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Home My WebLink About2011-08-16 CC PacketAGENDA CITY COUNCIL MEETING Council Chambers, 216 North Fourth Street August 16, 2011 SPECIAL MEETING 4:30 P.M. CALL TO ORDER ROLL CALL OTHER BUSINESS 1. Budget Workshop 4:30 MIS 5:00 Library 5:30 Legal REGULAR MEETING 7:00 P.M. 7:00 P.M. AGENDA CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE APPROVAL OF MINUTES 2. Possible approval of July 19, 2011 regular meeting minutes and July 25, 2011 recessed and regular meeting minutes PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS 3. Council Service Award — Officer Andrea Olson 4. Financial Statement - Tom Koop, Larsen Allen 5. Discussion of preferred site plan concept for the new armory and fire station — Col. Bruce Jensen OPEN FORUM The Open Forum is a portion of the Council meeting to address Council on subjects which are not a part of the meeting agenda. The Council may take action or reply at the time of the statement or may give direction to staff regarding investigation of the concerns expressed. Out of respect for others in attendance, please limit Your comments to 5 minutes or less. STAFF REPORTS 6. Police Chief 7. Fire Chief 8. City Clerk 9. Community Dev. Director 10. Public Wks Dir /City Engr. 11. Finance Dir. 12. City Attorney 13. City Administrator CONSENT AGENDA (Roll Call) 14. Resolution 2011 -109, directing payment of bills 15. Resolution 2011 -110, approving name change from Oliver & Louis, Inc. DBA: The Bikery to Vackra Nya Liv, Inc., DBA: The Bikery 16. Resolution 2011 -111, approving Minnesota Premises Permit for lawful gambling for American Legion Post 491, located at No -Neck Tony's, 231 Myrtle Street 17. Resolution 2011 -112, authorizing Certified Local Government Grant Application through Minnesota Historical Society PUBLIC HEARINGS - Out of respect for others in attendance, please limit your comments to 10 minutes or less. 18. This is the date and time for a public hearing to consider the issuance of a new On -Sale Tap Room Liquor License at 1900 Tower Drive, Lift Bridge Brewing Technologies, LLC, Daniel Schwartz applicant. Notice was published in the Stillwater Gazette on August 5, 2011. (Resolution — Roll Call) 19. This is the date and time for a public hearing to consider the transfer of the On -sale and Sunday liquor license from Loggers, Inc, DBA: Loggers, to TJ Stillwater LLC, DBA: No -Neck Tony's located at 231 Myrtle Street Stillwater, MN. Anthony Misenor and Jessica Junker, applicant. Notice was published in the Stillwater Gazette on August 4, 2011. (Resolution — Roll Call) 20. This is the date and time for a public hearing to consider the issuance of a new On -Sale Tap Room Liquor License at 402 Main Street S, Stillwater Brewing Company, LLC. Zachary Morgan and Justin Stanley, applicant. Notice was published in the Stillwater Gazette on August 5, 2011. (Resolution — Roll Call) 21. Case No. 2011 -04a. This is the date and time for a public to consider a request from City of Stillwater for future land map amendments related to the Comprehensive Plan rezoning and any variances related thereto. Notices were mailed to affected property owners and published in the Stillwater Gazette on July 15, 2011. (Tabled from July 25, 2011 meeting) (1 st Reading Ordinance — Roll Call) UNFINISHED BUSINESS NEW BUSINESS 22. Possible approval of resolution declaring costs and preparing assessment roll and resolution calling for assessment hearing for 2011 Street Improvements (Project 2011 -02) (2 Resolutions — Roll Call) 23. Possible approval of authorization to bid the Pedestrian Walkway project (Resolution — Roll Call) 24. Possible approval of new playground equipment for Triangle and Ramsey Grove Parks (Resolution — Roll Call) PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS (continued) COMMUNICATIONS /REQUESTS COUNCIL REQUEST ITEMS STAFF REPORTS (continued) ADJOURNMENT to Executive Session for City Administrator Review All items listed under the consent agenda are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion on these items unless a Council Member or citizen so requests, in which event, the items will be removed from the consent agenda and considered separately. RESOLUTION NO. 2011-109 DIRECTING THE PAYMENT OF BILLS BE IT RESOLVED, by the City Council of the City of Stillwater, Minnesota, that the bills set forth and itemized on Exhibit "A" totaling $922,600.39 are hereby approved for payment, and that checks be issued for the payment thereof. The complete list of bills (Exhibit "A ") is on file in the office of the City Clerk and may be inspected upon request. Adopted by the Council this 16th day of August, 2011. ATTEST: - 04��y Larry D. Hansen, City Clerk t LIST OF BILLS EXHIBIT "A" TO RESOLUTION #2011 -109 Abbott Paint & Carpet Stain -Amber Varnish 29.95 ABS Company 1st Half Collections TIF 1 1,927.35 Ace Hardware Supplies 298.72 Action Rental, Inc. Concrete 160.31 Advanced Firefighter Response System Pager Services 3.90 AMEM AMEM Conference 9/18 -21/11 130.00 Ammonia House, Inc. The Equipment Repair Supplies • 169.83 Anderson Marshall Reimbursement for overpayment Ramp 5.00 APA MN Administrators Conference 260.00 Aramark Uniform Services Uniforms, Mats, Towels 1,053.49 Aspen Mills Uniforms 209.84 AT &T Telephone 63.09 Blank Karen Reimbursement Parking Overpayment 3.00 Berg, Karen Reimburse Park Fee 100.00 Board of Water Commissioner July WAC Charges 14,949.00 Breezy Point Resort Lodging Gannaway AMEM conference Septemb 555.00 Brines Market Meals for Lumberjack Days 2011 451.78 Brock White Co. LLC Asphalt 383.26 C. Hassis Snow Removal & Yard Services Lawn Maintenance 1,049.93 Carquest Auto Parts Equipment Repair Supplies 467.84 Century Power Equipment Equipment Repair Supplies 6.36 City of Bayport Police Officer for Lumberjack Days 269.20 City of Oak Park Heights Police Officers for Lumberjack Days 2,083.58 Clareys Safety Equipment Vehicle Repair Charges 583.79 Cole Papers Black Liners, Soap 823.38 Comcast Parking Ramp Security 195.78 Cub Foods Food for Lumber Jack Days 78.21 Delta Dental Plan of Minnesota Dental Cobra 243.30 Diamond Products Paint 147.49 Dragonfly Gardens Rain Garden Plantings 1,931.23 East Central Diesel, Inc. Equipment Repair Supplies 197.67 Emergency Apparatus Maintenanc Ladder Testings 3,509.17 Emergency Medical Products, In Ice Packs 45.32 Flexible Pipe Tool Co. Sewer video cable repair 791.22 Foremost Promotions Fire Education Materials 774.00 Fred's Tire Company Equipment Repair Supplies 20.22 Frontier Ag & Turf Equipment Repair Supplies 57.66 Fury Dodge Chrysler Vehicle Repair Charges 575.84 Galls, an Aramark Company Uniforms 150.89 Gimmees Night to Unite 769.52 Guild Art Dasher Banner State Farm 98.33 Hardrives Inc. 2011 Street Improvement Project 281,513.39 Hardwood Creek Lumber Inc. Hubs, Lath 174.79 Harycki Kenneth Reimburse for Mileage to Washington DC & Cab 994.50 EXHIBIT "A" TO RESOLUTION #2011 -109 Hedberg Aggregates Hejny Rental Heritage Embroidery & Design Holtey, Julie I- State Truck Center Iceman Industries, Inc. Infratech, Inc. J.H. Larson Electric Jefferson Fire & Safety, Inc. John Deere Gov & National Sale John Deere Landscapes /Lesco Kath Companies Kirvida Fire, Inc. Lemoine Chyrisse Little Falls Machine Inc. Loffler Companies, Inc. Mac Queen Equipment Inc. Mainstream Development Partnership Menards Metropolitan Council Metropolitan Mechanical Contractors, Inc. MN Ice Arena Managers MN Pollution Control Agency Mondor LTEE /LTD NAPA Auto Parts Nardini Fire Equipment National Pen Company Natural Resource Group LLC Northern Tool Northland Graphics Northside Welding & Repair LLC Novak,Kelli Office Depot Olsen Chain & Cable, Inc. Olson, Andrea OnSite Sanitation Plant Health Associates Pogge, Michel R & R Specialties, Inc. Rick's 36 Automotive Service Riedell Shoes, Inc. Roettger Welding, Inc. S & T Office .Products, Inc. Semler, John D. Service on a Shoestring Karen Richtman dba Page 2 Mulch Nite to Unite Senior & Junior Team Embroidered Jacket Refund Parking Fee in Ramp Repair frame and rear axle on Jetter Dust control liquid Televise services Equipment Repair Supplies Bunker Gear Repair Flex -Wing Grooming Mower Equipment Repair Supplies Bulk Oil Repair 6108 Reimburse for DARE Grad Photos & Supplies Equipment Repair Supplies Maintenance Agrmnts, Telephone Labor Charge Equipment Repair Supplies Payment 1st half 2011 TIF 1 Supplies Wastewater Charge September 2011 Repair on City Hall Chiller 2011 Fall Conf STAR Class Stillwater Stage 3 Floodwall 34 Team Jackets Equipment Repair Supplies Class a Foam Pens for Fire Prevention Week Downtown Sewer Lining, Stage 3 Levy Wall GPM Boxed Northstar Pump Self Inking Stamps Repair and Inspection at Aiple Lift Station Refund Nick and Mitchell 4 x 4 Office Supplies Equipment Repair Supplies Reimburse for Night to Unite Banner Unit Rentals Professional Services for 6/1- 7/31/11 Reimburse for Hotel Rooms MN Preservation Conf Equipment Repair Supplies Vehicle Repair Charges Skates for Resale Equipment Repair Supplies Office Supplies Payment 1st Half 2011 TIF 1 Recycling Coordinator Service,RRR School Progr 59.64 227.90 492.22 10.00 1,048.00 1,218.38 2,100.00 122.91 261.47 15,794.03 77.77 1,209.61 2,852.35 90.83 1,065.14 415.19 417.57 22,783.81 547.06 147,941.04 3,833.51 175.00 500.00 1,082.32 18.52 986.46 308.90 11,199.71 74.80 51.14 200.00 200.00 396.56 57.09 210.86 1,915.34 812.50 252.75 275.00 444.96 143.99 4,232.25 40.08 5,466.80 7,300.28 EXHIBIT "A" TO RESOLUTION #2011 -109 Page 3 Sherwin Williams Paint 306.25 Shilts, Cindy Reimburse for Supplies 50.62 Special Operations Training Assoc. K9 training Wulfing and Peterson 270.00 Sprint PCS Cell Phone 90.48 St. Croix Boat & Packet Co. July Arena Billing 35,499.91 St. Croix Harley- Davidson Vehicle Repair Charges 4.10 St. Croix Recreation Co. New Recycling containers for Parks 6,989.63 Stender, Jeff Reimburse for Cell Phone Charger 26.77 Stillwater & Oak Park Heights CVB 2nd Qtr Lodging Tax 36,131.37 Stillwater Farm Store Supplies 53.42 Stillwater Fire Relief Assoc 2010 Disbursement 3,000.00 Stillwater Motor Company Squad Repair 4,580.59 Stillwater Rotary Club 3rd Qtr Membeship Dues 182.50 Stillwater Towing Towing 343.90 Streicher's Equipment 37.40 Sun Newspapers Publications 445.88 SW /WC Service Cooperatives Retiree Health Insurance, Cobra 55,569.75 T.A. Schifsky & Sons, Inc. Asphalt 1,393.38 The Alternator & Starter Store Repair Starter 64.13 Titan Machinery Equipment Repair Supplies 4,094.91 Toll Gas & Welding Supply Maintenance Agreement 10.20 TR Computer Sales, LLC Permit Works info from Springbrook 30.00 Trane U.S. Inc. Repair Chiller 1,792.00 Trans Union LLC Basic Service 5.00 Twin City Garage Door Co. Building Repair 918.84 Uniforms Unlimited, Inc Uniforms 200.95 United Refrigeration, Inc. Equipment Repair Supplies 11,527.68 United Rentals Northwest Inc. Supplies 165.66 US Bank Corporate Trust Svcs Paying Agent Fees 402.50 Verizon Wireless Police Internet 528.68 Vermeer Sales and Service Equipment Repair Supplies 1,072.37 Viking Industrial Center Safety Equipment 106.88 Wa County License Bureau Police Tabs for Unmarked Cars 11.00 Washington County Sheriff's Office 800 MHZ Radio Service 5,250.00 Waste Management Savage 1st Half Payment- Garbage Certification 33,267.24 WET Technology, Inc. Cooling Water Treatment 678.53 Wiegand ,Sheila Reimburse for Coffee, Fan, Extension Cord 63.99 Wingfoot Commercial Tire Tires for vactor 1,234.40 Winnick Supply Supplies 103.25 Wolter, Rachel Refund Partial Fee due to Change Resery 50.00 Yocum Oil Company Fuel 14,162.84 Zayo Enterprise Networks,LLC Telephone 572.81 I EXHIBIT "A" TO RESOLUTION #2011 -109 LIBRARY Ace Hardware Baker & Taylor BWI Brodart Budget Lighting CDW -G East Suburban Resources Gaylord Bros. Grainger Henry, Marvin Master Mechanical Midwest Tape Security Response Washington County Library Xcel Energy JULY MANUALS Coalition for St. Croix River Crossing Inc. Postmaster Stillwater Station Xcel Energy ADDENDUM CDW Government Loffler Magnuson Law Firm Qwest Verizon Xcel Page 4 Supplies 400.06 Library Materials 146.77 Library Materials 1,290.44 Library Materials 2,574.98 Light Bulbs 323.45 Equipment 561.18 Shredding 6.20 Processing Supplies 120.06 Building Repair Supplies 171.31 Reimburse for Mileage 16.10 Building Repair 635.33 AV Materials 555.72 Maintenance Agreement 155.67 Library Materials, Postage & Supplies 1,455.18 Electricity, Gas 4,526.57 Consulting Services 80,000.00 3rd Qtr. Utility Billing Postage 2,511.74 Refund Inv Fee and License Fee 500.00 Electricity, Gas 2,471.49 Dell Batteries 101.59 Maintenance Contract, Network Support 2395.91 Professional Service 9314.33 Telephone 753.27 Cell Phones 1698.11 Electricity, Gas 31,405.25 TOTAL 922,600.39 EXHIBIT "A" TO RESOLUTION #2011 -109 Adopted by the City Council this 16th Day of August, 2011 Page 5 Kv ater Administration Memorandum To: Mayor & City Council From: Diane Ward, City Clerk Date: 8/15/2011 Re: Transfer of On -sale and Sunday liquor license APPROVING TRANSFER OF OWNERSHIP OF THE ON -SALE AND SUNDAY LIQUOR LICENSES FROM LOGGERS, INC; DBA L2CQRS TO TJ STILLWATER LLC, DBA NO -NECK WHEREAS, an application has been received for a the try from Loggers, Inc; DBA Loggers to TJ Stillwater LLC, D Myrtle Street.; and WHEREAS, a public hearing on the transfer of WHEREAS, all required forms have been NOW THEREFORE, BE IF RESO hereby approves the transfer of own upon approval by Police, Fire, B County Department of Health and Adopted by Stillwater Diane F. Ward, y licenses at 231 2011; and il4f Stillwater, Minnesota, xnday liquor license conditioned Departments, Washington August, 2011. Ken Harycki, Mayor Q 6*.ale, TMF 11FTMF LE CE OF YIYFEFBTE AGENDA CITY COUNCIL MEETING Council Chambers, 216 North Fourth Street August 16, 2011 SPECIAL MEETING 4:30 P.M. CALL TO ORDER ROLL CALL OTHER BUSINESS 1. Budget Workshop 4:30 MIS 5:00 Library 5:30 Legal REGULAR MEETING 7:00 P.M. 7:00 P.M. AGENDA CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE APPROVAL OF MINUTES 2. Possible approval of July 19, 2011 regular meeting minutes and July 25, 2011 recessed and regular meeting minutes PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS 3. Council Service Award — Officer Andrea Olson 4. Financial Statement - Tom Koop, Larsen Allen 5. Discussion of preferred site plan concept for the new armory and fire station — Col. Bruce Jensen OPEN FORUM The Open Forum is a portion of the Council meeting to address Council on subjects which are not a part of the meeting agenda. The Council may take action or reply at the time of the statement or may give direction to staff regarding investigation of the concerns expressed. Out of respect for others in attendance, please limit your comments to 5 minutes or less. STAFF REPORTS 6. Police Chief 7. Fire Chief 8. City Clerk 9. Community Dev. Director 10. Public Wks Dir /City Engr. 11. Finance Dir. 12. City Attorney 13. City Administrator CONSENT AGENDA (Roll Call) 14. Resolution 2011 -109, directing payment of bills 15. Resolution 2011 -110, approving name change from Oliver & Louis, Inc. DBA: The Bikery to Vackra Nya Liv, Inc., DBA: The Bikery 16. Resolution 2011 -111, approving Minnesota Premises Permit for lawful gambling for American Legion Post 491, located at No -Neck Tony's, 231 Myrtle Street 17. Resolution 2011 -112, authorizing Certified Local Government Grant Application through Minnesota Historical Society PUBLIC HEARINGS - Out of respect for others in attendance, please limit your comments to 10 minutes or less. 18. This is the date and time for a public hearing to consider the issuance of a new On -Sale Tap Room Liquor License at 1900 Tower Drive, Lift Bridge Brewing Technologies, LLC, Daniel Schwartz applicant. Notice was published in the Stillwater Gazette on August 5, 2011. (Resolution — Roll Call) 19. This is the date and time for a public hearing to consider the transfer of the On -sale and Sunday liquor license from Loggers, Inc, DBA: Loggers, to TJ Stillwater LLC, DBA: No -Neck Tony's located at 231 Myrtle Street Stillwater, MN. Anthony Misenor and Jessica Junker, applicant. Notice was published in the Stillwater Gazette on August 4, 2011. (Resolution — Roll Call) 20. This is the date and time for a public hearing to consider the issuance of a new On -Sale Tap Room Liquor License at 402 Main Street S, Stillwater Brewing Company, LLC. Zachary Morgan and Justin Stanley, applicant. Notice was published in the Stillwater Gazette on August 5, 2011. (Resolution — Roll Call) 21. Case No. 2011 -04a. This is the date and time for a public to consider a request from City of Stillwater for future land map amendments related to the Comprehensive Plan rezoning and any variances related thereto. Notices were mailed to affected property owners and published in the Stillwater Gazette on July 15, 2011. (Tabled from July 25, 2011 meeting) (1 st Reading Ordinance — Roll Call) UNFINISHED BUSINESS NEW BUSINESS 22. Possible approval of resolution declaring costs and preparing assessment roll and resolution calling for assessment hearing for 2011 Street Improvements (Project 2011 -02) (2 Resolutions — Roll Call) 23. Possible approval of authorization to bid the Pedestrian Walkway project (Resolution — Roll Call) 24. Possible approval of new playground equipment for Triangle and Ramsey Grove Parks (Resolution — Roll Call) PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS (continued) COMMUNICATIONS /REQUESTS COUNCIL REQUEST ITEMS STAFF REPORTS (continued) ADJOURNMENT to Executive Session for City Administrator Review All items listed under the consent agenda are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion on these items unless a Council Member or citizen so requests, in which event, the items will be removed from the consent agenda and considered separately. 0 1 a er l.f VIIITMft110E 9f ■INIIE#01A CITY COUNCIL MEETING July 19, 2011 REGULAR MEETING 7:00 P.M. Mayor Harycki called the meeting to order at 7:00 p.m. Present: Councilmembers Cook, Menikheim, Roush, Polehna, and Mayor Harycki Absent: None Staff present: City Attorney Magnuson Community Development Director Turnblad Finance Director Harrison Fire Chief Glaser Police Chief Gannaway Public Works Director Sanders City Clerk Ward PLEDGE OF ALLEGIANCE Mayor Harycki led the audience in the Pledge Allegiance. APPROVAL OF MINUTES Possible approval of July 5, 2011 regular and recessed minutes Motion by Councilmember Roush, seconded by Councilmember Menikheim to approve the July 5, 2011 regular and recessed minutes. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Proclamation `Night to Unite' Mayor Harycki read a Proclamation designating August 2, 2011 as Night to Unite. OPEN FORUM No public comments. STAFF REPORTS Police Chief Gannaway reported that Lumberjack Days is this weekend and that the water level is getting higher in the north end of Lowell Park, therefore the Co -op parking lot was required for set up of the stage. He also reported that he and Public Works Director Sanders met with Mn/DOT and the Coast Guard to request a deviation from the lift bridge schedule on Sunday, July 24th. He wanted the Council and audience to know that the bridge will not be raised at 10:30 and 11:00 p.m. to alleviate congestion of traffic leaving town after the fireworks. Chief Gannaway continued by stating that on August 2nd, the Police Department City Council Meeting July 19, 2011 will be hosting their 3rd Annual `Night to Unite' event in Washington Square Park, and invited Council and residents to participate in the activities. Fire Chief Glaser advised that the department has received 85 calls to date and thanked all of those who participated in the Birchwood Apartment fire, including but not limited to fire departments from the surrounding communities, police, and Washington County dispatchers. He continued that Pastor Wilson from First Presbyterian opened up the church for the displaced residents. He stated that on Saturday, July 16th, there were a few lighting strikes in the Forest Hills area. He reported that the department has held a Lumberjack Days briefing, and that additional staff will be available, however the heat related incidents will be a concern. He stated that the National Guard will be assisting in traffic control for Lumberjack Days. Councilmember Polehna suggested recognizing First Presbyterian Church at the July 25th meeting, for their assistance in the Birchwood Apartment fire. City Clerk Ward requested formal approval of moving the City Council recessed and regular meeting from Wednesday, July 27, 2011, to Monday, July 25, 2011. Motion by Councilmember Roush, seconded by Councilmember Menikheim, to set the meeting for Monday, July 25, 2011. Community Development Director Turnblad informed the Council that the Armory Cheret will be presented at the 7:00 p.m. meeting on August 16, 2011. CONSENT AGENDA 1. Resolution 2011 -104, directing payment of bills 2. Possible approval of application for permit to sell liquor — 4th Annual Bean Bag Toss Tournament — Brian Nelson 3. Possible approval of temporary liquor license - Ascension Episcopal Church 4. Possible approval of the release of capital funds — Library 5. Possible approval of utility bill adjustments Motion by Councilmember Polehna, seconded by Mayor Harycki, to approve the Consent Agenda. Ayes: Councilmembers Polehna, Roush, Cook, Menikheim, and Mayor Harycki Nays: None PUBLIC HEARINGS Case No. 2011 -18. This is the date and time for a public hearing to consider the request from Dan Schwarz Lift Bridge Properties LLC for a zoning text amendment to allow limited bottling by special use permit in the BP-Q, Business Park Office District. Notices were mailed to affected property owners and published in the Stillwater Gazette on July 1, 2011. Community Development Director reviewed the Lift Bridge Brewing Company's history and request. He indicated that Lift Bridge Brewing Company approached the City recently asking to increase on -site production over the current limit of 2,000 barrels annually, and to Page 2 of 6 City Council Meeting July 19, 2011 add a manual /semi - automated bottling line to the facility. The applicant has indicated that they would prefer to continue to produce most of their beer off -site; however, due to production constraints with their current contract brewers, they desire the ability to produce their beer on -site when they are faced with capacity challenges. He informed the Coun 'L':at in order to proceed with on -site beer production, the applicant has requested a zoning text amendment to City Code Section 31 -325 entitled "Allowable uses in non — residential district" to allow limited bottling works by special use permit in the BP -O zoning district. V;. Turnblad described the purpose of the BP -O zoning district and stated that while a bottling works itself may not lend itself well to an office oriented zoning district, with some restrictions the use could be compatible with the surrounding office uses. He continued by stating that from the staffs perspective, the real impact from a bottling works operation comes from the noise it generates and the number of large vehicles traveling to and from the site, and that a way to address it would be to limit the type of bottling equipment that can used, which would physically limit the number of bottles that can be realistically produced on the site, thus limiting the amount of traffic and the noise, and with the equipment restriction the limited bottle works use itself would remain a small component of the overall use that would occur on the site. He informed the Council that the applicant has agreed to use only a manual or semi - automated bottling line without a conveyer system, which is very small, and only fills and caps 6 to 12 bottles at a time, and can be operated by one or two employees. Mr. Turnblad provided options to the City Council which included approval of the proposed zoning text amendment for bottling works in the BP -O zoning district; deny the proposed zoning text amendment for bottling works in the BP —O zoning district; or continue the public hearing until the July 25, 2011 City Council meeting. He advised that the staff recommendation is to approve the proposed zoning amendment with the addition of "limited" bottling changed in the proposed ordinance. He informed the Council that the Planning Commission had reviewed the request, had received no public comments, and recommended that the City Council approved the proposed zoning text amendment. Mayor Harycki asked about the brewery north of downtown, and would they have to follow the same process. Mr. Turnblad responded that is in the Commercial Business District, and it may already have a provision, however if it is not allowed in the Commercial Business District, it would have to follow this same process. Councilmember Roush asked if the language is changed to "limited," it is still under scrutiny under the Special Use Permit. Mr. Turnblad replied in the affirmative. Mr. Roush also thought that the word "limited" was pretty ambiguous. Mr. Turnblad responded that the definition of limited is that it is manually operated, therefore the restriction. Mayor Harycki stated that they are located across from his office, and he has never heard their operations. Councilmember Polehna raised the concern about forcing the brewery to go somewhere else if their business takes off, and restrict a business from growing. Mr. Turnblad explained that some uses are not the partners in an office use setting. He stated that the applicant is aware that if they need to expand and need more than a semi - automatic system, they will force themselves into another space in the Industrial portion of Stillwater. Mr. Polehna expressed that putting too many restrictions on a business will make a business go somewhere else. Page 3 of 6 City Council Meeting Mayor Harycki opened the public hearing. July 19, 2011 Dan Schwartz, Lift Bridge Brewery, resides at 1024 Legends Blvd., introduced himself and is available for questions. Mayor Harycki closed the public hearing. Motion by Councilmember Roush, seconded by Councilmember Polehna, to approve the first ,reading of Ordinance 1038, an Ordinance amending the Stillwater City Code Chapter 31, Entitled Zoning Ordinance, by adding "Limited Bottling Works" in the Business Park Office Zoning District as a Specially Permit Use. Ayes: Councilmembers Polehna, Roush, Cook, Menikhiem, and Mayor Harycki Nays: None Possible amendment to Building Code Chapter of City Code to authorize electrical inspections temporarily while the State is shut down. Community Development Director Turnblad reviewed the proposed ordinance that would allow the City to issue electrical permits during the state's shutdown. This would allow some projects in the City to move ahead. He stated that the vendors for Lumberjack Days need electrical inspections. He suggested that the Council adopt the first reading to provide assurance to the contractor that the City has adopted the first reading of the ordinance. On a question from Mayor Harycki about the State shutdown being resolved, City Attorney Magnuson reviewed the ordinance, and stated that the language could be changed to reflect if in the future the State shuts down again, the ordinance becomes effective. Councilmember Polehna asked if the City could take over the electrical inspections and Community Development Director responded that it would be possible; however for the amount the City would receive, he would not recommend it. City Attorney Magnuson suggested that the language of the ordinance be changed to "this ordinance shall be in effect during the time that the State of Minnesota is shut down by strike or lack of funding." Mayor Harycki opened the public hearing. No public comments. Mayor closed the public hearing. Motion by Councilmember Polehna, seconded by Councilmember Roush, to approve the first reading of Ordinance 1037, an Ordinance amending Chapter 33 by adding the Minnesota Electrical Act to Section 33 -1 of the City Code, as amended by City Attorney Magnuson. Ayes: Councilmembers Polehna, Roush, Cook, Menikhiem, and Mayor Harycki Nays: None Page 4 of 6 City Council Meeting July 19, 2011 UNFINISHED BUSINESS No unfinished business. NEW BUSINESS Possible approval of a Temporary Contract for electrical inspection services while the State is shut down Community Development Director Turnblad reviewed the contract for electrical inspections and that this contract would sunset when the State reopens. He stated that the contractor is the State inspector for this area. He indicated that in order for him to do this, an ordinance has to be in place. Mayor Harycki wondered if this contract would be something that should be done to include the future in the event of another shutdown. Mr. Turnblad responded that it would be used as a model, and the contract would have to be renegotiated at that time. Motion by Councilmember Menikhiem, seconded by Councilmember Polehna, to adopt Resolution 2011 -105, Approving Electrical Inspection Contract with Joe Wheaton. Ayes: Councilmembers Polehna, Roush, Cook, Menikhiem, and Mayor Harycki Nays: None Possible approval of no parking on portion the north side of Olive Street Councilmember Cook pointed out that she had brought up this safety issue and that the Traffic Review Committee had reviewed the request. Public Works Director Sanders stated that by law there is no parking 30 feet from the corner and that there would be adequate sight distance. Councilmember Roush asked if there is an issue or is it responding to a request. Councilmember Cook reviewed the problem at the corner of Greeley and Olive by Nelson's Ice Cream and was concerned for public safety. Councilmember Polehna felt the current intersection is more dangerous than the old pork chop that existed. Motion by Councilmember Cook, seconded by Councilmember Polehna to adopt Resolution 2011 -106, Restricting Parking on the North Side of West Olive Street from South Greeley to 145 Feet East. COUNCIL REQUEST ITEMS Councilmember Menikheim inquired who arranged for the jets to fly along the river Fourth of July, and Mayor Harycki responded that Mr. Eckberg had arranged it. Page 5 of 6 City Council Meeting Yellow Ribbon Update July 19, 2011 Councilmember Polehna provided an update on the buses that took the families to Fort McCoy before their loved ones were deployed. He also thanked Cory Buettner for 100 box lunches for the family, and Johnny Johnson for donating the water and juice. He also informed the Council that there is a 34th Red Bulls family picnic in September, and asked people to contact him to participate. He also had a request from Family Readiness for someone to let a dog out during the day for a veteran's family, and if anyone is interested to contact him. Mayor Harycki reviewed the Council work plan and directed staff to move items to August, remove the Lowell Park and Levee Wall Update, building permit report, etc. The City Administrator review is held at the Executive Session on August 16th. . Councilmember Cook asked about the statutory authority to assess administrative fines against combatants in fights within drinking establishments to help offset some of the costs in taking such matters to court that is on the work plan. Chief Gannaway responded and it will be moved to August. Councilmember Polehna asked about the commission picnic. City Clerk Ward stated that she would touch base with City Administrator Hansen. ADJOURNMENT Motion by Councilmember Polehna, seconded by Councilmember Roush, to adjourn at 7:58 p.m. Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk Resolution 2011 -104, directing payment of bills Resolution 2011 -105, Approving Electrical Inspection Contract with Joe Wheaton Resolution 2011 -106, Restricting Parking on the North Side of West Olive Street from South Greeley to 145 Feet East Page 6 of 6 'fillwater 111 1IITIOLICI Of MINN EIOTI CITY COUNCIL MINUTES July 25, 2011 REGULAR MEETING Vice Mayor Roush called the meeting to order at 4:30 p.m. Present: Councilmembers Cook, Menikheim, and Roush Absent: Councilmember Polehna, and Mayor Harycki Staff present: City Administrator Hansen City Attorney Magnuson Finance Director Harrison Fire Chief Glaser Public Works Director Sanders City Planner Pogge Admin Secretary Manos OTHER BUSINESS Youth Service Bureau 4:30 P.M. Mary Planton - Krell, Executive Director, gave an overview of how successful their diversion programs for Stillwater youth are keeping them from being repeat offenders. YSB is alternative to adult court, community service, letters of apology, public safety, refocus family counseling, On questions from Councilmember Cook, Ms. Planton -Krell responded that about 45% of their programming is related to working with referrals from law enforcement; and that approximately 85% of youth referred to their programs will not reoffend based upon prior experience. She also explained that a Fee for Service contract is a document they have negotiated and are successfully working with Maplewood and Woodbury communities, that is a way of making clear what services are provided, how much those services are going to cost, and being able to monitor and document what is being provided under that contract, rather than just a grant or a gift. She added that the core services are the same, but they are not a cookie cutter sort of approach; each community has different opportunities. Councilmember Menikheim mentioned that the City had not contributed funds last year, and City Administrator Hansen explained that the City did allocate some funds through the Police Department and filled the gap with forfeited property, but the contribution was not nearly as much as past years. Councilmember Menikheim asked where the money would come from and City Administrator Hansen responded that he will make note to try and add it to the budget. City Council Meeting July 25, 2011 Councilmember Menikheim suggested matching funds with the Library and Water Boards, and acknowledged that they have their own independent authorities. Vice Mayor Roush indicated that everyone agrees that it is a valuable service and that the Council will do what they can to find some money. Community Thread Valerie Jones, expressed their appreciation and reviewed the mission, vision and values of this program, specifically the senior center and senior needs. On a question from Vice Mayor Roush, Ms. Jones explained that they are a staff of three full time and eight part time employees and one of the State's eight volunteer center. She added that volunteers are not free, and their main job is to teach a community how to engage volunteers effectively. Councilmember Menikheim reiterated that this could be another opportunity to match funds with the other independent City entities as the Water Board and Library. Pedestrian Walkway update City Planner Pogge reviewed the plans for the new walkway, highlighting timeline, benches, fencing, brick columns with historical markers, landscaping, crosswalks, and flood proofing. Councilmember Cook expressed how panoramic the landscaping plans appeared and she did not want to lose that appeal. She suggested precautions for loitering and vandalism, such as the benches in Orleans Park where there is a bar in the middle, to avoid someone laying down. On a question from Councilmember Menikheim, Mr. Pogge informed the Council that at the July 12th Open House, nine citizens came and gave positive, and technical comments. Councilmember Cook wanted to know if this project was available to the public on the website, and Mr. Pogge responded in the affirmative. Councilmember Menikheim inquired about website and written comments from the public, and Mr. Pogge stated that he has not received any other comments. Councilmember Cook asked questions about seeing plans for the interior of the bathroom, and Mr. Pogge indicated that they would be available at the time the bids are received, noting glazed ceramic wall tiles, non -skid flooring, and that we should hear back from FEMA within 30 to 60 days. Vice Mayor Roush expressed concern for damage from skateboarders and Mr. Pogge indicated that surfaces will be ribbed, grooved, and low limestone features will be used to deter them. On another question from Vice Mayor Roush, Mr. Pogge answered that these current plans are what we are planning to go ahead with on the project, and we are pretty much locked in. He added that if the Council had any changes, now would be a good time to address them. Members of the Council expressed their approval of the project plans and thought they looked very appealing. Page 2 of 8 City Council Meeting July 25, 2011 Councilmember Cook inquired if the project was contingent on the land swap with the Water Street Inn, and Mr. Pogge explained that the process has begun with vacation of a portion of Water Street. Councilmember Cook also wondered about a public hearing for the land close to the river, and Mr. Pogge pointed out that they decided against the land lose to the river due to concern for flood preparation and high water levels. STAFF REPORTS Fire Chief Glaser reported that there mother nature was the headliner for Lumberjack Days, height of river, high heat and humidity Wednesday and Thursday, broke some on Friday, but Saturday had emergent storms during the morning race and again later in the evening, that effected the last band. He noted that crowds were smaller than usual; and that they had 29 calls over the four days, which was down from 44 from last year; 50% of the calls were medical, including people overcome by heat, people over imbibed; and they clocked about 300 hours of staff time, not including upfront planning. Vice Mayor Roush inquired about an email he received from a concerned resident about an ambulance waiting at the bridge due to heavy traffic, and Chief Glaser indicated that they decided to handle all downtown calls as red lights and sirens, because traffic, pedestrians and parking are usually such an issue. He expressed that having the National Guard there was a great assistance; they were able to respond quickly to a call of a vendor having a leaking propane tank. On a question from Councilmember Cook, City Administrator Hansen responded that a briefing on Lumberjack Days would be forthcoming. City Administrator Hansen reiterated that Lumberjack Days was calmer than usual, lots of other events going on in the Twin Cities area, the weather probably played a big role. Councilmember Menikheim suggested that perhaps this year was a reflection of all the effort and work that has been done over the years to get to this point, and offered a pat on the back to all the staff that have done this event for so many years, and considers it a sign of progress The meeting was recessed at 5:12 p.m. RECESSED MEETING Vice Mayor Roush called the recessed meeting to order at 7 p.m. Present: Councilmembers Cook, Menikheim, Polehna, and Vice Mayor Roush Staff present: City Administrator Hansen City Attorney Magnuson Finance Director Harrison Fire Chief Glaser Public Works Director Sanders Admin Secretary Manos 7:00 PM Page 3 of 8 City Council Meeting July 25, 2011 PLEDGE OF ALLEGIANCE Vice Mayor Roush led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Minutes from the July 19, 2011 regular meeting will be available for approval on August 16, 2011. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Council Service Award — First Presbyterian Church Councilmember Menikheim presented a Council Service Award to Rev. Zachery Wilson, First Presbyterian Church, for opening an emergency shelter for 57 residents, who were displaced as a result of the fire at the Birchwood Apartments, July 13, 2011, where 8 units were destroyed and others damaged. St. Croix Valley Red Cross set up a service center in the Church to meet the immediate needs for food, clothing and personal care. The Church also served as an overnight shelter for families awaiting alternate housing, or cleaning and inspection before being allowed to return. He noted that he arrived at the church at 5:45 a.m., and church members had been there since 4:30 a.m., taking care of people and holding hands. He also recognized Jeanine Kopel from the American Red Cross, and commended the Church and Red Cross together; they were an awesome team, given the tragedy of the day. Vice Mayor Roush spoke of the quality of residents, organizations and citizens in the community and thanked everyone for pulling together to help those in need, at the time they most needed it. Rev. Wilson thanked the council and Valley Outreach who worked hard to get emergency housing set up. Fire Chief Glaser spoke of the appreciation of the Fire Department and Police Department for the speed of their response to get assistance and somewhere to go to those who needed it during a devastating time. OPEN FORUM There were no public comments. CONSENT AGENDA 1. Resolution 2011 -107, directing payment of bills. Motion by Councilmember Cook, seconded by Councilmember Polehna to approve the consent agenda. Ayes: Councilmembers Cook, Menikheim, Polehna, and Vice Mayor Roush Nays: None Page 4 of 8 City Council Meeting PUBLIC HEARINGS July 25, 2011 Case No. 2011 -04a. This is the date and time for a public to consider a request from City of Stillwater for future land map amendments related to the Comprehensive Plan rezoning and any variances related thereto. Notices were mailed to affected property owners and published in the Stillwater Gazette on July 15 2011. Tabled until August 16, 2011 Council Meeting. Case No. 2011 -04b. This is the date and time for a public hearing to consider a request from City of Stillwater for special use permits for properties related to the Comprehensive Plan rezoning and any variances related thereto. Notices were mailed to affected property owners and published in the Stillwater Gazette on July 15 2011. Tabled until August 16, 2011 Council Meeting. UNFINISHED BUSINESS Presentation of ESI report on City Hall Air Handler Tony Baxter and Ryan Skoug from ESI introduced their company and reviewed their report regarding the noise and tones that the City Hall building chiller generates. Vice Mayor Roush asked if the complaints were 24/7, or just during night time, and night and day times were discussed. Councilmember Cook inquired if the noise issue was a mute point due to the current conditions it is evident that the chiller was not working, and IT Tech Rich Bornt responded that several days last week, the vendors had been fighting to keep the chiller operating. She also asked about the Fire Department having its own independent system and it does not make any noise at all, and Mr. Bornt stated that it does make noise, and confirmed that it is not contributing to the noise complaints. Vice Mayor Roush asked if the frequency noise was typical to this kind of equipment or if was defective, and Mr. Skoug answered that it could be both; that a compression of this type is known to have this frequency issue and if it was wearing out, it could get louder than what it was designed for. Mr. Skoug explained that he compared the noise frequency to the manufacturer specifications and this compressor was not operating outside what is expected. On a question from Councilmember Cook, Mr. Bornt confirmed that it would costs $25,000 to repair the chiller, compared to replacing the whole system. Councilmember Menikheim expressed that he leans toward getting a new system and asked about the quality of the current system, Mr. Skoug did not have that information, but did know that other systems are quieter. City Administrator Hansen explained that during his 10 years working here, we have sunk a ton of money into the system trying to fixed it, and band aid it, and recommends working with ESI, to come up with specifications that we can go out for bids with numerous companies, making sure it is a system that works reliably, and more quiet than what we have. Page 5 of 8 City Council Meeting July 25, 2011 Councilmember Menikheim added that to get it in here quickly, and City Administrator Hansen agreed, and that correctly was more important than quickness. Councilmember Polehna also agreed, but asked if we could change out the compressor to get us by for awhile; Mr. Bornt explained that basically the compressor is the system and perhaps we could get a larger temporary unit that will hook into our ventilation system, instead of a standalone to allow us time to make the most accurate choice for a new system. Vice Mayor Roush asked City Administrator Hansen if the Minnesota National Guard could help out with a loan of such equipment on a temporary basis, and he replied that we could certainly inquire. Councilmember Menikheim suggested going back to Trane to explain the problem and we would consider purchasing a new unit, asking them if they can do something with the compressor to help us get through this period of time, and Mr. Bornt stated that we could go back to the current vendor to see if they had any temporary solutions. Councilmember Cook expressed that we should be able to get professionals in here to give us an assessment on how to do it right, and City Administrator Hansen indicated that we had ESI right in front of us to help with that. He added that he and Mr. Bornt are not qualified to do that, and asked that he get approval to go continue to work with ESI to develop some specifications to bid it out, and look at temporary fixes to get the building cool. Councilmember Cook asked if that is typically how the process works, that we need specs, and Vice Mayor Roush noted that we want specs to make sure we're doing it right. Mr. Skoug and Mr. Baxter explained that they could help with the noise issues, but they are not that style of engineering firm to do mechanical design for a new system, but they work with those firms. Vice Mayor Roush reiterated that the specs decibel level that would not be an annoyance to the residents. Councilmember Polehna reiterated that it hooks into the building correctly, where it's going to go, the best location, but then you have to run the pipes, and size everything. Mr. Bomt added that we will retain ESI for their guidance and to help us decide on the correct type of system without noise issues. Councilmember Cook asked if Mr. Bomt would be the lead on this, and City Administrator Hansen indicated that he would speak with Mr. Bornt, referring to "other duties as assigned." Councilmember Polehna reflected that the engineering firm might suggest one unit for police, and Mr. Bornt described other options he has been informed of. Vice Mayor Roush asked where the money would come from and tentative timeline, and City Administrator Hansen noted that he could not have a timeline until he spoke with others, but do it as quickly as possible. He suggested that paying for it he could put money in the 2012 capital budget and do an internal borrowing in 2011 based on 2012, so we won't have to wait until January 1, and pay ourselves off. He stated that he had already put $100,000 in, but would increase it to $150,000, and feels we would have to a bond in 2012. Page 6 of 8 City Council Meeting July 25, 2011 Councilmember Menikheim asked if 14 years was old for a unit, and Mr. Baxter indicated that as they age, they take more and more money to keep them running. Motion by Councilmember Cook, seconded by Councilmember Menikheim directing staff to follow through with working with engineering firms to come up with a set of specifications and move forward. All in favor. Possible approval of 2 nd reading of Ordinance 1037 an Ordinance amending Chapter 33 by adding the Minnesota Electrical Act to Section 33 -1 of the City Code City Attorney Magnuson reiterated that this ordinance was needed due to the government shut -down, so that anytime in the future that the State shuts down; we have the authority to hire a contractor to conduct State electrical inspections. Vice Mayor Roush inquired if there were any changes since the last reading, and City Attorney Magnuson explained that paragraph 8 was modified to cover any time in the future. Vice Mayor asked the rest of the Council if should this ordinance pass and a roll call vote was taken. Ayes: Councilmembers Cook, Menikheim, Polehna, and Vice Mayor Roush Nays: None Possible approval of 2 nd reading of Ordinance 1038, an Ordinance amending the Stillwater City Code Chapter 31, Entitled Zoning Ordinance, by adding "Limited Bottling Works" In the Business Park Office Zoning District as a Specially Permit Use City Attorney Magnuson explained that this is a `housekeeping' measure that would allow bottling up to 250,000 bottles, but would not allow fully automated bottling that would be noisy or disruptive to neighborhood. Vice Mayor Roush confirmed that the limiting terminology between this scale, and large scale, is where it reads, "it is limited to manual or semi - automated bottling." Vice Mayor asked the rest of the Council if should this ordinance pass and a roll call vote was taken. Ayes: Councilmembers Cook, Menikheim, Polehna, and Vice Mayor Roush Nays: None NEW BUSINESS Possible approval of Code Red Joint Powers Agreement with Washington County City Administrator Hansen described the mass notification system with Washington County. It can be used for emergency or non - emergency information. Mr. Hansen recommended the City participate. Councilmember Menikheim asked how the County would obtain all of the residents' information, and City Administrator Hansen replied that the residents would have to sign up electronically through the website, the County fair, or phoning City Hall or mailing it in, etc. Page 7 of 8 City Council Meeting July 25, 2011 Motion by Councilmember Polehna, seconded by Vice Mayor Roush to adopt Resolution 2011- 108, approving the Joint Powers Agreement between the Washington County Sheriff's Office and the City of Stillwater. Ayes: Councilmembers Cook, Menikheim, Polehna, and Vice Mayor Roush Nays: None COUNCIL REQUEST ITEMS Councilmember Polehna wanted to mention that the State budget is now passed; the DNR has purchased the Zephyr Line, and heard it will be developed within a year or so. ADJOURNMENT Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to adjourn at 8:53 p.m. All in favor. James Roush, Vice Mayor ATTEST: Larry D. Hansen, Acting City Clerk Resolution 2011 -107, directing payment of bills Resolution 2011 -108, approving Joint Powers Agreement between the Washington County Sheriff's Office and the City of Stillwater Ordinance 1037, amending Chapter 33 by adding the Minnesota Electrical Act to Section 33 -1 of the City Code Ordinance 1038, amending the Stillwater City Code Chapter 31, Entitled Zoning Ordinance, by adding "Limited Bottling Works" In the Business Park Office Zoning District as a Specially Permit Use Page 8 of 8 STILLWATER CITY COUNCIL SERVICE AWARD On behalf of a grateful city and upon the recommendation of leading citizens, the Mayor and City Council hereby extend recognition and appreciation to moo 5" R,eA wo4k and a of `.lVigN to Wnite' Bald on au.Wmt 2, 201 at 2UaAM9ton Squaw Jam, and for outstanding service in support of the City of Stillwater's mission. Ken Harycki, Mayor Date of Recognition: August 16, 2011 CITY OF STILLWATER, MINNESOTA REPORT PREPARED BY SHARON HARRISON, FINANCE DIRECTOR THE FINANCE DEPARTMENT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2010 MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA CITY OF STILLWATER, MINNESOTA Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2010 TABLE OF CONTENTS INTRODUCTORY SECTION Page Letterof Transmittal ............................................................................................ ..............................3 GFOA Certificate of Achievement ....................................................................... ..............................6 OrganizationalChart ........................................................................................... ..............................7 Listof Principal Officers ...................................................................................... ..............................8 FINANCIAL SECTION IndependentAuditors' Report ............................................................................ .............................11 Management Discussion and Analysis ............................................................... .............................13 Basic Financial Statements Government -wide Financial Statements Statementof Net Assets ......................................................................... .............................25 Statementof Activities ............................................................................ .............................26 Fund Financial Statements Balance Sheet — Governmental Funds ................................................... .............................28 Reconciliation of the Governmental Funds Balance Sheet to the Statementof Net Assets ................................................................... .............................30 Statement of Revenues, Expenditures, and Changes in Fund Balance — Governmental Funds .............................................. .............................32 Reconciliation of Statement of Revenues, Expenditures, and Changes In Fund Balance of Governmental Funds to the Statement of Activities .........................34 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — General Fund ......................... .............................35 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — St. Croix Valley Recreation Center Fund .............36 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Library Fund ........................... .............................37 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Parks Fund ............................ .............................38 Statement of Net Assets — Proprietary Funds ......................................... .............................40 Statement of Revenues, Expenses, and Changes in Fund Net Assets — Proprietary Funds ............................................... .............................42 Statement of Cash Flows — Proprietary Funds ....................................... .............................44 Statement of Net Assets — Fiduciary Funds ............................................ .............................46 Notesto the Financial Statements ................................................................ .............................47 Required Supplementary Information: Schedule of Funding Progress -Other Post Employment Health Care Benefits and Stillwater Fire Relief Pension Plan ................................................... .............................75 and Individual Fund Financial Statements _Combining Combining Balance Sheet — Nonmajor Governmental Funds ....................... .............................80 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance — Nonmajor Governmental Funds ................. .............................82 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual — Special Events Fund ....................... .............................84 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual — Washington County Recycling Grant Fund ............ .............................85 Statement of Changes in Assets and Liabilities — Fiduciary Funds ............... .............................86 CITY OF STILLWATER, MINNESOTA Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2010 TABLE OF CONTENTS Paqe Other Supplementary Information Schedule of Special Revenue Fund — Library Donations Fund — Balance Sheet .......................88 Schedule of Special Revenue Fund — Library Donation Fund — Statement of Revenues, Expenditures, and Changes in Fund Balance ................... .............................90 Schedule of Debt Service Fund — Balance Sheet ......................................... .............................92 Schedule of Debt Service Fund — Statement of Revenues, Expenditures, and Changesin Fund Balance ...................................................................... .............................96 STATISTICAL SECTION Financial Trends Net Assets by Component, Last Eight Fiscal Years ..... ............................... ............................102 Changes in Net Assets, Last Eight Fiscal Years . ............................... .......... ............................104 Fund Balances, Governmental Funds, Last Ten Fiscal Years ..................... ............................108 Changes in Fund Balances, Governmental Funds, Last Ten Fiscal Years .. ............................110 Revenue Capacity Assessed and Estimated Actual Value of Property, Last Ten Fiscal Years .. ............................112 Property Tax Rates — Per $1,000 of Assessed Tax Capacity Value, Direct and Overlapping Government, Last Ten Fiscal Years ................. ............................114 Property Tax Levies and Collections, Last Ten Fiscal Years ....................... ............................116 Principal Taxpayers, Current Year and Nine Years Ago .............................. ............................118 Debt Capacity Ratio of Outstanding Debt by Type, Last Ten Fiscal Years ......................... ............................120 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Debt per Capita .......... ............................... ............................122 Direct and Overlapping Governmental Activities Debt .. ............................... ............................123 Computation of Legal Debt Margin, Last Ten Fiscal Years .......................... ............................124 Demographic and Economic Information Demographic and Economic Statistics, Last Ten Fiscal Years .................... ............................126 Principal Employers, Current Year and Nine Years Ago .............................. ............................127 Full -Time Equivalent Employees, City Government Employees by Function /Program, Last Ten Fiscal Years ............... ............................... ............................128 Operating Information Capital Asset Statistics by Function /Program, Last Ten Fiscal Years .......... ............................129 Operating Indicators by Function /Program, Last Ten Fiscal Years .............. ............................130 OTHER REPORTS SECTION Report on Minnesota Legal Compliance ............................ ............................... ............................135 INTRODUCTORY SECTION 1 aler THE BIRTHPLACE OF MINNESOTA June 27, 2011 Honorable Mayor Members of the City Council Citizens of the City of Stillwater, Minnesota Minnesota State law requires that cities over 2,500 population publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with U.S. generally accepted accounting principals (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants and submit them to the state auditor. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of Stillwater, Minnesota for the fiscal year ended December 31, 2010. This report consists of management's representations concerning the finances of the City of Stillwater. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Stillwater has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Stillwater's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Stillwater's financial statements have been audited by LarsonAllen LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2010, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the fiscal year ended December 31, 2010, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is designed to complement MD &A and should be read in conjunction with it. The City of Stillwater's MD&A can be found immediately following the report of the independent auditors on page 13. 3 CITY HALL: 216 NORTH FOURTH STREET • STILLWATER, MINNESOTA 55082 PHONE: 651 - 430 -8800 • WEBSITE: wwwxi.stillwater.mn.us Profile of the Government The City of Stillwater, incorporated in 1894, is a growing community located in central Washington County on the St. Croix River, approximately 20 miles east of the Minneapolis /St. Paul metropolitan area. Stillwater encompasses an area of approximately 4,891 acres and serves a population of 18,225. The City of Stillwater operates under the "Home Rule Charter' form of government under the provisions of State of Minnesota Law. The Mayor is president of the Council and together with the four - member City Council compromises the governing body of the City. The city council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring a city administrator. The city administrator has the responsibility of carrying out the policies and ordinances of the city council, for overseeing the day -to -day operation of the city. The mayor is elected at -large and the Council members are elected by Wards to serve four -year overlapping terms of office. The City provides a full range of municipal services. These services include: general government, public safety (police & fire), public works (streets & fleet), parks and recreation, public improvements, and providing and maintaining sanitary sewer, storm sewer, signs & lighting and parking infrastructure. Water services are provided by the Board of Water Commission, a legally separate entity. Financial information for the Board of Water Commission are reported in a separate column within the City of Stillwater's financial statements. Additional information on the Board of Water Commission can be found in Note LA in the notes to the financial statements. The annual budget is the foundation for the City of Stillwater's financial planning and control. All divisions are required to submit appropriations requests to the city administrator for review and consolidation into a proposed budget. The city administrator is responsible for submitting the proposed annual budget to the City Council in August of each year. The city council is required to hold a public hearing on the proposed budget and to adopt by resolution a final budget and certify it no later than December 30. The budget amounts cannot increase beyond the estimated receipts except to the extent that actual receipts exceed the estimate. Department directors may make transfers of appropriations within a department, but transfers of appropriations between departments require council approval. Budget -to- actual comparisons for the General Fund, Special Events, St. Croix Valley Recreation Center, Library, Parks, and Washington County Recycling which the only funds for which an annual budget has been adopted, are provided in this report on pages 35 through 38 and 84 through 85. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Stillwater operates. Local economy. Although the City's tax base is primarily residential, the economy is influenced by a large number of public employers. Stillwater is the Washington County Seat and the headquarters for Independent School District #834, while the adjacent cities of Bayport and Oak Park Heights are the homes of two major state correctional facilities. The Stillwater area is also influenced by the Andersen Window Corp, located in Bayport, which employs approximately 4,000 people. The City's 2030 Comprehensive Plan calls for continued growth of the City toward the west. The remaining undeveloped area available for annexation into the City encompasses approximately 690 acres. Of this area, 356 net acres are guided for residential development. At build -out this expansion area could yield about 1,400 housing units, 60 acres of office and non - retail commercial property along State Highway 36, and 5 acres of retail. Three residential developments are currently building out with the potential for another 300 home sites. About 100 of these are townhomes, the remainder a traditional single family homes. The estimated price points for these homes range from under $200,000 for some of the townhomes to over $500,000 for some of the single family homes. 4 The Comprehensive Plan also identifies specific downtown sites for redevelopment. Construction on four of these sites is complete. The four sites are: 1) Terra Springs; 2) The Lofts; 3) Stillwater Mills on Main; and 4) the new municipal parking ramp on 2 "d and Commercial Street. Together these four projects have developed 336 condominiums, 28,000 square feet of office /retail space, and 250 parking stalls. Sales of the condominium units are currently over 75 %, though there is still about 50% of the non - residential space available. Long -term financial planning. The City Council and staff recently completed a 5 -year Capital Improvement Plan (CIP) that identifies major projects and capital equipment purchases for years 2008 — 2012. Many of these projects have been pending for years awaiting various forms of approval and funding sources. Total projects identified amount to $65,559,323. All projects and capital purchases are rated 1 — 3 giving an indication of Council's priorities. Due to project timing issues and funding complexities it is acknowledged that the completion of all the projects identified in the 5 -year plan is unlikely. The CIP is computer assisted and easily upgradeable from year to year to assure that it remains dynamic and continually reflects Council's goals. Planning for an updated (2012 -2016) CIP will begin in September 2011. Major Initiatives Within the next year or two the City plans to initiate four municipal projects in the downtown area. They are: 1) a pedestrian walkway to connect Main Street with Lowell Park along the Commercial Street alignment; 2) improve all of the municipal parking lots along the St. Croix River that are currently surfaced only in gravel; 3) lining the sanitary sewer main downtown to reduce inflow and infiltration from groundwater; and 4) completion of flood control improvements. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awards the Certificate of Achievement for excellence in financial reporting to cities that meet certain criteria. A governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which conform to program requirements. The City of Stillwater received this award for the year ended December 31, 2009. This marks the twentieth consecutive year that the City has received this prestigious award. A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2010 report to GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We believe our current report continues to conform to the high standards of the Certificate program. The timely preparation of this report could not have been accomplished without the dedicated services of the Finance Department, auditors and other city staff. We also want to express our appreciation to the Mayor and City Council for their support for maintaining the highest standard of professionalism in the management of the financial operation of the City. Respectfully submitted, 94x�*_4v� Larry D. Hansen City Administrator Sharon Y. Harrison Finance Director 5 Certificate of Achievement for Excellence in Financial Reporting Presented to City of Stillwater Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2009 A Certificate of Achievement for Fxcellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. President p' Executive Director i CITY OF STILLWATER, MINNESOTA Organizational Chart December 31, 2010 CITIZENS OF STILLWATER CITY COUNCIL BOARDS AND COMMISSIONS CITY ATTORNEY CITY ADMINISTRATOR/ TREASURER ADMINISTRATION DEPT. FINANCE DEPT. COMMUNITY FIRE DEVELOPMENT DEPT. DEPT. BUILDING INSPECTIONS DEPT. ENGINEERING/ PUBLIC WORKS DEPT. POLICE DEPT. ENGINEERING I PUBLIC WORKS DEPT. DEPT. 7 CITY OF STILLWATER, MINNESOTA LIST OF PRINCIPAL OFFICERS December 31, 2010 ELECTED OFFICIALS Mayor Ken Harycki Term Expires: January 2011 Councilmembers Ward 1 Robert Gag Term Expires: January 2011 Ward 2 Micky Cook Term Expires: January 2013 Ward 3 Jim Roush Term Expires: January 2013 Ward 4 Mike Polehna Term Expires: January 2011 APPOINTED OFFICIALS Larry D. Hansen, City Administrator/Treasurer David T. Magnuson, City Attomey Sharon Harrison, Finance Director William Turnblad, Community Development Director Stuart Glaser, Fire Chief Shawn Sanders, Public Works Director /City Engineer John Ganaway, Police Chief Lynne Bertalmio, Library Director E-3 FINANCIAL SECTION LarsonAlletf LLP CPAs, Consultants & Advisors www.lsrsonallen.00m INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Stillwater, Minnesota We have audited the accompanying financial statements of the governmental activities, the business - type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Stillwater (the City), Minnesota, as of and for the year ended December 31, 2010, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Stillwater's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Stillwater, as of December 31, 2010, and the respective changes in financial position and cash flows, where applicable, thereof and the budgetary comparison for the general and major special revenue funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. The management's discussion and analysis and the schedules of funding progress as listed in the table of contents are not required parts of the basic financial statements but are supplementary information required by accounting principals generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. (11) � An independent member of Nexia International INTERNATIONAL Honorable Mayor and Members of the City Council City of Stillwater Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Stillwater's basic financial statements. The combining and individual fund financial statements and other supplementary information are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and other supplementary information have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections as listed in the table of contents are presented for purposes of additional analysis and are not required parts of the basic financial statements. This information was not subject to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. l- LarsonAllen LLP Minneapolis, Minnesota June 17, 2011 (12) City of Stillwater, Minnesota Management's Discussion and Analysis December 31, 2010 As management of the City of Stillwater, Minnesota, we offer readers of the City of Stillwater's financial statements this narrative overview and analysis of the financial activities of the City of Stillwater for the fiscal year ended December 31, 2010. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3 through 5 of this report. FINANCIAL HIGHLIGHTS: • The assets of the City of Stillwater exceeded its liabilities at the close of the most recent fiscal year by $98,010,346 (net assets). Of this amount $14,564,999 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. • The City's total net assets increased by $3,682,655. • As of the close of the current fiscal year, the City of Stillwater's governmental funds reported combined ending fund balance of $26,989,796 a decrease of $5,201,604 in comparison with the prior year. Approximately 20% of this total amount or $5,415,632 is available for spending at the City's discretion (unreserved, undesignated fund balance). • At the end of the current fiscal year, unreserved fund balance for the general fund was $4,098,208 or 53% of total general fund expenditures. • The City of Stillwater's total bonded debt decreased by $8,690,000 (23 percent) during the current fiscal period. The key factor to the decrease was the net effect of the annual payment of debt service and the defeasance of the General Obligation Bonds, Series 2000D and Series 2002A, refunded with crossover refunding bonds issued in 2009. OVERVIEW OF THE FINANCIAL STATEMENTS: This discussion and analysis are intended to serve as an introduction to the City of Stillwater's basic financial statements. The City of Stillwater's basic financial statements comprise three components: 1. Government -wide financial statements 2. Fund financial statements 3. Notes to the financial statements This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Stillwater's finances, in a manner similar to private- sector business. The statement of net assets presents information on all of the City of Stillwater's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Stillwater is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused compensated absences). Both of the government -wide financial statements distinguish functions of the City of Stillwater that are principally supported by taxes, and charges for services (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The 13 City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31. 2010 governmental activities of the City of Stillwater include general government, public safety, public works, culture and recreation, and economic development. The business -type activities of the City of Stillwater include a sanitary and storm sewer utility, signs and lighting, and parking program. The government -wide financial statement include not only the City of Stillwater itself (primary government), but also the Board of Water Commission (component unit), which is a separate legal entity for which the City of Stillwater is financially accountable. Financial information for the Board of Water Commission is reported separately from the financial information presented for the primary government itself. The government -wide financial statements can be found on pages 25 through 27 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Stillwater, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. All of the funds of the City of Stillwater can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental functions and governmental activities. The City of Stillwater maintains sixteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General fund, St. Croix Valley Recreation Center fund, Library fund, Parks fund, Debt Service fund, Capital Projects fund, and TIF Districts fund, all of which are considered to be major funds. Data from the other nine governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City of Stillwater adopts an annual appropriated budget for its general fund and certain special revenue funds. A budgetary comparison statement has been provided for the general fund and special revenue funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 28 through 34 of this report. Proprietary funds. The City of Stillwater maintains four proprietary fund types. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Stillwater uses enterprise funds to account for its sanitary and storm sewer utilities, signs and lighting, and parking program. The proprietary fund statements provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the sanitary and storm sewer funds, the signs and lighting fund and the parking fund, which are considered to be major funds of the City of Stillwater. The basic proprietary fund financial statements can be found on pages 40 through 45 of this report. 14 City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31. 2010 Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City of Stillwater's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund statements can be found on page 46. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 47 through 71 of this report. Other information. The combining Nonmajor governmental fund statements referred to earlier can be found on pages 80 through 83 of this report. Other informational schedules and statements can be found on pages 84 through 99. GOVERNMENT -WIDE FINANCIAL ANALYSIS: As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Stillwater, assets exceeded liabilities by $98,010,346 at the close of the most recent fiscal year. By far the largest portion of the City of Stillwater's net assets, $77,227,200, or 79 %, reflects its investment in capital assets (e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to acquire those assets that is still outstanding. The City of Stillwater uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Stillwater's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Approximately 6% or $6,218,147, of net assets represents net assets subject to constraints imposed by external creditors, primarily bond covenants. The remaining 15 %, or $14,564,999, of the City of Stillwater's net assets are unrestricted net assets and may be used to meet the government's ongoing obligations to citizens and creditors. CITY OF STILLWATER'S NET ASSETS Current and other assets Capital assets Total assets Non - current liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted unrestricted Total net assets Governmental activities 2010 2009 $ 32,065,843 $ 38,182,679 83,040,079 88,510,861 115,105,922 126,693,540 30,786,067 39,116,480 1,771,129 2,640,706 32,557,196 41,757,186 63,897,204 65,143,131 6,218,147 11,550,855 12,433,375 8,242,368 $ 82,548,726 $ 84,936,354 Business -type activites 2010 2009 $ 2,608,387 $ 2,556,344 13,329,996 7,155,514 15,938,383 9,711,858 217,025 191,460 259,738 129,D61 476,763 320,521 13,329,996 7,155, 514 2,131,624 2,235,823 $ 15,461,620 $ 9,391,337 Total 2010 2009 $ 34,674,230 $ 40,739,023 96,370,075 95,666,375 131, 044, 305 136,405, 398 31,003,092 39,307,940 2,030,867 2,769,767 33,033,959 42,077,707 77,227,200 72,298,645 6,218,147 11,550,855 14,564,999 10,478,191 $ 98,010,346 $ 94,327,691 r� At the end of the current fiscal year, the City of Stillwater is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business -type activities. Governmental activities. Governmental activities decreased the City of Stillwater's net assets by $2,387,628. The most significant change in governmental net assets is the result of the transfer of assets from the governmental activities to the business -type activities and the investing of revenues from capital grants, special assessments, and tax increments into the construction or major improvements of the City's capital assets and infrastructure. 15 City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31. 2010 Business -type activities. Business -type activities increased the City of Stillwater's net assets by 6,070,283. The sanitary sewer fund had a decrease of $194,625, however, the storm sewer fund, signs & lighting fund and the parking fund showed total increases of $6,294,908. The most significant factor of this increase was due to the transfer of assets (parking ramp) from governmental activities to the parking fund of $6,196,036. The following chart summarizes the changes in net assets for the current fiscal year: CITY OF STILLWATER'S CHANGES IN NET ASSETS Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Tax increment Lodging tax Franchise taxes Grants and contribution not restricted for a specific purpose Unrestricted investment earnings Gain on disposal of capital assets Total revenues Expenses: General government Public safety Public works Culture and recreation Economic development Interest on long -term debt Sanitary sewer Storm sewer Signs & lighting Parking Total expenses Change in net assets before transfers Transfers Change in net assets Net assets - beginning Net assets - ending Governmental activities Business -type activities Total 2010 2009 2010 2009 2010 2009 $ 3,471,304 $ 3,438,226 $ 3,139,601 $2,947,702 $ 6,610,905 $ 6,385,928 475,432 455,328 - - 475,432 455,328 2,676,036 1,173,898 - - 2,676,036 1,173,898 9,709,376 10,228,046 - - 9,709,376 10,228,046 3,075,912 3,102,744 - - 3,075,912 3,102,744 139,026 137,387 - - 139,026 137,387 425,617 426,754 - - 425,617 426,754 270,671 405,885 - - 270,671 405,885 297,177 491,432 36,924 54,590 334,101 546,022 8,572 76,311 - - 8,572 76,311 20,549,123 19,936,011 3,176,525 3,002,292 23,725,648 22,938,303 2,948,354 2,885,730 - - 2,948,354 2,885,730 4,405,907 4,430,687 - - 4,405,907 4,430,687 2,739,684 2,796,633 - - 2,739,684 2,796,633 4,405,463 4,317,878 - - 4,405,463 4,317,878 969,992 412,598 - - 969,992 412,598 1,117,505 1,381,994 - - 1,117,505 1,381,994 - - 2,387,829 2,183,972 2,387,829 2,183,972 - - 410,780 507,991 410,780 507,991 - - 397,014 370,858 397,014 370,858 - - 260,465 200,143 260,465 200,143 16,586,905 16,225,520 3,456,088 3,262,964 20,042,993 19,488,484 3,962,218 3,710,491 (279,563) (260,672) 3,682,655 3,449,819 (6,349,846) (90,628) 6,349,846 90,628 (2,387,628) 3,619,863 6,070,283 (170,044) 3,682,655 3,449,819 84,936,354 81,316,491 9,391,337 9,561,381 94,327,691 90,877,872 $ 82,548,726 $ 84,936,354 $15,461,620 $ 9,391,337 $ 98,010,346 $ 94,327,691 16 1 City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31. 2010 Below are specific graphs that provide comparisons of the government activities' direct program revenues with their expenditures. Any shortfalls in direct revenues are primarily supported by property tax levy or general state aid. Expenses and Program Revenues — Governmental Activities $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 ® Expenses ■ Revenues Revenues by Source — Governmental Activities Capital grants and contributions 13 %_ Taxes 48% Tax increment _15% Operating grants, and contributions 2% Charges for Unrestricted services investment 17% earnings 2% Franch ise fees 2% Other 1% 17 General Public safety Publicworks Culture and Economic Intereston government recreation development long-tem debt City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31. 2010 Below are specific graphs that provide comparisons of the business -type activities direct program revenues with their expenditures. Excess revenues are retained within each fund until such time that capital replacement is needed. Expenses and Program Revenues — Business -type Activities $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 e Expenses ■ Revenues Revenues by Source — Business -type Activities Unrestricted investment earnings 1% Charges for services 99% 18 Sanitary sewer Storm sewer Signs & lighting Parking City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31. 2010 FINANCIAL ANALYSIS OF THE G OVERNMENT'S FUNDS: As noted earlier, the City of Stillwater uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental Funds. The focus of the City of Stillwater's governmental funds is to provide information on near - term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Stillwater's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Stillwater's governmental funds reported combined ending fund balances of $26,989,796, a decrease of $5,201,604. Approximately 20% of this total amount, or $5,415,632, constitutes unreserved, undesignated fund balance, which is available for spending at the government's discretion. The remainder of fund balance is reserved or designated to indicate that it is not available for new spending because it has already been committed (1) to prepaid items ($66,745), (2) to pay debt service ($5,986,523),and (3) or to fund capital projects ($14,587,974). The general fund is the primary operating fund of the City of Stillwater. At the end of the current fiscal year, unreserved fund balance of the general fund was $4,098,208, while the total fund balance was $4,150,936. As a measure of the general fund's liquidity, it may be useful to compare unreserved fund balance. and total fund balance to total fund expenditures. Unreserved fund balance represents 52% of total general fund expenditures, while total fund balance represents 54% of that same amount. The fund balance of the City of Stillwater's general fund did decrease during the current fiscal year by $70,258. The primary reason for this decrease was due to the unbudgeted costs associated with building a temporary levee to prevent the flooding of the St Croix River and damaging the City's infrastructure. Overall, the general fund's revenues did decrease due mainly to the unallotment (as predicted early in the year of 2010) of revenues by the Governor, but budgeted operating expenditures were significantly below budgeted levels due to the decreased spending plan implemented early in 2010. The St. Croix Valley Recreation Center fund has a total fund balance of $1,008,014, all of which is unreserved but available for operations. The fund balance decreased by $170,658 due primarily to the installation of new turf in the fieldhouse. However, funding for a portion of the costs ($183,100) associated with the turf installation was pledged by a not - for - profit organization with payments coming to the City over the next 10 years. The Library fund has total fund balance of $57,747. The total fund balance consists of $7,788 reserved for prepaid items, $23,543 designated for compensated absences, and $26,416 unreserved and available for operations. The fund balance decreased by $8,291 due a planned use of fund balance to help compensate for the reduction of revenues experienced by the City as a whole. The Parks fund has a total fund balance of $292,768. The total fund balance consists of $6,229 reserved for prepaid items, $33,504 designated for compensated absences, and $253,035 unreserved and available for operations. The fund balance increased by $1,632. The Debt Service fund has a total fund balance of $5,986,523, all of which is reserved for the retirement of related debt. The net decrease of $5,498,393 is due primarily to the net effect of annual payments of debt service and the payment of bonds refunded with bonds issued in 2009 but paid in full in 2010. The Capital Projects fund has a total fund balance of $7,104,479 all of which is designated for current and future capital projects. The net decrease of $756,346 is primarily due to infrastructure construction. The TIF District fund has a total fund balance of $7,483,495, all of which is designated for TIF (Tax Increment Financing) related expenditures. The net increase in fund balance of $1,232,881 was primarily the result of decreased spending on TIF eligible projects. Proprietary funds. The City of Stillwater's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. WSJ City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31. 2010 The Sanitary Sewer fund has total net assets of $7,989,414, of which $1,609,926 are unrestricted. Net assets decreased by $194,625 primarily due to a rate increase from the Metropolitan Council Environmental Services for waste water treatment. A possible rate increase will be analyzed in 2011 to cover the shortfall within this fund. The Storm Sewer fund has total net assets of $462,574, of which $321,575 is unrestricted. Net assets increased by $83,027 due primarily to a planned decrease in spending. Resources available in this fund will be used for future storm sewer related projects. The Signs and Lighting fund has total net asset deficit of $90,863. The negative net asset balance will be recovered with future service charge receipts. The Parking fund has total net assets of $7,100,495, of which $290,986 is unrestricted. Net assets increased by $6,173,093 due primarily due to the transfer of assets from the governmental activities — primarily the parking ramp. Resources available in this fund will be used for future parking related capital projects. GENERAL FUND BUDGETARY HIGHLIGHTS: During the year there were no changes in appropriations between the original budget and the final budget. However, based on the economic challenges facing the state, the City implemented a reduced spending plan to account for the loss of State Aid provided by the State. CAPITAL ASSET AND DEBT ADMINISTRATION: Capital assets. The City of Stillwater's investment in capital assets for its governmental and business -type activities as of December 31, 2010, amounts to $96,370,075 (net of accumulated depreciation). This investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery and equipment, other capital assets, and infrastructure. The total increase in the City of Stillwater's investment in capital assets (net of accumulated depreciation) was 1%. CITY OF STILLWATER'S CAPITAL ASSETS (net of depreciation) Land Buildings and improvements Improvements other than buildings Machinery and equipment Vehicles Infrastructure Construction in process Total Governmental activities 2010 2009 $ 8,999,133 $ 8,111,426 27,822,788 28,445,628 3,054,925 3,166,595 2,522,569 2,761,618 1,480,930 1,776,226 35,003,231 36,013,736 4,156,503 8,235,632 $ 83,040,079 $ 88,510,861 Business -tvoe activities 2010 2009 $ 402,620 $ 122,920 6,061,196 37,198 656,656 658,789 349,304 376,229 232,951 264,188 5,610,257 5,686,191 17,012 9,999 $ 13,329,996 $ 7,155,514 2010 2009 $ 9,401,753 $ 8,234,346 33,883,984 28,482,826 3,711,581 3,825,384 2,871,873 3,137,847 1,713,881 2,040,414 40,613,488 41,699,927 4,173,515 8,245,631 $ 96,370,075 $ 95,666,375 Total Additional information regarding the City's capital assets can be found on page 57 and 58 of this report. Long -term debt. At the end of the current fiscal year, the City of Stillwater had total bonded debt outstanding of $28,605,000. Of this amount $16,605,000 comprises tax - supported debt, $2,750,000 is special assessment debt, $6,160,000 is tax increment debt and $3,090,000 is revenue - supported debt. All outstanding debt is a direct obligation of the City and backed with a pledge of the full faith, credit and taxing power of the City. 20 City of Stillwater, Minnesota Management's Discussion and Analysis (Continued) December 31. 2010 CITY OF STILLWATER'S OUTSTANDING DEBT General Obligation Bonds Governmental: activities General Obligation Bonds: 2010 2009 General Goverment $16,605,000 $ 22,755,000 Improvement 2,750,000 3,120,000 Revenue 3,090,000 4,835,000 Tax Increment 6,160,000 6,585,000 Total $ 28,605,000 $ 37,295,000 The City of Stillwater's total bonded debt decreased by $8,690,000 (23 percent) during the current fiscal year. The key factors applicable to the decrease was annual debt service payments and the defeasance (in 2010) of general obligation bonds that were refunded (crossover) in 2009. Additional information regarding the City's long- term debt can be found beginning on page 59 of this report. Minnesota State Statutes limit the amount of general obligation debt to 3% of the total estimated taxable market value. The current legal debt margin for the City of Stillwater is $45,528,600. Only $16,605,000 of the City's outstanding debt is subject to the statutory limit. The calculation for the City's legal debt margin can be found on page 124 through 125 of this report. The City of Stillwater was awarded a bond rating increase by Moody's on April 21, 2010 to an Aa2 for the City's general obligation debt. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES: The City's total estimated market value decreased by 3.8% in 2010 with values for 2010 expecting to decrease by 5.8 %. There are continued projected budget deficits at the State level for 2011 and it is anticipated that the State will reduce the City's 2011 promised aid payments. Due to the volatility of state receipts, the City did not include in its budget any funding from the State. Interest rates that the City has been able to obtain on its investments have continued to be low in 2010. Continued low investment rates are expected to continue for 2011. All of these factors were considered when preparing the City of Stillwater's 2011 fiscal year budget. REQUESTS FOR INFORMATION: This financial report is designed to provide a general overview of the City of Stillwater's finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City of Stillwater, 216 North 4 th Street, Stillwater, Minnesota, 55082. 21 Basic Financial Statements ( CITY OF STILLWATER, MINNESOTA STATEMENT OF NET ASSETS December 31, 2010 The notes to the financial statements are integral part of this statement. 25 Component Primary Government Unit Governmental Business -type Activities Activities Total Water ASSETS Cash and pooled investments $ 27,541,043 $ 1,918,346 $ 29,459,389 $ 1,786,735 Accrued interest receivable 76,094 6,778 82,872 23,850 Receivable (net of allowance for uncollectibles) 3,500,641 620,889 4,121,530 194,499 Internal balances 105,406 (105,406) - - Due from other governments 48,192 39,698 87,890 Due from primary government - - - 100,421 Prepaid items 66,745 128,082 194,827 28,773 Notes receivable 164,790 164,790 Inventories - - - 67,430 Deferred charges 562,932 - 562,932 8,042 Net OPEB asset - - - 25,382 I Capital assets, nondepreciable 13,155,636 419,632 13,575,268 943,141 Capital assets (net of accumulated depreciation) 69,884,443 12,910,364 82,794,807 10,324,787 Total assets 115,105,922 15,938,383 131,044,305 13,503,060 LIABILITIES Accounts payable 601,938 77,487 679,425 71,837 Contracts payable 109,339 131,442 240,781 Salaries payable 239,301 28,664 267,965 - Unearned revenue - - - 24,877 Due to other governments 137,204 1,850 139,054 - Due to component unit 80,126 20,295 100,421 - Deposits payable 211,061 - 211,061 - Accrued expenses - - - 16,497 Accrued interest payable 392,160 - 392,160 9,726 Noncurrent liabilities: Due within one year 3,918,795 42,874 3,961,669 132,775 Due in more than one year 26,867,272 174,151 27,041,423 404,613 Total liabilities 32,557,196 476,763 33,033,959 660,325 { NET ASSETS Invested in capital assets, net of related debt 63,897,204 13,329,996 77,227,200 10,837,928 Restricted for: Debt service 6,218,147 - 6,218,147 - Unrestricted 12,433,375 2,131,624 14,564,999 2,004,807 I Total net assets $ 82,548,726 $ 15,461,620 $ 98,010,346 $ 12,842,735 The notes to the financial statements are integral part of this statement. 25 CITY OF STILLWATER, MINNESOTA Functions /Programs Primary Government: Governmental Activities: General government Public safety Public works Culture and recreation Economic development Interest on long -tem debt Total governmental activities Business -type Activities: Sanitary sewer Storm sewer Signs & lighting Parking Total business -type activities Total primary government Component Unit: Water STATEMENT OF ACTIVITIES Year Ended December 31, 2010 General revenues: Property taxes Tax increment Lodging tax Franchise taxes Grants and contributions not restricted for a specific purpose Unrestricted investment earnings Gain on sale of capital assets Transfers Total general revenues Change in net assets Net assets, January 1 Net assets, December 31 The notes to the financial statements are integral part of this statement. r Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions $ 2,948,354 $ 282,194 $ 7,999 $ - 4,405,907 931,701 271,601 20,291 2,739,684 596,622 195,832 2,098,800 4,405,463 1,660,390 - 556,945 969,992 397 - - 1,117,505 - - - 16,586,905 3,471,304 475,432 2,676,036 2,290,662 1,912,336 - - 410,780 491,292 - - 397,014 405,802 - - 260,465 233,004 - - 3,358,921 3,042,434 - - $ 19,945,826 $ 6,513,738 $ 475,432 $ 2,676,036 $ 1,421,980 $ 1,235,180 $ - $ - General revenues: Property taxes Tax increment Lodging tax Franchise taxes Grants and contributions not restricted for a specific purpose Unrestricted investment earnings Gain on sale of capital assets Transfers Total general revenues Change in net assets Net assets, January 1 Net assets, December 31 The notes to the financial statements are integral part of this statement. r Net (Expense) Revenue and Changes in Net Assets Primary Government Component Governmental Business -type Unit Activities Activities Total Water $ (2,658,161) $ - $ (2,658,161) $ - (3,182,314) - (3,182,314) - 151,570 - 151,570 - (2,188,128) - (2,188,128) - (969,595) - (969,595) - (1,117,505)_ - (1,117,505) - (9,964,133) - (9,964,133) - 425,617 - (378,326) (378,326) - - 80,512 80,512 - - 8,788 8,788 - (27,461) (27,461) (316,487) (316,487) (9,964,133) (316,487) (10,280,620) (186,800) 9,709,376 - 9,709,376 - 3,075,912 - 3,075,912 - 139,026 - 139,026 - 425,617 - 425,617 - 270,671 - 270,671 - 297,177 36,924 334,101 21,956 8,572 - 8,572 - (6,349,846) 6,349,846 - - 7,576,505 6,386,770 13,963,275 21,956 (2,387,628) 6,070,283 3,682,655 (164,844) 84,936,354 9,391,337 94,327,691 13,007,579 $ 82,548,726 $ 15,461,620 $ 98,010,346 $ 12,842,735 27 CITY OF STILLWATER, MINNESOTA BALANCE SHEET GOVERNMENTALFUNDS December 31, 2010 The notes to the financial statements are an integral part of this statement. 28 St Croix Valley Recreation General Center Library Parks ASSETS Cash and pooled investments $ 4,580,720 $ 1,142,591 $ 100,663 $ 316,445 Accrued interest receivable 8,924 4,271 378 1,197 Accounts receivable 143,822 - - 630 Taxes receivable: Delinquent 334,673 - - - Due from county 128,777 - - - Special assessments receivable: Delinquent 20,559 - - - Deferred 91,475 - - - Due from county 4,242 - - - Due from other governments 18,515 - - 487 Due from component unit - - - - Interfund receivable - - - - Prepaid items 52,728 - 7,788 6,229 Note receivable - 164,790 - - Total Assets 5,384,435 1,311,652 108,829 324,988 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 401,157 135,629 24,022 12,307 Contracts payable 7,452 - - - Salaries payable 193,989 - 27,019 18,293 Due to other governments 71,403 3,219 41 20 Due to component unit - - - - Deposits payable 196,250 - - 1,600 Deferred revenue 363,248 164,790 - - Total Liabilities 1,233,499 303,638 51,082 32,220 Fund Balance: Reserved for: Prepaid items 52,728 - 7,788 6,229 Debt service - - - - Unreserved reported in: Designated: General Fund 875,875 - - - Special Revenue Funds - - 23,543 33,504 Capital Project Funds - - - - Undesignated: General Fund 3,222,333 - - - Special Revenue Funds - 1,008,014 26,416 253,035 Total Fund Balance 4,150,936 1,008,014 57,747 292,768 Total Liabilities and Fund Balance $ 5,384,435 $ 1,311,652 $ 108,829 $ 324,988 The notes to the financial statements are an integral part of this statement. 28 66,745 5,986,523 - - - 5,986,523 - 875,875 - - - 57,047 7,104,479 7,483,495 - 14,587,974 - - - 3,222,333 - - - 905,834 2,193,299 5,986,523 7,104,479 7,483,495 905,834 26,989,796 $ 6,610,307 $ 9,159,717 $ 7,684,679 $ 930,404 $ 31,515,011 29 Other Total Debt Capital TIF Governmental Governmental Service Projects Districts Funds Funds $ 5,880,794 $ 7,126,489 $ 7,497,755 $ 895,586 $ 27,541,043 12,181 24,318 22,107 2,718 76,094 42,077 30,414 - 20,000 236,943 166,587 893 138,951 - 641,104 64,189 259 25,866 - 219,091 12,523 29,664 - - 62,746 402,597 1,812,816 - - 2,306,888 169 29,458 - - 33,869 29,190 - - - 48,192 - - - 12,100 12,100 - 105,406 - - 105,406 - - - - 66,745 - - - - 164,790 6,610,307 9,159,717 7,684,679 930,404 31,515,011 - 1,665 2,641 24,517 601,938 - 101,887 - - 109,339 - - - - 239,301 - 2,876 59,592 53 137,204 - 92,226 - - 92,226 - 13,211 - - 211,061 623,784 1,843,373 138,951 - 3,134,146 623,784 2,055,238 201,184 24,570 4,525,215 66,745 5,986,523 - - - 5,986,523 - 875,875 - - - 57,047 7,104,479 7,483,495 - 14,587,974 - - - 3,222,333 - - - 905,834 2,193,299 5,986,523 7,104,479 7,483,495 905,834 26,989,796 $ 6,610,307 $ 9,159,717 $ 7,684,679 $ 930,404 $ 31,515,011 29 CITY OF STILLWATER, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS December 31, 2010 Total fund balance - total governmental funds (page 29 ) Amounts reported for governmental activities in the statement of net assets (page 25) are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds. Governmental capital assets Accumulated depreciation Other long -term assets that are not available to pay for current - period expenditures and, therefore, are deferred in the governmental funds. Delinquent property taxes and special assessments Deferred special assessments Accounts receivable Notes receivable Long -term liabilities are not due and payable in the current period, and, therefore, are not reported in the governmental funds. Long -term debt payable Compensated absences Net OPEB obligation Accrued interest payable Unamortized premium Unamortized refunding and issuance costs Net assets of governmental activities (page 25) The notes to the financial statements are an integral part of this statement. 112,988,571 (29,948,492) 620,391 2,306,888 42,077 164,790 (28,914,577) (932,932) (663,748) (392,160) (274,810) 562,932 $ 26,989,796 83,040,079 3,134,146 (30,615,295) $ 82,548,726 THIS PAGE IS INTENTIONALLY LEFT BLANK CITY OF STILLWATER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2010 St Croix Valley Recreation General Center REVENUES Property taxes Tax increment Lodging tax Franchise taxes Licenses and permits Special assessments Intergovernmental Charges for services Fines and forfeits Interest Donations Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Public works Culture and recreation Economic development Capital Outlay Debt Service: Principal Interest Professional services Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Sale of property Payment to refunded bond escrow agent Total other financing sources (uses) Net change in fund balances Fund balance- January 1 Fund balance- December 31 Library Parks $ 6,452,910 $ 425,617 - - - 405,567 - - 986 11,395 - - - 656,924 - - - 1,012,961 1,486,504 57,110 18,185 120,772 - - - 45,803 10,472 971 3,081 - - 6,653 - 98,097 18,648 16,189 1,104 9,230,046 1,515,624 80,923 23,356 2,484,619 - - 3,806,026 - - 1,330,907 - - - - 1,228,943 1,102,000 674,047 224,675 418,770 - 44,246 7,846,227 1,647,713 1 718,293 1,383,819 (132,089) (1,021,077) (694,937) 185,704 235,670 1,012,786 668,169 (1,678,752) (274,239) - - 38,971 - - 28,400 (1,454,077) (38,569) 1,012,786 696,569 (70,258) (170,658) (8,291) 1,632 4,221,194 1,178,672 66,038 291,136 $ 4,150,936 $ 1,008,014 $ 57,747 $ 292,768 The notes to the financial statements are an integral part of this statement. 32 Debt Service Capital Projects Other Total TIF Governmental Governmental Districts Funds Funds $ 3,234,962 $ 1,212 $ - $ - $ 9,689,084 - - 3,033,542 - 3,033,542 - - - 139,026 139,026 - - - - 425,617 - - - - 406,553 101,298 1,031,805 - - 1,144,498 283 593,773 24,548 62,482 1,338,010 - 1,235,866 - 35,207 3,845,833 - - - 19,778 140,550 61,072 80,395 54,849 7,715 264,358 5,000 56,500 - 34,825 102,978 41,117 14,400 397 142,776 332,728 3,443,732 3,013,951 3,113,336 441,809 20,862,777 - 750 - 136,720 2,622,089 - 42,942 3,848,968 - 48,591 - 22,371 1,401,869 - - - 91,544 3,096,534 - 46,660 949,514 - 996,174 t - 3,041,922 177,899 94,047 4,001,559 3,489,247 - - - 3,489,247 1,251,356 - - - 1,251,356 18,803 153 - - 18,956 4,759,406 3,138,076 1,127,413 387,624 20,726,752 (1,315,674) (124,125) 1,985,923 54,185 136,025 1,222,281 - - 18,300 3,342,910 - (632,221) (753,042) (4,656) (3,342,910) - - - - 67,371 (5,405,000) - - - (5,405,000) (4,182,719) (632,221) (753,042) 13,644 (5,337,629) (5,498,393) (756,346) 1,232,881 67,829 (5,201,604) 11,484,916 7,860,825 6,250,614 838,005 32,191,400 $ 5,986,523 $ 7,104,479 $ 7,483,495 $ 905,834 $ 26,989,796 33 CITY OF STILLWATER, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended December 31, 2010 Net change in fund balances - total governmental funds (page 33) $ (5,201,604) Amounts reported for governmental activities in the statement of activities (page 27) are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlays 3,997,972 Depreciation expense (3,559,951) The net effect of various miscellaneous transactions involving capital assets, including sales, trade -ins, transfers and donations, is to decrease net assets. Proceeds on the sale of assets (67,371) Gain on the disposal of assets 8,572 Contributions 499,842 Transfer from governmental activities to business -type activities (6,349,846) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. Deferred property taxes 37,195 Deferred special assessments (670,417) Other 206,867 Long -term debt (e.g., bonds, leases) proceeds provide current financial resources to governmental funds, while issuing debt increases long -term liabilities in the statement of net assets. Repayment of principal of long -term debt is an expenditure in the governmental funds, while the repayment reduces long -term liabilities in the statement of net assets. Interest is recognized as an expenditure in the governmental funds when it is due, however, in the statement of activities interest expense is recognized as it accrues regardless of when it is due. In addition, governmental funds report the effect of issuance costs, premiums and similar items when the debt is initially issued, whereas these amounts are deferred and amortized in the statement of activities. The net effect of these differences in the treatment of long -term debt and related items is as follows: Principal retirement on long -term debt 8,894,247 Change in accrued interest expense 194,554 Amortization of premium, refunding, issuance costs (88,664) Some expenses reported in the statement of activities do not require the use of current financial resources and , therefore, are not reported as expenditures in governmental funds. 438,021 (5,908,803) (426,355) 9,000,137 Compensated absences increase (83,069) Net OPEB Obligation (205,955) (289,024) Change in net assets of governmental activities (page 27) $ (2,387,628) The notes to the Financial statements are integral part of this statement. 34 CITY OF STILLWATER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 Budgeted Amounts REVENUES Property taxes Franchise taxes Licenses and permits Special assessments Intergovernmental Charges for services Fines and forfeits Interest Miscellaneous Total revenues EXPENDITURES General government Mayor and council Elections MIS support services Finance Administration Legal/City attorney Plant/City hall Community development Unallocated Public safety Police Fire Inspections Civil defense Public works Engineering Streets Total expenditures Excess (deficiency) of revenues over expenditures unginat ana Final Actual Amounts $ 6,566,717 430,000 368,520 7,000 881,986 986,820 130,900 95,000 77,500 9,544,443 83,621 41,814 276,241 386,964 517,408 267,026 208,704 262,070 614,690 2,744,022 1,169,590 252,674 2,913 $ 6,452,910 425,617 405,567 11,395 656,924 1,012,961 120,772 45,803 98,097 9,230,046 75,696 31,922 236,612 354,700 490,331 271,990 148,416 250,028 707,871 2,602,024 1,061,205 235,754 4,193 Variance with Final Budget Positive (Negative) $ (113,807) (4,383) 37,047 4,395 (225, 062) 26,141 (10,128) (49,197) 20,597 (314,397) 7,925 9,892 39,629 32,264 27,077 (4,964) 60,288 12,042 (93,181) 141,998 108,385 16,920 (1,280) 342,543 327,953 14,590 1,011,032 1,047,532 (36,500) 8,181,312 7,846,227 335,085 Total other financing sources (uses) (1,363,131) (1,454,077) 1,363,131 1,383,819 20,688 OTHER FINANCING SOURCES (USES) Transfers in 398,617 185,704 (212,913) Transfers (out) (1,761,748) (1,678,752) 82,996 Sale of property - 38,971 38,971 Total other financing sources (uses) (1,363,131) (1,454,077) (90,946) Net change in fund balance $ - (70,258) $ (70,258) Fund balance- January 1 4,221,194 Fund balance- December 31 $ 4,150,936 The notes to the financial statements are an integral part of this statement. 35 CITY OF STILLWATER, MINNESOTA ST CROIX VALLEY RECREATION CENTER FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2009 REVENUES Charges for services Interest Miscellaneous Total revenues EXPENDITURES Current: Culture and recreation Recreation center ice arena Recreation center fieldhouse Lily Lake ice arena Total expenditures Excess (deficiency) of revenues over expenditures Budgeted 835,939 Variance with Amounts 613,210 Final Budget Original and 198,564 Positive Final Actual Amounts (Negative) $ 1,504,300 $ 1,486,504 $ (17,796) 45,000 10,472 (34,528) - 18,648 18,648 1,549,300 1,515,624 (33,676) 858,198 835,939 22,259 357,314 613,210 (255,896) 191,949 198,564 (6,615) 1,407,461 1,647,713 (240,252) 141,839 (132,089) (273,928) OTHER FINANCING SOURCES (USES) Transfers in 132,400 235,670 103,270 Transfers (out) (274,239) (274,239) - Total other financing sources (uses) (141,839) (38,569) 103,270 Net change in fund balance $ - (170,658) $ (170,658) Fund balance- January 1 1,178,672 Fund balance- December 31 $ 1,008,014 The notes to the financial statements are an integral part of this statement. 36 CITY OF STILLWATER, MINNESOTA LIBRARY FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 Budgeted Amounts Original and Final REVENUES Charges for services Interest Donations Miscellaneous Total revenues EXPENDITURES Current: Culture and recreation Operations Plant Total expenditures Excess (deficiency) of revenues over expenditures Actual Amounts Variance with Final Budget Positive (Negative) $ 43,300 $ 57,110 $ 13,810 1,000 971 (29) 1,000 6,653 5,653 38,400 16,189 (22,211) 83,700 80,923 (2,777) 956,682 884,042 (72,640) 236,094 217,958 (18,136) 1,192,776 1,102,000 (90,776) (1,109,076) (1,021,077) 87,999 OTHER FINANCING SOURCES Transfers in Net change in fund balance Fund balance- January 1 Fund balance- December 31 66,038 $ 57,747 The notes to the financial statements are an integral part of this statement. 1,109,076 1,012,786 (96,290) $ - (8,291) $ (8,291) 37 CITY OF STILLWATER, MINNESOTA PARKS FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 REVENUES Licenses and permits Charges for services Interest Miscellaneous Total revenues EXPENDITURES Current: Culture and recreation Excess (deficiency) of revenues over expenditures Variance with Final Budget Budgeted Amounts Positive Original Final Actual Amounts (Negative) $ 1,000 $ 1,000 $ 986 $ (14) 12,000 12,000 18,185 6,185 10,000 10,000 3,081 (6,919) - - 1,104 1,104 23,000 23,000 23,356 356 1,027,567 981,117 718,293 262,824 (1,004,567) (958,117) (694,937) 263,180 OTHER FINANCING SOURCES (USES) Transfers in 999,567 953,117 668,169 (284,948) Sale of property 5,000 5,000 28,400 23,400 Total other financing sources (uses) 1,004,567 958,117 696,569 (261,548) Net change in fund balance Fund balance- January 1 Fund balance- December 31 The notes to the financial statements are an integral part of this statement. 1,632 $ 1,632 291,136 $ 292,768 38 THIS PAGE IS INTENTIONALLY LEFT BLANK CITY OF STILLWATER, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2010 ASSETS Current assets: Cash and cash equivalents Accrued interest receivable Accounts receivable Due from other governments Prepaid items Total current assets Noncurrent assets: Capital Assets: Land Building and other improvements Improvements other than building Machinery and equipment Vehicles Infrastructure Construction in progress Less accumulated depreciation Total capital assets (net of accumulated depreciation) Total assets LIABILITIES Current liabilities: Accounts payable Contracts payable Salaries payable Interfund payable Due to other governments Due to component unit Compensated absences payable Total current liabilities Noncurrent liabilities: Compensated absences Net OPEB obligation Total noncurent liabilities Total liabilities NET ASSETS Net assets, invested in capital assets Unrestricted Total net assets Business -type Activities Sanitary Storm Sewer Sewer $ 1,148, 543 4,018 498,567 10,278 123,241 1,784,647 $ 340,863 998 63,963 868 2,782 409,474 480,464 242,721 476,615 9,781,081 11,892 (4,613,285) 179,568 12,780 (51,349) 6,379,488 140,999 8,164,135 550,473 47,902 11,118 25 20,295 9,593 88,933 548 8,784 1,247 28,072 38,651 56,567 29,221 85,788 174,721 6,379,488 1,609,926 $ 7,989,414 The notes to the financial statements are an integral part of this statement. 29,390 19,858 49,248 87.899 140,999 321,575 $ 462,574 40 - Enterprise Funds Signs and Lighting Parking Totals $ - $ 428,940 $ 1,918,346 - 1,762 6,778 53,329 5,030 620,889 28,269 283 39,698 1,428 631 128,082 83,026 436,646 2,713,793 - 402,620 402,620 - 6,064,364 6,064,364 - 442,502 922,966 - 209,775 632,064 - 31,851 521,246 - - 9,781,081 - 5,120 17,012 - (346,723) (5,011,357) - 6,809,509 13, 329, 996 83,026 7,246,155 16,043,789 20,496 8,541 77,487 22,615 108,827 131,442 4,199 4,563 28,664 105,406 - 105,406 87 491 1,850 - - 20,295 3,172 2,037 42,874 155,975 124,459 408,018 10,078 14,705 110,740 7,836 6,496 63,411 17,914 21,201 174,151 173,889 145,660 582,169 - 6,809,509 13,329,996 (90,863) 290,986 2,131,624 $ (90,863) $ 7,100,495 $ 15,461,620 41 CITY OF STILLWATER, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS Year ended December 31, 2010 OPERATING REVENUES Charges for services OPERATING EXPENSES Personnel services Supplies Other services and charges Miscellaneous Depreciation Total operating expenses Income (loss) from operations NONOPERATING REVENUES Interest income Other income Total nonoperating revenues Income (loss) before contributions and transfers Capital contributions Change in net assets (194,625) 83,027 Net assets, January 1 8,184,039 379,547 Net assets, December 31 $ 7,989,414 $ 462,574 The notes to the financial statements are an integral part of this statement. 42 Business -type Activities Sanitary Storm Sewer Sewer $ 1,872,397 $ 490,210 327,248 240,569 25,460 8,057 1,644,493 102,369 2,911 36,005 290,550 23,780 2,290,662 410,780 (418,265) 79,430 29,891 2,515 39,939 1,082 69,830 3,597 (348,435) 83,027 153,810 - Change in net assets (194,625) 83,027 Net assets, January 1 8,184,039 379,547 Net assets, December 31 $ 7,989,414 $ 462,574 The notes to the financial statements are an integral part of this statement. 42 - Enterprise Funds Signs and Lighting Parking $ 377,533 $ 233,004 Totals $ 2,973,144 101,137 96,850 765,804 18,497 18,996 71,010 275,800 95,087 2,117,749 1,580 2,824 43,320 - 46,708 361,038 397,014 260,465 3,358,921 (19,481) (27,461) (385,777) - 4,518 36,924 28,269 - 69,290 28,269 4,518 106,214 8,788 (22,943) (279,563) - 6,196,036 6,349, 846 8,788 6,173,093 6,070,283 (99,651) 927,402 9,391,337 $ (90,863) $ 7,100,495 $ 15,461,620 43 CITY OF STILLWATER, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended December 31, 2010 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Payments to suppliers Payments to employees Net cash from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payment on loan from other funds State aid subsidy Net cash from noncapital financing activities CASH FLOWS FROM CAPITAL AND.RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Proceeds from taxes, assessments, connections Net cash from capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments Net cash from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 NON -CASH TRANSACTIONS AFFECTING FINANCIAL POSITION Contributions of capital assets received RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense (Increase) Decrease in Assets: Accounts receivable Due from other governments Prepaid items Increase (Decrease) in Liabilities: Accounts payable Contracts payable Salaries payable Due to other governments Due to component unit Compensated absences payable Net OPEB obligation Total adjustments Net cash from operating activities The notes to the financial statements are an integral part of this statement. Business -type Activities - Sanitary Storm Sewer Sewer $ 1,847,964 $ 487,049 (1,665,866) (163,405) (313,706) (231,351) (131,608) 92,293 (49,834) 39,939 (9,895) 1,082 1,082 28,836 2,212 28,836 2,212 (112,667) 95,587 1,261,210 245,276 $ 1,148,543 $ 340,863 $ 153,810 $ - $ (418,265) $ 79,430 290,550 23,780 (14,155) (2,293) (10,278) (868) (1,767) (793) 4,582 1,502 25 4,158 4,292 7,748 $ 286,657 (7,705) (7,495) 670 (981) 4,386 4,162 $ 12,863 $ (131,608) $ 92,293 44 t Enterprise Funds 46,708 Signs and (2,372) 1,500 Lighting Parking Totals $ 346,892 $ 234,599 $ 2,916,504 (274,477) (8,275) (2,112,023) (95,663) (91,875) (732,595) (23,248) 134,449 71,886 7,644 87 491 (5,021) - (5,021) 28,269 - 29,351 23,248 - 24,330 (135,840) (185,674) 39,939 (135,840) (145,735) - 3,877 34,925 - 3,877 34,925 - 2,486 (14,594) - 426,454 1,932,940 $ - $ 428,940 $ 1,918,346 . $ - $ 6,196,036 $ 6,349,846 $ (19,481) $ (27,461) $ (385,777) - 46,708 361,038 (2,372) 1,500 (17,320) (28,269) 95 (39,320) (370) (47) (2,977) (932) 2,194 (1,861) 22,615 105,994 121,114 909 4,563 7,644 87 491 (378) - - 4,158 3,082 (1,602) 10,158 1,483 2,014 15,407 $ (3,767) $ f 161,910 $ 457,663 $ (23,248) $ 134,449 $ 71,886 45 CITY OF STILLWATER, MINNESOTA STATEMENT OF NET ASSETS FIDUCIARY FUNDS December 31, 2010 TIF Note Agency Fund ASSETS Cash and pooled investments - held in escrow $ 340,210 LIABILITIES Accounts payable The notes to the financial statements are an integral part of this statement. $ 340,210 46 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement December 31, 2010 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLIC The City of Stillwater operates under the "Home Rule Charter" form of government under the provisions of the State of Minnesota law. The Mayor is the president of the Council and together with the City Council comprises the governing body of the City, which is responsible for directing the activities of the City. The City provides the following services: police and fire protection, highways and streets, parks, storm sewer, sanitary sewer, planning, zoning, and general administration. The basic financial statements of the City of Stillwater have been prepared in conformity with U.S. generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies: A. FINANCIAL REPORTING ENTITY As required by U.S. generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Stillwater and its component unit. A component unit is a legally separate entity for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component include whether or not the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. COMPONENT UNIT In conformity with U.S. generally accepted accounting principles, the financial statements of the component unit have been included in the financial reporting entity as a discretely presented component unit. Board of Water Commission The component unit column of the accompanying financial statements includes the financial data of the Board of Water Commission. This financial information is presented in a separate column to emphasize the Board of Water Commission is legally separate from the City. The Board of Water Commission was created and prescribed by the City Charter. The Commission is a three member governing board appointed by the City Council. The purpose of the Commission is to manage, control, maintain and account for the water works system owned by the City. Financial activities and budgetary control responsibilities lie with the Commission. Debt issuance must be approved by the City Council and the legal liability for debt issuance remains with the City. Operations of the water works system are funded solely by user rate fees set by the Commission. The Commission is presented as a proprietary fund type (business -type activity). Complete audited financial statements for the Board of Water Commission may be obtained by writing the Board of Water Commission, 204 North 3 rd Street, Stillwater, Minnesota 55082. OTHER ORGANIZATION The Stillwater Fire Department Relief Association is organized as a non - profit organization, legally separate from the City, by the member to provide pension and other benefits to such members, in accordance with Minnesota statutes and the Association's by -laws. Its board of directors is appointed by the membership of the Association and not by the City Council. The Association issues its own set of financial statements. All funding is conducted in accordance 47 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 with applicable Minnesota statutes, whereby state aids flow to the Association. The Association pays benefits directly to its members. Because the Association is fiscally independent of the City, the financial statements of the Association have not been included as a component of the City's reporting entity. B. BASIC FINANCIAL STATEMENTS 1. Government -Wide Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) display information about the primary government and its component unit. These statements include the financial activities of the overall City government, except for fiduciary activities. As a general rule, the effect of Interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the City enterprise funds and various other function of government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges to external parties for support. In the government -wide statement of net assets, both the governmental and business -type activities columns: (a) are presented on a consolidated basis by column; and (b) are reported on a full accrual, economic resource basis, which recognizes all long -term assets and receivables as well as long -term debt and obligations. The City's net assets are reported in three parts: (a) invested in capital assets, net of related debt; (b) restricted net assets; and (v) unrestricted net assets. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed to finance qualifying activities. The statement of activities demonstrates the degree to which the direct expenses of each function of the City's governmental activities and different business -type activity are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Program revenues include: (a) fees, fines, and charges paid by the recipients of goods, services, or privileges provided by a given function or activity; and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 2. Fund Financial Statements The fund financial statements provide information about the City's funds, including its fiduciary funds. Separate statements for each fund category-- governmental, proprietary, and fiduciary- -are presented. The emphasis of governmental and proprietary fund financial statements is on major individual governmental and enterprise funds, with each displayed as separate columns in the fund financial statements. All remaining governmental funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or incidental activities. 48 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 The City reports the following major governmental funds: General Fund The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. St. Croix Valley Recreation Center Fund This fund is used to account for the operation of the sports facility in Stillwater. Library Fund This fund is used to account for the operations of the City's library. Parks Fund The parks fund is used to account for the operations of the City's parks. Debt Service Fund The debt service fund is used to account for the accumulation of resources for, and the payment of, long -term debt principal, interest and related costs. Capital Projects Fund This fund is used to account, for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. TIF Districts Fund This fund is used to account for financial resources to be collected by and used in the City's tax increment financing districts. The City reports the following major proprietary funds: Sanitary Sewer Fund The sanitary sewer fund accounts for the provision of sanitary sewer service to the residents and commercial and industrial establishments of the City. Storm Sewer Fund The storm sewer fund accounts for the provision of storm sewer service to the residents and commercial and industrial establishments of the City. Signs and Lighting Fund The signs and lighting fund accounts for the operation and maintenance of the City's sign and lighting system. Parking Fund The parking fund accounts for the operation of parking facilities located in downtown Stillwater. Additionally the City reports the following fiduciary fund: Agency Fund To account for assets held as an agent for individuals, private organizations, other governmental units, and /or other funds. The City's agency fund accounts for pass - through funds associated with TIF related construction. 49 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The government -wide, and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Agency funds, which are included in the Fiduciary Funds, do not have a measurement focus. Private - sector standards of accounting and financial reporting issued prior to December 1, 1989, ge nerally are followed in both the government -wide and proprietary-fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The City and its component unit have elected not to follow subsequent private- sector guidance. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. The City considers all revenues to be available if they are collected within 60 days after the end of the current period. Property and other taxes, licenses, and interest are all considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long -term debt, compensated absences, and claims and judgments, which are recognized as expenditures to the extent that they have matured. Proceeds of long -term debt and acquisitions under capital leases are reported as other financing sources. The City reports deferred revenue on its governmental fund balance sheets. Deferred revenues arise when a potential revenue does not meet both the 'measurable" and "available" criteria for recognition in the current period. Deferred revenue also arises when resources are received prior to the incurrence of the qualifying expenditure. In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for deferred revenue is removed from the balance sheet and revenue is recognized. Proprietary funds distinguish operating revenues and expenses from nonoperating item. Operating revenues and expenses generally result from providing services and producing and delivering goods in connections with a proprietary fund's principal ongoing operations. The principal operating revenue of the City's enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The component unit, the Board of Water Commissions, reports its financial statements under the accrual basis of accounting as a proprietary fund type. D. BUDGETS Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. Annual appropriated budgets are adopted for the general fund and other major governmental funds as follows: St. Croix Valley Recreation, Library, and Parks fund. The City also adopts a budget for the nonmajor governmental Special Events fund, and Washington County Recycling Grant fund which are presented in the combining and individual fund section of the Comprehensive Annual Financial Report. 50 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally approved by passage of a resolution. 4. The City Council may authorize transfer of budgeted amounts between funds and may approve additional expenditures for departments in excess of the amount budgeted. 5. Formal budgetary integration is employed as a management control device during the year for the general fund and other budgeted funds. Formal budgetary integration is not employed for the debt service and the capital projects funds because effective budgetary control is achieved through general obligation bond indenture provisions and project contracts. F. CASH, CASH EQUIVALENTS AND INVESTMENTS Cash balances from all funds are pooled and invested to the extent available in investments authorized by Minnesota statutes. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable in the fund with the deficit, until adequate resources are received. These interfund balances are eliminated for the statement of net assets presentation. Investments are stated at fair value as of the balance sheet date, except for investments with original maturities of less than one year, which are carried at cost. Interest earnings are accrued at the balance sheet date. For purposes of the statement of cash flows of the proprietary funds, the cash equivalents are considered to be all highly liquid investments with a maturity of three months or less when purchased. All of the cash and investments allocated to the proprietary funds have original maturities of 90 days or less. Therefore, the entire balances in such funds are considered cash equivalents. G. PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Prepaid items are recorded under the consumption method. H. INVENTORIES The inventories of the component unit are valued at the lower of cost (first -in, first -out method) or market. Inventories of the component unit are recorded as expenditures when consumed rather than when purchased. 51 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 PROPERTY TAX LEVY AND REVENUE RECOGNITION On or before July 1 each year, all departments of the City submit budget requests to the City Administrator so that a budget may be prepared and a tax levy adopted for the following fiscal year. The budget is prepared by fund, function and department and includes information on the past year, current year estimates, and requested appropriations for the next fiscal year. Revenue estimates are prepared by the Finance Department, including the estimated tax levy needed to support City expenditures. The proposed budget and tax levy is presented to the City Council for review by August 31. The City Council reviews and makes changes to the proposed budget and tax levy. By September 15, a "proposed tax levy" is certified to the State of Minnesota and Washington County. Minnesota statutes require the counties to send out preliminary tax notices to all property owners showing the prior year's tax levy and proposed tax levy, including dollars and percentage increase or decrease between years for all taxing jurisdiction. After November 25, and before December 25, Minnesota statutes require the City to hold a public hearing and present the budget and proposed tax levy to the citizens. The City Council must adopt the final budget and "final tax levy" after closing the public hearing. The final tax levy must be less than or equal to the proposed tax levy. The final tax levy must be certified to Washington County be December 31 or the previous year's tax levy will be used by default. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. Within the governmental fund financial statements, the City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and the following January are recognized as revenue for the current year. Taxes and credits not received at the year -end are classified as delinquent and due from county taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred revenue because it is not available to finance current expenditures. Property tax levies in governmental activities is susceptible to full accrual on the government - wide statements. J. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. 52 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 Within the fund financial statements, the revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the County and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funding are completely offset by deferred revenues. Special assessment levies in governmental activities is susceptible to full accrual on the government -wide statements. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. K. INTERFUND RECEIVABLES /PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Any resulting short-term loan balances are classified as interfund receivables and payables. The non - current portion of interfund loans, if any, is reported as "advances to /from other funds." Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable from available financial resources. L. CAPITAL ASSETS Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks, street lights, and similar items) are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Infrastructure assets have been capitalized retroactively to 1980. Capital assets exceeding the City's capitalization threshold of $1,000 are recorded at historical cost or estimated historical cost if purchased or constructed. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accumulated depreciation reflected in the Statement of Net Assets. Capital assets are depreciated using the straight -line method over their estimated useful lives. Because surplus assets are sold for an immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into consideration for depreciation. Useful lives vary from 3 to 30 years for Buildings, Office Furniture and Equipment, Vehicles, Machine Shop and Equipment and Other assets, and 25 to 80 years for Infrastructure. Capital assets not being depreciated include land and construction in progress. Component Unit Utility plant, property, and equipment are recorded at cost, or in the case of contributions, at fair market value to the time received. Depreciation is calculated using the straight -line method over the assets' estimated useful lives, ranging from five to fifty years. 53 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 M. COMPENSATED ABSENCES Sick leave and vacation benefits accrue to employees based upon their term of employment and in accordance with the individual labor agreements. Vested or accumulated vacation or sick leave is accrued as incurred in the government -wide and proprietary fund financial statements. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. The current portion is calculated based on historical trends. Component unit The Board of Water Commission records a long -term liability for employee compensated absences consisting of vested sick pay and current liability for vested vacation. Employees may carry over five vacations days and one hundred sick days. Employees are compensated for sick days in excess of one hundred days at year end and for all vested sick days and vacations days upon termination. N. LONG -TERM OBLIGATIONS In the government -wide financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight -line method. Bond issue costs, if material, are reported as deferred charges and amortized over the term of the related debt using the straight -line method. In the governmental fund financial statements, bond premiums and discounts, as well as bond issue costs are recognized during the current period. The face amount of the debt issue is reported as on other financing source. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issue costs are reported as debt service expenditures. O. FUND EQUITY In the governmental fund financial statements, reservations of fund balance represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. P. INTERFUND TRANSACTIONS Interfund service transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures /expenses initially made from it that are properly applicable to another fund, are recorded as expenditures /expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. All interfund transactions are eliminated except for activity between governmental activities and business -type activities for presentation in the entity -wide statements of net assets and statements of activities. 54 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 NOTE 2 DEPOSITS AND INVESTMENTS Deposits The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the statement of net assets and the balance sheet as "Cash and pooled investments ". In accordance with Minnesota Statutes, the City maintains deposits at financial institutions which are authorized by the City Council. Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City and its component unit does not have a deposit policy for custodial risk instead follows Minnesota Statutes for deposits. Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledges must equal 110% of the deposits not covered by insurance or corporate surety bonds. Authorized collateral include: U.S. government treasury bills, notes, or bonds; issues of U.S. government agency; general obligations of state or local government rated "A" or better; revenue obligations of a state or local government rated "AA" or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time deposits insured by a federal agency. Minnesota Statutes require securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or at an account at a trust department of a commercial bank or other financial institution not owned by the depository. The City's deposits at December 31, 2010 in the amount of $2,747,257 were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes. Component Unit The Board of Water Commissions deposits at December 31, 2010 in the amount of $1,878,288 were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes. Investments Minnesota statutes authorize the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies. b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, is rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of thirteen months or less. c) General obligations rated "A" or better; revenue obligations rated "AA" or better. d) General obligations of the Minnesota Housing Finance Agency rated "A" or better. e) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. f) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. g) Guaranteed investment contracts guaranteed by the United States commercial banks or . domestic branches of foreign banks or United States insurance companies if similar debt 55 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 obligations of the issuer or the collateral pledged by the issuer is the top two rating categories. h) Repurchase or reverse repurchase agreements and securities lending agreements financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers. At December 31, 2010, the City's investment bank balances were as follows: Cash Investments Held by Trustee: Fair Type Value United States Treasury Securities $ 340,210 The investments held by the trustee are in a mutual fund (which is rated AAA) that invests in US Treasury Securities. These investments are held by an escrow agent in accordance with escrow agreements established with the sale of the MN Tax Increment Revenue Bonds (The Lofts of Stillwater Project) Series 2006. This escrow account will be used to collect tax revenues and remit its payment obligations. These funds are recorded in the City's financial statements as an agency fund. Investments Held with Broker: Interest Rate Risk Interest rate risk is the risk that changes in interest rates that will adversely affect the fair value of an investment. As a means of limiting the City's exposure to interest rate risk, the City's investment policy limits 25% of the City's total investment portfolio to maturities not to extend beyond 5 years and under no circumstance should any investment maturity extend beyond 10 years without prior City Council approval. As of December 31, 2010, the City had the following investments and maturities: Type Repurchase agreement Money market funds Municipal bonds Negotiable CDs US Agencies: Federal Home Loan Federal National Mortgage Association Federal Home Loan Mortgage Corporation Total Fair Less Than 1 to 5 5 to 10 Value 1 Year Years Years $ 2,452,065 $ 2,452,065 $ - $ 9,869,757 9,869,757 - - 140,060 - 140,060 - 1,463,556 1,463,556 - - 6,980,225 - 5,494,560 1,485,665 1,501,210 - 1,501,210 - 4,498,905 - 2,994,160 1,504,745 $ 26,905,778 $ 13,785,378 $10,129,990 $ 2,990,410 Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This risk is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City's investment policy does not further address credit risk beyond what is prescribed in Minnesota Statute §118A. As of December 31, 2010, the investments, as rated by Moody's Investors Service, had the following ratings: 56 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 NOTE 3 Credit Type Quality Rating Amount Money market funds AAA $ 9,869,757 Municipal bonds AA 140,060 US Agencies: Federal Home Loan AAA 6,980,225 Federal National Mortgage Association AAA 1,501,210 Federal Home Loan Mortgage Corporation AAA 4,498,905 Tota 1 $ 22, 990,157 Concentration of Risk The City places no limit on the amount that the City may invest in any one issuer, but limits individual investment instrument amounts to $500,000 or less. As of December 31, 2010, the investments which individually comprise more than 5 percent of the City's total investments were US Agencies of which comprised of the following types: Type US Agencies: Federal Home Loan Federal National Mortgage Association Federal Home Loan Mortgage Corporation Amount Percentage $ 6,980,225 25.94% 1,501,210 5.58% 4,498,905 16.72% Custodial Risk For an investment, custodial credit risk is the risk that, in the event of failure of the couterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The City does not have a policy specific for investment custodial credit risk. CAPITAL ASSETS Capital asset activity for the year ended December 31, 2010 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated Land $ 8,111,426 $ 901,838 $ 14,131 $ 8,999,133 Construction in Process 8,235,632 2,333,577 6,412,706 4,156,503 Total capital assets, not being depreciated 16,347,058 3,235,415 6,426,837 13,155,636 Capital Assets, Being Depreciated Buildings and Other Improvements 37,176,276 516,505 37,692,781 improvements Other Than Buildings 4,149,227 93,179 - 4,242,406 Machinery and Equipment 6,118,275 308,046 281,087 6,145,234 Vehicles 4,106,885 70,527 53,079 4,124,333 Infrastructure 47,741,155 337,000 449,975 47,628,180 Total Capital Assets, Being Depreciated 99,291,818 1,325,257 784,141 99,832,934 Accumulated Depreciation for: Buildings and Other Improvements 8,730,648 1,139,345 - 9,869,993 improvements Other Than Buildings 982,632 204,849 - 1,187,481 Machinery and Equipment 3,356,657 528,353 262,345 3,622,665 Vehicles 2,330,659 339,899 27,155 2,643,403 Infrastructure 11,727,419 1,347,505 449,975 12,624,949 Total Accumulated Depreciation 27,128,015 3,559,951 739,475 29,948,491 Total Capital Assets, Being Depreciated, Net 72,163,803 (2,234,694) 44,666 69,884,443 Governmental Activities Capital Assets, Net $ 88,510,861 $ 1,000,721 $ 6,471,503 $ 83,040,079 57 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 Beginning Ending Balance Increases Decreases Balance Business -Type Activities: Capital Assets, Not Being Depreciated Land $ 122,920 $ 279,700 $ - $ 402,620 Construction in Process 9,999 17,012 9,999 17,012 Total capital assets, not being depreciated 132,919 296,712 9,999 419,632 Capital Assets, Being Depreciated Buildings and Other Improvements 39,575 6,024,789 - 6,064,364 Improvements Other Than Buildings 885,025 37,941 - 922,966 Machineryand Equipment 599,798 32,266 - 632,064 Vehicles 521,246 - - 521,246 Infrastructure 9,627,271 153,810 - 9,781,081 Total Capital Assets, Being Depreciated 11,672,915 6,248,806 17,921,721 Accumulated Depreciation for Buildings and Other Improvements 2,377 791 3,168 Improvements Other Than Buildings 226,236 40,074 266,310 Machinery and Equipment 223,569 59,191 282,760 Vehicles 257,058 31,237 - 288,295 Infrastructure 3,941,080 229,744 - 4,170,824 Total Accumulated Depreciation 4,650,320 361,037 - 5,011,357 Total Capital Assets, Being Depreciated, Net 7,022,595 5,887,769 - 12,910,364 Business -Type Capital Assets, Net $ 7,155,514 $ 6,184,481 $ 9,999 $13,329,996 Component Unit: Capital Assets, Not Being Depreciated Land Use Rights $ 4,987 $ 90,000 $ - $ 94,987 Construction in Process 852,272 73,782 77,900 848,154 Total capital assets, not being depreciated 857,259 163,782 77,900 943,141 Capital Assets, Being Depreciated: Equipment 597,838 7,907 - 605,745 Distribution System 15,698,306 113,488 15,811,794 Total Capital Assets, Being Depreciated 16,296,144 121,395 16,417,539 Accumulated Depreciation for: Equipment 443,083 29,480 472,563 Distribution System 5,266,795 353,394 5,620,189 Total Accumulated Depreciation 5,709,878 382,874 - 6,092,752 Total Capital Assets, Being Depreciated, Net 10,586,266 (261,479) - 10,324,787 Component Unit Capital Assets, Net $11,443,525 $ (97,697) $ 77,900 $11,267,928 Depreciation expense was charged to governmental functions as follows: General government $ 242,303 Public safety 341,794 Public works 1,695,948 Culture and Recreation 1,279,906 Total Depreciation Expense, Governmental Activities $ 3,559,951 NOTE 4 LEASES CAPITAL LEASE In 2009, the City has entered into a lease agreement as lessee for financing the acquisition of lighting equipment for an outdoor ice skating rink at the City's St. Croix Valley Recreation Center. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has 58 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 been recorded at the present value of their future minimum lease payments as of the inception date. The asset acquired through capital lease is as follows: Governmental Activities As set: Machinery and equipment $ 51,324 Less: Accumulation depreciation (4,705) Total $ 46,619 The future minimum lease obligations and the net present value of these minimum lease payments as of December 31, 2010, are as follows: NOTE 5 LONG -TERM DEBT GENERAL OBLIGATION BONDS The City issues general obligation bonds for general government, improvement, revenue and tax increment activities. General obligation bonds are direct obligations of the City and pledge the full faith, credit, and taxing power of the City. The general government bonds outstanding are to be repaid from general tax levies. The improvement debt is expected to be repaid primarily from the special assessments to benefited properties. Debt service funds related to the retirement of the improvement bond issues having a fund balance of $864,027 as of December 31, 2010, have been established to cover defaults by the property owners. Delinquent and deferred special assessments receivable as of December 31, 2010, amount to $415,120. The revenue bonds are expected to be paid from revenues generated from the project. The tax increment bonds outstanding are to be paid from the pledged tax increment revenues. Total interest incurred and charged to expense during the year ended December 31, 2010 in the government -wide financial statements of the primary government was $1,251,356. Component Unit The Board of Water Commission interest incurred and charged to expense was $23,353 during 2010. Governmental Year Ending December 31 Activities 2011 11,927 2012 11,927 2013 11,927 2014 11,927 Total minimum lease payments 47,708 Less: amount representing interest (5,631) Present value of minimum lease payments $ 42,077 NOTE 5 LONG -TERM DEBT GENERAL OBLIGATION BONDS The City issues general obligation bonds for general government, improvement, revenue and tax increment activities. General obligation bonds are direct obligations of the City and pledge the full faith, credit, and taxing power of the City. The general government bonds outstanding are to be repaid from general tax levies. The improvement debt is expected to be repaid primarily from the special assessments to benefited properties. Debt service funds related to the retirement of the improvement bond issues having a fund balance of $864,027 as of December 31, 2010, have been established to cover defaults by the property owners. Delinquent and deferred special assessments receivable as of December 31, 2010, amount to $415,120. The revenue bonds are expected to be paid from revenues generated from the project. The tax increment bonds outstanding are to be paid from the pledged tax increment revenues. Total interest incurred and charged to expense during the year ended December 31, 2010 in the government -wide financial statements of the primary government was $1,251,356. Component Unit The Board of Water Commission interest incurred and charged to expense was $23,353 during 2010. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 General obligation bonds currently outstanding are as follows: PRIMARY GOVERNMENT: Governmental Activities: G.O. Capital Outlay Bonds: $1,345,000 Bonds of 2003A $755,000 Bonds of 2004B $1,480,000 Bonds of 2005A $3,160,000 Refunding Bonds of 2005B $6,4000,000 Bonds of 2006A $1,290,000 Bonds of 2007A $1,445,000 Bonds of 2008A $1,455,000 Bonds of 2009A $1,005,000 Refunding Bonds of 2009B $4,095,000 Refunding Bonds of 2009D Total G.O Capital Outlay Bonds G.O. Improvement Bonds: $4,695,000 Bonds of 2004A G.O. Revenue Bonds: Issue Maturity Interest Original Payable Date Date Rate Issue 12/31/10 2,695,000 1,670,000 $1,420,000 Refunding Bonds of 2009C 02/15/09 04/01 /03 02/01 /11 2.67% 1,345,000 185,000 03/01/04 02/01/12 2.00 % -3.15% 755,000 200,000 03/01/05 02/01/13 3.08% 1,480,000 610,000 03/01/05 02/01/21 3.63% 3,160,000 2,380,000 02/15/06 02/01/26 3.88% 6,400,000 4,980,000 03/08/07 02/01/15 3.76% 1,290,000 830,000 02/15/08 02/01/16 2.82% 1,445,000 1,125,000 02/15/09 02/01/17 2.29% 1,455,000 1,300,000 02/15/09 02/01/19 2.51% 1,005,000 900,000 02/15/09 0210122 2.30% 4,095,000 4,095,000 101,193 2021-2025 2,395,000 22,430,000 16,605,000 - 03/01/04 02/01/17 2.00 % - 3.80% 4,695,000 2,750,000 $2,135,000 Bonds of 2000D 04/01/00 06/0120 5.00 % -5.75% 2,135,000 - $2,695,000 Refunding Bonds of 2005C 04/01/03 06/01/18 3.39% 2,695,000 1,670,000 $1,420,000 Refunding Bonds of 2009C 02/15/09 06/0120 2.75% 1,420,000 1,420,000 Total G.O. Revenue Bonds Principal Interest Principal 6,250,000 3,090,000 G.O. Tax Increment Bonds: $ 523,540 $ 375,000 $ 88,563 $ 395,000 $ 91,145 $3,435,000 Refunding Bonds of 2003B 04/01/03 02/01/13 2.97% 3,435,000 1,145,000 $5,300,000 Bonds of 2008B 07/01/08 02/0120 4.23% 5,300,000 5,015,000 Total G.O. Tax Increment Bonds 72,377 2014 1,550,000 8,735,000 6,160,000 Total general obligation bonds COMPONENT UNIT: 2000B G.O.Revenue Bonds 04/01/00 Total component unit general obligation bond Total reporting entity general obligation bonds 42,110,000 28,605,000 02/01/15 4.00 % -5.00% 1,330,000 430,000 1,330,000 430,000 $ 43,440,000 $ 29,035,000 Annual debt service requirements to maturity for general obligation debt are as follows: .E PRIMARY GOVERNMENT Governmental Activities Years ending G.O. Capital Outlay Bonds G.O. Improvement Bonds G.O. Revenue Bonds December 31, Principal Interest Principal Interest Principal Interest 2011 $ 2,220,000 $ 523,540 $ 375,000 $ 88,563 $ 395,000 $ 91,145 2012 2,095,000 456,935 375,000 77,313 305,000 81,239 2013 1,735,000 397,502 385,000 65,148 315,000 72,377 2014 1,550,000 345,263 390,000 52,068 320,000 63,070 2015 1,395,000 298,250 400,000 38,140 335,000 53,242 2016-2020 4,855,000 938,418 825,000 31,240 1,420,000 101,193 2021-2025 2,395,000 262,024 - - - - 2026- 2030 360,000 7,200 - - - - Total $16,605,000 $3,229,132 $2,750,000 $352,472 $3,090,000 $ 462,266 .E CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 Annual debt service requirements to maturity for general obligation debt (continued): PRIMARY GOVERNMENT Governmental Activities Years ending rlaramhar Z1 LV 1 1 2012 2013 2014 2015 2016 -2020 2021 -2025 2026 -2030 COMPONENT UNIT G.O. Tax Increment Bonds G.O. Revenue Bonds Principal Interest Principal Interest $ 470,000 $ 252,725 $ 90,000 $ 20,958 500,000 238,218 85,000 16,299 535,000 221,850 85,000 11,688 155,000 203,868 85,000 7,013 175,000 191,370 85,000 2,338 1,120,000 835,105 - - 1,440,000 583,619 - - 1,765,000 265,676 - - Total $ 6,160,000 $ 2,800,612 $ 430,000 $ 58,296 OTHER LONG -TERM DEBT In 2000 and 2003, the City entered into a $1,100,000 and an $850,000, respectively, Stream Protection and Improvement Loan agreements with the State of Minnesota to finance the diversion of storm water runoff from Browns Creek. Funding is provided by impact fees paid by developers who develop in the annexation area benefiting from the mitigation project. Annual debt service requirements to maturity for other long -term debt are as follows: Years ending Other Long -Term Debt December 31, Principal Interest 2011 $ 140,000 $ - 2012 85,000 - 2013 42,500 - Total $ 267,500 $ - CHANGE IN LONG -TERM LIABILITIES The following is a schedule of changes in the City's long -term liabilities for the year ended December 31, 2010: PRIMARY GOVERNMENT: Governmental activities Bonds payable: G.O. Capital Outlay Bonds G.O. Improvement Bonds G.O. Revenue Bonds G.O. Tax increment Bonds Unamortized premium Total bonds payable Other long -term debt Capital lease Net OPEB obligation Compensated absences Governmental activities Long -term liabilities Payable Payable Due Within 12131/2009 Additions Retirements 12131/2010 One Year $ 22,755,000 $ - $ 6,150,000 $16,605,000 $ 2,220,000 3,120,000 - 370,000 2,750,000 375,000 4,835,000 - 1,745,000 3,090,000 395,000 6,585,000 - 425,000 6,160,000 470,000 307,628 - 32,818 274,810 30,517 37,602,628 - 8,722,818 28,879,810 3,490,517 462,500 - 195,000 267,500 140,000 51,324 - 9,247 42,077 9,730 457,793 205,955 - 663,748 - 849,863 573,144 490,075 932,932 248,031 39,424,108 779,099 9,417,140 30,786,067 3,888,278 61 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 For the governmental activities, compensated absences are generally liquidated by the General Fund. NOTE 6 PENSION PLANS A. DEFINED BENEFIT PENSION PLANS Plan Description All full -time and certain part-time employees of the City of Stillwater are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund ( PEPFF), which are cost - sharing, multiple - employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire - fighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by state statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service. For all PEPFF members and PERF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after 62 Payable Payable Due Within 12/3112009 Additions Retirements 12/31/2010 One Year PRIMARY GOVERNMENT (Continued): Business -type activities Net OPEB obligation 48,004 15,407 - 63,411 - Compensated absences 143,456 83,071 72,913 153,614 42,874 Total long -term liabilities - primary government: $ 39,307,940 $ 877,577 $ 9,457,235 $ 30,728,282 $ 3,900,635 COMPONENET UNIT: Bonds payable 520,000 90,000 430,000 90,000 Compensated absences 106,135 47,428 46,175 107,388 42,775 Total long -term liabilities - component unit 626,135 47,428 136,175 537,388 132,775 Total long -term liabilities $ 39,934,075 $ 925,005 $ 9,593,410 $ 31,265,670 $ 4,033,410 For the governmental activities, compensated absences are generally liquidated by the General Fund. NOTE 6 PENSION PLANS A. DEFINED BENEFIT PENSION PLANS Plan Description All full -time and certain part-time employees of the City of Stillwater are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund ( PEPFF), which are cost - sharing, multiple - employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire - fighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by state statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service. For all PEPFF members and PERF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after 62 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single -life annuity is a lifetime annuity that ceases upon the death of the retiree - -no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF and PEPFF. That report may be obtained on the Internet at www.mnpera.org by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or by calling (651) 296 -7460 or 1- 800 - 652 -9026. B. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.0 %, respectively, of their annual covered salary in 2010. PEPFF members were required to contribute 9.4% of their annual covered salary in 2010. The City of Stillwater is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan members, 7% for Coordinated Plan members, and 14.1% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2010, 2009 and 2008 were $232,371, $225,295, and $221,867, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2010, 2009, and 2008 were $309,826, $318,523, and $306,188, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. The Board of Water Commission employees also participate in the Public Employees Retirement Fund. The Commission's contributions to the Public Employees Retirement Fund for the years ending December 31, 2010, 2009, and 2008 were $26,382, $24,454, and $23,505, respectively. B. DEFINED CONTRIBUTION PLAN Five council members of the City of Stillwater are covered by the Public Employees Defined Contribution Plan ( PEDCP), a multiple - employer deferred compensation plan administered by the Public Employees Retirement Association of Minnesota (PERA). The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate 63 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 contributes 5 percent of salary which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2 percent of employer contributions and twenty -five hundredths of one percent of the assets in each member's account annually. Total contributions made by the City of Stillwater during fiscal year 2010 were: Contribution Amount Percentage of Covered Payroll Employee Employer Employee Employer $ 1,890 $ 1,890 5.0% 5.0% C. STILLWATER FIRE DEPARTMENT RELIEF ASSOCIATION Plan Description Required Rates 5.0% The Stillwater Fire Department Relief Association (the Association) is the administrator of a single - employer defined benefit pension plan which operates under the provisions of Minnesota statutes Chapter 424A, as amended. The plan provides for retirement, disability, and death benefits to its plan members and their beneficiaries. Benefits are established by state statute. The Association is governed by a board of nine members: six board members are elected by the members of the Association, while the Stillwater mayor, city treasurer, and fire chief are ex- officio members of the Board of Trustees. Benefits are payable in a lump sum, based upon years of service, to eligible members of the Stillwater Fire Department Relief Association. At December 31, 2010, the benefit level was at $5,000 per year of service. The Stillwater Fire Department Relief Association issues a publicly available financial report that includes the financial statements for the organization. That report may be obtained by contacting the Fire Department at the City of Stillwater. Funding Policy Minnesota statutes specify minimum contributions that may be required from the City on an annual basis. These minimum contributions are determined based on the amount required to meet normal cost plus amortizing any prior year's service cost over a ten -year period. A contribution was not required from the City for the year ended December 31, 2010. The Stillwater Fire Department Relief Association also received funding from the Minnesota two percent fire premium tax. The City receives the contribution and is required by state statute to pass this through as payment to the Association. This transaction is recorded as a revenue and an expenditure in the City's financial statements. Investment earnings also add to the resources available for benefits. Annual Pension Cost and Net Pension Obligation The governing board of the Association request changes in benefit levels and contribution requirements that must be approved by the City council. The funding policy provides that contributions from the City (when applicable) and from the State of Minnesota are in amounts sufficient to accumulate assets to pay benefits when due. The city passes through state aids 64 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 allocated to the plan, in accordance with state statutes. The annual pension information is as follows: Actuarial valuation date: . Actuarial cost method: Assumed rate of return: Actuarial valuation period: Amortization method: Amortization period: Inflation rate: Project salary increase: Post retirement benefit increases Asset valuation method: 12/31 /2010 Entry age mormal actuarial cost method 5% Open Level dollar - open ten years None Not applicable $0 per year of service Market value at 12/31 The City's annual pension cost and net pension obligation, as calculated by state statutes, for the year ended December 31, 2010, were as follows: Annual Required Contribution $ 100,411 Interest on Net Pension Obligation - Adjustment to Annual Required Contribution - Annual Pension Cost 100,411 Contributions Made 100,411 Increase (Decrease) in Net Pension Obligation - Net Pension Obligation - Beginning of Year Net Pension Obligation - End of Year - The Relief Association's annual pension cost and related information for the plan is as follows: 2010 2009 2008 Annual Pension Cost (APC) $ 100,411 $ 100,870 $ 118,388 Percentage of APC Contributed 100% 100% 100% Net Pension Obligation N/A N/A NIA Funding Progress The actuarial accrued liability of $2,708,844 at December 31, 2010 was calculated using the State of Minnesota Schedule I form for lump sum pensions plans. This results in deficit net assets available for benefits of $63,526 as of December 31, 2010. Membership of the Association at December 31, 2010, was comprised of the following: Terminated Members Entitled to Benefits But Have Not Yet Received Them 9 Active Plan Participants Vested 11 Partially Vested 9 Non - Vested 15 Total 44 Contributions Required and Contributions Made The City makes contributions to the Association annually in an amount equal to the Fire Aid received from the State of Minnesota. The City of Stillwater is required to make additional 65 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 NOTE 7 contributions to the Association in the following year if the following year's anticipated administrative expenses plus the anticipated increase in the required reserves plus amortization of the original unfunded accrued liability exceeds the anticipated revenues. The City was not required to make any contributions in excess of the Fire Aid for 2010, 2009 and 2008. The contributions made by the City to the Association for 2010, 2009, and 2008 were $100,411, $100,870, and $118,388, respectively. Related Party Investments As of December 31, 2010 and for the year then ended, the Association held no securities issues by the City or other related parties. POST EMPLOYMENT HEALTH CARE BENEFITS At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postempooyment Benefits Other than Pensions. The City engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as of January 1, 2008. A. PLAN DESCRIPTION The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active employees, who started before January 1, 1989 and retire from the City when eligible for PERA benefits, are eligible for free medical coverage for themselves and their families for life. Active employees, who started after January 1, 1989 and retire the City when eligible for PERA benefits, may continue coverage with respect to both themselves and their eligible dependent(s) under the City's health benefits program until age 65. Pursuant to the provisions of the plan, retirees are required to pay the total premium cost. As of December 31, 2010 there were approximately 95 active participants and 69 retired participants receiving benefits from the City's health plans. B. FUNDING POLICY The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2010, the City contributed $482,239 to the plan. C. ANNUAL OPEB COST AND NET OPEB OBLIGATION The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any un- funded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually paid from the plan, and changes in the City's net OPEB obligation. Annual Required Contribution Interest on Net OPEB Obligation Adjustment to Annual Required Contribution Annual OPEB Cost (Expense) Contributions Made Increase in Net OPEB Obligation Net OPEB Obligation- Beginning of Year Net OPEB Obligation- End of Year $ 710,425 25,290 (32,114) 703,601 (482, 239) 221,362 505,797 $ 727,159 .. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 NOTE 8 The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2010, 2009, and 2008: Fiscal Annual Year OPEB Ended Cost 12/31/10 $ 710,425 12/31/09 707,126 12/31/08 710,425 Percentage of Annual OPEB Cost Contributed 68.5% 63.1% 65.6% D. FUNDED STATUS AND FUNDING PROGRESS Net OPEB Obligation 727,159 505,797 244,548 As of January 1, 2008, the most recent actuarial valuation date, the City's unfunded actuarial accrued liability (UAAL) was $10,596,270. The annual payroll for active employees covered by the plan in the actuarial valuation was $5,839,069 for a ratio of UAAL to covered payroll of 181.5 %. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. E. ACTUARIAL METHODS AND ASSUMPTIONS Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. In the December 31, 2008 actuarial valuation, the entry age normal cost method was used. The actuarial assumptions included a 5% investment rate of return (net of administrative expenses), which is based on the employer's own investments calculated based on the funded level of the plan at the valuation date. The initial healthcare trend rate was 8 %, reduced by decrements to an ultimate rate of 4% after five years. The UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period at December 31, 2010 was 27 years. STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY Deficit Net Assets and Fund Balance On December 31, 2010, the following funds had a deficit net assets or fund balance: Amount Signs & Lighting Fund $ (90,863) The Signs'and Lighting Fund deficit will be eliminated with future service charge receipts. 67 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 NOTE 9 NOTE 10 Expenditures in Excess of Adopted Budget On December 31, 2010, the following funds had expenditures in excess of its adopted budget: Amount St Croix Valley Recreation Center Fund $ 240,252 The St. Croix Valley Recreation Center fund replaced the turf in its soccer dome with the assistance from a non - for - profit organization. The non - for - profit organization pledged $183,100 (in equal installments over a ten year period) towards the total cost ($ 395,883) of the turf replacement. This was not a budgeted item for 2010, however the City Council approved this expenditure. RESERVATIONS AND DESIGNATIONS OF FUND BALANCE At December 31, 2010, the City had reserved or designated portions of its fund balance through legal restrictions, City Council action, policy and /or intent. The following is a summary of the reservations and designations: General Fund: Reserved for prepaid items $ 52,728 Designated for compensated absences 875,875 Special Revenue Fund: Reserved for prepaid items 14,017 Designated for compensated absences 57,047 Debt Service Funds: Reserved for debt retirement 5,986,523 Capital Projects Funds: Designated for capital projects 7,104,479 Designated for TIF related projects 7,483,495 CONTINGENCIES Federal and State Funds - The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2010. Litigation — The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgement of the City attorney, remotely recoverable by plaintiffs. M CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 NOTE 11 INTERFUND RECEIVABLES AND PAYABLES Individual fund receivable and payable balances at December 31, 2009 are as follows: Interfund Receivable Interfund Payable Amount Capital Projects Signs & Lighting $ 105,406 Due from Primary Government Due to Component Unit Amount Board of Water Commission Capital Projects $ . 92,226 Board of Water Commission Sanitary Sewer 20,295 Total $ 112,521 Due from Component Unit Due to Primary Government Amount Board of Water Commission Miscellaneous Grants $ 12,100 The interfund receivable /payable balance between the Capital Project fund and the Signs & Lighting fund represent the elimination of a negative cash balance within the interfund payable fund. The interfund balances, which net to $100,421 (as shown on the statement of net assets), between the component unit and the primary government reflect services provided by /from the City to /by the component unit and funds held by the City for repayment of debt. NOTE 12 INTERFUND TRANSFERS Funds are transferred from one fund to support expenditures of other funds in accordance with authority established for the individual fund. Transfers between individual major funds, and nonmajor governmental funds in the aggregate fund types during the year ended December 31, 2010 were as follows: Transfers In St. CroixValley Other General Recreation Debt Nonmajor Transfers Out Fund Center Library Parks Service Funds Totals General Fund $ - $ - $1,008,130 $652,322 $ - $ 18,300 $ 1,678,752 St CroixValley Recreation Center - - - - 274,239 - 274,239 Capital Projects 185,704 235,670 - 15,847 195,000 - 632,221 TIF Districts - - - - 753,042 - 753,042 Other Nonmajor Funds - - 4,656 - - - 4,656 Totals $185,704 $ 235,670 $1,012,786 $668,169 $1,222,281 $18,300 $3,342,910 NOTE 13 RISK MANAGEMENT The City is exposed to various risks of loss related to: torts; theft of, damage to and destruction of City assets; errors and omissions; injuries to employees; and natural disasters. The City has entered into a joint powers agreement with the League of Minnesota Cities Insurance Trust (LMCIT) to protect the City in the event of loss. The LMCIT is a public entity risk pool currently operating as a common risk management and insurance program for Minnesota cities. The agreement for formation of the LMCIT provides that the pool will be self- sustaining through member premiums and will reinsure through commercial companies for claims in excess of reserved amounts for each insured event. The pool can make additional assessments to make the pool self- sustaining. The City has determined that it is not possible to estimate the amount of such additional assessments, if any; however, they are not expected to be material to these financial statements. There have been no significant reductions in insurance coverage during 2009 and settlements have not exceeded insurance coverage during the current year and prior three years. .• CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 The State of Minnesota mandates and regulated workers' compensation insurance and the City of Stillwater also purchased this required coverage from the LMCIT. Component Unit The Board of Water Commission is exposed to various risks of loss related to: torts; theft of, damage to and destruction of City assets; errors and omissions; injuries to employees; and natural disasters for which the Board of Water Commission carried commercial insurance. There have been no significant reductions in insurance compared to the prior year, and settlement amounts have not exceeded insurance coverage for the current year or the three prior years. NOTE 14 TAX INCREMENT FINANCING AUTHORITY The City is the administering authority for the following tax increment financing districts: District name Scattered Woodland Statute authorization Chapter 472 -A Chapter 472 -A Sites Lakes Jr High Anchobaypro Development district # 1 1 1 2 City tax increment district # 1 4 6 8 County tax increment district # 9 17 43 65 District type Redevelopment Redevelopment Redevelopment Housing Statute authorization Chapter 472 -A Chapter 472 -A Chapter 469 Chapter 469 Year established 1985 1986 1993 2000 District duration 25 years* 25 years* 25 years* 25 years* Current tax capacity $ 1,807,017 $ 765,108 $ 99,474 $ 108,943 Original tax capacity 251,940 2,598 3 14,293 Captured tax capacity 1,555,077 762,510 99,471 94,650 Fiscal disparity deduction 556,808 - - - Retained by authority 998,269 762,510 99,471 94,650 Total bonds issued and outstanding at 12/31/09 $ - $ 1,145,000 $ - $ - First tax increment receipt 1986 1987 1995 2002 Date of required decertification 12/31/2011 12/31/2012 12/31/2020 12/31/2027 District name (continued) Curve Crest Scattered Villa Sites Development district # 1 1 City tax increment district # 9 10 County tax increment district # 70 71 District type Housing Redevelopment Statute authorization Chapter 469 Chapter 469 Year established 2002 2004 District duration 25 years* 25 years* Current tax capacity $ 73,760 $ 1,298,994 Original tax capacity 1,845 145,205 Captured tax capacity 71,915 1,153,789 Fiscal disparity deduction - - Retained by authority 71,915 1,153,789 Total bonds issued and outstanding at 12/31/09 $ - $ 5,015,000 First tax increment receipt 2004 2004. Date of required decertification 12/31/2029 12/31/2030 *After the receipt of the first tax increment 70 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2010 NOTE 15 CONDUIT DEBT OBLIGATIONS The City has authorized the issuance of the following conduit debt obligations: These bonds are secured by the property financed and are payable solely from pledged revenues in accordance with the terms of the indenture. These bonds do not constitute indebtedness, pecuniary liability, general or moral obligation or pledge of faith or credit or any taxing power. Accordingly, these bonds have not been included or reported in the accompanying financial statements. In addition, the City is the trustee of the escrow to facilitate the repayment of the debt of the Tax Increment Revenue Bonds only. 71 Award Issue Outstanding Type Date Amount 12/31/10 Variable Rate Demand Private School Facility Revenue 12/05/00 3,155,000 1,290,000 Variable Rate Demand Multi - family Housing Revenue 06/04/02 7,880,000 7,590,000 Minnesota Health Care Revenue 06/01/05 30,000,000 28,225,000 Tax Increment Revenue Bonds 07/20/06 2,390,000 2,150,000 Total $ 39,255,000 These bonds are secured by the property financed and are payable solely from pledged revenues in accordance with the terms of the indenture. These bonds do not constitute indebtedness, pecuniary liability, general or moral obligation or pledge of faith or credit or any taxing power. Accordingly, these bonds have not been included or reported in the accompanying financial statements. In addition, the City is the trustee of the escrow to facilitate the repayment of the debt of the Tax Increment Revenue Bonds only. 71 Required Supplementary Information CITY OF STILLWATER, MINNESOTA SCHEDULE OF FUNDING PROGRESS OTHER POST EMPLOYMENT HEALTH CARE BENEFITS AND STILLWATER FIRE RELIEF PENSION PLAN Items labeled N/A indicated that the item does not apply. 75 Actuarial UAAL as a Actuarial Accrued Percentage Actuarial Value of Liability Unfunded Funded Covered of Covered Valuation Assets (AAL) AAL Ratio Payroll Payroll Plan Date (a) (b) (b -a) (alb) (c) ((b -a) /c) Other Post Retirement Health Care Benefits 1/1/2008 $ - $ 10,596,270 $ 10,596,270 0.0% $ 5,839,069 181.5% Stillwater Fire Relief Pension Plan 12/31/2008 3,079,372 2,626,218 (453,154) 117.3% N/A N/A 12/31/2009 2,407,212 2,711,818 304,606 88.8% N/A N/A 12/31/2010 2,708,844 2,645,318 (63,526) 102.4% N/A N/A Items labeled N/A indicated that the item does not apply. 75 Combining and Individual Fund Financial Statements Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for specific revenues that are restricted to expenditures for a particular purpose. Special Events Fund — to account for special events held within the City and sponsored by City civic organizations. Financing is primarily from the General fund and service charges. Library Donations Fund — to account for fund received specifically used for library functions that are not part of the library operating budget. Park/Trail Dedication Fund — to account for fees paid by developers and legally restricted to capital outlay for City parks. Park Maintenance Fund — to account for fees paid by developers for the maintenance of parks within the development area. Stillwater Doa Park Fund — to account for funds received to fund a possible dog park. Washington County Recycling Grant Fund — to account for funds received from Washington County to fund the recycling fund within the City. Public Safety Proarams Fund — to account for funds received for the City's public safety programs. Lodging Tax — to account for funds received for lodging tax and disbursed to the Greater Stillwater Area Convention and Visitor's Bureau for the purpose of attracting tourism and convention business to the City. Miscellaneous Grants Fund — to account for grant funds received used to fund various projects /services within the City. CITY OF STILLWATER, MINNESOTA ASSETS Cash and pooled investments Accrued interest receivable Accounts receivable Due from component unit Total Assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Due to other governments Total Liabilities Fund balance: Unreserved reported in: Undesignated: Special Revenue Funds Total fund balance COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2010 Special Revenue Stillwater Special Library Park/Trail Park Dog Events Donations Dedication Maintenance Park $ 17,403 $ 44,303 $ 343,387 $ 145,474 $ 4,426 50 156 1,010 493 11 20,000 - - - - 37,453 44,459 344,397 145,967 4,437 1,738 - 1,738 3 3 37,453 42,721 344,397 145,967 4,434 37,453 42,721 344,397 145,967 4,434 Total liabilities and fund balance $ 37,453 $ 44,459 $ 344,397 $ 145,967 $ 4,437 a Special Revenue Washington County Public Safety Lodging Miscellaneous Recycling Grant Programs Tax Grants Total Nonmajor Governmental Funds r $ 173,763 $ 105,081 $ 29,601 $ 32,148 $ 895,586 489 387 122 - 2,718 - - - - 20,000 - - - 12,100 12,100 174,252 105,468 29,723 44,248 930,404 20,692 2,084 - - 53 - 20,692 2,137 - 24,517 53 24,570 153,560 103,331 29,723 44,248 905,834 153,560 103,331 29,723 44,248 905,834 $ 174,252 $ 105,468 $ 29,723 $ 44,248 $ 930,404 81 CITY OF STILLWATER, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2010 REVENUES Lodging tax Intergovernmental Charges for services Fines and forfeits Interest Donations Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Public works Culture and recreation Capital Outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Special Revenue Stillwater Special Library Park/Trail Park Dog Events Donations Dedication Maintenance Park 35,207 - - - - 57 381 2,597 1,250 35 13,000 11,848 - - 5,499 20,000 8,267 65,000 - - 68,264 20,496 67,597 1,250 5,534 71,518 18,926 - - 1,100 71,518 18,926 - - 1,100 (3,254) 1,570 67,597 1,250 4,434 Transfers in 18,300 Transfers out - Total other financing sources (uses) 18,300 Net change in fund balance 15,046 Fund balance- January 1 22,407 Fund balance- December 31 $ 37,453 (4,656) - - - (4,656) - - - (3,086) 67,597 1,250 4,434 45,807 276,800 144,717 - $ 42,721 $ 344,397 $ 145,967 $ 4,434 82 Special Revenue Washington County Public Safety Lodging Miscellaneous Recycling Grant Programs Tax Grants $ - $ - $ 139,026 $ - $ 139,026 34,192 - - 28,290 62,482 - - - - 35,207 - 19,778 - - 19,778 1,248 990 1,157 - 7,715 - 4,478 - - 34,825 - 6,309 - 43,200 142,776 35,440 31,555 140,183 71,490 441,809 - - 130,449 6,271 136,720 - 42,735. - 207 42,942 22,371 - - - 22,371 - - - - 91,544 - 5,324 - 88,723 94,047 22,371 48,059 130,449 95,201 387,624 13,069 (16,504) 9,734 (23,711) 54,185 - - - - 18,300 - - - - (4,656) - - - - 13,644 13,069 (16,504) 9,734 (23,711) 67,829 140,491 119,835 19,989 67,959 838,005 $ 153,560 $ 103,331 $ 29,723 $ 44,248 $ 905,834 Total Nonmajor Governmental Funds 83 CITY OF STILLWATER, MINNESOTA SPECIAL EVENTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 Budgeted Variance with Amounts Final Budget Original and Positive Fin Actual Amounts (Negative) REVENUES Charges for services Interest Donations Miscellaneous Total revenues EXPENDITURES Current: Culture and recreation Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balance Fund balance- January 1 Fund balance- December 31 45,000 $ 35,207 $ (9,793) - 57 57 15,000 13,000 (2,000) 20,000 20,000 - 80,000 68,264 (11,736) 98,300 71,518 26,782 (18,300) (3,254) 15,046 18,300 18,300 - $ - 15,046 $ 15,046 22,407 $ 37,453 84 3 CITY OF STILLWATER, MINNESOTA WASHINGTON COUNTY RECYCLING GRANT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 REVENUES Intergovernmental Interest Total revenues EXPENDITURES Current: Public works Excess (deficiency) of revenues over expenditures Fund balance- January 1 Fund balance- December 31 Budgeted Amounts Original and Fi nal $ 34,050 Variance with Final Budget Positive Actual Amounts (Negative) $ 34,192 $ 142 1,248 1,248 34,050 35,440 1,390 34,050 22,371 11,679 $ - 13,069 $ 13,069 140,491 $ 153,560 85 CITY OF STILLWATER, MINNESOTA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUNDS Year Ended December 31, 2010 Balance Balance January 1, December 31, 2010 Additions Deductions 2010 ASSETS Cash and pooled investments - held in escrow $ 282,742 $ 262,043 $ 204,575 $ 340,210 Total Assets $ 282,742 $ 262,043 $ 204,575 $ 340,210 LIABILITIES Accounts payable $ 282,742 $ 262,043 $ 204,575 $ 340,210 Total Liabilities $ 282,742 $ 262,043 $ 204,575 $ 340,210 Other Supplementary Information CITY OF STILLWATER, MINNESOTA SCHEDULE OF SPECIAL REVENUE FUND - LIBRARY DONATIONS FUND BALANCE SHEET December 31, 2010 ASSETS Cash and pooled investments Accrued interest receivable Total Assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Total Liabilities Fund balance: Unreserved reported in: Undesignated: Special Revenue Funds Total fund balance Total liabilities and fund balance Mcluer- Hollis R. Minerva Webster Murdock Library Library Library $ 25,911 $ 63 $ 3,085 90 - 10 26,001 63 3,095 26,001 63 3,095 26,001 63 3,095 $ 26,001 $ 63 $ 3,095 Doctor H. T Total Van Meier M Marvel Rental M Miscellaneous L Library Library O Old Program D Donations D Donations $ 1,387 $ $ 1,018 $ 3,169 $ $ 9,670 $ $ 44,303 4 3 3 11 3 38 1 156 1,391 1 1,021 3,180 9 9,708 4 44,459 1,737 1 1,737 1,738 1,738 1,391 1,021 3,179 7,971 42,721 1,391 1,021 3,179 7,971 42,721 $ 1,391 $ 1,021 $ 3,180 $ 9,708 $ 44,459 89 89 CITY OF STILLWATER, MINNESOTA SCHEDULE OF SPECIAL REVENUE FUND - LIBRARY DONATIONS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2010 Mcluer- Hollis R. Minerva Webster Murdock Library Library Library REVENUES Interest Donations Miscellaneous Total revenues EXPENDITURES Supplies Miscellaneous Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfer (out) Total other financing sources (uses) Net change in fund balance Fund balance, January 1 Fund balance, December 31 $ 225 $ 1 $ 26 26 225 1 1,414 - - - - 1,414 (1,189) 1 26 1 (1,189) 26 27,190 62 3,069 $ 26,001 $ 63 $ 3,095 Doctor H. Van Meier Marvel Library Old Rental Program Miscellaneous Donations Total Library Dona tions $ 12 $ 9 $ 27 $ 81 $ 381 - - - 11,848 11,848 - - 8,267 8,267 12 9 8,294 11,929 20,496 - - - 12,998 14,412 - - 2,910 1,604 4,514 - - 2,910 14,602 18,926 12 9 5,384 (2,673) 1,570 - - (4,656) - (4,656) - - (4,656) - (4,656) 12 9 728 (2,673) (3,086) 1,379 1,012 2,451 10,644 45,807 $ 1,391 $ 1,021 $ 3,179 $ 7,971 $ 42,721 91 CITY OF STILLWATER, MINNESOTA ASSETS Cash and pooled investments Accrued interest receivable Accounts receivable Taxes receivable: Delinquent Due from county Special assessments receivable: Delinquent Deferred Due from County Due from other governments Total Assets SCHEDULE OF DEBT SERVICE FUND BALANCE SHEET December 31, 2010 $755,000 $1,480,000 $1,290,000 $1,445,000 $1,455,000 C.O. C.O. C.O. C.O. C.O. Bonds of Bonds of Bonds of Bonds of Bonds of 2004 -B 2005 -A 2007A 2008A 2009A $ 138,980 $ 268,688 $ 207,868 - $ 241,340 $ 199,203 242 458 321 398 262 5,698 11,409 9,916 10,078 9,338 2,136 4,311 3,743 4,040 3,716 221,848 147,056 284,866 255,856 212,519 LIABILITIES AND FUND BALANCES Liabilities: Deferred revenue 5,698 11,409 9,916 10,078 9,338 Total Liabilities 5,698 11,409 9,916 10,078 9,338 Fund Balance: Reserved for: Debt service 141,358 273,457 211,932 245,778 203,181 Total Fund Balance 141,358 273,457 211,932 245,778 203,181 Total Liabilities and Fund Balance $ 147,056 $ 284,866 $ 221,848 $ 255,856 $ 212,519 92 $3,160,000 $6,400,000 $1,005,000 $1,345,000 $7,840,000 $4,095,000 $4,695,000 C.O. C.O. C.O. C.O. C.O. C.O. Improvement Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of 2005 -B 2006 -A 2009 -B 2003 -A 2002 -A 2009 -D 2004 -A $ 616,814 $ 660,838 $ 148,741 $ 292,829 $ - $ 1,133,952 $ 855,946 1,589 1,180 242 579 - 2,342 2,143 13,696 29,238 7,281 10,654 - 38,850 14,640 5,354 11,128 2,780 3,917 - 14,888 5,769 - - - - - - 12,523 ' - - - - - 402,597 ' - - - - - 169 - - 29,190 - - - 637,453 702,384 188,234 307,979 - 1,190,032 1,293,787 13,696 29,238 7,281 10,654 - 38,850 429,760 13,696 29,238 7,281 10,654 - 38,850 429,760 623,757 673,146 180,953 297,325 - 1,151,182 864,027 623,757 673,146 180,953 297,325 - 1,151,182 864,027 $ 637,453 $ 702,384 $ 188,234 $ 307,979 $ - $ 1,190,032 $ 1,293,787 CITY OF STILLWATER, MINNESOTA 8,011 $ 166,019 $ SCHEDULE OF DEBT SERVICE FUND Accrued interest receivable - BALANCE SHEET (Continued) - 1,648 Accounts receivable December 31, 2010 - - - $5,300,000 $3,435,000 $2,135,000 $2,695,000 TIF TIF Sports Rev Revenue Bonds of Bonds of Bonds of Bonds of 2008 -B 2003 -B 2000 -D 2005 -C ASSETS Cash and pooled investments $ 8,011 $ 166,019 $ - $ 622,672 Accrued interest receivable - - - 1,648 Accounts receivable - - - - Taxes receivable: Delinquent - - - 5,789 Due from county - - - 2,407 Special assessments receivable: Delinquent - - - - Deferred - - - - Due from County - - - - Due from other governments - - - - Total Assets 8,011 166,019 - 632,516 LIABILITIES AND FUND BALANCES Liabilities: Deferred revenue - - - 5,789 Total Liabilities - - - 5,789 Fund Balance: Reserved for: Debt service 8,011 166,019 - 626,727 Total Fund Balance 8,011 166,019 - 626,727 Total Liabilities and Fund Balance $ 8,011 $ 166,019 $ - $ 632,516 94 $1,420,000 Revenue Capital Total Bonds of Program Lease Debt 2009 -C Loans Obligation Service $ - $ - $ 503 $ 5,880,794 - - 1 12,181 - - 42,077 42,077 166,587 64,189 - 12,523 - - 402,597 - 169 - - 29,190 - 42,581 6,610,307 42,077 623,784 42,077 623,784 504 5,986,523 504 5,986,523 $ 42,581 $ 6,610,307 95 CITY OF STILLWATER, MINNESOTA SCHEDULE OF DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE Year Ended December 31, 2010 $755,000 $1,480,000 $1,290,000 $1,445,000 $1,455,000 C.O. C.O. C.O. C.O. C.O. Bonds of Bonds of Bonds of Bonds of Bonds of 2004 -B 2005 -A 2007A 2008A 2009A Revenues: Property taxes $ 106,414 $ 214,761 $ 187,561 $ 205,604 $ 202,332 Special assessments - - - - - Intergovernmental 10 21 18 20 - Interest 731 1,399 1,022 1,237 928 Donations - - - - - Miscellaneous - - - - - Total revenues 107,155 216,181 188,601 206,861 203,260 Expenditures: Debt service: Principal 90,000 190,000 150,000 170,000 155,000 Interest 7,265 21,775 34,781 37,312 39,725 Paying agent fees 431 403 431 425 425 Bond issuance fees - - - - - Other services and charges 153 153 153 153 153 Miscellaneous 83 173 151 167 167 Total expenditures 97,932 212,504 185,516 208,057 195,470 Revenues over (under) expenditures 9,223 3,677 3,085 (1,196) 7,790 Other financing sources (uses): Bond and note proceeds - - - - - Premium issued on debt - - - - - Payment on current refunding - - - - - Transfers in - - - - - Transfers (out) - - - - - Total other financing sources (uses) - - - - - Net change in fund balance 9,223 3,677 3,085 (1,196) 7,790 Fund balance, January 1 132,135 269,780 208,847 246,974 195,391 Fund balance, December 31 $ 141,358 $ 273,457 $ 211,932 $ 245,778 $ 203,181 99 $3,160,000 $6,400,000 $1,005,000 $1,345,000 $7,840,000 $4,095,000 $4,695,000 C.O. C.O. C.O. C.O. C.O. C.O. Improvement Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of 2005 -B 2006 -A 2009 -B 2003 -A 2002 -A 2009 -D 2004 -A $ 260,839 $ 553,443 $ 135,725 $ 191,883 $ 20,406 $ 711,913 $ 288,198 - - - - - - 101,298 25 53 16 19 74 - 27 4,318 3,618 479 1,682 4,302 23,961 6,371 - 5,000 - - - - - - - 29,190 - - - - 265,182 562,114 165,410 193,584 24,782 735,874 395,894 180,000 350,000 105,000 180,000 555,000 - 370,000 86,192 197,580 38,758 8,938 103,979 179,479 98,995 403 431 425 431 - 425 431 153 153 7,433 153 - 153 153 213 446 114 155 616 302 231 266,961 548,610 151,730 189,677 659,595 180,359 469,810 (1,779) 13,504 13,680 3,907 (634,813) 555,515 (73,916) - - - - (4,025,000) - - - - - - 4,025,000 494,115 - - - - - (494,115) (4,025,000) - - - - - (494,115) (3,530,885) - (1,779) 13,504 13,680 3,907 (1,128,928) (2,975,370) (73,916) 625,536 659,642 167,273 293,418 1,128,928 4,126,552 937,943 $ 623,757 $ 673,146 $ 180,953 $ 297,325 $ - $ 1,151,182 $ 864,027 97 CITY OF STILLWATER, MINNESOTA SCHEDULE OF DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE (Continued) Year Ended December 31, 2010 98 $5,300,000 $3,435,000 $2,135,000 $2,695,000 TIF TIF Sports Rev Sports Ctr Bonds of Bonds of Bonds of Bonds of 2008 -B 2003 -B 2000 -D 2005 -C Revenues: Property taxes $ - $ - $ - $ 155,883 Special assessments - - - - Intergovernmental - - _ _ Interest - - 1,879 4,432 Donations - - - - Miscellaneous - - - - Total revenues - - 1,879 160,315 Expenditures: Debt service: Principal 75,000 350,000 100,000 265,000 Interest 209,178 43,548 40,703 59,593 Paying agent fees 425 431 - 402 Bond issuance fees - - - - Other services and charges 153 153 - 153 Miscellaneous - - - 66 Total expenditures 284,756 394,132 140,703 325,214 Revenues over (under) expenditures (284,756) (394,132) (138,824) (164,899) Other financing sources (uses): Bond and note proceeds - - - - Premium issued on debt - - - - Payment on current refunding - - (1,380,000) - Transfers in 284,063 393,979 1,380,000 175,070 Transfers (out) - - (165,460) - Total other financing sources (uses) 284,063 393,979 (165,460) 175,070 Net change in fund balance (693) (153) (304,284) 10,171 Fund balance, January 1 8,704 166,172 304,284 616,556 Fund balance, December 31 $ 8,011 $ 166,019 $ - $ 626,727 98 $1,420,000 Sports Ctr Bonds of Program Loans 4,709 4,709 Capital Interfund Total Lease Adjusting Debt Obligation Entries Service $ - $ - $ 3,234,962 - - 101,298 - - 283 4 - 61,072 - - 5,000 11,927 - 41,117 11,931 - 3,443,732 - 195,000 9,247 - 3,489,247 40,875 - 2,680 - 1,251,356 425 - - - 6,344 153 - - - 9,575 - - - - 2,884 41,453 195,000 11,927 - 4,759,406 (36,744) (195,000) 4 - (1,315,674) (5,405,000) 339,629 195,000 - (6,064,575) 1,222,281 (1,380,000) - - 6,064,575 - (1,040,371) 195,000 - - (4,182,719) (1,077,115) - 4 - (5,498,393) 1,396,281 - 500 - 11,484,916 $ 319,166 $ - $ 504 $ - $ 5,986,523 99 STATISTICAL SECTION This part of the City of Stillwater's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Contents Financial Trends Paae These schedules contain trend information to help the reader understand how the City's financial performance and well -being have changed over time. 102 Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. 112 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 120 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 126 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information is the City's financial report relates to the services the City provides and the activities it performs. 129 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive financial reports for the relevant year. CITY OF STILLWATER, MINNESOTA NET ASSETS BY COMPONENT, LAST EIGHT FISCAL YEARS (accrual basis of accounting) Fiscal Year 2003 2004 2005 Governmental activities Invested in capital assets, net of related debt $ 24,419,145 $ 35,170,281 $ 34,694,981 Restricted 6,897,060 6,976,651 12,474,709 Unrestricted 14,877,531 12,671,927 14,235,251 Total governmental activities net assets $ 46,193,736 $ 54,818,859 $ 61,404,941 Business -type activities Invested in capital assets, net of related debt $ 7,121,590 $ 7,493,098 $ 7,501,561 Unrestricted 2,208,070 2,034,217 2,097,327 Total business -type activities net assets $ 9,329,660 $ 9,527,315 $ 9,598,888 Primary Government Invested in capital assets, net of related debt $ 31,540,735 $ 42,663,379 $ 42,196,542 Restricted 6,897,060 6,976,651 12,474,709 Unrestricted 17,085,601 14,706,144 16,332,578 Total primary government net assets $ 55,523,396 $ 64,346,174 $ 71,003,829 Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003. 102 MOM Fiscal Year 2007 2008 2009 2010 $ 55,618,821 $ 57,606,357 $ 59,480,145 $ 59,625,739 $ 63,897,204 7,117,308 6,357,217 5,838,057 11,550,855 6,218,147 9,920,625 14,842,632 15,998,289 13,759,760 12,433,375 $ 72,656,754 $ 78,806,206 $ 81,316,491 $ 84,936,354 $ 82,548,726 $ 7,410,579 $ 7,140,786 $ 7,068,527 $ 7,155,514 $ 13,329,996 2,344,107 2,488,176 2,492,854 2,235,823 2,131,624 $ 9,754,686 $ 9,628,962 $ 9,561,381 $ 9,391,337 $ 15,461,620 $ 63,029,400 $ 64,747,143 $ 66,548,672 $ 66,781,253 $ 77,227,200 7,117,308 6,357,217 5,838,057 11,550,855 6,218,147 12,264,732 17,330,808 18,491,143 15,995,583 14,564,999 $ 82,411,440 $ 88,435,168 $ 90,877,872 $ 94,327,691 $ 98,010,346 103 CITY OF STILLWATER, MINNESOTA CHANGES IN NET ASSETS, LAST EIGHT FISCAL YEARS (accrual basis of accounting) Fiscal Year Expenses Governmental activities: General government Public Safety Public Works Culture and recreation Economic development Interest on long -term debt Total governmental activities expenses Business -type activities: Sanitary Sewer Storm Sewer Signs & Lighting Parking Total business -type activities expenses Total primary government expenses Program Revenues Governmental activities: Charges for services: General government Public Safety Public Works Culture and recreation Economic development Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Sanitary Sewer Storm Sewer Signs & Lighting Parking Capital grants and contributions Total business -type activities program revenues Total primary government program revenues Net Governmental activities Business -type activities Total primary government net expense 2003 2004 2005 $ 2,369,563 3,258,016 1,877,155 3,327,104 1,241,398 1,317,978 13,391,214 1,834,194 114,598 102,532 162,518 2,213,842 $ 15,605,056 $ 302,714 $ 354,642 $ 409,331 1,371,613 1,262,588 1,614,188 207,377 918,593 24,273 1,328,294 1,296,522 1,410,541 500,574 582,921 - 924,471 837,778 1,848,733 2,501,157 5,888,403 4,380,968 7,136,200 11,141,447 9,688,034 $ 2,437,293 3,583,761 2,124, 007 3,182, 802 543,520 1,333,700 13,205,083 1,793,299 147,019 311,472 172,822 2,424,612 $ 15,629,695 $ 2,633,106 3,875,718 2,297,706 3,541,296 1,905,474 1,384,027 15,637,327 1,927,353 202,178 312,366 178,395 2,620,292 $ 18,257,619 1,622,262 1,707,382 1,797,054 199,067 206,805 210,708 172,500 349,980 357,612 266,063 251,713 244,079 112,400 317,078 23,600 2,372,292 2,832,958 2,633,053 $ 9,508,492 $ 13,974,405 $ 12,321,087 $ (6,255,014) 158,450 $ (6,096,564) $ (2,063,636) 408,346 $ (1,655,290) $ (5,949,293) 12,761 $ (5,936,532) 104 $ 413,437 $ 350,222 Fiscal Year $ 448,203 $ 282,194 2006 2007 2008 2009 2010 24,985 57,164 122,828 143,959 596,622 1,344,197 1,751,760 1,815,998 1,807,220 $ 2,737,258 $ 3,051,357 $ 3,309,748 $ 2,885,730 $ 2,948,354 4,074,639 4,133,983 4,626,826 4,430,687 4,405,907 2,536,936 3,824,872 2,603,563 2,796,633 2,739,684 3,541,674 3,857,763 4,388,996 4,317,878 4,405,463 519,794 1,001,823 1,062,492 412,598 969,992 1,270,316 1,028,231 1,213,753 1,381,994 1,117,505 14,680,617 16,898,029 17,205,378 16,225,520 16,586,905 1,953,410 2,013,829 2,164,659 2,183,972 2,290,662 215,746 338,105 424,929 507,991 410,780 t 335,153 353,120 366,848 370,858 397,014 191,548 190,463 220,412 200,143 260,465 2,695,857 2,895,517 3,176,848 3,262,964 3,358,921 $ 17,376,474 $ 19,793,546 $ 20,382,226 $ 19,488,484 $ 19,945,826 $ 413,437 $ 350,222 $ 325,543 $ 448,203 $ 282,194 1,011,409 1,201,525 1,144,235 1,036,219 931,701 24,985 57,164 122,828 143,959 596,622 1,344,197 1,751,760 1,815,998 1,807,220 1,660,390 20,992 196,312 77,147 2,625 397 2,180,580 512,355 459,720 455,328 475,432 7,482,634 4,535,386 1,178,987 1,173,898 2,676,036 12,478,234 8,604,724 5,124,458 5,067,452 6,622,772 1,912,274 1,993,928 2,017,151 1,905,076 1,912,336 215,911 233,551 496,048 491,514 491,292 365,010 369,325 370,620 372,524 405,802 272,056 252,456 182,542 178,588 233,004 2,765,251 2,849,260 3,066,361 2,947,702 3,042,434 $ 15,243,485 $ 11,453,984 $ 8,190,819 $ 8,015,154 $ 9,665,206 $ (2,202,383) $ (8,293,305) $ (12,080,920) $ (11,158,068) $ (9,964,133) 69,394 (46,257) (110,487) (315,262) (316,487) $ (2,132,989) $ (8,339,562) $ (12,191,407) $ (11,473,330) $ (10,280,620) 105 CITY OF STILLWATER, MINNESOTA CHANGES IN NET ASSETS, CONTINUED LAST EIGHT FISCAL YEARS (accrual basis of accounting) Fiscal Year 2003 2004 General Revenues and Other Changes in Net Assets Governmental activities: Taxes Property taxes $ 6,603,957 Tax increment 1,802,514 Lodging tax - Franchise taxes 33,556 Unrestricted grants and contributions 687,610 Unrestricted investment earnings 276,842 Gain on sale of capital assets 1,220,831 Extraordinary item 2,199,500 Transfers 30,000 Total governmental activities 12,854,810 Business -type activities: Unrestricted investment earnings 48,345 Transfers (30,000) Total business -type activities .18,345 Total primary government $ 12,873,155 Change in Net Assets Governmental activities $ 6,599,796 Business -type activities 176,795 Total primary government $ 6,776,591 $ 7,313,791 1,800,549 398,121 672,611 388,619 21,592 93,476 10,688,759 54,309 (265,000) (210,691) $ 10,478,068 $ 8,625,123 197,655 $ 8,822,778 Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003. 106 2005 $ 8,899,482 1,634,454 404,448 971,765 614,523 10,703 12,535,375 58,812 58,812 $ 12,594,187 $ 6,586,082 71,573 $ 6,657,655 Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003. 106 Fiscal Year 2006 2007 2008 2009 2010 $ 9,053,389 $ 9,441,086 $ 9,816,859 $ 10,228,046 $ 9,709,376 1,838,633 2,680,808 2,937,029 3,102,744 3,075,912 - - 127,867 137,387 139,026 415,143 423,938 426,688 426,754 425,617 927,712 737,949 243,845 405,885 270,671 1,198,618 947,685 970,959 491,432 297,177 - 14,422 - 76,311 8,572 20,701 196,869 67,958 (90,628) (6,349,846) 13,454,196 14,442,757 14,591,205 14,777,931 7,576,505 107,105 117,402 106,539 54,590 36,924 (20,701) (196,869) (67,958) 90,628 6,349,846 86,404 (79,467) 42,906 145,218 6,386,770 $ 13,540,600 $ 14,363,290 $ 14,634,111 $ 14,923,149 $ 13,963,275 $ 11,251,813 $ 6,149,452 $ 2,510,285 $ 3,619,863 $ (2,387,628) 155,798 (125,724) (67,581) (170,044) 6,070,283 $ 11,407,611 $ 6,023,728 $ 2,442,704 $ 3,449,819 $ 3,682,655 107 CITY OF STILLWATER, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) 108 Fiscal Year 2001 2002 2003 2004 General Fund Reserved $ 18,425 $ 66,183 $ 80,725 $ 70,457 Unreserved 3,003,499 3,026,319 3,011,777 3,289,295 Total general fund $ 3,021,924 $ 3,092,502 $ 3,092,502 $ 3,359,752 All Other Governmental Funds Reserved reported in: Special revenue funds $ - $ - $ 300,347 $ 1,574,674 Debt service funds 5,289,330 6,420,104 5,859,923 5,970,718 Unreserved reported in: Special revenue funds 934,790 1,385,336 1,586,808 1,601,377 Capital project funds 6,241,281 7,644,501 8,428,972 12,593,425 Total all other governmental funds $ 12,465,401 $ 15,449,941 $ 16,176,050 $ 21,740,194 108 2005 200 Fiscal Year 2007 2008 2009 2010 $ 85,527 $ 80,376 $ 87,502 $ 95,577 $ 101,597 $ 52,728 3,584,036 3,694,636 3,682,955 3,450,524 4,119,597 4,098,208 $ 3,669,563 $ 3,775,012 $ 3,770,457 $ 3,546,101 $ 4,221,194 $ 4,150,936 $ 8,499 $ 9,723 $ 12,010 $ 52,326 $ 12,014 $ 14,017 11,374,340 6,359,652 5,739,233 5,610,318 11,484,916 5,986,523 1,908,283 1,890,093 2,217,335 2,256,907 2,361,837 2,250,346 13,725,734 4,260,630 12,164,582 17,951,334 14,111,439 14,587,974 $ 27,016,856 $ 12,520,098 $ 20,133,160 $ 25,870,885 $ 27,970,206 $ 22,838,860 109 CITY OF STILLWATER, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Expenditures General government 2,274,384 Fiscal Year 2,109,618 2,110,845 2001 2002 2003 2004 Revenues Public works 1,625,908 1,537,082 1,460,320 Taxes: Culture and recreation 2,220,754 2,296,612 2,657,482 Property taxes $ 4,710,537 $ 5,413,887 $ 6,132,434 $ 6,817,566 Tax increment 1,900,529 1,298,683 1,742,100 1,760,946 Lodging tax - - - - Franchise taxes - - 33,556 398,121 Licenses and permits 652,644 748,800 691,822 647,908 Special assessments 866,049 1,169,295 954,720 1,337,233 Intergovernmental 3,275,668 2,797,207 2,605,191 2,818,213 Charges for services 2,165,434 2,409,358 3,212,248 4,171,166 Fines and forfeits 135,800 116,793 133,379 129,275 Interest 744,109 444,082 337,695 452,721 Donations 133,349 548,987 622,680 1,473,903 Miscellaneous 776,896 1,372,374 327,114 1,073,143 Total revenues 15,361,015 16,319,466 16,792,939 21,080,195 Expenditures General government 2,274,384 2,689,417 2,109,618 2,110,845 Public safety 3,124,762 3,054,775 3,061,201 3,240,082 Public works 1,625,908 1,537,082 1,460,320 1,380,505 Culture and recreation 2,220,754 2,296,612 2,657,482 2,454,138 Economic development 232,789 305,985 1,241,398 622,226 Capital outlay 3,783,195 8,102,534 5,554,558 7,291,363 Debt Service - - 2,199,500 - Principal 3,813,335 2,998,333 3,324,209 3,553,357 Interest 1,499,588 1,400,311 1,399,137 1,327,848 Other 41,890 63,191 99,543 108,669 Total expenditures 18,616,605 22,448,240 20,907,466 22,089,033 Excess (deficiency) of revenues 31.4% 33.1% over expenditures (3,255,590) (6,128,774) (4,114,527) (1,008,838) Other Financing Sources (Uses) Proceeds from borrowing - 9,340,268 5,000,053 5,545,248 Transfers in 4,726,733 4,094,539 3,600,065 4,587,456 Transfer (out) (4,726,733) (4,244,539) (3,570,065) (4,322,456) Capital lease - - - - Sale of property 115,834 23,409 926,298 1,029,984 Payment on refunded debt (2,540,000) - (3,345,000) - Insurance settlement - - 2,199,500 - Total other financing sources (uses) (2,424,166) 9,213,677 4,810,851 6,840,232 Net change in fund balances $ (5,679,756) $ 3,084,903 $ 696,324 $ 5,831,394 Debt service as a percentage of noncapital expenditures 36.1% 31.1% 31.4% 33.1% 110 Fiscal Year 2005 2006 2007 2008 2009 2010 $ 7,940,517 $ 8,630,803 $ 8,996,387 $ 9,535,481 $ 9,646,261 $ 9,689,084 1,623,139 1,798,905 2,655,638 2,870,258 3,046,960 3,033,542 - - - 127,867 137,387 139,026 404,448 415,143 423,938 426,688 426,754 425,617 942,302 469,971 603,556 552,687 435,128 406,553 1,066,000 953,031 904,319 899,701 882,732 1,144,498 4,235,289 3,701,257 1,802,669 935,220 1,450,439 1,338,010 2,484,394 2,512,666 5,217,577 2,889,732 2,787,660 3,845,833 127,690 151,470 138,197 152,192 226,852 140,550 614,334 1,182,820 940,429 958,702 460,295 264,358 1,348,787 961,326 576,861 283,419 195,183 102,978 466,731 617,941 232,623 250,503 336,651 332,728 21,253,631 21,395,333 22,492,194 19,882,450 20,032,302 20,862,777 2,336,422 2,447,747 2,718,798 2,869,798 2,480,618 2,622,089 3,604,240 3,810,827 3,802,242 4,123,587 3,964,424 3,848,968 1,669,809 1,493,693 1,625,512 1,482,455 1,285,715 1,401,869 3,002,849 2,785,335 2,912,305 3,242,022 3,193,529 3,096,534 1,811,330 733,899 1,094,296 1,096,128 456,996 996,174 6,077,211 15,310,605 4,239,574 3,512,082 8,417,419 4,001,559 3,898,534 3,601,000 3,835,000 3,719,000 3,385,000 3,489,247 1,345,237 1,297,146 1,181,782 1,111,621 1,286,753 1,251,356 186,869 101,588 44,292 173,080 188,294 18,956 23,932,501 31,581,840 21,453,801 21,329,773 24,658,748 20,726,752 (2,678,870) (10,186,507) 1,038,393 (1,447,323) (4,626,446) 136,025 7,607,250 6,434,171 1,297,256 6,821,202 8,189,631 - 4,828,991 4,406,945 4,348,446 4,322,239 4,039,187 3,342,910 (4,828,991) (4,356,945) (4,132,342) (4,259,739) (3,951,815) (3,342,910) - - - - 51,324 - 658,093 39,404 33,677 76,690 122,533 67,371 - (5,705,000) - - (1,050,000) (5,405,000) 8,265,343 818,575 1,547,037 6,960,392 7,400,860 (5,337,629) $ 5,586,473 $ (9,367,932) $ 2,585,430 $ 5,513,069 $ 2,774,414 $ (5,201,604) 30.4% 30.6% 29.3% 28.1% 29.6% 28.5% 111 CITY OF STILLWATER, MINNESOTA Payable Year ASSESSED AND ESTIMATED ACTUAL VALUE OF PROPERTY, LAST TEN FISCAL YEARS Real Property Estimated Actual Taxable Market Net Tax Value Capacity (1) Personal Property Estimated Actual Taxable Market Net Tax Value Capacity 2001 $ 885,854,000 $ 14,394,149 $ 8,538,100 $ 290,045 2002 1,026,719,800 12,006,624 9,026,800 180,411 2003 1,207,033,300 14,082,742 9,384,700 187,569 2004 1,371,613,600 15,834,619 9,483,000 189,535 2005 1,585,050,100 18,150,417 9,947,000 198,815 2006 1,792,193,300 20,190,551 10,295,700 205,778 2007 2,020,474,300 22,981,471 10,620,800 212,276 2008 2,112,062,300 24,045,939 10,158,900 203,038 2009 2,121,367,300 24,160,646 9,929,400 198,448 2010 2,061,231,600 23,517,761 9,888,400 197,768 Source: Washington County, Minnesota Assessors' Office Notes: (1) The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula to the estimated market value of the property. 112 r Total Estimated Actual Taxable Market Value $ 894, 392,100 1,035,746,600 1,216,418,000 1,381,096,600 1, 594, 997,100 1,802,489,000 2,031,095,100 2,122,221,200 2,145, 527, 946 2,084,749,361 Net Tax Capacity $ 14,684,194 12,187,035 14,270,311 16, 024,154 18,349,232 20,396,329 23,193,747 24,248,977 24,359,094 23,715,529 Total Direct Tax Rate 35.697 53.417 52.761 51.951 51.629 49.243 46.498 48.186 47.930 49.493 113 Net Tax Capacity as a Percentage of Estimated Actual Market Value 1.64 1.18 1.17 1.16 1.15 1.13 1.14 1.14 1.14 1.14 CITY OF STILLWATER, MINNESOTA PROPERTY TAX RATES - PER $1,000 OF ASSESSED TAX CAPACITY VALUE (1) DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS City Direct Rates Payable Year Overlapping Rates County Debt Operating Service Total Tax Tax Tax Capacity Capacity Capacity Rate Rate Rate 2001 Debt 12.163 Operating Service Total Tax Tax Tax Capacity Capacity Capacity Rate Rate Rate Overlapping Rates County Debt Operating Service Total Tax Tax Tax Capacity Capacity Capacity Rate Rate Rate 2001 23.534 12.163 35.697 20.415 3.582 23.997 2002 36.372 17.045 53.417 27.215 4.542 31.757 2003 34.044 18.717 52.761 26.570 3.726 30.296 2004 33.559 18.392 51.951 25.072 3.521 28.593 2005 34.331 17.298 51.629 23.098 .3.225 26.323 2006 30.924 18.319 49.243 21.780 2.997 24.777 2007 30.228 16.270 46.498 20.803 2.732 23.535 2008 32.755 15.431 48.186 20.961 2.747 23.708 2009 32.333 15.597 47.930 21.140 2.973 24.113 2010 32.921 16.572 49.493 22.347 3.217 25.564 Source: Washington County, Minnesota Auditor's Office. Notes: (1) Property tax rates (tax capacity rates) are determined by dividing the total tax levy by the tax capacity (assessed value). The tax capacity is calculated by applying a statutory formula to the estimated market value of the property. 114 Overlapping Rates Total Tax Capacity 116.934 118.298 114.785 107.580 104.601 100.507 97.180 97.456 97.374 102.836 115 School Other Debt Operating Service Total Total Tax Tax Tax Tax Capacity Capacity Capacity Capacity Rate Rate Rate Rate 37.985 12.702 50.687 6.553 13.254 15.223 28.477 4.647 11.689 14.975 26.664 5.064 7.957 10.872 18.829 8.207 7.824 11.644 19.468 7.181 8.271 11.200 19.471 7.016 9.338 9.666 19.004 8.143 7.983 9.421 17.404 8.158 8.881 8.833 17.714 7.617 10.367 9.367 19.734 8.045 Total Tax Capacity 116.934 118.298 114.785 107.580 104.601 100.507 97.180 97.456 97.374 102.836 115 CITY OF STILLWATER, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS, LAST TEN FISCAL YEARS Notes: (1) Beginning with payable year 2002, Market Value Homestead Credit (MVHC) is included in the operating levy. MVHC is a State run program that is designed to provide state -paid property tax relief to ownerss of certain qualified homestead property. Qualifying homeowners do not have to apply for this credit - -it is autmatically applied to the owner's property taxes. The State then reimbusres the City for the value of the credit. (2) One measure to assist with the State's current budget deficit, the Governor "unalloted" a portion of some cities MVHC . This amount represents the City of Stillwater's share of the unallotment. 116 Collected within the Taxes Levied for the Fiscal Year Fiscal Year of Levy Current Percentage Collections Fiscal Operating Debt Total Tax Tax of in Subsequent Year Tax Levy Tax Levy Levy (1) Collection Levy Years 2001 $ 3,098,928 $ 1,601,657 $ 4,700,585 $ 4,623,978 98.4 $ 53,909 2002 4,034,297 1,890,540 5,924,837 5,838,513 98.5 80,427 2003 4,261,183 2,342,774 6,603,957 6,500,791 98.4 96,349 2004 4,713,214 2,583,083 7,296,297 7,185,282 98.5 105,860 2005 5,579,500 2,811,379 8,390,879 8,224,377 98.0 130,421 2006 5,580,145 3,305,610 8,885,755 8,716,513 98.1 158,718 2007 6,102,192 3,284,439 9,386,631 9,195,239 98.0 147,873 2008 6,775,809 3,192,158 9,967,967 9,532,929 95.6 212,857 2009 6,813,230 3,286,539 10,099,769 9,768,614 96.7 207,333 2010 6,943,172 3,215,195 10,158,367 9,466,734 93.2 - Notes: (1) Beginning with payable year 2002, Market Value Homestead Credit (MVHC) is included in the operating levy. MVHC is a State run program that is designed to provide state -paid property tax relief to ownerss of certain qualified homestead property. Qualifying homeowners do not have to apply for this credit - -it is autmatically applied to the owner's property taxes. The State then reimbusres the City for the value of the credit. (2) One measure to assist with the State's current budget deficit, the Governor "unalloted" a portion of some cities MVHC . This amount represents the City of Stillwater's share of the unallotment. 116 Total Collections to Date Total Percentage Abatements MVHC Outstanding Percentage Tax of to Total Collection Delinquent of Levy Collection Levy Tax Levy Unallotment (2) Taxes Outstanding $ 4,677,887 99.5 $ 22,041 $ - $ 657 0.0 % 5,918,940 99.9 5,355 - 542 0.0 6,597,140 99.9 6,817 - - 0.0 7,291,142 99.9 5,155 - - 0.0 8,354,798 99.6 33,634 - 2,447 0.0 8,875,231 99.9 4,164 - 6,360 0.1 9,343,112 99.5 20,325 - 23,194 0.2 9,745,786 97.8 9,808 176,229 36,144 0.4 9,975,947 98.8 10,800 - 113,022 1.1 9,466,734 93.2 7,433 372,647 311,553 3.1 117 CITY OF STILLWATER, MINNESOTA PRINCIPAL TAXPAYERS, CURRENT YEAR AND NINE YEARS AGO Source: Washington County, Minnesota Auditor's Office 118 2010 2001 Percentage Percentage of Total of Total Net Tax City Tax Net Tax City Tax Taxpayer Capacity Rank Capacity Capacity Rank Capacity Stillwater Health System $ 259,138 1 1.090 % $ 86,590 9 0.590 % Xcel Energy 197,568 2 0.830 286,110 2 1.950 Dayton Hudson Corporation 1,700,192 3 7.170 167,725 4 1.140 Supervalu Holdings 163,334 4 0.690 287,489 1 1.960 Mikden of Stillwater LLC 121,468 5 0.510 - 0.000 Diasorin Inc 119,758 6 0.500 - 0.000 Gen3 LLC 113,868 7 0.480 - 0.000 Four Star Land Development 146,129 8 0.620 - 0.000 Southmetro Centers 108,492 9 0.460 - 0.000 Stillwater MP 102,810 10 0.430 - 0.000 Nirosaid - 0.000 261,513 3 1.780 Minnesota Minning & Mfg (3M) - 0.000 163,506 5 1.110 Anderson Corporation - 0.000 107,756 6 0.730 Divison Place II Associates - 0.000 99,092 7 0.670 Urban Associates /Stillwater - 0.000 86,220 8 0.590 Mainstream Development Partnership - 0.000 83,246 10 0.570 Total $ 3,032,757 12.780 % $ 1,629,247 9.930 % Source: Washington County, Minnesota Auditor's Office 118 THIS PAGE IS INTENTIONALLY LEFT BLANK CITY OF STILLWATER, MINNESOTA RATIO OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities General Improvement Revenue Tax Fiscal Government Bonds Bonds Increment Capital Year Bonds (1) (2) (1) (3) (1) (4) Bonds (1) (5) Lease 2001 $ 8,261,665 $ 3,990,000 $ 5,955,000 $ 7,060,000 $ - 2002 15,258,332 2,960,000 5,670,000 6,330,000 650,268 2003 15,890,000 1,995,000 5,375,000 5,635,000 436,891 2004 15,480,000 6,000,000 5,060,000 4,745,000 223,534 2005 18,625,000 5,510,000 7,425,000 3,840,000 - 2006 20,499,000 4,720,000 4,450,000 3,020,000 - 2007 19,844,000 4,225,000 4,100,000 2,170,000 - 2008 19,170,000 3,485,000 3,765,000 7,140,000 - 2009 22,755,000 3,120,000 4,835,000 6,585,000 51,324 2010 16,605,000 2,750,000 3,090,000 6,160,000 42,077 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) General obligation debt which is backed by the full faith, credit, and taxing power of the City. (2) General government bonds are to be repaid from general tax levies. (3) Improvement bonds are expected to be repaid primarily from the special assessments to benefitted properties. (4) Revenue bonds are expected to be paid from revenues generated from the project. (5) Tax increment bonds are to be paid from the pledged tax increment revenues. (6) Information not available is labeled N /A. (7) See the Demographic and Economic Statistics schedule on page 126 for personal income and population data. (8) Information not available is labeled N /A. 120 Other Total Percentage Long -Term Primary of Personal Per Debt Government Income (6) (7) (8) Capita (7) (8) $ 1,045,000 $ 26,311,665 22.18 $ 1,688 1,785,000 32,653,600 18.73 2,027 1,632,500 30,964,391 21.14 1,857 1,437,500 32,946,034 22.14 1,914 1,242,500 36,642,500 20.45 2,102 1,047,500 33,736,500 23.75 1,879 852,500 31,191,500 27.50 1,722 657,500 34,217,500 25.51 1,906 462,500 37,808,824 N/A 2,073 267,500 28,914,577 N/A 1,587 121 CITY OF STILLWATER, MINNESOTA RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION DEBT PER CAPITA LAST TEN FISCAL YEARS Notes: (1) Amount does not include debt to be paid from special assessments, tax increments or other revenues. (2) Amount available for repayment of general obligation bonds. (3) See Assessed and Estimated Actual Value of Property schedule on page 112 for property value data. (4) See the Demographic and Economic Statistics schedule on page 126 for population data. 122 Net General Bonded Debt Outstanding Gross Less Debt Net Percentage of Fiscal Bonded Service Bonded Estimated Per Year Debt (1) Fund (2) Debt Market Value (3) Capita (4) 2001 $ 8,261,665 $ 1,543,618 $ 6,718,047 0.8 $ 430.95 2002 15,258,332 1,699,247 13,559,085 1.3 841.71 2003 15,890,000 2,297,197 13,592,803 1.1 815.26 2004 15,480,000 2,485,953 12,994,047 0.9 754.81 2005 18,625,000 5,391,000 13,234,000 0.8 759.31 2006 20,499,000 3,227,678 17,271,322 1.0 961.71 2007 19,844,000 3,431,093 16,412,907 0.8 906.19 2008 19,170,000 3,607,395 15,562,605 0.7 866.85 2009 22,755,000 8,054,476 14,700,524 0.7 806.17 2010 16,605,000 4,002,069 12,602,931 0.6 691.52 Notes: (1) Amount does not include debt to be paid from special assessments, tax increments or other revenues. (2) Amount available for repayment of general obligation bonds. (3) See Assessed and Estimated Actual Value of Property schedule on page 112 for property value data. (4) See the Demographic and Economic Statistics schedule on page 126 for population data. 122 CITY OF STILLWATER, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2010 Debt Outstanding Direct: City of Stillwater Overlapping: Washington County School Districts: #834 - Stillwater Washington County HRA Metropolitan Council /Regional Transit Total Overlapping Total Direct and Overlapping Bonded Debt: $ 16,605,000 113,525,000 (1) 69,635,000 (1) 45,705,000 (1) 255,290,000 (1) Percentage Applicable to City (2) Net Amount Applicable to City 100% $ 16,605,000 7.1% 8,060,275 22.6% 15,737,510 6.6% 3,016,530 6.6% 16,849,140 43,663,455 $ 60,268,455 Notes: (1) Information obtained from Washington County, Minnesota Auditor's office. (2) The percentage of overlapping debt applicable is estimated using tax capacity values. Applicable percentages were estimated by determining the portion of each entity's tax capacity that is within the City's boundaries and dividing it by that entity's total tax capacity. 123 CITY OF STILLWATER, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN LAST TEN FISCAL YEARS Fiscal Year Estimated Market Value (1) Debt limitation (2) Debt applicable to limit: Total bonded debt Less: Improvement bonds Less: Revenue bonds Less: TIF bonds Total debt applicable to limitation Legal debt margin Total debt applicable to the limit as a percentage of debt limit 2001 2002 2003 2004 $ 894,392,100 $ 1,035,746,600 $ 1,216,418,000 $ 1,381,096,600 17,887,842 20,714,932 24,328,360 27,621,932 25,266,665 30,218,332 28,895,000 31,285,000 (3,990,000) (2,960,000) (1,995,000) (6,000,000) (5,955,000) (5,670,000) (5,375,000) (5,060,000) (7,060,000) (6,330,000) (5,635,000) (4,745,000) 8,261,665 15,258,332 15,890,000 15,480,000 $ 9,626,177 $ 5,456,600 $ 8,438,360 $ 12,141,932 46.19% 73.66 % 65.31% 56.04% Note: (1) Information obtained from Washington County, Minnesota Assessor's Office (2) Under Minnesota State Statues , the City of Stillwater's net debt cannot exceed 2 percent of the estimated market value. Beginning in 2008, the percentage that the debt limit can not exceed the estimated market value changed from 2% to 3 %. 124 125 Fiscal Year 2005 2006 2007 2008 2009 2010 $ 1,657,407,200 $ 1,844,459,300 $ 2,050,383,000 $ 2,152,996,700 $ 2,152,848,700 $ 2,071,120,000 33,148,144 36,889,186 41,007,660 64,589,901 64,585,461 62,133,600 35,400,000 32,689,000 30,339,000 33,560,000 37,295,000 28,605,000 (5,510,000) (4,720,000) (4,225,000) (3,485,000) (3,120,000) (2,750,000) (7,425,000) (4,450,000) (4,100,000) (3,765,000) (4,835,000) (3,090,000) (3,840,000) (3,020,000) (2,170,000) (7,140,000) (6,585,000) (6,160,000) 18,625,000 20,499,000 19,844,000 19,170,000 22,755,000 16,605,000 $ 14,523,144 $ 16,390,186 $ 21,163,660 $ 45,419,901 $ 41,830,461 $ 45,528,600 56.19% 55.57% 48.39% 29.68% 35.23% 26.72% 125 CITY OF STILLWATER, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Notes: (1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census. (2) Thousand of dollars. (3) Information from State Demographers Office (Bureau of Economic Analysis Report). (4) Information from Jobs Training Research Statistics Department. (5) Information not available is labeled N /A. (6) The estimated personal income for the City of Stillwater is calculated by taking the per capita income of Washington County and multiplying it by the City's population. The per capita personal income used is for that of Washington County, in which the City resides, the smallest region applicable to the City that this information is available for. 126 City of Stillwater Washington County Personal Personal Per Capita Unemployment Fiscal Population Income Income Income Percentage Year (1) (2) (6) (2) (3) (5) (3) (5) (4) 2001 15,589 $ 583,683 $ 7,761,302 $ 37,442 3.1 2002 16,109 611,691 7,988,565 37,972 3.9 2003 16,673 654,599 8,401,215 39,261 4.2 2004 17,215 729,279 8,938,071 42,363 4.0 2005 17,429 749,273 9,473,739 42,990 3.4 2006 17,959 801,295 10,177,500 44,618 4.6 2007 18,112 857,621 11,037,708 47,351 4.7 2008 17,953 872,821 11,169,204 48,617 6.3 2009 18,235 N/A N/A N/A 6.9 2010 18,225 N/A N/A N/A 6.3 Notes: (1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census. (2) Thousand of dollars. (3) Information from State Demographers Office (Bureau of Economic Analysis Report). (4) Information from Jobs Training Research Statistics Department. (5) Information not available is labeled N /A. (6) The estimated personal income for the City of Stillwater is calculated by taking the per capita income of Washington County and multiplying it by the City's population. The per capita personal income used is for that of Washington County, in which the City resides, the smallest region applicable to the City that this information is available for. 126 CITY OF STILLWATER, MINNESOTA PRINCIPAL EMPLOYERS, CURRENT YEAR AND NINE YEARS AGO Source: Minnesota Department of Employment and Economic Development Notes: Information for 2001 is not available. 127 2010 Percentage of Total City Employer Employees Rank Employment County of Washington 1,084 1 26.3% Stillwater Public Schools 1,000 2 24.3% Lakeview Memorial Hospital 721 3 17.5% St Croix Boat & Packet 250 4 0.0% Diasorin 250 5 6.1% Cub Foods 200 6 4.9% Moderinistic, Inc 200 7 4.9% Target 197 8 4.8% City of Stillwater 141 9 3.4% Stillwater Medical Group 75 10 1.8% Total $ 4,118 94.0% Source: Minnesota Department of Employment and Economic Development Notes: Information for 2001 is not available. 127 CITY OF STILLWATER, MINNESOTA FULL TIME EQUIVALENTS CITY GOVERNMENT EMPLOYEES BY FUNCTION /PROGRAM LAST TEN FISCAL YEARS FUNCTION /PROGRAM 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 General Government MIS 1.00 1.00 1.00 1.00 1.00 1.00 1.80 1.80 1.80 1.80 Finance 4.00 4.00 3.50 3.50 4.50 4.50 4.50 3.50 3.50 3.50 Administration 5.00 5.00 5.00 4.90 4.90 4.90 4.90 3.90 3.90 3.45 Legal /City Attorney 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Plant/City Hall 1.00 1.00 1.00 1.00 1.00 1.00 0.00 0.00 0.00 0.00 Community Development 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Public Safety Police 24.50 24.50 24.50 24.50 25.50 25.50 25.50 25.50 22.75 22.75 Fire 8.00 8.50 8.50 8.50 9.50 9.50 9.50 9.50 8.25 8.25 Inspections 3.50 3.50 3.50 3.50 3.50 3.50 2.50 2.50 2.50 2.50 Public Works Engineering 4.50 4.50 4.25 4.10 4.10 4.10 4.10 3.85 3.35 3.35 Streets 10.00 8.00 10.00 9.55 9.55 9.55 9.55 7.00 6.75 6.75 Shop 1.50 1.50 1.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Culture & Recreations Library 9.00 9.25 9.25 8.50 9.75 11.00 11.20 10.45 10.95 11.20 Parks 7.50 7.50 8.50 6.50 7.50 7.50 7.50 7.50 7.25 7.25 Sanitary Sewer 3.50 3.00 3.50 3.95 3.95 3.95 3.95 3.95 3.95 3.95 Storm Sewer 0.50 0.50 0.75 1.15 1.15 1.15 1.15 2.95 2.95 2.95 Signs & Lighting 0.00 0.00 0.00 1.25 1.25 1.25 1.25 1.25 1.25 1.25 Parking 1.00 1.00 1.00 1.10 1.10 1.10 1.10 1.10 1.10 1.05 Total 88.00 86.25 89.25 86.50 91.75 93.00 92.00 88.25 83.75 83.50 Source: City Finance Department 128 CITY OF STILLWATER, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM LAST TEN FISCAL YEARS Function /Program 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Collection System (miles) 83.25 83.54 84.16 86.00 86.22 86.78 87.65 87.65 87.65 87.85 Public Safety 5,403 5,496 5,393 5,813 5,816 5,889 6,130 5,930 5,971 6,289 Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 6 6 6 7 7 9 9 9 9 10 Fire 9 9 9 9 9 9 9 9 9 9 Stations 1 1 1 1 1 1 1 1 1 1 Fire Trucks 8 8 8 8 8 8 9 10 10 12 Public Works Lights 1,340 1,360 1,306 1,360 2,450 2,450 1,415 1,356 1,356 1,356 Vehicles N/A N/A N/A 37 32 29 29 30 30 30 Streets (miles) 82.45 83.07 83.76 84.62 84.70 84.82 89.70 89.70 89.70 89.70 Culture & Recreation St Croix Valley Recreation Center Sheets of Ice 3 3 3 3 3 3 3 3 3 3 Field House 1 1 1 1 1 1 1 1 1 1 Library Building 1 1 1 1 1 1 1 1 1 1 Parks Parks N/A N/A N/A N/A 32 32 34 34 34 34 Internal Trails N/A N/A N/A N/A 11 11 14.8 19 19.2 19.2 Park Acres 477 516 516 516 540 570 570 576 576 576 Park Shelters 19 19 19 19 22 23 23 30 30 30 Basketball Courts 4 4 4 4 6 6 6 5 5 5 Boat Launches 1 1 1 1 1 1 1 1 1 1 Fishing Pier 1 1 1 1 1 1 1 1 1 1 Horseshoe Courts 11 11 11 11 11 11 11 11 11 11 Skating Rinks 10 9 9 9 7 7 7 8 9 12 Soccer Fields 3 3 3 3 5 6 6 7 7 7 Softball Fields 8 8 8 8 10 10 11 13 13 12 Swimming Beach 1 1 1 1 1 1 1 1 1 1 Tennis Courts 9 9 12 12 12 12 12 12 12 11 Volleyball Courts 4 5 6 6 5 5 5 4 4 4 Sanitary Sewer Collection System (miles) 83.25 83.54 84.16 86.00 86.22 86.78 87.65 87.65 87.65 87.85 Sewer Connections 5,403 5,496 5,393 5,813 5,816 5,889 6,130 5,930 5,971 6,289 Storm Sewer Pipe (miles) 29.80 31.31 32.58 33.00 33.48 34.91 72.00 77.80 80.80 78.30 Parking Paylots /Permit Parking 9 9 9 9 9 9 9 9 9 9 Parking Ramp 0 0 0 0 0 0 0 0 0 1 Source: Various City Departments 129 CITY OF STILLWATER, MINNESOTA OPERATING INDICATORS BY FUNCTION /PROGRAM LAST TEN FISCAL YEARS Function /Program 2001 2002 Fiscal Year 2003 2004 2005 General Government Elections - 3 - 2 - Registerd voters - 11,317 - 12,581 - Number of votes cast - 8,376 - 10,344 - Voter participation (registered) - 74.0% - 82.2% - Public Safety Police Citations & Arrest 1,686 2,149 2,007 2,067 2,042 Violations 8,586 8,646 8,962 9,896 10,336 Traffic Violations 3,255 2,508 2,803 3,751 3,415 Fire Medical 1,018 1,140 .726 779 826 Fire N/A N/A 93 64 71 False Alarm N/A N/A 120 136 119 Inspections 95 166 83 98 89 Other Services N/A N/A 166 209 220 Inspections Building Permits 1,616 1,175 1,718 1,149 1,332 Inspections 3,808 4,028 4,892 4,492 3,895 Value of Buidling Permits $60,598,170 $65,856,810 $59,537,643 $64,661,730 $53,070,092 Public Works General Maintenance (hours) N/A 15,471 14,440 10,278 12,285 Trash Pickup (hours) N/A 1,863 1,739 2,016 1,996 Snow Removal (hours) N/A 1,330 1,407 2,519 2,343 New Construction (hours) N/A 2,290 602 1,022 1,627 Culture and Recreation St Croix Valley Recreation Center Recreation Center - (hours) N/A N/A N/A N/A 2,099 Fieldhouse - (hours) N/A N/A N/A N/A N/A Lily Lake - (hours) N/A N/A N/A N/A 1,647 Recreation Maintenance (hours) N/A 4,192 2,585 2,948 3,875 Library Collection Size 83,072 84,237 87,185 90,320 92,589 Circulation (checked out) 230,219 244,468 248,387 259,681 266,378 Parks Park Reservations N/A 195 185 155 185 Park Maintenance (hours) N/A 5,685 3,238 4,983 5,468 Sanitary Sewer Sewer Work (hours) N/A 1,820 693 831 1,622 Parking Monthly Parking Permits 3,415 3,685 3,531 3,819 3,325 Source: Various City Departments Notes: Information not available is labeled N /A. 130 Fiscal Year 2006 2007 2008 2009 2010 2 - 2 - 2 12,247 - 13,373 - 12,607 8,920 - 10,983 - 8,802 72.8% - 82.1% - 69.80 1,959 2,368 2,513 1,826 2,158 10,247 10,336 10,591 8,990 9,173 3,781 3,554 2,894 2,884 2,406 941 806 778 656 788 67 43 39 55 76 143 122 126 95 157 96 115 490 455 526 212 190 147 213 280 864 1,014 1,329 1,126 1,086 3,009 2,582 3,389 2,868 2,758 $45,982,366 $73,127,457 $31,154,918 $38,071,294 $24,610,152 13,545 16,157 14,344 13,130 13,407 2,526 2,823 2,022 1,876 1,856 1,164 4,323 3,855 5,374 5,189 1,520 851 196 204 119 3,833 4,415 5,082 3,989 3,386 1,017 1,124 1,187 1,185 2,102 1,780 1,166 1,669 1,052 1,277 4,400 5,142 6,610 7,761 6,995 96,480 98,980 98,160 99,341 96,536 290,934 350,022 334,989 344,948 333,260 219 205 232 232 242 6,032 8,078 8,069 7,916 5,784 1,519 3,640 3,194 3,499 2,894 4,133 4,017 3,633 3,300 2,890 131 OTHER REPORTS SECTION LarsonAllen" LLP CPAs, Consultants & Advisors www.larsonallen.com AUDITOR'S REPORT ON LEGAL COMPLIANCE Honorable Mayor and Members of the City Council City of Stillwater Stillwater, Minnesota We have audited the financial statements of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Stillwater, Minnesota ( "the City ") as of and for the year ended December 31, 2010, which collectively comprise the City's basic financial statements and have issued our report thereon dated June 17, 2011. The City's basic financial statements include the operations of the Stillwater Water Commission. Our audit, described below, did not include the operations of the Stillwater Water Commission because the component unit engaged for its own separate audit that included the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Political Subdivisions covers seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing. Our study included all of the listed categories. The results of our tests indicate that for the items tested, the City complied with the material terms and conditions of applicable legal provisions, except as described below: Prompt Payment of Local Government Bills — Minnesota Statutes §471.425 subd. 2 requires that bills be paid within the standard payment period, defined as within 35 days of the date of receipt for municipalities who have governing boards which have regularly scheduled meetings at least once a month. During our audit fieldwork, we noted an invoice that was not paid within this period. Claims Declaration — Minnesota Statutes §471.38 subd. 1 requires that the City shall not allow payment for property or services until the person claiming payment signs a declaration to the effect that such claim is just and correct and that no part of it has been paid. During our audit fieldwork we noted that this declaration was not present on the City's checks above the space for endorsement by the payee. (135) INTERNATIONAL An independent member OfNCaiaInternational Honorable Mayor and Members of the City Council City of Stillwater This report is intended solely for the information and use of the City Council, management, and the Office of the State Auditor and is not intended to be, and should not be, used by anyone other than those specified parties. /-/-P LarsonAllen LLP Minneapolis, Minnesota June 17, 2011 (136) - - t CITY OF STILLWATER 2010 Audit and Financial Results Audit Results o AUDITOR OPINION ON FINANCIAL STATEMENTS - CLEAN. (FINANCIAL STATEMENTS FOUND TO BE FAIRLY STATED IN ALL MATERIAL RESPECTS) o INTERNAL CONTROL • No Material Weaknesses Reported • Letter of less severe internal control items, primarily Rec Center o MINNESOTA LEGAL COMPLIANCE FINDINGS o THIS IS A VERY FAVORABLE AUDIT RESULT - CITY FINANCE DEPARTMENT SHOULD BE COMMENDED 8/16/2011 Required Auditor Communications - Audit Standard No. 114 o Auditor Responsibilities under Generally Accepted Auditing Standards o Accounting Policies Consistent - "Apples to Apples ", No Unusual Transactions Noted o Accounting Estimates - Depreciation, Actuarially Estimated OPEB Liability & Values of Investments - Noted to be Reasonable o Difficulties in Performing Audit - NONE o Misstatements/ Corrections - Utilities Payable o Disagreements with Management - NONE Governmental Funds 2010 Highlights - General Fund o REVENUES • Loss of LGA ($837,994) • Loss of MVHC ($234,815) o EXPENDITURES • Hiring Freeze • Capital Purchases Freeze • Out -of- pocket flood costs were $113,129 • Cayuga removal - $48,450 o FUND BALANCE • Expenditures Exceeded Revenues by $70,258 1 8/16/2011 Library Fund 2010 Highlights- Library Fund o REVENUES • Transfers -In General Fund ($1,008,130) Bond Proceeds for Capital Purchases ($0) Library Fund Raiser ($4,656) • Other Revenues ($80,923) o EXPENDITURES • Operating ($1,102,000) • Capital Outlay ($0) o FUND BALANCE • Expenditures Exceeded Revenues by $8,291( 1p anned use of fund balance) Parks Fund 7 8/16/2011 2010 Highlights -Parks Fund o REVENUES • Transfers -In General Fund ($652,322) Bond Proceeds for Capital Purchases ($15,847) • Other Revenues ($23,356) o EXPENDITURES • Operating ($674,047) • Capital Outlay ($44,246) o FUND BALANCE • Revenues exceeded Expenditures by $1,632 Capital Outlay & Construction Governmental Funds Governmental Revenues by Source Enterprise Funds 2002 - Public Works Facility 2006 - Library Construction /Remodel 2004- North Hill Project 2009- Parking Ramp 2010 Highlights - Sanitary Sewer Fund o OPERATING REVENUES • No Rate Increase in 2010 • A possible rate increase for 2011 should be considered o OPERATING EXPENSES • Metropolitan Council - 6.8% Increase o NET ASSETS before ca ital contributions • Decreased by $348,435 (Depreciation $290,550) 3 8/16/2011 Storm Sewer Fund Sanitary Sewer Fund - Cash Balance $1,300,000 $1,000,000 a $900,000 1 -: $800,000 9 $700,000 * - j , ; $600,000 2001 2002 2003' 2004 2005' 2006' 2007 2008 2009 2010 . Rate increase occurred during these years 2010 Highlights -Storm Sewer Fund o OPERATING REVENUES • Last Rate Increase in January 2008 (Base increased from $4.50 to $10.00 per quarter) o OPERATING EXPENSES Membership (Middle St Croix WMO) $32,139 Pond Maintenance $45,855 o NET ASSETS Increased by $83,027 2010 Highlights- Signs & Lighting Fund • OPERATING REVENUES ■ No rate increase for 2009 • OPERATING EXPENSES ■ Electricity ($222,866) - 56 • NET ASSETS ■ Increase by $8,788 E Outstanding Interfund Loan - $105,406 • Industrial Park Lighting • Forest Hills (2006 Street Project) Parking Fund 4 8/16/2011 2010 Highlights- Parking Fund o OPERATING REVENUES • Increased by $54,416 over 2009 (Parking Ramp) o OPERATING EXPENSES • Increased by $60,322 over 2009 (Parking Ramp) o NET ASSETS • Decreased by $22,943 2010 Highlights -Water Fund o OPERATING REVENUES • No rate increase in 2010 • Decrease in pumped gallons - cooler and more natural moisture in 2010 than 2009 o OPERATING EXPENSES • Increase in repairs and supplies o NET ASSETS • Decreased by $164,844 Total Net Tax Capacity Trend Data $40,000,000 . _..... __... __. $35,000,000 $30,000,000 _..... .. _.. _._... $25,000,000 __- $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 od 1 y 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 iMi ■ Capital Outlay Bonds' ■ Improvement Bonds - ■ Revenue Bonds' ■ Tax Increment Bonds ■ Capital Lease ■ Other Long -Term Debt 5 Outstanding Debt $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 8/16/2011 2 Legal Debt Margin $50,000,000 -. $45,000,000 _... _ $40,000,000 _.... _... - $35,000,000 _.... _.. _. - $30,000,000 $25,000,000 - .. _.... . , $20,000,000 $15,000,000 ..... '.' . $10,000,000 $5,000,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2 ILa son lied LIA1 CPAs. C onsultants & Advisors www+.l a*so na llen.corn May 24, 2011 Mr. Larry Hanson, City Administrator City of Stillwater 216 4` Street North Stillwater, MN 55082 Subject: Purchasing Policy and Approval process for general City Disbursements and Capital Expenditures Dear Mr. Hanson: In response to your questions about the City's process for approval of disbursements/expenditures, I offer the following thoughts. It is my understanding that ALL disbursements /expenditures are routed to the Stillwater City Council for approval, and that currently, all capital expenditure items are required to be PRE- approved by the Council even if the related item has been budgeted. It is my understanding there has been some Council discussion concerning the benefits and efficiency of removing these processes from the Council's regular routine. In other words, if a capital item is budgeted, no pre - approval would be required. Further, as long as each department stays within its own budget parameters, no retroactive Council approval (on a disbursement -by- disbursement basis) would be required. While the majority of our small to medium sized city and government agency clients utilize the detail approval approach that Stillwater has been using for many years, we do serve some larger governments with populations of 50,000 to 450,000 where the approval process does not require a detailed disbursement -by- disbursement process. However, in these larger government scenarios, there is more finance department staffing, which provides for more internal control process, and commonly there is also an internal auditing department along with some electronic internal control process. The City of Stillwater would certainly fall in the small to medium sized government category and would not have some of the internal controls and segregation of duties opportunities available to larger government. Therefore, while I acknowledge the efficiency that would be gained by Council members in implementing a more abbreviated process, I would recommend the City of Stillwater continue its detail approval process for each disbursement/expenditure. In regard to the process of pre- approving all capital expenditure items, we are seeing this process with many of our city clients and view it as a sign of the times. Most boards and councils have taken a more "hands -on" approach with the larger capital items, believing that it is a valuable process to challenge the timing and the absolute necessity of any and all large dollar expenditures even if these items were approved in the original budget. While this process is somewhat tedious (some would say "painful "), it can be a valuable cost containment process. (Note that this step focuses less on internal control and more on cost containment). My thought would be that this step should continue if the City is gaining the "cost containment" benefit it is intended to produce, but it would not be as necessary as the detail disbursement review when considering the City's internal controls process. In addition to the above thoughts, I have received the draft of your proposed revisions to the City's Purchasing Policy which was originally approved and put in place on April 4, 2000. The proposed changes to that policy appear to give proper effect to the actual practices of the City in regard to purchasing (including the concepts discussed in the paragraphs above) and it also includes the new, increased dollar thresholds of Minnesota Statutes Section 471 .375. (Quotes are now required for purchases between $25,000 and $100,000 while sealed bids are required for purchases exceeding $100,000). Please contact me should you wish to discuss this, or any other topic, in further detail. I look forward to meeting with you, as well as Mayor and Council, in the near future to discuss the City's 2010 audit and financial statements. Sincerely, Thomas P. Koop, Principal LarsonAllen LLP r water, 1 T H E B I R T H P L A C E OF M I N N E S O T A TO: Mayor & Councilmembers DATE: August 12, 2011 RE: Proposed Armory FROM: Bill Turnblad, Community Development Director At the August 16 Council meeting Col. Bruce Jensen will present a report on the program planning charette that was conducted for the proposed new armory and fire station facility in early June. In addition to presenting the preferred conceptual site plan and various issues, Col. Jensen will discuss some of the next major milestones in the project schedule. This will include several decisions that the City Council will have to make in the near future, and by when the decisions will need to be made. They include: 1. Fire station program planning Will the City authorize the program planning analysis necessary to reasonably assure that the fire station and armory will be able to function side by side on the site as hoped? 2. Fire station construction Does the City want to construct the fire station concurrently with the armory or later? 3. Fire station design If the City wants to construct the fire station sometime after the armory is built, does the City want to have an architectural design completed for the fire station now so that we can be assured that the two buildings and all of their systems and programs will function together properly? 4. Gymnasium Does the City want to have the extra gymnasium space constructed concurrently with the armory or later? Attached are three preferred concept site plans. In each site plan the conceptual building layout is the same. What changes in the three versions is site circulation and parking. The City's preferred version has a fire station entrance that is separated from public entrances. bt Attachments: Concept site plans RC POV 8.050 SY . FIRE STATION ACCESS APRON / CITY PROVIDED ROAD 5,720 SY ® RC ACCESS ROD 5,000 SY FIRE STATION I CITY PARKING 3,590 SY / RC MBV 2,222 SY j - - - -- _ - - -T = - - --- — - - - -- — ----- - - - - -- - -, / Fence �� 1 r Control Gate _ l i POV - 202 Inhabi v; + i f/ - 14 t5 21 20 2 20, 24 Oc=mppai ic y- ion. / I FIRE STATI N READi S5` 22.999M k 13 m 1 POV • 56 1 87 ATFP - f % � 148' ATFP , go` 1 I i 200 100 50 0 Concept Design E.1 -B.a Serpentine Road Site Layout Minnesota Army National Guard FY14 Stillwater Readiness Center (RC) 27 June 2011 RC POV 8.050 SY ® FIRE STATION ACCESS APRON / CITY PROVIDED ROAD 5.725 SY ® RC ACCESS ROD 5,000 SY FIRE STATION / CITY PARKING 3,590 SY RC MBV 2,222 SY � ! Fence �I - -- 1 contra 1 Gate p� I 7' I ' -- - - - - -- Inhabit ao�pa t C Y a I I FIRE STATION READI SS 22 72.72911 111 ' -- r r I r J Control r' I Gage 1 1 12 --T -- �\- --- - -- ------ - - - - - J i 1 , ` t5 / POV - 202 21 20 21 2D /24 / It I c` F13 / , a � // 1 7 82'ATFP t / 148' ATFP / I L i z �� Concept Design E.1 -B.b Serpentine Road Site Layout 200 100 50 0 Minnesota Army National Guard FY14 Stillwater Readiness Center (RC) 27 June 2011 i i I 1 7r!f' 1,30 V, 7 Concept Design E.1 -E Serpentine Road Site Layout City's F ,., - ::oncept +r n ••� Minnesota Army National Guard FY14 Stillwater Readiness Center (RC) 21 June 2011 RC Pov 11 SY ® FIRE STATION ACCESS APRON, CITY PROVIDED ROAD RC ACCESS RW 5,0W SY EIRE- STATInN PARKWO RC MP4' 0 ' 8/16/2011 Stillwater Armory PPDC (Project Planning Documenting Charrette) Overview 16 August 2011 Colonel Bruce Jensen PPDC Overview - Conducted 7 -9 August 2011 at current Stillwater Armory - Participants: - City of Stillwater - MNARNG Stakeholders - Architectural Consultant - Washington County - National Guard Bureau Re resentatives Agenda (Uwayi .`Ready - Overview of PPDC - Preferred Concept - Issues -Fire Station -Way Ahead -Next Steps �r PPDC Overview Goals and Objectives - Develop concept for a functional facility for unit and city potential uses - Detailed analysis of scope, functional relationships, and potential shared spaces - Review alternatives for access to the site - Conduct preliminary review of LEED items — facility must achieve LEED Silver 8/16/2011 PPDC Overview a&va4.s 92eady Considerations -Potential City Uses -Site Access -Wetland Avoidance -Force Protection Stand Off Requirements -Minimize Impact on the Existing Site C KQtsg 10.0 incept Design E.1-B.b Serpenlre ROM Site Layout rine" "National Guard FYI 4 Sliliwater Rea&rsess Center (RC 1 oncept Dow E.1 -8 a Serpentine Road Site La youl jard FY14 Slftater Readlres AT -;,1! G,vt FY I A Sl,*wIc• P,, 2 V== oncept Dow E.1 -8 a Serpentine Road Site La youl jard FY14 Slftater Readlres AT -;,1! G,vt FY I A Sl,*wIc• P,, 2 8/16/2011 io'a *us, Issues attaaW Neadq . - Fire Station Scope and Execution Plans - Expansion of the Drill Floor and Execution Plans - Shared Opportunities (Classroom, Physical Fitness, Kitchen, Assembly Hall, Backup Generator, Common HVAC Systerr Single Entry Utilities jj.ftrnon.c¢ssw .nr arw$wm s - - lCrNH t'Of°BYKKa O 4=S _T Preferred Concept t r ` r Fire Station D wreliminary aCtaaya .`Beady Analysis of Potential Shared Spaces I-A�. i -Classrooms: 4050 SF► Kitchen: 1300 SF Physical Fitness Room: 800 SF Locker Room /Showers: 2080 SF - Assembly Hall: 6300 SF - Break /Vending Area: 764 Cost Per SF to Construct: $188 /SF':' Total Potential Cost Savings: $2,875,272 Above Costs do not include Potential Parking - savings, Site Preparation, and shared systems (mechanical, electrical, back -up power, etc) 3 ■ 8/16/2011 Way Ahead Potential Courses of Action - Further Refinement of Fire Station Scope is Needed Regardless of Selected Course of Action Option #1: Design and Construct together Option #2: Design Together and Partial Construction Together (i.e., build drill floor Addition together and Fire Station as follow -on or vice versa) Option #3: Design Together and Construct Separately Option #4: Design and Construct Separately Next St eps Upcoming Actions Further Study /Scoping of Fire Station Requirement COA Decision by City (15 Sep 11) Develop Designer Selection Board Packet and Designer Selection (October 2011) Conduct Design Charrette (Nov /Dec 2011) 35% Design Submittal (1 Jun 2012) 0 Bill Turnblad From: Hulne, Gregory [ghulne @burnsmcd.com] Sent: Monday, August 15, 2011 2:52 PM To: Bill Turnblad Cc: Bruce Jensen (bruce.a.jensen @us. army. mi1) Subject: City of Stillwater, New Fire Station Feasibility and Programming Study. an Burns & McDonnell propose to provide Architectural and Engineering Services for the City of Stillwater, New Fire Station Feasibility and Programming Study. Our services primary goals include development of a site specific scope of work, schedule and budget for the Main Stillwater Fire Station. The Feasibility and Programming Study will support future design and construction related efforts associated with co- locating the Fire Station with the Minnesota Army National Guard Readiness Center between County Road 12 and Boutwell Road at the extension of Maryknoll Drive. Detailed services will include on -site meetings with City and Fire Department staff focused on the following key areas: • Site Assessment (As related to the Fire Station parking, aprons and access) • Building Program • Building Concept Diagram(s) • Construction and Finish Assemblies • Building Systems • Shared Spaces w/ MNARNG Readiness Center • Sustainable Design Goals • Design and Construction Schedule • Project Budget Our team will include the Collaborative Design Group for Fire Station specific programming and design support. We anticipate this work to proceed in mid - August 2011 and conclude not later than mid - October 2011. Upon completion of the Feasibility and Programming Study a detailed report will be prepared and presentation made to the City of Stillwater. We anticipate the fees for this work to be between $15,000 and $17,500 plus reimbursable expenses of $1,500 to $2,000. Expenses will depend on number of meetings and quantity of reports prepared for the City. Burns & McDonnell will prepare a more detailed services and fee proposal as a basis of our agreement if City is interested in proceeding with this study. Please contact me if you have any questions. Gregory S. Hulne, AIA LEED ® AP BD +C, NCARB Senior Architect Aviation & Facilities Global Practice Burns & McDonnell :: Architecture 8201 Norman Center Drive Suite 300 Bloomington, MN 55437 -1053 D: 952.656.3655 :: M: 612.860.9721 ghulne @burnsmcd.com www.burnsmcd.com.. \_architecture (Note, new direct phone dial number) Atlanta :: Chicago:: Denver:: Houston:: Kansas City:: Miami:: Minneapolis:: New Jersey:: Phoenix:: San Diego:: 1 LIST OF BILLS EXHIBIT "A" TO RESOLUTION #2011 -109 Abbott Paint & Carpet Stain -Amber Varnish 29.95 ABS Company 1st Half Collections TIF 1 1,927.35 Ace Hardware Supplies 298.72 Action Rental, Inc. Concrete 160.31 Advanced Firefighter Response System Pager Services 3.90 AMEM AMEM Conference 9/18 -21/11 130.00 Ammonia House, Inc. The Equipment Repair Supplies 169.83 Anderson Marshall Reimbursement for overpayment Ramp 5.00 APA MN Administrators Conference 260.00 Aramark Uniform Services Uniforms, Mats, Towels 1,053.49 Aspen Mills Uniforms 209.84 AT &T Telephone 63.09 Blank Karen Reimbursement Parking Overpayment 3.00 Berg, Karen Reimburse Park Fee 100.00 Board of Water Commissioner July WAC Charges 14,949.00 Breezy Point Resort Lodging Gannaway AMEM conference Septemb 555.00 Brines Market Meals for Lumberjack Days 2011 451.78 Brock White Co. LLC Asphalt 383.26 C. Hassis Snow Removal & Yard Services Lawn Maintenance 1,049.93 Carquest Auto Parts Equipment Repair Supplies 467.84 Century Power Equipment Equipment Repair Supplies 6.36 City of Bayport Police Officer for Lumberjack Days 269.20 City of Oak Park Heights Police Officers for Lumberjack Days 2,083.58 Clareys Safety Equipment Vehicle Repair Charges 583.79 Cole Papers Black Liners, Soap 823.38 Comcast Parking Ramp Security 195.78 Cub Foods Food for Lumber Jack Days 78.21 Delta Dental Plan of Minnesota Dental Cobra 243.30 Diamond Products Paint 147.49 Dragonfly Gardens Rain Garden Plantings 1,931.23 East Central Diesel, Inc. Equipment Repair Supplies 197.67 Emergency Apparatus Maintenanc Ladder Testings 3,509.17 Emergency Medical Products, In Ice Packs 45.32 Flexible Pipe Tool Co. Sewer video cable repair 791.22 Foremost Promotions Fire Education Materials 210.24 Fred's Tire Company Equipment Repair Supplies 20.22 Frontier Ag & Turf Equipment Repair Supplies 57.66 Fury Dodge Chrysler Vehicle Repair Charges 575.84 Galls, an Aramark Company Uniforms 150.89 Gimmees Night to Unite 769.52 Guild Art Dasher Banner State Farm 98.33 Hardrives Inc. 2011 Street Improvement Project 281,513.39 Hardwood Creek Lumber Inc. Hubs, Lath 174.79 Harycki Kenneth Reimburse for Mileage to Washington DC & Cab 994.50 EXHIBIT "A" TO RESOLUTION #2011 -109 Page 2 Hedberg Aggregates Mulch 59.64 Hejny Rental Nite to Unite 227.90 Heritage Embroidery & Design Senior & Junior Team Embroidered Jacket 492.22 Holtey, Julie Refund Parking Fee in Ramp 10.00 I- State Truck Center Repair frame and rear axle on Jetter 1,048.00 Iceman Industries, Inc. Dust control liquid 1,218.38 Infratech, Inc. Televise services 2,100.00 J.H. Larson Electric Equipment Repair Supplies 122.91 Jefferson Fire & Safety, Inc. Bunker Gear Repair 261.47 John Deere Gov & National Sale Flex -Wing Grooming Mower 15,794.03 John Deere Landscapes /Lesco Equipment Repair Supplies 77.77 Kath Companies Bulk Oil 1,209.61 Kirvida Fire, Inc. Repair 6108 2,852.35 Lemoine Chyrisse Reimburse for DARE Grad Photos & Supplies 90.83 Little Falls Machine Inc. Equipment Repair Supplies 1,065.14 Loffler Companies, Inc. Maintenance Agrmnts, Telephone Labor Charge 415.19 Mac Queen Equipment Inc. Equipment Repair Supplies 417.57 Mainstream Development Partnership Payment 1st half 2011 TIF 1 22,783.81 Menards Supplies 536.56 Metropolitan Council Wastewater Charge September 2011 147,941.04 Metropolitan Mechanical Contractors, Inc. Repair on City Hall Chiller 3,833.51 MN Ice Arena Managers 2011 Fall Conf STAR Class 175.00 MN Pollution Control Agency Stillwater Stage 3 Floodwall 500.00 Mondor LTEE /LTD 34 Team Jackets 1,082.32 NAPA Auto Parts Equipment Repair Supplies 18.52 Nardini Fire Equipment Class a Foam 986.46 National Pen Company Pens for Fire Prevention Week 308.90 Natural Resource Group LLC Downtown Sewer Lining, Stage 3 Levy Wall 11,199.71 Northern Tool GPM Boxed Northstar Pump 74.80 Northland Graphics Self Inking Stamps 51.14 Northside Welding & Repair LLC Repair and Inspection at Aiple Lift Station 200.00 Novak,Kelli Refund Nick and Mitchell 4 x 4 200.00 Office Depot Office Supplies 194.65 Olsen Chain & Cable, Inc. Equipment Repair Supplies 57.09 Olson, Andrea Reimburse for Night to Unite Banner 210.86 OnSite Sanitation Unit Rentals 1,915.34 Plant Health Associates Professional Services for 6/1- 7/31/11 812.50 Pogge, Michel Reimburse for Hotel Rooms MN Preservation Conf 252.75 R & R Specialties, Inc. Equipment Repair Supplies 275.00 Rick's 36 Automotive Service Vehicle Repair Charges 444.96 Riedell Shoes, Inc. Skates for Resale 143.99 Roettger Welding, Inc. Equipment Repair Supplies 4,232.25 S & T Office Products, Inc. Office Supplies 40.08 Semler, John D. Payment 1st Half 2011 TIF 1 5,466.80 Service on a Shoestring Karen Richtman dba Recycling Coordinator Service,RRR School Progr 7,300.28 EXHIBIT "A" TO RESOLUTION #2011 -109 Page 3 Sherwin Williams Paint 306.25 Shilts, Cindy Reimburse for Supplies 50.62 Special Operations Training Assoc. K9 training Wulfing and Peterson 270.00 Sprint PCS Cell Phone 90.48 St. Croix Boat & Packet Co. July Arena Billing 35,499.91 St. Croix Harley- Davidson Vehicle Repair Charges 4.10 St. Croix Recreation Co. New Recycling containers for Parks 6,989.63 Stender, Jeff Reimburse for Cell Phone Charger 26.77 Stillwater & Oak Park Heights CVB 2nd Qtr Lodging Tax 36,131.37 Stillwater Farm Store Supplies 53.42 Stillwater Fire Relief Assoc 2010 Disbursement 3,000.00 Stillwater Motor Company Squad Repair 4,580.59 Stillwater Rotary Club 3rd Qtr Membeship Dues 182.50 Stillwater Towing Towing 343.90 Streicher's Equipment 37.40 Sun Newspapers Publications 353.63 SW /WC Service Cooperatives Retiree Health Insurance, Cobra 55,569.75 T.A. Schifsky & Sons, Inc. Asphalt 1,393.38 The Alternator & Starter Store Repair Starter 64.13 Titan Machinery Equipment Repair Supplies 4,094.91 Toll Gas & Welding Supply Maintenance Agreement 10.20 TR Computer Sales, LLC- Permit Works info from Springbrook 30.00 Trane U.S. Inc. Repair Chiller 1,792.00 Trans Union LLC Basic Service 5.00 Twin City Garage Door Co. Building Repair 918.84 Uniforms Unlimited, Inc Uniforms 200.95 United Refrigeration, Inc. Equipment Repair Supplies 11,527.68 United Rentals Northwest Inc. Supplies 165.66 US Bank Corporate Trust Svcs Paying Agent Fees 402.50 Verizon Wireless Police Internet 528.68 Vermeer Sales and Service Equipment Repair Supplies 1,072.37 Viking Industrial Center Safety Equipment 106.88 Wa County License Bureau Police Tabs for Unmarked Cars 11.00 Washington County Sheriff's Office 800 MHZ Radio Service 5,250.00 Waste Management Savage 1st Half Payment- Garbage Certification 33,267.24 WET Technology, Inc. Cooling Water Treatment 678.53 Wiegand ,Sheila Reimburse for Coffee, Fan, Extension Cord 63.99 Wingfoot Commercial Tire Tires for vactor 1,234.40 Winnick Supply Supplies 103.25 Wolter, Rachel Refund Partial Fee due to Change Resery 50.00 Yocum Oil Company Fuel 14,162.84 Zayo Enterprise Networks,LLC Telephone 572.81 EXHIBIT "A" TO RESOLUTION #2011 -109 LIBRARY Ace Hardware Baker & Taylor BWI Brodart Budget Lighting CDW -G East Suburban Resources Gaylord Bros. Grainger Henry, Marvin Master Mechanical Midwest Tape Security Response Washington County Library Xcel Energy JULY MANUALS Coalition for St. Croix River Crossing Inc. Postmaster Stillwater Station Xcel Energy Page 4 Supplies 400.06 Library Materials 146.77 Library Materials 1,290.44 Library Materials 2,574.98 Light Bulbs 323.45 Equipment 561.18 Shredding 6.20 Processing Supplies 120.06 Building Repair Supplies 171.31 Reimburse for Mileage 16.10 Building Repair 635.33 AV Materials 555.72 Maintenance Agreement 155.67 Library Materials, Postage & Supplies 1,455.18 Electricity, Gas 4,526.57 Consulting Services 80,000.00 3rd Qtr. Utility Billing Postage 2,511.74 Refund Inv Fee and License Fee 500.00 Electricity, Gas 2,471.49 RESOLUTION 2011 -110 APPROVING NAME CHANGE FROM OLIVER & LOUIS, INC. DBA: THE BIKERY TO VACKRA NYA LIV, INC., DBA: THE BIKERY WHEREAS, a revised application for a name change and the elimination of one of the officers of the corporation, has been received from Michelle Vrambout owner of The Bikery; and WHEREAS, only the Licensee name and officer elimination has changed and all required forms have been submitted. NOW THEREFORE, BE IF RESOLVED that the City Council of Stillwater, Minnesota, hereby approves the name change conditioned upon Minnesota Liquor Control. Adopted by Council this 16 day of August, 2011. Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk RESOLUTION 2011 -111 APPROVING MINNESOTA PREMISES PERMIT FOR LAWFUL GAMBLING FOR AMERICAN LEGION POST 491, LOCATED AT NO NECK TONY'S, 231 MYRTLE STREET, STILLWATER, MN WHEREAS, American Legion Post 491, has submitted applications to the City of Stillwater requesting City approval of a Minnesota Gambling Premises Permit application located at the No Neck Tony's, 231 Myrtle Street, Stillwater, MN; and WHEREAS, it has been demonstrated that the organization is collecting gambling monies for lawful purposes. NOW THEREFORE, BE IT RESOLVED, that the City of Stillwater approve of the local gambling license located at the No Neck Tony's, 231 Myrtle Street, Stillwater, MN, subject to the approval of transfer of On -Sale and Sunday Liquor License to No Neck Tonys by the City and other agencies. The City Clerk is directed to attach a copy of this resolution to the application to be submitted to the Gambling Control Board. Adopted by the City Council for the City of Stillwater this 16 day of August, 2011. Ken Harycki, Mayor Attest: Diane F. Ward, City Clerk Minnesota Lawful Gamblin_c 3/11 Page 1 of 2 LG214 Premises Permit Application Annual Fee $150 FOR BOARD USE ONLY Check # Required Attachments to LG214 $ 1. If the premises is leased, attach a copy of your lease. Mail the application and required attachments to: Use LG215 Lease for Lawful Gambling Activity. Gambling Control Board 2. $150 annual premises permit fee, for each permit. 1711 West County Road B, Suite 300 South Make check payable to "State of Minnesota." Roseville, MN 55113 Questions? Cali 651 - 639 -4000 and ask for Licensing. Organization Information n 1. Organization name 1 65�r E"f Licensenumber (004 2. Chief executive officer (CEO) �.�VL \D T f JQnAt* - -) Daytime phone W OO 3. Gambling manager D aytime phone Gambling Premises Information 4. Current name of site where gambling will be conducted / V� - TJ1 Y, 5. List any previous names forthis location U _ � 6. Street address where premises is located A r+ be -- (Do not use a P.O. box number or mailing address) 7. City I Township O R I County p �il.� A 9 Zip code 8. Does your organization own the building where the gambling will be conducted? D es Pco If no, attach LG215 Lease for Lawful Gambling Activity. M Yes CNo Raffle only. No lease is required if only a raffle will be conducted. " - 9. Is any other organization conducting gambling at this site? E]Yes Don't know 10. Has your organization previously conducted gambling at this site? aes allo Gambling Bank Account Information (must be in Minnesota) 11. Bank name Bank account number / ) 12. Bank street address City State Zip code MN — - Ssp All Temporary and Permanent Off -site Storage Spaces (for gambling equipment and records related to this site - must be stored in Minnesota) 13. Address (Do not use a P.O. box number) City State Zip code MN MN Reset Form LG214 Premises Permit Application 3/11 Page 2 of Acknowledgment by Local Unit of Government: Approval by Resolution CITY APPROVAL COUNTYAPPROVAL for a gambling premises for a gambling premises located within city limits located in a township City name County name Date approved by city Date approved by county Resolution number if any Resolution number if any Signature of city personnel Signature of county personnel Title Date / / Title Date Acknowledgmen and Oath 1. 1 hereby consent that local law enforcement officers, 5. 1 am the chief executive officer of the organization. the Board or its agents, and the commissioners of 6. 1 assume full responsibility for the fair and lawful operation of revenue or public safety and their agents may enter all activities to be conducted. and inspect the premises. 7. 1 will familiarize myself with the laws of Minnesota governing 2. The Board and its agents, and the commissioners lawful gambling and rules of the Board and agree, if licensed, of revenue and public safety and their agents are to abide by those laws and rules, including amendments to authorized to inspect the bank records of the gambling them. account whenever necessary to fulfill requirements g. Any changes in application information will be submitted to of current gambling rules and law. the Board no later than 10 days after the change has taken 3. 1 have read this application and all information effect. submitted to the Board is true, accurate, and g. 1 understand that failure to provide required information or complete. providing false or misleading information may result in the 4. All required information has been fully disclosed. denial or revocation of the license. Sign fire of Chief Executive Officer Idesigne may not sign) Date Print name Reset Form Print form and have CEO sign Data privacy notice: The information requested Your organization's name and Private data about your organization are on this form (and any attachments) will be used address will be public available to: Board members, Board staff by the Gambling Control Board (Board) to information when received by whose work requires access to the information; determine your organization's qualifications to the Board. All other information Minnesota's Department of Public Safety; be involved in lawful gambling activities in provided will be private data Attorney General; Commissioners of Minnesota. Your organization has the right to about your organization until the Administration, Minnesota Management & refuse to supply the information; however, if Board issues the permit. When Budget, and Revenue; Legislative Auditor, your organization refuses to supply this the Board issues the permit, all national and international gambling regulatory information, the Board may not be able to information provided will agencies; anyone pursuant to court order; other determine your organization's qualifications become public. If the Board individuals and agencies specifically authorized and, as a consequence, may refuse to issue a does not issue a permit, all by state or federal law to have access to the permit. If your organization supplies the information provided remains information; individuals and agencies for which information requested, the Board will be able to private, with the exception of law or legal order authorizes a new use or process your organization's application. your organization's name and sharing of information after this notice was address which will remain public. given; and anyone with your written consent. IT his form will be made available in alternative format (i.e. large print, Braille) upon request. Minnesota Lawful Gambling LG215 Lease for Lawful Gambling Activity 3/11 Page 1 of heck applicable item: 1. New lease. (Do not submit existing lease with amended changes). Date that the ch n es will be effective. Submit changes at least 10 days before the effective date of the change. 2. New owner. Effective date 6 1 011f Submit new lease within 10 days after new lessor assumes ownership. Organization name 1� Address N. License number Daytime phone W ao C�Dy(R s IP3 Name of leased premises Street address city State Zip Daytime phone 5 p�. I ' "��I _ � p � r W4.Ps-'i" NN Name of legal owner of remises Business /street address city State Zip Daytime phone Name of lessor (if same as legal Business /street address city State Zip Daytime phone owner, write in "SAME ") Check (4) all activities that will be conducted Pull -tabs Pull -tabs with dispensing device QTipboards ❑Paddlewheel aPaddlewheel with table aBingo ❑,Bar bingo Pull -tab, Tipboard, and Paddlewheel Rent (No lease required for raffles.) Booth operation - sales of gambling equipment by an employee Bar operation - sales of gambling equipment within a leased (or volunteer) of a licensed organization within a separate enclosure premises by an employee of the lessor from a common area where that is distinct from areas where food and beverages are sold.. food and beverages are also sold. r- Does your organization OR any other organization conduct gambling from a booth operation at this location? Yes — — No — — — — — — — — — — — — — — — — — — — — -- — — — — — — — J If you answered YeS to the question above, rent limits are If you answered no to the question above, rent limits are based on the following combinations of operation: based on the following combinations of operation: - Booth operation - Bar operation - Booth operation and pull -tab dispensing device - Bar operation with pull -tab dispensing device - Booth operation and bar operation - Pull -tab dispensing device only - Booth operation, bar operation, and pull -tab dispensing device The maximum rent allowed may not exceed $1,750 in total per month for all organizations at this premises. COMPLETE ONE OPTION: COMPLETE ONE OPTION: Option A: 0 to 10% of the gross profits per month. Option A: 0 to 20% of the gross profits per month. Percentage to be paid % Percentage to be paid Option B: When gross profits are $4,000 or less per month, Option B: When gross profits are $1,000 or less per month, $0 to $400 per month may be paid. $0 to $200 per month may be paid. Amount to be paid $ Amount to be paid Option C: $0 to $400 per month on the first $4,000 of gross Option C: $0 to $200 per month on the first $1,000 of gross profit. Amount to be paid $ profits. Amount to be paid $ Plus, 0% to 10% of the gross profits may be paid per month on Plus, 0% to 20% of the gross profits may be paid per month on gross profits over $4,000. Percentage to be paid % gross profits over $1,000. Percentage to be paid Bingo Rent Option D: 0 to 10% of the gross profits per month from all lawful gambling activities held during bingo occasions, excluding bar bingo. Percentage to be paid Option E: A rate based on a cost per square foot, not to exceed 110% of a comparable cost per square foot for leased space, as approved by the director of the Gambling Control Board. No rent may be paid for bar bingo. Rate to be paid $ per square foot. The lessor must attach documentation, verified by the organization, to confirm the comparable rate and all applicable costs to be paid by the organization to the lessor. Bar Bingo... No rent may be paid for bingo conducted in a bar. LG215 Lease for Lawful Gambling Activ Lease Term - The term of this lease agreement will be concurrent with the premises permit issued by the Gambling Control Board (Board). Management of Gambling Prohibited - The owner of the premises or the lessor will not manage the conduct of gambling at the premises. Participation as Players Prohibited - The lessor will not participate directly or indirectly as a player in any lawful gambling conducted on the premises. The lessor's immediate ' family and any agents or gambling employees of the lessor will not participate as players in the conduct of lawful gambling on the premises, except as authorized by Minnesota Statutes 349.181. 3/11 Page 2 of 2 Other Prohibitions The lessor will not impose restrictions on the organization with respect to providers (distributor or linked bingo game provider) of gambling - related equipment and services or in the use of net profits for lawful purposes. The lessor, the lessor's immediate family, any person residing in the same residence as the lessor, and any agents or employees of the lessor will not require the organization to perform any action that would violate statute or rule. The lessor must not modify or terminate this lease in whole or in part due to the lessor's violation of this provision. If there is a dispute as to whether a violation occurred, the lease will remain in effect pending a final determination by the Compliance Review Group (CRG) of the Gambling Control Board. The lessor agrees to arbitration when a violation of this provision is alleged. The arbitrator shall be the CRG. Illegal Gambling The lessor is aware of the prohibition against illegal gambling in Minnesota Statutes 609.75, and the penalties for illegal gambling violations in Minnesota Rules 7865.0220, Subpart 3. In addition, the Board may authorize the organization to withhold rent for a period of up to 90 days if the Board determines that illegal gambling occurred on the premises or that the lessor or its employees participated in the illegal gambling or knew of the gambling and did not take prompt action to stop the gambling. Continued tenancy of the organization is authorized without payment of rent during the time period determined by the Board for violations of this provision, as authorized by Minnesota Statutes 349.18, Subdivision 1(a). To the best of the lessor's knowledge, the lessor affirms that any and all games or devices located on the premises are not being used, and are not capable of being used, in a manner that violates the prohibitions against illegal gambling in Minnesota Statutes 609.75. Notwithstanding Minnesota Rules 7865.0220, Subpart 3, an organization must continue making rent payments under the terms of this lease, if the organization or its agents are found to be solely responsible for any illegal gambling, conducted at this site, that is prohibited by Minnesota Rules 7861.0260, Subpart 1, item H or Minnesota Statutes 609.75, unless the organization's agents responsible for the illegal gambling activity are also agents or employees of the lessor. The lessor must not modify or terminate the lease in whole or in part because the organization reported, to a state or local law enforcement authority or the Board, the conduct of illegal gambling activity at this site in which the organization did not participate. Access to permitted premises Consent is given to the Board and its agents, the commissioners of revenue and public safety and their agents, and law enforcement personnel to enter and inspect the permitted premises at any reasonable time during the business hours of the lessor. The organization has access to the permitted premises during any time reasonable and when necessary for the conduct of lawful gambling on the premises. Lessor records The lessor must maintain a record of all money received from the organization, and make the record available to the Board and its agents, and the commissioners of revenue and public safety and their agents upon demand. The record must be maintained for 3 -1/2 years. Rent all- inclusive Amounts paid as rent by the organization to the lessor are all - inclusive. No other services or expenses provided or contracted by the lessor may be paid by the organization, including but not limited to: - trash removal - janitorial and cleaning services - electricity, heat - other utilities or services - snow removal - lawn services - storage - security, security monitoring - in the case of bar operations, cash shortages. Any other expenditures made by an organization that is related to a leased premises must be approved by the director of the Gambling Control Board. Rent payments may not be made to an individual. Changes in lease • Lease information - If the lease is amended with no change in ownership, the organization will submit the a new lease to the Board at least 10 days before the effective date of the change. • ownership - If a change in ownership occurs, the organization will submit a new lease to the Board within 10 days after the new lessor has assumed ownership. Acknowledgment of Lease Terms I affirm that this lease is the total and only agreement between the lessor and the organization, and that all obligations and agreements are contained in or attached to this lease and are subject to the approval of the director of the Gambling Control Board. The lease may be terminated by either party without cause with a 30 -day written notice. Other lessor It Print rime and till of les r 'Prifit name and titlepl lelsee Questions? Contact the Licensing Section, Gambling Control Board, at 651- 639 -4000. This publication will be made available in alternative format (i.e. large print, Braille) upon request. Data privacy notice: The information requested on this form and any attachments will become public information when received by the Board, and will be used to determine your compliance with Minnesota statutes and rules governing lawful gambling activities. Print Form Reset Form': I wat _ City Council DATE: August 12, 2011 REQUEST: CLG Grant Application to attend the State Wide Preservation Conference in Faribault CC DATE: August 16, 2011 REVIEWERS: Community Dev. Director PREPARED BY: Michel Pogge, City Planne DISCUSSION The City annually applies for a grant to send HPC members and staff to the State Wide Preservation Conference. To maintain the City's Certified Local Government status we are required to send at least one HPC member annually to the conference. The grant will cover registration, mileage, and hotel costs. This year we are looking to send three HPC members and two staff members. This conference will assist the City in keeping up with current preservation trends. The Conference will also serve as a great networking opportunity with preservationists around the State of Minnesota. FISCAL IMPACT The total grant amount is $700.00, which will cover most of the cost of registration, mileage to Faribault, and one night in a hotel. The City will need to contribute $61.55 to cover costs not covered by the grant. RECOMMENDATION That the City Council approve the CLG Grant Application to attend the State Wide Preservation Conference in Faribault, MN. RESOLUTION 2011- 112 AUTHORIZING THE CERTIFIED LOCAL GOVERNMENT GRANT APPLICATION THROUGH THE MINNESOTA HISTORICAL SOCIETY BE IT RESOLVED, by the City Council of Stillwater, Minnesota authorizes the Certified Local Government grant application through the Minnesota Historical Society with a grant request of $700.00 and a local match of $2,072.70 ($2,011.15 in -kind and $61.55 cash) for the 2011 State Wide Preservation Conference in Faribault, MN. Adopted by the City Council this 16 day of August, 2011. Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk Minnesota Historical Society Certified Local Government Scholarship Application 31st Annual Preservation Conference Paradise Center for the Arts, Faribault, September 22 -23, 2011 Applica ( 0- 1. Applicant: Name of City Mailing A City of Stillwater 216 N 4 St City /State /Zip Stillwater, MN 55082 CLG Cert if icat ion Date: 1/29/1988 City Contact Information 2. Authorized Official: Signature 3. Project Director (City Contact) Signature 4. HPC Chair: Signature Scholarship Rec pien 6. Scholarship request: Number of attendees: F Information 5 Requested funds: $ 700.00 (Cannot exceed 50% of total cost. $700 limit per city) Matching funds: $ 2, 072.70 (Must be at least 50% of requested funds) Ken Harycki, Mayor 651 - 430 -8800 Print name and title Telephone Michel Pogge, City Planner 651- 430 -8822 Print name and title Telephone Howard Lieberman, Chair Print name � crcNr�vr�c 7. Name of attendee(s) and title /position Jeff Johnson, HPC Member Roger Tomten, HPC Member John Brach, HPC Member Bill Turnblad, Community Dev Director Mike Pogge, City Planner, HPC Staff Member 8. Provide a detailed budget. Only one budget is necessary if the same amount of funds are being requested for more than one person. A. Registration No. of Participants: 4 X $90 (two day early registration) = Registration Total $ 360.00 *As a speaker Mike Pogge is not required to pay -_ B. Mileage (limited to two cars per city) Mileage: 280 miles X $.51 Per mile = Mileage Total $ _L41.80 ......................................................................_................_......._................................................_..........................._.......................................................... ............................... C. Lodging (Hotel expenses can only be requested from cities located further than 50 miles one way from Fariboult) No. of Hotel Rooms: 4 X 1 OxZ X $ 64.44 = Hotel Total $ 252.75 nights NOTE: Please contact Visit Foribault for hotel information. They can be reached at 800 - 658 -2354 or www.visitfaribouIt.com/where-to-stay D. Actual Costs Subtotal (Add A through D above) = 761.55 E. In- Kind /Volunteer Time (To be used as match for Actual Costs above) In -Kind (City Staff) Use actual pay rate for hourly rate No. of participants 2 X hourly 37'925 X No. of hours 19 = In Kind Total $ 1 ,441.15 rate (8 hrs /day + travel) Volunteer (HPC Members) MNSHPO has established an across the board $10 /hr rate for all HPC members. No. of participants 3 X hourly 10.00 X No. of hours 19 = Volunteer Total $ 570.00 rate (8 hrs /day + travel) F. Total Cost FUNDS REQUESTED $ 700.00 (Actual Cost Subtotal from D above not to exceed $700 per CLG. If costs exceed $700, the excess should be entered under cash match.) IN -KIND /VOLUNTEER TIME (from E above )= $ 2 ,011.15 CASH MATCH* $ 61.55 ( *Only required if Funds Requested total is greater than In -Kind/ Volunteer Time total. Applicants must provide at least a 50% match) l Administration Memorandum To: Mayor & City Council From: Diane Ward Date: 8/12/2011 Re: New Tap Room License — Lift Bridge Brewery As you may recall, the City Council passed an Ordinance that became effective on July 9, 2011 allowing the On -Sale Tap Room license for breweries (legislature effective date was May 25, 2011). The City has received an application from Lift Bridge Brewery for this new license. As with all liquor licenses, a public hearing must be held before the City Council. Staff is presently checking with the Washington Department of Health and Department of Agriculture to see if any approvals are necessary prior to the issuance of the Tap Room License. RECOMMENDATION: Staff recommends that the On -sale Tap Room License for Lift Bridge Brewery be approved subject to review and approval by the conditioned upon approval by Police, Fire, Building Inspection, Finance Departments, Minnesota Liquor Control and the obtaining of any necessary approvals from the Washington County Department of Health and Department of Agriculture. ACTION REQUIRED: If Council concurs with the recommendation, they should pass a motion adopting a resolution entitled, APPROVING THE ISSUANCE OF A NEW ON -SALE BREWER'S TAP ROOM LICENSE TO LIFT BRIDGE BREWING TECHNOLOGIES LLC, DBA: LIFT BRIDGE BREWERY LOCATED AT 1900 TOWER DRIVE APPROVING THE ISSUANCE OF A NEW ON -SALE BREWER'S TAP ROOM LICENSE TO LIFT BRIDGE BREWING TECHNOLOGIES LLC, DBA: LIFT BRIDGE BREWERY LOCATED AT 1900 TOWER DRIVE WHEREAS, the Minnesota Legislature passed a law effective May 25, 2011 allowing for the On -sale Brewer's Tap Room License; and WHEREAS, the Stillwater City Council adopted Ordinance 1036 authorizing the issuance of the On -Sale Brewer's Tap Room License within the City of Stillwater and the setting of fees for said license on July 5, 2011, which became effective on July 9, 2011; and WHEREAS, an application has been received requesting the issuance of a new on -sale brewer's tap room license on July 19, 2011; and WHEREAS, a public hearing on the issuance of new license was held on August 16, 2011; and WHEREAS, all required City forms have been submitted and fees paid. NOW THEREFORE, BE IF RESOLVED that the City Council of Stillwater, Minnesota, hereby approves the issuance of a Tap Room liquor license conditioned upon approval by Police, Fire, Building Inspection, Finance Departments, Minnesota Liquor Control and the obtaining of any necessary approvals from the Washington County Department of Health and Department of Agriculture. Adopted by Stillwater City Council this 16'' day of August, 2011. Ken Harycki, Mayor Attest: Diane F. Ward, City Clerk 2 Nkater Administration Memorandum To: Mayor & City Council From: Diane Ward, City Clerk Date: 8/3/2011 Re: Transfer of On -sale and Sunday liquor license As required, a public hearing must be held for the transfer of liquor licenses. A liquor license application has been received for the transfer of an On -sale liquor and Sunday license from Loggers, Inc; DBA Loggers to TJ Stillwater LLC, DBA No -Neck Tony's located at located at 231 Myrtle Street. Approval for the licenses should be contingent upon approval by Police, Finance, Fire, Building Departments and Minnesota Liquor Control. ACTION REQUIRED: If Council desires to issue a new On -Sale liquor license they should pass a motion to adopt Resolution No. 2011- APPROVING TRANSFER OF OWNERSHIP OF THE ON -SALE AND SUNDAY LIQUOR LICENSES FROM LOGGERS, INC; DBA LOGGERS TO TJ STILLWATER LLC, DBA NO- NECK TONY'S APPROVING TRANSFER OF OWNERSHIP OF THE ON -SALE AND SUNDAY LIQUOR LICENSES FROM LOGGERS, INC; DBA LOGGERS TO TJ STILLWATER LLC, DBA NO -NECK TONY'S WHEREAS, an application has been received for a the transfer of a On -sale and Sunday licenses from Loggers, Inc; DBA Loggers to TJ Stillwater LLC, DBA No -Neck Tony's located at 231 Myrtle Street.; and WHEREAS, a public hearing on the transfer of licenses was held on August 16, 2011; and WHEREAS, all required forms have been submitted and fees paid. NOW THEREFORE, BE IF RESOLVED that the City Council of Stillwater, Minnesota, hereby approves the transfer of ownership of the On -Sale and Sunday liquor license conditioned upon approval by Police, Fire, Building Inspection and Finance Departments, and Minnesota Liquor Control. Adopted by Stillwater City Council this 16 day of August, 2011. Ken Harycki, Mayor Attest: Diane F. Ward, City Clerk Water Administration � Memorandum To: Mayor & City Council From: Diane Ward Date: 8/12/2011 Re: New Tap Room License — Stillwater Brewery This request is for a New Tap Room License for Stillwater Brewery. As with all liquor licenses, a public hearing must be held before the City Council. Because this license is a new one, staff checked with the Department of Agriculture to see if this brewery needs approval or inspections from them. Yesterday, I received information that they do not have approval from the Department of Agriculture, a manufactures license is required pursuant to MS 28A.04. Also, the Department of Agriculture indicated that the Washington Department of Health will also need to inspect prior to issuance of the license. I have received information from Liquor Control that Stillwater Brewery just submitted on August I0 their application for Brand Registration which is required prior to selling to the public. They are presently reviewing the information. RECOMMENDATION: Staff recommends that the On -sale Tap Room License for Stillwater Brewery be approved subject to review and approval by the conditioned upon approval by Police, Fire, Building Inspection, Finance Departments, Minnesota Liquor Control, the obtaining of any necessary approvals from the Washington County Department of Health, Department of Agriculture, and approval of brand registration from Liquor Control.. ACTION REQUIRED: If Council concurs with the recommendation, they should pass a motion adopting a resolution entitled, APPROVING THE ISSUANCE OF A NEW ON -SALE BREWER'S TAP ROOM LICENSE TO STILLWATER BREWING COMPANY, LLC, DBA: STILLWATER BREWERY LOCATED AT 402 MAIN STREET N. APPROVING THE ISSUANCE OF A NEW ON -SALE BREWER'S TAP ROOM LICENSE TO STILLWATER BREWING COMPANY, LLC, DBA: STILLWATER BREWERY LOCATED AT 402 MAIN STREET N. WHEREAS, the Minnesota Legislature passed a law effective May 25, 2011 allowing for the On -sale Brewer's Tap Room License; and WHEREAS, the Stillwater City Council adopted Ordinance 1036 authorizing the issuance of the On -Sale Brewer's Tap Room License within the City of Stillwater and the setting of fees for said license on July 5, 2011, which became effective on July 9, 2011; and WHEREAS, an application has been received requesting the issuance of a new on -sale brewer's tap room license on July 21, 2011; and WHEREAS, a public hearing on the issuance of new license was held on August 16, 2011; and WHEREAS, all required City forms have been submitted and fees paid. NOW THEREFORE, BE IF RESOLVED that the City Council of Stillwater, Minnesota, hereby approves the issuance of a Tap Room liquor license conditioned upon approval by Police, Fire, Building Inspection, and Finance Departments, Minnesota Liquor Control, the obtaining of any necessary approvals from the Washington County Department of Health, Department of Agriculture, and approval of brand registration from Liquor Control. Adopted by Stillwater City Council this 16 day of August, 2011. Ken Harycki, Mayor Attest: Diane F. Ward, City Clerk i I THE BIRTHPLACE OF MINNESOTA PLANNING REPORT DATE: APPLICANT: REQUEST: PUBLIC HEARING: REPORT AUTHOR: BACKGROUND August 3, 2011 City of Stillwater Amend Future Land Use Map CASE NO.: 2011 -04a Planning Commission - July 11, 2011 City Council - August 16, 2011 Bill Turnblad, Community Development Director'bC On June 1, 2010 the City's 2030 Comprehensive Plan was adopted. State law requires a City's Comprehensive Plan and its "official controls' to be consistent. Consequently, 369 properties were rezoned recently to be consistent with the Future Land Use Map of the Comprehensive Plan. However, for a dozen properties it was agreed by the property owners and the City to create consistency by amending Future Land Use Map and leaving the zoning as it is. SPECIFIC REQUESTS 1. Amend the Future Land Use Map of the Comprehensive Plan by changing the designation of all 10 lots on Linson Circle from MDR, Medium Density Residential to LMDR, Low/ Medium Density Residential. 2. Amend the Future Land Use Map of the Comprehensive Plan by changing the designation of property located at 1750 and 1778 Greeley Street South from Industrial to Commercial. EVALUATION OF REQUESTS The 10 properties located on Linson Circle'are all zoned RB, Two - Family Residential. Each lot has a duplex constructed on it, which is allowed in the RB Zoning District. The Comprehensive Plan's vision for this cul -de -sac is to encourage redevelopment from duplex to higher density housing, which would be consistent with much of the surrounding neighborhood. However, a number of the property owners on Linson Circle objected to the vision and would like the properties to be allowed to remain duplexes. The City agreed that this was acceptable and did not rezone the properties to RCM, Medium Density Residential. Page 2 of 5 Consequently, the RB zoning and MDR guiding are inconsistent. To resolve this, the City agreed to change the guiding to LMDR, Low/ Medium Density Residential. 2. The two properties at the corner of Curve Crest Boulevard and Greeley Street South (SE- TAC and the Gulf Gas Station) are zoned BP -C, Business Park Commercial. The uses on the two properties are consistent with this zoning. The Comprehensive Plans vision for this corner is to encourage redevelopment from commercial to industrial uses, which would be consistent with the properties south of Curve Crest Boulevard. However, the property owners would like the properties to be allowed to remain commercial. The City agreed that this was acceptable and did not rezone the properties to BP -I, Business Park Industrial. Consequently, the BP -C zoning and Industrial guiding are inconsistent. To resolve this, the City agreed to change the guiding to Commercial. ALTERNATIVES The City Council has at least the following options. 1. Approve the proposed Future Land Use Map amendments by adopting the attached resolution. 2. Deny the proposed Future Land Use Map amendments. 3. Table the case until the next Council meeting. Since the City is the applicant, there is no 60 day approval deadline to influence the proceedings. RECOMMENDATIONS Both the Planning Commission and city staff recommend approval of the proposed Comp Plan amendments. Attachments: Reference Table Current Zoning Future Land Use Map Page 3 of 5 Reference Table: Land Use Map Changes Future Land Use Proposed Designation Designation Zoning Existing Land Use Units Address Street Suff Suff Owner MDR LMDR RB RES 2 UNITS 2 1655 LINSON CIR Private MDR LMDR RB RES 2 UNITS 2 1605 LINSON CIR Private MDR LMDR RB RES 2 UNITS 2 1600 LINSON CIR Private MDR LMDR RB RES 2 UNITS 2 1635 LINSON CIR Private MDR LMDR RB RES 2 UNITS 2 1650 LINSON CIR Private MDR LMDR RB RES 2 UNITS 2 1640 LINSON CIR VALLEY GROUP LLC MDR LMDR RB RES 2 UNITS 2 1645 LINSON CIR EQUITY TRS CO MDR LMDR RB RES 2 UNITS 2 1630 LINSON CIR Private MDR LMDR RB RES 2 UNITS 2 1620 LINSON CIR Private MDR LMDR RB RES 2 UNITS 2 1627 LINSON CIR Private COMM COMM LAND & INDUS BPC BLDGS 0 1778 GREELEY ST S SE -TAC INDUS COMM BPC COMM LAND & 0 1750 GREELEY ST S LUCKY GAS BLDGS STATION Page 4 of 5 IS �Ilwaiter 12 Land Use Map Changes Current Zoning Zoning Districts O A -P. Agricultural Preservation O RA - Single Family Residertial Q RB - Ttvo Family Q TR. Traditional Residential 0 LR. Lakeshore Residential CR. Cottage Residential - CTR, Cove Traditional Residential CCR. Cove Cottage Residential - CTHR, Cove Townhouse Residential TH. Tovmhouse RCM - Medium Density Reslderial Q RCH - High Density Residential O VC. Village Commercial Q CA - General Commercial _ CBD - Central Business District Q BP -C. Business Park - Commercial ® BP -O. Business Park - Office SP -I. Business Park- Industrial IB - Heavy Industrial - CRD - Campus Research Development PA- Public Administration Q PROS - Park. Rec or Open Space Q Public Works Facility ROAD - Railroad WATER 13 � T r - � r � Subject properties _- Outlined in Cyan rr 1 gLV D ` T ,CURVE - - - - - -- Subject properties Outlined in Cyan X r S I .q I I VVV , 4 I 1 I i I i I � I 11.1 IS �Ilwaiter 12 Land Use Map Changes Current Zoning Zoning Districts O A -P. Agricultural Preservation O RA - Single Family Residertial Q RB - Ttvo Family Q TR. Traditional Residential 0 LR. Lakeshore Residential CR. Cottage Residential - CTR, Cove Traditional Residential CCR. Cove Cottage Residential - CTHR, Cove Townhouse Residential TH. Tovmhouse RCM - Medium Density Reslderial Q RCH - High Density Residential O VC. Village Commercial Q CA - General Commercial _ CBD - Central Business District Q BP -C. Business Park - Commercial ® BP -O. Business Park - Office SP -I. Business Park- Industrial IB - Heavy Industrial - CRD - Campus Research Development PA- Public Administration Q PROS - Park. Rec or Open Space Q Public Works Facility ROAD - Railroad WATER 13 Page 5 of 5 EA. .. I Subject properties c ) Change from MDR to LMDR L ', c•� r� ('URVL C) Subject properties Change from Indust7toCommercial LJ C -: F:- �G) ��I H- { CJ z' c C' C. .: 11wa-ter c —o.. 12 Land Use Map Changes Future Land Use Designation Future Land Use Categories Low Density Residential Low /Medium Density Residential Medium Density Residential High Density Residential Neighborhood Commercial Commercial _ Downtown Mixed Use - Research & Development Park Industrial Institutional Park. Rec. or Open Space - Marina n Road R -O -W Surface Water Wetland RESOLUTION NO. 2011- A RESOLUTION APPROVING COMPREHENSIVE PLAN LAND USE MAP AMENDMENTS CASE NO. 2011-04a WHEREAS, on June 1, 2030 the City Council adopted the 2030 Comprehensive Plan for the City of Stillwater; and WHEREAS, subsequent to the adoption of the 2030 Comprehensive Plan, the City initiated a public process to review whether the zoning for each property in the City was consistent with the Comprehensive Plan's Future Land Use Map, which resulted in the rezoning of 369 properties; and WHEREAS, during the public process for the consistency review, the owners of 12 properties requested that the City consider changing the Future Land Use Map to be consistent with the existing zoning of their properties, rather than changing the zoning of their properties to be consistent with the Future Land Use Map; and WHEREAS, the location of the 12 subject properties and their proposed new Future Land Use Map designations are illustrated in the attached map; and WHEREAS, on July 11, 2011 the Planning Commission held a public hearing to consider whether the request to change the Future Land Use Map on these 12 properties was appropriate, which it found them to be; and WHEREAS, on August 16, 2011 the City Council held a similar public hearing for the 12 properties and also found their proposed Future Land Use designations to be appropriate. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Stillwater hereby approves the Comprehensive Plan Amendments with the following conditions: 1. If the Metropolitan Council requires any significant modifications to the Comprehensive Plan amendments as proposed, then the Comprehensive Plan amendment shall be reconsidered by the City. 2. If the Metropolitan Council makes a finding that the Comprehensive Plan amendment has a substantial impact on, or contains a substantial departure from, any metropolitan systems plan, then the Comprehensive Plan amendment shall be reconsidered by the City. Enacted by the City Council of the City of Stillwater, Minnesota this 16' day of August, 2011. CITY OF STILLWATER Ken Harycki, Mayor ATTEST: Diane F. Ward, Clerk j 'vvE - T - - ORLEA S -TREET Subject properties Change from MDR to LMDR G; Cl) _; CURVE [ Subject properties r Change from Industrial to Commercial W Cl Fr C C: 1water 12 Land Use Map Changes Future Land Use Designation Future Land Use Categories Low Density Residential Low /Medium Density Residential Medium Density Residential High Density Residential C� Neighborhood Commercial Commercial - Downtown Mixed Use - Research & Development Park Industrial Institutional O Park. Rec. or Open Space - Marina Road R -O -W Surface Water Wetland MEMORANDUM TO: Mayor and City Council FROM: Torry Kraftson, Assistant City Engineer DATE: August 11, 2011 SUBJECT: Declaring Costs to be Assessed, Ordering Preparation of Assessment Roll and Calling for the Hearing on Proposed Assessment for the 2011 Street Improvement Project (Project 2011 -02) DISCUSSION: The contractor has completed paving 40% of the project area and plans to pave an additional 40% in the next 2 weeks. The remaining 20% (Wilkins St.) is scheduled to be constructed during last week of August and the first 2 weeks of September. The overall project cost is projected to be 3% below the feasibility study costs. It is proposed that the final assessments be lowered by 3 %. The cost of the galvanized water service replacement was 33% below the feasibility estimate and is proposed for reduction as shown in the table below. In order for the projects to be certified to the County this year, the assessment roll needs to be prepared and a hearing held. It is anticipated that the hearing will be held September 20, 2011. RECOMMENDATION Staff recommends that Council declare costs, authorize the preparation of the assessment rolls, and call for a hearing on the projects. ACTION REQUIRED If Council concurs with the recommendation, they should pass the following resolutions: I. RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENTS FOR THE 2011 STREET IMPROVEMENT PROJECT (PROJECT 2011 -02). 2. RESOLUTION CALLING FOR HEARING ON PROPOSED ASSESSMENT FOR THE 2011 STREET IMPROVEMENT PROJECT (PROJECT 2011 -02). Preliminary Assessment Proposed Final Assessment Wilkins Street $5,290 $5,130 Amundson/Oak area $3,800 $3,690 Mill single family area $1,960 $1,900 Mill townhouse area $980 $950 Galvanized water services $1,690 $1,125 In order for the projects to be certified to the County this year, the assessment roll needs to be prepared and a hearing held. It is anticipated that the hearing will be held September 20, 2011. RECOMMENDATION Staff recommends that Council declare costs, authorize the preparation of the assessment rolls, and call for a hearing on the projects. ACTION REQUIRED If Council concurs with the recommendation, they should pass the following resolutions: I. RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENTS FOR THE 2011 STREET IMPROVEMENT PROJECT (PROJECT 2011 -02). 2. RESOLUTION CALLING FOR HEARING ON PROPOSED ASSESSMENT FOR THE 2011 STREET IMPROVEMENT PROJECT (PROJECT 2011 -02). RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR 2011 STREET IMPROVEMENT PROJECT (PROJECT 2011 -02), L.I. #390 WHEREAS, a contract has been let and costs have been determined for the improvement of streets and the contract (bid) price for such improvement is $1,585,752 and the expenses incurred or to be incurred in the making of such improvement amount to $292,677 so that the total cost of the improvement will be $1,878,429. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF STILLWATER, MINNESOTA: 1. The portion of the cost of such improvement to be paid by the city is hereby declared to be $1,031,162 and the portion of the cost to be assessed against benefited property owners is declared to be $847,267. 2. Assessments shall be payable in equal annual installments extending over a period of ten (10) years, the first of the installments to be payable on or before the first Monday in January, 2011, and shall bear interest at the rate of (4 1 /2 %) four and one half percent per annum from the date of the adoption of the assessment resolutions. 3. The city engineer shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and shall file a copy of such proposed assessment in their office for public inspection. 4. The clerk shall upon the completion of such proposed assessment notify the council thereof. Adopted by the council this 16"' day of August 2011. Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk RESOLUTION CALLING FOR HEARING ON PROPOSED ASSESSMENT FOR 2011 STREET IMPROVEMENT PROJECT (PROJECT 2011 -02), L.I. #390 WHEREAS, by a resolution passed by the Council on August 16, 2011, the city clerk was directed to prepare a proposed assessment of the cost for the 2011 Street Improvement Project. The following is the area proposed to be assessed. Properties abutting Wilkins Street (Owens Street to First Street), Oak/Oakes Street (Highway 5 to dead end), Amundson Drive, Amundson Lane, Amundson Circle, Amundson Court, Amundson Place, Dallager Court, Fischer Circle, West Sycamore Street (Owens Street to Stonebridge Trail), North Center Street (Saint Croix Avenue to Sycamore Street and Linden Street to Meadowlark Drive), West Saint Croix Avenue (Owens Street to Center Street), West Linden Street (Echo Lane to Owens Street), Robin Lane, Meadowlark Drive, South McKusick Lane, Towne Circle, McKusick Road Lane North, West Orleans Street (Harriet Street to 4 th Street), Meadowview Drive, and West Stillwater Avenue ( Meadowview Drive to Owens Street), and WHEREAS, the clerk has notified the council that such proposed assessment has been completed and filed in the office for public inspection, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF STILLWATER, MINNESOTA: 1. A hearing shall be held on the 20th day of September, 2011 in the city hall at 7:00 p.m., or as soon as possible thereafter, to pass upon such proposed assessment and at such time and place all persons owning property affected by such improvement will be given an opportunity to be heard with reference to such assessment. 2. The city clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing, and shall state in the notice the total cost of the improvement. The clerk shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearings. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the county auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid by November 15 2011. He /she may at any time thereafter, pay to the City Treasurer; (in whole or in part) the remaining principal balance, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. Adopted by the City Council this 16' day of August 2011. Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk MUNICIPALITY: STILLWATER, MINNESOTA PROJECT NO.: 2011 -02 2011 Street Improvement Project L.I. NO. 390 PROJECT NAME ACCOUNT NUMBER EXPENDITURES: Actual Costs to Estimated Total Costs Date Completion Costs Construction Costs $439,851.00 $1,125,901.00 $1,565,752.00 Engineering Department ( Excluding Assessment Roll Preparation) Feasibility and Plans & Specifications $142,422.00 $142,422.00 Field /contract Administration $40,968.00 $77,200.00 $118,168.00 Consultin En ineer $2,600.00 $2,600.00 Fiscal A ents and Bondin Costs Legal Ci Attorney $1,435.00 $300.00 $1,735.00 Bond Attorney Private Proeertz Easements and Land Acquisition Administrative Costs Other Costs Postage Printing & Publishing $213.00 $120.00 $333.00 Other Professionals Misc. Water Board Costs Assessment Roll Preparation Engineering Department $500.00 $500.00 County $10,410.00 $10,410.00 Assessment Notice Publication Interest on Capital @ $16,509.00 Roll Ado ted Contingency $20,000.00 Grand Total $1,878,429.00 Amount to be Received from Special Assessments $847,267.00 Amount to be paid from capital projects funds $564,724.00 Amount to be paid from State Aid funds $466,438.00 MEMORANDUM To: Mayor and City Council From: Michel Pogge, City Planneo f Date: August 12, 2011 Re: Pedestrian Walkway Project DISCUSSION Plans and specifications for the Pedestrian Walkway Project are completed. The bid date will be Tuesday, September 27, 2011 at 2:00 P.M. with bids presented to Council at the October 4, 2011 meeting. RECOMMENDATION City Staff are recommending that Council approve the plans and specifications for the Pedestrian Walkway Project and order advertisement for bids for the project. ACTION REQUIRED If Council concurs with the recommendation, they should pass a motion adopting RESOLUTION 2011- APPROVING PLANS & SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR THE PEDESTRIAN WALKWAY PROJECT. APPROVE PLANS & SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR THE PEDESTRIAN WALKWAY PROJECT WHEREAS, pursuant to a resolution passed by the Council on December 7, 2010, City Staff has prepared plans and specifications for the Pedestrian Walkway Project and has presented such plans and specifications to Council for approval. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF STILLWATER, MINNESOTA: 1. The plans and specifications presented by the City Staff are hereby approved. 2. The City Clerk is ordered to prepare and cause to be inserted in The Gazette and in the Construction Bulletin an advertisement for bids upon the making of the improvement under the approved plans and specifications. The advertisement shall be published once in the Stillwater Gazette and in the Construction Bulletin, shall specify the work to be done, shall state that bids will be received by the City Clerk until Tuesday, September 27, 2011, at 2:00 p.m. at which time they will be publicly opened at City Hall by the City Engineer; will then be tabulated and will be considered by the Council at their next regular Council meeting on October 4, 2011, in the Council Chambers. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Clerk and accompanied by a cash deposit, cashier's check, bid bond or certified check payable to the Clerk for ten (10) percent of the amount of the bid. Adopted by the Council this 16th day of August 2011. Ken Harycki, Mayor Attest: Diane F. Ward, City Clerk Pedestrian Walkway —Tentative Schedule Stillwater, MN Date: August 10, 2010 August 10, 2011 Design Team to review 75% complete plans and specifications August 16, 2011 City Council Meeting: - Consider authorization to bid project August 24, 2011 Design Team to review 95% complete plans and specifications September 6, 2011 City Council Meeting: - Public Hearing on Park Sale and 1 Read of Ordinance - Consider Floodplain Variance - Water St Vacation September 7, 2011 Advertise Bids September 7, 2011 Submit for Building Permit September 20, 2011 City Council Meeting: - 2 " Read of Park Sale Ordinance September 28, 2011 Bid Opening — 2 PM at Stillwater City Hall October 4, 2011 City Council Meeting: - Award Contract - Notice to Proceed October 24, 2011 Tentative: Water St Inn Land Transfer to City of Stillwater June 30, 2012 Completion Date , � ' w water I 114E B:RiH PI.AC! 0i MINNE'a0TA Memo To: Mayor and City Council From: Tim Moore, Assistant Public Works Superintendent , Date: August 10, 2011 Re: New Playground Equipment for Triangle and Ramsey Grove Parks DISCUSSION Ramsey Grove playground structure is an existing Kompan wood structure. The existing structure was installed for age groups 2 -12. It has exceeded is useful life and is in need of replacement. Triangle park play equipment consists of a swing, slide and seesaw. Triangle Park equipment was approved for replacement by the Parks and Recreation Commission in May of 2008 and Ramsey Grove in May of 2011. Both playgrounds have been delayed due to uncertain budget. Staff has reviewed available structures on the State bid Contract and found that the Burke line of play structures are constructed of steel and high impact plastic that best suits the needs of the City for cost, design, longevity, durability and quality. Attached is a rendering of the playground structure for Ramsey Grove Park. St. Croix Recreation Co, Inc. has the State contract for Burke and has submitted quotes to furnish and install playground equipment at Triangle and Ramsey Grove for $35,256.72 and $49,345.59 respectfully. Staff has budgeted $100,000.00 for both parks. RECOMMENDATION Staff recommends Council authorize approval to enter into a contract with St. Croix Recreation Company, Inc. to furnish and install playground equipment at Triangle and Ramsey Grove Parks for $84,602.31 coming from CIP carry over. ACTION REQUIRED If Council concurs with staff recommendation Council should pass a motion approving a contract with St. Croix Recreation Company, Inc. to furnish and install playground equipment at Triangle and Ramsey Grove Parks for $84,602.31 APPROVE CONTRACT WITH ST. CROIX RECREATION COMPANY TO FURNISH AND INSTALL PLAY EQUIPMENT AT TRIANGLE AND RAMSEY GROVE PARK WHEREAS, a contract to install play equipment at Triangle and Ramsey Grove Park has been prepared between St. Croix Recreation Company and the City of Stillwater. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STILLWATER, MINNESOTA the Mayor and Clerk are hereby authorized to enter into a contract with St. Croix Recreation Company for the installation of play equipment at Triangle and Ramsey Grove Park, Adopted by the City Council of Stillwater this 11'' day of August 2011. Ken Harycki, Mayor Attest: Diane F. Ward, City Clerk Minnesota Board of Water and Soil Resources Performance Review and Assistance Program Level II Performance Review Report for the Middle St. Croix Watershed Manaaement Oraanization August 11, 2011 =aff Donald Buckhout, Coordinator Performance Review and Assistance Program Board Conservationist �1=� Melissa Lewis Metro Region (St. Paul) 520 Lafayette Road St. Paul, Minnesota 55155 Questions about this document should be directed to: Don.Buckhout @state.mn.us or 651- 296 -0768 LGU REVIEW DRAFT Middle St. Croix Watershed Management Organization Summary of Performance Review Results �C What BWSR Found - The MSCWMO has demonstrated good progress in implementing the action items from their water- shed management plan. They have gone beyond items in their plan to tackle and benefit from additional programs, such as an expanded education program and regional resource assessments under the metro -wide Landscape Restoration Project. The WMO meets many of BWSR's high performance standards, further indication of the organization's potential. In fact, this over - and- above functioning indicates that their current plan may no longer be ambitious enough to challenge the full capabilities of the organization. The WMO has clearly benefitted from local partnerships with neighboring resource management entities, such as the Washington Conservation District. With strong staff support for the ten very active and knowledgeable board members, they are an effective local water management entity in this area. Action Items (need immediate attention) • Functioning advisory committee: recommendations on projects, reports; 2 -way communication with Board • Consultant RFP: within 2 yrs for - professional services Commendations (show exemplary performance) Operating guidelines exist and current * Plan goals and objectives guide annual budgeting Water quality trends tracked for priority water bodies * Website contains meeting notices, agendas, minutes and is updated * Track progress for I &E objectives in Plan * Partnerships and cooperative projects with neighboring districts and organizations, counties, cities, non - governmental organizations, and * Coordination with county /city /township by board members or staff. BWSR recommends that the board accelerate their plan revision schedule and address their two action items. Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Introduction Introduction This is an information document prepared by the staff of the Board of Water and Soil Resources (BWSR) for the Middle St. Croix Watershed Management Organization ( MSCWMO) and the general public. The information in this document reports the results of a routine performance review of the MSCWMO's watershed management plan implementation and is intended to give the organization's board members constructive feedback they can use to capitalize on strengths and address areas needing improvement. The Performance Review and Assistance Program (PRAP) process is administered by BWSR for the purposes of performance improvement and assistance. Specific actions taken by BWSR in this process have included: review of the MSCWMO's reported accomplishments of watershed management plan goals and objectives, compliance with BWSR's Level I and II performance standards, and BWSR staff attendance at a board meeting to explain the process and monitor the board members'-discussion of plan implementation issues. It is neither a financial audit nor investigation and it does not replace or supersede other types of governmental review of local government unit operations. While the performance review reported herein has been conducted under the authority granted to BWSR by Minnesota Statutes Chapter 103B.102, this is a staff report and has not been reviewed or approved by the BWSR board members. Purpose The purpose of this Level Hperformance review is to determine the progress of the MSCWMO in accomplishing the goals and objectives of the watershed management plan and to assess their overall performance with respect to general performance standards for water and related land conservation planning and management. PRAP BaclLyround In January 2008 the Minnesota Board of Water and Soil Resources (BWSR) adopted a strategic plan with a mission statement to improve and protect Minnesota's water and soil resources by working in partnership with local organizations and private landowners. The strategic plan recognizes the essential role of the system of local governments, such as watershed management Minnesota Board of Water and Soil Resources Page I Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 organizations, in delivering the programs and projects that will accomplish this mission. One approach to making that local delivery system the best it can be is BWSR's implementation of a program authorized by the 2007 Minnesota legislature. Called the Performance Review and Assistance Program (PRAP), its purpose is to periodically review and assess the performance of local units of government that have land conservation and water management responsibilities. These include soil and water conservation districts, watershed districts, watershed management organizations, and the local water planning function of counties. BWSR has developed four levels of review and assistance, from routine to specialized, depending on the program mandates and the needs of the local governmental unit. A Level I review annually tabulates the local - governmental unit's compliance with basic planning and reporting requirements. In Level II, conducted by BWSR once every five years for each local government unit, the focus is on the degree to which the organization is accomplishing its long -range water management plan. A Level II review includes determination of compliance with BWSR's Level I and II statewide performance standards, a tabulation of progress on planned goals and objectives, a discussion among board members and staff of the factors affecting plan implementation, and a BWSR staff report to the organization with findings, conclusions and recommendations. BWSR's actions in Levels III and IV include elements of Levels I and ILand then emphasize assistance to address the local governmental unit's specific needs. The review of the Middle St. Croix Watershed Management Organization is one of seven Level II performance reviews that BWSR has conducted in 2011. This document reports the results of that review. Findings and Discussion The MSCWMO is a joint powers organization composed of ten St. Croix Valley communities and was established to cooperatively manage water resources within the watershed. The member municipalities and townships each appoint a member to represent them on the MSCWMO board. The member communities are: Afton, Bayport, Baytown Township, Lakeland, Lakeland Shores, Lake St. Croix Beach, Oak Park Heights, St. Mary's Point, 1 For more information about BWSR's Performance Review and Assistance Program see the 2011 Report to the Legislature at http: / /www.bwsr.state.mn.us/PRAP /index.html Minnesota Board of Water and Soil Resources Page 2 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Stillwater, and West Lakeland Township. (2006 Watershed Management Plan, p. v.) Part 1: Reporting Progress on Watershed Management Plan Implementation Part 1 of the PRAP performance review asks the local governmental unit to report accomplishments made to date on each of the action items from their long -range plan for which they have lead agency responsibility. BWSR provides a form for this purpose. This part of the performance review is based on the information in that document. (See Appendix A.) The MSCWMO operates under a watershed management plan that was approved and adopted in 2006. This plan identifies four major issues of concern for the watershed: runoff and stormwater, erosion and sediment control, wetlands, and education and public outreach. The plan identifies 25 implementation activities (action items) for the MSCWMO to pursue in order to address these issues. According to information provided by the MSCWMO, they have addressed all 25 of the action items from the plan. Three action items have been completed, 18 are on- going, three were considered and not pursued, and one is not yet due for implementation. In addition, the WMO provided information about 3 new actions items they are working on that are over -and- above those listed in the watershed management plan. These action items were developed since the plan was adopted. The three action items that the MSCWMO has declined to implement were given consideration by the board. The first two involve total maximum daily load (TMDL) studies for Lily and McKusick Lakes. In both cases, local communities and the Minnesota Pollution Control Agency decided to postpone these studies. The third action that the board considered and then dropped related to taxing authority for the MSCWMO. The pending action item not yet due for implementation identifies the need for a new watershed management plan by 2015. This item has been addressed to the extent that the WMO is saving funds to pay for the plan revision. In addition to the objectives in their own watershed management plan, the MSCWMO has adopted the objectives for groundwater management from the 2003 -2013 Washington County groundwater plan. Twenty -one of the implementation actions in the plan identify WMOs as having either lead agency or supporting responsibility. These implementation actions and the MSCWMO's accomplishments for each are reported on the Part 1 form in Appendix A. All of the actions are identified as on -going during Minnesota Board of Water and Soil Resources Page 3 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 the 10 -year duration of the plan. The MSCWMO reports partial progress on 13 actions, little or no progress on seven actions, and one action that is not applicable. (See Part 3 discussion below for board members' assessment of their groundwater management responsibilities.) Part 2: Charting Performance Against Standards This part of the performance review measures the MSCWMO's compliance with a set of performance standards that BWSR has identified for all watershed management organizations. The standards are designed to be indicative of the overall performance of the organization in four general areas of operation: administration, planning, execution, and communication and coordination. The standards are classified according to two performance levels: basic, which all WMOs would be expected to meet, and high, which list advanced practices that not all WMOs are expected to meet and can serve as stretch goals for making performance improvements. Non - compliance with a basic standard results in a recommended action item in this report. Compliance with high performance standards is recognized by BWSR as commendable and is noted as such in this report. The specific results for the MSCWMO are in Appendix B. In general the MSCWMO meets the majority of the basic and high performance standards that apply. As part of the annual Level I PRAP review of all water management entities BWSR tracks compliance with 3 of the WMO basic standards: up -to -date watershed management plan, annual activity report, annual financial report and audit. Level I data for the past four years show that the MSCWMO has perfect compliance with these three performance standards. In addition, the basic standard for "total expenditures per year" shows that the MSCWMO expenditures have been consistent with the plan and sufficient to implement the plan goals. Additionally, the MSCWMO has been successful in receiving grants which has resulted in significantly increased expenditures and implementation above and beyond during the past 10 years. Two of the basic standards the MSCWMO does not currently meet need to be addressed. These are the requirement for biennial issuance of a request for proposals for consultant services (e.g., legal, administrative) and the requirement to maintain an active advisory committee. These standards are based on statute and rule. The next sections contain BWSR's recommendations regarding how the MSCWMO should address these two standards. Minnesota Board of Water and Soil Resources Page 4 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 The MSCWMO meets seven of BWSR's high performance standards for WMOs. These standards are in all four areas of operation. Compliance with high performance standards is noted as commendations in the next section. Part 3: Identifying Success and Confronting Challenges Information for this part of the performance review is from MSCWMO board members' verbal responses to a series of standard questions developed by BWSR to identify the board's general sense of how well they are proceeding with plan implementation. The summary of that discussion, which was conducted during the June 9, 2011 MSCWMO board meeting, is contained in Appendix C. The MSCWMO board members reported that they have made good progress in the area of public outreach/communications, which has resulted in significant interest in the MSCWMO's cost share program. This progress is attributed to the East Metro Water Resources Education Program (EM)AIREP) and general responsiveness to the public. Additional-progress has been made on their project review program and partnerships with the members. The MSCWMO is also seeing improvements in water quality in McKusick Lake. The board is proud of their significant accomplishments with a relatively low investment. Board members reported the most difficulty with addressing their plan's groundwater objectives. As noted in the Part 1 discussion, groundwater action items are dictated by the county's groundwater plan for which the MSCWMO is one of several implementing entities. Board members acknowledge that groundwater issues are difficult to address at the local government level and require a partnership with state and regional government agencies. The board does not often directly assess progress towards planned objectives at monthly meetings. However, the administrator does provide the board with monthly progress reports on programs and activities. Progress towards planned objectives is discussed between the board chair and administrator a few times per year. The board members did not identify any unforeseen problems that hindered their implementation of plan objectives, but rather many opportunities they were able to take advantage of to enhance their water management activities. Most of these opportunities have come to the WMO due to their working relationship with the Washington Conservation District. Participation in the Minnesota Board of Water and Soil Resources Page 5 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 subwatershed assessment program has made the WMO more successful in obtaining Clean Water Fund (CWF) grants. The factors, both positive and negative, that board members identified as having the most impact on their successes and shortcomings are: (positively) relationship with the Washington Conservation District (WCD) and EMWREP; board members have public official experience and diverse backgrounds in solving and preventing problems; strong administrator; an internal and external culture of collaboration; the general population of the MSCWMO has a good understanding of the MSCWMO and water quality projects; and (negatively) budget limitations with the current funding mechanism and concern about the potential cost of the next plan update. Board members requested BWSR's assistance with identifying gaps and amending their watershed management plan. Conclusions: Action Items and Commendations This section contains BWSR's conclusions about the performance of the Middle St. Croix WMO and lists any action items or commendations. The MSCWMO has demonstrated good progress in implementing the action items from their watershed management plan. They have gone beyond their plan to tackle and benefit from additional programs, such as EMWREP and the regional resource assessments -under the metro -wide Landscape Restoration Project. The WMO meets many of BWSR's high performance standards, further indication of the organization's potential. In fact, this over - and- above functioning indicates that their current plan may no longer be ambitious enough to challenge the full capabilities of the organization. (See Recommendation l.) The WMO has clearly benefitted from local partnerships with neighboring resource management entities, such as the WCD and the fairly extensive education/outreach program of the EMWREP. Finally, with strong staff support for the 10 board members, who are very active both with the WMO and in their communities and serve a relatively small and fairly engaged population, they are an effective local water management entity in this area. Action Items Action items are operational requirements from statute or rule that need immediate attention by the board. There are two action items for the MSCWMO to address: Minnesota Board of Water and Soil Resources Page 6 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Commendations • Activation and engagement of an advisory committee mechanism • Issuance of professional services consultant RFPs See Recommendation 2. The MSCWMO is commended for meeting these high performance standards. • Operating guidelines exist and current • Plan goals and objectives guide annual budgeting • Water quality trends tracked for priority water bodies • Website contains meeting notices, agendas, minutes and is updated • Track progress for I &E objectives in Plan • Partnerships and cooperative projects with neighboring districts and organizations, counties, cities, non- governmental organizations, and • Coordination with county /city /township by board members or staff. Recommendations This section contains recommendations offered by BWSR to the MSCWMO board members to ensure compliance with operating standards and to enhance the organization's service to the stakeholders of the watershed and its pursuit of effective water and related -land resource management. The recommendations are based on BWSR's evaluation of the performance of the organization as described in the previous sections. Recommendation 1. Update the Watershed Management Plan Although the MSCWMO's watershed management plan is intended to extend through 2014, the board members should begin their plan update process now. The success of the WMO in securing grants, representing a fourfold increase in expenditures between 2007 and 2009, is one example of new opportunities for program and project implementation that were not completely envisioned in the 2006 plan. An updated plan would also give the WMO an opportunity to reallocate priorities and decide how best to address the more challenging issues, such as the TMDLs and groundwater management. Recommendation 2. Address performance standard action items. Minnesota Board of Water and Soil Resources Page 7 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 The two action items should be addressed within the next few months. If the board goes ahead to authorize an accelerated plan revision schedule, there would be an opportunity to take advantage of the re- established advisory committee(s) in the plan update process. Advisory committee members could assist the board in identifying and setting priorities. Other mechanisms for meeting the advisory committee requirement through existing local government citizens' groups may exist. BWSR staff can assist with setting BWSR acknowledges that the on -going relationship between the WMO and the Washington Conservation District makes the solicitation of proposals for administrative services, as required by Minnesota Statutes Sec. 10313.227 Subd. 5, seem superfluous. However, this requirement must be met for all annual service agreements and appropriately recorded in the minutes of the organization. LGU Response A written response to this draft report from the MSCWMO is invited and will be summarized and responded to in this section and reproduced in its entirety in Appendix D of the final report. Minnesota Board of Water and Soil Resources Page 8 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Amendices A. PRAP Plan Implementation Progress Table (Part 1) B. PRAP Watershed Management Org. Performance Standards (Part 2) C. PRAP Discussion Questions and Responses (Part 3) D. Middle St. Croix WMO Response letter comments ([date]) E. Program Data: Time required to complete this review Schedule of Level II Review Minnesota Board of Water and Soil Resources Page 9 Performance Review and Assistance Program Middle St. Croix WMO DRAFT Level II Report August 11, 2011 Appendix A. Progress on Plan Action Items How to Use this Form: LGUs may use this form to report progress toward management plan goals and objectives or may substitute their own report that contains comparable information. The terms Goal, Objective and Actions /Results are generic and refer to typical plan structure elements from general to specific. Those fields on this form should be filled with information directly from the plan. Timeframe columns should be filled with dates when the Action was proposed for implementation and when it was actually implemented, if that has occurred. Cut and paste or delete action tables as necessary. LGU Name: MSCWMO Date of This Assessment: 7/28/11 Type of Management Plan: Watershed Management Plan Date of Last Plan Revision: 2006 Goal /Objectives: INVENTORY AND ASSESSMENT OF WETLAND RESOURCES MNRAM Planned Actions or Results Proposed Actual Accomplishments to Date Progress Next Steps Complete a MNRAM assessment 2005 2005 MSCWMO completed a Consider updating of wetlands within the MSCWMO completion completion MnRAM study for wetlands MNRAM study within the MSCWMO with next plan Goal /Objectives: Development of land cover /land classification for the MSCWMO using MLCCS Planned Actions or Results Proposed Actual Accomplishments Date Progress Next Steps Complete MLCCS mapping for 2005 -2006 2007 MSCWMO teamed with Consider updating land area within the MSCWMO completion Washington County to complete MLCCS as part of MLCCS mapping for the land next plan update. area with the WMO. Goal /Objectives: Best Manaizement Practices Prouram Minnesota Board of Water and Soil Resources Page 10 Performance Review and Assistance Program Middle St. Croix WMO DRAFT Level II Report August 11, 2011 Implement a BMP (or cost -share 2006— 2007- Cost share dollars have increased O Continue to program) for residents living ongoing ongoing from $10,000 to $11,500, develop the BMP within the MSCWMO approximately ten projects are program, increase approved and installed each year. project im lementation Goal /Objectives: Integrated water monitorin Work with Washington Annually Annually MSCWMO annually monitors O Conservation District to Lily Lake, McKusick Lake, Perro implement a water quality Creek, Brick Pond and two monitoring program points within the McKusick Lake tributary Goal/Objectives: Lily Lake TMDL study/McKusick Lake TMDL studv Complete a TMDL study for Lily 2007 start and McKusick Lake to address excess nutrients Not started The MNPCA, the City of Stillwater, Brown's Creek WD and MSCWMO have agreed to postpone the TMDL study as several studies and implementation plans have already been completed for the two water bodies, the water quality of the two lakes is either static or immovina Integrate a BMP effectiveness component to the existing water monitoring O Continue implementation of recommended projects to improve water quality, reevaluate need for TMDL in two years Minnesota Board of Water and Soil Resources Pagel l Performance Review and Assistance Program Middle St. Croix WMO DRAFT Level II Report August 11, 2011 Goal / Obiectives: Working with communities to bring WO standards un to WMP goals Planned Actions or Results Proposed Actual Accomplishments Assist communities in 2005 start Ongoing Work with member communities O Continue implementing the MSCWMO's to outline process to ensure 2006 WMP qualifying projects are reviewed by the MSCWMO. Assist communities with update to 2005 start Ongoing Ordinances needing to be O Continue existing ordinances to address updated were listed in each water quality communities LSWMP update. Assist communities with updates 2005 start Ongoing All member communities have Continue to their Local Surface Water completed LSWMP updates. Management Plans Goal /Objectives: Incorporation of St. Croix River Basin Planning Team (SCBPT) nutrient reduction strategies into MSCWMO goals Ensure WMP goals are in line Dependent Ongoing Current WMP includes strategies O with nutrient reduction goals for on SCBPT for educting nutrient inputs to the SCBPT St. Croix, performance standards are applied. to all qualifying broiects Goal: Establishment of Flood0ain elevations Project applicant should submit Ongoing Ongoing Hard copies of floodplain O floodplain elevations when elevations have been submitted NOT applicable when applicable, minimal complete electronic data submitted Continue and update with available information Continue, refine request and effort Minnesota Board of Water and Soil Resources Page 12 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Goal /Objective: Establishment of Erosion and Sediment Planned Actions or Results Proposed Actual Monitor qualifying projects for 2006, Ongoing compliance with erosion and ongoing sediment control performance standards Goal /Objective: Communication in local newsna Qualifying projects are required to submit an erosion and sediment control plan following WMP performance standards. Project sites are monitored for compliance durine construction. d newsletters O Continue and refine as development activity increases Communicate with residents via Annually Ongoing MSCWMO has become a O newspaper and newsletters member of EMWREP, multiple communications are published each vear thought this brocram. Goal/Obiective: Technical Fact Sheets for BMPs Create or make available technical 1 2006, 2010 I Ongoing fact sheets for BMPs Multiple fact sheets are available O through our partnership with the Washington Conservation District. Several fact sheets were also developed as part of the stormwater audit pilot program recently completed. Continue Continue to create and refine material Minnesota Board of Water and Soil Resources Page 13 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Goal /Ob.jective: Workshops and seminars for developers /consultants /local Offer workshops and seminars for 2007 Annually, As a member of EMWREP, O developers, consultants, etc. annually ongoing MSCWMO partners with other communities and watershed to offer a number of trainings each vear. Goal /Objective: Regular attendance at member communities' city or town meetings and advisory boards Attend meetings of member Ongoing, Ongoing, communities' multiple multiple times per times per vear vear Administrator attends meetings as requested. 0 Continue, develop new programs in demand Continue to attend as needed. Goal /Objective: Presentations to member communities i Planned Actions or Results Proposed Actual Keep member communities 2007 2007, informed about water related Annually ongoing issues water issues WCD staff and others make multiple presentations each year to 10- member board representing each member community. Presentations are given and member community meetings as requested or necessary. O Continue to provide member communities with information. Minnesota Board of Water and Soil Resources Page 14 Performance Review and Assistance Program Middle St. Croix WMO DRAFT Level II Resort August 11, 2011 Goal /Objective: Demonstration Sites of Innovative BMPs for local communities, officials, etc. Assist with design and 2007, installation of several BMPs Annually as demonstrations for member communities. 2007, Demonstration sites have annually /ongoing been designed in built in multiple member communities, the board has now agreed to cease funding demonstration sites and complete design and installation work in target areas. O Cease installation of demo sites unless something innovative needs testing. Focus on targeted implementation. Goal /Objective: Website Maintain a website displaying 1 2005, information as required annually 2005, MSCWMO has maintained a ongoing website since 2005. MSCWMO is currently building a new, more user friendly website that will display a wide array of WMO related information O Complete website update and maintain. Goal /Objective: Update Joint Powers Maintain and update the JPA as As needed needed As needed I JPA was last updated in 2006 O I JPA may require update along with Minnesota Board of Water and Soil Resources Page 15 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Goal /Ob Review Process will be incorporated into a dstin ci and twp review process Planned Actions or Results Proposed Actual Accomplishments to Date Progress Next Steps Incorporate review process into 2006 2006- The MSCWMO continues to O Continue to work existing City process present improve upon its review process. with member All communities were required to communities to outline the review process in their improve upon LSWMP update. All member review process. communities are aware of process and are working with WMO to continue to improve. Goal / Obiective: Annual Submit an annual activity report I Annually to BWSR each year Goal /Objective: Development Plan Annually MSCWMO submits an annual report to BWSR and Enforcement MSCWMO works with member As needed As needed communities to review project applications, inspect construction sites and enforce when necessary MSCWMO continues to review qualifying projects and coordinates with member communities to ensure inspections are completed and enforcement actions are taken when necessary. EN 0 Continue and follow BWSR P-uidance. Continue to review and implement standards. Minnesota Board of Water and Soil Resources Page 16 Performance Review and Assistance Program Middle St. Croix WMO DRAFT Level II Report August 11, 2011 Goal/Obiective: Gully Inventory 2006 2006 -2007 MSCWMO completed a gully Continue to inventory in 2006, 2007. One complete stabilization project has been stabilization work. completed to date. Goal /Objective: Taxing Authori Proposed Actual Progress Planned Actions or Results Pursue taxing authority Accomplishments to Date Next Steps 2005 N/A MSCWMO does not plan to O Continue to work pursue taxing authority. with communities MSCWMO has explored special to develop special taxing districts, which can be put taxing districts, to in place by member communities collect annually to avoid double taxation. community fees. Goal /Objective: Next Generation Water Management Plan Planned Actions or Results Proposed Actual Accomplishments to Date Pro Next Generation WMP 2015 2014/2015 MSCWMO has saved funds each NA year to put towards a plan update. $60,000 of $100,000 has been set aside. Work with BWSR to begin plan update. Minnesota Board of Water and Soil Resources Page 17 Performance Review and Assistance Program Middle St. Croix WMO DRAFT Goal /Objectives: Amendments to Plan Level II Report August 11, 2011 Amend Plan as necessary As needed As needed One plan amendment was O 1 Work with BWSR completed to clarify language. I on total plan Goal /Objective: Implementation Actions, 2003 -2013 Proposed Washington County Ground Water Plan Actual Progress Planned Actions or Results 1 Research Land Use Impacts on 2006- Accomplishments to Date 2006- MSCWMO participated in the O Next Steps Continue to utilize Ground Water Quality and ongoing ongoing Washington County findings of the Quantity Conservation Plan modeling modeling effort. effort which identified land area that if developed could have a significant effect on groundwater q uality and quantity. 2 Land Use - Technical 2006- 2006- MSCWMO has advised cities O Continue to guide Consultation for Land Use ongoing ongoing against installing stormwater communities as Decisions treatment facilities in areas near needed. septic systems. MSCWMO has also followed MN stormwater manuals guidance in groundwater pollution hotspots, such as gas stations. 3 Land Use - Groundwater Supply 2006- 2006- MSCWMO participated in the O Continue Sustainability ongoing ongoing Washington County Conservation Plan modeling project, which identified upland depressional areas, which replenish groundwater supply. Minnesota Board of Water and Soil Resources Page 18 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Minnesota Board of Water and Soil Resources Page 19 The MSCWMO works to protect these areas. 4 Land Use - Integrating 2006- 2006- The MSCWMO recognizes the O Continue, work Groundwater Protection into ongoing ongoing 2003 County Groundwater Plan through update Comprehensive Plans, Zoning in its 2006 WMP, and works with County. Ordinances and Decisions towards the goals outlined in the plan 5 Research Groundwater Impacts 2006- 2006- The MSCWMO 'is currently O Continue and from Agriculture, Turf ongoing ongoing participating in an Agricultural expand Management and Animal Wastes modeling project to identify areas with high P inputs to the St. Croix. Animal Feedlots are identified as part of this study. 6 Exert Political Influence on 2006- 2006- MSCWMO has not completed ❑ Agricultural related legislation or ongoing ongoing work in this area. rules 7 Agency Implementation and 2006- 2006- MSCWMO has provided O Continue coordination of well head ongoing ongoing communities with guidance in p rotection programs this area when needed 8 Community education, posting 2006- 2006- MSCWMO has completed ❑ of wellhead protection areas, and ongoing ongoing limited work in this area inter-community coordination 9 Well sealing financial incentives 2006- 2006- MSCWMO has directed member O Continue and cost - sharing ongoing ongoing communities to cost -share incentives offered through the WCD for well sealing. The City of Lakeland has worked with this program to seal wells in their community. 10 Water Supply Assessment- 2006- 2006- MSCWMO works to protect O Continue Research Water Supply ongoing ongoing Groundwater Dependent Natural Minnesota Board of Water and Soil Resources Page 19 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Sustainability and Affects on Resources within the WMO Natural Resources 11 Groundwater Appropriations- 2006- 2006- No commenting on ❑ Permitting Commentary ongoing ongoing appropriations permits has occurred 12 Groundwater Conservation 2006- 2006- Evaluation of community water ❑ Plans- Assessing Effectiveness- ongoing ongoing conservation plans has not been Assisting communities completed, 13 Groundwater Appropriations- 2006- 2006 - MSCWMO does not have rules NA Rules Protecting Natural ongoing ongoing regulating how much water can Resources be used. 14 Groundwater Conservation- 2006- 2006- Minimal work completed. ❑ Reducing Consumption and ongoing ongoing Recyclin 15 Groundwater Conservation- 2006- 2006- MSCWMO completed the O Community Water Use Reduction ongoing ongoing stormwater audit program, which Education discussed proper use of irrigation systems, and the use of items such as rain barrels to reuse rainwater. 16 Use of Non - potable 2006- 2006- Minimal work done ❑ Groundwater ongoing ongoin 17 Groundwater Contamination 2006- 2006- The Stormwater Audit program O Education ongoing ongoing provided education to residents on how to prevent groundwater pollution and proper disposal methods. 18 Research Groundwater and 2006- 2006- MWCWMO participated in the O Surface Water Functions ongoing ongoing 2005 County Groundwater Stud 19 Groundwater Recharge Area 2006- 2006- MSCWMO has done minimal ❑ Management ongoing ongoing work in re ulation development Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Items Below are Above and Beyond Those Listed in Table 6.2 of the 2006 WMP in this area Goal /Objective: Targeted BMP installation 20 Groundwater Surface Water 2006- 2006- MSCWMO is a member of O Continue Interaction Education ongoing ongoing EMWREP, many of these issues 2010- 2010- Subwatershed assessments have NA Begin second phase assessments to direct project are addressed during educational ongoing been completed for Lily Lake of project implementation p resentations installation 21 Develop Runoff Quality and 2006- 2006- MSCWMO has performance O Continue and volume control rules. ongoing ongoing standards in place that address enhance implementation beginning — will water quality and quantity. result in installation of 23 Items Below are Above and Beyond Those Listed in Table 6.2 of the 2006 WMP Goal /Objective: Targeted BMP installation Planned Actions or Results Proposed Actual Accomplishments to Date Progress Next Steps Complete urban subwatershed 2010- 2010- Subwatershed assessments have NA Begin second phase assessments to direct project ongoing ongoing been completed for Lily Lake of project implementation and McKusick Lake in installation Stillwater. Recent CWL grant following for Lily Lake secured, project recommendations implementation beginning — will result in installation of 23 rain gardens. Complete Rural Subwatershed 2010- 2010- Initial modeling complete, NA Apply for project Assessment to direct project ongoing ongoing fieldwork to begin shortly. installation funds, implementation in rural parts of install projects as WMO possible Work with member communities 2012- 2010-2012 Additional grant funding has NA Continue to obtain on streets projects to enhance ongoing been secured for work in the city additional funding stormwater treatment (beyond of Stillwater, Bayport) on street when possible to MSCWMO requirements) reconstruction projects. enhance treatment on street projects Indicator symbol for accomplishments: ❑= target not met O= target partially met += target met Minnesota Board of Water and Soil Resources Page 21 Performance Review and Assistance.Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Appendix B. Watershed Management Organization Performance Standards LGU Name: MIDDLE ST. CROIX W Performance Standard Level of Review Rating U E ■ Basic practice or Statutory requirement I Annual Compliance Yes, No, , `o Q * High performance (optional) standard 11 BWSR Staff Review & or Value Q (see instructions for explanation of standards) Assessment (1/5 yrs) YES NO ■ Activity report: annual, on -time I X r ,;< ■ Financial report & audit completed on schedule I X ■ Consultant RFP: within 2 yrs for professional services II )( ■ Personnel policies: written and reviewed /updated within last 5 yrs 11 N/A ■ Data practices policy: reviewed/updated within last 5 yrs II X Board training: orientation and cont ed record for each board II X member �s * Staff training: orientation and cont ed record for each staff member II N/A * Operational guidelines exist and current II X UR ■ Watershed Management Plan: up-to -date I X �— ■ Capital Improvement Program: reviewed every 2 yrs II N/A ■ City /twp. local water plans not yet approved II 0% ylr Plan goals and objectives guide annual budgeting II X Total expenditures ■ p per year (past 10 yrs)- II see below * Water quality trends tracked for priority water bodies II X Ar Watershed hydrologic trends monitored / reported :mow II X Website: contains annual report, financial statement, board ■ members, contact info, watershed mgmt plan 1 X Functioning advisory committee: recommendations on projects, Mgt: ■ reports; 2 -way communication with Board 11 X ■ Communication piece: sent within last 12 months 11 X Website: contains meeting notices, agendas & minutes; updated * after each board mtg; additional content I I X yE Track progress for I & E objectives in Plan II X * Obtain stakeholder input: within last 5 yrs II X Partnerships: cooperative projects /tasks done with neighboring r,� * districts and organizations, counties, cities, non - governmental II X organizations Coordination with County /City/Twp by WMO Board members or II X staff 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 4,736 14,044 11,257 32,918 42,659 61,124 56,424 72,181 93,801 262,446 Minnesota Board of Water and Soil Resources Page 22 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Appendix C. PRAP Discussion Questions and Responses (Part 3) BWSR PERFORMANCE REVIEW AND ASSISTANCE PROGRAM Level II Review: Assessing Progress Toward Plan Objectives Name of LGU: Middle St. Croix Watershed Management Organization Contact Person: Amy Carolan Part 3: Discussion Questions How to use this form: Consult with BWSR PRAP coordinator or BC to schedule a special meeting or designate time at a regular board or water plan task force meeting to discuss the items on this form. It is best if board members have reviewed their water management plan goals and objectives prior to this discussion. The BWSR board conservationist and PRAP Coordinator will attend the meeting to explain the overall performance review process and observe the discussion. Your answer to each of the following questions should be based on discussion among board or committee members and principal staff and should reflect the consensus of those people. Return the completed form in electronic format to the BWSR PRAP coordinator. Remember: your responses on this form become public information. 1. How often does your board /committee review your plan or assess progress on planned objectives? Administrator Carolan reviews the plan with Chair Beaudet as needed. Items will be brought to the Board when necessary. Administrator Carolan also provides an Administrator's Report at the monthly meeting. A recap of the annual BMP projects is also presented. As well as an annual report of water monitoring information. 2. Where has your organization made the most progress in implementing your long -range plan objectives in the past few years? To what do you attribute that progress? Cost -share program. Public outreach/education/public involvement, partially contributable to the EMWREP program. Water quality has improved dramatically. We are accomplishing a lot for the budget that we currently have. Much progress in our project review program. Our partnerships have grown. 3. For which plan objective(s) has your organization had the most difficulty making progress? What are the most likely reasons for this lack of progress? Groundwater portion of our plan — it is less tangible. To partner with a well testing group would be helpful. Perhaps groundwater is too big of an issue for local governments to handle. 4. Since the plan was completed, have there been any unforeseen opportunities or problems that have influenced your board's /committee's decisions about which objectives to pursue? Explain those influences. Minnesota Board of Water and Soil Resources Page 23 Performance Review and Assistance Program Level II Report Middle St. Croix WMO DRAFT August 11, 2011 Getting funding for BMP projects for communities. The relationship between the WMO and WCD has been very helpful in implementing projects. Subwatershed Assessments were completed and have been very helpful for CWL grants. 5. What are the five most significant factors that are affecting (positively or negatively) your organization's ability to implement your planned objectives? a. Collaboration between the cities represented on the Board, and BCWD. For example, Afton - Lakeland Gully. Also, the collaboration with the WCD and the County. a. EMWREP b. Good. Administrators c. Experienced Board of all elected officials d. Additional funding would be helpful e. The understanding and support of the public. f. We could use assistance on the plan itself. Especially to update it for a lesser cost. 6. For which of the factors listed in #5 would your organization like some assistance for either taking better advantage of positive factors or overcoming negative factors? Identify the type of assistance that would be most helpful. Having BWSR review our plan to see what could be missing. BWSR does recommend having stakeholder input. Minnesota Board of Water and Soil Resources Page 24 Performance Review and Assistance Program Level 11 Report Middle St. Croix WMO DRAFT August 11, 2011 Appendix D. Middle St. Croix WMO Response letter comments ([date]) Minnesota Board of Water and Soil Resources Page 25 DISTRICT MANAGER CUSTOMER SERVICE AND SALES NORTHLAND DISTRICT �� UNITEDSTATES /I POSTAL SERVICE Honorable Ken Harycki Mayor of Stillwater 2004 Hazel Ct. Stillwater, MN 55082 Dear Mayor Harycki: A -1 <�, 1 , r AUG '22011 The Postal Service has evaluated our facility needs and is pursuing the relocation of the Stillwater, MN Post Office located at 102 P St, Stillwater, MN 55082 -9998. As a self - supporting organization that receives no tax dollars for operations, we must pursue fiscally - responsible business practices. This includes consolidation of operations where appropriate, to increase efficiency and reduce costs. Based on national criteria, the Postal Service has identified the Stillwater Main Post Office as a facility that has more space than the Postal Service currently needs. Declining mail volumes and dramatic changes in the way mail is processed and delivered have occurred over the last several years. This has decreased the amount of physical space needed to provide postal service to the residents of Stillwater, Minnesota. We intend to solicit for space of approximately 3,055 net square feet on a suitable site. The Postal Service desires to work closely with you and the community to achieve a mutually beneficial postal facility for the Stillwater community. We request your input and concurrence with our plans prior to the solicitation process. We welcome your timely suggestions and comments as we initiate this project and as it proceeds. Please address any questions or concerns to: GARRY MATTOX REAL ESTATE SPECIALIST UNITED STATES POSTAL SERVICE 7500 East 53` Place, Rm 1108 DENVER CO 80266 -9918 Thank you for your participation as this process continues. Sincerely, 4 iams Will nager l9m 100 S 1 ST ST RM 409 MINNEAPOLIS MN 55401 -9990 (612) 349 -3500 FAx: (612) 349 -6377 Summary of Proceedings Washington County Board of Commissioners July 12, 2011 Present were Commissioners Dennis C. Hegberg, District 1; Bill Pulkrabek, District 2; Gary Kriesel, District 3; Autumn Lehrke, District 4; and Lisa Weik, District 5. Absent none. Board Chair Kriesel presided. Commissioner Reports — Comments — Questions The Commissioners reported on the following items: - Commissioner Weik — reported she attended the Metro Emergency Services Board meeting which voted on the proposed 2012 budget; and she attended the Metropolitan Energy Policy Coalition; - Commissioner Lehrke — reported she attended the Cottage Grove City Council meeting; met with the Youth Service Bureau and Community Corrections; and she attended the Counties Transit Improvement Board GEARS committee; and she will be attending the National Association of Counties conference next week; Commissioner Hegberg — reported he attended the public hearing on transit services in Minneapolis; he attended the Forest Lake City council meeting which passed a resolution to dissolve their Housing and Redevelopment Authority; he attended the Minnesota Counties Intergovernmental Trust which reported that the rates will be declining on Worker's Comp and Property insurance; - Commissioner Kriesel — reported that the Disabled Veteran's Rest Camp will hold their quarterly Yellow Ribbon Network of Washington County meeting. Community Services Adoption of Resolution No. 2011 -085, recommendation to the Minnesota Department of Human Services for the selection of managed care organizations to provide services to Washington county residents enrolled in some publicly funded health care programs. General Administration Approval of the following actions: - June 21, 2011 County Board meeting minutes; - Cancel the County Board meeting of July 19, 2011, due to a lack of a quorum; - Contract w /Dorothy Gause for legal services for Children in Need of Protection and Termination of parental Rights cases; - Yellow Ribbon Network recognized for raising $2,700 to provide three buses to transport National Guard family member to Fort McCoy in Wisconsin for a send of that was held for 2,400 Minnesota troops who would soon be deployed to Iraq; - Review of proposed actions that may be taken in response to the State shutdown; - Board correspondence was received and placed on file. County Library Board workshop held to discuss options for Library open hours. Public Works Approval of the following actions: - Resolution No. 2011 -079, final payment for Phases 2 -4 contracts on the 2025 Government Center Campus Improvement Project with Brothers Fire Protection Company, $37,498.95, County Materials Corporation, $53,473, and Glewwe Doors, Inc., $33,452.20; - Change Order #8 to contract with Parsons Electric, LLC, as part of the 2025 Government Center Campus Improvements project, in the amount of $33,048.72; - Change Order #6 to contract with Advance Terrazzo & Tile Company, Inc.as part of the 2025 Government Center Campus Improvements project, in the amount of $4,156; - Work Order #1 to County State Aid Highway 18 (Bailey Road) hot inplace overlay project with North Valley, Inc. in the amount of $14,518.66; - Resolution No. 2011 -080, final payment in the amount of $44,291.28 for County State Aid Highway 18 (Bailey Road) hot inplace overlay project to North Valley, Inc.; - Change Order #16 to contract with Glewwe Doors, Inc. as part of the 2025 Government Center Campus Improvements project, in the amount of $12,724; - Resolution No. 2011 -0081, final payment for 2011 crack seal pavement preservation project to Asphalt Surface Technologies Corporation; - Minnesota Recreation and Park Association Award of Excellence presented to the County Board for the "Square Lake — Making the Stormwater Connection "; - Public hearing held to consider a request by David Krueger for a text amendment to the County Development Code related to wind energy conversion systems; - Resolution No. 2011 -083, denying the request of David Krueger to amend the Washington County Development Code related to wind energy conversion systems; - Remand the request to amend the Washington County Development Code, Chapter Two, Part 3, Section 6.1 (3)(C) and (G) back to the Planning Advisory Commission to take a look at addressing issues raised by the County Board; - Public hearing held to consider amendments to the Washington County Zoning May for Denmark Township; - Resolution No. 2011 -084, amending the Washington County Development Code Chapter Two, Section 1. Zoning Maps — Ordinance No. 186; - Board workshop held for an update on Washington County transitways and upcoming board actions and timing. Sheriffs Office Adoption of Resolution No. 2011 -082, special revenues fund and update Fiscal Policy #2803 fund definitions to reflect the addition of the new fund, Code Red System Fund 241. A complete text of the Official Proceedings of the Washington County Board of Commissioners is available for public inspection at the Office of Administration, Washington County Government Center, 14949 62 Street N., Stillwater, Minnesota. Nancy Manos From: Pat Raddatz [Pat .Raddatz @co.washington.mn.us] Sent: Thursday, August 04, 2011 11:40 AM To: undisclosed- recipients Subject: Washington County Board Agenda - 8/9/2011 Attachments: 2011- 08- 09.doc Recipients of Washington County Board Agenda Coversheets: I will no longer be e- mailing you the Washington County Board Agenda. In an effort to become more efficient, provide more timely information and save money, the county will be providing our electronic versions of the Washington County Board agenda and the summary page for each item on the agenda via a PDF format. If you would like to continue receiving the Washington County agenda, please log onto www.co.washington.mn.us and click on "Board Agenda" on the right hand side of the home page. You will then have the option of subscribing to the County Board Agenda where you will receive the agenda via e-mail. The County Board agenda will be available on Friday mornings. If you have any questions regarding this change, please contact Nancy Brase at 651 -430 -6009 or e-mail at nancy.brase(abco.washington.mn.us We appreciate your continued interest in Washington County. Pat Patricia A. Raddatz Administrative Assistant 651- 430 -6014 pat.raddatz @co.washington.mn.us Washington county BOARD AGENDA AUGUST 9, 2011- 9:00 A.M. Board of Commissioners Dennis C. Hegberg, District 1 Bill Pulkrabek, District 2 Gary Kriesel, Chair, District 3 Autumn L.ehrke, District 4 Lisa Weik, District 5 1. 9:00 Roll Call Pledge of Allegiance 2. 9:00 Comments from the Public Visitors may share their comments or concerns on any issue that is a responsibility or function of Washington County Government, whether or not the issue is listed on this agenda. Persons who wish to address the Board must fill out a comment card before the meeting begins and give it to the County Board secretary or the County Administrator. The County Board Chair will ask you to come to the podium, state your name and address, and present your comments. Your comments must be addressed exclusively to the Board Chair and the full Board of Commissioners. Comments addressed to individual Board members will not be allowed. You are encouraged to limit your presentation to no more than five minutes. The Board Chair reserves the right to limit an individual's presentation if it becomes redundant, repetitive, overly argumentative, or if it is not relevant to an issue that is part of Washington County's responsibilities 3. 9:10 Consent Calendar — Roll Call Vote 4. 9:.10 Minnesota Inter - County Association — Keith Carlson, Executive Director 2011 Legislative Report 5. 9:40 Public Works — Wayne Sandberg, County Engineer A. Resolution — Award of Bid for Overlays on County State Aid Highways 6, 7 and 22 B. Resolution — Award of Bid for Overlay on County Road 13B 6. 9:50 General Administration - Jim Schug, County Administrator 7. 10:00 Commissioner Reports — Comments — Questions This period of time shall be used by the Commissioners to report to the full Board on committee activities, make comments on matters of interest and information, or raise questions to the staff. This action is not intended to result in substantive board action during this time. Any action necessary because ofdiscussion will be scheduled for a future board meeting. 8. Board Correspondence 9. 10:25 Adjourn 10. 10:30 to 11:30 - 2012 Proposed Budget - Jim Schug, County Administrator - Molly O'Rourke, Deputy Administrator - Introduction to the Proposed 2012 Budget - Internal Services (Administration, Accounting and Finance, Human Resources, General Operations and Information Technology) MEETING NOTICES" ( *'Meeting dates, time and locations may change. Contact the Office of Administration or individual agencies for the most current information) Date Committee Time Location August 10 Minnesota Inter - County Association 2:00 p.m. Kelly Inn, Sibley Room, 2" Floor — St. Paul August 10 — 12 Association of Minnesota Counties 10:00 a.m. The Lodge at Brainerd Lakes, Baxter Board of Directors Meeting August 11 Metro Transportation Advisory Board 12:30 p.m. 390 Robert Street North — St. Paul Program Committee August 11 Gateway Corridor Commission 3:30 p.m. 8301 Valley Creek Road — Woodbury City Hall Assistive listening devices are available for use in the County Board Room ^^ ^^ EQUAL EMPLOYMENT OPPOR IUNIIY / AWKMAI IVt AU IIUN tmrLUTCA WASHINGTON COUNTY BOARD OF COMMISSIONERS CONSENT CALENDAR AUGUST 9, 2011 The following items are presented for Board approval/adoption: DEPARTMENT /AGENCY ITEM Administration A. Approval of the July 12, 2011 County Board meeting minutes. Information Technology B. Approval to award bid and execution of a contract for the installation of fiber optic cabling to Access Communications. Property Records and C. Approval of resolution, application for the Exempt Permit of Minnesota Taxpayer Services Lawful Gambling from Pheasants Forever Mississippi Longtail Chapter 385. *Consent Calendar items are generally defined as items of routine business, not requiring discussion, and approved in one vote. Commissioners may elect to pull a Consent Calendar item(s) for discussion and/or separate action. Assistive listening devices are availade for use in the County Board Room EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER Washington tY BOARD AGENDA AUGUST 2, 2011- 9:00 A.M. Board of Commissioners Dennis C. Hegberg, District 1 Bill Pulkrabek, District 2 Gary Kriesel, Chair, District 3 Autumn Lehrke, District 4 Lisa Weik, District 5 1. 9:00 Washington County Regional Railroad Convenes A. Roll Call B. Pledge of Allegiance C. Presentation on Station Area Planning Study Results for the Red Rock Corridor D. Adjourn 2. 9:20 Washington County Board of Commissioners Convenes Roll Call 3. 9:20 Comments from the Public Visitors may share their comments or concerns on any issue that is a responsibility or function of Washington County Government, whether or not the issue is listed on this agenda. Persons who wish to address the Board must fill out a comment card before the meeting begins and give it to the County Board secretary or the County Administrator. The County Board Chair will ask you to come to the podium, state your name and address, and present your comments. Your comments must be addressed exclusively to the Board Chair and the full Board of Commissioners. Comments addressed to individual Board members will not be allowed. You are encouraged to limit your presentation to no more than five minutes. The Board Chair reserves the right to limit an individual's presentation if it becomes redundant, repetitive, overly argumentative, or if it is not relevant to an issue that is part of Washington County's responsibilities 4. 9:25 Consent Calendar — Roll Call Vote 5. 9:25 Community Corrections — Tom Adkins, Director East Central Regional Juvenile Center Joint Powers Agreement Renewal 6. 9:40 General Administration — Jim Schug, County Administrator 7. 9:50 Commissioner Reports — Comments — Questions This period of time shall be used by the Commissioners to report to the full Board on committee activities, make comments on matters of interest and information, or raise questions to the staff' This action is not intended to result in substantive board action during this time. Any action necessary because of discussion will be scheduled for a future board meeting. 8. Board Correspondence 9. 10:15 Adjourn 10. 10:15 to 10:40 — Board Workshop with Public Works Update on the Newport Transit Center ****************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** REMINDER NO BOARD MEETING ON AUGUST 30 — 5' TUESDAY MEETING NOTICES ** ( "Meeting dates, time and locations may change. Contact the Office of Administration or individual agencies for the most current information) Date Committee Time Location August 3 Metro Emergency Services Board Executive Committee 10:30 a.m. 2099 University Avenue — St. Paul August 4 MN High Speed Rail 10:00 a.m. 160 Johnson Street — Winona Assistive listening devices are available for use in the County Board Room If — Deal ..— e,, --.. — —...,e.,..., ....o .enn •a2 — EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER WASHINGTON COUNTY BOARD OF COMMISSIONERS CONSENT CALENDAR AUGUST 2, 2011 The following items are presented for Board approval/adoption: DEPARTMENT /AGENCY ITEM Administration A. Approval to appoint Michelle Kemper, Community Services Deputy Director, to the Workforce Investment Board, representing Community Services/ Welfare programs, to a first term expiring June 30, 2013. Community Services B. Approval of the 2011 to 2014 contract with the Dakota County Receiving Center for detoxification services and chemical health assessments. C. Approval of the 2011 to 2014 contract with Human Services, Inc. for chemical health assessments. Library D. Approval to extend the county Library agreements to provide services to the Stillwater Library and the Bayport Library through December 31, 2011. Public Works E. Approval to award the bid for construction of the St. Croix Bluffs Regional Park Shower House facility to: Parkos Construction Company, Inc., the lowest responsible bidder for Bid Division 1 and 3 with Alternate #4 in the amount of $667,700; and Doody Mechanical, Inc. the lowest responsible bidder for Bid Division 2 in the amount of $64,950; and Wex Companies, Inc. d/b /a Septic Check, the lowest responsible bidder for Bid Division 4 in the amount of $268,956. *Consent Calendar items are generally defined as items of routine business, not requiring discussion, and approved in one vote. Commissioners may elect to pull a Consent Calendar item(s) for discussion and/or separate action. Assisfive listening devices are available for use in the County Board Room EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER