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City Council Agenda Packet 07-13-2015AGENDA REGULARMEETING–MONTICELLOCITYCOUNCIL Monday,July13,2015–6:30p.m. MississippiRoom,MonticelloCommunityCenter Mayor:BrianStumpf CouncilMembers:CharlotteGabler,LloydHilgart,TomPerraultandGlenPosusta 1.GeneralBusiness A.CalltoOrder&PledgeofAllegiance B.ApprovalofMeetingMinutes •RegularMeetingMinutesfromJune22,2015 C.ConsiderationofAddingItemstotheAgenda D.CitizenComments E.PublicServiceAnnouncements/Updates •Riverfestwrap-up •CityVolunteerRecognitionPicnic(7/16) •MovieinthePark(7/25) F.CouncilLiaisonUpdates: •IEDC,TAC,&BCOLmeetingscancelled •PersonnelCommittee(BS,CG) •PlanningCommission(CG) •EDA(LH,TP) G.DepartmentUpdates •SpecialMeeting/WorkshopReview(Mayor) •CityAdministrator(O’Neill) 2.ConsentAgenda A.Considerationofapprovingthepaymentofbills B.Considerationofapprovingnewhires/departures C.Considerationofapprovingthesaleordisposalofsurpluscityproperty SPECIALMEETING/WORKSHOP 5:00p.m.-2014Audit 5:30p.m.-SpaceNeedsWorkshop D.ConsiderationofapprovinguseofcommuterPark&Ridelotforoverflow parkingforafundraisingeventonAugust1st atRiverCityExtreme.Applicant: MAMLHockey E.ConsiderationofapprovingaSpecialEventPermitallowinguseofcommuter Park&RidelotandrelatedassistanceinconjunctionwithTasteoftheTown eventonSeptember10,2015.Applicant:MonticelloRotaryClub F.Considerationofapprovinganapplicationforaone-daytemporaryon-saleliquor licenseforMonticelloRotaryClubfortheTasteoftheTownevent G.ConsiderationofapprovingaSpecialEventPermitallowingexclusiveuseof WestBridgeParkandrelatedassistanceinconjunctionwiththeBrewfestevent Applicant:MonticelloLionsClub H.ConsiderationofauthorizingWSBandAssociatestopreparethePart2 amendmenttotheWellheadProtectionPlan I.ConsiderationofadoptingResolution#2015-053statingintenttoreimbursefrom bondproceedsfor2016StreetReconstructionImprovementsandadjusting maximumreimbursementamountsforPhosphorousReductionandOther ImprovementstotheWastewaterTreatmentFacility&Systemandfor miscellaneousimprovementprojectsincludingSchoolBoulevard/FallonAvenue andTH25/85thStreetImprovements J.ConsiderationofamendingtheRiversideCemeteryRulesandRegulationsto removeSection14.3.7regardingbanningofguns K.ConsiderationofadoptingResolution#2015-054acceptingquotesandawardinga contractforthe2015StreetPavementMarkingProject L.ConsiderationofadoptingOrdinanceNo.618amendingtheMonticelloZoning OrdinanceChapter3,Section7(E)(8)regulatingprincipalstructuresetbacksin non-riparianside,frontandrearyardsintheMississippiWild&Scenic RecreationalRiverDistrict.Applicant:CityofMonticello M.Considerationofapprovingtheindividualpensioncontributionamountfor VolunteerFirefighterReliefAssociationmembers N.ConsiderationofadoptingdatapracticespoliciesrequiredbyMNStatutes, Section13.025,relativetotheDataPracticesAct 2A.Considerationofitemsremovedfromtheconsentagendafordiscussion 3.PublicHearings -None 4.RegularAgenda A.Considerationofacceptingthe2014FinancialAuditreport B.ConsiderationofapprovingCitygrantmatchforaPhaseIXacquisitionatthe BertramChainofLakesRegionalPark/YMCACampManitou C.ConsiderationofapprovingacontractwithWSB&AssociatesfortheBertram ChainofLakesAthleticParkPlanningProjecttoincludeamastersiteplan, phasingplan,feasibilityreport,schematicgradingplan,andconstructiondesign, plansandcoordinationforinterimimprovements 5.AddedItems 6.Adjournment City Council Minutes – June 22, 2015 Page 1 | 13 MINUTES REGULAR MEETING – MONTICELLO CITY COUNCIL Monday, June 22, 2015 – 7 p.m. Mississippi Room, Monticello Community Center Present: Brian Stumpf, Charlotte Gabler, Lloyd Hilgart, Tom Perrault and Glen Posusta Absent: None 1. General Business A. Call to Order & Pledge of Allegiance The meeting was called to order by Mayor Stumpf at 7 p.m. with a quorum present. The pledge of allegiance was recited. B. Approval of Meeting Minutes  Regular Meeting Minutes from June 8, 2015 TOM PERRAULT MOVED TO APPROVE THE JUNE 8, 2015 REGULAR MEETING MINUTES AS CORRECTED. CHARLOTTE GABLER SECONDED THE MOTION. MOTION CARRIED 5-0. C. Consideration of Adding Items to the Agenda  Add 4A-1 Hockey Team Spec Event Permit (Angela Schumann)  XO and Yondoo contracts (Glen Posusta)  Liquor ordinances (Charlotte Gabler)  Cemetery (Tom Perrault) D. Citizen Comments  None E. Public Service Announcements  City Holiday Hours (7/4) – Angela Schumann reviewed the hours for the 4th of July holiday for various city offices. City Hall and Public Works offices will be closed. For dates and times of other offices, please check the website.  MCC Block Party (7/9) – Kitty Baltos announced the annual block party on Thursday, July 9 from 11 a.m. to 1 p.m. with food and activities. Sponsored by community center, city hall, national guard, senior center, FiberNet, and the Monticello Times.  Downtown Block Party – Brian Stumpf announced the Downtown Block Party will take place on Wednesday, July 8 evening on Walnut Street and the Third Street parking lot.  Riverfest (July 9-12) – Tom Moores talked about the various Riverfest events which kick off on July 9th at Pioneer Park with many family activities. Friday July 10th will feature a talent show and fireworks. Saturday, July 11th starts with a 5K Run, Art in the Park, beanbag tournament, and concludes with the Street Dance at MCC with Fabulous Armadillos. Sunday, July 12th begins with a worship service, the Riverfest parade, and festivities in Ellison Park City Council Minutes – June 22, 2015 Page 2 | 13 including chicken dinner, Citizen of the Year recognition, Royalty coronation, duck race, and more. Ducks can be adopted at businesses around town. Tom Perrault noted that the Citizen of the Year is former mayor Clint Herbst. F. Council Liaison Updates  Brian Stumpf (MCC, FAB, Personnel) – FAB: discussed recent outages; 47 applications received for Business Manager, reviewed customer service rating for Golden West after hours tech support at 87%. MCC: RFPs sent out for banquet service providers, concern about minimum wage increases and impact on budget for 2016. Personnnel: completed final interviews for City Clerk, offered Building Official position to John Rued and he will start July 13th, Water Department interviews will take place at a future date. Brian Stumpf mentioned he attended Mayor’s meeting for Wright County. On June 24th, Stumpf and Hilgart will sit in on a discussion regarding a contract with Yondoo. Brian Stumpf reported he sat in on the interviews for the RFP presentations for BCOL Athletic Field Complex.  Charlotte Gabler (FAB, Personnel, Library Board) – FAB: criteria for notifying customers; will need to update governance ordinance. Library Board: digital circulation continues to climb; reported on programming.  Lloyd Hilgart (EDA) – no report  Tom Perrault (EDA) – approved EDA Work Plan  Glen Posusta (BCOL RFP) – no report G. Department Updates  City Administrator (O’Neill) – Staff is planning to enter a float into the Riverfest parade (includes DMV, MCC, FiberNet, and Library). Xcel is working on a settlement agreement with developers interested in larger solar garden projects, which may be limited to 5 MW (roughly equal to 40 acres). Jeff O’Neill is attending a MN Public Utilities Commission meeting on this. Jeff reported that FiberNet Business Manager interviews will take place fairly soon. 2. Consent Agenda LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS K, L, M, AND O. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5-0. A. Consideration of approving the payment of bills for June 22nd. Action Taken: Approve the bill and purchase card registers for a total amount of $799,983.00. B. Consideration of approving new hires/departures. Action Taken: Approve new hires and terminations for MCC and Liquor Store. City Council Minutes – June 22, 2015 Page 3 | 13 C. Consideration of adopting Resolution #2015-050 approving contributions from various donors for the Mississippi Rampage Softball Tournament at the City Ballfields in July. Action Taken: Adopt Resolution #2015-050 approving contributions for sponsorship of the Mississippi Rampage Softball Tournament on July 11-12, 2015: Cornerstone Chevrolet ($200), Apollo Insurance Agency ($400), Hawk’s Sports Bar and Grill ($100), Spring-Green Lawn Care ($200), Broadway Kwik Stop ($200), and Taco John’s ($200). D. Consideration of approving applications for a 2-day temporary on-sale liquor license and a charitable gambling permit for the Church of St. Henry’s fall festival on August 29-30, 2015. Action Taken: Approve the applications for a 2-day temporary onsale liquor license and a charitable gambling permit for the Church of St. Henry’s for their Fall Festival on August 29-30, 2015. E. Consideration of approving a Special Event Permit allowing use of city streets and related assistance for the Downtown Block Party on July 8th, 2015. Applicant: Monticello Chamber. Action Taken: Approve a Special Event Permit for a Downtown Block Party on Wednesday, July 8, 2015, allowing temporary closure of Walnut Street from 7 AM to 10 PM and use of public parking facilities, staff resources, and amenities as described in the application, contingent on the following.  Continued site coordination with City Street Superintendent.  Restoration of Third Street Parking Lot to satisfaction of Public Works Department.  Verification of notification of affected local businesses by permit holder.  Application for temporary sign permit for wastewater treatment site. F. Consideration of approving a Special Event Permit allowing use of city streets and related assistance for Art in the Park/Taste of Monticello on July 11th, 2015 at Ellison Park. Applicant: Monticello Chamber. Action Taken: Approve a Special Event Permit for the Monticello Chamber for Art in the Park/Taste of Monticello on July 11, 2015 at Ellison Park, allowing use of city streets and related assistance. G. Consideration of approving a Special Event Permit for outdoor entertainment at Chatter’s Bar & Grill on July 10-11, 2015. Applicant: Brooke Steffens/Chatters Restaurant. Action Taken: Approve a Special Event Permit for outdoor entertainment at Chatter’s Restaurant, Bar & Grill for July 10-11, 2015. H. Consideration of approving Special Event Permit allowing use of Ellison Park, West Bridge Park, Pioneer Park, and Community Center Parking Lot and related assistance in conjunction with the annual Riverfest celebration on July 9-12, 2015. Applicant: Riverfest Committee. Action Taken: Approve a Special Event Permit for the Riverfest Committee in conjunction with the annual Riverfest Community Celebration on July 9-12, 2015 allowing use of Ellison Park, West Bridge Park, Pioneer Park, Community Center parking lot, city rights of way, and related city staff assistance, contingent on the following. City Council Minutes – June 22, 2015 Page 4 | 13  Continued site plan and traffic coordination with Public Works and Wright County Sheriff’s Office.  Lot closure signage and notification in coordination with Street Superintendent as needed. I. Consideration of approving Special Event Permit for the Relay for Life fundraising event on July 17, 2015. Applicant: American Cancer Society. Action Taken: Approve a Special Event Permit for outdoor entertainment and activities at the Monticello Middle School for the annual Relay for Life on July 17, 2015, contingent on notification of St. Benedict’s facility and submission of an event certificate of liability insurance. J. Consideration of adopting Resolution #2015-031A amending language and replacing Resolution 2015-031 for filing a loan application with the Public Facilities Authority (PFA) for the Phosphorus Reduction and Digester Cover Improvements at the Waste Water Treatment Facility, City Project No. 14C002. Action Taken: Adopt Resolution #2015-031A amending language and replace Resolution #2015-031 for filing a loan application with the MN Public Facilities Authority for the Phosphorus Reduction and Digester Cover Improvements, City Project No. 14C002. K. Consideration of adopting Resolution #2015-051 accepting bids and awarding contract for the Phosphorus Reduction and Digester Cover Improvements at the Waste Water Treatment Facility, City Project No. 14C002. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. L. Consideration of adopting Ordinance #617 amending City Code, Title 1, Chapter 5 – Council as related to Council meeting start time. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. M. Consideration of authorizing a License Agreement between the EDA and City of Monticello for parking access at the former Cedar Street garden center property. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. N. Consideration of authorizing notification of contract non-renewal to Veolia Water for wastewater treatment plant services. Action Taken: Authorize city staff to provide a notification of contract non-renewal to Veolia Water for operations and maintenance services for the WWTF and authorize staff to research other service options, including staffing the plant with city employees. O. Consideration of adopting Resolution #2015-041A amending language and replacing Resolution #2015-041 as related to an affordable workplace townhome development on the former Ruff property (PID 155-500-101418). THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. City Council Minutes – June 22, 2015 Page 5 | 13 P. Consideration of approving participation in a professional development training series for supervisors, department heads, and emerging leaders. Action Taken: Approve participation in the professional development training series as proposed at a cost of $9,600. 2A. Consideration of items removed from the consent agenda for discussion 2K. Consideration of adopting Resolution #2015-051 accepting bids and awarding contract for the Phosphorus Reduction and Digester Cover Improvements at the Waste Water Treatment Facility, City Project No. 14C002 Tom Perrault questioned the amount from one of the bidders that was adjusted but not highlighted. Shibani Bisson explained that the figures are correct even though one of the figures did not get highlighted. LLOYD HILGART MOVED TO ADOPT RESOLUTION #2015-051 ACCEPTING BIDS AND AWARDING THE CONTRACT TO THE LOWEST RESPONSIBLE BIDDDER, DI-MAR CONSTRUCTION, IN THE AMOUNT OF $2,660,000 FOR THE PHOSPHORUS REDUCTION AND DIGESTER COVER IMPROVEMENTS AT THE WASTE WATER TREATMENT FACILITY, CITY PROJECT NO. 14C002. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5-0. 2L. Consideration of adopting Ordinance #617 amending City Code, Title 1, Chapter 5 – Council as related to Council meeting start time Tom Perrault removed this item because he would like to keep the meeting time at 7 p.m. to allow time for commuters to get to meetings. Brian Stumpf suggested those citizens could contact city hall if time is an issue. CHARLOTTE GABLER MOVED TO ADOPT ORDINANCE NO. 617 AMENDING CITY CODE, TITLE 1, CHAPTER 5 – COUNCIL AS RELATED TO COUNCIL MEETING START TIME AND MEETING SITE AND APPROVE A CHANGE TO THE REGULAR MEETING SCHEDULE FOR COUNCIL AND COMMISSIONS TO REFLECT A STARTING TIME OF 6:30 P.M. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 4-1 WITH TOM PERRAULT VOTING IN OPPOSITION. 2M. Consideration of authorizing a License Agreement between the EDA and City of Monticello for parking access at the former Cedar Street garden center property Glen Posusta removed this item because he was concerned about use of the property without a paved surface. Angela Schumann explained that the small paved portion of the property will be used and that is the same area that has been utilized in the past for overflow parking in the winter for East Bridge Park. She noted the parking area will be marked out. City Council Minutes – June 22, 2015 Page 6 | 13 GLEN POSUSTA MOVED TO AUTHORIZE STAFF TO PREPARE A LICENSE AGREEMENT FOR EXECUTION BY THE EDA EXECUTIVE DIRECTOR AND PRESIDENT AND THE MAYOR, WITH A TERMINATION DATE OF DECEMBER 31, 2016. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5-0. 2O. Consideration of adopting Resolution #2015-041A amending language and replacing Resolution #2015-041 as related to an affordable workplace townhome development on the former Ruff property (PID 155-500-101418) Tom Perrault stated that he opposes this project and intends to vote in opposition again. LLOYD HILGART MOVED TO ADOPT RESOLUTION #2015-041A AMENDING LANGUAGE AS FOLLOWS AND REPLACING RESOLUTION #2015-041 AS RELATED TO AN AFFORDABLE WORKPLACE TOWNHOME DEVELOPMENT ON THE FORMER RUFF PROPERTY. CHARLOTTE GABLER SECONDED THE MOTION. MOTION CARRIED 4-1 WITH TOM PERRAULT VOTING IN OPPOSITION. “WHEREAS, the City has made significant contributions to the proposed site by investments to improve the site; said contributions include application and administration of two Contamination Cleanup and Investigation Grants from the MN Department of Employment and Economic Development; and” 3. Public Hearings A. Public Hearing – Consideration of approving 2014 Storm Water Pollution Prevention Program (SWPPP) Annual Report Shibani Bisson explained that the approval of the SWPPP Annual Report requires a public meeting to provide an explanation of the program, present information and activities for the previous year, and obtain feedback from the public. She reviewed management practices and goals associated with minimum control measures for the City’s SWPPP. Some of the MS4 program activities for 2014 included: updated city zoning, subdivision, and illicit discharge ordinances; developed enforcement response procedures for illicit discharge and non- compliance; developed standard operating procedures for construction site inspections; and developed plan review and inspection checklists for department staff. Shibani Bisson noted that the renewal of the city’s stormwater discharge permit is not due until July of 2018. For 2015, the focus will be development of education and communications programs to increase awareness of stormwater best management practices for the public and staff training. Shibani Bisson noted that Council is requested to approve the 2014 annual report. City Council Minutes – June 22, 2015 Page 7 | 13 Brian Stumpf asked what the biggest maintenance item would be with stormwater ponds. Shibani Bisson mentioned that repair of flared end sections/pipes entering bonds, erosion, and sediment build up are a few of the concerns. Brian Stumpf asked about the funding required for that. Shibani Bisson replied that $40,000 has been budgeted annually and has been used in the past for pond projects, as public works staff time is limited for this type of work. Charlotte Gabler asked about updating the website and brochures, and Shibani indicated that is part of the 2015 goal with increased communications efforts. Lloyd Hilgart asked about the best practice for new construction sites with silt fences or biologs. Shibani Bisson stated that silt fences seem to work well and also delineates sites; biologs also work well for certain uses and are easy to move around a site. Glen Posusta commented on the successful ponding system that is in place and how well the ponds work in heavy rainfalls. Mayor Stumpf opened the public hearing. Steve Reishus, 4799 Farmstead Drive, stated he has noticed a grate in the area of his house does not seem to drain properly after heavy rainfalls. He will leave contact information for follow up by Shibani Bisson. There were no further comments so the Mayor closed the public hearing. GLEN POSUSTA MOVED FOR ALTERNATIVE #1 TO APPROVE THE 2014 SWPPP ANNUAL REPORT AS PRESENTED AND AUTHORIZE SUBMITTAL TO THE MPCA BY THE JUNE 30, 2015 DEADLINE. CHARLOTTE GABLER SECONDED THE MOTION. MOTION CARRIED 5- 0. B. Public Hearing – Consideration of approving the 5-year street reconstruction plan and use of GO Street Reconstruction bonds Wayne Oberg and Shibani Bisson presented a proposal to Council to approve a 5- year street reconstruction plan which would allow the City to issue bonds on a street reconstruction project that has less than 20% assessable costs. Wayne Oberg reviewed the proposed plan, described as follows: 2015-2020 STREET RECONSTRUCTION PLAN June 30, 2015 through June 30, 2016 Overlay Rural Outlying St – 85th Recon Only (STR-13-004) $125,000 Street Reconstruction Area 5 (STR-13-007) $500,000 TH25/CSAH75 Intersection Improvements (STR-14-001) $315,000 TOTAL $940,000 July 1, 2016 through June 30, 2017 E 7th Street/TH25 Intersection (STR-13-005) $450,000 Street Reconstruction Area 5 (STR-13-007) $4,000,000 City Council Minutes – June 22, 2015 Page 8 | 13 TOTAL $4,450,000 July 1, 2017 through June 30, 2018 Overlay Rural Outlying Streets (STR-13-004) $500,000 Street Reconstruction Area 5 (STR-13-007) $190,000 Street Reconstruction Area 6 (STR-13-008) $1,100,000 TOTAL $1,790,000 July 1, 2018 through June 30, 2019 Street Reconstruction Other $1,500,000 TOTAL $1,500,000 July 1, 2019 through June 30, 2020 TOTAL $0 SUBTOTAL (6/30/15 through 6/30/20) $8,680,000 Bond Issuance Costs $270,000 GRAND TOTAL $8,950,000 Wayne Oberg explained that street reconstruction bonds would allow the city to recover costs on the projects listed. Street reconstruction bonds could be used to reimburse costs for improvements such as: reclaim and pave streets, sidewalk and pathway improvements, pedestrian Improvements, tree plantings to fill in existing gaps, mailbox replacement, replace all signs to meet retro-reflectivity requirements, BNSF railway crossing upgrades, storm sewer improvements, other ROW related improvements. Glen Posusta asked about the road improvements for Area #6 that are listed in the plan. Shibani Bisson explained the streets that are included in Area 5 and 6 as well as other possible street improvements. Area 5 was described as: 3rd Street and 4th Street between TH 25 and Washington St; 6th Street between TH 25 and Cedar Street; Cedar Street from CSAH 75 to its south terminus; Palm Street, New Street, Wright Street, Hennepin Street between CSAH 75 and 4th Street; Ramsey Street and Washington Street between CSAH 75 and 7th Street; 7th Street between TH 25 and Washington Street; right turn lane on westbound 7th Street at TH 25 and associated retaining wall/landscaping and sidewalk relocation; 7th Street/TH 25 left turn signal improvements; and 7th Street pathway improvements. Area 6 was described as: Marvin Elwood Road, north and south of Prairie Road; Crocus Lane and Circle; and Hedman Lane. Other street improvement areas were described as: Cardinal Hills; Hart Blvd, Mississippi Dr.; Chelsea Road, Edmonson and Fallon Ave; River Mill area; and Klein Farms. Mayor Stumpf opened the public hearing. There were no comments so the public hearing was closed. Wayne Oberg noted the Street Reconstruction Plan can be modified at any time during the 5-year time frame. He also noted that approval of the motion requires 100% of council members present voting in favor. City Council Minutes – June 22, 2015 Page 9 | 13 CHARLOTTE GABLER MOVED FOR ALTERNATIVE #1 TO ADOPT THE 2015-2020 STREET RECONSTRUCTION PLAN THAT WAS PRESENTED WITH REVISIONS LISTED AS FOLLOWS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5-0. Addition to June 30, 2015 through June 30, 2016 TH25/85th Street Intersection Improvements $265,000 Change to July 1, 2018 through June 30, 2019 Street Reconstruction Other $1,235,000 4. Regular Agenda A-1. Consideration of approving a Spec Event Permit for MAML Hockey Team fundraising event at River City Extreme on August 1, 2015 Angela Schumann presented this item and explained the proposed fundraising event to be sponsored by the Monticello-Annandale-Maple Lake hockey team. Angela Schumann discussed the use of the parking lot for a concert, with the entertainment area to be enclosed with fencing to restrict access for patrons and alcohol. This is a first time event and they are hoping to draw 300-400 attendees. The hours proposed for the band to play are 8 p.m. to 12 a.m. which is allowed under a Special Event Permit if approved by Council. Angela Schumann pointed out possible parking concerns as there is no parking allowed on School Boulevard. The Sheriff’s Office is recommending that the hockey group hire two reserve officers to provide security for the event. Angela Schumann noted that all the concerns are identified in the conditions attached to the motion for approval. Brian Stumpf asked about the condition for notification of surrounding properties. Angela Schumann explained that is often required for private events. Brian Stumpf asked the presenters to introduce themselves and to verify that they understand the conditions of approval. Willie Harris from MAML requested that they be allowed to provide the security themselves instead of hiring deputies. He explained that he has been providing private security services for about 15 years. Kyle Oen explained that this is a first year event and they are trying to avoid extra expenses. Brian Stumpf suggested that Council could consider allowing them to provide their own security this year on a trial basis. If problems occur, it’s likely that they would be required to hire sheriff deputies for future events. Glen Posusta concurred with that. LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO APPROVE A SPECIAL EVENT PERMIT FOR MAML HOCKEY TEAM ALLOWING OUTDOOR ENTERTAINMENT AT RIVER CITY EXTREME ON SATURDAY, AUGUST 1, 2015, SUBJECT TO THE FOLLOWING CONDITIONS WITH ALLOWANCE FOR PROVIDING THEIR OWN City Council Minutes – June 22, 2015 Page 10 | 13 SECURITY. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5-0.  Continued coordination with City Clerk’s office regarding liquor licensing and insurance for the facility and event, and compliance with required regulations.  Compliance with the recommendation of the Wright County Sheriff’s Office and Street Superintendent regarding the application and on-site security. Applicants will be allowed to provide on-site security for this event on a trial basis.  Modify perimeter fencing to provide for internal access on the west side of the property, including access for emergency vehicles.  Notification of residential properties within 500 feet of the River City Extreme property regarding the event.  Secure a letter of permission from Monticello Theatre for overflow event parking and provide details of signage and promotion for the overflow parking. A-2. Consideration of adopting Resolution #2015-052 authorizing preparation of a Feasibility Report for the 2016 Street and Utility Reconstruction Project Shibani Bisson summarized the request for authorization to prepare a feasibility report for the 2016 Street and Utility Reconstruction Project. She provided a presentation showing the project area and describing specifics about the project, including 7th Street and TH 25 intersection improvements. She noted that staff is working with MnDOT on providing a left turn arrow from 7th Street to TH 25 as an interim measure in 2015. The 2016 project would include a flashing yellow arrow at the intersection. Glen Posusta suggested that the feasibility report should also look at right turns onto 7th Street from TH 25. Shibani Bisson stated they can look at incorporating that into the study. Shibani Bisson reviewed a list of street and utility improvements to be included in the feasibility report: Street Improvements  3rd Street and 4th St between TH 25 and Washington St  6th St between TH 25 and Cedar St  Cedar Street from CSAH 75 to its south terminus  Palm St, New St, Wright St, Hennepin St between CSAH 75 and 4th St  Ramsey St and Washington St between CSAH 75 and 7th St  7th St between TH 25 and Washington St. Improvements at the 7th St and Washington St intersection will be evaluated to minimize re-building the roadway with the future Fallon overpass construction  Right turn lane on westbound 7th Street at TH 25 and associated retaining wall/landscaping and sidewalk relocation.  7th St/TH 25 left turn signal improvements  7th Street pathway improvements  Evaluate on-street parking needs along 7th Street  Sidewalk and pedestrian ramp/crossing improvements within the entire area and potential sidewalk extensions City Council Minutes – June 22, 2015 Page 11 | 13  Evaluate access and pedestrian connections with School District  4th St parking lot improvements  Tree plantings to fill in existing gaps  Replace all signs to meet retro-reflectivity requirements  BNSF railway crossing upgrades  Evaluation of street lighting needs Utility Improvements  Storm sewer pipe and structure improvements, address known drainage issues  Evaluate where feasible to implement stormwater infiltration and treatment  Sanitary sewer improvements to include mainline replacements/lining, sewer service replacements, manhole casting and ring replacement  Watermain improvements as needed to address main breaks/service issues  Hydrant and valve replacement  Evaluate burying overhead power on 3rd and 4th Streets  Conduit crossings installed where needed for private utilities and Fibernet Shibani Bisson noted that the project is anticipated to cost approximately $5,750,000 for Area 5. Funding sources will likely include special assessment to benefitting properties, eligible state aid funds, and proposed street reconstruction bonds. Assessments for the project will be based on the standard residential and non-residential rates, which was $4,000 per residential unit and 100% of the front footage cost for non-residential lots for the 2011 reconstruction project. Generally, the City has applied a 5% increase to the rates, and that will be evaluated in the feasibility report. GLEN POSUSTA MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION #2015-052 AUTHORIZING PREPARATION OF A FEASIBILITY REPORT FOR THE 2016 STREET RECONSTRUCTION PROJECT, STUDY TO INCLUDE A DEDICATED RIGHT TURN LANE ON NORTHBOUND TH 25 ONTO 7TH STREET EAST. CHARLOTTE GABLER SECONDED THE MOTION. MOTION CARRIED 5-0. B. Consideration of authorizing development of a contract with WSB & Associates for the Bertram Chain of Lakes Athletic Park Planning Project to include a master site plan, phasing plan, feasibility report, schematic grading plan, and construction design, plans and coordination for interim improvements Angela Schumann discussed the process for receiving and reviewing requests for proposal for the BCOL Athletic Park. Interviews were conducted by a steering committee which was also attended by members of the Parks Commission and City Council. At this time, City Council is asked to authorize development of a contract with WSB and Associates for the project, which would include a master site plan and schematic grading plan along with construction plans. The proposed City Council Minutes – June 22, 2015 Page 12 | 13 contract would be brought back to Council for approval at the first meeting in July. Brian Stumpf publicly thanked the firms that submitted proposals to the City for this project. He also thanked the Steering Committee for their work on reviewing the proposals and conducting the interviews. LLOYD HILGART MOVED FOR ALTERNATIVE #1 AUTHORIZING DEVELOPMENT OF A CONTRACT WITH WSB & ASSOCIATES FOR THE BERTRAM CHAIN OF LAKES ATHLETIC PARK PLANNING PROJECT, TO INCLUDE A MASTER SITE PLAN; PHASING PLAN; FEASIBILITY REPORT; SCHEMATIC GRADING PLAN; AND CONSTRUCTION DESIGN, PLANS, AND COORDINATION FOR INTERIM IMPROVEMENTS. CHARLOTTE GABLER SECONDED THE MOTION. MOTION CARRIED 4- 1 WITH TOM PERRAULT VOTING IN OPPOSITION. C. Consideration of accepting state bid and approving purchase of a 2015 Case-IH Farmall Tractor with side and rear flail mowers and snow wing plow, which would replace 1987 and 1999 tractors Tom Moores presented this item asking Council to replace two old public works tractors and purchase a new 2015 Case-IH Farmall tractor which would include mowing and plowing attachments to allow year round use for mowing and snow removal. Tom Moores discussed the possibility of either trading in the old tractors or putting them out on auction. Tom Moores also talked about the process for outfitting the new tractor. Once the tractor is purchased, it would be sent to South Dakota for outfitting. The City would not be responsible for payment until the tractor is completed. Tom Moores explained how the auction process would work; they would put the old tractors up for bid with a reserve price of $16,000. The reserve price would guarantee getting at least that amount in a bid; if the bid would be less, the tractors would be accepted as a trade-in through Trueman-Welters. Brian Stumpf asked if there were any stipulations for sales of equipment that would be greater than $10,000. Wayne Oberg explained that a formal bid process is only required if pricing would be greater than $100,000. GLEN POSUSTA MOVED FOR ALTERNATIVE #1TO ACCEPT THE STATE BID PRICING FROM TRUEMAN-WELTERS AND APPROVE THE PURCHASE OF A 2015 CASE-IH FARMALL TRACTOR FOR $55,529, DIAMOND MOWER SIDE AND REAR FLAIL MOWERS FOR $30,255, AND HLA 4200 SNOW/WING PLOW FOR $16,358.10, FOR A TOTAL OF $102,142.10. THE 1987 FORD 4610 TRACTOR AND 1999 NEW HOLLAND TN-55 TRACTOR WITH ATTACHMENTS WOULD BE SOLD AT AUCTION City Council Minutes – June 22, 2015 Page 13 | 13 WITH A RESERVE PRICE OF $16,000. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5-0. 5. Added Items  XO and Yondoo contracts - Glen Posusta brought up the topic of the broadband contract that was approved by Council at a previous meeting. He had talked to Bryan Rabe at FiberNet about the need to expand the available broadband. In his research, he found that Yondoo may require more broadband for video services, which he felt could be detrimental. In addition, it appears that Yondoo may also have requirements that could negatively impact customers. Glen Posusta feels that it will not be possible to achieve an additional 1,000 video customers to offset the immediate $65,000 payment. Glen Posusta suggested that they survey FiberNet customers to find out what their preferences are for video services. Jeff O’Neill explained some of the past discussions that took place regarding expanding broadband service, at a meeting where Posusta was present. The broadband topic has been researched for some time and the arrangement with Windomnet was found to be the best option for FiberNet. Various council members commented on the necessity for expanded bandwidth and the options for video service. After a lengthy discussion, Brian Stumpf asked Glen Posusta to provide the information on Yondoo to him and Lloyd Hilgart. They will take that into consideration when negotiating a contract with Yondoo.  Liquor ordinances - Charlotte Gabler asked about updating the liquor ordinances to reflect earlier serving hours on Sunday and any other allowances in recent legislation. Cathy Shuman asked if they are interested in updating the liquor ordinances overall, in addition to Sunday hours. Council directed staff to review all the liquor ordinances and bring back to Council in October.  Cemetery maintenance - Tom Perrault noted that he received a call that the cemetery lawn maintenance provider is tearing up the landscaping. Brian Stumpf noted that Parks staff has been asked to look into this. 6. Adjournment CHARLOTTE GABLER MOVED TO ADJOURN THE MEETING AT 8:44 P.M. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5-0. Recorder: Catherine M. Shuman ___ Approved: Attest: __________________________ City Administrator CityCouncilAgenda:07/13/15 1 2A.ConsiderationofapprovingpaymentofbillregistersforJuly13th (WO) A.REFERENCEANDBACKGROUND: Citystaffsubmitstheattachedbillregistersandpurchasingcardregistersforapprovalby Council.Thebillregisterscontainallinvoicesprocessedandthepurchasingcard registerscontainallcardpurchasesmadesincethelastCouncilmeeting.SubjecttoMN Statutes,mostinvoicesrequireCouncilapprovalpriortoreleasingchecksforpayment. ThedayfollowingCouncilapproval,paymentswillbereleasedunlessdirected otherwise.AcreditpurchasingagreementandpolicywasapprovedbyCouncilinitially andcardpurchasesmustcomplywiththepolicy. IfCouncilhasnoquestionsorcommentsonthebillandpurchasecardregisters,thesecan beapprovedwiththeconsentagenda.Ifrequested,thisitemcanberemovedfrom consentanddiscussedpriortomakingamotionforapproval. A1.BudgetImpact:None A2.StaffWorkloadImpact:Noadditionalworkrequired B.ALTERNATIVEACTIONS: 1.Motiontoapprovethebillandpurchasecardregistersforatotalamountof $239,010.34. 2.MotiontoapprovetheregisterswithchangesdirectedbyCouncil. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1or#2,perdirectionofCouncil. D.SUPPORTINGDATA: Billregisters PurchaseCardregisters User: Printed:07/08/2015 - 1:27PM Julie.Cheney Computer Check Proof List by Vendor Accounts Payable Batch:00202.07.2015 - 00202.07.2015 AP Invoice No Description Amount Payment Date Acct Number Reference Vendor:3974 A+ TAXI OF MONTICELLO INC Check Sequence: 1 ACH Enabled: True 20130671 June 2015 - 604 rides 3,333.33 07/14/2015 101-45178-431990 3,333.33Check Total: Vendor:1021 AME RED E MIX INC Check Sequence: 2 ACH Enabled: False 102849 ZPARKS-HUNTER - (6) units R000000 3000 for playground 913.00 07/14/2015 229-45202-453010 913.00Check Total: Vendor:1977 ANCOM COMMUNICATIONS INC Check Sequence: 3 ACH Enabled: False 53519 Pager- rep vloume, func. switches, reflowed boards; Battery 116.50 07/14/2015 101-42200-440440 53520 Pager- rep vloume, func. switches, reflowed boards; 95.00 07/14/2015 101-42200-440440 53521 Pager- rep vloume, func. switches, reflowed boards; 95.00 07/14/2015 101-42200-440440 53522 Pager- rep vloume, func. switches, reflowed boards; Battery 128.50 07/14/2015 101-42200-440440 435.00Check Total: Vendor:3991 ANOKA RAMSEY COMMUNITY COLLEGE Check Sequence: 4 ACH Enabled: False 00383889 OSHA & Seasonal Training 6/10/15 Contract #682 1,125.00 07/14/2015 101-41800-431960 1,125.00Check Total: Vendor:1038 APPERTS FOOD SERVICE Check Sequence: 5 ACH Enabled: False 507030567 Hot dogs (12 cases) & chips for block party 734.88 07/14/2015 101-45130-444100 507030568 Freight 5.00 07/14/2015 226-45122-433300 507030568 Friendship Island food & snack items 337.20 07/14/2015 226-45127-421981 1,077.08Check Total: Vendor:1062 BEAUDRY OIL COMPANY Check Sequence: 6 ACH Enabled: True 366496 Dev Delo 400 - (161.4 gal) 10W30; Chev Multi EP 5 80w90 (5gal) 1,901.05 07/14/2015 101-43127-421300 1,901.05Check Total: AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 1 Invoice No Description Amount Payment Date Acct Number Reference Vendor:1065 BELLBOY CORPORATION Check Sequence: 7 ACH Enabled: True 48980900 resale - wine 420.00 07/14/2015 609-49750-425300 48980900 resale - liquor 343.25 07/14/2015 609-49750-425100 48980900 freight 14.40 07/14/2015 609-49750-433300 48987600 freight 0.90 07/14/2015 609-49750-433300 48987600 resale - wine 56.00 07/14/2015 609-49750-425300 834.55Check Total: Vendor:1067 BERNICK'S Check Sequence: 8 ACH Enabled: False 106029 Resale - pop, water, Gatorade 634.10 07/14/2015 226-45127-425410 109087 Water for parties 12.80 07/14/2015 226-45127-421460 109087 Resale 102.00 07/14/2015 226-45127-425410 109099 Resale 153.00 07/14/2015 226-45203-425410 112162 Resale 180.40 07/14/2015 226-45127-425410 8461 Coffee 332.04 07/14/2015 101-41940-420990 1,414.34Check Total: Vendor:1865 JOSH BERTHIAUME Check Sequence: 9 ACH Enabled: True 06152015 lunch reimbursement 6/11/15 - Sup. School- Parks 15.93 07/14/2015 101-45201-433100 15.93Check Total: Vendor:2576 BIG LAKE LUMBER Check Sequence: 10 ACH Enabled: False 20046277 (4) pointed lath- 25pc bundles 59.60 07/14/2015 101-43120-422600 59.60Check Total: Vendor:2535 BORDER STATES ELECTRIC SUPPLY Check Sequence: 11 ACH Enabled: True 909500129 (4) LEV- 5F100-6vc Scapc 3DPLX 6F Sm Plate 184.43 07/14/2015 656-49877-421800 909500129909530 (10) 12v Backup 2Prong 574.14 07/14/2015 656-49877-421800 909530743 (8) Combo Wan Gateway 742.27 07/14/2015 656-49877-421800 909569797 (100) cable tie 17.37 07/14/2015 656-49877-421990 909569798 (100) Jack 8C8P Data W/ Bezel 261.60 07/14/2015 656-49877-421800 909577308 (900) PAN - Cable Tie 161.26 07/14/2015 656-49877-421990 909585472 (8) ZYXE-VSG-1432 VDSL2 Combo Wan Gateway 751.01 07/14/2015 656-49877-421800 909593574 (500) - flex cllip telecrafter 63.46 07/14/2015 656-49877-421800 2,755.54Check Total: Vendor:2213 CBS TV STATIONS Check Sequence: 12 ACH Enabled: False 063015 WCCO June 2015 1,314.25 07/14/2015 656-49879-430920 AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 2 Invoice No Description Amount Payment Date Acct Number Reference 1,314.25Check Total: Vendor:1106 CENTRAL MCGOWAN INC Check Sequence: 13 ACH Enabled: False 00044609 Monthly Tank Rental 45.00 07/14/2015 226-45122-441500 00872555 Bulk Carbon Dioxide (450 lbs) 116.00 07/14/2015 226-45122-421600 00875276 Bulk Carbon Dioxide (405 lbs) 107.00 07/14/2015 226-45122-421600 268.00Check Total: Vendor:3788 CENTRAL WOOD PRODUCTS CORP Check Sequence: 14 ACH Enabled: False 63420 ZPARKS-HUNTER - 2203 Rec-Step (100) 1,715.00 07/14/2015 229-45202-453010 1,715.00Check Total: Vendor:2654 CENTURYLINK Check Sequence: 15 ACH Enabled: False R97006006015159 6/8-7/7/2015 - monthly access charge 144.23 07/14/2015 656-49879-430910 144.23Check Total: Vendor:2654 CENTURYLINK Check Sequence: 16 ACH Enabled: False L04003703715159 6/8-7/7/2015 - monthly access charge 104.84 07/14/2015 656-49879-430910 104.84Check Total: Vendor:2654 CENTURYLINK Check Sequence: 17 ACH Enabled: False R72010610615159 6/8-7/7/2015 - monthly access charge 600.00 07/14/2015 656-49879-430910 600.00Check Total: Vendor:3750 MARK CHRISTIANSEN Check Sequence: 18 ACH Enabled: False 6/25/2015 Market Token Collection Log 6/18/15 20.00 07/14/2015 226-00000-220100 20.00Check Total: Vendor:4158 COMMERCIAL ASPHALT COMPANY Check Sequence: 19 ACH Enabled: False 150630 (2.03) tons Dura Drive- Hotmix 117.84 07/14/2015 101-43120-422400 117.84Check Total: Vendor:1120 CONCRETE PRODUCTS NEW LONDON Check Sequence: 20 ACH Enabled: False 61429 Round-a-bout Landscaping - (2) 3oz Typar Hvy Duty 4'x300' 190.60 07/14/2015 101-45201-422500 190.60Check Total: AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 3 Invoice No Description Amount Payment Date Acct Number Reference Vendor:2197 CORPORATE CONNECTION Check Sequence: 21 ACH Enabled: False 40094 (2) xL Hi Viz Class 2 Safety T-shirt 34.32 07/14/2015 101-43120-420650 34.32Check Total: Vendor:4166 JENESSA COX Check Sequence: 22 ACH Enabled: False 070215 FNM-001-1042 acct Refund 56.84 07/14/2015 656-00000-115025 56.84Check Total: Vendor:1746 CUSTOM FIRE APPARATUS INC Check Sequence: 23 ACH Enabled: True 16385 Valve, Air, 4-way toggle 37.57 07/14/2015 101-42200-422110 37.57Check Total: Vendor:2935 CUSTOMIZED FIRE RESCUE TRAINING INC Check Sequence: 24 ACH Enabled: False 662 Haz Materials; Confined Space; Tech Rescue-to be Reimb. by MBFTE 1,125.00 07/14/2015 101-42200-433200 1,125.00Check Total: Vendor:1129 DAHLHEIMER BEVERAGE LLC Check Sequence: 25 ACH Enabled: True 110919 Resale - beer at ball fields 267.00 07/14/2015 226-45203-425200 111713 Resale - beer 25.50 07/14/2015 609-49750-425200 111762 Resale - beer 925.20 07/14/2015 609-49750-425200 1140988 Resale - beer 2,730.75 07/14/2015 609-49750-425200 3,948.45Check Total: Vendor:1833 DAN & JERRY'S GREENHOUSEES INCORPORATED Check Sequence: 26 ACH Enabled: False 297506 (3) 10" basket; (6) 6" annuals tray 68.91 07/14/2015 101-45201-440900 297723 (2) quart Perennials 9.98 07/14/2015 101-45201-440900 78.89Check Total: Vendor:1134 DAY DISTRIBUTING COMPANY Check Sequence: 27 ACH Enabled: True 809988 resale - beer 1,535.57 07/14/2015 609-49750-425200 1,535.57Check Total: Vendor:1136 GORDON J DEHMER Check Sequence: 28 ACH Enabled: False 3239 Labor- extinguisher recahsrge & mtc. 308.50 07/14/2015 101-42200-440440 3239 Parts r- extinguisher recahsrge & mtc. 30.25 07/14/2015 101-42200-440440 338.75Check Total: AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 4 Invoice No Description Amount Payment Date Acct Number Reference Vendor:1153 ECM PUBLISHERS INC Check Sequence: 29 ACH Enabled: True 231908 PHN - Zo Ord Ch 3.7 Ad# 406412 110.76 07/14/2015 101-41910-435100 231909 PHN - Amend Zo Ch 3.4, 5.2, 8.4 Ad# 410850 110.76 07/14/2015 101-41910-435100 231910 Ordinance 616 - Ad# 411018 230.75 07/14/2015 101-41310-435100 452.27Check Total: Vendor:1878 ESS BROTHERS & SONS INC Check Sequence: 30 ACH Enabled: False UU3616 309x 2' CI Adj. Ring; EBS Super Glue 148.50 07/14/2015 101-43120-422400 148.50Check Total: Vendor:4051 MICHELE FORSMAN Check Sequence: 31 ACH Enabled: False 6/18/2015 Library Programs - Summer 2015 24.60 07/14/2015 101-00000-220150 24.60Check Total: Vendor:2222 FOX SPORTS NET INC Check Sequence: 32 ACH Enabled: True J18650 FSN North June 2015 4,814.46 07/14/2015 656-49879-430920 4,814.46Check Total: Vendor:2462 FOX TELEVISION STATIONS INC Check Sequence: 33 ACH Enabled: False 063015 KMSP June 2015 1,164.05 07/14/2015 656-49879-430920 063015-2 WFTC June 2015 210.28 07/14/2015 656-49879-430920 1,374.33Check Total: Vendor:3748 JEFFREY D GARDNER Check Sequence: 34 ACH Enabled: True 6/26/2015 Market Token Collection Log 6/18/15 21.00 07/14/2015 226-00000-220100 21.00Check Total: Vendor:4045 DAN GLESER Check Sequence: 35 ACH Enabled: True 387084 Mankato Networks- (4) 10 Gigabit Ethernet Optics 2,452.73 07/14/2015 656-49877-421800 387090 Mankato Networks-Fiber xconn-SMF xcon June 2015 2,150.00 07/14/2015 656-49870-431990 4,602.73Check Total: Vendor:4090 GOLDEN WEST TECHNOLOGIES Check Sequence: 36 ACH Enabled: False 150600493 Helpdesk Minutes 3/15 (331) - ommitted from 3/15 inv in error 413.75 07/14/2015 656-49870-431990 150600493 Helpdesk Minutes 4/15 (805) - ommitted from 3/15 inv in error 1,006.25 07/14/2015 656-49870-431990 150600493 Helpdesk Minutes 5/15 (663) - ommitted from 3/15 inv in error 828.75 07/14/2015 656-49870-431990 150600493 June 2015- Helpdesk (428); Video Support (204) 814.75 07/14/2015 656-49870-431990 AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 5 Invoice No Description Amount Payment Date Acct Number Reference 3,063.50Check Total: Vendor:1413 GOPHER STATE ONE CALL INC Check Sequence: 37 ACH Enabled: True 138426 June 2015 - (244) FTP; (6) voice; (10) cancel/Update-split Water 171.88 07/14/2015 601-49440-432770 138426 June 2015 - (244) FTP; (6) voice; (10) cancel/Update- split FNM 171.87 07/14/2015 656-49877-432770 343.75Check Total: Vendor:4149 SHARON GROSS Check Sequence: 38 ACH Enabled: False 6/18/2015 Library Program Supplies - Summer 12.69 07/14/2015 101-00000-220150 12.69Check Total: Vendor:3859 TAMARA HANSON Check Sequence: 39 ACH Enabled: True 6/25/2015 Market Token Collection Log 6/25/15 66.00 07/14/2015 226-00000-220100 66.00Check Total: Vendor:4160 RODNEY & LAURI HARVEY Check Sequence: 40 ACH Enabled: False 070215 FNM-001-0074 acct Refund 9.32 07/14/2015 656-00000-115025 9.32Check Total: Vendor:1223 HAWKINS INC Check Sequence: 41 ACH Enabled: True 3742497 (8)150# Chlorine; (662) gal Phospahte Liq; (480) gal Hydo Acid 9,277.40 07/14/2015 601-49440-421600 9,277.40Check Total: Vendor:1224 HD SUPPLY WATERWORKS LTD Check Sequence: 42 ACH Enabled: False E077689 Sensus VXU repair 316.65 07/14/2015 601-49440-440440 316.65Check Total: Vendor:3229 JEFF HOGLUND Check Sequence: 43 ACH Enabled: False 0152815 (4) Adopt a Median signs 100.00 07/14/2015 101-43120-422600 0162215 (75) 12"x16"- No Parking or Watering; (75) Metal Step Stakes 375.00 07/14/2015 101-43120-422600 475.00Check Total: Vendor:1242 HOLIDAY CREDIT OFFICE Check Sequence: 44 ACH Enabled: True 06182015 Fire Dept. Fuel slips 5/18-6/09/2015 352.74 07/14/2015 101-42200-421200 352.74Check Total: AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 6 Invoice No Description Amount Payment Date Acct Number Reference Vendor:4168 JEFF HOLTON Check Sequence: 45 ACH Enabled: False 070215 FNM-001-0080 acct Refund 87.13 07/14/2015 656-00000-115025 87.13Check Total: Vendor:2305 HOME BOX OFFICE Check Sequence: 46 ACH Enabled: True 063015 HBO June 2015 280.44 07/14/2015 656-49879-430920 063015 HBO Bulk June 2015 513.05 07/14/2015 656-49879-430920 063015 Max June 2015 67.87 07/14/2015 656-49879-430920 861.36Check Total: Vendor:1244 HORIZON COMMERCIAL POOL SUPPLY Check Sequence: 47 ACH Enabled: False 150527057 Pool chemicals 1,603.88 07/14/2015 226-45122-421600 150601071 Pool chemicals 36.48 07/14/2015 226-45122-421600 CR150624901 Credit on shipping charge -11.64 07/14/2015 226-45122-421600 1,628.72Check Total: Vendor:2214 HUBBARD BROADCASTING INC Check Sequence: 48 ACH Enabled: False 063015 KSTC June 2015 187.75 07/14/2015 656-49879-430920 063015-2 KSTP June 2015 1,502.00 07/14/2015 656-49879-430920 1,689.75Check Total: Vendor:3749 DANIEL PAUL HUNZ Check Sequence: 49 ACH Enabled: True 6/25/2015 Market Token Collection Log 6/18/15 26.00 07/14/2015 226-00000-220100 26.00Check Total: Vendor:4053 JAN IANO Check Sequence: 50 ACH Enabled: False 6/18/2015 Library Programs - Summer 2015 99.35 07/14/2015 101-00000-220150 99.35Check Total: Vendor:2521 ALAN JIMENEZ Check Sequence: 51 ACH Enabled: False 070215 763-295-0968 acct Refund 18.75 07/14/2015 656-00000-115025 18.75Check Total: Vendor:4159 KEVIN JOB Check Sequence: 52 ACH Enabled: False 070215 FNM-001-0274 acct Refund 5.83 07/14/2015 656-00000-115025 5.83Check Total: AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 7 Invoice No Description Amount Payment Date Acct Number Reference Vendor:4167 MARIAN JOHNSON Check Sequence: 53 ACH Enabled: False 070215 763-295-8766 acct Refund 66.72 07/14/2015 656-00000-115025 66.72Check Total: Vendor:1263 JOHNSON BROS WHOLESALE LIQUOR Check Sequence: 54 ACH Enabled: False 5200281 resale - liquor 3,696.31 07/14/2015 609-49750-425100 5200281 freight 41.04 07/14/2015 609-49750-433300 5200282 resale - wine 498.40 07/14/2015 609-49750-425300 5200282 resale - mix 28.49 07/14/2015 609-49750-425400 5200282 freight 23.04 07/14/2015 609-49750-433300 531486 resale - liquor credit -179.14 07/14/2015 609-49750-425100 531690 resale - liquor credit -3.33 07/14/2015 609-49750-425100 531691 resale - wine credit -13.15 07/14/2015 609-49750-425300 532050 resale - beer credit -23.00 07/14/2015 609-49750-425200 4,068.66Check Total: Vendor:2251 KARE GANNETT CO INC Check Sequence: 55 ACH Enabled: False 484-1018 Kare TV June 2015 1,389.35 07/14/2015 656-49879-430920 1,389.35Check Total: Vendor:1270 KENNEDY AND GRAVEN CHARTERED Check Sequence: 56 ACH Enabled: False MN190-00101 General EDA Matters through 5/31/15 277.50 07/14/2015 213-46301-430400 277.50Check Total: Vendor:1274 KNIFE RIVER CORPORATION-NORTH CENTRAL Check Sequence: 57 ACH Enabled: False 32753 ZPARKS-HUNTER - 400 EXT 283.50 07/14/2015 229-45202-453010 283.50Check Total: Vendor:2626 HARRY LANTTO Check Sequence: 58 ACH Enabled: True 6/24/2015 Planning Commission Meeting Recording 6/2/15 60.00 07/14/2015 101-41910-431990 6/24/2015 EDA Meeting Recording 6/10/15 60.00 07/14/2015 213-46301-431990 6/24/2015 City Council Meeting Recording - 6/8/15 & 6/22/2015 135.00 07/14/2015 101-41110-431990 255.00Check Total: Vendor:1291 LEAGUE OF MN CITIES INS TRUST Check Sequence: 59 ACH Enabled: False 6/30/2015 LMCIT Claim #C0037549 date of loss 2/10/15 MR 199.00 07/14/2015 101-43110-436990 6/30/2015 LMCIT Claim #C0038578 date of loss 4/8/15 TG 1,000.00 07/14/2015 101-43110-436990 6/30/2015 LMCIT Claim #C0039279 date of loss 5/13/15 PT 60.42 07/14/2015 217-41990-443990 AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 8 Invoice No Description Amount Payment Date Acct Number Reference 1,259.42Check Total: Vendor:2304 LEGACY MECHANICAL SERVICES LLC Check Sequence: 60 ACH Enabled: True 4746 Material - Replaced Water Heater & Flapper on toilet 255.00 07/14/2015 101-41940-431990 4746 Labor - Replaced Water Heater & Flapper on toilet 285.00 07/14/2015 101-41940-431990 4963 New condenser for fan motor in pool equipment room 295.00 07/14/2015 226-45122-440440 835.00Check Total: Vendor:1292 LEROY JOB TRUCKING INC Check Sequence: 61 ACH Enabled: True 17413 Animal Charge (2) 23.80 07/14/2015 101-42700-431990 23.80Check Total: Vendor:3933 CHARLES LONG Check Sequence: 62 ACH Enabled: False 6/25/2015 Market Token Collection Log 6/18/15 52.00 07/14/2015 226-00000-220100 52.00Check Total: Vendor:4097 DEBRA LUKEN Check Sequence: 63 ACH Enabled: False 6/18/2015 Library program supplies - Summer 2015 82.21 07/14/2015 101-00000-220150 82.21Check Total: Vendor:1300 DOUGLAS WILLIAM LYSENG Check Sequence: 64 ACH Enabled: True 1312 On Site Services (2/1-2/28/15) 2,422.50 07/14/2015 702-00000-431990 1312 "utx" - On Site Services (2/1-2/28/15) 382.50 07/14/2015 702-00000-431990 1313 On Site Services (3/2-3/31/15) 2,982.11 07/14/2015 702-00000-431990 1313 "utx" - On Site Services (3/2-3/31/15) 170.00 07/14/2015 702-00000-431990 1314 On Site Services (4/3-4/30/15) 1,997.50 07/14/2015 702-00000-431990 7,954.61Check Total: Vendor:1303 M AMUNDSON LLP Check Sequence: 65 ACH Enabled: True 198594 resale - cigarettes; juice 1,049.88 07/14/2015 609-49750-425500 198594 resale - can coolers; bottle wraps; soda pop; etc 686.95 07/14/2015 609-49750-425400 1,736.83Check Total: Vendor:1229 MAJIRS ADVERTISING & DESIGN INC Check Sequence: 66 ACH Enabled: True 1200 (250) business cards Tom P 43.00 07/14/2015 101-45201-431990 1203 FNM Handbooks; creative fee - change 565.80 07/14/2015 656-49870-431990 AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 9 Invoice No Description Amount Payment Date Acct Number Reference 608.80Check Total: Vendor:3745 MANSFIELD OIL COMPANY Check Sequence: 67 ACH Enabled: True 480043 780 gal Diesel @ $1.980900 1,889.86 07/14/2015 101-43120-421200 480044 753 gal Unleaded @ $1.829700 1,699.30 07/14/2015 101-43120-421200 523205 754 gal Diesel @ $1.902700 1,767.91 07/14/2015 101-43120-421200 523208 603 gal Unleaded @ $1.867800 1,383.76 07/14/2015 101-43120-421200 562697 650 gal Unleaded @ $2.056400 1,614.22 07/14/2015 101-43120-421200 562724 650 gal Diesel @ $1.911600 1,529.85 07/14/2015 101-43120-421200 592508 654 gal Diesel @ $1.925900 1,548.61 07/14/2015 101-43120-421200 592517 422 gal Unleaded @ $1.968100 1,010.73 07/14/2015 101-43120-421200 12,444.24Check Total: Vendor:1308 MARCO INC Check Sequence: 68 ACH Enabled: True 280811886 6/10-7/10/15 Contract 4,923.39 07/14/2015 702-00000-441500 4,923.39Check Total: Vendor:1309 MARTIE'S FARM SERVICE INC Check Sequence: 69 ACH Enabled: False 488440 (15) annual flats; (10) fountain grass pd byl donation -Cargill 494.25 07/14/2015 101-43120-422500 616273 (4) pots; (2) 20# potting soil 26.74 07/14/2015 101-45201-440900 520.99Check Total: Vendor:4164 JASON MCCARTY Check Sequence: 70 ACH Enabled: False 070215 763-295-9422 acct Refund 35.42 07/14/2015 656-00000-115025 35.42Check Total: Vendor:2215 METRO GOLDWYN MAYER INC Check Sequence: 71 ACH Enabled: True 063015 MGM HD June 2015 98.22 07/14/2015 656-49879-430920 98.22Check Total: Vendor:1330 CITY OF MINNEAPOLIS Check Sequence: 72 ACH Enabled: True 400413006125 (95) Transactions - May 2015; (1) March 2015 86.40 07/14/2015 101-42100-431990 86.40Check Total: Vendor:2179 MINNESOTA 9-1-1 PROGRAM Check Sequence: 73 ACH Enabled: True 06/2015 June 2015 911 Wright Co 781.42 07/14/2015 656-00000-208170 AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 10 Invoice No Description Amount Payment Date Acct Number Reference 781.42Check Total: Vendor:1341 MMKR Check Sequence: 74 ACH Enabled: True 38036 Progress Billing - services through 5/31/15 4,500.00 07/14/2015 101-41540-430100 4,500.00Check Total: Vendor:1343 MN DEPT OF COMMERCE Check Sequence: 75 ACH Enabled: False 1000032585 #6726 - Indirect Assessment 1st Qtr FY 2016 88.88 07/14/2015 656-49870-443700 88.88Check Total: Vendor:1845 MN DEPT OF LABOR & INDUSTRY Check Sequence: 76 ACH Enabled: False 7/2/2015 Confirm #22565171109 Q 2 2015 2,816.92 07/14/2015 101-00000-208110 7/2/2015 Confirm #22565171109 Q 2 2015 -134.54 07/14/2015 101-42400-343000 2,682.38Check Total: Vendor:1359 MN RURAL WATER ASSOCIATION Check Sequence: 77 ACH Enabled: False Membership 2015 August 2015-16 Opton B Associate Membshp; (2) extra mailings 270.00 07/14/2015 601-49440-443300 270.00Check Total: Vendor:1364 MOBILE HEALTH SERVICES LLC Check Sequence: 78 ACH Enabled: True 25557 (2) HAZMAT Physical; (2) Fit Tests' (2) office visits-DC & TI 355.00 07/14/2015 101-42200-431990 355.00Check Total: Vendor:1743 CITY OF MONTICELLO Check Sequence: 79 ACH Enabled: False 7/7/2015 Notary Validation - Pat Kovich 2/6/15 20.00 07/14/2015 101-41520-443990 7/7/2015 DMV Change Drawer True Up 4/10/15 49.45 07/14/2015 217-41990-443990 7/7/2015 Walk N Roll Dog Park Booth Supplies - B Green 6/12/15 16.77 07/14/2015 101-45201-443990 7/7/2015 Batteries for Garage Door Opener - W Klein 6/26/15 11.41 07/14/2015 101-42400-421990 7/7/2015 Clerk Annual Membership - Kerry Burri 7/1/15 35.00 07/14/2015 101-41310-443300 132.63Check Total: Vendor:2512 MONTICELLO PLBG HTG AC LLC Check Sequence: 80 ACH Enabled: False 15289 (300) lbs. Salt & Delivery - Fire Dept. 51.00 07/14/2015 101-42200-422990 51.00Check Total: Vendor:1375 MONTICELLO PRINTING INC Check Sequence: 81 ACH Enabled: True 07012015 (30) Training Report Forms- Fire Dept. 54.85 07/14/2015 101-42200-420300 AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 11 Invoice No Description Amount Payment Date Acct Number Reference 54.85Check Total: Vendor:1821 MOOSE SHERRITT ICE ARENA Check Sequence: 82 ACH Enabled: False 6/17/2015 Hockey League 2015 - 50% of profits 4,110.09 07/14/2015 226-45127-430130 4,110.09Check Total: Vendor:2112 MPELRA Check Sequence: 83 ACH Enabled: False 6/26/2015 August 5-7 2015 Summer Conference - Tracy Ergen 250.00 07/14/2015 101-41800-433200 250.00Check Total: Vendor:2218 MUSIC CHOICE Check Sequence: 84 ACH Enabled: True 063015 Music Choice June 2015 349.17 07/14/2015 656-49879-430920 349.17Check Total: Vendor:2072 NATIONAL TELCO TELEVISION CONSORTIUM Check Sequence: 85 ACH Enabled: True 3355 NTTC - June 2015 billing 32,693.79 07/14/2015 656-49879-430920 32,693.79Check Total: Vendor:1887 NENA Check Sequence: 86 ACH Enabled: False 5673 Company Id Subscription- 7/1/15 - 6/30/2016 250.00 07/14/2015 656-49870-443700 250.00Check Total: Vendor:1913 NEW FRANCE WINE Check Sequence: 87 ACH Enabled: False 100946 freight 15.00 07/14/2015 609-49750-433300 100946 resale - wine 984.00 07/14/2015 609-49750-425300 999.00Check Total: Vendor:2216 NHL NETWORK Check Sequence: 88 ACH Enabled: False 063015 NHL SD June 2015 223.52 07/14/2015 656-49879-430920 223.52Check Total: Vendor:2287 NORTH AMERICAN NUMBERING PLAN Check Sequence: 89 ACH Enabled: False 076811 FCC Filer ED 828118 Number Admin in N AM- FNM share for 2015 25.00 07/14/2015 656-49870-431990 25.00Check Total: Vendor:3738 DANIEL D OLSEN Check Sequence: 90 ACH Enabled: True AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 12 Invoice No Description Amount Payment Date Acct Number Reference M15-06 (31) June 2015 Off Site Hours 2,015.00 07/14/2015 656-49870-430700 2,015.00Check Total: Vendor:1412 OMANN BROTHERS INC Check Sequence: 91 ACH Enabled: False 11578 (10.84) SPWEA240B 543.30 07/14/2015 101-43120-422400 11587 (8.32) SPWEA240B 417.00 07/14/2015 101-43120-422400 11594 (5.89) SPWEA240B 295.21 07/14/2015 101-43120-422400 11605 (5.02) SPWEA240B 251.60 07/14/2015 101-43120-422400 11613 (3.02) AC Fines mix 194.61 07/14/2015 101-43120-422400 1,701.72Check Total: Vendor:1273 PAUSTIS & SONS WINE CO Check Sequence: 92 ACH Enabled: False 8505548 resale - wine 1,141.00 07/14/2015 609-49750-425300 8505548 freight 13.75 07/14/2015 609-49750-433300 1,154.75Check Total: Vendor:3340 PERFECTION PACKAGING INC Check Sequence: 93 ACH Enabled: False 111893 Sunflower seeds for ball field concessions (48 pkgs) 45.60 07/14/2015 226-45203-425410 45.60Check Total: Vendor:1427 PHILLIPS WINE & SPIRITS CO Check Sequence: 94 ACH Enabled: False 215589 resale - liquor credit -285.19 07/14/2015 609-49750-425100 215589 resale - freight credit -1.44 07/14/2015 609-49750-433300 2813254 resale - wine 1,846.94 07/14/2015 609-49750-425300 2813254 freight 57.60 07/14/2015 609-49750-433300 2813255 resale - liquor 2,242.94 07/14/2015 609-49750-425100 2813255 freight 24.48 07/14/2015 609-49750-433300 3,885.33Check Total: Vendor:1431 PIPIELINE SUPPLY INC Check Sequence: 95 ACH Enabled: True S3352486.001 repl valve @800,000 Twr Site; boosted valve in manhole 8.16 07/14/2015 601-49440-422700 8.16Check Total: Vendor:4060 POP MEDIA NETWORKS, LLC POP MEDIA GROUP, LLC Check Sequence: 96 ACH Enabled: True 155611 Pop June 2015 466.35 07/14/2015 656-49879-430920 466.35Check Total: Vendor:1443 QUALITY FLOW SYSTEMS INC Check Sequence: 97 ACH Enabled: False AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 13 Invoice No Description Amount Payment Date Acct Number Reference 30652 Chestnut lft st-E pump- top bearing; add guide claw 3,811.00 07/14/2015 602-49490-440440 3,811.00Check Total: Vendor:1450 RAILROAD MANAGEMENT CO III LLC Check Sequence: 98 ACH Enabled: False 321772 License #306033 10/16/15-10/15/16 Rent Sewer Pipeline Crossing 160.78 07/14/2015 265-49200-431990 321779 License #306059 License Fees 160.78 07/14/2015 265-49200-431990 321.56Check Total: Vendor:2584 RECYCLE TECHNOLOGIES INC Check Sequence: 99 ACH Enabled: False 152447 recycle bults (93) 4'; (62) 8'; bulb bin; Env. Fee 125.00 07/14/2015 609-49754-431990 125.00Check Total: Vendor:1455 RED'S MARATHON Check Sequence: 100 ACH Enabled: False 06152015 Parks - Diesel off road 69.69 07/14/2015 101-45201-421200 06252015 Battery; recharge 250.00 07/14/2015 101-43120-422100 319.69Check Total: Vendor:4157 REDHEAD CREAMERY LLC Check Sequence: 101 ACH Enabled: False 6/25/2015 Market Token Collection Log 6-25-15 41.00 07/14/2015 226-00000-220100 41.00Check Total: Vendor:4022 REINHART FOODSERVICE LLC Check Sequence: 102 ACH Enabled: False 893134 Freight 7.99 07/14/2015 226-45122-433300 893134 Party food - pizzas 86.85 07/14/2015 226-45127-421460 893134 Resale - condiments, chips, cheese sauce, hot dogs, muffins, etc 389.79 07/14/2015 226-45127-425410 899137 Credit to Inv# 883650 - concession frozen yogurt -16.28 07/14/2015 226-45127-425410 902185 Cheese pizzas for parties 79.87 07/14/2015 226-45127-421460 902185 Resale - concessions - tortilla chips, cheese cups, pretzels,etc 403.97 07/14/2015 226-45127-425410 952.19Check Total: Vendor:4170 RESURRECTION LUTHERAN CHURCH Check Sequence: 103 ACH Enabled: False 070215 763-271-4343 acct Refund - Fibernet 304.93 07/14/2015 656-00000-115025 304.93Check Total: Vendor:4162 AARON & KIKI ROGERS Check Sequence: 104 ACH Enabled: False 070215 763-314-0241 acct Refund 17.08 07/14/2015 656-00000-115025 AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 14 Invoice No Description Amount Payment Date Acct Number Reference 17.08Check Total: Vendor:1470 RUSSELL SECURITY RESOURCE INC Check Sequence: 105 ACH Enabled: True A25551 Repin Worn Cyclinder at CH 1 (employee entrance) 98.75 07/14/2015 101-41940-440100 98.75Check Total: Vendor:1474 PATRICIA A SALZWEDEL Check Sequence: 106 ACH Enabled: True 6/22/2015 Semi Monthly Contract Payment 1,593.75 07/14/2015 101-42700-431200 7/7/2015 Mileage Reimbursement June 2015 (320 miles) 184.00 07/14/2015 101-42700-433100 1,777.75Check Total: Vendor:2568 PATRICK A SAWATZKE Check Sequence: 107 ACH Enabled: False 6/19/2015 Movie in the Park sign - 2 week rental 86.25 07/14/2015 226-45127-434990 6/19/2015 Walk N Roll sign - 1 1/2 week rental 80.00 07/14/2015 101-00000-115030 166.25Check Total: Vendor:1476 SCHLUENDER CONSTRUCTION INC Check Sequence: 108 ACH Enabled: False 20897 ZPARKS-HUNTER- (4) LOADS FILL - 6/15/2015 520.00 07/14/2015 229-45202-453010 520.00Check Total: Vendor:3751 CHRIS SCHYMA Check Sequence: 109 ACH Enabled: False 6/25/2015 Market Token Collection Log 6/25/15 84.00 07/14/2015 226-00000-220100 84.00Check Total: Vendor:3860 PATRICIA SCOTT Check Sequence: 110 ACH Enabled: False 6/25/2015 Market Token Collection Log 6-25-15 21.00 07/14/2015 226-00000-220100 21.00Check Total: Vendor:2443 SECURITAS SECURITY SERVICES USA INC Check Sequence: 111 ACH Enabled: False W4835159 6/6/15 - Brant R2235 140.00 07/14/2015 226-45122-431992 140.00Check Total: Vendor:2497 SHERBURNE WRIGHT CABLE COMMISSION Check Sequence: 112 ACH Enabled: True 7/1/2015 Cable PEG Fees - Qtr 2 2015 1,901.45 07/14/2015 656-49870-432500 1,901.45Check Total: AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 15 Invoice No Description Amount Payment Date Acct Number Reference Vendor:4165 TODD SHOEMAKER Check Sequence: 113 ACH Enabled: False 070215 FNM-001-1119 acct Refund 52.55 07/14/2015 656-00000-115025 52.55Check Total: Vendor:2301 SHOWTIME NETWORKS INC Check Sequence: 114 ACH Enabled: False 063015 Showtime June 2015 145.20 07/14/2015 656-49879-430920 145.20Check Total: Vendor:4163 NATE SIMONDET Check Sequence: 115 ACH Enabled: False 070215 FNM-001-0981 acct Refund 19.40 07/14/2015 656-00000-115025 19.40Check Total: Vendor:1490 CYNTHIA R SIMPSON Check Sequence: 116 ACH Enabled: False 894132 June 2015 Cleaning Service 100.00 07/14/2015 101-42200-431990 100.00Check Total: Vendor:2212 SINCLAIR TELEVISION GROUP INC Check Sequence: 117 ACH Enabled: False 063014 WUCW June 2015 413.05 07/14/2015 656-49879-430920 413.05Check Total: Vendor:3309 SOUTHERN WINE & SPIRITS OF MINNESOTA Check Sequence: 118 ACH Enabled: False 1302054 resale - wine 1,128.00 07/14/2015 609-49750-425300 1302054 freight 22.95 07/14/2015 609-49750-433300 1,150.95Check Total: Vendor:2603 SPECIALTY TURF & AG, INC Check Sequence: 119 ACH Enabled: False I43447 (4) Pronto seanson-long Contl- 1 gal 193.80 07/14/2015 101-45201-421600 193.80Check Total: Vendor:1497 SPECTRUM SUPPLY COMPANY Check Sequence: 120 ACH Enabled: True 253179 (30) Nitrile Glove; (3) multifold 4000ct; (2) 20oz cups 387.61 07/14/2015 101-45201-421650 253404 (2) cases tissues 129.26 07/14/2015 101-43120-422400 253587 1 case multifold paper towels- Fire 32.60 07/14/2015 101-42200-421990 549.47Check Total: Vendor:2564 SPORTS PRO LLC Check Sequence: 121 ACH Enabled: True 370 Labor - Treadmill WO#4737 1 hr 120.00 07/14/2015 226-45122-440800 AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 16 Invoice No Description Amount Payment Date Acct Number Reference 370 Parts for Treadmill repair; belts, screws, deck WO#4737 519.60 07/14/2015 226-45122-440800 639.60Check Total: Vendor:3829 STEVE'O'SEPTIC Check Sequence: 122 ACH Enabled: True June 2015 (12) porta toilet rentals- 5/24-6/20/2015 597.00 07/14/2015 101-45201-431990 597.00Check Total: Vendor:1522 THORPE DISTRIBUTING COMPANY Check Sequence: 123 ACH Enabled: True 904068 resale - beer N/A 211.45 07/14/2015 609-49750-425400 904069 resale - beer 176.40 07/14/2015 609-49750-425200 904069 resale - wine 100.40 07/14/2015 609-49750-425300 904070 resale - beer 24,469.77 07/14/2015 609-49750-425200 24,958.02Check Total: Vendor:2252 TOWER DISTRIBUTION COMPANY Check Sequence: 124 ACH Enabled: False 445008 WGN America June 2015 194.29 07/14/2015 656-49879-430920 194.29Check Total: Vendor:3594 TRIMARK Check Sequence: 125 ACH Enabled: False 2438698 (10) Jigger 9.80 07/02/2015 609-49750-425400 2438698 Asst. Bags; towel rolls; multifold towl; coffee 467.60 07/02/2015 609-49754-421990 477.40Check Total: Vendor:2534 VAULTAS ALEXANDRIA LLC Check Sequence: 126 ACH Enabled: True 2321 August 2015 Gigabite transport/cross 4,400.00 07/14/2015 656-49879-430930 4,400.00Check Total: Vendor:4161 DEBRA & ROBERT VIEGUT Check Sequence: 127 ACH Enabled: False 070215 FNM-001-0982 acct Refund 11.07 07/14/2015 656-00000-115025 11.07Check Total: Vendor:1684 VINOCOPIA Check Sequence: 128 ACH Enabled: True 0127874 resale - liquor 196.00 07/14/2015 609-49750-425100 0127874 freight 10.50 07/14/2015 609-49750-433300 206.50Check Total: Vendor:4152 VON HANSON'S Check Sequence: 129 ACH Enabled: False AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 17 Invoice No Description Amount Payment Date Acct Number Reference 6/23/2015 ZVONHN - Planning Deposit Refund 320.64 07/14/2015 101-00000-220110 320.64Check Total: Vendor:1561 WATER LABORATORIES INC Check Sequence: 130 ACH Enabled: False 4921 May 2015 Water testing 240.00 07/14/2015 601-49440-422740 4981 June 2015 Water testing 218.00 07/14/2015 601-49440-422740 458.00Check Total: Vendor:4008 SANDRA WELTON-WOOD Check Sequence: 131 ACH Enabled: False 6/19/2015 Library Program supplies - summer 10.63 07/14/2015 101-00000-220150 10.63Check Total: Vendor:1567 WES OLSON ELECTRIC LLC Check Sequence: 132 ACH Enabled: False 7241 labor -Emergency call- fluses blown 68.00 07/14/2015 601-49440-431990 7241 material -Emergency call- fluses blown 5.00 07/14/2015 601-49440-431990 7242 labor -well 5- repair injection pump 102.00 07/14/2015 601-49440-431990 175.00Check Total: Vendor:4151 WHE, LLC Check Sequence: 133 ACH Enabled: False 6/23/2015 ZHOGLD - Planning Deposit Refund 2,390.50 07/14/2015 101-00000-220110 2,390.50Check Total: Vendor:4169 WALT & KIMBERLY WILLIS Check Sequence: 134 ACH Enabled: False 070215 763-295-6167 acct Refund 87.99 07/14/2015 656-00000-115025 87.99Check Total: Vendor:4052 MOLLY WILLS Check Sequence: 135 ACH Enabled: False 6/18/2015 Library Programs - Summer 2015 20.23 07/14/2015 101-00000-220150 20.23Check Total: Vendor:2728 WINDSTREAM COMMUNICATIONS Check Sequence: 136 ACH Enabled: False 15160-03373 Credit deposit for CABS charges 10.00 07/14/2015 656-49879-430910 10.00Check Total: Vendor:1572 THE WINE COMPANY Check Sequence: 137 ACH Enabled: True 397409 resale - wine 480.00 07/14/2015 609-49750-425300 397409 freight 8.40 07/14/2015 609-49750-433300 AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 18 Invoice No Description Amount Payment Date Acct Number Reference 488.40Check Total: Vendor:1209 WIRTZ BEVERAGE MINNESOTA WINE & SPIRITS Check Sequence: 138 ACH Enabled: False 1080343451 resale - wine 564.00 07/14/2015 609-49750-425300 1080343451 resale - liquor 2,752.57 07/14/2015 609-49750-425100 1080343451 freight 57.20 07/14/2015 609-49750-433300 1080343452 resale - wine 56.00 07/14/2015 609-49750-425300 3,429.77Check Total: Total for Check Run: Total of Number of Checks: 201,463.21 138 AP-Computer Check Proof List by Vendor (07/08/2015 - 1:27 PM)Page 19 The preceding list of bills payables was reviewed and approved for payment. Date: 7/13/15 Approved by:_______________________________________ Mayor Brian Stumpf User: Printed:07/01/2015 - 8:48AM Debbie.Davidson Computer Check Proof List by Vendor Accounts Payable Batch:00215.06.2015 - 215.06.2015 Xcel Invoice No Description Amount Payment Date Acct Number Reference Vendor:1585 XCEL ENERGY Check Sequence: 1 ACH Enabled: True 06/30/2015 51-4400193-4 17.09 06/30/2015 101-43160-438100 06/30/2015 51-6505905-0 4,806.15 06/30/2015 601-49440-438100 06/30/2015 51-6505906-1 1,087.85 06/30/2015 602-49490-438100 06/30/2015 51-6505907-2 55.91 06/30/2015 101-43140-438100 06/30/2015 51-6505907-2 45.16 06/30/2015 101-43140-438100 06/30/2015 51-6505908-3 16.50 06/30/2015 101-42500-438100 06/30/2015 51-6505909-4 149.95 06/30/2015 217-41990-438100 06/30/2015 51-6505910-7 1,586.71 06/30/2015 609-49754-438100 06/30/2015 51-6505912-9 63.17 06/30/2015 101-42700-438100 06/30/2015 51-6505913-0 395.80 06/30/2015 101-42200-438100 06/30/2015 51-6505914-1 999.63 06/30/2015 101-43127-438100 06/30/2015 51-6505915-2 718.25 06/30/2015 101-45201-438100 06/30/2015 51-0371645-4 18.58 06/30/2015 101-45201-438100 06/30/2015 51-6505916-3 12,007.99 06/30/2015 101-43160-438100 06/30/2015 51-7780310-4 38.01 06/30/2015 101-41940-438100 06/30/2015 utx- 51-9069641-8 1,360.13 06/30/2015 656-49877-438100 06/30/2015 51-9391437-3 168.27 06/30/2015 101-41941-438100 06/30/2015 ZCULPS - 51-0623082-8 17.09 06/30/2015 213-46522-438100 06/30/2015 51-6505915-2 - 33% Water - skating rink 143.34 06/30/2015 601-49440-438100 06/30/2015 51-6505915-2 - MCC- ballfields NSP- consc & Security 36.64 06/30/2015 226-45203-438100 06/30/2015 51-6505915-2 - Parks ballfields NSP- Softball Asso. Field 61.08 06/30/2015 101-45203-438100 06/30/2015 51-0395766-0 1,144.38 06/30/2015 601-49440-438100 06/30/2015 51-4271112-2 832.20 06/30/2015 101-45501-438100 06/30/2015 51-6505911-8 - CH 2,002.13 06/30/2015 101-41940-438100 06/30/2015 51-6505911-8 - MCC 9,068.48 06/30/2015 226-45122-438100 06/30/2015 51-6505911-8 - Senior Center 471.09 06/30/2015 101-45175-438100 06/30/2015 51-6505911-8 - National Guard 235.55 06/30/2015 101-42800-438100 37,547.13Check Total: AP-Computer Check Proof List by Vendor (07/01/2015 - 8:48 AM)Page 1 Invoice No Description Amount Payment Date Acct Number Reference Total for Check Run: Total of Number of Checks: 37,547.13 1 AP-Computer Check Proof List by Vendor (07/01/2015 - 8:48 AM)Page 2 The preceding list of bills payable was reviewed and approved for payment. Date: 7/13/2015 Approved by ____________________________________ Mayor Brian Stumpf CityCouncilAgenda:07/13/15 1 2B.ConsiderationofapprovingnewhiresanddeparturesforCitydepartments (TE) A.REFERENCEANDBACKGROUND: TheCouncilisaskedtoratifythehiringanddeparturesofemployeesthathaveoccurred recentlyinthedepartmentslisted.ItisrecommendedthattheCouncilofficiallyratifythe hiring/departureofalllistedemployeesincludingpart-timeandseasonalworkers. A1.BudgetImpact:(positionsaregenerallyincludedinbudget) A2.StaffWorkLoadImpact:Ifnewpositions,theremaybesometraining involved.Ifterminatedpositions,existingstaffwouldpickupthosehours,as needed,untilreplaced. B.ALTERNATIVEACTIONS: 1.Motiontoratifythehire/departuresoftheemployeesasidentifiedontheattached list. 2.Motiontodenytherecommendedhiresanddepartures. C.RECOMMENDATION: BystatutetheCityCouncilhastheauthoritytoapproveallhires/departures.Citystaff recommendsAlternative#1,fortheCounciltoapprovethehiresand/ordeparturesas listed. D.SUPPORTINGDATA: Listofnew/terminatedemployees Name Title Department Hire Date Class Samuel Secord Seasonal Worker- Water Water Dept.6/26/2015 Seasonal Levi Zalomsky Climbing Wall Attendant MCC 6/29/2015 PT Ty Hengemuehle Custodian MCC 7/8/2015 PT John Rued Chief Building Official- Appointed Building 7/13/2015 FT Jennifer Burrows City Clerk-Appointed Admin 8/3/2015 FT Name Reason Department Last Day Class Thomas Mitchell Voluntary MCC 6/2/15 PT Samantha Murray Voluntary MCC 6/4/15 PT Grant Sala Voluntary Building 6/30/15 PT Cassandra Stuart Voluntary Liquor Store 7/4/15 PT NEW EMPLOYEES TERMINATING EMPLOYEES New Hire and Terms City Council 2015.xlsx: 7/6/2015 CityCouncilAgenda:07/13/15 1 2C.Considerationofapprovingthesaleordisposalofsurpluscityproperty (WO) A.REFERENCEANDBACKGROUND: TheCouncilisaskedtodeclarecertainitemsassurpluspropertyandauthorizethesaleor disposalofthoseitems. A1.BudgetImpact:Variesbythevalueoftheproperty. A2.StaffWorkLoadImpact:Dependsonthevalueoftheproperty.Someitems willbeshoppedassalvage;otheritemsmaygotoauctionorbesoldviaformal bidsorinformalbids.Statecontractinglawswillgoverninabsenceofcitypolicy. B.ALTERNATIVEACTIONS: 1.Motiontoapprovethesaleordisposalofsurpluspropertyasidentifiedonthe attachedlist. 2.Motiontodenythesaleordisposalofsurpluspropertyasrecommended. C.RECOMMENDATION: CitystaffrecommendsAlternative#1. D.SUPPORTINGDATA: A.SurplusPropertyList B.LMCMemo–DisposalofCityProperty C.MNStatutes471.345–UniformMunicipalContractingLaw SurplusPropertyList 7/07/2015 EstimatedValues: 1.$100,000.00+ A.1998Ag-ChemTerra-GatorSludgeApplicator 2.$10,000.00-$50,000.00 A.1997PolarStainlessSteel6000gal.tankertrailer B.1982InternationalS2500Tri-axlewitha4000gal.tank C.1982InternationalSludgeApplicatorwitha2000gal.tanks&JohnDeererear differential 3.$1.00-$10,000.00 A.JohnDeere230DiscPlow B.Miscellaneousvinylfence C.Miscellaneousstreetsigns D.Miscellaneousofficepanels CityCouncilAgenda:07/13/15 1 2D.ConsiderationofapprovinguseofcommuterPark&Ridelotforoverflow parkingforafundraisingeventonAugust1st atRiverCityExtreme. Applicant:MAMLHockey (AS) A.REFERENCEANDBACKGROUND: TheCityCouncilisaskedtoapprovetheuseoftheCityParkandRidefacilityat JeffersonCommonsforoverflowparkingassociatedwiththeapprovedSpecialEvent PermitforMAMLHockeyAssociation’sMoosefestonAugust1st,2015. TheCouncilapprovedthespecialeventpermitonJune22nd,butdidnotformally authorizetheuseoftheCitycommuterlot.AlthoughtheJune22nd staffreportforthe requestdidnotethatuseofthecommuterlotcouldbeapprovedwiththespecialevent permit,MAMLrepresentativesdidnotrequestCityapprovalatthattime.TheMAML Associationisnowrequestingusageforoverflowparking. TheSpecialEventpermitwasapprovedforSaturdayevening,August1st atRiverCity Extreme,withoutdooractivitiesbeginningat3:00PM.Theoutdooreventsareproposed totakeplaceintheRiverCityExtremeparkinglot.Themainbandwillplayfrom8:00– 12:00PM.Aspreviouslynoted,theapplicantnarrativestatesthatMAMLwillprint750 eventtickets,butverballytheapplicanthasindicatedthatasthisisthefirstyearforthe event,theyhopetodrawanattendanceof300-400persons. Basedontheprovidedsiteplan,itappearsthat160-165stallswillbeavailableintheeast parkingarea.Giventhenumberofticketsandplannedattendanceat300+persons,the commuterlotwillbeneededforoverflowparking.Theeventorganizersshouldalso workwiththeStreetSuperintendentforsignageoftheoverflowparkingareafortheday oftheevent.SchoolBoulevardiscurrentlysignedfornoparkinginthisarea,andas such,noon-streetparkingispermitted. ThepermitisalsosubjecttotherecommendationsoftheCityAttorneyregardingthe certificateofliabilitycoveragerequiredforuseofthecommuterlot. A1.BudgetImpact:None. A2.StaffWorkloadImpact:Minimalstafftimewasnecessarytoreviewtherequest andpreparethisreport.Minimalstafftimeisanticipatedforcoordinationonpark andridesignage. B.ALTERNATIVEACTIONS: 1.MotiontoapprovetheuseoftheCityParkandRidefacilityasassociatedwiththe previously-approvedMoosefestSpecialEventPermitforoutdoorentertainmentat RiverCityExtremeforAugust1st,2015,subjecttocoordinationwiththeStreets Superintendentandappropriatecertificateofliabilitycoveragefortheparkand ridelot. CityCouncilAgenda:07/13/15 2 2.MotiontodenytheuseoftheCityParkandRidefacilityasassociatedwiththe approvedMoosefestSpecialEventPermitforoutdoorentertainmentatRiverCity ExtremeforAugust1st,2015 C.STAFFRECOMMENDATION: Staffrecommendsapprovalsubjecttoconditionsnoted. D.SUPPORTINGDATA: A.PermitApplication&SiteMap(approvedJune22nd,2015) B.AreaMapofJeffersonCommons Are a Map - Je fferson Comm os Sou rce: E sri, Digita lG lo be , Ge oE ye,Earth star G eo gr ap hics, CNES /Airbu s DS,US DA , US GS, A EX, Ge tmap ping ,Aerog rid , IGN, IGP, swisst opo, and theGIS Use r Co mmu nity City Bou nd ar y Ju ly 6, 20 15 Map P owered b y Data Link from W SB & Associa tes 1 inch = 376 fe et CityCouncilAgenda:07/13/15 1 2E.ConsiderationofapprovingaSpecialEventPermitallowinguseofcommuterPark &RidelotandrelatedassistanceinconjunctionwithRotary“TasteoftheTown” eventonSeptember10,2015.Applicant:MonticelloRotaryClub (AS/PW) A.REFERENCEANDBACKGROUND: TheCityCouncilisaskedtoconsiderapprovalofaspecialeventpermitfortheTasteof theTownevent,afoodandbeveragefundraisingeventorganizedbytheMonticello RotaryClub.Therequesthasthreeassociatedconsiderations: a)ApprovalforuseofCityparkandridelot b)ApprovalofCitytrafficcontrolequipmentandstaffassistance c)Approvaloftemporaryliquorlicense–SeeItem2G ThiscommunityeventisproposedtooccurThursday,September10,2015andwillbe promotedandheldincooperationwith40localfoodandbeveragevendors. Similartopreviousyearsandasillustratedinthesiteplan,theeventisproposedtobe locatedintheJeffersonCommonscommuterlot.Eventattendeeswillbeaccessingthe areabyvehiclefromDeeganAvenue.Aspartoftheparkandridelotuse,thegroupwill needCityassistanceforprovidingbarricades,cones,andpicnictables. Althoughnotspecifiedinthenarrative,inthepast,theRotaryClubisrequestingthatthe parkandridelotbepartiallyclosedforset-upbyvolunteersonWednesdayafternoon withthelotfullyclosedtheentiredayoftheeventforcompletionofset-up.TheRotary willbeaskedtoconfirmrequestedhoursofclosureofthelotasaconditionofapproval. ThePublicWorksDepartmentsigntrailerwillbeplacedatthecommuterlot7daysprior totheeventtonotifyusersoftheclosures.Fullaccesstoalimitednumberofparkand ridestallswillstillbemadeavailableWednesday. Theeventwilloccurfrom5:30PMto8:30PMonThursday,September10th.Asitemap illustratingtheproposedconfigurationoftheeventtentisincludedinsupportingdata. TheeventorganizersalsoproposetoutilizeaportionoftheMullerTheatreparkinglot areaontheeastside.ThepropertyownerhasbeencontactedandagreedtoallowRotary tousethisareaforeventparking.Theletterofagreementwillberequestedforreference. Duringtheeventvolunteerswillbedirectingtrafficforparkingintothesigned designatedareas. ThePublicWorksDepartmenthasindicatedthat,ifapprovedbyCouncil,theyareableto provideconesandbarricadesforparkingareasonWednesdayduringbusinesshours. Directionalassistanceforvehiclesislimitedtoparkingareasandnotrequiredforanycity streets.Thegrouphasindicatedintheirnarrativethattheywillprovideon-sitewaste containersandwillprovidefullsiteclean-up. CityCouncilAgenda:07/13/15 2 TheMonticelloRotaryClubwillberequiredtoprovideproofofinsurancetocoverthe eventanditsactivitieswiththeCitynamedassecondinsured. Aspartoftherequest,RotaryisalsoseekingCouncil’sapprovaltomoveforwardan applicationforpermitfromtheStateofMinnesotaforatemporaryonedayliquorlicense. Thatrequestiscoveredinaseparateitem. Asinpastyears,Rotaryisproposingtosetuplargerentaltentsontheparkandridelot fortheevent.Tosecurethetents,metalsstakeswillbefastenedintotheparkandride pavementsurface.Rotaryisagainaskedtopatchandrepairatthestakelocationstothe satisfactionofthePublicWorksDepartment.TheRotarygroupwillalsocontinueto workwithPublicWorksstaffregardingpowersupplyfortheeventandwillbeaskedto complywiththerecommendationsofstaffinthatregard.Asinpastyears,theRotary willneedtocoordinatetentheightandplacementwiththeengineeringdepartment relativetotheoverheadpowerlinesandexistingeasements. TheTasteoftheTownwasdevelopedbyRotaryasafundraiserbenefittinglocal communityserviceprojects.Allpatronstakingpartinthiseventmustbeage21orolder andidentificationwillbecheckedattheentrancedoor. TheWrightCountySheriff’sOfficehasreviewedthepermitapplicationandhas indicatednoissueswiththeproposedpermit;theSheriff’sOfficenotedthattheevent organizershaveinthepasthiredanoff-dutydeputytoassistwithsecurity. Thegroupanticipatessellingupto1200ticketsfortheMonticelloTasteevent. A1.BudgetImpact:None. A2.StaffWorkloadImpact:RotaryisrequestingCityassistancefordeliveryand pick-upofbarricades,cones,andpicnictables.Thesewillbedeliveredtothesite andpickedupduringregularstaffhours.TheStreetSuperintendentwillalso prepareasiteplanforbarricadeandconeplacementtoaidvolunteerset-up. B.ALTERNATIVEACTIONS: 1.MotiontoapprovetheSpecialEventPermitallowingtemporaryuseofthe commuterParkandRidelotforset-upbeginningonWednesday,September9th through10p.m.onThursday,September10,2015,includingtheuseofpublic parkingfacilitiesandCityservicesasdescribedinthestaffreportofJune13th, 2015contingenton: a.ContinuedsiteplancoordinationwiththeStreetSuperintendent,including parkandridelotclosureandsignage. b.CoordinationoftentplacementwithEngineering/Streetsdepartment relativetopowerlines. c.VerificationofparkingagreementwithMullerTheatres. CityCouncilAgenda:07/13/15 3 d.NotificationandeventcoordinationwithWrightCountySheriff’sOffice. e.ProvideaCertificateofInsurancefortheevent,includingliquorand generalliability,withtheCitynamedasasecondinsured.(received) 2.MotiontodenySpecialEventPermitallowingtemporaryuseofthecommuter ParkandRidelotforTasteoftheTown. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1above. D.SUPPORTINGDATA: A.RotaryApplication,Narrative&SitePlans B.EventCertificateofInsurance CityCouncilAgenda:07/13/15 1 2F.Considerationofapprovinganapplicationforone-daytemporaryon-saleliquor licenseforMonticelloRotaryClubforTasteoftheTownevent (CS/KTB) A.REFERENCEANDBACKGROUND: TheMonticelloRotaryClubisrequestingapprovalofanapplicationforaone-day temporaryon-saleliquorlicensefortheTasteoftheTowneventonSeptember10,2015. Thiseventisplannedtotakeplaceatthecity’sParkandRidelot(9250DeeganAvenue NE)pendingapprovalofarrangementsbytheCityCouncilintherelatedspecialevent permitincludedasagendaitem#2E. TheRotaryClubhaspaidthefeeandprovidedacertificateofinsuranceforthisevent whichincludesliquorliabilityandshowstheCityasasecondinsured. A1.BudgetImpact:NA A2.StaffWorkloadImpact:MinimalstafftimetosendapplicationtoStateAlcohol andGamblingDivisionforapproval. B.ALTERNATIVEACTIONS: 1.Motiontoapprovetheapplicationfora1-daytemporaryliquorlicenseforthe MonticelloRotaryClubonSeptember10,2015fortheirTasteoftheTownevent, contingentonapprovalofthespecialeventpermit. 2.Motiontodenytheapplicationfortemporaryliquorlicense. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1forapprovaloftheapplication. D.SUPPORTINGDATA: Applicationfortemporaryliquorlicense CertificateofInsuranceforTasteoftheTown :HVWFKHVWHU)LUH,QVXUDQFH&RPSDQ\ 7KH&HUWLILFDWH+ROGHULVLQFOXGHGDV$GGLWLRQDO,QVXUHGZKHUHUHTXLUHGE\ZULWWHQDQGVLJQHGFRQWUDFWRUSHUPLWVXEMHFWWRWKHWHUPV DQGFRQGLWLRQVRIWKH*HQHUDO/LDELOLW\SROLF\EXWRQO\WRWKHH[WHQWERGLO\LQMXU\RUSURSHUW\GDPDJHLVFDXVHGLQZKROHRULQSDUW E\WKHDFWVRURPLVVLRQVRIWKHLQVXUHG  /RFNWRQ&RPSDQLHV  5RWDU\#ORFNWRQFRP 07/01/2015 CityofMinticello 505WalnutStreetSuite#1 MonticelloMN55362 RE:TasteoftheTown-locatedinPark&RideLotat9250Deegan AvenueNE,Monticello,MN553629/10/2015 CityCouncilAgenda:07/13/15 1 2G.ConsiderationofapprovingaSpecialEventPermitallowingexclusiveuseofWest BridgeParkandrelatedassistanceinconjunctionwiththeBrewfesteventon August15,2015.Applicant:MonticelloLionsClub (PW/AS) A.REFERENCEANDBACKGROUND: TheCityCouncilisaskedtoconsiderapprovalofaspecialeventpermitfortheBrewfest event,acraftbeer-tastingfundraiserorganizedbytheMonticelloLionsClub.Therequest hasseveralassociatedconsiderations: a)ApprovalforuseofWestBridgeParkfrom7:00AM–10:00PM b)Approvaloftheuseofcityparkinglotsinthedowntownarea c)Approvalforcitystaffassistanceforpreparationandset-up d)ClosureofportionsofW.RiverStreetandWalnutStreet Thisadult-orientedcommunityeventisproposedtooccurSaturday,August15th,2015, from3to7p.m.,andisbeingpromotedandheldincooperationwitheligibleMinnesota craftbrewvendorsandlocalfoodvendors.Brewfestorganizersareexpecting120brew typesat45tables,aswellaslocalrestaurantvendors,andanattendanceof1500persons. Brewfestrepresentativeshaveindicatedthattheset-upfortheparkwillbeverysimilarto lastyear’sevent.Asiteplanfromthe2014eventisincluded,butrequiresfinal verificationbyeventorganizersandPublicWorksstaffasaconditionofapproval.Asa conditionofapproval,theBrewfestCommitteewillbeaskedtocoordinatewiththeParks SuperintendentandStreetsSuperintendentonsiteplanningandparkingcoordination. TheeventisproposedtobelocatedinWestBridgePark.Eventattendeeswouldaccess theparkfromdifferentlocationsnearby,withrestrictedpointsofentryintotheeventarea intheparkitself.TheBrewfestCommitteeindicatesintheattachedapplicationnarrative thattheeventareawithintheparkwillbesectionedoffwithtemporaryfencinginorder torestrictthepointofentrytothoseover21yearsofage,asthiseventwillbelimitedto onlythosepersonsover21holdinganeventticket.TheLionsClubwillberesponsible forplacementoffencingaroundtheparkperimeterandforsignageattheparkinglots, withsnowfenceandpostsprovidedbytheCityasisavailable. Uponapprovalofthepermit,theStreetsDepartmentwillplaceasignatWestBridge ParkindicatingthattheentireparkwillbeclosedforprivateuseonAugust15th andthere wouldbenoaccesstotheparkplaygroundonAugust15th.TheParksSuperintendenthas alsorequestedthattheBrewfestCommitteeprovideadvancenotificationforrequested parkingareaclosures.ParkingattheCedarStreetGardenCenterwillbereviewedwith theEDA. TheBrewfesteventwillincludeabandforbackgroundlistening.Itisnotanticipatedthat thiswouldcreateanyconcernsaboutsoundorvolume.However,theLionsClubisbeing askedtoprovideadvancenoticeoftheeventtosurroundinghomesandbusinesseswithin a2-blockradius. CityCouncilAgenda:07/13/15 2 TheBrewfestCommitteeisseekingCityassistanceforprovidingbarricades,cones, picnictables,andset-upofthoseitems.TheCommitteewillbeaskedtoverifytrashand portablerestroomservicesfortheevent.TheCommitteehasrequesteduseofthepark from7:00AM–10:00PMtoaccommodateset-up,clean-upandtear-downbyLionsClub members. Aswiththe2014event,PublicWorksstaffhasproposedaplantoblockoffsomestreets intheareaofWestBridgeParkinordertocontroltrafficflowintoandoutofthepark vicinity.AnyapprovaliscontingentoncoordinationwiththeStreetsDepartmentand WrightCountySherriff’sOfficeforfinalsecurity,trafficcontrolandstreetclosures.A mapoftheproposedclosuresandsiteplanhasbeenpreparedbytheStreet Superintendentandisattachedforreference. TheSheriff’sOfficehasreviewedthepermitapplicationandhasindicatednoissueswith theproposedpermit;theSheriff’sOfficenotedthattheeventorganizershaveinthepast hiredanoff-dutydeputytoassistwithsecurity. TheMonticelloLionsClubisrequiredtoobtaininsurancetocovertheeventandits activities,includingliquorliabilitycoverage,withtheCitynamedassecondinsured.The LionsClubisresponsibleforverifyingthatindividualfoodandbeveragevendorshave theappropriateinsurancecoverageandstatepermits.TheLionsClubisexpectedto providesecurityfortheeventthroughtheWrightCountySheriff’sDepartment. Brewfestisdesignedtobeafundraiserforthisnon-profitorganization.Thegrouphas indicatedthattheLionswereabletogivebackapproximately$33,000tothecommunity asadirectresultoflastyear’sBrewfestevent. TheMonticelloLionsClubhasalreadyobtaineda1-daytemporaryon-saleliquorlicense fortheevent. A1.BudgetImpact:None. A2.StaffWorkloadImpact:TheLionsClubisrequestingCityassistancefor deliveryandpick-upofbarricades,cones,andpicnictables.Thesewillbe deliveredtothesiteandpickedupduringregularstaffhoursbytheParks Department(estimated16hours).TheStreetSuperintendentwillalsoprepareand provideasiteplanforbarricadeandconeplacement.TheStreetsDepartmentwill beresponsibleforplacingandremovingallstreetbarricadesandsignage (estimated12hours). B.ALTERNATIVEACTIONS: 1.MotiontoapprovetheSpecialEventPermitallowingtemporaryuseofWest BridgeParkfortheMonticelloLionsBrewfesteventfrom7a.m.to10p.m.on Saturday,August15th,2015,includingCityassistance,useofmunicipalparking CityCouncilAgenda:07/13/15 3 lots,andstreetclosuresasdescribedinthestaffreportofJune13th,2015; contingenton: a.ContinuedsiteplanandparkingusecoordinationwiththeStreet SuperintendentandParkSuperintendent. b.AppropriatesignageandfencingincoordinationwiththeStreetandPark Superintendents. c.Verificationoftrashandportablebathroomservicesfortheevent. d.Verificationofnotificationofaffectedlocalbusinessesandresidents withina2-blockradiusoftheParkbypermitholder,nolaterthantwo weekspriortoevent. e.NotificationandeventcoordinationwithWrightCountySheriff’sOffice. f.ProvideaCertificateofInsurancefortheevent,includingliquorand generalliability,withtheCitynamedasasecondinsured. 2.MotiontodenySpecialEventPermitforBrewfesteventonAugust15th,2015. C.STAFFRECOMMENDATION: CitystaffsupportsAlternative#1above. D.SUPPORTINGDATA: A.Application&Narrative–LionsClub B.AerialSiteImageshowingproposedstreetandparkinglotclosures,2015 3RDSTW. ONE WAY PATHWAY CLOSED A-FRAME BARRICADEROADCLOSED AHEAD ROAD CLOSED ONE WAY ROADCLOSED AHEAD ROADCLOSED AHEAD A - F R A M E B A R R I C A D E A-FRAMEBARRICADE A-FRAMEBARRICADEA-FRAMEBARRICADE ROADCLOSEDTOTHRU TRAFFIC ROADCLOSED AHEAD ROADCLOSEDAHEAD BREW-FESTPARKING 2014MONTICELLO BREW-FEST RIVERSTW. RIVERSTE. CEDARST BROADWAYSTE. BROADWAYSTW. WALNUTST FRONTST LINNST LINNST WALNUTST HWY25 HWY25 WESTBRIDGEPARK EASTBRIDGEPARK RIVERSTW. BROADWAYSTW. CityCouncilAgenda:07/13/15 1 2H.ConsiderationofauthorizingWSB&AssociatestopreparethePart2amendment totheWellheadProtectionPlan (WSB) A.REFERENCEANDBACKGROUND: CouncilisrequestedtoconsidertheproposalfromWSB&Associatestopreparethe MonticelloWellheadProtectionPlan(WHPP),Part2Amendment,asmandatedbythe MinnesotaDepartmentofHealth(MDH). ThegoaloftheWHPPistopreventhuman-causedcontaminantsfromenteringthewater supplywellsandtoprotectallwhousethewatersupplyfromadversehealtheffects associatedwithgroundwatercontamination TheCouncilhadauthorizedthecompletionofPart1.Apublicmeetingwasheldon April27,2015todiscussthefindingsandPart1report.Part1consistedofthefollowing: 1)DelineationsoftheWellheadProtectionAreas(WHPA). 2)DelineationofaDrinkingWaterSupplyManagementArea(DWSMA). 3)Assessmentsofwellandaquifervulnerabilityrelatedtotheseareasforthe primarywatersupplywellsusedbyMonticello. AscopingmeetingwasheldtodefinethescopeandscheduleforPart2oftheWHPP amendmentonApril29,2015.Part2ofaWHPPdescribeshowtheresultsofthePart1 Plancanbeappliedtobestprotectacommunity’swatersupply.ThePart1Plandefined theareaneededtobeprotected,whilePart2willprovidetheactionplantodoso. Ingeneral,Part2willprovidethefollowing: •MeettherequiredparametersoutlinedintheMDHScoping2Decisionletter (enclosed),specificallytocompleteaninventoryofthepertinentpotential contaminantsourceswithintheapprovedDrinkingWaterSupplyManagement Area(DWSMA),anddevelopamanagementplantoaddresspotential contaminantsourcesandassociatedreportingrequirements. •DevelopSourceWaterProtectionPlanthatisusefultotheCity,andnotmerely thecompletionofamandatedtask. ThefinalplanisanticipatedtobeapprovedbytheMDHbyMay31,2016.Amore detailedworkplanisenclosedwithprojectmilestonesanddates.Afterapproval,theplan isvalidfor10years,atwhichpointanotheramendmentmaybemandatedbytheMDH. A1.BudgetImpact:TheproposalfromWSBtocompletetheWHPPamendment Part2is$19,570.FundsareavailableintheWaterFundandwerebudgetedfor 2015. CityCouncilAgenda:07/13/15 2 A2.StaffWorkloadImpact:TheUtilitySuperintendenthadparticipatedinthePart 2scopingmeetingandwillreviewthedataandprovideinputforthePart2report. TheCommunityDevelopmentDirectorwillbeinvolvedwithaddressinganyland useimpactsandwilloverseeanyamendmentstothezoningcodeforthe DWSMA.CurrentlyChapter3,Section3.7-OverlayZoningDistrictsofthe zoningcodereservesasectionfortheDWSMA. B.ALTERNATIVEACTIONS: 1.MotiontoauthorizeWSB&AssociatestopreparethePart2amendmenttothe WellheadProtectionPlanatacostnottoexceed$19,570. 2.MotiontodenytheproposalfromWSB&Associatesatthistime. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative1.ThePart2amendmentismandatedbytheMDH andmustbecompletebyMay31,2016. D.SUPPORTINGDATA: A.WSBLetterProposal B.PlanAmendmentWorkPlan C.MDHScopingDecisionNoticeandMeetingSummary-5/7/15 engineering planning environmental construction 477 Temperance Street St. Paul, MN 55101 Tel: 651-286-8450 Fax: 651-286-8488 Equal Opportunity Employer wsbeng.com K:\01494-880\Admin\Docs\LTR PROP-Monticello-WHPP2-070815.docx July 8, 2015 Mr. Jeff O’Neill City Administrator City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Re: Proposal to Provide Professional Engineering Services for the Wellhead Protection Plan Part 2 Amendment City of Monticello, MN Dear Mr. O’Neill: WSB & Associates, Inc. (WSB) is pleased to present this proposal to the City of Monticello (City) to provide professional engineering services as they relate to the City’s Wellhead Protection Plan (WHPP) Part 2 Amendment. The preparation of the City’s WHPP is a requirement of Minnesota Rules 4720.5100 to 4720.5590. WSB’s overall goal is to help Monticello compose a source water protection plan that is both useful to the City and meets the requirements of MN Rules as interpreted by the Minnesota Department of Health (MDH). Specific objectives include:  Meet the required parameters to be outlined in MDH Scoping 2 Decision letter (attached), specifically to complete an inventory of the pertinent potential contaminant sources within the approved Drinking Water Supply Management Area (DWSMA), and develop a management plan to address potential contaminant sources and associated reporting requirements.  Develop Source Water Protection Plan that is useful to the City, and not merely the completion of a mandated task. The goal of the WHPP is to prevent human-caused contaminants from entering the water supply wells and to protect all who use the water supply from adverse health effects associated with groundwater contamination. Project Approach/Scope of Services Part 2 of a WHPP describes how the results of the Part 1 Plan can be applied to best protect a community’s water supply. The Part 1 Plan defined the area needed to be protected, while Part 2 will provide the action plan to do so. A successful Part 2 WHPP process is developed through integration and comprehensive analysis of a variety of different types of data. There are four data elements that make up a WHPP – Physical Environment, Land Use, Water Quantity, and Water Quality as described in the attached Scoping 2 Decision letter from the MDH (attached). Mr. O’Neill July 8, 2015 Page 2 K:\01494-880\Admin\Docs\LTR PROP-Monticello-WHPP2-070815.docx Once the above data elements are collected and interpreted, impacts of changes in land and water use can be assessed. This will allow issues, problems, and opportunities to be identified and included in the WHPP. Among the issues and problems is a Potential Contaminant Source Inventory (PCSI), in which the requirements are explicitly identified by the MDH. Another item required by the MDH is identifying an alternate water supply as part of a Water Emergency and Conservation Plan. This is both an issue and opportunity that the Part 2 WHPP will address. Other issues and opportunities that may be included in this WHPP are changes in zoning or land use, possible cooperation/collaboration with other water users, and conflicts with surface water management. Since the Part 2 WHPP establishes action items, there must be a way to measure the effectiveness of these items. Each action item will include a description of how the item will be analyzed and the results utilized to keep the goal relevant. Doing this makes the plan dynamic and more valuable in the long run. A report will be prepared to satisfy the MDH reporting requirements for Part 2 of the WHPP. The report and associated GIS files will be delivered in an electronic format on compact disks (CD), per MDH requirements. Electronic copies of the draft report and two bound hard copies of the final report will be presented to the City. The Minnesota Rules require that the results of Part 2 of the WHPP to be presented to the public at a public hearing. This proposal includes presenting the results of this work at one public hearing. Work Plan To complete the Part 2 WHPP, we propose to complete the following tasks: Task 1 – Project Management Project management tasks will ensure the project is completed accurately, on-time, and within budget. In addition, Task 1 includes communication between the MDH, the City, and WSB staff. Task 2– Data Collection During this phase, we will compile the data necessary to complete the WHPP. This includes all of the required elements of the Plan as identified by the MDH. During this phase, land use, zoning, utilities, surface water, and transportation route data are collected. Data tables and existing maps will be assembled to complete MDH requirements. The following elements need to be assessed:  Physical Environment  Land Use  Water Quantity  Water Quality Task 3 –Potential Contaminant Source Inventory The purpose of this task is to complete the PCSI per MDH requirements. Based on the vulnerability assessment completed in Part 1 of the Plan, an inventory is conducted on items such as wells, storage tanks, spill sites, etc. The inventory is verified, coded, and a map and table are produced to show the location of the potential contaminant source sites. Task 3 includes all work associated with the PCSI as well as a Pre-PCSI and PCSI meeting as recommended by MDH. Task 4 –Report The purpose of this task is to develop a report to meet the MDH requirements for the assessment of all elements in the protection of the DWSMA. Included in the report are the assessment of data elements, the Mr. O’Neill July 8, 2015 Page 3 K:\01494-880\Admin\Docs\LTR PROP-Monticello-WHPP2-070815.docx identification of issues, problems, and opportunities, implementation action plans, and a contingency strategy. The draft report will be updated to respond to comments made during the review process and by City and MDH staff. Task 5 – Public Hearings Currently Chapter 3, Section 3.7-Overlay Zoning Districts of the zoning code reserves a section for addressing management of the DWSMA as related to land use and development. An amendment to the zoning code for the DWSMA will be required, which includes a public hearing presentation at the Planning Commission meeting. In addition, as required by the MDH, the final Part 2 report will be presented to the public at a Public Hearing. This public hearing will take place at one City Council meeting. Task 6 – Project Administration During the course of this project, WSB will prepare all reports for submittal including both the local government review as well as the MDH state agency review. In addition, WSB Admin staff will assist with public hearing advertisement and other Planning Commission and City Council preparation items. Proposed Fee WSB proposes to complete the above scope of services for an hourly not to exceed fee of $19,570.00. Schedule WSB can begin work immediately. Completion of the final plan will require a 60 day review period followed by a public hearing before the plan can be submitted to the MDH for their review and approval by May 31, 2016. This represents our total understanding of the project and proposed scope of services. If you are in agreement with the scope of services, please have the City block of this letter signed and return a copy to WSB. Our receipt of an executed copy will be WSB’s authorization to proceed. Should the City request additional services outside of the above scope of services, we will work with you to establish a revised scope and fee. Please contact me at your convenience at (763) 231-4874 if you have any questions or concerns relating to this proposal as presented. We appreciate the opportunity to assist you and your staff with completion of the City’s WHPP Part 2. Sincerely, WSB & Associates, Inc. Leslee Storlie Project Manager Attachments Mr. O’Neill July 8, 2015 Page 4 K:\01494-880\Admin\Docs\LTR PROP-Monticello-WHPP2-070815.docx ACCEPTED BY: City of Monticello Name Title Date CityCouncilAgenda:07/13/15 1 2I.ConsiderationofadoptingResolution#2015-053statingintenttoreimbursefrom bondproceedsfor2016StreetReconstructionImprovementsandadjusting maximumreimbursementamountsforPhosphorousReductionandOther ImprovementstotheWastewaterTreatmentFacility&Systemandfor miscellaneousimprovementprojectsincludingSchoolBoulevard/FallonAvenueand 85thStreetImprovements (WO) A.REFERENCEANDBACKGROUND: TheInternalRevenueServicerequirestheCitytoadoptaresolutiondeclaringtheofficial intenttoreimbursecertainprojectexpendituresfrombondproceeds,iftheCityplansor wouldissuebondstofinanceprojectcosts.Bypassingthisresolution,itwouldallowthe Citytobondforthe2016StreetReconstructionimprovementsandincludeimprovements tothewastewatertreatmentfacilityandsystemandimprovementsonSchool Boulevard/FallonAvenueand85th Streetinafuturebondissue.Withouttheresolution, the2016streetreconstructionprojectcouldnotbefundedbybonds.AtthistimetheCity isplanningonissuingbondstofinancetheseprojects. A1.BudgetImpact:Byadoptingtheresolution,theCitywouldhavetheabilityto reimburseitselfwithbondproceedsforprojectexpenditures. A2.StaffWorkloadImpact:Therewouldbenoimpactonthestaffbythisaction. WhentheCityissuesbondstherewouldbestafftimeandconsultantcostsrelated tothebondissue. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2015-053declaringtheofficialintentoftheCityof Monticellotoreimbursecertainexpendituresfromtheproceedsofbondstobe issuedbytheCityforthe2016StreetReconstructionProject,School Boulevard/FallonAvenueand85thStreetImprovements(CityProjectNo. 14C003),andPhosphorousReduction,DigesterCover,andOtherWastewater TreatmentFacilityandSystemImprovements(CityProjectNo.ZZPHOSand 14C002). Approvalofthismotionadjuststhemaximumdebtamountthatwasadoptedin previousresolutions:Resolution#2014-073forthePhosphorusReductionand otherWWTFImprovements;andResolution#2014-113formiscellaneous projectsincludingSchoolBoulevard/FallonAvenueand85th Street Improvements. 2.MotiontonotadoptResolution#2015-053declaringtheofficialintentto reimburseexpendituresfromtheproceedsofbondsatthistime. CityCouncilAgenda:07/13/15 2 C.STAFFRECOMMENDATION: CitystaffsupportsAlternative#1. D.SUPPORTINGDATA: Resolution#2015-053 CopyofResolution#2014-113 CopyofResolution#2014-073 CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2015-053 DECLARINGTHEOFFICIALINTENTOFTHECITYOFMONTICELLOTO REIMBURSECERTAINEXPENDITURESFROMTHEPROCEEDSOFBONDSTOBE ISSUEDBYTHECITYFORTHE2016STREETRECONSTRUCTIONPROJECT, SCHOOLBOULEVARD/FALLONAVENUEAND85THSTREETIMPROVEMENTS (CITYPROJECTNO.14C003),ANDPHOSPHOROUSREDUCTION,DIGESTER COVER,ANDOTHERWASTEWATERTREATMENTFACILITYANDSYSTEM IMPROVEMENTS(CITYPROJECTNO.ZZPHOSAND14C002) WHEREAS,theInternalRevenueServicehasissuedTreas.Reg.§1.150-2providingthat proceedsoftax-exemptbondsusedtoreimbursepriorexpenditureswillnotbedeemedspent unlesscertainrequirementsaremet;and WHEREAS,theCityexpectstoincurcertainexpenditureswhichmaybefinancedtemporarily fromsourcesotherthanbonds,andreimbursedfromtheproceedsofabond; WHEREAS,theCityhasdeterminedtomakethisdeclarationofofficialintent(“Declaration”)to reimbursecertaincostsfromproceedsofbondsinaccordancewiththeReimbursement Regulations. NOW,THEREFORE,BEITRESOLVEDBYTHECITYCOUNCILOFTHECITYOF MONTICELLO(THE“CITY”)ASFOLLOWS: 1.TheCityreasonablyintendstomakeexpendituresfortheprojectsdescribedinExhibitA (the“Projects”),andreasonablyintendstoreimburseitselfforsuchexpendituresfromthe proceedsofdebttobeissuedbytheCityinthemaximumprincipalamountdescribedin ExhibitA.Allreimbursedexpenditureswillbecapitalexpenditures,costsofissuanceof thebonds,orotherexpenditureseligibleforreimbursementunderSection1.150-2(d)(3) oftheReimbursementRegulations. TheCityherebyadjuststhemaximumdebtamountsforprojectsincludedinprevious resolutionsdeclaringofficialintenttoissuebonds,asshowninExhibitA. 2.ThisDeclarationhasbeenmadenotlaterthan60daysafterpaymentofanyoriginal expendituretobesubjecttoareimbursementallocationwithrespecttotheproceedsof bonds,exceptforthefollowingexpenditures:(a)costsofissuanceofbonds;(b)costsin anamountnotinexcessof$100,000or5percentoftheproceedsofanissue;or(c) “preliminaryexpenditures”uptoanamountnotinexcessof20percentoftheaggregate issuepriceoftheissueorissuesthatfinanceorarereasonablyexpectedbytheCityto financetheprojectforwhichthepreliminaryexpenditureswereincurred.Theterm “preliminaryexpenditures”includesarchitectural,engineering,surveying,bondissuance, andsimilarcoststhatareincurredpriortocommencementofacquisition,constructionor rehabilitationofaproject,otherthanlandacquisition,sitepreparation,andsimilarcosts incidenttocommencementofconstruction. 3.ThisDeclarationisanexpressionofthereasonableexpectationoftheCitybasedonthe factsandcircumstancesknowntotheCityasofthedatehereof.Theanticipatedoriginal expendituresfortheProjectandtheprincipalamountofthebondsdescribedinparagraph 1areconsistentwiththeCity’sbudgetaryandfinancialcircumstances.Nosourcesother thanproceedsofbondstobeissuedbytheCityare,orarereasonablyexpectedtobe, reserved,allocatedonalong-termbasis,orotherwisesetasidepursuanttotheCity’s budgetorfinancialpoliciestopaysuchprojectexpenditures. 4.TheCityAdministratorisauthorizedtodesignateappropriateadditionstoExhibitAin circumstanceswheretimeisoftheessence,andanysuchdesignationshallbereportedto theCouncilattheearliestpracticabledateandshallbefiledwiththeofficialbooksand recordsoftheCityasprovidedinSection3. 5.Thisresolutionisintendedtoconstituteadeclarationofofficialintentforpurposesof Treas.Reg.§1.150-2andanysuccessorlaw,regulation,orruling. ADOPTEDBY theCityCouncilthis13thdayofJuly,2015. CITYOFMONTICELLO __________________________________ BrianStumpf,Mayor ATTEST: __________________________________ JeffO’Neill,CityAdministrator EXHIBITA TOOFFICIALINTENTRESOLUTIONNO.2015-053 ADOPTEDJuly13,2015 DATEOF DECLAR ATION DESCRIPTIONOFPROJECT MAXIMUM PRINCIPAL AMOUNTOF DEBT FORPROJECT 7/13/2015 2016STREETRECONSTRUCTIONPROJECT- including,butnotlimitedto,constructionofimprovements andindirectcosts,suchaslegal,engineering, administrative,rightofwayacquisition(land,etc.)and financingcosts.Engineeringcostsincludessurvey, feasibilitystudy,environmentaldocuments,permitting, preliminaryandfinaldesign,preparationofplansand specs,biddingadministration,constructionmanagement, staking,inspectionandmaterialtesting. $6,500,000 7/13/2015 MISCELLANEOUSIMPROVEMENTSINCLUDING SCHOOLBOULEVARD/FALLONAVENUEAND85TH STREETIMPROVMENTS(CITYPROJECTNO. 14C003)-Project(s)costs-including,butnotlimitedto, constructionofimprovementsandindirectcosts,suchas legal,engineering,administrative,rightofwayacquisition (land,etc.)andfinancingcosts.Engineeringcostsincludes survey,feasibilitystudy,environmentaldocuments, permitting,preliminaryandfinaldesign,preparationof plansandspecs,biddingadministration,construction management,staking,inspectionandmaterialtesting. [PriorOfficialIntentResolution#2014-113] $1,400,000 7/13/2015 PHOSPHOROUSREDUCTIONANDOTHER IMPROVEMENTSTOTHEWASTEWATER TREATMENTFACILITYANDSYSTEM(CITY PROJECTNO.ZZPHOSANDCITYPROJECTNO. 14C002)-including,butnotlimitedto,constructionof improvementsandindirectcosts,suchaslegal, engineering,administrative,rightofwayacquisition(land, etc.)andfinancingcosts.Engineeringcostsincludes survey,feasibilitystudy,environmentaldocuments, permitting,preliminaryandfinaldesign,preparationof plansandspecs,biddingadministration,construction management,staking,inspectionandmaterialtesting. [PriorOfficialIntentResolution#2014-073] $3,500,000 CityCouncilAgenda:07/13/2015 1 2J.ConsiderationofamendingtheRiversideCemeteryRulesandRegulationsto removeSection14.3.7regardingbanningofguns (CS/TP) A.REFERENCEANDBACKGROUND: TheRiversideCemeteryRulesandRegulationswereapprovedbytheCityCouncilon November1,2001andamendedseveraltimes.OneoftherulesunderSection14– GeneralRegulationsincludedabanongunsinthecemetery.Understatestatutes,the Cityisnotallowedtodothat.Therefore,Councilisaskedtoapproveanamendmentto therulestoremoveSection14.3.7,whichbannedfirearms,ingeneral,frombeing broughtintothecemetery. A1.BudgetImpact:NA A2.StaffWorkloadImpact:NA B.ALTERNATIVEACTIONS: 1.MotiontoapproveanamendmenttotheRiversideCemeteryRulesand RegulationstoremoveSection14.3.7andrenumberaccordingly. 2.Motionofother. C.STAFFRECOMMENDATION: CitystaffandtheParksCommissionrecommendsAlternative#1approvingtheproposed amendment. D.SUPPORTINGDATA: CopyofexcerptfrompreviousRulesandRegulations(3/9/15) CopyofRiversideCemeteryRulesandRegulations,withrevision Est.2001 CITYOFMONTICELLO RIVERSIDECEMETERY RULES&REGULATIONS Est.2001 RIVERSIDECEMETERY RULES&REGULATIONS F:ADMIN\\WORDPROC\RIVERSID\RULES.FRM:EFFECTIVE11/01/01:AMENDED01/22/2004 -PAGE1OF10- TableofContents 1.PURCHASEOFGRAVES:......................................................................................................................2 2.CONDITIONSOFGRAVEPURCHASE:...............................................................................................2 3.TRANSFEROFGRAVES:.......................................................................................................................3 4.DESCENTOFGRAVES:.........................................................................................................................3 5.BURIALPERMITS:.................................................................................................................................3 6.INTERMENTS:.........................................................................................................................................4 7.DELAYOFINTERMENT:......................................................................................................................5 8.DISINTEMENTS:.....................................................................................................................................5 9.MONUMENTS,MARKERSANDFOUNDATIONS:............................................................................5 10.PERMANENTCARE:..........................................................................................................................6 11.LANDSCAPINGIMPROVEMENTS:..................................................................................................6 12.PERPETUALCARE:............................................................................................................................7 13.HOURSOFOPERATION:...................................................................................................................7 14.GENERALREGULATIONS:...............................................................................................................8 15.PENALTIES:.........................................................................................................................................9 16.CEMETERYMANAGEMENT:...........................................................................................................9 ATTEST..........................................................................................................................................................10 F:ADMIN\\WORDPROC\RIVERSID\RULES.FRM:EFFECTIVE11/01/01:AMENDED01/22/2004 -PAGE2OF10- MONTICELLORIVERSIDECEMETERY RULESANDREGULATIONS EFFECTIVENOVEMBER1,2001 AMENDEDMARCH9,2015 1.PURCHASEOFGRAVES: 1.1AllfeesorchargesshallbesetbytheCityandarepayabletotheCityatthePublic WorksOfficelocatedat909GolfCourseRoad,Monticello,MN55362. 1.2Nograveshallbereservedwiththeintenttopurchaseforanyreason. 1.3Uponfullpaymentofthepurchasepriceofagrave,theCityofMonticellowillissue acemeterydeedconveyingthegrave,executedbytheCity,andthedeedshallberecordedin therecordsoftheCity.Descriptionofthegravewillbeinaccordancewiththecemetery plats,whicharekeptonfileattheCityPublicWorksOffice. 2.CONDITIONSOFGRAVEPURCHASE: 2.1Allgraveswillbesoldsubjecttotheserulesandregulations,orthosehereafter adopted.Thepurchasershallexpresslyagree,inthedeedconveyingthelottheirrightsare subjecttosuchreasonablerulesandregulationsastheCityCouncilmayadopt.Thedeed, andtheserulesandregulations,andanyamendments,constitutethesaleagreementbetween thecemeteryandthelotowner. 2.2Nograveshallbeusedforanypurposeotherthantheburialofhumanremainsand theplacingofappropriatememorials,aspertherulesandregulationsofthecemetery. 2.3Noeasementorrightofintermentisgrantedtoanygraveownerinanyroad,drive, alley,orwalkwaywithintheRiversideCemetery,butsuchroad,drive,alley,orwalkway maybeusedasameansofaccesstotheowner’scemeterygraveorgraves. 2.4TheCityreserves,andshallhave,therighttocorrectanyerrorsthatmaybemadeby iteitherinmakinginterments,disinterment,orremovals,orinthedescription,transfer,or conveyanceofanyintermentproperty,eitherbycancelingsuchconveyanceandsubstituting andconveyinginlieuthereofotherintermentpropertyofequalvalueandsimilarlocation,as faraspossible,orasmaybeselectedbytheCity,orinsolediscretionoftheCity,by refundingtheamountofmoneypaidonaccountofsaidpurchase.Intheeventthatsucherror shallinvolvetheintermentofremainsofanypersoninsuchproperty,theCityreserves,and willhave,therighttoremoveortransfersuchremainssointerredtootherpropertyofequal valueandsimilarlocationasmaybesubstitutedandconveyedinlieuthereof. F:ADMIN\\WORDPROC\RIVERSID\RULES.FRM:EFFECTIVE11/01/01:AMENDED01/22/2004 -PAGE3OF10- 3.TRANSFEROFGRAVES: 3.1Theownerofacemeterygravemaytransferthegrave: 3.1.1TotheCityofMonticelloattheoriginalsaleprice, 3.1.2Anyofhis/herrelatives,whomaysurvivehim/herbywillfortheuseand benefitofthepersondesignatedinthewill,or 3.1.3Tootherpersonsnotrelatedtohim/her. Inallcases,theownermustcompleteandhavesignedbywitnessesandaNotaryPublic,a TransferofOwnershipdocumentprovidedbytheCityofMonticello.Thetransferof ownershipdocumentmustbeapprovedbytheCitypriortothetransferofgravesbythe owner.Whenatransferhasbeenmadeinconformancewiththeserules,theCitywillissuea deedtothenewowner.Inallcases,atransferfeepayabletotheCityofMonticellowill applybasedupontheCity’scurrentfeeschedule. 3.2Nogravewillbepermittedtobere-sold,disposedof,orotherwiseuseduntilthe purchaseprice,andallunpaidcharges,havebeenpaidinfull. 3.3Nocemeterygravemaybere-soldorotherwisedisposedof,withoutapprovalofthe CityofMonticello. 3.4Graveownersmaynotallowintermentstobemadeontheirgraveunlessthetransfer ofgraveprocesshasbeencompleted. 4.DESCENTOFGRAVES: 4.1Onthedeathofagraveowner,suchgraveshallbegrantedandconveyedbytheCity tothedescendant’ssurvivingspouse.Ifthereisnosurvivingspouse,thentothe descendant’seldestsurvivingchild;ifthereisnosurvivingchild,thentothedescendant’s youngestsurvivingsibling;ifthereisnosurvivingspouse,childorsiblingofthedescendent andthegraveisnotsoldduringtheadministrationofthedescendant’sestateorotherwise providedforbywill,theCitymayconveythelottoanyofthedescendant’sparents,siblings ordescendantsasitdeemsfit. 5.BURIALPERMITS: 5.1 AburialpermitshallbeissuedanddeliveredtotheCityofMonticelloforallburials inthecemetery.Inthecaseofacremationburialandcertificateofcremationshallbe deliveredtotheCityofMonticello. F:ADMIN\\WORDPROC\RIVERSID\RULES.FRM:EFFECTIVE11/01/01:AMENDED01/22/2004 -PAGE4OF10- 6.INTERMENTS: 6.1Graveownersaregrantedonlytherightofintermentintheirgraves.TheCityof Monticelloreservestherighttorefusetopermittheintermentofanyonewhoisnotatthe timetheownerofthelot,orarelativeoftheowner,bybloodormarriage.Permission,in writing,andwiththesealofaNotaryPublic,ofthegraveownermustaccompanyall requestsforpermitstoburypersonsnotmembersoftheimmediatefamilyofthegrave owner. 6.2Atleastforty-eight(48)hoursnoticeshallbegivenpriortothetimesetforthe funeralservicetoassureatimelygraveopening. 6.3CityHolidaysareasfollows:NewYear’sDay,MartinLutherKingJrDay, President’sDay,MemorialDay,IndependenceDay,LaborDay,ColumbusDay,Veteran’s Day,ThanksgivingDayandthedayafterThanksgiving,½day–ChristmasEveand ChristmasDay.Ifafamilychoosesaburialthedayfollowingaholiday–thefamilywillbe chargedthePublicWorksLaborfeeasstatedinthemostcurrentfeeschedulefortimespent preparingforburial. 6.4Nocasketshallbeinterredinthecemeteryunlessitisenclosedinaconcretevaultor box.Ashesmustbeplacedinacontainer priortoburial. 6.5Shouldthegraveownerorfuneraldirectorfailorneglecttodesignatethelocation, theCityofMonticelloreservestherighttomaketheintermentinalocationdesignatedbythe City.TheCitywillnotberesponsibleforanyordergivenbytelephone,orforanymistake occurringfromthewantofprecise,properinstructionsastotheparticularlocationwithina plotwhereintermentisdesired. 6.6Intermentsareforthepurposeofthehumandeadonly.Nopets,jewelry,artifacts,or othermaterialitemswillbeallowedtobeburied. 6.7TheCitywillnotbeliablefortheintermentpermit,northeidentityoftheperson soughttobeinterred. 6.8Nointermentofmorethanonebodyshallbemadeinonegrave,exceptinthe followingcases: 6.8.1Oneadultandonechildorinfant. 6.8.2Twoinfantsorchildren. 6.8.3Twournsofashes. 6.8.4Oneadultandoneurnofashes. 6.9Thecostofinterments,includingburialofashes,shallbesetbytheCity. 6.10PaymentinFULLofallfees,mustbemadepriortoburial. F:ADMIN\\WORDPROC\RIVERSID\RULES.FRM:EFFECTIVE11/01/01:AMENDED01/22/2004 -PAGE5OF10- 7.DELAYOFINTERMENT: 7.1 TheCityofMonticellowillbeinnowayliableforanydelayintheintermentofa bodywhenaprotesttotheintermenthasbeenmade,orwhererulesorregulationshavenot beencompliedwith. 8.DISINTEMENTS: 8.1Writtenpermissionofthegraveowner,andthenextofkin,shallbefiledwiththe City,andapermitfromtheCountyHealthOfficershallbesecuredandpresented,andthe requiredfeespaidbeforeanygravemaybeopenedforanypurpose.Atleastthirty(30)days writtennoticemustbegivenpriortoanydisinterment.Thisprovisiondoesnotapplywhen disintermentisorderedbyadulyauthorizedpublicauthority. 8.2Thecostofdisintermentwillbethesameasthecurrentcostofintermentsunless otherwisestatedinthefeeschedule. 9.MONUMENTS,MARKERSANDFOUNDATIONS: 9.1Everymarkermustbeplacedinthespacereservedtherefore,asshownupontheplat ofsuchgrave,orasdirectedbytheCity. 9.2Monumentswillbeallowedintheoldsectionofthecemeteryonlyandarelimitedin sizetoamaximumof36"forasinglegraveandamaximumof72"foradoublegrave, includingthe4”concreteborder. 9.3Monumentswillnotbeallowedinthenewsectionofthecemetery.Onlyflatmarkers ofsizesspecifiedbytheCitywillbeallowedinthenewsectionofthecemetery.Markersize shallnotexceed2’x3’forasinglegrave,2’x4’foradoublegrave,and12”x18”fora singlebabygrave,includingthe4”precastconcreteborder.Allmarkersshallbeuniformin thicknessandaminimumof4"thickwiththeexceptionofthebrassveteranmarkers. Markersembracingmorethantwograveswillnotbepermitted,unlessotherwiseapproved bytheCity. 9.4Nomonumentormarker,noranypartthereof,maybeconstructedoflimestone, sandstone,oranyartificialmaterial. 9.5Afoundationofconcreteisrequiredformonuments/markers.Thereshallbea minimumof4”concretebordersetatgradelevel.Settingofallmonuments/markersshallbe performedbytheCityoritsapprovedcontractor,oranacceptedmonumentcompany. TheCityrequiresthatallabovegroundmonuments/markersmustbeattachedtothe foundationbysettingitintothewetcement,pinningitintothecement,oradheringittothe foundationusingexterioradhesiveforstonessuchasPL400. F:ADMIN\\WORDPROC\RIVERSID\RULES.FRM:EFFECTIVE11/01/01:AMENDED01/22/2004 -PAGE6OF10- 9.6Priortoanymonument/markerplacementorremovalforrepairtheCityorits approvedcontractorshallbecontactedinordertostaketheareaandsupervisetheplacement. 9.7 ForallgravestherewillbeastakingfeepayabletotheCityofMonticelloaslistedin theCity’scurrentfeeschedule.ThisfeemustbepaidINADVANCEofthestaking performedbytheCity. 9.8TheCityrequiresthatallflushmarkersinthenewsectionofthecemeteryshallbeset attheheadendandfaceeast.Furthermore,allmonuments/markersintheoldsectionshall besetattheheadendandfaceeastunlessexistingconditionswarrantplacingelsewhere. SuchvarianceswillbeapprovedinwritingbytheCitypriortomonument/markerplacement. 9.9Onlyonemarkerwillbepermittedonanyonegraveinthenewpartofthecemetery withtheexceptionofaveteranmarkerwhichmaybeplacedatthefootend,unlessotherwise approvedbytheCity. 9.10Amaximumofoneuprightmonumentormemorialbenchmonumentandoneflat markerwillbepermittedonanyonegraveintheoldpartofthecemetery. 9.11Cornermarkersoflikematerialmaybeplacedongravesand/orlotsintheoldpartof thecemeteryonly.Cornermarkersshallbenolargerthan4"x4"squareandshallbeplaced flushwiththeground. 10.PERMANENTCARE: 10.1ThegeneralcareofthecemeteryisassumedbytheCityandincludesthefollowing: 10.1.1Cuttingofthegrassatreasonableintervals; 10.1.2Rakingandcleaningofthegrounds; 10.1.3PruningoftheshrubsandtreesthatmaybeplacedbytheCity;and Maintainingthegeneralpreservationofthegravesandgrounds,walks, roadways,boundaries,andstructures,totheendthatsaidgroundsshallremain andbereasonablycaredforascemeterygrounds. 10.1.4Thegeneralcareofthecemeterymaybeawardedbycontracttoprivatefirms bytheCityastheyseefit. 10.2GeneralcareofthecemeteryassumedbytheCityshallinnocasemeanthe maintenance,repair,orreplacementofanymonumentmarkererectedupongraves,northe doingofanyspecialorunusualworkinthecemetery. 11.LANDSCAPINGIMPROVEMENTS: 11.1Plantsandflowersmaybeplacedaboveground,inpotsonstands.Anypotplacedon thegroundwillnotbetheresponsibilityoftheCityofMonticello,oritsemployees,shouldit bedestroyed.Flowersandotheritemsplaceddirectlyonthegravemayberemovedbythe Citypriortoroutinecuttingofthegrass. F:ADMIN\\WORDPROC\RIVERSID\RULES.FRM:EFFECTIVE11/01/01:AMENDED01/22/2004 -PAGE7OF10- 11.2Notrees,shrubs,orvinesmaybeplanted,normayfencesbeerected.TheCity reservestherighttoremoveanytree,shrub,vine,plant,orflowerswhichmaybecome unsightly,dangerous,ornotinkeepingwiththelandscapedesignofthecemetery. 11.3Pots,urnsorstandsthatareleftunusedonagraveforaperiodofone(1)yearwillbe removedbytheCity. 11.4Alllandscaping,grading,andseedingshallbedonebytheCityofMonticelloorits approvedcontractor.Allgraveswillbeseededandkeptflushwiththeadjacentground. Whenweatherconditionsallow,seedingwillbedonefollowingtheburial. 11.5TheCitywillmakewateravailabletograveownersforcareofflowersandplantsin pots,setinstands,fromspringtofallofeachyear,dependingonweather.Graveowners maywaterthegrasscoveringtheirgraves. 11.6TheCitycannotbeheldresponsibleforanydamages,loss,ortheft,ofanypersonal propertysuchasflowers,plants,decorations,vases,crocks,markers,monuments,etc. 11.7Thelastweekin AprilwillbedesignatedasSpringCleanupinthecemetery.Easter arrangementswillbeallowedoneweekbeforeandoneweekafterEaster. 11.8ThelastweekinOctober willbedesignatedasFallCleanupinthecemetery.All itemsleftonthegroundwillbedisposedofandtheCitywillnotacceptliabilityforsuch items.TheCityrecommendsthat abovegroundpotsandstandsshouldberemovedbefore thefirstfreezeandcanbereplacedattheappropriategravesiteafterthecompletionof SpringCleanup.Ifpotsandstandsareleftyear-round,theCitywillnotacceptresponsibility forsuchitemsiftheyaredestroyedduetoweather,snowplowing,vandalism,etc. 12.PERPETUALCARE: 12.1ThereshallbeestablishedaPerpetualCareFundandallmoniescollectedfor perpetualcareofgravesshallbedepositedinsaidfund,andshallbekeptseparatefromall otherfundsoftheCity. 12.2ThefeeforperpetualcareshallbefixedbytheCounciloftheCitybyresolution. 13.HOURSOFOPERATION: 13.1Thecemeterywillbeopentovisitorsduringthehoursof7a.m.toonehalfhourpast sunset.PermissiontoenteratallothertimesshallbesecuredfromtheCity.TheCity reservestherighttorefuseadmissiontothecemeteryandtorefusetheuseofanyofthe cemetery’sfacilities,atanytime,toanypersonorpersonswhomtheCitymaydeem objectionabletothebestinterestofthecemetery. F:ADMIN\\WORDPROC\RIVERSID\RULES.FRM:EFFECTIVE11/01/01:AMENDED01/22/2004 -PAGE8OF10- 14.GENERALREGULATIONS: 14.1Personswithinthecemeteryshalluseonlythepathsandwalkways,andnooneis permittedtowalkuponoracrosslotsorgravesunlessitisnecessarytodosotogainaccess toone’sownlot.Thecemeteryexpresslydisclaimsanyliabilityforanyinjuriessustainedby anyoneviolatingthisrule. 14.2Personsvisitingthecemeteryorattendingfuneralsarestrictlyprohibitedfromwriting upon,defacing,orinjuringanymonumentormarker,breakingorinjuringanytree,shrub, plant,orotherstructurewithinthecemeterygrounds. 14.3Thefollowingactsareexpresslyprohibited,aswellasanyotherviolationsofCity Ordinancesandregulationsthatmayapply: 14.3.1Thedrivingofmotorvehiclesintothecemetery,unlessattendingafuneral, visitingarelativeorfriendsgavesite,orcarryingonmaintenancework authorizedbytheCity. 14.3.2Thedrivingorparkingofanymotorvehicleacrossoruponanygraveorlot. 14.3.3Loudorboisteroustalkingormusic. 14.3.4Bringingoflunchesorrefreshments,includingalcoholicbeverages,intothe cemeteryorconsumingthemonthegrounds. 14.3.5Peddlingorsolicitingthesaleofanycommoditywithinthecemetery. 14.3.6Placingofsigns,noticesoradvertisementsofanykindwithinthecemetery. 14.3.7Thethrowingofrubbishonanypartofthegrounds. 14.3.8Thewalkingofpets(includingdogs,cats,oranyotherhouseholdpet)on anypartofthegrounds. 14.3.9Thedrivingorparkingofanysnowmobiles,ATV’sormotorizedoff-road bikesonanypartofthegrounds. 14.3.10Theplacingofglasscontainersorbottlesonanypartofthegrounds. 14.4Specialcasesmayariseinwhichtheliteralenforcementorinterpretationofarule mayimposeunnecessaryhardship.TheCityreservestherighttomakeexceptions, suspensions,ormodificationsofanyoftheserulesandregulations,wheninthejudgmentof theCitysuchactionappearsnecessary,andsuchatemporaryexception,suspension,or modificationshallinnowaybeconstruedasaffectingthegeneralapplicationofsuchrules andregulations. F:ADMIN\\WORDPROC\RIVERSID\RULES.FRM:EFFECTIVE11/01/01:AMENDED01/22/2004 -PAGE9OF10- 14.5TheCityofMonticelloreservestherighttoamendtheserulesandregulations wheneveritisdeterminedthatitisinthebestinterestofthecemeterytodoso.Anyandall amendmentstotheseregulationswillbeapprovedbytheCityCouncilofMonticello. 14.6TheCityofMonticelloreservestherighttoremoveallmonuments,markers,flowers, plants,trees,decorations,orothersimilarobjectswheneveranyoftheseobjectsbecome unsafe,unsightly,dangerous,ornotinkeepingwiththelandscapedesignofthecemetery. 14.7Specificcostsforgraves,interments,disinterment,burialofashes,andsetting monuments/markersarenotincludedintheserulesbecauseofthenecessitytorevisethese rates.AcurrentscheduleoffeescanbeobtainedfromtheCity. 14.8Individualswithquestionsorconcernsaboutcemeteryoperationsshallreporttheir concernstotheOfficeofPublicWorksandshallnotdelay,interferewithorharassCity employees,authorizedcontractors,oragentsoftheCityastheygoabouttheirdutiesinthe cemetery. 15.PENALTIES: 15.1ViolationoftheCityOrdinanceisconsideredamisdemeanorandthepenaltyis describedbylaw.ThesecemeteryrulesandregulationsarepartoftheCityOrdinanceand shallbeenforcedandpenaltiesimposedforviolationofsuchrulesandregulations. 16.CEMETERYMANAGEMENT: 16.1TheresponsibilityforthemanagementofMonticelloRiversideCemeteryandall mattersrelatedtheretoshallbevestedintheCity. 16.2TheMonticelloParksCommissionshallbetheoverseeingboardforanymaintenance orotherissueswithregardtoMonticelloRiversideCemetery. ANYQUESTIONSORCONCERNSINREGARDTOTHEMONTICELLORIVERSIDE CEMETERYRULESANDREGULATIONSASSETFORTHHEREIN SHALLBEDIRECTEDTO: MONTICELLOPARKSDEPARTMENT 909GOLFCOURSEROAD MONTICELLO,MINNESOTA55362 TELEPHONE:(763)295-3170 FACSIMILE:(763)271-3272 F:ADMIN\\WORDPROC\RIVERSID\RULES.FRM:EFFECTIVE11/01/01:AMENDED01/22/2004 -PAGE10OF10- ATTEST RIVERSIDECEMETERYRULESANDREGULATIONS UpdatestotheRulesandRegulationsforRiversideCemeterywerepresentedtoCityCouncilattheir meetingonJuly13,2015,forapprovaluponrecommendationoftheMonticelloParksCommission. APPROVEDBY theMonticelloCityCouncilthis13th dayofJuly,2015. CITYOFMONTICELLO _________________________________________ BrianStumpf,Mayor ATTEST: _______________________________________ JeffO’Neill,CityAdministrator CityCouncilAgenda:07/13/15 1 2K.ConsiderationofadoptingResolution#2015-054acceptingquotesandawarding contractforthe2015StreetPavementMarkingProject (TM) A.REFERENCEANDBACKGROUND: Councilisrequestedtoconsideracceptingquotesandawardingacontractforthe2015 StreetPavementMarkingProjecttoCenturyFenceCompanyofForestLake,MNinthe amountof$15,928.20;however,thepricecouldvarydependingontheexactamountof footage.The2015projecttotalsapproximately55,161linearfeetofpavementmarkings (measurementsareestimates).ThestreetstobestripedincludeChelseaRoad(from CSAH18to90th StNE)andEast7th Street(fromCSAH18toSt.Henry’sChurch entrance).ChelseaRoadisscheduledtobechipsealedthisyearsothepavement markingscurrentlytherewillbecovered.TheotherareaincludedisEast7th Streetwhich needsremarkingduetofadingandnormalwear.Theprojectisscheduledforthefirst weekofAugustdependingonweatherandcoincidingwithour2015SealcoatingandFog SealingProject. Staffrequestedquotesfromtwocontractors,AAAStripingServiceofSt.Michaeland CenturyFenceofForestLake.ThelowquotewasreceivedfromCenturyFenceinthe amountof$15,928.20.PublicWorkshasworkedwithbothcompaniesinthepastand hashadverygoodresults. A1.BudgetImpact:Inpreparationforthisproject,sufficientfundswereplacedin the2015StreetDepartmentBudget. A2.StaffWorkloadImpact:Aprojectofthissizenormallytakesoneday.The projectwillbeinspectedbytheCityEngineeringDepartmentandPublicWorks. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2015-054acceptingquotesforthepavement markingprojectandawardingthecontracttoCenturyFenceCompanyofForest Lake,MNintheestimatedamountof$15,928.20dependingonexactlinearfeet forChelseaRoadandEast7th Street. 2.Motiontodenythequotesandnotawardthecontractatthistime. C.STAFFRECOMMENDATION: CitystaffrecommendstheCityCouncilapproveAlternative#1,acceptingquotesand awardingthecontracttoCenturyFenceCompanyofForestLake,MNintheamountof $15,928.20dependingonexactlinearfeet.ThePublicWorksDepartmentand EngineeringDepartmentwillbeinspectingtheprojecttoseethatthecontractoradheres totheplansandspecifications. CityCouncilAgenda:07/13/15 2 D.SUPPORTINGDATA: A.Resolution#2015-054 B.2015PavementMarkingProjectQuotes C.2015PavementMarkingProjectMaps CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2015-054 ACCEPTINGQUOTESANDAWARDINGCONTRACTFORTHE2015STREET PAVEMENTMARKINGPROJECT WHEREAS,theCityhassolicitedquotesforthe2015StreetPavementMarkingProject accordingtotheplansandspecificationsprovidedtothepublic.Quoteswerereceived,opened, andtabulated,andwerefoundtocomplywithsaidplansandspecifications: CONTRACTOR TOTALBASEQUOTE CenturyFenceCompany $15,928.20 AAAStripingServiceCo.$17,301.01 WHEREAS,thequotesubmittedbyCenturyFenceCompany,ForestLake,Minnesota,inthe amountof$15,928.20forthe2015StreetPavementMarkingProject,inaccordancewiththe plansandspecifications,wasthelowestresponsiblequoteandshallbeandherebyisaccepted. NOWTHEREFORE,BEITRESOLVEDBYTHECITYCOUNCILOFMONTICELLO, MINNESOTA: 1.Suchplansandspecifications,acopyofwhichisonfileintheofficeoftheCityClerk, areherebyapproved. 2.Quotessubmittedfortheprojectaccordingtotheplansandspecificationsarehereby accepted. 3.ThetotalcostoftheprojectisdependentontheexactlinearfeetforChelseaRoadand East7th Streetprojectareas. 4.TheCityAdministratorisherebyauthorizedanddirectedtoenterintoacontractwith saidcompanyfortheconstructionofsaidimprovementsforandonbehalfoftheCityof Monticello. 5.ThePublicWorksDepartmentshalldirectandinspecttheproject. ADOPTEDBY theMonticelloCityCouncilthis13th dayofJuly,2015. CITYOFMONTICELLO _________________________________ BrianStumpf,Mayor ATTEST: ________________________________ JeffO’Neill,CityAdministrator P.O. Box 339, Rogers MN 55374 5392 Quam Ave NE, St Michael MN 5537612220 43rd St NE, St Michael MN 55376 June 19, 2015 To Tom Moores: We are quoting the following project Project Epoxy Striping Chelsea Rd & E 7th St Location Monticello Item Description Qty U/M Unit Amount 2582.502 4" Solid Line White - Epoxy 32,445 LF $0.21 $6,813.45 2582.502 4" Broken Line White - Epoxy 1,125 LF $0.21 $236.25 2582.502 4" Broken Line Yellow - Epoxy 1,240 LF $0.21 $260.40 2582.502 4" Solid Line Yellow - Epoxy 10,543 LF $0.21 $2,214.03 2582.502 4" Double Line Yellow - Epoxy 9,284 LF $0.42 $3,899.28 2582.502 24" Solid Line Yellow - Epoxy 524 LF $7.40 $3,877.60 Total $17,301.01 Prices do NOT include RxR insurance, incidental markings or removal. Prices based on 1 mobilization, additional mob charge $1,200.00 Prices based on 50 degree air & pavement temperatures at the time of marking application. Prices firm for 30 days. Bond included in quote Sincerely, Dean E Erickson Estimator 7THSTE(CountyRd18toSt.Henry’sEntrance) ChelseaRdE ChelseaRdW ChelseaRdE CHELSEARD(CountyRd18to90thStNE) CityCouncilAgenda:07/13/15 1 2L.ConsiderationofadoptingOrdinanceNo.619amendingtheMonticelloZoning OrdinanceChapter3,Section7(E)regulatingprincipalstructuresetbacksinnon- riparianside,frontandrearyardsintheMississippiWild&ScenicRecreational RiverDistrict.Applicant:CityofMonticello (AS) A.REFERENCE&BACKGROUND PlanningCaseNumber:2015-024 Request(s):AmendmentstothetextoftheMonticelloZoning Ordinance DeadlineforDecision:NA LandUseDesignation:NA ZoningDesignation:MississippiWildScenicandRecreationalOverlayDistrict ANALYSIS TheCityCouncilisaskedtoconsideramendmentstotheMonticelloZoningOrdinance asitrelatestoprincipalstructuresetbacksinnon-riparianside,frontandrearyardsinthe MississippiWild&ScenicRecreationalRiverDistrict(MWSRR). Atpresent,theMWSRRrequiresthefollowingsetbacksforprincipalstructures: TABLE3-21:WILD&SCENICPRINCIPALSTRUCTURESETBACKS Frontyardsetbackandsetbackfromrights-of-wayorroadwayeasements(setbacks mustbemetfromallroadswhenalotisboundedbytwoormoreroadways) -ArterialRoad 70feet -CollectorRoad 70feet -LocalRoad 30feet -LandlockedParcel 30feet Unsewered Sewered Sideyardsetbacks 30feet 30feet Rearyardsetbacks 30feet 50feet SetbackfromtheOHWof theMississippiRiver 150feet 100feet Setbackfromabluffline 75feet 75feet Sewersetbackfromthe OHW 75feet 75feet Thecurrentside,front,andrearsetbacksintheMWSRRwereestablishedbasedonbest practiceordinancesfortheWildScenicandRecreationalDistrictandarereflectiveof CityCouncilAgenda:07/13/15 2 setbacksmostapplicabletothoselotsmeetingtheminimum200’widthand2acrearea lotdimensionsrequiredbytheMississippiWildScenic&RecreationalRiverDistrict MinnesotaRules. However,manypropertieswithintheWildScenicandRecreationalRiverOverlay DistrictinMonticelloweredevelopedorplattedpriortothe2acre/200’width requirements.Inmanycases,existingresidentiallotsarefarunderthe2acresizeand havedimensionsof66-100’inwidthandoftenlessthan200’indepth. MinnesotaRulesfortheMississippiWildScenic&RecreationalRiverDistrictrequires setbacksfromthenormalhighwaterandblufflines,whichareconsidered“riparian” setbacks.TherearenorequiredsetbacksunrelatedtotheOrdinaryHighWater(OHW) orbluffline.Theadditionalnon-riparianyardsetbackscurrentlyintheordinancehave thereforemadedevelopmentorredevelopmentofthesepropertiesdifficulttoaccomplish withoutvariancerequests. Assuch,amendmentstotheordinancehavebeendevelopedwhichreducetherequired non-ripariansetbackstothosemorereflectiveofbasezoningrequirements.Theexisting setbackrequirementsforresidentialandcommercialdistricts(withexceptionoftheT-N andB-4District)requireastandard30footfrontandrearyardsetback,witha20foot streetsideyardand10footinteriorsideyardsetback.Withanydevelopment,thestricter ofthetwostandardswillapply.Forexample,foralotwithinaB-4Districtbasezoning districtlocatedwithintheMWSRROverlay,theMWSRRsetbackstandardsaremore restrictiveandwillthereforeapply.Theproposedamendmentsareprovidedbelowand intheattacheddraftordinance. TABLE3-21:WILD&SCENICPRINCIPALSTRUCTURESETBACKS Frontyardsetbackandsetbackfromrights-of-wayorroadwayeasements(setbacks mustbemetfromallroadswhenalotisboundedbytwoormoreroadways) -ArterialRoad 30feet -CollectorRoad 30feet -LocalRoad 30feet -LandlockedParcel 30feet Unsewered Sewered Sideyardsetbacks 30feet 10feet Rearyardsetbacks 50feet 30feet SetbackfromtheOHWof theMississippiRiver 150feet 100feet Setbackfromabluffline 75feet 75feet Sewersetbackfromthe OHW 75feet 75feet CityCouncilAgenda:07/13/15 3 TheripariansetbacksfromtheOrdinaryHighWaterandblufflinearenotproposedfor amendment.IncaseswhereayardisimpactedbyablufflineorOHW,theriparian setbackremainsinplaceandwillapply. Asaprocessnote,theCityisrequiredtosubmitanoticeofpublichearingandthe proposedamendmentlanguagetotheMinnesotaDepartmentofNaturalResourcesfor commentatleast30daysbeforethepublichearing.Citystaffhaveprovidedtherequired notice.NoformalcommenthasbeenreceivedbytheDNRasofthetimeofthisreport. However,staffhavespokenwithDNRrepresentativesregardingtheproposed amendments;noissueswereraisedbytheDNRduringthosediscussions. TheCityisalsorequiredtosendanoticeofdecisiononthisitemwithin10daysofthe decisiontotheMinnesotaDepartmentofNaturalResources.Atthattime,theDNRhas theoptiontoissuea“non-approval”noticetotheCityforthedecision.Intheabsenceof a“non-approval”notice,theordinancebecomeseffectivewhenthirtydayshaveelapsed fromthedaytheCommissioneroftheDepartmentofNaturalResourcesreceivednotice ofthefinaldecision,andthecityhasreceivedfromtheCommissionerneither certificationofapprovalnornoticeofnon-approval. TheaboverequiredprocessesarefurtherdescribedinMonticelloZoningOrdinance Section3.7(E)(23). PlanningCommissionReviewandRecommendation ThePlanningCommissionreviewedthisitemduringtheirregularmeetingonJuly7th, 2015,holdingapublichearingontheitem.TheCommissionnotedthatithadpreviously receivedrequestsforvariancetotherequiredsideyardsetbacksintheMWSRROverlay. Duringthehearing,Mr.MikeKraus,Mr.KrisSchwickerath,andMr.WayneJohnson addressedthePlanningCommissioninsupportoftheproposedamendments. Afterdiscussion,thePlanningCommissionrecommended5-0toapprovetheproposed amendments. B.ALTERNATIVEACTIONS ThePlanningCommissionrecommendsAlternative1below. 1.MotiontoadoptOrdinanceNo.619,amendingtheMonticelloZoningOrdinance Chapter3,Section7(E)regulatingprincipalstructuresetbacksinnon-riparianside, frontandrearyardsintheMississippiWild&ScenicRecreationalRiverDistrict, basedonthefindingsthat: a)TheordinanceamendmentsasproposedcontinuetosupporttheComprehensive Plan; b)TheordinanceamendmentsareconsistentwithMinnesotaRulesforthe MississippiWildScenicandRecreationalRiverDistrict;and CityCouncilAgenda:07/13/15 4 c)Theamendmentseliminateconflictsbetweentheordinanceandexisting development,andreducenon-conformitiesintheoverlaydistrict. 2.Motionofother. C.STAFFRECOMMENDATION Staffsupportstheproposedamendments.Theamendmentsasdraftedprovidethe requiredriparian-relatedsetbacksfortheOHWandblufflineintheMississippiWild ScenicandRecreationalRiverOverlayDistrict,whilemaintainingamoreconsistent setbackrequirementwithbasezoningdistrictsfornon-riparianyardsetbacks. D.SUPPORTINGDATA A.OrdinanceNo.619 B.Table3-21withproposedchanges C.MonticelloZoningOrdinanceChapter3,Section7(E),Excerpt D.MonticelloZoningMap,includingMississippiWildScenicandRecreationalRiver Overlay E.ExampleLotsintheMWSRR,Monticello F.MinnesotaRules,6103-0110,Excerpt ORDINANCENO.618 CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA ANORDINANCEAMENDINGTITLE10OFTHEMONTICELLOZONINGCODE FORTHEFOLLOWINGSECTIONS: CHAPTER3,SECTION7–MISSISSIPPIWILDSCENICAND RECREATIONALRIVERDISTRICT THECITYCOUNCILOFTHECITYOFMONTICELLO,MINNESOTA,HEREBY ORDAINS: Section1.Section3.7(E)(8)–Recreationalriverlandusesubdistricts–standards,lot dimensions,setbacks,andimpervioussurfacerequirements,Title10–Zoning Ordinanceisherebyamendedasfollows: Table3-21:WILD&SCENICPRINCIPALSTRUCTURESETBACKS Frontyardsetbacksandsetbackfromrights-of-wayorroadwayeasements: •ArterialRoad:changefrom70feetto30feet •CollectorRoad:changefrom70feetto30feet •LocalRoad:(remainsat30feet) •LandlockedParcel:(remainsat30feet) Sideyardsetbacks: •Unsewered:(remainsthesame) •Sewered:changefrom30feetto10feet Rearyardsetbacks: •Unsewered:changefrom30feetto50feet •Sewered:changefrom50feetto30feet SetbackfromtheOHWoftheMississippiRiver:(remainsthesame) Setbackfromabluffline:(remainsthesame) SewersetbackfromtheOHW:(remainsthesame) Section2.TheCityClerkisherebydirectedtomakethechangesrequiredbythisOrdinance aspartoftheOfficialMonticelloCityCode,Title10,ZoningOrdinance,andto renumberthetablesandchaptersaccordinglyasnecessarytoprovidetheintended effectofthisOrdinance.TheCityClerkisfurtherdirectedtomakenecessary correctionstoanyinternalcitationsanddiagramsthatresultfromsuch amendments,providedthatsuchchangesretainthepurposeandintentofthe ZoningOrdinanceashasbeenadopted. Section3.ThisOrdinanceshalltakeeffectandbeinfullforcefromandafteritspassageand publication.RevisionswillbemadeonlineafteradoptionbyCouncil.Copiesof thecompleteZoningOrdinanceareavailableonlineandatMonticelloCityHall. ORDINANCENO.618 ADOPTEDBY theMonticelloCityCouncilthis13thdayofJuly,2015. CITYOFMONTICELLO __________________________________ BrianStumpf,Mayor ATTEST: ___________________________________ JeffO’Neill,CityAdministrator VOTINGINFAVOR: VOTINGINOPPOSITION: MonticelloZoningOrdinance–Chapter3,Section7–MississippiWildScenicandRecreationalRiverDistrict PROPOSEDCHANGES TABLE3-21:WILD&SCENICPRINCIPALSTRUCTURESETBACKS Frontyardsetbackandsetbackfromrights-of-wayorroadwayeasements(setbacksmustbemetfrom allroadswhenalotisboundedbytwoormoreroadways) -ArterialRoad 30feet -CollectorRoad 30feet -LocalRoad 30feet -Landlocked Parcel 30feet Unsewered Sewered Sideyardsetbacks 30feet 10feet Rearyardsetbacks 50feet 30feet SetbackfromtheOHWofthe MississippiRiver 150feet 100feet Setbackfromabluffline 75feet 75feet SewersetbackfromtheOWH 75feet 75 feet County Hwy 75 Chelsea Rd State Hwy 25 85th St NE 9 0th St N E Linn St Pine St 7th St School Blvd Riverview Dr Cedar St W River St M a r v i n R d Jason Ave Dundas Rd W Broadway St Hart Blvd Country La Haug Ave NE Elm St W 4th St Fenning Ave NE Oakwook Dr Ma ll a r d L a 95th St NE Fallon Ave NE Edmonson Ave NE Mississippi Dr 5th St Country Club Rd Sandberg Rd P e l i c a n L a F a l c o n D r Fenning Ave Walnut St Oak Ridge Dr Oriole La Club View Rd Broadway St Hillcrest Rd E River St Headman La M i l l T r a i l L a Falcon Ave NE Wright StBenton St Elwood Rd Ramsey St 6th St River Mill Dr Wildwood Way Hilltop Dr Mill Run Rd O a k V i e w L a Farmstead Ave Martin Dr 4th St E 3rd St E Red Rock La Gillard Ave NE Maple St Fallon Dr Willow St View La E Grey Stone Ave Marvin Elwood Rd Fieldcrest Cir Fairway Dr Jason Ave NE Vine St M e a d o w L a Jerry Liefert Dr Praire Rd Starling Dr Palm St Un kn ow n o r N o S tree tn ame Fallon Ave Golf Course Rd Falcon Ave Kevin Longley Dr Craig La R e d O a k L a Front St 5th St W Thomas Park D r Locust St M o c k i n g b i r d L a W 3rd St Ea s two o d C i r Bri ar Oa ks Bl v d F a r m s t e a d D r Henipin St E i d e r L a Dayton St Oak La River Forest Dr Meadow Oak Ave Kampa Cir O a k R i d g e C i r M i l l C t R i v e r R i d ge L a Garrison Ave Oakview Ct Dundas Cir Kenneth La Otter Creek Rd Minnesota St Eagle Cir Crocus La Meadow Oak La Stone Ridge Dr Chestnut St 1 2 0 t h S t N E Darrow Ave NE Diamond Dr Pebble Brook Dr Widgeon La Washington St Bunker Cir Homestead Dr Thomas Cir E n d i c o t t T r Center Cir Oak View Cir Sandtrap Cir Countr y Cir Cheyen Ct Old Territoral Rd Tanager Cir Hillcrest Cir Os prey Ct Acorn Cir Balboul Cir S w allo w C ir R iv e r si d e C ir Meadow Oak Ct Matthew Cir E Oak Dr S t o n e R i d g e C ir Oakwood Dr Meadow Oak Ave NE County Hwy 75 Hart Blvd Marvin Rd Marvin Rd Wright St 90th St NE Cedar St Minnesota St 01 City of MonticelloOfficial Zoning Map 10-10-14 :Legend BASE ZONING DISTRICTS Residential Districts -- Low Residential Densities -- Medium Residential Densities -- High Residential De nsities Business Districts Industrial Districts OTHER Water A-O R-A R-1 T-N R-2 R-PUD R-3 R-4 B-1 B-2 B-3 B-4 CCD IBC I-1 I-2 M-H Mississippi Wild, Scenic & Rec Overlay District OVERLAY DISTRICTS Performance Based Overlay District ! ! ! !!!! ! ! !!!!! Shoreland District Special Use Overlay District ! ! ! !!!! ! ! !!!!! Freeway Bonus Sign District PUDs Swan River01 Exam ple Lot L ayouts Sou rce: E sri, Digita lG lo be , Ge oE ye,Earth star G eo gr ap hics, CNES /Airbu s DS,US DA , US GS, A EX, Ge tmap ping ,Aerog rid , IGN, IGP, swisst opo, and theGIS Use r Co mmu nity City Bou nd ar y Ju ly 1, 2 015 Map P owered b y Data Link from W SB & Associa tes 1 inch = 752 f ee t Exam ple Lot L ayouts Sou rce: E sri, Digita lG lo be , Ge oE ye,Earth star G eo gr ap hics, CNES /Airbu s DS,US DA , US GS, A EX, Ge tmap ping ,Aerog rid , IGN, IGP, swisst opo, and theGIS Use r Co mmu nity City Bou nd ar y Ju ly 1, 2 015 Map P owered b y Data Link from W SB & Associa tes 1 inch = 376 fe et CityCouncilAgenda:07/13/15 1 2M.Considerationofapprovingtheindividualpensioncontributionamountfor VolunteerFirefighterReliefAssociationmembers (WO/JohnBauer) A.REFERENCEANDBACKGROUND: TheMonticelloVolunteerFirefightersReliefAssociationmembershipisrequestinga $200increaseinthebenefitlevelusedinretirementcalculations.Thebenefitwould increasefrom$3,100to$3,300peryear.Fully-vestedmemberswouldbepaid$3,300for eachyearofservice.Amemberbecomesfullyvestedafter20yearsoffiredepartment service.Partially-vestedmemberswouldbepaidaportionofthe$3,300asdetermined byyearsofservice.Theearliestthatfullyorpartiallyvestedmemberscanreceivetheir benefitisage50,regardlessofwhentheyretire. Thefollowingisasummaryofthepreviousbenefitchangesthathavebeenapproved: Year BenefitAmount 2000 $2,085 2001 $2,175 2003 $2,225 2004 $2,625 2005 $3,050 2006 $3,275 2007 $3,950 2008 $3,500 2009 $2,650 2010 $2,650 2011 $2,750 2012 $2,750 2013 $2,850 2014 $3,100 2015 $3,300 ByAugust1st ofeachyear,theFireReliefAssociationpresentstotheCityCouncilascheduleof theproposedbenefitsandthetotalliabilitiesassociatedwiththeproposedbenefitincomparison totheassetsoftheassociation.Theincludedschedulesindicatethethreebenefitamountsto membersplustherequiredcitycontribution(none). Basedona$3,300proposedbenefit,thefinancialreportshowsthetotalamountofliabilitythat wouldexistforthepensionamountforthenexttwoyearsandalsoincludesinformationonthe Association’scurrentassetsandprojectedincomeforthenextyear.Ataround4.7%,thetotal incomeprojectionsforinterestandassetappreciationmightnotbeconsideredconservative. However,thesurpluswiththeseprojectionsisestimatedat$186,221for2015.Theestimated surplusfor2014was$163,681.Futurebenefitlevelscanbeadjustedasmarketandotherfactors change.Thedeferralrateforvestedretiredmembersisproposedtoremainat2.5%,whichhalf ofthemaximumallowedbylaw.Thedeferralrateappliestobalancesofretiredmemberswho havenotreachedtheageof50andiseffectiveJanuary1,2016. CityCouncilAgenda:07/13/15 2 A1.BudgetImpact:Thebenefitlevelhasnoimpactonthecity’sbudget. A2.StaffWorkloadImpact:Thereisnostaffimpactwiththisdecision. B.ALTERNATIVEACTIONS: 1.Motiontosetthe2015pensionbenefitlevelat$3,300forcurrentFireRelief Associationmembersandthedeferralrateat2.5%forpastmembers. 2.Motiontograntanalternativebenefitslevel. C.STAFFRECOMMENDATION: CitystaffsupportsAlternative#1. D.SUPPORTINGDATA: ScheduleFormsSC-15forLumpSumPensionPlans,ReportingYear2015 2014MonticelloFireReliefAssociationannualaudit(tobeprovidedatthemeeting) FormSC-15 Page1 ScheduleFormforLump-SumPensionPlans ReportingYear2015 DeterminationofPlanLiabilitiesandRequiredMunicipalContributionfor2016 ReliefAssociation:County/ Counties: EnterAnnualbenefitlevelineffectfor2015:3,300 (Ifyouchangeyourbenefitlevelbefore12/31/2015,theSCmustberecalculatedatthenewlevel.) 2015 2016 SubtotalofPage1Liability-ActiveMembers 803,022 878,526 ActiveMemberInformation PleaseEnterDatesinthisformat: Leavesof Dateof FireDepartment Entry Absence andBreaks in Returnto Service Years Years Birth Date Service Member of Accrued of Accrued Name Status (months)?Service Liability Service Liability 1 BradE.Fyle Active 06/17/195705/01/1984 0 32 105,600 33 108,900 2 MarcA.Simpson Paid 02/24/195601/19/1987 0 29 0 30 0 3 NealB.Kranz Active 04/06/196605/01/1987 0 29 95,700 30 99,000 4 JeffD.Kranz Active 05/30/196305/01/1993 0 23 75,900 24 79,200 5 ToddM.Johnson Active 02/07/196605/01/1993 0 23 75,900 24 79,200 6 SteveA.Hanson Active 06/08/196705/01/1996 0 20 66,000 21 69,300 7 SteveC.Balon Active 06/10/196801/15/1999 0 17 51,480 18 56,034 8 DarylR.Giles Active 11/02/196801/15/2000 0 16 47,124 17 51,480 9 ShawnG.Leach Active 02/20/197709/03/2001 0 14 39,072 15 43,032 10 DonaldA.Anderson Active 10/15/196905/19/2003 0 13 35,310 14 39,072 11 JohnP.Bauer Active 07/01/197105/19/2003 0 13 35,310 14 39,072 12 JasonP.Roubinek Active 11/06/197406/15/2005 0 11 28,314 12 31,746 13 KeithPeterson Active 11/07/197901/15/2007 0 9 21,978 10 25,080 14 KenKako Active 05/24/197301/15/2007 0 9 21,978 10 25,080 15 TimothyA.Ingle Separated/NotVested 01/30/197101/15/2007 3 9 0 10 0 16 KurtisLiefert Active 04/08/198308/15/2008 0 7 16,236 8 19,008 17 MichaelD.Mossey Active 12/15/198408/15/2008 0 7 16,236 8 19,008 18 ThomasM.Johnson Active 08/15/198408/15/2008 0 7 16,236 8 19,008 19 JakeOlinger Active 11/15/198407/18/2011 0 4 8,580 5 11,022 20 JasonMoores Active 06/07/197707/18/2011 0 4 8,580 5 11,022 21 ScottGearey Active 10/06/197710/24/2011 0 4 8,580 5 11,022 22 JoshSamuelson Active 10/05/198608/20/2012 0 3 6,270 4 8,580 23 TonyFair Active 10/21/198609/17/2012 0 3 6,270 4 8,580 24 TrevorMack Active 10/23/198611/18/2013 0 2 4,092 3 6,270 25 NathanKranz Active 06/02/198911/18/2013 0 2 4,092 3 6,270 26 JarridScheinbien Active 11/07/198611/18/2013 0 2 4,092 3 6,270 27 BrandonKranz Active 06/02/198903/17/2014 0 2 4,092 3 6,270 28 ChooseStatus 0 0 29 ChooseStatus 0 0 30 ChooseStatus 0 0 31 ChooseStatus 0 0 32 ChooseStatus 0 0 33 ChooseStatus 0 0 Toendof2016Toendof2015 7/7/2015 MonticelloFireReliefAssociation Wright FormSC-15 Page2 DeferredMemberInformation (fullyorpartiallyvested) Seeseparateinstructionsregardingcompletionofthebelowfields. Pleaseenterdatesinthisformat: TotalDeferredMemberLiabilities2015 134,419 TotalDeferredMemberLiabilities2016 141,140 1 Enterallinformationasitpertainstothismember. BenefitLevel Monthsof MemberName:atSeparation:3,275 ServiceArePaid Yes MinimumYearsRequiredtoVest:10 DOB:12/12/1964 DeferredInterestPaid ServiceDates:Entry:05/01/1993 Separation:11/01/2006 (Select"Yes"ifoffered.)Yes LOAsandBIS(inmonths):6 Vesting%:72 ReturntoServiceMember?(Select"Yes"ifapplicable.)IfInterestisPaid,ChooseType: TotalService:Years:13 Months(ifpaid):0 2015EstimatedLiability:40,436 PeriodInterestisPaid: 2016EstimatedLiability:42,458 Status:Deferred ForReliefRORupto5%,OSARORupto5%orBoardSetRORupto5%enterinterestratesbelow. 1984:%1989:%1994:%1999:%2004:%2010:5.00 % 1985:%1990:%1995:%2000:%2005:5.00 %2011:0.00 % 1986:%1991:%1996:%2001:%2006:5.00 %2012:5.00 % 1987:%1992:%1997:%2002:%2007:5.00 %2013:0.00 % 1988:%1993:%1998:%2003:%2008:0.00 %2014:2.50 % +RateofreturniscalculatedusingtheearningsprojectedonPage4ofthisform.2009:5.00 %2015:5.00 %+ 2 Enterallinformationasitpertainstothismember. BenefitLevel Monthsof MemberName:atSeparation:2,750 ServiceArePaid Yes MinimumYearsRequiredtoVest:10 DOB:04/26/1974 DeferredInterestPaid ServiceDates:Entry:01/15/1999 Separation:11/04/2011 (Select"Yes"ifoffered.)Yes LOAsandBIS(inmonths):0 Vesting%:68 ReturntoServiceMember?(Select"Yes"ifapplicable.)IfInterestisPaid,ChooseType: TotalService:Years:12 Months(ifpaid):9 2015EstimatedLiability:26,944 PeriodInterestisPaid: 2016EstimatedLiability:28,291 Status:Deferred ForReliefRORupto5%,OSARORupto5%orBoardSetRORupto5%enterinterestratesbelow. 1984:%1989:%1994:%1999:%2004:%2010:% 1985:%1990:%1995:%2000:%2005:%2011:0.00 % 1986:%1991:%1996:%2001:%2006:%2012:5.00 % 1987:%1992:%1997:%2002:%2007:%2013:0.00 % 1988:%1993:%1998:%2003:%2008:%2014:2.50 % +RateofreturniscalculatedusingtheearningsprojectedonPage4ofthisform.2009:%2015:5.00 %+ 7/7/2015 MonticelloFireReliefAssociation GeraldJ.Sonsteby FullCalendarMonths BoardsetRORupto5% BoardsetRORupto5% NickM.Dahlheimer FullCalendarMonths FormSC-15 Page2-Cont. 3 Enterallinformationasitpertainstothismember. BenefitLevel Monthsof MemberName:atSeparation:2,750 ServiceArePaid Yes MinimumYearsRequiredtoVest:10 DOB:07/30/1972 DeferredInterestPaid ServiceDates:Entry:04/15/2000 Separation:10/17/2011 (Select"Yes"ifoffered.)Yes LOAsandBIS(inmonths):12 Vesting%:60 ReturntoServiceMember?(Select"Yes"ifapplicable.)IfInterestisPaid,ChooseType: TotalService:Years:10 Months(ifpaid):6 2015EstimatedLiability:19,578 PeriodInterestisPaid: 2016EstimatedLiability:20,557 Status:Deferred ForReliefRORupto5%,OSARORupto5%orBoardSetRORupto5%enterinterestratesbelow. 1984:%1989:%1994:%1999:%2004:%2010:% 1985:%1990:%1995:%2000:%2005:%2011:0.00 % 1986:%1991:%1996:%2001:%2006:%2012:5.00 % 1987:%1992:%1997:%2002:%2007:%2013:0.00 % 1988:%1993:%1998:%2003:%2008:%2014:2.50 % +RateofreturniscalculatedusingtheearningsprojectedonPage4ofthisform.2009:%2015:5.00 %+ 4 Enterallinformationasitpertainstothismember. BenefitLevel Monthsof MemberName:atSeparation:2,850 ServiceArePaid Yes MinimumYearsRequiredtoVest:10 DOB:08/30/1972 DeferredInterestPaid ServiceDates:Entry:05/01/1996 Separation:12/01/2013 (Select"Yes"ifoffered.)Yes LOAsandBIS(inmonths):0 Vesting%:88 ReturntoServiceMember?(Select"Yes"ifapplicable.)IfInterestisPaid,ChooseType: TotalService:Years:17 Months(ifpaid):7 2015EstimatedLiability:47,461 PeriodInterestisPaid: 2016EstimatedLiability:49,834 Status:Deferred ForReliefRORupto5%,OSARORupto5%orBoardSetRORupto5%enterinterestratesbelow. 1984:%1989:%1994:%1999:%2004:%2010:% 1985:%1990:%1995:%2000:%2005:%2011:% 1986:%1991:%1996:%2001:%2006:%2012:% 1987:%1992:%1997:%2002:%2007:%2013:0.00 % 1988:%1993:%1998:%2003:%2008:%2014:2.50 % +RateofreturniscalculatedusingtheearningsprojectedonPage4ofthisform.2009:%2015:5.00 %+ MonticelloFireReliefAssociation TimW.Ackerman LukeG.Dahlheimer BoardsetRORupto5% FullCalendarMonths BoardsetRORupto5% FullCalendarMonths FormSC-15 MonticelloFireReliefAssociation Page3 UnpaidInstallments Enterherethenameofeachmemberwhohasbeenpaidportionsofhispensionbenefitandwhostillhas outstandingliabilities.Enterdatesinthisformat:7/7/2015 Birth Entry Separation Amount 2015Estimated 2016Estimated Name Status Date Date Date PreviouslyPaid Liability Liability UnpaidInstallment UnpaidInstallment UnpaidInstallment UnpaidInstallment UnpaidInstallment UnpaidInstallment UnpaidInstallment UnpaidInstallment UnpaidInstallment UnpaidInstallment Totals 0 0 FormSC-15 Page4 CalculationofNormalCost TotalActiveMemberLiabilities TotalDeferredMemberLiabilities TotalUnpaidInstallments GrandTotalSpecialFundLiability A.937,441B.1,019,666 NormalCost (CellBminusCellA)C.82,225 ProjectionofNetAssetsforYearEndingDecember31,2015 SpecialFundAssetsatDecember31,2014(RF-14endingassets)1 1,053,739 ProjectedIncomefor2015 FireStateAid (2014firestateaidof$87,110maybeincreasedbyupto3.5%)D.90,159 SupplementalStateAid (actual2014supplementalstateaid)E.21,076 Municipal/IndependentFireDept.Contributions F. Interest/Dividends G.20,000 Appreciation/(Depreciation)H.30,000 MemberDues I. OtherRevenues J. TotalProjectedIncomefor2015(AddLinesDthroughJ)2 161,235 ProjectedExpensesfor2015 ServicePensions K.87,800 MemberNames: OtherBenefits L. AdministrativeExpenses M.3,512 TotalProjectedExpensesfor2015(AddLinesJthroughM)3 91,312 ProjectedNetAssetsatDecember31,2015(AddLines1and2,subtractLine3)4 1,123,662 ProjectionofSurplusor(Deficit)asofDecember31,2015 ProjectedAssets (Line4)5 1,123,662 2015AccruedLiability(Page4,cellA)6 937,441 Surplusor(Deficit)(Line5minusLine6)7 186,221 MonticelloFireReliefAssociation 2015 2016 878,526 141,140 0 MarcSimpson(87,800) 803,022 134,419 0 FormSC-15 Page4-Cont. CalculationofRequiredContribution YearIncurred 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Totals NormalCost (Page4,cellC)8 82,225 ProjectedAdministrativeExpense Enter2014AdminExphere:9 3,393 3,512 AmortizationofDeficit (TotalofOriginalAmountcolumnx0.10)10 0 10%ofSurplus (Line7x0.10)11 18,622 FireandSupplementalStateAid 12 111,235 MemberDues 13 0 5%ofProjectedAssetsatDecember31,2015(Line4x0.05)14 56,183 15 0 Norequiredcontributionduein2016. OriginalAmountOriginalAmount DeficitInformation-Original DeficitInformation-Adjusted AmountRetired AmountLeft MonticelloFireReliefAssociation AmountRetired asof12/31/2015 toRetire1/1/2016asof12/31/2014 38,925 RequiredContribution (AddLines8,9and10,subtractLines11,12,13and14.Ifnegative,zeroisdisplayed.) 38,925 38,925 38,925 FormSC-15 MonticelloFireReliefAssociation Page5 SignatureofPresident FirstName LastName Date SignatureofSecretary FirstName LastName Date SignatureofTreasurer FirstName LastName Date Iamthemunicipalclerkof /secretaryofthe independentnonprofit FirstName LastName Date BusinessTelephone SignatureofMunicipalClerk/Secretaryofindependentnonprofit firefightingcorporation ,thecompletedScheduleFormfromtheMonticelloFireReliefAssociation. *Seetheforminstructionsforadditionalinformationaboutcertificationrequirements. firefightingcorporation.Ireceivedon MunicipalClerk/IndependentSecretaryCertification* Pleaseprovidethetelephonenumbersfortheworklocation(s)atwhichyouconductreliefassociationbusiness. THISCONTACTINFORMATIONISPUBLIC;ITWILLBEAVAILABLETOANYONEONREQUEST. IhavereviewedLine15oftheScheduleForm.IfLine15showsarequiredcontribution,IcertifythatIwilladvisethegoverningmunicipalbodyortheindependentnonprofit firefightingcorporationofanyrequiredcontributionatitsnextregularlyscheduledmeeting. ThisScheduleFormmustbefullycompleted,certifiedbythereliefassociationofficers,forwardedtothemunicipalclerk/independentsecretaryonorbeforeAugust 1,2015,andsubmittedtotheOfficeoftheStateAuditortobeeligibleforFireStateAid. OfficerCertification We,theofficersoftheMonticelloFireReliefAssociation,certifythatthisScheduleFormwaspreparedunderMinn.Stat.§424A.092andthattheannualbenefitlevelof $3,300peryearofservicewasestablishedaccordingtotheaverageamountofavailablefinancing. WefurthercertifythatbasedonthefinancialrequirementsoftheReliefAssociation'sSpecialFundforthe2015calendaryear,therequired2016contributionis$0.Ifthe bylawsoftheReliefAssociationchangedin2015,wehaveattachedacopyoftheamendmentorupdatedbylaws.Wehavealsoenclosedacopyofthemunicipal/board ratificationofthisamendmentifrequiredunderMinn.Stat.§424A.092,subd.6. CouncilAgenda:07/13/15 1 4A.Considerationofacceptingthe2014FinancialAuditreport (WO) A.REFERENCEANDBACKGROUND: Inkeepingwithoperationoftransparentorganizationstrustedwithproperlymanaging publicdollars,allcitiesarerequiredtohaveaprivatethirdpartyconductanannualaudit ofitsfinancialstatements.TheauditfirmofMalloy,Montague,Karnowski,Radosevich &Co.,P.A.(MMKR)conductedtheaudit,whichisthefifthyearforthefirmauditing theCity.InadditiontheCity’s2013ComprehensiveAnnualFinancialReport(CAFR) forthefifthtimereceivedtheGovernmentFinanceOfficersAssociation’s(GFOA) CertificateofAchievementforExcellenceinFinancialReportingandthe2014CAFRis inthesameformatsostaffcanapplyforthisawardonceagain. AllFinanceDepartmentpersonnelcontributedtotheauditprocess,withtheAssistant FinanceDirectorplayingacritical role. AgaintheCity’sCAFRwaspreparedinaformattoreceiveGFOA’sCertificateof AchievementforExcellenceinFinancialReporting.Byhavingthereportinthisformat, theCity’sreportcanbeeasilycomparedtoothercities’financialreportsfromaroundthe countryandcouldhelptheCityachieveabetterbondrating. JimEichten,PrincipalofMMKR,willpresentasummaryoftheirfindingsand summarizethehighlightsoftheCity’s2014CAFR. Theinformationpresentedattheworkshopandcouncilmeetingwillbeavailableon-line atthecity’swebsiteunderCityServices–Finance.Noextracopieswillbeavailablefor distribution. A1.BudgetImpact:Acceptanceoftheauditreportresultsinnocosts. A2.StaffWorkloadImpact:Prepareagendaitemandposttowebsite. B.ALTERNATIVEACTIONS: 1.Motiontoacceptthe2014FinancialAuditreport. 2.Motiontonotacceptthe2014AuditReportatthistime. C.STAFFRECOMMENDATION: ThecitystaffsupportsAlternative#1.TheCityAdministratorandFinanceDirector wouldliketoalsocommendtheworkoftheFinanceDepartmentstaffinthis accomplishment.Also,thescopeofanauditgoesbeyondtheFinanceDepartmentand includesotherscrutinyofoperationsaffectingallcitydepartments.Forinstance, biddingprocedures,contractadministration,employeereimbursements,andother processesarereviewedbytheauditorsinaccordancewithstatestatutes. CouncilAgenda:07/13/15 2 D.SUPPORTINGDATA: A.2014ComprehensiveAnnualFinancialReport B.SpecialPurposeAuditReport C.ManagementLetter (Thesearethebounddocumentsincludedinyourcouncilagendabinder) CITY OF MONTICELLO,MINNESOTA ComprehensiveAnnualFinancialReport FORTHEFISCALYEARENDEDDECEMBER31,2014 CityofMonticello WrightCounty,Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT YEARENDEDDECEMBER31,2014 Preparedby THE“FINANCETEAM” JulieCheney,FinanceAssistant RaeLynnCooks,Payroll-FinanceClerk DebbieDavidson,FinanceClerk PatKovich,UtilityBillingSpecialist AngieMcIntire,AssistantFinanceDirector WayneW.Oberg,FinanceDirector CITYOFMONTICELLO ComprehensiveAnnualFinancialReport TableofContents December31,2014 INTRODUCTORYSECTION Page LetterofTransmittal 1 GFOACertificateofAchievementforExcellenceinFinancialReporting 4 OrganizationChart 5 DirectoryofOfficials 6 FINANCIALSECTION IndependentAuditor'sReport 7 Management'sDiscussionandAnalysis 9 BasicFinancialStatements Government-wideFinancialStatements StatementofNetPosition 19 StatementofActivities 21 FundFinancialStatements BalanceSheet-GovernmentalFunds 22 ReconciliationoftheGovernmentalFundsBalanceSheettotheStatementofNetPosition 23 StatementofRevenue,ExpendituresandChangesinFundBalances-GovernmentalFunds 24 ReconciliationoftheStatementofRevenues,ExpendituresandChangesinFundBalancesofGovernmentalFundsto theStatementofActivities 25 StatementofNetPosition-ProprietaryFunds 26 StatementofRevenues,ExpensesandChangesinNetPosition-ProprietaryFunds 29 StatementofCashFlows-ProprietaryFunds 30 NotestotheFinancialStatements 32 RequiredSupplementaryInformation SchedulesofFundingProgress 53 ScheduleofRevenues,ExpendituresandChangesinFundBalance-BudgetandActual-GeneralFund 54 ScheduleofRevenues,ExpendituresandChangesinFundBalance-BudgetandActual-CommunityCenterFund 56 ScheduleofRevenues,ExpendituresandChangesinFundBalance-BudgetandActual-EconomicDevelopmentAuthorityFund 57 NotestotheRequiredSupplementryInformation 58 CombiningIndividualFundStatements NonmajorGovernmentalFunds CombiningBalanceSheet 59 CombiningStatementofRevenues,ExpendituresandChangesinFundBalances 60 InternalServiceFunds CombiningStatementofNetPosition 61 CombiningStatementofRevenues,ExpensesandChangesinNetPosition 62 CombiningStatementofCashFlows 63 (continued) I CITYOFMONTICELLO ComprehensiveAnnualFinancialReport TableofContents December31,2014 (continued) Page OtherSupplementrySchedules ScheduleofAssets,Liabilities,DeferredInflowsofResources,andFundBalances-DebtServiceActivities 65 ScheduleofRevenues,ExpendituresandOtherFinancingSources(Uses)-DebtServiceActivities 66 ScheduleofRevenues(Sources)andExpenditurres(Uses)-GeneralFund 67 STATISTICALSECTION Financialtrends NetPositionbyComponent-LastTenFiscalYears 71 ChangesinNetPosition-LastTenFiscalyears 72 FundBalancesofGovernmentalFunds-LastTenFiscalYears 74 ChangesinFundBalancesofGovernmentalFunds-LastTenFiscalYears 75 GovernmentalFundsTaxRevenuesbySource-LastTenFiscalYears(modifiedaccrualbasis)76 GeneralGovernmentalTaxRevenuesbySource-Last10FiscalYears(accrualbasis)77 Revenuecapacity TaxCapacityValueandEstimatedMarketValueofTaxableProperty-LastTenFiscalYears 78 PropertyTaxRates-AllDirectandOverlappingGovernments-LastTenFiscalYears 79 PropertyTaxLeviesandCollections-LastTenFiscalYears 80 PrincipalPropertyTaxpayers-CurrentYearandNineYearsAgo 81 WaterSoldbyCustomerType-LastTenFiscalYears 82 WaterandSewageUtilityRates-LastTenFiscalYears 83 Debtcapacity RatiosofOutstandingDebtbyType-LastTenFiscalYears 84 RatiosofNetGeneralObligationBondedDebtOutstanding-LastTenFiscalYears 85 LegalDebtMarginInformation-LastTenFiscalYears 86 ComputationofDirectandOverlappingDebt 87 ScheduleofRevenueBondCoverage-LastTwoFiscalYears 88 Economicanddemographicinformation Demographic&EconomicStatistics-LastTenFiscalYears 89 PrincipalEmployers-CurrentYearandNineYearsAgo 90 Operatinginformation CityGovernmentEmployeesbyFunction/Program-LastTenFiscalYears 91 OperatingIndicatorsbyFunction-LastTenFiscalYears 92 CapitalAssetsStatisticsbyFunction-LastTenFiscalYears 94 II INTRODUCTORY SECTION LetterofTransmittalCITYOFMONTICELLO FinanceDepartment June25,2015 TotheHonorableMayor,MembersoftheCityCouncil,andtheCitizensof theCityofMonticello: IampleasedtopresenttheComprehensiveAnnualFinancialReport (CAFR)oftheCityofMonticello,Minnesota(thecity)forthefiscalyear endedDecember31,2014.Responsibilityforboththeaccuracyofthedata andthecompletenessandfairnessofthepresentation,includingall disclosures,restswiththecity.Tothebestofourknowledgeandbelief,the encloseddataisaccurate,inallmaterialrespects,andisreportedina mannerdesignedtopresentfairlythefinancialpositionandresultsof operationsofthevariousfundsofthecity.Alldisclosuresnecessaryto enablethereadertogainanunderstandingofthecity’sfinancialactivities havebeenincluded. Managementassumesfullresponsibilityforthecompletenessandreliability oftheinformationcontainedinthisreport,baseduponacomprehensive frameworkofinternalcontrolthatithasestablishedforthispurpose. Becausethecostofinternalcontrolshouldnotexceedanticipatedbenefits, theobjectiveistoprovidereasonable,ratherthanabsolute,assurancethat thefinancialstatementsarefreeofanymaterialmisstatements. Thecity’sfinancialstatementshavebeenauditedbyMalloy,Montague, Karnowski,Radosevich&Co.,P.A.(MMKR),afirmoflicensedcertified publicaccountants.Thegoaloftheindependentauditwastoprovide reasonableassurancethatthefinancialstatementsofthecityforthefiscal yearendedDecember31,2014arefreeofmaterialmisstatements.The independentauditinvolvedexamining,onatestbasis,evidencesupporting theamountsanddisclosuresinthefinancialstatements,assessingthe accountingprinciplesusedandsignificantestimatesmadebymanagement, andevaluatingtheoverallfinancialstatementpresentation.Theindependent auditorconcluded,basedupontheaudit,thattherewasareasonablebasis forrenderinganunmodifiedopinionthatthecity’sfinancialstatementsfor thefiscalyearendedDecember31,2014,arefairlypresentedinconformity withaccountingprinciplesgenerallyacceptedintheUnitedStatesof America.Theindependentauditor’sreportispresentedasthefirst componentofthefinancialsectionofthisreport. ThepreparationofthisCAFRisarequirementofstatelaw.Also,theCAFR isrequiredbythebondratingagenciesbeforetheywillratethecity’sbonds. Thereportcanbeusedbythecitycouncilandthecitizensofthecitytogain abetterunderstandingofthefinancialconditionofthecity. AccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica requirethatmanagementprovideanarrativeintroduction,overview,and analysistoaccompanythebasicfinancialstatementsintheformof Management’sDiscussionandAnalysis(MD&A).Thisletteroftransmittalis designedtocomplementtheMD&Aandshouldbereadinconjunctionwith it.Thecity’sMD&Acanbefoundimmediatelyfollowingthereportofthe auditors. PROFILEOFTHECITY ThecityissituatedinaprimelocationonInterstate94betweencitiesof Minneapolis/St.PaulandSt.Cloud.Thecityhasexperiencedtremendous growthwithinthelast15yearsintheresidential,commercial,office,and retailsectors.Thecityisarapidlygrowing,freestandingurbanfringe communityencompassingapproximately5,000acresandapopulation nearing13,000.ThecityishometooneofMinnesota’stwonuclearpower plants,bothownedbyXcelEnergy,Inc.(NYSE:XEL).Withasmallcarbon footprint,theXcelplantisalsothecity’slargestemployerandproperty taxpayer.Additionally,Monticello’sbusinessfriendlyenvironmentprovidesa homeforCargillKitchenSolutions.Theprivately-owned,agri-giantisthe city’slargestcustomerofwaterandsewageutilityservices. Thecitywasfoundedbysecond-generationAmericanswhomigratedwest inthemid-1800s.Earlysettlersfoundthegentlyslopingbanksandshallow riverlevelsoftheMississippiRivermadealogicalplaceforarivercrossing. Incorporatedin1856,thecitygrewquicklyduringtheearlysettlementyears andthenleveledtoapopulationofabout1,300.Itwasthisoriginal settlementthatbecamethecorecityandsurvivestodayasdowntown Monticello. Thecityoperatesunderthe“OptionalPlanA”formofgovernmentasdefined inMinnesotaStatutes.Underthisplan,thegovernmentofthecityisdirected byacitycouncilcomposedofanelectedmayorandfourelectedcouncil 1 LetterofTransmittalCITYOFMONTICELLO members.Thecitycouncilexerciseslegislativeauthorityanddeterminesall mattersofpolicy.Thecitycouncilappointspersonnelresponsibleforthe properadministrationofallaffairsrelatingtothecity.Councilmembersserve four-yearterms,withtwomemberselectedeverytwoyears.Themayoris electedforatwo-yearterm.Themayorandmembersofthecitycouncilare electedatlarge. Thecityprovidesafullrangeofservices:theconstructionandmaintenance ofstreetsandotherinfrastructure;snowremoval;parkandcemetery maintenance;recreationalandculturalactivities;water,sewer,surface water,residentialgarbage,andrecyclingsystems;communitydevelopment, buildinginspection,planning,police,fire,andliquorstoreoperations;acity- runfiberopticsystemandcommunitycenter;andgeneralgovernment operations,includingadministration,finance/accounting,information systems,communityinformation,andgeneralgovernmentbuildings. ThecitycouncilisrequiredtoadoptafinalbudgetbylateDecemberforthe subsequentyear.Thebudgetispreparedbyfund,function(e.g.public works),anddepartment(e.g.streetsandalleys).Transfersofappropriations betweenfundsrequiretheapprovalofthecitycouncil.Thelegallevelof budgetarycontrolisthedepartmentlevelintheGeneralFundandfundlevel inallotherfunds.Budgetamendmentsrequirecitycouncilapproval. FINANCIALPLANNINGANDTHELOCALECONOMY Thecityisrecoveringslowlyfromrecenteconomicwoesthathaveaffected othercommunitiesinWrightCountyandthroughoutthestateofMinnesota. Thenuclearpowerplantprovidesthecitywitharelativelystabletaxand employmentbase.Duringtheeconomicdownturn,newcommercial developmentcametovirtualstandstillandtodaygrowthremainsanemic. However,thecitylostveryfewofitslocalbusinesses,althoughsome reducedtheirworkforceandscaledbackoperations.Therapidresidential growthstartingnearlyadecadeagohasslowedsignificantlybutthecitywas nothitwithalargenumberofforeclosedhomes. Inthepast,thestateofMinnesotahasreducedlocalgovernmentaid(LGA) andthemarketvaluehomesteadcredit(MVHC)tocitiesandcountiesasa waytobalanceitsownbudget.SincethecitydoesnotreceiveLGA,the city’sfinancesarerelativelyinsulatedfromthestate’sbudgetproblems.In 2012,thestateeliminatedtheMVHCandreplaceditwithaMarketValue Exclusionprogram,whichthecityincorporatedintoits2014budget.The newprogramshiftedmoreofthetaxburdentononresidentialproperty taxpayers. Theeconomyandhousingmarkethasalsoaffectedcityrevenuesfor buildingpermits.Thecityissued1,412buildingpermitsin2005withatotal valuationof$68,069,444.In2014,thecityissued721permitswithatotal valuationof$19,714,896.Inquiries,fieldedbytheBuildingDepartment, indicate2015residentialhousingpermits(new)willcompetewith2014 totals. Fortunately,thecitydoesnotrelyonthestateasamajorfundingsource (LGA).Inaddition,thecityhasbudgetedconservativelyovertheyears, resultinginverymodestgrowthinthepropertytaxlevy.Toassistexternal stakeholders,thecityisexploringvariouswaystobetterrepresentits financialposition,suchastheeliminationofallinterfundloans/receivablesin 2012.Otherinitiativesincludeconsolidatingfundswithsimilarpurposes, distributingunallocatedexpensesandaggregatingsimilarcostsfor distributionassingleamountstoeachbudgetunit(i.e.ITServices–Internal ServicesFund)in2013. MAJORINITIATIVES Thecityhasthreemajorongoinginitiativesin2014.Thefirstongoing initiativeistherevitalizationofitshistoricdowntown.Thedowntownisthe oldestpartofthecityandmanyofthebuildingsareinneedofmaintenance. 2 LetterofTransmittalCITYOFMONTICELLO Inaddition,theamountoftrafficonStateHighway25andCountyRoad75 makesbothvehicleandpedestriantrafficdifficulttomovefromoneareaof thedowntowntoanother.Becauseoftheseissues,anumberofthestore frontsareunoccupied.Toaddresstheseissues,thecitycompletedan EmbracingDowntownMonticelloinitiativewiththegoaltoidentifyneeded improvementsandenhancements,whichwillonceagainmakethe downtownareaavibrantshoppingandresidentdestination.Thechallenge movingforwardwillbetheimplementationoftheplanandcreating developmentopportunitieswithinthedowntownareafornewandexisting businesses. ThesecondongoinginitiativeisthejointpurchasewithWrightCountyof BertramChainofLakesproperties.ThecityandWrightCountyhavealready acquired750acresofthe1,200acresite.The1,200acresiteincludesfour pristinelakesandwoodlands,whichwhenpurchasedwillbecomearegional park.WrightCountyandthecityobtainedmatchinggrantfundsfromthe statetopurchaseadditionalacreagein2014. Stabilizingtheoperationsofthecityfiberopticsoperationsisthelast initiative.Afterasuccessionofgeneralmanagersandsettlementofthe bondholderclaims,thecityispositionedtomoveforwardwithaleaner,less expensivetelecommunicationsutility. INTERNALCONTROL Themanagementofthecityisresponsibleforestablishingandmaintaining internalcontroldesignedtoensurethattheassetsofthecityareprotected fromloss,theft,ormisuseandthatadequateaccountingdataiscompiledto allowforthepreparationoffinancialstatementsinconformitywith accountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica. Thecity’sinternalcontrolsaredesignedtoprovidereasonable,butnot absoluteassurancethattheseobjectivesaremet.Theconceptof reasonableassurancerecognizesthat:1)thecostofacontrolshouldnot exceedthebenefitslikelytobederived,and2)thevaluationofcostand benefitrequiresestimatesandjudgmentsbymanagement.Thecity’s internalcontrolsaresubjecttoperiodicevaluationbymanagementandthe FinanceDepartmentstaffofthecity. BUDGETINGCONTROLS Inaddition,thecitymaintainsbudgetarycontrols.Theobjectiveofthese budgetarycontrolsistoassurecompliancewithlegalprovisionsembodiedin theannualappropriatedbudgetapprovedbythecitycouncil.Activitiesofthe GeneralFundareincludedintheannualappropriatedbudget.Thelevelof budgetarycontrol(thatis,thelevelatwhichexpenditurescannotlegally exceedtheappropriatedamount)isestablishedbydepartmentwithinthe GeneralFund.Thecitycouncilalsoadoptsafive-yearCapitalImprovement Programasafinancialplanningdocumentforitscapitalprojectand enterprisefunds.Asdemonstratedbythestatementsandschedules includedinthefinancialsectionofthisreport,thecitycontinuestomeetits responsibilityforsoundfinancialmanagement. ACKNOWLEDGEMENTS TheGovernmentFinanceOfficersAssociationoftheUnitedStatesand Canada(GFOA)awardedaCertificateofAchievementforExcellencein FinancialReportingtothecityforitsCAFRforthefiscalyearended December31,2013.Thiswasthefourthyearthatthecityhasachievedthis prestigiousaward.InordertobeawardedaCertificateofAchievement,the cityhadtopublishaneasilyreadableandefficientlyorganizedCAFR.This reportmustsatisfybothaccountingprinciplesgenerallyacceptedinthe UnitedStatesofAmericaandapplicablelegalrequirements. AcertificateofAchievementisvalidforaperiodofoneyearonly.Webelieve thatourcurrentCAFRcontinuestomeettheCertificateofAchievement Program’srequirementsandwearesubmittingittotheGFOAtodetermine itseligibilityforanothercertificate. The2014CAFRmeetsthehighestprofessionalstandardsandwas preparedinatimelyandcosteffectivemanner.Thepreparationofthisreport wouldnothavebeenpossiblewithouttheefficientanddedicatedserviceof theentirestaffofthefinancedepartment,especiallyAssistantFinance DirectorAngieMcIntire,andthroughthehelpfulguidanceandassistance fromourauditingfirm,MMKR.Iwishtoexpressmyappreciationtoall membersofthedepartmentwhoassistedandcontributedtothepreparation ofthisreport.Creditalsomustbegiventothemayorandcitycouncilfor theirunfailingsupportformaintainingthehigheststandardsof professionalisminthemanagementofthecity’sfinances. Respectfullysubmitted, WayneW.Oberg,MBA,CPA FinanceDirector 3 CertificateofAchievement CITYOFMONTICELLO TheGovernmentFinanceOfficersAssociationoftheUnitedStates andCanada(GFOA)awardedaCertificateforExcellencein FinancialReportingtotheCityofMonticello,Minnesotaforits ComprehensiveAnnualFinancialReportforthefiscalyearended December31,2013.TheCertificateofAchievementisa prestigiousnationalawardrecognizingconformancewiththe higheststandardsforpreparationofstateandlocalgovernment reports. InordertobeawardedaCertificateofAchievement,a governmentalunitmustpublishaneasilyreadableandefficiently organizedComprehensiveAnnualFinancialReport,whose contentsconformtoprogramstandards.Suchreportsmustsatisfy bothgenerallyacceptedaccountingprinciplesandapplicablelegal requirements. ACertificateofAchievementisvalidforaperiodofoneyearonly. WebelieveourcurrentreportcontinuestoconformtoCertificateof Achievementprogramrequirements,andwearesubmittingitto theGFOA. GovernmentFinanceOfficersAssociation Certificateof Achievement forExcellence inFinancial Reporting Presentedto CityofMonticello Minnesota ForitsComprehensiveAnnual FinancialReport FortheFiscalYearEnded December31,2013 ExecutiveDirector/CEO 4 OrganizationChart CITYOFMONTICELLO Citizensof Monticello City Commissions& Council AdvisoryBoards City Administrator Human Finance Community City Public Community Deputy Fire FiberNet Contracted Resource Director Development Engineer Works Center City Chief Operation Services Manager Director Director Director Clerk Finance Economic Construction Streets Community Elections Fire FiberNet City Department Development Inspectors Department Center Department Sales Attorney Data Building Consulting Parks FiberNet Sheriffs Processing Inspections Engineer Department Office Department Audit Receptionist Utilities FiberNet Animal Department Plant Control Operations Department Consulting Refuse County ofMotor Planner Collection Assessor Vehicles Liquor Operations 5 DirectoryofOfficialsCITYOFMONTICELLO MAYOR&CITYCOUNCIL Position NameTermExpires Mayor.......................................................................................ClintHerbst 12/31/2014 Council....................................................................................LloydHilgart 12/31/2014 Council...................................................................................TomPerrault 12/31/2016 Council..................................................................................GlenPosusta 12/31/2016 Council...................................................................................BrianStumpf 12/31/2014 CITYSTAFF CityAdministrator.......................................................................JeffO’Neill FinanceDirector....................................................................WayneOberg CommunityDevelopmentDirector.................................AngelaSchumann PublicWorksDirector...........................................................WayneOberg EconomicDevelopmentDirector...............................................JeffO’Neill HumanResourceManager.....................................................TracyErgen LiquorStoreManager......................................................RandallJohnsen DMVManager..................................................................CarolynGranger UtilitySuperintendent.............................................................MattTheisen StreetSuperintendent.............................................................TomMoores ParksSuperintendent.............................................................TomPawelk CommunityCenterDirector...............................................KathleenBaltos BuildingOfficial...........................................................RonHackenmueller FireChief...................................................................................DarylGilles CommunicationsCoordinator............................................RachelLeonard PROFESSIONALSERVICES CityAttorney..........................................................CampbellKnutson,P.A. CityEngineer.................................................................WSB&Associates LawEnforcement.......................................WrightCountySherriff’sOffice FinancialAdvisor.................................................NorthlandSecurities,Inc. 6 FINANCIAL SECTION Principals Thomas M. Montague, CPA Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA IN D E P E N D E N T A U D I T O R ’ S R E P O R T To t h e C i t y C o u n c i l a n d M a n a g e m e n t Ci t y o f M o n t i c e l l o , M i n n e s o t a REP O R T O N T H E FIN A N C I A L STA T E M E N T S We h a v e a u d i t e d t h e f i n a n c i a l s t a t e m e n t s o f t h e g o v e r n m e n t a l a c t i v i t i e s , t h e bu s i n e s s - t y p e a c t i v i t i e s , e a c h m a j o r f u n d , a n d t h e a g g r e g a t e r e m a i n i n g f u n d in f o r m a t i o n o f t h e C i t y o f M o n t i c e l l o , M i n n e s o t a ( t h e C i t y ) a s o f a n d f o r th e y e a r e n d e d D e c e m b e r 3 1 , 2 0 1 4 , a n d th e r e l a t e d n o t e s t o t h e f i n a n c i a l st a t e m e n t s , w h i c h c o l l e c t i v e l y c o m p ri s e t h e C i t y ’ s b a s i c f i n a n c i a l st a t e m e n t s a s l i s t e d i n t h e t a b l e o f c o n t e n t s . MAN A G E M E N T ’S RES P O N S I B I L I T Y F O R T H E FIN A N C I A L STA T E M E N T S Ma n a g e m e n t i s r e s p o n s i b l e f o r t h e pr e p a r a t i o n a n d f a i r p r e s e n t a t i o n o f th e s e f i n a n c i a l s t a t e m e n t s i n a c c o rd a n c e w i t h a c c o u n t i n g p r i n c i p l e s ge n e r a l l y a c c e p t e d i n t h e U n i t e d S t a t es o f A m e r i c a ; t h i s i n c l u d e s t h e de s i g n , i m p l e m e n t a t i o n , a n d m a i n t e n a n c e of i n t e r n a l c o n t r o l r e l e v a n t t o t h e pr e p a r a t i o n a n d f a i r p r e s e n t a t i o n o f f i n a n c i a l s t a t e m e n t s t h a t a r e f r e e f r o m ma t e r i a l m i s s t a t e m e n t , w h e t h e r d u e t o f r a u d o r e r r o r . AUD I T O R ’S RES P O N S I B I L I T Y Ou r r e s p o n s i b i l i t y i s t o e x p r e s s o p i n i o n s o n t h e s e f i n a n c i a l s t a t e m e n t s ba s e d o n o u r a u d i t . W e c o n d u c t e d o u r a u d i t i n a c c o r d a n c e w i t h a u d i t i n g st a n d a r d s g e n e r a l l y a c c e p t e d i n t h e U n i t e d S t a t e s o f A m e r i c a a n d t h e st a n d a r d s a p p l i c a b l e t o f i n a nc i a l a u d i t s c o n t a i n e d i n Go v e r n m e n t A u d i t i n g St a n d a r d s , i s s u e d b y t h e C o m p t r o l l e r G e n e r a l o f t h e U n i t e d S t a t e s . T h o s e st a n d a r d s r e q u i r e t h a t w e p l a n a n d pe r f o r m t h e a u d i t t o o b t a i n r e a s o n a b l e as s u r a n c e a b o u t w h e t h e r t h e f i n a n c i a l st a t e m e n t s a r e f r e e f r o m m a t e r i a l mi s s t a t e m e n t . An a u d i t i n v o l v e s p e r f o r m i n g p r o c e d u r e s t o o b t a i n a u d i t e v i d e n c e a b o u t th e a m o u n t s a n d d i s c l o s u r e s i n t h e f i n a n c i a l s t a t e m e n t s . T h e p r o c e d u r e s se l e c t e d d e p e n d o n t h e a u d i t o r ’ s j u d g m e n t , i n c l u d i n g t h e a s s e s s m e n t o f t h e ri s k s o f m a t e r i a l m i s s t a t e m e n t o f t h e f i n a n c i a l s t a t e m e n t s , w h e t h e r d u e t o fr a u d o r e r r o r . I n m a k i n g t h o s e r i s k a s s e s s m e n t s , t h e a u d i t o r c o n s i d e r s in t e r n a l c o n t r o l r e l e v a n t t o t h e C i t y ’s p r e p a r a t i o n a n d f a i r p r e s e n t a t i o n o f th e f i n a n c i a l s t a t e m e n t s i n o r d e r t o d e s i g n a u d i t p r o c e d u r e s t h a t a r e ap p r o p r i a t e i n t h e c i r c u m s t a n c e s , b u t n o t f o r t h e p u r p o s e o f e x p r e s s i n g a n op i n i o n o n t h e e f f e c t i v e n e s s o f t h e C i t y ’ s i n t e r n a l c o n t r o l . A c c o r d i n g l y , we e x p r e s s n o s u c h o p i n i o n . A n a u d i t a l s o i n c l u d e s e v a l u a t i n g t h e ap p r o p r i a t e n e s s o f a c c o u n t i n g p o l i c i e s u s e d a n d t h e r e a s o n a b l e n e s s o f si g n i f i c a n t a c c o u n t i n g e s t i m a t e s m a d e b y m a n a g e m e n t , a s w e l l a s ev a l u a t i n g t h e o v e r a l l p r e s e n t a t i o n o f t h e f i n a n c i a l s t a t e m e n t s . We b e l i e v e t h a t t h e a u d i t e v i d e n c e we h a v e o b t a i n e d i s s u f f i c i e n t a n d ap p r o p r i a t e t o p r o v i d e a b a s i s f o r o u r a u d i t o p i n i o n s . OPI N I O N S In o u r o p i n i o n , t h e f i n a n c i a l s t a t e m e n t s r e f e r r e d t o a b o v e p r e s e n t f a i r l y , i n (continued) 7 al l m a t e r i a l r e s p e c t s , t h e r e s p e c t i v e f i n a n c i a l p o s i t i o n o f t h e g o v e r n m e n t a l ac t i v i t i e s , t h e b u s i n e s s - t y p e a c t i v i t i e s , ea c h m a j o r f u n d , a n d t h e a g g r e g a t e re m a i n i n g f u n d i n f o r m a t i o n o f t h e C i t y a s o f D e c e m b e r 3 1 , 2 0 1 4 , a n d t h e re s p e c t i v e c h a n g e s i n f i n a n c i a l p o s i t i on a n d , w h e r e a p p l i c a b l e , c a s h f l o w s th e r e o f , f o r t h e y e a r t h e n e n d e d , in a c c o r d a n c e w i t h a c c o u n t i n g p r i n c i p l e s ge n e r a l l y a c c e p t e d i n t h e U n i t e d S t a t e s o f A m e r i c a . OTH E R MAT T E R S Re q u i r e d S u p p l e m e n t a r y I n f o r m a t i o n Ac c o u n t i n g p r i n c i p l e s g e n e r a l l y a c c e p t e d i n t h e U n i t e d S t a t e s o f A m e r i c a re q u i r e t h a t t h e M a n a g e m e n t ’ s D i s c u s s i o n a n d A n a l y s i s , t h e S c h e d u l e s o f Fu n d i n g P r o g r e s s f o r t h e M o n t i c e l l o F i r e D e p a r t m e n t R e l i e f A s s o c i a t i o n , th e C i t y o f M o n t i c e l l o O t h e r P o s t - E m p l o y m e n t B e n e f i t s P l a n , a n d t h e Bu d g e t a r y C o m p a r i s o n S c h e d u l e s , a s l i s t e d i n t h e t a b l e o f c o n t e n t s , b e pr e s e n t e d t o s u p p l e m e n t t h e b a s i c f i n a n c ia l s t a t e m e n t s . S u c h i n f o r m a t i o n , al t h o u g h n o t a p a r t o f t h e b a s i c f i n a n c i a l s t a t e m e n t s , i s r e q u i r e d b y t h e Go v e r n m e n t a l A c c o u n t i n g S t a n d a r d s Bo a r d w h o c o n s i d e r s i t t o b e a n es s e n t i a l p a r t o f f i n a n c i a l r e p o r t i n g f o r p l a c i n g t h e b a s i c f i n a n c i a l st a t e m e n t s i n a n a p p r o p r i a t e o p e r a t i o n a l, e c o n o m i c , o r h i s t o r i c a l c o n t e x t . We h a v e a p p l i e d c e r t a i n l i m i t e d p r o ce d u r e s t o t h e r e q u i r e d s u p p l e m e n t a r y in f o r m a t i o n i n a c c o r d a n c e w i t h a u d i t i ng s t a n d a r d s g e n e r a l l y a c c e p t e d i n t h e Un i t e d S t a t e s o f A m e r i c a , w h i c h c o n s i s t e d o f i n q u i r i e s o f m a n a g e m e n t ab o u t t h e m e t h o d s o f p r e p a r i n g t h e i n f o r m a t i o n a n d c o m p a r i n g t h e in f o r m a t i o n f o r c o n s i s t e n c y w i t h m a n a ge m e n t ’ s r e s p o n s e s t o o u r i n q u i r i e s , th e b a s i c f i n a n c i a l s t a t e m e n t s , a n d ot h e r k n o w l e d g e w e o b t a i n e d d u r i n g o u r au d i t o f t h e b a s i c f i n a n c i a l s t a t e m e n t s . W e d o n o t e x p r e s s a n o p i n i o n o r pr o v i d e a n y a s s u r a n c e o n t h e i n f o r m at i o n b e c a u s e t h e l i m i t e d p r o c e d u r e s do n o t p r o v i d e u s w i t h s u f f i c i e n t e v i d e n c e t o e x p r e s s a n o p i n i o n o r p r o v i d e an y a s s u r a n c e . Ot h e r I n f o r m a t i o n Ou r a u d i t w a s c o n d u c t e d f o r t h e p u r p o s e o f f o r m i n g o p i n i o n s o n t h e fi n a n c i a l s t a t e m e n t s t h a t c o l l e c t i v e l y c o m p r i s e t h e C i t y ’ s b a s i c f i n a n c i a l st a t e m e n t s . T h e i n t r o d u c t o r y s e c t i o n , c o m b i n i n g a n d i n d i v i d u a l f u n d st a t e m e n t s , o t h e r s u p p l e m e n t a r y s c h e d u l e s , a n d s t a t i s t i c a l s e c t i o n , a s l i s t e d in t h e t a b l e o f c o n t e n t s , a r e p r e s e n t e d f o r p u r p o s e s o f a d d i t i o n a l a n a l y s i s an d a r e n o t r e q u i r e d p a r t s o f t h e b a s i c f i n a n c i a l s t a t e m e n t s . Th e c o m b i n i n g a n d i n d i v i d u a l f u n d s t a t e m e n t s a r e t h e r e s p o n s i b i l i t y o f ma n a g e m e n t a n d w e r e d e r i v e d f r o m a nd r e l a t e d i r e c t l y t o t h e u n d e r l y i n g ac c o u n t i n g a n d o t h e r r e c o r d s u s e d t o p r e p a r e t h e b a s i c f i n a n c i a l st a t e m e n t s . S u c h i n f o r m a t i o n h a s be e n s u b j e c t e d t o t h e a u d i t i n g pr o c e d u r e s a p p l i e d i n t h e a u d i t o f t h e b a s i c f i n a n c i a l s t a t e m e n t s a n d ce r t a i n a d d i t i o n a l p r o c e d u r e s , i n c l ud i n g c o m p a r i n g a n d r e c o n c i l i n g s u c h in f o r m a t i o n d i r e c t l y t o t h e u n d e r l y i n g a c c o u n t i n g a n d o t h e r r e c o r d s u s e d to p r e p a r e t h e b a s i c f i n a n c i a l s t a t em e n t s o r t o t h e b a s i c f i n a n c i a l st a t e m e n t s t h e m s e l v e s , a n d o t h e r a d d i t i o n a l p r o c e d u r e s i n a c c o r d a n c e w i t h au d i t i n g s t a n d a r d s g e n e r a l l y a c c e p t e d i n t h e U n i t e d S t a t e s o f A m e r i c a . I n ou r o p i n i o n , t h e c o m b i n i n g a n d i n d i v i d u a l f u n d s t a t e m e n t s a r e f a i r l y st a t e d , i n a l l m a t e r i a l r e s p e c t s , i n r e la t i o n t o t h e b a s i c f i n a n c i a l s t a t e m e n t s as a w h o l e . Th e i n t r o d u c t o r y s e c t i o n , o t h e r s u p p l e m e n t a r y s c h e d u l e s , a n d s t a t i s t i c a l se c t i o n h a v e n o t b e e n s u b j e c t e d t o t h e a u d i t i n g p r o c e d u r e s a p p l i e d i n t h e au d i t o f t h e b a s i c f i n a n c i a l s t a t e m e n t s a n d , a c c o r d i n g l y , w e d o n o t e x p r e s s an o p i n i o n o r p r o v i d e a n y a s s u r a n c e o n t h e m . OTH E R REP O R T I N G REQ U I R E D B Y GOV E R N M E N T AUDITING STA N D A R D S In a c c o r d a n c e w i t h Go v e r n m e n t A u d i t i n g S t a n d a r d s , we have also issued ou r r e p o r t d a t e d J u n e 2 5 , 20 1 5 o n o u r c o n s i d e r a t i o n o f t h e C i t y ’ s i n t e r n a l co n t r o l o v e r f i n a n c i a l r e p o r t i n g a n d o n ou r t e s t s o f i t s c o m p l i a n c e w i t h ce r t a i n p r o v i s i o n s o f l a w s , r e g u l a t i o n s , c o n t r a c t s , g r a n t a g r e e m e n t s , a n d ot h e r m a t t e r s . T h e p u r p o s e o f t h a t r e p o r t i s t o d e s c r i b e t h e s c o p e o f o u r te s t i n g o f i n t e r n a l c o n t r o l o v e r f i n a nc i a l r e p o r t i n g a n d c o m p l i a n c e a n d t h e re s u l t s o f t h a t t e s t i n g , a n d n o t t o pr o v i d e a n o p i n i o n o n i n t e r n a l c o n t r o l ov e r f i n a n c i a l r e p o r t i n g o r o n c o m p l i a n c e . Th a t r e p o r t i s a n i n t e g r a l p a r t o f an a u d i t p e r f o r m e d i n a c c o r d a n c e w i t h Go v e r n m e n t A u d i t i n g S t a n d a r d s in co n s i d e r i n g t h e C i t y ’ s i n t e r n a l co n t r o l o v e r f i n a n c i a l r e p o r t i n g a n d co m p l i a n c e . Mi n n e a p o l i s , M i n n e s o t a Ju n e 2 5 , 2 0 1 5 8 MANAGEMENT’S DISCUSSION &ANALYSIS Management’sDiscussionandAnalysisCITYOFMONTICELLO Management’sDiscussionandAnalysis AsmanagementoftheCityofMonticello,Minnesota(thecity),weoffer readersofthecity’sbasicfinancialstatementsthisnarrativeoverviewand analysisofthefinancialactivitiesofthecityforthefiscalyearended December31,2014.Weencouragereaderstoconsidertheinformation presentedhereinconjunctionwithadditionalinformationthatwehave furnishedinourletteroftransmittal,whichcanbefoundonpages 1-3 ofthis report. OverviewoftheBasicFinancialStatements Thediscussionandanalysisareintendedtoserveasanintroductiontothe city’sbasicfinancialstatements.Thecity’sbasicfinancialstatements comprisethreecomponents:1)government-widefinancialstatements,2)fund financialstatements,and3)notestothefinancialstatements.Thisreportalso containsothersupplementaryinformationinadditiontothebasicfinancial statementsthemselves. Government-WideFinancialStatements –Thegovernment-widefinancial statementsaredesignedtoprovidereaderswithabroadoverviewofthecity’s finances,inamannersimilartoprivatesectorbusinesses. TheStatementofNetPositionpresentsinformationonallofthecity’sassets andliabilities,withthedifferencebetweenthetworeportedasnetposition. Overtime,increasesordecreasesinnetpositionmayserveasauseful indicatorofwhetherthefinancialpositionofthecityisimprovingor deteriorating. TheStatementofActivitiespresentsinformationshowinghowthecity’snet positionchangedduringthemostrecentfiscalyear.Allchangesinnetposition arereportedassoonastheunderlyingeventgivingrisetothechangeoccurs, regardlessofthetimingofrelatedcashflows.Thus,revenuesandexpenses arereportedinthisstatementforsomeitemsthatwillonlyresultincashflows infuturefiscalperiods(delinquenttaxesandspecialassessments). Bothofthegovernment-widefinancialstatementsdistinguishfunctionsofthe citythatareprincipallysupportedbytaxesandintergovernmentalrevenue (governmentalactivities)fromotherfunctionsthatareintendedtorecoverall orasignificantportionoftheircoststhroughuserfeesandcharges(business- typeactivities).Thegovernmentalactivitiesprovidedbythecityinclude generalgovernment,publicsafety,publicworks,sanitation,transit,recreation andculture,andeconomicdevelopment.Business-typeactivitiesinclude water,sewage,liquor,deputyregistrar,andfiberopticsactivities. Thegovernment-widefinancialstatementsincludenotonlythecityitself (knownastheprimarygovernment),butalsotheEconomicDevelopment Authority(EDA).TheEDAisalegallyseparateentitywhichfunctions,in essence,asadepartmentofthecity,toprovideredevelopmentassistance throughtheadministrationofvariousprograms.Therefore,theEDAhasbeen includedasanintegralpartofthecity’sfinancialstatements. Thegovernment-widefinancialstatementscanbefoundonpages 19-21 of thisreport. FundFinancialStatements –Afundisagroupingofrelatedaccountsthatis usedtomaintaincontroloverresourcesthathavebeensegregatedforspecific activitiesorobjectives.Thecity,likeotherstateandlocalgovernments,uses fundaccountingtoensureanddemonstratecompliancewithfinance-related legalrequirements.Allofthefundsofthecitycanbedividedintotwo categories:governmentalfundsandproprietaryfunds. GovernmentalFunds –Governmentalfundsareusedtoaccountfor essentiallythesamefunctionsreportedasgovernmentalactivitiesinthe government-widefinancialstatements.However,unlikethegovernment-wide financialstatements,governmentalfundfinancialstatementsfocusonnear- terminflowsandoutflowsofspendableresources,aswellasthebalancesof COMPONENTSOF THEANNUALFINANICALREPORT Management’s Discussionand Analysis Basic Financial Statements Required Supplementary Information Government-wide Financial Statements Fund FinancialStatements Notestothe FinancialStatements Summary Detail 9 Management’sDiscussionandAnalysisCITYOFMONTICELLO spendableresourcesavailableattheendofthefiscalyear.Suchinformation maybeusefulinevaluatingagovernment’snear-termfinancingrequirements. Becausethefocusofgovernmentalfundsisnarrowerthanthatofthe government-widefinancialstatements,itisusefultocomparetheinformation presentedforgovernmentalfundswithsimilarinformationpresentedfor governmentalactivitiesinthegovernment-widefinancialstatements.Bydoing so,readersmaybetterunderstandthelong-termimpactofthegovernment’s near-termfinancingdecisions.BoththegovernmentalfundsBalanceSheet andStatementofRevenue,Expenditures,andChangesinFundBalances provideareconciliationtofacilitatethecomparisonbetweengovernmental fundsandgovernmentalactivities. Thecitymaintainsseveralindividualgovernmentalfunds.Informationis presentedseparatelyinthegovernmentalfundsBalanceSheetandinthe governmentalfundsStatementofRevenue,Expenditures,andChangesin FundBalancesfortheGeneralFund,CommunityCenterSpecialRevenue Fund,EDASpecialRevenueFund,DebtServiceFund,ParkandPathway DedicationCapitalProjectFund,andCapitalProjectsFund,allofwhichare consideredtobemajorfunds.Datafromtheremaininggovernmentalfunds arecombinedintoasingle,aggregatedpresentation.Individualfunddatafor eachofthesenonmajorgovernmentalfundsisprovidedintheformof combiningstatementselsewhereinthisreport. ThecityadoptsanannualbudgetforitsGeneralFundandmajorspecial revenuefunds.Abudgetarycomparisonschedulehasbeenprovidedforthe GeneralFundandmajorspecialrevenuefundstodemonstratecompliance withtheadoptedbudgets. Thegovernmentalfundfinancialstatementscanbefoundonpages 22-25 of thisreport. ProprietaryFunds –Thecitymaintainstwodifferenttypesofproprietary funds.Enterprisefundsareusedtoreportthesamefunctionspresentedas business-typeactivitiesinthegovernment-widefinancialstatements.Thecity maintainsfiveenterprisefundswhichareconsideredproprietaryfunds. Enterprisefundsareusedtoreportthesamefunctionspresentedasbusiness- typeactivitiesinthegovernment-widefinancialstatements.Thecityuses enterprisefundstoaccountforitswaterandsewageserviceoperations,liquor salesoperation,deputyregistrar,andfiberopticsoperation.Internalservice fundsareanaccountingdeviceusedtoaccumulateandallocatecosts internallyamongthecity’svariousfunctions.Thecityusesinternalservice fundstoaccountforinformationtechnology(IT)servicesandcentral equipmentservices.Becausetheseinternalservicefundactivities predominantlybenefitgovernmentalratherthanbusiness-typefunctions,they havebeenincludedwithingovernmentalactivitiesinthegovernment-wide financialstatements. Proprietaryfundsprovidethesametypeofinformationasthegovernment- widefinancialstatements,onlyinmoredetail.Theproprietaryfundfinancial statementsprovideseparateinformationforeachoftheenterpriseoperations. Theinternalservicefundsarecombinedintoasingle,aggregatedpresentation intheproprietaryfundfinancialstatements.Individualfunddatafortheinternal servicefundsisprovidedintheformofcombiningstatementselsewherein thisreport. Theproprietaryfundfinancialstatementscanbefoundonpages 26-31 ofthis report. NotestoBasicFinancialStatements –Thenotestobasicfinancial statementsprovideadditionalinformationthatisessentialtoobtainingafull understandingofthedataprovidedinthegovernment-wideandfundfinancial statements. Thenotestothebasicfinancialstatementscanbefoundpages 32-51 ofthis report. OtherInformation –Inadditiontothebasicfinancialstatementsand accompanyingnotes,thisreportpresentsrequiredsupplementaryinformation onfundingprogressforthefirereliefassociation,theotherpost-employment benefits(OPEB)planandbudgetarycomparisoninformation.Combining statementsfornonmajorandinternalservicefundscanalsobefoundinthe supplementalsectionofthisreport. Requiredsupplementaryinformation,combiningandindividualfund statements,andscheduleswithadditionalinformationcanbefoundstartingon page 53. 10 Management’sDiscussionandAnalysisCITYOFMONTICELLO FinancialHighlights Theassetsofthecityexceededitsliabilitiesatyear-endby$124,738,996(net position).Ofthisamount,$23,914,473(unrestrictednetposition)maybeused tomeetthecity’songoingobligationstocitizensandcreditors. Asofthecloseofthecurrentfiscalyear,thecity’sgovernmentalfunds reportedcombinedendingfundbalancesof$23,921,338,anincreaseof $769,137,or3.3percent.Nonspendable,restricted,andassignedusesof fundbalancetotaled$19,716,607,leavinganunassignedfundbalanceof $4,204,731.The2014year-endunassignedfundbalanceis$548,268,or15 percent,higherthanthe2013endingbalance Attheendofthecurrentfiscalyear,unassignedfundbalancefortheGeneral Fundwas$4,204,731,or65.6percent,oftotalGeneralFundexpendituresfor 2014.Thecitytargets45percentofnextyear’sexpenditurebudgetasthe optimumfundbalancelevel,providingareserveforcashflowduringthefirst sixmonthsofeachsubsequentyearuntilpropertytaxreceiptsarereleased fromthecountytreasurer’sofficeanddistributedtothelocallevelsof government.Thestateauditorrecommendsthatlocalgovernmentsmaintain anunrestrictedfundbalanceofapproximately35–50percentofoperating revenuesornolessthanfivemonthsofoperatingexpendituresforthe GeneralFund.TheGeneralFund’sheavydependenceonpropertytax revenuesvalidatesthe45percenttarget.(Source:MinnesotaOfficeofthe StateAuditor:FundBalanceReportingandGovernmentalFundType Definitions,basedonGovernmentalAccountingStandardsBoard(GASB) StatementNo.54,2010–1003RevisedJuly2012). In2014,government-widecapitalassetsdeclinedby$2,182,583because depreciationonexistingassetsexceededinvestmentinnewandreplacement capitalassets.Throughitsgovernmentalactivities,thecityacquiredlandfor BertramChainofLakesparkdevelopmentatacostof$1,286,557.This acquisitionwassupplementedbya$396,713stategrant. Thecity’stotallong-termliabilitiesdecreasedby$25,165,192,or47.2percent, in2014.Principalpaymentsmadeonoutstandingdebttotaled$5,744,000. Thecityissued$6,595,000ingeneralobligationsbondsin2014:$6,080,000 foralegalsettlementwithtelecommunicationbondholders;$515,000for equipmentpurchasesintheCentralEquipmentFund.Thelegalsettlement eliminatedthe$26,445,000revenuebondliabilityanditscorresponding accruedinterestpayable;bothwereaccountedforintheFiberOpticsFund. Thedebtserviceonthejudgmentportionofthenewbondswillbesupported bypropertytaxes.Thegainonextinguishmentofthisdebtis$20,990,451. 11 Management’sDiscussionandAnalysisCITYOFMONTICELLO GOVERNMENT-WIDEFINANCIALANALYSIS NETPOSITION 2014 2013 2014 2013 2014 2013 Currentandotherassets 33,296,323$33,703,304$10,138,195$13,326,965$43,434,518$47,030,269$ Capitalassets 66,301,813 66,933,820 45,355,552 46,906,128 111,657,365 113,839,948 Totalassets 99,598,136 100,637,124 55,493,747 60,233,093 155,091,883 160,870,217 Long-termliabilities 24,734,406 23,575,940 3,346,424 29,670,082 28,080,830 53,246,022 Otherliabilities 1,363,950 1,187,058 908,107 3,602,541 2,272,057 4,789,599 Totalliabilities 26,098,356 24,762,998 4,254,531 33,272,623 30,352,887 58,035,621 Netposition Netinvestmentin capitalassets 48,253,810 44,268,757 42,117,264 20,496,832 90,371,074 64,765,589 Restricted 10,453,449 13,570,548 ––10,453,449 13,570,548 Unrestricted 14,792,521 18,034,821 9,121,952 6,463,638 23,914,473 24,498,459 Totalnetposition 73,499,780$75,874,126$51,239,216$26,960,470$124,738,996$102,834,596$ GovernmentalActivities Business-TypeActivities Total Bythefarthelargestportionofthecity’snetposition(72%)reflects investmentsincapitalassets(e.g.land,buildings,structures,systems, machinery,equipment,infrastructure,andintangibleassets),netofanyrelated debtusedtoacquirethoseassetsthatisstilloutstanding.Thecityusesassets toprovideservicestocitizens;consequently,theseassetsarenotavailablefor futurespending.Althoughthecity’sinvestmentincapitalassetsisreportednet ofrelateddebt,itshouldbenotedthatresourcesneededtorepaythisdebt mustbeprovidedfromothersources,sincecapitalassetsthemselvescannot beusedtoliquidatetheseliabilities. Asmallportionofthecity’snetposition(8%)representsresourcesthatare subjecttoexternalrestrictionsonhowtheycanbeused.Theremaining unrestrictednetpositionof$23,914,473maybeusedtomeettheongoing obligationstocitizensandcreditors.Oftheunrestrictednetpositions, $9,121,952(38%)isattributabletobusiness-typeactivities. Theunrestrictedgovernmentalactivitiesnetpositiondecreased$3,242,300 (18%),whilebusiness-typeactivitiesunrestrictednetpositionincreased $2,658,314(41%).Thegovernment-widetotalunrestrictednetposition decreased$583,986(2%),reflectingrevenuesexceedingconservative budgetedestimatesandtherapidamortizationofdebt. The$632,007(1%)decreaseingovernmentalactivitiescapitalassetsis reflectiveofdepreciationexceedingreinvestment.Business-typecapital assetsdecreased$1,550,576(3%)formuchsamereason. Netinvestmentincapitalasset,whichiscapitalassetslessrelateddebt, soaredasaresultofthelegalsettlementwithtelecommunicationbondholders. 12 Management’sDiscussionandAnalysisCITYOFMONTICELLO CHANGEINNETPOSITION 2014 2013 2014 2013 2014 2013 Revenues Programrevenues Chargesforservices 2,096,398$2,178,816$6,748,031$6,577,342$8,844,429$8,756,158$ Operatinggrantsandcontributions 295,828 293,710 ––295,828 293,710 Capitalgrantsandcontributions 1,774,628 1,079,738 488,628 –2,263,256 1,079,738 Generalrevenues Propertytaxes 9,219,737 8,927,164 ––9,219,737 8,927,164 Franchisetaxes 357,409 320,640 ––357,409 320,640 Unrestrictedgrantsandaids 27,502 65,228 ––27,502 65,228 Unrestrictedinvestmentearnings 784,347 (189,128)399,757 (117,175)1,184,104 (306,303) Gain(loss)onsaleofassets –3,885 –––3,885 Other 217,643 489,782 –65,468 217,643 555,250 Totalrevenues 14,773,492 13,169,835 7,636,416 6,525,635 22,409,908 19,695,470 Expenses Generalgovernment 1,488,243 1,623,727 ––1,488,243 1,623,727 Publicsafety 1,880,193 1,884,981 ––1,880,193 1,884,981 Publicworks 5,223,345 5,163,461 ––5,223,345 5,163,461 Sanitation 517,956 505,995 ––517,956 505,995 Transit 10,000 –––10,000 – Recreationandculture 2,882,127 2,856,533 ––2,882,127 2,856,533 Economicdevelopment 1,084,620 1,005,813 ––1,084,620 1,005,813 Interestandfiscalcharges 649,854 235,265 ––649,854 235,265 Water ––1,084,882 1,009,600 1,084,882 1,009,600 Sewage ––2,762,357 2,466,660 2,762,357 2,466,660 Liquor ––692,976 689,559 692,976 689,559 Fiberoptics ––2,919,170 5,240,871 2,919,170 5,240,871 Deputyregistrar ––300,236 293,531 300,236 293,531 Totalexpenses 13,736,338 13,275,775 7,759,621 9,700,221 21,495,959 22,975,996 Increaseinnetposition beforetransfersandspecialitem 1,037,154 (105,940)(123,205)(3,174,586)913,949 (3,280,526) Transfers (3,411,500)278,500 3,411,500 (278,500)–– Specialitem:gainonextinguishmentofdebt ––20,990,451 –20,990,451 – Changeinnetposition (2,374,346)172,560 24,278,746 (3,453,086)21,904,400 (3,280,526) Netposition-beginningofyear 75,874,126 75,701,566 26,960,470 30,413,556 102,834,596 106,115,122 Netposition–endofyear 73,499,780$75,874,126$51,239,216$26,960,470$124,738,996$102,834,596$ GovernmentalActivities Business-TypeActivities Total 13 Management’sDiscussionandAnalysisCITYOFMONTICELLO Investment earnings 5%Other 1% Chargesforservices 15% Operating grants& contributions 2% Capitalgrants& contributions 12%Franchisetaxes 2% Propertytaxes 63% RevenuesbySource- GovernmentalActivities $- $1 $2 $3 $4 $5 $6 General government PublicsafetyPublicworksSanitation Transit Recreation andculture Economic development Millions ProgramExpensesandRevenues- GovernmentalActivities ProgramExpenses ProgramRevenues GovernmentalActivities.Themostsignificantrevenuesourcefor governmentalactivitiesispropertytaxesat63%oftotalrevenues.Property taxessupporttheGeneralFund,CommunityCenterFundandtheDebt ServiceFund.Chargesforservicesaccountsfor15%ofrevenues,mostof whichisgeneratedbytheCommunityCenter.Capitalgrantsandcontributions includespecialassessmentsandrevenuesfromothersourcesrestrictedto capitalassetacquisition.Investmentearningsincludebothinterestreceived andtheincreaseintheinvestmentmarketvalues.Taxincrementsareproperty taxescollectedintaxincrementfinancingdistrictsandarerestrictedfor developmentpurposes. Publicworks(engineering,streets,iceandsnowremoval,shopandgarage, streetlighting,parkinglots,etc.)expensesarethemostsignificant(38%), followedbyrecreationandculture(21%),publicsafety(14%),general government(11%),economicdevelopment(8%).Includedintheseamountsis depreciationexpense,whichis30%ofthetotalexpensesforgovernmental activities. Governmentalrevenuesincreased$1,603,657(12%)inthecurrentyear,with themostsignificantportionoftheincreaseattributabletoinvestmentearnings. In2014,thepositivechangeininvestmentmarketvaluescomprised49%of investmentearnings.In2013,thecityreportednegativeinvestmentearnings becauseinterestreceivedwasexceededbythedropinmarketvalues. Governmentalfundinvestmentearningsfor2014totaled$784,347.Property taxescollectionsincreasedbymorethan5percentwitha3.2percenthigher taxlevyanddelinquentcollections.Capitalgrantsandcontributionswere affectedbyassessmentcollectionsandastategrantforlandacquisition. Governmentalactivitiesexpensesincreased$460,563(3%)inthecurrent year.Themostsignificantchangesinprogramexpenseswereasfollows: •Publicworksexpensesincreased$59,884(1%)fromadditional maintenanceactivities.Publicsafetyexpensesdeclined$4,788(much lessthan1%)withthedecreaseinlawenforcementmorethanoffsetting theincreaseinfire&rescue.Recreationandcultureincreased$25,594 (1%). •Partiallyattributabletoreallocationofexpensesrelatedtoinformation technologyandinsurance,generalgovernmentexpensesdecreased $135,484(8%).Transitexpensesincreasedto$10,000.Thetransit serviceproviderchangedduringtheyearandannualcostsareexpected toriseto$40,000. Therewerenotanyotherprogramswithsignificantorunusualchanges. 14 Management’sDiscussionandAnalysisCITYOFMONTICELLO Chargesfor services 89% Capitalgrants& contributions 6% Investment earnings 5% RevenuesbySource- Business-TypeActivities $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 WaterUtility SewageUtility Liquor FiberOptics DeputyRegistrar M illions ProgramRevenuesandExpenses- Business-TypeActivities Revenues Expenses Business-typeActivities.Business-typeactivitiesincreasedthecity’snet positionby$24,278,746,whichis$27,731,832morethanthepriorfiscalyear decreaseof$3,453,086. Keyelementsofthechangeareasfollows: TheFiberOpticsFundrecordedaspecialitemgainonextinguishmentofdebt for$20,990,451.Thegainreflectstheextinguishmentof$26,445,000in revenuebondsminuscashfromatransferinandthepaymentofrestricted cashheldbyatrustee.Thecashforthetransferincamefromthe$6,080,000 judgmentportionofa$6,595,000generalobligationbondissue. Business-typeactivitiesinvestmentearningsfor2014totaled$399,757.Thisis a516,932increaseovertheprioryear’snegativeinvestmentearningsof $117,175.Asnotedearlierinthegovernmentalactivitiessection,swingsin marketvaluehaveasignificantimpactonnetinvestmentearnings. Capitalgrantsandcontributionsforwaterandsewertrunkchargesarenow accountedforineachrespectiveenterprisefund.Capitalcontributionsfor 2014totaled$488,628. FINANCIALANALYSISOFTHECITY’SFUNDS Governmentalfunds.Thefocusofthecity’sgovernmentalfundsisto provideinformationonnear-terminflows,outflows,andbalancesofspendable resources.Suchinformationisusefulinassessingthecity’sfinancing requirements.Inparticular,spendablefundbalancesmayserveasauseful measureofagovernment’snetresourcesavailableforexpenditureattheend ofthefiscalyear. AtDecember31,2014,thecity’sgovernmentalfundsreportedtotalending fundbalancesof$23,921,338,anincreaseof$769,137(3%)whencompared withtheprioryear.Nearly44%or$10,453,449ofthetotalendingfund balancesconstitutedrestrictedfundbalances,whichareconsidered unavailableforappropriationforgeneraloperations.The$1,941,171 nonspendablefundbalanceaccountedfor8%oftotalgovernmentalfund balancesandiscomprisedoflandheldforresaleandprepaiditems. Attheendofthefiscalyear,theGeneralFundreportedafundbalanceof $4,331,058,increasing$416,495(11%)fromtheprioryear.Generalfund revenueswere$130,657(2%)morethanthepriorfiscalyearand expendituresdecreasedby$50,782(lessthan1%).Transfersoutincreased by$201,000to$293,000:a$93,000annualtransfertotheEDAFundanda 15 Management’sDiscussionandAnalysisCITYOFMONTICELLO one-time$200,000totheCapitalProjectsFundforconstructionofthe communicationstower. Generalgovernmentexpendituresincreased$48,747(4%)withmostofthe increaserelatedtoevenyearelectionyearcosts.Streetmaintenancewas largelyresponsibleforthe$92,709(5%)declineinpublicworksexpenditures. Recreationandcultureexpendituresdeclinedby$61,099(7%)becausethe citynolongerhadtomakeanannual$75,000icearenapayment.Public safetyexpendituresremainedrelativelyunchangedwithincreasedfire expendituresoffsetbyareductioninlawenforcement. ThefundbalanceintheCommunityCenterFundincreased$169,620(63%)to $440,824.Propertytaxcollectionsincreased$207,069(18%)toreflecta higherlevyforadebtservicetransferoutandexpenditurereallocation. Chargesforservicesincreased$30,802(2%)to$1,323,410in2014.The transferfordebtserviceincreasedfrom$875,000in2013to$1,040,000in 2014. ThefundbalanceinEconomicDevelopmentAuthority(EDA)Funddecreased $203,631(3%)to$6,911,674.Therestrictedfundbalanceincluded $3,428,757inlandheldforresaleand$34,689innotesreceivable.The restrictedportionofthefundbalanceisattributabletotaxincrementdistricts andloanprograms. ThefundbalanceintheDebtServiceFundincreased$1,168,991(43%)to $3,919,070.Theplannedfundbalanceincreasemarksthecity’sefforttohave Februarydebtservicepaymentsremovedfromthefundbalancesof supportingfundsintheyearpriortopayment.Specialassessmentrevenue increased$472,856(47%)to$1,489,276.Onepropertyowner’spaymentof deferredassessmentscontributedsignificantlytotheincrease. TheCapitalProjectsFundprovidestheaccountingforacquisitionofgeneral governmentcapitalassets.Accordingly,thefundaccumulatesresourcesfrom varioussourcesandexpendituresmayormaynotoccurinthesameyearof accumulation.Consequently,thefundbalanceintheCapitalProjectsFund declined$584,075(17%)to$2,895,619.The$1,787,089nonspendable portionthefundbalanceislandheldforresale.Thecitytransferred$200,000 fromtheGeneralFundtotheCapitalProjectsFundtofinancecommunication towerconstruction. ThefundbalanceintheParkandPathwayDedicationFunddecreased $235,100to$738,433.Thefundexpended$1,286,557forlandacquisition relatedtotheBertramChainofLakesdevelopment.Intergovernmental revenuesincludedastategrantrelatedtolandpurchase. Proprietaryfunds.Theproprietaryfundsprovidethesametypeof informationfoundinthegovernment-widefinancialstatements,butinmore detail. WaterFundexpensesincreased$75,282(7%)withinstallationofnewand replacementradioreaddevices.TheWaterFundtransferred$631,560to DebtServiceFundforimprovementsrelatedtothewatersystem.Thefund’s netpositiondeclined$319,139(2%)to$14,901,305.Depreciationexpensefor thefundtotaled$514,710. SewageFundexpensesincreased$295,697(12%),largelyattributableto operationalchangesatthewastewatertreatmentplant.TheSewageFund transferred$1,690,672totheDebtServiceFundforimprovementsrelatedto thesewagesystem.Thefund’snetpositiondeclined$1,803,148(8%)to $20,761,130.Depreciationexpenseforthefundtotaled$1,106,532. TheLiquorFund’snetpositionincreased$8,138(lessthan1%)to$987,433. Thefund’ssalesincreased$79,813(2%)to$5,165,737.Grossprofitdeclined $29,263(2%)to$1,289,040.Aggressivesalepromotionstomaintainstore trafficwhileroadconstructioncommencedcontributedtothedecrease.The LiquorFundtransferred$600,000totheFiberOpticsFundin2014.Operating expenseswerelessthanonepercenthigherat$694,567in2014. TheFiberOpticsFundnetpositionchangeddramaticallyin2014withthe resolutionofthebondholder’slegalaction.Theextinguishmentofdebt resultedingainof$20,990,451.Theoperatinglosswithout$312,510inbond settlementexpensesequaled$736,596.Depreciationforthefundtotaled $442,930. TheDeputyRegistrarFundnetpositionincreased$155,825(69%)to $380,876.Chargesforservicesincreased$41,424(9%)to$497,709and operatingexpensesincreased$8,571(3%)to$302,709.Depreciationforthe fundtotaled$3,185. Otherfactorsofthechangesinincomefromoperationshavepreviouslybeen discussedinthegovernment-widefinancialanalysisofbusiness-type activities. 16 Management’sDiscussionandAnalysisCITYOFMONTICELLO GENERALFUNDBUDGETARYHIGHLIGHTS GeneralFundrevenuestotaled$7,119,002andexceededbudgetby$359,002 (5%).Licensesandpermitsandotherrevenueswere$105,630(39%)and $108,859(153%)higherthanbudget,respectively.Licensesandpermitswere impactedbytheincreaseinbuildingpermits.Otherrevenuesincludean insurancedividend,whichvariesfromyear-to-yearandisneverbudgeted. GeneralFundexpenditurestotaled$6,409,507andwere$257,493(4%)less thanbudget.A$200,000transfertotheCapitalProjectsFundfor communicationtowerconstructionpushedotherfinancingusespastbudgetby thesameamount.Infiscalyear2014,twofunctionsexceededbudget(public safetyandtransit)andonedepartment(fire&rescue)exceededbudget. Somereportingdivisionswithinadepartmentmayhaveexceededbudgetbut wereoffsetbypositivevariancesinotherdivisionsinthesamedepartment. Elevenofthirty-sixreportingdivisionsexceededbudget. TheGeneralFundyearendfundbalancessince2010areasfollows: Year Amount 2010 4,981,034$ 2011 4,410,637 2012 3,478,507 2013 3,914,563 2014 4,331,058 CAPITALASSETSANDDEBTADMINISTRATION CAPITALASSETS 2014 2013 2014 2013 2014 2013 Land 13,825,156 11,919,531$1,197,945$1,197,945$15,023,101$13,117,476$ Constructioninprogress 1,742,073 3,492,384 2,507,712 2,407,995 4,249,785 5,900,379 Buildingsandsystems 90,748,030 88,061,229 77,274,052 77,159,690 168,022,082 165,220,919 Machineryandequipment 5,328,537 4,707,040 2,549,969 2,241,362 7,878,506 6,948,402 Less: Accumulateddepreciation (45,341,983)(41,246,364)(38,174,126)(36,100,864)(83,516,109)(77,347,228) Nettotal 66,301,813$66,933,820$45,355,552$46,906,128$111,657,365$113,839,948$ GovernmentalActivities Business-TypeActivities Total Capitalassets.Thecity’sinvestmentincapitalassetsforitsgovernmentaland business-typeactivitiesatDecember31,2014totaled$111,657,365(netof accumulateddepreciation).Thisinvestmentincapitalassetsincludedland, constructioninprogress,structures,systems,machineryandequipment, intangibleassets,andinfrastructure. Majorgovernmentalactivitiescapitalassetsacquisitions:$1,286,557forBertram ChainofLakeslandand$561,491forCentralEquipmentFundequipment, includingafiretender.Business-typecapitalassetsacquisitionsincludednearly $400,000forthewastewatertreatmentplantimprovementsand$240,000for fiberopticsequipment.Thetotaldecreasefromthepriorfiscalyearis approximately2%;governmentalactivitiesdecreasedlessthan1%and business-typeactivitiesdecreased3%. Additionalinformationonthecity’scapitalassetscanbefoundinthenotestothe financialstatementsonpages41-42. 17 Management’sDiscussionandAnalysisCITYOFMONTICELLO OUTSTANDINGINDEBTEDNESS 2014 2013 2014 2013 2014 2013 Generalobligationbonds 12,680,653$7,506,653$3,206,347$3,479,347$15,887,000$10,986,000$ Certificateofindebtedness 385,000 445,000 ––385,000 445,000 Specialassessmentbonds 10,010,000 13,010,000 ––10,010,000 13,010,000 Revenuebonds 985,000 1,975,000 –26,445,000 985,000 28,420,000 Total 24,060,653$22,936,653$3,206,347$29,924,347$27,267,000$52,861,000$ Governmental Business-Type Activities Activities Total Long-termDebt.Thecity’soutstandinglong-termdebt--includinggeneral obligationbonds,specialassessmentbonds,revenuebondsandcertificates ofindebtedness—totaled$27,267,000atDecember31,2014.Business-type long-termdebtdecreasedsignificantlywiththe$26,445,000extinguishmentof thetelecommunicationrevenuebonds.Meanwhile,thecityissued$6,080,000 ingeneralobligationbondstofacilitatethesettlementwithrevenue bondholdersandextinguishthedebt.Thecityalsoissued$515,000ingeneral obligationbondstopurchaseequipment.Allotherchangesaretheresultof normalamortization. Additionalinformationonthecity’slong-termliabilitiescanbefoundinthe notestothefinancialstatementsonpages42-45 ofthisreport. ECONOMICFACTORSANDNEXTYEAR’SBUDGETSANDRATES •TheunemploymentratefortheWrightCounty,Minnesotaareafor December31,2014was3.8%,whichisabovethestateaverage(3.6%) andbelowthenationalaverage(5.4%). •Thestateandlocaleconomyareimproving.Newcommercialand residentialdevelopmentgrewatasustainablepacein2014. •Theoccupancyrateofthecity’sbusinessdistricthasremainedconstant overthelastthreeyearsandnewcommercialconstructionisgrowing. •Inflationarytrendsintheregioncomparefavorablytonationalindicesand housingpriceshaverisenthelasttwoyears. •Thecityexpectsresidentialandcommercialgrowthtoeventuallyreturnto pre-recessionlevels,accompaniedbytheincreaseinaffordablehousing. REQUESTSFORINFORMATION Thisfinancialreportisdesignedtoprovideageneraloverviewofthecity’s financesforallthoseinterestedingovernmentalfinance.Questions concerninganyinformationinthereportorrequestsforadditionalinformation shouldbeaddressedtoCityofMonticello,FinanceDepartment,505Walnut Street,Suite1,Monticello,MN55362. 18 BASIC STATEMENTS CITYOFMONTICELLO StatementofNetPosition December31,2014 Governmental Business-type Activities Activities Total ASSETS Cashandinvestments 20,148,359$8,329,275$28,477,634$ Receivables: Currenttaxes 41,828 -41,828 Deliquenttaxes 42,680 -42,680 Currentspecialassessments 924,004 162,921 1,086,925 Deliquentspecialassessments 1,646,163 26,987 1,673,150 Deferredspecialassessments 3,997,633 25,251 4,022,884 Accruedinterest 124,133 -124,133 Accounts,netuncollectiblesallowance 336,223 924,701 1,260,924 Duefromothergovernmentalunits 117 -117 Internalbalances (9,915)9,915 - Inventories -520,020 520,020 Prepaiditems 154,419 139,125 293,544 Notesreceivable 674,833 -674,833 Landheldforresale 5,215,846 -5,215,846 Capitalassets: Nondepreciable 15,567,229 3,705,657 19,272,886 Depreciable,net 50,734,584 41,649,895 92,384,479 TOTALASSETS 99,598,136 55,493,747 155,091,883 LIABILITIES Accountsandcontractspayable 720,295 778,115 1,498,410 Accruedinterestpayable 201,060 12,550 213,610 Otheraccruedliabilities 222,394 1,496 223,890 Duetoothergovernmentalunits 8,137 115,946 124,083 Unearnedrevenue 19,558 -19,558 Escrowdeposits 192,506 -192,506 Long-termliabilities: Duewithinoneyear 5,174,124 305,431 5,479,555 Dueinmorethanoneyear 19,560,282 3,040,993 22,601,275 TOTALLIABILITIES 26,098,356 4,254,531 30,352,887 NETPOSITION Netinvestmentincapitalassets 48,253,810 42,117,264 90,371,074 Restrictedfor: Debtservice 3,919,070 -3,919,070 Economicdevelopment 2,203,698 -2,203,698 Perpetualcare 30,312 -30,312 Taxincrement 4,300,369 -4,300,369 Unrestricted 14,792,521 9,121,952 23,914,473 TOTALNETPOSITION 73,499,780$51,239,216$124,738,996$ Thenotestothefinancialstatementsareanintegralpartofthisstatement. 19 (Thispageleftblankintentionally) 20 CITYOFMONTICELLO StatementofActivities YearEndedDecember31,2014 Operating Capital Chargesfor Grantsand Grantsand Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmentalactivities: Generalgovernment 1,488,243$180,145$-$-$(1,308,098)$-$(1,308,098)$ Publicsafety 1,880,193 164,616 184,548 -(1,531,029)-(1,531,029) Publicworks 5,223,345 371,671 111,280 1,404,915 (3,335,479)-(3,335,479) Sanitation 517,956 48,385 --(469,571)-(469,571) Transit 10,000 ---(10,000)-(10,000) Recreationandculture 2,882,127 1,331,581 -369,713 (1,180,833)-(1,180,833) Economicdevelopment 1,084,620 ---(1,084,620)-(1,084,620) Interestandfiscalcharges 649,854 ---(649,854)-(649,854) Totalgovernmentalactivities 13,736,338 2,096,398 295,828 1,774,628 (9,569,484)-(9,569,484) Business-typeactivities WaterUtility 1,084,882 1,117,226 -81,291 -113,635 113,635 SewageUtility 2,762,357 2,081,660 -407,337 -(273,360)(273,360) Liquor 692,976 1,289,369 ---596,393 596,393 FiberOptics 2,919,170 1,761,978 ---(1,157,192)(1,157,192) DeputyRegistrar 300,236 497,798 ---197,562 197,562 Totalbusiness-typeactivities 7,759,621 6,748,031 -488,628 -(522,962)(522,962) Totalprimarygovernment 21,495,959$8,844,429$295,828$2,263,256$(9,569,484)(522,962)(10,092,446) GeneralRevenues: Propertytaxes 9,219,737 9,219,737 Franchisetaxes 357,409 357,409 Unrestrictedgrantsandcontributions 27,502 27,502 Unrestrictedinvestmentearnings 784,347 399,757 1,184,104 Other 217,643 217,643 Specialitem:gainonextinguishmentofdebt 20,990,451 20,990,451 Transfers (3,411,500)3,411,500 - Totalgeneralrevenues,specialitems,andtranfers 7,195,138 24,801,708 31,996,846 ChangeinNetPosition (2,374,346)24,278,746 21,904,400 NetPosition-January1 75,874,126 26,960,470 102,834,596 NetPosition-December31 73,499,780$51,239,216$124,738,996$ Net(Expense)RevenueandChangesinNetPositionProgramRevenues Thenotestothefinancialstatementsareanintegralpartofthisstatement. 21 CITYOFMONTICELLO BalanceSheet GovernmentalFunds December31,2014 Economic Park&Total Total Community Development Debt Capital Pathway Nonmajor Governmental General Center Authority Service Projects Dedication Funds Funds ASSETS Cashandinvestments 4,639,206$459,215$3,484,428$3,700,941$1,446,699$738,333$4,610,925$19,079,747$ Receivables: Currenttaxes 33,734 3,360 1,280 3,331 --123 41,828 Delinquenttaxes 28,728 7,265 86 6,601 ---42,680 Currentspecialassessments 1,242 --783,945 138,817 --924,004 Delinquentspecialassessments 320 --1,449,601 196,242 --1,646,163 Deferredspecialassessments ---3,383,684 613,949 --3,997,633 Accounts 45,430 --215,800 --74,993 336,223 Accruedinterest 124,133 ------124,133 Duefromothergovernmentalunits 117 ------117 Notesreceivable --34,689 400,000 --240,144 674,833 Landheldforresale --3,428,757 -1,787,089 --5,215,846 PrepaidItems 126,327 17,925 8,336 ---1,737 154,325 TOTALASSETS 4,999,237$487,765$6,957,576$9,943,903$4,182,796$738,333$4,927,922$32,237,532$ LIABILITIES Liabilities: Accountsandcontractspayable 220,264$24,779$35,816$1,002$338,169$-$3,018$623,048$ Otheraccruedliabilities 222,394 ------222,394 Duetoothergovernmentalunits 1,325 6,739 -----8,064 Unearnedrevenue 11,400 8,158 -----19,558 Escrowdeposits 182,506 -10,000 ----192,506 Totalliabilities 637,889 39,676 45,816 1,002 338,169 -3,018 1,065,570 DEFERREDINFLOWSOFRESOURCES Unavailablerevenue-propertytaxes 28,728 7,265 86 6,601 ---42,680 Unavailablerevenue-specialassessments 1,562 --5,617,230 949,008 --6,567,800 Unavailablerevenue-notesreceivable ---400,000 --240,144 640,144 TotalDeferredInflowsofResources 30,290 7,265 86 6,023,831 949,008 -240,144 7,250,624 FUNDBALANCES Nonspendable 126,327 17,925 8,336 -1,787,089 -1,737 1,941,414 Restricted --5,398,990 3,919,070 --1,135,389 10,453,449 Assigned -422,899 1,504,348 -1,108,530 738,333 3,547,634 7,321,744 Unassigned 4,204,731 ------4,204,731 Totalfundbalance 4,331,058 440,824 6,911,674 3,919,070 2,895,619 738,333 4,684,760 23,921,338 TOTALLIABILITIES,DEFERREDINFLOWS OFRESOURCES,ANDFUNDBALANCES 4,999,237$487,765$6,957,576$9,943,903$4,182,796$738,333$4,927,922$32,237,532$ Thenotestothefinancialstatementsareanintegralpartofthisstatement. 22 CITYOFMONTICELLO ReconciliationoftheGovernmentalFundsBalanceSheet totheStatementofNetPosition December31,2014 Totalfundbalances-governmentalfunds 23,921,338$ Amountsreportedforgovernmentalactivitiesinthestatementofnetpositionaredifferentbecause: Capitalassetsusedingovernmentalactivitiesarenotfinancialresources and,therefore,arenotreportedinthefunds. Land 13,825,156$ Constructioninprogress 1,742,073 Buildingsandsystems 90,748,030 Machineryandequipment 4,655,033 Accumulateddepreciation (45,302,379)65,667,913 Long-termliabiltiesthatpertaintogovernmentalfunds,includingbondspayable,arenotdueandpayableinthe inthecurrentperiodand,therefore,arenotreportedasfundliabilities.Allliabilities,bothcurrentandlong-term, arereportedintheStatementofNetPosition. Bondspayable (23,160,653)$ Unamortizedbonddiscounts 184,145 Unamortizedbondpremiums (251,495) Compensatedabsences (322,842)(23,550,845) Internalservicefundsareusedbymanagementtochargethecostsofcentralequipmentandinformation technologyservicestoindividualfunds.Theassetsandliabilitiesofoftheinternalservicefundsareincluded ingovernmentalactivitiesintheStatementofNetPosition. Internalservicefundnetpositionincludedinthegovernmentalactivities 703,904$ Lessinternalservicesnetpositionallocatedtotobusiness-typeactivities (9,915)693,989 Netotherpost-employmentbenefitobligationspayableandreportedinthestatementofNetpositiondonotrequire theuseofcurrentfinancialresourcesandarenotreportdasliabilitiesingovernmentalfundsuntilactuallydue.(283,561) Someofthecity'spropertytaxes,specialassessments,andnotesreceivablewillbecollectedafteryear-end,butarenot availablesoonenoughtopayforcurrrentperiodexpendituresand,therefore,arereportedasdeferredinflowsofresources inthegovernmentalfunds.7,250,624 Interestonlong-termdebtisnotaccruedingovernmentalfunds,butratherisrecognizedasanexpenditurewhendue. AccruedinterestforgeneralobligationbondsisincludedintheStatementofNetPosition.(199,678) NETPOSITIONOFGOVERNMENTALACTIVITIES 73,499,780$ Thenotestothefinancialstatementsareanintegralpartofthisstatement. 23 CITYOFMONTICELLO StatementofRevenues,ExpendituresandChangesinFundBalance GovernmentalFunds YearEndedDecember31,2014 Economic Park&Total Total Community Development Debt Capital Pathway Nonmajor Governmental General Center Authority Service Projects Dedication Funds Funds Revenues: Propertytaxes 5,527,958$1,388,404$-$1,262,235$228,854$-$176$8,407,627$ Taxincrements --826,363 ----826,363 Franchisetaxes 216,500 ---53,933 -86,976 357,409 Specialassessments 22,808 --1,489,276 400,848 --1,912,932 Licensesandpermits 378,810 ------378,810 Intergovernmental 320,691 ---41,962 369,713 -732,366 Chargesforservices 319,477 1,323,410 4,128 ---75,959 1,722,974 Finesandforfeitures 1,900 ------1,900 Investmentearnings 150,754 (19,044)168,282 96,681 86,654 32,870 222,759 738,956 Otherrevenues 180,104 22,993 7,513 200,003 2,500 --413,113 Totalrevenues 7,119,002 2,715,763 1,006,286 3,048,195 814,751 402,583 385,870 15,492,450 Expenditures: Current Generalgovernment 1,450,930 ------1,450,930 Publicsafety 1,845,073 ------1,845,073 Publicworks 1,792,870 -----292 1,793,162 Sanitation 517,956 ------517,956 Transit 10,000 ------10,000 Recreationandculture 792,678 1,556,143 ---15,626 22,385 2,386,832 Economicdevelopment --1,084,564 ---56 1,084,620 Capitaloutlay Publicworks ----934,326 --934,326 Recreationandculture -----1,286,557 -1,286,557 Debtservice Principal ---5,411,000 ---5,411,000 Interestandfiscalcharges ---658,983 ---658,983 Totalexpenditures 6,409,507 1,556,143 1,084,564 6,069,983 934,326 1,302,183 22,733 17,379,439 Excess(deficiency)ofrevenuesoverexpenditures 709,495 1,159,620 (78,278)(3,021,788)(119,575)(899,600)363,137 (1,886,989) Otherfinancingsources(uses): Generalobligationbondsissued ---6,080,000 ---6,080,000 Discountongeneralobligationbondsissued ---(12,374)---(12,374) Transfersin -50,000 93,000 3,906,885 200,000 664,500 -4,914,385 Transfersout (293,000)(1,040,000)(218,353)(5,783,732)(664,500)-(326,300)(8,325,885) Totalotherfinancingsources(uses)(293,000)(990,000)(125,353)4,190,779 (464,500)664,500 (326,300)2,656,126 Netchangeinfundbalances 416,495 169,620 (203,631)1,168,991 (584,075)(235,100)36,837 769,137 Fundbalanceatbeginningofyear 3,914,563 271,204 7,115,305 2,750,079 3,479,694 973,433 4,647,923 23,152,201 Fundbalanceatendofyear 4,331,058$440,824$6,911,674$3,919,070$2,895,619$738,333$4,684,760$23,921,338$ Thenotestothefinancialstatementsareanintegralpartofthisstatement. 24 CITYOFMONTICELLO ReconciliationoftheStatementofRevenues,ExpendituresandChanges inFundBalancesofGovernmentalFundstotheStatementofActivities YearEndedDecember31,2014 Netchangeinfundbalances--governmentalfunds 769,137$ AmountsreportedforgovernmentalactivitiesintheStatementofActivitiesaredifferentbecause: Governmentalfundsreportedcapitaloutlaysasexpenditures.However,inthestatementofactivitiesthecost ofthoseassetsisallocatedovertheirestimatedusefullivesandreportedasdepreciationexpense. Thisistheamountbywhichcapitaloutlaysexceededdepreciationinthecurrentperiod. Capitaloutlays 2,220,883$ Capitalcontributions 681,238 Depreciation (4,067,722)(1,165,601) Proceedsfromlong-termdebtprovidefinancialresourcestogovernmentalfunds,buttheissuingofdebt increaseslong-termliabilitiesintheStatementofNetPosition. Issuanceoflong-termdebt (6,080,000)$ Discountsand(premiums)12,374 (6,067,626) Repaymentoflong-termdebtprincipalisanexpenditureinthegovernmentalfunds,buttherepaymentreduces long-termliabilitiesintheStatementofNetPosition.5,411,000 SomeexpensesreportedintheStatementofActivitiesdonotrequiretheuseofcurrentfinancialresources and,therefore,arenotreportedasexpendituresinthegovernmentalfunds. Amortizationofbonddiscounts (42,321)$ Amortizationofbondpremiums 35,701 Changeincompensatedabsences (12,263) ChangeinOPEBobligation (27,957) Changeaccruedinterestpayable 51,104 4,264$ Deferredinflowsofresourcesarerevenues(i.e.delinquenttaxesandspecialassessments)includedinthechangeinnet position,butareexcludedfromthechangeinfundbalancesuntiltheyareavailabletoliquidateliabilitiesofthecurrentperiod.(1,445,587) Internalservicefundsareusedbymanagementtochargethecostsofcertainactivitiestoindividualfunds Thenetrevenueoftheinternalservicefundsisreportedwithgovernmentalactivities. Internalservicefundactivityincludedingovernmentalactivities 128,029$ Subtractinternalservicefundactivityallocatedtobusiness-typeactivities (7,962)120,067 Changeinnetpositionofgovernmentalactivities (2,374,346)$ Thenotestothefinancialstatementsareanintegralpartofthisstatement. 25 CITYOFMONTICELLO StatementofNetPosition ProprietaryFunds December31,2014 Governmental Activities- Deputy Internal Water Sewage Liquor FiberOptics Registrar Totals ServiceFunds ASSETS Currentassets: Cashandinvestments 4,377,060$2,982,398$563,779$42,559$363,479$8,329,275$1,068,612$ Receivables: Currentspecialassessments 162,921 ----162,921 - Deliquentspecialassessments 26,987 ----26,987 - Deferredspecialassessments 25,251 ----25,251 - Accountreceivable 222,800 550,353 -115,901 35,647 924,701 - Inventory --520,020 --520,020 - Prepaiditems 10,354 23,777 15,384 86,317 3,293 139,125 94 Totalcurrentassets 4,825,373 3,556,528 1,099,183 244,777 402,419 10,128,280 1,068,706 Noncurrentassets: Capitalassets: Land 208,143 984,202 5,600 --1,197,945 - Buildingsandsystems 19,832,724 41,594,037 840,217 14,943,377 63,697 77,274,052 - Machineryandequipment 235,515 1,686,529 134,528 479,132 14,265 2,549,969 673,504 Constructioninprogress -2,507,712 ---2,507,712 - Totalcapitalassets 20,276,382 46,772,480 980,345 15,422,509 77,962 83,529,678 673,504 Lessaccumulateddepreciation (10,126,490)(25,915,965)(715,555)(1,385,918)(30,198)(38,174,126)(39,604) Totalcapitalassets(net)10,149,892 20,856,515 264,790 14,036,591 47,764 45,355,552 633,900 Totalnoncurrentassets 10,149,892 20,856,515 264,790 14,036,591 47,764 45,355,552 633,900 TOTALASSETS 14,975,265 24,413,043 1,363,973 14,281,368 450,183 55,483,832 1,702,606 (continued) Business-TypeActivities–EnterpriseFunds 26 CITYOFMONTICELLO StatementofNetPosition ProprietaryFunds December31,2014 (continued) Governmental Activities- Deputy Internal Water Sewage Liquor FiberOptics Registrar Totals ServiceFunds LIABILITIES Currentliabilities: Accountsandcontractspayable 29,156$401,075$280,376$66,902$606$778,115$97,247$ Accruedinterestpayable -12,550 ---12,550 1,382 Otheraccruedliabilities --1,496 --1,496 - Duetoothergovernmentalunits 1,958 -50,945 6,063 56,980 115,946 73 Bondspayable-current -276,000 ---276,000 60,000 Compensatedabsencesduewithinoneyear 9,066 -10,781 5,468 4,116 29,431 - Totalcurrentliabilities 40,180 689,625 343,598 78,433 61,702 1,213,538 158,702 Noncurrentliabilities: Bondspayable-netcurrentportion -2,930,347 ---2,930,347 840,000 Netdiscounts(premiums)-31,941 ---31,941 - Compensatedabsencespayable 33,780 -32,942 4,378 7,605 78,705 - Totalnoncurrentliabilities 33,780 2,962,288 32,942 4,378 7,605 3,040,993 840,000 TOTALLIABILITIES 73,960 3,651,913 376,540 82,811 69,307 4,254,531 998,702 NETPOSITION Netinvestmentincapitalassets 10,149,892 17,618,227 264,790 14,036,591 47,764 42,117,264 (266,100) Unrestricted 4,751,413 3,142,903 722,643 161,966 333,112 9,112,037 970,004 TOTALNETPOSITION 14,901,305$20,761,130$987,433$14,198,557$380,876$51,229,301 703,904$ Adjustmenttoreflectthecumulativeinternalbalancefortheneteffectoftheactivity betweentheinternalservicefundsandtheenterprisefundsovertime 9,915 Netpositionofbusiness-typeactivities(page19)51,239,216$ Thenotestothefinancialstatementsareanintegralpartofthisstatement. Business-TypeActivities–EnterpriseFunds 27 (Thispageleftblankintentionally) 28 CITYOFMONTICELLO StatementofRevenues,Expenses,andChangesinNetPosition ProprietaryFunds YearEndedDecember31,2014 Governmental Activities- Deputy Internal Water Sewage Liquor FiberOptics Registrar Totals ServiceFunds Salesandcostofsales: Netsales 5,165,737$5,165,737$ Costofsales (3,876,697)(3,876,697) Grossprofit 1,289,040 1,289,040 Operatingrevenues: Chargesforservices 1,082,982$2,024,669$1,665,051$497,709$5,270,411 364,608$ Other 34,244 56,991 329 96,927 89 188,580 - Totaloperatingrevenues 1,117,226 2,081,660 329 1,761,978 497,798 5,458,991 364,608 Operatingexpenses: Personalservices 188,151 242,621 455,648 503,046 254,365 1,643,831 - Materialsandsupplies 162,217 22,132 19,756 145,304 10,573 359,982 22,803 Otherservicesandcharges 220,928 1,305,444 172,241 608,906 34,586 2,342,105 224,278 Bondsettlementcharges ---312,510 -312,510 - Contentandaccesscharges ---798,388 -798,388 - Depreciation 514,710 1,106,532 46,922 442,930 3,185 2,114,279 27,897 Totaloperatingexpenses 1,086,006 2,676,729 694,567 2,811,084 302,709 7,571,095 274,978 Operatingincome(loss)31,220 (595,069)594,802 (1,049,106)195,089 (823,064)89,630 Nonoperatingrevenues(expenses) Investmentearnings 199,910 161,997 13,381 13,733 10,736 399,757 45,391 Interestexpense -(86,741)-(16,297)-(103,038)(6,992) Lossonsaleofcapitalassets ---(93,450)-(93,450)- TotalNonoperatingrevenes(expenses)199,910 75,256 13,381 (96,014)10,736 203,269 38,399 Income(loss)beforetransfers,capital contributionsandspecialitem 231,130 (519,813)608,183 (1,145,120)205,825 (619,795)128,029 Capitalcontributions 81,291 407,337 ---488,628 - Transfersin ---6,383,732 -6,383,732 - Transfersout (631,560)(1,690,672)(600,000)-(50,000)(2,972,232)- Specialitem:gainonextinguishmentofdebt ---20,990,451 -20,990,451 - Changeinnetposition (319,139)(1,803,148)8,183 26,229,063 155,825 24,270,784 128,029 Netpositionatbeginningofyear 15,220,444 22,564,278 979,250 (12,030,506)225,051 575,875 Netpositionatendofyear 14,901,305$20,761,130$987,433$14,198,557$380,876$703,904$ Adjustmenttoreflecttheconsolidationofinternalservicefundrelatedtoenterprisefunds 7,962 Changeinnetpositionofbusiness-typeactivities(page21)24,278,746$ Thenotestothefinancialstatementsareanintegralpartofthisstatement. Business-TypeActivities–EnterpriseFunds 29 CITYOFMONTICELLO StatementofCashFlows ProprietaryFunds YearEndedDecember31,2014 Governmental Activities- Deputy Internal Water Sewage Liquor FiberOptics Registrar Totals ServiceFunds Cashflowsfromoperatingactivities: Cashreceivedfromcustomersandusers 1,091,781$2,070,208$5,166,066$1,780,576$494,291$10,602,922$-$ Cashfrominterfundservicesprovided ------364,608 Cashpaidtosuppliersforgoodsandservices (428,532)(1,170,238)(3,872,929)(2,131,239)(56,232)(7,659,170)(162,422) Cashpaidtoemployees (191,367)(242,621)(449,507)(500,839)(256,995)(1,641,329)- Netcashprovided(used)byoperatingactivities 471,882 657,349 843,630 (851,502)181,064 1,302,423 202,186 Cashflowsfromnoncapitalfinancingactivities: Transfersfromotherfunds ---6,383,732 -6,383,732 - Transferstootherfunds (631,560)(1,690,672)(600,000)-(50,000)(2,972,232)- Netcashprovided(used)bynoncapitalfinancingactivities (631,560)(1,690,672)(600,000)6,383,732 (50,000)3,411,500 - Cashflowsfromcapitalandrelatedfinancingactivities: Capitalcontributions 81,291 407,337 ---488,628 - Acquisitionofcapitalassets (11,656)(517,641)-(127,858)-(657,155)(561,491) Bondholdersettlementpaidtoextinguishlong-termdebt ---(7,867,165)-(7,867,165)- Proceedsfromissuanceoflong-termdebt ------515,000 Principalpaidonlong-termdebt -(273,000)---(273,000)(60,000) Interestandfiscalchargespaidonlong-termdebt -(91,963)---(91,963)(6,120) Netcashprovided(used)bycapitalandrelated financingactivities 69,635 (475,267)-(7,995,023)-(8,400,655)(112,611) Cashflowsfrominvestingactivities: Interestoninvestments 199,910 161,997 13,381 13,733 10,736 399,757 45,391 Netcashprovided(used)byinvestingactivities 199,910 161,997 13,381 13,733 10,736 399,757 45,391 Netincrease(decrease)incashandcashequivalents 109,867 (1,346,593)257,011 (2,449,060)141,800 (3,286,975)134,966 Cashandcashequivalents-January1 4,267,193 4,328,991 306,768 2,491,619 221,679 11,616,250 933,646 Cashandcashequivalents-December31 4,377,060$2,982,398$563,779$42,559$363,479$8,329,275$1,068,612$ Business-TypeActivities–EnterpriseFunds (continued) 30 CITYOFMONTICELLO StatementofCashFlows ProprietaryFunds YearEndedDecember31,2014 (continued) Governmental Activities- Deputy Internal Water Sewage Liquor FiberOptics Registrar Totals ServiceFunds Reconciliationofoperatingincome(loss)tonetcash provided(used)byoperatingactivities: Operatingincome(loss)31,220$(595,069)$594,802$(1,049,106)$195,089$(823,064)$89,630$ Adjustmentstoreconcileoperatingincome(loss)to netcashprovided(used)byoperatingactivities: Depreciationandamortization 514,710 1,106,532 46,922 442,930 3,185 2,114,279 27,897 Changesinassetsandliabilities: (Increase)decreaseinaccountsreceivable,net 5,673 (11,452)-18,598 (3,507)9,312 - (Increase)decreaseinspecialassessmentsreceivable (31,118)----(31,118)- (Increase)decreaseininventory --(11,102)--(11,102)- (Increase)decreaseinprepaiditems (1,267)(3,474)(946)(51,541)(107)(57,335)(94) Increase(decrease)inaccountsandcontractspayable (44,035)160,812 204,927 (213,653)123 108,174 84,680 Increase(decrease)inotherliabilities --312 --312 - Increase(decrease)induetoothergovernmentalunits (85)-2,886 (937)(11,089)(9,225)73 Increase(decrease)incompensatedabsences (3,216)-5,829 2,207 (2,630)2,190 - Netcashprovided(used)byoperatingactivities 471,882 657,349 843,630 (851,502)181,064 1,302,423 202,186 Scheduleofnoncashinvesting,capitaland financingactivities: Increase(Decrease)infairvalueofinvestments 87,130$31,339$17,070$(3,048)$9,390$141,881$24,097$ Thenotestothefinancialstatementsareanintegralpartofthisstatement. Business-TypeActivities–EnterpriseFunds 31 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES ThebasicfinancialstatementsoftheCityofMonticello,Minnesota(thecity) havebeenpreparedinconformitywithaccountingprinciples(GAAP)generally acceptedintheUnitedStatesofAmericaasappliedtogovernmentalunits,as appliedbytheGovernmentalAccountingStandardsBoard(GASB).GASBis theacceptedstandard-settingbodyforestablishinggovernmentalaccounting andfinancialreportingprinciples.Thesignificantaccountingpoliciesofthecity aredescribedasfollows: A.Reportingentity TheCityofMonticellowasincorporated1856andisunderMinnesotaStatutes withamayor-councilformofgovernment.Thefive-membermayor-councilis electedonstaggered,even-numberedyears.Councilorsareelectedat-large tofour-yeartermswhilethemayoriselectedtoatwo-yearterm.The governingbodyappointsanadministratortoimplementpoliciesandoversee dailyoperations. Theaccompanyingfinancialstatementsincludeallfunds,departments, agencies,boards,commissions,andotherorganizationsthatcomprisethe city,alongwithanycomponentunits. Componentunitsarelegallyseparateentitiesforwhichthecity(primary government)isfinanciallyaccountable,orforwhichtheexclusionofthe componentunitwouldrenderthefinancialstatementsoftheprimary governmentmisleading.Thecriteriausedtodetermineiftheprimary governmentisfinanciallyaccountableforacomponentunitincludeswhether ornottheprimarygovernmentappointsthevotingmajorityofthepotential componentunit’sgoverningbody,isabletoimposeitswillonthepotential componentunit,isinarelationshipoffinancialbenefitorburdenwiththe potentialcomponentunit,orisfiscallydependeduponbythepotential componentunit. TheMonticelloEconomicDevelopmentAuthority(EDA)isfiscallydependent uponthecity,anditsgoverningbodyconsistsofcitycouncilmembersand othermembersappointedbythecitycouncil.Thecityisabletoimposeitswill ontheEDAbysignificantlyinfluencingtheprograms,projects,activities,or levelofservicesperformedorprovidedbytheEDA.Thereisapotentialforthe EDAtoprovidespecificfinancialbenefitsto,orimposespecificburdenson, thecity.Therefore,theEDAisincludedasacomponentunitofthecity.The EDA’sfinancialdatahasbeenblendedwiththatofthecity(i.e.reportedas thoughitsfundswerefundsofthecity)andreportedasaspecialrevenue fund. Themayorandcouncilareresponsibleforappointingsomemembersofother organizations.However,thecity’saccountabilityfortheseorganizationsdoes notextendbeyondmakingappointments. B.Government-wideandfundfinancialstatements Thegovernment-widefinancialstatements(i.e.,thestatementofnetposition andthestatementofactivities)reportinformationonallofthenon-fiduciary activitiesoftheprimarygovernmentanditscomponentunit.Forthemostpart, theeffectofinter-fundactivityhasbeenremovedfromthesestatements. Governmentalactivities,whichnormallyaresupportedbytaxesand intergovernmentalrevenues,arereportedseparatelyfrombusiness-type activities,whichrelytoasignificantextentonfeesandchargesforsupport. Thestatementofactivitiesdemonstratesthedegreetowhichthedirect expensesofagivenfunctionorsegmentisoffsetbyprogramrevenues.Direct expensesarethosethatareclearlyidentifiablewithaspecificfunction. Programrevenuesinclude1)chargestocustomersorapplicantswho purchase,use,ordirectlybenefitfromgoods,services,orprivilegesprovided byagivenfunctionorsegmentand2)grantsandcontributionsthatare restrictedtomeetingtheoperationorcapitalrequirementsofaparticular functionorsegment.Taxesandotheritemsnotproperlyincludedamong programrevenuesarereportedinsteadasgeneralrevenues. Separatefinancialstatementsareprovidedforgovernmentalfundsand proprietaryfunds.Majorindividualgovernmentalfundsandmajorindividual enterprisefundsarereportedasseparatecolumnsinthefundfinancial statements. Thecityappliesrestrictedresourcesfirstwhenanexpenseisincurredfor whichbothrestrictedandunrestrictedresourcesareavailable.Depreciation expenseisincludedinthedirectexpenseofeachfunction.Interestandlong- termdebtisconsideredanindirectexpenseandisreportedseparatelyonthe StatementofActivities. Aggregatedinformationfortheremainingnonmajorfundsarereportedin singlecolumnsintherespectivefundfinancialstatements. 32 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO C.Measurementfocus,basisofaccounting,andfinancialstatement presentation Thegovernment-widefinancialstatementsarereportedusingtheeconomic resourcesmeasurementfocusandtheaccrualbasisofaccounting,asarethe proprietaryfundfinancialstatements.Revenuesarerecordedwhenearned andexpensesarerecordedwhenaliabilityisincurred,regardlessofthetiming ofrelatedcashflows.Propertytaxesandspecialassessments,iflevied,are recognizedasrevenuesintheyearforwhichtheyarelevied.Grantsand similaritemsarerecognizedasrevenueassoonasalleligibilityrequirements imposedbytheproviderhavebeenmet. Governmentalfundfinancialstatementsarereportedusingthecurrent financialresourcesmeasurementfocusandthemodifiedaccrualbasisof accounting.Revenuesarerecognizedassoonastheyarebothmeasurable andavailable.Revenuesareconsideredavailablewhentheyarecollectible withthecurrentperiodorsoonenoughthereaftertopayliabilitiesofthe currentperiod.Forthispurpose,thecityconsidersrevenuetobeavailableif theyarecollectedwithin60daysoftheendofthecurrentfiscalperiod. Expendituresgenerallyarerecordedwhenaliabilityisincurred,asunder accrualaccounting.However,debtserviceexpenditures,aswellas expendituresrelatedtoclaimsandjudgments,andcompensatedabsences, whicharerecognizedasexpenditurestotheextenttheyhavematured.Capital assetacquisitionsarereportedascapitaloutlayexpendituresinthe governmentalfunds.Proceedsfromlong-termdebtarereportedarereported asotherfinancingsources. Propertytaxes,franchisetaxes,licenses,andinvestmentinterestassociated withthecurrentfiscalperiodareallconsideredtobesusceptibletoaccrual andhavebeenrecognizedasrevenuesofthecurrentfiscalperiod.Allother revenueitemsareconsideredtobemeasurableandavailableonlywhencash isreceivedbythecity. Sincegovernmentalfundstatementsarepresentedusingameasurement focusandbasisofaccountingdifferentfromthatusedinthegovernment-wide statements’governmentalcolumn,areconciliationispresentedthatbriefly explainstheadjustmentsnecessarytoreconcileendingnetpositionandthe changeinnetposition. Inthefundfinancialstatements,financialtransactionsandaccountsofthecity areorganizedonthebasisoffunds.Theoperationofeachfundisconsidered tobeanindependentfiscalandseparateaccountingentity,withaself- balancingsetofaccountsrecordingcashand/orotherfinancialresources togetherwithallrelatedliabilitiesandresidualequitiesorbalances,and changestherein,whicharesegregatedforthepurposeofcarryingonspecific activitiesorattainingcertainobjectivesinaccordancewithspecialregulations, restriction,orlimitations. MajorGovernmentalFunds–Themajorgovernmentalfundsreportedbythe cityareasfollows: GeneralFund –TheGeneralFundisusedtoaccountforallfinancial resourcesexceptthoserequiredtobeaccountedforinanotherfund. CommunityCenterFund –TheCommunityCenter(specialrevenue)Fund accountsfortherevenuesandexpendituresrelatedtothecommunity center.Inadditiontoapropertytaxallocation,thecommunitycenter generatessignificantrevenuefromchargesformemberships,program activities,andspacerentals. EconomicDevelopmentAuthority(EDA)Fund –TheEDA(special revenue)Fundisusedtoaccountforrevenuesandexpendituresrelated totheblendedcomponentunit.Taxincrements,generatedmainlyby economicandredevelopmentdistricts,aretheEDA’sprimaryrevenue source. DebtServiceFund –TheDebtServiceFundisusedtoaccountforthe accumulationofresourcesforandthepaymentoflong-termdebt principal,interest,andrelatedcosts. ParksandPathwayDedicationFund –Thiscapitalprojectsfundisused toaccountforfinancialresourcestobeusedfortheacquisitionor constructionofparkandpathwayfacilities. CapitalProjectsFund –TheCapitalProjectsFundisusedtoaccountfor financialresourcestobeusedfortheacquisitionorconstructionofmajor capitalfacilities(otherthanthosefinancedbyproprietaryfunds). MajorProprietaryFunds–Thecityreportsthefollowingmajorproprietary funds: WaterFund –TheWater(enterprise)Fundisusedtoaccountforall activitiesnecessarytoprovidewaterservicestotheresidentsand businessesofthecity. SewageFund –TheSewage(enterprise)Fundisusedtoaccountforall activitiesnecessarytoprovidesewageservicestotheresidentsand businessesofthecity. 33 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO LiquorFund –TheLiquor(enterprise)Fundisusedtoaccountforthe operationsofthecity’sliquorstore. FiberOpticsFund –TheFiberOptics(enterprise)Fundisusedtoaccount forallactivitiesnecessarytoprovidefiberopticservicestotheresidents andbusinessesofthecity. DeputyRegistrarFund –TheDeputyRegistrar(enterprise)Fundisused toaccountfortheoperationofcity’sdepartmentofmotorvehicles. Additionally,thecityreportsthefollowingfundtype: InternalServiceFunds –Thesefundsaccountforthecity’scentral informationtechnologyandcentralequipmentservices.Internalservice fundsoperateinamannersimilartoenterprisefunds;however,they provideservicesprimarilytootherdepartmentswithinthecity. Asageneralrule,theeffectofinter-fundactivityhasbeeneliminatedfromthe government-widefinancialstatements.Exceptionstothisgeneralruleare chargesbetweenthecity’senterprisefundsandvariousotherfunctionsofthe city.Eliminationofthesechargeswoulddistortthedirectcostsandprogram revenuesofthevariousfunctionsconcerned. Amountsreportedasprogramrevenuesinclude1)chargestocustomersor applicantsforgoods,services,orprivilegesprovided,2)operatinggrantsand contributions,and3)capitalgrantsandcontributions,includingspecial assessments.Internallydedicatedresourcesarereportedasgeneral revenuesratherthanasprogramrevenues.Likewise,generalrevenues includealltaxesthecityhastheauthoritytoimpose. Proprietaryfundsdistinguishoperatingrevenuesandexpensesfromnon- operatingitems.Operatingrevenuesandexpensesgenerallyresultfrom providingservicesandproducinganddeliveringgoodsinconnectionwitha proprietaryfund’sprincipalongoingoperations.Theprincipaloperating revenuesofthecity’senterpriseandinternalservicefundsarechargesto customersforsalesandservices.Operatingexpensesforenterpriseand internalservicefundsincludecostofsalesandservices,administrative expenses,anddepreciationoncapitalassets.Allrevenueandexpensesnot meetingthisdefinitionarereportedasnon-operatingrevenuesandexpenses. Aggregatedinformationfortheinternalservicefundsisreportedinasingle columnintheproprietaryfundfinancialstatements.Becausetheprincipaluser oftheinternalservicesistheCity’sgovernmentalactivities,thefinancial statementsoftheinternalservicefundsareconsolidatedintothe governmentalcolumnwhenpresentedinthegovernment-widefinancial statements.Thecostoftheseservicesisreportedintheappropriatefunctional activity. D.CashandInvestments Cashandinvestmentsincludebalancesfromallfundsthatarecombinedand investedtotheextentavailableinsavingsaccounts,certificatesofdeposit, U.S.governmentobligations,andothersecuritiesauthorizedbystatestatutes. Earningsfrominvestmentsareallocatedtotherespectivefundsonthebasis ofapplicableparticipationbyeachfund.Investmentsaregenerallystatedat fairvalue,exceptforinvestmentsin2a7-likeexternalinvestmentpools,which arestatedatamortizedcost.Short-termhighlyliquiddebtinstruments (includingcommercialpaper,banker’sacceptances,andU.S.treasuryand agencyobligations)purchasedwitharemainingmaturityofoneyearorless arereportedatamortizedcost.InvestmentincomeisaccruedattheBalance Sheetdate. E.Receivables Utilityandmiscellaneousaccountsreceivablearereportedatgross.Sincethe cityisgenerallyabletocertifydelinquentamountstothecountyforcollection asspecialassessments,noallowanceforuncollectibleaccountshasbeen providedoncurrentreceivables. Thecityutilizesanallowanceforuncollectibleaccountstovalueitsreceivables onlyintheFiberOpticsProprietaryFund.Account(trade)receivablesare carriedatoriginalbillingamountlessanestimatemadefordoubtful receivablesbasedonareviewofalloutstandingamountsonaregularbasis. Managementdeterminestheallowancefordoubtfulaccountsbyidentifying troubledaccountsandbyusinghistoricalexperienceappliedtoanagingof accounts.Withapprovalcouncil,tradereceivablesarewrittenoffwhen deemeduncollectible.Recoveriesoftradereceivablespreviouslywrittenoff arerecordedwhenreceived. Areceivableisconsideredpastdueifanyportionofthereceivablebalanceis outstandingformorethan30days.Interestischargedonreceivablesthatare outstandingformorethan30days.Accrualofinterestisnotsuspendeduntila receivableisdeterminedtobeuncollectible.Provisionsforbaddebtswould beinsignificantandnonehasbeenmadefor2014. Interestreceivableisrecordedasrevenueintheyeartheinterestisearned andisavailabletopayliabilitiesofthecurrentperiod.Theinterestreceivable 34 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO balanceisreportedasoneamountintheGeneralFundwhileallotherfunds receiveinterestrevenuedistributionsincash. F.NotesReceivable Notesreceivableconsistprimarilyofloansmadebythecitytoarea businessesfordevelopmentorredevelopmentpurposes.Thetermsand interestratesoftheindividualloansvary.Somenotesreceivableareoffsetby deferredinflowsofresourcesinthegovernmentalfunds. Thecityhasonenotereceivabletotaling$600,000withanotherlocal government.Thisnotehasaninterestrateof3.95percentandwillmatureat variousdatesthroughJanuary2016.Thisnotereceivableisoffsetbydeferred inflowsofresources. G.PropertyTaxes Propertytaxleviesaresetbythecitycouncileachyear,andarecertifiedto WrightCountyforcollectioninthefollowingyear.InMinnesota,countiesactas collectionagentsforallpropertytaxes. WrightCountyspreadsallleviesovertaxableproperty.Suchtaxesbecomea lienonJanuary1andarerecordedasreceivablesbythecityonthatdate. PropertytaxesmaybepaidbytaxpayersintwoequalinstallmentsonMay15 andOctober15.WrightCountyprovidestaxsettlementstocitiesandother taxingdistrictsseveraltimesthroughouttheyear.Taxeswhichremainunpaid atDecember31areclassifiedasdelinquenttaxesreceivableandareoffsetby deferredinflowsofresourcesinthegovernmentalfundsfinancialstatements. Withinthegovernmentalfundfinancialstatements,thecityrecognizes propertytaxrevenuewhenitbecomesbothmeasurableandavailableto financeexpendituresofthecurrentperiod.Theportionofdelinquenttaxesnot collectedbythecityinJanuaryisfullyoffsetbydeferredinflowsofresources becauseitisnotavailabletofinancecurrentexpenditures.Deferredinflowsof resourcesingovernmentalactivitiesaresusceptibletofullaccrualonthe government-widefinancialstatements. H.SpecialAssessments Specialassessmentsareleviedagainstthebenefitedpropertiesforthe assessablecostsofspecialassessmentimprovementprojectsinaccordance withMinnesotaStatutes.Thecityusuallyadoptsassessmentrollswhen individualpublicimprovementprojectsarecompleteorsubstantiallycomplete. Theassessmentsarecollectibleoveratermofyearsgenerallyconsistentwith thetermofyearsoftherelatedbondissue. Collectionofannualinstallments(includinginterest)ishandledbythecounty inthesamemanneraspropertytaxes.Propertyownersareallowedtoprepay totalfutureinstallmentswithoutinterestorprepaymentpenalties. Onceaspecialassessmentrollisadopted,theamountattributedtoeach parcelisalienuponthatpropertyuntilfullpaymentismadeortheamountis determinedtobeexcessivebythecitycouncilorcourtaction.Ifspecial assessmentsareallowedtogodelinquent,thepropertyissubjecttotax forfeitedsaleandthefirstproceedsofthatsale(aftercosts,penalties,and expensesofsale)areremittedtothecityinpaymentofdelinquentspecial assessments.Generally,thecitywillcollectthefullamountofitsspecial assessmentsnotadjustedbycitycouncilorcourtaction.Pursuanttostate statutes,apropertyshallbesubjecttotaxforfeitsaleafterthreeyearsof delinquencyexceptforhomesteaded,agriculturalorseasonalrecreational property,whichissubjecttosaleafterfiveyears. Theseassessmentsarerecordedasdelinquent(levied,butunremitted)and deferred(certified,butnotyetlevied)specialassessmentsreceivable,andare offsetbydeferredinflowsofresourcesinthegovernmentalfundfinancial statements. UnremittedspecialassessmentamountscollectedbyWrightCountyare recordedinduefromothergovernmentunits. I.Inventories Theinventoriesoftheproprietaryfundsarestatedatcostonthefirst-in,first- outbasis.Enterprisefundinventoryconsistsofmerchandiseheldforresaleat theHi-WayLiquorStore. J.PrepaidItems Paymentstovendorsforservicesthatwillbenefitfutureaccountingperiods arerecordedasprepaid.Prepaiditemsareaccountedforusingthe consumptionmethod.Fundbalanceinanamountequaltotheprepaidbalance intherelatedfundsisnotavailableforappropriation. K.LandHeldforResale Landheldforresaleisrecordedinthegovernmentalfundwhichpurchasedit atthelowerofcostormarket.Fundbalancesarenonspendableorrestricted 35 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO inanamountequaltotheland’scarryingvalueisreportedinthegovernmental fundsastheseassetsarenotavailableforappropriation. L.CapitalAssets Capitalassets,whichincludeproperty,plant,equipment,andinfrastructure assets(roads,bridges,sidewalks,andsimilaritems)arereportedinthe applicablegovernmentalorbusiness-typeactivitiescolumnsinthe government-widefinancialstatements.Suchassetsarecapitalizedathistorical cost,orestimatedhistoricalcostforassetswhereactualhistoricalcostisnot available.Donatedassetsarerecordedascapitalassetsattheirestimatedfair marketvalueatthedateofdonation.Thecityrestructuredthecapitalization policywhichhadasinglethresholdlevelof$5,000ormoreforcapitalizing capitalassets.Therestructuredpolicydivideseachassetintoaclasswitha relatedthresholdasfollows: ClassofAsset ThresholdLevel Land $1 Landimprovements $50,000 Building/buildingimprovements $20,000 Primaryinfrastructureandutility $75,000 Secondaryinfrastructure $25,000 Equipment $10,000 Softwareandnon-tangible $10,000 Thecostofnormalmaintenanceandrepairsthatdoesnotaddtothevalueof theassetormateriallyextendassetlivesisnotcapitalized.Thecityhas electedtofullycapitalizetheinfrastructurecapitalassetsofitsgovernmental activitiesregardlessoftheiracquisitiondateoramount. Capitalassetsarerecordedinthegovernment-wideandproprietaryfund financialstatements,butarenotreportedinthegovernmentalfundsfinancial statements.Interestincurredduringtheconstructionphaseofcapitalassets forbusiness-typeactivitiesisincludedaspartofthecapitalizedvalueofthe assetsconstructed. Capitalassetsaredepreciatedusingthestraight-linemethodovertheir estimatedusefullives.Sincesurplusassetsaregenerallysoldforan immaterialamountwhendeclaredasnolongerneededforcitypurposes,no salvagevalueistakenintoconsiderationfordepreciationpurposes.Useful livesvaryfrom10to40yearsforinfrastructure;5to20yearsforvehicles, machinery,andfurnitureandequipment;12to40yearsforbuildings;and10 to20yearsforimprovementsotherthanbuildings.Capitalassetsnotbeing depreciatedincludelandandconstructioninprogress. M.DeferredInflowsofResources Inadditiontoliabilities,statementsoffinancialpositionorbalancesheetswill sometimesreportaseparatesectionfordeferredinflowsofresources.This separatefinancialstatementelementrepresentsanacquisitionofnetposition thatappliestofutureperiodsandsowillnotberecognizedasaninflowof resources(revenue)untilthattime.Thecityhasonlyonetypeofitem,which arisesunderamodifiedaccrualbasisofaccounting,whichqualifiesfor reportinginthiscategory.Accordingly,theitem,unavailablerevenue,is reportedonlyinthegovernmentalfundsBalanceSheet.Thegovernmental fundsreportunavailablerevenuefromthreesources:propertytaxes,special assessments,andnotesreceivablesnotcollectedwithin60daysofyear-end. Theseamountsaredeferredandrecognizedasaninflowofresourcesinthe periodtheamountsbecomeavailable. N.Long-TermLiabilities Inthegovernment-wideandproprietaryfundfinancialstatements,long-term debtandotherlong-termobligationsarereportedasliabilities.Bondpremiums anddiscounts,ifmaterial,aredeferredandamortizedoverthelifeofthe bondsusingthestraight-linemethod. Inthefundfinancialstatements,governmentalfundtypesrecognizebond premiumsanddiscountsduringthecurrentperiod.Thefaceamountofdebt issuedisreportedasotherfinancingsources.Premiumsreceivedondebt issuancesarereportedasotherfinancingsourceswhilediscountsondebt issuancesarereportedasotherfinancinguses.Issuancecosts,whetherornot withheldfromtheactualdebtproceedsreceived,arereportedasdebtservice expenditures. O.CompensatedAbsencesPayable Cityemployeesearnvacationdaysbaseduponthenumberofcompleted yearsofservice.Thecitycompensatesemployeesforunusedvacationupon terminationofemployment.Employeesareentitledtopaidsickleaveat variousratesforeachmonthoffull-timeservice.Full-timeemployeeswho resignorleavecityemploymentvoluntarilyandingoodstanding,aftergiving 36 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO propernotice,shallbecompensatedforupto50daysofunusedsickleave underthefollowingguidelines: Forunionemployees,one-fourthoftheunusedsickleavetimesthehourlyrate atthetimeofgivingnoticeispaid.Afterfiveyearsofnon-unionemployment, one-fourthoftheunusedsickleavetimesthehourlyrateatthetimeofgiving noticeispaid. After10yearsofemployment,allemployeesaccrueone-halfoftheunused sickleave,timesthehourlyrateatthetimeofgivingnotice. Allcompensatedabsencesareaccruedwhenincurredinthegovernment-wide andproprietaryfundfinancialstatements.Aliabilityfortheseamountsis reportedingovernmentalfundsonlyiftheyhavematured,forexample,asa resultofemployeeresignationsandretirements. P.Budget BudgetsfortheGeneralFundandmajorspecialrevenuefundsareadopted onabasisconsistentwithaccountingprinciplesgenerallyacceptedinthe UnitedStatesofAmerica.Reportedbudgetamountsareasoriginallyadopted orasamendedbycitycouncil-approvedsupplementalappropriationsand budgettransfers.Nosupplementalbudgetamendmentswereadoptedduring theyear.Budgetappropriationslapseatyear-end.Thelegallevelofbudgetary controlisatthedepartmentlevelintheGeneralFundandatthefundlevelin themajorspecialrevenuefunds. Q.StatementofCashFlows ForpurposesoftheStatementofCashFlows,thecityconsidersallhighly liquiddebtinstrumentswithanoriginalmaturityfromthetimeofpurchaseby thecityofthreemonthsorlesstobecashequivalents.Theproprietaryfund’s equityinthegovernment-widecashandinvestmentmanagementpoolis consideredtobecashequivalent. R.NetPosition Inthegovernment-wideandproprietaryfundfinancialstatements,netposition representsthedifferencebetweenassetsanddeferredoutflowsofresources (ifany),liabilities,anddeferredinflowsofresources.Netpositionisdisplayed inthreecomponents: •NetInvestmentinCapitalAssets –Consistsofcapitalassets,net ofaccumulateddepreciation,reducedbyanyoutstandingdebt attributabletoacquirecapitalassets. •RestrictedNetPosition –Consistsofnetpositionrestrictedwhen therearelimitationsimposedontheirusethroughexternal restrictionsimposedbycreditors,grantors,orlawsorregulationsof othergovernments. •UnrestrictedNetPosition –Allothernetpositionthatdoesnotmeet thedefinitionof“restricted”or“netinvestmentincapitalassets.” S.FundBalanceClassifications Inthefundfinancialstatements,governmentalfundsreportfundbalancein classificationsthatdiscloseconstraintsforwhichamountsinthosefundscan bespent.Theseclassificationsareasfollows: •Nonspendable –Consistsofamountsthatarenotinspendable form,suchasprepaiditems,inventory,andotherlong-termassets. •Restricted –Consistsofamountsrelatedtoexternallyimposed constraintsestablishedbycreditors,grantors,orcontributors;or constraintsimposedbystatestatutoryprovisions. •Committed –Consistsofinternallyimposedconstraintsthatare establishedbycitycouncilresolution.Thosecommittedamounts cannotbeusedforanyotherpurposeunlesstheCityCouncil removesorchangesthespecifiedusebytakingthesametypeof actionitemployedtopreviouslycommitthoseamounts. •Assigned –Consistsofinternallyimposedconstraints.These constraintsconsistofamountsintendedtobeusedbythecityfor specificpurposesbutdonotmeetthecriteriatobeclassifiedas restrictedorcommitted.Ingovernmentalfunds,assignedamounts representintendedusesestablishedbythegoverningbodyitselfor byanofficialtowhichthegoverningbodydelegatestheauthority. Pursuanttocitycouncilresolution,thecouncil,cityadministrator,or financedirectorareauthorizedtoestablishassignmentsoffund balance. •Unassigned –TheresidualclassificationfortheGeneralFundwhich alsoreflectsnegativeresidualamountsinotherfunds. 37 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO Whenbothrestrictedandunrestrictedresourcesareavailableforuse,itisthe city’spolicytofirstuserestrictedresources,thenuseunrestrictedresources astheyareneeded. Whencommitted,assigned,orunassignedresourcesareavailableforuse,it isthecity’spolicytouseresourcesinthefollowingorder:1)committed,2) assigned,and3)unassigned. T.UseofEstimates Thepreparationoffinancialstatementsinconformitywithaccounting principlesgenerallyacceptedintheUnitedStatesofAmericarequires managementtomakeestimatesandassumptionsthataffectthereported amountsofassetsandliabilitiesanddisclosureofcontingentassetsand liabilitiesatthedateofthefinancialstatementsandthereportedamountsof revenuesandexpenses/expendituresduringthereportingperiod.Actual resultscoulddifferfromthoseestimates. U.Budget ExpendituresexceededbudgetedamountsintheEDASpecialRevenueFund by$641,960.ThetaxincrementportionoftheEDAFundfunctionslikea capitalprojectsfundwithexpendituresbasedonthelifecycleofthetax incrementdistrict. V.FutureChangeinAccountingStandards GASBStatementNo.68replacestherequirementsofGASBStatementNo. 27,AccountingforPensionsbyStateandLocalGovernmentalEmployers,and StatementNo.50,PensionDisclosures,astheyrelatetogovernmentsthat providepensionsthroughpensionplansadministeredastrustsorsimilar arrangementsthatmeetcertaincriteria.GASBStatementNo.68requires governmentsprovidingdefinedbenefitpensionstorecognizetheirlong-term obligationforpensionbenefitsasaliabilityforthefirsttime,andtomore comprehensivelyandcomparablymeasuretheannualcostsofpension benefits.ThisstatementwillbeeffectiveforfiscalyearsbeginningafterJune 15,2014.Thecityhasnotyetdeterminedthefinancialimpactofadoptingthis newstandard. NOTE2.CASH,CASHEQUIVALENTS,ANDINVESTMENTS A.ComponentsofCashandInvestments Cashandinvestmentsatyear-endconsistofthefollowing: Deposits 8,568,608$ Investments 19,898,832 Cashonhand 10,194 Totalcashandinvestments–StatementofNetPosition 28,477,634$ CashandinvestmentsarereflectedontheStatementofNetPositionas follows: Cashandinvestments–StatementofNetPosition 28,477,634$ B.Deposits InaccordancewithapplicableMinnesotaStatutes,thecitymaintainsdeposits atdepositorybanksauthorizedbythecitycouncil,includingcheckingaccounts andnon-negotiablecertificatesofdeposit. Thefollowingisconsideredthemostsignificantriskassociatedwithdeposits. CustodialCreditRisk –Inthecaseofdeposits,thisistheriskthatinthe eventofabankfailure,thecity’sdepositsmaybelost. MinnesotaStatutesrequirethatalldepositsbeprotectedbyfederal depositinsurance,corporatesuretybond,orcollateral.Themarketvalue ofcollateralpledgedmustequal110percentofthedepositsnotcovered byfederaldepositinsuranceorcorporatesuretybonds.Authorized collateralincludestreasurybills,notes,andbonds;issuesofU.S. governmentagencies;generalobligationsrated“A”orbetter;revenue obligationsrated“AA”orbetter;irrevocablestandardlettersofcredit issuedbytheFederalHomeLoanBank;andcertificatesofdeposit. MinnesotaStatutesrequirethatsecuritiespledgedascollateralbeheldin safekeepinginarestrictedaccountattheFederalReserveBankorinan accountatatrustdepartmentofacommercialbankorotherfinancial institutionthatisnotownedorcontrolledbythefinancialinstitution 38 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO furnishingthecollateral.Thecity’sinvestmentpolicydoesnotprovide furtherrequirementsregardingcustodialcreditrisk. Atyear-end,thecarryingamountofthecity’sdepositswas8,568,608 whilethebalanceonbankrecordswas8,571,262.Alldepositswere coveredbyfederaldepositoryinsurance,suretybonds,orbycollateral heldbythecity’sagentinthecity’sname. C.Investments No Less More Percentof InvestmentType RatingAgency Maturity Than1 1to5 5to10 Than10 Total Holdings U.S.agencysecurities FederalFarmCreditBank AA+S&P –$–$–$483,812$–$483,812$2.4% FederalAgricultureMortgage Corporation AA+S&P ––––739,325 739,325 3.7% FederalHomeLoanBank AA+S&P –––1,590,432 879,728 2,470,160 12.4% FederalNationalMortgage Association AA+S&P ––148,328 –533,095 681,423 3.4% NegotiablecertificatesofdepositN/R N/A –4,839,458 3,414,082 1,133,624 –9,387,164 47.2% Localgovernmentsecurities AAA S&P ––––1,135,970 1,135,970 5.7% Localgovernmentsecurities AA+S&P ––––1,553,046 1,553,046 7.8% Localgovernmentsecurities BBB S&P –––314,730 –314,730 1.6% Localgovernmentsecurities Aaa Moody’s ––––1,348,415 1,348,415 6.8% Localgovernmentsecurities Aa1 Moody’s ––––1,125,150 1,125,150 5.7% Moneymarketfunds AAAm S&P 607,314 ––––607,314 3.1% 4MFund N/R N/A 52,323 ––––52,323 0.3% Totalinvestments 659,637$4,839,458$3,562,410$3,522,598$7,314,729$19,898,832$100.0% N/A–NotApplicable N/R–NotRated CreditRisk InterestRisk–MaturityDurationinYears CustodialCreditRisk –Forinvestments,thisistheriskthatintheevent ofafailureofthecounterpartytoaninvestmenttransaction(typicallya broker-dealer)thecitywouldnotbeabletorecoverthevalueofits investmentsorcollateralsecuritiesthatareinthepossessionofan outsideparty.Thecity’sinvestmentpolicydoesnotprovideadditional requirementsbeyondstatestatutes,butthecitytypicallylimitsits exposurebypurchasinginsuredorregisteredinvestments,orbythe controlofwhoholdsthesecurities. CreditRisk –Thisistheriskthatanissuerorothercounterpartytoan investmentwillnotfulfillitsobligations.MinnesotaStatuteslimitthecity’s investmentstodirectobligationsorobligationsguaranteedbytheUnited 39 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO Statesoritsagencies;sharesofinvestmentcompaniesregisteredunder theFederalInvestmentCompanyActof1940thatreceivethehighest creditrating,areratedinoneofthetwohighestratingcategoriesbya statisticalratingagency,andalloftheinvestmentshaveafinalmaturityof 13monthsorless;generalobligationsrated“A”orbetter;revenue obligationsrated“AA”orbetter;generalobligationsoftheMinnesota HousingFinanceAgencyrated“A”orbetter;bankers’acceptancesof UnitedStatesbankseligibleforpurchasebytheFederalReserveSystem; commercialpaperissuedbyUnitedStatescorporationsortheirCanadian subsidiaries,ratedofthehighestqualitycategorybyatleasttwonationally recognizedratingagencies,andmaturingin270daysorless;Guaranteed InvestmentContractsguaranteedbyaUnitedStatescommercialbank, domesticbranchofaforeignbank,oraUnitedStatesinsurancecompany, andwithacreditqualityinoneofthetoptwohighestcategories; repurchaseorreversepurchaseagreementsandsecuritieslending agreementswithfinancialinstitutionsqualifiedasa“depository”bythe governmententity,withbanksthataremembersoftheFederalReserve Systemwithcapitalizationexceeding$10,000,000;thatareaprimary reportingdealerinU.S.governmentsecuritiestotheFederalReserve BankofNewYork;orcertainMinnesotasecuritiesbroker-dealers.The city’sinvestmentpolicydoesnotfurtheraddresscreditrisk. ConcentrationRisk –Thisistheriskassociatedwithinvestinga significantportionofthecity’sinvestment(considered5percentormore) inthesecuritiesofasingleissuer,excludingU.S.guaranteedinvestments (suchastreasuries),investmentpools,andmutualfunds.Thecity’s investmentpolicyrequiresthatnomorethan5percentoftheoverall portfoliomaybeinvestedinthesecuritiesofasingleissuer,exceptforthe securitiesoftheU.S.governmentandinagenciesoranexternal investmentpool.Morethan5percentofthecity’sinvestmentsarein BexarCounty;FederalHomeLoanBank;andKane,Cook,andDuPage counties.Theseinvestmentsare5.6percent,12.4percent,and5.6 percent,respectively,ofthecity’stotalinvestments. InterestRateRisk –Thisistheriskofpotentialvariabilityinthefairvalue offixedrateinvestmentsresultingfromchangesininterestrates(the longertheperiodforwhichaninterestrateisfixed,thegreatertherisk). TheCity’sinvestmentpolicydoesnotfurtheraddressthedurationof investments. TheMinnesotaMunicipalMoneyMarketFund(4MFund)isacommonlaw trustorganizedinaccordancewiththeMinnesotaJointPowersAct,which investsonlyininvestmentinstrumentsallowableunderMinnesotaStatutes.It isanexternalinvestmentpoolnotregisteredwiththeSecuritiesExchange Commission(SEC)thatfollowsthesameregulatoryrulesoftheSECunder rule2a7.Thecity’sinvestmentinthe4MFundismeasuredatthenetasset valuepershareprovidedbythepool,whichisbasedonanamortizedcost methodthatapproximatesfairvalue. NOTE3.CONCENTRATIONOFREVENUES CargillKitchensolutionsisthelargestcustomerofwaterandsewageservices. Thecompany’swaterpurchasesaccountfor$67,447,or6percent,ofWater Fundoperatingrevenue;andthecompany’ssewagechargesaccountfor $334,725,or16.1percent,ofSewageFundoperatingrevenue.Additionally, NorthernStatesPowerCompany’s(XcelEnergy)nettaxcapacityforproperty taxespayablein2014is$9,285,841,or48.8percent,ofthetotalnetcapacity of$19,021,771.Accordingly,XcelEnergy’sshareofthe$8.15millioncity propertytaxlevyis$3.98million.ThetaxcapacityonJanuary1,2014,is basedonmarketvaluescertifiedtothestateonJanuary1,2013. Consequently,in2013,XcelEnergyupratedenergyproducingassetsatits Monticellonuclearplant,increasingthecompany’snettaxcapacityto $14,453,109,or60.5percent,ofthe$23,882,689totaltaxcapacityfortaxes payablein2015. NOTE4.CLAIMSANDJUDGMENTS Thecityparticipatesinanumberoffederalandstateprogramsthatarefullyor partiallyfundedbygrantsreceivedfromothergovernmentalunits. Expendituresfinancedbygrantsaresubjecttoauditbytheappropriategrantor government.Ifexpendituresaredisallowedduetononcompliancewithgrant programregulations,thecitymayberequiredtoreimbursethegrantor government. AsofDecember31,2014,significantamountsofgrantexpenditureshavenot beenauditedbythegrantingagency,butthecitybelievesthatdisallowed expendituresdiscoveredinsubsequentaudits,ifany,willnothaveamaterial effectonanyoftheindividualfundsortheoverallfinancialpositionofthecity. 40 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO NOTE5.CAPITALASSETS CapitalassetactivitiesfortheyearendDecember31,2014areasfollows: January1,TransfersandDecember31, Beginning Completed Ending InternalServiceGovernmentalInternalServiceGovernmental Balance Additions Deletions Construction Balance FundAssets FundsTotal FundAdditions FundAdditions Governmentalactivities Nondepreciablecapitalassets: Land 11,919,531$1,905,625$–$–$13,825,156$–$13,825,156$–$1,905,625$ Constructioninprogress 3,492,384 674,885 –(2,425,196)1,742,073 –1,742,073 –674,885 Totalcapitalassets,notdepreciated 15,411,915 2,580,510 –(2,425,196)15,567,229 –15,567,229 –2,580,510 Depreciablecapitalassets: Buildingsandsystems 88,061,229 261,605 –2,425,196 90,748,030 –90,748,030 –261,605 Machineryandequipment 4,707,040 621,497 ––5,328,537 673,504 4,655,033 561,491 60,006 Totalcapitalassets,depreciated 92,768,269 883,102 –2,425,196 96,076,567 673,504 95,403,063 561,491 321,611 Lessaccumulateddepreciationfor: Buildingsandsystems (37,753,543)(3,875,813)––(41,629,356)–(41,629,356)–(3,875,813) Machineryandequipment (3,492,821)(219,806)––(3,712,627)(39,604)(3,673,023)(27,897)(191,909) Totalaccumulateddepreciation (41,246,364)(4,095,619)––(45,341,983)(39,604)(45,302,379)(27,897)(4,067,722) Netcapitalassets,depreciated 51,521,905 (3,212,517)–2,425,196 50,734,584 633,900 50,100,684 533,594 (3,746,111) Totalgovernmentalactivities netcapitalassets 66,933,820$(632,007)$–$–$66,301,813$633,900$65,667,913$533,594$(1,165,601)$ Business-typeactivities 1,197,945$–$–$–$1,197,945$ Constructioninprogress 2,407,995 464,680 –(364,963)2,507,712 Totalcapitalassets,notdepreciated 3,605,940 464,680 –(364,963)3,705,657 Buildingsandsystems 77,159,690 ––114,362 77,274,052 Machineryandequipment 2,241,362 192,475 (134,469)250,601 2,549,969 79,401,052 192,475 (134,469)364,963 79,824,021 Buildingsandsystems (34,455,788)(1,984,238)––(36,440,026) Machineryandequipment (1,645,076)(130,041)41,017 –(1,734,100) (36,100,864)(2,114,279)41,017 –(38,174,126) Netcapitalassets,depreciated 43,300,188 (1,921,804)(93,452)364,963 41,649,895 Totalbusiness-typeactivities 46,906,128$(1,457,124)$(93,452)$–$45,355,552$netcapitalassets Land Totalaccumulateddepreciation Nondepreciablecapitalassets: Depreciablecapitalassets: Totalcapitalassets,depreciated Lessaccumulateddepreciationfor: 41 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO DepreciationfortheyearendedDecember31,2014waschargedto function/programsasfollows: Governmentalactivities Generalgovernment 44,047$ Publicsafety 82,953 Publicworks 3,430,647 Recreationandculture 510,075 CapitalassetsheldbytheCity’sinternalservicefunds– chargedtothevariousfunctionsbasedonusageofassets 27,897 Totaldepreciationexpense–governmentalactivities 4,095,619$ Business-typeactivities Water 514,710$ Sewer 1,106,532 Liquor 46,922 FiberNet 442,930 Deputyregistrar 3,185 Totaldepreciationexpense–business-typeactivities 2,114,279$ NOTE6.COMMITMENTS Duringfiscal2014,thecityawardedcontractsforvariousconstructionand remodelingprojects.Thecity’scommitmentsforuncompletedworkonthese contractsatDecember31,2014areapproximatelyasfollows: SewageFund Treatmentplantupgrades $383,950 CapitalProjectsFund Streetconstruction–7th Street $81,000 NOTE7.LONG-TERMLIABILITIES A.Description Thecityhasthefollowingtypesoflong-termliabilitiesoutstandingatDecember 31,2014:generalobligation(G.O.)bonds,specialassessmentimprovement bondswithgovernmentalcommitment,revenuebonds,compensatedabsences, andnetotherpost-employmentbenefits(OPEB)obligation. •GeneralObligationBonds –Threeofthefouroutstandinggeneral obligationbondissuesfinancedstreetimprovementprojectsand constructionatthewastewatertreatmentplant.Thefourthissue financedasettlementwithtelecommunicationrevenuebondholders andcapitalequipmentpurchasesintheCentralEquipmentFund. •GeneralObligationCertificatesofIndebtedness –Thecityissues generalobligationcertificatesofindebtednesstoprovidefinancingfor capitalequipment.Debtserviceiscoveredbygeneralpropertytaxes. Generalobligationcertificatesofindebtednessaredirectobligations thatpledgethefullfaithandcreditofthecity.Thesecertificates generallyareissuedasfive-yearnoteswithfluctuatingdebtservice paymentseachyear. •SpecialAssessmentBonds –Thesebondsarepayableprimarily fromspecialassessmentsleviedonthepropertiesbenefitingfromthe improvementsfundedbytheseissues.Anydeficienciesinrevenueto fundtheseissueswillbeprovidedfromgeneralpropertytaxes. •RevenueBonds –Thesebondswereissuedforimprovementsor projectsthatdirectlybenefitacityenterpriseactivity.Thedebtissued willberepaidfromuserfeeswhichbenefitfromtheimprovementsor projects. •CompensatedAbsences –Thecityprovidesvacationandsick leavebenefitstocertaineligibleemployees.Theliabilitywillberepaid bytheGeneralFund,CommunityCenterSpecialRevenueFund, WaterFund,LiquorFund,orFiberOpticsFundforwhicheach employeeisemployed. •NetOPEBObligation –Thecityprovidespost-employmentbenefits tocertaineligibleemployeesthroughthecity’sOPEBPlan.The liabilitywillberepaidbasedonapay-as-you-gofinancing requirementaswellasanyadditionalamountsdeterminedannually bythecity.TheliabilitywillberepaidbytheGeneralFund. 42 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO Long-termliabilitiesatyear-endaresummarizedasfollows: Final Interest Maturity Balance– OriginalIssue Rate IssueDate Date EndofYear Governmentalactivities Generalobligationbonds 2007Improvementbonds 5,137,903$4.00%12/27/200702/01/2018 2,193,653$ 2008BSewerrevenuerefundingbond9,270,000$3.40%04/17/200808/01/2018 3,892,000 2014AGeneralobligationbonds: judgmentportion 6,080,000$1.00-3.50%12/18/201412/15/2030 6,080,000 equipmentportion 515,000$1.00-3.05%12/18/201412/15/2024 515,000 Othergeneralobligationdebt 2013ACertificateofindebtedness 500,000$0.35–2.10%04/26/201312/01/2020 385,000 Specialassessmentsbonds 2010AGeneralobligationimprovement andrefundingbonds 3,255,000$0.40–2.70%09/14/201002/01/2021 1,955,000 2011AGeneralobligationrefunding 10,735,000$2.00–3.00%10/19/201102/01/2023 8,055,000 Revenuebonds 2008APublicprojectrevenue refundingbonds 6,180,000$3.20%02/20/200802/01/2015 985,000 Netpremiums(discounts)onbonds 67,350 Compensatedabsencespayable 322,842 NetOPEBobligation 283,561 Totalgovernmentalactivitylong-termliabilities 24,734,406$ Business-typeactivities Generalobligationbonds 2007Improvementbonds 907,097$4.00%12/27/200702/01/2018 386,347$ 2013BWastewatertreatmentbonds 3,000,000$2.00–3.35%12/05/201312/01/2028 2,820,000 Netpremiums(discounts)onbonds 31,941 Compensatedabsencespayable 108,136 Totalbusiness-typeactivitylong-termliabilities 3,346,424$ B.ChangesinLong-TermLiabilities December31,December31,DueWithin 2013 Additions Retirements 2014 OneYear Governmentalactivities Generalobligationbonds 7,506,653$6,595,000$(1,421,000)$12,680,653$1,468,000$ Certificateofindebtedness 445,000 –(60,000)385,000 60,000 Specialassessmentbonds13,010,000 –(3,000,000)10,010,000 2,575,000 Revenuebonds 1,975,000 –(990,000)985,000 985,000 Add Premiumsonbonds 287,196 –(35,701)251,495 – Less Discountsonbonds (214,092)(12,374)42,321 (184,145)– Compensatedabsences 310,579 226,409 (214,146)322,842 86,124 NetOPEBobligation 255,604 34,718 (6,761)283,561 – Total 23,575,940$6,843,753$(5,685,287)$24,734,406$5,174,124$ Business-typeactivities Generalobligationbonds 3,479,347$–$(273,000)$3,206,347$276,000$ Revenuebonds 26,445,000 –(26,445,000)–– Add Premiumsonbonds 37,109 –(2,038)35,071 – Less Discountsonbonds (397,320)–394,190 (3,130)– Compensatedabsences 105,946 86,080 (83,890)108,136 29,431 Total 29,670,082$86,080$(26,409,738)$3,346,424$305,431$ 43 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO C.MinimumDebtPayments Minimumannualprincipalandinterestpaymentstomaturityforbondspayable areasfollows: YearEnding December31,Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2015 1,468,000$375,788$60,000$5,760$2,575,000$187,649$985,000$15,760$276,000$84,158$ 2016 1,926,250 323,380 60,000 5,250 2,590,000 138,000 ––279,750 76,643 2017 1,925,250 264,624 65,000 4,590 985,000 103,267 ––273,750 69,173 2018 1,986,153 203,972 65,000 3,713 995,000 83,674 ––281,847 61,748 2019 415,000 160,609 65,000 2,673 660,000 66,705 ––185,000 56,098 2020-2024 2,220,000 657,401 70,000 1,470 2,205,000 112,227 ––1,000,000 219,480 2025-2029 2,245,000 322,575 ––––––910,000 74,190 2030 495,000 17,325 –––––––– 12,680,653$2,325,674$385,000$23,456$10,010,000$691,522$985,000$15,760$3,206,347$641,490$ Business-TypeActivities RevenueBonds GeneralObligationBonds GeneralObligation Special GovernmentalActivities GeneralObligationBonds CertificateofIndebtedness AssessmentBonds D.ConduitDebt ThecityhasissuedSeniorHousingRefundingRevenueBondstoprovide financialassistancetoprivatesectorentitiesfortheacquisitionandconstruction ofseniorhousingfacilitiesdeemedtobeinthepublicinterest.Thebondsare securedbythepropertyfinancedandarepayablesolelyfrompaymentsreceived ontheunderlyingmortgageloans.Uponrepaymentofthebonds,ownershipof theacquiredfacilitiestransferstotheprivatesectorentityservedbythebond issuance.TheCityisnotobligatedinanymannerforrepaymentofthebonds. Accordingly,thebondsarenotreportedasliabilitiesintheaccompanying financialstatements.AsofDecember31,2014,therewasoneseriesofSenior HousingRefundingRevenueBondsoutstanding.Theoriginalissueamounts totaled$3,000,000withaninterestrateof4.75percent.Thisbalancehasbeen reducedthroughannualpaymentsandpartialcallprepayments.Theoutstanding balanceasofDecember31,2014isundetermined. E.Pay-As-You-GoTaxIncrementNote Thecityhasdevelopmentagreementswithprivatedevelopersforapropertyin thecity’staxincrementdistricts.Aspartoftheagreements,thecityhasagreed toreimbursethedevelopersforcertaincoststhroughpay-as-you-gotax incrementnotes.Thenotesprovideforthepaymentofprincipalequaltothe developers’costs,plusinterestatratesrangingfrom5.0percentto8.5percent (interestaccrualcommencinguponthedevelopercompletingtheproject). Paymentsofthenoteswillbemadeatthelesseroftheschedulednote paymentsortheactualnettaxincrementreceivedduringtheperiodspecified intheagreement.Thenotewillbecanceledattheendoftheagreementterm, whetherithasbeenfullyrepaidornot.Theoutstandingprincipalbalanceof thesenotesasofDecember31,2014is$1,557,889.Thesenotesarenot includedinthecity’slong-termdebt,becauserepaymentisrequiredonlytothe extentsufficienttaxincrementsarereceived.Thecity’spositionisthatthisis anobligationtoassignfutureanduncertainrevenuesourcesand,assuch,is notactualdebtinsubstance. F.ArbitrageRebate InaccordancewiththeprovisionsofSection148(f)oftheInternalRevenue Codeof1986,asamended,bondsmustsatisfycertainarbitragerebate requirements.Positivearbitrageistheexcessof(1)theamountearnedon investmentspurchasedwithbondproceedsover(2)theamountthatsuch investmentswouldhaveearnedhadsuchinvestmentsbeeninvestedatarate equaltotheyieldonthebondissue.Inordertocomplywiththearbitrage rebatesrequirements,positivearbitragemustbepaidtotheU.S.treasuryat theendofeachfive-yearanniversarydateofthebondissue.AsofDecember 31,2014,therearenoamountsofarbitragerebates. 44 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO G.RevenuePledged Futurerevenuepledgedforthepaymentoflong-termdebtisasfollows: 2008APublic 2013BG.O. ProjectRevenue Wastewater Description RefundingBonds TreatmentBonds Useofproceeds CommunityCenter SewageFund Revenuepledged Type Userfees Utilitycharges Percentoftotaldebtservice 100%100% Termofpledge 2008-2015 2013-2028 RemainingprincipalandInterest $1,000,760 $3,430,558 Currentyear PrincipalandInterestpaid $1,037,360 $254,198 Pledgedrevenuereceived $1,321,099 $2,058,729 NOTE8.DEFINEDBENEFITPENSIONPLANS–STATE-WIDE A.PlanDescription Allfull-timeandcertainpart-timeemployeesofthecityarecoveredbydefined benefitplansadministeredbythePublicEmployees’RetirementAssociation (PERA)ofMinnesota.PERAadministerstheGeneralEmployees’Retirement Fund(GERF)andthePublicEmployeesPoliceandFireFund(PEPFF),which arecost-sharing,multiple-employerretirementplans.Theseplansare establishedandadministeredinaccordancewithMinnesotaStatutes,Chapters 353and356. GERFmembersbelongtoeithertheCoordinatedPlanortheBasicPlan. CoordinatedPlanmembersarecoveredbySocialSecurityandBasicPlan membersarenot.AllnewmembersmustparticipateintheCoordinatedPlan.All policeofficers,firefighters,andpeaceofficerswhoqualifyformembershipby statutearecoveredbythePEPFF. PERAprovidesretirementbenefitsaswellasdisabilitybenefitstomembers,and benefitstosurvivorsupondeathofeligiblemembers.Benefitsareestablishedby statestatutes,andvestafterfiveyearsofcreditedservice.Thedefined retirementbenefitsarebasedonamember’shighestaveragesalaryforanyfive successiveyearsofallowableservice,age,andyearsofcreditattermination ofservice. TwomethodsareusedtocomputebenefitsforPERA’sCoordinatedandBasic Planmembers.Theretiringmemberreceivesthehigherofastep-ratebenefit accrualformula(Method1)oralevelaccrualformula(Method2).Under Method1,theannuityaccrualrateforaBasicPlanmemberis2.2percentof averagesalaryforeachofthefirst10yearsofserviceand2.7percentfor eachremainingyear.TheannuityaccrualrateforaCoordinatedPlanmember is1.2percentofaveragesalaryforeachofthefirst10yearsofserviceand1.7 percentforeachremainingyear.UnderMethod2,theannuityaccrualrateis 2.7percentofaveragesalaryforBasicPlanmembersand1.7percentfor CoordinatedPlanmembersforeachyearofservice.ForPEPFFmembers,the annuityaccrualrateis3.0percentforeachyearofservice.ForallPEPFF membersandGERFmembershiredpriortoJuly1,1989whoseannuityis calculatedusingMethod1,afullannuityisavailablewhenageplusyearsof serviceequal90.Normalretirementageis55forPEPFFmembersand65for BasicandCoordinatedPlanmembershiredpriortoJuly1,1989.Normal retirementageistheageforunreducedSocialSecuritybenefitscappedat66 forCoordinatedPlanmembershiredonorafterJuly1,1989.Areduced retirementannuityisalsoavailabletoeligiblemembersseekingearly retirement. Therearedifferenttypesofannuitiesavailabletomembersuponretirement.A single-lifeannuityisalifetimeannuitythatceasesuponthedeathofthe retiree—nosurvivorannuityispayable.Therearealsovarioustypesofjoint andsurvivorannuityoptionsavailablewhichwillbepayableoverjointlives. Membersmayalsoleavetheircontributionsinthefunduponterminationof publicserviceinordertoqualifyforadeferredannuityatretirementage. Refundsofcontributionsareavailableatanytimetomemberswholeave publicservice,butbeforeretirementbenefitsbegin. Thebenefitprovisionsstatedinthepreviousparagraphsofthissectionare currentprovisionsandapplytoactiveplanparticipants.Vested,terminated employeeswhoareentitledtobenefits,butarenotreceivingthemyetare boundbytheprovisionsineffectatthetimetheylastterminatedtheirpublic service. PERAissuesapubliclyavailablefinancialreportthatincludesfinancial statementsandrequiredsupplementaryinformationforGERFandPEPFF. Thatreportmaybeobtainedatmnpera.org;bywritingtoPERAat60Empire Drive,Suite200,St.Paul,Minnesota55103-2088;orbycalling(651)296– 7460or(800)652–9026. 45 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO B.FundingPolicy MinnesotaStatutes,Chapter353setstheratesforemployerandemployee contributions.ThesestatutesareestablishedandamendedbytheState Legislature.Thecitymakesannualcontributionstothepensionplansequalto theamountrequiredbystatestatutes.GERFBasicPlanmembersand CoordinatedPlanmemberswererequiredtocontribute9.1percentand6.25 percent,respectively,oftheirannualcoveredsalaryin2014.PEPFFmembers wererequiredtocontribute10.2percentoftheirannualcoveredsalaryin2014. In2014,thecitywasrequiredtocontributethefollowingpercentagesofannual coveredpayroll:11.78percentforBasicPlanmembers,7.25percentfor CoordinatedPlanmembers,and15.3percentforPEPFFmembers. ContributionrateswillincreaseJanuary1,2015intheCoordinatedPlan(6.5% formembersand7.5%foremployers)andthePEPFF(10.8percentfor membersand16.2percentforemployers). Thecity’scontributionsforthepastthreeyearsendingDecember31,2014, 2013,and2012were$241,170,$241,157,and$256,660,respectively.The City’scontributionswereequaltothecontractuallyrequiredcontributionsfor eachyearassetbystatestatutes. NOTE9.CITYOFMONTICELLOFIRERELIEFASSOCIATION A.PlanDescription ThecitycontributestotheCityofMonticelloFireReliefAssociation(the Association),asingleemployerretirementsystemthatactsasacommon investmentmanagerandadministratorforthecity’sfirefighters.Allactive membersofthefiredepartmentaremembersoftheAssociation.The Associationissuesapubliclyavailablefinancialreportthatincludesfinancial statementsandrequiredsupplementaryinformation.Acopyofthereportmaybe obtainedatMonticelloCityHall. UponapprovalbytheBoardofTrustees,lumpsumretirementbenefitsareeither paidordeferredasfollows: Eachmemberwhoisatleast50yearsofage,hasretiredfromthefire department,hasservedatleast10yearsofactiveservicewithsuch departmentbeforeretirementandhasbeenamemberoftheAssociationin goodstandingatleast10yearspriortosuchretirement,shallbeentitledto alumpsumservicepensionintheamountof$2,850foreachyearof servicebutnotexceedingthemaximumamountperyearofservice allowedbylawfortheminimumaverageamountofavailablefinancingper firefighterasprescribedbylaws.Ayearofservicemaybeproratedto twelvemonthlyslices,ifafullyearofactiveserviceisnotreached. IfamemberoftheAssociationshallbecomepermanentlyortotally disabled,theAssociationshallpaythesumof$2,850foreachyearthe memberwasanactivememberoftheAssociation.Ifamemberwho receivedadisabilitypensionsubsequentlyrecoversandreturnstoactive duty,thedisabilitypensionisdeductedfromtheservicepensionas approvedbytheBoardofTrustees. AccordingtothebylawsoftheAssociationandpursuanttoMinnesota Statutes,memberswhoretirewithlessthan20yearsofserviceandhave reachedtheageof50yearsandhavecompletedatleast10yearsof activemembershipareentitledtoareducedservicepensionnotto exceedtheamountcalculatedbymultiplyingthemember’sservice pensionforthecompletedyearsofservicetimesanapplicable nonforfeitablepercentage. Duringthetimeamemberisondeferredvestedpension(notyetreached age50),theywillearninterestonthedeferredbenefitamountatarate equaltotheactualtimeweightedtotalrateofreturnasreportedbythe MinnesotaStateAuditor’sOffice,uptofivepercent,compounded annually.Adeferredvestedmemberwillnotbeeligiblefordisability benefits. B.FundingPolicy MinnesotaStatutes§69.772setstheminimumcontributionrequirementfor thecityonanannualbasis,includingstateaidpassedthroughthecity.These statutesareestablishedandamendedbytheStateLegislature.The Associationiscomprisedofvolunteers,andnomembercontributionis required. C.Contributions ContributionsbythecityaredeterminedinaccordancewithMinnesota Statutesasfollows: •Normalcostfornextyear(increaseinpensionbenefitobligation) •Plusestimatedexpensesfornextyearand10percentofany deficits •Lessanticipatedincomenextyearand10percentofanysurplus 46 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO ThestateofMinnesotacontributesamortizationaid,or2percentfireaid,in accordancewithstatestatuterequirements.Planmembersarenotrequiredto contributetothePlan.TheStateLegislaturemayamendcontribution requirementsofthecityandstate.Municipalcontributionsaredeterminedbythe preparationofstatemandatedSchedulesIandII,whichmustbecertifiedtothe citybyAugust1oftheprecedingcalendaryear. Three-yeartrendinformationforthepensionplanisasfollows: Three-YearTrendInformation 2014 2013 2012 Statutoryrequiredcontribution(SRC)108,186$109,594$74,221$ Contributionmade City ––– Stateaid–pass-throughaid 108,186 109,594 74,221 Netpensionobligation ––– Percentagecontributed 100%100%100% C.FundingStatus Additionalinformationregardingstatutoryassumptionsandvaluationmethods areoutlinedbelow: SRCFormvaluationdate August1,2014 Statutoryassumptions Administrationexpenseincrease 3.5% Investmentrateofreturn 5.0% 2014stateaidcontribution 100.0% Amortizationofpensionbenefitsurplus(deficit)10.0% Thefundingstatusoftheplanforthelastthreeyearsareasfollows: Statutory ValuationDate–StatutoryValue Accrued Funded Funded December31,ofAssets Liability(SAL)(Unfunded)SAL Ratio 2014 1,053,739$924,403$129,336$114.0% 2013 1,114,949$965,425$149,524$115.5% 2012 1,046,960$1,031,472$15,488$101.5% TheScheduleofFundingProgressimmediatelyfollowingthenotestobasic financialstatementspresentsmulti-yeartrendinformationaboutwhetherthe statutoryvalueofplanassetsisincreasingordecreasingovertimerelativeto thestatutoryaccruedliabilitiesforbenefits. NOTE10.OTHERPOST-EMPLOYMENTBENEFITS(OPEB)PLAN A.PlanDescription Thecityprovidespost-employmentinsurancebenefitstocertaineligible employeesthroughthecity’sOPEBPlan,asingle-employerdefinedbenefit planadministeredbythecity.Allpost-employmentbenefitsarebasedon contractualagreementswithemployeegroups.TheRetireeHealthPlandoes notissueapubliclyavailablefinancialreport.Thesecontractualagreements donotincludeanyspecificcontributionorfundingrequirements.These benefitsaresummarizedasfollows: Post-EmploymentInsuranceBenefits –Allretireesofthecityhavethe optionunderstatelawtocontinuetheirmedicalinsurancecoverage throughthecityfromthetimeofretirementuntiltheemployeereachesthe ageofeligibilityforMedicare.Formembersofallemployeegroups,the retireemustpaythefullpremiumtocontinuecoverageformedicaland dentalinsurance. Thecityislegallyrequiredtoincludeanyretireesforwhomitprovides healthinsurancecoverageinthesameinsurancepoolasitsactive employees,whetherthepremiumsarepaidbythecityortheretiree. Consequently,participatingretireesareconsideredtoreceivea secondarybenefitknownasan“implicitratesubsidy.”Thisbenefitrelates totheassumptionthattheretireeisreceivingamorefavorablepremium ratethantheywouldotherwisebeabletoobtainifpurchasinginsurance ontheirown,duetobeingincludedinthesamepoolwiththecity’s youngerandstatisticallyhealthieractiveemployees. B.FundingPolicy Therequiredcontributionisbasedonprojectedpay-as-you-gofinancing requirements,withadditionalamountstopre-fundbenefitsasdetermined annuallybythecity. 47 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO C.AnnualOPEBCostandNetOPEBObligation Thecity’sannualOPEBcost(expense)iscalculatedbasedontheARCofthe city,anamountdeterminedonanactuariallydeterminedbasisinaccordance withtheparametersofGASBStatementNos.43and45.TheARCrepresentsa levelfundingthat,ifpaidonanongoingbasis,isprojectedtocovernormalcosts eachyearandamortizeanyunfundedactuarialliabilities(orfundingexcess) overaperiodnottoexceed30years.Thefollowingtableshowsthecomponents ofthecity’sannualOPEBcostfortheyear,theamountactuallycontributedto theplan,andthechangesinthecity’snetOPEBobligationtotheplan: ARC 39,276$ InterestonnetOPEBobligation 10,224 AdjustmenttoARC (14,782) AnnualOPEBcost(expense)34,718 Lesscontributionmade 6,761 IncreaseinnetOPEBobligation 27,957 NetOPEBobligation–beginningofyear 255,604 NetOPEBobligation–endofyear 283,561$ Thecity’sannualOPEBcost,thepercentageofannualOPEBcostcontributedto theplan,andthenetOPEBobligationforthelastthreeyearsareasfollows: Percentage Beginning ofAnnual Fiscal OPEB Annual EmployerOPEBCostNetOPEB YearEnded ObligationOPEBCostContributionContributedObligation January1,2012 182,507$56,654$23,498$41.5%215,663$ January1,2013 215,663$57,761$17,820$30.9%255,604$ January1,2014 255,604$34,718$6,761$19.5%283,561$ D.FundedStatusandFundingProgress AsofJanuary1,2014,themostrecentactuarialvaluationdate,theplanwas zeropercentfunded.Theactuarialaccruedliabilityforbenefitswas$265,486 andtheactuarialvalueofassetswas$0,resultinginanunfundedactuarial accruedliability(UAAL)of$265,486.Thecoveredpayroll(annualpayrollof activeemployeescoveredbytheplan)was$3,914,601,andtheratioofthe UAALtothecoveredpayrollwas6.78percent. Actuarialvaluationsofanongoingplaninvolveestimatesofthevalueof reportedamountsandassumptionsabouttheprobabilityoccurrenceofevents farintothefuture.Examplesincludeassumptionsaboutfutureemployment, mortality,andthehealthcarecosttrend.Amountsdeterminedregardingthe fundedstatusoftheplanandARCoftheemployeraresubjecttocontinual revisionasactualresultsarecomparedwithpastexpectationsandnew estimatesaremadeaboutthefuture.TheScheduleofFundingProgress immediatelyfollowingthenotestobasicfinancialstatementspresentsmulti- yeartrendinformationaboutwhethertheactuarialvalueofplanassetsis increasingordecreasingovertimerelativetotheactuarialaccruedliabilities forbenefits. E.ActuarialMethodsandAssumptions Projectionsofbenefitsforfinancialreportingpurposesarebasedonthe substantiveplan(theplanasunderstoodbytheemployerandtheplan members)andincludethetypesofbenefitsprovidedatthetimeofeach valuationandthehistoricalpatternofsharingofbenefitcostsbetweenthe employerandplanmemberstothatpoint.Theactuarialmethodsand assumptionsusedincludetechniquesthataredesignedtoreducetheeffects ofshort-termvolatilityinactuarialaccruedliabilitiesandtheactuarialvalueof assets,consistentwiththelong-termperspectiveofthecalculations. IntheJanuary1,2014actuarialvaluation,theprojectedunitcreditactuarial costmethodwasused.Theactuarialassumptionsincluded:a4.0percent investmentrateofreturn(netofadministrativeexpenses)basedonthecity’s owninvestments;anannualhealthcarecosttrendrateof10.0percentinitially, reducedbydecrementstoanultimaterateof5.0percentafter10yearsfor medicalinsurance.TheassumptionsuseddidnotincludeOPEBinflation increases.ThecityhaschosentoamortizetheentireUAALasaleveldollar amountovera30yearopenperiod.Thismethodwillre-amortizetheUAAL eachyearover30years.Absentactuarialgains,theUAALwillneverbefully recognizedunderthismethod. 48 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO NOTE11.FUNDBALANCES Classifications AtDecember31,2014,asummaryofthecity’sgovernmentalfundbalanceclassificationsareasfollows: Economic Debt Park General Community Development Service Capital Pathway Nonmajor Fund Center Authority Fund Projects Dedication Funds Total Nonspendable Prepaiditems 126,327$17,925$8,336$–$–$–$1,737$154,325$ Landheldforresale ––––1,787,089 ––1,787,089 Totalnonspendable 126,327 17,925 8,336 –1,787,089 –1,737 1,941,414 Restricted Debtservice –––3,919,070 –––3,919,070 Economicdevelopment ––1,098,621 –––1,105,077 2,203,698 Perpetualcare ––––––30,312 30,312 Taxincrement ––4,300,369 ––––4,300,369 Totalrestricted ––5,398,990 3,919,070 ––1,135,389 10,453,449 Assigned Capitalimprovements ––––1,108,530 –3,547,634 4,656,164 Economicdevelopment ––1,504,348 ––––1,504,348 Communitycenter operations –422,899 –––––422,899 Parkimprovements –––––738,333 –738,333 Totalassigned –422,899 1,504,348 –1,108,530 738,333 3,547,634 7,321,744 Unassigned 4,204,731 ––––––4,204,731 Total 4,331,058$440,824$6,911,674$3,919,070$2,895,619$738,333$4,684,760$23,921,338$ SpecialRevenueFunds 49 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO NOTE12.RISKMANAGEMENTANDLITIGATION Thecityisexposedtovariousrisksoflossesrelatedtotorts;theftof,damageto, anddestructionofassets;errorsandomissions;injuriestoemployees;and naturaldisasters.Forthepastseveralyears,thecityhasobtainedinsurance coveragefromvarioustrustsadministeredbytheLeagueofMinnesotaCities. Additionally,thecityhaseffectivelymanagedriskthroughvariousemployee educationandpreventionprograms. Allriskmanagementactivitiesareaccountedforintheappropriatefund. Expendituresandclaimsarerecognizedwhenitisprobablethatalosshas occurred,theamountofthelosscanbereasonablyestimated,andtheloss amountexceedsinsurancecoverage.Indeterminingclaims,eventsthatmight createclaims,butforwhichnonehavebeenreported,areconsidered. Thecityattorneyestimatesthattheamountofactualorpotentialclaimsagainst thecityasofDecember31,2014willnotmateriallyaffectthefinancialcondition ofthecity. WorkerscompensationcoverageisprovidedthroughtheLeagueofMinnesota CitiesInsuranceTrust(LMCIT).Thisisagroupself-insuredworkers’ compensationplan.NearlyeverymunicipalityinMinnesotaparticipatesinthe plan.Thecityhasneverhadtocontributeanyadditionalfundsbeyondthe annualstandardpremiumanddeductibles,whichis$1,000peroccurrence.The city’sannualpremiumreflectsabaseratemultipliedbyanexperience modificationof76%. Thecityprovideshealthbenefitcoveragetoallfull-timeemployeesandcertain part-timeemployeeswhomeetpersonnelpolicysetcriteria.Thecitypaysa portionofthepremium,whichissetannuallybycouncilaction,andisnot obligatedtomakeanyotherpayments. Thecityalsopurchasesproperty,vehicle,liabilityandvariousotherinsurance coveragesfromtheLMCIT.Thestandarddeductibleformostclaimsis$1,000. Statestatutesetstortlimitsformostliabilityclaimsat$500,000perindividual and$1,500,000forallclaimantsforoneincident.Annually,thecouncilcanwaive thetortlimits,buthaschosennottowithoutexception.Thecityperiodically receivesadividendfromLMCITandhasneverhadtocontributeadditionalfunds beyondpremiumsanddeductibles. Therewerenosignificantreductionsininsurancecoveragesfromtheprevious yearandtherewerenosettlementsinexcessofinsurancecoverageineachof thepastthreeyears. NOTE13.SPECIALITEM:LEGALSETTLEMENTWITHREVENUE BONDHOLDERSRESULTINGINGAINONEXTINGUISHMENTOF DEBT OnJune6,2012,thecitynotifiedthetrusteeforthe$26,445,000Monticello TelecommunicationsRevenueBonds,Series2008thatitwouldnolonger makemonthlysinkingfundpaymentsfromsupplementalsources.Atechnical defaultoccurredonJuly1,2012,whenthecityfailedtomakethesinkingfund payment.OnDecember1,2012,thefirstpaymentdefaultoccurred,asthe trusteeoptednottotapthe$2.3millioninthebondreservefundsinorderto makean$882,669interestpaymentdueonthatdate.Asecondnon-payment defaultoccurredonJune1,2013,whenan$882,669interestand$85,000 principalpaymentwasnotmade.Athirdnon-paymentdefaultoccurredon December1,2013,whenan$879,906interestpaymentwasnotmade. Underthethreatoflitigationfrombondholders,thecityenteredintoatolling agreementwiththetrusteeonApril1,2013inordertopermittimeforgood faithnegotiationstowardasettlementagreement.OnOctober2,2013,thecity andtrustee,onbehalfofbondholders,enteredintoasettlementagreement wherebythecitywouldpaya$5.75millionsettlement(21.7percentoforiginal par)inexchangeforreleasefromallfuturedebtservicerequirementsonthe bonds,releasefromanyfutureclaimsfrombondholders,andtheabilityto continuetoownandoperatethetelecommunicationsenterprise.The settlementagreementreceivedapprovalbystateandfederalcourtsin2014. Thecitysoldtax-supportedgeneralobligationsbondsinDecember2014and paidthesettlementamountpriortoyearend. Theextinguishmentofdebtresultedina$20,990,451FiberOpticsFundgain, whichisreportedasaspecialitemintheStatementofActivitiesandthe StatementofRevenues,ExpensesandChangesinNetPosition–Proprietary Funds.Thegainiscalculatedbysubtractingthe$5.75millionsettlementand amountsheldintrustaccountsfromtheparvalueofbondsoutstandingplus accruedinterestpayable. Priortofederalcourtapproval,bondholdershadtheoptiontooptoutofthe agreementandpursuedamagesindependently.Onebondholderoptedoutof thesettlement.Theparvalueofbondsownedbytheoptingoutpartyequaled $20,000or.076%oftheoriginalissueamount.Thepotentialremainingliability isimmaterialanditisnotreportedinthefinancialstatements. 50 NotestotheFinancialStatements December31,2014 CITYOFMONTICELLO NOTE14.INTERFUNDTRANSFERS InterfundtransfersfortheyearendedDecember31,2014consistedofthe following: TransfersIn TransfersOut Governmentalfunds: GeneralFund -$293,000$ CommunityCenter 50,000 1,040,000 EconomicDevelopment 93,000 218,353 ParkandPathwayDedication 664,500 - DebtService 3,906,885 5,783,732 CapitalProjects 200,000 664,500 Nonmajorgovernmental -326,300 Totalgovernmentalfunds 4,914,385 8,325,885 Enterprisefunds: Water -631,560 Sewage -1,690,672 Liquor -600,000 FiberOptics 6,383,732 - DeputyRegistrar -50,000 Totalenterprisefunds 6,383,732 2,972,232 Total 11,298,117$11,298,117$ Thefollowingschedulereflectseachfundtransfer: InFund OutFund Amount CommunityCenter DeputyRegistrar 50,000$(1) EconomicDevelopment General 93,000 (2) CapitalProjects 200,000 (3) ParkandPathwayDedication CapitalProjects 664,500 (4) DebtService CommunityCenter 1,040,000 (5) EconomicDevelopment 218,353 (5) Water 631,560 (5) Sewage 1,690,672 (5) Stormwater 326,300 (5) FiberOptics Liquor 600,000 (6) DebtService 5,783,732 (7) Total 11,298,117$ (1)Transferforresurfacingcommunitycentergymfloor. (2)Annualtransfertosubsidizefundoperations. (3)Transferforcommunicationtowerconstruction. (4)Transferforlandacquisitionandrelatedexpenditures. (5)Transferforprincipalandinterestpaymentsonvariousdebtissues. (6)Transfertosubsidizefundoperatingandcapitalexpenditures. (7)Bondissueproceedspaidinlegalsettlementwithrevenuebondholders. 51 (Thispageleftblankintentionally) 52 REQUIRED SUPPLEMENTARY INFORMATION CITYOFMONTICELLO RequiredSupplementaryInformation SchedulesofFundingProgress Statutory Statutory (Unfunded) Valuation Valueof Accrued Funded Funded Date PlanAssets Liability(SAL)SAL Ratio 2009 1,010,161$1,153,913$(143,752)$87.5% 2010 1,136,892 1,190,292 (53,400)95.5% 2011 1,127,049 1,220,891 (93,842)92.3% 2012 1,046,960 1,031,472 15,488 101.5% 2013 1,114,949 965,425 149,524 115.5% 2014 1,053,739 924,403 129,336 114.0% Unfunded Unfunded Actuarial Actuarial Actuarial Actuarial Liabilityasa Valuation Accrued Valueof Accrued Funded Covered Percentage Date Liability PlanAssets Liability Ratio Payroll ofPayroll January1,2008 302,787$-$302,787$--%3,080,457$9.83% January1,2011 362,290 -362,290 --%3,108,685 11.65% January1,2014 265,486 -265,486 --%3,914,601 6.78% Note:TheMonticelloVolunteerFiremen'sReliefAssociationiscomprisedofvolunteers;therefore therearenopayrollexpenditures(i.e.therearenocoveredpayrollpercentagecalculations). MonticelloFireDepartmentReliefAssociation CityofMonticelloOtherPost-EmploymentBenefitsPlan 53 CITYOFMONTICELLO ScheduleofRevenues,ExpendituresandChangesinFundBalance BudgetandActual-GeneralFund YearEndedDecember31,2014 OrginalandFinal Variancewith Budget Actual FinalBudget Revenues: Propertytaxes 5,497,000$5,507,285$10,285$ Franchiseandothertaxes 236,500 237,173 673 Licensesandpermits 273,180 378,810 105,630 Intergovernmental 289,177 320,691 31,514 Chargesforservices 261,698 319,477 57,779 Finesandforfeitures 100 1,900 1,800 Specialassessments 300 22,808 22,508 Investmentearnings 130,800 150,754 19,954 Otherrevenues 71,245 180,104 108,859 Totalrevenues 6,760,000 7,119,002 359,002 Expenditures: Current Generalgovernment Mayorandcouncil 53,925 52,181 (1,744) Cityadministration 294,406 273,993 (20,413) Elections 37,573 41,835 4,262 Finance 398,896 385,662 (13,234) Audit 41,000 53,541 12,541 Cityassessing 51,915 49,832 (2,083) Legal 37,000 29,303 (7,697) Humanresources 105,820 90,565 (15,255) Planning&zoning 200,005 220,080 20,075 Informationtechnologyservices 47,845 33,759 (14,086) Cityhall 217,364 205,770 (11,594) Prairiecenterbuilding 20,785 14,409 (6,376) Publicsafety Lawenforcement 1,098,726 1,098,403 (323) Fire&rescue 263,610 306,780 43,170 Firerelief 75,000 108,186 33,186 Buildinginspections 284,605 266,544 (18,061) Civildefense 3,836 1,660 (2,176) Animalcontrol 49,022 49,439 417 NationalGuard 22,250 14,061 (8,189) (continued) 54 CITYOFMONTICELLO ScheduleofRevenues,ExpendituresandChangesinFundBalance BudgetandActual-GeneralFund YearEndedDecember31,2014 (continued) OrginalandFinal Variancewith Budget Actual FinalBudget Expenditures(continued): Publicworks Publicworksadministration 119,290$122,151$2,861$ Engineering 136,916 195,841 58,925 Publicworksinspecitons 94,028 36,867 (57,161) Streets&alleys 875,150 735,629 (139,521) Ice&snow 237,136 308,387 71,251 Shop&garage 190,583 177,644 (12,939) Stormwater 33,140 16,842 (16,298) Parkinglots 9,303 3,814 (5,489) Streetlighting 222,500 195,695 (26,805) Sanitation Refuseandrecyclingcollection 521,397 517,956 (3,441) Transit Busservice 3,000 10,000 7,000 Recreationandculture Communitycelebrations 3,300 688 (2,612) Seniorcenter 97,022 97,547 525 Parkoperations 696,835 570,639 (126,196) Parkballfields 32,800 18,149 (14,651) Shadetree 52,069 68,891 16,822 Library 38,948 36,764 (2,184) Totalexpenditures 6,667,000 6,409,507 (257,493) Excess(deficiency)ofrevenuesoverexpenditures 93,000 709,495 616,495 Otherfinancingsources(uses) Transfersout (93,000)(293,000)(200,000) Totalotherfinancingsources(uses)(93,000)(293,000)(200,000) Netchangeinfundbalance -416,495 416,495 Fundbalanceatbeginningofyear 3,914,563 3,914,563 - Fundbalanceatendofyear 3,914,563$4,331,058$416,495$ 55 CITYOFMONTICELLO ScheduleofRevenues,ExpendituresandChangesinFundBalance BudgetandActual-CommunityCenterFund YearEndedDecember31,2014 OrginalandFinal Variancewith Budget Actual FinalBudget Revenues: Propertytaxes 1,390,000$1,388,404$(1,596)$ Chargesforservices 1,364,500 1,323,410 (41,090) Investmentearnings 2,500 (19,044)(21,544) Otherrevenues 8,000 22,993 14,993 Totalrevenues 2,765,000 2,715,763 (49,237) Expenditures: Current Recreationandculture Communitycenteroperations 1,537,090 1,430,279 (106,811) Communitycenterprogramming 212,850 108,386 (104,464) Ballfields 25,060 17,478 (7,582) Totalexpenditures 1,775,000 1,556,143 (218,857) Excess(deficiency)ofrevenuesoverexpenditures 990,000 1,159,620 169,620 Otherfinancingsources(uses) Transfersin 50,000 50,000 - Transfersout (1,040,000)(1,040,000)- Totalotherfinancingsources(uses)(990,000)(990,000)- Netchangeinfundbalance -169,620 169,620 Fundbalanceatbeginningofyear 271,204 271,204 - Fundbalanceatendofyear 271,204$440,824$169,620$ 56 CITYOFMONTICELLO ScheduleofRevenues,ExpendituresandChangesinFundBalance BudgetandActual-EconomicDevelopmentAuthorityFund YearEndedDecember31,2014 OrginalandFinal Variancewith Budget Actual FinalBudget Revenues: Propertytaxes 671,494$826,363$154,869$ Chargesforservices 1,000 4,128 3,128 Investmentearnings 106,938 168,282 61,344 Otherrevenues 95,476 7,513 (87,963) Totalrevenues 874,908 1,006,286 131,378 Expenditures: Current Economicdevelopment Generaloperations 114,000 120,242 6,242 Landheldforresaleadjustment 71,066 71,066 Developmentalactivities 328,604 893,256 564,652 Totalexpenditures 442,604 1,084,564 641,960 Excess(deficiency)ofrevenuesoverexpenditures 432,304 (78,278)(510,582) Otherfinancingsources(uses) Transfersin 93,000 93,000 - Transfersout (278,353)(218,353)60,000 Totalotherfinancingsources(uses)(185,353)(125,353)60,000 Netchangeinfundbalance 246,951 (203,631)(450,582) Fundbalanceatbeginningofyear 7,115,305 7,115,305 - Fundbalanceatendofyear 7,362,256$6,911,674$(450,582)$ 57 NotestotheRequiredSupplementaryInformation December31,2014 CITYOFMONTICELLO BudgetaryInformation Thecityfollowstheseproceduresinestablishingthebudgetarydatareflectedin thebasicfinancialstatements: A.PriortoSeptember1,thecityadministratorsubmitstothecitycouncila proposedoperatingbudgetforthefiscalyearcommencingthefollowing January1.Theoperatingbudgetincludesproposedexpendituresand themeansoffinancingthem.Thecitycounciladoptstheproposed budgetasamendedandadjustedbythecitycouncilandcertifiesthe proposedpropertytaxlevytothecountyauditoraccordingtoMinnesota Statutes. B.Publichearingsareconductedatthecitycouncil’schambersinthe MonticelloCommunityCenter. C.OnorbeforeDecember28,thefinalbudgetislegallyenactedbycity councilresolutionandthefinalpropertytaxlevyiscertifiedtothecounty auditor. D.Managementisauthorizedtotransferbudgetedamountsbetween departmentswithinafund;however,anyrevisionsthatalterthetotal expendituresofanyfundmustbeapprovedbythecitycouncil. E.ThecityhaslegallyadoptedbudgetsfortheGeneralFundandmajor specialrevenuefunds.Expendituresmaynotlegallyexceedbudgeted appropriationsatthetotalfundlevel.Monitoringofbudgetsis maintainedatthedepartmentlevel.Allamountsoverbudgethavebeen approvedbythecitycouncilthroughthedisbursementprocess.Thecity isnotlegallyrequiredtoadoptanannualbudgetforthenonmajor specialrevenuefunds,theDebtServiceFund,andtheCapitalProjects Funds.Project-lengthfinancialplansareadoptedfortheDebtService andCapitalProjectsFunds. F.Budgetsareadoptedonabasisconsistentwithaccountingprinciples generallyacceptedintheUnitedStatesofAmerica.Budgetedamounts areasoriginallyadoptedoramendedbythecitycouncil.Allannual appropriationslapseatyear-end. 58 NONMAJOR GOVERNMENTAL FUNDS NONMAJORGOVERNMENTALFUNDS SPECIALREVENUEFUNDS areusedtoaccountforrevenuederivedfromspecifictaxesorotherearmarkedrevenuesources(otherthanfor majorcapitalprojects)thatarerestrictedbylaworadministrativeactiontoexpendituresforspecifiedpurposes. MinnesotaInvestmentFund -Establishedtoaccountfortheadministrationofloanstolocalbusinesseswhilefollowingstateandfederal guidelines. CemeteryFund –Establishedtoaccountfortheactivitiesofcemeteryoperations.Thecitymaintainstwocemeteries:RiversideandHillside. CDBGRevitalizationFund –EstablishedtoaccountforfundingandactivitiesfortheCDBGRevitalizationGrant. CAPITALPROJECTSFUNDS areusedtoaccountforresourcesusedfortheacquisitionandconstructionofcapitalassetsbythecity,exceptfor thosefinancedbyproprietaryfunds. StormSewerAccessFund –Thisfundwasestablishedtoaccountforfeescollectedfrombuildingpermitsfornewconstructionandlot development.Thefeeswillfinancemajorimprovementstothecity’sstormsewersystem. CityStreetReconstructionFund –Thisfundwasestablishedtoaccountforannualimprovementstothecity’sinfrastructurebasedona reconstructionschedule. StreetLightingFund –Thisfundwasestablishedtoaccountforactivitiesincorporatingstreetlightingintodesignatedareasthroughoutthecity.A portionofthecity’selectricfranchisefeeisthemainrevenuesourceforthisfund. CITYOFMONTICELLO CombiningBalanceSheet NonmajorGovernmentalFunds December31,2014 CityStreet Street Minnesota CDBG-StormSewer Recon-Lighting Investment Cemetery Revitalization Access struction Improvement Total ASSETS Cashandinvestments 1,104,689$33,330$388$873,721$1,750,910$847,887$4,610,925$ Currenttaxesreceivable ----123 -123 Accountsreceivable -----74,993 74,993 Notesreceivable --240,144 ---240,144 Prepaiditems -1,737 ----1,737 Totalassets 1,104,689$35,067$240,532$873,721$1,751,033$922,880$4,927,922$ LIABILITIES Liabilities: Accountsandcontractspayable -$3,018$-$-$-$-$3,018$ Totalliabilities -3,018 ----3,018 DEFERREDINFLOWSOFRESOURCES Unavailablerevenue-notesreceivable --240,144 ---240,144 Totaldeferredinflowsofresources --240,144 ---240,144 FUNDBALANCES Specialrevenuefunds Nonspendable -1,737 ----1,737 Restrictedforeconomicdevelopment 1,104,689 -388 ---1,105,077 Restrictedforperpetualcare -30,312 ----30,312 Capitalprojectfunds Assignedforcapitalimprovements ---873,721 1,751,033 922,880 3,547,634 Totalfundbalances 1,104,689 32,049 388 873,721 1,751,033 922,880 4,684,760 Totalliabilities,deferredinflowsof resources,andfundbalances 1,104,689$35,067$240,532$873,721$1,751,033$922,880$4,927,922$ SpecialRevenueFunds CapitalProjectFunds 59 CITYOFMONTICELLO CombiningStatementofRevenues,ExpendituresandChanges inFundBalances-NonmajorGovernmentalFunds YearEndedDecember31,2014 CityStreet Street Minnesota CDBG-StormSewer Recon-Lighting Investment Cemetery Revitalization Access struction Improvement Total Revenues: Propertytaxes -$-$-$-$176$-$176$ Franchisetaxes -----86,976 86,976 Chargesforservices -37,465 -38,494 --75,959 Investmentearnings 53,471 1,258 20 39,638 84,752 43,620 222,759 Totalrevenues 53,471 38,723 20 78,132 84,928 130,596 385,870 Expenditures: Current: Publicworks ---292 --292 Recreationandculture -22,385 ----22,385 Economicdevelopment -56 ---56 Totalexpenditures -22,385 56 292 --22,733 Excess(deficiency)of Revenuesoverexpenditures 53,471 16,338 (36)77,840 84,928 130,596 363,137 Otherfinancingsources(uses): Transfersout ---(326,300)--(326,300) Totalotherfinancingsources(uses)---(326,300)--(326,300) Netchangeinfundbalance 53,471 16,338 (36)(248,460)84,928 130,596 36,837 Fundbalanceatbeginingofyear 1,051,218 15,711 424 1,122,181 1,666,105 792,284 4,647,923 Fundbalanceatendofyear 1,104,689$32,049$388$873,721$1,751,033$922,880$4,684,760$ SpecialRevenueFunds CapitalProjectFunds 60 INTERNAL SERVICE FUNDS INTERNALSERVICEFUNDS INTERNALSERVICEFUNDS areusedtoaccountforthefinancingofcentralizedservicestocitydepartmentsonacost-reimbursementbasis (includingdepreciation). CentralEquipmentFund –Thisfundwasestablishedtoaccountforequipmentpurchaseandrentaltovariousgovernmentalfunddepartments. InformationTechnology(IT)ServicesFund –ThisfundwasestablishedtoaccountfortheaccumulationanddistributionofvariousITrelated costs,includingcommunications,softwaresupport,capitalandnon-capitalequipment,andsoftwarepurchases. CITYOFMONTICELLO CombiningStatementofNetPosition InternalServiceFunds December31,2014 Central IT Equipment Services Total ASSETS Currentassets: Cashandinvestments 985,907$82,705$1,068,612$ Prepaiditems -94 94 Totalcurrentassets 985,907 82,799 1,068,706 Noncurrentassets: Capitalassets: Machineryandequipment 656,491 17,013 673,504 Totalcapitalassets 656,491 17,013 673,504 Lessaccumulateddepreciation (34,570)(5,034)(39,604) Totalcapitalassets(net)621,921 11,979 633,900 Totalnoncurrentassets 621,921 11,979 633,900 TOTALASSETS 1,607,828 94,778 1,702,606 LIABILITIES Currentliabilities: Accountspayable 73,335 23,912 97,247 Accruedinterestpayable 1,382 -1,382 Duetoothergovernmentalunits -73 73 Bondspayableduewithinoneyear 60,000 -60,000 Totalcurrentliabilities 134,717 23,985 158,702 Noncurrentliabilities: Bondspayable,netcurrentportion 840,000 -840,000 Totalnoncurrentliabilities 840,000 -840,000 TOTALLIABILITIES 974,717 23,985 998,702 NETPOSITION Netinvestmentincapitalassets (278,079)11,979 (266,100) Unrestricted 911,190 58,814 970,004 TOTALNETPOSITION 633,111$70,793$703,904$ 61 CITYOFMONTICELLO CombiningStatementofRevenues,ExpensesandChanges inNetPosition-InternalServiceFunds YearEndedDecember31,2014 Central IT Equipment Services Total Operatingrevenues: Chargestootherfunds 111,900$252,708$364,608$ Totaloperatingrevenues 111,900 252,708 364,608 Operatingexpenses: Materialsandsupplies -22,803 22,803 Otherservicesandcharges 28,362 195,916 224,278 Depreciation 24,494 3,403 27,897 Totaloperatingexpenses 52,856 222,122 274,978 Operatingincome(loss)59,044 30,586 89,630 Nonoperatingrevenues(expenses) Investmentearnings 42,527 2,864 45,391 Interestexpense (6,992)(6,992) Totalnonoperatingrevenues(expenses)35,535 2,864 38,399 Changeinnetposition 94,579 33,450 128,029 Netpositionatbeginningofyear 538,532 37,343 575,875 Netpositionatendofyear 633,111$70,793$703,904$ 62 CITYOFMONTICELLO CombiningStatementofCashFlows InternalServiceFunds YearEndedDecember31,2014 Central IT Equipment Services Total Cashflowfromoperatingactivities: Cashreceivedfrominternalcustomers 111,900$252,708$364,608$ Cashpaidtosuppliersforgoodsandservices 44,973 (207,395)(162,422) Netcashprovidedbyoperatingactivities 156,873 45,313 202,186 Cashflowsfromcapitalandrelatedfinancingactivities: Acquisitionofcapitalassets (561,491)-(561,491) Proceedsfromissuanceoflong-termdebt 515,000 -515,000 Principalpaymentsonlong-termdebt (60,000)-(60,000) Interestandfiscalchargespaidonbonds (6,120)-(6,120) Netcash(used)bycapitalandrelatedfinancingactivities (112,611)-(112,611) Cashflowsfrominvestingactivities Interestoninvestments 42,527 2,864 45,391 Netcashprovidedbyinvestingactivities 42,527 2,864 45,391 Increase(decrease)incashandcashequivalents 86,789 48,177 134,966 Cashandcashequivalents-January1 899,118 34,528 933,646 Cashandcashequivalents-December31 985,907$82,705$1,068,612$ Reconciliationofoperatingincome(loss)tonetcash providedbyoperatingactivities: Operatingincome(loss)59,044$30,586$89,630$ AdjustmentstoReconcileOperatingIncome(Loss) toNetCashProvidedbyOperatingActivities: Depreciation 24,494 3,403 27,897 Changesinassetsandliabilities: Increaseinprepaiditems -(94)(94) Increaseinaccountsandcontractspayable 73,335 11,345 84,680 Increaseinduetoothergovernmentunits -73 73 Netcashprovidedbyoperatingactivities 156,873$45,313$202,186$ Noncashinvesting,capital,andfinancingactivities: Increase(decrease)infairvalueofinvestments 22,056$2,041$24,097$ 63 (Thispageleftblankintentionally) 64 OTHER SUPPLEMENTARY SCHEDULES CITYOFMONTICELLO ScheduleofAssets,Liabilities,DeferredInflowsofResources,andFundBalances DebtServiceActivities December31,2014 Revenue Bonds 2007A 2008B 2010A 2011A 2014A 2008 Improvement Sewer Improvement Refunding Bonds PublicProject Total ASSETS Cashandcashequivalents 547,724$879,156$586,678$1,516,432$169,152$1,799$3,700,941$ Receivables: Currenttaxes 1,424 1,319 -588 --3,331 Deliquenttaxes 4,423 396 -1,782 --6,601 Currentspecialassessments 93,925 -43,322 646,698 --783,945 Deliquentspecialassessments 2,962 -12,743 1,433,896 --1,449,601 Deferredspecialassessments 393,994 -226,507 2,763,183 --3,383,684 Accountsreceivable ---215,800 --215,800 Notesreceivable ---400,000 --400,000 Totalassets 1,044,452$880,871$869,250$6,978,379$169,152$1,799$9,943,903$ LIABILITIES Liabilities: Accountsandcontractspayable 167 167 167 167 167 167 1,002 Totalliabilities 167 167 167 167 167 167 1,002 DEFERREDINFLOWSOFRESOURCES Unavailablerevenue-propertytaxes 4,423 396 -1,782 --6,601 Unavailablerevenue-specialassessments 490,881 -282,572 4,843,777 --5,617,230 Unavailablerevenue-notesreceivable ---400,000 --400,000 Totaldeferredinflowsofresources 495,304 396 282,572 5,245,559 --6,023,831 FUNDBALANCES Restrictedfordebtservice 548,981 880,308 586,511 1,732,653 168,985 1,632 3,919,070 Totalfundbalances 548,981 880,308 586,511 1,732,653 168,985 1,632 3,919,070 Totalliabilities,deferredinflows ofresources,andfundbalances 1,044,452$880,871$869,250$6,978,379$169,152$1,799$9,943,903$ GeneralObligationBonds 65 CITYOFMONTICELLO ScheduleofRevenues,ExpendituresandOtherFinancingSources(Uses) DebtServiceActivities YearEndedDecember31,2014 Revenue Bonds 2007A 2008B 2010A 2011A 2014A 2008 Improvement Sewer Improvement Refunding Bonds PublicProject Total Revenues: Propertytaxes 539,672$499,697$-$222,866$-$-$1,262,235$ Specialassessments 378,594 -61,311 1,049,371 --1,489,276 Investmentearnings (4,309)21,686 26,608 51,357 778 561 96,681 Otherrevenue: Other --3 200,000 --200,003 Totalrevenues 913,957 521,383 87,922 1,523,594 778 561 3,048,195 Expenditures: Debtservice Principal 527,000 894,000 320,000 2,680,000 -990,000 5,411,000 Interestandfiscalcharges 98,877 155,360 40,765 200,767 115,687 47,527 658,983 Totalexpenditures 625,877 1,049,360 360,765 2,880,767 115,687 1,037,527 6,069,983 Excess(deficiency)of Revenuesoverexpenditures 288,080 (527,977)(272,843)(1,357,173)(114,909)(1,036,966)(3,021,788) Otherfinancingsources(uses): Generalobligationbondsissued ----6,080,000 -6,080,000 Discountongeneralobligationbonds ----(12,374)-(12,374) Transfersin -857,337 239,595 1,769,953 -1,040,000 3,906,885 Transfersout ----(5,783,732)-(5,783,732) Totalotherfinancingsources(uses)-857,337 239,595 1,769,953 283,894 1,040,000 4,190,779 Netchangeinfundbalance 288,080 329,360 (33,248)412,780 168,985 3,034 1,168,991 Fundbalanceatbeginingofyear 260,901 550,948 619,759 1,319,873 -(1,402)2,750,079 Fundbalanceatendofyear 548,981$880,308$586,511$1,732,653$168,985$1,632$3,919,070$ GeneralObligationBonds 66 CITYOFMONTICELLO ScheduleofRevenues(Sources)andExpenditures(Uses) GeneralFund YearEndedDecember31,2014 2014 Variancewith 2011 2012 2013 Final 2014 Final Actual Actual Actual Budget Actual Budget Revenueandothersources-summary: Propertytaxes 5,166,194$5,711,491$5,605,101$5,516,500$5,527,958$11,458$ Franchisetaxes 75,500 195,500 217,000 217,000 216,500 (500) Specialassessments 3,550 10,349 22,351 300 22,808 22,508 Licenses&Permits 249,498 275,198 331,136 273,180 378,810 105,630 IntergovernmentalRevenue 268,936 301,895 372,632 289,177 320,691 31,514 ChargesforServices 399,545 312,807 281,138 261,698 319,477 57,779 Fines&Forfeitures 55,700 63,106 41,124 100 1,900 1,800 InvestmentEarnings 308,219 85,603 (52,134)130,800 150,754 19,954 MiscellaneousRevenue 128,740 406,167 169,997 71,245 180,104 108,859 InterfundTransfers -1,729 ---- TotalRevenues&OtherSources 6,655,882 7,363,845 6,988,345 6,760,000 7,119,002 359,002 Revenueandothersources-detail: Taxes Propertytax-current 5,092,937 5,420,093 5,505,158 5,497,000 5,483,145 (13,855) Propertytax-delinquent 55,389 249,876 75,279 -24,140 24,140 Mobilehometax 14,508 12,790 13,362 14,500 17,575 3,075 Penaltiesandinterest-taxes 3,360 28,732 11,302 5,000 3,098 (1,902) Franchisetaxes Franchisetax-electric 75,000 195,000 216,500 216,500 216,500 - Franchisetax-other 500 500 500 500 -(500) Specialassessments Assessmentforservices/projects 3,550 10,349 22,351 300 22,808 22,508 Licenses&Permits Liquorlicense 51,726 50,290 50,320 50,280 44,612 (5,668) Beerlicense 912 913 912 900 964 64 Otherbusinesslicenses&permits 4,403 4,673 3,476 3,500 3,707 207 Buildingpermits 179,749 207,574 260,981 212,000 315,466 103,466 Variance/conditionalusepermits 1,800 2,800 2,550 1,100 2,600 1,500 Drivewaypermits 150 75 50 150 25 (125) Gradingpermits 5,073 --200 -(200) Mobilehomepermits 190 380 475 200 95 (105) Excavationpermits -1,250 3,050 -3,850 3,850 Right-of-waypermits -3,551 3,092 -3,158 3,158 Sign/bannerpermits 4,910 3,320 5,790 4,500 4,025 (475) Animallicenses 585 372 440 350 308 (42) IntergovernmentalRevenue Homesteadcredit 8,708 ----- Peraincreaseaid 6,741 6,741 6,741 6,740 6,741 1 continued… 67 CITYOFMONTICELLO ScheduleofRevenues(Sources)andExpenditures(Uses) GeneralFund YearEndedDecember31,2014 (continued) 2014 Variancewith 2011 2012 2013 Final 2014 Final Actual Actual Actual Budget Actual Budget Statehighwayaid-operating 96,957 109,379 107,173 101,737 111,280 9,543 Firedepartmentaid-operating 73,007 74,221 109,594 75,000 108,186 33,186 Policedepartmentaid-operating 60,700 59,062 65,767 60,700 63,205 2,505 Countyoperatinggrant-street/highway -41,370 38,579 15,000 -(15,000) Countyoperatinggrant-civildefense 22,823 11,122 11,678 15,000 13,157 (1,843) Countyoperatinggrant-recycling --33,100 15,000 18,122 3,122 ChargesforServices Zoning/subdivisionfees 1,325 2,500 850 500 1,200 700 Saleofmapsandpublications 35 38 15 25 -(25) Assessmentsearches 1,850 2,850 7,125 1,850 8,174 6,324 Blightnoticefee 7,575 350 2,200 -(1,650)(1,650) Finalplatfee 175 100 50 -250 250 Planningadministrationfee 578 30,007 450 600 550 (50) NSFfee 85 ---90 90 Inspection/constructionfees -451 861 -983 983 Inspectionfees-buildings 49,194 ----- Contractorlicensingfee 50 550 1,300 100 1,825 1,725 Fireprotectionsfees-townships 136,629 133,773 124,227 118,663 124,227 5,564 Fireemergencyresponsefee 3,354 7,000 4,250 3,500 4,883 1,383 Fire-otherfees 350 6,024 3,091 600 2,050 1,450 Blightmowingfees 6,027 682 1,865 1,000 (559)(1,559) Rentalhousingfees 45,485 36,415 43,355 45,000 55,030 10,030 Animalcontrolfees 54,279 28,755 29,539 30,000 34,462 4,462 Investmentadministrationfee 26,761 ----- Miscellaneouspubicworks -186 --8,981 8,981 Treeandbrushremovalcharge 1,120 --1,000 2,200 1,200 Recyclingbinfee 334 485 -300 -(300) Garbagefee-taxable 43,514 44,069 44,199 43,700 44,992 1,292 Garbagemiscellaneousfee 696 660 786 100 17,488 17,388 Garbagesurcharge-nottaxable 7,760 7,863 7,887 7,760 2,340 (5,420) Field/Tourneyfees 5,234 3,250 3,906 2,500 4,019 1,519 Parkrentalfees 5,333 4,524 4,982 4,500 5,099 599 Developercostreimbursement 1,752 138 200 -2,843 2,843 Generalchargesforservices 50 2,137 ---- Fines&Forfeitures Courtfines 55,615 48,768 39,399 --- Animalimpoundfines 85 145 225 100 400 300 Liquorlicenseviolation -1,500 1,500 -1,500 1,500 Administrationoffensefines -12,693 ---- InvestmentEarnings Investmentearnings 295,189 73,623 (62,833)120,000 145,211 25,211 continued… 68 CITYOFMONTICELLO ScheduleofRevenues(Sources)andExpenditures(Uses) GeneralFund YearEndedDecember31,2014 (continued) 2014 Variancewith 2011 2012 2013 Final 2014 Final Actual Actual Actual Budget Actual Budget Interest-Andersonloan 3,332 2,748 1,954 2,100 -(2,100) Interest-SwanRiverloan 9,698 9,232 8,745 8,700 5,543 (3,157) MiscellaneousRevenue Citypropertyrental 2,176 1,600 1,600 1,600 1,600 - Billboardlandrental -32,023 19,888 12,400 20,146 7,746 Miscellaneouspark ----2,520 2,520 Lease-PrairieCenter 32,497 37,933 38,476 36,600 37,511 911 Lease-communicationtower ----8,000 8,000 Contributions 10,050 6,277 23,250 2,500 4,000 1,500 Saleofcityproperty 2,185 3,021 374 500 1,994 1,494 Saleoflockboxes 1,361 684 1,015 700 855 155 TreeSales ----5,600 5,600 Copies 79 381 -70 21 (49) Refunds&reimbursables 39,796 76,892 44,100 10,000 55,030 45,030 Assessmentfeereimbursement 28,982 29,850 24,525 -24,675 24,675 Firecontributions ----11,400 11,400 Insuranceclaims/dividends -195,830 9,433 --- Othermiscellaneous 11,614 21,676 7,336 6,875 6,752 (123) OtherFinancingSources Transfersfromotherfunds -1,729 ---- Totalrevenuesandothersources 6,655,882 7,363,845 6,988,345 6,760,000 7,119,002 359,002 Expendituresandotheruses-summary: Generalgovernment 1,419,994 1,412,578 1,389,599 1,497,518 1,438,346 (59,172) Publicsafety 1,784,025 1,784,357 1,844,833 1,797,049 1,845,073 48,024 Publicworks 1,656,622 1,702,395 1,700,161 1,918,046 1,792,870 (125,176) Sanitation 495,693 500,037 505,996 521,397 517,956 (3,441) Transit ---3,000 10,000 7,000 Recreationandculture 828,600 814,260 853,777 920,974 792,678 (128,296) Generalunallocated 398,995 279,302 165,923 9,016 12,584 3,568 Transfersoutandotheruses 728,383 2,393,502 92,000 93,000 293,000 200,000 Totalexpendituresandotheruses 7,312,312 8,886,431 6,552,289 6,760,000 6,702,507 (57,493) Expendituresandotheruses-divisions: Generalgovernment MayorandCouncil 52,078 51,988 53,696 53,925 52,181 (1,744) CityAdministration 238,736 228,738 260,322 294,406 273,993 (20,413) Elections 1,000 38,933 2,425 37,573 41,835 4,262 Finance 377,894 337,348 326,510 398,896 385,662 (13,234) Audit 42,720 39,227 47,823 41,000 53,541 12,541 CityAssessing 49,032 49,600 49,664 51,915 49,832 (2,083) Legal 42,491 40,275 46,905 37,000 29,303 (7,697) continued… 69 CITYOFMONTICELLO ScheduleofRevenues(Sources)andExpenditures(Uses) GeneralFund YearEndedDecember31,2014 (continued) 2014 Variancewith 2011 2012 2013 Final 2014 Final Actual Actual Actual Budget Actual Budget HumanResources 74,537 84,041 93,067 105,820 90,565 (15,255) Planning&Zoning 173,918 163,629 182,753 200,005 220,080 20,075 InformationTechnologyServices 116,790 130,102 95,572 47,845 33,759 (14,086) CityHall 223,887 233,602 215,507 208,348 193,186 (15,162) PrairieCenterBuilding 26,911 15,095 15,355 20,785 14,409 (6,376) Publicsafety LawEnforcement 1,176,985 1,187,382 1,190,441 1,098,726 1,098,403 (323) Fire&Rescue 195,801 207,778 222,141 263,610 306,780 43,170 FireRelief 72,647 74,221 109,594 75,000 108,186 33,186 BuildingInspections 245,272 248,376 251,007 284,605 266,544 (18,061) CivilDefense 26,823 2,719 9,707 3,836 1,660 (2,176) AnimalControl 45,829 49,594 47,426 49,022 49,439 417 NationalGuard 20,668 14,287 14,517 22,250 14,061 (8,189) Publicworks PublicWorksAdministration 181,639 176,457 113,882 119,290 122,151 2,861 Engineering 220,078 200,287 224,028 136,916 195,841 58,925 PublicWorksInspecitons 45,749 64,827 54,878 94,028 36,867 (57,161) Streets&Alleys 615,836 655,170 689,046 875,150 735,629 (139,521) Ice&Snow 173,842 133,193 210,552 237,136 308,387 71,251 Shop&Garage 185,191 219,646 186,741 190,583 177,644 (12,939) Stormwater 16,553 51,468 12,064 33,140 16,842 (16,298) ParkingLots 11,748 4,568 2,965 9,303 3,814 (5,489) StreetLighting 205,986 196,779 206,005 222,500 195,695 (26,805) Sanitation RefuseCollection 495,693 500,037 505,996 521,397 517,956 (3,441) Transit Transitservices ---3,000 10,000 7,000 Recreationandculture CommunityCelebrations 39 5,165 1,186 3,300 688 (2,612) SeniorCenter 93,171 88,441 90,219 97,022 97,547 525 IceArena 75,000 75,000 75,000 --- ParkOperations 561,078 533,537 572,985 696,835 570,639 (126,196) ParkImprovements ------ ParkBallfields 18,546 29,419 25,517 32,800 18,149 (14,651) ShadeTree 44,479 52,983 53,475 52,069 68,891 16,822 Library 36,287 29,715 35,395 38,948 36,764 (2,184) Generalunallocated Insurancesandother 398,995 279,302 165,923 9,016 12,584 3,568 Transfersoutandotheruses Transfersout 728,383 2,393,502 92,000 93,000 293,000 200,000 Totalexpenditures&otheruses 7,312,312$8,886,431$6,552,289$6,760,000$6,702,507$(57,493)$ Revenueover/(under)expenditures (656,430)$(1,522,586)$436,056$-$416,495$416,495 70 STATISTICAL SECTION STATISTICALSECTION TheStatisticalSectionisincludedtoprovidedetaileddataonthephysical,economic,socialandpoliticalcharacteristicsofthereporting government.Itisintendedtoprovidetheuserwithabroaderandmorecompleteunderstandingofthegovernmentanditsfinancialaffairsthanis possiblefromthebasicfinancialstatementsandsupplementaryinformationincludedintheFinancialSection. Page Financialtrends NetPositionbyComponent-LastTenFiscalYears 71 ChangesinNetPosition-LastTenFiscalyears 72 FundBalancesofGovernmentalFunds-LastTenFiscalYears 74 ChangesinFundBalancesofGovernmentalFunds-LastTenFiscalYears 75 GovernmentalFundsTaxRevenuesbySource-LastTenFiscalYears(modifiedaccrualbasis)76 GeneralGovernmentalTaxRevenuesbySource-Last10FiscalYears(accrualbasis)77 Revenuecapacity TaxCapacityValueandEstimatedMarketValueofTaxableProperty-LastTenFiscalYears 78 PropertyTaxRates-AllDirectandOverlappingGovernments-LastTenFiscalYears 79 PropertyTaxLeviesandCollections-LastTenFiscalYears 80 PrincipalPropertyTaxpayers-CurrentYearandNineYearsAgo 81 WaterSoldbyCustomerType-LastTenFiscalYears 82 WaterandSewageUtilityRates-LastTenFiscalYears 83 Debtcapacity RatiosofOutstandingDebtbyType-LastTenFiscalYears 84 RatiosofNetGeneralObligationBondedDebtOutstanding-LastTenFiscalYears 85 LegalDebtMarginInformation-LastTenFiscalYears 86 ComputationofDirectandOverlappingDebt 87 ScheduleofRevenueBondCoverage-LastTwoFiscalYears 88 Economicanddemographicinformation Demographic&EconomicStatistics-LastTenFiscalYears 89 PrincipalEmployers-CurrentYearandNineYearsAgo 90 Operatinginformation CityGovernmentEmployeesbyFunction/Program-LastTenFiscalYears 91 OperatingIndicatorsbyFunction-LastTenFiscalYears 92 CapitalAssetsStatisticsbyFunction-LastTenFiscalYears 94 CITYOFMONTICELLO NetPositionbyComponent LastTenFiscalYears (accrualbasisofaccounting) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Governmentalactivities Netinvestmentin capitalassets 7,009,622$7,009,622$12,476,536$27,584,763$33,712,370$31,901,676$38,242,040$40,525,009$44,268,757$48,253,810$ Restricted --31,517,792 22,074,427 17,688,193 18,337,866 16,894,936 13,061,044 18,118,070 10,453,449 Unrestricted 45,136,460 56,949,749 24,543,501 28,445,230 28,183,161 26,876,421 24,758,269 25,119,107 13,487,299 14,792,521 Totalgovernmentalnetposition 52,146,082$63,959,371$68,537,829$78,104,420$79,583,724$77,115,963$79,895,245$78,705,160$75,874,126$73,499,780$ Business-typeactivities Netinvestmentin capitalassets 35,077,391$35,749,380$33,971,151$31,375,890$29,910,696$28,556,355$25,031,043$23,698,091$20,496,832$42,117,264$ Restricted ---19,350 19,350 19,350 19,350 19,350 -- Unrestricted 4,740,491 5,437,867 6,441,470 4,529,830 2,846,018 6,363,148 6,901,353 7,642,046 6,463,638 9,121,952 Totalbusiness-typenetposition 39,817,882$41,187,247$40,412,621$35,925,070$32,776,064$34,938,853$31,951,746$31,359,487$26,960,470$51,239,216$ Primarygovernment Netinvestmentin capitalassets 42,087,013$42,759,002$46,447,687$58,960,653$63,623,066$60,458,031$63,273,083$64,223,100$64,765,589$90,371,074$ Restricted --31,517,792 22,093,777 17,707,543 18,357,216 16,914,286 13,080,394 18,118,070 10,453,449 Unrestricted 49,876,951 62,387,616 30,984,971 32,975,060 31,029,179 33,239,569 31,659,622 32,761,153 19,950,937 23,914,473 Totalprimarygovernment netposition 91,963,964$105,146,618$108,950,450$114,029,490$112,359,788$112,054,816$111,846,991$110,064,647$102,834,596$124,738,996$ Note:Infiscalyears2013and2012,thecityhadachangeinaccountingprinciple,achangeinfundstructure,andpriorperiod adjustments.Prioryearswerenotadjustedtoreflectthesechanges. $- $20 $40 $60 $80 $100 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Millions PrimaryGovernmentNetPosition Netinvestmentin capitalassets Restrictednet position Unrestrictednet position 71 CITYOFMONTICELLO ChangesinNetPosition LastTenFiscalYears (accrualbasisofaccounting) Expenses 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Governmentalactivities: Generalgovernment 1,907,352 3,639,497 1,844,320 1,572,389 1,780,972 2,065,463 2,111,710 2,103,737 1,623,727 1,488,243 Publicsafety 1,551,098 2,856,573 1,693,116 1,792,351 2,849,272 1,766,712 1,788,595 1,819,378 1,884,981 1,880,193 Publicworks 5,990,719 5,318,865 4,559,460 4,634,167 3,827,501 3,579,291 4,838,544 5,045,729 5,163,461 5,223,345 Sanitation 492,446 474,045 509,208 514,208 547,160 534,903 495,693 500,037 487,268 517,956 Transit 10,000 Recreationandculture 2,244,446 2,766,014 2,703,227 2,729,950 2,855,682 2,636,088 1,753,197 2,719,730 2,875,260 2,882,127 Economicdevelopment 657,258 2,061,331 769,584 510,126 842,819 2,647,687 1,199,936 803,594 1,005,813 1,084,620 Interestandfiscalcharges 1,733,933 2,378,871 2,193,840 2,136,872 1,673,431 1,464,012 1,248,716 1,298,869 235,265 649,854 Totalgovernmentalactivitiesexpenses 14,577,252 19,495,196 14,272,755 13,890,063 14,376,837 14,694,156 13,436,391 14,291,074 13,275,775 13,736,338 Business-typeactivities Waterutility 939,449 913,638 973,375 975,846 1,018,098 936,718 1,167,572 1,118,789 1,009,600 1,084,882 Sewageutility 2,017,993 2,095,124 2,000,610 2,085,485 2,074,447 2,495,976 2,340,555 2,480,657 2,466,660 2,762,357 Liquor 3,172,741 3,285,082 644,857 620,743 669,940 637,574 658,999 662,002 689,559 692,976 Fiberoptics ––84,594 1,590,237 2,792,813 3,815,377 5,702,480 5,228,428 5,240,871 2,919,170 Deputyregistrar ––––––––293,531 300,236 Totalbusiness-typeactivitiesexpenses 6,130,183 6,293,844 3,703,436 5,272,311 6,555,298 7,885,645 9,869,606 9,489,876 9,700,221 7,759,621 Totalprimarygovernmentexpenses 20,707,435$25,789,040$17,976,191$19,162,374$20,932,135$22,579,801$23,305,997$23,780,950$22,975,996$21,495,959$ ProgramRevenues Governmentalactivities: Chargesforservices: Generalgovernment 683,599 974,186 695,117 523,228 443,976 491,304 521,182 619,992 147,244 180,145 Publicsafety 912,300 1,030,842 93,138 99,812 155,036 96,293 202,237 179,540 163,366 164,616 Publicworks 2,692,336 1,186,670 1,994,067 1,544,140 744,241 1,556,098 508,077 383,066 544,404 371,671 Sanitation 863,857 129,057 --167,119 165,387 52,304 53,077 16,653 48,385 Transit - Recreationandculture 159,252 1,048,551 1,044,699 1,084,622 1,139,199 1,153,113 1,240,970 1,150,273 1,307,149 1,331,581 Economicdevelopment 146,715 115,616 6,768 15,875 155,769 ----- Operatinggrantsandcontributions 381,420 281,531 160,147 159,192 269,492 424,845 253,127 252,784 293,710 295,828 Capitalgrantsandcontributions 2,135,687 12,153,185 3,616,870 948,340 2,067,509 4,124,271 2,083,511 1,841,915 1,079,738 1,774,628 Totalgovernmentalactivities programrevenues 7,975,166 16,919,638 7,610,806 4,375,209 5,142,341 8,011,311 4,861,408 4,480,647 3,552,264 4,166,854 Business-typeactivities: Chargesforservices: Waterutility 701,346 742,146 867,873 973,776 1,019,390 828,635 1,078,133 1,304,923 1,214,570 1,117,226 Sewageutility 969,996 1,043,208 1,196,983 1,307,064 1,371,776 1,470,537 1,712,058 1,850,919 1,981,491 2,081,660 Liquor 3,540,572 3,619,236 1,002,933 1,059,479 1,043,256 1,174,767 1,151,171 1,214,745 1,318,276 1,289,369 Fiberoptics –––––456,820 1,610,258 1,747,587 1,606,720 1,761,978 Deputyregistrar ––––––––456,285 497,798 Operatinggrantsandcontributions –––––––––– Capitalgrantsandcontributions 4,310,691 2,188,675 482,412 106,787 –––––488,628 Totalbusiness-typeactivities programrevenues 9,522,605 7,593,265 3,550,201 3,447,106 3,434,422 3,930,759 5,551,620 6,118,174 6,577,342 7,236,659 Totalprimarygovernment programrevenues 17,497,771$24,512,903$11,161,007$7,822,315$8,576,763$11,942,070$10,413,028$10,598,821$10,129,606$11,403,513$ (continued) 72 CITYOFMONTICELLO ChangesinNetPosition LastTenFiscalYears (accrualbasisofaccounting) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Net(expense)/revenue: Governmentalactivities (6,602,086)$(2,575,558)$(6,661,949)$(9,514,854)$(9,234,496)$(6,682,845)$(8,574,983)$(9,810,427)$(9,723,511)$(9,569,484)$ Business-typeactivities 3,392,422 1,299,421 (153,235)(1,825,205)(3,120,876)(3,954,886)(4,317,986)(3,371,702)(3,122,879)(522,962) Totalprimarygovernmentnetexpense (3,209,664)$(1,276,137)$(6,815,184)$(11,340,059)$(12,355,372)$(10,637,731)$(12,892,969)$(13,182,129)$(12,846,390)$(10,092,446)$ GeneralRevenuesandOtherChangesinNetPosition Governmentalactivities: Taxes Propertytaxes 7,476,106$7,253,560$7,242,838$8,450,599$8,821,568$8,260,705$8,451,149$8,746,348$8,927,164$9,219,737$ Franchisetaxes ––––48,517 371,258 341,362 339,518 320,640 357,409 Unrestrictedgrantsandcontributions 200,000 130,000 288,940 158,340 406,735 37,665 19,359 38,618 65,228 27,502 Investmentearnings 985,497 2,093,877 2,170,025 1,461,658 770,178 859,583 1,467,780 767,722 (189,128)784,347 Other ––––41,173 ––11,575 3,885 217,643 Gainonsaleofcapitalassets 2,799,703 4,619,629 528,193 233,326 366,961 442,091 354,501 540,272 489,782 - Transfers 250,000 250,000 997,929 371,245 251,133 (5,774,257)713,655 (2,420,489)278,500 (3,411,500) Totalgovernmentalactivities 11,711,306 14,347,066 11,227,925 10,675,168 10,706,265 4,197,045 11,347,806 8,023,564 9,896,071 7,195,138 Business-typeactivities Investmentearnings 89,987 334,623 326,356 547,703 188,178 236,131 495,484 264,589 (117,175)399,757 Miscellaneous (25,576)27,100 62,664 136,356 42,360 125,326 1,555,509 100,687 65,468 – Gainonextinguishmentofdebt 20,990,451 Transfers (250,000)(250,000)(997,929)(371,245)(251,133)5,774,257 (713,655)2,420,489 (278,500)3,411,500 Totalbusiness-typeactivities (185,589)111,723 (608,909)312,814 (20,595)6,135,714 1,337,338 2,785,765 (330,207)24,801,708 Totalprimarygovernment 11,525,717$14,458,789$10,619,016$10,987,982$10,685,670$10,332,759$12,685,144$10,809,329$9,565,864$31,996,846$ ChangesinNetPosition Governmentalactivities 5,109,220$11,771,508$4,565,976$1,160,314$1,471,769$(2,485,800)$2,772,823$(1,786,863)$172,560$(2,374,346)$ Business-typeactivities 3,206,833 1,411,144 (762,144)(1,512,391)(3,141,471)2,180,828 (2,980,648)(585,937)(3,453,086)24,278,746 Totalprimarygovernment 8,316,053$13,182,652$3,803,832$(352,077)$(1,669,702)$(304,972)$(207,825)$(2,372,800)$(3,280,526)$21,904,400$ Note1:Thecitymadeafundstructurechangeinfiscalyear2013.Prioryeardatahasnotbeenchangedtoreflectthischange. Note2:ThecityimplementedGASBStatementNo.54infiscalyear2011.Prioryeardatahasnotbeenrestatedasaresultofthischange. 73 CITYOFMONTICELLO FundBalancesofGovernmentalFunds LastTenFiscalYears (modifiedaccrualbasisofaccounting) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 GeneralFund Reserved 388,527$405,819$430,294$359,303$392,541$336,286$-$-$-$-$ Unreserved 4,735,864 5,014,094 5,131,193 5,819,249 4,705,092 4,644,748 ---- Nonspendable ------386,616 342,380 258,100 126,327 Restricted ---------- Committed ------3,374,200 --- Assigned ---------- Unassigned ------649,821 3,136,127 3,656,463 4,204,731 Totalgeneralfund 5,124,391$5,419,913$5,561,487$6,178,552$5,097,633$4,981,034$4,410,637$3,478,507$3,914,563$4,331,058$ Allothergovernmentalfunds Reserved 14,754,923$17,912,418$27,072,957$16,663,801$10,280,326$7,884,431$-$-$-$-$ Unreserved Specialrevenuefunds 18,425,893 14,946,443 7,554,334 14,191,473 18,451,828 18,324,689 ---- Capitalprojectsfunds 9,261,188 (1,805,372)(630,214)(1,839,478)(2,124,391)(1,532,220)---- Nonspendable ------1,299,057 197,123 1,822,926 1,815,087 Restricted ------22,140,662 21,480,938 10,928,985 10,453,449 Committed ------2,662,124 --- Assigned ------9,138,626 8,655,488 6,485,727 7,321,744 Unassigned Specialrevenuefunds ------(141,890)--- Capitalprojectsfunds ------(1,435,666)--- Totalallother governmentalfunds 42,442,004$31,053,489$33,997,077$29,015,796$26,607,763$24,676,900$33,662,913$30,333,549$19,237,638$19,590,280$ Note1:ThemadeafundstructurechangefortheperiodendingDecember31,2013.Prioryeardatahasnot beenrestatedasaresultofthischange. Note2:ThecityimplementedGASB54forthefinancialreportingperiodendingDecember31,2011.Prioryear datahasnotbeenrestatedasaresultofthischange. 74 CITYOFMONTICELLO ChangesinFundBalancesofGovernmentalFunds LastTenFiscalYears (modifiedaccrualbasisofaccounting) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Revenues Propertytaxes 6,722,393$6,461,748$6,190,599$7,233,582$7,502,844$7,319,154$7,294,635$8,234,086$7,985,695$8,407,627$ Taxincrements 753,713 791,812 824,714 1,172,447 1,193,021 1,155,386 1,044,791 1,024,134 965,935 826,363 Franchisetaxes ––––48,517 371,258 341,362 339,518 320,640 357,409 Specialassessments 3,341,537 2,006,519 3,112,374 2,566,932 2,462,673 1,465,264 1,856,134 1,902,871 2,065,944 1,912,932 Licensesandpermits 956,300 758,718 627,751 917,539 266,797 217,184 249,999 275,699 331,711 378,810 Intergovernmental 373,929 937,076 1,764,633 550,283 1,688,895 1,620,771 1,434,420 540,475 1,264,781 732,366 Chargesforservices 4,014,956 2,796,871 2,888,981 2,290,091 2,518,548 2,890,006 2,239,584 2,076,834 1,846,919 1,722,974 Finesandforfeitures 4,000 1,750 5,027 2,216 1,220 205 85 14,338 1,725 1,900 Investmentearnings 985,497 2,093,877 2,170,025 1,461,658 770,178 859,583 1,467,780 767,722 (183,242)738,956 Otherrevenues 3,165,372 4,564,660 372,502 197,988 435,186 643,873 603,019 753,832 700,776 413,113 Totalrevenues 20,317,697 20,413,031 17,956,606 16,392,736 16,887,879 16,542,684 16,531,809 15,929,509 15,300,884 15,492,450 Expenditures Generalgovernment 1,544,446 1,743,716 1,899,097 1,579,164 1,634,395 1,997,458 2,039,270 2,023,674 1,576,653 1,450,930 Publicsafety 1,666,869 2,760,090 1,603,331 1,736,962 2,738,768 1,684,296 1,728,409 1,735,579 1,805,434 1,845,073 Publicworks 4,635,519 3,594,844 1,951,712 2,380,993 2,074,811 1,562,155 1,675,222 1,703,849 1,707,576 1,793,162 Sanitation 492,446 474,045 509,208 514,208 547,160 534,903 495,693 500,037 505,996 517,956 Transit 10,000 Cultureandrecreation 2,361,302 2,271,216 2,214,108 2,220,368 2,355,669 2,164,534 2,419,369 2,272,595 2,472,987 2,386,832 Economicdevelopment 637,777 2,056,055 772,852 525,783 842,819 2,647,687 1,198,449 800,540 1,011,961 1,084,620 Capitaloutlay 12,137,740 13,074,965 6,430,421 3,522,196 1,946,153 4,138,459 4,067,251 2,829,049 1,357,254 2,220,883 Debtservice Principal 1,911,126 3,407,655 3,388,382 5,037,028 6,749,293 5,001,000 4,860,000 5,174,500 5,290,750 5,411,000 Interestandfiscalcharges 1,426,367 2,373,438 2,256,311 2,192,063 1,801,392 1,553,661 1,383,095 1,290,430 930,982 658,983 Totalexpenditures 26,813,592 31,756,024 21,025,422 19,708,765 20,690,460 21,284,153 19,866,758 18,330,253 16,659,593 17,379,439 Excessofrevenues over(under)expenditures (6,495,895)(11,342,993)(3,068,816)(3,316,029)(3,802,581)(4,741,469)(3,334,949)(2,400,744)(1,358,709)(1,886,989) Otherfinancingsources(uses) Transfersin 4,128,010 8,181,372 5,202,051 16,818,090 10,172,878 4,687,126 5,710,819 9,990,120 6,906,770 4,914,385 Transfersout (3,878,010)(7,931,372)(4,204,122)(16,446,845)(9,921,745)(4,431,158)(4,997,164)(10,732,901)(7,158,933)(8,325,885) Debtissued 25,150,000 –5,137,903 15,450,000 –3,255,000 10,735,000 ––6,080,000 Premium(discount)ondebtissued 761,396 –83,710 ––(19,530)301,910 ––(12,374) Refundedbondsredeemed –––(15,908,564)–(865,000)––(10,690,000)– Refundingdeferredamortized(loss)–––(384,432)–––––– Saleoflandheldforresale ––(103,084)74,650 –––––– Saleofcapitalassets ––37,520 2,575 62,496 67,569 –11,575 12,428 – Totalotherfinancingsources(uses)26,161,396 250,000 6,153,978 (394,526)313,629 2,694,007 11,750,565 (731,206)(10,929,735)2,656,126 Netchangeinfundbalances 19,665,501$(11,092,993)$3,085,162$(3,710,555)$(3,488,952)$(2,047,462)$8,415,616$(3,131,950)$(12,288,444)$769,137$ Debtserviceaspercentage ofnoncapitalexpenditures 22.7%30.9%38.7%44.7%45.6%38.2%39.5%41.7%40.7%40.0% Note:ThecitymadeafundstructurechangefortheperiodendingDecember31,2013.Prioryeardatahasnotbeenmodifiedtoreflectthischange. 75 CITYOFMONTICELLO GovernmentalFundsTaxRevenuesbySource LastTenFiscalYears (modifiedaccrualbasisofaccounting) Property Tax Franchise Year Tax Increment Tax Total 2005 6,722,393$753,716$-$7,476,109$ 2006 6,461,748 791,812 -7,253,560 2007 6,190,599 824,714 -7,015,313 2008 7,233,582 1,172,447 -8,406,029 2009 7,502,844 1,193,021 48,517 8,744,382 2010 7,319,154 1,155,386 371,258 8,845,798 2011 7,294,635 1,044,791 341,362 8,680,788 2012 8,234,086 1,024,134 339,518 9,597,738 2013 7,985,695 965,935 320,640 9,272,270 2014 8,407,627 826,363 357,409 9,591,399 Change 2005-2014 25.1%9.6%---28.3% Source:FinanceDepartment $- $1 $2 $3 $4 $5 $6 $7 $8 $9 2005200620072008200920102011201220132014 Millions TaxRevenuesbySource PropertyTax TaxIncrement FranchiseTax 76 CITYOFMONTICELLO GeneralGovernmentalTaxRevenuesbySource LastTenFiscalYears (accrualbasisofaccounting) Property Franchise Year Tax Tax Total 2005 7,476,106$-$7,476,106$ 2006 7,253,560 -7,253,560 2007 7,242,838 -7,242,838 2008 8,450,599 -8,450,599 2009 8,821,568 48,517 8,870,085 2010 8,260,705 371,258 8,631,963 2011 8,451,149 341,362 8,792,511 2012 8,746,348 339,518 9,085,866 2013 8,927,164 320,640 9,247,804 2014 9,219,737 357,409 9,577,146 Change 2005-2014 23.3%---28.1% Source:FinanceDepartment $- $2 $4 $6 $8 $10 2005200620072008200920102011201220132014 Millions TaxRevenuesbySource PropertyTax FranchiseTax 77 CITYOFMONTICELLO TaxCapacityValueandEstimatedMarketValueofTaxableProperty LastTenFiscalYears Total NetTax TaxableNet Capacityasa Residential%of Commercial%of Personal%of Ag/Misc %of TaxCapacity %of TotalDirect Total Percentageof Year Property Total Property Total Property Total Property Total Value*Total TaxRate MarketValue MarketValue 2005 5,182,370$41.5%7,085,105$56.7%160,594$1.3%70,843$0.6%12,498,912$100.0%58.651 882,038,300$1.4% 2006 5,824,238 41.8%7,871,132 56.5%170,446 1.2%69,626 0.5%13,935,442 100.0%51.028 993,647,300 1.4% 2007 6,929,517 42.8%8,913,821 55.0%177,822 1.1%183,695 1.1%16,204,855 100.0%42.458 1,243,461,100 1.3% 2008 7,443,331 43.0%9,455,666 54.6%176,289 1.0%236,789 1.4%17,312,075 100.0%46.942 1,282,400,700 1.3% 2009 7,506,973 41.8%9,966,873 55.5%174,223 1.0%299,191 1.7%17,947,260 100.0%46.191 1,245,407,600 1.4% 2010 6,165,704 35.4%10,793,836 62.0%189,563 1.1%251,177 1.4%17,400,280 100.0%45.822 1,188,222,100 1.5% 2011 5,307,260 31.9%10,897,898 65.5%194,825 1.2%229,016 1.4%16,628,999 100.0%46.729 1,106,541,400 1.5% 2012 4,611,403 23.6%14,538,165 74.3%235,633 1.2%194,492 1.0%19,579,693 100.0%49.773 1,219,719,700 1.6% 2013 4,824,117 25.4%13,793,916 72.5%239,129 1.3%164,609 0.9%19,021,771 100.0%42.262 1,201,075,800 1.6% 2014 5,408,138 21.9%18,818,097 76.4%235,713 1.0%184,750 0.7%24,646,698 100.0%44.709 1,513,570,400 1.6% Note1:Thefiscalyearisforthevaluesintheyearleviedfortaxescollectibleinthefollowingyear. Note2:*Taxexemptpropertyvaluesandtaxincrementvaluesarenotincludedintotalnettaxcapacityvalue. Source:WrightCountyCertificateofTaxesandTaxableProperties. RealProperty $- $5 $10 $15 $20 $25 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Millions TotalTaxableNetTaxCapacityValue (ExcludesPersonalandAg/MiscProperty) Residential Commercial 78 CITYOFMONTICELLO PropertyTaxRates-AllDirectandOverlappingGovernments LastTenFiscalYears Monticello Total(1) City Wright School Special Directand Year ofMonticello County District#882 Districts Overlapping 2005 58.65 34.41 26.38 2.67 122.11 2006 51.03 32.57 24.37 2.33 110.30 2007 42.46 30.71 23.15 2.95 99.27 2008 46.94 31.65 25.25 2.52 106.36 2009 46.19 32.57 26.08 2.07 106.91 2010 45.82 35.82 24.95 1.75 108.34 2011 46.73 39.31 27.03 1.50 114.57 2012 49.77 43.45 28.26 1.24 122.72 2013 42.26 44.29 26.23 0.61 113.39 2014 44.71 43.45 28.27 ---116.43 Note1: Source:WrightCounty OverlappingTaxingDistricts Informationreflectstotaltaxratesleviedbyeachentity.Taxratesareexpressedintermsof“nettaxcapacity.”A property’staxcapacityisdeterminedbymultiplyingitstaxablemarketvaluebyastatedeterminedclassrate.Class ratesvarybypropertytypeandchangeperiodicallybasedonstatelegislation.Componentsofthedirectratearenot readilyavailable. 0 20 40 60 80 2005200620072008200920102011201220132014 Rate % PropertyTaxRates Forthethreehighesttaxingauthorities Wright District #882 City 79 CITYOFMONTICELLO PropertyTaxLeviesandCollections LastTenFiscalYears PROPERTYTAXES TotalTax Collectionsin Abatements Fiscal Levyfor Tax Net %of Subsequent %of and %of Year FiscalYear Credits Levy Amount NetLevy Years Amount NetLevy Adjustments Amount NetLevy 2005 6,957,776$293,845$6,663,931$6,577,121$98.7%87,264$6,664,385$100.0%1,055$601$0.0% 2006 6,750,132 283,978 6,466,154 6,349,118 98.2%107,270 6,456,388 99.8%(8,603)1,163 0.0% 2007 6,499,914 261,362 6,238,552 6,044,463 96.9%170,324 6,214,787 99.6%(22,051)1,714 0.0% 2008 7,600,189 267,056 7,333,133 7,118,136 97.1%172,598 7,290,734 99.4%(39,224)3,175 0.0% 2009 7,750,119 263,587 7,486,532 7,237,730 96.7%210,210 7,447,940 99.5%(32,099)6,493 0.1% 2010 7,648,269 278,930 7,369,339 7,155,141 97.1%179,669 7,334,810 99.5%(25,704)8,825 0.1% 2011 7,677,351 293,075 7,384,276 7,178,807 97.2%175,054 7,353,861 99.6%(19,074)11,341 0.2% 2012 7,850,042 -7,850,042 7,759,174 98.8%24,592 7,783,766 99.2%(52,496)13,780 0.2% 2013 7,900,724 -7,900,724 7,827,356 99.1%30,381 7,857,737 99.5%(25,642)17,345 0.2% 2014 8,151,086 -8,151,086 8,108,286 99.5%--8,108,286 99.5%(880)41,920 0.5% TAXINCREMENTS TotalTax Collectionsin Abatements Fiscal Levyfor Tax Net %of Subsequent %of and %of Year FiscalYear Credits Levy Amount NetLevy Years Amount NetLevy Adjustments Amount NetLevy 2005 736,301$-$736,301$732,534$99.5%3,767$736,301$100.0%-$-$0.0% 2006 779,400 -779,400 777,297 99.7%443 777,740 99.8%(1,660)-0.0% 2007 889,262 -889,262 836,397 94.1%1,222 837,619 94.2%(51,643)-0.0% 2008 1,191,177 -1,191,177 1,184,402 99.4%4,874 1,189,276 99.8%(1,901)-0.0% 2009 1,247,605 -1,247,605 1,205,582 96.6%39,200 1,244,782 99.8%(886)1,937 0.2% 2010 1,193,383 -1,193,383 1,144,243 95.9%36,309 1,180,552 98.9%(11,059)1,772 0.1% 2011 1,071,686 -1,071,686 1,044,309 97.4%25,742 1,070,051 99.8%-1,635 0.2% 2012 955,039 -955,039 953,400 99.8%-953,400 99.8%-1,639 0.2% 2013 971,745 -971,745 970,071 99.8%-970,071 99.8%(470)1,204 0.1% 2014 869,425 -869,425 869,339 100.0%--869,339 100.0%-86 0.0% Source: YearoftheNetLevy toDate TotalUncollected WrightCounty Collectedwithinthe TotalCollections YearoftheNetLevy toDate TotalUncollected Collectedwithinthe TotalCollections 80 CITYOFMONTICELLO PrincipalPropertyTaxpayers CurrentYearandNineYearsAgo Percentageof Percentageof TaxableNetTax TotalNetTax Market TaxableNetTax TotalNetTax Taxpayer MarketValue(1)CapacityValue Rank CapacityValue Value CapacityValue Rank CapacityValue XcelEnergy(NorthernStates)464,619,100$9,285,841$1 48.8%241,173,400$4,815,613 1 38.5% WalmartRealEstateBusTrust 12,542,500 250,100 2 1.3% TargetCorporation 10,120,400 201,658 3 1.1% NewRiverMedicalCenter 7,544,100 150,882 4 0.8% HomeDepotUSA,Inc.7,000,000 139,250 5 0.7% MullerFamilyTheatres 5,511,400 109,097 6 0.6%6,549,800 129,496 2 1.0% AXTCRetail,LP 5,154,900 101,598 7 0.5% BBFProperties,Inc.3,977,300 78,796 8 0.4%3,547,700 93,360 5 0.7% Tapper’sHoldings,LLC 3,956,800 77,636 9 0.4% Minnegasco,Inc.3,874,500 77,490 10 0.4%2,892,500 57,850 10 0.5% PetersonHoldings,LLC 4,743,000 93,360 3 0.7% JacobHoldingsofMonticello,LLC 3,587,200 70,244 4 0.6% GouldBrothersChev,LLP 3,522,400 69,698 6 0.6% MonticelloWashingtonAssn 3,500,000 69,650 7 0.6% Tomann,Terrance&MaryFamilyLTD 3,458,400 68,418 8 0.5% WrightCountyProducts 3,061,300 60,476 9 0.5% 524,301,000$10,472,348$55.1%276,035,700$5,528,165 44.2% Note1:Themarketvalueandtaxablenettaxcapacityvalueisfortaxesleviedin2013,whicharepayablein2014. Source:WrightCountyCertificateofTaxesandTaxableProperties 2014 2005 81 CITYOFMONTICELLO WaterSoldbyCustomerType(gallons) LastTenFiscalYears Total %of %of %of %of Water %of Year Residential Total Commercial Total Industrial Total GovernmentTotal Sold Total 2005 344,197,058 64.7%74,789,130 14.1%57,739,095 10.9%54,964,838 10.3%531,690,121 100.0% 2006 419,892,135 69.5%82,989,503 13.7%52,305,000 8.7%48,622,223 8.1%603,808,861 100.0% 2007 467,672,488 71.3%91,517,828 14.0%49,035,750 7.5%47,703,225 7.3%655,929,291 100.0% 2008 409,879,658 69.0%84,234,653 14.2%47,790,000 8.0%52,154,498 8.8%594,058,809 100.0% 2009 430,263,791 75.0%69,825,753 12.2%38,713,057 6.8%34,601,796 6.0%573,404,397 100.0% 2010 376,687,840 67.1%90,001,208 16.0%47,225,176 8.4%47,227,405 8.4%561,141,629 100.0% 2011 348,580,072 66.0%84,194,027 15.9%50,971,196 9.7%44,219,755 8.4%527,965,050 100.0% 2012 426,358,402 69.0%97,281,410 15.7%46,654,712 7.5%47,866,428 7.7%618,160,952 100.0% 2013 383,079,041 68.8%85,819,687 15.4%45,954,136 8.2%42,206,803 7.6%557,059,667 100.0% 2014 328,835,772 68.2%79,370,922 16.5%38,308,124 7.9%35,566,000 7.4%482,080,818 100.0% Source:CityofMonticelloutilitybillingdepartment 0 100 200 300 400 500 600 700 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Millions WaterSoldbyCustomerType(gallons) Government Industrial Commercial Residential 82 CITYOFMONTICELLO WaterandSewageUtilityRates LastTenFiscalYears RateTier1 RateTier2 RateTier3 RateTier4 RateTier1 RateTier2 RateTier3 RateTier4 RateTier1 RateTier1 BaseRate 501–4,000 4,001–13,369 Over13,369 BaseRate 501–4,000 4,001–13,369 Over13,369 BaseRate Over500 Fiscal First500 per100 per100 per100 First500 per100 per100 per100 First500 per100 Year CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet 2005 8.58$0.52$0.52$N/A 8.58$0.52$N/A N/A 10.00$1.80 2006 8.92 0.54 0.54 N/A 8.92 0.54 N/A N/A 10.40 1.87 2007 10.26 0.62 0.71 N/A 10.26 0.62 N/A N/A 11.96 2.15 2008 11.91 0.74 0.84 N/A 11.91 0.74 N/A N/A 13.75 2.47 2009 12.40 0.78 0.88 N/A 12.40 0.78 N/A N/A 14.45 2.60 2010 13.00 0.85 0.95 N/A 14.75 0.95 N/A N/A 15.15 2.75 2011 14.30 0.95 1.10 1.20 14.30 0.95 1.10 1.20 16.75 3.00 2012 15.44 1.03 1.19 1.30 15.44 1.03 1.19 1.30 18.76 3.36 2013 17.00 1.13 1.31 1.43 17.00 1.13 1.31 1.43 20.65 3.70 2014 17.00 1.13 1.31 1.43 17.00 1.13 1.31 1.43 20.65 3.70 N/A–NotAvailable Source:CityofMonticelloutilitybillingdepartment Water Sewage Residential Commercial 83 CITYOFMONTICELLO RatiosofOutstandingDebtbyType LastTenFiscalYears 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Governmentalactivities Generalobligation: Specialassessmentbonds 31,065,000$30,255,000$28,415,000$24,075,000$21,535,000$21,320,000$29,490,000$26,625,000$13,010,000$10,010,000$ Otherbonds 2,420,000 2,210,000 7,132,903 15,737,903 12,822,903 11,531,903 10,196,903 8,877,403 7,506,653 12,680,653 Taxincrementbonds 970,000 810,000 680,000 575,000 470,000 ----- Netpremium(discount)668,448 639,119 691,438 651,542 631,516 572,079 818,803 744,748 265,320 67,350 TotalGObonds 35,123,448 33,914,119 36,919,341 41,039,445 35,459,419 33,423,982 40,505,706 36,247,151 20,781,973 22,758,003 Notes 10,835,699 10,188,973 9,515,592 ------- Certificatesofindebtedness --------445,000 385,000 Totalgeneralobligationdebt 45,959,147 44,103,092 46,434,933 41,039,445 35,459,419 33,423,982 40,505,706 36,247,151 21,226,973 23,143,003 Non-generalobligation: Revenuebonds 6,830,864 6,579,419 6,157,974 5,742,098 5,209,011 4,612,454 3,690,898 2,739,341 1,782,784 985,000 Contractfordeed 2,085,222 764,293 664,293 564,293 ------ Totalgovernmentalactivites 54,875,233$51,446,804$53,257,200$47,345,836$40,668,430$38,036,436$44,196,604$38,986,492$23,009,757$24,128,003$ Business-typeactivities Generalobligation: Improvementbonds -$-$907,097$907,097$837,097$747,097$654,097$568,597$3,479,347$3,206,347$ Non-generalobligation Revenuebonds ---26,445,000 26,445,000 26,445,000 26,445,000 26,445,000 26,445,000 - Netpremium(discount)14,364 (502,517)(479,980)(457,441)(434,904)(412,366)(360,211)31,941 Totalbusiness-typeactivities -$-$921,461$26,849,580$26,802,117$26,734,656$26,664,193$26,601,231$29,564,136$3,238,288$ Totalprimarygovernment 54,875,233$51,446,804$54,178,661$74,195,416$67,470,547$64,771,092$70,860,797$65,587,723$52,573,893$27,366,291$ %ofpersonalincome(1)16.5%14.3%14.3%18.9%17.6%15.8%16.8%13.7%10.5%5.4% Percapitadebt(1)5,147$4,620$4,815$6,528$5,879$5,632$5,554$5,071$4,055$2,106$ (1)SeetheScheduleofDemographicandEconomicStatistics. Note:Detailsregardingthecity’soutstandingdebtcanbefoundinthenotestobasicfinancialstatements. 84 CITYOFMONTICELLO RatiosofNetGeneralObligationBondedDebtOutstanding LastTenFiscalYears Percentageof LessAmounts Estimated General Available ActualMarket Obligation inDebt Valueof Year Bonds(1)ServiceFund Total Property(2)PerCapita(3) 2005 35,123,448$9,162,548$25,960,900$2.94%2,435$ 2006 33,914,119 9,170,798 24,743,321 2.49%2,222 2007 36,919,341 18,520,552 18,398,789 1.48%1,635 2008 41,039,445 9,936,332 31,103,113 2.43%2,737 2009 35,459,419 2,346,286 33,113,133 2.66%2,885 2010 33,423,982 2,363,382 31,060,600 2.61%2,701 2011 40,505,706 12,727,140 27,778,566 2.51%2,177 2012 36,247,151 12,952,896 23,294,255 1.91%1,801 2013 21,226,973 2,750,079 18,476,894 1.54%1,425 2014 23,143,003 3,919,070 19,223,933 1.27%1,480 Note1: Note2: Note3:SeetheScheduleofDemographicandEconomicStatistics. Source:Detailsregardingthecity’soutstandingdebtcanbefoundinthenotestobasicfinancialstatements. Doesnotincluderevenuebonds. SeetheScheduleofTaxableNetTaxCapacityValueandEstimatedMarketValueofTaxablePropertyforthe estimatedactualmarketvalue. 85 CITYOFMONTICELLO LegalDebtMarginInformation LastTenFiscalYears 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 17,640,766$19,872,946$23,203,682$37,303,833$38,074,842$35,646,663$33,196,242$36,591,591$35,671,296$45,407,112$ Totalnetdebtapplicable 6,910,000 6,650,000 6,100,000 6,180,000 5,585,000 4,985,000 4,365,000 3,795,000 6,200,000 13,065,653 10,730,766 13,222,946 17,103,682 31,123,833 32,489,842 30,661,663 28,831,242 32,796,591 29,471,296 32,341,459 Totalnetdebtapplicableto debtlimitasapercentage ofdebtlimit 39.2%33.5%26.3%16.6%14.7%14.0%13.1%10.4%17.4%28.8% Marketvalue 1,513,570,400$ Debtlimit(3%ofmarketvalue)45,407,112 Debtapplicabletolimit Othergeneralobligationbonds 26,282,000 Lessamountsforgeneralobligationbonds notsubjecttodebtlimit (13,216,347) Totalnetdebtapplicabletolimit 13,065,653 Legaldebtmargin 32,341,459$ Note: Legaldebtmargin LegalDebtMarginCalculationforFiscalYear2014 AllMinnesotamunicipalities(counties,cities,towns,andschooldistricts)aresubjecttostatutory “netdebt”limitationsundertheprovisionsofMinnesotaStatutes,§475.53.Underthisprovision, beginningwithissueshavingasettlementdateafterJune30,2008,thestateofMinnesota increasedthelegaldebtlimitfrom2percentto3percentoftheCity’staxablemarketvalue. FiscalYear Legaldebtlimit todebtlimit 86 CITYOFMONTICELLO ComputationofDirectandOverlappingDebt AsofDecember31,2014 Estimated Net percentage Amount bondeddebt applicable Overlapping applicableto Jurisdiction outstanding(1)tocity(2)debt city DIRECTDEBT: CityofMonticello 27,267,000$100.0%27,267,000$ OVERLAPPINGDEBT: I.S.D.882 6,980,000$75.5%5,269,900$ WrightCounty 48,670,000 18.3%8,906,610 TotalOverlappingDebt 14,176,510 Totaldirectandoverlappingdebt 41,443,510$ (1) (2) Note: Source:TheWrightCountyauditorprovidedthedebtoutstandingandestimatedapplicablepercentagesfortheschooldistrictandcounty. Grossbondeddebtoutstanding. Thepercentageofoverlappingdebtapplicableisestimatedusingtaxableassessedpropertyvalues.Applicablepercentageswereestimatedby determiningtheportionofthecounty’staxableassessedvaluethatiswithinthegovernment’sboundariesanddividingitbythecounty’stotaltaxable assessedvalue. Overlappinggovernmentsarethosethatcoincide,atleastinpart,withthegeographicboundariesoftheCity.Thisscheduleestimatestheportionofthe outstandingdebtofthoseoverlappinggovernmentsthatisbornebytheresidentsandbusinessesoftheCity.Thisprocessrecognizesthat,when consideringthegovernment’sabilitytoissueandrepaylong-termdebt,theentiredebtburdenbornebytheresidentsandbusinessesshouldbetaken intoaccount.However,thisdoesnotimplythateverytaxpayerisaresidentand,therefore,responsibleforrepayingthedebtofeachoverlapping government. 87 CITYOFMONTICELLO ScheduleofRevenueBondCoverage LastTwoFiscalYears SewageFund: NetRevenue Gross Operating Availablefor Year Revenues(1)Expenses(2)DebtService Principal Interest Total Coverage 2013 2,006,718$1,476,418$530,300$-$-$-$--- 2014 2,081,660 1,570,197 511,463 273,000 91,963 364,963 140.1% Notes:(1)Totalrevenuesdoesnotincludeinvestmentearnings. (2)Totaloperatingexpensesexcludingdepreciation. (3)Thefirstyearofbondpaymentsis2014.Scheduleexcludestelecommunicationsbonds. Nootherrevenuebondsexistedbefore2013. Source:FinanceDepartment DebtServiceRequirements(3) 88 CITYOFMONTICELLO DemographicandEconomicStatistics LastTenFiscalYears Per Estimated Capita Unemploy-School Personal Personal Year Population(1)mentrate(2)Enrollment(3)Income(4)Income(5) 2005 10,662 4.8%4,076 332,313,216$31,168$ 2006 11,136 4.4%3,962 358,590,336 32,201 2007 11,253 4.8%3,910 379,102,317 33,689 2008 11,366 5.7%3,921 391,740,556 34,466 2009 11,476 7.9%3,928 384,446,000 33,500 2010 11,501 8.8%3,932 410,252,171 35,671 2011 12,759 7.5%4,011 422,820,501 33,139 2012 12,935 6.2%4,044 477,596,640 37,196 2013 12,964 4.6%4,016 502,964,308 38,797 2014 12,993 3.8%4,089 506,727,000 39,000 Notes/sources: (1) (2) (3) (4) (5) 2010U.S.BureauofCensus;2005–2009and2011–2014MinnesotaStateDemographicCenterpopulationestimates. AnnualaverageunemploymentprovidedbytheMinnesotaDepartmentofEmployment&EconomicDevelopment. ISDNo.882enrollmentinformationwasobtainedfromthedistrictauditreport.Theenrollmentinformationisbasedontheresident ADMs(averagedailymembership)served. Thisestimatedpersonalincomenumberiscalculatedbytakingthepercapitapersonalincomeandmultiplyingitbythecity’s population.Alsoseenote(3)regardingthepercapitapersonalincomefigures. PercapitapersonalincomedataisprovidedbytheBureauofEconomicAnalysis.Monticello'sestimatesarebasedonWright Countyinformation.WrightCounty,whereMonticelloislocated,isthesmallest,relevantstatisticaltrackingarea. 89 CITYOFMONTICELLO PrincipalEmployers CurrentYearandNineYearsAgo Percentageof Percentageof TotalCity TotalCity Employer Employees Rank Employment Employees Rank Employment XcelEnergy(NorthernStates)(1)2,000 1 19.6%431 3 6.8% ISDNo.882(Monticello)544 2 5.3%478 1 7.6% CentraCareMedicalCenter(NewRiver)500 3 4.9%454 2 7.2% CargillKitchenSolutions(SunnyFresh)350 4 3.4%383 4 6.1% Wal-MartSupercenter 325 5 3.2% CubFoods 180 6 1.8%140 5 2.2% UltraMachineCorporation 173 7 1.7%120 8 1.9% HomeDepot 160 8 1.6% CityofMonticello 150 9 1.5%130 6 2.1% HoglundBus/HoglundTruck 88 10 0.9% PerkinsFamilyRestaurant 122 7 1.9% K-Mart 100 9 1.6% MonticelloClinic 96 10 1.5% 4,470 46.9%2,454 39.0% Note1:Temporaryincreaseisduetouprate.Typicalemploymentisapproximately420employees. Source:CityofMonticello2014BudgetandtheCityofMonticello2014BondStatement 2014 2005 90 CITYOFMONTICELLO CityGovernmentEmployeesbyFunction/Program LastTenFiscalYears 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Employeesbyfunction GeneralFund Generalgovernment 11.60 11.60 11.60 12.60 12.60 14.00 14.00 14.00 14.00 15.50 Publicworks Engineering 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 1.00 2.00 Maintenance(1)21.50 21.50 21.50 21.50 19.50 19.50 19.00 19.00 19.00 18.50 Cultureandrecreation Parks 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Communitydevelopment 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 SpecialRevenueFunds Cultureandrecreation Communitycenter-FT 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 7.50 Communitycenter-PT(2)36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 EnterpriseFunds Sewer/water 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Deputyregistrar(3)5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Liquorstore 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 11.50 FiberNet ––––6.00 11.00 11.50 11.50 8.50 8.50 Total 106.60 106.60 106.60 107.60 111.60 118.00 118.00 118.00 113.00 116.00 Employeesbyfundtype GeneralFund 43.10 43.10 43.10 44.10 42.10 43.50 43.00 43.00 41.00 43.00 SpecialRevenueFunds 44.50 44.50 44.50 44.50 44.50 44.50 44.50 44.50 44.50 44.00 EnterpriseFunds 19.00 19.00 19.00 19.00 25.00 30.00 30.50 30.50 27.50 29.00 106.60 106.60 106.60 107.60 111.60 118.00 118.00 118.00 113.00 116.00 FT=Full-time PT=Part-time Notes: (1)Includesseasonalpublicworks (2)Years2005-2013wereestimated2014levelsasdatawasnotpreviouslytracked. (3)Priorto2013,thedeputyregistrarfunctionwasincludedwithgeneralgovernment.Prioryearswererestated. FiscalYear 91 CITYOFMONTICELLO OperatingIndicatorsbyFunction LastTenFiscalYears 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Function Fire Callsforservice 325 266 317 395 375 282 284 203 235 264 Publicworks Salt(tons)114 164 274 474 475 521 445 300 475 385 Sand(tons)320 319 347 611 615 710 547 335 325 600 Cracksealant(pounds)n/a 11,115 14,200 18,150 15,000 23,580 11,384 1,492 25,739 23,282 Asphaltrepairs(tonsofasphalt)n/a 300 330 200 200 200 253 220 225 190 Cultureandrecreation Shadetreesplanted ––384 410 425 150 140 220 275 270 Diseasedtreesremoved n/a n/a n/a 868 200 180 113 205 71 46 Trailsmaintained(miles)n/a n/a n/a 17 17 17 17 17 18 18 Communitycenterusers n/a 145,700 168,923 186,429 186,279 183,527 190,014 175,272 211,234 204,134 Programsales n/a 67,021 88,412 129,339 149,829 167,723 168,159 162,227 192,708 184,125 Rentalrevenue n/a 148,533 139,096 136,547 127,612 184,913 154,962 149,733 163,329 150,964 Economicdevelopment Permitsissued 1,412 1,323 962 3,681 879 495 372 632 659 721 Permitvaluation 68,069,444$45,572,690$45,917,000$45,950,000$11,630,000$9,033,078$5,333,124$12,285,873$15,821,223$19,714,895$ Water Metersreplaced 81 109 94 111 280 145 215 418 235 598 Curbboxrepairs(watervalves)50 50 50 75 200 200 200 100 100 100 Hydrantrepair 175 175 175 175 175 175 430 300 300 203 Annualresidentialwateruse 344,197,058 419,892,135 467,673,488 409,879,658 430,263,791 376,687,840 348,580,072 426,358,402 383,079,041 328,835,772 Avg.dailyconsumption(MG)1.569 1.817 1.921 1.749 1.806 1.625 1.557 1.798 1.621 1.400 Max.dailygallonspumped(MG)4.889 5.271 5.150 4.728 4.496 3.565 4.116 4.590 4.269 4.031 Sewer Sewageflow(MG)434 414 423 408 390 398 431 408 392 435 Milesjetted 20 20 20 20 20 25 27 12 20 16 Blocksrodded 3 3 3 3 3 25 10 20 10 20 Milesinspected 20 20 20 20 20 30 30 12 20 20 Library Itemscheckedout n/a 188,704 209,174 216,599 219,694 248,327 228,886 237,938 263,220 199,182 Programsoffered n/a 232 145 155 170 164 153 149 173 169 Programparticipants n/a 4,196 3,537 3,869 4,100 3,604 3,807 3,761 3,773 3,788 FiscalYear (continued) 92 CITYOFMONTICELLO OperatingIndicatorsbyFunction LastTenFiscalYears (continued) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Operatingindicators(continued) Fiberoptics Customers n/a n/a n/a n/a n/a n/a n/a n/a n/a 1,539 Servicesubscriptions n/a n/a n/a n/a n/a n/a n/a n/a n/a 2,755 TVcustomers n/a n/a n/a n/a n/a n/a n/a n/a n/a 813 Phonecustomers n/a n/a n/a n/a n/a n/a n/a n/a n/a 582 Internetcustomers n/a n/a n/a n/a n/a n/a n/a n/a n/a 1,360 Liquorstore Transactions n/a n/a n/a n/a n/a n/a n/a n/a n/a 229,236 Averageliquorsaletransaction n/a n/a n/a n/a n/a n/a n/a n/a n/a 21.90$ Beersales n/a n/a n/a 2,066,537$2,187,948$2,289,801$2,328,735$2,483,194$2,539,168$2,604,942$ Liquorsales n/a n/a n/a 1,129,351$1,214,817$1,251,448$1,343,109$1,396,521$1,506,776$1,546,118$ Winesales n/a n/a n/a 492,183$575,521$657,562$748,908$812,832$860,817$868,779$ Grossprofitmargin%-beer n/a n/a n/a 20.7%15.7%20.4%19.1%20.3%22.5%21.4% Grossprofitmargin%-liquor n/a n/a n/a 23.9%26.8%29.6%28.0%29.3%27.7%30.3% Grossprofitmargin%-wine n/a n/a n/a 17.0%20.2%26.8%28.5%31.4%29.7%30.7% Deputyregistrar(DMV) Motorvehicletransactions 46,492 45,225 40,950 45,595 48,000 51,250 54,814 56,211 55,261 60,051 DNRtransactions n/a 5,307 5,580 5,913 5,646 5,982 5,616 5,465 5,727 5,949 Game/fishtransactions n/a n/a 167 235 250 156 325 509 445 433 Dealershipsserviced n/a 18 14 21 25 30 34 38 21 23 Driverslicensestransactions n/a n/a n/a n/a 450 605 579 814 951 1,462 Netrevenuepertransaction n/a n/a n/a n/a n/a n/a 1.71$2.75$2.68$2.91$ N/A=NotAvailable MG=MillionsofGallons Note:Indicatorsarenotavailableforthegeneralgovernmentfunction. Sources:Variouscitydepartments FiscalYear 93 CITYOFMONTICELLO CapitalAssetsStatisticsbyFunction LastTenFiscalYears 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Function Publicsafety Fire Firestationsinservice 1 1 1 1 1 1 1 1 1 1 Numberofvolunteers 30 30 30 30 30 30 30 30 30 30 Publicworks Streets(miles)52.4 65.7 67.6 67.6 68.0 68.0 68.0 68.0 68.0 68.0 Recreationandculture Parksacreage –––120 180 509 635 635 696 860 Parks 18 19 19 20 20 28 28 28 28 30 Parkbuildings 9 9 9 10 11 15 15 15 15 15 Communitycenter(squarefootage)81,000 81,000 81,000 81,000 81,000 81,000 81,000 81,000 82,000 82,000 Water Firehydrants 700 700 700 700 700 700 700 700 700 700 Note:Nocapitalassetindicatorsareavailableforthegeneralgovernmentandeconomicdevelopmentfunctions. Source:Variouscitydepartments 94 BackCover CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA Special Purpose Audit Reports on Internal Controls and Compliance With Laws and Regulations Year Ended December 31, 2014 THIS PAGE INTENTIONALLY LEFT BLANK Page Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 1–2 Independent Auditor’s Report on Minnesota Legal Compliance3 Schedule of Findings and Responses4–5 CITY OF MONTICELLO Special Purpose Audit Reports Year Ended December 31, 2014 Table of Contents THIS PAGE INTENTIONALLY LEFT BLANK -1- INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the City Council and Management City of Monticello, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Monticello, Minnesota (the City) as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 25, 2015. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. (continued) -2- COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota June 25, 2015 -3- INDEPENDENT AUDITOR’S REPORT ON MINNESOTA LEGAL COMPLIANCE To the City Council and Management City of Monticello, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Monticello, Minnesota (the City) as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 25, 2015. MINNESOTA LEGAL COMPLIANCE The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the Office of the State Auditor pursuant to Minnesota Statute § 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 Political Subdivisions, except as described in the Schedule of Findings and Responses as items 2014-001 and 2014-002. 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 City’s responses to the legal compliance findings identified in our audit have been included in the Schedule of Findings and Responses. The City’s responses were not subject to the auditing procedures applied in our audit of the financial statements and, accordingly, we express no opinion on them. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota June 25, 2015 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF MONTICELLO Schedule of Findings and Responses Year Ended December 31, 2014 -4- FINDINGS – MINNESOTA LEGAL COMPLIANCE AUDIT 2014-001 PAYROLL – TIME SHEET DECLARATION Criteria – Minnesota Statute § 412.271, Subd. 2, paragraph (b), requires supervisors, or other officers or employees having knowledge of the facts, to sign a declaration indicating the facts recited on the payroll are correct to the best of the declarant’s information and belief. The statute also requires that claims for payroll be signed in proper forms or with a declaration to the effect that the employee has received the wages and has done the work for which wages have been paid. Condition – During the audit procedures for the year ended December 31, 2014, we noted that the time sheets for two community center employees and two Fibernet employees did not have the required signed declarations from supervisors indicating the payrolls are correct. Context – We noted 4 of 25 time sheets tested that were not in compliance. This is a current and prior year finding. Cause – This was an oversight by city personnel. Effect – Employees could be receiving wages for which they have not done the work. Recommendation – We recommend that the City of Monticello, Minnesota (the City) obtain the proper signed declaration of approval to the effect that the facts recited on the payroll are correct to the best of the declarant’s information and belief. Management Response – There is no disagreement with the audit finding. The City will review its internal payroll authorization process and make any necessary changes to prevent future occurrences of this finding. 2014-002 PAYMENT OF INVOICES Criteria – Minnesota Statute § 471.425, Subd. 2. Condition – Minnesota Statutes require prompt payment of local government bills within a standard payment period of 35 days from the receipt of goods and services for governing boards that meet at least once a month. One disbursement tested was not paid within the statutory time limit. Context – One of forty disbursements tested was not in compliance. This is a current and prior year finding. Cause – This was an oversight by city personnel. Effect – Certain payments made to vendors were not paid within the timeframe as required by state statutes. CITY OF MONTICELLO Schedule of Findings and Responses (continued) Year Ended December 31, 2014 -5- FINDINGS – MINNESOTA LEGAL COMPLIANCE AUDIT (CONTINUED) 2014-002 PAYMENT OF INVOICES (CONTINUED) Recommendation – We recommend that the City review current procedures in place to ensure that all invoices are paid within statutory requirements. Management Response – There is no disagreement with the audit finding. The City will review its procedures in place to ensure future compliance with the statute. Management Report for City of Monticello, Minnesota December 31, 2014 THIS PAGE INTENTIONALLY LEFT BLANK To the City Council and Management City of Monticello, Minnesota We have prepared this management report in conjunction with our audit of the City of Monticello, Minnesota’s (the City) financial statements for the year ended December 31, 2014. The purpose of this report is to provide comments resulting from our audit process and to communicate information relevant to city finances in Minnesota. We have organized this report into the following sections:  Audit Summary  Governmental Funds Overview  Enterprise Funds Overview  Government-Wide Financial Statements  Legislative Updates  Accounting and Auditing Updates We would be pleased to further discuss any of the information contained in this report or any other concerns that you would like us to address. We would also like to express our thanks for the courtesy and assistance extended to us during the course of our audit. The purpose of this report is solely to provide those charged with governance of the City, management, and those who have responsibility for oversight of the financial reporting process comments resulting from our audit process and information relevant to city finances in Minnesota. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota June 25, 2015 THIS PAGE INTENTIONALLY LEFT BLANK -1- AUDIT SUMMARY The following is a summary of our audit work, key conclusions, and other information that we consider important or that is required to be communicated to the City Council, administration, or those charged with governance of the City. OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA AND GOVERNMENT AUDITING STANDARDS We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2014, and the related notes to the financial statements. Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to you verbally and in our audit engagement letter. Professional standards also require that we communicate the following information related to our audit. PLANNED SCOPE AND TIMING OF THE AUDIT We performed the audit according to the planned scope and timing previously discussed and coordinated in order to obtain sufficient audit evidence and complete an effective audit. AUDIT OPINION AND FINDINGS Based on our audit of the City’s financial statements for the year ended December 31, 2014:  We have issued an unmodified opinion on the City’s basic financial statements.  We reported no deficiencies in the City’s internal control over financial reporting that we considered to be material weaknesses.  The results of our testing disclosed no instances of noncompliance required to be reported under Government Auditing Standards.  We reported two findings based on our testing of the City’s compliance with Minnesota laws and regulations: o The City is required by Minnesota Statute § 412.271, Subd. 2, paragraph (b) to have supervisors sign a declaration indicating the facts recited on the payroll are correct to best of the declarant’s information and belief. We noted that for 4 of 25 claims for payroll, 2 community center employees and 2 Fibernet employees, the City did not receive the required signed approval declaration. This is a current and prior year finding. o We noted that 1 of 40 disbursements tested was not paid within the 35-day period as required by Minnesota Statute § 471.425, Subd. 2. This is a current and prior year finding. FOLLOW-UP ON PRIOR YEAR FINDINGS AND RECOMMENDATIONS As a part of our audit of the City’s financial statements for the year ended December 31, 2014, we performed procedures to follow-up on the findings and recommendations that resulted from our prior year audit. We reported the following findings that were corrected by the City in the current year:  In the prior year, we reported a material weakness in the City’s internal controls over financial reporting due to the City having recorded a prior period adjustment to correct a material error in the previous year’s financial statements. There was no similar finding in the current year. -2- SIGNIFICANT ACCOUNTING POLICIES Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 of the notes to basic financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the fiscal year ended December 31, 2014. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:  Depreciation – Management’s estimates of depreciation expense are based on the estimated useful lives of the assets.  Net Other Post-Employment Benefit (OPEB) Liabilities – Actuarial estimates of the net OPEB obligation is based on eligible participants, estimated future health insurance premiums, and estimated retirement dates.  Land Held for Resale – These assets are stated at the lower of cost or net realizable value based on management’s estimates.  Compensated Absences – Management’s estimate is based on current rates of pay and sick leave balances.  Allowance for Doubtful Accounts – Management’s estimate of the allowance for doubtful accounts is based on historical revenues, historical loss levels, and an analysis of the collectability of individual accounts. We evaluated the key factors and assumptions used by management to develop these estimates in determining that they are reasonable in relation to the basic financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. CORRECTED AND UNCORRECTED MISSTATEMENTS Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Where applicable, management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management, when applicable, were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no significant difficulties in dealing with management in performing and completing our audit. -3- DISAGREEMENTS WITH MANAGEMENT For purposes of this report, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. MANAGEMENT REPRESENTATIONS We have requested certain representations from management that are included in the management representation letter dated June 25, 2015. MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. OTHER AUDIT FINDINGS OR ISSUES We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER MATTERS We applied certain limited procedures to Management’s Discussion and Analysis, and budgetary comparison schedules for the General Fund and major special revenue funds, and Schedules of Funding Progress for the Monticello Fire Department Relief Association Pension Plan, and the City of Monticello Other Post-Employment Benefits Plan, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual fund statements accompanying the financial statements, which are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section, other supplementary schedules, and the statistical section, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. -4- GOVERNMENTAL FUNDS OVERVIEW This section of the report provides you with an overview of the financial trends and activities of the City’s governmental funds, which includes the General, special revenue, debt service, and capital project funds. These funds are used to account for the basic services the City provides to all of its citizens, which are financed primarily with property taxes. The governmental fund information in the City’s financial statements focuses on budgetary compliance, and the sufficiency of each governmental fund’s current assets to finance its current liabilities. PROPERTY TAXES Minnesota cities rely heavily on local property tax levies to support their governmental fund activities. For the 2013 fiscal year, local property tax levies provided 41.1 percent of the total governmental fund revenues for cities over 2,500 in population, and 35.5 percent for cities under 2,500 in population. Property tax levies certified by Minnesota cities for 2014 increased about 1.6 percent over 2013, compared to an increase of 2.3 percent the prior year. This moderate increase was due in part to a one-year levy limit for 2014 imposed on cities over 2,500 in population. The total market value of Minnesota cities increased about 1.1 percent for the 2014 levy year, ending a four-year trend of declining market values that began in 2010 and peaked with a state-wide decline of about 8.8 percent for levy year 2012. Market values showed modest increases in all property categories for 2014, with the largest gains in agricultural and non-homestead residential properties. Because the assessed valuation used for levying property taxes is based on values from the previous fiscal year (e.g. the market value for taxes payable in 2014 is based on estimated values as of January 1, 2013), market value improvement has lagged behind recent upturns in the housing market and the economy in general. The City’s taxable market value increased 10.2 percent for taxes payable in 2013, but decreased 1.5 percent for taxes payable in 2014. The following graph shows the City’s changes in taxable market value over the past 10 years: $– $200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 $1,200,000,000 $1,400,000,000 2005200620072008200920102011201220132014 Taxable Market Value -5- Tax capacity is considered the actual base available for taxation. It is calculated by applying the state’s property classification system to each property’s market value. Each property classification, such as commercial or residential, has a different calculation and uses different rates. Consequently, a city’s total tax capacity will change at a different rate than its total market value, as tax capacity is affected by the proportion of the City’s tax base that is in each property classification from year-to-year, as well as legislative changes to tax rates. The City’s tax capacity for taxes payable in 2013 increased 17.7 percent and decreased 2.8 percent in 2014. The following graph shows the City’s change in tax capacities over the past 10 years: $– $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 2005200620072008200920102011201220132014 Local Tax Capacity The following table presents the average tax rates applied to city residents for each of the last two levy years, along with comparative state-wide rates. Rates expressed as a percentage of net tax capacity 20132014 20132014 Average tax rate City48.8 48.8 42.3 44.7 County48.5 47.6 44.3 43.4 School28.5 28.9 26.2 28.3 Special taxing7.2 7.3 0.6 – Total133.0132.6 113.4116.4 City of Monticello All Cities State-Wide Fiscal 2013 and 2014 average tax rates are below state-wide averages for the first time in several years as a result of improved market values and tax capacities in 2013. The increase in market values and local tax capacity in 2013 is related to significant increases to market values at the Xcel power plant. -6- GOVERNMENTAL FUNDS REVENUE AND EXPENDITURES The following table presents the per capita revenue of the City’s governmental funds for the past three years, along with state-wide averages. We have included the most recent comparative state-wide averages available from the Office of the State Auditor to provide a benchmark for interpreting the City’s data. The amounts received from the typical major sources of governmental fund revenue will naturally vary between cities based on factors such as the City’s stage of development, location, size and density of its population, property values, services it provides, and other attributes. It will also differ from year-to-year due to the effect of inflation and changes in the City’s operation. Also, certain data on these tables may be classified differently than how they appear on the City’s financial statements in order to be more comparable to the state-wide information, particularly in separating capital expenditures from current expenditures. We have designed this section of our management report using per capita data in order to better identify unique or unusual trends and activities of your city. We intend for this type of comparative and trend information to complement, rather than duplicate, information in the Management’s Discussion and Analysis. An inherent difficulty in presenting per capita information is the accuracy of the population count, which for most years is based on estimates. Year 201220132014 Population2,500–10,000 10,000–20,000 20,000–100,000 12,93512,96412,993 Property taxes422$ 388$ 423$ 637$ 616$ 647$ Tax increments30 42 40 79 75 64 Franchise fees and other taxes31 39 34 26 25 28 Special assessments63 58 72 147 159 147 Licenses and permits27 26 38 21 26 29 Intergovernmental revenues253 268 148 42 98 56 Charges for services109 84 91 161 142 131 Other56 33 30 119 40 91 Total revenue991$ 938$ 876$ 1,232$ 1,181$ 1,193$ December 31, 2013 City of Monticello Governmental Funds Revenue per Capita With State-Wide Averages by Population Class State-Wide The City has generated more property tax revenue for its governmental funds revenue compared to the average Minnesota city. The City continues to generate more tax increment revenue per capita than average, as it has made use of this tool to finance commercial development. The City generates more special assessment revenue (typically used for new development) as the City continues to be in a growth phase. The City’s per capita governmental funds revenue for 2014 was $1,193, an increase of about 1.0 percent from the prior year. Property taxes increased $31 per capita as the City’s tax levy and excess tax increment collections increased in 2014. Other revenue also increased $51 per capita, mainly as a result of a positive market value adjustment on the City’s investment portfolio in 2014. These increases were offset by a decrease in intergovernmental revenues of $42 per capita due to a significant amount of state aid revenues received for specific projects in the prior year. -7- The expenditures of governmental funds will also vary from state-wide averages and from year-to-year, based on the City’s circumstances. Expenditures are classified into three types as follows:  Current – These are typically the general operating type expenditures occurring on an annual basis, and are primarily funded by general sources such as taxes and intergovernmental revenues.  Capital Outlay and Construction – These expenditures do not occur on a consistent basis, more typically fluctuating significantly from year-to-year. Many of these expenditures are project-oriented, and are often funded by specific sources that have benefited from the expenditure, such as special assessment improvement projects.  Debt Service – Although the expenditures for debt service may be relatively consistent over the term of the respective debt, the funding source is the important factor. Some debt may be repaid through specific sources such as special assessments or redevelopment funding, while other debt may be repaid with general property taxes. The City’s expenditures per capita of its governmental funds for the past three years, together with state-wide averages, are presented in the following table: Year 201220132014 Population2,500–10,000 10,000–20,000 20,000–100,000 12,93512,96412,993 Current 129$ 100$ 83$ 156$ 122$ 112$ 244 235 239 134 139 142 123 121 91 132 132 138 83 99 85 176 191 184 66 73 91 101 117 124 645 628 589 699 701 700 Capital outlay and construction303 288 219 219 105 171 Debt service 164 133 102 400 408 416 55 43 39 100 72 51 219 176 141 500 480 467 Total expenditures1,167$ 1,092$ 949$ 1,418$ 1,286$ 1,338$ Governmental Funds Expenditures per Capita With State-Wide Averages by Population Class City of Monticello Principal December 31, 2010 State-Wide Interest and fiscal charges General government Public safety Street maintenance and lighting Recreation and culture All other The City’s governmental funds current per capita expenditures are higher than state-wide averages for cities in the same population class. The City’s per capita expenditures for capital outlay and construction will vary on a yearly basis depending on current, ongoing capital projects. Debt service costs are significantly higher than other cities state-wide due to the stage of development of the City. -8- GOVERNMENTAL FUND BALANCES The following table summarizes the changes in the fund balances of the City’s governmental funds during the years ended December 31, 2013 and 201420132013201320132013201320132013, presented both by fund balance classification and by fund: Increase 20132014 (Decrease) Fund balances of governmental funds Total by classification Nonspendable2,081,026$ 1,941,414$ (139,612)$ Restricted10,928,985 10,453,449 (475,536) Assigned6,485,727 7,321,744 836,017 Unassigned3,656,463 4,204,731 548,268 Total governmental funds 23,152,201$ 23,921,338$ 769,137$ Total by fund Major funds General3,914,563$ 4,331,058$ 416,495$ Community Center271,204 440,824 169,620 Economic Development Authority7,115,305 6,911,674 (203,631) Debt Service2,750,079 3,919,070 1,168,991 Capital Projects3,479,694 2,895,619 (584,075) Park and Pathway Dedication973,433 738,333 (235,100) Nonmajor funds4,647,923 4,684,760 36,837 Total governmental funds 23,152,201$ 23,921,338$ 769,137$ Governmental Fund Changes in Fund Balance Fund Balance as of December 31, As reflected in the table above, total governmental fund balance increased by $769,137. The increase was largely due to the increase in fund balance in the General Fund. -9- GENERAL FUND The City’s General Fund accounts for the financial activity of the basic services provided to the community. The primary services included within this fund are the administration of the municipal operations, police and fire protection, building inspection, streets and highway maintenance, and recreation and culture. The following graph displays the City’s General Fund trends of financial position and changes in the volume of financial activity. Fund balance and cash balance are typically used as indicators of financial health or equity, while annual expenditures are often used to measure the size of the operation. $– $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 $6,500,000 $7,000,000 $7,500,000 $8,000,000 $8,500,000 2005200620072008200920102011201220132014 General Fund Financial Position Year Ended December 31, Fund Balance Cash Balance (Including Interfund Borrowing)Expenditures The City’s General Fund cash and investments balance (including interfund borrowing) at December 31, 2014 was $4,639,206, which increased $618,266 from 20132013201320132013201320132013. Total fund balance at December 31, 2014 was $4,331,058, up $416,495. This fund balance level represents approximately 67.6 percent of the City’s annual General Fund expenditures, based on 2014 expenditure levels. The City’s adopted fund balance policy requires that the City set aside fund balance to represent 45 percent of expenditures for working capital and contingencies. Having an appropriate fund balance is an important factor because a government, like any organization, requires a certain amount of equity to operate. Generally, the amount of equity required typically increases as the size of the operation increases. A healthy financial position also allows the City to avoid volatility in tax rates; helps minimize the impact of state funding changes; allows for the adequate and consistent funding of services, repairs, and unexpected costs; and can be a factor in determining the City’s bond rating and resulting interest costs. -10- The following illustrations provide you with the components of the City’s General Fund revenue compared to budget for 2014: Other Charges for Services Intergovernmental Licenses and Permits Property Taxes General Fund Revenue Budget to Actual Budget Actual Total General Fund revenues for 2014 were $7,119,002, which was $359,002 (5.3 percent) over the final budget. As reflected in the table above, other revenues were over budget by $198,384, which was mainly due to small amounts over budget spread across many categories. Licenses and permits revenue also exceeded budgeted amounts by $105,130 as a result of conservative budgeting in the revenue category. The following graph presents the City’s General Fund revenue sources for the last five years. $– $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 $2,800,000 $3,200,000 $3,600,000 $4,000,000 $4,400,000 $4,800,000 $5,200,000 $5,600,000 $6,000,000 TaxesIntergovernmentalOther General Fund Revenue by Source Year Ended December 31, 2010 2011 2012 2013 2014 The graph reflects the City’s increasing reliance on taxes to finance its General Fund operations. Overall, General Fund revenues increased $130,657 (1.9 percent) from the previous year. Property taxes decreased $77,143 due to a decrease in the General Fund tax levy. Other revenues increased $299,140 due to the market value adjustment on investments reported in the current year in a sharp contrast to the negative adjustment on investments reported in the prior year. -11- The following graphs illustrate the components of General Fund spending for 2014 compared to budget: General Governmental Public Safety Public Works Recreation and Culture Other General Fund Expenditures Budget to Actual Budget Actual Total General Fund expenditures for 2014 were $6,409,507, which was $257,493 (3.9 percent) under budget. The public works area was under budget by $125,176, mainly in street repairs. Recreation and culture was under budget by $128,296 mainly within park operations. The following illustrations provide you with the components of the City’s General Fund spending by function for the past five years: $– $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 General Governmental Public SafetyPublic WorksRecreation and Culture Other General Fund Expenditures by Function Year Ended December 31, 2010 2011 2012 2013 2014 Overall, General Fund expenditures decreased $50,782 (0.8 percent) from the prior year. General government expenditures decreased $104,602, which was mainly due to decreased spending for information technology services. This was offset by an increase in public works by $92,724 due to increased costs for street repairs. -12- ENTERPRISE FUNDS OVERVIEW The City maintains a number of enterprise funds to account for services the City provides that are financed primarily through fees charged to those utilizing the service. This section of the report provides you with an overview of the financial trends and activities of the City’s enterprise funds, which includes the Water Utility, Sewage Utility, Liquor Operations, Fiber Optics, and Deputy Registrar Funds. ENTERPRISE FUNDS FINANCIAL POSITION The following table summarizes the changes in the financial position of the City’s enterprise funds during the years ended December 31, 2013 and 201420132013201320132013201320132013, presented both by classification and by fund: Increase 20132014 (Decrease) Net position of enterprise funds Total by classification Net investment in capital assets20,496,832$ 42,117,264$ 21,620,432$ Unrestricted6,461,685 9,112,037 2,650,352 Total enterprise funds 26,958,517$ 51,229,301$ 24,270,784$ Total by fund Water15,220,444$ 14,901,305$ (319,139)$ Sewage22,564,278 20,761,130 (1,803,148) Liquor979,250 987,433 8,183 Fiber Optics(12,030,506) 14,198,557 26,229,063 Deputy Registrar225,051 380,876 155,825 Total enterprise funds 26,958,517$ 51,229,301$ 24,270,784$ Enterprise Funds Change in Financial Position Net Position as of December 31, In total, the net position of the City’s enterprise funds increased by $24,270,784 during the year ended December 31, 2014. A special item contributed to the significant increase in net position in the Fiber Optics Fund. The fund experienced a $21 million gain on extinguishment of debt. The Fiber Optics Fund also received a total of $6.4 million of transfers from other funds related to judgement bonds issued in the current year. The Sewage Fund operating decline relates to a transfer of $1.7 million to the debt service fund to finance outstanding debt obligations. -13- WATER ENTERPRISE FUND The following graph presents 10 years of comparative operating results for the City’s Water Enterprise Fund: $– $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 $1,400,000 2005200620072008200920102011201220132014 Water Enterprise Fund Year Ended December 31, Operating Revenue Operating Expense Operating Income Before Depreciation At December 31, 2014, the Water Enterprise Fund had a cash balance of $4,377,060 and a net position balance of $14,901,305. Net position consisted of $10,149,892 in net investment in capital assets and $4,751,413 in unrestricted net position. Operating revenue in the Water Enterprise Fund is $1,117,226, a decrease of $121,857 from the prior year. This decrease is related to a significant decrease in consumption, mostly related to colder weather conditions in 2014. Water Enterprise Fund operating expenses for 2014 were $1,086,006, an increase of $76,134, which is mainly due to the increase in supplies and maintenance for the purchase and installation of water meters. It is important that this fund continue to have positive operating results so as not to place an additional burden on other city funds. It is also important that the City continue to monitor water rates so that they are designed to also provide for future repairs and replacement of the infrastructure assets. -14- SEWAGE ENTERPRISE FUND The following graph presents 10 years of comparative operating results for the City’s Sewage Enterprise Fund: $(200,000) $– $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 $2,200,000 $2,400,000 $2,600,000 $2,800,000 2005200620072008200920102011201220132014 Sewage Enterprise Fund Year Ended December 31, Operating Revenue Operating Expense Operating Income (Loss) Before Depreciation At December 31, 2014, the Sewage Enterprise Fund had a cash balance of $2,982,398 and a net position balance of $20,761,130. Net position consisted of $17,618,227 in net investment in capital assets and $3,142,903 of unrestricted net position. Sewage Enterprise Fund operating revenues for 2014 were $2,081,660, which is $74,942 more than the previous year. Operating expenses for 2014 were $2,676,729, which is $292,805 higher than 20132013201320132013201320132013. This increase is due to increased engineering fees and waste water treatment plant services all related to projects the City completed in 2014. It is important that this fund have positive operating results so as not to place an additional burden on other city funds. It is also important that the City continue to monitor sewage rates so they are designed to also provide for future repairs and replacement of infrastructure assets. -15- LIQUOR ENTERPRISE FUND The following graph presents 10 years of operating results for the Liquor Enterprise Fund: $– $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 $2,800,000 $3,200,000 $3,600,000 $4,000,000 $4,400,000 $4,800,000 $5,200,000 2005200620072008200920102011201220132014 Liquor Enterprise Fund Year Ended December 31, Sales Cost of Sales Operating Expenses Operating Income (Loss) The Liquor Enterprise Fund ended 2014 with a net position balance of $987,433, an increase of $8,183 from the prior year. Of the net position balance, $264,790 represents the investment in liquor capital assets, leaving $722,643 of unrestricted net position. Liquor sales for 2014 were $5,165,737, an increase of $79,813 (1.6 percent) from last year. Sales have steadily increased over the last several years, increasing by about 45.9 percent since 2005. The Liquor Enterprise Fund generated a gross profit of $1,289,040 in 2014, or about 25.0 percent, of gross sales. The Liquor Enterprise Fund’s gross profit margin declined slightly after improving over the prior two years. Operating expenses for 2014 were $694,567, an increase of $4,618 from last year. -16- FIBER OPTICS ENTERPRISE FUND The following graph presents five years of operating results for the Fiber Optics Enterprise Fund: $(1,500,000) $(1,000,000) $(500,000) $– $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 20102011201220132014 Fiber Optics Enterprise Fund Year Ended December 31, Operating Revenue Operating Expense Operating Income (Loss) Before Depreciation At December 31, 2014, the Fiber Optics Enterprise Fund had a cash balance of $42,559 and a net position balance of $14,198,557. Net position consisted of $14,036,591 in net investment in capital assets and $161,966 of unrestricted net position. Operating revenue in this fund was $1,761,978, an increase of $140,316, or 8.7 percent, in 2014. Operating expenses declined $493,347 in fiscal 2014. This was mainly due to decreased professional fees, including lower legal costs and software and maintenance agreements in fiscal 2014. The operating loss before depreciation in this fund during this year was $606,176. This was an improvement of $665,775 in the current year, mostly related to decreased operating expenses as previously discussed. As a result of improved but still poor operating results, we recommend the City continue to monitor the financial results of this fund. The continued monitoring of this fund would include a discussion on how the current financial results compare to the future strategic plan for this fund. Most importantly, the future strategic plan should continue to include a discussion on the impact this fund is having on the overall financial health of the City, including what impact the changes made to the plan are expected to have on the City as a whole in the short-term but also over the long-term. -17- Legal Settlement With Revenue Bondholders Resulting in Gain on Extinguishment of Debt On June 6, 2012, the City notified the trustee for the $26,445,000 Monticello Telecommunications Revenue Bonds, Series 2008 that it would no longer make monthly sinking fund payments from supplemental sources. A technical default occurred on July 1, 2012, when the City failed to make the sinking fund payment. On December 1, 2012, the first payment default occurred, as the trustee opted not to tap the $2.3 million in the bond reserve funds in order to make an $882,669 interest payment due on that date. A second non-payment default occurred on June 1, 2013, when an $882,669 interest and $85,000 principal payment was not made. A third non-payment default occurred on December 1, 2013, when an $879,906 interest payment was not made. Under the threat of litigation from bondholders, the City entered into a tolling agreement with the trustee on April 1, 2013 in order to permit time for good faith negotiations toward a settlement agreement. On October 2, 2013, the City and trustee, on behalf of bondholders, entered into a settlement agreement whereby the City would pay a $5.75 million settlement (21.7 percent of original par) in exchange for release from all future debt service requirements on the bonds, release from any future claims from bondholders, and the ability to continue to own and operate the telecommunications enterprise. The settlement agreement received approval by state and federal courts in 2014. The City sold tax-supported general obligations bonds in December 2014 and paid the settlement amount prior to year-end. The extinguishment of debt resulted in a $20,990,451 Fiber Optics Fund gain on extinguishment of debt, which is reported as a special item in the Statement of Activities and the Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds. The gain is calculated by subtracting the $5.75 million settlement and amounts held in trust accounts from the par value of bonds outstanding plus accrued interest payable. -18- DEPUTY REGISTRAR ENTERPRISE FUND The following graph presents seven years of comparative operating results for the City’s Deputy Registrar Enterprise Fund: $– $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 2008200920102011201220132014 Deputy Registrar Fund Year Ended December 31, Operating Revenue Operating Expense Operating Income (Loss) before depreciation At December 31, 2014, the Deputy Registrar Enterprise Fund had a cash balance of $363,479 and a net position balance of $380,876. Net position consisted of $47,764 in net investment in capital assets and $333,112 of unrestricted net position. Deputy Registrar Enterprise Fund operating revenues for 2014 were $497,798, which is $41,414 more than the previous year mostly due to an increase in charges for services. Operating expenses for 2014 were $302,709, which is $8,571 higher than 20132013201320132013201320132013. As shown in the above graph, operating income before depreciation has been steadily increasing over the past several years. -19- GOVERNMENT-WIDE FINANCIAL STATEMENTS In addition to fund-based information, the current reporting model for governmental entities also requires the inclusion of two government-wide financial statements designed to present a clear picture of the City as a single, unified entity. These government-wide statements provide information on the total cost of delivering services, including capital assets and long-term liabilities. STATEMENT OF NET POSITION The Statement of Net Position essentially tells you what your city owns and owes at a given point in time, the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to use for providing services after its debts are settled. However, those resources are not always in spendable form, or there may be restrictions on how some of those resources can be used. Therefore, net position is divided into three components: net investment in capital assets, restricted, and unrestricted. The following table presents the components of the City’s net position as of December 31, 2013 and 2014, for governmental activities and business-type activities: Increase 20132014 (Decrease) Net position Governmental activities Net investment in capital assets44,268,757$ 48,253,810$ 3,985,053$ Restricted13,570,548 10,453,449 (3,117,099) Unrestricted18,034,821 14,792,521 (3,242,300) Total governmental activities75,874,126 73,499,780 (2,374,346) Business-type activities Net investment in capital assets20,496,832 42,117,264 21,620,432 Unrestricted6,463,638 9,121,952 2,658,314 Total business-type activities26,960,470 51,239,216 24,278,746 Total net position 102,834,596$ 124,738,996$ 21,904,400$ December 31, The City’s total net position at December 31, 2014 was $21,904,400 higher than the prior year. The overall financial results are reflective of the significant increase in net position in the Fiber Optics Project, which was due to the special item reported in 2014 as previously discussed. -20- STATEMENT OF ACTIVITIES The Statement of Activities tracks the City’s yearly revenues and expenses, as well as any other transactions that increase or reduce total net positions. These amounts represent the full cost of providing services. The Statement of Activities provides a more comprehensive measure than just the amount of cash that changed hands, as reflected in the fund-based financial statements. This statement includes the cost of supplies used, depreciation of long-lived capital assets, and other accrual-based expenses. The following table presents the change in the net position of the City for the years ended December 31, 2013 and 2014: 20132014 Net (expense) revenue Governmental activities General government (1,476,483)$ (1,308,098)$ Public safety (1,535,078) (1,531,029) Public works (3,432,146) (3,335,479) Sanitation (470,615) (469,571) Transit – (10,000) Recreation and culture (1,568,111) (1,180,833) Economic development (1,005,813) (1,084,620) Interest on long-term debt (235,265) (649,854) Business-type activities Water 204,970 113,635 Sewer (485,169) (273,360) Liquor 628,717 596,393 Fiber optic (3,634,151) (1,157,192) Deputy registrar 162,754 197,562 (12,846,390) (10,092,446) General revenues Taxes 8,927,164 9,219,737 Franchise taxes 320,640 357,409 General aids and grants 65,228 27,502 Investment earnings (306,303) 1,184,104 Other general revenues 555,250 217,643 Gain on sale of assets 3,885 – Special item: gain on extinguishment of debt – 20,990,451 9,565,864 31,996,846 (3,280,526)$ 21,904,400$ Total net (expense) revenue Total general revenues Change in net position Net Change One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the way the City’s governmental and business-type operations are financed. The table clearly illustrates the dependence of the City’s governmental operations on general revenues, such as property taxes and unrestricted grants. It also shows if the City’s business-type activities are generating sufficient program revenues (service charges and program-specific grants) to cover expenses. This is critical given the current downward pressures on the general revenue sources. -21- LEGISLATIVE UPDATES The 2014 legislative session began with a projected budget excess for the remainder of the biennium of $1.09 billion, later revised upward to a projected excess of $1.23 billion in the February 2014 economic forecast. The Legislature utilized a portion of the projected excess to bolster the state’s financial condition; repaying $246 million “borrowed” from K–12 education through previous financing shifts, and using $150 million to replenish the state “Rainy Day Fund” budget reserve. The Legislature also approved increases to future funding for local government aid, and expanded the sales tax exemption approved for cities in 2013 to include joint powers entities and other instrumentalities of local government. The following is a summary of recent legislation affecting Minnesota cities in 2014 and into the future: Local Government Aid (LGA) – The Legislature completely overhauled the LGA formula for fiscal year 2014 and thereafter, creating a three-tiered formula that includes separate “need factor” calculations for cities with populations under 2,500, between 2,500 and 10,000, or over 10,000. The new formula simplified the LGA calculation, and reduced the volatility of the LGA distribution by limiting the amount it may decline in a given year. Under the new formula, the minimum LGA 2014 distribution for each city was an amount equal to their 2013 LGA. Beginning in 2015, any reduction to a city’s calculated LGA distribution will be limited to the lesser of $10 per capita, or 5 percent of their previous year net tax levy. For cities that gain under the new formula, the increases will be distributed proportionate to their unmet need, as determined by the new “need factor” calculations. The state-wide LGA appropriation was $507.6 million for fiscal 2014, $516.9 million for 2015, and $519.4 million for fiscal 2016 and thereafter. Sales Tax Exemption – Cities are exempted from paying sales tax on qualifying purchases, effective for purchases made on or after January 1, 2014. Purchases of goods or services by an exempt local government for a publically provided liquor store, gas or electric utility, golf course, marina, campground, café, laundromat, solid waste hauling or recycling operation, or landfill will remain taxable. The definition of “cities” for this statute include both home-rule and statutory cities. The 2014 Legislature extended the definition of tax exempt local government to include all special district; city, county, or township instrumentalities; economic development authorities; housing and redevelopment authorities; and all joint power boards or organizations. However, this expanded exemption list is not effective until January 1, 2016. Proposed Property Tax Levy Certification Date – The deadline for cities to certify their proposed annual tax levies was extended from September 15 to September 30. Agricultural Homestead Market Value Credit – The rate of agricultural homestead market value was increased to a maximum of $490 at a market value of $270,000 and over. Capital Investment Act Requirements – The Legislature approved capital improvement projects totaling about $1.1 billion under two separate capital investment (bonding) acts. Both require that, to the extent practicable, a public entity receiving an appropriation of public money for a project under these acts must assure those facilities are built with American-made steel. Authority to Inspect Public Buildings and State-Licensed Facilities – A formal delegation process was established that must be used by the state Department of Labor and Industry (DLI) when delegating the authority to inspect public buildings and state-licensed facilities to local building officials. The new provisions did not alter the circumstances under which the DLI is required to delegate this authority in most circumstances, only the process to be followed. However, for certain smaller construction projects designated as “reserved projects,” the DLI is now required to delegate inspection authority to any municipality with a designated building official without going through the formal delegation process. -22- Open Meeting Law – A change was made to the Open Meeting Law to clarify that the use of social media by members of a public body does not violate the Open Meeting Law if the use is limited to exchanges open to the public. The new statute specifically excludes email but does not otherwise define the term social media. Deputy Registrar Residency – The statutory requirement that an individual appointed as deputy registrar for a statutory or home-rule charter city be a resident of the county in which the city is located was repealed. Local Campaign Finance – Changes were made to increase the campaign contribution limits for local elections. For candidates in a territory with a population of 100,000 or less, the contribution limits were raised to $600 in an election year and $250 in a non-election year. For candidates in a territory with a population over 100,000, the limits were raised to $1,000 in an election year and $250 in a non-election year. In addition, all campaign finance reports required to be filed with a local government must now be published on the local government’s website, if the local government maintains a website. Data Practices – Several changes were made to address unauthorized access of private data by public employees, requiring local governments to: establish security measures to help ensure private data is only accessible to public employees whose work assignment reasonably requires access to the data, and that the data is only being accessed by those individuals for the purposes of their work assignment; follow the data breach reporting requirements that were previously only applicable to state agencies; and perform annual security assessments of personal information maintained by the entity. The statute also states that accessing private data without authorization is a misdemeanor, and willful violation by a public employee constitutes just cause for suspension without pay or dismissal. Part-Time Peace Officers – A change in the statutes now prohibits law enforcement agencies from hiring new part-time peace officers, existing part-time peace officers from transferring to new agencies, and the Peace Officer Standards and Training Board from licensing new part-time peace officers. Part-time peace officers that are currently employed may continue to serve indefinitely with their current employer, but must turn in their license upon leaving their current place of employment or otherwise becoming unemployed. Responsible Contractor Requirement – Contractors who bid on public contracts in excess of $50,000 are now required to certify that they are a “responsible bidder” in order to be awarded a contract as the lowest responsible bidder or best value alternative. A responsible contractor must be in compliance with various state and federal requirements for income tax, workers’ compensation, unemployment insurance, minimum wage, and safety. City solicitations for bid must include: the definition of “responsible contractor,” which may include criteria in addition to the statutory requirements established by the city, or reference to the statutory definition; a statement that a contractor failing to meet the criteria or verify compliance is ineligible to be awarded or perform work on the contract; a statement that submitting a false verification renders the contractor ineligible and can result in termination of the contract; and a statement requiring the contractor to provide copies of verification forms for all subcontractors upon request. Cities are not obligated to verify any of the information in the contractor verification; and have no liability if reasonably relying on the certification when awarding the contract, or declining to award the contract based on a reasonable determination that a contractor failed to verify compliance. Disaster Assistance Contingency Fund – A new state account was created to provide emergency cash flow for local governments located in counties declared federal disaster areas. The fund may be used to meet non-federal fund matching requirements to speed the availability of federal funds. -23- Pensions – A number of changes to the Public Employees Retirement Association (PERA) General Plan were adopted, including:  The minimum salary threshold for inclusion into the PERA General Plan was changed from $425 in any one month to $5,100 on any year for non-school employees or $3,800 in any year for school employees.  Employers are required to provide written notice to any employee excluded from membership in the PERA General Plan within two weeks of the determination on a form prescribed by the PERA executive director.  PERA contribution rates for both employees and employers were increased by 0.25 percent of salary effective January 1, 2015. -24- ACCOUNTING AND AUDITING UPDATES GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) STATEMENT NO. 68 – ACCOUNTING AND FINANCIAL REPORTING FOR PENSIONS—AN AMENDMENT OF GASB STATEMENT NOS. 27 AND 50 The primary objective of this statement is to improve accounting and financial reporting by state and local governments for pensions. This statement replaces the requirements of GASB Statement Nos. 27 and No. 50, as they relate to pensions that are provided through pension plans administered as trusts or equivalent arrangements that meet certain criteria. The requirements of GASB Statement Nos. 27 and No. 50 remain applicable for pensions that are not covered by the scope of this statement. This statement establishes standards for measuring and recognizing liabilities, deferred outflows of resources, deferred inflows of resources, and expenses/expenditures. In addition, this statement details the recognition and disclosure requirements for employers with liabilities (payables) to a defined benefit pension plan and for employers whose employees are provided with defined contribution pensions. This statement also addresses circumstances in which a non-employer entity has a legal requirement to make contributions directly to a pension plan. This statement is effective for financial statements for fiscal years beginning after June 15, 2014. Earlier application is encouraged. Included in this statement are major changes in how employers that participate in cost-sharing pension plans, such as the Teachers’ Retirement Association (TRA) and PERA, account for pension benefit expenses and liabilities. In financial statements prepared using the economic resources measurement focus and accrual basis of accounting (government-wide and proprietary funds), a cost-sharing employer that does not have a special funding situation is required to recognize a liability for its proportionate share of the net pension liability of all employers with benefits provided through the pension plan. A cost-sharing employer is required to recognize pension expense and report deferred outflows of resources and deferred inflows of resources related to pensions for its proportionate share of collective pension expense and collective deferred outflows of resources and deferred inflows of resources related to pensions. In addition, the effects of (1) a change in the employer’s proportion of the collective net pension liability and (2) differences during the measurement period between the employer’s contributions and its proportionate share of the total of contributions from employers included in the collective net pension liability are required to be determined. These effects are required to be recognized in the employer’s pension expense in a systematic and rational manner over a closed period equal to the average of the expected remaining service lives of all active and inactive employees that are provided with pensions through the pension plan. GASB STATEMENT NO. 72 – FAIR VALUE MEASURE AND APPLICATION GASB Statement No. 72 addresses accounting and financial reporting issues related to fair value measurements. The requirements of this statement are intended to enhance comparability among government financial statements by requiring certain assets and liabilities be reported at fair value, using a consistent definition of fair value and accepted valuation techniques. The requirements of this statement are effective for financial statements for periods beginning after June 15, 2015, with earlier application encouraged. GASB Statement No. 72 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are generally assumed to take place in the government’s principal or most advantageous market, taking into account the highest and best use for a nonfinancial asset, and assuming market participants would act in their economic best interest. The statement requires a government to use measurement techniques that are appropriate under the circumstances and for which sufficient data are available to measure fair value; consistent with a market, (replacement) cost, or income approach. It also establishes a hierarchy of inputs to be used in valuation techniques. -25- The statement establishes or clarifies the applicability of fair value measurement for certain assets and liabilities. Fair value is generally required for investments, defined as securities or other assets held primarily for the purpose of generating income, or which have a present service capacity based solely on their ability to generate cash. The statement requires measurement at acquisition value for donated capital assets, donated works of art, historical treasures, and capital assets received through a service concession arrangement. The statement also outlines the required financial statement disclosures about fair value measurements, valuation techniques, and the hierarchy of inputs used for valuation. CHANGES TO REQUIREMENTS FOR FEDERAL GRANTS In December 2013, the OMB issued Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Audits, which supersedes all or parts of eight OMB circulars; consolidating federal cost principles, administrative principles, and audit requirements in one document. The “Super Circular” includes a number of significant changes to the federal Single Audit process, including: an increase in dollar threshold for requiring a Single Audit from $500,000 to $750,000; changes to the thresholds and process used for determining major programs; reductions in the percentages of expenditures required to be covered by a Single Audit from 50 percent to 40 percent for high-risk auditees and from 25 percent to 20 percent for low-risk auditees; revised criteria for determining low-risk auditees; and an increase in the threshold for reporting questioned costs from $10,000 to $25,000. Auditees are required to implement the administrative requirements of the new “Super Circular” by December 26, 2014. The revised audit requirements will be effective for fiscal year 2015 city audits, with an optional one-year grace period for implementing the new procurement standards included in this guidance. -26- COSO INTERNAL CONTROL FRAMEWORK The clarified auditing standards applicable to governmental audits incorporate a definition of internal control that is based on the internal control integrated framework developed and issued in 1992 by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In May 2013, COSO issued an updated framework which supersedes the original after December 15, 2014. The new COSO framework retains the basic definition of internal control and its five components established in its original framework, along with the fundamental requirements to consider these five components and to use judgment when assessing and evaluating the effectiveness of a system of internal controls. The new COSO framework enhances and clarifies a number of concepts from the original framework to make it easier to use and apply. One of the more significant enhancements was the establishment of 17 principles, associated with the 5 components of internal control, intended to assist users in understanding the requirements of effective internal control and designing effective systems of internal control. The 5 components of internal control and 17 underlying principles are as follows: Control Environment – 1. Organization demonstrates a commitment to integrity and ethical values. 2. Governing body is independent from management and exercises oversight control. 3. Management establishes structure, reporting lines, authority, and responsibilities. 4. Organization demonstrates a commitment to the competence of individuals involved with internal control. 5. Organization holds individuals accountable for internal control responsibilities. Risk Assessment – 6. Organization specifies clear objectives for the identification and assessment of risks. 7. Organization identifies and analyzes risk. 8. Organization assesses the potential for fraud risks. 9. Organization identifies and assesses significant changes that could impact internal control. Control Activities – 10. Organization selects and develops control activities to mitigate risks. 11. Organization selects and develops general IT controls. 12. Organization establishes and implements control policies and procedures. Information and Communication – 13. Organization uses relevant, quality information to support internal control. 14. Organization communicates internal control information internally. 15. Organization communicates internal control information externally. Monitoring – 16. Organization conducts ongoing and/or separate internal control evaluations. 17. Organization evaluates and communicates deficiencies to responsible parties for corrective action. COSO defines an effective system of internal control as one that reduces to an acceptable level the risk of failing to achieve an organizational objective in the areas of operations, compliance, or reporting. According to the new framework, an organization can achieve effective internal control by applying all of the principles listed above. To achieve this, each of these five components and the relevant principles must be present and functioning, and the five components must operate in an integrated manner. Local governments should be reviewing their internal control systems to assure these principles have been incorporated and implemented. CityCouncilAgenda:07/13/15 1 4B.ConsiderationofapprovingCitygrantmatchforaPhaseIXacquisitionatthe BertramChainofLakesRegionalPark/YMCACampManitou(AS) A.REFERENCEANDBACKGROUND: TheCityCouncilisaskedtoconsiderauthorizingtheuseofCityfundsforaPhaseIX propertyacquisitionattheBertramChainofLakesRegionalPark. ThePhaseIXacquisitionfundingrequestismadeinordertoutilize $1millioningrant fundsawardedthroughFY2015ParksandTrailsLegacygrantprogram.TheLegacy grantwassubmittedatan80%State/20%Localmatchgrant.The$1millionLegacy awardwasthesinglelargestParkandTrailgrantawardedthroughtheprogramfor theFY2015grantcycle. Thegrantreceivedwaswrittenbasedonthepurchaseoftheremainderof“Parcel4”. Thepropertytotals50landacresandliesnorthofLongLakealongCountryRoad39. Withcompletionofthisacquisition,totalacreageoftheparkwillreachapproximately 800landacres. Theappraisedvaluationusedforthegrantsubmittalwasbasedonthe2011Shenohan AppraisalServicesappraisalofthefullparkarea.Theappraisal,authorizedbytheCity CouncilandWrightCountyBoardofCommissioners,lookedatthevaluationofthe entireparkbasedonchangesinthelandvaluemarket,aswellasthevaluationsofeach remainingindividualparceltobepurchased.Basedonthatappraisal,the50acreportion ofParcel4 isestimatedtobeworth$1,400,180.Anewappraisalofthisparcelis requiredbythegrantfundingtoconfirmvaluations. TheCity’sshareofthematchfortheproposedacquisitionsis$208,000,which includes$200,090inmatchfundingandapproximately$8,000forappraisaland closingdocuments.TheWrightCountyBoardofCommissionershavevoted unanimouslytoapprovetheCounty’sshareofthematchingfunding. TheCityhascompletedsixpriorpropertyacquisitionsatBertram.Theattachedmap detailsthoseacquisitions.TheCityandCountyhavealsosuccessfullyappliedforand receivedgrantfundingfortwootheracquisitions,PhasesVIIandVIII,inadditiontothis currentrequest.Tofollowisinformationonthestatusofthoseacquisitions. •PhaseVII(PortionofParcel4)–TheCountyandCityhavebothapprovedmatch fundingintheamountof $436,610 each,plusappraisalandclosingcosts,in 2014.Thesefundsmatch$1.4millioninpreviouslyawardedPark&TrailLegacy grantfunds.Anappraisalforthisacquisitionisinprogress.Theacquisitionof 83.75acresofParcel4isexpectedtooccurinthefallof2015,afterpurchase agreementandmemorandumdocumentsarebroughtforwardtotheCouncilfor consideration.ThefundingforthispurchaseiscurrentlyavailableinthePark& PathwayFund. CityCouncilAgenda:07/13/15 2 •PhaseVIII(MajorityofParcel1)-TheCountyandCityhavebothapproved matchfundingof$82,750each,plusappraisalandclosingcostsforthis acquisition.ThisfundingmatchesaDNROutdoorRecreationgrantawardof $100,000andincludesappraisalandclosingcosts.Thematchfacilitatesthe acquisitionof9.63landacresofpropertyplannedfortheCityathleticcomplexat Bertram.Anappraisalandreviewappraisalforthisacquisitionisinprogress. AcquisitionofPhaseVIIIisexpectedtooccurinconjunctionwithPhaseVIIinthe fallof2015,afterpurchaseagreementandmemorandumdocumentsarebrought forwardtotheCouncilforconsideration.Thefundingforthispurchaseis currentlyavailableinthePark&PathwayFund. Currently,allpropertyacquiredunderthefirstsixphasesofacquisitionisjointlyowned andoperatedbytheCityandCountyandisfullyaccessibletothepublic. Aspropertyacquisitioncontinuestomoveforward,improvementshavebeenmadetothe parktoallowforpublicuseandenjoymentofthelandownedbyWrightCountyandthe CityofMonticello.To-date,theWrightCountyandCityParkstaffhavecompletedthe followingimprovementsforpublicuse: •OpeningoftheBertramBeachinJune,2015 •SupportandcoordinationwithMonticelloRotaryforconstructionofthenew playgroundatBertramBeach •ConstructionofanaccessroadfromBriarwoodAvenueandnewnorthparking area •Milesofclearedhikingpaths;pathsgroomedforcross-countyskiinginwinter(see attachedmap) •Installationandrefurbishmentoftwofishingpiers(oneonBertramandoneon Long) •PartnershipwiththeMinnesotaOff-RoadCyclists(MORC)fordevelopmentofa 10milesingle-trackmountainbikingcourse;inprogress •OpeningoftheBertramboatlaunch •Improvementofapublic-usegravel-surfaceparkinglotandentranceroadoff90th St. •RepairstobridgealongeastLongLaketrailway •Parkboundarysignage •Improvementstopicnicareaatparkentrance Ausermapforparkamenitiesisalsoattachedassupportingdata. Aswithpreviousacquisitions,anamendedMemorandumofUnderstandingwillalsobe completedaspartofthePhaseIXacquisitionprocess.Oncedrafted,itwillbepresented toCouncilforreviewandapprovalwiththePurchaseAgreement.Additionally,any applicableUseAgreementswillalsobepresentedforCouncilreviewandapproval. A1.BudgetImpact:Thefundingforthispurchase,$208,000,isproposedtocome fromtheClosedBondFundcomponentoftheCapitalProjectsFund.Thecurrent CityCouncilAgenda:07/13/15 3 CapitalProjectsFundbalanceisapproximately$952,000.Theacquisitionand budgetimpactwilloccurin2016. A2.StaffWorkloadImpact:IftheCityCouncilauthorizesthematchand acquisition,CitystaffandtheCityAttorneywillworkwithWrightCountyto draftingthenecessarypurchaseagreementdocumentationinpreparationfor closing.ThisactionwillcommenceuponcompletionofPhaseVIIandVIII acquisitions. B.ALTERNATIVEACTIONS: 1.Motiontoapprove FY2015ParksandTrailsLegacy grantmatchfundinginthe amountof$208,000fromtheCapitalProjectsFundforaPhaseIXacquisitionat BertramChainofLakesRegionalPark,includingappraisalandclosingcosts,in conjunctionwithamatchfromWrightCounty,andtodirectstafftoprepare appropriateclosingandpurchasedocumentation. 2.Motiontodenygrantmatchfundingfora PhaseIXParksandTrailsLegacy grantatthistime. C.STAFFRECOMMENDATION: TheauthorizationtofundthePhaseXIgrantmatchfortheBertramChainofLakes RegionalParkisconsistentwithpreviousCouncilactions,theMonticelloComprehensive Plan,andwiththeprovisionsoftheapprovedMemorandumofUnderstandingbetween theCity,CountyandtheYMCA.Assuch,staffsupportfundingthematchforthis acquisition. D.SUPPORTINGDATA: A.BertramChainofLakesParcelAcquisitionProgressMap B.2008BertramChainofLakesParcelMap(Parcel#Reference) C.BertramChainofLakeRegionalParkMap D.BertramChainofLakesFundingTable Current Park Boundary Pending Currently Unacquired Phase VII & VIII Pending 2015 (89 Acres) Current Park Boundary 5A 5 3 6 7 4 9 8 1 2 12 10 11 Wright County Parks Created by: Wright County GIS, Office of the County Surveyor January, 2009 08001,600400 Feet Bertram Chain of Lakes Map 2 Project Area 2 Parcel #Land AcresWater AcresTotal Acres 140.17040.17 239.89039.89 5A104.3339.7144.03 6174.640174.64 7121.0948.23169.32 834.27.9542.15 99.5746.2755.84 109.8132.3742.18 110.3400.34 1241.870.3342.2 Bertram Lake Long Lake Beaver Pond 90T H S T N E .15 mi . 0 9 m i .1 0 m i .14 mi .1 7 m i .4 2 m i .10 mi .50 m i .2 6 m i .71 m i . 1 7 m i .1 7 m i .51 m i .5 3 m i Oak Savanna Restoration Site Park Entrance "Kame" (Geological Feature) "Esker"(Geological Feature) 90TH ST NE AV E N E CA H I L L City of Montic e l l o (2) (2) (2 ) (4) (3) (3) (3) (3) (1) (1) (1) (1 ) (4 ) Bertram Chain of Lakes Regional Park Bridge Carry-In Access Picnic Area Trail Head Access Dam Fishing Pier Parking Park Boundary Lakes & Water Features (Trails = 1.16 miles) Trail #3 (Hike, Snowshoe) LaVallee Esker Trail #1 (Hike, X-Country Ski) (Trails = 1.36 miles) (Trails = .27 miles) Trail #4 (Hike, Snowshoe) (Trails = 1.14 miles) Trail #2 (Hike, Snowshoe) Park Road Township RoadPrivate Property September 11, 2014 0250500 Feet Become a friend of Bertram Chain of Lakes Regional Park. ŚƚƉ͗ͬͬĨƌŝĞŶĚƐŽŽĞƌƚƌĂŵůĂŬĞƐ͘ŽƌŐͬ Wright County Parks Total Trails = 4.02 miles(1) Trail Number K a m e Trail Phase Land Acres Year Funded Grant $Non-Local Funding Source County $City $Total Status/Result Documents/Approval Requests City Approval Date County Approval Date Concept 10/27/2008 11/3/2008 1 2008 $1,000,000 LCCMR/Environment and Natural Resources Trust Fund $1,000,000 $1,000,000 $3,000,000 Phase 1 Completed December, 2008 MOU 11/10/2008 11/17/2008 1 2008 $200,000 DNR-Metro Greenways/Environment and Natural Resources Trust Fund $200,000 $200,000 $600,000 Phase 1 Completed December, 2008 MOU (First Addendum)12/8/2008 12/16/2088 1 319 Total 2008 $1,200,000 Parcel 5A, 11 and 6 $1,200,000 $1,200,000 $3,600,000 LCCMR Appropriation Approval NA 11/18/2008 Metro Greenways Approved NA 9/16/2008 Purchase Agreement 12/8/2008 12/16/2008 Athletic Field Agreement 12/8/2008 12/16/2008 Match 3/22/2010 4/16/2010 2 40.66 2010 $549,628 DNR-Metro Greenways/Environment and Natural Resources Trust Fund $274,814 $274,814 $1,099,256 Phase II Completed June 2010 MOU (2nd Addendum)5/10/2010 6/8/2010 Parcel 5B Purchase Agreement 5/10/2010 6/8/2010 Match 6/27/2011 7/12/2011 3 81.09 Aug-08 $266,249 DNR-Non-Metro Regional Parks/LAWCON (Federal)$148,101 $148,101 $562,451 Phase 3, Completed December 2011 Legacy Application 9/28/2009 3 Jan-10 $400,000 DNR-Legacy Park/Amendment (Legacy Amendment Funds) (PL09-001)$222,500 $222,500 $845,000 Phase 3, Completed December 2011 MOU (3rd Addendum)11/28/2011 12/7/2011 3 Sep-10 $334,725 DNR-Non-Metro Regional Parks/LAWCON (Federal)$167,363 $167,363 $669,451 Phase 3, Completed December 2011 Purchase Agreement 11/28/2011 11/29/2011 3 Sep-10 $76,000 DNR-Legacy Park/Amendment (Legacy Amendment Funds) (PL10-001)$61,299 $61,299 $198,598 Phase 3, Completed December 2011 Shared Use Agreement 11/28/2011 12/7/2011 Total 2011 $1,076,974 Parcel 7 A $599,263 $599,263 $2,275,500 Grant Apps 1/24/2011 4 61.25 2011-2012 $833,333 $500 k Legacy Park, $333,333 Non-Metro Regional Park $204,002.00 $204,002.00 $1,241,337.00 Phase 4, Completed December 2014 Match 2/13/2012 1/10/2012 $833,333 This includes parcel 12,10, 9 $204,002.00 $204,002.00 $1,241,337.00 MOU (4th Addendum)11/12/2013 11/12/2013 Purchase Agreement 1/14/2013 12/11/2012 Shared Use Agreement 1/14/2013 12/11/2012 Exhibits-Operating/Ground Lease 11/12/2013 11/12/2013 Exhibits - Amdt to Operating 12/9/2013 12/17/2013 2013 (Phase 5) Proposed Funding Grants and Local Matches 5 40.17 2012-2013 $369,713 Outdoor Recreation Grant $317,268.50 $317,268.50 $1,004,250.00 Grant Awarded & Encumbered, Local Share Secured, Completed June of 2014 Grant Apps 3/12/2012 $369,713 This includes parcel 1 $317,268.50 $317,268.50 $1,004,250.00 Match 8/13/2012 11/20/2012 MOU (5th Addendum)5/12/2014 5/13/2014 Purchase Agreement 5/12/2014 5/13/2014 Shared Use Agreement 5/12/2014 5/13/2014 First Addendum to OA 5/12/2014 5/13/2014 Operating Agreement 5/12/2014 5/13/2014 Ground Lease 2013 (Phase 6) 6 100.32 2013 -2014 $1,528,925 Park Legacy Grant Submitted 9-21-12 - Parcel 7 and 5 $328,288 $328,288 $2,185,500 Grant Awarded, Local Share Secured, Completed June of 2014 Grant Apps 6 23.61 2013 -2014 $333,333 Regional Park Grant Submitted 9-2-12 - Parcel 8 $144,084 $144,084 $621,501 Grant Awarded, Local Share Secured Match 6/24/2013 5/28/2013 total 123.93 $1,862,258 $472,372 $472,372 $2,807,001 MOU (5th Addendum)5/12/2014 5/13/2014 Purchase Agreement 5/12/2014 5/13/2014 Shared Use Agreement 5/12/2014 5/13/2014 First Addendum to OA 5/12/2014 5/13/2014 Operating Agreement 5/12/2014 5/13/2014 Ground Lease 5/12/2014 5/13/2014 2013 (Phase 7) 7 82.75 $1,400,000 Park Legacy Grant Submitted for portion of parcel 4 $436,410 $436,410 $2,272,820 Grant awarded, local match secured Match 7/28/2014 3/18/2014 total $1,400,000 $2,272,820 MOU (6th Addendum) Purchase Agreement 2013 (Phase 8)Grant Apps 2/24/2014 8 10.62 2014 $100,000 Outdoor Recreation Grant Submitted for this parcel, balance of 1 $82,750 $82,750 $265,500 Grant awarded, local match secured Match 7/28/2014 12/17/2014 total $100,000 $82,750 $82,750 $265,500 MOU (6th Addendum) Purchase Agreement 2016 (Phase 9) Match 9 50 2016 $1,000,000 Remiaing of Parcel 4 (CR39 Frontage)$200,090 $200,090 $1,400,180 Grant awarded MOU (7th Adedndum) TO DATE 809.47 $8,391,906 $3,786,969 $3,786,969 $15,965,844 TBD Proposed Funding BALANCE OF PARK 10 203.3 2015 Parcel 3 $3,543,578 11 39.89 2015 Parcel 2 (remaining)$990,578 1052.66 $20,500,000 Proposed Funding & Local matches Proposed Funding & Local Matches Proposed Funding & Local Matches Proposed Funding & Local Matches Bertram Chain of Lakes Regional Park - Acquisition Project Funding History and Needs Phase I Funding (2008) Phase 2 Funding (2010) Phase 3 Funding (June 2011) Phase 4 Funding (December, 2013) CityCouncilAgenda:07/13/15 1 4C.ConsiderationofapprovingacontractwithWSB&AssociatesfortheBertram ChainofLakesAthleticParkPlanningProjecttoincludeamastersiteplan, phasingplan,feasibilityreport,schematicgradingplan,andconstructiondesign, plansandcoordinationforinterimimprovements (AS) A.REFERENCEANDBACKGROUND: TheCityCouncilisaskedtoreviewandapprovethepreparedcontractforserviceswith WSB&AssociatesfortheBertramChainofLakesplanningproject.TheCouncil authorizedpreparationofthecontractonJune22nd,2015. Thecontractfortheplanningprojectincludesdevelopmentofamastersiteplan,phasing planandfeasibilitystudyfortheBertramChainofLakesRegionalAthleticPark,aswell aspreparationofanAthleticParkschematicgradingplanandconstructiondesign,plans &coordinationforinterimimprovementsattheAthleticPark.Thecontractdetails completionofthetasksasrequiredbytheRequestforQualificationsandProposals documentasfollows. o Task1:Needsanalysisandplanconfirmation WSBhasproposedthedevelopmentofthreealternativeconceptplansfor theathleticcomplex.AlthoughnotrequiredundertheRFQ/RFP,the developmentofthreeconceptalternativesallowsforcomparative evaluationoflayoutscenarios.Theseconceptswillbepreparedtoallow theCityanditsstakeholderstoevaluatedifferentspatialarrangementsfor theparkcomponents,includingtherelationshipandtransitionbetweenthe activeandpassiveareasofthepark.Thecostforthisitemincludes coordinationandmanagementofoneadditionalpublicmeetingforreview andcommentrelatedtothethreelayoutsandisincludedinthenot-to- exceedcontractamount. o Task2: MasterSitePlan:basedonneedsanalysisandgoals DetailedPhasingPlans:tieredandphasedbasedonacquisition,detailed siteplans,utility,landscaping,signage FeasibilityPlan&Report:Environmental,traffic,ADA,costestimates fordevelopmentandoperationsandmaintenance o Task3:SchematicGradingPlan WrightCountyLandAlterationPermit o Task4:ConstructionDesign,Plans&CoordinationforInterimImprovements Grantrequirements Thecontractalsoprovidesaclearlistingofthedeliverablesforeachtaskconsistentwith requirementsoftheRFQ/RFP. AsCouncilisaware,theCity’sFY2016applicationtotheOutdoorRecreationGrantfund wasnotsuccessful,andassuch,theprojectwillcontinuetoincludeaplanforthePhase IIinterimimprovementsasoriginallyenvisionedwithinTask2,butwillnotinclude CityCouncilAgenda:07/13/15 2 constructiondesignandcoordinationforthePhaseIIinterimimprovementsatthistime. WSBhasbeeninformedofthisadjustment.Thereisnocontract-relatedimpactforthis adjustment. Again,asnotedinboththeRFQ/RFPdocumentsandtheJune22ndCouncilagendaitem, thiscontractdoesnotprovidedforconstruction-leveldocumentsforparkimprovements beyondtheinterimimprovementsdescribedintheOutdoorRecreationacquisitiongrants forParcel1(PhaseI).However,theconstructioncostestimatecomponentoftheproject willincludeboththeestimatedcostsforconstructionoftheimprovementsaswellascost estimatesforthepreparationofconstructiondocumentsforthosefutureimprovements (suchasconcessionandrestroombuildings,additionalaccessroad,parkinglots,trails, stormwaterfacilitiesandfields). A1.BudgetImpact:Thecontracthasbeenpreparedasanot-to-exceedcontractata feeof$87,358,whichincludestheaddedpublicmeetingforcommentonthe alternativeconceptplans.Forreference,theestimatedcostprovidedinthe proposaldocumentwas$85,358.Fundingforthisplanningprojectwillcome fromtheCapitalProjectsfund,withfundstransferredintotheParks&Trailsfund forprojectpayment.Fundingforthisprojectwasdetailedaspartofthe2015 budgetingprocess. Thecontractdoesnotincludemileagefornon-WSBconsultants,whichwillbe limitedandcanbecoveredwithinParksorPlanningbudgetsforMisc. ProfessionalServices.WSBstaffwillnotchargeformileageforthisproject,asit willbeincludedwithinthenot-to-exceedamount.ThecostoftheLandUse permitapplicationrequiredbyWrightCountyis$350andisnotincludedinthe contract.ThisamountwillbeabudgetitemforParksorPlanningandZoning Departmentin2016.Otheragencypermitfeeswhichmayberequiredare unknownatthistimeandarenotincludedinthecontractamount. A2.StaffWorkloadImpact:Staff,includingtheCommunityDevelopmentDirector, ParksSuperintendent,CityEngineerandMCCDirectorwillbeinvolvedin supportingtheMasterPlanningprocesses. B.ALTERNATIVEACTIONS: 1.MotiontoapprovethecontractproposaldatedJune24,2015withWSB& Associatesinanamountnottoexceed$87,358.00fortheBertramChainofLakes AthleticParkPlanningProjecttoincludeamastersiteplan,phasingplan, feasibilityreport,schematicgradingplan,andconstructiondesign,plansand coordinationforinterimimprovements. 2.Motionofother. CityCouncilAgenda:07/13/15 3 C.STAFFRECOMMENDATION: StaffrecommendsapprovalofthecontractwithWSB&Associates.Thecontractscope ofworkisconsistentwiththescopeofworkdetailedintheCity’sRequestfor QualificationsandProposaldocument,withtheadditionofthepreparationandreviewof thealternativeconceptplansinTask1asnoted. D.SUPPORTINGDATA: A.ProposedContractLetterfromWSBandAssociates B.BertramChainofLakesAthleticComplexRequestforQualifications&Proposal engineering planning environmental construction 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763-541-4800 Fax: 763-541-1700  Equal Opportunity Employer wsbeng.com June 24, 2015 Ms. Angela Schumann Community Development Director City of Monticello 505 Walnut Street Monticello, MN 55362 Re: Professional Services Proposal for Bertram Chain of Lakes Athletic Complex Master Planning and Interim Use Design Dear Ms. Schumann: WSB is pleased to present the following scope of services and fee for professional services related to the Bertram Chain of Lakes Athletic Complex project. We have included the following sub-consultants on our team to provide peer level review and comment related to the master plan and estimation. Professional Turf & Renovation (topsoil and seed) MLC Irrigation The following details the associated tasks to be performed as part of WSB’s professional services for this project. A. Scope of Services Task 1: Needs Analysis / Plan Confirmation WSB will reconfirm conceptual athletic park plan elements and park configuration based on an updated needs assessment. WSB will review existing concept plan and background documents including Outdoor Recreation Grant documents, Park & Pathway Plan, Natural Resource Inventory, archeological survey, City of Monticello and regional park system, and other previously developed BCOL park documents. WSB will meet with stakeholders, including staff, Bertram Chain of Lakes Advisory Council, BCOL Athletic Sub-Committee, Monticello School District, and Monticello Parks Commission to determine current and future needs and capacities. WSB will prepare up to 3 alternative concepts based on programmatic elements desired to explore different spatial arrangements and the resulting balance between natural/active areas. Deliverables Needs assessment report including: o Methodology of assessment DRAFT FOR REVIEW Ms. Angela Schumann City of Monticello, MN June 24, 2015 Page 2 o Record and summary of stakeholder interviews and meetings o Overview of current needs and availability – school district, City of Monticello, region  Current / historical data to be provided by city, school district, and associations o Projection of future need – school district, City of Monticello, region (based on local participation data and regional trends) o Specific evaluation of local versus regional needs o Statement regarding decommissioning potential of other park facilities o Final recommendation based on above, including description of prioritization of improvements o Provide 3 soil borings to gain representative understanding of underlying soils Meetings and Public Process Kick-Off Meeting — Review prior site concepts with City staff, site conditions and design requirements, and receive and/or request project information from the City. Stakeholder Meetings and Interviews - o City and County Park and Community Center Staff o BCOL Athletic Field Subcommittee o Monticello School District Staff o Athletic Organizations (as needed) o Monticello Community Education Staff o Bertram Chain of Lakes Advisory Council o Monticello Parks Commission Final Recommendation Staff Meeting – Review final recommendations with City staff Task 2: Master Site Plan, Phasing Plan and Feasibility Plan & Report Master Site Plan: WSB will prepare a final master site plan for the site based on Task 1 outcomes. The plan will show the number, location and orientation of all fields, access drives, trails, parking areas, open spaces and buildings. Phasing Plan: WSB will prepare a detailed site plan for each phase of the site as follows. A map of the phases was provided in the RFP by the City of Monticello. Phase 1: 49.8 acres a. Interim improvements per Outdoor Recreation Grant b. Full build out per master site plan Phase 2: 40.89 acres a. Interim improvements per Outdoor Recreation Grant b. Full build out per master site plan Phase 3: 26 acres (full build-out only) The consultant will first develop an interim improvements plan layer based on meeting the requirements of Outdoor Recreation Grants. The City has been awarded Outdoor Recreation grant funds through the Department of Natural Resources, which require the development of outdoor recreation facilities on the Phase 1 area no later than June, 2017. The first phase of improvements includes the placement of a mid-parcel access road with open play fields on the south 20 acres of the 49.8 acres of Phase 1, including a 10’ unpaved trail to the passive recreational area of the park. The second phase of interim Ms. Angela Schumann City of Monticello, MN June 24, 2015 Page 3 improvements is based on a second Outdoor Recreation grant (currently pending award) and was to include the extension of the access road to a gravel parking area and extension of the 10’ unpaved trail to additional open play fields. For detailed full build-out phasing plans, the consultant will determine detailed plans for recreational amenities and supporting facilities for each of the three noted phase acreages based on most immediate needs determined via Task 1. Feasibility Plan & Report: WSB will prepare itemized engineer’s estimates/construction cost estimates for all improvements in each phase, including as a separate component the interim improvement plans. The consultant/consultant team will provide projections of operations and maintenance for each phase, including the interim improvements. The feasibility plan/report will include an environmental analysis, utility plan, traffic analysis, ADA compliance detail, and sustainability analysis and recommendations. The feasibility plan/report will include a statement addressing how each of the goals of the project have been met with the master site plan, phasing plan or the report itself. Deliverables Full site Master Plan o 24” X 36” sheets o A full certificate of survey will be provided. o Site topographic survey will be required. o AutoCAD software and the design base drawing. o File must be suitable for input into both City and Wright County GIS. Interim Phasing Plan o 24” x 36” plan sheet for each of two phases o AutoCAD software and the design base drawing. o File must be suitable for input into both City and Wright County GIS. Detailed Phasing Plans at master planning level to guide phased implementation of the project over time, Full Build-Out (not construction ready plans) o 24” x 36” plan sheet for each phase o Show all plan features, as appropriate:  Site layout for soccer, football, lacrosse, baseball, softball, and other field or court types, as determined necessary  Spectator stands/areas  Field and site lighting  Concessions/restrooms  Storage and maintenance building(s)  Trails  Natural features, including plazas and open space pavilions  Parking lots  Playgrounds  Picnic and seating areas  Site access and utility access roads  Conceptual irrigation layout (existing well; future city services)  Storm water features (ponds, rain garden, swales, etc.) Ms. Angela Schumann City of Monticello, MN June 24, 2015 Page 4 o Landscape plan, including species and recommended count – to be provided at a master plan level to guide development and budget for landscaping (not a construction ready document).  Topsoil and seed o Review site soil o Review preferred plan o Recommendations for seed selection using native topsoil or for modified topsoil related to high performance/high maintenance fields o Signage and interpretive kiosk plan o Utility plan for electric, well, and septic, as well as future municipal utility connection points and corridors  Storm water o Review of soil types and concerns o Review of 3 concept plans and preferred plan – spatial considerations for storm water o Recommendation of opportunities for storm water management and reuse o Guidance with construction cost estimate for full development  Water Service o Review readily available well information and soil/geology for this area o Review of preferred plan o Preliminary recommendation for potential well sites and future utility routing for municipal water and sanitary connections. o Guidance with construction cost estimate for well(s) and future utility routing  Septic o Review readily available soils information o Review of preferred plan o Recommendation for general spatial needs associated with septic system(s) and future utility routing for municipal connections o Guidance with construction cost estimate for septic systems and future utility routing  Irrigation o Review preferred plan o Identify water needs (gallons per minute max) for irrigation system o Assist with alternative considerations of irrigation source that may include  Water reuse  Well(s)  Sourcing from lake via permit if allowed o Plan files must be suitable for input into both City and Wright County GIS. Project Feasibility Plan & Report to include: o Environmental analysis- description of features and impacts, regulatory compliance o Traffic projections  Review public street/road requirements for allowable access point(s)  Review of preferred plan as related to public street/road impact Ms. Angela Schumann City of Monticello, MN June 24, 2015 Page 5  Recommendations for public street/road modifications needed for full development (turn lanes / widening, etc)  Guidance for budgeting of public street/road modifications needed o ADA compliance detail and report o Sustainability analysis and recommendations, including low impact design recommendations and best management practices for design, materials and construction, and on-going maintenance o Engineer’s estimates/construction cost estimates for all improvements by phase  Statement regarding cost efficiency for phased improvement “clusters” o Projections of operations and maintenance for planned improve ments Meetings and Public Process Workshop - Bertram Chain of Lakes Advisory Council, Proposal Steering Committee, Athletic Field Sub-Committee, Parks Commission Public Open House to review alternate concept plans (additional meeting) Public Open House to review master plan Secondary Workshop - Bertram Chain of Lakes Advisory Council, Proposal Steering Committee, Athletic Field Sub-Committee, Parks Commission, City Council, Planning Commission Parks Commission Review and Recommendation Council Review and Adoption Task 3: Schematic Grading Plan for All Phases (for Land Alteration Permit) WSB will prepare a schematic grading plan for all phases of the athletic facility based on the master site plan and phasing plans. The plan must be prepared to meet Wright County Land Alteration Conditional Use Permit requirements. The consultant will submit the plan to permit review and decision authorities and represent the City and park in the review process. Deliverables Complete and evaluate site soil borings. Prepare preliminary plan grading, erosion, sediment control and storm water management sheets using AutoCAD software and the design base drawing. o Plan reviews on 24” X 36” sheets. o City will provide Standard Detail Plates for consultant's use. Prepare for Wright County Land Alteration Conditional Use Permit. Submit application and plans as needed for the required permits. Meetings and Public Process Preliminary Application Meeting – Meet with Wright County Planning & Zoning staff for purpose of understanding requirements and plan detail required for Land Alteration Conditional Use Permit. Preliminary Design Meeting — Review draft plans and specifications. City will review and provide comments in regard to the preparation of final plans and project deliverables. City Council – Present for authorization to submit application to Wright County. Monticello Township Board Meeting. Wright County Planning Commission Meeting. Final Meeting — Review and receive final permit plans and related deliverables. Ms. Angela Schumann City of Monticello, MN June 24, 2015 Page 6 Task 4: Construction Design Plans & Coordination for Interim Improvements WSB will provide final design, bidding services, construction staking, and construction management assistance of the interim improvements described below:  Interim Improvement Phase 1: This will include the placement of a mid-parcel access road with open play fields (turf without irrigation) on the south 20 acres, including a 10’ unpaved trail to the passive recreational area of the park.  Interim Improvements Phase 2: This is pending grant agency award and will include the extension of the access road to a gravel parking area and extension of the 10’ unpaved trail to additional open play fields (turf without irrigation). WSB will provide the following bidding process services:  Advertisement for bids  Coordinating online plan set availability for interested bidders  Answering bidder questions during bidding  Issuing addenda to provide any clarifications during bidding if needed WSB will meet with the City and contractor on a frequency of one time every other week throughout the construction to review the project to ensure the design intent is being carried through. Based on the five month timeline included in the RFP, we anticipate approximately ten site meetings at four hours per meeting (includes travel time). WSB will provide design and estimate for street/road modifications for interim improvements if required. Does not include final design of full build-out. Deliverables: Prepare preliminary plan sheets using AutoCAD software and the design base drawing. Plan reviews on 24” X 36” sheets. o City will provide Standard Detail Plates for consultant's use. Prepare pre-development and post-development site hydrology calculations using HydroCAD software. Project design should mimic natural hydrologic site conditions to the maximum extent practical. Incorporate Low Impact Development (LID) Best Management Practices (BMP's) such as grass-lined swales, infiltration and rain gardens. Note: Storm water design shall meet the standards of the City of Monticello and Wright County. Design temporary/permanent erosion protection and sediment control BMP's in construction plans and prepare SWPPP (Storm Water Pollution Prevention Plan) documentation for project as required by the Minnesota Pollution Control Agency (MPCA) to obtain an NPDES Phase 11 Construction Activity Permit. Prepare for City and Wright County storm water permit applications, as applicable. Prepare final construction plans, bid documents and specifications based on comments from City and Wright County. Manage bid process. Preconstruction Meeting — Construction meeting with contractor, utility companies, etc. to review construction plans. Construction staking of improvements. Consult with City on as-needed basis during construction (provide hourly rate and an estimate of hours required). Meetings and Public Process: Bid Opening/Tabulation and Board Recommendation Ms. Angela Schumann City of Monticello, MN June 24, 2015 Page 7 Pre-Construction Meeting On-site construction observation B. Total Cost and Schedule Fees for the services defined in this proposal will be billed on an hourly not -to-exceed basis. The total not-to-exceed fee is $87,358.00. Per our discussion, we have adjusted the scope and related fee to include 1 additional public open house meeting and feedback summary to review the alternate preliminary concepts with the public. Additional services requested by the City beyond what is defined in this proposal will be billed as ‘additional services’ on an hourly basis. Additional services will only proceed with authorization from the owner. If you wish to authorize the work defined in this proposal, please sign below and return one copy to me for our records. Sincerely, WSB & Associates, Inc. Jason L. Amberg, RLA Group Manager - Landscape Architecture ACCEPTED BY: City of Monticello, MN By Signature Printed name Date 2 | Page TABLE OF CONTENTS A. PURPOSE STATEMENT P. 3 B. PROJECT VISION P. 3 C. PROJECT BACKGROUND P. 5- 7 D. PROJECT GOALS P. 8-9 E. SCOPE OF WORK: TASK SPECIFICS & DELIVERABLES P. 10-17 F. PROJECT PROCESS PARTICIPANTS P. 18 G. SUBMITTAL REQUIREMENTS P. 19 H. PROPOSED EVALUATION CRITERIA P. 19-20 I: PROJECTED PROJECT TIMELINE P. 20 J: AVAILABLE RESOURCES P. 21 APPENDIX – EXHIBITS Exhibit A: Bertram Chain of Lakes Athletic Park Proposal & Project Dates Exhibit B: Bertram Chain of Lakes Athletic Park Proposal & Project Timeline Exhibit C: Bertram Chain of Lakes Athletic Park Parcel and Phasing Information Exhibit D: Concept Plan, Bertram Chain of Lakes Athletic Park Exhibit E: Current Concept Plan, Bertram Chain of Lakes Regional Park 3 | Page A. PURPOSE STATEMENT The City of Monticello is requesting firm qualifications and proposals for the development of a master site plan, phasing plan and feasibility study for the Bertram Chain of Lakes Regional Athletic Park, as well as preparation of an Athletic Park schematic grading plan, and construction design, plans & coordination for interim improvements at the Athletic Park. B. PROJECT VISION The Bertram Chain of Lakes Regional Park is a 1,200 acre developing regional park located in Wright County, Minnesota. The park is being acquired in a partnership between the City of Monticello and Wright County. Since 2006, Wright County and the City of Monticello have been working with the YMCA of Minneapolis (now the YMCA of the Greater Twin Cities) to acquire approximately 1,200 acres for the regional park. The YMCA was interested in selling the property for development to allow for investment in other facilities. However, as the area represented a tremendous opportunity for both active and passive recreation, as well as the chance to sustain important natural resources, the City and County instead developed a partnership with the YMCA for the gradual acquisition of the land for park purposes. The City and County have designated the property as park land within planning documents and have developed a phased acquisition framework for the full 1,200 acres. The County and City have also developed a mission statement for the regional park: “The mission of the City of Monticello and Wright County is to acquire, develop, operate and maintain a regional park and recreation area which enriches the quality of life for our residents and visitors alike, & preserves a natural resource for future generations.” This mission statement supports the acquisition of parkland within a prime growth corridor for the state and the development of a park which encourages increased outdoor recreation participation, while ensuring that important environmental infrastructure is preserved for the region. The Bertram Chain of Lakes Regional Park will offer both passive and active outdoor experiences. A concept plan has been developed for the full park which blends the athletic and natural-resource recreation components, and bases overall park design on the natural conditions and amenities of the land itself. The BCOL Athletic Park will be an asset to the larger regional park and a prime opportunity for families, children and visitors taking part in structured activities at the 4 | Page athletic park to experience and enjoy the outdoor activities in the natural resource area of the park. The master planning for the Bertram Chain of Lakes Athletic Complex is intended to illustrate and facilitate the implementation of a premier athletic park facility which serves the community and the region and connects people to the outdoors. Connecting people to their natural environment through the preservation of a high quality natural resource and the related ability to provide a full spectrum of recreational opportunities for outdoor recreation has been, and will continue to be, the driving force for the planning and implementation of the Bertram Chain of Lakes Regional Park. 5 | Page C. PROJECT BACKGROUND At this time, the City of Monticello is seeking to develop a master site plan and phasing plan for the Bertram Chain of Lakes Regional Athletic Park portion of the regional park. The proposed project will plan an athletic park developed over an approximately 90-115 acre site, completed as a phased construction project. In addition, the City is seeking a feasibility plan and report for the athletic park, which will analyze project impacts and resources, as well as expected operations and maintenance costs for the athletic park. The City is also seeking the development and approval of permitting plans for grading of the athletic park. Finally, this request for proposal includes the management of an initial phase of interim improvements at the athletic park. The City of Monticello has completed prior planning initiatives which will serve as foundation for the detailed master planning requested within this document. The City has completed three activities to-date as related to preliminary or conceptual planning for the athletic park: 1. Athletic Field Subcommittee Assessment & Concept Plan: As part of the City’s efforts to determine initial need for the athletic park, a sub-committee of stakeholders was brought together to develop a needs assessment for athletic fields and use in 2008. Driven by public input and this needs assessment, the resulting conceptual plan for the full athletic park incorporates softball, baseball, soccer and lacrosse fields, parking areas, walking/bicycling pathways, restrooms, concession buildings, and playgrounds. The field placement and orientations were laid out to address the best design for player use, as well as to maximize available land. A map of the concept plan is included as Exhibit D of this document. For Task 1 of the proposal component, the City is requesting an updated needs assessment and reconfiguration of the concept plan based on the assessment. The new assessment will be used as the basis for the final ultimate design of the park and phasing. The prior concept plan should not be a limiting factor in the design, placement, number, or orientation of fields or other park components and is for reference purposes only. The Task 1 scope of work is further defined in Section E of this document. 2. City Park & Pathway Plan: In 2011, the City of Monticello completed and adopted an update to its Comprehensive Plan specific to the community’s park and pathway system. The plan re-affirmed the City’s goals in acquiring and developing the Bertram Chain of Lakes Regional Park. Chapter 3 of the plan lists as one of its seven guiding principles “Prioritizing the acquisition and 6 | Page development of Bertram Lakes Regional Park.” The plan then references the planning objectives supporting this principal. These objectives are listed below and should be incorporated as part of master planning efforts for the park. o The unique opportunities provided by the Bertram Lakes facility will dominate Monticello’s park and pathway planning for the foreseeable future. o Focus on Bertram Lakes for many of the community park facilities that might have otherwise been originally planned throughout the community. o Identify and supplement community park facilities with opportunities for neighborhood park experiences. o Ensure extensive pathway connections to both Bertram Lakes and the community parks to mitigate for the lack of true neighborhood park proximity. o Adapt community park facilities over time to ensure a variety of park and recreation experiences for the users of the facilities as they evolve over time due to access, growth, and demographic change. o The connection between natural and active recreation areas is a particular strength of the Bertram Chain of Lakes Regional Park. This integration will be furthered by attention to transitions and buffers between natural and active areas, and through plan design for sustainability and user accessibility. The regional drawing power of the athletic park also creates the opportunity to introduce new users, especially children taking part in scheduled athletic activities, to the incredible natural resources and activities present at the larger park. 3. City Bio -Solids Property Use Analysis & Concept Plan: In 2014, the City of Monticello completed a preliminary analysis of the use of approximately 26 acres of property lying adjacent to the planned Bertram Chain of Lakes Regional Park, directly to the north. The property is owned by the City of Monticello. The City considered this acreage as a replacement for approximately 11.6 acres of area within the park better suited to natural resource park development and use. The analysis led to a revised conceptual layout for the park, which is included with this document. The concept plan is included as Exhibit D of this document. 7 | Page As part of the planning effort, the selected firm will be asked to evaluate the need for this additional land area and to consider the area as the last phase of development at the athletic park. 4. Bertram Chain of Lakes Master Plan: In 2014, a Master Plan for the park was drafted by the Wright County Parks Department, with support from the City of Monticello. The Master Plan provides an overview of the project as a whole, park history, the governance model for the park, public participation process, cost analysis, and project phasing. The Master Plan also includes as appendix documents a Cultural & Environmental Heritage Study and Phase II environmental analysis. 8 | Page D. PROJECT GOALS: A series of goals for the Bertram Chain of Lakes Regional Park Athletic Park has been developed to guide both the planning process described within this document, as well as continued future development and management of the athletic park. The desired outcome of the planning process is to yield a project product which meets the following goals. 1. Create a premier athletic park destination for the community and the region. 2. Create a park-like environment over an institutional environment, in recognition of the park’s unique blend of passive and active outdoor recreation resources and opportunities. 3. Create an environment which enriches the outdoor recreation experience for Bertram park users, encouraging the exploration and connection to the larger regional park. 4. Provide for buffering and transition between the natural resource and athletic areas of the park. Orient the uses such that the most intense are separated from the most sensitive natural resources. “Intense” shall include an evaluation of both play/spectator use level and actual infrastructure impact in terms of view, required utilities, parking, etc. 5. Design within context of the athletic park’s potential to serve the needs for both local and regional populations, today and into the future. 6. Provide for sustainability throughout design – including stormwater management and irrigation plans, recycling practices, materials for construction, etc. Consider and incorporate low-impact design elements for noise, light, energy and water consumption, field maintenance, etc. Utilize native landscape materials to the maximum extent practical for all landscapes. 7. Balance the needs of players, spectators and other park visitors in field design and layout, as well as placement and number of parking spaces and other visitor and player amenities. 8. Incorporate connections (pathways, access) within athletic park facility nodes and to the larger regional park which are in concert with the regional park concept. In addition, plan for and incorporate connections to the community consistent with the City’s Park & Pathway Plan and Wright County Trail System Plan. 9 | Page 9. Maximize efficiency in design to achieve phasing which meets needs prioritization and cost effectiveness. 10. Create an attractive regional recreation venue through design considerations. Consider the economic benefit and revenue potential of developing a regional athletic park without compromising a park experience. 11. Accommodate future adaption and evolving trends in outdoor recreation in plan design. 12. Consider programmatic opportunities in design, including partnerships with local recreation providers. 13. Provide the framework for immediate implementation for required interim improvements and a framework to guide future improvements. 14. Comply with all local, state and federal laws, policies and regulations, including but not limited to: grant requirements, environmental review and permitting, and accessibility. 10 | Page E. SCOPE OF WORK: TASK SPECIFICS & DELIVERABLES To facilitate the development of the athletic park, the City of Monticello is seeking a consultant or consultant tea m to provide: a master site plan, phasing plan, and feasibility plan and report for the Bertram Chain of Lakes Athletic Park. The master site plan will included a full schematic layout for the park based on a needs analysis, the stated project goals, and prior planning efforts. The phasing plan will include detailed plans for each proposed phase of development, including both an interim layout and full-build out layout as later described. The feasibility plan and report will include a detailed environmental analysis, utility plan (for well and septic systems) and irrigation systems. The feasibility report will also include an analysis of development costs and phasing, accessibility compliance, sustainability analysis, and an operations and maintenance framework and cost estimates. The schematic grading plan component of the project will provide for necessary permitting approval for the phased build-out of the park. The City is also seeking construction design and management for the interim phase of improvements as outlined by the revised master plan and grant requirements , including the oversight of required permitting and approval processes. The services shall be structured into the following task components: Task 1: Needs Analysis/Plan Confirmation Task 2: Master Site Plan, Phasing Plan and Feasibility Plan & Report Task 3: Schematic Grading Plan for All Phases (for Land Alteration Permit) Task 4: Construction Design, Plans & Coordination for Interim Improvements 11 | Page Task 1: Needs Analysis/ Plan Confirmation Task Overview This task will reconfirm conceptual athletic park plan elements and park configuration based on an updated needs assessment. The selected consultant/consultant team will review and understand the existing concept plan and background documents including Outdoor Recreation Grant documents, Park & Pathway Plan, Natural Resource Inventory, archeological survey, City of Monticello and regional park system, and other previously developed BCOL park documents. In preparing the needs analysis, the selected consultant/consultant team will meet with stakeholders, including staff, Bertram Chain of Lakes Advisory Council, BCOL Athletic Sub-Committee, Monticello School District, and Monticello Parks Commission to determine current and future needs and capacities. Task Deliverables  Detailed needs assessment report including: o Methodology of assessment o Record and summary of stakeholder interviews and meetings o Overview of current needs – school district, City of Monticello, region o Projection of future need – school district, City of Monticello, region o Specific evaluation of local versus regional needs o Statement regarding decommissioning potential of other park facilities o Final recommendation based on above, including description of prioritization of improvements Task Meeting and Public Process Requirements  Kick-Off Meeting — Review prior site concepts with City staff, site conditions and design requirements, and receive and/or request project information from the City.  Stakeholder Meetings and Interviews - o City and County Park and Community Center Staff o BCOL Athletic Field Subcommittee o Monticello School District Staff o Athletic Organizations (as needed) o Monticello Community Education Staff o Bertram Chain of Lakes Advisory Council 12 | Page o Monticello Parks Commission  Final Recommendation Staff Meeting – Review final recommendations with City staff Task 2: Finalize Master Site Plan, Phasing Plan, Feasibility Plan & Report Task Overview Master Site Plan: The selected consultant/consultant team will prepare a final master site plan for the site based on Task 1 outcomes. The plan will show the number, location and orientation of all fields, access drives, trails, parking areas, open spaces and buildings. Phasing Plan: The selected consultant/consultant team will prepare a detailed site plan for each phase of the site as follows. A map of the phases is included as Exhibit C of this document. Phase 1: 49.8 acres a. Interim improvements per Outdoor Recreation Grant b. Full build out per master site plan Phase 2: 40.89 acres a. Interim improvements per Outdoor Recreation Grant b. Full build out per master site plan Phase 3: 26 acres (full build-out only) The consultant will first develop an interim improvements plan layer based on meeting the requirements of Outdoor Recreation Grants. The City has been awarded Outdoor Recreation grant funds through the Department of Natural Resources, which require the development of outdoor recreation facilities on the Phase 1 area no later than June, 2017. In its Outdoor Recreation grant application the City indicated that development of the larger athletic park would be a major endeavor, undertaken over a series of years. However, within the initial three years, the City indicated that it would construct a set of first phase improvements intended to meet the grant’s requirement. The first phase of improvements was to include the placement of a mid-parcel access road with open play fields on the south 20 acres of the 49.8 acres of Phase 1, including a 10’ unpaved trail to the passive recreational area of the park. The second phase of interim improvements is based on a second Outdoor Recreation grant (currently 13 | Page pending award) and was to include the extension of the access road to a gravel parking area and extension of the 10’ unpaved trail to additional open play fields. The interim phasing plan must be developed to harmonize with later full-build out plans. For detailed full build-out phasing plans, the consultant will determine detailed plans for recreational amenities and supporting facilities for each of the three noted phase acreages based on most immediate needs determined via Task 1. Feasibility Plan & Report: The consultant/consultant team will prepare itemized engineer’s estimates/construction cost estimates for all improvements in each phase, including as a separate component the interim improvement plans. The consultant/consultant team will provide projections of operations and maintenance for each phase, including the interim improvements. The feasibility plan/report will include an environmental analysis, utility plan, traffic analysis, ADA compliance detail, and sustainability analysis and recommendations. The feasibility plan/report will also be required to include a statement addressing how each of the goals of the project have been met with the master site plan, phasing plan or the report itself. Task Deliverables  Full site Master Plan o 24” X 36” sheets o A full certificate of survey will be provided. o Site topographic survey will be required. o AutoCAD software and the design base drawing. o File must be suitable for input into both City and Wright County GIS.  Interim Phasing Plan o 24” x 36” plan sheet for each of two phases o AutoCAD software and the design base drawing. o File must be suitable for input into both City and Wright County GIS.  Detailed Phasing Plans, Full Build-Out o 24” x 36” plan sheet for each phase o Show all plan features, as appropriate: 14 | Page  Site layout for soccer, football, lacrosse, baseball, softball, and other field or court types, as determined necessary  Spectator stands/areas  Field and site lighting  Concessions/restrooms  Storage and maintenance building(s)  Trails  Natural features, including plazas and open space pavilions  Parking lots  Playgrounds  Picnic and seating areas  Site access and utility access roads  Conceptual irrigation layout (existing well; future city services)  Storm water features (ponds, rain garden, swales, etc.) o Landscape plan, including species and recommended count o Signage and interpretive kiosk plan o Utility plan for electric, well, and septic, as well as future municipal utility connection points and corridors o Plan files must be suitable for input into both City and Wright County GIS.  Project Feasibility Plan & Report to include: o Environmental analysis- description of features and impacts, regulatory compliance o Traffic projections o ADA compliance detail and report o Sustainability analysis and recommendations, including low impact design recommendations and best management practices for design, materials and construction, and on-going maintenance o Engineer’s estimates/construction cost estimates for all improvements by phase  Statement regarding cost efficiency for phased improvement “clusters” o Projections of operations and maintenance for planned improvements Task Meeting and Public Process Requirements  Workshop - Bertram Chain of Lakes Advisory Council, Proposal Steering Committee, Athletic Field Sub-Committee, Parks Commission  Public Open House 15 | Page  Secondary Workshop - Bertram Chain of Lakes Advisory Council, Proposal Steering Committee, Athletic Field Sub-Committee, Parks Commission, City Council, Planning Commission  Parks Commission Review and Recommendation  Council Review and Adoption Task 3: Schematic Grading Plan for All Phases Task Overview Selected consultant will prepare a schematic grading plan for all phases of the athletic facility based on the master site plan and phasing plans. The plan must be prepared to meet Wright County Land Alteration Conditional Use Permit requirements. The consultant will submit the plan to permit review and decision authorities and represent the City and park in the review process. Task Deliverables  Complete and evaluate site soil borings.  Prepare preliminary plan grading, erosion, sediment control and stormwater management sheets using AutoCAD software and the design base drawing. o Plan reviews on 24” X 36” sheets. o City will provide Standard Detail Plates for consultant's use.  Prepare for Wright County Land Alteration Conditional Use Permit.  Submit application and plans as needed for the required permits. Task Meeting and Public Process Requirements  Preliminary Application Meeting – Meet with Wright County Planning & Zoning staff for purpose of understanding requirements and plan detail required for Land Alteration Conditional Use Permit.  Preliminary Design Meeting — Review draft plans and specifications. City will review and provide comments in regard to the preparation of final plans and project deliverables.  City Council – Present for authorization to submit application to Wright County.  Monticello Township Board Meeting.  Wright County Planning Commission Meeting.  Final Meeting — Review and receive final permit plans and related deliverables. 16 | Page Task 4: Construction Design and Plans for Interim Improvements Task Overview: As previously noted, the City has been awarded Outdoor Recreation grant funds through the Department of Natural Resources, which require the development of outdoor recreation facilities on the Phase 1 area no later than June, 2017. The first phase is to include the placement of a mid-parcel access road with open play fields on the south 20 acres, including a 10’ unpaved trail to the passive recreational area of the park. The second phase is pending award and was to include the extension of the access road to a gravel parking area and extension of the 10’ unpaved trail to additional open play fields. At the time of drafting of this RFP, the consultant/consultant team should plan for construction design, plans and coordination for interim improvements associated with the first two phases noted. This task will require management for the completion of the above-required improvements. Task Deliverables:  Prepare preliminary plan sheets using AutoCAD software and the design base drawing.  Plan reviews on 24” X 36” sheets. o City will provide Standard Detail Plates for consultant's use.  Prepare pre-development and post-development site hydrology calculations using HydroCAD software. Project design should mimic natural hydrologic site conditions to the maximum extent practical. Incorporate Low Impact Development (LID) Best Management Practices (BMP's) such as grass-lined swales, infiltration and rain gardens. Note: Storm water design shall meet the standards of the City of Monticello and Wright County.  Design temporary/permanent erosion protection and sediment control BMP's in construction plans and prepare SWPPP (Storm Water Pollution Prevention Plan) documentation for project as required by the Minnesota Pollution Control Agency (MPCA) to obtain an NPDES Phase 11 Construction Activity Permit.  Prepare for City and Wright County storm water permit applications, as applicable.  Prepare final construction plans, bid documents and specifications based on comments from City and Wright County.  Manage bid process. 17 | Page  Preconstruction Meeting — Construction meeting with contractor, utility companies, etc. to review construction plans.  Construction staking of improvements.  Consult with City on as-needed basis during construction (provide hourly rate and an estimate of hours required). Task Meeting and Public Process Requirements:  Bid Opening/Tabulation and Board Recommendation  Pre-Construction Meeting  On-site construction observation 18 | Page F. PROJECT PROCESS PARTICIPANTS The Bertram Chain of Lakes Regional Park has been driven by public input from the project’s inception. As such, public involvement will be an important component of the athletic park planning project. Organizations or persons involved in the project process will include: 1. Monticello City Council 2. Monticello Parks Commission 3. Monticello Planning Commission 4. Wright County Board of Commissioners 5. Wright County Planning Commission 6. Bertram Chain of Lakes Advisory Council: Eleven member volunteer board appointed by the Monticello City Council and Wright County Board of Commissioners. The Advisory Council is responsible for studying and providing information on the usage, operation, management and functions of the Bertram Chain of Lakes Regional Park, and to make recommendations to the Wright County Board of Commissioners and the Monticello City Council 7. Athletic Field Sub-Committee of Advisory Council: Sub-committee of the Advisory Council representing athletic stakeholders and organizations throughout the community. 8. Request for Proposal Steering Committee: Seven member team responsible for managing the Bertram Chain of Lakes Request for Qualifications and Proposal process. 9. General public 10. Monticello City Staff and Consulting Planner and Engineer 11. Wright County Parks Department and Planning Staff 12. Monticello School District, Activities Director 13. Monticello Community Education Staff 19 | Page G. PROJECT SUBMITTAL REQUIREMENTS The City of Monticello is requesting that proposing firms provide two independent sealed submittal packages. The first sealed package submittal is to include firm qualifications, the second sealed package submittal is to include a proposal based on the information and scope of work described within this document. 1. Request for Qualifications: Detailed submission including education and experience. If proposal includes sub-contractors or a team of consultants, the education and experience for all firms and team members is required. List all consultant project management team members and contact information. Project qualifications must include three past project samples related to athletic parks and client references. a. 15 copies plus one digital copy 2. Request for Proposal: The RFP component of the submittal shall be comprised of a detailed response to the 4 primary tasks and process identified in Section E, with a cost for each task identified. Hourly rates for services beyond scope must be identified, along with specifications for reimburseable expenses. a. 15 copies plus one digital copy H. PROPOSED EVALUATION CRITERIA Proposals will be ranked in two distinct processes.  The requests for qualifications will be evaluated based on a series of criteria including, but not limited to: o Team experience relevance o Team qualifications o Relatedness of provided project experience o Integration of proposed firm team members or consultants  The request for proposals will be evaluated based on a series of criteria including, but not limited to: o Cost o Integration of proposed firm team members or consultants o Description and understanding of tasks o Demonstration of ability to meet timeline o Demonstration of project management capabilities o Quality of proposal 20 | Page Three to five firms will be selected by the RFP Project Steering Committee for interview based on the combined scores of these two ranking processes. A separate evaluation developed specific to the interview process, as well as rankings from the qualifications and proposal process, will be used as a basis for selection of the final consultant/consultant team. If a proposal is submitted by a team of consultants or contractors, all such firms must have a representative present for interview. The City of Monticello reserves the right to select a consultant/consultant team outside of the stated criteria or other project ranking evaluation. The City of Monticello reserves the exclusive right to reject any and all proposals and to proceed or discontinue the proposal process. The Monticello City Council is the final authority on all project selection decisions. I. PROJECTED PROJECT TIMELINE A proposed schedule with benchmark dates and participant meetings is attached as Exhibit A. A project timeline chart is included as Exhibit B. Proposals are due no later than 2:00 PM (CST) on Friday, May 15th at 2:00 PM to: Monticello City Hall ATTN: Angela Schumann 505 Walnut Street, Suite 1 Monticello, MN 55362 A pre-proposal meeting will be held at the Monticello City Hall (2:00 pm) on Wednesday, April 29th 2015 to discuss scope and answer questions. Questions will be taken until 2:00 P.M. Tuesday, April 28th. The questions and responses will be provided to all firms by email no later than Monday, May 4th, 2015. Any questions after the pre -proposal meeting shall be sent by email to angela.schumann@ci.monticello.mn.us 21 | Page J. AVAILABLE RESOURCES  Included in appendix as part of this request for qualifications and proposal: o Exhibit A: Bertram Chain of Lakes Athletic Park Proposal & Project Dates o Exhibit B: Bertram Chain of Lakes Athletic Park Proposal & Project Timeline o Exhibit C: Bertram Chain of Lakes Athletic Park Parcel and Phasing Information o Exhibit D: Concept Plan, Bertram Chain of Lakes Athletic Park o Exhibit E: Current Concept Plan, Bertram Chain of Lakes Regional Park  Information available online at www.ci.monticello.mn.us: o Monticello Comprehensive Plan, including: o Monticello Park & Pathway Plan o Monticello Natural Resource Inventory & Assessment o Bertram Chain of Lakes Advisory Council Agenda and Minutes  Information provided to the selected consultant at the initial project meeting will include: o Certificate(s) of Survey o Standard Detail Plate drawings o City standard specifications and related files o Bertram Chain of Lakes Master Plan o Wright County Trail & Bikeway Plan EXHIBIT A - BERTRAM CHAIN OF LAKES ATHLETIC PARK PROPOSAL & PROJECT DATES DEADLINE/ACTION DATE TASK PARTICIPANT(S)DELIVERABLE Request for Qualifications & Proposal Preparation Draft RFQ and RFP document March 13th, 2015 Draft Staff March 17th, 2015 Review by staff Staff April 6th, 2015 Review by Steering Committee Staff, Steering Committee Aptil 6th, 2015 Recommendation for Release by Steering Committee Steering Committee Final draft RFQ and RFP April 13th, 2015 Council approval to post RFP Council Final RFQ and RFP Request for Qualifications & Proposal Submittals & Review April 15th, 2015 Post RFQ/RFP May 15th, 2015 RFQ and RFP package submittals due Consulting firms Week of May 18th, 2015 Review and rank RFQ Steering Committee Week of May 18th, 2015 Review and rank RFP Steering Committee Week of May 18th, 2015 Select 3-5 finalists for interview Steering Committee Selection/Decision for Project Consulting Firm Week of June 1st, 2015 Interview Presentations Steering Committee, Council and Parks Commission invited Recommendation for Award of Contract Steering Committee June 8th, 2015 Approval of firm Council; Steering Committee invited to attend CC meeting June 9th-12th, 2015 Draft contract Staff, consulting firm June 22nd, 2015 Approval of contract City Council 1 Information Gathering & Needs Analysis June 16th, 2015 Project kick-off meeting Selected firm, City and County staff June 15th-On-going Resource document review Selected firm, City and County staff June 15th - July 31st, 2015 Stakeholder meetings and interviews BCOLAC, Parks, Ath Sub-Comm, School District, PC invited Needs Analysis August 17th, 2015 Review of final analysis Selected firm, City and County staff 2 Drafting of Master Plan, Phasing Plan, Feasibility Report August & September, 2015 Preparation of draft master plan, phasing plan and feasibility report Selected firm Draft master plan and phasing August & September, 2015 Preliminary construction costs prepared w/plan Selected firm 2 Review of Master Plan, Phasing Plan, Feasibility Report September 23rd, 2015 Staff review of draft master plan, phasing plan, feasibility report Selected firm, City and County staff October, 2015 Workshop on plans, report Selected firm, BCOLAC, Steering Comm, Ath Sub-Comm; CC October, 2015 Public open house on plans, report Selected firm, City staff, public End of October, 2015 Workshop for recommendation of approval Selected firm, BCOLAC, Steering Comm and Ath Sub-Comm Redraft of master plan & phasing 2 Approval of Master Plan, Phasing Plan, Feasibility Report November, 2015 Parks Commission review and recommendation Selected firm, staff, Parks Commission November 23rd, 2015 Review and adoption of master plan, phasing plan, feasibility report Selected firm, Council, staff, Steering Comm invited Final draft of master plan & phasing TBD Comp plan amendment for Park & Pathway Plan (TBD)Planning Commission, Council December 1st, 2015 Final master plan, phasing plan, feasibility report to City Selected firm Final master plan & phasing 3 Drafting of Grading Plan (Full Complex) November, 2015 Meet with Wright County P & Z Selected firm, City and County staff November, 2015 Preliminary design Selected firm, City and County staff December, 2015 Development of draft grading plan Selected firm Draft grading plan December, 2015 Review of draft Selected firm, City and County staff 3 Approval of Grading Plan December, 2015 Approval by CC for application submittal to P & Z Selected firm, Council, staff January, 2016 Submittal of application to Wright County P & Z Selected firm January/February, 2016 Meeting with Monticello Township Board February, 2016 Wright County review of CUP for Land Alteration Permit Selected firm February, 2016 Final grading plan to City Selected firm Final grading plan 1 MTG 1 MTG PROCESS 1 MTG EXHIBIT A - BERTRAM CHAIN OF LAKES ATHLETIC PARK PROPOSAL & PROJECT DATES DEADLINE/ACTION DATE TASK PARTICIPANT(S)DELIVERABLE 4 Preparation of Plans & Specifications for Phase 1 January, 2016 Meet with staff Selected firm, City and County staff February, 2016 Authorize preparation of plans and specs Selected firm, Council, City and County staff March, 2016 Prepare plans and specs Selected firm Plans and spec documents March, 2016 Appove plans and specs and authorize bids Selected firm, Council, City and County staff 4 Bid & Construction Coordination April, 2016 Manage bid process Selected firm April, 2016 Bids due Selectef firm, proposing bid firms April, 2016 Accept bids and award contract(s)Selected firm, Council, City and County staff April - August, 2016 Construction coordination Selected firm, WSB & Associates as primary PROCESS RFQ & RFP PROCESS INTERVIEW FIRMS PROPOSAL TASK #1 SELECTION & DECISION/ CONTRACT PROPOSAL TASK #2 PROPOSAL TASK #3 PROPOSAL TASK #3 March April May June July August September October November December January February March April May June RFP & RFQ PREP & REVIEW RFQ & RFP SUBMITTAL AND REVIEW FOR CONTRACT BERTRAM CHAIN OF LAKES ATHLETIC COMPLEX - PROPOSAL & PROJECT TIMELINE 20162015 APPROVAL OF GRADING PLAN PREP & APPROVAL OF PLANS & SPECS (PHASE 1) BID PROCESS (PHASE 1) CONSTRUCTION PREPARATION & COORDINATION (PHASE 1) INFORMATION GATHERING & NEEDS ANALYSIS DRAFTING OF MASTER PLAN & PHASING REVIEW OF MASTER PLAN & PHASING MASTER PLAN & PHASING APPROVAL DRAFTING OF GRADING PLAN Phase I—49.8 Acres Phase 2—40.89 Acres Phase 3: 26 Acres EXHIBIT C: BERTRAM CHAIN OF LAKES REGIONAL PARK ATHLETIC COMPLEX PARCEL & PHASING INFORMATION Approximate Boundary of BCOL Regional Park WRIGHT COUNTY PARKS 1901 HIGHWAY 25 NORTH BUFFALO, MN 55313 (763) 682-7693 PREPARED BY: BE R T R A M C H A I N O F L A K E S R E G I O N A L P A R K WR I G H T C O U N T Y P A R K S / M O N T I C E L L O P A R K S / B E R T R A M C H A I N O F L A K E S A D V I S O R Y C O U N C I L SHEET: OF: 1 1 MO N T I C E L L O A T H L E T I C C O M P L E X C O N C E P T P L A N DATE: 0'50'100'200' Graphic Scale: NO R T H May 22, 2014 505 WALNUT STREET MONTICELLO, MN 55362 (763) 295-2711 COMMISSIONED BY: YB YB YB YB CO PK 188 PK 55 SP Baseball/ Softball PK 45 SF SFSF BC/CO/ST Grandstand PK 170 PK 324 PE - North SH/ST CO CO/ST SO SO SH/ST Water City of Monticello (Owner) Br i a r w o o d A v e n u e N . E . Monticello City Athletic Fields Development YB - Youth Ball Field (6) PE - Park Entrance (2) PL - Play Equipment (2) SF - Softball Field (8) OE - Overflow Exit (2) CE - Ceremonial Space BC - Baseball Complex CO - Concessions (4) SH - Shelter (2) SP - Sports Pavillion (2) ST - Storage (3) SO - Soccer Field (11) PK - Parking (972) SO SO SO SF SO SO SO SO SF SF SF SF SP Soccer PE - Central OE OE YMCA Camp Manitou Bertram Chain of Lakes Regional Park CE PL Private Property YB YB PK 100 PK 35 PL PK 55 SO SO 1409 WILLOW STREET, SUITE 110 MINNEAPOLIS, MN 55403 (612) 353-6460