HomeMy WebLinkAbout2016-05-12 Council Agenda Packet CITY OF CORCORAN
*Includes Materials - Materials relating to these agenda items can be found in the House Agenda Packet by
Door.
Corcoran City Council Agenda
May 12, 2016 -7:00pm
1. Call to Order / Roll Call
2. Pledge of Allegiance
3. Agenda Approval
4. Open Forum
5. Presentations
a. Shaun Irwin – Anderson Insurance and Investment Agency, Inc.
6. Consent Agenda
a. Draft Minutes of April 28, 2016 Council Meeting*
b. Resolution 2016-36 Accepting Firearms Safety Donation from Armand Brachman*
c. Resolution 2016-37 Dedicating 2015 Funds Towards Increasing the Unrestricted Fund
Balance and Dedicating Funds Towards Long Range Planning*
d. Resolution 2016-39 Approving the BCA Master Joint Powers Agreement and Court
Amendment
e. Resolution 2016-38 Accepting Firearms Safety Donations*
7. Claims as Presented
a. Escrow Claims (Fund #500)*
b. All Other Financial Claims*
8. Staff Reports / Memos / Commissions
a. Solar Ordinance Workshop*
9. Planning Business
10. Unfinished Business
11. New Business
a. 2015 Audit*
b. Compensation Study Survey Results*
c. Crew Leader Appointment – Brandon Heinz*
12. Unscheduled Items
13. 2016 Council Schedule*
14. Council Liaison Calendar
Planning Commission
5/05/16 6/02/16 7/07/16 8/14/16 9/01/16
Guenthner LaFave Keefe Hank Thomas
Parks and Trails Commission
5/17/16 6/21/16 7/19/16 8/16/16 9/20/16
LaFave Keefe Hank Thomas Guenthner
15. Adjournment
CITY OF CORCORAN
City Council Meeting Minutes
April 28, 2016 - 7:00pm
The Corcoran City Council met on April 28, 2016, at City Hall in Corcoran, MN.
Present were Mayor Guenthner, Councilor Hank, Councilor Keefe, Councilor LaFave, and Councilor
Thomas.
Also present were City Administrator Martens, City Planner Lindahl, Director of Public Safety
Gottschalk, and City Clerk/Administrative Services Coordinator Beise.
1. Call to Order / Roll Call
Mayor Guenthner called the meeting to order at 7:00pm.
2. Pledge of Allegiance
Mayor Guenthner invited all in attendance to rise and join in the Pledge of Allegiance.
3. Agenda Approval
City Administrator Martens noted a change in the order of Item 9b. and 9a. Item 9b. Ravinia 4th
Addition PUD Final Plan and Plat should be reviewed prior Item 9a., vacating the easements for
that Ravinia 4th Addition project.
MOTION: made by Thomas, seconded by Hank to approve the agenda as amended.
Voting Aye: Guenthner, Hank, Keefe, LaFave, and Thomas
(Motion carried 5:0)
4. Open Forum
Michelle Mathews, Minnesota Solar addressed the Council regarding the solar ordinance
discussion on the agenda. Ms. Mathews addressed concerns raised at the last City Council meeting
noting the limits of substations, zoning concerns, and the timeline relating to the request and
applications with Xcel.
Julie Newstrom, 6471 Carriage Way, addressed the Council regarding the Ravinia 4th Addition
approvals on the agenda. Ms. Newstrom noted concerns on the proposed lot size change, change
in product style and concerns with the aesthetics of the new product styles.
5. Presentations – Annual Fire Department Reports
a. Hanover
Fire Chief Malewicki presented the report, noting the calls for service in 2015; average response
time for Corcoran was ten minutes, and budget information.
b. Loretto
Fire Chief Leuer presented the report, noting there are currently 30 members of which eight are
Corcoran residents. Fire Chief Leuer noted that there were 61 calls for service in 2015 for Corcoran,
the department is working on a purchase of a new rescue pumper and completing a shared service
grant process with Long Lake, Maple Plain, and Mound.
c. Rogers
Fire Chief Feist presented the report noting of the total 436 calls for service, 76 were for Corcoran,
the department is completing an iPad project putting iPads in fire trucks and a SCBA project
replacing SCBA equipment.
6. Consent Agenda
a. Draft Minutes of April 14, 2016 Council Meeting
b. Resolution Rescinding Resolution 2016-21
c. Elm Creek Watershed Commissioner Appointment – Jonathan Bottema
d. Hennepin County e-Pollbook Agreement
MOTION: made by LaFave, seconded by Hank to approve the consent agenda as presented.
Voting Aye: Guenthner, Hank, Keefe, LaFave and Thomas
(Motion carried 5:0)
7. Claims as Presented
a. Escrow Claims (Fund #500)
MOTION: made by Thomas, seconded by Keefe to approve the escrow claims as presented.
Voting Aye: Guenthner, Hank, Keefe, LaFave and Thomas
(Motion carried 5:0)
b. All Other Financial Claims
MOTION: made by Keefe, seconded by Hank to approve all other claims as presented.
Voting Aye: Guenthner, Hank, Keefe, LaFave and Thomas
(Motion carried 5:0)
8. Staff Reports / Memos/Commissions
a. Planning Project Update; report received.
b. Code Compliance Report; report received.
Councilor LaFave inquired about providing additional information on the report. City Administrator
Martens noted staff would review the report format.
c. Assessing Contract Review
City Administrator Martens presented the report noting that staff has received three quotes, after a
review staff will be providing a recommendation in May.
9. Planning Business / Landform
b. Ravinia 4th Addition PUD Final Plan and Plat (City File 16-004)
City Planner Lindahl presented the report, noting that the plan presented had 55-foot lots creating
11 additional lots from the original PUD and an alternative cul de sac plan. Councilors discussed
their opinions on lot size. Council also discussed their concerns on the cul de sacs not being
irrigated and Lennar not building the cul de sac to the submitted plans. Councilor LaFave noted she
was going to vote against the motion as she isn’t in favor of smaller lots and would rather see
townhomes in the plan. Paul Tabone, Lennar Corporation addressed the Council on the cul de sac
issue noting that there was no mal-intent on the change in the field from an irrigated system to
rocks, rather a change in the field to solve a challenge.
MOTION: made by Hank, seconded by Thomas to approve Resolution 2016-33 Approving Final
PUD Development Plan for ‘Ravinia 4th Addition’ for Property at Gleason Parkway and County Road
101.
Voting Aye: Guenthner, Hank, Keefe, and Thomas Voting Nay: LaFave
(Motion carried 4:1)
a. Public Hearing – Ravinia 4th Addition Vacation (City File 16-004)
City Planner Lindahl presented the report, noting that there were easements that were to be
vacated as they are no longer needed.
Mayor Guenther opened the public hearing. No persons were present to speak on the matter.
MOTION: made by Hank, seconded by Thomas to close the public hearing.
Voting Aye: Guenthner, Hank, Keefe, LaFave, and Thomas
(Motion carried 5:0)
MOTION: made by Thomas, seconded by Hank to approve Resolution 2016 – 27, Resolution 2016-
28, Resolution 2016-29, Resolution 2016-30, Resolution 2016-31 and Resolution 2016-32 for the
vacation of easements.
Voting Aye: Guenthner, Hank, Keefe, LaFave, and Thomas
(Motion carried 5:0)
City Planner Lindahl noted the final plat resolution had not been motioned on in the previous
discussion.
MOTION: made by Keefe, seconded by Thomas to approve Resolution 2016 – 34 Approving Final
Plat and Development Contract for ‘Ravinia 4th Addition’ for Property at Gleason Parkway and
County Road 101.
Voting Aye: Guenthner, Hank, Keefe, LaFave, and Thomas
(Motion carried 5:0)
b. Park Dedication Ordinance Amendment – Draft for Council Review (City File 16-005)
City Planner Lindahl introduced Anne Hurlburt from Landform to present the report. Ms. Hurlburt
outlined the historical approach to park dedication, the challenge of equity in the current park
dedication system for non MUSA and MUSA and the proposed change to a per capita formula. Ms.
Hurlburt noted that due legal changes the ordinance and fee structure will need to be reviewed
annually. Council discussed thoughts on the proposed ordinance amendment and removing the
minimum fee language. Per consensus, Council directed staff to move forward with the schedule as
presented based on the discussion.
d. Solar Ordinance Discussion (City File 16-008)
City Planner Lindahl presented the report. Council discussed their preference for a non-Council
meeting night during the week of a Council meeting. City Planner Lindahl noted she was intending
to invite Xcel Energy, community solar companies, residential solar representatives and possibly a
planner in a neighboring community. Per consensus, Council directed City Administrator Martens to
conduct a poll of available times and pick a date based on availability.
10. Unfinished Business
a. 2015 Surplus Allocation
City Administrator Martens presented the report outlining available options for places additional
funds in reserves and the estimated costs of additional planning items that could be reviewed.
Council discussed their thoughts on progressing towards the City’s reserves goals, planning
projects and additional staffing rather than consultants. Per consensus, Council directed staff to
allocate $150,000 of the surplus toward reserves and to allocate the remainder to a fund for
planning items to further be decided upon.
New Business
a. 2016 Road Stabilization Program
City Administrator Martens presented the report noting the cost estimates for 2016 are reduced due
to favorable bids. Council discussed where the additional saving on the project could be allocated.
Per consensus, Council directed the additional savings costs to be applied to all dust control
assessments.
MOTION: made by Keefe, seconded by LaFave to approve Resolution 2016-35 Calling for a Public
Hearing on the Potential Assessment of Costs of Dust Control Treatments to be Applied to City
Streets in 2016.
Voting Aye: Guenthner, Hank, Keefe, LaFave, and Thomas
(Motion carried 5:0)
11. Unscheduled Items
No unscheduled were presented.
12. 2016 Council Schedule
City Administrator Martens reviewed the Council schedule. Council cancelled the May 12th work
session.
13. Council Liaison Calendar
The Council liaison calendar was not reviewed, but was available in the Council Packet.
14. Adjournment
MOTION: made by Keefe, seconded by Hank to adjourn.
Voting Aye: Guenthner, Hank, Keefe, LaFave, and Thomas
(Motion carried 5:0)
Meeting adjourned at 9:44pm.
________________________________
Jessica Beise – City Clerk/Administrative Services Coordinator
City of Corcoran May 12, 2016
County of Hennepin
State of Minnesota
RESOLUTION NO. 2016-36
Page 1 of 1
Motion By:
Seconded By:
A RESOLUTION ACCEPTING A DONATION TO THE CORCORAN POLICE FIREARMS SAFETY
PROGRAM
WHEREAS, the City Council of the City of Corcoran, Minnesota, does hereby find as follows:
WHEREAS, the City of Corcoran supports the efforts of the 35th Annual Corcoran Police Firearms
Safety Program; and
WHEREAS, the following has made a contribution to the City of Corcoran to be utilized in support of
the Corcoran Firearms Safety program;
Armand Brachman $3,000
NOW THEREFORE BE IT RESOLVED, the City Council of the City of Corcoran acknowledges the
outstanding efforts by the Fire Arms Safety Committee, and the generosity of all donors and graciously
accepts the financial donation listed above.
VOTING AYE VOTING NAY
Guenthner, Ken Guenthner, Ken
Hank, Pat Hank, Pat
Keefe, Mike Keefe, Mike
LaFave, Tonya LaFave, Tonya
Thomas, Ron Thomas, Ron
Whereupon, said Resolution is hereby declared adopted on this 12th day of May 2016.
________________________________
Ken Guenthner - Mayor
ATTEST:
City Seal
____________________________________
Jessica Beise – City Clerk/Administrative Services Coordinator
6b.
City of Corcoran May 12, 2016
County of Hennepin
State of Minnesota
RESOLUTION NO. 2016-37
Page 1 of 1
Motion By:
Seconded By:
RESOLUTION DEDICATING 2015 FUNDS TOWARDS INCREASING THE
UNRESTRICTED FUND BALANCE AND DEDICATING FUNDS TOWARDS LONG RANGE
PLANNING
WHEREAS, the City of Corcoran ended the 2015 year with a surplus of $311,432 primarily
due to increased building permit revenue; and
WHEREAS, debt service for the City Hall facility expansion has been completed and the fund
has a remaining balance of $11,145; and
WHEREAS, the fund for the County Road 19 trail project has a remaining balance of
$10,060; and
WHEREAS, the total of the surplus along with the available funds as mentioned above totals
$332,337and the City wishes to dedicate those funds to other needs.
NOW, THEREFORE, BE IT RESOLVED by the Corcoran City Council:
1.An amount of $39,442 be dedicated to eliminate an unfunded liability for
outstanding developer receivables;
2.An amount of $150,000 be dedicated towards increasing the City’s unrestricted
fund balance;
3.The remaining balance from the City Hall facility expansion and County Road
19 trail projects totaling $21,205 be transferred to the general fund;
4.The remaining amount above and beyond the previous commitments, including
the remaining funds described in item number three be dedicated to a fund for
long range planning for the City.
VOTING AYE VOTING NAY
Guenthner, Ken Guenthner, Ken
Keefe, Mike Keefe, Mike
LaFave, Tonya LaFave, Tonya
Hank, Pat Hank, Pat
Thomas, Ron Thomas, Ron
Whereupon, said Resolution is hereby declared adopted on this 12th day of May, 2016.
___________________________________
Kenneth Guenthner - Mayor
ATTEST:
____________________________________
City Seal
Jessica Beise– City Clerk/Administrative Services Coordinator
6c.
City of Corcoran May 12, 2016
County of Hennepin
State of Minnesota
RESOLUTION NO. 2016-38
Page 1 of 1
Motion By:
Seconded By:
A RESOLUTION RECOGNIZING THE CORCORAN POLICE FIREARMS SAFETY PROGRAM
WHEREAS, the City Council of the City of Corcoran, Minnesota, does hereby find as follows:
WHEREAS, the City of Corcoran supports the efforts of the 35th Annual Corcoran Police Firearms
Safety Program; and
WHEREAS, the 2016 training team consisted of Lieutenant Ryan Burns, Officers Steve Warren,
Duane Hochstetler, Jesse Olson, Police Clerk Paula Steelman and members of the Corcoran Police
Reserves, Public Works Supervisor Pat Meister and Public Works Staff, Minnesota DNR Conservation
Officer Leah Weyandt, Community Volunteers Brent Anderson, Paul Schutte, Donald Finnvik, Dean
Hochstetler, Mark Bauer, Dave Kramer, Val Nybo, Mike Nybo, Justin White, George Gmach, Lee Pauman,
Dustin Hochstetler, Amy Anderson, Carrie White, Josh Steelman, Cody Steelman, Adam Noreen, Kelsey
Finnvik; and
WHEREAS, the following donors have made a contribution to the City of Corcoran to be utilized in
support of the Corcoran Firearms Safety program;
Corcoran Lions $ 750
Northwest Area Jaycees $ 1,000
Maple Grove Lions $ 1,000
Hanover Athletic Association $ 1,000
Farmers State Bank of Hamel $ 525
NOW THEREFORE BE IT RESOLVED, the City Council of the City of Corcoran acknowledges the
outstanding efforts by the Fire Arms Safety Committee, and the generosity of all donors and graciously
accepts the financial donations as listed above.
VOTING AYE VOTING NAY
Guenthner, Ken Guenthner, Ken
Hank, Pat Hank, Pat
Keefe, Mike Keefe, Mike
LaFave, Tonya LaFave, Tonya
Thomas, Ron Thomas, Ron
Whereupon, said Resolution is hereby declared adopted on this 12th day of May 2016.
________________________________
Ken Guenthner - Mayor
City Seal
ATTEST:
____________________________________
Jessica Beise – City Clerk/Administrative Services Coordinator
6e.
STAFF REPORT Agenda Item 6d.
Council Meeting:
May 12, 2016
Prepared By:
Matt Gottschalk
Topic:
BCA Master Joint Powers Agreement
Action Required:
Resolution Approving Joint Powers
Agreement and Court Amendment
Summary:
The Minnesota Bureau of Criminal Apprehension (BCA) is statutorily required to provide
a criminal justice data communications network to law enforcement agencies in
Minnesota, also known as (CJDN). Use of this data is necessary for day to day law
enforcement operations. The resolution and Joint Powers Agreement with the BCA is
required for network access. The Court Amendment allows the Police Department to
access and submit to Court Records through the BCA system.
Financial/Budget:
The annual fees for this agreement are $180.00 and the BCA is the only entity that
provides this service in the state.
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.
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.
Council Action:
Approval
Attachments:
Resolution 2016-39
Corcoran Police Department and Minnesota Bureau of Criminal Apprehension Joint
Powers Agreement
Court Data Services Subscriber Amendment to the Criminal Justice Data Network
Subscriber Agreement
City of Corcoran May 12, 2016
County of Hennepin
State of Minnesota
RESOLUTION NO. 2016-39
Motion By:
Seconded By:
RESOLUTION APPROVING STATE OF MINNESOTA JOINT POWERS AGREEMENTS WITH
THE CITY OF CORCORAN ON BEHALF OF ITS CITY ATTORNEY AND POLICE
DEPARTMENT
WHEREAS, the City of Corcoran on behalf of its Prosecuting Attorney and Police Department
desires to enter into Joint Powers Agreements with the State of Minnesota, Department of
Public Safety, Bureau of Criminal Apprehension to use systems and tools available over the
State’s criminal justice data communications network for which the City is eligible. The Joint
Powers Agreements further provide the City with the ability to add, modify and delete
connectivity, systems and tools over the five year life of the agreement and obligates the City to
pay the costs for the network connection.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Corcoran, Minnesota as follows:
1.That the State of Minnesota Joint Powers Agreements by and between the State of
Minnesota acting through its Department of Public Safety, Bureau of Criminal Apprehension and
the City of Corcoran on behalf of its Prosecuting Attorney and Police Department, are hereby
approved. Copies of the two Joint Powers Agreements are attached to this Resolution and
made a part of it.
2.That the Director of Public Safety, Matt Gottschalk, or his or her successor, is designated the
Authorized Representative for the Police Department. The Authorized Representative is also
authorized to sign any subsequent amendment or agreement that may be required by the State
of Minnesota to maintain the City’s connection to the systems and tools offered by the State.
To assist the Authorized Representative with the administration of the agreement, the City
Administrator is appointed as the Authorized Representative’s designee.
3.That the City Attorney, or his or her successor, is designated the Authorized Representative
for the Prosecuting Attorney. The Authorized Representative is also authorized to sign any
subsequent amendment or agreement that may be required by the State of Minnesota to
maintain the City’s connection to the systems and tools offered by the State.
To assist the Authorized Representative with the administration of the agreement, the City
Administrator is appointed as the Authorized Representative’s designee.
4.That Ken Guenthner, the Mayor for the City of Corcoran, and Jessica Beise, the City Clerk,
are authorized to sign the State of Minnesota Joint Powers Agreements.
VOTING AYE VOTING NAY
Guenthner, Ken Guenthner, Ken
Hank, Pat Hank, Pat
Keefe, Mike Keefe, Mike
LaFave, Tonya LaFave, Tonya
Thomas, Ron Thomas, Ron
6d.
City of Corcoran May 12, 2016
County of Hennepin
State of Minnesota
RESOLUTION NO. 2016-39
Whereupon, said Resolution is hereby declared adopted on this 12th day of May 2016.
________________________________
Ken Guenthner - Mayor
ATTEST:
____________________________________ City Seal
Jessica Beise – City Clerk/Administrative Services Coordinator
SWIFT Contract # 108225
MN0273100
1
STATE OF MINNESOTA
JOINT POWERS AGREEMENT
AUTHORIZED AGENCY
This agreement is between the State of Minnesota, acting through its Department of Public Safety, Bureau of Criminal
Apprehension ("BCA") and the City of Corcoran on behalf of its Police Department ("Agency").
Recitals
Under Minn. Stat. § 471.59, the BCA and the Agency are empowered to engage in those agreements that are necessary to
exercise their powers. Under Minn. Stat. § 299C.46 the BCA must provide a criminal justice data communications
network to benefit authorized agencies in Minnesota. The Agency is authorized by law to utilize the criminal justice data
communications network pursuant to the terms set out in this agreement. In addition, BCA either maintains repositories
of data or has access to repositories of data that benefit authorized agencies in performing their duties. Agency wants to
access these data in support of its official duties.
The purpose of this Agreement is to create a method by which the Agency has access to those systems and tools for which
it has eligibility, and to memorialize the requirements to obtain access and the limitations on the access.
Agreement
1 Term of Agreement
1.1 Effective date: This Agreement is effective on the date the BCA obtains all required signatures under Minn.
Stat. § 16C.05, subdivision 2.
1.2 Expiration date: This Agreement expires five years from the date it is effective.
2 Agreement between the Parties
2.1 General access. BCA agrees to provide Agency with access to the Minnesota Criminal Justice Data
Communications Network (CJDN) and those systems and tools which the Agency is authorized by law to access via
the CJDN for the purposes outlined in Minn. Stat. § 299C.46.
2.2 Methods of access.
The BCA offers three (3) methods of access to its systems and tools. The methods of access are:
A.Direct access occurs when individual users at the Agency use Agency’s equipment to access the BCA’s
systems and tools. This is generally accomplished by an individual user entering a query into one of BCA’s
systems or tools.
B.Indirect access occurs when individual users at the Agency go to another Agency to obtain data and
information from BCA’s systems and tools. This method of access generally results in the Agency with indirect
access obtaining the needed data and information in a physical format like a paper report.
C.Computer-to-computer system interface occurs when Agency’s computer exchanges data and information
with BCA’s computer systems and tools using an interface. Without limitation, interface types include: state
message switch, web services, enterprise service bus and message queuing.
For purposes of this Agreement, Agency employees or contractors may use any of these methods to use BCA’s
systems and tools as described in this Agreement. Agency will select a method of access and can change the
methodology following the process in Clause 2.10.
2.3 Federal systems access. In addition, pursuant to 28 CFR §20.30-38 and Minn. Stat. §299C.58, BCA may provide
Agency with access to the Federal Bureau of Investigation (FBI) National Crime Information Center.
6d.
SWIFT Contract # 108225
MN0273100
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2.4 Agency policies. Both the BCA and the FBI’s Criminal Justice Information Systems (FBI-CJIS) have policies,
regulations and laws on access, use, audit, dissemination, hit confirmation, logging, quality assurance, screening (pre-
employment), security, timeliness, training, use of the system, and validation. Agency has created its own policies to
ensure that Agency’s employees and contractors comply with all applicable requirements. Agency ensures this
compliance through appropriate enforcement. These BCA and FBI-CJIS policies and regulations, as amended and
updated from time to time, are incorporated into this Agreement by reference. The policies are available at
https://app.dps.mn.gov/cjdn.
2.5 Agency resources. To assist Agency in complying with the federal and state requirements on access to and use of
the various systems and tools, information is available at https://sps.x.state.mn.us/sites/bcaservicecatalog/default.aspx.
Additional information on appropriate use is found in the Minnesota Bureau of Criminal Apprehension Policy on
Appropriate Use of Systems and Data available at https://dps.mn.gov/divisions/bca/bca-
divisions/mnjis/Documents/BCA-Policy-on-Appropriate-Use-of-Systems-and-Data.pdf.
2.6 Access granted.
A. Agency is granted permission to use all current and future BCA systems and tools for which Agency is
eligible. Eligibility is dependent on Agency (i) satisfying all applicable federal or state statutory requirements; (ii)
complying with the terms of this Agreement; and (iii) acceptance by BCA of Agency’s written request for use of a
specific system or tool.
B. To facilitate changes in systems and tools, Agency grants its Authorized Representative authority to make
written requests for those systems and tools provided by BCA that the Agency needs to meet its criminal justice
obligations and for which Agency is eligible.
2.7 Future access. On written request by Agency, BCA also may provide Agency with access to those systems or
tools which may become available after the signing of this Agreement, to the extent that the access is authorized by
applicable state and federal law. Agency agrees to be bound by the terms and conditions contained in this Agreement
that when utilizing new systems or tools provided under this Agreement.
2.8 Limitations on access. BCA agrees that it will comply with applicable state and federal laws when making
information accessible. Agency agrees that it will comply with applicable state and federal laws when accessing,
entering, using, disseminating, and storing data. Each party is responsible for its own compliance with the most
current applicable state and federal laws.
2.9 Supersedes prior agreements. This Agreement supersedes any and all prior agreements between the BCA and
the Agency regarding access to and use of systems and tools provided by BCA.
2.10 Requirement to update information. The parties agree that if there is a change to any of the information
whether required by law or this Agreement, the party will send the new information to the other party in writing
within 30 days of the change. This clause does not apply to changes in systems or tools provided under this
Agreement.
This requirement to give notice additionally applies to changes in the individual or organization serving a city as its
prosecutor. Any change in performance of the prosecutorial function must be provided to the BCA in writing by
giving notice to the Service Desk, BCA.ServiceDesk@state.mn.us.
2.11 Transaction record. The BCA creates and maintains a transaction record for each exchange of data utilizing its
systems and tools. In order to meet FBI-CJIS requirements and to perform the audits described in Clause 7, there
must be a method of identifying which individual users at the Agency conducted a particular transaction.
If Agency uses either direct access as described in Clause 2.2A or indirect access as described in Clause 2.2B, BCA’s
transaction record meets FBI-CJIS requirements.
When Agency’s method of access is a computer to computer interface as described in Clause 2.2C, the Agency must
SWIFT Contract # 108225
MN0273100
3
keep a transaction record sufficient to satisfy FBI-CJIS requirements and permit the audits described in Clause 7 to
occur.
If an Agency accesses data from the Driver and Vehicle Services Division in the Minnesota Department of Public
Safety and keeps a copy of the data, Agency must have a transaction record of all subsequent access to the data that
are kept by the Agency. The transaction record must include the individual user who requested access, and the date,
time and content of the request. The transaction record must also include the date, time and content of the response
along with the destination to which the data were sent. The transaction record must be maintained for a minimum of
six (6) years from the date the transaction occurred and must be made available to the BCA within one (1) business
day of the BCA’s request.
2.12 Court information access. Certain BCA systems and tools that include access to and/or submission of Court
Records may only be utilized by the Agency if the Agency completes the Court Data Services Subscriber
Amendment, which upon execution will be incorporated into this Agreement by reference. These BCA systems and
tools are identified in the written request made by Agency under Clause 2.6 above. The Court Data Services
Subscriber Amendment provides important additional terms, including but not limited to privacy (see Clause 8.2,
below), fees (see Clause 3 below), and transaction records or logs, that govern Agency’s access to and/or submission
of the Court Records delivered through the BCA systems and tools.
2.13 Vendor personnel screening. The BCA will conduct all vendor personnel screening on behalf of Agency as is
required by the FBI CJIS Security Policy. The BCA will maintain records of the federal, fingerprint-based
background check on each vendor employee as well as records of the completion of the security awareness training
that may be relied on by the Agency.
3 Payment
The Agency agrees to pay BCA for access to the criminal justice data communications network described in Minn.
Stat. § 299C.46 as specified in this Agreement. The bills are sent annually for the amount of One Hundred Eighty
Dollars ($180.00).
Agency will identify its contact person for billing purposes, and will provide updated information to BCA’s
Authorized Representative within ten business days when this information changes.
If Agency chooses to execute the Court Data Services Subscriber Amendment referred to in Clause 2.12 in order to
access and/or submit Court Records via BCA’s systems, additional fees, if any, are addressed in that amendment.
4 Authorized Representatives
The BCA's Authorized Representative is Dana Gotz, Department of Public Safety, Bureau of Criminal Apprehension,
Minnesota Justice Information Services, 1430 Maryland Avenue, St. Paul, MN 55106, 651-793-1007, or her
successor.
The Agency's Authorized Representative is Matt Gottschalk, Director of Public Safety, 8200 County Road 116,
Corcoran, MN 55340, (763) 420-8966 , or his/her successor.
5 Assignment, Amendments, Waiver, and Contract Complete
5.1 Assignment. Neither party may assign nor transfer any rights or obligations under this Agreement.
5.2 Amendments. Any amendment to this Agreement, except those described in Clauses 2.6 and 2.7 above must be in
writing and will not be effective until it has been signed and approved by the same parties who signed and
approved the original agreement, their successors in office, or another individual duly authorized.
5.3 Waiver. If either party fails to enforce any provision of this Agreement, that failure does not waive the provision
or the right to enforce it.
5.4 Contract Complete. This Agreement contains all negotiations and agreements between the BCA and the Agency.
No other understanding regarding this Agreement, whether written or oral, may be used to bind either party.
SWIFT Contract # 108225
MN0273100
4
6 Liability
Each party will be responsible for its own acts and behavior and the results thereof and shall not be responsible or
liable for the other party’s actions and consequences of those actions. The Minnesota Torts Claims Act, Minn. Stat. §
3.736 and other applicable laws govern the BCA’s liability. The Minnesota Municipal Tort Claims Act, Minn. Stat.
Ch. 466, governs the Agency’s liability.
7 Audits
7.1 Under Minn. Stat. § 16C.05, subd. 5, the Agency’s books, records, documents, internal policies and accounting
procedures and practices relevant to this Agreement are subject to examination by the BCA, the State Auditor or
Legislative Auditor, as appropriate, for a minimum of six years from the end of this Agreement. Under Minn. Stat. §
6.551, the State Auditor may examine the books, records, documents, and accounting procedures and practices of
BCA. The examination shall be limited to the books, records, documents, and accounting procedures and practices
that are relevant to this Agreement.
7.2 Under applicable state and federal law, the Agency’s records are subject to examination by the BCA to ensure
compliance with laws, regulations and policies about access, use, and dissemination of data.
7.3 If Agency accesses federal databases, the Agency’s records are subject to examination by the FBI and Agency will
cooperate with FBI examiners and make any requested data available for review and audit.
7.4 To facilitate the audits required by state and federal law, Agency is required to have an inventory of the equipment
used to access the data covered by this Agreement and the physical location of each.
8 Government Data Practices
8.1 BCA and Agency. The Agency and BCA must comply with the Minnesota Government Data Practices Act,
Minn. Stat. Ch. 13, as it applies to all data accessible under this Agreement, and as it applies to all data created,
collected, received, stored, used, maintained, or disseminated by the Agency under this Agreement. The remedies of
Minn. Stat. §§ 13.08 and 13.09 apply to the release of the data referred to in this clause by either the Agency or the
BCA.
8.2 Court Records. If Agency chooses to execute the Court Data Services Subscriber Amendment referred to in
Clause 2.12 in order to access and/or submit Court Records via BCA’s systems, the following provisions regarding
data practices also apply. The Court is not subject to Minn. Stat. Ch. 13 (see section 13.90) but is subject to the Rules
of Public Access to Records of the Judicial Branch promulgated by the Minnesota Supreme Court. All parties
acknowledge and agree that Minn. Stat. § 13.03, subdivision 4(e) requires that the BCA and the Agency comply with
the Rules of Public Access for those data received from Court under the Court Data Services Subscriber Amendment.
All parties also acknowledge and agree that the use of, access to or submission of Court Records, as that term is
defined in the Court Data Services Subscriber Amendment, may be restricted by rules promulgated by the Minnesota
Supreme Court, applicable state statute or federal law. All parties acknowledge and agree that these applicable
restrictions must be followed in the appropriate circumstances.
9 Investigation of alleged violations; sanctions
For purposes of this clause, “Individual User” means an employee or contractor of Agency.
9.1 Investigation. Agency and BCA agree to cooperate in the investigation and possible prosecution of suspected
violations of federal and state law referenced in this Agreement. Agency and BCA agree to cooperate in the
investigation of suspected violations of the policies and procedures referenced in this Agreement. When BCA
becomes aware that a violation may have occurred, BCA will inform Agency of the suspected violation, subject to
any restrictions in applicable law. When Agency becomes aware that a violation has occurred, Agency will inform
BCA subject to any restrictions in applicable law.
9.2 Sanctions Involving Only BCA Systems and Tools.
The following provisions apply to BCA systems and tools not covered by the Court Data Services Subscriber
SWIFT Contract # 108225
MN0273100
5
Amendment. None of these provisions alter the Agency’s internal discipline processes, including those governed by a
collective bargaining agreement.
9.2.1 For BCA systems and tools that are not covered by the Court Data Services Subscriber Amendment, Agency
must determine if and when an involved Individual User’s access to systems or tools is to be temporarily or
permanently eliminated. The decision to suspend or terminate access may be made as soon as alleged violation is
discovered, after notice of an alleged violation is received, or after an investigation has occurred. Agency must report
the status of the Individual User’s access to BCA without delay. BCA reserves the right to make a different
determination concerning an Individual User’s access to systems or tools than that made by Agency and BCA’s
determination controls.
9.2.2 If BCA determines that Agency has jeopardized the integrity of the systems or tools covered in this Clause 9.2,
BCA may temporarily stop providing some or all the systems or tools under this Agreement until the failure is
remedied to the BCA’s satisfaction. If Agency’s failure is continuing or repeated, Clause 11.1 does not apply and
BCA may terminate this Agreement immediately.
9.3 Sanctions Involving Only Court Data Services
The following provisions apply to those systems and tools covered by the Court Data Services Subscriber
Amendment, if it has been signed by Agency. As part of the agreement between the Court and the BCA for the
delivery of the systems and tools that are covered by the Court Data Services Subscriber Amendment, BCA is
required to suspend or terminate access to or use of the systems and tools either on its own initiative or when directed
by the Court. The decision to suspend or terminate access may be made as soon as an alleged violation is discovered,
after notice of an alleged violation is received, or after an investigation has occurred. The decision to suspend or
terminate may also be made based on a request from the Authorized Representative of Agency. The agreement
further provides that only the Court has the authority to reinstate access and use.
9.3.1 Agency understands that if it has signed the Court Data Services Subscriber Amendment and if Agency’s
Individual Users violate the provisions of that Amendment, access and use will be suspended by BCA or Court.
Agency also understands that reinstatement is only at the direction of the Court.
9.3.2 Agency further agrees that if Agency believes that one or more of its Individual Users have violated the terms of
the Amendment, it will notify BCA and Court so that an investigation as described in Clause 9.1 may occur.
10 Venue
Venue for all legal proceedings involving this Agreement, or its breach, must be in the appropriate state or federal
court with competent jurisdiction in Ramsey County, Minnesota.
11 Termination
11.1 Termination. The BCA or the Agency may terminate this Agreement at any time, with or without cause, upon 30
days’ written notice to the other party’s Authorized Representative.
11.2 Termination for Insufficient Funding. Either party may immediately terminate this Agreement if it does not
obtain funding from the Minnesota Legislature, or other funding source; or if funding cannot be continued at a level
sufficient to allow for the payment of the services covered here. Termination must be by written notice to the other
party’s authorized representative. The Agency is not obligated to pay for any services that are provided after notice
and effective date of termination. However, the BCA will be entitled to payment, determined on a pro rata basis, for
services satisfactorily performed to the extent that funds are available. Neither party will be assessed any penalty if
the agreement is terminated because of the decision of the Minnesota Legislature, or other funding source, not to
appropriate funds. Notice of the lack of funding must be provided within a reasonable time of the affected party
receiving that notice.
12 Continuing obligations
The following clauses survive the expiration or cancellation of this Agreement: 6. Liability; 7. Audits; 8. Government
Data Practices; 9. Investigation of alleged violations; sanctions; and 10.Venue.
SWIFT Contract # 108225
MN0273100
6
The parties indicate their agreement and authority to execute this Agreement by signing below.
1. AGENCY
Name: _____________________________________________
(PRINTED)
Signed: ____________________________________________
Title: ______________________________________________
(with delegated authority)
Date: ______________________________________________
Name: _____________________________________________
(PRINTED)
Signed: ____________________________________________
Title: ______________________________________________
(with delegated authority)
Date: ______________________________________________
2. DEPARTMENT OF PUBLIC SAFETY, BUREAU OF
CRIMINAL APPREHENSION
Name: _____________________________________________
(PRINTED)
Signed: ____________________________________________
Title: ______________________________________________
(with delegated authority)
Date: ______________________________________________
3. COMMISSIONER OF ADMINISTRATION
delegated to Materials Management Division
By: ______________________________________________
Date: _____________________________________________
1
COURT DATA SERVICES SUBSCRIBER AMENDMENT TO
CJDN SUBSCRIBER AGREEMENT
This Court Data Services Subscriber Amendment (“Subscriber Amendment”) is entered into by
the State of Minnesota, acting through its Department of Public Safety, Bureau of Criminal
Apprehension, (“BCA”) and the City of Corcoran on behalf of its Police Department (“Agency”),
and by and for the benefit of the State of Minnesota acting through its State Court Administrator’s
Office (“Court”) who shall be entitled to enforce any provisions hereof through any legal action
against any party.
Recitals
This Subscriber Amendment modifies and supplements the Agreement between the BCA and
Agency, SWIFT Contract number 108225, of even or prior date, for Agency use of BCA systems
and tools (referred to herein as “the CJDN Subscriber Agreement”). Certain BCA systems and
tools that include access to and/or submission of Court Records may only be utilized by the Agency
if the Agency completes this Subscriber Amendment. The Agency desires to use one or more BCA
systems and tools to access and/or submit Court Records to assist the Agency in the efficient
performance of its duties as required or authorized by law or court rule. Court desires to permit
such access and/or submission. This Subscriber Amendment is intended to add Court as a party to
the CJDN Subscriber Agreement and to create obligations by the Agency to the Court that can be
enforced by the Court. It is also understood that, pursuant to the Master Joint Powers Agreement for
Delivery of Court Data Services to CJDN Subscribers (“Master Authorization Agreement”)
between the Court and the BCA, the BCA is authorized to sign this Subscriber Amendment on
behalf of Court. Upon execution the Subscriber Amendment will be incorporated into the CJDN
Subscriber Agreement by reference. The BCA, the Agency and the Court desire to amend the
CJDN Subscriber Agreement as stated below.
The CJDN Subscriber Agreement is amended by the addition of the following provisions:
1.TERM; TERMINATION; ONGOING OBLIGATIONS. This Subscriber
Amendment shall be effective on the date finally executed by all parties and shall remain in effect
until expiration or termination of the CJDN Subscriber Agreement unless terminated earlier as
provided in this Subscriber Amendment. Any party may terminate this Subscriber Amendment
with or without cause by giving written notice to all other parties. The effective date of the
termination shall be thirty days after the other party's receipt of the notice of termination, unless a
later date is specified in the notice. The provisions of sections 5 through 9, 12.b., 12.c., and 15
through 24 shall survive any termination of this Subscriber Amendment as shall any other
provisions which by their nature are intended or expected to survive such termination. Upon
termination, the Subscriber shall perform the responsibilities set forth in paragraph 7(f) hereof.
2.Definitions. Unless otherwise specifically defined, each term used herein shall
have the meaning assigned to such term in the CJDN Subscriber Agreement.
6d.
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a. “Authorized Court Data Services” means Court Data Services that have
been authorized for delivery to CJDN Subscribers via BCA systems and tools pursuant to an
Authorization Amendment to the Joint Powers Agreement for Delivery of Court Data
Services to CJDN Subscribers (“Master Authorization Agreement”) between the Court and
the BCA.
b. “Court Data Services” means one or more of the services set forth on the
Justice Agency Resource webpage of the Minnesota Judicial Branch website (for which the
current address is www.courts.state.mn.us) or other location designated by the Court, as the
same may be amended from time to time by the Court.
c. “Court Records” means all information in any form made available by the
Court to Subscriber through the BCA for the purposes of carrying out this Subscriber
Amendment, including:
i. “Court Case Information” means any information in the Court
Records that conveys information about a particular case or controversy,
including without limitation Court Confidential Case Information, as
defined herein.
ii. “Court Confidential Case Information” means any information in the
Court Records that is inaccessible to the public pursuant to the Rules of
Public Access and that conveys information about a particular case or
controversy.
iii. “Court Confidential Security and Activation Information” means
any information in the Court Records that is inaccessible to the public
pursuant to the Rules of Public Access and that explains how to use or
gain access to Court Data Services, including but not limited to login
account names, passwords, TCP/IP addresses, Court Data Services user
manuals, Court Data Services Programs, Court Data Services
Databases, and other technical information.
iv. “Court Confidential Information” means any information in the Court
Records that is inaccessible to the public pursuant to the Rules of Public
Access, including without limitation both i) Court Confidential Case
Information; and ii) Court Confidential Security and Activation
Information.
d. “DCA” shall mean the district courts of the state of Minnesota and their
respective staff.
e. “Policies & Notices” means the policies and notices published by the Court
in connection with each of its Court Data Services, on a website or other location
designated by the Court, as the same may be amended from time to time by the Court.
Policies & Notices for each Authorized Court Data Service identified in an approved
request form under section 3, below, are hereby made part of this Subscriber Amendment
by this reference and provide additional terms and conditions that govern Subscriber’s use
of Court Records accessed through such services, including but not limited to provisions
on access and use limitations.
3
f. “Rules of Public Access” means the Rules of Public Access to Records of
the Judicial Branch promulgated by the Minnesota Supreme Court, as the same may be
amended from time to time, including without limitation lists or tables published from time
to time by the Court entitled Limits on Public Access to Case Records or Limits on Public
Access to Administrative Records, all of which by this reference are made a part of this
Subscriber Amendment. It is the obligation of Subscriber to check from time to time for
updated rules, lists, and tables and be familiar with the contents thereof. It is
contemplated that such rules, lists, and tables will be posted on the Minnesota Judicial
Branch website, for which the current address is www.courts.state.mn.us.
g. “Court” shall mean the State of Minnesota, State Court Administrator's
Office.
h. “Subscriber” shall mean the Agency.
i. “Subscriber Records” means any information in any form made available
by the Subscriber to the Court for the purposes of carrying out this Subscriber
Amendment.
3. REQUESTS FOR AUTHORIZED COURT DATA SERVICES. Following
execution of this Subscriber Amendment by all parties, Subscriber may submit to the BCA one or
more separate requests for Authorized Court Data Services. The BCA is authorized in the Master
Authorization Agreement to process, credential and approve such requests on behalf of Court and
all such requests approved by the BCA are adopted and incorporated herein by this reference the
same as if set forth verbatim herein.
a. Activation. Activation of the requested Authorized Court Data Service(s)
shall occur promptly following approval.
b. Rejection. Requests may be rejected for any reason, at the discretion of the
BCA and/or the Court.
c. Requests for Termination of One or More Authorized Court Data
Services. The Subscriber may request the termination of an Authorized Court Data
Services previously requested by submitting a notice to Court with a copy to the BCA.
Promptly upon receipt of a request for termination of an Authorized Court Data Service,
the BCA will deactivate the service requested. The termination of one or more Authorized
Court Data Services does not terminate this Subscriber Amendment. Provisions for
termination of this Subscriber Amendment are set forth in section 1. Upon termination of
Authorized Court Data Services, the Subscriber shall perform the responsibilities set forth
in paragraph 7(f) hereof.
4. SCOPE OF ACCESS TO COURT RECORDS LIMITED. Subscriber’s access
to and/or submission of the Court Records shall be limited to Authorized Court Data Services
identified in an approved request form under section 3, above, and other Court Records necessary
for Subscriber to use Authorized Court Data Services. Authorized Court Data Services shall only
be used according to the instructions provided in corresponding Policies & Notices or other
4
materials and only as necessary to assist Subscriber in the efficient performance of Subscriber’s
duties required or authorized by law or court rule in connection with any civil, criminal,
administrative, or arbitral proceeding in any Federal, State, or local court or agency or before any
self-regulatory body. Subscriber’s access to the Court Records for personal or non-official use is
prohibited. Subscriber will not use or attempt to use Authorized Court Data Services in any
manner not set forth in this Subscriber Amendment, Policies & Notices, or other Authorized
Court Data Services documentation, and upon any such unauthorized use or attempted use the
Court may immediately terminate this Subscriber Amendment without prior notice to Subscriber.
5. GUARANTEES OF CONFIDENTIALITY. Subscriber agrees:
a. To not disclose Court Confidential Information to any third party except
where necessary to carry out the Subscriber’s duties as required or authorized by law or
court rule in connection with any civil, criminal, administrative, or arbitral proceeding in
any Federal, State, or local court or agency or before any self-regulatory body.
b. To take all appropriate action, whether by instruction, agreement, or
otherwise, to insure the protection, confidentiality and security of Court Confidential
Information and to satisfy Subscriber’s obligations under this Subscriber Amendment.
c. To limit the use of and access to Court Confidential Information to
Subscriber’s bona fide personnel whose use or access is necessary to effect the purposes of
this Subscriber Amendment, and to advise each individual who is permitted use of and/or
access to any Court Confidential Information of the restrictions upon disclosure and use
contained in this Subscriber Amendment, requiring each individual who is permitted use of
and/or access to Court Confidential Information to acknowledge in writing that the
individual has read and understands such restrictions. Subscriber shall keep such
acknowledgements on file for one year following termination of the Subscriber
Amendment and/or CJDN Subscriber Agreement, whichever is longer, and shall provide
the Court with access to, and copies of, such acknowledgements upon request. For
purposes of this Subscriber Amendment, Subscriber’s bona fide personnel shall mean
individuals who are employees of Subscriber or provide services to Subscriber either on a
voluntary basis or as independent contractors with Subscriber.
d. That, without limiting section 1 of this Subscriber Amendment, the
obligations of Subscriber and its bona fide personnel with respect to the confidentiality and
security of Court Confidential Information shall survive the termination of this Subscriber
Amendment and the CJDN Subscriber Agreement and the termination of their relationship
with Subscriber.
e. That, notwithstanding any federal or state law applicable to the
nondisclosure obligations of Subscriber and Subscriber’s bona fide personnel under this
Subscriber Amendment, such obligations of Subscriber and Subscriber's bona fide
personnel are founded independently on the provisions of this Subscriber Amendment.
6. APPLICABILITY TO PREVIOUSLY DISCLOSED COURT RECORDS.
Subscriber acknowledges and agrees that all Authorized Court Data Services and related Court
Records disclosed to Subscriber prior to the effective date of this Subscriber Amendment shall be
subject to the provisions of this Subscriber Amendment.
5
7. LICENSE AND PROTECTION OF PROPRIETARY RIGHTS. During the
term of this Subscriber Amendment, subject to the terms and conditions hereof, the Court hereby
grants to Subscriber a nonexclusive, nontransferable, limited license to use Court Data Services
Programs and Court Data Services Databases to access or receive the Authorized Court Data
Services identified in an approved request form under section 3, above, and related Court
Records. Court reserves the right to make modifications to the Authorized Court Data Services,
Court Data Services Programs, and Court Data Services Databases, and related materials without
notice to Subscriber. These modifications shall be treated in all respects as their previous
counterparts.
a. Court Data Services Programs. Court is the copyright owner and licensor
of the Court Data Services Programs. The combination of ideas, procedures, processes,
systems, logic, coherence and methods of operation embodied within the Court Data
Services Programs, and all information contained in documentation pertaining to the Court
Data Services Programs, including but not limited to manuals, user documentation, and
passwords, are trade secret information of Court and its licensors.
b. Court Data Services Databases. Court is the copyright owner and licensor
of the Court Data Services Databases and of all copyrightable aspects and components
thereof. All specifications and information pertaining to the Court Data Services
Databases and their structure, sequence and organization, including without limitation data
schemas such as the Court XML Schema, are trade secret information of Court and its
licensors.
c. Marks. Subscriber shall neither have nor claim any right, title, or interest
in or use of any trademark used in connection with Authorized Court Data Services,
including but not limited to the marks “MNCIS” and “Odyssey.”
d. Restrictions on Duplication, Disclosure, and Use. Trade secret
information of Court and its licensors will be treated by Subscriber in the same manner as
Court Confidential Information. In addition, Subscriber will not copy any part of the
Court Data Services Programs or Court Data Services Databases, or reverse engineer or
otherwise attempt to discern the source code of the Court Data Services Programs or
Court Data Services Databases, or use any trademark of Court or its licensors, in any way
or for any purpose not specifically and expressly authorized by this Subscriber
Amendment. As used herein, "trade secret information of Court and its licensors" means
any information possessed by Court which derives independent economic value from not
being generally known to, and not being readily ascertainable by proper means by, other
persons who can obtain economic value from its disclosure or use. "Trade secret
information of Court and its licensors" does not, however, include information which was
known to Subscriber prior to Subscriber’s receipt thereof, either directly or indirectly,
from Court or its licensors, information which is independently developed by Subscriber
without reference to or use of information received from Court or its licensors, or
information which would not qualify as a trade secret under Minnesota law. It will not be
a violation of this section 7, sub-section d, for Subscriber to make up to one copy of
training materials and configuration documentation, if any, for each individual authorized
to access, use, or configure Authorized Court Data Services, solely for its own use in
connection with this Subscriber Amendment. Subscriber will take all steps reasonably
necessary to protect the copyright, trade secret, and trademark rights of Court and its
licensors and Subscriber will advise its bona fide personnel who are permitted access to
6
any of the Court Data Services Programs and Court Data Services Databases, and trade
secret information of Court and its licensors, of the restrictions upon duplication,
disclosure and use contained in this Subscriber Amendment.
e. Proprietary Notices. Subscriber will not remove any copyright or
proprietary notices included in and/or on the Court Data Services Programs or Court Data
Services Databases, related documentation, or trade secret information of Court and its
licensors, or any part thereof, made available by Court directly or through the BCA, if
any, and Subscriber will include in and/or on any copy of the Court Data Services
Programs or Court Data Services Databases, or trade secret information of Court and its
licensors and any documents pertaining thereto, the same copyright and other proprietary
notices as appear on the copies made available to Subscriber by Court directly or through
the BCA, except that copyright notices shall be updated and other proprietary notices
added as may be appropriate.
f. Title; Return. The Court Data Services Programs and Court Data Services
Databases, and related documentation, including but not limited to training and
configuration material, if any, and logon account information and passwords, if any, made
available by the Court to Subscriber directly or through the BCA and all copies, including
partial copies, thereof are and remain the property of the respective licensor. Except as
expressly provided in section 12.b., within ten days of the effective date of termination of
this Subscriber Amendment or the CJDN Subscriber Agreement or within ten days of a
request for termination of Authorized Court Data Service as described in section 4,
Subscriber shall either: (i) uninstall and return any and all copies of the applicable Court
Data Services Programs and Court Data Services Databases, and related documentation,
including but not limited to training and configuration materials, if any, and logon account
information, if any; or (2) destroy the same and certify in writing to the Court that the
same have been destroyed.
8. INJUNCTIVE RELIEF. Subscriber acknowledges that the Court, Court’s
licensors, and DCA will be irreparably harmed if Subscriber’s obligations under this Subscriber
Amendment are not specifically enforced and that the Court, Court’s licensors, and DCA would
not have an adequate remedy at law in the event of an actual or threatened violation by Subscriber
of its obligations. Therefore, Subscriber agrees that the Court, Court’s licensors, and DCA shall
be entitled to an injunction or any appropriate decree of specific performance for any actual or
threatened violations or breaches by Subscriber or its bona fide personnel without the necessity of
the Court, Court’s licensors, or DCA showing actual damages or that monetary damages would
not afford an adequate remedy. Unless Subscriber is an office, officer, agency, department,
division, or bureau of the state of Minnesota, Subscriber shall be liable to the Court, Court’s
licensors, and DCA for reasonable attorneys fees incurred by the Court, Court’s licensors, and
DCA in obtaining any relief pursuant to this Subscriber Amendment.
9. LIABILITY. Subscriber and the Court agree that, except as otherwise expressly
provided herein, each party will be responsible for its own acts and the results thereof to the
extent authorized by law and shall not be responsible for the acts of any others and the results
thereof. Liability shall be governed by applicable law. Without limiting the foregoing, liability
of the Court and any Subscriber that is an office, officer, agency, department, division, or bureau
of the state of Minnesota shall be governed by the provisions of the Minnesota Tort Claims Act,
Minnesota Statutes, section 3.376, and other applicable law. Without limiting the foregoing, if
Subscriber is a political subdivision of the state of Minnesota, liability of the Subscriber shall be
7
governed by the provisions of Minn. Stat. Ch. 466 (Tort Liability, Political Subdivisions) or other
applicable law. Subscriber and Court further acknowledge that the liability, if any, of the BCA is
governed by a separate agreement between the Court and the BCA dated December 13, 2010 with
DPS-M -0958.
10. AVAILABILITY. Specific terms of availability shall be established by the Court
and communicated to Subscriber by the Court and/or the BCA. The Court reserves the right to
terminate this Subscriber Amendment immediately and/or temporarily suspend Subscriber’s
Authorized Court Data Services in the event the capacity of any host computer system or
legislative appropriation of funds is determined solely by the Court to be insufficient to meet the
computer needs of the courts served by the host computer system.
11. [reserved]
12. ADDITIONAL USER OBLIGATIONS. The obligations of the Subscriber set
forth in this section are in addition to the other obligations of the Subscriber set forth elsewhere in
this Subscriber Amendment.
a. Judicial Policy Statement. Subscriber agrees to comply with all policies
identified in Policies & Notices applicable to Court Records accessed by Subscriber using
Authorized Court Data Services. Upon failure of the Subscriber to comply with such
policies, the Court shall have the option of immediately suspending the Subscriber’s
Authorized Court Data Services on a temporary basis and/or immediately terminating this
Subscriber Amendment.
b. Access and Use; Log. Subscriber shall be responsible for all access to and
use of Authorized Court Data Services and Court Records by Subscriber’s bona fide
personnel or by means of Subscriber’s equipment or passwords, whether or not Subscriber
has knowledge of or authorizes such access and use. Subscriber shall also maintain a log
identifying all persons to whom Subscriber has disclosed its Court Confidential Security
and Activation Information, such as user ID(s) and password(s), including the date of such
disclosure. Subscriber shall maintain such logs for a minimum period of six years from
the date of disclosure, and shall provide the Court with access to, and copies of, such logs
upon request. The Court may conduct audits of Subscriber’s logs and use of Authorized
Court Data Services and Court Records from time to time. Upon Subscriber’s failure to
maintain such logs, to maintain accurate logs, or to promptly provide access by the Court
to such logs, the Court may terminate this Subscriber Amendment without prior notice to
Subscriber.
c. Personnel. Subscriber agrees to investigate, at the request of the Court
and/or the BCA, allegations of misconduct pertaining to Subscriber’s bona fide personnel
having access to or use of Authorized Court Data Services, Court Confidential
Information, or trade secret information of the Court and its licensors where such persons
are alleged to have violated the provisions of this Subscriber Amendment, Policies &
Notices, Judicial Branch policies, or other security requirements or laws regulating access
to the Court Records.
d. Minnesota Data Practices Act Applicability. If Subscriber is a Minnesota
Government entity that is subject to the Minnesota Government Data Practices Act, Minn.
8
Stat. Ch. 13, Subscriber acknowledges and agrees that: (1) the Court is not subject to Minn.
Stat. Ch. 13 (see section 13.90) but is subject to the Rules of Public Access and other rules
promulgated by the Minnesota Supreme Court; (2) Minn. Stat. section 13.03, subdivision
4(e) requires that Subscriber comply with the Rules of Public Access and other rules
promulgated by the Minnesota Supreme Court for access to Court Records provided via the
BCA systems and tools under this Subscriber Amendment; (3) the use of and access to Court
Records may be restricted by rules promulgated by the Minnesota Supreme Court,
applicable state statute or federal law; and (4) these applicable restrictions must be followed
in the appropriate circumstances.
13. FEES; INVOICES. Unless the Subscriber is an office, officer, department,
division, agency, or bureau of the state of Minnesota, Subscriber shall pay the fees, if any, set
forth in applicable Policies & Notices, together with applicable sales, use or other taxes.
Applicable monthly fees commence ten (10) days after notice of approval of the request pursuant
to section 3 of this Subscriber Amendment or upon the initial Subscriber transaction as defined in
the Policies & Notices, whichever occurs earlier. When fees apply, the Court shall invoice
Subscriber on a monthly basis for charges incurred in the preceding month and applicable taxes, if
any, and payment of all amounts shall be due upon receipt of invoice. If all amounts are not paid
within 30 days of the date of the invoice, the Court may immediately cancel this Subscriber
Amendment without notice to Subscriber and pursue all available legal remedies. Subscriber
certifies that funds have been appropriated for the payment of charges under this Subscriber
Amendment for the current fiscal year, if applicable.
14. MODIFICATION OF FEES. Court may modify the fees by amending the
Policies & Notices as provided herein, and the modified fees shall be effective on the date
specified in the Policies & Notices, which shall not be less than thirty days from the publication of
the Policies & Notices. Subscriber shall have the option of accepting such changes or terminating
this Subscriber Amendment as provided in section 1 hereof.
15. WARRANTY DISCLAIMERS.
a. WARRANTY EXCLUSIONS. EXCEPT AS SPECIFICALLY AND
EXPRESSLY PROVIDED HEREIN, COURT, COURT’S LICENSORS, AND DCA
MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, INCLUDING
BUT NOT LIMITED TO THE WARRANTIES OF FITNESS FOR A PARTICULAR
PURPOSE OR MERCHANTABILITY, NOR ARE ANY WARRANTIES TO BE
IMPLIED, WITH RESPECT TO THE INFORMATION, SERVICES OR COMPUTER
PROGRAMS MADE AVAILABLE UNDER THIS AGREEMENT.
b. ACCURACY AND COMPLETENESS OF INFORMATION.
WITHOUT LIMITING THE GENERALITY OF THE PRECEDING PARAGRAPH,
COURT, COURT’S LICENSORS, AND DCA MAKE NO WARRANTIES AS TO THE
ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED IN THE
COURT RECORDS.
16. RELATIONSHIP OF THE PARTIES. Subscriber is an independent contractor
and shall not be deemed for any purpose to be an employee, partner, agent or franchisee of the
Court, Court’s licensors, or DCA. Neither Subscriber nor the Court, Court’s licensors, or DCA
9
shall have the right nor the authority to assume, create or incur any liability or obligation of any
kind, express or implied, against or in the name of or on behalf of the other.
17. NOTICE. Except as provided in section 2 regarding notices of or modifications to
Authorized Court Data Services and Policies & Notices, any notice to Court or Subscriber
hereunder shall be deemed to have been received when personally delivered in writing or seventy-
two (72) hours after it has been deposited in the United States mail, first class, proper postage
prepaid, addressed to the party to whom it is intended at the address set forth on page one of this
Agreement or at such other address of which notice has been given in accordance herewith.
18. NON-WAIVER. The failure by any party at any time to enforce any of the
provisions of this Subscriber Amendment or any right or remedy available hereunder or at law or
in equity, or to exercise any option herein provided, shall not constitute a waiver of such
provision, remedy or option or in any way affect the validity of this Subscriber Amendment. The
waiver of any default by either Party shall not be deemed a continuing waiver, but shall apply
solely to the instance to which such waiver is directed.
19. FORCE MAJEURE. Neither Subscriber nor Court shall be responsible for
failure or delay in the performance of their respective obligations hereunder caused by acts
beyond their reasonable control.
20. SEVERABILITY. Every provision of this Subscriber Amendment shall be
construed, to the extent possible, so as to be valid and enforceable. If any provision of this
Subscriber Amendment so construed is held by a court of competent jurisdiction to be invalid,
illegal or otherwise unenforceable, such provision shall be deemed severed from this Subscriber
Amendment, and all other provisions shall remain in full force and effect.
21. ASSIGNMENT AND BINDING EFFECT. Except as otherwise expressly
permitted herein, neither Subscriber nor Court may assign, delegate and/or otherwise transfer this
Subscriber Amendment or any of its rights or obligations hereunder without the prior written
consent of the other. This Subscriber Amendment shall be binding upon and inure to the benefit
of the Parties hereto and their respective successors and assigns, including any other legal entity
into, by or with which Subscriber may be merged, acquired or consolidated.
22. GOVERNING LAW. This Subscriber Amendment shall in all respects be
governed by and interpreted, construed and enforced in accordance with the laws of the United
States and of the State of Minnesota.
23. VENUE AND JURISDICTION. Any action arising out of or relating to this
Subscriber Amendment, its performance, enforcement or breach will be venued in a state or
federal court situated within the State of Minnesota. Subscriber hereby irrevocably consents and
submits itself to the personal jurisdiction of said courts for that purpose.
24. INTEGRATION. This Subscriber Amendment contains all negotiations and
agreements between the parties. No other understanding regarding this Subscriber Amendment,
whether written or oral, may be used to bind either party, provided that all terms and conditions of
the CJDN Subscriber Agreement and all previous amendments remain in full force and effect
except as supplemented or modified by this Subscriber Amendment.
10
IN WITNESS WHEREOF, the Parties have, by their duly authorized officers, executed
this Subscriber Amendment in duplicate, intending to be bound thereby.
1. SUBSCRIBER (AGENCY)
Subscriber must attach written verification of
authority to sign on behalf of and bind the entity,
such as an opinion of counsel or resolution.
Name: _______________________________________
(PRINTED)
Signed: _______________________________________
Title: ________________________________________
(with delegated authority)
Date: ________________________________________
Name: _______________________________________
(PRINTED)
Signed: _______________________________________
Title: ________________________________________
(with delegated authority)
Date: ________________________________________
2. DEPARTMENT OF PUBLIC SAFETY,
BUREAU OF CRIMINAL APPREHENSION
Name: ____________________________________________
(PRINTED)
Signed: ___________________________________________
Title: _____________________________________________
(with delegated authority)
Date: _____________________________________________
3. COMMISSIONER OF ADMINISTRATION
delegated to Materials Management Division
By: ______________________________________________
Date: _____________________________________________
4. COURTS
Authority granted to Bureau of Criminal Apprehension
Name: ____________________________________________
(PRINTED)
Signed: ___________________________________________
Title: _____________________________________________
(with authorized authority)
Date: _____________________________________________
City of Corcoran May 12, 2016
County of Hennepin
State of Minnesota
RESOLUTION NO. 2016-38
Page 1 of 1
Motion By:
Seconded By:
A RESOLUTION RECOGNIZING THE CORCORAN POLICE FIREARMS SAFETY PROGRAM
WHEREAS, the City Council of the City of Corcoran, Minnesota, does hereby find as follows:
WHEREAS, the City of Corcoran supports the efforts of the 35th Annual Corcoran Police Firearms
Safety Program; and
WHEREAS, the 2016 training team consisted of Lieutenant Ryan Burns, Officers Steve Warren,
Duane Hochstetler, Jesse Olson, Police Clerk Paula Steelman and members of the Corcoran Police
Reserves, Public Works Supervisor Pat Meister and Public Works Staff, Minnesota DNR Conservation
Officer Leah Weyandt, Community Volunteers Brent Anderson, Paul Schutte, Donald Finnvik, Dean
Hochstetler, Mark Bauer, Dave Kramer, Val Nybo, Mike Nybo, Justin White, George Gmach, Lee Pauman,
Dustin Hochstetler, Amy Anderson, Carrie White, Josh Steelman, Cody Steelman, Adam Noreen, Kelsey
Finnvik; and
WHEREAS, the following donors have made a contribution to the City of Corcoran to be utilized in
support of the Corcoran Firearms Safety program;
Corcoran Lions $ 750
Northwest Area Jaycees $ 1,000
Maple Grove Lions $ 1,000
Hanover Athletic Association $ 1,000
Farmers State Bank of Hamel $ 525
NOW THEREFORE BE IT RESOLVED, the City Council of the City of Corcoran acknowledges the
outstanding efforts by the Fire Arms Safety Committee, and the generosity of all donors and graciously
accepts the financial donations as listed above.
VOTING AYE VOTING NAY
Guenthner, Ken Guenthner, Ken
Hank, Pat Hank, Pat
Keefe, Mike Keefe, Mike
LaFave, Tonya LaFave, Tonya
Thomas, Ron Thomas, Ron
Whereupon, said Resolution is hereby declared adopted on this 12th day of May 2016.
________________________________
Ken Guenthner - Mayor
City Seal
ATTEST:
____________________________________
Jessica Beise – City Clerk/Administrative Services Coordinator
6e.
STAFF REPORT Agenda Item 8a.
Council Meeting:
May 12, 2016
Prepared By:
Brad Martens
Topic:
Solar Ordinance Workshop
Action Required:
None
Summary:
At the April 28th City Council meeting, staff was directed to survey Councilmembers
availability to schedule a workshop to discuss a solar ordinance. After surveying
members, the date of Wednesday, May 25th is preferred from 6:00 pm - 8:00 pm. Staff
has scheduled the meeting and is working on coordinating presenters. The meeting is
open to the public.
Financial/Budget:
Costs related to creating a solar ordinance are being paid from an escrow account
related to a proposed project.
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:
N/A
Recommendation:
N/A
Council Action:
N/A
Attachments:
N/A
City of Corcoran
Corcoran, Minnesota
For the Year Ended
December 31, 2015
Annual Financial Report
Agenda Item 11a.
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CITY OF CORCORAN
CORCORAN, MINNESOTA
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2015
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CITY OF CORCORAN, MINNESOTA
ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
Page No.
INTRODUCTORY SECTION
Elected and Appointed Officials 7
FINANCIAL SECTION
Independent Auditor’s Report 11
Management’s Discussion and Analysis 15
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 27
Statement of Activities 28
Fund Financial Statements
Governmental Funds
Balance Sheet 32
Reconciliation of the Balance Sheet to the Statement of Net Position 35
Statement of Revenues, Expenditures and Changes in Fund Balances 36
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances to the Statement of Activities 38
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 39
Proprietary Funds
Statement of Net Position 40
Statement of Revenues, Expenditures and Changes in Net Position 41
Statement of Cash Flows 42
Fiduciary Funds
Statement of Fiduciary Net Position 43
Notes to the Financial Statements 45
Required Supplementary Information
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
General Employees Retirement Fund 70
Schedule of Employer’s Public Employees Retirement Association Contributions -
General Employees Retirement Fund 70
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
Public Employees Police and Fire Fund 70
Schedule of Employer’s Public Employees Retirement Association Contributions -
Public Employees Police and Fire Fund 71
Schedule of Funding Progress for the Postemployment Benefit Plan 71
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 74
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 75
Nonmajor Special Revenue Funds
Combining Balance Sheet 76
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 78
Nonmajor Capital Projects Funds
Combining Balance Sheet 80
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 82
General Fund
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 84
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CITY OF CORCORAN, MINNESOTA
ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2015
Page No.
Nonmajor Debt Service Funds
Combining Balance Sheet 88
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 89
Fiduciary Funds
Combining Schedule of Net Position 90
Summary Financial Report
Revenues and Expenditures for General Operations 92
OTHER REPORT
Independent Auditor’s Report on Minnesota Legal Compliance 95
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INTRODUCTORY SECTION
CITY OF CORCORAN
CORCORAN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
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INTENTIONALLY
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CITY OF CORCORAN, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
FOR THE YEAR ENDED DECEMBER 31, 2015
Name Term Expires Title
Ken Guenthner 12/31/16 Mayor
Pat Hank 12/31/16 Council Member
Mike Keefe 12/31/18 Council Member
Tonya LaFave 12/31/18 Council Member
Ron Thomas 12/31/16 Council Member
Brad Martens City Administrator
Jessica Beise City Clerk/Administrative Services Coordinator
Jeanie Heinecke Deputy Clerk
ELECTED
APPOINTED
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FINANCIAL SECTION
CITY OF CORCORAN
CORCORAN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
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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, 2015, 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, 2015, 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.
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Other Matters
Change in Accounting Standards
As described in Note 7 to the financial statements, the City adopted the provisions of Governmental Accounting Standard Board
(GASB) Statement No. 68, Accounting and Financial Reporting for Pensions - an Amendment of GASB Statement No. 27 and
Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an Amendment of GASB
Statement No. 68, for the year ended December 31, 2015. Adoption of the provisions of these statements results in significant change
to the classifications of the components of the financial statements.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis
starting on page 15 and the Schedules of Employer’s Share of the Net Pension Liability, the Schedules of Employer’s Contributions
and the Schedule of Funding Progress for Other Post-Employment Benefit Plan starting on page 70, 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
May 2, 2016
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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, 2015.
Financial Highlights
• The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of the most recent fiscal
year by $8,973,496 (net position). Of this amount, $809,027 (unrestricted net position) may be used to meet the City’s
ongoing obligations to citizens and creditors.
• The beginning unrestricted net position was decreased by $1,414,898 to recognize the effects of GASB Statement No. 68
implementation.
• The City’s total net position increased by $901,817. Governmental activities increased by $760,845 and business-type
activities increased $140,972. The increase in governmental activities is primarily the result of significant capital grants and
contributions related to development.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$4,840,518, an increase of $711,353 in comparison with the prior year. The increase resulted from revenues over
expenditures in the General fund and developer contributions of $570,000 in the Hackamore Upgrade fund.
• At the end of the current fiscal year, unassigned fund balance for the General fund was $1,250,986 or 35.8 percent of total
General fund expenditures and transfer out.
• The City’s total long-term liabilities decreased $893,315 during the current fiscal year primarily as a result of principal
payments on bonds of $279,000 and the recording of a net pension liability of $1,164,908.
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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
Discussion and
Analysis
Basic
Financial
Statements
Required
Supplementary
Information
Government-
wide Financial
Statements
Fund
Financial
Statements
Notes to the
Financial
Statements
Summary Detail
-16-
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
Fund Financial Statements
Government-wide
Statements
Governmental Funds Proprietary Funds Fiduciary Funds
Scope Entire City
government (except
fiduciary funds) and
the City’s component
units
The activities of the City that
are not proprietary or fiduciary,
such as police, fire and parks
Activities the City
operates similar to
private businesses, such
as the water and sewer
system
Instances in which the
City administers
resources on behalf of
someone else, such as
developers
Required
financial
statements
• Statement of Net
Position
• Statement of
Activities
• Balance Sheet
• Statement of Revenues,
Expenditures, and Changes
in Fund Balances
• Statement of Net
Position
• Statement of
Revenues, Expenses
and Changes in Net
Position
• Statement of Cash
Flows
• Statement of
fiduciary net
position
Accounting
Basis and
measurement
focus
Accrual accounting
and economic
resources focus
Modified accrual accounting
and current financial resources
focus
Accrual accounting and
economic resources
focus
Accrual accounting
and economic
resources focus
Type of
asset/liability
information
All assets and
liabilities, both
financial and capital,
and short-term and
long-term
Only assets expected to be used
up and liabilities that come due
during the year or soon
thereafter; no capital assets
included
All assets and liabilities,
both financial and
capital, and short-term
and long-term
All assets and
liabilities, both short-
term and long-term;
fund do not currently
contain capital assets,
although they can
Type of
deferred
outflows/infl
ows of
resources
information
All deferred
outflows/inflows of
resources, regardless of
when cash is received
or paid
Only deferred outflows of
resources expected to be used
up and deferred inflows of
resources that come due during
the year or soon thereafter; no
capital assets included.
All deferred
outflows/inflows of
resources, regardless of
when cash is received
or paid.
All deferred
outflows/inflows of
resources, regardless of
when cash is received
or paid
Type of in
flow/out flow
information
All revenues and
expenses during year,
regardless of when
cash is received or paid
Revenues for which cash is
received during or soon after
the end of the year;
expenditures when goods or
services have been received and
payment is due during the year
or soon thereafter
All revenues and
expenses during the
year, regardless of when
cash is received or paid
All additions and
deductions during the
year, regardless of
when cash is received
or paid
-17-
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 cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of
their costs through user fees and charges (business-type activities). The governmental activities of the City include general
government, public safety, public works, culture and recreation, 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 27 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 18 individual governmental funds, three of which are Debt Service funds. Information is presented separately in
the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances
for the General fund, Debt Service fund, Tax Increment Financing fund, and the Hackamore Upgrade fund, which are considered to be
major funds. Data from the other 12 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 32 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 40 of this report.
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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 43 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 45 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 74 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 and deferred outflows exceeded liabilities and deferred inflows by $8,973,496 at the close of the most recent fiscal year.
The largest portion of the City’s net position (41.1 percent) reflects its investment in capital assets (e.g., land, buildings, infrastructure,
machinery and equipment), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets
to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of Corcoran’s Summary of Net Position
Increase Increase
20152014 (Decrease)2015 2014 (Decrease)
Assets
Current and other assets 5,402,187$ 4,713,275$ 688,912$ 1,729,313$ 2,193,263$ (463,950)$
Capital assets 8,779,405 9,047,729 (268,324) 3,903,561 3,936,577 (33,016)
Total assets 14,181,592 13,761,004 420,588 5,632,874 6,129,840 (496,966)
Deferred outflows of resources 219,858 - 219,858$ - - -$
Liabilities
Noncurrent liabilities outstanding 6,664,388 5,769,837 894,551 3,454,719 3,455,955 (1,236)
Other liabilities 370,774 396,744 (25,970) 145,029 781,731 (636,702)
Total liabilities 7,035,162 6,166,581 868,581 3,599,748 4,237,686 (637,938)
Deferred inflows of resources 425,918 - 425,918$ - - -$
Net position
Net investment in capital assets 3,685,711 3,758,344 (72,633) 1,415,986 1,901,904 (485,918)
Restricted 3,062,772 2,577,978 484,794 - - -
Unrestricted 191,887 1,258,101 (1,066,214) 617,140 (9,750) 626,890
Total net position 6,940,370$ 7,594,423$ (654,053)$ 2,033,126$ 1,892,154$ 140,972$
Governmental Activities Business-type Activities
An additional portion of the City’s net position (34.1 percent) represents resources that are subject to external restrictions on how they
may be used. The remaining balance of unrestricted net position ($809,027) may be used to meet the City’s ongoing obligations to
citizens and creditors.
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Governmental and Business-type activities. Governmental activities increased the City’s net position by $760,845 and business-
type activities increased the City’s net position by $140,972. Significant changes from prior year are noted below:
City of Corcoran’s Changes in Net Position
*Increase Increase
20152014 (Decrease)2015 2014 (Decrease)
Revenues
Program revenues
Charges for services 565,136$ 371,918$ 193,218$ 18,484$ -$ 18,484$
Operating grants and contributions 314,225 356,796 (42,571) - - -
Capital grants and contributions 665,831 846,896 (181,065) 441,073 737,307 (296,234)
General revenues
Property taxes 3,310,428 3,137,688 172,740 - - -
Other taxes 42,979 40,321 2,658 - - -
Grants and contributions not
restricted to specific programs 21,734 11,405 10,329 - - -
Unrestricted investment earnings 5,019 2,148 2,871 2,183 4,698 (2,515)
Gain on sale of capital assets - 7,320 (7,320) - - -
Total revenues 4,925,352 4,774,492 150,860 461,740 742,005 (280,265)
Expenses
General government 775,035 787,804 (12,769) - - -
Public safety 1,562,863 1,488,359 74,504 - - -
Public works 1,564,491 1,549,214 15,277 - - -
Culture and recreation 128,329 109,053 19,276 - - -
Interest on long-term debt 133,789 155,051 (21,262) - - -
Water - - - 162,622 404,591 (241,969)
Sewer - - - 158,146 79,609 78,537
Total expenses 4,164,507 4,089,481 75,026 320,768 484,200 (163,432)
Change in net position
before transfers 760,845 685,011 75,834 140,972 257,805 (116,833)
Transfers - 251,774 (251,774) - (251,774) 251,774
Change in net position 760,845 936,785 (175,940) 140,972 6,031 134,941
Net position, January 1 as restated 6,179,525 6,657,638 (478,113) 1,892,154 1,886,123 6,031
Net position, December 31 6,940,370$ 7,594,423$ (654,053)$ 2,033,126$ 1,892,154$ 140,972$
Governmental Activities Business-type Activities
* GASB Statement No. 68 was implemented for the year ended December 31, 2015 and required a $1,414,898 restatement of
beginning net position for governmental activities. Prior year amounts were not restated causing a variance in ending net position at
December 31, 2014 and beginning net position January 1, 2015.
Property taxes represent 67.2 percent of total revenues in 2015 in governmental activities.
Significant revenues items included:
• Capital grants and contributions amounted to over $1,100,000 between governmental and business-type activities. These
included developer contributions for the Hackamore project ($570,000), connection fees ($291,073) and developer
contributions ($150,000) in the Water fund, and miscellaneous grants and contributions.
• Property taxes increased in 2015 as a result of an increase in the General fund levy.
Significant expenses items included:
• Public safety expenditures increased $74,504 due to increased professional service and wages and salaries expenses.
• Overall business-type expenses decreased $163,432.
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The following graph depicts various governmental activities and shows the revenue and expenses directly related to those activities.
Expenses and Program Revenue - Governmental Activities
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
General government Public safety Public works Culture and recreation Interest on long-term
debt
Expenses Program Revenues
Revenues by Source - Governmental Activities
Charges for services
11.48%
Operating grants and
contributions
6.38%
Capital grants and
contributions
13.52%
Grants and
contributions
unrestricted
0.44%
Property taxes
67.21%
Other taxes
0.87%
Unrestricted
investments earnings
0.10%
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Business-type activities. Business-type activities increased the City’s net position by $140,972.
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 in flows, 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 $4,840,518, an
increase of $711,353 in comparison with the prior year. Approximately 25.5 percent of this total amount ($1,234,045) constitutes
unassigned fund balance, which is available for spending at the City’s discretion. The remainder of fund balance ($3,606,473) is not
available for new spending because it is either 1) nonspendable ($16,775), 2) restricted ($3,132,696), 3) committed ($2,830), or
4) assigned ($454,172). For further classification refer to Note 3E on page 60 of this report.
Increase
Major Funds 2015 2014 (Decrease)
General 1,410,656$ 1,117,761$ 292,895$
Debt Service 165,777$ 155,907$ 9,870$
Tax Increment Financing 1,683,210$ 1,797,122$ (113,912)$
Hackamore Upgrade 855,797$ 285,171$ 570,626$
Fund Balance December 31,
The Tax Increment Financing fund balance decreased $113,912 during the year due to planning expenses for the Downtown Utility
and Street project. Project expenses will continue into 2016.
The General fund balance increased $292,895 during the year. The increase was due to a combination of revenues exceeded budget
expectations by $176,616 and expenditures coming in $85,074 less than budget.
The Debt Service fund has a total fund balance of $165,777, all of which is restricted for payment of future debt service.
The Hackamore Upgrade fund balance increased during the year due to developer contributions of $570,000 in accordance with the
developer agreement.
General Fund Budgetary Highlights
The City’s General fund was not amended during the year.
Revenues exceeded budget by $176,616. The largest positive variances included licenses and permits ($108,910) and
intergovernmental aid ($46,819). Expenditures had a positive budget variance of $85,074, primarily due to the positive budget
variance of $72,284 in public safety.
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Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental type activities as of December 31, 2015, amounts to
$8,779,405 (net of accumulated depreciation). This investment in capital assets includes land, buildings, infrastructure, machinery and
equipment, park facilities, roads, and highways. The City’s investment in capital assets for the current fiscal year decreased 3 percent.
Major capital events during the current fiscal year included the following:
• Completion of Southeast Sewer and Water project
• Purchase of a 2016 Ford police vehicle
• Purchase of a 2015 Chevrolet Traverse police vehicle
• Purchase of a 2015 GMC Sierra 2500HD public works vehicle
• Trade in of Bobcat loader
• Planning and engineering for Downtown Utility and Street Improvement Project
City of Corcoran’s Capital Assets
(net of depreciation)
Increase Increase
2015 2014 (Decrease)2015 2014 (Decrease)
Land 1,410,197$ 1,410,197$ -$ 361,762$ 361,762$ -$
Construction in progress 114,538 315,368 (200,830) - 1,686,628 (1,686,628)
Buildings 4,811,112 4,667,608 143,504 - - -
Equipment 965,728 1,112,389 (146,661) - - -
Infrastructure 1,477,830 1,542,167 (64,337) 3,541,799 1,888,187 1,653,612
Total 8,779,405$ 9,047,729$ (268,324)$ 3,903,561$ 3,936,577$ (33,016)$
Governmental Activities Business-type Activities
Major capital asset events during the current fiscal year included the following:
Capital Assets
Land
14.0%
Infrastructure
39.6%
Buildings
37.9%
Equipment
7.6%
Construction in
progress
0.9%
Additional information on the City’s capital assets can be found in Note 3B starting on page 55 of this report.
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Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $5,116,000, which is solely
composed of general obligation improvement bonds.
City of Corcoran’s Outstanding Debt
Increase Increase
20152014 (Decrease)20152014 (Decrease)
G.O. bonds payable 5,116,000$ 5,375,000$ (259,000)$ -$ -$ -$
Lease revenue bonds payable - 20,000 (20,000) - - -
Revenue bonds payable - - - 3,130,000 3,130,000 -
Unamortized premium on bonds - - - 24,719 25,955 (1,236)
Notes payable - - - 300,000 300,000 -
Compensated absences payable 194,664 211,259 (16,595) - - -
Other postemployment benefits payable 188,816 163,578 25,238 - - -
Net pension liability 1,164,908 - 1,164,908 - - -
Total 6,664,388$ 5,769,837$ 894,551$ 3,454,719$ 3,455,955$ (1,236)$
Governmental Activities Business-type Activities
The City’s total debt increased $893,315 during the current fiscal year. The increase was due to the pension liability recorded with the
adoption of GASB Statement No. 68.
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
$19,342,044. The City has $5,116,000 of debt subject to this limit.
Additional information on the City’s long-term debt can be found in Note 3D starting on page 57 of this report.
Economic Factors and Next Year’s Budgets and Rates
The City’s property tax rate decreased from 49.734 percent in 2014 to 45.311 percent in 2015. The City continues to work towards
increasing its unrestricted fund balance and remove unfunded liabilities. Property values continue to increase around the City and a
new residential development is constructing homes in the first three of nine phases.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s
finances. Questions concerning any of the information provided in this report or requests for additional financial information should
be addressed to the City Administrator, City of Corcoran 8200 County Road 116, Corcoran, MN 55340.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF CORCORAN
CORCORAN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
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THIS PAGE IS LEFT BLANK
INTENTIONALLY
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CITY OF CORCORAN, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2015
Governmental Business-type
Activities Activities Total
ASSETS
Cash and temporary investments 5,013,698$ 1,729,313$ 6,743,011$
Receivables
Accounts 60,033 - 60,033
Interest 2,018 - 2,018
Delinquent taxes 62,062 - 62,062
Special assessments 176,451 - 176,451
Due from other governments 87,925 - 87,925
Capital assets
Nondepreciable 1,524,735 361,762 1,886,497
Depreciable, net of accumulated depreciation 7,254,670 3,541,799 10,796,469
TOTAL ASSETS 14,181,592 5,632,874 19,814,466
DEFERRED OUTFLOWS OF RESOURCES
Pension resources 219,858 - 219,858
LIABILITIES
Accounts payable 271,741 106,175 377,916
Accrued salaries payable 51,415 - 51,415
Accrued interest payable 47,618 38,854 86,472
Noncurrent liabilities
Due within one year 409,051 85,000 494,051
Due in more than one year 6,255,337 3,369,719 9,625,056
TOTAL LIABILITIES 7,035,162 3,599,748 10,634,910
DEFERRED INFLOWS OF RESOURCES
Pension resources 425,918 - 425,918
NET POSITION
Net investment in capital assets 3,685,711 1,415,986 5,101,697
Restricted for
Tax increment financing 1,683,210 - 1,683,210
Debt service 118,159 - 118,159
Park dedication fees 284,852 - 284,852
Police expenditures 20,562 - 20,562
Capital outlay 955,989 - 955,989
Unrestricted 191,887 617,140 809,027
TOTAL NET POSITION 6,940,370$ 2,033,126$ 8,973,496$
The notes to the financial statements are an integral part of this statement.
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CITY OF CORCORAN, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2015
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental activities
General government 775,035$ 53,915$ 16,520$ -$
Public safety 1,562,863 373,034 124,010 -
Public works 1,564,491 131,991 155,591 576,918
Culture and recreation 128,329 6,196 18,104 88,913
Interest on long term debt 133,789 - - -
Total governmental activities 4,164,507 565,136 314,225 665,831
Business-type activities
Water 162,622 14,069 - 360,077
Sewer 158,146 4,415 - 80,996
Total business-type activities 320,768 18,484 - 441,073
Total 4,485,275$ 583,620$ 314,225$ 1,106,904$
General revenues
Taxes
Property taxes, levied for general purposes
Property taxes, levied for debt service
Franchise taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Total general revenues
Change in net position
Net position, January 1 as restated (Note 7)
Net position, December 31
The notes to the financial statements are an integral part of this statement.
Functions/Programs
Program Revenues
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Governmental Business-type
Activities Activities Total
(704,600)$ -$ (704,600)$
(1,065,819) - (1,065,819)
(699,991) - (699,991)
(15,116) - (15,116)
(133,789) - (133,789)
(2,619,315) - (2,619,315)
- 211,524 211,524
- (72,735) (72,735)
- 138,789 138,789
(2,619,315) 138,789 (2,480,526)
2,869,701 - 2,869,701
440,727 - 440,727
42,979 - 42,979
21,734 - 21,734
5,019 2,183 7,202
3,380,160 2,183 3,382,343
760,845 140,972 901,817
6,179,525 1,892,154 8,071,679
6,940,370$ 2,033,126$ 8,973,496$
Net Revenues (Expenses) and Changes in Net Position
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INTENTIONALLY
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FUND FINANCIAL STATEMENTS
CITY OF CORCORAN
CORCORAN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
-31-
CITY OF CORCORAN, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2015
100 401
Debt Tax Increment
General Service Financing
ASSETS
Cash and temporary investments 1,517,024$ 165,777$ 1,747,553$
Receivables
Accounts 45,727 - -
Interest 2,018 - -
Delinquent taxes 62,062 - -
Special assessments 154,634 - -
Due from other governments 87,925 - -
Due from other funds 16,775 - -
TOTAL ASSETS 1,886,165$ 165,777$ 1,747,553$
LIABILITIES
Accounts payable 207,398$ -$ 64,343$
Accrued salaries payable 51,415 - -
Due to other funds - - -
TOTAL LIABILITIES 258,813 - 64,343
TOTAL DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - taxes 62,062 - -
Unavailable revenues - special assessments 154,634 - -
TOTAL DEFERRED INFLOWS OF RESOURCES 216,696 - -
FUND BALANCES
Nonspendable 16,775 - -
Restricted - 165,777 1,683,210
Committed - - -
Assigned 142,895 - -
Unassigned 1,250,986 - -
TOTAL FUND BALANCES 1,410,656 165,777 1,683,210
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 1,886,165$ 165,777$ 1,747,553$
The notes to the financial statements are an integral part of this statement.
-32-
419 Other Total
Hackamore Governmental Governmental
Upgrade Funds Funds
855,797$ 727,547$ 5,013,698$
- 14,306 60,033
- - 2,018
- - 62,062
- 21,817 176,451
- - 87,925
- - 16,775
855,797$ 763,670$ 5,418,962$
-$ -$ 271,741$
- - 51,415
- 16,775 16,775
- 16,775 339,931
- - 62,062
- 21,817 176,451
- 21,817 238,513
- - 16,775
855,797 427,912 3,132,696
- 2,830 2,830
- 311,277 454,172
- (16,941) 1,234,045
855,797 725,078 4,840,518
855,797$ 763,670$ 5,418,962$
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INTENTIONALLY
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CITY OF CORCORAN, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
DECEMBER 31, 2015
Amounts reported for governmental activities in the statement of net position are different because
Total fund balances - governmental 4,840,518$
Capital assets used in governmental activities are not financial
resources and therefore are not reported as assets in governmental funds.
Cost of capital assets 12,519,872
Less: accumulated depreciation (3,740,467)
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 (5,116,000)
Compensated absences payable (194,664)
Other postemployment benefits payable (188,816)
Net pension liability (1,164,908)
Some receivables are not available soon enough to pay for current period expenditures,
and, therefore, are unavailable in the funds.
Delinquent taxes receivable 62,062
Special assessments receivable 176,451
Governmental funds do not report long-term amounts related to pensions.
Deferred outflows of pension resources 219,858
Deferred inflows of pension resources (425,918)
Governmental funds do not report a liability for accrued interest until due and payable.(47,618)
Total net position - governmental activities 6,940,370$
The notes to the financial statements are an integral part of this statement.
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CITY OF CORCORAN, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2015
100 401
Debt Tax Increment
General Service Financing
REVENUES
Taxes 2,919,160$ 440,727$ -$
Licenses and permits 320,160 - -
Intergovernmental 296,271 - -
Charges for services 162,313 - -
Fines and forfeitures 41,988 - -
Special assessments - - -
Interest on investments 1,036 27 2,357
Miscellaneous 45,779 - -
TOTAL REVENUES 3,786,707 440,754 2,357
EXPENDITURES
Current
General government 803,329 - -
Public safety 1,394,409 - -
Public works 1,183,838 - -
Culture and recreation 63,503 - -
Capital outlay
General government - - -
Public safety - - -
Public works 6,622 - 116,269
Culture and recreation 38,316 - -
Debt service
Principal - 279,000 -
Interest and other charges - 140,739 -
TOTAL EXPENDITURES 3,490,017 419,739 116,269
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 296,690 21,015 (113,912)
OTHER FINANCING SOURCES (USES)
Transfers in 21,205 - -
Transfers out (25,000) (11,145) -
Insurance recovery - - -
Sale of capital assets - - -
TOTAL OTHER FINANCING SOURCES (USES)(3,795) (11,145) -
NET CHANGE IN FUND BALANCES 292,895 9,870 (113,912)
FUND BALANCES, JANUARY 1 1,117,761 155,907 1,797,122
FUND BALANCES, DECEMBER 31 1,410,656$ 165,777$ 1,683,210$
The notes to the financial statements are an integral part of this statement.
-36-
419 Other Total
Hackamore Governmental Governmental
Upgrade Funds Funds
-$ -$ 3,359,887$
- - 320,160
- 12,874 309,145
570,000 8,415 740,728
- - 41,988
- 3,599 3,599
626 973 5,019
- 60,322 106,101
570,626 86,183 4,886,627
- - 803,329
- 17,015 1,411,424
- - 1,183,838
- - 63,503
- 3,504 3,504
- 85,804 85,804
- 43,361 166,252
- 37,702 76,018
- - 279,000
- - 140,739
- 187,386 4,213,411
570,626 (101,203) 673,216
- 25,000 46,205
- (10,060) (46,205)
- 37,106 37,106
- 1,031 1,031
- 53,077 38,137
570,626 (48,126) 711,353
285,171 773,204 4,129,165
855,797$ 725,078$ 4,840,518$
-37-
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, 2015
Amounts reported for governmental activities in the statement of activities are different because
Total net change in fund balances - governmental funds 711,353$
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 272,268
Depreciation expense (516,835)
Governmental funds report a gain (loss) on sale of capital assets to the extent of cash exchanged, whereas the
disposition of the assets book value is included in the total gain (loss) in the statement of activities.
Disposals (108,452)
Depreciation on disposals 84,695
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.
Principal repayments 279,000
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.6,950
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 (6,480)
Special assessments 3,059
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 16,595
Other postemployment benefits costs (25,238)
Long-term pension activity is not reported in governmental funds.
Pension expense 38,890
Direct aid contribution 5,040
Change in net position - governmental activities 760,845$
The notes to the financial statements are an integral part of this statement.
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CITY OF CORCORAN, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 2,913,144$ 2,913,144$ 2,919,160$ 6,016$
Licenses and permits 211,250 211,250 320,160 108,910
Intergovernmental 249,452 249,452 296,271 46,819
Charges for services 150,905 150,905 162,313 11,408
Fines and forfeitures 60,000 60,000 41,988 (18,012)
Interest on investments 2,000 2,000 1,036 (964)
Miscellaneous 23,340 23,340 45,779 22,439
TOTAL REVENUES 3,610,091 3,610,091 3,786,707 176,616
EXPENDITURES
Current
General government 783,374 783,374 803,329 (19,955)
Public safety 1,466,693 1,466,693 1,394,409 72,284
Public works 1,202,963 1,202,963 1,183,838 19,125
Culture and recreation 80,259 80,259 63,503 16,756
Capital outlay
Public works 4,500 4,500 6,622 (2,122)
Culture and recreation 37,302 37,302 38,316 (1,014)
TOTAL EXPENDITURES 3,575,091 3,575,091 3,490,017 85,074
EXCESS OF REVENUES
OVER EXPENDITURES 35,000 35,000 296,690 261,690
OTHER FINANCING USES
Transfers out (35,000) (35,000) (25,000) 10,000
NET CHANGE IN FUND BALANCES - - 292,895 292,895
FUND BALANCES, JANUARY 1 1,117,761 1,117,761 1,117,761 -
FUND BALANCES, DECEMBER 31 1,117,761$ 1,117,761$ 1,410,656$ 292,895$
The notes to the financial statements are an integral part of this statement.
Budgeted Amounts
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CITY OF CORCORAN, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2015
Water Sewer Totals
ASSETS
CURRENT ASSETS
Cash and temporary investments 1,200,107$ 529,206$ 1,729,313$
NONCURRENT ASSETS
Capital assets
Land 235,145 126,617 361,762
Infrastructure 1,640,503 2,126,163 3,766,666
Less: accumulated depreciation (101,372) (123,495) (224,867)
Net capital assets 1,774,276 2,129,285 3,903,561
TOTAL ASSETS 2,974,383 2,658,491 5,632,874
LIABILITIES
CURRENT LIABILITIES
Accounts payable 44,991 61,184 106,175
Accrued interest payable 17,272 21,582 38,854
Current portion of bonds payable 38,000 47,000 85,000
TOTAL CURRENT LIABILITIES 100,263 129,766 230,029
NONCURRENT LIABILITIES
Notes payable 300,000 - 300,000
Bonds payable, net of premium 1,368,289 1,701,430 3,069,719
TOTAL NONCURRENT LIABILITIES 1,668,289 1,701,430 3,369,719
TOTAL LIABILITIES 1,768,552 1,831,196 3,599,748
NET POSITION
Net investment in capital assets 653,300 762,686 1,415,986
Unrestricted 552,531 64,609 617,140
TOTAL NET POSITION 1,205,831$ 827,295$ 2,033,126$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
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CITY OF CORCORAN, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2015
Water Sewer Totals
OPERATING REVENUES
Charges for services 14,069$ 4,415$ 18,484$
OPERATING EXPENSES
Personal services 13,834 13,834 27,668
Supplies 14,457 3,077 17,534
Repairs and maintenance 27,117 14,542 41,659
Depreciation 54,619 70,774 125,393
TOTAL OPERATING EXPENSES 110,027 102,227 212,254
OPERATING LOSS (95,958) (97,812) (193,770)
NONOPERATING REVENUES (EXPENSES)
Interest on investments 1,541 642 2,183
Interest expense (52,595) (55,919) (108,514)
TOTAL NONOPERATING REVENUES (EXPENSES)(51,054) (55,277) (106,331)
LOSS BEFORE CONTRIBUTIONS (147,012) (153,089) (300,101)
CAPITAL CONTRIBUTIONS
Connection fees 210,077 80,996 291,073
Developer contributions 150,000 - 150,000
CHANGE IN NET POSITION 213,065 (72,093) 140,972
NET POSITION, JANUARY 1 992,766 899,388 1,892,154
NET POSITION, DECEMBER 31 1,205,831$ 827,295$ 2,033,126$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
-41-
CITY OF CORCORAN, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2015
Water Sewer Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 14,069$ 4,415$ 18,484$
Payments to suppliers (31,305) (8,519) (39,824)
Payments to employees (13,834) (13,834) (27,668)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES (31,070) (17,938) (49,008)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Connection fees and developer contributions 360,077 80,996 441,073
Acquisition of capital assets (464,668) (322,634) (787,302)
Transfer of capital assets 295,706 (295,706) -
Transfer of bonds payable (373,750) 373,750 -
Interest paid on debt (36,012) (34,884) (70,896)
NET CASH USED BY CAPITAL
AND RELATED FINANCING ACTIVITIES (218,647) (198,478) (417,125)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments 1,541 642 2,183
NET DECREASE IN CASH AND CASH EQUIVALENTS (248,176) (215,774) (463,950)
CASH AND CASH EQUIVALENTS, JANUARY 1 1,448,283 744,980 2,193,263
CASH AND CASH EQUIVALENTS, DECEMBER 31 1,200,107$ 529,206$ 1,729,313$
RECONCILIATION OF OPERATING LOSS
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating loss (95,958)$ (97,812)$ (193,770)$
Adjustments to reconcile operating loss to
net cash provided (used) by operating activities
Depreciation 54,619 70,774 125,393
Increase in liabilities
Accounts payable 10,269 9,100 19,369
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES (31,070)$ (17,938)$ (49,008)$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets on account 34,723$ 52,084$ 86,807$
Amortization of bond premium 689$ 547$ 1,236$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
-42-
CITY OF CORCORAN, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
DECEMBER 31, 2015
500 501
Lions and
Escrow Jaycees Total
ASSETS
Cash and temporary investments 435,787$ 6,000$ 441,787$
Accounts receivable 2,497 - 2,497
TOTAL ASSETS 438,284$ 6,000$ 444,284$
LIABILITIES
Accounts payable 24,826$ 6,000$ 30,826$
Deposits payable 413,458 - 413,458
TOTAL LIABILITIES 438,284$ 6,000$ 444,284$
The notes to the financial statements are an integral part of this statement.
Agency
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THIS PAGE IS LEFT BLANK
INTENTIONALLY
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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.
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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.
-46-
CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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 Debt Service fund accounts for the resources accumulated and payments made for principal and interest on
long-term general obligation debt of governmental funds.
The Tax Increment Financing fund accounts for the City’s tax increment financing activities.
The Hackamore Upgrade fund tracks the Hackamore Upgrade project finances.
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.
-47-
CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
D. Assets, deferred outflows of resources, 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. Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest
category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute
section 126C.55.
6. Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System.
7. 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.
8. 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.
9. 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.
-48-
CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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 lending/borrowing arrangements outstanding at the end of the fiscal
year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from
other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported
as “due to/from other funds”.
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.
-49-
CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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
Deferred outflows of resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The City has only one item that qualifies for reporting in this category. Accordingly, the item, deferred
pension resources, is reported only in the statement of net position. This item results from actuarial calculations and
current year pension contributions made subsequent to the measurement date.
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, 2015.
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.
-50-
CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense,
information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions
to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by
PERA. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and
refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
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.
The City has an additional item which qualifies for reporting in this category. The item, deferred pension resources, is
reported only in the statement of net position and results from actuarial calculations.
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.
-51-
CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Net position
In the government-wide financial statements, net position represents the difference between assets and deferred outflows
of resources, and liabilities and deferred inflows of resources. 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.
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 30th, 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, 2015:
Amount
Nonmajor
Police Donation 166$
Shannon Lane 16,775
Fund
The deficit in the Shannon Lane fund will be eliminated with future special assessment collections. The Police Donation
deficit will be eliminated with future revenues.
-52-
CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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, bonds, or irrevocable standby letters
of credit from Federal Home Loan Banks.
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 $5,640,675 and the bank balance was $5,694,765. Of the bank
balance, $577,460 was covered by federal depository insurance, and the remainder was covered by collateral held by the
City’s agent in the City’s name.
-53-
CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Investments
As of December 31, 2015, the City had the following investments that are insured or registered, or securities held by the
City or its agent in the City’s name.
Fair Value
Credit Segmented and
Quality/Time Carrying
Ratings (1)Distribution (2)Amount
Pooled investments
Money Market Mutual funds N/A Less than 6 months 50,945$
Non-pooled investments
Brokered Certificates of Deposit N/A Less than 6 months 1,493,178
Total investments 1,544,123$
Types of Investments
(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 48 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 5,640,675$
Investments 1,544,123
Total 7,184,798$
Cash and temporary investments
Statement of Net Position 6,743,011$
Statement of Fiduciary Net Position 441,787
Total 7,184,798$
-54-
CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
B. Capital assets
Capital asset activity for the year ended December 31, 2015 was as follows:
Beginning Ending
BalanceIncreasesDecreasesBalance
Governmental activities
Capital assets not being depreciated
Land 1,410,197$ -$ -$ 1,410,197$
Construction in progress 315,368 150,938 (351,768) 114,538
Total capital assets,
not being depreciated 1,725,565 150,938 (351,768) 1,524,735
Capital assets, being depreciated
Buildings 5,531,508 351,768 - 5,883,276
Equipment 3,168,881 121,330 (108,452) 3,181,759
Infrastructure 1,930,103 - - 1,930,103
Total capital assets
being depreciated 10,630,492 473,098 (108,452) 10,995,138
Less accumulated depreciation
Buildings (863,900) (208,264) - (1,072,164)
Equipment (2,056,492) (244,234) 84,695 (2,216,031)
Infrastructure (387,936) (64,337) - (452,273)
Total accumulated
depreciation (3,308,328) (516,835) 84,695 (3,740,468)
Total capital assets,
being depreciated, net 7,322,164 (43,737) (23,757) 7,254,670
Governmental activities
capital assets, net 9,047,729$ 107,201$ (375,525)$ 8,779,405$
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Beginning Ending
BalanceIncreasesDecreasesBalance
Business-type activities
Capital assets not being depreciated
Land 361,762$ -$ -$ 361,762$
Construction in progress 1,686,628 92,377 (1,779,005) -
Total capital assets,
not being depreciated 2,048,390 92,377 (1,779,005) 361,762
Capital assets, being depreciated
Infrastructure 1,987,661 1,779,005 - 3,766,666
Less accumulated depreciation
Infrastructure (99,474) (125,393) - (224,867)
Total capital assets,
being depreciated, net 1,888,187 1,653,612 - 3,541,799
Business-type activities
capital assets, net 3,936,577$ 1,745,989$ (1,779,005)$ 3,903,561$
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government 54,354$
Public safety 87,845
Public works 349,428
Culture and recreation 25,208
Total depreciation expense - governmental activities 516,835$
Business-type activities
Water 54,619$
Sewer 70,774
Total depreciation expense - business-type activities 125,393$
C. Interfund balances and transfers
Interfund balances
The composition of internal balances as of December 31, 2015 is as follows:
Payable Fund Purpose Amount
General Shannon Lane Finance capital purchases 16,775$
Receivable Fund
The interfund loan will be repaid as special assessments are collected in the Shannon Lane fund.
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Interfund transfers
In 2015, a transfer of $25,000 was completed from the General fund to the nonmajor governmental Capital Equip-Cert
fund for future capital purchases. Also, transfers out of $10,046 and $10,127 were completed from the nonmajor
governmental County Road 19 Improvement fund and Debt Service fund, respectively, to the General fund to close out
funds.
D. Long-term debt
General obligation bonds (G.O. bonds)
The City issued G.O. bonds in governmental activities for equipment purchases and the construction of the new public
works facility. Both will be repaid with tax levy. Each year the tax levy equals 105 percent of the amount required for
debt service. The excess of 5 percent is to cover any delinquencies in tax payments.
G.O. bonds are direct obligations and pledge the full faith and credit of the City. Bonds currently outstanding are as
follows:
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Capital Improvement
Bonds Series 2012B 4,000,000$ 2.00 - 3.00 %11/01/1202/01/383,960,000$
G.O. Equipment
Certificate of 2008A 622,000 3.50 - 4.05 04/08/0812/01/17188,000
G.O. Equipment
Certificate of 2010A 470,000 2.35 - 3.95 04/01/1002/01/20276,000
G.O. Equipment
Certificate of 2012A 410,000 0.65 - 1.75 11/01/1211/01/22290,000
G.O. Equipment
Certificate of 2014A 442,000 1.75 - 3.00 05/15/1405/15/24402,000
Total General Obligation Bonds 5,116,000$
Interest
Description Rate
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending
December 31, Principal Interest Total
2016 265,000$ 128,397$ 393,397$
2017 310,000 120,847 430,847
2018 201,000 112,180 313,180
2019 266,000 106,824 372,824
2020 274,000 100,408 374,408
2021 - 2025 1,060,000 422,240 1,482,240
2026 - 2030 905,000 319,650 1,224,650
2031 - 2035 1,080,000 194,425 1,274,425
2036 - 2038 755,000 34,725 789,725
Total 5,116,000$ 1,539,696$ 6,655,696$
Governmental Activities
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
G.O. revenue bonds
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. Annual principal and interest payments on the bonds are expected to require over 412 and
1,173 percent of revenues from the Water and Sewer funds, respectively. For 2015, interest paid and total operating
revenues for the Water fund were $57,953 and $14,069, respectively. For 2015, interest paid and total operating revenues
for the Sewer fund were $51,797 and $4,415, respectively.
G.O. revenue bonds currently outstanding are as follows:
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Utility Revenue Bonds,
Series 2014B 3,130,000$ 2.00 - 3.625 %08/01/1402/01/353,130,000$
Interest
Description Rate
Annual debt service requirements to maturity for G.O. revenue bonds are as follows:
Year Ending
December 31, Principal Interest Total
2016 85,000$ 92,400$ 177,400$
2017 135,000 90,200 225,200
2018 135,000 87,500 222,500
2019 135,000 84,800 219,800
2020 140,000 82,050 222,050
2021 - 2025 745,000 348,875 1,093,875
2026 - 2030 855,000 227,694 1,082,694
2031 - 2035 900,000 82,506 982,506
Total 3,130,000$ 1,096,025$ 4,226,025$
Business-Type Activities
Notes payable
The City has the following note payable outstanding for water connection charges.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
Notes payable 300,000$ 5.50 %01/01/1412/20/27300,000$
Interest
Description Rate
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Annual debt service requirements to maturity for notes outstanding are as follows:
Year Ending
December 31, Principal Interest Total
2016 -$ 16,500$ 16,500$
2017 - 16,500 16,500
2018 23,218 16,186 39,404
2019 24,512 14,892 39,404
2020 25,879 13,525 39,404
2021 - 2025 152,716 44,304 197,020
2026 - 2027 73,675 5,133 78,808
Total 300,000$ 127,040$ 427,040$
Business-Type Activities
Changes in long-term liabilities
Long-term liability activity for the year ended December 31, 2015, was as follows:
Beginning Ending Due Within
BalanceIncreasesDecreasesBalance One Year
Governmental activities
Bonds payable
G.O. bonds payable 5,375,000$ -$ (259,000)$ 5,116,000$ 265,000$
Lease revenue bonds payable 20,000 - (20,000) - -
Total bonds payable 5,395,000 - (279,000) 5,116,000 265,000
Compensated absences payable 211,259 126,505 (143,100) 194,664 144,051
Net pension liability
GERF - 656,490 *(127,873) 528,617 -
PEPFF - 842,864 *(206,573) 636,291 -
Other postemployment
benefits payable 163,578 33,658 (8,420) 188,816 -
Governmental activity
long-term liabilities 5,769,837$ 1,659,517$ (764,966)$ 6,664,388$ 409,051$
Business-type activities
Bonds payable
Revenue bonds payable 3,130,000$ -$ -$ 3,130,000$ 85,000$
Unamortized premium on bonds 25,955 - (1,236) 24,719 -
Total bonds payable 3,155,955 - (1,236) 3,154,719 85,000
Notes payable 300,000 - - 300,000 -
Business-type activity
long-term liabilities 3,455,955$ -$ (1,236)$ 3,454,719$ 85,000$
* Includes 1/1/2015 pension liability balance related to GASB Statement No. 68 implementation. See Note 4 for further
detail.
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
E. Components of fund balance
At December 31, 2015, 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:
Nonmajor
Debt Tax Increment Hackmore Governmental
General Service Financing Upgrade Funds Total
Nonspendable
Due from other funds $ 16,775 $ - $ - $ - $ - $ 16,775
Restricted for
Tax increment financing $ - $ - $ 1,683,210 $ - $ - $ 1,683,210
Debt service - 165,777 - - - 165,777
Capital outlay - - - 855,797 407,350 1,263,147
Police expenditures - - - 20,562 20,562
Total restricted $ - $ 165,777 $ 1,683,210 $ 855,797 $ 427,912 $ 3,132,696
Committed to
Truck safety $ - $ - $ - $ - $ 2,830 $ 2,830
Assigned to
Long range planning $ - $ - $ - $ - $ - $ -
Capital outlay - - - - 284,632 284,632
Police expenditures - - - - 26,645 26,645
Total assigned $ - $ - $ - $ - $ 311,277 $ 311,277
Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE
Substantially all employees of the City are required by state law to belong to the pension plan administered by Public
Employees Retirement Association (PERA), which is administered on a statewide basis.
Disclosures relating to this plan follow:
A. Plan description
The City participates in the following defined benefit pension plans administered by the Public Employees Retirement
Association (PERA). PERA’s defined benefit pension plans are established and administered in accordance with
Minnesota statutes, chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section
401 (a) of the Internal Revenue Code.
General Employees Retirement Plan (GERF)
All full-time and certain part-time employees of the City, are covered by the General Employees Retirement Fund
(GERF). 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. The Basic Plan was closed to new members in 1967. All
new members must participate in the Coordinated Plan.
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
B. Benefits provided
PERA provides retirement, disability and death benefits. Benefit provisions are established by Minnesota statute and can
only be modified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan.
Members in plans that are at least 90 percent funded for two consecutive years are given 2.5 percent increases. Members
in plans that have not exceeded 90 percent funded, or have fallen below 80 percent, are given 1 percent increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active plan
participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the
provisions in effect at the time they last terminated their public service.
GERF benefits
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 ten 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 ten 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 members hired prior to July 1, 1989, a full
annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or
after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
C. Contributions
Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be
modified by the state legislature.
GERF contributions
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 calendar year 2014. Coordinated Plan members contributed 6.50 percent
of pay in 2015. In calendar year 2014, the City was required to contribute the following percentages of annual covered
payroll: 11.78 percent for Basic Plan members and 7.25 percent of Coordinated Plan members. In 2015, employer rates
increased to 7.5 percent in the Coordinated Plan. The City’s contributions to the GERF for the year ending
December 31, 2015, 2014 and 2013 were $46,319, $43,661 and $43,976. The City’s contributions were equal to the
contractually required contributions for each year as set by Minnesota statute.
PEPFF contributions
Plan members were required to contribute 10.8 percent of their annual covered salary in calendar year 2015. The City
was required to contribute 16.20 percent of pay for PEPFF members in calendar year 2015. The City’s contributions to
the PEPFF for the years ending December 31, 2015, 2014 and 2013 were $77,027, $80,862, and $78,921 respectively.
The City’s contributions were equal to the contractually required contributions for each year as set by Minnesota statute.
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
D. Pension costs
GERF pension costs
At December 31, 2015, the City reported a liability of $528,617 for its proportionate share of the GERF’s net pension
liability. The net pension liability was measured as of June 30, 2014, and the total pension liability used to calculate the
net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension
liability was based on the City’s contributions received by PERA during the measurement period for employer payroll
paid dates from July 1, 2013, through June 30, 2014, relative to the total employer contributions received from all of
PERA’s participating employers. At June 30, 2014, the City’s proportionate share was 0.0102 percent which was a
decrease of 0.0017 percent from its proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of $33,977 for its proportionate share of
GERF’s pension expense.
At December 31, 2015, the City reported its proportionate share of GERF’s deferred outflows of resources and deferred
inflows of resources, and its contributions subsequent to the measurement date, from the following sources:
Deferred OutflowsDeferred Inflows
of Resourcesof Resources
Differences between expected and
actual experience 5,719$ 26,651$
Changes in actuarial assumptions 32,103 -
Net difference between projected and
actual earnings on plan investments - 47,056
Changes in proportion - 68,983
Contributions to GERF subsequent
to the measurement date 23,314 -
Total 61,136$ 142,690$
Deferred outflows of resources totaling $23,314 related to pensions resulting from the City’s contributions to GERF
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to GERF pensions
will be recognized in pension expense as follows:
2016 32,823$
2017 32,823
2018 51,735
2019 (12,513)
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
PEPFF pension costs
At December 31, 2015, the City reported a liability of $636,191 for its proportionate share of the PEPFF’s net pension
liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the
net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension
liability was based on the City’s contributions received by PERA during the measurement period for employer payroll
paid dates from July 1, 2014 through June 30, 2015 relative to the total employer contributions received from all of
PERA’s participating employers. At June 30, 2015, the City’s proportionate share was 0.056 percent which was a
decrease of 0.006 percent from its proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of $50,479 for its proportionate share of
PEPFF’s pension expense. The City also recognized $5,040 for the year ended December 31, 2015, as pension expense
and grant revenue for its proportionate share of the State of Minnesota’s on-behalf contributions to the PEPFF.
Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year,
starting in fiscal year 2014.
At December 31, 2015, the City reported its proportionate share of PEPFF’s deferred outflows of resources and deferred
inflows of resources, and its contributions subsequent to the measurement date, from the following sources:
Deferred Deferred
Outflows Inflows
of Resourcesof Resources
Differences between expected and
actual experience 750$ 103,186$
Changes in actuarial assumptions 120,867 -
Net difference between projected and
actual earnings on plan investments - 112,967
Changes in proportion - 67,075
Contributions to PEPFF subsequent
to the measurement date 37,105 -
Total 158,722$ 283,228$
Deferred outflows of resources totaling $37,105 related to pensions resulting from the City’s contributions to PEPFF
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to GERF pensions
will be recognized in pension expense as follows:
2016 50,543$
2017 50,543
2018 50,543
2019 (24,067)
2020 34,049
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
E. Actuarial assumptions
The total pension liability in the June 30, 2014, actuarial valuation was determined using the following actuarial
assumptions:
Inflation
Active member payroll growth
Investment rate of return
2.75% per year
3.50% per year
7.90%
Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and
disabilitants were based on RP-2000 tables for males or females, as appropriate, with slight adjustments. Cost of living
benefit increases for retirees are assumed to be: 1 percent effective every January 1st until 2034, then 2.5 percent for
GERF and PEPFF.
Actuarial assumptions used in the June 30, 2015 valuation were based on the results of actuarial experience studies. The
experience study in the GERF was for the period July 1, 2004 through June 30, 2008, with an update of economic
assumptions in 2014. The experience study for PEPFF was for the period July 1, 2004, through June 30, 2009.
Experience studies have not been prepared for PERA’s other plans, but assumptions are reviewed annually.
There were no changes in actuarial assumptions in 2015.
The long-term expected rate of return on pension plan investments is 7.9 percent. The State Board of Investment, which
manages the investments of PERA, prepares an analysis of the reasonableness of the long-term expected rate of return on
a regular basis using a building-block method in which best-estimate ranges of expected future rates of return are
developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by
weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best
estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Class
Domestic stocks 45.00 %5.50 %
International stocks 15.00 6.0
Bonds 18.00 1.45
Alternative assets 20.00 6.40
Cash 2.00 0.50
Total 100.00 %
Target Long-Term Expected
Allocation Real Rate of Return
F. Discount rate
The discount rate used to measure the total pension liability was 7.9 percent. The projection of cash flows used to
determine the discount rate assumed that employee and employer contributions will be made at the rate specified in
statute. Based on that assumption, each of the pension plan’s fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
G. Pension liability sensitivity
The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated
using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net
pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point
higher than the current discount rate:
1 Percent 1 Percent
Decrease (6.90%)Current (7.90%)Increase (8.90%)
GERF 831,174$ 528,617$ 278,752$
PEPFF 1,240,138 636,291 137,408
City Proportionate Share of NPL
H. Pension plan fiduciary net position
Detailed information about each defined benefit pension plan’s fiduciary net position is available in a separately-issued
PERA financial report. 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.
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
$8,420 to the plan for the year ended December 31, 2015. As of January 1, 2015, the City has one retiree receiving health
benefits from the plan.
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 5: POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS - CONTINUED
C. Annual other postemployment benefit cost
The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution of the employer (ARC) of the City, an amount actuarially determined in accordance with the parameters of
GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed
thirty years.
The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed
to the plan, and changes in the City’s net OPEB obligation:
Annual required contribution 32,473$
Interest on net OPEB obligation 7,361
Adjustment to annual required contribution (6,176)
Annual OPEB cost (expense)33,658
Contributions made (8,420)
Increase in net OPEB obligation 25,238
Net OPEB obligation - beginning of year 163,578
Net OPEB obligation - end of year 188,816$
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 2015, 2014, and 2013 follows:
Fiscal
Year Annual Net OPEB
Ending OPEB Cost Obligation
12/31/2015 33,658$ 25.0 %188,816$
12/31/2014 32,432 19.9 163,578
12/31/2013 35,254 30.9 137,611
Trend Information
Contributed
Annual OPEB
Percentage
D. Funded status and funding progress
As of January 1, 2015, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $334,574,
all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was
$1,160,842, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 28.8 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.
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 5: POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS - CONTINUED
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, 2015 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, 2015 was 30 years.
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 2015 taxable value of property located in the City is $644,734,800 which calculated to a debt limit of $19,342,044.
The City has $5,116,000 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.
D. Subsequent event
In April 14, 2016, the City issued General Obligation Bonds, Series 2016A. The bonds in the amount of $2,915,000,
were issued to provide financing for the downtown utility and street improvement project, the acquisition of capital
equipment, and other utility improvements.
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CITY OF CORCORAN, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 7: CHANGE IN ACCOUNTING STANDARDS
During 2015, the City implemented several new accounting pronouncements issued by the Governmental Accounting
Standards Board (GASB), including Statement No. 68, Accounting and Financial Reporting for Pensions - an Amendment of
GASB Statement No. 27 and Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement
Date - an Amendment of GASB Statement No. 68, for the year ended December 31, 2015. These standards required a
retroactive implementation which resulted in the restatement of beginning balances in the December 31, 2014 financial
statements. Changes related to these standards are reflected in the financial statements and schedules and related disclosures
are included in Note 4.
As a result of the restatement of beginning balances, the following schedule reconciles the previously reported
December 31, 2014 balances to the December 31, 2015 financial statements:
Net Position
January 1, 2015 Net Position
as Previously Prior Period January 1, 2015
Reported Restatement (1)as Restated
Governmental activities 7,594,423$ (1,414,898)$ 6,179,525$
December 31, 2015
Fund
(1) To record beginning net pension liability, deferred inflows of resources and deferred outflow of resources at
December 31, 2014.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CORCORAN
CORCORAN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
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CITY OF CORCORAN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 2015
Schedule of employer’s share of PERA net pension liability - General Employees Retirement Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net PensionAssociated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
06/30/150.0102 %528,617$ -$ 528,617$ 601,092$ 87.9 %78.7 %
the Net Pension Payroll of the Total
Liability ((a+b)/c)Pension Liability
Plan Fiduciary
City's
Liability as a
Net Position
Proportion of
Percentage of
as a PercentageCovered
Required Supplementary Information
City's
Proportionate
Share of the
Net Pension
Schedule of employer’s PERA contributions - General Employees Retirement Fund
Contributions in
Relation to the
Statutorily StatutorilyContributionCity's
Required RequiredDeficiencyCovered
Year ContributionContribution (Excess)Payroll
Ending (a)(b)(a-b)(c)
12/31/15 46,319$ 46,319$ -$ 617,587$ 7.5 %
(b/c)
Required Supplementary Information
Contributions as
a Percentage of
Covered Payroll
Schedule of employer’s share of PERA net pension liability - Public Employees Police and Fire Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net PensionAssociated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
06/30/150.0560 %636,191$ -$ 636,191$ 503,609$ 126.3 %86.6 %
Liability ((a+b)/c)Pension Liability
Proportion of Covered as a Percentage
the Net Pension Payroll of the Total
Liability as a Plan Fiduciary
City's Percentage of Net Position
Required Supplementary Information
City's
Proportionate
Share of the
Net Pension
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CITY OF CORCORAN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2015
Schedule of employer’s PERA contributions - Public Employees Police and Fire Fund
Contributions in
Relation to the
StatutorilyStatutorilyContributionCity's
RequiredRequiredDeficiencyCovered
Year ContributionContribution (Excess)Payroll
Ending (a)(b)(a-b)(c)
12/31/15 77,027$ 77,027$ -$ 475,475$ 16.2 %
(b/c)
Required Supplementary Information
Contributions as
a Percentage of
Covered Payroll
Schedule of funding progress for the postemployment benefit plan
Unfunded
Actuarial
Actuarial ActuarialActuarialAccrued
Valuation Value of Accrued Liability Funded Covered
Date Assets Liability (UAAL)Ratio Payroll
01/01/15 -$ 334,574$ 334,574$ - %1,160,842$ 28.8 %
01/01/14 - 307,081 307,081 - 1,118,884 27.4
01/01/13 - 311,079 311,079 - 1,044,470 29.8
UAAL as a
Payroll
of Covered
Percentage
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THIS PAGE IS LEFT BLANK
INTENTIONALLY
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COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF CORCORAN
CORCORAN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
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CITY OF CORCORAN, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2015
Special Capital
Revenue Projects Total
ASSETS
Cash and temporary investments 49,871$ 677,676$ 727,547$
Receivables
Accounts - 14,306 14,306
Special assessments - 21,817 21,817
TOTAL ASSETS 49,871$ 713,799$ 763,670$
LIABILITIES
Due to other funds -$ 16,775$ 16,775$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - special assessments - 21,817 21,817
FUND BALANCES
Restricted 20,562 407,350 427,912
Committed 2,830 - 2,830
Assigned 26,645 284,632 311,277
Unassigned (166) (16,775) (16,941)
TOTAL FUND BALANCE 49,871 675,207 725,078
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 49,871$ 713,799$ 763,670$
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CITY OF CORCORAN, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2015
Special Capital
Revenue Projects Total
REVENUES
Intergovernmental 599$ 12,275$ 12,874$
Charges for services 5,415 3,000 8,415
Special assessments - 3,599 3,599
Interest on investments 57 916 973
Miscellaneous 23,633 36,689 60,322
TOTAL REVENUES 29,704 56,479 86,183
EXPENDITURES
Current
Public safety 17,015 - 17,015
Capital outlay
General government - 3,504 3,504
Public safety 559 85,245 85,804
Public works - 43,361 43,361
Culture and recreation - 37,702 37,702
TOTAL EXPENDITURES 17,574 169,812 187,386
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 12,130 (113,333)(101,203)
OTHER FINANCING SOURCES (USES)
Transfers in - 25,000 25,000
Transfers out - (10,060) (10,060)
Insurance recovery - 37,106 37,106
Sale of capital assets - 1,031 1,031
TOTAL OTHER FINANCING SOURCES (USES)- 53,077 53,077
NET CHANGE IN FUND BALANCES 12,130 (60,256)(48,126)
FUND BALANCES, JANUARY 1 37,741 735,463 773,204
FUND BALANCES, DECEMBER 31 49,871$ 675,207$ 725,078$
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CITY OF CORCORAN, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2015
201 202 204 205
Reserve Police Firearms DWI
Donation Donation Safety Forfeiture
ASSETS
Cash and temporary investments 25,060$ (166)$ 1,585$ 19,390$
FUND BALANCES
Restricted -$ -$ -$ 19,390$
Committed - - - -
Assigned 25,060 - 1,585 -
Unassigned - (166) -
TOTAL FUND BALANCES 25,060 (166) 1,585 19,390
TOTAL LIABILITIES
AND FUND BALANCES 25,060$ (166)$ 1,585$ 19,390$
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206 207
Drug Truck
Forfeiture Safety Total
1,172$ 2,830$ 49,871$
1,172$ -$ 20,562$
- 2,830 2,830
- - 26,645
- - (166)
1,172 2,830 49,871
1,172$ 2,830$ 49,871$
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CITY OF CORCORAN, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2015
201 202 204 205
Reserve Police Firearms DWI
Donation Donation Safety Forfeiture
REVENUES
Intergovernmental -$ 599$ -$ -$
Charges for services 5,415 - - -
Interest on investments 26 - 2 23
Miscellaneous 4,403 - 8,493 6,050
TOTAL REVENUES 9,844 599 8,495 6,073
EXPENDITURES
Current
Public safety 2,458 146 5,984 1,520
Capital outlay
Public safety - 559 - -
TOTAL EXPENDITURES 2,458 705 5,984 1,520
NET CHANGE IN FUND BALANCES 7,386 (106) 2,511 4,553
FUND BALANCES, JANUARY 1 17,674 (60) (926) 14,837
FUND BALANCES, DECEMBER 31 25,060$ (166)$ 1,585$ 19,390$
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206 207
Drug Truck
Forfeiture Safety Total
-$ -$ 599$
- - 5,415
1 5 57
- 4,687 23,633
1 4,692 29,704
- 6,907 17,015
- - 559
- 6,907 17,574
1 (2,215) 12,130
1,171 5,045 37,741
1,172$ 2,830$ 49,871$
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CITY OF CORCORAN, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2015
415 416 417 420
Park Capital Shannon Wetland
Capital Equip-Cert Lane Restoration
ASSETS
Cash and temporary investments 380,576$ 41,447$ -$ 100,192$
Receivables
Accounts - 14,306 - -
Special assessments - - 21,817 -
TOTAL ASSETS 380,576$ 55,753$ 21,817$ 100,192$
LIABILITIES
Due to other funds -$ -$ 16,775$ -$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - special assessments - - 21,817 -
FUND BALANCES
Restricted 284,852 22,306 - 100,192
Assigned 95,724 33,447 - -
Unassigned - - (16,775) -
TOTAL FUND BALANCE 380,576 55,753 (16,775) 100,192
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES 380,576$ 55,753$ 21,817$ 100,192$
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305 310 411 421
Asphalt County Road Public Works
Maintenance 19 Improvement Facility Hope Center Total
71,690$ -$ 83,771$ -$ 677,676$
- - - - 14,306
- - - - 21,817
71,690$ -$ 83,771$ -$ 713,799$
-$ -$ -$ -$ 16,775$
- - - - 21,817
- - - - 407,350
71,690 - 83,771 - 284,632
- - - - (16,775)
71,690 - 83,771 - 675,207
71,690$ -$ 83,771$ -$ 713,799$
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CITY OF CORCORAN, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2015
415 416 417 420
Park Capital Shannon Wetland
Capital Equip-Cert Lane Restoration
REVENUES
Intergovernmental 12,275$ -$ -$ -$
Charges for services 3,000 - - -
Special assessments - - 3,599 -
Interest on investments 478 108 (26) 132
Miscellaneous - - - -
TOTAL REVENUES 15,753 108 3,573 132
EXPENDITURES
Capital outlay
General government - 3,504 - -
Public safety - 85,245 - -
Public works - 39,366 - -
Culture and recreation 1,013 - - -
TOTAL EXPENDITURES 1,013 128,115 - -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 14,740 (128,007) 3,573 132
OTHER FINANCING SOURCES (USES)
Transfers in - 25,000 - -
Transfers out - - - -
Insurance recovery - 37,106 - -
Sale of capital assets - 1,031 - -
TOTAL OTHER
FINANCING SOURCES (USES)- 63,137 - -
NET CHANGE IN FUND BALANCES 14,740 (64,870) 3,573 132
FUND BALANCES, JANUARY 1 365,836 120,623 (20,348) 100,060
FUND BALANCES, DECEMBER 31 380,576$ 55,753$ (16,775)$ 100,192$
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305 310 411 421
Asphalt County Road Public Works
Maintenance 19 Improvement Facility Hope Center Total
-$ -$ -$ -$ 12,275$
- - - - 3,000
- - - - 3,599
95 14 115 - 916
- - - 36,689 36,689
95 14 115 36,689 56,479
- - - - 3,504
- - - - 85,245
- - 3,995 - 43,361
- - - 36,689 37,702
- - 3,995 36,689 169,812
95 14 (3,880) - (113,333)
- - - - 25,000
- (10,060) - - (10,060)
- - - - 37,106
- - - - 1,031
- (10,060) - - 53,077
95 (10,046) (3,880) - (60,256)
71,595 10,046 87,651 - 735,463
71,690$ -$ 83,771$ -$ 675,207$
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CITY OF CORCORAN, MINNESOTA
GENERAL FUND
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - CONTINUED ON THE FOLLOWING PAGES
FOR THE YEAR ENDED DECEMBER 31, 2015
(With comparative actual amounts for the year ended December 31, 2014)
2014
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
REVENUES
Taxes
General property taxes 2,873,144$ 2,873,144$ 2,876,181$ 3,037$ 2,776,339$
Cable franchise fees 40,000 40,000 42,979 2,979 40,321
Total 2,913,144 2,913,144 2,919,160 6,016 2,816,660
Licenses and permits
Business 18,250 18,250 18,500 250 18,270
Nonbusiness 193,000 193,000 301,660 108,660 114,137
Total 211,250 211,250 320,160 108,910 132,407
Intergovernmental
Federal
FEMA - - 2,613 2,613 -
State
Local government aid - - 10,908 10,908 7,058
Agricultural market value credit - - 2,129 2,129 -
Property tax credits 19,605 19,605 19,605 - 11,405
PERA aid 1,845 1,845 1,845 - 1,845
Police state aid 48,700 48,700 58,830 10,130 57,174
State aid for streets 120,000 120,000 136,138 16,138 130,468
Other 37,302 37,302 38,316 1,014 37,302
County
Recycling 14,500 14,500 16,840 2,340 14,845
Other 7,500 7,500 9,047 1,547 12,842
Total 249,452 249,452 296,271 46,819 272,939
Charges for services
General government 19,200 19,200 23,772 4,572 32,799
Public safety 10,500 10,500 13,726 3,226 12,924
Streets and highways 58,530 58,530 65,170 6,640 56,127
Recycling 62,675 62,675 59,645 (3,030) 61,980
Total 150,905 150,905 162,313 11,408 163,830
Fines and forfeitures 60,000 60,000 41,988 (18,012) 42,278
Special assessments - - - - 20,295
Interest on investments 2,000 2,000 1,036 (964) 431
Miscellaneous
Contributions and donations 1,000 1,000 6,597 5,597 2,151
Other 22,340 22,340 39,182 16,842 34,582
Total 23,340 23,340 45,779 22,439 36,733
TOTAL REVENUES 3,610,091 3,610,091 3,786,707 176,616 3,485,573
Budgeted Amounts
2015
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2014
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
EXPENDITURES
Current
General government
City Council
Personal services 7,105$ 7,105$ 7,105$ -$ 7,105$
Supplies 1,000 1,000 315 685 -
Other services and charges 104 104 66 38 54
Total 8,209 8,209 7,486 723 7,159
Newspaper/newsletter
Other services and charges 5,450 5,450 6,502 (1,052) 5,033
Administrator
Personal services 122,323 122,323 124,106 (1,783) 123,756
Supplies 4,700 4,700 4,448 252 4,886
Other services and charges 1,603 1,603 2,258 (655) 589
Total 128,626 128,626 130,812 (2,186) 129,231
Clerk
Personal services 170,193 170,193 203,227 (33,034) 169,677
Supplies 3,000 3,000 276 2,724 711
Other services and charges 1,494 1,494 1,379 115 989
Total 174,687 174,687 204,882 (30,195) 171,377
Elections
Supplies 1,500 1,500 154 1,346 8,733
Auditor/treasurer
Other services and charges 26,000 26,000 23,962 2,038 26,750
Assessor
Supplies 1,000 1,000 1,112 (112) 882
Other services and charges 55,956 55,956 56,099 (143) 53,708
Total 56,956 56,956 57,211 (255) 54,590
Legal services
Other services and charges 31,000 31,000 18,541 12,459 16,527
Planning administration
Supplies 1,000 1,000 612 388 3,360
Other services and charges 50,000 50,000 60,587 (10,587) 44,725
Total 51,000 51,000 61,199 (10,199) 48,085
Information technology
Supplies 24,257 24,257 25,387 (1,130) 13,171
Other services and charges 19,600 19,600 29,395 (9,795) 7,198
Total 43,857 43,857 54,782 (10,925) 20,369
GENERAL FUND
CITY OF CORCORAN, MINNESOTA
Budgeted Amounts
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2015
2015
(With comparative actual amounts for the year ended December 31, 2014)
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2014
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
GENERAL FUND
CITY OF CORCORAN, MINNESOTA
Budgeted Amounts
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2015
2015
(With comparative actual amounts for the year ended December 31, 2014)
EXPENDITURES - CONTINUED
Current - continued
General government - continued
Code enforcement
Personal services 78,647$ 78,647$ 69,617$ 9,030$ 65,850$
Supplies 1,750 1,750 1,549 201 1,175
Other services and charges 767 767 756 11 727
Total 81,164 81,164 71,922 9,242 67,752
City center
Supplies 24,000 24,000 20,325 3,675 19,498
Other services and charges 46,525 46,525 41,503 5,022 38,060
Total 70,525 70,525 61,828 8,697 57,558
Other general government
Supplies 3,000 3,000 3,032 (32) 2,723
Other services and charges 101,400 101,400 101,016 384 108,384
Total 104,400 104,400 104,048 352 111,107
Total general government 783,374 783,374 803,329 (19,955) 724,271
Public safety
Police
Personal services 933,522 933,522 885,042 48,480 872,629
Supplies 72,350 72,350 65,802 6,548 54,321
Other services and charges 99,926 99,926 92,113 7,813 82,623
Total 1,105,798 1,105,798 1,042,957 62,841 1,009,573
Fire
Other services and charges 275,895 275,895 274,694 1,201 240,222
Building inspection
Other services and charges 85,000 85,000 76,758 8,242 110,949
Total public safety 1,466,693 1,466,693 1,394,409 72,284 1,360,744
Public works
Streets and highways
Personal services 427,499 427,499 396,400 31,099 426,471
Supplies 496,000 496,000 486,216 9,784 482,685
Other services and charges 134,464 134,464 154,486 (20,022) 114,040
Total 1,057,963 1,057,963 1,037,102 20,861 1,023,196
Snow and ice removal
Supplies 30,000 30,000 28,283 1,717 32,904
Engineering
Other services and charges 45,000 45,000 41,380 3,620 41,751
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2014
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
GENERAL FUND
CITY OF CORCORAN, MINNESOTA
Budgeted Amounts
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2015
2015
(With comparative actual amounts for the year ended December 31, 2014)
EXPENDITURES - CONTINUED
Current - continued
Public works - continued
Recycling
Supplies 1,000$ 1,000$ 3,033$ (2,033)$ 1,025$
Other services and charges 69,000 69,000 74,040 (5,040) 69,722
Total 70,000 70,000 77,073 (7,073) 70,747
Total public works 1,202,963 1,202,963 1,183,838 19,125 1,168,598
Culture and recreation
Parks
Personal services 39,602 39,602 26,057 13,545 25,739
Supplies 30,000 30,000 29,418 582 21,542
Other services and charges 10,657 10,657 8,028 2,629 8,213
Total culture and recreation 80,259 80,259 63,503 16,756 55,494
Total current expenditures 3,533,289 3,533,289 3,445,079 88,210 3,309,107
Capital outlay
General government - - - - 3,451
Public works 4,500 4,500 6,622 (2,122) 6,337
Culture and recreation 37,302 37,302 38,316 (1,014) 37,302
Total capital outlay 41,802 41,802 44,938 (3,136) 47,090
TOTAL EXPENDITURES 3,575,091 3,575,091 3,490,017 85,074 3,356,197
EXCESS OF REVENUES
OVER EXPENDITURES 35,000 35,000 296,690 261,690 129,376
OTHER FINANCING USES
Transfers out (35,000) (35,000) (25,000) 10,000 (244,278)
NET CHANGE IN FUND BALANCES - - 292,895 292,895 (114,902)
FUND BALANCES, JANUARY 1 1,117,761 1,117,761 1,117,761 - 1,232,663
FUND BALANCES, DECEMBER 31 1,117,761$ 1,117,761$ 1,410,656$ 292,895$ 1,117,761$
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CITY OF CORCORAN, MINNESOTA
NONMAJOR DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2015
309 311 407
G.O.
Equipment 2012 Public Facility
Certificates Works Bond Expansion Total
ASSETS
Cash and temporary investments 85,548$ 80,229$ -$ 165,777$
FUND BALANCES
Restricted 85,548$ 80,229$ -$ 165,777$
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CITY OF CORCORAN, MINNESOTA
NONMAJOR DEBT SERVICE FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2015
309 311 407
G.O.
Equipment 2012 Public Facility
Certificates Works Bond Expansion Total
REVENUES
Taxes 273,853$ 145,412$ 21,462$ 440,727$
Interest on investments 20 11 (4) 27
TOTAL REVENUES 273,873 145,423 21,458 440,754
EXPENDITURES
Debt service
Principal 219,000 40,000 20,000 279,000
Interest and other charges 41,811 98,488 440 140,739
TOTAL EXPENDITURES 260,811 138,488 20,440 419,739
EXCESS OF REVENUES
OVER EXPENDITURES 13,062 6,935 1,018 21,015
OTHER FINANCING USES
Transfers out - - (11,145) (11,145)
NET CHANGE IN FUND BALANCES 13,062 6,935 (10,127) 9,870
FUND BALANCES, JANUARY 1 72,486 73,294 10,127 155,907
FUND BALANCES, DECEMBER 31 85,548$ 80,229$ -$ 165,777$
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CITY OF CORCORAN, MINNESOTA
FIDUCIARY FUNDS
COMBINING SCHEDULE OF NET POSITION
DECEMBER 31, 2015
500 501
Lions and
Escrow Jaycees Total
ASSETS
Cash and temporary investments 435,787$ 6,000$ 441,787$
Accounts receivable
Beacon Academy-Planning 1,952 - 1,952
Lawn King Street Vacation 47 - 47
Verizon Monopole 247 - 247
Spanier Accessory Addition 251 - 251
Total accounts receivable 2,497 - 2,497
TOTAL ASSETS 438,284$ 6,000$ 444,284$
Agency
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CITY OF CORCORAN, MINNESOTA
FIDUCIARY FUNDS
COMBINING SCHEDULE OF NET POSITION - CONTINUED
DECEMBER 31, 2015
500 501
Lions and
Escrow Jaycees Total
LIABILITIES
Accounts payable 24,826$ 6,000$ 30,826$
Deposits payable
Tim Kreps 43 - 43
Funfar CUP 603 - 603
Lano Equipment 382 - 382
Lennar Design 157,992 - 157,992
Lennar - Storm water Design 14,767 - 14,767
Lennar CSAH 101 Turn Lanes 19,309 - 19,309
Ess Site Plan 425 - 425
Sprint-SBA Communication 542 - 542
CSAH 101 Traffic Signal 100,000 - 100,000
Fox Ridge 2nd 457 - 457
Hope Ministries 940 - 940
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 8,146 - 8,146
Lennar Eng Plan Review/Modific 40,855 - 40,855
Tombers Prelim/Final Plat 4,391 - 4,391
Lennar Ravinia 2nd Addition 6,031 - 6,031
United Properties 32,697 - 32,697
Lennar PUD Amendment 2,000 - 2,000
Sunram Grading 450 - 450
Lennar - Phase 3 4,158 - 4,158
TMR Properties 3,160 - 3,160
Park Place Storage 441 - 441
Brian Peterson 39 - 39
Sunram Grading 300 - 300
Richard/Judy Fehn 242 - 242
Ravinia Phase 3 Vacation 230 - 230
Tim Kreps Grading 4,539 - 4,539
Strehler Estates - Final Plat 4,825 - 4,825
Total deposits payable 413,458 - 413,458
TOTAL LIABILITIES 438,284$ 6,000$ 444,284$
Agency
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CITY OF CORCORAN, MINNESOTA
SUMMARY FINANCIAL REPORT
REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS
GOVERNMENTAL FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
2015 2014
REVENUES
Taxes 3,359,887$ 3,180,080$ 5.65 %
Licenses and permits 320,160 132,407 141.80
Intergovernmental 309,145 713,545 (56.67)
Charges for services 740,728 555,470 33.35
Fines and forfeitures 41,988 42,278 (0.69)
Special assessments 3,599 27,010 (86.68)
Interest on investments 5,019 2,379 110.97
Miscellaneous 106,101 145,117 (26.89)
TOTAL REVENUES 4,886,627$ 4,798,286$ 1.84 %
Per Capita 886$ 877$ 1.06 %
EXPENDITURES
Current
General government 803,329$ 724,271$ 10.92 %
Public safety 1,411,424 1,377,603 2.46
Public works 1,183,838 1,168,598 1.30
Culture and recreation 63,503 55,494 14.43
Capital outlay
General government 3,504 5,414 (35.28)
Public safety 85,804 98,787 (13.14)
Public works 166,252 702,055 (76.32)
Culture and recreation 76,018 356,220 (78.66)
Debt service
Principal 279,000 214,000 30.37
Interest and other charges 140,739 132,114 6.53
Bond issuance costs - 17,810 (100.00)
TOTAL EXPENDITURES 4,213,411$ 4,852,366$ (13.17) %
Per Capita 764$ 887$ (13.83) %
Total Long-term Indebtedness 5,116,000$ 5,395,000$ (5.17) %
Per Capita 928 986 (5.89)
General Fund Balance - December 31 1,410,656$ 1,117,761$ 26.20 %
Per Capita 256 204 25.24
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 may be 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.
Percent
Total Increase
(Decrease)
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OTHER REPORT
CITY OF CORCORAN
CORCORAN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
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THIS PAGE IS LEFT BLANK
INTENTIONALLY
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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, 2015, and the related notes to the financial statements, and
have issued our report thereon dated May 2, 2016.
The Minnesota Legal Compliance Audit Guide for Cities, 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 Cities. However, our audit was not directed primarily toward procedures, other
matters may have come to our attention regarding the City’s noncompliance with the above referenced provisions. 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
May 2, 2016
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City of Corcoran
Corcoran, Minnesota
For the Year Ended
December 31, 2015
Management Letter
May 2, 2016
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, 2015. 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 December 8, 2015. 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 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.
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 City’s financial statements will not be prevented, or detected and corrected on a timely basis. 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.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section 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. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control
that we consider to be a significant deficiency as described on the following page as finding 2015-001.
-1-
2015-001 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 financial 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-
Compliance
As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we
performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with
which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. 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. As a result of our testing we noted no instances of noncompliance or other matters that are required to be reported under
statutes set forth by the State of Minnesota.
Summary of prior year findings
2015-001 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.
Current year status:
Management implemented procedures to ensure complete reconciliations of accounts, including journal entries to adjust
balances to these reconciliations were completed prior to the start of the audit. No similar adjustments were completed in
2015 and the finding was removed.
-3-
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. As described in Note 7 to the financial statements, the City changed
accounting policies related to accounting and financial reporting for pensions by adopting Statement of Governmental Accounting
Standards (GASB) Statements No. 68 and 71 in 2015. Accordingly, the cumulative effect of the accounting change as of the beginning
of the year is disclosed in Note 7. 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, allocation of payroll including compensated absences and other postemployment benefits, and the liability for the City’s
pensions.
• 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.
• Management’s estimate of its pension liability is based on several factors including, but not limited to, anticipated investment
return rate, retirement age for active employees, life expectancy, salary increases and form of annuity payment upon
retirement.
o The allocation of the pension liability related to Minnesota Public Employee Retirement Association (PERA) is
based on the City’s proportionate share of employer contributions to the PERA cost-sharing multiple employer
Coordinated pension plan.
We evaluated the key factors and assumptions used to develop these estimates in determining that they are 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. In
addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either
individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
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
May 2, 2016.
-4-
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 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.
Other Matters
We applied certain limited procedures to the required supplementary information (RSI) (Management’s Discussion and Analysis, the
Schedules of Employer’s Share of the Net Pension Liability, the Schedules of Employer’s Contributions, and the Schedule of Funding
Progress for Other Post-Employment Benefits Plan), which is information that supplements the basic financial statements. Our
procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the
RSI.
We were engaged to report on the supplementary information (combining and individual fund financial statements), which accompany
the financial statements but are not RSI. With respect to this supplementary information, 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.
We were not engaged to report on the introductory section, which accompany the financial statements but is not RSI. We did not audit
or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.
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, 2015.
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 increased $292,895 from 2014. The
unrestricted fund balance of $1,393,881 is 36.7 percent of the 2016 budgeted expenditures.
We recommend the fund balance be maintained at a level sufficient to fund operations until the major revenue sources are
received in June. The City has a fund balance policy that sets a goal to maintain an unrestricted balance of not less than 35 percent
of planned expenditures in reserve. At the current level, the fund balance is above the targeted level.
The purposes and benefits of a fund balance are as follows:
• Expenditures are incurred somewhat evenly throughout the year. However, property tax and state aid revenues are not
received until the second half of the year. An adequate fund balance will provide the cash flow required to finance the
governmental fund expenditures.
• Expenditures not anticipated at the time the annual budget was adopted may need immediate City
Council action. These would include capital outlay, replacement, lawsuits and other items. An
adequate fund balance will provide the financing needed for such expenditures.
• A strong fund balance will assist the City in maintaining, improving or obtaining its bond rating. The
result will be better interest rates in future bond sales.
-5-
A table summarizing the General fund balance in relation to budget follows:
TotalUnrestricted General
Fund Balance Fund Balance BudgetFund
Year December 31December 31 Year Budget
2011 749,070$ 471,772$ 20123,152,256$ 23.8 %15.0 %
2012 942,753 668,338 20133,175,544 29.7 21.0
2013 1,232,663 961,389 20143,326,938 37.1 28.9
2014 1,117,761 1,085,355 20153,610,091 31.0 30.1
2015 1,410,656 1,393,881 20163,795,013 37.2 36.7
Percent
of Total
Fund Balance
to Budget
Percent
of Unrestricted
Fund Balance
to Budget
Fund Balance as a Percent of Next Year’s Budget
23.8%29.7%
37.1%31.0%37.2%
15.0%21.0%
28.9%30.1%36.7%
$3,152,256 $3,175,544 $3,326,938
$3,610,091 $3,795,013
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2011 2012 2013 2014 2015 2016
Total Fund Balance Unrestricted Fund Balance Budget
-6-
A summary of 2015 General fund revenue and expenditures is as follows:
Final
Budgeted Actual Variance with
AmountsAmounts Final Budget
Revenues 3,610,091$ 3,786,707$ 176,616$
Expenditures 3,575,091 3,490,017 85,074
Excess of revenues
over expenditures 35,000 296,690 261,690
Other financing uses
Transfers out (35,000) (25,000) 10,000
Net change in fund balances - 292,895 292,895
Fund balances, January 1 1,117,761 1,117,761 -
Fund balances, December 31 1,117,761$ 1,410,656$ 292,895$
• Revenues provided a positive budget variance of $176,616. The largest positive variances were in licenses and permits
and intergovernmental which were $108,910 and $46,819 over budget, respectively.
• Expenditures resulted in a positive budget variance of $85,074. The most significant variance was in public safety with a
positive variance of $72,284 due to less than expected expenditures in personal services.
-7-
A more detailed comparison of General fund revenues for the last three years is as follows:
Per
2013 2014 2015 Capita
Taxes 2,627,327$ 2,816,660$ 2,919,160$ 76.6 %530$
Licenses and permits 159,524 132,407 320,160 8.4 58
Intergovernmental 373,000 272,939 296,271 7.8 54
Charges for services 199,184 163,830 162,313 4.3 29
Fines and forfeitures 58,194 42,278 41,988 1.1 8
Special assessments - 20,295 - - -
Interest on investments 1,026 431 1,036 - -
Miscellaneous 47,602 36,733 45,779 1.2 8
Total revenues 3,465,857$ 3,485,573$ 3,807,912$ 100.0 %691$
Revenues Total
Percent of
The revenues and transfers summarized above are graphically presented as follows:
Revenues
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2013 2014 2015
Taxes Licenses and permits Intergovernmental Charges for services Other
-8-
A more detailed comparison of expenditures and transfers for the last three years is as follows:
Peer
Per Group Per
2013 2014 2015 CapitaCapita
General government 749,029$ 724,271$ 803,329$ 22.9 %146$ 130$
Public safety 1,285,746 1,360,744 1,394,409 39.7 253 231
Public works 1,031,550 1,168,598 1,183,838 33.7 215 120
Culture and recreation 73,133 55,494 63,503 1.8 12 58
Total current 3,139,458 3,309,107 3,445,079 98.1 626 539
Capital outlay 36,489 47,090 44,938 1.2 8 32
Transfers out - 244,278 25,000 0.7 5 -
Total expenditures
and transfers 3,175,947$ 3,600,475$ 3,515,017$ 100.0 %639$ 571$
Programs Total
Percent of
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 4th class cities with populations between
2,500 and 10,000.
The expenditures and transfers summarized above are graphically presented as follows:
Expenditures and Transfers
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2013 2014 2015
General government Public safety Public works Transfers out and other Total
-9-
Special Revenue Funds
Special revenue funds include funds used to account for revenue derived from specific revenue sources that are restricted or
committed to expenditure for specified purposes. The fund balances of each special revenue fund are as follows:
Increase
2015 2014 (Decrease)
Nonmajor
Reserve Donation 25,060$ 17,674$ 7,386$
Police Donation (166) (60) (106)
Firearms Safety 1,585 (926) 2,511
DWI Forfeiture 19,390 14,837 4,553
Drug Forfeiture 1,172 1,171 1
Truck Safety 2,830 5,045 (2,215)
Total 49,871$ 37,741$ 12,130$
December 31,
Fund
Fund Balances
Debt Service Funds
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:
Final
Cash Total Outstanding Maturity
Balances Assets Debt Date
309 G.O. Equipment Certificates 85,548$ 85,548$ 1,156,000$ 2017/2024
311 2012 Public Works Bond 80,229 80,229 3,960,000 2038
407 Facility Expansion - - - 2015
Total 165,777$ 165,777$ 5,116,000$
Total remaining interest payments 1,539,696$
Debt Description
December 31, 2015
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. The Facility Expansion fund was closed in 2015 with a
transfer out to the General fund, and is assigned in the General fund for long range planning.
-10-
Debt Service Scheduled Principal and Interest for the Next 10 Years
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Principal Interest
Capital Projects Funds
The capital projects funds account for the acquisition and construction of capital assets. A summary of each fund follows:
Increase
2015 2014 (Decrease)
Major
Tax Increment Financing 1,683,210$ 1,797,122$ (113,912)$
Hackamore Upgrade 855,797 285,171 570,626
Subtotal 2,539,007 2,082,293 456,714
Nonmajor
Park Capital 380,576 365,836 14,740
Capital Equip-Cert 55,753 120,623 (64,870)
Shannon Lane (16,775) (20,348) 3,573
Wetland Restoration 100,192 100,060 132
Asphalt Maintenance 71,690 71,595 95
County Road 19 Improvement - 10,046 (10,046)
Public Works Facility 83,771 87,651 (3,880)
Subtotal 675,207 735,463 (60,256)
Total 3,214,214$ 2,817,756$ 396,458$
Fund Balances
December 31,
Fund
The decrease in the Tax Increment Financing fund was related to planning and engineering for the Downtown Redevelopment
project. The increase in the Hackamore Upgrade project was related to developer contributions and the fund balance of $855,797
will be used for future project costs under the development agreement. The City evaluated available cash in the Shannon Lane
fund and paid down $10,258 of the interfund loan due to the General fund. The County Road 19 Improvement fund was closed in
2015 with a transfer out to the General fund, and is assigned in the General fund for long range planning. The City should
continue to evaluate and ensure its current position of each fund is consistent with the financing plans in place.
-11-
Enterprise Funds
The Water and Sewer enterprise funds were created in 2013 and are accounted for in separate enterprise funds. Enterprise funds are
used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that
the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user
charges. The results of the operations and the breakdown of the cash balances for the past two years are as follows:
Water Operations
2013 2014
Operating revenues -$ -$ 14,069$
Operating expenses (41,561) (300,717) (55,408)
Depreciation (15,613) (31,140) (54,619)
Operating loss (57,174) (331,857) (95,958)
Nonoperating expenses (17) (54,146) 1,541
Interest expense - (15,811) (52,595)
Loss before contributions
and transfers (57,191) (401,814) (147,012)
Contributed assets 934,201 - -
Capital contributions - connections and developer - 643,457 360,077
Transfers out - (125,887) -
Change in fund net position 877,010$ 115,756$ 213,065$
Cash and temporary investments (33,346)$ 1,448,283$ 1,200,107$
Bonds and notes payable, net -$ 2,080,728$ 1,668,289$
2015
Water Cash Balances
$(33,346)
$1,448,283
$1,200,107
$(200,000)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
2013 2014 2015
Unrestricted Unspent bond proceeds
Some of the significant highlights include:
• 2015 activity in the Water fund resulted in $14,069 of revenue, which was the first partial year of billing.
• Connection fees of $210,007 and developer contributions of $150,000 were received in 2015.
• $337,397 of the total cash of $1,200,107 is restricted unspent bond proceeds.
As operations of the Water fund increase it will be important to monitor rates to ensure all operating, capital,
and debt service expenses are covered.
-12-
Sewer Operations
2013 2014 2015
Operating revenues -$ -$ 4,415$
Operating expenses (26,732) (543) (31,453)
Depreciation (17,606) (35,115) (70,774)
Operating loss (44,338) (35,658) (97,812)
Nonoperating expenses (9) (42,030) (55,277)
Loss before contributions
and transfers (44,347) (77,688) (153,089)
Contributed assets 1,053,460 - -
Capital contributions - connections - 93,850 80,996
Transfers out - (125,887) -
Change in fund net position 1,009,113$ (109,725)$ (72,093)$
Cash and temporary investments (18,427)$ 744,980$ 529,206$
Bonds payable, net -$ 1,375,227$ 1,701,430$
Sewer Cash Balances
$(18,427)
$744,980
$529,206
$(100,000)
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
2013 2014 2015
Unrestricted Unspent bond proceeds
Some of the significant highlights include:
• 2015 activity in the Sewer fund resulted in $4,415 of revenue, which was the first partial year of billing.
• Connection fees of $80,996 were received in 2015.
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.
Developer Agency Accounts
In total, the City is maintaining $441,787 in cash in its developer funds. In addition to this balance the City is
owed an additional $2,497 by accounts that are in deficit, which is current and related to timing of services
provided and related escrow deposits near year end. In 2015, the City used $39,442 of the increase in the
General fund to eliminate the long outstanding developer receivable. City staff have appropriate procedures in
place to monitor all current escrows and ensure that funds are collected in advance to cover the planning, legal,
and engineering expenses.
-13-
Ratio Analysis
The following captures a few ratios from the City’s financial statements that give some additional information for trend and peer
group analysis. The peer group average is derived from information we have requested from the Office of the State Auditor for Cities
of the 4th class which have populations between 2,500 and 10,000. In comparison to the peer group, it is important to remember the
uniqueness of the City and it is really only comparable in size to the other Cities. The majority of these ratios facilitate the use of
economic resources focus and accrual basis of accounting at the government-wide level. A combination of solvency (ability to pay its
long-term obligations) and funding (comparison of financial amounts and economic indicators to measure changes in financial
capacity over time) ratios are shown below.
Source 2012201320142015
Debt to assets Total liabilities/total assets Government-wide 42% 43% 52% 54%
33% 32% 32% N/A
Debt per capita Bonded debt/population Government-wide 1,023$ 945$ 1,618$ 1,555$
2,626$ 2,656$ 2,506$ N/A
Taxes per capita Tax revenues/population Government-wide 566$ 595$ 581$ 608$
480$ 487$ 484$ N/A
Current expenditures per capita Governmental fund currentGovernmental funds 562$ 577$ 608$ 628$
expenditures/population 649$ 634$ 674$ N/A
Capital expenditures per capita Governmental fund capital Governmental funds 502$ 672$ 212$ 60$
expenditures/population 298$ 294$ 320$ N/A
Capital assets % left to Net capital assets/Government-wide 74% 74% 73% 70%
depreciate - Governmentalgross capital assets 65% 64% 63% N/A
Capital assets % left to Net capital assets/Government-wide n/a 98% 98% 95%
depreciate - Business-typegross capital assets 63% 63% 61% N/A
Represents the City of Corcoran
Represents Peer Group Average
Ratio Calculation
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
is generally based on ongoing expenditures, we would expect consistent annual per capita results.
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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
City Multi-Year
Financial
Management
Actual Plan Report Variance
Governmental Funds - Fund Balances
General Fund 1,410,656$ 1,128,669$ 281,987$
Tax Increment Financing 1,683,210 1,593,122 90,088
Hackamore Upgrade 855,797 - 855,797
Debt Service Funds 165,777 176,895 (11,118)
Special Revenue Funds 49,871 39,741 10,130
Capital Project Funds 675,207 931,134 (255,927)
Total governmental 4,840,518 3,869,561 970,957
Proprietary Funds - Net Position
Water 1,205,831$ N/A N/A
Sewer 827,295 N/A N/A
Total 6,873,644$ 3,869,561$ 970,957$
City Multi-Year
Financial
Management
Actual Plan Report Variance
Governmental Funds
General Fund 1,517,024$ 1,214,879$ 302,145$
Tax Increment Financing 1,747,553 1,602,477 145,076
Hackamore Upgrade 855,797 - 855,797
Debt Service Funds 165,777 176,895 (11,118)
Special Revenue Funds 49,871 40,304 9,567
Capital Project Funds 677,676 975,190 (297,514)
Total governmental 5,013,698 4,009,745 1,003,953
Proprietary Funds
Water 1,200,107$ 1,598,606$ (398,499)
Sewer 529,206 794,014 (264,808)
Total 6,743,011$ 6,402,365$ 340,646$
Cash Balances
Fund Balances/Net Position
Starting in 2012 and updated in 2015, the City created and approved a multi-year financial management plan report
adopted by the City Council. 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 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.
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Future Accounting Standard Changes
The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future
the City financial statements: (1)
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.
Effective Date and Transition
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.
GASB Statement No. 73 - Accounting and financial reporting for pension and related assets that are not within the scope of
GASB Statement No. 68, and amendments to certain provisions of GASB Statements No. 67 and No. 68
Summary
The objective of this Statement is to improve the usefulness of information about pensions included in the general purpose
external financial reports of state and local governments for making decisions and assessing accountability. This Statement results
from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all
postemployment benefits with regard to providing decision-useful information, supporting assessments of accountability and
interperiod equity, and creating additional transparency.
This Statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68,
Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing those pensions.
In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement 68. It also
amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement 68 for pension plans and
pensions that are within their respective scopes.
The requirements of this Statement extend the approach to accounting and financial reporting established in Statement 68 to all
pensions, with modifications as necessary to reflect that for accounting and financial reporting purposes, any assets accumulated
for pensions that are provided through pension plans that are not administered through trusts that meet the criteria specified in
Statement 68 should not be considered pension plan assets. It also requires that information similar to that required by Statement
68 be included in notes to financial statements and required supplementary information by all similarly situated employers and
nonemployer contributing entities.
This Statement also clarifies the application of certain provisions of Statements 67 and 68 with regard to the following issues:
1. Information that is required to be presented as notes to the 10-year schedules of required supplementary information
about investment-related factors that significantly affect trends in the amounts reported.
2. Accounting and financial reporting for separately financed specific liabilities of individual employers
and nonemployer contributing entities for defined benefit pensions.
3. Timing of employer recognition of revenue for the support of nonemployer contributing entities not in
a special funding situation.
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Future Accounting Standard Changes - Continued
Effective Date and Transition
The requirements of this Statement that address accounting and financial reporting by employers and governmental nonemployer
contributing entities for pensions that are not within the scope of Statement 68 are effective for financial statements for fiscal
years beginning after June 15, 2016, and the requirements of this Statement that address financial reporting for assets accumulated
for purposes of providing those pensions are effective for fiscal years beginning after June 15, 2015. The requirements of this
Statement for pension plans that are within the scope of Statement 67 or for pensions that are within the scope of Statement 68 are
effective for fiscal years 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 improve financial reporting by establishing a single framework for the presentation of
information about pensions, which will enhance the comparability of pension-related information reported by employers and
nonemployer contributing entities.
GASB Statement No. 74 - Financial Reporting for Postemployment Benefit Plans Other than Pension Plans
Summary
The objective of this Statement is to improve the usefulness of information about postemployment benefits other than pensions
(other postemployment benefits or OPEB) included in the general purpose external financial reports of state and local
governmental OPEB plans for making decisions and assessing accountability. This Statement results from a comprehensive
review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits (pensions
and OPEB) with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity,
and creating additional transparency.
This Statement replaces Statements No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as
amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. It also includes
requirements for defined contribution OPEB plans that replace the requirements for those OPEB plans in Statement No. 25,
Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, as amended,
Statement 43, and Statement No. 50, Pension Disclosures.
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, establishes new
accounting and financial reporting requirements for governments whose employees are provided with OPEB, as well as for
certain nonemployer governments that have a legal obligation to provide financial support for OPEB provided to the employees
of other entities.
The scope of this Statement includes OPEB plans-defined benefit and defined contribution-administered through trusts that meet
the following criteria:
• Contributions from employers and nonemployer contributing entities to the OPEB plan and earnings on those
contributions are irrevocable.
• OPEB plan assets are dedicated to providing OPEB to plan members in accordance with the benefit terms.
• OPEB plan assets are legally protected from the creditors of employers, nonemployer contributing entities, and the
OPEB plan administrator. If the plan is a defined benefit OPEB plan, plan assets also are legally protected from creditors
of the plan members.
This Statement also includes requirements to address financial reporting for assets accumulated for purposes of providing defined
benefit OPEB through OPEB plans that are not administered through trusts that meet the specified criteria.
Effective Date and Transition
This Statement is effective for financial statements for fiscal years beginning after June 15, 2016. Earlier
application is encouraged.
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Future Accounting Standard Changes - Continued
How the Changes in This Statement Will Improve Financial Reporting
The requirements of this Statement will improve financial reporting primarily through enhanced note disclosures and schedules of
required supplementary information that will be presented by OPEB plans that are administered through trusts that meet the
specified criteria. The new information will enhance the decision-usefulness of the financial reports of those OPEB plans, their
value for assessing accountability, and their transparency by providing information about measures of net OPEB liabilities and
explanations of how and why those liabilities changed from year to year. The net OPEB liability information, including ratios,
will offer an up-to-date indication of the extent to which the total OPEB liability is covered by the fiduciary net position of the
OPEB plan. The comparability of the reported information for similar types of OPEB plans will be improved by the changes
related to the attribution method used to determine the total OPEB liability. The contribution schedule will provide measures to
evaluate decisions related to the assessment of contribution rates in comparison with actuarially determined rates, if such rates are
determined. In addition, new information about rates of return on OPEB plan investments will inform financial report users about
the effects of market conditions on the OPEB plan’s assets over time and provide information for users to assess the relative
success of the OPEB plan’s investment strategy and the relative contribution that investment earnings provide to the OPEB plan’s
ability to pay benefits to plan members when they come due.
GASB Statement No. 75 - Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pension
Summary
The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for
postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided
by state and local governmental employers about financial support for OPEB 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 all
postemployment benefits (pensions and OPEB) with regard to providing decision-useful information, supporting assessments of
accountability and interperiod equity, and creating additional transparency.
This Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits Other than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent
Multiple-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other than
Pension Plans, establishes new accounting and financial reporting requirements for OPEB plans.
The scope of this Statement addresses accounting and financial reporting for OPEB that is provided to the employees of state and
local governmental employers. This Statement establishes standards for recognizing and measuring liabilities, deferred outflows
of resources, deferred inflows of resources, and expense/expenditures. For defined benefit OPEB, this Statement identifies the
methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their
actuarial present value, and attribute that present value to periods of employee service. Note disclosure and required
supplementary information requirements about defined benefit OPEB also are addressed.
In addition, this Statement details the recognition and disclosure requirements for employers with payables to defined benefit
OPEB plans that are administered through trusts that meet the specified criteria and for employers whose employees are provided
with defined contribution OPEB. This Statement also addresses certain circumstances in which a nonemployer entity provides
financial support for OPEB of employees of another entity.
In this Statement, distinctions are made regarding the particular requirements depending upon whether the OPEB plans through
which the benefits are provided are administered through trusts that meet the following criteria:
• Contributions from employers and nonemployer contributing entities to the OPEB plan and earnings on those
contributions are irrevocable.
• OPEB plan assets are dedicated to providing OPEB to plan members in accordance with the benefit terms.
• OPEB plan assets are legally protected from the creditors of employers, nonemployer contributing entities, the OPEB
plan administrator, and the plan members.
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Future Accounting Standard Changes - Continued
Effective Date
This Statement is effective for fiscal years beginning after June 15, 2017. 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 OPEB liability and a more comprehensive measure of OPEB expense. Decision-usefulness and
accountability also will be enhanced through new note disclosures and required supplementary information, as follows:
• More robust disclosures of assumptions will allow for better informed assessments of the reasonableness of OPEB
measurements.
• Explanations of how and why the OPEB liability changed from year to year will improve transparency.
• The summary OPEB liability information, including ratios, will offer an indication of the extent to which the total OPEB
liability is covered by resources held by the OPEB plan, if any.
• For employers that provide benefits through OPEB plans that are administered through trusts that meet the specified
criteria, the contribution schedules will provide measures to evaluate decisions related to contributions.
The consistency, comparability, and transparency of the information reported by employers and governmental nonemployer
contributing entities about OPEB transactions will be improved by requiring:
• The use of a discount rate that considers the availability of the OPEB plan’s fiduciary net position associated with the
OPEB of current active and inactive employees and the investment horizon of those resources, rather than utilizing only
the long-term expected rate of return regardless of whether the OPEB plan’s fiduciary net position is projected to be
sufficient to make projected benefit payments and is expected to be invested using a strategy to achieve that return.
• A single method of attributing the actuarial present value of projected benefit payments to periods of employee service,
rather than allowing a choice among six methods with additional variations.
• Immediate recognition in OPEB expense, rather than a choice of recognition periods, of the effects of changes of benefit
terms.
• Recognition of OPEB expense that incorporates deferred outflows of resources and deferred inflows of resources related
to OPEB over a defined, closed period, rather than a choice between an open or closed period.
GASB Statement No. 76 - The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments
Summary
The objective of this Statement is to identify-in the context of the current governmental financial reporting environment-the
hierarchy of generally accepted accounting principles (GAAP). The “GAAP hierarchy” consists of the sources of accounting
principles used to prepare financial statements of state and local governmental entities in conformity with GAAP and the
framework for selecting those principles. This Statement reduces the GAAP hierarchy to two categories of authoritative GAAP
and addresses the use of authoritative and nonauthoritative literature in the event that the accounting treatment for a transaction or
other event is not specified within a source of authoritative GAAP.
This Statement supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local
Governments.
Effective Date
The requirements of this Statement are effective for financial statements for periods beginning after
June 15, 2015, and should be applied retroactively. Earlier application is permitted.
-19-
Future Accounting Standard Changes - Continued
How the Changes in This Statement Will Improve Financial Reporting
The requirements in this Statement improve financial reporting by (1) raising the category of GASB Implementation Guides in
the GAAP hierarchy, thus providing the opportunity for broader public input on implementation guidance; (2) emphasizing the
importance of analogies to authoritative literature when the accounting treatment for an event is not specified in authoritative
GAAP; and (3) requiring the consideration of consistency with the GASB Concepts Statements when evaluating accounting
treatments specified in nonauthoritative literature. As a result, governments will apply financial reporting guidance with less
variation, which will improve the usefulness of financial statement information for making decisions and assessing accountability
and enhance the comparability of financial statement information among governments.
GASB Statement No. 77 - Tax Abatement Disclosures
Summary
Financial statements prepared by state and local governments in conformity with generally accepted accounting principles provide
citizens and taxpayers, legislative and oversight bodies, municipal bond analysts, and others with information they need to
evaluate the financial health of governments, make decisions, and assess accountability. This information is intended, among
other things, to assist these users of financial statements in assessing (1) whether a government’s current-year revenues were
sufficient to pay for current-year services (known as interperiod equity), (2) whether a government complied with finance-related
legal and contractual obligations, (3) where a government’s financial resources come from and how it uses them, and (4) a
government’s financial position and economic condition and how they have changed over time.
Financial statement users need information about certain limitations on a government’s ability to raise resources. This includes
limitations on revenue-raising capacity resulting from government programs that use tax abatements to induce behavior by
individuals and entities that is beneficial to the government or its citizens. Tax abatements are widely used by state and local
governments, particularly to encourage economic development. For financial reporting purposes, this Statement defines a tax
abatement as resulting from an agreement between a government and an individual or entity in which the government promises to
forgo tax revenues and the individual or entity promises to subsequently take a specific action that contributes to economic
development or otherwise benefits the government or its citizens.
Although many governments offer tax abatements and provide information to the public about them, they do not always provide
the information necessary to assess how tax abatements affect their financial position and results of operations, including their
ability to raise resources in the future. This Statement requires disclosure of tax abatement information about (1) a reporting
government’s own tax abatement agreements and (2) those that are entered into by other governments and that reduce the
reporting government’s tax revenues.
This Statement requires governments that enter into tax abatement agreements to disclose the following information about the
agreements:
• Brief descriptive information, such as the tax being abated, the authority under which tax abatements are provided,
eligibility criteria, the mechanism by which taxes are abated, provisions for recapturing abated taxes, and the types of
commitments made by tax abatement recipients.
• The gross dollar amount of taxes abated during the period.
• Commitments made by a government, other than to abate taxes, as part of a tax abatement agreement.
Governments should organize those disclosures by major tax abatement program and may disclose information for individual tax
abatement agreements within those programs.
-20-
Future Accounting Standard Changes - Continued
Tax abatement agreements of other governments should be organized by the government that entered into the tax abatement
agreement and the specific tax being abated. Governments may disclose information for individual tax abatement agreements of
other governments within the specific tax being abated. For those tax abatement agreements, a reporting government should
disclose:
• The names of the governments that entered into the agreements.
• The specific taxes being abated.
• The gross dollar amount of taxes abated during the period.
Effective Date and Transition
The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2015. Earlier
application is encouraged.
How the Changes in This Statement Will Improve Financial Reporting
The requirements of this Statement improve financial reporting by giving users of financial statements essential information that
is not consistently or comprehensively reported to the public at present. Disclosure of information about the nature and magnitude
of tax abatements will make these transactions more transparent to financial statement users. As a result, users will be better
equipped to understand (1) how tax abatements affect a government’s future ability to raise resources and meet its financial
obligations and (2) the impact those abatements have on a government’s financial position and economic condition.
GASB Statement No. 78 - Pension Provided Through Certain Multiple-Employer Defined Benefit Pension Plans
Summary
The objective of this Statement is to address a practice issue regarding the scope and applicability of Statement No. 68,
Accounting and Financial Reporting for Pensions. This issue is associated with pensions provided through certain multiple-
employer defined benefit pension plans and to state or local governmental employers whose employees are provided with such
pensions.
Prior to the issuance of this Statement, the requirements of Statement 68 applied to the financial statements of all state and local
governmental employers whose employees are provided with pensions through pension plans that are administered through trusts
that meet the criteria in paragraph 4 of that Statement.
This Statement amends the scope and applicability of Statement 68 to exclude pensions provided to employees of state or local
governmental employers through a cost-sharing multiple-employer defined benefit pension plan that (1) is not a state or local
governmental pension plan, (2) is used to provide defined benefit pensions both to employees of state or local governmental
employers and to employees of employers that are not state or local governmental employers, and (3) has no predominant state or
local governmental employer (either individually or collectively with other state or local governmental employers that provide
pensions through the pension plan). This Statement establishes requirements for recognition and measurement of pension
expense, expenditures, and liabilities; note disclosures; and required supplementary information for pensions that have the
characteristics described above.
Effective Date
The requirements of this Statement are effective for reporting periods beginning after December 15, 2015. Earlier application is
encouraged.
-21-
Future Accounting Standard Changes - Continued
GASB Statement No. 79 - Certain External Investment Pools and Pool Participants
Summary
This Statement addresses accounting and financial reporting for certain external investment pools and pool participants.
Specifically, it establishes criteria for an external investment pool to qualify for making the election to measure all of its
investments at amortized cost for financial reporting purposes. An external investment pool qualifies for that reporting if it meets
all of the applicable criteria established in this Statement. The specific criteria address (1) how the external investment pool
transacts with participants; (2) requirements for portfolio maturity, quality, diversification, and liquidity; and (3) calculation and
requirements of a shadow price. Significant noncompliance prevents the external investment pool from measuring all of its
investments at amortized cost for financial reporting purposes. Professional judgment is required to determine if instances of
noncompliance with the criteria established by this Statement during the reporting period, individually or in the aggregate, were
significant.
If an external investment pool does not meet the criteria established by this Statement, that pool should apply the provisions in
paragraph 16 of Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment
Pools, as amended. If an external investment pool meets the criteria in this Statement and measures all of its investments at
amortized cost, the pool’s participants also should measure their investments in that external investment pool at amortized cost for
financial reporting purposes. If an external investment pool does not meet the criteria in this Statement, the pool’s participants
should measure their investments in that pool at fair value, as provided in paragraph 11 of Statement 31, as amended.
This Statement establishes additional note disclosure requirements for qualifying external investment pools that measure all of
their investments at amortized cost for financial reporting purposes and for governments that participate in those pools. Those
disclosures for both the qualifying external investment pools and their participants include information about any limitations or
restrictions on participant withdrawals.
Effective Date
The requirements of this Statement are effective for reporting periods beginning after June 15, 2015, except for the provisions in
paragraphs 18, 19, 23-26, and 40, which are effective for reporting periods beginning after December 15, 2015.
How the Changes in This Statement Will Improve Financial Reporting
This Statement will enhance comparability of financial statements among governments by establishing specific criteria used to
determine whether a qualifying external investment pool may elect to use an amortized cost exception to fair value measurement.
Those criteria will provide qualifying external investment pools and participants in those pools with consistent application of an
amortized cost-based measurement for financial reporting purposes. That measurement approximates fair value and mirrors the
operations of external investment pools that transact with participants at a stable net asset value per share.
GASB Statement No. 80 - Blending Requirements for Certain Component Units - an Amendment of GASB Statement No. 14
Summary
The objective of the Statement is to improve financial reporting by clarifying the financial statement presentation requirements for
certain component units. This Statement amends the blending requirements established in paragraph 53 of Statement No. 14,
The Financial Reporting Entity, as amended.
This Statement amends the blending requirements for the financial statement presentation of component units of all state and local
governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which
the primary government is the sole corporate member. The additional criterion does not apply to component units included in the
financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are
Component Units.
-22-
Future Accounting Standard Changes - Continued
Effective Date
The requirements of this Statement are effective for reporting periods beginning after June 15, 2016. Earlier application is
encouraged.
How the Changes in This Statement Will Improve Financial Reporting
The requirements of this Statement enhance the comparability of financial statements among governments. Greater comparability
improves the decision-usefulness of information reported in financial statements and enhances its value for assessing government
accountability.
(1) Note. From GASB Pronouncements Summaries. Copyright 2015 by the Financial Accounting Foundation, 401 Merritt 7, Norwalk,
CT 06856, USA, and is reproduced with permission.
* * * * *
Restriction on Use
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
May 2, 2016
-23-
STAFF REPORT Agenda Item 11b.
Council Meeting:
May 12, 2016
Prepared By:
Brad Martens
Topic:
Compensation Study Survey Results
Action Required:
Direction
Summary:
Attached to this report are the results of the compensation study completed by
Springsted Incorporated. The first attachment is a final report along with data from the
selected comparison group. The second attachment is data excluding Maple Grove and
Plymouth. While the second attachment is not the selected comparison group, staff
thought it would provide context to the discussion.
It is requested that the Council review the information and direct staff on next steps.
Several options are outlined below in this report.
Financial/Budget:
The agreement with Springsted Incorporated was in the amount of $3,500 plus
expenses. Any changes to the compensation structure would have further financial
effects.
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.
EQUAL OPPORTUNITY
We believe that every employee and citizen should be afforded an equal
opportunity to participate in all aspects of employment, citizenship, and
governance in the City of Corcoran based exclusively on their ability to
contribute.
Page 2
Options:
1. Accept the compensation study results and take no further action.
2. Accept the compensation study results and direct staff to review job evaluation
points on certain positions.
3. Accept the compensation study results and direct staff to continue working
towards getting additional health insurance options for 2017.
4. Accept the compensation study results and establish a sub-committee of the
Council to consider compensation recommendations for 2017.
5. Send back for further review.
Recommendation:
The compensation study results indicate the City’s health insurance plans may be more
expensive than other plan providers. Staff is currently looking into other options and it is
recommended that this work continues. Additionally, as recommended in the results, the
City should consider reviewing job evaluation points for certain positions that are
outliers or that have not been updated recently. This has been completed in the past by
George Gmach for no cost.
Further, decisions on 2017 compensation will need to be made in the near future as part
of the 2017 budget process. If there is a desire to make substantial changes, it is
recommended a sub-committee be established to work with staff on recommended
changes.
Council Action:
Accept the results of the compensation study; direct staff on next steps in taking action
with the information provided.
Attachments:
1. Compensation Study Final Report
2. Compensation Data Excluding Maple Grove and Plymouth
May 3, 2016
Mr. Brad Martens
City Administrator
City of Corcoran
8200 County Road 116
Corcoran, Minnesota 55340
Re: Compensation Study Final Report
Dear Mr. Martens:
Springsted Incorporated is pleased to provide the City of Corcoran with the completed Compensation
Study.
The City of Corcoran retained Springsted Incorporated to conduct a Compensation Study in the winter of
2016. The Study represents a thorough market analysis of equivalent positions in comparable
organizations.
A compensation system provides the framework for determining how employees will be paid. As a
general rule, most organizations conduct comprehensive classification and compensation studies
approximately every five to seven years ensuring their ability to hire and retain qualified employees and
that internal relationships are equitable. The external market comparison is important because it ensures
that the compensation plan is adequate to attract new employees and retain existing employees.
Conducting periodic reviews of internal and external comparability of an organizations compensation
program will assist in maintaining a long-term compensation program and in recruiting and retaining
qualified, experienced employees.
Market Survey. The comprehensive compensation and benefits survey included 11 City positions.
Fifteen public entities, listed below, were selected to participate in the survey:
• City of Carver
• City of Dayton
• City of Delano
• City of Elko New Market
• City of Greenfield
• City of Hanover
• City of Hugo
• City of Independence
• City of Maple Grove
• City of Medina
• City of Minnetrista
• City of Plymouth
• City of Rockford
• City of Victoria
• City of Watertown
The survey participants were selected based on their similarity and/or proximity to the City of Corcoran,
geographic location and comparability of positions to City of Corcoran positions. The cities in bold are
the cities in which we were able to gather salary information. Survey respondents were asked to provide
information only on those City of Corcoran positions which they considered to be comparable to positions
in their organizations. Therefore, survey respondents did not provide data for every position surveyed. In
Springsted Incorporated
380 Jackson Street, Suite 300
Saint Paul, MN 55101-2887
Tel: 651-223-3000
Fax: 651-223-3002
www.springsted.com
addition, we collected salary information from the Bureau of Labor Statistics for private sector
organizations for positions which were deemed comparable to positions within the City of Corcoran
Survey Results - Wages. Of the 11 positions included in the survey, the information for 10 of the
positions was included in the overall analysis. One position was not included in the analysis as the
information collected was incomplete and inconsistent. A review of the City’s position in relationship to
the market using the fourteen respondents indicate that, on average the salary ranges of City positions are
below the market average. Minimum salaries are 2.77% below the average minimum salaries, midpoint
wages of the surveyed positions are, on average, 5.75% below the market and the maximum salaries on
average are 8.13% below the market. For comparison purposes, wages which are within 5% above or
below the market average, dependent on the organizations pay philosophy regarding market relationship,
are considered to be competitive, which indicates that, on average, the City’s minimum wages are
considered to be consistent with the market. As part of the analysis, we also conducted a review of the
market comparisons excluding the cities of Maple Grove and Plymouth. Based on this analysis the
City’s minimum salaries are slightly above the market (although still falling within the +/-5%) by 2.34%.
Midpoint and maximum salaries are, on average, slightly below market, with midpoints .68% below
market and maximum salaries 3.14% below market (again, falling within the 5% range), however, there
are some positions which fall more than 5% below the average.
Survey Results - Benefits. Eleven of the fifteen cities provided information regarding the benefits provided
to employees. A summary is as follows:
• Holidays – Consistent in total holidays provided (includes designated and floating holidays)
• Annual Leave (includes vacation and sick leave or paid-time-off) – above average (31 vs. 35
maximum accumulation)
• Health Insurance – Difficult to compare as organizations coverage and programs vary and many
have multiple levels, however, the City’s cost of health insurance is significantly higher than the
survey respondents.
• Other Insurances – Slightly higher benefit than those provided by the survey respondents
(includes short and long-term disability and dental insurance)
• Other Benefits – Consistent with other employers
Compensation Philosophy. A pay philosophy guides the design of a compensation system and answers
key questions regarding pay strategy. It generally takes a comprehensive, long term focus and explains
the compensation program’s goals and how the program supports the employer’s long-range strategic
goals. Without a pay philosophy, compensation decisions tend to be viewed from a short-term tactical
standpoint apart from the organization’s overall goals.
Market competitiveness and internal equity are among the most important areas addressed in a pay
philosophy. An organization’s desired market position involves defining the market and identifying where
the organization wants to be positioned within that market. Market position should balance what it takes to
attract new employees and retain skilled employees (in other words, eliminate higher pay as the reason
employees leave the organization) with the organization’s financial resources. Internal equity expresses an
organization’s desire to provide comparable pay to positions with comparable duties and responsibilities.
A pay philosophy should be developed that establishes a compensation program based on individual
employee performance as a key feature of the pay philosophy. Therefore, we emphasize references to
performance in the pay philosophy discussion. As part of the study, it is recommended that the City
consider these concepts in the adoption of a formal pay philosophy:
• Providing fair and equitable rates of pay to employees
• Defining the City’s market area
• Developing a system that establishes a “market rate” for each position and states the minimum wage
and maximum rates that the City will pay individuals within a position
• Establishing rates of pay that allow the City to compete successfully for new employees within its
market area
• Establishing a market position that is fiscally responsible with public resources
• Ensuring that pay rates for existing employees are based on individual performance that meets or
exceeds expectations and reflects changing economic conditions
• Developing a compensation system that allows employees to progress through the pay range as long
as their performance consistently meets expectations
• Developing pay administration policies and procedures that ensure their consistent application
between departments
• Ensuring that the compensation program is understandable to employees, supervisors, managers,
the City Council and the public
Summary. The City’s current compensation plan, on average is consistent to slightly below the market
(dependent on the comparison group), with starting salaries more consistent with the market and top
salaries further below the market. A review of the internal relationships of positions within the City would
also indicate that there are some inequities amongst comparable positions. The City should consider
reviewing the job evaluation points (to review internal relationships) on select to ensure the compensation
plan is internally equitable and competitive with the market.
Please contact me if you have any questions.
Respectfully submitted, Ann S. Antonsen
Ann S. Antonsen, Vice President
Consultant
City of Corcoran, Minnesota
Salary Survey - Summary
Page 1
Average
Sheet Position Surveyed YOS Lowest Highest Average Lowest Highest Lowest Highest Average Min Diff %Mid Diff %Max Diff %
1 Administrative Assistant - Administration 12 1.00 8.19 47,544.78 30,680.00 59,542.00 41,735.01 40,436.00 67,303.50 44,911.00 75,065.00 53,169.85 43,659.20 1,924.19 4.41%48,443.20 898.42 1.85%53,227.20 57.35 0.11%
2 City Administrator 13 1.00 2.59 110,831.41 80,000.00 155,756.00 98,548.82 89,954.50 155,756.00 99,909.00 155,756.00 123,114.00 81,806.40 (16,742.42)-20.47%90,781.60 (20,049.81)-22.09%99,756.80 (23,357.20)-23.41%
3 City Clerk/Administrative Services Coord.8 1.00 13.86 67,711.02 50,437.00 74,661.00 59,943.43 56,713.00 85,396.00 62,989.00 96,131.00 75,098.63 57,948.80 (1,994.63)-3.44%64,313.60 (3,397.42)-5.28%70,678.40 (4,420.23)-6.25%
4 DNU - Code Compliance Officer 4 1.00 12.50 64,076.17 52,998.00 59,542.00 55,831.33 62,441.50 67,303.50 70,013.00 75,065.00 72,321.00 51,750.40 57,428.80 63,107.20
5 Deputy Clerk 10 1.00 6.25 52,425.59 35,984.00 50,301.00 44,907.84 48,389.00 56,990.00 55,182.00 64,424.00 59,943.34 48,900.80 3,992.96 8.17%54,267.20 1,841.61 3.39%59,633.60 (309.74)-0.52%
6 Police Lieutenant 69,492.80 77,116.00 84,739.20
7 Police Officer 7 1.00 9.00 64,627.16 51,928.00 57,589.00 55,392.74 61,203.00 71,479.50 70,013.00 85,634.00 73,861.57 57,948.80 2,556.06 4.41%64,313.60 (313.56)-0.49%70,678.40 (3,183.17)-4.50%
8 Public Safety Administrative Assistant 6 1.00 20.33 49,340.00 32,691.00 50,731.00 42,686.30 39,883.00 57,354.50 47,075.00 63,978.00 55,993.70 43,659.20 972.90 2.23%48,443.20 (896.80)-1.85%53,227.20 (2,766.50)-5.20%
9 Public Safety Director 6 1.00 14.67 102,602.59 75,088.00 117,641.00 90,916.44 85,051.20 135,696.50 95,014.40 153,752.00 114,288.74 78,707.20 (12,209.24)-15.51%87,349.60 (15,252.99)-17.46%95,992.00 (18,296.74)-19.06%
10 Public Works Maintenance Operator 14 1.00 9.17 49,838.20 34,341.00 57,325.00 43,334.78 42,670.50 60,018.50 48,054.00 64,230.00 56,341.62 46,196.80 2,862.02 6.20%51,272.00 1,433.80 2.80%56,347.20 5.58 0.01%
11 Public Works Superintendent 13 1.00 9.91 79,670.19 53,539.20 82,285.00 70,704.61 60,642.40 94,739.50 67,745.60 107,194.00 88,897.82 63,752.00 (6,952.61)-10.91%70,740.80 (8,929.39)-12.62%77,729.60 (11,168.22)-14.37%
Averages 9.30 1.00 9.77 (2,843.42)-2.77%(4,962.90)-5.75%(7,048.76)-8.13%
DNU - did not use survey information
Corcoran, MN InformationNumber of
Respondents
Average
FTES
Average
Midpoint
Minimum Salary Midpoint Salary Maximum Salary
City of Corcoran, Minnesota
Fringe Benefit Comparison-All
Least Reported Most Reported Average Reported Corcoran, MN
1 a Holidays (Days/Year)10 11 10 11
b Floating Holidays No (3)Yes (7)Yes No
If yes, how many?1.00 2.00 1
c Holiday on Regular Days Off Other (0)Fri-Mon (11)Fri-Mon Fri-Mon
d Comp on Holidays Worked Other (4)
Time and a ½T&½ (3)3 1
Double Time Dbl (3)3
Double Time and a ½DT&½ (2)2
Other Other (4)4 Other (4)
2 Annual Leave (Days/Year)
a Vacation/Sick or PTO PTO (4)Vac-Sick (7)Vac-Sick PTO
b Vacation - days
6 months 5.00 12.50 8
1 year 6.67 12.50 10
2 years 6.67 15.00 11
3 years 6.67 15.00 11
4 years 6.67 15.00 11
5 years 6.67 15.00 14
6 years 10.00 20.00 15
7 years 10.00 20.00 15
8 years 10.00 20.00 15
9 years 10.00 20.00 15
10 years 10.00 20.00 17
11 years 12.00 25.00 19
12 years 12.00 25.00 19
13 years 12.00 25.00 19
14 years 12.00 25.00 20
15 years 12.00 25.00 20
16 years 14.00 25.00 20
17 years 14.00 25.00 20
18 years 14.00 25.00 20
19 years 14.00 25.00 21
20 years 14.00 25.00 21
20+ years 14.00 30.00 21
b PTO - days or hours?
6 months 2.50 23.00 15 15.00
1 year 15.00 23.00 18 20.00
2 years 15.00 23.00 18 20.00
3 years 15.00 23.00 18 20.00
4 years 15.00 23.00 18 20.00
5 years 15.00 23.00 18 25.00
6 years 21.00 29.00 24 25.00
7 years 21.00 29.00 24 25.00
8 years 21.00 29.00 24 25.00
9 years 21.00 29.00 24 25.00
10 years 21.00 29.00 24 30.00
11 years 23.00 29.00 25 30.00
12 years 23.00 29.00 25 30.00
13 years 23.00 34.00 27 30.00
14 years 23.00 34.00 27 30.00
15 years 23.00 34.00 28 35.00
16 years 25.00 34.00 30 35.00
17 years 25.00 34.00 30 35.00
18 years 25.00 34.00 30 35.00
19 years 25.00 34.00 30 35.00
20 years 25.00 34.00 30 35.00
20+ years 25.00 34.00 30 40.00
c Carried into Next Year 10.00 300.00 84 1x accrual rate
d Max Accumulation 20.00 300.00 88 Unltd
e Comp after Max Accumulation Yes (3)No (5)No No
City of Corcoran, Minnesota
Fringe Benefit Comparison-All
Least Reported Most Reported Average Reported Corcoran, MN
1 a Holidays (Days/Year)10 11 10 11
3 a Sick Leave (Days/Year)8.00 13.00 11
b Carried into Next Year 30.00 120.00 90
c Max. Accumulation 30.00 960.00 254
d Paid at Termination/Retirement No (2)Yes (6)Yes
e Use for Medical Appointments No (0)Yes (9)Yes
f Use for Dental Appointments No (0)Yes (9)Yes
g Use for Family Illness No (0)Yes (9)Yes
h Sick Leave Bank Yes (3)No (4)No Yes
4 Pension and Retirement
a Other Than Social Security No (0)Yes (11)Yes Yes
b State Sponsored No (0)Yes (11)Yes Yes
c Employer Paid 7.50%7.50%7.50%7.50%
d Employee Paid 6.50%6.50%6.50%6.50%
e Death Benefit Yes (1)No (3)No Yes
5 Life & Disability Insurance
a Life Insurance No (0)Yes (11)Yes Yes
Employer Paid 0%100%90%100%
b AD&D No (0)Yes (7)Yes Yes
AD&D Double Indeminity Yes (2)No (5)No No
Employer Paid 0%100%75%
c Short Term Disability No (0)Yes (8)Yes Yes
Employer Paid 0%100%67%100%
d Long Term Disability No (0)Yes (8)Yes Yes
Employer Paid 0%100%67%100%
6 a Health Insurance No (0)Yes (11)Yes Yes
b Different Types of Coverage?No (2)Yes (7)Yes Yes
c 100% FTE participation required No (4)Yes (6)Yes No
d Not participating Yes/No (4/4)Yes/No (4/4)Yes
e Employee Only 508.00$ 633.53$ 549.28$ 935.00$
Employer Paid 95%100%99%
Employee Paid 0%5%2%
Max out of pocket 1,625.00$ 4,500.00$ 2,656.25$ 1,200.00$
Standard Office Visit Co-pay -$ 40.00$ 23.33$ 60.00$
f Employee/Spouse 1,130.50$ 1,582.87$ 1,356.69$ 1,962.50$
Employer Paid 62%62%62%
Employee Paid 38%38%38%
Max out of pocket 4,500.00$ 4,500.00$ 4,500.00$ 2,400.00$
Standard Office Visit Co-pay -$ -$ -$ 30.00$
g Employee/Child 1,077.00$ 1,582.87$ 1,309.79$ 1,869.00$
Employer Paid 60%62%61%
Employee Paid 38%40%39%
Max out of pocket 3,250.00$ 4,500.00$ 4,083.33$ 2,400.00$
Standard Office Visit Co-pay -$ 30.00$ 15.00$ 30.00$
h Employee/Family 1,269.50$ 1,582.87$ 1,447.39$ 2,430.00$
Employer Paid 60%85%69%
Employee Paid 15%75%42%
Max out of pocket 3,250.00$ 9,000.00$ 5,312.50$ 5,000.00$
Standard Office Visit Co-pay -$ 40.00$ 23.33$ 30.00$
City of Corcoran, Minnesota
Fringe Benefit Comparison-All
Least Reported Most Reported Average Reported Corcoran, MN
1 a Holidays (Days/Year)10 11 10 11
HEALTH INSURANCE TYPE 2 -
i Employee Only 473.00$ 542.24$ 510.61$ 617.00$
Employer Paid 95%100%99%
Employee Paid 0%5%1%
Annual Deductible 1,750.00$ 3,000.00$ 2,150.00$ 2,600.00$
Standard Office Visit Co-pay -$ -$ -$
Annual Maximum Out-of-Pocket 1,750.00$ 4,000.00$ 2,550.00$
j Employee/Spouse 1,354.76$ 1,354.76$ 1,354.76$ 1,294.00$
Employer Paid 67%75%71%
Employee Paid 25%33%29%
Annual Deductible 3,500.00$ 6,000.00$ 4,833.33$ 5,200.00$
Standard Office Visit Co-pay -$ -$ -$
Annual Maximum Out-of-Pocket 3,500.00$ 8,000.00$ 6,000.00$ 5,200.00$
k Employee/Child 1,354.76$ 1,354.76$ 1,354.76$ 1,233.00$
Employer Paid 67%75%71%
Employee Paid 25%33%29%
Annual Deductible 3,500.00$ 6,000.00$ 4,833.33$ 5,200.00$
Standard Office Visit Co-pay -$ -$ -$
Annual Maximum Out-of-Pocket 3,500.00$ 8,000.00$ 6,000.00$ 5,200.00$
l Employee/Family 1,203.00$ 1,538.67$ 1,365.48$
Employer Paid 67%100%82%
Employee Paid 0%33%18%
Annual Deductible 3,500.00$ 6,000.00$ 4,300.00$
Standard Office Visit Co-pay -$ -$ -$
Annual Maximum Out-of-Pocket 3,500.00$ 8,000.00$ 5,100.00$
m Supplemental program for HDP?No (2)Yes (9)Yes YesnType of Program H.S.A.o Employer Paid 0%0%0%
p Retirees No (3)Yes (6)Yes Yes
Years of Service Required No (0)Yes (2)Yes
If yes, how many?14.00 14.00 14
Employer Paid 0%0%0%50%
q Dental Insurance No (0)Yes (11)Yes Yes
Part of Health Plan Yes (2)No (7)No No
Employee Only 30.70$ 46.95$ 41.37$ 67.96$
Employer Paid 100%100%100%
Employee/Family 81.36$ 130.05$ 111.32$ 111.08$
Employer Paid 30%100%68%
r Vision Insurance No (3)Yes (7)Yes No
Part of Health Plan No (2)Yes (5)Yes
Employee Only Yes/No (0/0)Yes/No (0/0)
Employer Paid 0%0%0%
Employee/Family 18.27$ 18.55$ 18.41$
Employer Paid 0%0%0%
7 a Deferred Compensation No (1)Yes (9)Yes Yes
b Available to all Employees No (3)Yes (6)Yes Yes
c
Type of Plan
457
d Employer Contribution Yes (0)No (8)No No
8 Other Benefits Program
a Other Benefits Yes/No (5/5)Yes/No (5/5)
b Post Retirement Hlth Care Svgs Yes (2)No (8)No Yes
c Call Back Pay No (3)Yes (6)Yes Yes
d On Call/Stand By Pay No (2)Yes (8)Yes Yes
e Clothing Allowance No (3)Yes (8)Yes Yes
City of Corcoran, Minnesota
Fringe Benefit Comparison-All
Least Reported Most Reported Average Reported Corcoran, MN
1 a Holidays (Days/Year)10 11 10 11
9 Mgr/Administrator Compensation
a Included in Pay Plan No (4)Yes (6)Yes Yes
b Car or Vehicle Allowance Yes (4)No (6)No No
Personal Allowance Yes (1)No (2)No No
c Accrues Leave Differently Yes (2)No (8)No No
d Retirement Plan Differ Yes (2)No (8)No No
e Additional Benefits Yes/No (1/1)Yes/No (1/1)Yes
City of Corcoran, Minnesota
Salary Survey - Summary
Excluding Maple Grove and Plymouth
Page 1
Average
Sheet Position Surveyed YOS Lowest Highest Average Lowest Highest Lowest Highest Average Min Diff %Mid Diff %Max Diff %
1 Administrative Assistant - Administration 10 1.00 7.47 45,260.05 30,680.00 45,921.00 39,748.35 40,436.00 50,941.50 44,911.00 55,962.00 50,639.72 43,659.20 3,910.85 8.96%48,443.20 3,183.15 6.57%53,227.20 2,587.48 4.86%
2 City Administrator 11 1.00 2.88 103,007.06 80,000.00 104,143.00 89,674.33 89,954.50 119,905.50 99,909.00 138,055.00 116,339.78 81,806.40 (7,867.93)-9.62%90,781.60 (12,225.46)-13.47%99,756.80 (16,582.98)-16.62%
3 City Clerk/Administrative Services Coord.6 1.00 10.20 62,180.24 50,437.00 57,790.00 54,893.40 56,713.00 66,538.00 62,989.00 75,286.00 69,320.33 57,948.80 3,055.40 5.27%64,313.60 2,133.36 3.32%70,678.40 1,358.07 1.92%
4 DNU - Code Compliance Officer 2 1.00 9.00 62,483.50 54,954.00 54,954.00 54,954.00 62,483.50 62,483.50 70,013.00 70,013.00 70,013.00 51,750.40 57,428.80 63,107.20
5 Deputy Clerk 9 1.00 4.79 52,150.85 35,984.00 50,301.00 44,483.45 48,389.00 56,990.00 55,182.00 64,424.00 59,818.26 48,900.80 4,417.35 9.03%54,267.20 2,116.35 3.90%59,633.60 (184.66)-0.31%
6 Police Lieutenant 69,492.80 77,116.00 84,739.20
7 Police Officer 5 1.00 63,362.72 51,928.00 57,589.00 55,486.84 61,203.00 64,885.60 70,013.00 72,488.00 71,238.60 57,948.80 2,461.96 4.25%64,313.60 950.88 1.48%70,678.40 (560.20)-0.79%
8 Public Safety Administrative Assistant 4 1.00 22.00 47,373.38 32,691.00 45,573.00 40,894.70 39,883.00 52,249.50 47,075.00 58,926.00 53,852.05 43,659.20 2,764.50 6.33%48,443.20 1,069.83 2.21%53,227.20 (624.85)-1.17%
9 Public Safety Director 4 1.00 21.50 89,031.43 75,088.00 84,895.00 79,454.75 85,051.20 93,378.00 95,014.40 101,861.00 98,608.10 78,707.20 (747.55)-0.95%87,349.60 (1,681.83)-1.93%95,992.00 (2,616.10)-2.73%
10 Public Works Maintenance Operator 12 1.00 8.80 48,989.84 34,341.00 47,071.00 42,168.93 42,670.50 54,901.50 48,054.00 64,230.00 55,810.75 46,196.80 4,027.87 8.72%51,272.00 2,282.16 4.45%56,347.20 536.45 0.95%
11 Public Works Superintendent 13 1.00 9.91 79,670.19 53,539.20 82,285.00 70,704.61 60,642.40 94,739.50 67,745.60 107,194.00 88,897.82 63,752.00 (6,952.61)-10.91%70,740.80 (8,929.39)-12.62%77,729.60 (11,168.22)-14.37%
Averages 7.60 1.00 9.75 563.32 2.34%(1,233.44)-0.68%(3,028.33)-3.14%
DNU - did not use survey information
Corcoran, MN InformationNumber of
Respondents
Average
FTES
Average
Midpoint
Minimum Salary Midpoint Salary Maximum Salary
City of Corcoran, Minnesota
Fringe Benefit Comparison-Excl. - Excluding Maple Grove and Plymouth
Least Reported Most Reported Average Reported Corcoran, MN
1 a Holidays (Days/Year)10 11 10 11
b Floating Holidays No (2)Yes (6)Yes No
If yes, how many?1.00 2.00 1
c Holiday on Regular Days Off Other (0)Fri-Mon (9)Fri-Mon Fri-Mon
d Comp on Holidays Worked Other (4)
Time and a ½T&½ (2)2 1
Double Time Dbl (2)2
Double Time and a ½DT&½ (1)1
Other Other (4)4 Other (4)
2 Annual Leave (Days/Year)
a Vacation/Sick or PTO PTO (3)Vac-Sick (6)Vac-Sick PTO
b Vacation - days
6 months 5.00 10.00 7
1 year 6.67 10.00 9
2 years 6.67 15.00 10
3 years 6.67 15.00 10
4 years 6.67 15.00 10
5 years 6.67 15.00 14
6 years 10.00 20.00 15
7 years 10.00 20.00 15
8 years 10.00 20.00 15
9 years 10.00 20.00 15
10 years 10.00 20.00 17
11 years 12.00 25.00 19
12 years 12.00 25.00 19
13 years 12.00 25.00 19
14 years 12.00 25.00 20
15 years 12.00 25.00 20
16 years 14.00 25.00 20
17 years 14.00 25.00 20
18 years 14.00 25.00 20
19 years 14.00 25.00 20
20 years 14.00 25.00 20
20+ years 14.00 30.00 21
b PTO - days or hours?
6 months 2.50 23.00 14 15.00
1 year 15.00 23.00 18 20.00
2 years 15.00 23.00 18 20.00
3 years 15.00 23.00 18 20.00
4 years 15.00 23.00 18 20.00
5 years 15.00 23.00 18 25.00
6 years 21.00 29.00 24 25.00
7 years 21.00 29.00 24 25.00
8 years 21.00 29.00 24 25.00
9 years 21.00 29.00 24 25.00
10 years 21.00 29.00 24 30.00
11 years 23.00 29.00 26 30.00
12 years 23.00 29.00 26 30.00
13 years 23.00 34.00 27 30.00
14 years 23.00 34.00 27 30.00
15 years 23.00 34.00 27 35.00
16 years 25.00 34.00 30 35.00
17 years 25.00 34.00 30 35.00
18 years 25.00 34.00 30 35.00
19 years 25.00 34.00 30 35.00
20 years 25.00 34.00 30 35.00
20+ years 25.00 34.00 30 40.00
c Carried into Next Year 10.00 65.00 30 1x accrual rate
d Max Accumulation 20.00 65.00 35 Unltd
e Comp after Max Accumulation Yes (3)No (5)No No
City of Corcoran, Minnesota
Fringe Benefit Comparison-Excl. - Excluding Maple Grove and Plymouth
Least Reported Most Reported Average Reported Corcoran, MN
1 a Holidays (Days/Year)10 11 10 11
3 a Sick Leave (Days/Year)8.00 12.00 11
b Carried into Next Year 30.00 120.00 90
c Max. Accumulation 30.00 960.00 252
d Paid at Termination/Retirement No (1)Yes (6)Yes
e Use for Medical Appointments No (0)Yes (7)Yes
f Use for Dental Appointments No (0)Yes (7)Yes
g Use for Family Illness No (0)Yes (7)Yes
h Sick Leave Bank Yes (1)No (4)No Yes
4 Pension and Retirement
a Other Than Social Security No (0)Yes (9)Yes Yes
b State Sponsored No (0)Yes (9)Yes Yes
c Employer Paid 7.50%7.50%7.50%7.50%
d Employee Paid 6.50%6.50%6.50%6.50%
e Death Benefit Yes (1)No (2)No Yes
5 Life & Disability Insurance
a Life Insurance No (0)Yes (9)Yes Yes
Employer Paid 0%100%89%100%
b AD&D No (0)Yes (6)Yes Yes
AD&D Double Indeminity Yes (2)No (4)No No
Employer Paid 0%100%67%
c Short Term Disability No (0)Yes (7)Yes Yes
Employer Paid 0%100%80%100%
d Long Term Disability No (0)Yes (7)Yes Yes
Employer Paid 0%100%80%100%
6 a Health Insurance No (0)Yes (9)Yes Yes
b Different Types of Coverage?No (2)Yes (6)Yes Yes
c 100% FTE participation required No (3)Yes (6)Yes No
d Not participating Yes (3)No (4)No Yes
e Employee Only 508.00$ 539.00$ 521.20$ 935.00$
Employer Paid 95%100%98%
Employee Paid 0%5%3%
Max out of pocket 1,625.00$ 4,500.00$ 2,791.67$ 1,200.00$
Standard Office Visit Co-pay 30.00$ 40.00$ 35.00$ 60.00$
f Employee/Spouse 1,130.50$ 1,130.50$ 1,130.50$ 1,962.50$
Employer Paid 0%0%#DIV/0!
Employee Paid 0%0%#DIV/0!
Max out of pocket 4,500.00$ 4,500.00$ 4,500.00$ 2,400.00$
Standard Office Visit Co-pay -$ -$ #DIV/0!30.00$
g Employee/Child 1,077.00$ 1,269.50$ 1,173.25$ 1,869.00$
Employer Paid 60%60%60%
Employee Paid 40%40%40%
Max out of pocket 3,250.00$ 4,500.00$ 3,875.00$ 2,400.00$
Standard Office Visit Co-pay 30.00$ 30.00$ 30.00$ 30.00$
h Employee/Family 1,269.50$ 1,538.67$ 1,402.22$ 2,430.00$
Employer Paid 60%85%73%
Employee Paid 15%75%43%
Max out of pocket 3,250.00$ 9,000.00$ 5,583.33$ 5,000.00$
Standard Office Visit Co-pay 30.00$ 40.00$ 35.00$ 30.00$
City of Corcoran, Minnesota
Fringe Benefit Comparison-Excl. - Excluding Maple Grove and Plymouth
Least Reported Most Reported Average Reported Corcoran, MN
1 a Holidays (Days/Year)10 11 10 11
HEALTH INSURANCE TYPE 2 -
i Employee Only 473.00$ 516.60$ 494.80$ 617.00$
Employer Paid 95%100%98%
Employee Paid 0%5%2%
Annual Deductible 1,750.00$ 3,000.00$ 2,062.50$ 2,600.00$
Standard Office Visit Co-pay -$ -$ -$
Annual Maximum Out-of-Pocket 1,750.00$ 3,250.00$ 2,187.50$
j Employee/Spouse -$ -$ #DIV/0!1,294.00$
Employer Paid 75%75%75%
Employee Paid 25%25%25%
Annual Deductible 3,500.00$ 6,000.00$ 4,750.00$ 5,200.00$
Standard Office Visit Co-pay -$ -$ -$
Annual Maximum Out-of-Pocket 3,500.00$ 6,500.00$ 5,000.00$ 5,200.00$
k Employee/Child -$ -$ #DIV/0!1,233.00$
Employer Paid 75%75%75%
Employee Paid 25%25%25%
Annual Deductible 3,500.00$ 6,000.00$ 4,750.00$ 5,200.00$
Standard Office Visit Co-pay -$ -$ -$
Annual Maximum Out-of-Pocket 3,500.00$ 6,500.00$ 5,000.00$ 5,200.00$
l Employee/Family 1,203.00$ 1,538.67$ 1,370.84$
Employer Paid 75%100%87%
Employee Paid 0%25%13%
Annual Deductible 3,500.00$ 6,000.00$ 4,125.00$
Standard Office Visit Co-pay -$ -$ -$
Annual Maximum Out-of-Pocket 3,500.00$ 6,500.00$ 4,375.00$
m Supplemental program for HDP?No (2)Yes (7)Yes YesnType of Program H.S.A.o Employer Paid 0%0%0%
p Retirees No (3)Yes (4)Yes Yes
Years of Service Required No (0)Yes (2)Yes
If yes, how many?14.00 14.00 14
Employer Paid 0%0%0%50%
q Dental Insurance No (0)Yes (9)Yes Yes
Part of Health Plan Yes (2)No (6)No No
Employee Only 30.70$ 46.95$ 41.51$ 67.96$
Employer Paid 100%100%100%
Employee/Family 81.36$ 130.05$ 111.09$ 111.08$
Employer Paid 30%100%68%
r Vision Insurance No (2)Yes (6)Yes No
Part of Health Plan No (2)Yes (3)Yes
Employee Only Yes/No (0/0)Yes/No (0/0)
Employer Paid 0%0%0%
Employee/Family 18.27$ 18.55$ 18.41$
Employer Paid 0%0%0%
7 a Deferred Compensation No (1)Yes (7)Yes Yes
b Available to all Employees No (1)Yes (6)Yes Yes
c
Type of Plan
457
d Employer Contribution Yes (0)No (6)No No
8 Other Benefits Program
a Other Benefits Yes (3)No (5)No
b Post Retirement Hlth Care Svgs Yes (0)No (8)No Yes
c Call Back Pay No (3)Yes (4)Yes Yes
d On Call/Stand By Pay No (2)Yes (6)Yes Yes
e Clothing Allowance No (3)Yes (6)Yes Yes
City of Corcoran, Minnesota
Fringe Benefit Comparison-Excl. - Excluding Maple Grove and Plymouth
Least Reported Most Reported Average Reported Corcoran, MN
1 a Holidays (Days/Year)10 11 10 11
9 Mgr/Administrator Compensation
a Included in Pay Plan No (3)Yes (5)Yes Yes
b Car or Vehicle Allowance Yes (2)No (6)No No
Personal Allowance Yes (0)No (2)No No
c Accrues Leave Differently Yes (2)No (6)No No
d Retirement Plan Differ Yes (1)No (7)No No
e Additional Benefits Yes/No (1/1)Yes/No (1/1)Yes
STAFF REPORT Agenda Item 11c.
Council Meeting:
May 12, 2016
Prepared By:
Brad Martens
Topic:
Crew Leader Appointment – Brandon Heinz
Action Required:
Approval
Summary:
On April 14th, the City Council approved the Crew Leader Job Description and
authorized the City Administrator to begin the recruitment process. The position was
advertised internally and three individuals applied for the position.
Interviews were held on Monday, May 2nd and included City Administrator Brad Martens,
Public Works Superintendent Pat Meister, and Maple Grove Utility Supervisor Jim
Sadler. Candidates were asked 17 questions and rated on their answers.
After review of the interview results, current Maintenance Worker Brandon Heinz is
recommended to be appointed to the position of Crew Leader effective May 14th. An
offer is attached to this report outlining the details for approval.
Financial/Budget:
The Crew Leader job description was reviewed and the points assigned to the job rates
it at a grade 10 as compared to grade 7 for the Maintenance Worker position. The
below table shows the comparison between the grades:
Grade Start 6 Months 1 Year 2 Years 3 Years 4 Years 5 Years
7 $22.21 $23.02 $23.84 $24.65 $25.46 $26.27 $27.09
10 $26.33 $27.29 $28.25 $29.22 $30.18 $31.14 $32.10
It is recommended that Brandon Heinz be placed at the 1 Year Step of Grade 10 which
is $28.25/hour. The 2016 budget was approved anticipating someone in the Crew
Leader position for the entire year. The promotion will not result in an increase to the
budget.
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
Page 2
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.
EQUAL OPPORTUNITY
We believe that every employee and citizen should be afforded an equal
opportunity to participate in all aspects of employment, citizenship, and
governance in the City of Corcoran based exclusively on their ability to
contribute.
Options:
1. Approve the job offer and appointment of Brandon Heinz to the position of Public
Works Crew Leader.
2. Send back for further review.
Recommendation:
Approve the job offer and appointment of Brandon Heinz to the position of Public Works
Crew Leader.
Council Action:
Consider a motion to approve the job offer and appointment of Brandon Heinz to the
position of Public Works Crew Leader.
Attachments:
1. Job Offer – Brandon Heinz
1
CITY OF CORCORAN
8200 CO RD 116 ∙ Corcoran, MN 55340
763.420.2288
Email: general@ci.corcoran.mn.us Website: www.ci.corcoran.mn.us
May 12, 2016
Brandon Heinz
20881 County Road 117
Corcoran, MN 55374
Dear Mr. Heinz,
This is a job offer for the Public Works Crew Leader position with the City of Corcoran.
The terms of this offer are as follows:
1. The effective date of the promotion is May 14, 2016.
2. This is a full-time, non-exempt, non-union position. Your typical work week will be Monday –
Friday 7:00 am to 3:00 pm with a seasonal alteration to a summer schedule of Monday –
Thursday 6:00 am – 3:00 pm, Friday 8:00 am – 12:00 pm. You are expected to work other
evening and weekend hours as required and attend City Council meetings and other meetings
as requested.
3. Your beginning rate of pay will be $28.25 per hour which is the Year 1 Step for this position in
Pay Grade 10. You will be paid according to the City’s normal payroll calendar which includes
26 bi-weekly pay periods. You will be eligible for a step increase upon completion of your one
year anniversary.
Hourly Pay Rate – 2016
Start 6 Months Year 1 Year 2 Year 3 Year 4 Year 5
$26.33 $27.29 $28.25 $29.22 $30.18 $31.14 $32.10
4. Benefits will continue as established in the City of Corcoran Employee Handbook.
5. The City has a six month probationary period for promoted employees. You will receive a
performance review from your supervisor at the conclusion of your probationary period.
6. This letter is not intended nor should it be considered as an employment contract for a definite
or indefinite period of time.
If you choose to accept the offer, please sign, date, and return page three of this document indicating
you agree to the terms and the date you will be starting your new position with the City of Corcoran.
Congratulations,
Brad Martens
City Administrator
Enclosure:
Offer Agreement
2
Offer Agreement
Offer for Brandon Heinz
Public Works Crew Leader
Full-time, Non-Exempt
Start Date: May 14, 2016
I agree to the terms outlined in the above letter.
______________________________________ ____________
Candidate Date
City of Corcoran
2016 City Council Schedule
Agenda Item 13.
May 26, 2016
Planning Project Update
Code Compliance Report
Dust Control Public Hearing
Ordinance Amendment for Private Driveways
Southeast and Downtown Design Guidelines
June 9, 2016 Council Work Session
2017 Budget
Five Year Financial Management Plan assumptions
June 9, 2016
Financial Performance Report
June 23, 2016,
Planning Project Update
Code Compliance Report
Park Dedication Ordinance Update
July 14, 2016
Financial Performance Report
Appoint Election Judges for the Primary Election
July 28, 2016,
Planning Project Update
Code Compliance Report
August 11, 2016
Financial Performance Report
August 25, 2016,
Planning Project Update
Code Compliance Report
Night to Unite Recap
Labor Agreement Negotiation Process
September 8, 2016
Financial Performance Report
Preliminary Levy