LAKE BASIN 34 ROBERT & VERNA PETERSON 5419 68TH AVE N 35 JOSEPH & LORRAINE HORN 1612 72ND AVE N 36 JOHN & SUSAN DAUGHERTY 6424 ORCHARD AVE N 37 ANN MARIE WRZOS 3512 72ND AVE N 38 PHILLIP & KAREN GRAY 6919 REGENT AVE N 39 EARL BACKER 7018 BROOKLYN BLVD 40 EARL BACKER 7018 BROOKLYN BLVD 41 EARL BECKER 7018 BROOKLYN BLVD 42 RESOLUTION NO. 2. After twenty (20) days from the date of the notice, the property owner(s) will receive a second written notice providing five (5) business days in which to contest the determination of the City Council by requesting, in writing, a hearing. Said request shall be filed with the City Clerk. 3. After five (5) days, if the property owner fails to request a hearing, the tree(s) shall be removed by the City. All removal costs, including legal, financing, and administrative charges, shall be specially assessed against the property. Date Mayor ATTEST: Deputy 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. Council Meeting Date 06/27/94 / G 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: RESOLUTION ACCEPTING WORK PERFORMED AND APPROVING FINAL PAYMENT FOR 1993 DISEASED TREE REMOVAL PROGRAM, IMPROVEMENT PROJECT NO. 1993 -01, CONTRACT 1993 -A Department Approval: Diane Spector, Direct o Public Services Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached Improvement Project No. 1993 -01 has been completed by Outside Services, Inc. The City Council • accepted their proposal per Resolution 93 -62, and a contract was subsequently executed. Due to an overestimation of quantities, the actual value of work performed is $2,926.00 less than the original contract. Staff recommends acceptance of the work performed and authorization to make final payment to Outside Services, Inc. The final contract amount of $24,179.00 includes $921.23 for extra work which included the removal of a tree declared a public nuisance as identified in Section 20 -202 of the City of Brooklyn Center ordinances. Recommended City Council Action: A resolution accepting work performed and authorizing final payment to Outside Services is attached for Council consideration. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ACCEPTING WORK PERFORMED AND APPROVING FINAL PAYMENT FOR 1993 DISEASED TREE REMOVAL PROGRAM, IMPROVEMENT PROJECT NO. 1993 -01, CONTRACT 1993 -A WHEREAS, pursuant to written contract signed with the City of Brooklyn Center, Minnesota, Outside Services, Inc. has satisfactorily completed the following improvement in accordance with said contract: IMP - IMPROVEMENT PROJECT NO. 1993 O1 1993 Diseased Tree Removal Program, CONTRACT 1993 -A. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1. The work completed under said contract is accepted and approved. 2. The actual value of work performed is $,926.00 less than the original contract value, due to an overestimation of quantities. 3. It is hereby directed ' y d that final payment be made on said contract, taking the Contractor's receipt in full. The total amount to be paid for said improvement under said contract shall be $24,179.00. Date Todd Paulson, Mayor ATTEST: Deputy 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. Council Meeting Date 6127194 31 City of Brooklyn Center A g enda Item Nwnbc Request For Council Consideration • Item Description: Resolution Declaring Disapproval of the Actions of a Councilmember Department Approval: Ae- . Gerald G.. Splinter, City Manager Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached _) Councilmember Kristen Mann has requested the attached resolution be considered this evening by the City Council. • Recommended City Council Action: • Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION DECLARING DISAPPROVAL OF THE ACTIONS OF A COUNCILMEMBER WHEREAS, the full City Council of the City of Brooklyn Center affirmed Resolution No. 94 -01, Declaring Commitment to the Brooklyn Center City Charter, Pledging Fair Treatment of Employees, Declaring Against Conflicts of Interest and Misuse of Positions; and WHEREAS, Resolution No. 94 -01 asserts the Council's obligation to police its own conduct and to ensure that its business is conducted pursuant to the City Charter and the norms of acceptable behavior; and WHEREAS, Mayor Todd Paulson, after receiving a memorandum dated May 14, 1994, from Chief Trevor Hampton, acted inappropriately by going to the media without consulting with the City Attorney and causing potential liability and public relations problems. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that: 1. The Council stands in disapproval of said actions. 2. The Council calls on Mayor Paulson to exercise greater prudence in the future. 3. The Council reaffirms its dedication to ensure that all City matters will be dealt with pursuant to the norms of acceptable business behavior and the City Charter. Date Todd Paulson, Mayor ATTEST: Deputy Clerk The motion for the adoption of the foregoing resolution was duly seconded by member favor thereof: and upon vote being taken thereon, the following voted in . and the following voted ed agasnst the same: whereupon said resolution was declared duly passed and adopted. Council Meeting Date 6/27/94 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration Item Description: Resolution to Appoint Outside Prosecutor Department Approval: Gerald G. Splinter, City Nfanager Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached Yes Attached is a letter dated June 22, 1994, from William G. Clelland of Carson and Clelland. The letter outlines the need for an outside prosecutor to handle City prosecution services from time to time when a conflict of interest occurs. Such circumstances would be if a present or former client is involved in • the case. Carson and Clelland is recommending that the City Council pass a resolution to give Carson and Clelland the discretion to use experienced and well qualified attorneys who are capable of undertaking the role of independent prosecutor should the need arise. The attached resolution authorizes this and lists four firms to be used as alternate prosecutors. Recommended City Council Action: Pass a Resolution to Appoint Outside Prosecutor. i GARSON AND GLELLAND ATTO$NEYS AT LAW 6300 SHINGLE CREEK PARKWAY, SUITE 305 JEFFREY A. CARSON MINNEAPOLIS, MINNESOTA S5430-2190 TELEPHONE WILLIAM G. CLELLAND (612) 561 -2600 STEVEN C. HEY FAX ELLEN M. SCHREDER (612) 561 -1943 22 June 1994 HAND - DELIVERED Mr. Gerald G. Splinter, City Manager CITY OF BROOKLYN CENTER 6301 Shingle Creek Parkway Brooklyn Center, 5543 y , 0 RE: Independent Prosecutors Dear Gerry: As you are aware, from time -to -time, it is necessary for a City Prosecutor to refer certain matters to an outside or independent prosecutor. Normally this is occasioned by a conflict of interest we may have such as a present or a former client being involved in the case. While this does not happen very often, the ethics of our profession require us to avoid not only conflicts of interest but also any appearance of impropriety and accordingly we need to use independent prosecutors on occasion. We are occasionally called upon by other City Prosecutors to serve as independent counsel for them on similar occasions. I am recommending that I be given the discretion to use the following attorneys as independent prosecutors in those situations. These are all experienced and well qualified attorneys whom I have Alio it Lor many years and I 1ino:^7 each -1 - - o be 'v ery capable. of undertaking the role of independent prosecutor should the need arise. The nominees are: 1. Martin J. Costello HUGHES & COSTELLO 345 St. Peter Street #1230 St. Paul, Minnesota 55102 -1637 Prosecuting Attorney for the Cities of Richfield and Maplewood 2. Jeffrey W. Lambert LAMBERT & BOEDER 1000 Superior Boulevard #300 Wayzata, Minnesota 55391 Prosecuting Attorney for the City of Wayzata Mr. Gerald G. Splinter, City Manager 22 June 1994 Page 2 3. Laurel M. Hersey MINNETONKA CITY ATTORNEYS OFFICE 14600 Minnetonka Boulevard Minnetonka, Minnesota 55303 Prosecutor for the City of Minnetonka 4. Frank Rondoni ROSENTHAL, RONDONI & MACMILLAN LTD 505 North Highway 169 505 Waterford Park - ITT Life Building Suite 175 Minneapolis, Minnesota 55441 Prosecutor for the Cities of Crystal and Golden Valley Sincerely, CARSON AND CLELLAND William G. Clelland WGC : �1 N Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION TO APPOINT OUTSIDE PROSECUTOR WHEREAS, Carson and Clelland serves as prosecutor for the City of Brooklyn Center; and WHEREAS, from time to time it is necessary for a City prosecutor to refer certain matters to an outside or alternate prosecutor due to conflict of interest such as a present or a former client being involved in the case; and WHEREAS, the ethics of the City prosecutor's profession require avoidance of conflicts of interest and any appearance of impropriety. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that Carson and Clelland is given the discretion to use the following attorneys as independent prosecutors in certain situations: 1. Martin J. Costello HUGHES & COSTELLO 345 St. Peter Street #1230 St. Paul, MN 55102 -1637 2. Jeffrey W. Lambert LAMBERT & BOEDER 1000 Superior Boulevard #300 Wayzata, MN 55391 3. Laurel M. Hersey MINNETONKA CITY ATTORNEYS OFFICE 14600 Minnetonka Boulevard Minnetonka, MN 55303 4. Frank Rondoni ROSENTHAL, RONDONI & MACMILLAN LTD 505 North Highway 169 505 Waterford Park - ITT Life Building Suite 175 Minneapolis, MN 55441 RESOLUTION NO. Date Todd Paulson, Mayor ATTEST: Deputy 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. Council Meeting Date 6/27/94 City of Brooklyn Centel Agenda Item Number Request For Council Consideration • Item Description: Licenses Department Approval: - �L� Sharon Knutson, Deputy City Clerk Manager's Review/Recommendation: v� No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached No ) Attached is the list of licenses to be approved by the City Council. Recommended City Council Action: Approve licenses. 31 City of Brooklyn Center Licenses to be approved by the City Council on June 27, 1994: AMUSEMENT DEVICE - OPERATOR Jem Amusement, Inc. dba Earle Brown Bowl 6440 James Circle N. Q{ K -Mart 5930 John Martin Drive 'U City Clerk ale- GARBAGE AND REFUSE COLLECTION VEHICLES Aagard Sanitation P.O. Box 21248 Darling & Co. P. O. Box 127865 Gallagher's Service, Inc. 1691 91st Ave. NE Hilger Transfer 8550 Zachary Lane K & S Sanitation 24 Crossway Drive The Mengelkoch Co. 119 NE 14th St. Midwest Grease Buyers, Inc. P. O. Box 26 Super Cycle, Inc. 775 Rice St. T & L Sanitation, Inc. P. O. Box 34695 Walz Bros. Sanitation, Inc. P. O. Box 627 Q Waste Control 95 West Ivy Ave. ICJ City Clerk MECHANICAL SYSTEMS Brooklyn Air Heating and Air Cond. 5801 Lyndale Ave. N. Correct Temp Heating 6646 29th St. N. n Horwitz Mechanical, Inc. 5000 N. Highway 169 C OL Building Official ,Q)4- RENTAL DWELLINGS Initial: Alchemedes Investment Co. Brookwood Estates Renewal: Keith L. Nordby 5964 Brooklyn Blvd. Jay Nelson Battenberg 5235 Drew Ave. N. Roland Scherber 5243 Ewing Ave. N. Robert/Marilyn Cashman 5430 Humboldt Ave. N. Gerard Moss /Brett Hildreth 5519 Lyndale Ave. N. Hogenson Properties 3813 Urban Ave. N. l Diane M. Barnes 1342 67th Lane N. Director of VV Community Development SIGN HANGER Crosstown Sign, Inc. 10166 Central Ave. NE �/ Building Official (�- General Approval: ��'1�ULt1Yl- )�,J} Pp Sharon Knutson, Deputy City Clerk COMPREHENSIVE ANNUAL FINANCIAL REPORT ■ of the CITY OF BROOKLYN CENTER, MINNESOTA For The Year Ended December 31, 1993 1 GERALD G. SPLINTER, CITY MANAGER Prepared by THE DEPARTMENT OF FINANCE Charles R. Hansen, Director Member of Government Finance Officers Association of the United States and Canada) ■ City of Brooklyn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31 1993 TABLE OF CONTENTS Exhibit Page Number Number Title Page I. INTRODUCTORY SECTION Table of Contents i - iv City Officials 1 Organization Chart 2 City Manager's Letter 3 Finance Director's Letter 4 - 14 Certificate of Achievement 15 II. FINANCIAL SECTION Independent Auditors' Report 16 A. General Purpose Financial Statements (Combined Statements - Overview): Combined Balance Sheet - All Fund Types and Account Groups 1 18 & 19 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 2 20 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget And Actual - General and Special Revenue Funds 3 21 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Types 4 22 Combined Statement of Cash Flows - Proprietary Fund Types 5 23 Notes to Financial Statements 24 - 51 i City of Brooklyn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1993 TABLE OF CONTENTS Statement/ Schedule Page Number Number B. Combining, Individual Fund and Account Group Statements and Schedules: General Fund: Balance Sheet A -1 53 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual A -2 54 Schedule of Revenue & Other Financing Sources.- Budget and Actual S -1 55 - 57 Schedule of Expenditures - Budget and Actual S -2 58 - 63 Special Revenue Funds: Combining Balance Sheet B -1 65 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B -2 66 - 67 Debt Service Funds: Combining Balance Sheet C -1 69 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C -2 70 Capital Projects Funds: Combining Balance Sheet D -1 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D -2 73 Project - Length Schedule of Construction Projects - Capital Improvements Fund S -3 74 Project - Length Schedule of Construction Projects - Municipal State Aid Construction Fund S -4 75 Project-Length Schedule of Construction Projects i Special Assessment Construction Fund S -5 76 ■ ii City of Brooklyn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1993 TABLE OF CONTENTS Statement/ Schedule Page Number Number Enterprise Funds: Combining Balance Sheet E -1 78 & 79 Combining Statement of Revenues, Expenses and Changes in Retained Earnings E -2 80 & 81 Combining Statement of Cash Flows E -3 82 & 83 Statement of Revenues, Expenses, and Changes in Retained Earnings - Municipal Liquor Fund E -4 84 Statement of Revenues, Expenses, and Changes in Retained Earnings - Golf Course Fund E -5 85 Statement of Revenues, Expenses, and Changes in Retained Earnings- Earle Brown Heritage Center Fund E -6 86 Statement of Revenues, Expenses, and Changes in Retained Earnings - Recycling & Refuse Fund E -7 87 Statement of Revenues, Expenses, and Changes in Retained Earnings - Water Utility Fund E -8 88 Statement of Revenues, Expenses, and Changes in Retained Earnings - Sanitary Sewer Fund E -9 89 Statement of Revenues, Expenses, and Changes in Retained Earnings - Storm Drainage Fund E -10 90 Internal Service Funds: Combining Balance Sheet F -1 92 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings F -2 93 Combining Statement of Cash Flows F -3 94 Agency Funds: Statement of Changes in Assets and Liabilities - Employee Deferred Compensation Fund G 96 General Fixed Asset Account Group: Schedule of Changes in General Fixed Assets By Sources S -6 98 iii Ci_..,ty g f Brooklyn Center COMPRE ANNUAL FINANCIAL REPORT Year Ended December 31 1993 TABLE OF CONTENTS Statement/ Schedule Page Number Number Schedule of General Fixed Assets By Function and Activity S -7 99 Schedule of Changes in General Fixed Assets B Function and Activity 8 100 Y Y General Long -Term Debt Account Group: Comparative Statement of General Long -Term Debt H 102 Summary of Debt Service Requirements to Maturity I 103 III. STATISTICAL SECTION Table Page Number Number General Governmental Y Expenditures b Function 1 105 P General Governmental Revenues anal Other , Financing Sources By Source 2 106 Tax Levies and Tax Collections 3 107 Assessed Value and Estimated Market Value of All Taxable Property 4 108 Direct and Overlapping Tax Rates and Tax Levies 5 109 Special Assessment Billings and Collections 6 110 Ratio of Net Bonded Debt to Assessed Value and Net Debt Per Capita 7 111 Computation of Legal Debt Margin 8 112 Computation of Direct and Overlapping Debt 9 113 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 10 114 Schedule of Water Reveni,_�a Bond Coverage 11 115 Property Value Constr- t_.L_,n and Bank Deposits 12 116 Principal Taxpayers 13 117 Schedule of Insurance Coverage 14 118 -119 i Demographic Statistics 15 120 Miscellaneous Statistical Facts 16 121 -122 iv City of Brooklyn Center CITY OFFICIALS For the Year Ended December 31 1993 ELECTED OFFICIALS Term o Office Term T rm f Expires p i Mayor Todd Paulson Four Years 12/31/94 Councilmember Celia Scott Four Years 12/31/94 Councilmember David Rosene Four Years 12/31/94 Councilmember Barbara Kalligher Four Years 12/31/96 Councilmember Kristen Mann Four Years 12/31/96 APPOINTED OFFICIALS City Manager Gerald G. Splinter City Clerk Gerald G. Splinter City Treasurer Charles R. Hansen City Attorney Holmes & Graven City Prosecutor Carson & Clelland Department Heads: Finance Charles R. Hansen Public Works Sy Knapp Police Trevor Hampton Fire /Emergency Preparedness Ronald Boman Community Development _Brad Hoffman Recreation Arnold Mavis Assessing Mark Parish Liquor Stores Gerald Olson Personnel Coordinator Geralyn Barone City Engineer Mark Maloney Public Works Superintendent Dave Peterson Health Officer Duane Orn, M.D. Fire Marshall Ronald Boman Civil Defense Coordinator Ronald Boman - 1 - ORGANIZATION CHART COUNCIL - MANAGER PLAN City of Brooklyn Center, Minnesota ADVISORY CHARTER COMMISSION Various Ad Hoc Committee b district court ELECTORATE ( ap p ointed y > ADVISORY Housing Commission CITY ATTORNEY ADVISORY CITY COUNCIL ADVISORY Human Rights &Resources Commission 7 - Financial Commission ADVISORY Parks & Recreation Commission CITY PERSONNEL COORDINATOR MANAGER CITY CLERK ADVISORY Planning Commission DIRECTOR DIRECTOR DIRECTOR CHIEF nMANA DIRECTOR ASSESSOR DIRECTOR Finance CHIEF Community Emergency Volunteer Public Tax Development of Department Police Prepared- Fire orks Assessment Recreation City Department ness Department Department Department Treasurer Earle Brown Golf Recreation Park Government Public Programs Engineering Street Heritage Course Maintenance Buildings Division Utilities Center Community Division Division Division LDivision Centerbrook Center i� M� i M M i i CITY 6301 SHINGLE CREEK PARKWAY OF BROOKLYN CENTER, MINNESOTA 55430 BROOKLYN TELEPHONE: 569 -3300 ENTER FAX: 569 -3494 EMERGENCY - POLICE - FIRE 911 June 13, 1994 HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL CITY OF BROOKLYN CENTER I hereby transmit the Comprehensive Annual Financial Report of the City of Brooklyn Center for the fiscal year ended December 31, 1993. Minnesota Statutes and City Charter, Section 7.12, require that the financial statements of the City of Brooklyn Center be audited by the State Auditor or a certified public accountant selected by the City Council. This requirement has been complied with by the engagement of the firm of Deloitte and Touche and their report is included in the financial section of this report. This report has been prepared following the P P P g guidelines recommended by the Government Finance Officers Association of the United States and Canada. The Government Finance Officers Association awards Certificates of Achievement for Excellence in Financial Reporting to those governments whose Comprehensive Annual Financial Reports are judged to conform substantially with high standards of public financial reporting, including generally accepted accounting principles promulgated by the Governmental Accounting Standards Board. Our financial reports for the past ten years have received this award. It is my belief that the accompanying report meets program standards, and it will be submitted to the Government Finance Officers Association for review. Respe fuJhy ubmitted, Gera Splinter City M nager 1386 AL WEWA ^rTY s ciTY 6301 SHINGLE CREEK PARKWAY OF BROOKLYN CENTER, MINNESOTA 55430 BROOKLYN TELEPHONE: 569 -3300 � I C E NT E R FAX: 569 -3494 EMERGENCY - POLICE - FIRE 911 June 13, 1994 Mr. Gerald G. Splinter City Manager City of Brooklyn Center Dear Mr. Splinter: The comprehensive annual financial report of the City of Brooklyn Center for the fiscal year ended December 31, 1993, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position, results of operations, and cash flows of the various funds and account groups of the city. All disclosures necessary to enable the reader to gain an understanding of the government's financial activities have been included. The comprehensive annual financial report is presented in three sections: introductory, financial, and statistical. Included in the introductory section is this transmittal letter, the government's organizational chart and a list of principal officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the independent auditors' report on the general purpose financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi year basis. The city is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget Circular A- 128, "Audits of State and ljocal Governments ". Information related to this single audit, inel,i ing the schedule of federal financial assistance, findings an "'" questioned costs, and independent auditors' reports on the internal corn'` -' rol structure and compliance with applicable laws and regul is issued as a separate report. �+ 99n', 1st: AMElIGd,Tv >�" The City provides the full range of municipal services contemplated by statute or charter. This includes public safety (police and fire), streets, sanitation, health and social services, culture - recreation, public improvements, planning and zoning, and general administrative services. The City also operates three off -sale liquor stores, a public water and sewer utility, a golf course, and a convention center known as the Earle Brown Heritage Center. Net revenue produced in excess of working capital requirements by the municipal liquor stores operations have been used toward financing current expenditures and capital outlays of the General Fund. REPORTING ENTITY In accordance with GASB Statement 14, The Reporting Entity, the financial statements present the City and its component units. The City includes all funds, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the general purpose financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority of the organizations governing body, and it is able to impose its will on the organization by significantly influencing the programs, projects, activities, or level of services performed or provided by the organization, or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens, on the City. As a result of applying the component unit definition criteria above, certain organizations have been defined in accordance with GASB 14 and are presented in this report as follows: Blended Component Units - reported as if they were part of the City. Discretely Pre Component Units - entails reporting the component unit financial data in a column separate from the financial data of the City. Related Orm - the relationship of the City with the entity is disci, sec , or Joint Ven Jointly Governed organizations - the relationst_- with the entity is disclosed. - 5 - For each of the categories, the specific entities are identified as follows: Blended Component Units: Economic Development Authority (EDA) and Housing and Redevelopment Authority (HRA) in and for the City of Brooklyn Center: The governing boards are the City Council. The Council reviews and approves EDA and HRA tax levies, and the City provides major community development financing for EDA and HRA activities. Debts issued for EDA and HRA activities are City general obligation. Although the EDA and HRA are legally separate from the City, it is reported as if it were part of the City because its sole purpose is to carry out certain redevelopment projects for the City. Discretely Presented Component Units: None. Related Organizations: The Brooklyn Center Fire Department Relief Association (Association): The Association is organized as a nonprofit organization, legally separate from the City, by its members to provide pension and other benefits to such members in accordance with Minnesota Statutes. Its board of directors is appointed by the membership of the Association and not by the City Council and the Association issues their own set of financial statements. All funding is conducted in accordance with applicable Minnesota Statutes, whereby state aids flow to the Association, tax levies are determined by the Association, and are only reviewed by the City and the Association pay benefits directly to its members. The Association may certify tax levies to Hennepin County directly if the City does not carry out this function. Because the Association is fiscally independent of the City, the financial statements of the Association have not been included within the City's reporting entity. Joint Ventures and Jointly Governed Organizations: The City has several agreements with governmental and other entities which provide reduced costs, better service, and additional benefits to the participants. These programs, which the City participates in, are listed below. Independent School District No. 286 (Earle Brown) , Independent School District No. 279 (Osseo), Independent School District No. 281 (Robbinsdale) , Independent School District No. 11 (Anoka), Independent School District No. 287 (Suburban Hennepin County Area Vocational Institute): - 6 - The Districts, like all school districts in Minnesota, are completely independent of any other governmental entity, including the City. They have their own elected Board of Education, levy their own taxes, determine their own budgets, and issue own bonded debt. Therefore, the Districts do not qualify as component unit of the City's financial statements and related financial statements have not been included within the City's reporting entity. Logis: This consortium of approximately 20 government entities provides computerized data processing and support services to its members. Logis is legally separate; the City does not appoint a voting majority of the Board, and; the Consortium is fiscally independent of the City. Logis Insurance Group: This group provides cooperative purchasing of health and life insurance benefits for approximately 45 government entities. ECONOMIC CONDITION AND OUTLOOK "The Twin Cities ranks among the largest metropolitan economies in the nation, having achieved status as a major national regional center," according to a Metropolitan Council report. Brooklyn Center is a first ring suburb located in the northwestern corner of Minneapolis -St. Paul metropolitan area. Industrial and commercial property make up about 66% of Brooklyn Center's tax capacity value. Its commercial district is anchored by the Brookdale Shopping Center which was built in the 1960s. Other retail and commercial businesses have grown up around the center and vacant land exists to the northeast for a substantial amount of additional business development. The business district is located at the intersection of four major highways which make it a very attractive location. The retail district continues to grow and diversify with addition of new businesses and development projects. New businesses include Circuit City, Wendy's, and Cracker Barrel. Best Buy, Pearle Vision, Audio King, and Telco Credit Union re- located to new locations within Brooklyn Center and expanded their operations. Remodeling and expansion projects include Evergreen Homes elderly assisted living facility, Salvation Army, Marquette Auto Bank, and Omni Tool. MAJOR EVENTS OF 1993 Major Capital I of 1993. The City completed the reconstruction of 69th Avenue North, a major collector street on the north side of the City. The four year project widened the street to provide turn lanes, provided better through- traffic capacity, and included a unique parkway design constructed to save - 7 - I as man trees as possible. In 1994 the City Engineer's Y P . Y g Association of Minnesota awarded Brooklyn Center's 69th Avenue street improvement project its 1994 Municipal Project of the Year award. Major Initiatives. The City retained Dahlgren, Shardlow, and Uban, Inc. to study and provide a basic framework for the future growth and revitalization of the Brooklyn Boulevard corridor. The study identifies two distinct areas in which change to the corridor will come about. The first, is the public right -of -way and the role of Brooklyn Boulevard as a regional traffic arterial. The second is the changing pattern of contemporary land use development and its impact on both the Boulevard and the adjoining residential neighborhoods. In September 1993, the Economic Development Authority of Brooklyn Center authorized Marquette Partners to conduct a study of the Earle Brown Heritage Center. The study reviewed the operations and marketing efforts of the facility and provided recommendations for improving future performance. The study found the Earle Brown Heritage Center to be a high quality, well managed facility of unique value to the community that is making steady progress toward a stabilized position in the competitive marketplace. In December 1993, the City Council authorized the remodeling of the City's public works garage. The project is estimated to cost $1.375 million. Funding for the project will come from the capital improvements, water, and sewer funds. Remodeling is expected to be complete by the end of 1994. Awards for Superior Performance. The Inn on the Farm on the City - owned Earle Brown Heritage Center, was named one of the ten "Outstanding New Inns in America" for 1992 by the editors of Inn Business Review, the leading national business publication for the Bed & Breakfast and inn industry. The ann z-1 awards were based on the recommendations of travel writers, g.,,.,.. and personal inspections by Inn Business Review's own staff. Of the nearly 13,000 Bed & Breakfasts, only 80 inns nationwide have been selected for the award. FI NANCIAL INFORMATION Management of the City is responsible for establishing and maintaining an internal con r l structure designed to ensure that the assets of "- City are protected from loss, theft or misuse and to ensure t de l &.te accounting data are compiled to allow for the preparat.11on of financial statements in conformity with generally a:Af.�pte accounting principles. The internal control structure J-a-- deg g - ,%ed to provide reasonable, but not absolute, assurance t �?se objectives are met. The concept of reasonable assurance - -recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. - 8 - Sin gle Audit As a recipient of federal, state and county financial assis=tance, the government also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management and the independent auditors. As a part of the City's single audit, which was described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. The results of the City's single audit for the fiscal year ended December 31, 1993 provided no instances of material weaknesses in the internal control structure or significant violations of material instances of noncompliance with applicable laws and regulations. Budgeting Controls In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual budget appropriation approved by the City's governing body. Activities of the general fund and special revenue funds are included in the annual appropriated budget. Projet�:t- length financial plans are adopted for the capital projects funds. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by department. Appropriations lapse at year end and generally are not reappropriated as part of the following year's budget. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. General Fund Functions. The following schedule presents a summary of general fund budgeted revenues for 1994, and actual revenues for the fiscal year ended December 31, 1993, compared to 1992. Gener Sources 1993 Increase 1994 1993 1992 - Decrease - -- BUDGET - -- ACTUAL - -- ACTUAL From 1992 Taxes $5,849,414 $5 $4,291,322 $ 715,388 License & permits 289,300 300,480 332,186 - 31,706 Intergovernmen.tal revenue 3,319,818 3,167,214 3,133,495 33,719 Charges for services 936,913 838,883 794,876 44,007 Court fines 144,000 140,104 148,701 -8,597 Misc. rever,m = 184,000 279,211 301,771 - 22,560 Other finer sources 190,000 295,000 620,000 - 325,000 ----- - - - - -- ----- - - - - -- ---- - - - - -- --- - - - - -- TOTAL $10,913,445 $10,027,602 $9,622,351 $ 405,251 ___ ___ _____ ___________ - 9 - Revenues and other financing sources for the General Fund totaled $10,027,602 in 1993, an increase of $405,251 from the previous year. The 1993 City budget called for a tax levy increase of $407,467 (8.2 %) which included a first time levy in the amount of 183,339 for the Economic Development Authority and a decrease in the debt retirement levy of $421,266. Under the provisions of the newly adopted Financial Management Policies, unlike in previous years, the use of fund balance was not available for the 1993 budget. This factor resulted in the loss of approximately $300,000 in revenue and other financing sources. Other financing sources decreased $325,000 when compared to the prior year. In the 1993 budget, the City cutback its issuance of certificates of indebtedness by $360,000 when compared to 1992. For the 1994 budget, the use of certificates of indebtedness was eliminated resulting in significant interest savings. The following schedule presents a summary of general fund budgeted expenditures for 1994, and actual expenditures for the fiscal year ended December 31, 1993, compared to 1992. General Fund Expenditures 1993 Increase 1994 1993 1992 - Decrease BUDGET ACTUAL ACTUAL From 1992 - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- General Govt $1,741,423 $1,560,674 $1,797,895 $- 237,221 Public Safety 4,703,657 3,870,563 3,938,920 - 68,357 Public Works 1,624,036 1,756,187 1,594,190 161,997 Community Sery 41,572 41,325 114,579 - 73,254 Parks & Recr 2,149,887 1,999,270 1,783,811 215,459 Economic Development 171,000 178,703 187,606 -8,903 Non - departmental _ -- 481,870 -- 300,803 - -- 273,273 -- 27,530 TOTAL $10 $9,707,525 $9,690,274 $ 17,251 Expenditures for the General Fund totaled $9,707,525 in 1993, an overall increase of less than 1% when compared to 1992. General government expenditures decreased primarily due to certain custodial positions being transferred to the Community Center budget under parks and recreation. Public safety expenditures were primar -4 _ reduced 'through the consolidation of two departments E.D.A. and Planning and Inspections, into one department f7ominunity Development. In 1993, the amount charged to ends was down $74,178 which accounts for most of the increa n uzzlic works. Community services expenditures primarily reas­.LL� due to the transferring of responsibility for health ins�,�.cticzis to Hennepin County. This action resulted in a savings cc $4._69 when compared to 1992. Parks and recreations increased due to the custodial budget adjustment described earlier and increased capital outlay spending for playground equipment. Since June 1, 1992, the City has been required to pay to the State of Minnesota a 6.5% sales tax on its purchases. The 1993 budget was the first full year of this sales tax impact and it added approximately $100,000 to the City's General Fund expenses. GENERAL FUND BALANCE The fund balance, after an equity transfer of $750,000 to the Central Garage Internal Service Fund, decreased by $429,923 or 8.5% in 1993. The ending fund balance of $4,610,729 is the equivalent of four months of expenditures for the 1994 budget. Property taxes and inter - governmental revenue represent 84% of the budgeted general fund revenue for 1994. The State of Minnesota has structured city finances so most of these revenues are received in the second half of the fiscal year. Minnesota cities typically receive as little as 10% of their total revenues in the first six months of the year. In recognition of this fact, a portion of the fund balance is being designated for working 'capital. The unreserved, undesignated fund balance is zero as a result of this designation. The City compensates all employees upon termination for unused vacation and one third of unused sick time. Such pay is accrued as a liability and an expenditure/ expense as it is earned in all funds. ENTERPRISE OPERATIONS The City's enterprise operations are comprised of seven separate and distinctive activities: Liquor stores, Golf Course, Earle Brown Heritage Center, Recycling, Water utility, Sanitary Sewer utility, and Storm Drainage utility. The liquor operation is composed of three stores. Two are city owned and one is leased. In January 1994, a new 5 year lease was signed for the third store, which secures favorable lease rates. Centerbrook Golf Course began operating in 1988 and began operating at a profit since 1990. Green fees have been increasing each year to keep pace with inflation. Expectations are for the golf course to continue to be profitable and it has begun to pay back its construction loan. The Earle Brow, Heritage Center is a pioneer farmstead which has been historically preserved and restored as a modern multipurpose facility. Its convention center can host conferences, trade shows, and concerts seating 1,000 people in either banquet or theater style. The Tnn On The Farm is a bed and breakfast with eleven rooms available to complement convention activities or to be rented individual-ly. Several of the barns have been restored as unique office settings uhich have found a niche in the market. The City's policy for this enterprise is to set fees and user charges at a level which allows the operations to break -even excluding depreciation on contributed assets. - 11 - I The dwindling supply of landfill space for the disposal of garbage has become a major concern in Minnesota. State and county mandated goals for the diversion of garbage to recycling programs took effect in 1989. In response, the City opened a Recycling and Refuse Fund as an enterprise fund. So far it is operating a recycling program. Expansion into garbage collection will take place when there is clear advantage to be achieved by it. Goals for the recycling program are being met. The Water and Sanitary Sewer utilities are largely developed and already reach all parts of the City. Rates for both water and sanitary sewer are being increased each year to cover inflation and the need for new capital outlays. Three-fourths of the sewer operating expenses are fees paid to the Metropolitan Waste Control Commission for sewage treatment and those fees increased 3.0% in 1993. Planned rate increases should be sufficient to keep them both profitable. During the 1980s, the State of Minnesota passed legislation that requires cities to take greater responsibility for controlling storm water runoff. In response to this, the City created a Storm Drainage Utility Fund. Its fee structure is based upon the amount of water discharged into the storm sewer system. INTERNAL SERVICE FUNDS The Central Garage Internal Service Fund was established on December 31, 1993 to account for the acquisition and maintenance of City vehicles and movable equipment. This fund was established by a transfer of equipment with a net book value of $1,501,160 from the General Fixed Asset Account Group, and equity transfers of $750,000 and $885,437 from the General Fund and the Refunding Bonds of 1987 Debt Service Fund, respectively. AGENCY FUND The Deferred Compensation Agency Fund accounts for the I.C.M.A. Retirement Corporation plan with a market share value totaling $2,532,735 for City employee plan members at year end. DEBT ADMINISTRATION At December 31 1993, the City had five debt issues outstanding. These issue included $2,750,000 of state aid street bonds, $14,620,00(" to F crement debt with government commitment and $275,000 assessment debt with a contingent liability. The City h_, gin. rating from Moody's Investors Service. During 1993, the retired the 1980 Park Bond issue and all Certificates of Indebtedness. - 12 - CASH MANAGEMENT The Finance Department keeps abreast of current trends and procedures for cash management and forecasting so as to ensure efficient and profitable use of the City's cash resources. Cash is invested only in investments authorized by Minnesota Statutes Chapter 475. The yield on investments ranged from a high of 7.7 percent to a low of 3.4 percent. Interest earned during 1993 amounted to $1,912,587 compared to $2,026,732 during 1992. The City's written investment policy is to minimize credit and market risk, while maintaining a competitive yield on its portfolio. All deposits were either insured by federal depository insurance or collateralized. At year end, all deposits were collateralized. Investment securities are held in a custody arrangement with a bank g trust department. All investments are listed in the lowest credit risk category, Category 1. Cash balances for all funds of the City are maintained on a combined basis and invested, to the extent possible, in securities. Earnings from securities are allocated to the various funds in proportion to their relative cash book balances. In the recent past, the City hasn't needed to use any short -term debt and doesn't anticipate such a need in the future. RISK MANAGEMENT The City insures all significant risk. A schedule of such insurance is included in the Statistical Section. INDEPENDENT AUDIT The City Charter and State Statutes require the Council to provide for an audit of the Financial transactions of the City. Deloitte Touche has been retained for that ur ose and their unqualified P P � opinion has been included p in this report. CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Brooklyn Center for its comprehensive annual financial report for the fiscal year ended December 31, 1992. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year - 13 - I only. We believe our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENTS The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Department, with special recognition to Theresa Wesbur, Accountant. We would like to express our appreciation to all members of the Department. We would also like to thank the Mayor, City Council members and the City Manager for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner, and the independent auditors for their valuable and willing assistance. Respectfully submitted, Charles R. Hansen Director of Finance Timothy R. Johnson Assistant Director of Finance L - 14 - Certificate of Achie v ement for Excellence in Financial Rep ortin g Presented to City of Brook Center Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1992 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. E0 Q� OF NITED STATES y w AND y RPOPA President CDRPDRATION SEAL �bati CNlCA6 Executive Director , Deloifte & Touche 400 One Financial Plaza Telephone: (612) 397 -4000 41S 120 South Sixth Street Facsimile: (612) 397 -4450 Minneapolis, Minnesota 55402 -1844 INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council of the City of Brooklyn Center, Minnesota We have audited the accompanying general purpose financial statements of the City of Brooklyn Center, Minnesota (the City) as of December 31, 1993 and for the year then ended, listed in Section IIA of the foregoing table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such general purpose financial statements present fairly, in all material respects, the financial position of the City of Brooklyn Center, Minnesota at December 31, 1993 and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents, which are also the responsibility of the City's management, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City. Such financial statements and schedules have been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the general purpose financial statements taken as a whole. April 8, 1994 Deloittebuche Tohmatsu International City of Brooklyn Center, Minnesota GENERAL PURPOSE FINANCIAL STATEMENTS d The general purpose financial statements are intended to provide a financial overview of municipal operations. These reports are at a summary level and include that data needed to control and analyze current operations to determine compliance with legal and budgetary limitations and to assist in the financial planning process. - 17 - City of Brooklyn Center EXHIBIT 1 All Fund Types and Account Groups COMBINED BALANCE SHEET (Continued next page) December 31, 1993 Fiduciary Totals Governmental Fund Types Proprietary Fund Types Fund Types Account Groups (Memorandum Only) General General Special Debt Capital Internal Fixed Long -Term December 31, General Revenue Service Proiects Enterprise Service A enc Assets Debt 1993 1992 ASSETS Cash, cash equivalents and investments (Notes 2 &3) $5,525,429 $39,528 $1,662,268 $9,575,138 $4,810,827 $2,698,363 $24,311,553 $29,549,588 Receivables: Accounts 50,988 460 15,202 1,015,743 1,082,393 868,374 Delinquent taxes (Note I K) 183,987 7,162 191,149 351,199 Special assessments: ~ Deferred 26,430 428,305 997,804 86,288 1,538,827 1,806,081 0 Delinquent 1,100 6,685 31,423 3,860 43,068 46,044 Due from other funds (Note 11) 147,584 147,584 206,389 Due from other governments 11,927 148,006 1,644,536 164,721 1,969,190 1,260,697 Inventories and supplies (Note 1 G) 319,790 319,790 283,981 Prepaid expenses 153,342 153,342 148,588 Interfund advances (Note 11) 105,074 1,853,013 1,958,087 1,977,344 Restricted investments (Note 1H) 4,184,451 1,000,000 4,000,000 9,184,451 5,000,000 Investments for deferred compensation plan - at market (Note 13) $2,532,735 2,532,735 2,241,152 Property, plant and equipment (Note 4) 34,524,655 3,136,597 $12,260,340 49,921,592 48,742,348 Lees accumulated depreciation (7,763,063) (1,835,437) (9,398,500) (7,284,190) Amount available in Debt Service Funds $5,846,719 5,846,719 7,279,029 Amount to be provided for General Long - Term Debt 11,798,281 11,798,281 11,955,971 Total Assets $5,877,405 $215,524 $6,281,709 $ 15,271,862 $37,316,163 $4,199,523 $2,532,735 $12,260,340 $17,645,000 $101,600,261 $104,432,575 ....sass. ....xaxxa s..xss. ==ri==ms= ....=.==x ss :sa==ss ===s=ass xxsssssax ' ====== --- assaxa== x :=sa=ss =a ...=sa=ss (See notes to financial statements) I I we"" M " " M City of Brooklyn Center EXHIBIT 1 All Fund Types and Account Groups COMBINED BALANCE SHEET (Continued from prior page) December 31, 1993 Fiduciary Totals Governmental Fund Types Proprietary Fund Types Fund Types Account Groups (Memorandum Only) General General Special Debt Capital Internal Fixed Long -Term December 31, LIABILITIES, EQUITY AND OTHER CREDITS General Revenue Service Projects Enterprise Service Agency Assets Debt 1993 1992 Liabilities Accounts payable $277,288 $2,602 $62,622 $404,212 $746,724 $664,770 Due to other funds (Note 11) 147,584 147,584 206,389 Accrued salaries and wages 123,328 2,400 45,173 $216,544 387,445 322,006 Accrued vacation & sick pay (Note 11) 537,112 17,519 43,960 598,591 568,191 Intergovernmental payable 4,961 76,404 548 81,913 91,877 Temporary improvement notes (Note 3) 1,371,744 1,036,659 305,479 2,713,882 2,939,857 Deferred revenue 323,987 27,530 $434,990 2,655,925 3,442,432 3,215,690 Interfund loans (Note 11) 698,143 1,259,944 1,958,087 1,977,344 Cart. of indebtedness & G.O. bonds payable (Note 5) 0 855,000 G.O. state aid street bonds payable (Note 5) $2,750,000 2,750,000 2,885,000 Special assessment bonds payable (Note 5) 275,000 275,000 385,000 Tax increment bonds payable (Note 5) 14,620,000 14,620,000 15,110,000 Deferred compensation funds held for participants (Note 13) $2,532,735 2,532,735 2,241,152 Total Liabilities 1,266,676 2,324,007 434,990 3,775,673 2,058,768 216,544 2,532,735 17,645,000 30,254,393 31,462,276 I � Equity and Other Credits Contributed capital (Note 6) 21,581,512 3,136,597 24,718,109 21,874,890 Investment in general fixed assets $12,260,340 12,260,340 15,151,851 Retained earnings: Reserved: Special assessments 90,148 90,148 95,645 Plant expansion (Note 1 H) 4,000,000 4,000,000 4,000,000 Unreserved 9,585,735 846,382 10,432,117 9,137,472 Fund Balances (Deficits): Reserved: Debt service 5,846,719 5,846,719 7,279,029 Unexpended appropriations 679,551 679,551 1,057,958 Dedicated housing account (Note 1H) 1,000,000 1,000,000 1,000,000 Interfund loans 105,074 1,853,013 1,958,087 1,977,344 Bond proceeds 0 562,130 Unreserved: Designated: Working capital 4,466,375 4,466,375 4,899,499 Unexpended appropriations 39,280 39,280 38,079 Undesignated (2,108,483) 7,963,625 5,855,142 5,898,402 Total Equity and Other Credits 4,610,729 (2,108,483) 5,846,719 11,496,189 35,257,395 3,982,979 12,260,340 71,345,868 72,970,299 TOTAL LIABILITIES, EQUITY &OTHER CREDITS $5,877,405 $215,524 $6,281,709 $15,271,862 $37,316,163 $4,199,523 $2,532,735 $12,260,340 $17,645,000 $101,600,261 $104,432,575 zaz ssss sszsaa :sssaasasssze :asaassas ssssaaxz xxsezz axaxx :zx asxxxxss aaxxxxxs aaaxsxxe osxxxxxx cxaxxx :x szszxsax xxxzz =zzsx xeezczxx (See notes to financial statements) I City of Brooklyn Center EXHIBIT 2 All Governmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1993 Totals Special Debt Capital (Memorandum Only) Revenues General Revenue Service Projects 1993 1992 Taxes and special assessments $5,006,710 $1,526,425 $454,085 $584,504 $7,571,724 $7,089,428 Licenses and permits 300,480 300,480 332,186 Intergovernmental 3,167,214 240,781 58,410 213,458 3,679,863 4,337,059 Charges for services 838,883 11,483 850,366 813,646 Court fines 140,104 140,104 148,701 Investment earnings 249,688 1,838 332,322 746,920 1,330,768 1,430,982 Miscellaneous 29,523 699,144 728,667 827,972 Total Revenues 9,732,802 1,780,527 844,817 2,244,028 14,801,972 14,979,974 Expenditures Current: General government 1,560,674 1,560,674 1,797,895 Public safety 3,870,563 3,870,563 3,938,920 Public works 1,756,187 1,756,187 1,594,190 Community health services 41,325 41,325 114,579 Parks and recreation 1,999,270 23,398 2,022,668 1,812,933 Economic development 178,703 1,042 495,405 675,150 611,293 Nondepartmental 300,803 300,803 273,273 Capital outlay 2,629,938 2,629,938 3,324,164 Debt service: Principal retirement 1,710,000 1,710,000 1,880,000 Interest and fiscal charges 97,653 1,188,270 113,781 1,399,704 1,507,157 Total Expenditures 9,707,525 122,093 2,898,270 3,239,124 15,967,012 16,854,404 Excess or Deficiency( -) of Revenues Over Expenditure 25,077 1,658,434 (2,053,453) (995,098) (1,365,040) (1,874,430) Other Financing Sources or Uses( -) Operating transfers in 175,000 1,746,580 395,221 2,316,801 3,541,226 Operating transfers out (1,525,591) (240,000) (536,020) (2,301,611) (3,810,953) Proceeds from sale of refunding bonds 4,270,000 Sale of certificates of indebtedness 120,000 120,000 480,000 Total Other Financing Sources or Uses( -) 295,000 (1,525,591) 1,506,580 (140,799) 135,190 4,480,273 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 320,077 132,843 (546,873) (1,135,897) (1,229,850) 2,605,843 Fund Balances (Deficits) January 1 5,040,652 (2,241,326) 7,279,029 12,632,086 22,710,441 20,104,598 Equity Transfers Out (750,000) (885,437) (1,635,437) Fund Balances (Deficits) December 31 $4,610,729 ($2,108,483) $5,846,719 $11,496,189 $19,845,154 $22,710,441 (See notes to financial statements) - 20 - City of Brooklyn Center EXHIBIT 3 General and Special Revenue Funds COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 1993 General Fund Special Revenue Funds Actual Over Actual Over Under( -) Under( -) Budget Actual Budget Budget Actual Budget Revenues Property taxes $5,350,325 $5,006,710 ($343,615) $1,213,750 $1,526,425 $312,675 Licenses and permits 300,230 300,480 250 Intergovernmental 3,158,489 3,167,214 8,725 217,491 240,781 23,290 Charge for services 1,072,816 838,883 (233,933) 10,000 11,483 1,483 Court fines 200,000 140,104 (59,896) Investment earnings 210,000 249,688 39,688 1,500 1,838 338 Miscellaneous 11,659 29,523 17,864 Total Revenues 10,303,519 9,732,602 (570,917) 1,442,741 1,780,527 337,786 Expenditures General government 1,685,051 1,560,674 (124,377) Public safety 4,150,472 3,870,563 (279,909) Public works 1,841,380 1,756,187 (85,193) Community health services 51,325 41,325 (10,000) Parks and recreation 2,192,127 1,999,270 (192,857) 25,000 23,398 (1,602) Economic development 190,000 178,703 (11,297) 1,100 1,042 (58) Nondepartmental 488,164 300,803 (187,361) Interest and fiscal charges 170,000 97,653 (72,347) Total Expenditures 10,598,519 9,707,525 (890,994) 196,100 122,093 (74,007) Excess or Deficiency(-) of Revenues Over Expenditures (295,000) 25,077 320,077 1,246,641 1,658,434 411,793 Other Financing Sources or Uses( -) Operating transfers in 175,000 175,000 Operating transfers out (1,614,463) (1,525,591) 88,872 Sale of certificates of indebtedness 120,000 120,000 Total Other Financing Sources or Uses( -) 295,000 295,000 0 (1,614,463) (1,525,591) 88,872 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 0 320,077 320,077 (367,822) 132,843 500,665 Fund Balances (Deficits) January 1 5,040,652 5,040,652 (2,241,326) (2,241,326) Equity Transfer Out (750,000) (750,000) Fund Balances ( Deficits) December 31 $4- 290652 $4610,729 $320 -077 ($2609 -148) ($2,108 -483) $500665 (See notes to financial statements) - 21 - City Y of Brooklyn Center EXHIBIT 4 Proprietary Fund Types COMBINED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1993 Internal Totals Enterprise Service (Memorandum Only) Operating Revenues Funds Funds 1993 1992 Sales and user fees $8,417,244 $8,417,244 $7,161;117 Cost of sales 2,244,689 2,244,689 2,039,205 - Net Operating Revenues 6,172,555 6,172,555 5,121,912 - - - - -- ---- - - - - -- ---- - - - - -- Operating Expenses Personal services 1,999,204 $39,450 2,038,654 1,726,959 Supplies 234,704 234,704 205,080 Other services 2,225,321 2,000 2,227,321 2,232,689 .Insurance 52,521 52,521 43,751 Utilities 322,717 322,717 302,646 Rent 69,772 69,772 53,416 Depreciation 795,527 795,527 818,130 - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- Total Operating Expenses -- 5,_699,766 -- 41 -450 - 5,741 -216 -- 5-382,671 Operating Income Loss H 472,789 (41,450) 431,339 (260,759) Nonoperating Revenues or Expenses H Investment earnings 519,933 61,886 581,819 595,750 Special assessments (for service hookups and delinquencies) 30,407 30,407 28,580 Other revenue 2,036 2,036 3,145 Interest and fiscal agent fees (84,491) (84,491) (84,838) Nonoperating Totals 467,885 61,886 529,771 542,637 - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- income Before Operating Transfers 940,674 20,436 961,110 281,878 Operating Transfers In 84,810 84,810 334,727 Operating Transfers Out( -) (100,000) (100,000) (65,000) ---- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- Net Income 925,484 20,436 945,920 551,605 Depreciation on contributed assets that reduces contributed capital 343,228 343,228 335,605 Retained Earnings January 1 12,407,171 825,946 13,233,117 12,345,907 Retained Earnings December 31 $13,675,883 $846,382 $14,522,265 $13,233,117 (See notes to financial statements) - 22 - City of Brooklyn Center EXHIBIT 5 Proprietary Fund Types COMBINED STATEMENT OF CASH FLOWS For the Year Ended December 31, 1993 Internal Totals Enterprise Service (Memorandum Only) Cash flows from operating activities: Funds Funds 1993 1992 Operating income (loss) $472,789 ($41,450) $431,339 ($260,759) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating actvities: Depreciation 795,527 795,527 818,130 Changes in assets and liabilities: Accounts receivable (278,177) (278,177) (58,323) Inventories (35,829) (35,829) 31,124 Prepaid expenses (4,754) (4,754) (23,402) Accounts payable 90,709 90,709 (191,772) Accrued salaries and leave 31,209 31,209 (11,513) Accrued health insurance liability 26,454 25,454 (5,779) Other nonoperating income 32,443 32,443 31,725 Net cash provided by (used for) operating activities 1,103,917 (15,996) 1,087,921 329,431 - - - - -- - - - - - -- -- - - - - -- -- - - - - -- Cash flows from noncapital financing activities: Net repayments under revolving loan arrangement 286,222 286,222 (65,693) Interest paid on revolving loan (84,491) (84,491) (82,898) Operating transfers in 84,810 84,810 334,727 Operating transfers out - (100,000) - (100,000) - (65,000) Net cash provided by noncapital financing activities 186,541 186,541 121,136 - - - - -- -- - - - - -- -- - - - - -- Cash flows from capital and related financing activities: Capital contributions 49,850 1,635,437 1,685,287 151,167 Acquisition and construction of capital assets (1,250,812) (1,250,812) (1,303,208) Principal paid on revenue bonds (45,000) Interest paid on revenue bonds (1,940) Proceeds from sale of equipment 258 - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- Net cash provided by (used for) capital and related financing activities (1,200,962) 1,635,437 434,475 (1,198,723) -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- Cash flows from investing activities: Interest on investments 519,933 61,886 581,819 595,750 Change in restricted assets 121,755 Net cash provided by Investing activities - 519,933 - 61-886 - 581-819 - 717,505 Net increase (decrease) in cash and cash equivalents 609,429 1,681,327 2,290,756 (30,651) Cash and cash equivalents at beginning of year 4,201,398 1,017,036 5,218,434 5,249,085 Cash and cash equivalents at end of year $4, 810,827 $2698,363 $7, 509190 $5_218,434 (See notes to financial statements) - 23 - City of Brooklyn Center j NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1993 Note 1: Summary of Significant Accounting Policies The City of Brooklyn Center, Minnesota (City) was formed and operated pursuant to applicable Minnesota laws and statutes. The governing body consists of a five - member City Council elected at large to serve four -year staggered terms. A. Financial Reporting Entity of the City In accordance with GASB Statement No. 14, The Reporting Entity, the financial statements present the City and its component units. The City includes all funds; organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the general purpose financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority of the organizations governing body, and it is able to impose its will on the organization by significantly influencing the programs, projects, activities, or level of services performed or provided by the organization, or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City. As a result of applying the component unit definition criteria above, certain organizations have been defined in accordance with GASB 14 and are presented in this report as follows: BLENDED COMPONENT UNITS - reported as if they were part of the City. DISCRETELY PRESENTED COMPONENT UNITS - entails reporting the component unit financial data in a column separate from the financial data of the City. RELATED ORGANIZATIONS - the relationship of the City with the entity is disclosed, or JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS - the relationship with the entity is disclosed. - 24 - Note 1: Summary of Significant Accounting Policies (continued) A. Financial Reporting Entity of the City (continued) For each of the categories, the specific entitles are identified as follows: BLENDED COMPONENT UNITS: Economic Development Authority (EDA) and Housing and Redevelopment Authority (HRA) in and for the City of Brooklyn Center: The governing boards are the City Council. The Council reviews and approves EDA and HRA tax levies, and the City provides major community development financing for EDA and HRA activities. Debts issued for EDA and HRA activities are City general obligations. Although the EDA and'HRA are legally separate from the City, they are reported as if they were part of the City because their sole purpose is carry out certain redevelopment projects for the City. DISCRETELY PRESENTED COMPONENT UNITS: None. RELATED ORGANIZATIONS: The Brooklyn Center Fire Department Relief Association (Association): The Association is organized as a nonprofit organization, legally separate from the City, by its members to provide pension and other benefits to such members in accordance with Minnesota Statutes. Its board of directors is appointed by the membership of the Association and not by the City Council and the Association issues their own set of financial statements. All funding is conducted in accordance with applicable Minnesota Statutes, whereby state aids flow to the Association, tax levies are determined by the Association, and are only reviewed by the City and the Association pays benefits directly to its members. The Association may certify tax levies to Hennepin County directly if the City does not carry out this function. Because the Association is fiscally independent of the City, the financial statements of the Association have not been included within the City's reporting entity. (See Note 9 for disclosures relating to the pension plan operated by the Association.) The City's portion of the costs of the Association's pension benefits are included in the General Fund under public safety. - 25 - Note 1: Summary of Significant Accounting Policies (continued) A. Financial Reporting Entity of the City (continued) JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS: The City has several agreements with governmental and other entities which provide reduced costs, better service, and additional benefits to the participants. These programs, which the City participates in, are listed below and amounts recorded within the current year financial statements are disclosed. Independent School District No. 286 (Earle Brown) , Independent School District No. 279 (Osseo), Independent School District No. 281 (Robbinsdale) , Independent School District No. 11 (Anoka), Independent School District No. 287 (Suburban Hennepin County Area Vocational Institute): The Districts, like all school districts in Minnesota, are completely independent of any other governmental entity, includin g Y the City. They have their own elected Board of Education, levy their,own_ taxes, determine their own budgets, and issue their own bonded debt. Therefore, the Districts do not qualify as component units of the City's financial statements and their related financial statements have not been included within the City's reporting entity. Logis: This consortium of approximately 20 government entities provides computerized data processing and support services to its members. Logis is legally separate; the City does not appoint a voting majority of the Board, and; the Consortium is fiscally independent of the City. The total amount recorded within the 1993 financial statements of the City was $217,182 for services provided which is allocated to the various funds based on applications. Logis Insurance Group: This group provides cooperative purchasing of health and life insurance benefits for approximately 45 government entities. The total amount recorded within the 1993 financial statements of the City was $442,112 for services provided. B. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government - 26 - I S Note 1: Summary of Significant Accounting Policies (continued) ' B. Fund Accounting (continued) resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into seven generic fund types and three broad fund categories as follows: GOVERNMENTAL FUNDS: General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. v - e Special Revenue Funds Special Revenue Funds are used to P P account for the proceeds of certain specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest and related costs. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities, other than those financed by proprietary funds. PROPRIETARY FUNDS: Enterprise Funds - Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis. ' FIDUCIARY FUNDS: Agency Funds - Agency Funds are used to account for assets held by the City as an agent for others. ' - 27 - Note 1: Summary of Significant Accounting Policies (continued) C. Fixed Assets and Long -Term Liabilities The accounting and reporting of fixed assets and long -term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for ' on a spending or "financial flow" measurement, which means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases ' (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in the governmental funds. Public domain general fixed assets consisting of certain improvements other than buildings, including roads, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems have been excluded from general fixed assets, as such items are immovable and of value only to the City. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if historical cost is unavailable. Donated fixed assets are valued at their estimated market value as of ' the date donated. The fixed assets of the proprietary funds are depreciated using the straight -line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Water & Sewer Mains & Lines 100 years Buildings and Structures 20 -40 years Water Wells and Storage Tanks 15 -50 years Sewer Lift Stations 15 -40 years Machinery and Equipment 5 -20 years Furniture and Fixtures 5 -20 years Public Utility assets financed by special assessments are recorded as contributions. Long -term liabilities expected to be financed from ' governmental funds are accounted for in the General Long -Term Debt Account Group, not in the governmental funds. All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operations of these funds are included on the balance sheet. Fund equity - 28 - I Note 1: Summary of Significant Accounting Policies (continued) C. Fixed Assets and Long -Term Liabilities (continued) (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund -type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. D. Basis of Accounting Governmental funds and agency funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Major revenues that are susceptible to accrual include taxes, special assessments, intergovernmental revenues, charges for services, and investment earnings. Major revenues that are not susceptible to accrual, include licenses and permits, fees and miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected. Interest on special assessments is recognized as revenue when due, net of delinquencies. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is ' incurred, except for principal and interest on general long -term debt which is recognized when due. All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned and expenses are recognized when the P g Y are incurred. Unbilled Water and Sewer fund utility service receivables are recorded at year end. E. Budgets and Budgetary Accounting The City follows these procedures establishing the budgetary data reflected in the financial statements: 1. In August, the City,Y Manager submits to the City Council proposed operating budgets for the fiscal year commencing the following January. The operating budgets include expenditures and the means of financing them. 2. The Count mails individual property tax notices showing Y P P Y g the taxes which would result from the proposed budgets of all ' taxing units to each property in November. 3. Public hearings are conducted to obtain taxpayer comments. ' - 29 - Note 1: Summary of Significant Accounting Policies (continued) E. Budgets and Budgetary Accounting (continued) 4. The budgets are legally enacted through passage of a g g Y g P resolution by the City Council in the month of December. 5. The City Council must authorize any transfer of budgeted amounts between departments within any fund. 6. Supplemental appropriations during the year may only be made by the City Council. These amounts must be financed by funds from the contingency reserve set up in the general fund or by additional revenues. 7. All budget amounts lapse at the end of the year to the extent they have not been expended. 8. Formal budgetary integration is employed as a management control device during the year for the General Fund and Special Revenue Funds. Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is alternative) achieved through general obligation Y g g g bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls. 9. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles. 10. Budgetary control is maintained at the department level, in compliance with the City Council's directions. 11. Budgeted amounts are as originally adopted, or as amended by the City Council. Individual amendments were not material in relation to the original appropriations. F. Investments Cash balances from all funds are combined and invested to the extent available in authorized investments (see Note 2). Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by , each fund. Cash investments are stated at amortized cost (which approximates market) except for Deferred Compensation Fund assets which are recorded at market. All highly liquid unrestricted investments with a maturity of three months or less when purchased are considered to be cash equivalents. All of the investments allocated to the proprietary fund types have maturities of 90 days or less. Therefore, the entire balance in such fund types is considered to be cash equivalents. - 30 - , Note 1: Summary of Significant Accounting Policies (continued) G. Inventory Inventories in the proprietary funds are valued at cost, using the first -in /first -out (FIFO) method. The costs of governmental fund type supplies are recorded as expenditures when purchased. H. Restricted Assets and Retained Earnings Investments and Retained Earnings in the amount of $3,700,000 in the Water Utility Fund and $300,000 in the Sanitary Sewer Fund have been restricted for the possible future expansion of the facilities. The City Council passed a resolution establishing a $1,000,000 endowment account in the Capital Project - Economic Development Authority Fund: The endowment account's interest is used by the E.D.A. to fund various housing programs. Investments in the Refunding Tax Increment Bonds of 1992 Debt Service Fund are classified as restricted because the securities have been placed in an irrevocable trust with an escrow agent. I. Accumulated Unpaid Vacation and Sick Pay ' The City pays employees severance pay upon termination of employment based on accumulated sick leave and accrued vacation. Such pay is accrued as an expenditure /expense as it is earned. J. Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent_ those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balance represents tentative plans for future use of financial resources. K. Property Tax Property tax levies are set by the City Council in December of each year, and are certified to Hennepin County for collection ' in the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Revenues are accrued and recognized in the year collectible, net of delinquencies. ' - 31 - Note 1: Summary of Significant Accounting Policies (continued) K. Property Tax (continued) Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to cities and other taxing districts two times a year, in July and December. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by deferred revenue because they are not known to be available to finance current expenditures. At December 31, 1993, the City has recorded $140,000 in deferred revenue for the General Fund for estimated property tax abatements that are anticipated to be repaid to the County in early 1994. L. Reclassification Certain 1992 accounts have been reclassified to conform to the 1993 presentation. M. Total Columns on Combined Statements Total columns on the Combined Statements are captioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. 32 - , Note 2: Cash and Investments A. Deposits In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council. All such depositories are members of The Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City treasurer or in a financial institution other than that furnishing the collateral. At December 31, 1993 the carrying amount of the City's demand deposits was $343,411 and the bank balance was $477,244. Of the bank balance, $219,439 was covered by federal depository insurance (risk category A) and the remainder by collateral held in the pledging bank's trust department in the City's name (risk category B). Risk Category (A) Insured or collateralized by securities held by the City or its agent in the City's name (B) Collateralized with securities held by the pledging institution's trust department in the City's name (C) Uncollateralized or collateralized with securities held by the pledging institution, but not in the City's name B. Investments The City may also invest idle funds as authorized by Minnesota Statutes, as follows: (a) Direct obligations or obligations guaranteed by the United States or its agencies. - 33 - Note 2: Cash and Investments (continued) B. Investments (continued) b Shares of investment under ( ) tment com anies P the Federal Investment Company Act of 1940 and whose only investments are in securities described ' in (a) above. (c) General obligations of the State of Minnesota or any of its municipalities. (d) Bankers acceptances of United States banks eligible for purchase by the Federal Reserve System. (e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. (f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers. (g) Future contracts sold under authority of Minnesota Statutes 471.56, subdivision 5. The City's investments are categorized below to give an indication of the level of custodial credit risk assumed at year -end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counter party's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counter party, or by its trust department or agent, but not in the City's name. Balances at December 31, 1993 ■ Credit Risk Category Carrying Market Securities Type 1 2 3 Amount Value U.S. Governments $15,604,400 $15,604,400 $15,790,431 Federal Agencies 10,335,000 10,335,000 10,431,140 Commercial Paper 3,200,000 3,200,000 3,167,761 ---- - - - - -- - - - - - -- - - - - - -- ---- - - - - -- ---- - - - - -- $29,139,400 - - - - $0 - - - - $0 $29,139,400 $29,389,332 - 34 - , S NOTE 2: Cash and Investments (continued) SUMMARY OF CASH AND INVESTMENTS Balances at December 31, 1993 Cash in Banks: Carrying Amount Marquette Bank Brookdale, Brooklyn Center, Minnesota $204,257 First Bank, Minneapolis, Minnesota 10 American Bank, St. Paul, Minnesota 51 Riverside Bank, Minneapolis, Minnesota 139,093 Total Cash in Bank $343,411 Investments: Investment Twe Intel est Rate Maturity U.S. Treasury bonds 3.4--- 7,610 1994 -1998 $15,604,400 Federal Home Loan Bank bonds 4.£-7.2 ?l0 1994 -1997 3,900,000 Federal Home Loan Mortgage bonds 7.2 1998 300,000 Federal National Mortgage Association bonds =1.4 -7.R 0r0 1994 -1998 6,135,000 Commercial Paper 3.4% 1994 3,200,000 Total Investments $29,139,400 Minnesota Municipal Money Market 1,016,738 Money Market Fund, First Trust, St. Faa 1, Minnesota 160,086 Total Cash and Invesmmer f!w $30,659,635 Accrued interest on investments 257,045 Discounts on investments (153,710) Premiums on investments 41,407 Change funds 5,685 Performance Deposits (27,940) Temporary Improvement Note �`� t .0 2,713,882 ---- - - - - -- Total Cash, Cash Equivalents, e ��tr icted Investments $33,496,004 Other Assets - investrr Poois - Deferred 'Compensation Plan $2,532,735 From Exhibit 1, COMBINED BALANCE SHEET Cash and investments $24,311,553 Restricted investments 9,184,451 $33,496,004 Note 3: Temporary Improvement Notes Temporary Improvement Notes represent interfund borrowing to provide interim financing for construction projects or capital outlay expenditures. Such loans bear interest at 8 percent and totaled $2,713,882 and $2,939,857 at December 31, 1993 and 1992, respectively. For collection purposes, all of these notes are considered current, since they are payable on demand. Individual fund note balances at December 31, 1993 were as follows: Interfund Interfund Receivable Payable General $857,003 E. Brown T.I.F. District $1,371,744 Tax Increment Bonds of 1985 87,906 Tax Increment Bonds of 1991 98,507 Refunding Bonds of 1987 72,043 Capital Improvements Furst 980,451 M.S.A. Construction Fun<;'ri 391,021 Spec Assess Const T.1- -t PL-, d 1,036,659 Economic Development Authority 226,951 E. Brown Heritage Center Fund 305,479 TOTALS $2,713,882 $2,713,882 36 - Note 4: Fixed Assets Changes in the General Fixed Assets Account Group during 1993 were as follows: Balance Balance Jan. 1, 1993 Additions Disposals Transfers Dec. 31, 1993 Land $2,368,459 $1,342 $2,369,801 Buildings & Improvements 4,856,703 87,645 4,944,348 Park Improvements 2,869,112 94,152 9,643 2,953,621 Furniture & Fixtures 937,602 75,050 17,026 995,626 Departmental Equipment 4,119,975 199,388 185,822 $3,136,597 996,944 TOTAL GENERAL FIXED ASSETS $15,151,851 $457,577 $212,491 $3,136,597 $12,260,340 j The following is a summary of proprietary fund -type fixed assets at December 31, 1993: Internal Enterprise Service Funds Funds Land $2,738,600 Land Improvements 37,556 Buildings & Improvements 15,949,897 Mains & Lines 14,113,366 Furniture & Fixtures 1,110,889 Departmental Equipment 574,347 3,136,597 - -- Total 34,524,655 3,136,597 Less accumulated depreciation - (7,763,063) - (1,635,437) Net $26,761,592 $1,501, 160 - 37 - Note 5: Long -Term Debt The City's long -term debt includes general obligation bonds, certificates of indebtedness, state aid street bonds, tax increment bonds, and improvement bonds; all of which are recorded in the General Long -Term Debt Account Group. The following is a summary of bond transactions of the City for the year ended December 31, 1993: General Obligation Bonds & G.O. State Special G.O. Tax Certificates Aid Street Assessment Increment of Indebtedness Bonds Bonds Bonds Total - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Bonds payable January 1 $855,000 $2,885,000 $385,000 $15,110,000 $19,235,000 Bonds retired 855,000 135,000 110,000 490,000 1,590,000 ---- - - - - -- ---- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- Bonds payable December 31 $0 $2,750,000 $275,000 $14,620,000 $17,645,000 General Obligation Bonds & Certificates of Indebtedness General Obligation Bonds and Certificates of Indebtedness are backed by the full faith and credit of the City and are paid from property taxes. G.O. State Aid Street Bonds Future allotments from Municipal State Aid for Streets will repay these bonds which are backed by the full faith and credit of the City. Special Assessment Refunding Bonds These bonds are payable primarily from special assessments levied and collected for local improvements. The City has a contingent liability relating to a pledge of full faith and credit on the Special Assessment Bonds. The general credit of the City is obligated only to the extent that liens foreclosed against properties involved in the special assessment districts are insufficient to retire outstanding bonds. G.O. Tax Increment Bonds Tax Incremew-it Bonds will be repaid from incremental tax increases on the property within certain development districts and are backed by the full faith and credit of the City. - 38 - Note 5: Long -Term Debt (continued) Refunding Tax Increment Bonds In a prior year, the City issued $4,270,000 in General Obligation Tax Increment Refunding Bonds, Series 1992A with a net interest rate of 5.329 %. The proceeds of the 1992 bond issue will be used to advance refund $4,180,000 of the City's $5,250,000 General Obligation Tax Increment Bonds, Series 1985A, callable on February 1, 1996 and with a net interest rate of 8.054 %. The proceeds of $4,242,551, together with other City funds in the amount of $250, (after payment of $45,137 in bond issue costs) were used to purchase State and Local Government Securities (SLG's). Those securities were deposited in an irrevocable trust with an escrow agent to provide for the payment of remaining maturities of the refunded bonds at the call date and for the interest on the refunding bonds through the call date. The City is responsible for principal and interest payments on the refunded bonds through the call date. The principal balances of both the refunded and refunding bonds are reported in the General Long -Term Debt Account Group until the call date of the refunded bonds, at which time the refunded bonds will be considered defeased and the related liability will be removed from the General Long -Term Debt Account Group. Long -term debt maturities (including interest of $7,452,250) are as follows: G.O. State Special G.O. Tax Aid Street Assessment Increment Bonds Bonds Bonds Total 1994 $309,071 $111,912 $1,439,570 $1,860,553 1995 306,325 92,131 1,461,130 1,859,586 1996 307,872 53,550 1,501,995 1,863,417 1997 308,588 41,100 1,917,523 2,267,211 1998 308,478 1,975,825 2,284,303 1999 on 2,490,868 12,471,312 14,962,180 $4,031,202 $298,693 $20,767,355 $25,097,250 - 39 - Note 5: Long -Term Debt (continued) Long -term debt obligations outstanding at year -end are summarized as follows: Bond Payment Issue Maturity Authorized Rates % Dates Date Date And Issued Retired Outstanding G.O. State Aid Street Bonds G.O. State -Aid Street Bonds 4.7 -6.65 4 -01 10 -01 09 -01 -91 04 -01 -06 $3,000,000 $250,000 $2,750,000 Total $3,000,000 $250,000 $2,750,000 Special Assessment Bonds 1987 Refunding Bonds 4.7 -5.5 2 -01 8 -01 04 -01 -87 02 -01 -97 $1,200,000 $925,000 $275,000 - - - - -- --- - - - - -- -- - - - - -- Total $1,200,000 $925,000 $275,000 G.O. Tax Increment Bonds 1985 G.O. Tax Increment Bonds 6.75 -8.1 2 -01 8 -01 12 -01 -85 02 -01 -03 $5,250,000 $350,000 $4,900,000 1991 G.O. Tax Increment Bonds 4.7 -6.0 2 -01 8 -01 03 -01 -91 02 -01 -04 -- 6,050,000 -- 600,000 - 5,450,000 Total $11,300,000 $950,000 $10,350,000 Refunding Tax Increment Bonds - - 1992 G.O. Tax Incr Bonds 4.5 -5.6 2 -01 8 -01 02 -01 -92 02 -01 -03 $4,270,000 $0 $4,270,000 Total $4- 270,000 - - - -- $0 $4- 270,_000 Note 6: Contributed Capital During 1993 contributed capital changed by the following amounts: Internal Enterprise Service Funds Funds Additions: Transfers In (See Note 16) $3,136,597 Intergovernmental $49,850 Deductions: Depreciation on contributed assets (343,228) -- - - -- Net Change (293,378) 3,136,597 Contributed Capital, January 1, 1993 21,874,890 ---- - - - - -- --- - - - - -- Contributed Capital, December 31, 1993 $21,581,512 $3,136,597 - 40 - M M M M M M� Ml IMI M men MI MI M MI MI M II Note 7: Segment Information as of and for the Year Ended December 31, 1993 was as follows: E. Brown Enterprise Funds: Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center & Refuse Utility Sewer Drainage Fund Fund Fund Fund Fund Fund Fund Total - - - - -- - - - - - -- - - - - - -- - - - - - -- -- - - - - -- --- - - - - -- - - - - - -- ---- - - - - -- Operating Revenues $2,615,955 $280,033 $1,812,093 $106,763 $848,134 $2,114,429 $639,837 $8,417,244 Depreciation Expense 29,044 23,236 343,228 267,279 126,055 6,685 795,527 Operating Income (Loss) 102,535 52,237 (413,740) 2,669 (78,244) 334,224 473,108 472,789 Operating Transfers In 84,810 84,810 Operating Transfers (Out) (100,000) (100,000) ' Net Income (Loss) (9,933) 569 (343,228) 7,057 233,537 536,236 501,246 925,484 Current Capital Contributions 49,850 49,850 Property, Plant & Equipment: Additions 6,069 7,634 28,839 413,324 400,284 394,662 1,250,812 Deletions 4,457 5,086 307,111 316,654 Net Working Capital 196,902 47,810 (33,102) 84,707 1,290,569 3,604,269 543,633 5,734,788 Total Assets 639,849 `1,783,885 10,761,556 93,118 13,618,191 9,423,223 996,341 37,316,163 Bonds and Other Long -Term Liabilities Payable from Operating Revenues 158,985 1,080,000 1,238,985 Total Equity $354,288 $697,062 $10,223,389 $84,707 $13,570,079 $9,331,559 $996,311 $35,257,395 NOTE 8: Pension Plans: Public Employees Retirement Association (PERA) City employees participate in the pension plans administered by the Public Employees Retirement Association (PERA). In accordance with Government Accounting Standards Board Statement No. 5, the PERA plans are classified as a defined benefit multiple employer cost sharing plans. Disclosures relating to this plan are as follows: A. Plan Description 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 payroll for employees covered by PERF and PEPFF for the year ended December 31, 1993, was $4,057,037 and $1,872,950 respectively; the City's total payroll was $6,957,231. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on member's average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to -�­orapute benefits for Coordinated and Basic members. The retiring :ember receives the higher of step rate benefit accrual formula (Method 1) or a level accrual formula (Method 2) . Under Method 1, the annuity accrual rat-:- for a Basic member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For a Coordinated member, the annuity accrual rate is 1 percent of average salary for each of the first 10 years and 1.5 percent for each remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5 percent for Coordinated '°tembers. For PEPFF members, the annuity accrual rate is 2.5 per�ent for each year of service through June 30, 1993. (Effective July 1, 1993, the annual accrual rate for PEPFF is 2.65 percent.) For PERF members whose annuity is calculated using Method 1, and for ail PEPFF members, a full annuity is available when age plus years of service equal 90. There are different types of annuities availablz to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the - 42 - r NOTE 8: Pension Plans (continued) A. Plan Description (continued) annuity is a able over j oint lives. Members may also leave their P Y J Y contributions in the fund upon termination of public service, in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. B. Contributions Required an Contributions Made Minnesota Statutes Chapter 353 sets the rate for employer and employee contributions. The City makes annual contributions to the pension plans equal to the amount required by state statutes. According to Minnesota Statutes Chapter 356.215, Subd. 4(g), the date of full funding required for the PERF and the PEPFF is the year 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rate to a "required" contribution rate. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as. follows: Statutory Rates Required Employee Employer Rates* Public Employees Retirement Fund: Basic Plan and Coordinated Plan 4.39% 4.67% 9.95% Police & Fire Fund 8.00% 12.00% 18.60% * The recommended rates scheduled above represent the required rates for fiscal year 1993 contributions as reported in the July 1, 1992, actuarial valuation reports. Total contributions made by the City durl'ag fiscal year 1993 were: Percentage of Contribution Covered Payroll Employees EmDlov Em ployees Employer Public Employees Retirement Fund: Basic Plan $ 10,213 $ 13,316 8,:23% 10.73% Coordinated Plan 166,418 176,233 4.23% 4.48% Police & Fire Fund 149,836 224,754 8.00% 12.00% TOTALS $326,467 $414,303 r 43 - NOTE 8: Pension Plans (continued) B: Contributions Reggired and Contributions Made continued The City's contribution for the year ended June 30, 1993, to the Public Employees Retirement Fund, represented approximately .17 percent of total contributions required of all participating entities. For Public Employees Police and Fire Fund, contributions for the year ended June 30, 1993, represented .7 percent of total contributions required of all participating entities. C. Funding Status and Progress Pension Benefit Obligation The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations as of June 30, 1993, are shown below (in millions): PERF PEPFF ----------------- - - - - -- Total pension benefit obligation $5,164 $ -_ 932 Net assets available for benefits, at cost (market value for PERF = $4,515; PEPFF = $1,173) $4,304 $1,091 Unfunded (assets in excess of) pension benefit obligation $ 860 $ (159) The measurement of the ension benefit obligation is based on an P g actuarial valuation as of June 30, 1993. vet assets available to pay pension benefits were valued as of June 30, 1993, Changes in Benefit Provisions Three bills enacted during the 1993 legislative session improved benefits for many members without a material effect on the pension benefit obligation in the PERF or the PEPFF. The early retirement incentive bill permitted a public employer to offer PERA's Basic and Coordinated members an increase of one - fourth percent (.25 %) in the formula multiplier for each year of service, up to the first 30 years, - 44 - Note 8: Pension Plans (continued) C. Fundina Status and Progress (continued) or health insurance coverage to age 65. Also, the survivor protection bill provided benefits to either a surviving spouse or children of PERF Coordinated Plan members who die before age 50. Lastly, the Police and Fire benefit increase bill, which became effective July 1, 1993, permanently increased the PEPFF formula multiplier from 2.5 percent to 2.65 percent of individual's average salary over the five highest consecutive years of earnings. D. Ten -year Historical Trend Information Ten -year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1993. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. E. Related Party Investments As of June 30, 1993 and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. Note 9: Pension Plan - Brooklyn Center Fire Department Relief Association A. Plan Description The City contributes to the Brooklyn Center Fire Department Relief Association ( "Association ") . In accordance with Government Accounting Standards Board Statement No. 5, it is classified as a defined benefit single employer public employee retirement system. Volunteer fire fighters of the City are mel ")c7s of the Association and its pension plan. An actuarial study was completed during 1993 which developed a schedule of benefit increases which will take effect on January 1 of each year. The plan's baseline benefit after 20 years of service and attaining the age 50 increases to $490 per month in 1994, $510 per month in 1995, and $530 per month in 1996. There are additional benefits for service through 30 y <, -:ars. Vesting begins with 10 years of service and benefits are pro -rated for Y =ie ers who have between 10 and 20 years of service. Members may choose to take a lump sum settlement instead of the pension, equal to $3,500 in 1994, $3,750 in 1995, and $4,000 in 1996, times the number of years of service, with a maximum of 30 years. Spouse's, children's and funeral benefits are also provided. These benefit provisions and all other requirements are consistent with enabling state :statutes. The City levies property taxes at the direction of and for the benefit of the association plan and passes through state aids allocated to the plan, all in accordance with enabling state statutes. - 45 - I Note 9: Pension Plan (continued) B. Funding Status and Progress The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected benefit increases, estimated to be payable in the future as a result of service to date. The measure 's i the actuarial resent value projected of credited ro' P P J benefits and is intended to help users assess the funding status of the association plans on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among plans. It is independent of the actuarial funding method used to determine contributions to the plan, discussed in "C" below. The pension benefit obligation was determined as part of an actuarial valuation at January 1, 1993. Significant actuarial assumptions used include (a) a rate of return on the investment of present and future assets of 5 percent per year compounded annually, and (b) no post retirement benefit increases. An actuarial update to the pension obligation is performed annually. On December 31, 1993, the unfunded pension benefit obligation was as follows: Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,406,110 Current Employees - I Employer - financed vested 1,321,142 Employer - financed non - vested 167,459 Total pension benefit obligation 2,894,711 Net assets available for benefits (at cost, market equals $2,780,680) 2,848,075 Unfunded pension benefit obligation $46,636 No changes in actuarial assumption for benefit provisions that would significantly affect the valuation of the pension benefit obligation occurred during 1993. C. Contributions Re fired and Contributions Made Financial requirements of the association plan are determined on an actuarial basis using the entry age normal actuarial cost method. Normal cost is funded on a current basis. The unfunded actuarial accrued liability is to be funded by December 31, 1999. - 46 - Note 9: Pension Plan (continued) C: Contributions Required and Contributions Made (continued) Contributions at the level specified by the last full actuarial study will continue to be made until a new study revises the contribution level. The minimum tax levy obligation is the financial requirement for the year less anticipated state aids. The funding strategy for normal cost should provide sufficient resources to pay plan benefits on a timely basis. Total contributions to the plan in 1993 amounted to $91,829, of which $27,790 was levied by the City of Brooklyn Center and $64,039 was from the State of Minnesota. The contributed amounts were actuarially determined as described above and were based on an actuarial valuation as of January 1, 1991. The contributions represent funding for normal cost of $63,946 and the amortization of the unfunded actuarial accrued liability of $19,844. Significant actuarial assumptions used to compute pension contribution requirements are substantially the same as those used to determine the standardized measure of the pension obligation. The computation of the pension contribution requirements for 1993 was based on the same 'II actuarial assumptions, benefit provision, actuarial funding method, and other significant factors used to determine pension contribution requirements in previous years. D. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten year trend information may be found in the Association's annual financial report for the year ended December 31, 1993. Three year trend information for the Association is as follows: 1993 1992 1991 Available assets as a - - -- - - -- - - -- percentage of benefit obligation 98% 103% 99% Unfunded pension benefit obligation as a percentage of covered payroll *not *not *not applicable applicable applicable City's contribution ** as a percentage of *not *not *not covered payroll applicable applicable applicable *The Brooklyn Center Fire Department is a volunteer organization; thus, no covered payroll exists. * *The City's contribution was made in accordance with actuarially determined requirements. - 47 - Note 9: Pension Plan (continued) E. Related Party Investments As of December 30, 1993, the Association held no securities issued by the City or other related parties. Note 10: Individual Fund Disclosures Deficit fund balances exist in the following funds: Special Revenue Funds: Earle Brown Tax Increment Financin g District: Unreserved deficit fund balance $2,145,869 This deficit is being funded through internal borrowing, which will be repaid from future surplus tax increments. Capital Project Funds: Special Assessment Construction: Unreserved deficit fund balance $753,968 This deficit is being funded through internal borrowing. Bonds may be sold in the future if the balances of special assessments receivable becomes large enough to justify an issue. Note 11: Inter -fund Receivables and Payables Individual inter -fund receivable and payable balances at December 31, 1993, were as follows: Due From /To Other Funds: Receivable fund Payable fund Amount Economic Development Community Development Authority Block Grant $147,584 Inter -fund Loans From /To Other Funds: Receivable fund Payable fund Amount General Fund E. Brown T.I.F. $ 105,074 Municipal State Aid for Construction E. Brown T.I.F. 593,069 Capital Improvements Liquor Fund 179,944 Capital Improvements Golf Course 11080,000 $1,958,087 - 48 - Note 11: Interfund Receivables and Payables (continued) Inter -fund Loan Terms: The loans payable by the Earle Brown Tax Increment Financing District are interest free and have no set repayment schedule. The loan payable by the Liquor Fund is paying interest at the rate of 8.5% and is repaying the loan principal over a period extending through the year 2000. The loan payable by the Golf Course Fund is paying interest at the rate of 5% and is repaying the loan principal over a period extending through the year 2009. Note 12: Contingencies There are several lawsuits pending in which the `City is involved. City Management estimates that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial statements of the City. Note 13: Deferred Compensation Plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan) , subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The City is reporting the activity of this plan as an agency fund and carries its investment at market value. - 49 - Note 14: Post - Employment Health Care Benefits In addition to the pension benefits described in Note 8, the City provides certain health care insurance benefits for city employees who retire before age 65. Substantially all of the City's full time employees may be eligible for those benefits from the time they retire with a full annuity from PERA (Note 8A), until they reach age 65 or become eligible for medicare. Seven employees currently meet this requirement. The cost of retiree health care premiums for the years ended December 31, 1993 and 1992 was $13,996 and $8,199, respectively. In addition, the expenditures in 1993 were increased by $25,454 and reduced by $ 5,779 in 1992 to account for the change in the liability for the estimated cost of employees who will be eligible to enter the program on or before December 31, 1998. Note 15: Operating Leases The City leases space for the operation of one of its three municipal liquor stores, under a five -year lease which expires on January 31, 1994. A new lease has been signed which will run through March 31, 1999. The lease provides for minimum rent payments, plus a pro -rata share of common area expenses. Total rental expense under the lease agreement for the years ended December 31, 1993 and 1992 was $38,896 and $36,031, respectively. Future minimum rent payments are as follows: Year Ending Amount 1994 $24,933 1995 25,447 1996 26,327 1997 27,207 1998 28,087 1999 on 7,040 $138,041 The Earle Brown Heritage Center Fund, which operates as an enterprise fund, leases space to five tenants. Four of the leases have terms greater than one year and two of the leases require annual rent increases to cover the anticipated effects of inflation. Rental revenues and expenditures under the lease agreements are as follows: 1993 1992 Rental Revenues $118,045 $113,273 Rental Expenditures $ 93,302 $ 86,532 - 50 - Note 15: Operating Leases (continued) Total minimum rentals to be received in the future under the lease terms are as follows: Year Ending Amount 1994 $109,631 1995 90,412 1996 55,812 1997 27,792 1998 4,632 $288,279 Note 16: Fund Changes The Council established the Central Garage internal service fund as of December 31, 1993. The Central Garage fund accounts for the acquisition and maintenance of City vehicles and movable equipment. This fund was established by a transfer of equipment with a net book value of $1,501,160 from the General Fixed Asset Account Group, and equity transfers of $ 750,000 and $885,437 from the General Fund and the Refunding Bonds of 1987 Debt Service Fund, respectively, The following funds were closed during 1993: Debt Service Funds - Certificates of Indebtedness Fund - Park Bonds of 1980 Fund General Obligation Tax Increment Bonds of 1983 Fund - 51 - City of Brooklyn Center, Minnesota GENERAL FUND The City f Brooklyn Center Home Rule Charter provides in section Y Y p 7.11 that "there shall be maintained in the City Treasury a classification of Funds which shall provide for a General Fund for the payment of such expenses of the City as the Council may deem proper, and such other funds as may be required by statute, ordinance or resolution ". The General Fund was established to account for all revenues and expenditures which are not required to be accounted for in other funds. It has more diverse revenue sources than other funds. These revenue sources include property taxes, licenses, permits, fines and forfeits, intergovernmental, service charges, rents, and investment earnings. The Fund's resources finance a wide range of functions, including the current operations of general government, public safety, public works, health and welfare, recreation, and non - departmental expenditures. This Fund utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. - 52 - City of Brooklyn Center A -1 General Fund BALANCE SHEET , December 31, 1993 ■ 1993 1992 ASSETS Cash and investments $4,668,426 $5,082,804 Temporary improvement notes 857,003 856,200 Accounts receivable 50,988 74,079 Taxes receivable 183,987 319,112 Due from other governments 11,927 9,561 Interfund loan -E. Brown T.I.F. 105,074 105,074 TOTAL ASSETS $5,877,405 $6,446,830 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $277,288 $277,406 Due to other governments 4,961 Accrued salaries payable 123,328 111,371 Accrued vacation and sick pay 537,112 528,290 Deferred revenue 323,987 489,111 Total Liabiliti 1,266,676 1,406,11 78 - - - - -- --- - - - - -- Fund Balance Reserved for: Interfund loans 105,074 105,074 Unreserved fund balance Designated: Working capital 4,466,375 4,899,499 Appropriated to next budget 39,280 36,079 Total Fund Balance 4,610,729 5,040,652 - TOTAL LIABILITIES AND FUND BALANCE $5,877,405 $6,446,830 - 53 - City of Brooklyn Center AA =2 General Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 1993 1993 Actual Over or Under( -) 1992 Budget Actual Budget Actual Revenues Property taxes $5,350,325 $5,006,710 ($343,615) $4,291,322 Licenses and permits 300,230 300,480 250 332,186 Intergovernmental 3,158,489 3,167,214 8,725 3,133,495 Charges for services 1,072,816 838,883 (233,933) 794,876 Court fines 200,000 140,104 (59,896) 148,701 Investment earnings 210,000 249,688 39,688 262,347 Miscellaneous 11,659 29,523 17,864 39,424 ----- - - ---- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Revenues 10,303,519 - 9,732,602 -- (570,917) - 9,002,351 Expenditures General government 1,685,051 1,560,674 (124,377) 1,797,895 Public safety 4,150,472 3,870,563 (279,909) 3,938,920 Public works 1,841,380 1,756,187 (85,193) 1,594,190 Community services 51,325 41,325 (10,000) 114,579 Parks and recreation 2,192,127 1,999,270 (192,857) 1,783,811 Economic development 190,000 178,703 (11,297) 187,606 Non- departmental 488,164 300,803 (187,361) 273,273 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Expenditures 10,598,519 --------- - 9,707,525 -- (890,994) - 9,690,274 Excess or Deficiency ( -) of Revenues Over Expenditures -- (295,000) - - -- 25,077 - -- 320,077 (687,923) Other Financing Sources Operating transfers in 175,000 175,000 0 140,000 Sale of cert. of indebtedness 120,000 120,000 0 480,000 ---- - - - - -- ---- - - - - -- ----- - - - - -- ---- - - - - -- Total Other Financing Sources 295,000 295,000 0 620,000 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Excess or Deficiency v ( ) of Revenues and Other Financing Sources Over Expenditures 0 320,077 320,077 (67,923) Fund Balance January 1 5,040,652 5,040,652 0 5,108,575 Equity Transfer Out (750,000) (750,000) 0 0 ---- - - - - -- ---- - - - - -- --- - - - - -- ---- - - - - -- Fund - Balance December - 31 $4,290_652 $4,610_729 - $320_077 $5_ 040,652 - 54 - S -1 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1993 1993 Actual Over or Under( -) 1992 Budget Actual Budget Actual Ad Valorem Taxes Property taxes $4,948,325 $4,636,996 ($311,329) $3,893,784 Penalties and interest 2,000 (7,459) (9,459) 1,039 Lodging tax 400,000 376,146 (23,854) 394,960 Special assessments 1,027 1,027 1,539 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Ad Valorem Taxes - 5,350,325 5,006,710 (343,615) 4,291,322 --------- ---- - - - - -- ---- - - - - -- ---- - - - - -- Licenses and Permits Liquor and beer 126,000 104,077 (21,923) 110,036 Building permits 95,250 111,297 16,047 114,516 Mechanical permits 18,000 31,905 13,905 27,861 Sewer and water permits 1,500 620 (880) 3,041 Plumbing permits 7,000 15,701 8,701 12,549 Garbage licenses 2,080 2,005 (75) 2,156 Taxicab licenses 260 540 280 400 Mechanical licenses 3,100 3,435 335 3,483 Food licenses 0 18,321 Service station licenses 1,720 2,326 606 1,365 Vehicle dealer licenses 900 950 50 900 Bowling licenses 700 708 8 700 Cigarette licenses 1,300 1,055 (245) 1,115 Swimming pool licenses (45) (45) 2,415 Sign permits 1,900 3,178 1,278 2,003 Rental dwelling permits 27,975 1 1 ' 089 (16,886) 18,084 Lodging establishments 0 138 Amusement licenses 5,630 5,098 (532) 5,583 Dog licenses 5,915 4,746 (1,169) 5,724 Miscellaneous business license 1,000 1,795 795 1,796 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Licenses and Permits - -- 300,230 - -- 300,480 - - - - -- - 250 332,186 - -- 55 - S -1 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1993 1993 Actual Over or Under( -) 1992 Budget Actual Budget Actual Intergovernmental Federal grants: Miscellaneous grants $22,347 $25,844 $3,497 $7,560 ---- - -, - -- ---- - -' - -- ---- - -' - -- ---- - - - - -- Total Federal Grants 22,347 25,844 3,497 7,560 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- State grants: .Local government aid 1,696,677 1,697,804 1,127 1,787,378 Homestead credit aid 1,177,465 1,162,475 (14,990) 1,033,058 Police pension aid 177,000 205,637 28,637 198,632 Fireman pension aid 70,000 64,039 (5,961) 69,110 Police training 15,000 11,415 (3,585) 6,922 Miscellaneous grants 0 30,835 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total State Grants 3,136,142 3,141,370 5,228 3,125,935 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Intergovernmental Rev. 3,158,489 3,167,214 8,725 3,133,495 Charges for Services General government charges 40,000 37,967 (2,033) 34,934 Public safety charges 21,000 16,861 (4,139) 25,669 Recreation fees 1,011,816 784,055 (227,761) 734,273 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Charges for Services 1,072,816 - -- 838,883 - -- (233,933) - -- 794,876 Court Fines Fines - -- 200,000 - -- 140,104 - -- (59,896) 148,701 Total Court Fines 200,000 140,104 (59,896) 148,701 Miscellaneous Interest on investments 210,000 249,688 39,688 262,347 Forfeited drug money 20,990 20,990 21,297 Other 11,659 8,533 (3,126) 18,127 Total Miscellaneous - -- 221,659 - -- 279- - - -- 211 57,552 301,771 Total Revenues $10,303,519 $9,732,602 ($570,917) $9,002,351 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- - 56 - 1 S = 1 City of Brooklyn Center (Continued from General Fund prior page) SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1993 1993 Actual Over or Under( -) 1992 Budget Actual Budget Actual Other Financing Sources Operating transfers in: Liquor Fund $100,000 $100,000 $0 $65,000 M.S.A. Fund 75,000 75,000 0 75,000 Sale of cert. of indebtedness 120,000 120,000 0 480,000 ---- - - - - -- ---- - - - - -- ---- - - - - -- ----- - - - - -- Total Other Financing Sources 295,000 295,000 0 620,000 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Revenues and Other Sources $10,598,519 $10,027,602 ($570,917) $9,622,351 57 - City of Brooklyn Center S ^2 General Fund SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1993 next page) 1 Actual Over or Under( -) 1992 Budget Actual Budget Actual General Government Mayor and Council: Personal services $31,111 $30,944 ($167) $30,316 Services and other charges 54,430 45,828 (8,602) 48,160 - r- - Total Mayor and Council 85,541 76,772 (8,769) 78,476 ---- - - - - -- --- - - - - -- ---- - - - - -- - -- - - - - -- Charter Commission: Services and other charges 1,500 916 (584) 3,113 Total Charter Commission 1,500 916 (584) 3,113 - - - -- - -- ---- - - - - -- --------- ---- - - - - -- Administrative Office: Personal services 290,669 270,717 (19,952) 332,323 Services and other charges 31,012 20,394 (10,618) 58,360 Capital outlay 2,338 2,338 0 Charged to other funds (22,236) (22,236) 0 (77,266) -- - Total Administrative Office 301,783 271,213 (30,570) 313,417 - - - - - - -- --- - - - - -- - - - - -- - -- - - - - - -- - Elections and Voter Registration: Personal services 23,834 19,297 (4,537) 36,304 Supplies 0 1,560 Services and other charges 3,750 3,669 (81) 6,317 ----- ----- - - - - - -- -- - - - - -- - -- Total Elections 27,584 22,966 (4,618) 44,181 Assessor's Office: Personal services 181,185 184,726 3,541, 174,040 Supplies 4,100 2,552 (1,548) 3,496 Services and other charges 10,350 2,917 (7,433) 4,488 Capital outlay 0 1,741 Total Assessor's Office 195,635 190,195 (5,440) 183,765 ---- - - - - -- - - - - - -- -- ---- - - - - -- ---- - - - - -- Finance: Personal services 364,485 337,086 (27,399) 351,083 Supplies 2,650 2,713 63 1,633 Services and other charges 1,700 1,630 (70) 1,364 Capital outlay 500 652 152 2,100 Charged to other funds (201,436) (195,757) 5,679 (206,556) - Total Finance $167,899 $146,324 ($21,575) $149,624 - 58.- City of Brooklyn Center S = 2 General Fund: SCHEDULE OF EXPENDITURES -- BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1993 next page) 1993 Actual Over or Under( -) 1992 Bu et Actual Budget Actual General Government (continued) Independent Audit: Services and other charges $17,500 $17,500 $0 $.16,450 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Independent Audit 17,500 17,500 Q 16,450 Legal: Services and other charges _ _ 204,196 -- _ 185,216 ___(18,:980) _ 202,220 Total Lecial 204,196 185,216 (18,980`) 202,220 ---- - - - - -- ---- - - - - -- ---- - - - - -- - -- - - - - -- Government Buildings: Personal services 127,932 114,388 (13,544) 246,776 Supplies 28,300 27,089 (1,211) 2`9,617 Services and other charges 166,830 171,357 4,527 160,1Q8 Capital outlay 34,890 16,743 (18,147) 29,169 Total Government Buildings 357,952 - -- 329,577 _(28,375) __ 465,670 Data Processing: Personal services 55,428 51,048 (4,380)' 53,216 Supplies 9 1 ,400 10,040 640 5,353 Services and other charges 190,420 201,569 11,149 164,400 Capital outlay 73,046. 65,850 (7,196) 122,787 Charged to other funds (2,833) (8,512) (5,679) (4,777) R- __ ---------- T ____ Total Data Processing 325,461 319,995 (5,466) 340,979 Total General Government $1,685,051 $1,560,674 ($124,377) $1,797 ^8 95 59 - City of Brooklyn Center S -2 General Fund SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1993 next page) 1993 Actual Over or Under( -) 1992 Budget Actual Budget Actual Public Safety Police Protection: Personal services $2,976,067 $2,810,672 ($165,395) $2,779,280 Supplies 45,419 46,048 629 40,636 Services and other charges 312,206 258,276 (53,930) 233,121 Capital outlay 74,936 68,460 (6,476) 95,740 Total Police Protection 3,408,628 3,183,456 (225,172) 3,148,777 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Fire Protection: Personal services 296,282 272,770 (23,512) 286,026 Supplies 24,500 24,565 65 22,565 Services and other charges 35,480 32,093 (3,387) 46,763 Capital outlay. 43,675 36,448 (7,227) 62,609 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Fire Protection 399,937 365,876 (34,061) 417,963 - -- - - - - -- ---- - - - - -- -- - - - - -- ---- - - - - -- Protective Inspection: Personal services 264,211 257,805 (6,406) 305,335 Supplies 1,750 587 (1,163) 1,157 Services and other charges 4,575 6,131 1,556 2,136 Capital outlay 850 (850) - ---- - - - - -- ---- - - - - -- Total Protective Inspection 271,386 264,523 (6,863) 308,628 Emergency Preparedness: Personal services 34,997 30,419 (4,578) 23,643 Supplies 500 472 (28) 2,135 Services and other charges 7,911 2,880 (5,031) 3,472, -------- -- ---- - - - - -- ---- - - - - -- Total Emergency Preparedness 43,408 33,771 (9,637) 29,250 - - - - -- ---- - - - - -- ---- - - - - -- Animal Control: Personal services 16,318 10,970 (5,348) 11,774 Supplies 320 229 (91) 322 Services and other charges 10,475 11,738 1,263 9,848 Capital outlay 0 12,358 ---- - - - - -- - -- - - - - -- ---- - - - - -- ---- - - - - -- Total Animal Control 27,113 22,937 (4,176) 34,302 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Public Safety $4,150,472 $3,870,563 ($279,909) $3,938,920 - - 60 - City of Brooklyn Center S =2 General Fund SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1993 next page) 1993 Actual Over or Under( -) 1992 Budget Actual Budget Actual Public Works Engineering Department: Personal services $519,346 $459,526 ($59,820) $423,429 Supplies 4,250 4,220 (30) 2,928 Services and other charges 7,925 5,705 (2,220) 6,008 Capital outlay 0 1,077 Charged to other funds (201,045) (140,069) 60,976 (214,247) ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Engineering Dept. 330,476 329,382 (1,094) 219,195 - -- - -- - - -- ---- - - - - -- Street Department: Personal services 567,167 547,694 (19,473) 535,359 Supplies 196,417 164,977 (31,440) 125,361 Services and other charges 154,650 149,476 (5,174) 123,827 Capital outlay 72,910 51,324 (21,586) 61,856 Charged to other funds (100,000) (100,000) 0 (100,000) ---------- ---------- Total Street DeDt. 891,144 813,471 (77,673) 746,403 - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Maintenance Shop: Personal services 183,880 179,290 (4,590) 169,053 Supplies 205,900 222,175 16,275 216,867 Services and other charges 36,300 23,390 (12,910) 80,379 Capital outlay 2,980 2,918 (62) ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Maintenance Shoo - -- 429,060 - -- 427,773 - - -- (1,287) 466,299 Traffic Signals and Lights: Services and other charges 186,000 180,943 (5,057) 159,243 Total Traffic 186,000 180,943 (5,057) 159,243 Weed Control: Services and other charges 4,700 4,618 (82) 3,050 Total Weed Control 4,700 4,618 (82) 3,050 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Public Works $1,841,380 $1,756,187 ($85,193) $1,594,190 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- - 61 - i City of Brooklyn Center SS =2 General Fund SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1993 next page) 1993 Actual Over or Under( -) 1992 Budget Actual Budget Actual Community Services Health Inspection: Service and other charges $10,000 $0 ($10,000) $84,069 Total Health Inspection 10,000 0 (10,000) 84,069 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Social Services: Service and other charges 41,325 41,325 0 30,510 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Social Services 30,510 - - -- 41,325 - - -- 41,325 _--------- 0 - - -- Total Community Services $51,325 $41,325 ($10,000) $114,579 - ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Parks and Recreation Administration: Personal services 291,710 274,464 (17,246) 276,802 Supplies 11,000 7,873 (3,127) 11,741 Services and other charges 27,100 24,698 (2,402) 23,170 Total Administration 329,810 307,035 (22,775) 311,713 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Adult Programs: Personal services 69,926 104,389 34,463 83,660 Supplies 63,797 51,631 (12,166) 45,490 Services and other charges 189,467 150,623 (38,844) 146,544 Capital outlay 296 296 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Adult Programs 323,190 306,939 (16,251) 275,694 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Teen Programs: Personal services 8,719 7,735 (984) 5,525 Supplies 548 765 217 491 Services and other charges 4,947 5,710 763 6,862 Total Teen Programs 12,878 - - -- 14,214 - - -- 14,210 ----- - - - (4) - - -- Children's Programs: Personal services 61,515 62,093 578 62,499 Supplies 11,107 10,963 (144) 10,563 Services and other charges 12,690 12,193 (497) 9,770 - Total Children's Programs 85,312 85,249 (63) 82,832 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- - 62 - S -2 City of Brooklyn Center (Continued from General Fund prior page) SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL For the Year Ended December 31, 1993 1993 Actual Over or Under( -) 1993 Budget Actual Budget Actual Parks and Recreation (continued) General Programs: Personal services $46,472 $35,415 ($11,057) $46,580 Supplies 1,781 6,371 4,590 8,901 Services and other charges 45,087 38,083 (7,004) 33,818 Total General Programs 93,340 79,869 (13,471) 89,299 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Community Center: Personal services 474,124 405,021 (69,103) 282,981 Supplies 66,682 61,058 (5,624) 66,550 Services and other charges 151,465 170,339 18,874 147,331 Capital outlay - - -- 13,325 - - -- - 8,351 - - -- (4,974) - - -- 10,297 Total Community Center 705,596 644,769 (60,827) 507,159 - - - - -- ---------- ---- - - - - -- ---- - - - - -- Park Maintenance: Personal services 349,645 290,314 (59,331) 322,679 Supplies 73,100 73,802 702 56,332 Services and other charges 124,300 113,208 (11,092) 95,583 Capital outlay 93,620 83,875 (9,745) 29,642 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Park Maintenance 640,665 561,199 (79,466) 504,236 - -- - -- - -- - - - - -- Total Parks and Recreation $2,192,127 $1,999,270 ($192,857) $1,783,811 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Economic Development Convention Bureau: Services and other charges 190,000 178,703 (11,297) 187,606 Total Economic Development $190,000 $178,703 ($11,297) $187,606 ----- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Nondepartmental Expenditures not Charged to Departments: Personal services 29,489 206 (29,283) 3,099 Supplies 43,125 26,441 (16,684) 19,595 Services and other charges 405,550 265,078 (140,472) 230,542 Capital outlay 10,000 9,078 (922) 20,037 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Nondepartmental $488,164 $300,803 ($187,361) $273,273 ---- - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- Total Expenditures $10,598,519 $9,707,525 ($890,994) $9,690,274 63 - City of Brooklyn Center, Minnesota SPECIAL REVENUE FUNDS The Special Revenue Funds are established to account for revenues derived from taxes and /or other specific revenue sources. These resources are usually restricted by statute, City Charter or ordinance to finance specific City functions or activities. This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. Earle Brown Farm Tax Increment Financing District This fund has the authority to collect tax increments which are used for the historic restoration of the Earle Brown Farm and for debt service payments of bonds which also were issued for that purpose. Diseased Tree Removal Fund This Fund was established to account for the collection of resources and expenditure of these resources for diseased tree control. Costs are reimbursed by private property owners, or the General Fund, depending upon where the tree was located. Community Development Block Grant Fund The Fund was established to account for funds received under Title I of the Housing and Community Development Act of 1974. Transfers are made from this Fund to the Economic Development Authority Fund where accounting for project costs takes place. - 64 - � No PW " M M " " " " � City nf Brooklyn Center B Special Revenue Funds COMBINING BALANCE SHEET December 31.1SS3 Earle Brown Tax|nor. Oioaaumd Community Financing Tree Development Totals District Removal Block Grant 199 190 ASSETS Cash and investments $39.628 $39.528 $37.303 Accounts receivable 460 460 718 OefonoU special assessments 28.430 26.430 31.638 Delinquent special assessments 1.100 1 1.767 Due from other governments $422 $147.584 148.008 206.389 � --------- ------- ________ --------- _________ TOTAL AOSSETS 8422 $67.518 $147.684 $215.524 $277.817 LIABILITIES AND FUND BALANCES (DEFICITS) ============ ======== ====== ======= ======== ======== / m / Liabilities Accounts payable $2.602 $2.602 $6.533 Intergovernmental payable $70.404 76.404 48.671 Due tu other funds $147.684 147.584 206.389 Temporary improvement notes 1.371.744 1.371.744 1.625.000 Deferred revenue 27.530 27.580 33.407 Advances from other funds 698.143 098.143 088.143 --------- ------- ------- _________ --------- � Total Liabilities 2.148.291 30.132 147.584 2.324.007 2.619.143 --------- ------- ------- --------- --------- Fund Balances (Deficits) Unreserved /2.146.889\ 37.386 0 82.108.483\ (2.241.326) --------- ------- -------- --------- --------- Total Fund Balances (Deficits) (2.145.869) 37.388 D (2.108.483) (2.241.326) _________ _______ ________ _________ _________ TOTAL LIABILITIES AND FUND BALANCES (OEF|C|TG) $422 $67.518 $147.584 $215.524 $277.817 =============================== ======== ====== ======= ======== ======== City of Brooklyn Center 88 =2 Special Revenue Funds (Continued next page) COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL For the Year Ended December 31, 1993 Earle Brown Farm Tax Increment District Diseased Tree Removal Over Over Under( -) Under( -) Budget Actual Budget Budget Actual Budget Revenues Property taxes $1,196,750 $1,508,964 $312,214 Special assessments $17,000 $17,461 $461 Total Property Taxes 1,196,750 1,508,964 312,214 17,000 ~ 17,461 461 Intergovernmental: Federal grants Total Intergovernmental Charges for services: Fees 10,000 11,483 1,483 Total Charges for Services 10,000 11,483 1,483 Miscellaneous: r Investment earnings 1,500 1,838 338 Land Sale Total Miscellaneous 1,500 1,838 338 Total Revenues 1,196,750 1,508,964 312,214 28,500 30,782 2,282 Expenditures Services and other charges 1,100 1,042 (58) 25,000 23,398 (1,602) Capital outlay 0 Interest 170,000 97,653 (72,347) Total Expenditures 171,100 98,695 (72,405) 25,000 23,398 ` (1,602) �. Excess of Revenues Over Expenditures 1,025,650 1,410,269 384,619 3,500 7,384 3,884 Other Financing Sources or Uses ( -) Operating transfers out (1,396,972) (1,284,810) 112,162 Excess or Deficiency (-) of Revenues and Other Sources ^ � Over Expenditures and Other Uses (371,322) 125,459 496,781 3,500 7,384 3,884 Fund Balances (Deficits) January 1 (2,271,328) (2,271,328) 0 30,002 30,002 0 Fund Balances (Deficits) December 31 ($2,642,650) ($2,145,869) $496,781 $33,502 $37,386 $3,884 - 66 - City of Brooklyn Center B = 2 Special Revenue Funds (Continued from prior page) COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 1993 Community Development Block Grant Totals Over Over Under( -) 1993 1993 Under( -) 1992 Budget Actual Budget Budget Actual Budget Actual Revenues Property taxes $1,196,750 $1,508,964 $312,214 $1,379,425 Special assessments 17,000 17,461 461 17,650 Total Property Taxes 1,213,750 1,526,425 312,675 1,397,075 Intergovernmental: Federal grants $217,491 $240,781 $23,290 217,491 240,781 23,290 251,747 Total Intergovernmental 217,491 240,781 23,290 217,491 240,781 23,290 251,747 Charges for services: Fees 10,000 11,483 1,483 18,770 Total Charges for Services 10,000 11,483 1,483 18,770 Miscellaneous: Investment earnings 1,500 1,838 338 1,205 Land Sale 0 0 336,327 Total Miscellaneous 1,500 1,838 338 337,532 Total Revenues 217,491 240,781 23,290 1,442,741 1,780,527 337,786 2,005,124 Expenditures Services and other Charges 26,100 24,440 (1,660) 54,803 Capital outlay 0 0 0 137,590 Interest 170,000 97,653 (72,347) 119,511 Total Expenditures 196,100 122,093 (74,007) 311,904 Excess of Revenues Over Expenditures 217,491 240,781 23,290 1,246,641 1,658,434 411,793 1,693,220 Other Financing Sources or Uses ( -) Operating transfers out (217,491) (240,781) (23,290) (1,614,463) (1,525,591) 88,872 (1,514,826) Excess or Deficiency ( -) of Revenues and Other Sources Over Expenditures and Other Uses 0 0 0 (367,822) 132,843 500,665 178,394 Fund Balances (Deficits) January 1 0 0 0 (2,241,326) (2,241,326) 0 (2,419,720) Fund Balances (Deficits) December 31 $0 $0 $0 ($2,609,148) ($2,108,483) $500,665 N 26 ($2,241,326) - 67 - 1 City of Brooklyn Center, Minnesota DEBT SERVICE FUNDS The Debt Service Funds were established to account for the payment (from taxes and other resources) of interest and principal on long- term general obligation debt. This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the principal and interest are due. ' The City's Debt Service funds included in this section are: Certificates of Indebtedness Debt Service Fund This Fund accounts for the property taxes raised to pay the principal and interest on certificates of indebtedness sold to finance the purchase of capital equipment in'the General Fund. General Obligation State Aid Street Bonds Debt Service Fund This Fund accounts for the accumulation of state aid allotments, for payment of principal and interest on bonds issued in 1991 to finance a comprehensive improvement and upgrading 69th Avenue North as a state aid route. Park Bonds of 1980 Debt Service Fund This Fund was established to account for the accumulation of resources for payment of principal and interest on general obligation bonds authorized by the electorate in 1980 to finance the improvement and equipping of parks, park lands and, related public recreational facilities. These improvements include neighborhood parks, Central Park, Palmer Nature Center, Shingle Creek Trailway and the Arboretum. General Obligation Tax Increment Bonds of 1985 & 1991 Funds These Funds were established to account for the accumulation of resources for payment of principal and interest on general obligation bonds issued in 1985 and 1991 to finance the purchase and redevelopment of the historic Earle Brown Farm in Brooklyn Center. Refundincr Tax Increment Bonds of 1992 Fund: This fund was established to account for the resources that will be used to advance refund the Tax Increment Bonds of 1985. Refunding Bonds of 1987 Fund This Fund was established to account for the collection of special assessments for the payment of principal and interest on general obligation bonds. The bonds were sold during 1987 to refund Improvement Bonds of 1982. - 68 - City of Brooklyn Center C -1 Debt Service Funds COMBINING BALANCE SHEET December 31, 1993 Refunding Tax Tax Tax Increment Increment Increment Refunding Bonds Bonds Bonds Bonds Totals of 1985 of 1991 of 1992 of 1987 1993 1992 ASSETS Cash and investments $477,463 $535,044 $391,305 $1,403,812 $6,832,315 Temporary improvement notes 87,906 98,507 72,043 258,456 446,714 Taxes receivable 21,019 Special assessments receivable: Deferred 428,305 428,305 586,902 Delinquent 6,685 6,685 16,016 i° Restricted Investments $4,184,451 4,184,451 -- - - - - -- -- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- --------- TOTAL ASSETS $565,369 $633,551 $4,184,451 $898,338 $6,281,709 $7,902,966 LIABILITIES AND FUND BALANCES Liabilities Deferred revenue $434,990 $434,990 $623,937 Total Liabilities - 434,990 434,990 623,937 --- - - - - -- --- - - - - -- --- - - - - -- Fund Balances Reserved $565,369 $633,551 $4,184,451 463,348 5,846,719 7,279,029 -- - - - - -- -- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- Total Fund Balances 565,369 633,551 4,184,451 463,348 5,846,719 7,279,029 -- - - - - -- -- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- TOTAL LIABILITIES AND FUND BALANCES $565,369 $633,551 $4,184,451 $898,338 $6,281,709 $7,902,966 City of Brooklyn Center C -2 Debt Service Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1993 Refunding State Tax Tax Tax Certificates Aid Park Increment Increment Increment Refunding of Street Bonds Bonds Bonds Bonds Bonds Totals Indebtedness Bonds of 1980 of 1985 of 1991 of 1992 of 1987 1993 1992 Revenues Property taxes $220,998 $220,998 $632,150 Special assessments $233,087 233,087 266,077 Intergoven mental revenue 58,410 58,410 157,200 Investment earnings 16,628 $8,471 $7,391 217,959 81,873 332,322 244,852 -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- --- - - - - -- --- - - - - -- Total Revenues 296,036 8,471 7,391 217,959 314,960 844,817 1,300,279 -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- --- - - - - -- --- - - - - -- Expenditures Principal $665,000 $135,000 $310,000 140,000 350,000 110,000 1,710,000 1,880,000 Interest 52,800 171,380 11,780 392,095 321,750 219,622 17,158 1,186,585 1,195,204 o Fiscal agent fees 200 602 483 400 1,685 7,714 1 Bond issuance costs 0 79,217 Total Expenditures 717,800 306,580 322,382 532,578 672,150 219,622 127,158 2,898,270 3,162,135 - - - - -- - - - - - -- -- - - - - -- -- - - - - -- - - - - -- -- - - - - -- -- - - - - -- --- - - - - -- --- - - - - -- Excess or Deficiency ( -) of Revenues Over Expenditures (421,764) (306,580) (322,382) (524,107) (664,759) (1,663) 187,802 (2,053,453) (1,861,856) - - - - - -- - - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- --- - - - - -- --- - - - - -- Other Financing Sources or Uses ( -) Proceeds from sale of refunding bonds 0 4,270,000 Operating transfers in 240,000 306,580 560,000 640,000 1,746,580 1,236,007 Operating transfers out (240,000) (240,000) 0 Total Other Financing Sources or Uses (- 240,000 306,580 560,000 640,000 (240,000) 1,506,580 5,506,007 - - - - -- - - - - - -- -- - - - - -- -- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- Excess or Deficiency of Revenues and Other Sources over Expenditures and Other Uses (181,764) 0 (322,382) 35,893 (24,759) (1,663) (52,198) (546,873) 3,644,151 Fund Balances January 1 0 0 504,146 529,476 658,310 4,186,114 1,400,983 7,279,029 3,634,878 Equity Transfer In (Out) 181,764 (181,764) (885,437) (885,437) 0 - - - - - -- - - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- --- - - - - -- -- - - - - -- --- - - - - -- --- - - - - -- Fund Balances December 31 $0 $0 $0 $565,369 $633,551 $4,184,451 $463,348 $5,846,719 $7,279,029 City of Brooklyn Center, Minnesota CAPITAL PROJECTS FUNDS The Capital Projects Funds are established to account for all resources used for the construction or acquisition of capital facilities by the City except those financed by Enterprise Funds. This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. The City's Capital Projects Funds included in this section are: Capital Improvements Fund This Fund was established in 1968 to provide funds, and to account for the expenditure of such funds, for major capital outlays including, but not be limited to, construction or acquisition of major permanent facilities having a relatively long life; and /or to reduce debt incurred for capital outlays. The financing sources of the Fund include ad valorem taxation, transfers from other Funds, issuance of bonds, federal and state grants, and investment earnings. Municipal State Aid for Construction Fund This Fund was established to account for the state allotment of gasoline tax collections used for transportation related construction projects. Special Assessment Construction Fund This Fund was established to account for the resources and expenditures required for the acquisition and construction of capital facilities or improvements financed wholly or in part by special assessments levied against benefitted properties. Housing and Redevelopment Authority Fund (H.R.A.) This fund has authority to levy an ad valorem property tax for the purpose of conducting housing and redevelopment projects. These projects are now done in the E.D.A. Fund and all tax proceeds are transferred to that fund. Economic Development Authority Fund This Fund was established to account for the Economic Development Authority (E.D.A.) of Brooklyn Center. The E.D.A. carries out activities which previously were done by the H.R.A., plus it has authority to operate an enterprise. The Earle Brown Heritage Center operates under this authority and a statement of its operations can be found in the enterprise fund section of this report. The E.D.A. also does redevelopment and housing projects, funded by transfers from the C. D. B. G. and H.R.A. funds. - 71 - City of Brooklyn Center DD = 1 Capital Projects Funds COMBINING BALANCE SHEET December 31, 1993 Municipal State Aid Special Economic Capital for Assessment Development Totals Improvements Construction Construction Authority Fund Fund Fund Fund 1993 1992 ASSETS Cash and investments $5,325,365 $2,123,850 $286,653 $240,847 $7,976,715 $9,438,874 Temporary improvement notes 980,451 391,021 226,951 1,598,423 1,636,944 Accounts Receivable 15,202 15,202 1,745 Taxes receivable 7,162 7,162 11,068 Special assessments: Deferred 997,804 997,804 1,095,734 Delinquent 31,423 31,423 24,422 Due from other funds 147,584 147,584 206,389 Due from other governments 1,619,536 25,000 1,644,536 939,788 Interfund loans: Municipal liquor 179,944 179,944 199,201 Golf course 1,080,000 1,080,000 1,080,000 Earle Brown T.I.F. District 593,069 593,069 593,069 Restricted investments 1,000,000 1,000,000 1,000,000 --- - - - - -- --- - - - - -- - - - - -- --- - - - - -- ---- - - - - -- ---------- TOTAL ASSETS $7,565,760 $4,727,476 $1,315,880 $1,662,746 $15,271,862 $16,227,234 ssssssxx =ss xsxxasxx xxssssam xssxss =s asaxssss xsssssss s= ssss =s LIABILITIES AND FUND BALANCES (DEFICITS) Liabilities Accounts payable $18,521 $19,495 $3,962 $20,644 $62,622 $86,654 Accrued salaries and wages 2,400 2,400 1,522 Accrued vacation and sick pay 17,519 17,519 Intergovernmental payable 548 548 22,880 Temporary improvement notes 1,036,659 1,036,659 1,414,857 Deferred revenue 1,619,536 1,029,227 7,162 2,655,925 2,069,235 Total Liabilities -- 18,521 1,639,031 2069,848 -- 48,273 8,775,673 3595,148 Fund Balances (Deficits) Reserved: Unexpended appropriations 679,551 679,551 1,057,958 Dedicated housing account 1,000,000 1,000,000 1,000,000 Advances to other funds 1,259,944 593,069 1,853,013 1,872,270 Bond proceeds 0 562,130 Unreserved 5,607,744 2,495,376 (753,968) 614,473 7,963,625 8,139,728 Total Fund Balances (Deficits) 7,547,239 3,088,445 (753,968) 1,614,473 11,496,189 12,632,086 --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- ---- - - - - -- ---- - - - - -- TOTAL LIABILITIES AND FUND BALANCES (DE BALANCES {DEFICITS) $7,565,760 $4,727,476 $1,315,880 $1,662,746 $15,271,862 $16,227,234 _______ x= s_xsss csxx =cox xxssxxxx xxxxxx == == sassxs xxxxs = =s - 72 City of Brooklyn Center DD = 2 Capital Projects Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1993 Municipal State Aid Special Housing Economic Capital for Assessment and Development Improvements Construction Construction Redevelop Authority Totals Fund Fund Fund Fund Fund 1993 1992 Revenues Property taxes $121,682 $140,750 $262,432 $128,362 Special assessments $322,072 322,072 374,442 Intergovernmental $162,362 16,304 34,792 213,458 794,617 Investment earnings $429,787 223,811 6,358 86,964 746,920 922,578 Other 6,973 665,386 26,785 - 699,144 - -- 452,221 Total Revenues 436,760 386,173 993,816 137,986 289,291 2,244,026 2,672,220 Expenditures Personal services 152,008 152,008 64,050 Supplies 31 13,458 45 829 14,363 6,298 Services and other charges 68,168 254,445 105,149 342,568 770,330 1,006,963 Capital outlays 159,828 1,074,683 347,600 606,531 2,188,642 2,507,269 Interest 113,756 25 113,781 105,511 Total Expenditures - 228,027 1,342,586 566,550 1,101,961 3,239,124 -- 3,690,091 Excess or Deficiency J of Revenues Over Expenditures 208,733 (956,413) 427,266 137,986 (812,670) (995,098) (1,017,871) - ---- - - - - -- Other Financing Sources or Uses( -) Operating transfers in 16,455 378,766 395,221 2,165,219 Operating transfers out (381,580) (16,454) (137,986) (536,020) (2- 296,127) Total Other Financing Sources or Uses( -) (365,125) (16,454) (137,986) 378,766 (140,799) (130,908) Excess or Deficiency - of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses 208,733 (1,321,538) 410,812 0 (433,904) (1,135,897) (1,148,779) Fund Balance (Deficits) January 1 7,338,506 4,409,983 (1,164,780) 2,048,377 12,632,086 13,780,865 Fund Balance (Deficits) December 31 $7- 547,239 $3088,445 - ($753968) - - -- $0 $1,614,473 $11- 496-189 $12632 -086 - 73 - City of Brooklyn Center S -3 Capital Improvements Fund PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 1993 - Project Over n � () Under 1993 to Date Expended Type of Proiect Appropriations Expenditures Expenditures Appropriations Fire training facility $70,000 $50,000 $50,000 $20,000 Air quality study 21,350 31,128 36,128 (14,778) Central garage improvements 1,375,000 22,313 22,313 1,352,687 Replat 1 -94 property 33,000 (603) 36,541 (3,541) Purchase 4100 -51st Ave. N. 159,397 2,633 159,373 24 ADA trail improvements 90,473 84,530 84,530 5,943 S. Palmer Lake parking lot 15,392 14,210 14,210 1,182 Northport Park- apparatus area 9,202 8,821 8,821 381 Central Park playground area 14,995 14,995 14,995 0 Hockey field lights 14,400 0 14,400 Totals $1,803,209 $228,027 $426,911 $1,376,298 City of Brooklyn Center SS = 4 Municipal State Aid Construction Fund PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 1993 Project Over( -) Under 1993 to Date Expended Project Appropriation Expenditures Expenditures Appropriations Engineer certification training $5,000 $340 $1,885 $3,115 Unity Avenue speed humps 4,025 4,656 4,656 (631) Humboldt Avenue improvements 5,200 6,806 6,806 (1,606) TH100 signals 8,056 7,594 7,594 462 ' 73rd Avenue improvements 10,100 7 7 10,093 Ln 69th Avenue soil correction 997,737 288,804 962,603 35,134 Transportation system study 10,000 13,696 20,325 (10,325) Neighborhood street study 6,200 10,877 13,974 (7,774) Pavement management program 30,070 21,739 21,739 8,331 Twin Lake trail study 3,633 4,975 4,975 (1,342) 69th Avenue landscaping 315,870 249,713 255,753 60,117 Mobile radar trailer 12,418 12,944 12,944 (526) 69th Avenue reconstruction 597,904 632,815 632,815 (34,911) Brooklyn Boulevard pavement markings 9,140 10,124 10,124 (984) Traffic counters 2,709 2,709 (2,709) Sidewalk replacement - Brooklyn Boulevard 59,547 51,834 51,834 7,713 Sidewalk replacement - miscellaneous 16,535 16,405 16,405 130 Freeway Boulevard repair 7,469 6,548 6,548 921 Brooklyn Boulevard layout plan 6,800 6,800 1994 street improvement program 7,900 7,900 --- - - - - -- --- - - - - -- --- - - - - -- -- - - - - -- Totals $2,113,604 $1,342,586 $2,033,696 $79,908 City of Brooklyn Center S -5 Special Assessment Construction Fund PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginninct to December 31, 1993 Project Over( -) Under 1993 to Date Expended Type of Proiect Appropriations Expenditures Expenditures Appropriations 69th Ave Reconstruction $2,486,162 $476,781 $2,530,937 ($44,775) James, Knox & 54th Avenue street study 15 15 (15) Northwest area improvements 7,417 7,417 (7,417) --- - - - - -- -- - - - - -- --- - - - - -- - - - - - -- Totals $2,486,162 $484,213 $2,538,369 ($52,207) I I iliiiw M M M 1� ! l City of Brooklyn Center, Minnesota ENTERPRISE FUNDS The Enterprise Funds were established to account for the financing of self supporting activities of the City which render services on a user charge basis to the general public. Revenues and expenses in these Funds are recognized on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become objectively measurable. Expenses are recognized in the period incurred, if objectively measurable. The City's Enterprise Funds included in this section are: Municipal Liquor Fund: This Fund accounts for the'operations of the City's three .municipal off-sale liquor stores. Golf Course Fund: This fund accour for operations of Centerbrook Golf Course, a 9 hole, par 3 courr, oluned by the City. Earle Brown Heritage Center ',Punc: This fund accounts for the operation of a pioneer farmstead whi(;h has been historically preserved and restored as a modern multipurpose facility. Its convention center can host conferences, trade shows, and concerts seating 1,000 people in either banquet or theater style. The "Inn On The Farm" is a bed and breakfast with eleven rooms available to complement convention activities or be rented individually. Several of the barns have been restored as unique office settings which have found a niche in the market. Recycling and Refuse - _ - his fund accounts for the operation of a state mandated rec ;zz:,ogram. Expans! -,,:)n into refuse collection will take place only when t here is a cle= advantage to be achieved by it. Water Utilities Fund: This Fund accounts for the provision of water to customers. Administration, wells, water storage, and distribution are included. Sanitary Sewer Fund; Thi"S for '_ collection and pumping of sanitary sewage through item of sewer 11 - Lnes and lift stations. Sewage is treated by the Waste Control Commission whose fees represent abcul 7_ o this fund's expenses. Storm Drai7z F `his Fund accounts for the operations and improvements of the otorm water drainage system. It incorporates not only the storm sewer system, but also water structures such as holding ponds and facili-ties to improve water quality. Fees are based upon of amount o w running off a property and vary with both size and absorption characteristics of the parcel. -7 City of Brooklyn Center E -1 Enterprise Funds (Continued next page) COMBINING BALANCE SHEET December 31, 1993 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center & Refuse Utility Sewer Drainage Totals ASSETS Fund Fund Fund Fund Fund Fund Fund 1993 1992 Current Assets Cash and cash equivalents $43,890 $48,624 $226,874 $69,260 $1,043,208 $2,976,747 $402,224 $4,810,827 $4,201,398 Accounts receivable - net 3,774 219,368 7,648 63,806 151,458 45,832 491,886 311,339 Accrued revenue 16,210 125,875 286,165 95,607 523,857 480,492 Assessments receivable: Deferred 84,550 1,738 86,288 91,806 Delinquent 3,745 115 3,860 3,839 Due from other governments 164,721 164,721 104,959 Inventories 274,491 6,009 21,793 17,497 319,790 283,961 Prepaid expenses 1,323 37,030 114,989 153,342 148,588 -- - - - - -- - - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- --- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- Total Current Assets 323,478 54,633 505,065 93,118 1,338,681 3,695,933 543,663 6,554,571 5,626,382 -- - - - - -- - - - - - -- -- - - - - -- -- - - - - -- - - - - -- --- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- 00 Restricted Assets Temporary cash investments 3,700,000 300,000 4,000,000 4,000,000 --- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- Fixed Assets Mains and lines 8,081,664 5,928,788 102,914 14,113,366 13,278,233 Structures 327,595 303,321 9,509,130 4,176,173 1,633,678 15,949,897 16,177,204 Equipment 149,535 142,673 955,423 193,809 174,505 69,291 1,685,236 1,646,062 Land 107,405 1,391,711 925,000 23,938 3,388 287,158 2,738,600 2,451,442 Land improvements 4,228 30,728 2,600 37,556 37,556 -- - - - - -- --- - - - - -- ---- - - - - -- ---- - - - - -- --- - - - - -- --- - - - - -- ---- - - - - -- ---- - - - - -- 588,763 1 ,868,433 11,389,553 12,478,184 7,740,359 459,363 34,524,655 33,590,497 Less: Allowance for depreciation 272,392 139,181 1,133,062 3,898,674 2,313,069 6,685 7,763,063 7,284,190 -- - - - - -- --- - - - - -- ---- - - - - -- ---- - - - - -- --- - - - - -- --- - - - - -- ---- - - - - -- ---- - - - - -- Total Fixed Assets 316,371 1,729,252 10,256,491 8,579,510 5,427,290 452,678 26,761,592 26,306,307 -- - - - - -- --- - - - - -- ---- - - - - -- -- - - - - -- ---- - - - - -- --- - - - - -- --- - - - - -- - - - - -- ---- - - - - -- TOTALS $639,849 $1,783,885 $10,761,556 $93,118 $13,618,191 $9,423,223 $996,341 $37,316,163 $35,932,689 so OB as ' Us +� E -1 (Continued from E. Brown prior page) Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center & Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1993 1992 LIABILITIES AND FUND EQUITY Current Liabilities Accounts payable $78,403 $3,644 $190,631 $8,411 $32,245 $90,848 $30 $404,212 $294,177 Accrued salaries payable 5,737 925 33,448 4,247 816 45,173 18,023 Intergovernmental payable 0 19,326 Accrued vacation and sick pay 21,477 2,254 8,609 11,620 43,960 39,901 Temporary improvement note 305,479 305,479 0 Current portion of long -term debt 20,959 20,959 19,257 - - - - -- - - - - - -- -- - - - - -- - - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- --- - - - - -- --- - - - - -- Total Current Liabilities 126,576 6,823 538,167 8,411 48,112 91,664 30 819,783 390,684 -- - - - - -- - - - - - -- -- - - - - -- - - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- --- - - - - -- --- - - - - -- Lone -Term Liabilities Construction loan 158,985 1,080,000 1,238,985 1,259,944 i -------- --- - - - - -- ---- - - - - -- ---- - - - - -- Total Lone -term Liabilities 158,985 1,080,000 1,238,985 1,259,944 ---- - - - - -- ---- - - - - -- Fund Equity Contributions 692,206 10,223,370 4,997,510 5,668,426 21,581,512 21,874,890 Retained earnings - - - - -- ---- - - - - -- --- - - - - -- --- - - - - -- ---- - - - - -- ---- - - - - -- Reserved: Special assessments 88,295 1,853 90,148 95,645 Plant expansion 3,700,000 300,000 4,000,000 4,000,000 Unreserved 354,288 4,856 19 84,707 4,784,274 3,361,280 996,311 9,585,735 8,311,526 -- - - - - -- -- - - - - -- -- - - - - -- - - - - - -- ---- - - - - -- --- - - - - -- - - - - - -- ---- - - - - -- ---- - - - - -- Total Retained Earnings 354,288 4,856 19 84,707 8,572,569 3,663,133 996,311 13,675,883 12,407,171 -- - - - - -- -- - - - - -- ---- - - - - -- - - - - - -- ---- - - - - -- --- - - - - -- - - - - - -- ---- - - - - -- ---- - - - - -- Total Fund Equity 354,288 697,062 10,223,389 84,707 13,570,079 9,331,559 996,311 35,257,395 34,282,061 -- - - - - -- --- - - - - -- ---- - - - - -- - - - - - -- ---- - - - - -- --- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- TOTALS $639,849 $1,783,885 $10,761,556 $93,118 $13,618,191 $9,423,223 $996,341 $37,316,163 $35,932,689 s :aaaa ssssaa sssssss sxaaaaoa sssss ssaaaoss ssaaaosc sssssca ssasaa�a ss =ss saa City of Brooklyn Center E -2 Enterprise Funds (Continued next page) COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1993 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center & Refuse Utility Sewer Drainage Totals Operating Revenues Fund Fund Fund Fund Fund Fund Fund 1993 1992 Sales and user fees $2,615,955 $280,033 $1,812,093 $106,763 $848,134 $2,114,429 $639,837 $8,417,244 $7,161,117 Cost of sales 1,976,173 29,352 239,164 2,244,689 2,039,205 --- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- Net Operating Revenues 639,782 250,681 1,572,929 106,763 848,134 2,114,429 639,837 6,172,555 5,121,912 --- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- o Operating Expenses Personal services 356,468 128,636 914,048 317,283 182,430 100,339 1,999,204 1,724,539 Supplies 6,481 16,061 128,897 567 68,699 13,999 234,704 205,080 Other services 51,705 17,801 423,723 103,527 128,901 1,439,959 59,705 2,225,321 2,232,689 Insurance 31,534 3,767 17,220 52,521 43,751 Utilities 23,119 8,943 128,677 144,216 17,762 322,717 302,646 Rent 38,896 30,876 69,772 53,416 Depreciation 29,044 23,236 343,228 267,279 126,055 6,685 795,527 818,130 --- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- -- - - - - -- - - - - -- ---- - - - - -- Total Operating Expenses 537,247 198,444 1,986,669 104,094 926,378 1,780,205 166,729 5,699,766 5,380,251 --- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- Operating Income (Loss) 102,535 52,237 (413,740) 2,669 (78,244) 334,224 473,108 472,789 (258,339) --- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- ---- - - - - -- - -- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- E -2 (Continued from prior page) E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center & Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1993 1992 Nonoperating Revenues or Expenses( -) Investment earnings $3,124 $2,332 $4,388 $280,860 $201,091 $28,138 $519,933 $531,703 Special assessments: Service hookups & delinquencies 30,101 306 30,407 28,580 Other revenue 601 820 615 2,036 3,145 co F , Interest and fiscal agent fees (16,193) (54,000) ($14,298) (84,491) (84,838) -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- -- - - - - -- ---- - - - - -- ---------- Nonoperating Total s (12,468) (51,668) (14,298) 4,388 311,781 202,012 28,138 467,885 478,590 -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- ---- - - -- -- ---- - - - - -- -- - - - - -- ---- - - - - -- ---------- Income Before Operating Transfers 90,067 -------- 569 (428,038) 7,057 233,537 536,236 501,246 -- 940,674 - 220,251 -------- ---- - - - - -- ---- - - - - -- -- - - - - -- Operating Transfers In 84,810 84,810 334,727 Operating Transfers Out (100,000) (100,000) (65,000) -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- Net Income (Loss (9,933) 569 (343,228) 7,057 233,537 536,236 501,246 925,484 489,978 Depreciation on contributed assets that reduces contributed capital 343,228 343,228 335,605 Retained Earnings Jan.1 364,221 4,287 19 77,650 8,339,032 3,126,897 495,065 12,407,171 11,581,588 -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- -- - - - - -- ---- - - - - -- ---- - - - - -- Retained Earnings December 31 $354,288 $4,856 $19 $84,707 $8,572,569 $3,663,133 $996,311 $13,675,883 $12,407,171 City of Brooklyn Center E -3 Enterprise Funds (Continued next page) COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 1993 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center & Refuse Utility Sewer Drainage Totals Cash flows from operating activities: Fund Fund Fund Fund Fund Fund Fund 1993 1992 Operating income(loss) $102,535 $52,237 ($413,740) $2,669 ($78,244) $334,224 $473,108 $472,789 ($258,339) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 29,044 23,236 343,228 267,279 126,055 6,685 795,527 818,130 Changes in assets and liabilities: Accounts receivable (1,005) (150,926) (2,882) (11,362) (89,915) (22,087) (278,177) (58,323) Inventories (11,355) 2,155 (21,793) (4,836) (35,829) 31,124 Prepaid expenses 29,511 (36,260) 1,995 (4,754) (23,402) w Accounts payable 10,395 1,824 98,482 (8,085) 5,327 (7,615) (9,619) 90,709 (191,772) N Accrued salaries and leave 5,638 (822) 25,285 1,193 (38) (47) 31,209 (11,513) Other nonoperating income 601 30,921 921 32,443 31,725 -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- Net cash provided by (used for) operating activities 165,364 78,630 (155,724) (8,298) 210,278 365,627 448,040 1,103,917 337,630 -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- Cash flows from noncapital financing activities: Net borrowings(repayments) under revolving loan arrangement (19,257) 305,479 286,222 (65,693) Interest paid on revolving loan (16,193) (54,000) (14,298) (84,491) (82,898) Operating transfers in 84,810 84,810 334,727 Operating transfers out (100,000) (100,000) (65,000) Net cash provided by (used for) -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- noncapital financing activities (135,450) (54,000) 375,991 0 0 0 0 186,541 121,136 -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- E -3 (Continued from prior page) E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center & Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1993 1992 Cash flows from capital and related financing activities: Capital contributions 49,850 $49,850 $151,167 Acquisition and construction of capital assets ($6,069) ($7,634) (28,839) ($413,324) ($400,284) ($394,662) (1,250,812) (1,303,208) Principal paid on revenue bonds 0 (45,000) Interest paid on revenue bonds 0 (1,940) Proceeds from sale of equipment 0 258 Net cash provided by (used for) capital -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- 00 and related financing activities (6,069) (7,634) (28,839) 0 (413,324) (350,434) (394,662) (1,200,962) (1,198,723) w -- - - - - -- -- - - -- -- -- - - - - -- -- - - - - -- - - - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- Cash flows from investing activities: Interest on investments 3,124 2,332 $4,388 280,860 201,091 28,138 519,933 531,703 Change in restricted assets 0 121,755 Net cash provided by investing -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- activities 3,124 2,332 0 4,388 280,860 201,091 28,138 519,933 653,458 -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- Net increase (decrease) in cash and cash equivalents 26,969 19,328 191,428 (3,910) 77,814 216,284 81,516 609,429 (86,499) Cash and cash equivalents at beginning of the year 16,921 29,296 35,446 73,170 965,394 2,760,463 320,708 4,201,398 4,287,897 Cash and cash equivalents at end of the year $43,890 $48,624 $226,874 $69,260 $1,043,208 $2, 976, 747 $402,224 $4,810,827 $4,201,398 zx :s- :ssz- zz -s- --- -- - -z- sass-- --x- -- ass -xx --saxes sx -ssaz zsszzss sssesss szsszss E -4 City of Brooklyn Center Municipal Liquor Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1993 1993 1992 Sales Liquor $860,914 $835,492 Wine 265,333 286,301 Beer 1,318,596 _ 1,373,225 Soft drinks 57,352 55,463 Other merchandise 113,760 114,186 Total Sales 2 - 615,955 2,664,667 Less: Cost of Sales 1,976,173 2,011,103 Net Operating Revenues 639,782 653,564 Operating Expenses Personal services 356,468 343,673 Supplies 6,481 8,358 Other services 51,705 51,496 Insurance 31,534 30,548 Utilities 23,119 20,367 Rent 38,896 36,031 Depreciation 29,044 28,764 Total Operating Expenses - 537,247 - 519,237 Operating Income 102,535 134,327 Nonoperatinq Revenue or Expense( -) Investment earnings 3,124 1,200 Other revenue 601 1,115 Interest and fiscal agent fees (16,193) (17,757) Total Nonoperating (12,468) (15,442) Operating Transfers to General Fund 100,000 65,000 Net Income (Loss) (9,933) 53,885 Retained Earnings January 1 - 364,221 - 310,336 Retained Earnings December 31 $354,288 $364,221 84 - E_5 City of Brooklyn Center Golf Course Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1993 1993 1992 Operating Revenues Green fees $213,469 $216,491 Rentals 7,644 8,885 Leagues 8,219 6,217 Golf lessons 11,101 11,433 Concessions 17,348 18,599 Merchandise 19,918 20,545 Pop machine 1,825 2,302 Miscellaneous 509 451 -- - -- - -- -- . - - - - -- Total Operating Revenues 280,033 284,923 Less: Cost of Sales 29,352 28,102 Net Operating Revenues - 250,681 - 256,821 Operating Expenses Personal services 128,636 126,145 Supplies 16,061 13,883 Other services 17,801 10,219 Insurance 3,767 3,769 Utilities 8,943 9,770 Depreciation 23,236 25,435 Total Operating Expenses 198,444 189,221 Operating Income 52,237 67,600 - - - - -- -------- Nonoperating Revenue or Expense( -) Investment earnings 2,332 3,633 Interest and fiscal agent fees (54,000) (56,000) Total Nonoperating (51,668) (52,367) -- - - - - -- -- - -' - -- Net Income 569 15,233 Retained Earnings (Deficit) January 1 4,287 (10,946) Retained Earnings December 31 $4,856 $4,287 - 85 - City of Brooklyn Center E -6 Earle Brown Heritage Center Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1993 1993 1992 Operating Revenues Conventions $536,118 $423,015 Catering 946,306 73,689 Inn on the Farm 211,624 185,180 Office Rents 118,045 113,273 - Total Operating Revenues 1,812,093 795,157 -- - -' - -- -- - - - - -- Less: Cost of Sales 239,164 Net Operating Revenues 1,572,929 ----- 795,157 Operatinq Expenses Personal services 914,048 604,842 Supplies 128,897 60,576 Other services 423,723 307,791 Insurance 17,220 9,434 Utilities 128,677 120,715 Rent 30,876 17,385 Depreciation 343,228 335,605 - - - - -- -- - - - - -- Total Operating Expenses 1,986,669 1,456,348 -- - - - - -- -- - - - - -- Operating Loss (413,740) (661,191) Nonoperatinq Revenue or Expense( -) Interest and fiscal agent fees (14,298) (9,141) Total Nonoperatinq (14,298) (9,141) O eratin Transfers q a a sfers In 84,810 334,727 Net Loss (343,228) (335,605) Depreciation on contributed assets that reduces contributed capital 343,228 335,605 Retained Earnings January 1 19 19 - - - - -- - - - - - -- Retained Earnings December 31 $19 $19 86 - E -7 City of Brooklyn Center Recycling & Refuse Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31 1993 1993 1992 Operating Revenues Recycling service fees $106,196 $103,862 Recycling container sales 567 399 Total O eratin -q Revenues 106,763 104,261 -- - - - - -- - - - - - -- Operating Expenses Supplies 567 399 Other services - 103,527 - 103,534 Total Operating Expenses 104,094 103,933 - Operating Income (Loss 2,669 328 -- - - - - -- -- - - - - -- Nonoperating Revenues Investment earnings 4,388 4,792 Total Nonoperating 4,388 4,792 - - - - -- -- - - - - -- Net Income 7,057 5,120 Retained Earnings January 1 -- 77,650 - 72,530 Retained Earnings December 31 $84,707 $77,650 - 87 - i Brooklyn n City of B ook yn Ce to r E -8 Water Utility fund STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1993 1993 1992 Operating Revenues Service to customers $772,401 $843,697 Sale of meters 30,346 18,401 Penalties 45,387 34,759 - - - - -- - - - - -- Total Operating Revenues 848,134 896,857 -- - - - - -- -- - - - - -- Operating Expenses Personal services 317,283 348,313 Supplies 68,699 105,388 Utilities 128,901 134,905 Contractual services 144,216 173,799 Depreciation 267,279 233,447 Total Operating Expenses 926,378 995,852 Operating Loss - (78,244) - - (98,995) Nonoperating Revenues or Expenses( -) Investment earnings 280,860 286,501 Special assessments (for hookups & delinquencies) 30,101 28,283 Other 820 1,767 Interest and fiscal fees (1,940) Total Nonoperatin 311,781 314,611 Net Income 233,537 215,616 Retained Earnings January 1 8,339,032 8,123,416 Retained Earnings December 31 $8,572,569 $8,339,032 88 - City of Brooklyn Center E -9 Sanitary Sewer Fund STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1993 1993 1992 Operating Revenues Service to customers $2,114,429 $1,920,796 -- - - - - -- -- - - - - -- Operating Expenses Personal services 182,430 199,990 Supplies 13,999 12,995 Utilities 17,762 16,889 Contractual services 75,240 71,898 Metro Waste Control Commission Charges 1,364,719 1,411,582 Depreciation 126,055 194,879 Total Operating Expenses 1,780,205 1,908,233 - - - - -- -- - - - - -- Operating Income p g e 334,224 12,563 -- - - - - -- -- - - - - -- Nonoperating Revenues Investment earnings 201,091 221,547 Special assessments (for hookups & delinquencies) 306 297 Other 615 263 - - - - -- -- - - - - -- Total Nonoperating 202,012 222,107 Net Income 536,236 234,670 Retained Earnings January 1 3,126,897 2,892,227 Retained Earnings December 31 $3,663,133 $3,126,.897 - 89 - City of Brooklyn Center E -10 Storm Drainage Fund STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1993 1993 1992 Operating Revenues Service to customers $639,837 $494,456 -- - - - - -- -- - - - - -- Total Operating Revenues 639,837 494,456 - - - - -- -- - - - - -- Operating Expenses Personal services 100,339 101,576 Supplies 3,481 Contractual services 59,705 102,370 Depreciation 6,685 Total Operating Expenses 166,729 207,427 Operating Income 473,108 287,029 Nonoperating Revenues Investment earnings 28,138 14,030 - - - - -- -- - - - - -- Total Nonoperating 28,138 14,030 Net Income 501,246 301,059 Retained Earnings a s Januar 1 495 065 194 9 Y > 006 --- - - - - -- --- - - - - -- Retained Earnings December 31 $996,311 $495,065 90 - 1 City of Brooklyn Center, Minnesota INTERNAL SERVICE FUNDS Internal Service Funds are used to account, on a cost reimbursement basis, for the financing of goods or services provided by one department to other departments of the City. Revenues and expenses in these funds are recognized on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become measurable. Expenditures are recognized in the accounting period in which they are incurred. Public Employees Retirement Fund This fund provides certain health care insurance benefits for City employees who retire before age 65. Substantially all of the City's full time employees may be eligible for those benefits from the time they qualify for an unreduced PERA pension until they reach age 65 or become eligible for medicare. Currently investment earnings.are sufficient to provide benefits. In the event that future costs would exceed earnings, other funds would be charged for the costs associated with their employees. Central Garage Fund This fund was established on December 31, 1993 to account for the acquisition and maintenance of all City vehicles and rolling stock equipment. Vehicle and equipment maintenance, repair, and replacement will be provided from rental rates which the Central Garage charges City operating departments for use of the equipment. - 91 - City of Brooklyn Center FF = 1 Internal Service Funds COMBINING BALANCE SHEET December 31, 1993 Employee Central Retirement Garage Totals ASSETS Fund Fund 1993 1992 Current Assets Cash and cash equivalents $1,062,926 $1,635,437 $2,698,363 $1,017,036 ---- - - - - -- ---- - - - - -- --- - - - - -- --- - - - - -- Total Current Assets -- 1,062,926 -- 1,635,437 - 2,698,363 - 1,017,036 Fixed Assets Equipment 3,136,597 3,136,597 Less: Allowance for depreciation 1,635,437 1,635,437 - Total Fixed Assets 1,501,160 1,501,160 ---- - - - - -- --- - - - - -- TOTAL ASSETS $1,062,926 $3,136,597 $4,199,523 $1,017,036 -- - - - - -- -- - - - - -- - LIABILITIES AND FUND EQUITY Current Liabilities Accrued health liability $216,544 $216,544 $191,090 --- - - - - -- --- - - - - -- --- - - - - -- Total Current Liabilitie 16 544 191 090 s 216,544 , - - - - -- --- - - - - -- --- - - - - -- Fund Eguity Contributions: Transfers from: General Fund 750,000 750,000 Refunding Bonds of 1987 885,437 885,437 General Fixed Asset Account Group - 1,501,160 - 1,501,160 Total Contributions 3,136,597 3,136,597 Retained Earnings: Unreserved 846,382 846,382 825,946 Total Fund Equity 846,382 3,136,597 3,982,979 825,946 --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- TOTAL LIABILITIES AND FUND EQUITY $1,062,926 $3,136,597 $4,199,523 $1,017,036 - 92 - City of Brooklyn Center F -2 Internal Service Funds COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1993 Employee Retirement Fund 1993 1992 Operating Expenses Personal services $39,450 $2,420 Other services 2,000 -- Total Operating Expenses 41,450 2,420 Operating Loss (41,450) (2,420) - - - - - -- - - - - - -- Nonoperating Revenues Investment earnings 61,886 64,047 - - - - - -- - - - - - -- Total Nonoperating 61,886 64,047 Net Income 20,436 61,627 Retained Earnings January 1 825,946 764,319 Retained Earnings December 31 $846,382 $825,946 93 - City of Brooklyn Center F Internal Service Funds COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 1993 Employee Central Retirement Garage Totals Fund Fund 1993 1992 Cash flows from operating activities: Operating loss ($41,450) ($41,450) ($2,420) Adjustments to reconcile operating loss to net cash used for operating activities: Changes in assets and liabilities: Accured health liability 25,454 25,454 (5,779) ------ -- - -•- --- - - - - -- --- - - - - -- Net cash used for operating activities (1 - r (15,996) (8,199) Cash flows from capital and related financin g activities: Capital contributions $1,635,437 1,635,437 --- - - - - -- --- - - - - -- Net cash rovided b ital and related p Y ca p financing activities: 1,635,437 1,635,437 --- - - - - -- --- - - - - -- Cash flows from investing activities: Interest on investments 61,886 61,886 64,047 i - - - - -- --- - - - - -- --- - - - - -- Net Cash provided by investing gctc viVes 61,886 61,886 64,047 --- - - - - -- --- - - - - -- --- - - - - -- Net increase in cash and cash equivalents 45,890 1,635,437 1,681,327 55,848 Cash and cash a uiv I .n e ' ,o o, " g a e is a t b.��nsn of the year _ 1,017,036 0 1,017,036 961,188 I� --- - - - - -- --- -- - - -- --- - - - - -- --- - - - - -- Cash and cash equivalc,-4 a end t the year $1,062,926 $1,635,437 $2,698,363 $1,017,036 94 - , t City of Brooklyn Center, Minnesota AGENCY FUNDS established to account for assets held b Agency Funds are ish Y the City as an agent for other City Funds, governments, or individuals. The Agency Funds are maintained on the modified accrual basis of accounting. ' The City's Agency fund included in this section is: Employee Deferred Compensation Fund This fund was established to 1 account for funds on deposit with the trustees who administer the City sponsored deferred compensation plan. 1 - 95 - City of Brooklyn Center G Employee Deferred Compensation Fund STATEMENT OF CHANGES IN ASSETS AND LIABILITIES , For the Year Ended December 31, 1993 December 31, December 31, 1992 1993 Balance Additions Deduction Balance ASSETS Investments for deferred compensation plans, held by trustees (1) $2,241,152 $381,653 $90,070 $2,532,735 --- - - - - -- -- - - - - -- -- - - - - -- --- - - - - -- TOTAL ASSETS $2,241,152 $381,653 $90,070 $2,532,735 LIABILITIES Due to employees for , deferred compensation $2,241,152 $381,653 $90,070 $2,532,735 TOTAL LIABILITIES $2,241,152 $381,653 $90,070 $2,532,735 (1) Investments are reported at market value. 3 - 96 - City of Brooklyn Center, Minnesota GENERAL FIXED ASSET ACCOUNT GROUP The General Fixed Asset Account Group was established to account for the City's fixed assets which are not accounted for in an enterprise fund, and which are tangible in nature, have a life longer than the current fiscal year, and have a significant value. Depreciation is not recorded on those assets. r - 97 - City of Brooklyn Center S -6 SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE For the Year Ended December 31, 1993 January 1, December 31, 1993 1993 Balance Acquisitions Disposals* Balance Investments in General Fixed Assets Land $2,368,459 $1,342 $2,369,801 Buildings and improvements 4,856,703 87,645 4,944,348 Park improvements 2,869,112 94,152 $9,643 2,953,621 Furniture 937,602 75,050 17,026 995,626 Departmental equipment 4,119,975 199,388 3,322,419 996,944 Total Investments in General F 4 8 122 0, 340 'x 4 7 77 3 3 9 08 6 Fixed Assets 15 151 851 $ 5 5 $ $ Sources of Investments General Indebtedness $1,277,653 $120,000 $282,406 $1,115,247 General Fund revenues 6,373,011 214,294 1,408,658 5,178,647 u Li r r income 47 969 169 051 Liquor store co a 217,020 , Contributions 233,344 51,577 181,767 Capital projects funds 5,997,247 123,283 1,325,601 4,794,929 Federal grants 1,053,576 232,877 820,699 ---- - - - - -- --- - - - - -- -- - - - - -- ---- - - - - -- Total Sources of Investments $15,151,851 $457,577 $3,349,088 $12,260,340 * Includes $3,136,597 transfer of fixed assets to the Central Garage Internal , Service Fund. - 98 - S -7 City of Brooklyn Center SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1993 Other Function Land Buildings Improvements Equipment Total General government $404,910 $404,910 Government buildings $303,770 $4,308,514 $286,845 40,208 4,939,337 Public safety 50,450 1,074,918 1,125,368 Public works 9,793 137,672 147,465 Recreation 294,481 294,481 Parks 2,066,031 595,591 2,666,776 40,381 5,368,779 - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- Totals $2,369,801 $4,964,348 $2,953,621 $1,992,570 $12,280,340 S -8 City of Brooklyn Center SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For the Year Ended December 31, 1993 General Fixed General Fixed Assets Assets January 1, December 31, Function 1993 Additions Deductions 1993 0 0 General government $344 $94,309 $22 $416,284 Government buildings 4,642,559 267,866 140 4,910,285 Public safety 1,937,102 473,718 54,376 2,356,444 Public works 1,537,239 99,084 115,010 1,521,313 Recreation 275,794 10,799 268 286,325 Parks 5,505,714 166,411 10,925 5,661,200 --- - - - - -- -- - - - - -- -- - - - - -- --- - - - - -- Totals $14 $1 $203,510 $15,151,851 - - - -- --- - - - - -- - - - - -- - - - - -- --- - - - - -- ----- --- - - - - -- - - - - -- - - - - -- --- - - - - -- r rr rr rr err r� rs rr +r �r r► � r r r � r �r r City of Brooklyn Center, Minnesota GENERAL LONG -TERM DEBT ACCOUNT GROUP The General Long Term Debt Account Group was established to account for the City's unmatured general obligation long term debt that is secured by the full faith and credit of the City and is not the primary obligation of an Enterprise Fund of the City. t - 101 - H City of Brooklyn Center COMPARATIVE STATEMENT OF GENERAL LONG -TERM DEBT December 31, 1993 and 1992 December 31, 1993 1992 Amounts Available and to be Provided Amounts available in Debt Service Funds $5,846,719 $7,279,029 Amounts to be provided: From future tax increments 9,048,281 9,070,971 From future gas tax allocations 2,750,000 2,885,000 ---- - - - - -- ---- - - - - -- Total Available and to be Provided $17,645,000 $19,235,000 General Long -Term Debt Payable General Obligation Bonds $310,000 Certificates of indebtedness 545,000 G.O. State Aid Street Bonds $2,750,000 2,885,000 Special Assessment Bonds 275,000 385,000 Tax Increment Bonds 14,620,000 15,110,000 Total General Long-Term Debt $17,645,000 $19,235,000 3 - 102 - City of Brooklyn Center I SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY December 31, 1993 G.O. State G.O. Special G.O. Tax Total Debt Aid Street Bonds Assessment Bonds Increment Bonds Service Requirements Year Principal Interest Principal Interest Principal Interest Principal Interest 1994 145,000 164,071 100,000 11,912 535,000 904,570 780,000 1,080,553 1995 150,000 156,325 85,000 7,131 590,000 871,130 825,000 1,034,586 1996 160,000 147,872 50,000 3,550 670,000 831,995 880,000 983,417 1997 170,000 138,588 40,000 1,100 1,140,000 777,523 1,350,000 917,211 1998 180,000 128,478 1,270,000 705,825 1,450,000 834,303 0 1999 190,000 117,560 1,450,000 622,383 1,640,000 739,943 i 2000 205,000 105,706 1,610,000 526,271 1,815,000 631,977 2001 220,000 92,740 1,810,000 416,806 2,030,000 509,546 2002 230,000 78,788 2,005,000 292,282 2,235,000 371,070 2003 245,000 63,821 2,115,000 155,820 2,360,000 219,641 2004 265,000 47,496 1,425,000 42,750 .1,690,000 90,246 2005 285,000 29,616 285,000 29,616 2006 305,000 10,141 305,000 10,141 --- - - - - -- ---- - ---- -- - - - - -- - - - - - -- ---- - - - - -- ---- - - - - -- ---- - - - - -- - - - - -- - $2,750,000 $1,281,202 $275,000 $23,693 $14,620,000 $6,147,355 $17,645,000 $7,452,250 azssass ace sass sscacs asssa sssssssa aaaaasaa ssasssss sas :sass City of Brooklyn Center, Minnesota STATISTICAL SECTION The statistical section presents comparative statistical data for the past ten years, and other pertinent information involving taxes, revenues, expenditures, bonded debt, property valuations, insurance coverage and miscellaneous statistics. This information is intended to be useful and of interest to investors in City bonds, financial institutions, and others interested in municipal government financial statistics. - 104 - City of Brooklyn Center TABLE 1 GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) Last Ten Fiscal Years Community Fiscal General Public Public Health Parks and Economic Non- Total Year Government Safety Works Services Recreation Development Departmental Expenditures 1984 $1,112,173 $1,985,108 $1,383,039 $30,437 $1,319,298 $337,624 $6,167,679 1985 1,283,050 2,143,843 1,560,842 34,326 1,389,075 416,937 6,828,073 1986 1,487,876 2,288,062 1,549,584 45,294 1,405,020 378,688 7,154,524 0 1987 1,532,185 2,604,773 1,552,532 48,185 1,597,901 313,860 7,649,436 � I 1988 1,768,607 2,716,205 1,768,918 69,117 1,706,516 $162,271 310,475 8,502,109 1989 1,793,495 3,103,222 1,754,800 81,043 1,814,391 168,305 347,315 9,062,571 1990 1,570,143 3,474,108 1,866,847 114,633 1,842,294 169,942 396,550 9,434,517 1991 1,591,108 3,950,862 1,827,052 104,706 1,870,385 177,179 414,149 9,935,441 1992 1,797,895 3,938,920 1,594,190 114,579 1,783,811 187,606 273,273 9,690,274 1 993 $1,560,674 $3,870,563 $1,756,187 $41,325 $1,999,270 $178,703 $300,803 $9,707,525 (1) Funds included in this table are the General Fund. m am 1� City of Brooklyn Center TABLE 2 GENERAL GOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES BY SOURCE (1) Last Ten Fiscal Years General Other Fiscal Property Licenses Intergovern- Charges for Fines and Financing Total Year Taxes & Permits mental Services Forfeitures Misc. Sources Revenue 1984 $2,407,352 $296,667 $2,524,494 $919,796 $158,823 $337,201 $330,452 $6,974,785 1985 2,444,153 387,806 2,618,957 979,543 187,045 348,316 311,926 7,277,746 1986 2,566,220 411,406 2,866,442 965,527 224,753 318,453 341,403 7,694,204 1987 2,541,016 345,019 3,060,252 1,1 4,203 269,903 310,613 166,888 7,807,894 o I rn ' 1988 3,318,656 329,783 3,078,491 1,215,635 243,952 363,918 337,871 8,888,306 1989 3,325,101 365,247 3,628,255 1,124,167 278,812 425,356 176,505 9,323,443 1990 3,854,798 297,495 3,201,888 919,537 215,804 443,623 174,925 9,108,070 1991 4,274,089 311,751 2,926,570 881,213 202,090 360,800 877,477 9,833,990 1992 4,291,322 332,186 3,133,495 794,876 148,701 301,771 620,000 9,622,351 1993 $5,006,710 $300,480 $3,167,214 $838,883 $140,104 $279,211 $295,000 $10,027,602 (1) Funds included in this table are the General Fund. City of Brooklyn Center TABLE 3 TAX LEVIES AND TAX COLLECTIONS-(1) Last Ten Fiscal Years Collections Percentage Collections of Current of Levy of Prior Total Delinquent Year's Taxes Collected Year's Taxes Collections Delinquent Taxes as Year During Fiscal During Fiscal During Fiscal Total as a % of Taxes a % of Collected Tax LeyyQ Period Period Period Collections Tax Lev v Receivable Tax Levy 1984 $2,836,968 $2,721,413 95.93% $111,556 $2,833,009 98.86% $290,746 10.25% 1985 2,931,266 2,657,094 90.65% 178,709 2,835,803 96.74% 386,209 13.18% 1986 2,886,824 2,849,382 98.70% 32,739 2,882,121 99.84% 390,912 13.54% ° 1987 3,396,789 3,242,573 95.46% 68,651 3,311,224 97.48% 73,052 2.15% 1988 3,576,812 3,488,174 97.52% 13,090 3,501,264 97.89% 105,521 2.95% 1989 3,505,850 3,418,111 97.50% 55,502 3,473,613 99.08% 84,948 2.42% 1990 4,092,978 3,857,576 94.25 % 12,241 3,869,817 94.55% 221,097 5.40% 1991 4,670,606 4,478,115 95.88% 79,443 4,557,558 97.58% 249,882 5.35% 1952 5,072,385 4,818,439 94.99% 6,898 4,825,337 95.13% 351,199 6.92% 1993 $5,491,707 $5,204,161 94.76% ($121,158) $5,083,003 92.56% $189,400 3.45% (1) Funds included in this table are the General Fund, Certificates of Indebtedness, Park Bonds, H.R.A., and E.D.A.. (2) Includes property taxes only; lodging tax and tax increments are excluded. �r arl r r rr r■ r r r r� r ar rr r� rs r�.r r � ■r MM man m m m w�� an r M M M M m City of Brooklyn Center TABLE 4 ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY (1) Last Ten Fiscal Years 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 (4 Population 30,820 30,630 30,267 29,759 29,420 28,578 28,810 28,887 28,558 28,558 Real Property Assessed value (2): Tax Tax (3) Tax Tax Tax City: Capacity Capacity Capacity Capacity Capacity Residential $78,112,774 $81, 072,128 $90,912,548 $91,929,246 $90,162,927 $11,834,805 $10, 133,274 $9,730,898 $9,193,012 $9,077,238 Non - residential 124,305,853 126,444,994 125,109,658 139,433,999 154,031,355 19,707,624 16,185,832 16,305,868 16,013,701 14,654,123 Area -wide allocation (3,366,456) (2,134,213) (2,097,533) (1,345,864) (8,148,681) (977,841) (1,365,235) (1,384,936) (1,550,097) (1,533,767) 199,052,171 205,382,909 213,924,673 230,017,381 236,045,601 30,564,588 24,953,871 24,651,830 23,656,616 22,197,594 Less Tax Increment District 78,000 742,474 4,057,611 5,437,588 9,784,473 2,097,505 1,540,518 1,315,724 1,374,157 1,184,328 Total assessed value 198,974,171 204,640,435 209,867,062 224,579,793 226,261,128 28,467,083 23,413,353 23,336,106 22,282,459 21,013,266 Estimated Market Value 775,162,400 788,107,800 813,377,800 854,846,550 910,336,300 950,463,900 1,000,269,000 1,016,754,000 1,015,968,800 978,404,100 i Personal Property ~ Assessed value 4,148,726 4,276,221 4,291,916 4,296,001 4,510,313 190, 299 530,526 539,121 543,237 549,751 0 0 i Estimated market value 9,648,200 9,944,700 9,981,200 9,990,700 10,489,100 3,627,500 10,610,520 10,564,700 11,349,900 11,951,100 Total Taxable Property Assessed value $203, 122,897 $208,916,656 $214,158,978 $228,875,794 $230,771,441 $28,657,382 $23,943,879 $23,875,227 $22,825,696 $21,563,017 Estimated market value $784, 810, 600 $ 798, 052, 500 $ 823, 359, 000 $ 864, 837,250 $920,825,400 $954,091,400 $1,010,879,520 $1,027,318,700 $1,012,179,300 $990,355,200 axaxxxxxx xxxx =xxxx xxxxa =xxx xxxxxxxxx xxxxaxxxx x= xxxxxxx xx= xxxxxxx xxxxxxxxxx axxxxxxxxx ---- - - - - -- Assessed Value as a percent of Estimated Market Value 25.88% 26.18% 26.01% 26.46% 25.06% 3.00% 2.37% 2.32% 2.26% 2.18% Per Capita Valuations Assessed Value $6,591 $6,821 $7,076 $7,691 $7,844 $1,003 $831 $827 $799 $755 Estimated Market Value $25,464 $26,055 $27,203 $29,061 $31, 299 $33, 386 $35,088 $35,563 $35,443 $34,679 (1) Source: City of Brooklyn Center Assessing Department (2) The Minnesota Legislature changed the property tax system for taxes payable in 1989. The tax base of property was changed from assessed values to tax capacity values. (3) The reduction in residential values is due to a change in the state mandated formula from gross tax capacity to net tax capacity. (4) The 1993 population estimate was not available. The 1992 population estimate was used. City of Brooklyn Center TABLE 5 DIRECT AND OVERLAPPING TAX RATES AND TAX LEVIES (1) Last Ten Fiscal Years TAX RATES IN MILLS (2) Hennepin School Districts County & Total City, School, and County _ Year Vo -Tech No. 286 No. 279 No. 281 No. 11 Special No. 286 No. 279 No. 281 No. 11 Collectible �7LJQ School Earl Brown Osseo Robbinsdale Anoka Districts Earl Brown Osseo Robbinsdale Anoka 1984 1 7.096 1,446 49.965 54.909 58.326 55.225 35.007 103.514 108.458 111.875 107.328 1985 16.506 1.490 49.332 51.199 56.100 52.830 34.443 101.771 103.638 108.539 103.779 1986 17.183 1.535 52.545 54.345 59.450 55.740 35.566 106.829 108.629 113.734 108.489 1987 8.167 1.421 49.640 55.783 56.932 54.926 35.315 104.543 110.686 111.835 108.408 1988 19.237 1.493 59.372 (1.859 58.433 62.181 38.405 118.507 120.994 117.568 119.823 TAX RATES IN TAX CAPACI1`Y RATES(2) 1989 14.260 1.223 43,440 54.465 49.189 51.384 32.898 91.821 102.846 97.570 98.542 1990 17.479 1.103 42.099 7.847 54.516 47.893 33.547 94.228 109.976 106.645 98.919 1991 19.208 1.046 46.207 ;.3.343 55.540 51.779 37.479 103.940 116.376 113.273 108.466 0 1992 20.922 0.513 54.696 t,�.766 58.723 56.525 40.888 117.019 128.089 121.046 118.335 o 1993 23.969 1.095 67.008 64.948 61.807 63.717 42.457 134.529 132.469 129.328 130.143 TAX LEVIES IN DOLLARS School Districts Hennepin County & Total City, Year Vo -Tech No. 286 No. 279 No. 281 No. 11 Special Schools, Collectible City 3 School Earl Brawn Osseo Robbinsdale Anoka Districts and County 1984 $2,836,968 $287,933 $3,328,173 $3,090,749 $3,178,504 $1,279,696 $7,085,080 $21,087,103 1985 2,931,266 310,394 3,442,445 3,014,744 3,187,821 1,286,533 7,207,150 21,380,353 1986 2,886,824 327,794 3,776,253 3,194,101 3,476,104 1,329,107 7,593,315 22,583,498 1987 3,396,789 293,194 3,900,388 3,409,323 3,726,934 1,327,348 8,088,560 24,142,536 1988 3,576,812 307,506 4,602,806 3,782,157 3,875,906 1,537,601 8,862,771 26,545,559 1989 3,505,850 293,205 4,059,518 3,770,603 3,791,546 2,179,665 8,776,213 26,376,600 1990 4,092,978 244,258 3,718,102 3,171,054 4,028,724 1,099,641 8,052,590 24,407,347 1991 4,670,606 234,927 4,169,240 3,266,615 4,365,729 1,207,395 8,992,605 26,907,117 1992 5,072,385 123,029 4,596,776 3,516,409 4,444,416 1,293,144 8,344,678 27,390,837 1993 $5,491,707 $218,460 $5,173,925 $3,289,896 $4,842,750 $1,354,534 $8,877,060 $29,248,332 (1) Sources: (1984 -1991) Hennepin County Department of Property Tax & Public Records. (1992 -1993) City of Brooklyn Center Assessing Department (2) The tax base of property was changed from assessed values to tax capacity values by the Minnesota Legislature in 1989. (3) Includes tax levy for the Housing and Redevelopment Authority of Brooklyn Center. City of Brooklyn Center TABLE 6 SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Last Ten Fiscal Years Percent Current Collections Total Special Percent Collection Collections ~r Assessment of of Prior Total to Current 'z B LI - t(j s Amount Billings Years Collections Le v 1984 V! ' 1 :x,013 T 18,241 94.49% $79,617 $847,858 104.29% 1985 715,1858,756 97.70% 84,781 783,537 109.56% 1986 f 131 , 296 631,165 99.98% 11,953 643,118 101.87% i 1987 572,851 552,168 96.39Ovo 3,139 555,307 96.9410 1988 56 526,594 94.71% 2,723 529,317 95.20% I 1989 562,484 545,242 96.93% 59,944 605,186 107.59% 1990 504,682 476,874 94.49% 14,327 491,201 97.33% 1991 612,744 595,362 97.16% 23,135 618,497 100.94% 1992 558,265 533,439 95.55% 13,801 547,240 98.03% 1993 $488,163 $469,814 96.24% $21,188 $491,002 100.58% City of Brooklyn Center TABLE 7 RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET DEBT PER CAPITA Last Ten Fiscal Years Less: Ratio of Net Net Gross Amounts Net Bonded Debt Bonded Fiscal Estimated Assessed Bonded in Debt Bonded to Assessed Debt Per Year Population Value Debt 1 Service Fund Debt Values Capita 1984 30,820 $203,122,897 $2,545,000 $628,786 $1,916,214 0.94% $62.17 1985 30,630 208,916,656 2,290,000 846,014 1,443,986 0.69% 47.14 1986 30,267 214,158,978 2,020,000 945,736 1,074,264 0.50% 35.49 i 1987 29,759 228, 875, 794 1,740,000 683,294 1,056,706 0.46% 35.51 1988 29,420 230,771,441 1,440,000 751,408 688,592 0.30% 23.41 Less: Ratio of Net Net Tax Gross Amounts Net Bonded Debt to Bonded Fiscal Estimated Capacity Bonded in Debt Bonded Tax Capacity Debt Per Year Population Value Debt 1 Service Fund Debt Value Capita 1989 28,578 28,657,382 1,130,000 274,843 855,157 2.98% 29.92 1990 28,810 23,943,879 950,000 448,846 501,154 2.09% 17.40 1991 28,887 23,875,227 610,000 486,205 123,795 0.52% 4.29 1992 28,558 22,825,696 310,000 504,146 (194,146) -0.85% (6.79) 1993 (2) 28,558 $21,563,017 $0 $0 $0 0.00% $0.00 (1) Includes only bonded debt supported by property taxes. (2) 1992 population estimate. City of Brooklyn Center Table 8 COMPUTATION OF LEGAL DEBT MARGIN December 31, 1993 Estimated market value for taxes payable in 1993 $990,355,200 Debt limit, 2% of market value 19,807,104 Total bonded debt 17,645,000 Deductions (See Note 5): A. Bonds: 000 1. Special Assessment Bonds 275,000 2. State Aid Street Bonds 2,750,000 3. Tax Increment Bonds 14,620,000 Total Deductions 17,645,000 Total. Debt Applicable to Debt Limit 0 Legal Debt Margin, December 31, 1993 $19,807,104 - 112 - City of Brooklyn Center TABLE 9 COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 1993 City's Share Governmental Unit Gross Debt Sinking Funds Net Debt Percent Amount Direct Debt: City of Brooklyn Center (1) $0 $0 $0 100.0% $0 Overlapping Debt: School Districts: No. 281 Robbinsdale 295,000 265,659 29,341 10.7% 3,139 No.11 Anoka 98,503,635 45,851,499 52,652,136 5.9% 3,106,476 No. 279 Osseo 151,975,000 51,476,161 100,498,839 7.3% 7,336,415 No. 286 Earl Brown 5,100,000 266,556 4,833,444 100.0% 4,833,444 Metropolitan Transit 3,000,000 1,646,000 1,354,000 1.2% 16,248 Metropolitan Council (2) 100,270,000 29,701,203 70,568,797 1.1% 776,257 Hennepin County 85,335,000 6,866,787 78,468,213 2.1% 1,647,832 Hennepin County Park Reserve District 12,650,000 774,483 11,875,517 3.1% 368,141 ---- - - - - -- --- - - - - -- ---- - - - - -- --- - - - - -- w Total Overlapping Debt 457,128,635 136,848,348 320,280,287 18,087,952 ---- - - - - -- --- - - - - -- ---- - - - - -- --- - - - - -- Total Direct and Overlapping Debt $457,128,635 $136,848,348 $320,280,287 $18,087,952 (1) Includes only general obligation debt which is being repaid through property taxes. (2) Excludes $293,455,000 less $31,327,349 in sinking funds of Metropolitan Council issued G.O. Sewer Bonds. These bonds are supported from sewer charges to governments (including Brooklyn Center) in the metropolitan sewer system. Direct Overlapping Comparative Net Debt Ratios Chargeable to City Total Debt Debt Debt to tax capacity value $21,563,017 83.88% 0.00% 83.88% Debt to market value $990,355,200 1.83% 0.00% 1.83% Per capita debt, population 28,558 $633.38 $0.00 $633.38 City of Brooklyn Center TABLE 10 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years Debt Service Total (1) Total (2) as a Percent Debt General of General Year Principal Interest Service Expenditures Expenditures 1984 $255,000 $250,132 $505,132 $6,167,679 8.19% 1985 255,000 251,095 506,095 6,828,073 7.41% 1986 275,000 507,558 782,558 7,154,524 10.94% 1987 (3) 2,475,000 930 252 3,405,252 7 649 436 44.52% 1988 .640, 000 682,561 1,322,561 8,502,109 15.56% 1989 635,000 626,068 1,261,068 9,062,571 13.92% 1990 530,000 585,992 1,115,992 9,434,517 11.83% 1991 940,000 746,401 1,686,401 9,935,441 16.97% 1992 (4) 1,880,000 1 195 204 3,075,204 9 690 274 31.73% 1993 $1,710,000 $1,186,585 $2,896,585 $9,707,525 29.84/0 (1) For years 1984 through 1986, General Obligation Bonds and G.O. Tax Increment Bonds are included. From 1987 onward, Improvement Bonds, formerly Special Assessment Bonds, are also included. From 1991 onward, Certificates of Indebtedness are included. (2) The fund included in the expenditures column is the General Fund. (3) Amounts for 1987 are higher because of the issuance of Refunding Bonds of 1987 and the defeasance of Improvement Bonds of 1982. (4) Amounts for 1992 are higher because Tax Increment Bonds of 1983 were called for payment prior to maturity. - 114 - City of Brooklyn Center TABLE 11 SCHEDULE OF WATER REVENUE BOND COVERAGE Last Ten Fiscal Years Ratio of Net Non- Net Revenue Operating Operating Gross Revenue to Debt Year Revenue Revenue Revenue Expenses(1) Available Principal Interest Total Service 1984 $482,558 $496,357 $978,915 $459,771 $519,144 $40,000 $15,600 $55,600 9.337 :1 1985 546,817 512,538 1,059,355 478,958 580,397 45,000 14,040 59,040 9.831 :1 1986 473,279 488,834 962,113 506,466 455,647 45,000 12,399 57,399 7.938 :1 1987 556,222 412,653 968,875 489,374 479,501 45,000 10,786 55,786 8.595 :1 Lyi 1988 694,654 375,061 1,069,715 695,395 374,320 45,000 8,889 53,889 6.946 :1 1989 687,982 425,030 1,113,012 665,629 447,383 45,000 7,180 52,180 8.574 :1 1990 696,147 440,644 1,136,7 ="d1 604,497 532,294 45,000 5,425 50,425 10.556 :1 1991 703,422 390,421 1,093,843 697,108 396,735 45,000 3,695 48,695 8.147 :1 1992 896,857 316,551 1,213,408 762,405 451,003 45,000 1,940 46,940 9.608 :1 1993 $848,134 $311,781 $1,159,915 $659,099 $500,816 $0 $0 $0 N/A (1) Excludes depreciation and interest on bonds. City of Brooklyn Center TABLE 12 PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Last Ten Fiscal Years Commercial Residential Construction (1) Construction (1) Property Value (2) Bank Year Value Units Value Commercial Residential Non- Taxable Deposits(3) 1984 $6,037,900 77 $8,954,300 $268,460,800 $506,701,600 $52,828,091 N/A 1985 29,553,108 14 827,700 201,274,889 586,929,400 62,287,088 N/A 1986 14,689,661 157 9,737,806 199,882,500 613,694,000 64,906,838 N/A 1987 7,220,527 9 885,202 246,784,100 608,890,900 92,384,868 N/A rn 1988 5,084,601 66 3,073,500 286,096,300 634,230,700 89,745,168 N/A 1989 7,288,205 4 278,138 321,452,800 678,898,700 83,719,768 $219,077,986 1990 5,750,567 1 65,249 333,967,220 676,912,300 83,719,768 202,261,488 1991 4,719,147 7 450,745 339,358,500 677,299,800 87,479,168 201,944,156 1992 5,547,668 14 948,810 344,860,700 667,318,600 107,747,100 199,800,971 1993 $7,598,108 7 $505,000 $322,295,300 $668,059,900 $108,955,700 $200,539,494 (1) Construction values were supplied by the City of Brooklyn Center Planning Department. (2) Estimated market values were supplied by the City of Brooklyn Center Assessing Department. (3) Bank deposits were supplied by the banks. City of Brooklyn Center TABLE 13 PRINCIPAL TAXPAYERS December 31, 1993 Percentage 1993 of Total Market Market Taxpayers Type of Business Valuation (1) Value S C Ltd Partners Brookdale Shopping Center $65,468,800 6.61% Ryan Construction Office Buildings 15,165,600 1.53 % Dayton- Hudson Corp Department Stores 14,667,900 1.48% Commercial Partners Brookdale Square Shopping Center 11,723,000 1.18% Norman Chazin Apartment Buildings 10,305,000 1.04% Sears Roebeck and Company Department Store 8,000,000 0.81% Shingle Creek Plaza II Land, Warehouse and Office Buildings 7,750,300 0.78% Carson Pirie Scott Department Store 7,290,300 0.74% Lutheran Brotherhood Office/Warehouse 6,695,000 0.68% NW R a uet Clubs H o q ealth Club/Fitness 6,369,200 0.64 /o Total Market Value $153,435,100 15.49% TOTAL CITY MARKET VALUE $990,355,200 (1) Market values were supplied by the City of Brooklyn Center Assessing Department. 117 - 1 City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE Effective January 1, 1994 (Continued next page) Policy Period Type of Coverage and Details From To Liability Limits I. Statutory Liability to Employees a. Workers' Compensation 01 -01 -94 01 -01 -95 Statutory (participant in the League of Minnesota Cities Insurance Trust Self- Insured Workers' Compensation Program) II. Liability to the Public a. Comprehensive general liability include the following additional coverages: (a) All employees as additional insureds (b) Personal injury coverage to include false arrest, libel, slander, wrongful entry or eviction or invasion of right of privacy. (c) Broad contractual liability (d) Products liability (e) Public Officials' liability (1) Bodily injury 01 -01 -94 01 -01 -95 $600,000 combined single limit (2) Property damage 01 -01 -94 01 -01 -95 $600,000 combined single limit (3) Personal injury 01 -01 -94 01 -01 -95 $600,000 combined single limit b. Automobile liability, comprehensive 01 -01 -94 01 -01 -95 (1) Bodily injury $600,000 occurrence (2) Property damage $600,000 occurrence (3) Uninsured motorist $600,000 occurrence C. Liquor stores' dram shop 01 -01 -94 01 -01 -95 $1,000,000 each common cause d. Golf Course and Central Park 04 -01 -94 10 -31 -95 $1,000,000 each common liquor liability cause e. Personal accident, Council & 03 -01 -94 03 -01 -95 $100,000 accidental death Commissions $400 /week short term disability f. Personal accident, Volunteers 01 -01 -94 12 -31 -95 $100,000 accidental death $400 /week short term disability $1,000 Medical - 118 - City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE (Continued from prior page) Effective January 1, 1994 Buildings and Policy Period Structures Content: (Replacement (Replacement Type of Coverage and Details From To Cost ) Cost 111. Insurance on City Property 01 -01 -94 01 -01 -95 a. Public and institutional property, all risk, blanket $29,317,000; $1,000 deductible replacement value on buildings. (1) Civic Center $6,016,000 $1,047,000 (2) East Fire Station $594,800 $149,000 (3) Municipal Service Garage $1,360,100 $536,000 (4) Elevated Water Towers - 3 locations $3,531,700 $0 (5) Park Shelter Buildings - 17 locations $1,479,900 $55,000 (6) Pump Houses - 10 locations $914,900 $110,000 (7) Lift Stations - 10 locations $1,063,400 $71,000 (8) Meter Station $16,400 $0 (9) Storage Building $407,300 $0 (10) Outdoor lighting systems - 7 locations $316,000 $0 (11) Liquor Store and Fire Station $591,200 $307,800 (12) Humboldt Liquor Store $233,100 $160,000 (13) Leased Liquor Store $48,400 $160,000 (15) Pedestrian Bridge - 2 locations $1,090,900 $0 (16) Picnic Shelter $55,400 $0 (17) Earle Brown Heritage Center $7,179,600 $1,421,000 (18) Centerbrook Golf Course Club House $307,200 $22,000 (19) Centerbrook Golf Course - Garage $32,100 $2,000 (20) Lions Park Concession Stand $34,800 $3,000 Liability Limits b. Boiler and machinery 01 -01 -94 01 -01 -95 $3,000,000 per accident C. Automotive physical damage 01 -01 -94 01 -01 -95 (1) Comprehensive ACV - $250 deductible (2) Collision ACV - $500 deductible IV. Criminal Acts a. Faithful performance blanket position $100,000 per loss b. Money and securities (broad form) Various C. Depositor's forgery $100,000 City of Brooklyn Center TABLE 15 DEMOGRAPHIC STATISTICS Last Ten Fiscal Years School Enrollments (3) Mpls- St.Paul No. 286 Fiscal Unemployment C.P.I. No. 11 No. 279 No. 281 Earle Year Population Rate 1 % (2) Anoka Osseo Robbinsdale Brown 1984 30,820 4.8% N/A 1,103 2,039 700 1,310 1985 30,630 4.5% N/A 1,032 2,003 567 1,326 1986 30,267 3.9% 1.3% 1,011 1,838 555 1,361 1987 29,759 4.1% 3.0% 989 1,674 570 1,376 1988 29,420 3.5% 5.0% 989 1,674 563 1,456 1989 28,578 3.5% 4.1% 671 1,674 563 1,652 1990 28,810 3.2% 4.1% 642 1,616 540 1,747 1991 28,887 4.6% 2.3% 807 1,680 521 1,327 1992 28,558 4.4% 1.4% 7 1 17 526 1 709 6 1 8 , 1993 (4) 28,558 4.3% 2.7% 691 1,106 540 1,685 (1) Minnesota Department of Jobs and Training, Research and Statistics Dept. Twin Cities metro area average for year. 296 -6545 (2) U.S. Department of Labor, Bureau of Labor Statistics. 290 -3996 All urban consumers, (CPI -U) 1982 -84, second half change from prior year. (3) School enrollment data was supplied by the schools. (4) 1992 population estimate. - 120 - TABLE 16 City of Brooklyn Center (Continued MISCELLANEOUS STATISTICAL FACTS next page) December 31, 1993 Date of Incorporation February 14, 1911 Date of Adoption of City Charter November 8, 1966 Date City Charter Effective December 8, 1966 Form of Government Council- Manager Fiscal Year Begins January 1 Area of City 8 1/2 square miles Miles of Streets: City 105.69 County 6.49 State 10.79 Miles of Storm Sewers 41.13 Number of Street Lights: Owned by N.S.P 1012 Owned by City 73 Building Permits: Number Estimated Issued Cost 1993 520 $11,437,250 1992 573 14,286,465 1991 466 8,800,980 1990 504 8,035,605 1989 526 19,217,696 1988 554 10,846,987 1987 573 10,421,724 1986 604 28,594,810 1985 521 32,328,938 1984 545 15,606,354 City Employees as of December 31, 1993 i Regular full -time 145 Temporary or part -time 165 Total 310 Fire Protection: Number of Stat^cns 2 Number of Full -time Employees 1 Number of Volunteer Firemen 33 Police Protection: Number of Stations 1 Number of Full -time Employees 53 Number of Part -time Employees 20 - 121 - City of Brooklyn Center TABLE 16 MISCELLANEOUS STATISTICAL FACTS (Continued from December 31, 1993 prior page) Parks and Recreation: ■ Park property totals 522 acres developed to serve a wide variety of i recreational interests. Area include playlots, playgrounds, playfields, trails, nature areas and an arboretum. Playgrounds 17 Park shelters 17 Ice skating rinks 7 Hockey rinks 5 Softball diamonds 26 Baseball diamonds 6 Tennis courts 18 Basketball courts 15 Municipal Water Plant: Number of connections 8,881 Average daily consumption in gallons 3,103,260 Peak daily consumption in gallons 6,302,000 Plant capacity - gallons per day 17,652,000 Miles of water mains 114.582 Number of fire hydrants 837 Number of wells 9 Number of elevated reservoirs 3 Storage capacity in gallons 3,000,000 Water rate per thousand gallons $0.82 Municipal Sewer Plant; Number of connections 8,804 Miles of sanitary sewer 104.98 Daily disposal capacity in gallons 10,938,240 Number of lift stations 10 Residential rate per quarter $42.50 Municipal Liquor Stores (Off - sale): Number of owned stores 2 Number of leased stores 1 1993 sales $2,615,955 Elections: Last General Election - November 3, 1992 Registered voters 20,640 Votes cast 15,642 Percentage of registered voters voting 76% Last Municipal Election - 1992 Registered voters 20,640 Votes cast 15,642 Percentage of registered voters voting 76% - 122 - CITY OF BROOKLYN CENTER Schedule of Federal Financial Assistance for the Year Ended December 31, 1993 and Independent Auditors' Reports it i ' CITY OF BROOKLYN CENTER, MINNESOTA TABLE OF CONTENTS Page INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF 1 FEDERAL FINANCIAL ASSISTANCE SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 2 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS 3 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 4 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 5 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE BASED ON THE AUDIT OF THE FINANCIAL STATEMENTS 7 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 9 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 12 I Deloifte & Touche 1 400 One Financial Plaza Telephone: (612) 397 -4000 120 South Sixth Street Facsimile: (612) 397 -4450 Minneapolis, Minnesota 55402 -1844 INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Honorable Mayor and Members of the Ci ty Council City of Brooklyn Center, Minnesota 1 We have audited the general purpose financial statements of the City Broo Center, �' Y Minnesota as of and for the year ended December 31, 1993 and have issued our reports thereon dated April 8, 1994. These general purpose financial statements are the responsibility of the management of the City of Brooklyn Center, Minnesota. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the ' general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City of Brooklyn Center, Minnesota, taken as a whole. The accompanying Schedule of Federal Financial Assistance, which is also the responsibility of the management of the City of Brooklyn Center, Minnesota, is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. This report is intended for the information of the mayor and city council members, management, and others within the City of Brooklyn Center, Minnesota. However, this report is a matter of public record and its distribution is not limited. ' April 8, 1994 Deloittebuche Tohmatsu International CITY OF BROOKLYN CENTER, MINNESOTA SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED DECEMBER 31, 1993 Federal Federal Grantor Pass - Through CFDA Grantor /Program Title Number Expenditures U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT - Passed through Hennepin County - Community Development Block Grant 14.218 $ 240,781 U.S. DEPARTMENT OF JUSTICE - Passed through the Minnesota Department of Public Safety - Drug Control and System Improvement - Formula Grant 16.579 11,348 ' FEDERAL EMERGENCY MANAGEMENT AGENCY - Passed through the Hennepin County Division of Emergency Preparedness: Civil Defense 83.503 6,000 Civil Defense 83.513 3,496 DEPARTMENT OF NATURAL RESOURCES - Passed through Hennepin County - Small Business Tree Planting Program 59.009 5,000 TOTAL FEDERAL FINANCIAL ASSISTANCE $ 266,625 i 1 1 2 1 Deloifte & Touche 400 One Financial Plaza Telephone: (612) 397 -4000 �® 120 South Sixth Street Facsimile: (612) 397 -4450 Minneapolis, Minnesota 55402 -1844 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS Honorable Mayor and Members of the City Council City of Brooklyn Center, Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center, Minnesota (the City) as of December 31, 1993 and for the year then ended and have issued our report thereon dated April 8, 1994. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant to Minnesota Statute 6.65. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the City of Brooklyn Center, Minnesota is the responsibility of the management of the City of Brooklyn Center, Minnesota. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the City of Brooklyn Center, Minnesota complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those provisions. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested for the City: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that, with respect to items tested, the City complied, in all material respects, with the provisions referred to above. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with such legal provisions. However, the results of our procedures disclosed an immaterial instance of noncompliance which is described in the accompanying Schedule of Findings and Questioned Costs. This report is intended for the information of the mayor and city council members, management, and others within the City of Brooklyn Center, Minnesota. However, this report is a matter of public record and its distribution is not limited. April 8, 1994 Delolttebuche Tohmatsu International 3 1 Deloifte & buche 400 One Financial Plaza Telephone: (612) 397 -4000 �® 120 South Sixth Street Facsimile: (612) 397 -4450 Minneapolis, Minnesota 55402 -1844 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Honorable Mayor and Members of the City Council City of Brooklyn Center, Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center, Minnesota as of and for the year ended December 31, 1993 and have issued our report thereon dated April 8, 1994. We have also applied procedures to test the City of Brooklyn Center, Minnesota's compliance with general requirements applicable to federal financial assistance programs and have issued our report thereon dated April 8, 1994. In connection with our audit of the 1993 general purpose financial statements of the City of Brooklyn Center, Minnesota and with our consideration of the City of Brooklyn Center, Minnesota's control structure used to administer federal financial assistance programs, and assessment of control risk as required by Office of Management and Budget Circular A -128, Audits of State and Local Governments, we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended December 31, 1993. As required by OMB Circular A -128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Brooklyn Center, Minnesota's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Brooklyn Center, Minnesota had not complied, in all material respects, with those ' requirements. This report is intended for the information of the mayor and city council members, management, and others within the City of Brooklyn Center, Minnesota. However, this report is a matter of public record and its distribution is not limited. a 4& 4 Z — - ;,:: � '�>� April 8, 1994 Deloittebuche bhmatsu International 4 t Deloifte & Touche 400 One Financial Plaza Telephone: (612) 397 -4000 I\ 120 South Sixth Street Facsimile: (612) 397 -4450 Minneapolis, Minnesota 55402 -1844 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO 1 FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and Members of the City Council City of Brooklyn Center, Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center, Minnesota as of and for the year ended December 31, 1993 and have issued our report thereon dated April 8, 1994. We have applied procedures to test the City of Brooklyn Center, Minnesota's compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended December 31, 1 1993: • Political activity (Hatch Act and Intergovernmental Personnel Act of 1970, as amended) • Civil rights • Relocation assistance and real property acquisition • Allowable costs /cost principles • Drug -free Workplace Act • Administrative requirements The requirements of the Davis -Bacon Act, cash management (reimbursement basis only), and federal financial reports are not applicable to the federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were limited to the applicable procedures described in Office of Management and Budget's Compliance Supplement for Single Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Brooklyn Center, Minnesota's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. i With respect to the items tested, the results of those procedures disclosed no material instances ' of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Brooklyn Center, Minnesota had not complied, in all material respects, with those requirements. Deloittebuche Tohmatsu International s This report is intended for the information of the mayor and city council members, management, and others within the City of Brooklyn Center, Minnesota. However, this report is a matter of public record and its distribution is not limited. ttp /-- r April 8, 1994 II ' , 6 Deloifte & Touche 400 One Financial Plaza Telephone: (612) 397 -4000 �\ 120 South Sixth Street Facsimile: (612) 397 -4450 Minneapolis, Minnesota 55402 -1844 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE BASED ON THE AUDIT OF THE FINANCIAL STATEMENTS Honorable Mayor and Members of the City Council City of Brooklyn Center, Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center, Minnesota as of and for the year ended December 31, 1993 and have issued our report thereon dated April 8, 1994. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit of the general purpose financial statements of the City of Brooklyn Center, Minnesota for the year ended December 31, 1993, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the City of Brooklyn Center, Minnesota is responsible for establishing and maintaining the internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the ' preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: cash receipts, cash disbursements, ' receivables, payables, payroll, and general ledger. Deloittebuche Tohmatsu International 7 ' For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control ' structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation in the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. However, we noted certain matters involving the internal control structure and its operation that we have reported to the management of the City of Brooklyn Center, Minnesota in a separate letter dated April 8, 1994. This report is intended for the information of the mayor and city council members, management, and others within the City of Brooklyn Center, Minnesota. However, this report is a matter of public record and its distribution is not limited. April 8, 1994 8 Deloifte & buche 400 One Financial Plaza Telephone: (612) 397 -4000 I® 120 South Sixth Street Facsimile: (612) 397 -4450 Minneapolis, Minnesota 55402 -1844 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and Members of the City Council City of Brooklyn Center, Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center, Minnesota (the City) as of and for the year ended December 31, 1993 and have issued our report thereon dated April 8, 1994. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A -128, Audits of State and Local Governments. Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the City of Brooklyn Center, Minnesota complied with laws and regulations, noncompliance with which would be material to a federal financial ' assistance program. In planning and performing our audit for the year ended December 31, 1993, we considered ' the City's internal control structure and assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinions on the City's general purpose financial statements and on its compliance with requirements applicable to programs and to report on the internal control structure in accordance with OMB Circular A -128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have ' addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated April 8, 1994. The management of the City of Brooklyn Center, Minnesota is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are ' executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in Deloittebuche Tohmatsu International 9 compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure ' policies and procedures used in administering federal financial assistance programs in the following categories: Accounting Applications: • Cash receipts • Cash disbursements • Receivables • Payables • Payroll ' General ledger General Requirements: • Political activity (Hatch Act and Intergovernmental Personnel Act of 1970, as amended) • Civil rights • Relocation assistance and real property acquisition ' 0 Allowable costs /cost principles • Drug -free Workplace Act • Administrative requirements Specific Requirements: • Types of services allowed or unallowed ' For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1993, the City of Brooklyn Center, Minnesota expended ' 0% of its total federal financial assistance under major federal financial assistance programs and 90% of its total federal financial assistance under the Community Development Block Grant Program. We performed tests of controls, as required by OMB Circular A -128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to the aforementioned nonmajor federal financial assistance program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies. Accordingly, we do not express such an opinion. ' 10 Our consideration of the internal control structure policies and procedures used in administering federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur ' and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure policies and procedures used in administering federal financial assistance programs and its operation that we consider to be material weaknesses as defined above. However, we noted matters involving the internal control structure and its operation based on our audit of the general purpose financial statements, which we reported to management of the City of Brooklyn Center, Minnesota in a report dated April 8, 1994. This report is intended for the information of the mayor and city council members, management, and others within the City of Brooklyn Center, Minnesota. However, this report is a matter of public record and its distribution is not limited. April 8, 1994 11 CITY OF BROOKLYN CENTER, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED DECEMBER 31, 1993 CURRENT -YEAR FINDINGS Federal Financial Assistance Program Findings: None. State of Minnesota Legal Compliance Findings: Cash Collateralization: ' Minnesota State Statute 118.01 Subdivision 2 stipulates that the City's depository institution must collateralize deposits in excess of FDIC insurance coverage. Such collateral must have a ' fair market value of at least 110% of the amount of excess deposits if collateralized by qualified investments other than notes secured by first mortgages. On three of the four dates we selected when the City had large cash deposits, we found collateral pledged by the City's depository institution to be less than 110% of the City's excess deposits. The collateral deficiency on the dates selected was corrected within one to two days. Recommendation: We recommend the City closely monitor the adequacy of collateral on hand throughout the q cY g year, particularly when large deposits are made. PRIOR -YEAR FINDINGS ' None. ' 12