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051093 CC Reg AgP .. .. CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, HAY 10, 1993 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:00 P.M. Following the adjournment of the reqular meeting the City council will convene to a Work Session Format AGENDA 1. CONVENE CITY COUNCIL MEETING A. Pledge of Allegiance B. Roll Call Mayor Brancel Benson stover Daugherty Lewis C. Review Agenda 2. APPROVAL OF MINUTES A. City council Regular Meeting Minutes - April 26, 1993 (Att.NO.2A-Minutes) B. City Council Work session Minutes - April 26, 1993 (Att.NO.2B-Minutes) 3 . CONSENT AGENDA - Motion to Aoorove Items on Consent Aaenda and Adoot Resolutions Therein A. A Motion to Adopt a Resolution Approving Intoxicating Liquor License Sunday and Club - American Legion Post #259, 24450 Smithtown Road (Att.No.3A-proposed Resolution) B. A Motion to Adopt a Resolution Approving Intoxicating Liquor License on Sale of Intoxicating Liquor and special Sunday Sales - Minnetonka Country Club, 24575 smithtown Road (Att.No.3B-proposed Resolution) C. A Motion to Adopt a Resolution Approving Non-Intoxicating Malt Liquor License - Vine Hill Market, 19215 State Highway 7 (Att.No.3c-proposed Resolution) 4. PARK A. Report on Park Commision Meetings - May 3 & 4, 1993 5. PLANNING A. Report on Planning commission Meeting - May 4, 1993 6. CONSIDER A REOUEST CONNECTION HOOK-UP Beverly Drive FOR ASSISTANCE REGARDING CITY - John and Shannon Steinhibel. WATER 27075 (Att.No.6-Resident's Letter) .. CITY COUNCIL AGENDA - MONDAY MAY 10, 1993 PAGE TWO 7. 1992 ANNUAL AUDIT REPORT - ABDO. ABDO AND EICK 8. REPORT ON REQUEST OF THE CITY OF CHANHASSEN REGARDING DEER RIDGE SUBDIVISION (Att.No.8-staff Report) 9.** CONSIDER AN ORDINANCE ESTABLISHING A LOW INCOME DISCOUNT FOR WATER UTILITY (Att.No.9-proposed Ordinance) 10.**CONSIDER AN ORDINANCE ON SPECIAL ASSESSMENTS FOR STREET RECONSTRUCTION PROJECTS (Att.No.10-proposed Ordinance) 11. MATTERS FROM THE FLOOR 12. STAFF REPORTS A. city Attorney B. City Engineer C. city Planner D. Finance Director E. city Administrator 13. COUNCIL REPORTS A. Mayor Brancel B. Councilmembers 14. ADJOURN TO WORK SESSION SUBJECT TO THE APPROVAL OF CLAIMS (Attachment) WORK SESSION 1. CONVENE WORK SESSION - No Action will be Taken at this Work Session A. Discuss Badger/Woodhaven Wells B. Review 1993-1997 Capital Improvement Plan (Att.NO.1B-Administrator's Memo) 2. ADJOURN WORK SESSION ** indicates tax or fee implications JCH.al 4/30/93 CITY OF SHOREWOOD 4 COUNCIL MEETING WORK SESSION AGENDA (NO action will be taken at this Work session) May 10, 1993 A. BADGER/WOODBAVEN WELLS 1. Badger Well a) Financial Analysis b) Tonka Bay, Excelsior options c) Related issues 2. Woodhaven Well a) Financial Analysis b) Excelsior, Chanhassen options c) Related issues B. REVIEW 1993 - 1997 CAPITAL IMPROVEMENT PROGRAM - OPTIONS FOR PARK FUNDING 1. Review Capital Finance Plan (ClP pg 28) 2. Review Fund Balances Capital Reserve (pg 29) Park Fund (pg 30) Equipment Replacement (pg 30) street Reconstruction ,(pg 31) MSA (pg 31) storm Drainage (pg 32) 3. Report on Other Funding Options MONDAY, MAY 10, 1993 II EXECUTIVE SUMMARY SHOREWOOD CITY COUNCIL MEETING AGENDA AGENDA ITEM 3A - AGENDA ITEM 3B - AGENDA ITEM 3C - These are annual license resolutions approving the appropriate liquor licenses for the American Legion Post #259, Minnetonka Country Club and the Vine Hill Market. ., AGENDA ITEM 8 - City Manager Don Ashworth will explain the details of this alternative proposal. As a courtesy we would like to move this item first on the agenda so that Mr. Ashworth can attend his City Council meeting of the same evening. His memorandum identifies the parcel land where the house is cut in half by the municipal boundary. Gerald and Lynn Cox, 6200 Cardinal, vote in Chanhassen and are covered by Chanhassen Public safety. UNDER SEPARATE COVER - Planner Nielsen's Report I I . t I AGENDA ITEM 6 - John and Shannon steinhibel, 27075 Beverly Drive are requesting that the City spread their water hook up fee of $4,000 as a special assessment. The Council has allowed this to happen in the past and may want to consider again in this case. AGENDA ITEM 7 - Gary Groen, Adbo, Abdo and Eick will review briefly for the City Council the 1992 Audit Report. t I J AGENDA ITEM 9 Enclosed in the packet is an ordinance establishing a low income discount for water utility. Staff was directed to prepare this ordinance at the last Council meeting. AGENDA ITEM 10 - A draft of the ordinance establishing special assessment procedures for street reconstruction projects is enclosed in the packet. The city Council might like to consider the same type of process as was undertaken with the stormwater management utility. We could put an article in the June City newsletter, attempt to get an article or two in the Sun.Sailor newspaper and then have a public information meeting before adopting the ordinance. Please consider this a first reading. At this point Council will need to give direction as to how you want to proceed. Following the regular Council meeting will be the work session. A work session agenda is attached to the regular Council agenda. We will discuss the Badger /Woodhaven wells and briefly review the capital Improvement progam and update the Council on various account balances. The Council can then discus whether or not they would like to transfer any funds to the Park Improvement Fund. Please note that I have included a tentative schedule of City. Council Work Sessions so that you have an idea of the topics which we should be discussing in work session format for each of the meetings. We will keep this updated and included in the packets directly behind the Executive summary. CITY OF SHOREWOOD REGulAR CITY COUNCIL MEETING MONDAY, APRIL 26, 1993 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:00 p.rn. MINUTES 1. CONVENE CITY COUNCIL MEETING The meeting was called to order by Mayor Brancel at 7:00 p.m. A Pledge of Allegiance B. Roll Call . Present: Mayor Brancel; Councilmembers Benson, Daugherty, Lewis, and Stover; Administrator Hurm, Engineer Dresel, Attorney Keane, Planning Director Nielsen, and Financial Director Rolek. C. Review Agenda Daugherty moved, Lewis seconded to approve the Agenda for April 26, 1993, with the postponement of Consent Agenda Item 3.C. and removal of Agenda Item 7. Motion passed 5/0. 2. APPROVAL OF MINUTES . A. City Council Regular Meeting Minutes - April 12, 1993 Lewis moved, Daugherty seconded to approve the City Council Minutes of April 12, 1993. Motion passed 4/0. Stover abstained. B. City Council Work Session Minutes - April 12, 1993 Lewis moved, Daugherty seconded to approve the City Council Work Session Minutes of April 12, 1993. Motion passed 4/0. Stover abstained. 3. CONSENT AGENDA Mayor Brancel read the Consent 'Agenda for April 26, 1993. Stover moved, Lewis seconded to approve the Consent Agenda and to adopt the Resolutions contained therein: 1 ~A REGULAR CITY COUNCIL MINUIES APRIL 26, 1993 - PAGE 2 A RESOLUllON NO. 41-93 "A Resolution Approving Single Temporary Gambling license." B. RESOLUllON NO. 42-93 "A Resolution Denying A Setback Variance to Peter Knaeble and David Nelson." C. Postponed Motion passed 5/0. . 4. Inadvertently skipped in numbering of the Agenda. 5. PARK A. Report on Park Commission Meeting - April 13, 1993 . Steve Dzurak, Park Commission Chair, reviewed the Commission's recommendation that the Council amend the 1993-1997 Capital Improvement Budget to reflect a revised 5-year Park Improvement Plan. The park plan, updated due to the defeat of the Park Referendum in March 1993, includes $115,400 to be spent in 1993 for erecting buildings in Manor Park and in Freeman Park, for playground equipment in Badger and Freeman parks, and for basketball and tennis courts and landscaping in Silverwood Park. Dzurak noted that donations will be solicited from businesses and residents primarily for playground equipment. In addition, it is recommended that labor for some of the projects be supplied through the Twin Cities Tree Trust, a nonprofit corporation that hires disadvantaged people. Dzurak reviewed other park-related issues recently considered by the Commission and answered questions from the Councilmembers regarding the Tree Trust organization and . on details of the various plans for the Park system. B. Consider a Resolution amending the 1993-1997 Capital Improvement Program and 1993 Capital Improvement Budget Daugherty inquired whether it was feasible to accelerate park improvements that would have been funded through the Park Referendum by reviewing the CIP with a view to possibly deferring other planned projects in favor of park improvements. Hurm explained that the Park Commission is comfortable with the improvement schedule, optimistic that donations will provide playground equipment and that since new grass will be planted at Silverwood additional work there should be deferred until next year to give the grass time to take hold before children use it extensively. The Councilmembers discussed issues related to additional park improvements and agreed to accept the improvements and schedule presented by the Park Commission and agreed to review the 1993-1997 Capital Improvement Program within 4 weeks to determine whether additional funds may be re-allocated to accelerate the overall park improvement plan. 2 REGUlAR CITY COUNCIL MINUTES APRIL 26, 1993 - PAGE 3 Daugherty moved, Benson seconded to adopt RESOLUTION N0.43-93 "A Resolution Amending the 1993-1997 Capital Improvement Program and 1993 Capital Improvement Budget." Motion passed 5/0. C. Consider Use of Twin Cities Tree Trust Crews and Organizations Donations to Improve Parks Lewis moved, Stover seconded to approve the use of Twin Cities Tree Trust crews in connection with work related to the City's park improvements and to accept donations to improve the City's parks. . Motion passed 5/0. D. Consider Planned Activities for Arbor Month (May) 1993 Activities scheduled by the Park Commission in recognition of Arbor Month were outlined in the Commission's meeting minutes dated April 13, 1993. 6. PlANNING A Report on Planning Commission Meeting - April 20, 1993 Doug Malam, Planning Commissioner, reported that the Commission met in a Work Session on April 20, 1993. . B. Authorization to Proceed with Bid Process - City Hall Parking Lot Hurm recommended that the Council authorize proceeding with the bid process for the approved City Hall parking lot improvement project. The budget includes $75,000 for completion of this project. Hurm noted that the Public Works Department will perform selected portions of the work. Dresel presented and answered questions regarding the proposed budget for the project and described work which would be completed by the Public Works crew. He stated further information will be provided as the project progresses. Nielsen responded to questions regarding the design of the parking lot area. Daugherty stated the design should allocate more parking for Badger Park and indicated the project should be postponed to allow for more funding of park improvements. Stover moved, Benson seconded to authorize the staff to begin the bid process for the construction of the City Hall parking lot. Motion passed 4/1. Daugherty voted nay. 3 REGULAR CITY COUNCIL MINUTES APRa 26, 1993 - PAGE 4 7. REMOVED. 8. CONSIDER A RESOLUTION AUTHORIZING INTERGOVERNMENTAL DISCUSSIONS REIATING TO A SOUTH SHORE SENIOR CENTER AND DISCUSSION OF REIATED ISSUES Robert Gagne, Chair of the South Shore Senior Center Task Force, reviewed the process required to expeditiously proceed with plans for construction of a Senior Center in order to be eligible for Federal Economic Stimulus Program (CDBG) funds and requested that the City Administrator be authorized to begin discussions with the representatives of Deephaven, Excelsior, Greenwood and Tonka Bay and the Task Force to consider and develop a plan for a South Shore Senior Center building. Lewis moved, Stover seconded to adopt RESOLUTION NO.44-93 "A Resolution . Authorizing Intergovernmental Discussions Relating to a South Shore Senior Center." Motion passed 5/0. Mr. Gagne reported that current needs for the senior center site planning include $2,700 for soil borings and $1,200 for survey data. Hurm explained that preapproval will be requested from HUD so bids may be acquired, work completed and payment made from City funds with reimbursement to the City from the HUD funds. Stover moved, Daugherty seconded to authorize the use of Community Development Block Grant funds for Senior Center site planning. Motion passed 5/0. 9. CONSIDER JOINT COOPERATION AGREEMENT BETWEEN TIlE COUNTY OF HENNEPIN AND TIlE CITY . Brancel noted that the Council is requested to authorize a 3-year agreement extending from October 1, 1993 to October 1, 1996 to cooperate in the Community Development Block Grant program. Stover moved, Lewis seconded to adopt RESOLUTION NO. 45-93 "A Resolution Authorizing Participation in the Urban Hennepin County CDBG Program and Execution of the Joint Cooperation Agreement for Fiscal Years 1994, 1995 and 1996." Motion passed 5/0. 4 REGUlAR CITY COUNCIL MINUTES APRIL 26, 1993 - PAGE 5 10. CONSIDER AN ORDINANCE AMENDMENT ESTABUSIllNG A UCENSE FEE -RENTAL HOUSING Hurm recommended that the Council establish the rental housing license fee by amending Ordinance No. 263. The 3-year fee will be $35 which includes up to 3 inspections. The fee for additional inspections will be $20. Daugherty moved, Lewis seconded to adopt ORDINANCE N0273, "An Ordinance Amending Ordinance No. 263 Establishing a Rental Housing License Fee." Motion passed 5/0. . 11. MAnERS FROM THE FLOOR - None. 12. STAFF REPORTS A City Attorney - None. B. City Engineer - None. C. City Planner - None. D. Finance Director - None. E. City Administrator - None. 13. COUNCIL REPORTS A. Mayor Brancel . 1. Consider a Low Income Discount for Water Utility Brancel referred to Rolek's memorandum dated April 20, 1993 regarding a minimum water charge for low income residents including data on the number of accounts being charged the minimum, the average consumption for those charged the minimum, and comparable rates of other communities. Brancel recommended that the Council consider charging low income households and low income senior citizens who use less than the 10,000 gallon per quarter minimum the same 1/3 discounted rate currently offered to that segment on sewer charges. Low income would be defined in accordance with guidelines set for Section 8 very low income housing. The discount would be automatic for a qualified household if usage was less than the quarterly minimum gallons, but the normal rate would apply if that minimum is exceeded. The low income minimum charge for water would be $15.00 per quarter. Following discussion, the Council unanimously agreed to implement the low income minimum charge for water for qualified residents and directed the staff to prepare the appropriate amendment to the Ordinance for action at the next Council meeting. 5 REGULAR CITY COUNCIL MINUTES APRIL 26, 1993 - PAGE 6 2. Letter from David W. Lindsey Regarding the Reconfiguration of Six of the Forty Boat Slips at Boulder Bridge Farms Brancel referred to correspondence received from a resident of Boulder Bridge Farms requesting assistance in gaining approval by the Lake Minnetonka Conservation District of their request for reconfiguration of boat slips at Boulder Bridge Farms. Robert Rascop, Shorewood's LMCD representative, reviewed the history, the issues and the position of the LMCD relating to the Boulder Bridge request. During discussion, the Councilmembers acknowledged that while the City has no jurisdiction in this matter, they urged Rascop to encourage a compromise solution to the issue. Brancel moved, Lewis seconded to adopt RESOLUTION NO. 46-93 "A Resolution..." (to . direct Shorewood's LMCD representative to work for a compromise in resolving the issue regarding reconfiguration of Boulder Bridge Farms boat slips.) Motion passed 5/0. Brancel noted that the annual Clean-Up day has been scheduled for May 22. B. Councilmembers Lewis commented on continuing problems regarding the Metropolitan Waste Control Commission's sewer lines located in the eastern part of the City. Dresel and Keane briefly commented on the status of negotiations regarding the City's grievances against MWCC. Lewis described the problems encountered by a resident whose basement was recently flooded for the second time with raw sewage. Staff reviewed actions taken to identify the cause, to correct the problem, and to assist the resident in cleanup. . Following discussion, the Council directed the staff to prepare a maintenance plan designed to prevent such an occurrence including inspection and cleaning of the City's sewer lines and to develop an emergency response plan with procedures to follow by all concerned when such a disaster occurs. 14. ADJOURNMENT TO WORK SESSION SUBJECf TO APPROVAL OF CLAIMS Benson moved, Stover seconded to adjourn the City Council Meeting, subject to the approval of claims, at 8:55 p.m. to a Work Session. Motion passed 5/0. 6 . . REGUlAR CITY COUNCIL MINUTES AP~ 26, 1993 - PAGE 7 RESPECIFULL Y SUBMrl'l'~D, Arlene H. Bergfalk Recording Secretary TimeSaver Off Site Secretarial ArrEST: JAMES C. HURM, CITY ADMINISlRATOR BARBARA J. BRANCEL, MAYOR 7 CITY OF SHOREWOOD COUNCIL WORK. SESSION MONDAY, APRIL 26, 1993 COUNCIL CHAMBERS 5755 COUNIRY CLUB ROAD 9:05 P.M. MINUTES 1. CONVENE WORK. SESSION Mayor Brancel convened the work session at 9:05 p.m. Present were: Mayor Brance1; Councilmembers Benson, Daugherty, Lewis and Stover; Administrator Hurm, Engineer Dresel, Planning Director Nielsen, Attorney Keane, and Finance Director Rolek. Also present was Robert Bean, Planning Commissioner and member of the Street Reconstruction Financing Task Force. A. . Discuss a Proposed Policy on Special Assessments for Street Reconstruction . Projects Dresel presented an explanation of how the Task Force developed the special assessment recommendations. He presented charts to analyze how much General Fund money will be necessary for a rebuilding cycle of 40 years and to illustrate the tax impact of various options. During discussion, the staff responded to questions from the Councilmembers. It was the consensus of the Council that a 1/3 special assessment rate for street reconstruction would be appropriate. Hurm presented for the Council's consideration each of the sections of the proposed special assessment document including procedures, policies, methods, and deferred assessments. . The Council provided policy direction with regard to the provisions of the Proposed Special Assessment Policy for Street Reconstruction Projects for inclusion in the final document which will be brought before the Council in ordinance form. B. Discuss Badger /W oodhaven Wells - Rescheduled. 2. ADJOURN WORK. SESSION Lewis moved, Daugherty seconded to adjourn the Work Session at 10:05 p.rn. Motion passed 5/0. RESPECfFUIL Y SUBMrl"l'ED. Arlene H. Bergfalk, Recording Secretary TimeSaver Off Site Secretarial 1 c26 . . RESOLUTION NO. - 93 RESOLUTION APPROVING INTOXICATING LIQUOR LICENSE SUNDAY AND CLUB WHEREAS, the Shorewood City Code, sections 402.02, 403.05, 1300.01 and 1300.02, provides for the licensing of the sale of intoxicating liquor in the City and requires a special license for Sunday sales; and WHEREAS, said code provides that an applicant shall complete an application, shall fulfill certain requirements concerning insurance coverage, and shall pay a licensing fee; and WHEREAS, the tOllowing applicant has satisfactorily completed their application, and has fulfilled the requirements for the issuance of a Special Club License for the "on-sale" of intoxicating liquor and for a Special License for "Sunday Sales". NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: 1. That a Special Club license for the "on sale" of intoxicating liquor and a Special License for Sunday sales be issued for a term of one year, from June 1, 1993, to May 31, 199.4, consistent with compliance with the requirements and provisions of Title 400 of the Shorewood City code, to the following applicant: Applicant Address American Legion Post #259 24450 smithtown Road Shorewood, MN 55331 ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 10th day of May, 1993. Barbara J. Brancel Mayor ATTEST: James C. Hurm City Administrator/Clerk 3A APR 2 6 /993 MINNESOTA DEPARTMENT OF PUBLIC SAF\~ PS9016(11.89) LIQUOR CONTROL DIVISION quor Control will not approve or _ 333 SIBLEY. ST. PAUL. MN 55101 release any license until the $20 TOO: t 612 J ~97 - f190 PHONE (612) 296-6434 Retailers Identification Card fee is received by MN Liquor Control. APPLICATION FOR CLUB ON SALE RETAIL LIQUOR LICENSE This application shall be completed by an officer of the club seeking a license. This application and the proof of liquor liability insurance must be filed with the city clerk or the county auditor. To qualify for a license a club must have at least fifty members, been in continuous existence for at least three years, have an elected governing board and limit sales to members and bona fide quests only. The annual license fee is set by statute (M.S. 340A.408). Granting of a license by the city or county is discretionary. Minnesota I.D.1I9503600 TYPE OR PRINT Corporation Name Club Trade Name or DBA Clarence Clofer Post 11259 Am. Legion Clarence Clofer Post 11259 Am. Legion .ense Location (Street Address) License Period Business Phone 450Smithtown Rd. 6-1-93 T05-31-94 From 612)474-3982 Municipality County State Zip Code Shorewood, Hinnesota Hennepin HN 55331 Building Owner's Name Building Owner's Address Clarence Clofer Post 112 5 9 Am. Legion 24450 Smithtown Rd. , Shorewood,Mn.5533 Club Manager's Name Are there any delinquent DYes ~ No Anna Thole taxes on the property? I Name of Member of Managing Board Address James F. Herkal 6-29-24 24995 Glen Rd. , Shorewood, HN.55331 Name of Member of Managing Board Address enneth L. Dallman 10-2-45 5780 Eureka Rd.,Shorewood, Hn.55331 Name of Member of Managing Board Address Baylon J. Leifermann 5-17-31 5775 Grant Lorenz Rd.,Excelsior,Mn.553 Name of Member of Managing Board Address j.' - The Licensee mu'st have one of the following: CHECK ONE 00 A. Liquor Liability Insurance (Dram Shop) - $50,000 per person; $100,000 more than one person; $10.000 property destruction; $50,000 and $100.000 for loss of means of support. ATTACH "CERTIFICATE OF INSURANCE" TO THIS FORM OR D B. A Surety bond from a surety company with minimum coverage as specified above in A. OR D C. A certificate from the State Treasurer that the Licensee has deposited with the State. 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PAUL,MN,~5101 ::'i<?t;':...:,~:~S;:;"','~,:'-:,,-~~;:;:;.:,--,';''1 .;(11 PHONE (612) 296-6159' O:>~~"'" .:,..<r'~~' ~ "~' . :t".' ," .,' . . . ;i~f!f/~~tg?:,.;:.t,<:.'.APPllqATIO"" F9R RETAILER'S (BUYER) CARD FOR LIQUOR OR WINE' H2}'::',',,(PLEAs~.S~E, ~EVERSE Sl~~,-:: 'f f'E $2000 ';l.,fQliINSl:R!JC;r'~t" ' " " ~\:-~~~j '8:~~:7f!?~IT~~It:~~:,::. TYP.~.COP ~:; ~::~:;''''~''f~~ ~t ~'%~"Y" :~j~~ ErI{~: fi"fi, " WH~'~io~:: ;.~;~y:~ T07~ , ~: -;~~ by ,~~ ~ ,'if," ,-7b' <:5 C '~!".I"".;.L.~, -''',-"" -";"",.,', ~~JYr~ iJ;4j;J2 ~ ~/\...~; ;~17;;.".~;tt~~~lC"1"'7'~':i}~;(;" '..c" ,', ," ~i'". '~ ~ "', .' .,~ ':1 JJ~...,~..,> ," · . ". ~, ... ... ~.-t. .~'~; .'. . ~",!. .:,....::.... .. .,' '. -" .,.... .:.-?,-!" 133.1 Clarence .:::;_ :,..n.....""TV. ~ CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD SHOREWOOD, MN 55331 OFFICIAL RECEIPT No. I,. .;.:. .~ }(~ .- i,... CASH 0 FUND ACCOUNT AMOUNT 7if/ CITY OF SHOREWOOD ~.. I. 1-' I';;' I I i :. ,~ ...\ . ,./J I , " '(po c>' ,,' Jt,; "', l I..V, . ~,L .' () ~ :.:- t./ VI ,0 ,-:!J./ , - .' . .. ' .. ~.' .~ ': . :' ~ . . . RESOLUTION NO. -93 RESOLUTION APPROVING INTOXICATING LIQUOR LICENSE ON SALE OF INTOXICATING LIQUOR AND SPECIAL SUNDAY SALES WHEREAS, the Shorewood City Code, sections 402.02, 403.05, 1300.01 and 1300.02, provides for the licensing of the sale of intoxicating liquor in the City and requires a special license for Sunday sales; and WHEREAS, said code provides that an applicant shall complete an application, shall fulfill certain requirements concerning insurance coverage, and shall pay a licensing fee; and WHEREAS, the following applicant has satisfactorily completed this application, and has fulfilled the requirements for the issuance of a license for the "on sale" of intoxicating liquor and for a special license for Sunday sales. NOW, THEREFORE, BE IT RESOLVED by the city Council of the City of Shorewood as follows: 1. That a license for the "on sale" of intoxicating liquor and a special license for Sunday sales be issued for a term of one year, from June 1, 1993, to May 31, 1994, consistent with compliance with the requirements and provisions of Title 400 of the Shorewood City code, to the following applicant: Applicant Name Address Minnetonka Country Club 24575 smithtown Road Shorewood, MN 55331 ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 10th day of May, 1993. Barbara J. Brancel Mayor ATTEST: James C. Hurm City Administrator/Clerk 3B Minnesota Department of Public Safety Liquor Control Division : ~.:.: Rm.440 333 Sihley S1. ....: ~. '-0..: S1. Paul, MN 55101 ~.iiJ58."/ 612-296-6430 iDO: - ~ 612] 297 - 2100 CERTIFICATION OF AN ON-SALE AND/OR SUNDAY LIOUOR LICENSE ALL LICENSEES MUST HAVE J\ S20 aETAILERS ~RRS C~.~D RENEWABLE EACH YEAR. NEW LICENSEES CALL 612-296-6430 FOR APPLICATION AND INFORMATION. . '---1#:;)...)0 ':)'(p LICENSEE'S SALES & USE TAX ID NUMBER 2 <f I g Y / 7 To apply for sales tax number call 296.6181 or 1-800-657-3777 ISSUING AUTHORITY Y OF COUNTY OF see Name (Corporation,Partnership,Individual) DOB Trade Name or DBA Glub Assn. Inc Minnetonka Countr d (PO 360 Excelsior) CistYh d orewoo License Type (check one or both) License Period On Sale m Sunda From 6-1-93 On Sale License Num er On Sale Fee ay License Number 2-92 oo.eo Club If a Partnership, State the Name and Address of Each Partner; If a Corporation, State the Name and Address of Each Officer Partner Officer Name (first, middle, and last) DOB Title Address 9/36/ 5 Pr s. DOB Title Address 1 8 DOB Zip 55331 County Hennepin Busmess Phone 4 74~5222 Bohdan Witrak Partner Officer Name (first, middle, and last) PO 218 Excelsior, Mn. VP Title Same Address 'I" Licensee must have one of the following: i one: (ATTACH CERTIFICATE OF INSURANCE TO THIS FORM.) . Liquor Liability Insurance (Dram Shop) - $50,000 per person; $100.000 more than one person; $10,000 Property Destruction; $50,000 and $100,000 for Loss of means of support. or o B. A bond of a surety company with minimum coverages as specified above in A. or o C. A certificate from the State Treasurer that the Licensee has deposited with the State, Trust Funds having a market value of S100,OOO in ash or securitie . During the~t license year has a summons been issued under the Liquor Civil Liability Law (DRAM SHOP)? o YES li:JlI.f'- NO If es, attach a co of the summons. COMPLETE THOSE ITEMS THA T APPLY TRANSACTION TYPE 0 NEW 0 REVOKE/CANCEL RENEWAL 0 TRANSPER 0 SUSPENSION DATE OP REVOCATION/CANCELLATION DATES SUSPENSION Prom To ADDRESS CHANGE PROM TRANSPER OF OWNERSHIP PROM (NAME AND ADDRESS) I CERTIFY THAT THIS LICENSE WAS APPROVED IN AN OFFICIAL MEETING BY THE GOVERNING BODY OF THE CITY OR COUNTY. City Clerk's Signature Date IMPORTANT NOTICE ALL RETAIL LIQUOR LICENSEES MUST HAVE A CURRENT FEDERAL SPECIAL OCCUPATIONAL STAMP. ISSUED BY THE BUREAU OF ALCOHOL, TOBACCO AND FIREARMS. FOR INFORMATION CALL 290-3496. Control # 1992128 006 002 38 1'5 9011 (6-92) nl ,.... ':::'1::-' _,,_, I '_'1_ ..i....,.. ____' ... .L~. ._' 1 I I "_'L- . .....1._, '''_. I J.' 1~_. . CERTIFICATE OF INSURANCE: St pau1 Agency Ine 35 W Water st ~~1~~~267~N fIt04E612-227-9456 HI RtUm CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES ,NOT AMEND. EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. 93 -------~------------------------------------------------------------------- COMPANIES AFFORDING COVERAGE - ----- -------------------- --------------------------------------------------------------------------- (."()1PANY U:TfER A st Paul Companies --------------------------------------------------------------------------- Minnetonka country Club Associati9n, Inc. 24575 Smithown Road Excelsior MN 55331 CD-lPANY LETTER B --------------------------------------------------------------------------- (;().1PANY LETTER C -----------------------------------------------------------~----------~-~~- CGlPANY LETTER D --------------------------------------------------------------------------- > COVERAGES <=========E.......ft._~.=:=============~.&..w......-..-...e.:====;==========CZCKM.......~~-.--.-.---........-_..K..K~Z THIS IS TO CERTIFY THAT POLlCIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQuIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOClfolENT WITH RESPECT TO WHIOi lHlS CERTIFICATE MAY aE ISSUED OR MAY PERTAIN, THE INSURANCE AFfORDED BY THE POLICIES DESCRI9(D UEREIN IS SUBJECT TO ALL TERMS, EXCLUSIONS, AND CONDITIONS OF SUCH POLICIES. ~IMITS SHOWN MAV HAVE BEEN REDUCED BY PAID CLAIMS, ('.(}\PANY LETTER E ________________________~~__________________________~w______-__________________________~_________________------------------------ co lTR TYPE OF INSURANCE POLICY NlX'1BER POLICY EFF DATE POLICY EXP DATE LIMITS ___ ________________________________ _______________._____....li.._____ _______..._------ -------------- .---------------------------------. GENERAL LIABILITY GENERAL AGGREGATE ------------------- -------------- ] COMMERCIAL GEN LIABILITY [ J CLAIMS MADE [ J oct. [ ] OWNERS'S & CONTRACTOR'S pROTECTIVE PRO()..CX)tP/OP AGG.' ------------------ -------------- PERS. , ADV. INJURY ------------------- -------------- EACH OCCURRENCE ------------------- -------------- [ ) [ ) FIRE DAMAGE (ANY ~E FIRE) ------------------ -------------- MED. ExPENSE (At('( ~E PERSON) --- -----------------_.----------~- -------_._------------~----- --------------- -------------- ------------------- -------~------ AUTOMOBILE LIAB COMB. SINGLr LIMIT ------------------- -------------- [ ] At('( AUTO BODILY INJURY [ ] ALL G4NED AUTOS (PER PERSON) [ ] SCHEDuLED AUTOS ---------------~--- -------------- [ ] HIRED AUTOS BODILY INJURY { ] NON-OWNED AUTOS (PER ACCIDENT) [ J GARAGE LIABILITY ------------------- -------------- ___ ~CE~s--LIABrLITy-m ___u_____________~____ __m_________, ------------- ~=: -- ------ . [ ] UMBRELLA FORM ------------------- -----------~-- [ ) OTHER THAN l.I'\BRELLA F'ORM AGGREGATE ___ ________________M______________ --------------------------- --------------- -------------- ------------------- -------------- WORKERS' COMP AND EMPLOYERS' LIAB ___ _____________________________~_ ________----------M------- _____ --------- --------~-~~ OTHER A Liquor Liability 563JN9687 06/01/93 06/01/94 ISTAMORY LIMITS EAbi ACCIOENT DISEASE-POL. LIMIT DISEASE-EACH rHP. -------------------------------- ---------------------------------------~-_.------------------- --------------------------------- -------------------------------- 2}iOOpOO CSL DESCRIPTION OF OPERATIONS/LOCATIONS/vEHICLES/SPECIAL ITEMS ~ CERTIFICATE HOLDER <..c:===========t........s== ===> CANC~LLATION <:============~2_...................~.2X&CKm~a.E--.--.-.~aW.. SHOULD ANY OF THE ABOVE DESCRIBED POLICIES sr CANCELLED BEFORE THE EX- '" PIRATlOO DATE THEREOf, THE ISSUING C()1PANV WIlt. ENDEAVOR TO HAIL 30 = DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. BUT = FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO 08LIGATION OR LIABILITY OF = ANY KINO UPON THE COMPANY. ITS AGENTS OR R~PRESENTATIVES. City of Shorewood 5755 Country Club Shorewood M~ 55331 _ACORD 25-S (7/90) Rd ~--------------~------------------------------------------------"----------- = AUTHORIZED REPRESENTATIVE Carol Tveit MINNETONKA COUNTRY CLUB ASSOCIATION. INC. EXCELSIOR. MN 55331 INVOICE DATE NO. . V-4 . DETACH AND RETAIN THIS STATEMENT TME ATTACHEO CHECK IS IN PAYMEN"f OF' ITEMS CESCRIBEO BEL.OW. IF NOT CORRECT PLEASE NOTIFY US PROMFDTL.Y. NO RECEIPT OESIRED. DELUXE. FORM WVC-3 V-4 DESCRIPTION TOTAL AMOUNT DEDUCTIONS DISCOUNT FREIGHT NET AMOUNT Liquor license 6/1/93 to 6/1/94 7,500 200 7,700 ~ CITY OF SHOREWOOD . 5755 COUNTRY CLUB ROAD ~ SHOREWOO~, MN 55331 Date 11- c2/ Rerived of ~~~~e:~ev d~~ ~ .~ ~ -<:t..- /~~~ ~OLLARS $ ? 7~ v& For f7' /A-~ ~--;--- - ~ J -h ~~ eL4 If ~ . / tI CASH 0 CHECK~ I FUND I ACCOUNT I AMOUNT I OFFICIAL RECEIPT 19628. 19 9$ No. FUND /0 ACCOUNT ~c:1~.3 AMOUNT ~ 7't7~, ~ / fz{r CITY OF SHORE WOOD WHITE - To Person Making Payment CANARY - To Finance PINK - Retained by Clerk . . RESOLUTION NO. -93 RESOLUTION APPROVING NON-INTOXICATING MALT LIQUOR LICENSE WHEREAS, the Shorewood City Code, sections 402.02, 1300~01 and 1300.02, provides for the licensing of the sale of non-intoxicating malt liquor in the City; and WHEREAS, said code provides that an applicant shall complete an application, and fulfill certain requirements concerning insurance coverage, and shall pay a licensing fee; and WHEREAS, the following applicant has satisfactorily completed the application, and has fulfilled the requirements for the issuance of a license for the "off sale" of non-intoxicating liquor. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: 1. That a license for the "off sale" of non-intoxicating malt liquor be issued for a term of one year, from June 1, 1993; to May 31, 1994, consistent with compliance with the requirements and provisions of Title 400 of the Shorewood City code, to the following applicant: Applicant Name Address Vine Hill Market 19215 State Highway 7 Shorewood, MN 55331 ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 10th day of May, 1993. Barbara J. Brancel Mayor ATTEST: James C. Hurm City Administrator/Clerk 3C No. 2341h-State Form 109. BUSINESS RECOROS CORPORATION, MINNESOTA STATE OF MINNESOTA Combination Application for Retailer's (On-sale) (Off-sale) Non-Intoxicating Malt Liquor License (l/T)" OF -.J;!tJ,(Ewtt>aiJ 1'0 the /II'1/NN c! f 0 7;Itl Count!! of I-IEN/tJ6~/N J ._-':723Lr1E-L_ _ _I.L_ -L:y'l..E ~flf Si/o.e[C-tlt'OtJ , county of /-1 cIVN~j'/"'; , StatIJ of ..IIillm'sa{n, hcrcby make flpplication for a Retailer'., ~} (Off-..alc) .Yon-intoxicatinl! .Alalt Uqll'flr Ue"II..,,' tfl .".ft .'/I.,'h .Halt li'f/wr Itnd,'r ",ul "/l.r"l/ant to an ord;nun,." (r".<o(llf.ion) pa....,.d IJY <'ity (,fI/(I/";(. "fI/(1/I!! Ii fill If' 01----- ,~llo;('E_..v~""?__ M~__.___._ _ __ __ ______ __. ruul Chapter 340, ,Alinnesota Statutes 1945, as amended, providing for liccnsin!! and re!!ulatin!! the ,ale of non-intoxicatin!1 malt liquor. Dltrin!! the past five year.., my re.,ulence hiM bcf'''' as fallows: 0l7~d1-S: 6'Lvt!- -e IiJ?C L~r:! Si-h,et "uootJ Name of Ucenalnll' authority (count,>> (city) -____. fll 11/('@, fir MN .fir..J ..J / I was born /J<rC-ifJI dl..:l. /</'1-1 nt /11omov 77r' 6E,for M"'r'.~ DAY Year Clt, I\/b:.1..i ..rus~y Uorouab Town State or County . I am a 0ative])(n~) citizen of thc United States. 6'~"'L1.ILl J: /l't...€ I am man'ied. .;}!y (wifc's) (,muirm:d'i') name and address is l-77VJrT/V7 __ c27.,t2.s- /?t.tI~ A//JW LA) J//o.('~r.M:Jo.JJ ".41'1./ I am proprietor. VINe ~ M/JIff.::ET Firm was incorporated in thc state of Corporation is authorizell to (lo lmsiness in Minnesota. Licensc is for ('*-4 (highway) located as follows: /9.5?/-5' #c.uy ....s- Ho,et tuCiOO 7 MN The license u'ill bc in connection with Dru.. Store. Care. Reauurant. Hotel. Club which has been in operation Montha Years . The establi..hnwnt is loea,ted on tlw /..JT' The b""ines.. pI'cmi.,cs are owned b!! /J1 Y J c' t. r Thc ta.-ves on the property are not delinq{U'nt. I am NOT "ngaged in the retail sale of intoxicating liqtUJr. I have At!<ll-e had an application for license rcjccted as follows: I hat'e never been convicted of a fclony nor oll,iolating any National or state liquor law or local ordino.nee relating to the manufacturc, salc or transportation, or poss68sion for salc or transportation 01 .intoxicatin!! liquor. Gambling or gambling deviccs wi-ll not bc permitted on the licensed prcmises. I am the owner of the leasehold, lurniturc, fixtures, and cquipment in the premises for which tM licensc is applied, cxcept floor. I have no intention or agreement to transfer the license to another person. I submit the following names of persons, including a bank, for reference, with whom I have had business. relatlollll as follows: tfoss /Jr>1WN/JSON,' /9MWNtJ SON C' l"9Nil>-:' ,6'Cc1?M/Nt-=-.lZ'1I/ tfS"/-.J.<.2::Z h-fJTJ1tf S,-/8../ltCtJ ,(-j/9,v/,. /~....y ': /11/NNr!7lJ.vM ?f7,/ -..:J~.:U' / I ;)0 ttl 0 I intend to engage in the sale of intoxicating liquor and will have a Federal Occupational Tax Receipt in accordance with the ordinance governing this license. My Federal Tax Stamp Receipt is No I will comply strictly with the provisions of the ,ordinance relating to the sale of soft drinb for "mixing" purposes and will serve patrons in full view of the public. I agree to waive my Constitutional Right:; against search and seizure and will freely permit peace officers to IDlIpect my premises and agree to the forfeiture of my license if found to have violated the provisions of the ordinance (resolutIon) providing for the granting of this license. I hereby solemnly swear that the foregoing statements are true and correct to~he bes of my knowledge and that I agree to comply with all the provisions of the ordinance under which this license is granted ::;:'''"' ..d '~m to bo<.,... "''' . ,,_ ~:~ ~?}I / NOTE: (.iCf'n8U may he i8llupd only to pf'nnns who are' <::itiuna of the ,United Statea and who are of good moral character and repute. who have nttninf"d thf' RKl' of 21 yen", and who arf' proprietore of thf' f'8tabliehmf'nts for.."-hich the IicenftB are il.lunt. Lawa 1949. c. 700. MAl S/}L fJ' -r/J y -#: ,3 oS &, ~ 0 )13 Fc30 I 1.> =1f-- 1// - /Si L;::;- 3.L 3C Cot~nty of ~tatt of ~innt5ota, ? The undersi~ned, county attorney and .heriff of .aid county, hereby recom7fWlnd the within. appti~ cation, it appearinl1 to the best of our knowledl1e that said applicant has not, within a period of five yeat'. prior to the datlJ of this application, violated any law relatinl1 to the .ak of no~in~tint malt liquor or into~icati7l'l1liquor, and that in our judl17fWlnt the applicant will comply with the law. and retulatio7tl rlJlatinJ! to the conduct of said buainess, Dated at , Minn., .19_ County .I1ttorney Sheriff }ss. . COUNTY OF ~tatt of ~inne5ota, TOWN OF It is herwy ClJrtijiW, that the Town Roard of the Town of in .aid County and StattJ, by ruolution on the nay of did consent to tM isllUa7tCll of the liClJnslJ applied for in the within applioation. Daten. .11 ttest . 19----. ,19_ THE TOWK BO.l1RD OF THE TOWX OF Town Clerk By , Chairman Kote: No County Board .hall is.UlJ liClJnIlJ for .ale in. any Town without the COnlent of the Town Boa.rd of .uch Town, and no Town Board .hall con8ent to the UllUanCiJ of any licenle without the written. reo- om7fWlndation of the County .I1ttorney and the Sheriff. .. ~ -- ~ < =~ ::: "\J ..... ~ ~~ ....~ Q 00.1 ..... ~ ..... ~ ~ <:::> ~ ~ > " 2 'V c.;, '::} '\J ~ .,; ~ ~ ~ c.. ~ .. ~ '.. <:l k~ ~ ~ ~ ~ ~ <:::> .... .... ~ ..... :j "4 ~ ~ '(' "I IU ~ ') . Q,) t1l = be ~ = :.::l~ t1l ~ t1l ~ '~ ... I' 's Q g Q,)]~~ ~ =....~ Q - " Z ~ ~~~~ ~ ~ I I 0:. 0:. .... .... j .... ~ ~ IJ .~ ~ ~ l) ~ " ~ l:! "'" " .. 0:: .~ '4 ~ .~ ~ ~ ~ :;: SENT BYAPR 21 '93 1~:15 INSURANCE AGENTS GROUP 896 0000TT INS MANAGERS 612 aee 0000 ( I'lr n 1.1( :A IT 01' I NSl 'n!\ N( L P.l .~ 2' , ",. II li!&ueUi,:te I 0/9.1 f jmh I Insured I, ProduCt.r Vine Hill Marks t 19215 Uighway 7 Shcrewood, MN 55331 Swett """'"c. M.n..n, Inc. 109 South Seventh Street Suite 600 Mlnneapolllf, MN 5540Z : Company AffuruiJlg Coverage Type ufT nsurance TraIll~ndnenta1lll.ur8Dce Company LIquor UabUlty THIS IS 'l'OCERTTJ7Y"HAT'l'H~ l)OUCY OfllNSUltANCEJ.J5TtD Bl:!LOWHM np.nN lSSUl:lr)Tt)TTIIlINSUKl:lI) NAMROASOVH 'FOR .TUE POUCY pp.RlCm INIJICATED, NOTWJ'I'HSTANDINC ANY KBQUIREM1lNT1 ']'HRM OR CC.1NI)ITlt"lN OF ANY Cl)N'I'JUCT OR ER I)OCUMHN'l' WITH RESPr.\C;'l' TO WHICH TIllS t:!ll'rIFICATE MAY ~S ISSUEr> (lR MAY PSnTAIN, '\'HE 1NSURANc;n ORDED BY "HII, 1l0L1CY DESc.;RIKHU 'l'HJ:!l~JN IS SlJBJ!(;'t' '1'0 ALL T1i! T!lJ(MS. EXCUJlflONS, ANn CONDlTIUNS Of SUCH liOLlCY. TBJS C:I!R'l'IlI1CATE IS ISSUEU AS A MATTIlR OY INFORMATION t')NLY ANI'> CONt'J:Uts NO ~1<'lH'I'~ lJro'l'THF : : (,;~R.TIPICATn 1.IC,)WIUt. THIS C~RTll'ICA'rEI)OBS NOT AMEND. EXTEN!) (lRALUR Tun COVl-!KAQEAPPORl)t!1) I5YTHE P01.IC;Y I BELOW, ' . N ~ir~lion Date s Renewal of LLP484 69 77 5/30/93 '/30/94 Location - 'anG il :;0,000 100,000 10,000 50,000 100,000 300,000 CJ 100.000 100,000 1 00,000 100,000 ] 00,000 300,000 o 300,000 , 300,000 300,000 300,000 300.000 300,000 Q 500,000 CJ 1,000.000 500,000 1,000,000 500.000 1,OOO~OOO SOO,OOO 1,000,000 500,000 1,000,000 500,000 1,000,000 Boou,y INJURY &CIJ Pf.RSON BomLY INJURY EAcfi {)t;c;ulUWNcn PKUi!1!RTY DIlMM1P. EM:H OCCl'RRF,NC:R Loss Of MRAN~ (lJi SUPPORT F."C:K FUSON I .C'lllS ()i! MIlANS 011 SUP11())t'l' &CJJ OCCt11U\BN(:i POl.I(;V AGOIUlGA'J"R (.l"t.ti"i~.llc IInlcl~r- C,Ul.:..ILlliulI IN "tiR ~V!!.N'l' 011 CANCJI,t.LA'fION OfTI lR A80VEDHSCRlmm POLIC:Y BiI.~OR.P. nil!. nXP1RATTON nATR 'I'Hl:!ltEOF, TIm ISSUING COMPANY W(LL MAIL 10 DAY~ WRITTBN CAN(;I:!L- LATION NOTIC.:n WfOllNON PAYMRN'I' AND 30 DA YQ WRl'l'l'IlN CANCIiJ.l,ATION NO'!'ICE IP POR ANY O'l'HBR RRASON'fO'l'HE T~~OL04M11lELEPT. City of Shorewood 5755 Country Club Roael Shorewood, MN 55331 .' . . .. '. . .' - . . . - .. . ~~ CITY OF SHOREWOOD OFFICIAL RECEIPT . 5755 COUNTRY CLUB ROAD . ~ SHORZ' MN 55331.' Date R~f '::;;~.;:d~.~ }~d~ '-" . ~ C DOLLARS $ ,..../)'cJ , ~- For c ~ ~~ 19641 . No. -/-L~ 19i?i ~ 00 - CASH 0 CHECK AMOUNT c.:::5't7.~ FUND ACCOUNT AMOUNT cdr CITY or SHOREWOOD WHITE - To Person Making Payment CANARY - To Finance PINK - Retained by Clerk 'H}~ . CITY OF SHOREWOOD MAYOR Barb Brancel , COUNCI L Kristi Stover Rob Daugherty Daniel Lewis Bruce Benson 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927 · (612) 474-3236 April 30, 1993 Mr. and-Mrs. John Steinhibel 27075 Beverly Drive Shorewood, MN 55331 . Dear Mr. and Mrs. Steinhibel, CITY OF SHOREWOOD JCH.al ACKNOWLEDGED: ~~~~,~ , Shannon steinhibel ," , - A Residential Community on Lake Minnetonka's South Shore Co ~ c...~c..:,\ ~ ) . , ~~.1~~"~ ~~~~ Qt(-\-\.)Q.....;h ~. ~ ..~ \J.-\~~ ~~ ~ ~ .~~- -r'r--.~'0.~ ...-\r...sL ...~~.. :-b. .. O\....~ . ~t.o.o.;).- 'f",JL.\ ~\o:.lC,~__.~ _.~V'""'\~ \r'~ _.... \tv.Q.. 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FROM CITY OF CHRNHRSSEN 135.136.1993 138:55 P. 1 C ITV OF CH'AHHASSEN 690 COULTER DRIVE. P.O. BOX 147. CHANHASSEN. MINNESOTA 55317 (612) 937-1900' FAX (612) 937.5739 May 4. 1993 . City of Shorewood Attn: Mayor and City Council 5755 Country Club Road Shorewood, MN 55331 . Re: Request to Consider Friendly Annexation/Deannexation ProcedW'e so as to Allow Chanhassen' s Continued Panicipation in CDBO Funds Honorable Mayor and City Council: I would, like to thank the Shorewood City Council for allowing Mayor Chmiel and me the opportunity to make our presentation on this item this past month. We sincerely appreciated the generalized support given by the Shorewood Council, albeit a greater definition of the proposal was desired. As a follow up to that meeting, J. Scotty Builders did reappear on the Chanhassen City Council agenda that same evening. Ba'sed upon Mayor Chmiel's and my feeling that we had general support from the Shorewood City Council, the Chanhassen City Councll acted to remove.. the condi tion which linked sewer and water extension to the annexation procedure. Accordingly, J. Scotty Builders can move forward without concern about resolving the annexatlon/deannexation process. During the course of our meeting with you, I noted that Chanhassen would abandon any request to annex one or more lots in the Deer Ridge subdivisIon if an alternative solution could be found for our continued participation in the CDBO program. As you will recall, both Chanhassen and Shorewood benefit from our continued eligibility as our population generates approximately $53,000 in revenue for the Hennepin County entitlement area, while the city receives approxil!lately $42,000 of that for discretionary projects. The approximate $11,000 differential is shared by all cities in the entitlement program. Secondarily, a sizeable portion of Chanhassen's COBO funds goes to projects which are jointly funded between Shorewood and Chanhassen, i.e. the Sojourn facility and the South Shore Senior Center. Our loss of eligibility jeopardizes our ability to participate In funding these worthwhile programs. As stated above, if we fil1UIu1ternative we would abandon the r~uest to annex a portion of J. Scotty Builders' plat. We would do that recognizing the difficulties which we will face in n- t.., PAINTEO ON AECVCI.EO PAPER FROM CITY OF CHRNHRSSEN 05.06.1993 08:56 P. 2 Mayor ~nd City Council May 4. J 993 Page 2 attempting to resolve police, fire, paramedic, and voting concerns for the one or two new lots potentially being annexed by Chanhassen. WE HAVE FOUND THA UL TERNA TIVE. The home owned by Gerald and Lynn Cox at 6200 Cardinal is half in Chanhassen and half in Shore-wood. According to Mr. & Mrs. Cox, their four-bedroom home has two bedrooms in Hennepin County and two bedrooms in Carver County. (See attached aerial photograph. The line bisecting the home is the Hennepin/Carver County boundary line.) The unbelievable part of this "fmdtl is that Mr. & Mrs. Cox receive All of their services from Chanhassen, i.e. sewer, water, police, fire, paramedic, etc. In addition, Mr. & Mrs. Cox vote in Carver County. The Hennepin and Carver County Assessors agree that the Cox's property lies in both counties, and currently tax on the basis that 60% of the property is in . Chanhassen and 40% in Shorewood. Mr. & Mrs. Cox recognized that their home is split between the two counties and stated that the only real problem for them has been the calculation of taxes, as a manual calculation process is required because of the unique nature of the property. According to them, it is not unusual to have the taxes recalculated two or three times until all parties agree. Larry Blackstad, Hennepin County CDBO Coordinator, has stated that he is confident, should Shorewood agree to the annexationldeannexation process, that Chanhassen would maintain its eligibility in the CDBOprogram. Shorewood may wish to make this a condition of approval, i.e. that the annexation/peannexation process would not be filed/completed until HUD had ruled that Chanhassen does in fact receive eligibility through this action. The only drawback that I can see to Shorewood is a loss of its share of the 40% of the taxes derived from the propeny, My calculation shows that this amount is $105.00 for 1993. Effective for 1994, if approved, the $105.00 previously received by Shorewood would be paid, by the Hennepin County Auditor, to the City of Chanhassen together with an additional $23.00 . (Chanhassen's tax capacity rate is approximately S% higher than Shorewood's). Assuming tax rates stay the same, the amount of money paid by Mr. &, Mrs. Cox to Hennepin County would be exactly the same as this year, the amount paid to Carver County would be the same as paid this year, and the amount paid to the school district would continue to be the same. (In the case of the school district, they receive a check for 40% of the school portion from Hennepin County and a separate check for 60% of the school's taxes from Carver County--see attached sheets.] I have attached a draft copy of the resolutions which would be required to be passed by both the Chanhassen City Council and Shorewood City Council. The City Attorney is still waiting for the legal description for that part of Mr. &, Mrs. Cox's property in Hennepin County (referred to as Lot 20 on your maps). I have also included a copy of a consent form which we are asking Mr. & Mrs. Cox to sign. Although their agreement to the annexation/deannexation process is not required under state statute, we believe it is important that they are a part of the process. I believe that they will agree to it, but time will tell. 1 would hope that the Shorewood City Council acts favorably upon our request to approve a friendly annexationfdeannexation procedure for Lot 20. FROM CITY OF CH~NH~SSEN .' , Mayor and City Council May 4,' 1993 I Page 3 : I thank you in advance for your consideration. Sincerely, ~~ Don Asbworth City Manager . DA:f Attachments . 05.06.1993 0e:57 P. 3 'j I ! IH Ii z, ,'il. I! n I:~~ II I~i z:I~. ~j ,: I~ ., .f!: ! . s~ ;= I II;=~ ~ I ~ ~a~5 ~ ~~ 5~ , ~ !t2J1:~' '^ ~t!~' k~t2~ ie I' ::~;~ . . !li~~~ll h .!l~~i~~ HI I h~:~ ~l!l!!fi. . II ;6 1l!\!!2 . I!;I!~~~UI i~~ ll~ . '.. i; ;5~1;1 i~~. ~a . ~ i Iuieu !~~" ' ~ "I iu~ J:l" " , ;.I~I ~~ ;" J~ · . ' ;.. u I- ;~ ,', , ....1. ,. .t::". ' I !'~::s ,It ~ . :Ii: , i h~. . . .. '. .' g; '. . .. .. .' . 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L._!~...Ii... I .~. I 64 I ,I' I i '-'~-; i ! . all~ . /'-2.,(,12) i~. _. ~~a.) . .I. j'I>"::...,.I. I -' :....; I t~.~ . . , , ft.,. \' FROM CITY OF CH~NH~SSEN 135.136.1993 138:59 y., ""'V" _v ...v...,. ..-~.-.~----.~..-..-.~...., f- E j"'$~~::'/:)'''''''''''''' .... . -.~-- _.....~~:3F~~~~- .~_..--___..A~....___~..._ . (21)..S99C\ ~~.., \.fnn" t , . ,~., . .....r..": ....... ~ '., . ..~ ~ ::;.:ir.,.. (2) 1 I ''''.' " 0.:..,. "---~..".t1 . ! I .. .0 ......_...:~..,.,'l~........~f.~....... ....'II.........~ .............. ......~.... ... ....- r.... ~~ \ -' - . . . .. w - IN";' - , ; .,' \ ~}o I ,,~. It .~~, ~' J ':.,..J ~ r~./_ \ ... di '.' ./ . l~ \ ....,...J1 (2)" 11:: -~- I ~;., , ~., \ em \ ci J (3)'" ' ~ ('36) \ ..... (31) I '2 ,.-.... ..,~, .~ . ('5)' ........ II . (<:. , ,.},\;:. , 1 :::1"16,1~.. jl~ ~ 1 ... -'#""._ I ' ,t: \ ~ ,v.I' I ' ( ii;'" N ~\..-i.---~t\.-. .. I ~ l !Aft 9 ,~..') .. e .~..lI'4..___ .'.. . j-:"",o(.'" . , '\" \ '1. ...... . 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I. ~ 1.......17P.....j v,' ""I I ri / 1..'6 /-' ~ (21) ~ : ~ I . 1 I (~1) Ie ~. " . -" .._.~.. It , . GOVT LOT 6 @ 2S11.41 RES , /...cH- 2.0 , .--_..._.~_._~.~ (26) L i\: r' t: "_ ---.--........-....",.... STORM!SEWER DiSTRICT BOUNDARY SCHOOL OIST~ICT BOUNDARY - - ... ... ,. - - - FROM CITY OF CH~NH~SSEN 05.06.1993 09:00 P. 7 . I I I , 1~93 , . Kinnesota Munioipal Board 475 M~Coll Buildih9 366 ~.ekson S~r$et Sa1nt'p<<ul, Minnesota &5101 RE: City ot Chanbas$$n/Oity of Shorewood Concurrent Detaohment and Ann.xation of Incorporated I I i Land Oe~r Qoard Member.: PUrSUtlht to Minn. Stat. 5414.061 ~nd. Board Rulec enoloEJ$d please find: 1. $100.00 til.inq fee. 2. Map. , . 3. Oertified copy of City ot Cha~hassen Resolution. , 4. Certiti~d oopy ot City of Sho~.wOOd Resolution. 5. Consent of property ownQr. The prop&rty propoaed tor conourren;t d.taohment and annexation ("aubjGot prop.rtyn) is approximately 47,520 square feet. The .ubjeot proporty is a ..qment pt a lar;er parcel, part of which ourrently is in Chanhassen and part of whioh 1. in Shorewood. The detaohment/annexation wil~ result in the entire parcel beinq in Chanha...n. There 18 a ainqle family hO~9 on the property that b1seots the munioipal b~undaries. The subject prpperty receives all municipal service from Chanhassen, inclUd, in; aew.r, water, street aooeas, pOllc& proteotion, and tire proteotion. i I The purpoae of the detachm.nt/annexation 1Bl (1) to eliminate the probl&m of 8plitt1nq a .in;1e paro.l for tax purpos$a botween two oities, (2) to reflect the reality that Chanha~sen provides all oity 8ervice to the parcel, (3) to allow FROM CITY OF CH~HH~SSEH 05.06.1993 09:00 P. 8 Minhe~ota Munioipal Board , lPP3 pag_ 2 I I the city of ChanhassQn to .hara in Hennepin County's HOD blook grant tundinq. To participate in the fundin9, Chanha88en mUBt have ahoma 1n Hennepin county. : If you need any additional information, please call mal ~he cities are vary interested in having this pr009GS completed promptly. ! . I Very truly yours, ~ CAMPBELL, IIKNUTSON, SCOT~ Ie FUCHS, P,A. I lWa I ~ -r b..... Roger iN. Knutson Chanhassen city Attorney I I I i RNKcsrn 90: Don AShworth, Chanhassen city M~nager James Nurm, Shorewood City Admini8trator . . FROM CITY OF CHRNHRSSEN 05.06.1993 09:01 P. 9 ~E:80LU'I'ION NO. CITY OF CHANHASSEN CARVER AND HENNEPIN COUN~I~S, MINNESOTA USOLUTION CONOERNING taBI CONOUAUNT DITAOHHBNT AND ANN~XATZ9. O~ LAND . WKBREAS, Minn. S~at. I 414.061 authoriz.. the ooncurrent detachment and annexation of l~ndl and , WKERIAB, the ci~1es of Chanhassen and Shorewood have a9reed to the cQnourrent dotaohment and annexation of a p.roel of property. I . ; MOW, TBSlElOR!, 81 %~ k!SOLVED by the city Couno11 of the City ot Ohanhassen, Minnesota .. follows; 1. The fOllowinq described land 'hall be detaohed from the city ot Shorewood and annexed FO the City of'Chanha.sen1 , 2. This Reeolution i. continqent ~pon the City of Shor.wood adopting- a similar resolution approving the aforeman" tionod detaohment a.nd annexation and i. further contingent upon th$ approval df the Minnesota Municipal Board. ' 3. I The City Mana;er 1~ direotod to forward a oOPY of thiG Resolution to the City of Sho~.wood. Upon r$caipt ot a similar l"etaolut.t.on from the ~ity of Shorewood, he 1. turth~r dir.ot.a to torward a oopy ot thi. Resolution to the M1nn.mota. Munioipal Board.: Jj)AS8ID AND DULY ADOPTED this day ot . by the Oity Counoil of the City of Chanh~ssen. ; , 1P5l3, ATTEST' , I -Dona14 J. Chmiel, Mayor Don Ashworth, 'Clerk/Manager .... ( SEAL) ~3S2 FROM CITY OF CH~NH~SSEN 05.06.1993 09:132 P.10 RESOLUTION NO. I CI~Y OF SHOREWoOD H2NNEPIN COUNTY, MINNESOTA asSotUTION CONOBRHINQ ~H. OONOURRlNT DBTAOKMINT AND AHNIXlTI9N O. LAND ~IUA8, Minn. stat. I 414.061 Authorizes the conourrent dAtaohment and anneKatlon of land, and I i i . WHBUAB, the cities ot Chanhassen .nd Shorewood have agreed to the oonourrent d&taehment and 'nnexatio~ ot a parcel of property. ~ .OW, THBREFORI, II IT RBSOLVBD ~y the City Counoil of the City ot Sh6rewood, Minne~otA aa follows: i 1. ThQ tollowin9 described land *hall be detaohed trom the city of Shorewood and annexed ~o the city ot Cbanha888n: 2. 'hi. a.solution i. contingent ~pon the City ot Chanhassen adopt.in9 a similar resolution approvinq the aforemen" tioned detaohment and ann~xat!on and 18 further contingent upon the approval qt the Minnesota Munioipal 8oar~. i The City Administrator/Clark '1s dir.cted to torward a oopy of this Resolution to the City of Chanha...n. upon receipt of a .imilar resol~tion from th. city ot Chanhassen, The City Admini~trator/Clerk 18 further directed to forward a copy of this Resolution to the Minnesota Munioipal Board. . 3. PASSBD MD DULY ADOPTBD' thie (Say of _ by the City Counoil ot the City 01 ShcreWOOd. I , 1993, ( SEAL) I CITY OF SHORlWOOD , I BY' It,. Mayor ATTEST I It. AdminfStrator/Clerk S3S4 r~/JOI9S FROM CITY OF CH~NH~SSEN . 05.06.1993 09:23 P. 2 FROM CITY OF CHRNHRSSEN 05.06.1993 09:02 ~~NSI!:~ TH~ UNDERSIGNED i. tho te& owner of the property 4esQribed on the attaohed Bxhibit "Alt. ~he undersi9nad concurs in and consent. to the proposed dai;&.ohnlant trom the <.';1 ty ot Shorewood and the annexation to the City of Chanhaasen of. the property ~esoribed on the attftohed Exhibit "A". I GERALD CO~ 535$ r04/JO/93 P. 11 . . FROM CITY OF CH~HH~SSEH 0" . . 05.06.1993 09:03 P. 12 CITY OF CHANHASSEN 690 COULTER DRive. P.O. BOX 141- CHANHASSEN, MINNESOTA 55311 (612) 931-1900 . FAX (612) 937-5739 March 30, 1993 Mr. James Hurm, City Administrator City of Shorewood S7'S Country Club Road Shore wood, MN 55331 Re: Request for Shorewood to Consider a Friendly Annexation/Deannexation Agreement, Most Southerly Lot, J. Scotty Builders. Deer Ridge Plat Dear Mr. Hunn: Thank you for agreeing to place Mayor Chmiel and myself as the first item on your City Council agenda of April 12, 1993. Our request is simple. We would propose to have Shorewood agree to allow Chanhassen to annex the most southerly lot of J. Scotty Builders' plat entitled Deer Ridge. The request is solely to ensure that Chanhassen continues to receive Community Development Block Grant funds. Our 1992 allocation was $42,000, of which $4,000 has been allocated to purchasing the bus for the Sojourn facility, and approximately $6,000 for the South Shore Senior facility. We have put over $50,000 into these two programs over the past years, and would expect to do so in cOming years assuming that we can find a means by which to maintain eligibility for Community Development Block Grant funds. Losing Chanhassen's eligibility will, in all likelihood, place an undue economic burden on other communities, including Shorewood, currently funding Sojourn programs as well as South Shore activities. We anticipate representatives from Sojourn and the South Shore Center to additionally be present. The background, rationale. and other avenues pursued in our attempt to maintain eligibility for Community Development Block Grant funding can best be provided in my repon to the Planning Commission and City Council. The fOllowing has been copied from that report; i.e: Manaeer's CommeQts (3.1 ~.~~): J. Scotty Builder's request to allow extension of Chanhassen's sewer and water into Shorewood for their plat occurred at the same time that we were notified of our loss of eligibility for Community Development Block Orant funds. Given the size of suburban Hennepin County, they represent an entitlement area. (You do not need to apply for specific grants. Distribution dollars are based on the total suburban population. ft 0 ~ J PRINTED ON RECYCLED PAPER FROM CITY OF CH~NH~SSEN 05.06.1993 09:04 P.13 Mr. James Hunn March 30, 1993 Page :2 Minneapolis operates under a separate program. Carver County is not in the CDBG entitlement area). As Chanhassen is a split-county city, our entire population can be counted in the distribution formula as'long as we have residents in both counties. With the wid~ning of Highway S, the two houses which previously sat in Hennepin County were eliminated by the highway expanslon. The fmal notice received was the last in a series of appeals at various administrative levels within HUD. Hennepin County supported us through all of those pro~sses. Although there is a possibility that our federal legislators will introduce federal legislation to allow for oW' continued participation in CDBO monies, the chances of that are unlikely. In meeting with J. Scotty Builders, staff relayed that we would propose that the City . Council approve the final agreement, but they would condition that upon staff attempting to appeal to the Shorewood City Council to agree. to a friendly annexation/deannexation agreement for the most southerly lot. If Shorewood would agree to B friendly deannexation/annexation for the most southerly 10t,Chanhassen will then have re-met the conditions associated with the CODO program and retained oW' eligibility. [Note: We continue to receive eligibility for 1993 with 1994 being up for grabs.] Our appeal to Shorewood's City Council will be primarily on the basis of helping us maintain CDDO monies. They have a direct interest in our malntaining eligibility as we have contributed over $40,000 to the South Shore Center over the past years and would likely continue to contribute $4,000.$6,000 per year to that program. We believe this is warranted since seniors are mobile and many of our residents frequent both the Chanhassen and South Shore Centers. With the loss of our contribution, ShorewoodIBxcelsior/Tonka Bay would likely bear the brunt of those lost contributions. A second area which we will attempt ~o present to Shorewood is the fact that without our . agreement to extend sewer and water,no more than three lots could have been developed by ,. Scotty Builders. In essence, without our agreement/participation, the taxes potentially to be received by Shorewood from the propose:d six lots would then be reduced to Wee. Our position will be that by their agreeing to deanncx the most southerly lot, they still will have gained approximately $S,ooo per year that they would not have had had we not agreed to allow the extension of our sewer and water systems. The above points have been discussed with J. Scotty Builders. They were made aware of the {act that staff would be pushing {or this friendly deannexation/annexation proposal. Their fear has been that they would somehow ~ome a pawn in the Community Development Block Grant money debate. We attempted to assure them that staff would not recommend that we do that, i.e. that we would not recommend that the agreement be conditioned upon Shorewood's agreement to the deannexation process. Instead, we would be making our recommendation on the basis that the Chanhassen City Council was requesting Shorewood to agree to the deannexation process on a voluntary rather than a required basis. The final decision, however, rests with the aty Council. , . . FROM CITY OF CHANHASSEN 05.06.1993 09:05 P.14 . Mr. James Hunn March 3D, 1993 Page 3 l!ecQmmendatioo Approval of the agreement providing utility and sU'eet services to Deer Ridge is reconu:nended with the condition that staff be instructed to approach the Shorewood City Counell and request their consideration of a friendly deannexation/annexation process for the most southerly lot in Deer Ridge. In approving this item on March 22, 1993, the City Council acted to change my recommendation from "a request" to "a condition of approval/' The Chanhassen City Council's action is an attempt to demonstrate their strong comm1tment to Sojourn and the South Shore Senior Center. The thought of our losing monies to be able to dedicate to these two wonhwhile prosrams was seen as monumental. and my Council wanted to demonstrate that these programs are of vital interest to them. Again. Mayor Chmiel and I will attempt to relay polnts brought out in the above memorandum during our presentation Monday evening. I would like to add two additional points that I was unaware of at the time of making my presentation to the City Council. rhe first point deals with the method of distributing funds under the federal program to entitlement areas such as the Hennepin County entitlement area under which both of us receive funds. The formula used by the federal government allows split- county cities, such as Chanhassen. to include their total population in that formula. Por 1993 and 1994. Chanhassen' s 12.000 people produce $52.000 in entitlement dollars for the overall Hennepin County program. The redistribution formula adopted by Hennepin County has produced a reallocation back to Chanhassen of the $42.000. Accordingly. if Chanhassen were deleted from eligibility for 1994. the overall dollars back to the Hennepin County entitlement area would be reduced by $53.000 and each of the then remaining cities in the entitlement area. including Shorewood. would see their allocations reduced by approximately $11,000 (this is an aggregate number to the communities). The second point was brought to my attention by our election clerk (see attached memo). Her point was that the new lot will become a separate precinct with votes then being tabulated for that precinct. The question then becomes how secretive is your ballot. Jean has requested that the Shorewood Council consider allowing the southerly-most two lots to be annexed by Chanhassen. In doing such, we would more closely parallel the two homes that we had in Hennepin County prior to the Highway S widening project which took both of those homes. Although ballots were not totally secretive. you did have four votes being tallied versus the possible one or two if its solely one home. I apologize for the length of this letter. but I feel that it is imperative that I make one last polnt. That point is that if Shorewood agrees to the friendly annexation/de annexation procedure, that our city recognizes that that is being done solely to act in a cooperative manner with Chanhassen and to assure that funding continues for programs vital to both communities. If Chanhassen is successful in its continued efforts to have HOD reconsider their administrative positions, or if we are successful in obtaining federal legislation reinstating our COBO position. we will cease our efforts to pursue the annexation request. Similarly. if other road blocks occur which are FROM CITY OF CHRNHRSSEN 135.136.1993 139:136 ., Mr. James Hunn March 30. 1993 Page 4 beyond the control of Chanhassen or Shorewood. we will similarly:cease our request to effectuate the annexation process. i.e. if the State Annexation Board denies the request, HeMepin County refuses to recognize the annexation. emergency services to the one or two lots becomes unworkable. etc. In a111ikeUhood. if Shorewood approves the annexation agreement, it will take at least six to eight months to finalize all of the other agency approvals that would be required. By that point in time. we will have known whether our federal appeals have been accepted or not. These processes should not effect J. Scotty Builders from filing their plat. installing utilities. or building homes. Thank you for your consideration. Sincerely. () .---- /Il" ) t? CA,.... AL,...._ V~'~7 Don Ashworth City Manager DA:k Enclosures P.15 . . ~ . . 135.36.1993 39:136 p. 16 . CITY OF , CHANHASSEN 690 COULTER DRIVE. P.O. BOX 147. CHANHASSEN. MINNESOTA 55317 (612) 937.1~OO. FAX (612) 937.5739 May 4, 1993 Mr. &. Mrs. Gerald Cox 6200 Catdinal Lane Excelsior, MN 55331 I I Re: Proposed AnnexatJon of Lot 20 by the City of ChanhS;Ssen ! Dear Mr. & Mrs. Cox: i Thank you for meetJng with Mayor Chmiel. Councilman Mike ~ason, Emma $t. John. and me last night. Pursuant to your request. I am attaching all materials which' are currently belns sent to the City of Shore wood for their consideration as to the proposal by Chahhassen to annex Lot 20. I would have preferred havJnS all of these materials in your h~ds and prov~ding you with sufficient Ume to consider this proposal in advance of approachJng the Shorewood City ~uncU. However. the time frame Wlder which our eligibllfty for recelvins Community Development Block Orant funds In 1994 from Hennepin County has expired. HennepIn County will extend this de~dline if Chanhassen and Shorewood act I quIckly. Accordingly. J had no option but to make the presentation for the annexation concurrently with I you and the Shorewood Cfty Council. If there are any other materials whJch J have not enclosed. pJease feel free to contact Todd Oerhardt or Karen Enselhardt at City Hatl. (I wUl be gone the remaJnder of this week and w1l1 not return until Monday evening.] I By this Jetter. I am authorizing the expenditure of up to $150.00 for you to have yourattomey review the proposed annexation documents and to advise you on its meritS arM;! liabilities. Mr. Penbunhy, assuming that Is the attorney you choose, should bill the city directly for services provided. Should Mr. Penbunhyts estimated costs exceed the amount sho\VJlt you should again contact either Todd or Karen as to why he believes that the opinion may become complicated. Thank you again for tak.ing time from 'your' schedule to meet with us. Receipt of Community Development Block Orants Is vital to our conununlty If we are to continue funding programs such as Sojourn and the South Shore Senior Center. I am in hopes thai you wUJ find this proposal favorable and wfll agree to sign the consent fonn. I S1nCerel~ " . .&w~~ Don Ashwonh (L City Manager Attachments o p~fNTeo ON RECYCLED PAPER ; II' . . ORDINANCE NO. AN ORDINANCE AMENDING SECTIONS 903.09.1a AND 1301.02 OF THE CITY CODE ESTABLISHING A LOW INCOME MINIMUM WATER SERVICE RATE THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA, ORDAINS: section 1. section 903.09.1a of the City Code is hereby amended by adding the following: (1) Minimum Rate for Low Income Residents. A minimum charge is established for residents having low incomes. The charge shall be at 2/3 of the regular minimum rate, provided that consumption is under 10,000 gallon per quarter. Should the consumption exceed this minimum, the minimum rate reverts to the regular minimum rate. The criteria for determining low income is as set by the Hennepin County CDBG Program Income Limits for Very Low Income and family size. Residents must submit the proper application an~ income disclosure to be eligible for this rate. section 2. Section 1301.02 of the City Code is hereby amended by adding the following: Tvpe of Charqe/Fee Water Service - Low Income City Code Reference 903.09.1a(1) Charqe/Fee $15.00/qtr. minimum ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA, this 10th day of May, 1993. Barbara J. Brancel, Mayor ATTEST: James C. Hurm, City Administrator 9 ORDINANCE NO. -93 AN ORDINANCE AMENDING CHAPTER 901 OF THE SHOREWOOD CITY CODE ADOPTING AN ASSESSMENT POLICY FOR STREET RECONSTRUCTION THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA, ORDAINS: Section 1. Section 901.04 is renumbered as Section 901.05. Section 2. Chapter 901 of the Shorewood City Code is hereby amended by adding the following: SECTION 901.04 - STREET ASSESSMENT POLICY Subd. 1 - SCOPE AND PURPOSE . This policy is intended to provide a fair, equitable, and consistent means of allocating the cost of street reconstruction improvements to existing streets. This policy does not apply to new construction nor to maintenance functions which are defined as patching, seal coating and overlay. Street reconstruction is considered to be any street improvement over and above these maintenance functions. Subd. 2 - DEFINITIONS . b. a. Adjusted Front Footaqe: A method for determining the average front footage for odd-shaped lots which would be equivalent to the footage of a rectangular shaped lot of the same area and depth. Building Site: An area of land on which a building exists or an area of land meeting city code requirements on which a building could be constructed. c. Construction Cost: Amount paid to contractors for constructing the improvements. d. Construction Interest: Cost of financing the improvements from the time the project is initiated until the assessment roll is approved by the City Council, less any interest earned on invested funds. The interest rate will be at the expected assessment rate. e. Equivalent Residential Units: Equivalent residential units are the number of assessment units into which a large or unplatted parcel of land, which abuts a City functionally classified collector or arterial street, is divided in order to determine an assessment rate. The number of equivalent residential units is determined by dividing the adjusted front footage of the parcel by the average street footage of the project. 10 f. Front Footage: The shortest dimensions of existing or potential sites abutting the streets. g. Lot: Land occupied or to be occupied by a building and its accessory buildings, together with such open spaces as are required under the provisions of this zoning regulation having not less than the minimum area required by this Zoning Ordinance for a building site in the district in which such lot is situated and having its principal frontage on a street, or a proposed street approved by the Council. h. Lot: Corner: A lot situated at the junction of and abutting on two (2) or more intersecting streets; or a lot at the point of deflection in alignment of a single street, the interior angle of which is one hundred thirty-five degrees (1350) or less. . i. proiect Cost (Total Cost of Improvements): All construction costs, plus costs for administration, engineering, legal, fiscal, easement acquisition assessing, and any project related work previously done but not assessed. j. Residential Unit: A residential unit is a platted single family residential lot which, in accordance with the City of Shorewood's zoning and subdivision regulation, cannot be further subdivided. k. Side footaqe: The longest dimension of existing or potential corner building sites abutting the street. Subd. 3 - SPECIAL ASSESSMENTS a. Benefit Principle . Special assessments, as authorized by Minnesota State Law, Chapter 429, may be levied only upon property receiving a special benefit from the improvement. In Minnesota, the Constitution and courts apply this general rule by placing the following limitations upon the power to levy special assessments: 1) the rate must be uniform and consistent upon all property receiving special benefit; 2) the assessment must be confined to property specially benefitted; and 3) the amount of the assessment must not exceed the special benefit. The special assessment is a financial tool employed by the City of Shorewood as a means of allocating the costs of specific improvement projects to the benefitted properties and spreading those costs over a number of years as specified by the City Council. 2 . Special assessments are billed to the property owner along with real estate taxes. There is, however, a distinct difference between taxes and special assessments. Real estate taxes are a function of the real estate value as determined by the municipal assessor, while special assessments are a direct function of the enhancement of value or the benefit which a specific improvement gives to the property. b. Consistent & Equitable Once an improvement project is initiated and it is determined that the improvements are necessary and desirable, the special assessment procedure is intended to equitably and consistently allocate and levy the cost of specific improvements to the benefitted properties. . The City must recover the appropriate portion of the expense of installing public improvements, if undertaken, while ensuring that each parcel pays its fair share of the project cost in accordance with these assessment guidelines. This policy sets forth the general assessment methods and policies to be utilized by the City Administrator and City Engineer when preparing assessment rolls for approval by the City Council so as to assure uniform and consistent treatment to the various properties from year to year. The following policy is general in nature, and that certain circumstances may justify deviations from stated policy as determined by the City Council. . Subd. 4 - SPECIAL ASSESSMENT PROCEDURE A flow chart on the Shorewood Public Improvement Process for Special Assessment projects giving a detailed explanation of the process is shown on the next page. a. Initiating" the Proceedings Improvement proceedings may be initiated in anyone (1) of the following three (3) ways: 1. By a petition signed by the owners of not less than thirty-five percent (35%) of the frontage of the real property abutting on the streets named as the location of the improvement; 2. By a petition signed by 100% of the owners of real property abutting any street named as the location of the improvement. Upon receipt of a petition of 100% of the abutting property owners, the City Council must determine that it has been signed by 100% of the owners of the affected property. After 3 . making this determination, a feasibility report shall be undertaken and the project may be ordered without a public hearing; or 3. By the initiative of the City Council. Petitions for improvement shall be referred for Administrative report and estimated budget. A simple majority vote of the City Council is needed to start the proceedings. Whether initiating the proceedings or accepting a petition requesting such proceedings, the City Council may simultaneously order a feasibility report on the proposed improvement. Feasibility reports shall be paid for by the City in the case of street reconstruction projects and recouped once the project is completed under the terms of this policy. Preparinq the Feasibility Study . b. An improvement project which is initiated by action of the City Councilor by a 35% petition may be ordered only after a public hearing. Prior to adopting a resolution calling a public hearing on an improvement, the Council must secure from the City Engineer a report advising it in a preliminary way as to: 1. Whether the proposed improvement is feasible; 2. Whether the proposed improvement is consistent with Capital Improvement Planning; 3. Whether the improvement should be made as proposed or in connection with some other improvement; 4. The estimated cost of the improvement; . 5. A proposed project schedule; and 6. Any other information thought pertinent and necessary for complete Council consideration. c. Holding a Public Hearing on the Improvement Improvement projects which are initiated by a 100% petition may be ordered by the City Council without a public hearing if the City Council determines the project may be undertaken without unreasonable changes to the Capital Improvement Finance Plan or the petitioning property owners agree to pay 100% of the cost of the improvements. In the case of a Council-initiated project or petition of less than 100% of abutting property owners, the Council must adopt a resolution calling a public hearing 4. . '. on the improvement project for which mailed and published notices of the hearing must be given. The notice of public hearing 'must include the following information: 1) The time and place of hearing; 2) The general nature of the improvements; 3) The estimated cost; and 4) The area proposed to be assessed. Not less than ten (10) days before the hearing, the notice of hearing must be mailed to the owner of each parcel in the area proposed to be assessed. The notice of public hearing must be published in the City's legal newspaper at least twice, each publication being at . least one week apart, with the last publication at least three (3) days prior to the hearing. At the public hearing, the contents of the feasibility study will be presented and discussed with the intent of giving all interested parties an opportunity to be heard and their views expressed. d. Ordering the Improvement and Ordering Preparation of Plans & Specifications Following a public hearing a resolution ordering the improvement may be adopted at any time within six (6) months after the date of the hearing by a four-fifths (4/5) vote of the City Council, unless the petition was initiated by a 35% petition in which event it may be adopted by a majority vote. The resolution may reduce, but not increase, the extent of the improvement as stated in the notice. At this time a special assessment is considered to be "pending" for all asse~sable properties in the improvement area. After the order of an improvement project, the City Council must order the preparation of plans and specifications which may be included as part of the resolution ordering the improvements. When the Council determines to make any improvement, it shall let the contract for all or part of the work, or order all or part of the work done by day labor, no later than one (1) year after the adoption of the resolution ordering such improvement unless a different time limit is specifically stated in the resolution ordering the improvement. 5. e. Advertising for Bids If the estimated cost of the improvement exceeds $25,000, bids must be advertised for in the legal newspaper and such other papers and for such length of time as the City Council deems desirable. If the estimated cost of the improvement exceeds $100,000, the advertisement must be in a paper published in a first class city, or in a trade paper not less than three (3) weeks before the last date for submission of bids. The notice must contain the following information: 1. The work to be done; 2 . The time when bids will be publicly opened, .which must be not less than ten (10) days after the first publication of the advertisement when the cost is less than $100,000, and not less that three (3) weeks after publications in all other cases, and . 3. A statement that no bids will be considered unless they are sealed and accompanied by cash, a cashier's check, bid bond or certified check for such percentage of the bid as specified by the City Council. f. Awarding Contracts Following receipt of the bids, the City Council must either: 1. Award the contract to the lowest responsible bidder; or 2 . Reject all bids. . The contact must be awarded no later than one (1) year after the adoption of the resolution ordering the improvement unless that resolution specifies a different time limit. The City Council may purchase the materials and order the work done by day labor or in any manner it deems proper if: 1. The initial cost of the entire work does not exceed $25,000; 2. No bid is submitted after advertisement; or 3. The only bids are higher than the engineer's estimate. 6. g. . h. Preparing Proposed Assessment Roll After the expenses incurred or to be incurred in the completion on an improvement have been calculated as defined in Section VI-C Project Costs, the City Council must determine the amount it will pay and the amount to be specially assessed. The City Engineer and Administrator/Clerk must calculate the amount to be specially assessed against every parcel of land benefitted by the improvement. The area to be assessed may be less than, but not more than, the area proposed to be assessed as stated in the notice of public hearing on the improvement. The assessment roll should contain a description of each parcel of property and the assessment amount including any deferred assessments. The assessment roll must be filed with the City Administrator/Clerk and be available for public inspection. Holding Public Hearinq on Proposed Assessments A public hearing on the special assessments must be held following published and mailed notice thereof. The notice of the assessment public hearing must include the following information: 1. 2. 3. 4. . 5. 6. 7. The date, time and place of the meeting; The general nature of the improvement; The area proposed to be assessed; The total amount of the proposed assessment; That the assessment roll is on file with the Clerk; That written or oral objections will be considered; That no appeal may be taken as to the amount of assessments unless a written objection signed by the affected property owner is filed with the City Clerk prior to the hearing or presented to the presiding officer at the hearing; and 8. That the owner may appeal the assessment to the district court by serving notice on the Mayor or City Clerk within three (3) working days after the adoption of the assessment and filing notice with the court within ten (10) days after such appeal to the Mayor or the City Clerk. The notice of the assessment hearing must be published in the legal newspaper at least once, not less than two (2) weeks prior to the hearing. 7. The City Clerk must mail notice of the assessment hearing to the owner of each parcel described in the assessment roll at least two (2) weeks prior to the hearing. The mailed notice must also include, in addition to the information required to be in the published notice, the following information: 1. The amount to be specially assessed against that particular lot, piece or parcel of land; 2. The right of the property owner to prepay the entire assessment and the person to whom prepaYments must be made; 3. Whether partial prepaYment of the assessment has been authorized by ordinance; 4. The time within which prepaYment may be made without the assessment of interest; and . 5. The rate of interest to accrue if the assessment is not prepaid within the required time period. i. Adoptinq the Assessments At the assessment hearing or at any adjournment thereof, the City Council may adopt the assessments as proposed or adopt the assessments with amendments. If the adopted assessment differs from the proposed assessment, the clerk must mail the owner a notice stating the amount of the adopted assessment. The adopted assessment roll shall include any and all deferments on large or unplatted parcels of land along the City's street system. j . Transmitting Assessment to County Auditor . After the adoption of the assessment, the City Clerk must transmit a certified duplicate copy of the assessment roll, including all deferred equivalent residential units, to the County Auditor. Subd. 5 - SPECIAL ASSESSMENT POLICIES It is the policy of the City of Shorewood that all properties shall pay their fair share of the cost of local improvements as they benefit. It is not intended that any property shall receive the benefits of improvements without paying for them. These policies relate to street reconstruction projects. a. Establishing an Annual Rate An annual assessment rate shall be established by the end of February by City Council Resolution upon 8. . b. . recommendation of the City Engineer. The City Engineer shall undertake a study to determine the per foot project cost of a "typical" 24 foot, rural cross section street (with no curb and'gutter), in the metropolitan area, adjusted for typical Shorewood soil conditions (see following page). When determining an annual rate with construction costs of the previous construction season the construction cost index as published by the "Engineering News Record" or consumer price index may be used. When the City determines that a street should be reconstructed it would be rebuilt to its current width. Current width could be adjusted by the City Council upon request of the property owners or by the Council following public hearing if traffic counts or safety considerations suggest wider street is warranted. Assessable Street Reconstruction proiects ~ Street reconstruction projects are not likely to require the same amount of work throughout the entire length of the project. That is, some sections may need to be fully excavated and back-filled while other sections may need simple reshaping. It is the policy of the city that a project is assessable when its aggregate cost is estimated to be at least 150% of a simple 2 inch overlay project. c. Project Costs Project cost shall include, but not be limited to, the following: 1. Total Construction cost including intersections 2. Engineering fees 3. Administrative fees 4. Right-of-way/easement acquisition/condemnation costs 5. Legal fees 6. Fiscal Fees 7. Capitalized interest d. Term of Assessment Assessments for street reconstruction should be assessed for a ten (10) year period unless the City Council determines that some other period of time is more appropriate. 9. e. Government Owned Properties Properties belonging to government jurisdictions, including the City, will be assessed the same as privately owned property. f. Non-developable Land Special Assessments shall not be levied on properties deemed unbuildable due to the existence of undeveloped lands lying wholly and completely within zoned wetlands, flood plains, DNR protected wetlands and/or having restricted soils as determined by the City Building Inspector. However, all parcels of land are assumed to be buildable until proven otherwise by the owner. g. Interest Rate The interest rate charged on assessments for all projects financed by debt issuance shall not exceed two percent (2%) of the net interest rate of the bond issue. This is necessary in order to insure adequate cash flow when the City is unable to reinvest assessment prepaYments at an interest rate sufficient to meet the interest cost of debt or when the City experiences problems of paYment collection delinquencies. In the event no bonds are issued then the rate of interest on assessments shall not exceed two (2) percent greater than the average rate of interest on all bonds issued in the previous calendar year or the current market municipal bond rate. Interest on initial special assessment installments shall begin to accrue from the date of the resolution adopting the assessment. Owners must be notified by mail of any changes adopted by the City Council regarding interest rates or prepaYment requirements which differ from those contained in the notice of the proposed assessment. h. PaYment Procedures The property owner has four available options when considering paYment of assessments: 1. Tax PaYment - If no action is undertaken by the property owner, then special assessment installments will appear annually on the individual's property tax statement for the duration of the assessment term. 2. Full PaYment - No interest will be charged if the entire assessment is paid within 30 days of the date of adoption of the assessment roll. In the initial year, the property owner may at any time between that date and November 15, prepay the 10. . . . . balance of the assessment with interest accrued to December 31 of that year. 3. Partial PaYment - The property owner has a one-time opportunity to make a partial paYment reduction of any amount against his@her assessment. This option may only be exercised within the 30-day period immediately following adoption of the assessment roll. 4. PrepaYment - The property owner may, with the exception of the current year's installment of principal and interest, pay the remaining assessment balance at any time, prior to November 15 without further interest charges. Thereafter, the next installment, with interest through December 31 of the following year, will be levied for collection with the real estate taxes payable the ensuing year. The principal balance will be reduced by the amount of the installment. i. A~peal Procedures No appeal may be taken as to the amount of any assessment adopted unless a written objection signed by the affected property owner is filed with the City Administrator's office prior to the assessment hearing or presented to the presiding officer at the hearing. The property owner may appeal an assessment to District Court by serving notice of the appeal upon the Mayor or City Administrator within 30 days after the adoption of the assessment and filing such notice with the District Court within 10 days after service of the appeal upon the Mayor or City Administrator. j . Reapportionment Upon Land Division When a tract of land against which a special assessment has been levied is subsequently divided or subdivided by plat or otherwise, the City Council may, on application of the owner of any part of the tract or on its own motion, equitably apportion among the various lots or parcels in the tract all the installments of the assessment against the tract remaining unpaid and not then due if it determines that such apportionment will not materially impair collection of the unpaid balance of the original assessment against the tract. The City Council may require furnishing of a satisfactory surety bond in certain cases as specified in Minnesota Statutes Section 429.071, subd. 3. Notice of the apportionment and of the right to appeal shall be mailed to or personally served upon all owners of any part of the tract. In most cases, dividing the assessment balance evenly on a unit or lot basis would result in an 11. equitable apportionment. If equitable in a particular case, such a procedure would be most practical and administratively effective. Subd. 6 - ASSESSMENT METHOD Once an assessment rate has been established for the year, that rate will be utilized for each project, no matter the width, design, or type of street being reconstructed. The City Council may utilize one of two methods of assessment for each project, "unit" or "front foot." The City Engineer shall recommend the method and prepare the proposed assessment roll based upon which method results in the most fair and equitable assessment roll for that project. The unit method is to be utilized when the front footage of the assessable properties are of relatively equal length or the benefit to the properties is similar. The front footage method is to be utilized when there is a significant . differential in the front footage, or benefit, of the assessable properties. a. Uni t Method The unit method of assessment is most commonly used when the benefitting properties are of similar benefit, but not necessarily similar geometry. For instance, road reconstruction along a particular road will likely benefit the several properties on a private drive as much as it benefits those properties directly abutting the road being improved. In such a case, simply assessing the abutting front footage would not be equitable. A unit assessment shall be derived according to the following formula: Annual assessment rate X project length X 0.33 / number of assessable units. . The number of assessment units assigned to each parcel of land within the assessment area shall be equal to the maximum number of potential lots which could be possible on that parcel as determined by the City Planner. A lot shall be defined in accordance with the City's Zoning Ordinance. Corner lots shall typically have one-half (0.5) of its assessable units applied to each street. However, the entire number of assessable units can be assessed in conjunction with the street improvement project done first. This approach would normally be taken where a single lot derives a majority of benefit from the reconstruction of the first project due to lot, driveway, and home location. 12. b. Front Footage Method The actual physical dimensions of a parcel abutting a street reconstruction project shall NOT be construed as the frontage utilized to calculate the assessment for a particular parcel. Rather, an "adjusted front footage" will be determined. The front footage assessment rate shall be derived according to the following formula: Annual assessment rate X project length X .33 / total adjusted front footage. . The purpose of this method is to equalize assessment calculations for lots of similar size. Individual parcels by their very nature differ considerably in shape and area. The following procedures will apply when calculating adjusted front footage. The selection of the appropriate procedure will be determined by the specific configuration of the parcel. All measurements will be scaled from available plat and section maps and will be rounded down to the nearest foot dimension with any excess fraction deleted. Categorical type descriptions are as follows: . 1. Standard Lots 6. Irregularly Shaped Lots 2. Rectangular Variation Lots 7. Corner Lots 3. Triangular Lots 8. Flag Lots and Back Lots 4. Cul-de-sac Lots 9. Double Frontage Lots 5. Curved Lots The ultimate objective of these procedures is to arrive at a fair and equitable distribution of cost whereby consideration is given to lot size and all parcels are comparably assessed. 13. Subd. 7 - DEFERRED ASSESSMENTS a. The City Council may defer Special Assessments: 1. On portions of large tracts of land as allowed in this chapter so as to minimize the influence of the proposed improvement on the development of said land. 2. On homestead property owned by a person who qualifies under the hardship criteria set forth below. . b. Procedure The property owner shall make application for deferred payment of special assessments on a form prescribed by the Hennepin County Auditor and supplemented by the Shorewood City Administrator. The application shall be made within 30 days after the adoption of the assessment roll by the City Council and shall be renewed each year upon the filing of a similar application no later than September 30. The City Administrator shall establish a case number for each application; review the application for complete information and details and make a recommendation to the City Council to either approve or disapprove the application for deferment. The City Council by majority vote, shall either grant or deny the deferment and if the deferment is granted, the City Council may require the payment of interest due each year. Renewal applications will be approved by the City Administrator for those cases whereby the original conditions for qualifications remain substantially unchanged. If the City Council grants the deferment, the City Administrator sham notify the County Auditor who shall in accordance with Minnesota Statutes, Section 435.194, record a notice of the deferment with the>County Recorder setting forth the amount of assessment. Interest shall be charged on any assessment deferred pursuant to this Section at a rate equal to the rate charged on other assessments for the particular public improvement projects the assessment is financing. If the City Council grants an assessment deferral to an applicant, the interest may also be deferred, or the interest may be due and payable on a yearly basis up until the assessment period terminates and only the principal is deferred. The decision as to whether the principal and interest or just the principal is deferred is decided by the City Council when considering the application. 14. . . . . 1. Larqe Tracts of Land Upon application, the City Council may defer the assessments on large tracts of land that may be subdivided or developed in the future. It is the intent of this policy to grant deferments of special assessments to large tracts so as to minimize the influence of the proposed improvement on the premature development of said land. The deferment granted pursuant to this section may be of indefinite duration subject to the occurrence of: o The subdivision of the property resulting in the creation of a new, buildable lot o If the City Council determines there is no continuing need for the deferment 2 . Conditions of Hardship a) Any applicant must be 65 years of age, or older, or retired by reason of permanent and/or total disability and must own a legal or equitable interest in the property applied for which must be the homestead of the applicant, or b) The annual gross income of the applicant shall not be in excess of the very low income limits (50% of median) asset forth by family size in Hennepin County's Section Eight guidelines. Calculation of the total family income shall be determined by the summation of all available income sources of the applicant and spouse. Income specified in the application should be the income of the year proceeding the year in which the application is made, or the average income of the three years prior to the year in which the application is made, whichever is less, and, c) The special assessments to be deferred exceed $1,000.00. d) Permanent and/or total disability shall be determined by using the criteria established for "permanent and total disability" for Workman's Compensation, to wit: 1) The total and permanent loss of the sight of both eyes. 2) The loss of both arms at the shoulder. 15. 3) The loss of both legs so close to the hips that no effective artificial members can be used. 4) Complete and permanent paralysis. 5) Total and permanent loss of mental faculties. 6) Any other injury which totally incapacitates the owner from working at an occupation which brings him/her an income. An applicant must substantiate the retirement by reason of permanent and/or total disability by providing a sworn affidavit by a licensed medical doctor attesting that the applicant is unable to be . gainfully employed because of a permanent and/or total disability. Section 3. This Ordinance shall be in full force and effect from and after its passage and publication. ADOPTED BY THE CITY COUNCIL of the City of Shorewood, Minnesota this day of , 1993. Barbara Brancel, Mayor ATTEST: . James C. Hurm, City Administrator/Clerk TJK:AK5 16. CK NO TO WHOM ISSUED CHECK APPROVAL LISTING FOR MAY 10, 1993 COUNCIL MEETING PURPOSE AMOUNT CHECKS ISSUED SINCE APRIL 20, 1993 11376 11377 11378 11379 11380 11381 11382 11383 11384 11385 11386 11387 .1388 WJ.389 11390 11391 11392 11393 11394 11395 11396 11397 11398 11399 11400 11401 11402 11403 11404 A1405 .1406 11407 11408 11409 11410 11411 11412 11413 11414 11415 11416 11417 11418 11419 11420 11421 11422 11423 11424 (G) (G) (G) (G) (G) (G) (G) (L) (G) (G) (G) (G) (G) (G) (G) (L) (L) (L) (L) (1;..) (L) (L) (L) (G) (G) (G) (G) (G) (G) (G) (L) (L) (L) (L) (L) (L) (L) (G.) (G) (G) (G) (G) (G) (G) (G) (G) Void First State Bank Commiss of Revenue Pera ICMA Retirement Trust City cty Credit Union Child Suppt Enforcemt Anoka cty supt/Collectn Commiss of Revenue Wendy Davis Finaserve, Inc. Cellular Telephone Co. State of Minnesota Bradley Nielsen Joseph Pazandak Pepsi-Cola Co. Bellboy Corporation Griggs, Cooper and Co. Honeywell Protection Johnson Brothers Liquor Mn Victoria Oil Co. Ed Phillips and Sons Quality Wine/Spirits Commiss of Revenue City of Tonka Bay Void Phyllis Lovrien Cellular Telephone Co. Minnegasco, Inc. Northern States Power Alan Rolek US West Communications Bellboy Corporation Griggs, Cooper and Co. Johnson Brothers Liquor Harry Niemela Ed Phillips and Sons Quality Wine/Spirits Ryan Properties, Inc. Internal Revenue Svc Alan Rolek U.S. Postmaster Void First state Bank commiss of Revenue Pera ICMA Retirement Trust City cty Credit Union AFSCME Local #224 CONTINUED NEXT PAGE Payroll deductions Payroll deductions Payroll deductions Payroll deductions Payroll deductions Payroll deductions Payroll deductions March sales tax Sec 125 reimbursement/mileage Gasoline purchases Cellular phone air time Truck inspectn stickers Sec 125 reimbursement Mileage/supplies Pop machine rental Liquor purchases Liquor,wine,misc purch Security system Wine purchases Fuel oil Liquor and wine purchases Liquor and wine purchases Sales tax interest Fence permit Release of escrow Cellular phone air time utilities Utilities Airfare reimb-conference Telephone services Liquor purchases Liquor,wine,misc purch Wine purchases May rent-store I Liquor and wine purchases Liquor and wine purchases May rent for store II Payroll deductions Mileage/expense reimb. Postage for water meter cards Payroll deductions Payroll deductions Payroll deductions Payroll deductions Payroll deductions Payroll deductions -1- 5,906.42 986.84 2,035.63 641. 57 320.00 87.50 110.59 8,421.25 194.60 315.50 10.92 16.00 240.00 123.27 10.65 1,235.72 2,111. 54 90.00 2,052.89 130.50 1,787.26 1,333.62 1. 03 16.50 1,000.00 126.75 891. 90 554.47 386.23 839.25 1,661. 77 6,380.62 3,406.49 1,664.00 2,180.11 1,958.68 2,400.00 129.66 213.44 202.47 5,975.38 994.21 2,072.87 641. 57 320.00 134.40 CHECK APPROVAL LISTING FOR MAY 10, 1993 COUNCIL MEETING CK NO TO WHOM ISSUED PURPOSE AMOUNT CHECKS ISSUED SINCE APRIL 20. 1993 11425 (G) Child Suppt Enforcmt Payroll deductions 92.50 11426 (G) Anoka cty Spt/Collctn Payroll deductions 126.50 11427 (G) Pera Payroll deductions 25.00 11428 (G) Wendy Davis Sec 125 reimbursement 140.00 11429 (G) James Hurm Sec 125/mileage/exp reimb 299.43 11430 (G) Braldey Nielsen Sec 125 riembursement 140.00 11431 (G) Joseph Pazandak Sec 125/mileage/supplies 262.01 TOTAL GENERAL 26,584.03 . TOTAL LIQUOR 36.815.48 TOTAL CHECKS ISSUED 63.399.51 . -2- CHECK APPROVAL LISTING FOR MAY 10, 1993 COUNCIL MEETING CK NO TO WHOM ISSUED PURPOSE AMOUNT CHECKS FOR COUNCIL APPROVAL Void Albinson Anchor Paper Co. Androc Products Aspen Publishers Boyer Truck Parts Circuit Research Corp Cleveland Cotton Prod. Crosstown, OCS City of Excelsior Hance Hardware HC Mayer and Sons, Inc. Henn cty Treasurer Henn cty Treasurer Henn cty Treasurer Internatl Office Systems Jim Hatch Sales Mn Sun Publications Power Brake/Equipment Safety-Kleen Time Saver Off site Sec City of Tonka Bay Visu-Sewer Clean/Seal Wagers, Inc. Zack's Incorporated 11432 11433 11434 11435 11436 11437 11438 11439 11440 11441 11442 11443 AL1444 "1445 11446 11447 11448 11449 11450 11451 11452 11453 11454 11455 11456 Planning supplies Copy paper-office supplies Parks-herbicide Subscription renewal Truck maint supplies Water testing Engine de-greaser City hall coffee supplies 1st qtr water 4" pvc cap-pking lot proj Anitfreeze March prisoner expense County postage Property taxes Fax machine maint contract Hard hat suspenders Publishing Truck maint supplies Training manuals Minutes 1st qtr wtrjswr/st drainage Televise swr line-SW Oaks Typewriter repair Cleaning supplies-pw 10.54 412.05 886.79 105.43 78.32 50.00 117.44 94.00 2,043.95 9.04 138.23 295.50 119.83 2,513.31 99.00 42.87 159.12 54.66 21. 30 187.50 465.07 540.00 69.61 108.48 8.622.04 TOTAL CHECKS FOR APPROVAL . TOTAL CHECK APPROVAL LIST 72.021. 55 -3- CHECK APPROVAL LISTING FOR MAY 10, 1993 COUNCIL MEETING CK NO TO WHOM ISSUED HOURS AMOUNT CHECK REGISTER FOR APRIL 20, 1993 PAYROLL 207253 Void 207254 (L) Scott Bartlett 28.0 reg hours 159.42 207255 (G) Charles Davis 80.0 reg hours 589.64 207256 (G) Wendy Davis 80.0 reg hours-6.5 ot 840.41 207257 (L) Cory Frederick 57.0 reg hours 248.21 207258 (L) John Fruth 13.0 reg hours 73.16 207259 (G) Patricia Helgesen 80.0 reg hours 633.06 207260 (G) James Hurm 80.0 reg hours 1,540.97 207261 (L) Brian Jakel 37.5 reg hours 199.66 207262 (G) Dennis Johnson 76.0 reg hours 738.64 207263 (L) Loren Jones 4.0 reg hours 20.87 207264 (L) Martin Jones 25.0 reg hours 110.44 207265 (L) William Josephson 80.0 reg hours 630.22. 207266 (L) Mark Karsten 26.0 reg hours 142.16 207267 (L) Sandra Klomps 8.5 reg hours 44.35 207268 (G) Mary Beth Knopik 44.0 reg hours 232.67 207269 (G) Irene Kronholm 26.0 reg hours 120.05 207270 (G) Anne Latter 80.0 reg hours 859.35 207271 (L) Susan Latterner 14.75 reg hours 81.23 207272 (G) Colleen Lindskoog 38.0 reg hours 210.49 207273 (G) Joseph Lugowski 80.0 reg hours 754.37 207274 (L) Russell Marron 28.0 reg hours 154.39 207275 (G) Lawrence Niccum 80.0 reg hours 804.07 207276 (G) Susan Niccum 80.0 reg hours 702.25 207277 (G) Bradley Nielsen 80.0 reg hours 953.51 207278 (G) Joseph Pazandak 80.0 reg hours 1,033.73 207279 (G) Daniel Randall 80.0 reg hours 785.94 207280 (L) Brian Roerick 4.5 reg hours 25.98 207281 (G) Alan Rolek 80.0 reg hours 1,225.31 207282 (L) Brian Rosenberger 35.5 reg hours 184.73. 207283 (L) Christopher Schmid 80.0 reg hours 404.27 207284 (G) Howard Stark 80.0 reg hours 665.90 207285 (G) Beverly Von Feldt 80.0 reg hours 579.76 207286 (G) Ralph Wehle 80.0 reg hours 634.17 207287 (L) Dean Young 80.0 reg hours 614.44 207288 (G) Donald Zdrazil 80.0 reg hours 1.189.46 TOTAL GENERAL 15,093.75 TOTAL LIQUOR 3.093.53 TOTAL PAYROLL 18.187.28 -4- CHECK APPROVAL LISTING FOR MAY 10, 1993 COUNCIL MEETING CK NO TO WHOM ISSUED HOURS AMOUNT CHECK REGISTER FOR MAY 4. 1993 PAYROLL 207289 Void 207290 (L) Scott Bartlett 19.0 reg hours 109.67 207291 Void 207292 (G) Wendy Davis 80.0 reg hours 720.16 207293 (L) Cory Frederick 43.5 reg hours 193.60 207294 (L) John Fruth 19.0 reg hours 102.29 207295 (G) Patricia Helgesen 80.0 reg hours 633.06 207296 (G) James Hurm 80.0 reg hours 1,540.97 207297 (L) Brian Jakel 34.25 reg hours 185.51 207298 (G) Dennis Johnson 77.0 reg hours 728.62 207299 (L) Loren Jones 13.5 reg hours 68.86 207300 (L) Martin Jones 9.0 reg hours 26.96 _07301 (L) William Josephson 80.0 reg hours 630.22 07302 (L) Mark Karsten 39.25 reg hours 203.26 207303 (L) Sandra Klomps 8.25 reg hours 43.04 207304 (G) Anne Latter 80.0 reg hours 859.35 207305 (L) Susan Latterner 38.0 reg hours 204.17 207306 (G) Colleen Lindskoog 16.25 reg hours 76.27 207307 (G) Joseph Lugowski 80.0 reg hours 735.17 207308 (L) Russell Marron 28.0 reg hours 154.39 207309 (G) Lawrence Niccum 80.0 reg hours 784.87 207310 (G) Susan Niccum 80.0 reg hours 702.26 203311 (G) Bradley Nielsen 80.0 reg hours 953.52 207312 (G) Joseph Pazandak 80.0 reg hours 1,033.73 207313 (G) Daniel Randall 80.0 reg hours 766.74 207314 (L) Brian Roerick 14.5 reg hours 81. 26 207315 (G) Alan Rolek 80.0 reg hours 1,225.31 207316 (L) Brian Rosenberger 33.0 reg hours 173.59 207317 Void .07318 (G) Howard Stark 82.0 reg hours-3.5 ot 712.03 07319 (G) Beverly Von Feldt 80.0 reg hours 579.75 207320 (G) Ralph Wehle 80.0 reg hours 614.97 207321 (L) Dean Young 80.0 reg hours 614.44 207322 (G) Donald Zdrazil 80.0 reg hours 1,189.46 207323 (G) Charles Davis 80.0 reg hours 565.44 207324 (L) Christopher Schmid 80.0 reg hours 388.36 TOTAL GENERAL 14,421.68 TOTAL LIQUOR 3.179.62 TOTAL PAYROLL 17.601.30 -5- CHECK APPROVAL LISTING FOR MAY 10, 1993 COUNCIL MEETING CK NO TO WHOM ISSUED HOURS CHECK REGISTER FOR MAY 3. 1993 PAYROLL 207325 Void 207326 Bruce Benson Council 207327 Barbara Brancel Mayor 207328 Robert Daugherty Council 207329 Daniel Lewis Council .207330 Kristi Stover Council AMOUNT 184.70 233.87 184.70 184.70 184.70 TOTAL PAYROLL 972.67 . -6- . ~ . ... MAYOR Barb Brancel COUNCI L Kristi Stover Rob Daugherty Daniel Lewis Bruce Benson CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927 · (612) 474-3236 FROM: James C. Hurm, City Administrator MEMO TO: Mayor and city council DATE: April 21, 1993 RE: Work Session Item 1B - Badaer/Woodhaven Wells The attachment is a cost analysis for the BadgerjWoodhaven well systems for the year 1992. Badqer Well There are three obvious al ternati ves : 1) leave as a separate Shorewood water system; 2) hook the system up to the Tonka Bay water system; 3) hook the system up to the Excelsior water system. The cost analysis indicates that Shorewood currently loses about $2,500 on the Badger system per year. We are facing future well repairs and a cost of approxiately $25,000 replacing the building which houses the well. To hook up to the Tonka Bay system we would literally have to only turn a valve. There would be a cost of approximately $7,000 for well abandonment or if our well were kept there would be the costs of building a new house for it and running the motor several times duriing the year. To hook up to the Excelsior system approximately 1,'000 feet of 8 inch water main would have to be installed along with hydrants, valves, and pavement restoration. The cost estimate is approximately $42,200. An additional $7,000 for well abandonment would increase the cost to $49,200. Cost analysis indicates it would take approximately 10 years to reach a break-even point. Work Session 1B A Residential Community on Lake Minnetonka's South Shore " Memo to Mayor and City Council - April 21, 1993 Badger/Woodhaven Wells Page Two Woodhaven Well These memorandums will be explained by staff and discussed by the city' Council Monday evening. JCH.al Attachment ~ APRIL 20, 1993 city of Shorewood BadgerjWoodhaven Well Cost Analysis For the Year 1992 Badger Woodhaven Revenue Water Sales Pro-rata Interest Water Connection Fees 5,458 234 20,000 4,911 211 -0- Total Revenue 25,692 5,122 Expenses Well Utilities Pro-rata Common Expenses (Personnel, supplies, depreciation) Total Expenses 3,068 5,056 1,390 4,562 8,124 5,952 Net Revenue/Expense 17,568 (830) Less: Water Connection Fees (20,000) Net Loss (2,432) (830) Number of Connections 43 25 Future repairs/improvements Repairs to Well Rebuild Well Pump f Approximate improvement cost 25,000 15,000 BREAK EVEN ANALYSIS OF BADGER/WOODHAVEN WELL ABANDONMENT AND CONNECTION TO OTHER WATER SYSTE~ Cost to abandon well and connect to City of Excelsior water system Less: Future repairs* 49,200 (25,000) 48,800 (15,000) Excess cost to abandon Divided by annual net loss 24,200 2,432 33,800 830 Number of years to break even** 9.95 40.72 * NORMAL MAINTENANCE & REPAIR COSTS ALREADY FACTORED INTO NET REVENUE/EXPENSE ** MAY DIFFER IF CONNECTION IS MADE TO OTHER MUNICIPAL WATER SYSTEMS, IE. TONKA BAY OR CHANHASSAN. BADGER WELL IS ALREADY INTERCONNECTED WITH TONKA BAY SYSTEM . t ! ' . I I i ~ DATE May 10 May 24 June 14 June 28 July 12 July 26 August 9 August 23 September 13 September 27 October 11 October 25 November 8 November 22 JCH.al 4/21/93 5/5/93 TENTATIVE SCHEDUIE OF CITY COUNCIL WORK SESSIONS Held in Round Table Format Following the Regular City Council Meetings TOPIC OF DISCUSSION Badger /W oodhaven Wells - Special Assessment Ordinance Budget Objective Report on 1993 - Preliminary Review for 1994 *Joint Meeting with Planning Commission - Transportation (Comp Plan) Review Garbage Collection Alternatives Water Policy Questions - New Developments Initiate labor Negotiations Capital Improvement Plan Operating Budget * Joint Meeting with Planning Commission - Community Facilities (Camp Plan) Capital Improvement Plan *Joint Meeting with Planning Commission - Land Use/Natural Resources (Comp Plan) MAYOR Barb Brancel COUNCI L Kristi Stover Rob Daugherty Daniel Lewis Bruce Benson . CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD · SHOREWOOD, MINNESOTA 55331-8927 . (612) 474-3236 FROM: James C. Hurm, City Administrator . MEMO TO: Mayor and City Council DATE: May 3, 1993 RE: Work Session - CIP Review on Park Financing The attached material is from our 1993 - 1997 Capital Improvement Program (CIP) document. We will review each fund and update you on each fund activity through the first quarter of this year. Through this review you should be able to determine if there are fund balances available which you would like to earmark for park improvements. . JCH.al Attachments WORK SESSION NO. 1B A Residential Community on Lake Minnetonka's South Shore REVISED PARK IMPROVEMENT PLAN APRIL 13, 1993 1993 1994 1995 1996 1997 \ PREVIOUS BAlANCE .0- 9,600 600 . 1,600 4,000 J REVENUES PARK FUND 525,000 522,500 $22,500 $17,500 $17,500 GENERAL FUND 50,000 50,000 50,000 50,000 50,000 . SALE OF PROPERTY 25,000 DONATIONS 25,000 35,000 TOTAL 125,000 107,500 72,500 67,500 67,500 BADGER PIA YGROUND EQUIPMENT 10,000 10,000. . TRAIL 2,500 PICNIC AREA 2,500 CATIiCART RELOCATE BALLFIELD 22,000 PLAYGROUND EQUIPMENT 20,000 PARKING LOT 12,000 MANOR ') SHELTER BUILDING 25,000 /' PLAYGROUND EQUIPMENT 20,000 PICNIC AREA 2,500 LANDSCAPING 5,000 5,000 PARKING REFURBISH 5,000 SILVERWOOD . TENNIS/BASKETBALL CRTS 38,400 PICNIC FACILmES 2,500 lANDSCAPING 6,000 5,000 SLIDING HILL 1,000 PIA YGROUND EQUIPMENT 20,000 TRAIL TO POND 4,000 FREEMAN BUILDING NORTIi 15,Ooo(D) BUILDING SOUTII 15,000 (D) SHELTER-family area 12,500 PLAYGROUND NORTIi 20,000. PLAYGROUND SOUTIi 20,000. VOLLEYBALL COURT 5,000 PICNIC AREA 5,000 PREPARE FAMILY AREA 25,000 5,000 LANDSCAPING 11,000 El\1'fRANCE & SIGN 5,600 SIGNAGE 5,000 TENNIS COURTS (3) 64,000 DRINKING FOUNTAINS (2) 11,000 .- TOTAL EXPENSES 115,400 116,500 71,500 65,100 69,000 YEAR END BALANCE 9,600 600 1,600 4,000 2,500 D = Donated . = $10,000 donated C:\PCIP\PKPLNALT.928 4/14/93 al ill CAPITAL FINAJ.'fCE PLAN This portion of the Capital Improvement Program traces the affect of the scheduled projects on the various funds of the City and on the direct propet'o/ ta.'t levy for those projeC'.s. !he City recogniz::s the importance. o~ maintaining a reasonable funding level for public unprovements, eqUlpment, and depreClanon of current City assets. Therefore this eIP projects :m increase of between 3 to 4 percent annually in general revenues allocated for c:tpital unprovements. The first chart of the Funding Source Summary projects the property tax levy for c:tpital improvements through 1997 and identifies expenditures by type of improvement. T.ae Olpital Reserve Fund Chart summarizes all capital anticipated revenues and expenditures. Each functional area summarized here is explained in. detail in the remaining charts. .ntaining a reasonable Capital Reserve ~d balance is an essential ele~ent in the financial stability of the City. It can be an important factor in maintaining and improving our good bond rating. Such a reserve can serve as a sound financial resource. It can serve as a depreciation fund for City Assets. In addition, it can allow for short term or mterim internal borrowing for projec+..s or equipment. This can reduce the cost of borrowing by allowing for combined bond sales at the most advantageous time. Each of the remaining charts in this section projects the affect of expenditures planned in this document on the various capital funds. .Anticipated revenues, including interest income, are also included. Therefore, the net affect on the various capital funds is reflected in the projected year-end fund balances. The chart on anticipated special assessment collections is based on the . anticipated adoption of the Street Reconstruction Financing Task Force recommendations. The o~ctive is to bUild a fund balance which can be used to supplement ta.\: levy effort in the future .ore streets need reconstruction. The last portion of the Capital Finance Plan is a proposed 1993 Capital Improvement Budget. It adopts, as a budget, the projects identified in this document for the year 1993 and authorizes > purchases and preliminary project expenses up to and including a feasibility study for those projeCts pending Counc;iJ approval of appropriate agreements. This budget needs to be adopted by the City Council in an action separate from acceptmce of this plan. 28 .- i 1 J t l~ CITY OF SHOREWOOD CdPITAL IMPROVEMENT PROJ'Ecr SCHEDU!.Z ':'Y?=: PROJEcr/PURPOSE , j PROJEcr FUNDING AHOUN'!. AMOUNT SOURCZ PER SOtffi ---------------~--------------~------------------------------------------------------------- WA'l'ZR 1993 MAIN FROM 'l'H 7 '1'0 OLD EXCZLSIOR BLVD VARIABLE SPEED POMP CONTROL, AMESBURY OVERUY PROJECTS RECONSTRUCTION PROJECTS - LOCA!. - STRAWBERRY !ANE - PLEASANT AVE. - MSA PROJECTS (1/2 MILE) STREETS DRAINAGE 'l'H 7 '1'0 OLD EXCZLSIOR BLVD SANITARY SEWER ?UBLIC FACILITIES =:QUIPMENT REHABILITATION OF 2 LIFT STATIONS RECONSTRUCT CITY HALL LOT BADGER WELL BUILDING REPLACZ 1978 FORD FLATBED REPLACZ 1988 TORO GROUNOSMASTER TRACTOR - BADGER PLAYGROUND EQUIPMENT PICNIC AREA LANDSCAPING - CATHCART RELOCATE BALLFIELD PLAYGROUND EQUIPMENT PARKING LOT LANDSCAPING ELECTRICA!. WORK - MANOR SHELTER BUILDING PLAYGROUND EQUIPMENT PAVE PARKING LOT ELECTRICA!. WORK PICNIC AREA - SILVERWOOD TENNIS/BASKETBALL COURTS PICNIC FACILITIES SLIDING HILL PLAYGROUND EQUIPMENT ELECTRICi\I. WORK WATER AND FOUNTAIN - FREEMAN PLAYGROUND, NORTH PLAYGROUND, SOUTH PICNIC AREA HOCKEY RINK DRINKING FOUNTAINS SANITARY SEWER WATER MAIN ENTRANCZS/LOTS/ROAD PREPARATION VOLLEYBALL COURT HOC:<EY LIGHTING SHELTER BUILDING, SOUTH SHELTER BUILDING, FAMILY AREA SHELTER BUILDING, NORTH PAR.t{S SANDBOX TRAIL WORK FUNDING SOURCE KEY 52,000 18,000 80,000 297,000 67,000 360,000 50,000 90,000 75,000 25,000 17,191 16,714 20,000 2,000 7,500 22,000 20,000 20,000 6,000 7,200 25,000 20,000 10,000 7,200 2,000 38,400 2,000 300 20,000 9,000 7,400 23,500 23,500 5,000 10,000 11,000 23,400 18,000 150,000 5)000 25,000 12,500 12,500 25,000 500 40,000 WF WF SR SR SR MSA SR MSA BAL DO DU GF SS CR GR WF ER ER PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PF PR PR PR PR PR PF DO PR DO PF DO PR 52,000 18,000 80,000 297,000 67,000 235,000 35,000 90,000 35,000 10,000 5,000 90,000 . 72,500 2,500 25,000 17,191 16,714 20,000 2,000 7,500 22,000. 20,OO! 20, oc~ 6,000 7,200 25,000 20,000 10,000 7,200 2,000 38,400 . 2,000 300 20,000 9,000 7,400 23,500 23,500 5,000 10,000 11,000 .23,400 18,000 150,000 5,000 25,000 12,500 12,500 12,500 12,500 500 40,000 l " ,/ ER - EQUIPMENT REPLACZMErrT GF - GENERAL FUND GR - GRANTS MSA - MUNIC!PAL STATE AID PF - PARK CAPITA!. FUND PR - PARK REFERENOtrM SA - S?ECIA!. ASSESSMENT SR - STREET RECONS'rR FmlO SS - SANITARY SEWER FmlO WF - WATER FUND F - BORROWED FUNDS ::t - CAPITA!. RESERVE FUND :J - DRAINAGE DISTRICTS o - DONAT::ONS cr - STORM DRAINAGE UTIL FUND 24 CITY OF SHOREWOOD FUNDING SOORCS SUMMARY GENERAL FUND CAPITAL APPROPRIATIONS ----------------------------------- 1993 1994 1995 1996 1997 Street Reconstruction Storm Drainage Equipment Replacement Park Capital Undesig. Capital Reserve --------------------------------------------------- 220,000 230,000 240,000 250,000 260,000 10,000 10,000 10,000 10,000 10,000 90,000 94,500 99,225 104,186 109,396 30,000 0 0 0 0 20,000 50,000 50,000 50,000 50,000 Total General Fund Capital Levy --------------------------------------------------- 370,000 384,500 399,225 414,186 429,396 . A summary of General Fund capital levies is shown above. Capital Levy is budgeted in the General Fund as transfers to the various capital improvement funds. The amount for general capital improvements is increased by 3 to 4% "each year. The' amounts for the Undesignated Capital Reserve are held in the Capital Reserve Fund until specific projects are ordered by the City Council, at which time the appropriated amounts are transfered to the proper capital improvement fund. CAPITAL RESERVE FUND -------------------- 1993 1994 1995 1996 1997 --------------------------------------------------- . Balance, January 1 140,000 176,155 172,463 168,586 164,515 General Fund Contribution 370,000 384,500 399,225 414,186 429,396 Defeasance Funds 22,000 Mrtg Balloon on House Sale 91,600 Transfers: Park Capital (30,000) Equipment Replac (90,000) (94,500) (99,225) (104,186) (109,396) Street Reconstr (220,000) (230,000) (240,000) (250,000) (260,000) Storm Drainage (10,000) (10,000) (10,000) (10,000) (10,000) City Hall Improvements (72,500) Desig. for Park Imps. * (20,000) (50,000) (50,000) (50,000) (50,000) Desig. for Park Trails (15,000) (15,000) (15,000) (15,000) (15,000) Interest Income @ 5% 10,055 11,308 11,123 10,929 10,726 --------------------------------------------------- Undesig. Balance, Dec 31 176,155 172,463 168,586 164,515 160,241 The Capital Reserve Fund is estab1ished as a repository for funds for anticipated future projects which have not been formally ordered by the City Council. These projects include storm drainage, public facilities, and city hall improvement projects, and others as may be identified. Funds are transfered to the proper capital project fund, once established. The expenditures shown are anticipated in the next five years. Undesignated fund balances are allocated to future capital improvement projects as specified by the City Council and may be us~d as identified in the introduction to the capital Finance Plan. * If Park Referendum passes, would be re-allocated. Balance, January 1 Park Dedication Fees General Fund Contribution Donations Park Referendum Bond, net Projects/Expenditures Desig. for contingency Interest Income @ '5% Balance, December 31 CITY OF SaOREWOOD FUND ING SOURC::: SUMMARY '" , PARK CdPITAL FUND ----------------- 1993 1994 1995 1996 1997 ------------------------------------------------- 0 248,563 11,616 9,571 13,725 25,000 22,500 22,500 22,500 17,500 30,000 0 0 0 0 25,500 4,500 7,500 7,500 2,500 816,900 (630,900) (264,500) (32,500) (26,509) (2,500) (24,000) 6,063 553 456 654 1,561 ------------------------------------------------- 248,563 11,616 9,571 13,725 3,2,786 . The Park Capital Improvement Fund is established to finance improvements in the City's park system. Revenues are derived from park dedication fees from land subdivisions within the City, budgeted transfers from the General Fund and donations. Expenditures shown are for improvements funded from these sources. Fund balances will be allocated to future park improvements. A park bond referendum is planned for Spring, 1993 which will fund park projects in 1993 and 1994. Balance, Janu~I 1 General Fund Contribution Sanitary Sewer Fund Purchases/Expenditures Interest Income @ 5% Balance, December 31 EQUIPMENT REPLACEMENT FUND . -------------------------- 1993 1994 1995 1996 1997 . ------------------------------------------------- 81,000 90,000 143,950 94,500 238,785 99,225 135,875 56,647 104,186 109,396 22,750 (208,861)(150,356) 2,697 784 (33,905) 6,855" (11,035)(208,606) 11,371 6,470 ------------------------------------------------- 143,950 238,785 135,875 56,647 16,472 The Equipment Replacement Fund is established to finance the replacement of depreciated public works equipment. Sources of revenue are mainly budgeted transfers from the General Fund. Equipment Debt Certificates maybe sold to cover short-term shortages in fund cash flow. Expenditures amounts are as shown in the Equipment Replacement Schedule. 30 CITY OF SHOREWOOD FUND ING SOURa: SUMMARy STR-k'ET RECONSTRUCTION FUND -------------------------- 1993 1994 1995 ------------------------------------------------- . Balance, January 1 312,000 General Fund Contribution ./ 220,000 Special Assessment Revenue 42,000 Projects/Expenditures (444,000} MSA Project Funding (35,000) Interest Income @ 5\ 3,750 78,750 37,748 230,000 240,000 36,200 47,960 (274,000)(183,000) (35,000) (35,000) 1,798 5,385 1996 1997 113,093 159,509 250,000 260,000 61,820 76,300 (238,000)(260,000) . (35,000) (35,000) 7,596 10,040 Balance, December 31 37,748 113,093 -----------------------------------------------~- 159,509 210,849 78,750 The City budgets funds for the overlaying and reconstruction of local city streets. The Street Reconstruction Fund is established as a reservoir for these funds. A balance of $312,000 of unused funds is carried over from 1992 to 1993. Revenues are budgeted transfers from the General Fund and expenditures are as shown in the Streets & Highways schedule for local streets. Fund balances are allocated to future local street improvements. . MUNICIPAL STATE AID STREET FUND ---------------____________J___ 1993 1994 1995 ------------------------------------------------- Balance, January 1 MSA Contributions Transfer - Street Reconstr. Projects/Expenditures 482,620 235,000 35,000 (360,000) 392,620 302(620 235,000 235,000 35,000 35,000 (360,000) (360,000) 1996 1997 212,620 122,620 235,000 235,000 35,000 35,000 (360,000)(360,000) Balance, December 31 302,620 212,620 ------------------------------------------------- 32,620 392,620 122,620 The State of Minnesota allocates funds to cities over 5,000 in population to improve designated municipal state aid streets. The mileage of city streets designated as MSA streets is according to a ratio established by the State. Annual . allocations for this purpose are made by the S~ate accord~ng to a formula which considers a city's population and its need for funding for MSA streets. It is anticipated that the City's annual MSA allocation for the next five years will be as shown above. Expenditures shown above are as listed in the Municipal State Aid ;ection of the Streets & Highways schedule. " 31 CITY OF SHOREWOOD FUNDING SOORes SUMMARY ANTICIPATED SPECIAL ASSESSMENT COLLECTIONS ------------------------------------------ 1993 1994 1995 1996 1997 Special Assessments Levied Anticipated Prepays (10%) Annual Installments ----------------------------~-------------------- 220,000 22,000 o 164,000 16,400 19,800 134,000 13,400 34,560 152,000 15,200 46,620 160,000 16,000 60,300 Total Annual Collections ------------------------------------------------- 22,000 36,200 47,960 61,820 76,300 It is anticipated that the City Council will adopt the recommendations of the Street Financing Task Force which call for assessing a portion of the cost of street reconstruction for local and MSA streets. The amount assessed for each project would be equal to 1/3 the cost of a 24 foot rural road section. The above matrix shows the anticipated cash flow resulting from the special assessments levied. The annual total is included in the funding of the Street Reconstruction Fund. STORM DRAINAGE UTILITY ---------------------- 1993 1994 1995 1996 1997 ------------------------------------------------- Balance, JanuarI 1 Utility Fee Revenues General Fund Contrib Maintenance Expenditures Project Expenditures Interest Income @ 5% 0 15,375 47,144 22,901 39,746 40,000 40,000 40,000 40,000 40,000 10,000 10,000 10,000 10,000 10,000 (20,000) (20,000) (20,000) (20,000) (20,000) (15,000) 0 (57,600) (15,300) 0 375 1,769 3,357 2,145 2,987 ------------------------------------------------- Balance, December 31 15,375 47,144 22,901 39,746 72,733 The Storm Drainage Utility is established to finance maintenance of the City's storm sewer system, and to fund future drainage projects. Revenues are derived from a utility'charge to' all properties within the City. The City anticipates that 50% of annual revenues will be used to maintain the system, and 50% will be available for drainage projects. The amount shown for projects is as listed on the Storm Drainage Schedule. 32 ./ l . - I, . { .......,... CITY OF SHOREWOOD PLANNING COMMISSION MEETING TUESDAY, APRIL 20, 1993 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:00 P.M. MINUTES CALL TO ORDER Chair Rosenberger called the meeting to order at 7:00 p.m. ROLL CALL Present: Chair Rosenberger; Commissioners Bean, Borken, Hansen, Malam, and Pisula; Planning Director Nielsen and Council Liaison Lewis. Absent: Commissioner Bonach. APPROVAL OF MINUTES Pisula moved, Hansen seconded to approve the minutes of the Commission's April 6, 1993 meeting. Motion passed 6/0. STUDY SESSION 1. COMPREHENSIVE PLAN - REVIEW SCHEDULE Nielsen presented a calendar showing a proposed schedule of dates for regular Commission meetings and for study sessions for the remainder of 1993. The study sessions dates show the Comprehensive Plan topics to be discussed at each session, including Transportation, Community Facilities, Natural Resources and Land Use. Joint sessions with the Council are scheduled for Monday, June 14, and tentatively Monday, September 20, with a final joint session to be scheduled in October or November. Nielsen indicated that four neighborhood meetings and one or two public hearings will be conducted in early 1994. The Commissioners concurred with the schedule as presented. 2. COMPREHENSIVE PLAN - TRANSPORTATION Nielsen indicated that it is anticipated that the final draft of the Transportation Plan incorporating the Commissioners' suggestions will be available for final approval at the May 4 meeting. 1 PLANNING COMMISSION MINUTES APRIL 20, 1993 - PAGE 2 Nielsen referred to documents distributed to the Commissioners: "Transportation Plan" from the current Policy Plan/Development Framework, Report No.4 of the Comp Plan, and "Report No.8, Transportation Plan," a detailed facility plan for transportation and indicated that the two documents will be merged into one Chapter of the updated Comp Plan. He noted that the "Trail Plan" dated November 1991, also distributed to the Commissioners, has been recommended by the Park Commission. The Commissioners discussed with Nielsen the following items included in the ''Transportation Plan - Chapter Outline," dated April 1993: I. Introduction; II. Streets- Functional Classification System; III. Streets - Plans; IV. Mass Transit; and V. Trail Plan. Hansen agreed to continue to investigate issues related to Mass Transit. The Commissioners agreed to invite the Park Commissioners to a joint meeting on May 18 to discuss matters of mutual concern. 1. .. 3. MATTERS FROM THE FLOOR - None. 4. REPORTS Councilmember Lewis reviewed actions taken by the Council at its April 12, 1993 meeting. The Commissioners briefly discussed with Lewis the proposed Street Assessment Policy. ,. , 'Hansen requested that the staff provide information regarding the tax amount paid by Shorewood for mass transit. 5. ADJOURNMENT Bean moved, Borkon seconded to adjourn the meeting at 8:40 p.m. Motion passed 6/0. RESPECTFULLY SUBMITTED, Arlene H. Bergfalk Recording Secretary TimeSaver Off Site Secretarial 2 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, JMlNNESOTA COMPREHEl\lSI~ ANNUAL FINANCIAL impORT' FOR THE YEAR ENDED DECEMBER~31, 1992 " JAMES C. HURM, CITY ADMINISTllATOR REPORTPREPARED BY: DEPARTMENT OF FINANCE ALAN J. ROLEK, FINANCEDIRECTORlTREASURER MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STAD;$ AND. CANADA I CITY OF SHOREWOOD, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 1992 I I I. INTRODUCTORY SECTION I Elected and Appointed Officials Organizational Chart Letter of Transmittal II. FINANCIAL SECTION I Independent Auditor's Report General Purpose Financial Statements I Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types Notes to Financial Statements I I I I Combininq and Individual Fund and Account Group Financial Statements and Schedules I General Fund Comparative Balance Sheet Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual I Debt Service Funds Combining Balance Sheet Combining Statement of Revenue, Expenditures and Changes in Fund Balance I Capital Projects Funds Combining Balance Sheet Combining Statement of Revenue, Expenditures and Changes in Fund Balance I Enterprise Funds Combining Balance Sheet Combining Statement of Revenue, Expenses and Changes in Retained Earnings Combining Statement of Cash Flows I I Water Fund Comparative Balance Sheet Comparative Statement of Revenue, Expenses and Changes in Retained Earnings Comparative Statement of Cash Flows I Sewer Fund Comparative Balance Sheet Comparative Statement of Revenue, Expenses and Changes in Retained Earnings Comparative Statement of Cash Flows I I Exhibit 1 2 3 4 5 A-I A-2 B-1 B-2 C-1 C-2 D-1 D-2 D-3 0-4 D-5 D-6 D-7 D-8 D-9 Paqe No. I - VIII 2 3 4 5 6 7 - 23 24 25 - 28 29 30 31 32 33 34 35 36 37 38 39 40 41 CITY OF SHOREWOOD, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 1992 Recycling Fund Comparative Balance Sheet Comparative Statement of Revenue, Expenses and Changes in Retained Earnings Comparative Statement of Cash Flows Liquor Fund Comparative Balance Sheet Comparative Statement of Revenue, Expenses and Changes in Retained Earnings Comparative Statement of Cash Flows Agency Funds Statement of Changes in Assets and Liabilities General Fixed Asset Account Group Comparative Schedule of General Fixed Assets - by source Schedule of General Fixed Assets - by function and activity Schedule of Changes in General Fixed Assets - by function General Long-term Debt Account Group Comparative Statement of General Long-term Debt Schedule of Bonds Payable Schedule of Debt Service Requirements III. STATISTICAL SECTION General Fund Expenditures and Other Uses by Function General Fund Revenue and Other Sources by Source Property Tax Levies and Collections Assessed Valuation, Tax Levies and Mill Rates Property Tax Mill Rates/Tax Capacity Rates - Direct and Overlapping Governments Principal Taxpayers Special Assessment Levies and Collections Computation of Legal Debt Margin Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures Computation of Direct and Overlapping Debt Revenue Bond Coverage Property Value, Construction and Bank Deposits Miscellaneous Statistics I I Exhibit Paoe No. 0-10 42 0-11 43 0-12 44 0-13 45 0-14 46 0-15 47 E-1 48 I I I I F-1 49 I F-2 50 I F-3 51 G-1 52 I H-1 53 1-1 I 54 1 2 3 4 I 55 56 57 58 I 5 6 7 8 59 60 61 62 I 9 63 10 11 12 13 14 I 64 65 66 67 68 I I I I I I I I I I I I I I I I I I I I I I I I, CITY OF SHOREWOOD, MINNESOTA . SECTION I INT~ODUCTORY SECTION I I I Elected Officials I I Barbara Brancel Robert Gagne Jr. Kristi stover Robert Daugherty Daniel Lewis I I Appointed Officials I James C. Hurm Alan J. Rolek I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 1992 Term Expires Mayor Council Member Council Member Council Member Council Member 1992 1992 1992 1994 1994 City Administrator Finance Director/Treasurer I I I 0 0 I 0 $ I w cc I 0 :I: (fJ I u. 0 I > I- - I () en a: w I l- I- a: 0 I cd: > :I: - () I ..J cd: I 2 0 - I I- cd: I N - 2 I cd: CJ I a: 0 I I I en 2 a - (/)(/) c(/) 0::- c::(~ a~ ma () o(S -j L..... ..J - () 2 ::::> a u > I- - I U I I I I 1 > w 2 0:: a l- I- <( > t- - () -.I .... I 'z W o ~ ,- ~z<xsfi: ~oo~ ~ cnZcn o~(j)<t u~::)1- o::::Ow oo:::::cu "'0 _ :=uo:> z 00: Z~-w <to:Zcn ...J<tw a.a.cn . . - c: o I- <( c: t- en - -2 - ~ c <( > I- - L () J / / .-l r;. t-_ WI- u-(.) 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C. <J CCeIlO~ ..!!!occt C; I';J . . ell _ - E <J C ell C ctl ctl Cll co'- ~. E 0-01 C Ul C .000iUeCl 0 G; G; ~ Ea..!: ~. ~ > =occ-;;'->o o .D-ocuo'-a. o 01 ell :J C .O:;..!!! ctl ell .- -cc~a.~ctla.~~G)c ~ .Uj .2 '- -:: ~ ~ C cn :0 '0 CllC_Octl.DU,-ocnctl-, CQlU<JCl:JQlctlU<tU Ql<J~QlQla.a:a._. . O:::iwa:..... . . . . . . . E Ql - ell cn >- ell C (/) 01 01 - CllCl'-c - C C E C e 'Uj Cll.O:; G) 'O:;:J ctl cc_E ~Cllc..c: C:JOtlClG)ClE~ o 0 ~ G).!: cn"c O:J eIl<J>->=cn:J '- U ctl c.-<tmua. ~<ta..C?.. . . . . <J > en..... OlE C 01 .;::~ Cll..... Cll <J C Ql '0'0' C ~ wa. . . .B.. G) 'Cii= (/)ctl . ..... - Cll (5 a: . ..., C'4 O'l O'l .- .- 0. <( - . "0 '- ctl o .D 01 C 'c ~ Cll > o 01 - ..... C .0 C o Cll > .0:; co - C Ql Ul Ql '- C. Ql '- - Ul >- - u .~ '- o >- ctl ~ .\ . I I I I I I I I I I I I I I I I I I I MAYOR Barb Brancel COUNCI L KristiStover Rob Daugherty Daniel Lewis Bruce Benson CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927 · (612) 474-3236 April 28, 1993 Honorable Mayor and Members of the City Council City of Shorewood, Minnesota Councilmembers: The Comprehensive Annual .Financial Report of the City of Shorewood, Minnesota for the fiscal year ended Decembe+ 31, 1992, isher~by submitted. Responsibilityfpr both the accuracy of the data, and the completeness an4 fairness of the piresentation, including all disclosures, rests with the City. .To the best of our knowledge and belief, the enclosed data.is accurate ~~ all material respects and is reported in a manner designated to present fairly the financial position and results of ope+ations of the var*eusfunds and account groups of the City. All dj,sclosures necessary to enable the reader to gain an understanding of the City'S financial activities have been included. The Comprehensive An~ual Financial Report is presented in three sections: Introductory, Financial and statistical. The Introductory section includes this transmittal letter, the\city's organizational chart and a list of City official~. The Financial section includes the general purpose financial statements and the combining and. individual fund and account group financial statements an4 schedules, along with the auditor's report ort the financial statements. The statistical section includes selected financial and demographic information, generally pr~sented on a multi-year basis. - The organization, form and contents of this report were prepared i9 accordance with the standards prescribed by the. Gover~~ental Accounting Standards Board, the Government FinanGe Officers i Association of the united States and Canada, the American Institute of Certified PUblic Accountants, and the Minnesota state Al.1ditor's Office. The funds included in our Comprehensive Annual FinaI'l.9ial Rep6rt are those considered to be within the oversight responsibility of t~e City Council. The criteria used in determining the repo!:'ting entity is consistent with ('those established by the Governmental Accounting Standards Board. Based on these criteria, all funds and account groups of the City are included in this report. A Residential Community on Lake Minnetonka's South Shore I II I I I I I I I 1 I 1 1 I 1 1 1 1 1 I, 1 The City provides its resiq.ents and businesses with a full range of municipal services consisting of police, fire, public works, parks and general administrative services. The City also operates four enterprises: awaterut-ility, sewer utility, recycling utility and an off-sale liquor operation, consisting of two store sites. ECONOMIC CONDITION AND OUTLOOK The City of Shorewood is a suburb of the City of, M.inneapolis and is located 25 ~iles southwest of the central business district on the southern shore of Lake Minnetonka. The City is predominantly: a residential coyununity with limited commercial businesses and/dne commercial shopping mall. The City ~s 6 square miles in areaPand has an estimated population of 6,135. While the City has experie~ced an accelerated rate of growth in resideI)tial development during the, 1980 's, the growth rate has slowed in the 1990's. The City will continue to experience gr()yth in it's residential base in the future, but because of the limited availability of large tracts of land, this will come at a reduced rate and likely will be smaller developments than in the past. MAJOR INITIATIVES FINANCIAL AND MANAGEMENT EMPHASIS EMPHASIS ON GOVER~ANCE The City Council in its leadership role is effectively establishing a focus for city government in Shorewood. The Council has adopted a strong set of values by which decisions are to b~ made .:It has adopted a statement of purpose and established overall goals.and expectations for the city. It has identified issues facing the City and prioritized them so that the staff can eff~ciently ~nd effectively allocate time and resources. EMPHASIS ON SYSTEM IMPROVEMENTS The City Council has ad~pted an open.governmentpolicy and is il:llplementing it l;>y televising City, Council meetings , "by impr9vin9 quarterly citizen newsle;tters and by' directing, city staff to improv~ communication to those residents affected by projects and special assessments. A new more effecti ve schedule of communications to citizens is being implemented. The, CitYCounci:J. recognizes that i~s work consists of more than responding to citizen requests and adopting an annual budget. Th~ City Council's calendar consists of three phases. The first phase is Planning, which. includes employee and systems evaluations, review of the previous years work plan, r'eview of the City~s Comprehensive Plan Executive, Summary, review of the /Statements ", of 'I>urpose and Values, and identification and prioritization of iss,u.es for the next twelve and, twenty-four months. I I I I I I I I I I I I I I I I I I I The second phase is that of Programming. Each year the five-year Capital Improvement Program is reviewed and updated based upon priorities established in phase one. In addition, any changes to the Comprehensive Plan are made based upon the phase one decisions. The third phase is Budgeting. The operating budget is established based on decisions made in the first two phases. A revised budget format was utilized for the 1993 budget process which provides information and analytical data to the City Council and other readers. It defines departmental missions and sets objectives for the budget year. In addition, it measures services provided and identifies the net affect each departmental budget has on property taxes. The Capital Improvement Budget is established as year one of the five-year Capital Improvement Program. The City's five-year Capital Improvement Program is a very important financial planning document as it projects the City's capital improvement needs and identifies financial resources to meet those needs. It clearly identifies areas where policies are lacking and where problems may arise in the future. EMPHASIS ON PUBLIC IMPROVEMENTS In 1992, the City, in conjunction with the state of Minnesota Department of Transportation, completed construction of intersection improvements on Highway 7 and Old Market Road. The project included improvements to the service road along Highway 7, the closure of five on-off ramps, storm sewer and retention ponds, and the extension of water and sanitary sewer utility lines. These improvements will be paid for with state Aid Funds and with proceeds of tax increment revenue bonds issued in 1991. The City also completed construction of a water treatment plant benefitting the residents in the southeast area of the city. Construction of a new Public Works facility and salt/sand storage building was completed in 1992. The City is now undertaking demolition of the old Public Works buildings and renovation of the old site to better blend with the City Hall and Badger Park environment. Preparations were made to begin implementation of a surface water management program through the establishment of a surface water management utility. The first billing cycle for the new utility will take place in the first quarter of 1993. As was planned in the Park Capital Improvement Program, the Silverwood Park grading and pond excavation project was completed in 1992. The Park Commission has initiated work on a city-wide park and trail improvement bond referendum question which will be presented in a special election in Spring, 1993. The referendum will allow for accelerated funding of planned park improvements through general obligation bonds. III IV I I I I I I I I I I I I I I I I I I I EMPHASIS ON EFFICIENTLY, EFFECTIVELY MEETING SERVICE NEEDS As one of fourteen Lake Minnetonka Area municipalities, the City of Shorewood is involved in many contractual arrangements with other jurisdictions and private enterprises, to deliver municipal services to residents of the City. The City of Shorewood is committed to working cooperatively with area governmental jurisdictions to carefully consider optional methods to effectively deliver public services as efficiently as possible. FINANCIAL INFORMATION INTERNAL CONTROLS Management of the City is responsible for establishing and maintaining an internal control structure in the accounting system designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that fair, reliable and accurate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these obj ecti ves are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits; 2) the valuation of costs and benefits requires estimates and judgments by management. As part of the City's annual audit, the internal control system is evaluated to the extent necessary for audit purposes and changes are recommended when needed. BUDGETING CONTROLS The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund are included in the annual appropriated budget. The level of budgetary control is established at the fund level, but management control is exercised at the line item level. As demonstrated by the statements and schedules included in the financial section of this report, the city continues to meet its responsibility for sound financial management. GENERAL GOVERNMENT FUNCTIONS The following schedule presents a summary of General Fund and Debt Service Fund revenues for the fiscal year ended December 31, 1992 and the amount of increases or decreases in relation to the prior year's revenues. I I I I I I I I I I I I I I I I I I I INCREASE REVENUES AND OTHER (DECREASE) FINANCING SOURCES AMOUNT % OF TOTAL FROM 1991 General Property Taxes $1,584,237 57.07% $ (44,008) Licenses and permits 175,123 6.31 6,563 Intergovernmental 283,689 10.22 130,008 Charges for Services 9,819 .35 6,184 Fines and Forfeitures 89,960 3.24 (11,240) Special Assessments 382,882 13.79 (106,071) Interest on Investments 163,964 5.91 (49,569) Miscellaneous 51,434 1.85 (62) Proceeds of Bond Issue -0- -0- (273,956) Operating Transfers In 35.000 1.26 10.000 Total $2.776.108 100.00% $(332.151) In 1992, intergovernmental revenue represented the single largest increase in revenue. Because of deep cuts in aid to cities made by the State of Minnesota in 1991, the City did not receive its full allocation of Homestead and Agriculture Aid Credit for 1991. The City received its full allotment for 1992, making this a much more stable revenue source for the year. Other areas experiencing increases for the year include licenses and permits and charges for services. The permit area experienced an increase due to a large project by the school district begun in the fall of 1992. A greater than expected number of zoning applications was the primary factor for increased revenue in charges for service. General property taxes collected showed a decrease from 1991. This is due to a freeze in the property tax levy for 1992 and slower collections. Despite this decrease, the City council continued its plan to accumulate resources for future capi tal equipment and improvement projects. These amounts were transferred to various capital projects funds and will be applied to future equipment acquisitions and capital improvements. There were decreases in revenue in several categories. The tumultuous drop in interest rates from the previous year and a decline in excess cash caused a steep decline in interest revenue in 1992. Special assessment revenues also decreased by a large margin in 1992. The City has levied a minimal amount of special assessments in recent years and assessment levies have expired, which decreases the amount of special assessment revenue collected by the city. The following table presents a summary of General Fund and Debt Service Fund expenditures for the fiscal year ended December 31, 1992 and the amount of increases or decreases in relation to the prior year's expenditures. v VI I I I I I I I I I I I I I I I I I I I INCREASE EXPENDITURES AND (DECREASE) OTHER USES AMOUNT % OF TOTAL FROM 1991 CURRENT: General. Government $ 654,085 19.39% $ (11,067) Public Safety 571,077 16.93 22,734 Public Works 434,015 12.86 58,609 Parks and Recreation 116,173 3.44 (25,995) Operating Transfers Out 526,600 15.61 15,888 DEBT SERVICE: Principal 905,000 26.82 615,000 Interest 167.163 4.95 (6.332) TOTAL $3.374.113 100.00% $ 668.837 The debt service principal experienced a large increase in 1992 over 1991 due to a major bond refunding. Bonds were issued in 1991 to refund the 1986 Improvement Bonds, which were called in February, 1992. Public Works expenditures showed a substantial increase from 1991. This is mainly due to a large number street and road repairs made necessary by a harsh winter in 1991-92, and to wage increases. The increase in the public safety area was primarily due to significant increases in fire contract amounts and protective inspection costs. General government expenditures decreased in 1992 due largely to lower prosecution and legal fees during the year and to greater control exercised over miscellaneous services. Park and recreation expenditures decreased in 1992 mainly due to decreased personnel costs and lower capital outlay. GENERAL FUND BALANCE The fund balance of the General Fund increased by $5,439 in 1992, a difference of 0.43%. The fund balance as of December 31, 1992 is $1,257,632. The fund balance is designated for working capital requirements through the first six months of the year. It is important for the City to maintain the existing fund balance as a reserve to meet expenditures in the General fund until property tax proceeds are received in July. ENTERPRISE OPERATION The City's enterprise fund activities for 1992 are summarized as follows: OPERATING OPERATING OPERATING REVENUES EXPENSES INCOME (LOSS) Water $199,891 $186,842 $ 13,049 Sewer 560,134 633,724 (73,590) Recycling 70,981 63,436 7,545 Liquor - Store I 577,225 556,276 20,949 Store II 800,685 782,402 18,283 I I I I I I I I I I I I I I I I I I I Generally accepted accounting principles require the depreciation of contributed assets, which results in net losses in some cases. However, past and present City financial practice does not include the recovery of such depreciation in the setting of utility rates, which, in effect, would recover that cost a second time. The City's utility rate setting is done with reference to the working capital of the fund and assumes continued customer contributions through special assessments. DEBT ADMINISTRATION As of December 31, 1992, the City's total debt outstanding totaled $3,416,000. Of this total, $2,441,000 were general obligation bonds issued to finance the construction of sanitary sewer, street, water and storm sewer improvements. The repayment of these bonds is provided through the proceeds of special assessments levied against benefitted properties. Also included are $55,000 in general obligation water revenue bonds issued for improvements to the City water system, which will be repaid from Water Fund revenues. A general obligation storm sewer improvement bond of $31,000 was issued for storm sewer improvements within a special storm drainage district. The repayment of these bonds will be provided through an ad valorem tax levied against properties within the storm drainage district. Tax increment revenue bonds of $920,000 were issued for construction of public improvements in the Waterford III development which will be repaid from tax increments. Because these revenue bonds are not backed by the full faith and credit of the City, in the absence of tax increments from Tax Increment Financing District No.1, the City has no obligation to repay the bonds. The City has maintained an "A" rating from Moody's Investor Service on general obligation bond issues. CASH MANAGEMENT The City of Shorewood subscribes to the "pooled cash" concept of investing which means that all funds with cash balances participate in an investment pool. This permits some funds to be overdrawn and other funds to show positive cash balances, with the City overall maintaining a posi ti ve cash balance. This pooled cash concept provides for investing of greater amounts of money at more favorable rates. Interest earnings are then allocated to the participating funds. During 1992, the City of Shorewood earned $287,679 in interest revenue. RISK MANAGEMENT The City of Shorewood's worker's compensation insurance and its general property and liability coverage are provided through the League of Minnesota Cities Insurance Trust (LMCIT). The LMCIT worker's compensation program is a joint self-insurance plan designed to lower and stabilize cities worker's compensation costs and to assure that cities have a source of coverage available. VII VIII I I I I I I I I I I I I I I I I I I I Each participating city deposits with the LMCIT its worker's compensation deposit premium for the policy year. The deposit premium is calculated using standard manual rates with the applicable volume discounts and experience modification factor. From these deposits, LMCIT purchases reinsurance to protect the program from catastrophic and abnormal payment claims. The balance of the deposits and reserves are invested, with the earnings accruing to the benefit of all participants. LMCIT's reserves and rates are reviewed annually by an actuary to help assure that the program remains financially strong. OTHER INFORMATION INDEPENDENT AUDIT Minnesota state statutes require an annual audit of the City's accounts by the Minnesota state Auditor or by independent certified public accountants. The auditor's report on the general purpose financial statements and schedules is included in the financial section of this report. ACKNOWLEDGMENTS We would like to acknowledge the efforts of the city staff, especially the Finance Department staff, and the City's independent auditor, without whose assistance and cooperation the timely preparation of the Comprehensive Annual Financial Report would not have been possible. espectfully Submitted, '~ "r~ L~ Alan . olek Fi~~e Director/Treasurer ames C. Hurm City Administrator I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION II FINANCIAL SECTION \ 1\ I I APIX) I I CERTIFIED PuBLIC ACCOUNTANTS AND CoNSULTANTS I INDEPENDENT AUDITOR'S REPORT I Honorable Mayor and City Council City of Shorewood, Minnesota I I We have audited the accompanying general purpose financial statements of the City of Shorewood, Minnesota, for the year ended December 31, 1992 as listed in the table of contents. These financial statements are the responsibility of the City of Shorewood, Minnesota's management. Our responsibility is to express an opinion on these financial statements based on our audit. I We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. I I I In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Shorewood, Minnesota at December 31, 1992 and the results of its operations and the cash flows of its Proprietary Fund Types for the year then ended, in conformity with generally accepted accounting principles. I Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents, which are also the responsibility of the City's management, are presented for purposes of additional analysis and are not a required part of the financial statements of the City. Such financial statements and schedules have been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the general purpose financial statements taken as a whole. I I I {)J.L" dbL ~ a March 11, 1993 Minneapolis, Minnesota ABDO, ABDO & EICK Certified Public Accountants I I Member of American Institute of Certified Public Accountants Private Companies Practice Section I 115 EAST HICKORY SfREET. SUITE 302 P.O. BOX 3166 MANKATO. MINNESOTA 56002.3166 (507) 625.2727 FAX (507) 388-9139 204 EAST PEARL STREET P.o. BOX 345 OWATONNA. MINNESOTA 55060.0345 (507) 451.9136 FAX (507) 451.0794 1060 NORTHLAND PLAZA 3800 WEST 80TH SfREET MINNEAPOLIS. MINNESOTA 55431 (612) 835.9090 FAX (612) 896.3620 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA' GENERAL PURPOSE FINANCIAL STATEMENTS The general purpose financial statements and notes to the financial stafements are intended to provide an overview and broad perspective of the City's financial position and operations. These statements present a summary set of information needed to control and analyze current operations to determine compliance with legal and budgetary limitations and to assist in fmancial planning. The following general purpose fmancial statements are presented: Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types . Combined Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of CashiFlows - All Proprietary Fund Types I CITY OF SHOREWOOD, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES YEAR ENDED DECEMBER 31, 1992 General Debt Service REVENUE General property taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Miscellaneous Special assessments Interest on investments Other $1 576 158 $ 8 079 175 123 283 689 9 819 89 960 382 882 86 206 77 758 51 434 TOTAL REVENUE 2 272 389 46ff 719 EXPENDITURES Current General government Public safety Public works Parks and recreation Capital outlay Debt service Principal Interest and service charges 654 085 571 077 434 015 116 173 905 000 167 163 TOTAL EXPENDITURES 1 775 350 1 072 163 497 039 (603 444) EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Proceeds of bonds issued Operating transfers in Operating transfers out 35 000 (526 600) TOTAL OTHER FINANCING SOURCES (USES) (491 600) EXCESS REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 5 439 (60~ 444) 1 252 193 2 314 486 FUND BALANCE, JANUARY 1 FUND EQUITY TRANSFER IN 616 959 FUND EQUITY TRANSFER (OUT) FUND BALANCE, DECEMBER 31 (582 972) $1 257 632 $1 745 029 $ 656 465 I See Notes to Financial Statements. -3- I Capital proiects I $ I 555 970 108 426 62 496 31 797 I 758 689 I I 1 746 617 I 1 746 617 I (987 928) I 1 276 600 (760 000) I 516 600 I (471 328) 1 161 780 I 3 332 (37 319) I I I I I I I Exhibit 2 Total I (Memorandum Only) 1992 1991 $1 584 237 $1 628 245 I 175 123 168 560 839 659 153 681 9 819 3 635 89 960 101 200 I 491 308 628 067 226 460 273 559 83 231 77 816 I 3 499 797 3 034 763 I 654 085 665 152 571 077 548 343 434 015 375 406 I 116 173 142 168 1 746 617 1 571 145 905 000 290 000 I 167 163 173 495 4 594 130 3 765 709 I (1 094 333) (730 946) 1 905 121 I 1 311 600 555 712 (1 286 600) (510 712) I 25 000 1 950 121 (1 069 333) 1 219 175 I 4 728 459 3 509 284 620 291 I (620 291) S3 659 126 S4 728 459. I I I I I -3- CITY OF SHOREWOOD, MINNESOTA Exhibit 3 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31, 1992 Variance Favorable Budqet Actual (Unfavorable) REVENUE General property taxes $1 575 729 $1 576 158 $ 429 Licenses and permits 128 525 175 123 46 598 Intergovernmental 283 684 283 689 5 Charges for services 9 500 9 819 319 Fines and forfeitures 95 000 89 960 (5 040) Miscellaneous Special assessments Interest on investments 52 000 86 206 34 206 Other 17 000 51 434 34 434 TOTAL REVENUE 2 161 438 2 272 389 110 951 EXPENDITURES General government 673 246 654 085 19 161 Public safety 587 167 571 077 16 090 Public works 411 373 434 015 (22 642) Parks and recreation 154 852 116 173 38 679 TOTAL EXPENDITURES 1 826 638 1 775 350 51 288 EXCESS REVENUE (EXPENDITURES) 334 800 497 039 162 239 OTHER FINANCING SOURCES (USES) Operating transfers in 35 000 35 000 Operating transfers out (532 000) (526 600) 5 400 TOTAL OTHER FINANCING SOURCES (USES) (497 000) (491 600) 5 400 EXCESS REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES S (162 200) 5 439 $ 167 639 FUND BALANCE, JANUARY 1 1 252 193 FUND BALANCE, DECEMBER 31 $1 257 632 See Notes to Financial Statements. -4- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit 4 COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31, 1992 OPERATING REVENUE Sales Less cost of sales $1 377 910 1 113 132 264 778 804 726 26 280 1 095 784 163 511 15 231 17 163 238 433 7 344 134 674 1 051 20 757 13 570 48 368 376 668 45 159 7 216 20 403 1 109 548 (13 764) 13 630 2 298 61 219 30 365 (5 823) 101 689 87 925 (25 000) 62 925 735 725 S 798 650 GROSS PROFIT Charges for services Permits and connection fees GROSS PROFIT AND REVENUE OPERATING EXPENSES Personal services Supplies Repairs and maintenance Depreciation Professional services Contracted services Communication Insurance Water purchases Utilities Metropolitan Waste Control Commission disposal charges Rent Advertising Other TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) OTHER REVENUE (EXPENSES) General property taxes Property tax credits Interest on investments Other income Interest expense TOTAL OTHER REVENUE (EXPENSES) INCOME BEFORE TRANSFERS OPERATING TRANSFERS TO OTHER FUNDS NET INCOME RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS, DECEMBER 31 See Notes to Financial Statements. -5- CITY OF SHOREWOOD, MINNESOTA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31, 1992 Exhibit 5 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Other income related to operations Adjustments to reconcile operating income to net cash provided by operating activities Depreciation and amortization (Increase) decrease in assets - Taxes Accounts Accrued interest Special assessments Inventory Prepaid items Increase (decrease) in liabilities - Accounts payable Salaries and compensated absences payable $ (13 764) 30 365 238 433 76 (14 347) (513) 374 10 946 (774 ) (27 238) (4 475) 219 083 (25 000) (10 000) (5 823) (94 662) 15 928 (94 557) 61 219 160 745 1 003 217 $1 163 962 CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NON CAP I TAL FINANCING ACTIVITIES Operating transfers to other funds CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Bond principal paid Interest paid on revenue bonds Acquisition of property and equipment Property taxes levied for debt service CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Property and equipment acquired from other funds $ 646 575 See Notes to Financial Statements. -6- I I I I I I I I I I I I I I I I I I I I I I Note 1: I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Shorewood, Minnesota have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the government's accounting policies are described below. A. Reportina Entitv In accordance with GASB pronouncements, the City's financial statements include all funds, account groups, departments, agencies, boards, commissions, and other organizations over which City officials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of governing body members, budget review, approval of property tax levies, outstanding debt secured by the City's full faith and credit or revenues, and responsibility for funding deficits. As a result of applying the entity definition criteria of the Governmental Accounting Standards Board, certain organizations have been included or excluded from the City's financial statements, as follows: Excluded from the reporting entity: Independent School District No. 276 and 277 (Minnetonka and Westonka Public Schools) The Districts, like all school districts in Minnesota, are completely independent of any other governmental entity. They have their own elected Board of Education, levy their own taxes and prepare their own financial reports. Accordingly, the Districts are excluded from the reporting entity. B. Fund Accountina Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into five generic fund types and three broad fund categories. The broad fund categories are governmental, proprietary and fiduciary. Governmental funds account for all or nearly all of a government's general activities, proprietary funds account for enterprise activities, and fiduciary funds are used to account for assets held on behalf of others. The fund types accounted for within each broad fund category follow: -7- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED GOVERNMENTAL FUNDS: General Fund - The General Fund is the general operating fund of the City and accounts for all revenues and expenditures not required to be accounted for in another fund. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of general long-term debt principal, interest and related costs. Capital Projects Funds - Capital Projects Funds are used to account for all resources used for the acquisition or construction of major capital facilities. PROPRIETARY FUNDS: Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. FIDUCIARY FUNDS: Agency Funds - Agency Funds are used to account for assets held by the City on behalf of others as their agent. The governmental fund types previously discussed are designed to account for the financial flow of a particular fund; therefore, they generally include only current assets and current liabilities on their balance sheets. Their reported fund balance is considered a measure of available spendable resources. The City also maintains two account groups for noncurrent assets and liabilities. These account groups are concerned only with the measurement of financial position. They are as follows: General Fixed Assets Account Group - This separate account group contains the fixed assets used in the governmental fund type operations. They are assets of the City as a whole and not of individual funds. Public domain general fixed assets consisting of certain improvements other than buildings, including roads, curbs and gutters, streets and sidewalks, drainage systems, are not capitalized along with other general fixed assets. The assets are valued at estimated historical cost or appraised value and no depreciation has been provided on them. General Long-term Debt Account Group - This separate account group contains the long-term liabilities of the City expected to be financed from governmental funds. They are liabilities of the City as a whole and not of individual funds. The exception to this rule is for proprietary fund type long-term debt which is accounted for in that fund type. All proprietary funds are accounted for on a cost of services or capital maintenance measurement focus. Therefore, all assets and liabilities, both current and noncurrent, are included on their balance sheets. All fixed assets are stated at historical or estimated historical cost. -8- I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED C. Basis of Accountinq I The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenue and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. I I All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund-type operating statements present increases (e.g., revenue) and decreases (e.g., expenses) in net total assets. I I I The modified accrual basis of accounting is used by all governmental fund types and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The government considers property taxes as available if they are collected within 60 days after year end. Special assessments are recognized as revenue as the principal amount is collected. Substantially all other sources of revenue are accrued. I I Expenditures are generally recorded when the related fund liability is incurred except principal and interest on general long-term debt which are recorded as fund liabilities when due. I Proprietary funds are accounted for using the accrual basis of accounting. Their revenue is recognized when it is earned, and their expenses are recognized when they are incurred. I Fixed assets are recorded in the proprietary funds at historical cost. Depreciation is charged as an expense against operations and accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: I Furniture and equipment Distribution and collection systems 5 - 10 years 40 years I D. Budqets I Budgets are adopted on a basis consistent with generally accepted accounting principles. An annual appropriated budget is adopted for the general fund. All annual appropriations lapse at fiscal year end. Project-length financial plans are adopted for all capital projects funds. The City follows these procedures in establishing the budgetary data reflected in the financial statements: I I 1. Prior to January 1, the budget is adopted by the City Council. I -9- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED I 2. Formal budgetary integration is employed as a management control device during the year for the General Fund. 3. Reported budget amounts are as originally adopted or as amended by Council approved supplemental appropriations and budget transfers. Supplemental budgetary appropriations were not material in 1992 in relation to the original appropriation. I I E. Cash and Investments Cash and investments include demand deposits and short-term investments. I The City invests cash balances from all funds, to the extent available, in certificates of deposit and other authorized investments. Investments are carried at cost or amortized cost, except for investments in the deferred I compensation agency fund which are reported at market value. F. Cash and Cash Equivalents For purposes of the statement of cash flows, the Enterprise Funds consider I all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. G. Inventories I Inventories are valued at cost, which approximates market, using the first-injfirst-out (FIFO) method. I H. Prepaid Items Payments made to vendors for service that will benefit periods beyond December 31, 1992 are recorded as prepaid items. I. Fixed Assets I General fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds, and the related assets are reported in the general fixed assets account group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value on the date received. I I Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are immovable and of value only to the government. I I Assets in the general fixed assets account group are not depreciated. Depreciation of buildings, equipment and vehicles in the proprietary fund types is computed using the straight-line method. The costs of normal maintenance and repairs in the proprietary fund types that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets. I I I -10- I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED J. Compensated Absences I Vested accumulated vacation or sick leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the general long-term debt account group. No expenditure is reported for these amounts. Vested or accumulated vacation leave of proprietary fund types is recorded as an expense and liability of those funds as the benefits accrue to employees. In accordance with the provisions of Statement of Financial Accounting Standards No. 43, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. I I I K. Lonq-term Obliqations I Long-term debt is recognized as a liability of a governmental fund when due, or when resources have been accumulated in the debt service fund for payment early in the following year. For other long-term obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. I Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. I I All long-term bonded debt, except the Tax Increment Revenue Bonds, issued by the City is backed by the full faith and credit of the City. The general obligation bonds include special assessment and revenue bonds, which are intended to be repaid from revenue sources other than general property taxes. L. Fund Eouitv I Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. I I M. Interfund Transactions I Quasi-external transactions are accounted for as revenue, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. I All other inter fund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. I I I -11- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED I N. Memorandum Onlv - Total Columns Total columns on the general purpose financial statements are captioned I "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or changes in financial position in I conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. O. Comparative Data I Comparative total data for the prior year has been presented in the accompanying financial statements in order to provide an understanding of changes in the government's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand. I Note 2: LEGAL COMPLIANCE - BUDGETS I On or before the last Friday in August of each year, all agencies of the government submit requests for appropriation to the City's administrator so that a budget may be prepared. The budget is prepared by fund, function and activity, and includes information on the past year, current year estimates and requested appropriations for the next fiscal year. I The proposed budget is presented to the government's council for review. The government's council hOlds public hearings and may add to, subtract from or change appropriations. Any changes in the budget must be within the revenues and reserves estimated as available or the revenue estimates must be changed by an affirmative vote of a majority of the government's council. I I Expenditures may not legally exceed budgeted appropriations at the fund level. During the year, supplementary appropriations were not material. I Note 3: DEPOSITS AND INVESTMENTS Cash surpluses are pooled and invested in certificates of deposit and short-term government securities. Investment earnings are allocated to funds on the basis of average cash balances. Investments are stated at cost, which approximates market value, and are not identified with specific funds. Deposits I I In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, 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% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). I I 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 treasurer or in a financial institution other than that furnishing the collateral. I I -12- I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 I Note 3: DEPOSITS AND INVESTMENTS - CONTINUED Balances at December 31, 1992: I Insured or collateralized by securities held by the City or its agent in the City's name Bank Balances Carrying Amount I $2 360 209 $2 252 384 Investments I The City also invests idle funds, as authorized by Minnesota Statutes, in the following: a. Direct obligations or obligations guaranteed by the United States or its agencies. I b. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. I c. Bankers acceptances of United States Banks eligible for purchase by the Federal Reserve System. d. Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. I I e. Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. I I Balances at December 31, 1992: Securities Credit Risk CateQory Carrying Market Type 1 2 3 Amount Value U.S. Government $1 822 101 $ $ $1 822 101 $1 867 852 Commercial Paper 833 546 833 546 835 187 Total investments $1 822 101 $ $833 546 $2 655 647 $2 703 039 I I The City's investments are categorized to give an indication of the level of risk assumed at year end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent but not in the City's name. I I I The following is a summary of the cash and temporary investments reported on the combined balance sheet as of December 31: Deposits Investments $2 252 384 2 655 647 I Total $4 908 031 I -13- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 Note 4: RECEIVABLES A. Propertv Taxes The City Council annually adopts a tax levy by December 28 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 January 1 on taxable property and is payable in May and October each year. The taxes are collected by the County Treasurer and tax settlements are made to the City three times each year. Taxes payable on homestead property, as defined by State Statutes, are partially reduced by a homestead and agricultural credit aid. These credits are paid to the City by the State of Minnesota in lieu of taxes levied against homestead property. The State remits this credit in two equal installments in July and December each year. Allowances are provided for the full amount of delinquent taxes except those collected by the County in November and December and remitted to the City within sixty days after year end. The allowance is reported on the balance sheet as deferred revenue. I I I I I I I I B. Accounts Receivable Accounts receivable include amounts billed for services provided before I year end. C. Contract Receivable The balance, together with 10% interest, is receivable in monthly installments of $833 through April I, 1993, at which time the balance of $91,898 is due. The receivable is offset by deferred revenue and the payments are recognized as revenue when received. D. Special Assessments Special assessments receivable include the following components: o Delinquent - includes amounts billed to property owners but not paid. I I I I Deferred - includes assessment installments which will be billed to property owners in future years. Special assessments are recognized as a receivable and deferred revenue I when the assessments are certified to the County for collection. Special assessments are recognized as revenue when received in cash. o -14- I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 Note 5: FIXED ASSETS The following is a summary of changes in the general fixed assets account group during the year: Balance Balance January 1, December 31, 1992 Additions Retirements 1992 Land $ 449 326 $ $ $ 449 326 Buildings and structures 504 781 852 089 105 000 1 251 870 Improvements other than buildings 554 167 150 014 704 181 Furniture and equip- ment 805 179 61 489 7 774 858 894 Total general fixed assets $2 313 453 $1 063 592 $112 774 $3 264 271 A summary of proprietary fund property and equipment at December 31, 1992 follows: Public Utilities Liquor Funds Water Sewer Store I Store II Total Furniture and equipment $ 24 148 $ 36 661 $ 24 917 $ 9 161 $ 94 887 Collection and distribution systems 2 915 343 7 130 794 10 046 137 Total 2 939 491 7 167 455 24 917 9 161 10 141 024 Less accumulated depreciation (523 440) (3 384 103) (24 917) (8 267) (3 940 727) Net property, plant and equipment $2 416 051 $3 783 352 $ $ 894 $ 6 200 297 Note 6: LONG-TERM OBLIGATIONS Long-term Obligations - Bonds The following is a summary of changes in long-term bonded debt of the City for the year ended December 31, 1992: General Long-term Debt Account Group Special Tax Increment Assessment Revenue Bond Proprietary Funds Revenue Total $ 65 000 $4 331 000 (10 000) (915 000) $ 55 000 $3 416 000 Payable January 1, 1992 Debt retired $3 346 000 (905 000) $920 000 Payable December 31, 1992 $2 441 000 $920 000 -15- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 Note 6: LONG-TERM OBLIGATIONS - CONTINUED I I I The long-term bonded debt obligations outstanding at December 31, 1992 are summarized as follows: Types of Bonds Maturities Rate General obligation special assessment bonds Tax increment revenue bonds General obligation water revenue bonds 1993 - 2003 1993 - 1997 4.50 - 8.00% 9.00 1993 - 1996 8.50 Total I Balance December 31, 1992 $2 441 000 920 000 I 55 000 I $3 416 000 The annual requirements to amortize all bonded debt outstanding at December 31, 1992, including interest payments totaling $1,092,415 are as follows: Year Ending December 31. General Long-term Debt Proprietary Account Group Funds Special Tax Increment Assessment Revenue Bond Revenue 1993 1994 1995 1996 1997 1998 - 2002 2003 $ 400 860 382 631 358 458 340 295 321 565 1 284 998 77 437 $3 166 244 $ 160 446 278 300 284 850 279 150 272 100 $ 14 675 18 825 17 550 16 275 Total $1 274 846 $ 67 325 I Total $ 575 981 679 756 660 858 635 720 593 665 1 284 998 77 437 $4 508 415 I I I I Long-term Obligations - Other Changes in long-term obligations other than bonds are summarized as follows: I Compensated Absences I Payable Payable, January 1 Net change in compensated absences Payable, December 31 Note 7: OPERATING LEASES $ 16 910 2 544 I $ 19 454 I The City leases space for the two off-sale liquor store operations. These leases are considered, for accounting purposes, to be operating leases. Lease expense for the year ended December 31, 1992 amounted to $45,159. Future minimum lease payments for these leases are as follows: Years Ending December 31. Liquor Store II 1993 $ 21 600 I I The lease for Liquor Store I has expired and is currently being renegotiated. I -16- I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 I Note 8: FUND EQUITY The various components of fund equity are contributed capital, retained earnings, and fund balance. I Contributed Capital - The amount represents ~he value of assets contributed to the enterprise funds by other City funds. Additions during the year totalled $646,575. I Reserved Fund Balance - This represents the portion of fund balance which cannot be appropriated for future expenditures. The following reservations of fund equity have been made as of December 31, 1992: Bond reserve 1984 Improvement (1987 Refunding) $ 488 428 Shorewood Oaks 868 392 1974 Sewer Improvement 37 671 1991 Improvement and Refunding 345 704 Shady Hills Storm Sewer Improvement 2 547 Total Bond Reserve $1 742 742 I I I I Designated Fund Balance - Designated amounts indicate tentative plans for future uses of financial resources. The following unreserved fund balances have been designated: I General Fund Designated for working capital Debt Service Fund 1971 and 1972 Sewer Improvement - designated for fiscal fees Capital Projects Funds Designated for capital projects Capital Improvements Park Capital Improvement Water ford III Tax Increment Improvement Equipment Replacement Church Road Improvement Silverwood Park Grading Street reconstruction I I I $1 257 632 2 287 141 203 4 343 99 687 83 114 18 286 595 312 000 I Unreserved and undesignated amounts are available to finance current and future years' expenditures. Note 9: LEGAL COMPLIANCE I Fund Deficits The following funds have a deficit fund balance or retained earnings as of December 31, 1992: I Capital Projects Fund Public works facility Proprietary Fund Water Fund I $ 2 763 172 478 The deficits in the Public Works Facility and Water Fund will be eliminated by future revenues. I I -17- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 Note 10: SEGMENT INFORMATION - PROPRIETARY FUNDS Sales less cost of sales of $460,905 and $652,227, respectively $ Charges for services Permits and connection fees Gross profit and revenue Expenses excluding depreciation Income before depreciation Depreciation Operating income (loss) Other revenue (expenses) General property taxes Property tax credits Interest on investments Other income Interest expense Total other revenue (expenses) Income (loss) before transfers Operating transfers to other funds Water 179 411 20 480 199 891 125 714 74 177 61 128 13 049 13 630 2 298 7 616 7 829 (5 823) 25 550 38 599 Sewer Recyclinq $ $ 554 334 70 981 5 800 560 134 70 981 457 114 63 436 103 020 176 610 7 545 (73 590) 7 545 36 392 21 420 57 812 (15 778) 7 619 Net income 10 000 $ 38 599 $ (15 778) $ 17 619 $ 212 347 $ 844 700 $ 22 812 Net working capital Additions to property and equipment Bonds payable from operating revenues Total assets Total equity 646 594 55 000 2 645 230 Note 11: DEFERRED COMPENSATION PLAN 2 584 132 94 662 4 637 995 26 489 Liquor Store I $116 320 116 320 95 371 20 949 20 949 74 9 239 Liquor Store II $148 458 148 458 129 480 18 978 695 18 283 7 898 1 116 9 014 30 188 27 297 I I I Total I $ 264 778 804 726 26 280 I 4 628 052 22 812 74 9 239 (14 000) (21 000) 1 095 784 I $ 16 188 $190 273 219 523 190 273 $ 6 297 $232 882 268 503 233 776 871 115 224 669 238 433 I I (13 764) 13 630 2 298 I 61 219 30 365 (5 823) 101 689 I I (25 000) I 87 925 I 55 000 I 7 797 740 7 659 045 I The government offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. -18- I I I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 I Note 11: DEFERRED COMPENSATION PLAN - CONTINUED I All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the government in an amount equal to the fair market value of the deferred account for each participant. I The City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. I I The plan assets are on deposit with and managed by trustees other than the City. Each employee has a choice of investment options within the plan. Note 12: DEFINED BENEFIT PENSION PLANS - STATEWIDE I A. Plan Description I All full-time and certain part-time employees of the City of Shorewood are covered by a defined benefit pension plan administered by the Public Employee Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) which is a cost-sharing multiple-employer retirement plan. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. The payroll for employees covered by PERF for the year ended December 31, 1992, was $597,175; the City's total payroll was $718,386. I I PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's average salary for any five successive years of allowable service, age, and years of credit at termination of service. I I Two methods are used to compute benefits for Coordinated and Basic members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For a Coordinated member, the annuity accrual rate is 1 percent of average salary for each of the first 10 years and 1.5 percent for each remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5 percent for Coordinated members. For PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. I I I 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. I I I -19- I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 I B. Contributions Required and Contributions Made I Note 12: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. The City makes annual contributions to the pension plans equal to the amount required by State Statutes. According to Minnesota Statutes Chapter 356.215, Subd. 4(g), the date of full funding required for I the PERF is the year 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rate to a "required" contribution rate. Current combined statutory contribution rates and actuarially required contribution rates for I the plans are as follows: I Statutory Rates Employees Employer Required Rates I PERF (Basic and Coordinated Plans) 4.41% 4.74% 9.95% Total contributions made by the City during fiscal year 1992 were: I Amounts Employees Employer Percentage of Covered Payroll Employees Employer I PERF S 25 261 S 26 753 4.23% 4.48% I The City's contribution for the year ended June 30, 1992 to the PERF represented .025 percent of total contributions required of all participating I entities. C. Fundinq Status and Proqress 1. Pension Benefit Obligations I The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligations for individual employers. I I I The pension benefit obligation as of June 30, 1992, is shown below: (In thousands) PERF I Total pension benefit obligations Net assets available for benefits, at cost (Market Value for PERF = $4,068,082) $4 868 124 3 933 124 I Unfunded pension benefit obligation S 935 000 I -20- I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 I I Note 12: DEFINED BENEFIT PENSION PLAN - STATEWIDE - CONTINUED I The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1992. Net assets available to pay pension benefits were valued as of June 30, 1992. 2. Changes in Benefit provisions I Effective for the June 30, 1992, valuation, legislative activity since the last actuarial valuation resulted in some minor changes in benefit provision for the two funds. These changes did not have a significant impact on the PERF or the PEPFF. I D. Ten-Year Historical Trend Information I Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1992. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. I E. Related Party Investments As of June 30, 1992, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. I Note 13: ADVANCE REFUNDING AND DEFEASANCE OF DEBT Advance Refundinq Issues - Prior Years I I On April 29, 1987, the City issued general obligation refunding bonds in the amount of $875,000 to advance refund $1,250,000 outstanding 1984 general obligation bonds. The proceeds of the refunding issue plus additional cash from the debt service have been placed in an irrevocable escrow account and have been invested in U.S. Government obligations. The maturities of these investments coincide with the principal and interest payment dates of the refunded bonds and have been certified to be sufficient to pay all principal and interest on the refunded bonds when due, as required by applicable laws. Accordingly, the original refunded bonds have been removed and the new advance refunding bonds are reported on the financial statements. The City remains contingently liable in the remote possibility that the escrow account is insufficient to pay the refunded bonds. The balance of the refunded bonds outstanding at December 31, 1992 to be paid from the escrow is $755,000. During 1989, the City defeased the following bond issues: $2,300,000 G.O. Sewer Improvement Bonds dated June 1, 1972 $1,600,000 G.O. Sewer Improvement Bonds dated November 1, 1972 I I I I The City provided the cash from the debt service funds which was placed in an irrevocable escrow agreement and invested in U.S. Government Securities. The maturities of these investments coincide with the principal and interest payment dates of the defeased bond issues. Accordingly, the defeased bond issues are not reported as a liability of the City. The City does, however, remain contingently liable in the remote possibility that the escrow account is insufficient to pay the defeased bonds. The balance of the bonds was paid from the escrow in 1992. I I I I -21- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 I I Note 14: TAX INCREMENT REVENUE BONDS I During 1991, the City issued $920,000 Tax Increment Revenue Bonds. The proceeds of the issue will be used to pay for public improvements stipulated in the development agreements. The bond proceeds and related improvement costs are reported in the Water ford III Tax Increment Improvement Capital Projects Fund. The bonds were issued at par value not to exceed $920,000. The bonds are not a general obligation of the City and are not backed by the full faith and credit or taxing powers of the City. The bonds are payable solely from the tax increments I from the City's Tax Increment Financing District No.1. In addition, upon completion of the project, all excess bond proceeds will be repaid to the holder of the bonds as principal reduction. Interest at a rate of nine percent will accrue from the date of issuance of the bonds but will not be payable until tax increment is available at which time the increment will first be applied to the accrued interest. I I The bonds payable are reported as a liability in the General Long-term Debt I Account Group in the financial statements even though: · The bonds issued are tax increment revenue bonds. . The bonds are not backed by the full faith and credit of the City. I · The bonds will be repaid only to the extent that tax increments are from the Tax Increment Financing District. generated I Note 15: JOINT POWERS AGREEMENT The City of Shorewood participates in a joint powers agreement with the cities ofl Excelsior, Greenwood, and Tonka Bay which establishes the South Lake Minnetonka Public Safety Department for the purpose of providing police protection within the four communities. The agreement creates a coordinating committee, comprised of the mayors of each participating community, as the governing body, which meets I quarterly. Each year the Coordinating committee adopts an operating budget, which is approved by all participating cities. The cost of the budget is divided between the participating cities based upon a five-year average demand for service in each city. The percentage contributed in 1992 by the City of I Shorewood is 41.9%. Any budget shortfall is made up first from department reserves, shortfall assessed to each participating community according to current agreement continues through December 31, 1997. with any excess the formula. The I The Department has accounts payable, and accrued payroll and compensated absences in the General Fund of $124,579, and deferred compensation benefits payable in I the Agency Fund of $93,986 at year end. There is no other current or long-term debt outstanding as of December 31, 1992. The following is a summary of the Department's balance sheet as of December 31, 1992 and the statement of revenue, expenditures and changes in fund balance for the General Fund for the year ended I December 31, 1992. I I I -22- I I I CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1992 I Note 15: JOINT POWERS AGREEMENTS - CONTINUED I SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1992 General Totals General Agency Fixed (Memorandum Onlv) Fund Fund Assets 1992 1991 Total assets $221 482 $ 93 986 $282 516 $597 984 $559 154 Liabilities $124 579 $ 93 986 $ $218 565 $202 727 Fund equity 96 903 282 516 379 419 356 427 Total liabilities and fund equity $221 482 S 93 986 $282 516 $597 984 $559 154 I I I I SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT SUMMARY STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - GENERAL FUND - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 1992 I I I 1992 1991 Variance - Favorable Budqet Actual (Unfavorable) Actual Total revenue $1 000 600 $1 034 892 $ 34 292 $991 016 Total expenditures 1 020 600 999 055 21 545 992 603 Excess of revenue over (under) expenditures $ (20 000) 35 837 $ 55 837 (1 587) Fund balance, January 1 61 066 62 653 Fund balance, December 31 S 96 903 $ 61 066 I I I Note 16: PRIOR YEAR MODIFICATIONS I Certain 1991 balance sheet items have been reclassified in order to conform to the 1992 presentation. These reclassifications do not cause any change to 1991 operating results. The Tax Increment Revenue Bonds were not included in the General Long-term Debt Account Group in 1991. To conform to the 1992 presentation, the 1991 bonds payable have been restated accordingly. I I I I -23- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA THE GENERAL FUND The General Fund is used to account for resources traditionally associated with government which are not required legally or by sound financial management to be accounted for iq( other funds. It normally receives a greater variety and number of taxes and other general revenues than any other fund. The majority of the current day-to-day operations will be. financed from this fund. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit A-1 GENERAL FUND BALANCE SHEET DECEMBER 31, 1992 AND 1991 1992 1991 ASSETS Cash and investments $1 256 778 $1 259 065 Receivables Taxes 107 095 114 469 Accounts 30 592 9 803 Accrued interest 29 695 35 590 Contract 92 229 92 970 Special assessments Delinquent 2 830 Deferred 957 TOTAL ASSETS $1 517 346 $1 514 727 LIABILITIES AND FUND BALANCE LIABILITIES Accounts and contracts payable $ 48 857 $ 32 667 Salaries payable 10 102 27 583 Refundable deposits payable 25 825 31 250 Deferred revenue 174 930 171 034 TOTAL LIABILITIES 259 714 262 534 FUND BALANCE Unreserved Designated for working capital 1 257 632 1 126 793 Designated for equipment and improvements 125 400 TOTAL FUND BALANCE 1 257 632 1 252 193 TOTAL LIABILITIES AND FUND BALANCE $1 517 346 $1 514 727 -24- CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 I GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE I BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1992 (With comparative amounts for the year ended December 31, 1991) 1992 1991 I Variance Favorable I Budoet Actual (Unfavorable) Actual REVENUE General property taxes General property taxes $1 493 644 $1 493 111 $ (533) $1 538 982 I Fiscal disparities 82 085 82 085 78 383 Forfeit tax sales 929 929 9 195 Penalties and interest 33 33 1 314 Total 1 575 729 1 576 158 429 1 627 874 I Licenses and permits Business 10 025 11 100 1 075 8 700 I Nonbusiness 118 500 164 023 45 523 159 860 Total 128 525 175 123 46 598 168 560 Intergovernmental I State Property tax credits 264 934 264 934 137 426 Other 18 750 18 755 5 16 255 I Total 283 684 283 689 5 153 681 Charges for services I General government 9 000 9 311 311 3 111 Parks and recreation 500 508 8 524 Total 9 500 9 819 319 3 635 I Fines 95 000 89 960 (5 040) 101 200 Other revenue I Special assessment 4 336 Interest on investments 52 000 86 206 34 206 101 333 Other 17 000 51 434 34 434 51 496 Total 69 000 137 640 68 640 157 165 I TOTAL REVENUE 2 161 438 2 272 389 110 951 2 212 115 I I I I I -25- I I CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 GENERAL FUND Continued I STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - CONTINUED YEAR ENDED DECEMBER 31, 1992 (With comparative amounts for the year ended December 31, 1991) I 1992 1991 Variance I Favorable Budqet Actual (Unfavorable) Actual EXPENDITURES General government I Mayor and Council Personal services $ 10 170 $ 10 628 $ (458) $ 10 065 Supplies 400 422 (22) 1 481 Other services and charges 37 528 37 036 492 38 703 I Contingency 40 556 40 556 Capital outlay 600 600 Total 89 254 48 686 40 568 50 249 I Administrator Personal services 87 405 81 724 5 681 78 796 Supplies 774 762 12 743 I Other services and charges 6 655 5 746 909 5 685 Capital outlay 1 500 1 496 4 Total 96 334 89 728 6 606 85 224 I Finance Personal services 76 505 72 320 4 185 69 083 Supplies 3 460 3 864 (404) 2 629 I Other services and charges 5 425 4 851 574 3 938 Capital outlay 299 Total 85 390 81 035 4 355 75 949 I Professional services Supplies 800 589 211 1 092 Other services and charges 141 381 167 823 (26 442) 180 016 I Total 142 181 168 412 ( 26 231) 181 108 Planning and zoning Personal services 64 145 79 828 (15 683) 64 509 I Supplies 1 490 1 685 (195) 917 Other services and charges 6 785 5 401 1 384 5 343 Capital outlay 7 700 7 518 182 424 I Total 80 120 94 432 (14 312) 71 193 Municipal building Supplies 8 300 6 581 1 719 2 556 I Other services and charges 89 600 74 968 14 632 88 394 Capital outlay 300 6 693 (6 393) 4 695 Total 98 200 88 242 9 958 95 645 I I I -26- I CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 I GENERAL FUND Continued STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE I BUDGET AND ACTUAL - CONTINUED YEAR ENDED DECEMBER 31, 1992 (With comparative amounts for the year ended December 31, 1991) 1992 1991 I Variance Favorable I Budqet Actual (Unfavorable) Actual EXPENDITURES - CONTINUED General government Other general government I services Personal services $ 57 252 $ 63 949 $ (6 697) $ 75 137 Supplies 13 295 12 020 1 275 12 682 Other services and charges 11 220 7 581 3 639 17 965 I Total 81 767 83 550 (1 783) 105 784 Total general government 673 246 654 085 19 161 665 152 I Public safety Police protection Supplies 500 430 70 I Other services and charges 391 836 389 181 2 655 383 058 Capital outlay 1 500 Total 392 336 389 611 2 725 384 558 I Fire protection Other services and charges 95 398 95 398 88 527 Protective inspection I Personal services 67 318 56 604 10 714 51 285 Supplies 1 765 1 884 (119 ) 561 Other services and charges 24 350 21 580 2 770 23 412 I Capital outlay 6 000 6 000 Total 99 433 86 068 13 365 75 258 Total public safety 587 167 571 077 16 090 548 343 I Public works General maintenance I Personal services 112 146 141 608 (29 462) 110 753 Supplies 35 050 29 124 5 926 7 123 Other services and charges 15 200 13 476 1 724 40 784 Capital outlay 9 092 (9 092) 25 015 I Total 162 396 193 300 (30 904) 183 675 Streets and roadways I Personal services 82 814 76 708 6 106 67 983 Supplies 62 000 60 198 1 802 16 540 Other services and charges 4 100 2 248 1 852 2 030 Capital outlay 24 005 (24 005) 6 980 I Total 148 914 163 159 (14 245) 93 533 Snow and ice removal I Personal services 22 066 12 971 9 095 29 761 Supplies 13 000 12 882 118 12 350 Total 35 066 25 853 9 213 42 111 I -27- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit A-2 GENERAL FUND Continued STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - CONTINUED YEAR ENDED DECEMBER 31, 1992 (With comparative amounts for the year ended December 31, 1991) 1992 1991 Variance Favorable (Unfavorable) Budqet Actual EXPENDITURES - CONTINUED Public works Traffic control Supplies Other services and charges $ 5 500 $ 3 505 29 500 23 916 Total 35 000 Sanitation and waste removal Personal services Other services and charges 610 4 000 Total 4 610 Tree maintenance Personal services Other services and charges 13 187 12 200 Total 25 387 Total public works 411 373 Parks and recreation Personal services Supplies Other services and charges Capital outlay 85 802 20 850 33 450 14 750 Total parks and recreation 154 852 TOTAL EXPENDITURES 1 826 638 EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out 334 800 35 000 (532 000) TOTAL OTHER FINANCING SOURCES (USES) (497 000) EXCESS REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (162 200) FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 -28- 27 421 2 886 3 174 6 060 6 315 11 907 18 222 434 015 64 610 20 120 25 344 6 099 116 173 1 775 350 497 039 35 000 (526 600) (491 600) 5 439 1 252 193 $1 257 632 Actual $ 1 995 5 584 $ 3 059 22 841 7 579 25 900 (2 276) 826 1 508 4 007 (1 450) 5 515 6 872 293 13 320 11 352 7 165 24 672 (22 642) 375 406 21 192 730 8 106 8 651 78 141 10 645 25 732 27 650 38 679 142 168 51 288 1 731 069 162 239 481 046 5 400 25 000 (510 712) 5 400 (485 712) $ 167 639 (4 666) 1 256 859 $1 252 193 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA DEBT SERVICE FUNDS Debt service funds are used to accountfor the payment oflnterest and principal on long- term general obligation debt other than debt issued for and serviced primarily by enterprise funds. 1984 Improvement (1987 Refundinr) ~ - This fund was established to account for the accumulation of resources for the payment of interest and principal on 1;)onds issued for 1984 street and utility improvements. Shorewood Oaks Fund - This fund was established to account for the accumulation of resources for the payment of interest and principal on bonds issued for street and utility improvements in the Shorewood Oaks development. 1971 and 1972 Sewer Improvement Fund - This f\lnd was establisl1ed1 to account for the accumulation of resources for the payment of interest and principal on bonds issued for 1971 and 1972 sanitary sewer improvements. 1974 Sewer Improvement Fund. - This fund was established to account for the accumulation of resources for the payment of interest and principal on bonds issued for 1974 sanitary sewer improvements. Southeast Water (1986 Im>>rovementl Fund - This fund was established. to account for the accumulation of resources for the payment of interest and principal on bonps issued for 1986 water improvements in the Southeast area of the iCity. 1991 Im>>rovement and Refundine Fund - This fund was established to account for the accumulation of resources for the payment of interest and principal on bonds issued for the SE water treatment plant, Pine Bend improvements, Church ROad improvements, and to refund the 1986 improvement bonds on the call date. . Shady Hills Storm Sewer Improvement Fund - This fund was established to account for the accumulation of resources for payment of interest and principal on bonds issued for the Shady Hills Storm Sewer Improvements. I CITY OF SHOREWOOD, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1992 (With comparative totals as of December 31, 1991) I ASSETS Cash and investments Receivables Taxes Accrued interest Special assessments Delinquent Deferred 1984 Improvement (1987 Refundinq) 1971 and 1972 Sewer Shorewood Oaks Improvement I $479 893 $ 845 848 $ 2 215 I 8 535 14 256 72 I 70 500 40 927 231 553 I TOTAL ASSETS $558 928 $1 132 584 $ 2 287 LIABILITIES AND FUND BALANCE LIABILITIES Deferred revenue I $ 70 500 $ 264 192 $ I FUND BALANCE Reserved for debt service Unreserved - designated for fiscal fees 488 428 868 392 2 287 I TOTAL FUND BALANCE 488 428 868 392 2 287 TOTAL LIABILITIES AND FUND BALANCE $558 928 $1 132 584 $ 2 287 I I I I I I I I I -29- I I I Exhibit B-1 I Southeast 1991 1974 Water Improvement Shady Hills Sewer (1986 and Storm Sewer Total I Improvement Improvement) Refundinq Improvement 1992 1991 $ 35 246 $ $ 339 848 $ 2 332 $1 705 382 $2 265 477 I 95 95 26 948 5 505 120 29 436 39 550 2 569 1 110 44 606 3 534 I 26 496 679 538 1 008 087 1 150 939 $ 65 259 $ $1 026 001 $ 2 547 $2 787 606 $3 459 526 I $ 27 588 $ $ 680 297 $ $1 042 577 $1 145 040 I 37 671 345 704 2 547 1 742 742 2 311 859 I 2 287 2 627 37 671 345 704 2 547 1 745 029 2 314 486 I $ 65 259 $ $1 026 001 $ 2 547 $2 787 606 $3 459 526 I I I I I I I I I -29- CITY OF SHOREWOOD, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1992 (With comparative totals for the year ended December 31, 1991) REVENUE General property taxes Miscellaneous Special assessments Interest on investments 1984 Improvement (1987 Refundinq) 1971 and 1972 Sewer Shorewood Oaks Improvement $ $ $ 17 819 23 534 137 049 43 394 125 TOTAL REVENUE 41 353 180 443 125 EXPENDITURES Debt Service Principal Interest and service charges 65 000 35 923 85 000 59 014 465 TOTAL EXPENDITURES 100 923 144 014 465 EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Proceeds of bonds issued (59 570) 36 429 (340) EXCESS REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (59 570) 547 998 36 429 (340) 2 627 FUND BALANCE, JANUARY 1 831 963 FUND EQUITY TRANSFER FUND BALANCE, DECEMBER 31 $488 428 $868 392 $ 2 287 -30- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS Capital projects funds are used to account for the acquisition and construction 9f major capital facilities other than those fmanced by enterprise funds. Street Reconstroction Fund - This fund was established for the purpose of funding the periodic reconstruction of City streets and roadways. Callital Inwrovements FQn~ - This fund.was established toiaccount for various capital improvement projects which may be financed without the need to issue bonds. Park Capital Improvement Fund - This fund accounts for park land acquisition and other capital improvements in the City parks. Waterford ill Tax Increment Improvement Fund - This fund was established to account for proceeds of tax increment bonds sold for the construction of an intersection at State Ttunk Highway 7 and Old Market Road and accompanying improvetrtents within Tax. Increrltent District No.. 1. Equipment Re>>lacement Fund - Thi~ fund was established for the purpose of funding the replacement of capital equipment.' Public W orks Facility Fund - This fund was established to account for the construction of a public works facility and salt-sand building, and accompanying site improvements. SE Water Treatment Plant Construction Fund - .This fund was established to account for the proceeds of bonds sold for the construction of a water treatment plant in the southeast area of the City. Pine Bend Improvement Fund - This fund was established to account for the proceeds of bonds sold for the construction of PiheBend improvements. Church Road Improvem~nt ]fund - This fund was established to account for the proceeds of bonds sold for the construction of Church Road improvetpents. Shady.Hills Storm Sewer lQ:t'prov~ment Fund. - This"fund was established to account for the proceeds of bonds sold for the construction of Shady Hills. .Storm ~wer improvements. Silverwood Park Gradina Fund - This fund was established to account for the construction of a pond and for site grading in Silverwood Park. CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1992 (With comparative totals as of December 31, 1991) Waterford Park III Tax Street Capital Capital Increment Equipment Reconstruction Improvements Improvement Improvement Replacement ASSETS Cash and investments $312 000 $123 020 $ 3 445 $127 723 $ 81 470 Receivables Accounts 52 810 Accrued interest 9 886 898 679 1 644 Special assessments Delinquent 25 038 Deferred TOTAL ASSETS $312 000 $157 944 $ 4 343 $181 212 $ 83 114 LIABILITIES AND FUND BALANCE LIABILITIES Accounts and contracts payable $ $ $ $ 81 525 $ Deferred revenue 16 741 TOTAL LIABILITIES 16 741 81 525 FUND BALANCE Unreserved Designated 312 000 141 203 4 343 99 687 83 114 Undesignated TOTAL FUND BALANCE 312 000 141 203 4 343 99 687 83 114 TOTAL LIABILITIES AND FUND BALANCE $312 000 $157 944 $ 4 343 $181 212 $ 83 114 I I I I I I I I I I I I I I I I I I -31- I I I I I I I I I I I I I I I I I I I I Exhibit C-l SE Water Public Treatment Shady Hills Works Plant Pine Bend Church Road Storm Sewer Silverwood Total Facilitv Construction Improvement Improvement Improvement Park Gradinq 1992 1991 $ 81 879 $ $ $ 22 632 $ $ 29 740 $781 909 $1 208 873 52 810 1 963 15 070 18 121 25 038 24 174 100 010 S 81 879 $ $ $ 24 595 $ S 29 740 $874 827 $1 351 178 $ 84 642 $ $ $ 6 309 $ $ 29 145 $201 621 $ 69 392 16 741 120 006 84 642 6 309 29 145 218 362 189 398 18 286 595 659 228 1 161 780 (2 763) (2 763) (2 763) 18 286 595 656 465 1 161 780 $ 81 879 $ $ $ 24 595 $ $ 29 740 $874 827 $1 351 178 -31- I CITY OF SHOREWOOD, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1992 (With comparative totals for the year ended December 31, 1991) Park Street Capital Capital Reconstruction Improvements Improvement REVENUE Intergovernmental $ Miscellaneous Special assessments Interest on investments other Park dedication fees Donations Other TOTAL REVENUE EXPENDITURES Capital outlay Professional services Construction costs TOTAL EXPENDITURES EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES Proceeds of bonds issued Operating transfers in Operating transfers out 312 000 TOTAL OTHER FINANCING SOURCES 312 000 EXCESS REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES 312 000 FUND BALANCE, JANUARY 1 FUND EQUITY TRANSFER FUND BALANCE, DECEMBER 31 $312 000 $ 108 426 30 210 138 636 138 636 204 600 (700 000) (495 400) (356 764) 497 967 $141 203 -32- $ 2 860 30 747 1 050 34 657 34 657 (60 000) (60 000) (25 343) 29 686 $ 4 343 Water ford III Tax Increment Improvement $555 970 555 970 64 434 422 609 487 043 68 927 68 927 30 760 $ 99 687 I I Equipment Replacement I $ 6 641 I I I 6 641 28 527 I 28 527 (21 886) I I I (21 886) I 105 000 I S 83 114 I I I I I I I /1 I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD,~S()TA ENTERPRISE FUNDS ,- ,-. ,/) (- Enterprise funds are used to account for operations that ~e financed and operated in ,a manner similar to private busineSs, where the costs of providing services to the' general public are financed primarily through user charges. Water Fund - This f~nd is used to 'account for the activities of thlCit~iwater;system. Sewer Fund - This fund is, used to account for' the activities Qf the CitY.. sanitary sewer system. R~yennr Fund - This fund is used to account for theactivi~es of the CitY recycling program. LiquorFund- This fund is used to account for the~ctivitiesof the City's off-saleliqUQr operation. The operation consists of two off-sale liquor store sites. A portion of the net . income frQm the operation is used to fund general fund activ\ties. . '\ / CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1992 (With comparative totals as of December 31, 1991) I I Water Sewer I ASSETS CURRENT ASSETS Cash and investments Receivables Taxes Accounts Accrued interest Special assessments Delinquent Deferred Inventories, at cost Prepaid items $ 171 637 $ 661 477 1 037 34 891 142 560 2 375 12 299 I 1 740 8 699 12 482 25 306 I 4 283 4 302 I TOTAL CURRENT ASSETS 228 445 854 643 TOTAL PROPERTY AND EQUIPMENT 2 939 491 7 167 455 (523 440) (3 384 103) 2 416 051 3 783 352 I PROPERTY AND EQUIPMENT, AT COST LESS ACCUMULATED DEPRECIATION OTHER ASSETS Bond discount, net of amortization I 734 TOTAL ASSETS $2 645 230 $4 637 995 I LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and contracts payable Salaries and compensated absences payable Current portion of long-term debt $ 5 982 $ 116 10 000 9 827 116 I TOTAL CURRENT LIABILITIES 16 098 9 943 I LONG-TERM LIABILITIES Bonds payable less current portion above 45 000 I TOTAL LIABILITIES 61 098 9 943 TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY 2 756 610 4 103 785 (172 478) 524 267 2 584 132 4 628 052 I FUND EQUITY Contributed capital Retained earnings (deficit) - unreserved I $2 645 230 $4 637 995 I I I I -33- I I CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1992 (With comparative totals for the year ended December 31, 1991) Water OPERATING REVENUE Sales Less cost of sales $ GROSS PROFIT Charges for services Permits and connection fees 179 411 20 480 199 891 7 688 5 087 5 102 61 128 640 47 861 1 017 5 472 13 570 31 470 GROSS PROFIT AND REVENUE OPERATING EXPENSES Personal services Supplies Repairs and maintenance Depreciation Professional services Contracted services Communication Insurance Water purchases Utilities Metropolitan Waste Control Commission disposal charges Rent Advertising Other 7 807 186 842 13 049 13 630 2 298 7 616 7 829 (5 823) 25 550 38 599 TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) OTHER REVENUE (EXPENSES) General property taxes Property tax credits Interest on investments Other income Interest expense TOTAL OTHER REVENUE (EXPENSES) INCOME (LOSS) BEFORE TRANSFERS OPERATING TRANSFERS FROM (TO) OTHER FUNDS NET INCOME (LOSS) RETAINED EARNINGS (DEFICIT), JANUARY 1 RETAINED EARNINGS (DEFICIT), DECEMBER 31 38 599 (211 077) $(172 478) -34- I Sewer I $ I 554 334 5 800 560 134 17 333 1 868 12 061 176 610 4 786 27 171 34 4 331 4 603 376 668 8 259 633 724 (73 590) I I I I I I I 36 392 21 420 I 57 812 I (15 778) I (15 778) 540 045 I $524 267 I I I I I I Exhibit D-2 I Liquor Fund Total Recvclino store I store II 1992 1991 $ $577 225 $800 685 $1 377 910 $1 455 332 460 905 652 227 1 113 132 1 147 109 I 116 320 148 458 264 778 308 223 70 981 804 726 686 820 I 26 280 29 981 70 981 116 320 148 458 1 095 784 1 025 024 I 546 58 555 79 389 163 511 144 076 3 550 1 518 3 208 15 231 18 386 17 163 18 040 I 695 238 433 232 831 959 959 7 344 10 108 58 015 1 200 427 134 674 149 610 1 051 1 098 I 4 436 6 518 20 757 20 448 13 570 14 400 5 181 7 114 48 368 38 066 I 376 668 307 116 17 904 27 255 45 159 45 106 3 640 3 576 7 216 6 199 1 325 1 978 1 034 20 403 25 833 I 63 436 95 371 130 175 1 109 548 1 031 317 7 545 20 949 18 283 (13 764) (6 293) I 13 630 16 579 2 298 1 220 I 74 9 239 7 898 61 219 60 785 1 116 30 365 10 475 (5 823) (6 493) I 74 9 239 9 014 101 689 82 566 7 619 30 188 27 297 87 925 76 273 I 10 000 (14 000) (21 000) (25 000) (45 000) 17 619 16 188 6 297 62 925 31 273 I 5 193 174 085 227 479 735 725 704 452 $ 22 812 $190 273 $233 776 $ 798 650 $ 735 725 I I I -34- I CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 1992 (With comparative totals for the year ended December CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Other income related to operations Adjustments to reconcile operating income to net cash provided by operating activities Depreciation and amortization (Increase) decrease in assets - Taxes Accounts Accrued interest Special assessments Inventory Prepaid items Increase (decrease) in liabilities - Accounts payable Salaries and compensated absences payable Deferred revenue CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NON CAP I TAL FINANCING ACTIVITIES Operating transfers from (to) other funds CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Bond principal paid Interest paid on revenue bonds Acquisition of property and equipment Property taxes levied for debt service CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Property and equipment acquired from other funds -35- I 31, 1991) Water Sewer $ 13 049 $(73 590) 7 829 21 420 61 128 176 610 76 (333) (14 140) (808) 419 1 012 (479) 332 (831) (3 087) 2 846 (39) (38) 79 159 112 217 I I I I I I I I (10 000) (5 823) 15 928 105 7 616 86 880 84 757 $171 637 (94 662) I (94 662) I 36 392 I 53 947 607 530 I I $661 477 $646 575 $ I I I I I CITY OF SHOREWOOD, MINNESOTA WATER FUND COMPARATIVE BALANCE SHEET DECEMBER 31, 1992 AND 1991 ASSETS CURRENT ASSETS Cash and investments Receivables Taxes Accounts Accrued interest Special assessments Delinquent Deferred Prepaid items TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT, AT COST LESS ACCUMULATED DEPRECIATION TOTAL PROPERTY AND EQUIPMENT OTHER ASSETS Bond discount, net of amortization TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and contracts payable Salaries and compensated absences payable Current portion of long-term debt TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES Bonds payable less current portion above TOTAL LIABILITIES FUND EQUITY Contributed capital Retained earnings (deficit) TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY -36- Exhibit D-4 I I 1992 1991 $ 171 637 $ 84 757 1 037 1 113 34 891 34 558 2 375 1 567 1 740 490 12 482 14 744 4 283 4 615 228 445 141 844 2 939 491 2 292 916 (523 440) (462 497) 2 416 051 1 830 419 734 919 $2 645 230 $1 973 182 I I I I I I I $ 5 982 $ 9 069 116 154 10 000 10 000 16 098 19 223 45 000 55 000 61 098 74 223 2 756 610 2 110 036 (172 478) (211 077) 2 584 132 1 898 959 $2 645 230 $1 973 182 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-5 WATER FUND COMPARATIVE STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1992 AND 1991 1992 1991 OPERATING REVENUE Charges for services $ 179 411 $ 149 088 Permits and connection fees 20 480 23 481 TOTAL OPERATING REVENUE 199 891 172 569 OPERATING EXPENSES Personal services 7 688 5 242 Supplies 5 087 11 728 Repairs and maintenance 5 102 13 206 Depreciation and amortization 61 128 56 586 Professional services 640 702 Contracted services 47 861 51 166 Communication 1 017 1 098 Insurance 5 472 4 811 Water purchases 13 570 14 400 Utilities 31 470 23 315 Other 7 807 946 TOTAL OPERATING EXPENSES 186 842 183 200 OPERATING INCOME (LOSS) 13 049 110 631) OTHER REVENUE (EXPENSES) General property taxes 13 630 16 579 Property tax credits 2 298 1 220 Interest on investments 7 616 4 723 Other income 7 829 6 600 Interest expense (5 823) (6 493) TOTAL OTHER REVENUE (EXPENSES) 25 550 22 629 INCOME BEFORE TRANSFERS 38 599 11 998 OPERATING TRANSFERS TO OTHER FUNDS (20 000) NET INCOME (LOSS) 38 599 (8 002) RETAINED EARNINGS (DEFICIT) , JANUARY 1 (211 077) (203 075) RETAINED EARNINGS (DEFICIT) , DECEMBER 31 $1l72 478) $(211 077) -37- CITY OF SHOREWOOD, MINNESOTA WATER FUND COMPARATIVE STATEMENT OF CASH FLOWS YEARS ENDED DECEMBER 31, 1992 AND 1991 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Other income related to operations Adjustments to reconcile operating income to net cash provided by operating activities Depreciation and amortization (Increase) decrease in assets - Taxes Accounts Accrued interest Special assessments Prepaid items Increase (decrease) in liabilities - Accounts payable Salaries and compensated absences payable Deferred revenue CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers to other funds CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Bond principal paid Interest paid on revenue bonds Acquisition of property and equipment Property taxes levied for debt service CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Property and equipment acquired from other funds -38- Exhibit D-6 I I 1992 1991 $ 13 049 $(10 631) 7 829 6 600 61 128 56 586 76 (425) (333) (1 295) (808) (380) 1 012 2 892 332 (977 ) (3 087) 3 616 (39) 41 (456) 79 159 55 571 ( 20 000) I I I I I I I (10 000) (10 000) (5 823) (6 493) (375) 15 928 17 799 105 931 7 616 4 723 86 880 41 225 84 757 43 532 $171 637 $ 84 757 I I I I $646 575 I $ 85 237 I I I I I I CITY OF SHOREWOOD, MINNESOTA SEWER FUND COMPARATIVE BALANCE SHEET DECEMBER 31, 1992 AND 1991 I I ASSETS CURRENT ASSE:TS Cash and i.nvestments Receivables Accounts Accrued interest Special assessments Delinquent Deferred Prepaid items I I I I TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT, AT COST LESS ACCUMULATED DEPRECIATION TOTAL PROPERTY AND EQUIPMENT TOTAL ASSETS I I LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and contracts payable Salaries and compensated absences payable TOTAL CURRENT LIABILITIES I I I I I I FUND EQUITY Contributed capital Retained earnings - unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY I I I -39- I Exhibit D-7 1992 1991 $ 661 477 $ 607 530 142 560 128 420 12 299 12 718 8 699 8 624 25 306 24 902 4 302 3 471 854 643 785 665 7 167 455 7 072 793 (3 384 103) (3 207 493) 3 783 352 3 865 300 $4 637 995 $4 650 965 $ 9 827 $ 6 981 116 154 9 943 7 135 4 103 785 4 103 785 524 267 540 045 4 628 052 4 643 830 $4 637 995 $4 650 965 I CITY OF SHOREWOOD, MINNESOTA Exhibit D-8 SEWER FUND COMPARATIVE STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1992 AND 1991 1992 OPERATING REVENUE Charges for services Permits and connection fees $554 334 5 800 TOTAL OPERATING REVENUE 560 134 OPERATING EXPENSES Personal services Supplies Repairs and maintenance Depreciation Professional services Contracted services Communication Insurance Utilities Metropolitan Waste Control Commission disposal charges Other 17 333 1 868 12 061 176 610 4 786 27 171 34 4 331 4 603 376 668 8 259 TOTAL OPERATING EXPENSES 633 724 OPERATING INCOME (LOSS) OTHER REVENUE (EXPENSES) Interest on investments Other income (73 590) 36 392 21 420 TOTAL OTHER REVENUE (EXPENSES) NET INCOME (LOSS) RETAINED EARNINGS, JANUARY 1 57 812 (15 778) 540 045 RETAINED EARNINGS, DECEMBER 31 $524 267 -40- I 1991 I $474 451 6 500 480 951 II 12 230 1 633 4 834 175 628 7 166 37 464 I I 3 546 4 054 307 116 15 151 I 568 822 I (87 871) 38 396 I 38 396 I (49 475) 589 520 I $540 045 I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SEWER FUND COMPARATIVE STATEMENT OF CASH FLOWS YEARS ENDED DECEMBER 31, 1992 AND 1991 Exhibit D-9 1992 1991 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ (73 590) $(87 871) Other income related to operations 21 420 Adjustments to reconcile operating income to net c,ash provided by operating activities Deprecia'tion 176 610 175 628 ( I ncreas1e) decrease in assets - Accounts (14 140) (2 052) Accrued interest 419 (355) Special assessments (479) 8 676 Prepaid items (831) (619) Increase (decrease) in liabilities - Accounts payable 2 846 (4 681) Salariles and compensated absences payable (38) (199) Deferred revenue (744 ) CASH PROVIDED BY OPERATING ACTIVITIES 112 217 87 783 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of property and equipment (94 662) (52 375) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 36 392 38 396 INCREASE IN CASH AND CASH EQUIVALENTS 53 947 73 804 CASH AND CASH EQUIVALENTS, JANUARY 1 607 530 533 726 CASH AND CASH EQUIVALENTS, DECEMBER 31 $661 477 $607 530 NONCASH CAPrrAL AND RELATED FINANCING ACTIVITIES Property and equipment acquired from other funds $ $ 66 284 -41- CITY OF SHOREWOOD, MINNESOTA RECYCLING FUND COMPARATIVE BALANCE SHEET DECEMBER 31, 1992 AND 1991 ASSETS Cash and investments Receivables Accounts Accrued interest Special assessments Delinquent Deferred TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES Accounts and contracts payable FUND EQUITY Retained earnings - unreserved TOTAL LIABILITIES AND FUND EQUITY -42- Exhibit 0-10 I I 1992 1991 S 25 933 S 8 668 140 316 97 51 365 257 S 26 489 S 9 338 I I I I S 3 677 S 4 145 I 22 812 5 193 S 26 489 I S 9 338 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit D-11 RECYCLING FUND COMPARATIVE STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1992 AND 1991 1992 1991 OPERATING REVENUE Charges for services S 70 981 S 63 281 OPERATING EXPENSES Personal services 546 Supplies 3 550 Repairs and maintenance Contracted services 58 015 58 521 Other 1 325 59 TO'TAL OPERATING EXPENSES 63 436 58 580 OP:ERATING INCOME 7 545 4 701 OTHER REVENU:E (EXPENSES) Interest on investments 74 492 INCOME BEFORE TRANSFERS 7 619 5 193 OPERATING TltANSFERS FROM (TO) OTHER FUNDS 10 000 NET INCOME 17 619 5 193 RETAINED EARNINGS, JANUARY 1 5 193 RETAINED EARNINGS, DECEMBER 31 S 22 812 S 5 193 -43- CITY OF SHOREWOOD, MINNESOTA RECYCLING FUND COMPARATIVE STATEMENT OF CASH FLOWS YEARS ENDED DECEMBER 31, 1992 AND 1991 CASH FLOWS FROM OPERATING ACTIVITIES Operating income Adjustments to reconcile operating income to net cash provided by operating activities - (Increase) decrease in assets - Accounts Accrued interest Special assessments Increase (decrease) in liabilities - Accounts payable CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NON CAP I TAL FINANCING ACTIVITIES Operating transfers from (to) other funds CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 -44- Exhibit 0-12 I I 1992 I 1991 $ 7 545 $ 4 701 I 176 (316) 97 (97) (159) (257) (468) 4 145 7 191 8 176 10 000 74 492 17 265 8 668 8 668 S 25 933 S 8 668 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit 0-13 LIQUOR FUND COMPARATIVE BALANCE SHEET DECEMBER 31, 1992 AND 1991 Store I Store II 1992 1991 1992 1991 ASSETS CURRENT ASSE'rS Cash and investments $166 849 $153 277 $138 066 $148 985 Receivables Accounts 104 84 155 125 Accrued interest 3 100 2 930 2 648 2 597 Inventories, at cost 46 080 47 220 121 888 131 693 Prepaid items 3 390 3 214 4 852 4 753 TOTAL CURRENT ASSETS 219 523 206 725 267 609 288 153 PROPERTY AND EQUIPMENT, AT COST 24 917 24 917 9 161 9 161 LESS ACCUMUL;!l.TED DEPRECIATION (24 917) (24 917) (8 267) (7 571) TOTAL PROPERTY AND EQUIPMENT 894 1 590 TOTAL ASSETS $219 523 $206 725 $268 503 $289 743 LIABILITIES j~D RETAINED EARNINGS CURRENT LIABILITIES Accounts and contracts payable $ 28 450 $ 30 202 $ 33 551 $ 58 328 Salaries and compensated absences payable 800 2 438 1 176 3 936 TOTAL CURRENT LIABILITIES 29 250 32 640 34 727 62 264 RETAINED EARNINGS Unreserved 190 273 174 085 233 776 227 479 TOTAL LIABILITIES AND RETAINED EARNINGS $219 523 $206 725 $268 503 $289 743 -45- CITY OF SHOREWOOD, MINNESOTA Exhibit D-14 I LIQUOR FUND COMPARATIVE STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS I YEARS ENDED DECEMBER 31, 1992 AND 1991 Store I Store II I 1992 1991 1992 1991 OPERATING REVENUE Sales $577 225 $606 845 $800 685 $848 487 Less cost of sales 460 905 475 120 652 227 671 989 I GROSS PROFIT 116 320 131 725 148 458 176 498 OPERATING EXPENSES I Personal services 58 555 51 130 79 389 75 474 Supplies 1 518 1 732 3 208 3 293 Depreciation 695 617 Professional services 959 1 120 959 1 120 I Contracted services 1 200 1 571 427 888 Insurance 4 436 4 907 6 518 7 184 Utilities 5 181 4 793 7 114 5 904 Rent 17 904 19 726 27 255 25 380 I Advertising 3 640 2 873 3 576 3 326 Other 1 978 4 198 1 034 5 479 TOTAL OPERATING EXPENSES 95 371 92 050 130 175 128 665 I OPERATING INCOME 20 949 39 675 18 283 47 833 OTHER REVENUE (EXPENSES) I Interest on investments 9 239 9 127 7 898 8 047 Other income 3 239 1 116 636 TOTAL OTHER REVENUE I (EXPENSES) 9 239 12 366 9 014 8 683 INCOME BEFORE TRANSFERS 30 188 52 041 27 297 56 516 OPERATING TRANSFERS TO OTHER FUNDS (14 000) (10 000) 121 000) (15 000) I NET INCOME 16 188 42 041 6 297 41 516 RETAINED EARNINGS, JANUARY 1 174 085 132 044 227 479 185 963 I RETAINED EARNINGS, DECEMBER 31 $190 273 $174 085 $233 776 $227 479 I I I I I I -46- I I I CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMPARATIVE STATEMENT OF CASH FLOWS YEARS ENDED DECEMBER 31, 1992 AND 1991 I CASH FLOWS FROM OPERATING ACTIVITIES Operating income Other income related to operations Adjustments to reconcile operating income to net cash provided by operating activities Depreciation (Increase) decrease in assets - Accoun'ts Accrued interest Inventory Prepaid items Increase (decrease) in liabilities - Accourots payable Salaries and compensated absences payable I I I I I CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers to other funds I CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of property and equipment I I CASH FLOWS F]~OM INVESTING ACTIVITIES Interest on investments INCREASE IN CASH AND CASH EQUIVALENTS I CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 I I I I I I I Store I 1992 1991 $ 20 949 (20) (170) 1 140 (176) (1 752) (1 638) $ 39 675 3 239 (84) (604) (3 713) 1 000 11 763 (179) Exhibit 0-15 Store II 1992 1991 $ 18 283 1 116 (30) (51) 9 806 (99) (24 777) (2 760) 695 $ 47 833 636 617 (125) (664) (14 633) 1 430 34 032 1 156 18 333 51 097 2 183 70 282 (14 000) (10 000) (21 000) (15 000) (425) 9 239 9 127 7 898 8 047 13 572 50 224 (10 919) 62 904 153 277 103 053 148 985 86 081 $166 849 $153 277 $138 066 $148 985 -47- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA AGENCY FUNDS Agency funds are established to account for assets held by the City as an agent fot others. Deferred Com,pensation ~nd - This fund is used to account for employee payroll deferments and the related liability, that are deposited, with outside companies in accordance with the provisions of Internal Revenue Code Section .457. . I I CITY OF SHOREWOOD, MINNESOTA DEFERRED COMPENSATION AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED DECEMBER 31, 1992 I I ASSETS Investments for deferred compensation plan, at market I LIABILITIES Deferred compensation funds held fo.r participants I I I I I I I I I I I I I I Balance Januarv 1 S 67 294 S 67 294 -48- Additions S 19 182 S 19 182 Deductions s s Exhibit E-1 Balance December 31 S 86 476 S 86 476 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP General fixed assets are those fixed assets Cofa governmental jurisdiction which are. not accounted for in an enterprise fund. To be classified as a fix~ asSet in thi~ category, I. a specific piece of property must meetthree attributes: . 1. Tangible natute 2. A lifeJonger than the current fiscal year 3 ..~ significant value .. I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit F-1 GENERAL FIXED ASSETS ACCOUNT GROUP COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE DECEMBER 31, 1992 AND 1991 1992 1991 GENERAL FIXED ASSETS Land $ 449 326 $ 449 326 Buildings and structures 1 251 870 504 781 Improvements other than buildings 704 181 554 167 Furniture and equipment 858 894 805 179 ~DTAL GENERAL FIXED ASSETS $3 264 271 $2 313 453 INVESTMENT IN GENERAL FIXED ASSETS General fund $ 858 894 $ 805 179 Capital p:rojects funds 2 405 377 1 508 274 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $3 264 271 $2 313 453 -49- -50- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Exhibit F-3 GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION YEAR ENDED DECEMBER 31, 1992 I I General General Fixed Assets Fixed Assets Januarv 1 Additions Deductions December 31 General government $ 459 475 $ 23 738 $ 674 $ 482 539 Public works 1 007 900 969 526 112 100 1 865 326 Parks 846 078 70 328 916 406 TOTAL GENERAL FIXED ASSETS $2 313 453 $1 063 592 $112 774 $3 264 271 I I I I I I I I I I I I I I I I -51- I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESQTA GENERAL LONG-TERM DEBT ACCOUNT GROUP General obligation bonds arid other forms of long-term debt supported by general revenues are obligations of a governmental unit as a whole and not its individual constituent funds. The amount of unmatured long-term indebtedness whichis backed by the full faith and credit of the government (excluding enterprise fund debt) is recorded and accounted for in a separate self-balancing account group titled the "General Lol1g- Term Debt Account Group. II Also, this debt group includes certain liabilities not expected to be liquidated with expendable available financial resources. I I CITY OF SHOREWOOD, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT DECEMBER 31, 1992 AND 1991 Exhibit G-1 I 1992 1991 AMOUNT AVAILABLE FOR DEBT SERVICE Debt service funds $1 742 742 $2 311 859 I AMOUNTS TO BE PROVIDED Future tax levies, assessments and tax increments I TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED 1 637 712 1 971 051 $3 380 454 $4 282 910 I GENERAL LONG-TERM DEBT PAYABLE Compensated absences payable $ 19 454 $ 16 910 General obligation special assessment bonds 2 441 000 3 346 000 Tax increment revenue bonds 920 000 920 000 TOTAL GENERAL LONG-TERM DEBT PAYABLE $3 380 454 $4 282 910 I I I I I I I I I I I I I -52- CITY OF SHOREWOOD, MINNESOTA SCHEDULE OF BONDS PAYABLE DECEMBER 31, 1992 I I SPECIAL ASSESSMENT BONDS G.O Improvement refunding bonds of 1987 G.O Improvement bonds of 1989 G.O Improvement bonds of 1974 G.O Improvement bonds of 1986 G.O Improvement bonds of 1991 G.O Improvement bonds of 1991 Final Interest Issue Maturity Rates Date Date 5.40-6.60% 4/1/87 2/1/01 6.10-6.50 10/1/89 2/1/03 5.70 1/1/74 1/1/94 6.75-7.90 8/1/86 2/1/02 4.50-5.85 11/1/91 2/1/02 8.00 9/1/91 2/1/97 I I TOTAL I TAX INCREMENT REVENUE BONDS Tax increment revenue bonds of 1991 9.00 5/1/91 8/1/97 I I REVENUE BONDS G.O. Water Revenue bonds 8.50 9/1/80 2/1/97 TOTAL I I I I I I I I I I I -53- I I I Exhibit H-1 Bonds I Authorized 12/31/92 and Issued Redeemed Outstandino $ 875 0010 $ 65 000 $ 550 000 I 1 095 0010 85 000 870 000 1 250 0010 30 000 30 000 985 0010 725 000 960 0010 960 000 I 31 OOQ 31 000 5 196 0010 905 000 2 441 000 I 920 000 920 000 I 140 000 10 000 55 000 I $6 256 OO(~ $ 915 000 $3 416 000 I I I I I I I I I I I -53- CITY OF SHOREWOOD, MINNESOTA SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 1992 Total G.O. Bonds Year Principal Interest 1993 $ 274 500 $ 141 035 1994 276 000 125 456 1995 266 000 110 008 1996 262 000 94 570 1997 242 500 79 065 1998 235 000 64 965 1999 235 000 50 833 2000 230 000 36 653 2001 230 000 22 456 2002 170 000 10 091 2003 75 000 2 437 Total $2 496 000 $ 737 569 * Tax increment collections will be remitted to the bond holders and payments will be applied first to accrued interest. It is anticipated that the 1993 tax increment collections will be applied only to interest payments. -54- I I I I I I I I I I I I I I I I I I I G.O. Water Revenue Bonds Principal Interest $ 10 000 $ 15 000 15 000 15 000 4 675 3 825 2 550 1 275 $ 55 000 $ 12 325 -54- Exhibit I-I Tax Increment Revenue Bonds* Principal Interest $ 200 000 225 000 240 000 255 000 $160 446 78 300 59 850 39 150 17 100 $920 000 $354 846 I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA SECTION III STATISTICAL SECTION I I CITY OF SHOREWOOD, MINNESOTA GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION LAST TEN FISCAL YEARS Table 1 I I Fiscal Total General Public Public Parks and Miscl Year Expenditures Government Safetv Works Recreation Transfers 1983 $ 788 343 $271 057 $294 647 $188 420 $ 34 219 $ 1984 1 203 475 346 048 329 096 485 771 42 560 1985 1 266 606 402 626 367 728 443 774 52 478 1986 1 400 755 419 658 410 016 522 066 49 015 1987 1 651 927 569 098 481 603 532 902 68 324 1988 1 898 594 646 923 523 717 669 990 57 964 1989 1 794 684 610 659 503 542 570 981 83 502 26 000 1990 2 065 011 616 929 532 658 799 543 115 881 1991 2 241 781 665 152 548 343 375 406 142 168 510 712 1992 2 301 950 654 085 571 077 434 015 116 173 526 600 I I I I I I I I I I I I I I I -55- CITY OF SHOREWOOD, MINNESOTA GENERAL FUND REVENUE AND OTHER SOURCES BY SOURCE LAST TEN FISCAL YEARS Table 2 I I I I I I I I I I I I I I I I I I I Total General Licenses Fiscal General Fund Property and Inter- Year Revenues Taxes Permits Governmental Fines Miscellaneous 1983 $ 852 699 $ 414 856 $ 53 606 $259 326 $ 47 544 $ 77 367 1984 1 269 836 801 800 49 030 303 653 64 354 50 999 1985 1 438 991 929 199 71 146 318 676 57 682 62 288 1986 1 652 307 1 040 984 117 050 356 308 70 678 67 287 1987 1 837 056 993 086 282 100 364 022 103 785 94 063 1988 1 984 148 1 087 099 330 408 368 288 91 385 106 968 1989 1 976 961 1 118 886 207 129 405 022 105 244 140 680 1990 2 367 995 1 437 140 203 828 273 780 124 234 329 013 1991 2 237 115 1 627 874 168 560 153 681 101 200 185 800 1992 2 307 389 1 576 158 175 123 283 689 89 960 182 459 -56- I I CITY OF SHOREWOOD, MINNESOTA Table 3 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (1) Collection Collection Percentage of Current Percentage of Prior of Total Fiscal Total Year's of Levy Year's Total Collections Year Levv Levv Collected Levv Collections to Levy 1983 $ 584 959 $ 561 533 96.00% $ 23 007 $ 584 540 99.93% 1984 1 134 014 1 095 150 96.57 18 968 1 114 118 98.25 1985 1 171 628 1 130 776 96.51 25 072 1 155 848 98.65 1986 1 209 261 1 168 941 96.67 42 690 1 211 631 100.20 1987 1 254 420 1 211 819 96.60 32 265 1 244 084 99.18 1988 1 293 689 1 236 536 95.58 27 898 1 264 434 97.74 1989 1 300 881 1 249 332 96.04 46 405 1 295 737 99.61 1990 1 684 576 1 602 385 95.12 48 448 1 650 833 98.00 1991 1 856 988 *1 793 402 96.58 41 801 1 835 203 98.83 1992 1 864 577 1 819 238 97.57 55 917 1 875 155 100.57 I I I I I I (1) * Includes state paid property tax credits Includes $66,971 state aid reduction from the Homestead and Agricultural Credit Aid.. I I I I I I I I I I I -57- CITY OF SHOREWOOD, MINNESOTA ASSESSED VALUATION, TAX LEVIES AND MILL RATES (shown by year of tax collectibility) I I I 1992 1991 1990 1989 (1) (1) (1) Assessed valuation/ Tax capacity $7 681 118 $7 909 001 $7 033 863 $7 705 314 Contribution to fiscal disparities pool (212 697) (227 257) (209 164) (218 604) Receivable from fiscal disparities pool 390 694 388 595 372 707 347 288 Taxable valuation/ Total tax capacity $7 859 115 $8 070 339 $7 197 406 $7 833 998 I I I Tax levies General Debt service $1 840 663 23 914 $1 840 663 16 325 $1 667 451 17 125 $1 282 956 17 925 I Total $1 864 577 $1 856 988 $1 684 576 $1 300 881 I Mill rates/Tax Capacity Rate General Debt service 19.995 .169 20.274 .180 20.093 .206 16.282 .227 I Total 20.164 20.454 20.299 16.509 I I (1) As a result of 1988 legislation assessed valuation has been replaced by tax I capacity valuations. It is calculated based upon a state mandated computation . from the estimated market value. The term, mill rate, has been replaced with the term, tax capacity rate, as a result of the 1988 legislation. 1982-1988 information is stated in terms of assessed valuation and mill rates. 1989-1992 I information is stated in terms of tax capacity and tax capacity rates. I I I I I -58- I I I Table 4 I 1988 1987 1986 1985 1984 1983 I $55 691 698 $52 274 820 $50 700 422 $50 464 722 $47 316 709 $45 876 016 I (1 699 452) (1 457 783) (1 420 050) (1 355 365) (1 274 399) (1 105 205) 2 597 611 2 242 637 1 934 251 1 918 366 1 643 793 1 415 133 I $56 589 857 $53 059 674 $51 214 623 $51 027 723 $47 686 103 $46 185 944 I $ 1 274 189 $ 1 172 220 $ 1 126 436 $ 1 068 803 $ 932 180 $ 542 579 19 500 82 200 82 825 102 825 201 834 42 380 I $ 1 293 689 $ 1 254 420 $ 1 209 261 $ 1 171 628 S 1 134 014 S 584 959 I 22.481 Mills 22.093 Mills 22.020 Mills 20.903 Mills 19.875 Mills 11.746 Mills I .344 1.550 1. 620 2.011 4.304 .918 22.825 Mil~ 23.643 Mills 23.640 Mills 22.914 Mills 24.179 Mills 12.664 Mills I I I I I I I I I -58- CITY OF SHOREWOOD, MINNESOTA PROPERTY TAX MILL RATES/TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS (PER $1000 OF ASSESSED VALUE FOR YEARS 1983-1988 AND TAX CAPACITY IN 1989 - 1992) (1) (1) Year School School Watershed Watershed Taxes District District District District Payable City County No. 276 No. 277 No. 3 No. 4 Misc. 1983 12.664 28.451 57.050 52.870 .086 .346 5.106 1984 24.179 29.689 58.686 54.352 .281 .289 5.318 1985 22.914 29.262 57.417 51. 239 .061 .399 4.391 1986 23.640 29.688 60.209 59.058 .089 .198 5.378 1987 23.643 29.356 62.968 54.982 .133 .474 5.459 1988 22.825 31. 667 65.440 58.550 .092 .570 5.988 1989 16.509 (2 ) 27.101 59.285 49.139 .075 .445 5.387 1990 20.299 (2) 27.916 53.658 43.434 .120 .436 5 . 121 1991 20.454 (2) 30.114 56.401 46.828 .131 .449 6.855 1992 20.164 (2) 34.327 64.530 56.643 .142 .490 5.481 (1) Includes vocational school (2) Information for 1989-1992 is stated in terms of tax capacity rates due to 1988 legislative changes as explained in Table 4. -59- I I I I I I I I I I I I I I I I I I I I I I I School District No. 276, Watershed District No. 3 103.357 118.153 114.045 119.004 121. 559 126.012 108.357 107.114 113.955 124.649 I I I I I I I I I I I I I I I Totals School District No. 276, Watershed District No. 4 103.617 118.161 114.383 119.113 121. 900 126.490 108.727 107.430 114.273 124.997 Table 5 School District No. 277, Watershed District No.3 99.177 113.819 107.867 117.853 113.573 119.122 98.211 96.890 104.382 116.762 -59- I CITY OF SHOREWOOD, MINNESOTA PRINCIPAL TAXPAYERS DECEMBER 31, 1992 Table 6 I I Percentage 1992 Tax of Total Taxpaver Tvpe of Business Capacity Tax Capacity Northern States Power Company Utility $113 953 1. 48% Ryan Construction Company Shopping Center 90 250 1.17 Minnetonka Country Club Country Club 71 548 .93 Minnegasco Utility 65 436 .85 Two S Properties Commercial 43 295 .56 Shorewood YaLcht Club Yacht Club 36 925 .48 Markus Pagel Partnership Commercial 31 268 .41 Individual Residential 29 678 .39 Individual Residential 28 060 .37 Individual Residential 24 928 ~ Total $535 341 6.96% I I I I I I I I I I I I I I I I -60- CITY OF SHOREWOOD, MINNESOTA Table 7 SPECIAL ASSESSMENT LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collection of Collection Percentage Current Percentage of Prior of Total Total Year's of Levy Year's Total Collections Year Levv Levy Collected Levy Collections To Levy 1983 $577 348 $464 559 80.46% $ 89 374 $553 933 95.94% 1984 501 439 412 661 82.30 48 136 460 797 91. 90 1985 468 020 372 783 79.65 71 787 444 570 94.99 1986 678 919 563 150 82.95 216 131 779 281 114.78 1987 551 886 539 633 97.78 32 122 571 755 103.60 1988 644 367 637 874 98.99 33 724 671 598 104.23 1989 500 116 497 733 99.52 66 916 564 649 112.90 1990 457 384 444 080 97.09 53 452 497 532 108.78 1991 365 577 345 886 94.61 28 677 374 563 102.46 1992 362 352 317 103 87.51 19 461 336 564 92.88 I I I I I I I I I I I I I I -61- I I I I I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31, 1992 Table 8 Market Value! $382 656 900 $ 7 653 138 Debt Limit: 2.0% of market value (Note A) Amount of Debt Applicable to Debt Limit: Total Bonded Debt $ 3 416 000 Less: (Note B) Special Assessment Bonds (2 410 000) General Obligation Water Revenue Bonds (55 000) General Obligation Storm Sewer Bonds (31 000) Tax Increment Revenue Bonds (920 000) Total Debt Applicable to Debt Limit Legal Debt Margin $ 7 653 138 Note (A): M.S.A. Section 475.53 (Limit on Net Debt) "Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to 475.75, no municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of 2.0 percent of the market value of taxable property in the municipality." Note (B): M.S.A. Section 162.18 (Bond; Municipal State Aid) "Subdivision 2. Not included in net debt of municipality for purpose of any statutory or charter limitation. Obligations issued hereunder may be authorized by resolution of the governing body without authorization by the electors, and shall not be included in the net debt of the municipality for the purpose of any statutory or charter limitation on indebtedness." M.S.A. Section 475.51 (Definitions:) "Subdivision 4. 'Net Debt' means the amount remaining after deducting from its gross debt the aggregate of the principal of the following: (1 ) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefitted thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. (2) (3) (4) (5 ) Warrants or orders having no definite or fixed maturity. Obligations payable wholly from the income from revenue-producing conveniences. Obligations issued to create or maintain a permanent improvement revolving fund. Obligations issued for the acquisition and betterment of public water works systems, and public lighting, heating or power systems and of any combination thereof, or for any other public convenience from which a revenue is or may be derived. (6) Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other than those deductible under this subdivision. (7) All other obligations, which under the provisions of the law authorizing their issuance, are not to be included in computing the net debt of the municipality." * After contribution and distribution from "fiscal disparity" legislation; Minnesota laws 1971, Extra Session, Chapter 24. -62- CITY OF SHOREWOOD, MINNESOTA Table 9 RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Ratio of Net Net Bonded Debt Bonded Assessed (1) Less Amount to Assessed Debt Fiscal Estimated Value/Tax Gross Reserved for Net Values/ per Year Population Capacitv Bonded Debt Debt Service Bonded Debt Tax Capacitv Capita 1983 4720 $46 185 944 $4 090 000 $1 432 874 $2 657 126 .0575:1 562.95 1984 4750 47 686 103 4 730 000 1 383 783 3 346 217 .0702:1 704.47 1985 4750 51 027 723 4 115 000 1 523 958 2 591 042 .0508:1 545.48 1986 4788 51 214 623 4 500 000 3 054 867 1 445 133 .0282:1 301.82 1987 4921 53 059 674 4 975 000 2 044 326 2 930 674 .0552:1 595.54 1988 5094 56 589 857 4 530 000 2 688 009 1 841 991 .0325:1 361. 60 I I I I I I 1989 1990 1991 1992 5815 5917 6000 6135 7 833 998 7 197 406 8 070 339 7 859 115 2 990 000 2 720 000 4 331 000 3 416 000 1 510 303 1 902 837 2 311 859 1 742 742 1 479 697 817 163 2 019 141 1 673 258 .1889:1 .1135:1 .2502:1 .2129:1 254.46 138.10 336.52 272.74 I I I (1) Gross bonded debt amounts in this Table are general obligation special assessment bonds and revenue bonds whose principal source of funding will be sources other than general property taxes. The $920,000 Tax Increment Revenue Bonds are included in the gross bonded debt even though they are not backed by the full faith and credit of the City. I I I I I I I I I -63- I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Table 10 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT (1) TO TOTAL GENERAL EXPENDITURES* Percent of Debt Service Fiscal Total Total General to General Year Principal Interest Debt Service Expenditures* Expenditures 1983 $ 605 000 $272 167 $ 877 167 $1 683 087 52.12% 1984 605 000 242 305 847 305 2 074 644 40.84 1985 610 000 282 298 892 298 2 158 904 41.33 1986 590 000 268 077 858 077 2 258 832 37.99 1987 (2) 1 840 000 273 709 2 113 709 3 971 707 53.22 1988 435 000 274 636 709 636 2 608 230 27.21 1989 (3) 2 625 000 253 115 2 878 115 4 625 949 62.22 1990 260 000 175 098 435 098 2 500 109 17.40 1991 290 000 173 495 463 495 2 194 564 21. 12 1992 905 000 167 163 1 072 163 2 847 513 37.65 (1) Excludes G.O. Bonds reported in Enterprise Funds (2) Principal includes bonds refunded in 1987 (3) Principal included bonds defeased in 1989 * Includes General and Debt Service Funds I I I I I I I I I -64- Direct Debt* City of Shorewood Overlapping Debt Hennepin County School District #276 School District #277 Vo-Tech District #287 Metropolitan Council Metropolitan Transit Commission Total Over- lapping Debt Total Direct and Overlapping Debt CITY OF SHOREWOOD, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT DECEMBER 31, 1992 I Table 11 I City of Percent of Shorewood Net Debt Debt Applicable Share Total Debt Outstandinq to City of Debt 5 3 416 000 5 1 673 258 100.00% 51 673 258 215 090 000 67 798 886 .78 528 831 24 440 000 23 102 223 21. 87 5 052 456 1.85 1.20 424 975 000 23 112 017 .41 94 759 5 850 000 2 950 000 .44 12 980 I I I I 670 355 000 116 963 126 4.86 5 689 026 I 5673 771 000 S118 636 384 6.21% 57 362 284 I Direct debt includes all debt backed by the full faith and credit of the City even though it will be financed in part by special assessments or enterprise fund revenues and the tax increment revenue bonds even though they are supported only by the tax increments generated within the TIF District. I * I I I I I I I I I -65- I I I I I I I I I I I I I I I I I I I I CITY OF SHOREWOOD, MINNESOTA Table 12 REVENUE BOND COVERAGE LAST TEN FISCAL YEARS Net Ratio of Net Fiscal Gross (1) Revenue Debt Service Revenue to Year Revenue Expenses Available Principal Interest Total Debt Service 1983 $ 25 500 $ 59 314 $(33 814) $ 5 000 $ 11 623 $ 16 623 (2.034) to 1 1984 28 596 59 477 (30 881) 5 000 11 273 16 273 ( 1. 898 ) to 1 1985 39 855 53 151 (13 296) 5 000 10 898 15 898 ( .836) to 1 1986 58 430 59 095 (665) 10 000 10 524 20 524 ( .032) to 1 1987 108 043 81 642 26 401 10 000 9 578 19 578 1.349 to 1 1988 158 474 135 897 22 577 10 000 8 834 18 834 1.199 to 1 1989 176 719 110 987 65 732 10 000 8 125 18 125 3.627 to 1 1990 192 682 116 289 76 393 10 000 7 293 17 293 4.418 to 1 1991 17:2 569 126 614 45 955 10 000 6 493 16 493 2.786 to 1 1992 19'9 891 125 714 74 177 10 000 5 823 15 823 4.688 to 1 (1) Excluding depreciation and interest on bonds -66- CITY OF SHOREWOOD, MINNESOTA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS I I 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 (1) (1) Commercial Residential Construction Construction Number of Value Units Value $ 258 449 26 $ 3 259 626 883 000 16 2 975 396 35 6 529 612 85 686 80 15 779 286 163 23 397 136 401 004 157 29 040 667 89 16 949 136 20 000 82 16 252 990 69 14 044 120 55 10 899 687 I Fiscal Year I I I Sources I (1) City Planning and Inspection Department (2) County Assessor's Office I Bank deposits are not shown as no banks are located within the City limits. I I I I I I I I I I -67- I I I I I I I I I I I I I I I I I I I I Table 13 (2) Property Value Commercial Residential Total $ 7 956 000 $170 185 200 $178 141 200 8 552 700 174 641 300 183 194 000 9 095 600 186 399 000 195 494 600 9 171 300 190 679 600 199 850 900 10 317 900 197 382 800 207 700 700 11 167 900 217 337 000 228 504 900 11 351 300 253 363 500 264 714 800 11 820 800 299 565 500 311 386 300 11 997 100 341 843 200 353 840 300 12 081 200 370 575 700 382 656 900 -67- I CITY OF SHOREWOOD, MINNESOTA MISCELLANEOUS STATISTICS DECEMBER 31, 1992 I Year of incorporation I Form of government I Fiscal year begins Area of city I population 1992 Estimated 1990 Census 1980 Census 1970 Census I Miles of streets and alleys City streets Municipal state aid streets County roads State highway I I Sewer Lift stations Sewer rates - residential Miles of sewer lines I Number of street lights Building permits issued in 1991 Number of permits Value I Fire protection Contracted services with Mound and Excelsior I Police protection Contracted services with South Lake Minnetonka Police Department I Parks Number Acres I Water Number of connections Average daily consumption Miles of watermain Daily capacity Number of fire hydrants Water rate per thousand gallons I I Employees Regular Part-time/seasonal Total I Elections Registered voters last election Number of votes cast last election Percentage of registered voters voting I I I -68- Table 14 1956 Council-Administrator Adopted January 1, 1956 January 1 6.0 Square Miles 6,135 5,917 4,646 4,223 37.5 9.3 1.7 2.7 18 $54. 75/quarter 54 147 298 $15,525,941 5 79.7 778 299,600 gallons 14 4,680,000 gallons 165 $1.40/1000 gallons 20 15 35 4,590 4,020 87.6% ..- APIX) March 11, 1993 CERTIRED PUBLIC ACCOUNTANTS AND CoNSULTANTS Members of the city council city of Shorewood Shorewood, Minnesota In planning and performing our audit of the general purpose financial statements of the City of Shorewood for the year ended December 31, 1992, we considered its internal control structure 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 structure. We noted certain matters involving the internal control structure 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 structure 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. A materiaLl weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be dete~ted within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. We noted the following reportable conditions that we believe to be mat:erial weakn~sses. Seqreqation of Duties Our study and evaluation disclosed that because of the limited size of your office s1:aff, your organization has limited segregation of duties. A good internal control structure contemplates an adequate segregation of duties so that no ()ne individual handles a transaction from inception to completion. While we recognize that your organization 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. Other Matters The following are areas that came to our attention during the audit that we feel should be reviewed: Member of American Institute of Certified Public Accountants Private Companies Practice Section 115 EAST HICKORY Sl1\EET. SUITE 302 PO. BOX 3166 MANKAlO, MINNESCJI'A 56002.)166 (5011 625-2727 FAX (507) J88.9139 204 EAST ~ Sl1\EET PO. BOX 3<5 OWATONNA.MINNESCJI'A5~3<5 (5071 451.9136 FAX (5011 451-0794 1060 NOKl1i~ l'L'.ZA JOOl) WEST 8lTrH SIREET MlNNEAl'Ous, MINNESOTA 55431 (612) 835-9090 FAX (612) lI96-l6lO City of Shorewood March 11, 1993 Page Two APIX) ~ CERl1fIED PuBuc Ao::ouNrANTS AND O:lNsut.TANTS General Fund The fund balance increased $5,439 to $1,257,632 at year end. The entire fund balance is designated for working capital as it is needed to meet the cash flow requirements of the General Fund. The fund balance at year end of $1,257,632 is 54.6% of the actual 1992 expenditures and transfers out to other funds. While the fund balance appears to be sufficient to meet the cash flow requirements, it is important for the Council to periodic~lly review the fund balance requirements. The fund balance has remained nearly constant the past three years as summarized: Year Ended December 31. Fund Balance 1992 1991 1990 $1 257 632 1 252 193 1 256 859 It is important to maintain an adequate fund balance for the following reasons: . 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. Recent years have seen the State continually adjusting the local government aid and property tax credit formulas. An adequate fund balance will provide a temporary buffer against those aid adjustments. . 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 maintaining or improving its bond rating. city of Shorewood March 11, 1993 Page Three A summary of the 1992 operations is as follows: Revenue Expenditures Excess Revenue (Expenditures) other Financing Sources (Uses) Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenue and Other Financing Sources Over (Under) Expenditures and Other Uses Fund Balance, January 1 Fund Balance, December 31 Budqet $2 161 438 1 826 638 334 800 35 000 (532 000) (497 000) 5 (162 200) Actual $2 272 389 1 775 350 497 039 35 000 (526 600) (491 600) 5 439 1 252 193 51 257 632 AID) ~ CamAED Puauc AanumANTS AND O:lNsut:rANTS Variance - Favorable (Unfavorable) $110 951 51 288 162 239 5 400 5 400 5167 639 A further detailed comparison of revenue and expenditures are as follows: Revenue Source General Property Taxes Intergovernmental Revenue Charges for Services Licenses and Permits Fines Interest Other Revenue Transfers from Other Funds Total Revenue and Transfers Proqram General Government Public Safety Police Fire Other Public works Parks and Recreation Transfers to Other Funds Total Expenditures and Transfers 1992 $1 576 158 283 689 9 819 175 123 89 960 86 206 51 434 35 000 52 307 389 1992 $ 654 085 389 611 95 398 86 068 434 015 116 173 526 600 52 301 950 Percent of Total 68.31% 12.29 .42 7.59 3.90 3.74 2.23 1.52 100.00% Percent of Total 28.41% 16.93 4.14 3.74 18.85 5.05 22.88 100.00% 1991 $1 627 874 153 681 3 635 168 560 101 200 101 333 55 832 25 000 52 237 115 1991 $ 665 152 384 558 88 527 75 258 375 406 142 168 510 712 52 241 781 Increase (Decrease) From 1991 $(51 716) 130 008 6 184 6 563 (11 240) (15 127) (4 398) 10 000 5 70 274 Increase (Decrease) From 1991 $(11 067) 5 053 6871 10 810 58 609 (25 995) 15 888 5 60 169 city of Shorewood March 11, 1993 Page Four AI?lX) ~ CamRED PuBuc Aaxx.MrANTS AND OlNsucrANTS Debt Service Funds In governmental accounting, the bonds to be paid from the resources of each debt service fund are not accounted for within the same fund. The following recap matches the assets of each debt service fund with the bonds payable at year end. Cash and Total Bonds Investments Assets Payable 1971/72 Sewer Improvement $ 2 215 $ 2 287 $ 1984 Improvement (1987 Refunding) 479 893 558 928 550 000 Shorewood Oaks 845 848 1 132 584 870 000 1974 Sewer Improvement 35 246 65 259 30 000 1991 Improvement and Refunding 339 848 1 026 001 960 000 Shady Hills Storm Sewer Improvement 2 332 2 547 31 000 Total $1 705 382 $2 787 606 $2 441 000 The rema~n~ng balance in the 1971 and 1972 Sewer Improvement Fund will be used to pay fiscal agent fees in future years. The Shady Hills Storm Sewer Improvement Bond will be paid from taxes collected in the special taxing district. The remaining debt service funds should have sufficient assets to pay the outstanding bonds. Some of these funds will soon have sufficient cash balances to prepay the remaining bonds outstanding. We recommend the City review the call dates of the bonds outstanding for Shorewood Oaks and the 1974 Sewer Improvement. Excess funds which will be available in these debt service funds may be incorporated into the City's long-range planning and capital improvements planning. Capital Pro;ects Funds During 1991 and 1992, various capital projects funds have been established in connection with the City's five year capital improvements plan. Each year the CIP is updated to reflect actual balances available at year end and changes in the City's plans and priorities. Enterprise Funds Liquor Fund A brief comparison with prior years is as follows: 1992 Store I 1991 1990 Sales Gross profit Gross profit percentage $577 225 116 320 20.15% $606 845 131 725 21. 71% $525 807 113 340 21. 56% Operating income $ 20 949 $ 39 675 $ 27 481 city of Shorewood March 11, 1993 Page Five Al?IX) ~ CamAED Puauc Aa:xJut.rrANTS AND OJNSUlTANTS Store II 1992 1991 1990 $800 685 $848 487 $776 680 148 458 176 498 150 744 18.54% 20.80% 19.41% $ 18 283 $ 47 833 $ 32 029 Sales Gross profit Gross profit percentage Operating income Sales, gross profit, gross profit percentage and operating income all decreased significantly in 1992. . The decrease in sales in both stores, We recommend the operations be reviewed in detail to analyze the following: . The operating expenses of each store. . The decrease in the gross profit percentage of each, and Water Fund A comparison of operations with prior years follows: 1992 Charges for services $179 411 Permits, connection fees 20 480 Total revenue 199 891 Operating expenses, excluding depreciation 125 714 Operating income before depreciation $ 74 177 1991 1990 $149 088 $156 069 23 481 36 613 172 569 192 682 126 614 116 289 $ 45 955 $ 76 393 The cash deficit in the Water Fund was eliminated in 1990. The fund has increased to a positive balance of $171,637 at December 31, 1992. The bonds outstanding at year end total $55,000 and carry an interest rate of 8.5 percent. The bonds may be prepaid on any interest payment date with thirty days notice. Sewer Fund A comparison of operations with prior years follows: 1992 Charges for services Permits, connection fees $554 334 5 800 Total revenue Operating expenses, excluding depreciation Operating income before depreciation 560 134 457 114 $103 020 1991 1990 $474 451 $447 521 6 500 8 400 480 951 455 921 393 194 346 015 $ 87 757 $109 906 City of Shorewood March 11, 1993 Page Six AID) ~ CERllAED PuBuc Aa:ouNrANTS ~D G:lNsuLTANTS Recyclino Fund This fund was established in 1991 to account for the City's recycling activities. A comparison with the prior year is as follows: 1992 1991 Charges for services $ 70 981 $ 63 281 Operating expenses 63 436 58 580 Operating income S 7 545 S 4 701 Tax Increment Revenue Bonds As explained in Note 14, page 22 of the annual report, the City has no obligation beyond the tax increments collected to pay the Tax Increment Revenue Bonds issued in 1991. However, in the review of the City's 1991 report in the GFOA Certificate of Achievement for Excellence in Financial Reporting, it was strongly suggested that the Tax Increment Revenue Bonds be included as a liability in the General Long-term Debt Account Group. As a result of this suggestion, the 1991 balances included in the 1992 report have been adjusted to reflect this change. This also has an impact on the debt information in the statistical Tables. Be aware of this as you review the information in those tables. Certificate of Achievement The City will submit its 1992 financial report and participate in the Government Finance Officer's Certificate of Achievement for Excellence in Financial Reporting. The City's staff involved with this project should be commended for their efforts on this project. * * * * * This report is intended solely for the use of management and Council. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. 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. 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 continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. fJMv & E LL t March 11, 1993 Minneapolis, Minnesota ABDO, ABDO & EICK certified Public Accountants