HomeMy WebLinkAbout05-03-05 CCMPMayor:
Dean Johnston
Council members:
Rita Conlin
Steve DeLapp
Liz Johnson
Anne Smith
Please read:
Lake Elmo City Council
Tuesday
May 3, 2005
3800 Laverne Avenue No.
Lake Elmo, MN 55042
777-5510 777-9615 (fax)
Since the City Council does not have time to discuss every point presented, it may appear that
decisions are preconceived. However, staffprovides background information to the City
Council on each agenda item in advance; and decisions are based on this information and
experience, In addition, some items may have been discussed at previous council meetings.
If you are aware of information that has not been discussed, please fill out a "Request to
Appear Before the City Council form; or, if you came late, raise your hand to be recognized.
Comments that are pertinent are appreciated. Items may be continued to a future meeting if
additional time is needed before a decision can be made.
Agenda
City Council Meeting Convenes 7:00 PM
Pledge of Allegiance
1. Agenda
2. Minutes:
3. PUBLIC INOUIR1ES/INFORMATIONAL:
A. PUBLIC INQUIRIES:
B. PUBLIC INFORMATIONAL:
4. CONSENT AGENDA
A. Resolution No. 2005-044:Approving
Claims
5. FINANCE
A. Audit Report
B. SAC & WAC Charges odeup gmorber
C. WnoL Ptiefeet-Atotifioatiou
6. NEW BUSINESS
A. Community Improvement Commission
Appointment
B. Parks Commission Appointment
April 15, 2005
Public Inquiries/Informational is an opportunity for citizens to
bring the Council's attention any items not currently on the
agenda. In addressing the Council, please state your name and
address for the record, and a brief stunmary of the specific item
being addressed to the Council. To allow adequate time for
each person wishing to address the Council, we ask that
individuals limit their comments to three (3) minutes. Written
documents may be distributed to the Council prior to the
meeting or as bench copies, to allow a more timely presentation.
Those items listed under the Consent Calendar are considered to
be routine by the City Council and will be enacted by one
motion under a Consent Calendar format. There will be no
separate discussion of these items unless a Council member so
requests, in which event, the item will be removed from the
general order of business and considered separately in its normal
sequence on the agenda.
K. Schaffel
C. Appointment of Rod Sessing to the
Planning Commission
D. Records Retention Schedule
7. MAINTENANCE/PARK/FIRE/BUILDING:
A.
8. CITY ENGINEER'S REPORT:
A. Escrow Reduction - Tapestry
B. 2005 Street Repairs — Hilltop Avenue
9. PLANNING. LAND USE & ZONING:
A. Comprehensive Plan Update - Verbal
10. CITY ATTORNEY'S REPORT:
A.
11. CITY ADMINISTRATOR'S REPORT:
A.
12. CITY COUNCIL REPORTS:
A. Mayor Johnston
B. Council Member Conlin
C. Council Member DeLapp
D. Council Member Johnson
E. Council Member Smith
Lake Elmo City Council Agenda
May 3, 2005
Page 2
S. Lumby
Tom Prew
C. Dillerud
CLEAN UP DAY: May 2 8-Noon
LAKE ELMO CITY COUNCIL MINUTES
APRIL 19, 2005
1. AGENDA
2. MINUTES: April 5, 2005
3. PUBLIC INQUIRIES/INFORMATIONAL:
A. Public Informational: Citizen Award by Commander Tuthill
B. Jim Kelly, Dept. of Health, Tablyn Park Area Water. Update of proposed
public meeting.
C. Lakewood Evangelical Free Church
4. CONSENT AGENDA:
A.(1) Resolution No. 2005-040 — Approving Claims
(2) Resolution No. 2005-041 — Approving Claims
B. Clean Up Day Rates
C. Plow Truck Purchase
5. FINANCE:
A, Monthly Operating Report
6. NEW BUSINESS:
7. MAINTENANCE/PARK/FIRE/BUILD
A. Update on Building Department \ctiviti JimMeNamara
B. Accept Fire Study Report:Chief Malmquist
8. CITY ENGINEER'S REPORT: A. Approved Approved Stop Sign at the Inte
B. Update on Water Tower Sits t
C. Phase II Watermain: OrtZe for bids, Resolution No. 2005-042
9. PLANNING, LAND L FZO.
A. Preliminary Plat, C ehe n Amendment Rezoning, Conditional Use
Permit and OP Concept Plan Dcer Gieii. i.akcvod Evangelical Free Church
(Continuation) ---z1
B. Resolution Ni. 20 proving Placement of a garage structure in front
of the primary trucnircOkasun, 1 Lake Jane Trail
C. Zoning Ordinance Test A endments — Fence Regulation/Standards, Ordinance
No, 97-155
D. Comprehen we. Plari Amendments — Planning Commission Recommendations
E. Comprehensive Plan — Consulting Services
10. CITY ATTORNEYS REPORT:
11. CITY ADMINISTRATOR'S REPORT:
A. Parks Commission Update
12. CITY COUNCIL REPORTS:
A. Mayor Johnston:
(1) Proposal by Jim Briemeyer:Objectives for City Administrator
(2) Ground rules for Public Meetings
s Trail and Hilltop Avenue
LAKE ELMO CITY COUNCIL MINUTES APRIL 19, 2005
Mayor Johnston called the Council meeting to order at 7:00 p.m. in the Council
chambers. PRESENT: Conlin, Johnston, Johnson, DeLapp, City Engineer Prew, City
Attorney Filla, Building Official Jim McNamara, City Planner Dillerud, Finance Director
Tom Bouthilet and Administrator Rafferty. ABSENT: Council member Smith
1. AGENDA
ADD: 11A, Update on Parks Commission
M/SP Johnson/DeLapp - to approve the April 19, 2005 City Council Agenda, as
amended. (Motion passed 4-0).
2. MINUTES: April 5, 2005
M/S/P Johnson/Conlin - to approve the April 5, 2005 City Council minutes, as amended.
(Motion passed 3 -0-1Ab stain:DeLapp).
3. PUBLIC INOUIRIES/INFORMATIONAL:
A. Public Informational: Citizen Award by Commarideauthill
Sheriff Steve Pott presented Vernon Shakleton, an AftoivreSident, thI---Life Saving Award
and Medal of Valor, one of only three awards given out by the Sheriff s;bffice in 10
years. Mr. Shakleton saved two people from a flatedtcar last September on
Manning Avenue in Lake Elmo.
Susan Kane, 4372 Little Bluestem Trail, introduced h
developmentally delayed and asked the CoiMei
working on the City's Comprehensive Plan, b*
B. Jim Kelly, Dept
Public meetiidi
Jim Kelly, MN Dept,,,,,,
Elementary SchoolA Tu
Tablyn Park Are Water and
C. Lakew
, Hanna, ho is
sideration, while they are
developmentally delayed.
*Park Area Water. Update of proposed
hold a Community Open House at the Lake Elmo
5-9 p.m. to provide public inforrnation on the
-questions.
1Evan1ica1 Free Church
Kirby Spike, Lake Elmo resident and Chairman of the Leadership Board at Lakewood
Church read a statement that is made part of these minutes.
Since there was not a full Council in attendance, Chuck Palmer, Lakewood Evangelical
Free Church, asked for an extension of its agenda item to April 28th, 6 p.m, based on the
availability of their attorney.
M!S/P Johnson/Conlin - to delay consideration of the Lakewood Evangelical Free Church
applications until a special meeting of the Council on April 28th, 6 p.m., if the applicant's
attorney is available or May 3"' Council meeting. (Motion 4-0).
LAKE ELMO CITY COUNCIL MINUTES APRIL 19, 2005 2
Attorney Filla noted by the City saying nothing, the City doesn't agree with everything
Mr. Spike is stating. Filla said he would be glad to sit down to discus items with their
attorney.
M/S/P DeLapp/Johnson — to approve the city attorney meeting with the applicant's
attorney to come up with a mutual agreement. (Motion passed 4-0).
Mr. Palmer said the church location and size is non-negotiable, but would be willing to
discuss OP development, the 40 acres undesignated, and how the OP might layout.
Council member Conlin stated that the council has directed staff to look at PF zoning in
the City and where it is appropriate.
4. CONSENT AGENDA:
A.(1) Resolution No. 2005-040 — Approving Claims
MIS/P Conlin/Johnston - to adopt Resolution No. 2005-040,
253, 254, DD396 through DD408, 27153 through 27184
payroll dated April 14, 2005, claims 27185 through 27229 n
$85,828.67. (Motion passed 4-0).
(2) Resolution No. 2005-041 — Approvin
M/S/P Conlin/Johnston - to adopt Resolutio No. 2005O4J, approving claim number
27230, in the total amount of $360.00. (M sse ,...
:,:Abstain:Johnson).
Proving claimr s
numbers
aff
eh er0 used f
total ount of
B. Clean Up Dav Rates
The 2005 Annual Lake Elmo Sprin ay is set for Saturday may 21st, 8 a.m. to
Noon at the Washington Cow e Finance Director provided a proposed
rate schedule. He exp1ained4it thee to our residents are designed to offset
the cost of disposal. The city doe not profit from the rate charged. This event is a service
provided to the conirniiy and will discourage illegal dumping on the roadways.
M/S/P Con1mIJohton - to approve the'2005 Clean -Up Day Rates as proposed by the
Finance Director. lotion passed 4-0).
C. Plow Truck Pilichat
The Finance Director repotted the 2005 Capital Improvement Plan (CIP) has scheduled
the 1986 Snow/Dump Truck for replacement. The City's Fixed Asset Management
Program (FAMP) guidelines suggest trucks in this category be replaced in the 8-10 year
range. The Maintenance Advisory Committee has reviewed the specifications for the
new truck and approved this request. Due to the low trade-in cost for the 1986 truck, the
MAC recommended the City sell the vehicle on the open market through the bidding
process with a $10,000 minimum. If the minimum bid amount is not received,
consideration should be given to keeping the truck as a back-up for light use/sanding.
The City has received a quote through the State Cooperative Purchase Venture Program
in the amount of $120,054 for the truck and plow. Not included in the above quote was
vehicle registration, decals and radio installation. The estimate for additional expenses is
LAKE ELMO CITY COUNCIL MINUTES APRIL 19, 2005
approximately $4,218.05. Al! other items included in quote. Total cost for the truck
replacement should be no more than $124,272.05. The CIP has set aside $130,000 for
this acquisition.
M/S/P Conlin/Johnston - to approve the purchase of a 2005 Fund Plow/Dump Truck not
to exceed $124,272.05. (Motion passed 4-0).
5. FINANCE:
A. Monthly Operating Report
The Finance Director reported the electric utility account may be in the future an
amendment to the budget. Council member DeLapp said the installation of lights
addressed for benefit of residents will be completed by the end of the year.
6. NEW BUSINESS:
7, MAINTENANCE/PARK/FIRE/BUILDING:
A. Update on Building Department Activities:Jim Mel4amara
The Building Official reported there were one new residential building, Hnit and two
commercial building permits issued for March, 205'and attlhded an informational
meeting on radon at the University of MN. He advised thaae municipal code states
small farm animals should not be kept on small lots. The Council responded they will
talk about this after the Comprehensive Plah hasbeen eted.
B. Accept Fire Study Report:Chief MaIrdOuist
„
Fire Chief Malmquist gave a !:iarh1 the FProtection Needs Study report
completed by DSU Research ind askedtheQ9un11 to accept this report. Administrator
Rafferty pointed out this fire study report is a professional study conducted that will
guide us into the futur
M/S/P Conlin/D*pp — to acct and file the fire study report, March 2005 by DSU
Research, Fire Protection Needs fptudy. (Motion passed 4-0.)
8, CITY ENGINEER'SAPORT:
A. Approved Stop Signgal the Intersection of Highlands Trail and Hilltop Avenue
The City received a request from Michael Maas to reconsider the new stop sign at Hilltop
Avenue and Highlands Trail. The City Engineer and Public Works Supervisor
recommended that a stop sign be installed on the westbound leg of this "T" intersection.
This was based on the lack of sight distance at the intersection and the increase in traffic
that has occurred.
The City Engineer explained that although the resident presents arguments against this
stop sign and looks at other method of traffic control, he still believes this is the best
location for a stop sign. The City Engineer recommended the City not make any traffic
control changes to this intersection at this time. The City is scheduled to overlay Hilltop
Avenue in 2005 and will look at traffic calming methods as part of that project. The
LAKE ELMO CITY COUNCIL MINUTES APRIL 19, 2005 4
consensus of the Council concurred with the City Engineer's recommendation that this is
the best location for the stop sign at Hilltop Avenue and Highland Trail.
B. Update on Water Tower Sites
In his memo dated April 14, 2005, the City Engineer reported on the estimated costs and
revised water tower locations. Other sites considered for the water tower include two
locations near the public works building and one on the 3M property.
Administrator Rafferty indicated he would hear in three weeks whether or not the 3M
site could potentially be available to us.
An informational meeting for the residents will be held by the Council on the selected
site before a decision is made by the Council.
C. Phase II Watermain: Authorize for bids, Resolution No. 2005-042
In his letter dated April 14, 2005, the City Engineer reporte plans d specifications are
completed on the second phase of the Water Systems Inteidbnnect P�ect. This phase of
the project installs 16-inch water main from the intersection of Tapes ve and 45th
Street to the existing Public Works building, This, ioject wait -allow the dity to
disconnect from the City of Oakdale's water systenfm the tke Jane area.
The City Engineer recommended approval
for bids,
orizing the advertisement
M/S/P DeLapp/Johnson - to adopt lution 005-042, A Resolution Approving
.. :
Plans and Specifications and Ordering vertiseMent for bids for the Water Systems
Interconnect Phase II Project(Motion : _. ''.
,-,
Tom Prew will be cog
would be.
d let them know what the connection fee
9. PLANNING, :AND USE SeZONNG:
A. Preliminary Plat Comprolensive Plan Amendment Rezonina, Conditional Use
Permit and OP Concept Plawl,teer Glen, Lakewood Evanaelical Free Church
(Continuation) — See Agenda Item 3C.
The Council tabled these applications on April 5 to enable the City Attorney time to
review a 12-page letter that has been presented to the City by the applicant's attorney late
afternoon of April 5, (the day of the Council meeting). The applicant went on record
agreeing to extend the City's review period to August 19, and the Council tabled the
application pending a report from the City Attorney regarding the applicant's letter of
April 5.
LAKE ELMO CITY COUNCIL MINUTES APRIL 19, 2005
B. Resolution No, 2005-043 Approving Placement of a Garage Structure In Front of
the Primary Structure:Gleason, 8211 Lake Jane Trail
Harvey Gleason, 8211 Lake Jane Trail, is requesting Council approval to allow relocation
of an existing 24' x 26' accessory structure from one side of the lot to the other. The
accessory structure (formerly the only garage on the site) is now located close to the
street than the house, and would continue to be in front of the house in the proposed
location. The City Code prohibits detached garages or accessory buildings located nearer
the front lot line than the principal building, The Council may waive this provision by
adoption of a Resolution,
The City Planner explained that the proposed garage location will be no more intrusive
than the present location. It also appears that the garage in the proposed location will
comply with R-1 structure set back standards, The applicant does not propose driveway
access to the accessory structure at the proposed location.
M/S/P DeLapp/Johnson - to adopt Resolution No, 2005:043'approv relocation of a 24'
x 26' accessory structure, per plans staff dated April 1.4,2005, Harvey '6 son, 8211
Lake Jane Trail, (Motion passed 4-0).
C. Zoning Ordinance Test Amendments - Fence Regidation/Standards, Ordinance
No. 97-155
r....
The City Planner reported the Planning Comniission held a:public hearing at its April 11,
2005 meeting and adopted a motiontO transmit.crtain amendments to the fence
regulation/standards of the Zonin- • Mance teAhe City Council without a
recommendation. Those amendments --en initiated by the Finance, Legal, and
Legislative Council Committe-eift„
The proposed amendni ern :ILIdrcs Iiice.. as screening, both adding standards to the
traditional screening- fence provlions. and introducing the new concept of "Extended
Living Area" fenciThe Council amended the Fence Ordinance 97-155 as follows: 1.
The area enclosed hy ouldoor extended living area fencing shall not exceed an enclosed
area of 500 square feet,; a 0 Fence utilized to enclose an outdoor extended living area
shall be extended to a point not more than 6 inches from the principal structure at one
fence termination point.
M/S/P Johnson/DeLapp - to adopt Ordinance No. 97-155, as amended 4-19-05, amending
the text of the Zoning Ordinance regarding regulations and standards for fencing.
(Motion passed 4-0).
D. Comprehensive Plan Amendments - Planning Commission Recommendations
The City Planner reported the Planning Commission conducted a public hearing
regarding amendment to the Comprehensive Plan responsive to the City/METC
Memorandum of Agreement (MOA), The hearing addressed the Planning Policy, Land
LAKE ELMO CITY COUNCIL MINUTES APRIL 19, 2005 6
Use Text, Land Use Plan, and Development Staging elements of the required
Comprehensive Plan amendments.
The drafts of the Plan elements now completed (including the April 11 revision) were, on
April 11, recommended to the City Council for adoption on a Planning Commission vote
of 9-0.
M/S/P Johnson/DeLapp — to accept the Comprehensive Plan Amendments now
completed and to file the Planning Commission's Recommendations. (Motion passed 4-
0),
E. Comprehensive Plan — Consultina Services
The City Planner reported TKDA had presented a proposal and cistimate for
providing anticipated consulting services related to the Cornprehnsive Plan
modifications required per the Memo of Understanding witwi4ithe Mtropohtan Council.
The proposal/estimate is broken down as follows:
1. Transportation/Traffic $29,052
2. Water System Plan 9,100
3. Sanitary Sewer System Plan 5,000
4, Graphics/Land Use Plan 28
M/S/P Johnson/Conlin — to approve the Authczaton for Professional Services with
TKDA dated March 18, 2005 for It preliffiSIve Plan update in an amount not to
exceed $70,000, Funding shall 0 from the 2005 General Fund Budget
•
(Planning & Zoning); and u $60,0QQf'rom the 2005 General Fund Surplus. (Motion
passed 4-0).
10. CITY ATTOR1
11. CITY ADMRS4STRATC1P.
A. Parks Commission
ate:
Administrator Rafferty reported the Parks Commission decided what type
of amenities and activities the Commission would like for the future. They picked
several parks and the Commission will be coming back with a final report sometime in
2005. The City will not be looking at any parks for future public facilities.
Council member DeLapp recommended the Parks Commission be given the easement for
Ridge Park,
LAKE ELMO CITY COUNCIL MINUTES APRIL 19, 2005 7
12. CITY COUNCIL REPORTS:
A. Mayor Johnston:
(1) Proposal by Jim Briemeyer:Objectives for City Administrator
At the April 12th Council Committee, the members reviewed the Briemeyer proposal at a
cost of approximately $750 plus up to S200 in expenses. The Council will proceed with
this item after the Comprehensive plan has been completed.
M/S/P Johnson/ DeLapp — to accept the proposal by Jim Briemeyer for consulting at a fee
of $750 and up to $200 in expenses. (Motion passed 4-0). Council member Council asked
that Mr. Briemeyer provide all the materials at no additional cost so the City could own
them for the future.
(2) Ground rules for Public Meetings
Mayor Johnston provided ground rules that will be attachedtO
front of the City Council or Planning Commission meetrngs
#3 that "no personal attacks, no innuendoes" be delete,.
Council member DeLapp added that constructive mon
equest to Appear in
OUncil asked that in
Council member Johnson congratulated L 10 resident Sheriff Steve Pott on his
new appointment as Washington County Shrif
Adjourned meeting at 8:45 p.m.
Respectfully Submitted by
Resolution No. 2005-O4iain 'C
Resolution No. 2005',.,;
Clanus
Resolution No. 20 -042 PhaseJ1 Watermain:Authorize for Bids
Resolution No. 2 57043 Approve Placement of a garage structure,Gleason 8211 Lake
Jane Trail
Ordinance No. 97-155 F nc Regulations/Standards
LAKE ELMO CITY COUNCIL MINUTES APRIL 19, 2005 8
CITY OF LAKE ELMO
WASHINGTON COUNTY, MINNESOTA
RESOLUTION NO. 2005-044
RESOLUTION APPROVING CLAIMS
BE IT RESOLVED THAT Claim Numbers 255, 256, 257, DD409 through
DD418, 27230 through 27241, were used for Staff Payroll dated April 281h, 2005;
claims 27242 through 27290, in the total amount of S143,391.79 are hereby approved.
ADOPTED, by the Lake Elmo City Council on the 3rd day of May, 2005.
ATTEST:
Martin J. Rafferty
City Administrator
Dean A. Johnston
Mayor
Accounts Payable
Computer Check Proof List
User: administrator
Printed: 04/28/2005 - 3:45 PM
Invoice No Description
Vendor:ALEXAIR Alex Air Apparatus, Inc
9085 Drager Juniper Hoses - Fire Dept
Check Total:
Vendor:ALLBLAC Allied Blacktop Co.
8067 Street Sweeping - Spring 2005
Check Total:
Amount Payment Date Acct Number
Check Sequence: 1
62.86 05/03/2005 101-420-2220-42210
62.86
Check Sequence: 2
14,152.00 05/03/2005 101-430-3100-43150
14,152.00
Vendor:ARAM Aramark Check Sequence: 3
629-5704175 Linen - City Hall 56.58 05/03/2005 101-410-1940-44010
Check Total: 56.58
Vendor:ARAMAU ARAMARK Check Sequence: 4
56835092-1 Uniforms - Public Works 67.14 05/03/2005 101-430-3100-44170
Check Total: 67.14
Vendor: ATTWI CINGULAR WIRELESS
023-2750230 Floater Phones - Fire Dept.
Check Total:
Vendor:AVAYA AVAYA Inc.
2721018754 Monthly Telephone Maint.
Check Total:
Vendor:BATTYPL Batteries Plus Woodbury
32-98428 Parts - Roller - Public Works
Check Total:
Check Sequence: 5
20.51 05/03/2005 101-420-2220-43210
20.51
Check Sequence: 6
150.36 05/03/2005 101-410-1940-4-4040
150.36
28.22 05/03/2005
28.22
Check Sequence: 7
101-430-3100-42210
Reference
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
AP - Computer Check Proof List (04/28/2005 - 3:45 PM) Page 1
Invoice No Description
Amount Payment Date Acct Number
Vendor:BIFFS Biffs Inc_ Check Sequence: 8
W251718 Portable Rental - Sunfish Lake Park 74.26 05/03/2005 101-450-5200-44120
Check Total: 74.26
VendorBOUTHM MichaelBouthilet
Travel Claim Hotel Fare - Water Op. Cert. -2 emp.
Check Total:
Vendor BURGESS Daniel Burgess
25011 Duplicate Assessment Payment Refund
Check Total:
Check Sequence: 9
657.90 05/03/2005 601-494-9400-43310
657.90
Check Sequence: 10
338.66 05/03/2005 409-000-0000-20200
338.66
Vendor:CARQUEST Car Quest Check Sequence: 11
D377914 Oil Filters, Beams - Parks 26.15 05/03/2005 101-450-5200-42210
D379722 Oil Filters - Public Works 72.30 05/03/2005 101-430-3100-42210
Check Total: 98.45
Vendor:CENTPOW Century Power Equipment
311737 Stud - for tractor - Parks
Check Total:
Check Sequence: 12
19.75 05/03/2005 101-450-5200-42210
19.75
Vendor:DAHLG Dahlgren Shardlow and Uban Check Sequence: 13
25754 Fire Services Analysis 989.24 05/03/2005 101-420-2220 41300
Check Total: 989.24
Vendor:DAVISSUN Davis Sun Turf Check Sequence: 14
T100994 Air and Oil Filters - Parks 39.15 05/03/2005 101-450-5200-42210
Check Total: 39.15
Vendor:FOLTR Four Seasons Service
23-039411 Supplies - City Hall
Check Total:
Vendor:FXL FXL, Inc.
May 2005 Assessing Services - May 2005
Check Total:
Check Sequence: 15
51.34 05/03/2005 101-410-1940-44300
51.34
Check Sequence: 16
1,700.00 05/03/2005 101-410-1550-43100
1,700.00
Reference
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
AP - Computer Check Proof List (04/28/2005 - 3:45 PM) Page 2
Invoice No
Vendor: GENESIS
IVC00513
IVC00513
Vendor:HAWK
145489
Vendor:HUM
01/01/05-03/31
Vendor:ICC
McNamara 05
Vendor:LEAGUE
1-000021551
Vendor.LeagueL2
11046807
Vendor.MALMQ
Claim V.
Claim Voucher
Claim Voucher
Vendor:MAMA
1190
Vendor:MENARDSO
96789
97895
98529
Description
Next Genesis Productions
Monthly Software Support
Website development
Check Total:
Hawk Labeling Systems
Abeling Tape - Fire Dept.
Check Total:
Humane Society Companion Animl
Impounding - Ql
Check Total:
International Code Council,Inc
Certification Renewal - Jim McNamara
Check Total:
League ofMinnesota Cities
Codification Contract - Final Pmt
Check Total:
League of MinnesotaCities Insurance Trust
Sachs Jr. claim
Check Total:
GregMalmquist
Drinks - Fire Dept.
Burning Permits
Air Fare - Greg Malmquist - Intl Fire C
Check Total:
Metropolitan AreaManager Asociation
Luncheon 04/21 - AMM Leg. Update
Check Total:
Menards - Oakdale
Drill Bits - Public Works
Paper Towels -City Hall
Door Stop - Public Works
Amount Payment Date Acct Number
900.00 05/03/2005
768.75 05/03/2005
1,668.75
Check Sequence: 17
101-410-1520-43180
409-480-8000-45300
Check Sequence: 18
43.90 05/03/2005 101-420-2220-42000
43.90
Check Sequence: 19
540.70 05/03/2005 101-420-2700-43160
540.70
Check Sequence: 20
40.00 05/03/2005 101420-2400-44330
40_00
Check Sequence: 21
5,017.00 05/03/2005 101-410-1320-44300
5,017.00
Check Sequence: 22
315.75 05/03/2005 101410-1320-43610
315.75
62_09 05/03/2005
110.00 05/03/2005
249.50 05/03/2005
421.59
18.00 05/03/2005
18.00
39.22 05/03/2005
16.87 05/03/2005
8.51 05/03/2005
Check Sequence: 23
101420-2220-44300
101-420-2220 41300
101-420-2220-43310
Check Sequence: 24
101-410-1320 11370
Check Sequence: 25
101-430-3100-42400
101-410-1940-42110
101-430-310042230
Reference
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
AP - Computer Check Proof List (04/28/2005 - 3:45 PM) Page 3
Invoice No
99310
Description
Concrete Mix for sign repair
Check Total:
Vendor:MENARDST Menards - Stillwater
63230 Hose Adapter, couplers - Fire Dept.
Check Total:
Vendor:METCOU Metropolitan Council
SAC SAC Charge
Check Total:
Vendor:METROCA Metrocall Inc.
02215370 Pagers - Fire Dept.
Check Total:
Vendor:MNDOH
Cert. Gustafson
Cert. Horning
Cert. Magnuson
Vendor:NEX I.E,L
761950227-025
761950227-025
761950227-025
761950227-025
761950227-025
MN Department of Health
Certification Fee - Rick Gustafson
Certification Fee - Karl Homing
Certification Fee - Gerald Magnuson
Check Total:
Nextel Communications
Monthly Cellular Service - Admin
Monthly Cellular Service - Fire Dept
Monthly Cellular Service - Public Works
Monthly Cellular Service - Bldg Dept.
Monthly Cellular Service - Parks
Check Total:
Vendor:NORTHTOO HSBC Business Solutions
0561016934 Copper pins - Public Works
Check Total:
Vendor.OAKDALE
WAC
City of Oakdale
WAC Charge to City of Oakdale
Check Total:
Vendor:PETERSO Peterson Fram & Bergman
11135M Admin
Amount Payment Date
11.24 05/03/2005
75.84
7.06 05/03/2005
7.06
1,450.00 05/03/2005
1,450.00
83.21 05/03/2005
83.21
23.00 05/03/2005
23.00 05/03/2005
23.00 05/03/2005
69.00
77.25 05/03/2005
459.33 05/03/2005
102.23 05/03/2005
32.66 05/03/2005
16.69 05/03/2005
688.16
10.64 05/03/2005
10.64
500.00 05/03/2005
500.00
3,375.41 05/03/2005
Acct Number Reference
101-430-3100-42260
Check Sequence: 26
101-420-2220-42210
Check Sequence: 27
602-000-0000-37250
Check Sequence: 28
101-420-2220-43210
Check Sequence: 29
601-494-9400-44370
601-494-9400-44370
601-494-9400-44370
Check Sequence: 30
101-410-1940-43210
101-420-2220-43210
101-430-3100-43210
101-420-2400-43210
101-450-5200-43210
Check Sequence: 31
101-430-3100-42150
Check Sequence: 32
601-494-9400-43820
Check Sequence: 33
101-410-1610-43040
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
AP - Computer Check Proof List (04/28/2005 - 3:45 PM) Page 4
Invoice No
Description
Amount Payment Date Acct Number Reference
11140M
11150M
11155M
11161M
Veridor.POSTOFFI
Vendor:PRESS
04/16 - 04/25
04/19
Vendor: QUALAIR
8211
Vendor..RIVERLAN
00200SSFS-51
Vendor:ROGERS
12520
12520
Vendor:RUD
04/18-04/27
04/19-04/28
7179800452
Vendor:S&T
01JW0595
01JW4412
01JW5088
01JW5204
Criminal Pros
Community Dev
Civil Litigation
Auto Forfeiture
Check Total:
POSTMASTER
For Newsletter mailings
Check Total:
StevenPress
Cable Operator - Planning Meetings
Cable Operator - City Council Meeting
Check Total:
Quality Air
Gas Leak Repair
Check Total:
Riverland Community College
State Fire School - Yarusso
Check Total:
Rogers Printing Services
Business Cards - M. Rafferty
Business Cards - J. McNamara
Check Total:
DianePrince-Rud
Cleaning - City Hall
Cleaning - Fire Hall
Cleaning Supplies - Sponge Refill
Check Total:
S&T Office Products, Inc.
Return - Binders
Printer Cartridges - Fire Dept
Paper, Post -it pads, paper clips
Printer Cartridge - Bldg Dept
3,562.62 05/03/2005
1,956.61 05/03/2005
99.00 05/03/2005
318.50 05/03/2005
9,312.14
101-410-1610-43045
803-490-9070-43040
101-410-1610-43040
101-410-1610-43045
Check Sequence: 34
300.00 05/03/2005 101-410-1320-43220
300.00
276.75 05/03/2005
67.50 05/03/2005
344.25
Check Sequence: 35
101-410-1940-43620
101-410-1320-43620
Check Sequence: 36
96.00 05/03/2005 101-410-1940-44010
96.00
Check Sequence: 37
60.00 05/03/2005 101-420-2220-44370
60.00
30.88 05/03/2005
30.89 05/03/2005
61.77
240.00 05/03/2005
240.00 05/03/2005
4.25 05/03/2005
484.25
-24.65 05/03/2005
56.69 05/03/2005
225.32 05/03/2005
25.34 05/03/2005
Check Sequence: 38
101-410-1320-42000
101-420-2400-42000
Check Sequence: 39
101-410-1940-44010
101-420-2220-44010
101-410-1940-42110
Check Sequence: 40
101-410-1320-42000
101-420-2220-42000
101-410-1320-42000
10I-420-2400-42000
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled• No
ACH Enabled: No
ACH Enabled: No
AP - Computer Check Proof List (04/28/2005 - 3:45 PM) Page 5
Invoice No
011W7889
Vendor. SCHWAAB
S24709
S24709
Vendor. SEH
0128742
Vendor: Sherm
Claim
Vendor: SPRINT
0526076028-3
Description
Fax Cartridges - Fire Dept
Check Total:
Schwaab, Inc.
Pre -Ink Stamp
Sign. Stamps - DJ
Check Total:
Short Elliott Hendrickson,
Comp Trail Plan
Check Total:
RobertSherman
Misc Errands - Fire Dept.
Check Total:
Sprint
Data Card - Fire Dept.
Check Total:
Vendor:STJOSEPH St Joseph Equipment, Inc.
SR13704 Rental - Bachhoe
Check Total:
Vendor:TKDA
000200501399
000200501481
000200501486
000200501487
000200501488
000200501488
000200501488
000200501488
000200501488
000200501488
000200501488
000200501488
000200501488
000200501488
000200501488
TKDA, Inc.
Water Main Break Locate
SW Mgmt Plan & MS4 - NPDES II
Water Sys Interconnection
Water Tank Prelim
Comp Plan
The Farm - Concept Plan Review
Utility Permits
Tapestry
3 6th Street Drainage Problem Review
Water System
Storm Water System
NPDES PErmitting
Staff Meetings
Public Works Building
Misc Meetings
Amount Payment Date
27.58 05/03/2005
310.28
44.14 05/03/2005
52.19 05/03/2005
96.33
1,448.00 05/03/2005
1,448.00
120.21 05/03/2005
120.21
51.05 05/03/2005
51.05
213.00 05/03/2005
213.00
214.18
40.04
11,792.62
217.00
10,055.51
418.22
104.56
209.11
60.38
346.50
156.83
842.52
482.65
594.14
2,887.87
05/03/2005
05/03/2005
05/03/2005
05/03/2005
05/03/2005
05/03/2005
05/03/2005
05/03/2005
05/03/2005
05/03/2005
05/03/2005
05/03/2005
05/03/2005
05/03/2005
05/03/2005
Acct Number Reference
101-420-2220-42000
Check Sequence: 41
101-410-1320-42000
101-410-1110-44300
Check Sequence: 42
404-480-8000-43050
Check Sequence: 43
101-420-2220-44300
Check Sequence: 44
101-420-2220-43210
Check Sequence: 45
101-430-3100-43150
Check Sequence: 46
601-494-9400-42270
603-496-9500-43030
601-494-9400-43030
601-494-9400-43030
101-410-1910-43030
803-490-9070-43030
101-410-1930-43030
803-490-9070-43030
409-480-8000-43030
601-494-9400-43030
603-496-9500-43030
603-496-9500-43030
101-410-1930-43030
410-480-8000-46200
101-410-1930-43030
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
ACH Enabled: No
AP - Computer Check Proof List (04/28/2005 - 3:45 PM) Page 6
Invoice No Description Amount Payment Date Acct Number Reference
000200501488 Deer Men - planning, traffic, grading 418_22 05/03/2005 803-490-9070-43030
000200501489 Council Meetings Attendance - March 200.00 05/03/2005 101-410-1910-43030
000200501502 Public Works @ Sunfish Lake - Design 31,688.17 05/03/2005 101-410-1910-43030
Check Total: 60,728_52
Vendor:TRENIM MichaelTremain Check Sequence: 47 ACH Enabled: No
Travel Exp. Clm Tremain - Air Fare, Car Rental - FDIC 868.65 05/03/2005 101-420-2220-43310
Check Total: 868.65
Vendor:WASHTAX Washington County Check Sequence: 48
24221 Property Taxes - 3585 Laverne 760.00 05/03/2005 101-450-5200-44300
83536 Property Taxes - Heritage Farm 4.00 05/03/2005 101-410-1320-44300
Check Total: 764.00
ACH Enabled: No
Vendor:YOCUM. Yocum Oil Company, Inc. Check Sequence: 49 ACH Enabled: No
120713 Bulk Oil - Public Works 701.42 05/03/2005 101-430-3100-42120
Check Total: 701_42
Total for Check Run:
Total Number of Checks:
105,415.89
49
AP - Computer Check Proof List (04/28/2005 - 3:45 PM) Page 7
Accounts Payable
Computer Check Register
User: administrator
Printed: 04/28/2005 - 1544
Bank Account: APPR
Check
257
Vendor No Vendor Name
MNREVEN MN Department of Revenue
Date Invoice No
05/03/2005
Use & Sales Tax
Use & Sales Tax
Check 257 Total:
Report Total:
Amount
105.00
4.00
109.00
109.00
Page
MONTH
Jan
Feb
March
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Totals
11135
Administration
$4,443.11
$2,439.99
$3,375.41
11140
Criminal Pros
$3,456.17
$2,868.68
$3,562.62
CITY OF LAKE ELMO
2005 BILLING SUMMARY
11145 11150
Public Imp. Pro) Community Dev
$66.00 I $673,71
$544.36 $198.00
$1,956,61
$10,258.51 $9,887.47 $610.36
11155.
Civil Litigation
$210.00
$99.00
11161
Auto Forfeiture
$464.00
$94,50
$318.50
$2,828.32 $309.00
TOTAL
9, 12.99
$6,145.53
$9,312.14
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$877,00 $24,770.66
4/14/2005
Suite 300
50 East Fifth Street
St. Paul, MN 55101-1197
CITY OF LAKE ELMO
3800 Laverne Avenue North
Lake Elmo MN 55042
PERSON,
7'BERGMAN
ACCOUNT NO:
(651) 291-8995
16511228-1753 facsimile
Federal Tax ID #41-0991098
Page: 1
03/31/2005
11135M
FEES EXPENSES ADVANCES BALANCE
11135-030005 OLD VILLAGE AREA MORATORIUM
99.00 0.00 0.00 $99.00
11135-040010 VACATION OF 55TH STREET
55.00 0.00 0.00 $55.00
11135-050001 SUNFISH PARK
319.00 2,03 0.00 $321.03
11135-920001 Administration
2,893.00 7.38 0.00 $2,900.38
3,366.00 9.41 0.00 $3,375.41
THIS STATEMENT DUE AND PAYABLE TO THE END OF THE MONTH.
PAVNIENTS RECEIVED AFTER THE LAST DAY OF THE MONTH W4LL BE CREDITED TO THE NEXT MONTH'S STATEMENT.
PLEASE RETURN ONE COPY OF STATEMENT WITH PAYMENT.
Suite 300
50 East Fifth Street
St Paul, MN 55101-1197
CITY OF LAKE EL,MO
3800 Laverne Avenue North
Lake Elmo MN 55042
P TERSON,
FRAM BERGIVIAN
La Weir at Atgli-1 gtoli ilarilvitzteixect ph* is goljNi
ACCOUNT NO:
FEES EXPENSES ADVANCES
11140-030001 Misc Prosecutions
3,182.50 52.32 0.00
11140-030066 Brame, Angela Ann
3rd degree DUI, 3rd degree .10
0.00 0.00 31.20
11140-030170 Kuehn, James
45.00 0.00 0.00
11140-040065 Mackey, Paul Joseph
GM-DAC, Gm -false info to police
5.00
11140-040214 Liebgott, Jasen Michael
DAR, no insurance
0.00
27.50 0.00
11140-040245 Ross, Andrew James
no medical card, no mv registration
no proof of insurance
11140-040265 Driscoll, Scott Allen
domestic assault
11140-040274 Mielke, Andrew Paul
GM -theft
5.00 0,00
10.00 0.00
10.00 0.00
(6511 291-8955
(6511228-1753 facsimile
Federal Tax ID #41-0991098
Page: 1
03/31/2005
11140M
BALANCE
$3,234.82
$31,20
$45.00
0.00 $5.00
41.60 $69.10
0.00 $5.00
0.00 $10.00
0.00 $10.00
THIS STATEMENT tS DUEAND PAVABLE TO THE END OF THE MONTH.
PAYMENTS RECEIVED AFTER THE LAST DAY OF THE mown' WILIAM CREDITED TO THE NEXT MONTH'S STATEMENT.
PLEASE RETURN ONE COPY OF STATEMENT WITH PAYMENT.
Suite 300
50 East Fifth Street
St. Paul, MN 55101-1197
CITY OF LAKE ELMO -
P TERSON,
BERGIVIAN
FEES EXPENSES
11140-040275 Barber, Crystal Lynn
theft
5.00 0.00
11140-040276 Mielke, Andrew Paul
theft
5.00 0.00
11140-040281 Wukawitz, Timothy John
violate harassment order
22.50 0.00
11140-050001 Tollerud, Roseanne Mae
GM -school bus arm violation
5.00 0.00
11140-050026 Middleton, Steven M., Jr.
careless driving
5.00 0.00
11140-050043 Van Allen, Kenneth J.
domstic assault
5.00 0.00
11140-050051 Braun, Christopher Francis
domestic assault, 911 intereference
20.00 0.00
11140-050057 Kuehn, JoshuaKenneth
3rd degree DUI,
10.00 0.00
11140-050058 Ennis, David James
speed 77/55
10.00 0,00
11140-050059 Urur, Abdi Abdullahi
speed 78/55
10.00 0.00
(651) 291-8955
(651) 228-1753 facsimile
Fed eral Tax ID #41-0991098
ACCOUNT NO:
ADVANCES
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Page: 2
03/31/2005
11140M
BALANCE
$5.00
$5.00
$22.50
$5.00
$5.00
$5.00
$20.00
$10.00
$10.00
$10.00
THIS STATEMENT IS DUEAND PAYABLE TO THE END OF THE MONT191.
PAYMENTS RECEIVED AFFERTHE EAST DAT OF THE MONTH WILL BE CREDITED TO THE NEXT MONTH'S STATEMENT.
PLEASE RETURN ONE COPY OF STATEMENT WITH PAYMENT.
Suite 300
50 East Fifth Street
St. Paul, MN 55101-1197
CITY OF LAKE ELMO
FEES EXPENSES
11140-050060 Classen, Michael James
3rd degree DUI, 3rd degree .10
10.00 0.00
11140-050062 Yang, Andrew Kou
2nd degree DUI, DAR
10.00 0.00
11140-050064 Johnson, Dennis Paul
violate limited DL, no proof ins.
5.00 0.00
11140-050066 Gallmeier, Ryan Lee
3rd degree DUI, 3rd degree .10
10.00 0.00
11140-050067 Rivas, Martin Zuninga
3rd degree DUI, 3rd degree .10
DAR, open bottle
10.00 0.00
ACCOUNT NO:
ADVANCES
0.00
0.00
0.00
0.00
(6511 291-8955
(651) 228-175.3 facsimile
Federal Tax ID #41-0991098
Page: 3
03/31/2005
11140M
BALANCE
$10.00
$10.00
$5.00
$10.00
0.00 $10.00
11140-050068 Kleinvachter, Robert M.
2nd degree DUI, test refusal
10.00 0.00 0.00 $10.00
3,437.50 52.32 72.80 $3,562.62
THIS STATEMENTIS DUE AND PAYABLE TO MEMO Orf THE MONTH.
PAYMENTS RECEIVED AFTER THE LAST DAY OF THE MONTHWILL BE CREDITED TO ME NEXT MONTH'S STATEMENT.
PLEASE RETURN ONE COPY OF STATEMENT WITH PAYMENT.
Suite 300
50 East Fifth Street
St, Paul, MN 5510r-1197
CITY OF LAKE ELMO
3800 LAVERNE AVENUE NORTH
LAKE ELMO MN 55042
FWERSON,
C7BERGMAN
ACCOUNT NO:
16511291-8955
(651) 228-1753 facsimile
Federal Tax ID #41-0991098
Page: 1
03/31/2005
11150M
FEES EXPENSES ADVANCES BALANCE
11150-040005 LAKEWOOD EVANGELICAL FREE CHURCH - REZONING - SUP
1,790.00 0.00 0.00 $1,790.00
11150-050002 LE PROFESSIONAL CENTER C/0 J. MCDONALD VARIANCE
77.00 0.00 0.00 $77.00
11150-050003 BAHR CONSTRUCTION, LLC ADDITION
88.00 1.61 0.00 $89.61
1,955.00 1.61 0.00 $1,956.61
THIS STATEMENT IS DUE /Nu PAYABLE TO THE END OF THE MONTH,
PAYMENTS RECEIVED AFTER THE LAST DAY OF THE MONTHWILLBE CflETED TO THE NEXT MONTWS STATEMENT.
PLEASE RETURN ONE COPY OF STATEMENT WITH PAYMENT.
Suite 300
50 East Fifth Street
St, Paul, MN 55101-1197
CITY OF LAKE ELMO
3800 LAVERNE AVENUE NORTH
LAKE ELMO MN 55042
PETERSON_
FRAIVI&BERGMAN
ACCOUNT NO:
(651) 291-8955
(651) 228-1753 facsimile
Federal Tax ID #41-0991098
Page: 1
03/31/2005
11155M
FEES EXPENSES ADVANCES BALANCE
11155-040002 ZIERTMAN/SESSING PROPERTY
55.00 0.00 0.00 $55.00
11155-040003 SWENO PROPERTY CODE VIOLATION
44.00 0.00 0.00 $44.00
99.00 0.00 0.00 $99.00
VMS STATEMENT IS ME AND PAVABLE TO TIMEND OF THE MONTH.
PAYMENTS RECEIVED AFTEIRTHE LAST DIW OF THE MONTIRWILL BE CREDITED TO THE NEXT MONTH'S STATEMENT.
PLEASE RETURN ONE COPY OF STATEMENT WITH PAYMENT.
Suite 300
50 East Fifth Street
St Paul, MN 55101-1197
CITY OF LAKE ELMO
3800 LAVERNE AVENUE NORTH
LAKE ELMO MN 55042
PERSON,
BERGMAN
ACCOUNT NO:
(651) 291-8955
1651) 228-1753 facsimile
Federal Tax ID #41-0991098
Page: 1
03/31/2005
11161M
FEES EXPENSES ADVANCES BALANCE
11161-050001 Brama, Angela
vehicle forfeiture-2005 Escalade
308.50 0.00 0.00 $308.5D
11161-050002 Yang, Andrew Kou
vehicle forfeiture
10.00 0.00 0.00 $10.00
318.50 0.00 0.00 $318.50
THIS STATEMENT IS DM AND PAYABLETO THE END OF TIE MONTH.
PAYMENTS RECEWED AFTER TUE LAST DAY OF THE MONTHWILL OE CREDITED TO THE NEXT MONTHS STATEMENT.
PLEASE RETURN ONE COPY OF STATEMENT WITH PAYMENT.
Lake Elmo
City Council
05-03-2005
Agenda Section: Finance No . 5A
Agenda Item: 2004 Annual Audit Report
Background Information for May 03..2005.:
Attached, please find the City of Lake Elmo 2004 Annual Financial Report. Steve McDonald from Abdo,
Eick & Meyers ‘vill present the report and respond to any inquiries. After careful review, the City
administrator and I have concluded that Nye are in agreement with the figures and findings. It should be
noted however that the management letter indicates a reportable condition as Segregations of Duties. This
clause has appeared in past audits as well and staff has taken measures to mitigate this situation by hiring
additionai personnel and redirecting responsibilities of some of the accounting, functions. Due to the fact
that these changes occurred mid -year this condition was not eliminated. As noted in the report, the finding
should not be noted in future Audits.
New this year, the City is now required to meet GASB 34 standards. As a result of these requirements, there
are some new and modified reports included in the 2004 Financial Report such as Statement of Net Assets,
Statement of Activities and the Management & Discussion Analysis.
Action Items:
. Motion to accept the 2004 Annual Financial Report.
Attachments:
2004 Annual Financial Report
Person remonsihle:
Tom Bouthilet
Certified Public Accountants
Grandview Square
5201 Eden Avenue
Suite 370
Edina, MN 55436
L P
Consultants
Honorable Mayor and City Council
City of Lake Elmo, Minnesota
February 23, 2005
We have audited the financial statements of the City ofLake Elmo for the year ended December 31, 2004 and have issued our
report thereon dated February 23, 2005. Professional standards require that we provide you with the following information related
to our audit:
Our Responsibility Under Auditing Standards Generally Accepted in the United States
As stated in our engagement letter, our responsibility, as described by professional standards, is to plan and perfouu our audit to
obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly
presented in accordance with accounting principles generally accepted in the United States. Because an audit is designed to
provide reasonable, but not absolute assurance and because we did not perfolui a detailed examination of all transactions, there is
a risk that material errors, fraud, or other illegal acts may exist and not be detected by us.
In planning and performing our audit of the financial statements of the City, for the year ended December 31, 2004, 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 certain matters involving the internal control
and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified
Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the
design or operation of internal control that, in our judgment, could adversely affect the City's ability to record, process,
summarize, and report financial data consistent with the assertions of management in the financial statements. We noted the
following reportable condition.
Segregation of Duties
Our study and evaluation disclosed that because of the limited size of your office staff, the City has limited segregation of
duties. A good internal control structure contemplates an adequate segregation of duties so that no one individual handles a
transaction from inception to completion. While we recognize that the City is not large enough to permit an adequate
segregation of duties in all respects, it is important, however, that you be aware of this condition.
Management has hired personnel and assigned the accounting duties to the personnel as needed with intention to eliminate
this comment in the 2005 report.
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed
tests of compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our tests was not
to provide an opinion on compliance with such provisions. We noted no instances of non-compliance during our audit.
952.835.9090 • Fax 952.835.3261
www.aemcpas.com
City of Lake Elmo
February 23, 2005
Page Two
Significant Accounting Policies
Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our
engagement letter, we will advise management about the appropriateness of accounting policies and their application. The
significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 7 to the
financial statements, the City implemented several new accounting pronouncements issued by the Government Accounting
Standards Board (GASB). They are statement no. 34, "Basic Financial Statements - and Managementis Discussion and Analysis
-for State and Local Government", Statement No. 37, "Basic Financial Statements - and Management's Discussion and Analysis
-, for State and Local Governments: Omnibus", and Statement No. 38, "Certain Financial Statement Note Disclosures",
paragraphs 6 through 11 for 2004. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is
reported in the 2004 financial statements. We noted no transactions entered into by the City during the year that were both
significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there
is a lack of authoritative guidance or consensus.
Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management's
knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are
particularly sensitive because of their significance to the financial statements and because of the possibility that future events
affecting them may differ significantly from those expected. The most significant estimate affecting the financial statements was
depreciation on capital assets.
Management's estimate of depreciation is based on estimated useful lives of the assets. We evaluated the key factors and
assumptions used to develop this estimate in determining that it is reasonable in relation to the financial statements taken as a
whole.
Audit Adjustments
For purposes of this letter, professional standards define an audit adjustment as a proposed correction of the financial statements
that, in our judgment, may not have been detected except through our auditing procedures. An audit adjusment may or may not
indicate matters that could have a significant effect on the City's financial reporting process (that is, cause future financial
statements to be materially misstated). In total, we made 40 journal entries. The entries listed below are considered
reclassification entries. In each case the original entry was put into the wrong fund and the results of the audit procedures
indicated that a reclassification was necessary. There was improvement in the number of entries made compared with 2003 and
2002 and we would anticipate fewer entries in next year's audit. The City will get better information as staff eliminates the need
for these year end audit and accounting adjustments. There were no unadjusted audit differences.
ustin
reclassify
ournal Entries JE#17
oded to expe
101-000-0000-20801
101-420-2400-43060
Total
Building Permit Surcharge
Surcharge Payments
Debit
2,947.00
2,947.00
Credit
2,947.00
2,947.00
Ad*-dstin -Journal Entries, JE#18
To reclassify assessment prepays wproper fund
101-000'0000-34103 Zooinv, & Subdivision Fees
310'000'0000-36100
402'000'0000'10100
400'000'0000'10100
101'000'0000'10100
310'000'0000'10100
402'000'0000-33419
409'000'0000'36100
Total
Special Assessments
Cash
Cash
Cash
Cash
MSAConstruction
Special Assessments
Ad'ustinar Journal Entries JE#25
To reclassify state aids
101'000'0000-33418
101420'2220-44920
402'000'0000'10100
101'000'0000'10100
101'000'0000'33420
402'000'0000'33410
Tn,u|
MSA Maintenance
Fire State Aid
Cash
Cash
State Fire Aid
M8A Maintenance
To record revenue in sewer fund classified in water fund
601'000-0000`37100
602'000'0000'10100
601'000'0000'10100
602'000'0000'37200
Total
Water Sales
Cash
Cash
Sewer Sales
33���|
Toreclassify CDBGgrant dollars
101-000'0000'10100
803'000'0000-34108
]0]'000'0000'33130
80]'000-0000'10)00
Total
Disagreements with Management
received in September
Cash
Administrative Charges
CDBGOld Village
Cash
City ofLake Em
February Z3,2O05
Page Three
Debit Credit
48,694.00
]9,828l0
19,828,00
48,694.00
l37,044'O0
16,680.00
54,158.00
|6.680.U0
87,5l8J)0
28,500.00
28,500.00
57,000.00
10,000.00
10,000.00
20,000.00
48,694.00
19,828.00
19,828.00
48,694.00
l37,044'00
|6,68O.0O
54,158.00
16,680.00
87,518.00
28,500.00
28,500.00
57,00OJ)O
10,000.00
10,000.00
%0,000.00
For purposes of this letter, professional standards define odisagreement with managernentoaumatter, whether mnot resolved to
our satisfaction, concerning a financial accounting, reporting or auditing matter thatcould 6osignificant mthe financial statements
or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit.
Consultations with Other Independent Accountants
In some cases, management may decide tnconsult with other accountants about auditing and accounting matters, similar 10
obtaining u"second opinion" oncertain situations. If a consultation involves application of an accounting principle to the City's
financial statements c«udetermination o[the type ofauditors' opinion that may beexpressed outhoacomrmemts,ouzproh:o»inou
standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
kuop/|cdgc, there were no such consultations with other accountants.
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City of Lake Elmo
February 23, 2005
Page Four
Issues Discussed Prior to Retention of Independent Auditors
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with
management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our
professional relationship and our responses were not a condition to our retention.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing our audit.
Other Matters
Governmental Accounting Standards Board (GASB) Statement No. 34
As mentioned previously, the City has implemented GASB Statement No. 34 for the December 31, 2003 financial statements. The
main change resulting from the implementation was issuing financial statements under a new reporting model. The main features
of this model are summarized below:
• Narrative analysis through the Management Discussion & Analysis (MD&A) letter.
• Government -wide financial reporting that builds upon traditional fund based financial statements. The Government -wide
financial statements are intended to give a more concise view of the government as a single unified entity.
• More long-term focus for governmental activities. The City now has fixed assets, bonds and compensated absences
payable on its Statement of Net Assets for Governmental Activities. The addition of this information should help direct
users to a long-term view of the financial data.
• A distinction between major and non -major funds. More information is provided on individual funds that meet the
criteria to be included as major funds.
• Budgeting analysis that considers both the adopted and final budget.
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City of Lake Elmo
February 23, 2005
Page Five
The following are items that came to our attention during the audit that we feel should be reviewed:
Financial Position and Results of Operations
General Fund
The general fund is used to account for resources traditionally associated with government, which are not required legally or
by sound principal management to be accounted for in another fund. The fund balance increased $250,851 to $2,373,923 at
December 31, 2004. The total fund balance represents 88 percent of the 2005 budget. We recommend a minimum fund
balance for working capital be approximately 40 percent to 50 percent of planned expenditures. The City has made the
following reservations and designations of fund balance:
2004 2003
Reserved for interfund advance $ 500,000 $ 500,000
Designated for:
Community opinion survey 10,000 10,000
Public access 77,465 77,465
Building projects 1,258,640 1,152,708
Administrative contingency 40,000 40,000
Cash flow 487,818 487,818
Total $ 2,373,923 $ 2,267,991
The Minnesota Office of the State Auditor has classified cities unreserved fund balance levels relative to expenditures as
follows:
Extremely low Under 20%
Low 21 - 34
Acceptable 35 - 50
Moderately high 51 - 64
High 65 - 100
Very high 100 - 150
Extremely high Above 150
The State Auditor does group all general, special revenue and debt service funds of the City when making this calculation
where our calculation is based only on the general fund. Although there is no legislation regulating fund balance, it is a good
policy to designate intended use of fund balance. This helps address citizen concerns as to the use of fund balance and tax
levels. With the reserved portion of fund balance removed the percentage of fund balance compared with next years
expenditures drops to 69 percent.
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Atable mmonmizingthe general fund balance in relation Nbudget follows:
200
2001
20032002
2004
$3,000,000
$2,500,000
$2�0,N0 —�
$1,500,000
$1,000,000
$500,000 —
Unreserved
Fund Balance
Ducrmhcz3/
$ 1,418`567
1,779,944
2,202,783
2,123,072
2,373.923
Budget
Year
200|
2002
2003
2004
2005
General
Fund
Budget
$ 1,945,780
2,222,980
1,910,280
2,491,589
2,712,711
Fund Balance awePercent ef Next Year's Budget
73%
V�, LS
15%
Fund Balance
85%
$]/}|0,280
City ofLake Blnin
February Z3,2O05
Page Six
Percent
ofFund
Balance to
Budget
73 %
80
115
85
88
City of Lake Elmo
February 23, 2005
Page Seven
The purposes and benefits of a general fund balance are as follows:
Purposes and Benefits
• Expenditures are incurred somewhat evenly throughout the year. However, property tax and state aid revenues are not
received until the second half of the year. An adequate fund balance will provide the cash flow required to finance the
general fund expenditures.
• The City is vulnerable to legislative actions at the State and Federal level. The State eliminated HACA aid with the 2001
legislative session and since then imposed reductions of market value credit aid and local government aid for some cities.
Levy limits have also been implemented for municipalities in past legislative sessions. An adequate fund balance will
provide a temporary buffer against those aid adjustments and levy limits.
• Expenditures not anticipated at the time the annual budget was adopted may need immediate council action. These
would include capital outlay replacement, lawsuits and other items. An adequate fund balance will provide the financing
needed for such expenditures.
• A strong fund balance will assist the City in obtaining a more favorable bond rating.
A summary of the 2004 operations is as follows:
Revenues
Expenditures
Excess (deficiency) of revenue
over (under) expenditures
Other financing sources (uses)
Transfer out
Net change in fund balance
Fund balance, January 1, 2004
Fund balance, December 31, 2004
Final
Budget Actual
Variance with
Final Budget -
Positive
(Negative)
$ 2,258,441 $ 2,403,502 $ 145,061
2,111,457 2,003,651 107,806
146,984 399,851 252,867
(254,693) (149,000) 105,693
$ (107,709) 250,851 $ 358,560
2,123,072
$ 2,373,923
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City of Lake Elmo
February 23, 2005
Page Eight
A more detailed comparison of general fund revenue with the prior year is as follows:
Percent Increase
of (Decrease)
Source 2004 Total 2003 From 2003
Property taxes $ 1,697,236 70.6 % $ 1,620,001 $ 77,235
Licenses and permits 181,069 7.5 219,812 (38,743)
Intergovenlmental 265,393 11.0 133,690 131,703
Charges for services 139,507 5.8 85,270 54,237
Fines and forfeits 52,015 2.2 83,808 (31,793)
Investment earnings 49,890 2.1 47,110 2,780
Miscellaneous 18,392 0.8 40,375 (21,983)
Total revenues and transfers $ 2,403,502 100.0 % $ 2,230,066 $ 173,436
The 2004 revenue is graphically presented as follows:
2004 Revenues
Miscellaneous
0.8%
Investment earnings'
2.1%
Fines and forfeits
2.2%
Charges for services
5.8%
Property taxes
70.6%
Intergovernmental
11.0%
Licenses and permits
7.5%
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A more detailed comparison of expenditures with the prior year is as follows:
Program
General government
Public safety
Public works
Culture and recreation
Capital outlay
Transfers out
Total expenditures and transfers
Percent
of
2004 Total
766,841 35.7 %
848,439 39.4
261,144 12.1
108,213 5.0
19,014 0.9
149,000 6.9
$ 2,152,651
The 2004 expenditures are graphically presented as follows:
Transfers out
6.9%
Capital outlay
0.9%
Culture and recreation
5.0%
Public works
12.1%
2003
903,524
781,092
252,899
113,589
14,631
244,042
100.0 % $ 2,309,777
2004 Expenditures
General govenunent
35.7%
Public safety
39.4%
City of Lake Elmo
February 23, 2005
Page Nine
Increase
(Decrease)
From 2003
$ (136,683)
67,347
8,245
(5,376)
4,383
(95,042)
(157,126)
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City of Lake Elmo
February 23, 2005
Page Ten
Debt Service Funds
Debt service funds are used to account for the payment of long-term debt principal and interest. Governmental accounting
does not report the outstanding debt as a liability of the fund except for debt paid from enterprise funds. The following is a
summary of the assets accumulated in each debt service fund and the related long-term debt at year end.
Debt Description
General Obligation Bonds:
2001 G.O. Improvement
2002 G.O. Improvement
2004 G.O. CIP
Total G.O. Bonds
Capital Projects Funds
Total
Cash
December 31, 2004
Total
Assets
$ 93,278 $ 226,282
95,231 287,867
Final
Bonds Maturity
Outstanding Date
$ 950,000 2017
245,000 2012
4,090,000 2025
$ 188,509 $ 514,149 $ 5,285,000
These funds accumulate resources to finance major capital acquisition and construction projects. A recap of each fund and
fund balance (deficits) follows:
Fund
Major
Infrastructure reserve
Equipment acquisition
Non Major
Park acquisition
Section 33 utilities
MSA construction
Total
Fund Balance (Deficit)
December 31,
2004 2003
$ (193,623)
4,694,896
264,838
91,831
567,497
$ 5,425,439
$ (77,416)
702,187
404,422
91,527
425,334
Increase
(Decrease)
$ (116,207)
3,992,709
(139,584)
304
142,163
$ 1,546,054 $ 3,879,385
As projects are completed the City should transfer the remaining resources to the original funding source or to a permanent
reserve fund. The Section 33 utilities fund has had virtually no expenditure activity for at least the last three years. If this
project is complete, the fund should be closed by Council resolution in 2005.
The Infrastructure reserve fund has a deficit fund balance at the end of the year. It appears future special assessments will
eliminate the deficit.
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City of Lake Elmo
February 23, 2005
Page Eleven
Enterprise Funds
The Water Utility, Sewer Utility and Storm Water make up this fund type. A three year comparison for the water and sewer
fund follows:
S1,200,000
$1,000,000
$800,000
$600,000
S400,000
$200,000
S-
$(200,000)
Operating revenues
Operating expenses
Non operating revenues
Change in net assets
Cash Balance
Water Utility Fund
-"-
/002
S436,028
S184,471
$27,918
$279,475
$1,058,341
2003
S289,189
$252,270
820.345
857.264
S1,059,937
2004
$216,963
$333,705
S19,455
$(97,287)
S1,015,137
In prior years, we pointed out that connection fees made up a significant part of the revenue. In 2004, the lack ofconnection
fees caused the fund to end with an overall net loss. Connection charges were $42,600, $254,300 and $180,000 for 2003,
2002 and 2001, respectively. Without the connection charges the fund would have sustained operating losses or been near
breakeven. The water rates should be at a level to alone provide for the cost of operations since the connection charges
should be used for debt repayment or project costs.
The Water fund owes $500,000 to the general fund. Repayment terms have not yet been set. The City should establish an
amortization schedule to provide for repayment.
$180,000
$160,000 -
$140,000
$120,000 -
$ 100,000 -
$80,000 -
$60,000 -
$40,000 -
$20,000 -
$-
$(20,000) -
$(40,000)
Operating revenues
Operating expenses
Interest income
Change in net assets
Cash and investments
2002
$55,420
$22,909
$3,206
$35,717
$155,918
Sewer Fund
2003
$15,462
$38,372
$1,720
$(21,190)
$22,757
City of Lake Elmo
February 23, 2005
Page Twelve
2004
$23,158
$49,079
$196
$(25,725)
$6,493
The Sewer fund experienced an operating loss in 2004 and 2003. These losses are significant based on the level of
operations. The cash balance has also been depleted. We recommend that the City review its rates to ensure that adequate
cash flow can be obtained.
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Storm Water Utility
2004 Storm Water Results of Operations
$100,000
$80,000
$60,000 -
$40,000 -
$20,000
$(20,000)
2004
Operating revenues $85,513
El Operating expenses $71,760
0 Interest income $316
0 Change in net assets $14,069
0 Cash and investments $(9,002)
City of Lake Elmo
February 23, 2005
Page Thirteen
The first year of activity was reported in 2004. The cash balance is cunently a deficit due to project costs. The rates should be
reviewed to ensure that adequate cash flow exists.
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City of Lake Elmo
February 23, 2005
Page Fourteen
This report is intended solely for the information and use of management, Council and the Minnesota Office of the State Auditor
and is not intended to be and should not be used by anyone other than these specified parties.
Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting
records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read
in this context.
If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your
convenience. We wish to thank you for the opportunity to be of service and for the courtesy and cooperation extended to us by
your staff.
February 23, 2005 ABDO, EICK & MEYERS, LLP
Minneapolis, Minnesota
Certified Public Accountants
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CITY OF LAKE ELMO, MINNESOTA
ANNUAL
FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2004
CITY OF LAKE ELMO, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 2004
Page No.
I. INTRODUCTORY SECTION
Elected and Appointed Officials 1
II. FINANCIAL SECTION
Independent Auditor's Report 2
Management's Discussion and Analysis I - XI
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Assets 3
Statement of Activities 4
Fund Financial Statements
Governmental Funds
Balance Sheet 5 - 6
Reconciliation of the Balance Sheet to the Statement of Net Assets 7
Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) 8 - 9
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances (Deficits) to the Statement of Activities 10
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - General Fund 11
Proprietary Funds
Statement of Net Assets 12
Statement of Revenues, Expenses and Changes in Fund Net Assets 13
Statement of Cash Flows 14 - 15
Notes to Financial Statements 16 - 31
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 32
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 33
Nonmajor Proprietary Funds
Combining Statement of Net Assets 34
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 35
Combining Statement of Cash Flows 36
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 37 - 40
Debt Service Funds
Combining Balance Sheet 41
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 42
III. OTHER REPORTS
Report on Minnesota Legal Compliance 43
Report on Internal Control 44
Schedule of Findings 45
INTRODUCTORY SECTION
CITY OF LAKE ELMO, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
YEAR ENDED DECEMBER 31, 2004
ELECTED
Name Title Term Expires
Lee Hunt Mayor 12/31/04
Steve Delapp Council Member 12/31/05
Wyn John Council Member 12/31/04
Sue Dunn Council Member 12/31/04
Dean Johnston Council Member 12/31/04
Martin Rafferty
Tom Bouthilet
APPOINTED
City Administrator
Finance Director/Treasurer
-1-
FINANCIAL SECTION
CITY OF LAKE ELMO
LAKE ELMO, MINNESOTA
YEAR ENDED
DECEMBER 31, 2004
ABDO
EICK &
P VIEYERS W
Certd Public Accountants & Consultants
Grandview Square
5201 Eden Avenue
Suite 370
Edina, MN 55436
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Lake Elmo, Minnesota
We have audited the accompanying fmancial statements of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information the City of Lake Elmo (the City), Minnesota, as of and for the year ended
December 31, 2004 as listed in the table of contents. These financial statements are the responsibility of the City's management.
Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the fmancial 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 as of December 31, 2004 and the respective changes in financial position and cash flows, where applicable for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
As described in Note 7, the City has implemented a new financial reporting model, as required by the provisions of GASB
Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments as
of December 31, 2004.
The Management's Discussion and Analysis on pages I through XI is not a required part of the financial statements but is
supplementary information required by accounting principles generally accepted in the United States of America. We have
applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the supplementary information. However, we did not audit the information and express no
opinion on it.
Our audit was conducted for the purpose of forming an opinion on the fmancial statements that collectively comprise the
City's basic financial statements. The introductory section, combining and individual fund financial statements and
schedules are presented for the purpose of additional analysis and are not a required part of the basic financial statements.
The combining and individual fund financial statements and schedules have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation
to the basic financial statements taken as a whole. The introductory section has not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it.
February 23, 2005
Minneapolis, Minnesota
, L LP
ABDO, EICK & MEYERS, LLP
Certified Public Accountants
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Management's Discussion and Analysis
As management of the City of Lake Elmo (the City), Minnesota, we offer readers of the City's financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2004. This is the first year of
implementation of GASB Statement No. 34 for the City and some comparative data is not available.
Financial Highlights
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $8,531,111 (net assets). Of this
amount, $4,452,459 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors.
• The City's total net assets increased by $666,282. Approximately 58 percent of this increase is attributable to gain on sale of
capital assets and unrestricted investment earnings.
• As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$7,987,871, an increase of $4,051,935 in comparison with the prior year. Approximately 91.4 percent of this total amount,
$7,299,362, is available for spending at the City's discretion, but has been designated for specific purposes.
• At the end of the current fiscal year, unreserved fund balance for the General fund was $1,873,923, or 118.5 percent of total
general fund expenditures.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's 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 supplemental information in addition to the basic financial statements themselves.
-I-
Management Discussion and Analysis - Continued
February 23, 2005
The financial statements also include notes that explain some of the information in the financial statements and provide more detailed
data. The statements are followed by a section of combining and individual fund financial statements and schedules that further
explains and supports the information in the financial statements. Figure 1 shows how the required parts of this annual report are
arranged and relate to one another. In addition to these required elements, we have included a section with combining and individual
fund financial statements and schedules that provide details about nonmajor governmental funds, which are added together and
presented in single columns in the basic financial statements.
Figure 1
Required Components of the
City's Annual Financial Report
Management's
Discussion and
Analysis
Basic Financial Required
Statements Supplementary
Information
Government -wide Fund Notes to the
Financial Financial Financial
Statements Statements Statements
Summary
3 Detail
-II-
Management Discussion and Analysis - Continued
February 23, 2005
Figure 2 summarizes the major features of the City's financial statements, including the portion of the City government they cover and
the types of information they contain. The remainder of this overview section of management's discussion and analysis explains the
structure and contents of each of the statements.
Scope
Figure 2
Major features of the Government -wide and Fund Financial Statements
Government -wide
Statements
Entire City government
(except fiduciary funds) and
the City's component units
Required. financial • Statement of Net Assets
statements • Statement of Activities
Accounting Basis and
measurement focus
Type of asset/liability
information
Type of in flow/out flow
information
Accrual accounting and
economic resources focus
All assets and liabilities, both
financial and capital, and
short-term and long-term
All revenues and expenses
during year, regardless of
when cash is received or paid
Fund Financial Statements
Governmental Funds
The activities of the City that
are not proprietary of
fiduciary, such as police, fire
and parks
• Balance Sheet
• Statement of Revenues,
Expenditures, and
Changes in Fund
Balances
Modified accrual accounting
and current financial
resources focus
Only assets expected to be
used up and liabilities that
come due during the year or
soon thereafter; no capital
assets included
Revenues for which cash is
received during or soon after
the end of the year;
expenditures when goods or
services have been received
and payment is due during
the year or soon thereafter
Proprietary Funds
Activities the City operates
similar to private businesses,
such as the water and sewer
system
• Statement of Net Assets
• Statement of Revenues,
Expenses and Changes in
Fund Net Assets
• Statement of Cash Flows
Accrual accounting and
economic resources focus
All assets and liabilities, both
financial and capital, and
short-term and long-term
All revenues and expenses
during the year, regardless of
when cash is received or paid
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner
similar to a private -sector business.
The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported
as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the fmancial position of the
City is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All
changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenue (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 include general
government, public safety, public works, culture and recreation, interest on long-term debt, and miscellaneous. The business -type
activities of the City include water, sewer and storm sewer utilities.
The government -wide financial statements can be found on pages 3 - 4 of this report.
-III-
Management Discussion and Analysis - Continued
February 23, 2005
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, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and
proprietary funds.
Governmental funds. The funds are used to account for essentially the same functions reported as governmental activities in the
government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial
statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a city's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the
information presented for governmental funds with similar information presented for governmental activities in the government -wide
financial statements. By doing so, readers may better understand the long-term impact by the City'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 maintains 9 individual governmental funds, 3 of which are Debt Service 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 Debt Service fund, the Infrastructure Reserve fund, and the Equipment Acquisition fund, all of which are
considered to be major funds. Data from the other three governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements or schedules
elsewhere in this report.
The City adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided for the
General fund to demonstrate compliance with this budget.
The basic governmental fund fmancial statements can be found on pages 5 - 11 of this report.
Proprietary funds. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented
as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its water, sewer
and storm sewer.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The
proprietary fund fmancial statements provide separate information for the water fund. Data on the other two proprietary funds are
combined into a single, aggregated presentation.
The basic proprietary fund financial statements can be found on pages 12 - 15 of this report.
Notes to 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 16 - 31 of this report.
Other Information
The combining statements referred to earlier in connection with nonmajor governmental funds are presented following the notes to
financial statements. Combining and individual fund statements and schedules can be found on pages 32 - 42 of this report.
-IV-
Management Discussion and Analysis - Continued
February 23, 2005
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,
assets exceeded liabilities by $8,531,111 at the close of the most recent fiscal year.
By far, the largest portion of the City's net assets (41.2 percent) reflects its 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 uses these capital assets
to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Summary of Net Assets
Governmental Business
i
activities activities Total
Assets
Current and other assets $ 8,943,138 $ 607,078 $ 9,550,216
Capital assets (net of depreciation) 3,422,645 1,924,121 5,346,766
Total assets 12,365,783 2,531,199 14,896,982
Liabilities
Long-term liabilities outstanding g t 5,343,064 640,000 5,983,064
Other liabilities 336,327 46,480 382,807
Total liabilities 5,679,391 686,480 6,365,871
Net assets
Invested in capital assets, net of related debt 2,227,645 1,284,121 3,511,766
Restricted 566,886 566,886
Unrestricted 3,891,861 560,598 4,452,459
Total net assets $ 6,686,392 $ 1,844,719 $ 8,531,111
An additional portion of the City's net assets (3.5 percent) represents resources that are subject to external restrictions on how they
may be used. The remaining balance of unrestricted net assets ($4,452,459) may be used to meet the City's ongoing obligations to
citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, both for the City as
a whole, as well as for its separate governmental and business -type activities.
The City's net assets increased by $666,282 during the current fiscal year. About $250,850 of this increase represents the degree to
which increases in ongoing revenues have outstripped similar increases in ongoing expenses. Approximately another 80,000 is
attributable to special assessments. The remainder of this growth largely reflects rate increases, increases in operating grants and
investment earnings.
-V-
Management Discussion and Analysis - Continued
February 23, 2005
Governmental activities. Governmental activities increased the City's net assets by $775,225 thereby accounting for 116 percent of
the total growth in the net assets of the City. Key elements of this increase are as follows:
Changes in Net Assets
Governmental Business
activities activities
Total
Revenues
Program revenues
Charges for services $ 389,991 $ 353,364 $ 743,355
Operating grants and contributions 251,271 - 251,271
Capital grants and contributions 345,942 - 345,942
General revenues
General taxes 1,695,648 - 1,695,648
Grants and contributions not
restricted to specific programs 60,694 60,694
Investment earnings 93,801 23,107 116,908
Gain on sale of capital assets 269,375 269,375
Total revenues 3,106,722 376,471 3,483,193
Expenses
General government $ 781,229 $ - $ 781,229
Public safety 919,139 919,139
Public works 341,134 341,134
Culture and recreation 215,785 215,785
Miscellaneous - Debt service 74,210 74,210
Water 364,575 364,575
Sewer 49,079 49,079
Storm sewer 71,760 71,760
Total expenses 2,331,497 485,414 2,816,911
Change in net assets 775,225 (108,943) 666,282
Net assets, January 1 5,911,167 1,953,662 7,864,829
Net assets, December 31 $ 6,686,392 $ 1,844,719 $ 8,531,111
• Property tax increased by $69,659 (4.3 percent) during the year. Most of this increase is the product of increased property
values.
• Operating grants for governmental activities increased by $134,997, mostly a result of an aggressive grant application
strategy undertaken by the City during the current fiscal year. The new grant awards furnished resources to support three of
the City's functions: public safety, highways and streets, and culture and recreation.
-VI-
Management Discussion and Analysis - Continued
February 23, 2005
The following graph depicts various governmental activities and shows the revenue and expenses directly related to those
activities.
S1,000,000 _Z
$900,000
$800,000
S700,000
S600,000
$500,000 -
S400,000
$300,000
$200,000 --
S100,000
8-
Expenses and Program Revenues - Governmental Activities
General
government
Capital grants and
contributions
I 1.1%
Public safety Public works
Culture and Miscellaneous Debt service
recreation
0 Expense Program Revenue
Revenue by Source - Governmental Activities
Property taxes
54.6%
Operating grants and
contributions
8.0%
Charges for services
12.6%
Grants and
contributions not
restricted to specific
programs
2.0%
Investment earnings
3.0%
Gain on sale of capital
assets
8.7%
For the most part, increases in expenses closely paralleled inflation and growth in the demand for services. Two noteworthy
exceptions, however, were the City's Law Enforcement contract and Fire Department. In those instances, the growth in expenses
of $15,629 (4.85 percent) for the Law Enforcement contract is due to some indirect labor and vehicle expenses; the growth in
expenses of $42,896 (272 percent) for the Fire Department reflects the cost of additional City funding for the Firemen Relief
Association that was required by Mimiesota statue.
-VII-
Management Discussion and Analysis - Continued
February 23, 2005
Business -type activities. Business -type activities decreased the City's net assets by $108,943, accounting for a 16 percent drop in the
total growth of the City's net assets. Key elements of this decrease are as follows:
Professional Engineering Services in connection with future water infrastructure projects. In this case revenue from future
growth will offset these expenditures;
The City currently purchases water from a neighboring City for approximately 130 residential units and 25 commercial
establishments. The City has maintained a uniform rate structure for the entire City and subsequently the rates charged to
customers that are not on the City's water system have resulted in a loss. The expansion and improvement of the City's
water infrastructure in the near future will allow us to incorporate these entities into our water system thus eliminating the
need for an outside utility source and the expenditures associated with it.
$400,000 -
$300,000
$200,000 -
$100,000 ='
Expenses and Program Revenues - Business Activities
Water
Sewer
0 Expense 0 Program Revenue j
Storm sewer
-VIII-
Management Discussion and Analysis - Continued
February 23, 2005
Financial Analysis of the Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows and
balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved
fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $7,987,871, an
increase of $4,051,935 in comparison with the prior year. Approximately 91.3 percent of this total amount $7,299,362 constitutes
unreserved fund balance, which is available for spending at the City's discretion. The remainder of fund balance is reserved to
indicate that it is not available for new spending because it has already been committed to pay debt service in the amount of $188,509.
The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General fund was
$2,373,923. As a measure of the General fund's liquidity, it may be useful to compare both unreserved fund balance and total fund
balance to total fund expenditures. Unreserved fund balance represents 93.5 percent of fund expenditures, while total fund balance
represents 118.5 of that same amount.
The fund balance of the City's General fund increased by $250,851 during the current fiscal year. The key factors in this increase
were:
• An increase in revenue by $173,436 which was a result of property tax revenue from property values and a FEMA Grant in
the amount of $116,343.
• Reduction in expenditures by $62,084 from the General Government accounts.
The Debt Service fund has a total fund balance of $188,209, all of which is reserved for the payment of debt service. The net decrease
in fund balance during the current year in the Debt Service fund was $78,301. The City received revenue of $104,282 from special
assessments and interest on investments while expended $182,583 for bond payments.
Proprietary funds. The City's proprietary funds provide the same type of information found in the government -wide fmancial
statements, but in more detail.
Unrestricted net assets of the enterprise funds at the end of the year amounted $560,598. The total decrease in net assets for the funds
was $108,943. Other factors concerning the finances of this fund have already been addressed in the discussion of the City's business -
type activities.
General Fund Budgetary Highlights
The City's General fund budget was not amended during the year. The budget called for spending down approximately $107,709 of
reserves. Revenues exceeded expectations and none of reserves were used for operations in 2004.
The City did not amend the adopted 2004 Budget during the fiscal year.
-IX-
Management Discussion and Analysis - Continued
February 23, 2005
Capital Asset and Debt Administration
Capital Assets. The City's investment in capital assets for its governmental and business -type activities as of December 31, 2004,
amounts to $5,346,766 (net of accumulated depreciation). This investment in capital assets includes land, structures, improvements,
machinery and equipment, park facilities, and streets. The total increase in the City's investment in capital assets for the current fiscal
year was 10.2 percent (a 20 percent increase for governmental activities and a 4 percent decrease for business -type activities).
Major capital asset events during the current fiscal year included the following:
• Purchases of Capital Equipment including new; public works tractor with plow ($48,319), new fire grass rig ($77,812),
SCBA fire gear ($130,233).
• One major street reconstruction project and 2004 street overlay projects.
• The construction of new VFW ball field lights ($134,000).
Additional information on the City's capital assets can be found in Note 3C on pages 23 - 24 of this report.
Capital Assets Net of Depreciation
Governmental Business
activities activities Total
Land $ 1,827,837 $ 36,573 $ 1,864,410
Construction in process 248,131 248,131
Buildings 232,724 - 232,724
Improvements other than buildings 509,992 509,992
Machinery and equipment 601,731 80,921 682,652
Infrastructure 2,230 1,806,627 1,808,857
Total $ 3,422,645 $ 1,924,121 $ 5,346,766
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $5,925,000. Of this amount,
$1,195,000 is special assessment debt, $4,090,000 general obligation debt, and $640,000 is revenue debt. While all of the City's
bonds have revenue streams, they. are all backed by the full faith and credit of the City.
Outstanding Debt
Governmental Business
activities activities
Total
Compensated absences $ 58,064 $ - $ 58,064
Bonds payable 5,285,000 640,000 5,925,000
Total $ 5,343,064 $ 640,000 $ 5,983,064
The City's total debt increased by $3,924,655 (191 percent) during the current fiscal year. This is primarily due to the financing for a
new Public Works and City Hall facilities.
-X-
Management Discussion and Analysis - Continued
February 23, 2005
The City upgraded it rating from "Al" to "Aa3a" from Moody's for general obligation debt allowing the City to receive favorable
interest rates on bonds issued.
Minnesota statutes limit the amount of net general obligation debt a City may issue to 2.0 percent of the market value of taxable
property within the City. Net debt is debt payable solely from ad valorem taxes. The current debt limitation for the City is
$18,156,996, which is significantly in excess of the City's outstanding general obligation debt.
In November 2004, the City issued $4,090,000 of General Obligation Capital Improvements Plan bonds to finance the construction of
a new Public Works Facility and City Hall.
Additional information on the City's long-term debt can be found in Note 3E on pages 25 - 26 of this report.
Economic Factors and Next Year's Budgets and Rates
• The unemployment rate for Washington County is currently 4.1 percent, which the same rate as was a year ago. This
compares favorably to the State's average unemployment rate of 4.9 percent and the national average rate of 5.6 percent.
• Property valuations within the City remain strong and growing.
• Inflationary trends in the region compare favorably to national indices.
All of these factors were considered in preparing the City's budget for the 2005 fiscal year.
During the current fiscal year, unreserved fund balance in the General fund increased to $1,873,923. The City has appropriated
$1,346,105 of this amount for capital spending in the 2005 fiscal year budget. It is intended that this use of available fund balance will
minimize the need to raise taxes or charges during the 2005 fiscal year.
The 2005 Fiscal Budget increased the property tax levy by 12.0 percent. The City's share of property taxes is low when compared to
similar sized cities throughout the State. The tax increase will provide an additional $125,351 for bond payments for our new public
facilities.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's
finances. Questions concerning any of the information provided in this report or requests for additional fmancial information should
be addressed to the City Finance Director, City of Lake Elmo 3800 Laverne Avenue North, Lake Elmo, Minnesota, 55042.
-XI-
BASIC FINANCIAL STATEMENTS
CITY OF LAKE ELMO
LAKE ELMO, MINNESOTA
YEAR ENDED
DECEMBER 31, 2004
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF NET ASSETS
DECEMBER 31, 2004
Governmental Business -type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 7,706,167 $ 1,012,628 $ 8,718,795
Receivables
Delinquent taxes receivable 68,683 68,683
Accounts 400 65,395 65,795
Interest 8,915 - 8,915
Special assessments 544,634 5,139 549,773
Internal balances 500,000 (500,000) -
Due from other governments 22,202 22,202
Unamortized bond discount 92,137 23,916 116,053
Capital assets (net of accumulated depreciation)
Land 1,827,837 36,573 1,864,410
Buildings 232,724 232,724
Improvements other than buildings 509,992 509,992
Machinery and equipment 601,731 80,921 682,652
Infrastructure 2,230 1,806,627 1,808,857
Construction in progress 248,131 248,131
TOTAL ASSETS 12,365,783 2,531,199 14,896,982
LIABILITIES
Salaries payable 33,935 14,161 48,096
Accounts and other payables 79,182 26,327 105,509
Accrued interest payable 39,400 2,397 41,797
Due to other governments 183,810 3,595 187,405
Noncurrent liabilities - due within one year
Compensated absences 8,129 8,129
Bonds payable 130,000 25,000 155,000
Noncurrent liabilities - due in more than one year
Compensated absences 49,935 49,935
Bonds payable 5,155,000 615,000 5,770,000
TOTAL LIABILITIES 5,679,391 686,480 6,365,871
NET ASSETS
Investment in capital assets net of related debt 2,227,645 1,284,121 3,511,766
Restricted for
Debt service 566,886 566,886
Unrestricted 3,891,861 560,598 4,452,459
TOTAL NET ASSETS $ 6,686,392 $ 1,844,719 $ 8,531,111
The notes to the financial statements are an integral part of this statement.
-3-
Functions/Programs
Governmental activities
General government
Public safety
Public works
Culture and recreation
Interest on long-term debt
Total governmental activities
Business -type activities
Water
Sewer
Storm sewer
Total business -type activities
Total primary government
CITY OF LAKE ELMO, MINNESOTA
STA1EMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2004
Charges for
Expenses Services
$ 781,229 $ 97,448
919,139 270,159
341,134 4,984
215,785 17,400
74,210
2,331,497 389,991
364,575 244,693
49,079 23,158
71,760 85,513
485,414 353,364
Program Revenues
Operating
Grants and
Contributions
$ 34,866
170,501
34,404
11,500
Capital
Grants and
Contributions
Net Revenue (Expense)
and Changes in Net Assets
Primary Government
Governmental Business -type
Activities Activities
$ $ (648,915) $
(478,479)
345,942 44,196
(186,885)
(74,210)
251,271 345,942 (1,344,293)
$ 2,816,911 $ 743,355 $ 251,271
$ 345,942
General revenues
Taxes
Property taxes
Franchise taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Total general revenues
Change in net assets
Net assets, January 1, as restated
Net assets, December 31
The notes to the financial statements are an integral part of this statement.
(119,882)
(25,921)
13,753
(132,050)
(1,344,293) (132,050)
1,678,528
17,120
60,694
93,801
269,375
2,119,518
775,225
5,911,167
$ 6,686,392
Total
$ (648,915)
(478,479)
44,196
(186,885)
(74,210)
(1,344,293)
(119,882)
(25,921)
13,753
(132,050)
(1,476,343)
1,678,528
- 17,120
- 60,694
23,107 116,908
- 269,375
23,107 2,142,625
(108,943) 666,282
1,953,662 7,864,829
$ 1,844,719 $ 8,531,111
-4-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
FUND FINANCIAL STATEMENTS
CITY OF LAKE ELMO
LAKE ELMO, MINNESOTA
YEAR ENDED
DECEMBER 31, 2004
CITY OF LAKE ELMO, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2004
Debt Infrastructure
General Service Reserve
ASSETS
Cash and cash equivalents (deficit) $ 2,088,006 $ 188,509 $ (192,745)
Receivables
Accrued interest 8,915
Delinquent taxes 68,683
Accounts 400
Special assessments 325,640 194,252
Advances to other funds 500,000
Due from other governments 22,202
TOTAL ASSETS $ 2,688,206 $ 514,149 $ 1,507
LIABILITIES AND FUND BALANCES (DEFICITS)
LIABILITIES
Accounts payable $ 74,969 $ $ 878
Due to other governments 183,810
Salaries and compensated absences payable 33,935
Deferred revenue 21,569 325,640 194,252
TOTAL LIABILITIES 314,283 325,640 195,130
FUND BALANCES (DEFICITS)
Reserved for
Debt service 188,509
Reserved for advances to other funds 500,000
Unreserved, reported in
General fund 1,873,923
Capital projects - (193,623)
TOTAL FUND BALANCES (DEFICITS) 2,373,923 188,509 (193,623)
TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $ 2,688,206 $ 514,149 $ 1,507
The notes to the financial statements are an integral part of this statement.
-5-
Equipment
Acquisition
Other
Nonmajor
Governmental
Funds
$ 4,698,028 $ 924,369
24,742
Total
Governmental
Funds
$ 7,706,167
8,915
68,683
400
544,634
500,000
22,202
$ 4,698,028 $ 949,111 $ 8,851,001
$ 3,132 $ 203
3,132
24,742
24,945
$ 79,182
183,810
33,935
566,203
863,130
188,509
500,000
1,873,923
4,694,896 924,166 5,425,439
4,694,896 924,166 7,987,871
$ 4,698,028 $ 949,111 $ 8,851,001
-6-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
CITY OF LAKE ELMO, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL FUNDS
DECEMBER 31, 2004
Total fund balances - governmental funds $ 7,987,871
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 4,817,979
Less: accumulated depreciation (1,395,334)
Long-term 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 year-end consist of:
Compensated absences payable (58,064)
Bond principal payable (5,285,000)
Less bond discount net of accumulated amortization 92,137
Delinquent property taxes receivable will be collected this year, but are not available soon
enough to pay for the current periods expenditures, and therefore are deferred in the funds
Delinquent special assessments 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
Governmental funds do not report a liability for accrued interest until
due and payable
Total net assets - governmental activities
The notes to the financial statements are an integral part of this statement.
21,569
544,634
(39,400)
$ 6,686,392
-7-
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
Debt Infrastructure
General Service Reserve
REVENUES
Taxes $ 1,697,236 $ $
Licenses and permits 181,069
Intergovernmental 265,393
Charges for services 139,507
Fines and forfeits 52,015
Special assessments 100,656 89,913
Interest on investments 49,890 3,626
Miscellaneous 18,392
TOTAL REVENUES 2,403,502 104,282 89,913
EXPENDITURES
Current
General government 766,841
Public safety 848,439
Public works 261,144
Culture and recreation 108,213
Capital outlay 19,014 206,120
Debt service
Principal 130,000
Interest and other 52,583
TOTAL EXPENDITURES 2,003,651 182,583 206,120
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 399,851 (78,301) (116,207)
OTHER FINANCING SOURCES (USES)
Transfer in
Bonds issued
Sale of capital assets -
Transfer out (149,000)
TOTAL OTHER FINANCING SOURCES (USES) (149,000) -
NET CHANGE IN FUND BALANCES 250,851 (78,301) (116,207)
FUND BALANCES (DEFICITS), JANUARY 1 2,123,072 266,810 (77,416)
FUND BALANCES (DEFICITS), DECEMBER 31 $ 2,373,923 $ 188,509 $ (193,623)
The notes to the financial statements are and integral part of this statement.
-8-
Other
Nonmajor Total
Equipment Governmental Governmental
Acquisition Funds Funds
$ $ $ 1,697,236
181,069
136,508 401,901
139,507
52,015
268 190,837
19,232 21,053 93,801
28,900 47,292
19,232 186,729 2,803,658
766,841
848,439
261,144
108,213
603,386 183,846 1,012,366
130,000
92,137 144,720
695,523 183,846 3,271,723
(676,291) 2,883 (468,065)
149,000 149,000
4,090,000 4,090,000
430,000 430,000
(149,000)
4,669,000 4,520,000
3,992,709 2,883 4,051,935
702,187 921,283 3,935,936
$ 4,694,896 $ 924,166 $ 7,987,871
-9-
CITY OF LAKE ELMO, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES (DEFICITS) TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
Total net change in fund balances (deficits) - governmental funds $ 4,051,935
Amounts reported for governmental activities in the statement
of 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 880,283
Depreciation expense (150,912)
The issuance of bonds provide current financial resources to governmental funds, while the repayment
of the principal of long-term debt consumes the current financial resources of governmental funds. Neither
tranaction has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums
discounts, and siniialar items when debt is first issued, wheras these amount are deferred and amortized in the
statement of activities. The amount below are the effect of these differences in the treatement of long-term
debt and related items
Debt issued (4,090,000)
Less bond issuance costs 92,137
Principal repayments 130,000
Interest on long-term debt in the statement of activities differs from the amount reported in the
governmental fund because interest is recognized as an expenditure 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 receivables 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.
Special assessments
Property taxes
(21,627)
35,277
(1,588)
Proceeds of the sale of capital assets are shown in the governmental fund financial statements.
Only the gain on sale of capital assets is shown for the government -wide financial statements. (160,625)
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.
Compensated absences
10,345
Change in net assets - governmental activities $ 775,225
The notes to the financial statements are an integral part of this statement.
-10-
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2004
REVENUES
Property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest on investments
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING USES
Transfer out
NET CHANGE IN FUND BALANCES
FUND BALANCES, JANUARY 1
FUND BALANCES, DECEMBER 31
Budgeted Amounts
Original Final
$ 1,723,767 $ 1,723,767
219,924 219,924
62,750 62,750
78,000 78,000
140,000 140,000
34,000 34,000
2,258,441 2,258,441
793,253
821,666
324,014
148,274
24,250
2,111,457
146,984
(254,693)
793,253
821,666
324,014
148,274
24,250
2,111,457
146,984
(254,693)
Variance with
Final Budget -
Positive
Actual (Negative)
$ 1,697,236
181,069
265,393
139,507
52,015
49,890
18,392
$ (26,531)
(38,855)
202,643
61,507
52,015
(90,110)
(15,608)
2,403,502 145,061
766,841
848,439
261,144
108,213
19,014
26,412
(26,773)
62,870
40,061
5,236
2,003,651 107,806
399,851 252,867
(149,000) 105,693
(107,709) (107,709) 250,851 358,560
2,123,072 2,123,072 2,123,072
$ 2,015,363 $ 2,015,363 $ 2,373,923 $ 358,560
The notes to the fmancial statements are an integral part of this statement.
-11-
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
DECEMBER 31, 2004
Business -type Activities - Enterprise Funds
Other
Nonmajor Total
Proprietary Proprietary
Water Fund Funds Funds
ASSETS
CURRENT ASSETS
Cash and temporary investments (deficit) $ 1,015,137 $ (2,509) $ 1,012,628
Receivables
Accounts 46,212 19,183 65,395
Special assessments 5,139 5,139
TOTAL CURRENT ASSETS 1,066,488 16,674 1,083,162
NONCURRENT ASSETS
Bond discount net of accumulated amortization 23,916 23,916
Capital assets
Land 36,573 36,573
Machinery and equipment 112,270 112,270
Infrastructure 2,162,076 358,272 2,520,348
Less accumulated depreciation (628,867) (116,203) (745,070)
TOTAL CAPITAL ASSETS
(NET OF ACCUMULATED DEPRECIATION) 1,682,052 242,069 1,924,121
TOTAL NONCURRENT ASSETS 1,705,968 242,069 1,948,037
TOTAL ASSETS 2,772,456 258,743 3,031,199
LIABILITIES
CURRENT LIABILITIES
Accounts payable 21,603 4,724 26,327
Salaries payable 11,007 3,154 14,161
Accrued interest payable 2,397 2,397
Due to other governments 3,595 3,595
TOTAL CURRENT LIABILITIES 38,602 7,878 46,480
NONCURRENT LIABLILITIES
Due in one year
Bonds payable 25,000 25,000
Due in more than one year
Advances from other funds 500,000 500,000
Bonds payable 615,000 615,000
TOTAL NONCURRENT LIABILITIES 1,140,000 1,140,000
TOTAL LIABILITIES 1,178,602 7,878 1,186,480
NET ASSETS
Invested in capital assets, net of related debt 1,042,052 242,069 1,284,121
Unrestricted 551,802 8,796 560,598
TOTAL NET ASSETS $ 1,593,854 $ 250,865 $ 1,844,719
The notes to the financial statemetns are an integral part of this statement.
-12-
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
Business -type Activities - Enterprise Funds
Other
Nonmajor Total
Proprietary Proprietary
Water Fund Funds Funds
OPERATING REVENUES
Charges for services $ 212,587 $ 108,671 $ 321,258
Water meter sales 2,676 - 2,676
Water connection charges 1,700 - 1,700
TOTAL OPERATING REVENUES 216,963 108,671 325,634
OPERATING EXPENSES
Personal services 83,814 38,356 122,170
Supplies 8,028 515 8,543
Professional services 59,494 64,878 124,372
Repair and maintenance 7,636 3,850 11,486
Insurance 2,985 - 2,985
Utilities 97,678 2,832 100,510
Depreciation 74,070 10,408 84,478
TOTAL OPERATING EXPENSES 333,705 120,839 454,544
OPERATING LOSS (116,742) (12,168) (128,910)
NONOPERATING REVENUES (EXPENSES)
Interest income 22,595 512 23,107
Rents 27,730 27,730
Amortization of bond discount (1,405) (1,405)
Interest expense (29,465) (29,465)
TOTAL NONOPERATING REVENUES (EXPENSES) 19,455 512 19,967
TOTAL CHANGE IN NET ASSETS (97,287) (11,656) (108,943)
NET ASSETS, JANUARY 1 1,691,141 262,521 1,953,662
NET ASSETS, DECEMBER 31 $ 1,593,854 $ 250,865 $ 1,844,719
The notes the fmancial statements are an integral part of this statement.
-13-
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2004
Business -type Activities - Enterprise Funds
Other
Nonmajor Total
Proprietary Proprietary
Water Fund Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from users $ 231,054 $ 93,256 $ 324,310
Payments to suppliers (160,067) (69,013) (229,080)
Payments to employees (83,814) (38,356) (122,170)
NET CASH USED BY OPERATING ACTIVITIES
(12,827) (14,113) (26,940)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets - (11,665) (11,665)
Principal paid on long-term debt (25,000) (25,000)
Interest paid on long-term debt (29,568) (29,568)
NET CASH USED BY CAPITAL
AND RELATED FINANCING ACTIVITIES (54,568) (11,665) (66,233)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 22,595 512 23,107
NET DECREASE IN
CASH AND CASH EQUIVALENTS (44,800) (25,266) (70,066)
CASH AND CASH EQUIVALENTS, JANUARY 1 1,059,937 22,757 1,082,694
CASH AND CASH EQUIVALENTS (DEFICIT), DECEMBER 31 $ 1,015,137 $ (2,509) $ 1,012,628
The notes to the financial statements are an integral part of this statement.
-14-
Business -type Activities - Enterprise Funds
Other
Nonmajor Total
Proprietary Proprietary
Water Fund Funds Funds
RECONCILIATION OF OPERATING LOSS
TO NET CASH USED BY OPERATING ACTIVITIES
Operating loss $ (116,742) $ (12,168) $ (128,910)
Adjustments to reconcile operating loss
to net cash used by operating activities :
Depreciation and amortization 72,665 10,408 83,073
Other income 27,730 27,730
(Increase) decrease in assets:
Accounts receivable (8,727) (15,415) (24,142)
Deferred special assessments (4,912) - (4,912)
Bond discount 1,405 1,405
Increase (decrease) in liabilities:
Accounts payable 12,556 2,357 14,913
Accrued salaries payable 2,561 705 3,266
Due to other governments 637 637
NET CASH USED BY OPERATING ACTIVITIES $ (12,827) $ (14,113) $ (26,940)
-15-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Lake Elmo (the City), Minnesota, operates under "Optional Plan A" as defined in the State of Minnesota
statutes. The City is governed by an elected Mayor and a four -member Council. The Council exercises legislative
authority and determines all matters of policy. The Council appoints personnel responsible for the proper
administration of all affairs relating to the City. The City has considered all potential units for which it is financially
accountable, and other organizations for which the nature and significance of their relationship with the City are
such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental
Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability.
These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the
primary government to impose its will on that organization or (2) the potential for the organization to provide
specific benefits to, or impose specific financial burdens on the primary government. The City has no component
units.
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 primary government and its component units.
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. Likewise, the primary government is
reported separately from certain legally separate component units for which the primary government is financially
accountable.
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 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.
Governmental fund financial statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. 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 City considers revenues to be
available if 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, license 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 City.
-16-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is
recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in
the year in which the resources are measurable and become available.
Non -exchange transactions, in which the City receives value without directly giving equal value in return, include
property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in
the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing
requirements, which specify the year when the resources are required to be used or the year when use is first
permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose,
and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a
modified accrual basis, revenue from non -exchange transactions must also be available before it can be recognized.
Deferred revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants
and entitlements received before eligibility requirements are met are also recorded as deferred revenue. On the
modified accrual basis, receivables that will not be collected within the available period have also been reported as
deferred revenue in the fund financial statements.
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
The City 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 Debt service fund accounts for the resources accumulated and payments made for principal and interest on
long-term general obligation debt of governmental funds.
The Infrastructure Reserve fund accounts for the -acquisition of fixed assets or construction for this major
capital project not being financed by proprietary funds.
The Equipment Acquisition fund accounts for the acquisition of fixed assets or construction for this major
capital project not being financed by proprietary funds.
The City reports the following major proprietary fund:
The Water fund accounts for the activities of the City's water distribution operations.
Additionally, the City reports the following fund types:
Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of
others.
The agency fund is custodial in nature and does not present results of operations or have a measurement focus.
Agency funds are accounted for using the modified accrual basis of accounting. This fund is used to account
for assets that the government holds for others in an agency 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 financial statements to the extent that those standards do
not conflict with or contradict guidance of GASB. Governments also have the option of following subsequent
private -sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The
City has elected not to follow subsequent private -sector guidance.
-17-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
As a general rule the effect of interfund activity has been eliminated from government -wide financial statements.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contribution, 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.
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 City's enterprise funds are
charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
D. Assets, Liabilities, and Net Assets or Equity
Deposits and Investments
The City'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.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other
authorized investments. Earnings from such investments are allocated on the basis of applicable participation by
each of the funds.
Minnesota statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate
bonds, repurchase agreements, the State Treasurer's Investment Pool and shares of investment companies registered
under the Federal Investment Company Act of 1940 and whose only investments are obligations guaranteed by the
United States or its agencies.
Investments for the City are stated with fair value. The Minnesota Municipal Money Market Fund 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 share.
Due To/From other Funds
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or
"advances to/from other funds" (i.e., the non -current portion of interfund loans). All other outstanding balances
between funds are reported as "due to/from other funds." Any residual balances outstanding between the
governmental activities and business -type activities are reported in the government -wide financial statements as
"internal balances."
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account
in applicable governmental funds to indicate that they are not available for appropriation and are not expendable
available financial resources.
-18-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Property Taxes
The Council annually adopts a tax levy in December and certifies it to the County for collection the following year.
The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on
taxable property within the City on January 1 and are payable by the property owners in two installments. The taxes
are collected by the County Treasurer and tax settlements are made to the City during January, July and December
each year.
Taxes payable on homestead property, as defined by Minnesota statutes, were partially reduced by a market value
credit aid. The credit is paid to the City by the State of Minnesota (the State) in lieu of taxes levied against the
homestead property. The State remits this credit in two equal installments in October and December each year.
Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a
deferred revenue liability for taxes not received within 60 days after year end in the fund statements.
Accounts Receivable
Accounts receivable include amounts billed for services provided before year end. Unbilled utility enterprise fund
receivables are also included for services provided in 2004. The City annually certifies delinquent water and sewer
accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful
accounts established.
Special Assessments
Special assessments represent the fmancing for public improvements paid for by benefiting property owners. These
assessments are recorded as receivable upon certification to the County. Special assessments are recognized as
revenue when they are received in cash or within 60 days after year end. All governmental special assessments
receivable are offset by a deferred revenue liability in the fund statements.
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.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, 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 City 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.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred
during the construction phase of capital assets of business -type activities is included as part of the capitalized value
of the assets constructed.
-19-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Property, plant and equipment of the primary government are depreciated using the straight-line method over the
following estimated useful lives:
Assets
Useful Lives
in Years
Buildings and improvements 10 - 40
Improvements other than buildings 15 - 30
Machinery and equipment 3 - 15
Infrastructure 20 - 60
Compensated Absences
It is the City's policy to permit employees to accumulate a limited amount of earned but unused vacation and sick
leave. Employees leaving the City after 1 full year of service will be compensated for vacation accrued to the date
of separation up to 30 days. An employee leaving the City with 5 years of employment is entitled to one half of
accumulated and unused sick leave or 50 days pay, which ever is less. All vacation pay is accrued when incurred in
the government -wide and proprietary fund financial statements. In governmental fund types the cost of these
benefits is recognized when payments are made to the employees.
Long-term Obligations
In the government -wide financial statements, and proprietary fund types in the fund 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 straight-line method, which approximates the
effective interest method.
In the fund financial statements, governmental fund types recognized 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 fmancing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
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.
Comparative Data/Reclassifications
Comparative total data for the prior year have not been presented for the governmental -wide and all fund financial
statements as this is the first year of implementation of GASB Statement No. 34.
Note 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Information
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States
of America for all governmental funds except the capital projects funds, which adopt project -length budgets. All
annual appropriations lapse at fiscal year end. The City does not use encumbrance accounting.
-20-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - CONTINUED
In August of each year, all departments of the City submit requests for appropriations to the City Administrator so
that a budget may be prepared. Before September 151, the proposed budget is presented to the Council for review.
The Council adopts a preliminary maximum budget. Truth -in -taxation notices are mailed out to residents by
Washington County. The Council holds public hearings and adopts a budget and tax levy in December.
The appropriated budget is prepared by fund, function and department. The City's department heads may make
transfers of appropriations within a department. Transfers of appropriations between depaitiuents require the
approval of the Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally
exceed appropriations) is the depaL latent level. Budgeted amounts are as originally adopted, or as amended by the
Council. No budget amendments were made during the year.
B. Deficit Fund Equity
The capital project's infrastructure reserve fund had a deficit balance of $193,623. The City plans to eliminate the
deficit through future special assessment collections.
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 temporary investments". For purposes of identifying the risk of investing public funds, the balances
are categorized as follows:
Deposits
In accordance with Minnesota statutes and as authorized by the Council, the City maintains deposits at those
depository banks, all of which are members of the Federal Reserve System.
Minnesota statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market
value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds (140 percent in
the case of mortgage notes pledged).
Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and
certain other State or local government obligations. Minnesota statutes require that securities pledged as collateral
be held in safekeeping by the City or in a financial institution other than that furnishing the collateral.
At year end, the City's carrying amount of deposits was $4,534,525 and the bank balance was $4,625,997. Of the
bank balance, $3,574,012 was covered by federal depository insurance. The remaining balance was covered by
collateral held in the City's name.
Investments
Investments are categorized into these three categories of credit risk:
(1) Insured or registered, or securities held by the City or its agent in the City's name.
(2) Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's
name.
(3) Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent, but
not in the City's name.
-21-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
At year end, the City's investment balances were as follows:
1
Category
2
3
Carrying
Amount/
Fair Value
U.S. government securities $ 3,920,975 $ $ - $ 3,920,975
Investments not subject to categorization:
Broker market accounts 405,643
Total investments $ 4,326,618
A reconciliation of cash and investments as shown on the balance sheet for the City follows:
Carrying amount of deposits $ 4,534,525
Investments 4,326,618
Petty cash 100
Total $ 8,861,243
The following reconciles the total cash and temporary investments to the basic financial statements.
Government -wide $ 8,718,795
Agency 142,448
Total
B. Receivables
Deferred Revenue
The due from other governments in the General fund is due from Washington County.
$ 8,861,243
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 and unearned revenue reported in the governmental funds were as follows:
Fund
General
Delinquent taxes
Debt service
Special assessments
Infrastructure Reserve
Special assessments
MSA Construction
Special assessments
Total
Unavailable Unearned
$ 21,569 $
325,640
194,252
24,742
$ 566,203 $
-22-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
C. Capital Assets
Capital asset activity for the year ended December 31, 2004 was as follows:
Governmental activities
Capital assets not being depreciated
Land
Construction in progress
Total capital assets
not being depreciated
Capital assets, being depreciated
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total capital assets
being depreciated
Less accumulated depreciation for
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total accumulated
depreciation
Total capital assets
being depreciated, net
Governmental activities
capital assets, net
Beginning
Balance
Increases
Decreases
Ending
Balance
$ 1,730,616 $ 224,721 $ (127,500) $ 1,827,837
248,131
1,730,616 472,852
489,411
673,801 82,831
1,225,983 347,683
22,302
2,411,497 430,514
(247,579) (9,108)
(211,976) (34,664)
(809,702) (106,025)
(18,957) (1,115)
(1,288,214) (150,912)
1,123,283 279,602
248,131
(127,500) 2,075,968
489,411
756,632
(100,000) 1,473,666
22,302
(100,000) 2,742,011
(256,687)
(246,640)
43,792 (871,935)
(20,072)
43,792 (1,395,334)
(56,208) 1,346,677
$ 2,853,899 $ 752,454 $ (183,708) $ 3,422,645
-23-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Beginning Ending
Balance Increases Decreases Balance
Business -type activities
Capital assets not being depreciated
Land $ 36,573 $ $ $ 36,573
Capital assets being depreciated
Machinery and equipment 112,270 112,270
Infrastructure 2,508,683 11,665 2,520,348
Total capital assets
being depreciated 2,620,953 11,665 2,632,618
Less accumulated depreciation for
Machinery and equipment (23,087) (8,262) (31,349)
Infrastructure (637,505) (76,216) (713,721)
Total accumulated
depreciation (660,592) (84,478) (745,070)
Total capital assets
being depreciated, net 1,960,361 (72,813) 1,887,548
Business -type activities
capital assets, net $ 1,996,934 $ (72,813) $ - $ 1,924,121
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government $ 14,166
Public safety 47,785
Public works 47,897
Culture and recreation 41,064
Total depreciation expense - governmental activities $ 150,912
Business -type activities
Water $ 74,070
Sewer 10,408
Total depreciation expense - business -type activities $ 84,478
-24-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
D. Interfund Receivables, Payables and Transfers
During 2002, the City authorized a $500,000 loan from the general fund to the Water fund to fund project costs.
Terms have not been established.
Interfund transfers
The following budgeted transfers were made during the year:
Transfers in Transfers out
Governmental funds
General $ - $ 149,000
Equipment acquisition 149,000
Total governmental funds
E. Long-term Debt
General Obligation Bonds
$ 149,000 $ 149,000
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. General obligation bonds have been issued for both general government and proprietary activities. These
bonds are reported in the proprietary funds if they are expected to be repaid from proprietary fund revenues.
General obligation bonds are direct obligations and pledge the full faith and credit of the government. The G.O.
Improvement Bonds have been issued to finance improvements. They will be repaid with special assessment
collections and ad valorem tax levies. The City has issued the following G.O. Water Revenue Bonds for
improvements to its water system. They will be repaid with the net revenues of the system. General obligation
bonds currently outstanding are as follows:
Authorized Interest Issue Maturity Balance at
and Issued Rate Date Date Year End
Govermental Activities
G.O. Improvement Bonds
G.O. Improvement
Bonds of 2001 $ 1,080,000 2.75-4.90 % 10/01/01 02/01/17 $ 950,000
G.O. Improvement
Bonds of 2002A 340,000 2.85-4.60 05/01/02 01/01/12 245,000
G.O. CIP Bonds,
Series 2004A 4,090,000 3.10-4.40 11/01/04 02/01/25 4,090,000
Total G.O. Improvement Bonds $ 5,285.000
Business -type Activities
G.O. Revenue Bonds
G.O. Water Revenue
Bonds - 2002B
$ 730,000 2.25-5.00 % 05/22/02 12/01/21 $ 640,000
-25-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending
December 31,
2005
2006
2007
2008
2009
2010 - 2014
2015 - 2019
2020 - 2025
Governmental Activities
G.O. Improvement Bonds
Principal Interest Total
$ 130,000 $ 165,985
225,000 199,300
295,000 190,623
240,000 181,478
250,000 173,022
1,270,000 725,295
1,280,000 470,118
1,595,000 217,150
$ 295,985
424,300
485,623
421,478
423,022
1,995,295
1,750,118
1,812,150
Business -type Activities
G.O. Revenue Bonds
Principal Interest Total
$ 25,000
25,000
30,000
30,000
30,000
175,000
220,000
105,000
$ 28,768 $ 53,768
27,918 52,918
27,030 57,030
25,920 55,920
24,765 54,765
103,945 278,945
59,985 279,985
8,000 113,000
Total $ 5,285,000 $ 2,322,970 $ 7,607,970 $ 640.000 $ 306,330 $ 946.330
Changes in Long-term Liabilities
Long-term liability activity for the year ended December 31, 2004 was as follows:
Governmental activities
G.O. Improvement
Bonds
Compensated Absences
Payable
Beginning
Balance Additions
$ 1,325,000
68,409
Total governmental
activities $ 1,393,409
Business -type activities
G.O. Water
Revenue Bonds
$ 4,090,000
$ 4.090,000
Ending
Reductions Balance
Due Within
One Year
$ 130,000 $ 5,285,000 $ 130,000
10,345 58,064 8,129
$ 140,345 $ 5,343,064 $ 138,129
$ 665,000 $ $ 25,000 $ 640,000 $ 25,000
-26-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
F. Reserved/Designated Fund Balance
Fund balances in the various funds have been reserved and designated for the following purposes as of
December 31, 2004:
Fund
Reserved
Debt service
Unreserved - Designated
General
Total designated fund balance
Note 4: DEFINED PENSION PLANS - STATEWIDE
A. Plan Description
Purpose Amount
Debt service $ 188,509
Community opinion survey $ 10,000
Public access 77,465
Building projects 1,258,640
Administrative contingency 40,000
Cash flow 987,818
$ 2,373,923
All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the
Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees
Retirement Fund (PERF), which is a cost -sharing, multiple -employer retirement plan. This plan is established and
administered in accordance with Minnesota statutes, chapters 353 and 356.
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.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of
eligible members. Benefits are established by Minnesota statute, and vest after three years of credited service. The
defined retirement benefits are based on a member's highest average salary for any five successive years of
allowable service, age, and years of credit at termination of service.
Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member
receives the higher of the 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 is 2.2 percent of average salary for each of the first 10 years of
service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1, 2
percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the
annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan
for each year of service. For PERF members whose annuity is calculated using Method 1, a full annuity is available
when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking
early retirement.
There are different types of annuities available to members upon retirement. A normal 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 reduce the monthly normal annuity amount, because the annuity is
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.
-27-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 4: DEFINED PENSION PLANS - STATEWIDE - CONTINUED
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. That report may be obtained on the web at www.mnpera.org, by writing to PERA, 60
Empire Street, #200, St. Paul, Minnesota 55102 or by calling (651) 296-7460 or 1-800-652-9026.
B. Funding Policy
Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the State legislature. PERE Basic Plan members and Coordinated Plan members are
required to contribute 9.10 percent and 5.10 percent, respectively, of their annual covered salary. The City is
required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan PERF
members, and 5.53 percent for Coordinated Plan PERF members. The City's contributions to the PERF for the
years ending December 31, 2004, 2003, and 2002 were $29,474, $27,408 and $31,044, respectively. The City's
contributions were equal to the contractually required contributions for each year as set by Minnesota statute.
Note 5: OTHER INFORMATION
A. Legal Debt Margin
In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of two percent of
the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and
therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax
increments. No debt is applicable to this limit at year end.
B. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and
omissions; injuries to employees; and natural disasters for which the City carries insurance. The City obtains
insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT), which is a risk sharing
pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers
compensation and property and casualty insurance. The LMCIT is self sustaining through member premiums and
will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not
exceeded the City's coverage in any of the past three fiscal years.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The
City's management is not aware of any incurred but not reported claims.
-28-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 6: LAKE ELMO VOLUNTEER FIREFIGHTER'S RELIEF ASSOCIATION
A. Plan Description
All members of the Lake Elmo Fire Depai tinent (Department) are covered by a defined benefit plan administered by
the Lake Elmo Firemen's Relief Association (Association). The plan is a single employer retirement plan and is
established and administered in accordance with Minnesota statute, chapter 69.
The Association maintains a separate Special fund to accumulate assets to fund the retirement benefits earned by the
Department's membership. Funding for the Association is derived from an insurance premium tax in accordance
with the Volunteer Firefighter's Relief Association Financing Guidelines Act of 1971 (chapter 261 as amended by
chapter 509 of Minnesota statutes 1980). Funds are also derived from investment income.
The Association issues a publicly available financial report that includes financial statements and required
supplementary information. The report may be obtained by writing to Lake Elmo Firefighter's Relief Association,
3800 Laverne Avenue North, Lake Elmo, MN 55042.
B. Funding Policy
The financial requirements of the Special fund are determined in accordance with Minnesota statutes, section
69.772, which requires the payment of pension benefits in a lump sum or optionally in annual installments. The
benefits are payable after age 50, 20 years of service, and 10 years of Association membership or upon death. The
City's annual pension cost for the current year and related information for the plan is as follows:
Annual pension cost
Contributions made
City
State aid
$ 96,153
41,995
54,158
Actuarial valuation date 12/31/04
Actuarial cost method Entry age normal
Amortization method Level dollar closed
Remaining amortization period
Normal cost
Prior service cost
20 years
10 years
Asset valuation method Fair Value
Actuarial assumptions
Investment rate of return 5%
Projected salary increases N/A
Inflation rate N/A
Cost of living adjustments None
-29-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 6: LAKE ELMO VOLUNTEER FIREFIGHTER'S RELIEF ASSOCIATION - CONTINUED
Three Year Trend Information
Annual Percentage
Year Pension of APC Net Pension
Ending Cost (APC) Contributed Obligation
12/31/04 $ 96,153 100 %
12/31/03 63,387 100
12/31/02 47,067 100
Required Supplementary Information
Assets in
Excess of Pension
Actuarial Actuarial Actuarial (Unfunded) Benfit
Valuation Value of Accrued Accrued Funded Per Year
Date Assets Liability Liability Rate of Service
12/31/04 * * * * % *
12/31/03 $ 623,299 $ 611,613 $ 11,686 101.9 $ 3,100
12/31/02 473,896 559,496 (85,600) 84.7 3,100
* Information unavailable at the time of the audit.
-30-
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
Note 7: CHANGE IN ACCOUNTING PRINCIPLE AND PRIOR PERIOD ADJUSTMENTS
During fiscal year 2004, the City implemented several new accounting pronouncements issued by the Government
Accounting Standards Board (GASB). They are Statement No. 34, "Basic Financial Statements - and Management's
Discussion and Analysis - for State and Local Governments ", Statement No. 37, "Basic Financial Statements - and
Management's Discussion and Analysis - for State and Local Governments: Omnibus ", and Statement No. 38, "Certain
Financial Statement Note Disclosures ", paragraphs 6 through 11.
Because of implementation of the new standards, an adjustment is required for the December 31, 2003, carry forward
(net asset) balance. The following schedule reconciles the January 1, 2004 balance to the January 1, 2004 net asset
balance using the new accounting standards.
Governmental funds
Fund balance, December 31, 2003 $ 3,935,936
Adjustments:
Net book value of capital assets, including infrastructure 2,853,899
Bonds payable, net (1,325,000)
Capital lease
Accrued interest payable (17,773)
Compensated absences payable (68,409)
Deferred revenue on special assessments receivable 509,357
Deferred revenue on taxes receivable 23,157
Total net assets as restated, January 1, 2004
Proprietary funds
Retained earnings, December 31, 2003
Plus: Contributed capital
Total net assets as restated, January 1, 2004
$ 5,911,167
$ 1,135,368
818,294
$ 1,953,662
-31-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF LAKE ELMO
LAKE ELMO, MINNESOTA
YEAR ENDED
DECEMBER 31, 2004
CITY OF LAKE ELMO, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2004
Capital Projects Total
402 404 406 Nonmajor
MSA Park Section 33 Governmental
Construction Acquisition Utilities Funds
ASSETS
Cash and temporary investments $ 567,548 $ 264,990 $ 91,831 $ 924,369
Special assessments
Deferred 24,742 24,742
TOTAL ASSETS $ 592,290 $ 264,990 $ 91,831 $ 949,111
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts and contracts payable $ 51 $ 152 $ $ 203
Deferred revenue 24,742 - 24,742
TOTAL LIABILITIES 24,793 152 24,945
FUND BALANCES
Unreserved
Undesignated 567,497 264,838 91,831 924,166
TOTAL LIABILITIES AND FUND BALANCES $ 592,290 $ 264,990 $ 91,831 $ 949,111
The notes to the financial statements are an integral part of this statement.
-32-
CITY OF LAKE ELMO, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2004
Capital Projects Total
402 404 406 Nonmajor
MSA Park Section 33 Governmental
Construction Acquisition Utilities Funds
REVENUES
Intergovernmental
MSA construction $ 136,508 $ $ - $ 136,508
Special assessments 268 268
Interest on investments 11,462 7,615 1,976 21,053
Miscellaneous
Park dedication fees 17,400 17,400
Other - 11,500 11,500
TOTAL REVENUES 148,238 36,515 1,976 186,729
EXPENDITURES
Capital outlay
Public works 6,075 1,672 7,747
Park and recreation 176,099 176,099
TOTAL EXPENDITURES 6,075 176,099 1,672 183,846
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 142,163 (139,584) 304 2,883
NET CHANGE IN FUND BALANCES 142,163 (139,584) 304 2,883
FUND BALANCES, JANUARY 1 425,334 404,422 91,527 921,283
FUND BALANCES, DECEMBER 31 $ 567,497 $ 264,838 $ 91,831 $ 924,166
The notes to the financial statements are an integral part of this statement.
-33-
CITY OF LAKE ELMO, MINNESOTA
NONMAJOR PROPRIETARY FUNDS
COMBINING STATEMENT OF NET ASSETS
DECEMBER 31, 2004
Total
Nonmajor
Proprietary
Sewer Storm Sewer Funds
ASSETS
CURRENT ASSETS
Cash and temporary investments (deficit) $ 6,493 $ (9,002) $ (2,509)
Receivables
Accounts 6,008 13,175 19,183
TOTAL CURRENT ASSETS 12,501 4,173 16,674
NONCURRENT ASSETS
Capital assets
Infrastructure 346,607 11,665 358,272
Less accumulated depreciation (116,203) - (116,203)
TOTAL CAPITAL ASSETS
(NET OF ACCUMULATED DEPRECIATION) 230,404 11,665 242,069
TOTAL ASSETS 242,905 15,838 258,743
CURRENT LIABILITIES
Accounts payable 767 3,957 4,724
Salaries payable 3,154 - 3,154
TOTAL CURRENT LIABILITIES 3,921 3,957 7,878
NET ASSETS
Invested in capital assets, net of related debt 230,404 11,665 242,069
Unrestricted 8,580 216 8,796
TOTAL NET ASSETS $ 238,984 $ 11,881 $ 250,865
The notes to the financial statements are and integral part to this statement.
-34-
CITY OF LAKE ELMO, MINNESOTA
NONMAJOR PROPRIETARY FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2004
Total
Nonmajor
Proprietary
Sewer Storm Sewer Funds
OPERATING REVENUES
Charges for services $ 23,158 $ 85,513 $ 108,671
OPERATING EXPENSES
Personal services 23,580 14,776 38,356
Supplies 515 515
Professional services 8,757 56,121 64,878
Repair and maintenance 3,502 348 3,850
Utilities 2,832 2,832
Depreciation 10,408 10,408
TOTAL OPERATING EXPENSES 49,079 71,760 120,839
OPERATING INCOME (LOSS) (25,921) 13,753 (12,168)
NONOPERATING REVENUES (EXPENSES)
Interest income 196 316 512
CHANGE IN NET ASSETS (25,725) 14,069 (11,656)
NET ASSETS (LIABILITIES), JANUARY 1 264,709 (2,188) 262,521
NET ASSETS, DECEMBER 31 $ 238,984 $ 11,881 $ 250,865
The notes to the financial statements are an integral part to this statement.
-35-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
CITY OF LAKE ELMO, MINNESOTA
NONMAJOR PROPRIETARY FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2004
Sewer
Total
Non -Major
Storm Proprietary
Water Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from users $ 20,918 $ 72,338 $ 93,256
Payments to suppliers (13,798) (55,215) (69,013)
Payments to employees (23,580) (14,776) (38,356)
NET CASH USED BY OPERATING ACTIVITIES
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets
(16,460) 2,347 (14,113)
(11,665) (11,665)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 196 316 512
NET DECREASE IN
CASH AND CASH EQUIVALENTS
' CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS (DEFICIT), DECEMBER 31
(16,264) (9,002) (25,266)
22,757 22,757
$ 6,493 $ (9,002) $ (2,509)
RECONCILIATION OF OPERATING LOSS
TO NET CASH USED BY OPERATING ACTIVITIES
Operating loss $ (25,921) $ 13,753 $ (12,168)
Adjustments to reconcile operating loss
to net cash used by operating activities:
Depreciation and amortization 10,408 10,408
(Increase) decrease in assets:
Accounts receivable (2,240) (13,175) (15,415)
Increase (decrease) in liabilities:
Accounts payable 588 1,769 2,357
Accrued salaries payable 705 705
NET CASH USED BY OPERATING ACTIVITIES $ (16,460) $ 2,347 $ (14,113)
The notes to the fmancial statements are an integral part of this statement.
-36-
CITY OF LAKE ELMO, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2004
(With comparative totals for the year ended December 31, 2003)
2004 2003
Variance With
Final Budget
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
REVENUES
Taxes
Property $ 1,721,847 $ 1,721,847 $ 1,680,116 $ (41,731) $ 1,610,457
Franchise 1,920 1,920 17,120 15,200 14,225
Total 1,723,767 1,723,767 1,697,236 (26,531) 1,624,682
Licenses and permits
Business 10,570 10,570 11,960 1,390 10,680
Nonbusiness 209,354 209,354 169,109 (40,245) 209,132
Total 219,924 219,924 181,069 (38,855) 219,812
Intergovernmental
Federal
CDBG 10,000 10,000 34,866 24,866 54,500
FEMA - 116,343 116,343 -
State
Property tax credits - 5,335 5,335 4,947
MSA - maintenance - _ (1)
Fire state aid 25,000 25,000 54,158 29,158 40,420
Other 2,750 2,750 36,967 34,217 5,272
County/Local 25,000 25,000 17,724 (7,276) 25,258
Total 62,750 62,750 265,393 202,643 130,396
Charges for services 78,000 78,000 139,507 61,507 85,270
Fines and forfeitures 52,015 52,015 83,808
Interest on investments 140,000 140,000 49,890 (90,110) 47,110
Miscellaneous 34,000 34,000 18,392 (15,608) 38,988
TOTAL REVENUES 2,258,441 2,258,441 2,403,502 145,061 2,230,066
-37-
CITY OF LAKE ELMO, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2004
(With comparative totals for the year ended December 31, 2003)
2004 2003
Variance -
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative) Actual
EXPENDITURES
Current
General government
Mayor and Council
Personal services $ 13,026 $ 13,026 $ 11,663 $ 1,363 $ 13,026
Other services and charges 14,950 14,950 29,408 (14,458) 40,964
Total 27,976 27,976 41,071 (13,095) 53,990
Election
Personal services 7,000 7,000 8,246 (1,246) 4,346
Supplies 400 400 400 -
Other services and charges 800 800 980 (180) 417
Total 8,200 8,200 9,226 (1,026) 4,763
Administration
Personal services 218,098 218,098 180,410 37,688 215,572
Supplies 9,600 9,600 6,855 2,745 8,173
Other services and charges 80,310 80,310 72,316 7,994 67,848
Total 308,008 308,008 259,581 48,427 291,593
Building
Supplies 1,000 1,000 482 518 844
Other services and charges 27,940 27,940 28,810 (870) 26,537
Total 28,940 28,940 29,292 (352) 27,381
Professional services
Assessor 35,000 35,000 32,766 2,234 35,553
Accounting 24,000 24,000 20,574 3,426 20,331
Legal 160,000 160,000 186,169 (26,169) 249,227
Engineering - 30,612 (30,612) 24,695
Total 219,000 219,000 270,121 (51,121) 329,806
Planning and zoning
Personal services 98,081 98,081 90,560 7,521 86,598
Supplies 1,000 1,000 243 757 349
Other services and charges 102,048 102,048 66,747 35,301 109,044
Total 201,129 201,129 157,550 43,579 195,991
Total general government 793,253 793,253 766,841 26,412 903,524
-38-
CITY OF LAKE ELMO, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2004
(With comparative totals for the year ended December 31, 2003)
EXPENDITURES - CONTINUED
Current - continued
Public safety
Police
Contracted services
2004 2003
Variance -
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative) Actual
$ 322,000 $ 322,000 $ 337,629 (15,629) $ 311,325
Fire protection
Personal services 124,733 124,733 118,721 6,012 119,155
2% fire aid 25,000 25,000 67,896 (42,896) 40,420
Supplies 14,200 14,200 7,912 6,288 16,193
Other services and charges 133,422 133,422 137,230 (3,808) 112,405
Total 297,355 297,355 331,759 (34,404) 288,173
Building inspector
Personal services 152,534 152,534 143,916 8,618 163,883
Supplies 5,500 5,500 990 4,510 2,171
Other services and charges 31,777 31,777 14,742 17,035 988
Total 189,811 189,811 159,648 30,163 167,042
Animal control
Supplies 500 500 500
Other services and charges 12,000 12,000 19,403 (7,403) 14,552
Total 12,500 12,500 19,403 (6,903) 14,552
Total public safety 821,666 821,666 848,439 (26,773) 781,092
Public works
General
Personal services 148,449 148,449 118,073 30,376 108,052
Supplies 83,800 83,800 42,775 41,025 62,228
Other services and charges 74,965 74,965 81,945 (6,980) 67,306
Total 307,214 307,214 242,793 64,421 237,586
Street lighting 16,800 16,800 18,351 (1,551) 15,313
Total public works 324,014 324,014 261,144 62,870 252,899
-39-
CITY OF LAKE ELMO, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2004
(With comparative totals for the year ended December 31, 2003)
2004 2003
Variance -
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative) Actual
EXPENDITURES - CONTINUED
Current - Continued
Culture and recreation
Parks
Personal services $ 103,974 $ 103,974 $ 80,166 23,808 $ 82,854
Supplies 19,950 19,950 7,564 12,386 8,999
Other services and charges 24,350 24,350 20,483 3,867 21,736
Total culture and recreation 148,274 148,274 108,213 40,061 113,589
Total current expenditures 2,087,207 2,087,207 1,984,637 102,570 2,051,104
Capital outlay
Public safety 10,000 10,000 13,178 (3,178) 7,313
Public works 14,250 14,250 5,836 8,414 7,318
Total capital outlay 24,250 24,250 19,014 5,236 14,631
TOTAL EXPENDITURES 2,111,457 2,111,457 2,003,651 107,806 2,065,735
EXCESS (DEFICIENCY) OF REVENUE
OVER (UNDER) EXPENDITURES 146,984 146,984 399,851 252,867 164,331
OTHER FINANCING USES
Transfers out (254,693) (254,693) (149,000) 105,693 (244,042)
NET CHANGE IN FUND BALANCES (107,709) (107,709) 250,851 358,560 (79,711)
FUND BALANCES, JANUARY 1 2,123,072 2,123,072 2,123,072 2,202,783
FUND BALANCES, DECEMBER 31 $ 2,015,363 $ 2,015,363 $ 2,373,923 $ 358,560 $ 2,123,072
-40-
CITY OF LAKE ELMO, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2004
310 312
2001 G.O. 2002 G.O.
Improvement Improvement
Bond Bond Total
ASSETS
Cash and temporary investments $ 93,278 $ 95,231 $ 188,509
Special assessments receivable
Delinquent 388 388
Deferred 127,795 192,636 320,431
Special deferred 4,821 4,821
TOTAL ASSETS $ 226,282 $ 287,867 $ 514,149
LIABILITIES AND FUND BALANCES
LIABILITIES
Deferred revenue
FUND BALANCES
Reserved for debt service
$ 133,004 $ 192,636 $ 325,640
93,278 95,231 188,509
TOTAL LIABILITIES AND FUND BALANCES $ 226,282 $ 287,867 $ 514,149
-41-
CITY OF LAKE ELMO, MINNESOTA
DEBT SERVICE FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2004
REVENUES
Special assessments
Interest on investments
TOTAL REVENUES
310 312
2001 G.O. 2002 G.O.
Improvement Improvement
Bond Bond Total
$ 64,271 $ 36,385 $ 100,656
1,494 2,132 3,626
65,765 38,517 104,282
EXPENDITURES
Debt service
Principal 100,000 30,000 130,000
Interest and service charges 41,155 11,428 52,583
TOTAL EXPENDITURES 141,155 41,428 182,583
NET CHANGE IN FUND BALANCES (75,390) (2,911) (78,301)
FUND BALANCES, JANUARY 1 168,668 98,142 266,810
FUND BALANCES, DECEMBER 31 $ 93,278 $ 95,231 $ 188,509
-42-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
OTHER REPORTS
CITY OF LAKE ELMO
LAKE ELMO, MINNESOTA
YEAR ENDED
DECEMBER 31, 2004
ABDO
I'!EICK &
1J
Li MEYERSLLP
Certified Public Accountants & Consultants
Grandview Square
5201 Eden Avenue
Suite 370
Edina, MN 55436
REPORT ON MINNESOTA LEGAL COMPLIANCE
Honorable Mayor and Council
City of Lake Elmo, Minnesota
We have audited the financial statements of the City of Lake Elmo (the City), Minnesota as of and for the year ended
December 31, 2004, and have issued our report thereon dated February 23, 2005.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Minnesota Office of the
State Auditor pursuant to Minnesota statute, section 6.65. Accordingly, the audit included such tests of the accounting records
and such other auditing procedures as we considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Local Government covers six main categories of compliance to be tested:
contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, and
miscellaneous city provisions. Our study included all of the listed categories.
The results of our tests indicate that for the items tested, the City complied with the material terms and conditions of applicable
legal provisions.
This report is intended solely for the information and use of the Council, management and the Minnesota Office of the State
Auditor and is not intended to be and should not be used by anyone other than these specified parties.
February 23, 2005
Minneapolis, Minnesota
Alamo/ LL P
ABDO, EICK & MEYERS, LLP
Certified Public Accountants
-43-
952.835.9090 • Fax 952.835.3261
www.aemcpas.com
SICK &
IABDO
MEYERS
Certified Public Accountants & Consultants
Grandview Square
5201 Eden Avenue
Suite 370
Edina, MN 55436
REPORT ON INTERNAL CONTROL
Honorable Mayor and Council
City of Lake Elmo, Minnesota
In planning and performing our audit of the financial statements of the City of Lake Elmo (the City), Minnesota, for the year
ended December 31, 2004, 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. Our assessment of the
internal control was limited to obtaining an understanding of the internal control sufficient to plan our audit and did not include
tests of controls. However, we noted certain matters involving the internal control and its operation that we consider to be
reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable
conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal
control that, in our judgment, could adversely affect the City's ability to initiate, record, process, and report fmancial data
consistent with the assertions of management in the fmancial statements.
Reportable conditions are described on the schedule of findings.
This report is intended solely for the information and use of the Council, management and the Minnesota Office of the State
Auditor and is not intended to be and should not be used by anyone other than these specified parties.
February 23, 2005
Minneapolis, Minnesota
abk •'4\d(-
ABDO, EICK & MEYERS, LLP
Certified Public Accountants
-44-
952.835.9090 • Fax 952.835.3261
www.aemcpas.com
THIS PAGE IS LEFT BLANK
INTENTIONALLY
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF FINDINGS
DECEMBER 31, 2004
Finding Description
2004-1 Segregation of Duties
Our study and evaluation disclosed that because of the limited size of your office staff, the City has limited
segregation of duties. A good internal control structure contemplates and adequate segregation of duties so that
no one individual handles transactions from inception to completion. While we recognize that the City is not
large enough to permit an adequate segregation of duties in all respects, it is important that you be aware of this
reportable condition.
Management Response
Management has hired personnel and assigned the accounting duties to the personnel as needed with intention
to eliminate this comment in the 2005 report.
-45-
Lake Elmo
City Council
05-03-2005
Agenda Section: Finance
Agenda I Amended Municipal 2005 Fee schedule
Background Information for May 03, 2005:
511
The City has three independent enterprise funds for Water, Sewer and Surface Water. All three of the enterprise
funds rely on revenue from fees charged to support the services provided. Within the enterprise funds. similar to the
General Fund. we have operating and capital accounts. (ienerally, the operating accounts are funded by consumer
user fees such as water rates and the expense for the infrastructure (watermains, lift stations etc.) are covered through
WAC & SAC fees. The WAC & SAC fees charged are based on the cost for the infrastructure,
The City is currently going through the first phase of a water expansion project. In the near future the City will also
be considering installation of a new sewer main from the Old Village down to 1-94 freeway, We now have an
estimate on what the costs are for these projects.
Attached, please find ordinance no. 97-156 adoption of the amended 2005 fee schedule. The Fee schedule represents
an amendment to the WAC & SAC charges reflecting the current estimated cost of the infrastructure
projects.
Action Items:
Attachinents:
1.) Adopt Ordinance No. 97-1.56
amending the WAC & SAC Fees for
Calendar Year 2005
Person resnonsib
Tom Bouthilet
1, Ordinance No. 97-156
2. Ordinance Summary
CITY OF LAKE ELMO
WASHINGTON COUNTY, MINNESOTA
ORDINANCE NO. 97-156
AN ORDINANCE AMENDING MUNICIPAL FEES FOR CALENDAR YEAR 2005
The Lake Elmo City Council hereby adopts the following fee schedule amending
WAC and SAC charges for calendar year 2005 and directs that it be added to the Lake
Elmo Municipal Code as Appendix A.
Appendix A — 2005 Fee Schedule
ADOPTION DATE: Passed by the Lake Elmo City Council on the 3rd day of May,
2005.
CITY OF LAKE ELMO
By:
Dean Johnston
Its: Mayor
ATTEST:
Martin Rafferty
Its: City Administrator
EFFECTIVE DATE: This Ordinance shall be effective the day of , 2005.
PUBLICATION DATE: Published on the day of , 2005.
Appendix A
Development, Service,
13uilding, Etc,
Amateur Radio Antenna
Appeal (to Board of Adjustment and Appeals)
Assessment Search
Building Demolition
First 1000 Square Feet
Each Additional 1000 sq feet or portion thereof
Burning Permits
Residential
Commercial
Comprehensive Plan Amendment
Conditional Use Permit (CUP)
<new or amended>
CONTRACTOR LICENSE FEES
Blacktopping
Excavator License
Heating and A/C
Sign Installer
Solid Waste Hauler
Tree Contract
COPY SERVICES
Copies
City Map - colored
Code Book
Sections 1, 2, 4, 6-12, 14
Section 3
Section 5 and 13
Comprehensive Plan
OP Ordinance
Parks Plan
Culverts in Developments with Rural Section
Dog License
Unlicensed dog (first impound)
Licensed dog (first impound)
Cat Impound (first impound)
Subsequent dog/cat impound
Duplicate License or Tag
Driveway
Residential
Commercial
Excavating and Grading
False Alarm
1 to 3 False alarms
In excess of 3 up to and including 6 false alarms
alarms within a twelve (12) month period
Residential
Commercial
In excess of six false alarms within a twelve
(12) month period
Residential
Cotrunercial
Flood Plain Management Permit
Fuel Tank Removal (Underground)
Heating
New Residential
Addition to Residential
Commercial (New or Addition)
Lawn Sprinklers
2005 Amended Fee Schedule Revised May. 05
Fee
Escrow or Additional Charge
2 .0
$50.00
$20.00
$100.00
$10.00
$35.00
$70.00
$1,200.00
$950.00
$50.00
$50.00
$50.00
$50.00
$100,00
$50.00
$1.00
$3.00
$150.00
$10.00
$50.00
$25.00
$100.00
$10.00
$75,00
$100.00
$10,00
$50.00
$25.00
$25.00
$25,00
$1.00
.50 surcharge
.50 surcharge
$50,00 .50 surcharge
$150.00 .50 surcharge
Erosion Control Bond, Escrow, or Letter of
Credit: 1500.00 per acre.
$100.00
No Charge
$100.00
$300.00
$175.00
$500.00
$750.00
$50,00
$125.00
$50.00
Minimum 150.00 or one percent of total cost
of heating project
$110.00
1500.00 escrow
.50 surcharge
.50 surcharge
.50 surcharge
.50 surcharge
.50 surcharge
Appendix A
Development, Service, Pee Escrow or Additional Charge
Building, Etc.
Liquor
Club On -Sale Intoxicating
Off -Sale Intoxicating
Off -Sale Non -Intoxicating
On -Sale Intoxicating
On -Sale Investigation
On -Sale Non -Intoxicating
On -Sale Sunday Intoxicating
Temporary Non -Intoxicating
Wine
Lot Line Adjustment
Manufactured Home Parks
Nev
Move home out of City
Move into City
Minor Subdivision
Moving House or Primary Structure into City
New Construction Plan Review
Park Dedication (up to 3 lots)
Parking Lots
New Commercial
Existing Commercial
Platting
Concept (PUD or OP)
Pteliminary Plat (and Development Stage)
$100.00 per year
$200.00 per year
$150.00 per year
$1500.00 per year
$350.00
$100,00 per year
$200.00 per year
$25.00 per event
$300.00 per year
$250.00
$1,000.00
$50.00
$100.00
$925.00
$500.00
er 1997 UBC (65% of building permit fee)
$3000.00 for each newly created lot
$150.00
$75.00
$1,150.00
$1,700.00
Final Plat (and Final Plan) $1,150,00
Plumbing
New Residential
Addition to Residential
Commercial (New or Addition)
Private Roads (pernuitted only in AG zone)
Restrictive Sails and Wetland Restoration
Protection and Preservation Permit
Right -of -Way Permits
Annual Registration (1415.05 Subd.1)
Excavation (1415.11 Subd. 1)
Each Additional Excavation
Trench Fee (boring or open cut)
Overhead Installation Fee
New Subdivisions (Alternate to per foot fee)
Street Obstruction Fee (1415,11 (Sub 2.)
Permit Extension
Delay Penalty
Sewage Disposal
On -Site Septic Systems
New
Alterations or Repairs
Sewer Availability Charge (SAC) (Metro System
Sewer
Wetland Treatment
Hookup to Existing System
Alteration/Repair
201 Off -Site Maintenance Fee
Signs (not requiring CUP)
Site Phut Review (Chapter 520)
$12-5.00
$50.00
Minimum $150.00 or 1% of total job cost
$100.00
2500.00 Escrow
.50 surcharge
.50 surcharge
Plus bond with amount to be determined by City
w/recommendation from Building OfTicial
Per Statute
.50 surcharge
.50 surcharge
Plus 2% Administrative Pee
Development Agreement
.50 surcharge
.50 surcharge
.50 surcharge
.50 surcharge
$750.00 1500,00 escrow
$50.00
$200.00
$30.00
.50 per foot
.50 per foot
50.00 per lot per utility
$50.00
$50.00
10.00 per day
$100.00
$100.00
$4,500.00
sz.so per 1,000 gallons
$75.00
$50.00
50.00 per unit per quarter
$100,00
$925.00
.50 surcharge
.50 surcharge
1450.00 Met. Council; 3050.00 to City
.50 surcharge
.50 surcharge
Appendix A
Development, Service,
Building, Etc.
Street Cleaning Erosion Control
Escrow
Re -inspection
Processing Fee
Surface Water
Residential
Non -Residential (commercial, ag., etc.)
Telecommunications Tower
Tennis Courts
Vacations (Streets or Easements)
Easements
Streets
Variance
Video Reproduction
Water
Residential — Quarterly Rate
Commercial
All Connection Permits
Meters, MIU & Meter Installation Sets
Fite Sprinkler System (Inspection Fee)
Delinquent Accounts
Disconnect Service
Reconnect Service
Water Storage Violation
Bulk Water from Hydrant
Swimming Pool Fill
Water Availability Charge (WAC)
Existing Structures within Old Village
New Development
Zoning Amendment ( Text or Map)
Fee Escrow or Additional Charge
$30.00 per hour
$25.00
Per Code
$825.00
Per 1997 UBC
$1.00.00
$500.00
$700.00
$25.00
$22,00 Base plus 1.75 per 1,000 gallons
$22.00 Base plus 2.60 per 1000 gallons
$125.00
$275.00
$50.00
6°,4 per quarter
$75.00
$75.00
$10.00 per day
$50.00 for first 5,000 gallons
$2.60 per 1,000 gallons over 5,000 gallons
$40.00 + $50.00 for first 5,000 gallons
$2.50 per 1,000 gallons over 5,000 gallons
$800,00
$3,500.00
$1,150.00
1,000.00 Escrow
Portal to Portal from City Hall. Minimum: 1
hour
10% of Contractor's Invoice to City
2,000.00 Escrow
Plus surcharge
$500.00 Escrow
$500,00 Escrow
Plus 25.00 or S%, whichever is greater, If certl(Ied to
County for collection with taxes
CITY OF LAKE ELMO
WASHINGTON COUNTY, MINNESOTA
ORDINANCE SUMMARY
ORDINANCE NO. 97-156
On the 3rd day of May , 2005, the Lake Elmo City Council adopted
Ordinance No. 97-145 relating to establishing municipal fees for calendar year 2005 and
authorized the publication of the following Ordinance Summary by four (4) affirmative
votes, as required by Minnesota Statutes §412.91, Subd. 4.
Ordinance No. 97-156 is attached to the Lake Elmo Municipal Code as amended
Appendix A and contains a listing of all fees charged by the City for various zoning,
platting, building, licensing and utility uses and permits.
A copy of the Ordinance is available for inspection by any person during regular
business hours at the office of the City Administrator at 3800 Laverne Avenue North,
Lake Elmo, MN 55042
Martin Rafferty
Its: City Administrator
Lake Elmo
City Council
05-03-2005
Section: Finance No . 5C
Ida item: Water Project Notification
Background information for May 03, 2005: The City is currently going through the first phase of the water
expansion and shortly will consider continuing with its plans for the second phase. As part of the Water System
Interconnect project, we will be installing watermains by existing homes. The staff would like afford existing
residents the opportunity to corniced into City Water on a volunteer basis. The proposed connection fee for WAC is
S3500.00 and the Lateral fee at S 30,00 per front foot, Property with large and/or corner lots will be looked at on a
"case by case" basis.
Due to the significant cost of the installation. the City would also propose allowing residents an option to have there
connection fees placed on there tax statements as an assessment. This one time assessment option will be offered
until August 31, 2005.
One may wish to note the many advantages to connecting to Municipal Water system at this time. 1) Favorable
existing fees (City anticipates higher \VAC Sz, Lateral with rising construction costs) 2) One time Assessment option
3) Connection to Municipal water (Not subject to loss of water due to power outages or costly maintenance/repairs).
Attached please find a project notification letter and a Volunteer Assessment Worksheet. Staff recommends offer MI,
the assessment financing at 4.25`,., interest over a ten year period. (Option D). This option only applies for phase 1 &
II of the 2005 water expansion program.
Action Items: Approval of the Property Assessment Option, Person responsible:
Approval of the Project Notification Letter Tom Bouthilet
Attachments:
1. Project Notification Letter
2. Volunteer Assessment Work -sheet
TKDA
ENGINEERS -ARCHITECTS - PLANNERS
April 29, 2005
Project Residents
City of Lake Elmo, Minnesota
Re: Project Notification
Water System Interconnect Proj ect
City of Lake Elmo, Minnesota
TKDA Project No, 13186.000.003
Dear Resident:
DRAFT
1500 Piper Jaftray Plaza
444 Cedar Street
Saint Paul, MN 55101-2140
(651) 292-4400
(651) 292-0083 Fax
www.tkda.com
The City of Lake Elmo will be installing watennain past your house this summer as part of a project to
interconnect the water systems in the Old Village and around the closed landfill. The project will consist
of directionally drilling 16-inch wateiniain, installing fire hydrants, and residential services. On Lake Jane
Trail/45th Street, the watermain will be under the south shoulder of the street. On 43rd Street, the
watermain will be in the north ditch.
The City Council has decided that you will not be required to connect to the water system, or pay for this
project. However, you have the opportunity, both now and in the future, to connect your home to the
water system. If you would like to connect in 2005, the following rates will apply:
Connection Charge (This pays for the wells, water towers, and other capitol costs) - $3,500
Lateral Charge (This pays for the pipe in front of your property) - $30.00 per front foot. Property owners
of large lots and corner lots will have the Lateral Charge looked at individually.
You would also be responsible for the cost of extending the service from the road to your house, and any
plumbing work inside your home.
Because installing City water is a significant cost, the City would allow you to have these costs placed on
your tax bill as an assessment. The proposed terms will be 10 years, at an interest rate of 4.25%.
Please contract Carole Freeman in the City office at (651) 777-5510 before June 1st if you would like
additional infoiniation.
Sincerely;
Thomas Prew, P.E.
City Engineer
An Employee Owned Company Promoting Affirmative Action and Equal Oppon'unily
City of Lake Elmo
Volunteer Water Assessment Worksheet
Option A Option B Option C Option D Option E Option F
Loan Amount $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00
Annual Interest Rate 4.25% 5.25% 5.75% 4.25% 5.25% 5.75%
Loan Period in Years 5 5 5 10 10 10
Annual Payments $1,470.35 $1,511.73 $1,532.60 $811.40 $852.03 $872.71
Monthly Payments $122.53 $125.98 $127.72 $67.62 $71.00 $72.73
Loan Amount $7,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00
Annual Interest Rate 4.25% 5.25% 5.75% 4.25% 5.25% 5.75%
Loan Period in Years 5 5 5 10 10 10
Annual Payments $1,583.45 $1,628.01 $1,650.49 $873.81 $917.57 $939.84
Monthly Payments $131.95 $135.67 $137.54 $72.82 $76.46 $78.32
Loan Amount $7,500.00 $7,500.00 $7,500.00 $7,500.00 $7,500.00 $7,500.00
Annual Interest Rate 4.25% 5.25% 5.75% 4.25% 5.25% 5.75%
Loan Period in Years 5 5 5 10 10 10
Annual Payments $1,696.55 $1,741.30 $1,768.38 $936.23 $983.11 $1,006.97
Monthly Payments $141.38 $145.36 $147.37 $78.02 $81.93 $83.91
Mayor
Dean Johnston
No. 6. A .
Councilmembers
Steve DeLapp
Liz Johnson
Anne Smith
Rita Conlin
Agenda Section: Organizational
Agenda Item: Community improvement Commission Appointments
Date: May 3, 2005
Background Information for May 3, 2005
Commissioner Deborah Lyzenua has resigned from the Community Improvement Commission in order to devote
her time as Planning Commissioner. The Community Improvement Commission now has one vacancy. Robert
Van Zandt has submitted an application for appointment.
Motion Second
Lake Elmo Community improvement Commission.
Attachment: Resignation Letter - Lvzenga
:Application — Van Zandt
, to appoint Robert Van Zandt as a member of the
Kimberly Schaffel
From: Deborah L, Lyzenga [deblyz@juna,com]
Sent: Thursday, April 21, 2005 4:32 PM
To: Kimberly Schaffel
Subject: Re: CIC
Mayor and Council members,
I am currently a member of both the
Planning Commission and the Community Improvement Commission'. I have been waiting to
resign from the CIC until a replacement could be found to fill my position. I have been
informed that a new application has been received for the CIC, Therefore I am resigning,
effective today, Thursday, April 21, 2005 from the Community Improvement Commission, so
that this application may be'considered.
Thank you for the opportunity to become a member of this commission.
Sincerely, Deborah Lyzenga
IfirwLAKE City of Lake Elmo
EL M 0 3800 Laverne Avenue North
Lake Elmo, Minnesota 55042
(651) 777-5510 / Fax 777-9615
RECEIVED
APR I 2005
APPLICATION FOR COMMUNITY IMPROVEMENT COMMISSION APPOINTMENT
Date; q
Name
Address
(0)
Phone: VV) 4,1 Z- 05-4/4 C9 1-1)-2-2,c(-97Cr( C) /0( 2- — ,c7) i5V91
1. What do you consider to be the major societal d law enforcement issues requiring
improvement in the City of Lake Elmo? 6 peL, 104-04 CC TV )04) re -a —
`pi -a /Awl u-e- AA•kruelt... O 64,-2 a4V14 4 ir1-7:c 6(.1t� T11- e'd Lk. C EskiPAilo
nice 1," 44, 60,1.05 /i 7).f.c .4“.Jor i;-)cr‘e C.6 r-.44 P1 fitar 121-4
14-e 4- a at plc. p r.% 104,014A-40 oc c.-C.1 4 k..4,6 nu -pc
por‘Ain 4 L aP, Peg 1,0 u-c-r ;De, ru-E 6)(.4.41_,VAT LiFE. ac."2/240.-ri-e ca. t..$L 1-'77i-c. azs ice.-) TT .
2. What do you see as the role and function of the Community Improvement Commission? --
6r ft, no-c OtA/04.14-- (2,4s,pc_LIT:s 17-1;S. /244 /4-71 a-) ru (>-?
evi-Lattl • 11-674-0771 pi.4 rAtC 464- 5'cs 7)-re /i r/2-.4 S'772‘,.o.i 171*.47 tu 4, b.- A..fg•efar 14,2cAe-ic
'17-9aS4i7'0 Ai-) IPC#1014-J 11-49 A #0,0 aa Cgs er-p e_ye) popcz 71,1 1,0142,, pokt F
5c6rr° oi , 141-rAeLe 0412.0-4-14 L 4-40.).0 a40124411 aw f4ce.x.
3. What experience and qualifications do you have that you feel will contribute to the Community
Improvement Commission's work, and will enable you to provide a service in this regard? kh4-iE .S'Eau44
f6 et4,4-tavhAO c-* f4i,eiou.k 11,44 1151 oc.4 kip "0.4-4 r Th2e4. y_ma
toe 14-Ale
ono 6- A 04- 1rup r.) Pe Otr- c-A- ahc. LiAe Poi - (14"4 /2-r-f 4'.4 4-4) Au./
t-u Nte 4-) / /WA It+ 6ort, 14--0 0.o g 0,40 s. SP4n..) (24:41.4c.:0 c ii.)Cel..‘ ALL Adej
110c&rnif....i+04114$ 6 (1.0,1 At-oi nre 4 0-6".veG-ev) a,>4411AL, 0,4 47 • 4-•" .4-1"-C a Ai nf-C/h04.,
4. How much time do you have, or are you willing to devote to Community Improvement
Commission activities? tik. aopty,#4,1 e, 4,2,A $,5_( 0,11.44, 12.c. 144 aeX e orx 614.-c-f.1 61"4"4' #(-)0•44-1L- 144 104,211 icir3Lor-i
'r4714/1644--t'4)1c..4:,:
44-Loc., 4$.
5. What property or development interest, either direct or indirect, do you have within Lake Elmo?
01•-ei )11 14-4 Ai- VI 1-1--ofre-S 11,/r>
Please, complete and return to City Hall.
VAN ZANDT DISTRIBUTING, INC.
Monday, April 18, 2005
Dear Dean:
Please find my application for the Community Improvement Commission
enclosed. hope everyone can read my handwriting. Call me at the office or
home if you have any questions.
1113 East Franklin Avenue • Suite #208 • Minneapolis, Minnesota 55404
612-879-8160 • Fax 612-879-8078
Mayor
No. 6. B .
Dean ,Johnston
Agenda Section: Organizational
Councilmembers
Steve DeLapp Agenda Item: Parks Commission Appointments
Liz Johnson
Anne Smith Date: May 3, 2005
Rita Conlin
Background Information for May 3, 2005
After many months of advertising, the Parks Commission still has a vacancy. An application has been received
from Judith Blackford, Appointing Ms. Blackford as 2" Alternate will bring the Parks Commission to its full
complement of seven full voting members and two alternate members.
Motion , Second
Lake Elmo Parks Commission.
Attachment: Application
, to appoint Judith Blackford as 2nd Alternate to the
4. How
ir
LAKE
AlikELMO
Name:
Address:
Telephone: (H) -7
1. What do you consider to be the major park planning development and policy issues
confronting the City of Lake Elmo? What is your position on these matters?
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CITY OF LAKE ELMO
3800 Laverne Ave. N.
Lake Elmo, MN 55042
Voice: (651) 777-5510
0. Fax: (651) 777-9615
LAKE ELMO PARKS COMMISSION
APPLICATION FOR APPOINTMENT
2. What do you see as the role and function of the Parks Commission?
to the role and responsibility of the City Council in Park matters?
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hat perience and qualificationqualifieationOdo yoi4ave which you feel will contribute to the
Parks Commission work, and which will Mab1e you to provide a service in this regar
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do you have or are willing to devog to Parks Commission activities?
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Mayor
Dean Johnston
Councilmembers
Steve DeLapp
Liz Johnson
Anne Smith
Rita Conlin
No. 6. C.
Agenda Section: Organizational
Agenda Hein: Planning Commission Appointments
Date: May 3, 2005
Background Information for May 3, 2005
Planning Commissioner Rodney Sessing's second full term expired on December 31, 2004, and the Citv
Council reappointed him on January 4, 2005 for sixty days, The Council then reappointed him again on
February 15. 2005 for sixty days. If both reappointments are considered together, then Rod Sessing's
commission will expire on May 4, 2005.
Should the Council decide not to reappoint Rod Sessing, there will be a vacancy on the Planning
Commission. With three applications on file and Mr. Sessing's formal request for reappointment, the
Council can interview the four applicants, In the alternative, the Council can direct staff to advertise for
additional applications.
Staff is seeking Council direction.
Lake .Elmo
City Council
May 3, 2005
mica Section: NEW BUSINESS
Agenda Item: Adopting the MN General Records Retention Schedule for Cities
Background information for May 3, 2005:
In May 2002. the Finance Director started the process of adopting a plan for mana2inL, governmental
records and contracted RCI Technologies out of Texas to evaluate the proper retention and disposal of
unicipal records. At that time a resolution adopting the MN General Records Retention Schedule for
Cities was not brought to the City Council for approval.
Consequently, I am requesting Council approval of Resolution No.2005-045 adopting e State of
Minnesota Records Retention Schedule which can be reviewed at City Hall.
Action items: to adopt Resolution No. 2005-045, A Resolution Person responsible:
I Adopting the Minnesota General Records Retention Schedule S.Lumby
for Cities.
Attachments:
Resolution No. 2005-045
CITY OF LAKE ELMO
WASHING -TON COUNTY, MINNESOTA
RESOLUTION NO. 2005-045
A RESOLUTION ADOPTING THE MINNESOTA GENERAL RECORDS
RETENTION SCHEDULE FOR CITIES
CITY OF LAKE ELMO
WHEREAS, to comply with the Records Management Statute MS 138,17, it is
necessary to adopt a plan for managing governmental records including the proper
retention and disposal of municipal records; and
WHEREAS, the Records Management Statute MS 138.17 establishes the Records
Disposition Panel and requires all governmental entities to follow an orderly process in
disposing of government information; and
WHEREAS, the State of Minnesota has approved for use by all Minnesota Cities
the "Minnesota General Records Retention Schedule for Cities" which authorizes cities
adopting said schedule an orderly method of disposing of municipal records; and
WHEREAS, the "Minnesota General Records Retention Schedule for Cities" is
regularly updated.
NOW, THERE BE IT RESOLVED, by the City Council of the City of Lake
Elmo, Minnesota adopts the Minnesota General Records Retention schedule and directs
the City Clerk to notify the Minnesota Historical Society/State Archives Department.
BE IT FURTHER RESOLVED that following state approval, City Departments
are directed to provide for retention and destruction of records as set forth in said
schedule and its subsequent revisions.
NOW, THEREFORE, BE IT RESOLVED that the Minnesota General Records
Retention Schedule for the Cities, City of Lake Elmo, is hereby approved by the City of
Lake Elmo,
ADOPTED BY THE COUNCIL this 3rd day of May, 2005,
Dean A, Johnston, Mayor
AI 1EST:
Martin J. Rafferty, City Administrator
Lake Elmo
City Council
May 3, 2005
Agenda Section: CITY ENGINEERS REPORT No 813.
Agenda Item: Authorization for Professional Services for 2005 Street Repairs — Hilltop Avenue South
Background Information for May 3. 2005:
In accordance with the adopted 2005-2009 CIP, Hilltop Avenue North is scheduled to he overlayed in 2005.
The City Engineer is asking approval for Authorization for Professional Services for 2005 Street Repairs —
Hilltop Avenue North.
Action Items:
To appove the City Engineer's request for .Authorization for
Professional Services for the 2005 Street Repairs — Hilltop
Avenue North not to exceed an estimated amount of S35.500.
Attachments:
Authorization for Professional Services
Person responsible:
Tom Prew
CITY OF LAKE ELMO, MINNESOTA
AUTHORIZATION FOR PROFESSIONAL SERVICES
TO: Toltz, King, Duvall, Anderson
and Associates, Incorporated
1500 Piper Jaffray Plaza
444 Cedar Street
St. Paul, Minnesota 55101
Pursuant to our Agreement dated February 2, 1988, you are hereby authorized to proceed with
the professional services described as follows:
2005 STREET REPAIRS
HILLTOP AVENUE NORTH
PROJECT DESCRIPTION
In accordance with the Adopted 2005-2009 CIP, the following street is scheduled to be overlaid
in 2005:
Hilltop Avenue North
II. SERVICES TO BE PROVIDED BY TKDA
Based on TKDA'S understanding of the Project, we propose to provide the following services:
A. PLANS
1 Feasibility Report Phase
Upon receipt of authorization to proceed with the Feasibility Report Phase,
TKDA shall:
a. Consult with the OWNER to clarify and define the OWNER'S
requirements for the Project and review available data.
Advise the OWNER as to the necessity of the OWNER'S providing or
obtaining from others, data or services of the type(s) described under the
General Agreement and act as the OWNER'S representative in connection
with any such services.
c. Identify and analyze requirements of governmental authorities having
jurisdiction to approve the design of the Project and participate in
consultations with such authorities,
d. Conduct professional studies and evaluations resulting in the preparation
of a Feasibility Report containing one preliminary design, opinion of
probable construction costs, preliminary assessment roll, Statement of
Feasibility, and Project schedule, in accordance with the provisions of
Minnesota Rules 429.
e. Furnish 10 copies of the Feasibility Report, and review them with the
OWNER.
Attend Public Informational meeting.
Attend Public Hearing.
g.
2. Final Design Phase
On the basis of the approved Feasibility Report, TKDA shall:
a. Advise the OWNER as to the necessity of the OWNER'S providing or
obtaining from others, additional data or services of the type(s) described
under the General Agreement, and act as the OWNER'S representative in
connection with any such services,
b. Prepare for incorporation in the Contract Documents final Drawings and
Specifications setting forth in detail the requirements for the construction
of the Project.
c. Assist the OWNER in connection with the OWNER'S responsibility for
filing documents required for the approval of governmental authorities
having jurisdiction over the Project.
d. Advise the OWNER of any adjustments to the latest opinion of probable
construction cost caused by changes in extent or design requirements of
the Project and furnish a revised opinion of probable construction cost
based on the drawings and specifications.
e. Prepare for review and approval by the OWNER, his legal counsel and
other advisors Contract Agreement Forms, general conditions,
supplementary conditions, bid foiiiis, invitations to bid and instructions to
bidders, and assist in the preparation of other related documents.
2-
Submit copies of the above documents and of the Drawings and
Specifications to the OWNER. Make minor revisions and adjustments
following the OWNER'S review.
B. CONSTRUCTION ADMINISTRATION
1 Bidding Phase
During the Bidding Phase, TKDA shall:
a. Reproduce final Contract Documents and related Contract Forms for
bidding and construction purposes.
b. Assist the OWNER in obtaining bids for one prime contract.
c. Prepare bid tabulation.
d. Assist the OWNER in evaluating bids and in assembling and awarding the
contract.
2. Construction Phase - General Services
During the Construction Phase, TKDA shall provide the following general
services:
Consult with and advise the OWNER and act as the OWNER'S
representative as provided in the Contract Documents.
b. Attend and assist the OWNER with pre -construction conference to be
attended by the Contractor, the OWNER and others as may be requested
by the OWNER.
c. Provide reference points, on a one-time basis, for the Contractor's use in
laying out the work, said reference points to be based upon property,
boundary, easement, or right-of-way surveys provided by the OWNER
pursuant to the General Agreement.
d. Make visits to the site at intervals appropriate to the various stages of
construction to observe as an experienced and qualified design
professional, the progress and quality of the executed work of the
Contractor and to determine in general if such work is proceeding in
accordance with the Contract Documents.
e. Review and approve (or take other appropriate action with respect to)
Shop Drawings (as that term is defined in the Contract Documents),
samples, and other data which the Contractor is required to submit, but
g.
only for conformance with the design concept of the Project and
compliance with the information given in the Contract Documents. Such
reviews and approvals or other action shall not extend to means, methods,
techniques, sequences or procedures of construction or to safety
precautions and programs incident thereto.
Issue all instructions of the OWNER to the Contractor; issue necessary
interpretations and clarifications of the Contract Documents and in
connection therewith, prepare change orders as required; have authority,
as the OWNER'S representative, to require special inspection or testing of
the work.
Based on TKDA'S periodic on -site observations as an experienced and
qualified design professional, determine payments to the Contractor in
such amounts; such recommendations of payment will constitute a
representation to the OWNER, based on such observations and review,
that the work has progressed to the point indicated, that, to the best of
TKDA'S knowledge, information and belief, the quality of such work is in
accordance with the Contract Documents.
h. Conduct an inspection to determine if the Project is substantially complete
and a final inspection to determine if the work appears to have been
completed in accordance with the Contract Documents and if the
Contractor has fulfilled all of his obligations thereunder, so that TKDA
may recommend, in writing, final payment to the Contractor and may give
written notice to the OWNER and the Contractor that the work is
acceptable (subject to any conditions therein expressed).
TKDA shall not have control or charge of and shall not be responsible for
construction means, methods, techniques, sequences or procedures, or for
safety precautions and programs in connection with the Work, for acts or
omissions of the Contractor, Subcontractors or any other persons
performing any of the Work, or for the failure of any of them to carry out
the Work in accordance with the Contract Documents.
Prepare Assessment Role and attend Assessment Hearing.
Construction Phase - Resident Services
In addition to the above General Services, TKDA shall provide the services of a
Resident Project Representative (and assistants as agreed) at the site to assist
TKDA and to provide more continuous observation of the Contractor(s) work.
The Resident Project Representative (and any assistants) will be TKDA'S agent
or employee and under TKDA'S supervision. Resident Project Representative's
dealings in matters pertaining to the on -site work shall in general, be only with
TKDA and the Contractor, and dealings with subcontractors shall only be through
or with full knowledge of the Contractor. Written communication with the
OWNER will be only through or as directed by TKDA. Through the observations
of the work in progress and field checks of materials and equipment by the
Resident Project Representative, TKDA shall endeavor to provide further
protection for the OWNER against defects and deficiencies in the work of the
Contractor; but the furnishing of such resident Project representation will not
make TKDA responsible for construction means, methods, techniques, sequences
or procedures or for safety precautions or programs, or for the Contractor's failure
to perform his work in accordance with the Contract Documents.
III, ADDITIONAL SERVICES
If authorized in writing by the OWNER, TKDA shall furnish or obtain from others Additional
Services of the types listed below which are not considered as normal or customary services.
Additional Services shall be compensated for on an Hourly Rate basis as defined in the General
Agreement, a part hereof, and such compensation shall be over and above any maximums or
lump sum amounts set forth in this Authorization.
A. Registered land or right-of-way surveys, right-of-way mapping; plats; legal descriptions;
land appraisals, negotiations and/or related services,
B. Investigations of existing conditions or facilities or to make measured Drawings thereof,
or to verify the accuracy of Drawings or other information fumished by the OWNER.
C. Soil borings and laboratory tests for design purposes; field and/or laboratory tests taken
during construction to determine compliance with the Contract Documents.
D. Providing analyses of the OWNER'S needs and programming the requirements of the
Project; investigations involving detailed consideration of operations, maintenance and
overhead expenses; providing Value Engineering during the course of design; the
preparation of cash flow and economic evaluations, rate schedules and appraisals;
assistance in obtaining financing for the Project; detailed quantity surveys of material,
equipment and labor.
E. Preparation of applications and supporting documents for governmental grants, loans or
advances in connection with the Project; preparation or review of environmental
assessments and impact statements; review and evaluation of the effect on the design
requirements of the Project of any such statements and documents prepared by others;
and assistance in obtaining approvals of authorities having jurisdiction over the
anticipated environmental impact of the Project.
F. Services resulting from significant changes in extent of the Project or its design
including, but not limited to, changes in size, complexity, the OWNER'S schedule, or
character of construction or methods of financing; and revising previously accepted
5
studies, reports, design documents or Contract Documents when such revisions are due to
causes beyond TKDA'S control.
G. Furnishing the services of special consultants for other than the normal civil, structural,
mechanical, and electrical engineering and normal architectural design incidental thereto;
providing renderings or models for the OWNER'S use; and providing data or services of
the types described in General Agreement when the OWNER authorizes TKDA to
provide such data or services in lieu of furnishing the same in accordance with the
General Agreement.
Services in connection with change orders provided such change orders are required by
causes not solely within the control of TKDA; services after the award of each contract in
evaluating substitutions proposed by the Contractor(s); and in making revisions to
Drawings and Specifications occasioned thereby, and services resulting from significant
delays, changes or price increases occurring as a direct or indirect result of material,
equipment or energy shortages.
Preparing for the OWNER, on request, a set of reproducible record prints of Drawings
showing those changes made during the construction process, based on the marked -up
prints, drawings and other data fumished by the Contractor(s) to TKDA and which
TKDA considers significant.
Additional or extended services during construction made necessary by:
1 Contractor's schedule; delays in construction caused by inclement weather, strikes
or material shortages or unavailability.
2. Significant amount of defective or neglected work of the Contractor; default by
the Contractor.
Work damaged by fire or other causes during construction.
4. Significant substitutes proposed by the Contractor; unreasonable number of
claims submitted by the Contractor or others.
5. Observations during any guarantee period, and related services.
K. Preparation of operating and maintenance manuals; protracted or extensive assistance in
the utilization of any equipment or system (such as initial start-up, testing, adjusting and
balancing); and training personnel for operation and maintenance.
L Preparing to serve or serving as expert witness in connection with any legal or arbitration
proceeding.
6
Additional services in connection with the Project, including services not normally
furnished by the OWNER and services not otherwise provided for in this Authorization
and the General Agreement, a part hereof.
OWNER'S RESPONSIBIT .ITIES
The OWNER'S responsibilities shall be as set forth in our General Agreement and as further
described or clarified hereinbelow:
A. Designate one individual to act as the OWNER'S representative with respect to the work
to be performed, and such person shall have complete authority to transmit instructions,
receive information, interpret and define policies, and make decisions with respect to
critical elements pertinent to the Project.
B. Provide TKDA with access to the site as required to perform services listed in
SECTION II above.
V. PERIOD OF SERVICE
TKDA will start services promptly upon receipt of this executed Authorization and complete
services by November 2005.
VI. COMPENSATION
Compensation to TKDA for services provided under SECTION II of this Authorization shall be
on an Hourly Rate basis as defined in the General Agreement.
If it appears at any time that charges for services rendered under SECTION II will exceed an
estimated amount of $35,500, TKDA agrees that it will not perform services or incur costs which
result in billing in excess of such amount until it has been advised by the OWNER that additional
funds are available and its services can continue.
Approved at a meeting of the on , 2005.
By Attest
Consultant Acceptance by
Authorized TKDA Representative
, 2005.
7
Lake Elmo
City Council
May 5, 2005
Agenda Section: CITY ENGINEER'S REPORT No 8A.
Agenda Item: Escrow Reduction - Tapestry
Background Information for . av 5, 2005:
In his memorandum dated April 29, 2005, the City Engineer reports that a small amount of grading and water
main work is complete. He is requesting an escrow reduction of amounts listed in his memo.
Action Items:
To approve the escrow reduction for Tapestry as recommended in
the City Engineer's memorandum dated April 29, 2005.
Attachments:
City Engineer's Nilemorandum dated April 29. 2005
Person responsible:
Tom Prew
TKDA
ENGINEERS. ARCHITEC1S •PLANNERS
MEMORANDUM
To: Chuck Dillerud
Copies To: St. Croix Farms LLC
From: Thomas D. Prew, P.E.
Date: April 29, 2005
Project No,
Routing:
1500 Piper Jaffrey Plaza
444 Cedar Street
Saint Paul, MN 55101-2140
(651) 292-4400
(651) 292-0083 Fax
www.tkda.com
Reference: Escrow Reduction
Tapestry
City of Lake Elmo, Minnesota
13267.000
Work on Tapestry has started. A small amount of grading and watermain work is complete.
I would recommend that escrow be reduced to the amounts listed below:
Item
Site Grading/ Turf Establishment
Storm Sewer
Sanitary Sewer and Drainfield
Watermain
Streets
Street Signs
Landscaping
Subtotal
125% Security
Original Amount
$10,000,00
$10,000.00
$767,900.00
489,300.00
S645,530.00
$1,000.00
$100,500.00
$2,024,230.00
$2,530,287.50
Work Remaining
$10,000.00
$10,000.00
$767,900.00
$394,600.00
$645,530.00
$1,000.00
$100,500.00
$1,929,530.00
$2,411,912.50
An Employee Owned Company Promoting Affirmative Action and Equal Opportunity