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Home My WebLink About2019-07-30 CC Agenda Packet 216 4th Street N, Stillwater, MN 55082 651‐430‐8800 www.ci.stillwater.mn.us REVISED AGENDA CITY COUNCIL MEETING July 30, 2019 REGULAR MEETING 7:00 P.M. I. CALL TO ORDER II. ROLL CALL III. PLEDGE OF ALLEGIANCE IV. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS 1. Proclamation: Stillwater High School Boys Golf Team State Champion Golfer Brock Winter 2. Community Thread Budget Request – Sally Anderson, Executive Director 3. Youth Service Bureau Budget Request – Robert Sherman, Executive Director 4. Washington County Historical Society Budget Request – Brent Peterson, Executive Director 5. Comprehensive Financial Report Audit Review – Chris Knopik, ClifftonLarsonAllen V. 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. VI. STAFF REPORTS 6. Police Chief 7. Fire Chief 8. City Clerk 9. Community Development Director 10. Public Works Director 11. Finance Director 12. City Attorney 13. City Administrator VII. CONSENT AGENDA ‐ 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. 14. July 16, 2019 regular, recessed and closed session meeting minutes 15. Payment of Bills 16. Bagpipes and Bonfires Event and Temporary Liquor License 17. Rivertown Art Festival Event, Contract and Temporary Liquor License 18. State Historic Preservation grant for the 2020 Statewide Historic Preservation Conference ‐ Resolution 19. State Historic Preservation grant for updates to the Historic Preservation Commission Enabling Ordinance Amendment Project – Resolution 20. Approve Stipulation Regarding Quick Take and Lease for Shorty’s 21. Purchase of Sun Control Window Film VIII. PUBLIC HEARINGS – None IX. UNFINISHED BUSINESS X. NEW BUSINESS 22. Bakertilly Sewer Rate Study 23. Parking Capacity Study Consultant Selection XI. COUNCIL REQUEST ITEMS XII. ADJOURN enriching lives since 1967 community thread L 1. •4111 6 60nce again, # Community Thread has reached out beyond its four walls to bring 111 the community 0 Nik. together. • STAFF Sally Anderson Executive Director Kathryn Bolinder Associate Director Allissa Obler Development & Communications Director Sarah Haugen Development & Communications Coordinator Sue Elmer Older Adult Program Director Kim McRunnel Thrive Program Assistant Bayport Senior Center Coordinator Jennifer Kmecik Volunteer Center Director Leanna Miller Volunteer Center Coordinator Cathy Dyball Chore Services & Transportation Program Manager Jenny Hutchins Farrell Administrative Assistant community thread Community Thread 2300 Orleans Street West Stillwater, MN 55082 Bayport Senior Center 342 Fifth Avenue, Suite 180 Bayport, MN 55003 Phone: 651-439-7434 Fax: 651-439-7616 www.CommunityThreadMN.org Chore Services & Transportation Program At Community Thread, we have a unique way of serving people who need rides to medical appointments or chores completed at their home. We match individuals with the right volunteers - those who build a unique friendship with the people they serve and create a strong, connected community. In 2018, the average age of a recipient was 70 years old. The number of requests increased by 20% and included a variety of things such as multiple trips on the same day. We are happy to customize services to each person's unique needs whenever we can. These services provide a convenient and affordable option for older adults and adults with disabilities. We are always moved by the gratitude we receive for the volunteers and our Chore Services and Transportation Program. .�C 134 requests 214 volunteer hours 1,418 trips 1,812 volunteer hours I had to see my doctor as soon as I could. Thankfully you came to the rescue with transportation. Your people made it happen! community thread Co n nectorLaop Allina Health COURAGE KENNY REHABILITATION INSTITUTE IsCity of Oak Park Heights Thank you Community Thread Connector Loop Sponsors! Lakeview Hospital HealthPartners® u n Red Way of Washington County Easi Rotary Stillwater Rotary Club Stillwater, MN The Connector Loop has enriched so many lives by enabling those in our community to shop, attend doctor's appointments, meet with friends and visit downtown Stillwater. Older Adult Progrc... With locations in Stillwater and Bayport, Community Thread is the only community center in the valley that serves older adults. We are known for our warm, welcoming centers where everyone is invited to participate in activities and events. In 2018, participants took an active interest in the program by recommending the return of popular movement classes like chair yoga and Moving for Better Balance, and by volunteering to lead new groups such as Fun with Yarn. A host of new speakers presented on topics like relaxation therapy, expressing gratitude through writing and planning the perfect move. Our annual holiday events also continue to drive participation, invite volunteerism and encourage others to join the fun. I can't thank you enough for having these programs for my dad to attend. He's more active than ever thanks to your warm and inviting center. Volunteer Center Our Volunteer Center is the only volunteer clearing house in the area. Our hands-on approach connects people who want to make a difference with those who need help. We also strive to fill needs that haven't been met and partner with other organizations to make our community stronger. In 2018, Stuff the Bus donations increased by 50% and included a shopping day for families. Community Thread partnered with Xcel Energy for River Rally this year to be a day of service site for their team. Holiday Hope expanded to include a gift shopping experience for families and a Giving Tree where people could buy a single requested gift instead of sponsoring an individual or family. We also saw growth in our Summer Stretch and Connect the Dots programs where we engaged on a deeper level with our Volunteer Center Affiliates. 5 _.0 r v I C community thread 11 nonprofit sites `hoer' �� community thread 107 hours of service qq community thread homeowners served What a great way to connect with other similarly minded volunteers who care about this beautiful resource we have in our community! - River Rally Volunteer community thread 1,137 individuals served community thread 2300 Orleans Street West Stillwater, MN 55082 OUR VISION A community where all people are engaged, enriched and connected. OUR MISSION To leverage resources and volunteers to improve the quality of life for adults and their families in our local community. CIt ,Itka Council' MEETS STAND t nnrtolrnn.wp United Way DS Un$Od W y Washington County -East THANK YOU FOR YOUR SUPPORT IN 2018! Learn about our accomplishments community thread connecting people. enriching lives. 2018 Financials Sales, Fees & Fundraisers 12% Businesses & Orgs. 4% 44 Individual 16% Municipal 4% United Way of Wash. Cty. East 7% Support & Revenue $611,282 Fdundalion 57% Chore Services & Transportation Program 12% Fundraising 15%6 ,1141 Yl r Management 15% Total Functional Expenses $628,573 Statement of Financial Position December 31, 2017 & 2018 Older Adult Program 35% olunteer Center 23% Cash Accounts Receivable Prepaid Expenses Pledges Receivable Property and Equipment, at cost, less accumulated depreciation of $427,115 and $399,927 respectively. Total Assets $143,421 $1,090 $4,371 $0 $523,797 $146,117 $971 $4,289 $0 $534,832 $672,679 $686,209 '111.1kil � Accounts Payable Accrued Expenses Total Liabilities $2,816 $2,520 $17,088 $13,623 $16,143 $19,904 Unrestricted Undesignated Total Unrestricted Temporarily Restricted Total Net Assets 2018 BUSINESS PARTNERS $631,999 $663,720 $20,776 $6.346 $652,775 $670,066 2018 BOARD OF DIRECTORS Board Treasurer Community Volunteer fCommunity Volunteer 9 1 1 ra+rtli f�*�l r�r. The Sanctuary hctron King 0 Andersen Corporation DemandQuest Marketing Digital Dental Solutions 2 Board Vice President First State Bank & Trust Board President Stillwater Area High School Jnminvilie Lake Elmo Bank Comfort Keepers 1 ,I!1�; •.i r�r.., Community Volunteer Past Board President City of Oak Park Heights ANDERSEN CORPORATION BAY DENTAL CARE BLUESTONE PHYSICIAN SERVICES BRINE'S MARKET CARNELIAN MARINE ST. CROIX WATERSHED DISTRICT CATES FINE HOMES CCF BANK CEDAR PET CLINIC COMFORT KEEPERS COSTCO ECKBERG LAMMERS, P.C. EDINA REALTY FIRST STATE BANK AND TRUST GALOWITZ OLSON, PLLC JERRY'S AUTO BODY JIMMY JOHN'S KELLER WILLIAMS PREMIER REALTY KRISTINALYNN PHOTOGRAPHY AND DESIGN LAKE ELMO BANK LAKEVIEW HOSPITAL LEO'S GRILL & MALT SHOP LET'S GO FISHING MIDWESTONE BANK MONARCH HEALTHCARE MANAGEMENT PERFORMANCE POOL AND SPA PONY PRESCHOOL CHILD DEVELOPMENT CENTER SARA'S TIPSY PIES SCHEEL'S CATERING STILLWATER BOAT CLUB & RENTALS STILLWATER NOONTIME ROTARY VALLEY ORTHODONTICS WOMEN'S BUSINESS BRIDGE XCEL ENERGY "Alone we can do so little; together we can do so much" Helen Keller Dear Friends of Community Thread, We know that to be successful in business, and in life, we need to collaborate. As a free standing nonprofit, we are grateful to join forces with volunteers and other organizations as we work to address gaps in our community. We are delighted to share with you some of our significant accomplishments in 2018 as a result of our partnerships and the community needs that compelled this collaborative work. Lack of personal transportation has serious implications. A recent Community Health Needs Assessment identified access to care as a top priority, with transportation challenges as a major barrier. Community Thread has been providing rides to medical appointments in partnership with volunteers since 1967. Last year our Transportation Program coordinated 20% more requests and completed 22% more trips over the prior year - a sign of the increasing demand for support as our community ages. Through a partnership with DARTS, the Community Thread Connector Loop bus circulator launched in late 2018. In the first 16 weeks of service, over 130 riders were able to shop at various retailers and access community resources such as the food shelf and library. Access to healthy and affordable food strengthens our community. In partnership with The Food Group, Valley Outreach and the United Way of Washington County - East, Community Thread became the host site for Fare For All, a program that reduces barriers for families seeking to stretch their food purchasing power by offering discounts up to 30 percent off retail prices. Since Community Thread became the host site, the number of households served has doubled, benefitting 209 households in December 2018 alone. The aging population in our community is growing and new supports will be critical. The total population of 65+ residents in ISD#834 is projected to grow 30% by 2022. In 2018, we approved a business plan that responds to the demand for more support of our aging community with a program that expands the assistance people can receive to remain living independently. In partnership with volunteers and other supporters, Thrive at Community Thread will provide services that allow older adults to stay in their homes as they age. We are grateful to our partners who helped us make an impact in 2018. We welcome your support going forward as we increase our capacity to deliver more services to more people and address the gaps that arise in our community. Together we can indeed do so much. "a;i Aaron Drevlow President, Board of Directors 11n . j,..4-v,r--- Sally Anderson Executive Director Sea, A-31144.0.-- Preserving Tomorrow's HISTORY WASHINGTON COUNTY HISTORICAL SOCIETY The Story of the WASHINGTON COUNTY HISTORICAL SOCIETY In 1934 a group of individuals gathered at the Stillwater Public Library to "investigate and study the history of Washington County" and to "provide for the collection and of our history and the Washington County Historical Society was formed. preservation" For more than ninety years, WCHS has focused on purchasing historic buildings and land in order to tell the stories of the area. Initially storing collections in a room in the library, it quickly became necessary to expand. After incorporating in 1941, the Warden's House of the Stillwater Prison was purchased from the State of Minnesota. The Warden's House is the only Minnesota Territorial building remaining, as well as the second oldest continuously operating house museum in the state. It was added to the National Register of Historic Places in 1974. During the 1970s, the Historical Society took over the tours at the Hay Lake School building and later purchased the school from the Forest Lake School District. At the same time, an 1868 log house, constructed by Johannes Erickson, a Swedish immigrant, was moved onto the site. Both these buildings have also been added to the National Register of Historic Places. In 1996, with the collections growing rapidly, the WCHS reconstructed the Warden's House carriage house for use as storage and a research facility. Now, twenty years later, the collections again have grown to a point to where more storage is needed. More importantly, the organization is now ready to expand its offerings to provide a substantial resource currently lacking in this community: a Heritage Center, to include dedicated exhibit space, up-to-date research facilities, and classroom/meeting areas. This new Center will confirm the role Washington County played in both the early days of statehood as well as allow new opportunities to highlight the important role it continues to play in the ongoing developments of our state and nation. It is to this end that the Board of Director's approved launching a $5 million capital campaign in January, 2019. WCHS's mission is to collect, preserve, and disseminate the history of Washington County and the State of Minnesota. The ultimate goal is to provide the opportunity for all to learn about and enjoy this area's unique history and build a sense of community heritage. The WO H S : Sponsors a vintage baseball team Offers expertise to help community members conserve collections and produce exhibits Provides educational programs to school groups and the public Develops and offers historical displays, lectures, and workshops throughout the County Collects and preserves cultural artifacts and documents for future generations Writes and publishes books about County history Maintains an informative history web site (www.wchsmn.org) Curates 150 years of history in the Carriage House library collection OUR MISSION and OFFERINGS The Historical Society operates three historic sites that showcase 19th century heritage of Washington County, Minnesota: Warden's House Museum, Stillwater - Built in 1853 as the residence of the Minnesota Territorial Prison warden, the Museum consists of 14 rooms decorated in the late 19th and early 20th century style. Hay Lake School and Erickson Log Home, Scandia - The buildings illustrate pioneer life of the area's 19th-century Scandinavian immigrants. Eder School Museum, located at the Oakdale Nature Center, offers programs by the Historical Society during the summer. THE ISSUES FACING WCHS TODAY While WCHS's house and school museums provide excellent interpretation of pioneer and Victorian life, early schooling, and even life behind bars, these facilities do not have space to adequately highlight other parts of Washington County, its business and agricultural history, and events that occurred before and after the mid- to late nineteenth century. The interpretive sites can not tell the stories of Native American populations, railroads, logging, agriculture, women's suffrage, or prohibition in the County, all of which have had colorful and important roles in the area. Most of the artifacts and records collected by WCHS are stored at the Warden's House Museum and Carriage House but most are not available for display and are not properly stored for conservation. Some of the issues are: The lack of museum quality HVAC (heating, ventilation and air conditioning), which is highly detrimental to preservation of the collection. Inability of proper research for family or local history due to lack of space and technology. Insufficient exhibit space to display some amazing collection items - including a lumberman's bateaux, a nineteenth century delivery wagon, or an extensive collection of period clothing. Currently, the Washington County Historical Society is the only organization that is collecting the history of Washington County and preserving its stories. In the near future, our present facilities will run out of space, which will severely affect our ability to collect, preserve, and exhibit the County's historical artifacts and records. In addition, there is no centralized location to create exhibits to showcase the history of this area or to bring in traveling exhibits that will complement our collection. OUR FUTURE PLANS The WCHS purchased a building at 1862 South Greeley Street in 2013. Fortunately, part of the purchase included a contract with MNDOT to rent the building while the new bridge over the river was being built, helping to completely pay off the building. The remaining cost of the building was provided by the Margaret Rivers Fund, the Hardenbergh Foundation, Washington County, the City of Stillwater, and many generous donors. This building offers 14,000 square feet of space as well as ample parking and easy access to Highway 36. The new building will allow the Historical Society to become an even greater resource to the County and all its visitors. The Heritage Center will include: Floor Plan PARKING ISOLATION ARTIFACT STORAGE 1 COMPACT STORAGE- s-)m ■ 11 ro 1 b p CLASSROOM - 30 SEATS r'iL! e� 1'1�tIC Three exhibit galleries which will provide permanent and temporary exhibit space showcasing local history Multiple display areas to highlight smaller exhibits Expanded space for larger and more comprehensive education programs MAIN ENTRY BUS DROP OFF PARKING `l - ARTIFAC1 STORAGE 1...Y.1.11611 T 0 R KITCHENETTE/ VOLUNI FERS a OFFICE OFFICE PiAN 1 ER W/ TREES LOBBY T x RECEPTION GIFT i RESEARCH EXHIBIT lir v A state of the art archives/research library Climate -controlled storage areas to preserve valuable documents and artifacts Gift shop space U s PARKING SIDEWALK FERO/K 5TRF E Schematic of new Heritage Center OU I DOOR GALLLRY . WASHINGTON COUNTY HISTORICAL SOCIETY Beth Wolf — From: Mary Russell <russe021@umn.edu> ZI / ) Sent: Tuesday,July 30, 2019 4:15 PM To: Beth Wolf 7 , -.1 a / Subject: Parking Capacity Study Dear Mayor and Council, Regarding agenda item 22, Parking Capacity Study Consultant Selection, I worked with Lance Bernard from Hoisington Koegler Group (HKGi) on the 2040 Comprehensive Plan Advisory Committee, and would like to second the Parking Commission and staff recommendation and endorse HKGi's selection. I would also like to request that the parking study consider Stillwater's 2040 Comprehensive Plan sustainability goals and objectives as part of their process, and that they consider Stillwater's GreenStep program goals in their recommendations. Sincerely, Mary Russell 921 N.2nd St. Mary H. Russell professional editing since 1991 russelleditorialservices.com 'v!J mile 1 2018 Audit and Financial Results Auditor Responsibilities under Generally Accepted Auditing StandardsAccounting Policies ConsistentAccounting Estimates – Depreciation, Actuarially Estimated OPEB Liability, Values of Investments, & Net Pension Asset/Liability – Noted to be ReasonableDifficulties in Performing Audit – NONEMisstatements/Corrections – NONEUncorrected Misstatements – NONEDisagreements with Management – NONESupplementary/statistical - auditor responsibility AUDITOR OPINION ON FINANCIAL STATEMENTS – CLEAN. (FINANCIAL STATEMENTS FOUND TO BE FAIRLY STATED IN ALL MATERIAL RESPECTS)INTERNAL CONTROLNO FINDINGS/CLEAN REPORTMINNESOTA LEGAL COMPLIANCE NO FINDINGS/CLEAN REPORT THIS IS A FAVORABLE AUDIT RESULT– CITY FINANCE DEPARTMENT SHOULD BE COMMENDED GASB No. 84 – Fiduciary Activities – Effective December 31, 2019GASB No. 87 – Leases – Effective December 31, 2020 0501001502002502009 2010 2011 2012 20132014 2015 2016 2017 2018ActualGoal 2011 2012 2013 2014 2015 2016 2017 2018Other228,550.00 240,326.00 183,339.00 264,272.00 298,076.00 229,570.00 127,714.00 129,864.00Investment Income39,260.00 30,391.00 (61,399.00) 90,738.00 18,808.00 (12,358.00) 12,130.00 37,294.00Fines and Forfeits110,929.00 103,368.00 106,638.00 113,685.00 113,246.00 69,881.00 83,481.00 225,310.00Charges for Services919,298.00 837,178.00 759,439.00 787,642.00 720,557.00 956,514.00 970,743.00 966,656.00Intergovernmental862,462.00 696,504.00 734,997.00 1,128,575.00 1,222,423.00 1,281,586.00 1,294,425.00 1,424,999.00Special Assessments15,334.00 17,216.00 14,054.00 31,025.00 19,929.00 15,157.00 21,428.00 9,736.00Licenses and Permits473,538.00 407,447.00 411,128.00 475,450.00 573,538.00 501,126.00 817,767.00 980,201.00Franchise Taxes431,579.00 437,774.00 441,958.00 444,672.00 449,333.00 462,988.00 467,214.00 351,721.00Property Taxes$4,982,511 $5,378,336 $5,670,526 $5,746,441$5,871,051 $6,359,683 $6,867,774 $7,198,935 $(1,000,000) $‐ $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 2011 2012 2013 2014 2015 2016 2017 2018Capital Outlay521,589 706,734 281,977 474,743 681,263 553,439 1,208,842‐Public Works1,295,408 1,163,733 1,237,304 1,299,1131,226,832 1,257,317 1,274,299 1,450,792Public Safety4,084,846 4,108,351 4,311,922 4,585,1794,726,341 5,045,005 5,191,090 5,619,297General Government2,670,457 2,608,706 2,789,040 3,087,8673,226,033 3,531,162 3,773,284 3,888,544 ‐ 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000 12,000,000General GovernmentPublic SafetyPublic WorksCapital Outlay $‐ $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,0002011 2012 2013 20142015 2016 2017 2018Operating RevenuesOperating Expenditures (inc. Capital Outlay) $‐ $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,0002012 2013 20142015 2016 2017Debt Service Maturity Date:2005C: June 1, 2018 (called Dec. 2017)2009C: June 1, 2020SCVRC FundDebt Service Tax LevyTIF #4TIF #6SH1 Slide 10SH1 Sharon Harrison, 6/26/2014 $‐ $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,0002012 2013 2014 2015 2016 2017 2018Operating Revenues & ExpendituresProperty TaxesOther RevenuesOperating Expenditures (w/o Capital Outlay)Capital Outlay $‐ $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,0002009 2010 2011 2012 20132014* 2015 2016 2017 2018*Operating RevenuesOperating Expenses* Rate increase occurred during these years * Rate increase occurred during these years‐$600,000‐$400,000‐$200,000$0$200,000$400,000$600,000$800,000$1,000,000$1,200,000$1,400,0002009 2010 2011 2012 20132014* 2015 2016 2017 2018* ‐ 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,0002009 2010 2011 2012 20132014 2015 2016 2017 2018Operating RevenuesOperating Expenses & Funding Transfers $‐ $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,0002009 2010 2011 2012 20132014 2015 2016 2017 2018Operating RevenuesOperating Expenses & Funding Transfers * Includes the Parking Ramp $‐ $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,0002009 2010* 2011* 2012* 2013*2014* 2015* 2016* 2017* 2018*General Parking RevenuesParking Ramp RevenuesGeneral Parking ExpensesParking Ramp Expenses $0$5,000,000$10,000,000$15,000,000$20,000,000$25,000,0002008 2011 2014 2107 2018RetireesActives $0$5,000,000$10,000,000$15,000,000$20,000,000$25,000,0002011 2014 2017 2018DirectImplicit $‐ $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 $2,250,0002009 2010 2011 2012 20132014 2015 2016 2017 2018Operating RevenuesOperating Expenses r ii,~ e Ne/ping youth and families leam the skills they need to be mo1e successful at home. in school and throughout th e community bureau www.ysb .net City of Stillwater RECEIVED Attn: J. Thomas McCarty, City Administrator 216 North Fourth Street MAY 3 O 2019 Stillwater, MN 55082 Dear Tom, City of Stillwater Administration Thank you for the City of Stillwater's past support of Youth Service Bureau's (YSB) mission to help youth and families learn the skills they need to be more successful at home, in school and throughout the community. In 2019, your contribution to YSB was $10,500. Like all nonprofit organizations, our cost of doing business (salaries, rent, benefits, etc.) increases each year. Please consider increasing your contribution to $12,000 to help defray those costs and keep the best possible staff employed at YSB. For 43 years, YSB has pursued our goal to give youth and families the support they need at the first sign of challenges; early intervention helps avoid significant future consequences and costs, benefitting youth and the communities that they live in. By accessing YSB's youth-focused family counseling services, diversion programs, chemical health support and parent education, youth and families are better equipped to handle life's challenges and learn from their mistakes. YSB's programs are based on promoting prevention and early intervention strategies. When help is needed, early and immediate interventions support better learning and increase positive outcomes. YSB's program Areas : • Youth-Focused Family Counseling (Mental Health) services help youth who are just beginning to struggle with challenges in their lives and provides support to parents and caregivers. 77% of parents have indicated that their child's issues were resolved or manageable in follow-up of closed cases. • School-Based Chemical Health specialists are a critical resource for students, families and school staff. We provide direct student support services and prevention services. 80% of youth have indicated an increased resilience to chemical use. • Diversion Programs are early-intervention programs that hold youth accountable for inappropriate actions, such as theft, curfew violation, fighting, and chemical use, without creating a juvenile record. YSB involves parents and caregivers in the process , giving families needed support. 84 % of youth completing our programs have not reoffended in the following 12 months. • Youth and Family Education program provides current, relevant, and supportive information to families and the wider community. We also provide schools with staff and classroom presentations to educate them about anxiety, chemical use, and social media use. 98% of respondents from 92 community and 158 school-based presentations indicated that the content was good or great and useful or very useful. Referrals to all our services are welcome from anyone concerned about a youth's behaviors, choices and/or mental health. This includes parents, teachers, school administrators , social workers, school officer liaisons, and youth themselves. Washington County Police and Court referrals are common for YSB's Diversion services for situations involving law enforcement. COTTAGE GROVE 7064 W. Po ,nt Doug las Road Suite #201 Cottage Grove MN 55016 651 -458-5224 STILLWATER Wa sh in gton Co unty Hi storic Co urthouse 101 Pin e St reet West_ St illwater. MN 55082 651 -439-8800 WOODBURY 787 6 Hudson Road. Suite #1 Woodbury, MN 55 125 651-735 -9534 Last year, YSB provided over 8000 hours of services to over 14,000 youth and families through YSB's program areas to make a real difference in their lives by improving school performance and healthy outcomes, reducing truancy and court costs, educating youth and parents, and providing needed social services. With support from our municipal and community partners, donors and volunteers, YSB ensures that families never have to face life's challenges alone. Working together we show that when young people and their families are provided accurate information and effective support, they can make better choices, improving their lives and benefitting the entire community. If you would like to schedule a short presentation about our work in the community at an upcoming City Council meeting, please contact Barbara Ohs at 651-439-8800. Thank you for your past support in finding local solutions that help youth and their families make better choices and have brighter futures. We appreciate your consideration of our request and look forward to your response. Sincerely, Robert T. Sherman, Jr. Executive Director -- Justice For Ralph BellA Murder Victim Ralph’s Disappearance Date: December 20th2018Time Last Seen: Approximately 10pmAge When Missing: 23Traces of Ralph: Ralph’s car was abandon in a coldisack in the City of Roseville, about 20 miles away from his apartment in Stillwater. The car was left running, lights on and the doors open but NO RALPH BELL! During His DisappearanceDuring the 3 month’s and 2 day’s that Ralph was missing, family and friends conducted several searches in attempt to find Ralph. Also during his disappearance he missed his birthday, his daughter’s birthday, and his son’s birth, Christmas, and Valentines Day. Finding Ralph Age When Found: 24 (would have been)On March 22nd2019 Ralph was finally found on the corner of Dale and Roselawn Avenue in Roseville. He had been BURTALLY MURDERED nearly 1 ½ miles away from where his car was found and there are no suspects in custody. Other Important Facts No wallet, or phone was found in Ralph’s car, just a phone case.Unable to ping his phone because it was dead before he left.Ralph was found with multiple stab wounds.There has been some over exaggeration with Ralph’s death. Wallet was found near his body, the information inside was scattered around the crime scene.Involved agencies have contradicting information There were ZERO police lead search’s, that included the family and friends. Percentage of Search's Conducted 0%10%20%30%40%50%60%70%80%90%100%Police Search Family/Friends SearchFamily/FriendsSearchesPolice Seaches We Need AnswersRalph’s family and friends deserve answers.We, the family, want this case to be reopened and justice to be served for Ralph. He deserves it, his mom deserves it and so does his family. Ralph did not do this to himself, there is a murderer running free.Please reopen this case and find justice for this amazing young man. Page 1 LIST OF BILLS Abrahamson Nurseries Landscaping at Myrtle from Interlachen 2,190.00 Advance Auto Parts Supplies 5.95 Advanced Sportswear Polos with logo 49.99 Amdahl Locksmith Inc Chris Lock service 110.00 AMI Consulting Engineers PA Riverbank stabilization 39,807.20 Ancom Technical Center Service 700.10 Aspen Mills Uniforms 245.95 AutoNation Vehicle service 57.81 BHE Community Solar Solar Energy 6,321.34 Brines Market Meals LJD 397.34 Brownells Inc Equipment repair supplies 187.78 CDW Government Inc. Label maker 94.54 Cintas Corporation Mat cleaning service 356.28 Clear Title LLC Tr Acct UB Refund 61.20 Comcast Internet 134.90 Coverall of the Twin Cities Commercial cleaning services 540.00 Dalco Janitorial supplies 241.33 Dogpoopbags.com Dog clean up bags 130.00 Dynamic Fire Protection City Hall Project 520.00 ECM Publishers Publications 104.50 Emergency Automotive Vehicle equipment 10,389.50 Emergency Medical Products Heartstart batteries 1,036.60 Emergency Response Solutions Shipping 12.07 Finwall Shann Reimburse for Technology 599.00 Fury Motors Vehicle service 43.19 Grainger Supplies 575.21 Group Medicareblue RX Retiree Prescriptions Ins 2,569.00 Integrity Land Development Inc Neal Ave road & right of way 60,548.99 Jefferson Fire and Safety Inc. Equipment repair supplies 156.30 Johnson Katherine Refund of Aug & Sept Parking Permit 40.00 Junker Brad Reimburse for meals 84.48 Kraske Mark or Patricia Reimburse for parking ticket over payment 5.00 Lakeview Hospital Legal blood draws 50.00 League of MN Cities Workers Comp Claim 1,735.89 Madden Galanter Hansen LLP Labor Relations Services 192.00 Menards Supplies 2,021.14 Meredith Nathan Reimburse for tip to Brines delivery driver 25.00 NAC Mechanical and Electrical Services City Hall Project 4,985.10 NAPA Auto Parts Auto maint supplies 4.79 Office Depot Office supplies 133.80 Pasket Dennis Reimburse for meals 9.53 Performance Plus LLC Drug screen 135.00 Pioneer Press St. Paul Notice of public hearing 12.04 Pro‐Tec Design Boutwell gate 190.00 Pullen Annette Marie Therapy 180.00 Page 2 Quill Corporation Office supplies 114.91 RES Specialty Pyrotechnics Inc. Fireworks 7/4/2019 48,800.00 River Valley Printing Inc. Door hangers 342.00 Robole Donna Reimburse for HR office supplies 56.78 Roush Jim Reimburse for CPR class 34.00 Saint Johns University Housing for training 500.00 Sams Marine Inc Vehicle repair charges 772.04 SRF Consulting Group ADA transition plan & study 1,396.84 St. Croix Boat and Packet Co. Ramp cleaning 810.00 Stillwater Motor Company Vehicle service 46.74 Streichers 12 Gauge bean bag round 451.99 The Foundation Labor 262.50 TKK Electronics Mobile data computers 8,814.84 Uline Inc Supplies 1,057.57 Valley Trophy Inc. Name plate 15.00 Verizon Wireless Wireless Service 2,322.01 Young Dan Reimburse for expenses 140.11 Zimmerman Bryan Park Fee Refund 135.00 REC CENTER Advanced Sportswear Uniforms 15.00 Braun Intertec Corporation Dome Project 1,439.00 Cintas Corporation Mat cleaning service 154.50 Coca‐Cola Distribution Beverages for concessions 644.88 Comcast TV Internet & Voice 373.65 Grainger Equipment repair supplies 121.30 Hodges Badge Co Inc Empire 3 8" Str 915.30 Ice Skating Institute Skater member 3,090.00 Kraus‐Anderson Dome Project 48,227.19 Lindstrom Solar LLC Solar Energy 7,907.74 Menards Supplies 211.79 Riedell Shoes Inc. Skates 815.28 St. Croix Boat and Packet Co. Arena Billing 35,687.58 LIBRARY Amdahl Locksmith Inc Chris Power Opener ‐ 3rd St 304.00 Art Reach St. Croix Programs 100.00 Brodart Co Materials 2,183.09 Heritage Printing Inc. Envelopes 161.10 Midwest Tape Materials 532.46 Minitex RFID Tags 806.00 Office of MN IT Services Phone 138.50 Petrie Angela Reimbursement ‐ Programs 113.70 Powers Jr Francis Gary Adult Programs 300.00 Recorded Books Inc Materials ‐ Audio (JAB) 121.21 Page 3 Regents of the U of M Programs 295.00 Scholastic Inc Programs 463.57 Textile Center Programs 1,625.00 ADDENDUM Abrahamson Nurseries Landscaping 3,955.56 Advance Auto Parts Equipment repair supplies 454.11 AE2S Construction (EIM) Dome Project 24,654.54 American Pump Company Repair rental pump 6,661.61 Amery Welding & Fabrication Dome Project 38,950.00 Anchobaypro Inc Curve Crest Villas 32,537.70 Boyer Trucks Equipment repair supplies 212.97 Cedar Small Enigne Used engine 279.99 Cintas Corporation Uniforms & Mats 636.74 County Materials Corporation Catch basin riser 112.00 Ebert Construction Dome Project 12,416.50 ECM Publishers Maintenance worker II 92.70 Elevage Hotel Group LLC Tax Increment 26,787.55 Energy Concepts Inc Refund 80% Permit Fee 301.80 Fraley Thomas Supplies 35.00 Freds Tire Company Tube 19.95 Frontier Ag & Turf Equipment repair supplies 171.88 Fun Jumps Nite to Unite 620.00 Gopher Sport Bownet pickle ball net 2,590.38 Greiner Michael Reimburse for mileage 116.46 Haussner Plumbing LLC Bathroom railings 2,870.00 L.T.G.Power Trimmer head 65.90 Mansfield Oil Company Fuel 9,499.54 Marshall Electric Company Electrical work 5,448.00 Menards Supplies 1,430.42 MidAmerica Inc Lift Station Remediation 2,540.75 Miller Excavating Dome Project 159,169.46 MTI Distributing Equipment repair supplies 150.34 Nuss Truck & Equipment Equipment repair supplies 472.00 Pet Waste Eliminator Pet waste eliminator bags 56.99 Rink Systems Inc. Deluxe cubbies ‐ see receipt 178219 25,365.00 Safe Fast Inc Disposable gloves 232.50 SiteOne Landscape Supply Park facility supplies 517.59 Stillwater Motor Company Equipment repair supplies 36.50 Summit Companies Dome Project 3,531.15 T.A. Schifsky and Sons Asphalt 12,938.51 Titan Machinery Shakopee Equipment repair supplies 853.35 Toll Gas and Welding Supply Cylinders 45.38 Tri‐State Bobcat Equipment repair supplies 1,030.84 Winnick Supply Equipment repair supplies 155.18 Xcel Energy Energy 13,963.99 Page 4 Zee Medical Service First aid supplies 384.85 Ziegler Inc. Equipment rental 4,570.00 TOTAL 707,744.69 Adopted by the City Council this 30th day of July, 2019 1 STATE OF MINNESOTA DISTRICT COURT COUNTY OF WASHINGTON TENTH JUDICIAL DISTRICT Case Type: Condemnation Judicial Officer: Juanita C. Freeman COURT FILE No. 82-CV-19-2394 City of Stillwater, a Minnesota municipal corporation, Petitioner, v. STIPULATION REGARDING Joleen M. Bourdaghs, a single person; QUICK TAKE AND LEASE Carol A. Eggers and Charles A. Eggers, husband and wife; Shorty Cleaner Launderer, Inc., a Minnesota corporation; County of Washington; and all other parties unknown having any right, title or interest in the property described in Petitioner’s Petition, together with the unknown heirs or devisees, if any, of the parties that may be deceased, and including unknown spouses, if any, and all others claiming any interest in the property described in Petitioner’s Petition, Respondents. This Stipulation is entered into, by and through undersigned counsel, among and on behalf of Petitioner City of Stillwater (“City”) and Respondents Joleen M. Bourdaghs, Carol A. Eggers, Charles A. Eggers, and Shorty Cleaner Launderer, Inc. (“Respondents”). Recitals 1. These recitals are part of the Stipulation. 2. The City has filed and served a petition to acquire the real property legally described on Exhibit A (“Property”) using the power of eminent domain for a project to expand its 2 parking facilities (“Project”) and has moved to acquire title and possession utilizing the “quick-take” procedure under Minn. Stat. § 117.042. 3.Joleen M. Bourdaghs, Carol A. Eggers, and Charles A. Eggers are the fee owners of the Property and are the owners of Shorty Cleaner Launderer, Inc. (“Shorty’s”). 4.Shorty’s is the only tenant on the Property. 5.The City is willing to defer the commencement of demolition and construction for the Project until the 2020 construction season. 6.The parties desire to enter into an agreement whereby the City will take the right of title and possession to the Property in August, 2019, and will lease the Property back to Shorty’s until the 2020 construction season. Stipulation NOW THEREFORE, in consideration of the mutual promises herein, the parties enter into the following stipulation: A.Taking. The taking is reasonably necessary and for the Project and the Court may grant the City’s petition and motion to take title to and possession of the Property on or after August 16, 2019. B.Quick-Take Payment. In order to acquire the right of title and possession, the City shall make the quick take payment required by Minn. Stat. § 117.042 as follows: a.To avoid the necessity of depositing the funds with the court, Respondents agree that the City may satisfy its obligation as required by Minn. Stat. § 117.042 to pay the Owners by making the payment by delivering to counsel for Respondents a check in the amount of Four Hundred Eighty Thousand and 00/100 Dollars ($480,000.00) made payable to “Joleen M. Bourdaghs and Carol A. Eggers.” 3 b. Upon request, Respondents will furnish to the City W-9’s for the payee(s) on the check. c. The City will make the payment as soon as practicable after August 16, 2019, but no later than August 31, 2019. d. Upon payment, the City will record the order granting its petition, together with proof of payment, in the Office of the Washington County Recorder. C. Lease-Back. Immediately upon acquiring title, the City will lease the Property back to Shorty’s until April 30, 2020, as follows: a. The form of the lease shall be materially the same as the lease attached hereto as Exhibit B. b. Shorty’s will accept the Property as is and, except for snow remove in the parking lot of the Property such that the business can continue to operate, the City will have no duty to repair or maintain the Property. Shorty’s will procure and maintain insurance to indemnify Shorty’s and the City against any claims for loss or damage arising from the occupation or use of the Property by Shorty’s, its employees, agents, or invitees. c. The City will be responsible to pay all property taxes accruing during the term of the lease and the total rent, through April 30, 2020, shall be $1.00. d. If by written agreement the parties agree to extend or renew the lease for any period beyond April 30, 2020, all terms will be negotiable. e. The parties may pre-sign the lease and that executed lease will become effective and enforceable immediately upon the City’s acquisition of title to the Property. 4 D. Non-Waiver. Nothing in the Stipulation shall be deemed a waiver of Respondents’ right to make claims for just compensation, relocation benefits, or any other claim for damages, fees, or costs they may have as a result of the condemnation. All such claims, and the City’s defenses thereto, are reserved. E. Undersigned counsel represent and warrant that they have authority and have been directed to enter into this Stipulation on behalf of their respective clients. This Stipulation may be executed by electronic signature and may be executed in separate counterparts which, taken together, shall constitute one original agreement. Dated July ___, 2019. LeVANDER, GILLEN & MILLER, P.A. ______ _______ Peter G. Mikhail, Lic. No. 249907 Korine L. Land, Lic. No. 262432 633 South Concord Street, Suite 400 South St. Paul, MN 55075 (651) 451-1831 Attorneys for Petitioner Pmikhail@levander.com kland@levander.com COUNSEL FOR PETITIONER CITY OF STILLWATER Dated July ___, 2019. MESSERLI KRAMER _____________________________ Daniel S. Schleck, Lic. No. ___________ 1400 Fifth Street Towers 100 South Fifth Street Minneapolis, MN 55402 (612) 672-3771 dschleck@MesserliKramer.com 5 COUNSEL FOR RESPONDENTS JOLEEN M. BOURDAGHS, CAROL A. EGGERS, CHARLES A. EGGERS, AND SHORTY CLEANER LAUNDERER, INC. 6 EXHIBIT A Legal Description of the Property 7 PIDS: 28.030.20.41.0082 and 28.030.20.41.0081 Street Address: 121 Chestnut Street East, Stillwater, MN 55082 28.030.20.41.0082: The East 49 feet of Lot 1, and the East 49 feet of the North 1/2 of Lot 2, Block 30, Original Town (now City) of Stillwater, excepting therefrom that part of Lots 1 and 2 of Block 30 of the original Town (now City) of Stillwater, described as follows: Beginning at a point on the south line of Chestnut Street 49 feet 6 inches east of the NW corner of said Lot 1, and running thence South on a line parallel with the West line of said Lots 1 and 2, 65 feet; thence East at right angles with said last mentioned line 6 inches; thence south on a line parallel with the West line of said Lots 1 and 2, 35 feet to a point on the South line of said Lot 2; thence East on the south line of said Lot 2, 25 feet; thence north on a line parallel with the West line of said Lots 1 and 2, 21 feet; thence East on a line parallel with the North line of said Lot 1, 26 feet; thence North on a line parallel with the West line of said Lots 1 and 2 to the south line of Chestnut Street; thence West along the South line of Chestnut Street to the place of beginning. AND The East 75 feet of the South 1/2 of Lot 2, Block 30, Original Town (now City) of Stillwater, excepting therefrom that part of Lots 1 and 2 of Block 30 of the Original Town (now City) of Stillwater, described as follows: Beginning at a point on the south line of Chestnut Street 49 feet 6 inches east of the NW corner of said Lot 1, and running thence South on a line parallel with the West line of said Lots 1 and 2, 65 feet; thence East at right angles with said last mentioned line 6 inches; thence south on a line parallel with the West line of said Lots 1 and 2, 35 feet to a point on the South line of said Lot 2; thence East on the south line of said Lot 2, 25 feet; thence north on a line parallel with the West line of said Lots 1 and 2, 21 feet; thence East on a line parallel with the North line of said Lot 1, 26 feet; thence North on a line parallel with the West line of said Lots 1 and 2 to the south line of Chestnut Street; thence West along, the South line of Chestnut Street to the place of beginning. AND The East 100 feet of the North 1/2 of Lot 3, Block 30, Original Town (now City) of Stillwater, Washington County, Minnesota. 8 28.030.20.41.0081: All that part of Lots 1 and 2 of Block 30 of the Original Town (now City) of Stillwater, described as follows: Beginning at a point on the South line of Chestnut Street, 75 feet east of the NW corner of said Lot 1 and running thence South on a line parallel with the West line of said Lots 1 and 2, 79 feet; thence East at right angles with said last mentioned line 26 feet; thence North on a line parallel with the west line of said Lots 1 and 2, 79 feet to the south line of Chestnut Street; thence West 26 feet along the south line of Chestnut Street to the place of beginning. AND All that part of Lots 1 and 2 of Block 30 of the Original Town (now City) of Stillwater, described as follows: Beginning at a point on the south line of Chestnut Street 49 feet 6 inches east of the NW corner of said Lot 1, and running thence South on a line parallel with the West line of said Lots 1 and 2, 65 feet; thence East at right angles with said last mentioned line 6 inches; thence south on a line parallel with the West line of said Lots 1 and 2, 35 feet to a point on the South line of said Lot 2; thence East on the south line of said Lot 2, 25 feet; thence north on a line parallel with the West line of said Lots 1 and 2, 21 feet; thence East on a line parallel with the North line of said Lot 1, 26 feet; thence North on a line parallel with the West line of said Lots 1 and 2 to the south line of Chestnut Street; thence West along the South line of Chestnut Street to the place of beginning, Washington County, Minnesota. Abstract Property. 9 EXHIBIT B Lease 10 LEASE AGREEMENT THIS LEASE AGREEMENT (“Lease”) is made and entered into this 2nd day of August, 2019 (the “Effective Date”), by and between City of Stillwater, Minnesota, a Minnesota Municipal corporation (the “Landlord”), and Shorty Cleaner Launder, Inc. a Minnesota corporation (the “Tenant”). Landlord and Tenant may be referred to collectively herein as the “parties” or each a “party”. ARTICLE 1 PREMISES Landlord, for and in consideration of the rents, covenants and conditions hereinafter contained to be performed and observed by Tenant, does hereby demise and lease to Tenant the real estate legally described on Exhibit A attached hereto (the “Real Estate”), addressed as 121 Chestnut Street E., Stillwater, Minnesota, with all improvements located therein, existing fixtures and any appurtenant parking areas, driveways and landscaped areas (collectively, the “Improvements”) (the Real Estate and Improvements are collectively referred to herein as the “Premises”). ARTICLE 2 TERM Tenant shall have and hold the Premises for and during the term commencing immediately upon Landlord’s acquisition of title to and the right of possession of the Premises in the condemnation action entitled City of Stillwater v. Joleen M. Bourdaghs, et al., Washington County District Court File No. 82-CV-19-2394 (the “Commencement Date”), and terminating on April 30, 2020 (the “Term”), unless extended by the parties in writing. This Lease is terminable at will by Tenant upon vacation and written notice to Landlord. ARTICLE 3 BASE RENT Tenant shall pay to Landlord on the Commencement Date, the sum of One and 00/100 Dollars ($1.00) as the full amount of Base Rent for the entire Term of the Lease. Landlord hereby acknowledges receipt of the entire amount of Base Rent as of the Effective Date. ARTICLE 4 ADDITIONAL RENT All amounts which Tenant is required to pay under the terms and provisions of this Lease, other than Base Rent, including but not limited to the amounts payable by Tenant pursuant to Articles 10, 12, and 13, shall be considered as “Additional Rent”. 11 ARTICLE 5 USE OF PREMISES The Premises shall be used by Tenant for a commercial dry-cleaning plant and retail location. Tenant has obtained all necessary or required permits and licenses for its use of the Premises and shall use the Premises in strict compliance with any applicable local, state or federal rules, regulations, laws, zoning, and environmental or Hazardous Material (as later defined) laws or regulations. Tenant agrees not to commit a nuisance in or upon the Premises so as to substantially interfere with the comfort and safety of others. ARTICLE 6 TENANT’S ACCEPTANCE OF THE PREMISES/CONDITION Landlord will not be obligated to construct or install any improvements in or to the Premises. Landlord makes no representation, covenant or warranty of any kind, character or nature concerning the Premises or otherwise. Tenant accepts the Premises in “as-is”, “where-is”, and “with all faults” condition. ARTICLE 7 RESERVED ARTICLE 8 FIXTURES, FURNITURE, AND EQUIPMENT Landlord agrees that all trade fixtures, furniture, equipment, or other personal property of whatever kind and nature kept or installed on the Premises by Tenant shall not become the property of the Landlord or a part of the realty no matter how affixed to the Premises and shall be removed by Tenant, on or before the termination of this Lease or any renewal. Any trade fixtures, furniture, equipment, or other personal property of whatever kind and nature installed or provided to the Premises by Landlord shall at all times remain the property of Landlord. Tenant agrees that it shall be fully responsible for the repair of any damage caused to the Premises by the removal of any trade fixtures, furniture, equipment, or other personal property. ARTICLE 9 ALTERATIONS, TITLE TO AND REMOVAL OF IMPROVEMENTS Except for non-structural alterations or improvements that in the aggregate do not exceed $5,000.00 during any calendar year period, Tenant may not without Landlord’s prior written consent, remodel or make any alterations to the Premises. Tenant shall have no authority to create or place any lien or encumbrance of any kind whatsoever upon or in any manner to bind the interest of the Landlord in the Premises, and 12 Tenant covenants and agrees promptly to pay all sums legally due and payable by it on account of any labor performed on the Premises upon which any lien is or could be asserted. ARTICLE 10 REPAIRS, MAINTENANCE AND SIGNAGE Tenant shall, at all time during the Term and any renewal thereof, at its own cost and expense, keep and maintain the Premises. If the improvements on the Premises are damaged or destroyed, Tenant may at its sole option and expense repair and restore the improvements or Tenant may terminate the Lease and vacate the Premises. Landlord agrees to complete all snow removal required for the safe maintenance of the parking lot at the Premises. Tenant shall be permitted to maintain current signage on the Premises during the Term of the Lease. Tenant shall maintain all signage at its sole cost and expense. ARTICLE 11 REAL ESTATE TAXES AND SPECIAL ASSESSMENTS Landlord shall be responsible for the payment of all real estate taxes and current and future installments of special assessments covering the Premises during the Term and any renewal thereof. ARTICLE 12 UTILITIES During the Term, any renewal thereof, and thereafter in the event Tenant holds over, Tenant agrees that it shall pay all costs for water, sewer, gas and electric, heating and cooling, garbage and any other utilities used, or consumed upon or in connection with the Premises, as and when the charges for the same shall become due and payable. ARTICLE 13 INSURANCE Tenant hereby covenants and agrees that it shall at all times during the Term and any renewal thereof, obtain and maintain and keep in force and effect the following insurance: a. A comprehensive general liability insurance policy with a combined limit of not less than Seven Hundred Fifty Thousand and 00/100 Dollars ($750,000.00) per occurrence and One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00) in the aggregate, against claims for personal injury, death or property damage occurring in, on or about the Premises. Any deductible amount shall be paid by Tenant; and b. A policy covering Tenant’s contents and other personal property, inventory, machinery, and trade fixtures, satisfactory to Landlord, which shall include a waiver of subrogation as to Landlord. 13 ARTICLE 14 RESERVED ARTICLE 15 RESERVED ARTICLE 16 RESERVED ARTICLE 17 ASSIGNMENT AND SUBLETTING Tenant shall not sublet, sell, assign, mortgage, pledge, or in any manner transfer this Lease or any estate or interest thereunder, without the prior written consent of Landlord. Any assignment or subletting permitted by Landlord hereunder shall not release Tenant from any of its Lease obligations. ARTICLE 18 DEFAULT AND REMEDIES OF LANDLORD If Tenant shall fail to: (i) promptly keep and perform any other obligations of this Lease, strictly in accordance with the terms of this Lease, and shall continue in default for a period of thirty (30) days after written notice thereof by Landlord of default and demand of performance (and Tenant is not diligently proceeding to cure a non-monetary default), then and in any such event and as often as any such event shall occur; and upon such default: (1) Landlord may declare the Term or any renewal thereof ended, and enter into said Premises with process of law and expel Tenant or any person occupying the same in or upon said Premises; such reentry shall not work a forfeiture of the rents to be paid nor affect the covenants to be performed by Tenant. ARTICLE 19 RESERVED ARTICLE 20 RESERVED 14 ARTICLE 21 AMENDMENTS No waivers, alterations or modifications of this Lease or any agreements in connection therewith shall be valid unless in writing duly executed by both Landlord and Tenant herein. ARTICLE 22 RECORDING This Lease shall not be recorded. ARTICLE 23 SURRENDER OF PREMISES Tenant shall, after the last day of the Term or Renewal Term, if applicable, or upon any earlier termination, surrender and yield the Premises to Landlord. ARTICLE 24 SERVICE OF NOTICE Every notice, approval, consent or other communication authorized or required by this Lease shall not be effective unless the same shall be in writing and sent postage prepaid by United States registered or certified mail, return receipt requested, as follows: If to Landlord at: City Administrator City of Stillwater 216 4th Street North Stillwater, MN 55082 With a copy to: Peter Mikhail LeVander, Gillen & Miller, P.A. 633 South Concord St. Suite 400 South St. Paul, MN 55075 If to Tenant at: Shorty Cleaner Launder, Inc. 121 Chestnut Street E. Stillwater, MN 55082 With a copy to: Messerli Kramer P.A. (DSS) 100 S 5th Street #1400 Minneapolis MN 55402 or to such other address as either party may designate by notice given from time to time in accordance with this Article 24. Any notice given in accordance with the provisions of this Article 24 shall be deemed to have been given as of the date occurring two (2) days after such notice shall have been placed for mailing with the United States Postal Service. The amounts 15 payable by Tenant to Landlord hereunder shall be paid to the address designated by Landlord from time to time. ARTICLE 25 HOLDING OVER In the event Tenant continues to occupy the Premises after the last day of the Term hereby created, or after the last day of the Renewal Term, if applicable, Tenant shall pay all incidental and consequential damages sustained by Landlord as a result of any such holdover, including but not limited to damages for the delay in Landlord’s construction or demolition plans for the Premises. ARTICLE 26 RESERVED ARTICLE 27 CAPTIONS The captions appearing in this Lease are inserted only as a matter of convenience and in no way define, limit, construe or describe the scope or intent of such Articles of this Lease or in any way affect this Lease. ARTICLE 28 INVALIDITY OF PROVISIONS If any term, covenant, condition or provision of this Lease or the application thereof, to any person or circumstance shall, at any time, or to any extent, be invalid or unenforceable, the remainder of this Lease or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term, covenant, condition and provision of this Lease shall be valid and enforceable to the fullest extent permitted by law. ARTICLE 29 LANDLORD’S ACCESS TO PREMISES Landlord shall have reasonable rights of access to the Premises after reasonable notice and during normal business hours for the purpose of inspecting the condition thereof from time to time throughout the Term of this Lease and any renewals thereof. In the event of an emergency, Landlord shall have the immediate right to access the Premises, without prior notice to Tenant. 16 ARTICLE 30 ENTIRE AGREEMENT This Lease entered into between Landlord and Tenant as to the Premises supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the Premises and it contains all of the covenants, agreements and other obligations between the parties in respect to said Premises. ARTICLE 31 LIABILITY OF LANDLORD Landlord and its members, partners, officers, directors, shareholders, attorneys, parents and subsidiaries, related or affiliated corporations or other entities of Landlord will have absolutely no personal liability with respect to any provision of this Lease or any obligation or liability arising from this Lease. ARTICLE 32 GOVERNING LAW; VENUE This Lease will be governed by and construed according to the laws of the State of Minnesota. Any actions or proceedings arising under this Lease, in connection with the Premises will be venued in state or federal courts located in Washington County, Minnesota, to the exclusion of all other venues. Tenant hereby expressly consents to the exercise of personal jurisdiction over Tenant by such courts. ARTICLE 33 AUTHORITY Landlord and Tenant hereby represent and warrant that each individual executing this Lease on behalf of said entity is duly authorized to execute and deliver this Lease on behalf of said entity and that this Lease is binding upon said entity in accordance with its terms. ARTICLE 34 BROKERS Each party warrants to the other that it has had no dealings with any broker or agent in connection with this Lease. Notwithstanding the foregoing, each party shall hold harmless the other party from all damages resulting from any claims that may be asserted against the other party by any broker, finder, or other person, with whom the other party has or purportedly has dealt. ARTICLE 35 RESERVED 17 ARTICLE 36 RESERVED ARTICLE 37 TIME OF THE ESSENCE With respect to all acts of the Tenant and Landlord required under or pursuant to this Lease, time is of the essence. ARTICLE 38 COUNTERPARTS This Lease may be executed in counterparts, each of which shall be deemed an original, but which taken together shall constitute one and the same instrument. Electronic or facsimile signatures shall be deemed sufficient to create a binding obligation hereunder and shall have the same force and effect as an original signature of such party. ARTICLE 39 HAZARDOUS MATERIALS Tenant shall not keep or have in or on the Premises any article or thing which is deemed “hazardous” or “extra hazardous” by any responsible insurance company or under federal, state or local law, rule, regulation, code or ordinance except in compliance with all requirements of applicable law. To the extent caused by Tenant or its employees, agents, or invitees, Tenant shall indemnify and save harmless Landlord against all liabilities, damages, claims, fines, penalties, costs and other expenses, including, reasonable attorneys’ fees, which may be imposed upon, incurred by, or asserted against Landlord by reason of any use or condition of the Premises or any part thereof, including, without limitation, liability resulting from the use, storage, generation, or release of any “hazardous substance,” “hazardous waste,” “pollutant” or “contaminant” (as such terms may be now or hereafter defined under any applicable federal, state, or local statute, ordinance, or regulation, collectively referred to as “Hazardous Material”). [Remainder of page left blank intentionally; signature page follows.] 18 IN WITNESS WHEREOF, the parties hereto have set their hands as of the day and year first above written. LANDLORD: City of Stillwater, a Minnesota municipal corporation By: ______________________________________ Ted Kozlowski Its: Mayor By: ______________________________________ Beth Wolf Its: City Clerk 19 TENANT: Shorty Cleaner Launder, Inc. a Minnesota corporation By: ______________________________________ Print Name: _______________________________ Its: ______________________________________ 20 EXHIBIT A LEGAL DESCRIPTION PID #28.030.20.41.0082 The East 49 feet of Lot 1, and the East 49 feet of the North 1/2 of Lot 2, Block 30, Original Town (now City) of Stillwater, excepting therefrom that part of Lots 1 and 2 of Block 30 of the original Town (now City) of Stillwater, described as follows: Beginning at a point on the south line of Chestnut Street 49 feet 6 inches east of the NW corner of said Lot 1, and running thence South on a line parallel with the West line of said Lots 1 and 2, 65 feet; thence East at right angles with said last mentioned line 6 inches; thence south on a line parallel with the West line of said Lots 1 and 2, 35 feet to a point on the South line of said Lot 2; thence East on the south line of said Lot 2, 25 feet; thence north on a line parallel with the West line of said Lots 1 and 2, 21 feet; thence East on a line parallel with the North line of said Lot 1, 26 feet; thence North on a line parallel with the West line of said Lots 1 and 2 to the south line of Chestnut Street; thence West along the South line of Chestnut Street to the place of beginning. AND The East 75 feet of the South 1/2 of Lot 2, Block 30, Original Town (now City) of Stillwater, excepting therefrom that part of Lots 1 and 2 of Block 30 of the Original Town (now City) of Stillwater, described as follows: Beginning at a point on the south line of Chestnut Street 49 feet 6 inches east of the NW corner of said Lot 1, and running thence South on a line parallel with the West line of said Lots 1 and 2, 65 feet; thence East at right angles with said last mentioned line 6 inches; thence south on a line parallel with the West line of said Lots 1 and 2, 35 feet to a point on the South line of said Lot 2; thence East on the south line of said Lot 2, 25 feet; thence north on a line parallel with the West line of said Lots 1 and 2, 21 feet; thence East on a line parallel with the North line of said Lot 1, 26 feet; thence North on a line parallel with the West line of said Lots 1 and 2 to the south line of Chestnut Street; thence West along, the South line of Chestnut Street to the place of beginning. AND The East 100 feet of the North 1/2 of Lot 3, Block 30, Original Town (now City) of Stillwater, Washington County, Minnesota. PID #28.030.20.41.0081 All that part of Lots 1 and 2 of Block 30 of the Original Town (now City) of Stillwater, described as follows: Beginning at a point on the South line of Chestnut Street, 75 feet east of the NW corner of said Lot 1 and running thence South on a line parallel with the West line of said Lots 1 and 2, 79 feet; thence East at right angles with said last mentioned line 26 feet; thence North on a line parallel with the west line of said Lots 1 and 2, 79 feet to the south line of Chestnut Street; thence West 26 feet along the south line of Chestnut Street to the place of beginning. AND All that part of Lots 1 and 2 of Block 30 of the Original Town (now City) of Stillwater, described as follows: Beginning at a point on the south line of Chestnut Street 49 feet 6 inches east of the NW corner of said Lot 1, and running thence South on a line parallel with the West line of said Lots 1 and 2, 65 feet; thence East at right angles with said last mentioned line 6 inches; thence south on a line parallel with the West line of said Lots 1 and 2, 35 feet to a point on the South line of said Lot 2; thence East on the south line of said Lot 2, 25 feet; thence north on a line parallel with the West line of said Lots 1 and 2, 21 feet; thence East on a line parallel with the North line of said Lot 1, 26 feet; thence North on a line parallel with the West line of said Lots 1 and 2 to the south line of Chestnut Street; thence West along the South line of Chestnut Street to the place of beginning, Washington County, Minnesota. STAFF REQUEST ITEM j Department: Fire J Date: July 30, 2019 DESCRIPTION OF REQUEST (Briefly outline what the request is) Council approval to purchase and install sun control safety film on fire station apparatus bay doors. FINANCIAL IMPACT (Briefly outline the costs, if any, that are associated with this request and the proposed source of the funds needed to fund the request) Council approved this request in the 2019 FD budget. Total cost per the quote is $19,794. The amount budgeted was $15,000. The FD budget does have funds available to cover the added cost based on savings from other Capital purchases. ADDITIONAL INFORMATION ATTACHED Yes X No --- ALL COUNCIL REQUEST ITEMS MUST BE SUBMITTED TO THE CITY CLERK A MINIMUM OF FIVE WORKING DAYS PRIOR TO THE NEXT REGULARLY SCHEDULED COUNCIL MEETING IN ORDER TO BE PLACED IN THE COUNCIL MATERIAL PACKET. Submitted by: Stuart W. Glaser, Fire Chief Date: July 30, 2019 At f Pf:sJ AL . (2, Tt I\D )1-t fN / s J//J.A 1t)R.._ Sun Control of Minnesota 2425 Rice Street St. Paul, MN 55113 Phone# 651-490-1060 , Stillwater Fire Department i 250 Maryknoll Dr N ' Stillwater, MN 55082 Expiration Date g ·un Cont/toQ OF MINNESOTA "The Window Film Proleuionals" accounting@suncontrolmn .com Supply and Install Sun Control Window Film as requested : LLumar Magnum series N-1020 SR PS6 . This would be applied ta all bay doors and alarmfsquad room windows with Impact Protection Adhesive applied . Safety Film : $12,962.00 IPA : $6,832 .00 Estimate 7/29/2019 7273 ' -· -..... .J Terms 19,794.00 Sales Tax St. Paul 0 .00 -----~---··--·· I I Total L .... _ City of StillwaterSewer Rate StudyPresenter: Patty Kettles Scope and Objectives2Conduct a comprehensive review of the City’s Sewer UtilityRecommend rates that will provide sufficient revenues to fund operations and capital maintenance Historical Performance3‐$450‐$400‐$350‐$300‐$250‐$200‐$150‐$100‐$50$0Actual Actual Actual Budget Budget2015 2016 2017 2018 2019ThousandsNet Income (Loss) Historical Performance4$0$100$200$300$400$500$600Actual Actual Actual Budget Budget2015 2016 2017 2018 2019ThousandsEnding Cash Historical Performance5$0$50$100$150$200$250$300Actual Actual Actual Budget Budget2015 2016 2017 2018 2019THOUSANDSBorrowed Cash Assumptions•1% Annual revenue growth•2019‐2024 CIP•Sewer Fund will repay internal loans; 3 years / start in 2021•Operating expenses increase 3‐5%•8.6% increase in Met Council charge 2020•New sewer debt to finance CIP; term = 10 years rate = 4% 2019‐2029 CIPUtility FundG.O. Revenue Bonds Totals201995,900 - 95,900 202066,600 500,000 566,600 2021157,400 250,000 407,400 202280,100 250,000 330,100 202390,900 350,000 440,900 202485,700 350,000 435,700 202585,000 - 85,000 202685,000 - 85,000 202790,000 - 90,000 202890,000 - 90,000 202995,000 - 95,000 Total 1,021,600 1,700,000 2,721,600 2019 ‐2029 Project DetailYear Project Totals2019 Computer/Laptop 9002019 Lift Station Bldg Maintenance 30,0002019 Lift Station Upgrades 65,0002020 iPad/Tablet Replacement 7002020 Computer/Laptop 9002020 Lift Station Upgrades 65,0002020 Lift Station Conversions 500,0002021 Computer/Laptop 9002021 Switch 1,5002021 Lift Station Upgrades 65,0002021 Generators 90,0002021 Lift Station Conversions 250,0002022 Security Camera Replacement 5002022 Security Camera Replacement 8002022 Computer/Laptop 1,8002022 Copier Replacement 2,0002022 Lift Station Upgrades 75,0002022 Lift Station Conversions 250,0002023 Computer/Laptop 9002023 Sewer Van Monitoring Equipment 15,0002023 Lift Station Upgrades 75,0002023 Lift Station Conversions 350,0002024 iPad/Tablet Replacement 7002024 Lift Station Upgrades 85,0002024 Lift Station Conversions 350,0002025 Misc. 85,0002026 Misc. 85,0002027 Misc. 90,0002028 Misc. 90,0002029 Misc. 95,0008 Goals9Fund operationsFund capital outlay (cash or debt financed)Repay cash borrowedFund a reserve3 months of operations1 year of debt service Scenario 1 – Issue Debt Annually 2020‐2024Sewer Rates 2019 2020 2021 2022 2023 2024Proposed Rate IncreaseBilled Quarterly0 - 10,000 gallons (minimum charge) 43.00$ 49.45$ 56.87$ 58.57$ 60.33$ 62.14$ >10,000 gallons - per 1,000 gallons 5.60 6.44 7.41 7.63 7.86 8.09 15,000 gal/quarter User 2019 2020 2021 2022 2023 2024Fixed Charge 43.00$ 49.45$ 56.87$ 58.57$ 60.33$ 62.14$ Volume Charge 28.00$ 32.20$ 37.03$ 38.14$ 39.29$ 40.46$ Total Quarterly Sewer Bill 71.00$ 81.65$ 93.90$ 96.71$ 99.62$ 102.60$ 3.00%NA 15.00% 15.00% 3.00% 3.00%10 Scenario 2 – Issue Debt in 2020, Cash‐Finance the RestSewer Rates 2019 2020 2021 2022 2023 2024Proposed Rate IncreaseBilled Quarterly0 - 10,000 gallons (minimum charge) 43.00$ 50.74$ 59.87$ 61.67$ 63.52$ 65.43$ >10,000 gallons - per 1,000 gallons 5.60 6.61 7.80 8.03 8.27 8.52 15,000 gal/quarter User 2019 2020 2021 2022 2023 2024Fixed Charge 43.00$ 50.74$ 59.87$ 61.67$ 63.52$ 65.43$ Volume Charge 28.00$ 33.04$ 38.99$ 40.16$ 41.36$ 42.60$ Total Quarterly Sewer Bill 71.00$ 83.78$ 98.86$ 101.83$ 104.88$ 108.03$ 3.00%NA 18.00% 18.00% 3.00% 3.00%11 $66.70 $60.75 $133.92 $76.56 $77.85 $78.50 $71.00 $81.65 83.78 $‐ $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00Bayport 2019Cottage Grove 2019Forest Lake 2020Lake Elmo 2019Oakdale 2019Oak Park Heights 2019Stillwater‐2019Stillwater‐2020 BondsStillwater‐2020 CashResidential Sewer Bill15,000 gal/qtr12 Recommendations:EstablishEstablish User Rates for 3‐5 year periodReviewReview annually upon budget developmentMonitorMonitor Sewer Fund performance Questions?Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly‐owned subsidiary of Baker Tilly Virchow Krause, LLP, an accounting firm. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. 14 %2$5'$*(1'$ %RDUGRI&RPPLVVLRQHUV )UDQ0LURQ'LVWULFW 6WDQ.DUZRVNL&KDLU'LVWULFW *DU\.ULHVHO'LVWULFW :D\QH$-RKQVRQ'LVWULFW /LVD:HLN'LVWULFW -XO\$0 Assistive listening devices are available for use in the County Board Room If you need assistance due to disability or language barrier, please call (651) 430-6000 EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER 5HFRJQLWLRQRI.HLWK&DUOVRQ([HFXWLYH'LUHFWRU0LQQHVRWD,QWHU&RXQW\$VVRFLDWLRQ0,&$ 5ROO&DOO 3OHGJHRI$OOHJLDQFH &RPPHQWVIURPWKH3XEOLF 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 Clerk or the County Administrator. The County Board Chair will ask you to come to the podium, state your name and city of residence, 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. &RQVHQW&DOHQGDU5ROO&DOO9RWH 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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ssistive listening devices are available for use in the County Board Room If you need assistance due to disability or language barrier, please call (651) 430-6000 EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER &RPPXQLW\6HUYLFHV5LFN5R\:RUNIRUFH&HQWHU'LYLVLRQ0DQDJHU $ $SSURYDOWRDSSO\IRUWKH0LQQHVRWD3DWKZD\VWR3URVSHULW\&RPSHWLWLYH*UDQWIRU6WDWH)LVFDO <HDUVDQGDGPLQLVWHUHGE\WKH0LQQHVRWD'HSDUWPHQWRI(PSOR\PHQWDQG (FRQRPLF'HYHORSPHQWDVDXWKRUL]HGLQWKH/DZVRI0LQQHVRWD&KDSWHU6HF 6XEGH *HQHUDO$GPLQLVWUDWLRQ0ROO\2 5RXUNH&RXQW\$GPLQLVWUDWRU &RPPLVVLRQHU5HSRUWV&RPPHQWV4XHVWLRQV 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. %RDUG&RUUHVSRQGHQFH $GMRXUQ %RDUG:RUNVKRSZLWK&RPPXQLW\6HUYLFHV5LFN5R\:RUNIRUFH&HQWHU'LYLVLRQ0DQDJHU $8SGDWHRQWKH*UHDWHU0HWUR:RUNIRUFH&RXQFLO 3HUVRQQHO&RPPLWWHH &RPPXQLW\&RUUHFWLRQV7RP$GNLQV'LUHFWRU $$GRSWDUHVROXWLRQSURFODLPLQJ-XO\DV3UHWULDO3UREDWLRQDQG3DUROH6XSHUYLVLRQ:HHN Washington : :County 216 4th Street N, Stillwater, MN 55082 651‐430‐8800 www.ci.stillwater.mn.us AGENDA CITY COUNCIL MEETING July 30, 2019 REGULAR MEETING 7:00 P.M. I. CALL TO ORDER II. ROLL CALL III. PLEDGE OF ALLEGIANCE IV. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS 1. Proclamation: Stillwater High School Boys Golf Team State Champion Golfer Brock Winter 2. Community Thread Budget Request – Sally Anderson, Executive Director 3. Youth Service Bureau Budget Request – Robert Sherman, Executive Director 4. Washington County Historical Society Budget Request – Brent Peterson, Executive Director 5. Comprehensive Financial Report Audit Review – Chris Knopik, ClifftonLarsonAllen V. 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. VI. STAFF REPORTS 6. Police Chief 7. Fire Chief 8. City Clerk 9. Community Development Director 10. Public Works Director 11. Finance Director 12. City Attorney 13. City Administrator VII. CONSENT AGENDA ‐ 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. 14. July 16, 2019 regular, recessed and closed session meeting minutes 15. Payment of Bills 16. Bagpipes and Bonfires Event and Temporary Liquor License 17. Rivertown Art Festival Event, Contract and Temporary Liquor License 18. State Historic Preservation grant for the 2020 Statewide Historic Preservation Conference ‐ Resolution 19. State Historic Preservation grant for updates to the Historic Preservation Commission Enabling Ordinance Amendment Project – Resolution 20. Approve Stipulation Regarding Quick Take and Lease for Shorty’s (Additional information available Tuesday) VIII. PUBLIC HEARINGS – None IX. UNFINISHED BUSINESS X. NEW BUSINESS 21. Bakertilly Sewer Rate Study 22. Parking Capacity Study Consultant Selection XI. COUNCIL REQUEST ITEMS XII. ADJOURN City o� g tiQQwatetc, u\Jt.Ltutegota cp tcocQamatio" WHEREAS, Brock Winter was a Senior on the Stillwater Area High School (SAHS) Boys Golf Team; and WHEREAS, Brock is the Suburban East Conference Individual Champion; and WHEREAS, Brock is the Class AAA individual State Golf Champion - the first in SAHS history; and WHEREAS, it was an 8 foot putt that gave Brock the victory by one stroke; and WHEREAS,for his efforts Brock has been awarded a scholarship to North Dakota State University. NOW, THEREFORE, I, Ted Kozlowski, by virtue of the authority vested in me as Mayor of the City of Stillwater, do hereby proclaim July 31, 2019-Brock Winter Day in the City of Stillwater and encourage the citizens of Stillwater to congratulate Brock on his accomplishments. Presented by the Stillwater City Council this 30th day of July, 2019. CITY OF STILLWATER, MINNESOTA REPORT PREPARED BY SHARON PROVOS, FINANCE DIRECTOR SAM MAGUREANU, ASSISTANT FINANCE DIRECTOR & THE FINANCE DEPARTMENT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2018 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, 2018 TABLE OF CONTENTS i INTRODUCTORY SECTION Page Letter of Transmittal ......................................................................................................................... 3 GFOA Certificate of Achievement .................................................................................................... 7 Organizational Chart ........................................................................................................................ 8 List of Principal Officers ................................................................................................................... 9 FINANCIAL SECTION Independent Auditors’ Report ......................................................................................................... 10 Management Discussion and Analysis ........................................................................................... 13 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ................................................................................................... 24 Statement of Activities ........................................................................................................ 25 Fund Financial Statements: Balance Sheet – Governmental Funds ............................................................................... 27 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ............................................................................................. 29 Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds ........................................................................... 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes In Fund Balances of Governmental Funds to the Statement of Activities ...................... 32 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ..................................................... 33 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – St. Croix Valley Recreation Center Fund ............ 34 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Library Fund ....................................................... 35 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Parks Fund ......................................................... 36 Statement of Net Position – Proprietary Funds ................................................................... 37 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ......................................................................... 38 Statement of Cash Flows – Proprietary Funds .................................................................... 39 Notes to the Financial Statements ............................................................................................ 40 Required Supplementary Information: PERA Schedule of the City’s Proportionate Share of Net Pension Liability ............................... 83 PERA Schedule of City Contributions ....................................................................................... 84 Schedule of Changes in Stillwater Fire Relief Association’s Net Pension Liability (Asset) ............................................................................................... 85 Schedule of City Contributions to Stillwater Fire Relief Association .......................................... 86 Schedule of Changes in the Total OPEB Liability and Related Ratios ...................................... 87 Notes to the Required Supplementary Information ................................................................... 88 Combining and Individual Fund Financial Statements: Combining Balance Sheet – Nonmajor Governmental Funds ................................................... 91 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds ........................................... 93 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – Special Events Fund ................................................... 95 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – Community Beautification Fund .................................. 96 CITY OF STILLWATER, MINNESOTA Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2018 TABLE OF CONTENTS ii Combining and Individual Fund Financial Statements (Continued): .................................... Page Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – Washington County Recycling Grant Fund ........................................ 97 Other Supplementary Information: Schedule of Special Revenue Fund – Library Donations Fund – Balance Sheet ...................... 98 Schedule of Special Revenue Fund – Library Donation Fund – Statement of Revenues, Expenditures, and Changes in Fund Balance ............................................. 100 Schedule of Debt Service Fund – Balance Sheet ................................................................... 102 Schedule of Debt Service Fund – Statement of Revenues, Expenditures, and Changes in Fund Balance ................................................................................................ 106 Schedule of TIF Districts Fund – Balance Sheet .................................................................... 110 Schedule of TIF Districts Fund – Statement of Revenues, Expenditures, and Changes in Fund Balance ................................................................................................ 112 Schedule of Proprietary Fund – Parking Fund – Statement of Net Position ............................ 114 Schedule of Proprietary Fund – Parking Fund – Statement of Revenues, and Changes in Net Position ............................................................................................ 115 Schedule of Proprietary Fund – Parking Fund – Statement of Cash Flows ............................. 116 STATISTICAL SECTION Financial Trends Net Position by Component, Last Ten Fiscal Years ................................................................ 117 Changes in Net Position, Last Ten Fiscal Years ..................................................................... 119 Fund Balances, Governmental Funds, Last Ten Fiscal Years ................................................ 123 Changes in Fund Balances, Governmental Funds, Last Ten Fiscal Years ............................. 125 Revenue Capacity Assessed and Estimated Actual Value of Property, Last Ten Fiscal Years ............................. 127 Property Tax Rates – Per $1,000 of Assessed Tax Capacity Value, Direct and Overlapping Government, Last Ten Fiscal Years ............................................ 129 Property Tax Levies and Collections, Last Ten Fiscal Years .................................................. 131 Principal Taxpayers, Current Year and Nine Years Ago ......................................................... 133 Debt Capacity Ratio of Outstanding Debt by Type, Last Ten Fiscal Years ..................................................... 134 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Debt per Capita .................................................................... 136 Direct and Overlapping Governmental Activities Debt ............................................................ 137 Computation of Legal Debt Margin, Last Ten Fiscal Years ..................................................... 138 Demographic and Economic Information Demographic and Economic Statistics, Last Ten Fiscal Years ............................................... 140 Principal Employers, Current Year and Nine Years Ago ......................................................... 141 Full-Time Equivalent Employees, City Government Employees by Function/Program, Last Ten Fiscal Years ......................................................................... 142 Operating Information Capital Asset Statistics by Function/Program, Last Ten Fiscal Years ..................................... 143 Operating Indicators by Function/Program, Last Ten Fiscal Years ......................................... 144 OTHER REPORTS SECTION Report on Minnesota Legal Compliance....................................................................................... 146 INTRODUCTORY SECTION 3 June 26, 2019 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 principles (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, 2018. 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 CliftonLarsonAllen 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, 2018, 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 unmodified opinion that the City’s financial statements for the fiscal year ended December 31, 2018, 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. 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 5,814 acres and serves a population of 19,915. 4 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 I.A 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 t o the extent that actual receipts exceed the estimate. Department directors may make transfers of appropriations within a department, but transfers of appropriations between departm ents require council approval. Budget-to-actual comparisons for the General Fund, St. Croix Valley Recreation Center, Library, Parks, Special Events, Downtown Beautification and Washington County Recycling which are the only funds for which an annual budget has been adopted, are provided in this report on pages 33 through 36 and 94 through 96. 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. In the early 1970s, the City’s residents and business owners began to encourage the historic preservation of commercial and residential buildings in the community. This movement has gathered momentum, acceptance and regulatory authority since its beginning and has been at least partially responsible for recapturing the historical rivertown character of t he downtown business district. It has also encouraged the maintenance and restoration of historic homes in the City’s residential neighborhoods. Many residences, businesses and shops are housed in buildings more than 100 years old. Downtown Stillwater and eight residential structures are on the National Register of Historic Places. Another 61 homes are estimated to be eligible for the National Register. A number of the City’s older homes have been restored to their historical character and are open for public tours. In addition, a substantial downtown infrastructure improvement project was completed in 1991 and 1992, which included the separation and replacement of the 100-year-old storm sewer and sanitary sewer systems, new streets and sidewalks, and new street lighting. This restoration and preservation movement has generated a significant tourist trade that is important to the City’s economy. The 2030 Comprehensive Plan calls for continued growth of the City toward the west. The remaining undeveloped area was recently annexed into the City and encompasses approximately 670 acres. Of this area, 340 net acres are guided for residential development. At build-out, this expansion area could yield about 1,300 housing units, 60 acres of office and non-retail commercial property along State Highway 36, and five acres of retail. 5 Ten (10) residential developments are currently building out with the potential for another 100 home sites. The estimated price points for these single-family homes range from under $350,000 to over $700,000. The City has recently completed development/redevelopment activities in the downtown area: 1) the opening of two (2) new hotels and a hotel addition to a third hotel in downtown Stillwater; 2) MNDOT rehabilitation of the historic Lift Bridge completing a pedestrian/bike recreation Loop Trail from downtown Stillwater into W isconsin south to the new St. Croix Crossing Bridge and trail back to downtown; 3) sidewalk improvement projects in downtown area. The historic downtown Lift Bridge is closed to be refurbished as a pedestrian/biking trail and is scheduled for opening in 2019. Long-term financial planning. The City Council and staff are updating the 5-year Capital Improvement Plan (CIP) that identifies major projects and capital equipment purchases for years 2019-2023. Many of these projects have been pending for years awaiting various forms of approval and funding sources. Total projects preliminarily identified amount to $70,822,550. 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 vision and goals. Major Initiatives The City recently completed remodeling an existing space at City Hall for Police Department expansion and other department needs. The City also updated the mechanical items, technology, and security systems at City Hall. A major project to replace the dome and field turf at the St. Croix Valley Recreation Center on the west side of Stillwater is currently underway. The Stillwater 2040 Comprehensive Plan has been completed and has been submitted to the Met Council for final review and approval. Other major upcoming initiatives include implementation of the Bridgeview Park Plan, the Aiple Park Plan, the Downtown Pedestrian Plaza and completion of the St. Croix Riverbank Restoration and Walkway project from downtown Stillwater to the southern city limits. 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 crite ria. 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, 2017. This marks the twenty-fifth 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 2018 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. 6 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 manag ement of the financial operation of the City. Respectfully submitted, J. Thomas McCarty Sharon Provos City Administrator Finance Director 7 8 CITY OF STILLWATER, MINNESOTA Organizational Chart December 31, 2018 CITIZENS OF STILLWATER CITY COUNCIL BOARDS AND CITY COMMISSIONS ATTORNEY CITY ADMINISTRATOR/ TREASURER ADMINISTRATION COMMUNITY FIRE POLICE DEPT.DEVELOPMENT DEPT.DEPT. DEPT. ENGINEERING/ FINANCE BUILDING PUBLIC WORKS DEPT.INSPECTIONS DEPT. DEPT. ENGINEERING PUBLIC WORKS DEPT.DEPT. 9 CITY OF STILLWATER, MINNESOTA LIST OF PRINCIPAL OFFICERS December 31, 2018 ELECTED OFFICIALS Mayor Ted Kozlowski Term Expires: January 2019 Councilmembers Ward 1 Ryan Collins Term Expires: January 2022 Ward 2 David Junker Term Expires: January 2021 Ward 3 Tom Weidner Term Expires: January 2021 Ward 4 Mike Polehna Term Expires: January 2022 APPOINTED OFFICIALS J. Thomas McCarty, City Administrator/Treasurer Kori Land, City Attorney Sharon Provos, Finance Director William Turnblad, Community Development Director Stuart Glaser, Fire Chief Shawn Sanders, Public Works Director/City Engineer John Gannaway, Police Chief Mark Troendle, Library Director FINANCIAL SECTION 10 INDEPENDENT AUDITORS’ REPORT Honorable Mayor and Members of the City Council City of Stillwater, Minnesota Report on the Financial Statements 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), as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and f air presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that ar e appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policie s used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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, 2018, and the respective changes in financial position, the respective budgetary comparison for the general fund and the St. Croix Value Recreation Center, Library, and Parks special revenue funds and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Honorable Mayor and Members of the City Council City of Stillwater, Minnesota 11 Emphasis of a Matter During fiscal year ended December 31, 2018, the City adopted GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. As a result of the implementation of this standard, the County reported a restatement for the change in accounting principle (see Note 1 6.) Our auditors’ opinion was not modified with respect to the restatement. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedules of the City’s proportionate share of net pension liabilities and assets , schedules of pension contributions, and the schedule of changes in the total OPEB liability and related ratios as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial stateme nts, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certa in limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectiv ely comprise the City of Stillwater’s basic financial statements. The combining and individual fund financial statements, schedule of special revenue fund – library donation fund – balance sheet and statement or revenues, expenditures, and changes in fund balance, the schedule of debt service fund – balance sheet and schedule of revenues, expenditures, and changes in fund balances, the schedule of TIF districts – balance sheet and schedule of revenues, expenditures, and changes in fund balances, schedule of proprietary fund – parking fund – balance sheet, schedule of revenues, expenses, and changes in net position, and statement of cash flows, the introductory section, and statistical section are presented for purp oses of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements, schedule of special revenue fund – library donation fund –balance sheet and statement or revenues, expenditures, and changes in fund balance, the schedule of debt service fund – balance sheet and schedule of revenues, expenditures, and changes in fund balances, the schedule of TIF districts – balance sheet and schedule of revenues, expenditures, and changes in fund balances, and schedules of proprietary fund – parking fund – balance sheet, schedule of revenues, expenses, and changes in net position, and statement of cash flows (the supplementary information) is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information identified above is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Honorable Mayor and Members of the City Council City of Stillwater, Minnesota 12 The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. CliftonLarsonAllen LLP Minneapolis, Minnesota June 26, 2019 CITY OF STILLWATER, MINNESOTA Management’s Discussion and Analysis December 31, 2018 13 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, 2018. 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 6 of this report. FINANCIAL HIGHLIGHTS: The assets and deferred outflows of resources of the City of Stillwater exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $88,569,255 (net position). Of this amount, the City has a deficit of $30,161,255 in unrestricted net position. This consists of a deficit of $29,102,791 in governmental activities and $1,058,464 in business-type activities. The City’s total net position increased by $3,865,123. As of the close of the current f iscal year, the City of Stillwater’s governmental funds reported combined ending fund balance of $40,474,228 an increase of $2,958,520 in comparison with the prior year. Approximately 9% of this total amount or $3,670,736 is available for use within the City’s policies (unassigned fund balance). At the end of the current fiscal year, unassigned fund balance for the general fund was $3,670,736 or 33% of total general fund expenditures. The City of Stillwater’s total bonded debt increased by $2,910,000 (8%) during the current fiscal period. This was the net result of the City issuing the $5,935,000 G.O. Capital Outlay Bonds and paying its scheduled debt service payments. 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 position presents information on all of the City of Stillwater’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Stillwater is improving or deteriorating. Required Components of City of Stillwater's Annual Financial Report Summary Detail Management's Discussion and Analysis Basic Financial Statements Required and Optional Supplementary Information Government- wide Financial Statements Fund Financial Statements Notes to the Financial Statements CITY OF STILLWATER, MINNESOTA Management’s Discussion and Analysis (Continued) December 31, 2018 14 The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position 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 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 24 through 26 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 fina nce-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 seventeen 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 ten governmental funds are c ombined 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 27 through 36 of this report. CITY OF STILLWATER, MINNESOTA Management’s Discussion and Analysis (Continued) December 31, 2018 15 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 37 through 39 of this report. 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 40 through 81 of this report. Other information. The combining Nonmajor governmental fund statements referred to earlier can be found on pages 90 through 93 of this report. Other informational schedules and statements can be found on pages 94 through 115. GOVERNMENT-WIDE FINANCIAL ANALYSIS: As noted earlier, net position may serve over time as a useful indicator of a g overnment’s financial position. In the case of the City of Stillwater, assets and deferred outflows of resources exceeded liabilities and deferred inflows by $88,569,255 at the close of the most recent fiscal year. By far the largest portion of the City of Stillwater’s net position, $87,833,278, or 99%, 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. CITY OF STILLWATER, MINNESOTA Management’s Discussion and Analysis (Continued) December 31, 2018 16 GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED): Approximately 35% or $30,897,232 of net position represents net position subject to constraints imposed by external creditors, primarily bond covenants, and external donors. CITY OF STILLWATER'S NET POSITION Governmental activities Business-type activities Total 2018 2017 2018 2017 2018 2017 Current and other assets $ 49,650,119 $ 44,914,500 $ 1,796,935 $ 1,965,775 $ 51,447,054 $ 46,880,275 Capital assets 99,195,511 95,548,788 13,286,058 13,395,604 112,481,569 108,944,392 Total assets 148,845,630 140,463,288 15,082,993 15,361,379 163,928,623 155,824,667 Deferred outflows of resources 5,579,691 6,061,810 175,122 138,265 5,754,813 6,200,075 Non-current liabilities outstanding 67,830,054 47,674,755 2,686,222 1,071,990 70,516,276 48,746,745 Other liabilities 3,680,901 2,632,772 222,668 163,228 3,903,569 2,796,000 Total liabilities 71,510,955 50,307,527 2,908,890 1,235,218 74,419,845 51,542,745 Deferred inflows of resources 6,572,705 6,805,814 121,631 100,165 6,694,336 6,905,979 Net position: Net investment in capital assets 74,547,220 74,085,103 13,286,058 13,395,604 87,833,278 87,480,707 Restricted 30,897,232 29,073,515 - - 30,897,232 29,073,515 Unrestricted (29,102,791) (13,746,861) (1,058,464)768,657 (30,161,255) (12,978,204) Total net position $ 76,341,661 $ 89,411,757 $ 12,227,594 $ 14,164,261 $ 88,569,255 $ 103,576,018 At the end of the current fiscal year, the City of Stillwater is able to report positive balances in two of the three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities with unrestricted net position in the governmental activities and in total being the exception. Governmental activities. Governmental activities increased the City of Stillwater’s net position by $4,187,828. The most significant change in governmental net position is the result of investing of revenues from capital gra nts, special assessments, and tax increments into the construction or major improvements of the City’s capital assets and infrastructure. The City also received a capital contribution in the amount of $2,533,262 related to donated infrastructure and the City’s investment in infrastructure through grants. Business-type activities. Business-type activities decreased the City of Stillwater’s net position by $322,705. The most significant change in net position is a result of the investment in capital assets in the sanitary sewer fund and storm water fund. Note that the sanitary sewer fund had an increase of $253,140 in interfund payables due to the purchase of large equipment and operations. There was a rate increase implemented in 2018 to assist in repayment of this interfund payable. CITY OF STILLWATER, MINNESOTA Management’s Discussion and Analysis (Continued) December 31, 2018 17 GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED): The following chart summarizes the changes in net position for the current fiscal year: CITY OF STILLWATER'S CHANGES IN NET POSITION Governmental activities Business-type activities Total 2018 2017 2018 2017 2018 2017 Revenues: Program revenues: Charges for services $ 5,042,145 $ 4,074,339 $ 4,618,577 $ 4,012,828 $ 9,660,722 $ 8,087,167 Operating grants and contributions 1,000,747 868,811 - - 1,000,747 868,811 Capital grants and contributions 2,533,262 6,630,514 - - 2,533,262 6,630,514 General revenues: Property taxes 12,821,075 12,554,501 45,400 -12,866,475 12,554,501 Tax increment 1,512,869 1,443,648 - - 1,512,869 1,443,648 Lodging tax 237,665 218,821 - - 237,665 218,821 Franchise taxes 351,721 467,214 - - 351,721 467,214 Grants and contribution not restricted for a specific purpose 747,981 734,034 - - 747,981 734,034 Unrestricted investment earnings (loss) 496,595 390,082 37,942 39,079 534,537 429,161 Gain on disposal of capital assets 24,380 33,500 - - 24,380 33,500 Total revenues 24,768,440 27,415,464 4,701,919 4,051,907 29,470,359 31,467,371 Expenses: General government 4,564,749 4,456,152 - - 4,564,749 4,456,152 Public safety 6,390,804 6,692,653 - - 6,390,804 6,692,653 Public works 4,442,535 3,340,782 - - 4,442,535 3,340,782 Culture and recreation 3,683,368 4,861,962 - - 3,683,368 4,861,962 Economic development 277,549 291,330 - - 277,549 291,330 Interest on long-term debt 1,221,607 1,072,597 - - 1,221,607 1,072,597 Sanitary sewer - - 3,590,043 2,990,283 3,590,043 2,990,283 Storm sewer - - 579,610 577,812 579,610 577,812 Signs & lighting - - 395,821 312,631 395,821 312,631 Parking - - 459,150 448,160 459,150 448,160 Total expenses 20,580,612 20,715,476 5,024,624 4,328,886 25,605,236 25,044,362 Change in net position before transfers 4,187,828 6,699,988 (322,705) (276,979) 3,865,123 6,423,009 Transfers -101,792 -(101,792)- - Change in net position 4,187,828 6,801,780 (322,705) (378,771) 3,865,123 6,423,009 Net position - beginning 89,411,757 82,609,977 14,164,261 14,543,032 103,576,018 97,153,009 Prior period restatement for implementation of GASB standard (17,257,924)-(1,613,962)-(18,871,886)- Net position - beginning, as restated 72,153,833 82,609,977 12,550,299 14,543,032 84,704,132 97,153,009 Net position - ending $ 76,341,661 $ 89,411,757 $ 12,227,594 $ 14,164,261 $ 88,569,255 $ 103,576,018 CITY OF STILLWATER, MINNESOTA Management’s Discussion and Analysis (Continued) December 31, 2018 18 Below are specific graphs that provide comparisons of the government activities’ direct progra m revenues with their expenses. Any shortfalls in direct revenues are primarily supported by property tax levy or general state aid. Expenses and Program Revenues – Governmental Activities $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 General government Public safety Public works Culture and recreation Economic development Interest on long-tem debt Expenses Revenues Revenues by Source – Governmental Activities Charges for services 20% Operating grants and contributions 4% Capital grants and contributions 10% Taxes 52% Tax increment 6% Lodging tax 1% Gain on disposal of capital assets 0%Franchise fees 2% Other 3% Unrestricted investment earnings 2% CITY OF STILLWATER, MINNESOTA Management’s Discussion and Analysis (Continued) December 31, 2018 19 Below are specific graphs that provide comparisons of the business-type activities direct program revenues with their expenses. Excess revenues are retained within each fund until such time that capital replacement is needed. Expenses and Program Revenues – Business-type Activities $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Sanitary sewer Storm sewer Signs & lighting Parking Expenses Revenues Revenues by Source – Business-type Activities Charges for services 99% Unrestricted investment earnings 1% CITY OF STILLWATER, MINNESOTA Management’s Discussion and Analysis (Continued) December 31, 2018 20 FINANCIAL ANALYSIS OF THE GOVERNMENT’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, unassigned 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 $40,474,228, an increase of $2,958,520. Of this total, $27,040,698 is restricted due to external limitations on its use, such as debt covenants, legal restrictions or intention of grantors, donors or trustees. A total of $250,964 is considered nonspendable because it has been used for prepaid items. A total of $4,574,745 is committed meaning that the City Council established, by resolution, that the fund balance of certain funds will be used for a specific purpose. In addition, a total of $4,937,085 has been assigned meaning that management has delegated this portion to compensated absences. Finally, the remaining $3,670,736 is unassigned and can be used for any lawful purpose. The general fund is the primary operating fund of the City of Stillwater. At the end of the current fiscal year, unassigned fund balance of the general fund was $3,670,736, while the total fund balance was $5,335,109. As a measure of the general fund’s liquidity, it may be useful to compare unassigne d fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 33% of total general fund expenditures, while total fund balance represents 49% of that same amount. The fund balance of the City of Stillwater’s general fund did increase during the current fiscal year by $382,832 due primarily to a spending less than originally budget ed. The general fund’s revenues were more than its budget by $352,755. The largest variances were was in licenses and permits which was over budget by $386,445 and charges for services which was over budget by $151,980. These two items helped to offset franchise taxes being under budget by $114,279. The St. Croix Valley Recreation Center fund has a total fund balance of $3,647,424. Of this total, $5,766 is considered nonspendable and is being used for prepaid items and the remaining $3,641,658 is committed, by resolution, but available specifically for operations of the St Croix Valley Recreation Center. The fund balance increased by $389,801 due primarily to an increase in revenues from increased demand. The Library fund has total fund balance of $197,284. Of this total, $35,624 is considered nonspendable and is being used for prepaid items and $161,660 is considered committed, by resolution, and to be used specifically for Library operations and compensated absences. The fund balance increased by $66,827 due primarily to additional donations received during 2018. The Parks fund has a total fund balance of $597,478. Of this total, $6,421 is considered nonspendable and being used for prepaid items and $591,057 is considered committed, by resolution, and to be used specifically for Park operations and compensated absences. The fund balance increased by $56,340 due to revenues exceeding current expenditures and received $48,185 in reimbursements during 2018. The Debt Service fund has a total fund balance of $9,492,662, all of which is restricted for the retirement of related debt. The net increase of $523,134 is due primarily to the City paying its scheduled debt service payments as well as a transfer in of $1,132,213 from other funds. CITY OF STILLWATER, MINNESOTA Management’s Discussion and Analysis (Continued) December 31, 2018 21 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS (CONTINUED): The Capital Projects fund has a total fund balance of $11,485,928, all of which is restricted or assigned for current and future capital projects. The net increase of $983,201 is primarily due to revenues and bond proceeds being more than the spend down on capital projects throughout the City with police and city hall improvements. The TIF District fund has a total fund balance of $8,282,072 all of which is restricted for TIF (Tax Increment Financing) related expenditures. The fund balance increased by $329,655 due to tax increment and other revenues exceeding the expenditures incurred in 2018 related to the TIF eligible projects (hotel, etc.). 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. The Sanitary Sewer fund has total net position of $4,697,183. This includes negative unrestricted net position in the amount of $1,151,080. Net position decreased by $412,298 due primarily to lift station repairs and an increase in rates for waste water treatment. Any resources available in this fund will be used for future sewer related capital projects. In addition there was a reduction of net position of $721,219 due to the adoption of GASB Statement N. 75. The Storm Sewer fund has total net position of $229,666, of which there is a deficit in unrestricted net position of $228,108. Net position increased by $78,373 before the restatement for implementation of GASB Statement No. 75 due primarily to increased expenditures related to wages increases, Browns Creek Watershed District work, additional trenching work, and an increase in minor repairs needed in 2018. There was also a budgeted increase in transfers out to the Capital Projects Fund for the completion of storm sewer related projects . The Signs and Lighting fund has a deficit in total net position of $167,289. This includes negative unrestricted net position in the amount of $271,318. The net position decreased by $4,809 in 2018 due primarily to increased utility costs during 2018. The Parking fund has total net position of $7,468,034, of which $592,042 is unrestricted. Net position increased by $16,029, before the adoption of GASB Statement No. 75. Any resources available in this fund will be used for future parking related capital projects. GENERAL FUND BUDGETARY HIGHLIGHTS: Budget Amendments: During the year there were no changes in appropriations between the origina l budget and the final budget. Budget to Actual: Revenues: In 2018, the General Fund exceeded the original budgeted revenue expectations by $352,755. Some of the variances from the original budget to actual are as follows: Property Taxes: The City’s largest revenue source had a negative budget to actual variance of $96,064; $7,198,935 or 98.7% of the budgeted amount was collected. Intergovernmental Revenue: The City’s second largest revenue source had a positive budget to actual variance of $63,011 which primarily was due to higher than expected police and fire state aid revenues. Charges for services: The City’s third largest funding source has a positive budget to actual variance of $151,980 due mainly to an increase in planning fees. Licenses and permits: The City’s next largest funding source in 2018 has a positive budget to actual variance of $386,445 due to the significant increase in building and development activity in 2018. Miscellaneous: This fund source had a negative budget to actual variance of $69,249 primarily due to refunds and reimbursements revenue being lower than expected. CITY OF STILLWATER, MINNESOTA Management’s Discussion and Analysis (Continued) December 31, 2018 22 GENERAL FUND BUDGETARY HIGHLIGHTS (Continued): Expenditures: In 2018, the General Fund’s actual expenditures were less than expected by $13,328. The largest budget savings related to public safety police expen diture related to related to time without budgeted officers hired and working and automotive fuel savings which offset the fire department being over budget. 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, 2018, amounts to $112,481,569 (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 3%. CITY OF STILLWATER’S CAPITAL ASSETS (Net of depreciation) Governmental activities Business-type activities Total 2018 2017 2018 2017 2018 2017 Land $ 13,080,838 $ 13,080,838 $ 402,620 $ 402,620 $ 13,483,458 $ 13,483,458 Buildings and improvements 27,865,122 28,984,196 5,452,166 5,528,270 33,317,288 34,512,466 Improvements other than buildings 3,497,262 3,218,862 1,683,323 1,554,957 5,180,585 4,773,819 Machinery and equipment 3,608,524 3,684,086 611,090 435,417 4,219,614 4,119,503 Vehicles 1,775,625 1,896,623 613,159 691,484 2,388,784 2,588,107 Infrastructure 37,511,775 37,501,618 4,459,431 4,673,165 41,971,206 42,174,783 Construction in process 11,856,365 7,182,565 64,269 109,691 11,920,634 7,292,256 Total $ 99,195,511 $ 95,548,788 $ 13,286,058 $ 13,395,604 $ 112,481,569 $ 108,944,392 Additional information regarding the City’s capital assets can be found on pages 54 and 55 of this report. Long-term debt. At the end of the current fiscal year, the City of Stillwater had total bonded debt outstanding of $37,680,000. Of this amount $25,425,000 comprises tax-supported debt, $6,150,000 is tax increment debt, and $6,105,000 is revenue-supported debt. Of the total debt, $31,890,000 is a direct obligation of the City and backed with a pledge of the full faith, credit and taxing power of the City. CITY OF STILLWATER’S OUTSTANDING DEBT General Obligation Bonds Governmental activities 2018 2017 General Obligation Bonds: General Government $ 25,425,000 $ 21,755,000 Revenue 315,000 465,000 Tax Increment 6,150,000 6,375,000 Revenue Bonds: Tax Increment 5,790,000 6,175,000 Total $ 37,680,000 $ 34,770,000 The City of Stillwater’s total bonded debt increased by $2,910,000 (8%) during the current fiscal year. This was the net result of the City issuing the $5,935,000 G.O. Capital Outlay Bonds and paying its scheduled debt service payments. Additional information regarding the City’s long-term debt can be found beginning on pages 56 through 58 of this report. CITY OF STILLWATER, MINNESOTA Management’s Discussion and Analysis (Continued) December 31, 2018 23 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 $43,748,424. Only $25,425,000 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 137 through 138 of this report. The City of Stillwater’s Aa2 bond rating was reaffirmed by Moody’s on August 16, 2018 for the City’s general obligation debt. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES: The City’s taxable market value decreased by 8.4% in 2018 with values for 2019 to increase by 6.8%. An increase in FTE’s to fulfill needs described in the strategic plan and the increase need in service areas. An increase in capital funds for the St. Croix Riverbank Stabilization project with the goal of completin g construction by December 2020. The State revenue forecasts appear to be able to allow the distribution of the City’s promised aid payments in 2019, therefore, the City included this aid disbursement in its 2019 budget. Interest rates that the City has been able to obtain on its investments have continued to be low in 2018. Continued lower investment rates are expected to continue for 2019. Increased health care costs continue to be a concern for 2019. The City’s appointed officials considered many facto rs when developing the 2019 budget and establishing the 2018 tax levy collectible in 2019 and the appropriate fees that will be charged by business -type activities. With the focus on sustainability and its adopted strategic plan, the 2019 budget was prepar ed with emphasis on ensuring current operational needs will be met as well as meeting long-term capital requirements. Through constant adherence to its fiscal policies the City is expected to address long -term financial demands without causing significant fluctuation in the City’s tax burden. All of these factors were considered when preparing the City of Stillwater’s 2019 fiscal year budget. REQUESTS FOR INFORMATION: This financial report is designed to provide a general overview of the City of Stillwate r’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 Stillw ater, 216 4th Street North, Stillwater, Minnesota, 55082. Basic Financial Statements CITY OF STILLWATER, MINNESOTA STATEMENT OF NET POSITION December 31, 2018 The notes to the financial statements are an integral part of this statement. 24 Component Primary Government Unit Governmental Business-type Activities Activities Total Water ASSETS Cash and pooled investments 38,473,930$ 1,506,839$ 39,980,769$ 2,346,842$ Cash and pooled investments -held in escrow 3,774,899 - 3,774,899 - Accrued interest receivable 67,167 3,412 70,579 4,876 Receivable (net of allowance for uncollectibles)5,186,638 650,275 5,836,913 362,976 Internal balances 527,565 (527,565) - - Due from other governments 262,905 1,521 264,426 - Due from component unit 9,261 - 9,261 - Due from primary government - - - 132,993 Prepaid items 250,964 162,453 413,417 24,923 Notes receivable 18,310 - 18,310 - Inventories - - - 46,717 Net pension asset 1,078,480 - 1,078,480 - Capital assets, nondepreciable 24,937,203 466,889 25,404,092 94,987 Capital assets (net of accumulated depreciation)74,258,308 12,819,169 87,077,477 11,078,383 Total assets 148,845,630 15,082,993 163,928,623 14,092,697 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding of bonds 170,004 - 170,004 - Deferred outflows - pensions 4,563,992 96,033 4,660,025 82,400 Deferred outflows - OPEB 845,695 79,089 924,784 66,452 Total deferred outflows of resources 5,579,691 175,122 5,754,813 148,852 LIABILITIES Accounts payable 699,790 121,552 821,342 54,352 Contracts payable 1,183,865 3,033 1,186,898 - Salaries payable 524,703 55,406 580,109 - Unearned revenue - - - 39,286 Due to other governments 456,553 1,965 458,518 - Due to component unit 92,281 40,712 132,993 - Due to primary government - - - 9,261 Deposits payable 247,460 - 247,460 - Accrued expenses - - - 25,254 Accrued interest payable 476,249 - 476,249 13,656 Noncurrent liabilities: Due within one year 4,529,707 98,504 4,628,211 191,043 Due in more than one year 36,763,519 147,486 36,911,005 1,115,130 Total OPEB liability - due in more than one year 20,828,204 1,947,854 22,776,058 1,246,920 Net pension liability 5,708,624 492,378 6,201,002 366,141 Total liabilities 71,510,955 2,908,890 74,419,845 3,061,043 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pensions 6,572,705 121,631 6,694,336 111,478 NET POSITION Net investment in capital assets 74,547,220 13,286,058 87,833,278 10,047,017 Restricted for: Debt service 9,047,845 - 9,047,845 - Capital projects 10,336,814 - 10,336,814 - TIF projects 8,411,500 - 8,411,500 - General government activities 28,623 - 28,623 - Culture and recreation activities 891,776 - 891,776 - Public works activities 229,266 - 229,266 - Public safety activities 90,572 - 90,572 - Fire relief pension 855,917 - 855,917 - Unexpended municipal construction aid 1,004,919 - 1,004,919 - Unrestricted (29,102,791) (1,058,464) (30,161,255) 1,022,011 Total net position 76,341,661$ 12,227,594$ 88,569,255$ 11,069,028$ CITY OF STILLWATER, MINNESOTA STATEMENT OF ACTIVITIES Year Ended December 31, 2018 The notes to the financial statements are an integral part of this statement. 25 Net (Expense) Revenue and Program Revenues Changes in Net Position Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary Government: Governmental Activities: General government 4,564,749$ 348,883$ 292,068$ -$ Public safety 6,390,804 1,591,519 652,532 - Public works 4,442,535 1,031,032 4,230 2,289,865 Culture and recreation 3,683,368 2,070,711 51,917 215,500 Economic development 277,549 - - 27,897 Debt Service 1,221,607 - - - Total governmental activities 20,580,612 5,042,145 1,000,747 2,533,262 Business-type Activities: Sanitary sewer 3,590,043 3,160,024 - - Storm sewer 579,610 603,410 - - Signs & lighting 395,821 390,720 - - Parking 459,150 464,423 - - Total business-type activities 5,024,624 4,618,577 - - Total primary government 25,605,236$ 9,660,722$ 1,000,747$ 2,533,262$ Component Unit: Water 1,750,947$ 1,817,548$ -$ -$ General revenues: Property taxes Tax increment Lodging tax Franchise taxes Grants and contributions not restricted for a specific purpose Unrestricted investment earnings (loss) Gain on sale of capital assets Transfers Total general revenues Change in net position Net position, January 1 Prior period restatement for change in accounting principle, see note 14 Net position, January 1, as restated Net position, December 31 26 Net (Expense) Revenue and Changes in Net Position Primary Government Component Governmental Business-type Unit Activities Activities Total Water (3,923,798)$ -$ (3,923,798)$ -$ (4,146,753) - (4,146,753)- (1,117,408) - (1,117,408)- (1,345,240) - (1,345,240)- (249,652) - (249,652)- (1,221,607) - (1,221,607)- (12,004,458) - (12,004,458)- - (430,019) (430,019) - - 23,800 23,800 - - (5,101) (5,101) - - 5,273 5,273 - - (406,047) (406,047) - (12,004,458) (406,047) (12,410,505) - - - - 66,601 12,821,075 45,400 12,866,475 - 1,512,869 - 1,512,869 - 237,665 - 237,665 - 351,721 - 351,721 - 747,981 - 747,981 - 496,595 37,942 534,537 9,726 24,380 - 24,380 - - - -- 16,192,286 83,342 16,275,628 9,726 4,187,828 (322,705) 3,865,123 76,327 89,411,757 14,164,261 103,576,018 12,225,080 (17,257,924) (1,613,962) (18,871,886) (1,232,379) 72,153,833 12,550,299 84,704,132 10,992,701 76,341,661$ 12,227,594$ 88,569,255$ 11,069,028$ CITY OF STILLWATER, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2018 The notes to the financial statements are an integral part of this statement. 27 St Croix Valley Recreation General Center Library ASSETS Cash and pooled investments 5,901,822$ 3,783,662$ 261,748$ Cash and pooled investments-held in escrow - - - Accrued interest receivable 6,140 7,831 523 Accounts receivable 19,633 - 1,105 Taxes receivable:- Delinquent 78,046 - - Due from county 62,554 - - Special assessments receivable:- Delinquent 6,683 - - Deferred 87,062 - - Due from county 900 - - Due from other governments - - - Due from component unit 9,261 - - Interfund receivable - - - Prepaid items 186,539 5,766 35,624 Note receivable - 18,310 - Total Assets 6,358,640$ 3,815,569$ 299,000$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 202,022$ 72,408$ 40,482$ Contracts payable 61,573 77,427 - Salaries payable 441,144 - 53,101 Due to other governments 24,101 - 8,133 Due to component unit - - - Deposits payable 196,180 - - Total Liabilities 925,020 149,835 101,716 Deferred Inflows of Resources: Unavailable revenue 98,511 18,310 - Fund Balances: Nonspendable 186,539 5,766 35,624 Restricted - - - Committed - 3,641,658 161,660 Assigned 1,477,834 - - Unassigned 3,670,736 - - Total Fund Balances 5,335,109 3,647,424 197,284 Total Liabilities, Deferred Inflows of Resources and Fund Balances 6,358,640$ 3,815,569$ 299,000$ 28 Other Total Debt Capital TIF Governmental Governmental Parks Service Projects Districts Funds Funds 607,613$ 5,687,209$ 12,461,082$ 8,290,615$ 1,480,179$ 38,473,930$ - 3,774,899 - - - 3,774,899 1,424 7,860 23,539 17,283 2,567 67,167 34,710 - 1,069,993 - 10,431 1,135,872 - 29,030 1,609 2,588 -111,273 - 22,695 23 27,620 -112,892 -2,401 13,098 - - 22,182 -- 3,595,452 126,840 - 3,809,354 --6,115 - - 7,015 -- 260,505 - 2,400 262,905 --- - - 9,261 -- 527,565 - - 527,565 6,421 - - - 16,614 250,964 - - - - - 18,310 650,168$ 9,524,094$ 17,958,981$ 8,464,946$ 1,512,191$ 48,583,589$ 6,645$ -$ 305,995$ 6,914$ 65,324$ 699,790$ 1,287 - 998,400 34,582 10,596 1,183,865 30,458 - -- - 524,703 - - 424,319 11,950 -468,503 - - 92,281 - - 92,281 14,300 - 36,980 - - 247,460 52,690 - 1,857,975 53,446 75,920 3,216,602 - 31,432 4,615,078 129,428 - 4,892,759 6,421 - - - 16,614 250,964 - 9,492,662 8,026,677 8,282,072 1,239,287 27,040,698 591,057 - - - 180,370 4,574,745 - - 3,459,251 - - 4,937,085 - - - - - 3,670,736 597,478 9,492,662 11,485,928 8,282,072 1,436,271 40,474,228 650,168$ 9,524,094$ 17,958,981$ 8,464,946$ 1,512,191$ 48,583,589$ CITY OF STILLWATER, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION December 31, 2018 The notes to the financial statements are an integral part of this statement. 29 Total fund balance - total governmental funds (page 28 )40,474,228$ Amounts reported for governmental activities in the statement of net position (page 24) 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 154,281,870 Accumulated depreciation (55,086,359) 99,195,511 Other long-term assets that are not available to pay for current-period expenditures and, therefore, are unavailable resources in the governmental funds. Delinquent property taxes and special assessments 133,455 Deferred special assessments 3,809,354 Accounts receivable 931,640 Notes receivable 18,310 4,892,759 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 (37,680,000) Compensated absences (1,477,834) OPEB obligation (including deferred in/outflows)(20,828,204) Net pension obligation (including deferred in/outflows)(7,717,337) Net pension asset 1,078,480 Accrued interest payable (476,249) Unamortized premium (1,289,697) Unamortized refunding 170,004 (68,220,837) Net position of governmental activities (page 24)76,341,661$ THIS PAGE IS INTENTIONALLY LEFT BLANK CITY OF STILLWATER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BAL ANCES GOVERNMENTAL FUNDS Year Ended December 31, 2018 The notes to the financial statements are an integral part of this statement. 30 St Croix Valley Recreation General Center Library Parks REVENUES Property taxes 7,198,935$ -$ 1,222,353$ 894,129$ Tax increment - - - - Lodging tax - - - - Franchise taxes 351,721 - - - Licenses and permits 980,201 - - 1,088 Special assessments 9,736 - - - Intergovernmental 1,424,999 - - - Charges for services 966,656 1,514,490 95,903 35,292 Fines and forfeits 225,310 - - - Investment income: Interest 37,294 48,840 2,784 8,857 Donations 150 - 47,110 8 Miscellaneous 129,714 281,706 10,532 48,185 Total revenues 11,324,716 1,845,036 1,378,682 987,559 EXPENDITURES Current: General government 3,888,544 - - - Public safety 5,619,297 - - - Public works 1,450,792 - - - Culture and recreation - 1,280,909 1,311,962 931,219 Economic development - -- - Capital Outlay - -9,411 - Debt Service: Principal - - - - Interest - - - - Bond issuance fees - - - - Professional services - - - - Total expenditures 10,958,633 1,280,909 1,321,373 931,219 Excess (deficiency) of revenues over expenditures 366,083 564,127 57,309 56,340 OTHER FINANCING SOURCES (USES) Transfers in - - 9,411 - Transfers (out)- (174,326) - - Issuance of debt - -- - Sale of property 16,749 - 107 - Premium on issued debt - - - - Total other financing sources (uses)16,749 (174,326) 9,518 - Net change in fund balances 382,832 389,801 66,827 56,340 Fund Balances-January 1 4,952,277 3,257,623 130,457 541,138 Fund Balances-December 31 5,335,109$ 3,647,424$ 197,284$ 597,478$ 31 Other Total Debt Capital TIF Governmental Governmental Service Projects Districts Funds Funds 3,437,359$ 2,468$ -$ 62,978$ 12,818,222$ - - 1,512,869 - 1,512,869 - - - 237,665 237,665 - - - - 351,721 - - - - 981,289 3,931 1,178,133 27,897 - 1,219,697 -814,646 -172,523 2,412,168 -491,014 -215,500 3,318,855 --- 8,084 233,394 90,914 168,196 113,611 26,099 496,595 - - - 101,188 148,456 5,093 141,930 45 46,002 663,207 3,537,297 2,796,387 1,654,422 870,039 24,394,138 - - - 411,731 4,300,275 - - - 63,358 5,682,655 - 2,169 -25,544 1,478,505 - - - 117,879 3,641,969 - - 322,146 -322,146 - 7,828,264 -13,466 7,851,141 3,025,000 85,000 - - 3,110,000 1,026,171 33,625 44,734 - 1,104,530 -79,153 - - 79,153 10,281 317 - - 10,598 4,061,452 8,028,528 366,880 631,978 27,580,972 (524,155) (5,232,141) 1,287,542 238,061 (3,186,834) 1,132,213 1,295,868 - - 2,437,492 (84,924) (1,201,500) (957,887) (18,855) (2,437,492) - 5,935,000 - - 5,935,000 --- 7,524 24,380 -185,974 - - 185,974 1,047,289 6,215,342 (957,887) (11,331) 6,145,354 523,134 983,201 329,655 226,730 2,958,520 8,969,528 10,502,727 7,952,417 1,209,541 37,515,708 9,492,662$ 11,485,928$ 8,282,072$ 1,436,271$ 40,474,228$ 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, 2018 The notes to the financial statements are an integral part of this statement. 32 Net change in fund balances - total governmental funds (page 31)2,958,520$ Amounts reported for governmental activities in the statement of activities (page 25) 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 7,776,841 Depreciation expense (4,130,118) 3,646,723 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. Unavailable property taxes 54,655 Unavailable special assessments 857,210 Unavailable intergovernmental revenues (211,057) Other (18,310) 682,498 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 position. 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 position. 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: Bond proceeds (5,935,000) Principal retirement on long-term debt 3,025,000 Bond premium (185,974) Change in accrued interest expense (20,946) Amortization of premium, refunding, and write-off of issuance costs 78,620 (3,038,300) 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. Compensated absences increase (130,970) Net OPEB Obligation 69,129 Net pension obligation (67,190) Net pension asset 67,418 (61,613) Change in net position of governmental activities (page 25)4,187,828$ CITY OF STILLWATER, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BAL ANCE BUDGET AND ACTUAL Year Ended December 31, 2018 The notes to the financial statements are an integral part of this statement. 33 Budgeted Variance with Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Property taxes 7,294,999$ 7,198,935$ (96,064)$ Franchise taxes 466,000 351,721 (114,279) Licenses and permits 593,756 980,201 386,445 Special assessments 16,500 9,736 (6,764) Intergovernmental 1,361,988 1,424,999 63,011 Charges for services 814,676 966,656 151,980 Fines and forfeits 199,929 225,310 25,381 Investment income: Interest 25,000 37,294 12,294 Miscellaneous 199,113 129,864 (69,249) Total revenues 10,971,961 11,324,716 352,755 EXPENDITURES General government Mayor and council 206,359 226,405 (20,046) Elections 33,106 30,927 2,179 MIS support services 368,758 364,424 4,334 Finance 452,201 449,537 2,664 Human Resources 178,358 173,455 4,903 Administration 603,637 628,135 (24,498) Legal/City attorney 314,828 257,491 57,337 Plant/City hall 164,643 149,090 15,553 Community development 464,742 470,456 (5,714) Unallocated 1,118,004 1,138,624 (20,620) Public safety Police 3,307,674 3,423,099 (115,425) Fire 1,857,600 1,735,077 122,523 Inspections 390,955 457,993 (67,038) Civil defense 9,666 3,128 6,538 Public works Engineering 373,428 384,563 (11,135) Streets 1,128,002 1,066,229 61,773 Total expenditures 10,971,961 10,958,633 13,328 Excess (deficiency) of revenues over expenditures - 366,083 366,083 OTHER FINANCING SOURCES (USES) Sale of property - 16,749 16,749 Net change in fund balance -$ 382,832 382,832$ Fund balance-January 1 4,952,277 Fund balance-December 31 5,335,109$ CITY OF STILLWATER, MINNESOTA ST CROIX VALLEY RECREATION CENTER FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BAL ANCE BUDGET AND ACTUAL Year Ended December 31, 2018 The notes to the financial statements are an integral part of this statement. 34 Budgeted Variance with Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Charges for services 1,215,000$ 1,514,490$ 299,490$ Investment income: Interest - 48,840 48,840 Miscellaneous 277,160 281,706 263,396 Total revenues 1,492,160 1,845,036 611,726 EXPENDITURES Current: Culture and recreation Recreation center ice arena 944,778 873,262 71,516 Recreation center fieldhouse 246,884 197,349 49,535 Lily Lake ice arena 209,069 210,298 (1,229) Total expenditures 1,400,731 1,280,909 119,822 Excess (deficiency) of revenues over expenditures 91,429 564,127 731,548 OTHER FINANCING SOURCES (USES) Transfers (out)(174,326) (174,326) - Total other financing sources (uses)(174,326) (174,326) - Net change in fund balance (82,897)$ 389,801 731,548$ Fund balance-January 1 3,257,623 Fund balance-December 31 3,647,424$ CITY OF STILLWATER, MINNESOTA LIBRARY FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BAL ANCE BUDGET AND ACTUAL Year Ended December 31, 2018 The notes to the financial statements are an integral part of this statement. 35 Variance with Budgeted Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Property Taxes 1,222,353$ 1,222,353$ -$ Charges for services 70,700 95,903 25,203 Investment income: Interest 1,000 2,784 1,784 Donations 4,500 47,110 42,610 Miscellaneous 9,300 10,532 1,232 Total revenues 1,307,853 1,378,682 70,829 EXPENDITURES Current: Culture and recreation Operations 1,070,729 1,040,870 29,859 Plant 233,262 280,503 (47,241) Total expenditures 1,303,991 1,321,373 (17,382) Excess of revenues over expenditures 3,862 57,309 53,447 OTHER FINANCING SOURCES Transfers in - 9,411 9,411 Net change in fund balance 3,862$ 66,827 62,858$ Fund balance-January 1 130,457 Fund balance-December 31 197,284$ CITY OF STILLWATER, MINNESOTA PARKS FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BAL ANCE BUDGET AND ACTUAL Year Ended December 31, 2018 The notes to the financial statements are an integral part of this statement. 36 Variance with Budgeted Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Property Taxes 894,129$ 894,129$ -$ Licenses and permits 1,100 1,088 (12) Charges for services 25,000 35,292 10,292 Investment income: Interest 3,000 8,857 5,857 Donations - 8 8 Miscellaneous - 48,185 48,185 Total revenues 923,229 987,559 64,330 EXPENDITURES Current: Culture and recreation 923,229 931,219 (7,990) Net change in fund balance -$ 56,340 56,340$ Fund balance-January 1 541,138 Fund balance-December 31 597,478$ THIS PAGE IS INTENTIONALLY LEFT BLANK CITY OF STILLWATER, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2018 The notes to the financial statements are an integral part of this statement. 37 Business-type Activities-Enterprise Funds Sanitary Storm Signs and Sewer Sewer Lighting Parking Totals ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS: Cash and cash equivalents -$ 613,093$ -$ 893,746$ 1,506,839$ Accrued interest receivable 7.00 1,610.00 44.00 1,751.00 3,412 Accounts receivable 512,544 80,497 56,372 862 650,275 Due from other governments 1,521 - - - 1,521 Prepaid items 157,497 2,915 973 1,068 162,453 Total current assets 671,569 698,115 57,389 897,427 2,324,500 CAPITAL ASSETS Land - - - 402,620 402,620 Building and other improvements - - - 6,064,365 6,064,365 Improvements other than building 979,389 - - 1,437,555 2,416,944 Machinery and equipment 491,130 432,638 48,562 344,980 1,317,310 Vehicles 887,289 159,687 77,376 31,851 1,156,203 Infrastructure 10,460,870 - - - 10,460,870 Construction in progress - - - 64,269 64,269 Less accumulated depreciation (6,970,415) (134,551) (21,909) (1,469,648) (8,596,523) Net Capital Assets 5,848,263 457,774 104,029 6,875,992 13,286,058 Total assets 6,519,832 1,155,889 161,418 7,773,419 15,610,558 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - pensions 42,914 32,989 10,199 9,931 96,033 Deferred outflows - OPEB 35,342 27,168 8,400 8,179 79,089 Total deferred outflows 78,256 60,157 18,599 18,110 175,122 Total assets and deferred outflows of resources 6,598,088 1,216,046 180,017 7,791,529 15,785,680 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION CURRENT LIABILITIES Accounts payable 93,888 416 18,388 8,860 121,552 Contracts payable 138 - - 2,895 3,033 Salaries payable 21,896 17,596 5,887 10,027 55,406 Interfund payable 507,937 - 19,628 - 527,565 Due to other governments - 1,965 - - 1,965 Due to component unit 40,712 - - - 40,712 Compensated absences payable 7,682 7,176 1,812 2,745 19,415 OPEB Liability due within one year 35,342 27,168 8,400 8,179 79,089 Total current liabilities 707,595 54,321 54,115 32,706 848,737 NONCURRENT LIABILITIES Compensated absences 48,510 52,017 21,108 25,851 147,486 OPEB liability due in more than one year 870,423 669,120 206,872 201,439 1,947,854 Net pension liability 220,025 169,140 52,293 50,920 492,378 Total noncurrent liabilities 1,138,958 890,277 280,273 278,210 2,587,718 Total liabilities 1,846,553 944,598 334,388 310,916 3,436,455 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pensions 54,352 41,782 12,918 12,579 121,631 NET POSITION Net investment in capital assets 5,848,263 457,774 104,029 6,875,992 13,286,058 Unrestricted (1,151,080) (228,108) (271,318) 592,042 (1,058,464) Total net position 4,697,183 229,666 (167,289) 7,468,034 12,227,594 Total liabilities, deferred inflows of resources, and net position 6,598,088$ 1,216,046$ 180,017$ 7,791,529$ 15,785,680$ Business-type Activities - Enterprise Funds CITY OF STILLWATER, MINNESOTA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS Year Ended December 31, 2018 The notes to the financial statements are an integral part of this statement. 38 Business-type Activities - Enterprise Funds Sanitary Storm Signs and Sewer Sewer Lighting Parking Totals OPERATING REVENUES Charges for services 2,287,781$ 602,117$ 390,320$ 459,864$ 3,740,082$ OPERATING EXPENSES Personnel services 390,936 284,158 84,865 119,183 879,142 Supplies 9,681 29,347 25,048 26,521 90,597 Other services and charges 2,852,407 218,865 254,693 114,552 3,440,517 Miscellaneous 13,349 5,395 18,684 28,377 65,805 Depreciation 323,670 41,845 12,531 170,517 548,563 Total operating expenses 3,590,043 579,610 395,821 459,150 5,024,624 Income (loss) from operations (1,302,262) 22,507 (5,501) 714 (1,284,542) NONOPERATING REVENUES Interest income 15,018 11,876 292 10,756 37,942 Other income 874,946 43,990 400 4,559 923,895 Total nonoperating revenues 889,964 55,866 692 15,315 961,837 Change in net position (412,298) 78,373 (4,809) 16,029 (322,705) NET POSITION Net position, January 1 5,830,700 705,715 8,931 7,618,915 14,164,261 Prior period restatement for implementation of GASB Standard 75 (see note 16)(721,219) (554,422) (171,411) (166,910) (1,613,962) Net position, January 1 - as restated 5,109,481 151,293 (162,480) 7,452,005 12,550,299 Net position, December 31 4,697,183$ 229,666$ (167,289)$ 7,468,034$ 12,227,594$ CITY OF STILLWATER, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended December 31, 2018 The notes to the financial statements are an integral part of this statement. 39 Business-type Activities - Enterprise Funds Sanitary Storm Signs and Sewer Sewer Lighting Parking Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 2,540,945$ 600,893$ 407,103$ 459,078$ 4,008,019$ Payments to suppliers (2,844,282) (269,921) (292,698) (164,727) (3,571,628) Payments to employees (367,976) (286,965) (88,113) (120,857) (863,911) Net cash from operating activities (671,313) 44,007 26,292 173,494 (427,520) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State aid subsidy 1,683 1,293 400 389 3,765 Net cash from noncapital financing activities 1,683 1,293 400 389 3,765 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (219,140) (174,450) (26,988) (18,439) (439,017) Proceeds from taxes, assessments, connections 873,263 42,697 - 4,170 920,130 Net cash from capital and related financing activities 654,123 (131,753) (26,988) (14,269) 481,113 CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments 15,507 12,379 296 10,627 38,809 Net cash from investing activities 15,507 12,379 296 10,627 38,809 Net increase (decrease) in cash and cash equivalents - (74,074) - 170,241 96,167 Cash and cash equivalents, January 1 - 687,167 - 723,505 1,410,672 Cash and cash equivalents, December 31 -$ 613,093$ -$ 893,746$ 1,506,839$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss)(1,302,262)$ 22,507$ (5,501)$ 714$ (1,284,542)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 323,670 41,845 12,531 170,517 548,563 (Increase) Decrease in Assets and Deferred Outflows: Accounts receivable 24 (1,224) (1,466) (786) (3,452) Due from other governments 369 206 - - 575 Prepaid items (4,598) 357 (20) (111) (4,372) Deferred outflows - pensions 17,214 15,112 4,643 5,263 42,232 Deferred outflows - OPEB (1,149) (883) (273) (266) (2,571) Increase (Decrease) in Liabilities and Deferred Inflows: Accounts and contracts payable 35,384 (18,217) 5,881 4,903 27,951 Salaries payable 2,943 2,483 1,070 2,417 8,913 Due to other governments - 1,340 (134) - 1,206 Due to other funds 253,140 - 18,249 - 271,389 Due to component unit 21,439 - -(69) 21,370 Compensated absences payable 1,712 (555) 2,209 1,422 4,788 Net OPEB obligation (10,602) (3,512) (6,259) (2,505) (22,878) Net pension liability (19,390) (22,387) (6,804) (9,577) (58,158) Deferred inflows - pensions 10,793 6,935 2,166 1,572 21,466 Total adjustments 630,949 21,500 31,793 172,780 857,022 Net cash from operating activities (671,313)$ 44,007$ 26,292$ 173,494$ (427,520)$ THIS PAGE IS INTENTIONALLY LEFT BLANK CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement December 31, 2018 40 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 acc ounting 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 s tatements 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 (Commission). This financial information is presented in a separate column to emphasize the Commission is legally separate from the City. The 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 Commission may be obtained by writing the Board of Water Commission, 204 North 3rd Street, Stillwater, Minnesota 55082. OTHER ORGANIZATION The Stillwater Fire Relief Association is organized as a nonprofit 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 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 41 issues its own set of financial statements. All funding is conducted in accordance 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 position and the statement of activities) display information about the primary gov ernment 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 th e 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 position, 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 position is reported in three parts: (a) net investment in capital assets; (b) restricted net position; and (c)unrestricted net position. 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 and proprietary—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. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 42 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 Special Revenue Fund This fund is used to account for the operation of the sports facility in Stillwater. Revenue sources for this fund are provided by the fees generated by the facility and are committed for operations. Library Special Revenue Fund This fund is used to account for the operations of the City’s library. This fund is primarily funded with committed general property taxes. Parks Special Revenue Fund The parks fund is used to account for the operations of the City’s parks. This fund is primarily funded with committed general property taxes. Debt Service Fund The debt service fund is used to account for the accumulation of resources that are restricted for 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 acquisit ion or construction of major capital facilities other than those financed by proprietary funds. TIF Districts Fund This fund is used to account for restricted 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 an d lighting system. Parking Fund The parking fund accounts for the operation of parking facilities located in downtown Stillwater. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 43 C.MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The government-wide, and proprietary fund financial statements are reported usi ng 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. 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 unavailable revenue on its governmental fund balance sheets. Unavailable revenues arise when a potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. Unearned revenue 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 unearned 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 o perations. 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. Component Unit The Commission 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 generally accepted accounting principles in the United Stated of America. 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, Downtown Beautification fund and Washington County Recycling Grant fund which are presented in the combining and individual fund section of the Comprehensive Annual Financial Report. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 44 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 budg et 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 d uring 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 fund s 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 position presentation. Investments are stated at their fair value as determined by quoted market prices, except for money market investments and participating interest-earning investment contracts that have a remaining maturity at time of purchase of one year or less which are recorded at amortized cost, provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors. Money market investments are short -term, highly liquid debt instruments including commercial paper, banker ’s acceptances, and U.S. Treasury and agency obligations. Investments in external investment pools that meet the criteria of GASB Statement No. 79 are valued at amortized costs. If an external investment pool does not meet the criteria established by this Statement, that pool should apply the provisions in paragraph 16 of Statement No. 31. 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. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 45 G.PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accou nting 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 discretely presented component unit are valued at cost (first-in, first-out method) and are recorded as an expense when consumed. I.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 propo sed 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 meeting 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 meeting. 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 by 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. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 46 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 fo r 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. 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 a s revenue for the current year. All remaining delinquent, deferred, and special deferred assessments receivable in governmental funding are completely offset by unavailable 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 noncurrent portion of interfund loans, if any, is reported as “advances to/from other funds.” Advances between funds are offset by nonspendable fund balance 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, streetlights, 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 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 47 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 position. 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. The City and Commission also adopted GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period and therefore no longer include interest as part of the cost of construction projects. Component Unit Utility plant, property, and equipment are recorded at cost, or in th e case of contributions, at acquisition 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. 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 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 amortized over the life of the bonds using the straight-line method. Bond issue costs, are considered a current year cost of issuing debt and fully expensed in the year incurred. 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 cost s are reported as debt service expenditures. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 48 O.FUND BALANCE In the fund financial statements, governmental funds report fund balances in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable – portions of fund balance related to prepaids, inventories, long -term receivables, and corpus on any permanent fund. Restricted – funds are constrained by external parties (statute, grantors, bond agreements, etc.). Committed – fund constraints are established and modified by a resolution approved by the City Council. Assigned – consists of internally imposed constraints. These constraints are established by the City Council and/or management. The City Council by adoption of a formal fund balance policy delegates the authority to assign fund balance to the City Administrator and Finance Director. Unassigned – is the residual classification for the General Fund and also reflects negative residual amounts in other funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, it is the City’s policy to use restricted first, then unrestricted fund balance. When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are available, it is the City’s policy to use committed first, then assigned, and finally unassigned amounts. The City formally adopted a fund balance policy for the General Fund. The policy establishes an unassigned fund balance range of 35% – 50% of the total operating expenditures. P.INTERFUND TRANSACTIONS Interfund service transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/expe nses 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 i n 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 position and statements of activities. Q.DEFERRED OUTFLOWS OF RESOURCES The City would report decrease in net position or fund balance, that relate to future periods as deferred outflows of resources in a separate section of its government -wide and proprietary funds statement of net position or governmental fund balance sheet. The City has three types of deferred outflows of resources for the government wide financial statements: (1) deferred charges on refunding of bonds; (3) OPEB related items; and, (2) pension related items. The deferred charges will be amortized over the remaining life of the applicable bonds. In addition, the City reports deferred outflows of resources related to pensions, see Note 6 and 7 for additional details. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 49 R.DEFERRED INFLOWS OF RESOURCES The City’s governmental activities and governmental fund financial statements report a separate section for deferred inflows of resources. This separate financial statement element reflects an increase in net position of fund balance that applies to a future period. The City will not recognize the related revenue until a future event occurs. The City has one type of item which occurs relating to revenue recognition: The deferred inflow of resources occurs because governmental fund revenues are not recognized until available (collected not later than 6 0 days after the end of the City’s year) under the modified accrual basis of accounting. In addition, the City reports deferred inflows of resources related to pensions, see Note 6 for additional details. S.PENSIONS For purposes of measuring the net pension (asset)/liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA’s fiscal year-end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For purposes of measuring the (asset)/liability, deferred outflows of resources and deferred inflows of resources, and expense associated with the City’s requirement to con tribute to the Stillwater Fire Department Relief Association Plan, information about the Plan’s fiduciary net position and additions to/deductions from the Stillwater Fire Department Relief Association Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. T.POSTEMPLOYMENT BENEFITS The City of Stillwater and its discretely presented component unit provide a single-employer defined benefit healthcare plan to eligible retirees and their spouses. The plan offers medical insurance benefit, the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense were measured actuarially in accordance with GASB Statement No. 75, based on entry age normal cost method. 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 position 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 do 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 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 50 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, 2018 in the amount of $553,655 were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes. Component Unit The Commission had deposits at December 31, 2018 in the amount of $1,508,612. As of December 31, 2018, the Commission’s deposits were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Min nesota 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, are 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 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. i) Any security which is an obligation of a school district with an original maturity not exceeding 13 months and rated in the highest category by a national bond rating services or enrolled in the credit enhancement program pursuant to section 126C.55. At December 31, 2018, the City’s investment balances were as follows: CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 51 Cash Investments Held by Trustee: Type Value United States Treasury Securities 3,774,899$ The investments held by the trustee invested in U.S. Treasury Securities and a mutual fund (which are rated AAA-mf) that invests in U.S. Treasury Securities. These investments are held by escrow agents in accordance with escrow agreements established with the sale of the $2,450,000 General Obligation Tax Increment Revenues Bonds, Series 2016B and $6,585,000 Tax Increment Refunding Bonds, Series 2016C. The escrow account balances as of December 31, 2018 are as follows: Escrow account balance: $2,450,000 General Obligation Tax Increment Refunding Bonds Series 2016B 3,475,155$ $6,585,000 Tax Increment Refunding Bonds, Series 2016C 299,744 Total 3,774,899$ The escrow account for the Series 2016B Bonds will be used to pay interest payments on the current bond issue and refund the “Refunded Bonds” (General Obligation Tax Increment Bonds, Series 2008B) on February 1, 2019. These funds are recorded in the City’s financial statements as a part of the debt service fund. The escrow account for the Series 2016C Bonds will be used to pay interest payments on the current bond issue and refund the (i) the February 1, 2017 through 2026 maturities of the City’s Tax Increment Revenue Bonds (The Lofts of Stillwater Project), Series 2006 dated July 20, 2006; (ii) the Taxable Increment Revenue Note, Series 2003 (Terra Springs Project) and (iii) the Taxable Tax Increment Note, Series 2004 (Terra Springs Project) These funds are also recorded in the City’s financial statements as a part of the debt service fund. Interest Rate Risk Interest rate risk is the risk that changes in interest rates that will adversely affect th e 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 five years and under no circumstance should any investment maturity extend beyond 10 years without prior City Council approval. As of December 31, 2018, the City had the following investments and maturities: Less Than 1 to 5 5 to 10 Type Value 1 Year Years Years Repurchase agreement 4,426,689$ 4,426,689$ -$ -$ Money market funds 9,779,088 9,779,088 - - US Treasuries - with Trustee 3,475,155 - 3,475,155 - Mutual Funds - with Trustee 299,744 299,744 - - Negotiable CDs 3,043,072 2,846,894 196,178 - US Treasury Note 6,966,874 6,966,874 US Agencies: Federal Farm Credit Banks 1,974,296 496,100 1,478,196 - Federal Home Loan Banks 2,574,813 - 2,574,813 - Federal National Mortgage Association 1,965,912 - 1,965,912 - Federal Home Loan Mortgage Corporation 8,696,370 499,455 8,196,915 - Total 43,202,013$ 25,314,844$ 17,887,169$ -$ CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 52 Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation t o 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, 2018, the investments, as rated by Standard & Poor’s, had the following ratings: Credit Type Quality Rating Amount Repurchase agreement Not Rated 4,426,689$ Money market funds AAA 9,779,088 Negotiable CDs Not Rated 3,043,072 US Treasure Note Not Rated 6,966,874 US Treasuries - with Trustee AAA 3,475,155 Mutual Funds - with Trustee AAA-mf 299,744 US Agencies: Federal Farm Credit Banks AA+1,974,296 Federal Home Loan Banks AA+2,574,813 Federal National Mortgage Association AA+1,965,912 Federal Home Loan Mortgage Corporation AA+8,696,370 Total 43,202,013$ 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, 2018, 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 Amount Percentage US Agencies: Federal Home Loan Banks 2,574,813$ 6.0% Federal Home Loan Mortgage Corporation 8,696,370 20.1% Custodial Risk For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, 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. Fair Value Measurements The City uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The City follows an accounting standard that defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and requires expanded disclosures about fair value measurements. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 53 Fair Value Measurements (Continued) In accordance with this standard, the City has categorized its investments, based on the priority of the inputs to the valuation technique, into a three -level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the combined statements of financial position are categorized based on the inputs to the valuation techniques as follows: Level 1 – Financial assets and liabilities are valued using inputs that are unadjusted quoted prices in active markets accessible at the measurement date of identical financial assets and liabilities. Level 2 – Financial assets and liabilities are valued based on quoted prices for similar ass ets, or inputs that are observable, either directly or indirectly for substantially the full term through corroboration with observable market data. Level 3 – Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants and would use in pricing the asset. Assets measured a fair value on a recurring basis: Level 1 Level 2 Level 3 Total U.S. Agencies Federal Farm Credit Banks -$ 1,974,296$ -$ 1,974,296$ Federal Home Loan Banks - 2,574,813 - 2,574,813 Federal National Mortgage Association - 1,965,912 - 1,965,912 Federal Home Loan Mortgage Corporation - 8,696,370 - 8,696,370 Repurchase Agreement 4,426,689 - - 4,426,689 Negotiable Certificates of Deposit - 3,043,072 - 3,043,072 US Treasury Note 6,966,874 - - 6,966,874 US Treasuries - with Trustee 3,475,155 - - 3,475,155 Mutual Funds - with Trustee 299,744 - - 299,744 15,168,462$ 18,254,463$ -$ 33,422,925$ Investments measured at amortized cost 9,779,088 Total Investments 43,202,013$ Investments measured at amortized cost as of December 31, 2018 include money market investments and participating interest-earning investments that have a remaining maturity at the time of purchase of one year or less. Components of Cash and Investments Total Investments 43,202,013$ Deposits 553,655 Total 43,755,668$ Governmental Activities 42,248,829$ Business-Type Activities 1,506,839 Total 43,755,668$ CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 54 NOTE 3 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2018 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated Land 13,080,838$ -$ -$ 13,080,838$ Construction in Process 7,182,565 6,683,255 2,009,455 11,856,365 Total capital assets, not being depreciated 20,263,403 6,683,255 2,009,455 24,937,203 Capital Assets, Being Depreciated: Buildings and Other Improvements 46,355,161 - - 46,355,161 Improvements Other Than Buildings 6,236,333 608,815 - 6,845,148 Machinery and Equipment 10,005,073 592,281 21,578 10,575,776 Vehicles 4,864,167 132,309 73,968 4,922,508 Infrastructure 58,941,974 1,769,636 65,536 60,646,074 Total Capital Assets, Being Depreciated 126,402,708 3,103,041 161,082 129,344,667 Accumulated Depreciation for: Buildings and Other Improvements 17,370,965 1,119,074 - 18,490,039 Improvements Other Than Buildings 3,017,471 330,415 - 3,347,886 Machinery and Equipment 6,320,987 667,843 21,578 6,967,252 Vehicles 2,967,544 253,307 73,968 3,146,883 Infrastructure 21,440,356 1,759,479 65,536 23,134,299 Total Accumulated Depreciation 51,117,323 4,130,118 161,082 55,086,359 Total Capital Assets, Being Depreciated, Net 75,285,385 (1,027,077) - 74,258,308 Governmental Activities Capital Assets, Net 95,548,788$ 5,656,178$ 2,009,455$ 99,195,511$ Business-Type Activities: Capital Assets, Not Being Depreciated Land 402,620$ -$ -$ 402,620$ Construction in Process 109,691 1,800 47,222 64,269 Total capital assets, not being depreciated 512,311 1,800 47,222 466,889 Capital Assets, Being Depreciated: Buildings and Other Improvements 6,064,365 - - 6,064,365 Improvements Other Than Buildings 2,179,064 237,880 - 2,416,944 Machinery and Equipment 1,070,750 246,560 - 1,317,310 Vehicles 1,226,521 - 70,318 1,156,203 Infrastructure 10,460,870 - - 10,460,870 Total Capital Assets, Being Depreciated 21,001,570 484,440 70,318 21,415,692 Accumulated Depreciation for: Buildings and Other Improvements 536,095 76,104 - 612,199 Improvements Other Than Buildings 627,200 106,421 - 733,621 Machinery and Equipment 632,240 73,980 - 706,220 Vehicles 535,037 78,324 70,317 543,044 Infrastructure 5,787,705 213,734 - 6,001,439 Total Accumulated Depreciation 8,118,277 548,563 70,317 8,596,523 Total Capital Assets, Being Depreciated, Net 12,883,293 (64,123) 1 12,819,169 Business-Type Capital Assets, Net 13,395,604$ (62,323)$ 47,223$ 13,286,058$ CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 55 Beginning Ending Balance Increases Decreases Balance Component Unit: Capital Assets, Not Being Depreciated Land Use Rights 94,987$ -$ -$ 94,987$ Total capital assets, not being depreciated 94,987 - - 94,987 Capital Assets, Being Depreciated: Equipment 642,879 6,400 - 649,279 Distribution System 19,085,342 - - 19,085,342 Total Capital Assets, Being Depreciated 19,728,221 6,400 - 19,734,621 Accumulated Depreciation for: Equipment 474,539 22,948 - 497,487 Distribution System 7,728,759 429,992 - 8,158,751 Total Accumulated Depreciation 8,203,298 452,940 - 8,656,238 Total Capital Assets, Being Depreciated, Net 11,524,923 (446,540) - 11,078,383 Component Unit Capital Assets, Net 11,619,910$ (446,540)$ -$ 11,173,370$ Depreciation expense was charged to governmental functions as follows: General government 269,063$ Public safety 557,644 Public works 2,028,138 Culture and Recreation 1,275,273 Total Depreciation Expense, Governmental Activities 4,130,118$ Depreciation expense was charged to business-type functions as follows: Sanitary sewer 323,670$ Storm sewer 41,845 Signs and lighting 12,531 Parking 170,517 Total Depreciation Expense, Business-Type Activities 548,563$ NOTE 4 LEASES OPERATING LEASE The City leases vehicles for the police and the fire department. The total cost for these leases were $40,059 for the year ended December 31, 2018. Future minimum lease payments at December 31, 2018 were as follows: Year Ending Governmental December 31,Activities 2019 20,161 2020 3,836 Total 23,997$ CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 56 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 primarily with general tax. 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, 2018 in the government-wide financial statements of the primary government was $1,221,607. Component Unit The Commission interest incurred and charged to expense was $29,639 during 2018. General obligation bonds currently outstanding are as follows: Issue Maturity Interest Original Payable Date Date Rate Issue 12/31/18 PRIMARY GOVERNMENT: Governmental Activities: G.O. Capital Outlay Bonds: $1,005,000 Refunding Bonds of 2009B 02/15/09 02/01/19 2.51%1,005,000$ 95,000$ $4,095,000 Refunding Bonds of 2009D 02/15/09 02/01/22 2.30%4,095,000 1,110,000 $6,355,000 Capital Outlay and Refunding Bonds of 2012A 04/01/12 02/01/26 1.85%6,355,000 2,865,000 $9,215,000 Bonds of 2014A 04/08/14 02/01/40 3.24%9,215,000 7,950,000 $6,400,000 Bonds of 2016A 04/14/16 02/01/24 1.27%6,505,000 4,445,000 $3,405,000 Bonds of 2017A 06/29/17 02/01/32 1.40% - 3.00%3,405,000 3,025,000 $5,935,000 Bonds of 2018A 08/28/18 02/01/39 3.00$ - 4.00%5,935,000 5,935,000 Total G.O. Capital Outlay Bonds 37,970,000 25,425,000 G.O. Revenue Bonds: $1,420,000 Refunding Bonds of 2009C 02/15/09 06/01/20 2.75%1,420,000 315,000 Total G.O. Revenue Bonds 4,115,000 315,000 G.O. Tax Increment Bonds: $5,300,000 Bonds of 2008B 07/01/08 02/01/30 4.23%5,300,000 3,700,000 $2,450,000 Refunding Bonds of 2016B 04/14/16 02/01/30 1.79%2,450,000 2,450,000 Total G.O. Tax Increment Bonds 7,750,000 6,150,000 Tax Increment Revenue Bonds: $6,585,000 Bonds of 2016C 07/28/16 02/01/30 3.21%6,585,000 5,790,000 Total Tax Increment Revenue Bonds 6,585,000 5,790,000 Total bonds (Primary Government)56,420,000$ 37,680,000$ COMPONENT UNIT: 2013A G.O. Revenue Bonds 07/01/13 02/01/29 2.00% - 3.50%1,425,000$ 1,095,000$ Total component unit general obligation bond 1,425,000 1,095,000 Total reporting entity general obligation bonds 57,845,000$ 38,775,000$ CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 57 Annual debt service requirements to maturity for general obligation debt are as follows: PRIMARY GOVERNMENT PRIMARY GOVERNMENT Governmental Activities Governmental Activities Years ending G.O. Capital Outlay Bonds G.O. Revenue Bonds G.O. Tax Increment Bonds December 31,Principal Interest Principal Interest Principal Interest 2019 2,580,000$ 622,523$ 155,000$ 8,313$ 240,000$ 212,739$ 2020 2,605,000 676,634 160,000 2,800 445,000 202,839 2021 2,500,000 609,191 - - 470,000 186,571 2022 2,285,000 538,565 - - 480,000 169,535 2023 2,075,000 475,716 - - 495,000 151,903 2024 - 2028 6,530,000 1,600,242 - - 2,770,000 470,296 2029 - 2033 3,255,000 920,765 - - 1,250,000 48,038 2034 - 2038 2,575,000 436,259 - - - - 2039 - 2040 1,020,000 38,396 - - - - Total 25,425,000$ 5,918,291$ 315,000$ 11,113$ 6,150,000$ 1,441,921$ PRIMARY GOVERNMENT COMPONENT UNIT Governmental Activities Years ending Tax Increment Revenue Bonds G.O. Revenue Bonds December 31,Principal Interest Principal Interest 2019 395,000$ 183,955$ 85,000$ 32,775$ 2020 400,000 176,450 90,000 31,075 2021 410,000 168,450 90,000 29,275 2022 420,000 156,150 95,000 26,575 2023 435,000 143,550 95,000 23,725 2024 - 2028 2,370,000 514,500 525,000 73,225 2029 - 2033 1,360,000 87,800 115,000 4,025 2034 - 2038 - - - - 2039 - 2040 - - - - Total 5,790,000$ 1,430,855$ 1,095,000$ 220,675$ G.O. Capital Outlay Bonds Series 2009B, $1,005,000 Refunding bonds issued February 15, 2009 with a final maturity date of February 1, 2019 at 2.51 percent interest were used to refinance the outstanding portions of the GO Capital Outlay bonds Series 1998B on February 1, 2010. Series 2009D, $4,095,000 Refunding bonds issued February 15, 2009 with a final maturity date of February 1, 2022 at 2.30 percent interest were used to refinance the outstanding portions of the GO Capital Outlay bonds Series 2002A on February 1, 2011. Series 2012A, $6,355,000 Capital Outlay and Refunding bonds issued April 1, 2012 with a final maturity date of February 1, 2026 at 1.85 percent inter est were used to refinance the outstanding portions of the GO Capital Outlay Bonds Series 2004A and 2006A on February 1, 2014 and February 1, 2016, respectively. In addition it was used to provide funding for various capital projects throughout the City. Series 2014A, $9,215,000 Capital Outlay bonds issued April 8, 2014 with a final maturity date of February 2, 2040 at 3.24 percent interest were used to finance various capital equipment purchases and construct a new fire station. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 58 Series 2016A, $6,400,000 Capital Outlay bonds issued April 14, 2016 with a final maturity date of February 1, 2024 at 1.27 percent interest were used to refinance the outstanding portions of the GO Capital Outlay Bonds Series 2005B on February 1, 2017. Series 2017A, $3,405,000 Capital Outlay bonds issued June 29, 2017 with a final maturity date of February 1, 2032 with interest rates varying between 1.40 and 3.00 percent were used provide funding for the renovation and remodeling of the police station, street improvements and public works security improvements. Series 2018A, $5,935,000 Capital Outlay bonds issued August 28, 2018 with a final maturity date of February 1, 20139 at varying interest rates between 3.00 and 4.00 percent were used to provide funding for various street improvement projects and the addition to the St. Croix Valley Recreational Center. G.O. Revenue Bonds Series 2009C $1,420,000 G.O. Refunding Revenue Bonds issued February 15, 2019 with a final maturity date of June 1, 2020 at 2.75 percent interest were used to refunding the outstanding portions of the GO Sports Facilities Revenue Bonds, Series 2000D on June 1, 2009. G.O. Tax Increment Bonds Series 2008B, $5,300,000 GO Tax Increment Bonds issued July 1, 2018 with a final maturity date of February 1, 2030 at 4.23% were used to provide funding for the construction of a municipal parking ramp. Series 2016B, $2,450,000 GO Tax Increment Refunding Bonds issued April 14, 2016 with a final maturity date of February 1, 2030 at an interest rate of 1.79 percent were used to refinance the outstanding portion of the GO Tax Increment Bonds, Series 2008B on February 1, 2019. Tax Increment Revenue Bonds Series 2016C Tax Increment Revenue Bonds issued July 28, 2016 with a final maturity date of February 1, 2013 at 3.21 percent interest were used to refinance the outstanding portions of the Tax Increment Revenue Bonds Series 2006 and Taxable Tax Increment Revenue Note on February 1, 2017 Component Unit Series 2016C, $6,585,000 GO Revenue bonds issued July 1, 2013 with a final maturi ty date of February 1, 2029 at varying interest rates of 2.00 and 3.50 percent were issued to provide funding for water system improvements and to provide funding for the AMR upgrades. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 59 CHANGE IN LONG-TERM LIABILITIES The following is a schedule of chang es in the City’s long-term liabilities for the year ended December 31, 2018: Payable Payable Due Within 12/31/2017 Additions Retirements 12/31/2018 One Year PRIMARY GOVERNMENT: Governmental activities Bonds payable: G.O. Capital Outlay Bonds 21,755,000$ 5,935,000$ 2,265,000$ 25,425,000$ 2,580,000$ G.O. Revenue Bonds 465,000 - 150,000 315,000 155,000 G.O. Tax Increment Bonds 6,375,000 - 225,000 6,150,000 240,000 Tax Increment Revenue Bonds 6,175,000 - 385,000 5,790,000 395,000 Unamortized premium 1,208,622 185,974 104,899 1,289,697 - Total bonds payable 35,978,622 6,120,974 3,129,899 38,969,697 3,370,000 Compensated absences 1,346,864 788,352 657,382 1,477,834 314,012 Governmental activities Long-term liabilities 37,325,486 6,909,326 3,787,281 40,447,531 3,684,012 Business-type activities Compensated absences 162,113 67,785 62,997 166,901 19,415 Total long-term liabilities - primary government:37,487,599$ 6,977,111$ 3,850,278$ 40,614,432$ 3,703,427$ COMPONENT UNIT: Bonds payable 1,180,000$ -$ 85,000$ 1,095,000$ 85,000$ Compensated absences 126,813 31,798 45,243 113,368 39,591 Unamortized premium 34,489 - 3,136 31,353 - Total long-term liabilities - component unit 1,341,302 31,798 133,379 1,239,721 124,591 Total long-term liabilities 38,828,901$ 7,008,909$ 3,983,657$ 41,854,153$ 3,828,018$ For the governmental activities, compensated absences are generally liquidated by the General Fund. The portion of noncurrent liabilities broken out as due within one year on the Statement of Net Position includes the current amount of the total OPEB liability in the amount of $924,784. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 60 NOTE 6 PENSION PLANS A.DEFINED BENEFIT PENSION PLANS – STATE-WIDE Plan Description The City of Stillwater participates in the following cost -sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined-benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined-benefit pension plans are tax- qualified plans under Section 401 (a) of the Internal Revenue Code. 1.General Employees Retirement Plan All full-time and certain part-time employees of the City and Commission are covered by the General Employees Plan. General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. Component Unit All full-time and certain part-time employees of the Commission are covered by the General Employees Retirement Plan. 2.Public Employees Police and Fire Fund The Police and Fire Fund, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the Police and Fire Fund also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in ef fect at the time they last terminated their public service. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 61 General Employees Plan Benefits General Employees Plan benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at te rmination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2 percent of average salary for each of the first 10 years of service and 1.7 percent of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7 percent of average salary for all years of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan. General Employees Plan benefit recipients receive a future annual 1.0 percent increase. If the General Employees Plan is at least 90 percent funded for two consecutive years, the benefit increase will revert to 2.5 percent . If, after reverting to a 2.5 percent benefit increase, the funding ratio declines to less than 80 p ercent for one year or less than 85 percent for two consecutive years, the benefit increase will decrease to 1.0 percent . A benefit recipient who has been receiving a benefit for at least 12 full months as of June 30, will receive a full increase. Members receiving benefits for at least one month but less than 12 full months as of June 30, will receive a pro rata increase. 1.Police and Fire Plan Benefits Benefits for Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50 percent after five years up to 100 percent after ten years of credited service. Benefits for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from 50 percent after ten years up to 100 perce nt after twenty years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90. Benefit increases are provided to benefit recipients each January. Police and Fire Plan benefit recipients receive a future annual 1.0 percent increase. The annual adjustment will equal 2.5 percent any time the plan exceeds a 90 percent funded ratio for two consecutive years . If the adjustment is increased to 2.5 percent and the funded ratio falls below 80 percent for one year or 85 percent for two consecutive years, the post -retirement benefit increase will be lowered to one percent. A benefit recipient who has been receiving a benefit for at least 12 full months as of June 30 will receive a full increase. Members receiving benefits for at least one month but less than 12 full months as of June 30 will receive a pro rata increase. For retirements after May 31, 2014, the first increase will be delayed two years. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 62 Contributions Minnesota Statutes Chapter 353 sets the rates for employer and emplo yee contributions. Contribution rates can only be modified by the state legislature. 1.General Employees Fund Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2018 and the City was required to contribute 7.50 percent for Coordinated Plan members. The City’s contributions to the General Employees Fund for the year ended December 31, 2018, were $309,564. The City’s contributions were equal to the required contributions as set by state statute. Component Unit The Commission’s contributions to the General Employees Fund for the year ended December 31, 2018, were $30,084. The Component Unit contributions were equal to the required contributions as set by state statute. 2.Police and Fire Contributions Plan members were required to contribute 10.8 percent of their annual covered salary and the City was required to contribute 16.20 percent of pay for members in fiscal year 2018 . The City’s contributions to the Police and Fire Fund for the year ended December 31 , 2018, were $447,588. The City’s contributions were equal to the required contributions as set by state statute. Pension Costs 1.General Employees Fund Pension Costs At December 31, 2018, the City reported a liability of $3,406,220 for its proportionate share of the General Employees Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million to the fund in 2018. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $111,705. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2017 through June 30, 2018, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2018, the City’s proportionate share was 0.0614 percent which was an increase of 0.0016 percent from its proportionate share measured as of June 30, 2017. For the year ended December 31, 2018, the City of Stillwater recognized pension expense of $353,082 for its proportionate share of the General Em ployees Plan’s pension expense. In addition, the City of Stillwater recognized an additional $9,824 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 63 Component Unit At December 31, 2018, the Commission reported a liability of $366,141 for its proportionate share of the General Employees Fund’s net pension liability. The Commission’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million to the fund in 2018. The State of Minnesota is considered a non -employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the Commission totaled $12,157. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Commission’s proportionate share of the net pension liability was based on the Commission’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2017 through June 30, 2018, relative to the total employer contributions received from all of PERA’s participating employers . At June 30, 2018, the Commission’s proportionate share was 0.0066 percent which was an increase/ of 0.005 percent from its proportionate share measured as of June 30, 2017. For the year ended December 31, 2018, the Commission recognized pension expense of $26,971 for its proportionate share of the General Em ployees Plan’s pension expense. In addition, the Commission recognized an additional $2,835 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. City Commission Proportionate share of the net pension liability 3,406,220$ 366,141$ State of Minnesota's proportionate share of the net pension liability associated with the entity 111,705 12,157 Total 3,517,925$ 378,298$ CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 64 At December 31, 2018, the reported proportionate share of the General Employees Plan’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: PRIMARY GOVERNMENT COMPONENT UNIT Description Deferred Outflows of Resources Deferred Inflows of Resources Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience 90,157$ 99,345$ 9,691$ 10,679$ Changes in Actuarial Assumptions 325,380 382,725 34,976 41,140 Net Difference Between Projected and Actual Earnings on Pension Plan Investments - 348,062 - 37,414 Changes in Proportion and Differences Between City Contributions and Proportionate Share of Contributions 85,861 11,296 22,962 22,245 City Contributions Subsequent to the Measurement Date 162,950 - 14,771 - Total 664,348$ 841,428$ 82,400$ 111,478$ $162,950 reported as deferred outflows of resources related to pensions resulting from City of Stillwater contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2019. Component Unit $14,771 reported as deferred outflows of resources related to pensions resulting from Commission contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in th e year ended December 31, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: PRIMARY COMPONENT GOVERNMENT UNIT Year Ending December 31, Pension Expenses Amount Pension Expenses Amount 2019 148,342$ 7,882$ 2020 (165,385) (22,034) 2021 (251,893) (22,055) 2022 (71,094) (7,642) 2023 - - Thereafter - - CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 65 2.Police and Fire Pension Costs At December 31, 2018, the City reported a liability of $2,794,782 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2017 through June 30, 2018, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2018, the City’s proportionate share was 0.2622 percent which was an increase/ of 0.0072 percent from its proportionate share measured as of June 30, 2017. The City also recognized $23,598 for the year ended December 31, 2018, as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on- behalf contributions to the Police and Fire Fund. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the Police and Fire Fund each year, starting in fiscal year 2014, until the plan is 90 percent funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later. For the year ended December 31, 2018, the City recognized pension expense of $289,979 for its proportionate share of the Police and Fire Plan’s pension expense. At December 31, 2018, the City reported its proportionate share of the Police and Fire Fund’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Description Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience 112,645$ 685,631$ Changes in Actuarial Assumptions 3,474,609 4,114,285 Net Difference Between Projected and Actual Earnings on Pension Plan Investments - 585,375 Changes in Proportion and Differences Between City Contributions and Proportionate Share of Contributions 147,971 234,949 City Contributions Subsequent to the Measurement Date 250,347 - Total 3,985,572$ 5,620,240$ $250,347 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date but before the end of the employer’will be recognized as a reduction of the net pension liability in the year ended December 31, 2019. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 66 Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: PRIMARY GOVERNMENT Year Ending December 31, Pension Expenses Amount 2019 (92,620)$ 2020 (222,389) 2021 (428,090) 2022 (1,154,438) 2023 12,522 Thereafter - 3.Total PERA Pension Costs The primary government of the City recognized total pension expense of $676,483 for both the General Employees and Police and Fire Fund plans. This includes $362,906 for the General Employees Fund and $313,577 for the Police and Fire Fund. Additionally the Commission recognized total pension expense of $29,806 for it proportionate share of the General Employees Fund’s pension expense. Actuarial Assumptions The total pension liability in the June 30, 2018, actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as appropriate, with slight adjustments to fit PERA’s experience . Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for the General Employees Plan, 1.0 percent per year for the Police and Fire Plan, and 2.0 percent per year for the Correctional Plan. Actuarial assumptions used in the June 30, 2018 valuation were based on the results of actuarial experience studies. The most recent six -year experience study in the General Employees Plan was completed in 2015. The most recent four-year experience study for Police and Fire Plan was completed in 2016. Economic assumptions were updated in 2017 based on a review of inflation and investment return assumptions. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 67 The following changes in actuarial assumptions occurred in 2018: General Employees Plan Changes in Actuarial Assumptions: The morality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. Changes in Plan Provisions: The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer provisions were repealed. Post-retirement benefit increases were changed from 1.0 percent per year with a provision to increase to 2.5 percent upon attainment of 90 percent funding ratio to 50 percent of the Social Security Cost of Living Adjustment, not less than 1.0 percent and not more than 1.5 percent, beginning January 1, 2019. For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches Normal Retirement Age. Does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. Police and Fire Fund Changes in Actuarial Assumptions: The mortality projection scale was changed from MP-2016 to MP-2017. Changes in Plan Provisions: Post-retirement benefit increases were changed to 1.0 percent for all years, with no trigger. An end date of July 1, 2048 was added to the existing $9.0 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member contributions were changed from 10.8 percent to 11.3 percent of pay, effective January 1, 2019 and 11.8 percent of pay, effective January 1, 2020. Employer contributions were changed from 16.20 percent to 16.95 percen t of pay, effective January 1, 2019 and 17.70 percent of pay, effective January 1, 2020. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effec tive January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 68 The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long -term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Long-Term Expected Real Rate of Return Domestic Equity 36%5.10% International Equity 17%5.30% Bonds 20%0.75% Alternative Assets 25%5.90% Cash 2%0.00% Totals 100% Discount Rate The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions of the General Employees Fund and the Police and Fire Fund was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determ ine the total pension liability. Pension Liability Sensitivity The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: Primary Government Description 1% Decrease in Discount Rate Current Discount Rate 1% Increase in Discount Rate GERF Discount Rate 6.50%7.50%8.50% City's Proportionate Share of the GERF Net Pension Liability 5,535,544$ 3,406,220$ 1,648,524$ PEPFF Discount Rate 6.50%7.50%8.50% City's Proportionate Share of the PEPFF Net Pension Liability 5,992,188 2,794,782 150,660 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 69 Component Unit Description 1% Decrease in Discount Rate Current Discount Rate 1% Increase in Discount Rate GERF Discount Rate 6.50%7.50%8.50% Commission's Proportionate Share of the GERF Net Pension Liability 595,026$ 366,141$ 177,203$ Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. B.DEFINED CONTRIBUTION PLAN Five council members of the City of Stillwater are covered b y 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 contributes 5 % 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 th e plan, PERA receives 2% 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 2018 were: Contribution Amount Percentage of Covered Payroll Required Employee Employer Employee Employer Rate 1,170$ 1,170$ 5.0%5.0%5.0% CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 70 C.STILLWATER FIRE RELIEF ASSOCIATION Plan Description Firefighters of the City of Stillwater are members of the Stillwater Fire Department Relief Association. The Association is the administrator of the single-employer defined benefit pension plan available to firefighters. The plan is administered pursuant to Minnesota Statutes Chapter 69, Chapter 424A, and the Association’s by-laws. As of December 31, 2016, membership includes 32 active participants and 3 terminated employees entitled to benefit but not yet receiving them. The plan issues a stand-alone financial statement. Benefits Provided Authority for payment of pension benefits is established in Minnesota Statutes §69.77 and may be amended only by the Minnesota State Legislature. Each member who is at least 50 years of age, has retired from the Fire Department, has served at least 20 years of active service with such department before retirement shall be entitled to a lump s um service pension in the amount of $7,250 for each year of active Fire Department service but not exceeding the maximum amount per year of service allowed by law for the minimum average amount of available financing per firefighter as prescribed by law. Pursuant to Minnesota Statutes §424A.02, Subds. 2 and 4, members who retire with 10 years of service and have reached the age of 50 years are eligible for a retirement benefit. Members who retire before full retirement age and years of service requirements are eligible for a reduced benefit, based on the vesting schedule as set forth in Minnesota Statutes §424A.02, Subd. 2(c). During the time a member is on early vested pension, they will not be eligible for disability benefits. Disability and death benefits provisions of the Association’s plan are that the member or member’s beneficiaries shall be paid an amount equivalent to the accrued retirement liability at the time of disability or death. Minnesota Statutes Section 424A.10 provides for the payment of a supplemental benefit equal to 10% of a regular lump sum distribution up to a maximum of $1,000. The supplemental benefit is in lieu of state income tax exclusion for lump sum distributions and will no longer be available if state tax law is modified to exclude lump sum distributions from state income tax. The Association qualifies for these benefits. Contributions Minnesota Statues Chapter 69.772 specifies minimum support rates required on an annual basis. The minimum support rates from the municipalit y and from state aid are determined as the amount required to meet the normal cost plus amortizing any existing prior service costs over a 10-year period. The significant actuarial assumptions used to compute the municipal support are the same as those used to compute the accrued pension liability. The association is comprised of volunteers; therefore, there are no payroll expenditures (i.e. there are no covered payroll percentage calculations). CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 71 The minimum contribution from the City of Stillwater and state aid is determined as follows: Normal Cost + Amortization Payment on Unfunded Accrued Liability Prior to Any Change + Amortization Contribution on Unfunded Accrued Liability Attributed to Any Change + Administrative Expenses - Anticipated State Aid - Projected Investment Earnings = Total Contribution Required The Plan is funded in part by fire state aid and, if necessary, City contributions. The State of Minnesota distributed to the City $164,974 in fire state aid paid by the City to the Relief Association for the year ended December 31, 2017. Required employer contributions are calculated annually based on statutory provisions. The City’s statutorily-required contribution to the plan for the year ended December 31, 2017 was $0. Pension Costs At December 31, 2018, the City reported an asset of $1,078,480 for the Association’s net pension asset. The net pension asset was measured as of December 31, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. As a result of its requirement to contribute to the Relief Association, the City recognized a n increase in public safety expense of $178,645 for the year ended December 31, 2018. At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of resources from the following sources: Description Differences Between Expected and Actual Economic Experience -$ 86,794$ Changes in Actuarial Assumptions 10,105 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments - 145,874 City Contributions Subsequent to the Measurement Date - - Total 10,105$ 232,668$ Deferred Inflows of Resources Deferred Outflows of Resources The City was not statutorily required to make contributions to the Association subsequent to the measurement date, so no related deferred outflows of resources were reported. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 72 Other amounts reported as deferred outflows and inflows of resources related to the Association’s pension will be recognized in pension expense as follo ws: Year Ended December 31, Pension Expense Amount 2019 (34,915)$ 2020 (34,105) 2021 (78,176) 2022 (75,367) 2023 - Thereafter - Actuarial Assumptions The actuarial total pension liability was determined as of December 31, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: Valuation Date 01/01/17 Actuarial Cost Method Entry Age Normal Amortization Method Level Dollar Closed Actuarial Assumptions: Discount Rate 5.25% Investment Rate of Return 5.25% 20-Year Municipal Bond Yield 3.50% Salary Increases 2.50% Age of Service Retirement 50 The long-term expected rate of return on pension plan investm ents was determined using a building-block method in which best estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These asset class estimates are combined to produce the portfolio long-term expected rate of return by weighting the expected future real rates of return by weighting the expected future real rates of return by the current asset allocation percentage (or target allocation, if available) and by adding expected inflation. The best estimate of expected future real rates of return were developed by aggregating data from several published capital market assumption surveys and deriving a single best estimate based on the average survey values. These capital market assumptions reflect both historical market experience as well as diverse views regarding anticipated future returns. The expected inflation assumption was developed based on an analysis of historical experience blended with forward-looking expectations available in market data. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 73 Best estimates of geometric real and nominal rates of return for each major asset class included in the pension plan’s asset allocation as of the plans valuation date of December 31, 2016 are summarized as follows: Allocation at Long-Term December 31,Expected Expected Nominal Asset Class 2017 Portfolio Weight Rate of Return Equities 56.54%54.00%7.00% Fixed Income 34.98%37.00%3.50% Other 0.00%1.00%6.00% Cash Equivalents 8.48%8.00%2.00% Total Portfolio 100.00%5.25% Discount Rate The discount rate used to measure the total pension liability was 5.25%. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments were discounted by year using expected assets return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the municipal bond rate of return. The equivalent single rate is the discount rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Pension Liability Sensitivity The following presents the City of Stillwater’s proportionate share of the net pension liability of the Association, calculated using the discount rate of 5.25%, as well as what the Association’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower (4.25%) or one percentage point higher (6.25%) than the current rate: Selected 1% Decrease Discount Rate 1% Increase Net Pension Liability (Asset)(1,054,872)$ (1,078,480)$ (1,101,116)$ Discount Rate 4.25%5.25%6.25% CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 74 Plan’s Fiduciary Net Position Assets Cash 354,043$ Mutual Funds 2,361,625 Bonds and Notes 1,461,258 Total Assets 4,176,926 Net Position Restricted for Pension Benefits 4,176,926$ Revenues Fire State Aid 164,974$ State 10% Supplemental Reimbursement 1,000 Net Investment Income 478,512 Total Revenues 644,486 Expenses Pension Distributions 286,103 Trustee Fees 1,395 Professional Services 6,750 Total Expenses 294,248 Change in Net Position 350,238 Beginning Net Position 3,826,688 Ending Net Position 4,176,926$ Information about the changes in the Plan’s net pension liability (asset) is a follows: 2017 Total Pension Asset Service Cost 96,366$ Interest 145,369 Changes of Benefit Terms 327,188 Benefit Payments, Including Member Contribution Refunds (286,103) Net Change in Total Pension Liability 282,820 Total Pension Liability - Beginning 2,815,626 Total Pension Liability - Ending (a)3,098,446 Plan Fiduciary Net Position State Contributions 165,974 Net Investment Income 478,512 Benefit Payments (286,103) Administrative Expenses (8,145) Net Change in Fiduciary Net Position 350,238 Fiduciary Net Position - Beginning 3,826,688 Fiduciary Net Position - Ending (b)4,176,926 Association's Net Pension Liability/(Asset) - Ending (a) - (b)(1,078,480)$ CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 75 NOTE 7 POST EMPLOYMENT HEALTH CARE BENEFITS At December 31, 2018, the City and its discretely present component unit, the Commission, adopted Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions . A.PLAN DESCRIPTION The City and the Commission provide 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. Pursuant to the provisions of the plan, retirees are required to pay the total premium cost. Employees covered by benefit terms at December 31, 2018: City Commission Inactive plan members or beneficiaries currently receiving benefit payments 49 10 Inactive plan members entitld to but not yet receiving benefit payments - - Active plan members 95 6 Total 144 16 B.CONTRIBUTIONS AND FUNDING POLICY The City and the Commission fund their OPEB obligations on a pay as you go basis. For fiscal year 2018, the City contributed $894,727 to the plan. For fiscal year 2018, the Commission contributed $66,258 to the plan. C.TOTAL OPEB LIABILITY The City’s and Commissions’ total OPEB liability was meas ured as of January 1, 2018 and was determined by an actuarial valuation as of January 1, 2017 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 76 Actuarial Assumptions The total OPEB liability in the January 1, 2017 actuarial valuation was determined using the following actuarial assumptions, applied to all period included in the measurement, unless otherwise specified: Valuation date: Measurement date: Methods and assumptions used: Actuarial cost method Actuarial assets Amortization of deferred resource flows Discount rate 3.30% Inflation rate 2.50% Salary increases 3.00% Medical trend rate 6.25% in 2018, grading to 5% over 5 years Mortality January 1 2017 January 1, 2018 Entry age, level percentage of pay None Average of expected remaining services on a closed basis for differences between expected and actual experience and assumption chagnes RP-2014 adjusted to 2006 headcount weighted white collor mortality tables with MP-2016 generational improvement scale (with blue collar adjustment for police and fire personnel D.DISCOUNT RATE The City’s and Commission’s plan is not funded by a trust and therefor, the City and Commission use the 20-year municipal bond index rate to develop its long-term rate of return and discount rate. This rate was 3.30% in the current actuarial valuation, which was updated from the 3.50% used in the prior actuarial valuation. E.CHANGES IN THE TOTAL OPEN LIABILITY The details of the changes in the total OPEB liability were as follows for 2018: City Commission Balance at 12/31/17 23,765,362$ 1,318,402$ Changes for the year: Service cost 58,658 757 Interest 771,549 42,434 Benefit payments (894,727) (67,122) Net chages (64,520) (23,931) Balance at 12/31/18 23,700,842$ 1,294,471$ Increase (decrease) total OPEB liablity The following changes in assumptions occurred between the current and prior actuarial valuation: The discount rate used the 20-year municipal bond index as the plan is not funded. This assumed rate decreased from 3.50% to 3.30% CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 77 F.SENSITIVITY OF THE TOTAL OPEB LIABILITY Sensitivity of the total OPEB liability to changes in the discount rate and healthcare cost trend rates. The following presents the total OPEB liability of the City and Commission, as well as what the City's and Commission’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.30%) or 1-percentage-point higher (4.30%) than the current discount rate: 1% Decrease Discount Rate 1% Increase (2.30)%(3.30)%(4.30)% Total OPEB liability (asset) City 27,342,034$ 23,700,842$ 20,759,129$ Commission 1,442,199 1,294,471 1,169,333 Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presents the total OPEB liability of the City and Commission, as well as what the City's and Commission’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.25% decreasing to 4.00%) or 1-percentage-point higher (7.25% decreasing to 6.00%) than the current healthcare cost trend rates: Healthcare Cost 1% Decrease Trend Rates 1% Increase (5.25%(6.25%(7.25% Decreasing to Decreasing to Decreasing to 4.00%)5.00%)6.00%) Total OPEB liability (asset) City 20,661,761$ 23,700,842$ 27,397,809$ Commission 1,164,463 1,294,471 1,445,126 G.OPEB EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2018 the City and Commission recognized OPEB expense of $(64,520) and $62,092, respectively. At December 31, 2018, the City and Commission reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Contributions after the measurement date and before the reporting date 924,783$ -$ 66,452$ -$ City Commission A total of $924,784 and $66,452 for the City and Commission, respectively, reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ended December 31, 2019. There were other deferred outflows of resources or deferred inflows of resources as of December 31, 2018. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 78 NOTE 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY Deficit Net Position and Fund Balance On December 31, 2018, there were no funds that had a deficit net position or fund balance: Expenditures in Excess of Adopted Budget On December 31, 2018, the following funds had expenditures in excess of its adopted budget and were funded by greater than anticipated revenues and use of fund balance: Amount Library Fund 17,382$ Special Events Fund 473 Parks Fund 7,990 NOTE 9 FUND BALANCE At December 31, 2018, the City had various fund balances through legal restriction and City Council authorization. Major fund balance appropriations at December 31, 2018 are shown on the various balance sheets as segregations of the fund balance. The fund balances are as follows: Total Nonspendable Restricted Committed Assigned Unassigned General Fund Prepaid items 186,539$ 186,539$ -$ -$ -$ -$ Compensated absences 1,477,834 - - - 1,477,834 - Ongoing operations 3,670,736 - - - - 3,670,736 Total General Fund 5,335,109 186,539 - - 1,477,834 3,670,736 St Croix Valley Recreation Center Fund Prepaid items 5,766 5,766 - - - - Ongoing operations 3,641,658 - - 3,641,658 - - Total St Croix Valley Rec Fund 3,647,424 5,766 - 3,641,658 - - Library Fund Prepaid items 35,624 35,624 - - - - Ongoing operations 161,660 - - 161,660 - - Total Library Fund 197,284 35,624 - 161,660 - - Parks Fund Prepaid items 6,421 6,421 - - - - Ongoing operations 591,057 - - 591,057 - - Total Parks Fund 597,478 6,421 - 591,057 - - Debt Service Fund Debt Service 9,492,662 - 9,492,662 - - - Capital Projects Fund Capital asset acquisitions 3,215,878 - 3,215,878 - - - Capital construction 8,270,050 - 4,810,799 - 3,459,251 - Total Capital Projects Fund 11,485,928 - 8,026,677 - 3,459,251 - TIF Districts Fund Eligible TIF related projects 8,282,072 8,282,072 - - - CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 79 Fund balances (continued): Total Nonspendable Restricted Committed Assigned Unassigned Other Governmental Funds General government: Tourism promotion 22,406$ -$ 22,406$ -$ -$ -$ Miscellaneous 6,217 - 6,217 - - - Culture and recreation: Special events 28,243 - - 28,243 - - Library activities 164,984 - 164,984 - - - Trailhead (bicycle)16,804 16,804 Park equipment 8,062 8,062 Miscellaneous park activities 700,976 - 700,976 - - - Public works: Community beautification 33,008 - - 33,008 - - Lowell park improvements 119,119 - - 119,119 - - Recycling activities 223,316 - 223,316 - - - Miscellaneous 5,950 - 5,950 - - - Public safety 90,572 - 90,572 - - - Total Other Governmental Funds 1,436,271 16,614 1,239,287 180,370 - - Total Fund Balances 40,474,228$ 250,964$ 27,040,698$ 4,574,745$ 4,937,085$ 3,670,736$ NOTE 10 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, 2018. 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 i nsurance; of an immaterial amount; or, in the judgement of the City attorney, remotely recoverable by plaintiffs. NOTE 11 INTERFUND RECEIVABLES AND PAYABLES Individual fund receivable and payable balances at December 31, 2018 are as follows: Interfund Receivable Interfund Payable Amount Capital Projects Sanitary Sewer 507,937$ Capital Projects Signs and Lighting 19,628 Total 527,565$ Due from Primary Government Due to Component Unit Amount Board of Water Commission Debt Service Fund 92,281$ Board of Water Commission Sanitary Sewer Fund 40,712 Total 132,993$ Due from Component Unit Due to Primary Government Amount General Fund Board of Water Commission 9,261$ Total 9,261$ CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 80 The interfund balances (as shown on the statement of net position), between the component unit and the primary government reflect services provided by/from the City to/by the component unit. The interfund balances (as shown on the statement of net position), between t he funds of the primary government reflect balances setup to cover negative cash in the Sanitary Sewer Fund and Signs and Lighting Fund that had been incurred due to cost incurred related to capital projects. 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 were initiated to fund capital projects and fund operations. Transfers between individual major funds, and nonmajor governmental f unds in the aggregate fund types during the year ended December 31, 2018 were as follows: Transfers In Transfers Out Amount General Fund Park Dedication Fund 18,855$ General Fund Capital Projects Fund 1,192,089 Library Fund Capital Projects Fund 9,411 Debt Service Fund St. Croix Valley Rec Center 174,326 Debt Service Fund TIF District Fund 957,887 Capital Projects Fund Debt Service Fund 84,924 Total 2,437,492$ 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 r eserved 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 expecte d to be material to these financial statements. There have been no significant reductions in insurance coverage during 2017 and settlements have not exceeded insurance coverage during the current year and prior three years. The State of Minnesota mandates and regulated workers’ compensation insurance and the City of Stillwater also purchased this required coverage from the LMCIT. CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 81 Component Unit The 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 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 Curve Crest Scattered Scattered Jr High Anchobaypro Villa Sites Sites Development district #1 2 1 1 1 City tax increment district #6 8 9 10 11 County tax increment district #43 65 70 71 85 District type Redevelopment Housing Housing Redevelopment Redevelopment Statute authorization Chapert 472-A Chapter 469 Chapter 469 Chapter 469 Chapter 469 Year established 1986 2001 2002 2004 2014 District duration 25 years*25 years*25 years*25 years*25 years* Tax Capacity Current tax capacity 44,975$ 111,728$ 68,430$ 1,332,364$ 29,937$ Original tax capacity - (10,922) (1,845) (123,628) (28,833) Captured tax capacity 44,975 100,806 66,585 1,208,736 1,104 Fiscal disparity deduction - - - - - Retained by authority 44,975$ 100,806$ 66,585$ 1,208,736$ 1,104$ Retained as a % of current net tax capacity 100.0000%90.2245%97.3038%90.7212%3.6877% Taxes Total captured tax increment tax 47,046$ 110,139$ 72,748$ 1,267,441$ 1,155$ Less tax increment due to increase in tax rate - - - - - Tax increment district gross tax 47,046 110,139 72,748 1,267,441 1,155 Projected state auditor .36% admin fee (169) (397) (262) (4,563) (4) Projected net to district 46,877$ 109,742$ 72,486$ 1,262,878$ 1,151$ PAYGO to Developer -$ -$ -$ -$ 1,150,000$ Outstanding Debt Total bonds issued and outstanding at 12/31/17 -$ -$ -$ 11,940,000$ -$ Issuer administrative fee -$ -$ -$ -$ -$ Estimated Market Value* Total (aggregate basis):2,995,800$ 11,647,500$ 7,911,000$ 139,970,900$ 1,989,500$ * Per parcel basis, copy this link to Washington County: https://www.co.washington.mn.us/DocumentCenter/View/7859 CITY OF STILLWATER, MINNESOTA Notes to the Financial Statement (Continued) December 31, 2018 82 District name Curve Crest Scattered Scattered Jr High Anchobaypro Villa Sites Sites Development district #1 2 1 1 1 City tax increment district #6 8 9 10 11 County tax increment district #43 65 70 71 85 Collections Amount of tax increment collected in: 2018 46,877$ 109,742$ 72,486$ 1,282,000$ 1,151$ 2017 49,227 +97,915 71,064 1,207,292 856$ 2016 46,929 97,514 70,834 1,157,130 - 2015 54,538 93,097 79,206 1,143,415 213 2014 58,716 86,315 85,459 1,155,646 - 2013 60,403 85,930 87,872 1,162,947 - 2012 and prior 2,419,673 897,658 648,417 6,794,371 - Total amount collected 2,736,363$ 1,468,171$ 1,115,338$ 13,902,801$ 2,220$ First tax increment receipt 1994 2001 2004 2004 2015 Date of required decertification 12/31/2019 12/31/2026 12/31/2029 12/31/2029 12/31/2041 *After the receipt of the first tax increment NOTE 15 NOTE RECEIVABLE On February 19, 2014 the City authorized a tax increment financing loan of $250,000 to provide an incentive to relocate a manufacturing company to the City of Stillwater. The agreement requires the manufacturing company to employ 28 full time equivalent employees by July 1, 2013 and then increasing this amount to 35 full time equivalent employees by July 1, 2014. The 35 full time equivalent employees would need to be maintained until January 1, 2019. Each year the manufacturing company is in compliance with the loan agreement, 20% o f the loan amount is forgiven. On January 1, 2019 if the manufacturing company owns the building and has maintained the 35 full time equivalent employees the loan will be fully forgiven. As of December 31, 2018 the manufacturing company is currently in compliance with these loan stipulations, therefore no related receivable is recorded in these financial statements. NOTE 16 CHANGE IN ACCOUNTING PRINCIPLE On December 31, 2018, the City and Commission adopted provisions of GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. Due to the adoption of this Statement it resulted in a restatement of beginning net position for the City and Commission. Governmental Business-type Activities Activities Commission Net position as previously stated 89,411,757$ 14,164,261$ 12,225,080$ Change in accounting principle (17,257,924) (1,613,962) (1,232,379) Net position as restated 72,153,833$ 12,550,299$ 10,992,701$ Required Supplementary Information CITY OF STILLWATER, MINNESOTA PERA SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY December 31, 2018 83 GERF Schedule of the City's Proportionate Share of the Net Pension Liability Last Four Fiscal Years* 6/30/2018 6/30/2017 6/30/2016 6/30/2015 City's portion of the net pension liability 0.06140%0.05980%0.06020%0.05920% City's proportionate share of the net pension liability $3,406,220 $3,817,593 $4,887,941 $3,068,051 State of Minnesota's proportionate share of the net pension liability $111,705 $48,015 $63,853 $0 Total proportionate share of the net pension liability $3,517,925 $3,865,608 $4,951,794 $3,068,051 City's covered payroll $4,122,786 $3,853,463 $3,741,046 $3,312,815 City's proportionate share of the net pension liability as a percentage of its covered payroll 82.62%99.07%130.66%92.61% Plan fiduciary net position as a percentage of the total pension liability 79.50%75.90%68.91%78.20% PEPFF Schedule of the City's Proportionate Share of the Net Pension Liability Last Four Fiscal Years* 6/30/2018 6/30/2017 6/30/2016 6/30/2015 City's portion of the net pension liability 0.26220%0.25500%0.27600%0.26900% City's proportionate share of the net pension liability $2,794,782 $3,442,803 $11,076,360 $3,056,469 City's covered payroll $2,771,643 $2,617,129 $2,657,140 $3,002,740 City's proportionate share of the net pension liability as a percentage of its covered payroll 100.83%131.55%416.85%101.79% Plan fiduciary net position as a percentage of the total pension liability 88.80%85.43%63.88%86.61% GERF Schedule of the Commission's Proportionate Share of the Net Pension Liability Last Four Fiscal Years* 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Commission's portion of the net pension liability 0.00660%0.00610%0.00680%0.00700% Commission's proportionate share of the net pension liability $366,141 $389,420 $552,126 $362,776 State of Minnesota's proportionate share of the net pension liability $12,157 $4,914 $0 $0 Total proportionate share of the net pension liability $378,298 $394,334 $552,126 $362,776 Commission's covered payroll $459,280 $396,339 $423,652 $412,843 Commission's proportionate share of the net pension liability as a percentage of its covered payroll 79.72%98.25%130.33%92.61% Plan fiduciary net position as a percentage of the total pension liability 79.50%75.90%68.91%78.20% *Information prior to the 6/30/2015 measurement date is not available at this time. Measurement Date Measurement Date Measurement Date CITY OF STILLWATER, MINNESOTA PERA SCHEDULE OF CITY CONTRIBUTIONS December 31, 2018 84 GERF Schedules of City Contributions Last Four Fiscal Years 2018 2017 2016 2015 Statutorily required contribution 309,564$ 292,176$ 287,143$ 270,121$ Contributions to the statutorily required contribution 309,564 292,176 287,143 270,121 Contribution deficiency (excess)-$ -$ -$ -$ City's covered payroll 4,127,520$ 3,895,680$ 3,828,573$ 3,601,613$ Contributions as a percentage of covered payroll 7.50%7.50%7.50%7.50% PEPFF Schedule of City Contributions Last Four Fiscal Years 2018 2017 2016 2015 Statutorily required contribution 447,588$ 429,138$ 433,918$ 412,840$ Contributions to the statutorily required contribution 447,588 429,138 433,918 412,840 Contribution deficiency (excess)-$ -$ -$ -$ City's covered payroll 2,762,889$ 2,649,000$ 2,678,506$ 2,548,395$ Contributions as a percentage of covered payroll 16.20%16.20%16.20%16.20% GERF Schedules of Commission Contributions Last Four Fiscal Years 2018 2017 2016 2015 Statutorily required contribution 30,084$ 33,171$ 29,791$ 30,801$ Contributions to the statutorily required contribution 30,084 33,171 29,791 30,801 Contribution deficiency (excess)-$ -$ -$ -$ Commission's covered payroll 401,120$ 442,280$ 397,213$ 410,680$ Contributions as a percentage of covered payroll 7.50%7.50%7.50%7.50% The Amounts Presented for Each Fiscal Year were Determined as of 12/31. CITY OF STILLWATER, MINNESOTA SCHEDULE OF CHANGES IN THE STILLWATER FIRE RELIEF ASSOCIATION’S NET PENSION LIABILITY (ASSET) Last Four Years 85 2017 2016 2015 2014 Total Pension Asset Service Cost 96,366$ 80,881$ 83,445$ 81,410$ Interest 145,369 142,145 130,624 127,896 Differences Between Expected and Actual Experience - (130,192) - - Changes of Assumptions - 15,158 - - Changes of Benefit Terms 327,188 399,663 - - Benefit Payments, Including Member Contribution Refunds (286,103) (166,458) (22,730) (40,200) Other Changes - - - - Net Change in Total Pension Liability 282,820 341,197 191,339 169,106 Total Pension Liability - Beginning 2,815,626 2,474,429 2,283,090 2,113,984 Total Pension Liability - Ending (a)3,098,446 2,815,626 2,474,429 2,283,090 Plan Fiduciary Net Position Municipal Contributions - - - - State Contributions 165,974 164,455 162,031 153,440 Net Investment Income 478,512 221,612 (18,271) 191,334 Benefit Payments (286,103) (166,458) (22,730) (40,200) Administrative Expenses (8,145) (7,745) (7,590) (7,620) Other Changes - - - - Net Change in Fiduciary Net Position 350,238 211,864 113,440 296,954 Fiduciary Net Position - Beginning 3,826,688 3,614,824 3,501,384 3,204,430 Fiduciary Net Position - Ending (b)4,176,926 3,826,688 3,614,824 3,501,384 Association's Net Pension Liability/(Asset) - Ending (a) - (b)(1,078,480)$ (1,011,062)$ (1,140,395)$ (1,218,294)$ Fiduciary Net Position as a Percentage of the Total Pension Liability 134.81%135.91%146.09%153.36% Covered Payroll N/A N/A N/A N/A Net Pension Liability/(Asset) as a Percentage of Covered Payroll N/A N/A N/A N/A Information prior to 2014 is not available at this time. CITY OF STILLWATER, MINNESOTA SCHEDULE OF CITY CONTRIBUTIONS TO STILLWATER FIRE RELIEF ASSOCIATION Last Four Years 86 2018 2017 2016 2015 2014 Statutorily Required Contribution -$ -$ -$ -$ -$ Contributions in Relation to the Statutorily Required Contribution - - - - - Contribution Deficiency (Excess)-$ -$ -$ -$ -$ Information prior to 2014 is not available at this time. CITY OF STILLWATER, MINNESOTA SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS 87 City 2018 Total OPEB liability Service cost 58,658$ Interest 771,549 Benefit payments (894,727) Net changes in total OPEB liability (64,520) Total OPEB liability - beginning 23,765,362 Total OPEB liability - ending 23,700,842$ Covered employee payroll 6,410,754$ Total OPEB liability as a percentage of the covered employee payroll 369.7% Water Commission 2018 Total OPEB liability Service cost 757$ Interest 42,434 Benefit payments (67,122) Net changes in total OPEB liability (23,931) Total OPEB liability - beginning 1,318,402 Total OPEB liability - ending 1,294,471$ Covered employee payroll 384,049$ Total OPEB liability as a percentage of the covered employee payroll 337.1% CITY OF STILLWATER, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 88 General Employees Fund 2018 Changes Changes in Actuarial Assumptions: The morality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per year throug h 2044 and 2.50 percent per year thereafter to 1.25 percent per year. Changes in Plan Provisions: The augmentation adjustment in early retirement factors is eliminated over a five -year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer provisions were repealed. Post-retirement benefit increases were changed from 1.0 percent per year with a provision to increase to 2.5 percent upon attainment of 90 percent funding ratio to 50 percent of the Social Security Cost of Living Adjustment, not less than 1.0 percent and not more than 1.5 percent, beginning January 1, 2019. For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches Normal Retirement Age. Does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions: The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for non-vested deferred member liability. The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for all years to 1.00 percent per year through 2044 and 2.50 percent per year thereafter. Changes in Plan Provisions: The State’s special funding contribution increased from $6 million to $16 million. 2016 Changes Changes in Actuarial Assumptions: The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2035 and 2.50 percent per year thereafter to 1.00 percent per year for all years. The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate was changed from 7.90 percent to 7.50 percent. Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 2015 Changes Changes in Actuarial Assumptions: The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2030 and 2.50 percent per year thereafter to 1.00 percent per year through 2035 and 2.50 percent per year thereafter. CITY OF STILLWATER, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 89 Changes in Plan Provisions: On January 1, 2015 the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised; the State’s contribution of $6 million, which meets the special funding situation definition, is due September 2015. Police and Fire Fund 2018 Changes Changes in Actuarial Assumptions: The morality projection scale was changed from MP-2016 to MP-2017. Changes in Plan Provisions: Post-retirement benefit increases were changed to 1.0 percent for all years, with no trigger. An end date of July 1, 2048 was added to the existing $9.0 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member contributions were changed from 10.8 percent to 11.3 percent of pay, effective Janua ry 1, 2019 and 11.8 percent of pay, effective January 1, 2020. Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective January 1, 2019 and 17.70 percent of pay, effective January 1, 2020. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions: Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP -2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65 percent to 60 percent. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing Joint and Survivor annuities was increased. The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The Single Discount Rate was changed from 5.60 percent per annum to 7.50 percent per annum. CITY OF STILLWATER, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 90 2016 Changes Changes in Actuarial Assumptions: The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2037 and 2.50 percent thereafter to 1.00 percent per year for all future years. The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate changed from 7.90 percent to 5.60 percent. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 2015 Changes Changes in Actuarial Assumptions: The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2030 and 2.50 percent per year thereafter to 1.00 percent per year through 2037 and 2.50 percent per year thereafter. Changes in Plan Provisions: The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, from inflation up to 2.50 percent, to a fixed rate of 2.50 percent. 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. Community Beautification Fund – to account for funds associated with community-wide beautification. Washington County Recycling Grant Fund – to account for funds received from Washington County to fund the recycling fund within the City. Public Safety Programs 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 COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2018 91 Special Revenue Special Revenue Special Library Park/Trail Park Events Donations Dedication Maintenance ASSETS Cash and pooled investments 28,166$ 164,495$ 565,826$ 129,433$ Accrued interest receivable 77 344 954 280 Accounts receivable - 9,801 - - Due from other governments - -- - Prepaid items 15,000 1,564 - - Total Assets 43,243 176,204 566,780 129,713 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable - 9,656 517 - Contracts payable - -- - Total Liabilities - 9,656 517 - Fund Balances: Nonspendable 15,000 1,564 - - Restricted - 164,984 566,263 129,713 Committed 28,243 - - - Total Fund Balances 43,243 166,548 566,263 129,713 Total Liabilities and Fund Balances 43,243$ 176,204$ 566,780$ 129,713$ 92 Special Revenue Special Revenue Total Washington Nonmajor Community County Public Safety Lodging Miscellaneous Governmental Beautification Recycling Grant Programs Tax Grants Funds 32,942$ 233,412$ 79,425$ 74,415$ 172,065$ 1,480,179$ 66.00 500 155 191 - 2,567 - - 630 - - 10,431 - - - - 2,400 2,400 - - 50 - - 16,614 33,008 233,912 80,260 74,606 174,465 1,512,191 - - 1,549 52,200 1,402 65,324 - 10,596 - - - 10,596 - 10,596 1,549 52,200 1,402 75,920 - - 50 - - 16,614 - 223,316 78,661 22,406 53,944 1,239,287 33,008 - - - 119,119 180,370 33,008 223,316 78,711 22,406 173,063 1,436,271 33,008$ 233,912$ 80,260$ 74,606$ 174,465$ 1,512,191$ CITY OF STILLWATER, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2018 93 Special Revenue Special Revenue Special Library Park/Trail Park Events Donations Dedication Maintenance REVENUES Property taxes 47,978$ -$ -$-$ Lodging tax - - -- Intergovernmental - - -- Charges for services - - 215,500 - Fines and forfeits - - - - Investment income: Interest 477 11,927 5,791 1,885 Donations 30,700 48,852 - - Miscellaneous - 17,736 - - Total revenues 79,155 78,515 221,291 1,885 EXPENDITURES Current: General government - - - - Public safety - - - - Public works - - - - Culture and recreation 58,451 51,682 517 - Capital Outlay - 10,968 - - Total expenditures 58,451 62,650 517 - Excess (deficiency) of revenues over expenditures 20,704 15,865 220,774 1,885 OTHER FINANCING SOURCES (USES) Transfers out - - (18,855) - Sale of property - - - - Total other financing sources (uses)- - (18,855) - Net change in fund balances 20,704 15,865 201,919 1,885 Fund balance-January 1 22,539 150,683 364,344 127,828 Fund balance-December 31 43,243$ 166,548$ 566,263$ 129,713$ 94 Special Revenue Total Washington Nonmajor Community County Public Safety Lodging Miscellaneous Governmental Beautification Recycling Grant Programs Tax Grants Funds 15,000$ -$ -$ -$-$ 62,978$ - - - 237,665 - 237,665 - 35,170 - - 137,353 172,523 - - - - - 215,500 - - 8,084 - - 8,084 427 3,203 1,068 1,321 - 26,099 - - 18,836 - 2,800 101,188 - - 7,381 - 20,885 46,002 15,427 38,373 35,369 238,986 161,038 870,039 - - - 289,189 122,542 411,731 - - 28,473 - 34,885 63,358 - 25,544 - - - 25,544 7,229 - - - - 117,879 - - - - 2,498 13,466 7,229 25,544 28,473 289,189 159,925 631,978 8,198 12,829 6,896 (50,203) 1,113 238,061 - - - - - (18,855) - - 6,150 - 1,374 7,524 - - 6,150 - 1,374 (11,331) 8,198 12,829 13,046 (50,203) 2,487 226,730 24,810 210,487 65,665 72,609 170,576 1,209,541 33,008$ 223,316$ 78,711$ 22,406$ 173,063$ 1,436,271$ CITY OF STILLWATER, MINNESOTA SPECIAL EVENTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2018 95 Budgeted Variance with Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Property taxes 47,978$ 47,978$ -$ Investment Income: Interest - 477 477 Donations 10,000 30,700 20,700 Total revenues 57,978 79,155 21,177 EXPENDITURES Current: Culture and recreation 57,978 58,451 (473) Net change in fund balance -$ 20,704 20,704$ Fund balance-January 1 22,539 Fund balance-December 31 43,243$ CITY OF STILLWATER, MINNESOTA COMMUNITY BEAUTIFICATION FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2018 96 Budgeted Variance with Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Property taxes 15,000$ 15,000$ -$ Investment Income: Interest - 427 427 Total revenues 15,000 15,427 427 EXPENDITURES Current: Culture and recreation 15,000 7,229 7,771 Net change in fund balance -$ 8,198 (7,344)$ Fund balance-January 1 24,810 Fund balance-December 31 33,008$ 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, 2018 97 Budgeted Variance with Amounts Final Budget Original and Positive Final Actual Amounts (Negative) REVENUES Intergovernmental 34,618$ 35,170$ 552$ Investment Income: Interest - 3,203 3,203 Total revenues 34,618 38,373 3,755 EXPENDITURES Current: Public works 34,618 25,544 9,074 Excess (deficiency) of revenues over expenditures -$ 12,829 12,829$ Fund balance-January 1 210,487 Fund balance-December 31 223,316$ Other Supplementary Information CITY OF STILLWATER, MINNESOTA SCHEDULE OF SPECIAL REVENUE FUND – LIBRARY DONATIONS FUND BALANCE SHEET December 31, 2018 98 Mcluer-Hollis R.Personnel Helen Minerva Webster Murdock Grant Lawson ASSETS Cash and pooled investments 24,644$ 10,469$ 1,866$ (5)$ 49,643$ Accrued interest receivable 53 23 4 - 95 Accounts receivable - - - 123 - Prepaid Expenses - - - - - Total Assets 24,697$ 10,492$ 1,870$ 118$ 49,738$ LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -$ -$ -$ -$ -$ Fund balance: Nonspendable - - - - - Restricted 24,697 10,492 1,870 118 49,738 Unassigned - - - - - Total fund balance 24,697 10,492 1,870 118 49,738 Total liabilities and fund balance 24,697$ 10,492$ 1,870$ 118$ 49,738$ 99 Friends Stillwater Total Doctor H.of the Library Miscellaneous Library Van Meier Gifts Library Foundation Kilty Donations Donations 1,294$ 11,753$ 244$ (961)$ 50,420$ 15,128$ 164,495$ 3 21 - - 109 36 344 - - - 8,595 - 1,083 9,801 - - - 1,564 - - 1,564 1,297$ 11,774$ 244$ 9,198$ 50,529$ 16,247$ 176,204$ -$ -$ 244$ 8,584$ -$ 828$ 9,656$ - - - 1,564 - - 1,564 1,297 11,774 - - 50,529 15,419 165,934 - - - (950) - - (950) 1,297 11,774 - 614 50,529 15,419 166,548 1,297$ 11,774$ 244$ 9,198$ 50,529$ 16,247$ 176,204$ CITY OF STILLWATER, MINNESOTA SCHEDULE OF SPECIAL REVENUE FUND – LIBRARY DONATIONS FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BAL ANCE Year Ended December 31, 2018 100 Mcluer-Hollis R.Personnel Helen Minerva Webster Murdock Grant Lawson REVENUES Investment Income: Interest 357$ 155$ 27$ -$ 10,463$ Donations - - - - - Miscellaneous - - - 17,736 - Total revenues 357 155 27 17,736 10,463 EXPENDITURES Personnel Services - - - 17,736 - Supplies - - - - - Miscellaneous - - - - 477 Capital outlay - - - - - Total expenditures - - - 17,736 477 Net change in fund balances 357 155 27 - 9,986 Fund balances, January 1 24,340 10,337 1,843 118 39,752 Fund balances, December 31 24,697$ 10,492$ 1,870$ 118$ 49,738$ 101 Friends Stillwater Total Doctor H.of the Library Miscellaneous Library Van Meier Gifts Library Foundation Kilty Donations Donations 20$ 108$ -$ -$ 471$ 326$ 11,927$ - 5,000 3,629 32,085 - 8,138 48,852 - - - - - - 17,736 20 5,108 3,629 32,085 471 8,464 78,515 - - - - - - 17,736 - - - 12,147 - 3,590 15,737 - - 3,629 8,970 - 5,133 18,209 - - - 10,968 - - 10,968 - - 3,629 32,085 - 8,723 62,650 20 5,108 - - 471 (259) 15,865 1,277 6,666 - 614 50,058 15,678 150,683 1,297$ 11,774$ -$ 614$ 50,529$ 15,419$ 166,548$ CITY OF STILLWATER, MINNESOTA SCHEDULE OF DEBT SERVICE FUND BALANCE SHEET December 31, 2018 102 308 309 312/512 314 $1,445,000 $1,455,000 $6,355,000 $9,215,000 C.O.C.O.C.O.C.O. Bonds of Bonds of Bonds of Bonds of 2008A 2009A 2012A 2014A ASSETS Cash and pooled investments 842$ 706$ 1,313,224$ 707,079$ Funds held in escrow - - - - Accrued interest receivable 2 3 2,124 704 Taxes receivable: Delinquent - - 5,083 5,595 Due from county - - 3,583 4,674 Special assessments receivable: Delinquent - - 2,401 - Total Assets 844$ 709$ 1,326,415$ 718,052$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Deferred Inflows of Resources: Unavailable revenue -$ -$7,485$ 5,595$ Fund Balances: Restricted 844 709 1,318,930 712,457 Total Fund Balances 844 709 1,318,930 712,457 Total Liabilities, Deferred Inflows of Resources and Fund Balances 844$ 709$ 1,326,415$ 718,052$ 103 315 316 318 319 324 326 $3,160,000 $6,400,000 $1,005,000 $6,505,000 C.O.Debt C.O.C.O.C.O. Bonds of Bonds of Service Bonds of Amory Bonds of 2005B 2006A Fund 2009B Land 2016A 173$ -$ 444,874$ 198,772$ (130)$ 1,153,439$ - - - - - - 78 - 278 291 54 1,380 - 2,206 - 1,531 702 7,174 - - 2,950 684 558 3,135 - - - - - - 251$ 2,206$ 448,102$ 201,278$ 1,184$ 1,165,128$ -$ 2,206$ -$ 1,531$ 702$ 7,174$ 251 - 448,102 199,747 482 1,157,954 251 - 448,102 199,747 482 1,157,954 251$ 2,206$ 448,102$ 201,278$ 1,184$ 1,165,128$ CITY OF STILLWATER, MINNESOTA SCHEDULE OF DEBT SERVICE FUND BALANCE SHEET (CONTINUED) December 31, 2018 104 327 329 360 560 $3,405,000 $4,095,000 $2,450,000 C.O.C.O.TIF Escrow Bonds of Bonds of Bonds of Bonds 2017A 2009D 2016B 2016B ASSETS Cash and pooled investments 380,342$ 973,204$ (40,829)$ -$ Funds held in escrow - - - 3,475,155 Accrued interest receivable 331 1,666 - - Taxes receivable: Delinquent 2,885 3,128 - - Due from county 4,873 2,228 - - Special assessments receivable: Delinquent - - - - Total Assets 388,431$ 980,226$ (40,829)$ 3,475,155$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Deferred Inflows of Resources: Unavailable revenue 2,885$ 3,128$ -$ -$ Fund Balances: Restricted 385,546 977,098 (40,829) 3,475,155 Total Fund Balances 385,546 977,098 (40,829) 3,475,155 Total Liabilities, Deferred Inflows of Resources and Fund Balances 388,431$ 980,226$ (40,829)$ 3,475,155$ 105 370 376 576 385 389 $5,300,000 $6,585,000 $2,695,000 $1,420,000 Total TIF TIF Escrow Revenue Revenue Debt Bonds of Bonds Bonds Bonds of Bonds of Service 2008B 2016C 2016C 2005C 2009C Fund 7,682$ -$ -$ 167,003$ 380,828$ 5,687,209$ - - 299,744 - - 3,774,899 - - - 361 588 7,860 - - - 376 350 29,030 - - - 5 5 22,695 - - - - - 2,401 7,682$ -$ 299,744$ 167,745$ 381,771$ 9,524,094$ -$ -$ -$ 376$ 350$ 31,432$ 7,682 - 299,744 167,369 381,421 9,492,662 7,682 - 299,744 167,369 381,421 9,492,662 7,682$ -$ 299,744$ 167,745$ 381,771$ 9,524,094$ CITY OF STILLWATER, MINNESOTA SCHEDULE OF DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Year Ended December 31, 2018 106 308 309 312/512 314 1,445,000 $1,455,000 $6,355,000 $9,215,000 C.O.C.O.C.O.C.O. Bonds of Bonds of Bonds of Bonds of 2008A 2009A 2012A 2014A Revenues: Property taxes -$ -$ 542,261$ 708,090$ Special assessments - - 3,931 - Investment income: Interest 844 709 14,222 4,329 Miscellaneous - - 3,238 454 Total revenues 844 709 563,652 712,873 Expenditures: Debt service: Principal - - 465,000 425,000 Interest - - 70,203 253,991 Paying agent fees - - 500 500 Miscellaneous - - 318 318 Total expenditures - - 536,021 679,809 Revenues over (under) expenditures 844 709 27,631 33,064 Other financing sources (uses): Transfers in - - - - Transfers (out)- - - - Total other financing sources - - - - Net change in fund balance 844 709 27,631 33,064 Fund Balances, January 1 - - 1,291,299 679,393 Fund Balances, December 31 844$ 709$ 1,318,930$ 712,457$ 107 315 316 318 319 324 326 $3,160,000 $6,400,000 $1,005,000 $6,505,000 C.O.C.O.Debt C.O.C.O.C.O. Bonds of Bonds of Service Bonds of Amory Bonds of 2005B 2006A Fund 2009B 2016A' -$ -$447,768$ 103,331$ 84,659$ 813,800$ - - - - - - 251 - 896 1,912 414 8,039 - - 288 66 54 521 251 - 448,952 105,309 85,127 822,360 - - - 95,000 - 620,000 - - - 4,750 - 147,950 - - 850 450 - 450 - - - 318 - 318 - - 850 100,518 - 768,718 251 - 448,102 4,791 85,127 53,642 - - - - - - - - - - (84,924) - - - - - (84,924) - 251 - 448,102 4,791 203 53,642 - - - 194,956 279 1,104,312 251$ -$ 448,102$ 199,747$ 482$ 1,157,954$ CITY OF STILLWATER, MINNESOTA SCHEDULE OF DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED) Year Ended December 31, 2018 108 327 329 360 560 $3,405,000 $4,095,000 2,450,000 C.O.C.O.TIF Escrow Bonds of Bonds of Bonds of Bonds 2017A 2009D 2016B 2016B Revenues: Property taxes 399,054$ 337,290$ -$ -$ Special assessments - - - - Investment income: Interest 2,012 11,043 - 33,904 Miscellaneous 256 216 - - Total revenues 401,322 348,549 - 33,904 Expenditures: Debt service: Principal 380,000 280,000 - - Interest 81,751 45,113 - 64,019 Paying agent fees 450 450 450 - Miscellaneous 443 318 319 - Total expenditures 462,644 325,881 769 64,019 Revenues over (under) expenditures (61,322) 22,668 (769) (30,115) Other financing sources (uses): Transfers in - - - - Transfers (out)- - - - Total other financing sources - - - - Net change in fund balance (61,322) 22,668 (769) (30,115) Fund balance, January 1 446,868 954,430 (40,060) 3,505,270 Fund balance, December 31 385,546$ 977,098$ (40,829)$ 3,475,155$ 109 376 576 370 385 389 6,585,000 5,300,000 $2,695,000 $1,420,000 Total TIF Escrow TIF Sports Ctr Sports Ctr Debt Bonds Bonds Bonds of Bonds of Bonds of Service 2016C 2016C 2008B 2005C 2009C Fund -$ -$-$ 573$ 533$ 3,437,359$ -- - - - 3,931 -3,500 - 4,748 4,091 90,914 - -- -- 5,093 -3,500 - 5,321 4,624 3,537,297 385,000 - 225,000 - 150,000 3,025,000 187,324 - 157,795 - 13,275 1,026,171 2,000 --425 450 6,975 318 - 318 - 318 3,306 574,642 - 383,113 425 164,043 4,061,452 (574,642) 3,500 (383,113) 4,896 (159,419) (524,155) 574,642 - 383,245 - 174,326 1,132,213 - - - - - (84,924) 574,642 - 383,245 - 174,326 1,047,289 -3,500 132 4,896 14,907 523,134 - 296,244 7,550 162,473 366,514 8,969,528 -$ 299,744$ 7,682$ 167,369$ 381,421$ 9,492,662$ CITY OF STILLWATER, MINNESOTA SCHEDULE OF TIF DISTRICTS FUND BALANCE SHEET December 31, 2018 110 TIF TIF TIF TIF TIF District District District District District #1 #4 #6 #8 #9 (Decertified)(Decertified) ASSETS Cash and pooled investments 2,166,112$ 4,081,733$ 867,531$ 209,519$ 135,245$ Accrued interest receivable 4,693 8,824 1,802 333 218 Taxes receivable: Delinquent - - - - - Due from county - - - 826 - Special assessments receivable: Deferred 126,840 - - - - Total Assets 2,297,645 4,090,557 869,333 210,678 135,463 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 6,914 - - - - Contracts payable - - - - 32,913 Due to other governments - - - - 11,950 Total Liabilities 6,914 - - - 44,863 Deferred Inflows of Resources: Unavailable revenue 126,840 - - - - Fund Balances: Restricted 2,163,891 4,090,557 869,333 210,678 90,600 Total Liabilities, Deferred Inflows of Resources and Fund Balances 2,297,645$ 4,090,557$ 869,333$ 210,678$ 135,463$ 111 TIF TIF TIF TIF TIF Total District District District District District TIF #10 #11 #12 #13 #14 Districts 1,388,778$ (460,273)$ (63,955)$ (28,131)$ (5,944)$ 8,290,615$ 1,413 - - - - 17,283 2,588 - - - - 2,588 26,794 - - - - 27,620 - - - - - 126,840 1,419,573 (460,273) (63,955) (28,131) (5,944) 8,464,946 - - - - -6,914 - 863 - - 806 34,582 - - - - - 11,950 - 863 - - 806 53,446 2,588 - - - - 129,428 1,416,985 (461,136) (63,955) (28,131) (6,750) 8,282,072 1,419,573$ (460,273)$ (63,955)$ (28,131)$ (5,944)$ 8,464,946$ CITY OF STILLWATER, MINNESOTA SCHEDULE OF TIF DISTRICTS FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BAL ANCE Year Ended December 31, 2018 112 TIF TIF TIF TIF TIF District District District District District #1 #4 #6 #8 #9 (Decertified)(Decertified) REVENUES Tax Increment -$ -$ 46,877$ 109,742$ 72,486$ Special assessments 27,897 - - - - Investment income: Interest 31,481 59,397 11,899 2,102 1,412 Miscellaneous 45 - - - - Total revenues 59,423 59,397 58,776 111,844 73,898 EXPENDITURES Current: Economic development 39,837 13 250 77,677 50,096 Debt Service: Interest - - - - 44,734 Total expenditures 39,837 13 250 77,677 94,830 Excess (deficiency) of revenues over expenditures 19,586 59,384 58,526 34,167 (20,932) OTHER FINANCING SOURCES (USES) Transfers (out)- - - - - Net change in fund balance 19,586 59,384 58,526 34,167 (20,932) Fund balance-January 1 2,144,305 4,031,173 810,807 176,511 111,532 Fund balance-December 31 2,163,891$ 4,090,557$ 869,333$ 210,678$ 90,600$ 113 TIF TIF TIF TIF TIF Total District District District District District TIF #10 #11 #12 #13 #14 Districts 1,282,000$ 1,151$ 613$ -$ -$ 1,512,869$ - - - - - 27,897 7,320 - - - - 113,611 - - - - - 45 1,289,320 1,151 613 - - 1,654,422 16,743 125,787 9,881 1,862 - 322,146 - - - - - 44,734 16,743 125,787 9,881 1,862 - 366,880 1,272,577 (124,636) (9,268) (1,862) - 1,287,542 (957,887) - - - - (957,887) 314,690 (124,636) (9,268) (1,862) - 329,655 1,102,295 (336,500) (54,687) (26,269) (6,750) 7,952,417 1,416,985$ (461,136)$ (63,955)$ (28,131)$ (6,750)$ 8,282,072$ CITY OF STILLWATER, MINNESOTA SCHEDULE OF PROPRIETARY FUND – PARKING FUND STATEMENT OF NET POSITION December 31, 2018 114 720 725 General Parking Parking Ramp Total ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash and pooled investments 846,512$ 47,234$ 893,746$ Accrued interest receivable 1,751 - 1,751 Accounts receivable - 862 862 Prepaid items 1,016 52 1,068 Total current assets 849,279 48,148 897,427 CAPITAL ASSETS Land 122,919 279,701 402,620 Building and other improvements 39,576 6,024,789 6,064,365 Improvements other than building 1,437,555 - 1,437,555 Machinery and equipment 165,770 179,210 344,980 Vehicles 31,851 - 31,851 Construction in progress 64,269 - 64,269 Less accumulated depreciation (716,325) (753,323) (1,469,648) Net capital assets 1,145,615 5,730,377 6,875,992 Total assets 1,994,894 5,778,525 7,773,419 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - pensions 9,931 - 9,931 Deferred outflows of resources - OPEB 8,179 - 8,179 Total deferred outflows 18,110 - 18,110 Total assets and deferred outflows of resources 2,013,004$ 5,778,525$ 7,791,529$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION LIABILITIES Current liabilities Accounts payable 5,361$ 3,499$ 8,860$ Contracts payable 1,275 1,620 2,895 Salaries payable 10,027 - 10,027 Compensated absences payable 2,745 - 2,745 Total OPEB liability 8,179 - 8,179 Total current liabilities 27,587 5,119 32,706 Noncurrent liabilities Compensated absences 25,851 - 25,851 Total OPEB liability 201,439 - 201,439 Net pension liability 50,920 - 50,920 Total noncurrent liabilities 278,210 - 278,210 Total liabilities 305,797 5,119 310,916 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pensions 12,579 - 12,579 NET POSITION Investment in capital assets 1,145,615 5,730,377 6,875,992 Unrestricted 549,013 43,029 592,042 Total net position 1,694,628 5,773,406 7,468,034 Total liabilities, deferred inflows of resources, and net position 2,013,004$ 5,778,525$ 7,791,529$ CITY OF STILLWATER, MINNESOTA SCHEDULE OF PROPRIETARY FUND – PARKING FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Year Ended December 31, 2018 115 720 725 General Parking Parking Ramp Total OPERATING REVENUES Charges for services 319,391$ 140,473$ 459,864$ OPERATING EXPENSES Personnel services 119,183 - 119,183 Supplies 26,070 451 26,521 Other services and charges 45,526 69,026 114,552 Miscellaneous 11,082 17,295 28,377 Depreciation 79,287 91,230 170,517 Total operating expenses 281,148 178,002 459,150 Income (loss) from operations 38,243 (37,529) 714 NONOPERATING REVENUES (EXPENSES) Interest income 10,756 - 10,756 Other income 4,406 153 4,559 Total nonoperating revenues 15,162 153 15,315 CHANGE IN NET POSITION 53,405 (37,376) 16,029 NET POSITION Net position, January 1 1,808,133 5,810,782 7,618,915 Prior period restatement for implementation of GASB standard 75 (See Note 16)(166,910) - (166,910) Net position, January 1 - as restated 1,641,223 5,810,782 7,452,005 Net position, December 31 1,694,628$ 5,773,406$ 7,468,034$ CITY OF STILLWATER, MINNESOTA SCHEDULE OF PROPRIETARY FUND – PARKING FUND STATEMENT OF CASH FLOWS Year Ended December 31, 2018 116 720 725 General Parking Parking Ramp Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 319,467$ 139,611$ 459,078$ Payments to suppliers (77,428) (87,299) (164,727) Payments to employees (120,857) - (120,857) Net cash from operating activities 121,182 52,312 173,494 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State aid subsidy 389 - 389 Net cash from noncapital financing activities 389 - 389 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (13,962) (4,477) (18,439) Proceeds from taxes, assessments, connections 4,017 153 4,170 Net cash from capital and related financing activities (9,945) (4,324) (14,269) CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments 10,627 - 10,627 Net cash from investing activities 10,627 - 10,627 Net increase (decrease) in cash and cash equivalents 122,253 47,988 170,241 Cash and cash equivalents, January 1 724,259 (754) 723,505 Cash and cash equivalents, December 31 846,512$ 47,234$ 893,746$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss)38,243$ (37,529)$ 714$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 79,287 91,230 170,517 (Increase) Decrease in Assets: Accounts receivable 76 (862) (786) Prepaid items (111) - (111) Deferred outflows - pensions 5,263 - 5,263 Deferred outflows - OPEB (266) - (266) Increase (Decrease) in Liabilities: Accounts and contracts payable 5,361 (458) 4,903 Salaries payable 2,417 - 2,417 Due to component unit - (69) (69) Compensated absences payable 1,422 - 1,422 Net OPEB obligation (2,505) - (2,505) Net pension liability (9,577) - (9,577) Deferred inflows - pensions 1,572 - 1,572 Total adjustments 82,939 89,841 172,780 Net cash from operating activities 121,182$ 52,312$ 173,494$ 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 Page Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 117 Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 127 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. 134 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. 140 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. 143 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 POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) 117 2009 2010 2011 2012 Governmental activities Net investment in capital assets 59,625,739$ 63,897,204$ 66,721,568$ 69,379,907$ Restricted 11,550,855 6,218,147 14,529,945 14,583,754 Unrestricted 13,759,760 12,433,375 5,481,558 4,766,219 Total governmental activities net position 84,936,354$ 82,548,726$ 86,733,071$ 88,729,880$ Business-type activities Net investment in capital assets 7,155,514$ 13,329,996$ 13,662,786$ 13,242,875$ Unrestricted 2,235,823 2,131,624 1,472,051 1,689,198 Total business-type activities net position 9,391,337$ 15,461,620$ 15,134,837$ 14,932,073$ Primary Government Net investment in capital assets 66,781,253$ 77,227,200$ 80,384,354$ 82,622,782$ Restricted 11,550,855 6,218,147 14,529,945 14,583,754 Unrestricted 15,995,583 14,564,999 6,953,609 6,455,417 Total primary government net position 94,327,691$ 98,010,346$ 101,867,908$ 103,661,953$ Fiscal Year 118 2013 2014 2015 2016 2017 2018 70,767,539$ 71,030,940$ 69,919,712$ 71,049,412$ 74,085,103$ 74,547,220$ 14,742,599 23,628,141 19,805,481 25,170,874 29,073,515 30,897,232 5,832,591 (2,624,152) (2,162,160) (13,610,309) (13,746,861) (29,102,791) 91,342,729$ 92,034,929$ 87,563,033$ 82,609,977$ 89,411,757$ 76,341,661$ 12,897,606$ 12,662,766$ 13,307,269$ 13,195,217$ 13,395,604$ 13,286,058$ 1,426,104 1,482,615 1,492,698 1,347,815 768,657 (1,058,464) 14,323,710$ 14,145,381$ 14,799,967$ 14,543,032$ 14,164,261$ 12,227,594$ 83,665,145$ 83,693,706$ 83,226,981$ 84,244,629$ 87,480,707$ 87,833,278$ 14,742,599 23,628,141 19,805,481 25,170,874 29,073,515 30,897,232 7,258,695 (1,141,537) (669,462) (12,262,494) (12,978,204) (30,161,255) 105,666,439$ 106,180,310$ 102,363,000$ 97,153,009$ 103,576,018$ 88,569,255$ Fiscal Year CITY OF STILLWATER, MINNESOTA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) 119 2009 2010 2011 2012 Expenses Governmental activities: General government 2,885,730$ 2,948,354$ 3,208,084$ 3,181,051$ Public Safety 4,430,687 4,405,907 4,658,726 4,630,601 Public Works 2,796,633 2,739,684 2,625,642 2,911,405 Culture and recreation 4,317,878 4,405,463 4,533,431 4,337,935 Economic development 412,598 969,992 1,178,219 961,305 Interest on long-term debt 1,381,994 1,117,505 818,292 899,473 Total governmental activities expenses 16,225,520 16,586,905 17,022,394 16,921,770 Business-type activities: Sanitary Sewer 2,183,972 2,290,662 2,342,657 2,287,456 Storm Sewer 507,991 410,780 438,779 390,746 Signs & Lighting 370,858 397,014 395,184 393,106 Parking 200,143 260,465 354,863 347,788 Total business-type activities expenses 3,262,964 3,358,921 3,531,483 3,419,096 Total primary government expenses 19,488,484$ 19,945,826$ 20,553,877$ 20,340,866$ Program Revenues Governmental activities: Charges for services: General government 448,203$ 282,194$ 396,098$ 408,500$ Public Safety 1,036,219 931,701 886,011 893,618 Public Works 143,959 596,622 52,715 30,708 Culture and recreation 1,807,220 1,660,390 1,658,286 1,712,722 Economic development 2,625 397 15,875 10,665 Operating grants and contributions 455,328 475,432 683,845 516,674 Capital grants and contributions 1,173,898 2,676,036 3,279,841 1,985,996 Total governmental activities program revenues 5,067,452 6,622,772 6,972,671 5,558,883 Business-type activities: Charges for services: Sanitary Sewer 1,905,076 1,912,336 2,193,839 1,953,380 Storm Sewer 491,514 491,292 528,346 494,910 Signs & Lighting 372,524 405,802 381,980 379,471 Parking 178,588 233,004 261,711 258,050 Total business-type activities program revenues 2,947,702 3,042,434 3,365,876 3,085,811 Total primary government program revenues 8,015,154$ 9,665,206$ 10,338,547$ 8,644,694$ Net (Expense)/Revenue Governmental activities (11,158,068)$ (9,964,133)$ (10,049,723)$ (11,362,887)$ Business-type activities (315,262) (316,487) (165,607) (333,285) Total primary government net expense (11,473,330)$ (10,280,620)$ (10,215,330)$ (11,696,172)$ Fiscal Year 120 2013 2014 2015 2016 2017 2018 3,339,741$ 3,541,235$ 3,780,858$ 4,366,424$ 4,456,152$ 4,564,749$ 4,751,921 5,114,113 5,414,392 7,059,377 6,692,653 6,390,804 3,125,331 3,416,259 3,256,154 3,385,412 3,340,782 4,442,535 4,163,006 4,580,839 4,561,236 4,768,962 4,861,962 3,683,368 1,269,417 1,130,931 991,412 7,010,850 291,330 277,549 1,142,756 1,019,547 828,193 1,295,302 1,072,597 1,221,607 17,792,172 18,802,924 18,832,245 27,886,327 20,715,476 20,580,612 2,574,793 2,513,434 2,315,948 2,848,988 2,990,283 3,590,043 417,073 520,839 498,336 526,292 577,812 579,610 356,397 352,981 354,193 366,118 312,631 395,821 367,965 363,001 363,914 447,272 448,160 459,150 3,716,228 3,750,255 3,532,391 4,188,670 4,328,886 5,024,624 21,508,400$ 22,553,179$ 22,364,636$ 32,074,997$ 25,044,362$ 25,605,236$ 389,334$ 447,287$ 608,313$ 473,930$ 403,129$ 348,883$ 860,259 1,027,391 1,038,999 1,015,496 1,357,058 1,591,519 85,980 57,718 99,199 414,733 397,170 1,031,032 1,662,683 1,807,857 1,704,324 1,855,984 1,916,982 2,070,711 52,722 38,215 1,112 - - - 549,848 548,579 697,228 652,863 868,811 1,000,747 3,499,142 1,281,756 746,429 3,558,295 6,630,514 2,533,262 7,099,968 5,208,803 4,895,604 7,971,301 11,573,664 8,576,154 1,958,328 2,344,479 2,351,072 2,486,019 2,584,047 3,160,024 511,498 554,528 624,198 638,621 642,510 603,410 380,579 382,758 386,406 387,937 389,296 390,720 270,921 334,720 408,045 404,171 396,975 464,423 3,121,326 3,616,485 3,769,721 3,916,748 4,012,828 4,618,577 10,221,294$ 8,825,288$ 8,665,325$ 11,888,049$ 15,586,492$ 13,194,731$ (10,692,204)$ (13,594,121)$ (13,936,641)$ (19,915,026)$ (9,141,812)$ (12,004,458)$ (594,902) (133,770) 237,330 (271,922) (316,058) (406,047) (11,287,106)$ (13,727,891)$ (13,699,311)$ (20,186,948)$ (9,457,870)$ (12,410,505)$ Fiscal Year CITY OF STILLWATER, MINNESOTA CHANGES IN NET POSITION (CONTINUED) LAST TEN FISCAL YEARS (accrual basis of accounting) 121 Fiscal Year 2009 2010 2011 2012 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes 10,228,046$ 9,709,376$ 9,771,259$ 9,771,259$ Tax increment 3,102,744 3,075,912 3,141,704 3,141,704 Lodging tax 137,387 139,026 144,891 144,891 Franchise taxes 426,754 425,617 431,579 431,579 Unrestricted grants and contributions 405,885 270,671 283,759 283,759 Unrestricted investment earnings 491,432 297,177 221,783 221,783 Gain on sale of capital assets 76,311 8,572 43,875 43,875 Transfers (90,628) (6,349,846) 195,218 195,218 Total governmental activities 14,777,931 7,576,505 14,234,068 14,234,068 Business-type activities: Unrestricted investment earnings 54,590 36,924 34,042 34,042 Property taxes - - - - Transfers 90,628 6,349,846 (195,218) (195,218) Total business-type activities 145,218 6,386,770 (161,176) (161,176) Total primary government 14,923,149$ 13,963,275$ 14,072,892$ 14,072,892$ Change in Net Position Governmental activities 3,619,863$ (2,387,628)$ 4,184,345$ 2,871,181$ Business-type activities (170,044) 6,070,283 (326,783) (494,461) Total primary government 3,449,819$ 3,682,655$ 3,857,562$ 2,376,720$ Fiscal Year 122 Fiscal Year 2013 2014 2015 2016 2017 2018 10,763,810$ 10,667,680$ 11,360,724$ 12,068,746$ 12,554,501$ 12,821,075$ 2,323,463 1,355,841 1,362,487 1,373,886 1,443,648 1,512,869 169,283 182,267 198,544 211,723 218,821 237,665 143,118 444,672 449,333 462,988 467,214 351,721 291,805 693,752 647,927 662,095 734,034 747,981 (407,813) 813,500 309,330 175,342 390,082 496,595 21,687 6,685 - - 33,500 24,380 - 121,624 (818,115) 7,190 101,792 - 13,305,353 14,286,021 13,510,230 14,961,970 15,943,592 16,192,286 (13,461) 63,278 35,821 22,177 39,079 37,942 - - - - - 45,400 - (121,624) 818,115 (7,190) (101,792) - (13,461) (58,346) 853,936 14,987 (62,713) 83,342 13,291,892$ 14,227,675$ 14,364,166$ 14,976,957$ 15,880,879$ 16,275,628$ 2,613,149$ 691,900$ (426,411)$ (4,953,056)$ 6,801,780$ 4,187,828$ (608,363) (192,116) 1,091,266 (256,935) (378,771) (322,705) 2,004,786$ 499,784$ 664,855$ (5,209,991)$ 6,423,009$ 3,865,123$ CITY OF STILLWATER, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 123 2009 2010 2011 2012 General Fund Reserved 101,597$ 101,597$ -$ -$ Unreserved 4,119,597 4,119,597 - - Nonspendable - - 103,141 107,485 Assigned - - 952,367 1,068,175 Unassigned - - 3,112,690 3,086,290 Total general fund 4,221,194$ 4,221,194$ 4,168,198$ 4,261,950$ All Other Governmental Funds Reserved reported in: Special revenue funds 12,014$ 12,014$ -$ -$ Debt service funds 11,484,916 11,484,916 - - Unreserved reported in: Special revenue funds 2,361,837 2,361,837 - - Capital project funds 14,111,439 14,111,439 - - Nonspendable - - 13,070 14,645 Restricted - - 17,103,718 21,606,729 Committed - - 1,474,010 1,914,102 Assigned - - 3,347,961 1,975,186 Unassigned - - - - Total all other governmental funds 27,970,206$ 27,970,206$ 21,938,759$ 25,510,662$ Note: Beginning with fiscal year 2011, the City of Stillwater implemented (prospectively) GASB 54 which redefined fund balance reporting. Fiscal Year 124 2013 2014 2015 2016 2017 2018 -$ -$ -$ -$ -$ -$ - - - - - - 118,411 148,651 148,686 81,749 157,495 186,539 1,053,449 1,106,624 1,243,101 1,243,101 1,315,041 1,477,834 3,009,787 3,008,334 3,033,213 3,127,595 3,479,741 3,670,736 4,181,647$ 4,263,609$ 4,425,000$ 4,452,445$ 4,952,277$ 5,335,109$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - 14,469 15,814 17,320 25,912 15,005 64,425 21,057,191 26,638,434 18,838,078 27,996,173 25,138,964 27,040,698 2,082,960 2,548,082 3,042,469 3,438,415 4,074,625 4,574,745 2,125,283 2,101,718 2,404,725 2,942,937 3,334,837 3,459,251 - (4,228) - - - - 25,279,903$ 31,299,820$ 24,302,592$ 34,403,437$ 32,563,431$ 35,139,119$ Fiscal Year CITY OF STILLWATER, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 125 2009 2010 2011 2012 Revenues Taxes: Property taxes 9,646,261$ 9,689,084$ 9,864,955$ 10,225,830$ Tax increment 3,046,960 3,033,542 3,165,218 2,224,672 Lodging tax 137,387 139,026 144,891 151,249 Franchise taxes 426,754 425,617 431,579 437,774 Licenses and permits 435,128 406,553 474,747 408,540 Special assessments 882,732 1,144,498 1,032,357 1,022,849 Intergovernmental 1,450,439 1,338,010 1,427,025 803,977 Charges for services 2,787,660 3,845,833 2,510,703 2,406,608 Fines and forfeits 226,852 140,550 120,995 141,271 Interest 460,295 264,358 183,157 134,072 Donations 195,183 102,978 62,679 183,244 Miscellaneous 336,651 332,728 355,066 537,484 Total revenues 20,032,302 20,862,777 19,773,372 18,677,570 Expenditures General government 2,480,618 2,622,089 2,825,628 2,774,609 Public safety 3,964,424 3,848,968 4,150,102 4,137,468 Public works 1,285,715 1,401,869 1,338,101 1,364,571 Culture and recreation 3,193,529 3,096,534 3,180,832 2,961,505 Economic development 456,996 996,174 1,185,131 970,495 Capital outlay 8,417,419 4,001,559 2,903,477 5,338,735 Debt Service Principal 3,385,000 3,489,247 4,389,731 2,990,238 Interest 1,286,753 1,251,356 952,508 818,860 Other 188,294 18,956 13,131 136,557 Total expenditures 24,658,748 20,726,752 20,938,641 21,493,038 Excess (deficiency) of revenues over expenditures (4,626,446) 136,025 (1,165,269) (2,815,468) Other Financing Sources (Uses) Proceeds from borrowing, net 8,189,631 - - 6,505,582 Transfers in 4,039,187 3,342,910 2,989,830 2,826,774 Transfer (out)(3,951,815) (3,342,910) (2,751,275) (2,932,961) Capital lease 51,324 - - - Sale of property 122,533 67,371 43,875 81,728 Payment on refunded debt (1,050,000) (5,405,000) - - Total other financing sources (uses) 7,400,860 (5,337,629) 282,430 6,481,123 Net change in fund balances 2,774,414$ (5,201,604)$ (882,839)$ 3,665,655$ Debt service as a percentage of noncapital expenditures 23.8% 28.1% 29.6% 29.6% Fiscal Year 126 2013 2014 2015 2016 2017 2018 10,514,800$ 10,710,930$ 11,367,534$ 12,100,943$ 12,654,828$ 12,818,222$ 2,334,508 1,328,951 1,370,469 1,372,407 1,424,791 1,512,869 169,283 182,266 198,544 211,723 218,820 237,665 441,958 444,672 449,333 462,988 467,214 351,721 412,498 476,572 574,860 502,476 819,172 981,289 972,560 895,715 924,432 1,274,144 1,082,560 1,219,697 2,041,027 1,701,663 1,410,519 2,038,847 1,467,311 2,412,168 3,870,905 2,440,925 2,283,432 3,555,525 3,435,785 3,318,855 114,194 119,114 118,113 70,256 84,369 233,394 (486,298) 794,042 212,404 (116,034) 162,819 496,595 40,292 92,739 96,269 129,479 232,988 148,456 431,798 514,189 500,443 1,396,557 690,403 663,207 20,857,525 19,701,778 19,506,352 22,999,311 22,741,060 24,394,138 3,025,938 3,238,842 3,458,847 3,829,183 4,008,578 4,300,275 4,336,628 4,628,286 4,762,211 5,092,685 5,230,427 5,682,655 1,296,596 1,378,122 1,252,685 1,330,771 1,331,395 1,478,505 3,147,173 3,216,992 3,173,176 3,381,088 3,537,419 3,641,969 1,276,973 1,149,256 997,280 7,045,568 303,818 322,146 2,768,347 6,086,226 6,125,577 3,350,489 7,745,376 7,851,141 2,803,835 2,595,773 2,470,000 2,815,000 4,525,000 3,110,000 881,859 726,634 949,558 775,294 1,065,123 1,104,530 40,386 160,234 7,855 410,664 75,444 89,751 19,577,735 23,180,365 23,197,189 28,030,742 27,822,580 27,580,972 1,279,790 (3,478,587) (3,690,837) (5,031,431) (5,081,520) (3,186,834) - 9,434,686 - 16,362,531 3,527,632 6,120,974 1,167,575 1,843,344 2,467,988 2,966,121 3,565,058 2,437,492 (1,167,575) (1,721,720) (2,367,988) (2,958,931) (3,463,266) (2,437,492) - - - - - - 24,148 24,156 - - 111,922 24,380 (1,615,000) - (3,245,000) (1,210,000) - - (1,590,852) 9,580,466 (3,145,000) 15,159,721 3,741,346 6,145,354 (311,062)$ 6,101,879$ (6,835,837)$ 10,128,290$ (1,340,174)$ 2,958,520$ 24.4% 20.4% 20.1% 14.5% 27.9% 21.3% Fiscal Year CITY OF STILLWATER, MINNESOTA ASSESSED AND ESTIMATED ACTUAL VALUE OF PROPERTY LAST TEN FISCAL YEARS 127 Real Property Personal Property Total Estimated Estimated Actual Taxable Actual Taxable Payable Market Net Tax Market Net Tax Year Value Capacity (1)Value Capacity 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 2011 1,935,436,400 22,220,835 10,988,300 218,266 2012 1,797,892,100 20,693,282 11,884,300 234,436 2013 1,655,331,600 19,160,846 12,681,500 250,880 2014 1,657,537,400 19,181,004 12,725,100 251,952 2015 1,898,305,000 21,556,350 12,880,700 255,814 2016 1,992,003,200 22,491,740 13,493,000 268,060 2017 2,036,773,900 23,097,759 14,165,600 281,512 2018 2,208,179,800 25,003,238 14,998,700 298,174 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. 128 Total Estimated Net Tax Capacity Actual Taxable as a Percentage Market Net Tax Total Direct of Estimated Actual Value Capacity Tax Rate Market Value 2,131,296,700$ 24,359,094$ 48.186 1.14 % 2,071,120,000 23,715,529 47.930 1.15 1,946,424,700 22,439,101 49.493 1.15 1,809,776,400 20,927,718 49.493 1.16 1,668,013,100 19,411,726 54.674 1.16 1,670,262,500 19,432,956 61.503 1.16 1,911,185,700 21,812,164 58.359 1.14 2,005,496,200 22,759,800 57.016 1.13 2,050,939,500 23,379,271 56.927 1.14 2,223,178,500 25,301,412 53.420 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 129 Overlapping Rates Overlapping Rates City Direct Rates County Debt Debt Operating Service Total Operating Service Total Tax Tax Tax Tax Tax Tax Payable Capacity Capacity Capacity Capacity Capacity Capacity Year Rate Rate Rate Rate Rate Rate 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 2011 32.921 16.572 49.493 23.989 3.261 27.250 2012 38.079 16.595 54.674 25.539 3.717 29.256 2013 43.941 17.562 61.503 27.496 3.716 31.212 2014 41.777 16.582 58.359 25.780 4.319 30.099 2015 37.737 17.179 54.916 23.626 3.821 27.447 2016 39.646 17.370 57.016 23.832 3.979 27.811 2017 40.235 16.691 56.927 23.777 4.015 27.792 2018 39.093 14.327 53.420 23.395 3.895 27.290 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. 130 Overlapping Rates School Other Debt Operating Service Total Total Total Tax Tax Tax Tax Tax Capacity Capacity Capacity Capacity Capacity Rate Rate Rate Rate Rate 8.881 8.833 17.714 7.617 97.374 10.367 9.367 19.734 8.045 102.836 10.457 9.843 20.300 8.045 105.088 11.643 10.690 22.333 4.419 110.682 11.328 10.690 22.018 4.857 119.590 12.661 10.489 23.150 4.641 116.249 11.183 9.941 21.124 4.183 107.670 15.051 4.798 19.849 4.568 109.244 15.381 5.009 20.390 4.345 109.454 14.317 5.032 19.349 4.175 104.234 CITY OF STILLWATER, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS 131 Collected within the Taxes Levied for the Fiscal Year Fiscal Year of Levy Total Collections to Date Current Percentage Collections Fiscal Operating Debt Total Tax Tax of in Subsequent Year Tax Levy Tax Levy Levy Collection Levy Years 2009 6,813,230$ 3,286,539$ 10,099,769$ 9,768,614$ 96.7 305,437$ 2010 6,725,032 3,385,158 10,110,190 9,466,734 93.6 205,442 2011 6,943,172 3,215,195 10,158,367 9,494,564 93.5 162,455 2012 7,136,531 3,110,066 10,246,597 10,038,924 98.0 154,346 2013 7,435,010 2,971,497 10,406,507 10,208,530 98.1 174,416 2014 7,606,066 3,018,920 10,624,986 10,498,732 98.8 96,874 2015 7,825,610 3,545,643 11,371,253 11,260,937 99.0 98,552 2016 8,365,422 3,706,945 12,072,367 11,973,407 99.2 83,132 2017 8,857,823 3,716,516 12,574,339 12,512,313 99.5 41,919 2018 9,379,459 3,480,056 12,859,515 12,793,360 99.5 - Notes: (1) Beginning with payable 2012, the MVHC program was discontinued. 132 Total Collections to Date Total Percentage Abatements MVHC Outstanding Percentage Tax of to Total Collection Delinquent of Levy Collection Levy Tax Levy Unallotment (1)Taxes Outstanding 10,074,051$ 99.7 24,469$ -$ 1,249$ 0.0 % 9,672,176 95.7 59,616 376,896 1,502 0.0 9,657,019 95.1 56,704 435,787 8,857 0.1 10,193,270 99.5 48,887 N/A 4,440 0.0 10,382,946 99.8 22,600 N/A 961 0.0 10,595,606 99.7 27,844 N/A 1,536 0.0 11,359,489 99.9 8,817 N/A 2,947 0.0 12,056,539 99.9 4,567 N/A 11,261 0.1 12,554,232 99.8 - N/A 20,107 0.2 12,793,360 99.5 762 N/A 65,393 0.5 CITY OF STILLWATER, MINNESOTA PRINCIPAL TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 133 2018 2009 Percentage Percentage of Total of Total Net Tax City Tax Net Tax City Tax Taxpayer Capacity Rank Capacity Capacity Rank Capacity Stillwater Health System 373,596$ 1 1.477 %257,642$ 1 1.060 % Xcel Energy 292,774 2 1.157 197,826 2 0.810 Dayton Hudson 179,210 3 0.708 170,192 3 0.700 Valley Ridge Holding LLC 165,204 4 0.653 0.000 Supervalu Holdings 155,990 5 0.617 163,334 4 0.670 Diasorin Inc 126,526 6 0.500 119,758 7 0.490 Stillwater MP I LLC 117,884 7 0.466 102,810 10 0.420 Stillwater MP II LLC 109,334 8 0.432 0.000 Curve Crest Professional 106,818 9 0.422 0.000 Mikden of Stillwater LLC 101,252 10 0.400 121,468 6 0.500 Four Star Land Development 0.000 185,221 5 0.760 Gen3 LLC 0.000 113,868 8 0.470 Southmetro Centers 0.000 108,492 9 0.450 Total 1,728,588$ 6.832 %1,540,611$ 6.330 % Source: Washington County, Minnesota Auditor's Office THIS PAGE IS INTENTIONALLY LEFT BLANK CITY OF STILLWATER, MINNESOTA RATIO OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS 134 Governmental Activities GO GO GO GO Tax General Improvement Revenue Tax Increment Fiscal Government Bonds Bonds Increment Revenue Capital Year Bonds (1) (2)(1) (3)(1) (4)Bonds (1) (5)Bonds (5)Lease 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 2011 14,385,000 2,375,000 2,695,000 4,910,000 -32,346 2012 18,645,000 2,000,000 2,390,000 4,790,000 -22,108 2013 16,730,000 - 2,075,000 4,655,000 -10,773 2014 23,835,000 - 1,755,000 4,500,000 -- 2015 18,630,000 - 1,420,000 4,325,000 -- 2016 21,655,000 - 1,065,000 6,585,000 6,585,000 - 2017 21,755,000 - 465,000 6,375,000 6,175,000 - 2018 25,425,000 - 315,000 6,150,000 5,790,000 - 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 135 for personal income and population data. (8) Information not available is labeled N/A. 135 Governmental Activities Other Total Percentage Long-Term Bond Primary of Personal Per Debt Premium Government Income (6) (7) (8)Capita (7) (8) 462,500$ 307,628$ 38,116,452$ 22.11 2,091$ 267,500 274,810 29,189,387 29.47 1,587 127,500 244,293 24,769,139 36.68 1,340 42,500 357,317 28,246,925 34.35 1,496 - 318,125 23,788,898 41.38 1,254 - 492,104 30,582,104 33.26 1,612 - 445,032 24,820,032 46.29 1,314 - 1,185,624 37,075,624 27.65 1,877 - 1,208,622 35,978,622 34.95 1,822 - 1,289,697 38,969,697 N/A 1,957 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 136 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) 2009 23,062,628$ 8,054,476$ 15,008,152$ 0.7 823.04$ 2010 16,879,810 4,002,069 12,877,741 0.7 706.60 2011 14,629,293 3,784,323 10,844,970 0.6 592.65 2012 19,002,317 8,712,238 10,290,079 0.6 552.10 2013 17,048,125 7,481,997 9,566,128 0.6 505.96 2014 24,327,104 4,437,291 19,889,813 1.0 1,052.82 2015 19,075,032 5,938,539 13,136,493 0.7 665.00 2016 22,840,624 10,197,146 12,643,478 0.6 642.03 2017 22,963,622 8,969,528 13,994,094 0.6 708.63 2018 26,714,697 9,492,662 17,222,035 0.8 864.78 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, as determined in Note (1) above. (3)See Assessed and Estimated Actual Value of Property schedule on page 122 for property value data. (4)Amount of in Debt Service Fund does not equal the amount of net position restricted for debt payments due to reducing that figure by the amount of accrued interest due and increasing by the amount of unearned revenue related to the Debt Service Funds. (5)See the Demographic and Economic Statistics schedule on page 139 for population data. CITY OF STILLWATER, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2018 137 Net Percentage Amount Debt Applicable Applicable Outstanding to City (2)to City Direct: City of Stillwater 38,969,697$ 100%38,969,697$ Overlapping: Washington County 126,060,000 (1)8.2%10,336,920 School Districts: #834-Stillwater 104,900,000 (1)23.8%24,966,200 Washington County HRA 49,947,976 (1)7.3%3,646,202 Metropolitan Council/Regional Transit 1,484,236,308 (1)9.1%135,065,504 Total Overlapping 174,014,826 Total Direct and Overlapping Bonded Debt:212,984,523$ 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. CITY OF STILLWATER, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN LAST TEN FISCAL YEARS 138 2009 2010 2011 2012 Estimated Market Value (1)2,152,848,700$ 2,071,120,000$ 1,951,589,800$ 1,893,734,000$ Debt limitation (2)64,585,461 62,133,600 58,547,694 56,812,020 Debt applicable to limit: Total bonded debt 37,808,824 28,914,577 24,524,846 27,889,608 Less: GO Improvement bonds (3,120,000) (2,750,000) (2,375,000) (2,000,000) Less: GO Revenue bonds (4,835,000) (3,090,000) (2,695,000) (2,390,000) Less: GO TIF bonds (6,585,000) (6,160,000) (4,910,000) (4,790,000) Less: TIF Revenue bonds - - - - Total debt applicable to limitation 23,268,824 16,914,577 14,544,846 18,709,608 Legal debt margin 41,316,637$ 45,219,023$ 44,002,848$ 38,102,412$ Total debt applicable to the limit as a percentage of debt limit 36.03%27.22%24.84%32.93% 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%. Fiscal Year 139 Fiscal Year 2013 2014 2015 2016 2017 2018 1,772,578,900$ 1,774,367,400$ 2,002,273,500$ 2,093,975,600$ 2,137,240,800$ 2,305,780,800$ 53,177,367 53,231,022 60,068,205 62,819,268 64,117,224 69,173,424 23,470,773 30,090,000 24,375,000 35,890,000 34,770,000 37,680,000 - - - - - - (2,075,000) (1,755,000) (1,420,000) (1,065,000) (465,000) (315,000) (4,655,000) (4,500,000) (4,325,000) (6,585,000) (6,375,000) (6,150,000) - - - (6,585,000) (6,175,000) (5,790,000) 16,740,773 23,835,000 18,630,000 21,655,000 21,755,000 25,425,000 36,436,594$ 29,396,022$ 41,438,205$ 41,164,268$ 42,362,224$ 43,748,424$ 31.48%44.78%31.01%34.47%33.93%36.76% CITY OF STILLWATER, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS 140 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) 2009 18,235 842,603$ 10,776,352$ 46,208$ 7.4 2010 18,225 860,220 11,240,061 47,200 6.7 2011 18,299 908,619 11,948,856 49,654 6.3 2012 18,638 970,257 12,657,651 52,058 4.9 2013 18,907 984,298 12,838,180 52,060 4.9 2014 18,892 1,017,013 13,419,583 53,833 3.6 2015 19,754 1,148,952 14,633,536 58,163 3.7 2016 19,693 1,025,218 13,177,844 52,060 3.6 2017 19,748 1,257,572 16,324,416 63,681 2.8 2018 19,915 NA N/A NA 3.4 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. CITY OF STILLWATER, MINNESOTA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 141 2018 2009 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment County of Washington 1,235 1 25.8%970 1 21.5% Stillwater Public Schools 1,115 2 23.3%920 2 20.4% Lakeview Memorial Hospital 868 3 18.1%250 5 5.6% Stillwater Medical Group 330 4 6.9% DiaSorin Inc.318 5 6.6%250 7 5.6% Target 233 6 4.9%197 8 4.4% St. Croix Boat & packet Co.230 7 4.8% Cub Foods 165 8 3.4%550 4 12.2% City of Stillwater 164 9 3.4%186 9 4.1% Modernistic Inc.130 10 2.7% UFE, Inc 800 3 17.8% Desing Fabricated Parts 330 6 7.3% WR Medical Electronics 50 10 1.1% Total 4,788 99.9%4503 100.0% Source: Minnesota Department of Employment and Economic Development CITY OF STILLWATER, MINNESOTA FULL TIME EQUIVALENTS CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 142 FUNCTION/PROGRAM 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 General Government MIS 1.80 1.80 1.80 1.80 1.80 1.80 2.80 2.80 2.80 2.80 Finance 3.50 3.50 3.50 3.50 3.50 3.50 3.70 3.70 3.55 4.50 Human Resources 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.15 1.30 Administration 3.90 3.45 3.45 3.45 3.40 3.40 3.70 3.70 3.70 4.60 Legal/City Attorney 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 Plant/City Hall 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.50 Community Development 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 3.75 3.00 Public Safety Police 22.75 22.75 22.75 23.75 23.75 24.75 24.75 25.00 26.00 25.00 Fire 8.25 8.25 8.25 9.25 11.25 11.25 11.25 11.50 11.50 11.75 Inspections 2.50 2.50 2.50 2.50 2.50 3.00 3.00 3.00 3.50 4.00 Public Works Engineering 3.35 3.35 3.35 2.85 2.75 2.75 2.75 2.75 2.75 2.75 Streets 6.75 6.75 6.75 6.75 6.75 6.50 6.75 6.75 5.75 6.75 Culture & Recreation Library 10.95 11.20 11.20 11.70 11.70 11.70 12.35 13.23 10.95 11.70 Parks 7.25 7.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25 Sanitary Sewer 3.95 3.95 3.95 3.70 3.95 3.20 3.95 3.95 3.95 3.95 Storm Sewer 2.95 2.95 2.95 1.70 2.85 2.85 2.85 2.85 2.85 2.85 Signs & Lighting 1.25 1.25 1.25 1.25 0.95 0.95 0.95 0.95 0.95 0.95 Parking 1.10 1.05 1.05 1.05 1.10 1.10 1.10 1.10 1.10 1.10 Total 83.75 83.50 82.50 83.00 86.00 86.50 89.65 91.03 91.50 94.75 Source: City Finance Department CITY OF STILLWATER, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 143 Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 9 9 9 10 10 13 13 13 13 13 Fire Stations 1 1 1 1 1 1 1 1 1 1 Fire Trucks 9 10 10 12 13 13 13 13 12 12 Fire Boat N/A N/A N/A N/A 1 1 1 1 1 1 Rescue Dispatch N/A 1 1 1 1 1 1 1 1 1 Special Ops Trailer 1 1 1 1 1 1 1 1 1 2 Public Works Lights 1,415 1,356 1,356 1,356 1,331 1330 1,332 1,337 1,643 1,643 Vehicles 29 30 30 30 31 32 30 28 32 32 Streets (miles)89.70 89.70 89.70 89.70 89.70 90.24 91.28 91.28 99.98 100.64 Sidewalks (miles)N/A N/A N/A N/A N/A N/A N/A N/A 61.35 61.35 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 3 3 1 1 Library Building 1 1 1 1 1 1 1 1 1 1 Parks Parks 34 34 34 34 34 34 36 36 40 40 Internal Trails 14.8 19 19.2 19.2 19.2 19.2 19.81 19.81 N/A N/A Paved Trails N/A N/A N/A N/A N/A N/A N/A N/A 15.97 16 Natural Trails N/A N/A N/A N/A N/A N/A N/A N/A 6.17 6 Park Acres 570 576 576 576 576 576 583 583 614 614 Park Shelters 23 30 30 30 30 30 28 28 28 28 Basketball Courts 6 5 5 5 3 3 5 5 5 5 Boat Launches 1 1 1 1 1 2 2 2 2 2 Fishing Pier 1 1 1 1 1 1 1 1 2 2 Horseshoe Courts 11 11 11 11 11 11 11 11 11 11 Skating Rinks 7 8 9 12 12 11 7 7 7 7 Soccer Fields 6 7 7 7 7 7 13 13 6 6 Softball Fields 11 13 13 12 12 12 6 6 13 13 Swimming Beach 1 1 1 1 1 1 0 0 0 0 Tennis Courts 12 12 12 11 11 11 11 11 11 11 Volleyball Courts 5 4 4 4 4 4 4 4 4 4 Bathroom Facilities 4 5 6 6 6 6 7 7 7 6 Sanitary Sewer Collection System (miles)87.65 87.85 88.06 88.22 89.13 89.13 89.13 89.13 90.99 92.29 Sewer Connections 5,971 6,289 6,344 6,380 6,414 6,466 6,495 6,495 6,554 6,573 Lift Stations 13 13 13 13 13 13 13 13 13 13 Storm Sewer Pipe (miles)80.80 78.30 78.50 78.65 79.61 79.61 79.61 79.61 81.03 81.96 Parking Paylots/Permit Parking 9 9 9 9 9 9 9 9 9 11 Parking Ramp 0 1 1 1 1 1 1 1 1 1 Source: Various City Departments CITY OF STILLWATER, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 144 Fiscal Year Fiscal Year Function/Program 2009 2010 2011 2012 2013 General Government Elections - 2 - 2 - Registered voters - 12,607 - 13,650 - Number of votes cast - 8,802 - 11,232 - Voter participation (registered)0.0%0.70 0.0%0.82 0.0% Public Safety Police Part I Offenses 737 844 732 706 632 Part II Offenses 1,089 1,314 997 975 801 Part III, IV & V Offenses 8,990 9,173 8,050 8,146 8,314 Traffic Violations 2,884 2,406 2,236 1,971 2,219 Fire Medical 656 788 749 1,052 1,118 Fire 55 76 74 60 50 False Alarm 95 157 136 125 135 Inspections 455 526 514 531 545 Other Services 213 280 204 212 151 Miscellaneous N/A 285 220 305 247 Inspections Building Permits 1,126 1,086 1,206 1,055 1,105 Inspections 2,868 2,758 3,152 2,839 2,748 Value of Building Permits $38,071,294 $24,610,152 $32,152,097 $24,359,462 $21,252,468 Public Works General Maintenance (hours)13,130 13,407 12,641 17,986 12,827 Trash Pickup (hours)1,876 1,856 1,579 1,742 1,641 Snow Removal (hours)5,374 5,189 3,516 2,361 5,943 New Construction (hours)204 119 198 1,133 497 Culture and Recreation St Croix Valley Recreation Center Recreation Center - (hours)3,989 3,386 4,637 3,002 2,900 Fieldhouse - (hours)1,185 2,102 1,048 961 1,295 Lily Lake - (hours)1,052 1,277 1,436 1,283 1,188 Recreation Maintenance (hours)7,761 6,995 6,955 6,427 6,132 Library Collection Size 99,341 96,536 99,985 106,804 106,162 Circulation (checked out)344,948 333,260 322,441 313,193 327,482 Internet Sessions N/A N/A 32,485 27,949 23,734 Program Attendance N/A N/A 5,383 5,933 6,260 Parks Park Reservations 232 242 247 232 246 Park Maintenance (hours)7,916 5,784 5,564 6,798 5,666 Sanitary Sewer Sewer Work (hours)3,499 2,894 2,760 1,330 2,702 Parking Monthly Parking Permits 3,300 2,890 3,744 3,239 3,262 Source: Various City Departments Notes: Information not available is labeled N/A. 145 Fiscal Year 2014 2015 2016 2017 2018 2 - 2 - 2 12,284 - 13,829 - 13,454 8,107 - 11,814 - 10,697 0.61 0.0% 84.6% 0.0% 79.5% 492 533 460 458 460 785 1,106 1,054 1,260 1,042 8,503 8,656 9,255 9,115 8,689 2,908 2,294 2,022 1,995 2,326 1,138 1,266 1,354 1,383 1,175 45 82 45 63 65 151 133 155 149 127 509 149 295 272 700 209 170 128 151 244 272 187 144 167 189 1,230 1,504 1,233 2,193 2,236 3,060 3,075 2,921 4,123 6,038 $37,808,545 $42,679,109 $33,610,517 $61,434,729 $89,160,498 12,571 16,450 14,318 14,580 1,771 1,525 1,795 2,260 2,076 1,927 4,568 2,154 2,704 2,409 4,860 661 474 252 92 853 3,487 3,197 4,788 5,292 5,054 1,438 1,434 982 1,095 1,457 926 915 1,239 1,054 1,843 6,619 6,168 6,019 6,340 7,581 101,882 102,089 91,140 93,720 90,343 325,920 320,921 324,370 337,627 323,876 20,391 25,064 24,364 14,300 13,602 7,441 8,737 9,029 9,369 11,960 235 215 240 208 244 5,586 9,078 8,765 8,131 11,343 1,268 2,723 2,624 2,807 4,174 3,984 6,150 5,783 5,807 9,365 OTHER REPORTS SECTION 146 INDEPENDENT AUDITORS’ REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and Members of the City Council City of Stillwater Stillwater, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, 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, Minnesota (the City) as of December 31, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents and have issued our report thereon dated June 26, 2019. The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat §6.65, contains 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 audit considered all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City’s noncompliance with the above-referenced provisions. The purpose of this report is solely to describe the scope of our testing related to the provisions of the Minnesota Legal Compliance Guide for Cities and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Minneapolis, Minnesota June 26, 2019 216 4th Street N, Stillwater, MN 55082 651‐430‐8800 www.ci.stillwater.mn.us CITY COUNCIL MEETING MINUTES July 16, 2019 REGULAR MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:01 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker, Weidner and Polehna Absent: None Staff present: City Administrator McCarty City Attorney Land Police Chief Gannaway Fire Chief Glaser Public Works Director Sanders Community Development Director Turnblad Finance Director Provos Library Director Troendle City Clerk Wolf PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Proclamation Mitch Reinke, Stanley Cup Councilmember Polehna stated that the Stanley Cup will be coming to the St. Croix Valley Rec Center on July 22. He read a proclamation designating July 22, 2019 as Mitch Reinke Day. Mr. Reinke was a member of the National Hockey League St. Louis Blues that won the 2019 Stanley Cup. Mr. Reinke stated he was honored and humbled to receive the recognition. Presentation of Human Rights Award to Melanie Ebertz Mayor Kozlowski read the proclamation and presented the Human Rights Award to Melanie Ebertz, a founding member of Fundacion Comunidad, which works with indigenous people in the Peruvian highland region of Ayacucho, whose lives and communities were decimated by the Shining Path terrorist group. Ms. Ebertz acknowledged that the Stillwater community has been very hospitable to her guests from the Andes over the years. She introduced Wilbur Quispe, who has been visiting Stillwater from Peru every summer since 2003. Ms. Ebertz translated as Mr. Quispe thanked the community and Fundacion Comunidad for the support received during the most difficult times. He sang a song in his native Quechua language. City Council Meeting July 16, 2019 Page 2 of 7 Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt Resolution 2019‐079, Stillwater Human Rights Award ‐ Melanie Ebertz. All in favor. Certificate of Appreciation for Contributions to the 4th of July Fireworks from: Margaret Rivers Fund, Sabes Family Foundation, Water Street Inn, St. Croix Boat & Packet, City Sliquors and Rivertown Inn Mayor Kozlowski recognized sponsors of the July 4th fireworks. OPEN FORUM Cameron Murray, 350 Main Street North, suggested several options for addressing the issue of cigarette butt litter. He stated several groups want to help with the problem. He asked the Council to consider installing ash receptacles, incorporating cigarette litter disposal in the nuisance ordinance, sweeping the streets in the early morning, and promoting litter education. Public Works Director Sanders stated staff can look at possible locations for ash receptacles and consider sweeping two days a week. Sheila Maybanks of the GreenStep Cities Committee acknowledged it has been a year since Stillwater became a GreenStep City. They hope to work with the Planning Department to implement some of the priorities. They will be part of the Lumberjack Days Parade. Douglas Jahnke, 1024 North Second Street, complained about receiving a ticket on his truck because it was not moved in 24‐hours. He asked the purpose of the 24‐hour parking rule; and Mayor Kozlowski replied it was complaint driven; and Police Chief Gannaway added that almost every city has a 24‐hour parking ordinance requiring people to move their cars to prevent junk or inoperable cars being left on the street. Mr. Jahnke expressed his extreme dissatisfaction with the ordinance. He would like it changed. Mayor Kozlowski stated the Council will be starting a parking study soon and will review it. Ms. Tadow, a resident of Minneapolis, stated she would like to discuss the subject of Ralph Bell. She stated she is uncomfortable giving her name and addre ss because she does not feel safe in Stillwater. Mayor Kozlowski asked Police Chief Gannaway to summarize the case. Police Chief Gannaway stated that Ralph Bell did not return home on December 20. His car was found in Roseville with the doors open and the car running. Stillwater Police started a missing persons investigation immediately. One investigator was assigned full time to the investigation and he worked continually till February 1. The other investigators got fully involved. Nine search warrants were served, to include bank, car, social media, electronic, and apartment. Police did several searches of the immediate area and kept the Roseville Police Department apprised. The Fire Department searched the frozen river with a hovercraft and an airboat. Searches were conducted in Minneapolis, St. Paul, Stillwater, Hopkins, Roseville, Blaine, Rochester and Duluth. Forty‐five people were interviewed and 70 interviews were conducted overall. Mr. Bell was found in Roseville, so Roseville so is the jurisdiction in charge of the investigation. The Bureau of Criminal Apprehension, a statewide investigative agency, helped with the warrants. City Council Meeting July 16, 2019 Page 3 of 7 Ms. Tadow expressed concern that no one searched for Mr. Bell until six days after he went missing; and Chief Gannaway responded that the sergeant handling the call was the investigative sergeant. The Police Department did a full search from the start, but an investigator was not assigned full time until six days later. He stated that handling of a missing persons report depends on the circumstances. When there is no concrete information, police may wait a little while to see if the person turns up. Audience members made inaudible comments. Ms. Tadow stated, since Mr. Bell was a resident of Stillwater, why is the Stillwater Police Department done with the case? Chief Gannaway responded if the Police Department gets new information, officers will follow up on it immediately. The lead investigator is in constant communication with Roseville Police. Kaila, Oakdale, speaking on behalf of Ralph Bell, stated that a missing persons report should be taken seriously immediately. She would like to ask the responding officer why he smirked and told her Mr. Bell was probably just out somewhere. She stated that the Stillwater Police Department would not approve the use of search dogs, which may have found Mr. Bell earlier or saved him. Isabella Taylor, Mr. Bell’s sister, River Falls, Wisconsin, pointed out that her brother had never been to jail nor had any altercation with the police. She feels his case was not taken seriously and justice was not served. Corhea Taylor, Mr. Bell’s mother, St. Paul, stated the missing person report was not taken seriously. Police did not accompany the family on any searches and she feels they did not believe her son was missing. Amanda Som Stewart, St Paul, applauded the bravery of Mr. Bell’s family. She stated the case deserves more information, more communication and more resources to determine what happened to Mr. Bell. Autumn Jacobson, St. Paul, Mr. Bell’s cousin, stated she wished there had been police involved in the search efforts. The family led three to five searches for Mr. Bell without police assistance. Casey Kelly, 1635 South Greeley Street, Mr. Bell’s neighbor, stated Mr. Bell was murdered. He had two young daughters and a son on the way. He was always happy and she feels he did not take his own life. Mayor Kozlowski voiced sorrow for Mr. Bell’s family and stated Mr. Bell seemed like a wonderful person. He trusts the Chief of Police. He wondered if the community response would have been different had there been a different picture on the flyer. He expressed his willingness to assist Mr. Bell’s family to make sure they get the help they need. STAFF REPORTS Police Chief Gannaway informed the Council the Department is ready for Lumberjack Days. Fire Chief Glaser stated car seat clinics will take place tomorrow, August 15 and September 22. City Council Meeting July 16, 2019 Page 4 of 7 City Clerk Wolf reminded the Council that the August 6 meeting will be moved to July 30 (7 p.m. meeting only) due to Night to Unite. The August 20 meeting will start at 3:30 with a budget workshop. There may be another budget workshop August 27 if needed. City Administrator McCarty reiterated that the budget process is underway. Library Director Troendle informed the Council of upcoming library programs. CONSENT AGENDA July 2, 2019 regular and recessed meeting minutes Payment of Bills Sanitary Sewer Adjustments Amend Purchasing Policy John Deere Tractor Purchase Motion by Councilmember Weidner, seconded by Councilmember Collins, to adopt the Consent Agenda. All in favor. PUBLIC HEARINGS There were no public hearings. UNFINISHED BUSINESS Sale of General Obligation Capital Outlay Bonds, Series 2019A Finance Director Provos presented the resolution. Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt Resolution 2019‐080, resolution providing for the competitive negotiated sale of $3,065,000 General Obligation Capital Outlay Bonds, Series 2019A. All in favor. Strategic Planning report City Administrator McCarty summarized results of the June 20 Strategic Planning Workshop. Motion by Councilmember Polehna, seconded by Councilmember Collins, to approve the updated Strategic Plan. All in favor. CPC Case No. 2019‐33 to consider an amendment to City Code Section 41‐8, Subd. 11(3) to increase the number of Type C Short Term Home Rental Licenses. Community Development Director Turnblad stated the first reading was approved on a 3‐2 vote. There are no changes. Motion by Councilmember Junker, seconded by Councilmember Collins, to adopt Ordinance No. 1130, an ordinance amending the Stillwater City Code Sec. 41‐8, Short Term Home Rental Regulations. Motion passed Ayes: Councilmembers Collins, Junker and Mayor Kozlowski Nays: Councilmembers Weidner and Polehna City Council Meeting July 16, 2019 Page 5 of 7 NEW BUSINESS St. Croix Riverwalk Easement Public Works Director Sanders explained that there are two parcels of land along the St. Croix River Riverbank Restoration and Riverwalk Project that are not owned by the City. Staff and the City Attorney have worked with the property owner to obtain a construction easement and permanent easement for the project. Motion by Councilmember Junker, seconded by Councilmember Collins, to approve the temporary construction easement and permanent easement agreement. All in favor. Public Works Operational Review Contract City Administrator McCarty reported that the 2019 budget included funds to complete an operational review of the Public Works Department, including the Board of Water Commissioners operations and the St. Croix Valley Recreation Center operations. A Request for Proposals (RFP) generated five responses. The evaluation team recommends approval of the proposal and award of the contract to GovHR USA, LLC. The base cost of the study is $24,050, which is within the budgeted appropriation. The anticipated timeline is three months. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt Resolution 2019‐081, approving proposal and awarding contract for City of Stillwater operational review of Public Works Department, including Board of Water Commissioners operations and St. Croix Valley Recreation Center operations, to GovHR USA, LLC. All in favor. CGI Agreement City Administrator McCarty requested that the Council approve an amendment to the continued partnership with CGI Communications, Inc. to create a series of professionally produced online videos to highlight what the community offers residents, visitors, and business owners. There is no cost to the City for the video clips, which will be on the City web site. Mayor Kozlowski pointed out that all the sponsors are from Hudson. He would like to get some statistics on how many viewers they are generating. He would like to consider incorporating video instead from Discover Stillwater. City Administrator McCarty stated he can do analytics on how many hits this part of the web site generates. Resubdivision of 1422 Martha Street North Mayor Kozlowski noted this has been tabled at the applicant’s request. CLOSED SESSION Motion by Councilmember Junker, seconded by Councilmember Collins, to recess to Closed Session, pursuant to Minn. Stat. §13D.05 subd. 3(b), to discuss attorney‐client privileged communication regarding 121 Chestnut Street East. All in favor. The meeting was recessed to closed session at 8:34 p.m. City Council Meeting July 16, 2019 Page 6 of 7 Present: Mayor Kozlowski, Councilmembers Collins, Junker, Weidner and Polehna. Also present: City Administrator McCarty, City Attorney Land, Attorney P. Mikael, and Community Development Director Bill Turnblad. Motion by Councilmember Collins seconded by Councilmember Junker to re‐open the meeting. Motion by Councilmember Junker, seconded by Councilmember Polehna, to recess to Closed Session pursuant to Minn. Stat. §13D.05 subd. 3(b) to discuss attorney‐client privileged communication regarding 106 Chestnut Street East. All in favor. The meeting was recessed to closed session at 8:56 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker, Weidner and Polehna. Also present: City Administrator McCarty, City Attorney Land, Attorney P. Mikael, and Community Development Director Bill Turnblad. Motion by Councilmember Junker seconded by Councilmember Polehna to re‐open the meeting. COUNCIL REQUEST ITEMS Motion by Councilmember Polehna, seconded by Councilmember Weidner, to suspend Robert’s Rules of Order. All in favor Motion by Councilmember Weidner, seconded by Councilmember Polehna, to bring the Historic Armory Conditional use permit back on the table for reconsideration. All in favor. Consideration of Approving a Site Review Conditional Use Permit for the Historic Armory at 107 Chestnut Street East ‐ Resolution Motion by Councilmember Collins, seconded by Councilmember Polehna, to adopt Resolution 2019‐082, a resolution approving a site review conditional use permit f or the Historic Armory at 107 Chestnut Street East. All in favor. Consideration of Approving Settlement Agreement, including the Purchase and Leaseback of a Portion of the Historic Armory Site at 107 Chestnut Street East – Resolution Motion by Councilmember Weidner seconded by Councilmember Polehna to reject the Settlement Agreement, including the purchase and leaseback of a portion of the Historic Armory Site at 107 Chestnut Street East. All in favor. ADJOURNMENT Motion by Councilmember Junker seconded by Councilmember Collins to adjourn. All in favor. The meeting was adjourned at 9:19 p.m. Ted Kozlowski, Mayor ATTEST: Beth Wolf, City Clerk City Council Meeting July 16, 2019 Page 7 of 7 Resolution 2019‐079, Stillwater Human Rights Award ‐ Melanie Ebertz Resolution 2019‐080, resolution providing for the competitive negotiated sale of $3,065,000 General Obligation Capital Outlay Bonds, Series 2019A Resolution 2019‐081, approving proposal and awarding contract for City of Stillwater operational review of Public Works Department, including Board of Water Commissioners operations and St. Croix Valley Recreation Center operations, to GovHR USA, LLC Resolution 2019‐082, a resolution approving a site review Conditional Use Permit for the Historic Armory at 107 Chestnut Street East Ordinance No. 1130, an ordinance amending the Stillwater City Code Sec. 41‐8, Short Term Home Rental Regulations Page 1 LIST OF BILLS Abrahamson Nurseries Landscaping at Myrtle from Interlachen 2,190.00 Advance Auto Parts Supplies 5.95 Advanced Sportswear Polos with logo 49.99 Amdahl Locksmith Inc Chris Lock service 110.00 AMI Consulting Engineers PA Riverbank stabilization 39,807.20 Ancom Technical Center Service 700.10 Aspen Mills Uniforms 245.95 AutoNation Vehicle service 57.81 BHE Community Solar Solar Energy 6,321.34 Brines Market Meals LJD 397.34 Brownells Inc Equipment repair supplies 187.78 CDW Government Inc. Label maker 94.54 Cintas Corporation Mat cleaning service 356.28 Clear Title LLC Tr Acct UB Refund 61.20 Comcast Internet 134.90 Coverall of the Twin Cities Commercial cleaning services 540.00 Dalco Janitorial supplies 241.33 Dogpoopbags.com Dog clean up bags 130.00 Dynamic Fire Protection City Hall Project 520.00 ECM Publishers Publications 104.50 Emergency Automotive Vehicle equipment 10,389.50 Emergency Medical Products Heartstart batteries 1,036.60 Emergency Response Solutions Shipping 12.07 Finwall Shann Reimburse for Technology 599.00 Fury Motors Vehicle service 43.19 Grainger Supplies 575.21 Group Medicareblue RX Retiree Prescriptions Ins 2,569.00 Integrity Land Development Inc Neal Ave road & right of way 60,548.99 Jefferson Fire and Safety Inc. Equipment repair supplies 156.30 Johnson Katherine Refund of Aug & Sept Parking Permit 40.00 Junker Brad Reimburse for meals 84.48 Kraske Mark or Patricia Reimburse for parking ticket over payment 5.00 Lakeview Hospital Legal blood draws 50.00 League of MN Cities Workers Comp Claim 1,735.89 Madden Galanter Hansen LLP Labor Relations Services 192.00 Menards Supplies 2,021.14 Meredith Nathan Reimburse for tip to Brines delivery driver 25.00 NAC Mechanical and Electrical Services City Hall Project 4,985.10 NAPA Auto Parts Auto maint supplies 4.79 Office Depot Office supplies 133.80 Pasket Dennis Reimburse for meals 9.53 Performance Plus LLC Drug screen 135.00 Pioneer Press St. Paul Notice of public hearing 12.04 Pro‐Tec Design Boutwell gate 190.00 Pullen Annette Marie Therapy 180.00 Quill Corporation Office supplies 114.91 RES Specialty Pyrotechnics Inc. Fireworks 7/4/2019 48,800.00 River Valley Printing Inc. Door hangers 342.00 Page 2 Robole Donna Reimburse for HR office supplies 56.78 Roush Jim Reimburse for CPR class 34.00 Saint Johns University Housing for training 500.00 Sams Marine Inc Vehicle repair charges 772.04 SRF Consulting Group ADA transition plan & study 1,396.84 St. Croix Boat and Packet Co. Ramp cleaning 810.00 Stillwater Motor Company Vehicle service 46.74 Streichers 12 Gauge bean bag round 451.99 The Foundation Labor 262.50 TKK Electronics Mobile data computers 8,814.84 Uline Inc Supplies 1,057.57 Valley Trophy Inc. Name plate 15.00 Verizon Wireless Wireless Service 2,322.01 Young Dan Reimburse for expenses 140.11 Zimmerman Bryan Park Fee Refund 135.00 REC CENTER Advanced Sportswear Uniforms 15.00 Braun Intertec Corporation Dome Project 1,439.00 Cintas Corporation Mat cleaning service 154.50 Coca‐Cola Distribution Beverages for concessions 644.88 Comcast TV Internet & Voice 373.65 Grainger Equipment repair supplies 121.30 Hodges Badge Co Inc Empire 3 8" Str 915.30 Ice Skating Institute Skater member 3,090.00 Kraus‐Anderson Dome Project 48,227.19 Lindstrom Solar LLC Solar Energy 7,907.74 Menards Supplies 211.79 Riedell Shoes Inc. Skates 815.28 St. Croix Boat and Packet Co. Arena Billing 35,687.58 LIBRARY Amdahl Locksmith Inc Chris Power Opener ‐ 3rd St 304.00 Art Reach St. Croix Programs 100.00 Brodart Co Materials 2,183.09 Heritage Printing Inc. Envelopes 161.10 Midwest Tape Materials 532.46 Minitex RFID Tags 806.00 Office of MN IT Services Phone 138.50 Petrie Angela Reimbursement ‐ Programs 113.70 Powers Jr Francis Gary Adult Programs 300.00 Recorded Books Inc Materials ‐ Audio (JAB) 121.21 Regents of the U of M Programs 295.00 Scholastic Inc Programs 463.57 Textile Center Programs 1,625.00 Date: July 23, 2019 TO: Mayor and Council FROM: Beth Wolf, City Clerk SUBJECT: Bagpipes and Bonfires, Episcopal Church of the Ascension The Episcopal Church of Ascension has made application to host their biennial event Bagpipes and Bonfires. This church festival and fundraiser is from 4 p.m. to 10 p.m. on September 28, 2019. This event celebrates Ascension Celtic history through music, food, games and drink. The event is held on the grounds of the Ascension Episcopal Church on Third Street under tents. The tents extend onto Third Street and the alley between Ascension Church and the Water Board. The Engineering Department has approved an obstruction permit for the tents. The organizer also has submitted a temporary liquor license (attached) with service and consumption only permitted inside the tents. This event uses police services during service of alcohol and has a street closure for more than 5 hours, therefore the event requires Council approval. All associated fees will be invoiced according to the City’s Fee Schedule. ACTION REQUIRED: If Council wishes to approve the special event they should pass a motion approving the 2019 Bagpipes and Bonfires Event and Temporary Liquor License subject to coordination of the event with the City’s Police, Fire, EMS and Public Works to meet the City’s requirements. DATE: July 23, 2019 TO: Mayor & City Council FROM: Beth Wolf, City Clerk RE: 2019 Rivertown Fall Art Festival The Great Stillwater Area Chamber of Commerce has made application to host it’s annual Rivertown Fall Art Festival on October 5th and 6th. Set up of the event begin Friday, October 4th. The festival would be open to the public on Saturday, October 5th, 10 a.m. to 5 p.m.; the beer service, food vendors and music will remain open until 8:00 p.m. (artists booths close at 5:00 pm.) and Sunday, October 6th, 11 a.m. – 4 p.m. Tear down would occur Sunday evening and include opening the parking lots. Cleanup will be completely finished Monday by noon. The Chamber is requesting the use of parking lots 5 & 9 for vendors, Lot 10 for vendor parking and on‐street parking on Mulberry Point Circle for loading/unloading. The cost for the spaces will be $571.50, as recommended by the Downtown Parking Commission. The event includes a beer tent with consumption venue wide. The organizer has submitted a temporary liquor license (attached). The organizer will post “NO ALCOHOL BEYOND THIS POINT” signs every 50‐75 ft. around the event perimeter, increase private security to a level determined by the Police Chief to ensure that alcohol stays within the venue, as well as hire Stillwater Police Officers during the time of alcohol consumption and sales on Saturday and Sunday. All associated fees will be invoiced according to the City’s Fee Schedule. ACTION REQUIRED: If Council wishes to approve the special event they should pass a motion approving the 2019 Rivertown Fall Art Festival Event, Contract and Temporary Liquor License subject to coordination of the event with the City’s Police, Fire, EMS and Public Works to meet the City’s requirements. CITY OF STILLWATER, MINNESOTA 2019 RIVERTOWN FALL ART FESTIVAL AGREEMENT THIS AGREEMENT is made this 30th day of July, 2019 between the City of Stillwater, Washington County, Minnesota (“City), and Greater Stillwater Chamber Of Commerce, a Minnesota non‐profit corporation, (“Organizer”) WHEREAS, in light of the foregoing, the Organizer wishes and the City will permit the Greater Stillwater Area Chamber of Commerce to organize and conduct a Rivertown Fall Art Festival in order to foster and promote tourism within the City of Stillwater and the St. Croix Valley and encourage commerce within the City that will ultimately increase property values and the quality of life within the City, thereby promoting the welfare of the City; NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreements contained herein, the City and the Organizer agree as follows: 1. Dates and Hours of Event. Operations are limited as follows: Setup: Friday, October 4 – 7 a.m. – 7 p.m. Event: Saturday, October 6 – 10 a.m. – 5 p.m. . Beer Tent, Vendors and Music 10 a.m. to 8 p.m. Sunday, October 7 – 11 a.m. – 4 p.m. Cleanup: Sunday, October 7 – 5 p.m. – 10 p.m. and Monday 7 a.m. – 12 p.m. Load In/Load Out: Organizer will coordinate the Load In/Load Out times for the event with the City Public Works Department by September 20, 2019. 2. Event/Alcohol. The Organization has been granted authority to dispense intoxicating Liquor at the 2019 Rivertown Fall Art Festival. This approval is subject to the Organizer applying for and being granted a Temporary Liquor License and Consumption Permit as allowed by the Stillwater City Code and State Law. All Licenses must be approved and proof of Liquor Liability Insurance Coverage must be submitted to the City Clerk by September 20, 2019. This Agreement will set forth the terms and conditions that will control the dispensing of Liquor at the Event. a. The Area. The area where dispensing of Liquor will be permitted in a contained area as advised by the Police Department. b. Fencing/Demarking of Venue. The Venue Area must be demarked by the Organization. The demarked area must be adequate to insure tha t alcohol sales and consumption remain inside the venue area. A breach of the venue area is grounds for the Police Chief to terminate all alcohol sales in the area. c. Tents. The Fire Department shall inspect all large tents (beer garden, etc.) d. Security. For the purpose of this plan, the Organizer shall increase the paid private security, as directed by the Police Chief and/or increase the Stillwater Police presence to ensure that the alcohol stays with the venue area. The Police Chief will determine the increase in the Stillwater Police Department presence. A paid professional security guard/police personnel must be in place to insure that no beer or liquor enters or leaves the Area. e. Types. No Liquor is allowed in the Area except that Liquor which is sold by the Organization. The Organization is responsible to see that no other Liquor is brought in the Area. The Organization must not allow bottles, containers or coolers to be brought into the Area. f. Signs. The entire venue must be posted with signs that state NO ALCOHOL BEYOND THIS POINT at regular intervals (50‐75 feet apart); signs should be a minimum of 18 x 24 in. The number and content of which must be approved by the City Police Chief describing the regulations prohibiting Liquor outside of the Area, as well as prohibition against participants bringing their own Liquor into the Area and the requirement for identification bracelets must be worn to consume alcohol. g. Identification. The Organization will provide liquor identification bracelets. The Organization will permit no one to consume Liquor unless they are wearing an identification bracelet. The Organization will be responsible for the issuance of bracelets and that the bracelets are given only to those who are legally entitled to consume Liquor. h. Compliance. The Organization shall obtain a temporary liquor license selling of Liquor during the event, obtain an alcohol consumption permit and pay the respective fees. Prior to opening date of the Event, the Organization must develop a management policy or program regarding all aspects of alcohol compliance, including the problem of under‐age consumer, sales after hours, over‐serving and the recognition of false identification. The City Police Chief must approve the policy before implementation. The Organization must train all alcohol servers with regard to the policy, including instruction by a professional recognized in the area of alcohol awareness before the opening date of the Event. i. Inspection. The Organization acknowledges that as a liquor license holder for the Celebration, it is subject to Stillwater City Code §43‐8, which authorizes that all premises from which intoxicating Liquor is offered at on‐sale, are subject to inspection for alcohol compliance by any police officer, health officer, or other designated officer or employee of the City during all hours the Area is open for the serving of alcohol. j. Liquor Liability Insurance. The Organization agrees to provide the City an insurance certificate for Liquor Liability during the event by September 20, 2019. 3. Insurance, Hold Harmless, and Indemnity. The Organizer agrees to indemnify and hold harmless the City with regard to any claims, causes of action or demands that might be brought against the City arising out of the events authorize d by this Agreement, except for those claims, causes of action or demands that arise out of the sole negligence, gross negligence and/or willful misconduct of the City or any of its agents or employees. Organizer also agrees to provide to the City evidence of insurance coverage of at least the statutory liability limits for municipalities covering claims that might be brought against the Organizer that arise out of the events authorized by this Agreement and to name the City as an additional insured on their policy “as their interest may appear.” Insurance Certificate must be received by the City no later than. The insurance protection will have the following limits: A. $1,500,000 for any number of claims arising out of a single occurrence, and to name the city as an additional insured “as their interests may appear.” B. Comprehensive Automobile Liability: (1) Bodily Injury: $500,000 Each Person and $1,000,000 Each Occurrence (2) Property Damage: $100,000 Each Occurrence C. Worker’s Compensation Coverage. 4. Contact Information. Organizer shall provide the City updated accurate contact phone numbers. 5. Public Safety Requirements. The organizer agrees that City has the right to increase the requirements to public safety resources based on participant numbers, threats, or weather conditions and any associated City costs will be paid for by the Organizer. 6. Required Information, Meetings, and Documentation. Organizer agrees that failure to provide required information and documents to the City is just cause for the City Council to terminate the agreement. 7. Noise Control. The Organizer is responsible to control the noise emanating from the Area at a level that will not interfere with the peace and repose of the residential area on the bluffs on the north, west and south edges of the downtown. 8. Police Power. With regard to Event, the City reserves the right to order a shutdown of the Area in the event the Chief of Police determines, in his sole discretion, that the public safety is threatened or any condition of this Agreement is violated. In that event, the Organizer will cease dispensing Liquor and must assist the police in the clearing of the Area. 9. Other Agencies. Organizer is responsible for obtaining all agreements and permits with outside agencies (i.e. Washington County Public Health & Environment, State Electrical Inspector). 10. Exclusive Use of Parks. In return for the exclusive use of the City Parks as identified on the approved overall site plan and/or Event maps, the Organizer hereby agrees to the following: a. Dumpsters. The Organizer must furnish dumpsters or roll–off boxes according to a plan approved by Public Works Staff in sufficient quantity to contain the accumulation of trash generated by the Event. Organizer must ensure that all trash or garbage is collected and hauled away daily in the Event areas. i. Dumpsters and trash receptacles in the Event Areas must be picked up and emptied each day during the Event. The City may amend the plan and require additional dumpsters or trash receptacles if the need arises. ii. If possible, Organizer will provide recycling and organics containers for the Event. b. Traffic Control. To ensure traffic and pedestrian control the Organizer must place standard reflective barricades according to a plan approved by the Public Works Director or his designee. Barricades may be supplied by the Organizer, or by the City. Charges for the City supply of barricades are set forth in the current City Fee Schedule. c. Electricity and City Water. Existing electrical boxes will be opened by the City to provide access for the Event and invoiced according to the current City Fee Schedule. If access to water main or hydrants is needed, the Organizer sh all make arrangements with the Board of Water Commissioners and pay related water fees. d. Restrooms. Additional portable restrooms must be provided by the Organizer if deemed necessary to protect public health as determined by the Public Works Superintendent. City Public Restrooms on the Pedestrian Walkway will remain open during the Event and the City will supply and equip restrooms, however, the Organizer will be responsible for maintaining, cleaning, staffing and security and supervision for restrooms. If the Organizer elects not to provide these services it must notify the City at least two weeks prior to the event, and in that event, the Organizer will bear the City costs associated with this work. e. Irrigation System in Park Property. Lowell Park is maintained by a buried irrigation system. This system is easily damaged by stakes or posts that are driven into the ground or by equipment and vehicles running over irrigation heads. For that reason, stakes or posts longer than 12 inches and more than a quarter inch in diameter may not be used in the Park. Organizer must work with the City Pub lic Works Department to determine the location of the irrigation system. Public Works will provide irrigation locates in areas where tents will be staked on Friday, October 4, 2019. f. Grey Water. The Organizer agrees to ensure that all vendors’ waste water be discharged into a holding tank approved by Washington County Public Health & Environment. Vendors without an approved holding tank must discharge into grey water barrels provided by the Organizer. Disposal costs are the responsibility of the Organizer. Grey water barrels or holding tanks shall not be disposed into the City’s sanitary or storm sewers, for any reason. g. Use of City Parking Lots. The Organizer will be using Lots 5, 9, and Lot 10 for Food Vendors and Vendor parking. THERE IS ABSOLUTELY NO STAKING INTO PARKING LOTS. Organizer will be responsible for any damage. Payment for the Parking Lot(s) and/or on‐street parking spaces will be charged according to the City’s Fee Schedule or the Downtown Parking Commission’s recommendation. The City prefers the Organizer to stage the activities in Lowell Park rather than in public parking lots. If Lowell Park is not flooded and is not recovering from flood waters, then it should be the primary event venue. Use of public parking lots will be approved only as an alternate or if sufficient space does not exist in the Park to accommodate all event activities. If in the opinion of the City, public parking lots will be needed, then the preferred lots for use would be Lots 4, 5, 9, 10 and 11, upon City approval. These lots will be available to the Organizer exclusively from Friday AM until Monday AM of the Event weekend. 11. Event Fees. The Organizer agrees to submit event fees as stipulated in the 2019 Fee Schedule payable to City by September 20, 2019. 12. Rules for Vendors. a. Food Vendors. All food vendors must be inspected and approved by Washington County Public Health & Environment and the Stillwater Fire Depa rtment and the State Electrical Inspector prior to beginning operation. Inspection costs (if any) shall be paid for by the Event Organizer directly to the agency/person doing the inspection. b. The Organizer must provide a complete list of all vendors to each of these agencies at least two weeks prior to the event. c. No Camping. No camping in tents, trailers or campers is allowed in the Downtown during the events. 13. Damage to Parks, Paved Trails and Parking Lots. All damage to parks, paved trails, or parking lots must be repaired at the expense of the Organizer whether caused by the Organizer or its vendors. The City will deduct the cost of repair from Organizer Deposit, however, the Organizer will remain responsible for costs and repairs that exceed the Deposit. 14. Clean‐Up. On the day following the close of the Event, weather permitti ng, the Organizer will clean Lowell Park and other areas that have been impacted by the Event. The Organizer is responsible for all costs, incurred for the clean‐up of areas neglected by the Organizer. 15. Term of Agreement. This Agreement will remain in effect for a period of one (1) year from the date of its execution. Further, in the event that a determination is made by the City Council, based upon the advice of the Police Chief that the Event is a threat to the health, safety or welfare of the community, the City Council reserves the right to cancel any remaining term and terminate this Agreement. 16. Event Application. The Application for the Event as submitted by the Organizer and any amended documentation is considered part of this Contract and any representations of the Organizer or conditions imposed by the City are restated as if fully set forth in this Agreement. IN WITNESS WHEREOF, the parties have set their hands this 30th day of July 2019. CITY OF STILLWATER Ted Kozlowski, Mayor Attest: _______________________________________ Beth Wolf, City Clerk STATE OF MINNESOTA ) ) ss COUNTY OF WASHINGTON ) On this 30th day of July, 2019 before me, a Notary Public within and for said County, appeared Ted Kozlowski and Beth Wolf, to me personally known, that they are, respectively, the Mayor and City Clerk of the City of Stillwater, and that this instrument was signed and sealed on behalf of the City by authority of its City Council, and they a cknowledged the said instrument was the free act and deed of the City. Notary Public GREATER STILLWATER CHAMBER OF COMMERCE Robin Anthony, Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF WASHINGTON ) On this ______ day of August 2019 before me, a Notary Public within and for said County, appeared Robin Anthony to me personally known, who, being duly sworn, did say that she is the Executive Director of the Greater Stillwater Chamber Of Commerce and that this instrument was signed as the free act and deed of the non‐profit corporation. ______________________________________________ Notary Public PLANNING REPORT TO: City Council MEETING DATE: July 30, 2019 REQUEST: Approval of the State Historic Preservation Office Certified Local Government Contract for the City of Stillwater to host the 2020 Statewide Historic Preservation conference REPORT BY: Abbi Jo Wittman, City Planner INTRODUCTION The State Historic Preservation Office (SHPO) annual holds a statewide historic preservation conference. The SHPO has selected Stillwater as the host city in 2020. The conference will be held in downtown Stillwater in early fall. To offset the costs associated with this conference, the Community Development Department has applied for, and been awarded, a Certified Local Government grant. COUNCIL ACTION Staff recommends the Council move to approve the State Historic Preservation Office’s grant for the 2020 Statewide Historic Preservation conference and authorize the mayor and the city planner to execute the grant contract. Attachments: Resolution Contract RESOLUTION 2019 - XX APPROVING THE STATE HISTORIC PRESERVATION OFFICE CERTIFIED LOCAL GOVERNMENT GRANT CONTRACT WHEREAS, the State Historic Preservation Office annually holds the statewide historic preservation conference (Conference) in a Minnesota city or town each year; and WHEREAS, the City of Stillwater has been chosen to be the host city for the 2020 Conference; and WHEREAS, the Stillwater Heritage Preservation Commission has been awarded a $13,800 Certified Local Government grant from the State Historic Preservation Office to help offset the costs associated with the Conference. BE IT RESOLVED by the City Council of Stillwater, MN that the grant contract between the City of Stillwater and the State Historic Preservation Office for the 2020 Statewide Historic Preservation Conference, as on file with the City Clerk, is hereby approved. BE IT FURTHER RESOLVED, the Mayor and the City Planner are hereby authorized to sign said grant contract on behalf of the City of Stillwater. Adopted by the Stillwater City Council on this 30th day of July, 2019. _________________________________ Ted Kozlowski, Mayor ATTEST: ______________________________ Beth Wolf, City Clerk Abbi Jo Wittman City of Stillwater Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 1 Evaluation Only. Created with Aspose.Words. Copyright 2003-2019 Aspose Pty Ltd. 40th Annual Statewide Historic Preservation Conference Host City Application SHPO Certified Local Government (CLG) Grant FY19 City of Stillwater Mr. Ted Kozlowski 216 4th St N Stillwater Stillwater, Minnesota 55082-4898 O: 6514308820 Ms. Abbi Jo Wittman 216 4th St N Stillwater Stillwater, Minnesota 55082-4898 awittman@ci.stillwater.mn.us O: 6514308822 Abbi Jo Wittman City of Stillwater Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 2 FollowUp Form Grantee Information and Contract Project Name 40th Annual Statewide Historic Preservation Conference Host City Application City Name, Address, and County Stillwater (216 4th Street North, Stillwater, MN 55082) Washington This Agreement is made by and between the State Historic Preservation Office (hereinafter called State), and the City. Pursuant to authority granted by the National Historic Preservation Act of 1966, as amended. Recitals 1.Under Minn. Stat. 138.081. Municipal Heritage Preservation act the State is empowered to enter into this grant. 2.The State is in need of historic preservation services to protect the valued resources of Minnesota’s buildings and structures. 3.Pursuant to the Act, the State has been allocated $1,002,622 in funds in Fiscal Year 2019 by the United States Department of the Interior, of which, a minimum of 10 percent must be transferred for use by Certified Local Governments for qualifying historic preservation activities between October 1,2018 and September 30, 2020. 4.The City has applied for and been granted Certified Local Government Status and has made application for Certified Local Government funds to be utilized in carrying out the project described below 5. The City represents that it is duly qualified and agrees to perform all services described in this grant contract to the satisfaction of the State. Pursuant to Minn.Stat.§16B.98, Subd.1, the City agrees to minimize administrative costs as a condition of this grant. Grant Contract Effective Date 07/01/2019 06/21/2019 1 Term of Grant Contract Abbi Jo Wittman City of Stillwater Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 3 1.1 Effective Date: No payments will be made until Effective Date, or the date the State obtains all required signatures under Minn. Stat. § 16B.98, subd. 5, whichever is later. Per Minn.Stat. § 16B.98, subd. 7, no payments will be made to the Grantee until this grant contract is fully executed. The Grantee must not begin work under this grant contract until this contract is fully executed and the Grantee has been notified by the State’s Authorized Representative to begin the work. Expiration Date 07/31/2020 7/31/2020 1.2 Expiration date: Expiration Date, or until all obligations have been satisfactorily fulfilled, whichever occurs first. 1.3 Survival of Terms. The following clauses survive the expiration or cancellation of this grant contract: 8. Liability; 9. State Audits; 10. Government Data Practices and Intellectual Property; 12. Publicity and Endorsement; 13. Governing Law, Jurisdiction, and Venue; and 15 Data Disclosure. 2 City's Duties The City, who is not a state employee, will: Comply with required grants management policies and procedures set forth through Minn.Stat.§16B.97, Subd. 4 (a) (1). 2.1 Project Description A. The Project Time Period, Work Summary, Photograph Guidelines (where applicable), Consultations and Progress Reports, Final Products, Project Director's Report, Project Budget, and Reimbursement Schedule are described in the Project Description, Attachment A, which is attached hereto and made a part hereof. B. The City agrees the project will be carried out as described in the Project Description, unless modified pursuant to the provisions of Section 5 of this contract. C. The State will reimburse the City for the budget costs identified as Historic Preservation Fund (HPF) federal dollars in the Project Description, following submittal of materials as described in Section 4 of this Agreement. Final products which do not conform to the terms and conditions of this Agreement or which do not meet the applicable Secretary of the Interior's Standards will not be reimbursed. 2.2 Assurances A. The City assures that all work carried out on this project will conform to the Secretary of the Interior's Standards for Archeology and Historic Preservation (as published in the Federal Register of September 29, 1983) and that the project personnel meet the Secretary of the Interior's Professional Qualifications Standards (as published in the Federal Register of September 29, 1983) as stipulated in the Project Description. B. The City assures that this project will be administered and conducted in accordance with the following 1. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). a. In addition to the requirements of these regulations the City will allow a minimum of two weeks between the date bid solicitations are published and the date bidders must respond; and allow eighteen calendar days between the date invitations are mailed to potential bidders and the date bidders must respond Abbi Jo Wittman City of Stillwater Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 4 2.Historic Preservation Fund (HPF) Grants Manual (June 2007), describes the framework for the operation of the Historic Preservation Fund (HPF) grants-in-aid program authorized by the Act, found online at www.nps.gov/preservation-grants/HPF_Manual.pdf. C. The City acknowledges that this project is being supported, in part, with funds from the United States Department of the Interior. As a condition of receiving such funds, the City assures compliance with Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975. The City also agrees as follows: In the hiring of common or skilled labor for the performance of any work hereunder, no contractor, material supplier or vendor shall, by reason of race, creed or color, discriminate against any person or persons who are citizens of the United States, or resident aliens, who are qualified and available to perform the work to which the employment relates. No contractor, material supplier or vendor shall, in any manner, discriminate against, or intimidate, or prevent the employment of any person or persons identified in the preceding paragraph, or on being hired, prevent, or conspire to prevent, the person or persons from the performance of work under any contract on account of race, creed or color. The violation of this section is a misdemeanor pursuant to Minnesota Statutes. This Agreement may be canceled or terminated by the State, and all money due, or to become due hereunder may be forfeited for a second or any subsequent violation of the terms of this section. D. The City agrees to make repayment of grant funds to the State if terms and conditions of this Agreement are not followed or costs claimed are subsequently disallowed. E. The City, in accordance with provisions of 18 USC 1913 regarding lobbying, assures that no part of grant budget will be used directly or indirectly or to pay for any personal service, advertisement, telegram, telephone, letter, printed or written matter, or other device intended or designed to influence in any manner a member of Congress, to favor or oppose, by vote or otherwise, any legislation or appropriation by Congress, whether before or after the introduction of any bill or resolution proposing such legislation or appropriation. This shall not prevent communicating to members of Congress on the request of any member or to Congress, through the proper official channels, requests for legislation or appropriations which they deem necessary for the efficient conduct of the public business. F. The City assures that transferred federal monies will not be applied as part of the matching (applicant) share, and that monies used as match on other federal grants will not be used as matching (applicant) share on this project. 3 Time The City must comply with all the time requirements described in this grant contract. In the performance of this grant contract, time is of the essence. Amount Awarded $13,800.00 Abbi Jo Wittman City of Stillwater Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 5 4 Consideration and Payment 4.1 Consideration. The State will pay for all services performed by the Grantee under this grant contract as follows: a) Compensation: The Grantee will be paid within 30 days of requesting reimbursement, with total obligation to the Grantee not to exceed Grant Amount. (b) Travel Expenses Reimbursement for travel and subsistence expenses actually and necessarily incurred by the City as a result of this grant contract will not exceed the amount on the approved budget, provided that the City will be reimbursed for travel and subsistence expenses in the same manner and in no greater amount than provided in the current "Commissioner’s Plan” promulgated by the Commissioner of Minnesota Management and Budget (MMB). The City will not be reimbursed for travel and subsistence expenses incurred outside Minnesota unless it has received the State’s prior written approval for out of state travel. Minnesota will be considered the home state for determining whether travel is out of state. (c) Total Obligation The total obligation of the State for all compensation and reimbursements to the City under this grant contract will not exceed the grant amount. 4.2 Payment (a) Invoices The State will promptly pay the City after the City presents an itemized invoice for the services actually performed and the State's Authorized Representative accepts the invoiced services. Invoices must be submitted timely. (b) Federal funds. Payments under this grant contract will be made from federal funds obtained by the State through Title: Historic Preservation Fund Grants-In-Aid CFDA number 15.904 of the National Historic Preservation Act of 1966, as amended. The City is responsible for compliance with all federal requirements imposed on these funds and accepts full financial responsibility for any requirements imposed by the City’s failure to comply with federal requirements. (c) Unexpended Funds The City must promptly return to the State any unexpended funds that have not been accounted for annually in a financial report to the State due at grant closeout. (d) Contracting and Bidding Requirements Per Minn. Stat.§471.345, the City must do the following if contracting funds from this grant contract agreement for any supplies, materials, equipment or the rental thereof, or the construction, alteration, repair or maintenance of real or personal property. (a)If the amount of the contract is estimated to exceed $100,000, a formal notice and bidding process must be conducted in which sealed bids shall be solicited by public notice. Municipalities may, as a best value alternative, award a contract for construction, alteration, repair, or maintenance work to the vendor or contractor offering the best value under a request for proposals as described in Minn. Stat.§16C.28, Subd. 1, paragraph (a), clause (2) (b) If the amount of the contract is estimated to exceed $25,000 but not $100,000, the contract may be made either upon sealed bids or by direct negotiation, by obtaining two or more quotations for the purchase or sale when possible, and without advertising for bids or otherwise complying with the requirements of competitive bidding. All quotations obtained shall be kept on file for a period of at least one year after receipt thereof. Municipalities may, as a best value alternative, award a contract for construction, alteration, repair, or Abbi Jo Wittman City of Stillwater Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 6 maintenance work to the vendor or contractor offering the best value under a request for proposals as described in Minn. Stat.§16C.28, Subd. 1, paragraph (a), clause (2) and paragraph (c). (c)If the amount of the contract is estimated to be $25,000 or less, the contract may be made either upon quotation or in the open market, in the discretion of the governing body. If the contract is made upon quotation it shall be based, so far as practicable, on at least two quotations which shall be kept on file for a period of at least one year after their receipt. Alternatively, municipalities may award a contract for construction, alteration, repair, or maintenance work to the vendor or contractor offering the best value under a request for proposals as described in Minn. Stat.§16C.28, Subd. 1, paragraph (a), clause (2) (d) Support documentation of the bidding process utilized to contract services must be included in the City’s financial records, including support documentation justifying a single/sole source bid, if applicable. (e) For projects that include construction work of $25,000 or more, prevailing wage rules apply per; Minn. Stat. §§177.41 through 177.44 consequently, the bid request must state the project is subject to prevailing wage. These rules require that the wages of laborers and workers should be comparable to wages paid for similar work in the community as a whole. A prevailing wage form should accompany these bid submittals. (f)The City agrees not to contract with any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, Debarment and Suspension. Current lists of such parties are available online at the Minnesota Department of Administration website http://www.mmd.admin.state.mn.us/debarredreport.asp 4.3 Payments to Individuals The Grantee must ensure that every individual receiving money from this grant in exchange for work, services, performances or participation, complete IRS form W-4, W-8 or W-9, depending upon the individual’s employment or citizenship status. All payments to individuals must comply with federal and state tax laws and reporting requirements. 5 Conditions of Payment All services provided by the City under this grant contract must be performed to the State’s satisfaction, as determined at the sole discretion of the State’s Authorized Representative and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The City will not receive payment for work found by the State to be unsatisfactory or performed in violation of federal, state, or local law. All reporting involved with the project must be submitted by August 30, 2019 and/or August 30, 2020. Authorized Representative Grantee's Authorized Representative Abbi Jo Wittman 6 Authorized Representative The State's Authorized Representative is Amy Spong, Department of Administration, 203 Administration Building, 50 Sherburne Avenue, St. Paul, MN 55155, 651-201-3288 or his/her successor, and has the responsibility to monitor the Grantee’s performance and the authority to accept the services provided under this grant contract. If the services are reasonably satisfactory, the State's Authorized Representative will certify acceptance on each invoice submitted for payment. Abbi Jo Wittman City of Stillwater Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 7 The Grantee’s Authorized Representative is See Above. If the Grantee’s Authorized Representative changes at any time during this grant contract, the Grantee must immediately notify the State. Assignment Amendments, Waiver, and Grant Contract Complete 7.1 Assignment The City shall neither assign nor transfer any rights or obligations under this grant contract without the prior written consent of the State, approved by the same parties who executed and approved this grant contract, or their successors in office. 7.2 Amendments Any amendments to this grant contract must be in writing and will not be effective until it has been executed and approved by the same parties who executed and approved the original grant contract, or their successors in office. A. Any significant variations from the approved work summary, products, budget, and performance/reporting milestones described in Attachment A which are experienced or anticipated during the course of the project and any significant problems, delays, or adverse conditions which materially affect planned performance should be submitted in writing to Mike Koop, State Historic Preservation Office, Grants Office, 50 Sherburne Avenue, Saint Paul, Minnesota, 55155. The State will respond in writing, either approving or not approving the changes, and may amend the contract if deemed necessary. The City is aware that some changes may require approval by the National Park Service and agrees to submit any necessary changes as early as possible during the project period. Variations which are not known until the conclusion of the project may be submitted with the final Request for Reimbursement; however, the City understands that costs may be disallowed if changes are not approved. B. If any part of the budgeted federal grant funds will not be used, the City must notify the State at least sixty (60) days before the project's ending date. Failure of the City to notify the State may result in the loss of federal funds to the state, and may have an adverse effect on future applications for CLG funds by the City. 7.3 Waiver If the State fails to enforce any provision of this grant contract, that failure does not waive the provision or the State’s right to enforce it. 7.4 Grant Contract Complete This grant contract contains all negotiations and agreements between the State and the Grantee. No other understanding regarding this grant contract, whether written or oral, may be used to bind either party. 8 Liability 8.1 The City must indemnify, save, and hold the State, its agents, and employees harmless from any claims or causes of action, including attorney’s fees incurred by the State, arising from the performance of this grant contract by the City or the City’s agents or employees. This clause will not be construed to bar any legal remedies the City may have for the State's failure to fulfill its obligations under this grant contract. 8.2 The City will indemnify and save and hold the Department of the Interior harmless from any and all claims or causes of action arising from the performance of this project by the City. 9 Audit 9.1 State Audits Under Minn. Stat. § 16B.98, Subd.8, the City’s books, records, documents, and accounting procedures and practices of the City or other party relevant to this grant agreement or transaction are subject to examination by the State and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end Abbi Jo Wittman City of Stillwater Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 8 of this grant agreement, receipt and approval of all final reports, or the required period of time to satisfy all state and program retention requirements, whichever is later. 9.2 Federal Audits A. For cities who expend $750,000 or more a year in Federal funds, the City must submit single or program-specific audits completed pursuant to Uniform Grant Guidance for all fiscal years that include the project period. These must be submitted to Mike Koop, State Historic Preservation Office, 50 Sherburne Avenue, Saint Paul, Minnesota 55155 within one hundred and twenty (120) days of their completion. B. The City agrees to maintain records to document any matching funds claimed as part of the project. The City further agrees to secure reasonable written proof of the value of Staff or Volunteer Labor, and for Donated Materials contributed to the project. C. The City agrees that accounts and supporting documents relating to project expenditures will be adequate to permit an accurate and expeditious audit. An audit may be made at any time by the State, its designated representatives, or any applicable agency of the State of Minnesota 10 Government Data Practices and Intellectual Property 10.1 Government Data Practices The City and State must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by the State under this grant contract, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the City under this grant contract. The civil remedies of Minn. Stat. §13.08 apply to the release of the data referred to in this clause by either the City or the State. If the City receives a request to release the data referred to in this Clause, the City must immediately notify the State. The State will give the City instructions concerning the release of the data to the requesting party before the data is released. The City’s response to the request shall comply with applicable law 10.2. Intellectual Property Rights The State retains ownership of all intellectual property created with these grant funds. The State gives the City an unlimited license to use of all intellectual property created with these grant funds for authorized governmental purposes. 11 Workers’ Compensation The City certifies that it is in compliance with Minn. Stat. § 176.181, subd. 2, pertaining to workers’ compensation insurance coverage. The Grantee’s employees and agents will not be considered State employees. Any claims that may arise under the Minnesota Workers’ Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the State’s obligation or responsibility. 12 Publicity and Endorsement 12.1 Publicity Any publicity regarding the subject matter of this grant contract must identify the State as the sponsoring agency and must not be released without prior written approval from the State’s Authorized Representative. For purposes of this provision, publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the City individually or jointly with others, or any Abbi Jo Wittman City of Stillwater Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 9 subcontractors, with respect to the program, publications, or services provided resulting from this grant contract. All projects primarily funded by state grant appropriation must publicly credit the State of Minnesota, including on the City’s website when practicable. 12.2 Federal Funding A.Public Law 101-517, Title V, Section 511, states: When issuing statements, press releases, requests for proposals, bid solicitations and other documents describing projects or programs funded in whole or in part with Federal money, all grantees receiving Federal funds, including but not limited to State and local governments, shall clearly state (1) the percentage of the total costs of the program or project which will be financed with Federal money, (2) the dollar amount of Federal funds for the project or program, and (3) percentage and dollar amount of the total costs of the project or program that will be furnished by nongovernmental sources. B.The City agrees any publications, studies, reports, presentations, films, audio visual materials, exhibits, or other material prepared with grant assistance will contain an acknowledgment of HPF grant funds and nondiscrimination policy as follows: "The activity that is the subject of this (type of publication) has been financed (in part/entirely) with Federal funds from the National Park Service, U. S. Department of the Interior. However, the contents and opinions do not necessarily reflect the views or policies of the Department of the Interior, nor does the mention of trade names or commercial products constitute endorsement or recommendation by the Department of the Interior.” "This program receives Federal financial assistance for identification and protection of historic properties. Under Title VI of the Civil Rights Act of 1964 and Section 504 of the Rehabilitation Act of 1973, the U. S. Department of the Interior prohibits discrimination on the basis of race, color, national origin, or disability in its federally assisted programs. If you believe you have been discriminated against in any program, activity, or facility as described above, or if you desire further information, please write to: Office for Equal Opportunity, U. S. Department of the Interior, National Park Service, 1849 C St., NW, Washington, D.C. 20240.” 12.3 Endorsement The Grantee must not claim that the State endorses its products or services. 13 Governing Law, Jurisdiction, and Venue Minnesota law, without regard to its choice-of-law provisions, governs this grant contract. Venue for all legal proceedings out of this grant contract, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 14 Termination 14.1 Termination by the State The State may immediately terminate this grant contract with or without cause, upon 30 days’ written notice to the Grantee. Upon termination, the Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed. 14.2 Termination for Cause The State may immediately terminate this grant contract if the State finds that there has been a failure to comply with the provisions of this grant contract, that reasonable progress has not been made or that the purposes for which the funds were granted have not been or will not be fulfilled. The State may take action to protect the interests of the State of Minnesota, including the refusal to disburse additional funds and requiring the return of all or part of the funds already disbursed. Abbi Jo Wittman City of Stillwater Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 10 14.3 Termination for Insufficient Funding The State may immediately terminate this grant contract if: (a)Funding for the Grant is withdrawn by the U.S. Department of Interior. (b) Or, if funding cannot be continued at a level sufficient to allow for the payment of the services covered here. Termination must be by written or fax notice to the City. The State is not obligated to pay for any services that are provided after notice and effective date of termination. However, the City will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed to the extent that funds are available. The State will not be assessed any penalty if the contract is terminated because of the decision of the Minnesota Legislature, or other funding source, not to appropriate funds. The State must provide the City notice of the lack of funding within a reasonable time of the State’s receiving that notice. 15 Data Disclosure Under Minn. Stat. § 270C.65, Subd. 3, and other applicable law, the Grantee consents to disclosure of its social security number, federal employer tax identification number, and/or Minnesota tax identification number, already provided to the State, to federal and state tax agencies and state personnel involved in the payment of state obligations. These identification numbers may be used in the enforce¬ment of federal and state tax laws which could result in action requiring the Grantee to file state tax returns and pay delinquent state tax liabilities, if any. Signatures 1. STATE ENCUMBRANCE VERIFICATION Individual certifies that funds have been encumbered as required by Minn. Stat. § § 16A.15 and 16C.05. ELECTRONIC SIGNATURE Twauna Mullins DATE 07/22/2019 SWIFT Grant contract No. - 163184/300-8810 2. GRANTEE The Grantee certifies that the appropriate person(s) have executed the grant contract on behalf of the Grantee as required by applicable articles, bylaws, resolutions, or ordinances. Abbi Jo Wittman City of Stillwater Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 12 File Attachment Summary Applicant File Uploads No files were uploaded PLANNING REPORT TO: City Council MEETING DATE: July 30, 2019 REQUEST: Approval of the State Historic Preservation Office Certified Local Government Contract for the Stillwater Heritage Preservation Commission Enabling Ordinance Amendment Project REPORT BY: Abbi Jo Wittman, City Planner INTRODUCTION To help protect the character and nature of the community and its historic resources, in 1987 the City of Stillwater developed an ordinance specifically pertaining to its Heritage Preservation Commission (HPC). The framework created remains mostly intact today with minimal modifications in the last three decades. However, certain activities of the HPC (or activities which the HPC may be required to be involved with) are also addressed in over one dozen other City Code Sections. This complex and disconnected system for the preservation of Stillwater sites and structures has made it difficult for the public to understand and for the HPC to administer. Consequently, City staff is challenged when assisting elected and appointed officials and property owners through specific application review processes and permit approvals. As a result, the Historic Resources chapter of the draft 2040 Comprehensive Plan calls for an update to the City’s preservation ordinance. ORDINANCE UPDATE In conjunction with its HPC, an outside consultant and a small citizen advisory committee made up of business and property owners, the City will: 1. Conduct a detailed and thoughtful review of specific City Code Sections pertaining to the Heritage Preservation Commission (as shown on the attached page and labeled as Exhibit A) and conduct an ordinance amendment to clean up code inconsistencies, strengthen the connection between the City Code and the design guidelines, to better define HPC activities, as well as strengthen the connection between HPC activities and the City’s Comprehensive Plan goals and policies. 2. Combine all adopted and draft design guidelines into a single reference document. Page 2 of 3 a. A specific goal of the reference document will tie established design guidelines to the standards set forth in the City Code. b. This will not involve significant alterations of, or additions to, previously adopted guidelines. Though overlap may occur and the chosen consultant may choose to modify it, it is anticipated the project will progress as per the following schedule: Year Month Activity 2019 July Project Administration August Stakeholder Outreach September Consultant Selection October Existing Ordinance Analysis November Ordinance Reorganization December Stakeholder Survey 2020 January Stakeholder Listening Session February Ordinance Amendments March Public Input April Ordinance Finalization April SHPO Review May Commission(s) Hearing June Council Hearings(s) July Project Conclusion It is estimated this project will cost $31,275. City staff has applied for and been awarded $26,000 in grants to help offset the costs associated with hiring a consultant. The State Historic Preservation Office has awarded the City from the $16,050 from the Certified Local Government grant program. Acceptance of this grant is for Council consideration. An additional $9,950 has been awarded by the Minnesota Historical Society; acceptance of this grant has already occurred. COUNCIL ACTION Staff recommends the Council move to approve the State Historic Preservation Office’s grant for the Stillwater Heritage Preservation Commission Enabling Ordinance Amendment project and authorize the mayor and the city planner to execute the grant contract. Attachments: Exhibit A Resolution Contract Page 3 of 3 EXHIBIT A City Code Title Brief Description Section 22-7 Heritage Preservation Commission The original, but modified, HPC enabling ordinance. Addresses HPC functions, site designation, Conservation District review processes, site alterations and preservation programs. Section 31-101 Definitions The definitions found in the Zoning Code. Section 31-209 Design Permit Identifies requirements of a Design Permit, the most commonly utilized form of HPC review. Section 31-214 Sign Permit Identifies requirements of a Sign Permit. Section 31-215 Site Alteration Permit Addresses the purpose of the Site Alteration Permit and states standards for review and approval of activities. Section 31-308 RB – Two Family Residential District A zoning district which encompasses much of the old residential housing stock. It was once consistent with the Neighborhood Conservation District. Section 31-504 Bed and Breakfast Identifies standards for B&Bs and addresses requirements of the HPC. Section 31-509 Sign Regulations Indicates standard requirements for signs, including that of design review and/or design permit. Section 31-515.2 Large Projects in the CBD Zone Applicable to redevelopment of large tracks of land or buildings within the community core. References both a Design Permit and Site Alteration Permit. Chapter 34 Demolition Includes definitions relevant to Zoning. Section 41-7 Seasonal Outdoor Sales References standards for food trucks in the Downtown Design Review district. The City Code utilizes Design Review, Design Review Permit, and Design Permit rather interchangeably. The following Code Sections reference or require a design-based action though it is note determined who conducts what process for review and approval. City Code Title Section 31-303 Lakeshore Residential District Section 31-322 Campus Research Dev. District Section 31-501 Accessory Dwellings Section 31-503 Accessory Structures Section 31-512 Towers Section 31-310 Townhouse Residential District Section 31-311 Cove Townhouse Res. District Section 31-318 Village Commercial District RESOLUTION 2019 - XX APPROVING THE STATE HISTORIC PRESERVATION OFFICE CERTIFIED LOCAL GOVERNMENT GRANT CONTRACT WHEREAS, the Historic Resources chapter of the draft 2040 Comprehensive Plan calls for the revision of the City’s current preservation regulations; and WHEREAS, the Stillwater Heritage Preservation Commission has been awarded a $16,050 Certified Local Government grant from the State Historic Preservation Office to help offset the costs associated with the update of the City Code. BE IT RESOLVED by the City Council of Stillwater, MN that the grant contract between the City of Stillwater and the State Historic Preservation Office for the Stillwater Heritage Preservation Commission Enabling Ordinance Amendments, as on file with the City Clerk, is hereby approved. BE IT FURTHER RESOLVED, the Mayor and the City Planner are hereby authorized to sign said grant contract on behalf of the City of Stillwater. Adopted by the Stillwater City Council on this 30th day of July, 2019. _________________________________ Ted Kozlowski, Mayor ATTEST: ______________________________ Beth Wolf, City Clerk Abbi Jo Wittman City of Stillwater Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 1 Stillwater Heritage Preservation Commission Enabling Ordinance Amendments SHPO Certified Local Government (CLG) Grant FY19 City of Stillwater Mr. Ted Kozlowski 216 4th St N Stillwater Stillwater, Minnesota 55082-4898 O: 6514308820 Ms. Abbi Jo Wittman 216 4th St N Stillwater Stillwater, Minnesota 55082-4898 awittman@ci.stillwater.mn.us O: 6514308822 Abbi Jo Wittman City of Stillwater Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 2 FollowUp Form Grantee Information and Contract Project Name Stillwater Heritage Preservation Commission Enabling Ordinance Amendments City Name, Address, and County Stillwater (216 4th Street North, Stillwater, MN 55082), Washington County This Agreement is made by and between the State Historic Preservation Office (hereinafter called State), and the City. Pursuant to authority granted by the National Historic Preservation Act of 1966, as amended. Recitals 1.Under Minn. Stat. 138.081. Municipal Heritage Preservation act the State is empowered to enter into this grant. 2.The State is in need of historic preservation services to protect the valued resources of Minnesota’s buildings and structures. 3.Pursuant to the Act, the State has been allocated $1,002,622 in funds in Fiscal Year 2019 by the United States Department of the Interior, of which, a minimum of 10 percent must be transferred for use by Certified Local Governments for qualifying historic preservation activities between October 1,2018 and September 30, 2020. 4.The City has applied for and been granted Certified Local Government Status and has made application for Certified Local Government funds to be utilized in carrying out the project described below 5. The City represents that it is duly qualified and agrees to perform all services described in this grant contract to the satisfaction of the State. Pursuant to Minn.Stat.§16B.98, Subd.1, the City agrees to minimize administrative costs as a condition of this grant. Grant Contract Effective Date 07/01/2019 06/21/2019 1 Term of Grant Contract 1.1 Effective Date: No payments will be made until Effective Date, or the date the State obtains all required signatures under Minn. Stat. § 16B.98, subd. 5, whichever is later. Per Minn.Stat. § 16B.98, subd. 7, no payments will be made to the Grantee until this grant contract is fully executed. The Grantee must not begin work under Abbi Jo Wittman City of Stillwater Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 3 this grant contract until this contract is fully executed and the Grantee has been notified by the State’s Authorized Representative to begin the work. Expiration Date 07/31/2020 7/31/2020 1.2 Expiration date: Expiration Date, or until all obligations have been satisfactorily fulfilled, whichever occurs first. 1.3 Survival of Terms. The following clauses survive the expiration or cancellation of this grant contract: 8. Liability; 9. State Audits; 10. Government Data Practices and Intellectual Property; 12. Publicity and Endorsement; 13. Governing Law, Jurisdiction, and Venue; and 15 Data Disclosure. 2 City's Duties The City, who is not a state employee, will: Comply with required grants management policies and procedures set forth through Minn.Stat.§16B.97, Subd. 4 (a) (1). 2.1 Project Description A. The Project Time Period, Work Summary, Photograph Guidelines (where applicable), Consultations and Progress Reports, Final Products, Project Director's Report, Project Budget, and Reimbursement Schedule are described in the Project Description, Attachment A, which is attached hereto and made a part hereof. B. The City agrees the project will be carried out as described in the Project Description, unless modified pursuant to the provisions of Section 5 of this contract. C. The State will reimburse the City for the budget costs identified as Historic Preservation Fund (HPF) federal dollars in the Project Description, following submittal of materials as described in Section 4 of this Agreement. Final products which do not conform to the terms and conditions of this Agreement or which do not meet the applicable Secretary of the Interior's Standards will not be reimbursed. 2.2 Assurances A. The City assures that all work carried out on this project will conform to the Secretary of the Interior's Standards for Archeology and Historic Preservation (as published in the Federal Register of September 29, 1983) and that the project personnel meet the Secretary of the Interior's Professional Qualifications Standards (as published in the Federal Register of September 29, 1983) as stipulated in the Project Description. B. The City assures that this project will be administered and conducted in accordance with the following 1. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). a. In addition to the requirements of these regulations the City will allow a minimum of two weeks between the date bid solicitations are published and the date bidders must respond; and allow eighteen calendar days between the date invitations are mailed to potential bidders and the date bidders must respond 2.Historic Preservation Fund (HPF) Grants Manual (June 2007), describes the framework for the operation of the Historic Preservation Fund (HPF) grants-in-aid program authorized by the Act, found online at www.nps.gov/preservation-grants/HPF_Manual.pdf. Abbi Jo Wittman City of Stillwater Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 4 C. The City acknowledges that this project is being supported, in part, with funds from the United States Department of the Interior. As a condition of receiving such funds, the City assures compliance with Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975. The City also agrees as follows: In the hiring of common or skilled labor for the performance of any work hereunder, no contractor, material supplier or vendor shall, by reason of race, creed or color, discriminate against any person or persons who are citizens of the United States, or resident aliens, who are qualified and available to perform the work to which the employment relates. No contractor, material supplier or vendor shall, in any manner, discriminate against, or intimidate, or prevent the employment of any person or persons identified in the preceding paragraph, or on being hired, prevent, or conspire to prevent, the person or persons from the performance of work under any contract on account of race, creed or color. The violation of this section is a misdemeanor pursuant to Minnesota Statutes. This Agreement may be canceled or terminated by the State, and all money due, or to become due hereunder may be forfeited for a second or any subsequent violation of the terms of this section. D. The City agrees to make repayment of grant funds to the State if terms and conditions of this Agreement are not followed or costs claimed are subsequently disallowed. E. The City, in accordance with provisions of 18 USC 1913 regarding lobbying, assures that no part of grant budget will be used directly or indirectly or to pay for any personal service, advertisement, telegram, telephone, letter, printed or written matter, or other device intended or designed to influence in any manner a member of Congress, to favor or oppose, by vote or otherwise, any legislation or appropriation by Congress, whether before or after the introduction of any bill or resolution proposing such legislation or appropriation. This shall not prevent communicating to members of Congress on the request of any member or to Congress, through the proper official channels, requests for legislation or appropriations which they deem necessary for the efficient conduct of the public business. F. The City assures that transferred federal monies will not be applied as part of the matching (applicant) share, and that monies used as match on other federal grants will not be used as matching (applicant) share on this project. 3 Time The City must comply with all the time requirements described in this grant contract. In the performance of this grant contract, time is of the essence. Amount Awarded $16,050.00 4 Consideration and Payment 4.1 Consideration. The State will pay for all services performed by the Grantee under this grant contract as follows: a) Compensation: The Grantee will be paid within 30 days of requesting reimbursement, with total obligation to the Grantee not to exceed Grant Amount. (b) Travel Expenses Reimbursement for travel and subsistence expenses actually and necessarily incurred by the City as a result of this Abbi Jo Wittman City of Stillwater Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 5 grant contract will not exceed the amount on the approved budget, provided that the City will be reimbursed for travel and subsistence expenses in the same manner and in no greater amount than provided in the current "Commissioner’s Plan” promulgated by the Commissioner of Minnesota Management and Budget (MMB). The City will not be reimbursed for travel and subsistence expenses incurred outside Minnesota unless it has received the State’s prior written approval for out of state travel. Minnesota will be considered the home state for determining whether travel is out of state. (c) Total Obligation The total obligation of the State for all compensation and reimbursements to the City under this grant contract will not exceed the grant amount. 4.2 Payment (a) Invoices The State will promptly pay the City after the City presents an itemized invoice for the services actually performed and the State's Authorized Representative accepts the invoiced services. Invoices must be submitted timely. (b) Federal funds. Payments under this grant contract will be made from federal funds obtained by the State through Title: Historic Preservation Fund Grants-In-Aid CFDA number 15.904 of the National Historic Preservation Act of 1966, as amended. The City is responsible for compliance with all federal requirements imposed on these funds and accepts full financial responsibility for any requirements imposed by the City’s failure to comply with federal requirements. (c) Unexpended Funds The City must promptly return to the State any unexpended funds that have not been accounted for annually in a financial report to the State due at grant closeout. (d) Contracting and Bidding Requirements Per Minn. Stat.§471.345, the City must do the following if contracting funds from this grant contract agreement for any supplies, materials, equipment or the rental thereof, or the construction, alteration, repair or maintenance of real or personal property. (a)If the amount of the contract is estimated to exceed $100,000, a formal notice and bidding process must be conducted in which sealed bids shall be solicited by public notice. Municipalities may, as a best value alternative, award a contract for construction, alteration, repair, or maintenance work to the vendor or contractor offering the best value under a request for proposals as described in Minn. Stat.§16C.28, Subd. 1, paragraph (a), clause (2) (b) If the amount of the contract is estimated to exceed $25,000 but not $100,000, the contract may be made either upon sealed bids or by direct negotiation, by obtaining two or more quotations for the purchase or sale when possible, and without advertising for bids or otherwise complying with the requirements of competitive bidding. All quotations obtained shall be kept on file for a period of at least one year after receipt thereof. Municipalities may, as a best value alternative, award a contract for construction, alteration, repair, or maintenance work to the vendor or contractor offering the best value under a request for proposals as described in Minn. Stat.§16C.28, Subd. 1, paragraph (a), clause (2) and paragraph (c). (c)If the amount of the contract is estimated to be $25,000 or less, the contract may be made either upon quotation or in the open market, in the discretion of the governing body. If the contract is made upon quotation it shall be based, so far as practicable, on at least two quotations which shall be kept on file for a period of at least one year after their receipt. Alternatively, municipalities may award a contract for construction, alteration, repair, Abbi Jo Wittman City of Stillwater Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 6 or maintenance work to the vendor or contractor offering the best value under a request for proposals as described in Minn. Stat.§16C.28, Subd. 1, paragraph (a), clause (2) (d) Support documentation of the bidding process utilized to contract services must be included in the City’s financial records, including support documentation justifying a single/sole source bid, if applicable. (e) For projects that include construction work of $25,000 or more, prevailing wage rules apply per; Minn. Stat. §§177.41 through 177.44 consequently, the bid request must state the project is subject to prevailing wage. These rules require that the wages of laborers and workers should be comparable to wages paid for similar work in the community as a whole. A prevailing wage form should accompany these bid submittals. (f)The City agrees not to contract with any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, Debarment and Suspension. Current lists of such parties are available online at the Minnesota Department of Administration website http://www.mmd.admin.state.mn.us/debarredreport.asp 4.3 Payments to Individuals The Grantee must ensure that every individual receiving money from this grant in exchange for work, services, performances or participation, complete IRS form W-4, W-8 or W-9, depending upon the individual’s employment or citizenship status. All payments to individuals must comply with federal and state tax laws and reporting requirements. 5 Conditions of Payment All services provided by the City under this grant contract must be performed to the State’s satisfaction, as determined at the sole discretion of the State’s Authorized Representative and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The City will not receive payment for work found by the State to be unsatisfactory or performed in violation of federal, state, or local law. All reporting involved with the project must be submitted by August 30, 2019 and/or August 30, 2020. Authorized Representative Grantee's Authorized Representative Abbi Jo Wittman 6 Authorized Representative The State's Authorized Representative is Amy Spong, Department of Administration, 203 Administration Building, 50 Sherburne Avenue, St. Paul, MN 55155, 651-201-3288 or his/her successor, and has the responsibility to monitor the Grantee’s performance and the authority to accept the services provided under this grant contract. If the services are reasonably satisfactory, the State's Authorized Representative will certify acceptance on each invoice submitted for payment. The Grantee’s Authorized Representative is See Above. If the Grantee’s Authorized Representative changes at any time during this grant contract, the Grantee must immediately notify the State. Assignment Amendments, Waiver, and Grant Contract Complete 7.1 Assignment The City shall neither assign nor transfer any rights or obligations under this grant contract without the prior written consent of the State, approved by the same parties who executed and approved this grant contract, or their successors in office. 7.2 Amendments Abbi Jo Wittman City of Stillwater Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 7 Any amendments to this grant contract must be in writing and will not be effective until it has been executed and approved by the same parties who executed and approved the original grant contract, or their successors in office. A. Any significant variations from the approved work summary, products, budget, and performance/reporting milestones described in Attachment A which are experienced or anticipated during the course of the project and any significant problems, delays, or adverse conditions which materially affect planned performance should be submitted in writing to Mike Koop, State Historic Preservation Office, Grants Office, 50 Sherburne Avenue, Saint Paul, Minnesota, 55155. The State will respond in writing, either approving or not approving the changes, and may amend the contract if deemed necessary. The City is aware that some changes may require approval by the National Park Service and agrees to submit any necessary changes as early as possible during the project period. Variations which are not known until the conclusion of the project may be submitted with the final Request for Reimbursement; however, the City understands that costs may be disallowed if changes are not approved. B. If any part of the budgeted federal grant funds will not be used, the City must notify the State at least sixty (60) days before the project's ending date. Failure of the City to notify the State may result in the loss of federal funds to the state, and may have an adverse effect on future applications for CLG funds by the City. 7.3 Waiver If the State fails to enforce any provision of this grant contract, that failure does not waive the provision or the State’s right to enforce it. 7.4 Grant Contract Complete This grant contract contains all negotiations and agreements between the State and the Grantee. No other understanding regarding this grant contract, whether written or oral, may be used to bind either party. 8 Liability 8.1 The City must indemnify, save, and hold the State, its agents, and employees harmless from any claims or causes of action, including attorney’s fees incurred by the State, arising from the performance of this grant contract by the City or the City’s agents or employees. This clause will not be construed to bar any legal remedies the City may have for the State's failure to fulfill its obligations under this grant contract. 8.2 The City will indemnify and save and hold the Department of the Interior harmless from any and all claims or causes of action arising from the performance of this project by the City. 9 Audit 9.1 State Audits Under Minn. Stat. § 16B.98, Subd.8, the City’s books, records, documents, and accounting procedures and practices of the City or other party relevant to this grant agreement or transaction are subject to examination by the State and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end of this grant agreement, receipt and approval of all final reports, or the required period of time to satisfy all state and program retention requirements, whichever is later. 9.2 Federal Audits A. For cities who expend $750,000 or more a year in Federal funds, the City must submit single or program-specific audits completed pursuant to Uniform Grant Guidance for all fiscal years that include the project period. These must be submitted to Mike Koop, State Historic Preservation Office, 50 Sherburne Avenue, Saint Paul, Minnesota 55155 within one hundred and twenty (120) days of their completion. B. The City agrees to maintain records to document any matching funds claimed as part of the project. The City further agrees to secure reasonable written proof of the value of Staff or Volunteer Labor, and for Donated Abbi Jo Wittman City of Stillwater Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 8 Materials contributed to the project. C. The City agrees that accounts and supporting documents relating to project expenditures will be adequate to permit an accurate and expeditious audit. An audit may be made at any time by the State, its designated representatives, or any applicable agency of the State of Minnesota 10 Government Data Practices and Intellectual Property 10.1 Government Data Practices The City and State must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by the State under this grant contract, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the City under this grant contract. The civil remedies of Minn. Stat. §13.08 apply to the release of the data referred to in this clause by either the City or the State. If the City receives a request to release the data referred to in this Clause, the City must immediately notify the State. The State will give the City instructions concerning the release of the data to the requesting party before the data is released. The City’s response to the request shall comply with applicable law 10.2. Intellectual Property Rights The State retains ownership of all intellectual property created with these grant funds. The State gives the City an unlimited license to use of all intellectual property created with these grant funds for authorized governmental purposes. 11 Workers’ Compensation The City certifies that it is in compliance with Minn. Stat. § 176.181, subd. 2, pertaining to workers’ compensation insurance coverage. The Grantee’s employees and agents will not be considered State employees. Any claims that may arise under the Minnesota Workers’ Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the State’s obligation or responsibility. 12 Publicity and Endorsement 12.1 Publicity Any publicity regarding the subject matter of this grant contract must identify the State as the sponsoring agency and must not be released without prior written approval from the State’s Authorized Representative. For purposes of this provision, publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the City individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this grant contract. All projects primarily funded by state grant appropriation must publicly credit the State of Minnesota, including on the City’s website when practicable. 12.2 Federal Funding A.Public Law 101-517, Title V, Section 511, states: When issuing statements, press releases, requests for proposals, bid solicitations and other documents describing projects or programs funded in whole or in part with Federal money, all grantees receiving Federal funds, including but not limited to State and local governments, shall clearly state (1) the percentage of the total costs of the program or project which will be financed with Federal money, (2) the dollar amount of Federal funds for the project or program, and (3) percentage and dollar amount of the total costs of the project or program that will be furnished by nongovernmental sources. B.The City agrees any publications, studies, reports, presentations, films, audio visual materials, exhibits, or other material prepared with grant assistance will contain an acknowledgment of HPF grant funds and nondiscrimination Abbi Jo Wittman City of Stillwater Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 9 policy as follows: "The activity that is the subject of this (type of publication) has been financed (in part/entirely) with Federal funds from the National Park Service, U. S. Department of the Interior. However, the contents and opinions do not necessarily reflect the views or policies of the Department of the Interior, nor does the mention of trade names or commercial products constitute endorsement or recommendation by the Department of the Interior.” "This program receives Federal financial assistance for identification and protection of historic properties. Under Title VI of the Civil Rights Act of 1964 and Section 504 of the Rehabilitation Act of 1973, the U. S. Department of the Interior prohibits discrimination on the basis of race, color, national origin, or disability in its federally assisted programs. If you believe you have been discriminated against in any program, activity, or facility as described above, or if you desire further information, please write to: Office for Equal Opportunity, U. S. Department of the Interior, National Park Service, 1849 C St., NW, Washington, D.C. 20240.” 12.3 Endorsement The Grantee must not claim that the State endorses its products or services. 13 Governing Law, Jurisdiction, and Venue Minnesota law, without regard to its choice-of-law provisions, governs this grant contract. Venue for all legal proceedings out of this grant contract, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 14 Termination 14.1 Termination by the State The State may immediately terminate this grant contract with or without cause, upon 30 days’ written notice to the Grantee. Upon termination, the Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed. 14.2 Termination for Cause The State may immediately terminate this grant contract if the State finds that there has been a failure to comply with the provisions of this grant contract, that reasonable progress has not been made or that the purposes for which the funds were granted have not been or will not be fulfilled. The State may take action to protect the interests of the State of Minnesota, including the refusal to disburse additional funds and requiring the return of all or part of the funds already disbursed. 14.3 Termination for Insufficient Funding The State may immediately terminate this grant contract if: (a)Funding for the Grant is withdrawn by the U.S. Department of Interior. (b) Or, if funding cannot be continued at a level sufficient to allow for the payment of the services covered here. Termination must be by written or fax notice to the City. The State is not obligated to pay for any services that are provided after notice and effective date of termination. However, the City will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed to the extent that funds are available. The State will not be assessed any penalty if the contract is terminated because of the decision of the Minnesota Legislature, or other funding source, not to appropriate funds. The State must provide the City notice of the lack of funding within a reasonable time of the State’s receiving that notice. 15 Data Disclosure Under Minn. Stat. § 270C.65, Subd. 3, and other applicable law, the Grantee consents to disclosure of its social security number, federal employer tax identification number, and/or Minnesota tax identification number, already provided to the State, to federal and state tax agencies and state personnel involved in the payment of state obligations. These identification numbers may be used in the enforce¬ment of federal and state tax laws which Abbi Jo Wittman City of Stillwater Printed On: 24 July 2019 SHPO Certified Local Government (CLG) Grant FY19 11 File Attachment Summary Applicant File Uploads No files were uploaded 633 SOUTH CONCORD STREET • SUITE 400 • SOUTH SAINT PAUL, MINNESOTA 55075 • 651-451-1831 • FAX 651-450-7384 OFFICE ALSO LOCATED IN SPOONER, WISCONSIN TIMOTHY J. KUNTZ DANIEL J. BEESON JAY P. KARLOVICH ANGELA M. LUTZ AMANN KORINE L. LAND DONALD L. HOEFT BRIDGET McCAULEY NASON PETER G. MIKHAIL TONA T. DOVE AARON S. PRICE DAVID L. SIENKO CASSANDRA C. WOLFGRAM DEBRA M. NEWEL CASSANDRA J. BAUTISTA MEMO TO: Mayor and City Council CC: Tom McCarty Bill Turnblad Kori Land FROM: Pete Mikhail DATE: July 26, 2019 RE: Stipulation for Shorty’s Taking and Lease Council previously authorized the condemnation of the Shorty’s property at 121 Chestnut Street East for the purpose of expanding public parking facilities. The City’s condemnation petition will be presented to the court on Friday, August 2. On the consent agenda for Tuesday, July 30, is an item seeking approval of the stipulation and lease, entitled “Stipulation Regarding Quick Take and Lease.” It now appears the City project to demo the Shorty’s property and install the expanded surface parking will not proceed before the 2020 construction season. Shorty’s is agreeing to waive objections to the taking, allowing the quick take to proceed now, in exchange for a leaseback allowing it to remain on the property through April 30, 2020. In short, we are making a typical agreement to allow the owner to remain on the property until we need it to start the project. This stipulation does not include any agreements regarding settlement of Shorty’s claims for just compensation or relocation. The City will proceed to make the same quick take payment it must make as a matter of course. (Minn. Stat. § 117.042 requires the City to pay its approved appraised value (i.e., what our appraisal says the property is worth) in order to take title.) And with or without a stipulation, the City is responsible for all property taxes accruing after the date we filed the petition with the court. In short, with respect to payment terms, there is nothing new in this stipulation. Memo To: Tom McCarty, City Administrator Sharon Provos, Finance Director From: Patty Kettles, Director Date: July 17, 2019 Subject: Stillwater, MN - Sewer Rate Study The City of Stillwater engaged Baker Tilly to conduct a comprehensive review and analysis of the City’s current sewer utility rates and fee structure. We have built a long-range financial proforma that allows us to assist the City in determining the impact of various changes to the current sewer revenues and expenditures, including capital outlay, on utility operations. The recommended rates project to provide sufficient revenue to cover anticipated operating and maintenance expenses, debt service including principal and interest, capital improvement plans, provide adequate cash flow to pay for current expenditures and an adequate level of cash reserves for operations and capital replacement . Historical Performance Our analysis began with a look at the Sewer Fund’s recent financial performance, paying particular attention to income levels and cash reserves. The Sewer Fund’s operating and net income has been negative in each of the past four fiscal years with fiscal year 2019 projecting a net loss of ($422,338). The Sewer Fund has not had a cash balance since 2016. The Sewer Fund has borrowed money from the Capital Projects Fund and the General Fund. Internally borrowed funds are projected to total $732,450 at the end of 2019. The historical performance of this fund is shown on the following page. City of Stillwater, Minnesota Sewer Rate Study July 17, 2019 Page 2 2015 2016 2017 2018 2019 Operating Revenues Actual Actual Actual Budget Budget Charges for Service 2,207,740 2,155,272 2,133,619 2,450,000 2,520,000 Other Revenue Total Operating Revenue 2,207,740 2,155,272 2,133,619 2,450,000 2,520,000 Operating Expenses Personnel Services 366,254 379,797 351,446 377,079 398,398 Supplies 26,769 18,838 16,253 43,350 47,500 Other Services and Charges 1,612,644 2,138,734 2,304,290 2,487,047 2,595,540 Miscellaneous Expenses 7,905 11,778 9,133 5,500 6,000 Depreciation 302,376 299,841 309,161 302,600 313,000 Total Operating Expenses 2,315,948 2,848,988 2,990,283 3,215,576 3,360,438 Operating Income (Loss)(108,208) (693,716) (856,664) (765,576) (840,438) Non Operating Revenues (Expenses) Investment Income 25,506 18,387 23,214 6,000 6,000 Other Income 143,332 330,747 450,428 677,340 412,100 Debt Interest Loss on Disposal of Capital Asset Total Non Operating Revenues (Expenses)168,838 349,134 473,642 683,340 418,100 Net Income (Loss) Before Transfers 60,630 (344,582) (383,022) (82,236) (422,338) Operating Transfers Transfers In Transfers (Out)(76,938) Total Operating Transfers (76,938) - - - - Net Income (Loss)(16,308) (344,582) (383,022) (82,236) (422,338) Beginning Cash & Investments 34,536 521,524 343,582 - - Net Income (16,308) (344,582) (383,022) (82,236) (422,338) Depreciation 302,376 299,841 309,161 302,600 313,000 Acquisition and Construction of Assets (3,212) (323,162) (463,547) (95,900) Receipt of Loan from Other Funds 274,070 253,140 205,238 Non-Cash Trans. Affecting Financial Position 73,938 73,938 Adjustment to Accruals 204,132 189,961 (80,244) (473,504) - Ending Cash Balance 521,524 343,582 - - - Sewer Fund Historical Financial Performance City of Stillwater, Minnesota Sewer Rate Study July 17, 2019 Page 3 Assumptions In our projections of future performance, we used a number of assumptions based on historical trends, information provided by the City, discussions with the City, and our significant experience in preparing rate studies. These assumptions included: • 1% annual growth in Sewer consumption over the planning period • Capital projects included in the 2020-2024 Capital Improvement Plan • The Sewer Fund will repay the internal loans over a three-year period, beginning in 2021 • No major developments or expansion of service during the 10-year planning period • Operating expenses would increase 3% - 5% each year based on historical trends • An 8.6% increase in fees charged by Met Council in 2020 • Cash reserves would earn 1.5% interest each year • No outstanding sewer debt • New sewer debt issued for a term of 10 years at 4% Cash Reserves Baker Tilly’s clients often ask about the amount of cash that should be available in their utility funds. Utility funds need sufficient cash to pay current expenses, together with principal and interest on outstanding bonds. This would typically require each utility fund to have a minimum of three months of anticipated operating expenses and one year’s total debt service in cash at the end of each year. However, this does not provide any level of cash reserves for unforeseen expenses, emergencies, or to cover any sho rtfalls in the budget. The amount of cash reserves that a utility fund should have is dependent on a number of factors, including: • Reserves that are legally required • Variability of the annual revenue stream • Variability in annual expenses • Age and condition of fixed assets • Anticipated future capital needs − Capital improvement plan − Regulatory compliance − Asset renewal and replacement • Replacement reserve • Tolerance for risk • Number of relatively large customers • Credit rating considerations Unfortunately, there are no prescribed formulas, and the amount of reserves varies considerably. We encourage the City to maintain a minimum cash balance in the Sewer Fund of three months of anticipated operating expenses at the end of each fiscal year and one year’s debt service at the end of each fiscal year. City of Stillwater, Minnesota Sewer Rate Study July 17, 2019 Page 4 Sewer Fund Projections Because the Sewer Fund is projected to have little to no cash at the end of 2019, we have included two scenarios; the first assumes the City will need to bond for the major capital projects (Lift Station conversions) and the second assumes bonding only in 2020 and then rates will finance the remaining years’ capital projects. The following pages show our projected pro forma and cash position in the Fund with our recommended rate increases of: Scenario 1 – Debt issued annually 2020-2024 Rate Increases – 15% in 2020, 15% in 2021 and 3% annually thereafter Scenario 2 – Debt issued in 2020 Rate Increases - 18% in 2020, 18% in 2021 and 3% annually thereafter The rate increases assume both the minimum charge and volume charges will be increased. The increases are required to fund operations, increase the cash position of the fund and to maintain the recommended level of cash reserves over the next 10 years. The detailed financial projections are shown on the following pages followed by an example of a monthly bill for an average residential sewer customer using 15,000 gallons/quarter. The average bill is projected to increase $10.65/quarter - $12.78/quarter in 2020, depending upon which financing Scenario is chosen. The City should establish the user rates for a three -to five-year period. The rates should be reviewed on an annual basis concurrent with the development of the following year’s budget. The City will need to monitor the performance of the Sewer Fund and make any necessary adjustments based upon its actual performance and on the actual construction costs of the anticipated capital improvements. City of Stillwater, Minnesota Sewer Rate Study July 17, 2019 Page 5 Projected Rate Adjustment Projected Change 15.00%15.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 2020-2029 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Operating Revenues Charges for Service 1.00%2,520,000 2,926,980 3,399,687 3,536,695 3,679,223 3,827,496 3,981,744 4,142,209 4,309,140 4,482,798 4,663,455 Other Revenue 0.00%- - - - - - - - - - - Total Operating Revenue 2,520,000 2,926,980 3,399,687 3,536,695 3,679,223 3,827,496 3,981,744 4,142,209 4,309,140 4,482,798 4,663,455 Operating Expenses Personnel Services 3.00%398,398 410,350 422,660 435,340 448,400 461,852 475,708 489,979 504,679 519,819 535,414 Supplies 5.00%47,500 49,875 52,369 54,987 57,737 60,623 63,655 66,837 70,179 73,688 77,372 Other Services and Charges 3.50%2,300,540 2,381,059 2,464,396 2,550,650 2,639,923 2,732,320 2,827,951 2,926,929 3,029,372 3,135,400 3,245,139 WAC/SAC Remittance 0.00%295,000 250,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Miscellaneous Expenses 1.00%6,000 6,060 6,121 6,182 6,244 6,306 6,369 6,433 6,497 6,562 6,628 Existing Depreciation 313,000 306,740 300,605 294,593 288,701 282,927 277,269 271,723 266,289 260,963 255,744 New Depreciation - 4,100 23,900 65,193 77,487 95,670 80,670 83,470 86,570 85,527 89,127 Total Operating Expenses 3,360,438 3,408,184 3,470,051 3,606,945 3,718,491 3,839,699 3,931,621 4,045,372 4,163,586 4,281,959 4,409,423 Operating Income (Loss)(840,438) (481,204) (70,364) (70,251) (39,268) (12,203) 50,123 96,837 145,554 200,839 254,031 Non Operating Revenues (Expenses) Investment Income 1.50%6,000 - 1,952 3,602 6,505 9,388 15,999 22,697 30,156 38,347 47,394 Other Income 117,100 117,100 117,100 117,100 117,100 117,100 117,100 117,100 117,100 117,100 117,100 WAC/SAC 295,000 250,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Debt Interest - Existing - - - - - - - - - - - Debt Interest - New - (20,000) (28,334) (35,769) (46,268) (55,461) (49,296) (42,884) (36,215) (29,280) Total Non Operating Revenues (Expenses)418,100 367,100 299,052 292,368 287,836 280,220 277,638 290,502 304,372 319,232 335,214 Net Income (Loss) Before Transfers (422,338) (114,104) 228,688 222,117 248,568 268,017 327,761 387,338 449,926 520,071 589,246 Operating Transfers Transfers In 205,238 Repayment of Internal Borrowing - (244,149) (244,149) (244,149) Total Operating Transfers 205,238 - (244,149) (244,149) (244,149) - - - - - - Net Income (Loss)(217,100) (114,104) (15,461) (22,032) 4,419 268,017 327,761 387,338 449,926 520,071 589,246 Calculate Scenario 1 - Sewer Utility – Financial Projections – Debt Issued Annually 2020-2024 City of Stillwater, Minnesota Sewer Rate Study July 17, 2019 Page 6 Projected Rate Adjustment Projected Change 15.00%15.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 2020-2029 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Beginning Cash & Investments - - 130,136 240,135 433,655 625,840 1,066,579 1,513,145 2,010,377 2,556,451 3,159,632 Net Income (217,100) (114,104) (15,461) (22,032) 4,419 268,017 327,761 387,338 449,926 520,071 589,246 Depreciation 313,000 310,840 324,505 359,786 366,188 378,597 357,939 355,193 352,859 346,490 344,870 Acquisition and Construction of Assets (95,900) (566,600) (407,400) (330,100) (440,900) (435,700) (85,000) (85,000) (90,000) (90,000) (95,000) Proceeds from New Long-Term Debt - 500,000 250,000 250,000 350,000 350,000 - - - - - Payments on New Long-Term Debt - (41,645) (64,134) (87,522) (120,175) (154,134) (160,299) (166,711) (173,379) (180,315) Payments on Existing Long-Term Debt - - - - - - - - - - - Ending Cash Balance - 130,136 240,135 433,655 625,840 1,066,579 1,513,145 2,010,377 2,556,451 3,159,632 3,818,434 Minimum Cash Balance For ongoing operations 3 761,860 774,336 786,386 811,790 838,076 865,275 893,421 922,545 952,682 983,867 1,016,138 For debt service 12 - 61,645 92,468 123,291 166,443 209,595 209,595 209,595 209,595 209,595 209,595 Minimum Cash Balance Target 761,860 835,981 878,855 935,081 1,004,519 1,074,870 1,103,015 1,132,139 1,162,276 1,193,462 1,225,733 Amount Over (Under) Target (761,860) (705,845) (638,720) (501,426) (378,679) (8,291) 410,129 878,238 1,394,175 1,966,170 2,592,701 Calculate Sewer Rates 2019 2020 2021 2022 2023 2024 2026 2027 2028 2029 Proposed Rate Increase Billed Quarterly 0 - 10,000 gallons (minimum charge)43.00$ 49.45$ 56.87$ 58.57$ 60.33$ 62.14$ 65.93$ 67.90$ 69.94$ 72.04$ >10,000 gallons - per 1,000 gallons 5.60 6.44 7.41 7.63 7.86 8.09 8.59 8.84 9.11 9.38 15,000 gal/quarter User 2019 2020 2021 2022 2023 2024 2026 2027 2028 2029 Fixed Charge 43.00$ 49.45$ 56.87$ 58.57$ 60.33$ 62.14$ 65.93$ 67.90$ 69.94$ 72.04$ Volume Charge 28.00$ 32.20$ 37.03$ 38.14$ 39.29$ 40.46$ 42.93$ 44.22$ 45.54$ 46.91$ Total Quarterly Sewer Bill 71.00$ 81.65$ 93.90$ 96.71$ 99.62$ 102.60$ 108.85$ 112.12$ 115.48$ 118.95$ 3.00%3.00%3.00%3.00%3.00%NA 15.00%15.00%3.00%3.00% Scenario 1 - Sewer Utility - Projected Cash and Reserves Scenario 1 – Rate Recommendations City of Stillwater, Minnesota Sewer Rate Study July 17, 2019 Page 7 Projected Rate Adjustment Projected Change 18.00%18.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 2020-2029 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Operating Revenues Charges for Service 1.00%2,520,000 3,003,336 3,579,376 3,723,625 3,873,687 4,029,796 4,192,197 4,361,143 4,536,897 4,719,734 4,909,939 Other Revenue 0.00%- - - - - - - - - - - Total Operating Revenue 2,520,000 3,003,336 3,579,376 3,723,625 3,873,687 4,029,796 4,192,197 4,361,143 4,536,897 4,719,734 4,909,939 Operating Expenses Personnel Services 3.00%398,398 410,350 422,660 435,340 448,400 461,852 475,708 489,979 504,679 519,819 535,414 Supplies 5.00%47,500 49,875 52,369 54,987 57,737 60,623 63,655 66,837 70,179 73,688 77,372 Other Services and Charges 3.50%2,300,540 2,381,059 2,464,396 2,550,650 2,639,923 2,732,320 2,827,951 2,926,929 3,029,372 3,135,400 3,245,139 WAC/SAC Remittance 0.00%295,000 250,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Miscellaneous Expenses 1.00%6,000 6,060 6,121 6,182 6,244 6,306 6,369 6,433 6,497 6,562 6,628 Existing Depreciation 313,000 306,740 300,605 294,593 288,701 282,927 277,269 271,723 266,289 260,963 255,744 New Depreciation - 4,100 23,900 65,193 77,487 95,670 80,670 83,470 86,570 85,527 89,127 Total Operating Expenses 3,360,438 3,408,184 3,470,051 3,606,945 3,718,491 3,839,699 3,931,621 4,045,372 4,163,586 4,281,959 4,409,423 Operating Income (Loss)(840,438) (404,848) 109,325 116,679 155,196 190,097 260,576 315,771 373,311 437,775 500,516 Non Operating Revenues (Expenses) Investment Income 1.50%6,000 - 3,097 3,710 6,131 7,599 13,540 25,578 38,583 52,536 67,570 Other Income 117,100 117,100 117,100 117,100 117,100 117,100 117,100 117,100 117,100 117,100 117,100 WAC/SAC 295,000 250,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Debt Interest - Existing - - - - - - - - - - - Debt Interest - New - (20,000) (18,334) (16,602) (14,800) (12,926) (10,977) (8,951) (6,843) (4,651) Loss on Disposal of Capital Asset - Total Non Operating Revenues (Expenses)418,100 367,100 300,197 302,476 306,629 309,899 317,714 331,700 346,732 362,793 380,019 Net Income (Loss) Before Transfers (422,338) (37,748) 409,522 419,155 461,825 499,997 578,290 647,471 720,043 800,568 880,535 Operating Transfers Transfers In 205,238 Repayment of Internal Borrowing - (244,149) (244,149) (244,149) Total Operating Transfers 205,238 - (244,149) (244,149) (244,149) - - - - - - Net Income (Loss)(217,100) (37,748) 165,373 175,006 217,675 499,997 578,290 647,471 720,043 800,568 880,535 Calculate Scenario 2 - Sewer Utility – Financial Projections – Debt Issued in 2020 City of Stillwater, Minnesota Sewer Rate Study July 17, 2019 Page 8 The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly Virchow Krause, LLP, an accounting firm. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2019 Baker Tilly Municipal Advisors, LLC Projected Rate Adjustment Projected Change 18.00%18.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 2020-2029 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Beginning Cash & Investments - - 206,492 247,325 408,706 506,625 902,673 1,705,182 2,572,179 3,502,386 4,504,641 Net Income (217,100) (37,748) 165,373 175,006 217,675 499,997 578,290 647,471 720,043 800,568 880,535 Depreciation 313,000 310,840 324,505 359,786 366,188 378,597 357,939 355,193 352,859 346,490 344,870 Acquisition and Construction of Assets (95,900) (566,600) (407,400) (330,100) (440,900) (435,700) (85,000) (85,000) (90,000) (90,000) (95,000) Proceeds from New Long-Term Debt - 500,000 - - - - - - - - - Payments on New Long-Term Debt - (41,645) (43,311) (45,044) (46,845) (48,719) (50,668) (52,695) (54,803) (56,995) Payments on Existing Long-Term Debt - - - - - - - - - - - Ending Cash Balance - 206,492 247,325 408,706 506,625 902,673 1,705,182 2,572,179 3,502,386 4,504,641 5,578,051 Minimum Cash Balance For ongoing operations 3 761,860 774,336 786,386 811,790 838,076 865,275 893,421 922,545 952,682 983,867 1,016,138 For debt service 12 - 61,645 61,645 61,645 61,645 61,645 61,645 61,645 61,645 61,645 61,645 Minimum Cash Balance Target 761,860 835,981 848,032 873,435 899,721 926,921 955,066 984,190 1,014,327 1,045,513 1,077,784 Amount Over (Under) Target (761,860) (629,489) (600,707) (464,730) (393,096) (24,248) 750,116 1,587,988 2,488,059 3,459,128 4,500,267 Calculate Sewer Rates 2019 2020 2021 2022 2023 2024 2026 2027 2028 2029 Proposed Rate Increase Billed Quarterly 0 - 10,000 gallons (minimum charge)43.00$ 50.74$ 59.87$ 61.67$ 63.52$ 65.43$ 69.41$ 71.49$ 73.64$ 75.85$ >10,000 gallons - per 1,000 gallons 5.60 6.61 7.80 8.03 8.27 8.52 9.04 9.31 9.59 9.88 15,000 gal/quarter User 2019 2020 2021 2022 2023 2024 2026 2027 2028 2029 Fixed Charge 43.00$ 50.74$ 59.87$ 61.67$ 63.52$ 65.43$ 69.41$ 71.49$ 73.64$ 75.85$ Volume Charge 28.00$ 33.04$ 38.99$ 40.16$ 41.36$ 42.60$ 45.20$ 46.55$ 47.95$ 49.39$ Total Quarterly Sewer Bill 71.00$ 83.78$ 98.86$ 101.83$ 104.88$ 108.03$ 114.61$ 118.04$ 121.59$ 125.23$ 3.00%3.00%3.00%3.00%3.00%NA 18.00%18.00%3.00%3.00% Scenario 2 - Sewer Utility - Projected Cash and Reserves Scenario 2 – Rate Recommendations ` TO: Mayor & Councilmembers FROM: Bill Turnblad, Community Development Director DATE: July 24, 2019 RE: Parking capacity study BACKGROUND This past winter the Downtown Parking Commission and City Council approved the scope of work for a Downtown parking capacity study. Subsequently an RFP was written and distributed to a half dozen consulting firms with expertise in municipal parking systems. We received two proposals. One from the Hoisington Koegler Group (HKGi) and the other from Stantec. COMMENTS The Downtown Parking Commission has reviewed both proposals. Each has strengths. The Stantec proposal is from an international firm with a depth and breadth of experience and expertise that would be expected from a large firm. HKGi is a smaller firm with strong planning and implementation experience throughout Minnesota and the region. HKGi also has the advantage of familiarity with Downtown Stillwater and the community that has been gained through work on the current Downtown Plan and the 2040 Comprehensive Plan. Both firms have the resources and experience necessary to excel at the parking capacity study. Stantec has more experience in implementation of various parking system elements. And with the size of their staff, Stantec is able to employ staff that specialize in municipal parking systems. But, the goal of the study is not to implement, rather to conduct the study only. So, Stantec’s size and specialization is less of a deciding factor for this study. There is one major difference between the two proposals. This is the price for completing the study. Stantec proposes a not to exceed price of $78,000 and HKGi proposes $25,000. RECOMMENDATION The Downtown Parking Commission and staff recommend selecting HKGi to conduct the study. Attachments: Proposal from Hoisington Koegler Proposal from Stantec bt Prepared by Hoisington Koegler Group Inc. June 28, 2019 PROPOSAL FOR PLANNING SERVICES DOWNTOWN PUBLIC PARKING SYSTEM EFFICIENCY STUDY STILLWATER, MINNESOTA DOWNTOWN VICTORIA CONTENTS 01 PROJECT UNDERSTANDING 1 02 PROFESSIONAL QUALIFICATIONS 2 03 RELEVANT EXPERIENCE 7 04 FEE QUOTATION 17 PARKING SYSTEM EFFICIENCY STUDY PROPOSALii Hoisington Koegler Group Inc. Landscape Architecture Planning Urban Design 123 N. 3rd Street, Suite 100 Minneapolis, MN 55401 612-338-0800 COLLABORATE LISTEN EXPLORE CREATE HKGi believes that design, when inspired by the character of the people and the land, can create a unique and identifiable sense of community. June 28, 2019 Bill Turnblad, Community Development Director City of Stillwater 216 North Fourth Street Stillwater, MN 55082 Re: HKGi Proposal for the Parking System Efficiency Study – Downtown Public Parking System Dear Mr. Turnblad, We are pleased to submit this proposal to lead a downtown parking study with the assistance of the Stillwater’s Downtown Parking Commission. We understand this study will need to discover innovative parking solutions and strategies. We also understand the study will need to focus on low-cost/high-benefit solutions that balance today and tomorrow’s parking needs for all users (e.g., employees, customers, residents, and eventgoers). HKGi will build on our past experience in the community (e.g., Downtown Stillwater Plan & 2040 Comprehensive Plan) to help streamline this effort. This effort will be led by Lance Bernard, who has over 15 years of planning experience and parking expertise. Lance has been recognized as a leader in developing district-wide parking models by sharing his experience at local and national speaking engagements. We’ve also had the opportunity to share our experience and examples of today’s emerging parking practices with the Stillwater Parking Commission in January of 2019. Lance will be supported by a team of professional planners and landscape architects who specialize in parking studies, multimodal plans, and urban design principles. Bryan Harjes will serve as the Project Principal ensuring Lance has the staff and resources available to complete this project on-time and within budget. Bryan will provide additional support in developing parking solutions that will enhance the urban form, while protecting Downtown Stillwater’s historical context and environmental features. Our Project Team and qualifications are highlighted in the attached materials. Combined, our team and experience touch on all aspects (e.g., parking management, urban design, wayfinding, zoning code development, and public engagement) that need to be considered when developing a parking study that leads to realistic and achievable results. We look forward to the opportunity to work with Stillwater on this important project. Please feel free to contact us if you have any questions. Lance can be reached at 612.252.7133 or via email at lance@hkgi.com. Sincerely, Lance Bernard Bryan Harjes Planner - Project Manager Vice President Hoisington Koegler Group, Inc. Hoisington Koegler Group, Inc. STILLWATER, MINNESOTA iii 01. PROJECT UNDERSTANDING Project Understanding We understand this project will need to address current and future parking demand, while setting the stage for long-term parking initiatives that minimize major capital expenditures. Through this planning process the HKGi team and the City will focus on opportunities for efficiencies and future parking needs associated with events and employee parking (Task 4.1 & 4.2). Balancing these needs will require a district- wide parking approach. A district-wide parking approach uses a combination of strategies to maximize the existing parking supply, while reducing the demand to build additional spaces. This approach is commonly applied in downtown settings to encourage walkability, foster economic growth, and strengthen the urban form. The HKGi team will compare Downtown’s Stillwater’s current district-wide parking approach to other peer communities (Task 3.3). Findings from this assessment will help identify any changes to Downtown Stillwater’s parking requirements, pricing structure, and financing mechanisms (Task 3.2 & 4.4). This review will help determine if there are any changes that need to occur with the City’s Enterprise Fund to better align with industry standards (Task 4.3). We also understand this study will need to balance the current parking demand with future development initiatives (Task 3.5). An initial review of the City’s utilization counts (Task 3.1) demonstrate areas of potential surplus, which presents an opportune time to determine its ability to support economic development initiatives. For example, a surplus can be used to help address a development’s parking needs, offsetting their development costs that would be required to build additional parking. This can result in significant cost savings as construction costs have risen in recent years. A new parking structure can range between $20,000 and $30,000+ per stall, and $100 to $150 per stall to maintain and operate on a monthly basis. These costs help further demonstrate the importance of maximizing the existing parking supply before building a parking facility to solely accommodate a new development. To help achieve a better understating of Downtown Stillwater’s parking surplus, a customized “Parking Generation Model” will be created for evaluating future redevelopment scenarios (Task 3.5). This tool will also help the City evaluate the district’s parking demand and the thresholds for when additional parking is needed. Overall, this effort will be organized as a collaborative process involving Stillwater staff and the Parking Commission (Task 1 & 2). We also understand the study process must lead to a plan that is embraced and supported by the business community. In that respect, we will foster our existing relationships with community members from past planning efforts (e.g., Stillwater Downtown Plan, Comprehensive Plan, and day- to-day planning services) to reach a consensus on recommendations and strategies. The end product will include an action plan and tools (Task 4.4 & 5) for Stillwater staff and the Parking Commission to manage and monitor Downtown Stillwater’s parking over time. At the end of this process, we will work with City staff and the Planning Commission to scope a second phase of the study that focuses on next steps. Project Scope and Deliverables HKGi understands and recognizes the prescribed scope and deliverables listed in the RFQ: Task 1 - Project Coordination involving weekly check-ins with City Staff Task 2 - Engagement with the Parking Commission consisting of three meetings Task 3 - Exploration including: »data collection; »review of current regulations and financial policies; »review of peer community downtowns; employee survey; »creation of a parking generation model. »Deliverables -Base maps -Findings memorandum -On-line survey -Parking generation model in Excel Task 4 - Strategies and Recommendations for: »Event Parking; »Employee Parking; »Enterprise Fund; »Parking Framework »Deliverables -Strategies and recommendations memorandum -Financial model in Excel Task 5 - Final Deliverables consisting of »Final report »Presentation of study’s findings to City Council PARKING SYSTEM EFFICIENCY STUDY PROPOSAL1 02. PROFESSIONAL QUALIFICATIONS Key Personnel The HKGi team brings a wide variety of planning experience to this project, and the staff members we have assigned to this project bring a complementary blend of skills, talents, and interests that will enrich the planning process and deliverables. Lance Bernard - Project Manager Our diverse team will be led by Lance Bernard, Planner & Project Manager. Lance brings over 15 years of planning experience, and recently led the Stillwater’s Comprehensive Plan Update. Beyond his comprehensive planning experience, Lance has been recognized as a leader in developing parking studies, asset management plans, and financial plans for various agencies. His approach has embraced district- wide parking solutions that maximize parking efficiencies, while balancing parking needs with redevelopment initiatives. Lance will be the day-to-day point of contact and will ensure that the City of Stillwater receives outstanding client service. Bryan Harjes, PLA, LEED AP - Project Principal As Vice President of HKGi, Bryan will serve as the Project Principal, ensuring that Lance has the staff and resources available to complete this project on time and within budget. Bryan will provide additional support in developing parking solutions that will enhance the urban form, while preserving Downtown Stillwater’s historical context and environmental features. Bryan is familiar with Downtown Stillwater’s planning and design context through his work on the recent Downtown chapter of the Comprehensive Plan Update and through his park concept planning work for a parcel just north of downtown. Bryan has also contributed urban design expertise to downtown planning projects in Red Wing, Victoria, Chaska, Osseo, Hutchinson, and many other communities. Jesse Thornsen, AICP, LEED Green Assoc. - Transportation Planner Jesse will be leading the research efforts and providing the project team with data collection and GIS mapping support. Jesse is interested in mobility and transportation issues and has recently provided planning expertise to a parking ordinance in St. Louis Park, the new Bike-Ped Plan for Farmington, and a pedestrian and bicycle funding evaluation for the Metropolitan Council. He is familiar with Stillwater’s planning context through his contributions to the Comprehensive Plan Update. Jesse will bring a user-friendly approach to ensuring that the study helps the City meet the mobility and access needs for all of downtown’s users (e.g., vehicles, delivery trucks, pedestrians, and bicycles). Beth Richmond - Planner Beth will lead the evaluation of the City’s zoning code and ordinance to determine if any modifications need to be made based on the study’s findings. Beth provides general planning services and is involved in zoning ordinance revisions in several communities. From this experience she will be able to offer insight on how similar communities are approaching their parking ordinances. We have included full resumes for each staff member assigned to this project on the following pages. DOWNTOWN OSSEO DOWNTOWN BUFFALO STILLWATER, MINNESOTA 2 <Align image to this guide PROFESSIONAL QUALIFICATIONS Years of Experience: 15 Education »B.S. Community Development/ Urban Affairs, St. Cloud State University Memberships/Affiliations »Legislative and Law Co-Chair - Minnesota Chapter of the American Planning Association »Past President for the Minnesota Chapter of the American Planning Association »Past Treasurer for the Minnesota Chapter of the American Planning Association »Past Conference Chair for the Minnesota Chapter of the American Planning Association Key Note Speaking Engagements »Shared Parking: How Does it Work? – Railvolution Conference, Denver, Colorado (2017) »TOD and Districtwide Parking Forum –Metro Transit (2016) »Comprehensive Planning and Public Health Community Workshop – City of Eau Claire, Wisconsin (2013) »Balancing and Managing Your Parking Needs - APA MN Conference (2019) With a broad portfolio of planning experience, Lance brings a passion for community and transportation planning to HKGi, as well as established relationships with communities and agencies. The breadth of Lance’s work has touched on all aspects of planning, including comprehensive plans, long-range transportation plans, parking studies, and downtown master plans. For several years Lance has worked to develop an outstanding portfolio of parking- and transportation-related planning projects. His depth and breadth of knowledge has enabled him to provide clients with unique planning services that integrate transportation-related practices with urban and land use planning methods. Lance’s perspective and understanding about the interaction between community and transportation planning enables clients to pursue transportation strategies that can enhance both livability and economic development initiatives. In recent years, Lance has been recognized as a leader in developing grants, asset management plans and financial plans for various agencies. His approach has helped his clients recognize their asset management needs, while aligning those needs with innovative funding mechanisms. In the last five years, Lance has helped his clients secure over $250 million in grant dollars. Parking Studies Experience »Historic Walker-Lake District Parking Study, St. Louis Park, MN »Downtown Victoria, MN »Parking Ordinance Revisions, St. Francis, MN »Development Review, Lindstrom, MN »Downtown Duluth and Canal Park, Duluth, MN »*Hagfors Center for Science, Business and Religion, Augsburg College »*Chemistry and Advanced Materials Science Building (UMD Parking Study), University of Minnesota Duluth »*Selby-Western Neighborhood, Saint Paul, MN »*Residential Parking Permit Review, Saint Paul, MN »*Towerside Innovation District (TOD Parking Framework) , Metro Transit »*Downtown Prior Lake, MN »*Downtown Willmar, MN »*Fort Snelling, Minnesota Historical Society Other Relevant Planning Experience »Comprehensive Plan | Stillwater, MN »Before and After Study (Pedestrian and Bicycle Funding Evaluation) | Metropolitan Council »Regional Solicitation Impact Study | Metropolitan Council »*Local Road Research Board System Preservation Guide | MnDOT »Comprehensive Plan (Multimodal Elements) | Richfield, MN »Comprehensive Plan (Multimodal Elements) | Waukee, Iowa »*Long Range Transportation Plan | Stearns County, MN »*Complete Streets Check-List | Wadena, MN Lance Bernard Project Manager | 612.252.7133 | lance@hkgi.com PARKING SYSTEM EFFICIENCY STUDY PROPOSAL3 <Align image to this guide PROFESSIONAL QUALIFICATIONS Years of Experience: 20 Education »Master of Landscape Architecture - University of Minnesota »Bachelor of Environmental Design - University of Minnesota Registration »Landscape Architect, Minnesota, License No. 42954 Memberships/Affiliations »Urban Land Institute (ULI) »Sensible Land Use Coalition »Minnesota Design Team (Houston, MN) Awards »2015 ACEC-MN Engineering Excellence Honor Award - Buffalo Commons, Buffalo, MN »2010 Preservation Award - Minnesota Preservation Alliance - Red Wing Downtown Action Plan »2003 APA-MN Award for an Outstanding Plan - Hutchinson Downtown Revitalization Master Plan Downtown Redevelopment Planning and Design Experience »Downtown Planning | Stillwater, MN »Downtown Vision Update | Chanhassen, MN »Downtown Master Plan | Chaska, MN »City Square West Redevelopment Plan | Chaska, MN »East Town Small Area Plan | Excelsior, MN »Downtown Redevelopment Plan | Farmington, MN »Marketplace Redevelopment Concepts | Hermantown, MN »Downtown Revitalization Master Plan | Hutchinson, MN »Downtown Action Plan | Hutchinson, MN »Downtown Development Guide | Lakeville, MN »Highway 7 & 101 Village Center Study | Minnetonka, MN »Redevelopment Master Plan | North St. Paul, MN »Redevelopment Area Planning | Onalaska, WI »Downtown Revitalization Master Plan | Osseo, MN »Downtown Action Plan | Red Wing, MN »Penn Avenue Revitalization Plan | Richfield, MN »Downtown Master Plan | St. Francis, MN »Downtown Revitalization Master Plan | Victoria, MN »Downtown Commons Plaza and Streetscape Design | Buffalo, MN »Federal Reserve Parking Facility Site Planning and Design | Minneapolis, MN »Complete Streets Study | Red Wing, MN »Downtown West Infrastructure Improvements | Victoria, MN »Wayfinding and Signage Master Plan | Hutchinson, MN »Gate, Wayfinding and Signage Plan | Duluth, MN As a principal with HKGi Bryan has provided leadership on a broad range of planning and design projects for public sector clients, including a wide range of downtown redevelopment planning and design projects. His involvement in numerous award-winning projects attests to his expertise and creativity as an urban designer, and his leadership consistently results in design solutions that incorporate client and community needs, enhance connectivity, promote sustainability, and are economically viable. Bryan has worked with the City of Stillwater on recent downtown planning initiatives and is familiar with some of the new opportunities and challenges that Downtown Stillwater faces due to recent infrastructure changes. He will be able to augment his knowledge about Downtown Stillwater with lessons he has learned from his downtown planning and urban design experience in communities such as Chaska, Excelsior, Onalaska, Victoria, and Red Wing, among others. Bryan Harjes PLA, LEED AP Vice President | 612.252.7124 | bryan@hkgi.com STILLWATER, MINNESOTA 4 <Align image to this guide PROFESSIONAL QUALIFICATIONS Jesse Thornsen AICP, LEED Green Assoc. Planner | 612.252.7129 | jesse@hkgi.com Years of Experience: 6 Education »B.S. Community and Regional Planning – Iowa State University, 2012 Registration »American Institute of Certified Planners – Cert. #028951 »LEED Green Associate – Cert. #10733040 Professional Development »Transportation Research Board Annual Meeting - 2018 »MnDOT Complete Streets Workshop - 2018 Jesse is a certified planner whose broad project experience includes comprehensive planning, transportation planning, roadway reconfiguration, master planning, subdivision platting, and planned development ordinance creation. Jesse’s professional interest in transportation and mobility planning has enabled him to build a strong base of knowledge that he can draw on in his related planning work. He emphasizes a user-friendly approach and strives to ensure that streets and communities can meet their mobility and access needs while providing safe, inviting, economically productive, and healthy transportation systems. Jesse also brings advanced graphic design and communication skills to his project work. He seeks to reduce the communication barriers between local government and community stakeholders through his ability to translate ideas, data, and processes into visually compelling graphics. Transportation Planning Experience »Historic Walker Lake District Parking Ordinance | St. Louis Park, MN »Bike-Ped Plan | Farmington, MN »Metropolitan Council Before and After Study (Pedestrian and Bicycle Funding Evaluation) | Minneapolis-St. Paul Region, MN »Redevelopment Master Plans | Onalaska, WI »Downtown Master Plan | St. Francis, MN »Uniform Development Code/Zoning Ordinance Update | Onalaska, WI »*SH 146 Corridor Subregional Transportation Initiative | Baytown, TX »*Houston Bike Plan | Houston, TX »*US 290 Value Capture Study | Houston Region, TX »*H-GAC Pedestrian Evaluation Tool | Houston-Galveston Region, TX »*H-GAC Bicycle and Pedestrian Documentation | Houston-Galveston Region, TX »*H-GAC Regional Parking/Mobility Study | Houston-Galveston Region, TX »*White Oak Village Trail Oriented Development | Houston, TX »*SH 249 Access Management Study | Houston, TX »*West Houston Mobility Study | Houston, TX »*Parking Variance Application | Houston, TX Comprehensive Planning Experience »Comprehensive Plan | Stearns County, MN »Comprehensive Plan | Columbia Heights, MN »Comprehensive Plan | White Bear Lake, MN »Comprehensive Plan | Johnston, IA »Comprehensive Plan | Lindström, MN »Comprehensive Plan | Inver Grove Heights, MN »Comprehensive Plan | Kasson, MN »Comprehensive Plan | Maplewood, MN »Comprehensive Plan | Red Wing, MN »Comprehensive Plan | South St. Paul, MN »Comprehensive Plan | Stillwater, MN PARKING SYSTEM EFFICIENCY STUDY PROPOSAL5 <Align image to this guide PROFESSIONAL QUALIFICATIONS Beth is a planner and a recent graduate of the University of Wisconsin – Madison’s Department of Planning & Landscape Architecture. As a graduate student, Beth worked for the University of Wisconsin-Extension’s Local Government Center. Some of her project-related experience there included analyzing survey results and Census data for several comprehensive plan updates, completing a land use analysis for the Sauk Prairie region’s Water Street Visioning Plan, and creating best practice guidelines for infill and redevelopment in the City of Middleton. At HKGi, she provides general planning services to several municipal clients. In addition to general planning services, Beth assists with comprehensive planning, grant writing, and zoning ordinance writing and amendments. In her planning services work, Beth frequently reviews development proposals and has to understand how zoning ordinances and development impact or influence one another. Parking and urban design guidelines are typically issues that she has to address and interpret in her work. She has provided planning services for Stillwater in the recent past, and her downtown planning experience includes work in Victoria and St. Francis. Beth Richmond Planner | 612.252.7127 | beth@hkgi.com Planning Project Experience »Comprehensive Plan | Benton County, MN »General Planning Services | Bondurant, IA »Active Living Grant Writing | Dakota County, MN »Comprehensive Plan | Gaylord, MN »Housing Study | Grand Marais, MN »Comprehensive Plan | Greenfield, MN »General Planning Services | Greenfield, MN »Zoning Ordinance Update | Kasson, MN »General Planning Services | Lindström, MN »General Planning Services | Medicine Lake, MN »General Planning Services | Mound, MN »Uniform Development Code/Zoning Ordinance | Onalaska, WI »Comprehensive Plan | South St. Paul, MN »Comprehensive Plan | St. Francis, MN »Shape Stearns 2040 Comprehensive Plan | Stearns County, MN »General Planning Services | St. Francis, MN »General Planning Services | Stillwater, MN »General Planning Services | Victoria, MN »Comprehensive Plan | White Bear Lake, MN Education »Master of Urban and Regional Planning - University of Wisconsin-Madison »B.A., Political Science - College of St. Benedict (MN) STILLWATER, MINNESOTA 6 03. RELEVANT EXPERIENCE HKGi has an in-depth understanding of the parking issues and concerns in Downtown Stillwater. This understanding stems from our recent work in preparing the City’s 2040 Comprehensive Plan and Downtown Stillwater Plan. These efforts have helped us build trusted relationships between our team, downtown stakeholders, and community members. Beyond our recent work in Stillwater, we have developed similar projects that align with this study’s objectives. These projects have helped balance parking needs in similar environments that must embrace the downtown’s unique charm, walkability, and historical context. More importantly, these projects have applied multiple solutions (e.g., public-private partnerships, funding mechanisms, and wayfinding) that work together in order to maximize the downtown’s parking supply. Recent experience has included downtown parking studies for the cities of Chaska, Duluth, St. Louis Park, Osseo, and Victoria. HKGi will begin this project with a strong base of knowledge about Stillwater’s downtown based on past experience. Graphics HKGi has produced for downtown planning efforts include a parking location map (above), riverfront circulation framework (top right), and an urban design framework (bottom right). PARKING SYSTEM EFFICIENCY STUDY PROPOSAL7 RELEVANT EXPERIENCE < For full cutsheet, align sidebar to this guide Downtown Parking Study Victoria, Minnesota HKGi worked with a Task Force consisting of councilmembers, commission members, residents, and business owners to study the downtown parking environment in Victoria and identify strategies to help address potential or perceived parking issues in Victoria’s rapidly redeveloping downtown area. The study included an inventory of public and private, on-street and off-street parking facilities in the downtown area, including the core downtown as well as an area on the eastern fringe of the downtown. Parking utilization surveys were conducted during three key timeframes for weekdays and for Saturdays. The surveys indicated that during the highest utilization period, Friday and Saturday evenings after 6pm, parking in the two core blocks are at 85% of capacity or higher and that private parking is at capacity. Based on the findings, HKGi and the Task Force collaborated to develop a list of thirteen recommendations that range from immediate strategies such as improving wayfinding and signage systems downtown and addressing employee parking, to next phase strategies such as revising parking requirements in the city’s development code and making improvements to the urban form to better accommodate pedestrians so some of the underutilized existing parking becomes more attractive. The study also recommends studying the feasibility of building a parking structure and addressing parking on a district-wide basis. The study included parking surveys at key times during both weekdays and weekends in order to establish parking utilization rates in the downtown. STILLWATER, MINNESOTA 8 RELEVANT EXPERIENCE < For full cutsheet, align sidebar to this guide Downtown and Canal Park Parking Study Duluth, Minnesota HKGi recently conducted a parking study of Downtown Duluth and the highly popular Canal Park area. The objective was to study and implement a district- wide parking approach for the area, to include the use of innovative solutions and strategies to address a variety of challenging issues currently facing the City. Parking utilization surveys demonstrated that parking is readily available across downtown Duluth, although it is at 85% capacity or higher at a couple of key locations during business hours. Parking at Canal Park is utilized at a much higher rate on the weekends and in the afternoon and evening hours. At its peak, 6 of 14 lots at Canal Park are at capacity with one other lot above 85% capacity. Because parking in the two areas is still generally available within walking distance, the study does not point to any immediate steps that need to be taken. Instead, the City should continue to focus on monitoring utilization rates. The surplus of parking in the district should be leveraged to attract new development. As new development begins to consume existing parking, the City can begin to implement a district-wide parking model. A survey of district-wide parking strategies is included in the project memo and will provide insight for the City when it is ready to move to the next phase of planning for parking needs. ISTH 35 W 3rd St W 4th St W 1st St E 5th St W Superior St W 2nd St E 6th St W 5th St Mesaba AveE 1st St W Michigan St W Railroad St N Lake AveE 2nd St 3 7 4 4N 1st Ave EN 3rd Ave EN 2nd Ave EN 4th Ave EHarbor Dr W 6th St N 1st Ave WN 4th Ave WN 2nd Ave WN 5th Ave EN 6th Ave EN 3rd Ave W3262E Michigan StN 8th Ave WS 5th Ave WS Lake AvePittsburg Ave N 6th Ave WCanal Park DrS Cascade St E 4th St Sutphin St Mesaba Pl N 5th Ave WM-607S Lower 5th Ave WS 3rd Ave WCivic Center Cir W Commerce StL a k e P l a c e D rN 7th Ave WPriley DrW 6th St ISTH 35N 5th Ave WMesaba AveW 2nd St Mesaba Ave N 6th Ave WN 5th Ave W1 1 1 1 1 1 10 10 11 11 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 2 2 2 20 20 20 21 22 22 24 24 25 25 26 26 27 27 28 28 29 29 3 3 3 30 30 31 31 32 32 33 33 33 33 33 34 34 35 35 36 36 36 37 37 38 39 4 4 4 40 41 42 43 5 5 5 6 6 6 7 7 7 8 8 8 9 9 Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community ´Downtown Duluth Parking Study PARKING SYSTEM EFFICIENCY STUDY PROPOSAL9 RELEVANT EXPERIENCE < For full cutsheet, align sidebar to this guide Wayfinding Signage System Chaska, Minnesota HKGi conducted a citywide analysis to identify Chaska’s wayfinding needs for signage targeted towards vehicular traffic, trail users, and signage needs specifically in the downtown area. After conducting an analysis of current conditions, HKGi identified key destinations, specific locations throughout the community for new signage, and also identified what type of signage (Gateway, Directional, primary, secondary, Trailhead, Trail ) would be most appropriate for each location. HKGi also designed signage concepts and sketches for each type of sign as well as potential thematic concepts to help organize the signage system. Information delivered to the City by HKGi also included unit cost estimates for each sign type, design guidelines, and phasing for implementation. STILLWATER, MINNESOTA 10 RELEVANT EXPERIENCE < For full cutsheet, align sidebar to this guide Downtown Streetscape and Public Space Design Chaska, Minnesota HKGi led the community through the schematic design process to create a streetscape and public space improvement plan for Chaska’s historic downtown core, which includes City Square and City Hall Plaza, two important outdoor public spaces. The design process established a materials palette that can be used on future streetscape improvements throughout downtown Chaska. A parking analysis was also conducted as an important part of the planning process. The streetscape analysis included identifying character types for each of the downtown’s streets as well as a character analysis of City Hall Plaza and City Square Park. These analyses provided streetscape design, parking, and furnishing directions for each street segment. The parking analysis indicated a surplus of parking in the downtown core and was conducted in order to provide support for the elimination of spaces in some locations and a switch to angled parking in other locations. The changes to the parking model resulted in an overall increase in parking spaces, but a reduction in one quadrant that had an excess of 150 spaces. Street section illustration for 2nd Street at Paseo Plaza - Commercial Heritage Street PARKING SYSTEM EFFICIENCY STUDY PROPOSAL11 RELEVANT EXPERIENCE < For full cutsheet, align sidebar to this guide Comprehensive Plan Stillwater, Minnesota The City of Stillwater marked its 100th year of planning by completing its 2040 Comprehensive Plan, which will see the beginning of a new era in the city’s history. The Stillwater Lift Bridge, which in recent years has been a source of remarkable traffic congestion, particularly for Stillwater’s well-preserved and well-loved downtown, closed to automobile traffic in 2018 and will become a pedestrian and bicycle bridge in the near future. The closing of the Lift Bridge to automobiles will usher in new opportunities for downtown as the traffic that once clogged Main Street decreases, freeing up the streets for weekend shoppers, outdoors recreation enthusiasts, and potentially new downtown residents who might be attracted to live, work, and shop in Stillwater’s compact, walkable downtown. In addition to the Downtown Plan chapter, which was developed in a separate project, the Comprehensive Plan emphasizes redevelopment and development opportunities elsewhere in the city, particularly along the edges of the community and along the Highway 36 corridor. The need to identify additional housing opportunities, as well as mixed uses in selected areas, resulted in a future land use plan that will enable appropriate housing and commercial growth without disrupting Stillwater’s established low density residential areas. The Comprehensive Plan also identifies room for business park and industrial growth along the southern edge of the city, along the Highway 36 corridor. The comprehensive plan for Stillwater addressed several issues including redevelopment concepts for focus areas throughout the city (left) and policies and strategies to protect historic resources such as the public stairwell downtown and natural resources such as the many bluffs that give the city its unique character and extraordinary viewsheds. STILLWATER, MINNESOTA 12 RELEVANT EXPERIENCE < For full cutsheet, align sidebar to this guide Downtown Action Plan Red Wing, Minnesota HKGi provided strategic planning and urban design services for Red Wing’s historic downtown, which resulted in the creation of a downtown action plan rooted in the vision of community members and the Mayor’s Downtown Action Plan Task Force. The action plan targets and embraces a core set of six main community values – to 1) create vibrant gathering places, 2) attractive housing options, 3) thriving commerce, and 4) strong connections that 5) celebrate the experience and 6) foster sustainability. A hallmark of the plan is a tool kit designed to facilitate smooth and ongoing implementation. The plan includes a creative “Decision Principles Checklist” and an “Actions Matrix” - identifying the key questions the plan implementer should ask when evaluating an action or project in downtown Red Wing. Since adoption of the Action Plan, HKGi has worked with the City to implement important streetscape improvements, create a master plan for He Mni Can-Barn Bluff Park, and begin planning work for a pedestrian bridge and redevelopment in the Old Main area of downtown. 2010 Merit Award for Planning & ResearchDOWNTOWN RED WINGaction plan jUNE 2009 2010 Preservation Award Downtown Red Wing enjoys a wealth of historic and natural amenities including bluffs and parkland along the banks of the Mississippi River PARKING SYSTEM EFFICIENCY STUDY PROPOSAL13 RELEVANT EXPERIENCE < For full cutsheet, align sidebar to this guide Downtown Signage and Wayfinding Master Plan Hutchinson, Minnesota As part of Hutchinson’s ongoing downtown revitalization, the City retained HKGi to focus on designing a master plan to emphasize identity, place making and wayfinding. The master plan lays out a framework for the implementation of a unified signage and wayfinding system designed to aid, educate, and orient local residents and incoming trail users to downtown Hutchinson’s history and destinations. The plan establishes two districts around downtown and the Crow River and identifies key park, downtown, and historic destinations within each district. Key to the success of the project was the establishment of a design aesthetic for signage elements which unified the city’s existing system of streetscape elements with the historic and architectural features of the downtown and Crow River districts. The plan specifies critical sign design details, sign location and orientation, and provides a phasing plan enabling a timely and cost effective roll out of the system. Following the creation of the master plan, HKGi created construction documentation and conducted construction administration for the implementation phase of the project. Districts and Destinations Map Final Entry and Interpretive Signage Concepts River District Directional Sign Crow River Trail System Map Kiosk STILLWATER, MINNESOTA 14 RELEVANT EXPERIENCE < For full cutsheet, align sidebar to this guide Heritage Landing Parking Facility - Federal Reserve Bank Minneapolis, Minnesota HKGi is currently working with a multi-disciplinary team, led by BWBR Architects, to design and construct a parking ramp and associated site improvements for expansion of their downtown Minneapolis campus. The project, known as Heritage Landing, is located in Minneapolis’s North Loop neighborhood, near the Mississippi River. The proposed Heritage Landing parking ramp will complete the Federal Reserve Bank’s campus master plan and provide parking for employees as well as North Loop area businesses and visitors. The Heritage Landing site design concept is in support of planning principles established by North Loop area planning initiatives, including the provision of safe, attractive, and publicly accessible green spaces in the North Loop neighborhood; improved pedestrian and bicycle connections between the North Loop neighborhood, the Cedar Lake Trail, and the Mississippi River; enhanced view corridors to existing landmarks and the Mississippi River; flexible outdoor spaces that can be programmed for formal and informal community gathering events throughout the year; reduced hard space and the introduction of native plant materials; and the incorporation of best management practices (BMPs) for managing stormwater runoff to improve water quality and reduce runoff. The planned expansion is scheduled for construction beginning in fall 2019 and completed by fall 2020. Site design improvements include: - Pedestrian Promenade - Paved plaza spaces - Flexible/open central lawn area - River overlook and pergola - Native plantings/landscaping - Trail improvements - Public art - Special site lighting PARKING SYSTEM EFFICIENCY STUDY PROPOSAL15 RELEVANT EXPERIENCE < For full cutsheet, align sidebar to this guide City Square West Redevelopment Concept Chaska, Minnesota HKGi is providing leadership for a multidisciplinary team exploring redevelopment concepts for a key parcel in downtown Chaska. The team includes an architect, and a real estate developer, who is providing expertise related to commercial and residential market conditions and feasibility. HKGi is also leading the team in conducting a site study for a new downtown library that the City is planning on constructing. The project team, representatives from the City, key stakeholders, and current property owners have explored a variety of redevelopment scenarios and assessed each scenario for its economic feasibility as well as for its ability to contribute to the vision established in Chaska’s Downtown Master Plan. A key element emphasized in the redevelopment concepts is the Paseo Connection, an attractive, safe, north-south mid-block connection that uses alleyways as premier pedestrian thoroughfares. Exploration of the redevelopment concepts for this block have focused on ways to activate the Paseo with alley-facing businesses and placemaking elements. An on-site library has been part of the concepts being explored. A more expansive library site study will enable the City’s leadership to compare and test the feasibility of an on-site library with the costs and feasibility of building a library on other sites in the downtown area. Exploration of development concepts included 3D renderings to help stakeholders and the project team explore building massing and site navigation scenarios (left). The planning process also had to consider potential parking solutions for the redevelopment. Sketches of various concepts illustrated underground parking configurations. STILLWATER, MINNESOTA 16 04. FEE QUOTATION HKGi has prepared a fee that aligns with the prescribed scope of work and deliverables listed in the Request for Proposals & Qualifications. We also understand this study will occur in two phases (Phase I and Phase II). In that respect, we will work closely with Stillwater staff and the Stillwater Downtown Parking Commission to ensure the first phase leads towards realistic implementation measures that can be evaluated as part of the second phase. At that time, HKGi and Stillwater staff will scope the second phase within an agreed upon budget. We anticipate the first phase of work to be completed by the end of January 2020 and within the proposed fee listed below: Task Estimated Hours Fee 1. Project Coordination 20 $2,300 2. Engagement 20 $3,100 3. Exploration Phase 90 $8,900 4. Strategies & Recommendations 70 $7,700 5. Final Deliverables 30 $2,800 Subtotal 230 $24,800 Reimbursable Expenses $200 Not-to-Exceed Total $25,000 Additional Meetings We anticipate any additional meetings outside of those listed in the scope provided in the RFQ would be led by the project manager, Lance Bernard. His hourly rate for additional meetings will be billed at $130/hour. If additional time is required for preparation of materials, the rate for staff support time would be billed at a rate of $75-$85/hour, depending on the type of staff support needed. If additional meetings are required, HKGi will work with the City in advance to identify the necessary resources and provide an anticipated meeting cost. Additional meetings will be billed on an hourly basis. DOWNTOWN RED WING DOWNTOWN CHASKA PARKING SYSTEM EFFICIENCY STUDY PROPOSAL17 Creating PLACES that enrich PEOPLE’S lives Proposal for City of Stillwater PARKING SYSTEM EFFICIENCYSTUDY 06.28.2019 Stantec Consulting Services Inc. 733 Marquette Avenue, Suite 1000, Minneapolis, MN 55402 June 28, 2019 Bill Turnblad bturnblad@ci.stillwater.mn.us RE: City of Stillwater Parking System Efficiency Study for the Downtown Public Parking System Dear Mr. Turnblad and members of the selection committee: On behalf of Stantec’s Urban Places group, we are excited at the opportunity to submit the following proposal for the Parking System Efficiency Study of Stillwater’s Downtown Public Parking System. Stillwater, like many vibrant downtowns, is challenged by its own success, even as its operations are grounded in history. The City’s current situation reflects competing realities, such as convenient parking makes lives easier, surface parking lots are prime development opportunities, paying for parking is not the “Minnesota way,” and street parking competes for space with improved bicycle and pedestrian facilities. Conversations around parking are some of the most emotional planning topics, because different strategies can divide people into winners (parking is easy) and losers (parking is hard). Stillwater has studied its downtown parking conditions many times in the quest to find the ideal scenario to support local businesses. This point in time is unique, though. You are acquiring property now for surface parking and discussing more acquisitions to hopefully solve the crunch, and your Downtown Parking Commission is acting on more and more requests for events. What Stillwater needs now is a fresh perspective. Our team has extensive experience conducting complex integrated analyses. We understand how to help cities make tradeoffs and invest critical, limited dollars most impactfully. We know how to demonstrate the multimodal impacts of development within complex urban environments. Most importantly, we approach everything from the perspective of the user so that we can help Stillwater determine how its employees, visitors, residents, and businesses will most likely interact with the parking and transportation system. At Stantec, we design the places and the infrastructure that communities depend on. Our team is focused on understanding how people use mobility and parking networks, what influences their decisions, and how their travels could be improved—but more importantly how these interact with the overall built environment. Stantec will lead the project team with our Urban Places staff members who are skilled in understanding how parking lies at the intersection of mobility and place, and have solved parking challenges in dozens of communities as well as tourist destinations just like Downtown Stillwater. In particular, our work in Nantucket and downtown Savannah will provide lessons in how to balance tourism with resident needs. Our team is led by Ralph DeNisco, Principal in Charge, one of Stantec’s leading parking and transit experts. He will be supported by Minneapolis- based planners who are working together on parking projects around the region. Beth Elliott, AICP will serve as Project Manager and act as your day-to-day liaison. She will tie our local knowledge and national expertise together to ensure our timeliness and flexibility in meeting the City’s needs, while producing highquality deliverables and graphics. Every one of our parking studies begins with the facts on the ground—a thorough inventory and utilization assessment—to identify the real parking situation versus perceived constraints. We work with the people most invested in not just the day-to-day parking operations but those working toward long-term goals. Stantec built our own shared parking demand model because standard ITE parking recommendations rarely apply. And then we developed—and in many cases implemented—parking strategies that were customized to each unique case. Your Parking Efficiency Study is not just about solving today’s parking challenges but setting up the Downtown Parking Commission for good decision-making over time. The results of this study should positively impact the Enterprise Fund, give City staff more effective regulatory tools, and better guide future acquisition decisions. The Stantec team wants to be your partners in an even more thriving and well-managed downtown environment. We look forward to working with you! On behalf of Stantec’s Urban Places group, we are excited to submit the following proposal for this Parking System Efficiency Study of Stillwater’s Downtown Public Parking System. If we can provide any additional information about Stantec or this proposal, please do not hesitate to contact Beth. Sincerely, STANTEC CONSULTING SERVICES INC. BETH ELLIOTT AICP Assistant Project Manager (612) 712-2039 beth.elliott@stantec.com RALPH DENISCO Principal in Charge (617) 654-6089 ralph.denisco@stantec.com TABLE OF CONTENTS Professional Qualifications 1 Past Involvement with Similar Projects 9 Fee Quotation 15 Authorized Negotiator/Expeditor 16 Project Approach 17 A B C D E AProfessional Qualifications PROFESSIONAL QUALIFICATIONS The Stantec community unites approximately 22,000 employees working in over 400 locations across six continents. We collaborate across disciplines and industries to bring projects to life. Our work—planning, engineering, architecture, surveying, environmental sciences, construction services, project management, and project economics, from initial project concept through design, construction, and commissioning, begins at the intersection of community, creativity, and client relationships. Our local strength, knowledge, and relationships, coupled with our world-class expertise, have allowed us to go anywhere to meet our clients’ needs in more creative and personalized ways. With a long-term commitment to the people and places we serve, Stantec has the unique ability to connect to projects on a personal level and advance the quality of life in communities across the globe. Our team is licensed to work in Minnesota and has been serving Minnesota communities for more than 60 years. We believe in the importance of design in enhancing the quality of the human experience. We look at what will enrich the lives of those who will live in a community. 1 Full Name Stantec Consulting Services Inc. Address 733 Marquette Avenue, Suite 1000 Minneapolis, MN 55402 Branches Performing the Work Minneapolis, MN and Boston, MA Organization Type Corporation State Incorporated New York Number of Personnel by Skill and Qualification on this Project Project Manager - 1 Principal in Charge - 1 Parking Strategist - 1 Urban Planner - 1 GIS Analyst - 1 Years in Business 65 Number of Employees 22,000 Locations 400 2 Stantec | City of Stillwater Parking System Efficiency Study STAFFING 3 LIZA COHEN Parking Strategist BETH ELLIOTT AICP Project Manager JOE POLACEK Urban Planner HONGYI DUAN GIS Analyst Location: Minneapolis, MN Location: Boston, MA Location: Minneapolis, MN Location: Minneapolis, MN Principal in Charge RALPH DENISCO Location: Boston, MA BETH ELLIOTT AICP PROJECT MANAGER Beth is an urban planner with proven experience managing complex short- and long-term projects of regional significance. Her expertise is not only in long-range planning projects like downtown master plans, comprehensive plans, revitalization studies, and transit-oriented visioning, but she excels in strategizing successful implementation through parking studies, zoning and other regulatory frameworks, infill redevelopment, environmental review processes, and funding. She also has specialized expertise in developing and facilitating inclusive and creative community engagement strategies for diverse stakeholder groups. Beth is known for her collaboration and communication skills among elected officials, community members, developers, and businesses to advance projects. EducationMasters in Urban and Regional Planning, U niversity of Minnesota, Minneapolis, Minnesota, 2002 Bachelor of Arts, University of Iowa, Iowa City, Iowa, 2000 MembershipsMember, Urban Land Institute Member, American Planning Association Planning Experience with the City of Minneapolis*, Minneapolis, Minnesota Beth spent 14 years as a planner for the City of Minneapolis, including 11 years as the Principal Planner for Downtown Minneapolis. She co-managed the 2018 update to the city’s comprehensive plan and its engagement process and coordinated and implemented downtown planning initiatives. LynLake Parking Study, Minneapolis, Minnesota Beth managed the day-to-day needs of a comprehensive parking analysis in this bustling commercial district. Her team conducted an inventory and then completed an analysis of how the district parking is utilized. The study included a parking demand analysis based on area land use and parking generation ratios. Considerations were given to ride shares and mixed-use buildings to make the parking demand model more applicable to this specific study. East Downtown Parking Lot Study*, Minneapolis, Minnesota In a downtown district experiencing market failure, Beth analyzed the commercial surface parking lots surrounding a light-rail station to determine barriers to redevelopment. The resultant study focused on methods to eliminate development costs, such as for structured parking, and increase development cash flow through amenitizing the area with greening and increased transit options. Beth’s analysis was pivotal in realizing the intense development occurring in the district today. Downtown Rezoning Study.* Minneapolis, Minnesota Leading a team of technical experts, Beth conducted a site-by-site zoning analysis of downtown Minneapolis that led to rezoning almost 500 properties and the creation of a new transit-oriented development zoning district. She engaged residential and business organizations, solicited feedback from developers, facilitated community meetings, and gained political support for the adoption of the zoning recommendations. EXPERIENCE * Completed while with another firm 4 RALPH DENISCO PRINCIPAL IN CHARGE EducationMaster of Arts, Urban Affairs, Boston University Metropolitan College, Boston, Massachusetts, 2008 Bachelor of Arts, Economics, Boston College, Boston, Massachusetts, 1992 * Completed while with another firm 5 Ralph has nearly 20 years of transportation planning experience, with a history of successfully implementing a variety of transportation projects in challenging environments. Working as project manager or providing technical advice, Ralph has channeled his understanding of interrelated transportation issues into programs able to win both community and agency support. He has extensive experience in Nationally and in Boston leading complex efforts for municipalities, transit agencies and foundations. Ralph has successfully led complex design, planning, and development efforts in Boston and around the country – specializing in parking, transit and integrated transportation planning. Savannah Downtown Parking and Mobility Strategic Plan.* Savannah, GeorgiaRalph led a comprehensive strategic parking review and mobility plan in one of America’s most renowned historic districts and destinations. Working with the Chatham County-Savannah Metropolitan Planning Commission and the City of Savannah, the study updated the inventory database as well as assessed parking demand for present and future conditions. The strategies, policies, regulations, operations and investments recommended are now being implemented to great success and are enhancing the vitality of the greater downtown area, providing mobility options, and making adequate parking available for residents, visitors, businesses and future economic development opportunities. Concord Parking Study.* Concord, Massachusetts Ralph served as project manager, leading Concord’s efforts to update parking management strategies for multiple business districts. The analysis included a broad and thorough review of parking supply and utilization, supplemented with several outreach efforts. Strategies recommended were interrelated and developed in tandem, including eliminating time limits, using pricing to encourage availability, streamlining of regulations, and a balancing of commuter regulations to maximize the existing supply at both stations. Other strategies include zoning code updates, improvements in bicycle facilities and parking, and shared parking enhancements. Newmarket District Parking Demand Study.* Boston, Massachusetts Ralph assisted outreach efforts and directed the data analysis and recommendations to determine the demand for a structured parking facility in Boston’s Newmarket Industrial District. The study showed that despite high employee utilization and unique operating characteristics that current parking demand was not able to financially sustain a parking structure. The study further determined the observed parking demand rates, highlighted needed pedestrian and connectivity improvements to expand the pool of desirable parking, recommended physical and regulatory changes that would create over 50 additional on-street parking spaces, and completed land-use analysis to project scenarios in which a garage would be required. LynLake Parking Study, Minneapolis, MinnesotaRalph led a comprehensive parking analysis in this bustling commercial district. His team led a thorough inventory and then completed an analysis of how the district parking is utilized. The study included a parking demand analysis based on area land use and parking generation ratios. Considerations were given to ride shares and mixed-use buildings to make the parking demand model more applicable to this specific study. EXPERIENCE Austin Downtown Parking Strategy*, Austin, Texas Liza led one of the first comprehensive assessments of downtown Austin’s public and private parking inventory, which is over 75,000 parking spaces. She is also leading a modeling process to estimate parking demand and needed supply in the near- and long-term based on a development analysis. Arlington County Transportation Performance Monitoring*, Arlington, Virginia Liza led a robust data collection effort to determine parking generation, mode shares and trip generation for large and multi-use residential buildings throughout Arlington County. Nantucket Parking Study.* Nantucket, Massachusetts Liza led the intensive data collection effort to determine turnover and the percentage of “rollers,” moving cars to escape time-limited parking. She also developed and led the pilot of automatic license plate reader (ALPR) technology, now deployed in the downtown. Somerville Parking Pricing.* Somerville, Massachusetts Liza led this project to compare smart meter data to on-the-ground utilization and adjust pricing to match demand. Union Square Development*, Somerville, Massachusetts Liza performed multimodal transportation design guidelines, parking analyses and ratio development, and building access analyses for the master developer of several key parcels in Somerville’s growing Union Square. Ford Site Multi-Modal Modeling and Design*, Saint Paul, Minnesota Liza provided review and assessment of multimodal trip generation modeling based on national best practices as well as previous research. Boston Parking Policy Study*, Boston, Massachusetts Making creative use of municipal and private data sources, Liza helped to create a comprehensive off-street parking inventory for Boston. LIZA COHEN PARKING STRATEGIST EducationMaster of Arts, City and Regional Planning, University of Pennsylvania, Philadelphia, Pennsylvania, 2012 Bachelor of Arts, Urban Studies, Bowdoin College, Brunswick, Maine, 2008 6 Liza is a skilled planner with expertise in GIS analysis, data collection and visualization, and innovative community engagement techniques. She has worked on a range of projects, from campus-focused transportation demand management and mobility plans to town- and city-wide mobility planning. In each of these, Liza’s approach is to synthesize data and community and stakeholder feedback to provide better transportation options. Liza has served as deputy project manager on multiple citywide mobility plans and large scale development projects, often leading innovative and comprehensive data collection and analysis efforts. EXPERIENCE * Completed while with another firm JOE POLACEK URBAN PLANNER Joe is experienced in community engagement, comprehensive planning, master planning, spatial design, hand drawing, digital rendering, graphic production, research and analysis, and report writing. He is also involved in a wide variety of planning and design projects, including zoning studies, redevelopment projects, parking studies, environmental reviews, and the design of mixed use projects. EducationMetropolitan Design Certificate , University of Minnesota, Minneapolis, Minnesota, 2018 Bachelor of Design in Architecture, University of Minnesota, Minneapolis, Minnesota, 2012 Master of Urban and Regional Planning, University of Minnesota, Minneapolis, Minnesota, 2018 MembershipsMember, American Planning Association LynLake Parking Study, Minneapolis, Minnesota Joe supported the day-to-day needs of a comprehensive parking analysis in this bustling commercial district. He conducted field work to determine the parking inventory and assisted in completing an analysis of how the district parking is utilized. The study included a parking demand analysis based on area land use and parking generation ratios. Joe was responsible for writing the final report. Comprehensive Plan Update, Benson, Minnesota City officials in Benson wanted to go in a new direction with their plans – the city was consistently losing population, but their previous plans were focused on managing growth. Joe researched and reported on demographics, housing, and employment trends in recent decades and then sketched and modeled the city’s downtown area while developing implementable strategies to help Benson see a bright future once again. Zoning Ordinance Update, Palestine, Texas The zoning code in Palestine was due for an update and the sign ordinance was especially deficient – it was wordy and confusing. With his unparalleled speed in digital graphics and critical eye for communications, Joe created straight-forward and easy to read graphics that communicated concepts in the code that previously required many words to describe. Zoning Administration Joe provides technical support to staff, Planning Commissions, and City Councils on land use applications. His specialty is visually representing complicated zoning concepts for decision-makers and the broader public. Current clients include Minnetonka Beach and Spring Lake Park. 2040 Comprehensive Plan, Mounds View, Minnesota One suburban community wanted their comprehensive plan to be rewritten from scratch with accompanying illustrations but had little budget to do so. Joe concisely organized the materials required in a comprehensive plan, leaving ample budget to narrate the long-range and high-level goals of city staff and to create illustrations to go alongside. Joe’s attention to detail and organization in writing, illustrating, and communications with city staff resulted in a plan that was under budget and exceeded expectations. EXPERIENCE 7 HONGYI DUAN GIS ANALYST Hongyi Duan works on a variety of projects including comprehensive plans, special studies, environmental studies, corridor plans, transportation studies, bicycle and pedestrian plans, zoning and rezoning studies, market research, condemnations, and urban design. In addition to her expertise in various GIS, drafting, and graphic software, Hongyi provides strategic leadership in data-driven projects. EducationBachelor of Architecture, Beijing Polytechnic University, Beijing, China, 1990 Master of Science, Community and Regional Planning, Iowa State University, Ames, Iowa, 1994 MembershipsMember, Sensible Land Use Coalition LynLake Parking Study, Minneapolis, Minnesota Hongyi provided leadership in data collection and analysis for a parking inventory and utilization study in this bustling commercial district. Hongyi designed the methodology for the inventory survey and then completed an analysis of how the district parking is utilized. She then conducted a parking demand analysis based on area land use and parking generation ratios. Considerations were given to ride shares and mixed-use buildings to make the parking demand model more applicable to this specific study. Developable Land Research, Twin Cities Metropolitan Area, Minnesota Hongyi was responsible for all GIS-related data collection, mapping, and analysis tasks for this project. This project involved analyzing areawide land supply and development potential based on a set of physical and regulatory criteria. The outcome of the project was part of various due diligence efforts for major developers in the region. Land Supply Study, Twin Cities Metro, Minnesota Hongyi provided all GIS-related research, mapping, and analysis tasks for this project. Stantec worked on behalf of the Builders Association to analyze the Metropolitan Council’s urban land supply. Hongyi used GIS to study existing parcel sizes, related cities’ existing and future land uses, and natural features to arrive at net developable land for each community. The study found that generalized land use combined with long-range forecasts alone was not sufficient for measuring and making land supply decisions. As a result, the Metropolitan Council created a plat monitoring program to better monitor the supply of residential land in the region. Fargo-Moorhead Bicycle and Pedestrian Plan Update, North Dakota and Minnesota Hongyi was responsible for all GIS-related analysis and mapping for this project. Stantec coordinated with ALTA on the preparation of the bicycle and pedestrian policy recommendations, bicycle network recommendations, facilities improvement recommendations, and community outreach for this plan update. St. Cloud Area Joint Planning District Plan, St. Cloud, Minnesota Hongyi performed all GIS related mapping and analysis tasks involved in this project. The St. Cloud Area Joint Planning District Plan, completed in spring 2000, was designed to assist these communities in comprehensive planning and growth management efforts for 20 years or more. This project was the first of its kind in both scope and scale outside the Twin Cities metro area. EXPERIENCE 8 BPast Involvement with Similar Projects Stantec | City of Stillwater Parking System Efficiency Study B PAST INVOLVEMENT WITH SIMILAR PROJECTS 59 LYNLAKE PARKING STUDY The LynLake district is one of the most rapidly developing areas in Minneapolis. It is both an important link in the multimodal transportation system of southwest Minneapolis and a destination in its own right. LynLake is a thriving business district in southwest Minneapolis with restaurants, bars, offices, theaters, fitness centers, and more. It’s also home to a growing residential population with young renters in both new and older apartments and duplexes surrounding the busy commercial core. Stantec was hired by the City of Minneapolis to conduct a comprehensive parking inventory, understand utilization patterns, and reflect trends in recent development. As a vibrant business district, LynLake has competing interests for its public and private parking supply with a perceived lack of parking by all users. With our extensive experience in comprehensive parking analyses and understanding of the multimodal impacts of development in complex urban environments, Stantec’s approach was to be both data and community driven. We began by understanding actual parking dynamics through a thorough inventory, identified any hidden factors impacting the parking supply, and evaluated current demand both on the ground and through available land use information. Armed with the best data possible, the Stantec team conducted a parking demand assessment using a typical ITE expected demand model and then applied the Urban Land Institute’s shared parking model for a more realistic perspective on this urban area’s parking needs. Recommended strategies included raising on-street parking rates, adding meters in well- used areas, simplifying on-street regulations, investing in surface lot upgrades, and developing an area transportation program. Reference Mark Read, Minneapolis Public Works Assistant Parking System Manager mark.read@minneapolismn.gov (612) 673-3732 Just like the City of Stillwater, the City of Minneapolis needed to understand the competing interests of development and public parking on their own assets. Minneapolis, MN Stantec | City of Stillwater Parking System Efficiency Study NANTUCKET PARKING ADVISORY SERVICES Just off the coast of Cape Cod, the well-known summer destination of Nantucket has long-faced parking issues in its historic downtown. The Town understood that in order to maintain availability in key locations it would be necessary to price parking, but wanted to do so in a way that maintains access for year-round residents, visually preserves historic character, and is convenient for all users. Stantec’s analysis covered both revenue estimates as well as an overview of parking technologies that could work to meet Nantucket’s unique needs. Based on previous occupancy counts, the team estimated revenue based on multiple pricing scenarios that considered the needs of residents, seasonal visitors, and employees. This in turn fed into an analysis of unique parking technologies, such as in-car meters and RFID technology, that could support Nantucket’s goals of preserving its picturesque cobblestone streets. Importantly, Stantec developed all materials and meeting formats to be sure that a diverse Working Group – consisting of Town staff, the police, and other stakeholders – understood the implications of all scenarios. This project represented a collaboration between ReMain Nantucket and the Town, which will continue moving forward as the Town rolls out paid parking. ReferenceRachel Hobart, ReMain Nantucket Project Manager rhobart@remainnantucket.org (508) 901-4142 Stantec can apply lessons from this project to the Stillwater Parking System Efficiency Study about how to balance summer tourism with the day-to-day needs of residents. Sources: Esri, HERE, Garmin, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), swisstopo, ©OpenStreetMap contributors, and the GIS User Community Legend Summer Parking Utilization - 12PM Weekend 0 - 60.0% 60 - 70.0% 70 - 80.0% 80 - 90.0% 90 - 100.0% 100%+±0 500 1,000250 Feet Sources: Esri, HERE, Garmin, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), swisstopo, ©OpenStreetMap contributors, and the GIS User Community Legend Parking - Summer 2018 15 Minute 20 Minute 30 Minute 1 Hour 2 Hour Disabled Park Restricted Taxi Loading Zone Town Lot 10 Nantucket, MA Stantec | City of Stillwater Parking System Efficiency Study ROCKPORT PARKING TECHNICAL ASSISTANCE The recently completed Rockport Parking Strategy will help this busy coastal town maintain its historic character while mitigating access conflicts between visitors, residents, and beachgoers in the summertime. Stantec led the development of this strategy, including facilitating meetings with an appointed Parking Committee to help refine the issues and opportunities. The final Strategy includes recommendations ranging from pricing adjustments to facilitating downtown access from an existing park and ride lot. The study also included the first comprehensive review of all existing parking, both public and private, as well as utilization by facility during a peak summer day. Our analysis showed that in core areas, there is more than enough demand to raise the price, and the increased revenue could be used for multimodal improvements such as making the shuttle to remote parking fare-free. The Strategy also builds on observed demand patterns to develop a system to motivate long-term parkers for the beach to use remote lots. The Parking Committee and Police plan to move forward with several of the strategies for the summer of 2019. Reference Richard Souza, Town of Rockport Department of Public Works rsouza@rockportma.gov (978) 546-3525 Through sound technical fact-finding work, Stantec found opportunities for Rockport to more effectively use their parking fund on areawide improvements, including a shuttle service similar to what has been discussed for Downtown Stillwater. 11 Rockport, MA Stantec | City of Stillwater Parking System Efficiency Study GREATER DOWNTOWN SAVANNAH PARKING AND MOBILITY STUDY 12 Savannah’s historic downtown presented unique parking challenges. The Parking and Mobility Study led to a broad program of management studies ranging from zoning reform to user experience improvements. Members of the Stantec team worked with the City of Savannah and the Chatham County-Savannah Metropolitan Planning Commission to undertake a comprehensive inventory and utilization counting effort from which developed and presented a broad program of management strategies. The City of Savannah is currently implementing many of the plan’s recommendations: it is installing modern, multi-space meters that will support a demand-based pricing plan to create availability in curbside street parking; it has realigned its shuttle service to focus on short, direct runs at greater frequencies; and it has used technology-based applications to enable payment, which has resulted in a decline in citations for overtime parking customers. Stantec’s staff who led this study continue to work with the City to develop an in-lieu parking system wherein developers can support parking and transportation improvements downtown in exchange for relief from meeting zoning requirements on constrained sites. Well aware of the continued need to provide parking in the Savannah development market, the City is focusing this in-lieu program on using its own parking facilities to meet the needs of smaller private development on constrained sites. Reference Sean Brandon, City of Savannah Management Services Bureau Chief sbrandon@savannahga.gov (912) 651-6470 As a tourist town like Stillwater, Downtown Savannah had complicated zoning, supply, and operations needs for their parking system. Stantec not only defined the inventory and parking demand but worked with the City on a system for coordinating a mutually-beneficial fee system with developers. Savannah, GA Stantec | City of Stillwater Parking System Efficiency Study DOWNTOWN MINNEAPOLIS REZONING STUDY As the Downtown Minneapolis planner for the City of Minneapolis, Ms. Elliott initiated a large-scale rezoning study to implement a number of city- adopted small area plans simultaneously. The project included management of a technical team, community engagement, site-by-site zoning analysis and recommended changes to implement the plans, and the creation of a new Downtown-specific Transit-Oriented Development zoning district. Ms. Elliott’s main goal as project manager was to introduce zoning changes that set the stage for market flexibility while still maintaining the plans’ visions. Through extensive engagement of technical experts, property owners, developers, and community groups, Ms. Elliott and her team successfully created a new zoning district, changed the base zoning on almost 500 properties, and revised existing zoning overlay districts. The new zoning district eliminated parking and density requirements, allowed for a variety of active uses, eliminated maximum floor area ratios, and permitted building heights that better transitioned into residential neighborhoods. These changes had the overall effect of eliminating industrial zoning in a transit station area to allow transit-oriented development, implementing zoning that complemented multiple locally-designated historic districts, and creating transitions from the office core to surrounding neighborhoods. Reference Lisa Goodman Ward 7 City Council MemberCity of Minneapolis lisa.goodman@minneapolismn.gov (612) 673-2207 Just like Downtown Minneapolis, Downtown Stillwater needs creative regulatory solutions to balance market desires with the parking needs of both ocal residents and destination visitors. This project was completed by Project Manager, Beth Elliott prior to joining Stantec. 13 Minneapolis, MN Stantec | City of Stillwater Parking System Efficiency Study SOMERVILLE ZONING RE-WRITE The team developed more flexible and modern parking and transportation standards that better reflect the city’s growth as one of the Northeast’s most multi-modal and progressive communities. Members of the Stantec team worked with the City of Somerville on the transportation, parking and mobility elements of a comprehensive overhaul of the City’s zoning code led by the City’s Planning Department. To help the City develop the best-in-class standards, the project benchmarked nationwide standards for a number of factors including shared parking, parking ratios and Transportation Demand Management (TDM) provisions. This exercise included an analysis of best practices to understand shortcomings and implications for the City of Somerville’s goals. The team also provided the City with a “second set of eyes” by helping finesse language and usability from the layperson’s perspective. This meant refining language and providing suggestions on how to make the more technical aspects of the draft code more user-friendly. In addition to modernizing parking standards, the team also recommended methodologies for shared parking, bicycle parking standards, parking standards that reflect local context, and TDM requirements that help to reduce vehicle trips and encourage travel by other modes. For Union Square, an area where the local transit agency is expanding light rail service, the code update included a parking cap as well as trip monitoring and mitigation requirements. Reference Dan Bartman Somerville Office of Strategic Planning and Community Development dbartman@somerville.gov (617) 625-6600 x2543 New approaches to transportation demand management will be a significant topic of consideration for Downtown Stillwater. Stantec staff worked with Somerville to create one of the City’s first parking management districts. 14 Somerville, MA CFee Quotation Stantec | City of Stillwater Parking System Efficiency Study 15 C FEE QUOTATION Firm Name Stantec Contact Information Beth Elliott, AICP beth.elliott@stantec.com (612) 712-2039 Signature of Authorized Firm Negotiator Beth Elliott, AICP Printed Name Signature Date June 28, 2019 Not to Exceed Fee for the Total Project$78,000 Optional Services $22,280 Per Meeting Cost $0 Reimburseables and tax are included in the fee. Stantec | City of Stillwater Parking System Efficiency Study DAuthorized Negotiator/Expeditor Stantec | City of Stillwater Parking System Efficiency Study D AUTHORIZED NEGOTIATOR/EXPEDITOR 16 Following is the contact information for the person authorized to negotiate/expedite the proposal contract with the City of Stillwater: Beth Elliott, AICP Senior Urban Planner Stantec Consulting Services Inc. E-mail: beth.elliott@stantec.com Phone: (612) 712-2039 Stantec | City of Stillwater Parking System Efficiency Study EProject Approach Stantec | City of Stillwater Parking System Efficiency Study E PROJECT APPROACH 17 WHY STANTEC? We are more than just a collection of technical skills. We bring an integrated approach that “connects the dots.” Bringing together our best minds in multiple disciplines allows us to solve complex problems and unlock bigger opportunities. We’ve found that unexpected pairings can lead to great ideas, and we build project teams to capture those kinds of sparks while ensuring strong project management and effective working relationships. Our global experience brings cutting edge talents and abilities to the City of Stillwater. We have world-renowned resiliency experts helping places like London, England and New Orleans, Louisiana plan for future floods. Stantec is known nationwide for major projects including our design of the renovation to Wrigley Field for the Chicago Cubs and our pedestrian modeling work for the past four Olympic Games. While these examples are very recognizable projects, every project, large or small, is important to that community, which makes it important to the Stantec team. At Stantec, we design with community in mind. As a local representative to Stantec’s national Urban Places group, Beth Elliott is your conduit to experts leading best practice efforts on all things planning ... including parking studies. Urban Places—a multidisciplinary team of Stantec experts on the forefront of designing 21st century places—can help any North American community adapt to the economic and demographic changes it will face over the next two decades and beyond. Certain baseline assumptions underlie all Urban Places work—that markets and demographics will drive it, and that resilience will shape it. Focused on serving the communities we live and work in, Stantec offers the best of both worlds: small firm relationships and local knowledge combined with large-firm resources. We connect the people, places, and resources that take a project from idea to reality. We bring our local experience to every project we do in Minnesota and now we want to show you how well that local talent paired with our national parking experts is the best match for your parking study. Our skilled team of local and national parking experts include: • Beth Elliott, Project Manager • Ralph DeNisco, Principal in Charge • Liza Cohen, Parking Specialist • Hongyi Duan, GIS Analyst • Joe Polacek, Urban Planner PHASE 1 SCOPE OF SERVICES TASK 1 – PROJECT COORDINATION 1.1 Staff Kick-Off Workshop Upon finalizing the contract, we recommend kicking off the project with a workshop of the City staff and Downtown Parking Commission members closest to the day-to-day workings of parking operations and regulations. Beth Elliott, Joe Polacek, and Ralph DeNisco will attend and facilitate the workshop. We will gather all appropriate digital data and materials, such as GIS mapping, previous plans, and existing ordinances, and begin discussions about project objectives, refining Stantec | City of Stillwater Parking System Efficiency Study the scope of work and schedule, and setting realistic expectations. From this workshop, we will emerge with a detailed understanding of your most recent needs and challenges and direct guidance on how best to focus the research component of the project. 1.2 Staff Check-ins Check-in interaction with City staff will occur on a weekly basis throughout the project. Beth Elliott will be your main point of contact and Ralph DeNisco will join in at major project milestones or to brainstorm opportunities and challenges that might arise. We will verify timing and logistics as well as resolve any emerging issues that might arise during the process. 1.3 Project Management and Administration Throughout the duration of the project, the Stantec team will coordinate with the City of Stillwater to complete the documented tasks and services. At the outset, we will establish clear timelines and a regular meeting schedule. For us, project management is vital and must be provided as an ongoing activity throughout the project. TASK 2 – ENGAGEMENT 2.1-2.3 Downtown Parking Commission Meetings As the body charged with development and implementation of the Downtown Parking Plan, the Downtown Parking Commission will be our main point of interaction and engagement are key milestones throughout the project— utilization key findings, draft recommendations, and final deliverables. Beth Elliott and Ralph DeNisco will attend all meetings in person to work through issues, get on-the-ground advice on what is working and what is not, test new ideas, and get the pulse on what can realistically be implemented. As our modeling expert, Liza Cohen will join the discussion on utilization so we discuss the data and subsequent analysis necessary for successful outcomes. 2.4 Meeting Summaries We will develop technical memorandums that memorialize the content and feedback of each Downtown Parking Commission meeting. Since parking inventory and demand in Downtown Stillwater will continue to be an evolving topic of study, we want to offer transparency of this process and outcomes to future parking initiatives. TASK 3 – EXPLORATION 3.1 Data Collection and Mapping Based on a note in your comprehensive plan, Downtown Stillwater had an inventory of 3,440 parking spaces as of 2016. Since factual information is the basis for every successful parking study, we will evaluate and test all inventory and utilization work you’ve done over the last few years so we can start from a solid base of facts. Liza Cohen and Hongyi Duan will work hand-in-hand to review what you already have and rely on City staff and the Downtown Parking Commission to guide any need for additional field work for this project. Not only will this data collection be critical for setting a sound base of a utilization study, but we will use it as a comparison to the outcomes of the parking generation model. 3.2 Review Existing Regulatory Framework and Funding Strategies Beth Elliott will begin this task with an annotated outline of your existing parking regulatory framework to make sure we know 15 We meet you where you live, shop, and play to make sure the community’s voice is heard. 18 Stantec | City of Stillwater Parking System Efficiency Study 18 Stantec | City of Stillwater Parking System Efficiency Study where we are starting from. This will include a review of your parking mitigation program. We will then work with City staff to determine areas of improvement and strategize potential revisions. Ralph DeNisco will evaluate the existing funding context, including a thorough review of your Enterprise Fund and other sources of financial input and output related to your parking system. Beth Elliott will apply her public sector experience as the Downtown Minneapolis planner for more than a decade to additional analysis and brainstorming on using existing regulatory and funding tools more efficiently and effectively. 3.3 Peer Review As outlined in the RFP, the Stantec team will research up to five similar downtowns to compare parking requirements, district- wide parking models, pricing structures, and financial mechanisms. Our depth and breadth of background in parking studies means many of these peer cities are in our own portfolio. 3.4 Employee Survey Since surveying employees is an identified priority, we propose that Hongyi Duan develop an interactive online survey that can then be promoted to businesses and employees either via email or flyers. Our goal is to collect observations on areas of high parking demand and what times of day feel busiest. We will also ask employees about their driving and parking habits to not just determine how many employees work Downtown, but when, where, and how long they park and during which seasons. 3.5 Parking Generation Model This is where the Stantec team is truly a differentiator in accomplishing a successful parking study of Downtown. Liza Cohen has built a custom shared parking generation model to evaluate land use and parking demand in a more granular way than can be done through using either the Institute of Transportation Engineers (ITE) or Urban Land Institute (ULI) models. Overall parking demand is a function of many factors—geography, walkability, economic vitality, transit access, safety and the interaction between these uses. Historically, land use has been the primary driver of expected parking demand. Nevertheless, in mixed-use environments, especially within walkable urban centers, we have typically found that actual observed parking demand is much less than what may be expected based upon zoning or typical parking generation manuals. Using the data collected in Task 3.1, Stantec will calibrate a parking model based on national standards as well as Stillwater-specific parking patterns for a scenario-based parking demand analysis. We will begin this task by creating a land use inventory and classify the uses by ITE codes for modeling purposes. We will apply what we learned about your zoning code from Task 3.2 and then compare expected parking demand with observed parking utilization counts you’ve done recently. The model will be a localized, specific Downtown Stillwater parking generation rate through the day and will demonstrate the relationship between today’s parking supply and demand along with additional contextual factors such as internal capture, reserved parking, and multimodal access. We will work with City staff and the Downtown Parking Commission to develop up to two build-out scenarios to model—it is often helpful to model to “extreme” scenarios to understand the bounds of what may change in terms of parking demand (i.e. seasonality). The scenarios will be based on a 5-10 minute walk area and include an assessment of mode share change impacts like rideshare and increased walking/biking that might shift parking demand. Finally, we will develop projections for parking needs including cost, mode share, and policies. Presenting a comprehensive picture of parking activity in both space and time reveals patterns and consistency of available spaces, which in turn reveals the efficiency of land used for parking. TASK 4 – STRATEGIES AND RECOMMENDATIONS 4.1 Event Parking The Downtown Parking Commission is getting more and more requests related to new events—can the event organizers use on- and off-street parking locations for staging and routing, where do event visitors park, and how does the event positively and negatively impact the day-to-day functionality of local businesses. Based on our experiences and the peer review in Task 3.3, we will develop strategies for managing event-related parking constraints that will provide equitable decision-making tools to the Downtown Parking Commission. 4.2 Employee Parking Based on the results of the survey in Task 3.4, we will have a good understanding of not just how many employees work in Downtown but how and when they park. We will work with you to develop strategies for managing employee parking needs, including finding opportunities for improving mode split. 4.3 Enterprise Fund Evaluation The Enterprise Fund is a valuable tool for not only managing parking assets but building revenue for capital expenditures. Our Stantec team conducted a similar assessment of Downtown Savannah’s parking fund and continue to work with the City of Savannah to 19 Stantec | City of Stillwater Parking System Efficiency Study develop an in-lieu parking system that balances parking and other mobility improvements. We will evaluate models like that in Savannah and other comparable cities to Stillwater, resulting in a funding tool we can use to compare these similar funding models. 4.4 Parking Framework The result of all work to-date will be a Downtown Stillwater Parking Framework that applies the best funding and operations lessons from comparable cities in phased action plan. Strategies will likely identify elements such as parking supply, pricing, improved technology, parking regulations, management, enforcement, and financial strategies. The ultimate goal will be strategies that together maximize downtown’s parking supply today and in the future. Our team understands how parking lies at the intersection of mobility and place - we will apply our expertise and knowledge of other cities to a customized approach for Downtown Stillwater. 4.5 Technical Memo – Parking Strategies and Recommendations We will prepare a memorandum that lays out findings from each task, input from the three Downtown Parking Commission meetings, and the resulting phased action plan. TASK 5 – DELIVERABLES 5.1 Draft Report Our team will draft a technical memorandum providing information about the process, findings, and recommendations from each phase. The memo will include an appendix with all GIS files, presentations, and Excel files. 5.2 City Council Meeting Beth Elliott will attend a City Council meeting to present the study process, findings, and recommendations. A key component of this discussion will be to gain feedback on the phased action plan. TASK SIX – OPTIONAL TASKS 6.1 Comprehensive Inventory Assessment If the Project Team and City staff agree that a robust inventory is needed, we will conduct a field survey of on-street and off-street parking facilities. This is not just about knowing where public and private parking is located, but we also want to understand all the regulations that apply based on geographic location. The product of this task is often one of the most useful tools that a City gains from a Parking Study. The data will be in a GIS-editable format and can easily be translated into an interactive Google map if necessary. Having the City’s parking resources and regulations mapped in one place gives a municipality a starting point for a range of efforts. 6.2 Utilization Study Our approach to data collection is to capture the demand fluctuations of a “typical” day. If the Project Team and City staff agree that the Downtown Parking Commission’s 2015 parking counts would benefit from a new methodology or new eyes, we will conduct field surveys of parking accumulation in all spaces identified in the Parking Inventory. Stantec and City staff would work together to pick days that avoid special events, school vacations, significant road closures, etc. We also strive to schedule data collection flexibly in case of a weather event. The team will map the data using the same GIS-ready database identified in Task 5.1. This allows us to quickly create user-friendly maps that clearly show us patterns over time. 6.3 Additional Engagement Meetings If the project could benefit from more engagement meetings with the Downtown Parking Commission or other stakeholders, we would be happy to support those needs. 6.4 Review Current and Recent Plans In order to bolster the parking generation model in Task 3.5, we can summarize existing neighborhood, transportation, and development plans for land use and parking information. We would also like to analyze recent permitting document, including estimated square footage by use. PHASE 2 SCOPE OF SERVICES Converting the strategies and recommendations developed in Phase 1 into plans for implementation requires several additional steps. The Stantec team is experienced in developing the framework for implementation, including identifying necessary actors, sequential steps, and potential costs for each recommendation. Policy language, administrative changes, physical assessments, and other elements are typically part of a detailed implementation plan. We will work with you to develop a scope that includes these tasks as well as robust stakeholder engagement to reach the consensus necessary to implement the study’s recommendations. We will also scope zoning amendments, wayfinding and signage, and shared parking agreements. 20 Stantec | City of Stillwater Parking System Efficiency Study We are committed to working with Stillwater’s Downtown Parking Commission to identify strategies to efficiently use existing parking capacity in the downtown public parking system. %2$5'$*(1'$ %RDUGRI&RPPLVVLRQHUV )UDQ0LURQ'LVWULFW 6WDQ.DUZRVNL&KDLU'LVWULFW *DU\.ULHVHO'LVWULFW :D\QH$-RKQVRQ'LVWULFW /LVD:HLN'LVWULFW -XO\$0 Assistive listening devices are available for use in the County Board Room If you need assistance due to disability or language barrier, please call (651) 430-6000 EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER :DVKLQJWRQ&RXQW\5HJLRQDO5DLO$XWKRULW\ $5ROO&DOO %3OHGJHRI$OOHJLDQFH &$SSURYDORI5HJLRQDO5DLO$XWKRULW\0LQXWHVIURP)HEUXDU\ ' ([HFXWHDQDJUHHPHQWZLWK:DVKLQJWRQ&RXQW\5DPVH\&RXQW\DQG5DPVH\&RXQW\ 5HJLRQDO5DLO$XWKRULW\WRIRUPD*ROG/LQH-RLQW3RZHUV%RDUG ($GMRXUQ 5ROO&DOO &RPPHQWVIURPWKH3XEOLF 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. 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Commissioners may elect to pull a Consent Calendar item(s) for discussion and/or separate action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ssistive listening devices are available for use in the County Board Room If you need assistance due to disability or language barrier, please call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ashington : :County Assistive listening devices are available for use in the County Board Room If you need assistance due to disability or language barrier, please call (651) 430-6000 EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER $$GRSWDUHVROXWLRQDFFHSWLQJWKHQGTXDUWHUGRQDWLRQV %5HYLHZ1DWLRQDO$VVRFLDWLRQRI&RXQWLHV1$&R$ZDUGVUHFHLYHGE\:DVKLQJWRQ&RXQW\ &RPPLVVLRQHU5HSRUWV&RPPHQWV4XHVWLRQV 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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ashington : :County STILLWATER TOWN BOARD MEETING July 11, 2019 Town Hall 7:00 P.M. PRESENT: Chairperson Sheila-Marie Untiedt, Supervisors Rod Hunter, Tim Sinclair, Bonnie Haines and Mike McMahon, Clerk Kathy Schmoeckel, Treasurer Marsha Olson and Chief of Police Steve Nelson 1. AGENDA – M/S/P Haines/Sinclair moved to adopt the agenda as amended. (5 ayes) 2. MINUTES – M/S/P Haines/Hunter moved to approve the June 13, 2019 Stillwater Town Board Meeting minutes as written. (5 ayes) 3. TREASURER – a. Report given. b. Checks and Claims – Checks and Claims #44011 through #44030 were approved for payment. 4. ENGINEER – Engineer John Mazzitello had given an update the following:  94th and Neal – Schifsky will work on the culvert repair/installation.  Arcola Drive – The erosion has been repaired. We should divert the water towards the top of the hill, add an additional layer of soil reinforcement grid and fil l with class 5 gravel with calcium chloride treatments. H e will put together specifications and get quotes from Schifsky and Raleigh for work this fall when it is dryer.  Mendel Culvert – He does not see any evidence of erosion or undermining of the culvert bedding. He believes the dip in the pavement is from se ttling of the culvert. He would like to watch the culvert and dip through the summer and if the dip reappears this fall/winter, we can address them. We could overlay Mendel to fill in the dip and continue observation to see if there is further movement, or we could monitor until fall and potentially dig up and re -lay the culvert in November.  Resident on Mendel – A resident had concerns with drainage on his property. He said there is a culvert under Mendel about ½ mile north of the dipped culvert, and that culvert is no longer functioning. He has looked through all of their records and found no evidence of a culvert being where he claims. There is a significant amount of water collecting on his property and a culvert in the location identified would solve the problem.  Maintenance Contract – He should have a draft snow removal contract by the end of July with a street and trial maintenance contract following shortly thereafter. 5. PLANNER – a. Grant 2040 Comprehensive Plan – The Planner has reviewed the City of Grant’s Comprehensive Plan and found nothing of concern as i t relates to Stillwater Township. M/S/P Sinclair/McMahon moved to authorize the Chair to sign the letter stating that we do not have concerns. (5 ayes) Stillwater Town Board Mtg. – 7/11/19 Page 2 6. STONEBRIDGE TRAIL – Residents were present to discuss issues with truck traffic on Stonebridge Trail from the Raleigh pit. Sheila -Marie Untiedt had asked the County to get involved since we do not have the enforcement power that they do. There seems to be a lot of uncovered trucks which all seem not to be either Miller or Raleigh trucks. The residents expressed concerns that their issues are not being addressed. They believe that this business is not in compliance with our Vision Statement. Their business continues to expand over time. Stonebridge is getting the brunt of the number of trips. This is an enormous impact on the community. What is the point of an AOP? There needs to be a remedy. Their AOP says that we can require them to do traffic counts and video surveillance at their expense. We can ask for updated haul numbers. Sheila - Marie Untiedt will talk to Steve Sinclair of Miller Excavating and see where we will go from there. Steve Nelson will talk to Sheriff Starry. 7. CHIEF OF POLICE – a. Report given. There were 8 bu rning permits in June. No dogs were impounded. A total of 84 complaints were received in June. b. Bear Sighting – Our local bear continues to be active in the area. Sightings have been in the Perkins Avenue, Primrose Avenue and St. Croix Trail neighborhood s. c. Arcola Heights Park – He continues to monitor the park and found no problems. d. Special Events Permit – No Special Events are scheduled for July. e. Fairy Falls Parking – There had been a number of complaints about large gatherings at the falls over the 4th of July weekend. The main complaint was about parking on Orwell Court. All vehicles on the east side of the road are parked illegally, but no citations were issued due to the overgrown brush covering the ‘No Parking” signs. Chief Nelson will have the brush removed. 8. PARK COMMITTEE – Bonnie Haines reported on the recent Park Committee meeting. The picnic is scheduled for August 11 from noon to 3:00. They are looking for help. Barb Riehle will be asked to set up Sign -Up Genius for picnic help. 9. LETTER OF SUPPORT FOR HWY36/MANNING AVENUE PROJECT – M/S/P Sinclair/McMahon moved to authorize the Board to sign the letter of support for this project. (5 ayes) 10. LAKELAND MAYOR GRASGOW – Sheila-Marie Untiedt had written a critical letter to Mayor Glasgow as a private citizen. Mr. Glasgow has requested that the Town Board issue a statement that this letter is not supported by the entire Stillwater Township Board. The Board discussed this and their consensus was that a response is not necessary. 11. ADJOURNMENT –The meeting was adjourned at 8:40 p.m. Stillwater Town Board Mtg. – 7/11/19 Page 3 Clerk______________________________________ Chairperson_________________________________ Approved___________________________________