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Home My WebLink About10-26-1992Mayor Donald J. Murzyn. Jr. Councilmembers Sean T. Clerkin Bruce G. Nawrocki Gar) L. Peterson Robert W. Ruettimann Cit�· Manager Stuart W. Anderson CITY OF COLUMBIA HEIG 590 40th Avenue N. E. Columbia Heights, MN 55421-3 (612)782-2800 * LINDA MAGEi: ASSfSTANT T_� C!'TY MANAGER October 23, 1992 The following is the agenda for the regular meeting of the City Council to be held at 7:00 PM on Monday, October 26, 1992, in the City Council Chambers of City Hall at 590 40th A venue NE, Columbia Heights, Minnesota. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 782-2800, Extension 209, to make arrangements. Call to O,de, and Roll Cal� Pledge of Allegiance I pledge allegiance to the flag of the United States of America and to the Republic for wbfch it stands, one Nation under God, indivisible, with liberty and justice for all. Consent Agenda (All items listed with asterisks[***] are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion.) REC,S)MMENDED MOTION: Move to adopt the �onsent agenda items as indicated with an.Asterisk (***)on the Regular Council Agenda. :-.. Minutes of Previous Meeting1sI ***RECOMMENDED MOTION: Move to adopt the minutes of the Regular Council Meeting of October 12, 1992, as presented in writing; and such reading be dispensed with. Open Mike/Proclamations/Presentations � " y/· � (Open Mike is an opportunity for residents to address or raise any issue to the City ,/. Council. However, the City Council asks that the resident provide their name, address, and a statement of the item. The matter will be considered by the City Council or referred swill be allotted five minur s to present their statement or issue.)/ 1 Y.)Wv ��t div,) \ · . rodamation Declaring November as Epilepsy Month �('(J ,._ f rt"{�;:')\/ , ·SERVICE IS OUR BUSINESS"EQUAL OPPORTUNITY EMPLOYER ff.· (\ tr!0!J'qP{�v� <��- COUNCIL AGENDA Page 2 Council Meeting of October 26, 1992 1/.�f;��p) �� _·o) COMMENDED MOTION: Move to waive the reading of Resolution 92-__ , there being ample ies available for the public. COMMENDED MOTION: Move to adopt Resolution 92-__ ; Resolution authorizing the issuance 'ointly by the City of Brooklyn Center, City of Columbia Heights, City of Moorhead and the Economic evelopment authority of the City of Robbinsdale of their single family mortgage revenue refunding bonds, taxable series 1992A in the aggregate principal amount not to exceed $8,000,000, residual interest revenue bonds, Series 1992B in the aggregate principal amount not to exceed $2,000,000, and residual · nterest revenue bonds, Series 1992C, in the aggregate principal amount not to exceed $1,000,000 pursuantt\to Minnesota Statutes, Chapters 462A, 462C, 469 and Section 271.59, and approving the authorizing the ii 'e cution of various documents in connection therewith. 1 ond Reading of Ordinance 1254; Being an Ordinance Amending O :!. di ance 853, Columbia Heights ning Code, Pertaining to Non-Conforming Lots�' 5.,,.o 'k�OMMENDED MOTION: Move to waive the eading of the ordi ance, there being ample copies @!,ailable for the public. �� _5-<J_) �MENDED MOTION: Move to adopt O dinance 1254, Being an Ordinance Amending Ordinance �:c�iumbia Heights Zoning Code, Pertainin to Non-Conforming Lots. •�solufon 92-__ ; Authorizing Agreement with MN/DOT for Technical Certification Tuition RECOMMENDED MOTION: Move to waive the reading of the resolution, there being ample copies available for the public. RECOMMENDED MOTION: Move to adopt Resolution 92-__ ; establishing an agreement with MN/DOT for certification of engineering technicians with reimbursement by MC/DOT State Aid for Local Transportation Division. d.Resolution 92-__ ; Adopting the Memorandum of Understanding between the City of Columbia Heightsand the Public Managers' Association R'ECOMMENDED MOTION: Move to waive the reading of the resolution, there being ample copies Move to adopt Resolution 92-__ ; regarding the Memorandum of nderstanding between the City of Columbia Heights and the Public Managers' Association, effective nuary 1, 1993 -December 31, 1994. esolution 92-__ ; Being a Resolution Concerning a_�stitutional Andment to Create � N__yw , P�ty Taxpayers' Trust Fund in Minnesota -_ L AArllo,,,�, � I_) � (YLQV r-\l��/Yl� COMMENDED MOTION: rove ta. wai� the reading of the resolution, there being ample copieO'v ilable to the public. � !:::> .,,9) �MMENDED MOTION: Move to adopt Resolution 92-__ ; being a resolution concerning a §n;tTt�tional amendment to create a \ property taxpa�e s' truy,t fund in Minnesota. -��_5.,/{) iJ ',,.�. C...)Otber Ordinances and Resolutions (,.,,Y · · (J' COUNCIL AGENDA Page 3 Council Meeting of October 26, 1992 Appointment to Human Services Commission RECOMMENDED MOTION: Move to appoint Elizabeth Fairley to the Human Services Commission to expiring April, 1994, as recommended by the Human Services Commission. � J 8.Old Business / - /---0 a.Award of Bid -1993 Shared Ride Contract � � 1/4coMMENDED MOTION: Move to award e Alternative A Bid for the Shared Ride Para-Transit c5?{-t�ogram contract to Yellow Taxi Service Corporation-t&F--ea:icendar year 1993, based upon low responsiblebid received; and, that the Mayor and City Manager be authorized to enter into a contract for same subject to approval by the Regional Transit Board. ALTERNATE RECOMMENDED MOTION: Move to award the Alternative B bid for the Shared Ride Para -Transit Program contract to Yellow Taxi Service Corporation for calendar year 1993, based upon low respo�ble bid received; and, that the Mayor and City Manager be authorized to enter into a contract for subject to approval by the Regional Transit Board. Other Old Business Bu_S_in_ess Religious Access Channel RECOMMENDED MOTION: Move to approve the request of Cable TV North Central to move the Relig_ip,us Access Channel from channel 57 to channel 56, effective November 18, 1992. :f' l\. wonl of Bid fo, Puk Building Accessibility Imprnvement Prnject � COMMENDED MOTION: Move to award the Park Building A �y Improvement Project for cKenna Park, Huset Park, Prestemon Park and Mathaire Pa7ioes;M Building Company, Inc. of inneapolis, Minnesota, as the lowest qualified responsible bidder in the amount of $35,218; and, rthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. AL TERNA TE RECOMMENDED MOTION: Move to award the PaTk Building Accessibility Improvement Project for McKenna Park, Huset Park, Prestemon park, Mathaire Park and Silver Lake Beach to KM Building company, Inc. of Minneapolis, Minnesota, in the amount of $44,266; and, furthermore, to authorize the Mayor and City Manager to enter into an agreement for the sam e . tTERNATE RECOMMENDED MOTION: Move to transfer $1,338 from the Undesignated General nd to the Park Building accessibility Improvement Project. ** ward of Bid for Municipal Service Center Storage Yard Lighting RECOMMENDED MOTION: Move to award the bid for the Municipal Service Center Storage Yard Lighting to Heights Electric Company of Columbia Heights, Minnesota, as the lowest qualified responsible bidder in the amount of $7,071; and, furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. COUNCIL AGENDA Page 4 Council Meeting of October 26, 1992 r w �v dt;c� uthorization to Attend Fleet Maintenance Advanced Training �-Of-Town r__!f'- COMMENDED MOTION: Move to authorize the attendance of Tom Hosch and B�dberg at the Fleet Maintenance Advanced Training course by HSB Reliability Technologies Corporation to be held November 14-18, 4v,Lakeland, Florida. , -. n"") �r Conditioning Condenser Replacement, Liquor Store #3 �� L{:--" RECOMMENDED MOTION: Move to ratify the action of the City Manager to replace t'i\.e furnace an� a�tioning condenser at Liquor Store #3 by Anderson Heating in an amount of $6,359Dased on lo,W c_...; uotation. � LIA /,"'--Authorization to Establish Public Hearing for Consideration of Alley Lighting (� � lih R�MENDED MOTION: Move to establish November 23, 1992, 7:00 PM, as a publ��/ nsideration of alley lighting between Fillmore & Pierce, 46th to 47th Avenues. / � LTERNA TE MOTION #1: Move to authorize the Mayor and City Manager to enter into an agreement with Tautges, Redpath & Co. to perform the City and Fire Relief Association audits for the years 1992 through 1994. AL TERNA TE MOTION #2: Move to authorize the Mayor and City Manager to enter into an agreement with Deloitte & Touche to perfor�be City ¥Jd Fire �eli Association audits for the years 1992 through 1994. I �_3-� �A O ;--f/uJ-�J-/i,�� veto authorize the yor and City Manager to en�o an agreement tJ 92/164 Attachments the City audit for the yeais 1992 through 1994, al'-d, ta enter into a11 ,�bdu � � tbe f,ire Relief Assoc'.ations' audits foA WORK SESSION TO FOLWW REGULAR COUNCIL Mayor Donald J. Murzyn. Jr. Council members Sean T. Clerk.in Bruce G. Nawrocki Gary L. Peterson Roben W. Ruenimann Cit�· Manager Stuan W. Anderson CITY OF COLUMBIA HEIGHTS 590 40th Avenue N. E. Columbia Heights, MN 55421-3878 (612)782-2800 NOVEMBER IS EPILEPSY MONTH IN COLUMBIA HEIGHTS WHEREAS: There are more than 100,000 Minnesotans with some form of epilepsy; and WHEREAS: Epilepsy is the second most common neurological disfunction or physical impairment, not a disease, but a disorder of the nervous system; and WHEREAS: Sixty percent of those persons who have epilepsy are elementary school children or younger which is approximately one child in every second classroom; and WHEREAS: Early diagnosis and attention to the social and neurological aspects of epilepsy will afford people better control; and WHEREAS: There continues to be a need for improved education and more information regarding public attitudes toward understanding and accepting those persons with epilepsy. NOW,.THEREFORE, BE IT RESOLVED, that I, Donald J. Murzyn, Jr., Mayor of the City of Columbia Heights, do hereby proclaim the month of November as EPILEPSY MONTH IN THE CITY OF COLUMBIA HEIGHTS and encourage the residents of our City to increase their awareness of the needs of those who have epilepsy. Mayor Donald J. Murzyn, Jr. Columbia Heights, Minnesota November, 1992 "SERVICE IS OUR BUSINESS" EQUAL OPPORTUNITY EMPLOYER OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL REGULAR COUNCIL MEETING OCTOBER 12, 1992 The Council Meeting was called to order at 7:00 p.m. by Mayor Murzyn. 1.ROLL CALL 2 . 3. Nawrocki, Clerkin, Ruettimann, Peterson, Murzyn -present PLEDGE OF ALLEGIANCE' CONSENT AGENDA The following items were approved on the Consent Agenda: Approval of Minutes of Previous Meetings The Council approved the minutes of the September 28, 1992 Council Meeting as presented and there were no corrections. Resolution No. 92-30; Business License Fee Schedule The reading of the resolution was waived there being ample copies available for the public. RESOLUTION NO. 92-30 ESTABLISHING 1993 BUSINESS LICENSE FEES WHEREAS: Ordinance No. 853, City Code of 1977, pertaining to commercial licensing regulations provides for the establishing of annual license fees; and, WHEREAS: The City has participated in a survey of metropolitan municipalities regarding business license fees charged by other communities; and WHEREAS: The City is attempting to maintain business licenses which ar e comparable; and WHEREAS: The City annually reviews its business license fee schedule; NOW, THEREFORE, BE IT RESOLVED that the attached proposed license fee schedule be adopted and effective January 1, 1993. REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 2 Passed this 12th day of October, 1992. Offered by: Seconded by: Roll call: Nawrocki Clerkin All ayes Mayor Donald J. Murzyn, Jr. Jo-Anne Student, Council Secretary Request to Install Yield Signs on Third Street at 45th Avenue The Council authorized the installation of a yield sign on Third Street at 45th Avenue based on the recommendation of the Traffic Commission. Request to Install a stop sign and "Watch For Pedestrians" sign on 40th Avenue Between Jackson and Van Buren Streets The Council authorized the installation of a stop sign and "Watch For Pedestrians" sign at 40th Avenue for southbound traffic in the alley between Jackson Street and Van Buren Street based on the recommendation of the Traffic Conunission. Approval of License Applications The Council approved the license applications as listed upon payment of the proper fees. Payment of Bills The Council approved payment of the bills as listed out of proper funds. 4.APPROVAL OF CONSENT AGENDA Motion by Nawrocki, second by Clerkin to approve the consentagenda as presented. Roll call: All ayes 5.OPEN MIKE/PROCLAMATION S/PRESENTATIONS There was no one present for Open Mike and there were nopresentations or proclamations. Request to Install Stop Signs on Jefferson Street at 43rdAvenue A petition was received from residents in the area of42nd/43rd Avenues and Jefferson Street requesting the REGULAR COUNCIL MEETING OCTOBER 12, i992 PAGE 3 installation of stop signs on Jefferson Street. This request received considerable discussion at the recent Traffic Commission Meeting and the Commission recommends approval. The Public Works Director advised that state aid standards do not address placement of stop signs. Jefferson Street is a State Aid Street. Motion by Murzyn, second by Peterson to authorize the installation of stop signs on Jefferson Street at 43rd Avenue as recommended by the Traffic Commission. Roll call: All ayes S.OPEN MIKE 6. There was no one present for Open Mike. PUBLIC HEARINGS/RESOLUTIONS/ORDINANCES a.Pub 1 i c Hear i nq Regard i nq Condemnation of Hazardous Bui Id i nqLocated at 4207 Central Avenue Firefighter Flermoen conducted on-site inspections of this structure as has the Assistant Building Inspector in response to complaints. Flermoen gave the Council photos of the property which reflected its present condition. He stated that there is no heated running water; a stove and refrigerator were absent on the initial inspection but were moved in by October S, 1992; the heating system is non-functional and disconnected; the general condition of the exterior of the house and its foundation are in poor condition; plaster is missing from interior walls and ceilings due to roof leaks; windows and doors show rot and have glass missing; and the oarage is dilapidated, rotten and without weather protection. Flermoen concluded that the house is not fit for human habitation and is a hazardous building. Although the house appears to be presently inhabited by a buyer of the property, it was indicated he intended to move by October 5, 1992. The City Attorney advised that the property lists Mr. & Mrs. Nestrud as owners of record. Both of these people are deceased and their son, Lloyd w. Nestrud, is representing the estate. All affected parties, the estate, Lloyd Nestrud and Robert Dufour, the person purchasing the property and residing there, have been properly notified of this public hearing. Lloyd Nestrud advised that he has a signed purchase agreement REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 4 with Robert Dufour for the property. He has received a down payment and he feels the ownership is still in question. He observed that if the structures were to be razed nothing could be built on the property. This is in a Limited Business District and the lot is only forty feet wide which would not meet the requirements for a building in that zone. Councilmember Nawrocki felt additional information should be gotten regarding the future of this property if the structure were razed. The Executive Director of the HRA was requested to gather additional information. The new owner of the property south of this parcel stated he is interested in purchasing the lot and would be willing to demolish the structure. Motion by Nawrocki, second by Ruettimann to recess the public hearing until the Call of the Chair later in the meeting. Roll call: All ayes b.Second Reading of Ordinance No. 1236, An Ordinance AmendingOrdinance No. 853, City Code of 1977, Pertaining to theRegulation of Skateboards, Rollerskis, Rollerskates andRollerblades on Public and Private Grounds A resident suggested that his sons may be breaking the law if this ordinance is adopted. He stated they use their rollerblades to go to a friend's home which is located in the prohibited area as mentioned in the ordinance. He noted that many youngsters use rollerblading seasonally to keep in shape for the hockey season. Discussion continued regarding the use of paved surfaces for the activities addressed in the ordinance. There was concurrence that there are problems being experienced with the these types of equipment in the business district. Motion by Clerkin, second by Peterson to table this ordinance for additional information until November 9, 1992. Roll call: All ayes Mayor Murzyn recalled the public hearing on the hazardous building at 4207 Central Avenue The HRA Executive Director advised he has researched the required lot width for a structure in the Limited Business District and it must be a minimum of fifty feet. Councilmember Nawrocki inquired if there is an allowance for a special use permit. He was advised that there are no exceptions mentioned. REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 5 The City Attorney stated there is a provision for a variance. At this point in the proceedings a letter from Robert Dufour was delivered giving the history of his relationship with Lloyd Nestrud regarding purchase of the property. Motion by Nawrocki, second by Murzyn that there is evidence to find the structures at 4207 Central Avenue hazardous and in violation of the law and the City Council orders the existing structures to be razed, demolished and all parts of the former structures including concrete slabs and foundations to be removed. Utilities are to be cut off and sealed per the Engineering Department's requirements and the site must then be restored to a safe condition with fill as necessary. Such correction shall be completed within forty-five days of this date and a progress report be given to the City Council at thirty days. Roll call: All ayes c.Second Reading of Ordinance No. 1249, Being an OrdinancePertaining to Conduct on Licensed Premises Motion by Murzyn, second by Ruettimann to waive the reading of the ordinance there being ample copies available for the public. Roll call: All ayes ORDINANCE NO. 1249 BEING AN ORDINANCE PERTAINING TO CONDUCT ON LICENSED PREMISES The City of Columbia Heights does ordain: Section l: Section SA.410 of the City Code of 1977, as amended, passed June 21, 1997, which is currently reserved, shall hereafter read as follows, to-wit: SA.410(1). It shall be the responsibility of the licensee to take appropriate action fol lowing conduct by persons occupying the premises which is determined to be disorderly, in violation of any of the following statutes or ordinances: (a)Minn.Stat. 609.75 through 609.76, which prohibit gamblingi (b)Minn. Stat. 609.321 through 609.324 which prohibitprostitution and acts relating thereto; REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 6 (c)Minn. Stat. 152.01 through 152.025, and 152.027, subds. 1and 2, which prohibit the unlawful sale or possession ofcontrolled substances; (d)Minn. Stat. 340A.401, which prohibits the unlawful sale ofalcoholic beverages; (e)Minn. Stat. 609.33, which prohibits owning, leasing,operating, managing, maintaining, or conducting a disorderlyhouse, or inviting or attempting to invite others to visit orremain in a disorderly house; (f)Section 10.312 of this code,which prohibits noisy assemblies; (g)Minn. Stat. 97B.021, 97B.045, 609.66 through 609.67 and624.712 through 624.716, and section 10.307 of this code,which prohibit the unlawful possession, transportation, saleor use of a weapon; or (h)Minn. Stat. 609.72, which prohibits disorderly conduct. SA.410(2). The Police Chief (Department) shall be responsible for enforcement and administration of this section. SA.410(3). Upon determination by the Police Chief (Department) that a licensed premises was used in a disorderly manner, as described in section (1), the Police Chief {Department) shall notify the licensee by mail of the violation and direct the licensee to take steps to prevent further violations. SA.410(4}. If another instance of disorderly use of the licensed premises occurs within twelve (12) months of an incident for which a notice in subsection (3) was given, the Police Chief (Department) shall notify the licensee by mail of the violation and shall also require the licensee to submit a written report of the actions taken, and proposed to be taken, by the licensee to prevent further disorderly use of the premises. This written report shall be submitted to the Police Chief (Department) within five (5) days of receipt of the notice of disorderly use of the premises and shall detail all actions taken by the licensee in response to all notices of disorderly use of the premises within the preceding twelve (12)months. If the licensee fails to comply with therequirements of this subsection, the rental dwelling licensefor the premises may be denied, revoked, suspended, or notrenewed. An action to deny, revoke, suspend, or not renew a REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 7 license under this section shall be initiated by the City Council at the request of the Police Chief (Department) in the manner described in Section 5A.408(1), and shall proceed according to the procedures established in Sections 5.102 and 5 .104. 5A.410(5). If another instance of disorderly use of the licensed premises occurs within twelve (12) months after any two (2) previous instances of disorderly use for which notices were sent to the licensee pursuant to this section, the rental dwelling 1 icense for the premises may be denied, revoked, suspended, or not renewed. An action to deny, revoke, suspend, or not renew a license under this section shall be initiated by the City Counci 1 at the request of the Pol ice Chief {Department) in the manner described in Section 5A.408(1), and shal 1 proceed according to the procedures established in Sections 5.102 and 5.104. SA.410(2). The Police Chief (Department) shall be responsible for enforcement and administration of this section. SA. 410 ( 3). Upon determination by the Pol ice Chief (Department) that a licensed premises was used in a disorderly manner, as described in Section (1), the Police Chief (Department) shall notify the licensee by mail of the violation and direct the licensee to take steps to prevent further violations. 5A.410(4). If another instance of disorderly use of the 1 i censed premises occurs within twe 1 ve ( 12) months of an incident for which a notice in Subsection (3) was given, the Police Chief (Department) shall notify the licensee by mail of the violation and shall also require the licensee to submit a written report of the actions taken, and proposed to be taken, by the 1 icensee to prevent further disorderly use of the premises. This written report shall be submitted to the Police Chief (Department) within five (5) days of receipt of the notice of disorderly use of the premises and shall detail all actions taken by the licensee in response to all notices of disorderly use of the premises within the preceding twelve (12) months. If the licensee fails to comply with the requirements of this subsection, the rental dwelling license for the premises may be denied, revoked, suspended, or not renewed. An action to deny, revoke, suspend, or not renew a license under this section shall be initiated by the City Council at the request of the Police Chief (Department) in the manner des er i bed in Section SA. 40 8 { 1) , and sha 11 proceed according to the procedures established in Sections 5.102 and 5. 104. REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 8 SA.410(5). If another instance of disorderly use of the licensed premises occurs within twelve (12) months after any two (2) previous instances of disorderly use for which notices were sent to the licensee pursuant to this section, the rental dwelling license for the premises may be denied, revoked, suspended, or not renewed. An action to deny, revoke, suspend, or not renew a license under this section shall be initiated by the City Council at the request of the Police Chief (Department) in the manner described in Section SA.408(1), and shal 1 proceed according to the procedures established in Sections 5.102 and 5.104. SA.410(6). No adverse license action shall be imposed where the instance of disorderly use of the licensed premises occurred during the pendency of eviction proceedings (unlawful detainer) or within thirty (30) days of notice being given by the licensee to a tenant to vacate the premises, where the disorderly use was related to conduct by that tenant or by other occupants or guests of the tenant's unit. Evict ion proceedings shall not be a bar to adverse license action, however, unless they are diligently pursued by the licensee. Further, an action to deny, revoke, suspend, or not renew a .license based upon violations of this section may be postponed or discontinued at any time if it appears that the licensee has taken appropriate measures which will prevent further instances of disorderly use. SA. 410(7). A determination that the licensed premises has been used in a disorderly manner as described in subsection (1)shall be made upon substantial evidence to support such adetermination. It shall not be necessary that criminal chargesbe brought to support a determination of disorderly use, norshall the fact of dismisssl or acquittal of criminal chargesoperate as a bar to adverse license action under this section. Section 2. This ordinance shall be in full force and effect from and after thirty (30) days after its passage. First Reading: Second Reading: Date of Passage: Offered by: Seconded by: Roll call: September 28, 1992 October 12, 1992 October 12, 1992 Ruettimann Peterson All ayes Mayor Donald J. Murzyn, Jr. Jo-Anne Student, Council Secretary REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 9 d.Second Reading of Ordinance No. 1252, Being an OrdinanceRegulating Unnecessary Noise and Odors The City Manager advised this ordinance enhances the "Loud Party" ordinance. Councilmember Nawrocki felt it is subjective and may be difficult to enforce. He renewed his request for staff to gather information reqarding how other communities handle these types of situations. Motion by Murzyn, second by Ruettimann to waive the reading of the ordinance there being ample copies avai !able for the public. Roll call: All ayes ORDINANCE NO. 1252 BEING AN ORDINANCE REGULATING UNNECESSARY NOISE AND ODORS The City of Columbia Heights does ordain: Section 1: An amendment to Section 8.203 of the Public Health and Safety Ordinance adding the following: 8.203(8) UNNECESSARY NOISE OR ODORS GENERALLY: No person, in any public or private place, shall make or assist in making, by any manner or means, any loud, unpleasant, or raucous noise or odor disturbing to others, unless the same be reasonably necessary to the preservation of life, health, safety or property. This section (8.203(8)) is enforceable twenty-four (24)hours a day. 8.2 0 3 ( 9) OFFENSIVE USE OF SOUND AMPLIFYING EQUIPMENT: Noperson shall use or maintain any sound-amplifying equipmentwhen the use or maintenance of such equipment creates noise soloud and unnr.tural in their time, place, use, or maintenanceas to annoy, injure, or endanger the safety, health, comfort,or repose of any persons. This sectio� (8.203(9)) isenforceable twenty-four (24) hours a day. 8.203(10) NOISY ASSEMBLY:Subdivision 1 Definition: The term "noisy assembly" shall mean a gathering of more than one person in a residential area or building between the hours of 10 p.m. and 7 a.m. that produces noise that unreasonably disturbs the peace, quiet, or repose of a person or persons of ordinary sensibility. Subdivision 2 Prohibition: (a) No person shall participate in, visit, or remain at a gathering knowing or having reason to know that the gathering is a noisy assembly, except persons who have come to the gathering for the sole purpose of abating REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 10 the disturbance. (b) No person shall knowingly permit real estate under such person's care or control to be used for a noisy assembly. This section (8.203(10)) is enforceable during the hours stated. Section 2: EFFECTIVE DATE: This ordinanced shall be in full force and effect from and after the date of its passaqe and publication. First Reading: Second Reading: Date of Passage: Offered by: Seconded by: Roll call: September 28, 1992 October 12, 1992 October 12, 1992 Ruettimann Peterson All ayes Mayor Donald J. Murzyn, Jr. Jo-Anne Student, Council Secretary f.Resolution No. 92-31; Resolution Certifying DelinquentAssessments Motion by Ruettimann, second by Peterson to waive the reading of the resolution there being ample copies available for the public. Roll call: All ayes RESOLUTION NO. 92-31 CERTIFICATION OF DELINQUENT ASSESSMENTS BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, that THE COUNTY AUDITOR be, and he is hereby directed, to levy the delinquent special assessments, delinquent utility, shade tree and weed charges on the properties in the City of Columbia Heights.as subrnited on the attached pa�es and filed in the Assessment Book for 1992 totaling $61,281.10. BE IT FURTHER RESOLVED that the aforegoing amounts shall be included in the individual real estate tax statements for the current year and identified thereon as "Special Assessments Fund #1994. SAID LEVIES shal 1 be enforced and collected in the manner provided for the enforcement and collection of State and REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 11 and County taxes under and in accordance with the prov1s1ons of the general laws of the State. All assessments with penalties and interest as indicated thereon paid to the County Treasurer shall belong to the City of Columbia Heights and shall be turned over to the County Treasurer in the manner provided by the City Charter and Ordinances. THE CITY OF COLUMBIA HEIGHTS shall accept payments on these levies until October 7, 1992. Upon receipt of said payments the County will be notified to remove this levy from the tax rolls. Passed this 12th day of October, 1992. Offered by: Seconded by: Roll call: Ruettimann Peterson All ayes Mayor Donald J. Murzyn, Jr. Jo-Anne Student, Council Secretary 7.COMMUNICATIONS a.Planning and Zoning Commission The minutes of the October 6, 1992 Planning and Zoning Commission meeting were included in the agenda packet for informational purposes only. No Council action was required. Commissioner Ryan has not been able to attend a Commission meeting since March. Councilmember Nawrocki noted that some members of the City Council had requested Mr. Ryan to serve even though he indicated his job responsibilities may interfere with his active participation and attendance. Further applications will be sought for this appointment. b.Approval and Adoption of Columbia Heights ComprehensivePlan Update Motion by Ruettimann, second by Clerkin to approve and the Columbia Heights Comprehensive Plan Update, September 30, 1992, as the City's Comprehensive effective immediately .. Roll call: All ayes adopt dated Plan, REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 12 8.OLD BUSINESS 9. a.Retaining Wall Councilmember Nawrocki inquired as to the status of the situation where a retaining wall was removed on the alley behind 941 45th Avenue which is between Central Avenue and Tyler Street. He had understood that a new retaining wall was to be put in and has noted that trees have been removed from the area. The City Manager will follow up on this matter. b.Water Problem Being Experienced Councilmember Nawrocki requested current information regarding the follow up on a water problem being experienced at 3704 Tyler Street. The Public Works Director responded that to make a permanent correction the property to the north of 3704 Tyler Street must be entered and probably a berm installed to redirect the water from the alley. He had not pursued this as it would involve private property. He will follow up on the matter and report on it at the next Council Meeting. NEW BUSINESS a.Update to Records Retention Schedule There was some discussion regarding the length of time which site plan, construction and blueprint records should be retained. Motion by Clerkin, second by Peterson to adopt the Minnesota Retention Schedule revisions and direct the City Manager to forward them to the Minnesota Department of Administration for approval. Roll call: All ayes b.Authorization to Purchase a Replacement Vertical Auger Councilmember Nawrocki had two concerns; the first was whether the specifications were drafted so an "open" bid could be made and the second was with regard to the possibility that the auger currently in the City's inventory had some life left in i t Councilmember Peterson inquired if repairs could be made on the present auger which would put it back into service. The Public Works Director stated it could be repaired for REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 13 approximately $500 if parts could be found or made. Some of the hydraulic assist parts need repair. He also assured the Council that the bid specs were written so they could be openly bid on. He again stated he feels this piece of equipment is dangerous to use. Motion by Peterson, second by Ruettimann to authorize the purchase of one 1992 SIMCO Model 2400 SK-1, vertical auger from Hayden-Murphy Company of Bloomington, Minnesota, the lowest, qualified, responsible bidder in the amount of $20,645 including the trade-in of the 1969 Long/Airdox unit; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. Roll call: Clerkin, Ruettimann, Peterson, Murzyn -aye Nawrocki -nay c.Request to Seek Bids for Railings at Huset Park SkatingRink -Project #9121 Motion by Clerkin, second by Peterson to authorize staff to seek bids to install ornamental railing along the retaining wall at Huset Park skating rink. Roll call: All ayes Staff felt this would cost between $4,500 and $5,000. d.Authorization to Purchase a Pedestrain Bridge for HusetPark Skating Rink -Project #9121 Motion by Ruettimann, second by Peterson to authorize staff to purchase a 32' "Edo Style" bridge as a proprietary item from Community Recreation and Sports Products, No.rthcentral Inc. of Minneapolis, for $6,680 plus sales tax for a total of $7.114.20, and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. Roll call: All ayes e.Furnace and Aid Conditioning Condenser Replacement,Heights Liquor Councilmember Nawrocki inquired if any local firms had been contacted regarding their interest in being included in the bidding for this project. He was advised they had not. Motion by Nawrocki, second by Murzyn to table this matter until local companies have been contacted to determine if they would be interested in bidding on this project. The City Manager requested the timeframes for this project be considered as there will be cold weather coming soon. He recommended that a "not to exceed" clause be included in the REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 14 bid so continued movement can be made on the project. The motion was withdrawn. Motion by Murzyn, second by Ruettimann to authorize the Mayor and City Manager to negotiate a contract to -replace the furnace at the Heights Liquor Store not to exceed $3,225, Roll call: All ayes Motion by Murzyn, second by Ruettimann to authorize staff to seek formal bids for the air conditioning condenser at the Heights Liquor Store and to include local vendors. Roll call: All ayes f.Award of Bid -1993 Share Ride Contract Councilmember Nawrocki felt the cities of Fridley and Hilltop and Anoka County should be contacted regarding their continued financial support of the Shared Ride Program before the contract is approved. He also requested staff pursue additional funding from the Regional Transit Board and from Anoka County. Motion by Nawrocki, second by Clerkin to delay further consideration of this matter until the next Council meeting pending information received regarding additional funding and participation by other entities. Roll call: All ayes g.Purchase of Street Decorations Motion by Murzyn, second by Peterson to purchase amber gold 4 1/2" metallized garland and amber bulbs to modify 28 snowflake decorations for $1,467, and 28 -18'19" amber gold pole wrap and 37 -18'19" green metallized pole wrap for $2,080; and 2 -63" candle wreaths, 6 custom made 28" x 80" banners; and 3 -12' pine and silver branched pine pole wrap for $1,940 for a total amount of $5,487 from Main Street Designs of Golden Valley, Minnesota, with $2,066.46 from 101-45200-5180 and $3,420.54 from 883-45200-5180. Roll call: All ayes Counci !member Nawrocki requested that the phrase "City of Columbia Heights" be added to the bottom of the banners. The City Manager advised that the decorations will be installed initially on 40th and Central Avenues. REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 15 h.Federal Cable Legislation Councilmember Nawrocki advised the Council that the recently passed federal legislation on cable television really does very little to protect the consumer. The Federal Communications Commission is the reoulating body and is very understaffed. No additional local reoulation was approved by this legislation. He noted that the franchise can still increase the cable rates five percent each year without a need for permission. 10.REPORTS a.Report of the City Manager The City Manager's report was submitted in written form and the following items were discussed: Operational Report -Police Department: The City Manager advised the Council of a statistical error in the Police Department Operational Report. Retirement of the City Manager: Counci !member Nawrocki suggested it would be procedurally correct to formally accept the City Manager's resignation. Mot ion by Nawrocki, second by Murzyn to note that whereas Stuart w. Anderson has given his notice in writing to the Council of his retirement, effective March 31, 1993 and whereas Stu has served the City very well both as its Police Chief and its City Manager, the City Council wishes him well in his retirement and accepts his letter of resignation. Roll call: All ayes Lease for New Liquor Store Site: Councilmember Nawrocki inquired as to the progress of securing a lease for the City's new liquor store. He was advised that staff is in the process of negotiating a lease. Councilmember Nawrocki requested that a letter be sent to those residents who have expressed an interest in this matter advising them of the date of the Council meeting where it will be an agenda item. REGULAR COUNCIL MEETING OCTOBER 12, 1992 PAGE 16 b.Report of the City Attorney The City Attorney had nothing to report at this time. ADJOURNMENT Motion by Ruettimann, second by Peterson to adjourn the meeting at 10:30 p.m. Roll call: All ayes Mayor Donald J. Murzyn, Jr. Jo-Anne Student, Council Secretary CITY OF COLUMBIA HEIGHTS AGENDA SECTION: RESOLUTIONS ITEM: POTENTIAL REFUNDING OF 1982 SINGLE FAMILY MORTGAGE REVENUE BONDS NO: LA_. Meeting of: DATE: OCT. 17, 1992 October 26, 1992 CITY MANAGER APPROVAL BY: s , 'J-0 A V On July 27, 1992 the City Council gave preliminary approval to pursue the issuance of bonds to refund the City of Brooklyn Center, City of Columbia Heights, City of Moorhead and HRA of City of Robbinsdale Single Family Mortgage Revenue Bonds, Series, 1982. A copy of that resolution and backup information is attached as Appendix "A". Since July it has became necessary and desirable to issue taxable type bonds to refund the subject bonds. Details on this are included in Appendix "B". Attached as Appendix "C" is a section of the proposed "Indenture of Trust" reflecting the clause on Mortgage Forgiveness. Attached as Appendix "D" is the proposed "Resolution Authorizing the Issuance. Approving Execution of Various Documents." Kathy Aho and HRA staff will be present to answer questions at the meeting. . and RECOMMENDED MOTION: Move to waive the reading of Resolution No. copies available. ___ , there being ample RECOMMENDED MOTION: Move to adopt Resolution No • .,,.,,.,===; "RESOLUTION AUTHORIZING THE ISSUANCEJOINTLY BY CITY OF BROOKLYN CENTER, CITY OF COLUMBIA HEIGHTS, CITY OF MOORHEAD AND THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ROBBINSDALE OF THEIR SINGLE FAMILY MORTGAGE REVENUE REFUNDING BONDS, TAXABLE SERIES 1992A IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $8,000,000, RESIDUAL INTEREST REVENUE BONDS, SERIES 1992b IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $2,000,000, AND RESIDUAL INTEREST REVENUE BONDS, SERIES 1992C, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $1,000,000 PURSUANT TO MINNESOTA STATUTES, CHAPTERS 462A, 462C, 469 AND SECTION 271.59, AND APPROVING AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS IN CONNECTION THEREWITH" cc: Springsted Financial (Kathy Aho) Holmes & Graven (Barbara Portwood) COUNCIL ACTION: CITY OF COLUMBIA HEIGHTS RESOLUTION 92-19 "GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF BONDS TO REFUND THE CITY OF BROOKLYN CENTER, CITY OP COLOMBIA HEIGHTS, CITY OP MOORHEAD AND THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ROBBINSDALE, MINNESOTA, SINGLE FAMILY MORTGAGE REVENUE BONDS, SERIES 1982. WHEREAS, the City of Brooklyn center, the City of Columbia Heights, the City of Moorhead and the Housing and Redevelopment Authority in and for the City of Robbinsdale, Minnesota (together, the "Issuers") have jointly issued their Single Family Mortgage Revenue Bonds Series 1982 (the "1982 Bonds") for the purpose of financing the acquisition of home mortgages for low and moderate income first time homebuyers; and WHEREAS, proposals have been made to the Issuers which indicate that the issuance by the Issuers of revenue refunding bonds ("Refunding Bonds") for the purpose of refunding of the 1982 Bonds will release significant cash to the Issuers; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights, Minnesota (the "City") as follows: 1.The City hereby finds and determines that it is in the best interestof the public health, safety and welfare of the City of Columbia Heights that the City, together with the other entities which constitute the Issuer, jointly issue their Refunding Bonds to refund the outstanding principal amount of the 1982 Bonds, and the City hereby preliminarily approves the issuance of such Refunding Bonds. Such approval is subject to the mutual agreement of the Issuers of the terms and conditions of the Refunding Bonds and provisions for their payment. In any event it is understood that the Refunding Bonds shall not constitute a charge, lien or encumbrance legal or equitable upon any property of the City except the trust estate pledged thereto. 2.Miller & Schroeder, Financial, Inc., is hereby authorized to act asthe underwriter for the Refunding Bonds. The law firm of Holmes and Graven Chartered, is hereby authorized to act as bond counsel, and to assist in the preparation and review of necessary documents relating to the Refunding Bonds. Springsted, Inc., is hereby authorized to act as fiscal consultant with respect to the issuance of the Bonds. The City officers and staff are hereby authorized to assist the working group in the preparation of documents. Payment of fees and expenses of the transaction will be paid only from funds available from the transaction. 3.The adoption of this resolution does not constitute a guarantee orfirm commitment that the City will approve the issuance of the Refunding Bonds. The City retains the right in its sole discretion to withdraw from participation and not to issue the Refunding Bonds if the City should determine at any time prior to issuance thereof that the it is not in the best interest of the City to issue the Refunding Bonds. Adopted by the City Council of the City of Columbia Heights on the 27th day of July , 1992. Motion by: Nawrocki Seconded by: Ruettimann Roll Call: All Ayes By_ �:2#��.rz Attested Student, S-ecretary'..t?' ,_,/);? /7€/1/1J J X r; CITY OP COLUMBIA BE::GHTS Heet.ing of: JnJy 27, 1992 AGENDA SECTION: RESOLUTION OllG!NATING DEPT. : HRA CI'?Y HANAGn. NO: ·'"'APP'B.OVAL I!:E:H: POTENTIAL REFUNDING OF 1982 SINGLE FAMILY MORTGAGE REVENUE BONDS BY�s�� t'tA)J _q'v ) J,,.,..J... NO: "-· £.DAT!:: JULY 22, 1992 In December, 1982 the Cities of Brooklyn Center, Columbia Heights, and Moorhead and Housing and Redevelopment Authority of Robbinsdale, Minnesota (the "Issuers") sold $31,758,000 Single Family Mortgage Revenue Bonds Series 1982. Proceeds from these bonds were used to finance mortgages for first time homebuyers to purchase homes in the Issuers cities. Over the years since the bonds were issued, extra assets have accumulated in the program. These extra assets will continue to accumulate within the program and ultimately be paid out to the issuers when the bonds are retired. Alternatively, market conditions are now such that the Issuers have the option of restructuring the program to advance the release of the assets. Staff from the four Issuers (and the Issuers Financial Consultant, Springsted Financial) have met several times now to consider proposals received from Underwriters wishing to assist the ·Issuers in restructuring (or refunding) the subject bonds. As a result of proposals received, Springsteds analysis of the proposals, and interviews ofthe four underwriters who submitted proposals (conducted by Springsted and the four citiesstaff representatives and Mr. Nawrocki of Columbia Heights), the Miller-Schroeder proposalwas found the most advantageous and is recommended to be the underwriter, should therestructuring be pursued. The 1982 Bond program was issued jointly by the four separate issuers. Springsted Financialsuggests that in considering the option of restructuring the bond program that the Issuersfirst agree to abide by the determination of the majority of the separate Issuers with eachIssuer having one vote. Participation in the program originally and currently as representedby mortgagee outstanding ranges from 20\ to 28\ per Issuer indicating a roughly equivalentinterest in any financial benefit to be gained (estimated between $400,000 and $470,000 foreach city) Each participant entity is being asked if they feel it is to their advantage to restructureto release assets at this time. If the Council feels that the bonds should be restructuredto release the assets at this time, the City Council is asked to instruct staff to pursuethis option with Miller & Schroeder as underwriter. Attached as Appendix "A" is information from Springsted. Attached as Appendix "B" is aResolution giving preliminary approval to issue bonds to refund the subject bonds. RECOMMENDED MOTION: Move to waive the reading of Resolution No. copies available to the public. ___ , there being ample RECOMMENDED MOTION: Move to adopt Resolution No. ___ ; "Giving Preliminary approval to the Issuance for bonds to Refund the City of Brooklyn Center, City of Columbia Heights, City of Moorhead, and the Housing and Redevelopment Authority in and for the City of Robbinsdale, Minnesota, Single Family Mortgage Revenue Bonds Series 1982." cc: Springsted Financial (Dan Hartman) Holmes & Graven (Barbara Portwood) COUNCIL ACTION: A///JE7VDI X /l / �� tr� SPRINGSTED PUBLIC FINANCE ADVISORS Home Office 85 East Seventh Place Suite l DD Saint Paul, MN 55101-2143 (612)223-3000Fax: (612) 223-3002 MEMORANDUM TO: City of Brooklyn Center, Minnesota City of Columbia Heights, Minnesota City of Moorhead, Minnesota 222 South Ninth Street Suite 2825 Minneapolis, MN 55402-3368 (612)333-9177Fax: (612) 333-2363 16655 West Bluemound Road Suite 290 Brookfield, WI 53005-5935 (414)782-8222Fax: (414) 782-2904 6800 College Boulevard Suite 600 Overland Park, KS 66211-1533 (913)345-8062Fax: (913) 345-1770 1800 K Street NW Suite 831 Washington, DC 20006-2200 (202)466-3344Fax: (202) 223-1362 Economic Development Authority in and for the City of Robbinsdale, Minnesota FROM: Springsted Inc., Kathleen Aho DATE: July 9, 1992 SUBJECT: $31,758,000 Single Family Mortgage Revenue Bonds Series 1982 In December, 1982, the Cities and the then Housing and Redevelopment Authority in and for the City of Robbinsdale (the "Issuers") sold the above-mentioned bonds to fund single family mortgages within their respective jurisdictions. Over the years since the bonds were issued, extra assets have accumulated within the program. These extra assets will accumulate within the program and ultimately be paid out to the Issuers when the bonds are retired. Alternatively, market conditions are such that the Issuers have the option of restructuring the program to advance the release of these assets. This memorandum presents background information and discusses the two options in further detail. The Program The majority of bond proceeds from the 1982 bonds were used to originate mortgages that range in interest rate from 10.90% to 11.65%. As the mortgages repay, the income is used to pay interest and scheduled principal on the bonds and any excess income is used to redeem additional principal on the bonds. The interest rates on the remaining bonds range from 10.00% to 10.75%. Over the years, the higher interest rates on the mortgages have provided for the ongoing costs (primarily trustee and insurance fees) and also resulted in a continual /1 �/-tf;/'�P.Z k '/f ;/ July 9,1992 Page 2 reduction of bond principal at a faster rate than the reduction on mortgage principal. By applying the extra interest earned to reduction of bond principal, the total of cash and outstanding mortgage principal currently held by the trustee exceed the outstanding bonds by over $1.5 million. The bond program has several unique features incorporated into it. One is mortgage forgiveness. If the program is permitted to run to completion, outstanding principal on any remaining mortgages is "forgiven" on the later of June 1 , 2003 or when the bonds are retired. Mortgage forgiveness was incorporated to enable the bond program to comply with federal regulations relating to investment yield restrictions that control such programs. A second unique feature is a 2.00% participation fee due upon final payment of any mortgage, whe·ther the mortgage runs to its schedule term, is forgiven, or is prepaid. The participation fee is based on the original amount of the mortgage. There is general awareness among participants in the program that the forgiveness provisions exist even though they are not included in actual mortgage documents, but appear instead in the bond related documents. The options discussed In this memorandum all Incorporate the honoring of mortgage forgiveness. The examples discussed either incorporate forgiveness as originally contemplated by the bond documents, or in the case of the restructuring option, may include the equivalent of forgiveness for the mortgagor in a slightly modified form. Program Residuals The value that the Issuers will receive from the program is generated by the interest rate spread between the mortgages and the bonds. As such, the magnitude of the excess assets, or program residuals, depends in part on whether the mortgages prepay or run to maturity since they generate more interest spread the longer they remain outstanding. In the bond program, mortgage forgiveness causes some distortion of this otherwise simple principal as will be seen in the numbers presented later. ·We have constructed a model which projects the cash flow from the bond program undervarious mortgage prepayment scenarios. The industry uses prepayment standards referred toas PSA levels of prepayment. A 1 00% PSA prepayment speed is the equivalent of a constantannual prepayment rate of 6%. Similarly, a 250% PSA prepayment speed is the equivalent of aconstant annual prepayment rate of 15%. The Issuers' bond program mortgages have beenprepaying at a speed of 220% since origination. Over the more current six to twelve monthperiod, they have prepaid at a rate in excess of 400%. Obviously, the current market rates aredriving much of the current prepayment activity, however, the reasons for mortgageprepayment are many and varied and future prepayment speeds can't be predicted with anyconfidence. For this reason and the effect that prepayments have on ultimate programresiduals, we have run the program out at three prepayment levels: 250% PSA, 400% PSA, and550% PSA. The final example, 550% PSA, was run to determine if there is a pattern to theprogram results as the prepayment rate increases as opposed to an expectation thatmortgages will prepay at 550% PSA. Because bonds are redeemed from excess earnings and from mortgage prepayments, thebond issue is retired earlier as the mortgage prepayment speed increases. The following tableillustrates the residuals available to the Issuers at the three prepayment speeds identifiedabove. "'5 •u Q.: ' \ \ \ \ \ /JJ July 9,1992 Page 3 [ ESTIMATED MORTGAGE RESIDUALS I ----------Mortgage Prepayment Rate ------I Residuals Beginning Residuals Ending Future Value of Residuals Present Value @ 4.0% Present Value @ 5.0% Present Value @ 6.0% Mortgage Forgiveness Date Forgiveness Amount 250% PSA 12/1/99 6/1/03 $2,171,800 $1,515,900 $1,387,500 $1,270,600 6/1/03 $1,082,600 400% PSA 12/1 /97 6/1 /03 $2,218,600 $1,648,300 $1,532,500 $1,425,600 6/1/03 $313,200 550% PSA 12/1/96 6/1/03 $1,990,905 $1,556,860 $1,465,800 $1,380,700 6/1/03 $91,300 If the program runs to maturity, the Issuers will receive any funds the trustee has remaining after the bonds are retired plus any remaining payments from the mortgages that are still outstanding until the forgiveness date, June 1, 2003. The first row of the table above indicates when the Issuers will begin to receive their first cash payments from the program. The second row indicates when the final payment will be received. Because in each case, the bonds are retired in advance of the forgiveness date, the final residual payment will be received in June 2003. The third row in the column, titled "Future Value of Residuals" indicates the estimated total of the payments that the Issuers will receive without regard to when the payments are received. To provide an accurate method of comparison, the following three rows show the present value of those future residuals. The 4.0% reflects current short-term investment rates. The 6.0% reflects a longer term, fixed-rate borrowing cost for the Issuers. As you can see, the selection of a present value rate has a significant impact on the value the residuals have in present value terms. The final two rows of the table show when forgiveness will occur and how much mortgage principal is forgiven under each prepayment assumption. As mentioned earlier, the mortgagors are also responsible for a program participation fee to be paid when the mortgage is retired. Calculation of the precise amount of fees yet to be paid relies on detailed mortgage information that is not readily available, however, we have calculated a responsible estimate of those fees under each of the three prepayment assumptions. The future value and present value of the participation fees are outlined in the following table. /}l/ July 9,1992 Page 4 [ ESTIMATED PARTICIPATION FEES 1---------Mortgage Prepayment Rate ------1 Future Value Present Value @ 4.0% Present Value@ 5.0% Present Value@ 6.0% 250% PSA $182,100 I $146,400 $139,soo I $133,200 I 400% PSA $182,100 $158,700 $153,800 $149,200 550% PSA $182,100 $165,300 $161,600 $158,000 The value of the program if left to run to maturity is summarized below for each of the prepayment and present value assumptions. It is the total of the mortgage residuals and the participations fees. The Issuers do not need to take any action to receive these amounts. Please remember that the value shown is the total to be shared among the Issuers, not a total per Issuer. [ 1982 TOTAL BOND PROGRAM VALUE !---------Mortgage Prepayment Rate ------1 Future Value Present Value@ 4.0% Present Value @ 5.0% Present Value @ 6.0% Bond Program Restructuring 250% PSA $2,353,900 $1,662,300 $1,527,000 $1,403,800 400% PSA $2,400,700 $1,807,000 $1,686,300 $1,574,800 550% PSA $2,173,005 $1,722,160 $1,627,400 $1,538,700 Current market conditions are such that the bond program can be restructured to release accumulated assets today as opposed to releasing them when the bonds are retired. This is accomplished by using the program assets of cash and mortgages, to create cash through the outright sale of mortgages or by using the mortgages as security for a new bond issue. In either case, the money is used to redeem the bonds at their next call date, December 1, 1992. Proposals were solicited from interested underwriting firms to determine the potential offered by such a restructuring. The responses indicate that $1,800,000 to $1,900,000 can be released from the program under a restructuring. The estimates rely on many factors including the status of the mortgage portfolio (which can be accurately determined only after an exhaustive, in-depth review), the amount of mortgages outstanding at the time of the restructuring, extension of certain federal law provisions relating to tax-exempt mortgage bonds (versions of which have been passed separately by the House Ways and Means and the Senate and must now be reconciled), certain federal law provisions requiring that transactions of this type be /} s- July 9,1992 Page 5 done within 90 days of the December 1 redemption date, and prevailing market conditions at the time of the restructuring. Proposers were asked to incorporate the forgiveness concept in their responses. As a result of the proposals received, interviews with the proposing underwriters, and follow-up analysis, staff representatives from each of the four Issuers concluded with our agreement that the Miller & Schroeder proposal was the most advantageous should a restructuring be pursued. Requested Action The bond program was issued jointly by the four separate issuers. We suggest that in considering the option of restructuring the bond program that the Issuers first agree to abide by the determination of the majority of the separate Issuers with each Issuer having one vote. Participation in the program originally and currently as represented by mortgages outstanding ranges from 20% to 28% per Issuer indicating a roughly equivalent interest in any financial benefit to be gained. Each participant should then consider whether they feel it to be to their advantage to restructure the issue at this time or to let it continue as originally structured. If your conclusion is to restructure to release assets at this time, we ask that you instruct staff to pursue this option with Miller & Schroeder as underwriter. Additional action will be required upon further development of the proposed financing. A separate resolution has been prepared by Holmes & Graven as bond counsel to facilitate the Issuers in providing guidance to staff at this time. mmc cc: Ms. Barbara L. Portwood, Holmes & Graven /J b CITY OF COLUMBIA HEIGHTS Resolution No. GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF BONDS TO REFUND THE CITY OF BROOKLYN CENTER, CITY OF COLUMBIA HEIGHTS, CITY OF MOORHEAD AND THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ROBBINSDALE, MINNESOTA, SINGLE FAMILY MORTGAGE REVENUE BONDS, SERIES 1982 WHEREAS, the City of Brooklyn Center, the City of Columbia Heights, the City of Moorhead and the Housing and Redevelopment Authority in and for the City of Robbinsdale, Minnesota (together, the "Issuers") have jointly issued their Single Family Mortgage Revenue Bonds Series 1982 (the "1982 Bonds") for the purpose of financing the acquisition of home mortgages for low and moderate income first time home buyers; and WHEREAS, proposals have been made to the Issuers which indicate that the issuance by the Issuers of revenue refundin g bonds ("Refunding Bonds") for the purpose of refunding of the 1982 Bonds will release significant cash to the Issuers; NOW THEREFORE, be it resolved by the City Council of the City of Columbia Heights, Minnesota (the "City") as follows: 1.The City hereby finds and determines that it is in the best interest of the public health, safety and welfare of the City of Columbia Heights that the City, together with the other entities which constitute the Issuer, jointly issue their Refunding Bonds to refund the outstanding principal amount of the 1982 Bonds, and the City hereby preliminarily approves the issuance of such Refunding Bonds. Such approval is subject to the mutual agreement of the Issuers of the terms and conditions of the Refunding Bonds and provisions for their payment. In any event it is understood that the Refunding Bonds shall not constitute a charge, lien or encumbrance legal or equitable upon any property of the City except the trust estate pledged thereto. 2.Miller & Schroeder, Financial, Inc., is hereby authorized to act as the underwriter for the Refunding Bonds. The law firm of Holmes and Graven, Chartered, is hereby authorized to act as bond counsel, and to assist in the preparation and review of necessary documents relating to the Refunding Bonds. Springsted, Inc. , is hereby authorized to act as fiscal consultant with respect to the issuance of the Bonds. The City officers and staff are hereby authorized to assist the working group in the preparation of documents. 3.The adoption of this resolution does not constitute a guarantee or firm commitment that the City will approve the issuance of the Refunding Bonds. The City retains the right in its sole discretion to withdraw from participation and not to issue the Refunding Bonds if the City should determine at any time prior to issuance thereof that it is not in the best interest of the City to issue the Refunding Bonds. I}Pf'€t1VOZ)O B IA7 -- Adopted by the City Council of the City of Columbia Heights on the _ day of , 1992.---- Attest: B2 19 <J t i, oa� Housing & Redevelopment Authority of Columbia Heights Comm1 .. 10nera ELl!ebiua Heintz PaDicia Jindra Bruce Nawrocki Richard Dustin Jon P. Pawluk 590 N.E. 40th Avenue, Columbia Heights, MN 55421 Fax: (612) 782-2801 • (612) 782-2854 Mayor and City Council City of Columbia Heights 590 40th Ave NEColumbia Heights, MN 55421 October 2, 1992 RE: Refunding of 1982 Housing Revenue Bonds($31,758,000--Cities of Brooklyn Center, Columbia Heights, and Moorhead and Housing and Redevelopment Authority of Robbinsdale(Now Economic Development Authority of Robbinsdale) Dear Mayor Murzyn and City Council Members: Yesterday Councilmember Nawrocki and I attended a meeting of the four cities representatives on the above referenced bond issue. At this meeting the possibility of proceeding with the refunding of the bond issue with taxable (rather than tax exempt) revenue bonds was discussed. It now does not appear that the necessary federal legislation to allow for a tax exempt bond issue will be approved in time to meet the timing requirements for this bond issue. Due to arbitrage requirements and o·c.her factors, the net proceeds are expected to be the same as through the sale of tax exempt bonds($400,000 to $500,000 for each of the participating cities). The "Forgiveness" provision would remain the same as included in the current bonds with the earliest possible date of June 1, 2003. Because of the necessity to allow Miller-Schroeder and Bond Counsel time to complete all necessary paperwork, etc by November 1, the four cities concurred in proceeding with a taxable issue. This is subject to the final approval of the City Council of the involved cities during October. Enclosed is information on the time schedule and on the restructuring of the bonds. If you have any questions or would like to discuss the matter at a worksession meeting prior to your formal final approval on October 26, please call either Mr. Nawrocki at 789-8·477 or me at 782-2855. :fZm-vtJ� -7 --4;�:c:____ Donald R. Schneider Executive Director Encl cc: City Manager Kathy Aho(Springsted Financial) G:r Equal Opportunity Employer ll ,11 /l�d; )o ,, .ff " FOUR CITIES SINGLE FAMILY RESTRUCTURING 01-Oct-92 SOURCES OF FUNDS: Trust Account Revenue Fund Redemption Fund Debt Service Reserve Mortgage payments (est.) Accrued Interest (est.) Total Trust Account Taxable Bonds Tax-Exempt Subordinate CAB Bond Unrated Tax-Exempt Subordinate CAB Bond TOTAL SOURCES USES OF FUNDS: Cost of Escrow Account Allowance for Costs of Issuance Cash to Issuers TOTAL USES MORTGAGE SUMMARY (est. 11/1/92): Current Pay 30 Day Delinquent 60-90 Day Delinquent 90-120 Day DeJinquent In Foreclosure 494,000 1,586,090 614,250 358,075 85,000 6,826,795 441,819 53,658 38,907 92,509 NOTE: Example forgives the same dollar amount of mortgage principal as would have been forgiven jf no restructuring occurred. Forgiveness is esti, mated to occur on 5/1 /03. $3,137,415 5,900,000 1,550,000 500,000 $11,087,415 $8,708,207 300,000 2,079.208 $11,087,415 $7,453,688 !3 I 05-Oct-92 05-Oct-92 07-0ct-92 12-Oct-92 I0--1 'I-'?2• /I)--2,--'JJ.. /tJ --:2e-?.2 /()-,/ 9, 71 /tJ-13·?2 22-Oct-92 30-Oct-92 03-Nov-92 01-Dec-92 TIME SCHEDULE Mortgage Tape to FNMA Initial Trust documents out Initial P.O.S. distributed FNMA responds regarding mortgages Pricing and Marketing of Bonds Brooklyn Center approves bonds Columbia Heights approves bonds Moorhead approves bonds Robbinsdale approves bonds Final tape transmittal to FNMA BondClosing(C ifi�5 '-'""'/cl ;-�c..,,,-�-4. ,,,,,,e.__ls) Bond Call notices released Bonds called JL �-SPRINGSTED PUBLIC FINANCE ADVISORS Home Office 85 East Seventh Place Suite 100 Saint Paul, MN 55101-2143 (612)223-3000Fax: (612) 223-3002 October 5, 1992 Mr. Donald Schneider -..; _; ..J �\ Housing & Redevelopment Authority of Columbia Heights City of Columbia Heights 590 40th Avenue N.E. Columbia Heights, MN 55421 Mr. Gerald Sorenson, Assistant Manager City of Moorhead 500 Center Avenue, Box 779 Moorhead, MN 56560 Re: Four Cities Housing Restructuring Dear Mr. Schneider: CC C / ..:..._�,. t----,' ;,._�_,,�., C. r /7 -r ., • .---· _,; ,,. Mr. Bill Deblon 222 South Ninth Street Suite 2825 Minneapolis, MN 55402-3368 (612)333-9177Fax: (612) 333-2363 16655 West Bluemound Road Suite 290 Brookfield, WI 53005-5935 (414)782-8222Fax: (414) 782-2904 6800 College Boulevard Suite 600 Overland Park, KS 66211-1533 (913)345-8062Fax: (913) 345-1770 1800 K Street NW Suite 831 Washington, DC 20006-2200 (202)466-3344Fax: (202) 223-1362 Community Development Director City of Robbinsdale 4221 Lake Road Robbinsdale, MN 55422 Mr. Brad Hoffman,. EDA Coordinator City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Due to the uncertainty as to whether a tax bill extending the mortgage revenue bond provisions will be passed and signed before the legislators leave next week and the necessity to call the 1982 Bonds on December 1 , 1992 or wait another six months, the underwriters have reviewed the results of a taxable refunding as an option for the Four Cities housing bonds. Outside of the taxable structure of one of the bond issues being proposed, all other aspects of the process remain the same. Tha mo:1gs.ges will be incorporated into FNMA securities and the securities will be pledged to the repayment of the bonds. The precise structure that is being suggested includes a taxable bond with two traunches (similar to maturities), a tax exempt bond that is a capital appreciation bond payable only after the taxable bond is paid, and a tax-exempt bond that is also a capital appreciation bond payable only after both of the other bond issues are paid. The size of the bond issues is estimated to be $5,900,000, $1,550,000, and $500,000 respectively. The total savings generated is approximately $2,000,000, which is similar to the previous estimate of $1,900,000 on a tax-exempt issue. The reasons that the taxable structure works so well at this time is a combination of factors that include FNMA's willingness to take forgivable mortgages and the restrictions that the federal law places on the amount of return you can glean from the mortgages in a program like this. Because you can only receive a certain return from the mortgages, at some point low interest rates on the bonds begin to work against you and actually detract from the release of funds from the program. Changes in the market and the assumption of a FNMA-backed issue p'J October 5, 1992 Page 2 combine to improve the taxable bonds as an option. Ironically, this is also at a time when federal law is precluding us from proceeding on a tax-exempt basis. The issue as now proposed incorporates the same type of forgiveness terms as the original transaction. Mortgagors will have their mortgages forgiven on the later of a date in 2003 or when the bonds are repaid. The exact date of forgiveness will depend on the final structure of the issue, but it is currently estimated to be May, 2003 as opposed to June, 2003 as in the original program. Incorporation of similar forgiveness terms should eliminate any impact of the refunding on current mortgagors. Assuming acceptance of a majority of the portfolio by FNMA, the actual marketing and closing of the bond issue should happen relatively quickly. The schedule will call for Robbinsdale and Moorhead to act on "not-to-exceed" rates and not-less-than cash release numbers on October 13 and 19 respectively. Actual rates and firm estimates of release numbers will be presented to Columbia Heights and Brooklyn Center on October 26. The actual release numbers can change slightly right up until closing due to FNMA's ability to reject mortgages due to delinquency at that time; however, we should have a very good estimate of what will be available for the Cities to share. As indicated at our meeting, early next week I will be working up a methodology for your review that can be used to divide the funds. One final comment is that the funds released will be limited in use to those types of expenditures that would not otherwise qualify as "private activities". Private activity financing requires a bond allocation from the state and generally involves a private party benefitting from the financing, such as a land write-down or other developer owned project assistance. Any general governmental activity should be a permitted use of the funds. If you have any questions on potential uses of the funds, they should be directed to Barbara Portwood at Holmes & Graven. Please call me if you have any questions. Sincerely, _,i; .... � -�. -//�/�;--,.,.,,u-KathleecVA. Aho Executive Vice President cjp cc: Ms. Laura C. Pioski, Miller & Schroeder Financial, Inc. Ms. Fay Wegner, Miller & Schroeder Financial, Inc. Mr. Peter J. Czajkowski, Stifel, Nicolaus & Co., Inc. Ms. Barbara L. Portwood, Holmes & Graven Ms. Elizabeth Vobach, First Trust National Association Mr. Michael P. Murphy, Arter Hadden Haynes & Miller Mr. Mark Winkelhake, Springsted Incorporated gt/ . �. ' CITY OF BROOKLYN CENTER, CITY OF COLUMBIA HEIGHTS, CITY OF MOORHEAD AND THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ROBBINSDALE TO FIRST TRUST NATIONAL ASSOCIATION AS TRUSTEE INDENTURE OF TRUST DATED: OCTOBER l, 1992 RESIDUAL INTEREST REVENUE BONDS $-=--__,,..,.,.--=-SERIES 1992C {CONVERTIBLE CAPITAL APPRECIATION BONDS) This instrument drafted by: Holmes & Graven Chartered 470 Pillsbury Center Minneapolis, MN 55402 BLP43172 BR290-ll �� ,,, � �� 'lJZ:-i,c C I Series 1992/\ B Trustee from the "Reserve Fund" under the Series 1992/\ B Indenture. Any such amount so transferred to the Reserve Fund hereunder, as the same may be reduced by the amounts transferred to the Bond Fund pursuant to this Section, is hereinafter referred to as the "Reserve Amount". All earnings generated by the Reserve Amount shall in all cases be transferred to the Revenue Fund as and when received. If, as of any Payment Date, following the transfer described in Section 5-5 ( B) , there are insufficient funds in the Bond Fund to provide full payment of the Post Accretion Interest then due on the Bonds, and said shortfall is not due to the failure of FNMA to remit timely and full payments of the principal of and interest on the FNMA Security, then the Trustee shall transfer from the Reserve Amount to the Bond Fund the amount of the insufficiency. No funds, including earnings on the Reserve Amount, shall be used to restore any such draw on the Reserve Amount. At such time as the Trustee, the Series 1992A Trustee or.'the Series ,l992B Trustee, from and after Bond Closing, shall have received principal payments ·on the Non-FNMA Mortgage Loans in the aggregate amount of$ __ ...,,...,--_, then the Reserve Amount shall no longer be a part of the Trust Estate or subject to the lien of this Indenture, and the Trustee shall thereupon remit the Reserve Amount to the Issuer and no longer maintain the Reserve Fund. For the purpose of making its determination under Section 2-3 (E), the Trustee shall include such funds, if any, as may at the time be available in the Reserve Fund and the Trustee shall, to the extent necessary, use such available funds to make the ·full payment on the bonds described in Section 2-3(E). Section 5-11. Amounts Remaining in Funds. {a} Upon full payment of the Bonds and discharge of the Indenture, including payment of all other amounts required to be paid hereunder, A the Trustee shall (i) instruct the Servicer to provide notices of forgiveness of the Non-FNMA Mortgage Assets in the manner provide.in clause (b) of this Section 5-11; and {ii) return the FNMA Security, the unpaid principal balance of which equals the total unpaid principal balance of the vools of Mortgage Loans, to FNM4. ill _e.xchange for tllr:! .. ��ted Mortgage Loans. One day after full payment .has been made on ·the Bonds {but in no event earlier than one day after all payments of all other amo�ts required to be paid hereunder), the Trustee.shall send > by first class mail, telecopy or other means, an Exchange Notification Form in the form of Exhibit D_hereto, to FNMA, notifying FNMA of the-final Bond payment and th-e proposed date for the exchange of the FNMA Security for the related Mortgage Loans (the "Exchange Date'').� ,Such Exchange Date shall be at least fifty-five (55) days after FNMA's •. 'l'�ceipt of such Exchange Notification Form. ·· · · · ··· · . " Upon receipt of FNMA Is agreement as to the Exchange .Date J the Issuer and the Trustee shall: (i) prior to the Exchange Date., deliver a certificate to FNMA certifying that the Issu-er .has, and will continue to have as of the Exchange Date, sole right, title and interest to the FNMA Securities to be exchanged, subject to the interest of the Trustee and that the Trustee .holds all such FNMA Securitie.s relating to the pools of Mortgage Loans which are to be exci:l.anged; and (il} wire such FNMA Security to FNMA's account at the Federal Reserve Bank of New York on the Exchange Date. (: Within one Business Day of receipt of the FNMA Security, FNMA shall confirm uch receipt, an<:1 so long as the '-1:npaid principal balance of the FNMA Securities LP43172 BR290-11 36 C I equals the total unpaid principal balance of the pools of related Mortgage Loans, FNMA shall immediately thereafter deliver, and the Trustee shall accept, a release to the Trustee which shall relinquish all of FNMA 1 s right., title and interest .to the Mortgage Loans and authorize FNMA's document custodian to release all of ·the documentation relating to the Mort�ge Loans, which it has retained on. behalf of FNMA, ·to the Trustee. · · (b)No notice of forgiveness' of the 'Mortpge .Loans., which back the FNMA �ecurity shall be senf to the mortgagors, n�r ·shall .forgiv�ess be .granted by the ls suer prior to the exchange of FN,MA ·secur.irles for., Mortgage Loans as set forth above. However, immediately. following the'receipt ,pf -such.Mortgage Loans, .the Trustee. shall immediately forgiv�, each outstanding/�or:tgage Loa.zi. Upon the forgiveness of a�y,.,·Mortgage�"Loan,,]the Trust� -s�allfg:iy.e)written _:notic�·to the Servicer that all further payrnex;tts·by the Mortgagors pur�'j:iant·'to·the_terms of the Mortgage Loans are forgiven._ .,.The notic� __ sball instruct'the··servicer,,:to,,(i) notify each mortgagor of an outstanding Mort� L9an_� tfu,lt ,0 tlie\'.femai:t.tlng-payments of principal and interest under the Mortgage_Loa.n,'bave been forgiveh and must.not be ma�e, (b) �ncel and. relea�e t.�e lien, of, each Mortgage -�1!png t'o �:�orlgage Loan bemg forgiven, and (c) rennburse each· mor.tgagor for any amoun�§ inadvertently received from such Mortgagor, , aft�r Jhe forgiv�ness -of the f4ortga.ge Loan�. · The notice.shall also instruct the Servicer'to .take all actions necessary to .record a notice of satisfaction of the Mortgage with the real property record� of the county in which such records with respect to the respective Home are maintained . -"· Any mortgage files held by the Trustee shall be delivered by the Issuer on sucl.1 daj�., pursuant to the direction of the Issuer. N, , ,. ,. • • · The Trustee is hereby authorized and directed to execute an documents or take such other action as may be necessary to effectively A forgive ·the Mortgage Loans pursuant to this provision. · · · . (c)Nothing .in this Section is intended to create or convey any' r-1ght as a third party beneficiary or otherwise to any mortgagor o� other,party. to enforce this forgiveness provision. · · · BLP43172 BR290-ll 37 C2 THE CITY OF COLUMBIA HEIGHTS RESOLUTION NO. -- RESOLUTION AUTHORIZING THE ISSUANCE JOINTLY BY CITY OF BROOKLYN CENTER, CITY OF COLUMBIA HEIGHTS, CITY OF MOORHEAD AND THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ROBBINSDALE OF THEIR SINGLE FAMILY MORTGAGE REVENUE REFUNDING BONDS, TAXABLE SERIES 1992A IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $8,000,000, RESIDUAL INTEREST REVENUE BONDS, SERIES 1992B IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $2,000,000, AND RESIDUAL INTEREST REVENUE BONDS, SERIES l992C, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $1,000,000, PURSUANT TO MINNESOTA STATUTES, CHAPTERS 462A, 462C, 469 AND SECTION 471.59, AND APPROVING AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS IN CONNECTION THEREWITH BE IT RESOLVED by the City Council of the City of Columbia Heights as follows: 1.City of Brooklyn Center, City of Columbia Heights, City of Moorhead and the Housing and Redevelopment Authority of the City of Robbinsdale, as the predecessor of the Economic Development Authority of the City of Robbinsdale (the "Robbinsdale Authority") in 1982 issued their $31,758,000 Single Family Mortgage Revenue Bonds (the "Prior Bonds") to undertake a below market interest rate single family mortgage loan program to finance the acquisition by low and moderate income first-time homebuyers of single family homes located in the Cities of Brooklyn Center, Columbia Heights, Moorhead and Robbinsdale (the "Program") by acquiring qualifying mortgage loans (the "Mortgage Loans"). A portion of the Mortgage Loans have been or will be transferred to the Federal National Mortgage Association "(FNMA"), and in consideration thereof, there have been or will be issued certain single pool Guaranteed Mortgage Pass-Through Securities (collectively the "GNMA Security") , guaranteed as to timely payment of principal and interest by FNMA. Certain of the Mortgage Loans (the "Non-FNMA Mortgage Loans") have not been transferred to FNMA. It is in the best interests of the City of Columbia Heights that (a)the City of Columbia Heights, together with the City of Brooklyn Center, City BLP43105 BR290-ll 1 /1 I( " n///&vl>ZK l) of Moorhead and Robbinsdale Authority (together, the "Issuer") issue their Single Family Mortgage Revenue Refunding Bonds, Taxable Series 1992A ("Series 1992A Bonds"), to refund the Prior Bonds, (b) the Issuer issue their Residual Interest Revenue Bonds, Series 1992B ("Series 1992B Bonds") and Residual Interest Revenue Bonds, Series 1992C ("Series l992C Bonds") (the Series 1992A Bonds, Series 1992B Bonds and the Series 1992C Bonds are referred to as the "Bonds"), secured on a subordinate basis to the Series 1992A Bonds to finance certain essential governmental functions of the entities which constitute the Issuer and (c) all of such Bonds be secured by the FNMA Security and the Non-FNMA Mortgage Loans. All of such Bonds shall be issued in accordance with the Joint Powers Agreement described herein. The Issuer will issue the Bonds pursuant to the three separate Indentures of Trust hereinafter referred to, and will apply the proceeds of such Bonds as provided in such Indentures of Trust and in other documents hereinafter referred to, pursuant to Minnesota Statutes, Chapters 462A and 462C (the "Act") and Minnesota Statutes, Section 471.59 (the "Joint Powers Act"). 2.The following documents (including the exhibits ref erred to therein) have been submitted to the City of Columbia Heights for approval: a.three separate Indentures of Trust, each dated as of October 1, 1992 (the "1992A Indenture, 1992B Indenture and 1992C Indenture" respectively), to be made and entered into between the Issuer and First Trust National Association, as trustee (the "Trustee"), providing for the issuance of the Bonds, prescribing the form thereof, pledging the trust estate described therein for the security of the Bonds, and setting forth proposed recitals, covenants and agreements by the parties with respect thereto; b.the Amendment to Program Administration and Servicing Agreement, dated as of October 1, 1992 (the "Servicing Agreement"), between the Issuer, the Trustee and the Servicer, which amends and supplements that certain Program Administration and Servicing Agreement, dated as of BLP43105 BR290-ll 2 J)t December 29, 1982, executed in connection with the issuance of the Prior Bonds; c.an Amended and Restated Joint Powers Agreement, dated as of October 1, 1992 (the "Joint Powers Agreement"), by and between each of the entities which comprise the Issuer, providing, among other things, for the joint undertaking of the Program and the issuance of the Bonds by the Issuer; d.a Purchase Contract, to be dated as of the date of execution thereof (the "Purchase Contract") by and between the Issuer and Miller & Schroeder Financial, Inc. ( the "Purchaser") providing for the purchase of the Bonds by the Purchaser; and e.a First Amendment to Prior Indenture, dated as of October 1, 1992, between the Issuer and the Trustee, amending certain terms of the indenture of trust pursuant to which the Prior Bonds were issued; and f.an Escrow Agreement, dated as of October 1, 1992, between the Issuer and the Prior Trustee, to provide for the defeasance and payment of the Prior Bonds using proceeds of the Series 1992A Bonds. The agreements described and referred to in paragraphs a through f above, shall hereinafter sometimes be referred to collectively as the "Agreements". 3.It is hereby found, determined and declared that: a.The issuance of the Bonds and the defeasance of the Prior Bonds are authorized by the Act and the Joint Powers Act; and the Program and financing program therefor have been approved as required by Sections 462C.0l and 462C.04 of the Act; b.The issuance and sale of the Bonds by the Issuer, and the execution and delivery of the Agreements and the performance of all covenants and agreements of the Issuer contained therein and of all other acts and things required under the Constitution and Laws of the State of Minnesota to make the Agreements and the Bonds valid and binding obligations of the BLP43105 BR290-ll 3 !) )_ Issuer in accordance with their terms, are authorized by the Act and the Joint Powers Act; c.The issuance of the Bonds for the purposes and in the manner contemplated by the Agreements conforms or will conform to all pertinent statutes, regulations and ordinances of the State of Minnesota, and the Issuer; d.It is desirable that the Bonds in the aggregate principal amounts not to exceed the amounts set forth at Exhibit A be issued by the Issuer, on the terms set forth in the respective Indentures and the Purchase Contract, and at interest rates not to exceed those rates set forth at Exhibit A; e.The payments required or provided for by each of the Indentures are intended to produce income and revenues sufficient to provide for the payment when due of principal of, and interest on all Bonds issued under the respective Indentures, provided that it is understood that the Series 1992B Bonds shall be subordinate to the Series 1992A Bonds, and the Series 1992C Bonds shall be subordinate to both the Series 1992A Bonds and the Series 1992C Bonds; and g.Pursuant to the provisions of the Act, and as provided in the respective Indentures and the Joint Powers Agreement, the Bonds shall be retired solely from the revenues pledged thereto pursuant to the respective Indentures and a separate sinking fund shall be established for the accounting of the revenues and retirement of the Bonds. 4.The Agreements are hereby approved either in the forms on file with the City of Columbia Heights on the date hereof, or in such forms as may be approved by the Mayor and City Manager. Such of the Agreements as require the execution of the City of Columbia Heights are hereby authorized and directed to be executed or accepted, as the case may be, and delivered in the name and on behalf of the City of Columbia Heights by its Mayor and City Manager upon execution thereof by the BLP43105 BR290-ll 4 I) 3 parties thereto as appropriate, and upon final approval of the form thereof by the Mayor. The Bonds and the Agreements shall be executed and delivered as provided therein. 5.The Trustee is hereby authorized to execute and deliver such instruments for the investment of the proceeds of the Bonds as shall be satisfactory to the City Manager. 6.The form and terms of the Agreements may be varied prior to execution and delivery by the parties thereto, provided that any such variance shall not be, in the opinion of the City Manager, materially adverse to the interests of the City of Columbia Heights. The execution and delivery of the Agreements shall be conclusive evidence of the determination that any such variance was not materially adverse to the interests of the City of Columbia Heights. 7.In anticipation of the collection of revenues of the Program, there shall be issued forthwith Bonds, in the principal amount not to exceed the amounts set forth at Exhibit A, substantially in the forms set forth in the respective Indentures, the terms of which are for this purpose incorporated in this resolution and made a part hereof as if fully set forth herein. The Bonds shall mature on approximately such dates and bear interest at rates not exceeding those set forth at Exhibit A. 8.All actions of the members, employees and staff of the City of Columbia Heights heretofore taken in furtherance of the Program are hereby approved, ratified and confirmed. 9.The sale of said Bonds to the Purchaser at a price of the principal amount thereof plus accrued interest is hereby approved, and the Bonds are hereby directed to be sold to the Purchaser, subject to the terms and conditions set forth in the Purchase Contract. The Mayor and City Manager of the City of Columbia Heights are hereby authorized and directed to prepare and execute by manual or facsimile signature the Bonds as described in the respective Indentures and to cause them to be delivered to the Trustee (which is herein designated as the authenticating BLP43105 BR290-ll 5 D'I agent under Minnesota Statutes, Section 475.55) for authentication and delivery to the Purchaser, together with a certified copy of this resolution, and the other documents required by the respective Indentures. 10.The Mayor, City Manager and other officers of the City of Columbia Heights are authorized and directed to prepare and furnish when the Bonds are issued, certified copies of all proceedings and records of the City of Columbia Heights relating to each series of Bonds and such other affidavits and certificates (including but not limited to those required by bond counsel) as may be required to show the facts relating to the legality, tax exemption and marketability of the Bonds as such facts appear from the books and records in said officers custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City of Columbia Heights as to the truth of all statements made on behalf of the City of Columbia Heights and contained therein. The Mayor, City Manager and said officers are further authorized to execute such additional documents as shall be determined by the City Manager to be necessary and desirable to provide for the issuance of the Bonds. 11.In the event any of the officers of the City of Columbia Heights authorized to execute documents on behalf of the City of Columbia Heights under this resolution shall for any reason be unable to do so, any member of the City Council of the City of Columbia Heights, or any other officer of the City of Columbia Heights, is hereby directed and authorized to do so on behalf of the City of Columbia Heights, with the same effect as if executed by the officer authorized to do so in this resolution. 12.The City of Columbia Heights has been advised by the Purchaser of its intent to prepare and distribute Official Statements and/or similar offering materials in connection with the Purchaser's marketing of the Bonds, and the City of Columbia Heights consents to the same. BLP43105 BR290-ll 6 D� Adopted this ___ day of October, 1992. (Seal) BLP4Jl05 BR290-ll 7 Mayor City Manager [)b Series Series 1992A Class I Class II Series 1992B Series 1992C BLP43105 BR290-ll EXHIBIT A The Bonds Aggregate Principal Amount Not to Final Exceed: Maturities $5,500,000 12/1/15 2,500,000 12/1/15 2,000,000 12/1/15 1,000,000 12/1/15 A-1 Interest Rates Not to Exceed 6.00% 7.25 7.25 8.75 f)7 .llO/�On:1� J..1: IO<t ·g·o lL �L;.j .jlQI(.)� ;)t'1'1 l'll.l;) I C.U MEMORANDUM TO: FROM: DATE: SUBJECT: Four Cities Issuers Springsted Inc,, Kathleen Aho October 26, 1992 Estimated Costs of Issuance l{fJIOIO:.i::/IOIO..'.) C.. C : C / � C� ./-� C/7)' /U� OCT 2 6 1992 Attached pl ease find a schedule of the estimated costs of issuance for this 1 ssue. Although some of the numbers are subject to adjustment to reflect actual costs (printing, rating), the attached is a good indication of where total costs should end up. As you know, we have been having some difficult negotiations with Knutson Mortgage due to a policy change on their part regarding certain mortgages. As a result, the sale of the bonds has been delayed until we can reach a. resolut1on. I expect the offering of the bonds to occur tomorrow and will transmit results to you as soon as they are available. If by any chance the net to the Cities is less than $1,900,000 you will be contacted immediately for your advice. This is the number on wh1ch your Council's and the E.D.A. based their original dec1s1on to proceed and I would 11ke your approval before proceeding in the event that this target cannot be met. Most recent indications are that we are still in good shape and we should know with more certainty tomorrow. I will be out of the office most of the day today. If you have questions or concerns, please call and leave a message as I w111 be calling 1n throughout the day. 10/26/92 11:02 'a'612 223 3000 SPRINCSTED ESTIMATE FOUR CITIES SINGLE FAMILY RESTRUCTURING COSTS OF ISSUANCE Proposed lssue(s) size: Bond Counsel Fiscal Advisor Trustee Prior Bonds lnital Fee(s) Counsel Knutson Mortgage Rating Printing o.s.Bonds Miscellaneous Underwriter Underwriter's Counsel TechnicaJ Analysis $7,245,000 35,000 35,000 13,700 est, 9/30/92 (Inc. assignments) 3,500 est. 9/30/92 (one indenture) 1 , !iOO est. 9/30/92 30,000 under negotiation 15,000 5,000 estimate 2,000 estimate 5,000 1 ,500% 108,675 35,000 per proposal, being verified 20,QQQ per proposal, being verified $309,375 �002/002 612 223 3000 10/26/92 11:04 '5'612 223 3000 SPRINGSTED, Inc. 85 East Seventh Place, Suite 100 Saint Paul, MN. 55101�2143 SPRINCSTED (612)223-3000 (612)223-3002 fax Date: October 26, 1992 TELECOPY DATA �001/003 This 1s transmitting from a Canon Fax L770 Telecopier. We are sending 3 pages, INCLUDING this cover page. If you do not receive all of these pages: please call {612) 223-3000. Thank you. TRANSMIT TO: VOICE # TO: Donald Schneider (612)782-2854Columbia Heights TO: Gerald Sorenson (218)299-5301Moorhead TO: Bill Deblon (612)537-4534Robbinsdale TO: Brad Hoffman (612)569-3300Brooklyn Center RE: Four Cities Housing Restructuring FROM: Kathleen Aho (612)223-3048 NOTES: Original Document will be: Sent via Courier Sent overnight delivery _ Sent by mail X Not be sent CLIENT #: FAX # (612)782-2801 (218)299-5306 (612)537-7344 (612)569-3494 80201 Nl CITY COUNCIL LETTER Meeting of: October 26, 1992 AGENDA SECTION: Ordinances & Resolutions ORIGINATING DEPT.: CITY MANAGER NO: 6 Planning & Zoning APPROVAL ITEM: Zoning Ord. Amendment, Ord.#1254 BY: Evelyn Nygaard ---BY:�� _,f'L-- NO: 6.B. DATE: October 22, 1992 it>',.., The following is pertaining to Ordinance #1254, an Ordinance amending Ordinance #853, Columbia Heights Zoning Code pertaining to non-conforming lots. BACKROUND: 1002 Gould Avenue has a small non-conforming house on the rear of the lot. The owner is deceased and the family's executor approached HRA with a request that they purchase the property and raze the structure and then resell the lot. the lot is 40 feet wide by 128 feet deep for a total of 5,120 square feet of lot area. This property is zoned R-3 which requires 10,000 square feet of lot area and a minimum lot width of 70 feet. (See attached memorandum from Gregg Woods.) This impacts more than 100 similar properties in the City. An amendment to the Zoning Ordinance would allow a single family house to be built/rebuilt on these lots. Stuart Anderson, City Manager, requested Gregg Woods, City Attorney, to address this item at the August 4, 1992 Planning and Zoning Commission meeting. The amendment to our standing "grandfather" clause will allow our existing platted 40 foot lots to have a single family dwelling built/rebuilt on them. It also removes the "non conforming" status from more than 100 lots with homes already on them. This amendment would not allow the creation of a 40 foot lot, but merely addresses 40 foot lots currently platted. At the September 1, 1992 Planning and Zoning Commission meeting, Ordinance 1254 was reviewed. The Commission unanimously recommended to the City Council the approval of Ordinance #1254 for first reading which was held September 14, 1992. RECOMMENDED MOTION: Move to waive the reading of Ordinance #1254, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Ordinance #1254, being an Ordinance amending Ordinance #853, Columbia Heights Zoning Code, pertaining to non-conforming lots. COUNCIL ACTION: ORDINANCE NO. 1254 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, COLUMBIA HEIGHTS ZONING CODE, PERTAINING TO NONCONFORMING LOTS The City of Columbia Heights does ordain: SECTION 1: Section 4 9.104(4) Section 4 9.104(4) Chapter 9, Article I, Section 4, 9.104(4), of Ordinance No. 853, Columbia Heights, which currently reads as follows, to wit: GENERAL PROVISIONS Lot Provisions A lot or lot of record shall be deemed a buildable lot provided it has frontage on a public right-ofway and said space requirements for the district in which it is located or adjusted to conform as follows: (a)A lot or lot of record upon the effective dateof this Ordinance which is in an "R" Districtand which does not meet the requirements ofthis Ordinance as to area or width, may beutilized for single family detached dwellingpurposes provided the measurements of sucharea, width or open space are within sixtypercent ( 60%) of the requirements of thisOrdinance; but said lot or parcel shall not bemore intensively developed. (b)There shall be no more than one (1) principalbuilding on one lot, except as provided underSection 9.116(17). is herewith amended to read as follows: GENERAL PROVISIONS Lot Provisions A lot or lot of record shall be deemed a buildable lot provided it has frontage on a public right-ofway and said space requirements for the district in which it is located or adjusted to conform as follows: SECTION 2: First Reading: Second Reading: (a)A lot or lot of record upon the effective dateof this Ordinance which is in an "R" Districtand which does not meet the requ irements ofthis Ordinance as to area or width, may beutilized for single family detached dwellingpurposes provided the measurements of sucharea meet 100% of the front yard, side yardand rear yard setback requirements of ArticleI, Section 8, of this Ordinance, and 60% ofthe Minimum Lot Area or Lot Width requirementsof Article I, Section 8, of this Ordinance;but said lot or parcel shall not be moreintensively developed. (b)There shall be no more than one (1) principalbuilding on one lot, except as provided underSection 9.116(17). This Ordinance shall be in full force and effect from and after thirty (30) days after its passage. September 14. 1992 Date of Passage: Offered by: Seconded by: Roll Call: Donald J. Murzyn, Jr., Mayor Jo-Anne student, Council secretary TO: FROM: DATE: RE: \ 1 \99'S0'- File Gregg Woods July 14, 1992 MEMORANDUM 1002 Gould Avenue N.E. ISSUE C'"" � ·, c C c..:.,.,.., ?...... /�---- Whether an R-3 Zoned lot measuring 40 feet by 128 feet for a total of 5,120 square feet may be considered a buildable lot for a single family house. DISCUSSION R-3 Zoning requirements provide that lots meet certain minimumrequirements. Section 9.109(4). A few of these minimumrequirements are that the minimum lot width shall be 70 feet andthe minimum lot area shall be 10,000 square feet. The lot inquestion does not meet either of these minimum requirements.First of all, the lot is only 40 feet wide and the total squarefootage of the lot is 5,120 square feet thereby failing to meetboth requirements. However, Section 9.104(4) does provide anexception to the minimum requirements. These exceptions onlyapply if the lot is a lot of record upon the effective date ofthe Columbia Heights zoning ordinance. The effective date of theordinance is August 12, 1974. We have a survey of the concernedproperty which is dated April 1974, therefore, I have assumedthat the property was a lot of record prior to the effective dateof the zoning ordinance. The exception to the buildable lot requirements is that "a lot may be utilized for a single family detached dwelling provided the measurements of such area, width or open space, are within 60% of the requirements of this ordinance ••• " Neither the lot width nor the lot square footage is within 60% of the general buildable R-3 lot requirements found at Section 9.109(4). Consequently, this lot is not a buildable lot as it is presently zoned. mh cc: Don Schneider PLANNING AND ZONING COMMISSION REGULAR MEETING -MINUTES SEPTEMBER 1, 1992 PAGE 1 7.A. The Planning and Zoning Commission meeting of September 1, 1992 vas called to order at 7:05p.m. Members present were Deering, Larson, Peterson and Chairperson Szurek. Commissioner Ryan was not in attendance. Also present was Evelyn Nygaard (Building/Zoning Administrator), Don Schneider (Director of H.R.A.) and John Kalligher (City Attorney's Office). ' Motion by Larson, seconded by Deering, to approve the minutes from the meeting of August 4, 1992 as presented in writing. Roll Call: All Ayes. NEW BUSINESS: Petitions, letters and requests. Public Hearing Special Purpose Fence Case #9209-17 Case withdrawn. No action required. UNFINISHED BUSINESS. Public Hearing CUP/Site Plan Approval Case #9208-14 Steve Leckey 4401 Quincy Street N.E. Columbia Heights, Mn. Stiles Sports Bar 4005 Central Avenue N.E. Columbia Heights, Mn. Evelyn Nygaard presented a new site plan for the prop�sed sports bar at 4005 Central Avenue. Action on this request was tabled at the August meeting to allow the applicant time to provide additional information. At the August meeting, the site plan presented did not provide the required 3,000 square feet of dining area as required by Ordinance in order to grant an On Sale Liquor License. A revised site plan was presented indicating a decreased kitchen area and a dining area of 3,020 square feet with seating for approximately 195 people, thus meeting the requirements of the On Sale Liquor License Ordinance. Motion by Larson, seconded by Deering, to open the public hearing. Roll Call: All Ayes. Dan Stiles, representing the proposed sports bar at 4005 Central Avenue, presented a copy of a menu used in his restaurant in St. Paul as well as some pictures of the existing restaurant. PLANNING AND ZONING COMMISSION REGULAR MEETING -MINUTES SEPTEMBER 1, 1992 PAGE 2 Patrick Fisher, manager of the Columbia Heights Mall, stated he is in the final stages of securing approvals to finalize a parking agreement to designate the parking required for this proposed business. He submitted a layout of the parking lot indicating 65 dedicated parking spaces along the east end of the south section of the Columbia Heights Mall parking lot. Motion by Larson, seconded by Deering, to close the public hearing. Roll Call: All Ayes. Motion by Larson, seconded by Deering, to recommend to the City Council the approval of the Conditional Use Permit and Site Plan provided a formal parking agreement is provided indicating dedicated parking spaces as required for the proposed sports bar at 4005 Central Avenue. Roll Call: All Ayes. **THIS ITEM TO APPEAR ON THE CITY COUNCIL AGENDA FOR SEPTEMBER 14, 1992. STAFF REPORTS: A.Evelyn Nygaard presented a draft Ordinance #1254 amending the ZoningOrdinance to allow the construction of single family dwellings in the R-3 ZoningDistrict. She explained that currently Section 9.104(4)(8) would not allow asingle family dwelling to be constructed in the R-3 Zone on a 40 foot lot qrallow a single family dwelling to be rebuilt if destroyed or demolished on anexisting platted forty foot lot. She stated that a number of single familyhomes presently exist in the R-3 Zones throughout the City. Motion by Deering, seconded by Peterson, to recommend to the City Council the approval of Ordinance #1254 for a first reading. Roll Call: All Ayes. **THIS ITEM TO APPEAR ON THE CITY COUNCIL AGENDA FOR SEPTEMBER 14, 1992. B.Don Schneider presented a draft of the Surface Water Management Plan for theCity of Columbia Heights for review and comments from Commission members. Motion by Larson, seconded by Peterson, to adjourn the meeting at 7:30 p.m. Roll Call: All Ayes. Respectfully submitted, Kathryn Pepin Secretary to the Planning and Zoning Commission kp AGENDA SECTION: ORDINANCES & NO. RESOLUTIONS 6 ITEM: RESOLUTION AUTHORIZING CITY COUNCIL LETTER Meeting of: 10/26/92 ORIGIN�TING DEPARTMENT: CITY PUBLIC WORKS MANAGER BY: M.Winson M� NO. AGREEMENT WITH MN/DOT FOR DATE: 10/19/92 �i�E �, tffctb (!, TECHNICAL CERTIFICATION· • TUITION Beginning January 1, 1994, certified technicians must be used on all State Aid projects. The technicians must be certified in the areas of grading and base, bituminous and concrete. The total cost to the City of Columbia Heights to certify three technicians is $2,680.00. The Minnesota Department of Transportation State Aid for Local Transportation Division will reimburse the City for the training costs provided the City passes a resolution and approves the attached agreement. It is advantageous to certify all three technicians so projects continue uninterrupted during periods of vacation, sick leave and staff turnover. RECOMMENDED MOTION: Move to waive the reading of the Resolution, there being ample copies available for the public. RECOMMENDED MOTION: Move to Adopt Resolution No. __ , establishing an agreement with Mn/DOT for certification of engineering technicians with reimbursement by Mn/DOT State Aid for Local Transportation Division. MAW: jb 92-590 COUNCIL ACTION: RESOLUTION NO. REIMBURSEMENT TO CITY OF COLUMBIA HEIGHTS FOR TECHNICAL CERTIFICATION TUITION WHEREAS, the Minnesota Department of Transportation, State Aid for Local Transportation Division requires that certified technicians be used on all State Aid projects beginning on January 1, 1994, and WHEREAS, the tuition cost for these classes is eligible for reimbursement from the Administrative Account provided agreement #70081 is approved by the City Council. THEREFORE BE IT RESOLVED by the City Council of Columbia Heights that the City enter into Agreement No. 70081 with the State of Minnesota, Department of Transportation, and that the Mayor and City Manager be authorized to execute the agreement thereby assuming for and on behalf of the City all of the contractual obligations contained therein. Dated this Offered by: Seconded by: Roll Call: day of ________ , 19 CITY OF COLUMBIA HEIGHTS By: Donald J. Murzyn, Jr. Mayor Jo-Anne Student, Council Secretary State of Minnesota County of Anoka City of Columbia Heights CERTIFICATION I hereby certify that the foregoing Resolution is a true and correct copy of a resolution presented to and adopted by the City Council of Columbia Heights at a meeting thereof held in the City of Columbia Heights, Minnesota, on the ___ day of ___________ , 19_, as disclosed by the records of said City in my possession. (Seal) Deputy City Clerk MINNESOTA DEPARTMENT OF TRANSPORTATION AGREEMENT #;;co�/ ix :::J..:)u -01 SEND TYPE OF TRANSACTION Bit t=t Vendor name Address c) C, }> 0"7 l {:, I Su'( COLUMBIA HEIGHTS 637 38th Avenue NE Columbia Heights, MN 55421 Entered Entered ::pt= THIS AGREEMENT is made by and between the through the Commissioner of the Minnesota (hereinafter referred to as "MN/DOT") and and "Recipient"). State of Minnesota, acting by and Department of Transportation COLUMBIA HEIGHTS (hereinafter refer WHEREAS the State is authorized to administer the State Aid Administrative Account pursuant to MN Statute 162.06, Subd. 2; WHEREAS the Division of State Aid requires all personnel working on State Aid work be certified; WHEREAS the certification of technicians will ensure consistent inspection and high quality roads and bridges; NOW, THEREFOREL in consideration of the mutual covenants and agreements ashereinafter sec forth, the parties to this Agreement mutually agree as follows: I.Tenn of Agreement This agreement shall be effective upon such date as it is executed asto encumbrance by the Commissioner of Finance, and shall remain in effect until all obligations set forth in this agreement have been satisfactorily fulfilled or December 31, 1995, wfiichever occurs first,by which time all requests for reimbursement must be received in the State Aid Office. II.Conditions of Agreement '- All personnel working on State Aid work, including but not limited toconstruction inspectors, and field testers, must oe certified through the Technical Certification Program on all work beginning on or after January 1, 1994. III.Reimbursement by MN/DOT MN/DOT agrees to reimburse the Recipient an amount not to exceed morethan $5 ooo.oo·total tuition costs incurred for personnel working on State Aid work for the successful completion of classes taken beEweenNovember 1, 1992, and July 31, 1995. Recipient agrees to pay all costs not included in, ·or which exceed, said amount. A: Recipient must submit a resolution from the County Board/CityCouncil approving the agreement. B: Request for reimbursement must be submitted on Recipient's letterhead indicating·each participant's name, title of each coursetaken, and amount to be reimbursed for each course. C: Recipient must submit a copy of paYI!).ent voucher or a copy of thecanceled check as proof of payment for each course. D: Request must be submitted to: Assistant State Aid Engineer Dept. of Transportation, Room 420 395 John Ireland Blvd. St. Paul, MN 55155 Audits IV.All records, books, documents, and accounting procedures and practicesrelevant to this agreement are subject to auait and examiniation byMN/DOT �nd either the Legislative Auditor or State Auditor asappropriate. . . . Termination of this Agreement V.MN/DOT may withhold payment or terminate this Agreement at any time ifthe Recipient does not comply with the provisions of this Agreement. General Provisions VI.The Recipient agrees to indemnify and save and hold the State, itsagents and employees harmless from any and all claims or causes ofaction arising from the performance of this agreement by Recipient'sparticipants or employees. This clause shall not be construea to barany legal remedies Recipient or its pp.rticipant's have for the State'sfailure to fulfill it's obligation pursuant to this agreement. VII.Any amendments to this agreement shall be in writing and shall beapproved by MN/DOT and tfie Recipient. APPROVED: RECIPIENT: BY: City/County Engineer DATE: BY: City Clerk/County Auditor DATE: DEPT. ·op ADMINISTRATION BY: DATE: COMMISSIONER OF TRANSPORTATION: ·BY: DATE: ATTORNEY GENERAL: BY: DATE: DEPT. OF FINANCE BY: DATE: CITY COUNCIL LETTER Meeting of: October 26. 1992 AGENDA SECTION: ORDINANCES & RESOLUTIONS NO: 6 ITEM: 1993-1994 PMA MEMORANDUM OF NO: /J. z:>, UNDERSTANDING ORIGINATING DEPARTMENT: CITY MANAGER'S BY: L .L. MAGE� DATE: 10/22/92 CITY MANAGER APPROVAL BY=rw J j· DAT�11/o_>,.J.- The current Memorandum of Understanding between the city and the Public Managers' Association, representing Division Heads, terminates on December 31, 1992. Negotiations between the City negotiating team and PMA haveresulted in a mutually acceptable Memorandum of Understanding for the calendar year�-T�� proposed changes are as follows: 1 'l\ ��.J-,,q9 'r Wages: 1993 2% adjustment over 1992 wages 1994 1.5% adjustment to 1992 maximum and implementation of a step system Insurance: 1993 $260 per month (1992 = $250 per month) 1994 $270 per month Deferred Compensation: Employer shall pay on a dollar-for-dollar matching basis; $500 per employee for 1993; $500 per employee for 1994 (1992 = $500) Probationary Period: All newly hired, rehired, or promoted employees will serve a one-year probationary period. Vacation: Vacation leave may be used upon satisfactory completion of the first six months of the probationary period (no change from current; language inserted due to change in probationary period). The total cost package over the two years is 4.66%. Attached is a resolution which would adopt and establishing the changes as negotiated for calendar year 1993 and 1994. RECOMMENDED MOTION: Move to waive the reading of the resolution, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 92-__ ; regarding the Memorandum of Understanding between the City of Columbia Heights and the Public Managers' Association, effective January 1, 1993 -December 31, 1994. COUNCIL ACTION: CHANGES IN MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF COLUMBIA HEIGHTS AND PUBLIC MANAGERS' ASSOCIATION PROBATIONARY PERIOD All newly hired, rehired, or promoted employees will serve a one-year probationary period. LEAVE TIME Vacation Vacation leave may be used upon satisfactory completion of the first six months of the probationary period. INSURANCE The EMPLOYER will contribute up to a maximum of two-hundred and sixty dollars ($260) per month per employee for calendar year 1993 for employee life insurance, group health insurance, and dental insurance. Should the cost of such benefits be less than $260 per month, the difference may be used toward any other City-provided insurance benefit and/or ICMA deferred compensation. The EMPLOYER'S contribution per month per employee for calendar year 1994 for employee life insurance, group health insurance and dental insurance will be two-hundred and seventy ($270) dollars. Should the cost of such benefits be less than $270 per month for 1994, the difference may be used toward any other City-provided insurance benefit and/or ICMA deferred compensation. ICMA DEFERRED COMPENSATION As a form of additional compensation, the EMPLOYER shall pay on a dollar-for-dollar matching basis up to a maximum of: $500 per year per employee for 1993 $500 per year per employee for 1994 toward the ICMA Deferred Compensation Plan. DURATION This Memorandum of Understanding shall be effective as of January 1, 1993, and shall remain in force and effect until December 31, 1994. This agreement shall continue in effect until a new agreement or contract supersedes it. 102292 APPENDIX A 1993 SALARY RANGE LIBRARY DIRECTOR FIRE CHIEF FINANCE DIRECTOR/CITY CLERK POLICE CHIEF PW DIRECTOR/CITY ENGINEER Minimum $ 3,494 $ 3,898 $ 4,241 $ 4,129 $ 4,399 REBECCA LOADER . . . . . . . . . . . . . . . . . . . . $4,420 per month CHARLIE KEWATT ..................... $4,413 per month WILLIAM ELRITE ...................... $5,262 per month DAVID MAWHORTER ................... $4,877 per month MARK WINSON ........................ $4,888 per month 1994 SALARY 75% 77% 79% Entry 1 Yr. 2 Yr. LIBRARY DIRECTOR 3,500 3,593 3,686 FIRE CHIEF 3,905 4,009 4,113 FINANCE DIRECTOR/CITY CLERK 4,248 4,361 4,475 POLICE CHIEF 4,136 4,246 4,356 PW DIRECTOR/CITY ENGINEER 4,406 4,524 4,641 Midpoint $ 4,046 $ 4,514 $ 4,911 $4,781 $ 5,094 81% 3 Yr. 3,779 4,217 4,588 4,466 4,759 83% 4 Yr. 3,873 4,321 4,701 4,577 4,876 Maximum $ 4,597 $ 5,129 $ 5,580 $ 5,433 $ 5,788 85% 5 Yr. 3,966 4,425 4,814 4,687 4,994 87% 6 Yr. 4,059 4,529 4,928 4,797 5,111 REBECCA LOADER ... : ............... . $4,526 per month $4,666 per month $4,529 per month $5,324 per month $5,018 per month $4,994 per month -January 1, 1994 -July 30, 1994 -Effective July 31, 1994 CHARLIE KEWATT .................... . WILLIAM ELRITE ..................... . DAVID MAWHORTER .................. . MARK WINSON ....................... . 91% 8 Yr. 4,246 4,737 5,154 5,018 5,346 Movement through the salary schedule is contingent upon satisfactory performance as adjudged by the EMPLOYER. 94% 97% 100% 10 Yr. 13 Yr. 16 Yr. 4,386 4,526 4,666 4,894 5,050 5,206 5,324 5,494 5,664 5,183 5,349 5,514 5,523 5,699 5,875 Movement through the range will be effective on the employees' anniversary dates of the year which corresponds to designated steps of the range. The Public Works Director (Mark Winson) will begin movement through the salary schedule and move to the next step on June 15, 1995. The Police Chief (David Mawhorter) will begin movement through the salary schedule and move to the next step on March 23, 1996. 8 RESOLUTION 92--- BEING A RESOLUTION REGARDING MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF COLUMBIA HEIGHTS AND PUBLIC MANAGERS' ASSOCIATION BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights that: WHEREAS, negotiations have proceeded between the Public Managers' Association, representing Division Heads of the City, and members of the City negotiating team, and said negotiations have resulted in a mutually acceptable Memorandum of Understanding for calendar years 1993 and 1994; WHEREAS, a copy of said Memorandum of Understanding will be made available for inspection at the Off ice of the City Manager and is made a part hereof by reference; NOW, THEREFORE, BE IT RESOLVED that the Memorandum of Understanding as negotiated, be and is hereby established as the salary and fringe benefit program for calendar years 1993 and 1994 for Public Managers' Association bargaining unit employees of the City. BE IT FURTHER RESOLVED that the Mayor and City Manager are hereby authorized to execute this agreement. Passed this ____ day of _____________ , 1992. Offered By: Seconded By: Roll Call: Donald J. Murzyn, Jr., Mayor Jo-Anne Student, Council Secretary CITY OF COLUMBIA HEIGHTS MEETING OF: October 26, 1992 AGENDA SECTION: ORDINANCES & RESOLUTIONS ORIGINATING DEPARTMENT: CITY MGR NO: 6 CITY MANAGER'S APPROVAL ITEM: CONSTITUTIONAL AMENDMENT TO CREATE BY: S. W. ANDERSON BY=sA�� NO: ,.f. PROPERTY TAXPAYERS' TRUST FUND DATE: 10/23/92 ,r r As requested by the City Council, attached is a resolution concerning a constitutional amendment to create a new property taxpayers' trust fund in Minnesota. RECOMMENDED MOTION: Move to waive the reading of the resolution, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 92-__ ; being a resolution concerning a constitutional amendment to create a new property taxpayers' trust fund in Minnesota. COUNCIL ACTION: 1, RESOLUTION NO. 92 - BEING A RESOLUTION CONCERNING A CONSTITUTIONAL AMENDMENT TO CREATEA NEW PROPERTY TAXPAYERS' TRUST FUND IN MINNESOT� ,\ �1,t,1r> ' "" .,, WHEREAS: The State of Minnesota enacted a 3% Statejales tax in1967 with the promise to voters that �ould bereturned to them in the form of lower property tax relieffor property taxpayers; and WHEREAS: In 1991, the Governor and State Legislature approved theaddition of a 1/2% increase in the State sales tax, raising it from 6% to 6 1/2% with two cents dedicated tofund the Local Government Trust Fund which was created tocontinue the State's commitment to local property taxrelief; and WHEREAS: In 1992, the Governor and State Legislature extended6 1/2% sales tax to local government purchases withpromise of continued property tax relief through Local Government Trust Fund; and thethe the WHEREAS: Each year local governments are forced to combatcontinued attempts to reduce the levels of State revenuededicated to local property relief through cuts inprograms such as Local Government Aid; and WHEREAS: It is anticipated that the State will face anotherdeficit in 1993, making cuts in local property taxprograms tempting ways to solve the State's problems; and budgetrelief budget WHEREAS: Governor Carlson has already publicly announced that hewill concentrate on eliminating local property tax reliefprograms during the upcoming legi�lative session; and WHEREAS: The League of Minnesota Cities and the Association ofMetropolitan Municipalities have taken positionssupporting a constitutional amendment dedicating twocents of each six and one half cents collected from theState sales tax to the Local Government Trust Fund ifsuch dedication cannot be assured statutorily. Resolution No. 92-page 2 NOW, THEREFORE BE IT RESOLVED, that the City of Columbia Heights calls upon the State Legislature to support a constitutional amendment dedicating two cents of each six and one half cents collected by the State sales tax to a new Property Taxpayers' Trust Fund, to guarantee continued property relief from the current Local Government Trust Fund BE IT FURTHER RESOLVED, that the City of Columbia Heights strongly urges the League of Minnesota Cities and the Association of Metropolitan Municipalities make one of their 1993 priorities support for a constitutional amendment dedicating two cents of each six and one half cents collected by the State sales tax to a new Property Taxpayers' Trust Fund. Passed this 26th day of October, 1992. Offered by: Seconded by: Roll call: Mayor Donald J. Murzyn, Jr. Jo-Anne Student, Council Secretary CITY OF COLUMBIA HEIGHTS APPLICATION FORM POR BOARD AND COMMISSION MEMBERSHIP 71-? DATE J0/!5/9� -=:':'.! _-- NAME £ /iUL&.,./..+. I. Fair/ 0-j ADDRESS 0&3 Karen La_.r,e,, Co!u1nbl1L 1-kigh� MAJ 554-�I HOME TELEPHONE NUMBER 7ff-/';;t. q WORK TELEPHONE NUMBER. ___ _ BOARD(S) OR COMMISSION(S) ON WHICH I WOULD UKE TO SERVE: (Indicate preference: 1, 2, 3, if more than one) Cable Communications Commission--- Charter Commission--- ___ Housing & Redevelopment Authority v' Human Services Commission Insurance Commission--- ___ Merit Commission ___ Library Board Traffic Commission --- Park & Recreation Commission--- ___ Planning & Zoning Commission Police & Fire Civil Service Commission --- ---Science, Technology & Energy Commission Qualifications for said position(s); include education and eipcricnce: B.11. in /flarke/2ng_, �+-v-£c.anomiF--S -f/ugshw:g &!� . Pcojuf pfrwn,6(} and aivq:n,:sfm.hpp st.JJ/s ../frauqA G:£":lap drill /lva«/wdl, · ., wUL, ,Ztr� Heacfau.a..r-1-us y;::1 tJoriAH-ti d>rp. Limitations as to availability of evenings or weekends for meetings. (Specify most desirable times for meetings.) llf2.ne, Signature �u d�� RETURN TO: Council Secretary Columbia Heights City Hall 590 40th A venue N.E. Columbia Heights, MN 55421 CITY OF COI:.UMBIA HET6-HTS MEETING OF: October 26. 1992 AGENDA SECTION: NEW BUSJNESS ORIGINATING DEPARTMENT: CITY MGR NO: 9 CITY MANAGER'S APPROVAL ITEM: AWARD OF BID -1993 SHARED RIDE BY: L. L. MAGEE BY.:5'�1vNO: 811.DA TE: 10/07 /92 1r>-"'., This item was tabled October 12, 1992, for more information. Qn A�gust 27, 1-992, b1d specifications were sent to seven cab companies. The notice for bids wa.s published ia the Columbia Heights 'FOCUS Newspaper the we.ek of Septemb�r 7, 19·92_ The bid opening was b;eld Thursd�y, October 1, 1.992 at 2 PM; bids were received f.ro:m two cab companies. The eompanies submitting bicl's were S�burban Taxi Corporation, our current provider, and Yellow Taxi Service Corporatio_n, a fox:mer provider. As you aTe <!.Ware, the bid specif-ications were' Written so contractors could bid a rate based on origina tipn/destination per passenger carried (Alternative A), or a flat hourly rate (AJternative B) or on both. �·idders we:re iniormeci that the City eouncil r.e'serves the right to select Alter-native A or Alternative B. Suburban Taxi Corporati9n submitted a bid on Alternati>Ve A, while Yellow Taxi submitted a bid on ALtern:ativ.e A and Alternative B. Attached are the bids submitted. Also attac;lted is a e9mparison of the current rates to the rates submitted under Alternative A. Regional TransirBoind staff ba_:ve indicat�d ,to me that they will be refommending to the Regipnal Transit Board funding foF 1993 Sha1ied Ride in th� amOullt of $83,'QOO. This is $707 less than the i992 f�ndi�g level, and $15,170 less than what was reque·sted for 1993. Other funding, l'eq11ests are pr-op0se,d to be cut up to 3% over i.992, and others ar:e proposed to be no m.o;re tha11-the 1992 funding level. The Regional Tra'Il'sit Boar:d wiU be a ·cting upon the 1993 fundin& requests at their meeting of November 16, 1992. In the applica:tihn to the Region-aJ Transit Hoard for fund-ing for 19-23, ,it was proje:c;ted that pm:ehase of service would cost $152,614. This amount wa� based on a 15% increase over the projected 1992 purchase of service cost. The 15% increase was anticipated to incorporate changes in costs and ridership. Based upon the projected fun,ding from the Regional Transit 13'oar.d for 1§93, accepting the low Alternative A bid or the Alternative B hid would keep us withfo our "adjusted" bu�get: Expenses Personnel Services Administrative Charges Operation Charges (Purchase of Service) Total Operating Expenses Funding SoUTces RTB Subsidy** 'Proposed Budget $7,362 $3,640 $152,614 $163,616 Adjusted Budget $1,362 $3,640 $127.331 • $138,333 'Projected Farebox Revenues {Cash Fares-$5,300/Tickets-$16, 720) Funding from Anoka County $98,170 $22,020 $43,426 ••• $83,000 $22,020 $33,313 Total Funding Sources $163,616 $138,333 •Based on estimated expenses and funding, maximum purchase of service expenses which could be incurred •• 60% of operating expenses •• • Requested, not yet secured COUNCIL ACTION: CITY OF COLUMBIA HEIGHTS MEETING OF: October 26� 1992 AGENDA SECTION: NEW BUSINESS ORIGINATING DEPARTMENT: CITY MGR NO: 9 CITY MANAGER'S APPROVAL ITEM: AWARD OF BID -1993 SHARED RIDE BY: L. L. MAGEE BY: NO: 8. A. DA TE: 10/07 /92 Page 2 Listed below are points to consider when reviewing the Alternative A and Alternative B proposal. Alternative A Limited control over costs, as it is difficult to control rides and ridership. Ride requests would not be refused. Alternative B Control over costs, as costs are based on hourly rates and number of cabs, and we determine number of cabs in service. Some ride requests may have to be refused. Based on costs and considerations of the two proposals, staff recommends the following. RECOMMENDED MOTIO.K: Move to award the Alternative A Bid for the Shared Ride Para-Transit Program c�mtraet to Yellow Taxi Service CQrpcnatioo for calenclar year 19,3, based upon low r:esponsible bid received; and, that the Mayor and City Manager �e authorized to enter into a contract for same subject to approval by the Regional Transit Board. ALTERNATE RECOMMENDED MOTION: Move to award the Alternative B bid for the Shared Ride Para-Transit Program contract to Yellow Taxi Service Corporation for calendar year 1993, based upon low responsible bid received; and, that the Mayor and City Manager be authorized to enter into a contract for same subject to approval by the Regional Transit Board. COUNCIL ACTION CITY OF COLUMBIA HEIGHTS PROPOSAL FOR SHARED RIDE PARA-TRANSIT SYSTEM ALTERNATIVE A The Honorable Mayor and Members of the City Council City of Columbia Heights 590 40th Avenue Northeast Columbia Heights, Minnesota 55421 Honorable Mayor and Members of the City Council: Date: 1 Q / 1 / 9 2 The undersigned, as bidder, hereby proposes and agrees to enter into a contract with the City of Columbia Heights for a Shared Ride Para-Transit System. I/We propose to supply all labor, equipment and all o ther particulars as specified in the City's plans and specifications based on the following per passenger rates: Origination -Destination Columbia Heights -Columbia Heights Columbia Heights -Hilltop Columbia Heights/Hilltop -St. Anthony Columbia Heights/Hilltop -Fridley Columbia Heights/Hilltop -Northtown Hilltop -Hilltop Hilltop -Columbia Heights St. Anthony -Columbia Heights/Hilltop Fridley -Fridley Fridley -Columbia Heights/Hilltop Fridley -St. Anthony Fridley -Northtown St. Anthony -Fridley Northtown -Columbia Heights/Hilltop Northtown -Fridley Northtown -St. Anthony Total Estimated Cost Per Month Total Estimated Cost Per Year Estimated Passengers Rate Per Passenger Carried 920 passengers x $ 2. 45 100 passengers x S -2...J..5. 150 passengers x S..2-.![l 340 passengers x S...A..1..Q 90 passengers x $ � 5 passengers x S..Ll.Q 90 passengers X $...2......3..5. 130 passengers x $...2....!Q 410 passengers x S..1......8.5. 320 passengers x $..!.1.Q 20 passengers x S 5 . 00 140 passengers x s--5........2..2 10 passengers x $� 70 passengers x S-6...5..0. 140 passengers x $� 5 passengers X $.i....,Q,Q Its___£f.Q /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried /passenger carried 3315 2nd Street North Address Minneapolis. Minnesota 55412 City /Zip Code (612)588-0000 Telephone Number = $2254.00 •S 235.00=$360.00 IC $1598.00 -= S 585. 00 = S 9 .50 -s 211.50 -= S 312. 00 = $1578.50 = $1504 .00 = S 100.00 = S 735. 00 = S 50.00 -=$455.00 = S 735 .00 -= S 35.00 = $10,757.50 X 12 Months -= $129,090.00 CITY OF COLUMBIA HEIGHTS PROPOSAL FOR SHARED RIDE PARA-TRANSIT SYSTEM ALTERNATIVE A The Honorable Mayor and Members of the City Council City of Columbia Heights 590 40th Avenue Northeast Columbia Heights, Minnesota 55421 Honorable Mayor and Members of the City Council: Date: 10-1-92 The undersigned, as bidder, hereby proposes and agrees to enter into a contract with the City of Columbia Heights for a Shared Ride Para-Transit System. I/We propose to supply all labor, equipment and all other particulars as specified in the City's plans and specifications based on the following per passenger rates: Origination -Destinatjop Columbia Heights -Columbia Heights Columbia Heights -Hilltop Columbia Heights/Hilltop -St. Anthony Columbia Heights/Hilltop -Fridley Columbia Heights/Hilltop -Northtown Hilltop -ijilltop Hilltop -Columbia Heights St. Anthony -Columbia Heights/Hilltop Fridley -Fridley Fridley -Columbia Heights/Hilltop Fridley -St. Anthony Fridley -Northtown St. Anthony -Fridley Northtown -Columbia Heights/Hilltop Northtown -Fridley Northtown -St. Anthony Total Estimated Cost Per Month Total Estimated Cost Per Year \. Estimated fassepgeu Rille fer fassenge r �1rried 920 passengers s S 2 • 35 /passenger carried 100 passengers s S 2. 35 /passenger carried 150 passengers s S 2. 50 /passenger carried 340 passengers s S 4.20 /passenger carried90 passengers s S 6.10 /passenger carried 5 passengers s S 2.32 /passenger carried 90 passengers s $ 2.3!2 /passenger carried 130 passengers s S 2.!20 /passenger carried 410 passengers s S 2,20 /passenger carried320 passengers s S 4.20 /passenger carried20 passengers s S 4.20 /passenger carried 140 passengers s S 4.75 /passenger carried10 passengers s S 4.50 /passenger carried 70 passengers s S 6.70 /passenger carried 140 passengers s S 4.75 /passenger carried 5 passengers s S 7.00 /passenger carried .. $ 2,162.00 .., S t35.ClD =$ '3 75.CllJ =S 1 1 530.00 .. s 603.00 .. s 1 J. 75 .. $ 211.50 .. $ 325.00 -= s 1,025.00 =S 1,440.00 =S 90.00 =S 665.00 "" s ll5.00 -=S 469.00 .. s 665.00 =S 35.00 -=S 9.887.25 X 12 Months -s 118,647.00 YELLOW TAXI SERVICE CORP Nam/Jompany (Bidder) By ' -�:..7Y.-.:>' /; &:·_; .6jgnl\ture � ./ /' -Its I . ·-_.. . ,·. t � 500 East 36th St • Address Mpls, MN. 55408 City/Zip Code 824-llOOO Telephone Number -;, 1 £..._-:{ <".,, CITY OF COLUMBIA HEIGHTS PROPOSAL FOR SHARED RIDE PARA-TRANSIT SYSTEM ALTERNATIVE B The Honorable Mayor and Members of the City Council City of Columbia Heights 590 40th Avenue Northeast Columbia Height&, Minneaota 554 21 Honorable Mayor and Members of the City Council: Date: 10-·:-92 The undersigned, u bidder, hereby proposes and agrees to enter into a contract with the City of Columbia Heights for a Shared Ride Para-Transit System. I/We propose to 1upply all labor, equipment and all other particulars as specified in the City's plans and specifications based on the following hourly rates per cab in service: Estjmared Hours• f,y 12,469 hours per year :a: S /; -/hour = S ,,-, .. u.t):;--1 .---' 7, (; .,:, Total Estimated Cost Per Year •Estimated hours based on the following: Service Hours Monday-Friday Saturday & Sunday 6 AM· 7 AM 7 AM· 8 AM 8AM -9AM 8 AM -9AM 9 AM· 10AM 9AM -lOAM 10 AM -11 AM 10AM -11 AM 11 AM· Noon 11 AM· Noon Noon· 1 PM Noon -1 PM 1 PM· 2 PM 1 PM -2 PM 2 PM· 3 PM 2 PM -3 PM 3 PM -4 PM 3 PM· 4 PM 4 PM -S PM 4 PM -S PM S PM -6 PM S PM -6 PM 6 PM -7 PM --- 7 PM -8 PM --. (261 weekdays/S2 Saturdays/52 Sundays) Yebicle Reguirements Monday-Friday Saturday 1 2 3 1 3 2 4 3 4 3 5 3 4 3 4 2 4 2 3 3 2 2 1 1 YELLOW TAXI SERVICE CORP Its Vice Pres. soo E. 36th st. Address Mpls, MN. 55408 City/Zip Code 824-4000 Telephone Number � 1 1 1 1 1 1 1 1 1 1 i) Originalion-Destioat io n Columbia Heights -Columbia Heights Columbia Heights -Hilltop Columbia Heights/Hilltop -St. Anthony Columbia Heights/Hilltop -Fridley Columbia Heights/Hilltop -Northtown Hilltop -Hilltop Hilltop -Columbia Heights St. Anthony -Columbia Heights/Hilltop Fridley -Fridley Fridley -Columbia Heights/Hilltop Fridley -St. Anthony Fridley -Northtown St. Anthony -Fridley Northtown -Columbia Heights/Hilltop Northtown -Fridley Northtown -St. Anthony 100792 LLM/bj Estimated Passeoa;ers 920 100 150 340 90 5 90 130 410 320 20 140 10 70 140 5 Suburban Yellow Taxi Taxi 1992 1993 1993 passengers x $2.50 $2.45 2.35/passenger carried passengers x $2.35 $2.35 2.35/passenger carried passengers x $2.40 $2.40 2.50/passenger carried passengers x $4. 75 $4.70 4.50/passenger carried passengers x $6.55 $6.50 6. 70/passenger carried passengers x $1.90 $1.90 2.35/passeoger carried passengers x $2.35 $2.35 2.35/passenger carried passengers x $2.40 $2.40 2.50/passenger carried passengers x $3.85 $3.85 2.50/passenger carried passengers x $4. 75 $4.70 4.50/passenger carried passengers x $5.05 $5.00 4.50/passenger carried passengers x $5.25 $5.25 4. 75/passeoger carried passengers x $5.05 $5.00 4.50/passenger carried passengers x $6.55 $6.50 6. 70/passenger carried passengers x $5.25 $5.25 4. 75/passenger carried passengers x $7.10 $7.00 7.00/passenger carried Total Estimated Cost Per Month Total Estimated Cost Per Year Suburban Yellow Taxi Taxi 122£ 122.J 19.2.J = $2300.00 $2254.00 2162.00 = 235.00 235.00 235.00 = 360.00 360.00 375.00 = 1615.00 1598.00 1530.00 = 589.50 585.00 603.00 = 9.50 9.50 11.75 = 211.50 211.50 211.50 = 312.00 312.00 325.00 = 1578.50 1578.50 1025.00 = 1520.00 1504.00 1440.00 = 101.00 100.00 90.00 = 735.00 735.00 665.00 = 50.50 50.00 45.00 = 458.50 455.00 469.00 = 735.00 735.00 665.00 = 35.50 35.00 35.00 = $10,846.50 $10,757.50 $9,887.25 X 12 Months X 12 Months X 12 Months = $130,158.00 $129,090.00 $118,647.00 CJTY OF COLUMBIA HEIGHTS MEETING OF: October 26, 1992 AGENDA SECTION: NEW BUSINESS NO: 9 ORIGINATING DEPARTMENT: CITY MANAGER'S CITY MGR APPROVAL ITEM: RELIGIOUS ACCESS CHANNEL NO: q, A, ·BY: L. L. MAGEE DA TE: 10/20/92 BY�w �>--1 �.,, Attached is a letter received from the cable company, announcing the addition of new services and changes to current services. Such changes will necessitate a channel realignment on November 18. In order to provide a channel line up that is consistent in each area, the company is requesting to move the ETWN/Inspirational/Rel igious Access Channel from its current location of channel 57 to channel 56.Changes to access channel locations must be approved by the City Council. At the Cable Communications Com.mission meeting of October 15, the commission made an info_rmal recommendation to the City Counc.il to approve the change in the location of the Religious Access channel. (It was an informal recommendation as we did not .have a quorum.) RECOMMENDED MOTION: Move to approve the request of Cable TV North Central to move the Religious Access Channel from channel 57 to channel 56, effective November 18, 1992. COUNCIL ACTION: I North Central Cable Communications Corporation•9.34 Woodhill Drive•Roseville. MN 5511.3•(612) 48.3-.32.3.3 October 8, 1992 Mr. Stuart Anderson, City Manager City of Columbia Heights 590 4oth Avenue NE Columbia Heights, MN 55421 Dear Stuart: 00 f'2 � fi1 1·1 W7 r�lE; (.!; ls u \:./ l; - OCT r, 1SS2 r//\; '.' ..: r;·\ •• ,: f ( • I : t • l...:,'_j Cl;\/ oc:-:· .-,·: ; ·· .. _:·,·-�· 1 T r v ... , , __ . r, ...... , 1 , ._, Cable TV North Central is pleased to announce the addition of some new services for the subscribers In your area. We would like to take this opportunity to notffy you of these additions and some necessary changes. On October 23, we will launch the SCI-Fl Channel on the channel previously occupied by The Monitor Channel. The SCI-Fl Channel will be a welcome addition, and Joins one of the most complete cable programming line ups available anywhere. On November 18, we will Introduce HBO II and Showtime II. These exciting new multiplex services have been the focus of many articles you may have read In the trade press. We believe these services will reinforce and enhance th• premium services, providing subscribers to HBO and Showtime, more value for their money. For those who subscribe to HBO, the multiplex service (HBO II), is added at no additional charge. Customers who subscribe to both HBO and Showtime, will receive HBO II and Showtime II at no addlllonal charge (4 channels for the price of 2). In order to make room for these new services, we will be merging much of the information currently on Showcase, with KABL. In order to provide a channel line up that is con sistent in each service area, we would like to make a minor move of ETWN/INSPIRATIONAL/RELIGIOUS ACCESS from its current location on channel 57 to channel 56. We need your permission to do so. As we wish to notlfy our subscribers of the changes as soon as possible, it is requested that this matter be addressed at the October 15 Cable Commission meeting •. You will recall that In 1990, we developed Basic, Limited and Preferred service levels. When a subscriber chose Basic or Basic and Limited services, additional traps needed to be installed to prevent the unauthorized reception of those channels which were not part of the total package. However, interest in Umited service has been minimal. With security problems and th&1expense of the numerous traps, we have decided to eliminate the Limited tier effective February 1, 1993. Currently, there are 9 subscribers who subscribe to Basic and Limited in your franchise area. We will •grandfather' the rates of those 9 subscribers Ur./Anderson October 8, 1992 Page Two at the then current rate for Basic and Limited, totalling $22. 1 O, but will provide them with what is now full Basic/Umited/Prefe"ed services until such time as the next rate adjustment occurs. As of February 1, 1993, the two service levels available to subscribers will be Basic only at $8. 15 or Basic and Preferred, totalling $24.40 ($8. 15 for Basic and S16.25 for Preferred). All of these changes will necessitate a channel realignment on November 18 as well. Our subscribers have already begun to receive notification of the realignment as part of their monthly billing statements. In addition, they will receive a separate mailpieca which advises them of the rate adjustment (of which we previously advised you), the channel realignment and the new services that we are offering. To make the transition as smooth as possible, we will follow that mailing with another, including a new channel /lne up card and remote control stickers. We are pleased to be able to offer our subscribers the greatest variety of programming possible. Our subscribers have over 60 channels available to them, while the industry average is only 24 channels. We are extremely proud of our quality programming, our technical service and our customer service. We believe we are offering our subscribers the bes t value for their entertainment dollars. As was mentioned in a previous letter from Kevin Griffin, we are looking forward to 1993. With the new ownership, we plan to offer new programming services, enhanced customer service and improved techni cal service to our valued subscribers. We always welcome your com ments. Please feel free to share your thoughts with us at any time. Si::4,��- Ka��}:::nelly-Cohen Director of Public Affairs KDC/sn cc: Dave Szurek, Chairman Tom Creighton, Esq. Kevin Griffin Lee Sheehy ,; � CCRRE.""IT LINE UP 0 l.:NMSION 1 E! 2 .f..'TCA 3 HEADLINE NEWS 4 wcco 5 KSTP 6 REGIONAL CHANNEL 7 A&E 8 l..IFEilME 9 KMSP 10 DISCOVERY 11 KARE 12 wrns 13 WGN 14 FAMILY CHANNEL 15 MIDWF.ST SPORTS CHANNEL 16 GOVERNMENT ACCESS 17 IGCI 18 ESPN 19 1NT 20 AMC 21 lJSA n CNN .,� -.J KLGT 24 COURTlV 25 COMEDY CHANNEL 26 CNBC 27 C-SPAN 28 C-SPAN II 29 KITN 30 QVC 31 TifE LEARNlNG CHANNEUBRA VO �.,.,_NICKELODEON 33 PUBLIC ACCESS 34 MIV 35 COUNTRY MUSIC 36 IBE NASHVIUE NEIWORK 37 VH-1 38 WCCO WEATIIER 39 IBE WEATIIER CHANNEL 40 SHOWTIME 41 IBE MOVIE CHANNEL 42 DISNEY 43 CINEMAX 44 HBO 45 PRIME SPORTS 46 CABLE PLUS PREVIEW 47 PPV 47 • VIEWER'S CHOICE 48 PPV 48 • REQUEST I 49 PPV 49 -REQ UEST II/SPICE 50 PREVlJEGUIDE 51 EDUCATIONAL ACCESS 52 KABL 53 LIBRARY ACCESS 54 COMMUNITY BULLETIN BOARD 55 RESERVED 56 SHOWCASE 57 EW1N/INSPJ¥TIONAL 58 IBE TRAVEL CHANNEL 59 NOSTALGIA 60 BET 71 NEW LINE UP EFFECTIVE 11/18,92 UNMSION E! KTCA CNN• wcco KSTP REGIONAL CHANNEL ESPN• nrr KMSP USA• KARE WI'BS WG N FAMILY CHANNEL A&E• GOVERNMENT ACCESS KTCI MIDWEST SPORTS CHANNEL• PRIME SPORTS• AMC COURTlV• COMEDY CHANNEL• Kl.GT LIFEnME· DISCOVERY• CNBC C-SPAN C-SPAN II KI1N HFADLINE NEWS• 1HE LF.ARNING CHANNEI.JBRA VO NICKELODEON PUBUC ACCESS MIV COUNTRY MUSIC 1HE NASHVIUE NEIWORK VH-1 WCCO WEATIIER 1HE WEATIIER CHANNEL SHOWITME SHOWl'IME n• DISNEY CINEMAX HBO HBOW CABLE PLUS PREVIEW PPV 47 -VIEWER'S CHOICE PPV 48 -REQUEST I PPV 49 -REQUEST II/SPICE 1HE MOVIE CHANNEL• EDUCATIONAL ACCESS KABL LIBRARY ACCESS COMMUNITY BULLEI1N BOARD SCI-Fl• EWIN/INSPIRATIONAL• BET- 1HE TRAVEL CHANNEL NOSTALGIA PREVUEGUIDE- QVC• CITY COUNCIL LETTER Meeting of: 10/26/92 AGENDA SECTION: NEW BUSINESS ORIGINATING DEPARTMENT: CITY NO. 9 PUBLIC WORKS MANAGER M.Winson#;J BY·fJt � ITEM: AWARD OF BID FOR PARK BUILDING BY: NO. ACCESSIBILITY IMPROVEMENT DATE: 10/19/92 DAT . -,.0"' '1---PROJECT 9./3. 10' Council rejected the initial bicis for this project on September 28, 1992·. At the direction of the City Council, staff revised the plans and specifications to award a minimum of four projects (McKenna Park, Huset Park, Prestemon Park and Ma·thairePark) with award of any of th� remaining five projects (Gauvitte Park, SouthwestPark, Ostrander Park, Silver Lake Beach and Keyes Park) at the option of the CityCouncil. Plans and specifications were provided to 7 vendors. Three bids werereceived for the opening on October 15 at 11:00 A.M. A total of $42,928 in CDBG money was budgeted for this project. The low bid for the fo�r projects was $35,218. Staff recommends award of these four projects. The building at Silver Lake Beach was constructed with LAWCON grant money. The City was ·notified by The Minnesota Department of Trade and Economic Development that the building must be made handicap accessible. The low bid to make the modifications at Silver Lake Beach is $9,048.00. This would require the Council to contribute an additional $1,338.00 from the undesignated General Fund. RECOMMENDED MOTION: Move to award the Park Building Accessibility Improvement Project for McKenna Park, Huset Park, Prestemon Park and Mathaire Park to KMBuilding Company, Inc. of Minneapolis, 'Minnesota, as the lowest qualified responsible bidder in the amount of $35,218.00; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. ALTERNATE RECOMMENDED MOTION: Move to award the Park Building Accessibility Improvement Project for McKenna ,Park, Huset Park, Prestemon Park, Mathaire Park and Silver Lake Beach to KM Building Company, Inc. of Minneapolis, Minnesota, in the amount of $44,266.00; and, furthermore, to autherize the Mayor and City Manager to enter into an agreement for the same. Move to transfer $1,338.00 from the undesignated General Fund to the Park Building Accessibility Improvement Project. MAW:jb 92-588 COUNCIL ACTION: BID TABULATION PARK BUILDING ACCESSIBILITY IMPROVEMENTS PROJECTS 9211, 9213, 9215, AND 9220 9212, 9214, 9216, 9218, AND 9219 No. Description Quant. Unit 1 Project 9211 -McKenna Park 1 LS. 2 Project 9213 -Huset Park 1 LS. 3 Project 9215 -Prestemon Park 1 LS. 4 Project 9220 -Mathaire Park 1 LS. SUBTOTAL BID FOR 4 PROJECTS 5 Project 9212 -Gauvitte Park 1 LS. 6 Project 9214 -Southwest Park 1 LS. 7 Project 9216 -Ostrander Park 1 LS. 8 Project 9218 -Silver t..ake Beach 1 LS. 9 Project 9219 -Keyes Park 1 LS. TOTAL BID FOR ALL 9 PROJECTS ENG. EST Total $7,000.00 $5,000.00 $1,500.00 $5,000.00 --------·--------·--- - $18,500.00 $7,000.00 $1,000.00 $6,000.00 $5,000.00 $5,000.00 ---- $42,500.00 KM BUILDING Total $13,516.00 $9,744.00 $2,075.00 $9,883.00 ----------------------- $35,218.00 $12,231.00 $2,852.00 $10,587.00 $9,048.00 $10,037.00 ------ $79,973.00 = PAVEN PARKOS Total Total $13,860.00 $11,700.00 $9,000.00 $15,500.00 $2,700.00 $3,500.00 $10,800.00 $10,000.00 ----------·----------------------------------- $36,360.00 $40,700.00 $11,700.00 $11,700.00 $1,980.00 $1,900.00 $10,800.00 $10,800.00 $9,270.00 $9,200.00 $10,800.00 $10,400.00 ============= ============= $80,910.00 $84,700.00 PROPOSAL CITY OF COLUMBIA HEIGHTS PARK BUILDING ACCESSIBILITY IMPROVEMENTS MUNICIPAL PROJECTS 9211, 92i 3, 92i 5, AND 9220 92 i 2, 9214, 92i 6, 92i 8, AND 9219 OCTOBER 5, 1992 BID OPENING OCTOBER 15, 1992; 11 :00 A.M. Bidders: The undersigned, as bidder, hereby proposes and agrees to enter into a Contract on the form attached hereto with the City of Columbia Heights, Minnesota, to supply all labor (including payment of prevailing wages as required under Minnesota Statutes 177.41 to 177.44), materials and equi pment necessary for the completion of the i 992 Park Building Accessibility Improvements within the City of Columbia Heights, all in accordance with the Plans and Specifications prepared by the City Engineer, City of Columbia Heights, Minne sota, and in strict accordance therewith, tor the following sum: No. Description Quant. i Project 9211 -McKenna Park 1 2 Project 9213 -Huset Park 1 3 Project 9215 -Presternon Park i 4 Project 9220 -Mathaire Park 1 SUBTOTAL BID FOR 4 PROJECTS 5 Project 9212 -Gauvitte Park 1 6 Project 9214 -Southwest Park 1 7 Project 9216 -Ostrander Park i 8 Project 9218 -Silver Lake Beach i 9 Project 9219 -Keyes Park i TOTAL BID FOR ALL 9 PROJECTS Unit L.S. L.S. L.S. L.S. L.S. L.$. L.S. L.S. L.S. $ $ $ $ Total i�s\�,- q 7 l.\.-U.,- 7-D J ":::, ,-°' �2:i�.-- $ 3,S,-z....,r;._, $ \ -z._ -z_ � \ - $ -z_.�.;;7-i $ }\J 53:::z.-$ °\ C 4-�.- $ \Oo?:::i,_7- $ \ � • °>J-:; .-7 It is understood that the Owner may accept or reject any Proposal. PROPOSAL FORM PAGE2 OF 3 A certified check·or bidder's bond in the amount of: i='/ !/& � C--�Dollars ($ S � drawn to the order of the City of Columbia Heights, is attached hereto. If this proposal is accepted and KM Building Company, Inc. refuses, fails, or neglects to execute the Contract and furnish a satisfactory surety bond within ten (10) days of the date of acceptance of the Proposal, it is understood and agreed that F?::G::LO L?'-24 L � Dollars($ So/<:::> ) -said amount being the same as bid security abovementioned -will be liquidated damages occati oned by such refusal, failure, or neglect. Thereupon said City of Columbia Heights, shall realize upon said bid security and use the proceeds in the payment of said damages. Said certified check will be promptly returned upon completion of the contract documents. This proposal is submitted after careful study of the Specifications and from a personal knowledge of the conditions at the site, which knowledge was obtained from our own sources of information and not from any official or employee of the City. It is understood and agreed that this Proposal cannot be withdrawn within sixty (60) days after scheduled time for receipt of bids. The following is a schedule for completion of the work. 1.Time required after Contract Documents are completed to start work:-� days 2.Time required form commencement to completion (working days only; does not include Saturdays and Sundays): 75 days. KM Building Company, Inc. Legal name of Person, Firm or Corporation-- � l�s�k:::'� --� (Signature) By Richard Hollatz (Print or type name) Address 1620 Central Ave. NE Minneapolis, MN 55413 781-2062 Phone_....:....::.:.:_:..:....:-=------------ Legal Residence _s_a_m_e_a_s_a_b_o_v_e ______ _ 10/15/92 Date PROPOSAL FORM PAGE 3 OF 3 LIST OF SUBCON TRACTORS Bidders must list subcontractors tentatively scheduled to work on this project. All changes must be submitted to the City Engineer. BIDDER'S REFERENCES NAME TELEPHONE NO. 1.Harris Mechanical 646-2911 2. Mulcahy Drywall 770-5250 3.Brock White 647-0123 CITY COUNCIL LETTER AGENDA SECTION: NEW BUSINESS NO. 9 ITEM: AWARD OF BID FOR MUNICIPAL NO. C SERVICE CENTER STORAGE YARDq. , LIGHTING Meeting of: 10/26/92 ORIGINATING DEPARTMENT: CITY PUBLIC WORKS MANAGER BY·t,Jt � BY: M. Winson /t(µDATE: 10/19/92 DAT : }b' V[O' Council authorized staff to seek bids for lighting the MSC storage yard on August 24, 1992. Plans and specifications were provided to 6 vendors. One bid was received for the opening on October 16 at 9:00 A.M. The proposed work is very straight forward. All work is above grade, therefore no frost charges are involved. Contractors were given until December 31 to complete the work. The budgeted amount for this project was $10,000.00. Even though only one bid was received, staff recommends awarding the project. If Council decides to reject bids, staff recommends rebudgeting the funds for 1993. Staff checked using NSP services to provide the lighting upgrade. NSP will not install lights on privately owned poles. The cost to do the improvement would exceed the budgeted amount if the existing poles are not used. RECOMMENDED MOTION: Move to award the bid for the Municipal Service Center Storage Yard Lighting to Heights Electric Company of Columbia Heights, Minnesota, as the lowest qualified responsible bidder in the amount of $7,071.00; and, furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. MAW: jb 92-589 COUNCIL ACTION: ;II CAPITAL EQUIPMENT PURCHASE JUSTIFICATION 1.Item to purchase:Storage 2.New; Building Municipal Service Center Lighting Yard and or Replace: fuel pumps 3.If replace, present equipment data: 3A. Make: Unknown 3B. Year purchased: 1973 ±. 3C. Purchased new? X or Used? 3D. Original Cost: $ Unknown 3E. Estimated hours/days used per year:Used during darkness -lights are on 3F. Engine hours used per year if known: 3G. Repair history: photocell N/A Labor cost past 36 months: No information is available Parts cost past 36 months: No information is available Number of days down time past 36 months: No information is available month 3H. Operating cost per Jiid (or other unit of measure): ___,28.00 4.Proposed new equipment to replace item described in #3 above: 4A. Estimated cost of item: $ 7,000 to reolace lights; $3,000 to add new lights 4B. Budgeted money: $ __ 10 ........ 0_0_0 ________________________ _ 4C. Where is the money budgeted? Department name: Water Fund $5,000.00� Sewer Fund $51000.00 Department line item: 601-49449-5130 602-49499-5130month 4D. Estimated operating cost per ili�l(or other unit of measure): · $ __ 8_.0�0�---- 4E. ·Features• on new unit that are not on present equipment: a.Better light distribution b. c. d. e. 4F. What are the advantages or cost savinngs of the new features: More� light for same rost Croare energy e£fi ci ent fixtur'-i.) ------· TENTATIVE AWARD October 26, i992 DID BIDDER SEC. Heights Electric, Inc, 5% 704 40th Ave. N, E,B7-d Col. Hghts, MN 55421 Bond . CITY OF COL�MBIA IIEIGIITS, MINNESOTA DID TABULATION MSC STORAGE YARD LIGHTING 1'OTAL DID TIME TO START 5 weeks after $7,071 .oo shop drawing approval DID OPEHINCJt Oct. ·16, 1992 -9:00 A.M. TIHE · TO COMP. REMARKS 2 weeks after fixture deliver) .--- ('' \.._ ·::. �-! : . ' :,·�� TOTAL CITY OF COLUMBIA HEIGHTS MUNICIPAL STORAGE SERVICE CENTER YARD LIGHTING PROPOSAL $ 7,071 .oo We the undersigned agree to furnish the necessary permits, labor, materials and equipment to comp lete the work in accordance with the general specifications and plans. STARTING DATE COMPLETION DATE BID OPENING .-·. 5 weeks after shop drawing approva�. 2 weeks after fixture delivery. ,. 9:00 A�M. OCTOBER�16, 1992 -. .- FACSIMILE COPIES WILL NOT BE ACCEPTED AS •' .... r , ..... . '· : ... • -·Date ·"'. \ . \ • t -�:.: . ---.:· .,.:., ·-=·.;. -o�tober ·16;,1992 ·-!' ·! .. ' _, .::' � �1 . .. .. ··--........ ' .. ... :r �-.... . .. , �-4 ·'ii'\,,··-."':·r·:· --� ___ .;:'"�Signatur�-:� �-f <, -··" ·.:�;·,:.��t: }.�f·· -��;�.... -... --,. �. -:. "';:; .. -. .:,, . � ·� ... ..: .. . : .. )/t'�·;-�? :::>· ·J!::t�·.-• ... �-s.-,.;,,�,��1' ,.._ ��-'•"<;.· ,. _: :·. I,,,:,:[:'�� ,:;/.f.;:_,.:ir:��: .. ;·--�--:- ,; ,· • ; ..... :;.: i. .:. -�-� • _ _,;-_ .. � �":�';�_ CITY COUNCIL LETTER AGENDA SECTION: NEW BUSINESS NO. 9 ITEM: AUTHORIZATION TO ATTEND FLEET NO. MAINTENANCE ADVANCED TRAINING 'i.D. OUT-OF-TOWN Meeting of: 10/26/92 ORIGINATING DEPARTMENT: CITY PUBLIC WORKS MANAG� BY:� qq;r BY: M. Winson '4�DATE: 10/19/92 DATE: J(Yt _, In 1989, the Central Garage started using a Fleet Maintenance Program to schedule vehicle maintenance and repair, generate fuel and oil consumption reports, track inventory, provide vehicle· history and g.enerate reports used in charging vehicle costs to the various departments. Staff implemented the basic components of the program without formal training. Training is being held by the company that wr0te the program that would allo:w staff to fully utilize the program's capabilities and to improve their understanding of the program and its current updates. Torn Hosch and Barb Sandberg are requesting to attend the 3-day course in Lakeland, Florida, November 14 through November 18. Tom is responsible for the day-to-day operation of the Garage and training other personnel in inputting data. Barb is responsible for generating vehicle and garage expense reports to Finance and oth,er departments, the weekly PM work orders and coordinating the annual inventory. She is also responsible for the overall administration of the system. This training is budgeted in 701-49950-3105 and 701-49950-3320 line items of the 1992 budget. RECOMMENDED MOTION: Move to authorize the attendance of Tom Hosch and Barb Sandberg at the Fleet Maintenance Advanced Training course by HSB Reliability Technologies Corp. to be held November 14-18, in Lakeland, Florida. MAW: jb 92-591 COUNCIL ACTION: cm r:, COLIJMBIJ B!IGBl'S ltrrBO:UZJ.TIOi IBQtraST POI COBFEUJC§, VOBl:SBOPS, SCBOOLS 1HD SEMilllS Thia completed torm mat be presented to tbe Cit7 Manager b7 the Vednuda7 pr.ceding the regular Council Meet� tor approval ot attendance. DlT! OF IEQtJEST: lo [12-/'1 2--, r..JJV/fllc cL? z;e 1/-r ;..J / AJ � ?9'f� c« �) "?cl �f4� 3/oS-� �,s-r.-1( Z-· 1CCOONT I: -?t?I 'f'l'i1S?J 3':k? �) ESTIMATED COST: _ BtJDG::I'ED FOR: -A. YES HO SOFFICIEN'l' FONDS REMAINING: X YES BO 11.'iE OF IHDIVID01LS ATTENDIHG: � tfo�al' , WEIN: t«Jt� 1¥.r#�« A/ de/, It? WHERE: Lr/1-�<f: M-,A.,1� p�e, ,e I £)A 8A-�i3 511-/JDB�b- PURPOSE OF EVENT: LP/ttNtA.16 t:.'N U S-e '11/.= r�FPT /Wt/-rµ 72Tl,)/!A.1� � ,f'u T?P?e �-()�_ .. BOW WILL THIS ACTIVITY BELP YOO lHO/OR ?OtJR DEPARTMENT? THE tlf:11,IJ �� &, 14/fL .. k &1-rcg &�r �/'uT75'7e e-Pne.-V1 Pfli P£� ti:P.e t/E PE,ii!,t�LJ..R&t:Jff:S1 IV/� &? ll£/'6"CT.s. eez&zt/G -rp· <1«,e_ m,tav �e q,4 r'/J? PWSZ ATTACH lRI BBOCBUllES OR INP'OBMATIOI HEI.lTED TO THIS IVD'l' • SIGNATURES: � o·' ·)�ARTMENT BEAD �= . DIVISIOB IIE1D � �� cm MAH1GEB·' I ti/ t z.-/9 z.;.. J)lTI � ; / O{ t� ( {2...... J>lTI /(i.-1.s-1·��TE IF ttEQOillD, APPROVAL m cm COO!JCIL: -------------J)lTI Upon approval b7 the City Manager, or c1t7 Council (it' applicable), a oop7 or thu torm Vill be submitted to the Finance Department and appropriate l>iTiaion Bead. Thia t'orm 1a Det a registration torm or a request tor pre-regiatration acniu. 07 /0�/86/h 1 ) ADVANCED CLASS Goals The purpose in providing advanced training is: •to increase the staffs proficiency level by promoting confident use of the system,and •to maximize the return on investment of the maintenance system throughfull utilization. Wlto Sltould AHend This course is designed for maintenance managers, supervisors and end-users of the maintenance management system. The attendees should be those individuals responsible for: •Maintenance operations and information analysis;•Day-to-day operation of the computerized maintenance management system; or •The entire work order process. The course offers a good blend of lectures and hands-on exercises to insure that each participant will effectively understand the following: •Identification and correction of error messages •Refinement of end-of-period operations; importance in main taining data accuracy •Data flows and updates during complex processing(PM Schedules, Issues, Receipts, etc.) •Utilization of Menu Maintenance and other utility functions•Correction of data entry errors Certificates will be provided upon completion of class. Duration and 1.ocotlon 3Days Classes are held at our Training Institute in Lakeland, FL. Class times are: 9:00 AM -12:00 PM 1:00 PM -4:00PM Classes are limited to 12 people -maximum 3 people per company Cost $ 595.00 -1 Attendee $ 995.00 -2 Attendees $1,295.00 -3 Attendees Fees must be paid at the time of registration for class. If you cancel we will apply your payment to a future HSB Reliability Technologies Carp. class. HSB Reliability Technologies Carp. reserves the right to cancel a class if the minimum attendance requirement is not met. If HSB Reliability Technologies Corp. cancels a class, your fee will be refunded, but we are not liable for any other expenses you may have incurred. CITY COUNCIL LETTER MEETING OF: OCTOBER 26_., 1992 AGENDA SECTION: NEW BUSINESS ORIGINATING DEPT.: CITY MANAGER NO: 9 FINANCE/LIQUOR APPROVAL ITEM: FURNACE AND AIR BY: WILLIAM ELRITE ��q_p� Swri-v_ci� NO: CONDITIONING CONDENSER REPLACEMENT, LIQUOR STORE DATE: 10/19/92 #3 o--y C/ £. I In mid-September it was discovered that the furnace at Liquor Store #3 was not working. Minnegasco was called under their service contract to check the furnace. They ascertained that the blower was worn out and, during their inspection, the air conditioning condenser on the roof went out. Neither of these items are covered under the Minnegasco contract. The furnace is approximately 25 years old and parts are no longer available. Five written quotes were received for the replacement of the furnace and the air conditioning condenser at Liquor Store #3. Three of these quotes gave the option of replacing the furnace separate from the air conditioning condenser. However, four of the vendors who submitted quotes indicated it would be significantly more expensive if the City replaced the furnace now and the air conditioning condenser later. The reason for this is that the cooling coils that are attached to the condenser are located in the furnace. Doing the job at two separate times would involve more labor and, if two different companies did it, we could run into problems if the company that installed the furnace did not install the cooling coils correctly within the furnace. Based on the above, Anderson Heating had the low quotation for the replacement of the furnace and the air conditioning condenser. His quote was $6,359. Attached herewith is a summary of the quotes received. Based on this, the City Council was polled by telephone on October 19, 1992. Four Council members voted in favor of having Anderson replace the furnace and air conditioning condenser. One was opposed to this. RECOMMENDED MOTION: Move to ratify the action of the City Manager to replace the furnace and the air conditioning condenser at Liquor Store #3 by Anderson Heating in the amount of $6,359.00 based on their low quotation. WE:al 9210201a COUNCIL ACTION: CITY OF COLUMBIA HEIGHTS MEETING OF: October 26. 1992 \ AGENDA SECTION: NEW BUSINESS ORIGINATING DEPARTMENT: CITY MGR NO: 9 CITY MANAGER'S APPROVAL ITEM: ESTABLISH PUBLIC HEARING TO CONSIDER BY: VAL DIETZ B��,_)}i NO: 'I.F. ALLEY LIGHTING DA TE: 10/21/92 ,,,,, ; This is a propos_al for midblock lighting in the area of the alley between the Pierce and Fillmore from the 4600 block to the 4700 block. The proposal is to have the City address the issue of installing up to two lights in the alleyway approximately 200' apart. This would be as per the Assista.nt City Engineer's recommendation. I have circulated a petition stating that I am a Police Officer in Columbia Heights and am primarily assigned to the areas or area in which the alleged problem is located. I have heard from several citizens in the area that there is a potential problem in the area of Fillmore and Pierce between 46th and 47th A venues. It does not appear that there is prQper lighting in the alleyway. The citizens and the Police Department feel if there were adequate lighting, it would aid us in attempting to prevent crime in the area and would also discourage loud parties that have been a problem there in the past. As I stated, the lighting-would be installed as per the Assistant City Engineer's order, and 1 had an estimated cost from the Assessing Department of approximately 19 cents per foot for the footage on the alleyway. I feel that the lighting would l>e well worth the cost and would make the residents feel much more comfortable. The letter I circulated included a tear off portion with an option to vote in favor or against the project and to sign their name at the bottom. This would indicate as to whether they were interested in having midblock lighting and were willing to pay for it in the alleyway. This letter was circulated to all the property owners in the area and I received a reply back from all property owners in the area . The consensus of all the property owners in the area was yes, they would like lighting in the alleyway and be willing to pay for it with the exception of properties owned by Audrey and Leland Stauch. They indicated they were not interested in midblock lighting because they would not be able to aff_ord the financial expense. I am submitting a copy of the letter that was circulated and a map indicating which residences were willing to have midblock alley lighting. As required by City Charter, a notice will be published in the official newspaper in the November 10th issue and the residents will be notified of the hearing. I would ask the Council establish a public hearing for formal consideration of this project. RECOMMENDED MOTION: Move to establish November 23, 1992, 7:00 PM, as a public hearing for consideration of alley lighting between Fillmore & Pierce, 46th to 47th A venues. COUNCIL ACTION: "' POLICE DEPARTMENT CITY OF COLUMBIA HEIGHTS Information (612) 782-2840 Investigations 782-2850 Fax Number 782-2842 DONALD J. MURZYN, JR. 559 Mill Street Northeast DAVID P. MAWHORTER Chief of Police 782-2845 Mayor Columbia Heights, MN 55421-3882 September 17, 1992 Re: Alleyway Pierce/Fillmore from 46th Avenue to 47th Avenue Midblock Lighting Request Dear Property Owners: My name is Val Dietz and I am a Neighborhood Police Officer in Columbia Heights. I am assigned primarily to the area in which your homes or rental property are located. I have heard from several citizens in the area that there is a potential problem in the area of Fillmore and Pierce Streets between 46th and 47th Avenue, as there does not appear to be proper lighting in the alleyway. The citizens and the Police Department feel if there were adequate lighting, it would aid us in attempting to prevent crime in the area and also discourage the loud parties that have been a problem there. I am proposing the installation of two mid-block lights in the alleyway approximately 300 feet apart. This would provide adequate lighting for the entire alleyway between 46th and 47th Avenues. The approximate cost of the lighting is 19 cents per year per foot for the frontage on the alleyway. I feel that the lighting would be well worth the cost and would make residents feel much more comfortable. At the bottom of this letter is a tear-off portion. I am asking you to check yes or no, sign your name, and mail it back in the envelope provided. If we receive adequate positive responses, this issue will be presented to the City Council for their consideration. ---- Sincerely, David P. Mawhorter Chief of Police -�--). _f) :e_6 �:, By: . X Val Dietz ,.__.. Neighborhood Police Officer Yes, I am interested in the proposed midblock lighting. No, I am not interested in the proposed midblock lighting. Signature ( ' .. . .,,. ' t ._...,._ ·�� I t---�-f -----..I_, ....... -------a---=;...:..aa-----t,.,_.._ ..... '--t -... F.l;&=-:d-�-b��-t--.__:a�-f W.�R��U;-------------�,.----�.:..�:,_ __________ _ ,€C-25 CITY COUNCIL LEITER MEETING OF: OCTOBER 26, 1992 AGENDA SECTION: NEW BUSINESS ORIGINATING DEPT.:CITY MANAGER NO:9 FINANCE APPROVAL ITEM: AUDIT PROPOSALS FOR 1992-1994 BY: WILLI�LRITE BY: <; Jr-i-;tv' NO: AUDIT vJ _J CJ. G. DATE: 10/21/92 I o-}' At the City Council work session on October 12, the council and staff reviewed a summary of the audit proposals. At that point the Council had two requests: that we request sample copies of management letters from all of the auditing firms; and that we contact Deloitte & Touche to get costs for the second and third year audits. Staff has done this. Attached herewith are copies of the management letters from Abdo Abdo & Eick (green attachment), Malloy, Karnowski, Radosevich & Co. (pink attachment), Deloitte & Touche (yellow attachment), Tautges, Redpath & Co. (blue attachment). The management letter from Tautges, Redpath & Co. is the most in-depth and gives the most information. The management letter from Deloitte & Touche gives a significant amount of information and concerns; it does not go into the same depth in detail and historical information as Tautges, Redpath & Co. The management letters from Abdo Abdo & Eick and Malloy, Karnowski, Radosevich & Co. are much lighter in content and value. Deloitte & Touche submitted a letter related to their audit fees for 1993 and 1994 stating that their fees would not increase by more than the lower of 3 1 /2% each year or the consumer price index. This rate of increase is comparable to the other firms' proposals. In their letter, they also cited an example of a circumstance where their fees would be in excess of their proposal. This example was if a key person in the Finance Department left and was unavailable during the audit. On October 13th, I contacted Cliff Hoffman of Deloitte & Touche to discuss the prices in their proposal. I expressed my concern that the prices to the City seemed significantly low in relationship to what they are charging other cities for auditing services. Mr. Hoffman stated that Robbinsdale is the closest comparable city to Columbia Heights that they audit. Robbinsdale does not have a separate HRA, but an EDA which is part of the city. The total cost to Robbinsdale for the city audit without typing is $19,000. The proposal from Deloitte & Touche to the City of Columbia Heights for the HRA and the City audit without typing is $17,500. Mr. Hoffman also indicated that if HRA was combined into the City audit as one audit there would be a significant savings to the City. He did not have an explanation as to why his proposal for the City of Columbia Heights audit was significantly less than what they are charging other cities. In summary, staff still has a concern about the proposal from Deloitte & Touche in the fact that their cost is very low compared to what they are charging other cities, and that they may attempt to increase the cost if the audit takes more time than they have estimated. Their fieldwork would start in April, and the audit would not be completed until late May. It should be noted that Deloitte & (Continued) COUNCIL ACTION: CITY COUNCIL LEITER MEETING OF: OCTOBER 26, 1992 AGENDA SECTION: NEW BUSINESS ORIGINATING DEPT.: CITY MANAGER N0:9 FINANCE APPROVAL ITEM: AUDIT PROPOSALS FOR 1992-1994 BY: WILLIAM ELRITE BY: NO: AUDIT q.G.DATE: 10/21/92 PAGE 2 Touche is the only firm that submitted a proposal without reviewing the City's accounting records and accounting structure. All of the other firms spent two or more hours in the City reviewing our accounting records and structure. With the exceptions of staffs concern related to the cost proposed by Deloitte & Touche, and the fact that the audit would start two months later than the other firms, staff feels that they would perform a good audit for the City. Deloitte & Touche also verbally indicated that they would prefer not to do the Fire Relief Association audits as this is not an area that they specialize in. If the City selects Deloitte & Touche for the City audit, we could select another firm to do the Relief Association audits, which would result in additional savings to the City. It is staffs recommendation to contract with Tautges, Redpath & Co. for the City audit for 1992 through 1994. Their proposed cost for City, HRA & Relief Association audits in 1992 is $1,254 higher than Deloitte & Touche, is comparable to what they are charging other cities, and their management letter was more in-depth. The following are three alternative motions based on staffs summary of the audit proposals, the discussion at the October 12th work session, and the additional information gathered and attached. One of the following motions should be adopted: ALTERNATIVE MOTION #1: Move to authorize the Mayor and City Manager to enter into an agreement with Tautges, Redpath & Co. to perform the City and Fire Relief Association audits for the years 1992 through 1994 based on their proposal of September 14, 1992. ALTERNATIVE MOTION #2: Move to authorize the Mayor and City Manager to enter into an agreement with Deloitte & Touche to perform the City and Fire Relief Association audits for the years 1992 through 1994. ALTERNATIVE MOTION #3: Move to authorize the Mayor and City Manager to enter into an agreement with Deloitte & Touche to perform the City audit for the years 1992 through 1994, and to enter into an agreement with Abdo Abdo & Eick to perform the Fire Relief Associations' audits for 1992. WE:al 9210211a COUNCIL ACTION: DATE: TO: FROM: CITY OF COLUMBIA HEIGHTS OCTOBER 8, 1992 STUART ANDERSON CITY MANAGER WILLIAM ELRITE LJ ffa FINANCE DIRECTOR RE: SUMMARY OF AUDIT PROPOSALS INTRODUCTIO� In reviewing the audit proposals, staff took several factors into consideration. This section briefly highlights and explains those factors. Experience with Similar-Sized Cities It is important that the auditing firm have experience with cities having a similar size and accounting structure to the City of Columbia Heights. For this purpose, a survey was taken of cities in the metropolitan area, and the Request for Proposals was only sent to auditing firms that audit two or more cities in the metropolitan area with a population in excess of 8,000. The criteria of using a population of 8,000 is low, but we had to go to that level to come up with seven auditing firms to send the proposal out to. If an auditing firm is not auditing cities of at least that size, it would indicate that their experience in municipal auditing may be limited. Limited experience may cause delays in completing the audit, require additional City staff time, and the final result could be a less comprehensive a-adit rcpon. Another factor that was considered in this area is how long the auditing firms have been with various cities. If an auditing firm has been with several cities for an extensive period of time, it is an indication that the cities are pleased with their service. Auditing Firm Staffing Level The staffing level that the auditing firm proposes to use on the audit and the number of years' experience of the staff is of vital imponance. These factors, again, ensure a higher quality audit, less City staff time, and is an indication of the turnover in the auditing finn. If the auditing firm is proposing to send out entry level auditors, the City can anticipate a lower level audit and the use of more City staff time in training the auditors. Another factor to consider is that if the auditing finn is proposing people who have been with their firm for several years, it indicates Memo to Stuan Anderson October 8, 1992 Page 2 that there will be continuity in the audit from one year to the next. Using the same auditing firm for several years is beneficial in that each subsequent year City staff time in the audit is greatly diminished. However, if the auditing firm is sending out new people each year, there is minimal reduction in staff time. GFOA Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers' Association Certificate of Achievement for Excellence in Financial Reporting is much more than just a plaque to hang on the wall. It is a very in-depth review of the City's financial repon, and has been in place for approximately founeen years. The program is run primarily on a volunteer basis. When the City submits the financial repon to GFOA, it is then reviewed by three outside reviewers. In this review process, there is a 50- page questionnaire that each reviewer has to complete regarding the financial repon. All of the reviewers in this program are volunteers, and each reviewer is expected to review twelve repons each year. If a CPA firm is panicipating in this program as a volunteer, it means two things: one, that they are committed to the improvement of governmental financial reporting by dedicating this amount of staff time; and two, this review process gives the auditor and/or outside reviewer a significant, in-depth knowledge of the variation in different repons. It helps to ensure that they are on top of all reponing requirements. Four of the five firms that the City received proposals from are reviewers in this program. Cost If cost were the only factor, I am sure the City could find some CPA firm to do the audit for about $5,000. However, if this were the case and if State statutes permitted it, the City would probably be better off to save the $5,000 and not have an audit at all. A recent example of embezzlement in the City of Hilltop helps to substantiate this theory. There is no auditing firm that will guarantee against embezzlement, nor will they guarantee that they will find it. However, having a highly qualified auditing firm doing a detailed audit greatly reduces the potential for embezzlement. First, staff is aware of the in-depth audit process and would be more reluctant to be involved in embezzlement. Secondly, an in-depth audit will discover embezzlement on a more timely basis. In the example of Hilltop, had they utilized a highly qualified auditing firm, it is almost certain that the embezzlement would have been discovered early on and not allowed to increase and progress over a period of several years. With this in mind, cost should be a factor, but only when all other relevant factors are considered. Minimum Audit Requirements The American Institute of Certified Public Accountants and State statutes set minimum auditing requirements. These are the basic requirements and guidelines for an audit. These requirements are exceeded in varying degrees by reputable auditing firms. The City cannot rely on these basic standards and the fact that it is a certified public accountant to ensure a quality audit process. Memo to Stuart Anderson October 8, 1992 Page 3 The requirements for an auditing firm must exceed these levels to ensure adequate internal controls and to safeguard the assets of the City. PROPOSALS RECEIVED The City received five responses to its Request for Proposals for Auditing Services. The first year fees ranged from a low of $22,000 to a high of $33,000. There were three firms in the middle with fees of approximately $27,000. Although the fee for auditing services is a significant factor, it is not the only factor to be considered when selecting an auditing firm. There are minimum standards that an auditing firm must meet in completing a City audit. If an auditing firm is selected based on cost only, the best the City can hope for is that these minimum standards will be met. Four of the firms the City received proposals from have a documented history of exceeding these minimum standards; however, their cost is also higher. To utilize a phrase from a recent Council meeting, we want to ensure that the City gets the biggest bang for its buck. This may not be accomplished by simply going with the lowest cost auditing finn. The City received proposals from Alxlo Alxlo & Eick, Tautges Redpath & Co., Malloy Karnowski Radosevich & Co., KPMG Peat Marwick, and Deloitte & Touche. The following is a summary of these proposals and staff's concerns related to them. Deloitte & Touche Deloitte & Touche submitted a proposal for only one year. Their fee for the City audit, including typing, is $14,500. The total fee for the Fire Relief and HRA is $26,500, including typing of all reports. This firm audits several major cities in the metropolitan area, including Blaine, Bloomington, Brooklyn Center, Brooklyn Park, Eagan, Minnetonka, Richfield, Robbinsdale, and the Metropolitan Airports Commission. All of these cities have the GFOA Certification of Achievement for Excellence in Financial Reponing. Another significant factor in favor of this firm is that they have been the auditor for several of these cities on a long-term basis, i.e. Bloomington and Brooklyn Park since the mid-70's, and Eagan, Minnetonka and Richfield since the mid-80's. This indicates that their service has been acceptable on a long-term basis. The proposal included a good audit plan and detailed out the steps that would be taken to accomplish the City audit. The negatives with this firm are that they only submitted a one-year proposal, and the fee in that proposal for the City seems very low compared to the other proposals. In addition to this, they are charging comparable cities approximately $10,000 more for an audit. Also, the number of hours they are going to put in on the City audit are very low. The total number of hours is 260, and 216 of these hours would be put in by staff people with less than five years auditing experience. The manager in charge of the audit has five years experience, which is very low for a manager. All of these factors could clearly indicate that they will come back with a significantly higher fee for the 1993 audit. If the City selects this firm, we should be prepared for a significant increase in 1993. Since their total audit fee for the City, Fire Relief Association and HRA is only $700 less than the next higher firm, they may not be the best overall selection for the City. Memo to Stuart Anderson October 8, 1992 Page 4 KPMG Peat Marwick The firm of Peat Marwick submitted an excellent proposal highlighting their background experience and laying out a good audit plan i.nmmaxy. Being a large, national CPA firm, Peat Marwick is very involved in governmental activities and the GFOA Certificate program. The manager who would be assigned to the City's audit has audit experience in several other cities and counties. Peat Marwick audits several major cities in the metropolitan area: Anoka. Coon Rapids, Edina, Hopkins, Maplewood, White Bear Lake and Plymouth. They have been the auditor for Anoka, Hopkins and Maplewood since the early 1980's. At least four of the cities they audit in the metropolitan area hold the GFOA Certificate for Achievement in Financial Reponing. They did not provide any information on the audit staff who would actually be performing the audit. This firm had the highest fee for auditing services. The fee for the City audit, including typing, is $20,500. The total fee, including HRA and Fire Relief Associations, is $33,000. Although they would be a good auditing firm, their fee is high. Abdo Abdo & Eick This firm submitted the lightest of all proposals. The firm's main office is in Mankato. They are doing audits primarily for several small rural Minnesota cities. They have expanded their services and opened an office in the metropolitan area. They list their most significant municipal engagements performed by their Minneapolis office as the cities of Mound and Elk River. Both of these cities do have the Certificate of Achievement for Excellence in Financial Reporting; however, the firm of Abdo Abdo & Eick does not have any representatives on the review committee for the Certificate program. They are the only firm submitting a proposal who is not active in the Certificate program. Their proposal also did not include background information on the individuals who will be performing the audit. It did indicate the total number of hours that they anticipate putting in on the audit, but did not break that down between the staff performing the audit and the manager in charge of the audit. The proposal did provide a schedule for when the audit would be done, but did not include an audit plan. Overall, the proposal by far had the least amount of information. The total cost proposed by Abdo Abdo & Eick for the City audit is $16,000 in the first year, with $400 increases in the second and third years. The total cost for the City, Relief Associations and HRA is $22,000. Malloy Karnowski Radosevich & Co. This firm has performed the City's audit for the last three years. When they were originally selected by the City, they were operating as Pannell Kerr Forster, a major national CPA firm. In 1991, the local office separated from Pannell Kerr Forster, and became Malloy Karnowski Radosevich & Co., and the audit for 1991 was performed by this new entity. There was a significant change in this firm with the separation from Pannell Kerr Forster. At that same time, rwo of the major employees, the manager in charge of our audit and the on-site supervisor, left the firm. This meant that the 1991 audit was done by new staff and staff with significantly less Memo to Stuart Anderson October 8, 1992 Page 5 background and qualifications. Because of this, the 1991 audit involved significantly more City staff time, took longer to complete, and was not of the same quality as the two prior years. The proposal from this finn for the 1992 audit involves the same staff as the 1991 audit. In the proposal from this firm, they indicate a significant background and several years of experience and involvement with different governmental entities and programs. However, a major ponion of that goes back to when they were part of Pannell Kerr Forster. The proposed cost for the 1992 audit is a total of $27,200, with a $400 per year increase for the second and third years. Tautges Redpath & Co. This firm submitted a very complete proposal. It included an audit plan, and they were the only firm to submit a detailed checklist on the information and schedules the City would prepare for the audit. This firm audits several major cities in the metropolitan area: Champlin, Cottage Grove, Fridley, Inver Grove Heights, Moundsview, New Brighton, Oakdale, Shoreview, South St. Paul and Woodbury. Tautges Redpath & Co. has audited six of these cities for more than ten years. Also, eight of these cities have the GFOA Certificate of Achievement for Excellence in Financial Reponing. This firm is highly involved with that program and other governmental programs. They proposed a total of 345 hours for the City audit. The breakdown on the hours by staff of their firm had significantly more experienced people putting in more hours than the other proposals. This would indicate that the auditors doing the work on the City audit would have more experience and potentially be able to provide a better service. This firm also submitted a Request for Proposals in 1989. The staff that they are proposing to do the current audit are the same staff that were proposed in their 1989 proposal, indicating they have very little turnover in staff. This is a good sign because most auditing firms have a significant turnover on a regular basis. This lack of turnover means a more consistent audit, and less time and frustration for City staff in retraining new auditors. They are also the only firm that employs ponable computers to do their fieldwork. All fieldwork is done directly on a computer, which indicates a high level of advancement in utilization of new technology. The total cost of their proposal for the City, Relief Associations and HRA was $27,045. Overall, based on the quality of the proposal, the detail of the proposal, and the experience of the individuals doing the audit, this firm appears to be the best value for the City. SUMMARY Based on the audit proposals received and the criteria used to review these proposals, it is staffs recommendation that the City select Tautges, Redpath & Co. as the City's auditing firm. Their proposal was very complete, it gave the best detailed audit plan approach, and requirements. Their overall cost is in the middle of the road --they are not the highest nor the lowest They would utilize a high level of experienced staff on the City audit. They have demonstrated a consistency in staff remaining with their company and being assigned to the cities on an ongoing basis, eliminating the City dealing with new, inexperienced auditors each year. In addition, one of the emphasized items in their proposal is their management repon and recommendations. They prepare a very good, extensive management repon and evaluation of the city. I have Memo to Stuan Anderson October 8, 1992 Page 6 attached a copy of the management repon they provided the City of Oak.dale (blue attachment). With the changing requirements and the annual financial repon becoming more summarized and complicated to read, a quality management letter enables the City Council to comprehend the significant items in a narrative format. The following is a brief summary of staffs reasons for not selecting the other auditing finns: Abdo Abdo & Eick: This company submitted the lowest cost proposal. For the first year of the City audit, their cost was $2,465 less than Tautges, Redpath & Co. However, their proposal was very light. It did not give a good indication of their audit plan and the staffing level that would be involved in the audit. They are doing audits primarily of rural Minnesota cities and two small metropolitan cities. They are not involved in the GFOA Certificate program. Mallov Kamowski Radosevich & Co.: This is the finn that has audited the City's records for the past three years. During the first two years they were pan of the national firm Pannell Kerr Forster. During those two years, the City received an excellent audit; however, last year with their separation from Pannell Kerr Forster and the loss of several key staff people, the audit was not at the same level. Staff utilized on the City audit had minimum experience in municipal auditing, there were several time delays, there were typographical errors and totalling errors in the repon, and some of the notes in the repon were not entirely correct. In general, the City received an adequate audit; however, the quality of the final repon does not indicate this and the amount of staff time spent training and working with the auditing staff was significant. KPMG Peat Marwick: This finn has all of the qualifications of Tautges, Redpath & Co. (the firm recommended by staff). The only significant difference between the two firms is the cost of the audit and the fact that Peat Marwick does not provide as detailed a management letter. This finn would be staffs second choice for an auditing firm. Deloitte & Touche: This firm also submitted a very good proposal. However, they only submitted a one-year proposal, and the number of hours for their staff to perform the audit was low. The total cost of their audit for the City, Fire Reliefs and HRA was $1,265 less than Tautges, Redpath & Co.; however, their quote for the City portion of the audit was significantly less. This finn has a reputation of producing quality audit repons. However, the cost they charge to other cities is approximately $10,000 more than what they proposed for our City audit. This, combined together with the low number of hours included in their repon, and the fact that they would only give a one-year proposal, indicates they may come back with a significant increase in year two of the audit. If the City Council selects this firm, they should be prepared for the possibility of a significant increase next year. If there is additional information you need on this subject, please let me know. WE:dn auditsum Attachments: Cost Summary Oak.dale Management Letter CITY OF COLUMBIA HEIGHTS AUDIT PROPOSALS SUMMARY OF COSTS PRINTED 09-Oct , st year Abdo Abdo & Eick City 16,000 Vol Fire 1,000 Pd Fire 1,000 HRA 4,000 Total 22,000 Tautges, Redpath & Co City 19,185 Vol Fire 1,508 Pd Fire 1,508 HRA 5,564 Total 27,765 2nd year 16,400 19,930 Mal loy,Karnowski,Radosevich & Co City 18,500 18,900 Vol Fire 1,350 Pd Fire 1,350 HRA 6,000 Total 27,200 KPMG Peat Marwick City 20,500 21,000 Vol Fire 2,500 Pd Fire 2,500 HRA 7,500 Total 33,000 Deloitte & Touche City 14,500 Vol Fire 2,500 Pd Fire 2,500 HRA 7,000 Total 26,500 NOTE: 3rd year Total Deduct for Typing 16,800 49,200 (1,000) 1,000 Only firm to 1 ,000 quote 3yr on all 4,000 audits 55,200 21,045 60,160 (1,065) 1,508 1,508 5,564 68,740 19,300 56,700 (1,200) 1,350 1,350 6,000 65,400 21,500 63,000 (3,000) 2,500 2,500 7,500 75,500 (4,000) The total column includes the 3 year total for the City but only 1 year on the other audits. Deloitte & Touche only submitted a 1 year proposal. ��mc� � & CO.,P.A. March 13, 1992 City Council and Residents City of Columbia Heights Columbia Heights, Minnesota PRINCIPALS KENNETH W. MALLoY, CPA l1-fOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 1991, and have issued our report thereon dated March 13, 1992. In connection with our audit, we offer the following comments to assist you with the financial planning for your City and the improvement of your accounting records. Certificate of Achievement Award We would like to congratulate the City for rece1vmg the "Certificate of Achievement for Excellence in Financial Reporting" award for its 1990 financial statements. This award was granted under the Government Finance Officers' Association's (GFOA) review program. We would also like to commend the City's staff for the effort to make this award a reality. It is particularly nctev. orthy that the City received this award for the first time it participated in the review program . Personnel and Payroll Filing System The City's personnel files are currently maintained by the Assistant City Manager. The personnel files are generaHy locked in a file cabinet to properly maintain confidentiality when the Assistant City Manager is away from her office. During our audit fieldwork, we were unable to obtain payroil information when the Assistant City Manager was away from her office. We understand that it is also difficul t for the payroll clerk to obtain necessary payroll information under the same circumstances. The delays in retrieving this information has created a certain amount of inefficiency in our audit and the function of the payroll clerk. The City may want to consider changing its filing method and/or procedures. One solution would be to file the Forms W-4, pay rate authorization forms, and any other information required by the payroll clerk in a file cabinet adjacent to the payroll clerk's working area. All other personnel file information, including confidential items such as employee evaluation forms, disciplinary actions, etc., could continue to be maintained by the Assistant City Manager. Another solution would be that the payroll clerk could be issued a key to the Assistant City Manager's personnel filing cabinet. C::IIC....,..tPar.a:, .-.....�11-•c .,,,.C::c;,e> ............. .-.-,.... 410 PARK NATIONAL BANK BUILDING 5353 WAVZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 1112-Sol5-0424 TEl..EF',OJC: 1112-545-0589 City Council and Residents March 13, 1992 Page 2 We recommend that you consider these or other possible solutions that would allow the payroll clerk to have better access to the information needed to process the payroll. Cross Training of Finance Depa rtment Personnel In the City's finance department, certain staff members have attained a high degree of specialization in performing certain functions, including computerization, network operations, and other accounting functions. One of the benefits of this situation is that a high level of efficiency can be achieved. On the other hand, it is common for employees to become suddenly unavailable to perform their duties due to illness, injury, termination of employment, or other factors. This could create delays for the City if no other employee is cross trained to perform a certain specialized function. We recommend that you evaluate all functions of the finance department to determine which specialized functions are performed by only one person. More than one person is already trained for some major functions, including cash receipts and cash disburse ments processing. The finance department should consider implementing a cross training program for the functions that are critical to the operation of the City. Any cross training program should also be evaluated for cost effectiveness. An appropriate cross training program would help to ensure the smooth operations of the City well into the future. Commingling of City and Personal Cash During our testing of the City's cash receipts, we noted one instance where proceeds of bicycle licenses were deposited into the personal checking account of one of the City's policemen. A check was then drawn on the personal account to the order of the Minnesota Department of Public Safety for bicycle licenses. We found no evidence of a misuse of public funds. Also, this appears to have been an isolated incident. However, all City funds should be deposited only in the City's bank account. Allowing the deposit of cash in an employee's personal account creates the opportunity for misuse of funds. We recommend that the City communicate to all employees a policy that prohibits commingling of City and personal cash. Columbia Heights Fire Association In connection with our audit of the Columbia Heights Fire Department Relief Association, we became aware of the activities of a separate organization with the name -Columbia Heights Fire Association. The Columbia Heights Fire Department Relief Association operates under the provisions of Minnesota Statutes primarily for the purpose of maintaining the pension retirement plan for fire department personnel. In accordance with a Minnesota Statute that requires an annual audit, we have audited this relief association for 1991 as part of our normal audit process. We understand that the separate organization, Columbia Heights Fire Association, has fund raisers and other activities for the benefit of the fire fighters of the City. Because this separate City Council and Residents March 13, 1992 Page 3 entity has its own Board of Directors, it is not within the scope of our audit and we have performed no procedures relating to this entity. Our only intention is to make the City Council aware of certain possible issues relating to this separate entity. Because of the similarity in names and because this separate entity uses the City's mailing address, the public could reasonably infer that this entity is part of the City. We would like to present the following issues for the City's consideration: 1.Is the entity properly incorporated in the State as a nonprofit corporation'? Have requiredtax return filings been made with the State and Federal governments? From a political standpoint, the City may have an inherent or implied fiduciary responsibility to ensure that legal requirements are met. 2.If there were an injury or some other unforeseen event relating to a fund-raiser or other activity, could the City be held liable? Does the entity have adequate insurance coverage or could the City's insurance coverage be affected? 3.Are the entity's activities and use of funds appropriate and in the interest of the public'? Our purpose in discussing these items is only to ensure that the City Council is aware of the possible impact of an inference that this entity is part of the City. Required Communications Statement on Auditing Standards Number 61, "Communication with Audit Committees," requires the auditor to ensure that certain matters related to the conduct of an audit are communicated to those who have responsibility for oversight of the financial reporting process. This letter constitutes our communication of such matters. 1.The Auditor's Responsibility Under Generally Accepted Auditing Standards Generally accepted auditing standards require auditors to plan and perform audits to obtain reasonable, but not absolute, assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Under generally accepted auditing standards, the auditor assumes different levels ofresponsibility for different sections of the City's Comprehensive Annual Financial Report. For a description of the levels of responsibility assumed, refer to the "Independent Auditor's Report" included at the beginning of the Financial Section of the City's Comprehensive Annual Financial Report. City Council and Residents March 13, 1992 Page 4 2.Significant Accounting Policies There were no changes in significant accounting policies or their application during the year audited, except for the adoption of the new GASB Statement No. 14, "The Financial Reporting Entity," with which we concur. Under this statement, the City's Housing and Redevelopment Authority (HRA) component unit is presented as a separate column in the City's general purpose financial statements. Previously, the HRA was included in the City's financial statements as part of the special revenue, agency, general fixed assets, and general long-term debt fund types and account groups. 3.Disagreements With Management We have no disagreements with management concerning the application of accounting principles, accounting estimates, the scope of the audit, disclosures in the financial statements, wording of the auditor's report, or any other matter significant to the City's general purpose financial statements. 4.Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management relating to the performance of the audit. Graphic Information Microcomputers are utilized extensively while performing audits of City records. A beneficial result is that certain trend analysis and analytical relationship information can be obtained. The following pages contain certain generalized graphs produced from our electronic workpapers which may be of interest to you. Some of this information does appear in the various schedules of the City's financial statements while some information is from other sources which may not have been subject to our audit procedures. It should be noted that previous years' amounts were taken from other auditors' reports and may not be comparable to the current year's data. Also take note that the effects of the Housing and Redevelopment Authority, as well as any escrowed cash and investment accounts, and general fixed assets have been removed from these graphs in any applicable instance. 0 All Funds Financial Position -The large increase in the 1987 fund bal ance/retained earnings results, in part, from the change in accounting principles relating to Special Assessment Funds. :i ! � :i 21 20 19 18 17 16 15 14 13 12 11 10 9 6 5.5 5 4.5 ,. 4 3.5 3 2.5 1984 ALL FUNDS FINANCIAL POSITION 1985 1986 1987 1988 1989 AS OF DECEMBER 31 D CASH & INVESTMENTS + FUND BAL & RET EARN 1990 GENERAL FUND FINANCIAL POSITION 1984 1985 1986 1987 1988 1989 AT DECEMBER 31 o CASH & INVESTMENTS + FUND BALANCE 1990 Page 5 1991 1991 7 6.5 6 5.5 5 :i 4.5 4 3.5 3 1984 7 6.5 6 5.5 5 :i 4.5 4 3.5 3 1984 GENERAL FUND REVENUE EXCLUDES TRANSFERS 1985 1986 1987 1988 1989 FOR YEAR ENDED DECEMBER 31 o ACTUAL REVENUES + REVENUE BUDGET GENERAL FUND EXPENDITURE EXCLUDES TRANSFERS 1985 1986 1987 1988 1989 FOR YEAR ENDED DECEMBER 31 o ACTUAL EXPENDITURES + EXPENDITURE BUDGET Page 6 1990 1991 1990 1991 7 6.5 6 5.5 5 � 4.5 4 3.5 3 16 15 14 13 12 11 to "'ii � 7 6 5 4 3 2 1 0 GENERAL FUND REVENUE/EXPENDITURES 1984 " "" EXCLUDES TRANSFERS 1985 1986 1987 1988 1989 YEAR ENDED DECEMBER 31 D ACTUAL REVENUE + ACTUAL EXPENDITURES CASH AND INVESTMENT FLOW -;-..... / � � I -------.. s-__ ?----... 1990 � 1991 I / � / 'I -,,,, ""!::I I I I J ' I JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC MONTH END CASH & INVESTMENT BALANCES FOR 1991 o GENERAL FUND + ALL FUNDS Page 7 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1 • -�0.9 :i 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 1.7 I 1.6 1.5 1.4 1.3 1.2 1.1 1 ""ii � 0.9 :i 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 r!i---_ 1984 1985 o WATER REVENUE --- .,.___________ -- /I 1984 1985 o WATER EXPENSES UTILITY REVENUE EXCLUDES TRANSFERS I -= I � / � / �er ::::::--./ - �- t I I I I 1986 1987 1988 1989 1990 FOR YEAR ENDED DECEMBER 31 + SEWER REVENUE o REFUSE REVENUE UTILITY EXPENSES EXCLUDES TRANSFERS I 1991 � � / -----------// � .--a / / _,/ ./ ' I I 1986 1987 1988 FOR YEAR ENDED DECEMBER 31 + SEWER EXPENSES I I 1989 1990 o REFUSE EXPENSES 1 1991 Page 8 TAX LEVIES Page 9 3.2 3 - 2.8 2.6 2.4 2.2 2 • 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 � ' ,. a3 � � �o w, � � .,�� )(� �g 8 Q I s: � 'II x; 5i ) mm �>< '-�� 'Ii 8 �I�> �iffi L � '.,C: � � .">. � � )'Iii � X . K � � �� R l ��§ 0 ��- 0 . �R m, - ,,. 8 . �- - ) -� . � � - ,< �� B � )C � � ·"' � >i � A £,.>IQ "' � �� >\ � � � � ......_ ffin� 'S.' 5: ""' �� f---- 1984 1985 1986 1987 1988 1989 1990 1991 YEAR LEVY COLLECTIBLE � GENERAL REVENUE � DEBT SERVICE City Council and Residents March 13, 1992 Page 10 We would be pleased to discuss these comments and recommendations with you and to assist with any changes you wish to make. Sincerely, MALLOY, KARNOWSKI, RADOSEVICH & CO., P.A. £_/� Kenneth W. Malloy, CPA Principal KWM:sel S'cunp/e -J INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Mayor and Council City of Minnesota .:g }._ ' .... ABX)r ,nr�, .. -• •...1 • �-,.. \.,.' , .. • t. ;:·---;,........... �..,............\.-.... � � CERTIFIED PUBLIC ACCOUNTANTS AND CoNSULTANTS We have audited the general purpose financial statements of the City of Minnesota as of and for the year ended December 31, 1991 and have issued our report thereon dated July 9, 1992. We have conducted eur audit in accordance with generally accept�d .auditing standar.ds, Goverilme(Jt Au·diting Standards, issued by the Comptroller General of the Uni�ed States, and the provisions ef Offiee of Management and Bud_get Circular A-128, "Audits of State a·nd Local Governments." Those staoaar!als and 01'µ3 Cireular A-128 ,regu-ire that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financi"al statements are free 0f material misstatement. In plannLn:g and perferming-eur audit ef ·the general pur-pose finan_cial sta.tem�nts ef the City of £01, th'e year ended December 31, 19�1, we considered its internal cont-rel structure i-n erder to .d�tergline our auditing preeedui:::es far the pur·pase of e.xpresering aur opi_nien on the gene.ral purpose financi_al statements a.nd not te provide assurancEi on the internal control structure. However, we nated eertain nfatte·rs inv�lving the inte_rnal control structure and its operation that we censider to be reportab1e c_encUt;ions under s·tandards estaplished by tl)e Amer.lean Institute of Certified Puplie -Aecountants. :Reportaple cendit_iona involve matters tfla:t, in our judgement, could adversel.y affeet the City of Nertfifield • s ab_ility t9 record, process, summa·-ricze, and report financial data consist;ent with the assertions of management in �he ,general purpose financial statements. REPORTABLE CONDITIONS The following reportable conditions are not considered material weaknesses: SPEC'IAL ASSES·SMEN.T HEARING AND . .M>PROV:AL _pROCESS Kt the pre!3ent time,, the Ci0t y of :ices not follow· a consistent pattern for its approach to presenting, eonsidering, h�aring, appr0ving, bqnding, and constructing major special a_ssessment projeets. We rec91ll1'9end the City adopt a concise policy and procedu-re re _gardin9 special assessment projec'ts. The key element 0:f this policy is tfie reguirement tha:t a hearing for con.sideration of projects be held prior to cqmmencE:!m·ent of any o.ther activities relative te> ,the pr0j,ect. Including in this hearing would be the p:i;-oposed ass_essment roll, whic-h ultimately would include a not to exceed figure being made a-vaila,ble te �he affeeted property owners for thei.r acceptance. A fur't.her part of tbis process includes a precise schedule for construction and resource management of each project. The City· has had a history of misma:tche9 assessment hearings, issuance 0f bond@, canstructi�n ef ·projects and final adopt.ion of assessmen:t: rqlls. Most recently the 1991 project on Washing-:on Street saw the asses�m·ent billing da·t.e for the project come a.nd go. This now has a minimum qel.ay of fiye months. Without ini'tiating the billing the City not only, ha:s redaced its a:vailable revenues, it has als_o lost the availability f·ot; the funds fq_r gener·a:ting investment inceme. At the sanie time the bonds that have been issued a:nd a-re drawing interest and the unrecovered cost was net centemplated as part of the capi'tal.ized interest in the original project. Member of American =nstitute of Certified Public Accountants Private Companies Practice Section 115 EAST HICKORY STREET, SUITE 302 P.O. BOX 3166 MANKATO, MINNESOTA 56002-3166 (507) 625-2727 FAX (507) 388-9139 204 EAST PEARL STREET P.O. BOX 345 OWATONNA. MINNESOTA 55060-0345 (507)451-9136 FAX (507) 451-0794 1060 NORTHLAND PLAZA 3800 WEST 80TH ST REET MINNEAPOLIS, MINNESOTA 55431 (612) 835-9090 FAX (612) 896-3620 Page Two ABX) � CeJmAED PuBuc AcrouN,-AN'!S ANO 0JNSULTANTS Therefore, the debt service fund for the 1991 projects is already in arrears by at least $40,000. There have been additional instances over the years in which projects have lingered in their development. We also noted other instances where amounts of assessments are being revisited years later. The need for concise action is driven mostly by the existence of bonds as the underlying financing. Bonds carry precise payments and constant costs of interest. Without timely completion and full assessment of the projects as planned, the City exposes itself to a risk of having to make use of additjonal resources to maintain the level of debt service required. This risk could be substan1;ially mitigated by a more orderly process of dealing with speci�l assessment projects. By giving the improved property owners their say in advance the· City goes not incur unnecessary costs, expose itself to delays or the risk t·hat subsequent events could change ·the balance of the project. It is only logica). that such a -plan be agopte.d. We encourage the City to do so in the earliest possible time frame. COMPENSATION RESOLUTION/DOCUMENTATION During the course pf eur audit, we have identified several elements of compens·ation or benef·its which are considered as compensation fe1c employees. While this may in fact ee true, s.uff.icient decumentatlon dees net exist nc.,r are accounting practices con,sist_ent with the idea of these it.ems= as compensat.ion. Instead, there is either a lack of decumentation qr an inc.onsistency in how they are presented within the financial recer�s. The specific items u�der question include the bonus compensation plan at th� municipal liquor store, the municipal liquor store discount pregram for municipal employees, employee gatherings, and the payment of cable televisiQn service for ceuncil members. Each of these items have been questioned by us in a legal compliance framework. The burden of proof that such items function within the statute lies with the City. As of the date of the completion of our field work sufficient documentation and authority was not present within the City to establish that compliance within the statute. The incentive compensation plan that exists at the municipal liquor store has been authorized by the council. However, ultimate determination of this item lies at the discretion of the city administrator. The plan actually involves the primary recipient of the incentive plan-in setting the amount to be earned and its allocation. The incentive compensation plan has been baaed en a formula for the last two years. The form1a1la isn't set until a significant pertion of the year in question has already passed. While it is difficult to second guess the basis for the plan based on facts and circumstances at the time, we have noted that there is not any correlation between the formulated results and the budget presented for the store. In fact for 1991, th� budget amounts presented were reduced from the actual resttlts o'f the previous year. 'l!here do!,!s not ap�ar ta be a.cny measurable incentive e·lemen:t to the formula package. This compensation plan is not within the statutory autherity. We have recaived cepies ·of State Attorney General opinions which clearly indieate that such a compensatien program -is not authorized within the statutes. Further, the State Auditer' s Of,fice has directed us to advise the City of Northfield to cease and desist the plan immediately. To do otherwise will result in further action by the Office of the State Auditor with regard to this compensation plan. The City has a pelicy to al.low a 10% discount on all purchases at the municipal liquor store by City emplo�ees. This is an established practice and is generally known both to employees an�.' to the public. There is no documentary support for this privilege. The City .has not taken the necessary steps to establish authority under statute. Nor has any ongoing accountiqg or supervision of the benefit been made. We believe it is very likely that this privilege could be construed as a gratuity, more specifically, not allowed under statute. We recommend that the City consult with its attorney and make a determination with regard to this matter to either discontinue the practice or bring it into compliance with statute. In doing so the necessary documentation and accounting must be developed. -82- Page Three AffX) � UK!lAED Pul!I.Jc Ao:oum-ANlo AND 0:JNSUI.TM'l> The City has a regular practice of providing at least one employee gathering during the year. Several references in the minutes were to the employee Christmas party. We are the first to acknowledge the importance of the service and dedication of municipal employees. However, under the statues such items are considered gratuities and therefore not authorized. In fact, there is a specific reference in the League Handbook that identifies Christmas parties as unallowable expenditures. We recommend that the City seek alternate means of financing these activities. Many governments establish employee funds which have accumulated resources through the operation of vending machines or other fund raising activities beyond the scope of City services. If this course can not be followed then the City must establish an allowable basis for these gatherings or discontinue the City expenditure. The City has been providing cable television service for Council Members for a number of years. So far the specific resolution or other documentation detailing the background for the approval of this expenditure has not been located. City staff believes that it was authorized in lieu of compensation in the early 1980's. Regardless of the circumstance, this type of inkind compensation needs to be better documented and designated under proper statutory authority. If it is intended as an element of compensation, it should become part of the compensation resolution. Also all accounting for the costs of this expenditure should be categorized accordingly. We recommend the Council work with the staff and legal counsel to get this properly documented. SEASONAL BIDDING FOR RECURRING ORDERS ON GOODS AND SERVICES The City of does not use a practice of seeking seasonal bids for goods and services that it uses on a recurring basis throughout the year. The purpose of seasonal bide is to allow the City the opportunity to get competitive bids on various goods and services that represent significant quantities when individual purchases are aggregated. Some common examples of items to be covered by seasonal bide includes asphalt, salt and sand, crushed rock, watermaine, man-hole covers and fire hydrants, stump removal, motor fuels, and contract machine rental. The City presently gets quotes for some of these items. No formal process has been established. We recommend that the City implement a practice of seasonal bids for such items. The City can accept more than one quotation or bid from multiple vendors when prices are comparable and the demand for quantities or use may exceed an individual vendors short term capabilities. This especially occurs with goods and services related to winter street maintenance and snow removal. Seasonal bids are typically let once or twice a year. CONTRACTS WITH ENTITIES IN WHICH AN ELECTED OFFICIAL IS AN EMPLOYEE Minnesota Statute 6.65 established various elements of legal compliance for local governments. One of these components is the matter of conflict of interest. Under the guidelines there is not necessarily a conflict of interest in the situation where the elected official receives ordinary and customary salary for services to the entity regardless of the existence of the contract. During the course of our audit we became aware of the City's contract with a non-profit corporation. It is our understanding that a Council Member is an employee of that entity. We recommend that the City attorney review this transaction and establish whether or not conflict of interest exists or not. Regar�leee of that outcome, Minnesota Statute 471.8 subdivision 1 does require unanimous approval by the governing body for any contract which an elected official is an interested party. This unanimous vote must be of all members present except the party in interest. The City needs to have such a resolution passed to validate this type of transaction instead of leaving it implied within the budget or other processes. -83- Page Four PAYROLL ACCOUNTING AND REPORT RECONCILIATION AHX) � CamRED Pueuc Aa:oumA.,:TS /\ND CclNSULTAN15 The City's payroll accounting is very complex. It has been computerized in order to facilitate maintaining control over the substantial amount of data related to payroll. Since this area represents the single largest classification of expenditures made by a municipality, it draws considerable testing by us in our audit. In connection with our tests, we determined several instances where City quarterly reports to regulatory authorities contained data which was not reconciled to the main information for the City. Upon reviewing the causes of these differences, we discovered that personnel involved with the computerized system have not been trained about the full capabilities of the system. We recommend the proper training be obtained. They should also consult with other municipalities who also use the system for the subtle techniques that help make the most out of the reports. Over the last several years we have found a number of cities are having troubles keeping in compliance with the Internal Revenue Service reporting requirements. Some of the problems stem with the lack of instructions from the IRS. Our firm is willing to serve as a resource in working through these matters. MATERIAL WEAKNESS 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 errors or irregularities in amounts that would be material in relation to 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. The following reportable conditions are also considered material weaknesses: MUNICIPAL LIQUOR STORE The operation of the Municipal Liquor Store has shown good financial results for the last five years including 1991. It has demonstrated its role in providing resources to other operations. It is therefore important to safeguard these assets through good internal controls. There are several control deficiencies in the Municipal Liquor Store. These include a lack of segregation of duties for charge sales and on the Wine Club dues. No purchase orders or formal documentation process is utilized for ordering, receiving or for payment on goods purchased. Present practice functions, but does not provide adequate assurance of compliance or safeguarding of assets. We recommend the use of purchase orders to address this situation. The present computerized inventory system needs revision to accommodate this process. Accounts receivable may be the best example for segregation of duties. At the present, customers authorized by the manager, may charge product at the store. These slips are retained and periodically gathered by the manager who prepares a statement for payment. The manager maintains all record keeping regarding statements outstanding. There is no recognition by the operations until the statement is actually paid. Tickets utilized in this process are sequentially numbered. However, they are under the control and retention of the store manager. There are omissions in the record keeping through incomplete records on charge slips, occasional lack of dating, names, amounts or details. Because there is no one reviewing or overseeing this information or being a part of the loop, it is completed only to the degree the manager cares to comply. Since there is no record of the sale until collection, it is possible for someone to place an order, receive product and potentially never pay, without being detected. Also, there is no monitoring of the credi� worthiness or result of extension of credit to users of this system by anyone outside the manager. We recommend the City utilize the accounts receivable functions available through the accounting department for all -84- Page Five AffX) � CEIUlRID Puauc Aanur-.TA,.s .-.ND 0:iNSULTM'TS charge sales. These sales should be recognized at the point the merchandise is removed from the store. The manager should continue to authorize the charges and be part of the follow up process to monitor collection. Credit limits should be established as a policy. Specific rules should be made regarding charge privileges to City employees. The City liquor store is the sponsor of a wine club for the community. Club members pay dues to belong, and members can attend periodic club meetings which are sponsored by various distributors who sell product to the store. The distributors provide the samples at the club meetings. Club members are allowed to purchase the offered products at a 25� discount if purchased at the club meeting. If purchased at a subsequent date, the discount is only 15%. Club members can also get 15% discount on all wine purchases at the store at any time. Club sales are made on a charge basis with terms of c.o.d. The practice of the liquor store manager has been to collect membership dues throughout the year and retain them in the store safe. A deposit is made at year end remitting the membership fees. Any member paying by check has their check cashed through the register and cash is placed in a pouch in the safe. An analytical review of recalculating the number of members times the membership fees indicates that the deposit made in December of 1991 was short of what was expected for the level of membership. The manager has stated that no funds are paid out of the Wine Club pouch. There is no accounting made to the membership nor to the City. We recommend that all memberships be recorded on a roster and that payment is recorded as made. At least monthly the dues should be deposited and reconciled to the roster. The accounting department already has a roster of names and dates through which memberships are paid. The staff's should work together to provide the names associated with dues deposited and account for all receipts for members. There is a general lack of teamwork between the accounting department and the liquor store employees. It is most evident on the computerized perpetual inventory system. This system is not functioning as it should. Instead of working together on a solution each group complains and has perpetuated procedures that get by but wastes considerable amounts of time, and delays information, making it almost useless. An example that causes these delays is UPC coding. The store has experienced a considerable amount of difficulty in dealing with UPC coding. When product comes in it is placed on the shelf for sale. When it is actually sold, and a UPC has changed, store personnel are unaware of the change until it is rejected by the computer. This rejection results in a time consuming process for the store employees, the customer and the accounting people at City Hall. Additional forms have to be completed and manual adjustments made to the inventory. The obvious solution to this problem is to utilize the receiving process to also identify UPC changes and enter them into the computer at that time. Store personnel seem to think it is inappropriate to have different UPC codes for the same item. For instance, they may change only for a change in bottle type, rather than product or package size. To us, this precision would actually be better because it allows each purchase to be tracked until sold out. Before any progress is made in any area the staff's of both departments need to meet, air their differences and accept a common ground. Each has something to offer to the process that the other can not provide effectively. At a minimum the problem must be solved to make inventory monitoring possible on a timely and reliable basis. FUND ACCOUNTING AS A MEASURE OF FLOW OF RESOURCES The present day fund accounting model used for governmental units is intended to present and measure the flow of resources. It is not intended to emulate business accounting, which identifies all items as they occur. Rather, in government the presentation is driven by the availability and use of resources. For instance, special assessments are not recognized until the year in which they are collected, even though the total amount due is known well in advance of that time. This form of accounting was developed in order to facilitate a financial presentation of the stewardship by the current governing body over the resources under its control. -85- Page Six AID) � CarnAED Ptnuc Acx:ool-'TM'TS -'ND 0:iNSULTANTo For the 1991 audit, we have presented the special assessment funds in greater detail than has occurred in the past. Each fund has its own identity and purpose. The resources of each fund are restricted (generally by an underlying bond indenture) to the stated activities and related debt obligations established for each project. Because of the restricti0ns established, they should not be co-mingled or drawn upon by other funds or activities. Prior to 1991 an inference has been drawn by the City that these fund were available as a pool for a wide variety of projects. In the course of pursuing this practice, the City has expended substantially more money out of its 501 Special Assessments Fund than is otherwise availa:ole. This has been made possible by other special assessment funds surplus balanees which have been held in the common checking account. As of December 31, 1991 the City has a cash deficit of approximately $938,000, and a fund deficit of $1,287,000 in the 501 Fund. After having reviewed this condition with the City staff, it has been determined that approximately $630,000 of these amounts could be recovered through future assessments and other charges being levied to finance projects. Further, a transfer to the Street Infrastructure Fund for $500,000 was made with the understanding that should future activities identify that the original transfer was inappropriate in light of the needs of the transferring fund, the transfer could be returned. Therefore, it is possible for the Council to authorize a transfer from the Street Infrastructure Fund for $500,000 back to Fund 501.These two changes along with the determination of funding for the remaining$300,000 shortage would bring the 501 Fund back to normal and remove the deficitfund balance. The difference between the cash overdraft and the fund equity is made up of an obligation by the 501 Fund back to the 307 Fund. Fund 307 receives tax levies made by the City in support of various bond projects that have either a deferred or City component. Fund 307 collects these revenues and transfers them to the appropriate fund·. This 'fund has made temperary transfers through interfund payables and receivables to both Funds 532 and 501. The City of has a significant number of special revenue, capital project and debt service funds. Each of these funds have been established for a specific purpose. Each exists for the ongoing accounting regarding those activities. Shifting of resources within a fund requires staff action, however, shifting of resources between funds requires the action of the Council. The Council should weight the significance of any transfers between funds, as this generally represents a change in priorities or capabilities for project funding. The integrity of this accounting and the activity within these funds must be maintained in order to stay in compliance with the terms of bond agreements. The City should be closing a number of funds over the next five years that w0uld allow Fund 501 to develop into the revolving fund that is needed for certain projects. However, until funding is available first, projects should not be drawn against Fund 501. EOUI:.PMENT CERTIFICAT.E .INDEBTEDNESS AND RELATED TAX LEVY In December of 1991 the City issued Certificates of Indebtedness for the purpose of making capital purchases in the amount of $198,000. These certificates were paid off approximately 18 days later by tax settlement proceeds received during 1991. We were alerted to this condition through information contained in the minutes authorizing the issuance of the certificates. The budget process under which the tax levy collectible in 1991 functioned caused the levy to be established and was authorized during 1990. This means that the levy for the debt was authorized by the council prior to the existence of the actual debt. Minnesota Statutes which authorize the tax levying powers for a municipality do not provide for the establishment of tax levies for debt service on obligations which are not outstanding or authorized at the time the resolutions are made. Therefore, the levy authorized by the council in the Fall of 1990, which was collected during 1991, and subsequently used to pay off the 1991 equipment certificates is not authorized -86- Page Seven AIU) � CeRTIAED Puauc AcnJUNTAl,'TS AND OJNS\JLTANTI> within the statutes. The intent appear's that 1 t:he ·budget resolution was meant to authorize both the bonds and the levy. We recommend this point be clarified by a resolution. Before futures levies and related certificates are transacted a full determination of the propriety of these actions and their timing should be made by legal counsel. We suggest that a legal opinion be obtained with regard to thesecertificates for all future sales. SPECIAL ASSESSMENT MONITORING As a part of our audit we have made an evaluation of the financial statue of each Special Assessment (Debt Service) Fund. This evaluation has lead to the discovery of numerous errors in several funds over the last several years. These errors affect future receivables or the allocations of revenues. Since they have gone undetected this raises concern about procedures used to monitor these funds. Throughout the audit of Special Assessment activities, we have noted a general lack of monitoring. We recommend that procedures are developed and enforced to regularly review the timeliness of execution of phases in each project. This would cover not only construction but also filing for grants and aids, assessment collection rates, and the proper allocation of shared resources to projects. The City must have accurate and timely information on these activities in order to manage tax levies and future projects. OTHER MATTERS The following are observations and comments that are presented for your consideration. The role of the Council should be a policy making body. The role of the staff is to operate the City within those policies, the operating ordinance and the City charter. We suggest a return to basics because of the reaction we have sensed to our audit report findings. We have rearranged the special assessmentfunds and changed some perceptions regarding the financial position of the City. The City's priorities and the timing for some of its major activities may be altered by this new information. CITY OPERATI'NG ORDINANCE AMENDMENTS FOR COUNCIL MEETI:NGS As a part of our audit process, we review minutes of council proceedings. We also inquire about general procedures in the conduct of meetings and evaluate the financial records in light of matters authorized at the council level. Our firm has worked for many years with a wide variety of governmental units, including municipalities. During that time we have observed significant changes in the manner in which eouncil proceedings are executed. We have observed a trend which may be beneficial to the City of The City is attempting to utilize council committees as a way to address specific issues under broad topical areas. This process allows, a broader base of staff input and a forum for public interests to express their ideas. Members of the committee are usually appointed based on their interest in a p.articular subject area. A,11 of this work is then cha.nneled to the council through cemmittee reports where items can either be accepted or returned t,o the c�mmittee for additional work. The merits of such a process include ma:Jdng the most e-fficient use of council time for broad based issues and to serve as a PQlicy maker and leader in the municipal e_perations. Committee meetings are held with the full knowledge of the entire council and based on a pre-set agenda. We recommend that the City strengthen the Committee structure by assigning all general topical areas to a committee. Your present ordinance under Section 100.15 specifically designates the agenda for each council meeting. We suggest that the council consider working for amendments to this provision. These amendments would include the designation of an open mike section to the agenda, a� which time members of the public at large would be allowed -87- Page Eight APlX) � UKTIFIEll Puauc Aa:x:x.lNrM.'15 AND UlNSULTANTS to express their views on matters before the council. Otherwise the remainder of the council agenda would be closed to any comment accept at the direction of the chair. Also, the ordinance would be amended to include a committee report section ·recognizing this form of operation for the council members. We have observed anumber of communities similar to you in size who have made this transition. Theyhave found that a greater volume of work is handled without adding substantially tothe time commitment by council members. Time spent in committee meetings is tradedoff against shorter council meetings. The committee level is more appropriate fordealing with the detail issues and provides for the opportunity for staff to havefacts available that are usually otherwise impractical to be made available atcouncil meetings. SPECIAL ASSESSMENT COLLECTION BY THE COUNTY The City of has had a longstanding practice to maintain the records forand bill and collect its own special assessments. Many communities utilize theirlocal county for this purpose. Historically, the City has provided this service inorder to earn more interest on the collections than would it otherwise receivethrough periodic county settlements. Despite this situation, we recommend that theCity Council consider transferring the collection of its special assessments to theCounty as soon as possible. The benefits of this change include releasing asignificant portion of human resource time within the accounting department. Thisadditional time would allow that department to be more timely in its handling ofinformation and producing reports. Further, we believe the County and its statictime lines for certifying levies and providing information will lend additionalforms of structure to the special assessment and tax collection process. Having towork against this deadline will provide added incentive to the City in gettingprojects completed and assessed before the end of the year. The City would alsosave on computer costs and personnel time relating to subsequent reconciliations andinquiries. It is true that the City would be giving up control over a significantpiece of information. However, it has been our experience that counties are able toprovide reasonably accurate reports and the necessary information to meet the needsof the municipality and its citizens. CITY USE OF LEGAL COUNSEL At the present time the City uses legal counsel on an as needed by the hour basis.The City of is large enough to have regular demand for legal counsel. We recommend the City establish a retainer relationship with its City Attorney. This should open the access to legal counsel to review various matters of policy and procedure that could be affected by such advice. This report is intended solely for the information and use of Council or the City of , management, and others within the administration. However, this report is a matter of public record, and its distribution is not limited. July 9, 1992 Mankato, Minnesota ABDO, ABDO & EICK Certified Public Accountants -88- �CZM"-f_l e__-·-:-1:� Members of the City Council City of , Minnesota r· ::-, .� .. -'i i '-> :� .:. AEIX) r ,.. . � .. .: ,.,., . ..: CERTIRED PuBLic ACXXXJNTANTS AND 0:>NSULTANTS In planning and performin� our audit of the general purpose financial statements of the City of Minnesota for the year ended December 31, 1991, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. However, we noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the City's ability to record, process, summarize and report financial data-consistent with the assertions of management in the financial statements. 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 errors or irregularities in amounts that would be material in relation to the 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. our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we noted the following reportable condition that we believe to be a material weakness. Segregation of Duties our study and evaluation disclosed that because of the limited size of your office staff, your organization has limited segregation of duties. A good internal control structure contempla tes an adequate segregation of duties so that no one individual handles a transaction from inception to completion. While we recognize that your organization is not large enough to permit an adequate segregation of duties in all respects, it is important, however, that you be aware of this condition. The council needs to address this circumstance by continued active participation in the City's affairs. This should include approval of expenditures, regular review of financial statements and budget comparisons. Member of American Institute of Certified Public Accountants Private Companies Practice Section 115 EAST HICKORY STREIT. SUIIT lO! I'll IIOX 3166 MANKATO. MINNE.SOL'. j(j)Ol-3166 0071 621-mi r.,; ,t,..,.,. •••�,n lOt EAST l'EAJ\LSTllEET ID IIOX 341 OWIJON!<A. MINNESOrA ll060<ll41 (1071 <11-tll6 �av 1,;r>-n ac:1 "i<L.t I060 NORTHLAND PLAZA -WEST IIJTll STREET MINNEAl'OLIS, MINNESOrA 5�31 (<ill) 81\.0090 t:.t.VU.m*)!..�JI\ Mayor and Council Members Page Two Other Matters AffX) � UKT1RED Puwc Aa.XJurrANTS AND Cos.-1.TANTS The following are areas that came to our attention during the audit that we feel should be reviewed: Internal Service Gas Fund During· our audit of the City's Gas Fund inventory and corresponding charges to other funds, we discovered a shortage of approximately $5,000. To remedy the situation it was decided by the Finance Director to charge out the $5,000 shortage to the various funds to allow the Gas Fund to break even for the year ... We rec'ommend that this operation be monitored more closely to narrow the gap of gas costs versus charges to other funds. Electric Utility Fund Losses over the past few years, the Electric Utility Fund has suffered net losses. We are concerned about the increasing amount of these losses. The following is a summary of the past few years operations: Operating revenues Operating expenses Operating loss Nonoperating revenues Net loss General Ledger 1989 $4 406 443 4 585 155 (178 712) 60 248 S (118 4_64) 1990 $4 529 085 4 748 187 (219 102) 57 459 S (161 643) 1991 $ 4 S91 105 __4_928_402 s (337 297) 32 655 (304 642) For the past few years, it has been difficult to trace transactions through the City's general ledger. Due to computer software problems, the City was unable to print-out an accurate detailed general ledger. We were still able to audit the City's records despite this problem. We recommend that the City continue to work with its �oftware supplier to correct this situation. Financial Position and Results of Operations All general governmental functions of the City which are not accounted for in separate funds are included in the General Fund. Revenues and transfers for the General Fund for 1991 totaled $1,636,286, an increase of $81,117 or 5.2% over 1990. Mayor and Council Members Page Three Revenue Source General property taxes Special assessments Intergovernmental revenues Charges for services Licenses and permits Fines Interest Other revenue Transfer from other funds Total revenues and transfers 1991. $ 409 805 2 107 811 020 135 658 16 825 17 035 81 284 142 552 20 000 §1 636 286 Percent of Total 1990 25.0% $ 388 564 .1 924 49.6 852 288 8.3 139 892 1.0 16 120 1.1 17 883 5.0 49 818 8�7 77 305 �1.2 375 100.0% �1 555 169 AffX) � CmnRm Pua.Jc Aa:ou,.,AmS AND UlNSU.T.-..mi Increase (Decrease) From -1.990 $ 21 241 1 183 (41 268) (4 234) 705 (848) 31 466 65 247 __ 7_625 �81. 117 Expenditures for the General Fund for 1991 totaled $1,527,768. This is a decrease of .8% under the 1990 General Fund expenditures of $1,539,526. Percent Increase of (Decrease) Program 1991 Total 1990 F.r_o_m_l.990 Current General government $ 282 451 18.5% $ 299 992 $(17 541)Public safety 507 563 33.2 469 560 38 003 Streets and highways 173 619 11.4 165 784 7 835 Sanitation and waste removal 24 288 1.6 29 884 (5 596) Culture and recreation 119 498 7.8 228 510 (109 012) Miscellaneous 184 085 12.0 79 605 104 480 Total current 1 291 504 84.5 1 273 335 18 169 Capital outlay 236 264 15.5 259 791 (23 527) Debt service -6 400 (6 400) Total expenditures �l 527 768 100.0% �1 539, 526 §,11 758) Fund Balance Minnesota municipalities must maintain substantial amounts of fund balance in order to meet their liquidity and working capital needs as an operating entity. That is because a substantial portion of your revenue sources (taxes and intergovernmental revenues) are received in the fifth month of each six-month cycle. As you can see from the following information, there is still a need to continue to maintain the General Fund's fund balance in order to keep pace with the increasing operating budget. Mayor and Council Members Page Four Unreserved Fund Balance Year December 31 1987 $ 614 789 1988 639 075 1989 749 882 1990 765 525<0 1991 1 134 811<1> General Budget Fund Year Budget 1988 $1 181 185 1989 1 326 720 1990 1 236 003 1991 1 504 000 1992 1 433 507 O>Includes $500,000 designated for cash flow. APlX) � URT1REO Puiuc � AN> 0JNsu.TANTS Percent of Fund Balance to Budget 52.1 48.2 60.7 50.9 79.2 This report is intended solely for the use of management and Council. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. our audit would not necessarily disclose all weaknesses in the system, because it was based on selected tests of the accounting records and related data. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service, and for the courtesy and cooperation extended to us by your staff. Sincerely, ABDO, ABDO & EICK Certified Public Accountants /4Jdwu Gerald w. Eick, CPA GWE:cst Deloitte·:·r . 1Touche Iv 0 900 Pillsbury Center Telephone: (612) 333-2301 October 13, 1992 Mr. William J. Elrite Finance Director City of Columbia Heights 590 40th Avenue N.E. Columbia Heights, Minnesota 55421 Dear Mr. Elrite: Minneapolis, Minnesota 55402-1483 Facsimile: (612) 375-5418 r, .,-.--; i UL• l '. ·.:.: .. ,,, .. ! I would like to confirm our telephone conversation today that our audit fees for 1993 and 1994 as listed on page 29 of our proposal would not increase by more than the lower of 3 1/2 percent each year or the consumer price index. As we discussed by telephone, if the City is able to find a firm which specializes in auditing relief associations our fee for the City and the HRA would not change. Our Firm has had recent experience in converting a city from a HRA to Economic Development Authority at the City of Robinsdale. It is our understanding that you are considering such a conversion. Enclosed you will find copies of our management letters for the City of Richfield for 1990 and 1991. In addition, you will find copies of the standard board presentation handouts we use on all of our city clients. You asked under what circumstances would our fees be in excess of our proposal. If a key person in the City's finance department left the City during the audit or a adequate replacement was not found prior to starting the audit we would expect to bill the City for any additional time we spent in completing tasks for the audit which would usually be completed by City staff. Typically this billing would be for additional audit staff or senior hours at $40 to $50 per hour. If you have any further questions please do not hesitate to call me at 375-5511. Sincerely, �� Partner CH/kg Enclosure Deloitte Touche Tohmatsu International Detoitte11 To_iiche 0 May 10, 1991 900 Pillsbury Center Telephone: (61 2) 333-2301 Minneapolis, Minnesota 55402-1483 Facsimile: (612) 375-5418 Honorable Mayor and Members of the City Council City of Richfield, Minnesota In planning and performing our audit of the general purpose financial statements of the City of Richfield (the City) for the year ended December 31, 1990, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing an opinion on the general pmpose financial statements but not to provide assurance on the internal control structure. Such consideration 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 condition in which the design or operation 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 to the 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. However, we noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. We did note other matters related to the City's internal control structure and other administrative and operating matters. These recommendations resulted from our observations made in connection with our audit of the City's general purpose financial statements for the year ended December 31, 1990. Our observations and recommendations are presented under the following main captions: Section I -Administrative and Operating Matters Section II -Status of 1989 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, l)�-1-� Member ....... iJ i'i i International SECTION I -ADMINISTRATIVE AND OPERA TING MA I ,I ERS Overall Fiscal Conditions Of Cities: Observation: In late 1990, the National League of Cities issued a regort, City Fiscal Conditions in 1990. that essentially con.firmed the v.idespread idea that U.S. cities are facing severe budgetary pressures. As a result of this revenue -expenditure hnbalance, cities have been responding with revenue enhancement/belt-tightening measures. Over the last three years, the most frequent fiscal adjustments initiated by cities were: Revenues: •Increasing level of fees and charges •Implementing new fees and charges •Increasing property taxes Expenditures: •Reducing the growth rate of operating spending •Contracting out services •Reducing actual capital spending This infonnation was obtained from the above-mentioned report as discussed in the January 1991 "Government Accounting and Auditing Update". Recommendation: As budgetary pressw;es continue io rise for many of the nation's cities, we recommend that the City of Richfield keep abreast of this siruation and take a proactive approach to developing alternate revenue sources. for example, the City could obtain additional revenue by increasing its water and sewer billing rates. A June 1990 summary of the water and sewer billing rates for ten representative Minnesota cities revealed that the City had the second lowest rates. 2 Summary of Water and Sewer Billing Rates for Ten Selected Cities June 1990 (Ranking in ascending order) City Minnetonka Richfield Brooklyn Center -Edina Eagan Chanhassen Brooklyn Park Bloomington -Wayz.ata Robbinsdale Average Gallons used 15,000 30,000 28.50 57.00 30.75 61.50 34.15 41.20 38.98 63.06 40.70 72.95 43.25 88.25 46.50 57.75 46.88 66.38 60.51 120.51 80.41 136.66 45.06 76.53 Toe above rates were effective throughout 1990 and do not reflect January 1991 rate increases that were implemented by a majority of the cities. However, the rate increases did not significantly alter the results of the summary. An increase in water and sewer rates would be one way to obtain additional revenue in a time of budgetary pressures and shrinking local government aid. Employee Health Benefits: Observation: Medical expenditures under the City's health care plans have increased significantly over the past five years. Toe City currently offers three health care plans: PHP, Medcenters, and Group Health. Toe table below represents the trend of health care costs for the City's PHP health care plan on an annual basis: Annual Cost -Single Coverage -PHP _l.9.2.L 1990 1989 1988 -12.8..7 City Cost $1,764 $1,554 $1,380 $ l.255 $1.255 Employee Cost $1,764 $1.554 $1,380 $ 1,255 $1,255 Annual Cost -Family Coverage -PHP 12.2.L 1990 1989 198 8 ....12.81 City Cost $ 2i880 $ 2,520 $2,040 $1�920 $1,800 Employee Cost 1,200 1 074 � 1,152 739 8�9 $4,080 $ 3.524 $3,1 22 $2,Q59 $2,Q59 3 The City pays an average premium for each employee which is determineo by the total cost of all individually selected plans divided by the number of employees. As such, for the single coverage plan, employees contribute zero to the cost of the plan. According to a recent sUI"Yey by A. Foster & Higgins Co . summarized in a January 29, 1991 Wall Street Journal article, average medical plan costs per employee rose to $3,161 last year from $2,600 in 1989 arid were 463 % above 1988 levels of $2,160. If costs continue rising at the current rate, medical benefits will rise to $22,000 per employee by the year 2000. Based upon a recent Deloitte & Touche healthcare survey of 220 Minnesota employers providing traditional health care plans like that provided by the City: •61 % require employee contributions for individual coverage•83% require employee contributions for family coverage•23% of individual coverage costs are paid by the employee•31 % of family coverage costs are paid by the employee Based on this data, the City of Richfield is still under the national average health care cost of $3,161 per employee. Recommendation: As health care costs will continue to increase at a significant rate, the City should consider increasing deductibles and/or increasing the employees' portion of the premiums. Consideration should also be given to other cost-containment programs such as increased communications to employees and wellness programs. Bond Issues: Observation: In 1988_. the City issued thr� bond issues: $1,900,000 of redevelopment bonds, $3,275,000 of refunding redevelopment bonds, and $4,555,000 of refunding improvement bonds. These bond issues are subject to the arbitrage rebate rules in the Tax Reform Act of 1986. The net proceeds of the two refunding bond issues a,,ere invested in state and local government securities and, therefore, are not subject to the rebate requirements. The net proceeds of the $1,900,000 redevelopment bonds were placed into the City's investment pool and, therefore, are subject to the rebate requirements. The proceeds were partially expended inJ989 and 1990; however, the remaining proceeds continue to earn interest subject to rebate. The Tax Reform fa.ct (I'RA) of 1986 made changes in the rules affecting tax-exempt borrowings. The most fundamental change brought by the TRA is the provision requiring rebate to the federal government of the interest earnings from investing bond proceeds in excess of interest costs (referred to as arbitrage). The rebate must be paid to the federal government five years after the date of bond issuance. Recommendation: The rules affecting tax-exempt borrowings and the calculation of the arbitrage rebate are exrremely complex. As recommended in 1989, the City should use an outside expert to perform the computation of the amount of arbitrage owed to the IRS prior to 1993, the year in which the rebate will have to be paid. 4 IBNR Workers' Compensation Claims: Observation: Currently, the City only accounts for workers' compensation claims that have been reported. No estimate is prepared for possible claims incurred but not reported (IBNR). Recommendation: We recommend that the City research the possibility of IBNR claims with the agencies currently tracking the reported workers' compensation claims. Though IBNR claims were not a significant issue for the current year ended, they may have an impact in future years. Inventory Count Sheets: Observation: A difference of ten Jacques Bonet Extra-Dry Champagne bottles ($20.00 in total) was noted between our liquor inventory test counts at the Lyndale location and the City's f"mal physical count sheets and the year-end inventory summary. Recommendation: No change should be made to the inventory count sheets after the count has been taken. If reason for a change does exist. the reason and amounts of the change should be clearly documented, approved by the finance manager, and communicated to all individuals involved with the physical count Ice Arena and Swimming Pool Operations: Observation: The results from operations for the ice arena and swimming pool are currently being recorded in the general fund. Due to this: •The loss from operations is covered by the general fund. •Depreciation expense for the buildings and equipment is not charged against operations. Generally accepted accounting principles indicate that when operations are financed and operated in a manner similar to private business enterprises -where the intent of the governing body is that the costs (expenses, including depreciation) of providing a service be financed or recovered mainly through user charges; or where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate -the use of an enterprise fund classification is appropriate. 5 For the City to properly set user fees, a determination of the cost of providing the service should be made. Results from operations for the past three years are summarized as follows: 199 0 1989 1988 Ice Arena Revenues $ 260,340 $ 255,146 $ 261,667 Expenses ( excluding depreciation) 288,882 280,293 288,15Q Net loss before depreciation (28,542) (25,147) (26,483) Less depreciation 42.068 42,068 42,068 $ (70,610) $ (67,215) $ (68,551) Swimming Pool- Revenues $ 101,111 $ 99,874 $ 110,049 Expenses ( excluding depreciation 125.242 131,659 113,934 Net loss before depreciation (24,131) (31,785) (3,885) Less depreciation $ (24,131) $ C3L785) $ (3,885) For analysis purposes, the swimming pool was considered to be fully depreciated as it was constructed in 1965. From our experience with other governmental clients, it is not unusual for ice arenas and swimming pools to have a net loss after depreciation. However, an attempt is generally made in setting fees to at least achieve positive earnings before depreciation. Recommendation: We recommend that the City consider reclassifying the ice arena and s-wimming pool as enterprise funds. Also, a review of the current user fees should be performed in_an effort to determine _if the fees being charged are consistent with the cost of services being provided. Use of City�Funds to Pay for Telephone Survey: Observation: Toe City requested us to determine whether city funds were used to pay for a "get out the vote" telephone survey conducted by Decision Resources in September of 1990. Decision Resources had been hired by the City to perform a referendum study in February of 1990. Conclusion: We examined the supporting documentation relating to Decision Resources and the study in question. Nothing came to our attention that would lead us to believe that city funds were used to pay for the "get out the vote" telephone survey. 6 Use of City Funds to Pay Travel Expenses for Analysis ofFire Staffing Alternatives: Observation: The City requested that we determine whether city funds were used to pay for travel expenses associated with the analysis of fire staff mg alternatives. Use of city funds for this purpose was prohibited on August 14, 1989. Conclusion: We examined expense reports for the former Fire Chief from August 15, 1989 to December 31, 1990. Nothing came to our attention that would lead us to believe that city funds were used to pay for travel expenses associated with the analysis of fire staffing alternatives subsequent to the prohibited date. IncorQOration of the HR.A Report into�the 1991 CAFR: Observation: The City currently prepares both a comprehensive annual financial report and a separate HRA report. The CAFR contains the HR.A f"mancial information. Recommendation: We recommend that the City incorporate the HR.A report within the 1991 CAFR as a separate section. Duplication of effort could be avoided as all of the HRA's f"mancial information is already included within the City's CAFR. Besides saving on personnel costs, the City could also save approximately $3,500 in audit fees if a separate HRA report was not issued. 7 SECTION II -STATIJS OF 1989 RECOMMENDATIONS Federal Assistance: 1989 Recommendation: To ensure ongoing compliance with requirements of the Single Audit Act, we recommend that city personnel prepare a summary at year end of all federal funds received. 1990 Status: A schedule of the federal funds was prepared by city personnel at year end. The recommendation was fully implemented. � 1989 Recommendation: Cash deposits should be made on a daily or weekly basis, depending on the balance on hand, as a safeguard against theft or loss. 1990 Status: Deposits were made on a more timely basis throughout 1990. The recommendation appears to have been implemented. 8 Deloitte& Io-ucJie 0 May 8, 1992 Honorable Mayor and Members of the City Council City of Richfield, Minnesota r--Lc n, n LL,,le 4300 Norwest Center Telephone: (612) 344-0200 90 South Seventh Street Facsimile: (612) 339-6202 Minneapolis, Minnesota 55402-4150 We have audited the general purpose financial statements of the City of Richfield (the City) for the year ended December 31, 1991 and have issued our report thereon dated May 8, 1992. In connection therewith, we submit this Commentary Report containing our observations and recommendations concerning administrative and operating matters which resulted from our audit of the City's fiscal 1991 general purpose financial statements, as set forth in Section I. The status of the 1990 recommendations is presented in Section II. The comments and recommendations contained in this letter are intended to be constructive in nature and should be re.ad in that context. In working together with the City's Finance Department, we feel our objectives are mutual; namely, the improvement of internal accounting controls and administrative and operating procedures to the extent they are both efficient and effective in accomplishing the financial reporting objectives of the City. This report is intended solely for the use of management and the City Co uncil and should not be used for any other purpose. We will be pleased to discuss these recommendations with you and, if desired, to assist you in implementing any of them. Yours truly, (Y�-1-� Member D RTlnternational SECTION I -ADMINISTRATIVE AND OPERATmGIMAI LERS General Fund Programs: Observation: As state revenue sources are decreased, the State will be looking at cities' :financial conditions in an effort to cut state spending. This procedure bas already been implemented with school districts whereby the State looked at fund balances, particularly in the general fund, as an area to decrease funding. The general fund of the City has an unreserved fund balance of $2.2 million as of December 31, 1991 which is approximately 18% of 1992 budgeted general fund expenditures. This fund contains several programs sueh as parks and recreation, the swimming pool, ice arena, community center, etc. which directly or indirectly benefit the community or provide a central service to the City. These activities could be transferred to other fund types, -as applicable. Recommendation: We understand city management has been studying fund balance levels and is considering moving some of the areas noted above to other fund types. We recommend that the City continue to review this area in light of the current state environment GASB No, 14 -The Financial Reporting Entity: Observation: The Governmental Accounting Standards Board (GASB) bas recently issued Statement No. 14 regarding the reporting of financial entities. The Statement is effective for financial statements for periods beginning after December 15, 1992 and applies to financial reporting by primary gove,mments and to the separately issued financial statements of governmental component units. As defined in GASB No. 14, a primacy government is any state government or general purpose local government (municipality or county). Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. Also, component units can be other organizations for which the nature and significance of their relationship with a primary government is such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. For the City of Richfield, the Housing and Redevelopment Authority (HRA) bas been deemed to be a component unit of the City. Under GASB No. 14, the reporting of component units will change depending on the nature of the relationship of the component unit to the primary government The component unit's financial information will be included (blended) in the reporting entity's financial statements in either of these circumstances: a.The component unit's governing body is substantively the same as the governing body of the primary governmeDL b.The component unit provides services entirely, or almost entirely, to the primary government or otherwise exclusively, or almost exclusively, benefits the primary government even though it does not provide services directly to it. 2 If neither of these circumstances is met, the component unit's financial information is reported by discrete presentation. Under discrete presentation, the component unit financial data is reported in a column separate from the financial data of the primary government. Recommendation: The City should evaluate the requirements of GASB No. 14 in order to determine whether the HR.A meets the criteria for blended or discrete presentation. This Statement will have implications for the 1993 audit Cash and Investment Management: Observation: The City has approximately $500,000 of investments classified in category three of the custodial credit risk categories for investments. This represents an investment purchased through a bank which holds the related investment in its custodial account at the Federal Reserve which does not specifically designate the investment in the City's name. This investment is insured for up to $25,000,000 by a financial institution bond policy which covers such things as forgery, alteration of securities, dishonest employees, and on-premise burglary, robbery, or misplacement; however, it does not cover bankruptcy. Background: In December 1991, the Governmental Accounting Standards Board issued an implementation guide dealing with these risk categorizations. Under these new implementation guide lines, the financial institution bond policy discussed above is no longer considered adequate for category one presentation (which the City used in its 1990 annual report) because the bond policy does not cover bankruptcy. Recommendation: The City should review its investment procedures and determine whether the benefits derived from its current procedures with respect to this investment outweigh the additional costs associated with improving the overall custodial credit risk. 3 SECTION II -STATUS OF 1990 RECO:M:MENDArI'IONS Overall Fiscal Condition of Cities: 1990 Recommendation: As budgetary pressures continue to rise for many of the nation's cities, we recommended that the City of Ric.bfield keep abreast of this situation and take a proactiveapproach to devel9Ping alternate revenue sources. For example, the City could obtain additional revenue by increasing its water and sewer billing rates. 1991 Status: During the 1992 Proposed Budget process, the City considered a number of revenue enhancements. License and permit fees were increased, water rates increased by 5%, and sanitary sewer rates increased by 13.8%. Employee Health Benefits: 1990 Recommendation: As health care costs continue to increase at a significant rate, the City should consiaer increasjp.g deductibles and/or increasing the employees' portion of the premiums. Consideration Should aiso be given to other cost�ontainment programs such as increased communications to employees and wellnes s programs. 1991 Status: In 1992, some of the burden of family health care costs is being shifted to the employees. The City's contn"bu.tion will not increase in proportion to the increase in premiums for the employee. Plan members with individual coverage will continue to contribute nothing to the cost of coverage. Bona Issues: 1990 Recommendation; The rules affecting tax-exempt borrowings and the calculation of the arbitrage rebate are extremely complex. At. recommended in 1989, the City should use an outside expert to perform the computation of the amount of arbitrage owed to the IRS prior to 1993, the year in which the rebate will have to be paid. 1991 Status: The City engaged the services of an outside expert to perform the arbitrage calculation for 1991. 4 IBNR Workers' Compensation Cl aims: 1990 Recommendation: We recommended that the Ci!Y research the possibility of IBNR claims with the agencies currently tracking the reported workers' compensation claims. 1991 Status: Berkley Administrators calculated the potential IBNR claims for 1991. The accrual was recorded by the City. Inventcny Count Sheets: 1990 Recommendation: No change should be made to the inventory count sheets after the collllt has been taken. If reason for a change does exist, the reason and amounts of the change should be clearly documented, approved by the :finance manager, and communicated to all individuals involved with the physical count. 1991 Status: During the current-year audit, no changes were made to the inventory count sheets subsequent to the inventory count Ice Arena and Swim.ming Pool Operations: 1990 Recommendation: We recommended that the Oty consider classifying the ice arena and swimming pool as enterprise funds. Also, a review of the current user fees should be performed in an effort to determine if the fees being charged are consistent with the cost of services being provided. 1991 Status: Toe City is in the process of creating a recreation enterprise fund combining the pool, ice arena, and golf course. Fees will be revised in conjunction with this process. Incoqx>ration of the HR.A Rewrt into the t 991 CAFR: 1990 Recommendation: We recommended that the City incorporate the HR.A report within the 1991 CAFR as a separate section. The City could save on both personnel and audit costs if a separate HRA report was not issued. 1991 Status: The HR.A report will be included within the CAFR for 1991. No separate report will be issued. 5 Fund Balance at 12/31/91 Less Property CITY OF RICHFIELD Operating Fund Status December 31, 1991 vs. December 31, 1990 (in thousands) Special General Revenue Enterprise Fund Funds $ 2,237 $ 2,558 m .._ - $ i;:i,=----_ i;;:i I c.= __ ------c::!1 Cl Funds 17,429 (11,764) Internal Service Funds $ 6,075 (1,997) Liquid Fund Balance $ 2,237 $ 2,558 $ 5,665 $ 4,078 Fund Balance at 12/31/90 $ 2,298 $ 2,585 $ 16,860 $ 6,300 Less Property '-,; -t...;;:: -' (11,677) (2,212) Liquid Fund Balance $ 2,298 $ 2,585 $ 5,183 $ 4,088 Net Increase 1 Tota1= $ 28,299 (13,761) $ 14,538 $ 28,043 (13,889) $ 1 4,154 i 384 CITY OF RICHFIELD Selected Ratios 12/31/91 1991 C A.Population 35,544 B.Number of Households 16,083 C.Number of Full-time Employees 206 (1) D.Population per Employee 173 E.Households per Employee 78 F.Enteiprise Funds Income (Loss) Before Transfers Liquor $ 541,669 $ Water 311,359 Sewer (89,342) Golf Course 98,682 Storm Sewer 245!646 Net Income $ 131083014 $ Return on Equity Liquor 25.5% (1)Does not include enteiprise fund employees. 1990 ,�-1989 tc:C 35,710 34,876 16,094 15,675 203 200 176 174 79 78 399,833 $ 436,260 176,102 546,300 (85,084) 166,683 65,789 203,873 221 3938 120A34 7783578 $ IA733550 19.9% 21.5% Fire � � Police G.Unfunded Pension Obligation 2 1991 1990 1989 $ 3,603,000 4,451,000 3,879,000 $ 1,848,000 1,648,000 CITY OF RICHFIELD Selected Performance Indicators 12/31/91 Richfield I.Debt Medians Net Debt Per Capita $ 198 Ratio of Net City Debt to Estimated Full Value .60% II.Enteiprise Medians Operating Ratio -'Y-t' ater 75.0% Sewer 119.2% (1)Per 1992 Moody's Selected Indicators of Municipal Performance. 3 National averageO) $ 596 1.3% 64.6% 62.4% CITY OF RICHFIELD I.Debt Medians Net Debt per Capita - Ratio of Net Debt to Estimated Full Value - Il. Enterprise Medians Operating Ratio Performance Definitions 12/31/91 lmJ!rovement Bonds Estimated Population Debt Service Funds on Hand Debt Service Improvement Bonds -Funds on_Hand Estimated Market Value Operating Expenses -Depreciation Operating Revenues 4 7.0% CITY OF RICHJFIE�D Ill -":JI General Fund Revenues 10.2% 38.9% 10.0% Total Revenues 1991 $11,705,000 36.7% Total Revenues 1990 $11,749,000 II Charges for Services 41.9%� 10.3% 8.3% 39.5% Total Revenues 1992 $12,132,000 � Intergovernmental II Fines, Forfeits, Licences, ftJI Property TaxPermits, and other 51.5% 1.7% 35.1% CITY OF RICHFIE�D General Fund Expenditures 2.1% 36.0% 49.2% 12.7% Total Expenditures 1991 $11,938,000 Total Expenditures 1990 $11,840,000 50.1% 2.0% 12.3% 34.6% Total Budgeted Expenditures 1992 $12,131,000 II Public Safety II Community Services � Community Development � Administrative Services �:fzl and General Government --.J CI�Y OF RICHFIELD ' c::, General Fund Revenues/Expenditures Per Capita 5 00 � __:: --. ---__ -r= = z • =-� 400 --300 � ro �200 100 o-1991 1990* I II Revenues � Expenditures I -c:=:----r*Adjusted for inflation using the CPI 1989 00 800 ,..-._ 600 ....... ....... 400 ....._ 200 CITY OF RICHFlfiLD General Fund Revenues/Expenditures Per Household 1991 1990* I Ii Revenues � Expenditures I *Adjusted for inflation using the CPI 1989 Year ending De_cember 31 1987 1988 1989 1990 1991 CITY OF RICHFIELD Unreserved General Fund Balance Compared to Annual Expenditures ,,. ,- Next year Unreserved annual _ fund balance expenditures $ 3,925,573 $ 10,484,459 4,364,839 11,139,051 2,261,490 11,840,204 2,244,967 11,938,423 2,185,477 12,130,870 (1) (1) 1992 Budgeted expenditures. 9 Percentage of expenditures 37.44% 39.19% 19.10% 18.80% 18.02% ro 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 CiillY OF RICHFIELD Debt Service Schedule December 31, 1991 .................................................................................................... , ................ . 1992 1994 1996 1998 2000 2002 2004 2006 2008 1993 1995 1997 1999 2001 2003 2005 2007 II Special Assessment Bonds � Redevelopment Bonds II Enterprise Funds ..... ..... Aaa Aal Aa Al A Baal Baa Bal and below Percent of Total 0 CITY OF-1 ,�RlCHFIELD:: National General Obligation Bond Ratings (City of Ricrfield) 10 20 30 40 50 Per Moody's Municipal Issues Report WHERE YOUR STATE TAX DOLLARS GO Minnesota General Fund Spending 1991 (1990) Miscellaneous (Natural Resources, Courts, Economic Development) Fund Balance 3.6% (3.6%) Local Aids and Property Tax Refunds 16.6% (22%) Human Services 18.4% (14%) 9.6% (9.6%) General Government (Agencies) 7.5 0 (7 .5%) �.,......_� Post-Secondary Education 18.0% (18.0%) K-12 Education 26.3% (28%) ••• MANAGEMENT PRACTICES TO A VOID •· Using reserves to balance the budget •, Using short-term borrowing to balance the budget •h Using internal borrowing (long-term) to balance the budget •Selling assets to balance the budget •" Using one-time accounting changes to balance the budget •, Deferrin g pension and employee benefit obligations •·Deferring maintenance expenditures •i-Not costing out nonsalary employee benefits •�Ignoring full-life costs of capital assets 13 To the Honorable Mayor and Members of the City Council City of Oakdale, Minnesota TAUTGES, REDPATH & co.! LTD. CERT:.c·Eo 0 L;8_ ·C' �C�CL ·" :--..:J·. -:-5 Minnesota cities are facing a variety of changes in state funding and property tax funding of government operations. The legislative climate indicates that the State's deficit management policies will continue to have a ripple effect on local government The first part of this report analyzes the actual and proposed changes in funding for cities. This information is presented to define 1) aid cuts and shifts on a State-wide basis and 2) aid cuts and shifts as they specifically affect the City of Oakdale. This report also presents updated trend analysis to illustrate the impact of the changes on the overall funding of basic governmental services of the City. The balance of this report �pdares financial analysis of funds and account balances of the City. Financial areas which may be of particular interest to the City are as follows: Page 1 . The State continues to make significant changes to the property tax and State aid funding systems. 2 2.Special assessments were $8 million at December 31, 1991. Delinquent assessments increased to nearly $1.6 million in 1991 (up 21.5% from 1990).14 3. General Fund Balance increased by $443,000 during 1991. 19 4.Tax increment collections totalled $940,000 in 1991 compared to $465,000 in 1990 and are exceeding budgeted collection levels for some districts.28 5.The City Hall expansion project is progressing according to plan.39 6.Water and sewer operations continue to reflect favorable operating results.45 7.The City's computer system is being re-evaluated.55 8 . The City has been awarded the Certificate of Achievement in Financial Reporting from the Government Finance Officers' Association of the United States and Canada. 56 The financial challenges facing local government in Minnesota continue to increase. We are available to discuss this report with the City upon requesL Respectfully submitted, 7� �/�J4. TAUTGES, REDPATH & CO., LTD. Certified Public Accountants June 24, 1992 -t810 1//�.:eS�a.�P3��_-,..2., • '/�:-:c3�:. .. �,:: .. � 0•1 ........ 7::--:-:��:·4� • -:.·2...:.:2 :.--:--:<C· • =-:�·;_:;_:.. -:.: CITY OF OAKDALE, :MINNESOTA MANAGENfENT REPORT AND RECOM:MENDA TIONS Table of Contents Transmittal Page General and Special Revenue Funds -Summary data and analysis of revenue and expenditures compared to prior periods A ccount Balance An alvsis -A look at changes in various accounts such as cash, investments and receivables Indlvidual Fund/Fund Type Analvsis -Review of significant changes in fund balances and other matters Internal Control Re.pon R ec ommendations Summazy � 1 7 12 19 53 57 �..-V-�-:-/J-i..-CITY OF6AKDALE, MINNESOTA MANAGE!\IBNT REPORT AND RECOMMENDATIONS DECEMBER 31, 1991 l t City of Oakdale, Minnesota Management Report, Page 2 RECENT LEGISLATIVE ACTIONS The State legislature has made a progression of changes in funding cities. The most signifi cant changes staned with the 1988 Legislative session and continued through the 1992 session. Appendix A of this report presents a summary of this Legislation and an estimate of the initial year impact on 1) cities -Statewide; and 2) the City of Oakdale. The 1992 legislative actions impact City finances and affect not only the General Fund, but other funds as well. A summary of 1992 legislative actions which directly impacts the financial operations of cities is as follows: Levy Limits. The 1992 legislature did not change the 1990 law which repeals levy limits starting with taxes payable in 1993. Sales Tax. The omnibus tax bill imposes a sales tax on purchases by local governments. The sales tax becomes effective June 1, 1992. The sales tax rate is 6.5% and generally applies to purchase of goods and certain services. The annual impact of sales tax on the City of Oakdale is estimated as follows: Estimated Qualifying Pass Purchases Through Fund Amount Tax MWCC Total Genel'alFund $645,000 $41,900 $41,900 Enterprise 200,000 13,000 $11,000' 241000 Total _$845,000_ $54,900 Sll.000 _ �_j65,900 Water Connection Fee. The omnibus finance bill includes a provision which requires cities to collect a $5.21 fee from all connections to which the City supplies water. This fee will be remitted to the Department of Revenue and will be used for testing water supplies. City of Oakdale, Minnesota Management Report, Page 3 Financial R�ortin� In 1987, the State established the Legislative Commission on Planning and Fiscal Policy. Among other things, the Commission was to conduct a continuing study of State-local finance, analyzing and making recommendations to the legislature on issues including levels of State support for political subdivisions, basic levels of local need, balances oflocal revenues and options, relationship oflocal taxes to individuals' ability to pay, and financial reporting by political subdivisions. Additionally, the Commission was to: "No later than November 15, 1991, the commission shall make recommendations to appropriate stan�g committees of the legislature on any changes in wtlform ac.counting and financial reporting methods necessary to assure public and legislative oversight of expenditures by cities, counties, towns, and special service districts. The recommendations shall consider oppommities for on-line ac.cess by appropriate state officers to political subdivision accounts. In preparing these recommendations, the commission shall consult with the state auditor, the legislative auditor, and the commissioners of finance and revenue." (MS 3.885 subd. 8) In February 1992, a report was issued titled "Improving Local Government Financial Reporting in Minnesota." One of the recommendations of this report was standardization of ac.counting for cities. Legislation regarding standardization should be carefully monitor because it may 1) potentially allow the State to target aid reductions to cities (and in effect reduce their reserve balances); and 2) funher decay independence and autonomy of cities and would potentially result in an eroded decision making process at the local level. 1 f I City of Oakdale, Minnesota Management Repon, Page 4 The estimated effects of the 1988 through 1992 legislative changes in State-wide city funding is as follows: State Totals for Cities {in thousands) Homestead and Tax Base Disparity Government Agricultural Equalization Reduction Aid Credit Aid Aid Aid Total 1988 $297,037 $111,873 $408,910 1989 376,376 106,308 $20,853 503,537 1990 317,343 143,523 $19,513 14,201 494,580 1991 283,640 155,690 19,476 14,500 473,306 1992 • 279,700 173,191 19,427 14,028 486,346 •estimated A chan of the above major funding categories to Cities is as follows: I S600,000 $500,000 $400,000 $300,000 I $200,000 SI00,000 so 1989 1990 1991 1992 estimaied lncrease/(Deaease) Amount Percent $94,627 (8,957) (21,274) 13,040 State Funding to Cities (in $1,000) (1.78)% (4.30)% 2.76% Im Equalization •Disparity .HACA OLGA The above table and graph do not reflect the "loss" to cities related to the sales tax legislation. The annual impact is estimated at $68 million. The net impact on cities is, therefore, a $51 million decrease as opposed to the above illustrated increase of $13 million. City of Oakdale, Minnesota Management Repon, Page 5 The 1986 through 1992 legislative changes' have imp�cted the funding of the City of Oakdale as follows: Ci� of OakdaJe Homestead and Tax Base Government Agricultural Equalization Aid Credit Aid Aid Total Q)ecrElse) 1986 $615,024 $467,071 $1,082,095 1987 649,820 422,729 1,072,549 ($9,546) 1988 649,812 485,762 1,135,574 63,025 1989 956,413 497,609 1,454,022 318,448 1990 678,783 641,314 $33,460 1,353,557 (100,465) 1991 551,878 734,033 38,312 1,324,223 (29,334) 1992 •537,022 831,501 33,176 1,401,699 77,476 •Estimated As shown above, the City is anticipated to receive an increase in State aids for 1992. However, this aid increase is offset by the extension of sales tax on purchases by cities. A graph of State aids (before the impact of sales tax) of the City of Oakdale compared to Statewide totals is as follows: The City of Oakdale has had greater State cuts than the Statewide cuts to cities as follows: City of Oakdale $1,600,000 S1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 State Totals (in $1,000) $500,000 $400,000 $300,000 $200,000 $100,000 so ( 1-n.--:31 I mm t r�a , , .. we I g;,-w-""1 1 t�";( 1 I EW! I so 1986 1987 1988 1989 1990 1991 1992*estimated _ Equalization Aid @w//#/4;2 Homestead Credit f::-,,,,A,:-Vf.;}. f LGA •Statewide Totals (in 1.()00) City of Oakdale, Minnesota Management Report, Page 6 A key variable in calculating LGA is the "revenue base". The revenue base consists of a city's total property tax levy plus LGA. The revenue base is a concept which has been used to calculate funding of cities for a number of years. Currently, revenue base is the basis for calculating aid cuts. The revenue base for the City of Oakdale has been as follows: Property Percent Tax LGA Total Increase 1988 $2,159,566 $649,812 $2,809,378 1989 2,238,145 956,413 3,194,558 13.7% 1990 2,683,379 678,783 3,362,162 5.2% 1991 2,841,668 551,878 3,393,546 0.9% 1992 •3,245,439 537,022 3,782,461 11.5% •estimated The calculation of LGA for the City of Oakdale for the last three years is as follows: Initial aid increase Prier year aid Reduction under 1991 law (4.034% of 1991 revenue�) 1 Reduction fcx-State demographer costs Subtotal Aid transfe.r to schools (3.4% of net tax capacity) Final Aid Aid cuts subsequent to Budget adoption and levy certification: 1990 legislative cut (1.53% of 1990 Revenue Base) 1991 legislative cut (2.052% of 1991 Revenue Base) 1991 legislative cut (1.60% of 1991 Revenue Base) Adjusted aid 1990 1991 $135,824 so 957,576 678,667 p.036)(33) 1,092,364 678,634 !361.458)0 730,906 678,634 (52,239) (74,633) (52.123) �$678.667 _ �$551_,87_L 1992 so 679,819 (141,856) (941) 537,022 0 537,022 $537.022 City of Oakdale, Minnesota Management Report, Page 7 GENERAL AND SPECIAL REYEl'{lJE flU\1DS The General and Special Revenue Funds of the City are maintained to account for the current operating and capital outlay expenditures common to all cities. These basic services include (but are not limited to) public safety, public works, recreation and general government. State aids (including local government aid, homestead credit and other minor State aids) and local property taxes used to finance the General and Special Revenue Funds of the City of Oakdale were as follows: Total State Aids All State Aids Pro:E!e!!i'. Taxes and Pro�!!i'. Taxes Other Revenue Ye.ar Amount 1982 $647.353 1983 748,832 1984 771,183 1985 782,580 1986 956,769 1987 1,081,780 1988 1,091,572 1989 1,443,752 1990 1,310,208 1991 1,258,840 Sl,800,000 S1,600,000 S1,400,000 S1,200,000 Sl,000,000 $800,000 $600,000 $400,000 $200,000 so Percent Amount Percent Amount Percent Amount 48.32% $398,747 29.76% $1,046,100 78.08% $293,603 49.91% 462,095 30.80% 1,210,927 80.70% 289,569 39.22% 617,915 31.43% 1,389,098 70.65% 577,004 34.89% 582,213 25.95% 1,364,793 60.84% 878,509 35.58% 801.325 29.80% 1,758,094 65.38% 930,890 34.88% 973,579 31.39% 2,055,359 66.26% 1,046,398 33.48% 1,089,044 33.40% 2,180,616 66.88% 1,080,024 36.32% 1,130,125 28.43% 2,573,877 64.74% 1,401,741 30.28% 1,379,810 31.88% 2,690,018 62.16% 1,637,494 29.60% 1,436,209 33.77% 2,695,049 63.37% 1,557,975 General & Special Revenue 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 E1 State Aids � Property Taxes B All Other Percent 21.92% 19.30% 29.35% 39.16% 34.62% 33.74% 33.12% 35.26% 37.84% 36.63% City of Oakdale, Minnesota Management Repon, Page 8 The recent increase in other revenues temporarily reduces the City's dependence on the two primary funding sources -propeny taxes and state aids . The previous "other revenue" increases, however, are directly related to increases in City construction/development from 1989 through 1991 which, in turn, is partially the result of favorable financial conditions which spur develop ment. If development declines, the absence of the above other revenues could have a significantly adverse effect on the operating funds of the City if: •State funding doesn't increase at levels adequate to meet City growth; and/or, •Propeny tax levies are restricted by statute during periods in which the City requires replacement revenue; and/or, •The City is unable to reduce programs (expenditures) without jeopardizing base acceptable service levels. As discussed above, permits and other such construction related revenue has significantly supplemented the City's General Fund revenues over the past several years. The decrease in State funding, however, if comb ined with reductions and other revenue sources, could disrupt the funding of operations of the City and require the City to reduce reserve balances. The 1993 removal of propeny tax levy limits is favorable for an expanding City such as Oakdale. Growth cities were adversely effected by restrictions in propeny tax levies even during periods in which rapid growth required increased service levels. We recommend that the City carefully monitor state actions which directly and indirectly affect the funding of City operations. City of Oakdale, Minnesota Management Report, Page 9 State aids for the General and Special Revenue Funds have consisted of the following amounts from 1982 through 1991: Government HOOlestead All � % � Year Aid Creot Other Totals �) (Decrease) 1982 $434,683 $152,067 $60,603 $647,353 ($49,578) (7.00%) 1983 479,939 188,453 80.440 748,832 101,479 15.68 1984 518,369 203,715 49,099 771,183 22,351 2.98 1985 549,105 172,931 60,514 782,550 11,367 1.47 1986 615,024 239,600 102,145 956,769 174,219 22.26 1987 649,820 276,661 155,299 1,081,780 125,011 13.07 1988 649,812 329,942 111,818 1,091,572 9,792 0.91 1989 956,413 323,189 164,150 1,443,752 352,180 32.26 1990 678,783 446,031 185,394 1,310,208 (133,544) (9.25) 1991 551,878 523,650 183,312 1,258,840 (51,368) (3.92) A graph of the above State aids (with a comparison to property tax amounts) is as foliows: $1,600,000 $1,400,000 $1,200,000 $1,000,000 General & Special Revenue Funds S800,000 $600,000 $400,000 $200,000 $0 1983 1984 1985 1986 l�·�.�..,§».�'!:½4' Local Gov'nt f½w.¢'½//4:1 Homestead Aid Credits 1987 1988 1989 Olher State Rev. 1990 Sl,600,000 $1,400,000 $1,200,000 Sl,000,000 $800,000 $600,000 $400,000 $200,000 so 1991 - -Property Taxes Beginning in 1990, the City received less State aid than property tax funding. This is a reversal of past trends and illustrates the change in State policy regarding funding of operations of Minnesota cities. City of Oakdale, Minnesota Management Report, Page IO Revenue of the General and Special Revenue Funds for the past three years has been as follows: 1991 1990 1989 Descri:etion Amount PCTCent Amount Percent Amount Taxes Sl,436,209 33.77% $1,379,810 31.88% Sl.130,125 Licenses and permits 444,591 10.45% 472,464 10.92% 382,291 Intergovernmental revenue: State 1,258,840 29.60% 1,310,208 30.28% 1,443,752 Local 79,226 1.86% 70,839 1.64% 38,272 Charges for services 586,974 13.80% 577,882 1335% 562,997 Interest on invcsoncnts 133,191 3.13% 186,836 4.32% 194,135 Olhcr 313.988 7.38% 329.473 7.61% 217.662 Totals $4,253,019 100.00% $4,327,512 100.00% S3,969.234 A graph of the above amounts is as follows: $1,600,000 $1,400,000 Sl,200,000 Sl,000,000 General & Special Revenue Funds $800,000 S600,000 S400,000 $200,000 so Property Taxes ·swe Aids Charges fer Services Licenses & Permits •1991 � 1990 m 1989 Interest All Omer Detail of the above revenue is presented in Statements 7 through 17 of the 1991 Comprehensive Annual Financial Repon. Percent 28.47% 9.63% 36.37% 0.96% 14.18% 4.89% 5.48% 100.00% City of Oakdale, Minnesota Management Repon, Page 11 Expenditures of the General and Special Revenue Funds for the past three years are as follows: Expenditure Tvoe: Current: General government Public safety Public works Community service and recreation Capital outlay Debt service Totals 1991 Amount Percent $1,129,708 30.30% 1,681,647 45.10% 674,473 18.09% 107.528 2.88% 133,882 3.59% 1.356 0.04% $3.728.594 100.00% 1990 1989 Amount Percent Amount $1,139,956 32.35% $991,553 1.571,266 44.58% 1,352,096 609,215 17.29% 549,547 105,406 2.99% 120,605 98,371 2.79% 100,936 $3.524.214 100.00% $3.114.737 A graph of the above amounts is as follows: $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 General Government General & Soecial Revenue Funds Public Safety Public Works Community Serv. & Recreation •1991 � 1990 El 1989 Capital Outlay Details of the above expenditures are presented in Statements 7 through 17 of the 1991 Comprehensive Annual Financial Repon. Percent 31.83% 43.41% 17.64% 3.87% 3.24% 100.00% City of Oakdale, Minnesota Management Repon. Page 12 ACCOUNT BALANCE ANALYSIS OF THE COMBINED FINANCIAL STATEMENTS The combine.d financial statements of the City of Oakdale are presente.d in Statements 1 through 5 of the 1991 Comprehensive Annual Financial Report. The following comments relate to the Combined Balance Sheet-All Funds (Statement 1). Cash and Investments Cash and investments were as follows at December 31, 1991 and 1990: Checking December 311 1991 1990 ($211,850) ($64,311) Ircrease �) ($147,539) Cash and change funds Investments 364 364 22.490.088 22.797 ,368 0 (307,280) ($454,819) Totals $22.278.602 $22,733,421 The overdraft in the checking balance reflects the City's policy of minimizing uninvested cash balances. This was a book overdraft only (not a bank overdraft). Interest bearing checking reduces the imponance of transferring cash to checking on dates of the anticipated clearing of checks as had been the past practice of the City. Investments consisted of the following amounts at December 31, 1991 and 1990: Descri12tion 1991 1990 Federal securities $8,434,219 $5,417,114 Cenific:ates of deposit 5,958,000 4,832,047 lnvesnnent funds 1,580,145 1,580,145 Prime commercial paper 6,221,062 9,999,101 Bankers � 296,662 968,961 Total $22 1490,088 S2217971368 City of Oakdale, Minnesota Management Repon, Page 13 Interest earned on investtnents totaled just over $1.58 million for both 1991 and 1990. Interest earned on invesnnents was as follows for the past several years: Interest Earnini?s Dedicated Genezaland Debt Service Construction Enterprise Year Tow· S�ialRevenue Funds T�Funds Funds 1982 $354,168 $71,933 $264,211 $13,809 S4,215 1983 295,596 68,046 214,310 13,240 1984 366,507 75,134 279,278 12,095 1985 529,931 103,970 425,558 403 1986 650,943 91,129 417,874 141,940 1987 697,398 109,297 388,666 190,581 8,854 1988 1,000,837 107,507 623,378 223,793 46,159 1989 1,585,940 194,135 855,519 426,245 110,041 1990 1,585,971 186,836 896,426 342,803 159,906 1991 1,514,402 133,191 816,871 380,719 183,621 The interest earnings of the General and Special Revenue Funds indicate that the City is maintaining operating reserves in these funds. Operating reserves are mandatory to compensate for cash flow timing differences in the receipt of major revenue sources and for various other purposes as discussed later in this repon (see "General Fund"). The interest earnings of the City's Enterprise Funds had been significantly reduced since 1979 and fully eliminated from 1983 to 1986. This reflected declining operating results. The City has taken action to correct this situation (see later commentary). The above listed interest earnings for the past several years reflect the return of positive average cash balances. City of Oakdale, Minnesota Management Repon, Page 14 Delinguem Tax�s Receivable Propeny tax collections were as follows for 1987 through 1991: 1991 1990 1989 Delinquent balance -January 1 $104,029 $91,927 Sl25,066 Current levy 2.841.668 2 1683.379 2.2381145 Subtotal 21945,697 217751306 2.363.211 Receipts: Property owners 2,047,790 1,993,893 1,754,868 State 730,238 670,428 4971(:l'f} Total receipts 21778.028 2.664.321 2.252.477 Unadjusted balance 167,669 110,985 110,734 Adjust to County balance (54,378) (6,956) (18,807) Delinquent balance -December 31 $113.291 $104,029 $91.927 =�-� Percent of current levy collected 97.76% 99.29% 100.64% 1988 1987 S90,008 $120,888 2,159.566 1,950,003 2.249.574 2.070.891 1,624,874 1,501,249 493,180 4271917 21118.054 1,9291166 131,520 141,725 (6,454) (51,717) $125.066 $90.008 98.08% 98.93% The City continues to have an excellent property tax collection rate. This is a very positive financial indication, especially for a growth city such as Oakdale. Special Assessments Receivable Special assessments receivable consisted of the following amounts at December 31, 1991 and 1990: Description Delinquent Defemd Special deferred Tax Forfeit Due from County Total December 31, 1991 1990 $1,574,779 $1,295,870 5,186,655 5,952,595 63,747 34,285 919,718 863,043 215,014 143.275 Increase (Decrease) $278,909 (765,940) 29,462 56,675 71,739 $7,959,913 $8.289,068 ($329,155) The volume of assessment activity has increased substantially over the past several years. This is indicative of greater levels of development within the City. • City of Oakdale, Minnesota Management Repon, Page 15 A summary of assessment collections for the past several years is as follows: Current Current Collection Ye.ar Portion Amount Percent 1984 $466,914 $341,734 73.19% 1985 827,249 512,766 61.98% 1986 1,219,404 789,144 64.72% 1987 1,532,096 1,274,422 83.18% 1988 1,423,148 983,005 69.07% 1989 1,649,765 987,511 59.86% 1990 1,800,248 1,030,355 57.23% 1991 1,828,908 1,186,941 64.90% A graph of the above schedule is as follows: $2,100,000 $1,800,000 $1,500,000 $1,200,000 $900,000 $600,000 $300,000 so 1985 1986 1987 1988 Current and Delinquent Collections Amount $364,667 550,878 964,090 1,517,692 Percent 1,217,420 1,154,961 1,346,448 1,523,508 78.10% 66.59% 79.06% 99.06% 85.54% 70.01% 74.79% 83.30% Assessment Collections 1989 1990 Delinquent Balance $172,712 412,038 594,429 585,941 663,656 950,660 1,295,870 1,574,779 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% rcca .. m·c I 0% 1991 Current Portion Wffffm'& Current ffi#il.¥Jb,f\j Total Collections Collections ---·Percent Collections The above schedule indicates that the current collection rate was 57% in 1990 and 65% in 1991. The ability of the City to collect special assessments is vital to the financing of the Special Assessment Debt Service Funds of the City. The primary funding of these debt payments is special assessments. Timely collection of special assessments are required to assure timely availability of cash to meet the scheduled debt payments. If the City experiences high delinquency rates, the funds which rely on assessments may be unable to meet scheduled bond maturities on a timely basis. We recommend that the City continue efforts to monitor the collection rate and City of Oakdale, Minnesota Management Repon, Page 16 provide supplemental financing if assessment collections are not adequate to meet bonded debt payments. The recent Debt Service Study (based on December 31, 1990 data) provided the City with financial projections which measured the potential affects of delinquent assessments. Full or partial updates of the study are planned periodically. Prepayments temporarily provide cash and in the short term, favorably affect the City's ability to meet bonded debt payments. If, however, prepayments are invested at significantly lower investment rates, and/or consumed to meet current debt requirements, the City incurs a "loss" because the interest which would have been earned on the assessment amount is not adequately replaced by investment income. Special deferred special assessments consist of amounts which are not under the normal collection procedures. A summary of the 1991 activity in these various categories is as follows: Tax GreenAaes 1991 Activity Total Forfeit and Other Balan� -December 31, 1990 $897,328 S863,043 S34,285 Additions 94,306 64,844 29,462 Deletions 8,172 8,172 Balan� -December 31, 1991 S983z462 S919,715 $631747 Fund# Description 40 Closed Bond Sinking $8,579 $8,579 45 1969 Improvements $22,047 1969 Improvements 558 558 47 1969 Improvements 5,139 4,425 714 49 1971 Improvements 5,178 5,178 50 1971 Improvements 10,008 7,716 2,292 51 1973 Improvements 1,322 1,322 55 1976 Improvements 2,320 2,320 56 1989 Improvements 3,615 3,615 62 1986 Improvements 3,094 3,094 63 Refunding Bonds of 1986 917,852 886,523 31,329 69 1988 Improvements 3,750 J,750 Total S96Iz415 S9191715 $63.747 These amounts have been deferred pursuant to Minnesota Statutes and the tax forfeit system. Delay in the payment of these amounts (or cancellation of the receivable) affects the cash flow schedule of the related debt service funds to meet debt payments. .. City of Oakdale, Minnesota Management Report, Page 17 Tax forfeit assessments increased by $407,264, $171,224 and $66,946 in 1989, 1990 and 1991 respectively. These increases are primarily related to the Sun Meadows Development. Tax forfeit assessments generally occur under the following circumstances: 1.Adequate developer guarantees are not secured which allow the City to collect on letters of credit or other forms of security. 2.The value of the improvements is not commensurate with the increased value of the property. 3 . Increased mongage interest rates and/or other adverse economic conditions hinder the development of the improved propeny. The 1990 Debt Service Study Update reviewed the impact of the above tax forfeit assessments and recommended courses of action for the City to consider. The City has reviewed the areas of tax forfeit assessments to determine the probability of collections on such parcels. Minnesota Statute section 270. 708 deals with the distribution of proceeds of tax forfeit propeny sales. We recommend that the City monitor the County's progress in converting tax forfeit parcels to cash. Fixed Assets During 1990, the City implemented a fixed asset system. Certain assets are now tagged and computer software has been acquired. Advantages of maintaining such a system include the following: •Availability of insurable value amounts.•Increased. safeguarding of movable assets.•Availability of database to determine capital equipment replacement needs.•Improved financial reporting. Maintenance of the system for purchases, sales.. disposals and transfers is now maintained on the City's in-house computer system for periodic updates. The system requires City staff time to update and maintain the system on a timely basis. Several areas of programming and/or procedural refinements were identified in the 1990 Management Report. The City addressed the system's shon comings with the software developer to determine if there are procedures or software amendments which are available to correct the deficiencies. _The City is considering a conversion to an alternate system in 1992/93. City of Oakdale, Minnesota Management Repon, Page 18 Bonds Pa,vable The Combined Schedule of Indebtedness is presented in Exhibit 3 of the 1991 Comprehensive Annual Financial Report. Bonds outstanding at December 31, 1991 and 1990 were as follows: December 31, h:lcrease Description 1991 1990 (Decrease) General obligation bonds S9,915 ,000 $10,135,000 ($220,000) Special assessment bonds 17,365,000 18,955,000 (1,590,000) HRA Revenue Bonds 2,300,000 2,300,000 Totals _$29,580,000 $29 ,0901000 $490,000 Included in the general obligation bonds are the $1,920,000 Refunding Bonds of 1989 as well as the two bond issues (1985 Water Tower Bonds and the 1985 Public Works Garage Bonds ) which were refunded in 1989. All three bond issues must be included on the City's financial statements in accordance with reporting standards for crossover refunding bond issues. The HRA Revenue Bonds were sold to fund the City Hall Expansion Project The bonds are to be repaid by the City through annual lease payments to the HRA. The City's funding source for lease payments is anticipated to be available from matured bond fund balances. Arbitraee Re�ations Federal law prohibits excess earnings on bond proceeds maintained in construction or debt service funds. The regulations are complex and for "large issuers" (over $5 million of taxable bonds issued in one year) there are rebate requirements. The City of Oakdale has not issued greater than $5 million of taxable bonds in one year and therefore is not required to meet restrictive regulations. Compensated Absences Pa,yable Compensated absences payable consist of employee benefits for vacation and severance pay which are vested by the employee and for which payment is prob able. Compensated absences totaled $134,108 and $123,752 at December 31, 1991 and 1990 res pectively. City of Oakdale, Minnesota Management Report, Page 19 GENERAL RIND The financial statements of the General Fund are presented in Statements 6 through 9 of the 1991 Comprehensive Annual Financial Repon. The fund balance of the General Fund increased by $443,084 in 1991 as follows: Budgeted increase in fund balance so Actual revenue over/(under) budgeted amowtts: Property rax revenue $65,311 Intergovernmental 34.264 Charges for services (626) Fines and forfeits (4,284) Interest earnings 34,317 Licenses and pennits 96,025 Refunds and reimbursements 44,680 All other 7,803 277,490 Actual expenditures ( over)/under budgeted amounts General government: Contingency 123,168 Other 37 .270 160,438 - Public safety (66,402) Public works 17,681 Community services 19,788 (281933 ) Revenue over expenditures 408,995 Other financing sources (uses) 34 089 Net increase in fund balance $-H3.084 Detail of the preceding budget variances are presented in Statements 7 through 9 of the 1991 Comprehensive Annual Financial Report. City of Oakdale, Minnesota Management Repon, Page 20 The City's December 31, 1991 fund balance totaled $2,374,198. The City's General Fund balance has been as follows for the past several years: YearEnded December 31, 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 Purpose of Reserves C�sb t]Qw timing dif�r�s.!::S, ExpcodillirCS are incurred somewhat evenly throughout the year. Prop:ny taxes & Sta� aids are not received until the second half of the year. A rcsc:rve of one-half of such revenues is therefore recommended. lnl!.TgQV!.mrn!.ntru �V!.DJJ!. �J..111:m,Jcs, The City is vulnerable to legislauvc actions at both the Fedcni.l & Swe level Federal funding to loc:al govcmmc:nt has been subsWJtially cmtailcd in reccDt years. Annual adjustment of Local Government Aid & HACA formulas is a constant thrcaL Cii�ital Sllitlii::l [�lil,,mJ!::Dt. Intc:mal escrow for pumiasea which may exceed amounts available in any single budget cycle. This may also be Fund Balance $448,580 534,291 829,314 1,021,782 1,271,578 1,603,015 1,766,150 2,522,545 1,931,114 2,374,198 Inaease (Decrease) ($42,792) 85,711 295,023 192,468 249,796 331,437 163,135 756,395 (591,431) 443,084 Benefits of Reserves •Favorable bond rating indicator. •Supplements revenues with investment earnings. •Provides resources for minor projects or feasibility reports. •Avoids temporary overdrafts prior to major receipts. •City may study effects of revenue cuts before gradual program reductions. accomplished through tramfcn IO clcdica.ted replacement funds. •Avoids overburdening of annual budgets for �m�ai::01.:i: Q[ JJ.DW'.lti,i�iited t!'2!::Dd.itures, certain eapital outlay. Examples include natural d.isastas, lawsuitJ.. comparable worth implementation and premature breakdown •Provides the City greater options to deal withof viw equipment. unexpected events. S�iill Cin: C12:i.m,il fmi�1s, Preliminary studies, intcrlund loans and minor _projects arc examples of �c uses. The amount of General Fund reserve required to meet emergency and/or unanticipated expenditures is not readily quantifiable. Rather, the level of this requirement must be established by the City based on the history of the City and the philosophy of "adequate" reserve coverage. • • City of Oakdale, Minnesota Management Report, Page 21 The reserve requirement to deal with unforeseen intergovernmen tal revenue reductions is also difficult to quantify. State and Federal legislation dealing with shared aids is somewhat unpredictable. The City must strive to remain current on the effects of changing legislation and budget such aids accordingly. A reserve balance in the City's General Fund will mitigate the adverse effects of aid reductions which are received after expenditure budget comminnents are made. The City of Oakdale maintains reserve balances in other funds of the City for portions of the above reserve components. The City's minimum cash flow reserve requirement is measurable. For the City of Oakdale, the minimum required surplus is $1,363,251 computed as follows: 1992 Budgeted Levy (ir.cludes Homestead Credit) Im Budgeted State Aids Total Minirnwn Required Cash-Flow Reserve (One-Half of Total) S2,051,517 674,984 $2,726,501 Sl.363,251 The City had $2,374,198 of fund balance at December 31, 1991. This represents 171 % of the above targeted cash flow required reserve. There is, therefore, approx.itpately $1,010,947 available for other reserve requirements of the City. Without adequate General Fund reserve, the independence and autonomy of the City may be impaired. The City of Oakdale has taken actions over the past several years to improve the financial position of its General Fund. Dming 1985, the Cit)'. took formal action to define minimum reserve requirements for the City's General Fund. At December 31, 1991, the City had reserved fund balance for cash flow purposes in the amount of $1,363,251. Additionally, the City had designated General Fund reserves for emergency appropriations and compensated absences in the amount of $492,716. We commend the City for these actions and encourage the City to continue to monitor this reserve balance. An adequate reserve structure will enable the City to retain its financial independence and integrity during adverse economic conditions. City of Oakdale, Minnesota Management Repon, Page 22 Recent management reports have discussed the possibility of the State targeting aid reductions to cities based on "excess" fund balances. Past management reports have recommended that cities strongly oppose this legislation for a variety of reasons. The legislative commission on planning and fiscal policy has recommended standardization of accounting for cities. We believe this may be a first step in giving the State authority to target State aid reductions to cities. We recommend City officials closely monitor furore proposed legislation in this area. SPECIAL REVENUE fm.J)S The financial statements of the Special Revenue Funds are presented in Statements 10 through 17 of the 1991 Comprehensive Annual Financial Report. Special Revenue Funds are a classification of funds to account for revenues and expenditures segregated by City policy or Federal or State statutes for specific purposes. The City maintains the following Special Revenue Funds: Fund Balance lrKffllSe Fund 1991 1990 (Decreasel Forfeited proceeds $13,634 $26,256 ($12,622) Parks and playground reserve 24,743 12,810 11,933 Recreation activity 23,823 22,382 1,441 Surface water management 2,733 7,161 (4,428) Swnmerfest 1,172 1,172 Fuel sales 21616 2 616 Totals $68,.721 $68.609 $112 Parks and Play�ound Reserve Fund The Paiks and Playground Reserve Fund was established to maintain amounts for park improvements. The fund balance was $24,743 at December 31, 1991 representing an increase of $11,953. This fund transferred $167,375 to the General Park Development Capital Project Fund in 1990, compared to $90,000 in 1991. Park dedication fees totaled $94,888 during 199 1 compared to $153,250 in 1990. Recreation Activity Fund This fund records transactions of self-supporting recreation activities. The fund balance of this fund increased by $1,441 in 1991 to a balance of $23,823 at December 31, 1991. City of Oakdale, Minnesota Management Report, Page 23 Forfeited Proceeds The Forfeited Proceeds Fund was established to account for confiscated goods and cash related to controlled substance and gambling crimes. The 1988 legislature passed laws which allow local police departments to seize property which is used during a crime associated with controlled substances. There are a variety of rules and regulations included in Minnesota Statutes Section 609.53 related to circumstances under which property may be forfeited and procedures regarding disposition of forfeited property. There are several areas which may impact the financial accounting records of the City, as follows: 1.Certain property may be retained by the law enforcement agency for official use by the agency or prosecuting agency. Under certain circumstances, the City may be required to add these assets to any fixed asset records which the City retains including insurance of such property. 2.70% of the money or proceeds irom the sale of the forfeited property may be retained by the City for use in its operating fund or similar fund for use in law enforcement Certain other amounts must be forwarded to the County Attorney or other prosecuting agency and 10% must be forwarded to the State Treasury for crime victim and witness account. The City's Finance Department has coordinated with the Police Departtnent to establish procedures to account for any property forfeited pursuant to the preceding statute. During 1991 the fund had revenue related to seized property of $2,519 compared to $92,828 in 1990. The fund balance at December 31, 1991 was $13,634. City of Oakdale, Minnesota Management Report. Page 24 Surface Water Mana�emeot Fund This fund was established to account for expenditures related to surf ace water management. The fund balance of $2,733 is committed to future surface water improvements. A summary of financial activity from inception is as follows: Summerfest Revenue: Surface water management fee Interest Property taxes Total revenue Expenditures: General government Ortho Photo mapping Total expenditures Fund balance -December 31, 1991 Prier Years $86,526 21,518 115,205 $223.249 $191,958 24.130 S216,088 1991 S363 $363 $4,791 $4,791 Total $86,526 21,881 115,205 223,612 196,749 24.130 $220,879 $2,733 Funding sources and expenditures related to the City's annual Summerfest are accounted in this fund. This fund had a fund balance of $1,172 at December 31, 1991. The remaining fund balance represents activity fees in excess of expenditures coded to this fund. Fuel Sales This fund was established to account for the sale of fuel to nonprofit organizations. This fund had a fund balance of $2,616 at December 31, 1991 which is designated for equipment purchases. City of Oakdale, Minnesota Management Report. Page 25 DEBT SERVICE RJNDS The combinin g financial statements for the Debt Service Funds are presented in Statements 18 and 19 of the 1991 Comprehensive Annual Financial Report. Debt Service Funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt (other than Enterprise Fund debt). Debt Service Funds may have one or a combination of the following revenue sources pledged to retire debt as follows: •Pro.peny Taxes. Primarily for general City benefit projects such as parks and municipal buildings. Property taxes may also be used to fund special assessment bonds which are not fully assessed. •Tax Increments. Pledged exclusively for tax increment/economic development districts. •Capitalized Interest Portion of Bond Proceeds. After the sale of bonds, the project may not produce revenue (tax increments or special assessments) for a period of one to two years. Bonds are issued with this timing difference considered in the form of capitalized interest •Special Assess ments. Charges to benefited properties for various improvements. In addition to the preceding pledged assets, other funding sources may be received by Debt Service Funds as follows: •Residual Project Proceeds from the Capital Project Fund•Investment Earnings•State or Federal Grants•Transfers from Other Funds Pledged assets may be divided into three categories: 1) Recorded as fund assets with the revenue deferred until collected 0evied assessments and levied taxes); 2) Actually received by the fund and included in fund balances (collected assessments, interest, bond proceeds, etc.); and, 3) Furure pledged assets not recorded as assets but intended to be collected at a future date (scheduled property taxes and estimated tax increment collections). Reporting standards segregate the construction phase and the debt service phase into separate fund types. Special Assessment Debt Service Funds are combined with the City's Debt Service Funds. City of Oakdale, Min nesota Management Repon, Page 26 The diverse nature of the type of debt included in the same fund type requires careful analysis to determine the adequacy of the fund balance and projected fund balance. The following sche.dule extracts information from several sections of the Comprehensive Annual Financial Report to assist in this analysis. Fund Descripti� General Debt: Park Bonds of 1973 Park Bonds of 1976 Sewer Rehabilitation Water Tower Bonds Public Works Garage Bonds EquipmentCenificatesof1988 Equipment Cenificat es of 1989 Equipment Cenificates of 1990 Equipment Cenificates of 1991 Total General debt Tax Inaement Debt: Tax Increment Bonds of 1985 Tax Increment Bonds of 1987C Tax Increment Bonds of 1987B Tax Inaement Bonds of 1988D Total tax increment debt Special Assessment Debt: $840,000 Impro-Yement Bonds of 1967 $611,000 lmpro-Yements of 1969 $810,000 lmpro-Yements of 1969 $985,000 lmpro-Yements of 1969 $1,872,000 lmpro-Yements of 1971 $230,000 lmpro-Yements of 1971 $624,000 lmpro-Yements of 1973 S700,000 lmpro-Yements of 1976 $2,750,000 Impro-Yements of 1986 $9,350,000 lmpro-Yements of 1986 $1,190,000 Improvements of 1987 Closed Bond Sinking Fund $1,520,000 Improvements of 1988 $2,225,000 Improvements of 1988 $2,600,000 Improvements of 1989 $2,560,000 Improvements of 1990 $740,000 Improvements of 1991 Total special assessment debt HRA Public Project Revenue Bonds of 1991 Total -All Debt Sef\lice Funds December 31. 1991 Fund Deferred B�ance _ �_Revenue $56,383 Sl,275 55,868 695 164,389 3,557 1,740,503 8,175 636,267 3,375 149,328 5,985 (2,137) 970 (13,299) 0 925 0 2,788.227 24,032 6,949 0 955 0 60 0 268 0 8.232 0 531,676 31,010 583,019 46,202 184,854 23,831 255,063 24,758 343,429 55,142 283,502 10,008 106.500 8,723 452,928 8,592 1,521,730 210,728 3,735,286 2,110,122 959,192 30,552 324,924 97,316 809,504 527,209 890,815 1,246,443 741,854 1,360,450 976,381 1,678,550 71.036 278.420 12,771.693 7,748,056 13.167 0 S15,581,319 $7,772,088 Total $57,658 56.563 167,946 1,748,678 639,642 155,313 (1,167) (13,299) 925 2,812.259 6,949 955 60 268 s:232 562,686 629,221 208,685 279,821 398,571 293,510 115,223 461,520 1,732,458 5,845,408 989,744 422,240 1,336,713 2,137,258 2,102,304 2,654,931 349,456 20,519,749 _ _13,l67 $23,353,407 Outstanding �bt $160,000 75,000 325,000 1.535,000 630,000 260,000 75,000 320,000 230.000 3,610,000 715,000 165,000 305,000 3,200.000 �385.000 255,000 210,000 240,000 135,000 650,000 30,000 140,000 1,190,000 5,475,000 740,000 1,005,000 1,675,000 2,320,000 2.560,000 740,000 17.365,000 2.300�QOO $27,660,000 •-Tax increment collections are subject to future tax rates and future valuations within the District. Scheduled Final Property Maturity Taxes Date S205,000 8/1/98 84,305 4/1/98 342,406 2/1/96 581,439 2/1/06 244,535 2/1/06 150,255 2/1/93 87,019 4/1/94 395,274 2/1/95 2771802 2/1/06 2.368,035 •2/1/95•2/1/07•2/1/04•2/1/04 170,000 4/1/97 59,800 2/1/99 192,000 2/1/99 64,000 6/1/94 556,667 5/1/01 12/1/91 25,000 1/1/94 4/1/97 292,196 2/1/94 330,000 2/1/04 176,204 2/1/96 2/1/96 2/1/99 2/1/01 10,631 2/1/99 424,500 2/1/00 2.300,998 2/1/03 · $4,669,033 • t City of Oakdale, Minnesota Management Report, Page 27 Deferred revenue of the preceding schedule primarily consists of uncollected special assessments. The preceding schedule compares outstanding debt with: 1) fwid balance; and, 2) deferred revenue. Debt service funds should be evaluated at least annually. The following chart summarizes steps to consider. Condition A Cautions 1.Is the City expe:ijencing favorablecollection rates for special assessments?2.Are anticipated invesaneru interestrates earned on prepaymems adequate to replace assessment interest?3.ls the timing of receipts sufficient tomeet bonded debt payments asthey become due?4.Are significant ponions of assessments not scheduled for collection(green acres, tax forfeit,etc.)?5.Is arbitrage or negative arbitragean issue? The debt service fund is clearly adequately funded. Pum for eventual use of surplus. Conclusion 1 Condition B Questions 1.Are sufficient future assetsscheduled (such as property taxes)to me.et booded debt payments?2.Arc cash assetS sufficient togenerate invesanem �s?3.Are cransfers or other fundingsources available?4.Are there future assets to pledgesuch as assessments, MSA allotments, ete. 7 The debt service fund is c1ear1y nm adequately funded. Plan for alternative funding (taxes, transfers, other sources). Conclusion 2 Variables and possiple ou1COmes are LOO diverse. Pre� projections to analyze possible scenarios and options. Conclusion 3 The City had a debt service study performed which prepared multiple cash flow projections for all of the City's Debt Service Funds based on December 31, 1990 balances. The study included various ranges of assumptions regarding investment rates and assessment collection rates. The City of Oakdale, Minnesota Management Repon, Page 28 City has committed debt service projected balances to fund a municipal facility expansion program. We recommend that all, or a portion of the debt service study be updated periodically to provide information regarding the availability of reserve balances anticipated to fund the lease payments to the HRA for the City Hall Expansion Project. Improvement Bonds of 1988A The City canceled cenain assessments in early 1992 for parcels in the Liberty Crest Development. The City then recertified assessments to these parcels at an amount approximately $61,000 less than the amount canceled. This will affect the projections in the Debt Service Study favorably. The Debt Study cash flow schedules did not project recovery of past delinquencies. The recertification of prior delinquent assessments will therefore improve the projected cash balance of this fund. Tax Increment Bonds of 1985 The City has issued the Tax Increment Bonds of 1985 pursuant to MS 273.73 (Economic Development District). The debt of this fund is scheduled to be retired from tax increment proceeds. Tax increment proceeds are based on the increased captured valuation of property within the District. Forecasted values are based on estimates of future increases and other factors. We recommend, therefore, that the City monitor actual revenue flows compared to projected revenues to assure timely availability of cash to meet bonded debt payments. Tax increments were collected as follows: 1987 1988 1989 1990 1991 Tax Increment Bonds of 1987B Tax Increment Bonds of 1987C Actual $242,783 274,092 284,576 286,427 293,811 Bud!! $226,000 226,000 226,000 226,000 226,000 Over (Under) $16,783 48,092 58,576 60,427 67,811 The City established two additional Tax Increment Financing Districts (flF) in 1987. These TIF Districts are part of the second Economic Development District of the City. The $340,000 TIF Bonds of 1987B were issued to provide land improvement subsidy for development. City of Oakdale, Minnesota Management Repo� Page 29 The $165,000 TIF Bonds of 1987C were issued to provide land acquisition incentives in the form of retired assessments. The City used the proceeds of this issue to pay its own debt service fund for outstanding special assessments. Tax Increment Bonds of 1988D The City established Tax Increment Financing (TIF) District #6 in 1988. The $3,200,000 TIF Bonds of 1988D were issued to provide land improvement subsidy for development CAPITAL PROJECT FUNDS The financial statements for the Capital Project Funds are presented in Statements 20 and 21 of the 1991 Comprehensive Annual Financial Report The Capital Project Fund type now includes special assessment projects. The fund balances (deficits) of the Capital Project Funds at December 31, 1991 and 1990 are presented below. Water Availability Reserve General Parks Development Municipal State Aid Computer Acquisition Fund 1991 Equipment Certificates Sanitary Sewer Rehabilitation Tax Increment# 1 & #5 Tax Increment #2 Tax Increment #3 & #4 Tax Increment #6 Tax Increment #7 Tax Increment #8 Tax Increment #9 Hadley Avenue Future Reconstruction Revolving Special Assessment Rehabilitation Future Improvements 1988 Construction 1989 Construction 1990 Construction 1991 Construction City Hall Expansion City Sewer Availability Charge City Improvement Planning Totals Fund Balance (Deficit) December 311 1991 1990 $752,243 $1,897,317 105,949 80,089 183,410 126,674 0 488 752 0 0 66,749 518,795 490,451 121,601 82,377 (17,408) 21,483 538,885 201,192 19 0 23,459 0 48,158 23,387 38,917 36,779 33,881 373,776 6,522 3,468 (112,803) (521,258) 0 274,233 312,337 296,907 32,268 130,752 (17 ,252) 0 681,492 0 475,794 272,540 1,294,983 1.200z<>OO S5.022.002 S5,057z404 Inaease (Degea9e) ($1,145,074) 25,860 56,736 (488) 752 (66,749) 28,344 39,224 (38,891) 337,693 19 23,459 24,771 2,138 (339,895) 3,054 408,455 (274,233) 15,430 (98,484) (17,252) 681,492 203,254 94,983 ($35,402 ) City of Oakdale, Minnesota Management Report. Page 30 G�neral farks Os:vs:lQ12rns:nI The General Parks Development Fund had the following activity from inception: Prior Years 1991 Total Sources: Transfers from: Revenue Sharing Sl l,242 $11,242 General Fund 221,597 221,597 Park and Playground Reserve 585,399 $90,000 675,399 Walton Park Building Project 31,227 31,227 Interest on investments 23,473 3,453 26,926 State grant 48,000 48,000 Other 40,828 40,828 Total sources $930.539 $124,680 1,055,219 Uses: Consuuction costs $761,624 $98,820 860,444 Capital outlay 28,292 28,292 Other 21,771 21,771 Transfers to: Northdale Park Development 3,255 3,255 General Fund 7,596 7,596 Park and Playground Reserve 27.912 27 1912 Total uses $850.450 $98.820 949,270 Fund balance -December 31, 1991 $105.949 During 1991, the City expended $98,820 for various park improvements. City of Oakdale, Minnesota Management Repon, Page 31 Sanitary Sewer Rehabilitation Fund The Sanitary Sewer Rehabilitation Fund was established in 1985 to account for inspection and repair of leaks within the City's sewer mains. A summary of transactions through December 31, 1991 is as follows: Closed in 1991 Revenue and other sources: Investment interest Bond proceeds Total Expenditures: Contractor Engineer Other Total Net increase in fund balance Residual equity transfer (out) Fund balance -December 31, 1991 Prior Years $89,315 494,000 S583.315 $294,580 191,014 30,972 $516.566 1991 so $4,044 637 855 $5�536 Total $89,315 494,000 583,315 298,624 191,651 31.827 522,102 61,213 (61,213) so The rehabilitation proje.ct was completed in 1991. The anticipated benefit of the rehabilitation project is reduced MWCC flows and related billings. The remaining balance of $61,213 was transferred to the 1985 Sanitary Sewer Rehabilitation Bonds in 1991. City of Oakdale, Minnesota Management Repon, Page 32 Tax Increment Fund # 1 and #5 The Tax Increment Fund #1 (3M) was established in 1985. A summary of transactions through December 31, 1991 is as follows: Prior Years 1991 Total Revenue and other sources: Investment interest $57,919 $43,963 $101,882 Tax increment 845,095 293,811 1,138,906 Homestead credit 833 833 Bond proceeds 1.084,742 1,084,742 Total S1,988,589 _____fil 3 7, 77� _ _ 2,32�363 Expenditures: Land acquisition $1,052,675 1,052,675 Bonding costs 23,057 23,057 Developer incentives 42,000 42,000 Other 10,406 $2,045 12,451 Transfer to Debt Service Fund 370,000 207,385 577,385 Transfer to Capital Project Fund I 00, 000 100,000 Total $1,498.138 $309,430 --1.:,807.568 Fund balance -December 31, 1991 $5181795 The City staned receiving tax increment collections in 1987. Such collections were deposited in the related Debt Service Fund. Collections are now deposited in the Capital Project Fund. The City funds debt service requirements through annual transfers on an as needed basis. Additional tax increment collections (if any) may then be used on other qualifying City Council approved projects within the District The City exercised the option in 1988 to include the second project (District 5). Resolution 88- 141A approved the enlargement of Development District # I and modified the financing plan for Tax Increment Fmancing District 1-1 to include JCS #2. City of Oakdale, Minnesota Management Repon, Page 33 Tax Increment Fund #2 The Tax Increment Fund #2 (Sahota and Crawford) was established in 1987. A summary of transactions through December 31, 1991 is as follows: Revenue and other sources: Investment interest Tax increment Homestead credit Bond proceeds Total Expenditures: Bonding costs Administration costs Developer incentives Other Transfer to Debt Service fund Total Fund balance -December 31, 1991 Prior Years $9,145 91,424 711 145,575 $246,855 $8,791 15,750 117,682 3,255 19,000 $145.478 1991 S6,845 46,916 $53,761 $950 13.587 $14,537 Total $15,990 138,340 711 145,575 300,616 8,791 15,750 117,682 4,205 32�587 179,015 $121.601 Tax increment collections from the Sahota Project are pledged to the $165,000 TI Bonds of 1987C and the $340,000 TI Bonds of 1987B. City of Oakdale, Minnesota Management Report, Page 34 Tax Increment Fund #3 and #4 The Tax Increment Fund #3 (McKinnon) and #4 (JCS #1) was established in 1987. At December 31, 1991, the district had delinquent taxes receivable of $27,592. A summary of transactions through December 31, 1991 is as follows: Prior Years 1991 Total Revenue and other sources: Investment interest $20.781 $2.135 S22.916 Tax increment 30,812 8,998 39,810 Bond proceeds 285,853 285.853 Total S337 1446 $11,133 348,579 Expenditures: Land acquisition $95,000 95,000 Bonding costs 11,472 11,472 Administration costs 20,000 20,000 Developer incentives 131.336 131.336 Other 3,155 $850 4,005 Transfer to Debt Service fund 55,000 49,174 104.174 Total S260,963 $50,024 365,987 Fund balance (deficit)-December 31, 1991 !Sl7,4O8) Tax Increment Fund #6 The Tax Increment Fund #6 (Bergen Plaza) was established in 1988. A summary of transactions through December 31, 1991 is as follows: Prior Years 1991 Total Revenue and other sources: Investment interest $117,574 $24,987 $142,561 Tax increments 87,699 468.228 555,927 Bond proceeds 2.591,000 2,591.000 Total $2,796.273 S493,215 3,289.488 Expenditures: Bonding costs $58.855 58.855 Administration costs 32,000 32,000 Developer incentives 2,499,996 2,499,996 Other 4,230 $950 5,180 Transfer to Debt Service Fund 154.572 154,572 Total S2,595,O81 Sl55.522 2,750,603 Fund balance -December 31, 1991 S538,885 City of Oakdale. Minnesota Management Report, Page 35 Annual transfers to the $3,200,000 TI Bonds of 1988D Debt Service Fund are required. The first such transfer ($154,572) was made in 1991. Tax increment collections may be less than anticipated based on lower commercial tax capacity rates. The City may have rights to recover lost increment revenue directly from the developer (section 7.4). We recommend that the City monitor this situation. Tax Increment Fund #9 The Tax Increment Fund #9 (Fleet Farm) was established in 1989 but did not have any financial activity until 1990. A summary of transactions through December 31, 1991 is as follows: Revenue and other sources: Investment interest Tax increments Total Expenditures: Olher Transfer to Debt Service Flllld Total Fund balance -December 31, 1991 Prior Years $282 23,105 $23,387 $0 1991 Total $3,271 $3,553 81,008 104.113 $84,279 107,666 $550 550 58,958 58 1958 $59.�08. 59,508 S48.158 The collections of this district are pledged to pay debt service of special assessment debt of the City. Tax Increment Collections Tax increment collections (all Tax Increment Districts) are anticipated to increase significantly in future years as follows: Year 1987 1988 1989 1990 1991 1992 1993 1994 Total Collections (District 1 -6 and 9) Budiret Actual $131,733 226,000 259,939 318,465 471,687 881,482 916,736 982,272 $242,783 297,864 314,229 465,343 940,857 City of Oakdale, Minnesota Management Report, Page 36 Tax in crement bonds were issued to finance various projects within the City's development districts. Tax increment collections are based on the increased captured valuation of the property within the District Forecasted values are based on estimates of future increases and other factors including the effects of State legislation on the property tax system. The 1990 and 1991 legislature reduced the tax capacity rates on commercial property as follows: 1990 1991 1992 1993 1994 1995 Rate Rate Rate Rate Rate Rate First $100,000 of market value 3.30% 3.20% 3.10% 3.00% 3.00% 3.00% Market value over $100,000 5.06% 4.95% 4.75% 4.65% 4.60% Targeted to eventually be4% This decrease in rates may adversely affect projected future tax increment collections. We recommend, therefore, that the City monitor actual revenue flows compared to projected revenues to assure timely availability of cash to meet bonded debt payments. The City's debt service study will be updated to re-evaluate the projected position of the tax � increment debt service funds. Water Availability Reserve This fund was established to account for the collection of Water Availability Charges (WAC). Such charges are accumulated to pay for future water system improvements and/or the related debt service of such improvements. The fund balance of this fund at December 31, 1991 was $752,000. Revenue totaled $277,000 in 1991 (including interest of $88,000). The City expended $1.4 million in 1991 primarily for construction of a water tower and well. The City has entered into a joint powers agreement with Washington County, Ramsey County and the City of Lake Elmo to provide safe drinking water for a portion of the City of Lake Elmo. City of Oakdale, Minnesota Management Report, Page 37 The City of Lake Elmo will own and operate the system Water will be supplied by the City of Oakdale. Construction and start-up costs will be paid by Washington County (2/3) and Ramsey County (1/3). The estimated cost of the project to the Counties is as follows: WAC to City of Oakdale Start-up operating fund to City of Lake Elmo Construction Costs Total from Counties $40,500 25,000 804.300 $869.800 The City has established billing practices to assure timely billing of water to the City of Lake Elmo. Municipal State Aid Fund The Municipal State Aid Fund was established in 1986 to account for MSA maintenance allotments received in excess of the amount deposited in the General Fund. A summary of transactions through December 31, 1991 is as follows: Prior Yem 1991 Total Revenue: MSA grant $148,697 $46,127 $194,824 Interest 17.260 12.009 291269 Total revenue $165.957 S58,1� 224,093 Expenditures: Construction costs $36,755 36,755 Other 2,528 s1 1400 3,928 Total expenditures $39,283 Sl,400 40,683 Fund balance -December 31, 1991 $183.410 City of Oakdale, Minnesota Management Repo� Page 38 This fund is designed to account for maintenance monies received which are not allocated to the General Fund. The City may use such monies for street projects or MSA major repairs. The City has allotted maintenance revenue from 1986 through 1991 as follows: Geneial MSA Year Fund Fund Total 1986 $30,660 $24,825 $55,485 1987 68,412 0 68,412 1988 22,591 0 22,591 1989 61,353 68,270 129,623 1990 55,603 55,602 111,205 1991 46,127 46,127 92,254 The decrease in 1991 revenue reflects the City's share of the Statewide reduction in Municipal State Aid. Additionally, the 1990 revenue includes an adjustment to prior year revenue. City of Oakdale, Minnesota Management Report. Page 39 City Hall Facilities Expansion The City has approved a City Hall Facilities Expansion program. Bonds have been sold by the City's Housing and Redevelopment Authority (HRA) and are held in trust for disbursement over the pericxl of the expansion. A project budget is as follows: Consttuction Costs: Contractor Architectural and engineering (8.5%) Total consttuc tion costs Other Project Costs: Furnishings new addition (17,000 sq. fee @ $7 /sq. foot) (Council chambers and police dept) Remodel Allowance (New furnishings in remodeled areas) AV equipment Miscellaneous Soil testing Financing costs Telephone equipment Space study Cabling Remove asbestos Move antenna Contingency Total other cost Total project cost Original Bud.l?et $1,758,120 149.440 1,907.560 119,000 31,000 40,000 10,000 5,000 50,000 70,000 671440 392,440 S2,300,000 Revised 12/31/91 B� Actual $1,900,930 Sl,439,994 171,660 179.846 2.072.590 1.619.840 111,317 0 0 8,740 0 10,036 8,513 4,839 4,839 37,995 39,474 65,919 5,592 16,137 20,000 5,500 5,025 9;394 0 294.902 58,418 $2,367,492 _$1,678,258 The increase in the revised budget is partially funded through a transfer from the General Fund. The underlying financing plan commits other debt service fund projected smpluses to pay for debt of the City Hall facilities. The availability of these amounts are subject to a variety of factors including special assessment collection rates and investment earnings. We recommend that the debt service study be updated pericxlically to monitor the availability of anticipated funding sources. City of Oakdale, Minnesota Management Repon, Page 40 Revolvin � Account The Revolving Account is maintained to account for monies remaining after construction is complete from other Special Assessment -Construction Accounts. The assets of this account consist of bond proceeds (definitive issues rather than temporary issues) and are restricted in accordance with the various Council resolutions authorizing the bond issues. The fund balance of $33,881 at December 31, 1991 is available to be appropriated at the discretion of the City Council for qualifying Minnesota Statute Chapter 429 local improvements or for transfer to related debt service funds. Future Jrm,rovemem Account The Future Improvement Account is maintained to account for project costs during the feasibility study or preliminary stages of the projects. The deficit of this fund was $112,803 at December 31, 1991. The deficit is the result of incurring preliminary project costs prior to securing a source of financing. The following projects were included in this account at December 31, 1991: 1991 Overlay(91-04) Hadley 42nd-50th (91-07) 15th Street (91-10) Street Lighting (91-03) Upper 24th Drainage (91-08) Total Future Improvements $98,002 16,906 7,769 523 1�235 $124,435 We recommend that the Oty review open projects of this fund at least annually to redefine the status of each fund and provide financing as appropriate. Reimbursement Bond Regulati0ns The newly issued Treasury Regulations Section 1.103-17 pertains to "reimbursement bonds". Areas affected by these regulations are; all governmental bonds, all qualified 501(c)(3) or nonprofit borrowings issued after September 7, 1991 and which apply to reimbursement of previously paid expenditures. With the new regulations, the City will not be allowed to issue tax exempt bonds for expenditures it has previously paid unless it meets the following regulations: City of Oakdale, Minnesota Management Report, Page 41 A, Official Intent Declaration The issuer, or person authorized by the issuer must document in the "publicly availability official books, records, or proceedings of the issuer" that they intend to use the bond proceeds to reimburse prior expenditures. The record must contain the words "tax exempt, taxable debt, or tax exempt debt". Funhennore, starting ten days after issuance of the declaration or the date of the issuance of the bonds and ending on the day after the issuance of the bond, it shall be available to the public to view. The declaration must contain a description of the use and function of the propeny for which the expenditure was made. It must also include enough information so a person who is not knowledgeable on the property can understand the disposition and use of such property. The declaration should identify which sources of funds will be used to temporarily finance the expenditure and which sources of funds will be used to pay the Debt Service Fund. A declaration must be "consistent with the budgetary and financial circumstances of the issuer as of the date it is made". In addition, the issuer must not have a "pattern" of declaring intent and then neglect to reimburse those expenditures. Events that the issuer did not expect to occur or that he had no control of, will not affect the declaration. B.Two Year Rule Prior to the expenditure being paid, a declaration must have been made, but that declaration cannot be made more than two years in advance of the expenditure. Although, if the expenditure is preliminary (architectural, engineering, surveying, soil testing) a declaration may occur more than two years in advance of the expenditure. Nevertheless, the benefit from the exception canno t be greater than 10% of the expected cost If it is an unforeseeable cost (costs which we ren't anticipated more than 15 days before their payment), the issuer has 30 days after payment of the expenditure to make a declaration. C, One Year Rule After an expenditure is made, the city has one year to allocate the bond proceed to reimburse prior expenditures. But, if the property is placed into service after the expenditure is paid, they will have one year after the service date to allocate the reimbursement If the expenditure is a preliminary expenditure that is discontinued, then the City is allowed the later of one year after abandonment or 3 years after the last preliminary payment to allocate the bond proceeds to the expenditure. D, Useful Life Rule Any expenditure being reimbursed from issued bond proceeds must pertain to property that is expected to have an economic life of at least one year. Only bonds issued after September 7, 1991 will apply to these regu lations. However, the regulations may have a retroactive effect if the bond proceeds are used to reimburse expenditures prior to September 7, 1991. If expenditures are paid within two years ending at midnight on September 7, 1991, they will apply to a "transition rule". This rule s�tes that if at the time of payment of the expenditure the issuer intends to reimburse the expenditure with bond proceeds and if it is reasonably expected to occur, then the issuer is exempt from making a declaration and from the two year rule. We recommend the City establish procedures to monitor compliance with these. regulations. City of Oakdale, Minnesota Management Report, Page 42 1988 Improvements < 1988 Series C} Financing sources provided: Bondiroceeds MSA Interest Total financing sources provided Financing resources used: 15th Street (83-13) Upper 35th Street (88-03) County State Aid Highway 35 (85-11) Werkhoven (87-05) Diamond Ridge (87-06) Cypress Point (87-12) Tartan Heights (87-15) Total 1988 Improvements Residual equity transfer Fund balance-December 31, 1991 $517,451 68,640 680,273 60,015 436,562 247,360 427.549 $2,191,625 436,385 �068 2,697,078 2,437,850 (259,228) so All of the above projects were completed at December 31, 1991. The residual balance of this fund was transferred to the Bonds of 1988 Series C Debt Service Fund in 1991. 1989 Improvements Financing sources provided: Bood proceem Interest Other Total financing sources provided Financing resources used: Hadley Ave. Phase I and II (87-02, 85-02) Oakpond 12th Street (88-20) MN Eastwood (88-17) Tartan Heights 2nd (88-02) Total 1989 Improvements Fwtd balance -December 31, 1991 $1,035,605 131,071 686,184 495.298 $2,504,444 121,984 34,067 2,660,495 2,348.158 $312,337 These projects have all been assessed and are complete at December 31, 1991. We recommend that the residual balance of this fund be transferred to the Bonds of 1989A Debt Service Fund. City of Oakdale, Minnesota Management Report, Page 43 1990 Improvements Financing sources provided: BondJr(X:eeds MSA Interest Total financing sources provided Financing resources used: Granada Ave. North of 40th (89-08) Wllkerson Addition (89-05) Sewer Distribution 18 &19 (89-01,03,06) Hilyar Addition (89-13) Hadley Ave. Phase m (89-15) Olsen Lake Water Main (88-12) Granada Ave./Hwy.5 to RR (88-18) Total 1990 Improvements Fund balance -December 31, 1991 All projects are completed as of December 31, 1991. 1991 Improvements Financing sources provided: Boodproct.eds MSA State highway grant Transf& from Tax Increment #1 & #5 Transfer from Water & Sewer Interest Engineering charges to County Total financing sources provided Financing resources used: Hadley & 10th Intersection (88-15) Service Road 36 (90-01) Upper 46th (90-02) Fwid balance (deficit)-Decembe.l' 31, 1991 $61,889 588,197 705,726 60,896 674,856 211,553 428.092 Sl,024,950 359,990 113,665 $2,448,120 290,488 24,869 2,763,477 2,731.209 $32.268 $724,729 587,340 20,936 100,000 12,360 6,466 29�522 1,481,353 1A98,60S ($17.252) The above projects were in various stages of completion at December 31, 1991. The above deficit is anticipated to be funded by the allocation of 1992 assessment revenue or other project revenues. City of Oakdale, Minnesota Management Repon, Page 44 City Sewer Availability Char� During 1990 the City established a separate Sewer Availability Charge Fund. These charges had been collected in the sewer operating fund prior to 1990. These amounts had been needed to subsidize sewer operations based on losses incurred. The City has adjusted rates over the past several years to allow for a self sufficient sewer operation. We commend the City for these efforts. The City SAC charges will now be a vailable for capital replacement and extension. Additionally, the City has pledged a portion of sewer billings to the City SAC fund. The 1991 revenue from utility billings totaled $25,871. The fund balance was $475,794 at December 31, 1991 Capital Improvement P1annin� Fund The City established the Capital Improvement Planning Fund in 1991 to account for capital asset replacement including studies on the actual cost of such replacements. This fund was established through a residual equity transfer from the City's General Fund. Administrative/En �neerin � Char2es The City currently charges a 2% administrative fee for construction projects. Additionally, the City has charged (on an hourly rate) the City engineer's time to various escrowed developer deposits. The City added the engineer position in 1987. Expenditures are inc� in the City's General Fund. A substantial effon is expended by various departments of the General Fund in the capital improvement process. In 1988 the City began charging in house engineering on an hourly basis. For 1991, such charges totale.d $36,629. However, a formal policy for these proce.dures has not been adopte.d. Additionally, the City incurs prelim inary engineering (both in-house and consulting) for projects which have not yet been approve.d. Such amounts are allocate.d to the Future Construction Fund. We recommend that the City review the levels of engineering fees incurred for preliminary studies. City of Oakdale, Minnesota Management Repon, Page 45 ENTERPRISE CUTILITY FUNPl The financial statements for the Enterprise Fund are presented in Statements 22 through 24 of the 1991 Comprehensive Annual Financial Report Condensed comparative statements of income and expense for the years 1989 through 1991 for each of the combined funds are shown in the following schedules. Water Operations 1991 1990 1989 Amount Percent Amount Percent Amount Percent Income: Customer billings $661,045 94.36 % $601,731 94.26 % $582,286 92.94 % Other 39.529 5.64 36,639 5.74 44.220 7.06 Totals 700,574 100.00 638,370 100.00 626.506 100.00 Expenses: Operating expenses 569,334 81.27 538,846 84.41 452,395 72.21 Depreciation on purchased assets 6.943 0.99 4,814 0.75 10,912 1.74 Totals 576,277 82.26 543,660 85.16 463,307 73.95 Net amount t:ramferred to retained earnings $124,297 17.74 % __ $94,71()__ 14.84 % ___j_l 63,199 26.05 % $700,000 ·Water Operations $700,000 $600,000 $600,000 $500,000 $500,000 $400,000 $400,000 $300,000 $300,000 $200,000 $200,000 $100,000 $1 00,000 $0 so 1983 1984 1985 1986 1987 1988 1989 1990 1991 f.¥:ffeW##WJ Operating Expenses Operating Revenue City of Oakdale, Minnesota Management Repon, Page 46 Sewer Operations Income: Operating Other Totals Expenses: MWCC Other operating Depreciation on purchased assets Totals Net amount transferred to retained earnings $1,350,000 $1,200,000 $1,050,000 $900,000 $750,000 $600,000 $450,000 S300,000 S150,000 so 1991 Amount Percent Amount $1,301,935 99.18% $1,168,789 10,806 0.82 19,600 1,312,741 100.00 1,188,389 758,614 57.79 602,647 371,252 28.28 325,544 9,752 0.74 13.577 1,139,618 86.81 941,768 S173,123 13 .19% $246.621 Sewer Operations 1990 Percent 98.35% 1.65 100.00 50.71 27.39 1.14 79.25 20.75% 1989 Amount Percent Sl,071,533 98.15% 20,230 1.85 1,091,763 100.00 548,942 50.28 270,890 24.81 16,672 1.53 836.504 76.62 $255.259 23.38% Sl.350,000 Sl.200,000 Sl,050,000 $900,000 $750,000 $600,000 $450,000 S300,000 $150,000 so 1983 1984 1985 1986 1987 1988 1989 1990 1991 All Olhcr Expense.s J¥%iffe.:4¥¥®) MWCC •Operating Revenue ... ii City of Oakdale, Minnesota Management Report, Page 47 The MWCC bills the City annually on an estimated basis. These billings are adjusted at a later date and the City is billed the additional amount or given a refund. The MWCC billings for calendar years 1973 through 1992 have been as follows: 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 Estimated $7,584 33,317 59,666 78,202 93,290 117,625 165,178 214,873 236,814 303,428 354,630 386,053 453,869 489,171 503,559 568,349 605,201 652,960 737,419 861,968 Billings (excluding Lake overflow) Percent Change (84.10)% 339.31% 79.07% 31.07% 19.29% 26.09% 40.43% 30.09% 10.21% 28.13% 16.87% 8.86% 17.56% 7.77% 2.94% 12.87% 6.48% 7.89% 12.93% 16.89% Final $23,274 35,116 61,465 77,702 85,837 139,776 171,940 222,222 228,875 319,119 346,809 337,671 386,416 495,716 438,885 512,089 554,888 673,049 n/a n/a Percent Change (54.55)% 50.88% 75.03% 26.42% 10.47% 62.84% 23.01% 29.24% 2.99% 39.43% 8.68% (2.63)% 14.44% 28.29% (11.46)% 16.68% 8.36% 21.29% $800,000 1----------------------�= s100.ooo 1---�:ivvccrurnr:::------------ssoo.ooo S600,000 MWCC Billings s100,ooo SS00,000 r-------------$600,000 s400.ooo r----------......... ssoo.ooo $300,000 r---------$400,000 s200.ooo r----- S3oo,ooo $100,000 so 76 '77 "78 '79 '80 'II '82 '83 '84 '85 '16 "87 '88 '89 '90 '91 I m Lake Overflow-Est • Regular Billing-En -Aaual Billing• I- The last year for lake overflow charges was 1987. The City's regular billin g however, increased at an amount almost equal to the eliminated amount of lake overflow charges. City of Oakdale, Minnesota Management Repon, Page 48 There are three basic factors which contribute to changes in billings from the MWCC: 1.Chan�es in use of the system. The MWCC increased the estimated amount of usage for the City of Oakdale for 1992 by 6.7% (from 740 to 790). 2. Increased cost to process sewa�e. The MWCC's cost to process (per million gallons) increased from an estimated $1,069 in 1991 to an estimated $1,156 in 1992. This represents an increase of 8%. 3.The declinin� impact of credlts. The MWCC provides credits to the City of Oakdale in the form of current value credits and in the form of debt service credits. Current value credit is a straight-line credit of $1,150 per year. The debt payment credit is a more significant credit which totaled $50,560 for 1992 charges to the City. The combination of the above factors has increased the City's estimated cost in 1992 by 16.9%. We recommend that the City continue to monitor MWCC billings (as well as other operating expenses of the City's water and sewer operations) and continue to review rates annually to assure full funding of these services. Utility rates (sewer and water) were the subject of a Special Repon submitted to the City during November, 1982 and updated in late 1983 and early 1984. Those reports analyzed and reviewed the historical financial operations of the sewer and water funds from 1975 through 1981 and projected financial operations (under various assumptions) through 1988. The conclusion of that repon was that sewer and water user rates were insufficient to meet the increasing costs and other commitments of these operations. That repon also concluded that an adverse trend had developed whereby the spread between operating revenues and obligations was increasing. City of Oakdale, Minnesota Management Repon, Page 49 Rates have been adjusted in six of the preceding eight years (starting in 1983). The effect of the rate increase on average users is dependent on their level of usage. A summary of the effect of rate increases on residential users based on quarterly usage of 20,000 gallons is as follows: Residential 11.·au:r rates Residential sewer rates Flat rate Water billing Flat rate Sewer billing Tow billing Amounlper per based on usage Amount per per based 011 usage based on usage Pm:ent � 11000 gal used auan.er of 20.000 gal 11000 gal used CJUal1a" of 20.000 gal of20,000 gal 1982 $0.40 $4.20 512.20 $0.70 $4.80 SIB.BO 531.00 1983 0.50 S.25 15.25 0.90 6.00 24.00 39.2.S 1984 0.55 5.25 16 .25 1.15 6.00 29.00 45.25 198S 0.60 6.00 18.00 1.45 12.00 41.00 59.00 1986 0.60 6.00 18.00 1.45 12.00 41.00 S9.00 1987 0.65 6.00 19.00 1.45 12.00 41.00 60.00 1988 0.65 6.00 19.00 1.45 12.00 41.00 60.00 1989 0.70 6.00 20.00 1.52 12.00 42.40 62.40 1990 0.75 6.00 21.00 1.63* 12.00 44.60 65.60 1991 0.79 6.00 ll.74 1.71 12.00 46.20 67.94 Additionally, the City established a Sewer Availability Charge (SAC) which has improved the fund position significantly. The rate increase and SAC charge have successfully reversed the adverse operating trend of several years ago. The City's SAC charges are now accounted for in a separate capital project fund dedicated to sewer system replacement and expansion. 27 '7o 15 30 0 2 0 4 5 4 City of Oakdale, Minnesota Management Repon, Page 50 A comparison to other metropolitan cities is as follows: Residential Quarterly Billing Based on 22.000 Gallons of Usage Wau::r Sewer Total Lake Elmo 27.00 NIA 27.00 West SL Paul NIA 29.40 29.40 Fridley 13.20 24.65 37.85 Minnetonka 18.70 26.40 45.10 Blaine 12.10 33.00 45.10 Richfield 27.72 23.54 51.26 lnver Grove Heights 26.40 27.50 53.90 Oak Park Heights 20.30 33.71 54.01 Roseville 26.18 28.98 55.16 Shoreview 21.11 34.34 55.45 Cottage Grove 24.15 31.50 55.65 Woodbury 17.24 39.06 56.30 New Brighton 15.85 41.25 57.10 Vadnais Heights 22.00 37.00 59.00 South St Paul 14.52 44.66 59.18 Bloomington 34.05 25.20 59.25 Mounds View 20.90 39.75 60.65 Lakeville 21.23 41.44 62.67 Willernie 35.96 27.50 63.46 White Bear Lake 23.53 46.47 70.00 Maplewood 33.80 37.05 70.85 Arden Hills 32.78 39.95 72.73 Oakdale 23.31 49.62 72.93 Mound 25.30 49.00 74.30 Colwnbia Heights 41.26 33.82 75.08 Lillie Canada 44.50 34.00 78.50 St. Paul 30.88 53.82 84.70 Lino Lakes 48.72 38.00 86.72 Mahtomooi 35.58 65.42 101.00 Effective Ye3r 1989 1991 1990 1991 1991 1992 1989 1990 1992 1992 1990 1991 1991 1991 1991 1992 1991 1992 1990 1992 1992 1992 1990 1992 1992 1991 1992 1991 1991 User rates must be sufficient to cover operating expenses plus meet the additional financial committnents of the City's Sewer and Water Enterprise Fund. These additional financial committnents are as follows: 1.Capital outlay and/or depreciation for the non-system fixed assets (i.e .• machinery and equipment). 2.Future system improvements to be financed directly from user rates (if any). City of Oakdale. Minnesota Management Report. Page 51 3.Debt payments (principal and interest) for a portion of the City's Sewer and Water Revenue Bond Issues which are used to finance portions of the City's water and sanitary sewer systems (i.e .• water towers, wells, pumphouses. sanitary sewer interceptors and lift stations, and water and sewer overpass). 4.Reserve balances for the Sewer and Water Enterprise Fund at sufficient levels to meet current and future City policy. In addition to the above factors, the 1992 State legislation has further taxed the Enterprise operations of cities. The legislation has added sales tax on go vernmental purchases. The sales tax impacts the Water and Sewer Funds as follows: •The Water Fund is primarily impacted by the sales tax paid by the City and chemicals and supplies by the City to operate the water utility. •The Sewer Fund is primarily impacted by passed through charges from the Metropolitan Waste Control Commission. The MWCC will pay sales tax on its purchases which in turn is passed through to the City via a higher per million gallon processing charge. The MWCC has estimated that the net impact on billings to cities will be approximately 1.2%. The Sewer Fund also has purchases made by the City which will be subject to the sales tax. •There is now a State charge on service connections to public water supplies. The City has the option to add this charge to the bill as a separate pass through amount or to increase rates to cover the payment to the State. In light of the change in economic times, we recommend that the City continue efforts to review sewer and water utility rates. Many cities are considering the implementation of tiered water rates to encourage conservation and preserve the City's water supply. A tiered water rate system increases the per 1,000 gallon charge as tiers (thresholds) are exceeded. The City CUITently charges a minimum of $6.00 per quarter for single family dwellings. The same per 1,000 gallon charge is currently in effect for all volumes of water consumed. As mentioned above, as tiers are exceeded higher per 1,000 gallon charges would be charged. This has the effect of shifting a greater portion of the responsibility for funding water operations to those who actually use the water. Additionally, this has the effect of encouraging conservation for high end consumers. City of Oakdale, Minnesota Management Repon, Page 52 Our office prepares utility rate studies which can present a variety of both tiered and non tiered water rate alternatives for the City. If the City would like assistance in preparing such a study, please advise and we will provide an outline of the procedures which we would perform as well as a description of the anticipated results of our work. Ambulance Fund The Ambulance Fund had a 1991 net income of $18,348. A schedule of the net operating income 0oss) for the past nine years is as follows: Year 1983 1984 1985 1986 1987 1988 1989 1990 1991 Amount ($3,826) 7,669 (10,823) (11,063) (6,289) 11,504 (4,613) 6,414 18,348 The City should monitor receivables from ambulance billings and ambulance billing rates to insure adequate revenue and to avoid cash overdrafts due to outstanding receivables and to fund deficits due to insufficient user rates. Rates must be increased or the City must provide a subsidy from other funds. We recommend that the City Council annually approve write offs of amounts deemed uncollectible. So:eet Li�htin� Fund During 1991, the City established a Street Lighting Enterprise Fund. This fund accounts for City wide charges for street lighting energy costs through utility billings. Maintenance of City owned street lights may also be charged to this fund. The initial petjod of operations reflected a loss of $2,578 (before contribution depreciation). City of Oakdale, Minnesota Management Repo� Page 53 AGENCY RINDS At December 31, 1991, the City had the following Agency Funds: •General Escrow •Investment Fund •Charitable Gambling •Deferred Compensation General Escrow Fund The General and Industrial Revenue Bond Escrow Funds are maintained to account for monies received and disbursed for the benefit of various developers and other individuals and organizations. Investment Fund The Investment Fund is maintained to simplify the cash management system of the City and to allocate investment interest to the individual funds of the City. Charitable Gamblin� The Charitable Gambling Fund was established in 1986 for the administration and distribution of proceeds contributed by charitable gambling in on-sale liquor establishments in the City of Oakdale. The City will collect proceeds from gambling operations and use the monies for community/recreation activities sponsored by non-profit organizations. Deferred Coropensation Fund The Deferred Compensation Fund was established in 1987 in response to the issuance of the Governmental Accounting Standards Board (GASB) Statement No. 2. GASB Statement No. 2 requires deferred compensation plans adopted under the provisions of Internal Revenue Code Section 457 to be included in the City's Comprehensive Annual Financial Report. INTERNAL CONTROL STRUCTIJRE Current auditing standards require an auditor to communicate any material weaknesses in the City's internal control structure directly to City Council and/or City Administrators .. Our examination for 1991 disclosed no material deficiencies in the City's internal control structure not identified in this repon or past repons to the City Council. City of Oakdale, Minnesota Management Report. Page 54 We have audited the financial statements of the City of Oakda le, Minnesota as of and for the year ended December 31, 1991, and have issued our report thereon dated June 9, 1992. 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 financial statements are free of material misstatement In planning and performing our audit of the financial statements of the City of Oakdale, Minnesota, for the year ended December 31, 1991, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. The management of the City of Oakdale, 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 and that transactions are executed in accordance with management's authoriz.ation and recorded properly to permit the preparation of 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 condi tions 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. •control environment •accounting system •control procedures 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. City of Oakdale, Minnesota Management Repon, Page 55 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 do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely pericxi by employees in the normal course of perfonning their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. This report is intended for the information of management and others within the City of Oakdale, Minnesota. This restriction is not intended to limit the distribution of this repon, which is a matter of public record. Reportable Conditions During the 1991 audit, two reportable conditions in the internal control structure were noted as follows: •Disbursin�. Currently the preparation of checks and access to blank checks are not independent of each other. We recommend that a staff other than the one responsible for che.ck preparation control the access to the stock of blank che.cks. •Banlc Reconciliations. The City does not currently have a different staff prepare banks reconciliations and disburse checks. Improved internal control would be achieved if the functions could be segregated. The City is reviewing procedures to increase the segregation of duties in these areas. Computer System The Oty is considering a change in computer systems to improve efficiency, cost containment and future flexibility. The conversion of in-house systems requires a review of internal control procedures. A partial listing of areas to review is as follows: •Input Controls, Including input authorization, changes to input data, input error detection controls, etc. •Process Controls, Including validation of data prior to processing, error detection features of systems, periodic tests of system functions, etc. City of Oakdale, Minnesota Management Report, Page 56 •Ouu,ut Contrels. Including test of output for accuracy, distribution of output controls, retention of output system, etc. •Pro2J:am Controls. System to asswe that existing programs are not altered without authorization and that authorized program changes are effected and that all programs (and changes thereto) are properly documented completely and accurately. •System Security, To assure only authorized use of the system and to safeguard data that would otherwise be lost through error (or disaster such as fire). •Pevelqpment of user manuals. •Schedulin� of systems user prioriry, •Sem,�ation of duties, The above areas should be addressed by the City as the computer system is implemented. These features will better assure safeguarding of City interests and the overall integrity of the system. The City will gain efficiencies through connecting the various micro computers through a local area network (LAN). Such a system would allow for sharing of documents created on spreadsheet, word-processing and other micro computer based applications. The new system anticipated by the City will be a microcomputer based LAN. CERTIFICATE OF EXCELLENCE IN FINANCIAL REPORTING The City submitte.d the 1990 Comprehensive Annual Financial Repon to the Government Finance Officers Association of the United States and Canada (GFOA) for a stringent review. The program is a review of all facets of financial reponing for disclosure, clarity and consistency with national reponing standards. The City received the award for 1990. We commend the City for this achievement. Incremental upgrades had been made over the past several years in preparation for submission. The award recognizes that the City is part of a relatively select group of reponing entities which have successfully met the standards as prescribed by the GFOA program. ... City of Oakdale, Minnesota Management Report, Page 57 SUMMARY During 1992, we recommend that the City: •Carefully monitor state actions which directly and indirectly affect the funding of City operations. (Page 8) •Continue effons to monitor the collection rate and provide supplemental financing if assessment collections are not adequate to meet bonded debt payments. (Page 15) •Monitor the County's progress in converting tax forfeit parcels to cash. (Page 17) •Officials closely monitor future proposed legislation in State aid reductions to cities. (Page22) •All or a portion of the debt service study be updated periodically to provide information regarding the availability of reserve balances anticipated to fund the lease payments to the HRA for the City Hall Expansion Project (Page 28) •Monitor actual revenue flows compared to projected revenues to assure timely availability of cash to meet bonded debt payments. (Page 28) •Monitor the situation on rights to recover lost increment revenue directly from the developer. (Page 35) •Monitor actual revenue flows compared to projected revenues to assure timely availability of cash to meet bonded debt payments. (Page 36) •Debt service study be updated periodically to monitoc the availability of anticipated funding sources. (Page 39) •Review open projects of the Future Improvement Account at least annually to redefine the status of each fund and provide financing as appropriate. (Page 40) •Establish procedures to monitor compliance with these regulations. (Page 41) •The residual balance of the 1989 Improvements Fund be transferred to the Bonds of 1989A Debt Service Fund. (Page 42) •Review the levels of engineering fees incurred for preliminary studies. (Page 44) •Continue to monitor MWCC billings and continue to review rates annually to assure full funding of these services. (Page 48) •Continue efforts to review sewer and water utility rates. (Page 51) City of Oakdale, Minnesota Management Report, Page 58 •City Council annually approve write offs of amounts deemed in the Ambulance Fund. (Page 52) •Have a staff other than the one responsible for check preparation control the access to the stock of blank checks. (Page 55) YEAR& STATIJTE REFERENCE 1992MS 144.3831 Subd. 1 1992MS 297 A.25 Subd. 11 CITY OF OAKDALE, MINNESOTA STA 1E LEGISLATIVE ACTION #37 Authorized the Commissioner of Health to assess an annual fee of $5.21 for every service connection to a public water supply that is owned or operated by a City or Town. #36 Sales tax on purchases by political subdivisions of the State is imposed. School districts, hospitals, nursing homes and ambulance services owned and operated by political sul:x:livisions. The tax is effective for sales made after May 31, 1992 pursuant to Article 8 Section 39. Appendix A Page 1 of 13 INITIAL YEAR ESTIMATED IMPACT Statewide estimates not yet available. No impact on City of Oakdale if fee is passed through to user. Statewide impact of $68 million for State fiscal year 1993. City of Oakdale impact of $4 1,900 for 1992. 1992 MS #35 Expenses incurred by Counties and Cities in the Estimates not 207 A.10 Subd. administration of the presidential primary shall be reimbursed available. 1 by the Secretary of State. 1992 MS #34 Increased the total amount of equalization Aid to 477A.03 Subd. $20,011,000 for aids payable in 1993 and thereafter. 1 1992MS 477A.013 Subd. 3 1992MS 16A.711 Subd. 5 #33 Adjusted LGA formula. For aids payable in 1993 and thereafter, City will receive an amount equal to 103% of LGA it received in 1992 before any non-permanent reductions made under 477A.0132. #32 Authorize the Commissioner of Revenue to make adjustments in aid amounts in the second fiscal year of each biennium if anticipated total revenues is less than anticipated total obligations of the local government trust fund. State wide increase of $52 5,316. State wide increase of $8.4 million. City of Oakdale increase $16,000. Not predictable, however, City's should maintain reserves to deal with this event. Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 YEAR& STATIITE REFERENCE CITY OF OAKDALE, MINNESOTA STA1E LEGISLATIVE ACTION 1991 MS 275.51 #31 Authorized contingent addition to the levy limit by the Subd. 7 amount of lost aid of local go vernments located in a County where the local sales and use tax was not enacted. 1991 MS 477A.0132 Subd. 1 and 2 #30 Further reductions in local government aid for aids payable in 1992. Estimated reduction percent is 4.034% of 1992 revenue base. Revenue replaced by property tax levy authority. 1991 #29 Approved LGA cut for December, 1991 aid payment. MS 477A.0132 Cut is estimated to be 1.6% of 1992 revenue base. Aid cut Subd. 1 and 2 not replaced with levy authority. 1991 MS 273.1398 Subd. 1 #28 Adjusted the HACA base as the 1991 certified HACA ks.s. any 1991 permanent HACA reductions. Appendix.A Page 2 of 13 INITIAL YEAR ESTIMATED IMPACT If local sales and use tax is adopted there will be no impact Statewide decrease in 1992 LGA of $43 million. City of Oakdale decrease $142,000. (Replaced by levy authority). Statewide reduction of $14.3 million. City of Oakdale reduction $56,000. Statewide estimates not yet calculated. City of Oakdale -no impact. Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 YEAR& STATIJTE REFERENCE 1991 HF 1698 Art. 2 Section 6 1991 HF 1698 Section 5 COY OF OAKDALE, MINNESOTA STA 1E LEGISLATIVE ACTION #27 Authorized the establishment of a local option sales tax of 1/2% on all retail sales in the County. If the County does not authorize the additional 1/2% sales tax, Cities and Towns within the County which have a majority of the population may override the County action by sending copies of approving resolutions to the County Auditor by August 1, 1991. #26 H any County does not approve the local option sales tax of 1/2% there would be no payments made to the local government trust fund to the County or to City, Town or Special Taxing Jurisdictions located in the County. (See #30 for increased levy authority). Appendix A Page 3 of 13 INITIAL YEAR ESTIMATED IMPACT Because it is likely that most Counties will approve the local option sales tax, there will likely not be a competitive disadvantage within the State of Minnesota. The increase of 1/2 % in sales tax however, provides a possibly greater competitive edge for surrounding States. ff the local option sales tax is not passed, the City of Oakdale would lose approximate! y $1,408,000 of State aid beginning in 1992. Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 YEAR& STA1UTE REFERENCE CITY OF OAKDALE. MINNESOTA STATE LEGISLATIVE ACTION 1991 HF 1698 #25 The local government trust fund is authorized to make Art 2 Section 3 the following payments to Counties, Cities, Towns and special taxing disoicts: 1)HACA 2)Disparity Reduction Aid 3)Local Government Aid and Equalization Aid 4)Increased HACA Guarantees 5)Suppleme ntal Homestead Property Tax Relief 6)Disparity Reduction Credit 7)25% of the State Aid for County Human Services 8)Attach Machinery Aid, a fee for the Commissioner of Revenue to administer the local option tax ($852,000 for 1992 and $660,000 for fiscal year 1993). 9)Other fees to the Commissioner of Finance and to the Advisory Commission on inter-governmental relations. If revenue is insufficient to pay each of the above amounts, the Commissioner of Revenue is authorized to reduce the payments of the first four items (HACA and LGA). Appendix A Page 4 of 13 INmAL YEAR ESTIMATED IMPACT There should be no impact on the City of Oakdale or other governmental jmisdictions if revenues reach forecasted levels. If however, revenue is less than anticipated. there likely will be reductions in HACA and local government aid TheHACA reductions, if made during the year, will cause property tax collection rates to be reduced. This is an extremely unfavorable bond indicator which is already impacting Minnesota Local Governments based on 1991 reductions in HACA. Note: The tax rate "buy down" will increase HACA. Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 YEAR& STATIJ1E CITY OF OAKDALE, MINNESOTA REFERENCE I STA 1E LEGISLATIVE ACTION 1991 HF 1698 #24 Created the local government trust fund to be used Art. 2 Section 2 exclusively to pay local governments for inter-governmental aid and to repay advances made by the State's general fund as may have been required to make all required payments as provided by law. If revenues of the trust fund are insuffici ent to pay commitments, all commitments to local governments will be proportionately reduced unless other provisions have been made. If the estimated receipts of the trust fund exceed estimated payments by $1 million or more the appropriation from the trust fund to each inter governmental aid program would be increased proportiona tely unless there are specific provisions which prohibit such increase. 1991 HF 1698 #23 Establish the advisory commission on inter- Art. 2 Section 1 governmental relations with an initial membership of twenty through July 1, 1992. After July 1, 1992 the commission is reduced to fourteen members. The commissioners are to be representative of the various geographic and governmental jurisdictions of the State. Appendix A Page 5 of 13 INITIAL YEAR ESTIMATED IMPACT The creation of the local government trust fund will impact the Oty of Oakdale only if the estimated revenues of the fund fluctuate significantly from estimates. Revenue shortfalls should be budgeted to anticipate cuts late in the operating year. Budget practices should therefore be amended to consider a factor for possible reductions based on suppressed economic conditions in any given year. The commission is in a "advisory" position to the legislature. As such the commission has little or no power and therefore cannot directly impact the State or the City of Oakdale. Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 YEAR& STATUTE REFERENCE CIJY OF OAKDALE, MINNESOTA STA TE LEGISLATIVE ACTION 1991 MS 273.13 #22 Approve further adjustments to the commercial Subd. 32 industrial tax rate for valuations in excess of $100,000. 1991 MS Section 473F.02 Subd. 8 1991 MS 273.13 Subd. 22 Adjusted rates effective through 1994 as follows: Finl $100,000 of market value Maita value over $100,000 1990 1991 1992 1993 1994 1995 Rile Ra1e RalC RalC Rale Rile ------- 3.3M. 3.21>'1, 3.111% 3.00" 3.00% 3.00% Tqe!ed10 5.06i> 4.95i> 4.75i> 4.711% 4.60% �mlllally be 4i> #21 Prohibits municipalities from conscientiously excluding most commercial -industrial development within their community for reasons other than preserving agricultural use through restrictive comprehensive z.oning and planning poli cies. #20 For aid payable in 1992, HACA will increase for certain cities as a result of the adjusted property class rates (see #19 and #22) and the net tax capacity adjustment (see #12). Toe net tax capacity adjustment is calculated as follows: (previous year total net tax capacity -current year total net tax capacity) x current local tax rate. Appendix A Page 6 of 13 INITIAL YEAR ESTIMAlED IMPACT Tax burden shifts from commercial industrial property. Tax increment districts may reflect lower than anticipated revenue flows. For those communities deemed to violate this statute, they may be excluded from the fiscal disparities pool within the seven county metropolitan area. The impact for such excluded communities would likely be a significant increase in their local tax rates. State aid increase in funding to cities not yet available. 1992 HACA increase to City of Oakdale of $98,800 or 13%. The HACA increase is primarily due to the net tax capacity adjustment. Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 YEAR& STATIITE REFERENCE 1991 MS 273.13 Subd. 22 CITY OF OAKDALE. MINNESOTA STAIB LEGISLATIVE ACTION #19 Approved adjustments to residential homestead property (class la). Adjusted rates are as follows: Payable Payable Payable 1991 1992 1993 Rate Rate Rate First Tier of Market Value Up to $68,000 1.00% Up to $72,000 1.00% 1.00% Second Tier of Market Value $68,001 to $110,000 2.00% $72,001 to $115,000 2.00% over $72,000 2.00% Third Tier of Market Value over $110,000 3.00% over $115,000 2.50% Prepared by Tautges, Redpath & Co., Ltd. Appendix A Page 7 of 13 INITIAL YEAR ESTIMATED IMPACT The change in class rates applied to residential property will not impact the total revenue raised by the City or shift the tax burden between property classes but rather will increase the amount of HACA received by the City. (see #20) Note: The increased HACA payments are subject to adequate revenue available in the local government trust fund. (see #25) April 30, 1992 YEAR& STATUTE REFERENCE 1991 MS 270.12 Subd. 2 1991 MS 477A.0132 Subd. 1 & 2 1991 HF 47 CITY OF OAKDALE. MINNESOTA ST A TE LEGISLATIVE ACTION #18 Establish methodology used in preparing assessments /sales ratio studies requiring them to be consistent with the most recent Standard on Assessment/Sa/es Ratio Studies published by the Assessment Standards Committee of the International Association of Assessment Officers. #17 1991 LGA initially frozen at 1990 levels, then in subsequent actions, aid was cut. The 1991 reduction equals 2.052% of the City's Revenue Base. This aid cut will first reduce LGA. If the City's LGA is insufficient, then the cut will affect Equaliz.atioo Aid, HACA and Disparity Reduction Aid, in that order. Aid cut not replaced by levy authority. #16 State Aid road allotments were reduced to Cities. Appendix A Page 8 of 13 INITIAL YEAR ESTIMATED IMPACT The assessment/sales ratio factor of the local government aid formula affected a variety of Cities in 1990. This current change in methodology should be reviewed and challenged by Cities if they believe the methodology results in a higher adjustment to market values within the City which directly impacts tax capacity. Recent state legislative actions have targeted aid reductions to Cities with high tax capacity. Statewide reduction in funding to cities $20.5 million. City of Oakdale reduction $72,000. Statewide reduction $3.8 million. City of Oakdale reduction $17,900. Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 YEAR& STATIJTE REFERENCE CITY OF OAKDALE, MINJ\TESOTA STA TE LEGISLATIVE ACTION 1990 Ch. 604 #15 Levy limits for Cities repealed starting with Art. 3 Section 47 collectible 1993 levy. 1990 MS 273.1399 Subd. 5 1990 MS 477A.013 Subd. 7 1990 MS 273.1398 Subd. 2 #14 Approved potential LGA and HACA cuts related to tax increment districts formed after April 30 , 1990. #13 Further reductions in LGA to cities. The Legislature reduced LGA by 1.53% of the revenue base. This permanent cut occurred after City budgetS were adopted and the operating year was one third elapsed. The Legislation did not provide a replacement revenue source. #12 The prior year (1990) HACA cut related to LGA is extended to also reduce 1991 HACA. Established a "Homestead and Agricultural Credit Base". HACA base is defined as the previous year's certified HACA aid. For aid payable in 1991, HACA is determined as shown in #7. For aid payable in 1992, HACA is determined as follows: (HACA base x growth adjustment factor) + net tax capacity adjusttnent + fiscal disparity adjustment Appendix A Page 9 of 13 INITIAL YEAR ESTIMATED IMPACT Anticipated extension and delay of stan likely to result in no impact. Estimated reduction in aids not calculated. Legislation designed to discourage new tax increment districts. Statewide decrease in 1990 LGA $14.4 million, City of Oakdale decrease $52,239. Reduction equal or greater than 1990 HACA cut. For aid payable in 1992, HACA will increase for certain cities based on the tax rate change "buy down". (see #20) Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 YEAR& STATUTE REFERENCE 1990 MS 273.13 Subd. 24 & 32 1990 MS 477A.013 Subd. 5,6,7 1989 MS 477A.013 Subd. 5 CITY OF OAKDALE, MINNESOTA STA TE LEGISLATIVE ACTION #11 Commercial property tax rates lowered. (See #21). 1990 1991 1992 1993 Rate Rate Rate � First S 100,CXKl ci maiket value 3.30% 3.20% 3.10% 3.00% Market value over Targei.ed to SIOO,CXKl 5.06% 4.95% eventllally be 4% #10 Equalization Aid limited to 12% increase over 1990 Equalization Aid. Also Eqnatiz:ation Aid subje.ct to reduction if LGA is not sufficient to absorb cuts based op. revenue base. Equalization Aid capped Statewide at $19,485,684. #9 Tax Base Equalization Aid, is a program that targets aid to low tax base cities starting in 1990. Tax Base Equalization Aid to be administered similar to HACA whereby the county auditor to deduct the aid from the amount of taxes certified. by the city. Payments of Tax Base Equalization Aid to be made on July 20 and December 15, 1990 from the Department of Revenue. 1989 SPl Ch 1, #8 1989 levy limits for Cities repealed starting with Art. 5 Section 51 collectible 1992 levy. In 1990 the effective date was extended to collectible 1993 levies. (See #15) .. Appendix A Page IO of 13 INTilALYEAR ESTIMATED IMPACT Tax burden shifted to residential and other property classes. Existing commercial based tax increment districts to produce lower revenue stream to cities. Maximum equalization aid established to limitfuture increases. City of Oakdale increase $4,015. Statewide initial year increase in aid $19.5 million. City of Oakdale increase $33,460. Anticipated extension and delay of start likely to result in no impact. Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 F· YEAR& STATUTE REFERENCE 1989 MS 273.1398 Subcl. 2 1989 MS 273.1398 Subcl. 2 CITY OF OAKDALE, MINNESOTA STA TE LEGISLATIVE ACTION #7 Transition Aid re-termed to Homestead and Agricultural Credit Aid (HACA). The formula for distribution was modified from the 1988 Transition Aid formula for Unique Trucing Jurisdictions (UTJ) as follows: Payable 1989 gross taxes of UTJ less [Payable 1989 local tax rate X payable 1990 net tax capacity X .9767) As with the original Transition Aid the above HACA to be distributed to local governments based on the percent of local government levy to total UTJ levies. HACA was subject to additional reductions if the level of local government aid was insufficient to absorb the education aid shift and other cuts. The education shift and the subsequent cuts were first taken from LGA, then from Equalization Aid, then from HACA and finally from Disparity Reduction Aid. � LGA initially increased for 1990 by approximately $30 million from the 1989 level. Funding transfer to school districts subsequently approved. The aid transfer to school districts is a method of increasing the State financial -support for education while decreasing financial support for cities. The aid transfer for a city is an amount equal to 3.4% of its adjusted net tax capacity. Cities received increased property tax levy authority to replace the aid transfer. Appendix A Page 11 of 13 INITIAL YEAR ESTIMATED WPACT Statewide BACA reductions totaled $1.9 million. City of Oakdale -no BACA cut because LGA was sufficient to absorb entire cut. Statewide 1990 decrease in WA $44 .6 million. City of Oakdale decrease related to the transfer to schools of $361,458 See #13 for additional LGA reduction. Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 YEAR& STATIJTE REFERENCE 1989 MS 477A.013 Subd. 3 1988 MS 273.13 CITY OF OAKDALE, MINNESOTA STA TE LEGISLATIVE ACTION #5 LGA formula revised to reduce household guarantee factor from 1.08 in 1989 to 1.04 in 1990 to reduce the expenditure/unlimited ratio factor by 50%. A 15% ceiling increase over prior year LGA factor was also added. #4 Taxes spread to propeny owners based on tax capacity valuations. Taxes levied divided by tax capacity valuations equal tax capacity rates. This is a change from the prior system in which taxes were spread to property owners based on assessed valuations. Taxes levied divided by assessed valuations mill rates. Appendix.A Page 12 of 13 INITIAL YEAR ESTIMA1ED IMPACT Aid increases were subsequently entirely wiped out by shift to school districts. Initial aid increase for 1990 was $30 million Statewide. City of Oakdale increase of $135,824. Re-measurement of valuations were designed to have no impact on aids or relative valuations. Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 : .-.. YEAR& STATIJTE REFERENCE 1988 MS 273.1398 Subd. 2 1988 MS 273.1398 Subd. 3 1988 MS 477A.013 Subd. 3 CITY OF OAKDALE, MINNESOTA STATE LEGISLATIVE ACTION #3 Cities to receive Transition Aid in lieu of homestead credits. Transaction aid to be calculated on each unique taxing jurisdiction (UTJ) and then allocated to the local units of govem.Iilent within the UTJ based on the proportion of local governments gross tax levy 10 total taxes within the UTJ as follows for 1990: Gross taxes of UTJ less [46% X 2.17% X 1989 tax capacity rate X 1988 aggregate assessment sales ratio] X UT J net tax capacity X 103 The above UTJ amount to be allocated to local governments based on percent of local governments levy to total UTJ levies. Transition Aid to be frozen at 1990 levels. Considering growth and inflation, this freeze is a reduction of State funding. Transition Aid was the replacement of the Homestead Credit Program. This Transition Aid was subsequently re-termed as Homestead Credit arid Agricultural Aid (HACA) -see #7. #2 Targeted Cities (primarily non-metro cities) to receive disparity reduction aid. The 1989 disparity reduction aid to be based on 1988 gross taxes and gross tax capacity rates. Disparity reduction aid will be frozen at 1989 levels. Metropolitan suburban cities to receive one-half of one percent of this aid ($300,000 of $54.3 million). #1 Local government aid (LGA) formula modified to reflect a per household aid factor compared to prior year tax capacity and tax base increase. Expenditure/unlimited ratio factor established as component of LGA formula. Lower of three-part formula to calculate initial LGA increase. Appendix A Page 13 of 13 INITIAL YEAR ESTIMATED IMPACT The freeze nature of the legislation will result in gradual decrease of HACA in 1991 and future years. Actual comparisons not available because Homestead Credit no longer calculated on the prior method. 1989 increase in Aids to Cities State wide $54.3 million, City of Oakdale no increase in aids. Statewide 1989 aid increased $79.3 million, Oakdale increase of $306,601. Prepared by Tautges, Redpath & Co., Ltd. April 30, 1992 CITY OF COLUMBIA HEIGHTS TO: :J MAYOR AND CITY COUNCIL MEMBERS FRO : �STUART W. ANDERSON, CITY MANAGER SUBJE : MANAGER'S REPORT DATE: OCTOBER 23, 1992 1)NORTH METRO MAYORS' ASSOCIATION-- /0. ft. On Wednesday, November 18, 1992, at 6:30 PM, the Association is having a meeting and all Council Members are encouraged to attend. Representative Orfield will make a presentation which is very educational and of great importance to the north metro community. He will make a graphic presentation on the changing demographics of the metro area and the impact on us. You will better understand the current situation and the projections for the future. Hopefully, this information will serve as a catalyst for even greater action from those in the north metro area. A notice will be coming out in the near future. The purpose of today's information is so that you can reserve the date. 2)METROPOLITAN COUNCIL'S VISION AND GOALS-- Attached is the September 25, 1992, updates to the plan. The North Metro Mayors' Association has several concerns about the plan and the Met Council has been unresponsive to our concerns and has not made any changes suggested. The largest issue is that the plan and the Council refuse to accept the goal of balanced growth for the metropolitan area--yet another hit on the north metro. £LOCAL GOVERNMENT AID-- Attached please find the latest draft of the LMC proposal and reasoning on how to distribute LGA and the need for it to continue. The League has done a lot of work to determine the factors which go into needed services or factors that drive up the cost and/ or need for services. In the near future, there will be additional information on this important subject. It is absolutely necessary that the cities collectively have a plan of action and their defenses against false assumptions ready by the time the legislature convenes. 4)I-35W IMPROVEMENTS-- The south Minneapolis community is aggressively working to present viable alternatives to MN/DOT's options on how to upgrade I-35W from downtown to Burnsville. While we are big users of this route, the MN/DOT options will suck up so much money that north metro will hurt for many years. Further, their other super projects include 494 and 94. The battle for transportation dollars is underway and decisions will impact us for twenty years. Council Members should try to keep informed on this dollar drain and lobby at the appropriate times and places. 1 have secured one copy of the South Minneapolis plan. If you wish to review it, please see me. 5)CENTRAL A VENUE BANNERS-- We have worked out a cooperative schedule with the VFW on alternating flags and banners. Our blue welcome banners are down so that flags can be put up for Veteran's Day. After a period, they will come down so that holiday banners can go up. We will continue to work with the VFW on this matter. 6)LIGHT RAIL TRANSIT-- Attached is a letter from the Anoka County Railroad Authority outlining their plans to continue the planning phase for the Northeast Corridor LRT. If you have questions, please contact me. MANAGER'S REPORT Page 2 October 23, 1992 7)MINNESOTA RELEAF PROGRAM-- Attached is a letter advising us that we did not receive a grant this year. The letter explains the grant applications which will receive the most consideration. We will try to design our next application to their suggestions. 8)BUS SHELTER-- Some time ago, Columbia Heights requested a bus shelter at 40th and University, southbound. MTC has a limited number of shelters and we have been promised one. The City will pour the cement base for the shelter. Mr. Nawrocki was of great assistance in facilitating this shelter. _,, V 44TII AVENUEOVERIAY--�s;f dA'iruJf r he milling and overlay project on 44th Avenue is going to come east only to Quincy Street. We anticipate some street work on 44th Avenue while making improvements to Jackson Pond and did not want to destroy the new asphalt. If you have questions, please see Mark Winson or me. 10)941 45TH A VENUE NE-- At a recent meeting, the question was asked about the retaining wall at the above address. The owner took down the wall and two trees and has hired a contractor to build a new wall. As of October 22, the permit has not been issued. I will continue to monitor the situation. 11)PEDESTRIAN SIGNAL AT IIlGHWAY 47 & 51ST AVENUE-- Attached is a memo received from MN/DOT. They are holding a public hearing on the subject at the request of Fridley. The meeting is Wednesday, November 4, at John Murzyn Hall. 12)HUSET PARK-- Attached is a summary of the skating rink project budget. This is for information only to keep you aware of the approved and planned spending. 13)CIVIL LAW SUIT-- In the suit of Harvey Mild versus Columbia Heights involving the issue of proper setback of a house from the curbline, the court granted our request for a summary judgment. This in effect dismisses Mr. Mild's suit against the City. Mr. Mild has the opportunity to appeal. SWA:bj 92/165 Attachments Metro 2015 Vision and Goals Oct. 16 draft /.�="rcr'�sh'ffws"aian es:a:orfH:s<�tIF. · ·� �·�allJusi1r�su:iKe&uts1an-W.saagfa� �if.J2!!l� �.)'.-.«-k-�-·:+;-.--..y· .. g •,•-..... � ¥-·* .... ·-:::•,-'.' -��-:� .......... .v .... �,��,l'�J,5;.,t ... v .... �.,-y,. ............... »(.,...,.,.xt�I( .. .->;-;-:, ...... v.v.-.-.-.-,.,;.s Metropolitan Council Mears Park Centre, 230 E. Fifth St St. Paul, Minnesota 55101 612 291-6359 TDD 291-0904 Publication No. 040-92-104 Oct. , 1992 Printed on Recycled Paper Contents page Introduction ........................................................ · ......... 4 Why A Vision? .......................................................... 4 The Starting Point ................................................ , .......... 5 Key Goal Areas .......................................................... 6 How the Goals Were Developed .......................................... '. �,· .... 7 Where the Goals Will Take Us: A Summary ................ ; ......... , ...... , ......... 8 Goals .......... ·" ... '. . ,· ......... , ... : ........................................ 11 Introduction .............. ; ..... �-......... , .........••................... 11 A Strong Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 12 Goals .............................................................. 13 Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Effective Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Goals ............................... , ......................... :, . . . . . 18 Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Effective Transportation .................................................. 20 Goals ...............................•......... ·'.: ..................... 21 Measures ..... · ........ , .... .-...... , .................... · . . . . . . .. . . . . . . . . . 23 Leading-Edge Telecommunications .... .-..................................... 24 Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . • . . • . . . . . . . . . . . . . . . . . . . . 25 Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . � . . . . . . . . . . . . . . . 26 Quality Education . . . . . . . . . . . . . . • . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Goals .............. , .................................................... 28 2 Measures ............................. , ..... , -�. "J . • • • • • • • • • • • • • • • • • • • • • 32 Ind(�la.¥�1. Faniily �ncf."'CcimmuotFY Well;;B'�@g ........... : .............. , ..... , ... 32 Goals ................................................................ 34 Measures ....... · .-� ......................................... , .......... 36 Responsibility to the Environment ........................................... 36 Goals ..... , ....... ,· ................................. , ................... 39 Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Arts, Culture and Recreational Opportunities .............. "' ................... 43 Goals .......... ·, .... ., . -· ........................ ., . . . . . . . . . . . . . . . . . . . 44 Measures .... · ................................................. ·:. .. . . . . 46 Appendices ............................................................ , .. 46 List of Focus Group Members ............ ; .................. ; ..... , .... :-.. . List of Groups Council Met with to Discuss Metro 2015 ..................................................... � ... . List of Correspondence Received .......................................... . 3 Introduction This document contains the Metropolitan Council's "vision" of what the Twin Cities Region should be like in the year 2015. Why a Vision? The Metropolitan Council believes the region can have a vision of the Twin Cities in the future, and the region can bring about its vision through decisions made every day. Some people think we can't shape our future. This is not very appealing. The region should not, to borrow Henry David Thoreau's terms from Walden, simply "practice resignation" as our approach to the future. Let's make the Twin Cities what we want it to be, rather than just what it will otherwise become. The nation of Japan is clear proof of the value of having a vision and the ability to attain it. In about 30 years, the country went from producing cheap plastic flowers and toys to manufacturing high quality engines and electronics. Japan was able to do this because it had a vision. It achieved its vision in a period of rapid overall technological and socio-economic change. So the speed of change is no reason not to have a vision, as some argue. The course of the 20th century was set in large measure by the discoveries made during the last 12 years of the 19th century. Inventors gave us the electric light bulb, the telephone,-the skyscraper, the elevator and the automobile. Those inventions made today's cities·possible. What are the inventions and other forces driving change today? How do we prepare ourselves for the future? 4 In its first 25 years, the Metropolitan Council has looked ahead to plan solutions for important problems facing the region. Now it is looking ahead to the next 25 years. What does this region want to be, to look like and to offer its citizens in 2015? The Council is responsible for making long-range plans today to help ensure the region's health and vitality in the 21st century. Setting goals for the region is a first step. As the Council begins to update its keystone regional plan, the Metropolitan Development and Investment Framework, it needs to examine the problems and opportunities the region will face over the next two decades. The policies in the framework will help guide our growth and development, but we need to know where we want to be in 2015--we need a vision. The Council is specifically charged by statute to prepare goals and plans for the orderly and economic development of the region. In addition, the Council has been challenged and encouraged to provide leadership in long-range planning for the region. Creating a vision has helped in that effort. The Starting Point The Council set a basic assumption in establishing a vision: To achieve the highest quality living in a community setting with the flexibility to accommodate the changing population and compete in a world economy. To pur.rue the region's future with a sensitivity and respect for our environment in our development and redevelopment practices. 5 Key Goal Areas Achieving this vision will require the region to be strong in eight areas. These are areas the Council, and we believe, the people of the region value now and will continue to �� into the future. The eight areas are as follows. They are not listed in any order of priority. •A Strong Economy •Effective Governance •Effective Transportation •Leading-Edge Telecom munications •Quality Education •Responsibility to the Environment •Arts, Culture and Recreational Opportunities The goals developed in the eight areas describe where we want to be, rather than ways to get there. At a later stage, it will be necessary to identify strategies to accomplish the goals and the appropriate actors to imple ment them. In addition, some kind of measures are needed to detenrtine whether the region is meeting its goals. This document includes examples of possible measures for each of the eight goal areas. 6 How the Goals Were Developed The goals were drafted by small discussion groups made up of Council members, s,taff and members of the Council's Minority Issues Advisory Committee in the spring of 1992. The groups benefitted from ideas of national and local experts who spoke to them, including educators, economists, academicians, planners, representatives of the telecommunications industry and others. Then, during July, August and September, 1992, the Council met with a large number of local and metropolitan-wide organizations to get ideas and comments on these goals. The Council held eight focus groups made up of 100 Twin Citians'to probe their values and reactions to the goals. A town meeting; provided another way for groups and the general public to present their reactions to the draft vision and goals. In all, the Council met with 83 groups during the period (See Appendices for list). The Council reviewed the comments made at all these meetin gs, revised the vision and goals, and adopted them an 1992. The next step involves developing strategies to accomplish the vision. This vision is not static. It will change as the region's and the world's conditions change. The vision will be reexamined after the Council completes its revision of its Metropolitan Development and Investment Framework, which is the Council's plan and strategy for managing regional growth, and periodically thereafter. The Council expects to adopt a new development framework at the end of 1993. 7 Where the Goals Will Take Us: A Summary It is the year 2015. The location: the Twin Cities Metropolitan Area. We see a region that is a strong, well-established player in the global marketplace. We realized many years ago that metropolitan areas, not nations, would be the key economic competitors in the international playing field. We realized we had to be more organized in the way we bolstered the region's economy. Our young people are achieving their full potential in school; our regional quality of life has attracted talented people and dollar investments; and we've adequately invested in our essential infrastructure to support economic activity and the basic needs of our urban society. The result has been an improved regional standard of living, supported by substantial job growth and a diverse economy. Greater Minnesota has prospered from spin-off companies and jobs located in the region. The economic health and vitality of the Twin Cities Area has helped form a strong state economy. Communities in the region have willingly cooperated in seeking business, jobs and revenues based on regional interests rather than the interests of individual communities. This cooperation enables the region to compete as one economic unit in national and international markets. We've made the region a leader in the use of technological advances in transportation and telecommunications, which support the economy and quality of life in the region and in greater Minnesota. Our telecommunications system uses leading-edge technology to link our voices, video images and data with destinations within the region, and around the state, nation and the 8 globe. Telecommunications is now considered as essential an infrastructure as transportation, sewers and education. Toe region leads· in using technological advances in transportation like "intelligent" vehicle and highway systems. At the same time, we've made better use of the facilities we have by managing travel demand and charging users a variety of transportation "prices," like congestion fees and parking surcharges. Our transit system, now very consumer-oriented, has more passengers each year. Our major airport is an international hub, with direct flights to cities around the country and the world. Government at all levels has become more innovative and cost-efficient in delivering services and solving problems. Government roles are clearly defined so that services are delivered at the most effective and efficient level. People have responded with renewed interest in governmental affairs and higher voting rates show it. People feel a stronger sense of belonging to their communities within the region, and they participate and feel comfortable in their community. At the same time, people feel that they belong to one metropolitan region. We still have a strong environmental awareness. But we think less now about mitigating negative effects on the environment, and more about designing urban development and its support facilities with nature and people in mind. Our air and water are cleaner; our waste is less toxic and we're producing less of it per capita. We can swim and fish in our three major rivers and in our lakes that have the greatest potential for recreation or water supply. Toe region bas an abundance of accessible recreation, cultural and information opportunities. Health care is accessible to everyone who needs it, but most people take responsibility for 9 pursuing a healthful lifestyle. Families of all types get the support they need to care for their family members, including children and elderly people. The percentage of residents living in poverty has declined. Housing is affordable for more of the region's residents, and it is designed to suit people at various stages of their lives and people with special needs. More employment opportunities are located near affordable housing and more affordable housing near new jobs. Our aging neighborhoods have been rehabilitated and a sense of community strengthened there. Our streets are safer and crime rates lower. We've planned the region's growth into a pattern that has reduced traffic congestion, the cost of public services, energy consumption, air pollution, and more of the negative effects on the environment. Urban design concepts have helped create a sense of place, with open spaces, natural features, public buildings and transportation facilities. 10 Goals Introduction This document has eight goal areas that are the keys to a healthy, successful Twin Cities Metropolitan Area in the year 2015. The goals, taken collectively, will bring about a high quality of life, elements of which we already enjoy today. People live here because the region has more appeal than other places do. People here like the region's living conditions, physical surroundings, community life, work life and leisure time activities. The goals will help preserve the quality of life that exists today and efirniiiiate ameliorate factors that restrain all people from fully enjoying what Mwo.n,,_..., AA .................. , - the region has to off er. One of the themes crossing many of the goal areas is that all Twin Citians do not share equally in the region's quality of life. There are a number of socio-economic disparities experienced by people of different races, ages and levels of income. The disparities also have a geographical dimension, such as ones that arise between the older communities (essentially Minneapolis, St. Paul and first ring suburbs) and the newer developing suburbs. The 1990 federal Census surprised many. It said the disparities grew significantly during the 1980s, in spite of governmental and private sector efforts to deal with them. The problems will require actions (strategies) to address them. eYt strateeies m\:lst follow. aRd cam' o.Yt �oals. The focus of Metro 2015 is on goals. The goal areas are interrelated, and could be grouped differently or subdivided in a number of ways. For example, teleco mmunications will influence the transportation system (telecommuting rather than driving to work), the education system (teaching via two-way video or as a change in 11 the school library as we know it today), or the economy (the fast transmission of huge amounts of information across the globe). Preserving the region's natural environment or protecting its open spaces helps make the region a desirable place to live and do business. Metro 2015 suggests some, but not all, of these relationships. The goals do not imply that the region is an island unto itself. The economic goals reflect the importance of being a player in the state, national and international marketplace. Strategies to carry out the region's vision and goals will be coordinated with plans of state agencies and other units of government in greater Minnesota. Strategies for economic development, transportation, telecommunications, and physical growth and development, in particular, will evolve in conjunction with state-level planning. A Strong Economy For many years the region has been a good place to live, work and establish businesses. Its economy has experienced steady employment growth and relatively low unemployment rates well below those for Minnesota and the U.S. Manufacturing industries, with higher paying jobs, gained some jobs, though service industries have gained the most. The region is home to 15 firms on the Fortune 500 list of industrial firms. In per capita personal income, the region ranked sixth among the 25 largest U.S. metro areas in 1989. This success has largely been credited to the region's skilled labor force and to our diverse economy. But in recent years a number of clouds have appeared on the economic horizon. There are questions about how well we are educating our labor force; the computer industry has reduced its work force; global competition is increasing and world markets are changing. In addition, there are concerns about inadequate productivity growth, our ability to maintain 12 competitive advantages in the computer and medical fields equipfhent, and the demand for government services versus the willingness to pay for those services. The region's future success is dependent upon increasing the pool of highly skilled jobs filled by highly skilled labor, both professional and technical. Trends in the 1980s raise serious questions about whether it is possible to greatly expand the number of "living wage" jobs. For example, the biggest increase in employment during the decade was in the low paying service and retail sectors. Employment is expected to continue moving away from the central cities and into the suburbs over the next 25 years. This suburban employment growth, if it occurs, will mean that people will be travelling to the job-rich suburbs in far greater numbers for service and retail work, but many will not be able to afford the higher priced housing in those suburbs. The region's business competition is no longer S:c?!�� t-he other §� e+t-ie&-in the U.S.; it is other �efr.opgfilfilh,�as aties around the world. Is the region prepared to compete and thrive in this •• -M%-; --*">--x,.;---"�.:::-•• m ... � changing environment? Goals 1.In the year 2015, the region is recognized as a major player in the global economy, based on the following: The region has a highly educated workforce with skills important to the regional economy, and with the ability to learn new skills as the economy changes in response to the national and international economies. These would include a wide range of skills-for example, in design and manufacturing as well as in management and finance. 13 The region has a quality of life that attracts and keeps both businesses and a highly skilled and adaptable workforce. Infrastructure developed by regional and local governments and by the private sector supports regional economic activity and encourages job growth that meets the needs of the population. Infrastructure financing--using cooperative arrangements, where possible--reflects the full costs of facilities through their life cycle--including costs of capital, operation, maintenance and replacement. 2.The region's economy experiences steady grow�h in the gross regional product per capita, thereby increasing the regional standard of living. The region's economy is diverse and flexible in terms of using regional strengths and resources (labor market, investment capital, infrastructure, natural resources, etc.) to adapt to changing regional and world markets and to develop, attract and retain industries--and the jobs--serving those markets. Th��t,;;�rs1h�ifies'sr@"ifd��'lio§ment�p�em"oavecrose��t�r.cctmrini'ilica'lf6ns.Jant. "(._�J;!'Jb�N'a.,,_........-�,.".�";•0\•NW';.v)r,•.,¥, -,.,;},., ·1,,,,-_ IW,',._\�•' , o} �'Nit>,.',·..,, ,�...n,. .•••• :t,�,:,},".,..�v,ffl,...,N��J:-:0 acci �'%·1,wemmra1ran�t1aa:�..,,,,�nier.s1futmaowmetroooUr�e�s1aa5nua¾t�off : ��-;«-l!.�?,�;,;:-t�",«1,.�A"<'-.""";�.M\,y.1-M.;-»»�,��.,..-��;N.fliWi.��kM-:-.��Ai.:<�t�. ,�� 3.Job growth provides employment that raises the low and middle per capita income levels. The region provides employment opportunities that offer a living wage and ensure employment rates and wages for women and people of color equal to those for white males. 14 4.Employment opportunities are located close to the workforce or are accessible by public transit. Affordable housing opportunities are available in areas with growing employment. Workers have affordable day care options, and have natural amenities nearby. 5.Communities in the region are ffiefe willing to cooperate in seeking business, jobs and revenues based on regional interests rather than on the interests of individual communities. Such cooperation--assisted by afr fHef0 equitable tax structure, an ffi0fe equitable provision of-* needed services and mefe appropriate use of public investments in private undertakings- helps enable the region to compete as one economic unit in national and international markets. Communities" cooperate so growth in one community in the region doesn't come at the expense of another communio/,flifp�IR.MJ�19.I:�ff.r:I!�;f�°&l�Y!.- 6.The region has more corporate headquarters of public and private firms, ��l-- ¢,lmt�n"s�J!L!Jf�t�iiP]'r-�"�fi:!r�:p·�e�]�, �{J;;�'j'!l��' and small business em:ironment aHd firms that lead the world in research and manufacturing in select areas. Banks, insurance companies, venture capital companies and other sources of investment capital in the region provide adequate funds to invest in start-up and expansion of local firms and to nurture entrepreneurial efforts. 7.The region's businesses and residents get value for taxes paid, and the t� tax structure does not create a noncompetitive environment for business.dfstReentiz;es to'new on�*Daedine: tmsieesses. 8.The growth of the regional economy is based on a regional economic development plan that is synchronized with the state's economic development plan. 15 Measures (comparison over time) Unemployment rate compared to other urban areas Per capita personal income in region compared to other urban areas (per capita gross regional product compared to other urban areas) Percent of population and target population groups below the poverty level compared to other urban areas (percent of population above 150 percent of poverty rate) Employment growth rate compared with previous years and comparable regions (employment growth rate in specific industries) Mix of industries in region compared to mix in the nation (diversity) Composite measures of tax burden on individuals (r�nkings) and on businesses (rankings) Per capita income for women and racial and ethnic minorities Ratio of worJcers in manufacturing to service and retail sectors Number of persons unemployed more than 26 weeks Percent real growth in average wages per worker Ratio of the region's average wages per worker to the national average Accessibility of employment by public transit Number of businesses with child care available to employees 16 Effective Governance Government in the early 1990s has fallen on lean times. Regional and local gover:iment has been experiencing declining federal support; political leadership has been criticized or challenged; and many citizens feel powerless and pessimistic about their government. There are myriad forms and layers of government, which makes coordination difficult. Government's formal and informal structures may be unable to address such problems. The challenge to government is to bring new people into the process both as participants and in leadership positions, particularly minorities and women whose participation in the past had been limited; to develop a renewed sen�e of confidence in government's ability to solve problems by allowing decision-making at the neighborhood or community levels where innovation and flexibility can be encouraged; to act decisively and in the broader regional interest at the regional level for those problems that need a central focus. A renewed emphasis on governance--acting collectively to solve problems--is essential. On the other hand, the public needs to have realistic expectations of government. Government cannot, nor should it, be viewed as the ''be all and end all" problem solver. Some issues are more appropriately addressed by the private sect(?r. People and governmental units need to think of themselves as being part of one region. The region i[�f£ifffi eannot be a collection of cities all competing against one another. In governance, there is often a need to balance com peting priorities-for example, the desire for government to be "close to the people," on one hand, and, on the other, expectations for government services to be efficient and economical, often requiring centralization. The Metro Council also sees itself--and other regional agencies--performing a central governance role i .�ff��9iq'-£i.!ll:g.(n§.f:fgqye'ii1:fiw�(ar �p�fs. It includes strong leadership in the resolution of 17 regional issues, bolstered by additional authority to decide how-ff$aefal; state and 'regional funds.... ,. .... ·•...... -.(,_ .,,,:.·,;.·· are spent in the Metropolitan Area for public infrastructure and to determine where and when public subsidies will be used for facilities of region-wide importance. Goals 1.In the year 2015, all segments of the public have opportunities to participate in decisions that affect their lives and the future of their communities. Citizen decision-making takes place at the neighborhood and community level, whenever possible. Some decisions that are of a larger community interest or address city, county or regional goals oi issues need to be. «� decided at those levels. Yet citizen decision-making is fostered in every level of government. Greater numbers of people of color participate in all levels of government. Eliminated are past perceptions that people of color only represent singular interests of their respective races or ethnicities. Decisions made now reflect the collective population because they ai:e based on diverse perspectives and alternative ways to look at issues. 2.Peoole have confidence in thei-r Elected and appointed government officials lft��.Jp£ �s�h�Jl��E�� Toe region has a high 1eve1 of political participation (such as voting and the number of persons running for office). Participants and leaders are more representative of the diversity of the region. 3.Government roles and responsibilities are appropriately and clearly defined, and are based on realistic expectations of what government can do. 18 Regional and local policymaking and service delivery occur at the most effective and efficient level, and gaps in services are closed. The role of government reflects the results of a review of strategies to increase private actions, thereby reducing dependence on gov�mment for services. 4.Governmental units meet the community's current neel1l��f�ficip]'��E.�� by redesigning the service delivery system and using other innovative approaches, public or privat��!W�l�F#'.Ji'ke, to deliver public services. 5.The Metropolitan Council is the region's leader for policy planning, which provides direction, integration and coordination of regional services. The Council, ffii_�qqJ.er®ci.n;wit��Ifer,w.x ................ ...,.. .... *�-��---.-.-4•,'>A..,V.,,.4.-.,.{.;,$ omtsfofgoveinrrient decides how federal and state funds allocated to the Metropolitan Area.-.>:«.-.. x�,-�-.•. � .. .-.-.·.v· .. · ... ......., for public infrastructure will be spen t. It decides on major direct and indirect public investments that support facilities of region-wide importance located within the Metropolitan Area. The jurisdiction of the Council may well include a larger geographic area. Measures (comparison over time) Opinion poll measures on people's confidence in local government Voter participation rates Number of service redesign projects completed Level of Metro Council participation in public decisions reg arding facilities of region-wide importance sited in the region 19 Effective Transportation The transportation problems the region faces today and in the future stem from our need and . . desire for personal mobility, as well as from our present spread out urban development pattern. In addition, the system is unable to meet the needs of economically disadvantaged and transit dependent people, which results in immobility and isolation. The dispersal of jobs into outlying suburban locations exacerbates the problem. �B£ffi'.:4tJ.�gt�� Our life &tvle involves pursuing many activities in many locations. And to meet those needs, the automobile- specifically the automobile with a sole occupa nt--has been the mode of choice�fle,1"(c@ m:%��1Y};:�@wr§'p]l for the vast majority of people. However, using our cars as vehicles to carry just one person has been a major factor in causing our transportation problems. For example, it is primarily respo nsible for the growing problem of congestion during peak travel periods. Between 1972 and 1984, the number of severely congested freeway miles tripled and will continue to increase. With many cars having only a solo driver, our extensive highway system has not been used efficiently� During peak periods, average auto occupancy has dropped and people now make �ore trips than they did 20 years ago. Heavy use of the single-occupant auto is also a major factor in causing the negative environmental effects caused by the building and operation of our transportation system. It is an expensive way to move people. And it has promoted a spread-out land use pattern that makes it difficult to serve many parts of our region with economical transit service. Transit means any vehicle (a 6af'; bus, train, van ,� ��r,). that has two §JJ,w_� people in it. Transit can increase the efficiency of the transportation system. But bus ridership declined by one fourth 20 from 1980 to 1990. Carpooling has also fallen. Thefe,�is hope:l of�be::§itu.f.e:tf,�ca��[Jhere is''� sizable l:fo,.,,ever, tl=iere is a base of transit users from which to build rldeHfiip. The challenge ... .... · .. · ... -�-� ......... . facing the region is to ��IyJ�s cS� FF1ak0 these modes FFIO:r.e attrasti,,·e 'h'hil·e making llS@ of.:single- occupant vehicles. less attracti,,•c ane son,,·enient Goods, like people, need to be moved efficiently throughout the region and to the state, national and world marketplace. A system for goods movement by truck, barge, rail or airplane needs to be in place. Airport capacity is another major issue. The region risks forgoing substantial economic gains if adequate airport capacity is not available as needed in a timely fashion over the next 25 years. Goals 1.In the year 2015, the transportation system moves people ans gooas within the region and to the state, nation and world efficiently, cost-effectively and safely. The transportation system is developed in ways that preserve the integrity of the environment, allow for economic growth and development, and support other regional goals. The si.rsteFR al1oY.'& ror rao1e transoort of eoOEls b1,· air. roae. rail or waten·.,cw. The system also reflects the region's leadership in the use of advanced transportation technology (for example, "intelligent" vehicle and highway systems, high-speed rail, hover craft) that maximizes the system's capacity and efficiency. ?.-�-The region has a highway, rail, and waterway system that moves goods in and out of the region efficiently and effectively. 21 �-�-The regional transportation system balances demand and capacity so that resources are used most efficiently and the environment is least affected. This is achieved by managing how existing facilities are used--for example by reducing use of single-occupant vehi�les, changing people's travel behavior, such as the time that people make trips, reducing the number of trips, changing the mode of � ff�� to encourage use of bicycles or li9!1E!�1{et:)� telecommuting. In addition, incentives to use transit, as well as disincentives to the single occupant vehicle, will be needed in order to get the maximum use out of the system. The system also balances local, state and national mobility needs. ,i_-, �-�-Transit is the preferred choice over the single-occupant automobile for mapy more people. An adequately funded and improved transit system makes reeular route traAsit. such as buses or light rail transit, paratransit and ridesharing more attractive for all users. With improved safety, comfort and convenience of riders and drivers, the transit system increases the people-carrying capacity of the transportation system as much as possible, serves the needs of transit-dependent. and disabled people, supplements the metropolitan highway system, maint�ins and enhances the economic vitality of the central cities and allows for intensified development in other economic centers. The system meets the needs of �J re•,•eF&e commuters--that is, people who {fa�eEge from the central cities to suburban job locations, or �-X�u,.,.. from one suburb to another. Land development and redevelopment create an environment that promotes and encourages increased use of all forms of transit. ?· 4. The efficiency of the transportation system is improved, and use of the system reflects the environmental, social and financial costs to society. For example, the region is a national 22 leader in using a variety of transportation pricing, including "congestion pricing," "peak-period pricing," parking surcharges and single-occupant vehicle taxes. 6.The region has an air transportation system with the capability to meet the �� R.�!@"9§�:�! asma0a from businesses and people in Minnesota and the Upper Midwest for air connections to the nation and the world. The region's major airport enjoys the presence of "home base" commercial airline facilities, international hubbing and a competitive airline market, with the sizable presence of several national commercial airlines. Direct passenger and air freight services are available to the world's major cities. The region's major airport, and its satellite airports, provide convenient and safe air travel, and cause the least amount of disruption to the environment. Measures (comparison over time) Miles of congested freeways Vehicle occupancy Transit ridership Air quality measures Application of "intelligent" vehicle technology in transit service Airline takeoffs and landings Number of international airline flights from Twin Cities Area Number of people living within noise contours for the region's airports Number of nonstop airline flights Miles of bike pathways Volume of goods moved 23 Leading-Edge Telecommunications Telecommunications--and access to it--will become increasingly vital to the fundamental economic health of the Twin Cities Region in the years ahead. That's a lesson history can teach us. This region grew to national economic prominence in part because the railroads, then the highways, then today's jet airplanes gave the region's businesses good connections to the national market. These facilities gave the region a way to overcome its remote inland location to sell and ship its ideas and products to the nation, and more recently, to the world. Now, telecommunications is increasingly being viewed as the next key infrastructure, as important to the region as the railroads and highways were in the region's economic history. Telecommunications involves the transmission of voice (phone), data (computer) or video information. The region's businesses need the same access--or better--to advanced telecommunications as businesses in other regions enjoy in order to compete in a world marketplace. In the future, telecommunications will continue to have a profound impact on the region in education, in lifestyle, and in the business setting, among others. In addition, the region needs modem, high-capacity telecommunications services because people need access to information within and outside of the region and because telecommunications offers seemingly boundless opportunities for people to learn, earn a living and enjoy a higher quality of life. Unequal opportunities, experts argue, will lead to a society of "information rich" and "information poor." Telecommunications could help solve other problems. It could aid in solving central city problems, where, for example, the presence of advanced telecommunications facilities could help offset the 24 disadvantage of high redevelopment costs. Telecommuting could also reduce peak-period travel or travel in congested corridors because people work out of their homes. Ffo•�.·es,:e.r, prh·a.te p(o.,.idert of advaneed teleeofRra,,mieactioAs eapabil:fties Atis,·e Aot"a,pgradeel their em:1ioment here as raoidl•,• as they !:lave in ethe'r re!:'.ioAs. 1 High-capacity fiber optic transmission lines are not available throughout the region. If the transmission of voice, data and video experiences a boom as some predict, the existing infrastructure may not be adequate to do the job. By and large, governmental units in t.he region have their own networks to move data or communicate with their police and fire departments. Telecommunications--and facility-sharing- may give them a way to provide more effective services more efficiently. But there is no coordinated approach, or public sector planning, in telecommunications. The new 800 megahertz system, a proposed transmission network for local government communications in the region, may provide a window of opportunity for coordination, as does the state's Statewide Telecommunications Access and Routing System (STARS) approach. Without such networks, each unit of government has to made its own arrangements with telecommunications vendors to get its needs met. Goals 1.In the year 2015, the region has "leadin g-edge" telecommunications services readily available to all businesses and homes. High-capacity telecommunications transmission facilities and networks move information within the region and state, and to national and worldwide destinations. 25 The region's telecommunic:itions infrastructure gives businesses a competitive advantage in producing and selling products and services to the nation and the world. In addition, telecommunications connects people to the fibra:i.yarid;�other information aH4 resources they . ................... .. need to learn, work effectively, make decisions, and enjoy the richness of the arts and cultµre of the region and the world. 2.Telecommunications infrastructure is considered as fundamental to the effective functioning of the region as are roads, sewers and parks. 3.The region has the telecommunications it needs· to reach its social, educational, quality of life, and economic goals. The region 1:1ses telecornmunicacio.ns :echnolo·gy t.o its fullest extefft to pro�cide cost efficieat ·a·ccess to infermation and··servi:es !-Or all i1s i:asidents. Tii:e regi·on 1:1ses :elecOf.HfRenisatio,ns as a tool to iFRnlemeRt r2?iibRa:I oslicies_ Government agencies throughout the region use telecommunications technology to improve the quality, effectiveness and coordination of their' services. Measures (comparison over time) 9-:��r�"'i miles of fiber Optic cable iR pJase, use Of personal cellular telecommunications devices and �-��g;vf.i;t;.�9,%:��. or other new technology. Region's telecommunications ranking nationally and internationally Public-access points to data and information Use of telecommunications in development and redevelopment activities Percent of population that is "computer literate" 26 Percent of population with access to a personal computer Percent of population with personal cellular telecommunications devices Quality Education Observers of the region's education system--from education, business and government--have said that our schools are better than the rest of the nation's--but not good enough for our future. They point out that we have a wealth of good public and private colleges and technical schools, and that our elementary and high school students have traditionally performed very well compared with those in other part of the United States. They also offer some criticisms that are summarized below, and lay responsibility for the conditions they see on the doorstep of educators, parents, the individual communities and society as a whole. •Schools aren't focused enough on helping students learn; they are organized and operated for t,be:::"free<:fsfof adults, not for theii:J;uerits ;•oune: oeoole .. w'x-.�:.;4 ��A-";,,.:,,., ·-:-.. ·., ·\--:I.>.-;-;-�._ •.. :: •Expectations are not set high enough and there are not enough incentives for students or teachers to do well. •Athletic achievement is valued more highly than academic achievement. •The region's high school graduation rate is high, but it may be so because the standards are low. Most states reauire 1'Aore instructional ea¥S aRG l:rours eer da!, teaa Mianesota. ans onh• a: &R1all oereentaee of ).'4inResota's school districts ·ha.,·e furmal homeYi•orlc= aolieies. 27 •The education system has not met ridisrifaf rec�.rd�f"'ine¢�tliig the educational needs of our•···· . ' .... , growing population of people of color. Nearly one-third of the region's high school dropouts in 1991 were students of color. •School boards have been criticized for focusing on financial and administrative matters at the • • expense of students. School boards have also been called monopoly systems with exclusive franchises that are reluctant to allow others to create alternative school options. Businesses find an increasing number of high school graduates ill-equipped to perform work that requires even basic language and math skills. Yet, one-third of Minnesota's high school districts have not established minimum standards for graduates' reading and mathematics skills . According to the Minnesota Literacy Council more than 500,000 Minnesotans are unable to read, write, compute, problem-solve or cope with changing conditions sufficiently well to meet the requirements of adult life in our society. The question arises: What kind of education are our young people getting for the money we spend? In addition, how well is the system preparing young people for the global economy of the next century? Are students being prepared to learn throughout life? Is the retraining that is occurring sufficient, and is the retraining taking place from a solid educational base? Goals 1.Education is valued and supported. The regional community places a high value on educating its children and youth. It is a top priority to provide financial and other resources so that students can develop the capabilities they need to reach their full potential. 28 2.Education is focused on students, and helping them learn is the highest priority of education. All students are interested in learning and know how to learn--they can use information, solve problems and work in teams. Being "educated" means being equipped �th the academic, social and personal skills to earn a living and ��(;p�jfilW:J· .. t§I[�J£11f t�¥l�W�� rapia.Jv�c1iaifgi0g;°socfetv/sucfi afftmctiOR well as a citizen, worker a-HG Qf parent. in a raoidli,rIN'. �-·•••""'-""-�·,llN� :,-:,..,. ,v..9;;.,.. • •· "" !.-, ·6hane:tn·e: ·s-ocie�· ,. The community sets high expectations for students. It stresses students' efforts and honors their academic achievements. Students understand the community's expectations and know they have to demonstrate mastery of specific skills in order to graduate. 3.The community encourages innovation and excellence in teaching that improves the way _ students learn. It supports and rewards these efforts. Schools and teachers are rewarded based primarily on results. The teaching profession slrnuld ee is made up of people who reflect the cultural diversity of the region. Teaching careers are sought after by people who have a passion for teaching and learning. People with diverse backgrounds, including multi-cultural experiences, obtain certification using their education, practical and professional experiences. The profession attracts and retains ��YIB�!r��!an�!!�N! the eest educators. 4.The governance of public education is broadly based, in volving parents, students, educators and many others in the community. 5.A restructured school system that provides expanded learning opportunities, beginning with early childhood, has replaced the conventional K-12 public school structure of the 20th 29 century. Families and students choose among a broad range of school organizations, settings and schedules. Students progress based on demonstrated competency of the material. Often, they are grouped across ages to learn from each other. }.fach of thetr Learning takes place in the community at business, government and other sites,� Learaiag enhanced by extensive use of technology. �r�r.r.;r'-�!ib,_ __ a�''"'ff'' .............. ,trrm=·-�,...,..._......,�-.... -.. �-,11 .,,,,,.,._.��m�mr""·"a-""'t-�J:,.��,Bla,�:SJ �r,�tL�� ¥.1 .. �1�t.JE:£La.;'"'-��F-11S�.:J�-"L..'1;,�1 .. �.�, .. -�Nri ,.;..mt� �� neee�,---.. aalsuoi"'"0rlfttrer.rei��cdnom--:--taffe!Sfffioo<$·t1ie�·<liwr-ra�mi:fiti'r,;''�fe1,:..;,�.; .. ,:, . .;.v.,;.!Y��-h�QE. .. "'A�.,:;J;;·:--�g�....,_.�W""M..-.·u'•.;.. .,,. iA ... ,.-�...,...-�"»m:-... -.-.� .. -.,,:..,_.�-�.-;,,.��n...,��t-J.-;:�� ;e. The entire community--in a cooperative, coordinated effort--joins teachers in working to nurture, support and applaud all student s in their educational efforts. It provides a safe, healthy environment that promotes learning. Families are actively involved in their childrer:'s education and create a home environment that encourages learning. Schools are "community centers" where citizens interact with students to help them learn. Businesses, civic organizations, social-service agencies, and secular and religious organizations provide learning opportunities and recognize academic achievement. 8.+. Cultural differences are celebrated and shared. Students learn about and respect the < practices, beliefs and historical contributions of afw'ioe"arfayJci'f different culture��'f�y:f'� �N>,��<.;.·.�:<v»»-< .....;��9.� i.9�� Ia -orEler �o snare m.oHr full): iR t.Ae global sodiety� ;st,uElel)t-s san·sF3ealc languages of the world in addition to English. 2.&. Higher education in the region is available to all students based on ability to learn and choice, rather than on ability to pay. 30 10.9. Higher education facilities and programs are coordinated so they serve the educational needs of the region's "customers"--students, employers and society as a whole. Each institution has a well-defined mission within the larger system. Institutions share faculty, facilities, libraries and telecommunications to meet needs efficiently and cost-effectively. !1-W Educational institutions prepare students academically to continue their education, and provide linkages that encourage and help students to make transitions from high school to post-secondary to baccalaureate degree programs. They also provide ample opportunities for employed adults to attend graduate-level programs. J.2.-++ The region's higher education institutions foster research and development as part of their mission to educate students and generate discoveries of new knowledge. !3.P-fF..2F,ffi fa•eryone continues to learn throughout their lives. The community--business, industry, labor, government and education--has collaborated to reach the region's educational goals. The region is providing affordable continuing educ ation alternatives and opportunities that are flexible enough to meet the people's needs for job training, citizenship, a better understanding of the complexity of the natural environment and other learning in a rapidly changing world. l�Y Er.•ef)•oee ea& ™�� opportunities for retraining and reemployment. Each student graduating from high school, technical or vocational colleges has the knowledge and skills necessary to obtain a job, and over the long run, to compete and be successful in the employment market. 31 15.-±4 The region's educational system produces a highly-skilled and motivated work force that fuels our businesses' efforts to grow and compete in the global economy. Measures (comparison over time) School readiness--an indicator that the student has the health, nutrition, developmental skills and family support necessary for success in school, compared over time Average state score on school achievement tests as a ratio to the national average, or, as an alternative, the proposed competency-based graduation requirement of the Minnesota State Board of Education (1992) Schools with drop-out rates over 10 percent ("drop-out" is defined as a student absent from school for a 12 month period, a definition used nationally) Percentage of high-school and college graduates who are pursuing advanced education or training one year after high-school, compared over time Percentage of recent high-school graduates rated average or better in work skills by their employers, compared over time Progress and status assessed at regular intervals throughout school years Percentage of students of color completing degree programs, compared over time Extent to which higher educational institutions attain measurable quality indicators as defined by their customers (students and their employers) P.ereen'�or'Sfilaentsr··i;-ricien·�tflot-ei11n1r··":aua�l1,:0,;,""""""',!!l$1�tl--=�-...""',.,,__,J?f0,,� � ..... � .... �,;"""-"�-��,g� Individual, 'i\'ell Be�ng,. the Family and Community �ill!!� A decent, affordable place to live, affordable health care and the safety and security of person and property are basic needs that must be met. Yet in 1992 the region is seeing a growing 32 disparity in the realization of these fundamental needs. The disparity is occurring along social and economic lines, as well as along geographic lines--between the older, fully developed part of the region and newer suburbs. The region has a formidable challenge before it in order to meet the needs. The crime rate, for example, has continued to go up, and the central cities are experiencing most of the growth. The lack of affordable housing continues to plague the region despite decades of efforts to deal with the problem. One out of 12 people are not covered by health insurance for all or part of the year. Moreover, the infant mortality rate--often linked to a lack of prenatal care--has increased for people of ethnic and racial minorities. Generally, health, housing and crime issues have disproportionate repercussions on people of color. In the future, these problems may be more vexing as the minority population grows and more people become elderly. Parents should be able to expect that they can raise their children in the best possible environment and that they and their family will not be trapped in poverty or hindered by discrimination. But in 1990, more than one of every 10 children in the _region lived in poverty; ·over one third of families headed by women had incomes below the poverty level. [fie... -. nei�ntfl¥e�t-1�J!J�Bt��,t.1[lfr;'p,Q.v.�11v��.{niiai nJgt&: I>or neools of soler. th's oercent �-=�-,.,,.9(:;��;,-.·�.ff. .,,_';-A.,,W.. •• ,.·n,.·�. ,_..._...,.-;:.,.�.�,(t:...-:.,,.�..v��-..:�.�...,.:A .,.1>,'$1- l'ir":.Ri'! ia OO�!ertv W3U?ll:1Gh .hie.her. As these issues are addressed, the region needs to foster a sense in its people that they have a personal stake in their local communities and in other communities in the region. The weaknesses of some communities can affect the future of others. People who have the means should be willing to give of their time and money to make the region a better place to live-- .,., .,., viable, progressive and constantly striving for improvement. This spirit of contributing and caring has been strong here and is an essential ingredient for building a better area in the future. Goals 1.In the year 2015 the region has a comprehensive, cost-effective system to deliver high-quality health care and related services with choices in treatment alternatives for physical and mental illnesses. All the region's residents have access to health care services. The region has a highly rated emergency response system. The region's health care system emphasizes preventing health problems and promoting health and wellness. The region has improved the health status of its residents based on a wide range of indicators--for example, reduced deaths and injuries of children from family abuse and neglect, a reduced death rate from cardiovascular disease, increased levels of physical activity of the population, and increased immunization for infections diseases. 2.All residents of the region feel _safe and secure in their homes, neighborhoods streets, sidewalks, schools and parks. They have confidence that public safety personnel will respond quickly and appropriately, regardless of where they live or their f�J!i mieoritv or economic status. The:reg�oa's ra:eking 00R1pared to the ratce§ of i,�oleet aed. m:operty orimes in otaer metrof)olitan_ are,as, beth, in tl:le eentral eities aed Sl:lburbs, are lower tl:laR the r�gioa'� raak ia eoel:llatioe size. Sales aed use of ille!!a1 drl:les ½lave substaetiau,,, aeereasee. 34 3.All types of family structures are supported so parents can carry out their responsibilities and their children can develop into adults who take responsibility for themselves and their community. The primary aim of public policy should be to strengthen the informal support system. Elderly and disabled people have every opportunity to remain l-i¥e independently as much and as long as �hef�cn"ef.cii�? possible. Extended families have more support to care for their members, and people of all ages support and care for each other. 4.The basic needs of all of the area's population for shelter, food, water, clothing and energy are met. The warning signs of widening socio-economic disparities recognized in the 1990s have been addressed. The percentage of the region's population living in poverty has decreased. Everyone has equal ?CC.�S�to_ opportunities for education, employment, affordable housing, leisure or social activities regardless of their race, color, creed, religion, national origin, gender, disability, age, sexual orientation, or status with regard to public assistance. Diverse cultural values and religious beliefs are recognized, respected and celebrated. 5.Residents of the region have a sense of pride in and belonging to their community, and a concern for its long-range future. The region continues to be an example to other metropolitan areas for its recognition of and participation in volunteerisrn, corporate leadership and contributions to nonprofit charitable and cultural organizations. 6.Housing is affordable and available for all income groups throughout the urban �� area of the region. People have the opportunity to rent or own housing anywhere in the urban ��D:f� area. 35 Appropriate housing is available for persons at all stages of their lives as well as for persons with special housing needs--people with disabilities, children, elderly and others. Measures (cor:nparison over time) Percent of population, especially children, living below the poverty line Number of reported cases of child abuse or neglect Number of teen pregnancies Infant mortality rate Drug and alcohol-related death rate Number of homeless people Percent of households below the median income spending more than 30 percent of income on housing Ranking of region among other metro areas in health care Rates of •,•iol@Rt crime and domestic violence DWI arrest and conviction rates Rates of sexually transmitted diseases, including AIDS Percent of pretax revenue contributed by major businesses to social programs, the arts and other activities Responsibility to the Environment This YisroR dbes eot d@'fiR@ �he ph):sital shar3@ of the region iR '.2Q15, '!'}OF tke direotioa ·of growth or 'd@Rsity of El"e•.•elopme.et The Go.1meil, with tl¼s -J:ielp of.the r3eople ·of the reg:ioe, intends to eoad1:1ct a t:horQ1:1g"1 e;r.cal.l:latioR, of its· csmmt Ale.E1=0,po/.ihu, Dei·e�t and [-1'11'€5-Emelflt F:=smraw<i»'k and anl/ altemc1ti:i,·e_ erowth FRan::u:�emeet stratee:ies. ie 1991. N@'.'i!@rtheless. the visioA: 36 sua:ctests soFR@ factors tha.t need to be C"oRsid.ered :n llile oreoaratioa oflhe region's qro,,,.th maaa!!cment olaa. The environment encompasses both the natural res ources of the area--water, air, soils, minerals, ve getation and animal life--and the developed landscape that consists of the facilities and services required by a large urban population. , ... ,,,_�··¼:u:-'j';�W,• •'h.-YY,/C".S•�N>V,t'�"�l,.'.�»>• ,·m,vt��--��·�'•'"?-�•,-·t�·�Cc•,-',,..,,,.......,._,.,,,��-. N-:;,�;-�•.�,..,,.,; strcamso--·1:1.1:1��,uore.n1;e\,ls: o:,u·ct one. :1,n: �l..e��1,,;0uimg:$ · ears ·:,mamtatntn , n\+r9At-!nr. , '-w3.let. :,�«,,.,/.-}..��,.-Jt•�•�JMV,,,_.,,j,-».�,Y.•,),:i;:,c...•},1.•;«•�:�: ' • •' ;,,•}'.•"• ..{W.-ww · (-�w.,V..-M-{.,...;; .-; ' .. !..�,�-,·�,.»:i�«9,;u . • -��,i:,t"'.«<,;��H, ci�.-i; quamv1ma:··iueture-te'asmg1y::a'ifficu1nis'tneSpopu1atroii"�m&easesr'··:'atifariaaras�c'einer'm0fe ',., N',.,., .. -� ....... ,,1·.,:-,.,tF.,/:I._-.,._.,,,., .. _. ..... ·. --· ;»,.,;.:•C.• • .-.1'\.. ,....., � ..... ,.,.. .. h,N,,. ,;;,,.,;;,, ,,..,,....._� ,·�y. N.'>.vu,-..-..·.·A,-M.._....._ • ..-v, r� .• ;-:.-.�:-.,.......;��J¢"��.{-*•·.{/\:{�_.;,;,,.,t,*"-.,».»;'\7x«� strict �.;+;� ir�wr .... �ave..mr··-�·"" aul��'"""'erfo1ro. ""W'-�iaf"'cltill&-�""��€ r;lli��w ... ��£1.,.J;,.,.,�RR�L�ll�&l;,�52i1t-�-�_,,,��Y/4ij�W,£U.t!So ,E �re:tconru1ues:Jo�¢i�to/f:anci�H-1��'$�Q�gin,mu�1P ��/,,��».,,..,_-..,;ir.,.,. .......... �_._ ... A ... ��.....:..�� ........ �� .... :-..w.· ••• >X�...:v:-t.(�t� �"¼N sofitcffit��urr�1:-�oethe-ro·o:P0f,tlfe'�asmr"mo1em?.1redacm&tiHaamt>anfcf§!�te @·�·iiO·W;>·S�!!..��,:.�� .... .......J;.¼-, . ...,;{;;---: • .--., .. a·..,,,;,.,.,._, ... :,.;,,< -i.-:·:.«�·!v:-Av&'S.R� .. -�'<M"...-.-.ve-X�):;,,..o •• ».-•.. :�%�� .. ,01 · '-'· · �...:. ,,,.��-.,,.,,�a�rtc.ueraLe1 •!#!..-� ... �-� ·,· _,uef�"'�oemenf'dmfi�''''te'''"'eri:bas':n1iafifiixcll�esulcso'ij],ne:»''n*onnient!'So'me··.-.-..,;,.�myb��:1?-'.ll:IJY.,�·.,..,:,..._........,.,..;�-....w,.,�gi.M/.t.t.J . .1:.w:.·.·.-.l.·�,;..,M-• .. /.«-;-;-.��1�·:,..·.t��-.,.�W°'�(.C9.{-.��--:-it-"'-w:::t.�<...-:-.�:...;,;•:•« ...,,,., IJla; '<··¾WV-��«, �veloifriie-ti ,.,,•,M«.-,i,;l?._.;>1.,·.-,Pl. ��-,.a�·�m�f�J�§JI@i,lJlL�• 37 •. %f � ��:X�kLq9'Jla� t,y_9,4g�r1towris that h�v� fong plliyed)Ji��C?�i�rol�Jn:J!it:�§ffi'aj!tJ:CI��]fi1f �1rnrtif1ife':'�f'the:reg1'·"on .. Iri 'addition, rn�jaC:saofirb'aii buslhess;�ent�rs/fii�"��rve'tfin,ta.__,-., ,.,;11;0 •• :,,»)'t••••••·•••·· ·�· , •... v.�-· , ;, ·· ......... , ....... ·•·· • · •••· -�· •· ··· · •• · -� ,_.,,.-,,. • ., ,.y,o, , . .V.N�,. .... .._., W,, ., •.•..• , h �e(·o.n��Tpctivity. ',:�nez<§Jae:-:':�ar�r.:rn�tie··"'foonii.i'v�*s:0hfe�-a"e,f�nera�W-Ro�W�n�meYc�rnif� � · �� m,o,: �"'x,; • .--...,"'. ,..,..«.».,..-»or-<-..:wM.g -��-... -.�/.·. -... ; ... x;:�.:--.... -;..:.-.-. •.. _......,...NM,-.-,-�&�.Y»: .......... -� .... ��* .. ..;�XIOQ,' .. .-.�x-.�-�<-."(10, "'&. %�""�,r,,...·=1•· �..,..,,,. ... ,�l.��,,�:""*"''�·--·1a.�%��,�-�--·--'"'m· . �<'�e'.�� "-��-ic.Jome .. u.e e O · e ." ec1SIOJ1>Jli:IVC':lc:1Nem · '.uiw:;;ulSLOn . e e�o , · ace.tiw.i1ia-U1'f:Sl:lme·:.. . ;.. . .;¾��>-,,,. ,. . . .. --A�v-.,_,,«<'-¾,,,,.'-"<mY��--�V '• ns.-. .,,-,.��i�t.x\< ��-��J!Lo!t Toe ree:ioA faees maier ehallenr:es in ou,rsuincr these roals: a •Th.e Metropa.litan A.:ea FAay a.e larger than today's 8e,·e0 CO\lnty 'Metropolitan Area .. We· eeee to co'£lti:nue imprm,·ing water quality througJ:i better wastey,·ater treatme0t as 01:1r pop.ulati.oa iAereases, .effh:1ent staAaards ·eesgme more striot,, aael 'cosg go l::lfl- •The amd.uRt o'f pollution 'fro1:n "nonpoint'' sourees {for e*ample, ftoffi farms aad paNed parking Jots) R1ust substantfal�· decrea£e. It will require, chaages in the. pers·oRal, household and e.usiness ot·a·ctices of oeoole ie the recrion. as well as those 1:1astreaffl: bf t'he regjon. •We Rees to maiAtaie the F@P"iOfl's eomoetit:i•,1e a@,1anta11e i-H wat-er resources e•, maaacincr theffl: w-isely. •We Reedno red:uee the amo:unt of waste we crenerate a0e 'fi0el eroE11:1stir.10 reuses for it rather thaR e1:11jrieg it ia lafldfills. •We eeed to make better cl:1oiee_s ia tlie WO:)' we de•,•elop ·our-laed, to ffliRifflfae tl=ie imeacts OR: the e0,1:iroAH1@Rt anEi ·co ·R-Sider the full ra0£<0 .ef ow.r&ical. ecoaemic aea a&ocial GORSel:il:10RC0S. •The regioe Reeds to de'>1elop iA a manfler that alloy;:s as to eco0omicaUy aae efficiently orai.cide the f1:1II raAe:e of mbaA facilities a:A.d. ser.·iees. 38 \Va need to retain the hi:Storic, se1Hral co.le of the do•,•,·nto:wns of ),4inneapoli:S i¼FH¼ St. Paul, @\·en as tl,e tegfen .continl:ies to developed outward. •"Jle need to iecrcase the to:ncentration of developn1enr in the mafor subi:lfbaa t:n1siness f , .c·enters so EJ:iey tan become -ad'Elit,of!a'l l=iuhs o acm·ity. •\'!./e need to arrest :he physi£al deterioration of l=iouscs and pusinesses, and bring deteriorated areas iA,1.0 p.rnducti•,·e use. •We Reed to de,;elop and retai-n a sense of place aed a local seese of distinctivee�ss ·Nithin the urbanized area. i \Ve need to concinue to eoraFAunicate am:I ed'ucate on the i:mportance of pres·ep,cing the emcironmeat If the Metropolitan Area of 2015 is to be a better place to live in than it is today, there will have to be a closer relationship between the natural and the human-built environment. Past degTadation of the natural environment will need to be corrected, and urban development will be fully integrated into the environment. New development will put greater emphasis on good urban design and functional efficiency. The end result will be a metropolitan area that is an attractive, well-functioning and exciting place to live for all of its residents. Goals 1.Large tracts of land with high-quality or unique natural resource and scenic values will be available for public use. All public waters have public access. 2.All natural watercourses, including wetlands, channels, floodplains and shorelands are sufficiently protected to allow them to function naturally. The region continues to be "water rich," and with careful management of this valuable resource, meets the multiple demands on 39 groundwater and surface water. The region's soil and mineral resources are carefully managed. 3.There is swimmable and fishable water quality in the region's three major rivers and some 100 lakes with major potential for recreation or for domestic water supply. Levels of nonpoint-source pollution generated locally are as low as possible under existing technology and within economic constraints. Levels of such pollution generated outside the region are substantially below those of 1992. 4.Regional sanitaiy sewer service is of high quality, affordable, and available when and where needed within the urban service area. All Residual materials from wastewater treatment plants are put to beneficial uses. 5.The region has reduced the per capita amounts and toxicity of waste generated compared with 1992 conditions. Reuse and recycling are at the highest level that is technologically achievable and economically feasible. There is little landfilling of wastes. There are no more major pollution sites to be cleaned up, and all previously contaminated sites have been put back into beneficial uses. 6.The region attains or exceeds all federal and state ambient air quality standards. 7.The physical development pattern of the region is directed toward encouraging land use patterns that reduce traffic congestion, energy consumption, air pollution and negative effects on the natural environment. 40 s.All decisions about qe.·efoprrieot refle,cfa-stro:i:i..fenvirgrimeri�alp'ersp�fiv�l P.6'.if$tqpffieri.J.. -,_l . , ... -� •• .·.-. W ... ·.·.. ··· · ... ·· . ·"'Yr'!-·,,,.,� i",1Q,,-Al,,..;,,..; , ....... . ��icfnS:,:!'.�K�i�t�_ss§.�]! physical dcvolof}fflent con5ider all the direct and indirect impacts of development or siting of facilities, such as noise, visual impacts, land use conflicts, traffic and congestion, environmental disruption and consequences for the social fabric of neighborhoods. At the same time, essential facilities for the region are accommodated. 9.The region g,� puts ·a_ stop to ureaR spraY,l through proi.-4:s:ign of an urban service area with a compact, contiguous development pattern. Densities are high enough to make delivering services efficient, yet balanced with open space and the natural environment. In the rural area, productive farm lands and open spaces are preserved and development limited to be consistent with a rural level of public services. 10.The two downtowns continue to play a major role in the region as viable commercial centers, with increased emphasis on large-scale, unique facilities and events. Major retail and office concentrations, such as those around regional shopping centers, are secondary focal points and hubs of activity. These areas are more densely deve loped than in 1992, offer a wider variety of goods and services, contain a mix of commercial and residential uses, and are highly accessible via the transportation system. Community and neighborhood centers continue to provide essential goods and services for nearby residents. 11.The freestanding growth centers are maintained as distinct and separate concentrations of development. 12.Aging areas have been rehabilitated so they can continue to be viable neighborhoods. Priority is given to maintaining the existing housing stock and making it useful for t�e future, instead of demolishing and replacing it. Supporting infrastructure has been updated or 41 renewed as needed. Maintenance and rehabilitation have focused equally on residential as well as commercial and industrial components so these areas can continue to provide both housing and jobs. 13.Regional and local governments make substantial use of a variety of urban design concepts in developing and redeveloping the urban area. Open spaces and natural features, as well as the "built" features like transportation facilities and public buildings are used to enhance the environment. A "sense of place" f�r§fg\9.,§rp8W,Jf��J. has been created within the urban fabric through the use of aesthetics and good design. Historic areas and structures are preserved when new development and redevelopment occurs. All urban design recognizes that the region is a "winter city" that functions and is attractive in all four seasons. A healthy "urban forest" is being maintained and expanded. Measures (comparison over time) Land area in natural resource-related public ownership at all levels Water quality reports of the Metropolitan Waste Control Commission Number of violations of pollution discharge permits River miles that do not meet standards of being "fishable and swimmable" Amount of wetland acres filled Quantity of water used Percentage of water supply systems meeting state drinking water standards Quantity of solid waste generated and quantity landfilled Quantity of hazardous wastes generated Toxic chemicals release or transferred (millions of pounds per year) Number of days per year that air quality stand ards are violated Tons of soil lost (per acre of cropland) 42 Number of "Super Fund" sites identified and the number cleaned up Number of petroleum release sites and the number cleaned up Amount of prime agricultural land lost to development Acres of land enrolled in Metropolitan Agricultural Preserves Program Acres of land added to the metropolitan urban service area, defined by the Metropolitan Council Number of jobs by location, downtowns and suburban activity concentrations Retail sales and sales tax data Annual issuance of building permits Demolition permits Trip generation/traffic data for highways and transit users Transit ridership and level of transit service Average annual energy use (average BTUs per person) Percentage of urban tree cover Arts, Culture and Recreational Opportunities The arts, culture and recreation opportunities available in the region are good indicators of our high quality of life. Though not necessities--like shelter, a job, security or transportation, for example--these opportunities are nonetheless important. Artistic and cultural experiences challenge us, stimulate us, excite us and enrich our lives. Our participatory and spectator sports, outdoor activities, cultural institutions and community events increase the pleasure of living in the region. They help attract businesses and skilled workers to our area. Some of the maier ·ehalleaees iA aef:i:ie·,ciae tl:ie&e eoals: •m:��pJ;;g�� We neea to R'laintain the high level of cultural and recreational opportunities available in tl=io regiofl tada�·, in ��e �f competing demands for public-..... � ... 43 • and private resources. 'ffle opp0rt_uoiuesf1ncl!,1,de11nepter/perf6fmin.fiirrs:;;muS€ums, ,.., .,_,.-•• � _-•• .-. ,\, ••• ,. ""' • "'I ,-..n •• . '·'•·-� �-""-•• -,.. .u. profess:ionaFsport-s; • resm-a 1s • aria-the rnce . . --·--.��--.· ... · "" . . . .. . . .. . . . . . ' . The"'r'egi&ri has ci:e(teo a�_ma,rye!b.� reg,�e:m1al parlt�fem;�o'ij{1:foes:iiqt\lfa%. Vle G\:IFF@ll'tlv ·do,,_,, ,.�,,),,�,r, , ,�••'"-'', .... �,. ·.�./'N,'X".�, .,._, � ,:T. T", ·, N, �-t W •�w-Oh• ,•>:,.,.�..-,¥#,'--�,...,,..,,,�;,,//4•,r<"..--.N ,•»;�.«•.-.-.. � ... not have the financial resources to coritinue"'fo implement it �Hfis the re�ional aark:s s1.·stem ............ --,v,."�,,--�--....:,... currently envisioned. The current estimate is that $300 million will be needed to complete the development and redevelopment of the system. •1p'e;euBnp's(desrres7fef,recreafa5n:-Cx�ntfmf'eto:"tlfalfg'e.;?sofc&miplru�resE��-A5� ,.}...-;4 �;y_ 'V• ,,� .... .-,�0:, •·-"·'·'•• .�,_._...._ ,V-'Nf•;...,0.,1 . ....,$;_:,,,..,..,,.,...�,w',,o,.,., -,,, .. �,-.,,..:"},(-_.,�.:,Ms,,�,� · ·,·;(.��- • ·MauBuaities de,,•eloo. the,t will be challenged to· keep up, with the chan!!in!! recreatioeal eeeds of their oooulation. and to establish local park systems early in their development. � . ......,..,.. w•-'·''l�jt_-W.'l"""'t::''·""':"!f .. ·�. ·t·h' ·->"-'w .. ,��· . .c w-·· .,.�,...,_,-,._t'-J:W"''.!/4"!1.•,. '£:":_ "-.=. ··��=·· C ,i.ue! f.Cg.JC).Ef}),�e"q�1,Jet:5 lfl' . �: WO!lu, ;!$". tieCt:ll_lningrmor ,Ot� · :. 'lQt.'0�8:tlQ� · �Je_ ,.:� once ms�;1$.i 'l --w ... -.;,,,,-... ,-.�-� ..... .,.� ........ M,:-.·» .. _ ... _ ·M, .4,; • ...-»,,,.�N;o;..-� ... ,e;;:,O,:-:, •• 'yM..-�· •• �........._ .• w.SLJ!n��---.).,..� .. tc:r.�;,..;.q..��'Wi •• � about access to activities and information will continue to grow as technology increases and if dispersed growth patterns continue. Goals 1.The region offers a rich range of cultural opportunities in music, art, dance and theater. Citizens have more opportunities to take part as active participants as well as to view, watch and listen. 2.Everyone has access to key information sources, including the information and entertainment media, such as newspapers, magazines, radio, television or any new media that may develop. Libraries are more accessible and use the latest technology. All private, public, governmental agency, school and university libraries are linked electronically. 44 3.A park system composed of local, regional and state parks provides for E�sr�§1L�1 ep.ti�fori; aha'Iunctle� tci'pr�e6.:i� .. tbe)'nat�ra[epvir6iimerit a ,,,,jde· rc1eee o'f-astivities. The.. -...:�···;,.v..,�·.· ...... · •• · .. · ..• w:. .... :,.:.;:, ,o... •'.-"h:,,(,_;';' ,-,u• .·.. ..,.,._ .... "� .. ·t'Y;IYf .. · .• ,,.-... ,-;,, .• ,'(, , -········· regional park system envisioned in 1992 is now completed. Local parks are located within walking distance of urban residents' homes. A trail system for walking, hiking and biking is in place throughout the region, within walking distance from urban residents' homes. Park facilities respond to users needs �st:�:��5�1§;�9: the•,r nr.l'Wia'@ reereatfoeal o:oeortGnitfos 'fo,r all residents irrespective of age, income or mobility status. The region has sufficient athletic fields, golf courses, ice rinks or other recreational facilities (indoor and outdoor) to meet the standards of the National Recreation ·and Park Association. Facilities provide for year-round activities. The number of available activities and facilities is increasing at least as fast as the population growth rate. Lakes and rivers provide many recreational opportunities. People can go boating and game fishing in lakes and rivers within the region. Habitat is maintained so that there is access to hunting opportunities within a day's trip from the region. 4.The region is home to major professional and collegiate sports, the Minnesota Zoo, State Fair, major amusement parks;)iiuseJlmF{fti�::r��t�EJ0%»:-:·-=<».:ic«:-�-.-."$�«·.w.·.«-:.:-.-... -.-... -x-:.:-:«-S:> •• -. 5.All major leisure and entertainment facilities in the urban area are accessible by public transit. Measures (comparison over time) 45 Measures (comparison over time) Attendance at aHS performances, ffeentsjirfd'.'a"fti'aij(fons .. �� ..... -.-nt�·,,__,,_ -�-.��·,YV.·t-.,.._.�...,.,- Number of amateur sports participants :N.lirn.ber of p:artic�paAES a.trending pr9.·�.s_sional sportirfa as.·ents Percent of homes with telephone service Percent of homes with access to cable television Miles of public recreational trails Library circulation data Acres of remaining regional parks to be acquired Number of public access facilities on lakes and rivers Park user counts Attainment of National Recreation and Park Association standards Appendices ••• 46 • • • oRf\f\ WHY A NEW CITY AID FORMULA .PROPOSAL? To preserve and increase the funding for aid to cities. -t c: --� )-cr.� The proposal should be a vehicle for advocating increased funding for aid to cities. It can also be a defense against those who want to cut LGA. A defensible alternative that cities agree on can help blunt these attacks. A new aid fonnula is an important component of an overall strategy to protect and increase the state funding for aid to cities. Te reaffirm the purpose of aid to cities. Many legislators and others have forgotten why the state helps fund city services. These reasons include reducing tax rate disparities, greater property tax equity, and property tax relief. A new formula proposal supported by all cities will provide opportunities for reestablishing these concepts. This is vital to the long term survival of state aid to cities . To establish principles for opposing attac.ks by others. The Governor, certain business groups and others are attacking LGA, city accountability, and city spending. Joining together in a proactive effort based on sound principles can be cities' most effective defense against these attacks. Protecting the. funding and obtaining reasonable increases for LGA and other city aid programs is the primary objective. All cities must work together toward this objective, and the new city aid fonnula is one tool in this overall effort. The fonnula proposal will be modified by the Legislature, and concerns with fonnula details can be addressed during the legisla tive process. However. concerns with formula details must not dive.1 't our attention away from fheprimary objecth'e. J KEY STRATEGIC ISSUES Funding for property tax relief and the continued existence of city aid programs like LGA will be determined through a political debate about two key issues: •·Should property taxes ( especially for homeowners) be allowed to increase significantly? e·1 Will the state continue its support for city services that are a foundation for community life in cities throughout Minnesota? · Our primary objective is to protect and obtain reasonable increases in funding for state aid to cities. The formula issues outlined below should be considered in the context of this primary objective and the larger political debate that will determine the success of our efforts. Formula cost anc1 funding leve) Recommendation: •.1 The fully funded formula cost should be $75 to $100 million higher than 1993 funding levels. Rationale: •A major purpose of the proposal should be to show that more state money is needed to address the gap between need and capacity. A formula with a cost close to current funding levels does not make this point, and could lead to significant funding cuts. •: The Taxpayers Association and other groups will be making proposals to cut city aid by $100 to $200 million. They will probably claim that the gap between need and capacity can be filled by a $100 million aid program. We need to counteract and offset this bad information. •A $100 million increase is consistent with 4 % to 5% annual growth in aid over a 5 year period. The funding increase would be phased in, just as increases for individual cities would be phased in. 2 Phase irL and/or grandfather pro,isions Recommendation: •Aid increases ( or decreases, if any) should be phased in over several years. The speed of the phase in may be determined by the amount of funding available each year. Grandfathers or other limitations may also be needed as political concessions. Rationale: •Revenue stability is important for cities and their taxpayers. The formula should not further undermine this. •: Large· increases or decreases in any one year would not be politically palatable. •Actual funding levels will probably require a phase in of full formula amounts. Relationship to BACA Recommendation: •·The proposal should replace city LGA, equalization aid and city disparity reduction aid. HACA should remain a separate program calculated separately, as in current law. However, HACA amounts must be taken into consideration in calculating the replacement for LGA. Rationale: •·HACA and LGA are different programs with different purposes and formulas. Combining them weakens our policy arguments. •Combining all city aids would create a $500 to $600 million city aid program. This is too large and makes too good a target for cutting $100 million or more. The individual programs are safer kept separate. 3 •LGA has many supporters and advocates. We should be able to defend it on its own merits. Mixing it up with HACA would only confuse the issue and could jeopardize HACA as well. •Even if city BACA were combined with LGA, county and school HACA would remain. This would increase rather than reduce the complexity and confusion. •1 Absorbing city HACA into a city aid program is probably not politically realistic. Choice-of a need factor Background considerations: •The need factor used in the formula should produce results that are desirable and that will help us promote the rationale for state aid to cities. •The need factor decision is directly related to the charges that cities are not accountable and that they spend too much. The choice of a need factor for the initial proposal should not imply that the League agrees with these charges. In fact, our work should be used to demonstrate the opposite. •1 The need factor used in the proposal should result in a formula that is consistent with and achieves the key objectives for city aid that have been defined in our principles. These key objectives are a reduction in property tax rate disparities and property tax relief. The next section of this presentation focuses on the need factor analysis that has been completed and provides formula examples to illustrate the potential impact of two different approaches to measuring city need. October 21, 1992 4 STATISTICAL ANALYSIS OF CITY NEED: VARIABLES TESTED BY THE LMC The following is a list of independent variables tested in the course of research conducted by the League of Minnesota Cities. The original data-base used in this research was compiled by state tax staff. Corrected and updated information has been substituted were applicable by LMC staff. l\1ixed and l\1iscellaneous Data 5-year population change (1983-1988) 10-year population change (1980-1990) 10-year population increase (1980-1990) 10-year population decrease (1980-1990) 30-year population change (1960-1990) Marginal tax price on the average value home Part 1 and part II crimes (Average for 1989, 1990 and 1991) Subsidized housing per capita Population density (per acre) Total state aid per capita (LGA, Eq Aid, HACA, DRA, tac aid-1991) Total state aid as a percent of revenue base General purpose state aid per capita (LGA, Eq Aid, taconite aid) General purpose state aid as a percent of revenue base Abstract of Assessment Data (Pay 1991) Percent of market value classified as non-residential Percent of market value classifies as commercial Percent of market value classified as industrial Percent of market value classified as commercial or industrial Percent of market value classified as public utility Percent of market value classified as apartment Percent of market value classified as homestead Percent of market value exempt from property taxation (1986) Exempt property market value per capita Average home market value Adjusted net tax capacity per capita 1990 Census Data 1990 Population 1990 Households 5 LOG Population LOG Households Population per household Percent of population living in institutional quarters Percent of population <= 18 years of age Percent of population >= 65 years of age Percent of households headed by a single parent Percent of housing non-occupied Percent of occupied housing currently rented Median age of housing Percent of homes less than 10 years of age Percent of homes 10 to 40 years of age Percent of homes over 40 years of age Percent of households classified as rural and farms Percent of households classified as urban Percent of households classified as mobile homes Percent of households with 5 or more rooms per structure Poverty rate Median household income Median family income Median per capita income 1980 and Other Census Data Percent of homes less than 10 years of age (in 1980) Percent of homes 10 to 40 years of age (in 1980) Percent of homes over 40 years of age (in 1980) Average age ofhousing--computed based on 1980 data Median individual income (1984) Median per capita income (1987) Median household income (1980) Total employment Total employment per capita Poverty rate (1980) County Cost of Living Index Metro Flag Suburb Flag October 15, 1992 6 SIGNIFICANT FACTORS IN STATISTICAL NEED CALCULATIONS FOR THE NON-METRO, METRO AND Sl\fALL CITY GROUPS FACTOR A.HOUSING AGE I)Percent pre-1940 Housing B.POPULATION FACTORS I)1990 Population 2)Population Decline (1980-1990) 3)Population Increase (1980-1990) 4)Percent of Population age 65 or over 5)1990 Population per household C.OTHER OVERBURDEN FACTORS 1)Crimes per 1,000 Pop (Average of 1988,89,90) 2)Percent single parent households 3)Percent of market value classified as comm/ind D.,vEALTH 1)Median Per Capita Income 2)Tax capacity per capita E.OTHER FACTORS 1)Average Home Market Value 2)Median Family Income 3)Percent of households that are rural and farm 4)Percent of households that are mobile homes October 15, 1992 7 METRO METRO . CITIES I NON-I I Sl\lALL I 0 0 0 -@ @ 0 0 0 1 @ 0 - I 0 I 0 -- 0 II 0 0 @ @ 0 0 @ --0 , @ ' J DESCRIPTION OF ll\1DEPEI\1DENT VARIABLES USED To DETERl\UNE STATISTICAL NEED DEFINITION � Non-1\Ietro Need Definition� Median Income Per Capita--the 1989 median income per capita in each city. This statistic is from the 1990 Federal Census. Percent Pre-1940 Housing--the percentage of housing in each city built before 1940 as reported in the 1990 Federal Census. Percent CIJ--the percent of the 1991 (for taxes payable in 1992) market value in each city that is classified under either commercial or industrial use. This information is based on the Abstract of · Assessment of Real and Personal Property prepared annually by the Minnesota State Department · of Revenue. Population Decline--the percent decline in population, if any, between the 1980 Federal Census and the 1990 Federal Census. Average Home t.-fnrket Value--the 1991 (for taxes payable 1992) estimated average home market value based upon the reported total market value of homesteads in each city divided by the reported number of homes in each city. This information is contained in the annual Abstract ofAssessment of Real and Personal Property. � l\'.letro Need Definition� ftfedian Familr lncome--the 1989 median family income in each city. This statistic is from the 1990 Federal Census. Percent Pre-1940 Housing--the percentage of housing in each city built before 1940 as reported in the 1990 Federal Census. Adjusted Net Tax Cnpncif)• Per Capita--the 1991 (for taxes payable in 1992) adjusted taxable tax capacity per capita of each city (total local tax capacity less powerline tax capacity less TIF captured tax capacity Jess fiscal disparities contribution tax capacity plus fiscal disparities distribution tax capacity). This figure is adjusted by the aggregate sales ratio for each city to account for variations in local assessment practices that would otherwise affect the comparability of the figure among cities. This statistic is derived from information contained in the Abstract of Tax Lists prepared annually by the Minnesota State Department of Revenue. The 1991 Metropolitan Council population estimates are used as the denominator in the statistic. Percentage of population age 65 or older--the 1990 Federal Census population estimate for persons age 65 or older in each city. Population incrense--the percent increase in population, if any, between the 1980 Federal Census and the 1990 Federal Census. 8 1990 Population--the 1990 Federal Census population estimate for each city. This count reflects appeals through May of 1992. Crime Rate--the three-year average reported total Part I and Part II crimes per 1,000 population for the years 1989 through 1991 based on the State of Minnesota, Department of Public Safety Bureau of Criminal Apprehension annual report. Where individual city data is not collected or otherwise available, the overall county crime rate is substituted. �Small Cities Need Definition� J.f edian Income Per Capita--the 1989 median income per capita in each city. This statistic is from the 1990 Federal Census. Percent Pre-.J940Housing--the percentage of housing in each city built before 1940 as reported in the 1990 Federal Census. Adiusted Net Tax CapacifJ1 Per CapUa--the 1991 (for taxes payable in 1992) adjusted taxable tax capacity per capita of each city (see the technical description under the metro variable descriptions). Percent of house'1olds classified as mobile '1omes--the percentage of households in each city classified in the 1990 Federal Census as a mobile homes. Percent Rural Farm House holds--the percentage of households classified in the 1990 Federal Census as rural farms. Population per Househa1d--the 1990 Census population of each city divided by the number of occupied households. Population Decline--the percent decline in population, if any, between the 1980 Federal Census and the 1990 Federal Census. Percent single-parent households--the percentage of households headed by a single parent as reported in the 1990 Federal Census. A,•erage Home 'Afnrket Value--the 1991 (for taxes payable 1992) estimated average home market value based upon the reported total market value of homesteads in each city divided by the reported number of homes in each city. This information is contained in the annual Abstract of Assessment of Real and Personal Property. 1990 Population (transformed)--the 1990 Federal Census population ad justed to account for a non-linear relationship with city revenue base. Population is a strong determinant of the spending of small cities and this mathematical transformation acknowledges that the per capita spending of cities increases at a declining rate ·with increases in population . 9 M " s · t · t· t ·· 1 · N d' ·o t· ·t· ,e;tro· ··--:';a� :1s,· tc:a., -\e·1 e1 : 1 ,e ·1.,nJ ·l'o·:n $600 {so II */$500 . ro .I �* -C. � $400 I �/ * Q) (l_ JI' IB $300 �*��£, �, ,,j,'. ��* '-1/ � 'V, ' ,. ' z ro --� $200 •--ro - $100 ../ r2 = .6501 $0 $0 $100 $200 $300 $400 $500 $600 Revenue Base Per Capita 0 - Non-Metro Sta�istiaal Need Definition $600 ro * ...... $500 ·-C. * ro (.) '; * * / -* I-* Q) * * a.. $400 -* -- "O * ...-I Q) ...-I Q) * z ro $300 * (.)·-·-Lro$200 * * ::-- $100 -r2 = .6372 $0 ._____...______._---'-----'-=,e-L-------L--'--------'---=--'-------::::-'-----'-___,:;_-----_J $0 $100 $200 $300 $400 $500 $600 $700 Revenue Base Per Capita Si'i'J:Uil1 I: C:iity,· Sta:fi:stt i ca,1 .N .. e,e:d De,fi1,nJfto,n ca ......,·- $800 ---'" c.$600 •-ca (.) I '-I Q) I I a.. -a $400 Q) * I Q) z *� -ca (.)·-......, $200en ·-......,ca......, Cf)I ;?f;;Jf(" �� :;' '/ .. .,.... = $0 * $0 $200 $400 * * * * �* * ** �* * * r2 = .-4,152 $600 Revenue Base Per Capita * * II! * $800 N� CONCLUSIONS In the fall of 1991, the League initiated an effort to develop a proposal for a new city aid formula. This strategy was a direct response to the then newly-created Advisory Commission of Intergovernmental Relations and their legislative charge to evaluate the current system and make suggestions for new and improved methods to distribute state revenues to cities. The League established a goal to provide a comprehensive proposal to the 1993 Legislature. Since last fall, the League has been developing statistical methods to measure relative city needs. The League began with the data-base of information collected by Minnesota House and Senate staff that was compiled for the "Ladd Study" of city needs. However, the Ladd work was based on the 1988 expenditures of cities. Armed with an understanding the shortcomings of State Auditor expenditure data, the League began by using city revenue base (certified levy plus state -aids) as the basis for evaluating city spending. The following major conclusions have resulted from this work: •Based on our research, there are identifiable, factors that help explain why cities spencl different amounts to provide services to lheir residents_ For example, our research indicates that city spending is higher in cities that have older housing stock. Statistical analysis of the Federal Census measure of housing age, Percent of Housing built before 1940, indicates that the costs of providing city services is higher in cities with older housing probably due to aged and aging infrastructure and other factors associated with older cities. •The, statistical research conducted by the Leaeue was far superio_r to the J'Ladd J 1 bod'y of work. Our research identified variables that explain as much as 65 percent of the variation in city spending compared to the "Ladd" research that explained less than IO percent. •Despite this marked improvement in the research condu-cted by the Learrue, a significant portion of the variation in city spendin!!_ remains_to be accurately explained through readjly available.. information. As a result, a statistically defined need measure may produce unexplainable results for a minority of cities. This need-definition methodology should be used with caution and careful attention to the results for individual cities. 13 l\1EETING SCHEDULE AND FORM OF REC01\11\1ENDATION TO MEMBERSHIP Meetings scheduled: October 21, 1992 -Preliminary presentation to Board of Directors. October 21, 1992 -Status report to North Metro Mayors Association. November 2, 1992 -Finance lobbyists and constituency groups. ·November 5, 1992 -Revenue Sources Committee. November 6, 1992 -Advisory Commission on Intergovernmental Relations. November 6, 1992 -Finance lobbyists and constituency groups. November 10, 1992 -Finance lobbyists and constituency groups. November 18, 1992 -Board review and recommendation to membership. November 19, 1992 -Policy adoption conference. Suggested_form of recommendation to membership: 1.Approval of "Principles for City Aid" 2.Authorization for staff to prepare and introduce legislation that contains the formula proposal outlined in November 19 packet. 3.Authorize Board of Directors (Legislative Committee? Summit Group? other?) to oversee League involvement in formula issue. ANOKA COUNTY REGIONAL RAILROAD AUTHORITY (ACRRA) Paul Mccarron, Chairman Dan Erhart Dennis D. Berg Nick Cenaiko Margaret Langfeld, Vice Chairman Bob Burman Jim A. Kordiak �-r f ;' . ·-1···-"'! � . : '� J October 16, 1992 ... ._. .... . .; t•. ! �-·-.# Mr. Stuart Anderson Manager, City of Columbia Heights 590 -40th Avenue N.E. Columbia Heights, MN 55421 Re: Northeast Corridor Light Rail Tr ansit Preliminary Engineering Dear Mr. Anderson: l ' r--,-'-' :_, i ' 7:--:,--.:, .. '· ... ""'" . ., ,..,. -..; Light Rail Tr ansit (LAT) planning in the Tw in Cities region is now focusing upon the Central Corridor between downtown Minneapolis and downtown Saint Paul. The Central Corridor Management Committee, of which Paul Mccarron and Dan Erhart are members, oversees the activities in the Central Corridor. Current activities in the corridor include completion of Preliminary Engineering between the University of Minnesota and downtown Saint Paul, and initiation of the Federal Alternatives Analysis process for the entire line segment between the downtowns. Completion of the federal process is required in order to ensure eligibility for federal funding on the project. Although the Central Corridor is the priority corridor for LRT in the region, it is important that we continue to advance the design of the Northeast Corridor project. Those corridors in which the major design issues have been resolved will have the greatest opportunity for implementation following the Central Corridor. Several LAT design issues were identified for the Northeast Corridor during the review of the Environmental Impact Statement and Preliminary Design reports. The Anoka County Regional Railroad Authority (ACRRA) has contracted with BRW, Inc. to develop design solutions for these issues over the next year. The attached schedule and scope of work outline our LRT work effort over the next twelve months. The overall schedule has been designed to resolve issues on a city-by-city basis in order to facilitate timely participation on the part of each city. We look forward to continuing a close working relationship with the cities and other jurisdictions as we complete this work effort. Q Telephone (612) 421-4760, extension 1171; Fax (612) 422-7511 Anoka County Courthouse, Administration Office, 325 E. Main Street, Anoka, MN 55303 October 16, 1992 Page 2 I will be contacting you over the next several months to set up meetings to support this work effort. Please contact either myself at 421-4760 or Doug Moore of BRW, Inc. at 370-0700 if you have questions regarding the approach or status of this work effort in the Northeast Corridor. Sincerely, �\��-Tim Yantos Anoka County Regional Railroad Authority TY:lp Attachment cc: Paul Mccarron, Chair, Anoka County Regional Railroad Authority Mary Richardson, Esq., Richardson, Richter & Associates oc,oern CORRIDOR/STATION REVIEW r uairiage Regulations �.10tion Review FRIDLEY Slnlions • 0,AOllNE • • MIS.�SSIPPI • 57TH • 5300" City Hall Analysis Noise Impacts BLAINE/SPRING LAKE PARK Stations • NORTHTOWN • 0580RNE" Landscaping Plan 7Qfh/83rd Analysis Noise Impacts COLUMBIA HEIGHTS Stations • 5300" • /19TH • 441H • 401H • 37TH Station/Parking Needs Noise SCHEDULED MEETINGS Cities ACRRA Core Group * NORTHEAST CORRIDOR LRT PRELIMINARY ENGINEERING SCHEDULE N0\lfMOER ___ . ._ ___ i -� ... * I DECfMl\[ll -- * I -� .... JI\NUARV FrnPUARV MAPCH --. g * * * * APl?ll MAY JUNE I J\JIV l AUGUST S[PTEM!\Ul :¢ .... :� .... * I* * * * * * OCT0!\rn =� * • Murtiple Cities [ND � � � © u � � STATE OF DEPARTMENT OF NATURAL RESOURCES PHONE NO. September 30, 1992 Kathyjean K. Young City of Columbia Heights 637 38th Ave NE Columbia Heights, MN 55421 Dear Ms. Young, FILE NO. REC·CP.ir,..,,; __ 1t..�'l�L· OCT 8 1992 Pi.ib:ic \i'Jorks Deot. Thank you for your application for grant assistance through the Minnesota Releaf Program. Your project was not selected for funding. Only 11 projects out of 39 applications received in the Metro Region will be funded at this time. Toe Steering Committee decided to iimit current funding to those projects which would be most strategic in saving energy. Specifically: higher priority was given to tree planting which would strategically shade the east and west sides of buildings, trees along north-south streets, and windbreaks; low priority was given to trees to shade parking lots, trees along east-west streets, and tree cover near buildings; and projects to plant trees without indication of any buildings nearby, to plant in a nursery, or to undertake non-strategic street tree trimming were not considered as eligible energy conservation plantings. In addition, the committee gave priority to projects which: included public education and involvement, specified appropriate numbers and species of trees, had reasonable total cost per tree, had a high proportion of cash in their local match, and had a well-defined maintenance plan. In accordance with the legislature's direction to focus on projects with the greatest energy conservation potential, the committee decided not to allocate all this region's monies at this time. Information about a second round of funding with approximately $185,000 available for the Metro Region will be distributed in October with grant applications due in January 1993. More explicit guidance will be given about information needed in the application. You are encouraged to submit a revised or new application which demonstrates how your project meets the priorities stated above. We would like to offer our assistance in making a new application to increase its likelihood of funding. If there are any questions regarding the Minnesota Releaf grant program or your community's application, please contact either Ken Holman (DNA Community Forestry Specialist at n2-7565) or Peggy Sand (Minnesota Releaftechnical adviser at n2-7562). The Steering Committee again thanks you for your interest in the Minnesota Releaf Program. Sincerely, �<:-l &�- Robert Tomlinson Metro Regional Steering Committee Chair AN EQUAL OPPORTUNITY EMPLOYER f��,��11:.,� ! ·1 E� I Minnesota Department of Transportation Metropolitan District Transportation Building St. Paul, Minnesota 55155 �OFT"Rfii.�Oakdale Office, 3485 Hadley Avenue North, Oakdale, Minnesota 55128 Golden Valley Office, 2055 North Lilac Drive, Golden Valley, Minnesota 55422 Golden Valley Office Reply to 593-8476Telephone No. = =_ September 24, 1992 Mr. Mark Winson Director of Public Works/City Engineer 590 -40th A venue NE Columbia Heights, Minnesota 5542 1 Dear Mr. Winson: SUBJECT: S.P. 0205-62 (T.H. 47) at 51st Avenue NE Signal Removal Public Informational Meeting In response to a request from Fridley, we have set UJ? an informationa1 meeting at the Murzyn � Community Center in Columbia Heights. It is scheduled for Wednesday November" 4;· 1992:!'at 7:00 PM) The facility will be set up with a head table with 16 chairs for Columbia Heights, Fridley and Mn/DOT and general seating for 125. We are in the process of sending a notice letter to the resident addresses supplied by your office; and plan on supplementing that with a notice in the Columbia Heights Focus. If you have any questions or concerns about the date or the facility, please call Robert Vasek at 779-1 124. �� G��ompson, P �--- Assistant Division Engineer -Traffic An Equal Opportunity Employer REC Z:-1\ 'Cf"!._, V '---- OCT 8 1992 �. b:;_., :I\/,.,..: c D n• ..., LI _. I : •.. V, ·.J, t-.: .. e ;., L. 12-,Oct-92 REVENUE 1890's SKATING PARK -HUSET PARK BUDGET Parks -Building & Improve., Relocate lights to McKenna Parks -BuilGling & Improve., Huset skating (1991 carryover) Parks -lmprev. other than Bids., Huset skatir:ig (1991 carryover} Total Revenue EXPENDITURES 2' High Wall Electrical Bridge Bridge Footings and installation • Railings* Sound System• Benches, Sod, Fire pit, Barbeques, Shrubs • Total Estimated Expenditures *Estimated $5,000.00 $10,220.00 $18,389.00 $33,609.00 $1,300.00 $13,765.00 $6,700.00 $3,100.00 $5,000.00 $1,100.00 $2,500.00 $33,465.00 TO CITY COUNCIL OCTOBER 26, 1992 *Signed Waiver Form Ac companied Appli cation APPROVED BY BUILDING OFFICIAL II I I II II FIRE INSPECTOR II II II II " II II 11 II 11 II 11 II II II II II II II II II II II II II II II II POLICE DEPT. 1992 LICENSE AGENDA CONTRACTORS �·:Metro Land Works*Midwest Fire Prot.*Prairie Plumbing ONE/TWO UNIT RENTALS Michael ir Judy Watson Mark Dostaler Britt Lundgren Christopher Hamrin Bradley Harlan Mahesh Na i than i Walter Caughey Frank Ferguson Bruce Zakseski James Junker Perry L. Wi 11 lams Mark Blosberg Mike Olzeske Bradley Harlan Bradley Harlan TAX I CAB DR IVERS David Lloyd Keller LICENSED AT 5432 Dupont Ave. N., B. Ctr. 324 Harding St.:1.E., Mpls. 3134 Colorado Ave., St.L.Pk. 4034 N.E. 5th St. 5103 N.E. 6th St. 1324 N.E. 42nd Ave. 4534 Fillmore St. 5037/39 Jackson St. 4109 Madi son St. 3961 Polk St. 4607 Taylor St. 4619 Taylor St. 3835 Ty 1 er St. 3956 Tyler St. 4521 Tyler St. 3834 Van Buren St. 5146/48 Washington St. 5200/02 Washington St. 1170 N.E. 52nd Ave., Fridley / I. FEES $ 40.00 40.00 40.00 30.00 15.00 15.00 15.00 30.00 15.00 15.00 30.00 30.00 30.00 30 .0 0 15.00 15.00 30.00 30.00 20.00 -.-: ... c::- �.: ' - �i ·,; ·--...() ,-:: .. ._ .t·_ -·LL ;·-') �j·-· .. • ::::: :..:-; ::::= c·: .. 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( It··.: c:: .. lECHNICAL REPRODUCTIONS, TFC::H:·-:I F·i. .. D� . .: c::u;::.:i:, TCJ><t,l...El:;;T, l l··-lC. --r i.Jt...L. F.-:Eh�::11,:c:; T�IN CITIES READER U '.�:; TI i:;:;;:: f�: EX\-·lt/ ... lf:n· W L 1·RAFFIC SUPPLY t•.J Lt.l c-;r-:.:r.°' I l··-lUU:;.: WARNING LITES OF MINN. l v . .1 /:·, ·r r: F: r::· h: () WILLIA�S SlEEL & HARDWAR l..1 . .!C)C))): ... t11--::1::: f;,:':·1!·-iI ·r t1F:·y-r:::::::1:;_:i._) IC:: ZE� �EDICAL SERVICE :/· r:: 1::. 1·•�,-:-·,:-.:·. t,::· (.:·,(:::·rt.J.? I t·-.:Ci C:(J;·;l:::·i:-:-1 :· .. ; 7I[L:,L. [h: I:·.:c CHi:::C �=:: 1·,lUi;IE-:;:::1::.: r-·:·,!'.-IC)t.J1·-.:·r :·:; :::: i:-y, �::: :::� :.:) :::: ,:;-�3 ,·.;- 38990 389?1 38992 38993 38994 38995 ?;C••7:)\.) L. -... •· .. .' , ·" '···':.::: :::� ,:p ,:_") ".? :.-:·,�:::-:_;.:•-:.�)::;:! :::i8'i'l'} ::; (y' () () () ::::: ,:;, () () 1. :::·; •'./ () () �? ::::, '? 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",? !)() II :L <? :1.:_3.-:"J ... 19 2,750.00 328.00 30.52 420.00 41.98 105.44 7:?. o;":: :t.H'.'.', .. :1.2 127.00 80.13 54,365.46 99.2/ 302.89 65.95 �::, r:::: () !I {· .. :, () �_:_:t 11 ::":". :::?)f;: ::+: ::-:-: __ J .. �.! .--. . __ : '!.:·· }·-· ... ·-· :, __ :: :__: ._ .. ; ; .... -;""' :-,� :� z .J ... .1 1-- ,-. �-- :.__;___: :-... ,-: :·. === Meeting of: Date of Meeting: Time of Meeting: Location of Meeting: Purpose of Meeting: NOTICE OF OFFICIAL MEETING •••••••••••••••••••••••••• Notice is hereby given that an official meeting is tc, be held in the City of Columbia Heights as follows: BOARD OF TRUSTEES -VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION MONDAY, OCTOBER 26, 1992 IMMEDIATELY FOLLOWING REGULAR CITY COUNCIL MEETING CITY HALL COUNCIL CHAMBERS 590 40TH A VENUE N .E. WORK SESSION: 1.Call to Order 2.Roll Call 3.New Business a.Retirement of Ron Chan 4.Adjournment Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 782-2800, Extension 209, to make arrangements. 1�ITY COUNCIL LETI'ER Meeting of: October 26. 199Z '!AGENDA SECTION: VOLUNTEER FIRE RELIEF ASSN ORIGINATING DEPARTMENT: CITY MANAGER APPR� NO:Fire ITEM: RONALD CHAN. RETIREMENT BY: Char lea Kewatt � 'V BY: Si r1 DATE· 10'"} INO: DATE: Oct 23, 1992 COLUMBIA HEIGHTS FIRE DEPARTMENT VOLUNTEER RELIEF ASSOCIATION BOARD OF TRUSTEES Ronald E. Chan will be retiring from the Volunteer Division of the Columbia Heights Fire Department on October 21, 1992. His letter of resignation is attached. The following are pertinent dates from his personnel records: Date of Birth --October 6, 1939 Employment Start Date --June 6, 1971 Leave of Absences --571 days Original Retirement Date --June 6, 1991 Addition of 571 days leave time: Retirement Date --October 21� 1992 Total time served as a Volunteer Firefighter --20 years (for pensions purposes) In accordance with the Volunteer Division Relief Association By-Laws (Article VI, Section I), Ron will be eligible to receive pension benefits one month from October 21, 1992. Scheduled pension payments will be $346.20 per month, per Resolution 92-29, passed September 14, 1992. RECOMMENDED MOTION: Moved and seconded to accept the resignation, due to retirement, of Ronald E. Chan from the Columbia Heights Fire Department effective October 21, 1992; and furthermore, to schedule pension payment(s) through the Volunteer Division Relief Association beginning one month from October 21. 1992. 92-128cc: Volunteer Relief Association SecretaryAttachment lcouNCIL ACTION: Sept. 7, 1992 Mr. Stuart Anderson City Manager City of Columbia Heights Re: Retirement Notice I respectfully submit this as being my retirement notice to the City of Columbia Heights effective Oct. 21, 1992. I elect to take my 20 year service pension as a monthly check. �ectfully,·1; rr-f\rL{ [I c � Ronald E. Chan Columbia Heights Fire Dept. cc: Chief C. Kewatt / Board of Examiners Board of Trustees AGENDA FOR THE REGULAR MEETIN6-0F THE CITY COUNCIL OF COLUMBIA HEIGHTS MONDAY, OCTOBER 26, 1992, 7:00 PM CITY COUNCIL CHAMBERS, CITY HALL, 590 40TH A VENUE NE Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hotus in advance. Please call the City Council Secretary at 782-2800, Extension 209; to-make arrangements. 1.Call to Order and Roll Call 2.Pledge of Allegiance I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all. 3.Consent Agenda (All items listed with asterisks [0*] are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion.) 0 *4. Minutes of Previous Meeting(s) 5.Open Mike/Proclamat-ions/Presentations (O_p�"l Mike is an opportunity for residents to address or raise any issue to the City Council. However, the City Counc.�1 ash thet the resident provide their name, address, and a statement of the item. The matter will be considered by the City :..�::.:,1c::l or referred to staff for a future response. In order to expedite business, residents will be allou�c.: five minutes Lu µrc�cu. :.hr;ir st-atement or issue.) a.Proclamation Declaring November as Epilepsy Month 6.Public Hearings/Ordinances & Resolutions a.Resolution 92-__ ; Potential Refunding of 1982 Single Family Mortgage Revenue Bonds b.Second Reading of Ordinance 1254; Being an Ordinance Amending Ordinance 853, Columbia Heights Zoning Code, Pertaining to Non-Conforming Lots***c.Resolution 92-__ ; Authorizing Agreement with MN/DOT for Technical Certification Tuition d.Resolution 92-__ ; Adopting the Memorandum of Understanding between the City of Columbia Heights and the Public Managers' Association ***e. Resolution 92-__ ; Being a Resolution Concerning a Constitutional Amendment to Create a New Property Taxpayers' Trust Fund in Minnesota f.Other Ordinances and Resolutions 7.Communications ***a. Appointment to Human Services Commission b.Other Communications 8.Old Business a.A ward of Bid -1993 Shared Ride Contract b.Other Old Business 9.New Business ***a. Religious Access Channel b.Award of Bid for Park Building Accessibility Improvement Project***c.Award of Bid for Municipal Service Center Storage Yard Lighting d.Authorization to Attend Fleet Maintenance Advanced Training Out-Of-Town ***e. Furnace and Air Conditioning Condenser Replacement, Liquor Store #3 f.Authorization to Establish Public Hearing for Consideration of Alley Lighting g.Audit Proposals for 1992-1994 Audit h.Other New Business 10.Reports a.Report of the City Manager b.Report of the City Attorney * ** 11. Licenses ***12. Payment of Bills Adjournment WORK SESSION TO FOLLOW REGULAR COUNCIL MEETING 92/164