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2015-05-11 - Council Agenda Packet
Agenda Corcoran City Council May 11, 2015 - 7:00 PM 1. Call to Order / Roll Call 2. Pledge of Allegiance 3. Agenda Approval 4. Open Forum 5. Presentations a. 2014 Audit — Mark Ebensteiner, Abdo Eick and Meyers* 6. Consent Agenda a. Draft Minutes of April 23, 2015 Council Meeting* 7. Claims as Presented * a. Escrow Claims (Fund #500) b. All Other Financial Claims 8. Staff Reports / Memos /Commissions a. Open Book Meeting Recap* b. ISO Rating* c. Cash Balance Report Overview* 9. Planning Business / Landform a. Consideration of Ordinance Changes Regarding the Creation of Lots without Development Rights* b. Three Rivers Park District Sign Request* 10. Unfinished Business a. Southeast District Sewer and Water Improvement Project —Pay Request #5* 11. New Business a. Asbestos and Hazardous Material Assessment — 20112 County Road 10* b. Administration Department Transition Plan* c. Maintenance and Service Contract — JOTS Computer Services, Inc.* 12. Unscheduled Items 13. 2015 Council Schedule* 14. Council Liaison Calendar Planning Commission 05/07/15 06/04/15 07/02/15 08/06/15 09/03/15 Cancelled Thomas Guenthner LaFave Keefe Parks and Trails Commission 05/19/15 06/16/15 07/21/15 08/18/15 09/15/15 Thomas Guenthner LaFave Keefe Hank 15. Adjournment *Includes Materials - Materials relating to these agenda items can be found in the House Agenda Packet by Door. City of Corcoran Corcoran, Minnesota or the Year Ended 31, 2014 "I AB .n SICK & People +Process® ME YE E1 W LLP Cxrgfied ftdbc Accountants & Consuhants Beyondth,, NurT bens T.-ABDO 7 LSICK & - WYE RS LLP Ortified Public Accountants & Consultants April 24, 2015 Management, Honorable Mayor and City Council City of Corcoran, Minnesota We have audited the financial statements of the governmental activities, business -type activities, each major fund and the aggregate remaining fund information of the City of Corcoran, Minnesota (the City), for the year ended December 31, 2014. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated November 7, 2014. Professional standards also require that we provide to you the following information related to our audit. Our Responsibility under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control over financial reporting of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control over financial reporting. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified However, as described on the following pages, we identified a certain deficiency in internal control that we consider to be a material weakness and another we consider to be a significant deficiency. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described on the following page as item 2014 -002 to be a material weakness. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described on the following page as item 2014 -001 to be a significant deficiency. 5201 Eden Avenue, Suite 250 Edina, MN 55436 _ 952.835.9090 1 Fax 952.835.3261 -1 2014 -001 Preparation of financial statements Condition: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management's responsibility to provide for the preparation of your statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. It is our responsibility to inform you that this deficiency could result in a material misstatement to the financiall statements that could have been prevented or detected by your management. Essentially, the auditors cannot be part of your internal control process. Criteria: Internal controls should be in place to provide reasonable assurance over financial reporting. Cause: From a practical standpoint we do both for you at the same time in connection with our audit. This is not unusual for us to do with an organization of your size. Effect: The effectiveness of the internal control system relies on enforcement by management. The effect of deficiencies in internal controls can result in undetected errors in financial reporting. Recommendation: It is your responsibility to make the ultimate decision to accept this degree of risk associated with this condition because of cost or other considerations. As in prior years, we have instructed management to review a draft of the auditor prepared financials in detail for their accuracy; we have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification of disclosure in your statements. We are satisfied that the appropriate steps have been taken to provide you with the completed financial statements. While the City is reviewing the financial statements we recommend the City agree the balances in their financial software to the numbers reported in the financial statements. Management response: For now, the City's management accepts the degree of risk associated with this condition and thoroughly reviews a draft of the financial statements. -2- People +Process Going a Beyondthe Numbers 2014 -002 Material audit adjustments Condition: During our audit, an adjustment was needed to reclass activity related to the Hope Center capital project from the agency fund to a capital project fund. In addition to the reclass, entries were necessary to record retainage payable, due from other governments, and accounts receivable. Also during our audit an entry was needed to record an additional building inspection payable. Criteria: The financial statements are the responsibility of the City's management; therefore, the City must be able to prevent or detect a material misstatement in the financial statements including footnote disclosures. Cause: The City tracked all the Hope Center project in the agency fund and the building inspection expense was recorded on a cash basis. The year -end trial balance did not reflect all necessary accounting entries related to these items. Effect.• The governmental fund financial statements did not reflect the activity of the Hope Center capital project since it was reported in the agency fund. The General fund liabilities and expenditures were understated without the building inspection payable. Recommendation: We recommend that management review the related journal entry, obtain an understanding of why the entry was necessary and modify current procedures to ensure that future corrections are not needed. Management response: Management understands the finding, and concurs that complete reconciliations of all accounts, including journal entries to adjust balances to these reconciliations needs to be done prior to the start of the audit. Staff strives to make sure this is done. Compliance 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 Minnesota statutes. 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. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City's compliance with those requirements. The results of our tests disclosed no instances of noncompliance that is required to be reported under Minnesota statutes. Summary of prior year findings 2014 -001 Time period for payment Condition: Auditing for legal compliance requires a review of the City's deposits and investments. Our study indicated an instance of non - compliance that we believe is required to be remedied. Criteria: Minnesota statute section 471.425 requires that the City pay bills within 35 days from receipt. If the invoice is not paid within the 35 days, interest at 1.5 percent per month is to be added to amount due. Current year status: City staff implemented procedures over the accounts payable process to consider the payment terms required by statute, no issues were noted in 2014 and the finding has been removed. -3- People +Process Going a Beyondthe Numbers Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not change during the year ended December 31, 2014. We noted no transaction entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumption about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements were depreciation on capital assets and allocation of payroll including compensated absences and other postemployment benefits. Management's estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight -line method. Allocations of gross wages and payroll benefits are approved by City Council within the City's budget and are derived from each employee's estimated time to be spent servicing the respective functions of the City. These allocations are also used in allocating accrued compensated absences payable. Management's estimate of its OPEB liability is based on several factors including, but not limited to, anticipated retirement age for active employees, life expectancy, turnover, and healthcare cost trend rate. We evaluated the key factors and assumptions used to develop depreciation in determining that it is reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. We proposed two journal entry that we consider to be audit entries or correction of management decisions. This related to the situation previously discussed in finding 2014 -002. We assisted in preparing a number of year -end accounting entries. These were necessary to adjust the City's records at year end to correct ending balances. The City will receive better more timely information if the preparation of year -end entries is completed internally. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated April 24, 2015. -4- People +Process Going a Beyondthe Numbers Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Matters With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Financial Position and Results of Operations Our principal observations and recommendations are summarized below. These recommendations resulted from our observations made in connection with our audit of the City's financial statements for the year ended December 31, 2014. General Fund The General fund is used to account for resources traditionally associated with government, which are not required legally or by sound principal management to be accounted for in another fund. The General fund balance decrease $114,902 from 2013. The unrestricted fund balance of $1,085,355 is 30.1 percent of the 2015 budgeted expenditures. We recommend the fund balance be maintained at a level sufficient to fund operations until the major revenue sources are received in June. The City has a fund balance policy that sets a goal to maintain an unrestricted balance of not less than 35 percent of planned expenditures in reserve. At the current level, the fund balance is below the targeted level. The purposes and benefits of a fund balance are as follows: • 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 governmental fund expenditures. • Expenditures not anticipated at the time the annual budget was adopted may need immediate City 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, improving or obtaining its bond rating. The result will be better interest rates in future bond sales. Irba People +Process Going a Beyondthe Numbers A table summarizing the General fund balance in relation to budget follows: $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Fund Balance as a Percent of Next Year's Budget $3,152,256 $3,175,544 $3,326,938 $3,610,091 $3,005,739 37.1% ° 31.0% 23.3% 23.8% 29.7 /0 28.9% 30.1% 0 15.0% 21.0% 13.8% 2010 2011 2012 2013 2014 2015 —#—Total Fund Balance —41— Unrestricted Fund Balance —*--Budget -6- People +Process Going a Beyondthe Numbers Percent Percent Total Unrestricted General of Total of Unrestricted Fund Balance Fund Balance Budget Fund Fund Balance Fund Balance Year December 31 December 31 Year Budget to Budget to Budget 2010 $ 698,923 $ 415,229 2011 $ 3,005,739 23.3 % 13.8 % 2011 749,070 471,772 2012 3,152,256 23.8 15.0 2012 942,753 668,338 2013 3,175,544 29.7 21.0 2013 1,232,663 961,389 2014 3,326,938 37.1 28.9 2014 1,117,761 1,085,355 2015 3,610,091 31.0 30.1 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Fund Balance as a Percent of Next Year's Budget $3,152,256 $3,175,544 $3,326,938 $3,610,091 $3,005,739 37.1% ° 31.0% 23.3% 23.8% 29.7 /0 28.9% 30.1% 0 15.0% 21.0% 13.8% 2010 2011 2012 2013 2014 2015 —#—Total Fund Balance —41— Unrestricted Fund Balance —*--Budget -6- People +Process Going a Beyondthe Numbers A summary of 2014 General fund revenue and expenditures is as follows: Final Budgeted Actual Variance with Amounts Amounts Final Budget Revenues $ 3,328,288 $ 3,485,573 $ 157,285 Expenditures 3,326,938 3,356,197 (29,259) Excess of revenues over expenditures 1,350 129,376 128,026 Other financing uses Transfers out - (244,278) (244,278) Net change in fund balances 1,350 (114,902) (116,252) Fund balances, January 1 1,232,663 1,232,663 - Fund balances, December 31 $ 1,234,013 $ 1,117,761 $ (116,252) • Revenues provided a positive budget variance of $144,238. The largest positive variances were in licenses and permits, and taxes which were $64,157 and $49,785 over budget, respectively. • Expenditures resulted in a negative budget variance of $29,259. The most significant variance was in public safety with a negative variance of $33,322 due to additional building permit inspection expense. People +Process Going a Beyondthe -7- Numbers A more detailed comparison of General fund revenues and transfers for the last three years is as follows: Percent of Revenues 2012 2013 2014 Total Taxes $ 2,555,838 $ 2,627,327 $ 2,816,660 80.8 % Licenses and permits 74,291 159,524 132,407 3.8 Intergovernmental 250,233 373,000 272,939 7.8 Charges for services 170,619 199,184 163,830 4.7 Fines and forfeitures 80,338 58,194 42,278 1.2 Special assessments - - 20,295 0.6 Interest on investments 1,965 1,026 431 - Miscellaneous 61,762 47,602 36,733 1.1 Total revenues and transfers $ 3,195,046 $ 3,465,857 $ 3,485,573 100.0 % The revenues and transfers summarized above are graphically presented as follows $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Revenues and Transfers Per Canita $ 515 24 50 30 8 4 $ 638 2012 2013 2014 --*--Taxes (Licenses and permits (Intergovernmental —K--Charges for services —I--Other -8- People +Process Going a Beyondthe Numbers A more detailed comparison of expenditures and transfers for the last three years is as follows: The above chart compares the amount the City spends per capita, in comparison to a peer group. The peer group average is compiled from information we have requested from the Office of the State Auditor of 4`" class cities with populations between 2,500- 10,000. The expenditures and transfers summarized above are graphically presented as follows: $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Expenditures and Transfers 2012 2013 2014 —+--General government (Public safety (Public works —K--Transfers out and other —I--Total -9- People +Process Going a Beyondthe Numbers Peer Percent of Per Group Per Programs 2012 2013 2014 Total Capita Capita General government $ 603,825 $ 749,029 $ 724,271 20.1 % $ 132 $ 128 Public safety 1,221,870 1,285,746 1,360,744 37.8 249 221 Public works 1,093,801 1,031,550 1,168,598 32.5 214 114 Culture and recreation 45,314 73,133 55,494 1.5 10 54 Total current 2,964,810 3,139,458 3,309,107 91.9 605 517 Capital outlay 36,553 36,489 47,090 1.3 9 28 Transfers out - - 244,278 6.8 45 - Total expenditures $ 3,001,363 $ 3,175,947 $ 3,600,475 100.0 % $ 659 $ 545 The above chart compares the amount the City spends per capita, in comparison to a peer group. The peer group average is compiled from information we have requested from the Office of the State Auditor of 4`" class cities with populations between 2,500- 10,000. The expenditures and transfers summarized above are graphically presented as follows: $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Expenditures and Transfers 2012 2013 2014 —+--General government (Public safety (Public works —K--Transfers out and other —I--Total -9- People +Process Going a Beyondthe Numbers Special Revenue Funds Special revenue funds include funds used to account for revenue derived from specific revenue sources that are restricted or committed to expenditure for specified purposes. The fund balances of each special revenue fund are as follows: Total Debt Service Funds $ 37,741 $ 35,891 $ 1,850 Debt Service funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt. Debt Service funds may have one or a combination of the following revenue sources pledged to retire debt as follows: • Property taxes - Primarily for general City benefit projects such as parks and municipal buildings. Property taxes may also be used to fund special assessment bonds which are not fully assessed. • Tax increments - Pledged exclusively for tax increment /economic development districts. • Special assessments - Charges to benefited properties for various improvements. In addition to the above pledged assets, other funding sources may be received by Debt Service funds as follows: • Residual project proceeds from the related capital projects fund • Investment earnings • State or Federal grants • Transfers from other funds The following is a recap of the various Debt Service fund assets and related bond principal outstanding: Fund Balances December 31, 2014 Final December 31, Cash Increase Fund 2014 2013 (Decrease) Nomnaj or Assets Debt Date Reserve Donation $ 17,674 $ 15,098 $ 2,576 Police Donation (60) 1,603 (1,663) Firearms Safety (926) 9 (935) DWI Forfeiture 14,837 12,428 2,409 Drug Forfeiture 1,171 1,170 1 Truck Safety 5,045 5,583 (538) Total Debt Service Funds $ 37,741 $ 35,891 $ 1,850 Debt Service funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt. Debt Service funds may have one or a combination of the following revenue sources pledged to retire debt as follows: • Property taxes - Primarily for general City benefit projects such as parks and municipal buildings. Property taxes may also be used to fund special assessment bonds which are not fully assessed. • Tax increments - Pledged exclusively for tax increment /economic development districts. • Special assessments - Charges to benefited properties for various improvements. In addition to the above pledged assets, other funding sources may be received by Debt Service funds as follows: • Residual project proceeds from the related capital projects fund • Investment earnings • State or Federal grants • Transfers from other funds The following is a recap of the various Debt Service fund assets and related bond principal outstanding: Total remaining interest payments $ 1,680,434 It is important for the City to monitor its cash flows over the life of the debt to ensure sufficient resources for payment of principal and interest. The above are funded with annual tax levies. -10- People +Process Going a Beyondthe Numbers December 31, 2014 Final Cash Total Outstanding Maturity Debt Description Balances Assets Debt Date 309 G.O. Equipment Certificates $ 72,486 $ 72,486 $ 1,375,000 2017/2024 311 2012 Public Works Bond 73,294 73,294 4,000,000 2038 407 Facility Expansion 10,127 10,127 20,000 2015 Total $ 155,907 $ 155,907 $ 5,395,000 Total remaining interest payments $ 1,680,434 It is important for the City to monitor its cash flows over the life of the debt to ensure sufficient resources for payment of principal and interest. The above are funded with annual tax levies. -10- People +Process Going a Beyondthe Numbers $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Debt Service Scheduled Principal and Interest for the Next 10 Years 2015 2016 Capital Projects Funds 2017 2018 2019 2020 2021 2022 2023 2024 ■ Principal ■ Interest The capital projects funds account for the acquisition and construction of capital assets. A summary of each fund follows: Fund Balances December 31, Increase Fund 2014 2013 (Decrease) Major Tax Increment Financing Nonmaj or Park Capital Capital Equip -Cert Shannon Lane Hackamore Upgrade Wetland Restoration Asphalt Maintenance Police Capital County Road 19 Improvement Public Works Facility Hope Center Infrastructure Planning Subtotal Total $ 1,797,122 $ 1,764,180 $ 32,942 365,836 364,044 1,792 120,623 7,280 113,343 (20,348) (93,344) 72,996 285,171 - 285,171 100,060 - 100,060 71,595 71,548 47 - 10,292 (10,292) 10,046 (101,389) 111,435 87,651 230,898 (143,247) - (177,930) 177,930 1,020,634 311,399 709,235 $ 2,817,756 $ 2,075,579 $ 742,177 The Hope Center project was started in 2014 and although it has a zero fund balance at year end, project costs of $315,368 were incurred which were financed with a $225,000 community development block grant and the remaining with local contributions. In regards to the other capital project funds, the City evaluated the deficit balances and completed a transfer of $244,278 from the General fund to eliminate the $177,930 deficit in the Infrastructure Planning fund and $66,311 of the Shannon Lane deficit. Future special assessment collections will eliminate the remaining Shannon Lane deficit. If future deficits occur the City should evaluate and ensure its current position is consistent with the financing plans in place. Annual people review will ensure that deficits are addressed promptly. pr, -11- + OCess Going a Beyond the Numbers Enterprise Funds The Water and Sewer enterprise funds were created in 2013 and are accounted for in separate enterprise funds. Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The results of the operations and the breakdown of the cash balances for the past two years are as follows: Water Operations 2013 2014 Operating revenues $ - $ - Operating expenses (41,561) (300,717) Depreciation (15,613) (31,140) Operating loss (57,174) (331,857) Nonoperating expenses Interest expense Loss before contributions and transfers Contributed assets Capital contributions - connections and developer Transfers out Change in fund net position Cash and temporary investments Bonds and notes payable, net $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 S- $(200,000) Water Cash Balances 2013 ■ Unrestricted ■ Unspent bond proceeds Some of the significant highlights include: (17) (54,146) - (15,811) (57,191) (401,814) 934,201 - - 643,457 (125,887) $ 877,010 $ 115,756 $ (33,346) $ 1,448,283 $ - $ 2,080,728 2014 • Connection fees of $113,457 and developer contributions of $530,000 were received in 2014. • The G.O. Utility Revenue Bonds, Series 2014B were issued in 2014 with net proceeds of $1,726,396 received by the Water fund. • $1,044,378 of the total cash of $1,448,283 is restricted unspent bond proceeds. • There were no operating revenues in 2014 as the City plans to start the utility billing process in 2015. • A transfer out of $125,887 was completed to nonmajor governmental funds to reimburse for previous public works facility capital expenditures. People + Process As operations of the Water fund begins it will be important to monitor rates to ensure all operating, capital, and Going debt service expenses are covered. Bey0I1Cl the -12- Numbers Operating revenues Operating expenses Depreciation Operating loss Nonoperating expenses Loss before contributions and transfers Contributed assets Capital contributions - connections Transfers out Change in fund net position Cash and temporary investments Bonds payable, net $ 800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $(100,000) Sewer Operations Sewer Cash Balances $(18,427) 2013 ■Unrestricted ■ Unspent bond proceeds Some of the significant highlights include: 2013 2014 (26,732) (543) (17,606) (35,115) (44,338) (35,658) (9) (42,030) (44,347) (77,688) 1,053,460 - - 93,850 (125,887) $ 1,009,113 $ (109,725) $ (18,427) $ 744,980 $ - $ 1,375,227 2014 • Connection fees of $93,850 were received in 2014. • The G.O. Utility Revenue Bonds, Series 2014B were issued in 2014 with net proceeds of $1,333,288 received by the Sewer fund. • There were no operating revenues in 2014 as the City plans to start the utility billing process in 2015. • A transfer out of $125,887 was completed to nonmajor governmental funds to reimburse for previous public works facility capital expenditures. As operations of the Sewer fund begins it will be important to monitor rates to ensure all operating, capital, and debt service expenses are covered. -13- People +Process Going a Beyondthe Numbers Developer Agency Accounts In total, the City is maintaining $462,661 in cash in its developer funds. In addition to this balance the City is owed an additional $49,096 by accounts that are in deficit. The deficit balances are identified as follows: Accounts receivable Current Noncurrent Total $ 9,654 39,442 $ 49,096 Of the deficit balance noted above, $9,654 is current and related to timing of services provided and related escrow deposits near year end. City staff have appropriate procedures in place to monitor all current escrows and the balance, plus an additional deposit was received in early 2015. The remaining $39,442 relates to long outstanding developer receivables. We recommend the City transfer other City funds to close out the deficit. The deficits are further discussed as follows: Other Items Developer escrow account noncurrent deficit balances Condition: It was noted again during audit fieldwork that some developer escrow accounts had noncurrent deficit account balances. In total $39,442 was owed by two developer accounts. It is also worth noting that any service charge for deficit balances was not factored into the amount owed. Criteria: The City needs to have funds in amounts sufficient to cover the planning, legal, engineering and any other City cost that a developer incurs. Cause: It appears that reconciliations have been completed for current accounts, but collection efforts were not sufficient to eliminate the deficit noncurrent balance in 2014. Effect: The effect of allowing deficit balances means that shortfall needs to be funded with other resources. In the current situation other positive developer accounts are funding the deficits. Recommendation: Management has implemented informal policies to review escrow balances on a weekly basis with balances reported to the City Administrator and all consultants. This reporting ensures all interested parties are aware of balances on a timely and regular basis, deposits are received in advance of any activity, and that work stops prior to any additional accounts becoming negative. We recommend the City adopt a formal policy identifying procedures related to escrow accounts including service charges for any account that does become negative. The City should transfer funds to eliminate any uncollectable accounts. -14- People +Process Going a Beyondthe Numbers Ratio Analysis The following captures a few ratios from the City's financial statements that give some additional information for trend and peer group analysis. The peer group average is derived from information we have requested from the Office of the State Auditor for Cities of the 4th class which have populations between 2,500 and 10,000. In comparison to the peer group, it is important to remember the uniqueness of the City and it is really only comparable in size to the other Cities. The majority of these ratios facilitate the use of economic resources focus and accrual basis of accounting at the government -wide level. A combination of solvency (ability to pay its long -term obligations) and funding (comparison of financial amounts and economic indicators to measure changes in financial capacity over time) ratios are shown below. Ratio Calculation Source 2011 2012 2013 2014 Debt to assets Total liabilities /total assets Government -wide 19% 42% 43% 52% 33% 33% 32% N/A Debt per capita Bonded debt/population Government -wide $ 264 $ 1,023 $ 945 $ 1,618 $ 2,826 $ 2,626 $ 2,656 N/A Taxes per capita Tax revenues /population Government -wide $ 550 $ 566 $ 595 $ 581 $ 500 $ 480 $ 487 N/A Current expenditures per capita Governmental fund current Governmental funds $ 561 $ 562 $ 577 $ 608 expenditures /population $ 640 $ 649 $ 634 N/A Capital expenditures per capita Governmental fund capital Governmental funds $ 91 $ 502 $ 672 $ 212 expenditures /population $ 229 $ 298 $ 294 N/A Capital assets % left to Net capital assets/ Government -wide 70% 74% 74 % 73 % depreciate - Governmental gross capital assets 64% 65% 64% N/A Capital assets % left to Net capital assets/ Government -wide n/a n/a 98% 98% depreciate - Business -type gross capital assets 65% 63% 63% N/A Represents the City of Corcoran Represents Peer Group Average Debt -to- Assets Leverage Ratio (Solvency Ratio) The debt -to- assets leverage ratio is a comparison of a City's total liabilities to its total assets or the percentage of total assets that are provided by creditors. It indicates the degree to which the City's assets are financed through borrowings and other long -term obligations (i.e. a ratio of .50 would indicate half of the City's assets are financed through outstanding debt). Bonded Debt per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total bonded debt by the population of the City and represents the amount of bonded debt obligation for each citizen of the City at the end of the year. The higher the amount, the more resources are needed in the future to retire these obligations through taxes, assessments or user fees. Taxes per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total tax revenues by the population of the City and represents the amount of taxes for each citizen of the City for the year. The higher this amount is, the more reliant the City is on taxes to fund its operations. Current Expenditures per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total current governmental expenditures by the population of the City and represents the amount of governmental expenditure for each citizen of the City during the year. Since this people is generally based on ongoing expenditures, we would expect consistent annual per capita results. -i- W oCeSS Going a Beyond the -15- Numbers Capital Expenditures per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total governmental capital outlay expenditures by the population of the City and represents the amount of capital expenditure for each citizen of the City during the year. Since projects are not always recurring, the per capita amount will fluctuate from year to year. Capital Assets Percentage (Common -size Ratio) This percentage represents the percent of governmental or business -type capital assets that are left to be depreciated. The lower this percentage, the older the City's capital assets are and may need major repairs or replacements in the near future. A higher percentage may indicate newer assets being constructed or purchased and may coincide with higher debt ratios or bonded debt per capita Financial Management Plan Analysis Comparison of Actual Results to the City's Multi -Year Financial Management Plan Report (Unaudited) December 31, 2014 Fund Balances/Net Position City Multi -Year Financial Management Actual Plan Report Variance Governmental Funds - Fund Balances General Fund $ 1,117,761 $ 1,093,096 $ 24,665 Tax Increment Financing 1,797,122 - 1,797,122 Debt Service Funds 155,907 53,156 102,751 Special Revenue Funds 37,741 66,737 (28,996) Capital Project Funds 1,020,634 509,384 511,250 Total governmental 4,129,165 1,722,373 2,406,792 Proprietary Funds - Net Position Water and Sewer Funds 1,892,154 147,488 1,744,666 Total $ 6,021,319 $ 1,869,861 $ 4,151,458 Cash Balances City Multi -Year Financial Management Actual Plan Report Variance Governmental Funds General Fund $ 1,203,971 $ 848,534 $ 355,437 Tax Increment Financing 1,806,477 - 1,806,477 Debt Service Funds 155,907 53,156 102,751 Special Revenue Funds 38,304 66,701 (28,397) Capital Project Funds 839,690 815,640 24,050 Total governmental 4,044,349 1,784,031 2,260,318 Proprietary Funds Water and Sewer Funds 2,193,263 147,488 2,045,775 Total $ 6,237,612 $ 1,931,519 $ 4,306,093 During 2012 the City created and approved a multi -year financial management plan report adopted by the City Council on September 13, 2012. At the request of management we have compared actual results to estimated results from the plan. Assumptions and results will always change, as noted by the variances above. We recommend the City People analyze the reasons for the variances and factor into the updating of the plan. Updating the plan on an annual basis and using during the budget process will benefit the City in making financial decisions for the future. +process. Going Beyondthe -16- Numbers Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements. (t) GASB Statement No. 68 - The Accounting and Financial Reporting of Pensions- an Amendment of GASB Statement No. 27 The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regard to providing decision - useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension plans administered as trusts or equivalent arrangements (hereafter jointly referred to as trusts) that meet certain criteria. The requirements of Statements 27 and 50 remain applicable for pensions that are not covered by the scope of this Statement. This Statement is effective for fiscal years beginning after June 15, 2014. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve the decision - usefulness of information in employer and governmental nonemployer contributing entity financial reports and will enhance its value for assessing accountability and interperiod equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense. Decision - usefulness and accountability also will be enhanced through new note disclosures and required supplementary information. GASB Statement No. 71 - Pension Transition for Contributions Made Subsequent to the Measure Date - an Amendment of GASB Statement No. 68 Summary The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or nonemployer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. Statement No. 68 requires a state or local government employer (or nonemployer contributing entity in a special funding situation) to recognize a net pension liability measured as of a date (the measurement date) no earlier than the end of its prior fiscal year. If a state or local government employer or nonemployer contributing entity makes a contribution to a defined benefit pension plan between the measurement date of the reported net pension liability and the end of the government's reporting period, Statement No. 68 requires that the government recognize its contribution as a deferred outflow of resources. In addition, Statement No. 68 requires recognition of deferred outflows of resources and deferred inflows of resources for changes in the net pension liability of a state or local government employer or nonemployer contributing entity that arise from other types of events. At transition to Statement No. 68, if it is not practical for an employer or nonemployer contributing entity to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions, paragraph 137 of Statement No. 68 required that beginning balances for deferred outflows of resources and deferred inflows of resources not be reported. Consequently, if it is not practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions, contributions made after the measurement date of the beginning net pension liability could not have been reported as deferred outflows of resources at transition. This could have resulted in a significant understatement of an employer or nonemployer contributing entity's beginning net position and expense in the initial period of implementation. This Statement amends paragraph 137 of Statement No. 68 to require that, at transition, a government recognize a beginning deferred outflow of resources for its pension contributions, if any, made subsequent to the measurement date of the beginning net pension liability. Statement No. 68, as amended, continues to require that beginning balances for other deferred outflows of resources and deferred inflows of resources related to pensions be reported at transition only if it is practical to determine all such amounts. People + Wocess The provisions of this Statement are required to be applied simultaneously with the provisions of Statement 68. r `iO� No. Beyo Clthe -17- Numbers Future Accounting Standard Changes - Continued How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will eliminate the source of a potential significant understatement of restated beginning net position and expense in the first year of implementation of Statement No. 68 in the accrual -basis financial statements of employers and nonemployer contributing entities. This benefit will be achieved without the imposition of significant additional costs. GASB Statement No. 72 - Fair Value Measurement and Application Summary This Statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement provides guidance for determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. Fair Value Measurement Fair value is described as an exit price. Fair value measurements assume a transaction takes place in a government's principal market, or a government's most advantageous market in the absence of a principal market. The fair value also should be measured assuming that general market participants would act in their economic best interest. Fair value should not be adjusted for transaction costs. To determine a fair value measurement, a government should consider the unit of account of the asset or liability. The unit of account refers to the level at which an asset or a liability is aggregated or disaggregated for measurement, recognition, or disclosure purposes as provided by the accounting standards. For example, the unit of account for investments held in a brokerage account is each individual security, whereas the unit of account for an investment in a mutual fund is each share in the mutual fund held by a government. This Statement requires a government to use valuation techniques that are appropriate under the circumstances and for which sufficient data are available to measure fair value. The techniques should be consistent with one or more of the following approaches: the market approach, the cost approach, or the income approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities, or a group of assets and liabilities. The cost approach reflects the amount that would be required to replace the present service capacity of an asset. The income approach converts future amounts (such as cash flows or income and expenses) to a single current (discounted) amount. Valuation techniques should be applied consistently, though a change may be appropriate in certain circumstances. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. This Statement establishes a hierarchy of inputs to valuation techniques used to measure fair value. That hierarchy has three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs — other than quoted prices — included within Level 1 that are observable for the asset or liability, either directly or indirectly. Finally, Level 3 inputs are unobservable inputs, such as management's assumption of the default rate among underlying mortgages of a mortgage- backed security. A fair value measurement takes into account the highest and best use for a nonfinancial asset. A fair value measurement of a liability assumes that the liability would be transferred to a market participant and not settled with the counterparty. In the absence of a quoted price for the transfer of an identical or similar liability and if another party holds an identical item as an asset, a government should be able to use the fair value of that asset to measure the fair value of the liability. This Statement requires additional analysis of fair value if the volume or level of activity for an asset or liability has significantly decreased. It also requires identification of transactions that are not orderly. Quoted prices provided by third parties are permitted, as long as a government determines that those quoted prices are developed in accordance with the provisions of this Statement. -18- People +Process Going a Beyondthe Numbers Future Accounting Standard Changes - Continued Fair Value Application This Statement generally requires investments to be measured at fair value. An investment is defined as a security or other asset that (a) a government holds primarily for the purpose of income or profit and (b) has a present service capacity based solely on its ability to generate cash or to be sold to generate cash. Investments not measured at fair value continue to include, for example, money market investments, 2a7 -like external investment pools, investments in life insurance contracts, common stock meeting the criteria for applying the equity method, unallocated insurance contracts, and synthetic guaranteed investment contracts. A government is permitted in certain circumstances to establish the fair value of an investment that does not have a readily determinable fair value by using the net asset value per share (or its equivalent) of the investment. This Statement requires measurement at acquisition value (an entry price) for donated capital assets, donated works of art, historical treasures, and similar assets and capital assets received in a service concession arrangement. These assets were previously required to be measured at fair value. Fair Value Disclosures This Statement requires disclosures to be made about fair value measurements, the level of fair value hierarchy, and valuation techniques. Governments should organize these disclosures by type of asset or liability reported at fair value. It also requires additional disclosures regarding investments in certain entities that calculate net asset value per share (or its equivalent). The requirements of this Statement are effective for financial statements for periods beginning after June 15, 2015. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will enhance comparability of financial statements among governments by requiring measurement of certain assets and liabilities at fair value using a consistent and more detailed definition of fair value and accepted valuation techniques. This Statement also will enhance fair value application guidance and related disclosures in order to provide information to financial statement users about the impact of fair value measurements on a government's financial position. a) Note. From GASB Pronouncements Summaries. Copyright 2014 by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, USA, and is reproduced with permission. This communication is intended solely for the information and use of the City Council, management, others within the City and the Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. The comments and recommendation in this 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 opportunity to be of service and for the courtesy and cooperation extended to us by your staff. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota April 24, 2015 -19- People +Process Going a Beyondthe Numbers City of Corcoran Corcoran, Minnesota For the Year Ended December 31, 2014 ABDO r EICK & I � M 1 I LJ UP Certified Public Accountants & Consultants THIS PAGE IS LEFT BLANK INTENTIONALLY CITY OF CORCORAN CORCORAN, MINNESOTA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2014 THIS PAGE IS LEFT BLANK INTENTIONALLY CITY OF CORCORAN, MINNESOTA ANNUAL FINANCIAL REPORT TABLE OF CONTENTS FOR THE YEAR ENDED DECEMBER 31, 2014 INTRODUCTORY SECTION Elected and Appointed Officials FINANCIAL SECTION Independent Auditor's Report Management's Discussion and Analysis Page 9 13 Basic Financial Statements Government -wide Financial Statements Statement of Net Position 25 Statement of Activities 26 Fund Financial Statements Governmental Funds 66 Balance Sheet 30 Reconciliation of the Balance Sheet to the Statement of Net Position 31 Statement of Revenues, Expenditures and Changes in Fund Balances 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in 71 Fund Balances to the Statement of Activities 33 General Fund 72 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 34 Proprietary Funds Statement of Net Position 35 Statement of Revenues, Expenditures and Changes in Net Position 36 Statement of Cash Flows 37 Fiduciary Funds Statement of Fiduciary Net Position 38 Notes to the Financial Statements 39 Required Supplementary Information Schedule of Funding Progress for the Postemployment Benefit Plan 62 Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 65 Nonmajor Special Revenue Funds Combining Balance Sheet 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 68 Nonmajor Debt Service Funds Combining Balance Sheet 70 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 71 Nonmajor Capital Project Funds Combining Balance Sheet 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 74 General Fund Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 76 Fiduciary Funds Combining Schedule of Net Position 80 Summary Financial Report Revenues and Expenditures for General Operations - Governmental Funds 82 OTHER REPORTS Independent Auditor's Report on Minnesota Legal Compliance -1- 85 THIS PAGE IS LEFT BLANK INTENTIONALLY -2- INTRODUCTORY SECTION CITY OF CORCORAN CORCORAN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -3- THIS PAGE IS LEFT BLANK INTENTIONALLY -4- Name Ken Guenthner Rich Asleson Tom Cossette Pat Hank Ron Thomas Brad Martens Jeanie Heinecke CITY OF CORCORAN, MINNESOTA ELECTED AND APPOINTED OFFICIALS FOR THE YEAR ENDED DECEMBER 31, 2014 ELECTED Term Expires 12/31/14 12/31/14 12/31/14 12/31/16 12/31/16 APPOINTED Irbil Title Mayor Council Member Council Member Council Member Council Member City Administrator City Clerk THIS PAGE IS LEFT BLANK INTENTIONALLY IM FINANCIAL SECTION CITY OF CORCORAN CORCORAN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 11re THIS PAGE IS LEFT BLANK INTENTIONALLY -8- k A B D 0 w.� EICK & ME 1 E W LLP Certified Public Accountants & Consultants INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Council City of Corcoran, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Corcoran, Minnesota (the City), as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2014, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. 5201 Eden Avenue, Suite 250 Edina, MN 55436 _ 952.835.9090 1 Fax 952.835.3261 -9 THIS PAGE IS LEFT BLANK INTENTIONALLY -10- Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis starting on page 13 and the Schedule of Funding Progress for the Postemployment Benefit Plan on page 62 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements as a whole. The introductory section and combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota April 24, 2015 -11- People +Process Going a Beyondthe Numbers THIS PAGE IS LEFT BLANK INTENTIONALLY -12- Management's Discussion and Analysis As management of the City of Corcoran, Minnesota (the City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2014. Financial Highlights • The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $9,486,577 (net position). Of this amount, $1,248,351 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors. • The City's total net position increased by $942,816. Governmental activities increased by $936,785 and business -type activities increased $6,031. The increase in governmental activities is primarily the result of significant capital grants and contributions as well as a transfer in from business -type activities. • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $4,129,165 an increase of $647,014 in comparison with the prior year. The increase resulted from developer contributions and a transfer in from enterprise funds. • At the end of the current fiscal year, unassigned fund balance for the General fund was $1,085,355 or 32.3 percent of total General fund expenditures and transfer out. • The City's total long -term liabilities increased $228,000 during the current fiscal year as a result of the issuance of $3,130,000 of the G.O. Utility Revenue Bonds, Series 2014B and the issuance of $442,000 of the G.O. Equipment Certificates, Series 2014A. -13- Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of combining and individual fund financial statements and schedules that further explains and supports the information in the financial statements. Figure 1 shows how the required parts of this annual report are arranged and relate to one another. In addition to these required elements, we have included a section with combining and individual fund financial statements and schedules that provide details about nonmajor governmental funds, which are added together and presented in single columns in the basic financial statements Figure 1 Required Components of the City's Annual Financial Report ............................................. ............................... Management's Basic Required Discussion and Financial Supplementary Analysis Statements Information Government- Fund Notes to the wide Financial Financial Financial Statements Statements Statements Summary Detail -14- Figure 2 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management's discussion and analysis explains the structure and contents of each of the statements. Figure 2 Major features of the Government -wide and Fund Financial Statements -15- Fund Financial Statements Government -wide Governmental Funds Proprietary Funds Fiduciary Funds Statements Scope Entire City The activities of the City that Activities the City Instances in which the government (except are not proprietary or fiduciary, operates similar to City administers fiduciary funds) and such as police, fire and parks private businesses, such resources on behalf of the City's component as the water and sewer someone else, such as units system developers Required • Statement of Net • Balance Sheet • Statement of Net • Statement of financial Position • Statement of Revenues, Position fiduciary net statements • Statement of Expenditures, and Changes • Statement of position Activities in Fund Balances Revenues, Expenses and Changes in Net Position • Statement of Cash Flows Accounting Accrual accounting Modified accrual accounting Accrual accounting and Accrual accounting Basis and and economic and current financial resources economic resources and economic measurement resources focus focus focus resources focus focus Type of All assets and Only assets expected to be used All assets and liabilities, All assets and asset /liability liabilities, both up and liabilities that come due both financial and liabilities, both short- information financial and capital, during the year or soon capital, and short-term term and long -term; and short-term and thereafter; no capital assets and long -term fund do not currently long -term included contain capital assets, although they can Type of All deferred Only deferred outflows of All deferred All deferred deferred outflows /inflows of resources expected to be used outflows /inflows of outflows /inflows of outflows /infl resources, regardless of up and deferred inflows of resources, regardless of resources, regardless of ows of when cash is received resources that come due during when cash is received when cash is received resources or paid the year or soon thereafter; no or paid. or paid information capital assets included. Type of in All revenues and Revenues for which cash is All revenues and All additions and flow /out flow expenses during year, received during or soon after expenses during the deductions during the information regardless of when the end of the year; year, regardless of when year, regardless of cash is received or paid expenditures when goods or cash is received or paid when cash is received services have been received and or paid payment is due during the year or soon thereafter -15- Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private- sector business. The statement of net position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cashflows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works, culture and recreation, and interest on long -term debt. The business -type activities of the City include water and sewer utilities. The government -wide financial statements include not only the City itself (known as the primary government), but also a legally separate Economic Development Authority for which the City is financially accountable. The Economic Development Authority, although legally separate, functions for all practical purposes as a department of the City, and therefore has been included as part of the primary government. The government -wide financial statements start on page 25 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact by the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 22 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General fund and Tax Increment Financing fund, both of which are considered to be major funds. Data from the other 20 governmental funds are combined into a single, aggregated presentation identified as other nonmajor governmental funds. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements or schedules elsewhere in this report. The City adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided for the General fund to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 30 of this report. Proprietary funds. The City maintains one type of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its Water and Sewer funds. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary funds financial statements provide separate information for each of the enterprise funds which are considered to be major funds of the City. The basic proprietary funds financial statements start on page 35 of this report. -16- Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on page 38 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements start on page 39 of this report. Other information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented following the notes to the financial statements. Combining and individual fund statements and schedules start on page 64 of this report. Government -wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $9,486,577 at the close of the most recent fiscal year. The largest portion of the City's net position (39.6 percent) reflects its investment in capital assets (e.g., land, buildings, infrastructure, machinery and equipment), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Corcoran's Summary of Net Position Liabilities Noncurrent liabilities outstanding Governmental Activities Business -type Activities 247,222 3,455,955 Increase 3,455,955 Increase 396,744 2014 2013 (Decrease) 2014 2013 (Decrease) Assets Total liabilities 6,166,581 6,355,157 (188,576) Current and other assets $ 4,713,275 $ 4,538,300 $ 174,975 $ 2,193,263 $ (51,773) $ 2,245,036 Capital assets 9,047,729 8,474,495 573,234 3,936,577 1,954,442 1,982,135 Total assets 13,761,004 13,012,795 748,209 6,129,840 1,902,669 4,227,171 Liabilities Noncurrent liabilities outstanding 5,769,837 5,522,615 247,222 3,455,955 - 3,455,955 Other liabilities 396,744 832,542 (435,798) 781,731 16,546 765,185 Total liabilities 6,166,581 6,355,157 (188,576) 4,237,686 16,546 4,221,140 Net position Net investment in capital assets 3,758,344 3,538,393 219,951 1,901,904 1,954,442 (52,538) Restricted 2,577,978 2,147,775 430,203 - - - Unrestricted 1,258,101 971,470 286,631 (9,750) (68,319) 58,569 Total net position $ 7,594,423 $ 6,657,638 $ 936,785 $ 1,892,154 $ 1,886,123 $ 6,031 An additional portion of the City's net position (27.2 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($1,248,351) may be used to meet the City's ongoing obligations to citizens and creditors. -17- Governmental and Business -type activities. Governmental activities decreased the City's net position by $936,785 and business- type activities increased the City's net position by $6,031. Significant changes from prior year are noted below: Revenues Program revenues Charges for services Operating grants and contributions Capital grants and contributions General revenues Property taxes Othertaxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets City of Corcoran's Changes in Net Position 2014 Governmental Activities Increase 2013 (Decrease) $ 371,918 $ 453,349 $ (81,431) $ 356,796 366,708 (9,912) 846,896 68,075 778,821 3,137,688 2,924,902 212,786 40,321 327,270 (286,949) 11,405 11,028 377 2,148 8,897 (6,749) 7,320 3,768 3,552 Business -type Activities Increase 2014 2013 (Decrease) 737,307 - 737,307 4,698 (26) 4,724 Total revenues 4,774,492 4,163,997 610,495 742,005 (26) 742,031 6,031 Expenses Net position, January 1 6,657,638 8,312,089 General government 787,804 799,786 (11,982) - - - Public safety 1,488,359 1,399,599 88,760 - - - Public works 1,549,214 1,385,771 163,443 - - - Culture and recreation 109,053 101,282 7,771 - - - Interest on long -term debt 155,051 144,349 10,702 - - - Water - - - 404,591 57,174 347,417 Sewer - - - 79,609 44,338 35,271 Total expenses Change in net position before transfers Transfers Transfer of capital assets 4,089,481 3,830,787 258,694 484,200 101,512 382,688 685,011 333,210 351,801 257,805 (101,538) 359,343 251,774 - 251,774 (251,774) - (251,774) (1,987,661) 1,987,661 - 1,987,661 (1,987,661) Change in net position 936,785 (1,654,451) 2,591,236 6,031 1,886,123 (1,880,092) Net position, January 1 6,657,638 8,312,089 (1,654,451) 1,886,123 - 1,886,123 Net position, December 31 $ 7,594,423 $ 6,657,638 $ 936,785 $ 1,892,154 $ 1,886,123 $ 6,031 Property taxes represent 65.9 percent of total revenues in 2014 in governmental activities. Significant changes in revenues included: • Capital grants and contributions increased $778,821 from prior year. The increase relates primarily to developer contributions, reimbursements, and grant revenues related to the Hope Center project. • Property taxes increased in 2014 as a result of an increase in the General fund levy. Significant changes in expenses included: • Public works expense increased $163,443 due to the completion of sealcoating and other repair and maintenance projects. • Public safety expenditures increased due to increased building inspections expenses. -18- The following graph depicts various governmental activities and shows the revenue and expenses directly related to those activities. $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Expenses and Program Revenue - Governmental Activities General government Public safety Public works Culture and recreation Interest on long -term debt Capital grant, contributio 17.74% Operating grant contribution 7.47% Charges for sen 7.80% Gain on sale of assets 0.15% ■ Expenses ■ Program Revenues Revenues by Source - Governmental Activities Grants and contributions unrestricted 0 ?40i. 0.04% 0.84% -19- ,perty taxes 65.72% Business -type activities. Business -type activities increased the City's net position by $6,031. Financial Analysis of the City's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental funds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $4,129,165, an increase of $647,014 in comparison with the prior year. Approximately 25.8 percent of this total amount ($1,064,021) constitutes unassigned fund balance, which is available for spending at the City's discretion. The remainder of fund balance ($3,065,144) is not available for new spending because it is either 1) nonspendable ($32,406), 2) restricted ($2,738,161), 3) committed ($5,045), or 4) assigned ($289,532). For further classification refer to Note 3E on page 56 of this report. Fund Balance December 31, Increase Major Funds 2014 2013 (Decrease) General $ 1,117,761 $ 1,232,663 $ (114,902) The General fund balance decreased $114,902 during the year. The decrease was a result of a transfer out of $244,278 to write off the Infrastructure planning interfund loan ($177,967) and for partial write off of the Shannon Lane interf ind loan ($66,311). Without this transfer out, the General fund balance would have increased $129,376. Tax In crem en t Fin an cing $ 1,797,122 $ 1,764,180 $ 32,942 The Tax Increment Financing fund balance increased $32,942 during the year due to reimbursements for previous project costs and expenses related to planning for the expected downtown improvements. General Fund Budgetary Highlights The City's General fund was not amended during the year. Revenues exceeded budget by $157,285. The largest positive variances included licenses and permits ($64,157) and taxes ($49,785). Expenditures had a negative budget variance of $29,259, primarily due to the negative budget variance of $33,322 in public safety, related to increased building inspection expenses. -20- Capital Asset and Debt Administration Capital assets. The City's investment in capital assets for its governmental type activities as of December 31, 2014, amounts to $9,047,729 (net of accumulated depreciation). This investment in capital assets includes land, buildings, infrastructure, machinery and equipment, park facilities, roads, and highways. The total increase in the City's investment in capital assets for the current fiscal year was 7 percent. Major capital events during the current fiscal year included the following: • SE District Water and Sewer Improvement project in progress • Completion of the Public Works Facility • Hope Center project in progress • Purchase of two 2014 Ford police interceptor vehicles 2014 City of Corcoran's Capital Assets (net of depreciation) Governmental Activities 2013 Increase (Decrease) Business -type Activities Increase 2014 2013 (Decrease) Land $ 1,410,197 $ 1,410,197 $ - $ 361,762 $ - $ 361,762 Construction in progress 315,368 3,439,005 (3,123,637) 1,686,628 - 1,686,628 Buildings 4,667,608 967,095 3,700,513 - - - Equipment 1,112,389 1,051,694 60,695 - - - Infrastructure 1,542,167 1,606,504 (64,337) 1,888,187 1,954,442 (66,255) Total $ 9,047,729 $ 8,474,495 $ 573,234 $ 3,936,577 $ 1,954,442 $ 1,982,135 Major capital asset events during the current fiscal year included the following: Equipment 8.6% Capital Assets Construction in Land progress 13.7% 15.4% 35.9% Additional information on the City's capital assets can be found in Note 3B starting on page 49 of this report. -21- Infrastructure 26.4% Long -term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $5,395,000. Of this amount, is general obligation improvement bonds, $5,375,000 is general obligation bonds, and $20,000 is lease revenue bonds for municipal facilities. The following table highlights the total debt of the City. City of Corcoran's Outstanding Debt The City's total debt increased $3,703,177 during the current fiscal year. The increase was due to the issuance of the 2014A and 2014B bonds. Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of taxable property within the City. Net debt is debt payable solely from ad valorem taxes. The current debt limitation for the City is $18,598,113. The City has $5,375,000 of debt subject to this limit. Additional information on the City's long -term debt can be found in Note 31) starting on page 52 of this report. Economic Factors and Next Year's Budgets and Rates The City's property tax rate increased from 46.11 percent in 2013 to 49.743 in 2014. The 2015 tax rate is 45.311. The City continues to work towards increasing its unrestricted fund balance and remove unfunded liabilities. Property values continue to increase around the City and a new residential development is constructing homes in the first of nine phases. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Administrator, City of Corcoran 8200 County Road 116, Corcoran, MN 55340. -22- Governmental Activities Business -type Activities Increase Increase 2014 2013 (Decrease) 2014 2013 (Decrease) G.O. bonds payable $ 5,375,000 $ 5,108,000 $ 267,000 $ - $ - $ - Lease revenue bonds payable 20,000 59,000 (39,000) - - - Revenue bonds payable - - - 3,130,000 - 3,130,000 Unamortized premium on bonds - - - 25,955 - 25,955 Notes payable - - - 300,000 - 300,000 Compensated absences payable 211,259 218,004 (6,745) - - - Other postemployment benefits payable 163,578 137,611 25,967 - - - Total $ 5,769,837 $ 5,522,615 $ 247,222 $ 3,455,955 $ $ 3,455,955 The City's total debt increased $3,703,177 during the current fiscal year. The increase was due to the issuance of the 2014A and 2014B bonds. Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of taxable property within the City. Net debt is debt payable solely from ad valorem taxes. The current debt limitation for the City is $18,598,113. The City has $5,375,000 of debt subject to this limit. Additional information on the City's long -term debt can be found in Note 31) starting on page 52 of this report. Economic Factors and Next Year's Budgets and Rates The City's property tax rate increased from 46.11 percent in 2013 to 49.743 in 2014. The 2015 tax rate is 45.311. The City continues to work towards increasing its unrestricted fund balance and remove unfunded liabilities. Property values continue to increase around the City and a new residential development is constructing homes in the first of nine phases. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Administrator, City of Corcoran 8200 County Road 116, Corcoran, MN 55340. -22- GOVERNMENT -WIDE FINANCIAL STATEMENTS CITY OF CORCORAN CORCORAN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -23- THIS PAGE IS LEFT BLANK INTENTIONALLY -24- CITY OF CORCORAN, MINNESOTA STATEMENT OF NET POSITION DECEMBER 31, 2014 ASSETS Cash and temporary investments Receivables Accounts Interest Delinquent taxes Special assessments Prepaid items Due from other governments Capital assets Nondepreciable Depreciable, net of accumulated depreciation TOTAL ASSETS LIABILITIES Accounts payable Due to other governments Accrued salaries payable Accrued interest payable Noncurrent liabilities Due within one year Due in more than one year TOTAL LIABILITIES NET POSITION Net investment in capital assets Restricted for Tax increment financing Debt service Park dedication fees Police expenditures Capital outlay Unrestricted TOTAL NET POSITION Governmental Business -type Activities Activities Total $ 4,044,349 $ 2,193,263 $ 6,237,612 130,689 - 130,689 1,558 - 1,558 68,542 - 68,542 173,392 - 173,392 5,373 - 5,373 289,372 - 289,372 1,725,565 2,048,390 3,773,955 7,322,164 1,888,187 9,210,351 13,761,004 6,129,840 19,890,844 295,154 742,877 1,038,031 3,095 - 3,095 43,927 - 43,927 54,568 38,854 93,422 371,954 - 371,954 5,397,883 3,455,955 8,853,838 6,166,581 4,237,686 10,404,267 3,758,344 1,901,904 5,660,248 1,797,122 - 1,797,122 101,339 - 101,339 270,590 - 270,590 16,008 - 16,008 392,919 - 392,919 1,258,101 (9,750) 1,248,351 $ 7,594,423 $ 1,892,154 $ 9,486,577 The notes to the financial statements are an integral part of this statement. -25- CITY OF CORCORAN, MINNESOTA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2014 Business -type activities Water 404,591 - - 643,457 Program Revenues 79,609 - - 93,850 Total business -type activities 484,200 - - Operating Capital $ 4,573,681 $ 371,918 $ 356,796 $ 1,584,203 Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental activities Property taxes, levied for debt service General government $ 787,804 $ 62,309 $ 14,854 $ - Public safety 1,488,359 180,787 79,204 - Public works 1,549,214 127,507 256,738 487,168 Culture and recreation 109,053 1,315 6,000 359,728 Interest on long term debt 155,051 - - - Total governmental activities 4,089,481 371,918 356,796 846,896 Business -type activities Water 404,591 - - 643,457 Sewer 79,609 - - 93,850 Total business -type activities 484,200 - - 737,307 Total $ 4,573,681 $ 371,918 $ 356,796 $ 1,584,203 General revenues Taxes Property taxes, levied for general purposes Property taxes, levied for debt service Franchise fees Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets Transfers Total general revenues and transfers Change in net position Net position, January 1 Net position, December 31 The notes to the financial statements are an integral part of this statement. -26- Net Revenues (Expenses) and Changes in Net Position Governmental Business -type Activities Activities Total $ (710,641) (1,228,368) (677,801) 257,990 (155,051) (2,513,871) $ (710,641) (1,228,368) (677, 801) 257,990 (155,051) (2,513,871) 238,866 238,866 14,241 14,241 253,107 253,107 (2,513,871) 253,107 (2,260,764) 2,774,268 - 2,774,268 363,420 - 363,420 40,321 - 40,321 11,405 - 11,405 2,148 4,698 6,846 7,320 - 7,320 251,774 (251,774) - 3,450,656 (247,076) 3,203,580 936,785 6,031 942,816 6,657,638 1,886,123 8,543,761 $ 7,594,423 $ 1,892,154 $ 9,486,577 -27- THIS PAGE IS LEFT BLANK INTENTIONALLY -28- FUND FINANCIAL STATEMENTS CITY OF CORCORAN CORCORAN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -29- CITY OF CORCORAN, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2014 ASSETS Cash and temporary investments Receivables Accounts Interest Delinquent taxes Special assessments Prepaid items Due from other governments Due from other funds TOTAL ASSETS LIABILITIES Accounts payable Due to other governments Accrued salaries payable Due to other funds TOTAL LIABILITIES TOTAL DEFERRED INFLOWS OF RESOURCES Unavailable revenues - taxes Unavailable revenues - special assessments TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned TOTAL FUND BALANCES 100 401 Other Total Tax Increment Governmental Governmental General Financing Funds Funds $ 1,203,971 $ 1,806,477 $ 1,033,901 $ 4,044,349 40,321 - 90,368 130,689 1,558 - - 1,558 68,542 - - 68,542 149,475 - 23,917 173,392 5,373 - - 5,373 64,372 - 225,000 289,372 27,033 - - 27,033 $ 1,560,645 $ 1,806,477 $ 1,373,186 $ 4,740,308 $ 180,940 $ 6,260 $ 107,954 $ 295,154 - 3,095 - 3,095 43,927 - - 43,927 - - 27,033 27,033 224,867 9,355 134,987 369,209 68,542 - - 68,542 149,475 - 23,917 173,392 218,017 - 23,917 241,934 32,406 - - 32,406 - 1,797,122 941,039 2,738,161 - - 5,045 5,045 - - 289,532 289,532 1,085,355 - (21,334) 1,064,021 1,117,761 1,797,122 1,214,282 4,129,165 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 1,560,645 $ 1,806,477 $ 1,373,186 $ 4,740,308 The notes to the financial statements are an integral part of this statement. -30- CITY OF CORCORAN, MINNESOTA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS DECEMBER 31, 2014 Amounts reported for governmental activities in the statement of net position are different because Total fund balances - governmental $ 4,129,165 Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets 12,356,055 Less: accumulated depreciation (3,308,326) Long -term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the fund statements. Long -term liabilities at year -end consist of G.O. bonds payable (5,375,000) Leases revenue bonds payable (20,000) Compensated absences payable (211,259) Other postemployment benefits payable (163,578) Some receivables are not available soon enough to pay for current period expenditures, and, therefore, are unavailable in the funds. Delinquent taxes receivable 68,542 Special assessments receivable 173,392 Governmental funds do not report a liability for accrued interest until due and payable. (54,568) Total net position - governmental activities $ 7,594,423 The notes to the financial statements are an integral part of this statement. -31- CITY OF CORCORAN, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS FOR THE YEAR ENDED DECEMBER 31, 2014 REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous TOTAL REVENUES EXPENDITURES Current General government Public safety Public works Culture and recreation Capital outlay General government Public safety Public works Culture and recreation Debt service Principal Interest and other charges Bond issuance costs TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Bond issued Sale of capital assets TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES 100 401 Tax Increment General Financing Other Total Governmental Governmental Funds Funds $ 2,816,660 $ - $ 363,420 $ 3,180,080 132,407 442,000 - 132,407 272,939 104,181 336,425 713,545 163,830 - 391,640 555,470 42,278 - 42,278 20,295 - 6,715 27,010 431 1,220 728 2,379 36,733 - 108,384 145,117 3,485,573 105,401 1,207,312 4,798,286 724,271 - - 724,271 1,360,744 - 16,859 1,377,603 1,168,598 - - 1,168,598 55,494 - - 55,494 3,451 - 1,963 5,414 - - 98,787 98,787 6,337 72,459 623,259 702,055 37,302 - 318,918 356,220 - - 214,000 214,000 - - 132,114 132,114 - - 17,810 17,810 3,356,197 72,459 1,423,710 4,852,366 129,376 32,942 (216,398) (54,080) - - 496,052 496,052 (244,278) - - (244,278) - - 442,000 442,000 - - 7,320 7,320 (244,278) - 945,372 701,094 (114,902) 32,942 728,974 647,014 FUND BALANCES, JANUARY 1 1,232,663 1,764,180 485,308 3,482,151 FUND BALANCES, DECEMBER 31 $ 1,117,761 $ 1,797,122 $ 1,214,282 $ 4,129,165 The notes to the financial statements are an integral part of this statement. -32- CITY OF CORCORAN, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2014 Amounts reported for governmental activities in the statement of activities are different because Total net change in fund balances - governmental funds $ 647,014 Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlays 1,029,015 Depreciation expense (455,781) The issuance of long -term debt provides current financial resources to governmental funds, while the repayment of the principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts amortized in the statement of activities. Bonds issued (442,000) Principal repayments 214,000 Interest on long -term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. (5,127) Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting, they cannot be recognized until they are available to liquidate liabilities of the current period. Property taxes (2,071) Special assessments (29,043) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences 6,745 Other postemployment benefits costs (25,967) Change in net position - governmental activities $ 936,785 The notes to the financial statements are an integral part of this statement. -33- CITY OF CORCORAN, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2014 REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous TOTAL REVENUES EXPENDITURES Current General government Public safety Public works Culture and recreation Capital outlay General government Public works Culture and recreation TOTAL EXPENDITURES EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING USES Transfers out NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget $ 2,766,875 $ 2,766,875 $ 2,816,660 $ 49,785 68,250 68,250 132,407 64,157 257,610 257,610 272,939 15,329 141,205 141,205 163,830 22,625 75,000 75,000 42,278 (32,722) - - 20,295 20,295 3,000 3,000 431 (2,569) 16,348 16,348 36,733 20,385 3,328,288 3,328,288 3,485,573 157,285 722,090 722,090 724,271 (2,181) 1,327,422 1,327,422 1,360,744 (33,322) 1,169,059 1,169,059 1,168,598 461 66,565 66,565 55,494 11,071 - - 3,451 (3,451) 4,500 4,500 6,337 (1,837) 37,302 37,302 37,302 - 3,326,938 3,326,938 3,356,197 (29,259) 1,350 1,350 1,350 129,376 128,026 (244,278) (244,278) 1,350 (114,902) (116,252) 1,232,663 1,232,663 1,232,663 - $ 1,234,013 $ 1,234,013 $ 1,117,761 $ (116,252) The notes to the financial statements are an integral part of this statement. -34- CITY OF CORCORAN, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2014 ASSETS CURRENT ASSETS Cash and temporary investments NONCURRENT ASSETS Capital assets Land Infrastructure Construction in progress Less: accumulated depreciation Net capital assets TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Accounts payable Accrued interest payable TOTAL CURRENT LIABILITIES NONCURRENT LIABILITIES Notes payable Bonds payable, net of premium TOTAL NONCURRENT LIABILITIES TOTAL LIABILITIES NET POSITION Net investment in capital assets Unrestricted NET POSITION Business -type Activities - Enterprise Funds Water Sewer Totals $ 1,448,283 $ 744,980 $ 2,193,263 181,631 180,131 361,762 934,201 1,053,460 1,987,661 1,023,871 662,757 1,686,628 (46,753) (52,721) (99,474) 2,092,950 1,843,627 3,936,577 3,541,233 2,588,607 6,129,840 445,798 297,079 742,877 21,941 16,913 38,854 467,739 313,992 781,731 300,000 - 300,000 1,780,728 1,375,227 3,155,955 2,080,728 1,375,227 3,455,955 2,548,467 1,689,219 4,237,686 888,860 1,013,044 1,901,904 103,906 (113,656) (9,750) $ 992,766 $ 899,388 $ 1,892,154 The notes to the financial statements are an integral part of this statement. -35- CITY OF CORCORAN, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2014 OPERATING EXPENSES Repairs and maintenance Other services and charges Depreciation TOTAL OPERATING EXPENSES OPERATING LOSS NONOPERATING REVENUES (EXPENSES) Interest on investments Interest expense Bond issuance costs TOTAL NONOPERATING REVENUES (EXPENSES) LOSS BEFORE CONTRIBUTIONS AND TRANSFERS CAPITAL CONTRIBUTIONS Connection fees Developer contributions TRANSFERS OUT CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Business -type Activities - Enterprise Funds Water Sewer Totals $ 717 $ 543 $ 1,260 300,000 - 300,000 31,140 35,115 66,255 331,857 35,658 367,515 (331,857) (35,658) (367,515) 2,777 1,921 4,698 (15,811) - (15,811) (56,923) (43,951) (100,874) (69,957) (42,030) (111,987) (401,814) (77,688) (479,502) 113,457 93,850 207,307 530,000 - 530,000 (125,887) (125,887) (251,774) 115,756 (109,725) 6,031 877,010 1,009,113 1,886,123 $ 992,766 $ 899,388 $ 1,892,154 The notes to the financial statements are an integral part of this statement. -36- CITY OF CORCORAN, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2014 CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers out CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Connection fees and developer contributions Acquisition of capital assets Proceeds of bonds issued, net of issuance costs and premium on bonds Interest paid on debt NET CASH PROVIDED BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 RECONCILIATION OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES Operating loss Adjustments to reconcile operating loss to net cash used by operating activities Depreciation Increase (decrease) in liabilities Accounts payable Notes payable NET CASH USED BY OPERATING ACTIVITIES Business -type Activities - Enterprise Funds $ (30,891) $ (25,770) $ (56,661) (125,887) (125,887) (251,774) 643,457 93,850 737,307 (715,821) (512,530) (1,228,351) 1,726,396 1,333,288 3,059,684 (16,500) - (16,500) 1,637,532 914,608 2,552,140 875 456 1,331 1,481,629 763,407 2,245,036 (33,346) (18,427) (51,773) $ 1,448,283 $ 744,980 $ 2,193,263 $ (331,857) $ (35,658) $ (367,515) 31,140 35,115 66,255 (30,174) (25,227) (55,401) 300,000 - 300,000 $ (30,891) $ (25,770) $ (56,661) NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Capitalized interest $ 21,941 $ 16,366 $ 38,307 Acquisition of capital assets on account $ 467,740 $ 313,992 $ 781,732 Amortization of bond premium $ 689 $ 547 $ 1,236 The notes to the financial statements are an integral part of this statement. -37- CITY OF CORCORAN, MINNESOTA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS DECEMBER 31, 2014 ASSETS Cash and temporary investments Accounts receivable TOTAL ASSETS LIABILITIES Accounts payable Deposits payable TOTAL LIABILITIES Agency 500 501 Lions and Escrow Jaycees Total $ 456,661 $ 6,000 $ 462,661 49,096 - 49,096 $ 505,757 $ 6,000 $ 511,757 $ 48,815 $ 6,000 $ 54,815 456,942 - 456,942 $ 505,757 $ 6,000 $ 511,757 The notes to the financial statements are an integral part of this statement. -38- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting entity The City of Corcoran, Minnesota (the City), operates under a Home Rule Charter form of government. The charter provides for citizen input for initiative, referendum and recall. Under this plan, the government of the City is directed by a City Council composed of an elected Mayor and four elected City Council members. The City Council exercises legislative authority and determines all matters of policy. The City Council appoints personnel responsible for the proper administration of all affairs relating to the City. The City has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the primary government to impose its will on that organization or (2) the potential for the organization to provide the specific benefits to, or impose specific financial burdens on the primary government. Blended component units, although legally separate entities, are in substance, part of the City's operations and so data from these units are combined with data of the primary government. The City has the following component unit: Blended component unit The Economic Development Authority (the EDA) of the City was created pursuant to Minnesota statutes 469.090 through 469.108 to carry out economic and industrial development and redevelopment consistent with policies established by the City Council. The EDA may not exercise any of the powers enumerated by the authorizing statutes without prior approval of the Board of Commissioners. The activity of the EDA are blended and reported as a Debt Service fund due to the financial benefit/burden relationship. The only prior activity of the EDA was to issue the 2004 Public Project revenue bonds (reported in the Facility Expansion fund) and the EDA has a December 31 year end. Separate financial statements are not issued for this component unit. B. Government -wide and fund financial statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non - fiduciary activities of the City and its component unit. The effect of interfund activity has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. -39- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED C. Measurement focus, basis of accounting and financial statement presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Non - exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non - exchange transactions must also be available before it can be recognized. Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as unearned revenue. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. -40- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED The City reports the following major governmental funds: 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 Tax Increment Financing fund accounts for the City's tax increment financing activities. The City reports the following major proprietary funds: The Water fund (601) account for costs associated with the City's water system and ensures that user charges are sufficient to pay for those costs. The Sewer fund (602) account for the costs associated with the City's sewer system and ensures that user charges are sufficient to pay for those costs. Additionally, the City reports the following fund types: Fiduciary funds account for assets held by the government in a trustee capacity or as an agent of behalf of others. The agency fund is custodial in nature and does not present results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. This fund is used to account for assets that the City holds for others in an agency capacity. As a general rule the effect of interfund activity has been eliminated from government -wide financial statements. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. -41- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED D. Assets, liabilities, deferred inflows of resources and net position /fund balance 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. The proprietary funds' portion in the government -wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the Statements of Cash Flows. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. The City may also invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. 3. General obligations of a state or local government with taxing powers rated "A" or better; revenue obligations rated "AA" or better. 4. General obligations of the Minnesota Housing Finance Agency rated "A" or better. 5. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. 6. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. 7. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers. 8. Guaranteed Investment Contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. Investments for the City are reported at fair value. The broker money market investment pool operates in accordance with appropriate State laws and regulations. The reported value of the pool is the same as the fair value of the pool share. The City's investment policy limits the term of investments to be less than five years. All other policy provisions are limited to Minnesota statutes. Property taxes The City Council annually adopts a tax levy in December and certifies it to the County for collection in the following year. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected by the County Treasurer and tax settlements are made to the City during January, July and December each year. Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred inflow of resources for taxes not received within 60 days after year end in the governmental financial statements. -42- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Accounts receivable Accounts receivable include amounts billed for services provided before year end. Amounts outstanding at year end are considered fully collectible. Special assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivable upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All governmental special assessments receivable are offset by a deferred inflow of resources in the fund financial statements. Interfund receivables and payables Activity between funds that are representative of lendingiborrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to /from other funds" (i.e., the current portion of interfund loans) or "advances to /from other funds" (i.e., the non - current portion of interfund loans). All other outstanding balances between funds are reported as "due to /from other funds ". Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in the General fund or a restricted, committed or assigned account in applicable governmental funds to indicate the constraint on these resources. Prepaid items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Capital assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are, reported in the governmental activities column in the government -wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of five years. The City reports infrastructure assets on a network and subsystem basis. Accordingly, the amounts spent for the construction or acquisition on infrastructure assets are capitalized and reported in the government -wide financial statements. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the City chose to include all such items regardless of their acquisition date or amount. The City was able to estimate the historical cost for the initial reporting of these assets through backtrending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price -level index to deflate the cost to the acquisition year). As the City constructs or acquires additional capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate. In the case of donations the City values these capital assets at the estimated fair value of the item at the date of its donation. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of assets constructed. Interest expense of $21,941 and $16,366 was capitalized in the Water and Sewer enterprise funds, respectively, in 2014 related to the 2014 SE District Water and Sewer Improvements. -43- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Property, plant and equipment of the City are depreciated using the straight -line method over the following estimated useful lives: Useful Lives Assets in Years Buildings and improvements 7-40 Infrastructure 15 -50 Equipment and machinery 5-60 Vehicles 3 -50 Roads and highways 20-40 Land improvements 5-30 Compensated absences It is the City's policy to permit employees to accumulate a limited amount of earned but unused vacation, which is paid to the employee upon separation. A portion of unused sick leave may also be paid upon separation from City service. In governmental fund types the cost of these benefits are recognized when payments are made to the employees. The General fund is typically used to liquidate governmental compensated absences payable. Postemployment benefits other than pensions Under Minnesota statute 471.61, subdivision 2b., public employers must allow retirees and their dependents to continue coverage indefinitely in an employer- sponsored health care plan, under the following conditions: 1) Retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in group plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees may obtain dependent coverage immediately before retirement. All premiums are funded on a pay -as- you -go basis. The liability was actuarially determined, in accordance with GASB Statement 45, at January 1, 2014. Long -term obligations In the government -wide financial statements long -term debt and other long -term obligations are reported as liabilities in the statement of net position. The recognition of bond premiums and discounts are amortized over the life of the bonds using the effective interest method. Bond issuance costs are reported as an expense in the period incurred. In the fund financial statements, governmental fund types recognized bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Deferred inflows of resources In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting that qualifies as needing to be reported in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. -44- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Fund balance In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These classifications are defined as follows: Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as due from other funds. Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council, which is the City's highest level of decision - making authority. Committed amounts cannot be used for any other purpose unless the City Council modifies or rescinds the commitment by resolution. Assigned - Amounts constrained for specific purposes that are internally imposed. In governmental funds other than the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established by the City Council itself or by an official to which the governing body delegates the authority. The City Council has adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the City Administrator. Unassigned - The residual classification for the General fund and also negative residual amounts in other funds. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City has formally adopted a fund balance policy for the General fund. The City's policy is to maintain a minimum unrestricted fund balance of 35 percent of budgeted operating expenditures for cash -flow timing needs. Net position In the government -wide financial statements, net position represents the difference between assets and liabilities. Net position is displayed in three components: a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b. Restricted net position- Consist of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c. Unrestricted net position- All other net position balances that do not meet the definition of "restricted" or "net investment in capital assets" When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. -45- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General fund. All annual appropriations lapse at fiscal year -end. The City does not use encumbrance accounting. In July 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 30"', the proposed budget is presented to the City Council for review. The City Council holds public hearings and a final budget is prepared and adopted in December. The appropriated budget is prepared by fund, function and department. The City's department heads, with the approval of the City Council, 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 (i.e., the level at which expenditures may not legally exceed appropriations) is the department level. The budget was not amended during the year. B. Deficit fund equity The following funds had fund equity deficits at December 31, 2014: Fund Amount Nonmaj or Police Donation $ 60 Firearms Safety 926 Shannon Lane 20,348 The deficit in the Shannon Lane fund will be eliminated with future special assessment collections. The Police Donation and Firearms Safety deficits will be eliminated with future revenues. C. Excess of expenditures over appropriations For the year ended December 31, 2014 expenditures exceeded appropriations in the General fund by $29,259. The expenditures over budget were funded by current year revenues. -46- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 3: DETAILED NOTES ON ALL FUNDS A. Deposits and investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City's deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. 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 percent of the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes: • United States government Treasury bills, Treasury notes, Treasury bonds; • Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; • General obligation securities of any state or local government with taxing powers which is rated "A" or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and • Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the City. At year end, the City's carrying amount of deposits was $5,155,202 and the bank balance was $5,267,019. Of the bank balance, $625,353 was covered by federal depository insurance, and the remainder was covered by collateral held by the City's agent in the City's name. -47- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED In vestm en is As of December 31, 2014, the City had the following investments that are insured or registered, or securities held by the City or its agent in the City's name. Types of Investments Pooled investments Money Market Mutual funds Non - pooled investments Brokered Certificates of Deposit Total investments $ 1,545,071 (1) Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk. (2) Interest rate risk is disclosed using the segmented time distribution method. N/A Indicated not applicable or unavailable. The investments of the City are subject to the following risks: • Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota statutes limit the City's investments to the list on page 42 of the notes. • Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City's investment policy does not address custodial credit risk but typically limits its exposure by purchasing insured or registered investments. • Concentration of Credit Risk. The concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The City places no limit on the amount that may be invested in any one issuer. • Interest Rate Risk. The interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the City manages its exposure to declines in fair values by limiting the maturity of its investment portfolio to less than five years. Cash and investments summary A reconciliation of cash and temporary investments as reported on the statement of net position follows: Carrying amount of deposits $ 5,155,202 Investments 1,545,071 Total $ 6,700,273 Cash and temporary investments Statement of Net Position $ 6,237,612 Statement of Fiduciary Net Position 462,661 Total $ 6,700,273 -48- Fair Value Credit Segmented and Quality/ Time Carrying Ratings (1) Distribution (2) Amount N/A Less than 6 months $ 51,676 N/A Less than 6 months 1,493,395 $ 1,545,071 (1) Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk. (2) Interest rate risk is disclosed using the segmented time distribution method. N/A Indicated not applicable or unavailable. The investments of the City are subject to the following risks: • Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota statutes limit the City's investments to the list on page 42 of the notes. • Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City's investment policy does not address custodial credit risk but typically limits its exposure by purchasing insured or registered investments. • Concentration of Credit Risk. The concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The City places no limit on the amount that may be invested in any one issuer. • Interest Rate Risk. The interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the City manages its exposure to declines in fair values by limiting the maturity of its investment portfolio to less than five years. Cash and investments summary A reconciliation of cash and temporary investments as reported on the statement of net position follows: Carrying amount of deposits $ 5,155,202 Investments 1,545,071 Total $ 6,700,273 Cash and temporary investments Statement of Net Position $ 6,237,612 Statement of Fiduciary Net Position 462,661 Total $ 6,700,273 -48- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED B. Capital assets Capital asset activity for the year ended December 31, 2014 was as follows: Governmental activities Capital assets not being depreciated Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated Buildings Equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation Buildings Equipment Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Beginning Ending Balance Increases Decreases Balance $ 1,410,197 $ - $ - $ 1,410,197 3,439,005 710,517 (3,834,154) 315,368 4,849,202 710,517 (3,834,154) 1,725,565 1,697,354 2,934,129 1,930,103 3,834,154 347,293 (112,541) 5,531,508 3,168,881 1,930,103 6,561,586 4,181,447 (112,541) 10,630,492 (730,259) (133,641) - (863,900) (1,882,435) (257,803) 83,746 (2,056,492) (323,599) (64,337) - (387,936) (2,936,293) (455,781) 83,746 (3,308,328) 3,625,293 3,725,666 (28,795) 7,322,164 $ 8,474,495 $ 4,436,183 $ (3,862,949) $ 9,047,729 -49- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Beginning Ending Balance Increases Decreases Balance Business -type activities Capital assets not being depreciated Land $ - $ 361,762 $ - $ 361,762 Construction in progress - 1,686,628 - 1,686,628 Total capital assets, not being depreciated - 2,048,390 - 2,048,390 Capital assets, being depreciated Infrastructure 1,987,661 - - 1,987,661 Less accumulated depreciation Infrastructure (33,219) (66,255) - (99,474) Total capital assets, being depreciated, net 1,954,442 (66,255) - 1,888,187 Business -type activities capital assets, net $ 1,954,442 $ 1,982,135 $ - $ 3,936,577 Depreciation expense was charged to functions /programs of the City as follows: Governmental activities General government $ 55,407 Public safety 90,013 Public works 295,904 Culture and recreation 14,457 Total depreciation expense - governmental activities $ 455,781 Business -type activities Water $ 31,140 Sewer 35,115 Total depreciation expense - business -type activities $ 66,255 Construction commitments The City has an active construction project as of December 31, 2014. At year end, the City's commitment with contractors is as follows: Project 2014 SE District Water and Sewer Improvements -50- Spent Remaining to date commitment $ 1,602,873 $ 216,350 CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED C. Interfund balances and transfers Interfund balances The composition of internal balances as of December 31, 2014 is as follows: Receivable Fund Payable Fund Purpose Amount General Shannon Lane Finance capital purchases $ 27,033 The interfund loan will be repaid as special assessments are collected in the Shannon Lane fund. Interfund transfers Interfund transfers completed in 2014 are detailed as follows: • Transfers out totaling $244,278 were recorded from the General fund to nonmajor governmental funds to write - off interfund loans. The Infrastructure Planning fund received a transfer in of $177,967 and the Shannon Lane fund received $66,311. • Transfers out of $125,887 were recorded in both the Water and Sewer enterprise funds to record the transfer of $251,774 of 2014B bond proceeds to the nonmajor governmental Public Works Facility fund to reimburse for prior construction costs. -51- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED D. Long -term debt General obligation bonds (G.O. bonds) The City issued G.O. bonds in governmental activities for equipment purchases and the construction of the new public works facility. Both will be repaid with tax levy. Each year the tax levy equals 105 percent of the amount required for debt service. The excess of 5 percent is to cover any delinquencies in tax payments. G.O. bonds are direct obligations and pledge the full faith and credit of the City. Bonds currently outstanding are as follows: Description G.O. Capital Improvement Bonds Series 2012B G.O. Equipment Certificate of 2008A G.O. Equipment Certificate of 2010A G.O. Equipment Certificate of 2012A G.O. Equipment Certificate of 2014A Authorized Interest and Issued Rate $ 4,000,000 2.00-3.00 % Total General Obligation Bonds 622,000 3.50-4.05 470,000 2.35-3.95 410,000 0.65-1.75 442,000 1.75 -3.00 Issue Maturity Balance at Date Date Year End 11/01/12 02/01/38 $ 4,000,000 04/08/08 12/01/17 277,000 04/01/10 02/01/20 326,000 11/01/12 11/01/22 330,000 05/15/14 05/15/24 442,000 $ 5,375,000 Annual debt service requirements to maturity for general obligation bonds are as follows: Year Ending Governmental Activities December 31, 2015 2016 2017 2018 2019 2020-2024 2025-2029 2030-2034 2035-2038 Total -52- Principal Interest Total $ 259,000 $ 140,298 $ 399,298 265,000 128,397 393,397 310,000 120,847 430,847 201,000 112,180 313,180 266,000 106,824 372,824 1,169,000 447,310 1,616,310 875,000 339,551 1,214,551 1,045,000 223,763 1,268,763 985,000 60,824 1,045,824 $ 5,375,000 $ 1,679,994 $ 7,054,994 CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Lease revenue bonds The EDA has issued lease revenue bonds for financing building projects in accordance with Minnesota statutes 469.001 through 469.048. The agreements are supported by capital leases between the EDA and the City. The City is responsible for all operating expenses, insurance, etc. Lease revenue bonds currently outstanding are as follows: Authorized Interest Issue Maturity Balance at Description and Issued Rate Date Date Year End Public project Lease revenue bonds $ 325,000 3.25-4.40 % 08/26/04 02/01/15 $ 20,000 Annual debt service requirements to maturity for lease revenue bonds are as follows: Year Ending December 31, 2015 G.O. revenue bonds Governmental Activities Principal Interest Total $ 20,000 $ 440 $ 20,440 The following bonds were issued to finance capital improvements, and finance acquisition and construction of capital facilities. They will be repaid from future net revenues pledged from the Water and Sewer funds and are backed by the taxing power of the City. The City has not started billing for their water and sewer utility as of December 31, 2014. When billing begins, net revenues of the utilities will be pledged for payment of the bonds. G.O. revenue bonds currently outstanding are as follows: Description G.O. Utility Revenue Bonds, Series 2014B Authorized Interest and Issued Rate Issue Maturity Date Date Balance at X7 - -r ic-a $ 3,130,000 2.00 - 3.625 % 08/01/14 02/01/35 $ 3,130,000 Annual debt service requirements to maturity for G.O. revenue bonds are as follows: Year Ending December 31, 2015 2016 2017 2018 2019 2020-2024 2025-2029 2030-2034 2035 Total -53- Business -Type Activities Principal Interest Total $ - $ 93,250 $ 93,250 85,000 92,400 177,400 135,000 90,200 225,200 135,000 87,500 222,500 135,000 84,800 219,800 725,000 370,225 1,095,225 835,000 253,706 1,088,706 890,000 113,750 1,003,750 190,000 3,444 193,444 $ 3,130,000 $ 1,189,275 $ 4,319,275 CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Notes payable The City has the following note payable outstanding for water connection charges. Authorized Interest Issue Description and Issued Rate Date Notes payable $ 300,000 5.50 % 01/01/14 Annual debt service requirements to maturity for notes outstanding are as follows: Year Ending December 31, 2015 2016 2017 2018 2019 2020-2024 2025-2027 Total -54- Maturity Balance at Date Year End 12/20/27 $ 300,000 Business -Tvae Activities Principal Interest Total $ - $ 16,500 $ 16,500 - 16,500 16,500 - 16,500 16,500 23,218 16,186 39,404 24,512 14,892 39,404 144,651 52,369 19 7, 02 0 107,619 10,593 118,212 $ 300,000 $ 143,540 $ 443,540 CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Changes in long -term liabilities Long -term liability activity for the year ended December 31, 2014, was as follows: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental activities Bonds payable G.O. bonds payable Lease revenue bonds payable Total bonds payable Compensated absences payable Other postemployment benefits payable Governmental activity long -term liabilities Business -type activities Bonds payable Revenue bonds payable Unamortized premium on bonds Total bonds payable Notes payable Business -type activity long -term liabilities $ 5,108,000 $ 442,000 $ (175,000) $ 5,375,000 $ 259,000 59,000 - (39,000) 20,000 20,000 5,167,000 442,000 (214,000) 5,395,000 279,000 218,004 125,389 (132,134) 211,259 92,954 137,611 32,432 (6,465) 163,578 - $ 5,522,615 $ 599,821 $ (352,599) $ 5,769,837 $ 371,954 $ - $ 3,130,000 $ - $ 3,130,000 $ - 27,191 (1,236) 25,955 - - 3,157,191 (1,236) 3,155,955 - 300,000 - 300,000 - $ - $ 3,457,191 $ (1,236) $ 3,455,955 $ - 56SIS CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED E. Components of fund balance At December 31, 2014, portions of the City's fund balance are not available for appropriation due to not being in spendable form ( Nonspendable), legal restrictions (Restricted), City Council action (Committed), policy and/or intent (Assigned). The following is a summary of the components of fund balance: Nonspendable Prepaid items Due from other funds Total nonspendable Restricted for Tax increment financing Debt service Capital outlay Police expenditures Total restricted Committed to Truck safety Assigned to Capital outlay Police expenditures Total assigned 401 Tax Increment General Financing Nonmaj or Governmental Funds Total $ 5,373 $ - $ - $ 5,373 27,033 - - 27,033 $ 32,406 $ - $ - $ 32,406 $ - $ 1,797,122 $ - $ 1,797,122 - 155,907 155,907 - - 769,124 769,124 - - 16,008 16,008 $ - $ 1,797,122 $ 941,039 $ 2,738,161 5,045 $ 5,045 $ - $ - $ 271,858 $ 271,858 - 17,674 17,674 $ - $ - $ 289,532 $ 289,532 -56- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan description All full -time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF), which are cost sharing, multiple - employer retirement plans. These plans are established and administered in accordance with Minnesota statutes, chapters 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers and peace officers who qualify for membership by Minnesota statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by Minnesota statute, and vest after five 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 PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service. For all PEPFF members and GERF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single -life annuity is a lifetime annuity that ceases upon death of the retiree - -no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service, in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants.. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF and PEPFF. That report may be obtained on the Internet at www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or by calling (651) 296 -7460 or (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 Minnesota statutes. GERF Basic Plan members and Coordinated Plan members were required to contribute 9.10 percent and 6.25 percent, respectively, of their annual covered salary in 2014. PEPFF members are required to contribute 9.60 percent of their annual covered salary in 2014. In 2014, the City was required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan GERF members, 7.25 percent for Coordinated Plan GERF members, and 15.3 percent for PEPFF members. The City's contributions to the GERF for the years ending December 31, 2014, 2013, and 2012 were $43,661, $43,967, and $40,604, respectively. The City's contributions to the PEPFF for the years ending December 31, 2014, 2013, and 2012 were $80,862, $78,921, and $76,323, respectively. The City's contributions were equal to the contractually required contributions for each year as set by Minnesota statute. 5.1IE CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 5: POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS A. Plan description The City's defined benefit healthcare plan ( "the Retiree Health Plan ") provides healthcare insurance for eligible retirees and their spouses. The Retiree Health Plan is affiliated with the healthcare plan administered through LOGIS, an agent multiple - employer postemployment healthcare plan. LOGIS is a consortium of Minnesota local government units controlled by its members. LOGIS' Board of Directors is composed of one representative from each agency. LOGIS issues a publicly available financial report that includes financial statements and required supplementary information for the health plan. That report may be obtained by writing to LOGIS, 5750 Duluth Street, Golden Valley, MN 55422, or by calling(763)543 -2600. B. Funding policy The contribution requirements of plan members and the City are established and may be amended by LOGIS' Board of Directors. The required contributions are based on projected pay -as- you -go financing requirements. The City contributed $6,465 to the plan for the year ended December 31, 2014. As of January 1, 2014, the City has one retiree receiving health benefits from the plan. C. Annual other postemployment benefit cost The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC) of the City, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation: Annual required contribution $ 31,435 Interest on net OPEB obligation 6,192 Adjustment to annual required contribution (5,195) Annual OPEB cost (expense) 32,432 Contributions made (6,465) Increase in net OPEB obligation 25,967 Net OPEB obligation - beginning of year 137,611 Net OPEB obligation - end of year $ 163,578 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the fiscal years ended 2014, 2013, and 2012 follows: Trend Information Fiscal Percentage Year Annual Annual OPEB Net OPEB Ending OPEB Cost Contributed Obligation 12/31/2014 $ 32,432 19.9 % $ 163,578 12/31/2013 35,254 30.9 137,611 12/31/2012 33,924 26.9 113,243 -58- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 5: POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS - CONTINUED D. Funded status and funding progress As of January 1, 2014, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $307,081, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $1,118,884, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 27.4 percent. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. E. Methods and assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. In the January 1, 2014 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions include a 4.50 percent investment rate of return, which is a blended rate of the expected long -term investment returns on plan assets and on the employer's own investments. The initial healthcare trend rate was 9.00 percent, reduced by decrements to an ultimate rate of 5.00 percent after 12 years. The unfunded actuarial accrued liability (UAAL) is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 31, 2014, was 30 years. -59- CITY OF CORCORAN, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2014 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. 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. B. Legal debt margin The City's statutory debt limit is computed as 3 percent of the taxable market value of property within the City. Long- term debt issued and financed partially or entirely by special assessments is excluded from the debt limit computation. The 2014 taxable value of property located in the City is $619,937,100 which calculated to a debt limit of $18,598,113. The City has $5,375,000 of debt subject to this limit. C. Commitment and contingencies Tax increment districts The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. -60- REQUIRED SUPPLEMENTARY INFORMATION CITY OF CORCORAN CORCORAN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -61- CITY OF CORCORAN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2014 Schedule of funding progress for the postemployment benefit plan -62- UAAL as a Unfunded Percentage Funded Covered Actuarial Actuarial Actuarial Actuarial Accrued Valuation Value of Accrued Liability Date Assets Liability (UAAL) 01/01/14 $ - $ 307,081 $ 307,081 01/01/13 - 311,079 311,079 01/01/12 - 281,360 281,360 -62- UAAL as a Percentage Funded Covered of Covered Ratio Payroll Payroll - % $ 1,118,884 27.4% - 1,044,470 29.8 - 1,006,718 27.9 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF CORCORAN CORCORAN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -63- ASSETS Cash and temporary investments Receivables Accounts Special assessments Due from other governments TOTAL ASSETS LIABILITIES Accounts payable Due to other funds TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES Unavailable revenues - special assessments FUND BALANCES Restricted Committed Assigned Unassigned TOTAL FUND BALANCE CITY OF CORCORAN, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2014 Special Debt Capital Revenue Service Projects Total $ 38,304 $ 155,907 $ 839,690 $ 1,033,901 - - 90,368 90,368 - - 23,917 23,917 - - 225,000 225,000 $ 38,304 $ 155,907 $ 1,178,975 $ 1,373,186 $ 563 $ - $ 107,391 $ 107,954 - - 27,033 27,033 563 - 134,424 134,987 - - 23,917 23,917 16,008 155,907 769,124 941,039 5,045 - - 5,045 17,674 - 271,858 289,532 (986) - (20,348) (21,334) 37,741 155,907 1,020,634 1,214,282 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 38,304 $ 155,907 $ 1,178,975 $ 1,373,186 -64- CITY OF CORCORAN, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2014 Special Debt Capital REVENUES Taxes Intergovernmental Charges for services Special assessments Interest on investments Miscellaneous TOTAL REVENUES EXPENDITURES Current Public safety Capital outlay General government Public safety Public works Culture and recreation Debt service Principal Interest and other charges Bond issuance costs TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES Transfers in Bond issued Sale of capital assets TOTAL OTHER FINANCING SOURCES NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 Revenue Service Proiects Total $ - $ 363,420 $ - $ 363,420 - - 336,425 336,425 6,640 - 385,000 391,640 - - 6,715 6,715 21 43 664 728 12,583 - 95,801 108,384 19,244 363,463 824,605 1,207,312 16,859 - - 16,859 - - 1,963 1,963 535 - 98,252 98,787 - - 623,259 623,259 - - 318,918 318,918 - 214,000 - 214,000 - 132,114 - 132,114 - - 17,810 17,810 17,394 346,114 1,060,202 1,423,710 1,850 17,349 (235,597) (216,398) - - 496,052 496,052 - 540 441,460 442,000 - - 7,320 7,320 - 540 944,832 945,372 1,850 17,889 709,235.00 728,974 35,891 138,018 311,399 485,308 $ 37,741 $ 155,907 $ 1,020,634 $ 1,214,282 -65- ASSETS Cash and temporary investments LIABILITIES Accounts payable FUND BALANCES Restricted Committed Assigned Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES AND FUND BALANCES CITY OF CORCORAN, MINNESOTA NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2014 201 202 204 205 Reserve Police Firearms DWI Donation Donation Safety Forfeiture $ 17,674 $ (60) $ (926) $ 15,400 563 - - - 14,837 17,674 - - - - (60) (926) - 17,674 (60) (926) 14,837 $ 17,674 $ (6 0) $ (926) $ 15,400 -66- 206 207 Drug Truck Forfeiture Safety Total $ 1,171 $ 5,045 $ 38,304 $ 563 1,171 - 16,008 - 5,045 5,045 - - 17,674 - - (986) 1,171 5,045 37,741 $ 1,171 $ 5,045 $ 38,304 -67- CITY OF CORCORAN, MINNESOTA NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2014 -68- 201 202 204 205 Reserve Police Firearms DWI Donation Donation Safety Forfeiture REVENUES Charges for services $ 6,640 $ - $ - $ - Interest on investments 10 - (1) 8 Miscellaneous - - 4,113 4,000 TOTAL REVENUES 6,650 - 4,112 4,008 EXPENDITURES Current Public safety 4,074 1,128 5,047 1,599 Capital outlay Public safety - 535 - - TOTAL EXPENDITURES 4,074 1,663 5,047 1,599 NET CHANGE IN FUND BALANCES 2,576 (1,663) (935) 2,409 FUND BALANCES, JANUARY 1 15,098 1,603 9 12,428 FUND BALANCES, DECEMBER 31 $ 17,674 $ (60) $ (926) $ 14,837 -68- 206 207 Drug Truck Forfeiture Safety Total $ - $ - $ 6,640 1 3 21 - 4,470 12,583 1 4,473 19,244 - 5,011 16,859 - - 535 - 5,011 17,394 1 (538) 1,850 1,170 5,583 35,891 $ 1,171 $ 5,045 $ 37,741 -69- CITY OF CORCORAN, MINNESOTA NONMAJOR DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2014 -70- 309 311 407 G.O. Equipment 2012 Public Facility Certificates Works Bond Expansion Total ASSETS Cash and temporary investments $ 72,486 $ 73,294 $ 10.127 $ 155,907 FUND BALANCES Restricted $ 72,486 $ 73,294 $ 10,127 $ 155,907 -70- CITY OF CORCORAN, MINNESOTA NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2014 309 311 407 G.O. Equipment 2012 Public Facility Certificates Works Bond Expansion Total REVENUES Taxes $ 216,351 $ 103,832 $ 43,237 $ 363,420 Interest on investments 29 20 (6) 43 TOTAL REVENUES 216,380 103,852 43,231 363,463 EXPENDITURES Debt service Principal Interest and other charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES Bond issued NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 175,000 - 39,000 214,000 31,048 98,888 2,178 132,114 206,048 98,888 41,178 346,114 10,332 4,964 2,053 17,349 540 - - 540 10,872 4,964 2,053 17,889 61,614 68,330 8,074 138,018 $ 72,486 $ 73,294 $ 10,127 $ 155,907 dAE ASSETS Cash and temporary investments Receivables Accounts Special assessments Due from other governments TOTAL ASSETS LIABILITIES Accounts payable Due to other funds TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES Unavailable revenues - special assessments FUND BALANCES Restricted Assigned Unassigned TOTAL FUND BALANCE TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES CITY OF CORCORAN, MINNESOTA NONMAJOR CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2014 415 416 Park Capital S Capital Equip -Cert $ 365,836 $ 120,623 $ 417 419 420 hannon Hackamore Wetland Lane Unerade Restoration 6,685 $ 285,171 $ 100,060 23,917 - - $ 365,836 $ 120,623 $ 30,602 $ 285,171 1 $ 100,060 - - 27,033 - - - - 27,033 - - 23,917 - - 270,590 113,303 - 285,171 100,060 95,246 7,320 - - - - - (20,348) - - 365,836 120,623 (20,348) 285,171 100,060 $ 365,836 $ 120,623 $ 30,602 $ 285,171 1 $ 100,060 -72- 305 308 310 411 421 402 Asphalt Police County Road Public Works Infrastructure Maintenance Capital 19 Improvement Facility Hope Center Planning Total $ 71,595 $ - $ 10,046 $ 98,217 $ (218,543) $ - $ 839,690 - - - - 90,368 - 90,368 - - - - - - 23,917 - - - - 225,000 - 225,000 $ 71,595 $ - $ 10,046 $ 98,217 $ 96,825 $ $ 1,178,975 $ - $ - $ - $ 10,566 $ 96,825 $ - $ 107,391 - - - - - - 27,033 - - - 10,566 96,825 - 134,424 - - - - - 23,917 - - - - - - 769,124 71,595 - 10,046 87,651 - - 271,858 - - - - - - (20,348) 71,595 - 10,046 87,651 - - 1,020,634 $ 71,595 $ - $ 10,046 $ 98,217 $ 96,825 $ - $ 1,178,975 -73- CITY OF CORCORAN, MINNESOTA NONMAJOR CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2014 REVENUES Intergovernmental Charges for services Special assessments Interest on investments Miscellaneous W6yr_110:1WIrld "201 *1 EXPENDITURES Capital outlay General government Public safety Public works Culture and recreation Debt service Bond issuance costs TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES Transfers in Bond issued Sale of capital assets TOTAL OTHER FINANCING SOURCES NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 415 416 417 419 Park Capital Shannon Hackamore Capital Equip -Cert Lane Upgrade - - - 285,000 - - 6,715 - 242 75 (30) 171 420 Wetland 100,000 60 5,100 333 - - - 5,342 408 6,685 285,171 100,060 1,963 - - - 87,960 - - - - 228,112 - - - 3,550 - - - - - 17,810 - - - 3,550 335,845 - - - 1,792 (335,437) 6,685 285,171 100,060 - - 66,311 - - 441,460 - - - - 7,320 - - - - 448,780 66,311 - - 1,792 113,343 72,996 285,171 100,060 364,044 7,280 (93,344) - - $ 365,836 $ 120,623 $ (20,348) $ 285,171 $ 100,060 -74- 305 308 310 411 421 402 Asphalt Police County Road Public Works Infrastructure Maintenance Capital 19 Improvement Facility Hope Center Planning Total $ - $ - $ 111,425 $ - $ 225,000 $ - $ 336,425 - - - - - - 385,000 - - - - - - 6,715 47 - 10 126 - (37) 664 - - - - 90,368 - 95,801 47 - 111,435 126 315,368 (37) 824,605 - 10,292 - - - - - 395,147 - - - - - 315,368 10,292 - 395,147 315,368 47 (10,292) 111,435 (395,021) - 251,774 - 1,963 - 98,252 - 623,259 - 318,918 - 17,810 - 1,060,202 - (37) (235,597) - 177,967 496,052 - - 441,460 - - 7,320 - - - 251,774 - 177,967 944,832 47 (10,292) 111,435 (143,247) - 177,930 709,235 71,548 10,292 (101,389) 230,898 - (177,930) 311,399 $ 71,595 $ - $ 10,046 $ 87,651 $ - $ - $ 1,020,634 1062 CITY OF CORCORAN, MINNESOTA GENERALFUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED ON THE FOLLOWING PAGES FOR THE YEAR ENDED DECEMBER 31, 2014 (With comparative actual amounts for the year ended December 31, 2013) Charges for services General government 10,700 2014 32,799 22,099 2013 Public safety Budgeted Amounts Actual Variance with Actual 13,036 Original Final Amounts Final Budget Amounts REVENUES Recycling 64,675 64,675 61,980 (2,695) Taxes Total 141,205 141,205 163,830 22,625 General property taxes $ 2,731,875 $ 2,731,875 $ 2,776,339 $ 44,464 $ 2,587,838 Cable franchise fees 35,000 35,000 40,321 5,321 39,489 Total 2,766,875 2,766,875 2,816,660 49,785 2,627,327 Licenses and permits Miscellaneous Business 18,250 18,250 18,270 20 18,300 Nonbusiness 50,000 50,000 114,137 64,137 141,224 Total 68,250 68,250 132,407 64,157 159,524 Intergovernmental Total 16,348 16,348 36,733 20,385 Federal TOTAL REVENUES 3,328,288 3,328,288 3,485,573 157,285 FEMA - - - - 114,696 State Property tax credits 11,405 11,405 11,405 - 11,028 PERA aid 1,845 1,845 1,845 - 1,845 Police state aid 50,500 50,500 57,174 6,674 47,190 State aid for streets 125,000 125,000 130,468 5,468 125,051 Other 44,360 44,360 44,360 - 32,599 County Recycling 14,500 14,500 14,845 345 14,808 Other 10,000 10,000 12,842 2,842 25,783 Total 257,610 257,610 272,939 15,329 373,000 Charges for services General government 10,700 10,700 32,799 22,099 56,338 Public safety 7,300 7,300 12,924 5,624 13,036 Streets and highways 58,530 58,530 56,127 (2,403) 67,203 Recycling 64,675 64,675 61,980 (2,695) 62,607 Total 141,205 141,205 163,830 22,625 199,184 Fines and forfeitures 75,000 75,000 42,278 (32,722) 58,194 Special assessments - - 20,295 20,295 - Interest on investments 3,000 3,000 431 (2,569) 1,026 Miscellaneous Contributions and donations 1,000 1,000 2,151 1,151 3,785 Refunds and reimbursements - - - - 9,363 Other 15,348 15,348 34,582 19,234 34,454 Total 16,348 16,348 36,733 20,385 47,602 TOTAL REVENUES 3,328,288 3,328,288 3,485,573 157,285 3,465,857 -76- CITY OF CORCORAN, MINNESOTA GENERALFUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2014 (With comparative actual amounts for the year ended December 31, 2013) Elections Supplies 5,000 5,000 8,733 (3,733) 1,397 Auditor /treasurer Other services and charges 24,940 24,940 26,750 (1,810) 22,992 Assessor Supplies 1,000 1,000 882 118 960 Other services and charges 52,788 52,788 53,708 (920) 50,203 Total 53,788 53,788 54,590 (802) 51,163 Legal services Other services and charges 30,000 2014 16,527 13,473 2013 Planning administration Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts EXPENDITURES Other services and charges 50,000 50,000 44,725 5,275 Current Total 51,000 51,000 48,085 2,915 General government Information technology City Council Supplies 12,000 12,000 13,171 (1,171) Personal services $ 7,105 $ 7,105 $ 7,105 $ - $ 7,105 Supplies 100 100 - 100 - Other services and charges 46 46 54 (8) 41 Total 7,251 7,251 7,159 92 7,146 Newspaper /newsletter Other services and charges 5,200 5,200 5,033 167 5,182 Administrator Personal services 122,200 122,200 123,756 (1,556) 151,662 Supplies 4,350 4,350 4,886 (536) 2,189 Other services and charges 1,509 1,509 589 920 1,227 Total 128,059 128,059 129,231 (1,172) 155,078 Clerk Personal services 170,372 170,372 169,677 695 170,482 Supplies 3,000 3,000 711 2,289 2,292 Other services and charges 1,191 1,191 989 202 1,134 Total 174,563 174,563 171,377 3,186 173,908 Elections Supplies 5,000 5,000 8,733 (3,733) 1,397 Auditor /treasurer Other services and charges 24,940 24,940 26,750 (1,810) 22,992 Assessor Supplies 1,000 1,000 882 118 960 Other services and charges 52,788 52,788 53,708 (920) 50,203 Total 53,788 53,788 54,590 (802) 51,163 Legal services Other services and charges 30,000 30,000 16,527 13,473 30,865 Planning administration Supplies 1,000 1,000 3,360 (2,360) 458 Other services and charges 50,000 50,000 44,725 5,275 42,221 Total 51,000 51,000 48,085 2,915 42,679 Information technology Supplies 12,000 12,000 13,171 (1,171) 10,975 Other services and charges 6,000 6,000 7,198 (1,198) 13,481 Total 18,000 18,000 20,369 (2,369) 24,456 dre CITY OF CORCORAN, MINNESOTA GENERALFUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2014 (With comparative actual amounts for the year ended December 31, 2013) -78- 2014 2013 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts EXPENDITURES - CONTINUED Current - continued General government - continued Code enforcement Personal services $ 74,154 $ 74,154 $ 65,850 $ 8,304 $ 56,452 Supplies 1,750 1,750 1,175 575 708 Other services and charges 701 701 727 (26) 100 Total 76,605 76,605 67,752 8,853 57,260 City center Supplies 21,000 21,000 19,498 1,502 23,544 Other services and charges 39,314 39,314 38,060 1,254 39,944 Total 60,314 60,314 57,558 2,756 63,488 Other general government Supplies 3,255 3,255 2,723 532 6,573 Other services and charges 84,115 84,115 108,384 (24,269) 106,842 Total 87,370 87,370 111,107 (23,737) 113,415 Total general government 722,090 722,090 724,271 (2,181) 749,029 Public safety Police Personal services 888,242 888,242 872,629 15,613 858,539 Supplies 70,750 70,750 54,321 16,429 71,368 Other services and charges 96,430 96,430 82,623 13,807 91,526 Total 1,055,422 1,055,422 1,009,573 45,849 1,021,433 Fire Other services and charges 239,000 239,000 240,222 (1,222) 236,478 Building inspection Other services and charges 33,000 33,000 110,949 (77,949) 27,835 Total public safety 1,327,422 1,327,422 1,360,744 (33,322) 1,285,746 Public works Streets and highways Personal services 425,488 425,488 426,471 (983) 389,313 Supplies 488,000 488,000 482,685 5,315 445,355 Other services and charges 113,571 113,571 114,040 (469) 50,712 Total 1,027,059 1,027,059 1,023,196 3,863 885,380 Snow and ice removal Supplies 29,000 29,000 32,904 (3,904) 39,361 Engineering Other services and charges 43,000 43,000 41,751 1,249 38,592 -78- CITY OF CORCORAN, MINNESOTA GENERALFUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2014 (With comparative actual amounts for the year ended December 31, 2013) EXPENDITURES - CONTINUED Current - continued Public works - continued Recycling Supplies Other services and charges Total Total public works Culture and recreation Parks Personal services Supplies Other services and charges Total culture and recreation Total current expenditures Capital outlay General government Public works Culture and recreation Total capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING USES Transfers out NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 2014 Budgeted Amounts Original Final Actual Amounts Variance with Actual Final Budget Amounts $ 1,000 $ 1,000 $ 1,025 $ (25) $ 797 69,000 69,000 69,722 (722) 67,420 70,000 70,000 70,747 (747) 68,217 1,169,059 1,169,059 1,168,598 461 1,031,550 31,676 31,676 25,739 5,937 25,740 25,000 25,000 21,542 3,458 39,464 9,889 9,889 8,213 1,676 7,929 66,565 66,565 55,494 11,071 73,133 3,285,136 3,285,136 3,309,107 (23,971) 3,139,458 - - 3,451 (3,451) - 4,500 4,500 6,337 (1,837) 3,890 37,302 37,302 37,302 - 32,599 41,802 41,802 47,090 (5,288) 36,489 3,326,938 3,326,938 3,356,197 (29,259) 3,175,947 1,350 1,350 129,376 128,026 289,910 1,350 - (244,278) (244,278) 1,350 (114,902) (116,252) 289,910 1,232,663 1,232,663 1,232,663 - 942,753 $ 1,234,013 $ 1,234,013 $ 1,117,761 $ (116,252) $ 1,232,663 -79- CITY OF CORCORAN, MINNESOTA FIDUCIARY FUNDS COMBINING SCHEDULE OF NET POSITION DECEMBER 31, 2014 Agency 500 501 Lions and Escrow Jaycees Total ASSETS Cash and temporary investments $ 456,661 $ 6,000 $ 462,661 Accounts receivable Peachtree -CPA 2,645 - 2,645 Hedgestone final plat 22,579 - 22,579 Peachtree Sewer and Water 1,818 - 1,818 Laurent - Hedgstone 16,863 - 16,863 Peachtree Transportation 670 - 670 Peachtree Engineering 2015 -01 4,521 - 4,521 Total accounts receivable TOTAL ASSETS -80- 49,096 49,096 $ 505,757 $ 6,000 $ 511,757 CITY OF CORCORAN, MINNESOTA FIDUCIARY FUNDS COMBINING SCHEDULE OF NET POSITION - CONTINUED DECEMBER 31, 2014 -81- Agency 500 501 Lions and Escrow Jaycees Total LIABILITIES Accounts payable $ 48,815 $ 6,000 $ 54,815 Deposits payable Tim Kreps 43 - 43 Great River Energy 521 - 521 Funfar CUP 603 - 603 Construction Science Site Plan 409 - 409 Lano Equipment 673 - 673 Karachenets New Home Agreement 860 - 860 Lennar Design 203,454 - 203,454 Lennar - Storm water Design 14,767 - 14,767 Lennar CSAH 101 Turn Lanes 34,465 - 34,465 Ess Site Plan 425 - 425 Hentges - Special Home Occupatio 16 - 16 Sprint -SBA Communication 542 - 542 CSAH 101 Traffic Signal 100,000 - 100,000 Fox Ridge 2nd 3,457 - 3,457 Lake Independence Regional Trail 600 - 600 Hope Ministries 940 - 940 Patnode Topo/Wetland Exemption 26 - 26 SAC Wireless -AT &T 371 - 371 Julkowski 344 - 344 Patnode 14 -021 3,367 - 3,367 Nagengast -Burnett Title 412 - 412 Proehl- Topography 375 - 375 Sprint -Faulk & Foster 263 - 263 Rush Creek Meadows final plat 1,293 - 1,293 Ryan 138 - 138 Lennar - Phase 1 Monuments 3,800 - 3,800 Lennar -PUD Final 8,451 - 8,451 Lennar Eng Plan Review /Modific 20,501 - 20,501 Schendel Property 14 -027 264 - 264 Proehl Farm 3,624 - 3,624 Tombers Topography Exemption 269 - 269 Corcoran Pet Center -Sign 177 - 177 Tombers Prelim/Final Plat 4,971 - 4,971 Lennar Ravinia 2nd Addition 13,824 - 13,824 United Properties 32,697 - 32,697 Total deposits payable 456,942 - 456,942 TOTAL LIABILITIES $ 505,757 $ 6,000 $ 511,757 -81- CITY OF CORCORAN, MINNESOTA SUMMARY FINANCIAL REPORT REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTALFUNDS FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous TOTAL REVENUES Per Capita EXPENDITURES Current General government Public safety Public works Culture and recreation Capital outlay General government Public safety Public works Culture and recreation Debt service Principal Interest and other charges Bond issuance costs TOTAL EXPENDITURES Per Capita Total Long -term Indebtedness Per Capita General Fund Balance - December 31 Per Capita $ 724,271 Percent Total (3.31) Increase 2014 2013 (Decrease) $ 3,180,080 $ 3,245,389 (2.01) % 132,407 159,524 (17.00) 713,545 373,034 91.28 555,470 228,614 142.97 42,278 58,194 (27.35) 27,010 3,599 650.49 2,379 8,897 (73.26) 145,117 67,162 116.07 $ 4,798,286 $ 4,144,413 15.78 % $ 877 $ 758 15.76 % $ 724,271 $ 749,029 (3.31) % 1,377,603 1,304,719 5.59 1,168,598 1,031,550 13.29 55,494 73,133 (24.12) 5,414 17,991 (69.91) 98,787 53,327 85.25 702,055 3,570,456 (80.34) 356,220 33,790 954.22 214,000 344,454 (37.87) 132,114 113,497 16.40 17,810 - N/A $ 4,852,366 $ 7,291,946 (33.46) % $ 887 $ 1,333 (33.47) % $ 5,395,000 $ 5,167,000 4.41 % 986 945 4.39 $ 1,117,761 $ 1,232,663 (9.32) % 204 225 The purpose of this report is to provide a summary of financial information concerning the City of Corcoran to interested citizens. The complete financial statements maybe examined at City Hall, 8200 County Road 116, Corcoran, MN 55340. Questions about this report should be directed to Brad Martens, City Administrator at (763) 420 -2288. -82- OTHER REPORTS CITY OF CORCORAN CORCORAN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 -83- THIS PAGE IS LEFT BLANK INTENTIONALLY -84- k A B D 0 w.� EICK & ME 1 E W LLP Certified Public Accountants & Consultants INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of Corcoran, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, financial statements of the governmental activities, business -type activities, each major fund, and the aggregate remaining fund information of the City of Corcoran, Minnesota (the City), as of and for the year ended December 31, 2014, and the related notes to the financial statements, and have issued our report thereon dated April 24, 2015. The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the State Auditor pursuant to Minnesota Statute §6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing. Our audit considered all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions. This report is intended solely for the information and use those charged with governance and management of the City and the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota April 24, 2015 5201 Eden Avenue, Suite 250 Edina, MN 55436 -85- 952.835.9090 1 Fax 952.835.3261 City of Corcoran City Council Meeting Minutes April 23, 2015 - 7:00 PM The Corcoran City Council met on April 23, 2015, at City Hall in Corcoran, Minnesota. Present were, Mayor Guenthner, Councilor Hank, Councilor LaFave, and Councilor Thomas. Councilor Keefe was excused. Also present were City Administrator Martens, City Attorney Carson, City Planner Lindahl, and City Clerk Heinecke. 1. Call to Order / Roll Call Mayor Guenthner called the meeting to order at 7:00 pm. 2. Pledge of Allegiance Mayor Guenthner invited all in attendance to rise and join in the Pledge of Allegiance. 3. Agenda Approval MOTION: made by LaFave, seconded by Thomas to approve the agenda as presented with the following additions: 9g. Parcel Building Rights r 11 d. Separation Agreement Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) 4. Open Forum Dale Haglund 22966 County Rd 50, updated council on the private driveway issues. Asked council to waive fees related to hauling and storing dirt. Mr. Haglund was directed to contact staff. 5. Presentations -None 6. Consent Agenda a. Draft Minutes of April 9, 2015 Council Meeting b. Ordinance 2015 -301 Authorizing Recover of Costs c. Resolution 2015 -23 Police Officer Declaration of PERA — Dickie d. Resolution 2015 -24 Police Officer Declaration of PERA — Irish MOTION: made by Thomas, seconded by Hank to approve the consent agenda items 6a, and 6b, as presented. Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) MOTION: made by LaFave, seconded by Hank to approve the consent agenda items 6c, and 6d, as presented. Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) 7. Claims as Presented a. Escrow Claims (Fund #500) MOTION: made by Thomas, seconded by Hank to approve escrow claims as presented. Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) b. All Other Financial Claims MOTION: made by LaFave, seconded by Hank to approve all other financial claims as presented. Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) 8. Staff Reports / Memos /Commissions a. Planning Update Report received, no action required. b. Code Compliance Report received, no action required. City of Corcoran City Council Meeting Minutes April 23, 2015 - 7:00 PM c. Financial Performance Report received, no action required. d. Public Works Facility Warranty Issues report received. Council discussed, no action required. 9. Planning Business / Landform a. Ravinia 2nd Addition Final Plat and Final PUD Plan (City file 15 -003) Report presented by City Planner Lindahl. MOTION: made by LaFave, seconded by Thomas to approve Resolution 2015 -19 "Approving Final PUD Development Plan for Ravinia 2nd Addition" as presented. Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) MOTION: made by Thomas, seconded by Hank to approve Resolution 2015 -20 "Approving Final Plat and Development Plan for Ravinia 2nd Addition" as presented. Council discussed Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) b. PUBLIC HEARING. Gleason Road right -of -way Vacation for Ravinia (city file 15 -003) Report presented by City Planner Lindahl Mayor Guenthner opened the Public Hearing. No public comment. MOTION: made by LaFave, seconded by Thomas to close the public hearing. Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) MOTION: made by Thomas, seconded by Hank to approve Resolution 2015 -21 "Approving Vacation of Gleason Road within the Proposed Ravinia Subdivision" as presented. Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) c. Public Works Site Plan Amendment and Variance (city file 15 -006) Report presented by City Planner Lindahl MOTION: made by Hank, seconded by LaFave to approve Resolution 2015 -22 "Approval of a Site Plan Amendment and Variance for the Corcoran Public Works Facility at 9100 County Road 19 (PID 18- 119- 23 -13- 0001)" as presented. Council discussed Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) d. Hope Church Comprehensive Plan Amendment (city file 15 -008) Report presented by City Planner Lindahl. Council discussed, directed staff to prepare a work plan to address the applicants concerns and to incorporate costs to amend the Comp Plan into the 2016 budget. e. Strehler Estates Sketch Plan and Topo Waiver (city file 15 -009) Report presented by City Planner Lindahl. MOTION: made by Thomas, seconded by LaFave to approve Resolution 2015 -25 "To Approve a Topography Survey Exemption for Property Located at 22900 Strehler Road (PID 17- 119- 23 -32- 0004)" as presented. Council discussed Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) f. Sign Ordinance Update proposal Report presented by City Planner Lindahl. Council discussed. MOTION: made by Thomas, seconded by LaFave to approve the staff recommendation as in the staff memo as presented. City of Corcoran City Council Meeting Minutes April 23, 2015 - 7:00 PM Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) g. Parcel Building Rights. Council discussed building rights as it relates to out lots. Staff directed to prepare a report for further discussion at the May 28, 2015 council meeting. 10. Unfinished Business - None 11. New Business a. Dirt Hauling and Grading Regulations report received, no action required. b. Strategic Goal Work Plan report presented by City Administrator Martens. Council discussed and provided staff direction to proceed with the plan as presented. c. Deputy Clerk Appointment report presented by City Administrator Martens. MOTION: made by Thomas, seconded by Hank to approve Resolution 2015 -26 "Appointing Jeanie Heinecke to the Position of Deputy Clerk" as presented. Voting Aye: Guenthner, Hank, LaFave, and Thomas (Motion carried 4:0) d. Separation Agreement report presented by City Administrator Martens and City Attorney Carson. MOTION: made by Hank, seconded by LaFave to approve the separation agreement as presented. Voting Aye: Guenthner, Hank, Keefe, LaFave and Thomas (Motion carried 4:0) Unscheduled Items -None 2015 Council Schedule Schedule received, no action required. MOTION: made by LaFave, seconded by Thomas to adjourn. Voting Aye: Guenthner, Hank, LaFave and Thomas -M$K (Motion carried 4:0) X Meeting adjourned at 9:08 pm. i April 301h, 2015 Pat Meister Public Works Supervisor City of Corcoran Public Works 9100 CO RD 19 Corcoran, MN 55340 Dear Pat Meister: Please accept this letter of resignation from my position as a City of Corcoran Public Works Maintenance Worker. Providing the standard two weeks notice my last day will be no later than, May 15thth. 2015. Thank you for the opportunity to serve the city of Corcoran. Sincerely: Eric M//enth IKZ-011 CC: Brad Martens, City Administrator/ Treasurer CITY OF CORCORAN FINANCIAL CLAIMS CHECK RANGE 23056 - 23100 Agenda Item 7a -b. Council Meeting Date: 5/11/2015 Prepared By: jheinecke Agenda Item: 7a. FUND #500 ESCROW CLAIMS Amount Paid to Amount Project name 30,640.00 Carson, Cielland & Schreder 356.25 Lennar 13 -026 12,317.84 Nagell Appraisal & Consulting 1,200,00 Sawgrass 272,74 Nagell Appraisal & Consulting 1,800.00 Sawgrass 8,279.37 Wenck Associates Inc 13,206.16 Lennar 2294 -17 2,168.68 Wenck Associates Inc 7,995.20 Lennar 13 -026 1,307.80 Tota I. 24, 557.61 1,545.17 4117/15 Total Fund #500 = $ 24,557.61 4130115 (See attached Check Detail Register) 10,726.88 Agenda Item: 7b. ALL OTHER FINANCIAL CLAIMS $ 36,066.11 5/1/15 (See attached Check Detail Register) 12,530.49 511/15 Total of Auto Deductions $ 120,491.36 5/4/15 TOTAL EXPENDITURES FOR APPROVAL $ 1811115.08 Auto Deductions 1 Electronic Fund Transfer 1 Other Disbursements Date Paid to Amount 4117115 Net Payroll PROS 30,640.00 4117115 Payroll Taxes 12,317.84 4117115 Paychex Fee 272,74 4121115 PERA 8,279.37 4121115 Citi Street - 457 Deferred Comp 2,168.68 4121115 Citi Street - Health Care Savings 1,307.80 4122115 US Bank - H S A 1,545.17 4117/15 MN Dept Rev -Fuel Tas 81.23 4130115 Blue Cross Blue Shield 10,726.88 4130115 Net Payroll PR09 -Add 31,512.08 5/1/15 Payroll Taxes 12,530.49 511/15 Paychex Fee 283.86 5/4/15 PERA 8,408,63 5/4/15 Net Payroll PR09 -Add 344.59 5/4115 Payroll Taxes 52.85 5/4/15 Paychex Fee 19.15 Total 120,491.36 Total amount not reflected in Cash Balance Report $ 4,899.71 HACity Hall Info rmatio MCITY GOVERNMENT1Council, Commissions & Committees%Council InformatioMCouncil Claims12015 Claims.As CITY OF CORCORAN CASH BALANCE REPORT April 15, 2015 Fund Description Account Current Balance Last Yr YTD Bal Cash GENERAL FUND G 100 -10100 410,967.66 20,586.31 RESERVES DONATION FUND G 201 -10100 17,077.68 13,213.28 POLICE DONATION FUND G 202 -10100 514.77 1,603.37 FIREARMS SAFETY G 204 -10100 595.70 (875.57) DWI FORFEITURE FUND G 205 -10100 16,208.68 12,144.16 DRUG FORFEITURE FUND G 206 -10100 1,170.94 1,170.23 TRUCK SAFETY G 207 -10100 2,687.42 5,864.52 ASPHALT MAINTENANCE G 305 -10100 71,595.36 71,552.40 D /S- EQUIPMENT CERTS G 309 -10100 (41,553.19) (4,202.57) CO. RD. 19 IMPROVEMENT G 310 -10100 10,046.27 10,038.61 2012B PUBLIC WORKS BOND D/S G 311 -10100 (16,149.53) 18,887.86 TAX INCREMENT FINANCING G 401 -10100 1,795,018.08 1,901,579.62 FACILITY EXPANSION D/S G 407 -10100 (10,312.53) (12,224.86) PUBLIC WORKS FACILITY G 411 -10100 87,650.35 144,678.00 PARK CAPITAL FUND - DEDICATION G 415 -10100 355,191.13 357,876.59 CAPITAL - EQUIPMENT CERTS G 416 -10100 83,272.68 250,550.69 SHANNON LANE G 417 -10100 6,684.98 (5.73) HACKAMORE UPGRADE (LENNAR) G 419 -10100 285,171.10 285,000.00 WETLAND RESTORATION G 420 -10100 100,060.04 100,000.00 HOPE CENTER G 421 -10100 (236,646.95) 0.00 ESCROW HOLDING FUND G 500 -10100 377,166.00 817,310.07 CIVIC ORGANIZATIONS G 501 -10100 6,000.09 6,000.09 WATER G 601 -10100 1,007,606.54 590,050.64 SEWER G 602 -10100 429,992.80 66,003.36 INVESTMENT CONTROL G 999 -10100 1,511.43 41.57 Total Cash 4,761,527.50 4,656,842.64 Farmers Savings Acct PARK CAPITAL FUND - MEMORIAL G 415 -10102 10,644.95 9,166.35 Change in Market Value GENERAL FUND G 100 -10105 (605.07) 0.00 Grand Total Cash 4,771,567.38 4,666,008.99 Due to Other Funds CORCORAN, MN 05/05115 1Z08 PM Page 1 *Check Detail Register© May 2015 Paid Chk# 023060 5/11/2015 CARSON, CLELLAND & SCHREDER E 100 - 41600 -300 Professional Srvs (GENERAL) Check Amt Invoice Comment 10100 Farmers State Bank CIVIL -LEGAL E 100 -42100 -304 Paid Chk# 023456 5/11/2015 ACME TOOLS 043015 CRIMINAL -LEGAL E 100 -43100 -210 Operating Supplies (GENERAL) $118.00 3316618 SUPPLIES CIVIL- LEGAL -KREPS Total ACME TOOLS $118.00 $1,638.75 Paid Chk# 023057 5/11/2015 ACTION FLEET INC G 500 -20320 Lennar Design $356.25 E 100 - 43100 -210 Operating Supplies (GENERAL) $211.43 10688 SUPPLIES $5,288.18 Total ACTION FLEET INC $211,43 Paid Chk# 023061 Paid Chk# 023058 5/11/2015 AMERICAN PRESSURE'wtmW E 100- 43100 -210 Operating Supplies (GENERAL) $125.40 85175 SUPPLIES LAND LINE Total AMERICAN PRESSURE $125.40 $52.64 Pa €d Chk# 023059 5/11/2015 CARDIAC SCIENCE CORP E100-43100-210 Operating Supplies (GENERAL) $249,00 1648120 SUPPLIES Total CARDIAC SCIENCE CORP $249.00 Paid Chk# 023060 5/11/2015 CARSON, CLELLAND & SCHREDER E 100 - 41600 -300 Professional Srvs (GENERAL) $1,009.38 043015 CIVIL -LEGAL E 100 -42100 -304 Legal Fees $2,070.05 043015 CRIMINAL -LEGAL E 100 - 41600 -300 Professional Srvs (GENERAL) $213.75 043015 CIVIL- LEGAL -KREPS E 100 -41600 -300 Professional Srvs (GENERAL) $1,638.75 043015 CIVIL- LEGAL -REORG G 500 -20320 Lennar Design $356.25 043015 LENNAR 13026 Total CARSON, CLELLAND & SCHREDER $5,288.18 Uniforms Paid Chk# 023061 5/11/2015 CENTURY LINK E 100 - 45200 -321 Telephone $52.64 042115 LAND LINE Total CENTURY LINK $52.64 Paid Chk# 023062 5/11/2015 CINTAS - 470�� E 100- 41941 -210 Operating Supplies (GENERAL) E 100 -42100 -223 Building Repair Supplies E 100 - 43100 -210 Operating Supplies (GENERAL) E 100- 43100 -417 Uniforms E 100 -41941 -210 Operating Supplies (GENERAL) E 100 -42100 -223 Building Repair Supplies E 100 -43100 -210 Operating Supplies (GENERAL) E 100-43100-210 Operating Supplies (GENERAL) E 100 -43100 -417 Uniforms E 100 -41941 -210 Operating Supplies (GENERAL) E 100 -42100 -223 Building Repair Supplies E 100 -43100 -210 Operating Supplies (GENERAL) E 100 -41941 -210 Operating Supplies (GENERAL) E 900- 43100 -417 Uniforms Total CINTAS -470 $42.62 470565249 $32.75 470565250 $0.00 470565251 $0.00 470565252 $42,62 470568558 $32.75 470568559 $49.98 470568560 $44.30 470568561 $86.98 470568562 $42,62 470571839 $32.75 470571840 $18.28 470571841 $102.54 470571842 $86.98 470571843 $615.17 CITY HALL RUGS FLOOR MATS PW RUGS PW UNIFORMS CITY HALL RUGS FLOOR MATS PW RUGS PW TOWELS PW UNIFORMS CITY HALL RUGS FLOOR MATS PW RUGS COMMUNITY CENTER PW UNIFORMS Pad Chk# 023063 5/11/2015 COMCAST- E 100 - 41941 -321 Telephone $107.32 35024671 LAND LINE CORCORAN, MN 05105/15 12:08 PM Page 2 *Check Detail Register@ May 2015 Paid Chk# 023072 5111 /2015�MARTENS, BRAD E 100 -41300 -210 Operating Supplies (GENERAL) $50.00 0415 EXP CELL PHONE -APRIL E100-41300-210 Operating Supplies (GENERAL) $50,00 0415 EXP CELL PHONE -MARCH Total MARTENS, BRAD $100.00 Paid Chk# 023073 5/11/2015 MCPA m, .......... ,. ".,.. E 100 -42100 -433 Dues and Memberships _$45.00 GOTTSCHALK ANNUAL DUES Total MCPA $45.00 Paid Chk# 023074 5/11/2015 MENARDS MAPLE E 100- 43100 -210 Operating Supplies (GENERAL) $94.80 56912 SUPPLIES Check Amt Invoice Comment E 100 -42100 -321 Telephone $107,32 35024671 LAND LINE E 100 - 43100 -321 Telephone $107.32 35024671 LAND LINE Total COMCAST- 902943336 $321.96 Paid Chk# 023064 5/11/2015 CORCORAN E204-42100-210 Operating Supplies (GENERAL) $120.00 2550 SUPPLIES Total CORCORAN LOCKER $120.00 Paid Chk# 023065 5/1112015 CROW RIVER NEWS E 100 -41941 -210 Operating Supplies (GENERAL) $35.00 2015 ANNUAL SUBSCRIPTION Total CROW RIVER NEWS $35.00 Paid Chk# 023066 5/11/2015 GENERAL SPRINKLER CORP�, E 100- 43100 -223 Building Repair Supplies $900.00 16150 ANNUAL INSPECTION Total GENERAL SPRINKLER CORP $900.00 Paid Chk# 023067 5/91/2015 GOTTSCHALK, MATT E416-42100-550 Motor Vehicles $85.89 0415 EXP SQUAD #561 E 100 -42100 -208 Training and Instruction ($56.18) 0415 EXP REFUND Total GOTTSCHALK, MATT $29.71 Paid Chk# 023068 5111!2015 HOLIDAY STATION STORES E 100 -42100 -220 Repair /Maint Supply (GENERAL) $50.00 050115 PRE PAID CAR WASH Total HOLIDAY STATION STORES $50.00 Paid Chk# 023069 5/11/2015 1 -94 WEST CHAMBER E 100 -41900 -210 Operating Supplies (GENERAL) $40.00 3221 MEETING E 10042100 -208 Training and Instruction $40.00 3221 MEETING Total 1 -94 WEST CHAMBER $80.00 Paid Chk# 023070 5/11/2015 KENNEDY 8 GRAVEN, E 401- 41900 -300 Professional Srvs (GENERAL) $148,00 125400 LEGAL Total KENNEDY & GRAVEN, CHARTERED $148,00 Paid Chk# 023071 5/11/2015 KUDOS AWARDS !NC E 204- 42100 -210 Operating Supplies (GENERAL) $66.30 15445 SUPPLIES Total KUDOS AWARDS INC $66.30 Paid Chk# 023072 5111 /2015�MARTENS, BRAD E 100 -41300 -210 Operating Supplies (GENERAL) $50.00 0415 EXP CELL PHONE -APRIL E100-41300-210 Operating Supplies (GENERAL) $50,00 0415 EXP CELL PHONE -MARCH Total MARTENS, BRAD $100.00 Paid Chk# 023073 5/11/2015 MCPA m, .......... ,. ".,.. E 100 -42100 -433 Dues and Memberships _$45.00 GOTTSCHALK ANNUAL DUES Total MCPA $45.00 Paid Chk# 023074 5/11/2015 MENARDS MAPLE E 100- 43100 -210 Operating Supplies (GENERAL) $94.80 56912 SUPPLIES CORCORAN, MN 05/05/15 12:08 PM Page 3 `Check Detail Register@ May 2015 Check Amt Invoice Comment E60149400-210 Operating Supplies (GENERAL) $8.57 56933 SUPPLIES E 100 -43100 -210 Operating Supplies (GENERAL) $49.01 56975 SUPPLIES E20142100-210 Operating Supplies (GENERAL) $90.68 57414 SUPPLIES Total MENARDS MAPLE GROVE $243.06 T Paid Chk# 023075 5/11/2015 MILLER CHEVROLET E 10043100 -220 Repair /Maint Supply (GENERAL) $30.50 130704 SUPPLIES Total MILLER CHEVROLET $30.50 Pad Chk # - 023076 5/11/2015 MIMBACH FLEET SUPPLY INC -, -- WpwM—, "- -' - l-- --- - -- - ,- 1- ,1-- l' - -��- -111.1 E 10043100 -220 RepairlMaint Supply (GENERAL) $223,32 104745 PARTS Total MIMBACH FLEET SUPPLY INC $223.32 Paid Chk# 023077 5/11/2015 MINNESOTA EQUIPMENT E 10045200 -210 Operating Supplies (GENERAL) $10.42 P72876 PARTS Total MINNESOTA EQUIPMENT $10.42 Paid Chk# 023078 5/11/2015 MINNESOTA RURAL WATER ASSOC��m.w.�u. E 60149400 -433 Dues and Memberships $275.00 2015 ANNUAL DUES Total MINNESOTA RURAL WATER ASSOC $275.00 ,P� Ck�79 5/105 NAGELL APPRAISAL —& CO NSULTING .. .................. G 500 -20360 Schendel Property 14 -027 $1,200.00 22409 APPRAISAL SERVICE G 500 -20360 Schendel Property 14 -027 $1,800.00 22410 APPRAISAL SERVICE Total NAGELL APPRAISAL & CONSULTING $3,000.00 PaidChk# 023080 5/11/2015 NAPA E 10043100 -210 Operating Supplies (GENERAL) $21.04 3872 SUPPLIES E 100- 43100 -210 Operating Supplies (GENERAL) $93.89 4721 SUPPLIES Total NAPA AUTO PARTS - CORCORAN $114.93 .Paid Chk# @23081 5/11/2015 NORTHERN TOOL & EQUIPMENT E10043100-210 Operating Supplies (GENERAL) $42.90 193041374 SUPPLIES E 10043100 -210 Operating Supplies (GENERAL) $24.90 193042514 SUPPLIES Total NORTHERN TOOL & EQUIPMENT $67.80 Pald Chk# 023082 5/11120 15 NORTHLAND TRUST SERVICES E 30947000-610 Interest $5,609.25 2008A -2015 BOND INTEREST Total NORTHLAND TRUST SERVICES $5,609.25 Paid Chk# 023083 5/11/2015 OFFICE DEPOT E 10042100 -200 Office Supplies (GENERAL) $21.99 764839774001 SUPPLIES E 100- 42100 -200 Office Supplies (GENERAL) $30.75 764839921001 SUPPLIES E 100 -42100 -200 Office Supplies (GENERAL) $16.99 764839922001 SUPPLIES E 10041941 -200 Office Supplies (GENERAL) $40.98 766082410001 SUPPLIES E 10042100 -200 Office Supplies (GENERAL) $34.64 766082625001 SUPPLIES E 10042100 -200 Office Supplies (GENERAL) $67.99 766082626001 SUPPLIES E 100 - 42100 -200 Office Supplies (GENERAL) $95.13 767006724001 SUPPLIES CORCORAN, MN 05/05/15 12:08 PM Page 4 *Check Detail Register© May 2015 E 204 -42100 -210 Operating Supplies (GENERAL) E 100 - 42100 -210 Operating Supplies (GENERAL) E 100 - 42100 -208 Training and Instruction Total RYAN BURNS $3,120.88 0415 EXP FAS SUPPLIES $59.00 0415 EXP MEALS $79.67 0415 EXP MILEAGE/MEALS $3,259.55 E 100- 43100 -321 Telephone $244.13 391283315161 CELL SERVICE Total SPRINT $244.13 Paid Chk# 023089 5/11/2015 STREICHER S POLICE EQUIPMENT E 100 -42100 -417 Uniforms Check Amt Invoice Comment UNIFORM -PT Total OFFICE DEPOT $308.47 $28.99 11147564 Paid Chk# 023084 5/11/2015 RAN DYS SANITATION Uniforms $74.99 11148026 E 100 -45200 -380 Utility & Services (GENERAL) $197.21 110391504 PARKS GARBAGE 11039 E 100 - 43100 -210 Operating Supplies (GENERAL) $260.53 121121491504 PUBLIC WORKS GARBAGE (9100) 12 E 100- 41941 -380 Utility & Services (GENERAL) $210.25 12803511504 CITY HALL GARBAGE 1280351 E 100- 43232 -300 Professional Srvs (GENERAL) $5,853.25 12803511504 MONTHLY RECYCLING Total RANDYS SANITATION $6,521.24 Paid Chk# 023085 5/11/2015 ROLF ERICKSON ENTERPRISES INC E 100-41550-300 Professional Srvs (GENERAL) $4,677.19 042715 MONTHLY ASSESSING FEE E100-41550-210 Operating Supplies (GENERAL) _$63.47 042715 FORMS AND SUPPLIES Total ROLF ERICKSON ENTERPRISES INC $4,740.66 Paid Chk# 023086 5/11/2015 RTS DRUG TESTINGm E 100- 43100 -210 Operating Supplies (GENERAL) $100.00 6122 DOT TESTING Total RTS DRUG TESTING $100.00 Paid Chk# 023087 5/11/2015 RYAN BURNS E 204 -42100 -210 Operating Supplies (GENERAL) E 100 - 42100 -210 Operating Supplies (GENERAL) E 100 - 42100 -208 Training and Instruction Total RYAN BURNS $3,120.88 0415 EXP FAS SUPPLIES $59.00 0415 EXP MEALS $79.67 0415 EXP MILEAGE/MEALS $3,259.55 E 100- 43100 -321 Telephone $244.13 391283315161 CELL SERVICE Total SPRINT $244.13 Paid Chk# 023089 5/11/2015 STREICHER S POLICE EQUIPMENT E 100 -42100 -417 Uniforms $65.99 11147412 UNIFORM -PT E 100 -42100 -417 Uniforms $28.99 11147564 UNIFORM -FT E 100 - 42100 -417 Uniforms $74.99 11148026 UNIFORM -PT E 100 - 42100 -417 Uniforms $109.99 111.49113 UNIFORM -PT Total STRETCHERS POLICE EQUIPMENT $279,96 Paid Chk# 023090 5/11/2015 TEAMSTER LOCAL G 100 -21707 Union Dues $228.96 0515 UNION DUESITLDF Total TEAMSTER LOCAL 320 $228.96 Paid Chk# 023091 5/11/2015 TEGRETE, E 100 - 41941 -400 Repairs & Maint Cont (GENERAL $365.00 54671 MONTHLY CITY HALL CLEANING Total TEGRETE $365.00 Paid Chk# 023092 5/11/2015 THREE RIVERS PARK DISTRICT R 100 -42400 -32210 Bldg /Plan Review Fees $31.91 2015 -56 PERMIT REFUND Total THREE RIVERS PARK DISTRICT $31.91 .,..,,w ... Paid Chk# 023093 5/11/2015 US BANKCORP EQUIPMENT FINANCE�iVmm �mp' E 100- 42100 -200 Office Supplles (GENERAL) $119.57 277708178 COPIER CORCORAN, MN 05/05/15 12:08 PM Page 5 'Check Detail Register@ May 2015 Check Amt Invoice Comment otal US BANKCORP EQUIPMENT FINANCE $119.57 Paid Chk# 023094 5/11/2015 VERIZON E 100-42100-321 Telephone $29.74 9743937392 CELL SERVICE Total VERIZON WIRELESS $29.74 .W. Paid Chk# 023095 5/11/2015 VETS CH -PLUM BIN G SERVICE R 100- 42400 -32210 Bldg /Plan Review Fees $75.00 2015 -41 PERMIT REFUND Total VETSCH PLUMBING SERVICE $75.00 E 204 -42100 -210 Operating Supplies (GENERAL) $26.79 0515 EXP SUPPLIES Total WARREN, STEVE $26.79 Paid Chk# 023097 5/11!2015 WENCK ASSOCIATES, INC. E 601- 49400 -303 Engineering Fees $157.50 11501862 GENERAL ENGINEERING E 100- 43170 -300 Professional Srvs (GENERAL) $62.00 11501862 KREPS GRADING E 100 - 43170 -300 Professional Srvs (GENERAL) $159.00 11501862 MEETINGSIADMIN E 100-43170-300 Professional Srvs (GENERAL) $601.00 19501862 MN DOT STATE AID E 100-43170-300 Professional Srvs (GENERAL) $285.20 11501862 PLANNING E 100 -43170 -300 Professional Srvs (GENERAL) $678.00 11501862 STORMWATER/WCA E 601 -49400 -303 Engineering Fees $449.50 11501863 SEWER WATER PLANNING E 602 -49450 -303 Engineering Fees $449.50 11501863 SEWER WATER PLANNING G 500 -20335 Lennar Eng Plan Review /Modific $13,206.16 11501864 LENNAR 2294 -17 G 500 -20320 Lennar Design $7,995.20 11501865 LENNAR 13 -026 E 601- 49400 -303 Engineering Fees $186.90 11501866 WATERMAIN CSAH 101 E 601- 49400 -303 Engineering Fees $472.50 11501867 WATERMAIN CSAH 101 Total WENCK ASSOCIATES, INC. $24,702.46 Paid Chk# 023098 5/11/2015 WESTSIDE WHOLESALE TIRE " " "" "' ". ""'` "`" E 100 -43100 -225 Landscape /Ditch Materials $13.50 743140 DISPOSAL E100-43100-220 Repair /Maint Supply (GENERAL) $74_.22 743610 PARTS Total WESTSIDE WHOLESALE TIRE $87.72 Paid Cl1k# 023099 5/17/2075 WHITE, JUSTIN E 204- 42100 -210 Operating Supplies (GENERAL) $551.20 051.5 EXP SUPPLIES Total WHITE, JUSTIN $551.20 Paid Chk# 023100 511112015 XCEL ENERGY E 100- 43100 -380 Utility & Services (GENERAL) $821.29 453852918 UTILITIES -9100 Total XCEL ENERGY $821.29 10100 Farmers State Bank $60,623.72 CORCORAN, MN 05/05/15 12:08 PM Page 6 *Check Detail Register@ May 2015 Check Amt Invoice Comment Fund Summary 10100 Farmers State Bank 100 GENERAL FUND $24,247.65 201 RESERVES DONATION FUND $90.68 204 FIREARMS SAFETY $3,885.17 309 DIS- EQUIPMENT CERTS $5,609.25 401 TAX INCREMENT FINANCING $148.00 416 CAPITAL - EQUIPMENT CERTS $85.89 500 ESCROW HOLDING FUND $24,557.61 601 WATER $1,549.97 602 SEWER $449.50 $60,623,72 City of Corcoran Consultant Summary May 11, 2015 Name Invoice Date Check # Amount Due Carson, Clelland & Schreder 04/30/15 23060 5,288.18 Kennedy & Graven 04121115 23070 148.00 Rolf Erickson Enterprises 04/27/15 23085 4,740.66 Wenck Associates Inc 04/27/15 23097 24,702.46 Total 34,879.30 HACity Hall Information\CITY GOVERNMENT1Council, Commissions & Committees\Council Inform ation\Council Claims12015 Claims.xls MAY - 12015 Carson, Clelland & Schreder -- ' ATTORNEYS AT LAIN --- - 6300 SHINGLE CREEK PARKWAY STE 305 MINNEAPOLIS, MN 55430 -2190 (763)- 561 -2800 April 30, 2015 CITY OF CORCORAN 8200 CO RD 116 CORCORAN, MN 55340 Professional Services Amount ..Civil 3/31/2015 Edit draft ordinance, correspond with City, update file 71,25 4/3/2015 Review code amendments, correspond with City, update file 47.50 4/9/2015 Work on RFP for recycling and correspondence to Jeanie 71,25 4117/2015 Recycling RFP -- Review RFP language, conference with Jeanie 47,50 4/23/2015 Prepare for meeting; correspondence to City Council regarding separation agreement and 142.50 correspondence to Brad Attend city council meeting 332.50 4/27/2015 Review /research city code and state statutes regarding proposed ordinance amendment, 249.38 conference with attorney Carson regarding open files, draft ordinance amendment, correspond with City, update files Conference with John Thames regarding beer and park issue 47,50 SUBTOTAL: [ 1,009.38] . Krel2s 4/10/2015 Conference with Brad, note to all parties regarding access to information from City 71.25 4/16/2015 Review all ema €Is relating to post -trial issues; review correspondence from attorneys and 142.50 data requests from M. Lee and correspondence to Jeanie SUBTOTAL: [ 213.751 ,Lennar & Sewer and Water 4/1412015 Phase 2-- Review of development agreement and correspondence to Kendra 356.25 SUBTOTAL: [ 356.25] CITY OF CORCORAN Page 2 Amount Re- organization 41112015 Review resolution from Brad regarding re- organization and conference with Brad 71.25 4/9/2015 Review issues relating to separation, COBRA and conference with Brad 71.25 4/17/2015 Review issues relating to separation agreement and prepare for meeting with Brad on 4120 142.50 4/20/2015 Review of file, conference with Brad and draft separation agreement 285.00 4/21/2015 Revise separation agreement 142.50 4/22/2015 Meet with Brad and Mayor and review separation agreement, revise and meet with 641.25 personnel at city hall, conference with Brad regarding revised agreement 4/24/2015 Meeting with Brad and Jill at city hail and review of separation agreement 285.00 SUBTOTAL: [ 1,638.75) Criminal 3/31/2015 Correspond with defense attorneys, note files, review files in preparation for 411 32.50 arraignmentlpretrial calendar at Brookdale court 4/1/2015 Handle arraignment/pretrial calendar at Brookdale court 73.13 4/4/2015 Begin preparation for 416 jury trials, review of files 48.75 4/5/2015 Additional preparation for 416 jury trials 97.50 4/612015 Review files in preparation for 417 calendar at Brookdale court 24.38 Review files /discovery in preparation for 417 calendar at Brookdale 24.38 Attend jury trial hearings downtown 195.00 Review and respond to emalls from victim advocate 48.75 4/7/2015 Attend arraignment and pretrial hearings 48.75 Review discovery, review files in preparation for 418 arraignment /pretrial calendar at 32.50 Brookdale court Prepare disposition letter regarding 416 cases 16.25 4/8/2015 Handle arraign mentlpretrial calendar at Brookdale court 97.50 Review reports and request for complaint 24.38 4/9/2015 Preparation of one complaint 40.00 Review discovery, correspond with defense attorneys, court, identify witnesses for jury trials, 65.00 correspond with victims, dictate disposition letters, note files Schedule upcoming jury trials, review cases in MNCIS 3250 4/10/2015 Correspond with court, defense attorneys, victims, witnesses, review discovery, identify 48.75 witnesses for jury trials, dictate disposition letters, note files 4/13/2015 Review discovery, correspond with defense attorneys, note files, jury trial preparation, review 32.50 files in preparation for 4/14 arraignment/pretrial calendar at Brookdale court 4/1412015 Discuss on -call question 24.38 Handle arraignment/pretrial calendar at Brookdale court 73.13 Preparation for upcoming cases, review files 16.25 4/15/2015 Preparation of one complaint 40.00 Attend arraignments and pretrial hearings at Brookdale 48.75 4/21/2015 Review discovery, correspond with defense attorneys, court, probation, note files, review 48.75 files in preparation for 4122 arraignment/pretrial calendar at Brookdale court Attend arraignment/pretrial hearings 24.38 4/22/2015 Speak with defendant regarding charges 48.75 Handle arraign ment/pretrial/i n-cu stody calendar at Brookdale court 73.13 CITY OF CORCORAN 4/23/2015 Correspond with defense attorneys, court, review discovery, note files 4/24/2015 Review emails regarding criminal case 4/27/2015 Preparation for 4128 cases Open criminal files, preparation of criminal complaints; preparation of cases for court calendars, including court and jury trials; contact and notice to witnesses for trial testimony, prepare outgoing discovery requests, complete incoming discovery requests for monthly period Open criminal files, preparation of criminal complaints; preparation of cases for court calendars, including court and jury trials; contact and notice to witnesses for trial testimony, prepare outgoing discovery requests, complete incoming discovery requests for monthly period Open criminal files, preparation of criminal complaints; preparation of cases for court calendars, including court and jury trials; contact and notice to witnesses for trial testimony, prepare outgoing discovery requests, complete incoming discovery requests for monthly period SUBTOTAL: For professional services rendered Previous balance 4/14/2015 Payment - thank you Total payments and adjustments Balance due Page 3 Amount 48.75 24.38 32.50 271.88 131.25 181.25 j 2,070,05] $5,288.18 $3,891.92 ($3,891,92) ($3,891.92) $5,288.18 1 hereby declare under the penalties of perjury that the foregoing statement for legal services is just and correct and that no part thereof has been paid.. Jeffrq, arson, City Attorney � APR 2 3 ZU15 Kennedy & Graven, Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337 -9300 41- 1225694 April 21, 2015 Statement No. 125400 City of Corcoran, MN. 8200 County Road 116 Corcoran, MN 55340 -9303 Through March 31, 2015 CR100 -00004 General 148.00 Total Current Billing; 148.00 I declare, under penalty of law, that this account, claim or demand is just and correct and that no part of it has been paid. 44 ��-4 Signature of —Z4 Clai nt Page: 1 Kennedy & Graven, Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 City of Corcoran, MN. April 21, 2015 CR100 -00004 General Through March 31, 2015 For All Legal Services As Follows: Hours Amount 3/9/2015 MNI Corcoran conference call with T Omdal, city administrator 0.80 148.00 regarding possible uses of pooled TIF from downtown TIF district. Total Services: $ 148.00 Total Services and Disbursements: $ 148.00 APR 28 2015 STATEMENT 27 -Apr -15 ROLF ERICKSON ENTERPRISES, INC. SOUTWEST ASSESSING P O BOX 47841 PLYMOUTH, MN 55447 CITY OF CORCORAN 8200 Co. Rd. 116 CORCORAN, MN 55340 APRIL 2015 ASSESSING FEE COUNTY DATA FEE POSTAGE REVALUAITON NOTICE POSTCARDS $4,663.00 $14.19 $16.32 $47.15 TOTAL $4,740.66 APR 29 2015 WENCK Responsive partner. Exceptional outcomes. April 27, 2015 Mr. Bract Martens City Administrator City of Corcoran 8200 County Road 116 Corcoran, MN 55340 RE: Wenck's March 2015 Invoices Dear Brad: Enclosed are our invoices for March 2015. Unbilled time totaled 11 hours last month and includes meeting and preparation time, office time and developer spec review, and retrieval of Public Works bids. Engineering items included continued work on the City's stormwater permit program, particularly related to cataloging stormwater features and developing educational materials; and updating the MNDOT State Aid system regarding eligible roads. The summary table on the next page separates city expenses from escrow amounts. More details about each line item can be found on individual invoices. If you have any questions as you review this letter or our invoices, please contact me at 763-479 -4209, ktorve @wenck.com, or at City Hall. Sincerely, Wenck Associates, Inc. Kent Torve, P. E. Principal [enc: March 2015 Invoices] Wenck Associates, Inc. 1 1800 Pioneer Creek Center I P.O, Box 249 I Maple Plain, MN 55359 -0249 Oat free 800- 4722232 Ma n 763- 479 -4200 F ma l . wenckmp @wenck.com Web wenck.com Mr. Brad Martens City Administrator City of Corcoran April 27, 2015 City of Corcoran March 2015 Invoices Invoice # Wenck Phase Project name project # # 11501862 2294-01 General Engineehn Senrlces 500 -02 1 Council Meetings and Engineering Adm. 500 -03 Plannin -Meetings 600 -01 Stormwater /WCA General Tasks 700 -01 MnDOT State Aid 800 -09 Kre s Grading Permit r7ni' ' aA Qnn -1 Q Inr� +-o, i t+illi— . e.,orsl rn..i,.o—l- 10 1 roject Closeout/GIS Watermaln CSAH 1.D1 Preliminary Survey, Wetlands, Utilities, 100 Easements WENCK IMEMUM Responsive partner. Exceptional outcomes. Amount I Total 678.00 601.00 62.00 157.50 SUBTOTAL $899.00 SUBTOTAL 899.00 1 400 Construction 157.50 SUBTOTAL $186.90 11501867 229421 Watermain CSAH 1D1 400 Initial Construction Plan En ineerin $472.50 SUBTOTAL $472.50 C1rTY PRO]EGTs TOTAL $3,501.10 *=: m i:. "� >•t t,Y�.xs�,��� l,- s wxt -. ss a kla� yt,.a a w ;F �. . nR .�.� a �� �'3'�,.�, Sty ,r�j$�,wa �� { <� ,4 a .�,� Invoice # Wenck Phase # Project name (Escrow Number) Amount Total project # :.11501864:.::::::..::2294-17: Lennar Development (G /L #500 - 20335) 100 Engineering & Project Coordination 26636 200 Construction Plan Reviews and Approvals $11,090.50 400 Stormwater Wetland Restoration &1 Qeo jn KIDWIRVI Plan Engineeri 900 Construction I 950 Proiect Cioseo SUBTOTAL 7 995.20 CROW PROJECTS SUBTOTAL $21,.201.36 FEBRUARY 2015 TOTAL $24,702.46 2 T.\2294- Ccrcorantlnvo :ces and budget ;Tacker etc \2015 \MA ,cn \Marcy ?015 cover Entter,doex "ld V Invoiece April 10, 2015 Invoice No; 11501862 VAA V WENCK City of Corcoran Responsive partner. p p 8200 County Road 116 Corcoran, MN 55340 Exceptional outcomes. Project Manager Kent Torve Project 2294 -01 Corcoran General Engineering Services Professional Services Through March 31, 2015 Phase 500 -02 Council Meetings and Engineering Administrative .W e. Professional Personnel Hours Rate Amount Nelson, Susan .50 70.00 35.00 Torve, Kent 1.00 124.00 124.00 Totals 1.50 159.00 Totai Labor 159.00 Phase Total $159.00 - Phase 500 -03 i -- - - Planning Meetings . _! ^----- .,. ..... ---- .r -__ #-- Professional Personnel Hours Rate Amount Torve, Kent 2.30 124.00 285.20 Totals 2.30 285.20 Total Labor 285,20 Phase Total $285.20 ------------------------------------------ Phase 600 -01 Stormwater /WCA General Tasks .W Professional Personnel Hours Rate Amount Nelson, Susan 9.40 70.00 658.00 Totals 9.40 658.00 Total Labor 658.00 Unit Billing Geographic Information System 2.0 Units @ 10.00 20.00 Total Units 20.00 20.00 Phase Total $678.00 -------------------------------------------------- Phase 700 -01 MnDOT State Aid Professional Personnel Hours Rate Amount Claridge, Dale 1.00 151.00 151.00 Terhaar, Edward 3.00 150.00 450.00 Totals 4.00 601.00 Total Labor 601.00 Phase Total $601.00 INVOICES ARE DUE UPON PRESENTATION. Subject to 1 -1/2% 18% Annum interest /finance charge. Please reference the invoice number when sending payment. Federal Tax ID #41- 1520095 Wenck Associates, Inc. - 1800 Pioneer Creek Center - PO Box 249 - Maple Plain, MN 55359 -0249 Toll Free 800 - 472 -2232 Main 763- 479 -4200 E -mail accounting @wenck.com Web www.wenck.com Project 2294 -01 Corcoran General Engineering Services Invoice 11501862 Phase 800 -09 Kreps Grading Permit Professional Personnel Hours Rate Amount Torve, Kent .50 124.00 62.00 Totals .50 62.00 Total Labor 62.00 Phase Total $62.00 -- — — — — — — — — — — — — Phase 800 -18 — — — — — — — — — — — — — Water Utility General Engineering — — — — — — — — — — — — — — — — — —• Professional Personnel Hours Rate Amount Mattson, Kevin 1.50 105.00 157.50 Totals 1.50 157.50 Total Labor 157.50 Phase Total $157.50 Total Invoice Amount $1,942.70 INVOICES ARE DUE UPON PRESENTATION. Subject to 1 -1/2% 18% Annum interest /finance charge. Page 2 Please reference the invoice number when sending payment. Federal Tax ID #41- 1520095 Wenck Associates, Inc. - 1800 Pioneer Creek Center - PO Box 249 - Maple Plain, MN 55359 -0249 Toll Free 800 -472 -2232 Main 763 - 479 -4200 E -mail accounting @wenck.com Web www.wenck.com invoice V ^AV April 10, 2015 Invoice No: 11501863 WENCK Brad Martens Responsive partner, p p City of Corcoran — `i - 8200 County Road 116 Exceptional outcomes. Corcoran, MN 55340 Project Manager Kent Torve Project 2294 -10 Sewer and Water Planning 1Professional Services Through March 2015 „11, — Phase 10 PROJECT CLOSEOUT — — — — `i - - — — -- -- ,........ — i Professional Personnel Hours Rate Amount Louwagie, Shawn 3/26/2015 2.50 92.00 230.00 2012 Sanitary Structure quote Noreen, Adam 3/26/2015 2.50 99.00 247.50 2012 Sewer Manhole Adjustment Schmidt, Rowdy 3/3/2015 1.00 95.00 95.00 GIS inforamtion Schmidt, Rowdy 3/6/2015 .50 95.00 47.50 estimate to hook up Maple estates to sewer and water Schmidt, Rowdy 3/13/2015 2.00 95.00 190.00 seeding / punchlist Shuck, Jordan 3/3112015 1.00 89.00 89.00 Adding pics to manholes in GIS, prep for meeting Totals 9.50 899.00 Total Labor 888.00 Phase Total $899.00 Total Invoice Amount $899.00 INVOICES ARE DUE UPON PRESENTATION, Subject to 1 -1/20/6 181/o Annum interest /finance charge. Please reference the invoice number when sending payment, Federal Tax ID #41- 1520095 Wenck Associates, Inc. - 1800 Pioneer Creek Center - PO Box 249 - Maple Plain, MN 55359 -0249 Toll Free 800- 472 -2232 Main 763 - 479 -4200 E -mail accounting @ wen ck,com Web www.wenck.com Invoice April 10, 2015 Invoice No: 11501864 Brad Martens City of Corcoran 8200 County Road 116 Corcoran, MN 55340 Project 2294 -17 Lennar Development Professional services Through March, 2015 Phase 100 Engineering & Project Coordination Professional Personnel Mattson, Kevin Totals Total Labor Reimbursable Expenses Mileage - Reimbursable Total Reimbursables V^V WENCK Responsive Partner. Exceptional outcomes. Project Manager Kent Torve Hours Rate Amount 2.00 105.00 210.00 2.00 210.00 210.00 56.36 56.36 56.36 Phase Total $266.36 -------_......,............ m....-.........,...--...-.........,.,....,...... .............. ...,...,.......,....----- - - - - -- Phase 200 Construction Plan Reviews and Approvals Professional Personnel Phase Total $11,090.50 ------------....,....,.....,....,...»., ............................... --... - - - - - - - - - - - - - - - -• Phase 400 Stormwater Wetland Restoration Professional Personnel Hours Rate Amount Hegland, Steven 14.50 92.00 1,334.00 Louwagie, Shawn 6.50 92.00 598.00 Marketon, Jeanie .60 60.00 36.00 Mattson, Kevin 22.00 105.00 2,310.00 Noreen, Adam 1.00 99.00 99.00 Pate -Holt, Mary 6.80 73.00 496.40 Quisberg, Jason 15.00 137.00 2,055.00 Schmidt, Rowdy 21.50 95.00 2,042.50 Shuck, Jordan 4.00 89.00 356.00 Templin, Kirby 10,20 72.00 734.40 Torve, Kent 8.30 124.00 1,029.20 Totals 110.40 11,090.50 Total Labor 11,090.50 Phase Total $11,090.50 ------------....,....,.....,....,...»., ............................... --... - - - - - - - - - - - - - - - -• Phase 400 Stormwater Wetland Restoration Professional Personnel INVOICES ARE DUE UPON PRESENTATION. Subject to 1 -1/2% 18 % Annum interest /finance charge. Please reference the invoice number when sending payment. Federal Tax ID #41- 1520095 Wenck Associates, Inc. - 1800 Pioneer Creek Center - PO Box 249 - Maple Plain, MN 55359 -0249 Toll Free 800 -472 -2232 Main 763 - 479 -4200 E -mail accounting @wenck,com Web www.wenck.com Hours Rate Amount Jonett, Lucius 5.60 112.00 627.20 Kaczmarek, Hagen 2.10 73.00 153.30 Matthiesen, Edward 2.30 165.00 379.50 INVOICES ARE DUE UPON PRESENTATION. Subject to 1 -1/2% 18 % Annum interest /finance charge. Please reference the invoice number when sending payment. Federal Tax ID #41- 1520095 Wenck Associates, Inc. - 1800 Pioneer Creek Center - PO Box 249 - Maple Plain, MN 55359 -0249 Toll Free 800 -472 -2232 Main 763 - 479 -4200 E -mail accounting @wenck,com Web www.wenck.com Project 2294 -17 Lennar Development Invoice 11501864 Mattson, Kevin 1.00 105.00 105.00 Pate -Holt, Mary 4.10 73.00 299.30 Schmidt, Rowdy 3.00 95.00 285.00 Totals 18.10 1,849.30 Total Labor 1,849.30 Phase Total $1,849.30 Total Invoice Amount $13,206.16 INVOICES ARE DUE UPON PRESENTATION. Subject to 1 -1/2% 18% Annum interest /finance charge. Page 2 Please reference the invoice number when sending payment. Federal Tax ID #41- 1520095 Wenck Associates, Inc. - 1800 Pioneer Creek Center - PO Box 249 - Maple Plain, MN 55359 -0249 Tail Free 800- 472 -2232 Main 763 -479 -4200 E -mail accounting @wenck.com Web www.wenck.com Invoice April 10, 2015 Invoice No: 11501865 Brad Martens City of Corcoran 8200 County Road 116 Corcoran, MN 55340 Project Manager Project 2294 -18 Southeast District Sewer and Water Project Professional Services Through March 31, 2015 Phase 400 Initial Construction Plan Engineering Professional Personnel V^V 'k WENCK Responsive partner. Exceptional outcomes. Kent Torve Hours Rate Amount Claridge, Dale 1.00 151.00 151.00 Totals 1.00 151.00 Total Labor 151.00 Phase Total $151.00 .—.,......,....,.--------------------------------- -...,......,.,... -- .......,.., Phase 900 Construction Inspection Professional Personnel Total Labor 2,512.50 Phase Total $2,512.50 Phase 950 Project Closeout Professional Personnel Hours Rate Amount Daniels, Peter 3,00 97.00 291.00 Hegland, Steven 4.00 92.00 368.00 Mattson, Kevin 17.00 105.00 1,785.00 Quisberg, Jason .50 137.00 68.50 Totals 24.50 89.00 2,512.50 Total Labor 2,512.50 Phase Total $2,512.50 Phase 950 Project Closeout Professional Personnel INVOICES ARE DUE UPON PRESENTATION. Subject to 1 -1/2% 18% Annum interest /finance charge. Please reference the invoice number when sending payment. Federal Tax ID #41- 1520095 Wenck Associates, Inc. - 1800 Pioneer Creek Center - PO Box 249 - Maple Plain, MN 55359 -0249 Tall Free 800 - 472 -2232 Main 763 - 479 -4200 E -mail accounting @wenck.com Web www.wenck.com Hours Rate Amount Claridge, Dale 11.50 151.00 1,736.50 Louwagie, Shawn 16.10 92.00 1,481.20 Nelson, Susan 1.50 70.00 105.00 Shuck, Jordan 17.00 89.00 1,513.00 Torve, Kent 4.00 124.00 496.00 Totals 50.10 5,331.70 Total Labor 5,331.70 Phase Total $5,331.70 Total Invoice Amount $7,995.20 INVOICES ARE DUE UPON PRESENTATION. Subject to 1 -1/2% 18% Annum interest /finance charge. Please reference the invoice number when sending payment. Federal Tax ID #41- 1520095 Wenck Associates, Inc. - 1800 Pioneer Creek Center - PO Box 249 - Maple Plain, MN 55359 -0249 Tall Free 800 - 472 -2232 Main 763 - 479 -4200 E -mail accounting @wenck.com Web www.wenck.com invoice April 10, 2015 Invoice No: 11501866 Brad Martens City of Corcoran 8200 County Road 116 Corcoran, MN 55340 Project Manager Project 2294 -20 CSAH 101 and Gleason Road Turn Lanes ^Ak WENCK Responsive partner, Exceptional outcomes. Kent Torve Professional SenriceS_Through March 31, 2015 — Phase 100 Preliminary Survey, Wetlands, Utilities and Easements .W W. 0 Professional Personnel Boil, Wesley Totals Hours Rate Amount .30 98.00 29.40 .30 29.40 Total Labor 29.40 Phase Total $29.40 -------------------------------------------------- . Phase 400 Construction Professional Personnel Mattson, Kevin Totals Total Labor Hours Rate Amount 1.50 105.00 157.50 1.50 157.50 Phase Total Total Invoice Amount INVOICES ARE DUE UPON PRESENTATION. Subject to 1 -1/2% 18% Annum interest /finance charge. Please reference the invoice number when sending payment. Federal Tax ID #41- 1520095 Wenck Associates, Inc. - 1800 Pioneer Creek Center - PO Box 249 - Maple Plain, MN 55359 -0249 Tall Free 800 -472 -2232 Main 763 - 479 -4200 E -mail accounting @wenck.com Web www.wenck.com 157.50 $157.50 $186.90 Invoice April 10, 2015 Invoice No: 11501867 Brad Martens City of Corcoran 8200 County Road 116 Corcoran, MN 55340 Project 2294 -21 Watermain CSAH 101 Profes i n i Services Thr u h March 31 2015 Phase 400 Initial Construction Plan Engineering Professional Personnel VAV WENCK Responsive partner. Exceptional outcomes. Project Manager Kent Torve Hours Rate Amount Mattson, Kevin 4.50 105.00 472.50 Totals 4.50 472.50 Total Labor 472.50 Phase Total $472.50 Total Invoice Amount $472.50 INVOICES ARE DUE UPON PRESENTATION. Subject to 1 -1/2% 18% Annum interest /finance charge. Please reference the invoice number when sending payment. Federal Tax ID #41- 1520095 Wenck Associates, Inc. - 1800 Pioneer Creek Center - PO Box 249 - Maple Plain, MN 55359 -0249 Toll Free 800 -472 -2232 Main 763 - 479 -4200 E -mail accounting @wenck.com Web www.wenck.com STAFF REPORT Agenda Item 8a. Council Meeting: Prepared By: May 11, 2015 Brad Martens Topic: Action Required: Open Book Meeting Recap Direction Summary: On April 9, 2015 an Open Book meeting was held by the City Assessor for the purpose of allowing property owners in Corcoran to appeal their property classification or estimated market value. Holding an Open Book meeting was a change from past practice in which a Local Board of Appeal and Equalization hearing was held at a City Council meeting. That change was due to a Councilmember resignation which resulted in no Councilmember being trained in time for the meeting. According to City Assessor, nine individuals attended the hearing to speak with assessor staff about their classification or value. At staff request, each individual was asked their feedback of the process, and if they had been a part of the previous process which one they preferred. Out of the nine asked, seven stated they preferred the Open Book meeting process; two did not have an opinion. The next opportunity to host this type of meeting will be April 2016. Staff would like to understand if the City Council wishes to continue with an Open Book meeting as we did this year or transition back to a Local Board of Appeal and Equalization hearing as in previous years. If the City Council wishes to transition back to the Local Board of Appeal and Equalization hearing, two Councilmembers are recommended to receive training required later this year. New for 2015, training can be done online. Financial /Budget: The costs for both processes are equal and budgeted for. No additional resources are required. Alignment with Values: This item relates to the following adopted values: EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES We believe that service to the public is our reason for being and strive to deliver quality services in a highly professional, cost - effective, and friendly manner. TREATING THE CITIZEN AS OUR CUSTOMER We believe that citizens are our customers and should be treated with courtesy, respect, and deserve the best services we can provide. Page 2 Options: 1. Direct staff to coordinate an Open Book meeting for 2016 2. Direct staff to coordinate a Local Board of Appeal and Equalization hearing for 2016. Recommendation: Either process is easily accommodated by staff with similar work requirements. Due to the positive comments by participants staff recommends continuing with the Open Book meeting. Council Action: Discuss City Council preference of holding an Open Book meeting or Local Board of Appeal and Equalization hearing in 2016. Attachments: N/A STAFF REPORT Agenda Item 8b. Council Meeting: Prepared By: May 11, 2015 Director Matt Gottschalk Topic: Action Required: ISO Rating Discussion Summary: After presentations by our contracted fire departments at the April 9th meeting, the City Council raised questions about the Insurance Services Office (ISO) ratings in the City of Corcoran. The purpose of this item is to provide basic information on ISO ratings. ISO grades communities through its Public Protection Classification (PPC) program. The PPC rating is determined by the Fire Suppression Rating Schedule (FSRS) and utilizes National Fire Protection Association (NFPA) standards. The PPC rating, determined by ISO, is what is frequently referred to as a community's ISO rating. Research conducted while preparing this report concluded the following about ISO ratings in Corcoran: • ISO ratings are 1 — 10; the lower the number the lower the insurance implications • Each Fire District has a rating for areas within five miles of its fire station. Areas outside of 5 miles automatically receive a rating of 10 o Loretto Fire Department • Within five miles and within 1000 feet of a hydrant: 5 • Within five miles: 813 • Hanover Fire Department ■ Within five miles: 9 • Rogers Fire Department ■ Within five miles: 9 • Approximately 50 percent of Corcoran is within five miles from a fire station held by the service district it is in I have attached a memo from the League of Minnesota Cities explaining ISO reports and what the PPC rating means to communities. I will e-mail a copy of the FSRS so that you can review the community specific criteria that ISO considers when establishing its community rating. The idea is not to exercise the full formula with every action we take but to understand what is being considered when our ratings are being formulated. Understanding these criteria will be important moving forward as we evaluate services. While reviewing the FSRS please focus more on the factors and not the math. The actual calculations and specific grading should be done by ISO PPC evaluators. Staff Report—May 11, 2015 Council Meeting Prepared by Director Gottschalk Page 2 Financial /Budget: There are no costs associated with this item at this time. Alignment with Values: This item relates to the following adopted values: EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES We believe that service to the public is our reason for being and strive to deliver quality services in a highly professional, cost - effective, and friendly manner. FISCAL RESPONSIBILITY We believe that fiscal responsibility and the prudent stewardship of public funds is essential for citizen confidence in government. PROFESSIONALISM We believe that continuous improvement is the mark of professionalism and are committed to applying this principle to the services we offer and the development of our employees. Options: 1. Review ISO staff report, League of Minnesota Cities Memo, and the Fire Suppression Rating Schedule. Recommendation: Review the attached information and the Fire Suppression Rating Schedule. Council Action: Review the presented ISO information Attachments: 1. League of Minnesota Cities Information Memo: The ISO Fire Protection Rating System. 00 INFORMATION MEMO LEA NNOF The ISO Fire Protection Rating System CITIES Learn about the Insurance Services Office (ISO) fire protection rating system, an evaluation factor used in rating a community's fire protection. RELEVANT LINKS: I. ISO Fire Protection Rating System LMC information memo, LMCIT Property Appraisal The premium that cities pay for LMCIT property coverage is largely based Program. on the estimated replacement cost figures of cities' property. In most cases, these figures are established by LMCIT's professional appraisal program. LMCIT also uses the ISO fire suppression rating schedule as a factor in determining premiums. This schedule is used to rate a community's fire protection. Insurance Services office. The ISO has for many years done evaluations and ratings of the fire protection provided in communities. This system is called the ISO Public Protection Classification (PPC) program. The PPC grades a community's fire protection on a scale of 1 -10, based on ISO's Fire Suppression Rating Schedule (FSRS). The better the community's PPC grade, the lower the premium is for property coverage. ISO's data on fire losses indicates that communities with better fire protection as evaluated by the PPC do in fact tend to have lower losses from fire damage than other communities. A. PPC rating factors Fire suppression Rating ISO's PPC system has been in use since the early 1900's, and has been Schedule. continuously modified and refined over that time. The Fire Suppression Rating Schedule (FSRS) looks at a great deal of specific information about the fire department, the water supply, and the types of property in the community, and uses a fairly complex process to evaluate that information. Following are three of the major factors the PPC system looks at. 1. Water supply Water supply is the most important single factor. ISO will look at whether the community has sufficient water supply for fire suppression beyond daily maximum consumption. It also reviews fire hydrant inspections and frequency of flow testing, as well as the number of fire hydrants that are no more than 1,000 feet from the representative locations. In addition, there are some specific minimum requirements for specific classes; to be Class 8 or higher, for example, the city must have the water supply and equipment to deliver at least 250 gallons per minute for at least two hours. This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. 145 University Ave. West www.lmc.org 3/24/2015 Saint Paul, MN 55103 -2044 (651) 281 -1200 or (800) 925 -1122 © 2015 All Rights Reserved RELEVANT LINKS: League of Minnesota Cities Information Memo: 3/24/2015 The ISO Fire Protection Rating System Page 2 2. Fire department ISO reviews the distribution of fire companies throughout the area and checks that the fire department tests its pumps regularly and inventories each engine and ladder company's equipment. ISO also reviews the fire company records to determine factors such as type and extent of training provided to fire company personnel, number of people who participate in training, and firefighter response to emergencies. 3. Emergency communications ISO reviews how well the fire department receives and dispatches fire alarms. It will evaluate the emergency reporting system; the communications center, including the number of telecommunicators; and the computer -aided dispatch facilities. B. ISO reports To obtain a copy of ISO When ISO rates a community's fire protection, it will prepare a reports, contact: ISO Customer Support "Classification Detail Report." This report shows in detail how much credit 545 Washington Boulevard, the city received in the rating process for each item reviewed, compared to 18 -3 Jersey city, NJ 07310 -1686. the maximum credit possible for that item. ISO will also prepare an "Improvement Statement" which identifies what changes a city would need to make in order to move up to a particular grade. To get a copy of these reports, the fire chief needs to request them from ISO in writing on official letterhead. Moving forward, the ISO will periodically send the city a "Community Outreach Questionnaire" asking for information about the city's fire protection system. If the city completes and returns the questionnaire, ISO will check for significant changes in the city's fire protection system that might merit a review of the city's current classification. Changes in the area served, improvements in the city's water system, additional fire stations constructed, new equipment added, and improvements in the city's emergency communications are some of the items most likely to trigger a review. If the city has made improvements in any of these areas, it may be worthwhile to contact ISO to request a survey. II. Further assistance Insurance Services Office. For additional information contact the ISO office for Minnesota. 800.444.4554 League of Minnesota Cities Information Memo: 3/24/2015 The ISO Fire Protection Rating System Page 2 STAFF REPORT Agenda Item 8c. Council Meeting: Prepared By: May 11, 2015 Jeanie Heinecke Topic: Action Required: Cash Balance Report Information Summary: The Cash Balance Report that is included with Claims at each council meeting was first generated in August 2012 at the request of the City Council. This report is meant to be a snapshot of the city's cash position at the time of the report. The report also provides an opportunity to see the City's cash position at the same point in the previous year. The attached Fund Classification /Revenue Sources report prepared yearly by our auditors Abdo, Eick and Meyers includes each fund by number, name, source, classification and purpose. Financial /Budget: N/A Alignment with Values: This item relates to the following adopted value: FISCAL RESPONSIBILITY We believe that fiscal responsibility and the prudent stewardship of public funds is essential for citizen confidence in government. OPEN AND HONEST COMMUNICATION We believe that open and honest communication is essential for an informed and involved citizenry and to foster a positive working environment for employees. Options: 1. Continue to provide the Cash Balance Report with Claims at each City Council meeting. 2. Discontinue including the Cash Balance Report with Claims at each City Council meeting. Recommendation: N/A Council Action: Direct staff on how to proceed. Page 2 Attachments: a. Cash Balance Report —April 15, 2015 b. Fund Classification /Revenue /Sources Report CITY OF CORCORAN CASH BALANCE REPORT April 15, 2015 Fund Description Account Current Balance Last Yr YTD Bal Cash GENERAL FUND G 100 -10100 410,967.66 20,586.31 RESERVES DONATION FUND G 201 -10100 17,077.68 13,213.28 POLICE DONATION FUND G 202 -10100 514.77 1,603.37 FIREARMS SAFETY G 204 -10100 595.70 (875.57) DWI FORFEITURE FUND G 205 -10100 16,208.68 12,144.16 DRUG FORFEITURE FUND G 206 -10100 1,170.94 1,170.23 TRUCK SAFETY G 207 -10100 2,687.42 5,864.52 ASPHALT MAINTENANCE G 305 -10100 71,595.36 71,552.40 D /S- EQUIPMENT CERTS G 309 -10100 (41,553.19) (4,202.57) CO. RD. 19 IMPROVEMENT G 310 -10100 10,046.27 10,038.61 2012B PUBLIC WORKS BOND D/S G 311 -10100 (16,149.53) 18,887.86 TAX INCREMENT FINANCING G 401 -10100 1,795,018.08 1,901,579.62 FACILITY EXPANSION D/S G 407 -10100 (10,312.53) (12,224.86) PUBLIC WORKS FACILITY G 411 -10100 87,650.35 144,678.00 PARK CAPITAL FUND - DEDICATION G 415 -10100 355,191.13 357,876.59 CAPITAL - EQUIPMENT CERTS G 416 -10100 83,272.68 250,550.69 SHANNON LANE G 417 -10100 6,684.98 (5.73) HACKAMORE UPGRADE (LENNAR) G 419 -10100 285,171.10 285,000.00 WETLAND RESTORATION G 420 -10100 100,060.04 100,000.00 HOPE CENTER G 421 -10100 (236,646.95) 0.00 ESCROW HOLDING FUND G 500 -10100 377,166.00 817,310.07 CIVIC ORGANIZATIONS G 501 -10100 6,000.09 6,000.09 WATER G 601 -10100 1,007,606.54 590,050.64 SEWER G 602 -10100 429,992.80 66,003.36 INVESTMENT CONTROL G 999 -10100 1,511.43 41.57 Total Cash 4,761,527.50 4,656,842.64 Farmers Savings Acct PARK CAPITAL FUND - MEMORIAL G 415 -10102 10,644.95 9,166.35 Change in Market Value GENERAL FUND G 100 -10105 (605.07) 0.00 Grand Total Cash 4,771,567.38 4,666,008.99 Due to Other Funds CITY OF CORCORAN FUND CLASSIFICATION/REVENUE SOURCES 3/19/2015 Objective. To analyze fund classifications and purpose to ensure accordance with GASB 54. Fund Fund # Fund Name Major Revenue Source(s) Classification Purpose 100 General Property Tax Assigned general operations 201 Reserves Donation Contribution /Donation Committed Support reserve program 202 Police Donation Contribution /Donation Committed Support public safety 204 Firearms Safety Registration Fee /Contribution/Donation Committed Firearms safety education 205 DWI Forfeiture Vehicle Sales Restricted Support impared driving enforcement 206 Drug Forefeiture Asset Sales Restricted Support drug enforcement policy 207 Truck Safety Donation Committed Support truck safety education 305 Asphalt Maintenance Existing Fund Balance Assigned asphalt maintenance 308 Police Capital General /Bonding Assigned Police Department Records Management System 309 D /S- Equipment Certificates Bonding Restricted Debt Service 310 Co Rd 19 Improvement State Aid Assigned Co Rd 19 improvement project 311 2012 Public Works Bond Bonding Restricted Debt Service 401 Tax Increment Financing Tax Increment Restricted economic development/redevelopment 402 Infrastructure Planning TBD - current deficit Assigned infrastaructure planning costs 407 D /S- Facility Expansion Bonding Restricted Debt Service 410 PW Capital Fund Bonding Assigned public works capital 411 Public Works Facility Bonding Assigned Public works Facility 415 Park Capital Fund Park Dedication Fees Restricted Park improvement 416 Capital Equipment Certificates Bonding Assigned Capital purchases 417 Shannon Lane General/Special Assessment Assigned Road maintenance 419 Hackamore Upgrade GeneraU Special Assesements Assigned Road maintenance 420 Wetland Restoration General/ Special Assesements Assigned Road maintenance 500 (Escrow Holding Land Project Applicants N/A Land projects 501 Civic Organizations No Activity N/A Lions and Jaycees 999 Investment Control Interest Earned N/A Interest earned holding Agenda Item L A N D F 0 R M • frl_nI Sit ID T(F 1 =i 'ich • 105 South Fifth Avenue Tel: 612 - 252 -9070 Suite 513 Fax: 612 - 252 -9077 Minneapolis, MN 55401 www.landform.net TO: Corcoran City Council FROM: Kendra Lindahl, Landform DATE: May 4, 2015 for the May 11, 2015 City Council Meeting RE: Consideration of Ordinance Changes Regarding the Creation of Lots without Development Rights 60 -DAY REVIEW DEADLINE: NA Summary At the April 23, 2015 Council directed staff to bring a summary of the issues regarding the requirement that development rights be available prior to subdivision for City Council discussion. Council member Keefe has asked the City to consider an ordinance amendment that would allow creation of parcels without development rights. 2. Background and Options In 2003, the City adopted a comprehensive new Zoning Ordinance. The ordinance was developed by a joint committee of Planning Commissioners and Council members because it was the first Zoning Ordinance adopted after the Comprehensive Plan. During that discussion, the committee reviewed the prohibition of creation of lots without development rights (formerly called building rights). The staff report stated: Lots of record with no building rights. There are a number of vacant, existing lots of record that have no building rights associated with them. It is likely that the building rights were transferred to other properties in the community, but no deed restrictions or conservation easements were provided to permanently preserve the vacant land. Legally, the City cannot deny landowners reasonable use of their property. In cases where the City records clearly show a building rights transfer, the staff and the City attorney agree that denial of a building permit is legally justified. However, in cases where the City records are incomplete, staff is concerned that failure to allow development could be challenged by the landowner as a failure of the City to allow reasonable use of the property. Perhaps more importantly, it is frustrating for landowners who have lots with no legal use other than agriculture due to the lack of building rights. The record shows very little discussion and consensus that the ordinance should not allow landowners to create lots without development rights. The City had not allowed a transfer of development rights for some time and such a transfer is still not allowed. The creation of a lot or outlot without a development right creates an expectation that a building permit will be issued. Landforms, SensiblyGreen' and Site to Finish are registered service marks of Landform Professional Services, LLC. • There are a number of older subdivisions with parcels with no development rights and we frequently get calls from frustrated homeowners or potential buyers who do not understand why they cannot build on a parcel. In the urban area, development rights only apply until municipal sewer and water are available. When municipal sewer and water become available, the land will be subject to a minimum lot size requirement rather than development rights. This means that the City may have outlots for stormwater management ponds that have easements that restrict the use of the outlot for ponding only and they are unbuildable parcels. The development rights really only apply in the UR (Urban Reserve) and RR (Rural Residential) zoning districts. In both of these districts, the ordinance says: Subd. 7. Density Requirements. This Section identifies the maximum number of residential units or non - residential units that may be developed. The development rights program is intended to preserve a rural residential environment with active agri- businesses. Development rights shall be calculated based on the total lot area and rounded to the nearest whole number. Development rights shall be as recorded on the official City of Corcoran "Development Rights Map" on file at City Hall. A. Landowners shall be permitted one development right for each 10 acres of land accessing onto a paved roadway. B. Landowners shall be permitted one development right for each 30 acres of land accessing onto a gravel road. C. The existing farmstead or residence on properties accessing onto gravel roads and eligible for Agricultural Preserve is exempt from the density calculations in rural areas, if the farmstead or residence existed prior to July 1, 1981 and the subject parcel is a minimum of 40 acres in size. The minimum lot area may be reduced from 40 acres to 35 acres if the parcel is a quarter - quarter parcel reduced from the standard 40 -acre quarter - quarter parcel due to public road right -of -way or a perturbation in the rectangular survey system. D. Additional development rights may be granted to landowners that develop the property as part of an Open Space Preservation plat, as permitted by the Subdivision Regulations. E. Except as otherwise approved as part of an Open Space Preservation Plat, no lots or outlots shall be allowed to be created without development rights. As noted, in the above section, a landowner can obtain additional development rights by paving the road. A person with a 40 acre parcel on a gravel road would have one development right today, but if they paved the road, the number of development rights would increase to 4 on that same 40 acre parcel. Under the current regulations, that 40 acre parcel with one development right is not subdividable until the road is paved. Staff also notes that the City Code requires all subdivisions to be by plat. Development Rights May 11, 2015 0 w • • Staff is aware that prior to the 2004 ordinance adoption, there were some parcels created without building rights. Staff is familiar with 4 of those parcels because we frequently get calls from frustrated landowners or potential buyers, but there may be more. We are also aware that in 2008, the City approved a subdivision for Bechtold Family Acres that included one lot and one outlot with no development rights. This was approved in violation of the Zoning Ordinance standards that were in place at that time, but this was not mentioned in the staff report to the City Council by former City Planner Gartner and it does not appear that the issue was raised at the Planning Commission or City Council. The Council has two options: a. Direct staff to make no change to the development rights program. b. Direct staff to prepare a draft ordinance that allows the creation of lots without development rights. We would work with the City Attorney to try to identify the land use implications and try to develop language that is legally defensible for the City. 3. Recommendation Council should provide staff direction. Development Rights May 11, 2015 STAFF REPORT Agenda Item 9b. Council Meeting: May 11, 2015 Prepared By: Mike Pritchard Topic: Three Rivers Park District Sign for Lake Independence Regional Trail Trailhead Action Required: Staff Direction Background: On July 24, 2014, the City Council approved a Rezoning, Site Plan, and Variance for a trailhead facility, "Lake Independence Regional Trail Trailhead," for Three Rivers Park District (TRPD) at 23475 County Road 10. A minor site plan amendment was also approved on April 9, 2015. Construction of the facility was postponed last year, but is now underway. Summary: A 2' x 2' (4 square foot) "diamond" shaped entrance sign was approved as proposed by Three Rivers Park District as part of the Site Plan approvals,. (See attached narrative and site plan) Three Rivers Park District is now requesting a change to their originally approved sign. They are proposing a 3' x 6' (18 square foot) freestanding sign, which is consistent with many of their signs across the park district. (See attached graphic and example.) City Sign Ordinance allows a maximum 10 square foot freestanding sign area in the commercial districts. Any sign larger than 10 square feet would require a Variance as per the requirements of Section 1070.040. However, staff believes there is language in the ordinance that would exempt TRPD's sign from the provisions of this ordinance. Three Rivers Park District is a Government body and therefor, any sign installed by TRPD is by definition, a Government Sign. 84.02 DEFINITIONS - Government Sign - A sign erected by a government body. 84.04: EXEMPT SIGNS. The following signs shall be exempt from the provisions of this ordinance, except they must meet the General Provisions (Section 84.07): 15. Government signs in all districts. If Council agrees with Staff interpretation of the ordinance, then it should by motion confirm that the intent of the language found in Chapter 84 Sign Ordinance is to exempt TRPD's sign per Section 84.04. If Council does not feel this is the intent of the ordinance, then it should by motion, state that Three Rivers Park District is not exempt and requires a Variance for their sign. Page 2 Financial /Budget: N/A Alignment with Values: This item relates to the following adopted values: EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES We believe that service to the public is our reason for being and strive to deliver quality services in a highly professional, cost - effective, and friendly manner. Options: 1. Confirm that the intent of the language found in Chapter 84 is to exempt Three Rivers Park District's sign per the standards found in Section 84.04. 2. Confirm that Three Rivers Park District does not meet these standards for exemption and require a variance for the proposed sign. Recommendation: Staff recommends the sign be exempted from the provisions of the sign ordinance per Section 84.04. Council Action: Consider a motion confirming that Three Rivers Park District's sign is exempt from sign standards per Section 84.04 as recommended by staff. Attachments: 1. Three Rivers Park District Narrative and Site Plan 2. TRPD Sign graphic and example 7'hreeRivers PARK DISTRICT Dear Mr. Martens: Jennifer DeJournett District 2 The Park District is submitting revised plans and a narrative for Site Plan, Rezoning, and Variance approval for the Lake Independence Regional Trail Trailhead Parking Lot & CXT Bathroom in the City of Corcoran at the southeast Daniel Freeman, corner of County Road 10 and County Road 19. The project includes a gravel Vice Chair parking lot with bituminous accessible parking, a paved connection between the District 3 Lake Independence Regional Trail and parking lot, and a CXT bathroom. Items needed to complete the application John Gunyou, Chair Item 1 District 4 See the Existing Drainage Condition, Proposed Drainage Condition, and Aerial Exhibits. John Gibbs Item 2 District 5 The sign along the parking lot entrance drive is a 24 "x24" steel sign on metal post stating" Three Rivers Park District Trailhead Parking Lot. The sign will be set back Larry Blackstad 10 feet from the property line. Lighting will not be provided for any site signage. Appointed At Large Item 3 The CXT Bathroom's walls and roof are precast concrete. This complies with the Steve Antolak standards in Section 1060.050, Subdivision 1(C)1.d. Appointed At Large Cris Gears Superintendent Administrative Center, 3000 Xenium Lane North, Plymouth, MN 55441 -1299 Information 763.559.9000 • TTY 763.559.6719 • Fax 763.559.3287 • www.ThreeRiversParks.org June 13, 2014 Three Rivers Park District Board of City of Corcoran Commissioners Attn: Brad Martens 8200 County Road 116 Corcoran, MN 55340 Penny Steele District 1 RE: Additional Information Request for Lake Independence Regional Trail Trailhead Parking Lot & CXT Bathroom Site Plan, Rezoning, and Variance Application Dear Mr. Martens: Jennifer DeJournett District 2 The Park District is submitting revised plans and a narrative for Site Plan, Rezoning, and Variance approval for the Lake Independence Regional Trail Trailhead Parking Lot & CXT Bathroom in the City of Corcoran at the southeast Daniel Freeman, corner of County Road 10 and County Road 19. The project includes a gravel Vice Chair parking lot with bituminous accessible parking, a paved connection between the District 3 Lake Independence Regional Trail and parking lot, and a CXT bathroom. Items needed to complete the application John Gunyou, Chair Item 1 District 4 See the Existing Drainage Condition, Proposed Drainage Condition, and Aerial Exhibits. John Gibbs Item 2 District 5 The sign along the parking lot entrance drive is a 24 "x24" steel sign on metal post stating" Three Rivers Park District Trailhead Parking Lot. The sign will be set back Larry Blackstad 10 feet from the property line. Lighting will not be provided for any site signage. Appointed At Large Item 3 The CXT Bathroom's walls and roof are precast concrete. This complies with the Steve Antolak standards in Section 1060.050, Subdivision 1(C)1.d. Appointed At Large Cris Gears Superintendent Administrative Center, 3000 Xenium Lane North, Plymouth, MN 55441 -1299 Information 763.559.9000 • TTY 763.559.6719 • Fax 763.559.3287 • www.ThreeRiversParks.org Items needed to be addressed. but did not make the Mav 20. 2014 aoDlication incomplete Item 1 The owner information is: Jim Grube Hennepin County 1600 Prairie Drive Medina, MN 55340 Item 2 The bituminous ADA stall will have permanent pavement striping. The gravel parking stalls will defined with temporary paint. The painted stalls will indicate parking layout during the first couple of months and repeat users will understand how to park. The ADA stall with permanent striping will show new users the parking orientation. The parking stalls are 9' by 18.5'. Item 3 Screening will be provided on the north and south side of the parking lot. Planting information is provided on the revised plans. Item 4 We have eliminated the reforestation planting from the project. Sincerely, Josh Bowe PE, LEED® AP BD +C Civil Engineer Three Rivers Park District Enclosures: City of Corcoran Information Request, dated June 9, 2014 Three Rivers Park District Application Narrative, dated May 20, 2014 rn O O N N 0 �1 0) vi x LU a� ru 0 O J c Cs a� r) m / ro L H O tY U rn tY O It J T fu fo C 0 0) W t� U LU ry a / r, /O(UG) F /O(UG) - -F j Q " O 1012 / I JG LL /BUG` — F /0(U4 f /O(UG). F /O(UG)— F /O(UG )-- F /O(UG)-- --F /0( UG) F /O(UG) /0(UG}'— 'F /O(UG) — F /0(UG} —f JG� ROW ROW nnn!!!UG RO9 /O(UG) /O(UG) F /O(UG) /O(UG�f /O(UG�F /0 /O(UG)-F /O(UO /0(UG}- -� /�-• �F I o� COUNTY M 10 BACK OF CURB HAZEL 8 TOTAL 3 GALLON I - F /O(UG /0( UGC— F /O(UG)---- F /O(UG}- /O(UG) F /O(UG) — F /O(UGl - -F /0 G}— F /0(UG�F /0(UG)--- F /0(UG Gl-- NANNYBERRY /r 5 TOTAL 3 GALLON roy, F /0(UG�— F /0(UG }F /0(UG�F /0(UG }- ' R E(0rtr- ROWGHY=- -E(0Nr fZOW(�r-- {(o"> —ROV � I PROPOSED 10' WIDE SNOWMOBILE TRAIL I 2 1/2" WHITE OAK I � � 1 i- -•� - -- 7C— — O — — / +00 1 +50 0 +50 INSTALL 24 "x24" STEEL "TRPD TRAILHEAD PARKING LOT" SIGN. SIGN PANEL PROVIDED BY OWNER /O(UG) - -f, CAUTION BURIED FIBER -OPTIC • FURNISH AND INSTALL CONCRETE VALLEY GUTTER PER STR -2, C801 REPLACE FRAME \AND GRATE WITH NEENAH R-336 0-A /O(UG )--F fiL�3il�a /O(UG) F /O(UG) F 1011. • Coll 1 • • m pw N 1 1 1010.95 i 7 r - - - - - - - - - - - - - - \ - - - - - - - - - - - - - - - - - - - - i 1 1010.14 1010.80 I 1 1 — F /O(UG)- f /O(UG)- F /O(UG) F /O(UG / 0 L 00 O, PVI ELEV: 1011.94 CL rco G STOP - .L `n (n O AD: -2.34% - -- - - - -- _- z aj O o � 2i W ! - - - -- R1 -1 - - 30X30 - - - 0(UG (n Qj j W � o — F /0(UG�— F /O(UG F /O(UG) --- F /O(UG OHS —E OH (OH R /0(ljG ( 0 a O O + o c'j�W� 6 O o + LL — F /O(UG)- f /O(UG)- F /O(UG) F /O(UG / 0(UG L 00 O, PVI ELEV: 1011.94 O rco G K: 17.23 CT ° O AD: -2.34% ° I. N ° � 2i W ! 101 o•56 0(UG z a z — F /0(UG�— F /O(UG F /O(UG) --- F /O(UG OHS —E OH (OH R /0(ljG ( 0 a O O + o c'j�W� 6 O o + LL I + vi w N w �Dza°'J >>>> 1010.96 00 2 z a- _ }pWF -0 Li 1 �oocn of cn I m no m ~ W � 'u-) z zz N W n 1 1 0Z 0 a w z .- ! 1 }WUJ�WO 00 � H } W 1 w 0- v J z w =Q��zl¢- _�o¢WU) r 1009.63 --/ - - - - - - - -_ - -- — CNSTLIMITS 1009.52- - - � - - — — — — — — — _— — PROPOSED MINOR CONTOUR, TYP. ' 1009.47— PROPOSED MAJOR CONTOUR/, TYP. r 1 / 1009 59� 009.72 0 i,b o i I 10 009.97 1 � 1 9' 1 � 1 \ I oD 1009.55 d • d �U ° ° A , d A a FFE +1009.62 d ° ° d _ 1009. rn ` t n 9 7< // PVI STA: 0 +94.85 PVI STA: 1+22.05 PVI ELEV: 1010.50 PVI ELEV: 1010.30 K: 19.18 K: 30.74 AD: 1.49% AD: -0.84% —VC: 28.529 — VC: 25.867— a N PVI STA: 0+30.11 0, 00 O, PVI ELEV: 1011.94 O rco K: 17.23 CT ° O AD: -2.34% ° I. N ° VC: 40.309 O 01 M HIGH PT. STA: 0 +1 1.91 N o + o HIGH PT ELEV: 1011.92 6 O o + + vi w N w vi >>>> di 00 00 Li 0 00 >> m no m w W n 1 1 0Z 009.72 0 i,b o i I 10 009.97 1 � 1 9' 1 � 1 \ I oD 1009.55 d • d �U ° ° A , d A a FFE +1009.62 d ° ° d _ 1009. rn ` t n 9 7< // PVI STA: 0 +94.85 PVI STA: 1+22.05 PVI ELEV: 1010.50 PVI ELEV: 1010.30 K: 19.18 K: 30.74 AD: 1.49% AD: -0.84% —VC: 28.529 — VC: 25.867— a N r 0, 00 O, Lq O rco 0.0 CT ° O D` ° I. N ° CO O M GRADE BREAK STA = 1 +61.15 + o + o + o O vi w N w vi w 0 00 00 00 0 0 00 >> >> >> I uug.57 • • - - L - 177 t 71 1 _ 1 - \ II Q II 1 \ �- m n CONCRETE PAVEMENT. SEE DETAIL TR -5, INSET 'A' 0 +00 1 +00 FOP VIOLATION R7 -8M 12 X-rS- HAZEL 5 TOTAL 3 GALLON CONTRACTOR SHALL BE RESPONSIBLE FOR RESTORATION OF ALL DISTURBED AREAS. AT A MINIMUM, THE CONTRACTOR SHALL: 1.1. RESPREAD SALVAGED TOPSOIL. TOPSOIL SHALL BE DEBRIS FREE AND PULVERIZED TO A DEPTH OF 6 ". 1.2. RESTORE DISTURBED VEGETATED AREA WITH: • "TRPD SEED MIX" @175 LBS /AC (SEE SPECS) • MnDOT TYPE 2 (22 -0 -10) FERTILIZER @ 350 LBS /AC • CATEGORY 3 EROSION CONTROL BLANKET, ALL NATURAL STITCHING ONLY. RESTORATION SHALL BE PAID BY UNIT PRICES, WHICH SHALL INCLUDE ALL LABOR, EQUIPMENT, AND MATERIALS USED. L, 1 I I 1 I � - - - - - - - - - - - - - -p • NANNYBERRY 7 TOTA L 3 GALLON ,ply UTILITY NOTE: THE SUBSURFACE UTILITY INFORMATION IN THE PLAN IS UTILITY LEVEL QUALITY 11D ", UNLESS OTHERWISE NOTED. THIS QUALITY LEVEL WAS DETERMINED ACCORDING TO THE GUIDELINES OF CI /ASCE 38 -02, ENTITLED "STANDARD GUIDELINES FOR THE COLLECTION AND DEPICTION OF EXISTING SUBSURFACE UTILITY DATA." THE LOCATION AND TYPE OF PRIVATE UTILITIES SHOWN ON THE DRAWINGS ARE FOR GENERAL INFORMATION ONLY! THREE RIVERS PARK DISTRICT DOES NOT WARRANT THIS INFORMATION TO BE ACCURATE OR COMPLETE. THE CONTRACTOR IN r RN 1 N G COOPERATION WITH THE APPROPRIATE PRIVATE UTILITY COMPANY IS OR SHALL CALL GOPHER RESPONSIBLE TO VERIFY THE LOCATION CALL BEFORE DIGGING. AND DEPTH OF ALL UNDERGROUND 1 -800 -252 -1 166 UTILITIES. REQUIRED BY LAW N 0 5 10 20 0 z U W W w z 0 LU x z< O a 00 O N O Ln O � CT L j Z 4r wLn "D [� n LU M C � LL F 0 A Z Ln LU Ln g oQ ~ Oz O W Q LU w z LU Q Z z= LU ~ Z) O 2: O J M L1 � z L O •� L L O U O -0 O � oC V .� 0 -0 U 06 -0 (a H � Q� a-J fu 0 J U Proj. No. TLI 1401 Issue Date 5/14/2014 Designed By JB Drawn By NS Checked By JB SHEET TITLE Construction Plan C601 Sheet 07 of 09 O 0 m GRADE BREAK STA = 0 +00.00 01 01 -0-14% ELEV = 101 1.905 LO 7 N 10 V7 CT cl� CT Op 7 D` p. I. N 011 N . Oq r GRADE BREAK STA = 1 +61.15 1 008 O O ELEV = 1009.680 0 +00 1 +00 FOP VIOLATION R7 -8M 12 X-rS- HAZEL 5 TOTAL 3 GALLON CONTRACTOR SHALL BE RESPONSIBLE FOR RESTORATION OF ALL DISTURBED AREAS. AT A MINIMUM, THE CONTRACTOR SHALL: 1.1. RESPREAD SALVAGED TOPSOIL. TOPSOIL SHALL BE DEBRIS FREE AND PULVERIZED TO A DEPTH OF 6 ". 1.2. RESTORE DISTURBED VEGETATED AREA WITH: • "TRPD SEED MIX" @175 LBS /AC (SEE SPECS) • MnDOT TYPE 2 (22 -0 -10) FERTILIZER @ 350 LBS /AC • CATEGORY 3 EROSION CONTROL BLANKET, ALL NATURAL STITCHING ONLY. RESTORATION SHALL BE PAID BY UNIT PRICES, WHICH SHALL INCLUDE ALL LABOR, EQUIPMENT, AND MATERIALS USED. L, 1 I I 1 I � - - - - - - - - - - - - - -p • NANNYBERRY 7 TOTA L 3 GALLON ,ply UTILITY NOTE: THE SUBSURFACE UTILITY INFORMATION IN THE PLAN IS UTILITY LEVEL QUALITY 11D ", UNLESS OTHERWISE NOTED. THIS QUALITY LEVEL WAS DETERMINED ACCORDING TO THE GUIDELINES OF CI /ASCE 38 -02, ENTITLED "STANDARD GUIDELINES FOR THE COLLECTION AND DEPICTION OF EXISTING SUBSURFACE UTILITY DATA." THE LOCATION AND TYPE OF PRIVATE UTILITIES SHOWN ON THE DRAWINGS ARE FOR GENERAL INFORMATION ONLY! THREE RIVERS PARK DISTRICT DOES NOT WARRANT THIS INFORMATION TO BE ACCURATE OR COMPLETE. THE CONTRACTOR IN r RN 1 N G COOPERATION WITH THE APPROPRIATE PRIVATE UTILITY COMPANY IS OR SHALL CALL GOPHER RESPONSIBLE TO VERIFY THE LOCATION CALL BEFORE DIGGING. AND DEPTH OF ALL UNDERGROUND 1 -800 -252 -1 166 UTILITIES. REQUIRED BY LAW N 0 5 10 20 0 z U W W w z 0 LU x z< O a 00 O N O Ln O � CT L j Z 4r wLn "D [� n LU M C � LL F 0 A Z Ln LU Ln g oQ ~ Oz O W Q LU w z LU Q Z z= LU ~ Z) O 2: O J M L1 � z L O •� L L O U O -0 O � oC V .� 0 -0 U 06 -0 (a H � Q� a-J fu 0 J U Proj. No. TLI 1401 Issue Date 5/14/2014 Designed By JB Drawn By NS Checked By JB SHEET TITLE Construction Plan C601 Sheet 07 of 09 O 0 m 10 f11 01 01 CD `t CN LO 7 N 10 V7 CT cl� CT Op 7 D` p. I. N 011 N . Oq r O O O D O O 00 0 00 0 0 00 00 00 0 0 00 0 +00 1 +00 FOP VIOLATION R7 -8M 12 X-rS- HAZEL 5 TOTAL 3 GALLON CONTRACTOR SHALL BE RESPONSIBLE FOR RESTORATION OF ALL DISTURBED AREAS. AT A MINIMUM, THE CONTRACTOR SHALL: 1.1. RESPREAD SALVAGED TOPSOIL. TOPSOIL SHALL BE DEBRIS FREE AND PULVERIZED TO A DEPTH OF 6 ". 1.2. RESTORE DISTURBED VEGETATED AREA WITH: • "TRPD SEED MIX" @175 LBS /AC (SEE SPECS) • MnDOT TYPE 2 (22 -0 -10) FERTILIZER @ 350 LBS /AC • CATEGORY 3 EROSION CONTROL BLANKET, ALL NATURAL STITCHING ONLY. RESTORATION SHALL BE PAID BY UNIT PRICES, WHICH SHALL INCLUDE ALL LABOR, EQUIPMENT, AND MATERIALS USED. L, 1 I I 1 I � - - - - - - - - - - - - - -p • NANNYBERRY 7 TOTA L 3 GALLON ,ply UTILITY NOTE: THE SUBSURFACE UTILITY INFORMATION IN THE PLAN IS UTILITY LEVEL QUALITY 11D ", UNLESS OTHERWISE NOTED. THIS QUALITY LEVEL WAS DETERMINED ACCORDING TO THE GUIDELINES OF CI /ASCE 38 -02, ENTITLED "STANDARD GUIDELINES FOR THE COLLECTION AND DEPICTION OF EXISTING SUBSURFACE UTILITY DATA." THE LOCATION AND TYPE OF PRIVATE UTILITIES SHOWN ON THE DRAWINGS ARE FOR GENERAL INFORMATION ONLY! THREE RIVERS PARK DISTRICT DOES NOT WARRANT THIS INFORMATION TO BE ACCURATE OR COMPLETE. THE CONTRACTOR IN r RN 1 N G COOPERATION WITH THE APPROPRIATE PRIVATE UTILITY COMPANY IS OR SHALL CALL GOPHER RESPONSIBLE TO VERIFY THE LOCATION CALL BEFORE DIGGING. AND DEPTH OF ALL UNDERGROUND 1 -800 -252 -1 166 UTILITIES. REQUIRED BY LAW N 0 5 10 20 0 z U W W w z 0 LU x z< O a 00 O N O Ln O � CT L j Z 4r wLn "D [� n LU M C � LL F 0 A Z Ln LU Ln g oQ ~ Oz O W Q LU w z LU Q Z z= LU ~ Z) O 2: O J M L1 � z L O •� L L O U O -0 O � oC V .� 0 -0 U 06 -0 (a H � Q� a-J fu 0 J U Proj. No. TLI 1401 Issue Date 5/14/2014 Designed By JB Drawn By NS Checked By JB SHEET TITLE Construction Plan C601 Sheet 07 of 09 ►7 r.1 O Nt O N N O O u O L4 X W N O ro C ro L O Nt J i C O N 0 m i co N ro L O U O ry U O J i ca C O 0) N M i U) f- U W rn 0 a r, 6' MIN. a � LU LU N z i _ 4" CONCRETE PAVEMENT (NO REBAR) 6" CRUSHED CLASS 5 6" MIN. u° m p D LU W O N z _ 6" CONCRETE PAVEMENT (NO REBAR) 8" CRUSHED CLASS 5 EXISTING TURF USES: 1. CONCRETE WALK, PICNIC SLAB, PARK BENCH SLAB OR ACCESS TO COMMON OPEN SPACE. 2. LOCATION ANTICIPATED TO RECEIVE INFREQUENT USE BY LIGHT MACHINERY AND /OR LIGHT VEHICLES. EXISTING TURF USES: 1. PRIVATE DRIVEWAY CROSSINGS, PEDESTRIAN CURB RAMPS AND DRINKING FOUNTAIN SLAB. 2. MODERATE USE BY LIGHT MACHINERY AND /OR LIGHT VEHCILES. FACE POST NOTCHES AWAY FROM FABRIC. EXISTING TURF CTION DIRE OF RUNOFF \y\ �&g �y�� _ - - -- 12" MIN. NO V ° USES: ° U COMMERCIAL DRIVEWAY CROSSINGS OR SUPPORT POST WITH IN -SITU SOIL, u COMPACT ALL DISTURBED OR MAINTENANCE YARDS. V) LOOSE SOIL TO PROVIDE STABILITY. - 2. ANTICIPATED TO RECEIVE FREQUENT USE BY LIGHT MACHINERY AND /OR VEHICLES. 1 3. ANTICIPATED TO RECEIVE INFREQUENT USE BY HEAVY MACHINERY AND /OR HEAVY VEHICLES. L 8" CONCRETE PAVEMENT L(REBAR REQUIRED) 12" CRUSHED CLASS 5 REBAR OR WELDED WIRE MESH NOTES: (SEE NOTE 5). 1. AGGREGATE BASE SHALL CONFORM TO MnDOT SPEC 2211. 2. CONCRETE SHALL CONFORM TO MnDOT SPECS 2521 AND 2531. 3. CONCRETE SHALL BE FIBER - REINFORCED WHERE SPECIFIED OR INDICATED ON THE PLANS. ADD DISPERSIBLE, ALKALI - RESISTANT FIBERS AT A RATE OF 1.0 LB/ CY TO CONCRETE MIX OR PER FIBER SUPPLIERS RECOMMENDATIONS. AT LOCATIONS WHERE PEDESTRIAN TRAFFIC IS EXPECTED, OPEN SLAB SURFACES SHALL BE STRUCK OFF W/ VIBRATING SCREED OR EQUAL, SUCH THAT FIBERS ARE NOT EXPOSED TO THE SURFACE. 4. ANY LOCATION ANTICIPATED TO RECEIVE MODERATE USE BY HEAVY MACHINERY AND /OR HEAVY VEHICLES IS TO BE DESIGNED SEPARATELY AND SHOWN ON THE PLANS. 5. REBAR OR WELDED WIRE MESH IS TO BE PLACED 4" ABOVE BOTTOM OF CONCRETE AND 3" FROM EDGE OF CONCRETE, (SEE PLANS) FOR REBAR OR WELDED WIRE MESH INFORMATION. 6. SEE PLANS FOR ACTUAL LOCATIONS AND DIMENSIONS OF CONCRETE PAVEMENTS. TR -5 CONCRETE PAVEMENT (TRAIL PURPOSES) a ml NTS IN -PLACE ELEVATION VIEW ISOMETRIC VIEW NOTE: 1. WIMCO ROAD DRAIN RD 23 HIGH FLOW INLET PROTECTION TOP SLAB MODEL OR APPROVED EQUAL. INLET PROTECTION - BEFORE CURB NTS )PENINGS FOR OVERFLOW LTER ASSEMBLY RD 23 IGH FLOW FILTER FABRIC 1ANHOLE COVER ASSEMBLY AANHOLE STRUCTURE POLYESTER SLEEVE FILTER ASSEMBLY RD 23 MANHOLE COVER ASSEMBLY STEEL FENCE POST, 5' MIN. POST LENGTH, 6' MAX. SPACING BETWEEN POSTS. PLASTIC ZIP TIES 30" HIGH MIN. MS, HI WOVEN GEOTEXTILE FABRIC, AS PER MnDOT SPEC TABLE 3886 -1. FABRIC ANCHORAGE TRENCH, BACKFILL TRENCH WITH TAMPED NATURAL SOIL. z w .:E _z0 �m CN N w V) N O 0- NOTES: 1. CONFORM TO MnDOT SPECS 2573 AND 3886. 2. ATTACH FABRIC TO POSTS WITH PLASTIC ZIP TIES (50 POUND TENSILE STRENGTH, MIN). PROVIDE A MIN. (3) TIES WITHIN THE TOP 8" OF FABRIC. 3. OVERLAP GEOTEXTILE FABRIC 6 ", MIN. AND FASTEN AT 2' INTERVALS, MAX. ERO -1 MACHINE SLICED SILT FENCE NTS NOTES: 1. CONFORM TO MnDOT SPEC 2564. 2. POST MATERIAL: 2.1. FIBERGLASS FILAMENT REINFORCED RECYCLED PLASTIC LUMBER POSTS. 2.2. POST LENGTH SHALL BE 13, TYP. OR LONGER, AS REQUIRED TO MAINTAIN STANDARD SIGN MOUNTING HEIGHT. 2.3. NO SPLICES ALLOWED. 2.4. APPROVED PRODUCT: FIBERFORCE ® PLASTIC LUMBER, AS MANUFACTURED BY BEDFORD TECHNOLOGY ® LLC OR APPROVED EQUAL AND MEETING THE FOLLOWING SPECIFICATIONS: 2.4.1. DIMENSIONAL 4X4 (ACTUAL DIMENSIONS 3.5 "X3.5 "). 2.4.2. COLOR BROWN. 3. SIGN PANEL MATERIAL: 3.1. CONFORM TO MnDOT SPEC 2564 AND 3352. 3.2. REFLECTIVE SHEETING SHALL MEET MnDOT SPEC 3352.2A2 SIGN SHEETING TYPE III. 4. SIGN MOUNTING HARDWARE: 4.1. CARRAIGE BOLTS SHALL BE %6'SIZE, 5" IN LENGTH A304 STAINLESS STEEL IN ACCORDANCE WITH MnDOT SPEC 3391.2E. 4.2. LAG SCREWS SHALL BE %6' IN SIZE, 2" IN LENGTH A304 STAINLESS STEEL IN ACCORDANCE WITH MnDOT SPEC 3391.2E. 4.3. PROVIDE NYLON WASHER BETWEEN BOLT HEAD AND SIGN PANEL. 4.4. FASTEN BOLTS WITH NYLON INSERT LOCK NUTS OF THE SAME GRADE AND MATERIAL AS THE BOLTS. 5. AUGER POST HOLES AND SET POSTS SUCH THAT SIGN FACE IS PERPENDICULAR TO ROADWAY OR PARALLEL TO PARKING LOT. 6. SUBMIT SHOP DRAWINGS AND SIGN LAYOUTS FOR ALL TRAFFIC SIGNS AND DEVICES FOR APPROVAL BY THE ENGINEER PRIOR TO FABRICATION. 7. FIELD VERIFY ALL LOCATIONS WITH THE ENGINEER PRIOR TO PLACEMENT. CONCEAL TOP OF PC 0.5" TO 1.0 ", T' PRIMARY SIGN PANEL, T INSTALL SECONDARY SI( PANEL I" TO 3" BEN E/ THE PRIMARY SI( PANEL, T INSTALL SIGN PC VERTICALLY AND PLUI WITH 3- 6 "MIN EMBEDME DEPTH, T J R-ig TYPICAL SIGN PLACEMENT -PARK ROAD /PARKING LOT NTS 2%, TYP MATCH EXISTING PAVEMENT AND SUBGRADE THICKNESS OR AS DIRECTED BY ENGINEER. �3/4' 18 " 18 "PER FT. #4 REBAR, TYP. m ch 6" MIN. CLASS 5 AGGREGATE 100% CRUSHED LIMESTONE QUARRY OR RECYCLED EQUAL (MnDOT 3138) PROTECT EXISTING BASE MATERIAL, TYP. STR -2 CONCRETE VALLEY GUTTER NTS I V L/\VLLL/ V LI IIL.LL W HEELPATHS. NOTES: 1. PLACE FILTER FABRIC UNDER ROCK TO RESTRICT MUD MIGRATION THROUGH ROCK. 2. ADD AND REPLACE ROCK AS NEEDED TO MAINTAIN EFFECTIVENESS OF ENTRANCE. 3. REMOVE MATERIALS AND RESTORE SITE UPON COMPLETION. ERO -8 ROCK CONSTRUCTION ENTRANCE NTS 1/2" DIA. RUBBER BLACK HOSE 11 GA. GALVANIZED WIRE. COIL EACH END TIGHTLY AROUND I BRANCHES TO REMAIN NATURAL FORM OF TREE APPROVED TREE DRESSING ON ALL ROOT AND CH CUTS OVER 1/2" DIAMETER. kP TRUNKS GREATER THAN 2-1/4" CALIPER i BURLAP. =TAL "T" POSTS TIN LENGTH NTAIN TREE BASE AT OR SLIGHTLY HIGHER THAN PING GRADE, TO ALLOW FOR SETTLEMENT. CH ATE SAUCER AROUND TREE. TING GROUND AND REMOVE TOP 1/3 OF BURLAP FROM )T BALL. ROOT BALL APACTED TOPSOIL ,_RIFY BOTTOM OF PIT TO A DEPTH OF 6 ". NOTES: 1. SEE SPECIFICATIONS FOR TOPSOIL SPEC. 2. DO NOT DAMAGE MAIN ROOTS OR DESTROY ROOT BALL WHEN INSTALLING TREE STAKE. 3. WATER THOROUGHLY AFTER INSTALLATION. 4. REMOVE TREE RINGS AND STAKES TWO YEARS AFTER INSTALLATION. 5. PROVIDE DRAINAGE FOR PLANTING PIT IN IMPERMEABLE SOIL. GEN -1 TREE INSTALLATION DETAIL NTS THIN BRANCHES AND FOLIAGE (NOT ALL END TIPS) BY 1/3 RETAINING NORMAL PLANT SHAPE, THINNING, NOT REQUIRED ON EVERGREENS. EXISTING 3" GRADE MULCH MOUND PLANTING SOIL 4" TO FORM SAUCER 12". 12" REMOVE BURLAP FROM TOP 1/3 OF BALL MIXTURE REMOVE PLANTING CONTAINERIZED SOIL PLANTS FROM THEIR CONTAINERS GEN-5 SHRUB PLANTING DETAIL SCALE: NO SCALE C O CL L U U z � O � U) > +J W (0 0 L r� J :2 2 Q W Z= zQW- ELZQU)0 O Ln z) z IOzWQ =�zo=� >- m cn of�U) -°OUoz 0 zz U CL C Z) W COW W0 W0- Z w w Q =aof0Z< Qwcn z 0 z O 2 00 O N O Ln O Ln Z H rn Ln Ln � � iN LU M I\ LL C w Q Ln Q Ln z0 a a ww o. z z W J z z= ~ W = X O O J r� a z W � O '- U L_ L U O -O ro O W V 4-J O _0 U ^� 66 ^W 0) W _0 (0 H � W 4-J fu O J U Proj. No. TLI 1401 Issue Date 5/14/2014 Designed By JB Drawn By NS Checked By JB SHEET TITLE DETAILS C801 Sheet 09 of 09 72„ 51/2 /1 T il Access Park 36" r1 3 If m am 901 rel 1 Fa =sin TRPD 2015 070 Qty 2 Diabond a r''L F, 7 ! - I' -I ing Carver Park Reserve i FIT'"W" Engineer's Memo MAY 5 2095 s WENCK Responsive partner. Exceptional outcomes, To: Brad Martens, City Administrator From: Kent Torve, PE, City Engineer Date: May 4th, 2015 Subject: Pay Request #5 -- 2014 SE District Sewer & Water Improvements Co i! Action R u d • Approve Pay Request #5 in the amount of $33,284.69. Project Status • Contract Amount - $1,819,223.14 • Change Orders to Date - $0 • Projected Total - $1,703,000.0 • Funding through Utility Bond fund Proiect Update This amount brings the total approved to date to 91% of the project value before withholding the 5% contingency amount of $81,895.48. Work completed to date includes site restoration, the installation of sewer and water utilities along with the construction of a lift station and access road to support the Lennar development along CSAH 101. Next Steps Northdale Construction to complete the inspection punch fist notice. Remaining work includes miscellaneous punch list items. Wenck Associates, Inc. I 1800 Pioneer Creek Center I P.O. Box 249 1 Maple Plain, MN 55359 -0249 Toll Free 800 -472 -2232 Main 763479 -4200 Finail wenckmp @wenck.com Web wenck.com PAYMENT REQUEST FORM OWNER: City of Corcoran PROJECT: 2014 SE District Sewer & Water Improvements CONTRACTOR: Northdale Construction Company Inc PAY ESTIMATE NO: 5 Original Contract Amount Contract Changes approved to date (List Change Order Numbers) Revised Contract Price Work Completed to Date (attached) R eta inage to Date, 5% Work Completed to Date Less Retainage to Date Total Amount Previously Certified Payment Request This Estimate $1,819,22114 50.00 $0,00 $1,637,909.51 $81,895.48 $1,556,014.03 $1,522,729.34 $33,784.69 I declare under penalty of perjury that this account, claim, or demand is just and correct and that no part of it has been Northdaie Construction Company Inc CONTRACTOR PROJECT: 2014 SE District Sewer & Water Improvements CITY: Corcoran ENGINEER: Wenck Associates QUEST # 3343919 BID DATE: 6 -19 -14 @ 10:00 am ADD. #1 4.16 -14 - Change to Spec & New Bid Form ADD. 92 ADD 2 - DATED ADD. #3 ADO 3 - DATED ITEM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 is 17 18 i9 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 35 37 38 39 40 41 42 43 44 45 46 47 48 49 50 DESCRIPTION NORTHDALE CONSTRUCTION COMPANY, ING, 9760 71 ST STREET NE ALBERTVILLE, MN 55301 Office: 763 - 4284868 Fax; 763 -4997 U TED BY• THOMAS A. WILEBSKI CELL # 612 - 369 -5954 UNIT QTY Bid Unit Bid Extension Paid Unit Paid Extension BASE BID; $86,956.00 MOBILIZATION & DEMOBILIZATION LS TRAFFIC CONTROL LS CLEARING AC GRUBBING AC CLEAR & GRUB TREE TR REMOVE BITUMINOUS PAVEMENT SY SAWING BITUMINOUS PAVEMENT LF SALVAGE & REINSTALL SIGN E4 SALVAGE & € EINSTALL CHAIN LINK FENCE LF SALVAGE & REINSTALL LIGHT BASE & POLE EA SALVAGE & RESPREAD EXISTING TOPSOIL LS COMMON EXCAVATION - EXPORT UNSUITABLE CY MATERIAL (LV) $1,706.25 COMMON EXCAVATION - ONSITE (EV) CY COMMON EXCAVATION - OFFSITE (EV) CY RELOCATE EXISTING STOCKPILE CY STREET SWEEPER WITH PICKUP BROOM HR WATER FOR DUST CONTROL MGAL AGGREGATE BASE, CLASS 5 100% CRUSHED TON TYPE SP 9.5 WEARING COURSE MIXTURE TON (SPWEA240B) 220 GEOTEXTILE FABIC, TYPE V NON -WOVEN SY DEWATERING LS IMPROVED PIPE FOUNDATION - 24" THICK LF CONNECT TO EXISTING FORCEMAIN EA 12" - 11 114 DEGREE BEND HDPE SDR•11 EA 12" - 45 DEGREE BEND HDPE SDR -11 EA 12" HDPE SDR -17 FORCEMAIN - DIRECTIONAL LF DRILL (DIPS) $1,33675 15" PVC SDR -26 SANITARY SEWER PIPE (< 15' LF depth) 920 15" PVC SDR -26 SANITARY SEWER PIPE (15' -20' LF depth) $39,308,25 16" DIP SANITARY SEWER PIPE WITRANSITION LF FITTING $5.25 4' D1A SANITARY SEWER MANHOLE EA SANITARY STRU CTURE OVERDEPTH (>12' LF DEPTH) $6,250.00 6' DIA AiR RELEASE MANHOLE= WITH VALVE EA 6" FORCENIMN OFFSET EA EXTERNAL SEALS EA 2" THICK INSULATION SY CONNECT TO EXISTING WATERMAIN EA INSTALL HYDRANT & GATE VALVE EA 14YDRANT EXTENSION EA 12" BUTTERFLY VALVE & BOX EA 24" BUTTERFLY VALVE & BOX EA 6" DIP CL 52 WATERMAIN LF 14" HDPE SDR -11 WATERMAIN - DIRECTIONAL LF DRILL (DIPS) $9,750.00 24" PVC C905 DR 25 WATERMAIN LF 14"- 11 114 DEGREE BEND HDPE SDR -11 EA 14" - 45 DEGREE BEND HDPE SDR -11 EA 14 "x B" TEE HDPE SDR -11 EA 14 "x 14" TEE HDPE SDR -11 EA DUCTILE IRON FITTINGS LB PIPE JACKING 20" STEEL CASING LF 12" CMP CULVERT LF 1 $86,956.00 $86,956.00 1 $86,956.00 1 54,860.00 $4,660.00 1 $4,860.00 2.5 $1,890.00 $4,725,00 2.1 $3,969.00 2.5 $1,690.00 $4,725.00 2.1 $3,968.00 •20 5459.00 $9,180,00 7 $3,213.00 325 $5.25 $1,706.25 10 $52,50 130 $5.45 $706,50 5 $27.25 17 $162,00 $2,764,00 1 $162.00 200 $17.01 $3,402.00 220 $3,742.20 2 $1,701.00 $3,40200 1 $1,701.00 1 $6,500.00 $6,500.00 1 36,500.00 1000 $12.75 $12,750,00 105 $1,33675 350 $5.25 $1,837.50 920 54,630.00 3083 $12,75 $39,308,25 2553 $32,550,75 500 $5.25 $2,625,00 0 $0.00 50 $125,00 $6,250.00 0 30.00 50 $24.50 $1,225 -00 0 30.00 600 $25,50 $15,300.00 568 $14,484,00 415 $85.32 $35,407.80 243 $20,732.76 1175 $4,37 $5,134.75 987 $4,313.19 1 $9,750.00 $9,750.00 1 59,750.00 2100 $21.00 344,100,00 433 $9,093.00 1 $6,427 -36 $6,427.38 1 $6427.38 1 $1,526.30 51,526.30 D $0,00 4 $1,543.75 $6,175.00 5 $7,718.75 2400 $54.22 $130,128.00 2054 5111,367.88 1650 $66.56 $142,824.00 1597 $138,236.32 500 $86.56 $43,28100 500 $43,260.00 20 $145.27 $2,905.40 20 $2,905.40 7 $3,01874 $21,131.16 6.5 $25,859 29 37 3139.66 $5,167.42 33 $4,608,78 1 $14,545.00 $14,545.00 1.35 519,835.75 1 $2,975.60 $2,975.50 0 $0.00 7 $289.48 $2,026.36 0 50.00 200 $23.59 $4,716.00 0 $0,00 3 $7,487.91 $22,463.73 3 822,463.73 7 34,967.87 $34,775.09 7 $34,775.09 7 $522.22 $5,755.54 7 $5,755.54 6 $6,062.76 $36,373.D8 4 $24,246.72 2 56,272.54 $12,545.D8 2 312,545,08 70 $41.34 $2,893.80 48 51,984.32 5475 $66.53 $364,251.75 5503 $366,114.59 100 $159.34 $15,934.00 122 319,439.48 1 $1,565.62 $1,588.82 0 $0.00 6 $1,606.51 $9,639 06 2 $3,213.02 7 $4,684,14 $32,788 9B 5.75 $25,933,81 3 $5,111.76 $15,335,25 D 50.00 22800 $0.01 $225.00 10677 $106.77 200 $379.64 $75,928.00 210 379,724.40 45 $31 -63 $1,432.35 24 $763.92 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 6S 67 68 69 70 71 72 73 74 75 76 77 78 12" CMP PES EA 2 $201.08 $402.12 2 $40212 INSTALL STRUCTURE SIGN POST AND MARKER EA 15 $161,61 $2. 415.15 11 $1,771 -11 ANTISEEPAGF COLLAR EA 3 $350.00 $1,050 d0 2 5700.00 CONSTRUCT BOLLARD EA 9 $450.00 $4,050,00 9 $050,D0 CONSTRUCT PEDFSTR64N RAMP WITH EA 1 $775.00 $775 -00 p SD 00 TRUNCATED DOMES TEMPORARY ROCK CON$TRUCT)ON EA 2 $2,500.OD $5,000.00 2 $5,00000 ENTRANCE SELECT TOPSOIL BORROW (SPECIAL} (LV) CY 100 $36.50 $3,650.00 150 $5,475.00 SODDING -TYPE LAWN SY 250 $17.23 34,307.50 0 $D 00 SEED MIXTURE - 21 -111 & STRAW MULCH AC 4,5 $1,026.00 $4,517.00 58 $5,950.80 SEED MIXTURE - 25 -141 AC 2 $4,968AD $9,936.00 2.7 $13,413.60 SEED MIXTURE - 25 -151 AC 2 $6,534.00 $13,068.00 0.2 $1,305.60 SEED MIXTURE -34 -171 AC 1 $8,100.00 $8,100,00 06 $4,560.00 EROSION CONTROL BLANKET - CATEGORY 3 SY 4500 $1.62 $7,280,00 5330 $9,634.60 TURF REINFORCEMENT MAT SY 100 $13.77 $1,377.00 20 $275,40 SALE BARRIERS - MAINTAINED LF 4200 $4.97 $20,87400 2918 $14,50146 12" BIOROLL- MAINTAINED LF 750 $4,04 $3,030.00 396 $1,599,64 SILT FENCE, MACHINE SLICED - MAINTAINED LF 2100 $3,79 $7,959.00 1330 $5,040,70 INLET PROTECTION - MAINTAINED EA 2 $250.00 S50000 2 $500.00 CULVERT PROTECTION . MAINTAINED EA 4 5275,0D $1,100.00 0 $0,00 6' B &B BLACK HILLS SPRUCE EA 1 $1,250.00 31,250,00 0 $0.00 LIFT STATION & VALVE VAULT LS 1 8176,500.00 $176,500.00 1 $176,500.00 PRE - FABRICATED CONTROLS BUILDING LS 1 $112,380.80 $112,380.80 1 $112,380.80 ELECTRICAL & CONTROLS INSTALLATION LS 1 348,600.00 $48,600.00 1 $48,600.00 ELECTRICAL SERVICE LS 1 $1,350.OD $1,350,00 1 $1,350.00 ELECTRICAL SERVICE FEEDER LF 120 $21,60 32,592.00 20 $432 -00 BACKUP GENERATOR LS 1 $55,011.86 $55,011,86 1 $55,011.86 TOTAL SASE 1310 $1,815,5511.38 $1,637,909,51 ALTERNATE41 - INSTALL WATER SERVICE: INSTALL 1" RESIDENTIAL WATER SERVICE INCL. EA 1 $1,911,13 $1,91113 $000 CORPORATION STOP, STAWLESS STEEL SADDLE, 10' OF TYPE K COPPER PIPING, CURS STOP & BOX, AND MARKER. TOTAL ALTERNATE 1 $1,911.13 $0.00 ALTERNATE 42 - INSTALL SEWER SERVICE, INSTALL 6" RESIDENTIAL SEWER SERVICE INCL. EA 1 $1,760.63 $1,760.63 $000 MANHOLE CONNFCTION, 10' OF PVG 5CHED 40 SEWER PIPE, PLUG, AND MARKER. TOTAL ALTERNATE 2 $1,760,63 SOHO TOTAL BASE 8I0 81,815,551 38 $1,637,909 51 TOTAL ALTERNATE 1 $1'73 SO 00 TOTAL ALTERNATE 2 $1,7660.60.63 $0 00 TOTAL PROJECT $1,819,223,14 $1,637,909.51 Bid Summary: Work completed to -data $1,637,909 51 5% Retsinage 581'895.48 Subtotal $ 58,014.03 Pay Estimate 1 $2 Pay Estimate 2 $09,631.65 6 $608.091,74 Pay Estimate 3 $631,647.71 Pay Estimate 4 522'80,00 Pay Estimate 5 Pay Estimate 6 $ Amount Due $0'00 50.00 $33,274.69 CERTIFICATE OF CONTRACTOR I hereby certify that the work and the materials supplied to date, as shown on the request for payment, represents the actual value of accomplishment under the terms of the contract dated July 21, 2014 between the CITY OF CORCORAN (OWNER) and Northdale Construction Company Inc. (CONTRACTOR) and all authorized changes thereto. By Title Approval: (CONTRACTOR) Thomas A. Wilebski President Northdale Construction Company Inc. Date 4/30/2015 WENCK ASSOCIATES, INC. KentTorve, P. E. Date ±; ! — CITY OF CORCORAN Date City of Corcoran: 2014 SE District Sewer & Water Emprgvemenil Pay Request §5 No. Jtam Units Bid Qty qty Qty 1p Dale Bid Unet Pries TP141 Pay Request 3t5 TOW IP Date BASE BID: 1 MOBnITATION E DEMDBILf7ATION LUMPSUM 1 0 7 $86,956,0D 5900 586,956.00 2 TRAPPICCANTROL LUMP$UM 1 C 1 $4, 460-00 $0.03 $4,860.00 3 CLEARING ACRE 7s 0 1A $1,89600 36.00 $3,968 -00 4 GAUBBING ACRE 23 0 2.1 $1,69000 50,5 $3,96940 5 CLEAR &GRUB TREE TREE 70 D 7 $459.00 $tl.I)f! $3,233.00 6 REMOVL%lurAINDUS PFL Mcm SO YO 325 0 10 $5-25 50,00 $52 S0 7 V:W1NG 81YWAINOU$ PAVEMENT LIN FT 130 0 5 $5.4S $0.00 $27.25 8 SALVAGE &REINSTALI SIGN EACH 17 0 1 $162.00 $090 $162.00 9 SALVAGE & REINSTALI CHAmRINK FENCE tVJ FT 200 0 22D $17 OS $0,00 $3,742.20 IQ SILYAGE & REINSTALL LIGHT SASE & POLE EACH 1 0 2 $1,701.00 $000 $3,70100 31 SALVAGE 6 RLSPREAD EXISTING TOPSOIL LUMPSUM 1 0 3 56,500 -DO $v.vo $6,500.09 12 COMMON EXCAVATION • EAPORT UNSU17ABLE MA71RIAl LLV) CU YO 1000 0 105 $12.75 $0,00 S1,338.75 33 COMMON EXCAVATION - ONSITE IFVI CU YO 350 40 920 $5.25 5270.00 $4,630.00 34 COMMON EXCAVATION - OFF5ITE 1EV7 CU YO 3083 0 1553 $12,75 $0.W $32,554,75 15 RELOCATE EKISTING STOCKPILE ruvb SOO 0 0 $5.25 $0.00 $€1.00 16 STREET SWEEPER WITH FiCKUP BROOM HOUR 5D D 0 $125.00 $0.00 $moo 17 WAT(P FOR DUST COMTROI MGAL SO a a $74,50 $P.GO 50.49 3E AGGREGATE BASE, CLASS 51DD% CRUSHED TON 600 36 568 $25,51) $459,00 S14,dP400 IS TYPE SP 9.$ WEARING COUiSE MIXTURE (SPWEA2400) TON 415 0 243 $8532 $0.00 $20,732.76 70 GTOTEYTRE FABIC,TYPE V NON.IVOVEN SO YD 117S 0 987 $4.37 $0 -00 $4,323.19 21 DEWATERING WMP$UI4 1 0 1 $9,750.00 $0.00 $9,750.00 72 IMPROVED pJPE FOLIN OATIDN -24 "THICK LNrl 2100 D 433 $21.06 $0 -00 $9,093.00 23 CONNECTTO"JSTINGFORCEMAIN EACH 1 0 1 $6,427 -36 $0.00 $6,427.38 24 12 "" 12 IIA DEGREE BEND HOPE SOR-I I EACH 1 D 0 S1,SZG.3D $0.00 50.00 25 12 "- 45 DEGREE BEND HOPE 51)1`14I EACH 4 D 5 $3,543.75 $0.00 $7,718.75 26 17' HOPE IDR•11 FORCE MAIN- DIRECTIONAL D III It IDIPS) ON FT 2400 0 2054 $54.22 $400 $11136288 27 WPVt SOR.26 SANITARY S"AR PIPE J- 1S'depth) LIN FY 1650 0 1557 $86.56 $0.00 $13$,236.32 28 15 "PVC SOP -26 SANITAFYSEWER PIPE {15'-20'depth3 LIN FT Sao 0 500 $BQ5G SD,Do S4d,2BD.00 29 16" DIP SANTARY SEWER PIPE RWJTkANS €TION FITTING UN PT 20 0 20 $145.27 $0,00 $2,905.40 30 W DIA$ANITARY SEWER MANHOLE EACH 7 0 B.5 $3,018.74 $0-00 $25,659.29 31 SANITARY SIAU6TURE OVEROEPTH 1712' OEPTHj UN FT 37 0 33 $139,66 $0,00 $4,608,78 12 4'DIA AIR RELEASE 7, 141140E WITH Vkl i EACH 1 0 1.35 $14,545.00 $0,00 519,635.75 33 6" FORCENMIN OFFSET EACH 1 0 0 $2,975,50 $0.00 $0.00 14 EXTERNAL SEALS EACH 7 O 0 $289,48 $0.04 50.00 34 2 "THICK INSULATION $0, YD 2U0 0 0 523S9 50,00 $0,00 35 CONNECT TO EXIST ING WATERMAIN EACH 3 0 3 $7,487,91 59.00 $22,463,73 37 INSTALLHYDRANT& GA7E VALVE EACH 7 D 7 $4,957 -87 $OAO $36,775.09 39 HYDRANT EXTENSION EACH 7 0 7 $$22. ?2 $OAO $5,755.54 39 I2" BUTTERFLY VALVE. IL BOX LOCH 6 0 4 $6,067.3$ $0.00 $24,248.72 40 24" BUTTERFLY VALVE L BOX EACH 2 a 2 $6,272,54 $0.00 $12,545.08 41 6" DIP LL 52 WATCAMA €N LIN FT 70 0 48 541 34 50.00 $1,984,92 42 14" HOPE 51)90.1 WATERMAIN - DIRECTIONAL CRIU. IMPS) UH ET 5475 0 5503 $665a $0.00 $366,114.59 43 74" PVC C505 DA 2S WATERMAIN LIN FT 100 D 122 5759.34 $0.00 $19,439.48. 44 14 "- 11 IA DEGREE REND MDPE 5OR -11 EACH 1 0 0 $1,568.42 SEIZE $0.00 45 14 ".45 DEGREE BEND HDPE SDR-31 EACH 6 0 2 $7,606.55 $0.00 $3,213.02 46 IA -xs` TEE HOPE SDR,13 EACH 7 0 5.75 $4,684,14 $O.OD $2fi,9 47 14 "x WTEE NOPF SDR-11 EACH 3 p 0 $5,111.76 $X,00 50.00 So.ao u8 DUCTILE IRON FITTINGS POUND 22500 0 50677 $0.01 $000 $106.77 49 PIPE IAC10N520 *$TUI CA51NG ON FT loo 0 214 $379,64 $0.00 $79,724,40 50 12 " CLAP CULVERT LIN FT 4$ 0 24 $3183 $0.00 $763.92 51 12 "CMF FES EACH 2 2 2 $201.06 $401 -12 $402.17 52 INSTALL STRUCTURE 5ION PO57 AND MARKER EACH 35 0 31 $161.01 $0.00 $1,771,13 53 ANTI.SEEPAGE COLLAR EACH 3 0 7 $350,00 $0.00 5701.130 $4 CONSTRUCT BOtIARO EACH 0 0 R $450.00 $4,o50.D0 55 CON51AUCT PEDESTRIAN RAMP WIT141RUNCATEDCOMES EACH 1 0 p $,SOLO $0,00 $0.40 $0.00 56 TEMPORARY ADU CONSTRUMIDN ENTRANCE EACH 2 0 2 52504.04 $3.83 $5,040.90 57 SELECT TOPSOIL BORROSY(SPECIALj iIVJ LU YO IUD ISO ISO S36SD $5.475.00 $5,475.00 56 $OWING - TYPE LAWN 50 VD 25D 0 0 S1723 $0.00 5040 59 5EE0MIXTVRE- 21-171 &.SI RAW LIULCH ACRE 45 0 5.0 $1,D26.OD $0.00 $5,950.80 60 St ED MOWTURF- 75143 ACRE 1 2.7 :,7 $4,968,00 $$1,306'60 $13,413.8a 61 SEED MIXTURE - 25=153 ACRE 7 0.2 0,2 56,514.Dc $1,806.80 $1,306.80 62 SEED MFKTUAE- 34.171 ACRE 1 06 06 58,1DC.p0 $4,866.00 S4,B6o.00 63 EROSION CONTROL BLANKET - CATWORYI Sq YD 4504 5330 S380 $1,62 $8,634.60 $$,634.0 0 64 TURF REINFDRCEMEN C MAT SQyD Im 70 20 $1377 $275.40 $275.4 65 8ALE BARAIE A$- MAINTAJNED UN FT 420C 0 2912 $4.97 $0.00 $74,502.45 6 66 11" SiOROLL- MAINTAINED LIN FL 7$0 0 396 54,04 $0,00 51,599,94 67 SILT FENCE, MACHINE SLICED - MAINTAINED LIN FT 2100 0 1390 $3.79 $0 00 $S 040 70 6F MIET PROTECTION, MAINTAINED EACH 2 0 2 $250.00 $0.00 5500.00 r9 CULVERT PROTECTION. MAI NTAINED EACH 4 o p $275.00 $0.00 $q,po 7D 6' BGB BLACK 8015 SPRUCE EACH E 0 0 $1,2SD.Op $0.60 71 LFITSTATIDN S VALVE VAULT LUMP SUM t 0 l $176,SC ❑ -09 $D,DO $0.00 $17 &,500.00 21 PAbFABRICATEU CONTROLS BUILDING LVMPSDM 1 0 1 $112,380,ap $0.00 $112,38011 73 ELECTRICAL B CONTROLS INSTALLATION LUMP SVIo 1 0 1 $48,6DO 00 $0.00 $48,600.90 74 ELECTRICAL SERVICE LUMP SUM 1 0 1 $1,35C.CD $0 -00 $1,350,00 7$ ELECTAICAL5ERY{CE FEEDER 11N n 120 0 20 $21.6U $000 $432.00 76 BACKUP GENERATOR LUMPSUM 1 0 1 $55,011,$6 $0.00 $55,031,86 sas,vas.ss s1,63r,9o�s1 ALTERNATE 01- INSTALL WAYCR $LRVICE; �NS TALLI 'R£SIDENTIALWATIRSERVICElAICL CORpORAJID11 Slop, •' Yy 77 STAINLESS STEEL SADDLE, 10 'OrTYPER COPPER PIPING, CURB STOP B EACH 1 0 D 51,911,1$ alm AND 1,LARK0. $0,00 $0 OD MOB $0,00 ALTERNATE 02 ANSTALL SEWER SEHVICF! 78 INSTpIL b' RFS}pENTWL 5F1/Eft SERVICE INCL. l�IAkHOIE CONNECi1CIN, 10' 13F PVCSCHED 4a SEWER PIPE, PLUG. AND MARP.ER. EACH 1 0 0 $1,760,63 $D 00 $000 $0,00 $0.00 SubtataT 53S,036,52 $1,637,909.51 S76 RetalAagc $1,751,83 $$1,895,48 Ray Request #< $33,294,69 $1,556,014.03 CORCORAN, MN 05/05/152:02 PM Page 1 'Check Detail Register© May 2015 Check Amt Invoice Comment 10100 Farmers State Bank Paid Chk# 023101 5111/201.5 NORTHDALE CONSTRUCTION CO INC E602-49450-530 Improvements Other Than Bldgs E 601 - 49400 -530 Improvements Other Than Bldgs 'otal NORTHDALE CONSTRUCTION CO INC 10100 Farmers State Bank Fund Summary 10100 Farmers State Bank 601 WATER 602 SEWER $13,313.88 PAY 5 PAY 5 - IMPROVEMENT PROJECT $19,970.81 PAY 5 PAY 5 - IMPROVEMENT PROJECT $33,284.60 $33,284.69 $19,970.81 $13,313.88 $33,284.60 STAFF REPORT Agenda Item 11 a. Council Meeting: Prepared By: May 11, 2015 Brad Martens Topic: Action Required: Asbestos and Hazardous Material Approval Assessment — 20112 County Road 10 Summary: In July 2013 the City Council prioritized use of the remaining TIF Funds for various projects. One of the projects selected was the removal of a hazardous property at 20112 County Road 10 which was declared hazardous at the July 26, 2012 City Council meeting. Following the declaration of being hazardous, the Council approved an order to raze and remove the building but did not act upon the order due to various circumstances. The planned use of TIF funds for this project is to purchase this property and an adjacent property, and remove the hazardous structure. In advance of staff recommending action for the purchase of the property, it is requested that the Council approve authorizing Wenck Associates to complete an asbestos and hazardous material assessment for the property. Once that is completed staff will recommend a purchase price for the property factoring in the required hazard mitigation. Financial /Budget: The City last completed asbestos and hazardous material assessment for the old Public Works facility which cost the City $1,595.38. It is anticipated costs would be similar for this property. The project will be funded out of the TIF fund, additional abatement costs will exist at time of demolition. Alignment with Values: This item relates to the following adopted values: FISCAL RESPONSIBILITY We believe that fiscal responsibility and the prudent stewardship of public funds is essential for citizen confidence in government. Options: 1. Authorize Wenck Associates, Inc. to perform an asbestos and hazardous material assessment at 20112 County Road 10. 2. Move forward with the project without an asbestos and hazardous material assessment. 3. Abandon the project. Page 2 Recommendation: Authorize Wenck Associates, Inc. to perform an asbestos and hazardous material assessment at 20112 County Road 10. Council Action: Consider a motion to authorize Wenck Associates, Inc. to perform an asbestos and hazardous material assessment at 20112 County Road 10. Attachments: N/A STAFF REPORT Agenda Item 11 b. Council Meeting: Prepared By: May 11, 2015 Brad Martens Topic: Action Required: Administration Department Transition Plan Discussion Summary: Staff is currently in the process of coordinating a reorganization of the Administration Department which eliminated two positions and created three positions. Five of the proposed nine steps have been completed. Step six will be completed when the City Clerk /Administrative Services Coordinator begins employment which is anticipated June 18th The original plan had the Administration Department retain at minimum four employees during the transition. Due to a change in the departure date of one employee and a longer than anticipated start date for the City Clerk /Administrative Services Coordinator, three employees are covering the work of the Administration Department for a period of eight weeks. Recently the City Council asked for an update on how operations would continue to function in the interim. The following is a summary of some of the action taken during this time: • Payroll and benefits information has been assigned to Jeanie Heinecke • Facility /park rentals has been assigned to Mike Pritchard • Employee recruitment processes are being coordinated by Brad Martens and appropriate supervisors • Website duties are being performed by Paula Steelman • Various duties are being tabled until a time when staff can complete them Discussions will continue to take place as items arise. Staff will soon need to discuss the summer newsletter and the upcoming 2016 budget process. It is requested that the City Council provide any feedback to staff on priorities during the transition. Financial /Budget: On February 26th staff provided an estimated budget impact of $25,000 - $26,500. The updated estimated budget impact is $29,000. The increase is due to the unanticipated separation agreement. Alignment with Values: This item relates to the following adopted values: EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES We believe that service to the public is our reason for being and strive to deliver quality services in a highly professional, cost - effective, and friendly manner. Page 2 FISCAL RESPONSIBILITY We believe that fiscal responsibility and the prudent stewardship of public funds is essential for citizen confidence in government. Options: 1. Discuss the Administration Department transition plan. Recommendation: N/A Council Action: Discuss the Administration Department transition plan. Attachments: N/A STAFF REPORT Agenda Item 11 c. Council Meeting: Prepared By: May 11, 2015 Brad Martens Topic: Action Required: Maintenance and Service Contract — JOTS Approval Computer Services, Inc. Summary: The City maintains and operates information technology necessary for the continuing operations of the organization. Until recently Police Lieutenant John Hamilton had been responsible for maintaining this infrastructure of the City. The City entered into a contract with Evolving Solutions for overall server maintenance, remote backup services and disaster recovery /business continuity in November 2014, but has yet to approve a contract for desktop support, more frequent services and day to day trouble shooting as these services were handled in house by Lieutenant Hamilton. Over the last six weeks staff has been able to get a better feel for the needs of the City and has obtained two quotes from vendors to provide maintenance for the City's information technology. The highlights of the contracts are below: JOTS Computer Services, Inc. • $75 /hour rate for services; no trip charge • Six month contract with annual renewal; contract may be terminated at any time • Services include installing security patches and updates, antivirus updates, program updates, various on -site maintenance to equipment, additional work as needed. Evolving Solutions • Base contract of $765 /month which includes 10 service calls; additional service calls $25 each; no trip charge • Additional service at $150 /hour (assistance with setting up new equipment, etc.) • $300 one -time setup fee • Agreement through December 31, 2017; contract may be terminated with 60 day notice • Services include installing security patches and updates, antivirus updates, program updates, additional work as needed. The City has had a relationship with both vendors in the past with very positive experiences. Evolving Solutions is our current contractor for server maintenance; JOTS Computer Services, Inc. President is John Hamilton who used to coordinate technology for the City. Staff has reviewed the proposals and finds the JOTS Computer Services, Inc. proposal to be preferred for the following reasons: • Lower guaranteed expense, lower hourly service rate for additional services • Lack of set -up fee Page 2 Additional on -site maintenance to equipment Knowledgeable staff that is extremely familiar with our needs Financial /Budget: The additional costs for contracting these services are an unbudgeted expense for 2015. It is anticipated that estimated costs for 2015 will be approximately $5,500. Alignment with Values: This item relates to the following adopted values: EXCELLENCE AND QUALITY IN THE DELIVERY OF SERVICES We believe that service to the public is our reason for being and strive to deliver quality services in a highly professional, cost - effective, and friendly manner. FISCAL RESPONSIBILITY We believe that fiscal responsibility and the prudent stewardship of public funds is essential for citizen confidence in government. Options: 1. Approve a service contract with JOTS Computer Services, Inc. 2. Approve a service contract with Evolving Solutions. 3. Send back to staff for further review. Recommendation: Information technology is critically important to the continued operations of the City. It is recommended that the City Council approve a service contract with JOTS Computer Services, Inc. Council Action: Consider a motion to approve a service contract with JOTS Computer Services, Inc. Attachments: 1. JOTS Maintenance & Service Contract 2. Evolving Solutions Desktop Management Services J.O.T. S. COM uter Services JOTS Computer Services, Inc. This agreement has been made on 5/5/2015 between: JOTS Maintenance & Service Contract 23120 Garrison Road Corcoran, MN 55340 -9103 Phone: 763 - 498 -6564 Web: www.jotscomputerservices.com Email: jhamilton @jotscomputerservices.com J.O.T.S. Computer Services, Inc. and its primary place of business at 23120 Garrison Road, Corcoran, MN 55340 -9103 (hereby known as the "Provider ") and City of Corcoran with its primary place of business at 8200 County Road 116, Corcoran MN 55340 and secondary place of business at 9100 County Road 19, Corcoran MN 55357 (hereby known as the "Customer "). 1. DEFINITIONS In this agreement the following words and expressions shall have the following meanings: "Agreement Period" means the period set out in clause 2. "Commencement Date" means the date set out in clause 2. "Contract Charges" means the charges specified in Appendix B to this agreement that are to be paid by the Customer for Services; "Equipment" means the equipment specified in Appendix A of this agreement; "Site" means the primary place of the customers' business; "Maintenance Charges" means the charges specified in Appendix B to this agreement that are to be paid by the Customer for Services; "Maintenance Services" means preventative maintenance and remedial maintenance services required to keep the Customers equipment in good work- ing condition and specified in clause 4c. "Remedial Maintenance Services" means maintenance services requested by the client as specified in clause 4f and g. "Renewal Period" means the period set out in clause 2. "Service Hours" means hours between 8:00 am and 5:00 pm unless otherwise agreed upon for specific project. 2. TERM & FEES This agreement shall commence on 5/5/2015 and shall remain in full force for the period of 6 months unless terminated in accordance to clause 9. Thereafter, this agreement will automatically renew for a renewal period of 12 month(s), provided that the Customer pays the current monthly mainte- nance service fee to the Provider, or unless either party terminate this agreement in accordance to clause 8. All invoices for services rendered shall be payable within 35 days (government) of receipt payable by the Customer. Provider and its employees shall not be considered employees of the Customer. Provider maintains current Business Insurance and Auto Insurance. 3. MAINTENANCE CHARGES a. The Maintenance Charges shall cover all services provided in clause 4. However, the Maintenance Charges will not cover the costs of any parts, software, manuals, materials, travel or other disbursements which may be necessary or requested by the customer. The customer will be billed separately for these costs as they occur. b. Maintenance Charges are payable to the Provider. C. The Customer shall pay all other costs within 35 days (Government) of receipt of invoice. d. The Provider shall be entitled to adjust the monthly maintenance charge by giving the Customer 60 day's written notice and will take effect when the next maintenance charge is due. e. No such adjustment will take place within the initial Agreement Period. Page 1 of 4 ELY, F_11►1i4P /_1LL11 *14laylDIV The Provider agrees to provide the Maintenance Services to the Customer in respect of the Windows -based equipment on the terms and condi- tions set out in this agreement. b. The Provider shall provide preventative maintenance services during the service hours at intervals necessary to keep the Equipment in good working condition. C. After the signing of this agreement, in exchange for the payment of the Maintenance Charge, the Provider may perform the following desktop maintenance services: • Installing Microsoft Windows and Microsoft Office security patches and stability updates • Antivirus, Anti - spyware and Anti - adware program updates • Scan for any viruses, adware or spyware and remove them if found • Installing of program updates and security patch files. • Remove unnecessary programs • Prevent unnecessary programs from automatically starting when the computer boots • Listen for possible problems with moving parts in the computer such as fans and hard drives during on -site visits. • Clean air vents, fans, keyboard, screen and computer mouse during on -site visits. • And any other additional services as needed or directed by the customer. d. All additional work not listed above shall be performed at the Provider's sole discretion and at its then - current standard hourly rates. Additional work is subject to other written agreements the Provider may require. e. Maintenance will commence on a mutually agreed upon date and time, and will be performed monthly (usually one time per month). f. The Provider shall provide additional remedial maintenance services during the Service Hours when notified by the Customer that the Equip- ment is inoperative. The Customer shall pay the charges (normal hours) as specified in Appendix B of this agreement. The Provider shall en- deavor to respond promptly and if possible, within 48 hours to requests for remedial maintenance. g. The Provider shall only provide remedial maintenance outside the Service Hours only if requested by the Customer, for which the Customer will pay the charges for Abnormal Hours specified in Appendix B. J.O.T.S. Computer Services, Inc. shall not be obliged to maintain the equipment in good working order if such service is required as a result of: (a) fire, storm, accidents ; or (b) unauthorized attempts by other than J.O.T.S. Computer Services, Inc. personnel to repair the equipment; or (c) causes other than normal wear and tear including failure of equipment not maintained by J.O.T.S. Computer Services, Inc. or non - J.O.T.S. Computer Services, Inc. supplied consumable items, negligence of or misuse of the equipment and operator error; or (d) causes external to the equipment such as transportation, fluctuations or failure of power, electromagnetic interference or material changes to the prescribed environmental conditions. S. CUSTOMER'S OBLIGATIONS The Customer will cooperate with the Provider in connection with the Provider's performance and provide full and free access to the Equip- ment, adequate working space and facilities such as electrical outlets within a reasonable distance from the Equipment. b. The Customer shall obtain, keep and make available to the Provider machine readable copies of all programs, operating systems, drivers and data files relating to the Equipment. The Provider does not assume any liability as a consequence of the Customers inability to use its machine readable data. C. The Customer shall not modify, create any derivative work of, or incorporate any other equipment into the network or any portion thereof. The Provider shall not be responsible for any maintenance of, or the repair of problems or malfunctions caused by any modification or enhance- ments made by the Customer or by anyone else other than the Provider. Page 2 of 4 6. BACK -UP AND DATA LOSS WAIVER Any additional labor incurred in attempting to recover lost files while the Customer has not maintained proper backup procedures will be charged at the Provider's charges (normal hours) specified in Appendix B. Customer is solely responsible for their data and will not, regardless of circumstances, hold J.O.T.S. Computer Services, Inc. liable for any data loss. Data loss experienced during any procedure will be restored from Customer backup, if available, to its original location and will be charged at the Provider's charges (normal hours) specified in Appendix B. At no time during the recovery or maintenance procedures will the Provider be responsible for data loss, downtime, or loss of business. 7. WARRANTIES AND LIMITATION OF LIABILTY Maintenance Service provided under this agreement does not guarantee un- interrupted operation of the Customers computers, peripherals and network related to regular work. b. The Provider, its directors, officers, employees and /or consultants are not liable for any damage, including loss of business, loss of profits, loss of opportunity or any other indirect or consequential loss of damage whatsoever in connection with the Provider's performance under this agreement and the Customer hereby indemnifies the Provider in respect of same. C. The Provider has no responsibility for or liability to correct, validate, bring into compliance or make any other remedy any problem with the programs that is caused in whole, or in part by the improper or inadequate installation of the Customer, or any incompatibility of the Customers environment, hardware or software with the programs. 8. INDEMNIFICATION a. The Customer agrees to defend, hold harmless and indemnify J.O.T.S. Computer Services, Inc. for any and all claims, causes of action, damages, demands, fine, liabilities, and penalties arising out of the Customer's breach of any warranty made by the Customer pursuant to this Agreement. The Customer further agrees to defend, hold harmless and indemnify I.O.T.S. Computer Services, Inc. for any and all claims, causes of action, damages, demands, fine, liabilities, and penalties arising out of the Customer's negligent or reckless acts or omissions arising out of this Agree- ment. 9. TERMINATION a. The Provider may terminate this agreement at any time by giving at least 15 days prior written notice to the Customer. b. The Customer may terminate this agreement immediately at any time provided that it is responsible for the full amount of all maintenance payments due though the end of the term. C. Either party may terminate this agreement immediately at any time by notice in writing if: The other party commits a breach of this agreement and fails to remedy it within a reasonable amount of time: or The other party ceases to continue its business or substantially the whole of its business; or The other party is declared insolvent or a liquidator, manager, trustee, receiver or similar officer is appointed over any of its assets. This Agreement may be terminated by J.O.T.S. Computer Services, Inc. (i) immediately if Customer fails to pay any fees hereunder; or (ii) if Customer fails to cooperate with J.O.T.S. Computer Services, Inc. or hinders 1.O.T.S. Computer Services, Inc.'s ability to perform the maintenance services hereunder. 10. GOVERNING LAW AND JURISDICTION This agreement shall be governed by and construed in accordance to the law of Minnesota, United States of America. The parties submit to exclusive jurisdiction of the courts of Minnesota, United States of America. 11. NOTICES Any notice to be given by either party to the other may be sent by either email or recorded delivery to the most recent email address or address notified to the other party, and if sent by email shall unless the contrary is proved be deemed to be received on the day it was sent or if sent by recorded delivery shall be deemed to be served 2 days following the date of posting. 12. NON WAIVER The failure of either the Customer or the Provider to insist upon strict performance of any of the provisions contained herein shall in no way constitute a waiver of future violations of the same or any other provision. 13. THIRD PARTY RIGHTS This agreement does not create any rights in any third parties, except assigns, successors of heirs expressly permitted hereunder. Page 3 of 4 MAINTENANCE AND SUPPORT • from previous page APPENDIX A Scope of work — The City of Corcoran has an IT Vendor which maintains the servers, routers, automated back -ups and other hard- ware directly related to the server. J.O.T.S. Computer Services, Inc. will focus on desktop maintenance and desktop support. J.O.T.S. Computer Services, Inc. will work with customer on specific projects as needed and mutually agreed upon. J.O.T.S. Computer Services, Inc. will work with customer to use the CDWg government account to purchase IT equipment. On rare occasions, J.O.T.S. Computer Services, Inc. will seek out best pricing and add 10% to lowest price. APPENDIX B THE •• • thorized Signature Authorized Signature John Hamilton Brad Martens Name (Print or Type) Name (Print or Type) Its President City of Corcoran, Administrator Title Title 5/5/2015 Date Date See 2015 Rate Sheet Waive monthly contract fee of $50 as no daily monitoring re- quired by JOTS. Provide contract discount rate —All service fee will be dis- counted at "Remote Client Support" of $75.00 per hour. Monthly Invoice submitted to customer. Page 4 of 4 J. O. T. S. Computer Services, Inc. F j 20 Garrison Road • Corcoran . Minnesota • 55340 -9103 Bus # (763) 498 -6565 Fax # (763) 498 -6565 ohn @ jotscomputerservices.com www.jotscomputerservices.com 2015 Rate Sheet Service Type I Hourly Rate Rate w/ Contract *Emer enc Service Cali "�/-UIU.vv $'-I Ou.00 On -Site Server Support $125.00 $95.00 On -Site Client Support $100.00 $85.00 Remote Server Support $95.00 $85.00 Remote Client Support $85.00 $75.00 Can -Site Training $75.00 $65.00 Trip Charge $45.00 No Charge Pick -up / Delivery PC $25.00 No Charge Minimum On -site Billing 2 hours 1 hour * *Annual Contract Rate N/A $50.00 Monthly Annual Contract Rate Includes the Following: 1. Discounted Hourly Rates 2. Review of Daily Server Performance Reports 3. Minimum Billing 1 hr and .5 increments there after 4. Priority Service over clients with no contract 5. No trip charge for drive time to / from business site 6. No charge for pick and delivery of computers repaired off site *Emergency Service Call — when on site service is required without 24 hour notice. * *Annual Contract — monthly invoice line item. MC C E R T I F I F Professional Criminal Justice Information System Security & Awareness Training u,.(CI INOR04A, r 4 AWAREKSO I - This is to certify that John Hamilton has successfully completed the CJIS Security & Awareness Course by completing the following exam: Level 3 CJIS Security Test This certification expires two February 27, 2015 years from the date of issuance. February 27, 2017 Certification Date Expiration Date Certification —= Minnesota Bureau of Criminal Apprehension This is to certify that John A. Hamilton has successfully completed the exam for Mobile Access Certification on March 2, 2015 This certificate is valid until March 2, 2017 E-VO LV I NAG S 0 L U T 1 0 N S Desktop Management Services and automated desktop backup Preparing for the Future City of Corcoran Prepared by: Evolving Solutions, Inc. April 22, 2015 City of Corcoran E OLVING Desktop Management Desktop Management and Backup Evolving Solutions will provide patch management, monitoring and automate the backup of the City of Corcoran's desktops. Evolving Solution will install: • Monitoring software • Desktop backup software Managed Services Desktop Support: Monthly Bill Rate: Additional $765 to be added to current monthly billing • Pricing based on supporting 15 desktops • Monthly help desk calls increase to a total of 10. Additional calls are $2S each • Prime shift work (8 am — 5 pm, M — F) • Off shift hours will be billed separately at a rate of $150.00 per hour Invoicing: Monthly in advance Terms of the agreement: • The Master Service Agreement will be in place until December 31, 2017. Should the City of Corcoran decide to terminate the agreement sooner, a 60 day written notice is required. One time setup tasks: • Physical Inventory of all desktops • Documentation of serial numbers and OS levels • Perform a health check on current desktops o Note: resolution of existing server or desktop problems will be billed separately • Install monitoring and backup software • Configure to communicate with the Evolving Backup Server A one -time setup fee of $300 Next steps: If you would like to engage with Evolving Solutions to support your desktops and setup an automated backup for them, we will send a change request to you to add to your current statement of work that will reflect the above additions. The change order request will be signed by both entities. City of Corcoran Desktop backup and support 4/22/2015 Prepared by: Evolving Solutions Page 1 Confidential City of Corcoran 2015 City Council Schedule Agenda Item 13. May 28, 2015 • Jacob Coleman — Erik Paulson's office • Street Naming Policy • Liquor Ordinance Update — Strong Beer • Recycling Contract • Performance Report • Conditional Offer for Police Officer • Public Works Recruitment • Dust Control Public Hearing • Elected Officials Emergency Management Handbook Overview June 11, 2015 • Review Draft of updated Sign Ordinance • Consider approving night to unite program • Approve future street names June 25, 2015 • Review survey results from downtown business owners, present updated feasibility plan; consider opportunity to establish business group • Performance Report • Request to amend gambling ordinance • Ravinia 3rd Addition Final PUD Development Plan • Discussion on City logo July 9, 2015 July 23, 2015 • Consider approval of updated Sign Ordinance • Public Hearing: assessments for downtown utility and street improvement project; consider ordering plans and specifications • Performance Report August 13, 2015 • Review plan to pave gravel collector road; select project August 27, 2015 Page 1 of 2 City of Corcoran 2015 City Council Schedule Agenda Item 13. • Draft assessment policy for paving gravel collector roads • Performance Report September 10, 2015 • Approve assessment policy for paving gravel collector roads • Adopt Preliminary Levy September 24, 2015 • Performance Report October 8, 2015 (also hold Charter commission meeting) • Public Hearing: assessments for paving gravel collector road; consider ordering plans and specifications October 22, 2015 • Performance Report November 12, 2015 November 23, 2015 (Monday) • Consider authorizing bids for downtown utility and street improvement project • Consider authorizing bids for paving gravel collector road • Performance Report December 10, 2015 • Truth -in- Taxation Hearing December 21, 2015 (Monday) • Adopt 2015 Budget and Levy • Consider approving bid for downtown utility and street improvement project • Consider approving bid for paving gravel collector road • Performance Report Page 2 of 2