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051198 CC Reg AgP0 s ft, CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, MAY 11, 1998 7:00 P.M. The City Council will convene in Executive Session immediately following the regular portion of the meeting to discuss status of litigation. AGENDA 1 . CONVENE CITY COUNCIL MEETING A. Roll Call Mayor Dahlberg Stover O'Neill Garfunkel Champa B. Review Agenda 2. APPROVAL OF MINUTES A. City Council Work Session Meeting Minutes April 27, 1998 (Att.42A Minutes) B . City Council Regular Meeting Minutes April 27, 1998 (Att. -#2B Minutes) C . City Council Executive Session Meeting Minutes April 27, 1998 (Att. -#2C Minutes) 3. CONSENT AGENDA - Motion to approve items on Consent Agenda & Adopt Resolutions Therein: A. A Motion Authorizing Execution of the Mighty Kids Grant Agreement (Att.43A Agreement) B . A Motion to Approve a Sign Permit (Att. -#3B Planner's Memorandum) Applicant: Twin Cities Sign Images (on Behalf of Minnesota Mini - storage) Location: State Highway 7 • C . A Motion to Adopt a Resolution Approving a Request for a Conditional Use Permit (Att. - #3C Proposed Resolution) Applicant: Nancy Williams Location: 26270 Smithtown Road D. A Motion to Adopt a Resolution Approving a 1998 Refuse Hauler's License (Att. -#3D Proposed Resolution) E. A Motion to Approve a Sign Permit (Att.43E Planner's Memorandum) Applicant: John Cross 4. MATTERS FROM THE FLOOR (No Council action will be taken.) 5. 1997 ANNUAL AUDIT REPORT - ABDO, ABDO, SICK & MEYER (Att. - #5 Audit Report) 6. PARKS - Report by Representative A. Report on April 28, 1998 Park Commission Meeting (Att.46A Draft Minutes) • CITY COUNCIL AGENDA - MAY 11, 1998 PAGE 2OF3 A. Staff Report on Development Monitoring B . Report on Shoreline Messages (Att. -#14B Messages Received) • C. Engineer's Report on May 6 Stormwater Management Informational Meeting 15. MAYOR & CITY COUNCIL REPORTS Report on May 4 Work Session: • Use of Right -of -Way • Telecommunications Consultant • Land Use Issues • Rental Policy • Direction to Staff on Planning Commission Make -up 16. ADJOURN TO EXECUTIVE SESSION SUBJECT TO APPROVAL OF CLAIMS (Att. - #16) B. A Motion to Adopt a Resolution Encouraging a Joint Skateboard Park Committee (Att. - #6B Proposed Resolution) 7. PLANNING - Report by Representative A Motion to Adopt a Resolution Approving a Requests for a Setback Variance (Att. -#7 Proposed Resolution) Applicant: Dave Peck Location: 5575 Sylvan Lane 8. DISCUSSION WITH OWNER OF FLOOR'S PLUS INC. (Att. - #8 Letter Dated 3/23/98) 9. CONSIDERATION OF A MOTION TO ADOPT A RESOLUTION CLARIFYING INTENDED USE OF RIGHT -OF -WAY - HIGHWAY 7 & POWERS BOULEVARD (Att. - #9 Engineer's Memorandum & Proposed Resolution) 10. CONSIDERATION OF A MOTION TO ADOPT A RESOLUTION MAKING APPOINTMENTS TO THE AD HOC LAND CONSERVATION COMMITTEE (Att. - #10 Proposed Resolution) 11. CONSIDERATION OF A MOTION TO ADOPT A RESOLUTION REGARDING ADMINISTRATION OF THE WETLAND CONSERVATION ACT (Att. - #11 Proposed Resolution) 12. CONSIDERATION OF A MOTION TO ADOPT A RESOLUTION MAKING APPOINTMENTS TO THE PARK FOUNDATION (Att. - #12 Proposed Resolution) 13. CONSIDERATION OF A MOTION TO ADOPT A RESOLUTION MAKING APPOINTMENTS FOR 1998 (Att. - #13 Proposed Resolution) 14. ADMINISTRATOR & STAFF REPORTS A. Staff Report on Development Monitoring B . Report on Shoreline Messages (Att. -#14B Messages Received) • C. Engineer's Report on May 6 Stormwater Management Informational Meeting 15. MAYOR & CITY COUNCIL REPORTS Report on May 4 Work Session: • Use of Right -of -Way • Telecommunications Consultant • Land Use Issues • Rental Policy • Direction to Staff on Planning Commission Make -up 16. ADJOURN TO EXECUTIVE SESSION SUBJECT TO APPROVAL OF CLAIMS (Att. - #16) CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD • SHOREWOOD, MINNESOTA 55331 -8927 • (612) 474 -3236 FAX (612) 474 -0128 • www.state.net/shorewood • cityhall @shorewood.state.net Executive Summary Shorewood City Council Meeting Monday, May 11, 1998 The City Council will convene in Executive Session immediately following the regular potion of the meeting to discuss status of litigation. City Attorney John Dean, Councilmember Roger Champa and Administrator Hurm will be absent from this meeting. i. Agenda Item #3A: This is the grant agreement submitted by the State which should be executed .� by the City of Shorewood regarding the Mighty Kids Grant submitted by Tonka United Soccer. The City of Shorewood will be the grantee. The $10,000 grant will be matched with $10,000 of Tonka United Soccer funds to accomplish programming and capital improvements. A revised budget will be submitted by Tonka United. It is important that the Council authorize execution of this agreement tonight and that the deadline is May 15. Agenda Item #3B: Two S Properties has requested approval of a permit to erect 2 wall signs and a pylon sign at their new Minnesota Mini - Storage facility, located at 19395 State Highway 7. The signs comply with the requirements of the C -3 zoning district, and the Planning Director ' has recommended approval of the permit. Council approval requires a simple majority vote. Agenda Item #3C: This resolution approves Nancy Williams' special home occupation permit to operate a cat boarding facility at 26270 Smithtown Road. Approval by the City Council requires a four -fifths vote. Agenda Item #31): This resolution approves the 1998 refuse haulers license for AW Disposal. Agenda Item #3E: John Cross has requested an after- the -fact permit to replace the sign for the Shorewood Yacht Club, located at 600 West Lake Street. despite the nonconforming use status of the Yacht Club, the sign is consistent with the previous signage which existed on the property. The Planning Director recommends approval of the sign permit, subject to the applicant paying a double permit fee for erecting the sign without a permit. Agenda Item #5: A representative from Abdo, Abdo, Eick & Meyer will be present to review the 1997 annual municipal audit with the City Council. Feel free to call Al anytime before the meeting if you have any technical questions. «% PRINTED ON RECYCLED PAPER Executive Summary for Council Meeting May 11, 1998 Page 2 of 2 Agenda Item #6B: The Park Commission is asking the City Council to pass the enclosed resolution which encourages other Lake Minnetonka area cities to work with us to jointly consider establishing a skate park somewhere in the area. Agenda Item #7: At the last meeting the City Council directed staff to prepare findings of fact approving as much as an eight -foot setback variance for Dave Peck. Mr. Peck has submitted a petition requesting that eight feet of right -of -way along Wild Rose Lane be vacated. The City Attorney will provide an estimate of the cost of legal work required for the vacation, and the City Engineer will comment on the advisability of the vacation. A public hearing for the vacation can be scheduled for the June 8 City Council meeting. Approval of the variance requires a four -fifths vote of the Council. Approval is only recommended if the applicant agrees to escrow funds to cover the City's cost of vacating the right -of -way. Agenda Item #8: Staff is prepared to comment on many of the questions raised by Mr. Johnson in his memorandum to the Council enclosed in the packet. Agenda Item #9: The City of Chanhassen is proposing to construct an 8.0' wide trail along the south side of TH 7. Since approximately 2500 feet of the trail lies within the City of Shorewood boundary, the Minnesota Department of Transportation requires that a Limited Use Permit be obtained from Shorewood as well as Chanhassen for construction and maintenance of the trail. Staff is recommending approval for the Mayor and City Administrator to enter into an agreement with Mn/DOT for the Limited Use Permit. Agenda Item #10: This resolution makes appointments to the Ad Hoc Land Conservation Committee. Agenda Item #11: The Board of Water and Soil Resources requires each municipality every 12 months to designate the Local Governmental Unit (LGU) to administer the Wetland Conservation Act Rules (WCA) of 1991. Since the Riley Purgatory Bluff Creek Watershed District has been the LGU for the southeast portion of the City for several years, staff is recommending that they continue to administer the WCA rules for this district. The Minnehaha Creek Watershed District will be considered at a later date as the stormwater management plan nears completion. Agenda Item #12: This resolution makes appointments to the two positions on the Park Foundation that are vacant. Agenda Item #13: This resolution revises various appointments that have been become open due to the resignation of Jennifer McCarty from the Council. Agenda Item #16A: The City Council should report on the various matters that were discussed at the work session on Monday, May 4, giving direction to staff to prepare ordinances and take specific action. CITY OF SHOREWOOD CONFERENCE ROOM CITY COUNCIL WORK SESSION MEETING 5755 COUNTRY CLUB ROAD MONDAY, APRIL 27, 1998 6:30 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION F �--. AFT Mayor Dahlberg called the meeting to order at 6:35 p.m. A . Roll Call Present: Mayor Dahlberg; Councilmembers Stover, McCarty (arrived at 6:55 p.m.), O'Neill and Garfunkel; City Attorney John Dean; Prosecuting Attorney Kenneth Potts; Administrator Jim Hurm; Planning Director Brad Nielsen B . Review Agenda The agenda was approved as presented. 2. DISCUSSION WITH PROSECUTING ATTORNEY ON TREE ORDINANCE VIOLATIONS Attorney Potts stated there is no specific provision contained in the ordinance which states it is a crime to damage a tree which has been designated to be saved. Once a tree is damaged, cut or removed, it must be replaced. In the event the tree is not replaced, a violation will have occurred and can be charged as a misdemeanor. Mayor Dahlberg asked what type of evidence would be needed for prosecution. Attorney Potts stated it would be helpful to have a statement from the person who is suspected of having created the situation. In addition, it would be necessary to have photographs depicting the area. Councilmember O'Neill question whether it can be a misdemeanor to go through tree protection fencing. Attorney Potts stated this could be done, however, it was his understanding the Council would be more interested in holding the developer responsible which he felt would be difficult to • do. Attorney Dean explained the ordinance and policy must be specific as to what the violation is followed by fair notice and an opportunity to correct the situation. The burden would have to be placed on the individual responsible for creating the situation. Mayor Dahlberg stated he would not have a problem with prosecuting a subcontractor who violates the policy. Attorney Dean stated that under the existing ordinance, if a violation occurs, notice could be given to the developer to correction the situation within a specified period of time. If the situation is not correction in the specified time, the developer could then be prosecuted. Councilmember O'Neill stated he is more interested in discouraging violations up front rather than having to prosecute violations. Councilmember Stover inquired at what point the ownership of the property transfers from the - developer to a homeowner. She noted an individual could purchase a lot and would own the lot during the time a house is being constructed. She noted it would be at the discretion of the homeowner to remove or preserve trees as he sees fit. Attorney Dean explained once a Certificate of Occupancy is issued, the developer is relieved of any further obligation. CITY COUNCIL WORK SESSION MINUTES APRIL 27, 1998 - PAGE 2 Councilmember Stover asked at what point the homeowner have the right to decide which trees will be saved and which can be eliminated. Attorney Dean explained once the property falls into private ownership and the owner /occupant is in possession of the property, they may do as they see fit. Nielsen pointed out the owner would participate in the tree preservation plan along with their builder. If the owner has designated trees to be eliminated or saved, this would be indicated to the builder and would then be reflected in the plans which are submitted to the City as a part of the building permit process. Mayor Dahlberg commented the goal of the Council is to develop a motivation for the developers and subcontractors to abide by the plan which has been approved and agreed to. He felt it could be stipulated if the requirements specified in the ordinance are not satisfied, the violation will be considered a misdemeanor. Mayor Dahlberg suggested Attorneys Dean and Potts review this matter and if additional language needs to be added to the policy, this may be brought back before Council for further review. Attorney Dean inquired whether the Council would deem a violation to have occurred once the developer has been directed to correct a situation and then fails to do so or whether they would prefer a violation is determined at the time a tree which is to be saved is actually eliminated. Councilmember O'Neill was in favor of determining a violation at the point there is an infraction rather than at the point there is failure to correct. Attorney Dean noted the criminal penalty would more than likely consist of a fine rather than any executed jail time. Attorney Dean stated he will also address the issue of when the policy ceases to be applicable. Mayor Dahlberg noted he shares this concern. ( Councilmember McCarty arrived at 6:55 p.m.) 7. ADJOURNMENT O'Neill moved, Garfunkel seconded to adjourn the work session to the regular City Council meeting at 6:55 p.m. Motion passed 510. RESPECTFULLY SUBMITTED Cheryl Wallat, Recording Secretary TimeSaver Off Site Secretarial, Inc. ATTEST TOM DAHLBERG, MAYOR JAMES C. HURM, CITY ADMINISTRATOR - MAY. -05' 98 (TUE) 09:33 TEL :612 421 9511 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, APRIL 27,1995 MINUTES CONVENE CITY COUNCIL MEETING COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:00 P.M. Mayor Dahlberg called the meeting to order at 7:05 p.m. and announced the Council will meet in Executive Session at the conclusion of the regular meeting to discuss pending litigation. A. Roll Call Present: Mayor Dahlberg; Councilmembers Stover, McCarty, O'Neill and Garfiinkel; Administrator rim Hurmm City Attorney John Dean; Engineer Larry Brown; Planning Director Brad Nielsen. B. Review Agenda Mayor Dahlberg read the Agenda for April 27, 1998. Administrator Hurm noted Item No. 11, Consideration of a Motion to Adopt a Resolution Regarding Adm inistra tion of the Wetland Conservation Act, will be stricken from the agenda. In addition, he requested the Council consider as Item No. 11, Consideration of a Motion for an Authorization to Seek Declaratory Judgment on the Liquor Store Issue. O'Neill moved, Garfunkel seconded accepting the agenda as amended. Motion passed 5/0. CouncHmember O'Neill suggested offering the public an opportunity to address items on the consent agenda if they wish. C. Presentation of Plaques Mayor Dahlberg expressed his appreciation to Councilmember McCarty for her years of service and also noted there were a number of letters received from various Park Commissioners expressing their appreciation for her service as Council Liaison to the Park Commission. C ounc il me mb er Stover presented Councdmember McCarty with a plaque for her years of service and dedication both on the Park Commission and the City Council and expressed her appreciation to her. Councilmember McCarty stated she has enjoyed her time and commented it has been a privilege to work with the various residents who have served on a variety of committees, task forces, and commissions. She expressed her appreciation to City Staff for their hard work and dedication as well. Mayor Dahlberg presented Planning Commissioner Virginia Kolstad with a plaque for her three years Of service on the Planning Commission ss well as her service on the Snowrnobile Task Force.. He., expressed his appreciation for her dedication and service to the City. �a3 MAY.- 05'98(TUE) 09:34 TEL:612 421 9511 P. 002 ' CITY COUNCIL REGULAR MEETING MIN=S APRIL 27, 1998 - PAGE 2 2. APPROVAL OF MINUTES A. City Council Work Session Minutes - April 6,1998 O'Neill moved, Garfunkel seconded approving the City Council Work Session Minutes for April 6, 1998 as amended on Page 1, Roll Call, delete "Planning Commissioners Lizee and Champa; Park Commissioner Arnst;" Item No. 3, Paragraph 3, Sentence 4, change "are of the opinion" to "believe;" Page 2, Paragraph 1, Sentence 1, change to read, "whether Shorewood citizens favor changing the current zoning;" Paragraph 2, change "Council" to read "citizens;" Paragraph 3, add "and may not, therefore, have an opinion." Page 3, Paragraph 4, Sentence 2, add "over the years." Page 7, Item A, Paragraph 1, Sentence 2, change to read, "Lundgren Bros. informed the City Inspector they wanted to wait..." Add the following sentence: "Councilmember O'Neill did not believe there would be damage to the wetland due to one person cleaning the plastic out of the area by hand." Motion passed 4/0. (Councilmember McCarty abstained.) B. Reconvened Board of Review Minutes - April 13,1998 Hearing no objection, the Reconvened Board of Review Minutes for April 13, 1998 were approved as presented. C . City Council Regular Meeting Minutes - April 13,1998 Dahlberg moved, O'Neill seconded approving the City Council Regular Meeting Minutes for April 13, 1998 as amended on Page 9, Item C, Paragraph 3, change "cultural object" to "an influence." Motion passed 5/0. D. City Council Work Session Minutes - April 20, 1999 Hearing no objection, the City Council Work Session Minutes for April 20, 1995 were approved as presented. 3. CONSENT AGENDA McCarty moved, Stover seconded approving the Motions contained on the Consent Agenda and Adopting the Resolutions therein: A. A Motion adopting RESOLU11ON NO. 98-031 "A Resolution Approving a Conditional Use Permit for Minnetonka Country Club, 24575 Smithtown Road" • B. A Motion adopting RESOLUTI '19 NO. 98 -032 "A Resolution Approving a .MAY. -05' 98 (TUE) 09 :35 CITY COUNCIL REGULAR MEETING MIlVUTES APRIL 27,199$ - PAGE 3 TEL :612 421 9511 P. 003 Preliminary Plat • Mary Lake Addition for O'Dell Tinnesand, Yellowstone Trail" C. A Motion adopting RESOLUTION NO. 99-033, "A Resolution Accepting the Proposal for Professional Engineering Services for Emergency Vehicle Preemption Equipment" D. A Motion adopting RESOLUTION NO. 99-034. "A Resolution Approving a Liquor License for the American Legion" E. A Motion Adopting RESOLUTION NO. 99-M "A Resolution Accepting Plans and Authorizing Advertisement for Bids - Project No. 97-6 Lakeside Watermain Extension" F. A Motion Adopting RESOLUTION NO. 98 -03b. "A Resolution Authorizing Abatement of Watermain Assessment" Motion passed 510. 4. MATTERS FROM THE FLOOR - None 5, PRESENTATION BY BOB GAGNE OF 1997 ANNUAL REPORT OF THE FRYENDS OF THE SOUTHSHORE CENTER Bob Gagne, Friends of the Southshore Center, was in attendance and presented the 1997 annual report of the center. Mr. Gagne stated he was pleasantly surprised with the results of the annual report and he thanked the Council for all of their assistance in the past and in the future. 6. PARK - Report by Representative A. Report on April 14, 1998 Park Commission Meeting Commissioner Bensman reported on the matters considered and actions taken at the April 14, 1998 meeting of the Park Commission (as detailed in the minutes of that meeting). Commissioner Bensman expressed her appreciation to Councilmember McCarty for her participation with the Park Commission as Council Liaison. B. A Motion Accepting Donation of Electrical Extensions for Cathcart Park and Freeman Park Field #1 to the Backstops McCarty moved, Stover seconded accepting the donation of electrical extensions for Cathcart Park and Freeman Park Field #1 to the backstops. Motion passed 510. NAY.- 05'98(TUE) 09:35 TEL:612 421 9511 P. 004 r> CYTY COUNCIL REGULAR MEETING MINUTES APRIL 27,1998 - PAGE 4 C. A Motion Authorizing Expenditure of Funds for Netting in Freeman Park, Field #2, to address Foul Ball Problem McCarty moved, Stover seconded authorizing an expenditure in the amount of $2,500 for netting in Freeman Park, Field #2, to address foul ball problem. Motion passed 510. D. A Motion Approving a Park Shelter Policy Dahlberg moved, Garfunkel seconded approving the Park Shelter Policy. Motion passed 5/0. 7. PLANNING - Report by Representative Commissioner Champa reported on the matters considered and actions taken at the April 21, 1998 meeting of the Planning Commission (as detailed in the minutes of that meeting). Commissioner Charnpa also expressed his appreciation to Councilmember McCarty for her service to the City. A. A Motion to Direct Staff to Prepare a Findings of Fact Regarding Requests for Setback Variances Applicant: David Peck Location: 5575 Sylvan Lane Fred Brining, Sawhorse Designers and Builders, appeared on behalf of Mr. Peck and Ms. Rankin. He provided a diagram depicting the need for an eight foot variance to accommodate the garage addition. Mayor Dahlberg noted that even if the Council were to vacate 16 feet of the right -of -way, a variance would still be required for the garage addition. • Councilmember Stover suggested the Council first discuss whether the criteria for granting a variance are met through Mr. Peck's request. Mr. Bruning addressed the criteria for granting a variance. He noted various alternative plans were considered, however, those plans would not be preferable for a variety of reasons. Mr. Bruning stated had the house not been allowed to be built encroaching into the easement, it would not be necessary for the applicants to be requesting a variance at this time. Mr. Bnming felt not allowing a third garage stall on a home of this type to be a significant limitation for this property. He felt it reasonable for a homeowner to improve their home rather than moving to another home to meet their needs. In addition, Mr. Bruning stated the majority of the homes in the immediate area have three car garages- MAY. -05' 98 (TUE) 09 :56 TEL :612 421 9511 CITY COUNCIL REGULAR MEEM NG MINUTES APRIL 27, 1999 - PAGE 5 P. 005 Mayor Dahlberg asked Mr. Bruning to define the hardship he perceives if the garage addition were not to be approved. Mr. Bruning stated the existing garage is only 18 feet deep. He explained if the homeowners are not allowed to proceed with the garage addition, they will be forced to move to a larger home. Councilmember ONeill pored out the ma orriy of the existing homes in the neighborhood have two stall garages. The three stall garages are part of new construction homes. He did not feel this to be an argument for a hardship. Mr. Peck felt this level of home should include a third stall in the garage. He stated it is necessary to have the additional space if he is going to invest a significant amount of money into the home at this time. Councilmembers Garfunkel and McCarty felt the issue of vacation of the right -of -way should be considered prior to discussing the request for a variance - Councilmember Stover commented staff would need to de berme whe ther asp e vacated land would go to the adjacent property owners. Nielsen noted this wou of a vacation request. He also pointed out a public hearing would need to be held if a vacation is to be considered. Mayor Dahlberg inquired as to the potential cost involved in vacation of the right -of- -way. Nielsen explained public hearing notices would have to be sent. Typically the applicant would pay for this. In addition, title work would have to be completed. Attorney Dean explained the ownership of the area to be vacated would have to be investigated- It would also have to be determined whether there are utilities buried in this portion of the right -of -way. Any costs incurred as a part of a vacation would be at the expense of the applicant. • Brown explained there are a number of issues which need to be investigated before a vacation of the right -of -way can be considered. Councilmember ONeill questioned the location of the existing tennis court. Ni explained the f tennis court does encroach 30 feet into the required setback area. P b t the issue topography, the level of site used up by the house. The applicant would be precluded from out building the third garage stall to the east given the location� of the tennis th fo Nielsen this would ' the criteria in granting variances speaks to the hardship not nS previous property owners - go back to previous owners. Mr. Peck, therefore, inherits the actions of p Comcilmember, Stover suggested the Council discuss w��G � °the no t seco d s��to1Y� C �� at this time. She the Council should consi t h e Stover believed there to be hardship considerations relative to stops and trees which Preven the MAY. -05' 98(T11E) 09 :36 :z: TEL :612 421 9511 CITY COUNCIL REGULAR MEETING MI IMS APRIL 27, 1995 - PAGE 6 P. 006 garage from being built. Mayor Dahlberg noted his agreement stating he is satisfied the garage addition would be a reasonable use of the property. Councilmembers ONeill and McCarty did not feel a hardship exists. Councilmember ONeill pointed out this situation was created by a previous owner of the property and would, therefore, not qualify as a hardship. Councilmember Gwfunkel noted his agreement with Councilmembers ONeill and McCarty. Councilmember ONeill questioned whether Mr. Peck is interested in pursuing a possible right- of-way vacation. Mr. Peck stated he would be interested in presenting a petition. O'Neill moved, Stover seconded directing staff to prepare a Findings of Fact and Resolution granting an eight foot variance on Wild Rose Dane. Granting of the eight foot variance is conditioned upon the applicant depositing with the City an amount to cover the cost in connection with a vacation of an eight foot strip of Wild Rose Lane in front of the applicant's house. The applicant must also provide a waiver and consent to allow the vacation to occur. Any unused portion of the deposit would be returned to the applicant upon the completion of the vacation proceeding. Motion passed 5/0. Mayor Dahlberg recessed the meeting at 8:50 p.m. and reconvened at 8:57 p.m. B. A Motion to Direct Staff to Prepare a Findings of Fact Regarding a Request for a Conditional Use Permit Applicant: Nancy Williams Location: 26270 Smithtown Road • Mayor Dahlberg felt this type of business would be more consistent with a commercial property. He questioned whether granting Ms. Williams' request would establish a precedent in which a request for a dog boarding business would have to be approved. Attorney Dean commented the request for a dog boarding business could be denied on the basis of noise if the Council were to find this to be a problem. Ms. Williams was is attendance to address any questions raised by the Council. Councilmember ONeill suggested the applicant display photographs to Council which depict a model of the intended facility. Mr. Troyak, the current owner of the home, was in attendance. He noted he spoke to the surrounding neighbors relative to this situation and provided them with Ms. Wilhams' telephone number to address any concerns which they might have. hich Dick Kunz, leis. Williams' realtor, was in attendance and described the structure w is intended. M, AY. -05' 98 (TUE) 09:31 TEL:612 4219511 CITY COUNCIL REG MEETING MINUTES APRIL 27,1995 - PAGE 7 P. 007 Mayor Dahlberg questioned whether there are any inspections of the facility which would occur on a regular basis. Ms. Williams ex lamed there would not be any inspections, however, she pointed out if she does not run a clean and quiet facility, she would be unable to retain customers. It was noted this Conditional Use Permit would be reviewed after one year and every three years thereafter. Nelsen pointed out the Council can impose a condition the permit be reviewed annually. Councilmember Stover commented on the conditions which were requested by the Planning Co and did not feel it necessary to include a condition relative to deceased cats being stored on the property for in excess of 24 hours. Ms. 'Williams inquired whether the driveway turnaround is necessary. Mayor Dahlberg and Councilmember Stover felt the driveway to be a necessary safety feature. • Stover moved, McCarty seconded directing staff to prepare a Findings of Fact approving a Conditional Use Permit for Nancy Williams, 26270 Smithtown Road, deleting the condition relative to the removal of deceased cats. Motion passed 5/0. C. Report on Antenna Discussion at Joint Meeting and Discussion on Communication Consultant Nielsen stated this matter has been scheduled for a study session and at that time a list of potential consultants will be reviewed. 8. CONSIDERATION OF A MOTION TO ADOPT AN ORDINANCE AMENDMENT - CHAPTERS 502 NUISANCES; 701 DOGS; AND 902 PUBLIC PARKS & RECREATIONAL AREAS & ADOPTION OF A RESOLUTION ESTABLISHING A POLICY • Councilmember Stover stated it will be important to publicize this ordinance. She noted she is opposed to writing ordinances which cannot be enforced, however, Councilmentber Stover related her belief if residents are made aware of a problem, they will comply. McCarty moved, Garfunkel seconded adopting an ordinance amendment - Chapters 502 Nuisances; 701 Dogs; and 902 Public Parks & Recreational Areas. Motion passed 510. McCarty moved, Stover seconded adopting RESOLI ON NO. 98 -031 "A Resolution Establishing a Policy Regarding Domestic Animals on Public Property or the Property of Another." Motion passed 510. 9. CONSIDERATION OF A MOTION TO ADOPT A RESOLUTION MAKfNG AN APPOINTMENT TO THE CITY COUNCIL. EFFECTIVE MAY 1 MAY. -05' 98(TUE) 09:38 z M c TEL:612 421 9511 CITY COUNCIL REGULAR MEETING MINUTES APRIL x7, 1998 - PAGE 8 P. 008 ` Councilmember Stover felt Mr. Champa to be a greater asset on the Planning Commission at this time. She felt there to be limited experience on the Commission given the number of new members. Councilmember McCarty noted her 'agreement that Mr. Champa is an asset to the Planning Commission. Councilmember ONeill noted Mr. Champa's experience will be beneficial to the Council rather than bringing in a new person for an eight month period. He pointed out Mr. Champa is familiar with the issues and has attended most of the recent Council meetings. Councilmember ONeill stated there are very talented people on the Commission and he has considerable confidence in their abilities. Mayor Dahlberg noted his agreement with Councilmember ONeill. Councilmember Garfunkel was in favor of appointing Mr. Champa to the Council. O'Neill moved, Garfunkel seconded adopting RESOLUTION NO. 98 -038. "A Resolution , Maldug an Appointment of Roger Champa to the City Council Effective May 1, 1998:' Motion passed 3/0. (Councilmembers Stover and McCarty abstained.) 10. CONSIDERATION OF A MOTION TO ADOPT A RESOLUTION MAKING APPOIN~IIVIENTS TO THE PLANNING COMMISSION EFFECTIVE MAY 1 Mayor Dahlberg noted Mr. Wellens has declined appointment to the Planning Co Hurm questioned which vacancy.Mr. Anderson will be filling. Councilmember Garfunkel suggested Mr. Anderson fill the vacancy created by Roger Champa which expires December 31, 1999. Councilmember ONeill stated his belief the Commission should be reduced to five members as opposed to seven. Dahlberg moved, Stover seconded adopting RESOLUTION NO. 98 -039 "A Resolution Maldng the Appointment of Neil Anderson to the Planning Commission Effective May 1, 1999 through December 31,1999." Motion passed 3 /1. (Councilmember O'Neill was the dissenting vote and Councilmember McCarty abstained.) Councilmember ONeill explained he supported Mr. Anderson throughout the interview process, however, his vote is based on his belief the Planning Commission should be reduced to five members. He noted a number of complaints have been received relative to the length of time it takes for the Planning Commission to work through an issue. Consideration of the appointment of another planning commissioner will be discussed at the upcoming work session presently scheduled for May 4, 1998. 11. CONSIDERATION OF A MOTION FOR AN ATrTHORTLATION TO SEEK DECLARATORY JUDGMENT ON THE LIQUOR STORE ISSUE M, AY, -05' 98 (TUE) 09:38 TEL:612 421 9511 P. 009 CM COUNCIL REGULAR MEETING NIINUTES APRIL 27,1999 - PAGE 9 Dahlberg moved, Garfunkel seconded approval of an authorization to seek declaratory judgment on the liquor store issue. Motion passed 5/0. 12. DISCUSSION WITH Cr rY ATTORNEY ON ADMINISTRATIVE SANCTIONS Attorney Dean provided a packet relative to administrative sanctions. He explained the City of Minnetonka has adopted a "City Court" process and provided information to the Council relative to this. Attorney Dean noted there is some question whether administrative sanctions can work in a non - charter city. Mayor Dahlberg explained the Council is considering the possibility of adopting administrative sanctions which would give the City the ability to impose fines for the violations of City ordinances. Attorney Dean explained the charter cities such as Minnetonka establish a group of hearing officers who review the information and the situation and then make a decision. He suggested perhaps a representative of Minnetonka would be interested in discussing this program with the Council. Councilmember ONeill requested Hurm attempt to arrange this. Mayor Dahlberg stated the objection is to save time and money. He felt administrative sanctions would return more local control in some regards, however, he expressed concern relative to the extent to which voters can sanction the activity and the process. 13. ADMINISTRATOR AND STAFF REPORTS A. Staff Report on Development Monitoring Nelsen reported a list of items which remain to be completed at the Watten Ponds development has been compiled by Mr. Tipka of WSB when he visited the site. He noted there are areas where • erosion has begun to fill and top over some of the erosion control fencing. The developer has been instructed to remove the silt from those stockpile locations. This work must be completed by May 5th in view of the fact road restrictions are currently in effect and some of the work requires larger equipment. Mr. Tipka also recommended the stockpile on Lot 2, Block 1, be regraded to create a more gradual slope. This work must also be completed by May 51h. needs to be regraded and sodded in by the In addition, there are areas m which the right -of -way needs to be developer. May 5th would also be the proposed deadline for this work. Curb repair completed on an adjoining lot prior to the wear course being completed on the asphalt' The wetland mitigation must be completed in accordance with the plan which was submitted to the MAY. -05' 98 (TUE) 09:39 TEL: 612 421 9511 CIT`Y COUNCIL REGULAR MEETING A041 TES APRIL 27, 1998 - PAGE 14 P. 010 Watershed District. The city sewer must be televised at some point in the future and a report made back to the City. Nelsen explained this would normally be completed at the end of the warranty period. The bituminous wear course must be installed in this construction season. The developer has been given five days in which to install a stop sign on Eureka Road. In addition, street signs are needed, however, these will have to be ordered_ Nelsen also reported a retaining wall has been built too close to the back of the curb and Engineer Brown has recommended three weeks in which the developer must correct this situation. There are also some areas where tree protection fencing needs some repair. In one area, a tree has fallen over the tree protection fence and the developer has been directed to remove the tree and repair the fencing. Rip rap needs to be added to the pond outlet and the developer has been given three weeks to complete this work. With respect to the construction sites, on one site in particular, the developer filled in around some trees and moved fencing. The dirt has been pulled away from the trees in question. In addition, trees which are attempting to be saved have been marked, however, they are not necessarily a part of the tree protection plan_ There is erosion control fencing which needs to be repaired on the west side of the driveway serving Lots 6 and 7. This work is to be completed by May 5th as well. Brown reported he has been in contact with the Watershed District to inquire relative to the status ofthe wetland restoration issue. No reply was received. Brown spoke with a representative of the Watershed District and was told the wetland restoration could occur during the month of April and still have a very successful rate at wetland vegetation being established. Brown stated at this point the engineer is contesting the elevation is any different than it was prior to the installation of sanitary sewer. The neighborhood has raised a concern relative to elevation specifically in this area, noting the elevation is higher now. In discussing this issue with the Watershed District, Brown requested a registered professional engineer or registered land surveyor provide the Watershed District and the City with documents depicting survey shots before and after the installation of the sanitary sewer. Both Engineer Brown and Planning Director Nelsen are of the opinion the area is higher now than it was originally. Nelsen reported some work was completed on the north end of the channel out of Christmas Lake. A property owner has done some work along the shoreline. This area has been visited and it appears some dead trees were removed, however, it was felt brush was removed in excess of what the ordinance allows. A notice will be sent to the property owner relative to this. • • Brown noted the Council had requested staff investigate the cost of installing a light on Glen Road. MAY. -05' 98(TUE) 09:40 TEL:612 421 9511 P. Oil CITY COUNCIL REGULAR MEETING MINUTES APRIL 27, 1998 - PAGE 11 An estimate was received from NSP. Installing a light fixture on the existing pole would cost approximately $821. Installation of a wooden pole with an overhead wire across Road 19 would cast approximately $1,452. Installation of a decorative fiberglass 30 -foot pole with a carriage style light could cost as much as $2,187. Brown requested Counc direction noting under the current policy the petitioners would be obligated to pay the installation costs and the City would then pay for the perpetual electrical use of that light. Councilmember Garfunkel stated the neighborhood should be made aware of the costs and make a decision from there. Brown stated 1W. Dresser has been made aware of the costs and a letter will be sent to each of the residents concerned outlining the costs. Brown also reported on the Glen Road/Gideon Woods drainage situation. He explained a meeting is has been scheduled for Wednesday to walk the site with a representative of Hennepin County and obtain an answer from them. With respect to Wiltsey Lane, a feasibility report for improving this roadway from gravel to bituminous is being prepared. WSB will subinit a proposal on this and a letter will be sent to the petitioners letting them know this process is proceeding and they can expect to see WSB completing some preliminary survey work in the area. Brown noted the beavers have been active at Christmas Lake. He explained an entire culvert, consisting of 200 feet, was plugged with mud and wood. The outlet has been opened and the water level has dropped significantly. B. Report on Shoreline Messages Received Hurm reported a call was received from a resident relative to Strawberry Lane requesting a wider road or perhaps an improved shoulder to provide safety for children walking in the area. A called was received from a resident on Tiffany Lane relative to pesticides and insecticides which are used by Lauren Companies. Brown noted the resident had contracted with this particular company and their dog became ill when he came into contact with the pesticide, The resident questioned whether the City requires posting of pesticides and insecticides by ordinance. Brown pointed out this is covered by state law. C. Report on Upcoming League Conference Hurm reminded the Council the League of M mesota Cities Annual Conference is scheduled for June 16 through 19, 1999 14. MAYOR & CITY COUNCIL REPORTS MAY.-05'98(TUE) 09:40 TEL:612 421 9511 CITY COUNCIL REGULAR MEETING MINUTES APRIL 27, 1998 - PAGE 12 Review South Lake Minnetonka Public Safety Department 1997 Audit Report P. 012 Hurm explained the report is very good and has been accepted by the Coordinating Committee. A five year capital improvement program has been included for the police department. Mayor Dahlberg reported he, along with Councilmember ONeill, attended the Arbor Day celebration on Saturday in Manor Park along with run Hurm, Dan Puzak and several residents. Councilmember McCarty expressed her appreciation to Councilmember Stover for her help and support over the years. Mayor Dahlberg requested staff provide him with information relative to the number of CUPs in existence in Shorewood as well as how often these permits are reviewed. 15. ADJOURNMENT McCarty moved, Garfunkel seconded adjourning the regular meeting to executive session at 10:21 p.m. subject to the approval of claims. Motion passed 5 /0. RESPECTFULLY SUBNIIT'I'ED Cheryl Wallat, Recording Secretary TimeSaver Off Site Secretarial, Inc ATTEST TOM DAHLBERG, MAYOR JAMES C. HURM, CITY ADMI1vMSTRATOR s • .0 CITY OF SHOREWOOD COUNCIL CHAMBERS CITY COUNCIL EXECUTIVE SESSION 5755 COUNTRY CLUB ROAD MONDAY, APRIL 27, 1998 FOLLOWING REGULAR PORTION OF MEETING MINUTES -sue 1. CONVENE CITY COUNCIL EXECUTIVE SESSION Mayor Dahlberg called the meeting to order at 10:37 p.m. A . Roll Call Present: Mayor Dahlberg; Councilmembers Stover, O'Neill and Garfunkel; City Attorney John Dean and Corrine Thompson; City Planner Brad Nielsen; City Engineer Larry Brown; and Administrator Jim Hurm 40 Absent: Councilmembers McCarty B . Review Agenda The agenda was approved as presented. 2. DISCUSSION ON STATUS OF CURRENT AND PENDING LITIGATION MATTERS Attorney Dean briefed the Council on the status of pending and current litigation matters. 3. ADJOURNMENT Stover moved, Garfunkel seconded, to adjourn the City Council Executive Session Meeting at 11:45 p.m. Motion passed 4/0. 0 RESPECTFULLY SUBMITTED James C. Hurm, City Administrator ATTEST TOM DAHLBERG, MAYOR JAMES C. HURM, CITY ADMINISTRATOR -47a�- /V\ASC � March 12, 1998 Mr. James Hum City of Shorewood 5755 Country Club Road Shorewood, MN 55331 Dear James: Congratulations on being selected as a "Mighty Kids" youth sports and recreation grant recipient! The Minnesota Amateur Sports Commission (MASC) reviewed ninety -six grant applications in the first round of the "Mighty Kids" youth sport and recreation and grant program. Only half of the grant applications received were chosen as award recipients for fiscal year 1997. The City of Shorewood was among those selected to receive grant funds in the amount of $10,000 to finance the development or expansion of recreation programs for youth. Enclosed please find the following items: 1. Certificate of Grant Award - Official certificate of the "Mighty Kids" grant program which may be presented to local unit of government. 2. Grant Processing Requirements - Summary of MASC and Minnesota Department of Finance requirements relating to grant processing. 3. Grant Agreement - Official grant form which will be used by recipients. Any . changes made to this agreement must be approved by the Attorney General's Office. Recipients are asked to make four copies, obtain original signatures and forward the copies to the MASC Office. Sincerely, r l Paul D. Erickson Executive Director Minnesota Amateur Sports Commission MINNESOTA AMATEUR SPORTS COMMISSION 1700 105th Avenue NE - Blaine, Minnesota 55449 -4500 - (612) 785 -5630 - fax (612) 785 -5699 - tdd 800 - 627 -3529 toll free 800 -500 -8766 - e -mail masc@citilink.com - www.masc.state.mn.us An Equal Opportunity Employer * Q Attached is your certificate of grant award. We encourage you to contact your local state senator or representative and invite them to present this certificate at your next meeting. This program would not be possible without the support of the Minnesota State Legislature. r Ir As iiw2-rt IXIIIIIXIII C� V "MIGHTY KIDS" GRANT PROCESSING REQUIREMENTS I. Grant recipient must provide Minnesota Tax I.D. Number and Federal Tax 1. D. Number to MASC accounting personnel if not included on the cover page of applicant's original proposal. il. Grant Agreement A. Fill in blank on page 2 of agreement and make four copies of entire document. B. Obtain four original signatures from authorized representative of local political subdivision (city administrator, school board superintendent, county administrator, etc.). Statutory cities require two signatures. C. Mighty Kids Grant Agreement must be submitted within 60 days of receipt (May 15, 1998). One copy of this agreement will be returned to applicant upon execution. Please forward all copies of agreement to: Minnesota Amateur Sports Commission Attention: Lynda Lynch 1700 105th Avenue NE Blaine, MN 55449 -4500 III. Invoicing A. Upon receipt of a fully executed agreement, grant recipient may invoice (request payment) for "Mighty Kids" Grant. • B. Grant recipient must expend matching funds, if required, before submitting for financial reimbursement. Grant recipient must include proof of payment (copies of checks) with corresponding invoices that equal or exceed the required match amount. (Grants under $2,500 do not require a match) C. Please include a formal letter from the political subdivision invoicing (requesting payment) for Mighty Kids Grant. The formal letter should also indicate the status of the program. if you have any questions on the grant agreement or invoicing process, please feel free to contact Chris Heineman at (612)785 3679. 0 MAX (612) 785 -5630 THIS grant contract, and amendments and supplements thereto, is between the State of Minnesota, acting through its Amateur Sports Commission (hereinafter STATE) and the City of Shorewood (hereinafter GRANTEE), witnesseth that: WHEREAS, the STATE, pursuant to 1997 Minnesota Laws Chapter 202, Article 1, Section 26 and Chapter 202, Article 2, Section 52 is empowered to promote recreational programs for youth; and WHEREAS, on November 10, 1997, the STATE issued a Request for Proposals ( "RFP ") seeking proposals from eligible GRANTEES interested in developing or expanding recreational programs for youth; and WHEREAS, GRANTEE's proposal was among those selected to receive grant funds to finance the development or expansion of recreational programs for youth; and WHEREAS, GRANTEE represents that it is duly qualified and willing to perform the services set forth herein, NOW, THEREFORE, it is agreed: I. GRANTEE'S DUTIES GRANTEE shall develop or expand youth recreational programs in accordance with the terms, conditions and specifications set forth in the STATE's RFP and GRANTEE's proposal, which shall be read together, attached hereto and incorporated by referenced as Exhibit A. II. CONSIDERATION AND TERMS OF PAYMENT A. The total obligation of the STATE for all compensation and reimbursements to GRANTEE shall be and shall not exceed ten thousand dollars ($10,000). B. Terms of Payment Payment shall be made by the STATE promptly after GRANTEE's presentation of evidence of documenting that: * at least one half of the grant amount for awards between $2,501 and $5,000 has been paid with funds other than this grant award, or * at least a one -to -one match amount for grant awards between $5.001 and $20,000 has been paid for with funds other than this grant award. *(there are no match requirements for grant awards of $2,500 or less.) Such evidence shall be submitted in a manner prescribed by the STATE (copies of paid invoices by the GRANTEE), and shall constitute compliance with the match requirement. If in -kind capital contributions constitute a portion of the match requirement, evidence of the current market value of the contribution must be submitted. III. CONDITIONS OF PAYMENT All services provided by GRANTEE pursuant to this grant contract shall be performed to the satisfaction of the STATE, as determined at the sole discretion of its authorized representative, and in accord with all applicable federal, state, and local laws, ordinances, rules and regulations. GRANTEE shall not receive payment for work found by the STATE to be unsatisfactory, or performed in violation of federal, state or local laws, ordinances, rules or regulations. IV. TERMS OF CONTRACT This grant contract shall be effective on January 26, 1998 or upon the date that the final required signature is obtained by the STATE, pursuant to Minn. Stat. 1613.06, subd. 2, whichever occurs later, and shall remain in effect until June 30, 1999, or until all obligations set forth in this grant contract have been satisfactorily fulfilled, whichever occurs first. V. CANCELLATION Prior to disbursements of funds, this grant contract may be canceled by the STATE or GRANTEE at any time, with or without cause, upon thirty (30) days written notice to the other party. If the STATE finds that there has been a failure to comply with the provisions of this agreement, that reasonable progress has not been made, or that the purposes for which the funds were granted have not been or will not be fulfilled, the STATE may take action to protect its interests, including requiring the return of all or part of the funds already disbursed. VI. STATE'S AUTHORIZED REPRESENTATIVE The STATE's authorized representative for the purpose of administration of this grant contract is Paul Erickson or his successor in office. The GRANTEE's authorized representative for purposes of administration of this grant contract is . The GRANTEE's authorized representative shall have full authority to represent GRANTEE in its fulfillment of the terms, conditions and requirements of this grant contract. VII. ASSIGNMENT GRANTEE shall neither assign no transfer any rights or obligations under this grant contract without the prior written consent of the STATE. VIII. AMENDMENTS Any amendments to this grant contract shall be in writing, and shall be executed by the same parties who. executed the original grant contract, or their successors in office. IX. LIABILITY GRANTEE agrees to indemnify and save and hold the STATE, its representatives and employees harmless from any and all claims or causes of action, including all attorney's fees incurred by the STATE, arising from the performance of this grant contract by GRANTEE or GRANTEE's agents or employees. This clause shall not be construed to bar any legal remedies GRANTEE may have for the STATE's failure to fulfill its obligations pursuant to this grant contract. X. STATE AUDITS The books, records, documents, and accounting procedures and practices of the GRANTEE relevant to this grant contract shall be subject to examination by the STATE and the Legislative Auditor. XI. DATA PRACTICES ACT The GRANTEE agrees to comply with the Minnesota Data Practices Act as it applies to all data provided by the STATE in accordance with this grant contract and as it applies to all data created, gathered, generated or acquired in accordance with this grant contract. XII. PUBLICITY Any publicity given to the program, publications, or services provided resulting from this grant contract, including, but not limited to, notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the GRANTEE or its employees individually or jointly with others, or any subgrantees shall identify the STATE as a sponsoring agency and shall not be released without prior approval by the STATE's authorized representative. XIII. ANTITRUST GRANTEE hereby assigns to the State of Minnesota any and all claims for overcharges as to goods and/or services provided in connection with this contract resulting from antitrust violations which arise under the antitrust laws of the United States and the antitrust laws of the State of Minnesota. XIV. PREVAILING WAGE GRANTEE hereby acknowledges that acceptance of this grant expressly subjects its construction or renovation or prevailing wage rate statutes (Minn. Stat. 177.41, et seq.). XV. JURISDICTION AND VENUE This grant contract, and amendments and is supplements hereto, shall be governed by the laws of the State of Minnesota. Venue for all legal proceedings arising out of this grant contract, or breach thereof, shall be in the state or federal court with competent jurisdiction in Ramsey County, Minnesota. XVI. GRANTEE SIGNATURES GRANTEE certifies that authorized person(s) have executed the grant contract on behalf of the GRANTEE as required by applicable articles, by -laws or resolutions. XVII. OTHER PROVISIONS (Attach additional pages as necessary.) IN WITNESS WHEREOF, the parties have caused this grant contract to be duly executed. APPROVED: 1. GRANTEE: 2. STATE AGENCY: By_ Title Date By_ Title Date As to form and execution 3. ATTORNEY GENERAL Title - By Date Date May -07 -98 01:25P TONKA 612 - 475 -9178 P -02 WE 9 ONKA UNITED OCCER ASSOCIATION iubleab Budget for Mighty Kids Grant • Jim Hurm, City of Shorewood Dear Jim: ht we can give you a better idea of the After the meeting we had Wednesday nig Kids Grant We are not extremely budget that we are looking at for the Mighty specific on all of the items, and we fees to be u a Freeman Park for es "loose ", especially regarding the monies v improvement. After we talk with you and e e that this senough get us started. we will have a more definite figure to use I hp rant. We The figures we are using below are the figures we are allocating fro the mathing occer u nderstand that To wh a the Wiles of the the Association will be suppl funds in accordance Budget $0,000.00 Coaching /Training provide a We have hired a Director of Recreational Coaching. His main purpose is to p clinic at least twice this summer, to ea ol hof ��156 fecreationai teams. These teams are comprised of players from 4 year We have also hired an intern from England. He is the coach for two of our girls these teams, We teams, grades 8,9 and 10. Befo them. He will also be a� nstnuctorgor the free clinics were going to have to disband we are running this summer and an assistant to the Director of Coaching throughout the year. �3A May -07 -98 01:25P TONKA 612 - 475 -9178 P.03 ► Page 2 May 7, 1998 Ve have earmarked some money for returning college players to assist the coaches if the recreational teams with demonstrations, rules, techniques etc. This program Ellows these former players to give back to their younger counterparts, and the young :ids love it. "his year we have started a mentorship program for our new referees. Experienced eft will go to the recreational games to evaluate, encourage and mentor our first -ear refs. They will be paid on a per game basis. They will also help in the nomination for our referee of the year. This is a program for new referees, usually 12- 3 year olds, in which the winners receive a monetary reward at the end of the .ummer season. Not all of our youth have the desire to be players, so we are going :) focus on other avenues in which to promote participation. = acilities $2,000 — 3,000 'his is where our figures start to get sketchy. We know we would like to do some nprovements to some to the green spaces, fill in holes, plant grass etc. We are insure of the costs involved and the cities involvement. We would also like to • address the parking concerns and help in that area. We would like to look into the :asibility of a temporary net for the softball field's third base line, that could be emoved when not needed. We see the parking issues, the proximity to the baseball elds and the conditions of some of the fields to be safety issues and we would like to Ee part of the solutions. Equipment $1,000 —2,000 1!e have already spent over $4,000 on goals, nets etc. for our recreational program. Vhat we spend on the facilities above dictates how much money we will have left for lis area. We will need to spend upwards of $3,000 to replenish our first aid •upplies. Each coach is given a first aid kit that accompanies the team each time - iey go to the field. We are also hoping to supply coaching equipment (cones and Fennies) for use during practices, clinics and scrimmages. Scholarships again, depending on the expenditures above, we are setting up a scholarship fund to Blow all children that want to play the opportunity to do so. We already have the apability to accomplish this, but we would like to provide balls, shin pads and miforms for these players. administrative Support 'he task of coordinating some 1600 players and 156 + teams is monumental for a olunteer organization. A portion of these remaining funds may be used to offset ome of these expenses. 'hank you for your continued help in this matter, our program and the players will Bally benefit from your support. CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD • SHOREWOOD, MINNESOTA 55331 -8927 • (612) 474 -3236 FAX (612) 474 -0128 • www.state.net/shorewood • cityhall @shorewood.state.net MEMORANDUM TO: Mayor and City Council • FROM: Brad Nielsen DATE: 7 May 1998 RE: Sign Permit — Minnesota Mini - Storage FILE NO. 405 Sign Permits Sign Images, Inc., on behalf of Two S Properties, Inc., requests approval of a permit for signage for the Minnesota Mini - Storage facility currently under construction at 19395 State Highway 7. They propose two wall signs (see Exhibits A and B) to be located on the north and west elevations of the two -story building in the center of their complex. They also propose a freestanding pylon sign (see Exhibit C) to be located in the northwest corner of their site. The proposed sign plan is considered to be consistent with . Shorewood's sign regulations. The proposed wall signs are 48 square feet in area each. The pylon sign contains approximately 128 square feet and is 20 feet in height. The building silhouette (both the east and west elevations are allowed to be counted) contains approximately 5292 square feet of area. The total area of signage is 224 square feet, four percent of the building silhouette (10 percent is allowed). Approval of the sign permit is recommended. cc: Jim Hurm Todd Jones Mark Raiche ► PRINTED ON RECYCLED PAPER �� �� • • N E Q m m O) 0) 0) v N 'V N .-r l0 O 2 n. U 40 .� N y uc) 0 LL 111397 MMSSW 4 1 nmifi elevation Wng A Superior Storage Attn: Todd Jones Suite 305 449 -5755 fax 473 -4548 601 Carlson Parkway Minnetonka, MN 55305 ( 0 , 0 0V TON McWN OE41m 24r WALL SIGN LAYOUT Shor ewood MN kIt ubldltodtotYyO�ouu q�raonnEwa�t rioalMdaowLi�ptoJW6aNp�pYmtd k d I byTv b omf 81 1nkrrosi .lno.5ndtohnwa►t!b� y of ror�nWilon,ror ktoWwed mAra+or Inr iaUgnWlhaAMrntibnpnmwu laloTwkiCltlsn Yyupat.IrcAlorury CA65 sw Wdo r •� tEt y u,l pope�q, o<Adn >�(f ��T� 4 �1 DESIGNERS* BUILDERS* J N S T A L L E R S of lnterfor & exterior sign systems – —• ] 10550 County Road 81 s Suite 116 * Minneapolis, MN 55369 • (812) 424 -6801 Fax 424 -6889 6/F fiadnatad wall mount display • • r') d F Q rb m m m m CD v N d' N �D 9 U c •' v E 0 LL 111997MMssw 4' WC3t elevation W drw A Superior Storage Attn: Todd Jones Suite 305 449 -5755 fax 473 -4548 601 Carlson Parkway Minnetonka, MN 35305 o rMCMN&Xk41MA8 = 24' WALL SIGN LAYOUT Shorewood tAN We a �n aanry� %' -mmmal d600%awled Oy 7Nir ckm up IroWS, Mc Nb�Wmimedtodourp�p�,�wahmnnxtlmv A1MPmWb&DPWmW lbuv u�Wj i 1 Nbdol18b t�b bbovmm"dumdt CPoe� 8�, Idppeti IncaPond�d. CItlNSllpfll 1MGE DESIGNERS* BUILDERS* INSTALLERS of lnfedbr &exterior signsystems —.-0 10550 County Road 81 a Suite 116 • Minneapolis, MN 55369 a (612) 424 -6601 Fax 4248889 .5/F t1m inated w a LL m#Lnt display V d E Q Ql m m 00 0) W c N V N lO i I U T` rn E N 0 W LL a a 7!29197 MMSBX16 grada Superior Storage Attn: Todd Jones Suite 305 449 -5755 fax 473 -4348 501 Cadson Parkway Minnetonka, Mid 55305 is STANDARD PYLON SIGN LAYOUT 5horewaod MN e: 0302U BLUE : YELLOW lfhh b an nN unputl4A�d dui aa.ltl by TMAn Ctia sips inwea Ina khdlay�oouut uwboontrtlbnwdAlMpmjrelb�Ympirrwd foryou6 TwMiOC nr�ImRfrnat>a6��Fwenlo aWidn a fanny RbbawI -- 4copkWor hWv MvnMEnprrr�aNn WARC1Ns In>ry�tisiaNarry anr, gwpiapa�ranln.: DESIG NERS* BUILDERS* INSTALLERS of /ntedor& --* i 10550 County Road 81 * Suite 116 s Minneapolis, MN 55389 a (612) 424 -6601 Fax 424 -8689 : lll''4� 77111 c I 1 • I rn co CD N w • m � 3900 SF J h I . I . I i. LL ((JJ r C I.. h O ' { j Z c � c' C .J N : lll''4� 77111 c Id WU40:0ti 8662 b0 'fiEW 6899 +bzb zt9 : 'ON 3NOHd •ouj 'sa6ewl u61g -;—W oad E.x I 1 • I BLIDG i ♦ ; w • . • 3900 SF J . • I . I . I i. OL r • f C.f ►3`� I.. • • ' { j Z c c' .J ♦ '.. 0 Oct 43 Rl M e y U . ` fi ✓ 1 V E+ Id WU40:0ti 8662 b0 'fiEW 6899 +bzb zt9 : 'ON 3NOHd •ouj 'sa6ewl u61g -;—W oad E.x I 1 • I . • I . I . I 1'• oz -- • a to c' .J ♦ '.. 0 Oct 43 Rl M E+ W Y+ ul E- N (J} (( (� �• O C) W a a. Id WU40:0ti 8662 b0 'fiEW 6899 +bzb zt9 : 'ON 3NOHd •ouj 'sa6ewl u61g -;—W oad E.x -- - c' .J ff f V 0 w (J} (( (� �• ; W z �� 0 ,1� V (D ' � 0 ASr wLO o BM D 2250 9' E' 1 z C/ 6 0 v w a ( W W is Id WU40:0ti 8662 b0 'fiEW 6899 +bzb zt9 : 'ON 3NOHd •ouj 'sa6ewl u61g -;—W oad E.x CITY OF SHOREWOOD RESOLUTION NO. 98- A RESOLUTION GRANTING A CONDITIONAL USE PERMIT FOR A SPECIAL HOME OCCUPATION PERMIT TO NANCY WILLIAMS WHEREAS, Nancy Williams (Applicant) has an interest in certain real property located at 26270 Smithtown Road in the City of Shorewood, County of Hennepin, State of Minnesota, legally described in Exhibit A, attached hereto and made a part hereof; and WHEREAS, the Applicant proposes to build a detached accessory building on the property in which building she intends to operate a cat boarding business; and WHEREAS, the Shorewood Zoning Code requires a conditional use permit to conduct a home occupation within an accessory building; and • WHEREAS, the Applicant's request was reviewed by the City Planner, and his recommendations were duly set forth in a memorandum to the Planning Commission dated 13 April 1998, which memorandum is on file at City Hall; and WHEREAS, after required notice, a public hearing was held and the application was reviewed by the Planning Commission at their regular meeting on 21 April 1998, the minutes of which meeting are on file at City Hall; and WHEREAS, the Applicant's request for a conditional use permit was considered by the City Council at their regular meeting on 27 April 1998 at which time the Planner's memorandum and the minutes of the Planning Commission were reviewed and comments were heard by the Council from the City Staff. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: • FINDINGS OF FACT 1. That the Subject Property is located in an R -lA, Single- Family Residential zoning district and contains approximately 76,800 square feet of area. 2. That the Applicant proposes to build a detached, 24'x30' building to the north and east of the existing home on the property, as shown on Exhibit B, attached hereto and made a part hereof. 3. That the cat boarding building will contain 720 square feet of area, which, when combined with the area of an existing garage and a small utility shed, brings the total area of accessory space on the property to 1084 square feet. 4. That the property is accessed from Smithtown Road which is classified as a collector street. �3c 5 . That the Applicant proposes to construct a "T" type turnaround on the west side of the existing driveway so that cars do not have to back out into Smithtown Road. 6. That the Applicant proposes that all sanitary waste generated by the cat boarding business will be stored in sealed garbage bags inside trash containers inside the building. 7 . That the Applicant proposes to stagger appointments for drop -off and pick -up to minimize potential parking and congestion problems. 8. That use of an accessory building for a home occupation requires a Special Home Occupation Permit which is subject to the conditional use requirements of the Shorewood City Code. CONCLUSIONS 1. That based upon the foregoing, the City Council hereby grants the Applicant's . request for a conditional use permit for a Special Home Occupation Permit. 2. That this approval is subject to the following conditions: a. The Applicant should frame the proposed accessory for future conversion to garage space. b . The driveway turnaround must be completed prior to occupancy of the new building. c. The proposed building must be constructed in compliance with the Minnesota State Building Code. d. Appointments for drop -off and pick -up of cat clientele should be staggered to minimize congestion and parking demand. e. Hours of drop -off and pick -up shall be limited to between 7:00 a.m. and 8:00 p.m. • f. The maximum number of cats to be boarded at any given time shall be 20. g . All sanitary waste must be stored in sealed bags, inside trash containers, inside the proposed building. h . The application shall be reviewed in one year after the business opens to review any complaints received by the City. After the first annual review the application shall subsequently be reviewed every three years. 2 go C CITY OF SHOREWOOD RESOLUTION NO. 98— A RESOLUTION APPROVING A LICENSE FOR A REFUSE COLLECTORS WHEREAS, the Shorewood City Code Section 507.05 provides for the annual licensing of refuse collectors in the City; and WHEREAS, said Section provides that an applicant shall complete an application and fulfill certain requirements concerning insurance coverage and pay licensing fee; and WHEREAS, the following applicant has satisfactorily completed this application and fulfilled the requirements for the issuance of a License for Refuse Collection. NOW, THEREFORE BE IT RESOLVED by the City Council of Shorewood as follows: That a License for Refuse Collection be issued effective upon passage of this resolution and through December 31, 1998, to the following applicant: Permit # Firm Name Address 98 -022 AW Disposal, Inc. 124 Union St NYA, MN 55368 ADOPTED by the City Council of the City of Shorewood this 11th day of May, 0 ATTEST TOM DAHLBERG, MAYOR JAMES C. HURM, CITY ADMINISTRATOR r3D 04/28!98 03:46 License Year • / , Application Fee: $ ` / 7-9 Op CITY OF SHOREWOOD APPLICATION FOR REFUSE COLLECTOR LICENSE (pursuant to City Code Section 507) Date: Company Name: Business Contact: X 612 474 01"8'. ' . V No A,1 P.01 Business / Address:_ ( _ 2 lvy4 Rly Ss -76 g (street) (city) - (zip) Phone: 6 1 2 6 — F9 (business) Description of VqhjcLg s /Ecuipmeat License # Make/Model Weiaht Un aded Yu q s � a6: L - L-3 YM aa 2)-o o VAS �j i W N r� Uo ag AA CoNkL 1 10l' - 0 zk-oiD Charges for C Service Type of Service i p • Charge $ r3• SO Type of Service _� Charge $ p Type Type of of Service Service ,2 Charge $ • ZS Type of Service Charge Charge $ $ Type of Service Charge $ • Post - it' Fax Note 7671 {Date Mr - Phone 4y R4= 28/ ©8: 47 .. . W-39-1-1- C J Insurance: a e• 1 2 474 C1128 F.82 Applicant must provide to the City proof of public liablity insurance coverage for all vehicles to be used by applicant in the licensed business within the City limits of Shorewood. 0 d each person injured Yes No ( } Expiration Date 7 — $ 2�ocC)! D O O maximum coverage for each accident Yes CX No ( ) against loss or damage to property Yes ( ) No ( ) Expiration Date: 7 1 -90P • License Application Fee Application Fee $50.00 plus License Fee $25.00 per truck operating within the City limits I (we) hereby agree to operate the refuse collection business in accordance with the laws of the State of Mi*znesota and the Ordinances of the City of Shorewood. The foregoing statements are true and correct to the best of my knowledge and belief. Company Owner's Signature: Representa Signature: I CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD • SHOREWOOD, MINNESOTA 55331 -8927 • (612) 474 -3236 FAX (612) 474 -0128 • www.state.net/shorewood • cityhall@shorewood.state.net MEMORANDUM TO: Mayor and City Council FROM: Brad Nielsen DATE: 7 May 1998 RE: Sign Permit — Shorewood Yacht Club FILE NO. 405 Sign Permits Mr. John Cross has replaced the old sign for the Shorewood Yacht Club, located at 600 West Lake Street. Having been cited for a zoning violation, Mr.Cross now requests an after - the -fact sign permit for the new sign. The Yacht Club exists as a nonconforming use in the R -IA zoning district. The sign is located on County Road 19, adjacent to the entrance to the Yacht Club property (see Exhibit A, attached). The previous sign consisted of wooden letters attached to an old wooden skiff. The new sign (see Exhibit B) has similar wooden letters attached to a small blue sailboat. The total area of the sign is approximately 32 square feet. Approval of the sign permit is recommended, subject to removal of the banners which are attached to the mast of the sailboat sign, and subject to the sign complying with the five - foot setback requirement from the public right -of -way. Since the sign was erected without a permit, a double fee will be charged for the permit. cc: Jim Hurm John Cross 40 PRINTED ON RECYCLED PAPER �3 E Railroad Crossing & Vista Basement see detail ---� i�t• y r .� � �Y r t/yt. DETAIL: 1 • / 1 1 o ff 0 5a r .F �r A°` Parcel 2 'CD /ive _00 a _ M l [� f I Pa rcel Sd tA �. 18� Easement to C.M.C.C. No. 4008763. Zailroad Crossing and Vista Easement per unrecorded lease agreement. Description The Sast 50.0 feet of Parcels 1 and 2 for vehicle crossing easement. The East 100.0 feet for vista easement r unrecorded lease agreement of arcels 1 and 2 as described hereon. IDIri 130 fi CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD • SHOREWOOD, MINNESOTA 55331 -8927 • (612) 474 -3236 FAX (612) 474 -0128 • www.state.net /shorewood • cityhall @shorewood.state.net TO: Mayor and Councilmembers FROM: Al Rolek, Finance Director �� DATE: May 7, 1998 SUBJECT: Presentation of the 1997 Comprehensive Annual Financial Report and the Audit Report for 1997 Attached is the 1997 Comprehensive Annual Financial Report (CAFR) for the City of Shorewood. This report reports financial activity for 1997 and the financial status of the City at year end. The document contains the audited financial statements and includes the auditor's report relative to the statements. Steve McDonald, the Audit Manager for the City's auditing firm of Abdo, Abdo, Eick & Meyers, will be present at the May 11 City Council meeting to review the report and to answer any questions you may have relative to the report. The CAFR is divided into three sections: the Introductory Section, the Financial Section and the Statistical Section. The Introductory Section contains the a listing of city officials, the organization chart of the City, and the transmittal letter. The transmittal letter contains sections describing the City and its operations for 1997. Information regarding major initiatives being undertaken within the City, analyses of 1997 financial data, and descriptions of city procedures regarding budgeting, investing, debt and risk management is included in the transmittal letter. The Financial Section includes the auditor's report, general purpose financial statements and combining and individual fund and account group statements and schedules, and the notes to the financial statements. This section contains a vast amount of financial information relative to the City's operations during 1997. The notes explain the City's policies and contain detailed information regarding basis of accounting, budgeting, investing, legal compliance, debt service, fixed assets, pension plans, joint ventures, and segment information for the Enterprise funds. The Statistical Section consists of tables of financial information for a ten -year period. There are tables on revenues, expenditures, property tax levies, rates and collections, special assessment collections, debt limit, per capita debt, direct and overlapping debt of the city and other jurisdictions, property values, construction, and other miscellaneous data. This section contains a wealth of historical information which may be used to recognize trends and other factors important to the financial management of the City. PRINTED ON RECYCLED PAPER The City has received the Certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association for its CAFR for the last five years. This award recognizes outstanding achievement in financial reporting and espouses the "spirit of full disclosure ". It is felt that this report continues to meet the high standards of this program. It is my hope that you find the report comprehensive and easy to read. It is presented to give you and the citizens of Shorewood a full view of the financial management and condition of the City. If you have any questions as you read though the report, please feel free to call and discuss them with me. Likewise, feel free to ask any questions to Steve on Monday night. ABDO EICK & RC �1 W LLP Certified Public Accountants & Consultants 7241 Ohms Lane Suite 200 Minneapolis, MN 55439 March 12, 1998 Members of the City Council City of Shorewood Shorewood, Minnesota Professional standards require that we provide you with the following information related to our audit Our Responsibility Under Generally Accepted Auditing Standards and Government Auditing Stand As stated in our engagement letter, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the general purpose financial statements are free of material misstatement and are fairly presented in accordance with generally accepted accounting principles. Our audit is designed to provide reasonable assurance of detecting misstatements that, in our professional judgment, would have a material effect on the financial statements taken as a whole. Consequently, our audit will not necessarily detect misstatement less than this materiality level that might exist due to error, fraudulent financial reporting or misappropriation of assets. As part of our audit, we considered the internal control of the City of Shorewood. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Accounting Estimates Accounting estimates are an integral part of the general purpose financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the general purpose financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements was depreciation on enterprise fund fixed assets. Management's estimate of depreciation is based on estimated useful lives of the assets. We evaluated the key factors and assumptions used to develop this estimate in determining that it is reasonable in relation to the financial statements taken as a whole. Significant Audit Aduustments For purposes of this letter, professional standards define a significant audit adjustment as a proposed correction of the general purpose financial statements that, in our judgment, may not have been detected except through our auditing procedures. We proposed no material audit adjustments. 612.835.9090 • Fax 612.835.3261 Disagreements with Management City of Shorewood March 12, 1998 Page Two For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting or auditing matter that could be significant to the general purpose financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing our audit. Reportable Conditions In planning and performing our audit of the general purpose financial statements of the City of Shorewood for the year ended December 31, 1997, we considered its internal control in order to determine our auditing procedures for the purpose Of expressing our opinion on the financial statements and not to provide assurance on internal control. We noted certain matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of internal control that, in our judgment, could adversely affect the City's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of internal control would not necessarily disclose all matters in internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. We noted the following reportable conditions that we believe to be material weaknesses. Segregation of Duties Our study and evaluation disclosed that because of the limited size of your office staff, your organization has limited segregation of duties. A good internal control structure contemplates an adequate segregation of duties so that no one individual handles a transaction from inception to completion. While we recognize that 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: General Fund The total fund balance increased by $55,958 during 1997. The fund balance at year end was $1,578,910 and is designated for working capital. Favorable budget variances in both revenue and expenditures were achieved. Revenue was $101,796 ahead of budget mainly because of a $62,122 variance in the non - business licenses and permits. Expenditures were $24,074 below budget. UA City of Shorewood March 12, 1998 Page Three We target minimum fund balance for a city your size at approximately 40% of current year expenditures. With total expenditures of $2,169,822 and transfers out of $444,395, the $1,578,910 fund balance is 60.4% of all expenditures and transfers out. This is adequate to meet working capital needs. 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 as well as implementing levy limits. An adequate fund balance will provide a temporary buffer against those aid adjustments and levy limits. • Expenditures not anticipated at the time the annual budget was adopted may need immediate Council action. These would include capital outlay replacement, lawsuits and other items. An adequate fund balance will provide the financing needed for such expenditures. • A strong fund balance will assist the City in maintaining or improving its bond rating. A summary of the 1997 operations is as follows: Revenue Expenditures Excess of Revenue Over Expenditures Other Financing Sources (Uses) Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Variance - Favorable Budget Actual (Unfavorable) $ 2,568,291 $ 2,670,087 $ 101,796 2,193,896 2,169,822 24,074 374,395 500,265 125,870 10,000 - (10,000) (444,395 (444,395) - (434,395 (444,395 (10,000 Excess (Deficiency) of Revenue and Other Financing Sources Over Expenditures and Other Financing Uses $ (60,000 Fund Balance, January 1 Fund Equity Transfer In 55,870 $ 115.870 1,522,952 88 Fund Balance, December 31 $ 1,578.910 March 12, 1998 � Page Four City of Shorewood i L A further detailed comparison of revenue and expenditures are as follows: 1997 Revenue Charge for Services 2% Taxes 64% Other th Interest Fines 4% 3% Licenses 9% �..... b vernmental 17% Percent Increase of (Decrease) Revenue Source 1997 Total 1996 From 1996 Property Taxes $1,703,509 63.80% $1,569,653 $ 133,856 Licenses and Permits 236,672 8.86 205,459 31,213 Intergovernmental Revenue 450,185 16.86 427,468 22,717 Charges for Services 63,209 2.37 45,245 17,964 Fines and forfeits 76,340 2.86 80,826 (4,486) Interest 99,370 3.72 95,711 3,659 Other Revenue 40,802 1.53 33,393 7,409 Transfers from Other Funds - - - - Total Revenue and Transfers $2.670.087 100.00 $2.457.755 212 332 1997 Revenue Charge for Services 2% Taxes 64% Other th Interest Fines 4% 3% Licenses 9% �..... b vernmental 17% City of Shorewood March 12, 1998 Page Five Total Expenditures $1614.217 100.00 $2.479.151 $135,066 1997 Expenditures Public Works 17% Public Safety 29% pital outlay 1% General Government 31% Culture and Rec. Transfers out /0 17% Debt Service 4% 1 /o Percent Increase of (Decrease) Programs 1997 Total 1996 From 1996 General Government $ 807,892 30.90% $ 767,392 $ 40,500 Public Safety 743,617 28.44 689,904 53,713 Public Works 451,756 17.28 472,607 (20,851) Culture and Recreation 114,904 4.40 109,249 5,655 Capital Outlay 14,109 .54 15,813 (1,704) Debt Service 37,544 1.44 - 37,544 Transfers to Other Funds 44 4,395 17.00 424,186 20,209 Total Expenditures $1614.217 100.00 $2.479.151 $135,066 1997 Expenditures Public Works 17% Public Safety 29% pital outlay 1% General Government 31% Culture and Rec. Transfers out /0 17% Debt Service 4% 1 /o Debt Service Funds City of Shorewood March 12, 1998 Page Six Debt service funds are used to account for debt not accounted for in proprietary funds. The following recap matches the assets of each debt service fund with the bonds payable at year end. 1993 Improvement and Refunding Waterford III Tax Increment 1991 Improvement and Refunding Total Cash and Total Bonds Investments Assets Outstanding $ 192,531 $ 254,107 $ 205,000 3,142 6,379 620,000 273.477 502,402 475,000 $ 469,150 $762,888 $ 1.300,000 The 1993 and 1991 Improvement and Refunding issues should have adequate resources to meet their obligations. The Waterford III Tax Increment Bonds are included in the report even though: The bonds issued are tax increment revenue bonds The bonds are not backed by the full faith and credit of the City The bonds will be repaid only to the extent that tax increments are generated from the Tax Increment Financing District. Capital Protects Funds Capital projects funds account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary funds. The following table compares 1997 and 1996: Total $1.763.126 $1.945.545 $1192 . 419 ) Two funds had a deficit at the end of the year. The 1995 Freeman Park Improvement and the Senior Community Center will need to fund the deficits with additional revenue or transfers from other funds. The City has significant reserves in permanent capital projects funds. This will help fund projects without having to issue debt. These funds include Public Facilities/Office Equipment, Park Capital Improvements, Equipment Replacement, Street Reconstruction and MSA Construction. Increase Fund Balance (Decrease) Fund 1997 1996 From 1996 Public Facilities/Office Equipment $ 128,240 $ 138,410 $ (10,170) Park Capital Improvements 163,402 110,864 52,538 Equipment Replacement 91,483 76,387 15,096 Street Reconstruction 1,001,696 969,668 32,028 MSA Construction 230,537 175,812 54,725 Trail Capital Improvements 127,136 95,873 31,263 Strawberry Lane Reconstruction 5,838 - 5,838 1995 Freeman Park Improvement (829) 24,866 (25,695) Senior Community Center (10,716) 376,043 (386,759) Shady Island Bridge Reconstruction 26,339 (25,985) 52,324 Cathcart Park Improvement - 3,607 (3,607 Total $1.763.126 $1.945.545 $1192 . 419 ) Two funds had a deficit at the end of the year. The 1995 Freeman Park Improvement and the Senior Community Center will need to fund the deficits with additional revenue or transfers from other funds. The City has significant reserves in permanent capital projects funds. This will help fund projects without having to issue debt. These funds include Public Facilities/Office Equipment, Park Capital Improvements, Equipment Replacement, Street Reconstruction and MSA Construction. Enterprise Funds Liquor Fund A brief comparison with prior years is as follows: Sales Gross profit Gross profit percentage Operating loss Cash and temporary investments City of Shorewood March 12, 1998 Page Seven Shorewood Plaza Sales Gross profit Gross profit percentage Operating income (loss) Cash and temporary investments 1997 Waterford Center 1997 1996 1995 $ 579,992 $ 517,863 $ 373,862 125,130 104,796 78,946 21.58% 20.24% 21.12% $ (53,735) $ (58,993) $ (58,702) $(140,706) $(101,675) $ - Shorewood Plaza Sales Gross profit Gross profit percentage Operating income (loss) Cash and temporary investments 1997 1996 1995 1994 $ 783,143 $ 713,620 $ 660,437 $ 724,114 161,328 139,470 135,872 149,562 20.60% 19.54% 20.57% 20.65% $ 25,655 $ 19,126 $ 13,896 $ (6,345) $ 137,340 $ 88,650 $ 33,660 $ 105,202 Tonka Ba Sales Gross profit Gross profit percentage. Operating income Cash and temporary investments 1997 1996 1995 1994 $ 513,525 $ 473,557 $ 439,104 $ 25,073 97,416 97,778 93,564 5,886 18.97% 20.65% 21.31 % 23.48% $ 7,780 $ 7,045 $ 3,382 $ 1,799 $ 58,853 $ 65,401 $ 61,490 $ 229,885 Net income as a percent of sales for the three stores in 1997 is as follows: Sales Net income (loss) Net income (loss) as a percent of sales Waterford Shorewood Center Plaza Tonka Bay $ 579,992 $ 783,143 $ 513,525 (54,732) 30,842 10,846 (9.44)% 3.94% 2.12% City of Shorewood -47 March 12, 1998 's Page Eight Gross profit for all three stores was 20.45% in 1997 compared to 20.06% in 196. This improvement still did not help the stores show an overall profit. Waterford Center is the cause for the overall loss. Rent will continue to be a problem for this store as long as sales are below $850,000. If expenses and gross profit remain consistent, Waterford Center will break even at $850,000 of sales. At 12% growth, it will take almost four years to reach a break -even point. The Council needs to seriously consider whether these sales figures can be reached and if they cannot, the liquor operations will continue to lose money. We feel that gross profit and net income as a percent of sales are lower than average for all stores. A realistic target for each would be a 22% gross profit percentage and net income at 6% of sales. Inventory is another area we see potential for improvement. Our previous management letter discussed problems with inventory counts and use of the computer system. It still does not appear the staff is using the computer system properly as evidenced by the large inventory adjustments after the physical counts were done at the end of December. Cycle counts should be done throughout the year so any inventory problems can be identified before year end. The amount of inventory held at year end also appears very high. The total inventory of $322,939 is 17% of sales. We see inventory at 8 -12% of sales in other stores we work with. The Tonka Bay store increased their inventory balance 49% over 1997. Shorewood Plaza's inventory increased 14% from 1996. The problem with high inventory is use of cash that could be invested and obsolescence. We recommend reviewing current balances to see if any reductions could be made. Water Fund A comparison of operations with prior years as a table and graphically follows: Charges for services Permits, connection fees Total revenue Operating expenses excluding depreciation Depreciation Operating income (loss) 1997 1996 1995 1994 $ 231,890 $ 259,228 $ 190,100 $ 184,204 20,976 13,450 8,466 78,688 252,866 272,678 198,566 262,892 (180,601) (170,485) (163,969) (159,179) (91,470 (80,649 (79,617 (77,040 $ (19.205 $ 21.544 45 020) 2$ 6.673 Cash and temporary investments $ 1.074.642 $ 1.056.041 $1.789.611 1286,850 Water Operations $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $(50,000) City of Shorewood March 12, 1998 Page Nine ® Revenue ®Operating income The Water Fund has two debt issues outstanding totaling $2,655,000. The $1,920,000 G.O. Water Revenue Bond was issued in 1995 and currently has a balance outstanding of $1,795,000. Interest rates range from 4.0 to 5.4% and the final payment will be in 2011. The $860,000 G.O. Water Revenue Bonds were issued in 1996 and will be paid through 2012. The operating sales decrease of $27,337 was magnified with operating expense increases of $20,937. Operating income has fluctuated over the past four years. It is important to monitor rates to ensure cash balances do not suffer during these fluctuations. The current cash balances are adequate to fund operations, debt service and capital needs but need to be reviewed at least quarterly. Sewer Fund A comparison of operations with prior years as a table and graphically follows: Charges for services Permits, connection fees Total revenue Operating expenses excluding depreciation Depreciation Operating income (loss) before depreciation Cash and temporary investments 1997 1996 1995 1994 $ 708,058 $ 698,882 $ 679,832 $ 668,530 50,066 20,566 28,741 75,824 758,124 719,448 708,573 744,354 (599,006) (547,946) (520,927) (857,996) (191,393 (190,154 (185,401 18( 3,500 $ (32.275 $ (18.652 1 2.245 $(297,142) $ 1.297.812 $ 1.082.948 LaL8 824 jkK 289 1994 1995 1996 1997 bo- Sewer Operations $800,000 $600,000 $400,000 $200,000 $- $(200,000) $(400,000) ® Revenue ® Operating income Operating losses have been realized three of the last four years but large depreciation expenses have allowed cash to increase each of the last four years. It will be important to maintain cash balances at a level to provide for working capital and capital replacement needs. The current balance of $1,297,812 is adequate. Recycling Fund This fund was established in 1991 to account for the City's recycling activities. A comparison with prior years is as follows: Charges for services Operating expenses Operating loss 1997 1996 $ 71,890 $ 70,535 ( 2,785 7 �) 895) $ (410 City of Shorewood March 12, 1998 Page Ten 1995 1994 $ 46,883 $ 67,605 6( 9,7 7( 0,204 ( 22,851) L-(2 ) Stormwater Management Utility Fund The fund was established in 1993 to account for the activities of the Stormwater Management System. A summary of the four years activities is as follows: Charges for services Operating expenses Operating income 1997 1996 $ 44,911 $ 44,491 (21, 1( 5,033 23 320 29 458 1995 1994 $ 44,336 $ 44,065 3( 1, 011) (21, 788 ) 1$ 3.325 22 277 1994 1995 1996 1997 Other Matters Year 2000 Issue City of Shorewood March 12, 1998 Page Eleven The Year 2000 Issue results from a computer's inability to process year -date data accurately beyond the year 1999. Except in recently introduced year 2000 compliant programs, computer programmers consistently have abbreviated dates by eliminating the first two digits of the year, with the assumption that these two digits would always be 19. Thus January 1, 1965 became 01/01/65. Unless corrected, this shortcut is expected to create widespread problems when the clock strikes 12:00:01 a.m. on January 1, 2000. On that date, some computer programs may recognize the date as January 1, 1900, and process data inaccurately or stop processing altogether. The Year 2000 Issue is likely to affect computer applications before January 1, 2000, when systems currently attempt to perform calculations into the year 2000. Furthermore, some software programs use several dates in the year 1999 to mean something other than the date. Examples of such dates are 01/01/99, 09/09/99 and 12/31/99. As systems process information using these dates, they may produce erratic results or stop functioning. The Year 2000 Issue presents another challenge - the algorithm used in some computers for calculating leap years is unable to detect that the year 2000 is a leap year. Therefore, systems that are not year 2000 compliant may not register the additional day and date calculations may be incorrect. Most of the City's finance software should be already year 2000 compliant but it is important to review all areas where date - dependent computer information is needed and correct any deficiencies. We recommend the City implement verification procedures to test the accuracy of information received from its vendors, service providers, bankers, customers and other third -party organizations with whom it exchanges date - dependent information, because these organizations also must become year 2000 compliant. The City also should satisfy itself that vendors, service providers, bankers, customers and other third -party organizations will not experience problems relating to the Year 2000 Issue that could affect the City's operations or cash flow. Legal Compliance There was one finding noted in our report on Legal Compliance with State Statutes. In accordance with Minnesota Statute Section 574.26, the City did not receive a payment or performance bond from a contractor on a project that was bid. We recommend a checklist be used to ensure all required statutes are followed. 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. W )go l l a& e !��k I &yza_� LL-1 March 12, 1998 ABDO, ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota Certified Public Accountants M ABDO w. ABDO C� EICK � �� _ 1VJLL'r 1 L' RS LLP Certified Public Accountants & Consultants 7241 Ohms Lane Suite 200 Minneapolis, MN 55439 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS Honorable Mayor and City Council City of Shorewood, Minnesota We have audited the general purpose financial statements of the City of Shorewood, Minnesota as of and for the year ended December 31, 1997 and have issued our report thereon dated March 12, 1998. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under GovernmentAuditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting 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 over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting 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. Our study and evaluation disclosed that because of the limited size of your office staff, your organization has limited segregation of duties. A good internal control structure contemplates an adequate segregation of duties so that no one individual handles a transaction from inception to completion. While we recognize that 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 reportable condition. 612. &35.9090 • Fax 612.835.3261 '�• Page Two A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. We also noted other matters involving the internal control over financial reporting that we have reported to management of the City in a separate letter dated March 12, 1998. This report is intended for the information of the City Council, management and the Office of the State Auditor. However, this report is a matter of public record and its distribution is not limited. s LAP March 12, 1998 ABDO, ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota Certified Public Accountants M&1ABDO P4 � EICK & �, 1Y MRS LLP Certified Public Accountants & Consultants 7241 Ohms Lane Suite 200 Minneapolis, MN 55439 INDEPENDENT AUDITOR'S REPORT ON LEGAL COMPLIANCE Honorable Mayor and City Council City of Shorewood, Minnesota We have audited the general purpose financial statements of the City of Shorewood, Minnesota as of and for the year ended December 31, 1997, and have issued our report thereon dated March 12, 1998. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government promulgated by the Legal Compliance Task Force pursuant to Minnesota Statute Sec. 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested, the City complied with the material terms and conditions of applicable legal provisions, except as follows: For one project, the City did not receive a performance or payment bond from the contractor required under Minnesota Statute Section 574.26. Further, for the items not tested, based on our audit and the procedures referred to above, nothing came to our attention to indicate that the City had not complied with such legal provisions. This report is intended solely for the use of the City Council, management and the Office of the State Auditor and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. March 12, 1998 Minneapolis, Minnesota ABDO, ABDO, EICK & MEYERS, LLP Certified Public Accountants 612.835.9090 • Fax 612.835.3261 ' (o) m64 PAfl OF LOT 76 1 0) NO 70 301.17 S89'22'E E LINE LOT 4 MINNEWASMA PARK F OF LOT N89'32' 14 W 254. 5' LOTT 27) ADDN L TT 2 6.21 74 PART OF L07 26 Trail to be located CY- within the south side of TH 7 ROW 6, (16) 2130 DA�Krmdu LA .33 43 WIL .......... AR Bov, Av i= Shorewood - Chanhassen Corporate Boundary CITY OF SHOREWOOD RESOLUTION NO. 98— A RESOLUTION PROVIDING FOR APPOINTMENTS TO THE AD HOC LAND CONSERVATION COMMITTEE WHEREAS, Resolution #98 -025 establishes an Ad Hoc Land Conservation Committee; and WHEREAS, said resolution appoints Dean Riesen as Chair of the Ad Hoc Committee; and WHEREAS, said resolution calls for two additional residents to be members; and WHEREAS, Dean Riesen has recommended Frank Svoboda and to be appointed to said Ad Hoc Committee. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood that Frank Svoboda and are hereby appointed to the Ad Hoc Committee on Land Conservation established in Resolution #98 -025. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 11th day of May, 1998. ATTEST TOM DAHLBERG, MAYOR JAMES C. HURM, CITY ADMINISTRATOR • U CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD • SHOREWOOD, MINNESOTA 55331 -8927 • (612) 474 -3236 FAX (612) 474 -0128 • www.state.net/shorewood • cityhall @shorewood.state.net • MEMORANDUM TO: Mayor and City Council James Hurm, City Administrator FROM: Larry Brown, Director of Public Works1 DATE: May 7, 1998 RE: Consideration of a Motion to Adopt a Resolution Authorizing the Mayor and City Administrator to Enter into an Agreement With the Riley Purgatory Bluff Creek Watershed District to Serve as the Local Governmental Unit Regarding the Wetland Conservation Act The Board of Water and Soil Resources requires each municipality to designate the Local Governmental Unit to serve as the administrator of the Wetland Conservation Act of 1991. The southeast area of the City of Shorewood Lies within the Riley Purgatory Bluff Creek Watershed District. This District has served the City of Shorewood for many years as the • LGU in analysis and administration of the WCA rules. In addition, this Watershed District has been very efficient and responsive to questions or concerns raised by City staff in the administration of the WCA rules. Therefore, staff is recommending that attached resolution which authorizes the Mayor and City Administrator to enter into an agreement with the Riley Purgatory Bluff Creek Watershed District as the LGU. A resolution is attached for your consideration. C ob PRINTED ON RECYCLED PAPER VIP/'/ CITY OF SHOREWOOD RESOLUTION NO. 98- A RESOLUTION AUTHORIZING THE MAYOR AND CITY ADMINISTRATOR TO ENTER INTO AN AGREEMENT ESTABLSHING THE LOCAL GOVERNMENTAL UNIT FOR ADMINISTRATION OF THE WETLAND CONSERVATION ACT WHEREAS, the Minnesota Wetland Conservation Act (WCA) of 1991 requires local government units (LGUs) to implement the rules and regulations promulgated by the Board of Water and Soil Resources (BWSR) pertaining to wetland draining and filling; and WHEREAS, the BWSR is requesting LGUs adopt the permanent rules of the WCA to notify them of the LGU decision regarding adoption; and WHEREAS, The Riley Purgatory Bluff Creek Watershed District has served the City • of Shorewood previously as the LGU for that portion of the City which lies within said watershed district boundary; NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Shorewood as follows: 1. That the Mayor and City Administrator are hereby authorized to enter an agreement with the Riley Purgatory Bluff Creek Watershed District to act as the Local Governmental Unit for the administration of the rules of the Wetland Conservation Act of 1991, for that portion of the City which lies within the Riley Purgatory Bluff Creek Watershed District. ADOPTED by the City Council of the City of Shorewood this 11` day of May, 1998 • Thomas Dahlberg, Mayor ATTEST: James C. Hurm, City Administrator /Clerk CITY OF SHOREWOOD RESOLUTION NO. 98- A RESOLUTION MAKING APPOINTMENTS TO THE SHOREWOOD PARK FOUNDATION BOARD OF DIRECTORS • • WHEREAS, per the directives of the Articles of Incorporation of the Shorewood Parks Foundation, the Shorewood City Council makes appointments to the Board of Directors for the Foundation; and WHEREAS, the Bylaws for the Foundation require that each Director be appointed for three years or until his or her successor shall have been appointed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood that the Shorewood Park Foundation Board of Directors consists of the following individuals, and that the highlighted individual is hereby appointed with the term to take effect immediately and shall expire as indicated herein: Term First Expires Organization Appointee Appointed 3/15/99 Tonka Football Association Jim Wilson 5/96 3/15/99 South Shore Softball Scott Hanson 7/94 3/15/99 Senior Representative Robert Noren 5/96 3/15/99 Shorewood Park Commission Ken Dallman 7/94 3/15/99 At Large Bill Keeler 9/94 3/15/00 American Legion Donald Kronberg 6/96 3115100 Minnetonka Youth Hockey Assoc. Don Aslesen 10/97 3/15/00 Rotary Club Don Kelly 3/95 3/15/00 Minnetonka Community Education Tad Shaw 7/94 3115/00 At Large Gordon Lindstrom 7/94 3/15/01 Shorewood Park Commission Chuck Cochran 3/98 3/15/01 At Large Ann Packard 3/98 3/15/01 Tonka Men's Club Jim Latterner 7/94 3/15/01 South Tonka Little League David Anderson.519$' 3/15101 Tonka United Soccer - Non - Voting, City Administrator James C. Hurm 7/94 - Non- Voting, City-Council ember. Roger Champ 5/9$' ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 11th day of May, 1998. ATTEST TOM DAHLBERG, MAYOR JAMES C. HURM, CITY ADMINISTRATOR CITY OF SHOREWOOD RESOLUTION NO. 9& A RESOLUTION MAKING APPOINTMENTS TO CERTAIN OFFICES AND POSITIONS WITHIN THE CITY OF SHOREWOOD FOR THE YEAR 1998 WHEREAS, it has been the policy of the Shorewood City Council to make annual appointments to fill certain offices and positions within the City government at the beginning of each year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: That the following persons are appointed to the following offices and positions until the 1998 City Council organizational meeting: Acting Mayor: Councilmember Kristi Stover Council Representatives to: a. Park Commission Liaison: Roger Champa b. Planning Commission Liaison: Jerry O'Neill C. Liquor Stores: Tom Dahlberg and John Garfunkel d. Minnehaha Creek Watershed District: Jerry O'Neill e. Lake Minnetonka Cable Commission: f. Association of Metro Municipalities: Tom Dahlberg g. Coordinating Committee South Lake Minnetonka Public Safety Department: Tom Dahlberg h. Backup to Mayor on Coordinating Committee South Lake Minnetonka Public Safety Department: Jerry O'Neill Representatives to Affiliated Organizations: a. Lake Minnetonka Conservation District: Robert Rascop b. Lake Minnetonka Cable Commission: Jeff Foust C. Minnetonka Community Services: Tad Shaw City Attorney: John Dean, Kennedy & Graven City Prosecutor: Kenneth N. Potts Emergency Preparedness Director: SLMPSD Police Chief Richard Young � !3 CITY OF SHOREWOOD RESOLUTION No. 98— Page Two: Annual Appointments 1998 Official Depositories: First State Bank of Excelsior, 4M Fund & other Depositures as necessary Official Newspaper: Sun/Sailor Newspaper Weed Inspector: Mayor Tom Dahlberg Assistant Weed Inspectors: Charles Davis & Joe Lugowski 2. That the Blanket Bond (Official Bonds) is approved. 3. That such appointments shall take effect on the date hereof and shall continue for the remainder of the year or until such time as a successor is appointed by the City Council. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 1 Ith day of May, 1998. ATTEST TOM DAHLBERG, MAYOR JAMES C. HURM, CITY ADMINISTRATOR • CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD • SHOREWOOD, MINNESOTA 55331 -8927 • (612) 474 -3236 FAX (612) 474 -0128 • www.state.net /shorewood • cityhall @shorewood.state.net MEMORANDUM TO Mayor and City Council: James Hurm, City Administrator FROM: Larry Brown, Director of Public Works A)t, �% DATE: May 10, 1998 RE: Consideration of a Motion for Appointment to the Position of Light Equipment Operator. Over the last two weeks, interviews have been conducted to replace the vacant position of a Light Equipment Operator in the Department of Public works, due to the retirement of Ralph Wehle last April. The interview process for the potential candidates was very rigorous and involves the following steps: • Initial selection based upon credentials • Written exam • Equipment knowledge and operations test • Oral interviews. This selection process has proved very effective in the past. A majority of the Public Works Department is involved in the evaluation at various steps of the interview process. This has resulted in obtaining competent individuals who are team players. The successful candidate is Brad Mason. Mr. Mason scored high in all of the steps of the interview process, and is known to be a very diligent worker at his present position. It is also noteworthy that Mr. Mason has been at his present position for 15 years. Therefore, it is recommended that Brad Mason be appointed to fill the vacancy of Light Equipment Operator. If approved, Mr. Mason will start with the City of Shorewood on a standard 6 month probationary period. After the probationary period, his performance will be reviewed for consideration of a permanent appointment to the Light Equipment Operator's position. 40 PRINTED ON RECYCLED PAPER i 2 C MAR 2 a 1998 March 18, 1998 City of Shorewood 5755 Country Club Road Shorewood, MN 55331 -8927 To Whom It May Concern, This letter and-accompanying resume are an attachment to the application for the Light Equipment Operator position. My resume speaks of my expertise in equipment operation and maintenance. With my accident free work and driving record_I believe I would be an asset to the City of Shorewood's Public Works team.. I hope to learn more and discuss this opportunity further with You.. Thank you in advance for your consideration. Sincerely, -Brad Mason BRADLEY T. MASON 1385 County Road 110 N. Minnetrista, MN 55 612. 472 -1613 WORK HISTORY DAWSON BLACKTOPPING, INCORPORATED - St. Bonif.acious, MN 198.3 to Present Operate and drive skid - loader tandem axle dump trucks. Paver, roller, grader, single and material and customer Coordinate and-schedule work crews, customers. Layout Recommend and propose projects for for blackto Layout r. °adways, drainage and grade -in p surfaces by .using preparation materials for base, blacktop adrfjjt.and levels. CaIcul.ate equipment and machi.ner n Routinely service all and Q v ines b rebuild' drivetrains, hydraulics, a as env Y rebuildin diesel equipment modifications. Succes Ll eldg, painting and 'performing yearly Department of Transportation safety ehicles for y ins inspections. MUSICLAND GROUP - St. Lou Park, " 1982 - Present" MN Operate semi- tractor �trail "er f°r interstate trans -o product. Maintained current - road fogs and made schedulednsto on time. Controlled pick -u.p and dell-very yinventor ps driver on -call during winter season: -. Relief DON ;ZDRAZIL TRUCKING .= " Shorewood, MN Operate single and tandem-axle trucks, skid- loaders equipment for excavation. Provided - commercial snow remov and. heavy services.:. Performed maintenan- ce.and repair on all equipment. SHOREWOOD TREE.SERVICE. Shorewood,.MN ,Operated ;clam .truck - Cut trees; ..brush nd cleari Performed routine and la maintenance on,:chain saws,. scum chippers ngs. and vehicles: P grinder, EDUCATION - Mound Westonka High Schoo -l- _Hi Hennepin County" Technical Schoo.School Diploma - 1977 -Advanced-Arc Welding Cert i f i.cate 1986 LICENSES Minnesota Commercial Drivers - License Endorsements: Doubles /Triples and Non Tanker ADDENDUM TO CITY OF SHOREWOOD EMPLOYMENT APPLICATION POSITION: LIGHT EQUIPMENT OPERATOR TO ALL JOB APPLICANTS: Completion of this addendum is required as employment process in order to more accurately part of the City's evaluate your qualifications for the position of Light Equipment Operator: A. Did you graduate from high school? NO If yes, which if no, do you-have a GED? YES NO B. Do you hold a Class B commercial r&vers l with a non- flammable taker endorsement. If no, ty of current drivers license: C. Describe any public works or related field experience you may have. List name of City /Company, number of-years of - service, job title and duties: expertise and /or interest in specialty areas (% a auto D. List exp k -or. street maintenance service, tree /weed inspection, p utilities, welding):,{ - .i rg ES �/n oar -ae E. _Salary_ Expectations g Commute time-if- hired t i G. Are you applyiag..for.Veteran. "s Bonus Poiats?` YES N (If yes documents must be submitted.) afore ;S t _ v1$ City of Shorewood Address: / 3,�- Cv• P` I le) /'i. Number Street Apo Number U/N t) S5 -764 City State Zip Code Phone: y 72 " J 13 Home work Social Security Number : y22-- 79 - SsX Are you a citizen of the United States? e No If you are not, do you have Bureau of Immig approval to worts in the U.S.? (If hired by the City you are required to show proof of eligibility.) Are you willing and available to work overtime and shift work? No Have you served a sentence in jail or been convicted for a misdemeanor or felony for which a jail sentence could have been imposed�? Yes ( 1 (You may answer "no" if the conviction or criminal recordi have been annulled, sealed, set - aside, or purged or if you have been pardoned pursuant to the law.) If "yes," please attach a separate sheet with an explanation. Information concerning this question will not be used to automatically bar you from employment. Type of Work: Permanent Part-Time 7 w - c) Temporary Seasonal Date Available. , Circle the highest High Schoo College Post Graduate Grade Completed: 9 10 11 &-r GED 13 la 11 16 TMA or PhD Position Ap for: G16:1-17- rQUIPiwtZ 7T GPIrR1 Name: j� R�� J! J TneOI Last First Nfiddle Educational Information Name and address Course of Last vear I Did you or degr ee ma School of School Study completed Graduate? obtain High School CAI/Vq OV;_S I 2 3 © No ,c�,Lip l , Jar PLJ�t,4 College l 2 3 4 Yes No Other 1 '7 3 (S 4' Yes No peci I Special Skills and Qualifications List any correspondence courses, seminars, workshops, training, and skills acquired that might relate to this position and summarize special Job- related skilIs and qualifications acquired from employment or other experience. Co L/A , � J Wl- QPVG Ah List any current licenses, registrations, or certificates that you possess. Include drivers license number, class and State of issue. L G1,4 SS __ / IL41V14n /iv /fFl1 ' Emnlovment Experience (Start with the most recent em 1. plover <raP P;N 1 Dates Employed Work Performed &JA wSo�/i From To Address Si 1/6 r or_,A 19r-3 I AjZc- Telephone Numberts! Hourly RawSalary Startine Final Job Title Supervisor 6;� f�Aw� r�� 'q � Reason For Leaving ,50IS,N'f Ir�(t P-OLINO Errs PLOD` nlc -jvT 2. Employer Dates Employed Work Performed. /C` 4 AJ �jlZO U P From To Address sr. 2-c is P1912N &91- 1 15'�6 Telephone Numbers) /Ylvvrz fl e r sr/9 Houriv RawSalary �vc� 0R J'"2 Starting Final Job Title Supervisor Reas For Leaving A r_Z/r:.F 1)21 vF_ fL b/v -Calf 3, plo �Q Dates Employed Work Performed Ltw A A214 T/ZL'Ci( /NG From To Address rs"'ril` Telephone Nu bents) Hourly Raw Jalary Startine Final Job Title ��C UUC IJ� 1 V �. S � Reason For Leaving 4 Employer �, . S;�G�,F we /it r; F_ Sin U® Dates Employed —From TO Work Performed Sir Address n j v �` Telephone Number(s) Hourly RateiJalary Starting F lob Title L, a avz P, Supervisor C G.A 4- NEt Reason for Leaving ''ir you neea aQQliional space please Wrl:e Ull Lilo UULA v< U11 -�icc: Are you applying for veteran's bonus points? Yes 9-N VETERANS PREFERENCE POINTS APPLICATION Veteran If spouse, veteran's name: Self Spouse Branch of Service: Period of Active Duty: From: To: Rank at Discharge: Type of Discharge: Date of Final . Service No. Discharge: Are you receiving or eligible for a military o you have a compensable service- related pension? injury? Yes No Yes No Preference Requested: Veteran Disabled Veteran Spouse of Disabled Veteran Souse of Deceased Veteran Your Preference Points application cannot be considered without supporung documentation (see instructions above). If the documentation is not attached, it must be received in our office no later than 7 calendar days after the application deadline for the positron in order to guarantee points are awarded in a timely manner. Will be submitted Supporting Documentation: is attached within 7 days of deadline ::. FOII OFFICEUSE ONLY Foie€ 10'Points Message Left on the Shoreline 5/1/98: Hi, my name is Ann Leland, and my home number is 470 -6996. I can be reached during business hours at 742 -4591. Got a new idea for you. Maybe during events at Minnewashta School, I live across the street from, maybe they should be limiting parking to one side of the street. It makes Strawberry Lane and Smithtown Road, particularly Strawberry Lane, virtually impassable, and for those of us who have to run errands and leave our homes when something is going on posses a possible danger to us, our vehicles, people walking along the street, other vehicles. I think it is a serious enough problem to be addressed. Please give me a call. Thanks. 40 10 Message Left on the Shoreline on 5/4/98: Good afternoon, this is Dave Littlefield from 24775 Glen Road, telephone 474 -1783, daytime 886 -6107. I am calling regarding the stormwater drainage problems. I just wanted to make sure the Glen Road situation is on the agenda. I will be, business people are coming in so I will be out late Wednesday at dinner. However, it has been a long standing question that has gone through the Lake Minnetonka Watershed District and is related to the Christopher Lane construction where there was supposed to be stormwater drainage holding pond built, wasn't built and there have been other recommendations down at the corner of Country Road 19 and Glen Road because of past flooding problems. so I am hoping that is still on the agenda and hasn't been lost over time. A couple of years ago I stopped in and they said it was going to be in the Capital Improvements budget for 1996- 97, something like that. So I am just curious if something is being scheduled and is on the list of projects that relate to stormwater damage. Thank you very much. 0 Message Left on the Shoreline May 6, 1998: Yes, my name is Peter Kizilos -Clift and my phone number is 401 -3330 and we are residents of Shorewood and I am calling about the stormwater drainage problem, the management study that is going on and we wanted to make sure you had a sense of our situation. We are at 26395 Peach Circle and we have had some very significant drainage problems on our property. We are new to this home. We just purchased it in March and moved in in March. As soon as we moved in in March we had our whole backyard flooded with water and basically because the water had no where to drain, it stayed there for several days and we are very concerned about it. We talked to the previous owners of the property and they said that is a very common occurrence that it gets very flooded in the back and we are talking about a pretty significant area, and also on the side of our house that is adjacent to Strawberry Lane. We had talked about this concern we have when the meeting was conducted about Strawberry Lane a few weeks back, maybe a month ago about the repair and renovation of Strawberry Lane. There is a real problem with this particular property. We have had our sump pump go off constantly since we moved in, and we would really like to be sure that you are aware of the situation on our property as you go forward with your stormwater management study. Right now there really is no place for the water to go, to drain off of our property so we really would like to make sure something is done about this. Could somebody call to ensure someone received this message. I look forward to hearing from someone. Thank you. • r 1' CHECK APPROVAL LISTING FOR MAY 11, 1998 COUNCIL MEETING CHECKS ISSUED SINCE APRIL 24, 1998 • • CK NO TO WHOM ISSUED PURPOSE AMOUNT 22904 US POSTMASTER WATER METER CARD POSTAGE $181.32 22905 US POSTMASTER MAY NEWSLETTER POSTAGE 555.01 22906 PERA PERA 2,878.48 22907 ICMA RETIREMENT TRUST 457 DEFERREDCOMP 1,173.07 22908 CITY COUNTY CREDIT UNION PAYROLL DEDUCTIONS 1,025.77 22909 ANOKA CO SUPPORT /COLLECT CHILD SUPPORT -C. SCHMID 156.50 22910 MN DEPARTMENT OF REVENUE STATE TAX WITHHELD 1,319.67 22911 KATHLEEN HEBERT SEC 125 REIMB 192.30 22912 JAMES HURM E)PENSES 18.88 22913 JOSEPH LUGOWSI4 SEC 125 REIMB 203.22 22914 BRADLEY NIELSEN CONF. EXPENSES /SEC 125 REIMB 362.87 22915 JOSEPH PAZANDAK MILEAGE/FILM DEV 64.78 22916 US WEST COMMUNICATIONS /ADVERTISING 1,415.05 22917 HONEYWELL PROTECTION QTRLY MONITORING 103.25 22918 QUALITY WINE & SPIRITS LIQUOR 266.68 22919 PERA MAY PERA LIFE INSURANCE 33.00 22920 MEDICA MAY HEALTH INSURANCE 5,223.75 22921 HEALTH PARTNERS MAY HEALTH INSURANCE 3,188.06 22922 LEAGUE OF MN CITIES MAY DENTAL INSURANCE 587.02 22923 MN MUTUAL LIFE MAY DISABILITY 90.00 22924 UNUM LIFE INSURANCE CO MAY LIFE INSURANCE 89.60 22925 AFSCME COUNCIL 14 MAY DELTA DENTAL 224.00 22926 CITY OF TONKA BAY MAY RENT /RENT ON 97 SALES 3,270.50 22927 ROB CORNILA BOARDING REFUND 40.00 22928 GRIFFIN COMPANIES MAY RENT -LIQ 1 7,618.50 22929 TOWLE REAL ESTATE CO MAY RENT LIQ II 3,590.45 22930 NORTHERN STATES POWER UTILITIES 2,016.07 22931 US WEST COMMUNICATIONS 188.68 22932 WASTE MANAGEMENT WASTE REMOVAL -MAY 221.08 22933 MICHAEL LAZARETTI REFUND WATER TRUNK CHARGE 1,109.92 22934 BELLBOY CORP. LIQUOR PURCHASE 3,733.01 22935 BELLBOY BAR SUPPLY MISC/SUPPLY PURCHASE 523.52 22936 DAHLHEIMER DISTRIBUTING BEER PURCHASE 452.72 22937 EAST SIDE BEVERAGE CO BEER/MISC PURCHASE 41,586.65 *CHECK NUMBER 22938 -22968 VOID DUE TO CHECK STOCK ERROR* 22969 GTE DIRECTORIES ADVERTISING 56.85 22970 GRIGGS, COOPER & CO. LIQ/WINE/BEER/MISCPURCHASE 10,267.88 22971 JOHNSON BROS. LIQUOR CO. LIQUOR/WINE/BEER PURCHASE 9,531.68 22972 LAKE REGION VENDING MISC PURCHASE 1,461.00 22973 LEEFBROS. MATS 26.20 22974 MARK VII BEER/MISCPURCHASE 8,829.70 Page 1 - 4 Klro CHECK APPROVAL LISTING FOR MAY 11, 1998 COUNCIL MEETING CHECKS ISSUED SINCE APRIL 24, 1998 • • CK NO TO WHOM ISSUED AMOUNT 22975 PAUSTIS WINE COMPANY 22976 PHILLIPS WINE & SPIRITS 22977 QUALITY WINE & SPIRITS 22978 THORPE DISTRIBUTING 22979 THE WINE COMPANY WINEBEER PURCHASE LIQUORIWINE PURCHASE LIQUOR/WINE PURCHASE BEER/MISC PURCHASE WINE PURCHASE $1,063.46 8,673.70 3,370.37 9,519.75 180.71 TOTAL CHECKS ISSUED Page 2 ' . CITY OF SHOREWOOD CHECK APPROVAL LIST FOR MAY ll. 1996 COUNCIL MTG CHECK* VENDOR NAME DESCRIPTION DEPT. AMOUNT -------- ------------------------- ------------------------ -------- ----------- 22980 GARCO MUNICIPAL PRODUCTS SAFETY VESTS CITY GAR 54'16 2198I COORDINATED 8U3lHES3 SY3i QTRLY COPIER MAlNT MUN BLDG 447-00 22982 CROSSTOWN-OC3, INC. COFFEE MUN BLDG 10I.97 22983 EXCELSIOR ROTARY CLUB QTRLY DUES ADM 40-00 . MEALS ADMlN 120-0() TOTAL FOR EXCELSIOR ROTARY CLU I60'00 22984 E-I RECYCLING INC. APRIL RECYCLING CONTRACT RECYCLlH 4,920.00 22985 FlHA FLEET FUELING FUEL CITY GAR 299.56 1112986 HEHHEPIH COUNTY TREASURER MARCH PRISONER EXP POLICE P 308'00 22987 HEHN CO GENERAL SERVICES AS PROPERTY TAXES MUN BLDG I,909-79 22988 MARTIN, JAMES A. COMPUTER CONSULTING GEH GOVT 1,0sO-0O 22989 OFFICE DEPOT OFFICE SUPPLIES GEH GOVT 357-7s 22990 MlNHCOMM PAGING PAGER CITY GAR 8'63 22991 MM SUN PUBLICATIONS LEGAL AD GEN GOVT 89-28 22992 MlHNEGASCO UTILITIES WATER DE 62,64 UTILITIES WATER DE 88.58 UTILITIES LIQUOR 77.0� UTILITIES WATER DE 83'&l UTILITIES UTILITIES CITY GAR PARKS & I95'29 43-47 UTILITIES MUN BLDG I04.26 UTILITIES LIQUOR 41. 08 UTILITIES LIQUOR 12.02 TOTAL FOR MlNNEGASCO 7Os'5O 22995 WM. MUELLER & SONS, INC. SAHD/ROCK-SlLYERN000 PK PARKS & 285'65 22994 PAWS, CLANS & HOOVES PET APRIL BOARDING/MAY SVC PROT INS 726~27 22995 PITNEY-BOWES INC. POSTAGE MACHINE RENTAL MUN BLDG 223`20 22996 POMMER COMPANY, INC. PLAQUE-KOLSTAD COUNCIL 56-47 22997 POTTS, KENNETH N. APRIL PROSECUTIONS PROF SER l. Soo. 3� 22998 COMPUTER MAHAGEMEN[ SvC FINANCE USER GROUP hTG FINANCE lOO'OO 22999 RlCMAR INDUSTRIES BLDG MAlhT CITY GAR I41-4I 23000 SMORENOOD TREE SERVICE TREE REMOVAL. TREE MAl 239'63 23001 SHORENOOD TRUE VALUE ROPE-CHRISTMAS LK CULVER CITY GAR 78'60 Page 3 E • COMPUTER CHECKS 21936-02 MANUAL CHECKS .00 NOTICES OF DEPOSIT ****TOTALS*=** 21936-02 Page 5 CHECK REGISTE;- CHECK CHECK EMPLOYEE NAME CHECK CHECK TYPE DATE N U N B NUMBER A ill 0 U hi i COIN 4 28 98 109 EMILY G BASTYR 212897 21.....2 cum 4 28 98 110 CONNIE D. SASTYR X1 9 -8- 41'6.7 CON 4 28 98 115 LAWRENCE A. BROWN 212399 1521.75 cum 4 28 98 170 RYAN C. BLECHTA 212900 65.53 CON 4 28 98 325 ANGELA M. COLE 212901 253.31 CON 4 28 98 350 THOMAS A. DAHLBERG 212902 230.8. cum 4 28 98 500 CHARLES S. DAVIS 212903 769-97 cum 4 28 98 775 JAMES C. EAKINS 212904 7 4 0 . 9`5 cum 4 28 98 1100 jOHN j. GARFUNKEL 212905 184. YQ CON :} 28 98 1160 TWILA R. GROUT 212906 531.01. CON 4 28 9S 1190 KATHLEEN A . HEBERT 212907 582.29 C C M. 4 2S 9B 1400 PATRICIA R. HELGESEN 212908 523.6 cum 4 23 98 1410 PAMELA j. HELLING 212909 535.46 CON 4 2B 9S 1• 30 KELLY M. HENTGES 212910 CON 4 28 98 1550 JAMES C. HURM 212911 1721.90 CON 4 28 98 1575 TROY M, !YES 212912 105 . 0.5z CUM 4 28 98 1601 BRIAN D. jAKEL 212913 225.47 , ". i"i K 4 21 9S 1675 UROS jELICIC 212914 38. 79 4 28 98 1700 JEFFRE Y A. JENSEN 212915 933.92 cum CON 4 28 98 1800 DENNIS 0. JOHNSON 212916 919.61 CON 4 28 98 1950 MARTIN L. JONES 21291 . 68. 8' CON 4 28 98 2110 WILLIAM F. JOSEPHSON 212918 6..9. CON 4 28 98 2495 MOLLY D. t TTERNER 21291"a 65.%5 CON 4 28 98 2500 SUSAN M. LATTERNER 212920 664.75 CON 4 28 98 2800 JOSEPH P. LUGOWSKI 212921 840.76 4 26 98 2805 JASON R. LUND 2129 22 597-56 COM cum 4 28 98 2900 RUSSELL R. MARRON 212923 32. 3-5 cum 4 28 98 2950 JENNIFER T. MCCARTY 212924 182. 85 cum 4 2S 9S 3000 THERESA L. NAAB 212925 633.22 4 28 98 3100 LAWRENCE A. NICCUM 212926 1151.34 cum CON 4 28 9S 3400 BRADLEY j. NIELSEN 212927 904.9(, CON 4 28 98 3430 GERALD A. U' NF 212928 184.70 CON 4 28 98 3435 ANDREW C. OTTEN 212929 23. 0 9 CON 4 28 98 3500 JOSEPH E. PAZANDAK 212930 1116.77 CON 2S 98 3580 CHRISTOPHER J. POUNDER 212931 S88.47 CON 4 28 98 3600 DANIEL J. RANDALL 212932 931-95 cum 4 28 98 3701 BRIAN M. ROERICK 212933 87.52 cum 4 23 98 5800 ALAN j. ROLEK 212934 1150.65 CON 4 28 93 3S15 MICHAEL j- RUFFENACH 212935 237-62 CON 4 28 98 3850 TANYA M. SCHIERMAN 212936 165.45 4 28 98 3900 CHRISTOPHER E. SCHMID 212937 462.09 cum 4 28 98 3910 R •ONRAD SCHMID 212938 30.00 CON cum 4 28 98 4050 BERNARD j- SCHNURR 212939 i3s 73 CON 4 28 98 4175 ANDREW R. SMITH 212940 71.11 CON 4 28 98 4200 BRENDA L. SMITH 212941 83-66 CON 4 28 9S 4500 KRISTI STOVER 212942 184.70 COMPUTER CHECKS 21936-02 MANUAL CHECKS .00 NOTICES OF DEPOSIT ****TOTALS*=** 21936-02 Page 5 �� b C FE May 8, 1998 MAY - ' Bonn We the undersigned ask that the Shorewood City Council uphold he ordinances as written regarding the usage of non conforming docks/ structures on - uildabI sub- standard lots. We feel that the ordinances in place were created for our pro ion residents of Shorewood and lakeshore owners along Christmas Lake Road. Name Uk- S SCJv) ie.ES ���/'•� Srl � ,ccs0 Address phone Sgry C., T, S`F - 3 L. " y 7 v sa8 l . r� d S� d 9�7V -7X71 X76 ` ;� 4 4N-No 7 1-1 L; -i� 92 a k—' u lq 7Y-SG117 . '' May 8, 1998 We the undersigned ask that the Shorewood City Council uphold the ordinances as written regarding the usage of non conforming docks/ structures on non - buildable sub- standard lots. We feel that the ordinances in place were created for our protection as residents of Shorewood and lakeshore owners along Christmas Lake Road. G 'Alf, S�e!!t/1 �• /�rGI Address phone 5940 C.hri !;rMOC Lk� Iz A —1934- v 'mod LNG sTs �� �7 4 V3d � KINH A "MAN ' 1: May & low V40 on ui�dMaigetsd ask thy! � ShD oft up itN A as w sn 0 uaaps a no►� a� dock er n a oa �oarrdMd low vas fed tit �+M o� to pros wM+s a+e�tid for our �r+o� � ..Z rents of 8h xowood wd la W*W M CW Ms mono ChdM= Address . , Res TOTAL P.01 ' f f 1H190 A� w FANNON t h BRIG i AA MARTIN CELSIOR _ ATMENTS NOREN MAOOY WAS ANWERSO! SOUTAES } -0 BENSON AW LAURENT t MITM PIEAAO < ANSER CABALKA OANSEA < KUt EA PIEAAO s s �O = Q' ,i BERKEY I BERKEY STROMM PITTS FAYFIELO A FAYFIELO FAYFIELO CITY OF SHOREWOOD, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 1997 JAMES C. HURM, CITY ADMINISTRATOR REPORT PREPARED BY: DEPARTMENT OF FINANCE ALAN J. ROLEK, FINANCE DIRECTOR/TREASURER MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA' CITY OF SHOREWOOD, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 1997 Exhibit Page No. I. INTRODUCTORY SECTION Elected and Appointed Officials Organizational Chart Letter of Transmittal I - X Certificate of Achievement for Excellence in Financial Reporting II. FINANCIAL SECTION Independent Auditor's Report General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups 1 2-3 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types 2 4-5 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 3 6 Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types 4 7 Combined Statement of Cash Flows - All Proprietary Fund Types 5 8 Notes to Financial Statements 9-22 Combining and Individual Fund and Account Group Financial Statements and Schedules General Fund Comparative Balance Sheets A -1 23 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual A -2 24-29 Debt Service Funds Combining Balance Sheet B -1 30-31 Combining Statement of Revenue, Expenditures and Changes in Fund Balance B -2 32-33 Capital Projects Funds Combining Balance Sheet C -1 34-36 Combining Statement of Revenue, Expenditures and Changes in Fund Balance (Deficit) C -2 37-39 Enterprise Funds Combining Balance Sheet D -1 40-41 Combining Statement of Revenue, Expenses and Changes in Retained Earnings D -2 42-43 Combining Statement of Cash Flows D -3 44-45 Water Fund Comparative Balance Sheets D-4 46 Comparative Statements of Revenue, Expenses and Changes in Retained Earnings (Deficit) D -5 47 Comparative Statements of Cash Flows D-6 48 Sewer Fund Comparative Balance Sheets D -7 49 Comparative Statements of Revenue, Expenses and Changes in Retained Earnings D -8 50 Comparative Statements of Cash Flows D -9 51 CITY OF SHOREWOOD, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 1997 III. STATISTICAL SECTION General Fund Expenditures and Other Uses by Function Exhibit Page No. General Fund Revenue and Other Sources by Source Recycling Fund 77 Property Tax Levies and Collections Comparative Balance Sheet D -10 52 Comparative Statements of Revenue, Expenses and Changes in Retained Earnings D -11 53 Comparative Statements of Cash Flows D -12 54 Stormwater Management Utility Fund 83 Special Assessment Levies and Collections Comparative Balance Sheets D -13 55 Comparative Statements of Revenue, Expenses and Changes in Retained Earnings D -14 56 Comparative Statements of Cash Flows D -15 57 Liquor Fund General Expenditures Comparative Balance Sheets D -16 58 Comparative Statements of Revenue, Expenses and Changes in Retained Earnings D -17 59 Comparative Statements of Cash Flows D -18 60 Combining. Balance Sheet D -19 61-62 Combining Schedules of Revenue, Expenses and Changes in Retained Earnings 92 (Deficit) D -20 63-64 Combining Schedules of Cash Flows D -21 65-66 Agency Fund Statement of Changes in Assets and Liabilities E -1 67 General Fixed Asset Account Group Comparative Schedule of General Fixed Assets - by source F -1 68 Schedule of General Fixed Assets - by function and activity F -2 69 Schedule of Changes in General Fixed Assets - by function F -3 70 General Long -term Debt Account Group Comparative Statement of General Long -term Debt G -1 71 Schedule of Bonds Payable G -2 72-73 Schedule of Debt Service Requirements G -3 74-75 III. STATISTICAL SECTION General Fund Expenditures and Other Uses by Function 1 76 General Fund Revenue and Other Sources by Source 2 77 Property Tax Levies and Collections 3 78 Assessed Valuation, Tax Levies and Mill Rates 4 79-80 Property Tax Mill Rates/Tax Capacity Rates - Direct and Overlapping Governments 5 81-82 Principal Taxpayers 6 83 Special Assessment Levies and Collections 7 84 Computation of Legal Debt Margin 8 85 Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita 9 86 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 10 87 Computation of Direct and Overlapping Debt 11 88 Revenue Bond Coverage 12 89 Property Value, Construction and Bank Deposits 13 90-91 Miscellaneous Statistics 14 92 CITY OF SHOREWOOD, MINNESOTA SECTION I INTRODUCTORY SECTION CITY OF SHOREWOOD, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 1997 Appointed Officials James C. Hurm Alan J. Rolek City Administrator Finance Director/Treasurer Term Elected Officials Expire Tom Dahlberg Mayor 1998 Gerald O'Neill Council Member 1998 Jennifer McCarty Council Member 1998 Kristi Stover Council Member 2000 John Garfunkel Council Member 2000 Appointed Officials James C. Hurm Alan J. Rolek City Administrator Finance Director/Treasurer ORGANIZATIONAL CHART - CITY OF SHOREWOOD CITIZENS .- CITY COUNCIL CITY ATTORNEY CITY ADMINISTRATOR BOARDS & COMMISSIONS - PLANNING COMMISSION - PARK COMMISSION LIQUOR ENGINEERING FINANCE ADMINISTRATION PLANNING & ZONING PUBLIC WORKS PUBLIC SAFETY (CONTRACT) - Off -Sale - Engineering Svcs. - Personnel rn - General Govement - Planning - Building & Grounds - Police - 4 -City Joint Retail - Project Mgmt. - Accounting - Licensing - Zoning - Recycling (Contract) Services - Payroll - Elections Administration - Tree Maintenance - Patrol - Investments - Records - Property - Park Maintenance - Disaster - Utility Billing - Legal Publications Records - Street Mainenance Preparedness - Accts. Payable - Public Information - Inspection - Equipment Maintenance - Investigation - Accts. Recble. - Recreation Programs - Stormwater System - Public Service - Special - Park Planning - Street Lighting - Fire - Excelsior/ Assessments (Contract) - Sanitation/Weeds Mound - Budgeting - Assessor (Contract) - Janitor Services - Fire prevention/ - MIS - Cable TV - (Contract) firefighting - Purchasing Franchise - Utility Maintenance - Animal Control - (Contract) Chanhassen * Mayor is City's representative on joint governing board. December, 1997 CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD • SHOREWOOD, MINNESOTA 55331 -8927 • (612) 474 -3236 FAX (612) 474 -0128 • www.state.net /shorewood • cityhall@shorewood.state.net �7 May 8, 1998 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 December 31, 1997, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designated to present fairly the financial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. The Comprehensive Annual 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 officials. The Financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, along with the auditor's report on the financial statements. The Statistical section includes selected financial and demographic information, generally presented on a multi -year basis. The organization, form and contents of this report were prepared in accordance with the standards prescribed by the Governmental Accounting Standards Board, the Government Finance Officers Association of the United States and Canada, the American Institute of Certified Public Accountants, and the Minnesota State Auditor's Office. This report includes all funds and account groups of the City. The various fund types included are governmental, proprietary and fiduciary. Within the account groups are general fixed assets and general long -term debt. The City provides its residents and businesses with a full range of municipal services consisting of police, fire, public works, parks and general administrative services. The City also operates five enterprises: a water i 4 f' PRINTED ON RECYCLED PAPER utility, sewer utility, recycling utility, stormwater management utility and an off -sale liquor operation, consisting of three store sites. The criteria used in determining the component units to be included with the City as part of its reporting entity is consistent with those required by the Governmental Accounting Standards Board Statement No. 14, "The Financial Reporting Entity ". Based on these criteria, the City has no component units. All funds and account groups of the City are included in this report, and no component units are reported herein. ECONOMIC CONDITION AND OUTLOOK The City of Shorewood is a suburb of the City of Minneapolis and is located 25 miles southwest of the central business district on the southern shore of Lake Minnetonka. The City is predominantly a residential community with limited commercial businesses and two commercial shopping malls. The City is 6 square miles in area and has an estimated population of 6,889. While the City has experienced an accelerated rate of growth in residential development during the 1980's, the growth rate has slowed during the 1990's. The City will continue to experience growth 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 Governance The City Council in its leadership role is effectively establishing a focus for city government in Shorewood. The Council has committed to a strong set of values by which decisions are to be made. It has adopted a Statement of Purpose and has established overall goals and expectations for the City. It has identified issues facing the City and prioritized them so that the staff can efficiently and effectively allocate time and resources. The 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, review of the City's Comprehensive Plan Executive Summary, review of the statements of Purpose and Values, and identification and prioritization of issues for the next twelve and twenty -four months. fl u 11 ii 11 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. 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 budget format is being utilized 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. Emphasis on System Improvements The City Council acknowledged early in 1997 that a strong emphasis on communicating with residents is a top priority. In March, 1997, they adopted a communications plan for the City which includes the following: • Redesign public notices which meet legal requirements yet are easier to read and understand. • Redesign the City newsletter and distribute monthly rather than quarterly, as had been the practice previously. • Prepare Press releases on current issues, projects and special events. • Emphasize Council open forums and informal information meetings. • Provide opportunities for unrestricted citizen input at City Council meetings. • Improve the City's home page to make it more aesthetically pleasing and packed with useful information. • Utilize the cable access channel bulletin board to inform the public of city activities. • Promote the public usage of the "Shoreline" phone message line. • Produce numerous educational brochures to be mailed with the monthly newsletter. • Provide public feedback forms for those who have had contact with the City to encourage the public to share their experience with city services and personnel. • Utilize "communication strategy sheets to encourage all involved with the City to think about and plan for the best way to communicate with residents on city issues. • Provide a voice mail information system accessible by residents 24 hours a day to receive timely information on city services and events. Emphasis on Public Improvements The City is continuing to plan for and make public improvements in a number of areas. A process is underway to update the City's iii Comprehensive Plan. The revised plan will be a guide in addressing future zoning and development issues. The Stormwater Management Utility is a funding mechanism for small drainage improvement projects and for the City's share of major drainage projects. A number of small projects are undertaken each year. The fund had retained earnings of $251,401 at the end of 1997, which is designated for future stormwater management planning and drainage projects. The City continued its park improvement program in 1997. A picnic shelter, grills and drinking fountains were provided for the family area of Freeman Park. In addition, the Park Commission initiated a process to review the public's interest trails within the City. The Southshore Senior Community Center was opened in August of 1997. The City of Shorewood had taken a leadership role in bringing five area cities together in this project. The Center, which is also an area hub for Metropolitan Dial -a -Ride services, is located at the Shorewood City Hall /Badger Park complex. Emphasis on Efficiently, Effectively Meeting Service Needs Shorewood is committed to working cooperatively with area governmental jurisdictions to carefully consider optional methods to effectively deliver public services as efficiently as possible. The City has various contractual arrangements with other governmental jurisdictions and with private enterprise for providing many of these services. As an active participant in the Lake Minnetonka Area Cooperating Cities group, the City is involved in cooperative employee training, subregional housing planning, animal control and other areas of mutual concern. The Lake Minnetonka area cities continue to work jointly to address these mutual problems. 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 objectives 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 iv 0 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 legal level of budgetary control is established at the department 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, 1997 and the amount of increases or decreases in relation to the prior ' year's revenues. INCREASE REVENUES AND OTHER % OF (DECREASE) ' FINANCING SOURCES AMOUNT TOTAL FROM 1996 General Property Taxes $2,017,021 64.20% $262,855 Licenses and Permits 236,672 7.53% 31,213 Intergovernmental 450,185 14.33% 22,717 Charges for Services 63,209 2.01% 17,964 Fines and Forfeitures 76,340 2.43% (4,486) Special Assessments 138,127 4.40% (7,679) Interest on Investments 119,482 3.80% 1,843 Miscellaneous 40,802 1.30% 7,409 Operating Transfers In 0 0.00% (11,450) TOTAL $3,141,838 100.00% $320,386 Overall revenues increased by $320,386 from 1996 to 1997. The ' largest increase in revenue in 1997 from 1996 was in general property taxes. There are two reasons for this. First, the property tax levy for general purposes increased by $133,856, or ' 6.37 %, from 1996. This was a planned, budgeted increase for the year, and tax collections were on target with budget. Second, tax increments collections from Tax Increment Financing District No. 1 increased significantly from 1996. This was due to newly ' constructed commercial buildings in the district. The new buildings added new value to the district, which resulted in a corresponding increase in the amount of tax increments generated. v The increments will be used to retire the revenue bond -debt incurred for improvements within the tax increment district. Licenses and permits increased in 1997 due chiefly to an increase in building permits issued. Factors contributing to the increase include the approval of two new housing developments, sustained low interest rates and mild weather through the year end. Intergovernmental revenue grew in 1997 due to an increase in state issued HACA aid and a special one -time snow removal aid approved by the legislature for the winter of 1996 -97. Increased charge outs for engineering services contributed to the increase in the Charges for Services category. Small revenue increases were experienced in interest revenue due to increased cash flow, and in miscellaneous revenues. Revenues decreased in the special assessment, fines and forfeitures and operating transfer areas. There have been no new special assessments projects in the last several years, thus, the amount of special assessments collected is decreasing each year. Despite the addition of a full -time traffic control officer, fines and forfeiture revenue fell for the year. It may be interpreted that the addition of this position has contributed to a decrease in traffic violations over the last year. The budgeted transfer from the Liquor Fund was not made because the operation generated a net loss on the year. The following table presents a summary of General Fund and Debt Service Fund expenditures for the fiscal year ended December 31, 1997 and the amount of increases or decreases in relation to the prior year's expenditures. EXPENDITURES AND OTHER USES CURRENT: General Government Public Safety Public Works Parks and Recreation CAPITAL OUTLAY: DEBT SERVICE: Principal Interest OPERATING TRANSFERS: TOTAL 337,603 10.85% (429,397) 197,047 6.33% (68,372) 444,395 14.28% (140,741) $3,111,323 100.00% ($561,197) Overall expenditures were significantly lower in 1997 from 1996. This is primarily due to a decrease in debt service. The City called all outstanding bonds of its Shorewood Oaks Improvement vi n 11 11 11 11 11 11 11 u 11 INCREASE % OF (DECREASE) AMOUNT TOTAL FROM 1996 $807,892 25.97% $40,500 743,617 23.90% 53,713 451,756 14.52% (20,851) 114,904 3.69% 5,655 14,109 0.46% (1,704) 337,603 10.85% (429,397) 197,047 6.33% (68,372) 444,395 14.28% (140,741) $3,111,323 100.00% ($561,197) Overall expenditures were significantly lower in 1997 from 1996. This is primarily due to a decrease in debt service. The City called all outstanding bonds of its Shorewood Oaks Improvement vi n 11 11 11 11 11 11 11 u 11 n Bond issue in February, 1996. This caused a one year increase in debt service expenditures in 1996. Public Works expenditures were lower in 1997 due to reduced snow removal costs and to applicable costs being charged to the proper utilities funds rather than to public works general maintenance as had been the practice in the past. Capital outlay was also slightly lower in 1997. General Government expenditures increased in 1997 from 1996 due largely to wage adjustments and additional legal services charges. Public Safety expenditures also increased significantly in 1997. The South Lake Minnetonka' Public Safety Department received a grant through the federal COPSFAST program in 1995. The amount of the grant is reduced by 25% each year of the program. The reduction in the amount of the grant in 1997 resulted in an increase in the city's share of the cost for the position created through the grant. The cost of the fire protection contracts also increased significantly in 1997. The fire contracts increased by 10.9% over 1996. Park and recreation expenditures were also slightly higher in 1997, reflecting increased maintenance and park planning costs. The City Council has continued its plan to accumulate resources ' for future capital equipment and improvement projects. These amounts were transferred to various capital projects funds and will be applied to future equipment acquisitions and capital improvements. Operating transfers decreased significantly from ' 1996. Budgeted transfers for capital improvement purposes increased in 1997 from $424,186 to $444,395; however, the additional unbudgeted transfers made in 1996 were one -time ' transfers and, therefore, were not repeated in 1997, resulting in the net decrease. ' GENERAL FUND BALANCE The fund balance of the General Fund increased by $55,958 in 1997, a difference of 3.67 %. The fund balance as of December 31, 1997 is $1,578,910. Economic conditions during the year caused larger than expected revenues, and employee awareness of budgetary constraints resulted in lower expenditures, which brought about an As the City Council's intention is to manage the fund balance at this level, a portion of the fund balance has been budgeted in 1997 to lower the property tax levy. This will reduce the fund balance to $1,507,012, or 54.6% of the 1998 budget, which still ' exceeds acceptable levels. vii operating surplus. 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 an adequate fund balance as a reserve to meet expenditures in the General fund until property tax proceeds are received in July. The fund balance now the stands at 57.2% of the current year budget. The policy of City is to maintain a fund balance at 50% of the current budget. As the City Council's intention is to manage the fund balance at this level, a portion of the fund balance has been budgeted in 1997 to lower the property tax levy. This will reduce the fund balance to $1,507,012, or 54.6% of the 1998 budget, which still ' exceeds acceptable levels. vii ENTERPRISE OPERATION 11 The City's enterprise fund activities for 1997 are summarized as I follows: OPERATING OPERATING OPERATING REVENUES EXPENSES INCOME (LOSS) Water $252,866 $272,071 ($19,205) Sewer 758,124 790,399 (32,275) Recycling 71,890 72,785 (895) Stormwater 44,911 21,591 23,320 Liquor ' Tonka Bay 97,416 89,636 7,780 Waterford Center 125,130 178,865 (53,735) Shorewood Plaza 161,328 135,673 25,655 , 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. The Liquor Fund has experienced a net loss in each of the last , three years. The Waterford Center location, which was opened in 1995, has experienced significant losses each year and is the sole reason for the net losses in the Liquor Fund. One major reason for ' the losses is the excessive floor space and rents which the operation must support. The Liquor Committee will explore avenues to eliminate future losses through reduction of floor space or through the closure of the location. If this is not accomplished ' and losses continue, the City may have to consider discontinuing its liquor operations. ' DEBT ADMINISTRATION As of December 31, 1997, the City's debt outstanding totaled $3,955,000. Of this total, $680,000 were general obligation special assessment bonds issued to finance the construction of sanitary sewer, street, water and storm sewer improvements. The City issued $2,780,000 in general obligation water revenue bonds in 1995 and 1996 to finance water system extensions and improvements. Total outstanding general obligation water revenue bonds at year end is $2,655,000. The bonds will be repaid from special assessments on affected properties and from Water Fund revenues. In 1990, Tax increment revenue bonds of $920,000 were issued for construction of public improvements in the Waterford commercial viii u I 11 development. These bonds were sold directly to the developer. As the developer has direct control over the pace of development, retirement of the debt was to be made on a "pay -as- you -go" basis from tax increments generated by the development. 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 first received tax increments on this district in 1994. At year end, $620,000 of this issue remained outstanding. The District will expire in April, 2000. The City's bond rating as rated by Moody's Investor Service is "Al" on general obligation bond issues. Reasons cited by Moody's for this rating include the development and implementation of a five -year capital improvement plan, low outstanding debt, sound financial management, and anticipated maintenance of low debt ratios by the City. 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 positive 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 1997, the City of Shorewood earned $347,117 in interest revenue. I 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. 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. I ix 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. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Shorewood for its comprehensive annual financial report for the fiscal year ended December 31, 1996. In order to be awarded the Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. 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. R pectfully Submitted, James C. Hurm City Administrator Alan J./Rork Finan4 Director /Treasurer x Certificate of Achievement for Excellence in Financial Reporting Presented to City of Shorewood, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1996 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. � Q� OF F9� 2 UNITED STATES w ANU i CANADA President CORPORATI) S SEAL CNICA6 Executive Director CITY OF SHOREWOOD, MINNESOTA ' SECTION II ' FINANCIAL SECTION 1 1 1 M ABDO ABDO EICK & MEYE W LLP Certified Public Accountants & Consultants 1 Ohms lane Suite 200 Minneapolis, MN 55439 INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Council City of Shorewood, Minnesota We have audited the accompanying general purpose financial statements of the City of Shorewood, Minnesota, as of and for the year ended December 31, 1997 as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Shorewood, Minnesota's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 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, 1997 and the results of its operations and cash flows of the Proprietary Fund Type for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 12, 1998 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements listed in the table of contents are presented for the purpose of additional analysis and are not a required part of the general purpose financial statements of the City of Shorewood, Minnesota. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. C� ! March 12, 1998 ABDO, ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota Certified Public Accountants 612.835.9090 • Fax 612.835.3261 CITY OF SHOREWOOD, MINNESOTA GENERAL PURPOSE FINANCIAL STATEMENTS The general purpose financial statements and notes to the financial statements 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 financial planning. The following general purpose financial 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 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 j n I 1 0 u 7 THIS PAGE IS LEFT BLANK INTENTIONALLY n CITY OF SHOREWOOD , MINNESOTA COMBINED BALANCE SHEET ALL FUND TYPES ACCOUNT GROUPS DECEMBER 31, 1997 (With Comparative Totals for December 31, 1996) ASSETS AND OTHER DEBITS ASSETS Cash and temporary investments Investments for deferred compensation plans, at market Accrued interest receivable Delinquent taxes receivable Accounts receivable Special assessments receivable Note receivable Due from other funds Inventories, at cost Prepaid items Fixed assets, net Bond discount, net OTHER DEBITS Amount available in debt service funds Amounts to be provided for debt retirement TOTAL ASSETS AND OTHER DEBITS LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES Accounts and contracts payable Salaries and compensated absences payable Refundable deposits payable Deferred revenue Due to other funds Lease purchase payable General obligation bonds payable Tax increment bonds payable General Obligation revenue bonds payable Deferred compensation benefits payable TOTAL LIABILITIES EQUITY AND OTHER CREDITS Investment in general fixed assets Contributed capital Retained earnings Unreserved Fund balance (deficit) Reserved Unreserved Designated Undesignated TOTAL EQUITY AND OTHER CREDITS TOTAL LIABILITIES, EQUITY AND OTHER CREDITS See Notes to Financial Statements. -2- n 11 Governmental Fund Types Debt Capital General Service Projects $1,639,343 27,711 44,319 12,547 3,436 $ 469,150 5,638 3,150 284,950 $1,916,117 26,389 6,588 D u $1,727,356 $ 762,888 $1,949,094 ' $ 56,216 $ - $ 179,380 24,519 - - 32,811 - - ' 34,900 284,696 6,588 148,446 284,696 185,968 - 478,192 - ' 1,578,910 - 1 - - (11,545) 478,192 1,763,126 ' 1,578,910 $1,727,356 $ 762,888 $1,949,094 ' Exhibit 1 Proprietary Fiduciary Totals Fund Types Fund Type Account Groups (Memorandum Only) General General Long -term Enterprise Agency Fixed Assets Debt 1997 1996 $ 2,676,102 $ - $ - $ - $ 6,700,712 $ 6,483,588 - 294,843 - - 294,843 230,140 37,247 - - - 96,985 103,370 113 - - - 47,582 48,851 249,810 - - - 262,357 275,505 1,011,387 - - - 1,306,361 1,350,878 139,500 - - - 139,500 232,500 - 13,985 322,939 - - - 322,939 281,738 17,778 - - - 17,778 17,090 8,712,987 - 4,420,641 - 13,133,628 13,019,386 20,085 - - - 20,085 21,489 _ _ _ 478,192 478,192 503,635 _ _ - 1,151,101 1,151,101 1,459,209 $13,187,948 $ 294,843 $ 4,420,641 $ 1,629,293 $ 23,972,063 $ 24,041,364 $ 170,253 $ - $ - $ - $ 405,849 $ 363,729 8,844 - - 33,396 66,759 59,175 _ _ _ _ 32,811 56,188 326,184 437,282 _ - 13,985 295,897 295,897 311,000 680,000 680,000 822,500 _ _ - 620,000 620,000 800,000 2,655,000 - - - 2,655,000 2,780,000 - 294,843 - - 294,843 230,140 2,834,097 294,843 - 1,629,293 5,377,343 5,873,999 - - 4,420,641 - 4,420,641 4,284,453 9,170,946 - - - 9,170,946 8,817,958 1,182,905 - - - 1,182,905 1,092,822 _ _ _ _ 478,192 503,635 _ _ _ _ 3,353,581 3,494,482 _ _ _ _ (11,545) (25,985) 10,353,851 - 4,420,641 - 18,594,720 18,167,365 $13,187,948 $ 294,843 $ 4,420,641 $ 1,629,293 $ 23,972,063 $ 24,041,364 -3- CITY OF SHOREWOOD, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES YEAR ENDED DECEMBER 31, 1997 (With Comparative Totals for the year ended December 31, 1996) REVENUE General property taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous TOTAL REVENUE EXPENDITURES Current General government Public safety Public works Culture and recreation Capital outlay Debt service Principal Interest and service charges TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Lease purchase proceeds Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUND BALANCE, JANUARY 1 FUND EQUITY TRANSFER IN FUND EQUITY TRANSFER OUT FUND BALANCE, DECEMBER 31 See Notes to Financial Statements. -4- 807,892 - - 743,617 - - 451,756 - - 114,904 - - 14,109 - 916,008 15,103 Debt Capital General Service Projects $ 1,703,509 $ 313,512 $ - 236,672 - - 450,185 - 132,394 63,209 - (88) 76,340 - - - 138,127 2,287 99,370 20,112 91,933 40,802 - 72,580 2,670,087 471,751 299,194 807,892 - - 743,617 - - 451,756 - - 114,904 - - 14,109 - 916,008 15,103 322,500 - 22,441 174,606 - 2,169,822 497,106 916,008 500,265 (25,355) (616,814) 829,895 (444,395) - (395,500) (444,395) - 434,395 55,870 (25,355) (182,419) 1,522,952 503,635 1,945,545 88 - 3,596 - (88) (3,596) ' $ 1,578,910 $ 478,192 $ 1,763,126 n Exhibit 2 Totals (Memorandum Only) 1997 1996 $ 2,017,021 $ 1,754,166 236,672 205,459 582,579 522,088 63,209 45,245 76,340 80,826 140,414 147,210 211,415 227,982 807,892 767,392 743,617 689,904 451,756 472,607 114,904 109,249 930,117 767,908 337,603 887,000 197,047 145,419 3,582,936 3,839,479 (141,904) (434,370) 829,895 579,720 - 311,000 (839,895) (825,135) (10,000) 65,585 (151,904) (368,785) 3,972,132 4,340,917 3,684 114,342 (3,684) (114,342) $ 3,820,228 $ 3,972,132 -5- CITY OF SHOREWOOD, MINNESOTA Exhibit 3 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31, 1997 Variance - Favorable REVENUE General property taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest on investments Miscellaneous revenue TOTAL REVENUE EXPENDITURES Current General government Public safety Public works Culture and recreation Capital outlay Debt service TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUND BALANCE, JANUARY 1 FUND EQUITY TRANSFERS IN FUND BALANCE, DECEMBER 31 See Notes to Financial Statements. Budget Actual (Unfavorable) $ 1,705,251 $ 1,703,509 $ (1,742) 174,250 236,672 62,422 447,290 450,185 2,895 65,000 63,209 (1,791) 80,000 76,340 (3,660) 75,000 99,370 24,370 21,500 40 ,802 19,302 2,568,291 2,670,087 101,796 813,029 807,892 5,137 748,366 743,617 4,749 448,744 451,756 (3,012) 13 0, 226 114,904 15,322 15,981 14,109 1,872 37,550 37,544 6 2,193,896 2,169,822 24,074 374,395 500,265 125,870 10,000 - (10,000) (444,395) (444,395) - (434,395) (444,395) (10,000) $ (60,000) 55,870 $ 115,870 1,522,952 $ 1,578,910 Q CITY OF SHOREWOOD, MINNESOTA Exhibit 4 ' COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31, 1997 ' Enterprise OPERATING REVENUE Sales $ 1,876,660 ' Less cost of sales (1,492,786) GROSS PROFIT 383,874 ' Charges for services 1,056,749 Permits and connection fees 71,042 GROSS PROFIT AND OPERATING REVENUE 1,511,665 OPERATING EXPENSES ' Personal services 206,030 Supplies 24,341 Repairs and maintenance 13,295 Depreciation 293,414 22,729 Professional services Contracted services 190,036 Communication 1,245 Insurance 20,851 Water purchases 12,780 ' Utilities 74,186 MCES disposal charges 525,231 Rent 140,519 Advertising 7,154 Other 29,209 ' TOTAL OPERATING EXPENSES 1,561,020 OPERATING LOSS (49,355) ' NONOPERATING REVENUE (EXPENSE) General property taxes 15 Special assessments 72,882 Interest on investments 135,702 Other income 41,576 ' Interest expense (120,737) TOTAL NONOPERATING REVENUE (EXPENSE) 129,438 ' NET INCOME BEFORE OPERATING TRANSFERS 80,083 OPERATING TRANSFERS FROM OTHER FUNDS 10,000 ' NET INCOME 90,083 RETAINED EARNINGS, JANUARY 1 1,092,822 RETAINED EARNINGS, DECEMBER 31 $ 1,182,905 ' See Notes to Financial Statements. -7- CITY OF SHOREWOOD, MINNESOTA Exhibit 5 COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31, 1997 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers to other funds Enterprise CASH FLOWS FROM OPERATING ACTIVITIES 282,967 Operating loss $ (49,355) Adjustments to reconcile operating loss to net cash (125,000) provided by operating activities: (120,737) Other income related to operations 41,576 Depreciation and amortization 294,818 (Increase) decrease in assets: 230,448 Accounts receivable (3,531) Special assessments (449) Inventory (41,201) Prepaid items (688) Increase (decrease) in liabilities: Accounts payable (37,676) Salaries and compensated absences payable 1,332 NET CASH PROVIDED BY OPERATING ACTIVITIES 204,826 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers to other funds 10,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES 282,967 Principal payments on note receivable 93,000 Bond principal paid (125,000) Interest paid on revenue bonds (120,737) Acquisition of fixed assets (144,616) Property taxes collected 372 Special assessments collected 230,448 NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (66,533) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 134,674 INCREASE IN CASH AND CASH EQUIVALENTS 282,967 CASH AND CASH EQUIVALENTS, JANUARY 1 2,393,135 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 2,676,102 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Property and equipment acquired from other funds $ 126,855 See Notes to Financial Statements. -8- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. B. Reporting Entity The City of Shorewood is a statutory city operating in accordance with the Plan A form of government. As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Shorewood (the primary government) and its component units. The City of Shorewood does not have any component units requiring either a blended or discrete presentation. Measurement Focus, Basis of Accounting and Basis of Presentation The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self- balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance- related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The City has the following fund types and account groups: Governmental funds are used to account for the City's general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available "). "Measurable" means the amount of the transaction can be determined, and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available if they are collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long -term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes, franchise taxes, licenses, interest and special assessments are susceptible to accrual. Other receipts and taxes become measurable and available when cash is received by the government and are recognized as revenue at that time. The preparation of general purpose financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Governmental funds include the following fund types: The general fund is the City's primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The debt service funds account for the servicing of general long -term debt not being financed by proprietary funds. The capital projects funds account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary funds. Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City applies all applicable FASB pronouncements previous to November 30, 1989 in accounting and reporting for its proprietary operations. Proprietary funds include the following fund type: -9- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the Council has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of others. Agency Funds are established to account for cash or other assets held by the city as trustee or agent for individuals, private organizations, other governments and/or other funds. The fund is custodial in nature (assets equal liabilities) and does not involve measurement of results of operations. Account Groups. The general fixed assets account group is used to account for fixed assets not accounted for in proprietary funds. The general long -term debt account group is used to account for general long -term debt and certain other liabilities that are not specific liabilities of proprietary funds. C. Assets, Liabilities and Equity , Deposits and Investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, repurchase agreements and shares of investment companies registered under the Federal Investment ' Company Act of 1940 and whose only investments are obligations guaranteed by the United States or its agencies. Investments are stated at lower of cost or amortized cost, or market value, except for investments in the ' deferred compensation agency fund which are reported at market value. Earnings on investments are allocated to the individual funds based upon the average of month-end cash and investment balances. Property Taxes The City Council annually adopts a tax levy and certifies it to the County for collection. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable ' property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected by the County Treasurer and tax settlements are made to the City during January, June, and November each year. ' Taxes payable on homestead property, as defined by State statutes, are partially reduced by a homestead and agricultural credit aid. The credit is 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. ' Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred revenue liability for delinquent taxes not received within 60 days after year end. Special Assessments , Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are ' recognized as revenue when they are received in cash or within 60 days after year end. All special assessments receivable are offset by a deferred revenue liability. Receivables and Payables , Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund loans) or "advances to /from other funds" (i.e., the non - current portion of interfund loans). All other outstanding balances between funds are reported as ",due to /from other funds." -10- ' 1 CITY OF SHOREWOOD, MINNESOTA ' NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED ' Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. ' Inventories and Prepaid Items/Deferred Charges The inventories are stated at average cost, which approximates market using the first -in, first -out (FIFO) method. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items or deferred charges. I Fixed Assets Fixed assets used in governmental fund types of the City are recorded in the general fixed assets account group at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their estimated fair value at the date of donation. Assets in the general fixed assets account group are not depreciated. Interest incurred during construction is not capitalized on general fixed assets. ' Public domain (infrastructure) general fixed assets (e.g., roads, bridges, sidewalks and other assets that are immovable and of value only to the City) are not capitalized. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend ' assets' lives are not included in the general fixed assets group or capitalized in the proprietary funds. Property, plant and equipment in the proprietary funds of the City are recorded at cost. Property, plant and equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the ' date of donation. Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in ' the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Property, plant and equipment are depreciated in the proprietary funds of the City using the straight line ' method over the following estimated useful lives: ' Assets Years Furniture and equipment 5-10 Collection and distribution system 40 Compensated Absences Vested accumulated vacation or sick leave that is expected to be liquidated with expendable available 1 financial resources is reported as an expenditures 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. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. ' Long -term Obligations The City reports long -term debt of governmental funds at face value in the general long -term debt account group. Certain other governmental fund obligations not expected to be financed with current available ' financial resources are also reported in the general long -term debt account group. Long -term debt and other obligations financed by proprietary funds are reported as liabilities in the appropriate funds. I -11- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as an other financing source net of the applicable premium or discount. Issuance costs, other than those withheld from the actual net proceeds received, are reported as debt service expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight line method. Issuance costs arc reported as deferred charges. Fund Equity Reservations of fund balance represent amounts that are not appropriable or are legally segregated for specific purpose. Reservations of retained earnings are limited to outside third -party restrictions. Designations of fund balance represent tentative management plans that are subject to change. The proprietary fund's contributed capital represents equity acquired through capital grants and capital contributions from developers, customers or other funds. Memorandum Only - Total Columns Total columns on the general purpose financial statements are captioned as "memorandum only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position, results of operations or cash flows in accordance with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. Comparative Data/Reclassifications Comparative total data for the prior year have been presented in the selected sections of the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year end. In August of each year, all departments of the City submit requests for appropriations to the City Administrator so that a budget may be prepared. Before September 15, the proposed budget is presented to the City's council for review. The council holds public hearings and a final budget is prepared and adopted in early December. The appropriated budget is prepared by fund, function and department. The City's department heads, with the approval of the City Administrator, may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the City Council. The legal level of budgetary control is the department level. Budgeted amounts are as originally adopted, or as amended by the City Council. B. Deficit Fund Equity The following funds had deficit fund balances as of December 31, 1997. The deficit in these funds will be eliminated by future revenue sources. Capital Projects Funds 1995 Freeman Park Improvements $ 829 Senior Community Center 10,716 Total 11,545 -12- C L r CITY OF SHOREWOOD, MINNESOTA ' NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS ' A. Deposits and Investments Cash balances of the City's funds are combined (pooled) and invested to the extent available in various ' investments authorized by Minnesota State Statutes. Each fund's portion of this pool (or pools) is displayed on the financial statements as cash and temporary investments." For purposes of identifying the risk of investing public funds, the balances are categorized as follows: '� II 7 J I� L1 iL u D eposits In accordance with Minnesota Statutes and as authorized by the City Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City or in a financial institution other than that furnishing the collateral. At year end, the City's carrying amount of deposits was $1,114,336 and the bank balance was $1,167,647. Of the bank balance, all was covered by federal depository insurance or by collateral held by the City's agent in the City's name. Investments Investments are categorized into these three categories of credit risk: 1. Insured or registered, or securities held by the City or its agent in the City's name. 2. Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City' name. 3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. At year end, the City's investment balances were as follows: Category Carrying Market 1 2 3 Amount Value U.S. Government Securities Commercial Paper Total Investments not subjected to categorization: 4M Money Market Fund Deferred compensation in $ 3,483,291 $ - $ - $ 3,483,291 $3,485,913 2,047,718 - - 2,047,718 2,047,718 $ 5.531.009 $ 5,531,009 5,533,631 53,467 53,467 vestments at market 294,843 294,843 Total investments $ 5.879.319 $5,881,941 Cash on Hand Petty cash in the possession of the City totals $1,900. -13- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 ' Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS Cash and Investments Summary ' A reconciliation of cash and investments as shown on the Combined Balance Sheet for the City follows: Cash on hand $ 1,900 ' Carrying amount of deposits 1,114,336 Carrying amount of investments 5,879,319 Total $ 6,995.555 Classified on the combined balance sheet as: $ 6,700,712 ' Cash and temporary investments Investments for deferred compensation plans, at market 294,843 Total $ 6.995.555 ' B. Notes Receivable On May 28, 1996, the City entered into a service agreement with the City of Victoria to provide water. The , total amount of the water availability fee was $232,500 and will be financed in five equal principal installments of $46,500 through July 1, 2000. Two payments were made in 1997 because the service was not completely in place at the end of 1996. Interest of 5.75% will be paid on the outstanding balance. The outstanding balance at December 31, 1997 was $139,500. ' C. Fixed Assets A summary of changes in general fixed assets for the year ended December 31, 1997 is as follows: ' Balance Beginning Balance ' of Year Additions Deletions End of Year Land $ 456,826 $ - $ - $ 456,826 Buildings and structures 1,322,073 25,803 - 1,347,876 Improvements other than buildings 1,314,258 23,130 - 1,337,388 Furniture and equipment 1,191,296 205,412 118,157 1,278,551 Total $4,284.453 $254,345 $118,157 $4,420,641 , The following is a summary of proprietary fund type fixed assets at December 31, 1997: , Enterprise Funds Stormwater Mgmt Water Sewer Recycling Utility Liquor Total ' Furniture and equipment $ 24,178 $ 37,827 $ - $ - $ 102,488 $ 164,493 Collection and ' distribution system 4,708,356 7,591,856 - - - 12,300,212 Construction work in progress 1,530,536 - - - - 1,530,536 Total 6,263,070 7,629,683 - - 102,488 13,995,241 ' Less accumulated depreciation 9( 26,350 4 3( 15,143 - 4( 0,761 (5,282,254 , Net Fixed Assets $5.336,720 $3.314.540 61,727 8,712.987 -14- , CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED D. Deferred Revenue Deferred revenue at December 31, 1997 is comprised of the following: Debt Capital General Service Proiect Total Delinquent taxes $ 31,464 $ - $ - $ 31,464 Special assessments Delinquent Deferred Total E. Long -term Debt 1,620 10,533 191 12,344 1,816 274,163 6,397 282,376 34 900 $284,696 $ 6.588 1326,184 General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both general government and proprietary activities. The bonds are reported in the proprietary funds if they are expected to be paid from proprietary activities. General obligation bonds are direct obligations and pledge the full faith and credit of the city. General obligation bonds currently outstanding are as follows: General Long -term Debt General Obligation Improvement Bonds The following bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. Some issues, however, are partly financed by ad valorem tax levies. All special assessment debt is backed by the full faith and credit of the City. Each year the combined assessment and tax levy equals 105% of the amount required for debt service. The excess of 5% is to cover any delinquencies in tax or assessment payments. Authorized Balance at and Issued Interest Rate Issue Date Maturity Date Year End G.O. Improvement Bonds Of 11991 $ 960 000 5.40 -5.85% 11 -01 -91 2 -01 -02 $ 475,000 G.O. Improvement Bonds of 1993 325 000 3.50 -4.45 12 -01 -93 2 -01 -04 205,000 Total General Obligation Improvement Bonds 1 680,000 General Obligation Tax Increment Revenue Bonds The following bonds were issued for redevelopment projects. The additional tax increments resulting from increased tax capacity of the redeveloped properties will be used to retire the related debt. They are not backed by the full faith and credit of the City. G.O. Tax Increment Bonds of 1987 $ 920 000 9.00% 5 -01 -91 2 -01 -00 620 000 -15- Note 3: CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED Other General Long -Term Debt Lease Purchase Payable During 1996, the City entered into a lease, with option to purchase, agreement as lessee for financing the South Shore Senior Center project. Title remains with the City so long as they are not in default of terms in the lease agreement. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. Authorized Balance at and Issued Interest Rate Issue Date Maturity Date Year End $ 311,000 6.22% 5 -30 -96 8 -01 -08 295,897 Sick leave /severance payable This liability represents vested benefits earned by employees through the end of the year, which will be paid at retirement in future periods. Total Sick leave /severance payable 33,396 Enterprise Fund Debt General Obligation Revenue Bonds The following bonds were issued to fund improvements in the Water Enterprise fund. They will be repaid through user charges and tax levies. G.O. Water Revenue Bonds of 1995 $ 1,920,000 4.00 -4.75% 11 -01 -95 2 -01 -11 $1,795,000 G.O. Water Revenue Bonds of 1996 860,000 4.00 -5.40% 11 -01 -96 2 -01 -12 860,000 Total General Obligation Revenue Bonds $2.655,000 Changes in General Long -term Liabilities. During the year ended December 31, 1997, the following changes occurred in liabilities reported in the general long -term debt account group. The annual service requirements to maturity for all bonds and leases outstanding at December 31, 1997 are as follows: -16- Balance Balance January 1, December 31, 1997 Additions Reductions 1997 G.O. Improvement Bonds $ 822,500 $ - $ 142,500 $ 680,000 Tax Increment Bonds 800,000 - 180,000 620,000 Lease purchase payable 311,000 - 15,103 295,897 Sick leave /severance payable 29,344 4,052 - 33,396 Total J1Jk2 844 S 4,052 $337,603 $ 1.629.293 The annual service requirements to maturity for all bonds and leases outstanding at December 31, 1997 are as follows: -16- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED Principal 680 000 6$ 20.000 295 897 L2.655.000 $4,250,897 Amounts Available for Long -term Debt. Available fund balance in the debt service funds for repayment of long -term debt totaled $478,192 at year end. Amounts to be Provided for Long -term Debt. This represents future revenue to be generated for debt payments and sick leave /severance benefits payable, generally including interest earnings, tax increments, scheduled tax levies and deferred (future) special assessment levies. F. Fund Equity Reservations and Designations The components of fund equity are described in Note 1. Certain reserves and designations have been made Enterprise General Long -term Debt Account Group Funds Amount Governmental Funds Tax Debt Service Funds 1993 Improvement and Refunding Debt service on bonds issued $ 194,782 Waterford III Tax Increment 1991 Improvement and Refunding G.O. Increment Lease G.O. $ 478.192 Year Ending Improvement Revenue Bonds Purchase Payable Revenue Bonds Total December 31, Bonds 128,240 Park Capital Improvements Park Improvements 163,402 91,483 1998 $ 167,250 $ 342,540 $ 37,544 $ 318,383 $ 865,717 1999 160,443 914,385 37,544 295,934 1,408,306 2000 148,588 - 37,544 298,020 484,152 2001 136,776 - 37,544 284,739 459,059 2002 120,139 - 37,544 276,414 434,097 Thereafter 41,910 - 225,263 2,148,936 2,416,109 Total 775,106 1,256,925 412,983 3,622,426 6,067,440 Less interest 9( 5,106 (636,925 11( 7,086 (967,426 (1,816,543 Principal 680 000 6$ 20.000 295 897 L2.655.000 $4,250,897 Amounts Available for Long -term Debt. Available fund balance in the debt service funds for repayment of long -term debt totaled $478,192 at year end. Amounts to be Provided for Long -term Debt. This represents future revenue to be generated for debt payments and sick leave /severance benefits payable, generally including interest earnings, tax increments, scheduled tax levies and deferred (future) special assessment levies. F. Fund Equity Reservations and Designations The components of fund equity are described in Note 1. Certain reserves and designations have been made in the following funds: Fund Balance - Reserved Purpose Amount Governmental Funds Debt Service Funds 1993 Improvement and Refunding Debt service on bonds issued $ 194,782 Waterford III Tax Increment 1991 Improvement and Refunding Debt service on bonds issued Debt service on bonds issued 6,379 277,031 Total Reserved $ 478.192 Fund Balance - Unreserved - Designated Governmental Funds General Working capital $ 1,578,910 Capital Projects Public Facilities/Office Equipment Capital Improvements 128,240 Park Capital Improvements Park Improvements 163,402 91,483 Equipment Replacement Equipment 1,001,696 Street Reconstruction MSA Construction Streets MSA Construction 230,537 Trail Capital Improvements Trail Improvements 127,136 5,838 Strawberry Lane Reconstruction Strawberry Lane 26,339 Shady Island Bridge Reconstruction Bridge Total Unreserved - Designated $ 3.353.581 -17 CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED G. Contributed Capital The changes in the government's contributed capital accounts for its proprietary funds were as follows: Sources Beginning balance, Contributed capital Contributing sources: Developer and customer Ending balance, Contributed capital Enterprise member receives the higher of the step -rate benefit accrual formula (Method 1) or a level accrual formula Water Sewer Total 1997 is 2.0 percent of average salary for each of the first 10 years of service and 2.5 percent for each $4,427,326 $4,390,632 $8,817,958 283,598 69,390 352,988 $4.710.924 $4.460.022 $9.170.946 Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description All full -time and certain part-time employees of the City of Shorewood are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) which is a cost - sharing, multiple- employer retirement plan. This plan is established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong t- either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and years of credit at termination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of the step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member who retires before July 1, 1997 is 2.0 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. The annuity accrual rate for Basic members who retire on or after July 1, 1997 is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. For a Coordinated Plan member who retires before July 1, 1997, the annuity accrual rate is 1.0 percent of average salary for each of the first 10 years and 1.5 percent for each remaining year. For Coordinated , members who retire on or after July 1, 1997, the annuity accrual rates increase by 0.2 percent (to 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year). Under Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic Plan members and 1.5 percent for Coordinated Plan members who retire before July 1, 1997. Annuity accrual rates increase 0.2 percent for , members who retire on or after July 1, 1997. For PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement. ' There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree -- no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, ' because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. , -18- ' CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF. That report may be obtained by writing to PERA, 514 St. Peter Street, #200, St. Paul, Minnesota 55102 or by calling (612) 296 -7460 or 1- 800 - 652 -9026. B. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.23% and 4.23 %, respectively, of their annual covered salary. The City is required to contribute the following percentages of annual covered payroll: 10.73% for Basic Plan PERF members, 4.48% for Coordinated Plan PERF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 1997, 1996, and 1995 were $33,296, $30,416 and $29,103, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Note 5: JOINT VENTURES A. South Lake Minnetonka Public Safety Department II The City of Shorewood participates in a joint powers agreement with the cities of 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 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 1997 by the City of Shorewood is 45.1 %. Any budget shortfall is made up first from department reserves, with any excess shortfall assessed to each participating community according to the formula. The current agreement continues through December 31, 1997. South Lake Minnetonka Public Safety Department has accounts payable, accrued payroll, compensated absences and deferred revenue in the General Fund of $145,104, and deferred compensation benefits payable in the Agency Fund of $262,433 at year end. There is no other current or long -term debt outstanding as of December 31, 1997. The following is a summary of the Department's balance sheet as of December 31, 1997 and the statement of revenue, expenditures and changes in fund balance for the General Fund for the year ended December 31, 1997. SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1997 -19- General Totals Fixed (Memorandum Only) General Agency Assets 1997 1996 Total assets LaM 012 $262,433 $350 939,412 S 54,893 Liabilities $ 145,104 $ 262,433 $ - $ 407,537 $ 369,707 Fund equity 180,908 - 350,967 531,875 485,186 Total liabilities and fund equity jjj6 012 L2kZ 433 11ag 967 $939,412 $854,893 -19- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 5: JOINT VENTURES - CONTINUED SOUTH LAKE MINNETONKA PUBLIC SAFETY DEPARTMENT SUMMARY STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - GENERAL FUND - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1997 (With comparative actual amounts for the year ended December 31, 1996) 1997 Total revenue Total expenditures Excess of revenue over (under) expenditures Fund balance, January 1 Fund balance, December 31 1996 Variance - Favorable Budget Actual (Unfavorable) Actual $ 1,183,226 $ 1,247,073 $ 63,847 $ 1,189,252 1,203,226 1,218,390 1( 5,164 1,177,094 $ (20.000 28,683 $ 48.683 152,225 $ 180.908 B. South Lake Minnetonka Senior Community Center 12,158 140,067 $ 152.225 The City participates in a joint venture with the cities of Excelsior, Deephaven, Greenwood and Tonka Bay which establishes the Southshore Senior Community Center to provide senior citizens educational and recreational activities. Upon completion of the Senior Center, the Cities will lease the Senior Center to the Friends of the South Lake Minnetonka Senior Community Center. The term of the lease shall be 25 years at a rental rate of $1 per year. The Friends of the South Lake Minnetonka Senior Community Center are required to pay all operating costs of the Senior Center. The member cities are responsible for a proportionate share of the building construction. Shorewood financed their share with a lease purchase obligation. The amount of the lease purchase is $295,897 and is reflected in the General Long -term Debt Account Group. In the event operating costs are not covered by revenue, each member City is responsible for their proportional share of the expense. The building costs incurred by the City are reported in the Senior Center Capital Project fund and will be recorded in the General Fixed Asset Account Group when the Senior Center is completed. The ownership interest of the City is proportionate to each City's investment in the Senior Center. Note 6: OTHER INFORMATION A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the City carries insurance The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust ( LMCIT) which is a risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $1,000,000. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of any incurred but not reported claims. -20- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 6: OTHER INFORMATION - CONTINUED B. Deferred Compensation Plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Service Code Section 457. The plan, available to all full -time City employees at their option, permits participants to defer a portion of their salary until future years. The deferred compensation assets are not available to employees until termination, retirement, death or unforeseen emergency. All amounts of compensation deferred under this 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 participant or beneficiary), solely the property 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 City in an amount equal to the fair market value of the deferred account for each participant. It is the option of the City's legal counsel that 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. Assets of the plan are held by trustees and are reflected in these statements in an Agency Fund at market value. C. Segment Information for Enterprise Funds D. Legal Debt Margin In accordance with Minnesota Statutes, the City may not incur or be subject to net debt in excess of two percent of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and, therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax increments. -21- Stormwater Management Water Sewer Recycling Utility Liquor Total Operating revenue $ 252,866 $ 758,124 $ 71,890 $ 44,911 - $ 383,874 10,551 $1,511,665 293,414 Depreciation expense Operating income (loss) 91,470 (19,205) 191,393 (32,275) - (895) 23,320 (20,300) (49,355) Operating transfers from - - 10,000 _ 10,000 other funds - - 15 Property tax revenue Net income (loss) 15 25,630 - 31,496 - (52) - 46,053 (13,044) 90,083 Fixed asset additions Net working capital 199,853 1,929,179 69,390 1,532,589 - 23,157 - 251,401 2,228 261,453 271,471 3,997,779 Contributed capital additions Total assets 283,598 7,600,040 69,390 4,856,984 25,081 - 251,437 - 454,406 352,988 13,187,948 Total equity 4,908,984 4 23,157 251,401 323,180 10,353,851 D. Legal Debt Margin In accordance with Minnesota Statutes, the City may not incur or be subject to net debt in excess of two percent of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and, therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax increments. -21- CITY OF SHOREWOOD, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 Note 7: OPERATING LEASES The City leases space for liquor store operations. These leases are considered, for accounting purposes, to be operating leases. Lease expense for the year ended December 31, 1997 and 1996 amounted to $140,519 and $113,514, respectively. Future minimum lease payments for Waterford Center and Tonka Bay leases are as follows: Year Ending Waterford December 31, Center Tonka Bav 1998 $ 49,500 $ 12,000 1999 49,500 - 2000 49,500 - 2001 49,500 - Total $198,000 12,000 The new lease for Waterford Center began January 1, 1995 and will run through December 31, 2001. Shorewood Plaza is currently under a month to month lease. The monthly rent payments are $2,328. Note 8: TAX INCREMENT REVENUE BONDS 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 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 generated 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. The bonds payable are reported as a liability in the General Long -term Debt 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. • The bonds will be repaid only to the extent that tax increments are generated from the Tax Increment Financing District. Note 9: OPERATING TRANSFERS A schedule of operating transfers follows: General Fund Capital Projects Funds Public Facilities/Office Equipment Park Capital Improvements Equipment Replacement Street Reconstruction Trail Capital Improvement Strawberry Lane Reconstruction Shady Island Bridge Reconstruction Enterprise Funds Stormwater Management Utility -22- 10,000 _ 11 n , Transfer Transfer In Out $ - $ 444,395 ' 15,000 15,000 20,000 - 109,395 , 290,000 380,500 25,500 - 10,000 360,000 - 10,000 _ 11 n 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 in 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. t CITY OF SHOREWOOD, MINNESOTA GENERAL FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1997 AND 1996 ASSETS Cash and temporary investments Accrued interest receivable Delinquent taxes receivable Accounts receivable Special assessments receivable Delinquent Deferred TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Accounts and contracts payable Salaries payable Refundable deposits payable Deferred revenue TOTAL LIABILITIES FUND BALANCE Unreserved Designated for working capital TOTAL LIABILITIES AND FUND BALANCE -23- Exhibit A -1 1997 1996 $ 1,639,343 $ 1,571,287 27,711 27,898 44,319 44,726 12,547 20,339 1,620 1,620 1,816 55 $ 1,727,356 $ 1,665,925 $ 56,216 $ 58,596 24,519 22,319 32,811 31,038 34,900 31,020 148,446 142,973 1,578,910 1,522,952 $ 1,727,356 $ 1,665,925 CITY OF SHOREWOOD, MINNESOTA Exhibit A -2 GENERAL FUND , STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1997 (With Comparative Amounts for the Year Ended December 31, 1996) REVENUE General property taxes General property taxes Fiscal disparities Total Licenses and permits Business Nonbusiness Total Intergovernmental - State Property tax credits Other Total Charges for services General government Parks and recreation Total Fines and forfeitures Miscellaneous revenue Interest on investments Other Total TOTAL REVENUE 1997 1996 Variance - ' Favorable Budget Actual (Unfavorable) Actual ' $ 1,644,067 $ 1,642,325 $ (1,742) $ 1,509,592 61,184 61,184 - 60,061 ' 1,705,251 1,703,509 (1,742) 1,569,653 ' 9,650 9,950 300 10,920 164,600 226,722 62,122 194,539 , 174,250 236,672 62,422 205,459 420,880 420,880 - 413,718 26,410 29,305 2,895 13,750 , 447,290 450,185 2,895 427,468 ' 56,000 50,639 (5,361) 10,451 9,000 12,570 3,570 34,794 ' 65,000 63,209 (1,791) 45,245 80,000 76,340 (3,660) 80,826 75,000 99,370 24,370 95,711 21,500 40,802 19,302 33,393 ' 96,500 140,172 43,672 129,104 2,568,291 2,670,087 101,796 2,457,755 , -24- Finance Personal services CITY OF SHOREWOOD, MINNESOTA 93,914 Exhibit A -2 87,919 GENERAL FUND 2,900 2,518 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Other services and charges 8,250 BUDGET AND ACTUAL 1,279 4,096 Total YEAR ENDED DECEMBER 31, 1997 103,403 (1,621) (With Comparative Amounts for the Year Ended December 31, 1996) Professional services 1997 1996 Personal services 76,999 Variance - 14,763 57,509 Supplies Favorable 1,335 (35) Budget Actual (Unfavorable) Actual EXPENDITURES (61,815) 153,861 Total Current 253,336 (47,087) 212,791 General Government Mayor and Council Personal services 90,616 90,515 Personal services - $ 13,564 $ 13,564 $ - $ 13,564 Supplies 1,200 1,207 (7) 1,503 Other services and charges 56,780 38,978 17,802 48,309 Contingency 26,035 - 26,035 - Total 97,579 53,749 43,830 63,376 Administrative Personal services 91,520 95,306 (3,786) 93,895 Supplies 575 530 45 517 Other services and charges 9,100 7,158 1,942 6,572 Total 101,195 102,994 (1,799) 100,984 Finance Personal services 90,632 93,914 (3,282) 87,919 Supplies 2,900 2,518 382 4,113 Other services and charges 8,250 6,971 1,279 4,096 Total 101,782 103,403 (1,621) 96,128 Professional services Personal services 76,999 62,236 14,763 57,509 Supplies 1,300 1,335 (35) 1,421 Other services and charges 127,950 189,765 (61,815) 153,861 Total 206,249 253,336 (47,087) 212,791 Planning and zoning Personal services 90,616 90,515 101 88,779 Supplies 750 859 (109) 1,095 Other services and charges 7,789 6,964 825 7,672 Total 99,155 98,338 817 97,546 -25- CITY OF SHOREWOOD, MINNESOTA Exhibit A -2 GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1997 ' (With Comparative Amounts for the Year Ended December 31, 1996) EXPENDITURES - CONTINUED Current - Continued General Government - Continued Municipal building Supplies Other services and charges Total Other general government Personal services Supplies Other services and charges Total Total General Government Public Safety Police protection Supplies Other services and charges Total Fire protection Other services and charges Protective inspection Personal services Supplies Other services and charges Total Total Public Safety 1997 1996 Variance - ' Favorable Budget Actual (Unfavorable) Actual ' $ 8,700 $ 8,180 $ 520 $ 9,472 85,600 79,255 6,345 75,882 ' 94,300 87,435 6,865 85,354 79,519 73,631 5,888 78,669 18,800 16,118 2,682 17,491 14,450 18,888 (4,438) 15,053 ' 112,769 108,637 4,132 111,213 ' 813,029 807,892 5,137 767,392 1,133 (1,133) 1,043 502,155 504,346 (2,191) 466,633 ' 502,155 505,479 (3,324) 467,676 ' 151,893 151,893 - 136,942 ' 67,418 61,489 5,929 59,911 400 48 352 847 ' 26,500 24,708 1,792 24,528 94,318 86,245 8,073 85,286 ' 748,366 743,617 4,749 689,904 ' -26- ' CITY OF SHOREWOOD, MINNESOTA Exhibit A -2 GENERAL FUND ' STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1997 (With Comparative Amounts for the Year Ended December 31, 1996) 1997 1996 ' Variance - Favorable ' Budget Actual (Unfavorable) Actual EXPENDITURES - CONTINUED Current - Continued Public Works ' General maintenance Personal services $ 135,716 $ 173,382 $ (37,666) $ 181,638 Supplies 36,200 32,008 4,192 36,881 ' Other services and charges 18,350 16,879 1,471 18,088 ' Total 190,266 222,269 (32,003) 236,607 Streets and highways Personal services 85,755 72,659 13,096 65,072 ' Supplies 34,000 32,733 1,267 33,779 Other services and charges 29,600 21,280 8,320 28,069 126,672 22,683 126,920 Total 149,355 Snow and ice removal ' Personal services 25,476 22,126 3,350 32,776 Supplies 20,000 20,277 (277) 17,265 ' 42,403 3,073 50,041 Total 45,476 Traffic control Supplies 4,000 4,161 (161) 4,021 Other services and charges 33,500 34,762 (1,262) 33,546 38,923 (1,423) 37,567 Total 37,500 Sanitation and waste removal ' Personal services 612 1,730 (1,118) 999 Other services and charges 4,000 3,377 623 3,621 ' Total 4,612 5,107 (495) 4,620 CITY OF SHOREWOOD, MINNESOTA Exhibit A -2 GENERAL FUND ' STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1997 , (With Comparative Amounts for the Year Ended December 31, 1996) EXPENDITURES - CONTINUED Current - Continued Public Works - Continued Tree maintenance Personal services Supplies Total Total Public Works Culture and Recreation Personal services Supplies Other services and charges Total Culture and Recreation Total Current Expenditures Capital Outlay General government Public safety Culture and recreation Total Capital Outlay Debt Service Principal Interest and other Total Debt Service TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES 1997 1996 Variance - ' Favorable Budget Actual (Unfavorable) Actual ' $ 7,740 $ 3,654 $ 4,086 $ 6,165 13,795 12,728 1,067 10,687 ' 21,535 16,382 5,153 16,852 472,607 ' 448,744 451,756 (3,012) 72,645 ' 86,551 74,877 11,674 19,550 16,441 3,109 16,790 24,125 23,586 539 19,814 ' 13 0, 226 114,904 15,322 109,249 2,140,365 2,118,169 22,196 2,039,152 ' 15,074 ' 14,731 13,365 1,366 - 455 (455) - 1,250 289 961 739 ' 15,981 14,109 1,872 15,813 15,103 15,103 - - 22,447 22,441 6 37,550 37,544 6 - 24,074 2,054,965 ' 2,193,896 2,169,822 125,870 402,790 ' 374,395 500,265 -28- ' CITY OF SHOREWOOD, MINNESOTA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1997 (With Comparative Amounts for the Year Ended December 31, 1996) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCE, JANUARY 1 FUND EQUITY TRANSFERS IN FUND BALANCE, DECEMBER 31 Exhibit A -2 1997 1996 Variance - Favorable Budget Actual (Unfavorable) Actual $ 10,000 $ - $ (10,000) $ - (444,395) (444,395) - (424,186) (434,395) (444,395) (10,000) (424,186) $ (60,000) 55,870 $ 115,870 (21,396) 1,522,952 1,544,348 88 - $ 1,578,910 $ 1,522,952 -29- CITY OF SHOREWOOD, MINNESOTA L DEBT SERVICE FUNDS Debt service funds are used to account for the payment of interest and principal on long- term general obligation debt other than debt issued for and serviced primarily by enterprise funds. 1993 Improvement and Refunding Fund - This fund was established to account for the accumulation of resources for payment of interest and principal on bonds issued for the ' Season's development improvements and to refund the 1987 refunding bonds. Waterford III Tax Increment Fund - This fund was established to account for the ' accumulation of resources for payment of interest and principal on bonds issued for the Waterford III Intersection Improvements. 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. This issue was retired in 1997, and the residual fund balance was transferred to the General Fund. ' 1991 Improvement and Refunding 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. L CITY OF SHOREWOOD, MINNESOTA Exhibit C -2 CAPITAL PROJECTS FUNDS Continued COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) - CONTINUED YEAR ENDED DECEMBER 31, 1997 (With Comparative Totals for the Year Ended December 31, 1996) REVENUE Intergovernmental Special assessments Interest on investments Miscellaneous Park dedication fees Contributions and donations Other TOTAL REVENUE EXPENDITURES Capital outlay Other services and charges Professional services Construction costs Machinery and equipment TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Lease purchase proceeds Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUND BALANCE (DEFICIT), JANUARY 1 FUND EQUITY TRANSFER IN FUND EQUITY TRANSFER OUT FUND BALANCE (DEFICIT), DECEMBER 31 Shady Island Cathcart Bridge Park Total Reconstruction Improvements 1997 $ _ $ - $ 132,394 2,287 2,403 - 91,933 1996 $ 94,620 1,404 110,342 _ - 40,000 17,500 _ - 5,507 371,020 _ - 27,073 220 2,403 - 299,194 595,106 250 11 8,101 37,914 60,292 - 111,745 114,336 249,537 - 678,026 441,377 - - 118,136 158,468 - 3,596 310,079 11 916,008 752,095 (27,916) $ 26,339 $ (307,676) (11) (616,814) (156,989) 360,000 - 829,895 568,270 - 311,000 (395,500) (239,999) 360,000 - 434,395 639,271 52,324 (11) (182,419) 482,282 (25,985) 3,607 1,945,545 1,376,837 _ - 3,596 114,342 - (3,596) (3,596) (27,916) $ 26,339 $ - $1,763,126 $1,945,545 -39- CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS Enterprise funds are used to account for operations that are 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 fund is used to account for the activities of the City water system and to service debt incurred in the building of infrastructure for the system. Sewer Fund - This fund is used to account for the activities of the City sanitary sewer system. Recycling Fund - This fund is used to account for the activities of the City recycling program. Stormwater Management Utility Fund - This fund is used to account for the activities of the City Stormwater Management system. Liquor Fund - This fund is used to account for the activities of the City's off -sale liquor operation. The operation consisted of three off -sale liquor store sites in 1997. A portion of the net income generated by the operation, if any, is used to fund general fund activities. THIS PAGE IS LEFT BLANK INTENTIONALLY CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1997 (With Comparative Totals for December 31, 1996) ASSETS CURRENT ASSETS Cash and temporary investments Accrued interest receivable Delinquent taxes receivable Accounts receivable Special assessments receivable Delinquent Deferred Current portion of note receivable Inventories, at cost Prepaid items TOTAL CURRENT ASSETS FIXED ASSETS, AT COST LESS ACCUMULATED DEPRECIATION NET FIXED ASSETS OTHER ASSETS Bond discount, net of amortization Notes receivable, less current portion above TOTAL OTHER ASSETS 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 Unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY Water Sewer Recycling $ 1,074,642 $ 1,297,812 $ 14,258 14,376 17,088 242 113 - - 44,149 184,698 8,683 16,161 16,651 400 949,933 24,372 1,498 46,500 - - 4,361 1,823 - 2,150,235 1,542,444 25,081 6,263,070 7,629,683 - (926,350) (4,315,143) - 5,336,720 3,314,540 - 20,085 - - 93,000 - - 113,085 - - $ 7,600,040 $ 4,856,984 $ 25,081 $ 35,802 $ 9,722 $ 1,924 254 133 - 185,000 - - 221.056 9,855 1,924 2,470,000 - - 2,691,056 9,855 1,924 4,710,924 4,460,022 - 198,060 387,107 23,157 4,908,984 4,847,129 23,157 $ 7,600,040 $ 4,856,984 $ 25,081 -40- Exhibit D -1 Stormwater Management Utility Liquor Tot als 1997 1996 $ 233,903 $ 55,487 $ 2,676,102 $ 2,393,135 3,066 2,475 37,247 36,219 - - 113 470 12,096 184 249,810 246,279 1,107 - 34,319 32,585 1,265 - 977,068 909,783 - - 46,500 93,000 - 322,939 322,939 281,738 - 11,594 17,778 17,090 251,437 392,679 4,361,876 4,010,299 - 102,488 13,995,241 13,723,770 - (40,761) (5,282,254) (4,988,837) - 61,727 8,712,987 8,734,933 - - 20,085 21,489 - - 93,000 139,500 - - 113,085 160,989 $ 251,437 $ 454,406 $ 13,187,948 $ 12,906,221 $ - $ 122,805 $ 170,253 $ 207,929 36 8,421 8,844 7,512 - - 185,000 125,000 36 131,226 364,097 340,441 - - 2,470,000 2,655,000 36 131,226 2,834,097 2,995,441 - - 9,170,946 8,817,958 251,401 323,180 1,182,905 1,092,822 251,401 323,180 10,353,851 9,910,780 $ 251,437 $ 454,406 $ 13,187,948 $ 12,906,221 -41- CITY OF SHOREWOOD, MRTNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1997 (With Comparative Totals for the Year Ended December 31, 1996) Water Sewer Recycling OPERATING REVENUE ' Sales $ - $ - $ - Less cost of sales - - - GROSS PROFIT - - r Charges for services 231,890 708,058 71,890 Permits and connection fees 20,976 50,066 - , GROSS PROFIT AND REVENUE 252,866 758,124 71,890 OPERATING EXPENSES ' Personal services 13,749 7,094 571 Supplies 9,190 1,716 2,080 Repairs and maintenance 8,927 4,368 - , Depreciation 91,470 191,393 - Professional services 11,509 1,154 - Contracted services 57,222 52,346 70,053 ' Communication 1,107 138 - Insurance 4,877 2,429 Water purchases 12,780 - - Utilities 45,983 4,404 - MCES disposal charges - 525,231 - Rent - - Advertising - - - Other 15,257 126 81 TOTAL OPERATING EXPENSES 272,071 790,399 72,785 ' OPERATING INCOME (LOSS) (19,205) (32,275) (895) NONOPERATING REVENUE (EXPENSES) General property taxes 15 - - Special assessments 72,882 - - , Interest on investments 49,188 63,771 843 Other income (expense) 43,487 - - Interest expense (120,737) - - ' TOTAL NONOPERATING REVENUE (EXPENSES) 44,835 63,771 843 INCOME (LOSS) BEFORE TRANSFERS 25,630 31,496 (52) ' OPERATING TRANSFERS FROM OTHER FUNDS - - - OPERATING TRANSFERS TO OTHER FUNDS - - - i NET INCOME (LOSS) 25,630 31,496 (52) RETAINED EARNINGS, JANUARY 1 172,430 355,611 23,209 RETAINED EARNINGS, DECEMBER 31 $ 198,060 $ 387,107 $ 23,157 ' -42- ' Exhibit D -2 Stormwater Management Totals Utility Liquor 1997 1996 $ - $ 1,876,660 $ 1,876,660 $ 1,705,040 - (1,492,786) (1,492,786) (1,362,986) - 383,874 383,874 342,054 44,911 - 1,056,749 1,073,136 - - 71,042 34,016 44,911 383,874 1,511,665 1,449,206 3,252 181,364 206,030 196,806 2,278 9,077 24,341 15,471 - - 13,295 15,223 - 10,551 293,414 281,179 7,378 2,688 22,729 9,863 8,683 1,732 190,036 166,129 - - 1,245 1,257 - 13,545 20,851 21,807 - - 12,780 10,492 - 23,799 74,186 76,418 - - 525,231 488,439 - 140,519 140,519 113,514 - 7,154 7,154 9,159 - 13,745 29,209 44,331 21,591 404,174 1,561,020 1,450,088 23,320 (20,300) (49,355) (882) - - 15 16,304 - - 72,882 59,919 12,733 9,167 135,702 140,396 - (1,911) 41,576 20,485 - - (120,737) (74,473) 12,733 7,256 129,438 162,631 36,053 (13,044) 80,083 161,749 10,000 - 10,000 320,150 - - - (74,735) 46,053 (13,044) 90,083 407,164 205,348 336,224 1,092,822 685,658 $ 251,401 $ 323,180 $ 1,182,905 $ 1,092,822 Ci<2 CITY OF SHOREWOOD, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 1997 (With Comparative Totals for the Year Ended December 31, 1996) CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Other income (expense) related to operations Depreciation and amortization (Increase) decrease in assets: Accounts receivable Special assessments receivable Due from other funds Inventory Prepaid items Increase (decrease) in liabilities: Accounts payable Salaries and compensated absences payable Deferred revenue Due to other funds NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers from other funds Operating transfers to other funds NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on note receivable Issuance of bonds, net of discount Principal paid on revenue bonds Interest paid on revenue bonds Acquisition of fixed assets Property taxes collected Special assessments collected NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Fixed assets acquired developers Additions to contributed capital from note proceeds Water Sewer Recycling $ (19,205) $ (32,275) $ (895) 43,487 - - 92,874 191,393 - (428) (3,411) 493 - (94) (525) (356) 241 - (86,003) (2,634) 1,924 93 76 - 30,462 153,296 997 93,000 - - (125,000) - - (120,737) - - (142,388) - - 372 - - 230,448 - - (64,305) - - 52,444 61,568 876 18,601 214,864 1,873 1,056,041 1,082,948 12,385 $ 1,074,642 $ 1,297,812 $ 14,258 $ 57,465 $ 69,390 $ - 44- Exhibit D -3 Stormwater 245,415 134,674 - - 93,000 Management - - - Totals - - (125,000) utility Liquor 1997 1996 $ 23,320 $ (20,300) $ (49,355) $ (882) - (1,911) 41,576 20,485 - 10,551 294,818 282,196 (1) (184) (3,531) (11,441) 170 - (449) 5,180 - - - 34,411 - (41,201) (41,201) (24,291) - (573) (688) 647 - 49,037 (37,676) (34,913) 19 1,144 1,332 3,420 - - - (7,593) - - - (34,411) 23,508 (3,437) 204,826 232,808 10,000 10,000 320,150 - (74,735) 10,000 - 10,000 245,415 134,674 - - 93,000 - - - - 849,293 - - (125,000) (15,000) - - (120,737) (74,473) - (2,228) (144,616) (2,198,226) - - 372 16,336 - - 230,448 296,481 (2,228) (66,533) (1,125,589) 11,010 8,776 134,674 159,284 44,518 3,111 282,967 (488,082) 189,385 52,376 2,393,135 2,881,217 $ 233,903 $ 55,487 $ 2,676,102 $ 2,393,135 $ - $ - $ 126,855 $ 164,424 $ - $ - $ - $ 232,500 -45- CITY OF SHOREWOOD, MINNESOTA Exhibit D4 WATER FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1997 AND 1996 FUND EQUITY Contributed capital 4,710,924 4,427,326 Retained earnings Unreserved 198,060 172,430 TOTAL FUND EQUITY 4,908,984 4,599,756 TOTAL LIABILITIES AND FUND EQUITY $ 7,600,040 $ 7,501,722 -46- 1997 1996 ASSETS CURRENT ASSETS Cash and temporary investments $ 1,074,642 $ 1,056,041 Accrued interest receivable 14,376 17,632 Delinquent taxes receivable 113 470 Accounts receivable 44,149 43,721 Special assessments receivable Delinquent 16,161 16,307 Deferred 949,933 881,217 Current portion of note receivable 46,500 93,000 Prepaid items 4,361 4,005 TOTAL CURRENT ASSETS 2,150,235 2,112,393 FIXED ASSETS, AT COST 6,263,070 6,063,217 LESS ACCUMULATED DEPRECIATION (926,350) (834,877) TOTAL FIXED ASSETS 5,336,720 5,228,340 OTHER ASSETS Bond discount, net of amortization 20,085 21,489 Note receivable, less current portion above 93,000 139,500 TOTAL OTHER ASSETS 113,085 160,989 TOTAL ASSETS $ 7,600,040 $ 7,501,722 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and contracts payable $ 35,802 $ 121,805 Salaries payable 254 161 Current portion of long -term debt 185,000 125,000 TOTAL CURRENT LIABILITIES 221,056 246,966 LONG -TERM LIABILITIES Bonds payable less current portion above 2,470,000 2,655,000 TOTAL LIABILITIES 2,691,056 2,901,966 FUND EQUITY Contributed capital 4,710,924 4,427,326 Retained earnings Unreserved 198,060 172,430 TOTAL FUND EQUITY 4,908,984 4,599,756 TOTAL LIABILITIES AND FUND EQUITY $ 7,600,040 $ 7,501,722 -46- CITY OF SHOREWOOD, MINNESOTA Exhibit D -5 WATER FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT) YEARS ENDED DECEMBER 31, 1997 AND 1996 OPERATING REVENUE Charges for services Permits and connection fees TOTAL OPERATING REVENUE OPERATING EXPENSES Personal services Supplies Repairs and maintenance Depreciation Professional services Contracted services Communication Insurance Water purchases Utilities Other TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERATING REVENUE (EXPENSES) General property taxes Special assessments Interest on investments Other income Interest expense TOTAL NONOPERATING REVENUE (EXPENSES) INCOME BEFORE TRANSFERS OPERATING TRANSFERS FROM OTHERS FUNDS OPERATING TRANSFERS TO OTHERS FUNDS NET INCOME RETAINED EARNINGS (DEFICIT), JANUARY 1 RETAINED EARNINGS, DECEMBER 31 1997 1996 $ 231,890 $ 259,228 20,976 13,450 252,866 272,678 13,749 5,680 9,190 5,412 8,927 8,777 91,470 80,649 11,509 6,306 57,222 49,219 1,107 1,112 4,877 4,575 12,780 10,492 45,983 47,739 15,257 31,173 272,071 251,134 (19,205) 21,544 15 16,304 72,882 59,919 49,188 75,477 43,487 19,725 (120,737) (74,473) 44,835 96,952 25,630 118,496 210,150 (10,726) 25,630 317,920 172,430 (145,490) $ 198,060 $ 172,430 -47- CITY OF SHOREWOOD, MINNESOTA Exhibit D-6 WATER FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1997 AND 1996 -48- 1997 1996 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ (19,205) $ 21,544 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Other income related to operations 43,487 19,725 Depreciation and amortization 92,874 81,666 (Increase) decrease in assets: Accounts receivable (428) (5,725) Prepaid items (356) (231) Increase (decrease) in liabilities: Accounts and contracts payable (86,003) (26,819) Salaries and compensated absences payable 93 (3) NET CASH PROVIDED BY OPERATING ACTIVITIES 30,462 90,157 CASH FLOWS FROM NONCAPTTAL FINANCING ACTIVITIES Operating transfers from other funds - 210,150 Operating transfers to other funds - (10,726) NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES - 199,424 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on note receivable 93,000 - Issuance of bonds, net of discount - 849,293 Bond principal paid (125,000) (15,000) Interest paid on revenue bonds (120,737) (74,473) Acquisition of fixed assets (142,388) (2,173,439) Property taxes collected 372 16,336 Special assessments collected 230,448 296,481 NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (64,305) (1,100,802) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 52,444 77,651 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 18,601 (733,570) CASH AND CASH EQUIVALENTS, JANUARY 1 1,056,041 1,789,611 CASH AND CASH EQUIVALENTS, DECEMBER 31 $1,074,642 $1,056,041 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Fixed assets acquired from developers $ 57,465 $ 91,110 Additions to contributed capital from note proceeds $ - $ 232,500 -48- CITY OF SHOREWOOD, MINNESOTA Exhibit D -7 SEWER FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1997 AND 1996 FUND EQUITY Contributed capital 4,460,022 4,390,632 Retained earnings Unreserved 387,107 355,611 TOTAL FUND EQUITY 4,847,129 4,746,243 TOTAL LIABILITIES AND FUND EQUITY $ 4,856,984 $ 4,758,656 -49- 1997 1996 ASSETS CURRENT ASSETS Cash and temporary investments $ 1,297,812 $ 1,082,948 Accrued interest receivable 17,088 14,885 Accounts receivable 184,698 181,287 Special assessments receivable Delinquent 16,651 14,929 Deferred 24,372 26,000 Prepaid items 1,823 2,064 TOTAL CURRENT ASSETS 1,542,444 1,322,113 FIXED ASSETS, AT COST 7,629,683 7,560,293 LESS ACCUMULATED DEPRECIATION (4,315,143) (4,123,750) NET FIXED ASSETS 3,314,540 3,436,543 TOTAL ASSETS $ 4,856,984 $ 4,758,656 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and contracts payable $ 9,722 $ 12,356 Salaries and compensated absences payable 133 57 TOTAL CURRENT LIABILITIES 9,855 12,413 FUND EQUITY Contributed capital 4,460,022 4,390,632 Retained earnings Unreserved 387,107 355,611 TOTAL FUND EQUITY 4,847,129 4,746,243 TOTAL LIABILITIES AND FUND EQUITY $ 4,856,984 $ 4,758,656 -49- CITY OF SHOREWOOD, MINNESOTA Exhibit D -8 SEWER FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1997 AND 1996 OPERATING REVENUE Charges for services $ 708,058 $ 698,882 Permits and connection fees 50,066 20,566 TOTAL OPERATING REVENUE 758,124 719,448 OPERATING EXPENSES Personal services 7,094 9,645 Supplies 1,716 1,689 Rep4irs and maintenance 4,368 6,446 Depreciation 191,393 190,154 Professional service 1,154 752 Contracted services 52,346 31,647 Communication 138 145 Insurance 2,429 3,540 Utilities 4,404 4,440 MCES charges 525,231 488,439 Other 126 1,203 TOTAL OPERATING EXPENSES 790,399 738,100 OPERATING LOSS (32,275) (18,652) NONOPERATING REVENUE Interest on investments 63,771 54,019 Other income - 2,243 TOTAL NONOPERATING REVENUE 63,771 56,262 INCOME BEFORE OPERATING TRANSFERS 31,496 37,610 OPERATING TRANSFERS TO OTHER FUNDS - (24,201) NET INCOME 31,496 13,409 RETAINED EARNINGS, JANUARY 1 355,611 342,202 RETAINED EARNINGS, DECEMBER 31 $ 387,107 $ 355,611 -50- CITY OF SHOREWOOD, MINNESOTA SEWER FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1997 AND 1996 CASH FLOWS FROM OPERATING ACTIVITIES Operating loss Adjustments to reconcile operating loss to net cash used by operating activities: Other income related to operations Depreciation (Increase) decrease in assets: Accounts receivable Special assessments receivable Prepaid items Increase (decrease) in liabilities: Accounts and contracts payable Salaries and compensated absences payable Deferred revenue NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfer to other funds CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets 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 Fixed assets acquired from developers Exhibit D -9 1997 1996 $ (32,275) $ (18,652) - 2,243 191,393 190,154 (3,411) 127 (94) 6,464 241 1,064 (2,634) 10,912 76 (2) - (7,593) 153,296 184,717 (24,201) (21,690) 61,568 65,298 214,864 204,124 1,082,948 878,824 $ 1,297,812 $ 1,082,948 $ 69,390 $ 73,314 -51- CITY OF SHOREWOOD, MINNESOTA RECYCLING FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1997 AND 1996 ASSETS Cash and temporary investments Accrued interest receivable Accounts receivable Special assessments receivable Delinquent Deferred TOTAL ASSETS LIABILITIES AND RETAINED EARNINGS CURRENT LIABILITIES Accounts and contracts payable RETAINED EARNINGS Unreserved TOTAL LIABILITIES AND RETAINED EARNINGS Exhibit D -10 1997 1996 $ 14,258 $ 12,385 242 275 8,683 9,176 400 266 1,498 1,107 $ 25,081 $ 23,209 $ 1,924 $ - 23,157 23,209 $ 25,081 $ 23,209 -52- CITY OF SHOREWOOD, MINNESOTA Exhibit D -11 RECYCLING FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1997 AND 1996 NONOPERATING REVENUE (EXPENSES) Interest on investments 843 550 NET INCOME (LOSS) (52) 140 RETAINED EARNINGS, JANUARY 1 23,209 23,069 RETAINED EARNINGS, DECEMBER 31 $ 23,157 $ 23,209 -53- 1997 1996 OPERATING REVENUE Charges for services $ 71,890 $ 70,535 OPERATING EXPENSES Personal services 571 725 Supplies 2,080 - Contracted service 70,053 70,090 Other 81 130 TOTAL OPERATING EXPENSES 72,785 70,945 OPERATING LOSS (895) (410) NONOPERATING REVENUE (EXPENSES) Interest on investments 843 550 NET INCOME (LOSS) (52) 140 RETAINED EARNINGS, JANUARY 1 23,209 23,069 RETAINED EARNINGS, DECEMBER 31 $ 23,157 $ 23,209 -53- CITY OF SHOREWOOD, MINNESOTA Exhibit D -12 RECYCLING FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1997 AND 1996 -54- 1997 1996 CASH FLOWS FROM OPERATING ACTIVITIES Operating loss $ (895) $ (410) Adjustments to reconcile operating loss to net cash provided (used) by operating activities: (Increase) decrease in assets: Accounts receivable 493 (7,205) Special assessments receivable (525) (664) Increase (decrease) in liabilities: Accounts payable 1,924 - NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 997 (8,279) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 876 1,281 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,873 (6,998) CASH AND CASH EQUIVALENTS, JANUARY 1 12,385 19,383 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 14,258 $ 12,385 -54- CITY OF SHOREWOOD, MINNESOTA STORMWATER MANAGEMENT UTILITY FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1997 AND 1996 ASSETS CURRENT ASSETS Cash and investments Accrued interest receivable Accounts receivable Special assessments receivable Delinquent Deferred TOTAL ASSETS LIABILITIES AND RETAINED EARNINGS LIABILITIES Salaries payable RETAINED EARNINGS Unreserved TOTAL LIABILITIES AND RETAINED EARNINGS -55- Exhibit D -13 1997 1996 $ 233,903 $ 189,385 3,066 1,343 12,096 12,095 1,107 1,083 1,265 1,459 $ 251,437 $ 205,365 $ 36 $ 17 251,401 205,348 $ 251,437 $ 205,365 CITY OF SHOREWOOD, MINNESOTA Exhibit D -14 STORMWATER MANAGEMENT UTILITY FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1997 AND 1996 -56- 1997 1996 OPERATING REVENUE Charges for services $ 44,911 $ 44,491 OPERATING EXPENSES Personal services 3,252 1,359 Supplies 2,278 - Professional services 7,378 424 Contracted services 8,683 13,250 TOTAL OPERATING EXPENSES 21,591 15,033 OPERATING INCOME 23,320 29,458 NONOPERATING REVENUE Interest on investments 12,733 4,448 INCOME BEFORE OPERATING TRANSFERS 36,053 33,906 OPERATING TRANSFER FROM OTHER FUNDS 10,000 110,000 OPERATING TRANSFER TO OTHER FUNDS - (39,808) NET INCOME 46,053 104,098 RETAINED EARNINGS, JANUARY 1 205,348 101,250 RETAINED EARNINGS, DECEMBER 31 $ 251,401 $ 205,348 -56- i CITY OF SHOREWOOD, MINNESOTA Exhibit D -15 STORMWATER MANAGEMENT UTILITY FUND COMPARATIVE STATEMENT OF CASH FLOWS YEARS ENDED DECEMBER 31, 1997 AND 1996 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 11,010 5,880 INCREASE IN CASH AND CASH EQUIVALENTS 44,518 91,136 CASH AND CASH EQUIVALENTS, JANUARY 1 189,385 98,249 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 233,903 $ 189,385 -57- 1997 1996 CASH FLOWS FROM OPERATING ACTIVITIES Operating income $ 23,320 $ 29,458 Adjustments to reconcile operating income to net cash provided by operating activities: (Increase) decrease in assets: Accounts receivable (1) (121) Special assessments receivable 170 (620) Increase (decrease) in liabilities: Accounts payable - (13,625) Salaries payable 19 (28) NET CASH PROVIDED BY OPERATING ACTIVITIES 23,508 15,064 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers from other funds 10,000 110,000 Operating transfers to other funds - (39,808) NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 10,000 70,192 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 11,010 5,880 INCREASE IN CASH AND CASH EQUIVALENTS 44,518 91,136 CASH AND CASH EQUIVALENTS, JANUARY 1 189,385 98,249 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 233,903 $ 189,385 -57- CITY OF SHOREWOOD, MINNESOTA Exhibit D -16 LIQUOR FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1997 AND 1996 LIABILITIES AND RETAINED EARNINGS CURRENT LIABILITIES Accounts and contracts payable $ 122,805 $ 73,768 Salaries and compensated absences payable 8,421 7,277 TOTAL CURRENT LIABILITIES 131,226 81,045 RETAINED EARNINGS Unreserved 323,180 336,224 TOTAL LIABILITIES AND RETAINED EARNINGS $ 454,406 $ 417,269 -58- 1997 1996 ASSETS CURRENT ASSETS Cash and temporary investments $ 55,487 $ 52,376 Accrued interest receivable 2,475 2,084 Accounts receivable 184 - Inventories, at cost 322,939 281,738 Prepaid items 11,594 11,021 TOTAL CURRENT ASSETS 392,679 347,219 FIXED ASSET, AT COST 102,488 100,260 LESS ACCUMULATED DEPRECIATION (40,761) (30,210) TOTAL FIXED ASSETS 61,727 70,050 TOTAL ASSETS $ 454,406 $ 417,269 LIABILITIES AND RETAINED EARNINGS CURRENT LIABILITIES Accounts and contracts payable $ 122,805 $ 73,768 Salaries and compensated absences payable 8,421 7,277 TOTAL CURRENT LIABILITIES 131,226 81,045 RETAINED EARNINGS Unreserved 323,180 336,224 TOTAL LIABILITIES AND RETAINED EARNINGS $ 454,406 $ 417,269 -58- CITY OF SHOREWOOD, MINNESOTA Exhibit D -17 LIQUOR FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1997 AND 1996 OPERATING REVENUE Sales Less cost of sales TOTAL OPERATING REVENUE OPERATING EXPENSES Personal services Supplies Depreciation Professional service Contracted services Insurance Utilities Rent Advertising Other TOTAL OPERATING EXPENSES OPERATING LOSS NONOPERATING REVENUE (EXPENSES) Interest on investments Other expense TOTAL NONOPERATING REVENUE (EXPENSES) NET LOSS RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS, DECEMBER 31 1997 1996 $ 1,876,660 $ 1,705,040 (1,492,786) (1,362,986) 383,874 342,054 181,364 179,397 9,077 8,370 10,551 10,376 2,688 2,381 1,732 1,923 13,545 13,692 23,799 24,239 140,519 113,514 7,154 9,159 13,745 11,825 404,174 374,876 (20,300) (32,822) 9,167 5,902 (1,911) (1,483) 7,256 4,419 (13,044) (28,403) 336,224 364,627 $ 323,180 $ 336,224 -59- THIS PAGE IS LEFT BLANK INTENTIONALLY r CITY OF SHOREWOOD, MINNESOTA Exhibit D -18 LIQUOR FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1997 AND 1996 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets (2,228) (3,097) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 8,776 9,174 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,111 (42,774) CASH AND CASH EQUIVALENTS, JANUARY 1 52,376 95,150 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 55,487 $ 52,376 -60- 1997 1996 CASH FLOWS FROM OPERATING ACTIVITIES Operating loss $ (20,300) $ (32,822) Adjustments to reconcile operating loss to net cash used by operating activities: Other expense related to operations (1,911) (1,483) Depreciation 10,551 10,376 (Increase) decrease in assets: Accounts receivable (184) 1,483 Due from other funds - 34,411 Inventory (41,201) (24,291) Prepaid items (573) (186) Increase (decrease) in liabilities: Accounts and contracts payable 49,037 (5,381) Salaries and compensated absences payable 1,144 3,453 Deferred revenue - (34,411) NET CASH USED BY OPERATING ACTIVITIES (3,437) (48,851) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets (2,228) (3,097) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 8,776 9,174 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,111 (42,774) CASH AND CASH EQUIVALENTS, JANUARY 1 52,376 95,150 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 55,487 $ 52,376 -60- CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMBINING BALANCE SHEETS DECEMBER 31, 1997 AND 1996 ASSETS CURRENT ASSETS Cash and temporary investments Accrued interest receivable Accounts receivable Inventories, at cost Prepaid items TOTAL CURRENT ASSETS FIXED ASSETS, AT COST LESS ACCUMULATED DEPRECIATION NET FIXED ASSETS TOTAL ASSETS LIABILITIES AND RETAINED EARNINGS (DEFICIT) CURRENT LIABILITIES Accounts and contracts payable Salaries and compensated absences payable TOTAL LIABILITIES RETAINED EARNINGS (DEFICIT) Unreserved TOTAL LIABILITIES AND RETAINED EARNINGS (DEFICIT) Tonka Bay Waterford Center 1997 1996 1997 1996 3,609 1,823 $ 58,853 $ 65,401 $(140,706) $ (101,675) 962 1,012 - - 57 - 51 - 73,996 49,822 112,897 112,395 2,790 2,722 4,277 4,095 136,658 118,957 (23,481) 14,815 3,750 2,250 76,403 75,875 (211) (19) (22,663) (14,824) 3,539 2,231 53,740 61,051 $ 140,197 $ 121,188 $ 30,259 $ 75,866 $ 29,730 $ 20,625 $ 30,006 $ 22,667 1,935 2,877 3,609 1,823 31,665 23,502 33,615 24,490 108,532 97,686 (3,356) 51,376 $ 140,197 $ 121,188 $ 30,259 $ 75,866 -61- Exhibit D -19 Shorewood Plaza T otals 1997 1996 1997 1996 2,877 2,577 8,421 7,277 $ 137,340 $ 88,650 $ 55,487 $ 52,376 1,513 1,072 2,475 2,084 76 - 184 - 136,046 119,521 322,939 281,738 4,527 4,204 11,594 11,021 279,502 213,447 392,679 347,219 22,335 22,135 102,488 100,260 (17,887) (15,367) (40,761) (30,210) 4,448 6,768 61,727 70,050 $ 283,950 $ 220,215 $ 454,406 $ 417,269 $ 63,069 $ 30,476 $ 122,805 $ 73,768 2,877 2,577 8,421 7,277 65,946 33,053 131,226 81,045 218,004 187,162 323,180 336,224 $ 283,950 $ 220,215 $ 454,406 $ 417,269 -62- CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMBINING SCHEDULES OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1997 AND 1996 OPERATING REVENUE Sales Less cost of goods sold GROSS PROFIT OPERATING EXPENSES Personal services Supplies Depreciation Professional services Contracted services Insurance Utilities Rent Advertising Other TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERATING REVENUE (EXPENSES) Interest on investments Other income (expense) TOTAL NONOPERATING REVENUE (EXPENSES) NET INCOME (LOSS) RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS (DEFICIT), DECEMBER 31 Tonka Bay Waterford Center 1997 1996 1997 1996 $ 513,525 $ 473,557 $ 579,992 $ 517,863 (416,109) (375,769) (454,862) (413,067) 97,416 97,788 125,130 104,796 55,648 56,090 61,066 59,976 1,859 1,445 2,525 3,524 192 19 7,839 7,769 992 877 848 752 1,064 1,186 358 320 3,796 3,779 4,474 4,492 6,641 7,590 8,901 8,647 14,699 13,843 85,086 70,954 1,331 2,396 3,171 3,682 3,414 3,518 4,597 3,673 89,636 90,743 178,865 163,789 7,780 7,045 (53,735) (58,993) 3,421 2,664 - - (355) (319) (997) (943) 3,066 2,345 (997) (943) 10,846 9,390 (54,732) (59,936) 97,686 88,296 51,376 111,312 $ 108,532 $ 97,686 $ (3,356) $ 51,376 -63- Exhibit D -20 Shorewood Plaza Totals 1997 1996 1997 1996 a /0.3 a / 1J,OLV a l,o /o,DDU a 1, / VJ,V'YV (621,815) (574,150) (1,492,786) (1,362,986) 64,650 63,331 181,364 179,397 4,693 3,401 9,077 8,370 2,520 2,588 10,551 10,376 848 752 2,688 2,381 310 417 1,732 1,923 5,275 5,421 13,545 13,692 8,257 8,002 23,799 24,239 40,734 28,717 140,519 113,514 2,652 3,081 7,154 9,159 5,734 4,634 13,745 11,825 135,673 120,344 404,174 374,876 25,655 19,126 (20,300) (32,822) 5,746 3,238 9,167 5,902 (559) (221) (1,911) (1,483) 5,187 3,017 7,256 4,419 30,842 22,143 (13,044) (28,403) 187,162 165,019 336,224 364,627 $ 218,004 $ 187,162 $ 323,180 $ 336,224 -64- CITY OF SHOREWOOD, MINNESOTA LIQUOR FUND COMBINING SCHEDULES OF CASH FLOWS YEARS ENDED DECEMBER 31, 1997 AND 1996 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Other income (expense) related to operations Depreciation (Increase) decrease in assets: Accounts receivable Due from other funds Inventory Prepaid items Increase (decrease) in liabilities: Accounts and contracts payable Salaries and compensated absences payable Deferred revenue NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS (DEFICIT), JANUARY 1 CASH AND CASH EQUIVALENTS (DEFICIT), DECEMBER 31 Tonka Bay 1997 1996 $ 7,780 $ 7,045 (355) (319) 192 19 (57) - (24,174) (7,471) (68) (128) 9,105 645 (942) 1,851 (8,519) 1,642 (1,500) (2,250) 3,471 4,519 (6,548) 3,911 65,401 61,490 $ 58,853 $ 65,401 -65- Exhibit D -21 Totals Waterford Center Shorewood Plaza 1997 1996 1997 1996 $ (53,735) $ (58,993) $ 25,655 $ 19,126 (997) 7,839 (51) (502) (182) 7,339 1,786 (943) 7,769 1,483 (13,414) (428) (2,761) 385 (559) (221) 2,520 2,588 (76) - - 34,411 (16,525) (3,406) (323) 370 32,593 (3,265) 300 1,217 (38,503) (101,313) 1997 1996 $ (20,300) $ (32,822) (1,911) (1,483) 10,551 10,376 (184) 1,483 - 34,411 (41,201) (24,291) (573) (186) 49,037 (5,381) 1,144 3,453 - (34,411) 43,585 50,820 (3,437) (48,851) (528) (362) (200) (485) (2,228) (3,097) - - 5,305 4,655 8,776 9,174 (39,031) (101,675) 48,690 54,990 3,111 (42,774) (101,675) - 88,650 33,660 52,376 95,150 $ (140,706) $ (101,675) $ 137,340 $ 88,650 $ 55,487 $ 52,376 -66- CITY OF SHOREWOOD, MINNESOTA AGENCY FUNDS Agency funds are established to account for assets held by the City as an agent for others. Deferred Compensation Fund - 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. CITY OF SHOREWOOD, MINNESOTA DEFERRED COMPENSATION AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED DECEMBER 31, 1997 ASSETS Investments for deferred compensation LIABILITIES Deferred compensation benefits payable Exhibit E -1 Balance Balance January 1 Additions Deductions December 31 $ 230,140 $ 74,756 $ 10,053 $ 294,843 $ 230,140 $ 74,756 $ 10,053 $ 294,843 -67- CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP General fixed assets are those fixed assets of a governmental jurisdiction which are not accounted for in an enterprise fund. To be classified as a fixed asset in this category, a specific piece of property must meet three attributes: 1. Tangible nature 2. A life longer than the current fiscal year 3. A significant value CITY OF SHOREWOOD, MINNESOTA Exhibit F -1 GENERAL FIXED ASSETS ACCOUNT GROUP COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE DECEMBER 31, 1997 AND 1996 GENERAL FIXED ASSETS Land Buildings and structures Improvements other than buildings Furniture and equipment TOTAL GENERAL FIXED ASSETS INVESTMENT IN GENERAL FIXED ASSETS General fund Capital projects funds TOTAL INVESTMENT IN GENERAL FIXED ASSETS 1997 1996 $ 456,826 $ 456,826 1,347,876 1,322,073 1,337,388 1,314,258 1,278,551 1,191,2 $ 4,420,641 $ 4,284,453 $ 1,170,125 $ 1,082,870 3,250,516 3,201,583 $ 4,420,641 $ 4,284,453 -68- CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY DECEMBER 31, 1997 FUNCTION General government Public works Parks TOTAL GENERAL FIXED ASSETS Exhibit F -2 Buildings Improvements Furniture and other than and Total Land Structures Buildings Equipment $ 694,170 $ - $ 305,372 $ 161,504 $ 227,294 2,309,040 153,500 919,581 184,702 1,051,257 1,417,431 303,326 122,923 991,182 - $4,420,641 $ 456,826 $ 1,347,876 $ 1,337,388 $1,278,551 -69- CITY OF SHOREWOOD, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION YEAR ENDED DECEMBER 31, 1997 General government Public works Culture and recreation TOTAL GENERAL FIXED ASSETS Exhibit F -3 General General Fixed Assets Fixed Assets January 1 Additions Deductions December 31 $ 671,034 $ 25,765 $ 2,629 $ 694,170 2,244,921 179,647 115,528 2,309,040 1,368,498 48,933 - 1,417,431 $ 4,284,453 $ 254,345 $ 118,157 $ 4,420,641 -70- CITY OF SHOREWOOD, MINNESOTA GENERAL LONG -TERM DEBT ACCOUNT GROUP General obligation bonds and 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 outstanding long -term indebtedness which is 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 Long -Term Debt Account Group." Also,, this debt group includes certain liabilities not expected to be liquidated with expendable available financial resources. CITY OF SHOREWOOD, MINNESOTA Exhibit Gl GENERAL LONG -TERM DEBT ACCOUNT GROUP COMPARATIVE STATEMENTS OF GENERAL LONG -TERM DEBT DECEMBER 31, 1997 AND 1996 1997 1996 AMOUNT AVAILABLE FOR DEBT SERVICE Debt service funds $ 478,192 $ 503,635 AMOUNTS TO BE PROVIDED Future tax levies, assessments and tax increments TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED GENERAL LONG -TERM DEBT PAYABLE Compensated absences payable Lease purchase payable General obligation improvement bonds Tax increment revenue bonds TOTAL GENERAL LONG -TERM DEBT PAYABLE 1,151,101 1,459,209 $ 1,629,293 $ 1,962,844 $ 33,396 $ 29,344 295,897 311,000 680,000 822,500 620,000 800,000 $ 1,629,293 $ 1,962,844 -71- CITY OF SHOREWOOD, MINNESOTA SCHEDULE OF BONDS PAYABLE DECEMBER 31, 1997 GENERAL OBLIGATION IMPROVEMENT BONDS G.O. Improvement Bonds of 1991 G.O. Improvement Bonds of 1993 TOTAL TAX INCREMENT REVENUE BONDS Tax Increment Revenue Bonds of 1991 GENERAL OBLIGATION REVENUE BONDS G.O. Water Revenue Bonds G.O. Water Revenue Bonds TOTAL REVENUE BONDS TOTAL ALL BONDS 9.00 5 -01 -91 Final Interest Issue Maturity Rates Date Date 5.40 -5.85 11 -01 -91 2 -01 -02 3.50 -4.45 12 -01 -93 2 -01 -04 9.00 5 -01 -91 2 -01 -00 4.00 -4.75 11 -01 -95 2 -01 -11 4.00 -5.40 11 -01 -96 2 -01 -12 -72- Exhibit G2 Bonds Authorized 12/31/97 and Issued Redeemed Outstanding $ 960,000 $ 485,000 $ 475,000 1,285,000 605,000 680,000 920,000 300,000 620,000 1,920,000 125,000 1,795,000 2,780,000 125,000 2,655,000 $ 4,985,000 $1,030,000 $ 3,955,000 -73- CITY OF SHOREWOOD, MINNESOTA SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 1997 * Tax increment collections will be remitted to the bondholders. Bonds will periodically be called in numerical sequence and redeemed at their accredited value as tax increment collections allow. -74- Total Bonds Year Principal Interest 1998 $ 500,000 $ 328,173 1999 755,000 615,762 2000 320,000 126,608 2001 310,000 111,515 2002 300,000 96,553 2003 205,000 84,334 2004 210,000 74,570 2005 180,000 65,244 2006 190,000 56,240 2007 185,000 46,945 2008 185,000 37,603 2009 185,000 28,040 2010 190,000 18,115 2011 180,000 8,135 2012 60,000 1,620 TOTAL $ 3,955,000 $ 1,699,457 * Tax increment collections will be remitted to the bondholders. Bonds will periodically be called in numerical sequence and redeemed at their accredited value as tax increment collections allow. -74- Exhibit G3 Tax Increment G.O. Improvement Bonds Revenue Bonds* G.O. Revenue Bonds Principal Interest Principal Interest Principal Interest $ 135,000 $ 32,250 $ 180,000 $ 162,540 $ 185,000 $ 133,383 135,000 25,443 440,000 474,385 180,000 115,934 130,000 18,588 - - 190,000 108,020 125,000 11,776 - - 185,000 99,739 115,000 5,139 - - 185,000 91,414 20,000 1,430 - - 185,000 82,904 20,000 480 - - 190,000 74,090 - - - - 180,000 65,244 - - - - 190,000 56,240 - - - - 185,000 46,945 - - - - 185,000 37,603 - - - - 185,000 28,040 - - - - 190,000 18,115 - - - - 180,000 8,135 - - - - 60,000 1,620 $ 680,000 $ 95,106 $ 620,000 $ 636,925 $ 2,655,000 $ 967,426 -75- CITY OF SHOREWOOD, MINNESOTA SECTION III STATISTICAL SECTION -76- CITY OF SHOREWOOD, MINNESOTA Table 1 GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION LAST TEN FISCAL YEARS Fiscal Total General Public Public Culture and N isc/ Debt Year Expenditures Government Safety Works Recreation Transfers Service 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 - 1993 2,184,260 668,410 580,153 436,224 119,473 380,000 - 1994 2,536,943 755,097 618,047 433,699 128,600 601,500 - 1995 2,326,231 723,098 650,703 432,759 115,446 404,225 - 1996 2,479,151 782,466 689,904 472,607 109,988 424,186 - 1997 2,614,217 821,257 744,072 451,756 115,193 444,395 37,544 -76- -77- CITY OF SHOREWOOD, MINNESOTA Table 2 GENERAL FUND REVENUE AND OTHER SOURCES BY SOURCE LAST TEN FISCAL YEARS Total General Licenses Fiscal General Fund Property and Inter - Misc/ Year Revenues Taxes Permits Governmental Fines Transfers 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 1993 2,429,910 1,515,633 247,557 426,102 70,135 170,483 1994 2,531,339 1,487,398 256,243 441,040 73,998 272,660 1995 2,378,009 1,489,822 184,857 440,720 68,765 193,845 1996 2,457,755 1,569,653 205,459 427,468 80,826 174,349 1997 2,670,175 1,703,509 236,672 450,185 76,340 203,469 -77- CITY OF SHOREWOOD, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collection (1) Total Year's Lew Collections Collection Percentage Fiscal Total of Current of Levy Year Lew Year's Lew Collected 1988 $1,293,689 $1,236,536 95.58% 1989 1,300,881 1,249,332 96.04 1990 1,684,576 1,602,385 95.12 1991 1,856,988 *1,793,402 96.58 1992 1,864,577 1,819,238 97.57 1993 1,932,454 1,908,428 98.76 1994 1,518,735 1,505,212 99.11 1995 1,518,108 1,501,389 98.90 1996 1,598,713 1,577,353 98.66 1997 1,703,016 1,683,193 98.84 Collection of Prior Total Year's Lew Collections $ 27,898 $1,264,434 46,405 1,295,737 48,448 1,650,833 41,801 1,835,203 55,917 1,875,155 51,464 1,959,892 13,886 1,519,098 13,999 1,515,388 16,946 1,594,299 19,982 1,703,175 (1) Includes state paid property tax credits * Includes $66,971 state aid reduction from the Homestead and Agricultural Credit Aid. Table 3 Percentage of Total Collections to Lew 97.74% 99.61 98.00 98.83 100.57 101.42 100.02 99.82 99.72 100.01 Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the State. Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be reported net of the HACA received from the state. As a result, the taxes levied more accurately reflect the amount of taxation by the local government. -78- CITY OF SHOREWOOD, MINNESOTA ASSESSED VALUATION, TAX LEVIES AND MILL RATES (shown by year of tax collectibility) Assessed valuation/Tax capacity Contribution to fiscal disparities pool Receivable from fiscal disparities pool Tax increment Taxable valuation/Total tax capacity Tax levies General Debt service Total Mill rates/Tax Capacity Rate General Debt service Total 1997 1996 1995 1994 (1) (1) & (2) (1) & (2) (1) & (2) $9,901,879 $9,115,960 $8,045,468 $7,396,104 (202,668) (178,279) (185,232) (205,973) 350,823 332,110 310,337 375,309 (294,512 (166,094 (22,195 (317 $9,755.522 $9,103,697 $8.148.378 $7.565.123 17.479Rate 17.431Rate 18.471Ratc 19.904Rate (1) As a result of 1988 legislation assessed valuation has been replaced by tax 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. 1988 information is stated in terms of assessed valuation and mill rates. 1989 -1997 information is stated in terms of tax capacity and tax capacity rates. (2) (3) The debt service levy includes $8,508 for 1996, $8,568 for 1995, $8,022 for 1994, $8,526 for 1993 and $8,414 for 1992, ' levied for the retirement of Storm Sewer District No. 2 improvement bonds. Storm Sewer District No. 2 was established by the City of Shorewood in 1991. This portion of the debt service tax levy is only levied within Storm Sewer District No. 2 to retire the $31,000 bond issue used to finance the improvements within the District and is not reflected in the tax rates ' above. Table 5 reports the tax rate of this District separately. Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the ' State. Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be reported net of the HACA received from the state. As a result, the taxes levied more accurately reflect the amount of taxation by the local government. -79- (3) $1,703,016 $1,573,930 $1,491,990 $1,491,888 - 24,783 26,118 26,847 $ 1,703,016 $1.598.713 $1.518.108 $1,518,735 17.479Rate 17.252Rate 18.256Rate 19.655Rate - .179 .215 .249 17.479Rate 17.431Rate 18.471Ratc 19.904Rate (1) As a result of 1988 legislation assessed valuation has been replaced by tax 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. 1988 information is stated in terms of assessed valuation and mill rates. 1989 -1997 information is stated in terms of tax capacity and tax capacity rates. (2) (3) The debt service levy includes $8,508 for 1996, $8,568 for 1995, $8,022 for 1994, $8,526 for 1993 and $8,414 for 1992, ' levied for the retirement of Storm Sewer District No. 2 improvement bonds. Storm Sewer District No. 2 was established by the City of Shorewood in 1991. This portion of the debt service tax levy is only levied within Storm Sewer District No. 2 to retire the $31,000 bond issue used to finance the improvements within the District and is not reflected in the tax rates ' above. Table 5 reports the tax rate of this District separately. Prior to 1994, tax levies included the amount of Homestead and Agriculture Credit Aid (HACA) to be received from the ' State. Legislation passed in 1993 required that, beginning with taxes levied for collection in 1994, tax levies shall be reported net of the HACA received from the state. As a result, the taxes levied more accurately reflect the amount of taxation by the local government. -79- Table 4 1993 1992 1991 1990 1989 1988 (1) & (2) (1) & (2) (1) 17,125 17,925 19,500 $7,092,917 $7,681,118 $7,909,001 $7,033,863 $ 7,705,314 $55,691,698 (227,686) (212,697) (227,257) (209,164) (218,604) (1,699,452) 396,081 390,694 388,595 372,707 347,288 2,597,611 $ 7,261,312 $7.859.115 $8,070,339 $7.197.406 $ 7.833.998 $56.589.857 $1,909,253 $1,840,663 $1,840,663 $1,667,451 $ 1,282,956 $ 1,274,189 23,201 23,914 16,325 17,125 17,925 19,500 $1.932.454 $1.864.577 $1.856.988 $1.684.576 $ 1.300,881 $ 1.293.689 20.638Rate 19.995Rate 20.274Rate 20.093Rate 16.282 Rate 22.481 Rate .159 .169 .180 .206 .227 .344 20.797Rate 20.164Rate 20.454Rate 20.299Rate 16.509 Ram 22.825 Rate -80- CITY OF SHOREWOOD, MINNESOTA PROPERTY TAX MILL RATES/TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS ' (PER $1000 OF ASSESSED VALUE FOR YEARS 1988 AND TAX CAPACITY IN 1989 -1997) Year (1) Taxes School District Watershed District Payable City Coun No. 276 No. 277 No.3 No.4 Miscellaneous 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 1993 20.797 (2) 35.839 75.275 60.069 .668 .781 5.532 1994 19.904 (2) 37.441 77.323 67.785 .334 .707 5.724 1995 18.471 (2) 37.454 76.139 66.441 2.332 .762 5.847 1996 17.431 (2) 37.270 76.340 62.418(3) 1.533 .864 6.390 1997 17.479 (2) 35.515 78.420 52.223 1.319 .860 6.149 (1) Includes vocational school (2) Information for 1989 -1997 is stated in terms of tax capacity rates due to 1988 legislative changes as explained in Table 4. (3) Includes market value levy of .077. -81- � Table 5 -82- Totals School District No. 276 School Storm Watershed Dist. No. 277, Sewer Watershed Watershed District No. 4 Watershed District District District Storm Sewer District No. 2 No. 3 No. 4 District No. 2 No. 3 - 126.012 126.490 126.490 119.122 - 108.357 108.727 108.727 98.211 - 107.114 107.430 107.430 96.890 - 113.955 114.273 114.273 104.382 17.792 124.649 124.997 142.789 116.762 13.437 138.111 138.224 151.661 122.905 15.495 140.726 141.099 156.594 131.188 15.353 140.243 138.673 154.026 130.545 13.956 138.964 138.295 152.251 125.042 - 138.882 138.423 138.423 112.685 -82- Taxnaver Northern States Power Company Minnetonka Country Club First State Bank Excelsior Shorewood Village Shopping Center, Inc. Minnegasco Waterford Partners LLC Two S Properties Steven C & Mary Sue Simon NSP Property Tax Dept. MFT, Inc. Total CITY OF SHOREWOOD, MINNESOTA PRINCIPAL TAXPAYERS DECEMBER 31, 1997 Type of Business Utility Commercial Commercial Commercial Utility Commercial Residential/Commercial Residential Lakeshore Utility Residential Lakeshore Table 6 Percentage 1997 Tax of Total Capaci Tax Capacity $ 75,460 .77% 69,838 .72 69,150 .71 63,850 .65 59,188 .61 57,666 .59 38,557 .40 33,125 .34 32,808 .34 31,738 .33 $ 531,380 5.46 -83- CITY OF SHOREWOOD, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collection of Prior Total (1) Collections Collection Percentage Fiscal Total of Current of Levy Year Lew Year's Lew Collected 1988 $ 644,367 $ 637,874 98.99% 1989 500,116 497,733 99.52 1990 457,384 444,080 97.09 1991 365,577 345,886 94.61 1992 362,352 317,103 87.51 1993 231,800 222,842 96.14 1994 198,729 185,061 93.12 1995 170,157 159,018 93.45 1996 233,219 197,667 84.76 1997 223,274 204,178 91.45 Collection of Prior Total Year's Lew Collections $ 33,724 $ 671,598 66,916 564,649 53,452 497,532 28,677 374,563 19,461 336,564 47,372 270,214 6,025 191,086 12,896 171,914 6,660 204,327 17,545 221,723 Table 7 Percentage of Total Collections to Lew 104.23% 112.90 108.78 102.46 92.88 116.57 96.15 101.03 87.61 99.31 -84- CITY OF SHOREWOOD, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31, 1997 Market Value Debt Limit: 2.0% of market value (Note A) Amount of Debt Applicable to Debt Limit: Total Bonded Debt $ 3,955,000 Less, (Note B) Improvement Bonds (680,000) General Obligation Revenue Bonds (2,655,000) Tax Increment Revenue Bonds ( 620,000 ) Total Debt Applicable to Debt Limit Legal Debt Margin Note (A): M.S.A. Section 475.53 (Limit on Net Debt) Table 8 $ 555.709.500 ' $ 11,111,997 $ 11.111.997 1 "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 here under 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 benefited 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) Warrants or orders having no definite or fixed maturity. (3) Obligations payable wholly from the income from revenue - producing conveniences. , (4) Obligations issued to create or maintain a permanent improvement revolving fund. (5) 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. -85- ' CITY OF SHOREWOOD, MINNESOTA RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Table 9 (1) Assessed Fiscal Estimated Value/Tax (2) Gross Year Population Capacity Bonded Debt 1988 5094 $56,589,857 $4,530,000 1989 5815 7,833,998 2,990,000 1990 5917 7,197 406 2,720,000 1991 6000 8,070,339 3,411,000 1992 6135 7,859,115 2,496,000 1993 6322 7,261,312 2,546,500 1994 6430 7,565,123 1,850,500 1995 6614 8,148,378 3,524,500 1996 6794 9,103,697 3,602,500 1997 6889 9,755,522 3,335,000 Table 9 (1) As a result of 1988 legislation, assessed valuation has been replaced by tax 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. 1988 information is stated in terms of assessed valuation and mill rates. 1989 -1997 information is stated in terms of tax capacity and tax capacity rates. (2) 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 Tax Increment Revenue Bonds (totaling $620,000) are not included in the gross bonded debt as they are not backed by the full faith and credit of the City. -86- Ratio of Net Bonded Debt Net Less Amount to Assessed Bonded Reserved for Net Values/ Debt Debt Service Bonded Debt Tax Capacity Per Capita $ 2,688,009 $1,841,991 .0325:1 361.60 1,510,303 1,479,697 .1889:1 254.46 1,902,837 817,163 .1135:1 138.10 2,311,859 1,099,141 .1362:1 183.19 1,742,742 753,258 .0958:1 122.78 1,999,197 547,303 .0754:1 86.57 1,485,579 364,921 .0482:1 56.75 1,419,732 2,104,768 .2583:1 318.17 503,635 3,098,865 .3404:1 456.12 478,192 2,856,808 .2928:1 414.69 (1) As a result of 1988 legislation, assessed valuation has been replaced by tax 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. 1988 information is stated in terms of assessed valuation and mill rates. 1989 -1997 information is stated in terms of tax capacity and tax capacity rates. (2) 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 Tax Increment Revenue Bonds (totaling $620,000) are not included in the gross bonded debt as they are not backed by the full faith and credit of the City. -86- H ( (3) ( * CITY OF SHOREWOOD, MINNESOTA Table 10 ' R ^ TIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT (1) TO TOTAL GENERAL EXPENDITURES* ' Percent of ' Debt Service Total Total General to General Year Principal Interest Debt Service Expenditures* Expenditures 1988 $ 435,000 $ 274,636 $ 709,636 $ 1,898,594 37.38% ' 1989 2,625,000 253,113 2,878,115 1,794,684 160.37 1990 260,000 175.098 435,098 2,065,011 21.07 ' 1991 290,000 1 463,495 2,241,781 20.68 1992 905,000 167,163 1,072,163 2,301,950 46.58 1993 264,500 141,889 406,389 2,184,260 18.61 1994 681,000 120,862 801,862 2,536,943 31.61 ' 1995 231,000 99,823 330,823 2,326,231 14.22 1996 767,000 72,461 839,461 2,479,151 33.86 1997 142,500 39,921 182,421 2,614,217 6.98 ' Excludes G.O. Bonds reported in Enterprise Funds and the $920,000 Tax Increment Revenue Bonds are not included in ' the gross bonded debt as they are not backed by the full faith and credit of the City. Principal included bonds defeased in 1989 ' Principal included bonds called in 1994 Principal included bonds called in 1996 ' Includes General Fund only ' -87- CITY OF SHOREWOOD, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT DECEMBER 31, 1997 Direct Debt* City of Shorewood Overlapping Debt Hennepin County Hennepin Suburban Park District School District #276 School District #277 Metropolitan Council Total Overlapping Debt Total Direct and Overlapping Debt Table it * 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. Tax increment revenue bonds supported only by the tax increments generated within the TIF District are excluded from this computation consistent with Table 9. -88- Amount Gross Bonded Percentage of Net Debt Debt Used for Applicable Applicable Net Debt Calc Net Debt District to District $ 3,335,000 $ 2,856,808 100.00% $ 2,856,808 106,385,000 100,776,3 98 1.00 1,007,616 12,225,000 9,669,528 1.34 129,193 57,395,000 38,725,000 19.14 7,410,910 13,200,000 12,724,560 2.07 263,848 118,555,000 83,155,873 .50 412,586 307,760,000 245,051,359 3.76 9,224,154 $311.095.000 $247.908.167 4.87 $12.080962 * 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. Tax increment revenue bonds supported only by the tax increments generated within the TIF District are excluded from this computation consistent with Table 9. -88- THIS PAGE IS LEFT BLANK INTENTIONALLY CITY OF SHOREWOOD, MINNESOTA Table 12 REVENUE BOND COVERAGE LAST TEN FISCAL YEARS (1) Excluding depreciation and interest on bonds -89- Net Ratio of Net Fiscal Gross (1) Revenue Debt Service Revenue to Year Revenue Expenses Available Principal Interest Total Debt Service 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 172,569 126,614 45,955 10,000 6,493 16,493 2.786 to 1 1992 199,891 125,714 74,177 10,000 5,823 15,823 4.688 to 1 1993 172,624 139,490 33,134 10,000 4,860 14,860 2.230 to 1 1994 262,892 159,179 103,173 15,000 4,035 19,035 5.449 to 1 1995 198,566 166,970 31,596 15,000 3,486 18,486 1.710 to 1 1996 272,678 170,485 102,193 15,000 74,473 89,473 1.142 to 1 1997 252,866 180,601 72,265 125,000 120,737 245,737 .294 to 1 (1) Excluding depreciation and interest on bonds -89- CITY OF SHOREWOOD, MINNESOTA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Sources (1) City Planning and Inspection Department (2) County Assessor's Office (3) 1st State Bank of Excelsior (Bank deposits are not shown for years 1988 -1995 as no banks are located within the City limits during this period.) -90- (1) Commercial (1) Construction Residential Construction Fiscal Number Year Value of Units Value 1988 $ 401,004 157 $ 29,040,667 1989 - 89 16,949,136 1990 20,000 82 16,252,990 1991 - 69 14,044,120 1992 - 55 10,899,687 1993 - 102 17,941,776 1994 960,000 86 16,530,925 1995 2,030,000 40 10,167,210 1996 1,350,000 37 9,393,436 1997 695,000 41 11,825,463 Sources (1) City Planning and Inspection Department (2) County Assessor's Office (3) 1st State Bank of Excelsior (Bank deposits are not shown for years 1988 -1995 as no banks are located within the City limits during this period.) -90- Table 13 -91- (2) Property Value (3) Commercial Residential Total Bank Deposits $ 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 - 11,307,900 391,057,000 402,364,900 - 11,338,700 413,780,300 425,119,000 - 9,793,000 453,616,100 463,409,100 - 10,562,200 517,983,900 528,546,100 40,895,000 13,034,900 542,674,600 555,709,500 52,906,000 -91- CITY OF SHOREWOOD, MINNESOTA Table 14 MISCELLANEOUS STATISTICS DECEMBER 31, 1997 Year of incorporation 1956 Form of government Council - Administrator Sewer rates - residential Adopted May 14, 1956 Fiscal year begins January 1 Area of city 6.0 Square Miles Population 15.2 1996 Estimated 6,889 1990 Census 5,917 1980 Census 4,646 1970 Census 4,223 Miles of streets and alleys 22 City streets 38.1 Municipal state aid streets 9.8 County roads 1.7 State highway 2.7 Sewer 5 Lift stations 15 Sewer rates - residential $65.00 /quarter Miles of sewer lines 56.2 Number of street lights 177 Building permits issued in 1996 15.2 Number of permits 671 Value $17,991,397 Fire protection: Contracted services with Mound and Excelsior Police protection: Contracted services with South Lake Minnetonka Police Department Parks Number 5 Acres 95.8 Water Number of connections 1,028 Average daily consumption 403,000 gallons Miles of watermain 15.2 Daily capacity 4,680,000 gallons Number of fire hydrants 165 Water rate per thousand gallons $1.45/1000 gallons Employees Regular 22 Part- time /seasonal 2 0 Total 42 Elections Registered voters last election 5,066 Number of votes cast last election 4,262 Percentage of registered voters voting 84.1% -92-