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Home My WebLink AboutCCAgenda_04May19• CITY OF FALCON HEIGHTS Regular Meeting of the City Council City Hall 2077 West Larpenteur Avenue AGENDA May 19, 2004 A. CALL TO ORDER: 7:00 PM B. ROLL CALL: GEHRZ KUETTEL LAMB LINDSTROM TALBOT WORTHINGTON SHEA KODLUBOY ATTORNEY ENGINEER C. COMMUNITY FORUM: D. PRESENTATIONS: • i-~~ E 1. CERT Graduation and Presentation-Mayor Gehrz APPROVAL OF MINUTES: Apri128 and May 5, 2004 F. PUBLIC HEARINGS: None Scheduled G. CONSENT AGENDA: TAB 1 ~'~33 1. General Disbursements through May 14, 2004: $ 113,096.58 Payroll (OS/01/04-05/15/04): $ 12,121.09 TAB 2 ~S s` 2. Approval of the restated and amended bylaws of the Fire Relief Association TAB 3 3. Appointment of new firefighters to the Fire Department TAB 4 H. POLICY AGENDA: 1. 2003 CAFR Presentation TAB 5 2. Presentation from the Metropolitan Mosquito Control District TAB 6 ~~. ~! 3. MSRA Proclamation TAB 7 I. REPORTS FROM COUNCIL MEMBERS: J. INFORMATION AND ANNOUNCEMENTS: I• • CITY OF FALCON HEIGHTS COUNCIL MINUTES Apri128, 2004 Mayor Gehrz called the regular Council meeting to order. PRESENT: Mayor Sue Gehrz, Council members Laura Kuettel, Robert Lamb, Peter Lindstrom and Richard Talbot Also present: City Administrator Heather Worthington, City Attorney Roger Knutson, City Engineer Terry Maurer, Deputy Clerk Mary Shea Kodluboy, Ramsey County Commissioner Janice Rettman, Kenneth Haider, Director and County Engineer, Ramsey County Public Works, and Tim Mayasich, Senior Transportation Planner, Ramsey County Public Works COMMUNITY FORUM: There was no commentary from the audience. PRESENTATION: Annual Report from the Saint Anthon Police Department - Lt Jeff Scholl Mayor Gehrz said that each year, the Saint Anthony Police Department makes a presentation to the Falcon Heights City Council about the previous year's crime statistics, enforcement, and other calls and incidents. Lt. Jeff Scholl, Saint Anthony Police Department, introduced himself and said he is a patrol lieutenant with over 20 years of law enforcement experience. Their department has 201icensed police officers: 18 males and 2 females. There is a Chief, a captain, two patrol lieutenants, a full-time investigator, a sergeant and two office managers. The average age is 36, with the age range being 27-64. They have ten reserve officers who do parking patrol, house checks and prison transports. Apart-time community service officer assists on minor calls. Lt. Scholl gave a brief, oral review of the written report that had been provided earlier. He reviewed patrol statistics, investigations, crime prevention activities, domestic terrorism, police officer education and training, the reserve officer program and 2003 accomplishments. He said the Department couldn't do its job without the help of the citizens of Falcon Heights. The City's numbers are low because of the citizens of Falcon Heights. Mayor Gehrz asked for comments and questions from the Council and the audience. Council member Talbot asked if resident usage of 911 is increasing or decreasing. Lt. Scholl said that 911 is still underutilized. He encouraged residents to report anything they observe or are concerned about. Residents can also contact Ramsey County Dispatch at 651-484-3366. Council member Talbot asked what a terroristic threat is. Lt. Scholl said that would be if • someone contacted you and told you they were coming over to kill you tonight • FALCON HEIGHTS CITY COUNCIL MINUTES _2_ Apri128, 2004 Annual Report from the Saint Anthony Police Department Lt Jeff Scholl (continued) Council member Lindstrom asked if other cities are using something that he would like to see Falcon Heights use. Lt. Scholl said he would like to see a bike patrol implemented on certain nights, particularly at State Fair time. Also, the officers need to get to know the buildings being constructed at the SE Corner and will have to familiarize themselves with that site. The City is above average. The City Administrator is highly trained in emergency response and preparedness, and mutual aid meetings are held every month with the participating communities. Council member Lindstrom asked if the 2003 statistics include the State Fair and the University, and Lt. Scholl said no. Council member Kuettel mentioned the City's newsletter and suggested that the Police Department have a page in the newsletter. Council member Lamb asked if there are increased incidents of crime in the community during the State Fair and Lt. Scholl said no. In response to a question from Council member Lamb about locating calls from cellular phones, Lt. Scholl said that cell phone calls can be traced to the closest cell phone tower. He is aware that Hennepin County will be upgrading in this area but he is not sure about Ramsey County. There are increasing numbers of calls from cell phones. Mayor Gehrz asked how the City can implement a bike patrol. Lt. Scholl said he isn't sure if there is a financial aspect. He would like to see an increase in the number of officers who participate. They do bike rodeos, which are quite educational, and the parents and kids like them. Mayor Gehrz thanked Lt. Scholl and all of the officers for another great year of law enforcement services. She continuously hears good things about the Saint Anthony Police Department and its officers. She appreciates that when the City has needed extra help, the extra help has been available. She said she was glad to see reductions in the traffic accident numbers. Council member Kuettel asked that the volunteer reserve officers also be thanked. In response to a question about how to become a volunteer reserve officer, Lt. Scholl said that information about the application process can be obtained by contacting Ramsey County Dispatch at 651-484-3366. The applicant must meet a minimum age requirement of 18 and have a good driving record. Medical training is helpful. They must be able to commit about 150 hours a year. APPROVAL OF MINUTES: The Council minutes dated April 14, 2004 were unanimously approved as submitted. • PUBLIC HEARINGS: None Scheduled • FALCON HEIGHTS CITY COUNCIL MINUTES _3_ Apri128, 2004 CONSENT AGENDA: Mayor Gehrz said there would be an addition to the Consent Agenda: Item G6: Consider approval of the amended and restated development agreement between the City and the Falcon Heights Town Square Limited Partnership; an amendment to the development agreement between the City and the Town Square Senior Apartments LLC; and an amendment to the development agreement between the City and Townhomes at Town Square LLC. Attorney Knutson said the property wasn't platted when the original development agreements were signed. These amended documents now have the correct legal descriptions. Also, the percentage distributions of TIF will be between the three projects. The initial runs were off just a little bit. The developer won't receive any more money, but each phase will get a certain percent of the total amount. Each phase will balance out. Kuettel moved approval of the Consent Agenda, as outlined below. The motion was unanimously approved. 1. General Disbursements through Apri122, 2004: $ 96,995.69 Payroll (04/01/04-04/15/04): $ 11,710.85 2. Approval of the Police Services Contract with the City of Saint Anthony Village for 2005 and 2006 3. Replacement of cable equipment: Four bids, outlined below, were received for replacement of the scan converter, video amplifier and scan converter with overlay. The low bid from Alpha Video was accepted: Alpha Video: $ 947.00 Roscor: $1,085.00 AVI: $1,092.00 B&H Photo-Video: $1,242.00 4. Approval of agreement between the City of Falcon Heights and the Minnesota Department of Transportation for payment to the City for the construction to be performed at Curtiss Field pond and Resolution 04-09 authorizing the Mayor and City Administrator to execute that agreement 5. Authorize the purchase of a John Deere 1445 commercial tractor from Scharber and Sons, Inc., at a total cost of $23,223: Tractor and attachments $19,582 Leaf Vacuum System $ 2,224 State sales tax 1 417 6. Consider approval of an amended and restated development agreement between the City and the Falcon Heights Town Square Limited Partnership; an amendment to the development agreement between the City and the Town Square Senior Apartments LLC; and an amendment to the development agreement between the City and • Townhomes at Town Square LLC 3 • FALCON HEIGHTS CITY COUNCIL MI NUTES _4_ Apri128, 2004 POLICY AGENDA: Consideration of Resolutions 04-10 and 04-11 re arding turn back of Hamline Roselawn and Hoyt Avenues from Ramse County Administrator Worthington utilized the LCD projector to describe the turn back of Hamline, Roselawn and Hoyt Avenues from Ramsey County to the City, and the current conditions of those streets. A summary of her presentation is outlined below. She said that in late 2003, the City, represented by her and Parks and Public Works Director Maertz, began meeting with staff from Roseville, Saint Paul, and Ramsey County to negotiate the turn back of Roselawn, Hamline and Hoyt Avenues. These discussions extended into 2004, and the parties reached an agreement in March, 2004 regarding the funding of the turn back, repair of existing County road included in the turn backs, and agreements between Falcon Heights and the two cities, as well as the County. Because all of the roads included in this turn back are border roads, the turn backs negotiated include two cities~ither Falcon Heights and Roseville, or Falcon Heights and Saint Paul. She said the State of Minnesota Street Aid (MSA) account filing deadline for turn backs is May 1, 2004. In order to have these roadways placed on our system for MSA in 2005, the turn backs must be recorded by that date. These roadways represent a significant addition for funding to our MSA account, which helps to fund street projects and other street-related projects such as the recent Curtiss Field reconstruction project. The County and City staff negotiated a turn back agreement that included major repair work, as well as cash payments for the turn back of certain portions of Roselawn and Hamline Avenues. The value of this work, or cash payment, is listed below: • Roselawn (Snelling to Hamline) turn back: $175,000 total (cash payment shared by Roseville and FH). • County repair of all deteriorated catch basin on Roselawn from Cleveland to Hamline; • Mill and overlay of Roselawn from Cleveland to Fairview; Crack seal of Roselawn from Fairview to Snelling: $117,600 • Hamline Avenue reconstruct (Falcon Heights only): $53,000 • Roselawn, Fulham to Cleveland, repair structures and mill and overlay: $184,774 • Seal coat Hoyt from Snelling to Hamline: $4,000 Total: $534,374 (both direct payments and value of improvements prior to turn back) to the cities of Roseville and Falcon Heights. • There are four resolutions for the turn backs. Resolutions 2004-10 and 2004-10A are for the turn back of Hamline Avenue, from Hoyt to Larpenteur, and Roselawn, from Cleveland to Hamline. FALCON HEIGHTS CITY COUNCIL MINUTES • Apri128, 2004 -5 Consideration of Resolutions 04-10 and 04-11 re ardin~ turn back of Hamline Roselawn and Hoyt Avenues from Ramsey County (continued) Administrator Worthington said that Resolutions 2004-11 and 2004-11A are for the turn back of County State Aid Highways (CSAH), Hoyt Avenue, from Snelling to Hamline, and Roselawn Avenue, from Fulham to Cleveland. Two resolutions are needed because two sections of the turn backs are County State Aid Highways (CSAH) and require a different resolution from the County Road (CR) turn backs. She said that Attorney Knutson prepared the joint City/County resolutions (2004- l OA and 2004-11 A) to provide added protection for the City. Engineer Maurer said the City has about $173,000 available in MSA funds. The City will be taking a little out for Curtiss Field. The City will get about $127,000 in 2004, and at the end of 2005 will have about $175,000 to spend. Cities can also take out interest free loans, up to three times their annual allotment, or up to $380,000. In the past the City has allocated 35% of its MSA funds to maintenance. He reviewed the numbers with Administrator Worthington and is confident there is sufficient funding available. If the roads are turned back, the ones that currently don't have State aid will get a little bit of an increase because the system is complete and well built. Administrator Worthington said the City's maintenance schedule calls for seal coating and crack sealing every five years. The City could decrease its maintenance program for several years, to increase the reconstruction allocation, without affecting any of the maintenance programs, and still have a healthy balance in the maintenance category. Mayor Gehrz asked Engineer Maurer if he would review how MSA is determined. Engineer Maurer said that MSA funds are gas tax funds. 62% goes to the State highway system, 29% to the counties, and 9% goes to the 110-112 cities that are eligible. A community's population and the State's determination of need (what it takes to build the system to State aid standards in any given year) are factors in how the 9% is shared. Council member Lamb asked Engineer Maurer to speculate a little bit. Over the last few years we have seen HACA cut and eliminated to make the State budget. We have seen State aid to cities cut and eliminated to make the State budget. We have seen State aid to schools eliminated all to make the State budget. Do you see anything on the horizon that puts MSA in jeopardy or is this a sacred cow? Engineer Maurer said that there hasn't been a gas tax increase in 20 years. There is always a concern from the City side about the equation because the Legislature may decide cities aren't spending all of their money and don't have as much of a need as the County and State systems. He thinks that concern is real. The city side of the State aid system has done some things like offering the no interest loan program so the pile of money isn't as large as it used to be. This has been a concern for as long as he has worked with the system, but thus far, it hasn't been tinkered with. Council member Lamb said that the last few years, we have seen the Legislature divert funds to other areas. S FALCON HEIGHTS CITY COUNCIL MINUTES Apri128, 2004 -6- Consideration of Resolutions 04-10 and 04-11 re arding turn back of Hamline Roselawn and Hoyt Avenues from Ramsey County (continued) Council member Lamb said that as we look at this and our spending account, we have to factor in what's the future of MSA. Recent history suggests to him that those accounts are in more jeopardy now than five years ago. Engineer Maurer said he believes the MSA distribution formula is statutory. He doesn't think the gas tax itself is in jeopardy but he does think that the Legislature could tinker with the division percentages between State, County and city. Council member Lamb said that the point he wants to make is that one of the anchors of this proposal is that the MSA account exists and we have to be very careful that we don't automatically assume that it always will or that it always will at the level that it currently is. Mr. Kenneth Haider, Director and County Engineer, Ramsey County Public Works, said that he wanted to make a few comments about the State aid system. The 62, 29, 9 split is a constitutional split that is sacred. The question is, how much money goes into the big pot of money that is separated out? There are some general fund revenues that the State puts in and that certainly is always under discussion. That is where the problem lies, the smaller portion of money that goes into the big system. The gas tax revenue is about $626,000,000. License fees, which he believes are also dedicated funds, are about $488,000,000. When you look at the general fund reimbursement for some of the tab fees and other things that are taken out of the system, you have about $100,000,000. The sacred money is in the $1,114,000,000 range. The unsacred money is in the $100,000,000 range. The turn back program was started in the late 1980's. The Legislature passed legislation that said Ramsey County should do a study and look at the jurisdiction of roadways as it relates to State, County and local. Ramsey County is now in the thirteenth year of a ten year program. There has been a lot of discussion and negotiation, but the turn backs are progressing. There are similar things happening with virtually every city in Ramsey County. Ramsey County is in the process of accepting a lot of State street roadways. Council member Kuettel asked how many cities have not accepted turn back proposals. Mr. Haider said that an agreement could not be worked out between the County, Lauderdale and Falcon Heights regarding Fulham Street, so the County is rebuilding it and it will remain on their system. Mayor Gehrz asked what criteria are used to determine which streets stay with the County system and which ones go. Mr. Haider said the County's responsibility is to create a system with roads that connect one to the other. County roads tend to be higher traffic, multi-lane. What doesn't fit into the County system is looked at as a turn back to the city. The State looks at its system for a lot of trunk highways. Ramsey County will be accepting roadways like Highway 96 and Rice Street. In response to a question from Council member Talbot, Mr. Haider said that Ramsey County's system has been increased by 15 miles and the traffic numbers have gone up substantially. C FALCON HEIGHTS CITY COUNCIL MINUTES • Apri128, 2004 -7- Consideration of Resolutions 04-10 and 04-11 regarding turn back of Hamline Roselawn and Hoyt Avenues from Ramse~County (continued) Mr. Haider said that Ramsey County, as the most urban County in the State, suffers because of the system used to distribute the money. Urban counties compete poorly for the monies that are available. The formula that is used was determined in 1958 and is as follows: 10%-equalization; 10%-motor vehicle registration; 30%-lane miles; 50%-needs. Mayor Gehrz asked what would happen to Roselawn if Falcon Heights refused to take it back. Mr. Haider said it would stay under County jurisdiction. Every two years it would be studied and ranked in the County's system. When roadways start to deteriorate the County fixes them. Roselawn would get some attention in the not too distant future. The County would certainly do some pavement activity. Mayor Gehrz asked if it would still be to a rural standard rather than urban standard and Mr. Haider said yes. Council member Talbot asked about cost distribution and sharing between Saint Paul and Roseville. Administrator Worthington described the various improvements and the cost sharing that has been negotiated with Saint Paul for Hamline Avenue and Hoyt Avenue, and Roseville for Roselawn Avenue. In response to a question from Council member Lindstrom about the MSA monies, Administrator Worthington said there is a penalty if a City doesn't spend their allocation down. Council member Lamb asked if, in the recent past, Falcon Heights has ever suffered the negative effect and Engineer Maurer said there were some minor penalties. Council member Kuettel asked what the total mileage will be and Administrator Worthington said it will be between 3.5 to 4 miles. Council member Kuettel asked what effect this will have on annual snowplowing costs. Administrator Worthington said the abutting cities will share in the cost of plowing and plowing contracts will be negotiated based upon the cost. Snow plowing ran about $600/mile this last year, which was atypical because of the snow quantities. Council member Lindstrom said that he realizes the roads are County roads but are no longer County thoroughfares. No one takes Roselawn from one end of the county to the other. The principle of local control factors into this for him. The City can set the schedule. When he first moved to Falcon Heights he lived five houses away from Hamline and since the day he got on the City Council he has been asking when Hamline is going to be redone. There is a hill that slopes down near Hoyt and it's completely degraded with potholes. It's patched a bit now but is still very rough. It floods. Administrator Worthington has been knocking at St. Paul's door for a long time saying let's work on this. Let's go. Now, if we turn this back, we can set the schedule as to what we want to do with these roads in our neighborhoods. FALCON HEIGHTS CITY COUNCIL MINUTES Apri128, 2004 -8- Consideration of Resolutions 04-10 and 04-11 regarding turn back of Hamline Roselawn and Hovt Avenues from Ramsey County (continued) Council member Kuettel said we can do that up to a point because we share these roads with other cities. Fortunately, St. Paul is saying 2005. Administrator Worthington said that St. Paul has a residential street vitality program. It is a 15-20 year capital project plan that shifts and moves around a little, depending upon the wards. This section of Hamline can be rebuilt in 2005 when St. Paul rebuilds Como Park. We came to this conclusion in a meeting with them regarding Godfrey Pit and the Capitol Region Watershed. St. Paul agrees that this will be the best time to do this since they will be in that area. There is a significant amount of storm drainage work that needs to be done on Hamline and our city will be responsible for. It will be about $27,000 in cost. The whole street will be dug up and water main replacement will be done at the same time. It took a lot of negotiating and discussion to get St. Paul to agree to this. Mayor Gehrz said that with regard to Roselawn and the current storm water situation on that street, what effect is the ongoing runoff having on the life of the new roads? The City spent a lot of money rebuilding those roads. Engineer Maurer said it shouldn't have a lasting negative effect because the water drains off. The concern is when water sits on a street, seeps through cracks and saturates the base. RESOLUTIONS 2004-10, 2004-10A, 2004-11 and 2004-11A Lindstrom moved adoption of Resolutions 2004-10 and 2004-10A authorizing acceptance of the turn back of Hamline Avenue (County Road 132), from Hoyt Avenue to Larpenteur Avenue, and Roselawn Avenue (County Road 114), from Cleveland Avenue to Hamline Avenue, located in the City of Falcon Heights; and adoption of Resolutions 2004-11 and 2004-11A authorizing acceptance of the turn back of Hoyt Avenue (County State Aid Highway 56) from Snelling Avenue to Hamline Avenue, and Roselawn Avenue (County State Aid Highway 26), from Fulham Street to Cleveland Avenue, located in the City of Falcon Heights. Council member Lamb said he was not sure where to start. He thinks there has been a process and discussion breakdown. Here we are, two days before the deadline, and this is the first opportunity the Council has had to discuss this.. This represents a major shift of responsibility from the County to the City. As such, we have an obligation to examine the impact this will have on our tax policy, assessment policy, reserve policy, capital budget, and we also have an obligation to look at what effect this will have on affordable housing. We have talked many times about the affordable housing crisis. There is no doubt, when you look at that presentation these roads need to be repaired. That is not the question. The question is, why should this be transferred to the 2,000 Falcon Heights taxpayers from the 100,000 Ramsey County taxpayers. • We need to look at this thing as a broader issue. 8 FALCON HEIGHTS CITY COUNCIL MINUTES Apri128, 2004 -9- Consideration of Resolutions 04-10 and 04-11 re arding turn back of Hamline Roselawn and Hoyt Avenues from Ramse~unty (continued) Council member Lamb said that recently we have developed a trend where levels of government are passing off responsibilities and costs to lower levels of government. That is how they are meeting their budgets. Earlier in the day, while taking a break from sanding a floor, he sat down and tried to remember, over the past few months, what bugs him about this. He put together a list, outlined below, that he wanted to read to the Council and the viewing audience. • Federal government -passes "No Child Left Behind". Doesn't fund it. Passes it on to School Districts and the cost ends up on the property tax bill. • Federal government - mandates a ground water cleanup program. Doesn't fund it. Passes it on to the State, who doesn't fund it, and the cost ends up on the property tax bill. • Federal government -passes Title I. Doesn't fund it. The cost ends up on the property tax bill. • Federal government -homeland security. Partially funds it. Passes the rest of the cost on to the counties and cities. The cost ends up on the property tax bill. • • State of Minnesota -Assumes more responsibility during the Big Ventura budget fix for primary and secondary education. The administration changes. Doesn't fund it. The cost ends up back on the homeowner's property tax bill. • State of Minnesota -Reduces its commitment to mental health and medical coverage for the poor. Passes the responsibility to the counties. The cost ends up on the property tax bill. • State of Minnesota -Fails in its responsibilities to screen repeat sex offenders. Passes that responsibility to the counties. The cost ends up on the local property tax bill. • State of Minnesota -Reduces aid to cities under Governor Pawlenty's budget fix. Passes the costs to the school districts, counties and the cities. The cost ends up on the property tax bill. • State of Minnesota -Governor Pawlenty insists upon, and the Legislature supports, levy limits, which severely inhibits local government's ability to manage local revenues. Effectively and ultimately, if this keeps going on, this will cause cities to choose between funding essential services, such as fire and police, or funding mandates. • State of Minnesota -Over the last two years the State has changed the property tax classification system, lowering the taxes on business and commercial, and raising it on the homeowner's property tax bill. • State of Minnesota -limits levies, shifts the cost to the homeowners and then confiscates 6.5% of the property tax revenue collected by the cities, counties and school districts when the property tax dollar is spent on hard goods. • The trend of shifting costs to the City homeowner has worked so well at the Federal level, now he is thinking that the County is thinking about this. FALCON HEIGHTS CITY COUNCIL MINUTES Apri128, 2004 -10- Consideration of Resolutions 04-10 and 04-11 regarding turn back of Hamline Roselawn and Hoyt Avenues from Ramsey County (continued) Council member Lamb said that property tax is the most regressive of all taxes and this is going to cost us property tax dollars. People who are retired and on a fixed income are under more and more pressure because of property taxes. We talk about affordable housing all the time and all tax does is push up the cost of housing, making it more expensive to live. We really need to back up off of this thing and start thinking about, in a broad picture, what we are going to do to stop this shift of responsibility from higher government to lower government, and stop the shift of cost from higher government to lower government, because we are the lower government. The only opportunity we have to raise revenues is through the property tax which, in his opinion, is the worst of all taxes, and then they come and limit our ability to even manage the local revenues. The question here is not whether Hamline or Roselawn are in bad shape. That is obvious. We have 2,000 taxpayers. Ramsey County has about 100,000. We need, in a comprehensive way, to sit down with the County, other cities, and ultimately the State of Minnesota, to figure out how to stop this shift of responsibility from the higher levels of government to the lower, and essentially to stop the cost shift from other types of revenue raising things to the property tax revenue. So, I am voting against this. Even if you are inclined to support this, what I would ask you to do is to think about why we are asked here, two days before the deadline, with no real consideration of our budget, no real consideration of the policies we have worked on regarding taxes and reserves, no real consideration of what it does to the cost of affordable housing. We have two days in order to apply for MSA for 2005. I think we ought to vote no and take the time to really assess what this question is going to do to us and ask ourselves, as the representatives of the 2,000 taxpayers in this city, if we really want to assume the long term liability for these streets on our taxpayers. Mayor Gehrz said that she agreed with most of what Council member Lamb said, in terms of shifts that have been happening, but one thing that she really wants to say is that she is not sure this is the way to do it. The issue of transfer of streets of all types between State and County, County and City, has been going on for a long time. This isn't something that just happened this year. In fact, in our budget considerations, when we looked at our 10 year plan that staff prepared for us, we did have Roselawn and Hamline in those figures. So, we have seen this before. This isn't something that has just come up two days before. Council member Lamb said that the whole issue has not been discussed in any great depth. He agrees that there are some numbers in that budget that cover some eventualities. The fact is that every dollar that we spend to assume this responsibility that we are being asked to pick up is a dollar less than we have to maintain the City that we have today. We can talk about the different sources of funding that are available. That is just the old government tax shell game. We have a responsibility to maintain this City. The County has the responsibility to maintain the County roads. And, before we take on any of what is the County's responsibility today, we may need more than an hour and fifteen minutes of discussion two days before the MSA filing. to • FALCON HEIGHTS CITY COUNCIL MINUTES -11- Apri128, 2004 Consideration of Resolutions 04-10 and 04-11 re ardin turn back of Hamline Roselawn and Hoyt Avenues from Ramsey County (continued) Council member Lindstrom said that he completely understands Council member Lamb's passion regarding unfunded mandates. He pledged to work with him, using whatever means possible, to work with the State and Federal governments to address that issue. He doesn't think the Council should draw a line in the sand on this turn back tonight. Let's move forward on this right now. It doesn't do anyone any good, especially those folks on Roselawn who have to put up cement barricades to keep the water out of their homes. Criticism of the process is unwarranted. He reiterated the comments that he made earlier about Hamline Avenue. The issue of turn back came up years ago and as the Council was working on this year's budget. Council member Lamb said the County has stated that those roads will be repaired by the County, maybe not to the City's standards, but we can't lose sight of the fact that they will be repaired by the County. Council member Lindstrom asked if they will have curbs and Council member Lamb said he didn't believe so. Council member Lindstrom said that water will still run into the yards. • Council member Lamb said the Council has an obligation to look out for the taxpayers of the City. The property tax system is under incredible pressure today. The City has made a commitment to work on affordable housing in this City. Property tax is a secondary component of the costs involved in affordable housing. Mayor Gehrz said that these issues have been around for quite some time. This may seem new but it isn't new. Council member Lamb said that if we are responsible to our taxpayers, we ought to really assess what this means to them before we approve it. Council member Kuettel said she thought the Council should have had a workshop or two on this. She would have appreciated that. Council member Talbot said that he agreed with Council member Lamb in principle. He would have liked a workshop to discuss this. Mayor Gehrz said that even if the County continues to be responsible for these roads, don't think that these roads will be put at a higher priority than other roads in their long range plan. Three Council members have indicated they would vote but would like more time. Even if we do not vote on this tonight, what happens to the whole process of potential agreements? What will be the consequences? • FALCON HEIGHTS CITY COUNCIL MINUTES Apri128, 2004 -12- Consideration of Resolutions 04-10 and 04-11 regarding turn back of Hamline Roselawn and Hoyt Avenues from Ramse County (continued) Administrator Worthington said the City will not have any agreements if we don't vote by May that the turn backs go on the MSA system. We will go back to the drawing board at that point. This process has been negotiated over a two year period. It has been brought up in multiple budget workshops and she has given periodic updates on the process. In the past, the turn backs have been negotiated by the City Administrator and brought to the City Council for approval. She followed the identical process that has been in place for more than fifteen years in the City. She would be happy to change that process in the future. Mayor Gehrz, said that Administrator Worthington commented that if we don't vote on this tonight, we go back to the drawing board. In the negotiations the County agreed to a considerable sum of money. Administrator Worthington said that on Roselawn alone, between Hamline and Snelling, the County doubled the amount of money they were prepared to give because of the City's negotiations. . Council member Lamb said the turn backs have the greatest effect on us. It is more important to us. Our risk is the highest. Mayor Gehrz said that she would vote in support of the turn backs. Who benefits? The roads are used primarily by people who live in the community. Taxpayers and residents are being adversely affected. She doesn't have any confidence there will be improvements. The Council has an obligation to the people. Staff has negotiated very favorable agreements. Council member Talbot said that he feels torn. He agrees with both. Both are making good practical points. This is not something we can back out of. These roads become ours. Council member Lindstrom said that the cost of redoing the roads doesn't get cheaper. Mayor Gehrz said that with regard to levy limits, she had an opportunity to be at something this past weekend where House Majority Sviggum was in attendance. He was asked about levy limits and if municipalities were out of the woods for now. He said they are. Council member Lamb said the Council has a responsibility to 2,000 taxpayers. This has some very big implications. If the Council votes to do this, it will be forever. If the Council delays, the Council can assess passing the responsibility and passing the costs. We're at the end of the trail and we don't have anyone to pass it to. We spent a lot of time on the Reserve Policy. The Council needs to think this through and they have not done that. la • FALCON HEIGHTS CITY COUN CIL MINUTES Apri128, 2004 -13- Consideration of Resolutions 04-10 and 04-11 re ardin~ turn back of Hamline Roselawn and Hovt Avenues from Ramsey County (continued) Council member Kuettel said what's the picture for the turn back situation? What does it mean? Mayor Gehrz said that she is not confident this can be delayed a year. These are complicated planning processes. Council member Lindstrom said these are City roads. They are not County level roads anymore. You can't get from Hamline to University Avenue. We should be the ones making the decisions about these neighborhood roads. Council member Lamb said that he doesn't disagree that the nature of the roads has changed. We have 2,000 taxpayers. Consider all of the things that come from this. We are the low person on the totem pole. The County and State can say they don't like unfunded mandates. We don't have anyone to hand off to. It is our responsibility to work through this and represent the taxpayer. Council member Talbot said that he was enormously proud of how the Council handled the LGA loss. This has been discussed. It was in the 10 year plan. We did talk about the worst case scenario. Administrator Worthington said that future maintenance will be very minimal. Once they are reconstructed they will have a 20-25 year life. All of that was taken into consideration. Council member Lamb said the City still assumes the long term liability, even if they were in pristine condition. Administrator Worthington said that areas of Roselawn Avenue have less than 2" of base. It will get worse because the drainage won't be corrected. The motion was approved with Gehrz, Lindstrom and Talbot voting in favor; Lamb and Kuettel opposed. REPORTS FROM COUNCIL MEMBERS: Council member Lamb said the Solid Waste Commission met with the refuse haulers. It was a very fruitful meeting and there will be a follow-up meeting with them to discuss trucks and environmental issues. His second item was that at the public hearing on March 24, there was • very good attendance and about two dozen speakers. 13 FALCON HEIGHTS CITY COUNCIL MINUTES -14- • Apri128, 2004 REPORTS FROM COUNCIL MEMBERS (continued) Council member Lamb said there were three areas of factual disputes: 1. Discussion about whether or not the NRG is at capacity: The fact is it isn't at capacity. It has the capacity to take more garbage. 2. Do all of the haulers licensed to operate in Falcon Heights take the refuse collected to Newport? 3. Can the City achieve most of its goals through the licensing process? The City doesn't have the licensing power to mandate where refuse is hauled. The City has no licensing authority to regulate cost or regulate the number of trucks used. The attorney for the haulers, Doug Carnival, has offered to set up a tour of a landfill. Information about the new refuse hauling trucks is being gathered. Progress is being made. Council member Kuettel reminded the viewing audience that Curtiss Field will be closed while it is being renovated this year. INFORMATION AND ANNOUNCEMENTS: • Council member Talbot thanked the Saint Anthony Police De artment for the excellent service p they provide the community. He reminded the cable audience that if anyone is interested in becoming a reserve officer, they can contact Ramsey County Dispatch at 651-484-3366 to obtain more information and/or an application. Residents are not using 911 as well as they could. Make use of 911. Mayor Gehrz said it is her understanding the Legislature will not be putting levy limits in place and this is a good thing. The effect of levy limits is that instead of holding down property taxes at the local level, taxes are driven up. She reminded the viewing audience that the Council meeting dates for May have been changed. The Council will be meeting on the first and third Wednesday evenings in May: May 5 and May 19. This information is on the web site and on cable. The regular City Council meeting was adjourned at 9:25 PM. Respectfully submitted, Mary Shea Kodluboy Deputy Clerk r~ L ~4 c: CITY OF FALCON HEIGHTS COUNCIL MINUTES May 5, 2004 Mayor Gehrz called the regular Council meeting to order. PRESENT: Mayor Sue Gehrz, Council members Laura Kuettel, Robert Lamb, Peter Lindstrom and Richard Talbot Also present: City Administrator Heather Worthington and Deputy Clerk Mary Shea Kodluboy COMMUNITY FORUM: Mr. Brian Olson, 1592 Roselawn Avenue, said that the grass that was torn up along Roselawn Avenue has been repaired and looks real spiffy. With regard to the turn back of Roselawn to the City, this will be quite a burden for Falcon Heights and Roseville taxpayers. The intersection of Roselawn and Snelling does not have a white warning light for emergency vehicles, which is needed at State Fair time when the early morning traffic blocks the whole intersection. Garbage . issue: Will the meeting on Thursday, May 20, be televised and will people be able to speak? He said the meeting on Apri120 with the haulers wasn't televised. Mayor Gehrz and Council member Lamb said that the meetings Mr. Olson mentioned are being held before the Solid Waste Commission, not the City Council, and people are being encouraged to attend and speak. Mr. Olson encouraged people to go online to the web site stopwmx.org, which has a lot of information about Waste Management, the refuse company, and their questionable business practices. The web site also includes information about lawsuits. PRESENTATION: None Scheduled APPROVAL OF MINUTES: The minutes for the April 28, 2004 Council meeting will be available at the May 19, 2004 Council meeting. PUBLIC HEARINGS: None Scheduled CONSENT AGENDA: Kuettel moved approval of the Consent Agenda, as outlined below. The motion was unanimously approved. General Disbursements through April 30, 2004: $ 15,853.01 Payroll (04/15/04-04/30/04): $ 11,356.60 • l~" FALCON HEIGHTS CITY COUNCIL MINUTES _2_ May 5, 2004 POLICY AGENDA: Consideration of enforcement action with regard to U S Bench Administrator Worthington said that in early April, staff notified U.S. Bench that they were in violation of a City ordinance that prohibits advertising signs in the right of way. This enforcement action was the result of a citizen complaint about the location of a bus bench adjacent to the resident's property. The company was given until May 11 to remove their benches. They have removed the bench the citizen complained about. There are two representatives for U.S. Bench in attendance this evening to appeal the City's enforcement action. The City has been looking at a number of ways other cities have dealt with this issue. Mr. Roland Danielson introduced himself and his son Scott, and said that U.S. Bench is a family business that has been in operation for 58 years. One hundred percent of the ownership is in attendance this evening. Their business has served Falcon Heights for 47 years. They provide insurance for their benches and Falcon Heights is covered with a $3 million policy. Their main desire is to work with the City so they will be in compliance and acceptable to the City of Falcon Heights. They work with many communities. Some communities require a special use permit. The Minneapolis City Council votes on every bench location. Saint Paul gives permission through the Public Works administrative system. State statute allows benches to be on State, County and City roads, provided the City permits them. The insurance aspect is very important. Maintenance is the biggest cost. They have several maintenance trucks on routes all the time. Many benches are hit by vehicles during bad weather. The benches provide a public service without public cost. They are very careful about who sponsors the benches. No liquor, no political, no law firm signage is permitted. They look at every sponsor. The community means a lot to them. Wells Fargo and U.S. Bank are the only two national businesses that they have contracts with; the rest are all local businesses. Council member Lamb asked how many of their benches are located in the City. Mr. Danielson said they have about six and they are located in the commercial and business areas. Council member Lindstrom asked how many municipalities in the Twin Cities ban bench advertising like Falcon Heights does. Mr. Danielson said that 80% of the communities do not on a courtesy bench. The opinion of a former State Attorney General is that courtesy benches are not advertising. Benches are treated differently. Council member Lindstrom said that he agrees it is a public service to have a bench but the advertising adds to the visual clutter of the street. He encouraged the City to look at this and see if the advertising can be toned down in some manner. Mr. Danielson said that the approach they are phasing in now is to just have advertising on the fronts of the benches. As the benches are replaced, the back ads do not go on. The benches are rugged and built for taking a lot of abuse. Income from the sponsors helps pay for that. IG FALCON HEIGHTS CITY COUNCIL MINUTES _3_ May 5, 2004 Consideration of enforcement action with regard to U S Bench (continued) Council member Talbot asked if they remove a bench if it is damaged, and Mr. Danielson said yes. Council member Talbot said that if a bus route changes, will they move the bench, including the pad, and Mr. Danielson said yes. The pad is constructed so that it can be removed very quickly. Council member Talbot asked if other cities have requirements regarding removal, and Mr. Danielson said yes. Council member Talbot asked if they shovel and weed whack around the benches, and Mr. Danielson said yes. Council member Kuettel said that if the company has an advertiser who has paid for the advertising on the back of a bench, are they waiting until the lease is up before removing the ad from the backside, and Mr. Danielson said yes. Mayor Gehrz said that she would support having the City take some time to look at this. That doesn't mean the City will come up with something that will allow them to stay but the City can control them. It is very important that the City move to some kind of a permit process. Businesses would need to approve placement of the benches in front of their businesses. Mr. Danielson said that some cities require that. She asked how site locations are determined. Mr. Danielson said that if they get a request, they work with the city or Metro Transit. There are • people who are pleased to have the benches put in. Drs. Akiva Pour-El and Thue Rasmussen, residents at 1666 Coffinan, spoke about the need for a bench by the front entrance of their condominium building. There are about 92 residents in their building and a lot of those people go, via bus, to the University or many other places of employment. Mayor Gehrz said that she had spoken with them earlier in the day. She asked if the condo association would object to having advertising on the front of the bench in front of their building. It does seem like a logical location for a bench because there are residents who have difficulty standing for long periods of time because of age. Dr. Rasmussen said that he believes final authorization is in the hands of the Architectural Integrity Committee and the Board of Directors. He thought that tasteful advertising might be acceptable. Placement of the bench would not detract greatly from the image of the building because there are bushes behind that area. Council member Kuettel asked if there has been thought given to the installation of an MTC bus shelter at 1666 Coffman. Dr. Rasmussen said they are not opposed to a shelter. The frequency of use would probably not be enough to justify the cost. A bench would be less expensive and more useful. Mr. Scott Danielson said there need to be 40-45 boardings per day in order to get an MTC bus shelter. They could take one of their lesser used benches and move it over to 1666 Coffinan. Mr. Brian Olson, 1592 Roselawn Avenue, asked if there are any other businesses in the metro • that put up benches with advertising and Mr. Danielson told him there are. 1'1 • FALCON HEIGHTS CITY COUNCIL MINUTES _4_ May 5, 2004 Consideration of enforcement action with regard to U S Bench (continued) Council member Talbot said the point is to lessen the visual clutter. When you come through Falcon Heights, it does get pastoral and bucolic. He agrees with Mayor Gehrz that this would be worth discussing in a workshop. He doesn't think that junking up the City with ads is the way to go. He has seen benches with memorials on them. He would be willing to lay this over for a time. Have a workshop. Get answers. He can envision a time when the City will have sturdy park benches. Administrator Worthington said that the company was given until May 11 to remove the benches. The City Council can delay enforcement of this date. Council member Lamb said that he thinks the City should take some time with this, but should have a date certain. Look at alternatives. In fairness to these people, they can't be expected to provide benches if there is no revenue stream. He is not prepared to make a decision tonight. i Look at this more extensively. Set some definite dates. The benches have been there a long time. The ordinance has been there a long time. We need to say the ordinance isn't really what we mean and repeal or modify it, or say it is what we mean and enforce it. Mayor Gehrz said that when the Council sets timeframes and limits, it must allow time to go through the Planning Commission process. City Administrator Worthington said that she would suggest no less than 90 days. Council member Lindstrom recommended a moratorium for about six months. This would allow enough time to research and go through the proper channels of the Planning Commission and would take it through the summer when the benches are used the most. Talbot moved that a moratorium of no more than six months be put in place with regard to the City's advertising code as it applies to bus benches. The City doesn't want any additional benches placed in the City, with the exception of a bench at 1666 Coffman. The Planning Commission will examine the ordinance as it specifically relates to advertising and bus benches and make recommendations to the City Council. The motion was unanimously approved. In response to a question from Mr. Brian Olson, Administrator Worthington said the ordinance banning advertising signs on benches has been in existence since 1985. Enforcement is complaint driven. A complaint was received from a resident and the City moved on it. 18 • FALCON HEIGHTS CITY COUNCIL MINUTES _5_ May 5, 2004 Consider amendment of Farmer's Market interim use permit Administrator Worthington said that last year, a Farmer's Market opened in the north parking lot of Twin City Cooperative Federal Credit Union at 2025 W. Larpenteur. The market, which operated Tuesday mornings from 8 a.m. to noon, June through October, was set up under an Interim User Permit (IUP). The Planning Commission, and then the Council, approved the necessary code amendments to (1) add a provision for IUP to the Code, (2) add "farmers' market" to the zoning definitions, and (3) add farmers' market as a legal interim use in the B-2 zones of Falcon Heights. The actual IUP, also approved by the Commission and the Council after several public meetings, gave specific conditions for operation of the St. Paul Farmer's Market at the TCCU site, with the term of one year. By all measures, the market was a resounding success. No complaints were received. Residents expressed universal approval of the way the market was conducted, the location, convenience and quality. The average turn- around time for each visitor was under ten minutes; many customers walked from nearby neighborhoods. While traffic was much heavier than usual on Prior, no serious problems were encountered. Parking was more than adequate. City staff did not observe that the parking lot was full at any time; anecdotal accounts from TCCU staff bear this out. • The Interim Use Permit was used last year so that the City Council and Planning Commission would have an opportunity to revisit and re-evaluate the situation each year. In the intervening year, there have been several changes in the parking situation that require an adjustment to the IUP as approved last year. TCCU staff drew the City's attention to some inaccuracies in the parking space count we used last year. They, and the City, used a site plan that showed an outdated striping of the parking lots. We now have a hand count of parking spaces actually available. The tc-tal count is 423 spaces. In the intervening year, the Credit Union has tried to assist the City by making available approximately 30 spaces in its parking lot for lease to non-residents commuting to the University of Minnesota. This has benefited the community by easing on-street parking on Garden Avenue, and now removes 30 spaces from the parking formerly availab:~e to market customers. The Credit Union is also supplying up to15 parking spaces for use by the construction workers at the SE Corner, reducing the available parking by that number. Including these two groups, the number of parking spaces required by TCCU for its business needs increased from 122 to 160, as shown in the IUP (115 employees and visitors, plus 30 plus 15). The market vendors will occupy the eastern three rows of parking stalls of the north parking lot, consisting of 75 spaces. Last year they were expected to occupy 4 rows, but the vendor area was expanded instead into the islands and driveways (blocked off) at the ends of the row. This was enough space for the vendors, so this number is reduced from 120 spaces to 75 (shown in the IUP). To improve traffic flow and safety, TCCU proposes to re-stripe the two southbound lanes of the parking lot to make all lanes northbound, so there will be one entry into and one exit out of the parking lot, at the south and north ends, respectively. This should substantially alleviate the • bottleneck at the main vehicle entrance this year. l9 • FALCON HEIGHTS CITY COUNCIL MINUTES _6_ May 5, 2004 Consider amendment of Farmer's Market interim use permit (continued) Administrator Worthington said that 10 parking spaces in the north lot will be lost due to the configuration of raised islands. Only 5 of these are in the customer parking rows, so this represents the loss of another 5 spaces, in exchange for improved traffic flow and safety. Subtracting the TCCU needs, the vendor area, and the re-striping loss from the total of 423 parking spaces, leaves a total of 183 spaces (down from 231 indicated on the 2003 IUP) for customers, as shown in the IUP. These parking stalls are located in the north parking lot, west of the vendor area, and in the west parking lot adjacent to Prior. It should be noted that this is the actual area that was used for parking during last year's market, and it was never observed to overflow. The real net change to this area is only the 5 spaces lost from re-striping. Overflow parking at City Hall (25+ spaces) is not included in any of the calculations for this year's IUP. However, it is still available, as needed. Staff is confident that the site will be able to bear the parking burden of the Farmer's Market this year, with the adjusted numbers given on the revised IUP. We want to make sure we are not requiring an unreasonable restriction on the TCCU property. The adjusted parking figures reflect real usage based on last year's experience, corrected parking stall counts, and a reasonable allowance for TCCU's business use on Farmer's Market days. At their regularly scheduled meeting on Apri127, the Planning Commission voted unanimously to recommend approval of the IUP to the City Council. Council member Lindstrom said that one resident showed up at the Planning Commission meeting and wanted to make sure the City approved the Interim Use Permit. Council member Kuettel said that if everyone agrees on this at the end of this season, perhaps the City could make this a Conditional Use Permit. Hermes will be joining the Farmer's Market. The St. Paul Farmer's Market has been very responsive. Twin Cities Co-op has been a great neighbor and most accommodating. They have reserved spots for students and have been great neighbors. Mayor Gehrz concurred and said that was going to be her suggestion too, particularly based upon the tremendously positive feedback from the community. Next year, the Planning Commission and staff can look at a Conditional Use Permit, which means the Farmer's Market could continue without having to go through the Planning Commission and City Council every year. ~o • FALCON HEIGHTS CITY COUNCIL MINUTES _~_ May 5, 2004 Consider amendment of Farmer's Market interim use permit (continued) Kuettel moved approval of the Interim Use Permit allowing a Farmer's Market, operated by the St. Paul Farmer's Market, at the Twin Cities Cooperative Federal Credit Union, 2025 West Larpenteur Avenue, Falcon Heights, with the conditions as outlined below. The motion was unanimously approved. INTERIM USE PERMIT Permit. Subject to the terms and conditions set forth herein, the City of Falcon Heights ("City") hereby grants an Interim Use Permit ("IUP") to allow a Farmer's Market at Twin Cities Cooperative Federal Credit Union, 2025 W. Larpenteur Avenue, Falcon Heights operated by the St. Paul Farmer's Market. 2. Subiect Property. The IUP is for that certain real property located in Ramsey County, Minnesota, commonly referred to as 2025 W. Larpenteur Avenue, Falcon Heights, MN and legally described as follows: The South 765 feet of the parcel of land which consists of the West 20 acres of the East half of the Southwest Quarter and the East 15 acres of the West half of the Southwest Quarter, all in Section 16, Township 29, Range 23 of Ramsey County, Minnesota; except the East 131 feet of the South 186 feet of said West 20 acres and except the West 60 feet of said East 15 acres (subject to roads and easements) And Except the South 765 feet of the part East of the West 60 feet and except the South 522 feet of the West 60 feet of the following described tract: The South 15 acres of West 20 acres of the East half of the Southwest Quarter and the East 15 acres of the West half of the Southwest Quarter (subject to roads and easements) in Section 16, Township 29, Range 23 of Ramsey County, Minnesota Conditions. The IUP is granted subject to the following conditions: ^ Market may only be open to the public between the hours of 8:00 a.m. to Noon local time on Tuesdays. ^ Set-up will begin no earlier than 6:30 a.m., and the market must be taken down and all vendors must have vacated the Location no later than 1:30 p.m. local time. ^ There may not be any sales prior to 8:00 a.m. ^ There may not be more than 60 selling stalls. ^ The Farmer's Market may be held on the Properly during the months of June through October. ^ The vendors may not occupy more than 75 parking places at the Location, for selling stalls and parking. ^ No fewer than 181 parking spaces must be available at the Location for customer parking. ^ Property owner must provide at least 160 parking spaces for its employees during the hours of the Farmer' Market, either at the Location or another location to be specified. ^ Vendors are responsible for leaving the area clean when they leave. s~ • FALCON HEIGHTS CITY COUNCIL MINUTES _g_ May 5, 2004 Consider amendment of Farmer's Market interim use permit (continued) ^ The Location and all adjoining land must be free of any trash or debris which results from the Market or is reasonably attributed to the Market. ^ Vendors will sell only what they grow or produce themselves. ^ Items for sale will be limited to fruit, vegetables, flowers and decorative plants, bedding plants, meat and dairy products, honey, baked goods, salsa, jams, preserves and similar products, all of which shall be subject to and must comply with applicable local, state and federal health and safety and food rules, regulations and laws, and the rules of the St. Paul Farmer's Market. ^ No sound amplification devices may be used during the Farmer's Market by the Market or by vendors. ^ The Property Owner's Director of Facilities will be the managing agent responsible for the conduct of the vendors in compliance with the conditions of the Interim Use Permit. ^ Use of the Location must be pursuant to a written agreement between the owner of the Location and the St. Paul Farmer's Market ^ The owner of the Location must make the St. Paul Farmer's Market aware of this Permit and require the St. Paul Farmer's Market to comply with all applicable terms and conditions of this Permit. • The owner of the Location shall be obligated to make sure that a policy or policies of insurance of the proper type, kind and amount are in place to cover any injuries or damages to individuals and property which may occur at, during or as a result of the operation of the Market at this Location. ^ Reasonable and appropriate measures must be taken to prevent unreasonable disturbance to adjacent properties, such as trash or debris finding its way onto the adjacent properties, and not being removed, or customers of the Market crossing over adjacent properties without permission of the owner. ^ The owner of the location shall take reasonable and appropriate measures to ensure that the St. Paul Farmer's Market does not disturb adjacent property owners with excessive noise. 4. Termination of Permit. The Permit shall terminate upon the occurrence of any of the following events, whichever first occurs. a. One year from the date of granting this permit. b. Violation of any of the conditions set forth herein. c. A change in the zoning ordinance which no longer allows the use. Recordin¢. This permit may be recorded against the title to the subject property. Consider approval of an ordinance amending Chapter 9 of the Falcon Hei htg_ s Cit~ode concerning vehicle sales Administrator Worthington said that during the last several years, staff has received numerous communications from residents concerned about the parking of cars for sale on the public right . of way, particularly along the two Snelling Avenue service drives. Typically, cars are parked by non-residents and identified as being for sale by signage inside the car. ~a FALCON HEIGHTS CITY COUNCIL MINUTES _9_ May 5, 2004 Consider annroval of an ordinance amending Chanter 9 of the Falcon Hei hts Cit, code concernm~ vehicle sales (continued) Ms. Pamela Harris, 1865 Snelling Avenue North, and Chairperson of the Planning Commission, said that she is one of the people who complained about this. She objects to having the public road used for the private purpose of selling used cars. The main problem is the safety issue. Also, it is not scenic or bucolic. She described the difficulties with night driving along the narrow service drives that are caused by the parked vehicles and motorcycles. The Planning Commission started by looking at an ordinance that covers the whole City. During the day these vehicles are a problem too. There are usually three cars involved: The cax for sale, the potential buyer's car and the seller's car. In response to a question from Council member Kuettel about the effect on residents, Administrator Worthington said the City issues temporary bags to cover the street signage for people who want to hold garage sales. Only a few residents request the bags. Council member Lindstrom said that when he first saw this he was envisioning the resident who has a used car for sale. He went up and down the frontage roads and saw it was a business. . They don't use little, for sale signs; they have big printed signs in the windshields with all the details. The frontage roads look like used car businesses. Council member Talbot said that as Code Enforcement Officer for Roseville he deals with this everyday. He drives by, notes the telephone numbers on the for sale signs, and calls the owners to tell them to move their vehicles because what they are doing is illegal and he also tells them about the high potential for vehicular vandalism or theft. He doesn't have a problem with banning the sale of vehicles in these high volume areas. He agrees with Council member Lindstrom. They are sophisticated and they are selling cars. Council member Lamb said that he doesn't have any problem with banning the commercial sale of cars. What about the resident who wants to sell their own car and they live on Larpenteur or Snelling? Planning Chair Harris said the original ordinance that was proposed was modified because there are areas where people don't have driveways because they have alleys. Council member Lamb said that he wants to find a way to ban the commercial sale of vehicles on City streets but doesn't want to be discriminatory toward the residents. Mayor Gehrz said that she was concerned about that also. Council member Lamb said the City will be creating two classes of streets: Snelling and its frontage roads, Larpenteur, Hamline, Fairview, Roselawn and Cleveland are one class, and the second class of streets is everything else. The thrust of the ordinance says that you can park in front of your house and that is legal. The ordinance is trying to address the six streets and do something different about them. ~3 • FALCON HEIGHTS CITY COUNCIL MINUTES -10- May 5, 2004 Consider approval of an ordinance amending Chapter 9 of the Falcon Heights Cit~ode concerning vehicle sales (continued) Council member Lamb recommended a change in the proposed ordinance amendment: Subsection 9-13.08, Vehicle Sales. Subdivision 1. Residential District. Eliminate the phrase "and parked entirely on a driveway". Administrator Worthington said that Larpenteur Avenue does not permit parking on either side except by the apartments east of Snelling. Mayor Gehrz recommended removing Larpenteur Avenue from the ordinance amendment because there is no permitted parking on Larpenteur, except in one area. Council member Talbot recommended rewording the phraseology "Vehicles that display a for sale sign" in both sections of the proposed ordinance amendment; otherwise people will simply list a contact phone number to get around the ordinance. Mr. Brian Olson, 1592 Roselawn, suggested the wording "vehicle owner". The vehicle has to be on his property, or, if an apartment dweller, it has to be adjacent to his building. There is a big issue with safety at night. You can't see the cars parked on the frontage road. He wouldn't mind seeing a ban on vehicular parking on the Snelling access drive altogether. Give special permits for garage sales. Mayor Gehrz described the process that people can go through if they want limited parking on a street. Council member Lamb recommended that advance notice about the new ordinance amendment be provided in the affected areas. Lindstrom moved adoption of the ordinance amending Chapter 9 of the Falcon Heights City code concerning vehicle sales, with the three changes that were recommended. The motion was unanimously approved. (Ordinance No. 2004-01 is outlined below.) ORDINANCE NO. 04-01 AN ORDINANCE AMENDING CHAPTER 9 OF THE FALCON HEIGHTS CITY CODE CONCERNING VEHICLE SALES THE CITY COUNCIL OF FALCON HEIGHTS ORDAINS: SECTION 1. Chapter 9 of the Falcon Heights City Code is amended by adding Section 9-13.08 to provide: 9-13.08 Vehicle Sales. Subdivision 1. Residential District. Motor vehicles and recreational vehicles which are permitted within the respective residential district may be advertised for sale and sold provided the vehicle is owned by the resident where the vehicle is parked and the vehicle is currently licensed and operable. Vehicles that are displayed for sale shall not be parked or stored on public property or the public rights of way on Snelling Avenue and its frontage roads, Hamline Avenue, Fairview Avenue, Roselawn Avenue and Cleveland Avenue. At no time shall any commercial vehicle be parked within a residential district and advertised for sale. ~4 • FALCON HEIGHTS CITY COUNCIL MINUTES -11- May 5, 2004 Consider approval of an ordinance amending Chanter 9 of the Falcon Hei htg s City code concerning vehicle sales (continued) Subdivision 2. Nonresidential District. Motor, commercial, and recreational vehicles shall not be displayed "for sale" or sold within nonresidential districts unless as part of an approved licensed sales dealership or for short term parking (12 hours or less) if the vehicle is owned by an employee of said business where the vehicle is parked with the consent of the business owner. SECTION 2. This ordinance shall be effective immediately upon its passage and publication. ADOPTED this 5th day of May, 2004, by the City Council of Falcon Heights, Minnesota. Planning Chair Harris said the Minnesota Street Road Association's annual weekend at the State Fairgrounds presents issues for her neighborhood. People park along the frontage roads, put chairs on their vehicles, have loud music and drink beer. They block the frontage roads so it is impossible for the residents. Administrator Worthington said that prior to the State Fair each year, the City restricts parking on particular streets in the City, and the Snelling Avenue frontage roads are included in this • action. The City could do this earlier, before the Minnesota Street Road Association`s Back to the 50's weekend on June 17-20. The general consensus of the Council was to instruct City staff to do an early installation of restricted parking signage before the MSRA Back to the 50's Weekend on June 17-20. The signage will remain in place until after the State Fair. Affected residents will be accommodated by the City as necessary. Award contract for Curtiss Field improvement project Administrator Worthington said the bid opening for the Curtiss Field improvement project was held earlier in the day. As part of the Municipal Agreement with MN DOT, the low bid contractor had to be approved by MN DOT before Falcon Heights could award the contract. Bids were received from two companies, as outlined below: 1. Jay Bros., Inc. $323,702.71 2. Environmental Assoc. $492,972.40 The engineer's construction cost estimate for this project was $357,546.00. The low bid from Jay Brothers, Inc. is approximately 9.5% below the engineer's estimate. The City will only be responsible for $238,825.40 of the total cost, and the balance will be covered by grants from MN DOT and draws against the City's MSA account, as well as the park dedication fee paid . by Sherman & Associates. MN DOT has reviewed the two bids and has approved the low bid from Jay Bros., Inc. as FALCON HEIGHTS CITY COUNCIL MINUTES -11- May 5, 2004 Consider approval of an ordinance amending Chanter 9 of the Falcon Hei hts City code concerning vehicle sales (continued) Subdivision 2. Nonresidential District. Motor, commercial, and recreational vehicles shall not be displayed "for sale" or sold within nonresidential districts unless as part of an approved licensed sales dealership or for short term parking (12 hours or less) if the vehicle is owned by an employee of said business where the vehicle is parked with the consent of the business owner. SECTION 2. This ordinance shall be effective immediately upon its passage. ADOPTED this 5th day of May, 2004, by the City Council of Falcon Heights, Minnesota. Planning Chair Harris said the Minnesota Street Road Association's annual weekend at the State Fairgrounds presents issues for her neighborhood. People park along the frontage roads, put chairs on their vehicles, have loud music and drink beer. They block the frontage roads so it is impossible for the residents. Administrator Worthington said that prior to the State Fair each year, the City restricts parking on particular streets in the City, and the Snelling Avenue frontage roads are included in this • action. The City could do this earlier, before the Minnesota Street Road Association`s Back to the 50's weekend on June 17-20. The general consensus of the Council was to instruct City staff to do an early installation of restricted parking signage before the MSRA Back to the 50's Weekend on June 17-20. The signage will remain in place until after the State Fair. Affected residents will be accommodated by the City as necessary. Award contract for Curtiss Field improvement project Administrator Worthington said the bid opening for the Curtiss Field improvement project was held earlier in the day. As part of the Municipal Agreement with MN DOT, the low bid contractor had to be approved by MN DOT before Falcon Heights could award the contract. Bids were received from two companies, as outlined below: 1. Jay Bros., Inc. $323,702.71 2. Environmental Assoc. $492,972.40 The engineer's construction cost estimate for this project was $357,546.00. The low bid from Jay Brothers, Inc. is approximately 9.5% below the engineer's estimate. The City will only be responsible for $238,825.40 of the total cost, and the balance will be covered by grants from MN DOT and draws against the City's MSA account, as well as the park dedication fee paid • by Sherman & Associates. MN DOT has reviewed the two bids and has approved the low bid from Jay Bros., Inc. ~G FALCON HEIGHTS CITY COUNCIL MINUTES _12_ May 5, 2004 RESOLUTION 2004-12 Lamb moved adoption of Resolution 2004-12 accepting the low bid from Jay Bros., Inc., in the amount of $323,702.71, for the Curtiss Field improvements. The motion was unanimously approved. REPORTS FROM COUNCIL MEMBERS: None INFORMATION AND ANNOUNCEMENTS: Administrator Worthington said that she will be out of the office at an MCMA conference from May 12-14. The regular City Council meeting was adjourned at 9:00 PM. Respectfully submitted, • Mary Shea Kodluboy Deputy Clerk ~~ • ITEM: Disbursements and Payroll SUBMITTED BY: Roland O.Olson, Finance Director CONSENT Gl 05/19/04 REVIEWED BY: Heather Worthington, City Administrator EXPLANATION: Summary 1. General Disbursements through May 14, 2004 in the Amount of: 2. Payroll (OS/01/04-05/15/04): ATTACHMENTS: • General Disburse n on pages ~~~ • Payroll on page -~~ ACTION REQUESTED: • Approval $ 113,096.58 $ 12,121.09 DATE 05/13/04 TIME 08:45 CITY OF FALCON HEIGH COUNCIL REPORT PAGE 1 APPROVAL OF BILLS PERIOD ENDING: 5-14-04 ~K# VENDOR NAME DESCRIPTION DEPT. AMOUNT KRISTIN GRANGAARD REFRESHMENTS CERT TNG -------- 72 .06 *** TOTAL FOR DEPT 00 72 .06 LILLIE SUBURBAN NEWSPAPER LEGALS LEGISLAT 7 .58 *** TOTAL FOR DEPT 11 7 .58 ICMA MGMT ASSOCIATION MEMBERSHIP/ HEATHER ADMINIST 501 .84 MCFOA MEMBERSHIP KODLUBOY ADMINIST 40 .00 43402 PERA PERA WITHHOLDINGS ADMINIST 1,411 .04 PERA PERA CHRGS-ANITA ADMINIST 407 .97 RAMSEY COUNTY MAY/04 INS ADMINIST 4,683 .59 RAMSEY COUNTY ABSTRACT FAX CHRGS ADMINIST 3 .00 *** TOTAL FOR DEPT 12 7,047 .44 KERN, DEWENTER, MERE LTD BALANCE OF AUDIT FEES FINANCE 2,500 .00 *** TOTAL FOR DEPT 13 2,500 .00 CAMPBELL KNUTSON APT/04 LEGAL FEES LEGAL 2,146 .00 *** TOTAL FOR DEPT 14 2,146. 00 43404 US BANCORP FLOWERS/DINGS GRAND OPEN COhIMUNIC 49 .95 ESCHELON TELECOM, INC. TELEPHONE REPAIR COMMUNIC 249 .18 CITY OF ROSEVILLE MAY/04 TECH SUPPORT COMMUNIC 725 .00 QWEST TELEPHONE COMMUNIC 590 .74 *** TOTAL FOR DEPT 16 1,614. 87 SBC PAGING PAGERS RENTALS EMERGENC 33 .46 *** TOTAL FOR DEPT 21 33. 46 ST ANTHONY VILLAGE JUNE/04 POLICE SVGS POLICE 38,585 .84 *** TOTAL FOR DEPT 22 38,585. 84 HUGHES & COSTELLO MAY/04 PROSECUTIONS PROSECUT 2,551. 50 *** TOTAL FOR DEPT 23 2,551. 50 AMERIPRIDE LINEN&APPAREL LINEN CLEANING FIRE FIG 158. 31 CAPITOL CITY MUTUAL AID 2004 MEMBERSHIP FIRE FIG 50. 00 GLENWOOD INGLEWOOD WATER/EQUIP RENT FIRE FIG 20. 33 HUFF,DALE FIRE TNG SCHOOL- HUFF FIRE FIG 250. 19 CLARKIN, MIKE REIMB FOR STOPWATCH FIRE FIG 6. 33 RAMSEY CTY PUBLIC WORKS OPTICOM SYSTEM MAINT FIRE FIG 54. 32 VERIZON WIRELESS CELL PHONE CHRGS FIRE FIG 21. 76 QWEST TELEPHONE FIRE FIG 163. 04 *** TOTAL FOR DEPT 24 724. 28 BROWNING-FERRIS IND. WASTE CHRGS APR/04 CITY HAL 276. 60 CINTAS CORPORATION #470 RUG SVC CITY HALL CITY HAL 30. 80 REGIONAL MUTUAL AID ASSOC 2004 DUES CITY HAL 10. 00 GLENWOOD INGLEWOOD WATER/EQUIP RENT CITY HAL 20. 32 GRAINGER, W. W., INC. PAPER TOWELS/BATHROOMS CITY HAL 112. 96 XCEL ENERGY GAS CITY HAL 166. 30 43403 SUBURBAN ACE HARDWARE DRILL BITS/FASTENERS CITY HAL 15. 73 3403 SUBURBAN ACE HARDWARE BATTERIES/LAWN SEED CITY HAL 49. 98 ~9 DATE 05/13/04 TIME 08:45 CITY OF FALCON HEIGH COUNCIL REPORT PAGE 2 APPROVAL OF BILLS PERIOD ENDING: 5-14-04 *CK# VENDOR NAME DESCRIPTION DEPT. AMOUNT -------- ------------------------- ------------------------ -------- ----------- *** TOTAL FOR DEPT 31 682.69 43404 US BANCORP CLOTHNG/PUBLIC WORKS STREETS 318.14 D-ROCK CENTER LANDSCAPE BLACK DIRT STREETS 19.70 XCEL ENERGY ELECT STREETS 653.10 XCEL ENERGY ELECT STREETS 67.93 XCEL ENERGY ELECT STREETS 7.41 XCEL ENERGY ELECT STREETS 59.05 XCEL ENERGY ELECT STREETS 9.50 XCEL ENERGY ELECT STREETS 82.91 XCEL ENERGY ELECT STREETS 7.41 XCEL ENERGY ELECT STREETS 1,775.52 XCEL ENERGY ELECT STREETS 7.96 43403 SUBURBAN ACE HARDWARE OIL DRI/FLEXIBLE SPOUT STREETS 25.09 *** TOTAL FOR DEPT 32 3,033.72 RAINBOW TREECARE TREE TRIMMING EXPENSES TREE PRO 365.00 *** TOTAL FOR DEPT 34 365.00 • INDEPENDENT SCHOOL 623 OPEN GYM-MARCH/04 PARK PRO 150.00 LILLIE SUBURBAN NEWSPAPER REC PROG EMPLOYMENT AD PARK PRO 75.00 *** TOTAL FOR DEPT 50 225.00 GALLS INCORPORATED SHEARS/GAUZE CCC/CERT 88.31 GALLS INCORPORATED CLOTH SURGICAL TAPE CCC/CERT 41.76 GEHRZ, SUE TAPE/ BATTERIES/SPACEPAC CCC/CERT 56.99 MTS SAFETY PRODUCTS INC HARDHATS/SAFETY VESTS CCC/CERT 682.38 *** TOTAL FOR DEPT 54 869.44 BROWNING-FERRIS IND. SOLID WASTE MGMT FEE SOLID WA 46.86 BROWNING-FERRIS IND. RAMSEY CTY CEC SOLID WA 146.09 E-Z RECYCLING, INC. MAY/04 RECYCLING SOLID WA 2,559.40 *** TOTAL FOR DEPT 56 2,752.35 EQUIPMENT SUPPLY INC FIRE HALL EXHAUST FAN FIRE & R 9,285.00 *** TOTAL FOR DEPT 64 9,285.00 NRG PROCESSING SOLUTONS EXCAVATION PLAY EQUIPMNT PUBLIC W 401.25 REED BUSINESS INFORMATION 3RD WEEK BID-CURTISFIELD PUBLIC W 116.51 VASKO ROLL-OFF SERVICE DISPOSAL OLD PLAY STRUCT PUBLIC W 580.00 *** TOTAL FOR DEPT 65 1,097.76 METROPOLITAN COUNCIL MAY/04 S.S. SANITARY 37,140.33 XCEL ENERGY ELECT SANITARY 15.73 QWEST AUTO DIALER TELEPHONE SANITARY 57.49 *** TOTAL FOR DEPT 75 37,213.55 . CAMPBELL KNUTSON APR/04 SE CORNER LEGALS COMM. DE 1,319.50 XCEL ENERGY ELECT PARK & R 20.79 XCEL ENERGY ELECT PARK & R 46.09 XCEL ENERGY ELECT/GAS PARK & R 333.86 43403 SUBURBAN ACE HARDWARE FERTILIZERS/PAINT SUPPLY PARK & R 98.64 *** TOTAL FOR DEPT 41 499.38 34 DATE 05/13/04 TIME 08:45 CITY OF FALCON HEIGH COUNCIL REPORT PAGE 3 APPROVAL OF BILLS PERIOD ENDING: 5-14-04 ~K# VENDOR NAME DESCRIPTION DEPT. AMOUNT -------- ------------------------- ------------------------ -------- ----------- MUSKA ELECTRIC SE CORNER/STREETLITEMOVE COMM. DE 470.16 *** TOTAL FOR DEPT 79 1,789.66 *** TOTAL FOR BANK O1 113,096.58 *** GRAND TOTAL *** 113,096.58 • 3~ PERIOD END DATE 05/15/04 **FILE NOT UPDATED** SYSTEM DATE 05/13/04 C H E C K R E G I S T E R HECK CHECK EMPLOYEE NAME YPE DATE NUMBER PAGE 1 CHECK CHECK NUMBER AMOUNT 5 13 04 34 CLEMENT KURHAJETZ 33603 143.85 5 13 04 40 KEVIN ANDERSON 33604 108.21 5 13 04 42 MICHAEL D CLARKIN 33605 182.06 5 13 04 66 ALFRED HERNANDEZ 33606 135.52 5 13 04 74 MARK J ALLEN 33607 104.81 5 13 04 85 DANIEL S JOHNSON-POWERS 33608 170.88 5 13 04 87 MICHAEL A MCKAY 33609 125.72 5 13 04 90 ANDREW P SCHIPPEL 33610 67.19 5 13 04 91 RICHARD H HINRICHS 33611 215.54 5 13 04 97 PATRICK GAFFNEY 33612 322.65 5 13 04 98 BRADLEY J. REZNY 33613 190.47 5 13 04 101 DALE E HUFF 33614 146.61 5 13 04 102 TIMOTHY B SYLVESTER 33615 111.96 5 13 04 103 LEE C GRIFFITH 33616 96.56 5 13 04 104 VINCENT A VANN 33617 135.98 5 13 04 1003 HEATHER WORTHINGTON 33620 1501.84 5 13 04 1007 PATRICIA PHILLIPS 33621 479.24 5 13 04 1013 WILLIAM MAERTZ 33622 1629.84 5 13 04 1030 MARY A. KODLUBOY 33623 1338.63 5 13 04 1033 DAVE TRETSVEN 33624 1050.35 5 13 04 1038 DEBORAH K JONES 33625 1202.30 5 13 04 1041 DANIEL S JOHNSON-POWERS 33626 59.10 5 13 04 1136 ROLAND O OLSON 33627 1371.61 5 13 04 1136 ANN E. DAVY 33628 279.51 5 13 04 1143 COLIN B CALLAHAN 33629 487.36 5 13 04 1144 ANITA TWAROSKI 33630 156.42 5 13 04 1169 JAY PAUL KURTIS 33631 277.32 5 13 04 2045 ANDREW P. SCHIPPEL 33632 29.56 COMPUTER CHECKS 12121.09 MANUAL CHECKS .00 NOTICES OF DEPOSIT .00 ****TOTALS**** 12121.09 3~ bank. Fire Star Service Guaranteed C ~~ May Statement for activiryfrom Apr. 07, 2004 throwgh May 05, 2004 Inquiries: 1-866-485-4545 rr~,. CITY OF FALCON HEIGHt ,HEATHER WORTHINGTON {CPN 000107109) BUS 134802 Page 1 of 2 Your VISA B1151M>~SS account att a glance .. Account: Activity Summary Credit and Payment Information Previous Balance ................................. $323.58 Credit. Line .........................:...:..................... Payments and Credits .... .......:......... $323.58 ' Available Credit....... ................................ Purchases, Advances& Other Debits: $368.09 Minimum Payment Due (Current Month}... FINANCE CHARGES ......., ................. $0.00 Minimum Payment Due (Past Due}........... New Balance ....................................... $368.09 Total New Minimum Payment Due.......... $5,000.00 $4,631.91 $10.00 $0.00 $10.00 Payment Due Date .................................... May 25, 2004 To reduce or avoid paying additional finance charges on your purchase balance, pay the total new balance of $368.09 by 05/25/04. Trans~ctlons ..Post Trans Ref. Date Date Nbr Description of Transaction Amount Notation Payments and Credits 04/19 3008 PAYMENT THANK YOU ......................................................... $323.58 CR ---------- Purchases, Advances, Debits 04/19 04/16 0306 HERMES FLORAL & GREENH 651-646-7135 MN ................ $49.95 ~uslne `:Slf~ecz~~ . 05/03 05/01 3489 LANDSENDBUSINESS 800-338-2000 WI ........................ $318.14 accyaj,~c Gt,~sb'~s _ tom pant' Approval (Thry area for use by your company} • _ _ - Signature/Approval: Accounting Code: ¢~At2 SUmrrt~ry Balance Avg, Daily ;: Daity Rate ~orresp ' ~*APR** Grade Balance Type $y Type ' Balance < Periodic Rate ' Type; fnteresf APR Thfs Pe7bd Pefiod 3 BALANCE TRANSFER $0.00 $0.00 0.031232% VARIABLE $0.00 11.40% 0.00% N PURCHASES $368.09 $0.00 0.031232% VARIABLE $0.00 11.40% 0.00% Y ADVANCES $0.00 $0.00 0,040821% VARIABLE $0.00 14.90% 0.00% N i„~,' J Continued on Next Page ~-( t Please detach and send coupon with payment. CPN OOOi07f09 Tank. Frn Saar Sctvfce Guatanurd For Cardmember Service please call: 1-866-485-4545 Every Hour! Every Day! CITY OF FALCON HEIGHT HEATHER WORTHINGTON 2077 LARPENTEUR AVE W FALCON HGTS MN 55113-5551 23111 UQ (~~r~n~~~nn~~n~~~n~~u~i~n~~~n~~~nu~~~nr~~n~~~~r~r~ Your Account !Number: Total New Balance: $368.09 Minimum Payment Due: $10.00 `Payment E1ue Data Er~terArttourlt atPayrteitit ~nciossd May 25, 2004 s ~ - t Please make check payable to: U.S. Bank U.S. Bank P.O. Box 790408 St Louis, MO 63179-0408 PLEASE DO NOT FOLD THIS COUPON. Please make sure U.S. Bank shows in the window. ITEM: SUBMITTED BY: REVIEWED BY: EXPLANATION: r~ L CONSENT G2 05/19/04 Approval of the restated and amended bylaws of the Fire Relief Association Falcon Heights Fire Relief Association Heather Worthington, City Administrator Roger Knutson, City Attorney Summary: The Fire Relief Association has updated their bylaws to conform with current State and Federal requirements and is asking for City Council review and approval. ATTACHMENT: • Appro a f t ~tated and amended bylaws of the Fire Relief Association on pages • ACTION REQUESTED: • Approval 34 ............................. r Restated Bylaws of ~ Falcon Heights Fire Department Relief Association Date of Restatement: Apri16, 2004 35 Article I -Name, Location and Purpose • Section 1.1. Name. The Name of this Association shall be Falcon Heights Fire Department Relief Association. Section 1.2. Location. The registered office of this Association shall be located at 2077 West Larpenteur Avenue, Falcon Heights, MN 55113. Section. 1.3. Purpose. This instrument constitutes the Bylaws of the Falcon Heights Fire Department, adopted for the purpose of regulating and managing the internal affairs of the corporation and shall serve as the written pension plan for the relief association. The Association is a governmental entity that receives and manages public money to provide retirement benefits for individuals providing the governmental services of firefighting. The objectives of the plan shall be to provide service pensions and ancillary benefits to members and dependants of the Falcon Heights Fire Department, hereinafter "Fire Department". All benefits issued by this association shall be governed by these bylaws and federal and state laws. Article II -Definitions and Active Services Provisions • In these Bylaws, unless otherwise provided, the following terms shall have the following meanings, for purpose of active service provisions, the provision shall be interpreted as a definition and as a plan operational requirement. Section 2.1. Active Service. The active performance of fire suppression duties or the supervision of fire suppression duties. The performance of suppression or supervision of fire suppression duties includes meeting the requirements of Fire Department Standard Operating Procedures and call attendance requirements contained therein. Annually, the fire chief shall submit a written certification to the board of trustees that shall certify members' active service. Such certification shall be required to be submitted for approval by the board of trustees, by January 30 of each year. Section 2.2. Beneficiary. Pursuant to Minn. Stat. §424A.05, the beneficiary under this plan, that is entitled to receive a benefit following the death of an active, disabled, deferred or early vested member. The benefit shall be paid to the following persons, in the following succession: 1. The surviving spouse, if no surviving spouse, 2. The surviving child or children in equal shares, and if no surviving child or children, 3. Any ancillary survivor's benefit shall be paid to the beneficiary identified in writing, on forms supplied by the Secretary, and if no beneficiary is identified, 3l, • 4. To the estate, as a funeral benefit. Section 2.3. Board of Trustees. The Board of Trustees of the Association as specified under Minn. Stat. §424A.04. There shall be three ex-officio members. The three ex officio trustees shall be the mayor, the city finance director, and the chief of the municipal fire department. Section 2.4. Break in Service. Breaks in Service. A minimum period of three consecutive months in which a member does not meet the minimum service requirements as stated in the Fire Department rules and regulations. A member shall not receive a contribution to his or her account for any year in which a break in service occurs. Section 2.5. Forfeiture. Forfeiture shall be defined as follows: 1. A member who resigns or retires from the Fire Department and has a vested service pension shall forfeit his or her right any forfeitable, non vested share of the pension. On January 1 of the year after the member has retired, the member's forfeited share shall be distributed among the active members pursuant to Minn. Stat. §424A.02, Subd.4. If such member should rejoin the fire department, the member shall not have a • right to the forfeited portion. 2. An active member who retires from the Fire Department, who has not met the minimum active service requirements to receive a defined contribution lump sum service pension, shall forfeit his or her account balance, as long as the member does not rejoin the fire department within five years of the date on which the member retired. If the member rejoins within the above-mentioned period, the member's account shall be reinstated. If the member does not rejoin within the above-mentioned period, the member's forfeited share shall be distributed among the active members pursuant to Minn. Stat. §424A.04. Section 2.6. Fiduciary Responsibility. In the discharge of their respective duties, the officers and trustees shall be held to the standard of care and all other statutory requirements enumerated in Minn. Stat. §356A et. seq. No trustee of the Association shall cause the relief association to engage in a transaction, if the fiduciary knows or should know that a transaction constitutes one of the following direct or indirect transactions. 1. sale or exchange or leasing of any real property between the relief association and a board member; • 3'~ 2. lending of money or other extension of credit between the relief • association and a board member or member of the relief association; 3. furnishing of goods, services, or facilities between the relief association and a board member; or 4. transfer to a board member, or use by or for the benefit of a board member, of any assets of the relief association. Transfer of assets does not mean the payment of relief association benefits or administrative expenses permitted by law. Section 2.7. Length of Service. For purposes of computing benefits or service pensions payable, a year of service shall be defined as a period of 12 complete months of active service, which need not be consecutive, on the Fire Department. No volunteer shall be given credit for a year of service unless that volunteer shall have completed an entire and complete year as an active volunteer member in good standing with the Fire Department. No volunteer shall be given credit for service during any periods of disability, medical leave, suspensions or department approved leaves of absence without specific and prior approval by the board of trustees. No portions or parts of years may be considered in determining the length of service for purposes of determining eligibility for benefits or amounts of benefits. Thus leaves of absence will affect total length of service in years but not necessarily the member's annual certification of service. • Section 2.8. Surviving Child or Children. An eligible child beneficiary (ies) of a deceased member is defined as follows: 1. A minor child, under the age of 18 who was a dependant of the deceased member and who did not have the status of being considered legally emancipated at the time of death or, 2. A child over the age of 18 but under the age of 23 who is enrolled as a full-time school at a public or private institution of higher education in apost-secondary education program. Section 2.9. Surviving spouse. The term "surviving spouse" means a spouse who was legally married to the member volunteer firefighter and remained such continuously after the marriage until death with at the time of death having pending an action for dissolution or legal separation, and who was residing with the firefighter at the time of the firefighter's death; no temporary absence for the purpose of business, health, or pleasure shall constitute a change of residence for these purposes. Section 2.10. Trustees. The individuals designated as such by Minn. Stat. §424A.04 and by virtue of elected office, those that qualify as the ex-officio trustee. Section 2.11. Year of Active Service. For purposes of computing benefits, service • pensions' payable or calculating vesting requirements, a year of service shall be defined ~8 as a period of 12 full months of active service in the Fire Department. Service pensions will be prorated monthly for fractional years of service pursuant to Minn. Stat. § 424A.02, Subd. 1. Section 2.12. Domestic Relations Order. Any judgment, decree or order (including approval of a property settlement agreement) that complies with the provisions of Minn. Stat. §§5518.58, 518.581, or 518.611. Section 2.13. Account. the record of the amounts credited to an individual under the plan, including amounts transferred from the defined benefit pension plan, plus contributions, forfeitures and investment income allocated under the plan. Section 2.14. Accounting date. December 31. Section 2.15. Contribution. The additions to the special fund from fire state aid and/or municipal contribution. Section 2.16. Plan Year. The twelve month period commencing on January 1 and ending December 31. Section 2.17. Valuation. A determination made by an investment manager, C.P.A., actuary or other professional as designated by the board. A valuation shall include a calculation that determines the fair market value of the total assets. The fair market value shall be determined based on the value at which the investments could be sold on an open • market. The board of trustees will determine the market value of any assets for which there is no readily determinable market value, upon consultation with the same designated professional. Where appropriate, the board of trustees shall have the discretion to use an independent appraiser to value the investments. The determination as to fair market value of investments shall not include selling those investments merely to determine their saleable value, and any transaction that shall result in churning of the account or other fraudulent activity, in order to conduct the valuation is prohibited. The professional shall not sell assets during the valuation process unless specifically directed to do so by the board. This definition also applies to the process of revaluing members' accounts and any other appropriate sections of these bylaws or activities of the board where assets or members' accounts are "valued". Article III -Membership Section 3.1. Eligibility for membership. All active members of the Falcon Heights Fire Department including probationary members except members of the PERA Police and Fire Fund who are eligible for regular salary or overtime salary during volunteer activity are eligible for membership in the Falcon Heights Fire Department Relief Association. Application for membership shall be made in writing on a form supplied by the Secretary of the Relief Association. The application shall be reviewed for compliance with state • statutory and plan requirements. If approved, the applicant shall be entered on the membership rolls 39 • Section 3.2. Classes of Membership. Members of this Association shall be classified in to three categories; active, deferred and disabled. Active members are those that have not been suspended or expelled from this Association. 2. Deferred members shall be those former members who have retired from the Falcon Heights Fire Department and who have had an active period or periods of service in the Falcon Heights Fire Department for 5 years, but who have not reached the age of 50, or receive payment for the service pension from their account. 3. Disabled Members are those former members that have been permanently disabled due to injury or sickness while an active member and are no longer in active service with the Falcon Heights Fire Department. Section 3.3. Expulsion. Any member may be expelled from this Relief Association for cause by atwo-thirds (2/3) vote of all members present at a regular or special meeting of the general membership. Cause for expulsion includes but is not limited to, failure to account for money belonging to the Association or feigning illness or injury for the purpose of defrauding the Association. The member shall have a right to a hearing before • a quorum of the Board of Trustees. Written notice via registered mail will be sent to the individual at least 15 days prior to the hearing. Article IV -Meetings and Elections of Officers Section 4.1. Annual Meeting of the Members. The annual meeting of the Association, for election of Association officers and two (2) Board Trustees shall be held on the first Tuesday in January each year. Written notice of the annual meeting shall be given to all members at least 7 days in advance. The place of the meeting shall be designated and may be changed from time to time by the Board of Trustees. Section 4.2. Regular Membership Meetings. The regular monthly meeting shall be held on the first Tuesday of each month. Section 4.3. Special meetings. Special meetings may be called by the President and Secretary in cases of emergency. Notice of all special meetings shall be given to all members and the object of the meeting stated in such notice. Section 4.4. Order of Business. At meetings, the order of business of the Association shall be: 1. Call to order • 2. Reading of minutes fi 4a 3. Report of the Treasurer 4. Unfinished business 5. New Business 6. Proposed Memberships 7. Reports of Special Committees 8. Reading of Reports and Minutes of Board of Trustees 9. Election of officers or trustees (annual meeting) Section 4.5 . Quorum at Membership Meetings. A majority of all active members in good standing of the Association constitute quorums of the transaction of business at annual, regular, and special meetings. Section 4.6. Quorum at Board of Trustee Meetings. A majority of members of the Board of Trustees shall constitute a quorum for the transaction of business at meetings. Section 4.7. Location of Board Meetings. A meeting of the Board of Trustees shall be held at the registered office of the Association in the City of Falcon Heights unless noticed of another place within the state as designated by the Board. Section 4.8. Notice. Subject to waiver, a notice of every meeting shall be sent or delivered by the Secretary to each trustee including ex-officio trustees, at least five (5), but not more than thirty (30) days, before the meeting, excluding the date of the meeting. Such notice shall set forth the date, time, place, and in case of a special meeting, the • purpose. Section 4.9. Open Meeting Law. The association is governed by Minn. Stat. § 13D.01 which requires that all meetings of the association be open to the public with rare exceptions. All notices provided for by this association shall comply with Minn. Stat. § 13D.04 which requires at a minimum that: 1. A schedule of regular meetings be kept on file at the association offices and, 2. For special meetings, a notice will be placed on the door of the meeting room, as the association has no principal location and no bulletin board in which to alert the public. Article V -Officers Section 5.1. President. It shall be the duty of the President to attend and preside at all meeting of this Association and the Board of Trustees. The President shall enforce the due observance of Minnesota State Statutes, the Articles of Incorporation and the Bylaws and see that officers properly perform the duties assigned to them. The president shall sign all checks issued by the Treasurer and all other papers requiring the President's signature. The President shall be a member of all committees and shall exercise careful • 41 supervision over the affairs of the Association. The President shall have other duties as • assigned from time to time by the Board of Trustees. Section 5.2. Vice-President. It shall be the duty of the Vice-President to perform the duties of the President in the President's absence. In the absence of both, it shall be the duty of the Association to appoint a President Pro-tempore, who shall perform the duties incident to the office. The Vice President shall have other duties as assigned from time to time to the Board of Trustees. Section 5.3. Secretary. It shall be the duty of the Secretary to keep a true and accurate record of the proceedings of all meetings of the Association and the board of trustees. The Secretary shall keep a correct record of all amendments, alternations and additions to the Constitution, Bylaws, or order of business in a separate book from the minutes of the Association. The Secretary shall cause a due notice of all special meetings of the Association and Board of Trustees. The Secretary shall keep a roll of membership, with date of joining, resignation, discharge, name of beneficiary in case of death, assessments paid and relief furnished. The Secretary shall, prior to entering upon the duties of office, give a bond in such sum and with such securities as may be required and approved by the Board of Trustees, conditioned upon the faithful discharge of the trusts and full performance of the duties of the office. The Secretary shall approve all checks issued by the Treasurer. The Secretary shall receive such salary as the Board of Trustees shall from time to time fix, subject to the approval of the Association. The Secretary shall prepare all paperwork and obtain required signatures for relief benefits due to the membership • and insure benefits are distributed to appropriate parties. The Secretary shall receive all monies due to the Association and pay the same over to the Treasurer, taking a receipt of the same, and failing to do so the Secretary may be impeached and expelled from the Association. The books of the Secretary shall be at all times open tot inspection by the Board of Trustees. The Secretary shall prepare and process all correspondence as needed. The Secretary shall sign all orders for payment issued to the Treasurer, and jointly with the Treasurer prepare and file all reports and statements required by laws. The Secretary shall have other duties as assigned from time to time by the Board of Trustees. Section 5.4. Treasurer. It shall be the duty of the Treasurer to receive all monies belonging to the Association and to hold them subject to the order of the President and countersigned by the Secretary and no others. The Treasurer shall keep separate and distinct accounts of all General and Special funds, and shall prepare and present to the Board of Trustees a full and detailed statement of the assets and liabilities of each fund and separately at each annual meeting of the Board of Trustees. The Treasurer shall deliver to the successor in office, or any committee appointed by the Board of Trustees to receive the same, all monies, books, papers, etc.., pertaining to the office immediately upon the expiration of term of office. Failing in his/her obligations, he/she may be impeached and expelled from the Association. The Treasurer shall, prior to entering upon the duties of office, give a bond in the sum and with such securities as may be required and approved by the City Council conditioned upon the faithful discharge of the • trusts and full performance of the duties of the office. The amount of the bond will be 8 ~a equal to at least ten percent (10%) of the assets of the Association; however, the amount of the bond need not exceed $500,000.00. ,Jointly with the Secretary, the Treasurer shall prepare and file all reports and statements required by law. The treasurer shall receive such a salary as the Board of Trustees shall from time to time fix subject to the approval of the Association. The Treasurer shall have other duties as assigned from time to time by the Board of Trustees. Article VI -Board of Trustees Section 6.1. The Board of Trustees shall consist of six (6) members elected by the membership -President, Vice President, Secretary, Treasurer, and two (2) Trustees -and three (3) ex-officio members consisting of the Fire Department Chief, Mayor and Finance Director. Section 6.2. Two Board members shall be elected for one (1) year terms at each annual meeting of the Association. A vacancy on the Board may be filled by the remaining Board members at any regular, or special meeting, shall hold office only until the next special or annual meeting of the Association membership when the successor shall be elected by the membership for the remainder of the term. • Section 6.3. Compensation. As compensation for services to the Association by the President, Secretary and Treasurer, the membership may at the Annual Association meeting authorize payment of an aggregate salary expense payable from the Special Fund to these officers. The Board shall then apportion that aggregate authorized amount to reflect the services respectively rendered by those officers during the prior yeax. All other Board members can receive a nominal fixed payment from the General Fund for each Board meeting attended. The amount shall be recommend by the Board to the membership and approved by the membership at their Annual Association meeting. Administrative expenses incurred by the Board members in fulfilling their administrative responsibilities shall be paid from the Special Fund. Article VII -Investments Section 7.1. Prudent Person. The Board of Trustees shall discharge their duties in good faith and with that diligence and care which an ordinarily prudent person would exercise under similar circumstances. Section 7.2. Investment Duties. It shall be the duty of the Board of Trustees to prepare modes and plans for the safe and profitable investment of the unappropriated funds of the • Association and whenever investments are made, to investigate and pass upon the 9 43 securities offered and to attend to the drawing and execution of necessary papers. The • Board shall order an audit of the books and accounts of the Secretary and the Treasurer annually, according to law, and shall submit a written report of the condition of the Association to the members at the annual meeting. The investment of the funds of the Association shall be in the exclusive control of the Board of Trustees, in conformance with state statutes, the bylaws, and the investment policy attached hereto. The Board of Trustees shall meet with the Investment Committee. The members of the Board shall act as Trustees with a fiduciary obligation to the State of Minnesota, to the City of Falcon Heights and the members of the Association. Section 7.3. Investment Committee. The Board of Trustees may designate two or more Association members to sit on an investment committee. The treasurer, the president and an ex-officio member shall sit on the committee. The investment committee shall investigate and make recommendations to the Board of suitable investments for Association funds among those permitted by Statute, the bylaws and the investment policy attached hereto. Section 7.4. Broker's Certification. The board of trustees shall comply with Minn. Stat. §356A.06, Subd. 8b that requires the relief association to provide annually to any brokers, a written statement of investment restrictions pursuant to statute or the investment policy that applies to the special fund. Upon receipt of the written statement of investment restrictions, each broker handling investments of the Association shall acknowledge, in writing annually the receipt of the investment restrictions. The • acknowledgment shall contain a statement of the broker's agreement to handle the Association's investments pursuant to the written restrictions. Section 7.5. Consultant Certificate of Insurance. Before hiring or contracting with a consultant, the Board of Trustees of the relief association must obtain a copy of the consultant's certificate of insurance. A consultant is an individual or firm providing legal or financial advice, including an actuary; attorney; accountant; investment advisor, manager, counselor, or investment manager selection consultant; pension benefit design advisor or consultant; or any other financial consultant. Section 7.6. Continuing Education Plan. The board of trustees shall develop and periodically revise a plan for continuing education for all members and officers of the board of trustees in order to ensure that trustees keep abreast of their fiduciary responsibilities as required by Minn. Stat. §356A.13. Article VIII - Funds Section 8.1. Funds. All monies received from the Association shall be kept in two separate funds as follows: ~~ 4y Section 8.2. General Fund. The funds received by the Association from dues, fines, • initiation fees and entertainment shall be kept in the general fund and may be disbursed upon a majority vote of the members of the Board of Trustees for any purpose reasonably suited to promote the welfare of the Association and its members. Section 8.3. Special Fund. All funds received by this Association qualifying as state aid received pursuant to law, all taxes levied by or other revenues received from the city pursuant to law providing for municipal support for the relief association, any monies or property donated, given, granted or devised excluding fundraiser proceeds, by any person which is specified for the use for the support of the Special Fund, and any interest earned on the assets of the Special Fund. Any tax sources and other money which may be directly donated or transferred to said fund, shall be kept in a separate account on the books of the Treasurer known as the Special Fund and shall be disbursed only for the following purposes. Payment of members' service pension benefits in accordance with these bylaws; 2. Payment of ancillary benefits in accordance with these bylaws; 3. Administrative expenses as limited by Minn. Stat. §69.80. • 4. Payments of dues to belong to membership associations. All other expenses of the Association shall be paid out of the General Fund. Section 8.4. Deposits. All money belonging to this Association shall be deposited to the credit of this Association in such banks, trust companies, savings and loan associations or other depositories as the Board of Trustees may designate. The board of trustees shall make deposits in conformance with state statute and the investment policy, attached hereto. Section 8.5. Disbursements. No disbursement of the funds of this Association shall be made except by checks drawn by the Treasurer and countersigned by the President or Vice President. Except when issued for salaries, pensions and other fixed charges, the exact amount of which has previously been determined by the Board of Trustees or the members, no check shall be issued until the claim to which it relates has been approved by the Board of Trustees. Article IX -Benefits 4S Section 9.1. Type of Benefit. The exclusive pension provided by the Association is a "defined contribution lump sum service pension" as defined in Minnesota Statutes, Section 424A.02, subdivision 4. Section 9.2. Service Pensions. Any volunteer firefighter who (1) has attained the age of fifty years, (2) has served ten or more years as a volunteer firefighter (3) has permanently separated from active service and (4) has ten or more years in good standing as a member of the association, shall be eligible to receive a lump payment of his or her account balance less any administrative fees or requisite deductions, at the time of his or her retirement and application for payment. The pension payment shall be paid to the member pursuant to Article X -Timing and Modes of Distribution. Section 9.3. Applications and purposes of pension provisions. The provisions of this article apply to individuals who are members of the Association and members of the Fire Department. An individual shall not be considered a member of the Association after receiving a lump sum distribution of his pension benefits or ancillary benefits, from the Association. Section 9.4. Eligibility to share in contributions. An individual shall be eligible to share in the contributions and forfeitures, if any, for the plan year only if the individual is credited at least one month of active and (a) is a member of that Plan Year or (b) terminated membership during the Plan Year for reasons other than death or disability. Section 9.5. Allocation of Contributions. 1. Allocation Rule. Contributions to be made to the special fund and forfeitures, if any, for a Plan Year shall be allocated among the individuals entitled to share in the contributions for such Plan Year under section 4, in the ratio that the months of service credited during such Plan year for each such individual bears to the Months of Service credited during such Plan Year for all such individuals. 2. Time of Making Allocations and Time of Funding. Allocations under sub- section (a) shall be made as of the accounting date, after each Account has been adjusted for gains or losses. The calculation of each Member's share of the Association's fiscal year and receipt by the Association of the audited financial report prepared by the Secretary and the Treasurer for that year. The Treasurer shall submit to the Trustees for approval that amount to be credited to each member's account. 3. Make-up contributions for omitted members. If, after the contribution for a Plan Year has been made and allocated, it should appear that, through oversight or a mistake of fact of law, a Member (or individual who should have been a member) who was entitled to share in such contribution received no allocation or received an allocation which was less than he should have received, the Trustees may, at their election, and in lieu of reallocating the prior contribution, make a special make-up contribution out of unallocated earnings for the Account of such member in an amount adequate to provide for him the same contribution for each Month of Service as would have been allocated to his Account if such oversight • or mistake had not been made. Unallocated earnings include any income of the 4~ Special Fund earned since the preceding accounting date that has not yet been • credited to the Member's account pursuant to Section 7 (a). Section 9.6. Individual Member's Accounts. Annual Reports. A member shall be entitled to inspect his or her account balance and transactions in the member's account by giving reasonable notice to the Treasurer, of the request. At least annually, (no later than the thirtieth of June), the Treasurer will provide each member with a written report of the member's account balance and vesting level as of the most recent accounting date and any account transactions (such as distributions), contributions and forfeitures) during the prior Plan Year. Section 9.7. Periodic Adjustment of Accounts and Forfeitures 1. Annual Adjustments. As of each accounting date, the account of each member, former member and beneficiary shall be revalued. As of each accounting date, the trustees shall value the assets of the special fund at their fair market value and determine the net investment gain or loss of such assets since the preceding accounting date. In determining the net investment gain or loss (1) the accrual basis of accounting shall be used (unrealized appreciation or depreciation shall be taken into account), and (2) contributions to the special fund and payments or distributions from the special fund to • provide benefits for members, former members and beneficiaries shall not be considered as gains or losses of the special fund. After the close of the plan year, the net investment gain or loss for said Plan Year shall be credited or debited, as of the accounting date for such Plan Year, to the respective accounts containing such assets and which are existing on said accounting date in proportion to the value of each such account on the preceding accounting date, but reduced by forfeitures or distributions from said account made during the plan year. The value of each account, as adjusted by the preceding provisions of this section, increased by contributions and forfeitures allocated to such account and reduced by distributions or forfeitures from such account for that Plan Year, shall be the value of said account on the accounting date for the plan year. 2. Adjustment on direction. A valuation of the special fund shall be made as of any other date specified by the Trustees, and this date shall be considered an accounting date. • Section 9.8. Benefit Eligibility. To be eligible to receive a service pension a member must meet all of the following requirements: 13 4'~ 1. Have retired from the fire department of the municipality and be permanently separate from active service; 2. Have completed at least 5 years of active service with such department before retirement; and 3. Have been a member of the Association in good standing at least 5 years prior to such retirement. Section 9.9. Application for Service Pension. All applications for pensions or deferred pension status shall be submitted to the Board of Trustees at a regular or special meeting of the Board. An application form will be provided by the Secretary of the Association containing the following information: 1. Age of the applicant. 2. Length of service the applicant has been a member of the Association. 3. Such other information as the Board of Trustees may require by including lawful requests for information or questions on an application form for benefits which has been adopted by the Board of Trustees. Application for benefits shall be made by or on behalf of the applicant within ninety (90) days prior to the date that the pension commences, and no pension benefits shall be paid for a period covering more than ninety (90) days before the application is made. Section 9.10. It shall be the duty of the Board to approve applications for service pensions if the applicant meets all of the eligibility requirements set forth in these bylaws. It shall also be the duty of the Board not to approve the application if any of the eligibility requirements are not met. If an application is not approved, the Board shall return the application to the applicant within thirty (30) days, noting thereon, with particularity, which requirements the applicant does not meet. Thereafter, the applicant shall be furnished with the opportunity to be heard by the full Board, within the next thirty (30) days, on the question of whether the applicant meets all of the eligibility requirements. If an application is not approved, the applicant may appeal and such appeal shall comply with Article XIV -Procedure for Review. If the application is approved, the service pension shall be paid as a service pension to such applicant. Section 9.11. Notice of Intent to Take Distribution. It shall be the duty of each member who intends to request a service pension from the association, to file a notice of intent to take distribution. Such notice shall be in writing and shall be filed the Secretary not less . than 3 months (90 days) prior to the date of submission of application for service pension. " 48 Upon receipt of a notice, the Secretary shall provide any notices as required by state or federal law and the application forms for service pension payments. Article X -Timing and Modes of Distribution Section 10.1. Expertise Should Be Sought. Because of the varying circumstances in each member's retirement planning, optional benefit payment methods are offered. Selection should occur after consultation with a tax consultant, insurance and/or estate planner, or an attorney. Alternate payment methods on the Application Form shall include. 1. Check. A single Lump sum check payment payable to the eligible retiree; or 2. Annuity. Lump Sum payment by the Association to a recognized insurance carrier licensed to do business in this state and approved for this product by the Commerce Commissioner under Minn. Stat. § 60A.40. 3. Rollover to IRA. Rollover to an IRA account pursuant to Section 10.2. • Section 10.2. Rollover Procedure. Upon written request from the retiring member who has given proper notice of retirement, the Secretary or Treasurer shall directly transfer the service pension amount into an Individual Retirement Account under Section 408(a) of the Internal Revenue Code, as amended. Article XI -Ancillary Benefits Section 11.1. Survivor Benefits. A member's Beneficiary shall be eligible to receive a benefit upon the death of a deferred, disabled, active, or retired Member who has not yet received his or her full retirement benefit. 1. Upon the death of an active member or disabled member who has not yet received his or her disability benefits, who is in good standing, the association shall pay to the member's benefit, the remaining full account balance as of the end of the year in which the member's death occurred. 2. In the event that the death occurs after the member has terminated or retired from the Fire Department, only the vested portion of the pension, as determined under Article XII -Early • Vesting shall be distributed. " 49 Section 11.2. Disabilit Benefits. A member who is ermanentl Y p y disabled from being an active firefighter on the Fire Department may be eligible for a disability benefit in lieu of retirement. Upon approval of the Board of Trustees pursuant to this section, the following disability benefits will apply. A member who is permanently disabled with a service-related disability incurred in the line of duty, shall be eligible to collect a disability benefit in an amount equal to his or her full account balance as of the end of the year in which the application for disability pension is made. The member shall be eligible to receive the disability benefit immediately upon approval of the Board of Trustees. No Further Benefits. Any such disability benefit paid in accordance with this section shall be in lieu of all rights to further service pension and survivor's benefit. 2. Disability defined. Disability is defined sustaining an injury or impairment, incurred in the line of duty, that results in the member's inability to engage in performance of his~her duties as a firefighter by reason of a medically determinable physical or psychological impairment that is certified by a physician, surgeon or chiropractor acceptable to the board of trustees, which can be expected to last for a continuous period of not less than twelve months or can be expected to result in death, that was incurred in the line of duty as a firefighter with the City of Falcon Heights. 3. Reports Required. No member shall be paid disability benefits except upon the written report of a physician, surgeon or chiropractor of the member's choice. This report shall set forth the diagnosis and prognosis of the disability, disease or injury of the member. Each such report shall be filed with the association. 4. Procedure. All applications for disability benefits shall be made within six months after such applicant has ceased to be an active member of the fire department. Written application shall be made to the Board setting out the nature and cause of such disability. This application shall be under oath by the member or his or her immediate family. The application shall be tabled until the next meeting so that the applicant maybe examined by a physician, surgeon or chiropractor of the member's choice. The physician, surgeon or chiropractor shall submit a written opinion concerning the diagnosis and prognosis of the applicant's disability and its probable duration of permanence. The Board of Trustees has the discretion to request that another doctor, selected by the board, examine the applicant. Final determination of disability will be based on the reports of at least one doctor and by a '° sa 2/3 majority vote of a quorum of the Board of Trustees present at the • subsequent association meeting. Proof Required. An applicant shall not be considered under a disability unless the member furnishes adequate proof of the existence thereof. An applicant's statement as to pain or other symptoms will not alone be conclusive evidence of disability as defined in this section. 6. Grievance Procedure. If the applicant for disability benefits feels the he/she has been aggrieved by any action of Board, the member shall, within sixty (60) days from notice of such action of the Board, file written objections and the reasons thereof with the Board and shall be allowed to appeal the determination pursuant to the Procedure for Review in these bylaws. Article XII -Early Vesting Provision Except as provided in section 2, in the event a member with five (5) years or more but less than twenty (20) years of active service on the Fire Department resigns or otherwise becomes a nonmember, that person shall be entitled to the following benefits that represents the nonforfeitable portion of: Completed Years of Service Nonforfeitable Percentage of Pension Amount 40 percent 6 44 percent 7 48 percent 8 52 percent 9 56 percent 10 60 percent 11 64 percent 12 68 percent 13 72 percent • 14 76 percent s~ • 15 80 percent 16 84 percent 17 88 percent 18 92 percent 19 96 percent 20 and thereafter 100 percent Section 12.2. In the event any member of the Falcon Heights Fire Department with at least five (5) years or more of active service on the Falcon Heights Fire Department resigns or otherwise becomes a nonmember, where that person was an active member of the Falcon Heights Fire Department at any time during the period from June 2, 1992 to November 4, 1997, that person shall be entitled to an unreduced service pension. The service pension may be paid when the retiring member meetings the minimum age requirement of Minnesota Statutes, Section 424A.02, Subdivision 1. • Article XIII -Deferred Pension Status Section 13.1. Deferred pension rolls. A member of the Association who has served as an active firefighter in the Fire Department for at least five (5) years, but has not reached the age of 50 years, may retire from said fire department and be placed on the deferred pension roll. Upon reaching the age of 50 years, and provided that membership in the Association has been maintained for at least five (5) years, upon approval of a valid written application therefor, such member shall be paid the base sum for each year of active service in said fire department as was payable at the time of retirement from active service in said fire department and reduced pursuant to the early vesting schedule in Article XII -Early Vesting. A member who is on the deferred pension roll shall not be eligible to receive any of the ancillary benefits provided for in these By-laws except those that are specified in section 3 of this article. Section 13.2. Interest Paid on Account Balance. Section 2. Interest paid. The association shall, annually, add to the deferred member's account, such interest, compounded annually, at an interest rate of 5%. Section 13.3. Valuation of Accounts. A deferred member's account balance shall be adjusted based on any valuation ordered by the board of trustees during or at year end. Accounts shall be assessed administrative fees and fund management fees in proportion to the member's account balance. Deferred members shall also share in the gains and 'a S~ losses to their account balances in proportion to their accounts balance in the same • manner as active members based on any valuation ordered by the Board of Trustees. Section 13.4. Survivor Benefits. If the member dies while on the deferred pension roll and that benefit is yet unpaid, the total deferred pension applicable at the time of death shall be paid to the member's beneficiary in accordance with Article XI -Ancillary benefits. Article XIV -Procedure for Review Section 14.1. Right to Appeal. In the event that the Board of Trustees denies an application for a service or ancillary pension benefit, the member shall be entitled to the right to appeal the determination. Section 14.2. Member Requirements. If an application is not approved, the board shall return the application to the applicant within 30 days, noting thereon, with particularity, which requirements the applicant does not meet. Thereafter, the applicant shall be furnished with the opportunity to be heard by the full board, on the question of whether the applicant meets all of the eligibility requirements. The member shall indicate that the member intends to appeal by furnishing the board with a written intent to appeal that is filed with the Secretary of the association within 30 days of receiving an adverse determination. The intent to appeal shall be certified, in writing, by the member. Section 14.3. Review of Appeal. Upon receipt of the written intent to appeal, the Board of Trustees shall hold a special meeting within 60 days of receipt of the written intent to appeal. Timely notice of the meeting shall be given to the member at least 15 days prior to the special meeting. The member shall have the reasonable opportunity to be heard by the Board of Trustees at the special meeting with regard to the negative determination. The board reserves the right to engage the services of a mediator or arbitrator, acceptable to both parties, at any time during the appeal. The mediator or arbitrator shall be selected from the Rule 114 Supreme Court Roster. The cost of the mediator or arbitrator shall be split in half among both parties. Article XV -Limits on Benefits Section 15.1. Domestic Relations Order. A domestic relations order shall be accepted by the plan administrator if in compliance with state and federal law. No benefits shall be paid under a domestic relations order which requires the plan to provide any type or form of benefit, or any option, not otherwise provided under the Plan or under state law. ~~ LJ '° S3 Section 15.2. Garnishment, judgment or legal process. No service pension or ancillary • benefits paid or payable from the special fund of a relief association to any person receiving or entitled to receive a service pension or ancillary benefits shall be subject to garnishment, judgment, execution, or other legal process, except as provided in Minn. Stat. §§518.58, 518.581, or 518.611. Section 15.3. Assignments. No person entitled to a service pension or ancillary benefits from the special fund of a relief association may assign any service pension or ancillary benefit payments, nor shall the association have the authority to recognize any assignment or pay over any sum which has been assigned. Section 15.4. Limitations on Ancillary Benefits. Following the receipt of a lump sum death benefit neither a member's surviving spouse nor estate is entitled to any other or further financial relief or benefits from the Association. Section 15.5. Limitations on Rejoining the Fire Department, and Thereby Rejoining the Association. All members who retire or otherwise separate from active service and are paid a benefit from the relief association are encouraged to consider and weigh their decision carefully prior to separation from service. Such separation will be considered permanent per state law. A member who has retired, and has taken his or her distribution, shall not be eligible for reinstatement as a member. In addition, pursuant to Minn. Stat. 424A.02, Subd. 9(b), the member shall not be eligible to accrue further active service and shall: • 1. Rea an ensions that have been aid to the s ecial fund p Y Y p p p of the association and such pension benefit amounts shall immediately be repaid, 2. The amount shall be repaid within sixty (60) days of reinstatement. The Association does not take responsibility for any penalties incurred on distribution options such as IRAs or cash payments due to the fact that distributed benefits must be repaid to the association. Article XVI -Amendments Section 16.1. Amendments. The Bylaws of this Association may be amended at any regular meeting by a vote oftwo-thirds (2/3) of the members present, provided that members present constitute a quorum and provided that notice of any proposed amendment shall be given by reading the same at a regular meeting next preceding that upon which such amendment is acted upon. A further stipulation pertaining to any change in the Bylaws relative to that purpose, amount or manner of disbursements, by the Association shall obtain the approval of a three-fifths (3/5) majority of the members of the City Council of the City of Falcon Heights. • '° S4 Section 16.2. Filing. The Bylaws of the Association shall be filed with the President and • Secretary and maybe inspected by any member of the Association upon request. A copy of the duties of the Board of Trustees will be furnished to each member of the Board. • SS CONSENT G3 • 05/19/04 ITEM: Appointment of new firefighters to the Fire Department SUBMITTED BY: Falcon Heights Fire Department REVIEWED BY: Clem Kurhajetz, Fire Chief EXPLANATION: Summary: The Fire Department has six new recruits. They are: Scott Tesch Jason Douvier Anton Fehrenbach Jonathan Stuart Michael Knox Marco Valdez ACTION REQUESTED: • • Appointment of the new firefighters • SL C7 • POLICY Hl 5/19/04 ITEM: 2003 CAFR Presentation SUBMITTED BY: Roland Olson, Finance Director REVIEWED BY: Heather Worthington, City Administrator EXPLANATION: Summary: Kern DeWenter Viere, Ltd. Will make its annual Comprehensive Annual Financial Report presentation for 2003. ATTACHMENTS: • 2003 CAFR included under separate cover • 2003 Management Summary included under separate cover ACTION REQUESTED: • Presentation • Questions from the Council and audience • Motion to accept 2003 CAFR ~h KERN•DEWENTER•VIERE March 4, 2004 Honorable Mayor and Council Members Heather Worthington, City Administrator Roland Olson, Finance Director City of Falcon Heights Falcon Heights, Minnesota The accompanying memorandum includes suggestions for improvement of accounting procedures and internal accounting control measures that came to our attention as a result of our audit of the financial statements of the City of Falcon Heights, Minnesota, for the year ended December 31, 2003. We considered the matters discussed herein during our audit and they do not modify the opinion expressed in our Independent Auditors' Report dated March 4, 2004, on such statements. In planning and performing our audit of the financial statements of the City of Falcon Heights, • Minnesota, for the year ended December 31, 2003, we considered its internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control. However, we noted a certain matter involving internal control and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely affect the City's ability to record, process, summarize and report on financial data consistent with the assertions of management in the financial statements. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees ui the normal course of performing their assigned functions. Our consideration of internal control would not necessarily disclose all matters in internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described is not believed to be a material weakness. • I~DV r~ • • KERN•DEWENTER•VIERE This report is intended solely for the information and use of the City Council and management. We would like to express our appreciation for the cooperation extended to us by the administration and employees of the City during our audit. KERN, DEWENTER, VIERS, LTD. Minneapolis, Minnesota 2 CITY OF FALCON HEIGHTS Ramsey County, Minnesota FINANCIAL ANALYSIS December 31, 2003 The following graphs are presented for discussion and analysis. The amounts used for the graphs are the fmal, audited amounts from the current and preceding four years. General Fund The first graph shows the change in the General Fund Balance over the last five years. Fund balance increased $ 76,750 during 2003 to end the year at $ 1,137,008. This amount represents ten months of expenditures for this Fund. Revenue exceeded expenditures during the year by $ 69,012. The graph on the following page shows the consistency with which revenues have exceeded expenditures in the General Fund over the past five years. General Fund Balance $1,400,000 $1,200,000 $1,000,000 $soo,ooo $600,000 $400,000 $200,000 $0 Reserved ^ Designated for Benefits ®Designated for Working Capital ^ Undesignated 1999 2000 2001 2002 2003 • • • • CITY OF FALCON HEIGHTS Ramsey County, Minnesota FINANCIAL ANALYSIS December 31, 2003 General Fund General Fund $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 • $200,000 $0 ^ Total Revenues ^ Total Ex enditures General Fund revenues decreased 6.2% from $ 1,500,458 in 2002 to $ 1,408,108 in 2003, primarily a result of a decrease in intergovernmental revenue. Expenditures increased $ 6,198 in 2003, but the actual General Fund expenditures for 2003 were under budget by $ 29,875. The excess in revenues over expenditures over the past five years has enabled the City Council to provide budgeted transfers to other funds that can not support operations, such as the Park Program Special Revenue Fund. The General Fund has also transferred funds to other funds for capital purchases. An analysis of revenue by source for the current and previous year is shown on the following two graphs on the next page. As presented in the pie charts, the sources of General Fund revenue have remained relatively stable. Property taxes and intergovernmental revenue (such as Market Value Credit and Local Government Aid) have made up approximately 80% of General Fund revenues each of the past two years. • 4 iyyy 2000 2001 2002 2003 CITY OF FALCON IiEIGIITS Ramsey County, Minnesota FINANCIAL ANALYSIS December 31, 2003 General Fund General Fund Revenues 2003 21% r-, _ T.. 7% - _. ~, 1 - ~' -_ - .~ ~- ter' ` 57% 5% ,.7 4%~ _ 6% General Property Taxes ®Licenses and Pemuts ^ Miscellaneous ^ Charges for Services ^ Fines and Forfeitures ^ Intergovernmental Revenue General Fund Revenues 2002 5% 52°i° General Property Taxes ^ Licenses and Permits ^ Miscellaneous ^ Charges for Services ^ Fines and Forfeitures ^ Inter ovemmental Revenue 3% 5% • • • CITY OF FALCON HEIGHTS Ramsey County, Minnesota FINANCIAL ANALYSIS December 31, 2003 General Fund The next graphs demonstrate that General Fund expenditures by department have remained relatively stable, as well. Public safety, consisting of both police and fire protection, has made up nearly 45% of the total General Fund expenditures each of the past two years. An analysis of expenditures by department for the current and previous year is shown on the following two graphs. General Fund Expenditures 2003 s% o% • 4S% D General Government ®Public Safety ^Public Works ^ Pazk and Recreation ^ Miscellaneous General Fund Expenditures 2002 7% 3% 43% ^ General Government ®Public Safety ^Public Works O Park and Recreation ®Miscellaneous 6 CITY OF FALCON HEIGHTS Ramsey County, Minnesota FINANCIAL ANALYSIS December 31, 2003 General Fund Overall, the healthy financial position of the General Fund can be attributed to conservative budgeting practices, which have maintained a steady revenue stream while keeping expenditures increases in check. This also has allowed the General Fund to financially assist other funds. Sanitary Sewer Fund Sanitary sewer revenue increased for the first time in several years, in part, due to increased usage at the University of Minnesota. The Fund posted operating income of $ 77,445 for the year, and net assets increased $ 104,320. Sanitary Sewer Fund s~oo,ooo $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 1999 2000 2001 2002 2003 ® Sewer Charges ®Total Operating Expenses ^ Depreciation ^ Operating Income/Loss With Depr O erating Income/Loss Without De r 7 • • • CITY OF FALCON HEIGHTS Ramsey County, Minnesota FINANCIAL ANALYSIS December 31, 2003 Debt Service Analysis Fund # 315 316 317 Tax Increment Tax Increment Improvement Refunding Refunding Bonds of Bonds of 1993 Bonds of 1996 1999 Principal to Maturity Interest to Maturity Total Debt Service to Maturity Fund Balance Deferred Assessment Principal • Total Available for Debt Service Estimated Excess (Deficit) Other Amounts Available: Tax Increment #1 Construction Fund Balance Tax Increment #2 Construction Fund Balance Future Improvements: Fund Balance Designated for Debt Service Total Other Amounts Available $ 90,000 $ 1,265,000 $ 1,085,000 4,703 287,222 173,316 $ 94,703 $ 1,552,222 $ 1,258,316 17,060 $ 394,354 $ 405,647 - 168,567 17,060 394,354 574,214 $ (77,643) $ (1,157,868) $ (684,102) $ - $ 596,429 $ - 84,769 - - - - 570,000 $ 84,769 $ 596,429 $ 570,000 This analysis does not include investment income or interest on deferred special assessments, as a conservative measure. No general tax levy revenue is assumed since the City has indicated it will likely not levy for debt service costs. Collections of tax increments have also not been included in this analysis, since it is difficult to estimate future market values and tax rates. • 8 CITY OF FALCON HEIGI~iTS Ramsey County, Minnesota • REPORTABLE CONDITION Year Ended December 31, 2003 Lack of Segregation of Accounting Duties During our audit we noted a condition which is considered to be a "reportable condition" as defined by standards established by the American Institute of Certified Public Accountants. During the year ended December 31, 2003, the City had a lack of segregation of accounting duties due to a limited number of office employees. Management is aware of this condition and has taken certain steps to compensate for the lack of segregation but due to the small staff needed to handle all of the accounting duties, the costs of obtaining desirable segregation of accounting duties can often exceed benefits which could be derived. However, the City Council and management must remain aware of this situation and should continually monitor the accounting system, including changes that occur. Although we consider this to be a reportable condition, we do not feel it is a material weakness. • 9 CITY OF FALCON HEIGHTS Ramsey County, Minnesota STATE STATUTE FINDINGS Year Ended December 31, 2003 Submit Outstanding Obligations Report to the County Minnesota Statutes 471.70 states a municipality must report on or before February 1 of each year to the County Auditor the total amount of outstanding obligations and the purposes for which they were issued as of December 31 of the preceding year. During our audit, we noted this report was not sent to the County Auditor prior to the February 1 deadline. We recommend future reports are filed in a timely manner to comply with Minnesota Statutes. Mileage Reimbursement/Automobile Allowance Minnesota Statutes 471.665, states that if the City has established an automobile allowance for any officer or employee, it must be in lieu of all other mileage reimbursement to that officer or employee. For the fiscal year ended December 31, 2003, the Citypaid an employee an automobile allowance and also paid mileage reimbursement for out-of--town trips. We recommend the City review and amend its mileage reimbursement and automobile allowance policies to ensure they comply with Minnesota Statutes. 10 t COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF FALCON HEIGHTS, MINNESOTA For the Year Ended December 31, 2003 .J Prepazed by THE DEPARTMENT OF FINANCE AND ADMII~ISTRATION Heather Worthington, City Administrator Roland Olson, Finance Director CITY OF FALCON HEIGHTS 2077 W. Larpenteur Avenue Falcon Heights, Minnesota 55113 • CITY OF FALCON HEIGHTS, MINNESOTA • TABLE OF CONTENTS INTRODUCTORY SECTION Elected Officials and Administration ............... ............................................................... Organization Chart .................................... ...................................................................... City Map ..................................................................... ..................................................... Letter of Transmittal ................................... ..................................................................... Certificate of Achievement for Excellence in Financial Reporting ................................. FINANCIAL SECTION Independent Auditors' Report ........................... ...................................... Management's Discussion and Analysis ~ ~ ~ ~ ~ ~ ~ ~ ~"""""""' ............................................ Basic Financial Statements: """"""""""""""' ,Government-wide Financial Statements: Statement of Net Assets ............... . ............................................................ Statement of Activities """""" ............................................................. Fund Financial Statements: ~~""""""""""""" Balance Sheet -Governmental Funds ...................... ........................................... econciliation of the Balance Sheet to the Statement of Net Assets - • Governmental Funds ....................... .................................................. Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ............................. ............................................................ Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities........ Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -General Fund .............. ..................................................... Budget and Actual -Community Development Special Revenue Fund........... Statement of Net Assets -Proprietary Funds ...................................................... Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds ....................... .............................................................. Statement of Cash Flows -Proprietary Funds .................................. Notes to the Financial Statements ~"~"""""""' ............................................................................. Required Supplementary Information ............. ................................................................ Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds....... Combining Statement of Revenues, Expenditures and Changes in Fund ' Balances - Nonmajor Governmental Funds ................................ ........................... Page 3 5 11 13 15 27 28 29 30 31 32 33 39 40 41 42 44 62 64 68 • CITE' OF FALCON HEIGHTS, MINNESOTA TABI..E OF CONTENTS Table Page FINANCIAL SECTION (CONTINUED) Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Parlc Programs Special Revenue Fund ....................................................................... 72 Water Special Revenue Fund ..................................................................................... 73 Citizen Corps Council/Community Emergency Response Term Grant Special Revenue Fund ......................................................................................................... 74 Solid Waste Special Revenue Fund ...............:........................................................... 75 Lawful Gambling Special Revenue Fund .................................................................. 76 Statement of Changes in Agency Fund Assets and Liabilities ........................................ 77 STATISTICAL SECTION Government-wide Expenses by Function ........................................................................ 1 79 Government-wide Revenues ............................................................................................ 2 80 General Governmental Expenditures by Function ........................................................... 3 81 General Governmental Revenues by Source ................................................................... 4 82 Property Tax Levies and Collections ............................................................................... 5 83 Assessed and Estimated Market Value of Property ......................................................... 6 84 Property Tax Rates and Tax Levies ................................................................................. 7 85 Principal Taxpayers and Employers ................................................................................ 8 86 Special Assessments Billings and Collections ................................................................ 9 87 Computation of Legal Debt Margin ................................................................................. 10 88 Ratio of Net General Obligation Bonded Debt to Tax Capacity and Net General Obligation Bonded Debt Per Capita ............................................................................. 11 89 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures .............................................................. 12 90 Computation of Direct and Overlapping Bonded Debt ................................................... 13 91 Demographic Statistics ..................................................................................................:. 14 92 Property Value, Construction and Bank Deposits ...........:............................................... 1~ 94 Schedule of Insurance in Force ........................................................................................ 16 94 Miscellaneous Statistics ................................................................................................... 17 95 • • • J Il~TTI20I)UCT®IZ1' SECTION .~ CITY OF FALCON IIEIGHTS, MINNESOTA ELECTED OFFICIALS AND ADMINISTRATION • December 31, 2003 Term of Elected Officials Position Office Expires Susan Gehrz Mayor December 31, 2007 Laura Kuettel Councilmember December 31, 2005 Robert Lamb Councilmember December 31, 2005 Peter Lindstrom Councilmember December 31, 2007 Richard Talbot Councilmember December 31, 2007 Administration Heather Worthington Roland Olson Bill Maertz Mary Kodluboy Deborah Jones Dave Tretsven Clem Kurhajetz City Administrator. Finance Director Parks and Public Works Director Deputy Clerk Zoning and Planning Coordinator Parks and Public Worlcs Maintenance Fire Chief • • 3 i. • • ~~ y F W ZU ~ •~ V m Q~ ~ ~ ~g ~ 3 O U 2 ~IT~' ®F' FAIJC®N I~IO.II'I'S,1~5O~A ®RGANIZATION CI3AR~' December 31, 2003 ~~ ~~ ~~ ~I 0 m N m c 4 V a Q ~ W ~ ~ ¢ W T W ~ W ~ u R G t~ 72 D 6 m u~ LL n N 4 M 'fAV IA )fM~71 CITY OF FALCON HEIGHTS, NIINNESOTA CITY MAP December 31, 2003 '~ ~~ ~ ~ ~ ~ .;~ ~ ~ ~. ~; ~~'~ ~~ ~~~ ;~ 1 mt -p..MC ® W z o~ ~Q v LL ~~ } i i r • • • 9 _~1 7NWY OIML17q 2077 W. LARPENTEUR AVENUE FALCON HEIGHTS, MN 55113-5594 PHONE (651) 644-5050 FAX (651) 644-8675 April 30, 2004 To the Mayor, City Council Members, and Citizens of the City of Falcon Heights: Minnesota Statutes require that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with U.S. generally accepted accounting principles (GAAP) and audited in accordance with U.S. generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of Falcon Heights for the fiscal year ended December 31, 2003. This report consists of management's representations concerning the finances of the City of Falcon Heights. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Falcon Heights has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Falcon Heights' financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Falcon Heights' comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Falcon Heights' financial statements have been audited by Kern, DeVJenter, Viere, Ltd., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Falcon Heights for the fiscal year ended December 31, 2003, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Falcon Heights' financial statements for the fiscal year ended December 31, 2003, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. ......~..,.~.....e HOME OF THE MINNESOTA STATE FAIR AND THE U OF M ST. PAUL CAMPUS 7 PRINTED ON RECYCLED PAPER TRLE CITY USA • • • GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with. it. The City of Falcon Heights' MD&A can be found immediately following the report of the independent auditors. PR®F1[~,E ®F 'I'gdE G~IVERNMENT' The City of Falcon Heights, incorporated in 1949, is located near the center of the Minneapolis and St. Paul metropolitan area, in the eastern part of the state. This area is considered to be the major population and economic growth area in the state, and one of the top economic growth areas in the country. The City of Falcon Heights currently occupies a land area of 2.28 square miles and serves a population of 5,600. The City of Falcon Heights is empowered to levy a property tax on both real and personal properties located within its boundaries. While it also is empowered by state statute to extend its corporate limits by annexation, Falcon Heights is a completely developed community and is bordered on all sides by other incorporated communities. The City of Falcon Heights has operated under the council/city administrator form of government since 1974. Policy-making and legislative authority are vested in a city council consisting of the mayor and four council members. The council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the city administrator. The city administrator is responsible for carrying out the policies and ordinances of the council, for overseeing the day-to-day operations of the city government, and for appointing the heads of the • various departments. The council is elected on anon-partisan basis. Council members serve four-year staggered terms, with two council members elected every two years. The mayor is elected:to serve afour-year term. The mayor and all four council members are elected at Iarge. The City of Falcon Heights provides a full range of services, including police and fire protection; the construction and maintenance of highways, streets, and other infrastructZU-e; water and sewer services; and recreational activities and cultural events. The annual budget serves as the foundation for the City of Falcon Heights' financial planning and control. All departments of the City of Falcon Heights are required to submit requests for appropriation to the city administrator during or before the second week in June each year. The city administrator uses these requests as the starting point for developing a proposed budget. ]:n August of each year the city staff submits to the cit3~ council a proposed operating budget for the fiscal year commencing the following January 1. The council is required to hold public hearings on the proposed budget and to adopt a final budget by no later than December ~ 1, the close of the City of Falcon Heights' fiscal year. The appropriated budget is prepared by fund, function (e.g., public safe T police). Trausfers of appropriations within or between departments regt~ur)e the speoial~approval of the city council. Budget-to-actual comparisons are provided in this report for the general fund and each special revenue fund. For the general fund, this comparison is presented on page 33 as part of the basic financial statements. The City had one major special revenue fund in 2003. This major special revenue fund was the Community Development Special Revenue Fund whose budget-to-actual statement is shown on page 39. The non-major special revenue funds' budget- . to-actual schedules are presented on pages 72-76. FACTORS AFFECTING FINANCIAL CONDITION • The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Falcon Heights operates. Local economy. The City of Falcon Heights is primarily a residential, inner-ring suburban communit3~ situated near the center of the Minneapolis and 5t. Paul metropolitan area. The economy of the City consists of retail, commerce, agricultural-related businesses, and institutional landowners, such as the University of Minnesota and the Minnesota State Fair. The City is at or near full development, with a 12.5% increase in the median taxable market value of property during 2003. Economic conditions have remained relatively stable with the University of Minnesota agricultural campus, Hermes Floral Company, Twin City Co-ops Federal Credit Union, and the Minnesota State Fairgrounds providing a diversified economic employment base. Long-term financial planning. The City of Falcon Heights is currently engaged in a major redevelopment project of the SE corner of the intersection of Snelling Avenue and Larpenteur Avenue. The existing, blighted, small shopping center is being redeveloped to include 56 senior apartments, 119 multi-family apartments, 14 town homes, and 12,000 square feet of retail space. This project has a projected completion date of 2005. This project is being developed by a private developer. Anew Tax Increment Financing District was established for this project. For the past 12 years, the City of Falcon Heights has been engaged in an aggressive plan of • reconstruction and improvement of its streets. Sheldon Avenue was upgraded during 2003 to replace curb and gutter. Ongoing maintenance activities will continue with yearly seal coating, curb/gutter repairs, and sidewalk replacement as needed throughout the City. MSA street funds will be utilized for all street maintenance activities. In addition, the water main on Folwell Avenue was replaced by the St. Paul Water Utility in cooperation with Falcon Heights during 2003. Cash management policies and practices. All temporary cash surpluses are pooled into an investment trust account. This pooled cash concept provides for investing greater amounts of money at favorable interest rates. The City's concept of a working fund for its cash permits some funds to be overdrawn and others to show cash balance when, in fact, the City has a positive cash balance. When funds are initially received, they are deposited into a money market checking account which represents operating cash. On a daily basis all funds are swept to an investment trust account; therefore, the City does not maintain a daily cash balance in depository accounts. Funds are invested in various money market instruments allowed by state statutes, such as U.S. Treasury bills and notes, general obligation municipals, certificates of deposit, repurchase agreements, federal agency notes, banker acceptances, and commercial paper. The maturities of the investments range from 1 day to 8 3/4 years, with an average maturity of 21 months. The average yield on all investments for 2003 was 2.51%. Investment earnings include appreciation on the fair value of investments. Increases in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments that the government intends to hold to maturity. • Risk management. The City of Falcon Heights is a member of the League of Minnesota Cities • Insurance Trust. This policy is renewable each year, at which time coverage and deductibles are reviewed to assure proper coverage. The CitS~ currently has a general liability policy of X1,000,000 with a deductible of $500 per occurrence. In addition, the City carries an excess liabilitypolicy with a $1,000,000 Iimit and a $10,000 deductible per occurrence. • AWaunS AND ACKN®W~,ED~EIVIEN'~'S The Government Finance Officers Association (GFOA} awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Falcon Heights for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2002. This was the thirteenth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized CAFR This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance and administration depar~.nent, as well as the auditing personnel of Kern, DeViTenter, Viere, Ltd. We would Iike to express our appreciation to all members of the department who assisted and contributed to the preparation of this report, and to the auditing firm for their professional assistance in preparing the Comprehensive Annual Financial Report for 2003. Credit also must be given to the mayor and the city council for their unfailing support for maintaining th,e highest standards of professionalism in the management of the City of Falcon Heights' finances. Respectfully submitted, ,~~ ' ~ Heather Worthington ~ ~~ ~ '" ~ City Administrator land Olson Finance Director 10 • ~ertiflcate ~of Achievement for Excellence in Frnane~al Reporting Presented.to City of falcon Heights, Minnesota. For its Cotnprehensive Annual .Financial Report .for-die Fiscal Yeai-'Ended December 31, 3002 A Certificate of'Achievement.for:Excellenee in.Finaneial Reporting<ispresented:by the GovemmentF.innnee Gfficers Assaciation of the Ltnited:Staiesand'Canadaao government units nnd,public employee retirement systems.whose-comprehensive aaaual.finattcial repons (CAFRs) achieve the'highest standards .in: government accountin g .anti financial reporting. ~~ ~ m ~~a)~ President ~~, .. ~~~~ ~~~ v Executive .D.irector 11 • I~DV • KERN • DEWEN'PER•VIERE INDEPENDENT AUDITORS' REPORT March 4, 2004 Honorable Mayor and Members of the City Council City of Falcon Heights Falcon Heights, Minnesota We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Falcon Heights, Minnesota, as of and for the year ended December 31, 2003, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is • to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes exa,,,;ning, on a test basis, evidence supporting the amounts and disclosures in the financial statements.. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Falcon Heights, Minnesota, as of December 31, 2003, and the respective changes in financial position and cash flows, where applicable, thereof and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. The Management's Discussion and Analysis on pages 15 through 25 and the information on the City's modified approach to infrastructure reporting on page 62 are not a required part of the basic financial statements but are supplemental information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted primarily of management inquiries regarding the methods of measurement and presentation of the supplemental information. However, we did not audit the information and express no opinion on it. • 13 KERN • DEWEN'rER•VIERE Our audit was performed for the purpose of forming an opinion on the financial statements that collectively comprise the City of Falcon Heights' basic financial statements. The accompanying supplementary information identified in the table of contents a.s combining and individual fund financial statements, schedules and supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a Whole. The information identified in the table of contents as the Introductory and Statistical Sections are presented fox purposes of additional analysis and are not a required part of the basic financial statements of the City of Falcon Heights, Minnesota. This information has not been subjected to any audit procedures and, accordingly, we express no opinion on it. KERN, DEWENTER, VIERS, LTD. . Minneapolis, Minnesota • 14 CITY OF FALCON HEIGHTS, NIINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 As management of the City of Falcon Heights, we offer readers of the City of Falcon Heights' financial statements this narrative overview and analysis of the financial activities of the City of Falcon Heights for the fiscal year ended December 31, 2003. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 7-10 of this report. All amounts, unless otherwise indicated, are expressed in dollars. FINANCIAL HIGHLIGHTS • The assets of the City of Falcon Heights exceeded its liabilities at the close of the most recent fiscal year by $ 12,214,461 (net assets). Of this amount, $ 5,998,371 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $ 133,250. • As of the close of the current fiscal year, the City of Falcon Heights' governmental funds reported combined ending fund balances of $ 5,261,741, a decrease of $ 328,650 in comparison with the prior year. Approximately 83% of this total amount, $ 4,388,472, is available for spending at the government's discretion (unreserved fund balance); the City has designated $ 3,994,496 of this amount for specific purposes. • • At the end of the current fiscal year, unreserved fund balance for the general fund was $ 1,08.0,800, or 81% of total general fund expenditures at 2003 levels. • The City of Falcon Heights' total debt decreased by $ 524,000 (17.6%) during the current fiscal year. This represents scheduled payments of the City's debt. During 2003, the City completely retired the improvement bonds of 1993. • During 2003, actual construction started on the maj or redevelopment of the SE corner of the intersection of Snelling Avenue and Larpenteur Avenue. This development includes 56 senior apartment units, 119 multi-family apartment units, 14 town homes and 12,000 square feet of retail space. The Metropolitan Council, a governmental agency of the State of Minnesota, awarded a $ 1,450,000 grant for this project. The Community Development Special Revenue Fund, a major fund for 2003, accounts for the financial activity of this project. This grant was used to help fund the purchase of the existing property and lease buy-outs of existing tenants and property owners. This project is projected to be completed in 2005. Overview of the Financial Statements -This discussion and analysis are intended to serve as an introduction to the City of Falcon Heights' basic financial statements. The City of Falcon Heights' basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. • 15 CITY OF FALCON HEIGHTS, NIINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 Government-wide Financial Statements -The government-wide financial statements are designed to provide readers with a broad overview of the City of Falcon Heights' finances, in a manner similar to aprivate-sector business. The statement of net assets presents information on all of the City of Falcon Heights' assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Falcon Heights is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Falcon Heights that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their • costs through user fees and charges (business-type activities). The governmental activities of the City of Falcon Heights include general government, public safety, public works, park and recreation and community development. The business-type activities of the City of Falcon Heights include sanitary sewer and storm drainage. The government-wide financial statements include only the City of Falcon Heights itself (lmown as the primary government). The City of Falcon Heights has no component units. The government-wide financial statements can be found on pages 27-28 of this report. Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Falcon Heights, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with fmance-related legal requirements. All of the funds of the City of Falcon Heights can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds -Governmental funds are used to account for essentially the same functions reported as governmental activities in the government=wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information maybe useful in evaluating a government's near-term financing requirements. • 16 CITY OF FALCON HEIGHTS, NIINNESOTA • MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Falcon Heights maintained nineteen individual governmental funds during 2003. Of these funds, five are major funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the community development special revenue fund, the improvement bonds of 1999 fund, the future improvements fund and the tax increment #2 construction capital projects fund all of which are considered to be major funds. Data from the other fourteen governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. In addition, individual fund schedules are presented on pages 72-76 for all non-major special revenue funds. The City of Falcon Heights adopts an annual appropriated budget for its general fund and all • special revenue funds. A budgetary comparison statement has been provided for the general fund and the major special revenue fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 29-39 of this report. Proprietary Funds -The City of Falcon Heights maintains one type of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Falcon Heights uses enterprise funds to account for its sanitary sewer and storm drainage. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary funds' financial statements provide separate information for the sanitary sewer and storm drainage, both of which are considered to be major funds of the City of Falcon Heights. The basic proprietary fund financial statements can be found on pages 40-43 of this report. Fidacciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Falcon Heights' own programs. During 2003, the City closed out its one fiduciary fund. • 17 • CITY OF FALCON HEIGHTS, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 Notes to the Financial Statements -The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 44-61 of this report. Other Information -The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the notes to the financial statements, along with statistical tables for the City. Combining and individual fund statements and schedules can be found on pages 66-77, and statistical tables on pages 78-94 of this report. Government-wide Financial Analysis - As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Falcon Heights, assets exceeded liabilities by $ 12,214,461 at the close of the most recent fiscal year. Forty-nine percent of the City of Falcon Heights' net assets are unrestricted. Another 37% reflects the City's investment in capital assets (e.g, land, buildings, machinery and equipment); less any related debt used to acquire those assets that is still outstanding. The City of Falcon Heights uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Falcon Heights' investment in its capital • assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Falcon Heights' Net Assets Governmental Business-type Activities Activities Total 2003 2002 2003 2002 2003 2002 Current and Other Assets $ 5,814,968 $ 6,028,853 $ 2,175,397 $ 2,065,711 $ 7,990,365 $ 8,094,564 Capital Assets 6,332,225 6,376,397 652,865 688,173 6,985,090 7,064,570 Total Assets 12,147,193 12,405,250 2,828,262 2,753,884 14,975,455 15,159,134 Long-tens Liabilities Outstanding 2,440,000 2,960,000 - 2,440,000 2,960,000 Other Liabilities 312,372 114,230 8,621 3,693 320,993 117,923 Total Liabilities 2,752,372 3,074,230 8,621 3,693 2,760,993 3,077,923 Net assets: Invested in capital assets, Net of Related Debt 3,892,225 3,416,397 652,865 688,173 4,545,090 4,104,570 Restricted 1,671,000 1,794,562 - - 1,671,000 1,794,562 Unrestricted 3,831,596 4,120,061 2,166,775 2,062,018 5,998,371 6,182,079 Total Other Amounts Available $ 9.394.821 $ 9,331,020 $ 2.819,640 $ 2,750,191 $ 12.214;461 $ 12,081,211 • 18 CITY OF FALCON HEIGHTS, NIINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 A portion of the City of Falcon Heights' net assets (14%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($ 6,123,371) maybe used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Falcon Heights is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. Governmental Activities. Governmental activities increased the City of Falcon Heights' net assets by $ 63,801, thereby accounting for 48% of the total growth in the net assets of the City of Falcon Heights. Key elements of this increase are as follows: City of Falcon Heights' Changes in Net Assets Revenues: Program Revenues: Charges for Services Operating grants and Contributions Capital Grants and Contributions General Revenues: Property Taxes Other Investment Earnings Total Revenues Expenses: General Government Public Safety Public Works Parlc and Recreation Community Development Interest on Lono term Debt Sanitary Sewer Storm Drainage Total Expenses Increase in Net Assets Net Assets -Beginning Total Other Amounts Available Govcmrrrental Business-type Activities Activities Total 2003 2002 2003 2002 2003 2002 $ 357,170 $ 331,947 $ 558,068 $ 530,233 $ 915,238 $ 862,180 1,735,962 95,728 - - 1,735,962 95,728 62,468 100,683 - - 62,468 100,683 811,027 774,417 - - 811,027 774,417 379,352 494,245 - - 379,352 494,245 127,284 242,737 40,636 82,027 167,920 324,764 3,473,263 2,039,757 598,704 612,260 4,071,967 2,652,017 258,839 435,944 - - 258,839 435,944 662,483 631,861 - - 662,483 631,861 7I 1,365 332,312 - - 711,365 332,312 186,021 203,540 - - 186,021 203,540 1,470,090 - - - 1,470,090 - 120,664 145,257 - - 120,664 145,257 - 450,704 440,039 450,704 440,039 - - 78,551 48,602 78,551 48,602 3,409,462 1,748,914 529,255 488,641 3,938,717 2,237,555 63,801 290,843 69,449 123,619 133,250 414,462 9,331.020 9,040,177 2,750,191 2,626,572 12,081:11 11,666,749 $ 9,394,821 $ 9,331,020 $ 2.819,640 $ 2,750,191 $ 12.214.461 $ 12,081.211 ,~ • • 19 • CITY OF FALCON HEIGHTS, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 The property tax levy for the City's operational needs increased $ 22,738 (2.7%) during the year. In addition, the State of Minnesota reduced the Local Government Aid (LGA) to the City by $ 101,190. Below are specific graphs, which provide comparisons of the governmental activities revenues and expenditures. Expenses and Program Revenues -Governmental Activities 2,000,000 1,7so,ooo 1,500,000 1,250,000 1,000,000 • 750,000 500,000 250,000 0 Revenues by Source -Governmental Activities Unrestricted Investment Other General Revenues Earnings Charges for Services 11% 4% 10% • Property Taxes 23 Capital Gran Contributions 2% ing Grants and contributions 50% 2C General Public SafetyPublic Works Park and Community Interest on Government Recreation Development Long-term Debt CITY OF FALCON HEIGHTS, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS • December 31, 2003 Business-type activities. Business-type activities increased the City of Falcon Heights' net assets by $ 69,449, accounting for 16% of the total growth in the government's net assets. Key elements of this increase are as follows. Expenses and Program Revenues -Business-type Activities 600,000 500,000 400,000 300,000 200,000 100,000 Revenues by Source -Business-type Activities Unrestricted Investment Earnings ~~ ._ Charges for Services 93% • • 21 Sanitary Sewer storm drainage • CITY OF FALCON HEIGHTS, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City of Falcon Heights uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds -The focus of the City of Falcon Heights' governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City of Falcon Heights' financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal yeaz. As of the end of the current fiscal yeaz, the City of Falcon Heights' governmental funds reported combined ending fund balances of $ 5,261,741, a decrease of $ 328,650 in comparison with the prior year. Approximately 83% of the total amount $ 4,513,472, constitutes unreserved fund balance, which is available for spending at the government's discretion. The remainder of fiand balance is reserved to indicate that it is not available for new spending because it has already been committed 1) to pay debt service ($ 817,061), or 2) to pay various prepaid expenditures in the general fund ($ 56,208). • The general fund is the chief operating fund of the City of Falcon Heights. At the end of the current fiscal year, unreserved fund balance of the general fund was $ 1,080,800, while total fund balance reached $ 1,137,008. As a measure of the general fund's liquidity, it maybe useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 81 % of total general fund expenditures, while total fund balance represents 85% of that same amount. The fund balance of the City of Falcon Heights' general fund increased by $ 76,750 during the current fiscal year. Key factors in this increase are: • A $ 37,490 increase in licenses and permits over budgeted amounts was primarily due to residential improvements in property throughout the City and the start of the City's housing redevelopment. • A $ 10,869 refund on insurance premiums from the League of Minnesota Cities self insured insurance plan representing savings passed back to the member cities. • A $ 17,564 increase in fines and forfeits over budgeted amounts. The major debt service fund (Improvement Bonds of 1999) has a total fund balance of $ 405,647, all of which is reserved for the payment of debt service. The net increase in fund balance during the current year in this debt service fund was $ 265,987. During the year, the City paid off its 1991 Improvement Bonds and the remaining fund balance was transferred to the 1999 • Improvement Bonds. This was a net increase over and above the current year debt service payments. ?~ CITY OF FALCON HEIGHTS, NIINNESOTA • MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 Proprietary Funds -The City of Falcon Heights' proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets of the sanitary sewer fund at the end of the year amounted to $ 1,519,259, and those for the storm drainage fund amounted to $ 647,516. The total growth in net assets for the sanitary sewer fund was $ 104,320; however, the storm drainage fund experienced a decrease of $ 34,871. The total net asset increase combining all proprietary funds was $ 69,449. Other factors concerning the finances of these two funds have akeady been addressed in the discussion of the City of Falcon Heights' business-type activities. GENERAL FUND BUDGETARY HIGHLIGHTS A reclassification was made in the general fund budget to reflect expenditures made in the fund rather than being transferred to another fund to be spent. During the year, the revenues exceeded budgetary estimates and the actual expenditures were less than the budgetary estimates. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets -The City of Falcon Heights' investment in capital assets for its governmental • and business-type activities as of December 31, 2003, amounts to $ 6,985,090 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system, improvements other than buildings, machinery and equipment and infrastructure. More detail is available on page 24. The City has elected to use the "Modified Approach" as defined by Governmental Accounting Standards Board (GASB) Statement No. 34 for infrastructure reporting of its streets and alleys. The software program MicroPAVER, which is developed and supported by the US Army Corps of Engineers as a tool of pavement management, will be used to inventory and rate the quality of the pavement on all sections of streets and alleys within the City. MicroPAVER surveys the pavement segments of the City and assigns a Pavement Condition Index (PCI) rating to each. The following scale set up by the City determines a schedule of maintenance, rehabilitation and reconstruction for pavement segments: 100 to 80 ~ Excellent, 79 to 50 ~ Good, 49 to 30 -~ Fair, and 29 to 0 -~ Failed. The goal of the City is to maintain an overall PCI rating above 70. The weighted average of the City's PCI for 2001 was 88, which denotes that the City's streets are in "excellent" condition. This PCI rating demonstrates the City's aggressive pavement rehabilitation and reconstruction efforts. The next rating will be completed in 2004. No major capital asset events occurred during 2003. We did, however, resurface and replace curb and gutter on one of the local streets. This street was one block in length. • 23 • CITY OF FALCON HEIGHTS, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 City of Falcon Heights' Capital Assets (Net of Depreciation) Governmental Business-type Activities Activities Total 2003 2002 2003 2002 2003 2002 Land $ 419,707 $ 416,707 $ - $ - $ 419,707 $ 416,707 Building and System 665,806 700,903 652,865 688,173 1,318,671 1,389,076 Improvements Other than Buildings 16,264 19,569 - - 16,264 19,569 Machinery and Equipment 527,387 536,157 - - 527,387 536,157 Infrastructure 4,703,061 4,703,061 - - 4,703,061 4,703,061 Total $ 6,332,225 $ 6,376,397 $ 652,865 $ 688,173 $ 6,985,090 $ 7,064,570 Additional information on the City of Falcon Heights' capital assets can be found in note 3C on pages 54-55 of this report. Long-term Debt - At the end of the current fiscal year, the City of Falcon Heights had total • bonded debt outstanding of $ 2,440,000. This amount decreased by $ 520,000 or 17.6% during the 2003 fiscal year, which represented scheduled bond payments. There were no new bonds issued in 2003. City of Falcon Heights' Outstanding Debt General Obligation and Revenue Bonds U General Obligation Bonds Genera] Obligation Tax Increment Financing Bonds Total Governmental Business-type Activities Activities Tota] 2003 2002 2003 2002 2003 2002 $ 1,085,000 $ 1,470,000 $ - $ - $ 1,085,000 $ 1,470,000 1,355,000 1,490,000 - - 1,355,000 1,490,000 $ 2,440,000 $ 2,960,000 $ - $ - $ 2,440,000 $ 2.960,000 The City of Falcon Heights maintains an "A-1"rating from Moody's on all of its general obligation debt. State statutes Limit the amount of general obligation debt a governmental entity may issue to a percentage of its total assessed valuation. The current debt limitation for the City of Falcon Heights is $ 5,393,592, which is in excess of the City of Falcon Heights' outstanding general obligation debt. Additional information on the City of Falcon Heights' long terra debt can be found in note 3E on pages 56-57 of this report. 24 CITY OF FALCON HEIGHTS, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS • December 31, 2003 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The unemployment rate for Ramsey County in which the City of Falcon Heights resides, is currently 4.4%, which is an increase from a rate of 4.2% a year ago. This compares favorably to the state's average unemployment rate of 4.9% and the national average rate of 5.4%. Inflationary trends in the region compare favorably to national indices. All of these factors were considered in preparing the City of Falcon Heights' budget for the 2004 fiscal year. During the current fiscal year, unreserved fiznd balance in the general fund increased to $ 1,080,800. The City of Falcon Heights has designated $ 686,824 of this amount for working capital to aid in cash flow related to 2004 general fund expenditures. REQUESTS FOR INFORMATION This fmancial report is designed to provide a general overview of the City of Falcon Heights' finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, 2077 W. Larpenteur Ave., City of Falcon • Heights, MN 55113. 25 CITY OF FALCON HEIGHTS, MINNESOTA • Total STATEMENT OF NET ASSETS December 31, 2003 ASSETS: Cash and Investments (Including Cash Equivalents) Receivables: Accounts Receivable Interest Receivable Taxes Receivable Special Assessments Due from Other Governments Prepaid Items Capital Assets (Net of Accumulated Depreciation): Land Buildings and System Improvements Other Than Buildings Machinery and Equipment Infrastructure Total Assets Governmental Activities Business-type Activities LIABILITIES: Accounts Payable Contracts Payable Escrow Deposits Bond Interest Payable Due to Other Governments Compensated Absences Noncurrent Liabilities: Due Within One Year Due in More Than One Year Total Liabilities NET ASSETS: Invested in Capital Assets, Net of Related Debt Restricted for: Debt Service Tax Increment Unrestricted $ 5,220,905 $ 2,012,817 $ 7,233,722 10,955 103,883 114,838 26,183 18,437 44,620 4,841 - 4,841 323,297 - 323,297 172,579 - 172,579 56,208 40,260 96,468 419,707 - 419,707 665,806 652,865 1,318,671 16,264 - 16,264 527,387 - 527,387 4,703,061 - 4,703,061 12,147,193 2,828,262 14,975,455 84,974 4,570 89,544 10,538 - 10,538 125,000 - 125,000 47,496 - 47,496 1,005 - 1,005 43,359 4,051 47,410 280,000 - 280,000 2,160,000 - 2,160,000 2,752,372 8,621 2,760,993 3,892,225 652,865 4,545,090 985,628 - 985,628 685,372 - 685,372 3,831,596 2,166,775 5,998,371 • Total Net Assets $ 9,394,821 $ 2,819,640 $ 12.214,461 • The notes to the financial statements are an integral part of this statement. ~ 7 • Q F O ~*, v~ o N z w i ~' ~I r i i ~^ [~ M ,~ ~, a~ .a ~ H ~ ~ x U ~ ~ • W O b a~ ~ ~W U ,~ ~ H ~ w ~ ~ C w Fes! 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N 4.y O ap .~ y w '"".~. O ~+_ m 0 H W N CITY OF FALCON HEIGHTS, MINNESOTA GOVERNMENTAL FUNDS BALANCE SHEET December 31, 2003 ASSETS: Cash and Investments (Including Cash Equivalents) Taxes Receivable -Delinquent 5pecia] Assessments Receivable: Deferred Accounts Receivable Interest Receivable Due from OUter Governments Due from Other Funds Prepaid Items Total Assets LIABILITIES AND FUND BALANCES: Liabilities: Accounts Payable Contracts Payable Escrow Deposits Due to Other Governments Due to Other Funds Deferred Revenue Compensated Absences Total Liabilities Fund Balances: Reserved for Prepaid Items Reserved for Debt Service Unreserved, Reported in: General Fund - Designated General Fund - Undesigoated Special Revenue Funds - Desi},mated Capital Projects Funds - Designatedfor: Debt Service Construction Total Fund Balances Total Liabilities and Fund Balances r The notes to the financial statements are an inte~~ral part of this statement. ~~ • Special Debt Service Capital Other Total Governmental Revenue Improvement Proiects Community Bonds of Future Tax Increment Governmental Funds General Development 1999 Improvements #l Construction Funds 2003 217 089 $ 1 $ 158,289 $ 391,526 $ 1,766,212 $ 594,057 $ 1,22],604 $ 5,220,905 , , 3,185 - - - 1,321 335 4,841 - 168,567 154,730 - - 323,297 - - 10,655 10,955 300 10 008 - - - - 16,175 - - 26,183 , 30 758 - 14,121 1,732 2,372 123,596 172,579 , - 3,824 3,824 - - 56.2D8 56,208 - $ 1,®193 5~D $ 158?89 , $ , 574.214 g® 1,938,849 $ 597,750 $®,1.356.190 $~5.818.79~ $ 46 962 $ 12,816 $ - $ 374 $ - $ 24,822 $ 84,974 , 768 1 - - 2,719 - 6,051 10,538 , - - 125,000 - 125,000 - - - 1,005 1,005 - - - 3,824 3,824 185 3 - 168,567 154,730 1,321 335 328,I38 > 3,572 3,572 032 35 051 557 56,492 137,816 168,567 157,823 1,321 , , - 56,208 56,208 - 647 405 - - - 471,414 817,06] _ _ , - - 686,524 • 686,824 - - - - - 393,976 393,976 - - - - 215,349 235,822 _ 20,473 - _ - 570,000 - - 570,000 _ 1,211,026 596.429 694,395 2.501,850 1,137,008 20,473 405,647 1.781,026 596.429 1,321,158 5,261,741 $~ 1,193,5~p $®158289 $®14 $ $ $~ CITY OF FALCON HEIGHTS, NLINNESOTA GOVERNMENTAL FUNDS • RECONCILIATION OF THE BALANCE SHEE T TO THE STATEMENT OF NET ASSETS As of December 31, 2003 Total Fund Balance -Governmental Funds (Page 29) $ 5,261,741 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of Capital Assets 7,651,947 Less: Accumulated Depreciation (1,319,722) Long-tei7n liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at Fear-End Consist of Bonds Payable 2 440 000 ( ) Compensated Absences Payable (39,787) • .Delinquent property taxes receivable will be collected this year, but are not available .soon enough to pay for the current period's expenditures, and therefore are deferred in the funds. 4,841 DefeiZed special assessment receivable is not available to pay for current expenditures 323,297 and, therefore, are deferred in the funds. Governmental funds do not report a liability for accrued interest on long-terra due debt until due and payable. (47,496) Total Net Assets -Governmental Activities (Page 27) $ 9,394,821 • The notes to the financial statements are an integral part of this statement. 30 CITY OF FALCON HEIGHTS, MINNESOTA GOVERNMENTAL FUNDS Revenues: Property Taxes Special Assessments Licenses and Permits Intergovernrnenta] Charges for Services Fines and Forfeitures Miscellaneous Total Revenues Expenditures: Current: General Government Public Safety Public Works Park and Recreation Community Development Miscellaneous Debt Service Capital Outlay Total Expenditures STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the Year Ended December 31, 2003 Special Debt Service Capital Total Revenue Improvement Projects Other Governmental Community Bonds of Future Tax Increment Governmental Funds General Development 1999 Improvements #1 Construction Funds 2003 $ 810,145 $ - $ - $ - $ 103,911 $ 38,050 $ 952,106 - 59,307 52,640 - 4,456 116,903 79,253 - - - - - 79,253 297,232 1,450,000 - - 20,737 263,745 2,031,714 65,598 - - - - 51,255 116,853 99,564 - - - - - 99>564 56,316 20,269 2,541 40,267 12,018 46,552 177,963 1,408,108 1,470,269 61,848 92,907 136,666 404,558 3,574,356 384,352 - - - - - 384,352 606,603 - - - - 9,807 616,410 237,486 - - - - 38,978 276,464 106,735 - - - - 26,517 133,252 - 1,470,090 - - - - 1,470,090 3,920 - - - - 1,345 5,265 - 187,029 - - 463,404 650,433 - 29,212 2,393 335,135 366,740 1,339,096 1,470,090 187,029 29,212 2,393 875,186 3,903,006 Excess (Deficiency) of Revenues Over (Under) Expenditures 69,012 179 (125,181) 63,695 134,273 (470,628) (328,650) Other Financing Sources (Uses): 738 22 - 168 391 - - 75,000 488,906 Transfers In Transfers Out , (15,000) , (122,738) (351,168) (488,906) Total Other Financing Sources and Uses 7,738 - 391,168 (122,738) (276,168) Net Change in Fund Balances 76,750 179 265,987 (59,043) 134,273 (746,796) (328,650) Fund Balances -Beginning 1,060:258 20,294 139,660 1,840,069 462,156 2,067,954 5,590.391 Fund Balances -Ending $ 1.137,008 $~ 20.473 ~ 405.647 $~ 1.781.026 ~ 596.429 $ 1 $ 5 • • • The notes to the financial statements are an integral part of this statement. 31 CITY OF FALCON HEIGHTS, NIINNESOTA • GOVERNMENTAL FUNDS RECONCILIATION OF THE STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE TO STATEMENT OF ACTIVITIES For the Year Ended December 31, 2003 Total Net Change in Fund Balance -Governmental Funds (Page 31) Amounts reported for governmental activities in the Statement Activities are different because: Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital Outlays Depreciation Expense Disposed Assets Certain revenues in the statement of activities that do not provide current financial • resources are not reported as revenues in the funds (special assessments). Compensated absences are recognized as paid in the governmental funds but recognized as the expense is incurred in the Statement of Activities. Principal payments on long-term debt are recognized as expenditures in the governmental funds but as an increase in net assets on the Statement of Activities. Interest on long-team debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditw-e in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. Delinquent property taxes receivable will be collected this year, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds. Change in Net Assets -Governmental Activities (Page 27) The notes to the financial statements are an integral part of this statement. $ (328,650) 73,714 (113,308) (4,578) (91,106) (2,922) 520,000 9,769 882 $ 63,801 32 CITY OF FALCON HEIGHTS, NIINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 2003 Zvenues: General Property Taxes Licenses and Permits Intergovernmental Revenue: Local Government Aid Market Value Credit Cable TV Franchise Fees Fire Aid DOT.Aid Other Grants and Aids Total Intergovernmental Revenue Charges for Services: Fire Contract Plan Check Fees Other Total Charges for Services Fines and Forfeitures Miscellaneous: Investment Income TIES Payment Refunds and Reimbursements Other Total Miscellaneous Total Revenues Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 874,338 $ 874,338 $ 810,145 $ (64,193) 29,950 29,950 79,253 49,303 213,738 213,738 112,548 (101,190) - - 63,227 63,227 25,000 25,000 39,171 14,171 28,000 28,000 41,832 13,832 31,000 31,000 .38,747 7,747 1,707 1,707 1,707 - 299,445 299,445 297,232 (2,213) 20,000 20,000 31,293 11,293 4,500 4,500 26,093 21,593 5,000 5,000 8,212 3,212 29,500 29,500 65,598 36,098 82,000 82,000 99,564 17,564 30,000 30,000 25,540 (4,460) - - 16,597 16,597 - - 10,869 10,869 16,000 16,000 3,310 (12,690) 46,000 46,000 56,316 10,316 1,361,233 1,361,233 1,408,108 46,875 (Continued) • • • 33 CITY OF FALCON HEIGHTS, MIl~'NESOTA GENERAL FUND • STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For the Year Ended December 31, 2003 (Continued) Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) Expenditures: General Government: Legislative: Wages, Salaries and Compensation $ 21,315 $ 21,315 $ 21,648 $ (333) Materials and Supplies 2,124 2,124 1,777 347 Other: Conferences and Schools 9,000 9,000 9,070 (70) Memberships and Meetings 300 300 20 280 Insurance 600 600 611 (11) Cooperative Service 10,200 10,200 8,192 2,008 Administration: • Wages, Salaries and Compensation Materials and Supplies 107,555 10,000 107,555 10,000 114,448 10,474 (6,893) (474) Other: Consultant 1,000 1,000 - 1,000 Mileage 260 260 327 (67) Conferences and Schools 6,000 6,000 4,710 1,290 Repairs 5,800 5,800 4,655 1,145 Insurance 23,000 23,000 21,402 1,598 Miscellaneous 1,000 1,000 2,197 (1,197) Finance: Wages, Salaries and Compensation 61,555 61,555 61,963 (408) Materials and Supplies 1,500 1,500 386 1,114 Other: Audit 6,000 6,000 5,397 603 Mileage 100 100 203 (103) Conferences and Schools 800 800 470 330 Insurance 400 400 350 50 Miscellaneous 350 350 350 - r ~ L J (Continued) 34 CITY OF FALCON HEIGHTS, NIINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES Il\T FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 2003 (Continued) Expenditures: (Continued) General Government: (Continued) Legal Elections: Wages, Salaries and Compensation Materials and Supplies Other: Mileage Repairs Communications: Wages, Salaries and Compensation Materials and Supplies Other: Telephone Cable TV Web Site/Tech Support Repairs Miscellaneous Planning and Inspection: Wages, Salaries and Compensation Materials and Supplies Other: GIS Support Planners Inspectors Mileage Conferences and Schools Total General Government Budgeted Amounts Original Final Variance with Final Budget - Positive (Negative) $ 12,000 $ 12,000 $ 8,619 $ 3,381 6,298 6,298 6,442 (144) 640 640 1,213 (573) 80 80 - 80 500 500 - 500 4,930 4,930 5,064 (134) 8,000 8,000 5,641 2,359 9,000 9,000 7,019 1,981 8,000 8,000 8,775 (775) 9,000 9,000 5,779 3,221 1,100 1,100 336 764 3,500 3,500 3,340 160 36,450 36,450 37,676 (1,226) 500 500 65 435 3,000 3,000 518 2,482 2,000 2,000 - 2,000 35,200 35,200 24,571 10,629 100 100 242 (142) 500 500 402 98 409,657 409,657 384,352 25,305 (Continued) 35 Actual Amounts •i • • CITY OF FALCON HEIGHTS, NIINNESOTA GENERAL FUND • STATEMENT OF REVENUES, E~ENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For the Year Ended December 31, 2003 (Continued) ~~ r~ U Expenditures: (Continued) Public Safety: Emergency Preparedness: Wages, Salaries and Compensation $ Materials and Supplies Other: Electric Conferences and Schools Repairs Police.: Services Legal ~ Fire Fighting: Wages, Salaries and Compensation Faire Relief Pension Materials and Supplies Other: Cleaning Telephone Mileage Training Memberships and Meetings Medical Examinations Repairs Insurance Miscellaneous _ Total Public Safety Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) 2,005 $ 2,005 $ 2,405 $ (400) 3,380 3,380 2,408 972 90 90 134 (44) 3,500 3,500 1,939 1,561 200 200 - 200 439,903 439,903 435,727 4,176 33,000 33,000 31,357 1,643 38,945 38,945. 33,543 5,402 32,000 32,000 41,832 (9,832) 8,050 8,050. 9,469 (1,419) 2,795 2,795 2,542 253 2,200 2,200 2,215 (15) 500 500 75 425 15,000 15,000 6,130 8,870 800 800 862 (62) 2,000 2,000 1,998 2 10,500 10,500 25,159 (14,659) 6,500 6,500 8,098 (1,598) 500 500 710 (210) 601,868 601,868 606,603 (4,735) (Continued) 36 CITY OF FALCON HEIGHTS, NIINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For the Year Ended December 31, 2003 (Continued) Budgeted Amounts Original Final Expenditures: (Continued) Public Works: Building and Grounds: Wages, Salaries and Compensation $ Materials and Supplies Other: Waste Removal Telephone Electric Natural Gas Water and Sewer Conferences and Schools Repairs Insurance Miscellaneous Streets: Wages, Salaries and Compensation Materials and Supplies Other: Maintenance Street Lighting Repairs Rent Insurance Miscellaneous Engineering Tree Program: Wages, Salaries and Compensation Materials and Supplies Tree Maintenance Other: Mileage Conferences and Schools Total Public Works Actual Amounts Variance with Final Budget - Positive (Negative) 20,503 $ 20,503 $ 20,966 $ (463) 5,000 5,000 3,982 1,018 3,600 3,600 2,948 652 250 250 1,123 (873) 10,600 10,600 9,744 856 7,000 7,000 4,508 2,492 1,340 1,340 3,183 (1,843) 2,800 2,800 615 2,185 5,000 5,000 5,855 (855) 1,500 1,500 1,733 (233) _ _ 61 (61) 35,040 35,040 34,175 865 5,100 5,100 5,253 (153) 22,000 62,000 56,672 5,328 29,500 29,500 26,393 3,107 8,100 8,100 6,866 1,234 750 750 381 369 5,700 5,700 5,980 (280) _ - 246 (246) 7,000 7,000 13,673 (6,673) 198,424 8,541 8,541 8,333 208 300 300 133 167 18,500 18,500 24,259 (5,759) _ _ 39 (39) 300 300 365 (65) 238424 237 486 938 (Continued) 37 • • • CITY OF FALCON HEIG)FITS, MINNESOTA GENERAL FUND • STATEMENT OF REVENUES, EXPENDITURES AND CFIANGES IN FUND BALANCES -BUDGET AND ACTUAL For the Year Ended December 31, 2003 (Continued) Budgeted Amounts Actual Original Final Amounts Expenditures: (Continued) Parks and Recreation: Park Maintenance: Wages, Salaries and Compensation $ Materials and Supplies Other: Waste Removal Telephone Electric Water and Sewer Conferences and Schools Repairs • Insurance Miscellaneous _ Total Park and Recreation Miscellaneous: Contingency: Miscellaneous Total Expenditures Excess of Revenues Over Expenditures Other Financing Sources (Uses): 77,222 $ 3,600 200 1,080 9,250 1,520 500 6,800 5,000 105,172 105,172 106,735 Vaziance with Final Budget - Positive (Negative) $ (2,703) 557 200 (306) 1,895 (219) 500 585 (1,434) (638) (1,563) 13,850 13,850 3,920 9,930 1,328,971 1,368,971 1,339,096 29,875 32,262 (7,738) 69,012 76,750 Transfers In 22,738 22,738 22,738 - Transfers Out (55,000) (15,000) (15,000) - Total Other Financing Sources and Uses (32,262) 7,738 7,738 - Net Change in Fund Balances - - 76,750 76,750 Fund Balances -Beginning 1,060,258 1,060,258 1,060,258 - Fund Balances -Ending $ 1,060,258 $ 1,060.258 $ 1,137,008 $ 76,750 • The notes to the financial statements are an integral part of this statement. 77,222 $ 3,600 200 1,080 9,250 1,520 500 6, 800 5,000 79,925 3,043 1,386 7,355 1,739 6,215 6,434 638 38 CITY OF FALCON HEIGHTS, MINNESOTA CO1VIMiJNITY DEVELOPMENT -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL Year Ended December 31, 2003 Variance with Final Budget - Actual Positive Amounts (Negative) Budgeted Amounts [revenues: Intergovernmental: Met Council Miscellaneous: Investment Income Other Total Revenues Original Final Expenditures: Current: Other: .Audit Miscellaneous Developer Payments Total Expenditures Excess of Revenues Over (Under) Expenditures Fund Balance -January 1 Fund Balance -December 31 $ - $ 1,450,000 $ 1,450,000 $ - 412 412 8,714 8,302 1,155 304,155 261,555 (42,600) 1,567 1,754,567 1,720,269 (34,298) 400 400 410 10 15,100 315,100 143,133 (171,967) - 1,450,000 1,451,547 1,547 15,500 1,765,500 1,595,090 (170,410) (13,933) (10,933) 125,179 20,294 20,294 20,294 136,112 $ 6,361 $ 9,361 $ 145,473 $ 136,112 • • • The notes to the financial statements are an integral part of this statement. 39 CITY OF FALCON HEIGHTS, NHNNESOTA C7 ASSETS: Current Assets: Cash and Investments (Including Cash Equivalents) Accounts Receivable Interest Receivable Prepaid Items Total Current Assets Noncurrent Assets: Capital Assets: Sewer System Storm Drain Furniture and Equipment • Total Cost Less: Accumulated Depreciation Net Fixed Assets Total Assets LL~BILITIES: Current Liabilities: Accounts Payable Compensated Absences Total Liabilities NET ASSETS: Invested in Capital Assets, Net of Related Debt Unrestricted Total Net Assets STATEMENT OF NET ASSETS December 31, 2003 PROPRIETARY FUNDS Sanitary Storm Sewer Drainage Totals $ 1,370,984 99,474 12,556 40,260 $ 641,833 4,409 5,881 $ 2,012,817 103,883 18,437 40,260 1,523,274 933,009 20,380 953,389 (897,085) __ 56,304 1,579,578 23 3,992 4,015 652,123 832,332 832,332 (235,771) 596,561 1,248,684 4,547 60 4,607 2,175,397 933,009 832,332 20,380 1,785,721 (1,132,856) 652,865 2,828,262 4,570 4,052 8,622 56,304 596,561 652,865 1,519,259 647,516 2,166,775 $ 1,575,563 $ 1.244.077 $ 2.819,640 The notes to the financial statements are an integral part of this statement. 40 CITI' OF FALr,CON HEIGHTS, MINNESOTA PROPRIETARY FUNDS CHANGES IN FUND NET ASSETS • STATEMENT OF REVENUES, EXPENSES AND For the Year Ended December 31, 2003 Sanitary Storm Sewer Drainage Totals Operating Revenues: Charges for Services Total Operating Revenues Operating Expenses: Wages, Salaries and Compensation Materials and Supplies Professional Services Electric Conferences and Schools Maintenance Repairs Depreciation Metro Sewer Charges Billing Fees Other Improvements Miscellaneous Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses) Investment Income Change in Net Assets Total Net Assets -January 1 Total Net Assets -December 31 $ 528,149 $ 29,919 $ 558,068 528,149 29,919 558,068 40,229 3,545 43,774 2,046 150 2,196 410 28,377 28,787 840 - 840 305 - 305 - 17,674 17,674 2,605 3,914 6,519 18,660 16,648 3.5,308 373,529 - 373,529 9,952 468 10,420 - 7,775 7,775 2,128 - 2,128 450,704 78,551 529,255 77,445 (48,632) 28,813 26,875 13,761 40,636 104,320 (34,871) 69,449 1,471,243 1,278,948 2,750,191 $ 1,575.563 $ 1,244,077 $ 2,819,640 • The notes to the financial statements are an integral part of this statement. 41 CITY OF FALCON HEIGHTS, MINNESOTA • PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For the Year Ended December 31, 2003 Cash Flows from Operating Activities: Receipts from Customers and Users Payments to Suppliers Payments to Employees Net Cash Provided By Operating Activities Sanitary Storm Sewer Drainage Totals Cash Flows from Investing Activities: Interest and Dividends Received Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents -January 1 ash and Cash Equivalents -December 31 • $ 493,996 $ 29,582 $ 523,578 (381,289) (53,811) (435,100) (39,542) (3,51) (43,093) 73,165 (27,780) 45,385 31,605 16,776 48,381 104,770 (11,004) 93,766 1,266,214 652,837 1,919,051 $ 1,370,984 $ 641,833 $ 2,012,817 42 CITY OF FALCON HEIGHTS, MINNESOTA PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For the Year Ended December 31, 2003 (Continued) Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation Expense (Increase) in Accounts Receivable Decrease in Prepaid Items Increase (Decrease) in Accounts Payable Increase (Decrease) in Compensated Absences Payable Total Adjustments Net Cash Provided By Operating Activities Sanitary Sewer $ 77,445 18,660 (34,153) 10,825 (299) Storm Drainage Totals $ (48,632) 16,648 (337) 4,547 $ 28,813 35,308 (34,490) 10,825 4,248 687 (6) 681 (4,280) 20,852 16,572 $ 73,165 $ (27,780) $ 45,385 • • • The notes to the financial statements are an integral part of this statement. 43 • CITY OF FALCON HEIGHTS, NIINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1- St1MMARY OF SIGNIFICANT ACCOUNTING POLICIES A. ReporEing Entity The City of Falcon Heights is a statutory city governed by an elected mayor and four council members. The accompanying financial statements present the government entities for which the government is considered to be financially accountable. B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are . restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. • 44 CITY OF FALCON HEIGHTS, MINNESOTA • NOTES TO THE FINANCLAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modifaed accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available i.f they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. The government reports the following major governmental funds: The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Community Development special revenue fund accounts for community development revenues and expenditures. The Improvement Bonds of 1999 debt service fund accounts for the resources accumulated and payments made for principal and interest on this bond issue. The Future Improvements capital project fund accounts for costs associated with replacement of the City's utility and road systems. The Tax Increment #1 Construction capital project fund accounts for costs associated with TIF District #1. • 4~ • CITY OF FALCON HEIGHTS, NIINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) The government reports the following major proprietary funds: The Sanitary Sewer enterprise fund accounts for the operations of the City's sanitary sewer utility. The Storm Drainage enterprise fund accounts for the activities of the government's storm drainage operations. The government reports the following fiduciary fund: The Mayor's Commission Against Drugs agency fund accounts for the amounts related to this program held by the City in a strictly custodial capacity. • Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund fmancial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. As a general rule, the effect of interfund activity has been eliminated from the government- wide fmancial statements. Exceptions to this general rule are charges between the government's sanitary sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. The City levies its property tax for the subsequent year during the month of December. December 28 is the last day the City can certify a tax levy to the County Auditor for collection the following year. Such taxes become a Iien on January 1 and are recorded as receivables by the City at that date. The property tax is recorded as revenue when it becomes measurable and available. Ramsey County is the collecting agency for the levy and remits the collections to the City three times a year. Taxes not collected as of December 31 each year are shown as • delinquent taxes receivable. 46 CITY OF FALCON HEIGHTS, MINNESOTA • NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) The County Auditor prepares the tax list for all taxable property in the City, applying the applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The County Auditor also collects all special assessments, except for certain prepayments paid directly to the City. The County Auditor submits the list of taxes and special assessments to be collected on each parcel of property to the County Treasurer in January of each year. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Sanitary Sewer enterprise fund and the Storm Drainage enterprise fund are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation • on capital assets. All revenues and expenses not meeting this definition are reported asnon- operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities and Net Assets or Equity 1. Deposits and Investments The govemment's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. 1llinnesota Statutes authorizes the City to invest in obligations of the U.S. Treasury, agencies and instrumentalities, shares of investment companies whose only investments are in the aforementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements and commercial paper of the highest quality with a maturity of no longer than 270 days and in the Minnesota Municipal Investment Pool. Investments for the government are reported at fair value. The Minnesota Municipal Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares. • 47 • CITY OF FALCON HEIGHTS, NNUNNNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Liabilities and Net Assets or Equity (Continued) 2. Receivables and Payables All trade and property tax receivables are shown at a gross amount since both are assessable to the property taxes and are collectible upon the sale of the property. Property taxes are submitted to the County Auditor by December 28 of each year, to be levied on 3anuary 1 on property values assessed as of the same date. The tax levy notice is mailed in March with the first half payment due on May 15 and the second half payment is due on October 15. Unpaid taxes at December 31 become liens on the respective property and are classified in the financial statements as delinquent tax receivable. 3. Prepaid Items • Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 4. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $ 5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. • 48 CITY OF FALCON HEIGHTS, MINNESOTA NOTES TO THE FINANCL~L STATEMENTS • For the Year Ended December 31, 2003 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Liabilities and Net Assets or Equity (Continued) 4. Capital Assets (Continued) Property, plant and equipment of the City is depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings 40 Park Buildings 30 Building Improvements 15 Furniture and Equipment S Light Vehicles 5 Machinery and Equipment 5-7 Fire Trucks 20 Utility Distribution System 50 Th Ci • e ty uses the modified approach in accounting for its Street and Alley Infrastructure assets. Under this method, depreciation expense is not recognized. A pavement condition policy has been established and all costs of maintaining the assets at this level are expensed. 5. Compensated Absences City employees earn vacation time based on years of City service with a maximum at twice their annual vacation leave. At least one week of vacation must be used per calendar year. Upon termination, employees will receive compensation for unused vacation time. Sick leave is accumulated for all regular full-time employees at the rate of one day per calendar month to a maximum of 120 days. The City compensates employees who leave municipal service at the rate of 50% of unused leave. Vacation and sick leave benefits are recorded as expenditures in governmental funds when the obligations are expected to be liquidated with expendable financial resources. Vacation and sick benefits are recorded as expenses in proprietary funds when earned. 6. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fluid financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance • costs are reported as deferred charges and amortized over the term of the related debt. 49 • CITY OF FALCON HEIGHTS, NIINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUI~TTING POLICIES D. Assets, Liabilities and Net Assets or Equity (Continued) 6. Long-term Obligations (Continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 7. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative • management plans that are subject to change. NOTE 2 -STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary Information 1. In August of each year, City staff submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them for the upcoming year. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution after obtaining taxpayer comments. 4. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with accounting principles (GAAP) generally accepted in the United States of America. 50 CITY OF FALCON HEIGHTS, NIINNESOTA • NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 2 -STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary Information (Continued) 5. Expenditures may not legally exceed budgeted appropriations at the department level. No fund's budget can be increased without City Council approval. The City Council may authorize transfer of budgeted amounts between departments within any fund. Management may amend budgets within a department level, so long as the total department budget is not changed. 6. Annual appropriated budgets are adopted during the year for the General and Special Revenue Funds. Annual appropriated budgets are not adopted for Debt Service Funds because effective budgetary control is alternatively achieved through bond indenture provisions. Budgetary control for Capital Project Funds is accomplished through the use of project controls and formal appropriated budgets are not adopted. 7. Budgeted amounts are as originally adopted or as amended by the City Council. Individual amendments were not material in relation to the original amounts budgeted. Budgeted expenditure appropriations lapse at year-end. • Encumbrances outstanding at year-end expire and outstanding purchase orders are canceled and not reported in the financial statements. NOTE 3 -DETAILED NOTES ON ALL FUNDS A. Deposits and Investments Cash balances of the City's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota Statutes. Each fund's portion of this pool (or pools) is displayed on the financial statements as "cash and investments (including cash equivalents)." For purposes of identifying risk of investing public funds, the balances and related restrictions are summarized as follows: Deposits -Minnesota Statutes require that all deposits with financial institutions must be collateralized in an amount equal to 110% of deposits in excess of FDIC insurance. 51 • CITY OF FALCON HEIGHTS, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 -DETAILED NOTES ON ALL FUNDS A. Deposits and Investments (Continued) Category 1-Deposits covered by Federal Depository Insurance (FDIC) and those deposits collateralized with securities held by the City or by its agent in the City's name. Category Bad 1 2 3 Balance Bank Accounts* $ - $ _ $ _ $ _ * The City uses a bank account in conjunction with their Minnesota Municipal Investment Pool account. At the end of each day, the funds remaining in the bank account are swept into the investment account. Therefore, the City does not maintain a daily cash balance. The City also invests idle funds as authorized by Minnesota Statutes, as follows: • 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. .Shares of investment companies registered under the Federal Investment Company Act of .1940 and whose only investments are in securities authorized by Minnesota Statutes 3. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. 4. Commercial paper issued by United States corporations or their Canadian subsidiaries of the highest quality and maturing in 270 days or less. 5. Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $ 10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. The City's investments are categorized in the following table to give an indication of the level of risk assumed at year-end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty or by its trust department or agent but not in the City's name. • 52 CITY OF FALCON HEIGHTS, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, ZOQ3 NOTE 3 -DETAILED NOTES ON AI.L FUNDS A. Deposits and Investments (Continued) At year-end, the government's investment balances were as follows: U.S. Government Agency Securities Negotiable Certificates Of Deposit Total Not Subject To Categorization: Minnesota Municipal Investment Pool Open End Mutual Funds Money Market Mutual Funds Petty Cash Total Cash And Investments B. Receivables Reported Category Amount/ 1 2 3 Fair Value $ 2,883,129 $ - $ - $ 2,883,129 3,013,876 - - 3,013,876 $ 5,897,005 $ - $ - 5,897,005 871,457 217,807 247,203 250 $ 7.233,722 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue reported in the governmental funds were as follows: Unavailable • • Delinquent Property Taxes Receivable (General Fund) $ 3,185 Delinquent Property Taxes Receivable (Tax Increment #1 Construction) 1,321 Delinquent Property Taxes Receivable (Other Government Funds) 335 Special Assessments Not Yet Due (Improvement Bonds of 1999) 168,567 Special Assessments Not Yet Due (Future Improvements) 154,730 Total Deferred/Unearned Revenue for Governmental Funds $ 328.138 • 53 CITY OF FALCON HEIGHTS, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 -DETAILED NOTES ON ALL FUNDS C. Capital Assets Capital asset activity for the year ended December 31, 2003 was as follows: Governmental Activities: Capital Assets, not Being Depreciated: Land Infrastructure Total Capital Assets, not Being Depreciated Capital Assets, Being Depreciated: Buildings • Improvements Other Than Buildings Machinery and Equipment Total Capital Assets Being Depreciated Less Accumulated Depreciation for: Beginning Ending Balance Increases Decreases Balance $ 416,707 $ 3,000 $ - $ 419,707 4,703,061 - - 4,703,061 5,119,768 3,000 - 5,122,768 1,273,255 - - 1,273,255 168,564 - - 168,564 1,072,079 70,714 (55,433) 1,087,360 2,513,898 70,714 (55,433) 2,529,179 Buildings (572,352) (35,097) - (607,449) Improvements Other Than Buildings (148 995) (3,305) - (152,300) Machinery and Equipment (535,922) (74,906) 50,855 (559,973) Total Accumulated Depreciation (1,257,269) (113,308) 50,855 (1,319,722) Total Capital Assets, Being Depreciated, Net 1,256,629 (42,594) (4,578) 1,209 457 , Governmental Activities Capital Assets, Net $ 6,376,397 $ (39.594) $ (4,578) $ 6,332,225 • 54 CITY OF FALCON HEIGHTS, NIINNNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 -DETAILED NOTE5 ON ALL FUNDS C. Capital Assets (Continued) Beginning Ending Balance Increases Decreases Balance Business-type Activities: Capital Assets, Being Depreciated: Buildings and System $ 1,765,341 $ - $ - $ 1,765,341 Machinery and Equipment 20,380 - - 20,380 Total Capital Assets, Being Depreciated 1,785,721 - - 1,785,721 Less Accumulated Depreciation For: Buildings and System (1,077,168) (35,308) - (1,112,476) Machinery and Equipment (20,380) - - (20,380) Total Accumulated Depreciation (1,097,548) (35,308) - (1,132,856) typ p Business- e Activities Ca ital Assets, Net $ 688 173 , $ (35,308) $ - $ 652,865 Depreciation expense was charged to functions/programs of the government as follows: Governmental Activities: General Government $ 32,217 Public Safety 37,351 Public Works 18,492 Park And Recreation 25,248 Total Depreciation Expense -Governmental Activities $ 113,308 Business-type Activities: Sanitary Sewer $ 18,660 Storm Drainage 16,648 Total Depreciation Expense -Business-type Activities $ 35,308 • 55 • CITY OF FALCON HEIGHTS, NIINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 -DETAILED NOTES ON ALL FUNDS D. Transfers Transfers during the year ended December 31, 2003 are as follows: Transfers In: Nonmaj or General Improvement Governmental Fund Bonds of 1999 Funds Total Transfers Out: General Fund $ - $ - $ 15,000 $ 15,000 Future Improvements 22,738 100,000 - 122,738 Nonmajor Governmental Funds - 291,168 60,000 351,168 Total $ 22,738 $ 391,168 $ 75,000 $ 488,906 • E. Lonb term Debt General Obligation Bonds The City issues general obligation bonds to provide for financing tax increment projects and street improvements. Debt service is covered respectively by tax increments and special assessments against benefited properties with any shortfalls being paid from general taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 15-year serial bonds with equal debt service payments each year. General obligation bonds currently outstanding are as follows: Purpose Interest Rates Amount Governmental Activities - G.O. Improvement 3.70 - 4.50% $ 1,085,000 Governmental Activities - G.O. Tax Increment 3.20 - 5.25% 1,355,000 Total $ 2,440,000 r~ 56 CITY OF FALCON HEIGHTS, MINNESOTA • NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 -DETAILED NOTES ON ALL FUNDS E. Long-term Debt (Continued) General Obligation Bonds (Continued) Annual debt service requirements to maturity for general obligation bonds are as follows: General Obligation General Obligation Tax Increment Total Long-Term Improvement Bonds Financing Bonds Bonded Debt Year Principal Interest Principal Interest Principal Interest 2004 $ 135,000 $ 43,710 $ 145,000 $ 64,123 $ 280,000 $ 107,833 2005 145,000 38,038 150,000 57,015 295,000 95,053 2006 150,000 31,915 155,000 49,685 305,000 81,600 2007 155,000 25,471 165,000 41,982 320,000 67,453 2008 160,000 18,698 170,000 33,710 330,000 52,408 2009-2013 340,000 15,484 570,000 45,410 910,000 60,894 25 440 000 $ 2 $ 465 241 • Total $ 1,085,000 $ 173,316 $ 1,355,000 $ 291,9 , , , Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2003, was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Actvitites: Bonds Payable: General Obligation Improvement Bonds $ 1,470,000 $ - $ (385,000) $ 1,085,000 $ 135,000 General Obligation Tax Increment Bonds 1,490,000 - (135,000) 1,355,000 145,000 Total Bonds Payable 2,960,000 - (520,000) 2,440,000 280,000 Compensated Absences 39,685 27,550 (23,876) 43,359 3,674 Governmental Activity Long-term Liabilities $ 2,999,685 $ 27,550 $ (543,876) $ 2,483,359 $ 283,674 The General Fund typically liquidates the liability related to compensated absences. • 57 • CITY OF FALCON HEIGHTS, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 4 -OTHER INFORMATION A. Risk Management The City purchases commercial insurance coverage through the League of Minnesota Cities Insurance Trust with other cities in the State, a public entity risk pool currently operating as a common risk management and insurance program. The City pays an annual premium to the League for its insurance coverage. The League of Minnesota Cities Insurance Trust is self- sustaining through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported, but retains risk for the deductible portion of its insurance policies. The amount of these deductibles is considered immaterial to the financial statements. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. The City's workers' compensation insurance policy is retrospectively rated. With this type of policy, final premiums are determined after loss experience is known. The amount of premium • adjustment for 2003 is estimated to be immaterial based on workers' compensation rates and salaries for the year. At December 31, 2003, there are no other claims liabilities reported in the Fund based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the fmancial statements and the amount of the loss can be reasonably estimated. B. Employee Retirement Systems and Pension Plans Pension Plans -Primary Government 1. Defined Benefit Pension Plans -Statewide Plan Description All full-time and certain part-time employees of the City of Falcon Heights are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PEKE) and the Public Employees Police and Fire Fund (PEPFF) which are cost- sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Nfinnesota Statutes, Chapters 353 and 356. • 58 CITY OF FALCON HEIGHTS, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 4 -OTHER INFORMATION B. Employee Retirement Systems and Pension Plans (Continued) Pension Plans -Primary Government (Continued) 1. Defined Benefit Pension Plans -Statewide (Continued) Plan Description (Continued) PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PER.A provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by state statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and years of credit at termination of service. wo methods are used to com ute benefits for PERF's Coordinated and Basic Plan • T P :members. The retiring member receives the higher of a step-rate benefit accrual formula. :,(Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first 10 years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0% for each year of service. For all PEPFF members and for PERF members hired prior to July 1, 1989, whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. • 59 • CITY OF FALCON HEIGHTS, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 4 -OTHER INFORMATION B. Employee Retirement Systems and Pension Plans (Continued) Pension Pans -Primary Government (Continued) 1. Defined Benefit Pension Plans -Statewide (Continued) Plan Description (Continued) There are different types of annuities available to members upon retirement. A single-life annuity is a lifetime annuity that ceases upon the death of the retiree - no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave ,public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current • provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and .required supplementary information for PERF and PEPFF. That report maybe obtained on the web at www.mnpera.org, by writing to PERA, 60 Empire Drive, #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or (800) 652-9026. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 9.10% and 5.10%, respectively, of their annual covered salary. PEPFF members are required to contribute 6.20% of their annual covered salary. The City of Falcon Heights is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 5.53% for Coordinated Plan PERF members and 9.30% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2003, 2002 and 2001 were $ 17,599, $ 16,264 and $ 13,530, respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2003, 2002 and 2001 were $ 34, $ 165 and $ 132, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. • 60 CITY OF FALCON HEIGHTS, MINNESOTA • NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 5 - COMNIITMENTS The City has entered into construction contracts for various street and utility improvements. As of December 31, 2003, the City was committed for $ 72,817 for the contracts. • • 61 • CITY OF FALCON HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended December 31, 2003 INFRASTRUCTURE ASSETS REPORTED USING THE MODIFIED APPROACH The City uses the software program MicroPAVER, which is developed and supported by the US Army Corps of Engineers as a tool of pavement management. It will be used to inventory and rate the quality of the pavement on all sections of streets and alleys within the City. MicroPAVER surveys the pavement segments of the City and assigns a Pavement Condition Index (PCI) rating to each. The following scale set up by the City determines a schedule of maintenance, rehabilitation and reconstruction for pavement segments: 100 to 80 ~ Excellent; 79 to 50 ~ Good; 49 to 30 -~ Fair; and 29 to 0 ~ Failed. The goal of the City is to maintain an overall PCI rating above 70. The weighted average of the City's PCI based on analysis performed on all roads during 2001 was 88, which denotes that the City's streets are in "Excellent" condition. This was the first analysis of the City's streets and alleys. The City plans on performing a complete rating analysis every three years. 2003 was the first year estimated-to- actual comparisons are available for the amounts needed to maintain and preserve the infrastructure at the prescribed levels. Comparison ofEstimated-to-Actual Maintenance/Preservation • 2003 Streets and Alleys: :Estimated $ 40,000 :Actual 37,121 Difference $ 2,879 Condition Rating of the City's Street System Streets and Alleys 2001 ss 62 • NON-MAJOR FUNDS 63 • • CITY OF FALCON HEIGHTS, MINNESOTA NON-MAJOR GOVERNMENTAL FUNDS • COMBINING BALANCE SHEET December 31, 2003 Special Revenue Citizen Corps Council/Community Park Emergency Response Solid Programs Water Team Grant Waste ASSETS: Cash and Investments $ 457 $ 69,822 $ - $ 34,266 Taxes Receivable -Delinquent _ _ _ _ Accounts Receivable - 1,256 4,416 4,983 Due from Other Governments - 104,828 - 4,814 Total Assets $ 457 $ 175,906 $ 4,416 $ 44,063 LIABILITIES AND FUND BALANCES: Liabilities: Accounts Payable $ 248 $ 324 $ 592 $ - Contracts Payable - 6,051 _ _ Due to Other Funds - - 3,824 - Deferred Revenue _ _ _ _ • Total Liabilities 248 6,375 4,416 - Fund Balances: Reserved - _ _ _ Unreserved: Designated 209 169,531 - .44,063 Undesignated - _ _ _ Total Fund Balances 209 169,531 - 44.063 Total Liabilities and Fund Balances $ 457 $ 175.906 $ 4,416 $ 44.063 r ~ 64 • Debt Service Tax Tax Increment Increment Lawful Bonds of Bonds of Gambling Total 1993 1996 Total $ 1,546 $ 106,091 $ 17,060 $ 394,354 $ 411,414 - 10,655 - - - - 109,642 - - - $ 1,546 $ 226,388 $ 17,060 $ 394,354 $ 411,414 $ - $ 1,164 $ - $ - $ - - 6,051 - - - - 3,824 - - - - 11,039 - - - - 17,060 394,354 411,414 1,546 215,349 - - - 1,546 215,349 17,060 394,354 411,414 ~ 1,546 $ 226,388 $ 17,060 $ 394,354 $ 411,414 65 • • CITY OF FALCON HEIGHTS, NIINNESOTA NON-MAJOR GOVERNMENTAL FUNDS • COMBINING BALANCE SHEET December 31, 2003 (Continued) Capital Projects Parks/ PW General Public Safety & Facilities Tax Capital Capital Capital Increment #2 Improvements Improvements Improvements Construction ASSETS: Cash and Investments $ 114,916 $ 200,576 $ 302,035 $ 84,769 Taxes Receivable -Delinquent - - - 335 Accounts Receivable - _ _ _ Due from Other Governments - 12,904 - _ Total Assets $ 114,916 $ 213,480 $ 302,035 $ 85,104 LIABILITIES AND FUND BALANCES: Liabilities: Accounts Payable $ 6,967 $ - $ 16,691 $ - Contracts Payable - _ _ _ Due to Other Funds - _ _ _ Deferred Revenue - - 335 • Total Liabilities 6,967 ~ 16,691 335 Fund Balances: Reserved - _ _ _ Unreserved: Designated 107,949 213,480 285,344 84,769 Undesignated - _ _ _ Total Fund Balances 107,949 213,480 285,344 84,769 Total Liabilities and Fund Balances $ 114,916 $ 213,480 $ 302,035 $ 85,104 • 66 • Tax Increment #1-3 Total Total Non-major Governmental Funds $ 1,803 $ 704,099 $ 1,221,604 - 335 335 - - 10,655 1,050 13,954 123,596 $ 2,853 $ 718,388 $ 1,356,190 $ - $ 23,658 $ 24,822 - - 6,051 - - 3,824 - 335 335 - 23,993 35,032 - - 411,414 2,853 694,395 909,744 2,853 694,395 1,321,158 $ 2,853 $ 718,388 $ 1,356,190 • • 67 CITY OF FALCON HEIGHTS, MINNESOTA NON-MAJOR GOVERNMENTAL FUNDS • COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 2003 Revenues: Tax Increments Special Assessments Intergovernmental Charges for Services Miscellaneous: Investment Income Other Total Revenues Expenditures: Current: Wages, Salaries and Compensation Materials and Supplies • Other Services and Charges Debt Service: Principal Interest and Fiscal Charges Capital Outlay: Engineering Professional Fees Machinery and Equipment Other Improvements Miscellaneous Total Expenditures Excess (Deficiency) of Revenues Over (Under} Expenditures Other Financing Sources (Uses): Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances -Beginning Fund Balances -Ending Special Citizen Corps Council/Community Park Emergency Response Programs Water Team Grant $ - $ - $ - - 168,937 9,807 9,913 10,951 - 210 3,186 637 - 10,760 183,074 9,807 22,489 - 1,924 3,018 - 7,883 1,010 868 - - 170,863 - 26,517 171,731 9,807 (15,757) 11,343 - 15,000 - - 15,000 - - (757) 11,343 - 966 158,188 - $ 209 $ 169.531 $ - 68 • Revenue Solid Lawful Waste Gambling $ - $ - $ 9,629 - 30,391 - 818 46 - 81 _ 40,838 127 Debt Service Tax Tax Improvement Increment Increment Bonds of Bonds of Bonds of 'otal 1993 1993 1996 Total - 4,956 - - 4,956 188,373 - - - - 51,255 - - - - 4,260 7,718 324 10,810 18,852 718 - - - - 244,606 12,674 324 10,810 23,808 1,748 - 26,161 - - - - 1,562 - 12,463 - - - - 34,800 115 36,793 410 410 410 1,230 • - - - 250,000 50,000 85,000 385,000 - - - 7,332 5,942 65,130 78,404 - 170,863 - - - - 115 246,280 257,742 56,352 150,540 464,634 2,728 12 (1,674) (245,068) (56,028) (139,730) (440,826) - - 15,000 - 60,000 - 60,000 - - - (291,168) - - (291,168) - - 15,000 (291,168) 60,000 - (231,168) 2,728 12 13,326 (536,236} 3,972 (139,730) (671,994) 41,335 1,534 202,023 536,236 13,088 534,084 1,083,408 $ 44.063 $ 1.546 $ 215.349 $ - $ 17.060 $ 394,354 $ 411.414 69 CITY OF FALCON HEIGHTS,IVIINNESOTA NON-MAJOR GOVERNMENTAL FUNDS • COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 2003 (Continued) Revenues: Tax Increments Special Assessments Intergovernmental Charges for Services Miscellaneous: Investment Income Other Total Revenues Expenditures: Current: Wages, Salaries and Compensation • Materials and Supplies Other Services and Charges Debt Service: Principal Interest and Fiscal Charges Capital Outlay: Engineering Professional Fees Machinery and Equipment Other Improvements Miscellaneous Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (iJses): Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances -Beginning • Fund Balances -Ending Capital Parks/ PW General Public Safety & Facilities Capital Capital Capital Improvements Improvements Improvements $ - $ - $ - - 12,904 - 2,973 6,125 8,210 - - 4,025 2,973 19,029 12,235 410 410 410 11,454 41,262 37,500 - - 9,203 11,864 41,672 47,113 (8,891) (22,643) (34,878) (8,891) (22,643) (34,878) 116,840 236,123 320.222 $ 107.949 $ 213.480 $ 285.344 70 • Projects Tax Hamline Increment #2 Tax Sheldon Construction Increment #1-3 St. Improvements Total $ 35,200 $ 2,850 $ - $ 38,050 $ 38,050 - - - - 4,956 - - 62,468 75,372 263,745 - - - - 51,255 1,604 3 (218) 18,697 41,809 - - - 4,025 4,743 36,804 2,853 62,250 136,144 404,558 - - - - 26,161 - - - - 12,463 - - - - 38,023 - - - - 385,000 - - - - 78,404 - - 14,308 14,308 14,308 1,119 - - 2,349 2,349 - - - 90,216 90,216 - - 47,749 56,952 227,815 254 - 193 447 447 1,373 - 62,250 164,272 875,186 35,431 2,853 - (28,128) (470,628) - - - - 75,000 (60,000) - - (60,000) (351,168) (60,000) - - (60,000) (276,168) (24,569) 2,853 - (88,128) (746,796) 109,338 - - 782,523 2,067,954 ~ 84,769 $ 2.853 $ - $ 694,395 $ 1,321,158 Total Non-major Governmental Funds 71 • • CITY OF FALCON HEIGHTS, MINNESOTA SPECIAL REVENUE FUND • SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL PARK PROGRAMS Year Ended December 31, 2003 2003 Revenues: Charges for Services Miscellaneous: Investment Income Other Total Revenues Expenditures: Current: Wages, Salaries and Compensation • Materials and Supplies Other: 1~udit Rent ~Ivliscellaneous Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources: Operating Transfers In Excess of Revenues and Other Sources Over (Under) Expenditures Fund Balance -January 1 Fund Balance -December 31 Over (Under) Budget Actual Budget $ 10,250 $ 9,913 $ (337) 200 210 - 637 10,450 10,760 10 637 310 28;527 22,489 (6,038) 4,400 3,018 (1,382) 400 .410 10 400 320 (80) 500 280 (220) 34,227 26,517 (7,710) (23,777) (15,757) 8,020 15,000 15,000 (8,777) (757) 8,020 966 966 - $ (7,8II) $ 209 $ 8.020 72 CITY OF FALCON HEIGHTS, MINNESOTA SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL WATER Year Ended December 31, 2003 Revenues: Intergovernmental: Water Utility Aid Charges for Services Miscellaneous: Investment Income Total Revenues Expenditures: Current: Other: .Audit Repair ,Billing Fees 'Miscellaneous Capital Outlay: Other Improvements Total Expenditures Excess of Revenues Over (Under) Expenditures Fund Balance -January 1 Fund Balance -December 31 2003 Over (Under) Budget Actual Budget $ - $ 168,937 $ 168,937 11,000 10,951 (49) 3,875 3,186 (689) 14,875 183,074 168,199 400 410 10 400 - (400) 150 108 (42) 50 350 300 170,000 170,863 863 171,000 171,731 731 (156,125) 11,343 167,468 158,188 158,188 $ 2,063 $ 169,531 $ 167,468 • • 73 CITY OF FALCON HEIGHTS, MINNESOTA SPECIAL REVENUE FUND • SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL CITIZEN CORPS COUNCIL/COMMUNITY EMERGENCY RESPONSE TEAM GRANT Year Ended December 31, 2003 Revenues: Intergovernmental: Cert Grant Expenditures: Current: Wages, Salaries and Compensation Materials and Supplies Total Expenditures .Excess of Revenues Over (Under) Expenditures 2003 Over (Undei) Budget Actual Budget $ 9,807 $ 9,807 $ - 2,125 1,924 (201) 7,682 7,883 201 9,807 9,807 - Fund Balance - 3anuary 1 Fund Balance -December 31 $ - $ - $ - • 74 CITY OF FALCON HEIGHTS, hII1VNESOTA SPECIAL REVENUE FUND SCHEDULE OF REVENUES, E~ENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL SOLID WASTE Year Ended December 31, 2003 2003 Revenues: Intergovernmental: Recycling Crrant Charges for Services Miscellaneous: Investment Income Total Revenues Expenditures: Current: Wages, Salaries and Compensation Materials anal Supplies Other: Audit Repair Billing Fees Miscellaneous Total Expenditures Excess of Revenues Over (Under) Expenditures Fund Balance -January 1 Fund Balance -December 31 Budget Actual Over (Under) Budget $ 10,900 $ 9,629 $ (1,271) 30,000 30,391 391 961 41,861 818 (143) 40,838 (1,023) 1,602 1,748 146 • 1,000 1,562 562 400 410 10 32,000 30,713 (1,287) 115 102 (13) 4,500 3,575 (925) 39,617 38,110 (1,507) 2,244 2,728 484 41,335 41,335 - $ 43,579 $ 44,063 $ 484 • 7~ CITY OF FALCON HEIGHTS, MINNESOTA SPECIAL REVENUE FUND • - SCHEDULE OF REVENUES EXPEND ITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL LAWFUL GAMBLING Year Ended December 31, 2003 Revenues: Miscellaneous: Investment Income Other Total Revenues Expenditures: Current: Other: Audit . Miscellaneous Total Expenditures Excess of Revenues Over (Under) Expenditures Fund Balance -January 1 Fund Balance -December 31 • 2003 Over (Under) Budget Actual Budget $ 29 $ 46 $ 17 600 81 (519) 629 127 (502) 400 43 (357) 1,500 72 (1,428) 1,900 115 (1,785) (1,271) 12 1,283 1,534 .1,534 - $ 263 $ 1,546 $ 1,283 76 CITY OF FALCON HEIGHTS, NIINNESOTA STATEMENT OF CHANGES IN AGENCY FUND ASSETS AND LIABILITIES Year Ended December 31, 2003 MAYOR'S COMMISSION AGAINST DRUGS December 31, December 31, 2002 Additions Deductions 2003 ASSETS: Due from Other Governments $ 10,933 $ - $ 10,933 $ - Total Assets $ 10,933 $ - $ 10,933 $ LIABILITIES: Accounts Payable $ 10,933 $ - $ 10,933 $ - Total Liabilities $ 10,933 $ - $ 10,933 $ - • • 77 ~~1~~~~~~~57~ ~~~~®1 V • rl M U1 !~ ~ [~ lY) '~ ~ ~p In t~ .~ Q Q ~ ~ ~ ~ ~ N M ~ [~ z z z z z Z z N N M 59 O N '-+ y M ~ ~ ~ Q~ Q~~ Q Q M et ~ ~~~zzzzzzz Q ~~~- N O ~ ~'L' 3~ Q Q~ Q Q~~~ ~ ~~~jzzzzzzz~'^~'~ z ~ ~ ~~~ Q O y. .-~ N ~O ~ F, ~ °~ ~QQ4d000~~o p QZZZZZZZ~~~ z e ~ o a W ~ ~ . ~ ~ ~ q m t!~ sv'. 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O a 0 m 0 r3•t • • • CITY OF FALCON HEIGHTS, MINNESOTA PROPERTY TAX RATES AND TAX LEVIES • Last Ten Fiscal Years Table 7 _ Net Tax Capacity Rates School Fiscal District Technical Year City #623 College 1994 15.406 72.227 1.428 1995 16.485 73.798 0.372 1996 15.883 75.237 0.375 1997 16.110 74.650 0.297 1998 17.314 45.028 0.194 1999 17.097 57.014 0.333 2000 17.603 51.942 0.261 2001 16.357 41.129 0.314 2002 28.411 10.019 0.070 2003 26.032 12.486 (3> 0.098 Ramsey County 44.461 44.692 43.785 44.226 46.246 47.021 44.839 42.166 55.366 54.603 Special Districts 4.826 4.699 4.973 5.256 5.579 5.934 6.687 7.029 4.532 6.186 Total 138.348 140.046 140.253 140.539 114.361 127.399 121.332 106.995 98.398 99.405 Amount of Tax Levies ~l~ School Fiscal District Technical ar City ~Z~ #623 College 94 $ 527,852 $ 2,459,832 $ 50,566 1995 520,867 2,357,800 6,384 1996 549,081 2,574,127 12,856 1997 577,316 2,686,435 11,209 1998 589,416 2,496,924 7,472 1999 597,098 2,692,526 10,562 2000 615,925 2,594,875 9,685 2001 643,307 2,410,044 11,754 2002 851,600 1,198,450 4,796 2003 874,338 1,052,667 3,081 Ramsey County $ 1,502,935 1,426,691 1,508,953 1,586,132 1,583,249 1,631,940 1,592,989 1,654,183 1,761,011 1,809,902 Special Districts $ 162,864 158,581 169,025 186,914 190,408 204,031 230,078 269,665 179,415 195,149 Total $ 4,704,049 4,470,323 4,814,042 5,048,006 4,867,469 5,136,157 5,043,552 4,988,953 3,995,272 3,935,137 ~1~ Levies shown are the City's proportionate share of tax dollars levied to provide services to taxpayers in Falcon Heights. Because of the Fiscal Disparity program, these levies are not the same as what the taxpayer in Falcon Heights pays for services. (2) Does not include tax increments. C3) School District #623 has a market value based tax begirming pay 1998. For 2003, that rate is .20792%. Source: Department of Taxation and Records Administration -Tax Accounting Section -Ramsey County • 85 H 0 H w F~1 W 0 W O H H U x+ ea H w 0 a w M N i"~i M d~~, ~ ~ ~A H d M O O N R$ H ~ ~ ~~ o ~ ~ a, H ~ o ~ ~ m ~ ~ ~ m ~ d x ~ N .~ w 0 c~--{c~o~~oO~nm --~ N t~ oo ~n v ~n \p rr ~ N N 0 0 0 0 0 0 0 0 O O N ~n O N --+ O oo O ~n O eh t~ v-> 'ct ~t N N O N O O t~ O ~t ~n oo 'd^ O Oi O~ cri Sri o Oi oo ~D ~t ~t N O~ ~t m M N N N N N ..-a b9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 oo~oooooooc~o O O Oi iri O N N oo N O O O O~ 00 ~t ~O O DO M O ~/"~ \p .~ M v1 Ol In [~ M \D ~ \p N N r.. ..r .-i .r .--~ ,...i 0 •~ B ° a? ? ?' CA ,~ ~U oU.~U.3 '~ ~ ^ ~ a, .~ n. rt., c. ~ y .~ ca ' a a, ~ o ,.°~~ a, ~ n. o 0 wdv~Uv~d~ndw~ ~y .y a, it ~ •. Lam.. .~.~ ~ ~ ~ ~ tom' ~U ~ cv ~ U .-d a ~ ~ ~ ~ o 0 ~v~t=~d5~-~'w~C7 0 ~_ o~ M O 64 O O O N O H a~ b U o~ , • rn O V'1 O O o y ~ .~ ,~ O ~ ~ N N ~ z~ w a ~ 0 U •~ N ~ ti h •~ ~ ~ •yO ~ ~ ~ ~ ~ ~Q " '~~-' DC w _ .h o y o H ~ ~ '" ~ ~ o O v N U +' ~ N ? to h ~~-d ~ ~ w ~ ~ :z ~~~ ~ • U ~ +~ ~ ,~ ~~ w p ~ ~o.~ .~ „ o ~~•~ o d w w w U ~ ~ ~ h o w ~ ~ '~ U -' ~ p o ~ E~ ~ °D ~ o • ~ [~/~ VJ O b Y ~ +-' r V ~ p ~ ~ b °' ~, ~ ..° N ~ ri o •..~ c ~ ~ j "O -d •~ ~' ~ Y C '~ .~ b o U ~ m ~ • ~ ~ o ~ a> ~ y ~ w ~ o; ~ u ~ ~ ~' ~' ~ U . O ~ ~ y D o w , ~ ~ a~ a ~ S ~ ~ o•-~ ot~~n oo~-~~ro "'~ C ~ C O ~ 00 ~ '~ ~ M O [~ [~ 'Ct "" O v •~ O H .V., 4-~ = O ~ ~~-, Q~ O .-i O~ O Q~ ~--i O O O~ O~ O .-a ,--+ ~--~ ~ o U o ~ v~ [~ N O N M o0 00 ~n d' ~+ O [~ N M M O M [~ ~ O~ w~ ct• O '•-~ 00 N N M M oo ~ O ~ 00 ~ [~ ~ V~ `O O~ ~--~ O~ 01 .-~ O U s~ H O W H x x U ~I W H h--I V • v C/1 0 H U W a 0 U Q ~ as C7 .~ z~ w..a v aw H ~ H Z CC a C/] W rl di U W a 4-r M O~ l~ N O~ -••a .--~ 00 ~ O G [~ N D1 [~ '~ M O O~ N N O ~ ~ ~ N O~ O [~ t~ O ~ •-+ 00 ~n .~ , p ~ , ~ N N N N ~--~ .--~ ,--+ .a: ~ O O ~ ~ U ~ss ,,-+ by ~ ~ ~ N O, M o0 O t~ O~ 00 ~ Li U '~f' 00 t~ ~O o0 00 00 00 00 01 a~~ a~rno,o,o~o,rno,rno~rn U ~ ~ a ~ U O M '~ N~ oo [~ M oo N~ O ~ ~ y M V'~ d' d' 00 ~ ~O ~D O \O .-~ a~ N oo O ~D ~t O~ ~--+ N oo ~n • ~ 00 \O l~ V') ~ V'~ O~ •--~ Q1 Q\ U ~ ~ •-.' O U b4 O ~D o0 ~D ~ O O~ ~ t~ ~D O ~ v'~ 'd~ N oo .~-~ d- '-+ ~--~ o0 ~ ~ Q1 N co ~'i O M ~ O~ v'> .-.~ ss 0 v . ~ G ~ _ y ~ h O b ~ '~ O V ~~ O O ~ ~ V ~ O~ O~ O~ O~ O O O 01 U 01 01 01 D\ O O O O Q CI~'~' ®~' ~'ALC®N ]EIEIG~'I'S,1V.IINNES®TA G~l~lT'I'A~'I®N 4F LEGAL DEBT' 1VIARGIN December 3I, 2003 Estimated Market Value Debt Limit: 2% of Market Value Total Bonded Debt Deductions: 1. Special Assessment Bonds 2. Tai; Increment Bonds Total Debt Applicable to Debt Limit Legal Debt Margin, December 31, 2003 Source: Cite of Falcon Heiglzts financial records. $ 2,440,000 $ 1,085,000 1,355,000 2,440,000 Table 10 • ~ 269,679.600 $ 5,393,592 $ 5,393,592 • 88 ~ r-+ N Q~ O~ M M Q~ O~ O O .~i ~ y ~ N N ~t et M ~n ct' ct M N ~ ~ ~" O .,.., GQ ~ cC zQ~ H 0 ~/2 H x r ~~ w 0 H U E"{ ~t d U H O H • s U .fir ~1 H td a ~, o ~ ~ ~ c} N ~ M O t~ O M [~ 00 ~ Q ~ ~ ~ '~t d- oo l~ ~t O~ O~ N O O 'd ~ ~ 'd M ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ^C ~ .~ ~ O ~ O \D r-+ ~D o0 +--i M M M 'C l~ l ~ 01 00 M O~ 00 ~f 0 ~ 0 ~ to \O oo N M M N ~--a M N Z, ~ Q ~ O ~ N oo ~ ~ ~ t ~ ~ O ~ ^y A N N ~--~ N N N ~--~ '--~ 69 "'~3 '~ ~t ~C N '~t O M O~ 00 ~ }-' ~ y d' 01 M o0 M N 00 ~O ~C l0 -~ N N O~ \D O~~ O O Q w V .-i ~--i 00 M N Cl' ~~ M L~ ~ ~ M l~ M N N~ •-+ M N~ ~ , ~ ,-, ~ ~t M N .-^ M N O~ N op r~ ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ^d O O O O O O O O O O ~ .~ p O O vi U'i O N O O O O O ,., y ~ ~ N ~ ~ 'mot d' try \O '~t Q o0 ~ 00 'dam O~ N O~ ~ O~ ~ N N M M N ct M M N N N oo N --~ oo \p ~ try M o0 ,~ 00 to N O~ .-+ M d' C~ ~ N ~ -_ v'1 \O t' ~ N O~ l~ O O~ O O~ ~ G~ l~ [~ M M 00 O~ 01 M ~--~ O h ~ 01 Q1 M 01 ~ 00 01 l~ 00 ~ '~ M ~ Cl' ~ M M d~ 00 01 N '~ M M M M M M M M N M b9 O l~ O O O O N O O O L: oo O~ O O~ O [~ 0 0 0 O M N M M M '~ In ~p lp \D .--i O a ~ ^-~ ~t ~ ~D [~ 00 01 O --+ ~ ~ O~ O~ 01 Q~ 01 O~ O O O O ~ ~ 01 01 O~ O~ O O O O w 'r-' .~ .-~ ~--~ ^+ ~-+ N N N N C/~ ~, n U H .~ CVd U c~ H O -b a~ U CS3 N ;~ b N O V ~U h x .~ ~_ O V ti V N V O~ CITY OF FALCON ~EIGFITS, l~NNESOT`A RATIO OF ANNIJAI., DEBT SE12irICE E~ENDITIJI2ES FOR OENERAI., OBI..IOATION BONDED DEBT T® TOTAL GENERAL GOVERNMENTAL, E~ENDI'I'L1RES ci> Last Ten Fiscal Years Total General Fiscal Obligation Year Principal Interest Debt Service 1994 $ - $ - $ - 1995 - - - 1996 - - - 1997 - - - 1998 - - - 1999 - - - 2000 - - - 2001 - - - 2002 - - - 2003 - - - Total General Governmental Expenditures ~'~ $ 1,913,622 1,596,155 1,591,120 1,694,103 1,853,764 1,742,872 1,777,552 1,992,174 2,062,021 3,832,129 Table 12 • Ratio of Debt Service to General Governmental Expenditures N/A N/A N/A N/A NIA N/A N/A N/A N/A N/A ~1~ Does not include tax increment bonds nor general obligation bonds which are partially supported by special assessments. (2) Includes General, Special Revenue, and Debt Service Funds. Source: City of Falcon Heights financial records. 90 CITY OF FALCON HEIGHTS, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT • December 31, 2003 Table 13 Governmental Unit Gross Debt ~'~ Sinking Funds Net Debt _ Cit Percent y's Share Amount Direct: City of Falcon Heights $ 2,440,000 $ 817,061 $ 1,622,939 100.00% $ 1,622,939 Overlapping: School Districts: ISD #623 42,475,000 21,857,223 20,617,777 7.27 1 499 284 ISD #916 Ramsey County: 16,120,000 396,836 15,723,164 0.81 , , 127,365 Ramsey County 164,767,000 - 14,692,114 150,074,886 0.94 1 404 913 County Library 1,580,000 1,724,321 (144,321) (1.79) , , (2 577) .Metro Watershed 1,741,888 - 1,741,888 0.00 , Valley Branch Watershed Debt (Z) - - - 0.00 _ Metropolitan Agencies: Metro Council 845,710,429 72,992,986 772,717,443 0.15 1 183 292 Metro Airports , , • Commission Total 411,956,000 96,119,118 315,836,882 0.15 483,653 Overlapping Debt 1,484,350,317 207,782,598 1,276,567,719 4,695,930 Total Direct and Overlapping Debt $ 1,486.790.317 $ 208,599,659 $ 1,278,190.658 $ 6,318,869 ~l~ Gross debt totals include bonds which are financed by ad valorem tax levy, G.O. Revenue financing and special assessments. Metro Council has G.O. Revenue debt of $ 658,955,429 and Revenue debt of $ 12,730,000. Metro Airports Commission has G.O. Revenue debt of $ 344,130,000 and Revenue debt of $ 1,339,695,000. (2> Debt issued by Washington County for which Ramsey County has partial liability because of a Joint Powers Agreement between counties. Source: Department ofProperty Records and Revenue -Ramsey County. r~ 91 CITY OF FAL,C®N I~ICPITS, li~IIlVNES®'I'A Table 14 Fiscal Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Population ~l~ 5,380 5,297 5,300 5,300 5,350 5,400 5,572 5,600 5,600 5, 600 I)E1VI®GI~APIIIC STATISTICS Last Ten Fgseal Years Median Age ~l~ N/A N/A N/A N/A N/A N/A 30.9 N/A N/A N/A 2000 Population By A~-e Groups (2> Age Population Percent 0-19 years 1,693 30% 20-44 years 2,237 40 45-64 years 965 17 Over 64 years 677 12 5.572 School Enrollment District #623 6,763 6,791 6,780 6,73 8 6,680 6,553 6,560 6,558 6,353 6,338 • Unemployment Rate ~'~ 3.2% 3.0 3.2 2.7 2.1 2.3 2.9 3.3 42 4.4 Housing Units (2) Family 1,434 Nonfamily 669 Total 2,10 Source: ~l~ Population figures, other than census year, are estimates furnished by the Metropolitan Council. (2) 2000 census - US Department of Commerce. c3) Annual average unemployment rate, Ramsey County. • 92 '~ ~~~~~~~~~~Q ~ 0~~~~~~~~.~ ~ zzzzzzzzzz Q ~" O :~ ~r O U .... w r''., O 'S~ .~ H 0 z H O G W ~1 H H U • i.r CC .~ e~ V ~I E-~ h ~ Q1 N O d' M M N o, N ~ ~t *-+ ~ ~t M lp to h Q> O l e et N an ~ u1 N O^ M O~ ^+ ~D ~C M ~ to ~ 00 ~ M M fit' ~--~ [~ 01 \O O~ l ~ O M O .-~ ~--i Nj ~-.~ ~ .-•i .-+ I~ O d' M O~ .--~ 'fit N O [~ d' ~-+ O 0 0 0 0 0 0 0 0 0 0 O~ d' 'fit O O O O O O O .~ y O U ...~ U s~ ~ O ~ M 00 ~--~ M M l~ d' O ~n Mori~~r~~~o--~ ~D a, r-+ ~--~ M D, 00 0o N h ~--+ N N N oo ~ ~ .-r l/') I~ ~ ~ h N N ~ 00 m ~ ~ ~t h ~ "" zo O U O O O O o0 D\ `O M N~ M O O~ h N N ~-+ \O O l~ O ~ ~--i O~ h O~ O ~G 00 ^~ ~-+ O ~-+ ~--+ N U'i O~ oo ~D N ~ M ti" '~t' d' [+ h DO d' ~ 00 O W N d' M O ~--~ ~-+ 00 M O~ f"~ ~O oo O ~ M d' '~t' O~ h `D ~D ~ h h 00 Q1 O *-+ M \O b9 ~zzzzzzzzzz .~ ~'z'z'zzz'zzz'z'z 'U ~ ~d-~n~o~ooo~o.-yNM ~o~,~~rnrnrn°oo°oo° O U CJ m .~ _~ N 0 a 4-i O .~ 'C .~ ."". W b c~ 'CS N h ~ r-a .~ ~~ ~_ ~, U o c~ ~ ~ ~ ~ ~ cUd O ~ ~ a~ W H N '~ O V .~ ao 0 U 0 cY, rn ~I'I'~' ®F F~~.LC4N ~IOPT~'S,1~NES®TA 'T'able 16 SC~IDUUI,,E ®F INSgTRANCE IN I+~DRCL December 31, 2003 • Type of Coverage Coverage Amount Blanket Building and Contents $ 2,244,990 Mobile and Cable Equipment 83,431 Errors and Omissions 1,000,000 Commercial Crime -Money and Securities 100,000 Employee Faithful Performance/Malfeasance 100,000 General Liability: Bodily Injury and Property Damage 1,000,000 Personal and Advertising Injury 1;000,000 Products and Completed Operations Aggregate 1,000,000 Sudden and Accidental Pollution Aggregate 1,000,000 Excess Liability Policy ($10,000 Deductible) 1,000,000 • Bonds: Finance Director 100,000 Clerk-administrator 100,000 Open Meeting Law Coverage 50,000 Comprehensive Automobile 1,000,000 Worker's Compensation: CToverned by Minnesota State Statute statutory Employee`s Liability (Bodily Injury by Accident) per accident aggregate to 1,000,000 Employee`s Liability (Bodily Iujuryby Disease) -Policy Limit 1,000,000 Employee's Liabilit~~ (Bodily Injury by Disease) -Individual 1,000,000 Year 2000 Claim 25;000 per claim / 25,000 aggregate Source: Cit)~ of Falcon Heights financial records. U 94 CITY OF FALCON HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS • December 31, 2003 Date of Incorporation Adoption of City Charter Form of Government Number of Employees (Excluding Fire): Full-time Part-time Area in Square Miles City of Falcon Heights Facilities and Services: Miles of Streets: Streets and Alleys Trunk Highways Paved -County Number of Street Lights Park and Recreation: Parks Park Acreage Tennis Courts • Basketball Courts Softball Fields Fire Protection: Number of Stations Number of Volunteer Firefighters Number of Emergency Vehicles Number of Calls Answered Police Protection: Sewage System: Miles of Sanitary Sewers Miles of Storm Sewers Number of Service Connections Treatment Disposal Through Water System: Miles of Water Mains Number of Service Connections Number of Fire Hydrants Source Population: 1970 Census 1980 Census 1990 Census 2000 Census April 1, 1949 January 1, 1974 Council/City Administrator 5 3 2.28 18.55 0.75 4.97 210 3 18.07 2 3 Table 17 1 18 3 92 Contracted from City of St. Anthony Village 14.7 4 1,234 Metropolitan Council Environmental Services 14.5 1,230 146 St. Paul Water Utility 5,530 5,291 5,380 5,572 Source: City of Falcon Heights financial records. 95 POLICY H2 • 5/19/04 ITEM: Presentation from the Metropolitan Mosquito Control District (MMCD) SUBMITTED BY: John McLean, Public Information Officer REVIEWED BY: Heather Worthington, City Administrator EXPLANATION: Summary: John McLean, Mosquito Control District's Public Information Officer, will make a presentation regarding the MMCD's mosquito control activities in Falcon Heights this spring and summer. ACTION REQUESTED: • Presentation Questions from Council and audience • Sd POLICY H3 • 5/19/04 ITEM: MSRA Back to the 50's Weekend Proclamation SUBMITTED BY: Sandy Felde, MSRA EXPLANATION: Summary: Every June, the Minnesota Street Rod Association (MSRA) holds their "Back to the 50's Weekend" at the State Fairgrounds in Falcon Heights. MSRA has asked the Council to adopt the attached proclamation declaring June 17-20, 2004 as "Back to the 50's Weekend" in Falcon Heights. ATTACHMENTS: • Letter from Jerry and Sa /~1_y elde, MSRA Members, on page G • Proclamation on page -~~/-~-- ACTION REQUESTED: • • Adoption of Proclamation S9 Terry a Sandy Felde 8429 Grange Bled So Cage inns, NN 55 16 651-459-2468 May 5, 2004 Ms Heather Worthington Office of the Mayor City of Falcon Heights 2077 W Larpenteur St Falcon Heights, MN 55113 SUBJECT: Proclamation for MSRA's Back to the 50's Weekend Dear Ms Worthington: Thank you in advance for your help in processing this proclamation request by the Minnesota Street Rod Association (MSRA). The date of MSRA's Back to the 50's weekend event at the Minnesota State Fairgrounds, is June 17 - 20, 2004, and I have attached proposed language for the proclamation. Please mail the proclamation when it's ready. I would appreciate having it in hand by Monday, June 7, 2004. If you need any further information on MSRA, the Back to the 50's Weekend or want me to rephrase the proclamation, please feel free to give me a call at work (651-293-0229) during the day or at home (651-459-2468) in the evening. Sincerely, Sandy Felde • MSRA Member !.a • City of Falcon Heights, Minnesota Proclamation WHEREAS, the Minnesota Street Rod Association (MSRA) is the largest street rod association in the United States with an all-volunteer membership of over 14,000 family members owning street rods, classic, collector, and vintage cars. WHEREAS, MSRA continually promotes a better understanding of the hobby among non-street rodders, exchanges knowledge and ideas with members and non-members in the safety and proper construction of collector cars, and provides guidance in overall, safe vehicle operation; and WHEREAS, MSRA, afamily-oriented association, continually strives to include, educate, guide and learn from all generations and serves as a mentor for young people (including subsidizing a sizeable youth scholarship program) thereby strengthening family relationships; and WHEREAS, MSRA participates in community, political, charitable and promotional events • contributing extensive hours to the communities across the State of Minnesota; and WHEREAS, the Back to the 50's event welcomes over 10,000 registered collector vehicles from across the nation and several foreign nations and nearly 100,000 spectators financially impacting the City of Falcon Heights and the Twin Cities economy by millions of dollars; and WHEREAS, MSRA is presenting its family-oriented 31st Annual Back to the SO's Weekend, June 17 - 20, 2004 at the Minnesota State Fairgrounds in the City of Falcon Heights; NOW, THEREFORE, I, Susan Gehrz, Mayor of the City of Falcon Heights, do hereby proclaim the weekend of June 17 - 20, 2004 to be MSRA's 31st Annual Back to the 50's Weekend IN WITNESS WHEREOF, I have hereunto set my hand and cause the Seal of the City of Falcon Heights to be affixed this 19`~ day of May, 2U04. Susan L. Gehrz, Mayor ci ~ ~G LJ • Ms Heather Worthington City Administrator Falcon Heights City Hall 2077 West Larpenteur Ave. Falcon Heights, MN 55113 Dear Heather: 1910 North Snelling Drive Falcon Heights, MN 55113 May 10, 2004. MAY ~ 2 2004 In January I spoke with you about a large advertisement that had been placed in front of my home. Last Wednesday the bus bench with the advertisement was removed. I want to express my appreciation to you for working this issue and addressing my concerns. Sincerely yours, ~~ Patricia E. Hansen Home - 651-645-7964 C: