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2003-07-22
PLEASE TURN OFF AI JI, CELL PHONES & PAGERS IN COUNCIL CHAMBERS. AGENDA rr i i .e_. MOUND CITY COUNCIL MEETING TUESDAY, JULY 22, 2003 7:30 PM CITY COUNCIL CHAMBERS 5341 MAYWOOD ROAD *Consent Agenda: Items listed under the Consent Agenda are considered routine in nature and will be enacted &v a single roll call vote. There will be no separate discussion of these items un/ess a Council Member or Citizen so requests. In that event the item will be removed from the Consent Agenda and considered in nomnal sequence. 1. OPEN MEETING PLEDGE OF ALLEGIANCE APPROVE AGENDA, WITH ANY AMENDMENTS *CONSENT AGENDA *A. *B. *C. APPROVE MINUTES: JULY 8, 2003 REGULAR MEET1NG APPROVE PAYMENT OF CLAIM S APPROVE PLANNING COMMISSION RECOMMENDATIONS *D. *E. *F. *G 1. CASE #03-31: CHRISTINE EBERT 4925 DRUMMOND ROAD VARIANCES: FRONT SETBACK/HARDCOVER RECOMMENDED: APPROVAL 2. CASE #-3-28: DAN GLEASON 4711 MANCHESTER ROAD VARIANCES: REAR SETBACK RECOMMENDED: APPROVAL APPROVE TEMPORARY SIGN PERMIT: 2003 OUR LADY OF THE LAKE INCREDIBLE FESTIVAL APPROVE PUBLIC LANDS PERMIT FOR VILLAGE BY THE BAY APPROVE RELEASE OF TAX FORFEITURE PROPERTY APPROVE PAYMENT REQUEST NO. 1 BY VALLEY PAVING FOR 2003 STREET RECONSTRUCTION PROJECT 2793-2796 2797-2826 2827-2833 2834-2844 2845-2847 2848-2861 2862-2869 2870-2872 PLEASE TURN OFF ALL CELL PHONES & PAGERS IN COUNCIL CHAMBERS. *H. APPROVE SPECIAL BUDGET WORKSHOP FOR AUG 25, 6:30 P.M. WITH SEPT 2, 6:30 P.M. AS POSSIBLE SECOND DATE, IF NEEDED COMMENTS & SUGGESTIONS FROM CITIZENS PRESENT ON ANY ITEM NOT ON THE AGENDA (LIMIT TO 3 MINUTES PER SPEAKER) CONSIDERATION/ACTION ON AUTHORIZATION TO STAFF FOR THE ABATEMENT OF UNSAFE & NUISANCE CONDITIONS AT 4717 ISLAND VIEW DRIVE, ASSESSING CHARGES AGAINST THE PROPERTY 2873-2986 2987-2997 INFORMATION/MI S CELLANEOU S A. Letter: Orv Burma, LMCD Representative 2998 B. Report: Finance Department - June 2003 2999-3002 C. Letter: Metropolitan Council 3003 D. Reporf: Public Safety Facility project 3004-3013 E. Report: Harbor Wine and Spirits - July 2003 3014 F. 2002 Census Estimate: Metropolitan Council 3015 G. Letter: Sylvia Ogren 3016 H. Article: Missile site cleanup sought 3017-3018 I. Letter: 2003 Street Reconstruction 3019-3020 J. LMCC August Schedule 3021-3022 K. MN Department of Transportation 10 year plan 3023 L. Report: Police Department - June 2003 3024-3074 8. ADJOURN This is a preliminary agenda and subject to change. T/?e Council will set a final agenda at the meeting. More current meeting agendas may be viewed at Ci~ Hall or at the City of g,iound web site. IO00,1§A (q) (q) Operating any water craft, motor vehicle, or powered device, or propelled device, on the open water, or upon the ice of a body of water, in such a manner as to endanger life, limb, or property; (r) Standing upon any street bridge or railroad bridge for purposes of fishing therefrom; (s) Causing to be made any fire on any public beach area or park except in fireplaces designated for that purpose; (0 Any well, hole, or similar excavation which is left uncovered or in such other condition as to constitute a hazard to any child coming on the premises where it is located; (u) Obstruction to the free flow or water in a natural waterway or a public street drain, gutter, or ditch with trash or other materials; (v) The placing or throwing on any street, sidewalk, or other public property or any glass, tacks, nails, bottles, or other substance which may injure any person or animal or damage any pneumatic tire when passing over such substance; (w) The depositing of garbage or refuse on a public right-of-way or on adjacent private property. (ORD.//29-1989 - 6-26-89) 1000.20 to nuisances. precautions to ~/1000.25 Duties of City Officers. The Police Department shall enforce the provisions relating Such officers shall have the power to inspect private premises and take all reasonable prevent the commission and maintenance of public nuisances. Abatement. Whenever the officer charged with enforcement determines that a public nuisance is being maintained or exists on premises in the City, the officer shall notify in writing the owner or occupant of the premises of such fact and shall order that such nuisance be terminated and abated. The notice shall be served in person or by certified or registered mail. If the premises are not occupied and the owner is unknown, the notice may be served by posting it on the premises. The notice shall specify the steps to be taken to abate the nuisance and the time, not exceeding 10 days, within which the nuisance is to be abated. If the notice is not complied with within the time specified, the enfoming officer shall report that fact forthwith to the Council. Thereafter, the Council may, after notice to the owner or occupant and an opportunity to be heard, provide for abating the nuisance by the City. The notice shall be served in the same manner as notice by the enforcing officer is served and shall be given at least seven days before the date stated in the notice when the Council will consider the matter. If'notice is given by posting, at least 10 days shall elapse between the day of posting the notice and the hearing, and a copy of the notice shall be sent by certified mail to the record owner of the subject property. 12/31/98 Mound City Code IOOO.IOA 1000.10A Public Nuisances Affecting Morals and Decency. The following are hereby declared to be public nuisances affecting public morals and decency: (a) All gambling devices, slot machines and punch boards, unless approved as a legal device by the State of Minnesota; (b) Betting, bookmaking, and all apparatus used in such occupations; (c) All houses kept for the purpose of prostitution or promiscuous sexual intercourse, gambling houses, houses of ill fame, and bawdy houses; (d) All places where controlled substances, narcotics, or intoxicating liquor is manufactured or disposed of in violation of law or where, in violation of law, persons are permitted to resort for the purpose of drinking intoxicating liquor or use of controlled substances .or narcotics, or where intoxicating liquor, controlled substances, or narcotics are kept for sale or other disposition in violation of law, and all liquor controlled substances, and narcotics and other property used for maintaining such a place; (e) Any vehicle used for the transportation or intoxicating liquor, or for promiscuous sexual intercourse, or any other immoral or illegal purpose; (0 The use of any fish house, warming house, or other similar structure for any activity listed in (a) through (d) above. 1000.1SA Public Nuisances Affecting Peace and Safety. The following are declared to be public nuisances affecting public peace and safety: (a) All snow and ice not removed from public sidewalks 12 hours after the snow or other precipitation causing the condition has ceased to fall; (b) All wires and limbs of trees which are so close to the surface of a sidewalk or street as to constitute a danger to pedestrians or vehicles, and all limbs of trees closer to the street surface than 15 feet and all limbs of trees closer to the surface of a sidewalk than 8 feet; (c) Obstructions and excavations affecting the ordinary use by the public of streets, alleys, sidewalks, or public grounds except under such conditions as are permitted by this Section or other applicable law; (d) Radio aerials, radio towers, television antennae, television towers or satellite dishes erected or maintained in a dangerous manner; 2 12/31/98 Mound City Code lOl)O, lSA (e) (e) Any use of property abutting on a public street or sidewalk or any use of a public street or sidewalk which causes large crowds of people to gather, obstructing traffic and the free uses of the streets or sidewalks; (0 All hanging signs, awnings, and other similar structures over streets and sidewalks, so situated so as to endanger public safety, or not constructed and maintained as provided by this Section; (g) The allowing of rain water, ice, or snow to fall from any building or structure upon any street or sidewalk or to flow across any sidewalk; (h) Waste water cast upon or permitted to flow upon streets or other public property; /~ (i) Accumulations in the open of discarded or disused machinery, household appliances, automobile bodies, or other materials, in a manner conducive to the harboring of rats, mice, snakes, or vermin, or to fire, health, or safety hazards from such accumulation or from the rank growth of vegetation among the items so accumulated; Noxious weeds, as that term is defined in Section 18.171 of Minnesota Statutes, and any excessive growth of other weeds; excessive growth of weeds means weeds or grass which are 12 inches or more in height; (k) Any wire, except clothes line wire, which is strung less than 15 feet above the surface of the ground; (1) (m) Any fence or other structure maliciously erected or maintained for the purpose of annoying the owners or occupants of adjoining property; All buildings, walls, and other structures which have been damaged by fire, decay, or otherwise, and which are so situated as to endanger the safety of the public; (n) All dead standing trees which present a hazard to like or property, all elm or other trees found harboring the Dutch elm beetle, all dead standing elm wood, and all cut elm or other wood found harboring the Dutch elm beetle; (o) All dangerous, unguarded machinery, including derelict autos, derelict boats, and derelict refrigerators and freezers, in any public place, or so situated or operated on private property as to attract the public; (p) Swimming in a channel or jumping or diving from a channel bridge; 3 12/31/98 Mound City Code 350.705 The standards shall also apply to existing development where so stated. The City Manager shall he responsible for enforcing the standards. Before any building permit is approved, the Zoning Administrator shall determine whether the proposed use will conform to the performance standards. The applicant shall supply all data necessary to demonstrate such conformance. v/~3,q0,710 Exterior Storage. In residential districts, all materials and equipment shall be stored within a building or fully screened so as not to be visible from adjoining properties, except for the following: laundry drying, recreational vehicles, and recreation equipment (see definitions in Subsection 350.310), construction and landscaping materials and equipment currently (within a period of 30 days) being used on the premises, off-street parking of licensed and operative passenger automobiles and pick-up tracks. Storage of recreational vehicles shall be subject to the following: Subdo 1. Storage of recreation vehicles shall be considered either transient or seasonal. Transient storage is defined as the placement of recreational vehicles for periods not exceeding fourteen (14) consecutive days for a specific purpose such as active maintenance or short term living quarters for visitors. Transient storage is permitted providing that it complies with all other sections of the Mound Code of Ordinances. Seasonal storage shall comply with all of the provisions stated herein. Subd. 2. Recreational vehicles may be stored on private property in yard areas consistent with the following setbacks: Front yard - Front yard parking prohibited if over the curb line or in such a manner as to block or impede the safe flow of traffic on the abutting roadway. B. Side yard - Five (5) feet from the property line. C. Rear yard - Five (5) feet from the property line. Subd. 3. Stored vehicles shall be currently registered to, owned by, leased to or rented to the owner or renter of the property, and must display proper license. Subd. 4. Storage of'recreational vehicles shall be limited to no more than one (1) vehicle for every fifteen hundred (1500) square feet of lot area up to a maximum of seven (7) vehicles. 90 215100 5341 Maywood Road Mound, MN 55364 (952) 472-3190 Memorandum To: Honorable Ma~ From: Sarah Smit/..~--~,~~'''''''-''''~ Date: 7/21/2003 City Code Amendment - Enactment of Franchise Fee on Centerpoint Energy Minnegasco As the City Council is aware, the Mound City Council adopted a new gas franchise ordinance in 2002 which includes a provision to allow for the collection of franchise fees. In short, a franchise fee is charged to the utility by the municipality and subsequently is passed through to the customer and/or consumer on the monthly bill. As part of the City's recent budget discussions associated with cuts in Local Government Aid (LGA), the City Council expressed support for the enactment of both gas and electric franchise fees in the amount of $2.00 per meter for residential and commercial customers. For your review and consideration, a draft ordinance to adopt a gas franchise fee schedule has been included. So as to allow for timely processing of the ordinance, City staff is proposing to add this time to the agenda for the July 22, 2003 meeting. Please note that Exhibit A as referenced in the ordinance is being prepared by Arne Hendrickson of Centerpoint Energy Minnegasco and is forthcoming. In the event you have any questions, please do not hesitate to contact either City Manager Kandis Hanson or myself. ORDINANCE NO. CITY OF MOUND COUNTY OF HENNEPIN STATE OF MINNESOTA AN ORDINANCE IMPLEMENTING A GAS FRANCHISE FEE ON CENTERPOINT ENERGY MINNEGASCO FOR PROVIDING GAS SERVICE WITHIN THE CITY OF MOUND THE CITY OF MOUND ORDAINS: SECTION 1. The City of Mound Municipal Code Appendix __ reference to the following Special Ordinance. is hereby amended to include Subdivision 1. Purpose. The Mound City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide gas and electric service within the City of Mound. (a) Pursuant to City Ordinance No. __., a Franchise Agreement between the City and CenterPoint Energy Minnegasco, the City has reserved its right to impose a franchise fee on CenterPoint Energy Minnegasco in amount and fee design as agreed. The parties have agreed on a fee as set forth in the fee schedule attached as Exhibit A. Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on CenterPoint Energy Minnegasco under its Gas Franchise in accordance with the schedule attached hereto and made a part of this ordinance, commencing with the CenterPoint Energy Minnegasco's August billing month. The City reserves the right to review the fee for purposes of termination, continuation or modification. The City further retains its rights under Minnesota law during the term of the underlying franchise. Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance with the terms set forth in Exhibit B attached hereto. Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that CenterPoint Energy Minnegasco will surcharge its customers in the City the amount of the fee. Subd. 5. Record Support for Payment. CenterPoint Energy Mirmegasco shall make each payment when due and, if requested by the City, shall furnish a statement of gas usage by each customer class at the time of each payment for the period for the payment was made. CenterPoint Energy Minnegasco shall permit the City's designated representative reasonable access to the company's records for the purpose of verifying such statements. JMS~231049v 1 MU200-95 Subd. 6. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement. Subd. 7. Effective Date of Franchise Fee. Notwithstanding the effective date of this ordinance and notwithstanding any contrary provisions in the Franchise, the effective date of the fee collected Under Subdivision 2 of this ordinance is the later of ten (10) days after the publication or after the sending of written notice enclosing a copy of this adopted ordinance upon CenterPoint Energy Minnegasco by certified mail. It has been agreed to in advance by CenterPoint Energy Minnegasco's representatives that CenterPoint Energy Minnegasco will abide by the provisions of this Subdivision 7. SECTION 2. This ordinance takes effect as provided herein. Read by the City Council of the City of Mound this __ day of .,2003. Read and passed by the City Councilofthe City ofMoundthis__ .,2003. day of , Mayor APPROVED AS TO FORM: , City Clerk/Administrator John Dean, City Attorney JMS-231049v 1 MU200-95 EXHIBIT A CENTERPOINT ENERGY MINNEGASCO GAS FRANCHISE FEE SCHEDULE Class Meter Fee Residential Comm. Firm Non-Demand Comn~ Firm Demand Small Interruptible Large Interruptible Firm Transportation Interruptible Transportation $0.0 $o.o $o.o $o.o $o.o $0.0 $o.o JMS-231049v 1 MU200-95 I Ill EXHIBIT B 1. Fee Collection. The fi-anchise fee shall be payable not less than monthly during complete billing months of the period for which payment is to be made. The franchise fee formula may be changed from time to time; however, the change shall meet the same notice requirernents and the fee may not be changed more often than annually. Such fee shall not exceed any amount which the Company may legally charge to its customers prior to payment to the City. Such fee is subject to subsequent reductions to account for uncollectibles and customer refunds incurred by the Company. The Company agrees to make available for inspection by the City at reasonable times all records necessary to a~_~it the Company's determination of the tianchise fee payments. JMS-171561v7 SH155-77 Page 1 of 1 Kandis M Hanson From: To: Sent: Attach: Subject: "Strommen, James M." <jstrommen@Kennedy-Graven.com> "Kandis Hanson" <KandisHanson@cityofmound.com> Monday, July 21, 2003 2:41 PM 4Y@101 !.DOC ORDINANCE NO This is the correct Mgco fee ordinance. I will resend Exh. B, the payment terms. Mgco provides Exh. A. 7/21/03 Mound City Code 625.00 Section 625 - GAS UTILITY FRANCHISE 625.05 Definitions. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: Subd. 1 City. The City 0f Mound, County of Hennepin, State of Minnesota. Subd. 2. City Utility System. Facilities used for providing public utility service owned or operated by City or agency thereof, including sewer, storm sewer, water service, street lighting and traffic signals, but excluding facilities for providing heating, lighting, or other forms of energy. Subd. 3. Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all or part of the authority to regulate gas retail rates now vested in the Minnesota Public Utilities Commission. Subd. 4. Company. Reliant Energy Minnegasco, a division of Reliant Energy Resources Corporation. a Delaware corporation, its successors and assigns including all successors or assigns that own or operate any part or parts of the Gas Facilities subject to this franchise. Subd. 5. Gas Facilities. Gas transmission and distribution pipes, lines, ducts, fixtures, and all 'necessary equipment and appurtenances owned or operated by the Company for the purpose of providing gas energy for public or pi'ivate use. Subd. 6. Gas. Natural gas, manufactured gas, mixture of natural gas and manufactured gas or other forms of gas energy. Subd. 7. Non-Betterment Costs. Costs incurred~ by Company from relocation, removal or rearrangement of Gas Facilities that do not result in an improvement to the Gas Facilities. Subd. 8. Notice. A writing served by any party or parties on any other party or parties. Notice to Company shall be mailed to Reliant Energy Minnegasco, V.P., Regulatory & Supply Service, 800 LaSalle Avenue, Minneapoli.s, MN 55402-2006. Notice to the City shall be mailed to the City Manager, City of Mound, 5341 Maywood Road, Mound, MN 55364-1627. Any party may change its respective address for the purpose of this Ordinance by written notice to the other parties. Subd. 9. Public Way. Public right-of-way within the City as defined in Minn. Stat. § 237.162, subd. 3. Subd. 10. Public Ground. Land owned or otherwise controlled by the City for park, open space or similar public purpose, which is held for use in common by the public. 1 7/21/02 Mound City Code 625.10 625.10 ADOPTION OF FRANCHISE. Subd. 1. Grant of Franchise. City hereby grants Company, for a period of 20 years from the date this Ordinance is passed and approved by the City, the right to import, manufacture, distribute and sell gas for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. This right includes the provision of Gas that is (i) manufactured by the Company or its affiliates and delivered by the Company, (ii) purchased and delivered by the Company or (iii) purchased from another source by the retail customer and delivered by the Company. For these purposes, Company may construct, operate, repair and maintain Gas Facilities in, on, over, under and across the Public Ways and Public Grounds, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject however, to such lawful regulations as may be adopted by separate ordinance and as currently exist under City Ordinance 570, codified as Section 7.17 ("Section 7.17"). The Company shall be notified 60 days in advance of proposed changes to Section 7.17. The City and Company shall negotiate in good faith to reach mutually acceptable changes. If the City and Company are unable to agree, disputes will be handled under the terms of Section 2.5 of this Ordinance. If a provision of Section 7.17 conflicts with a provision on the same subject in this Ordinance, this Ordinance will control. Subd. 2. Effective Date; Written Acceptance. This, franchise shall be in force and effect from and after its passage of this Ordinance and publication as required by law and its acceptance by Company. If Company does not file a written acceptance with the City within 90 Days after the date the City Council adopts this Ordinance, or otherwise places the City on written notice, at any time, that the Company does not accept all terms of this franchise, the City Council by resolution may either repeal this ordinance or seek its enforcement in a court of competent jurisdiction. Subd. 3. charged by Commission Service and Gas Rates. Company for gas service The service to be provided and the rates to be in City are subject to the jurisdiction of the Subd. 4. Publication Expense. The expense of publication of this Ordinance shall be paid by Company. Subd. 5. Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days r)f the wriffen Mound City Code 62~5.10, Subd. 5 with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief permitted by law. Sub& 6. Continuation of Franchise. If the City and the Company are unable to agree on the terms of a new franchise by the time this franchise expires, this franchise will remain in effect until a new franchise is agreed upon, or until 90 days after the City or the Company serves written Notice to the other party of its intention to allow the franchise to expire. 625.15 LOCATION~ OTHER REGULATIONS. Subd. 1. Location of Facilities. Subject to regulation under Section 7.17, Gas Facilities in the Public Way shall be located, constructed,, and maintained so as not to disrupt normal operation of any City Utility System. Gas Facilities may be located on Public Grounds as determined by the City. Subd. 2. Restoration of Public Ways and Public Ground. Restoration of the Public Way shall be subject to Section 7,17. After completing work requiring the opening of pUblic Ground, the Company shall restore the Public Ground to as good a condition as formerly existed, and shall maintain the surface in good condition for six (6) months thereafter. All work shall be completed as promptly as weather permits. If Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the 'Public Ground in the said condition and after demand to Company to cure, City shall, after passage of a reasonable period of time following the demand, but not to exceed five days, have the right to make the restoration of the Public Ground at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition' to any other remedy available to the City for noncompliance with this Section. Subd. 3. Waiver of Performance Security. THe City hereby waives any requirement for Company to post a construction performance bond, certificate of insurance, letter of credit or any other form of security or assurance that may be required under Section 7.17 currently or in the future. The City reserves all other rights under Section 7.17 to enforce Company performance requirements for work in the Public Way or Public Ground. Subd. 4 Avoid Damage to Gas Facilities. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Gas Facilities while performing any activity. 3 7/21/02 Mound City Code 625.20 625.20 .RELOCATIONS. Subd. 1. _Relocation of Gas Facilities. Relocation of Gas Facilities in Public Ways shall be subject to Section 7.17. City may require Company at Company's expense to relocate or remove its Gas Facilities from Public Grounds upon a finding by Citythat the Gas Facilities have become or will become a substantial impairment to the existing or proposed public use of the Grounds. Relocation Gas Facilities in Public Ground shall comply with applicable City ordinances consistent with law. Subd. 2. Projects with Federal Fundin.q. Relocation, removal, or rearrangement of any Compa'ny Gas Facilities made necessa'r~ because of the extension into or through City of a federally-aided highway project shall be governed by the provisions of Minnesota Statutes Section 161.46, as supplemented or amended. City shall not order Company to remove or relocate its Gas Facilities when a-Public Way is vacated, improved or realigned because of a renewal or a redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless agreement is made that the reasonable Non-Betterment Costs of such relocation and the loss and expense resulting therefrom will be paid to Company when available to the City. The City need not pay those portions of such for which reimbursement to it is not available. Subd. 3. .No Waiver. The provisions of Section 4~ ;apply only to Gas Facilities constructed in reliance on a permit or franchise from City and Company does not waive its rights under an easement or prescriptive right or State 'or County permit. 625.25 CHANGE IN FORM OF GOVERNMENT. Any change in the form ofgovemment of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. ' 625.30 FRANCHISE Subd. 1. Reservation of Ri.qhts. The City reserves all rights under Minn. Stat. § 216B.36, to require a franchise fee at any time during the term of this franchise. If the City elects to require a franchise fee it shall notify Company and-negotiate in good faith to reach a mutually acceptable fee agreement, which shall be set forth in a separate ordinance and not adopted until at least 60 days after Notice enclosing such proposed ordinance has been served upon the Company by certified mail If the City and Company are unable to agree on a franchise fee or on any terms related thereto, each hereby consents to the jurisdiction of State District Court, Hennepin County, to construe their respective rights under the law, subject to all rights of appeal. Mound City Code 625.35 625.35 LIMITATION ON APPLICABILITY; NO WAIVER. This Ordinance constitutes a franchise agreement between the City and its successors and the Company and its successors and permitted assigns, as the only parties. No provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of any one'or more of the terms hereof, or otherwise give rise to any.cause of action in any person not a party hereto. This franchise agreement shall not be interpreted to constitute a waiver by the City of any of its defenses of immunity or limitations on liability under Minnesota Statutes, Chapter 466. 625.40 AMENDMENT PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended. This Ord. may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 60 days after the effective date of the amendatory ordinance. 625.45 PREVIOUS FRANCHISES SUPERSEDED. This franchise supersedes and replaces previous franchises granted to the Company or its predecessors. Upon Company acceptance of this franchise under Section 2.2, the previous franchise shall terminate. (ORD. 12-2002, 7/21/02) 5 7/21/02 07/22/03 16:10 FAX ! 952 472 4771 TfIO~xS E, CASEY ~01 July 22, 2003 Mound City Council do K~ndis M. Hanson City Manager 5341 Maywood Road Mound, MN 55364 RE: Brunswick Park, Mound, Minnesota PIX): 24-117-24-41-0136 Dear City Council and Ms. Hanson, VIA FAX ONLY (952) 472-0620 Tom Casey 2854 Cambridg4 Mound, MN 55364 'esources as it is. ion of any property tax revenues from a g up this Park property. ncourage other adjoining property owners il refrain from voting on this issue until eive timely written notifcafion of this d for the projected city property tax Th~nk you for your, consideration. Furthermore, I recommend that the City Counc (1) neighbors within at least two blocks of the Park rec matter;, and (2) an accurate written estimate be provide revenues from a private property use. no "improvements.") 5. Mound citizens have relatively limited park. 6. The City of Mound will receive a small port: private property use. 7. There is no "public interest" shown for givil 8. Voting in favor of giving up this Park may e to try the same thing with other public land. h has come to my attention just today that the ,~ity Coundl is being asked to consider giving up a City Park located on Brunwick Road. As gar as I know, no one in the neighborhood (except perhaps adjoining property owners) received x~tte~l notification of this proposal, I recommend that the City Coundl vote t° retain this Park for the following reasons: 1. Once given up, the Park is gone forever. / 2. The Park is a neighborhood asset, a place fc~r children and others to ,,play. Eve,n, though some homes nearby have no children, these ho,,gses are in the relatively affordable housing price range and will likely turn over (eventually) to younger families with small children. 3. Although the Park needs some maintenance]attention, it provides large shade trees along with the opportunity for a natural understory, if~ot used for a play area.. 4. A Park should never Im given up just because it needs to be "cleaned up." It could be placed in the Adopt-A Green Space Program. (I'm sulpfised that staff stated "... the area would be never be developed as a ParE" It could be a "passi, re" park that needs little maintenance and COUNCIL BRIEFING July 22, 2003 Events Schedule: Don't For~ July 22 - 6:30 - HRA regular meeting July 22 - 7:30 - CC regular meeting July 24 - 7:00 - Music in the Park July 31 - 5:00 - Luau employee appreciation event Aug 7 - 7:00 - Music in the Park Aug 12 - 6:30 - HRA regular meeting Aug 12 - 7:30 - CC regular meeting Aug 26 - 6:30 - HRA regular meeting Aug 26 - 7:30 - CC regular meeting Upcoming Absences Aug 13-18 Kandis Hanson Vacation Ci~. Hall Closed Sept 1 Labor Day Other to construction of the public safety facility, parking, deliveries and utility bill drops over the next 2-3 will take place from the Maywood Road side of City Hall. Staff, council members and commissioners should park on Cypress. The door on that side of the building will be unlocked during that time. The deadline for the appreciation July 31 luau at Mound Bay Park has been extended to July 30. Everyone is reminded to submit their registration for the event. New forms have been provided. MOUND CITY COUNCIL MINUTES JULY 8, 2003 The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on Tuesday, July 8, 2003, at 7:30 p.m. in the council chambers of city hall. Members Present: Mayor Pat Meisel; Councilmembers Bob Brown, Mark Hanus, David Osmek and Peter Meyer. Others Present: City Attorney John Dean, Acting City Clerk Bonnie Ritter, Community Development Director Sa Alcon, Tom Stokes, Bruce Reno, Ann Eberhart, Mark Businaro, City ~ith, Jim Prosser, Chuck Consent Agenda: Afl items listed under the routine in nature by the Council and will be ena~ separate discussion on these items unless a which event the item will be removed from normal sequence. ~,nda ar~ a roll call ;ilmember or .da and to be will be no ~uests, in ;din 1. OPEN MEETING Mayor Meisel called the meeting :34 p.m 2. PLEDGE OF ALLEGIANCE 3. APPROVE AGEN MOTION by Motion carried. )prove the agenda. All voted in favor. 3. CONSENT AGE! Osmek of item 3 by Brown Up¢ call vote, all, approve the consent agenda as amended. Motion carried. Ap minutes ORDIN, THE ClT~ PROPERTIE June 24, 2003 regular meeting. laims in the amount of $360,168.15. i-2003: AN ORDINANCE OF THE CITY COUNCIL OF IND APPROVING THE REZONING OF CERTAIN THE PURPOSE OF IMPLEMENTING THE MOUND COMPREHENSIVE PLAN (removed) 3D. COMPREHENSIVE PLAN AMENDMENTS CONSISTENT WITH M.S.S. Osmek asked about Fairview and Chateau Lane with regard to the comp plan, as discussed at the last meeting. Sarah Smith explained that the Council referred this item back to the Planning Commission and because the parcels in question were not 1 -2793- Mound Council Minutes - July 8, 2003 rezoned, the comp plan will reflect the present Iow density and will be on a future agenda. MOTION by Osmek, seconded by Brown to adopt the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 03-64: RESOLUTION ADOPTING LAND USE PLAN AMENDMENTS FOR CERTAIN PROPERTIES AS GUIDED COMPREHENSIVE PLAN, 5. COMMENTS AND SUGGESTIONS FROM CITIZE NOT ON THE AGENDA Mark Smith of 4665 Island View Drive expressed Island View Drive, that has been in terrible disr have imploded, there is miscellaneous junk abandoned. He also stated that the residence. The Community Services Officer the process of being cleaned up. Smith jusl completed and the issue of the bo~ being Sarah Smith stated that they 's Department and the City Manager maffer comes before the council °r g( "NT ON ANY ITEM over th~ ~erty at 47i 7 over 2 years garage walls 'here and the house )een has been as a on this case i~nd it is in ~ake sure that the clean-up is a residence is resolved. that City Staff, the Police of action - whether the f. Mark Smith stated great member of is unbelievable, and a !ugh job and does it very well. 6. PUBLIC HEARI Case #0, Sarah conti of-w as a part of l the app revise his s permit apl - CUP Amendment amendme uest, stating that this hearing is to resolve the issue of whether a piece of property ~. After research it is determined that it is right - recommendation they suggest that f to reflect these conditions as well as remit, upon building verification. Mayor Meisel received, closed public hearing at 7:45 p.m. and upon no comments · ing at 7:46 p.m. MOTON BY Hanus, seconded by Osmek to adopt the following resolution as amended. All voted in favor. Motion carried. RESOLUTION NO. 03-65: RESOLUTION TO APPROVE A CONDITIONAL USE PERMIT AMENDMENT TO ALLOW CONSTRUCTION OF A TWO-STORY ADDITION TO THE ATTACHED TWINHOME LOCATED AT 2851 TUXEDO BOULEVARD, P & Z CASE #03-24. PID #19-117-23-31-0119. 2 -2794- Mound Council Minutes - July 8, 2003 7. REQUEST FOR EXTENSION OF MOUND HARBOR RENAISSANCE PRELIMINARY DEVELOPERS AGREEMENT Mayor Meisel stepped down as Mayor because she and her husband own property in the proposed redevelopment district. Acting Mayor Hanus gave an overview of the request as it was discussed in full earlier in the evening at the HRA meeting. MOTION by Brown, seconded by Osmek to grant a 120 5, 2003, to the Preliminary Developers Agreement with Development, LLC, with the following timeline; within available to the HRA, within 90 days have the hotel Bloomquist, and within 120 days have the financi presenting monthly updates during the 120 second amendment to the Preliminary Renaissance Development, LLC, that will in favor. Motion carried. strategie sion. Staff is Agreement withMo~ )rate stated lsion, until November Renaissance gap options ~ce with Rick as well as to prepare a larbor All voted Mayor Meisel returned to preside balance meeting. 8. DESIGNATION OF CERTAIN BI WITHIN DEVELOPMNT DISTRICT N~ It was noted that this MOTION by favor. Motion SUBSTANDARD meeting. opt the following resolution. All voted in WITI IGNATING CERTAIN BUILDINGS AS PROPOSED REDEVELOPMENT PRO 9. C SAFE Police Chi discussion Kurtz lNG EXECUTION OF AGREEMENT FOR ' pROGRAM the proposed grant agreement to the Council, and the aspects of the program and the program budget. MOTION by Meye proposed. Motion di ~e City of Mound.join the Safe and Sober Campaign as for lack of a second. 10. CONSIDERATION/ACTION DIRECTING STAFF REGARDING 2 A.M. BAR CLOSING It was noted that the current City Code states that hours of operation for liquor establishments is according to State Statute, which means that now bars have the option to be open until 2 a.m. unless the code is revised. 3 -2795- Mound Council Minutes - July 8, 2003 Osmek feels that each business should be able to decide if they want to be open until the allowed 2 a.m. MOTION by Brown, seconded by Meyer to direct staff to prepare an ordinance that would amend the City Code to the affect that bar closing in the City of Mound will be 1:00 a.m. The following voted in favor: Brown, Hanus, Meisel a~[d Meyer. The following voted against: Osmek. Motion carded. The ordinance will be on the next agenda for considerat~~ 11. INFORMATION/MISCELLANEOUS A. M~s to Sta~ B. Newsletter: Gillespie Center C. LMCD Correspondence D. Harbor Wine & Spirits Financials for E. Sheriff's Report 12. ADJOURN MOTION by Brown, seconded by C Motion carried. )urn All voted in favor. Attest: pat Meisel 4 -2796- JULY 22, 2003 CITY COUNCIL MEETING 070303SUE $342.23 JULY 070903SUE $2,396.73 JULY CREDIT CARD $1,707.93 JULY 071603S U E $13,050.03 JULY 071703SU E $242.41 JULY 072203SUE $990,085.41JULY TOTAL $1,007,824.74 -2797- CITY OF MOUND Payments 07/03/03 7:45 AM Page 1 Current Period: July 2003 Batch Name Refer 70303 Cash Payment Invoice 070303 Cash Payment Invoice 070303 Cash Payment invoice 070303 Cash Payment Invoice 070303 Transaction Date 070303SUE User Dollar Amt $342.23 Payments Computer Dollar Amt $342.23 VERIZON WIRELESS (P/W) E 101-43100-321 Telephone & Cells E 601-49400-321 Telephone & Cells $0.00 In Balance 07-03 CELL PHONES $115.40 (~7~03 CELL PHONES $21.62 E 602-49450-321 Telephone & Cells 07-03 CELL PHONES $40.06 G 101-22816 Personal Cell Phone 07-03 CELL PHONES $165.15 7/3/2003 Wells Fargo 10100 Total $342.23 Fund Summary 10100 Wells Fargo 101 GENERAL FUND $280.55 601 WATER FUND $21,62 602 SEWER FUND $40.06 $342.23 Pre-Wdtten Check $0.00 Checks to be Generated by the Compute $342.23 Total $342.23 -2798- CITY OF MOUND Payments 07/09/03 10:55 AM Page 1 Current Period: July 2003 Batch Name 070903SUE U~er Dollar Amt $2,396.73 Payments Computer Dollar Amt $2,396,73 $0.00 In Balance Refer 70903 CRIME FREE ASSOC, INTERNA TIO Cash Payment E 101-42110-434 Conference & Training 07-26-31 CONFERENCE AZ $175.00 Invoice 070903 PO 17821 Transaction Date 7/9/2003 Wells Fargo 10100 Total $175.00 Refer 70903 NEXTEL COMMUNICATIONS (FIRE Cash Payment Invoice 070903 Cash Payment Invoice 070903 Transaction Date E 222-42260-321 Telephone & Cells E 222-42260-321 Telephone & Ceils 05-19-03 THRU 06-18-03 952-292-0150 PEDERSON $36.60 05-19-03 THRU 06-18-03 952-292-0502 PALM, MIKE $43.59 6/3012003 Wells Fargo 10100 Total $80.19 Refer 70903 PETTY CASH Cash Payment E 101-42110-210 Operating Supplies REPLENISH PETTY CASH $174.35 Invoice 070903 PO 17820 Transaction Date 7/8/2003 Wells Fargo 10100 Total $174.35 70903 ROBERTS, COLLETTE ash Payment G 101-21715 Flex Plan Medical REIMBURSE MEDICAL EXPENSE $477.68 Invoice 070903 Cash Payment G 101-21716 Flex Plan Dependents REIMBURSE DEPENDENT CARE $971.07 Invoice 070903 Transaction Date 7/8/2003 Wells Fargo 10100 Total $1,448.75 Refer 70903 SPEEDWAY SUPERAMERICA (PAR Cash Payment E 101-41500-212 Motor Fuels $17.20 invoice 070903 Cash Payment E 101-45200-212 Motor Fuels $27.65 Invoice 070903 Cash Payment E 101-45200-212 Motor Fuels $466.05 Invoice 070903 Transaction Date 7/3/2003 Wells Fargo 10100 Total $511.10 Refer 70903 VERIZON WIRELESS (P/W) Cash Payment E 101-43100-321 Telephone & Cells Invoice 070903 Cash Payment E 602-49450-321 Telephone & Cells Invoice 070903 Transaction Date 7/3/2003 THRU 06-26-03 GASOLINE CHARGES THRU 06-26-03 GASOLINE CHARGES THRU 06-26-03 GASOLINE CHARGES $3.67 $3.67 Total $7.34 07-03 CELL PHONES, JOHNSON 07-03 CELL PHONES HARDINA Wells Fargo 10100 -2799- CITY OF MOUND Payments 07/09/03 10:55 AM Page 2 Current Period: July 2003 Fund Summary 10100 Wells Fargo 101 GENERAL FUND $2,312.87 222 AREA FIRE SERVICES $80.19 602 SEWER FUND $3.67 $2,396.73 Pre-Written Check Checks to be Generated by the Compute Total $0.00 $2,396.73 $2,396.73 -2800- CITY OF MOUND Payments 07116103 3:13 PM Page 1 Current Period: July 2003 Batch Name 071603SUE User Dollar Amt $13,050.03 Payments Computer Dollar Amt $13,050.03 $0.00 In Balance Refer 71603 FACKLER, JAMES Cash Payment Invoice 071603 Transaction Date G 101-21715 Flex Plan Medical 7/14/2003 REIMBURSE MEDICAL EXPENSE $210.87 Wells Fargo 10100 Total $210.87 Refer 71603 FRONTIER/CITIZENS COMMUNICA Cash Payment E 609-49750-321 Telephone & Cells 06-03 952-472-0648 $314.67 Invoice 071603 cash Payment 06-03 952-472-0621 $840.28 Invoice 071603 Cash Payment 07-03 952-472-0600 $1,180.66 Invoice 071603 Cash Payment 06-03 952-472-0635 $358.31 Invoice 071603 Cash Payment 06-03 952-472-0635 $358.31 Invoice 071603 Cash Payment 06-03 952-472-0635 $358.32 era voiCe 071603 nsaction Date 7/8/2003 Wells Fargo 10100 Total $3,410.55 Refer 71603 HOFF, KATIE Cash Payment E 101-45200-210 Operating Supplies REIMBURSE DIGITAL CAMERA $163.96 Invoice 071603 Transaction Date 7/14/2003 Wells Fargo 10100 Total $163.96 Refer 71603 METRO PLAINS DEVELOPMENT C lnaSh Asset-Buildings LEGAL FEES LIQUOR STORE $7,000.00 ~' Payment G 609-16200 Fixed voice 071603 Transaction Date 7/10/2003 Wells Fargo 10100 Total $7,000.00 E 101-42110-321 Telephone & Cells E 101-41910-321 Telephone & Cells E 101-43100-321 Telephone & Cells E 601-49400-321 Telephone & Cells E 602-49450-321 Telephone & Cells Refer 71603 MINNCOMM PAGING Cash Payment E 222-42260-325 Pagers-Fire Dept. Invoice 20233307030 Transaction Date 71712003 Refer 71603 ROBERTS, COLLETTE Cash Payment Invoice 072203 Transaction Date G 101-21716 Flex Plan Dependents 7/16/2003 07-03 PAGERS $109.68 Wells Fargo 10100 Total $109.68 REIMBURSE DEPENDENT CARE $227.25 Wells Fargo 10100 Total $227.25 Refer 71603 UNIFORMS LIMITED Cash Payment G 101-22803 Police Reserves PATCHES $200.00 Invoice 179930 Transaction Date 7/14/2003 Wells Fargo 10100 Total $200.00 71603 VERIZON WIRELESS (FIRE~FIN) Payment E 101-41500-321 Telephone & Cells 08-03 912-269-9058 $8.00 Invoice 071603 Cash Payment E 101-43100-321 Telephone & Cells 08-03 612-590-4351 P/W ON CALL $53.21 invoice 071603 -2801 - CITY OF MOUND Payments 07/16/03 3:13 PM Page 2 Current Period: July 2003 Cash Payment E 601-49400-321 Telephone & Cells 08-03 612-590-4351 P/W ON CALL $53.21 Invoice 071603 Cash Payment E 602-49450-321 Telephone & Cells 08-03 612-590-4351 P/W ON CALL $53.21 Invoice 071603 Cash Payment E 222-42260-321 Telephone & Cells 08-03 612-723-7560 MOUND FIRE $0.48 Invoice 071603 Cash Payment E 222-42260-321 Telephone & Cells 08-03 612-751-3572 ENGINE #18 $0.48 Invoice 071603 Cash Payment E 222-42260-321 Telephone & Cells 08-03 612-751-3573 MOUND FIRE $7.17 Invoice 071603 Cash Payment E 222-42260-321 Telephone & Cells 08-03 612-875-4502 RESCUE TRUCK $8.00 Invoice 071603 Cash Payment E 101-41310-321 Telephone & Cells 08-03 612-240-5244 CREDIT -$15,95 Invoice 071603 Transaction Date 7/14/2003 Wells Fargo 10100 Total $167.81 Refer 71603 XCEL ENERGY Cash Payment E 609-49750-381 Electric Utilities Invoice 0895-951-498-17 Transaction Date 7/14/2003 06-03 SERVICE Wells Fargo $1,559.91 10100 Total $1,559.91 Fund Summary 101 GENERAL FUND 222 AREA FIRE SERVICES 601 WATER FUND 602 SEWER FUND 609 MUNICIPAL LIQUOR FUND 10100 Wells Fargo $3,226.59 $125.81 $411.52 $411.53 $8,874.58 $13,050.03 Pre-Written Check Checks to be Generated by the Compute Total $0.00 $13,050.03 $13,050.03 -2802- CITY OF MOUND Payments Page I Current Period: July 2003 Batch Name 071703SUE Payments Refer 71703 MOUND POST OFFICE Cash Payment E 601-49400-322 Postage Invoice 071703 Cash Payment E 602-49450-322 Postage Invoice 071703 Transaction Date 7/17/2003 User Dollar Amt $242.41 Computer Dollar Amt $242.41 $0.00 In Balance UTILITY BILLING POSTAGE UTILITY BILLING POSTAGE Wells Fargo 10100 $121.20 $121.21 Total $242.41 Fund Summary 10100 Wells Fargo 601 WATER FUND $121.20 602 SEWER FUND $121.21 $242.41 Pre-Written Check Checks to be Generated by the Compute Total $0.00 $242.41 $242,41 -2803- CITY OF MOUND Payments 07/17/03 3:50 PM Page I Current Period: July 2003 Batch Name 072203SUE User Dollar Amt $990,085.41 Payments Computer Dollar Amt $990,085.41 Refer 72203 3M COMPANY E 101-43100~226 Sign Repair Materials 7/8/2003 Cash Payment Invoice tp33096 Transaction Date $0.00 In Balance PRESPACE TAPE $31.06 Wells Fargo 10100 Total $31.06 $304.59 $1,260.96 $404.70 $2,140.00 $3~030,00 $1,690.00 $1,830.00 $780.00 $4,000.0O $730.00 Refer 72203 A+ CLEANING CONTRACTORS, IN Cash Payment E 609-49750-460 Janitorial Services 06-03 CLEANING SERVICE Invoice 9297 Cash Payment E 101-41910-460 Janitorial Services 06-03 CLEANING SERVICE Invoice 9297 Cash Payment E 101-45200-223 Building Repair Supplies 06-03 CLEANING DEPOT Invoice 9297 Transaction Date 7/17/2003 Wells Fargo 10100 Total $1,970.25 Refer 72203 ABDO EICK AND MEYERS, LLP Cash Payment E 222-42260-301 Auditing and Acct'g Servi AUDIT ENDING 01-31-02 Invoice 210617 Cash Payment E 609-49Z50-301 Auditing and Acct'g Servi AUDIT ENDING 01-31-02 Invoice 210617 Cash Payment E 601-49400-301 Auditing and Acct'g Servi AUDIT ENDING 01-31-02 Invoice 210617 Cash Payment E 602-49450-301 Auditing and Acct'g Servi AUDIT ENDING 01-31-02 Invoice 210617 Cash Payment E 281-45210-301 Auditing and Acct'g Servi AUDIT ENDING 01-31-02 Invoice 210617 Cash Payment E 101-41500-301 Auditing and Acct'g Servi AUDIT ENDING 01-31-02 Invoice 210617 Cash Payment E 670-49500-300 Professional Srvs AUDIT ENDING 01-31-02 Invoice 210617 Transaction Date 7/17/2003 Wells Fargo 10100 Total $14,200.00 Refer 72203 ACTION RADIO AND COMMUNICA Cash Payment E 101-43100-404 Repairs/Maint Machinery STROBE $43.67 Invoice 8767 Cash Payment E 601-49400-404 Repairs/Maint Machinery STROBE $43.67 Invoice 8767 Cash Payment E 602-49450-404 Repairs/Maint Machinery STROBE $43.66 Invoice 8767 Transaction Date 7/8/2003 Wells Fargo 10100 Total $131.00 Refer 72203 ALBRECHT, JAMES Cash Payment G 101-22923 4701 Aberdeen Road Varian REFUND ESCROW ACCOUNT $368.50 Invoice 072203 Transaction Date 7/3/2003 Wells Fargo 10100 Total $368.50 Refer 72203 ALLIED MECHANICAL SYSTEMS Cash Payment E 496-46580-300 Professional Srvs 06-30-03 PUBLIC SAFETY BUILDING $28,311.00 Invoice 072203 -2804- CITY OF MOUND Payments 07/17/03 3:50 PM Page 2 Current Period: July 2003 Transaction Date 7/15/2003 Wells Fargo 10100 Total $28,311.00 Refer 72203 AMCON Cash Payment Invoice 2469 Transaction Date E 496-46580-300 Professional Srvs 7/17/2003 06~03 PUBLIC SAFETY BUILDING $16,071.55 Wells Fargo 10100 Total $16,071.55 Refer 72203 APPARENTLY GRAPHIC, LTD Cash Payment G 609-16200 Fixed Asset-Buildings TENANT SIGNAGE Invoice 911225 Transaction Date 7/14/2003 Wells Fargo 10100 Refer 72203 ARCTIC GLACIER PREMIUM ICE Cash Payment E 609-49750-255 Misc Merchandise For R ICE Invoice 387319509 Cash Payment E 609-49750-255 Misc Merchandise For R ICE Invoice 387319209 Cash Payment E 609-49750-255 Misc Merchandise For R ICE Invoice 387318611 Cash Payment E 609-49750-255 Misc Merchandise For R ICE Invoice 387318407 Cash Payment E 609-49750-255 Misc Merchandise For R ICE 387318816 Payment E 609-49750-255 Misc Merchandise For R ICE invoice 387317109 Transaction Date 7/17/2003 Wells Fargo Refer 72203 BALBOA CENTER LIMITED PARTN Cash Payment E 496-46580-412 Building Rentals 08-03 FIRE STATION TEMP RENTAL SPACE $4,357.75 Invoice 072203 Transaction Date 7/17/2003 Wells Fargo 10100 Total $4,357.75 Refer 72203 BA YSIDE FLORAL Cash Payment G 101-22808 Adopt A Green Space DEPOT BLOOMING PLANTS $447.30 Invoice 23213 Transaction Date 7/10/2003 Wells Fargo 10100 Total $447.30 Refer 72203 BELLBOY CORPORATION Cash Payment E 609-49750-255 Misc Merchandise For R MISCELLANEOUS Invoice 37268300 Cash Payment E 609-49750-251 Liquor For Resale LIQUOR Invoice 26862600 Cash Payment E 609-49750-251 Liquor For Resale LIQUOR Invoice 26805900 Transaction Date 7/17/2003 Wells Fargo Refer 72203 BFI OF MINNESOTA, INC. Cash Payment E 101-45200-384 Refuse/Garbage Dispos invoice 1-0200-1307149- Cash Payment E 222-42260-384 Refuse/Garbage Dispos '~voice 1-0200-1307032- Payment E 609-49750-384 Refuse/Garbage Dispos Invoice %0200-1307131- $801.45 Total $801.45 $77.08 $105.04 $316.96 $143.28 $96.72 $148.04 10100 Total $887.12 $308.22 $1,857.00 $3,147.00 10100 Total $5,312.22 06-03 GARBAGE SERVICE/ROLL OFF 06-03 GARBAGE SERVICE 06-03 GARBAGE SERVICE $285.36 $67.01 $17.76 -2805- CITY OF MOUND Payments 07/17/03 3:50 PM Page 3 Current Period: July 2003 Cash Payment E 101-43100-384 Refuse/Garbage Dispos Invoice 1-0200-1307131- Cash Payment E 601-49400-384 Refuse/Garbage Dispos Invoice 1-0200-1307131- Cash Payment E 602-49450-384 Refuse/Garbage Dispos Invoice 1-0200-1307131- Cash Payment E 101-43100-384 Refuse/Garbage Dispos Invoice 1-0429-8003972- Transaction Date 7/8/2003 06-03 GARBAGE SERVICE 06-03 GARBAGE SERVICE 06-03 GARBAGE SERVICE 06-03 GARBAGE SERVICE Wells Fargo 10100 $31.66 $31.66 $31.67 $20.39 Total $485.51 Refer 72203 BIFFS, /NC PORTABLE RESTRO0 Cash Payment E 101-45200-410 Rentals (GENERAL) Invoice W195035 Cash Payment E 101-45200-410 Rentals (GENERAL) Invoice W195034 Transaction Date 7/14/2003 06-11-03 THUR 0718-03 PORTABLE $434.52 RESTROOMS MOUND BAY PARK 06-11-03 THRU 07-18-03 CENTERVIEW $234.26 BEACH Wells Fargo 10100 Total $668.78 Refer 72203 BLACKOWIAK AND SON ROLLOFF Cash Payment E 496-46580-300 Professional Srvs 06-03 ROLLOFFS $390.00 Invoice 10146841 Transaction Date 7/17/2003 Wells Fargo 10100 Total $390.00 Refer 72203 BRAND NETWORKING Cash Payment E 101-42110-400 Repairs & Maint Contract REPAIR HARD DISK $146.07 Invoice 15672 Transaction Date 7/7/2003 Wells Fargo 10100 Total $146.07 Refer 72203 BUREAU OF CRIMINAL APPREHE Cash Payment E 101-42110-400 Repairs & Maint Contract APR,MAY,JUNE CONNECT CHARGE $630.00 Invoice P07 MN02713003L Transaction Date 7/17/2003 Wells Fargo 10100 Total $630.00 Refer 72203 CARDIAC SCIENCE Cash Payment E 101-42110-210 Operating Supplies POWERHEART BATTERY $167.79 Invoice 081005 PO 17819 Transaction Date 7/17/2003 Wells Fargo 10100 Total $167.79 Refer 72203 CARQUEST OF NAVARRE Cash Payment E 101-43100-404 Repairs/Maint Machinery BRAKE ROTOR $525.13 Invoice 072203 Transaction Date 7/17/2003 Wells Fargo 10100 Total $525.13 Refer 72203 CENTERPOINT ENERGY (MINNEG Cash Payment E 101-45200-383 Gas Utilities 05-16-03 THRU 06-17-03 #543-000-053-000 $36.83 Invoice 072203 Cash Payment E 101-45200-383 Gas Utilities 05-16-03 THRU 06-17-03 #543-001-095-800 $51.02 Invoice 072203 Cash Payment E 101-41910-383 Gas Utilities 05-16.03 THRU 06-17-03 #543-001-853-000 $223.79 Invoice 072203 Cash Payment E 101-43100-383 Gas Utilities 05-16-03 THRU 06-17-03 #543-001-972-603 $27.62 Invoice 072203 -2806- CITY OF MOUND Payments Page 4 Current Period: July 2003 Cash Payment E 601-49400-383 Gas Utilities 05-10-03 THRU 06-17-03 #543-001-972-~03 ,$15.70 Invoice 072203 Cash Payment E 602-49450-383 Gas Utilities 05-16-03 THRU 06-17-03 #543-001-972-603 $19.46 Invoice 072203 Transaction Date 7/10/2003 Wells Fargo 10100 Total $374.42 Refer 72203 CHADWICK AND MERTZ Cash Payment E 101-41600-304 Legal Fees 06-03 PROSECUTION SERVICES $4,872.00 Invoice 072203 Transaction Date 7/17/2003 Wells Fargo 10100 Total $4,872.00 Refer 72203 CHAMPION AUTO Cash Payment E 101-45200-409 Other Equipment Repair SPARK PLUGS $15.91 Invoice D204518 Cash Payment E 101-45200-404 Repairs/Maint Machinery V-BELT $11.08 Invoice D205228 Cash Payment E 101-45200-210 Operating Supplies GUAGE DUAL FOOT $19.16 Invoice D207025 Transaction Date 7/10/2003 Wells Fargo 10100 Total $46.15 Refer 72203 COCA COLA BOTTLING-MIDWEST Cash Payment E 609-49750-254 Soft Drinks/Mix For Resa MIX $345.92 ra V°ice 6346~190 nsaction Date 7/17/2003 Wells Fargo 10100 Total $345.92 Refer 72203 COMPUTER CHEQUE Cash Payment E 609-49750-400 Repairs & Maint Contract 06-03 CHECK VERIFICATION $54.50 Invoice 106850503-B Transaction Date 7/17/2003 Wells Fargo 10100 Total $54.50 Refer 72203 CONCO, INCORPORATED E 455-46381-600 Debt Srv Principal 08-03 PRINCIPLE TRUE VALUE Cash Payment $554.55 Invoice 072203 Cash Payment E 455-46381-611 Bond Interest 08-03 INTEREST TRUE VALUE $407.29 Invoice 072203 Transaction Date 7/17/2003 Wells Fargo 10100 Total $961.84 Refer 72203 CONCRETE CUTTING AND CORIN Cash Payment E 101-45200-409 Other Equipment Repair BLOWER REPAIR $32.66 Invoice 41271 Transaction Date 7/15/2003 Wells Fargo 10100 Total $32.66 Refer 72203 COPY IMAGES, INCORPORATED Cash Payment E 101-41910-400 Repairs & Maint Contract 06-03 COPY MAINTENANCE $340.80 Invoice 36950 Transaction Date 7/17/2003 Wells Fargo 10100 Total $340.80 Refer 72203 DA Y DISTRIBUTING COMPANY Cash Payment E 609-49750-252 Beer For Resale BEER $32.00 Invoice 226739 :ash Payment E 609-49750-252 Beer For Resale BEER $883.00 226728 Cash Payment E 609-49750-252 Beer For Resale BEER $176~00 Invoice 226518 -2807- CITY OF MOUND Payments 07/17/03 3:50 PM Page 5 Current Period: July 2003 Cash Payment E 609-49750-252 Beer For Resale BEER $18.40 Invoice 225889 Cash Payment E 609-49750-252 Beer For Resale BEER $1,613.30 Invoice 225879 Cash Payment E 609-49750-252 Beer For Resale BEER $84.20 Invoice 225138 Cash Payment E 609-49750-252 Beer For Resale BEER $3,397.95 Invoice 225124 Cash Payment E 609-49750-252 Beer For Resale BEER $35.30 Invoice 221529 Cash Payment E 609-49750-252 Beer For Resale BEER $963.85 Invoice 221516 Cash Payment E 609-49750-252 Beer For Resale BEER $86.00 Invoice 219822 Cash Payment E 609-49750-252 Beer For Resale BEER $2,126.10 Invoice 219812 Transaction Date 7/17/2003 Wells Fargo 10100 Total $9,416.10 Refer 72203 DIAL A RIDE Cash Payment E 601-49400-328 Employment Advertising TOUR FOR ENGINEER $25.00 Invoice 072203 cash Pa~ment E 602~49450:328E~pl°yment Advertising TOUR FOR ENGINEER $25.00 Invoice 072203 Transaction Date 7/17/2003 Wells Fargo 10100 Total $50.00 Refer 72203 DOSSETT, SINDI Cash Payment E 101-49840-300 Professional Srvs 07-08-03 VIDEO COUNCIL MEETING $20.00 Invoice 072203 Transaction Date 7/11/2003 Wells Fargo 10100 Total $20.00 Refer 72203 E-Z RECYCLING Cash Payment E 670-49500-440 Other Contractual Servic 06-03 CURBSIDE RECYCLING $8,075.25 Invoice 5362 Transaction Date 7/8/2003 Wells Fargo 10100 Total $8,075.25 Refer 72203 EAST SIDE BEVERAGE Cash Payment E 609-49750-252 Beer For Resale BEER $3,478.05 Invoice 425395 Cash Payment E 609-49750-252 Beer For Resale BEER $9.50 Invoice 422451 Cash Payment E 609-49750-252 Beer For Resale BEER $64.10 Invoice 420335 Cash Payment E 609-49750-252 Beer For Resale BEER $8,847.60 Invoice 420334 Cash Payment E 609-49750-252 Beer For Resale BEER $511.50 Invoice 418171 Transaction Date 7/17/2003 Wells Fargo 10100 Total $12,910.75 Refer 72203 EHLERS AND ASSOCIATES,/NC. Cash Payment E 455-46380-300 Professional Srvs 06-03 MOUND GENERAL $225.00 Invoice 21011 Cash Payment G 101-22908 Mound Harbor Renaissance 06-03 LANDFORM DEVELOPMENT $450.00 Invoice 21012-^ -2808- CITY OF MOUND Payments 07/17/03 3:50 PM Page 6 Current Period: July 2003 Cash Payment E 455-40380-300 Professional 3rvs 06-03 PROJECT MANAGEMENT $2,137.50 Invoice 21012-B Cash Payment G 101-22908 Mound Harbor Renaissance 06-03 LANDFORM DEVELOPMENT $637.50 Invoic~ 21013 Transaction Date 7/15/2003 Wells Fargo 10100 Total $3,450.00 Refer 72203 EMERGENCY MANAGERS ASSOC. Cash Payment E 101-42110-434 Conference & Training REGISTRATION 09-14-03 $100.00 Invoice 072203 PO 17822 Transaction Date 7/16/2003 Wells Fargo 10100 Total $100.00 Refer 72203 EQUIPMENT SUPPL Y, INCORPOR Cash Payment E 101-41910-401 Repairs/Maint Buildings ADJUSTED THERSTATE, CLEARED FAULT $180,00 CODES Invoice 183375 Transaction Date 7/16/2003 Wells Fargo 10100 Total $180.00 Refer 72203 EXTREME BEVERAGE Cash Payment E 609-49750-254 Soft Drinks/Mix For Resa MIX $64.00 Invoice 132830 Transaction Date 7/17/2003 Wells Fargo 10100 Total $64.00 72203 FIRE CONTROL EXTINGUISHER :ash Payment E i01-43100-230 Shop Materials 2003 ANNUAL SERVICE $176.18 Invoice 77839 Cash Payment E 601-49400-230 Shop Materials 2003 ANNUAL SERVICE $176.18 Invoice 77839 Cash Payment E 602-49450-230 Shop Materials 2003 ANNUAL SERVICE $176.17 Invoice 77839 Cash Payment E 609-49750-409 Other Equipment Repair 2003 ANNUAL SERVICE $183.55 Invoice 072203 Cash Payment E 101-41910-401 Repairs/Maint Buildings 2003 ANNUAL SERVICE $113.92 Invoice 77842 Cash Payment E 101-45200-223 Building Repair Supplies 2003 ANNUAL SERVICE $145.57 Invoice 77841 Cash Payment E 101-42110-219 Safety supplies 2003 ANNUAL SERVICE $9.81 Invoice 77832 Cash Payment E 222-42260-210 Operating Supplies 2003 ANNUAL SERVICE $664.31 Invoice 77840 Transaction Date 7/8/2003 Wells Fargo 10100 Total $1,645.69 Refer 72203 FRONTIER/CITIZENS COMMUNICA Cash Payment E 101-45200-321 Telephone & Cells 06-03 952-472-0646 $19.47 Invoice 072203 Transaction Date 7/15/2003 Wells Fargo 10100 Total $19,47 Refer 72203 G & K SERVICES Cash Payment E 101-43100-218 Clothing and Uniforms 07-01-03 UNIFORMS $31.65 Invoice 006-620040 Payment E 601-49400-218 Clothing and Uniforms 07-01-03 UNIFORMS $31.65 006-620040 Cash Payment E 602-49450-218 Clothing and Uniforms 07-01-03 UNIFORMS $31.66 Invoice 006-620040 -2809- CITY OF MOUND Payments 07/17/03 3:50 PM Page 7 Cash Payment E 101-43100-230 Shop Materials 07-01-03 MATS $21.43 Invoice 006-620040 Cash Payment E 601-49400-230 Shop Materials 07-01-03 MATS $21.43 Invoice 006-620040 Cash Payment E 602-49450-230 Shop Materials 07-01-03 MATS $21.43 Invoice 006-620040 Cash Payment E 222-42260-216 Cleaning Supplies 07-08-03 MATS $53.62 Invoice 626792 Cash Payment E 101-45200-223 Building Repair Supplies 07-08-03 MATS $16.76 Invoice 626793 Cash Payment 07-08-03 MATS $59.51 Invoice 626794 Cash Payment 07-08-03 MATS $47.57 Invoice 626790 Cash Payment 07-08-03 UNIFORMS $28.35 invoice 626791 Cash Payment 07-08-03 UNIFORMS $28.35 Invoice 626791 Cash Payment 07-08-03 UNIFORMS $28.34 Invoice 626791 Cash Payment 07-08-03 MATS $34;21 invoice 626791 Cash Payment 07-08-03 MATS $34.21 Invoice 626791 Cash Payment 07-08-03 MATS $34.21 Invoice 626791 Transaction Date 7/17/2003 Wells Fargo 10100 Total $524.38 Refer 72203 GARY'S DIESEL SERVICE Cash Payment E 601-49400-404 Repairs/Maint Machinery CLUTCH REPAIR $390,96 Invoice 60169 Cash Payment E 602-49450-404 Repairs/Maint Machinery CLUTCH REPAIR $390,95 Invoice 60169 Transaction Date 7/15/2003 Wells Fargo 10100 Total $781.91 Refer 72203 GLENWOOD INGLEWOOD Cash Payment E 222-42260-210 Operating Supplies 06-03 WATER #32345800 $36,42 Invoice 072203 Cash Payment E 101-43100-210 Operating Supplies 06-03 WATER #5158502 $18.20 Invoice 072203 Cash Payment E 601-49400-210 Operating Supplies 06-03 WATER #5158502 $18.20 Invoice 072203 Cash Payment E 602-49450-210 Operating Supplies 06-03 WATER #5158502 $18.20 Invoice 072203 Cash Payment E 101-42110-210 Operating Supplies 06-03 WATER #5158500 $65.00 Invoice 072203 Transaction Date 7/17/2003 Wells Fargo 10100 Total $156.02 Refer 72203 GRIGGS COOPER AND COMPANY Cash Payment E 609-49750-253 Wine For Resale WINE $310.42 Invoice 741913 E 101-41910-460 Janitorial Services E 609-49750-460 Janitorial Services E 101-43100-218 Clothing and Uniforms E 601-49400-218 Clothing and Uniforms E 602-49450-218 Clothing and Uniforms E 101~43100~230 Shop Materials E 601-49400-230 Shop Materials E 602-49450-230 Shop Materials -2810- CITY OF MOUND Payments 07117103 3:50 PM Page 8 Current Period: July 2003 Cash Payment E 609-49750.253 Wine For Resale WINE $0.00 Invoice 741819 Cash Payment E 609-49750-252 Beer For Resale BEER $382.50 Invoice 741788 Cash Payment E 609-49750-253 Wine For Resale WINE $128.00 Invoice 852898 Cash Payment E 609-49750-251 Liquor For Resale LIQUOR $1,441.77 Invoice 739028 Cash Payment E 609-49750-253 Wine For Resale WINE $125.60 Invoice 738548 Transaction Date 7/17/2003 Wells Fargo 10100 Total $2,388.29 Refer 72203 HANSON SPANCRETE MIDWEST, I Cash Payment E 496-46580-300 Professional Srvs 06-30-03 PUBLIC SAFETY BUILDING $361,718.00 Invoice 072203 Transaction Date 7/15/2003 Wells Fargo 10100 Total $361,718.00 Refer 72203 HANSON, KANDIS Cash Payment E 101-41310-321 Telephone & Cells 06-10-03 DSL LINE $39.95 invoice 072203 Cash Payment E 101-41310-321 Telephone & CaRs 07-10-03 DSL LINE $49.95 voice 072203 ansaction Date 7/17!2003 Wells Fargo 10100 Total $89.90 Refer 72203 HAWKINS, INCORPORATED Cash Payment E 601-49400-227 Chemicals 6 CONTAINERS $30.00 Invoice DM 90777 Transaction Date 7/15/2003 Wells Fargo 10100 Total $30.00 Refer 72203 HECKSEL MACHINE SHOP Cash Payment E 101-43100-404 Repairs/Maint Machinery STEEL, ETC $212.66 Invoice 45930 Cash Payment E 601-49400-220 Repair/Maint Supply SHEAR ALUMINUM $14.91 Invoice 45994 Transaction Date 7/8/2003 Wells Fargo 10100 Total $227.57 Refer 72203 HENNEPIN COUNTY INFORMA TIO Cash Payment E 101-41910-400 Repairs & Maint Contract 06-03 NETWORK SUPPORT $36.83 Invoice 23067036 Cash Payment E 101-42110-418 Other Rentals 06-03 RADIO LEASE $1,173.34 invoice 23068019 Cash Payment E 101-42110-418 Other Rentals 06-03 NETWORK SUPPORT $0.00 Invoice 23067036 Transaction Date 7/14/2003 Wells Fargo 10100 Total $1,210.17 Refer 72203 HENNEPIN COUNTY PUBLIC WOR Cash Payment E 601-49400-455 Permits 1ST QTR UTILITY PERMITS $400.00 Invoice UTIL00321 Transaction Date 7/10/2003 Wells Fargo 10100 Total $400.00 cefer 72203 HERC-U-LIFT ~ i ash Payment E 101-43100-220 Repair/Maint Supply HOSE TOUGH COAT $53.76 Invoice 01P7702040 -2811 - CITY OF MOUND Payments 07/17/03 3:50 PM Page 9 Current Period: July 2003 Transaction Date 7/11/2003 Wells Fargo 10100 Total $53.76 Refer 72203 HIGHWAY HANDYMAN PRODUCTS Cash Payment E 101-43100-500 Capital Outlay (GENE~RA APPLICATOR WITH AIR CYLINDERS $1,416.45 Invoice 00002718 PO 17785 Transaction Date 7/15/2003 Wells Fargo 10100 Total $1,416.45 Refer 72203 HOHENSTEINS, INCORPORATED Cash Payment E 609-49750-252 Beer For Resale BEER $1.55 Invoice 305809-B Transaction Date 7/17/2003 Wells Fargo 10100 Total $1.55 Refer 72203 HOISINGTON KOEGLER GROUP, I Cash Payment E 401-46540-300 Professional Srvs 06-03 LOST LAKE GREENWAY CD'S $650.00 Invoice 070803-A Cash Payment E 455-46377-300 Professional Srvs 06-03 CTY RD 15 STREETSCAPE $10,946.84 Invoice 070803-B Cash Payment E 101-42400-300 Professional Srvs 06-03 MISC PLANNING $1,480.28 Invoice 070803-C Cash Payment G 101-22934 1872 Shorewood,#03-22,LaJ 06-03 VARIANCE 03-22 LA JOY $60.00 Invoice 070803-D1 Cash Payment G 101-22918 42XX Lynw0od Coddon ~02 06-03 52XX LYNWOOD CODDON 03-04 . $!60,00 Invoice 070803-D2 Cash Payment G 101-22908 Mound Harbor Renaissance 06-03 LANDFORM DEVELOPMENT $337.60 Invoice 070803-E1 Cash Payment E 455-46377-300 Professional Srvs 06~03 MOUND VISIONS $2,025,60 Invoice 070803-E2 Cash Payment G 101-22908 Mound Harbor Renaissance 06-03 LANDFORM DEVELOPMENT $1,505.40 Invoice 070803-F1 Cash Payment E 455-46380-300 Professional Srvs 06-03 TIF RELATED WORK $1,129.06 Invoice 070803-F2 Transaction Date 7/15/2003 Wells Fargo 10100 Total $18 294.78 Refer 72203 HOME DEPOT/GECF Cash Payment E 101-43100-230 Shop Materials 27 INCH LOPPE $34,02 Invoice 000421/4080752 Transaction Date 7/7/2003 Wells Fargo 10100 Total $34.02 Refer 72203 HUMANE SOCIETY WRIGHT COUN Cash Payment E 101-42110-445 Dog Kennel Fees 04-03 IMPOUND SERVICES $117.50 Invoice 072203 Cash Payment E 101-42110-445 Dog Kennel Fees 05-03 IMPOUND SERVICES $192.50 Invoice 072203 Cash Payment E 101-42110-445 Dog Kennel Fees 06-03 IMPOUND SERVICES $187.50 Invoice 072203 Transaction Date 7/17/2003 Wells Fargo 10100 Total $497.50 Refer 72203 INTERSTATEBATTERYSYSTEMO Cash Payment E 101-43100-404 Repairs/Maint Machinery V4D-7 $212.89 Invoice 20018990 PO 17901 Cash Payment E 601-49400-404 Repairs/Maint Machinery BATTERIES $119,17 Invoice 133751 Transaction Date 7/8/2003 Wells Fargo 10100 Total $332.06 -2812- CITY OF MOUND Payments 07/17/03 3:50 PM Page 10 Refer 72203 ISLAND PARK SKELL Y Cash Payment E 101-43100-404 Repairs/Maint Machinery BATTERY STARTER Invoice 13561 Cash Payment E 101-43100-404 Repairs/Maint Machinery BRAKE FLUID Invoice 13731 Cash Payment E 101-42110-404 Repairs/Maint Machinery HBU AND BRG KIT Invoice 13455 Cash Payment E 101-42110-404 Repairs/Maint Machinery INSTALL DOOR TRIM Invoice 13565 Cash Payment E 101-42110-404 Repairs/Maint Machinery BLOWER MOTOR KIT Invoice 13605 Cash Payment E 101-42110-404 Repairs/Maint Machinery OIL CHANGE Invoice 13624 Cash Payment E 101-42110-404 Repairs/Maint Machinery OIL CHANGE Invoice 13681 Cash Payment E 101-42110-404 Repairs/Maint Machinery R&R 02 SENSOR Invoice 13749 Cash Payment E 10%42110-404 Repairs/Maint Machinery OIL CHANGE Invoice 13759 Cash Payment E 101-42110-404 Repairs/Maint Machinery OIL CHANGE ivoice 13762 ansaction Date 7/11/2003 Wells Fargo 10100 Total $2,176,80 Refer 72203 JERRY'S TRANSMISSION SERVIC Cash Payment E 222-42260-409 Other Equipment Repair REPAIR ENGINE 3208 $509.67 Invoice 0000835 Cash Payment E 222-42260-409 Other Equipment Repair REPAIR ENGINE 3208 $987.81 Invoice 0000931 Transaction Date 7/7/2003 Wells Fargo 10100 Total $1,497.48 Refer 72203 JOHNSON BROTHERS LIQUOR Cash Payment E 609-49750-253 Wine For Resale WINE $2,225.45 Invoice 1583283 Cash Payment E 609-49750-253 Wine For Resale WINE $1,128.25 Invoice 1283282 Cash Payment E 609-49750-251 Liquor For Resale LIQUOR $1,534.84 Invoice 1583281 Cash Payment E 609-49750-254 Soft Drinks/Mix For Resa MIX $61.30 Invoice 1580982 Cash Payment E 609-49750-253 Wine For Resale WINE $522.70 Invoice 1580981 Cash Payment E 609-49750-251 Liquor For Resale LIQUOR $1,350.00 Invoice 1580980 Transaction Date 7/17/2003 Wells Fargo 10100 Total $6,822.54 Refer 72203 JOHNSON, PHYLLIS Cash Payment E 455-46381-600 Debt Sty Principal 08-03 PRINCIPLE TRUE VALUE $292.07 nvoice 072203 Payment E 455-46381-611 Bond Interest 08-03 INTEREST TRUE VALUE $377.04 Invoice 072203 Transaction Date 7/17/2003 , Wells Fargo 10100 Total $669.11 $579.82 $302.31 $519.03 $37.86 $516,34 $25.86 $25,86 $118.00 $25.86 $25.86 -2813- CITY OF MOUND Payments 07/17/03 3:50 PM Page 11 Current Period: July 2003 Refer 72203 JOHNSON, STEVE Cash Payment G 101-22925 6041 Ridgewood, 03-13 John REFUND ESCROW ACCOUNT $110.50 Invoice 072203 Transaction Date 7/8/2003 Wells Fargo 10100 Total $110.50 Refer 72203 KELLEHER CONSTRUCTION, INCO Cash Payment E 496-46580-300 Professional Srvs 06-30-03 PUBLIC SAFETY BUILDING $66,983.00 Invoice 072203 Transaction Date 7/15/2003 Wells Fargo 10100 Total $66,983.00 Refer 72203 KENNEDYAND GRAVEN Cash Payment E 455-46377-300 Professional Srvs 05-03 CTY RD 15 REALIGNMENT $2,204.79 invoice 56935-A Cash Payment E 101-41600-300 Professional Srvs 05-03 R/VV FRANCHISE $184.50 Invoice 56935-B Cash Payment G 609-16200 Fixed Asset-Buildings 05-03 NEW LIQUOR STORE $416.00 Invoice 56935-C Cash Payment G 101-22891 Kells Lane Vacation, J. Paul 05-03 KELLS ROAD VACATION $9.85 Invoice 56935-D1 Cash Payment G 101-22895 Kells Lane Vacation Jeff Paul 05-03 KELLS ROAD VACATION $9.84 Invoice 56935-D2 Cash Payment E 101-41600-300 Professional Srvs $132.00 Invoice 56935-E Cash Payment G 601-16100 Fixed Asset-Land $138.00 invoice 56935-F Cash Payment E 401-43100-300 Professional Srvs $426,77 invoice 56935-G Cash Payment E 101-41600-300 Professional Srvs $210,00 Invoice 56935-H Cash Payment E 101-41600-300 Professional Srvs $936.00 Invoice 56935-1 Cash Payment E 101-41600-312 Legal Police $108.00 Invoice 56935-J1 Cash Payment E 101-41600-300 Professional Srvs $432.37 Invoice 56935-J2 Cash Payment E 101-41600-300 Professional Srvs $324.00 Invoice 56935-K1 Cash Payment E 496-46580-300 Professional Srvs $104.00 Invoice 56935-K2 Cash Payment G 101-22855 MetroPlains Develop 00-64 $36.00 Invoice 56935-L1 Cash Payment G 601-16100 Fixed Asset-Land $36.00 Invoice 56935-L2 Cash Payment E 101-41600-314 Legal PNV $79.80 invoice 56935-L3 Cash Payment E 101-41600-316 Legal P & I $518.94 Invoice 56935-M1 . Cash Payment G 101-22854 Langdon Bay Major Sub-Divi 05-03 LANGDON BAY DEVELOPMENT $666.00 Invoice 56935-M2 Cash Payment G 101-22908 Mound Harbor Renaissance 05-03 LANDFORM DEVELOPMENT $372.00 Invoice 56935-M3 05-03 DREAMWOOD LAWSUIT 05-03 WELL SITE LAND PURCHASE 05-03 SKAALERUD LOT SURVEY 05-03 MOUND FIRE RELIEF, CASEY 05-03 EXECUTIVE 05-03 POLICE LEGAL ISSUES 05-03 ADMINISTRATIVE 05-03 FIRE LEGAL ISSUES 05-03 PUBLIC SAFETY BUILDING 05-03 METRO PLAINS DEVELOPMENT 05-03 WELL SITE LAND PURCHASE 05-03 PUBLIC WORKS 05-03 P/W MISC ISSUES -2814- CITY OF MOUND Payments 07117103 3:50 PM Page 12 Current Period: July 2003 Cash Payment G 101-22942 2851 Tuxedo Blvd #03-24 C 05-03 2851 TUXEDO BLVD $30.00 Invoice 56935-M4 Cash Payment E 101-41600-318 Legal Parks 05-03 PARKS MISC ISSUES $96.00 Invoice 56935-M5 Cash Payment G 101-22854 Langdon Bay Major Sub-Divi 05-03 LANGDON DEVELOPMENT $147.00 Invoice 56935-N1 Cash Payment G 101-22855 MetroPlains Develop 00-64 05-03 METRO PLAINS DEVELOPMENT $75.00 Invoice 56935-N2 Transaction Date 7/8/2003 Wells Fargo 10100 Total $7,692.86 Refer 72203 LAKE MANAGEMENT, INC. Cash Payment E 101-45200-400 Repairs & Maint Contract LAKE SPRAY CONTRACT $3,710.00 Invoice 21703 Transaction Date 7/17/2003 Wells Fargo 10100 Total $3,710.00 Refer 72203 LAKER NEWSPAPER Cash Payment E 101-41110-351 Legal Notices Publishing 07-05-03 COMP PLAN AMEND $47.76 Invoice 699 Cash Payment G 101-22931 2241 Southview Ln,03-10 W 07-05-03 WARA REAL ESTAT $51.74 Invoice 700 Cash Payment E 401-46540-300 Professional Srvs 07-05-03 LOST LAKE GREENWAY $171.14 voice 706 ansaction Date 7/8/2003 Wells Fargo 10100 Total $270.64 Refer 72203 LAKER/PIONEER NEWSPAPER Cash Payment E 609-49750-340 Advertising 06-28-03 LAKER INSERT $331.50 Invoice 00X5 Cash Payment E 609-49750-340 Advertising 07-05-03 LAKER INSERT $331.50 Invoice 00X6 Transaction Date 7/14/2003 Wells Fargo 10100 Total $663.00 Refer 72203 LAWSON PRODUCTS, INC Cash Payment E 101-43100-230 Shop Materials MISCELLANEOUS SUPPLIES $124.67 Invoice 1029407 Cash Payment E 602-49450-230 Shop Materials MISCELLANEOUS SUPPLIES $124.66 Invoice 1029407 Cash Payment E 101-43100-230 Shop Materials MISCELLANEOUS SUPPLIES $13.39 Invoice 1029408 Cash Payment E 601-49400-230 Shop Materials MISCELLANEOUS SUPPLIES $13.39 Invoice 1029408 Cash Payment E 602-49450-230 Shop Materials MISCELLANEOUS SUPPLIES $13.40 Invoice 1029408 Transaction Date 7/15/2003 Wells Fargo 10100 Total $289.51 Refer 72203 LEAGUE MN CITIES INSURANCE T Cash Payment E 101-41110-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $87.06 Invoice 072203 Cash Payment E 101-41310-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $70.13 nvoice 072203 Payment E 101-41500-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $193~46 Invoice 072203 Cash Payment E 101-42110-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $2,256.28 Invoice 072203 -2815- CITY OF MOUND Payments 07/17/03 3:50 PM Page 13 Current Period: July 2003 Cash Payment E 101-42400-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $227.32 Invoice 072203 Cash Payment E 101-43100-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $846.41 Invoice 072203 Cash Payment E 101-45200-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $195.88 Invoice 072203 Cash Payment E 222-42260-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $5,603.21 Invoice 072203 Cash Payment E 609-49750-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $810.13 Invoice 072203 Cash Payment E 601-49400-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $1,165.62 Invoice 072203 Cash Payment E 602-49450-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $1,721.83 Invoice 072203 Cash Payment E 281-45210-151 Worker's Comp Insuranc 3RD QTR WORKS COMP $246.67 Invoice 072203 Transaction Date 7/17/2003 Wells Fargo 10100 Total $13,424.00 Refer 72203 LONG LAKE POWER EQUIPMENT Cash Payment E 101-43100-404 Repairs/Maint Machinery OIL, SPARK PLUG $37.75 Invoice 048008 Transaction Date 7/8/2003 Wells Fargo 10100 Total $37.75 Refer 72203 MADDEN, FRANK AND ASSOClA T Cash Payment E 101-49999-300 Professional Srvs 06-30-03 PROFESSIONAL SERVICES $59.40 Invoice 072203 Transaction Date 7/17/2003 Wells Fargo 10100 Total $59.40 Refer 72203 MARINE COVERS AND INTERIORS Cash Payment G 222-22801 Deposits/Escrow MOORING COVER $538.65 Invoice 1267 Transaction Date 7/15/2003 Wells Fargo 10100 Total $538.65 Refer 72203 MARK VII DISTRIBUTOR Cash Payment E 609-49750-252 Beer For Resale BEER $15.20 Invoice 561110 Cash Payment E 609-49750-252 Beer For Resale BEER $1,732.82 Invoice 561109 Cash Payment E 609-49750-252 Beer For Resale BEER $55.50 invoice 558423 Cash Payment E 609-49750-252 Beer For Resale BEER $110.00 invoice 558422 Cash Payment E 609-49750-252 Beer For Resale BEER $15.20 Invoice 558421 Cash Payment E 609-49750-252 Beer For Resale BEER $3,182.12 Invoice 558420 Cash Payment E 609-49750-252 Beer For Resale BEER $52.50 Invoice 555924 Cash Payment E 609-49750-252 Beer For Resale BEER $6,039.50 Invoice 555923 Transaction Date 7/17/2003 Wells Fargo 10100 Total $11,202.84 Refer 72203 MARLIN'S TRUCKING DELIVERY -2816- CITY OF MOUND Payments 07/17/03 3:50 PM Page Cash Payment Invoice 12817 Cash Payment Invoice 12839 Cash Payment Invoice 12849 Cash Payment Invoice 12871 Cash Payment Invoice 12883 Current Period: July 2003 E 609-49750-265 Freight E 609-49750-265 Freight E 609-49750-265 Freight E 609-49750-265 Freight E 609-49750-265 Freight 06-16-03 DELIVERY CHARGE 06-19-03 DELIVERY CHARGE 06-23-03 DELIVERY CHARGE 06-26-03 DELIVERY CHARGE 06-30-03 DELIVERY CHARGE $11.70 $166.50 $16.20 $272.70 $10.80 Transaction Date 711712003 Wells Fargo 10100 Total $477.90 Refer 72203 MASON-CUTTERS, LANGFORD TO Cash Payment E 496-46580-500 Capital Outlay (GENERA CONCRETE SLAB SAWING $425.00 invoice M20870 Transaction Date 7/17/2003 Wells Fargo 10100 Total $425.00 Refer 72203 MCCOMBS FRANK ROOS ASSOCI 06-03 WESTEDGE STREET IMPROVEMENT Project 07827 06-03 PLANNING MISC ENGINEERING Project 08901 06-03 ZONING MISC ENGINEERING Cash Payment E 401-43100-300 Professional Srvs Invoice 44190 Cash Payment E 101-42400-300 Professional Srvs Onvoice 44191 ash Payment E 101-42400-300 Professional Srvs $2,071.60 $978.50 $257.50 $51.50 $206.00 $1,338.50 $103.00 $305.00 $103.00 $51.50 $103.00 $566.50 $71.00 $378.00 $266.25 $266.25 Invoice 44192 Cash Payment Invoice 44193 Cash Payment Invoice 44194 Cash Payment Invoice 44195 Cash Payment Invoice 44196 Cash Payment Invoice 44197 Cash Payment Invoice 44198 Cash Payment Invoice 44199 Cash Payment Invoice 44200 Cash Payment Invoice 44201 Cash Payment Invoice 44202 Cash Payment Invoice 44203 Cash Payment 44204-A Payment Invoice 44204-B Project 08902 06-03 STREET MISC ENGINEERING Project 08903 06-03 METRO PLAINS DEVELOPMENT Project 12252 06-03 CTY RD 15 RELOCATION Project 12533 06-03 DOWNTOWN TIF DISTRICT Project 12534 06-03 LANGDON BAY DEVELOPMENT Project 12754 E 101-43100-300 Professional Srvs G 101-22855 MetroPlains Develop 00-64 E 455-46377-300 Professional Srvs E 455-46377-300 Professional Srvs G 101-22854 Langdon Bay Major Sub-Divi G 101-22863 6301 Lynwood, 00-41, Baltuti 06-03 6201 LYNWOOD #00-41 Project 12982 E 455-43255-300 Professional Srvs 06-03 MCES LIFT STATION Project 13132 E 401-43100-300 Professional Srvs 06-03 WESTEDGE EXTENSION SOUTH Project 13142 E 455-46380-300 Professional Srvs 06-03 XCEL SUB STATION Project 13190 E 101-45200-500 Capital Outlay (GENERA 06-03 SKATE PARK Project 13207 E 401-43100-300 Professional Srvs 06-03 RETAINING WALL REPLACEMENT Project 13215 E 281-45210-300 Professional Srvs 06-03 DOCK MAP SHORELINE FOOTAGE Project 13223 E 101-42400-300 Professional Srvs 06-03 DOCK MAP SHORELINE FOOTAGE Project 13223 -2817- CITY OF MOUND Payments 07/17/03 3:50 PM Page 15 Current Period: July 2003 Cash Payment Invoice 44205 Cash Payment Invoice 44206 Cash Payment Invoice 44207 Cash Payment Invoice 44208 Cash Payment Invoice 42209 Cash Payment Invoice 42210 Cash Payment invoice 42211 Cash Payment Invoice 42212 Cash Payment Invoice 42213 Cash Payment Invoice 42214 Cash Payment Invoice 44215 Cash Payment Invoice 44216 Cash Payment Invoice 44217 Cash Payment Invoice 44218 Cash Payment E 401-43100-300 Professional Srvs E 401-46540-300 Professional Srvs G 101-22855 MetroPlains Develop 00-64 E 675-49425-300 Professional Srvs E 601-49400-300 Professional Srvs E 101-43100-300 Professional Srvs G 601-16300 Improvements Other Than BI 06-03 WELI_/PUMPHOUSE Project 13313 E 455-46380-300 Professional Srvs 06-03 LONGPRE BLDG DEMO Project 13314 06-03 SKAALERUD LOT SURVEY Project 13501 06-03 LOST LAKE/AUDITORS GREENWAY Project 13566 06-03 METRO PLAINS DEVELOPMENT Project 13646 06-03 STORM WATER IMPROVEMENT Project 13677 06-03 WATERMAIN REPLACEMENT Project 13681 06-03 RNV FRANCHISE ORDINACE Project 13709 G 101-22899 Pastuck Natural Homes #02- 06-03 PASTUCK 02-12 SUB-DIVISION Project 13770 G 101-22908 Mound Harbor Renaissance 06-03 LANDFORM DEVELOPMENT Project 13832 06-03 TAX FORFEtT PROPERTY $573.50 Project 14000 06-03 2003 STREET RECONSTRUCTION E 101-42400-300 Professional Srvs E 401-43105-300 Professional Srvs E 101-42400-300 Professional Srvs $819.40 $103.00 $103.00 $772.10 $51.50 $1,574.40 $4,206.00 $51.50 $257.50 $1,271.50 $19,507.50 $277.00 $405.00 $51.50 Project 14121 06-03 NPDES PHASE II PERMITTING Project 14137 G 101-22931 2241 Southview Ln,03-10 W 06-03 2241 SOUTHVIEW 03-10 Project 14275 G 101-22917 Three Points Var Becke #03- 06-03 THREE POINTS 03-13 BECKER PROPERTY Invoice 44219 Project 14277 Cash Payment G 101-22942 2851 Tuxedo Blvd ¢K)3-24 C 06-03 2544 COMMERCE 03-18 $103.00 Invoice 44220 Project 14307 Cash Payment G 101-22934 1872 Shorewood,#03-22,LaJ 06-03 1872 SHOREWOOD LANE 03-22 $103.00 Invoice 44221 Project 14411 Cash Payment G 101-22945 5234 Lynwood, #03-29 CUP 06-03 5224 LYNWOOD #03-30 $154.50 invoice 44222 Project 14412 Cash Payment G 101-22946 4925 Drummond #03-31 VA 06-03 4925 DRUMMOND #03-31 $51.50 Invoice 44223 Project 14413 Transaction Date 7/16/2003 Wells Fargo 10100 Cash Payment E 602-49450-388 Waste DisposaI-MCIS 08-03 WASTEWATER $32,738.33 Invoice 0000758971 Cash Payment E 602-49450-388 Waste DisposaI-MCIS 06-03 SAC CHARGES $10,098.00 Invoice 072203 Transaction Date 7/10/2003 Wells Fargo 10100 Total $42,836.33 Refer 72203 MINNESOTA PLAYGROUND, INCO Cash Payment E 101-45200-221 Equipment Parts PLAY EQUIPMENT $1,561.68 Invoice 2003158 PO 17774 -2818- (;ITY Oi= MOUND Payments 07/17/03 3:50 PM Page t6 Current Period: July 2003 Transaction Date 7/15/2003 Wells Fargo 10100 Total $1,561 Refer 72203 MORAN USA, LLC Cash Payment E 609-49750-255 Misc Merchandise For R MISCELLANEOUS $112.11 Invoice 215392 Transaction Date 7/17/2003 Wells Fargo 10100 Total $112.11 Refer 72203 MOUND MARKETPLACE LLC Cash Payment E 609-49750-412 Building Rentals 08-03 COMMON AREA MAINTENANCE $743.75 Invoice 072203 Transaction Date 7/17/2003 Wells Fargo 10100 Total $743.75 Refer 72203 MOUND, CITY OF Cash Payment E 609-49750-382 Water Utilities 06-03 WATER/SEWER $23.10 Invoice 072203 Transaction Date 7/17/2003 Wells Fargo 10100 Total $23.10 Refer 72203 MUELLER, WILLIAM AND SONS Cash Payment E 101-43100-224 Street Maint Materials CREDiT--BLACKTOP -$540.00 Invoice 11638-B Cash Payment E 101-43100-224 Street Maint Materials 06-13-03 BLACKTOP $122.63 Invoice 79384 · ,~m~Cash Payment E 60t-49400-224 Street.Maint Materials 06-13~03 BLACKTOP $3,153.75 n~ voice 79384 Cash Payment E 101-43100-224 Street Maint Materials 06-17-03 BLACKTOP $213.99 invoice 79658 Cash Payment E 601-49400-224 Street Maint Materials 06-17-03 BLACKTOP $744.33 Invoice 79658 Cash Payment E 601-49400-224 Street Maint Materials 06-30-03 BLACKTOP $403.78 Invoice 80341 Cash Payment E 601-49400-224 Street Maint Materials 06-27-03 BLACKTOP $567.16 invoice 80240 Cash Payment E 601-49400-224 Street Maint Materials 06-24-03 BLACKTOP $788.82 invoice 80036 Transaction Date 7/8/2003 Wells Fargo 10100 Total $5,454.46 Refer 72203 NATIONAL WATERWORKS Cash Payment E 602-49450-500 Capital Outlay (GENERA HYDRANTS,VALVES, AND BOXES .$7,660.84 Invoice 9482892 PO 17780 Transaction Date 7/15/2003 Wells Fargo 10100 Total $7,660.64 Refer 72203 NEW FRANCE WINE COMPANY Cash Payment E 609-49750-253 Wine For Resale WINE $178.00 Invoice 21358 Cash Payment E 609-49750-253 Wine For Resale WINE $681.00 Invoice 19929 Cash Payment E 609-49750-253 Wine For Resale WINE $421.00 Invoice 20308 Transaction Date 7/17/2003 Wells Fargo 10100 Total $1,280.00 {efer 72203 NICCUM, DANIEL ;ash Payment E 101-42110-434 Conference & Training 07-26-03 TRAINING $201.00 Invoice 072203 -2819- CITY OF MOUND Payments 07/17/03 3:50 PM Page 17 Current Period: July 2003 Transaction Date 7/8/2003 Wells Fargo 10100 Total $201.00 Refer 72203 NORTHERN WA TER WORKS CaSh Payment E 601-49400-220 RepaidMaint Supply METERS, FlaNGES, ETC $2~5g0.13 Invoice 3176216 PO 17763 Transaction Date 7/15/2003 Wells Fargo 10100 Total $2,5@0.13 Refer 72203 OHMAN, AXEL Ft., iNCORpORATE Cash Payment E 496-46580-300 Professional Srvs 06-30-03 PUBLIC SAFETY BUILDING $28,500.00 Invoice 072203 Transaction Date 7/15/2003 Wells Fargo 10100 Total $28 500.00 Refer 72203 pAusTI$ AND SONS WIivE COMPA Cash Payment E 609-49750-253 Wine For Resale WINE $779.00 Invoice 8010098 Cash Payment E 609-49750-253 Wine For Resale WINE $434.99 Invoice 8009642 Cash Payment E 609-49750-253 Wine For Resale WINE $1,009.66 Invoice 8009088 Transaction Date 7/17/2003 Wells Fargo 10100 Total $2,223.65 Refer 72203 PEPSI-COLA COMPANY Cash Payment E609.49750~255 MiscMerchandiseFor R MIX $301.70 Invoice 46076759 Transaction Date 7/17/2003 Wells Fargo 10100 Total $301.70 Refer 72203 PHILLIPS WINE AND SPIRITS, INc Cash Payment E 609-49750-253 Wine For Resale WINE $3,233.35 Invoice 967247 Cash Payment E 609-49750-251 Liquor For Resale LIQUOR $399.18 Invoice 967246 Cash Payment E 609-49750-254 Soft Drinks/Mix For Resa MIX $204.75 Invoice 965513 Cash Payment E 609-49750-253 Wine For Resale WINE $499.00 Invoice 965512 Cash Payment E 609-49750-251 Liquor For Resale LIQUOR $1,006.10 Invoice 965511 Transaction Date 7/17/2003 Wells Fargo 10100 Total $5,342.38 Refer 72203 PINNACLE DISTRIBUTING Cash Payment E 609-49750-255 Misc Merchandise For R MISCELLANEOUS $10.60 Invoice 21060 Cash Payment E 609-49750-255 Misc Merchandise For R CIGARETTES $387.64 Invoice 21029 Cash Payment E 609-49750-255 Misc Merchandise For R CIGARETTES $507.21 Invoice 20459 Transaction Date 7/17/2003 Wells Fargo 10100 Total $905.45 Refer 72203 QUALITY WINE AND SPIRITS Cash Payment E 609-49750-251 Liquor For Resale LIQUOR $2,866.62 Invoice 281842-00 Cash Payment E'609-49750-253 Wine For Resale WINE $680.86 Invoice 282119-00 -2820- CITY OF MOUND Payments 07/17/03 3:50 PM Page 18 Current Period: July 2003 C~h P~ym~nt I~ 60g-497E;0-2E;3 Win~ Far R~I~ WIN[ Invoice 279967-00 Cash Payment E 609-49750-254 Soft Drinks/Mix For Resa CREDIT-MIX -$23.94 Invoice 279179-00 Cash Payment E 609-49750-253 Wine For Resale CREDIT-WINE -$87.95 Invoice 277670-00 Cash Payment E 609-49750-254 Soft Drinks/Mix For Resa MIX $27.00 Invoice 279589-00 Cash Payment E 609-49750-251 Liquor For Resale LIQUOR $764.59 Invoice 279575-00 Transaction Date 7/17/2003 Wells Fargo 10100 Total $5,138.33 Refer 72203 R & S COLLISION SERVICES, INCO Cash Payment E 222-42260-409 Other Equipment Repair REPAIRS RESCUE TRUCK $4,985.07 Invoice 7804 Transaction Date 7/15/2003 Wells Fargo 10100 Total $4,985.07 Refer 72203 REED BUSINESS INFORMATION Cash Payment E 401-46540-300 Professional Srvs 07-04-03 LOST LAKE GREENWAY $322.14 Invoice 072203 Transaction Date 7/16/2003 Wells Fargo 10100 Total $322.14 72203 REYNOLDS WELDING SUPPLY CO yment E 222-42260-219 Safety supplies AIR AND OXYGEN $21.73 Invoice R 06031042 Transaction Date 7/7/2003 Wells Fargo 10100 Total $21.73 Refer 72203 RIDGEDALEELECTRIC Cash Payment E 496-46580-300 Professional Srvs 06-30-03 PUBLIC SAFETY BUILDING $9,856.00 Invoice 072203 Transaction Date 7/15/2003 Wells Fargo 10100 Total $9,856.00 Refer 72203 RIDGEVIEW BUSINESS HEALTH Cash Payment E 222-42260-430 Miscellaneous 05-03 HEALTH TESTS $2,596.00 Invoice 053003 Transaction Date 7/15/2003 Wells Fargo 10100 Total $2,596.00 Refer 72203 SHOREWOOD TREE SERVICE Cash Payment E 101-45200-533 Tree Removal 5975 BEECHWOOD TREE REMOVAL $1,171.50 Invoice 4594 Cash Payment E 101-45200-533 Tree Removal 2660 LAKEWOOD AVE REMOVE TREE $197.03 Invoice 4599 Cash Payment E 101-45200-533 Tree Removal 4887 EDGEWATER MAPLE TREE $852.00 Invoice 4606 Cash Payment E 101-45200-533 Tree Removal 5035 EDGDEWATER REMOVE TREE $852.00 Invoice 4607 Transaction Date 7/15/2003 Wells Fargo 10100 Total $3,072.53 Refer 72203 SIGNCAD SYSTEMS, INC. :ash Payment E 101-43100-500 Capital Outlay (GENERA SIGNCAD SOFTWARE $4,787.18 lvoice 100855 PO 17784 Transaction Date 7/15/2003 Wells Fargo 10100 Total $4,787.18 Refer 72203 SOS PRINTING -2821 - CITY OF MOUND Payments 07/17/03 3:50 PM Page 19 Current Period: July 2003 Cash Payment E 609-49750-340 Advertising 06-30-03 FLYERS FOR LAKER $272.53 Invoice 64743 Cash Payment E 101-43100-200 Office Supplies CONFINED SPACE PERMITS $64.04 Invoice 64721 Cash Payment E 601-49400-200 Office Supplies CONFINED SPACE PERMITS $64.04 Invoice 64721 Cash Payment E 602-49450-200 Office Supplies CONFINED SPACE PERMITS $64.05 Invoice 64721 Transaction Date 7/3/2003 Wells Fargo 10100 Total $464.66 Refer 72203 SOUTHWEST TRAILS ASSOClA TIO Cash Payment G 101-22801 Deposits/Escrow SW TRAIL ASOC 11/02TO 04/03 $3,152.43 Invoice 072203 Transaction Date 7/10/2003 Wells Fargo 10100 Total $3,152.43 Refer 72203 STONE, MARK AND VAL Cash Payment G 101-22924 6380 Bayridge Rd Stone 03- REIMBURSE ESCROW FUNDS $131.10 Invoice 072203 Transaction Date 7/15/2003 Wells Fargo 10100 Total $131.10 Refer 72203 STREICHER'S Cash Pay~ent E 101-4~110-200 Office Supplies - .MOUTHPIECE NTOX LYZER $28.70 Invoice 375389.1 PO 17817 Transaction Date 7/7/2003 Wells Fargo 10100 Total $28.70 Refer 72203 THORPE DISTRIBUTING COMPAN Cash Payment E 609-49750-252 Beer For Resale BEER $8,040.55 Invoice 302877 Cash Payment E 609-49750-252 Beer For Resale BEER $135.20 Invoice 302876 Cash Payment E 609-49750-252 Beer For Resale BEER $12,115.70 Invoice 302049 Cash Payment E 609-49750-252 Beer For Resale BEER $68.90 Invoice 302048 Cash Payment E 609-49750-252 Beer For Resale BEER $162.50 Invoice 261543 Cash Payment E 609-49750-252 Beer For Resale BEER $177.00 Invoice 261051 Transaction Date 7/17/2003 Wells Fargo 10100 Total $20,699.85 Refer 72203 THURK BROTHERS CHEVROLET E 101-43100-404 Repairs/Maint Machinery HANDLE $4.21 Cash Payment Invoice 50348 Cash Payment Invoice 50348 Cash Payment Invoice 50348 Transaction Date E 601-49400-404 Repairs/Maint Machinery HANDLE $4.21 E 602-49450-404 Repairs/Maint Machinery HANDLE $4,22 7/14/2003 Wells Fargo 10100 Total $12.64 Refer 72203 THURNBECK STELEL FABRICATIO Cash Payment E 496-46580-300 Professional Srvs 06-30-03 PUBLIC SAFETY BUILDING $28,195,00 Invoice 072203 Transaction Date 7/15/2003 Wells Fargo 10100 Total $28,195.00 -2822- CITY OF MOUND Payments 07/17/03 3:50 PM Page 20 Refer 72203 TOLL GAS AND WELDING SUPPLY Cash Payment E 101-43100-230 Shop Materials INDUSTRIAL CYLS $5.85 Invoice 422834 Cash Payment E 601-49400-230 Shop Materials INDUSTRIAL CYLS $5.85 Invoice 422834 Cash Payment E 602-49450-230 Shop Materials INDUSTRIAL CYLS $5.85 Invoice 422834 Transaction Date 7/14/2003 Wells Fargo 10100 Total $17.55 Refer 72203 TWIN CITY OFFICE SUPPLY Cash Payment E 101-41310-200 Office Supplies $14.95 Invoice 392657-0 Cash Payment E 101-41500-200 Office Supplies $14.95 Invoice 392657-0 Cash Payment E 101.42110-200 Office Supplies $14.95 Invoice 392657-0 Cash Payment E 101-42400-200 Office Supplies $14.95 Invoice 392657-0 Cash Payment E 101-45200-200 Office Supplies $14.95 Invoice 392657-0 Cash Payment E 101-43100-200 Office Supplies ~oi~ce 39~7.0 : $4.98 "~mCash Payment E 609-49750-200 Office Supplies $4.98 Invoice 392657-0 Cash Payment E 601-49400-200 Office Supplies $7.48 Invoice 392657-0 Cash Payment E 602-49450-200 Office Supplies $7.48 Invoice 392657-0 Cash Payment E 222-42260-200 Office Supplies $128.80 Invoice 392365-0 Cash Payment E 101.41310-200 Office Supplies $33.96 Invoice 392429-0 Cash Payment E 101-41500-200 Office Supplies $33.96 Invoice 392429-0 Cash Payment E 101.42110-200 Off~ce SuPplies $33.96 Invoice 392429-0 Cash Payment E 101-42400-200 Office Supplies $33.96 Invoice 392429-0 Cash Payment E 101-45200-200 Office Supplies $33.96 Invoice 392429-0 Cash Payment E 101-43100-200 Office Supplies $11.32 invoice 392429-0 Cash Payment E 609-49750-200 Office Supplies $11.32 Invoice 392429-0 Cash Payment E 601-49400-200 Office Supplies $16.98 Invoice 392429-0 ash Payment E 602-49450-200 Office Supplies $16.96 ~voice 392429-0 Transaction Date 7/17/2003 Wells Fargo 10100 Total $454.85 Refer 72203 V & S JEWELERS MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES HOLDER, PAPER,ETC MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES MISCELLANEOUS OFFICE SUPPLIES -2823- CITY OF MOUND Payments 07/17/03 3:50 PM Page 21 Current Period: July 2003 Cash Payment E 101-41110-430 Miscellaneous PICTURE FRAMES $133.98 Invoice 766993 Transaction Date 7/14/2003 Wells Fargo 10100 Total $133.98 Refer 72203 VALLEY PA VING, INCORPORATED E 401-43105-500 Capital Outlay (GENERA THRU 07-11-03 STREET ASSESSMENT $41,707.78 Cash Payment Invoice 071103 Cash Payment G 601-16325 Distribution System THRU 07-11-03 WATER DISTRIBUTION SYSTEM $39,255.15 Invoice 071103 Cash Payment G 602-16325 Distribution System THRU 07-11-03 SEWER DISTRIBUTION $3,944.88 SYSTEM Invoice 071103 Cash Payment G 675-16325 Distribution System THRU 07-11-03 STORM DISTRIBUTION $19,625.33 SYSTEM Invoice 071103 Transaction Date 7/17/2003 Wells Fargo 10100 Total $104,533.14 Refer 72203 WAGERS BUSINESS SYSTEMS, IN Cash Payment E 101-42110-200 Office Supplies TONER AND DRUM KIT $513.60 Invoice ARIN013580 PO 17807 Transaction Date 7/17/2003 Refer 72203 WALDRON, PAUL A. AND ASSOCIA Cash Payment E 101-42400-300 Professional Srvs INSPECTIONS THRU 06-30- $1,200.00 invoice 063003 Transaction Date 7/7/2003 Wells Fargo 10100 Total $1,200.00 Refer 72203 WATERTOWN PARTS CENTER E 101-43100-404 Repairs/Maint Machinery AIR FILTERS $29.95 Cash Payment Invoice 348267 Cash Payment Invoice 348267 Cash Payment Invoice 348267 Transaction Date E 601-49400-404 Repairs/Maint Machinery AIR FILTERS $29.95 E 602-49450-404 Repairs/Maint Machinery AIR FILTERS $29.96 7/8/2003 Wells Fargo 10100 Total $89.86 Refer 72203 WESTERN STEEL ERECTION, INC Cash Payment E 496-46580-300 Professional Srvs 06-30-03 PUBLIC SAFETY BUILDING $23,750.00 Invoice 072203 Transaction Date 7/15/2003 Wells Fargo 10100 Total $23,750.00 Refer 72203 WINE COMPANY Cash Payment E 609-49750-253 Wine For Resale WINE $218.70 Invoice 8060-00 Transaction Date 7/17/2003 Wells Fargo 10100 Total $218.70 Refer 72203 WINE DOCTOR Cash Payment E 609-49750-253 Wine For Resale WINE $206.00 invoice 2003-122 Cash Payment E 609-49750-253 Wine For Resale WINE $374.00 Invoice 2003-143 Transaction Date 7/17/2003 Wells Fargo 10100 Total $580.00 Refer 72203 WINE MERCHANTS -2824- CITY OF MOUND Payments 07/17/03 3:50 PM Page 22 Current Period: July 2003 Cash Payment E 609-49750-253 Wine For Resale WINE $1,051.85 Invoice 77318 Cash Payment E 609-49750-253 Wine For Resale CREDIT-WINE ~$322.50 invoice 18294 Transaction Date 7/17/2003 Wells Fargo 10100 Total $729,35 Refer 72203 WlNKLER, BOB Cash Payment E 101-45200-232 Landscape Material 06-19-03 SAND FOR BAY PARK $501,88 Invoice 062603 Transaction Date 7/10/2003 Wells Fargo 10100 Total $501.88 Refer 72203 XCEL ENERGY Cash Payment E 101-43100-381 Electric Utilities $5,100.78 Invoice 072203 Cash Payment E 101-41910-381 Electric Utilities $1,485.02 Invoice 072203 Cash Payment E 101-42115-381 Electdc Utilities $21.99 Invoice 072203 Cash Payment E 601-49400-381 Electric Utilities $3,187,83 invoice 072203 Cash Payment E 101-45200-381 Electric Utilities $192.94 nvoice 072203 ~ash Payment E 101-43100-381 Electric Utilities $106.67 Invoice 072203 Cash Payment E 601-49400-381 Electric Utilities $106.67 Invoice 072203 Cash Payment E 602-49450-381 Electdc Utilities $106.67 Invoice 072203 Cash Payment E 602-49450-381 Electric Utilities $1,858.28 Invoice 072203 Cash Payment E 101-43100-381 Electric Utilities $372.84 Invoice 072203 Transaction Date 7/8/2003 Wells Fargo 10100 Total $12,539.69 06-03 STREET LIGHTS 0542-505-000-001 06-03 #2245-301-939 06-03 #0466-607-223 06-03 ~217-606-329 06-03 #0047-005-229 06-03 #0864-508-832 06-03 #0864-508-832 06-03 #0864-508-832 06-03 #0018-802-634 06-03 #0009-604-835 -2825- CITY OF MOUND Payments 07/17/03 3:50 PM Page 23 Current Period: July 2003 Fund Summary 101 GENERAL FUND 222 AREA FIRE SERVICES 281 COMMONS DOCKS FUND 401 GENERAL CAPITAL PROJECTS 455 TIF 1-2 496 HRA PUBLIC SAFETY BLDG 601 WATER FUND 602 SEWER FUND 609 MUNICIPAL LIQUOR FUND 670 RECYCLING FUND 675 STORM WATER UTILITY FUND 10100 Wells Fargo $66,951.87 $18,332.30 $1,292.92 $66,213.03 $22,462.24 $568,661.30 $60,375.63 $61,046.16 $94,744.98 $8,805,25 $21,199.73 $990,085.41 Pm-Written Check Checks to be Generated by the Compute Total $0.00 $990,085.41 $990,085.41 -2826- 5341 Mayxvood Road Mound, MN 55364 (952) 472-3190 EXECUTIVE SUMMARY TO: Mound Council, Planning Commission and Staff ~ FROM: Sarah Smith, Community Development Director DATE: July 9, 2003 SUBJECT: Variance(s) Request OWNER: Christine Eberl CASE NUMBER: 03-31 LOCATION: 4925 Drummond Road ZONING: R-1A Residential COMPREHENSIVE PLAN: Low Density Residential BACKGROUND At its July 14, 2003 meeting, the Planning Commission reviewed a request from Christine Ebert for variance(s) approval to allow construction of a detached garage at 4925 Drummond Road The requested variances are described as follows: Required / Allowed Requested Variance Front (south) 20 feet 6 feet 14 feet Hardcover 2560 SF 3273 SF 713 SF PROJECT DETAILS Details regarding the original project are contained in Planning Report No. 03-31 which is on file in the Planning and Building Inspections Department and will be provided to members of the City Council upon request. PLANNING COMMISSION RECOMMENDATION Based on its review, the Planning Commission voted 7 to 2 to recommend approval of the variance application as requested subject to conditions. A copy of the July 7, 2003 Planning Commission meeting minutes excerpts has been included as an attachment. Additionally, a draft resolution based on the Planning Commission's recommendation has also been provided. -2827- CITY OF MOUND RESOLUTION # 03- A RESOLUTION TO APPROVE A FRONT YARD SETBACK AND HARDCOVER VARIANCE TO ALLOW CONSTRUCTION OF A DETACHED GARAGE AT 4925 DRUMMOND ROAD P & Z CASE # 03-12 PID # 25-117-24-11-0105 WHEREAS, the appli~gpt, ~hristin~Ebe~ has requested the following variances to allow construction of a detached garage at 4925 Drummond Road: Required / Allowed Requested Variance Front (south) 20 FT 6 FT 14 FT Hardcover 2560 SF 3273 SF 713 SF and; WHEREAS, the subject property is located in a R-I A Zoning District and subject to the requirements in City Code Section 350:425 which requires a 20-foot front setback, 6-foot side setback(s), a 15-foot rear setback and hardcover not exceeding 40 percent for lots of record; WHEREAS, the proposal includes construction of a 24.5' x 40.2' garage to be accessed by a driveway entrance on Drummond Road; and WHEREAS, the subject property currently lacks a garage; and WHEREAS, the subject property is fronted by Drummond Road on the north side and Windsor Road on the south side and therefore subject to double front setback requirements on both streets; and -2828- WHEREAS, Windsor Road is unimproved in this area and functions as a rear. yard for the property; and WHEREAS, the proposed hardcover overage is attributed to the construction of the new driveway and turnaround area to accommodate the proposed detached garage; and WHEREAS, construction of a garage on the north, west and east sides not possible without a variance; and WHEREAS, the placement of the existing deck located on the south side of the house hinders construction of a garage in this area; and WHEREAS, the opportunity to store vehicles and other items inside is viewed as positive; and WHEREAS, the request was reviewed by the Planning Commission at its July 7, 2003 meeting as required by the City Code who voted 7 to 2 to recommend approval subject to the conditions as recommended by Staff; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City'of Mound, Minnesota as follows: 1. The City does hereby grant the requested variances subject to'the following conditions: Applicant shall be responsible for payment of all costs associated with the land use requests. No future approval of any development plans and/or building permits is included as part of this action in the event the variance(s) application is approved. Applicant shall be required to submit all required information upon submittal of the building permit application. Applicant shall be responsible for procurement of any and/or all permits. 2. This variance is approved for the following legally described property as stated in the Hennepin County Property Information System: Lots 4 & 11, Block 20, Devon, Hennepin County, Minnesota -2829- This variance shall be recorded with the County Recorder or the Registrar of Titles in Hennepin County pursuant to MS.S. 462.36, Subd. 1. This shall be considered a restriction on how this property may be used. The property owner shall have the responsibility of filing this resolution with Hennepin County and paying for all costs for such recording. A building permit for the subject construction shall not be issued until proof of recording has been filed with the City Clerk. 5. The variance is valid for one (1) year following its approval unless an extension is approved by the City Council pursuant to the City Code 350:530, Subd. 2 (E). The foregoing resolution was moved by Councilmember and seconded by Councilmember The following Councilmembers voted in the affirmative: The following Councilmembers voted in the negative:. Adopted July 22, 2003 Pat Meisel, Mayor Attest: Bonnie Ritter, City Clerk -2830- MINUTES MOUND ADVISORY PLANNING COMMISSION July 7, 2003 Case #03-31 Variance Request 4925 Drummond Road Community Development Director Smith introduced the case. The property is a through lot impacted by two street frontages. The proposal requests a setback variance from Windsor Road for a detached garage and a variance for overage of allowable hardcover. The location of the garage considers the needed maneuvering area in the driveway in front of the garage. Public Works Director Skinner indicated some concerns for snow storage along Windsor at the proposed garage location. Discussion Mueller asked about the feasibility of improving Windsor Road in the future. Staff cominents were not clear if it would occur. Mueller asked how the garage section of the City code addressed Setbacks if the doors didn't face the street. Smith stated that because the garage is accessed from another street the Code somewhat silent on this. However, it seems reasonable to apply front yard setbacks in this situation. Ayaz wondered how the garage width might impact the hardcover. The applicant stated they reviewed pavement and paver options to reduce the impact to the hardcover and oak tree along the driveway. MOTION by Mueller, seconded by Clappsaddle, to approve the variance request as recommended by Staff. MOTION carries 7-2. Clappsaddle and Michael dissenting. -2831 - This Page Is Left ntent~onally Blank 2832- CERTIFICATE OF SURVEY FOR dHR'ISTINE A. EBERT OF-LOTS 4 & 11, BLOCK 20, DEVON HENNEPIN COUNTY, MINNESOTA (967.8) (9700) 8" V,CT SANITARY SE ER ,*"CONCRETE APRON -0.00 ................. .." SEWER SERVICE O 24.5 4- EXISTING HOUSF #4925 24-.5 DECK LEGAL DESCRIPTION OF PREMISES · (964.0) 96(961.5) 28" BLACK OAK ~.2) i 960.4) 1; PROPOSED DRIVEWAY (956,7 PROPOS[D APRON ..................... 22.0 14.0 oPEOPOSffD o GARAGE~ 957.0) 89045, 30" W WINDSOR Lots 4 and 11, Block 20, DEVON I'2 o · denotes iron marker (908.3)' denotes existing spot mean sea level datum Bearings shown are based upon an assumed datum. elevation, ..' .: ... PLACE This survey intends to show the boundaries of the above described property, the location of, an existing house, the proposed - location of a proposed garage and driveway, and the location of all visible "hardcover" thereon. It does not purport to show any other improvements or encroachments. ECD 0,3-227 i-{ECEIVED JUN 1 Z[II)3 MOUND FLANitlI~Iu & INS~ I hereby certify thet this survey w~s prepared by me or under my direct super- SCALE vision, and that lam a duly registered Civ~ Engineer (nd Lend Surveyor under 1 "=20' the laws of the State of Minnesota. DATE 5--29--02 Mark S. Gronber0 Minnesota Licer~ ,Number 12755 "',' 03-227 GRONBERG & ASSOCIATES, INC. 952-473-4141 5341 Ma}wood Road Mound, MN 55364 (952) 472-3190 EXECUTIVE SUMMARY TO: Mound Council, Planning Commission and Staff FROM: Sarah Smith, Community Development Director DATE: July 9, 2003 SUBJECT: Variance Request OWNER: Dan Gleason CASE NUMBER: 03-28 LOCATION: 4711 Manchester Road ZONING: R-2 Residential COMPREHENSIVE PLAN: Low Density Residential BACKGROUND At its July 14, 2003 meeting, the Planning Commission reviewed a variance request from iDan Gleason to allow a 12' x 12' deck to be constructed on the south side of the existing home located at 4711 Manchester Road. The requested variance is described as follows: Required Requested Variance Rear (south) (10) (6) feet (4) feet Specific details regarding the project are outlined in the submitted plans (ie. floor, elevation drawings, etc.) that have been included as attachments as well as the applicant's supplemental narrative. PROJECT DETAILS Details regarding the original project are contained in Planning Report No. 03-28 which is on file in the Planning and Building Inspections Department and will be provided to members of the City Council upon request. -2834- CITY OF MOUND RESOLUTION # 03- A RESOLUTION TO APPROVE A REAR YARD SETBACK VARIANCE TO ALLOW CONSTRUCTION OF A DECK AT 4711 MANCHESTER ROAD P & Z CASE # 03-28 PID# 19-117-23-32-0221 WHEREAS, the applicant, Dan Gleason has requested the following variance to allow construction of a 12 x 12 deck to be located on the south side ofh~s emstmg home located at 4711 Man~che~ter Road ' Required Requested Va rian ce Rear Yard (south) 10 feet 6 feet 4 feet and; WHEREAS, the subject property is located in a R-2 Zoning District and subject to the requirements in City Code Chapter 350:630; and WHEREAS, the existing house was constructed in 2000 by a previous owner and the house plans, as submitted, included the placement ora sliding glass door located in the southwest corner of the living room on the upper floor but did not include a deck; and WHEREAS, the existing house is located approximately (17) feet from the west property line as measured from the foundation; and WHEREAS, the construction of a deck on the north and east sides is not logical due to the design and layout of the existing house and construction on the west side would require a variance due to the required setback of (10) feet; and WHEREAS, the eXisting hardcover on the site slightly exceeds the 40 percent allowance but will not increase as a result of the deck project; and -2836- WHEREAS, a City Code Section 350:440 states that decks, balconies, and the like, attached to the principal building which extend in elevation above the height of the ground floor elevation of the principal building are not considered to be yard encroachments provided they do not extend within (10) feet of the rear lot line or extend beyond side yard and front yard accessory building setbacks; and WHEREAS, the request was reviewed by the Planning Commission at its July 7, 2003 who unanimously voted to recommended approval of the variance request based on the following findings of fact: 1. The wasted space that would occur between the deck and retaining wall. 2. Not negatively affecting the neighbor to the rear. 3. The building permit was approved with a sliding door in the location the deck is proposed. 4. Recognition of the hardcover as existing as referenced on the hardcover calculation sheet submitted with the building permit from 2000. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Mound, Minnesota as follows: conditions: Applicant shall be responsible for payment of all costs associated with the land use requests. No future approval of any development plans and/or building p6rmits is included as part of this action in the event the variance(s) application is approved. Applicant shall be required to submit all required information upon submittal of the building permit application. Applicant shall be responsible for procurement of any and/or all permits. This variance is approved for the following legally described .property as stated in the Hennepin County Property Information System and included on the attached Exhibit A. This variance shall be recorded with the County Recorder or the Registrar of Titles in Hennepin County pursuant to M.S.S. 462.36, Subd. 1. This shall be considered a restriction on how this property may be used. -2837- The property owner shall have the responsibility of filing this resolution with Hennepin County and paying for all costs for such recording. A building permit for the subject construction shall not be issued until proof of recording has been filed with the City Clerk. 5. The variance is valid for one (1) year following its approval unless an extension is approved by the City Council pursuant to the City Code 350:530, Subd. 2 (E). The foregoing resolution was moved by Councilmember and seconded by Councilmember The following Councilmembers voted in the affirmative: The following Councilmembers voted in the negative: Adopted July 22, 2003 Pat Meisel, Mayor Attest: Bonnie Ritter, City Clerk -2838- MINUTES MOUND ADVISORY PLANNING COMMISSION July 7, 2003 Case #03-28 Variance Request 4711 Manchester Road - Dan Gieason Community Development Director Smith presented the case to the Commission. This case was presented at the previous Planning Commission meeting to determine if the information presented was sufficient to move the case forward. Ms. Smith indicated the City Engineer indicated the structure encroachment into the easement area would not be detrimental to drainage or utilities. The Building Official commented that the deck size as proposed was of typical size for single family residential homes. Ms. Smith noted there are some erosion control issues. Staff supports the variance application as submitted. Staff finds the home was constructed in conformance with setbacks and because a sliding door was located on the rear of the home and a future deck was anticipated. Discussion Mueller asked if the hardcover calculation sheet submitted with the application is incorrect and stated it appears the parcel is over allowable hardcover. Ms. Smith stated the application was incorrect and the property was over the allowable hardcover. Osmek stated the hardcover problem exists and the deck is not increasing the current situation. Smith further commented that the hardcover allowance as indicated on the calculation sheet included with the variance is the same as the document submitted with the building permit for the new house which was submitted in 2000. Glister asked Staffabout the hardship. Ms. Smith commented on the design and placement of the existing house on the lot which limits where the deck can be placed. Additionally, the existing sliding glass door is located in the proposed deck area. Discussion ensued about the existing retaining wall located in the rear of the property. Osmek noted that the zoning regulations are in place to provide adequate space between homes and there is not a home to the rear of the property that would be impacted by the deck. MOTION by Raines, seconded by Clappsaddle, to approve the request based on the following findings of fact: 1. The wasted space that would occur between the deck and retaining wall. -2839- 2. Not negatively affecting the neighbor to the rear. 3. The building permit was approved with a sliding door in the location the deck is proposed. 4. Recognition of the hardcover as existing as referenced on the hardcover calculation sheet submitted with the building permit from 2000. MOTION carried unanimously. -2840- This Page. Is Left ntent~onally Blank -2841 - ! I ! I I I I ! - I ! I ! ~" ! · · 10 i / / /. / ///////// 80.00 24.4 42.16 I I I -~- 29.7 I I / I I Io I I I q I I 20.00 \ · lO 20j O0 g ~ PO / WEST LINE OF .,... EAST 5.00 FT. - ,~. 42.16 _ ~...- ' 80 oo '~ - '[ ', I [' ;' "- j , L- .' '~.., L~ I I oo I I / ,I 10 20.00 I0 \ .:~,;':: :.',.~:;'. t- o z rq -o I rq i t I 5341 Maywood Road Motmd, MN 55364 (952) 472-3190 MEMORANDUM To'- From: Date: Re: Honorable Mayor and City Council Sarah Smith 7/10/2003 Our Lady of the Lake Catholic Church Incredible Festival Signage Request SUMMARY Our Lady of the Lake Cafl~olic Church has submitted a written request and portable sign application to allow placement of a five (5) portable signs / sandwich boards at various locations in the City. According to the City. Code, the placement of the portable signs is allowed upon approval of the City Council. Additionally, they are requesting placement of"special event" signage on private property, the placement of a banner on CSAH 110 and use ora cringe/boom truck with a temporary sign which can be raised and lowered anywhere from 30 to 1 t0 feet to be located on the church property. It is City staffs tmderstm~ding that the proposed promotion cm~paign has been in place for several years including the use.of th¢_crane/b~mtmck Wifl~ regard to the request from Our Lady of the Lake Catholic Church, City staff offers the following conlnlents: Pennant / Banner on CSAH 110 . City Code Section 365:15 Subd. 9 (C) allows temporary banners and permants employed for special events as long as they are removed within (30) days. Applicant is advised that permission from Hennepin County may be required. 2. Special Event Yard Signs. City Code Section 365.15 Subd, 9 (F) allows the placement of special event signs on subject to the provisions in the City Code which regulates garage sale signs. Crane / Boom with Attached Sien. City Code Section 365 does not specifically address this type of signage however previously it has been classified as a "portable" sign and therefore is allowed upon approval of the City Council. RECOMMENDATION City staff recommends that the City Council approve the sign request(s) from Our Lady of the Lake Catholic Church for the 2003 h~credible Festival subject to the following conditions: I. The temporary sig~ permit application fee is paid. 2. The crane/boom truck is properly stored and secured when not h~ use and lowered in the event of inclement weather. 3. All signage is removed immediately following the event. -2845- eel. ephon e 47~. - Z ~..g4 oar [ab / oF Cl e Lake 9385 comrneuce bou[euaet~ rnounO, minnesota July 01, 2003 To: The City of Mound 5341 Maywood Rd. Mound, MN 55364 We are in the process of planning for our upcoming Incredible Festival, held Saturday and Sunday, September 13th & 14th. The Committee would like to have a sign held up by a crane, as we have in the past years. This crane is *owned and operated by Mr. Bernie Hanson of Rocket Crane Service. The crane is mounted on a truck, and the boom can be raised anywhere from 30 to 110 feet. The truck will be positioned in an enclosed area, by our pastor's garage, with the only access being from Commerce Blvd. The truck will be locked and secured. If ~le~ent :~ath~rt; ~ue:h~a~-high-wi-nds o~r storms ap-pear;:theboom will belowered, It ~illbe:put upon Friday September 12th, and then taken down on Sunday, September 14th. If there are any questions about the crane, Mr. Bernie Hanson of 3555 Tuxedo Rd. in Mound would be glad to answer them. We also have five A-frame signboards that are four feet high and four feet wide. These freestanding signs will be positioned: -by the depot -by Super America -by Crow River Bank -by the vacant lot across from PDQ -by Our Lady of the Lake Church We also have an over-the-street banner across Hwy. #110 and Highland Blvd. We also ask parishioners to display 'yard signs' on their property for several weeks before the event, and they are promptly removed after the festival is over. I have attached the sign permit that the City faxed to me. I appreciate your help. If there are any questions, please feel free to contact. Sincerely, Administrator at Our Lady of the Lake Church -2846- 07/02/03 15:03 FAX 9524720679 CITY 01,' SiGN PERMIT APPLICATION QUASI PUI~J'C FUNCTION - PORTABLE -qlGp City of Mound, 5341 Maywood Road, Mound, MN Phone: 472-0600 FAX: 472-0620 Portable signs used for the purpose of directing the public USed in governmental unit or quasi-public functions. The period of use sha~ (10) consecutive days and requires approval of the City Council. on the premises of the advertised event, and/or on such other prem,s by the City Council when granting ti~e permit. A permit is exempt from all fees. ADDi~SS OF SIGN LOCATION more ~an one, ple~e ~ on ~pem~ ~t J-- T~P~ O~ SIGN: ~banner wall moun= DESCRIBE SIGN (message, ma=erials, Is i= illuminated, etc. ): APPROVED BY CITY COUNCIL ON: -2847- CITY O F M O U N D 5341 MAYWOOD ROAD MOUND, MN 55364-1687 PH: (952) 472-0600 FAX: (9,52) WEB: www. cityofmound.com TO: FROM: DATE: RE: MEMORANDUM Mayor Pat Meisel and City Council Jim Fackler, Parks Director July 11, 2003 Public Lands Permit for The Village by the Bay The attached P~ub!ic Lands. Per.m_it_is._being forwarded for your.recommendation. The Pemit was~ u~a'ni~busly recommended bY ~h~ P~ and Open s~a~eS Advisory Commission at its July 10, 2003 meeting, with the stipulation that it be established that the association will have to maintain the lights, and that if the lights are accidentally damaged by City Maintenance, that the City is not responsible for repair or replacement. printed on recycled paper -2848- CITY OF MOUND RESOLUTION NO. 02-.~ RESOLUTION TO APPROVE A PUBLIC LANDS PERMIT FOR The Village by the Bay, LLC, 5710-5740 Village Trail and 2100 Old School Rd WHEREAS, the applicant is seeking a Public Lands Permit to all the placement of additional street lamps to the Village by the Bay Development. WHEREAS, City Code Section 320, requires City Council approval by a majority vote for construction of any kind on any public way, park or commons, or the alteration of the natural contour of any public way, park or commons; and WHEREAS, the Parks and Open Spaces Advisory Commission considered the request at its July 10, 2003 meeting and unanimously recommended approval of the applicant's request, with the stipulation that it be established that the association will have to maintain the lights, and that if the lights are accidentally damaged by City Maintenance, that the City is not responsible for repair or replacement. WHEREAS, the City Council considered this request at their meeting of July 22, 2003, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mound, Minne'~ote,-to aPprove-the~Pablic Lands:Permit as submi~ed by Village by,he Bayi LLCi The foregoing resolution was moved by Councilmember and seconded by Councilmember The following voted in the affirmative: The following voted in the negative: Adopted by the City Council this Attest: Bonnie Ritter, City Clerk Mayor Pat Meisel -2849- Present: PARK AND OPEN SPACE ADVISORY COMMISSION MINUTES July 10, 2003 Chair Susan Taylor, Vice Chair Derrick Hentz, Commissioners Ron Motyka and Norm Domholt, Council Representative Bob Brown, Parks Director Jim Fackler, Secretary Denice Widmer Absent and Excused: Citizens Present: John Beise, Gene Hostetler Tiaa Nutter, Kn_._ssie Ricke, Colleen Fuhrman, Scott Bischke Don Landon Approval of the May 8, 2003 Minutes (June to .lack of a quorum.) MOTION BY Motyka to approve the Hentz. Motion carried. Agenda Changes: None Comments and suggestions from Discuss: Public Lands Permit cancelled due BY by th~ Bay, LLC Facider gave a very be an after-the-fact MOTION BY Hentz to established the ' of this stating that this would by Fackler that it be ~ to the lights, and that if City Maintenance, that the City is not by Motyka. Motion carried of Tax Forfeited Property 24-117-24- Scott and Kristine Bischke gave a taken stating that the property ~' and designated a park, but that this area would a park. Fackler also stated that it was staff's property to adjacent property owners only. The stated that he had requested the release and that his ective was to get that property cleaned up. Bischke also stated that he has been mowing that property since the late 1970's. Bischke also shared the concern that this property be released to adjacent property owners only, whether it be himself or one of his neighbors. MOTION BY Brown to approve the release of Tax Forfeited Property 24-117-24-41-0136. SECOND BY Domholt. Discussion followed with Moytka raising concern that all adjacent property owners be notified. Motyka also expressed his concern that the lot lines be defined so no new house could go -2850- PUBLIC LANDS REPORT TO: FROM: DATE: SUBJECT: APPLICANT: LOCATION: POSAC Denice Widmer 6/16/03 Public Lands Permit Application The Village by the Bay, LLC 5710-5740 Village Trail and 2100 Old School Rd REQUEST: To allow the placement of additional street lamps to the Village by the Bay Development. CITY CODE 320 - PRIVATE STRUCTURES AND PRIVATE CONSTRUCTION City Code 320.01 regulates private structures and private construction activities on public land in the City of Mound. Specifically, Subd. 1 regulates new constmction activities on public lands. CITY DEPARTMENT REVIEW Copies of the request and all supporting materials were forwarded to all applicable City departments for review and comment. All written comments received to date have been summarized below: Sarah Smith: John Cameron: Greg Skinner: Jim Fackler: No Comment No Comment- No Comment Needs to be reviewed by POSAC in July. It needs to be established that the association will have to maintain the lights, and that if the lights are accidentally damaged by City · Maintenance, that the City is not respgnsibie for repair or replacement. ' ~ PUBLIC AGENCY REVIEW Copies of the proposal were forwarded to all involved public agencies. All w~itten comments received to date have been included in the packet as separate attachments. -2851 - SITE INSPECTION~ City Officials and Board Members ale encouraged to visit the site prior to the meeting. RECOMMENDATION City staff recommends this Public Lands Permit Application be approved with the agreement that the association is responsible for the repair, maintenance and replacement of the lights, regardless of whether the lights are damaged by the City Maintenance Crew. CITY COUNCIL REVIEW In the event a recommendation from the Parks and Open Spaces Advisory Commission is made at its Thursday, July 10, 2003 meeting, the Public Lands Permit Application will be forwarded to the City Council for review at its Tuesday, August 11, 2003 meeting. ATTACHMENTS: · Public Lands Permit Application dated June 3, 2003 -2852- Public Lands Permit Ihformation age 4 of 4 ........ : ............................... --PUBUCL ANDS ................ CITY OF MOUND 5341 Maywood Road, Mound, MN 5304 AP P LI CATI O N Phone 952-472-0600 FAX 952-472-0620 Application Fee: $200 (if project valuation is $1,000 or more) Date Received ~'~,~,~' Dock Commission Date City Council Date DISTRIBUTION Building Official Parks Director DNR MCWD Check One Public Works Other CONSTRUCTION ON PUBLIC LAND PERMIT- new construction. NOTE: NO PERMIT SHALL BE ISSUED FOR CONSTRUCTION OF BOAT HOUSES OR OTHER BUILDINGS ON PUBLIC LAND (City Code Section 320, Subd. 1). PUBLIC LAND MAINTENANCE PERMIT - to allow repairs to an existing structure (City Code Section 320, Subd. 3). CONTINUATION:OF STRUCTURE ~ tb allbw an existing encroachment to remain in an "as is" condition (City Code Section 320, Subd. 3). Revised 05/22/03 - 2853- I-'] LAND ALTERATION - change in shoreline, drainage, slope, trees, vegetation, fill, etc. (City Code Section 320, Subd. 4). The structure or work you are requesting is an activity on publicly owned lands. Structures like boat houses, patios, sheds, etc. are all NONCONFORMING USES. It is the intent of the City to bring all these uses into conformance, which means that those structures will at some time in the future have to be removed from the public lands. All permits are granted for a limited time and are non-transferable. Stairway construction must meet the State Building Code when the permit is for new construction, or a new permit is applied for due to a change in dock site holder. Please type or print legibly APPLICANT Name The Village bv the Bay T,T,C - Attn: Michelle Kaiser Address 1600 University Ave. Suite 212 Phone (H) (W) 651-523-1238 (M) ABUTTING Address 5710-5740 Village Trail and 2100~ Old School Road PROPERTY Lot one Block(P) one & fi~ LEGAL j SC. Ho, md V'~.~fnn.~ - 2nd Addition Subdivision PID # Plat # ZONING-DISTRICT R-1 R-lA R-2 R-3 B-1 B-2 B-3 Public Lands Permit Application ,Page 1 of 2 PROPERTY Dock Site # Shoreline Type CONTRACTOR Name Summit ElectTic Address 215 N. William Street Stillwater~ MN Phone (H) ON) 651-439-7171 (M)_ PROPOSED COST OF PROJECT (INCLUDING LABOR & MATERIALS) DESCRIBE REQUEST & PURPOSE ~,~,~ ~,~,=. ~-~-~,-.~,~,~ 312,000 Applicant's SignalUre ~ ~ iatl Revised 05/22/03 - 2854- /I Public Land Permit Application May 22, 2003 One street fixture was approved for the main entrance to the Village by the Bay development during the final plat process. At the time of installation, it was surmised that the entrance was under lit and the decision was made to add 3 additional street lamps to the entry. The resulting plan is 2 lamps on each side of the street. The addition of the fixtures also created a more defined entry sequence to the development. AlthOugh the original plan was to install the lighting on the interior side of the east-west sidewalks along Village Trail, these locations were impossible due to the joint utility trench nmning down each side of the road. The lamps were ultimately located on the park side of the sidewalks. The lamps are located approximately 12' off the sidewalk along Bellaire, 2'into the park off each sidewalk and approximately 35' apart. The Village by the Bay LLC requests to allow the placement of the street lamps. There is no alternative location for lighting in this area due to the utility locations. No lighting in this area would result in a safety issue for the development and the neighborhood. -2855- Public Land Permit Th~ Vili~g.~-15~. hh~-~lg~iyLLC May 22, 2003 One street fixture was approved for the main entrance to the Village by the Bay development during the final plat process. At the time of installation, it was surmised that the entrance was under lit and the decision was made to add 3 additional street lamps to the entry. The resulting plan is 2 lamps on each side of the street. The addition of the fixtures also created a more defined entry sequence to the development. Although the original plan was to install the lighting on the interior side of the east-west sidewalks along Village Trail, these locations were impossible due to the joint utility trench running down each side of the road. The lamps were ultimately located on the 15ark side of the sidewalks. The Village by the Bay LLC requeSts to allow the placement of the street lamps. There is no alternative' location for lighting in this area due to the utility locations. No lighting in this area would result in a safety issue for the development and the neighborhood. -2856- l 111 I I ,I I il -, ': -2857- , ::::) 0 I O X 3 ,i -2858- lo-u. no -2859- g,,ilel|OB OOD -2861 - CITY OF MOUND 5341 MAYWOOD ROAD MOUND, MN 55364-1687 PH: (952) 472-0600 FAX: (952) 472-0620 WEB; www.cityofmound.com MEMORANDUM TO: Mayor Pat Meisel and City Council FROM: Jim Fackler, Parks Director DATE:. July 11, 2003 Release of Tax Forfeiture Property 24-117-24-41-0136 The attached requ~t for release of Tax Forfeiture Prope~ is being forwarded for Your re~0mmendatibn. The ~e~u~t was'unaiii~oukl3~'reco~msnd~d'bytlie parks and Open Spaces Advisory Commission at its July 10, 2003 meeting, with the stipulation that all adjacent property owners be notified and that this property be sold intact to either the applicants or any other interested adjacent property owner only per City Code 330. Upon City Council approval, this property must then be reconveyed to Hennepin County. printed on recycled paper -2862- CITY OF MOUND RESOLUTION NO. 02- RESOLUTION TO APPROVE THE RELEASE OF TAX FORFEITED PROPERTY 24-117-24-41-0136 TO ADJACENT PROPERTY OWNERS ONLY APPLICANTS: SCOTT AND KRISTINE BlSCHKE WHEREAS, the applicants are seeking the release for sale of tax forfeited property, WHEREAS, the Parks and Open Spaces Advisory Commission considered the request at its July 10, 2003 meeting and unanimously recommended approval of the applicant's request, with the stipulation that all adjoining property owners be notified and that future subdivision of this property not be allowed and that this property must be sold intact to either the applicants or any other interested adjacent property owner only per City Code 330. WHEREAS, the City Council considered this request at their meeting of July 22, 2003 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mound, Minnesota, to approve the release for sale of tax forfeited property 24-117-24-41-0136. The foregoing resolution was moved by Councilmember and seconded by Councilmember The following voted in the affirmative: The following voted in the negative: Adopted by the City Council this Attest: Bonnie Ritter, City Clerk Mayor Pat Meisel -2863- PARK AND OPEN SPACE ADVISORY COMMISSION MINUTES July 10, 2003 Present: Chair Susan Taylor, Vice Chair Derrick Hentz, Commissioners Ron Motyka and Norm Domholt, Council Representative Bob Brown, Parks Director Jim Fackler, Secretary Denice Widmer Absent and Excused: John Beise, Gene Hostetler Citizens Present: e Tiaa Nutter, Kassie Ricke, Colleen Don Landon Approval of the May 8, 2003 Minutes (June to lack of a quorum.) MOTION BY Motyka to Hentz. Motion carried. · Agenda Changes: None Comments and suggestions from Discuss: Public Lands Scott Bischke cancelled due BY by the Bay, LLC Fackler gave a very be an after-the-fact MOTION BY Hentz to approve established the was stating that this would discussion. by Irackler that it be e the lights, and that if City Maintenance, that the City is not by Motyka. Motion carried of Tax Forfeited Property 24.117-24- Scott and Kristine Bischke of this application, stating that the property and designated a park, but that this area would a park. Fackler also stated that it was staff's property to adjacent property owners only. The Bischke, stated that he had requested the release and that his mM~ objective was to get that property cleaned up. Bischke also stated that he has been mowing that property since the late 1970's. Bischke also shared the concern that this property be released to adjacent property owners only, whether it be himself or one of his neighbors. MOTION BY Brown to approve the release of Tax Forfeited Property 24-117-24-41-0136. SECOND BY Domholt. Discussion followed with Moytka raising concern that all adjacent property owners be notified. Motyka also expressed his concern that the lot lines be defined so no new house couM go -2864- up if that property was bought and then subdivided in the future. Motyka requested that this be stipulated in the motion and that the recommendation be made to Hennepin County. AMENDED MOTION by Motyka to approve the release of Tax Forfeited Property 24-117-24-41-0136 with the stipulation that all adjacent property owners be notified and that this property be sold intact to either the applicant or any other interest adjacent property owner. SECOND BY Brown. Motion carried. Discuss: Rottlund Plans w/Residents (It should be noted that the Rotflund residents meeting to vote on a final play structure Faclder gave a brief update on what's installation of this play structure will not mainly to the fact that the outlots at City yet. Faclder also pointed out main workers is having month or more, and that space opportunity for ordering. a small the IN)SAC stated that the spring, due by the his Brown then asked the "Ir'we Fighter maintenance of the consider the the would Fackler property the bigger issues to brought up the fact that in the in_~tallation of the play the neighborhood had reached a )f the options they had voted on. Ricke door to notify everyone in the There was an 18 to 3 vote in favor of commission to accept this proposaL Ricke stated Noonen, Rotflund executive, regarding that will be installed in that park. Fackler stated he walk through the park. Ricke also asked be done to speed up the process of Rottlund turning the 'to the City. Faclder stated that they could possibly escrow the ground cover so excavation and site preparation could begin this fall, but that the ordering and installing could not take place until next spring. There was some discussion regarding the timetable of this project. Taylor asked Fackler if there he possibly has a current project that could be put on hold so his staff could concentrate on Rottlund, and Faclder stated "No", again stating the constraints due to being short-staffed and having the storage space issue. -2865- Release of Tax Forfeitu~ Proper~ For Sale TO: Parks and Open Spaces Commission FROM: Denice Widmer DATE: 6/25/03 SUBJECT: Request for release for sale of ?.4-11%24-41-0136. This property has been designated a park APPLICANT: ~ott and Krist~e Bischke 4957 Brunswick Road Mound, ~ 55364 CITY DEPARTMENT REVIEW Copies of the reque~ and all supporting materials were forwarded to all applicable City summarized below: Sarah Smith: Should be released to abutting property owners only, John Cameron: No Comment Jim Faclder: Recommended review by POSAC. Greg Skinner: No Comment PUBLIC AGENC~f REVIEW Copies of the proposal were forwarded to all involved public agencies. All written comments received to date have been included in the packet as separate at/achments. Marilyn Bell, Hennepin County Tax Forfeited Property Division: Property is surrounded by houses. Hermepin County has no problem releasing this property. It is up to the City of Mound to decide. If the City of Mound decides to release this property for sale, they must reconvey it to the County. SITE INSPECTION City Officials and Board Members are encouraged to visit the site prior to the meeting. -2866- RECOMMENDATION Staff recommends releasing this property for sale to the adjoining property owners. CITY COUNCIL REVIEW In the event there is a recommendation from the Parks and Open Spaces Advisory to release this property for sale, this request will be forwarded to the City Council for a final decision at their July 22, 2003 meeting. The property must then be reconveyed to the County. -2867- Description: ~ Of= ~ND D~: June 13, 2003 Release of Tax Forfeiture Prope~ Public Agency Routing and Comment Form Request for release for sale of ~117-24-41:~36 tax forfeiture property. This property was taken by ~C~ asa designated Park in 1984. Applicant: Scott and Kristine Bischke Property Address: 4957 Brunswick ~ Public Hearing: No Parks Commission Date: 07/10/03 City Council Date: 07/22/03 C~y staff Sarah Smith, Commun, Deve~,¢ John Cameron, City Engineer Public Agencies -~596-6 ~ Hennepin County, Marilyn Bell, Fax # 61 589 Phone # 612-596-6589 ,Jim Faclder, Parks Director ~,1~' COMMENTS: -2868- Hennepin County ~ Server Page I of 2 Click on map to view information on adjOining properties Scroll down to see property address, value & tax info READ IMPORTANT DISCLAIMER INFORMATION BELOW Approximate Approximate Property ID ...... Property Perimeter P~opertY Area Market Value Total Tax (2003) $ $ .oo Click on Property Information Button below to view main tax information page for the property you have selected The data contained on this page is derived from a compilation of records and maps and may contain discrepancies that can only be disclosed by an accurate survey performed by a licensed land surveyor. The perimeter and area (square footage and acres) are approximates and may contain discrepancies. The information on this page should be used for reference purposes only. Hennepin County does not guarantee the accuracy of material herein contained and is not responsible for any misuse or misrepresentation of this information or its derivatives. Please report any map discrepancies to Bob Moulder (Hennepin County Survey Division) at (612) 348-2618 or via e-mail at Bob.Moulder@co.hennepin.mn.us The quality of the display may be influenced by your screen size and resolution setting and is best viewed at 800x600 screen resolution. This application requires Intemet Explorer 3.02 or Netscape 2.01 or later version for proper operation. http://www 19,co. hennepin.mn.us/scripts/esrimap.dll?name=Hennepin&cmd=Find&VALIJ... 6/16/2003 -2869- Engineering ' Planning ~' Surveying July 15, 2003 Ms. Kandis Hanson, City Manager City of Mound 5341 Maywood Road Mound, Minnesota 55364-1627 SUBJECT: City of Mound 2003 Street Reconstruction Partial Payment MFRA #14121 Dear Kandis: Enclosed is Valley Paving's Payment Request No. 1 for work completed through July 11, 2003 on the subject project. The amount of this payment request is $104,533.13. We have reviewed this request, find it in order, and recommend payment in the above amount to the Contractor. If you have any questions or need additional information, please contact me. Sincerely, MFRA John Cameron, City Engineer JC:rth cc: Gino Businaro, Finance Director Enclosure s:Xmain:kmoul412 l~eorrespondence~part-pay7-15 -287O- 15050 23rd Avenue North · Plymouth, Minnesota · 55447 phone 763/476-6010 · fax 763/476-8532 e-mai/: mfra@mfra.com Z ~0 ~ ~> m~ ~o -nc -2871 - · _. bbbb~bbbbbbbb~b~bbbbbbbbbbbbbbbbbbbbbbbbb · ~. · ~ ..... ~. ~. · ~. ~... ~.. · ~. ~ ........ bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb~bbbb~ °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° 88888888888888888888888888888888888888888 ~ ~ ~ ~ ~ ~ooo O0000~O0~O~o~OmOOOoom~ ~Om~O0 . bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb~bbbb~ o~o~o~o~ooooo~oo~o ~o~oo ............. ~. b~ ..... ~.. ~.. · ~ ..... 88888888~8~88.ooo8oo88888oo88oog88o~88888 -2872- 14 - July 18, 2003 ARCltIVES , Reve hue Depart nt The Minnesota Department of Revenue is currently developing final 2003 aid mounts, b~g~Rn;~0~c~l ~)/s~. The final numbers are expected to be very close to the estimates released at the end ofthe especially in the metro area_ Staff at . v e report that the final calculations completed by the first sched ~ . {d not know ffthe3 ~.~? prior to that date. ~ ' ~lllllllllll~~' Wot calcula' ' ' /~ e ted to be n in mid-July, with the goal of releasing that information i _ o each city's 2004 aid loss, the Depmment is c o~ula- such as household size and population decline. Efforts to prepare final numbers for both LGA and levy limits are being impacted by the recent retirement of two long-time members of the Revenue Department's staff that worked in this area. Survey Results: 2 a.m. Bar Closing Nine cities responded to last week's survey related to 2 a-m. bar closings. Of those, five report that their city either not have a local ordinance on the subject or has a local ordinance that references state law with regards to bar hours. A sixth city stated that they have already changed their local ordinance from 1 a-m. to 2 a.m. Only one city reported that they have authorized the extended hours for Thursday, Friday and Saturday nights only and imposed an additional license fee for those establishments that elect to take advantage of the 2 a.m. closing option. One other respondent said their city is considering limiting 2 a~m. closing to particular nights of the week and three other respondents report that they either are or will consider an additional license fee in conjunction with 2 a.m. closings. Those interested in speaking directly to a city that has elected to go to the 2 a.m. closing time, set different closing times for different days of the week, or impose an additional license fee in conjunction with a 2 a.m. closing time, may contact Kris Wilson at AMM (Kristine~145.org or 651.215.4003) for the names and contact information of survey respondents. This Week's Survey: Franchise Fees http://www.~amm 14 5. org/newsletter, htm Does your city currently impose any franchise fees? If so, please indicate which utilities (gas, electric, or cable) are included and the amount of the franchise fee. Has your city adopted any new or revised franchise fees that will be effective for calendar year 2004? (If so please indicate the type and fee amount.) Is your city currently considering a new or revised franchise fee for implementation in 2004? (If so please indicate the type and amount.) ~:i~.~'~. ,~ ~ i, ' :'7PI4/2003~ -2873- a research memo for city o~ficials 215b. 1 June 2003 $15 Guidelines for Preparing City Budgets 2O04 League of Minnesota Cities -2874- II The League of Minnesota Cities provides this publication as a general informational memo. It is not intended to provide legal advice and should not be used as a substitute for competent legal guidance. Read- ers should consult with an attorney for 'advice concerning specific situations. © 2003 League o~ Minnesota Cities Research Foundation All rights reserved League oJJ Minnesota Cities 145 University Avenue ~Test St. Paul, MN 55103-2044 (651) 281-1200 (800) 925-1122 Fax (651) 281-1299 www.lmnc.org -2875- Preface The League of Minnesota Cities has prepared these guidelines to assist city managers, clerks, finance officers, and elected city officials in preparing 2004 city budgets. This document covers many of the state and federal laws that can affect city budgeting, and highlights changes made by the 2003 Legislature and by Congress. The guide includes information to assist cities with creating budgets and discusses standard city expenditure items and descriptions of city revenues. It includes basic guidelines for budget preparation, the timelines and requirements for the truth-in-taxation process, and information on pension and benefit programs. The League has additional information available on many of the topics covered in this publication. Please contact the League for further information regarding any of the areas discussed in this document. We also welcome any suggestions that would make this guide more useful. The League wishes to acknowledge Jed Burkett, staff attorney, for his work in preparing this document. Guidelines for Preparing City Budgets 2004 -2876- This page intentionally left blank. League of Minnesota Cities -2877- Table of Contents Preface ............................................................................................................................................. 3 Part A. New for 2004 ...................................................................................................................... 7 Part B. Budgeting basics ................................................................................................................. 9 Part C. Expenditures ..................................................................................................................... 15 I. Categories of expenditures ......................................................................................................... 15 II. Budget considerations ................................................................................................................. 17 A. Employment costs ................................................................................................................... 17 B. Pension and retirement costs ................................................................................................... 22 C. Fees, dues, and insurance costs ............................................................................................... 33 D. Tax costs ................................................................................................................................. 35 Part D. Revenues ........................................................................................................................... 41 I. Tax revenue ................................................................................................................................ 41 Ao C. D. II. A. B. C. D. E. III. A. B. C. D. E. IV. A. Property taxes .......................................................................................................................... 41 Local sales tax ......................................................................................................................... 46 Local lodging taxes ................................................................................................................. 46 Gambling tax and fund ............................................................................................................ 47 General state aid .......................................................................................................................... 47 Local government aid .............................................................................................................. 47 Market value homestead credit ............................................................................................... 49 Low-income apartment aid ..................................................................................................... 50 Rental housing tax base replacement aid ................................................................................ 50 Fiscal disparities programs ...................................................................................................... 50 Categorical state aid .................................................................................................................... 52 Fire and police state aid .......................................................................................................... 52 Peace office training reimbursement ....................................................................................... 55 Amortization aid ..................................................................................................................... 55 Street and highway funding .................................................................................................... 55 Highway user tax distribution fund ......................................................................................... 57 Additional revenue sources ......................................................................................................... 58 Licenses and permits ............................................................................................................... 58 Guidelines for Preparing City Budgets 2004 -2878- C. D. E. Charges for services ................................................................................................................ 59 Fines and forfeits ..................................................................................................................... 59 Enterprise funds .................................... : ................................................................................. 59 Franchise fees .......................................................................................................................... 59 Part E. Truth-in-taxation ............................................................................................................... 60 I. Proposed levy and budget ........................................................................................................... 60 II. TNT hearing exemptions ............................................................................................................ 61 A. Cities of 500 population or less ............................................................................................... 61 B. Cities with nominal tax increase ............................................................................................. 61 III. Selecting hearing dates ................................................................................................................ 62 IV. Parcel-specific notices ................................................................................................................. 63 V. Advertising requirements ............................................................................................................ 64 A. Cities of 500 population or less ............................................................................................... 64 B. Cities over 500, but not more than 2,500 ................................................................................ 64 C. Cities over 2,500 population ................................................................................................... 64 VI. TNT hearings .............................................................................................................................. 65 A. Initial hearing .......................................................................................................................... 65 B. Continuation hearing ............................................................................................................... 65 C. Subsequent hearing ................................................................................................................. 66 VII. Certification of final levy ............................................................................................................ 66 VIII. Compliance and enforcement ..................................................................................................... 66 IX. Administrative costs .................................................................................................................... 67 X. TNT Summary Chart .................................................................................................................. 67 Part F. Financial reporting ............................................................................................................ 6g Appendix A ................................................................................................................................... 73 Appendix B ................................................................................................................................... 75 Appendix C ................................................................................................................................... 77 Appendix D ................................................................................................................................... 78 Appendix E ................................................................................................................................... 79 Appendix F .................................................................................................................................... 80 6 League of Minnesota Cities -2879- 2003 Minn. Laws 1st Spec. Sess. ch. 2l, art. 5, §§ 12-13 See LMC City-by-City Estimates of Aid & Credit Cuts 2003, 2004 2003 Minn. lmws 1st Spec. Sess. ch. 21, 'art. 5, § 7, amending Minn. Stat. § 477A.013 2003 Minn. Laws 1st Spec. Sess. eh. 21, art. 5, § 3, mnending Minn. Stat. § 477A.011 2003 Minn. Laws 1st Spec. Sess. ch. 21, art. 5, § 2, amending Minn. Stat. § 477A.011 2003 Minn. Laws 1 st Spec. Sess. ch. 21, art. 5, § 7, amending Minn. Stat. § 477A.013 2003 Minn. Laws 1st Spec. Sess. ch. 21, 'art. 5, § 8, amending Minn. Stat, § 477A.013 Part A. New for 2004 The 2003 Legislature took a number of actions that may affect city budgets. 1. Cuts in LGA and MVHC As part of its efforts to balance the state's budget, the Legislature reduced 2003 Local Government Aid (LGA) by $122 million from the amount that was certified to cities last July, and reduced 2004 LGA by an additional $27 million. In addition to LGA reductions, the Legislature reduced the Market Value Homestead Credit (MVHC) reimbursement to cities by $20 million in 2003 and in 2004. The LGA and MVHC reductions represent an approximate 25 percent cut in these programs for the 2004-05 biennium. The aid reductions for individual cities vary considerably. For estimates of LGA and MVHC reductions for your city, visit the LMC web site (www.lmnc.org) or see the LMC 2003 Law Summaries publication. 2. Aid reform A new LGA program will distribute $437 million per year. The new program eliminates the 1993 grandfather aid base, although it maintains about $26 million in aid base for 42 cities that reflects increases in their total base since 1993. The new program does not provide for an automatic inflationary increase. The new program includes a new formula for cites over 2,500 population and an update of the existing formula for small cities. The new formula for cities over 2,500 population uses a number of statistical variables to measure each city's expenditure need. Small cities of 2,500 population or less remain subject to the old need formula variables. For all cities, expenditure need is compared to ability to pay or revenue- raising capacity. Taconite aid will be phased-in to the ability-to-pay calculation. Cities that have spending needs that exceed their local ability to pay receive a share of the LGA distribution. Although the new formula computes the initial aid for 2004 and beyond, several transition mechanisms buffer the impact of the new formula for individual cities. 2003 Minn. Laws 1st Spec. Sess. ch. 21, art. 7, amending Minn. Stat. § 275.71 3. Levy limits The Legislature re-imposed levy limits on cities with populations over 2,500. Covered cities will be allowed to increase their 2004 levy to replace up to 60 percent of the difference between the original certified 2003 LGA and MVHC reimbursement and the reduced 2004 LGA and MVHC reimbursement. The new levy limits provide no adjustment for inflation or household growth. Also, cities that did not "levy to their limit" for 2003 lose all of that unused levy authority for 2004. Guidelines for Preparing City Budgets 2004 -2880- 2003 Minn. Laws 1st Spec. Sess. ch. 21, art 7, § 7, amending Minn. Stat. § 275 73, subd 2 2003 Minn. Laws 1 st Spec. Sess. ch. 21, art. 4 § 6, amending Minn. Stat. § 275.065, subd 3(e) 2(}03 Minn. La~vs 1 st Spec. Sess. ch. 21, art. 4, § 6, amending Minn. Stat. § 275.065, subd. 3(d)(2) 2003 Minn. Laws ch. 128, art. 15, § 6, amend ng M nn Stat. § 624.20 See LMC memo, Regulation of Legal Fireworks: What Ctu~ Cities Do? 2003 Minn. Laws ch. 6, § 1, amending Minn. Stat § 16B 685 2003 Minn. Laws 1 st Spec. Sess. ch. 9, art. 6, § 1, amending Minn. Stat. § 134.34 2003 Minn. [.aws 1st Spec. Sess. ch. 21, art. 8, § 19 2003 Minn. Laws 1st Spec. Sess. ch. 1, art. 2, § 112, amending Minn. Stat. § 471.999 4. Levy limit referendum override date change The levy limit referendum override election deadline changed from Sept. l to the November general election, allowing cities more time to hold an election to exceed the levy limit. The truth-in-taxation law was also changed to except voter-approved levies from the proposed levy amounts shown on the truth-in-taxation notice. 5. Parcel-specific TNT forms The Legislature modified the parcel-specific truth-in-taxation (TNT) form by eliminating columns that report the tax change due to "spending" factors and changes due to "other" factors. 6. Legal fireworks license fees Local authority over the sale of legal fireworks was limited. The statute caps the allowable retail licensing fee at $100 per vendor selling fireworks in addition to other consumer goods and $350 per vendor selling fireworks exclusively. The provision also restricts cities from restricting the display of certain fireworks and requiring fireworks vendors to purchase supplementary liability insurance. 7. Development fee reporting The Legislature amended the develoPment fee reporting requirement by extending the filing deadline to June 30 and exempting cities that collect $5,000 or less in fees. 8. Library MOE contribution The amount of the library maintenance of effort (MOE) contribution required for regional libraries was temporarily reduced. For 2004 and 2005, cities must provide at least 90 percent, rather than 100 percent, of the amount contributed to the regional library in the second preceding year in order to qualify for regional basic system support grants. 9. Local sales tax study The commissioner of revenue will prepare a study of local sales taxes by February 1, 2004 and make recommendations on the appropriate role of local sales taxes in the state and local revenue system. 10. Pay equity reporting change The Legislature gave cities a break from filing pay equity compliance reports for calendar years 2003 and 2004, and extended the reporting cycle for compliance reports from three to five years beginning in 2005. League of Minnesota Cities -2881 - See Part E. Truth-in-taxation. See Ch. 22 of fl~e League's Handbook for Minnesota Cities for a description of budgeting techniques See Part C. Expenditures. See Part D. Revenues. Part B. Budgeting basics Budgeting is the first and most essential ingredient of any efficient system of administration. This guide outlines basic budgeting concepts and processes that a city of any size may need to consider. However, cities with home rule charters, special laws, local ordinances or unique circumstances may have additional or special requirements and considerations. All cities are required to prepare an annual budget and submit a property tax levy to the county auditor. Some cities are required to provide notice of the proposed budget adoption, and hold a public hearing on the proposed budget and property tax levy. 1. Budgeting basics Budget is a plan A city budget is a comprehensive financial plan for a specific period of time. It outlines city activities and service levels, and contains estimates of probable costs and available revenues during the coming year. (For cities, the fiscal year is the calendar year.) A budget can be prepared using any number of budgeting techniques. Whatever the technique employed, the city will need to estimate future expenditures and revenues and make adjustments to balance the budget. Cities must estimate their expected expenditures for the upcoming year. Cities should consider costs associated with certain established categories of expenditures. Common expenses across all categories of expenditures include equipment, supplies, materials, maintenance, repairs, training, and fuel costs. Cities may need to give special consideration to certain types of common expenses, such as employment, pension, and tax costs. Cities should also review their total revenue picture. As a general rule, if the state does not specifically authorize cities to use a revenue source, the city cannot use that source. Generally, property taxes, state aid, license fees, and service charges comprise the largest sources of revenue for most Minnesota cities. The city should look at the past performance and future expectations of each revenue source, taking into account any recent trends or institutional changes. In order to balance the budget, total estimated revenues must be equal to or exceed total estimated expenditures. If total estimated expenditures are too high, the council will need to consider reducing expected costs (such as by eliminating programs or cutting services), increasing revenues where possible (such as by raising license fees and service charges) or both. If the total estimated revenues are higher than the total estimated costs, a city may be able to reduce the amount of the property tax levy. Guidelines for Preparing City Budgets 2004 -2882- Budgeting is critical for city finance and administration. Proper budgeting can assist the council in a number of respects. Budgeting is a means by which the council can obtain estimates of the expected revenues for the coming year and plan city spending. Because budget preparation involves noe0~ary deei~ion~ about the u~e of money, it faeilitat0~ important doei~ion- making and can be tied to achieving specific goals set by the council. Once the council has allocated available money amongst the various city services, the budget can help control expenditures. At the conclusion of the budget year, the budget document can help the council evaluate the level and quality of city services provided during the year. Capital planning When cities prepare their budgets for the upcoming fiscal year, councils must be aware of the long-range financial problems and demands facing the city. In addition to the annual budget, a city would be well served to prepare a long-term financial plan that includes a capital improvement program, a long-term revenue program, and a capital budget. A capital improvement program and a capital budget are especially critical. Capital budgeting is a list of needed capital improvements (infrastructure, public buildings, equipment or land purchases), their order of priority, and the means of financing. The capital budget summarizes, for a five- or six- year period, the capital or money requirements for capital improvements or purchases. A capital budget allows a city to build up a fund balance for capital projects. Priorities in the capital budget program remain tentative and the council should review them annually. A capital budget often provides many advantages, including: (1) reducing or stabilizing the property tax rate, (2) preventing peaks and valleys in a city's debt retirement program, (3) allowing the city to move gradually to a pay- as-you-go program of capital expenditure financing, and (4) helping to preserve the city credit rating by preventing an over-extension of credit and maintaining a credit reserve for emergencies at all times. Although capital budgeting may appear cumbersome and unwieldy to a small city, this is actually not the case. A capital budget provides protection to the small city, helping it avoid commitments and debts that would limit its ability to later finance more important capital improvements. City fund balances State lawmakers are increasingly interested in accurate statistics on local fund balances. Unfortunately, municipal fund balances are not comparable to the state fund balance. Cities' annual reports are likely to show high year- end balances because of the end-of-the-year influx of revenues from property taxes and state aid. These reserves, however, are needed to cover the operating expenses of a city for the first five to six months of the next calendar year, until cities again receive property tax revenues and state aid in June and July. 10 League of Minnesota Cities -2883- See LMC City fund balances 101 See Appendices A and B for sample forms. Mirmesota Office of the State Auditor Accounth'~g Documents: See Part E. Financial Reporting. There is no single standard for figuring out what is an adequate fund balance. The League urges cities to use the financial strategy of designating fund balances. Although all reserves (whether designated or undesignated) are reported to the state auditor, the practice of designating reserves accumulated for a large future purchase can help document the council's specific intentions for the use of these funds. At a minimum, cities should designate a working capital fund and designate adequate revenue for cash- flow to cover operating expenses for the first half of the next fiscal year. 2. Budget format Two aspects of the budget format need to be considered: (1) the actual forms used to prepare the budget, and (2) the classification or account titles for summarizing the data. Samples of actual forms for estimating expenditures and revenues to be used in preparing budgets are provided in the appendices of this document. The Office of the State Auditor (OSA) provides the Uniform Chart of Accounts to facilitate the preparation of uniform annual financial statements. Every city should consult this chart when preparing the annual budget and maintaining financial records. The OSA recommends the adoption of the uniform account numbering system for all cities, including cities under 2,500 in population, whenever practical. Rather than the numbering system, it is the chart's three-dimensional structure (utilizing fund, account, and object codes) that is important. The outline of accounts may also serve as a useful checklist when preparing city budgets. GASB 34 The Governmental Accounting Standards Board's (GASB) Statement No. 34 has established new financial reporting standards for state and local governments throughout the United States. All cities that issue audited annual financial statements will need to comply with some or all of the GASB 34 standards for financial reporting. GASB 34 is a financial reporting framework that measures the overall net financial condition of the city by taking into account all long-term assets and liabilities. One of the major aspects of GASB 34 is that long-term assets should be reported at initial costs less depreciation. 3. Budgeting process Background The process of annual budget preparation occurs within the framework of the state property tax system. Property taxes are generally the primary revenue source for Minnesota cities. Each fall, cities submit their property tax levy for the following year to the county auditor. Counties are responsible for property tax administration; the Dept. of Revenue provides assistance and oversight. Guidelines for Preparing City Budgets 2004 11 -2884- See Part D. Revenues. See Part E. Truth-in-Taxation. Minnesota cities also participate in revenue sharing and property tax relief programs known as Local Government Aid (LGA) and Market Value Homestead Credit (MVHC). LGA supplements property tax revenue; MVHC reimburses property tax revenue taken by a state homestead credit. In addition, cities over 2,500 population are subject to statutory levy limits that restrict the amount cities may levy for general-purpose expenditures. State aids are generally included in calculating levy limits. Cities must prepare and adopt proposed budgets and proposed property tax levies. Cities over 500 population with more than nominal proposed property tax increases are required to provide notice of the proposed budget adoption and to hold public hearings on the proposed budget and property tax levy. (The "truth-in-taxation" (TNT) process is described later in this document.) Timeframe Cities generally prepare budgets in the summer. On or before Aug. 1, the Dept. of Revenue notifies cities of state aid amounts. On or before Sept. 1, the Dept. of Revenue notifies cities of the applicable levy limit, if any. On or before Sept. 15, cities must adopt their proposed budget and certify their proposed levy to the county auditor. The TNT public comment hearings, if required, must occur between Nov. 29 and Dec. 20. On or before Dec. 29, cities must certify their final property tax levies to the county auditor after official adoption of the final levy and budget. Cities generally receive property tax revenues and state aid at the end of the year and again in June and July. The county treasurer distributes property tax to cities in two settlements, the first in June and the second in December. The state distributes LGA payments to cities in two equal installments on or around July 20 and Dec. 26 each year. Cities receive one-half of their MVHC reimbursement on Oct. 31 and the remaining half on Dec. 26. 4. Budgeting challenges Beginning in 2003, many Minnesota cities are facing difficult financial shortfalls. The 2003 Legislature substantially reduced state aid payments to cities, while at the same time imposing severe levy limits on cities over 2,500 population. Cities may need to consider a variety of strategies for meeting this challenge, including: · Reducing or even eliminating some services. · Increasing reliance on user fees and other non-aid, non-tax revenue. Developing a transitional fiscal strategy, such as increased reliance on debt or use of reserves until the revenue base has stabilized. · Finding more efficient ways to operate the city. 12 League of Minnesota Cities -2885- See LMC Resource Guide for De-fling with Budget Cuts: Strategies for Cities Pursuing alternative service delivery methods, such as cooperative agreements with other governments, service contracts, use of volunteers, privatization, and consolidation. Each strategy has attractions, but also complications and pitfalls for the unwary. The League has prepared a supplement to the 2004 Guidelines for Preparing City Budgets to assist city officials in considering the options carefully, choosing those that make the most sense not only for short-term budget balancing, but also for achieving the long-term well being of the community and the city government. Guidelines for Preparing City Budgets 2004 13 -2886- F/gure 1 City Expenditures - 1997 and 2001 I 1997 Percent of 2001 Percent of Expenditure area Expenditures Total Expenditures Total Current Expenditures Seneral Government 307,772,852 8.49% 389,375,254 8.72°A Public Safety 682,466,512 18.83% 822,083,914 18.40% Streets/Highways 275,817,765 7.61% 333,941,110 7.48% Sanitation 15,083,229 0.42% 18,160,789 0.41% -lealth 22,812,988 0.63°/; 33,352,222 0.75% Libraries 55,902,650 1.54% 65,537,147 1.47% Park/Recreation 214,230,932 5.91% 272,213,724 6.09% HRNEcon Dev 177,725,031 4.90% 211,299,894 4.73% ~,irports 5,718,779 0.16% 7,996,563 0.18% Miscellaneous 75,730,873 2.09% 74,9.10,078 1.68% Interest 209,718,008 5.79% 240,065,549 5.37% 2apital Expenditures total Capital Outlay 1,152,889,521 31.81% 1,466,348,725 32.82% ~rinciple Payments 427,910,514 11.81% 532,033,938 11.91% f'otal 3,623,779,654 100.00% 4,467,318,907 100.00% 3ther Financing Uses Debt Redemption - refunded bonds 32,175,459 68,968,397 Dther financing uses 12,969,657 60,818,642 ]'ransfers to Enterprise funds 51,237,348 73,856,990 Yransfers to Governmental fu nd s 563,976,114 695,242,237 Figure la City Expenditures for 2001 1,600 e 1,400 · ~- 1,200 ~ 1,000 = 800 E 600 -' 400 O ~ 200 0 822 334 14 League of Minnesota Cities -2887- See Appendix A for sample form for estimating expenditures. See Figures I and la. Minn. S 'tat. § 626.8458 Minn. Stat. § 626.8462 Part C. Expenditures Cities must estimate their expected costs for the upcoming fiscal year and budget accordingly. I. Categories of expenditures Some categories of expenditures are common to most cities, although the types of expenses included in each category will vary from city to city. What follows is a basic list of categories of expenditures. Many cities will have some activity in most of these categories. Figures 1 and 1 a show the distribution of expenditures by all Minnesota cities in calendar year 1998 and 1999. Common expenses across all categories of expenditures include salaries and other employment costs, equipment, supplies, materials, maintenance, repairs, training, and fuel costs. General government Expenditures under this category include general costs for the administration and finance of city government, including costs associated with the city council. Cities should also budget for the costs of publishing ordinances and meeting notices, and the costs of holding general and special elections. General government expenditures may include personnel costs, building maintenance, and capital purchases. Most cities budget such general government costs as a separate accounting category. Some, however, spread these costs across other city operations on the theory that the costs are overhead expenses. Public safety The basic costs of public safety include police protection, fire protection, ambulance service, emergency preparedness, and some protective inspections. Cities should be sure to budget for public safety training costs. Training costs include statutorily-required training such as police pursuit training and training requirements for part-time police officer licensure. Streets and highways Almost all cities maintain streets and incur substantial associated expenditures. Programs include snow and ice removal, seal coating, street lighting, and street repairs. Sidewalk repair and replacement should also be considered. Guidelines for Preparing City Budgets 2004 15 -2888- Minn. Stat. § 134.34 2003 Minn. Laws 1st Spec. Sess. ch. 9, art. 6, § 1, amending Minn. Stat. § 134.34 Minn. Stat. § 16B.616 Sanitation The cost of sanitation is another basic expenditure. Cities should consider the costs of sanitary sewers and treatment plants, refuse collection and disposal, recycling, street cleaning, weed eradication, and insect and pest control. Health General health costs include hospital facilities, nuisance abatement, dilapidated building removal, and other health services. Libraries Some cities have local public libraries. The cost of running a library includes acquisition and technology costs. Cities with bookmobiles should consider fuel and maintenance costs. Cities without their own libraries may be members of regional library systems, which generally require cities to provide at least the same contribution amount as the previous year. There is an exception when the tax capacity of the city decreases. The 2003 Legislature temporarily reduced the amount of the library maintenance of effort (MOE) contribution required for regional libraries. For 2004 and 2005 only, cities must provide at least 90 percent of amount contributed to the regional library in the second preceding year in order to qualify for regional basic system support grants, rather than the 100 percent required under current law. Parks and recreation Many cities have municipal parks and public recreation programs. Programs of this type include parks, playgrounds, community buildings, playing fields, athletic courts and ice rinks. State bleacher safety requirements should also be considered. Debt service Cities with outstanding debt obligations must provide funds to cover the principal and interest. Given the current historically low interest rates, cities may want to consider refinancing or restructuring debt payments where feasible. Miscellaneous Cities may provide services in many other areas. Common programs include cemeteries, airports, parking facilities, golf courses, liquor stores, environmental initiatives, and programs for senior citizens. Cities should consider how much money is needed to support these programs. User fees are frequemly used to meet all, or a substantial portion, of the costs of these programs. 16 League of Minnesota Cities -2889- Minn. Stat. § 471.9981 2(103 Minn. Laws 1st Spec. Sess. ch. 1, art. 2, § 112, amending Minn. Stat. § 471.999 II. Budget considerations As noted above, common expenses across all categories of expenditures include salaries and other employment costs, equipment, supplies, materials, maintenance, repairs, training, and fuel costs. Cities may need to give certain types of common expenses special consideration when planning budgets. Salaries, benefits, pension obligations, fees, dues, insurance costs, and tax costs all influence the costs of city government across categories of expenditures. The following explanations of items in these expense areas provide guidelines for their budget implications. A. Employment costs Cities must budget for the wages and benefits of both elected officials and city employees. For most cities, this includes budgeting for health insurance costs. Employers must also budget for retirement-related costs such as Social Security, Medicare, PERA, and relief association contributions. 1. Wages and benefits The budget must consider the salaries and benefits of the mayor, council members, city clerk, treasurer, assessors, auditors, attorneys, and other city officials, along with other city employees. a. Adjustment factors To estimate the cost of these salaries, a good starting point is salaries from prior years. Cities can use the most recent full year for which they have actual salary data and adjust the amounts to anticipate changes in wages. Adjustment factors include: pay equity, market wage rates, and cost of living increases (such as the consumer price index), employment contracts, and merit increases. Pay equity plan In setting employee wages and salaries, cities must have implemented a pay equity plan that addresses any gender bias. An amount may have to be included in the budget to cover any salary increases necessary to implement or maintain compliance with the state's pay equity laws. The 2003 Legislature gave cities a break from filing pay equity compliance reports for calendar years 2003 and 2004, and extended the reporting cycle for pay equity compliance reports from three to five years beginning in 2005. Guidelines for Preparing City Budgets 2004 17 -2890- See the Bureau of Labor Statistics web site: (http://www.bls gov/cpi) The most current figures are available from the CPI Hofline, (612) 725-3580. 29 U.S.C.A. §§ 201 to 219 See U.S. Dept. of Labor web site (http://www.dol.gov/) Mime. Stat. §§ 177.21 to 177.33 See MN Dept. of Labor & Industry web site (http ://www. d ol i. state, mn. us/) Market wage rates Another adjustment factor is the market wage rate of other employees in both the private and public sector. To retain good employees salaries should be competitive. Information on current salaries is available from the League of Minnesota Cities, the Labor Standards Division of the Minnesota Dept. of Labor, and the U.S. Dept. of Labor. Three salary surveys are available from the League; two are for greater Minnesota cities (for cities with populations over 2,500 and cities with populations under 2,500) and one is for metro cities. Consumer price index A closely related factor is cost of living adjustments. One measure is the consumer price index (CPI), which is published by the Bureau of Labor Statistics, U.S. Dept. of Labor. The CPI is a measure of the average change over time in the prices paid by consumers for goods and services. The CPI is often used to provide cost-of-living wage adjustments to American workers. Other methods of adjusting salaries for inflation may also exist, depending upon the particular city, and these may also be used instead of the CPI. Cities commonly use either the national or the local CPI, but the national figure is more current. The CPI for the Minneapolis-St. Paul area is updated only twice a year for the reference months of January and July. The national CPI for April 2003 was 2.1 percent higher than one year before. The Minneapolis-St. Paul area CPI for the period of July to December was 2.3 percent higher than one year before. Generally, employers consider the CPI in salary adjustments for inflation so that employee salary adjustments are in constant dollars. Employment contracts Cities must also consider union or employment contracts. A city must fulfill contractual obligations, and will likely need to make some adjustment to 2004 salaries to allow for cost-of-living increases and to ensure the city remains competitive with the wages offered by other employers. b. Fair Labor Standards Act (FLSA) The Federal Fair Labor Standards Act defines the employer requirements for minimum wage, overtime compensation and compensatory time, exempt and non-exempt status, child labor standards, and recordkeeping in relation to these requirements. The State of Minnesota also has a Fair Labor Standards Act. The purpose of this act is to establish minimum wage and overtime compensation standards, to safeguard existing minimum wage and overtime compensation standards, and to sustain purchasing power and increase employment opportunities. 18 League of Minnesota Cities -2891 - See LMC HR Fact Sheets See LMC HR Manual A.G. Op. 107-a-3 (Jan. 22, 1980) 26 U.S.C.A. § 457(b)(2) In situations where both the federal and the state FLSA address an issue, the employer is required to follow the law that is of greatest benefit to the employee. Minimum wage under both the federal and state FLSA is currently $5.15 per hour with a few limited exceptions. The League Human Resources & Benefits Department publishes a number of fact sheets on various aspects of FLSA. The department is also developing an online Human Resources Reference Manual to provide a comprehensive human resources guide for member cities. The first chapter of the LMC HR Reference Manual addresses hiring issues and is available by visiting the HR section of the LMC web site at: www.lmnc.org/. c. Bonuses The attorney general has determined that bonuses constitute a gift and are, therefore, not lawful city expenditures. Cities, however, can have merit- based pay systems. d. Deferred compensation Generally, an employee may elect to defer specified amounts from his or her salary under a deferred compensation plan. There is a tax savings for the employee because taxes are not payable until the money is withdrawn. Since most employees have a lower income during their retirement years, the earnings will be taxed at a lower rate. Federal statute provides that a portion of an employee's wages may be paid in the form of deferred compensation. Under section 457 of the Internal Revenue Code, an employee may defer, on a annual basis, the lesser of: (1) A maximum of 100 percent of the employee's gross income after subtracting any Section 414(h) picked-up contributions (mandatory employee contributions to 401 qualified retirement plans made with pre-tax dollars); or (2): Year Amount 2002 $11,000 2003 $12,000 2004 $13,000 2005 $14,000 2006 $15,000 After 2006, the contribution limits will be indexed for inflation in $500 increments. Although the employee contributions to a deferred compensation plan reduce the individual's taxable income, the city will still need to budget for the employer's share of Social Security and Medicare to the same extent that these withholdings would be required on the employee's regular earnings. Guidelines for Preparing City Budgets 2004 19 -2892- Minn. Slat. § 356 24, subd 1(5) Minn. Stat. § 353.028 Minn. Stat. § 424A.02, subd. 8(b)' see also 26 U.S.C.A. § 408 Minn. Stat. § 465.72, subd. I Under Minnesota law, public employers may contribute to the state of Minnesota deferred compensation plan in amounts provided in the employer's personnel policy or collective bargaining agreement. This contribution may not exceed $2,000 per year, per employee. The employee mutt match any amount contributed by the employer. Although employeeg may contribute to other deferred compensation plans, public employers may only contribute amounts to the state's plan for their employees. For example, if an employer contributes $2,000 toward deferred compensation for 2004, the employee's contribution must be at least $2,000, but cannot exceed $11,000 since the deferred compensation amount is generally capped at $13,000 for 2004. There is special authority for cities to offer deferred compensation to city managers or a chief administrative officer. Within six months of beginning employment, the manager or chief administrative officer may elect to be excluded from PERA. The city may agree to contribute deferred compensation for this individual. Such contributions must comply with federal tax laws. Deferred compensation is generally not available as an option for volunteer firefighters. Transfers of lump sum service pension amounts to individual retirement accounts (IRAs) are permissible, but only if the relief association's bylaws permit it and the plan qualifies under the Internal Revenue Code standards. e. Severance pay Cities must also consider any expenditures for severance pay to city employees. Severance pay provided for an employee leaving employment may not exceed an amount equivalent to one year of pay. f. Vacation and leave When budgeting, cities must be mindful of costs associated with employee time off, whether the time off is for holidays, vacation, sick leave, school- related leave, family leave, military leave or any of the other leave provisions that may apply to city employees. Additionally, cities should budget for the cost of having temporary replacements for employees absent for significant time periods. 2. Health insurance a. Health insurance costs In budgeting for future health and dental premiums, cities need to be aware of underlying trends in the cost of health and dental care. Health and dental care costs continue to increase faster than the general rate of inflation. Health experts and actuaries project that the inflationary cost of health care will increase 15 percent to 22 percent over the coming year and dental costs will increase 5 percent to 10 percent. 20 League of Minnesota Cities -2893- Minn. Stat. § 471.61, subd. 2a Minn. Stat. § 179A.20, subd 2a Minn. Stat. § 471.61, subd. 2b (a). (b) Minn. Stat. § 356.24, subd. l(a)(SXii) Minn. Stat. § 465.72, subd. I The other trend that will impact each city's health and dental rates is that of the group's own experience. Depending on how your city is pooled with other groups, your claims experience may serve to increase health and dental premiums even more than projected inflationary trends. For planning purposes cities may want to base their budgets on the underlying trend in medical costs: that is, assume health premiums will increase no less than 20 percent by July 1, 2004. Given the particularly volatile nature of health and dental claims, it's probably a good idea for cities to build in significant cushion to their budgets for this line item. Premium increases of more than 30 percent (or even 40) percent are very common in the market today. This is probably a reasonable approach for all cities, regardless of you're the city's carrier. Cities should talk to their individual health and dental coverage providers about what to expect for their next renewal. Of course, if a city caps its contribution to premiums at a specific dollar amount, the full effect of any premium increases will not necessarily hit the city's budget. There has been a general disconnect in the healthcare market between "users" and "payers," in part because many employers are still paying the full amount of employee benefit premiums. Cities may wish to review their benefit contribution levels, and consider some mechanism of cost-sharing between the city and its employees. b. Retiree health insurance Cities may pay the premiums for group insurance coverage of retired employees. However, an employer is not obligated to fund any cost of health care benefits for a former employee beyond the duration of the contract or personnel policy. A policy may not extend beyond the end of the longest contract covering other employees. If there is no contract, a policy may not extend beyond the end of the budgetary cycle during which the policy is adopted. It is important to note that cities must allow for a former employee and the employee's dependents to continue indefinitely in health or dental insurance plans if the employee has met age and service requirements necessary to receive annuity benefits. Furthermore, the employee and dependents must be pooled in the same group as active employees until the employee reaches age 65. Cities are not required to pay any portion of the premiums for these participants, although they may certainly elect to do so. A city may contribute up to $2,000 for an employee into the state of Minnesota deferred compensation plan if authorized by the city's personnel policy or collective bargaining agreement. The employee must contribute a matching amount. This plan allows employees to build a nest egg from which to buy health insurance coverage during retirement. Compensation for accumulated sick leave or payments toward premiums for group insurance policies for former employees need not be counted toward the one-year pay limit on severance pay. Guidelines for Preparing City Budgets 2004 21 -2894- Minn. Stat. § 471.611, subds. 1, 2 Local governments must identify separately in their budgets the amount they spend on health insurance benefit payments for retirees during the contract of policy period. The payments must be recorded as expenditures for the fiscal year during which the payments are made. Benefits must be approved by a separate council action if payments are for employees (or former employees) who are not covered by a collective bargaining agreement. Employers providing employer-paid health care benefits must coordinate these benefits with Medicare. See PiERA Employer Manual (http://www.ranpera.orEd) See PERA Employer Manual (http://g~vw.mnpera.org/) B. Pension and retirement costs Cities should budget for the cost of making required employer payments to the pension and retirement plans of city employees. The various costs can include Social Security and Medicare; Public Employees Retirement Association (PERA); volunteer firefighter relief association; ambulance personnel retirement; and police and paid firefighter relief associations. Additional retirement system costs may also be considered, such as staff time to do paperwork, reporting, and training of responsible staff. 1. Public Employees Retirement Association The Public Employees Retirement Association (PERA), a public pension system, covers almost all regular non-seasonal city employees in Minnesota. Exceptions include most volunteer firefighters and election officers. Employees must belong to the system, and contributions from the city and from employees are mandatory. Cities, as employers, are entrusted with the responsibility of enrolling all employees who qualify for membership and are legally required to remit contributions on a pay period basis. PERA provides a variety of employer services, including a PERA Employer Manual and an Employer Response Line. The PERA Employer Manual contains comprehensive information about PERA and its policies and plans, and is available on the PERA web site at: www.mnpera.org. The Employer Response Line can be reached by calling toll free (888) 892-7373, or (651) 296-3636. PERA administers defined benefit plans and defined contribution plans. Defined benefit plans Defined benefit retirement plans are known as such because members' benefits are computed using a formula and are not based on the amount the member contributed to the plan. PERA has four types of defined benefit plans: Basic, Coordinated, Correctional and Police and Fire. The Basic Plan closed to new members in 1968 when Social Security coverage became available for most city employees. Generally, all new city employees, other than fire and police officers, participate in the Coordinated Plan. For descriptions of the plans, see part three of the PERA Employer Manual. 22 League of Minnesota Cities -2895- See PERA Employer Manual (http://x~v.mnpera. org/) Minn. Stat. § 353.01, subd. 2b See PERA Employer Manual (http://www, mnpera.org/) See PERA Employer Manual (http://w~xv. mnpera.org/) See LMC research memo 220e.3, Organization and Operation of the Relief Association. Defined contribution plans A defined contribution plan (DCP) involves contributing into a retirement account, which the employee will receive in lump sum upon application. Defined contribution plans include plans for elected officials and plans for volunteer ambulance personnel. For a description of defined contribution plans, see part four of the PERA Employer Manual. Eligibility for participation Whether an employee is included in a PERA defined benefit plan depends on whether the employee meets the statutory definition of an included or an excluded employee. Generally, most local government employees are required to participate unless they are specifically excluded. For further information on employee eligibility, see part five of the PERA Employer Manual. Employer Contribution Rates Employers are required to withhold employer and employee contributions, at rates established by statute. Employer contribution under the basic and coordinated plans includes both a match to the employee contribution and an additional employer contribution. For further information on contribution rates and reporting, see part seven of the PERA Employer Manual. The following summarizes employer and employee contribution rates: Plan EmPloyer's Employee's Contribution Contribution Basic Plan 11.78% 9.10% Coordinated Plan 5.53% 5.10% Police & Fire Plan 9.30% 6.20% Correctional Plan 8.75% 5.83% DCP-Elected Officials 5.00% 5.00% DCP-Physicians 5.00% 5.00% DCP-Ambulance Set by employer Set by employer 2. Volunteer firefighters' relief associations If there is a volunteer firefighter relief association, the city clerk will need to be familiar with the laws regarding these types of pensions. The city clerk, along with the mayor and the fire chief, must represent the city on the relief association's board of trustees. These officers have a fiduciary responsibility to the members of the retirement plan. The city may also have a financial responsibility to support the plan, so it is important for the city to be aware of the amount it may need to budget for this obligation. Guidelines for Preparing City Budgets 2004 23 -2896- Minn. Stat. § 424A.02, subd. 3 Minn. Stat. § 69.772, subd. 4 Minn. Stat. § 69.774, subd 2 Minn. Stat. § 69.772, subd. 3 Minn. Stat. § 69.772 Minn. Stat. § 69.772, subd. 2 Officers of all volunteer firefighters' relief associations that are subsidiary to a city fire department must certify the association's financial requirements for the coming year to their city councils. This must be done by Aug. 1 of each year. These financial requirements include the current or normal costs and amortization of any pension fund deficit. These amounts are determined differently depending upon whether the association pays a lump sum service pension or a monthly benefit service pension. Cities should note the minimum and maximum amounts that can be paid to retired volunteers is being increased over the next several years. These increases are discussed in further detail later in this section. Relief associations that are subsidiary to independent, nonprofit fire departments must pay the financial obligations of the special retirement fund and the cost of any actuarial survey from the proceeds of their firefighting contracts. A city would have no direct financial obligation to support the retirement systems of an independent fire departments. The amount of the obligation for the independent fire department, however, will likely affect the price of the city's fire protection contract with the independent department. Additional information on volunteer firefighters' relief associations is available from the League of Minnesota Cities, the Office of the State Auditor, or the Legislative Commission on Pensions and Retirement. a. Lump sum benefit plans Relief associations that provide for the payment of lump sum pensions should include the following in the certification of financial requirements: · The overall funding balance of the special fund for the current calendar year. · The financial requirements of the special fund. · The minimum obligation of the municipality. The statutes specify how this data should calculated. Contact the League or the Dept. of Revenue for further information. Relief association officers should determine the dollar amount of accrued liability for each member. The accrued liability is based on the number of years of active service for each member (carried to the nearest full year). To determine the accrued liability, use the statutory chart provided in Minn. Stat. § 69.772, subd. 2. The accrued liability for each member is calculated by multiplying the accrued liability from the statutory chart by the ratio of the lump sum service pension amount currently provided for in the bylaws of the relief association to a service pension of $100 per year of service. For example, if the association pays $50 per year of active service, the liability would be one-half the amount in the table; if the association pays $200, the dollar amount of liability is double the amount in the table. 24 League of Minnesota Cities -2897- Minn. Stat. § 424A.01 Minn. Stat. § 424A.02 Minn. Stat. § 69.772, subd. 6 Minn. Stat. § 69.772, subd. 6 Minn. Stat. § 349.12, subd. 25(b)(6) Minn. Stat. § 471 6151 Every volunteer firefighter is eligible for membership in a relief association. Persons serving in fire prevention positions are now able to participate if approved by the city or independent fire department. The association may not approve an application from a person who is not eligible to participate under state law. Most relief associations provide for retirement after 20 years of active service with the fire department, 10 years of membership with the relief association, and 55 years of age. However, associations may permit partial vesting in five years. Special laws permit full vesting after five years for some plans. Bylaw changes and benefit increases Bylaw changes can have a significant impact on the relief association's retirement benefits. In most cases, the city council must approve these changes before they can take effect. The council should consider such changes only if they are needed to attract volunteers. The council should have the city clerk or other qualified financial expert review the financial implications before ratifying the changes. Failure to properly calculate the special fund requirements could cause the special fund to run short. This could result in personal liability for the officers of the relief association or require the city to substantially increase its tax levy for the relief association, or both. In some cases, relief associations may increase benefits without council approval. Relief association articles of incorporation or bylaws that affect benefits may be amended without council ratification if both the following requirements have been met: · The assets of the relief association exceed its liabilities by at least 10 percent as shown on the association's last annual report. · The city is not required to contribute more than 2 percent aid due to the changes in benefits that will cause the relief association to exceed the expected amount of future state aid. If the relief association special fund is derived in substantial part from non- tax revenues, the city might be wise to let the association increase the benefit amount without council ratification. If the non-tax revenues decrease in the future, the benefit level would drop back to the last ratified amount. This will ensure the proposed increase will not commit the city to a program it cannot reasonably afford. An example of the above situation is the impact from the 1993 law that prohibits using contributions of lawful gambling money for the benefit of a retirement fund. Many cities that had allowed contributions of this sort to help fund their relief association retirement plans found they had to budget extra money to maintain ratified benefit levels. Guidelines for Preparing City Budgets 2004 25 -2898- Minn. Stat. § 424A.02, subd. 3, as amended by 2003 Laws I st Spec. Sess. ¢h.12, art. 12, § 1 Minn. Stat. § 424A.02, subd. 3a Minn. Stat. § 424A.02, subd 3(d) Minn. Stat. § 424A.02, subd. 10 Minn. Stat. § 424A. 10, subd. 2 Minn. Stat. § 424A.10, subd. 4 For further information call the Dept. of Revenue Property tax Division at (651) 296-5141. Cities should make sure a benefit increase does not exceed statutory limits that exist for volunteer firefighter benefits. The maximum and minimum amounts have increased over the last few years. Payment of benefits in excess of statutory limits can result loss of fire state aid. The dollar amounts for lump sum service pensions effective December 31, 2003 are laid out in a table in Minn. Stat. § 424A.02, subd. 3(d) as follows: Minimum Average Amount of Available Financing per Firefighter $3,831 $3,885 $3,939 $3,993 $4,047 Maximum Lump Sum Service Pension Amount Payable for Each Year of Service $7,100 $7,200 $7,300 $7,400 $7,500 If the relief association bylaws are amended, the relief association must file a copy of the revised bylaws with the state auditor. Failure to do so means a loss of state aid. State supplemental benefits A state supplemental benefit is available to volunteer firefighters who receive lump sum benefits. The supplemental benefit is 10 percent of the recipient's lump sum distribution, but is limited to $1,000. The relief association pays for the benefit. The commissioner of revenue reimburses the relief association by March 15 of each year for the total amount of supplemental benefits paid during the previous calendar year. Cities receive a form (Form SBR) each November that must be filled out by the relief association. The form must be submitted to the Dept. of Revenue by Feb. 15 of each year in order to receive reimbursement. The supplemental benefit is in lieu of the income tax exclusion for lump sum distributions. Minn. S 'tat. § 69.773, subd. 2 Minn. Stat. § 424A.02 subd 3, as amended by 2003 Laws 1st Spec. Sess. ch.12, art. 12, § l b. Monthly benefit plans Relief associations that provide monthly benefit pensions must determine the financial requirements of the special fund based on the most recent actuarial valuation. The relief association should include a copy of the actuarial survey with the certification of financial requirements. An actuarial survey is required every four years, or whenever the benefits schedule in the bylaws change. As with the lump sum plans, the statutory amounts for monthly service pensions have expanded over the last several years. The dollar amounts for monthly benefit service pensions effective Dec. 31, 2003, are laid out in a table in Minn. Stat. § 424A.02, subd. 3(c) as follows: 26 League of Minnesota Cities -2899- Minn. Stat. § 424A.02, subd. 3(c), as amended by 2003 Laws 1st Spec. Sess. ch.12, art. 12, § 1 Minn. S'mt. §§ 144E.40~.48 Contact the Dept. of Health at (651) 215-5803 for further information. Minn. Stat. § 353.86 Contact PERA at (651) 296-7460 or 800-652-9026 for fu~her information. Minn. Stat. § 353D.08 See Deferred Compensation discussion above. Minn. Stat. § 69.77 Minimum Average Amount of Available Financing per Firefighter $4,454 $4,538 $.4,622 $4,706 Maximum Service Pension Amount Payable per Month for Each Year of Service $53.00 $54.00 $55.00 $56.00 Bylaw changes and benefit increases The city must consider carefully any requests for changes in benefits of monthly service pensions. Concerns are similar to those discussed for lump sum service pensions. 3. Ambulance personnel retirement There are several retirement benefit possibilities for ambulance service personnel. They include the following: · Ambulance longevity award. There is a special trust fund that provides lump sum benefits to ambulance service personnel upon the completion of their ambulance service careers. This longevity award in administered by the Dept. of Health. · PERA Defined Benefit Plans. PERA generally prohibits volunteer ambulance personnel from participating in the Basic, Coordinated, and Police and Fire retirement plans. However, ambulance personnel who are eligible to participate in one of these PERA plans because of other employment may elect to participate in that same fund with respect to compensation received for providing volunteer ambulance service. · PERA Defined Contribution Plan. PERA includes a defined contribution retirement plan for personnel of publicly-operated and publicly-subsidized ambulance services. PERA is accepting local plan applications for review. · Deferred compensation. Deferred compensation would apparently be an available option in the same way that it is for other public employees. But this option may not be meaningful if ambulance volunteers are paid nominal amounts for their services. · Special legislation. Cities can seek special legislation for other ambulance service retirement possibilities. 4. Police and paid firefighter relief associations Some cities have local relief associations or retirement funds with members who are employed by paid or partially paid departments. These cities must budget for their financial responsibilities to these pension plans. Guidelines for Preparing City Budgets 2004 27 -2900- Minn. Stat. § 69.77, subd. 5 Minn. Stat. § 69.77, subd. 7 Minn. Stat. § 69.77, subd. 8 Minn. Stat. § 69.77, subd. 10 Minn. Stat. § 356.215, subd. 4 Minn. Stat. § 69 77 See Minn. Stat. Ch. 356A Minn. Stat. § 424A.05, subd. 3(a)(6) Minn. Stat. § 3.85 Minn. Stat. § 69.051 Minn. Stat. § 424A.05, subd. 3(a)(6) Minn. Stat. § 69.80 Minn. Stat. § 424A.06, subd. 3 Officers of these relief associations must certify the financial requireruents and minimum obligation of the association for the following year between Aug. 1 and Sept. 1. The certification must include an amount sufficient to retire the unfunded accrued liabilities of the association by the date specified in the law that applies to the association. The officers of these associations have a fiduciary responsibility to the members of these plans. Ifa city does not include the full amount of the minimum obligation in its levy for any year, the officers of the association must certify that amount to the county auditor who will spread the levy in the amount of the obligation. Money paid by the city in excess of the minimum required will be applied to reduce the association's unfunded liabilities. These relief associations must also obtain an actuarial survey as Dec. 31 of every year. Actuarial valuations must be made in accordance with state statute. The state auditor and the commissioner of revenue determine if a city or relief association has complied with all the relevant provisions of the laws. Failure to comply with the applicable laws will result in loss of state aid. 5. Fiduciary responsibility and other reporting Persons involved with pension funds have a fiduciary responsibility to the members of the pension plan. These persons include pension fund administrators, board members, and investment advisors, among others. Because of this responsibility, there are strict statutory directions as to what these individuals can and cannot do. For instance, the law prohibits personal profits from investments, requires filing statements of economic interest, limits types of investments for small funds, prohibits some type of transactions, applies the open meeting law to board meetings (including the boards of volunteer firefighters' relief associations), requires continuing education for fiduciaries, and also sets other requirements. There are also some restrictions as to who may not serve as a fiduciary. The state auditor holds an annual workshop for Minnesota public pension fund officers. Relief associations can budget money fi.om the special fund to send the clerk or other officer to this workshop. This workshop offers an opportunity to meet most fiduciary education requirements. The Legislative Commission on Pensions & Retirement may request and receive any data on police or fire relief associations. The state auditor has authority to audit relief associations annually, but may contract with a certified public accountant for the audit. Relief association funds may be used to pay for audits. This is an authorized special fund expense. The cash requirements of this fund, however, will increase by the amount that is used for the audit and the city will ultimately have to pay this expense. The cost of an audit may also be paid from the association's general fund if allowed by the bylaws. 28 League of Minnesota Cities -2901 - Minn. Stat. § 69.051, subds. 1, la Minn. Stat. § 69.051, subd. 2 Minn. Stat. § 356.219, subds. 1, 3 Minn. Stat. § 356.219, subd. 3(d) Minn. Stat. § 356.219, subd. 3(b), (c) See IRS Circular E, Employers' Tax Guide (IRS Publication 15) The state auditor must file a financial compliance report with the commissioner of finance and each relief association. The state auditor must also notify the Legislative Commission on Pensions & Retirement if the audit reveals malfeasance, misfeasance or nonfeasance in office, or if the relief association has not filed its annual report by March 15 each year. The boards of all salaried relief associations and all volunteer firefighters' relief associations with assets of liabilities of at least $200,000 must prepare an annual statement of financial affairs that must be certified by an independent public accountant or the city's auditor. These statements must be filed in the relief association' s office and be submitted to the city council and the state auditor. The treasurer of the volunteer firefighters' relief association must be bonded in an amount equal to at least 10 percent of the assets of the association. The amount of the bond does not need to exceed $500,000. The relief association board determines the amount. The city council determines the amount for paid firefighter and police relief associations. Any public pension fund not fully invested through the state board of investment, including a firefighters' relief association, must report certain investment information to the state auditor. The reports must include investment policy changes and the effective date of each policy change. If the public pension plan has a total market value of less than $10 million, the report must include the amount and date of each portfolio injection and withdrawal, as well as the market value of the total portfolio at the beginning of the calendar year and for each quarter. If the public pension plan has a total market value of $10 million or more, the report must include the market value of the total portfolio and the market value of each investment account, investment portfolio or asset class included in the pension fund as of the beginning of the calendar year and for each month, as well as the amount and date of each injection and withdrawal to the total portfolio and to each investment account, investment portfolio or asset class. The report must also include a calculation of the total time- weighted rate of return available from index-matching investments assuming the asset class performance targets and target asset mix indicated in the written statement of investment policy. 6. Social Security and Medicare Currently, the Social Security withholding rate for 2003 is 6.2 percent of an employee's wages on all earnings up to $87,000. The employer must contribute a matching amount. The Medicare withholding rate for 2003 is 1.45 percent on all earnings without limit. Again, the employer must contribute a matching amount. There are three different possibilities of withholdings of Social Security and Medicare. An employee will have one of the following possible withholding situations: · Both Social Security and Medicare are withheld. Guidelines for Preparing City Budgets 2004 29 -2902- 26U.S C A § 312t (b)(7)(F) 42 U.S.C.A. § 410 (a)(7)(F) · Neither Social Security nor Medicare is withheld. · Only the Medicare portion is withheld. (NOTE: In no case would any employee have only the Social Security portlon withheld.) The following chart summarizes required withholdings: Type of Plan Social Security Medicare No qualified plan Yes Yes Coordinated Plan Yes Yes Basic Plan Hired on or before 3/31/86 No Hired on or before 3/31/86 & elected Medicare participation No in 10/89 referendum Hired after 3/31/86 No Yes Yes Yes Police & Fire Plan Hired on or before 3/31/86 No Hired after 3/31/86 No No Yes Election officials Paid less than $1,200 per year No Paid $1,200 or more per year Yes No Yes a. Medicare and Social Security withholdings Determining the category for each employee is no easy task. Generally, a public employee who is not participating in a qualified retirement system through his or her employment is subject to both the Social Security and the Medicare withholdings. The retirement plans offered through PERA have been deemed "qualified" retirement systems. Thus, employees who are not participating in PERA (such as some elected officials and part-time, seasonal or temporary employees) might fit into the category of those having both Social Security and Medicare withheld. It is important to remember that employees who are members of the PERA Coordinated Plan will also have both Social Security and Medicare withheld, even though they are participating in a qualified plan. This is because participation in Social Security and Medicare is included as part of this particular retirement system. 30 League of Minnesota Cities -2903- 26 U.C.SA. § 3121 (b)(7)(F)(iv) 42 LI.S.C.A. § 410 (aXT)(F)(iv) See IRS Circular E, Employers' Tax Guide (IRS Publication 15) b. Exempt from withholdings There are very few exceptions to the above general requirement. The one that is most applicable to cities is the exemption from both Social Security and Medicare withholdings for election officials who are paid less than $1,200 in 2003. This amount is annually adjusted. At the time of publication, the threshold for 2004 had not been established. There are also a few individuals participating in qualified plans whose earnings may be exempt from withholdings, depending upon their date of hire. This possibility is described in more detail in the next paragraph. c. Medicare withholdings Employees who are participating in a qualified plan are exempt from the Social Security withholdings, but some of these employees may still be subject to the Medicare withholding, depending upon the employee's date of hire. If the employee was hired after March 31, 1986, Medicare must be withheld. If the employee was hired on or before March 31, 1986, and is participating in a qualified retirement plan, the employee's earnings are exempt from this withholding, unless the employee chose to have Medicare withholding during an election option that was given in October 1989. Employees who might fit into the category of having only the Medicare portion withheld would include PERA Basic Plan members and PERA Police and Fire members hired after the above date. Also included would be any Basic Plan members hired on or before March 31, 1986, who opted for Medicare participation in the October 1989 referendum. If you are unsure of a Basic Plan member's status with regard to the 1989 referendum option, contact PERA. Although no new members have been eligible to join the PERA Basic Plan since 1968, members who were participating were allowed to continue. In such a situation, the Basic member who has left employment with one city for a job with a different city would be seen as a new hire and Medicare withholdings would be required. Under certain conditions, this type of employee would be allowed to continue his or her participation in the PERA Basic Plan. d. Volunteer firefighters and Social Security Cities have had many questions about the applicability of Social Security and Medicare withholdings to volunteer firefighters. There are essentially two issues surrounding this matter. One must first determine whether a volunteer fire fighter is an employee. If so, one must next determine if the volunteer firefighters' relief association plan would be a qualified retirement plan under the IRS criteria. Guidelines for Preparing City Budgets 2004 31 -2904- 26 CFR § 31.3121(b)(7)- (2)(d)(2) 26 U.S.C.A. § 3401(a) See IRS Circular E, Employers' Tax Guide (IRS Publication 15) First, is a volunteer firefighter an employee? If the volunteer is compensated only as a reimbursement for actual expenses incurred, prior IRS rulings suggest that the volunteer would not be viewed as an employee and withholding would not be required. If the compensation is a result of anything that is not justifiable reimbursement (i.e., supported by receipts for the expense), the compensation may constitute a wage. In other words, the IRS could see the individual as a paid employee, rather than a true volunteer, and withholdings would likely be required. While some IRS rulings indicate that earnings of a nominal amount would not constitute a wage, there is no clear definition of a "nominal amount." Cities may want to err on the side of caution and make withholdings on any earnings close to minimum wage. The second issue is whether a volunteer firefighters' relief association plan would meet the standards necessary for it to be deemed a "qualified" plan under IRS regulations. It does not appear that these plans are sufficient to meet the standards because they fail to meet the 100 percent non-forfeitable benefit requirement necessary for part-time, seasonal, and temporary employees. This requirement means that the plan must allow the retirement withholdings to be returned to the employee if the employee has not yet vested 100 percent. Relief association retirement plans do not allow this type of refund and do not fully vest until a firefighter has participated for many years. Although there is an exception to withholdings for employees hired temporarily to handle disaster emergencies, this would not appear to exempt volunteer firefighters from Social Security and Medicare withholdings. The ongoing and continuous relationship that volunteer firefighters have with their cities in providing fire fighting services probably precludes a "temporary" relationship. Fire departments and relief association plans can differ substantially from city to city in Minnesota. Because of these differences, a city will have to look closely at its particular situation to determine whether or not its volunteer firefighters would be exempt from withholdings. Cities that believe they have special circumstances may want to request a revenue ruling or a private letter ruling from the IRS. (There may be a fee for such rulings.) e. W-2 reporting of Social Security and Medicare Generally, all city employees, including elected officials and firefighters, should receive a W-2 form after the end of each year. The W-2 is a statement of the employee's earnings and withholdings for the year. City employees should not receive IRS Form 1099, which should be given only to individuals who have an independent contractor relationship with the city. According to IRS Circular E, an IRS Form W-2 is not required for election workers who are paid less than $600 in a year. As noted above, federal withholdings are not for election officials who are paid less than $1,200. 32 League of Minnesota Cities -2905- Contact the MPCA at (651) 296- 2274 or 1-800-646-6247 for further information. 2002 Minn. Laws ch. 220, art. 8, ~6 C. Fees, dues, and insurance costs Cities should budget for fees, dues, and insurance costs. 1. State fees Cities should budget for state fees that might affect city expenditures, such as permit fees and audit fees. a. State fee increases The 2003 Legislature enacted a number of significant fee increases that may impact cities. The bulk of the fee increases impact criminal justice and health and human services. Fee increases that might impact cities include: Criminal justice agencies will pay the Dept. of Public Safety a fee for providing secure dial-up access to criminal justice data. A 7 percent increase in 911 telephone bills will finance the debt service on revenue bonds for early phases of the build-out of the statewide public safety radio communications system. · Stormwater permit fees are set at $400 for construction and industrial permits and $0 for MS4 (municipal separate storm sewer) permits. · Groundwater use permit fees are increased significantly to provide resources to avoid additional reductions in the DNR Waters division. The state auditor's proposal to increase audit fees charged to local units of government by 12 percent in 2004 and an additional 4 percent in 2005 will likely occur since the audit practices division has a statutory obligation to charge enough in fees to cover its costs and fee levels have into kept pace with the cost of providing the service. Audit fee increases must be approved by the Dept. of Finance. b. MPCA wastewater treatment fees Cities should consider the cost of Minnesota Pollution Control Agency (MPCA) water quality permit fees. Such fees may apply to city wastewater treatment facilities. Fees for permits regulating surface water discharge are found under Minn. R. 7002.0210 to 7002.0310. The 2002 Legislature increased fees for water quality permits. National Pollutant Discharge Elimination System (NPDES) permit holders saw an approximate 25 percent increase in permit fees. 2. Association dues Cities should include membership dues paid to organizations in their budgets. Guidelines for Preparing City Budgets 2004 33 -2906- Contact the League finance director with questions concerning LMC dues. See LMCIT memo, City Budget Cuts and LMCIT Premiums a. League of Minnesota Cities League dues are computed using the city's latest population estimate and the Board recommended dues schedule (population estimates are provided either by the State Demographer or the Metropolitan Council). The Board will not set the dues schedule for dues payable Sept. 1, 2004 until late summer 2004; therefore, cities must budget for dues based on assumed dues and population changes. Many factors influence the Board's decision when setting dues, including cities' financial situations, inflation, strategic plan initiatives, non-dues revenue sources, etc. Cities whose populations change significantly from year to year should estimate their city's population through 2003. This estimated population can then be used with the below schedule and the assumed dues change to estimate dues payable Sept. 1, 2004. If you need assistance estimating population or dues, call the League finance director at (651) 215-4021 or 1-800-925-1122. The Board decided to have no increase in dues payable Sept. 1, 2003. Our advice to cities at this time is to budget for a dues increase for dues payable Sept. 1, 2004 ranging from 0 to 3 percent (the average dues increase over the previous nine years has been 2.7 percent). Dues payable Sept. 1, 2003 Population 249 or less 250-4,999 5,000-9,999 10,000-19,999 20,000-49,999 50,000-299,999 300,000 and over Amount $270 $94 plus 71.44 cents per capita $746 plus 58.38 cents per capita $1,613 plus 49.71 cents per capita $5,417 plus 30.19 cents per capita $16,332 plus 8.56 cents per capita $27,529 plus 4.84 cents per capita In addition to basic membership services, the League offers some services not covered by dues. If a city plans to use these services, it should include them in its budget. Such services include: conferences, ordinance codification, personnel training, and certain publications. 3. Insurance expenditures Most cities are members of the League of Minnesota Cities Insurance Trust (LMCIT) for property, liability, auto, and worker's compensation coverage. If your city purchases insurance from a private company, you should ask your provider what to expect. The following is LMCIT's best estimate for what might be seen in premium rates for 2004. These are very preliminary projections and are absolutely not guarantees. LMCIT needs to complete actuarial reviews and rate development work, and also get a firm indication of what reinsurance costs will be, before giving any definite answers on premium rates for 2004. Cities may wish to check back with LMCIT in the fall for an updated outlook on premiums. 34 League of Minnesota Cities -2907- 26 C.F.R. § 48.4221-5 26 U.S.C.A. §§ 4071(a); 6416(b)(4)(B)(ii) 26 U.S.C.A. §§ 4251; 4253(i) Liability In general, liability loss costs seem to be holding stable. The 2003 law changing joint and several liability should help reduce liability costs over the next few years. Assuming no surprises in reinsurance costs, LMCIT is cautiously hopeful it will be able to keep liability rates flat for 2004. Property The cost of property reinsurance has been rising sharply over the past couple of years, and that's largely why LMCIT has had to increase property rates in each of the past two years. There are some indications, however, that property reinsurance cost increases may be moderating. If so, and barring any changes in loss patterns, LMCIT is hopeful it can keep property rates to a moderate or even no increase. Auto Auto liability and property damage loss patterns have been stable. As with property, we hope to be able to keep rates to very moderate increase. Workers' compensation The picture here is less encouraging. Medical costs continue to rise sharply, and seem to be running even higher than what LMCIT projected when it set the premium rates for 2003. That will again put pressure on the rates for 2004. In order to keep rate increases to a minimum in the past two years, LMCIT squeezed the margin in the rates down to zero, so there's no room in the current rates to absorb any increase in loss costs. And falling interest rates mean less income from investments, which in turn means any loss cost increases will have to be covered from premiums. LMCIT will know more by late summer when it completes the actuarial review, but right now it looks like cities should be prepared for another work comp rate increase that could be in the 10 percent range. D. Tax costs Cities should budget for costs associated with federal and state taxes. 1. Federal taxes a. Federal excise tax Many products are subject to federal excise taxes, but cities may be eligible for refunds or be able to purchase some of these goods tax-free. For example, cities are exempt from having to pay federal excise tax on the purchase of tires. Local governments are also exempt from the 3 percent federal tax on communications and should be sure their telephone providers are aware of this exemption. Guidelines for Preparing City Budgets 2004 35 -2908- See IRS Publication 5t0, Excise Taxes. Further information on tax-free purchases is available from manufacturers' representatives or from the IRS. A special IRS publication discusses excise taxes. 26 U.S~C.A. § 641(b)(2)(C) 26 U.S.C.A. § 4081(a)(2) See [RS Publication 510, Excise Taxes See IRS Publication 378, Fuel Tax Credits and Refunds See Appendix F, Forms land 2. 26 U.S.C.A. § 6421 26 U.S.C.A. § 64270) 26U.S.CA. § 4082(a) b. Federal fuel taxes Cities are exempt from the federal excise taxes on gasoline and most diesel fuel purchased for the exclusive use of the city. The federal excise tax on gasoline is currently 18.4 cents per gallon. The federal excise tax on diesel fuel and kerosene is currently 24.4 cents per gallon. Different tax rates exist for some specials fuels such as ethanol and aviation fuels. Contact the IRS for further information about these rates. Dyed diesel fuel and dyed kerosene sold for nontaxable uses is not subject to federal excise tax, but is subject to state excise taxes. Exempt gasoline purchases There are two ways a city can use the federal tax exemption for gasoline purchases; the city can: (1) purchase the gasoline without paying the tax by filing a certificate with the vendor, or (2) apply for a refund using ITS Form 8849. First, a city can purchase the gasoline without paying the tax by filing a "Certificate of Ultimate Purchaser" with the vendor. The form certifies that the gasoline is for the exclusive use of the city. If the city buys its fuel directly from a wholesaler, it should file the form with the wholesaler. If the city buys its fuel from a retailer, it should file the form with the retailer. The retailer must then provide a "Certificate of Ultimate Vendor" to their supplier. The second way for a city to use the tax exemption is to pay the tax at the time of purchase and apply for a refund on IRS Form 8849 at a later date. Generally, this approach is used by cities unable to locate a vendor that will sell gasoline without charging tax. Applications for refunds may be made at the end of the year, but may be made quarterly if the gasoline taxes during the quarter are $750 or more. Exempt diesel fuel purchases There are also two ways a city can purchase diesel fuel without paying federal excise tax; the city can: (1) purchase dyed diesel fuel, or (2) purchase undyed diesel fuel tax-free from a registered ultimate vendor. First, cities may purchase dyed diesel fuel without paying federal excise tax. Dyed fuel is dyed red to mark it as fuel sold for nontaxable uses. Cities that buy dyed diesel fuel should be certain that a notice stating "Dyed Diesel Fuel, Nontaxable Use Only, Penalty For Taxable Use" appears on all papers and receipts concerning their purchase of the dyed diesel fuel. 36 League of Minnesota Cities -2909- See [RS Publication 378, Fuel Tax Credits and Refunds See Appendix F, Form 3. Contact the IRS Tax Exempt Governments and Entities (TE/GE) Operating Division office of Federal, State and Local Governments at 877-829-5500. Contact GFOA at (202) 429- 2750. 26 IJS.C.A. § 5123(b)(3) Minn. Stat. § 279A.70 See MN Revenue Sales Tax Fact Sheet 142, Sales to Governments. See MN Revenue Sales Tax Fact Sheet 146, Use Tax for Btksinesses Minn. Stat. § 297A.80 Alternatively, cities may purchase undyed diesel fuel from a registered ultimate vendor at a tax-excluded price. Only a registered ultimate vendor may apply for a credit or refund of the federal excise tax on diesel fuels. As such, most cities will not be able to apply for these refunds and should look for diesel fuel vendors that sell dyed diesel fuel or are registered ultimate vendors authorized to sell undyed fuel without the tax. A registered ultimate vendor will require the city to submit an exemption certificate as documentation that the sale was for a nontaxable use. Further information about the tax-free purchase of gasoline and diesel fuels is available from the League, the IRS, and the Government Finance Officers Association, Federal Liaison Center (which supplied the sample forms found in Appendix F). c. Liquor occupational tax The federal special occupational tax is currently $250 per year. Every dealer of distilled spirits, wine or beer, including municipal liquor stores, must pay this special tax and obtain a tax stamp. A city that owns and operates municipal liquor stores does not need to pay more than one special tax, regardless of the number of city-owned stores. 2. State taxes a. Sales and use tax With few exceptions, cities pay the same 6.5 percent sales tax on most purchases of goods and services that is paid by individuals and businesses. The sales tax exemption for food, clothing, and medicine extends to cities. Use tax Vendors generally collect sales tax at the time of sale. However, if the vendor does not charge sales tax on taxable items, cities must pay use tax. Use tax is similar to sales tax. Use tax applies to items bought without paying Minnesota sales tax to the seller. For example, items purchased through mail order or over the Internet may be subject to use tax or another tax. When purchases are made in other states, cities should check with that state as to whether the purchase is subject to that state's sales tax. If the purchase is subject to the sales tax of another state, the city would be exempt from paying the Minnesota use tax only to the extent that the sales tax rate in the other state is equal to or greater than the rate in Minnesota. A city that pays a lower sales tax rate in another state will need to pay the difference between the other state's sales tax rate and the Minnesota rate as use tax. Guidelines for Preparing City Budgets 2004 37 -2910- Minn. Stat. § 297A.70, subd. 2 Minn. Stat. ,~ 297A.70, subd. 3 See MN Revenue Sales "Fax Fact Sheet 135, Fire Fighting Equipment Minn. Stat. § 297A.68 See MN Revenue Sales Tax }':act Sheet 103, Capital Equipment Exemptions Public schools, public libraries, and public hospitals and nursing homes are exempt from sales and use tax. §ome specific, limited exemptions to sales and use tax apply to certain items. Some of the more common city purchases not subject to sales and use tax include: bulletproof vests; repair and replacement parts for emergency rescue vehicles, including fire trucks and ambulances but not police cars; certain solid waste disposal machinery and equipment; and certain firefighter personal protective equipment. Capital equipment The purchase or lease of capital equipment is exempt from sales tax and eligible for refund claims. "Capital equipment" means machinery and equipment used primarily from manufacturing, mining or refining tangible personal property to be sold ultimately at retail. Few city purchases will fit this exemption, but certain purchases made by city water or electrical utilities may qualify. For refund eligibility, check with the Minnesota Dept. of Revenue. Minn. Stat. § 297B.02; Minn. Stat. § 168.012, subd. 1 (b); Minn. Stat. § 297B.03 (8) See MN Revenue Sales Tax Fact Sheet 125, Motor Vehicles Minn. Stat. § 297A.70, subd. 3(a)(7) Minn. Stat. § 296A.07, subd. 3 Minn. Stat. § 296A.08, sub& 2 Minn. Stat. § 296A.08, subd. 1 (e) b. Motor vehicle sales tax The state motor vehicle sales tax of 6.5 percent applies to all city purchases of vehicles except specific emergency vehicles that are not required to be registered. In general, fire vehicles, ambulances, and police patrols are not taxable since their registration is not required. Bookmobiles or library delivery vehicles are also exempt. Payments on vehicles leased by cities are treated as individual transactions subject to the general Minnesota state sales tax, rather than to the motor vehicle sales tax. Lease payments on motor vehicles leased by cities are exempt from general sales tax if the vehicle is exempt from registration. Vehicles acquired using a lease agreement that includes a buyout option may be considered a sale subject to the motor vehicles sales tax. c. State fuel tax Cities are generally subject to state gasoline and special fuel petroleum taxes. The state gasoline tax is 20 cents per gallon. Ethanol blends of gasoline are taxed at lower rates. Other special fuels such as diesel and kerosene fuels are also subject to state petroleum tax. Although dyed diesel fuel is not subject to federal excise tax, it is generally subject to state tax. (Dyed fuel is dyed red to mark it as fuel sold for uses not subject to federal fuel tax.) Undyed diesel fuel is likewise subject to state tax even though cities may be eligible for a federal refund of the federal tax charged on undyed diesel fuel. 38 League of Minnesota Cities -2911- Minn. Stat. § 296A.16 See MN Revenue Sales Tax. Fact Sheet 116, Petroleum Products See MN Revenue Pelroleum Fact Sheet 300 See MN Revenue Form PDR-I Minn. Stat. §§ 168.012, subd. l(b); 296A.01, subd. 29; and 296A.08 Minn. Stat. § 297A.68, subd. 19(6) Minn. Stat. § 287.21 Minn. Stat §§ 297H.02-.03 See MN Revenue Special Taxes Fact Sheet 1, Solid Waste Management Tax Cities may be eligible for a refund of state petroleum taxes paid for fuel used for off-highway business purposes. The refund does not apply to fuel used in licensed motor vehicles. NOr does it apply to fuel used in motorboats, all-terrain vehicles, and most snowmobiles. To claim a refund of state petroleum tax paid for fuel used for off-highway business purposes, a city must submit detailed supporting information to the Minnesota Dept. of Revenue using Form PDR-1. Minnesota general sales tax must be paid on any refunded gallons. Diesel fuel used by some city fire vehicles, ambulances, and police patrols for which registration is not required is exempt from the state special fuel tax and from the general sales tax. For more information about diesel fuel refunds, contact the Petroleum Tax Division of the Minnesota Dept. of Revenue, at (651) 296-0889. d. State deed tax Cities are subject to the state deed tax for conveyance of land by deed. The tax must be paid before the county will record a property transfer. The tax is $1.65 if the price of the property is $500 or less. If the price is over $500, the tax rate is .0033 of the net consideration. e. Solid waste management tax Waste management service providers are responsible for collecting and remitting the solid waste management tax of 9.75 percent for residential generators and 17 percent for commercial generators. Cities are responsible for the tax if they: (1) provide solid waste management services, (2) directly bill on a property tax statement for private waste management services, or (3) subsidize the cost of waste management services through the sale of bags, stickers or other indicia. Guidelines for Preparing City Budgets 2004 39 -2912- Figure 2 City Revenues - 1997 and 2001 1997 Percent of 2001 Percent of Revenue Source Revenues Total Revenues Total Property Taxes 728,507,704 23.16% 914,532,608 24.28% Tax Increments 269,142,954 8.55% 307,942,870 8.18% Other Taxes 143,520,160 4.56% 184,545,255 4.90% State Grants 813,417,028 25.85% 951,632,166 25.27% Special Assessments 206,465,324 6.56% 232,328,000 6.17o4 Charges for Service 241,243,567 7.67~ 335,155,755 8.90% Interest Earnings 193,998,864 6.17%! 207,611,585 5.51% Federal Grants 169,428,747 5.39% 130,865,957 3.47% Licenses and Permits 90,548,343 2.88% 132,913,275 3.53% County and Local Grants 47,239,675 1.50% 67,469,586 1.79% Fines and Forfeits 29,384,315 0.93% 37,987,309 1.01% Other Revenues 213,309,183 6.78% 263,421,142 6.99% Total 3,146,205,864 100.00% 3,766,405,508 100.00% Other Financing Sources Revenues from Borrowing 696,661,093 706,485,024 Other Financing Sources 25,716,347 42,292,658 Transfers from Enterprise Funds 98,477,851 132,161,943 Transfers from Governmental Funds 564,006,114 695,242,237 Figure 2a City Revenues for 2001 1,200 .__ 1,000 800 600 400 200 0 952 335 131 133 40 League of Minnesota Cities -2913- See Figures 2 and 2a. Minn. Stat. § 273.13 Part D. Revenues Cities in Minnesota receive revenue from a variety of sources. Property taxes, general and categorical state aid, and fees comprise the largest sources of revenue for most Minnesota cities. Minnesota law greatly restricts the available typ~s of local revenue sources. For example, unlike some other states, local governments in Minnesota may not impose an income tax. Also, without specific legislative authority, cities may not impose a local sales tax, and those that have been granted are usually for specially designated purposes. As a general rule, if the state does not specifically authorize cities to use a revenue source (such as special authority for local sales taxes), the city cannot use that source. Figures 2 and 2a show distribution of revenue sources for all Minnesota cities in the calendar year 1998 and 1999. I. Tax revenue Tax revenue includes current property taxes, delinquent property taxes, apportionments from tax forfeit sales, franchise and public utility taxes, and city sales, gambling, and lodging taxes. A. Property taxes The property tax is the primary revenue source for most Minnesota cities. The property tax applies to all taxable property within the jurisdiction's boundaries. 1. Class rate Depending on use, properties have different class rates that determine the properties' relative share of the property tax burden as well as a property's tax capacity. For taxes payable in 2004, the following table summarizes several of the major classes of property: Property classification Class rate First $500,000 of residential homestead and single-unit residential 1.0 percent Amount over $500,000 1.25 percent First $150,000 of commercial/industrial Amount over $150,000 1.5 percent 2.0 percent Two or more units of rental residential 1.25 percent Guidelines for Preparing City Budgets 2004 41 -2914- 2003 Minn. Laws 1st Spec. Sess. ch. 2 I, art. 7 amending Minn. Stat. § 275.71 LGA and MVHC are described below. Minn. Stat. § 275.74, subd. I 2. Tax capacity Tax capacity is the measure of property tax base value. Each taxable parcel has an individual tax capacity. The tax capacity of a property is determined by multiplying its class rate by the property's assessed market value. For example, the tax capacity of a $150,000 owner-occupied home would be: $150,000 x 1 percent = $1,500. Each jurisdiction has a total tax capacity that is the sum of the tax capacities of all the parcels in the jurisdiction. This total property tax base, based on the sum of tax capacities, is used to compute the local property tax. The total tax base figure must be reduced by 10 percent of the powerline value in the community, the captured tax increment value, and the fiscal disparities contribution value, if any, to arrive at the tax base for computing the local tax rate. 3. Setting the property tax levy Each year, cities certify a property tax levy for the following year in dollars, not at a specific rate. To compute the city tax rate, the city's certified levy is divided by the city's total tax capacity. The property tax levy should be set at a level to raise adequate revenue for the operating budget when combined with other expected revenues. The final level of expected revenue should be sufficient to result in a projected year-end fund balance to cover possible emergencies or contingencies. Cities with populations greater than 2,500 and those receiving taconite aid must file an annual report with the commissioner of revenue. The report will require separate information on levies for debts, libraries, and general levies. The annual deadline to submit the report is by Dec. 30. It the report is not filed by Jan. 30, a 5 percent LGA penalty will be imposed. 4. Levy limits Cities with populations greater than 2,500 are once again subject to levy limitations. Such cities are allowed to increase their 2004 levy to replace up to 60 percent of the difference between the original certified 2003 LGA and MVHC reimbursement and the reduced 2004 LGA and MVHC reimbursement. The new levy limits provide no adjustment for inflation or household growth. Cities that did not "levy to their limit" for 2003 lose all of that unused levy authority for 2004. On or before Sept. 1, the Dept. of Revenue notifies cities of the applicable levy limit, if any. a. Special levies The Legislature exempts some levies from the overall levy limit. These exempt levies are called "special levies" and they include: 42 League of Minnesota Cities -2915- Minn. Stat. § 275.74, subd. I Minn. Stat. § 275.74, subd. 2 · Debt levies for principal and interest on all bonded indebtedness or for most certificates of indebtedness. · Voter-approved levies assessed against market value. · Armory construction levies. · Levies for matching requirements for state and federal grants, to the extent that the matching requirements exceed the previous year matching requirements. · Levies for certain expenses related to natural disasters. · Levies to pay abatements under Minn. Stat. § 469.1815. · Levies to pay increases in the employer contribution rate to the PERA coordinated plan that are effective after June 30, 2001. Levies to pay for operation of a lake improvement district. · Levies to repay a state of federal loan used to fund required spending for a state or federal transportation project or other state or federal capital project. · Levies to fund a required contribution for a police fire relief association, to the extent that the levy exceeds the amount levied in 2001. Cities must file PT Form 280 with the Dept. of Revenue to claim special levies. Form 280 must be completed and submitted to the Dept. of Revenue by Sept. 30, 2003. All special levy claims must be pre-approved by the Dept. of Revenue. The department will review the special levy claims and report back to the city by Dec. 10, 2003. The department will also certify to the county auditors, on or before Dec. 29 (five working days after Dec. 20), the stun of the levy limit and the approved special levies for each jurisdiction covered by levy limits. If the final levy certified by the city to the county auditor exceeds the sum of the levy limit plus the approved special levies, the county auditor must reduce the final certified levy to the sum of the levy limit plus special levies. The department's decision on a special levy approval, whether in the amount claimed by the city or at a reduced level, or the denial of a special levy is final. b. Estimating 2004 levy limit In rough terms, your 2004 levy will be limited to your 2004 certified levy; plus 60 percent of your reduction in LGA and MVHC from the originally certified 2003 amount to the actual 2004 amount after cuts; plus levies for new debt or other new special levies; minus levies for any expiring debt or other expiring special levies. For a more detailed discussion see the LMC 2003 law summaries booklet. Guidelines for Preparing City Budgets 2004 43 -2916- 2003 Minn. Laws ch. 127, art. 2, §17 Minn. Stat. § 275.73 2003 Minn. Laws Ist Spec. Sess. ch. 21, art. 8, § 7, mnending Minn. Stat. § 275.73, subd. 2, 2003 Minn. Laws 1st Spec. Sess. ch. 2[, art. 4, § 6 amending Minn. Stat. § 275.065, subd. 3(e) Minn. Stat. § 275.73 c. Home rule charter levy limits Generally, home rule charter cities with levy limits will have to observe the stricter of either the state-imposed levy limit or the local charter limit. In home rule cities under 2,500 population, any charter levy limits are still in effect. It remains the responsibility of city officials to enforce home rule charter levy limits. The 2003 Legislature added a two-year local charter levy limit override. It allows a charter city to exceed its charter limit or referendum requirements for levy increases if the increased levy is needed to offset reductions in city LGA. The exemption is effective for levies payable in 2004 and 2005 only. 5. Election to exceed levy limits A city may exceed its levy limit by an amount approved by the majority of voters on the question at a general or special election. When a city resolves to so increase its levy, the city shall provide for submission of the proposition of an additional levy at a general or special election. Notice of the election must be given in the manner required by law and must state the purpose and the maximum yearly amount of the additional levy. The 2003 Legislature changed the referendum election deadline from September 1 until the November general election, allowing cities more time to hold an election to exceed the levy limit. The truth-in-taxation law was also changed to except voter-approved levies from the proposed levy amounts shown on the truth-in-taxation notice. A levy override so authorized by the voters must be levied against net tax capacity unless the levy required voter approval under another general or special law or any charter provision. 6. Referendum levy elections for certain debt All city levies for which voter approval is required, except levies approved by voters to exceed levy limits, must be applied on the basis of referendum market value rather than tax capacity. A common example of this type of levy is debt service levies for the repayment of general obligation bonds. 44 League of Minnesota Cities -2917- Minn. Stat. § 475.58 2003 Minn. Laws ch. 127, art. 12, § 16, adding Minn. Stat. § 410.326 Minn. Stat. § 276.13l Minn. Stat. § 290A.04, subd. 2 Minn. Stat. § 290A.04, subd. 2 Several types of general obligation bonds, however, are excepted from referendum requirements. For example, cities are able to issue bonds for some street reconstruction projects without regard to the traditional election requirements. Also, the 2003 Legislature authorized cities to issue bonds without an election for certain capital improvements used as a city hall, public safety or public works facility. Levies applied on the basis of referendum market value fall more heavily on homestead property than levies applied on the basis of tax capacity. This is because agricultural and seasonal recreational residential property is exempt from the referendum market value definition, so the burden of a referendum levy falls exclusively on remaining classes of property, including homestead, apartment, and commercial industrial property. Cities must specifically advertise this referendum market value requirement as part of the referendum levy notice. 7. Property tax delinquencies Sometimes property tax payers do not pay their property taxes, which will reduce the city's property tax receipts for that year. When the delinquent property taxes are eventually collected, penalties and interest will be applied. Half the interest on tax delinquencies outstanding for more than one year is split between the city and county in proportion to their tax levy, with the other half going to the schools. All penalties on tax delinquencies are equally divided between counties and schools only. 8. Property tax relief programs The state provides direct property tax relief to property taxpayers in certain situations. These programs do not provide the city with any additional revenue, but they are based on the overall level of taxation in each community. Knowledge of these programs may be useful for the budgeting and truth-in-taxation process. a. Targeting Homeowners whose property taxes have increased by more than 12 percent and by more than $100 are eligible for a state-paid reimbursement of the tax increase. In addition, owners of non-commercial cabin property whose property taxes have increased by more than 10 percent and by more than $100 are eligible for a credit equal to 75 percent of the first $300 of the increase. b. Homeowners' refund Homeowners who pay property taxes in excess of a percentage of their income are eligible for a state-paid credit. The maximum credit is currently $1,500. The credit declines as income rises and is phased-out for incomes over $77,520. Eligible homeowners must complete and submit Form M-1 PR to the state. Guidelines for Preparing City Budgets 2004 45 -2918- Minn. Stat. § 290A.04, subd. 2a See MN Revenue Sales Tax Fact Sheet 164, Local S~es and Use Tax Minn. Stat. § 297A.99, subd.2 Minn. Stat. § 297A.99, subds. 5- 7 Minn. Stat. § 297A.99, subd. 9 Minn. Stat. § 297A.99, subd. 11 2003 Minn. Laws Ist Spec. Sess. ch. 21,art. 8, § 19 Minn. Stat. § 469.190 c. Renters' circuit breaker Renters who pay property taxes (through their rent) in excess of a percentage of their income are eligible for a state-paid credit. The credit declines as income rises and is phased-out for incomes over $41,820. Eligible renters must complete and submit Form M-1PR to the state. B. Local sales tax A growing number of cities have received specific legislative authority to impose a local sales tax for purchases made in or received within the city. For a list of local sales taxes, and a history and description of local taxes, see Minnesota Revenue Sales Tax Fact Sheet 164. Only Duluth has a sales tax for general use. All other local city sales taxes are dedicated for specific purposes and projects within the city. In order to impose a local sales tax, a city must obtain special legislation. Cities wanting special legislation for local sales tax must pass a resolution before requesting legislative approval of such a tax. The resolution must include information on the proposed tax rate and how the tax revenue will be used, the total revenues to be raised before the tax expires, and the estimated length of time the tax will be in effect. Minnesota statute provides for uniformity in the collection and administration of local sales taxes. The local rates apply to all taxable sales; complementary use tax applies with all local sales taxes; and all state exemptions from state sales tax also apply to local sales taxes. Cities cannot collect local sales tax from another political subdivision. The collection and administration of local sales tax is performed by the Dept. of Revenue. The department remits the collected local sales tax to the city on a quarterly basis. The remittance is reduced by the amount it costs the department to collect and administer the tax. The 2003 Legislature directed the commissioner of revenue to prepare a study of local sales taxes by Feb. 1, 2004, and make recommendations on the appropriate role of local sales taxes in the state and local revenue system. C. Local lodging taxes A city may pass an ordinance to impose up to a 3 percent tax on the gross receipts of lodging at a hotel, motel, rooming house, tourist court, resort or city campground. The law requires that 95 percent of the gross proceeds from the tax be used to fund a local convention or tourism bureau for the purpose of marketing and promoting the city. Separate rules govern lodging taxes adopted before 1972. 46 League of Minnesota Cities -2919- Minn. Stat. § 349.213, subd. 3 Minn. Stat. § 349.213, subd. l(a) See LMC research memo 255.7, Lawfi. fl Gambling 2003 Minn. Laws 1st Spec. Sess. ch. 21, art. 5, §§ 12-13 D. Gambling tax and fund Cities may impose up to a 3 percent local gambling tax on licensed gambling organizations in order to cover the cost of regulating lawful gambling. A city may not use these tax revenues for any other purpose. Cities may also require organizations conducting lawful gambling to contribute 10 percent of their net profits derived from lawful gambling to a city-administered fund to be disbursed for lawful purposes. Such funds cannot be used for the benefit of a pension or retirement fund. For further discussion of lawful gambling expenditures and regulation, see LMC research memo 255.7, Lawful Gambling. II. General state aid Cities in Minnesota receive a variety of shared revenues from the state. Each of these programs has a separate policy goal and, taken in combination, the programs and their impact on city finances can be confusing. The following sections describe these programs and their interaction with the city budget- setting process. A. Local government aid Local government aid (LGA) is intended to reduce disparities between cities in both revenue needs and taxable wealth by equalizing cities' ability to provide average level services at reasonable property tax rates. As part of its efforts to balance the state's budget, the 2003 Legislature reduced 2003 LGA by $122 million from the amount that was certified to cities last July. The Legislature reduced 2004 LGA by an additional $27 million. In addition to LGA reductions, the Legislature reduced the MVHC reimbursement to cities by $20 million in 2003 and in 2004. The LGA and MVHC reductions represent an approximate 25 percent cut in these programs for the 2004-05 biennium. The aid reductions for individual cities vary considerably. For estimates of LGA and MVHC reductions for your city, visit the LMC web site (www.lmnc.org) or see the LMC 2003 Law Summaries publication. Background LGA was originally established in 1971 as a per capita revenue sharing/property tax relief program that initially replaced the exempt property reimbursement program and the sales tax per capita aids. In 1973, the LGA program was expanded as cities lost other miscellaneous revenues. Guidelines for Preparing City Budgets 2004 47 -2920- 2003 Minn. Laws 1st Spec~ Sess. ch. 21 art. 5, § 7, mnending Minn. Stat. § 477A 013 Since the LGA program was created, the formula has been amended or changed frequently. In 1993, the Legislature enacted a new formula based on relative city "need" and tax base. That formula distributed aid for amounts above a grandfathered base of the LGA received in 1993. The old program would have distributed about $608 million to cities in 2004. New LGA Program The 2003 Legislature enacted a new LGA program that will distribute $437 million per year. The new program eliminates the 1993 grandfather aid base, although it maintains about $26 million in aid base for 42 cities that reflects increases in their total base since 1993. The new program does not provide for an automatic inflationary increase. The new program includes a new formula for cites over 2,500 population and an update of the existing formula for small cities. The new formula for cities over 2,500 population uses a number of statistical variables to measure each city's expenditure need. The new need formula variables include: (1) pre-1940 housing percentage, (2) population decline over the past 10 years, (3) accidents per capita, (4) average household size, (5) metro or non-metro, and (6) adjusted net tax capacity. Small cities of 2,500 population or less remain subject to the old need formula variables, which are: (1) pre-1940 housing percentage, (2) population decline 1990-2000, (3) commercial/industrial market value percentage, and (4) population. For all cities, expenditure need is compared to ability to pay, or revenue- raising capacity. Taconite aid will be phased-in to the ability-to-pay calculation. Cities that have spending needs that exceed their local ability to pay receive a share of the LGA distribution. Transition to new formula distribution Although the new formula is used to compute the initial aid for 2004 and beyond, the 2003 Legislature enacted several transition mechanisms to buffer the impact of the transition to the new formula for individual cities. For 2004, cities with populations under 2,500 may not experience an aid reduction larger than the greater of either 5 percent of certified 2003 aid or the amount of the 2003 aid cut. Beginning in 2005, cities with populations under 2,500 may not receive an aid reduction from one year to the next greater than 5 percent of the certified aid amount for 2003. This provision provides for up to a 20-year phase-in of the new formula amounts for small cities that experience significant aid reductions as a result of the new LGA formula. For 2005 and beyond, cities with populations over 2,500 may not receive aid reduction under the new formula from one year to the next greater than ten percent of the previous year's levy. This provides up to a five-year phase-in of the new formula amounts for larger cities that receive greatly reduced aid amounts under the new formula. Also, the change in total aid for any city shall not be greater than the previous year's levy by more than ten percent. 48 League of Minnesota Cities -2921 - Minn. Stat. § 477.4.015 Minn. Stat. § 477A.014 Minn, Stat. § 477A.014 Minn. Stat. § 273.1384 For taconite cities, the new aid formula phases-in the taconite aid distribution to each recipient city's "capacity" measure. The effect of the inclusion oftaconite aids is to reduce the LGA distribution to these cities-- in some cases dramatically. The taconite aids are phased-in in 25 percent increments over four years beginning with the 2005 aid distribution. The phase-ins for small cities and large cities described above would further mitigate the inclusion of the taconite aid phase-in. For example, the full effect of the taconite phase-in might not occur for some smaller cities for as long as 20 years. LGA Payments LGA payments are made to local units of government in two equal installments on or around July 20 and Dec. 26 each year. A city may request that all or part of its Dec~ 26 payment be made at anytime after Aug. 15 if the distribution is necessary to meet the city's cash flow needs. These requests should be directed to the commissioner of revenue. Notification and certification The commissioner of revenue will notify each city of its 2004 LGA distribution by Aug. 1, 2003. This notification includes the data and factors used to compute the LGA distribution. Cities have 60 days to appeal the calculation or factors used in the computation. City officials should use the official state LGA notification in the budget-setting process. Status of city for aid calculations In regard to annexation and consolidation, a city's population status on June 30 is used as the basis for the calculation and distribution of aid the subsequent year. B. Market value homestead credit The MVHC program replaced Homestead and Agricultural Credit Aid, which was repealed in 2002. Beginning with taxes payable in 2002, homesteads became eligible for state paid credit of as much as 0.4 percent of a home's market value. Homeowners do not apply for this credit--it's automatically applied and the state reimburses local governments for the value of the credit. The maximum credit is $304 per home. A home with a value of $76,000 receives the maximum credit. The credit is reduced by $9 per $10,000 of value in excess of $76,000--so, homes that are valued at $414,000 or more do not qualify for any credit. The full amount of MVHC does not go to cities. Rather, it is proportionately distributed among the various taxing districts in which the home is located. Guidelines for Preparing City Budgets 2004 49 -2922- Minn. Stat. Ch. 473F Minn. Stat. Ch. 276A Cities do not have to budget for MVHC. The credit will simply replace a portion of the property taxes that a homeowner would otherwise pay to the city with state revenues. If a city prepares estimates of the impact of the city's proposed property taxes on sample properties, however, the city may want to include the impact of MVHC in the estimates. For some cities, the 2003 and 2004 MVHC reimbursement will be reduced or eliminated. For more detail, see LGA aid cut discussion above and tables in the LMC 2003 Law Summaries publication. Cities will receive one-half of the post-cut state reimbursement for MVHC on Oct. 31 and the remaining one-half on Dec. 26. This payment structure means that a portion of the property tax receipts a city expects to receive with the first-half distribution of the property taxes from the county will be effectively delayed by more than three months. This could be an important cash flow consideration for cities with tax bases that are predominantly comprised of lower-value homes (homes generally under $100,000 market value). Market value homestead credit reimbursement due to tax increment financing districts is paid entirely on Dec. 26. This payment structure could impact the cash flow of TIF districts that are predominantly comprised of lower-value homes (homes generally under $100,000 market value). C. Low-income apartment aid The 2003 Legislature eliminated low-income apartment aid programs, which had been established for cities that lost tax base due to conversion of market-rate apartments to low-income status. D. Rental housing tax base replacement aid The 2003 Legislature eliminated rental housing tax base replacement aid, which was based on the reduction in tax capacity resulting from rental housing class rate reductions. E. Fiscal disparities programs Communities in the seven-county metro area participate in the metropolitan fiscal disparities program. Communities in parts of northeast Minnesota participate in a similar taconite tax relief area disparities program. Under these programs, communities in each area share a portion of the growth in commercial and industrial property value with other jurisdictions in their area. The programs redistribute this growth to municipalities in the respective programs through a formula based on population and market value of taxable property. 50 League of Minnesota Cities -2923- Designated county auditors (Anoka and St. Louis) administer the overall application of each fiscal disparities program, and each county auditor completes the necessary computations before the local property tax rates are computed. It is, therefore, not essential for each city official to understand the intricacies of the program. Because the fiscal disparities program has a significant bearing on local tax burdens, city officials in each area may want to understand the program's general structure and impact. Contribution Each city's tax base contribution to the fiscal disparities program is 40 percent of the growth in commercial/industrial tax capacity since the base year--1971 for the metropolitan program and 1995 for the taconite area program. This growth is not limited to new construction. The effects of inflation and revaluation of property are also considered in the growth calculation. Distribution Generally, each community receives a tax base distribution from the program based on the relative fiscal capacity of each community. Fiscal capacity is measured by market value per capita. Cities with relatively less fiscal capacity receive a larger distribution from the program. Impact on levies City officials are not required to make any adjustments to their levies as a result of the fiscal disparities program. The county auditor makes the adjustments before the local tax rates are computed. Each city raises a portion of its levy (known as the distribution levy) through the fiscal disparities program. The distribution levy is determined by multiplying the city's prior year tax rate by the distribution value. The distribution levy is subtracted from the certified levy before the local tax rate is computed. In this manner, a portion of each city's levy is raised from local taxpayers, and a portion is raised from all commercial and industrial property in the fiscal disparities area. Impact on taxpayers Non-commercial/industrial property owners are taxed entirely at the total local property tax rate that reflects the net impact of the fiscal disparities program on each community. The program may cause the local tax rate to be higher or lower depending on whether the city contributes more tax base value to the area-wide pool than they receive in distribution value. Commercial and industrial properties have approximately 30 percent of their tax capacity taxed at the area wide tax rate. The other 70 percent of their tax capacity is taxed at a local tax rate. The area-wide tax rate is the same throughout the fiscal disparities area; therefore, the overall property tax burden on commercial and industrial properties reflects less variation from community to community than property tax burdens on other types of properties. Guidelines for Preparing City Budgets 2004 51 -2924- Minn. Stat. §§ 69.011~.03l Minn Stat § 424A.08 Minn. Stat. § 69.02 , subd 5 Minn. Stat. § 69 011. subd 4 Minn. Stat. § 69.011, subd. 2 Minn. Stat. § 69.02l, subd. 4 Minn. Stat. § 69.011, subd. 4 Minn. Stat. § 69.0l 1. subd. 3 Minn. Stat. § 69.021, subd. 4 Minn. Stat. § 69.051 Minn. Stat. § 424A.02, subd. 3a Minn. Stat. § 424A.02, subd. 10 III. Categorical state aid Other aid programs distribute funds to cities for specific purposes. A. Fire and police state aid Another primary source of intergovernmental revenue is state aid for police and fire services. This money is apportioned as state aid to qualifying cities for fire and police retirement and relief. If there is no firefighters' relief association, then the fire aid must be used to maintain the fire department. Funding for these programs comes from the state general fund and is based on taxes paid to the state for certain insurance policies. 1. Fire state aid program a. Qualification In order to qualify for state aid for fire service, a city must have a city fire department that was organized prior to March 15 of the previous year, or have contracted with an independent or nonprofit firefighting corporation that provides relief and pension benefits to its members. To qualify for fire state aid, the clerk of a city with an organized fire department, or the secretary of an independent nonprofit firefighting corporation and the secretary and treasurer of the firefighter's relief association must jointly certify the existence of the department or corporation that meets the requirements for receiving state aid. The certification forms will be provided by the commissioner of revenue and must be sent back to the commissioner by March 15 each year. Qualification depends on all of the following factors: · Meeting minimum personnel, training and equipment standards. · Meeting annual financial reporting requirements. · Supplying any other information required by the commissioner. Upon completion of the determination of qualification (on or before Oct. 1) the commissioner will calculate the amount of fire and police state aid to be received by each city. If the relief association does not meet the financial disclosure provisions in the law, it will not qualify for the funds. Loss of state fire aid There is a penalty for paying relief association benefits in excess of the statutory limits. This penalty includes the loss of fire state aid. Volunteer firefighter relief associations must file a copy of revised bylaws with the state auditor when they are amended. Failure to do so could mean a loss of state aid until such documents have been filed. 52 League of Minnesota Cities -2925- Minn. Stat. § 69.021, subd. 7 Minn. Stat. § 69.011, subd. l(g) b. Distribution Fire state aid distribution from the state to cities and to relief associations affiliated with independent firefighters' nonprofit firefighting corporations is done in the same way. Cities will receive both an initial state aid and an additional minimum state aid. Initial state aid distributes about $18 million to qualifying departments based on the population and market value of the area served. The minimum state aid distributes approximately $2 million to departments based on the number of active firefighters who are members of the relief association. If your relief association was created after 1992, special caps may apply to your minimum state aid distribution. For further information, contact the Property Tax Division of the Dept. of Revenue or the League. Regardless of how it is calculated, fire state aid is paid to the city treasurer. If a duly incorporated relief association exists, the treasurer must transmit the aid within 30 days to the relief association if the association has filed a financial report with the city treasurer and has met all other statutory provisions pertinent to the aid apportionment. 2. Police state aid program a. Qualification To participate in the police state aid apportionment, the clerk of each city employing one or more police officers must file a certification of police officers. The certification forms are sent in December to all cities employing police officers. For police state aid purposes, a police officer is any person who meets all of the following criteria: Primary source of income from wages is from direct employment by a city as a law enforcement officer on a full-time basis of not less than 30 hours per week. · Has been employed for a minimum of six months before Dec. 31 preceding the current year's certification on March 15. · Sworn to enforce local ordinances and the general criminal laws of the state. · Authorized to arrest with a warrant. · Member of a local police relief association or the public employees' police and fire fund. · Certified or meets the requirements for certification by the Minnesota Peace Officers Standards and Training (POST) Board. Guidelines for Preparing City Budgets 2004 53 -2926- Minn. Stat. § 69.02l, subd. 7a Minn. Stat. § 69.031, subd. 5 Minn. Stat. § 69.011, subd. 2 Police state aid calculations depend on the number of full-time police officers, excluding part-time officers. If a city contracts with the county or another city for police service, the city must receive a credit applied to its contract of a proportionate amount of the state aid the county or city receives based on the number of full-time police officers providing service to the city. b. Distribution The city treasurer will disburse police state aid as follows. If the city has a police relief association, which is not phasing out, all of the police aid must go to the relief association. If the police retirement coverage is provided by the PERA Police and Fire Fund, all of the police state aid must be applied toward the city's employer contribution to the fund. If the city has a combination of both of the above, the city has the option to: Distribute all of the aid to the police relief association. · Distribute all of the aid to the employer's share of the PERA Police and Fire Fund. Distribute between both, with the city's employer contribution to the PERA fund based on the number of full-time police officers employed who are members of the fund. Some cities that had full-time fire departments prior to 1997 receive an additional fixed amount of police state aid. No new excess police aid is sent to any city for fire pension costs. Except for cities with local police or paid fire relief associations, fire and police state aid distributions should not exceed the amount of the city's obligation to the PERA Police and Fire Fund. March 14 is the last day for filing applications for state aid, fire equipment certificates, and the certification of police officers, as well as for filing the financial reports of fire and police relief associations. Audit reports and actuarial survey reports should be filed within 30 days of being received by the relief association. Questions about the apportionment of funds to the city, the filing of contracts, fire service area apportionment agreements, or qualifying for fire or police state aid or funding requirements should be directed to the Property Tax Division of the Dept. of Revenue at (651) 296-5141. 54 League of Minnesota Cities -2927- Minn. Stat. § 357.021, subds. 6, 7 Minn. R. 6700.1800, subps. 4, 5 Contact the POST Board for further information at (651) 643- 3060. Minn. Stat. § 423A.02 Minn. Stat. § 423A.02, subd. 2 B. Peace office training reimbursement Funds are available annually to help defray the costs incurred by local units of government to provide training to peace officers. The training costs must have been incurred after June 30 and before July 1 to be eligible for reimbursement. In late June, the Peace Officer Standard and Training (POST) Board will mail reimbursement application forms to law enforcement agencies. The forms must be completed and returned to the POST Board by Aug. 1. The reimbursement amount available per officer depends on the number of eligible officers and is not determined until all of the applications have been received. Large changes in the total number of police officers in the state could affect the total amount available. The final amounts will be determined and checks should be mailed to cities by mid-September. C. Amortization aid All local police and salaried firefighters' relief associations and consolidation accounts must amortize their actuarial deficits by Dec. 31, 2010. Three amortization state aid programs assist cities with relief associations and cities whose consolidation accounts have merged with the PERA Police and Fire fund to meet their amortization requirement. Portions of this aid also fund actuarial deficits in the first class city teacher funds and volunteer fire state aid. Loss of amortization aid entitlement When local police and salaried firefighter relief associations become fully funded, they lose entitlement to these aid distributions. Generally, once a city is out of these funding programs, they cannot become eligible again and lose these funds permanently except under limited circumstances. D. Street and highway funding The Minnesota Constitution requires that state gasoline taxes and motor vehicle registration fees provide funding for certain city, county, and state roads. These revenues are distributed through the highway user distribution fund. This fund is distributed by the Dept. of Transportation for state trunk highways and for certain county and city roads through the county state aid highway (CSAH) and municipal state aid (MSA) programs. Twenty-nine percent of the fund is dedicated for certain county roads and highways. Nine percent goes to cities with populations over 5,000. The remaining 62 percent is dedicated to the state trunk highway system. Guidelines for Preparing City Budgets 2004 55 -2928- Minn. Stat. § 162.09, subd 4 2002 Minn. Laws ch. 364, § 29 Minn. Stat. § 162.ll Minn. Stat. § 162.13 Minn. Stat. § 162.09, subd. 1 Minn. R. 8820.1400, subp. 3 Cities with populations of 5,000 or more The MSA program currently provides direct funding to approximately 130 cities with populations of 5,000 or more. Generally, population results from the latest U.S. census are used to determine a city's eligibility for MSA. For those cities that are created by the consolidation of two or more cities, the most recent population estimate of the Metropolitan Council or state demographer will be used to determine the city's population until the next U.S. census. In addition, if the annual population estimate prepared the Metropolitan Council or state demographer indicates that a city's population exceeds 5,000, the city can request a distribution based upon this estimate. An exception is made for cities between 4,900 and 5,000 in population. A city that has previously been classified as having a population of 5,000 or more for the purposes of the state aid system, and that has a population greater than 4,900 but less than 5,000 according to the federal census, is deemed to have a population of 5,000 for the purposes of the state aid system. An example of a city that would qualify under this law is the city of Chisholm. As a group, participating cities receive 9 percent of the highway user distribution fund. This money is apportioned to these cities on the basis of two factors: 50 percent is distributed on the basis of population in relation to the total population of all of the other cities receiving this aid. 50 percent is distributed on the basis of fiscal need. Specifically, the distribution considers the city's adjusted money needs in relation to the total needs of all the other cities receiving this aid. This is determined by the estimated costs of construction and maintenance on the city's municipal state aid streets over 25 years, annually identifying portions that need work and allotting appropriate amounts needed to carry out the work. The funds may only be spent on 20 percent of total miles of city streets and county highways within the jurisdiction, plus the additional miles of county and state roads turned back to the city. Cities must designate a minimum of either 25 percent of their total MSA distribution or $1,000 per kilometer of improved MSA streets towards general maintenance of MSA-designated streets. If cities wish to receive more than the minimum, they may request that up to 35 percent of the total distribution be used for general maintenance. The request for the maintenance distribution is due by Dec. 13 for funding for the next calendar year. For further information on the MSA program, contact: Office of State Aid, Department of Transportation, State Transportation Building, St. Paul, MN 55155. Telephone: (651) 296-1662. 56 League of Minnesota Cities -2929- Minn. Stat. § 162.08 Minn. Stat. § 162.08, subd. 4 Mime. R. 8820.1400, subp. lA Minn. Stat. § 161.081, subd. I Cities with populations less than 5,000 Smaller cities are not eligible for the direct state aid program. They do, however, have access to state funding for certain county and state roads that pass through their communities. Counties, like cities, are constitutionally guaranteed a portion of the highway user distribution fund. Twenty-nine percent of the fund is dedicated for certain county roads and highways. State law requires a portion of this aid to counties to be set aside for use on county state aid roads within the cities with populations of less than 5,000. The percentage allocated in each county for these roads depends on the estimated costs of construction projected over the next 25 years for the county state aid system roads that are within smaller cities. The total amount available for this municipal account varies widely from county to county. Those dollars the county does not spend on roads and highways in smaller cities will be spent on other county roads in the townships or unorganized areas of the county. The commissioner of transportation regulates compliance of county boards. Despite the requirement to set aside a portion of county state aid for cities, the county can divert this money for other uses. County boards can appeal to the commissioner of transportation for permission to use the money elsewhere in the county (such as outside small cities on county and township roads.). These requests can be made when the County State Aid system lying within cities under 5,000 population is improved to required standards. The commissioner can grant requests to use these funds on non-city roads. The CSAH municipal account is valuable to smaller cities. Cities should increase their efforts to use available set-aside funds. If they do not, counties are likely to lobby to eliminate the requirement. Smaller cities should also be aware that a minimum of 40 percent of the total allocation to each county is dedicated for maintenance. These funds can be available for maintenance of county roads that run through smaller cities. Some counties compensate the public works staff of their small cities for performing maintenance on county roads. City staff should check with their county highway departments to determine the amount of maintenance funds, if any, they will receive for 2004. E. Highway usertax distribution fund Town roads, bridges, and turnbacks Minnesota law, pursuant to article fourteen, section five of the state Constitution, requires 5 percent of the net highway user tax distribution fund (HUTDF) be set aside for use on municipal and state roads. The 5 percent formula is broken down as follows: · 30.5 percent devoted to the newly established town road account. Guidelines for Preparing City Budgets 2004 57 -2930- Minn. Stat. § 161.081 For more information on municipal licensing, see LMC Handbook for Mhmesota Cities Ch. I3 16 percent devoted to the town bridge account, allowing townships to use funds in the town bridge account to pay 100 percent of bridge rehabilitation and replacement costs. 53.5 percent devoted to the newly created flexible highway fund, to be used primarily to fund trunk highway turnbacks (approximately $30 million per year). The flexible highway fund includes turnbacks of county highways in the computation of MSA miles. The statue also requires the Dept. of Transportation to consult with the League of Minnesota Cities and the Association of Minnesota Counties (AMC) regarding the distribution of the HUTDF flexible fund's turn-back moneys. City and county officials make recommendations on how to divide the fund between cities, counties, and the state regarding turn-backs. The commissioner of transportation incorporates those recommendations in the department's biennial budget requests to the Governor's Office and Legislature. IV. Additional revenue sources There are other sources of revenue for cities, such as different types of fees for licenses, services, and ordinance violations, among others. Cities should be conservative when estimating these amounts as they can vary considerably from year to year. A. Licenses and permits Cities receive revenues from businesses and occupations licensed by the city, such as sales of food, beer, cigarettes, liquor establishments, bowling alleys, waste disposal contractors, and heating and utilities connections. This classification would include non-business licenses, such as those regulating dogs, signs, bicycles, and buildings. Whenever a city requires a license or permit, it may set a fee for the license or permit. In general, statutes granting authority to issue licenses do not specify maximum fees. In a few cases, however, the statutes set maximum fees for city licenses or prohibit fees. For instance, state law sets maximum fees for off-sale liquor licenses. Municipal licensing should not be viewed as a significant source of revenue. Generally license fees must approximate the direct and indirect costs in issuing the license and policing the licensed activities. License fees that significantly exceed these costs are generally considered to be taxes that a city does not have the authority to enact. 58 League of Minnesota Cities -2931 - Minn. Stat. § 16B.685 2003 Minn. l.,aws ch. 6, § 1, amending Minn. Stat. § 16B.685 Development fee reporting Minnesota statute mandates an annual report to the state regarding municipal development and construction fees and costs associated with services related to these activities. The 2003 Legislature amended the reporting requirement by extending the deadline to June 30 and exempting cities that collect $5,000 or less in fees. B. Charges for services Cities may also receive revenues from election filing fees, sales of maps and ordinances, assessment searches, court fees, police patrol and fire service fees, street and sidewalk repair, parking fees, refuse collection, water and sewer charges, inspection fees, and service charges such as those made by libraries, museums, and recreation facilities. C. Fines and forfeits The budget should include expected amounts from violations bureaus, courts, confiscated deposits, and collections on bonds or surety held for enforcement or security purposes. Cities should be careful that the expected revenues do not set an expectation that police issue a certain number of citations. Minn. Stat. § 216B.36 47 U.S.C.A. § 542 D. Enterprise funds These items would include expected transfers from various enterprises to reimburse the city for administrative activities performed by city staff, office overhead, unencumbered fund balances, etc., for departments such as municipal liquor stores or an electric utility. E. Franchise fees Cities are authorized to impose a franchise fee on utility services, such as gas, electric, and cable television. Franchise fees for gas and electric utilities are subject to negotiation. Cable franchise fees are limited to no more than 5 percent of the cable operator's gross revenues over a 12-month period. The revenues from franchise fees can be useful in offsetting a city's costs in regulating these businesses and maintaining and protecting the public right- of-way. In 2000, franchise fees reflected less than two percent of total city revenues. Guidelines for Preparing City Budgets 2004 59 -2932- Minn. Stat. § 275.065 Minn. Stat. § 275.07 Minn. Stat. § 275.065, subd. t(a) See Appendix C for sample resolution. Minn. Stat. § 275.065, subd 6(m) Part E. Truth-in-taxation In 1988, the Legislature adopted a program of notice and hearing requirmentg for pr0p0ged property taxeg, commonly referred to as truth-in- taxation (TNT). The TNT law requires cities to adopt a proposed budget and certify a proposed levy to the county auditor on or before Sept. 15. The county uses the proposed levy to prepare parcel-specific property tax notices. Further, the TNT program generally requires cities hold a series of public hearings between Nov. 29 and Dec. 20 to present the proposed levy and budget, and to provide an opportunity for the public to comment and make recommendations. The statute provides for the selection of hearing dates and specifies certain public advertisement requirements. Some cities are exempt from the TNT hearing requirement. Cities of 500 population or less are exempt from the TNT hearing process. Cities of over 500 population with nominal proposed property tax increases may also be exempt from holding TNT hearings. All cities must adopt a final levy and budget, certifying the final levy to the county auditor on or before Dec. 29, 2003. I. Proposed levy and budget All cities must adopt a proposed 2004 budget and certify a proposed 2004 levy to the county auditor on or before Sept. 15. The proposed levy is the total of all levies the city intends to impose, both general and special levies. (Any market value-based referendum levies must be certified separately from the rest of the city's proposed property tax.) With some limited exceptions, the TNT statute generally prohibits any subsequent increases in the proposed levy once adopted, and therefore, city officials should carefully consider their levy needs before certifying the proposed levy to the county. In contrast, the proposed budget is not subject to a restriction on subsequent increases. 60 League of Minnesota Cities -2933- Minn. Stat, § 275,065, subd. 6(b) Minn. Stat. § 275.065, subd, 6(b) Minn. Stat. § 275.065, subd. 6(j) II. TNT hearing exemptions A. Cities of 500 population or less Cities of 500 population or less are exempt from the TNT hearing requirements, including selection of hearings dates and the public advertisement requirements. Cities of 500 population or less must nonetheless: (1) adopt a proposed budget and levy and certify the proposed levy on or before Sept. 15, 2003; (2) adopt a final budget and levy and certify the final levy on or before Dec. 29, 2003. At the time the city certifies its proposed property tax levy, it may inform the county auditor that its proposed levy is also its final property tax levy, in which case no further certification is necessary. B. Cities with nominal tax increase A city over 500 population may be exempt from the TNT hearing requirements if there is only a nominal increase in the total 2004 proposed tax levy from the total 2003 final tax levy. The exemption applies if the increase is not greater than the percentage increase in the federal implicit price deflator (IPD) for government consumption expenditures and gross investments for state and local governments prepared by the Bureau of Economic Analysis of the U.S. Dept. of Commerce for the 12-month period ending March 31. (The IPD is a ratio of current dollar gross domestic product (GDP) to constant dollar GDP and is used to account for the effects of inflation.) For levy year 2003, taxes payable 2004, the percentage increase in the IPD is 3.47. The Dept. of Revenue will provide cities over 500 population with the information needed to make an exemption determination. The information will include the payable 2003 final total property tax levy, as well as the maximum proposed property tax levy the city may have for payable 2004 and still qualify for the exemption. The levy amounts compared to determine this exemption must be the city's total levy, both net tax capacity and market value based, as well as debt and non-debt. The exemption is from advertising and holding TNT hearings, but not from the requirement of selecting TNT hearing dates. For the purpose of parcel- specific notices, the county auditor will need to verify the city's exempt status. A city that qualifies for the exemption may nonetheless choose to advertise and hold TNT hearings. Guidelines for Preparing City Budgets 2004 61 -2934- Minn. Stm. § 275.065, subd. 6(~ Minn. Stat. § 275.065, subd. 6(b)-(e) Minn. Stat. § 275.065, subd. 6(1) Mimi. Stat. § 275.065, subd. 6(h) Minn. Stat. § 275.065, subd. 6(1) Minn, Stat. § 275.065, subd. 6(j) Minn. Stat. § 275.065, subd. 6(j) Minn. Stat. § 275.065, subd. 6(1) Minn. Stat. § 275.065, subd. 6(j) III. Selecting hearing dates The TNT process involves up to three hearings: two public comment hearings (an initial hearing and a continuation hearing if necessary), and a subsequent hearing. The public comment hearings are held to discuss the city's proposed budget and property tax levy for the following year. The subsequent hearing is held to adopt the city's final property tax levy. The public comment hearings must occur between Nov. 29 and Dec. 20. The continuation hearing must occur at least five business days, but not more than 14 business days, after the initial hearing. All public comment hearings must be held after 5 p.m., Monday through Friday, or anytime on Saturday. No public comment hearings may be scheduled on Sunday. The subsequent hearing must be held prior to Dec. 29. The subsequent hearing must be held on a date subsequent to the date of the initial public hearing. If a continuation hearing is held, the subsequent hearing must be held either immediately following the continuation hearing or on a date subsequent to the continuation hearing. The county auditor is responsible for coordinating the selection of hearing dates for the initial and continuation hearings for local units of government within the county, including cities. Cities are not required to schedule the date of the subsequent hearing through the county auditor. Cities must certify the dates on which they elect to have their initial hearing and continuation hearing to the county auditor at the same time the city certifies its proposed levy to the county auditor (on or before Sept. 15). Cities may not select an initial hearing date that conflicts with the initial hearing date of another taxing authority. Cities may, however, select a date for its continuation hearing that conflicts with the continuation hearing date of another taxing authority if it is not possible to avoid the conflict. A city can hold TNT public comment hearings on the night of a regularly scheduled city council meeting as long as that date is available. If this is the case, the city should separately convene the TNT hearing and the council meeting. For example, the city could convene the TNT hearing and adjourn to conduct the regular council meeting. The subsequent hearing may be held at a regularly scheduled council meeting or at a special meeting scheduled for the purpose of the subsequent hearing. By Aug. 20, the county auditor shall notify city clerks of the dates on which school districts and regional library districts have elected to hold their initial and continuation hearings. The first and second Mondays of December are reserved for the use of cities until Sept 15. In 2003, the reserved dates are Dec. 1 and Dec. 8. 62 League of Minnesota Cities -2935- Minn. Stat. § 275.065, subd. 6(13 Minn. Stat. § 275.065, subd 8 Minn. Stat. § 275.065, subd. 6(g) Minn. Stat. 275.065, subd. 6(b) Minn. Stat. 275.065, subd. 3 Minn. Stat. § 275.065, subd. 3(j) 2003 Minn. Laws 1st Spec. Sess. ch. 21, art. 4, § 6, amending Minn. SVat. § 275.065, subd. 3 Mi~m. Slat. § 275.065, subd. 3(c) In all counties except Ramsey, no city may select Dec. 4, 2003 (the first Thursday in December), for its initial hearing date since this date is set aside for county initial heatings. Within Ramsey County, cities may choose Dec. 4, 2003, for their initial hearing, but not Dec. 9, 2003 (the second Tuesday of December), since Dec. 9 is the date for Ramsey County, the city of St. Paul, and Independent School District No. 625 to hold their joint initial hearing. In addition, within the metropolitan area, no city may select Dec. 3, 2003 (the first Wednesday in December), for its initial hearing date since this date is set aside for the metropolitan special taxing districts to hold their joint initial hearing. Joint TNT hearings with county and school officials are authorized for cities with populations of 10,000 and over. Such cities can elect to hold a joint hearing by adopting a resolution, and by notifying the other taxing authorities and requesting that a member of the other body attend the joint hearing. IV. Parcel-specific notices Between Nov. 10 and Nov. 24, counties will prepare and send, by first class mail, parcel-specific notices of proposed property taxes to each property owner listed on the current assessment rolls. These notices show the impact of the proposed property tax levies of the city, county, school district, and special taxing districts on individual parcels of property. The notices include parcel-specific listings of the net taxes for TIF districts and for the fiscal disparities levy. Specific metropolitan taxing jurisdictions' levies are listed separately. Levies for all other special taxing districts are aggregated as a total "special taxing district" proposed levy amount. A city within the metropolitan area that is levying a property tax under Minn. Stat. § 473.388, subd. 7 to pay obligations issued by the city for capital expenditures for transit and other related activities may request that the city's parcel specific notices show a breakdown of the city's property tax between "regular city tax" and "transit tax," along with an explanatory statement. The parcel-specific form uses a layout that shows the current year's taxes payable and proposed taxes payable for the following year for each taxing jurisdiction. The 2003 Legislature modified the parcel-specific TNT form by eliminating columns that report the tax change due to "spending" factors and changes due to "other" factors. The TNT law was also changed to except voter-approved levies from the proposed levy amounts shown on the TNT notice. For each taxing authority required to hold TNT hearings, the parcel-specific notices must clearly state the time and place of each taxing authority's TNT hearing, a telephone number for the tax authority that taxpayers may call if they have questions related to the notice, and an address where comments will be received by mall. Guidelines for Preparing City Budgets 2004 63 -2936- Minn. Stat. § 275.065, subd. 5a M/tm Stat. § 275.065, subd. Sa(e) Minn. Stat. § 645.12, subd. Minn. Stat. § 275.065, subd. 5a(a) Minn. Slat. § 275.065, subd. Sa(b) See Appendix D for sample notice. Minn. Stat. § 275.065, subd. Sa(a) Minn. Stat. § 275.065, subd. Sa(c) See Appendix E for sample notice. Minn. Stat. § 275.065, subd Sa(a) V. Advertising requirements All cities required to hold TNT hearings must advertise the initial TNT hearing. Only the initial hearing must be advertised; the date and time of the continuation hearing, if necessary, will be announced at the initial hearing. Generally, the advertisement must include notice of the city's intent to adopt a property tax levy and budget for 2004, and the time, date, and location of the initial TNT hearing. The statute prescribes standardized advertisement forms that cities must follow. The specific advertisement requirements vary by city size. A. Cities of 500 population or less Cities of populations of 500 or less are exempt from the TNT hearing and advertising requirements. B. Cities over 500, but not more than 2,500 Cities with populations of over 500, but not more than 2,500, that are required to hold hearings must post a notice of their proposed tax levy in the three most public places in the city. The advertisement must be posted not less than two business days, nor more than six business days before the hearing. No published advertisement is required for these cities. The advertisement must be in the form specified in Minn. Stat. § 275.065, subd. 5a(b), and include notice of the city's intent to adopt a property tax levy and budget for 2004, and the time, date, and location of the initial TNT hearing. C. Cities over 2,500 population Cities with populations of more than 2,500 that are required to hold hearings must publish an advertisement at least the size of a one-eighth page standard size newspaper. The advertisement for these cities must be in the form specified in Minn. Stat. § 275.065, subd. 5a(c), and include information on the current local tax rate, the proposed rate if no levy increase is adopted, and the tax rate under the proposed budget in a form prescribed by statute. The advertisement must be published throughout the city (publication in more than one newspaper may be necessary) that includes local and/or state news and is published at least once a week. The advertisement must not be placed in the section of the newspaper that includes legal notices and classified advertisements. The advertisement must be published not less than two business days nor more than six business days before the hearing. 64 League of Minnesota Cities -2937- Minn. Stat. § 275.065, subd. 6 See discussion of "Selecting hearing dates" above. Minn. Stat. § 275.065, subd. 6(a)(1); Minn. Stat. § 275.065, subd. 6(b) Minn. Stat. § 275.065, subd. 6(d) Minn. Stat. § 275.065, subd. 6(a)(2) Minn. Stat. § 275.065, subd. 6(e) VI. TNT hearings The TNT law generally requires cities to hold a series of public hearings in order to present the proposed levy and budget, and to provide an opportunity for the public to comment and make recommendations. The TNT process involves up to three hearings: an initial hearing, a continuation hearing, and a subsequent hearing. The initial hearing, and the continuation hearing if necessary, is held to discuss the city's proposed budget and proposed property tax levy for the following year. The subsequent hearing is held to adopt the city's final property tax levy. The separation of the public comment hearings (initial and continuation) and the official adoption hearing (subsequent hearing) is intended to allow time for the city council to carefully consider and possibly incorporate concerns raised by the taxpayers. While many major decisions regarding the levy and budget may, in fact, be quite final by the time of the initial hearing, cities should listen to the comments and attempt to incorporate them where feasible. The initial and continuation hearings are held between Nov. 29 and Dec. 20. The continuation hearing must occur at least five business days, but not more than 14 business days, after the initial hearing. The subsequent hearing must be held prior to Dec. 29. A. Initial hearing The initial hearing is the first and primary public hearing held to discuss and seek public comment on the city's proposed budget and proposed property tax levy for the following year. The initial hearing must include a discussion of the percentage increase in any property taxes proposed by the city, if any, and the specific purposes for which the property tax revenues are being increased. During the discussion, the governing body must hear comments regarding a proposed increase and explain the reasons for the proposed increase. The public must be allowed to speak and ask questions. B. Continuation hearing The continuation hearing is a hearing held to complete the initial hearing, if the initial hearing is not completed on the scheduled date. If the initial hearing is not completed on its scheduled date, the city must announce (prior to adjournment of the initial hearing) the date, time, and place for the continuation of the hearing. Guidelines for Preparing City Budgets 2004 65 -2938- Minn. Stat. § 275.065, subd. 6(a)(3) Minn. Stat. § 275.065, subd. 6(I) Minn. Stat. § 275.065, subd. 6(I) Minn. Stat. § 275.07 See Appendix C for sample resolution. Minn. Stat. § 275.065, subd. 6(m) C. Subsequent hearing The subsequent hearing is held to adopt the city's final property tax levy and the final budget. The date, time, and place of the subsequent hearing may be announced at the initial public hearing or at the continuation hearing. At the subsequent hearing, the city may amend its proposed property tax levy and must adopt a final tax levy. The city may also amend its proposed budget and must adopt a final budget at the subsequent hearing. The final property tax levy must be adopted prior to the final budget. VII. Certification of final levy After official adoption of the final levy and budget, cities must certify their final property tax levies to their county auditors on or before Dec. 29 (five working days after Dec. 20). The final certified levy may be less than the proposed levy but it may not exceed the amount of the proposed levy. The few exceptions to this rule are: · Voter approved operating or capital expenditure levies: Levy increases for operating costs or capital expenditures approved by the voters at a referendum held after certification of the proposed levy; · Bond referendums: Levy increases to pay principal and interest on bonds approved by voters after certification of the proposed levy (does not apply to bonds issued without voter approval); · Natural disaster costs: Levy increases to cover costs incurred due to a natural disaster occurring after certification of the proposed levy (cities must appeal to the commissioner of revenue for approval); · Tort judgment costs: Levy increases for amounts necessary to pay tort judgments that become final after the proposed levy was certified (cites must appeal to the commissioner of revenue for approval). VIII. Compliance and enforcement State law authorizes the Dept. of Revenue to document compliance with the TNT requirements. Cities required to hold public TNT hearings must complete Form TNT-2002 and return it when the final levy is certified to the county. Cities whose final levy exceeds their proposed levy due to an allowable exception must also complete a supplemental form. The commissioner of revenue is responsible for determining whether local governments have fully complied with the TNT laws. If a city is found to be "substantially out of compliance," the city's property tax levy is limited to the amount levied in the previous year. No increase in the levy is allowed. 66 League of Minnesota Cities -2939- Minn. Stat, 275.065, subd. 4 Dates On or before 8/20/03: On or before 9/15/03: On or before 9/15/03: 11/10/03 to 11/24/03: 2 to 6 business days before initial hearing: 11/29/03 to 12/20/03: 5 to 14 business days after initial hearing, & no later than 12/20/03: Prior to 12/29/03: On or before 12/29/03: IX' Administrative costs No state funding is provided to administer the TNT process, so all costs incurred must be paid by the participating local governments. Counties may apportion their costs for the preparation and ma/ling of the notices among all of the participating local governments. If the county decides to apportion these costs, they must use a statutorily-specified apportionment formula. X. TNT Summary Chart Event County notifies cities over 500 of school district hearing dates. All cities adopt a proposed budget and certify a proposed levy. All cities over 500 population certify hearing dates. County auditor prepares and sends parcel-specific notices. Cities holding TNT hearings (cities over 500 whose proposed levy exceeds previous years levy by more than °A increase in IPD) must advertise initial hearing. Cities holding TNT hearings hold initial TNT hearing. Cities holding TNT hearings hold continuation hearing if necessary. Cities holding TNT hearings hold subsequent hearing to adopt final levy and budget. All cities must certify their final property tax levy. Guidelines for Preparing City Budgets 2004 67 -2940- See GASB web site (acountingRutgers.ed u/raw/gasb/i ndex.html) See OSA web site (,~vw. a ud itor. state, mn. us/) See GFOA web site (ww~v.gfoa.org/) Part F. Financial reporting There are a number of budget and financial statement reporting and publication requirements with which cities must comply. What follows is a summary of some of the relevant statutory requirements. Cities should consult with their city attorney and their accounting and auditing professionals as to the specifics of their compliance. 1. Fiscal year The fiscal year for all cities is the calendar year. This applies to all city funds. 2. GASB reporting standards In June 1999, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 34, which established new financial reporting standards for state and local governments throughout the United States. All cities that issue audited annual financial statements will need to comply with some or all of the GASB 34 standards for financial reporting. The authoritative audit guide suggests it would issue an adverse opinion on financial statements that are not in compliance with GASB34. GASB 34 is a financial reporting framework that measures the overall net financial condition of the city by taking into account all long-term assets and liabilities. One of the major aspects of GASB 34 is that long-term assets should be reported at initial cost less depreciation. GASB 34 implementation has been ongoing, with effective dates depending on the city's total annual revenues. While some cities have already had to implement the new reporting standards, others will need to comply beginning with the 2004 fiscal year. The implementation dates are as follows: 2002 fiscal year. This date applies to cities with annual revenues over $100 million. 2003 fiscal year. This date applies to cities with annual revenues that are at least $10 million, but less than $100 million. 2004 fiscal year. This date applies to cities with annual revenues under $10 million. The breadth and efforts that are required to implement the new standards may be substantial, and cities should budget for associated implementation and staffing costs. The new standards are lengthy and are not discussed in detail in this document. For further information on GASB 34, contact the Governmental Accounting Standards Board (GASB), the Minnesota Office of State Auditor, or the Government Finance Officers Association (GFOA). 68 League of Minnesota Cities -2941 - Minn. Stat. § 471.6965 See OSA web site for surmnary budget publication 1btm Minn. Stat. § 6.745 See ()SA web site for summary budget filing form Minn. Stat. § 471.698 Minn. Stat. § 471.698, subd. l(a) See OSA web site for finm~cial statement form pursmmt to Minn. Stat. § 471.698 3. Budget information a. Summary budget publication Annually, upon adoption of the city budget, the city council must publish a summary budget statement. The statement must contain information relating to anticipated revenues and expenditures in a form prescribed by the state auditor. The form allows for comparisons between the current year and the budget year. The statement must be published either: (1) in the official newspaper of the city, or if there is none, in a qualified newspaper of general circulation in the city; or (2) in a city newsletter or other city mailing sent to all households in the city. b. Summary budget filing Cities must also forward summary budget information to the state auditor, using forms prescribed by the state auditor. The summary data must include, separately, any net unrealized gains or losses from investments. This summary budget data must be provided to the state auditor no later than Jan. 31. Note that this form is different than the form for publication. 4. Annual financial statement After the close of the fiscal year, cities must prepare, publish, and file financial reports providing detailed annual financial statements. The specific requirements differ depending upon city size. a. Cities under 2,500 population In any city with a population of less than 2,500, according to the latest federal census, the clerk or chief financial officer must prepare an annual financial statement in accordance with Minn. Stat. § 471.698. Any city with a population of less than 2,500, however, may choose to comply instead with the provisions for larger cities under Minn. Stat. § 471.697, in which case the provision of Minn. Stat. § 471.698 would not apply. The city clerk must prepare a detailed statement of the financial affairs of the city in the style and form prescribed by the state auditor. The statement must show the following: · All moneys received, sources, and respective amounts. · All disbursements for which orders have been drawn upon the treasurer. · The amount of outstanding and unpaid orders. · All accounts payable. Guidelines for Preparing City Budgets 2004 69 -2942- Minn. Stat. § 471.698, subd. l(b) Minn. S 'tat. § 471.698, subd. l(c) Minn. S 'tat. § 471.698, subd. l(d) Minn. Stat. § 471.697 See OSA web site for financial statement fon'a pursuant to Minn. Stat. § 471.697 Minn. Stat. § 471.697, subd. l(a) Minn. Stat. § 471..697, subd. l(b) · All indebtedness. · Contingent liabilities. · All accounts receivable. · The amount of money remaining in the treasury. · All items necessary to accurately show the revenues, expenditures, and financial position of the city. The clerk must file the statement in the clerk's office for public inspection and present it to the city council within 45 days after the close of the fiscal year. The clerk must publish the statement within 90 days after the close of the fiscal year in a qualified newspaper of general circulation in the city. If there is no qualified newspaper, the clerk must post it in at least three public places in the city. If the city council proceedings are published monthly or quarterly, showing to whom and for what purpose orders are drawn upon the treasurer, the annual statement to be published may be summarized in such form as the state auditor may prescribe. It is not necessary to publish individual disbursements of less than $100, if disbursements aggregating $1,000 or more to any person, form or other entity are set forth in a schedule of major disbursements showing amounts paid out, to whom, and for what purpose, and are made a part of and published with the financial statement. The clerk must submit, within 90 days after the close of the fiscal year, a copy of the statement to the state auditor in such form as may be prescribed by the state auditor. b. Cities over 2,500 population In any city with a population of more than 2,500, according to the latest federal census, the clerk or chief financial officer must prepare an annual financial report and statements in accordance with Minn. Stat. § 471.697. At the close of the fiscal year, the clerk or chief financial officer must prepare the financial report covering the city's operations during the preceding fiscal year. The report must contain financial statements and disclosures that present the city's financial position and the results of city operations using generally accepted accounting principles. The clerk must file the financial report in his or her office for public inspection, and present it to the city council after the close of the fiscal year. One copy of the report shall be furnished to the state auditor after the close of the fiscal year. 70 League of Minnesota Cities -2943- Minn. Stat. § 471.697, subd. l(c) Minn. Stat. § 471.697, subd. l(e) Minn. Stat. § 471.697, subd. l(a) Minn. Stat. § 471.6985 Minn. Stat. § 471.6985, subd. I Minn. Stat. § 471.6985, subd. 2 Minn. Stat. § 471.699 Within 180 days after the close of the fiscal year, the clerk must submit to the state auditor audited financial statements that have been attested to by a certified public accountant, public accountant or the state auditor. The state auditor may, upon request of a city and a showing of inability to conform, extend the deadline. The state auditor may accept this report in lieu of the copy of the report filed by the clerk in his or her office for public inspection. A copy of the audited financial statement along with any management letter or other written findings or comments by the auditor must be provided to each city councilmember and the mayor no later than 30 days after the report is required to be submitted to the state auditor, and presented at a scheduled meeting of the city council prior to Oct. 31 of the year in which the report is submitted to the state auditor. The financial report, or a summary of the report, must be published using the state auditor's recommended form in a qualified newspaper of general circulation in the city. If there is no newspaper, the clerk must post copies in three of the most public places in the city. This must be done no later than 30 days after the report is due to the Office of the State Auditor. c. Municipal liquor financial statement Cities that operate municipal liquor stores must publish a balance sheet with a statement of liquor store operations within 90 days after the end of the fiscal year. At the option of the city council, the statement may be incorporated into the general financial reports published by the city. The statement must be written in clear and easily understandable language and must contain the following information: total sales, gross profits, profit as a percent of sales, operating expenses, operating income, contributions to and from other funds, capital expenditures, interest paid, and debt retired. The state auditor prescribes the form and style of the statement. Cities with stores having total sales in excess of $350,000 must submit within 180 days after the close of the fiscal year audited financial statements to the state auditor attested to by a certified public accountant, public accountant or the state auditor. The state auditor may provide a time extension. d. Enforcement power of state auditor If a city fails to file a financial statement or report required under Ch. 471 by the due date, the state auditor is authorized to send personnel to the city or to contract with a private firm to complete and file the financial statement or report. The city will be charged for these expenses. If the city fails to pay these charges within 30 days of billing, the state auditor will notify the commissioner of finance, who will then deduct this amount from any state aids or shared taxes owed to the city. The state auditor's annual report on cities includes a list of all cities failing to file a financial statement or report. Guidelines for Preparing City Budgets 2004 71 -2944- Minn. Stat. § 471.6995 A special exception to the deadlines for filing exists for cities located in areas that have been declared disaster areas. Minn. Stat. § 6.74 See ()SA financial reporting tbrms under Minn. Stat. § 6.74: GAAP (;ash Basis Minn. Stat. § 6.74 Minn. Stat. § 6.53 Minn. Stat. § 16B.685 2003 Minn. Laws ch. 6, § 1, amending Minn. Stat. § 16B.685 See Ch. 28 of the League's Handbook fbr Minnesota Cities 5. City reporting under Minn. Stat. § 6.74 Cities are required to report their financial activities annually to the Office of State Auditor under Minn. Stat. § 6.74. The OSA collects financial data that is used to provide uniform data to the Legislature, the Minnesota Dept. of Transportation, the U.S. Census Bureau, and other interested parties. The OSA sends out reporting forms to city clerks to be used to collect financial data. One form is for cities with audited financial statements prepared in accordance with generally accepted accounting principles (GAAP). Another form is sent to cities using the cash basis of accounting. Cities should ensure the forms are filled out properly and returned promptly. Anyone who refuses or neglects to obey lawful direction of the state auditor may be guilty of a felony with a minimum penalty of $3,000 or imprisonment. Completion of these forms pursuant to Minn. Stat. § 6.74 does NOT relieve cities of their responsibilities to prepare and publish financial statements under Minn. Stat. §§ 471.697, 471.698 or 471.6985. 6. Development fee reporting Minnesota statute mandates an annual report to the state regarding municipal development and construction fees and costs associated with services related to these activities. The 2003 Legislature amended the reporting requirement by extending the filing deadline to June 30, and exempting cities that collect $5,000 or less in fees. 7. Other types of financial reports In addition to statutorily required financial reports, cities may also prepare other kinds of financial reports. Cities prepare financial statements necessary for administrative and budgetary purposes, and financial statements used to inform the public about the city's financial condition. 72 League of Minnesota Cities -2945- Appendix A Estimated Expenditures* (sample form) Account Budget 2004 Budget City of Date 2002 2003 2004 Actual Estimated General government Mayor and Council Elections Financial administration City clerk Treasurer Assessor Auditing Legal Publications Personnel administration City buildings Land use planning Other Public safety Police Fire Protective inspections Civil defense Other Streets and highways Streets and alleys Snow removal Lighting Sanitation Sanitary sewers Storm sewers Sewage disposal plant Guidelines for Preparing City Budgets 2004 73 -2946- Account (continued) Budget 2OO2 2OO3 Actual 2004 Estimated (Sanitation--continued) Refuse collection and disposal Street cleaning Weed eradication Insect and pest control Health Health officer Other Park and recreation Recreation programs Facilities and buildings Parks and boulevards Library Debt service Miscellaneous Cemeteries Airport Off-street parking Insurance Judgements Other * Note: Accounts are based on the standard classification of accounts prepared by the state auditor. Other accounts may be added as necessary. 74 League of Minnesota Cities -2947- Account Taxes Appendix B Estimated Revenues* (sample form) City of Date 2004 Budget 2002 2003 Actual 2004 Estimated General property taxes Tax increment financing Franchise taxes Special assessments Licenses and permits Intergovernmental revenues Federal grants State grants Local government aid Firefighters' relief aid Police pension aid Police training aid Municipal state aid Other County grants Other Charges for services General government Public safety Parking Sewers Refuse disposal Recreation Libraries Other Fines and forfeits Guidelines for Preparing City Budgets 2004 75 -2948- Account (continued) 2002 2003 Actual 2004 Estimated Other revenue Investment interest Rents Borrowing Other * Note: Accounts are based on the standard classification of accounts prepared by the state auditor. Other accounts may be added if necessary. 76 League of Minnesota Cities -2949- Appendix C Sample resolution adopting proposed property tax levy These sample resolutions can be used by a city council in proposing and adopting the city tax levy. Home rule charter cities and certain other cities may need to modify this resolution to conform to other requirements. This information must be reported in dollar amounts. SAMPLE RESOLUTION ADOPTING PROPOSED TAX LEVY RESOLUTION NO. RESOLUTION APPROVING 2003 TAX LEVY, COLLECTIBLE IN 2004 Be it resolved by the council of the City of ) County of , Minnesota, that the following sums of money be levied for the current year, collectible in 2004, upon taxable property in the City of ., for the following purposes: Total levy $ The city clerk is hereby instructed to transmit a certified copy of this resolution to the county auditor of County, Minnesota. Adopted by the city council on Attest Mayor City Clerk Sample resolution adopting the final property tax levy SAMPLE RESOLUTION ADOPTING FINAL TAX LEVY RESOLUTION NO. RESOLUTION APPROVING 2003 TAX LEVY, COLLECTABLE IN 2004 Be it resolved by the city council of the City of , County of , Minnesota, that the following sums of money be levied for the current year, collectible in 2004, upon the taxable property in the City of , for the following purposes: Total levy $ The city clerk is hereby instructed to transmit a certified copy of this resolution to the county auditor of County, Minnesota. Adopted by the city council on Attest Mayor City Clerk Guidelines for Preparing City Budgets 2004 77 -2950- Appendix D (Sample posted notice for cities with populations of 501 to 2,500) (Based on sample issued by the Department of Revenue) NOTICE OF PROPOSED PROPERTY TAXES The (city) city council will hold a public hearing on its budget and on the amount of property taxes it is proposing to collect to pay for the costs of services the city will provide in 2004. ATTEND THE PUBLIC HEARING All (city) residents are invited to attend the public hearing of the city council to express their opinions on the budget and on the proposed amount of 2004 property taxes. The hearing will be held on: (Day/Date/Time) (Location/Address) 78 League of Minnesota Cities -2951 - Appendix E (Sample published notice for cities over 2,500 population) (Based on sample issued by the Department of Revenue) NOTICE OF PROPOSED TOTAL BUDGET AND PROPERTY TAXES The (city) city council will hold a public hearing on its budget and on the amount of property taxes it is proposing to collect to pay for the costs of services the city will provide in 2004. SPENDING: The total budget amounts below compare the city's 2003 total actual budget with the amount the city proposes to spend in 2004. 2003 Total Proposed 2004 Change from Actual Budget Budget 2003- 2004 $__ $.__ % TAXES: The property tax amounts below compare that portion of the current budget levied in property taxes in the city of (city) for 2003 with the property taxes the city proposes to collect in 2004. 2003 Property Proposed 2004 Change from Taxes Property Taxes 2003- 2004 $ $.__ % LOCAL TAX RATE COMPARISON: The following compares that city's current local tax rate, the city's tax rate for 2004 if no tax levy increase is adopted, and the city's proposed tax rate for 2004. 2003 2004 Tax Rate if 2004 Proposed Tax Rate NO Levy Increase Tax Rate % __% % ATTEND THE PUBLIC HEARING All (city) residents are invited to attend the public hearing of the city council to express their opinions on the budget and on the proposed amount of 2004 property taxes. The hearing will be held on: (Day/Date/Time) (Location/Address) If the discussion of the budget cannot be completed, a time and place for continuing the discussion will be announced at the hearing. You are also invited to send your written comments to: (City) (Location/Address) Guidelines/'or Preparing Budgets 2004 79 -2952- Appendix F Model Forms for Fuel Tax Refunds and Exemption 1) CERTIFICATE OF ULTIMATE PURCHASER (IRS Model) (To support a purchase of gasoline at a price that does not include excise tax by a state or local government for its exclusive use under section 6416 of the Internal Revenue Code.) Effective Date The undersigned purchaser ("Purchaser") hereby certifies that Purchaser bought or will buy for its exclusive use as a state or local government-- (Check one and enter necessary information) (quantity of gasoline); OR All the gasoline it buys; at a price that does not include gasoline excise tax from-- (name of' ultimate vendor) (address of ultimate vendor) If the gasoline is not used as specified above, Purchaser will so notify the person to whom Purchaser gives this certificate. Purchaser has not and will not claim a refund under section 6421 o£this gasoline tax. Purchaser understands that Purchaser or any other party may, for fraudulent use of the certificate, be subject under section 7201 to a fine of not more than $10,000, or imprisonment for not more than 5 years, or both, together with the costs o£ prosecution. Signature of authorized agent of Purchaser Title E.I.N. Name and Address of state or local government Source of form: Government Finance Officers Association, Federal Liaison Center (202) 429-2750 80 League of Minnesota Cities -2953- 2) CERTIFICATE OF ULTIMATE REGISTERED VENDOR (IRS Model) (To support a claim related to a sale of gasoline by a wholesaler at a price that does not include excise tax to a state or local government for its exclusive use under section 6416 of the Internal Revenue Code.) Effective Date The undersigned vendor ("Vendor") hereby certifies that Vendor sold the following amount of gasoline at a price that did not include the excise tax to-- (name of state or local government) A copy of the certificate of ultimate purchaser signed by such government is attached. __ (number of gallons), or % (percentage of vendor's purchases from supplier) Vendor purchased the gasoline from-- (name of Vendor's supplier) Vendor has the necessary records of sale to support this certificate. Vendor has not submitted any other certificate relating to the gasoline covered by this certificate. Vendor is not eligible to claim a credit or refund of gasoline excise tax under section 6416 for the gasoline covered by this certificate. Vendor understands that the fraudulent use of this statement may, under section 7201 of the Internal Revenue Code, subject the undersigned or any other party making such fraudulent use to a fine of not more than $10,000, or imprisonment for not more than 5 years, or both, together with the costs of prosecution. Signature of authorized Vendor Title T.I.N. Salne and Address of Vendor Source of form: Government Finance Officers Association, Federal Liaison Center (202) 429-2750 Guidelines for Preparing City Budgets 2004 81 -2954- 3) Model Diesel Fuel Tax Exemption Certificate (Provided in IRS Temporary Regulations) "CERTIFICATE OF FARMER OR STATE OR LOCAL GOVERNMENTAL UNIT" (To support vendor's claim for a credit or payment under section 6427 of the Internal Revenue Code) Name, address, and employer identification number of seller. The undersigned buyer ("Buyer") hereby certifies the following under penalties of perjury: Buyer will use the diesel fuel to which this certificate relates either--(check one) On a farm for farming purposes (as that term is defined in Sec. 48.6420-4 of the Manufacturers and Retailers Excise Tax Regulations); or For the exclusive use of a State, political subdivision of a State, or the District of Columbia. This certificate applies to the following (complete as applicable): If this is a single purchase certificate, check here Invoice or delivery ticket number. __ (number of gallons) and enter: If this is a certificate covering all purchases under a specified account or order number, check here Effective date Expiration date (period not to exceed I year after the effective date) Buyer account or order number and enter: be liable Buyer will provide a new certificate to the seller if any information in this certificate changes. If buyer uses the diesel fuel to which this certificate relates for a purpose other than stated in the certificate, Buyer will for the tax. Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Signature and date signed Printed or typed name of person signing Title of person signing Name of Buyer Employer identification number Address of Buyer Source of form: Government Finance Officers Association, Federal Liaison Center (202) 429-2750 82 League of Minnesota Cities -2955- Resource Guide For Dealing With Budget Cuts: Strategies for Cities A Supplement to Guidelines for Preparing City Budgets 2004 League of Minnesota Cities -2956- League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities League of Minnesota Cities 145 University Avenue West St. Paul, lVl2q 55103-2044 (651) 281-1200 · (800) 925-1122 TDD (651) 281-1290 · Fax (651) 281-1299 www.lmnc.org League of Minnesota Cities Copyright 2003 -2957- League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategi es for Cities Contents Introduction ......................................................................... ~ ...................... 1 Reducing or Eliminating Service ...... ........................................................ 3 Communicating with citizens about reductions ............................... 3 Liability considerations following cutbacks .................................... 4 Preparing for layoffs ........................................................................ 4 League resources .............................................................................. Other resources ................................................................................ 5 Revenue Enhancements: Non-Tax Revenue ............................................ 7 -Fees and'user charges ....................................................................... 7 League resources ........................................................................ 7 State and federal gasoline taxes ....................................................... 7 Transitional Fiscal Strategies .................................................................... 9 Levying for lost aid .......................................................................... 9 Using fund balances ......................................................................... 9 Increasing reliance on debt .............................................................. 9 Alternative Service Delivery Methods ................................................... 11 Cooperative an'angements ............................................................. 11 League surveys on cooperation ................................................ 12 League resources ...................................................................... 12 Other resources ........................................................................ 13 City examPles .......................................................................... 13 Privatization ................................................................................... 17 Resources ................................................................................. 18 City examples .......................................................................... 18 Cautions when hiring contractors .................................................. 18 League resources ...................................................................... 18 What Alternative Delivery Strategies Are Right For Your City ......... 19 Issues to consider ........................................................................... 19 Privatization: Issues to consider ..................................................... 21 Using volunteers ............................................................................ 22 League resources ............................................................................ 22 City examples ........................................................................... : ..... 22 Consolidation ............................................................................................ 25 League resources ............................................................................ 26 City examples ................................................................................. 26 Other Strategies for Efficiency ............................................................... 27 Purchasing alliances and joint purchasing ...................... · ............... 27 League resources ...................................................................... 27 Other resources ........................................................................ 27 City examples .......................... , ............................................... 27 Technology applications. ............................................................... 28 League resources ...................................................................... 28 Other resources ........................................................... : ............ 29 City examples .......................................................................... 29 -2958- League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities -2959- League of Minnesota Cities Kesource Guide for Dealing with Budget Cuts: Strategi~s for Cities Introduction For 2004, Minnesota cities are facing the most difficult financial circumstances in decades. Action by the 2003 Legislature has substantially reduced Local Government Aid and Market Value Homestead Credit payments to cities, while at the same time imposing some of the most severe levy limits in history on cities over 2,500 population. Cities will be considering a combination of strategies for meeting these challenges, including: · P~educing or even eliminating some services. · Increasing reliahce on user fees and other non-aid, non-tax sources of revenue. · Developing a transitional fiscal strategy. · Pursuing altemative service delivery methods. · Finding more efficient ways to operate the city. Each strategy has attractions, but also ~complications and pitfalls for the unwary. The League has prepared this supplement to the LMC Guidelines for Preparing City Budgets 2004 information memo to help city officials consider the options carefully, choosing those that make the most sensemnot only for short-term budget balancing, but also to achieve the long-term well-being of the community and the city government. -2960- League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities -2961 - League of Minnesota Cities Kesource Guide for Dealing with Budget Cuts: Strategies for Cities Reducing or Eliminating' Services As a result of the reductions in state aid, cities ~ound the state ~re contemplating cuts to services, capital improvements, and/or personnel. The League led roundtable discussions at the "Preparing for Cutbacks: The Kisks of Making. Tough Decisions" information sessions held during spring 2003 where city officials were asked what reductions might occur in city services or in city staff. The Municipal Clerks and Finance Officers Association held similar roumdtable discussions. The following are some examples of possible cuts from the discussions: · Eliminating police department positions · Eliminating fire department positions · Keducing or eliminating seasonal positions forsummer maintenance work (mowing, etc.) · Eliminating mosquito spraying program · Deferring street maintenance projects · Reducing city hall hours · Closing the library for one week · Keducing'libra~ hours · Making layoffs of city staff; instituting a hiring freeze · Eliminating the p~ks and recreation department · Snowplowing only after minimum of two or three inches · Cutting criminal prosecution positions · Selling fire equipment · Delaying capital projects and capital equipment purchases · Closing swimming pool; hockey rink (The full list of possible reductions discussed at the League's '?repare for Cutbacks' information sessions is available on the Dealing with Cutbacks page of the LMC web site at: www.lmnc/org/lmcit/cutbackresources.cfm) Each of these examples will impact city residents' daily lives as well as the lives of those who work in or visit a city. In choosing what kinds of cutbacks to make and how severe those cutbacks will bet cities shonld consider the impact they will have on the community. One Way to more fully understand the potential impact of service and/or personnel cuts is to invite community members to give feedback on the possible budget actions. Recently in New Brighton, for exarnple, city officials held a Community Values Forum during which citizens were asked to identifY: wh~t they valued most in the~ community. This priority-setting exercise will help city officials make budget cuts that reflect the needs and values of citizens. Communicating with citizens abOut reductions The League.has prepared several toOts to help city officials communicate wi~ citizens about the kinds of cuts cities will make in dealing~ with the state budget cuts. In addition to answers to frequently-asked questions about state aid, levy limits, and debt restrictions, the League~ s Communications & Strategic Initiatives Department has drafted a sample agenda for a town hall meeting that city officials can use to guide conversations about cuts with residents; There are also sample letters to the editor and sample resolutions. -2962- League of Minnesota Cities ~ ' .: ' ReSource Guide for Dealing with Budget Cuts: Strategi es for Cities These communication tools are available on the Dealing With: Cutbacks page 0fthe LMC web site at: www.lmnc/org/lnaeit/eutbaekresourees.efna Liability considerations following cutbacks Reducing staff or services can introduce important liability considerations for the city. Service or staff cutbacks could result in a higher risk of accidents and~or iujufies and more claims against the city. For exampIe, eliminating fire or police staffpositions could increase response times and risk of injuries and delaying sidewalk repairs could increase the chance that someone using the sidewalk falls and is injured. The legal principle of discretionary immunity protects a city from such claims if the city can show that its decisions to reduce services or personnel are planning level decisions that invoIve a balance of social, political, economic, and safety considerations. This important protection helps ensure that decisions about how to spend scarce resources are made by city officials and not by the judicial systera. In order to build strong rationale for claiming protection by discretionary immunity, city' officials should do a few things. First, cuts to services or personnel should be legislative decisions made by the city council. Second, all of the social, economic, political, and safety considerations must be taken into account during the decision-making process. Third, cities should maintain clear records that cover each step of the process. This includes keeping good minutes of council meetings and including several "whereas" statements in council resolutions so that alt of the considerations are clearly stated and on record. More in-depth information about discretionary immunity is available on the LMC web site (see League Resources section below). Preparing for layoffs The League has prepared a checklist for cities related to layoffs and other staff reductions. It describes the steps a city should take to prepare for layoffs. It is important for cities to ensure that all the relevant panics are kept informed ,throughout the process, including the city attorney. Cities should review all existing policiesrelated to layoffs and severance packages, Ifa severance package is offered to encourage employees to leave voluntarily, offering the package uniformly is a way to avoid discrimination claims. A city's union contract may stipulate whether or not the city is allowed to subcontract for bargaining unit w°rk in an effort to realize cost savings. Much like in the preparations for using discretionary ~unity~ cities should keep good records during the layoff process. Cities also need to consult requirements for continuation of group medical benefits. Flexible spending accounts may also be impacted by a layoff decision, The League checklist also includes guidance in determining.which positions to eliminate. Cities may consider a hiring freeze instead of layoffs, With ahiring freeZe, positions that are c~ticat or are one-person departments may have to be left vacant, This may have serious impacts on the quality and availability of a specific service. Any exceptions to the freeze should be clarified up front. Cities should consider solely business reasons in deciding Whom'to' lay off in order to avoid discrimination suks. Any contracts that the city has related to certain programs~ such as, building codes and inspections, should be reviewed during the~layoffprocess in order to avoid being out of compliance. The treatment of employees who are veterans is another issue: for cities to examine carefully. A' city may lay off a veteran if that individual is the least senior employee and the position is abolished. The veteran's job duties should not be assigned to less senior positions, as this may imply that the veteran's position was abolished simply to avoid the veteran's right to a hearing. -2963- League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategi e~ for Cities As part of the "Preparing for a Layoff and other Staffing Reductions: A Checklist for Ci~ies" document, the League details a few questions cities should ask when a layoffinvolves a veteran in order to make sure the decision was made in "good faith." Cities can also consider using early retirement incentives, directed at either the entire city staff or certain groups of employees. The incentive package needs to meet the requirements of the Equal Employment Opportunity Commission (EEOC) for "voluntary." To learn more about the requirements, visit the EEOC web site at: www. eeoc.gov/does/qanda-benefits.html Voluntary termination and voluntary leave are other options. Voluntary termination packages usually include some severance benefit not ordinarily available. Cities should work with their city attorneys to draft the agreements for employees to sign. If pursuing the voluntary leave option, cities need to consider employee morale, the impact on spending, payments for i~surance benefits, and the impacts on exempt versus non-exempt employees. Cities in Minnesota, like other employers, are responsible for maintaining unemployment insurance. Unlike private employers, however, most cities pay for unemployment insura.uce on a reimbursement basis to the Minnesota Unemployment Insurance Trust Fund. This will be an ongoing cost after employees are laid off. In general, the maximum amount of benefit is the lesser of 26 times the individual's weekly benefit amount or 1/3 of the individual's total base per/od wages. The Minnesota Employer's Unemployment Handbook (available online www.mnwfc, org) provides information on estimating an employee's potential unemployment benefits. Finally, keeping accurate records during the entire layoffprocess is important for building a case for discretionary immunity in the event of claims against the city. Cities are not bound by state or federal laws to give advance notice of layoffs, but each city should consult its own personnel policies, civil service rules, and union contracts. Cities should also determine their "call-back" criteria in advance of any layoffs. A systematic, consistent method should be used. If a city opts to use volunteers following layoffs, there may be important liability concerns. These are covered in another LMCIT memo, Covering the City's Volunteers (listed below). League resources: · Liability Considerations in Budget Cutbacks: Preserving Discretionary Immunity (pdf) www.lrnn c.org/pdfs/preserving% 20discretionary'% 20immunity.pdf · 10 Basic Principles of Discretionary Immunity (pdf) www. lmn c. org/p dfs/p rin tip als. dis cretion ary.immunity.p df · Exercising Discretion--Keeping Records to Support Immunity (pdf) www.lmnc.org/pdfs/discretion aryimmunity.pdf · Preparing for a Layoff and Other Staffing Reductions: A Chec'klistfor Local Governments www.lmnc, org/hr/Iayoffs.cfm · Covering the City's Volunteers (pdf): www.lmnc.org/pdfs/volart, pdf · LMC information on COBRA: www.lmnc.org/hr/cobramanual.cfm · Minnesota and COBRA Continuation Coverage (pdf): www.lmnc.org/pdfs/Cobra.pdf Other resources: Minnesota Employer's Unemployment Handbook: www.mnwfc.org Minnesota Department of Economic Security: www.mnwfc.org 5 -2964- League of Mirmesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for C/ties Revenue Enhancements: Non-Tax Revenue Fees and user charges In various roundtable discussions sponsored by the League and by the Municipal Clerks and Finance Officers Association, several cities indicated that they are considering instituting new fees and service charges as well as raising existing fees. Some of the fees and charges being discussed include those for pools, parks, funeral police escorts, community centers, fire calls, cemeteries, camping, administrative Services, inspections, mosqu/to spraying, franchise fees, gambling fees, and utility fees. Fees should equal the total cost of the service, minus any appropriation from the general fund to that service program. Cities should have a clear rationale for appropriating a portion of the general fund to fee-based service programs. If the service program has impacts on quality of life for the community as a whole, an appropriation from the general fund may make sense. Cities should make sure that the fees it charges for services accurately reflect the full cost of providing those services. A direct relationship between payments made and service delivered is the result of a careful examination of each element that goes into providing the service. It is important to determine the overhead, or fixed, costs of providing the service. Fixed costs include salaries, equipment, and facilities. Another important step is to chart where stafftime is directed. Cities should also include overhead or administrative costs for non-direct expenses, such as time spent by finance staff and city administrators. By clearly delineating relationships between the fees collected and the services provided, a city can identify opportun/ties for new user fees and charges. These relationships also allow the city to provide a clear rationale for charging for certain services. Cities are allowed to charge fees for public service enterprises such as hospitals, nursing homes, golf courses and utilities. They also commonly charge fees for: fire protection outside city limits, garbage and refuse disposal, recycling, street lighting, police escorts, sewer maintenance, non- city use of city hall, use of city recreation facilities such as pools or ice arenas, and use of park and picnic facilities. League resources: · LMC Handbook for Minnesota Cities, Chapter 22: Sources of Revenue www.lmnc, org/library/handbook, cfm State and federal gasoline taxes Gasoline purchases by cities are subject to the state tax on gasoline, currently set at 20 cents per gallon. Cities are eligible for a refund of this tax on gasoline used in vehicles for off-highway business use. For more detailed information about this refund and how to claim it, see LMC information memo, Guidelines for Preparing City Budgets 2004. Cities are exempt from paying federal excise taxes on gasoline and most diesel fuel purchased for the exclusive use of the city. There are different ways that cities can use this exemption. Details are provided in the LMC information memo, Guidelines for Preparing City Budgets 2004. ' -2965- 7 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategi~ for'Cities Transitional Fiscal Strategies In meeting the challenge of reduced state aids and severe levy limits (for cities over 2,500 population), cities may consider different fiscal strategies. As part of a single- or multi-year strategy, cities could decide to levy for lost aid, use fund balances, increase their reliance on debt or pursue a combination of these three options. Levying for lost aM The Legislature passed new levy limits for 2004 for cities over 2,500 population. Cities will be allowed to increase their property tax for up to 60 percent of lost state aid, but levy limits do not include any of the traditional levy growth adjustments for inflation, household growth or commercial/industrial growth. The 60 percent is based on the difference between certified 2003 local government aid (LGA) and market value homestead credit (MVHC) and the reduced 2004 LGA and MVHC. If cities have unused levy authority from 2003, they will lose all of that unused levy authority for taxes payable in 2004. Cities will also be allowed to levy for debt service payments. Using fund balances While cities may consider depleting their fund balances as way to deal with the budget cuts, there are several important issues to keep in mind about taking this step. Since in many cases cities build up reserve funds for capital improvements and purchases, using reserves for other purposes may mean having to delay critical infrastructure projects or maintenance. Delaying these projects could increase their cost. Fund balances are also built up so that a city has rainy day funds. Depleting the reserves may mean that a city is unable to mitigate future cash flow problems or respond adequately to natural disasters or other emergencies. Bond rating fn'ms, such as Moody's, take a city's fund balance into account when giving a city a rating. Depleting reserves could lower a city's bond rating, making future borrowing more expensive for taxpayers. Finally, fund balances are one-time dollars, wkile reductions to aids are in many cases permanent. Cities should exercise caution in using fund balances to cover long- term shortfalls. This will only delay difficult decisions and may put a city in an even more precarious financial situation. Cities should also have plans in place for restoring balances to an appropriate level. The League has prepared a brief overview of fund balances, including how the state auditor reports fund balances, uses for fund balances, and the role of a fund balance in a city's overall financial health. The information is available in the Policy Research section of the LMC web site at: www.lmne.org Increasing reliance on debt Another strategy for dealing with budget shortfalls may be to replace general fund expenditures (direct purchasing) with borrowing when possible. An example would be to use dollars from a revolving capital improvement fund for one-time spending, and then borrow for capital projects. Another example is to purchase capital eqUipment bonds or other legally-authorized instruments for which repayment is outside levy limits. As with depleting fund balances, cities should exercise caution if increasing reliance on debt. Much as a city's fund balance can influence the -2966- League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities city's bond rating, heavy reliance on d.ebt may result in a lower bond rating since the city Will be bound by future debt obligations mad might present a higher risk for lenders. When considering increasing debt, cities should also carefully analyze how paying off those additional debts will fit into future city budgets. Having too much debt to Pay off each year could result in cash flow problems for a city. t0 -2967- League of'Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities Alternative Service Delivery Methods Traditionally, services and programs were established when cities recognized a particular need in the community and organized city employees to perform taSks in order to meet that need. With budget cuts, cities are looking at alternative ways to meet the needs of their communities. There are several different ways to deliver services that cities can consider: entering into cooperative agreements or contracts with other units of local government, consolidating with other local units, and contracting out to the private sector. For example, the cities in Scott County recently formed the Scott County Alliance for Leadership and EffiCiencY. City officials meet to discuss potential ways. to share equipment and resources. This section discusses these kinds of arrangements and suggests seVeral resources to cities for further information. Examples of cities that have used these alternatives are provided as well. Following the discussion and the examplesiS a checklist of important issues for cities to examine when considering alternative service delivery methods. Finally, there is a brief section on using volunteers to provide services. Cooperative arrangements Cities in MinnesOta have the authority to enter into joint powers agreements with other cities, counties, townships, school districts, and special purpose districts (MS 471.59, Joint Powers Act). The statutes allow cities to exercise collectively anY' power authorized individually. Some joint powers agreements create separate joint entities, while others do not. An example of a separate entity is a board formed by a joint powers agreement to operate and maintain a swimming pool. Beyond the Joint Powers Act, cities also have statutory authority to enter into joint agreements in several specific areas, such as to employ a joint assessor, to jointlY maintain public cemeteries, to jointly operate a municipal police department; to contract for police protection Or to jointly operate ambulance service. Any of these may also be done under a j ointi~oWers agreement. Finally, cities can undertake joint programs for administrative functions like sharing personnel such as building inspectors. ' Other cooperative arrangements are mutual aid agreements and Service'COntiaCts. Under mutual aid agreements, each participant agrees to Provide assistance and/or equipm~t in specific circumstances such as a fn:e emergency. The cities in the Scott. County A~iauce are looking at forming a countywide mutual aid agreement for police and/or fire services. Service contracts involve one or more units of local government Paying mother ~f for the.provision of Some service. Cities are also authorized to discharge certain responsibilities by contracting with their cOunty boards. Some examples are Contracts for library SerVice, police PrOteCtion, and piann/ng/land use ass/stance. In a recent example, the city of Foley voted to eliminate the Foley Police Department and pay the county for police services. The county will We three' ~Uil-tinie deputies to serve Foley starting in late summer. In additiori to entering agreements with thek counties, cities can also contract with other cities for library, police, and planning serviceS:" -2968- 11 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities League surveys on cooperation The League recently completed an informal survey of Minnesota cities and a review of the League's files to learn about the kinds of cooperative agreements in which cities have participated. It is important to point out that these are only the agreements of which the League is aware. It is likely that there are and have been many more formal and informal agreements in effect throughout the ~tate. The League did a more comprehensive ~urvey in 1999 and respondents then reported 1,800 cooperative agreements. The 718 agreements (past and current) for which the League has some basic information break down into the following categories: Type % of Agreements Type % of Agreements Police/Law Enforcement 19% Transit 3% Parks and Recreation 15% Cable/Utilities 2% Fire Services 13% Combined Police and Fire 2% General Govemment/Admin. 12% Libraries 2% Sanitation 11% Natural Resources 2% Economic Dev./Housing 6% Public Works 2% Streets and Highways 5% Airports 1% Health 5% Roughly one-third of these agreements are joint powers entities, formed most often for public safety, recreation, sanitation, and general government services. Most of the mutual aid agreements and service contracts are for fire and police. League resources,: · Combining Government Services--Issues to Consider (pdt') www.lnmc.org/pdfs/eombining%20governmental%20serviees.pdf · Combining Police De. partments--Issues to Consider (pdf) www.lmnc.org/pdfs/j ointpowersmemo.pdf · Liability Coverage for Joint Powers Agreements (pdf) www.lmne, org/pdfs/Jtpower.pdf · Model MutualAidAgreement (pdt) www.lmnc.org/pdfs/mutualaidmodel, pdf · Fire Department Mutual Aid System for Extraordinary Incidents (pdt) www.lmnc.org/pdfs/mutualaidfire.pdf · Sample City, City Service. Contract for Law Enforcement Services (pdt) www.lmne.org/pdfslcity-eityjp.pdf · Sample City-County Service Contract for Law Enforcement Services (pdt) www.lmnc,org/pdfs/city-countyagreement.pdf · Sample Police Department Consolidation Agreement--Centerville, Circle Pines, Lexington (pd0 www.lmne.org/pdfs/eonsolidation-ecl.pdf · Samplepolice.dePartment consolidation agreement--Excelsior, Deephaven, Greenwood, Shorewood, Tonka Bay (pdt) www.lmn e.org!pdfs/consolidation-edgst.pdf · LMC Handbook for Minnesota Cities, Chapter 19: Intergovernmental Cooperation www.lmnc.org/library/handbook.cfm 12 -2969- League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strateg/~s for Cities Other · resources: Fire/EMS Safety Center: Guidelines for Minnesota Fire Protection Contracts www.firecenter.mnseu,edu Best practices reviews from the Office of the Legislative Auditor that feature examples of and recommendations for cooperation (fire services, snow and ice removal, 911 dispatching, local e-government) www.auditor.leg.state.mn.us City examples: Sources: LMC City Achievement Award Applications (indicated by year in parentheses); Legislative Auditor Best Practices Keviews; LMC joint powers files. City examples: Public Safety Anoka County Dispatching System Anoka County has agreements with all of the cries within the county for emergency radio services. The arrangement dates back to 1973, when the Anoka County Central Commm-fications started providing services in an effort coordinated by the Anoka County Joint Law Enforcement Council. In 2002, special legislation gave the county the authority to bond for upgrading th~ radio systems. Anoka County Criminal Investigation Felony-level investigation services (e.g. homicides, child abuse, hazardous waste crimes) and crime scene processing are provided by the county's criminal investigation division to all the police departments within the county. While local police departments within the coUnty still patrol independently, investigations into felonies are jointly performed. Brooklyn Park (2002) The city's fire department provides joint training with the Anoka-Hennepin Technical College for firefighters. Brooklyn Park, Golden Valley, Maple Grove (2002) Along with North Hennepin Community College, the cities provide supervisory training to department supervisors. MnSCU Fire Training Voucher funds are used for the project. Brooklyn Center, Brooklyn Park, Crystal, Maple Grove, New Hope & Plymouth Cities operate a joint animal impound facility, Pets Under Police Security (PUPS), New Hope & Crystal New Hope and Crystal began operating their on-call fire departments as a joint fire district, the West Metro Fire-Rescue District, in 1998. Responses are now based on proximity to the three fire stations, and fire prevention efforts, including code enforcement and fire safety education, are consistent throughout the district. The joint department also established a vehicle replacement program. Recently, the two cities approved a study to examine the impacts of consolidating their police departments. -2970- 13 Le~u~ of Minnesota Cities Kesourc~ Guide for De~ling with Budget Cuts: Strategics for Ci~ies North Suburban Regional Mutual Aid Association Cities in the Association share specialized expertise when emergencies occur. Decontamination of hazardous materials spills, dive and rescue services, and trench rescues are some of the specialized skills that different cities can offer to each other. Member cities include Fridley, Plymouth, Brooklyn Park, Brooklyn Center, West Metro Fire Department (New Hope a.nd Cry~tal), and Maple Grove. Northfield, Faribault, Owatonna & Rice and Steele Counties These local units of government formed a joint powers agreement to merge their Public Sa2ety Answering Points (PSAPs) into one and share in the cost of technological improvements to the system. All of the participants were involved in the planning and implementation of this merger process. Thief River Falls & Pennington County The city and county share a law enforcement center for the police and the county sheriff. The local units share in the Costs of the dispatch service and maintenance of the general work areas. ' Winnebago The Winnebago Fire Department participates in joint training of fire fighters with all the fire departments in Faribault County. The joint training allows the departments to be able to afford instructors from the techn/cal college. The departments also participate in mutual aid associations and share a master list of specialized equipment and its location. Thedepartments also participate in joint purchasing of equipment. City examples: Parks and Recreation Brooklyn Park (2003 winner) The city and the Osseo School District worked together to improve Zanewood School and Park site as part of the city's development effort for the Zane Avenue Corridor and Brooklyn Boulevard area. The surrounding community had a high immigrant population, creating a need for a facility and programs, including outreach services. The City and District applied for a state grant to renovate the old park building into a new youth center. Both contributed to joint construction of the new center. They formed a joint powers to allow district to build on city property Cannon Falls Cannon Fails joined other area cities in a joint powers agreement to operate and maintain the Cannon Valley Trail. Spring Lake Park& Mounds View (2002) Spring Lake Park co-owns a park with the city of Mounds' View. The cities share in maintenance and development of the park. The local lions club donated funds to the park. 14 -2971 - League of MinneSota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities City examples:' General Government Montgomery (2003 winner) The city, the school, and the Chamber of Commerce share a schooYcommunity resource coordinator. Three organizations had needs for communication, community liaison work, outreach, public relations, and promotion management. They pooled resources to attract and retain a professional with desired skills and experience. The city, school~ and chamber all · rd ...... contribute roughly 1/3 of the compensation package. The resource coordinator is bmldxng relationships and support networks with city leadership and improving communications with citizens. New Hope & Crystal (2003) New Hope is working with citY of Crystal in planning development for the end of the Bass Lake Road Corridor that falls in Crystal's jurisdiction. A Livable Communities Demonstration Grant from the Metropolitan Council was awarded to the city in 2000· City is also working with the school district and a non-profit housing developer· Western Area Cities/Counties Cooperative (WACCO) (1995 winner) Eighteen cities and seven counties in West Central Minnesota formed a joint powers agreement to share equipment, human resources, training, and purchasing. City examples: Transit, Streets, and Highways Burnsville, Apple Valley, Eagan, Rosemount, Savage, Prior Lake, Shakopee & Inver Grove Heights Cities formed a joint powers agreement for traffic markings, street sweeping and seal coating. Chanhassen, Chaska & Eden Prairie The cities formed a joint powers entity, Southwest Metro Transit, to provide public transportation in their communitieS. Crystal & Golden Valley The cities formed a joint Powers agreement for'long-term maintenance of the pedestrian bridge over Highway 100, City examples: Miscellaneous Belle Plaine, Elko, New Market, Jordan, Prior Lake & Savage (1996 winner) Cities in Scott County joined in the Scott-Joint Prosecution Association to share a staff attorney for prosecutorial se~ceS~. Sharing an attorney has led ~o faste~ reSolUtions, higher fine revenues, more recovered prosecution costs, and increased confidence in the court system· Police deparlxnents and the association cooperate well and cities can trust in having an experienced attorney for their cases. Consistency among the different cities for similar cases and sentencing has improved. -2972- 15 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities Brooklyn Center, Brooklyn Park, Crystal, New Hope & Robbinsdale (1994 winner) These cities formed the Co-op Northwest in 1991 as a collaborative initiative of Northwest Hennepin Human Services Council to address a range of service needs. The cities coordinate their efforts in order to develop solutions to housing, employment, and human services in their communities. Staff from the Council work with city staff in addressing needs common to each city. The Co-op has worked on reflecting the changing needs of increasingly multicultural communities in the services delivered and has developed a Workforce Initiative to strengthen and diversify the local workforce. Chatfield (2003) The city and the school district collaborated on a project to establish community television. The City provides franchise fee revenues and oversight while the district provides technical support, space and human resources, including student volunte~s. Chatfield Community TV (CCTV) has enabled citizens to get accurate information in a timely fashion and to enjoy watching city events. Hutchinson (2002) Hutchinson owns a tempesting facility and the city, McLe°d County, and several surrounding communities joined together to start a recycling initiative. Residents now separate organic waste from other household waste and set on curb in biodegradable bags. City has seen significant savings in landfill charges (reduced landfill dumping by 35%). The project received an Environmental Assistance grant. Mankato (2002) The city and the Mankato Area Public Schools jointly produce communications pieces for community residents, including the public school dates calendar, media handbook, radio talk shows, and community television. Rollingstone (1996 Winner) Facing the possibility of rural school consolidation, citizens of the city of Rollingstone formed a committee to seek planning grants and technology funds in order to build their own school. The city funded the architectural plan and various groups, including the Jaycees, pledged money to the effort. City offices are included in the school building to lower overall operating costs for both the city and the school. Council meetings, public hearings, and voting are all held in the school. City examples: Service Contracts Source: informal 2003 LMC survey on contracts Bayport. Bayport paid the city of Oak Park Heights for building inspection services. Gem Lake. Gem Lake paid the city of Vadnais Heights for sewer and water service and snowplowing. Grant & Willernie. Grant and Willernie paid Mahotmedi for fire services. Greenfield. Greenfield paid the city of Rockford for fire services. 16 -2973- League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities Hilltop. Hilltop paid the city of Columbia Heights for police services. Landfall. Landfall paid the city of Maplewood for police services. Mendota Heights & South St. Paul. Mendota Heights and South St. Paul paid the city of West St. Paul for dispatch services. Rosemount. Rosemount paid the city of Eagan for dispatching services. Woodland. Woodland paid the city of Deephaven for administrative, planning, and police services. Privatization As another strategy, cities may choose to enter service contracts with private or not-for-profit fn'ms. Privatization can bring about savings through more efficient delivery of a service. By opening up local provision of services to competition in the marketplace, cost savings axed increased responsiveness may be realized. Further, local governments may be able to access expertise and technology resources available in the private sector. None of these benefits are certainties however, and cities should be cautious when considering privatizing services or functions. According to research by the International City/County Management Association, privatization of public works, public utilities, and some public safety functions, like dispatching, are mom likely candidates for privatization with for-profit firms, For-profit priVatizatio~, according to this research, works better when the service can be easily specified, there is competition among supphers, and the service includes indirect elements or steps involved in providing the service that citizens do not directly experience. Privatization of healthand truman services and serdces related to the arts most often involve non-profit fmus (Dannin, 2001'). Cities in Minnesota have contracted out a wide range of services, including sewers, waste management~ animal control, cemeteries, supplemental snowplowing and snOw hauling, towing, and nursing homes. Cities routinely contract With consulting engineers, fm..ancial advisors, or urb an p larming fn-ms. Privatizing a service may create new costs for a city because city staff may be needed to monitor or oversee the private firm'S performance in order to ensure quality. Whether or not a for-profit firm can truly provide a service at lower cost and still create profit for their investors is au important issue to exam/ne. IftlSe firm lowers its costs by cutting wages and benefits, Worker morale and motivation may suffer, which in turn may lower the quality of the service (Warner and Hefetz, 2001'). Public employee union members are typically strong opponents of privatization, as their core job responsibilities may change considerably or the positions that they fill may no longer be required. Accountability is an important consideration in privatizing Public services. Will the firm sub-contract for some elements of the service? How reliable will the service be and will it be accessible to residents of the community? -2974- 17 League of Mirmesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities Resources; · Economic Policy Institute: www.epinet, org · American Federation of State, County, and Municipal Employees: www.afscme.org · Reason Public Policy Institute (think tank on privatization): www.rppi.org City examples: Source: contact with city officials, 2003. Apple Valley. Apple Valley contracts with RMR Services, LLC for meter reading services. Breezy Point. Breezy Point has contracted with a private fm-n for animal control services within the city for roughly 7 years. Eagan. Eagan contracts with an independent contractor for supplemental snowplowing services during the snow season. The contractor is responsible for three routes in the city and plows whenever the city crews are plowing. The contract allows the city to clear the streets faster and maintain a level of service to its citizens. Hinckley & Sandstone. These cities contract with PeoPle Service to do readings of the water meters. People Service, is based out of Nebraska and serves several cities in southern Iv[innesota as well as cities in Iowa, Illinois, and Nebraska. People Service bought equipment and the cost is amortized over a period of five years in the operating contract. Pine Island, Sandstone, Hinckley, Askov & Finlayson. The cities also contract with People Service for operation of its water and sewer systems. Caution when hiring contractors Cities hire contractors for a wide range of projects. There are important 'insurance and liability considerations for cities that do so. One of the critical issues is how a contractor is treated in matters of workers' compensation insurance, either as an employee or as an independent contractor. While statutes requ/re contractors to show compliance with state law regarding this insurance, this does not mean that all contractors have the insurance. In order to avoid being held responsible for workers' compensation benefits for contractors who do not have workers' compensation insurance, cities should examine several factors. First, examine who has the right to control the means and manner of performance. With an independent contractor, the city, as hiring party, only specifies what the final result is to be and the contractor decides on what equipment to use and in what order to complete tasks. Second, independent contractor relationships are usually characterized by payment per project rather than an hourly wage, Third, independent contractors usually bring their own tools and equipment to the job. Fourth, independent contractors may work at their own premises. Finally, relationships with independent contractors cannot generally be terminated without breaching a contract. League resources: · Insurance and Liability Considerations g/hen Hiring Contractors (pdt') www.lmnc.org/pdfs/Conins.pdf 18 -2975- League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities What Alternative Delivery Strategies are Right for Your City Issues to consider There are several important issues to consider regarding altemative service delivery methods. Impact on mission · Is this a core service over which government should maintain strong control? If so, c an it best be done with public employees or through'a contract or cooperative service arrangement? · What community values are at stake in this decision? Are there ethical concerns? Cities may provide certain services or programs that are seen as integral to community life and as part of the community's identity. Some services may also be ones over which city officials want to maintain strong control in order to ensure quality and meet citizens' expectations. Cities may view .these services as core to their mission of contributing to qualitY of life and any change in the way they are provided may contradict that mission. Officials will have to weigh these concerns carefully when considering the various issues related to alternative delivery strategies. It will be important to examine these concerns given the possible benefits and costs of contracting out or cooperating with another local government: Impacts on citizens and quality of life · What is the cost to citizens of changing the way a service is provided? · What are citizens' preferences for the service? Resistance to change and preference for keeping services local are common barriers to cooperative service delivery. It is not safe to assume that citizens will view themselves as better served by a cooperative arrangement or service contract. Response time for police and fire emergencies if departments are consolidated are often of particular concern. Local government is part of the system in which citizens debate, eh:o0Se, and explore collective goods. In other wdrds, through local government, citizens learn about, make decisions on, and debate one another about things that will affect everyone in the community. It is important to examine how changing service provision will impact this system of interaction. · How will .an alternative delivery method impact the quality of the service? Clearly defining the service is important to maintaining quality. Cities may need to establish monitoring procedures and clearly establish accountability for the quality of the service. Cities will need to determine whether administrative staff has the skills to adequately oversee contracts and joint powers agreements. · How much fle:~ibility will the local government ha~e to respond to Changing citizen needs and expectations without bearing undue extra expense? After a city enters into a service contract or cooperative: agreement with another local government, circumstances may change such Rat the. city's citizens' needs for the service are different. When considering alternative Service deli(eel:y, city officials, should inquire as to how flexible the arrangement would be and what the process would be for revising some of the details regarding the service. -2976- 19 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities For example, if after contracting for police services from another city or the county a city realizes that its citizens would be better served by having additional patrols, would that be possible and how much additional expense would it involve? Impact on costs · Will there bc cost savings? · How can the city council monitor the costs and quality of the service? · Are all costs, including internal administrative costs of monitoring and oversight, being taken into account in cost comparisons between different delivery methods? Often, cooperative agreements allow local units to share equipment and facilities or even personnel. While cooperative agreements can reduce costs and avoid duplication of'resources and services, it is not safe to assume they will do so in every case. Under a service contract, the full cost of providing a given service to another local government may or may not be covered by the payment received. While these kinds of arrangements may in fact bring about cost savings in the long nm, there may be initial one-time costs at the outset. Some important new costs to consider would be the stafftime to monitor the cooperative arrangement for quality. Staffmight need training in contract management or other skills to allow them to adequately evaluate the collaboration or service contract. Another important issue to consider is whether or not there would be significant start-up costs if the city found it necessary to provide the service on its own again. New equipment, training of staff, and hiring new staff could be some of the costs of such a decision. Availability of other local participants · Are there other local governments nearby that akeady know how to Perform this function well? Other local units may akeady have specialized equipment or facilities that are required for providing the service in question. Nearby cities' staff may have received training akeady in certain areas or may have initiated innovative ways of delivering some service. Impact on city staff · How will the workloads of current city employees change? · Can human resources be restructured effectively? If city employees' job functions change considerably once a service is being delivered cooperatively or contracted out to another local unit, employees may need to be reassigned to other duties. Impact on role of government · How does this servic~ delivery decision impact the civic and community building capacity of the city government? ~ · Can service delivery decisions be used to accomplish other city goals, such as economic development or building better relationships with other governments? An important consideration is what impacts th~ alternative method may have on other goals and objectives the city has. Each alternatiVe service arrangement may als0 provide an avenue for building relationships with neighboring local"governments that would become the foundation for additional cooperative arrangements in the future. 20 -2977- League of Minnesota Cities Resouxce Guide for Dealing with Budget Cuts.' S~tegics for Cities Barriers and constraints · What barriers and constraints to pursuing altemative delivery methods may exist?' In general, it is important to keep in mind that forming these kinds of cooperative agreements is not a simple process. Geographic distance between local units of government may prove a serious obstacle to cooperative arrangements. Contiguous local units, therefore, may have more success pursuing cooperative agreements for service delivery. Political barriers to cooperation may also exist. Privatization: Issues to consider In addition to the key questions above, there are several important issues to consider particularly when contemplating contracting out to a private organization. · Is the function similar to one already provided by the private sector? How available are private vendors to provide the given service? Is there true competition in the marketplace? The theory behind privatization is that competition in the marketplace leads to better quality product and better prices. When considering contracting out to a private firm, city officials need to determine whether or not the finn has competitors sUch that its product is of good quality and priced well. It may be that a private firm has a monopoly in the market for a given service, in which case the city may not see cost-savings from opting to contract with that firm. · In the long term, can public employees learn the skills to be able to provide this serVice in- house? · Can employees participate in the learning even if the service is contracted out? In some cases ofprivatization, the city and the private firm share responsibi~ty fo~ delivering a service. A simple example is snowplowing; the city may plow some routes.but contract other routes out to a private firm. It may be worth examining whether city emi~ioyees will be able to gain the skills necessary to deliver the service in-house if the city were to decide to end its contract with the private firm. · If the private vendor goes out of business, what options will the city have? Will there be significant interruptions to service? · If the vendor is lost or the quality is unsatisfactory, what would be the costs to the city of reverting to providing the service in-house? What would the transition time be? If competition in the marketplace becomes too severe or a firm's suppliers leave the area or cease operations, a finn may be unable to continue its contract with the city. In that situation, how long citizens would be unable to depend upon that service is an important issue. Also, if after contracting out to a private firm, the city decides to renew its in-house provision of a service, it is important to consider what costs would be involved. There could be significant training and equipment costs associated with such a shift. -2978- 21 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities · HOW can the city ensure that the interests of citizens do not become secondary to those of private firms with whom the city does business? · HOW can the city ensure that friendships and relationships do not get in the way of making good decisions for the city? It is important to consider the motivations of private firms to make a profit and/or perform well for their investors. These goals might conflict with providing the quality services that cities are expecting to receive for their citizens. Citizens will continue to expect that their concerns and views are important. Using volunteers Another strategy that cities may pursue to deal with budget cutbacks is to encourage volunteerism and to work with established volunteer organizations in their communities. Volunteers may be able to perform some city functions at little Or no cost to the city. There may be cost savings and/or improvements to quality. In Bumsville, for example, volunteers do office work for the police department, allowing officers to spend more of their shifts on patrol. In Moorhead, uniformed volunteers drive two retired police cars and issue parking tickets. Using volunteers may allow the city to access expertise in specific areas that the community has to offer and can build community spirit. The challenges of depending on volunteers can involve recruitment difficulties and opposition from city staff. There may also be some costs associated with using volunteers such as staff time spent monitoring volunteers or assigning volunteers to tasks. Cities should consider their staff capacity to manage volunteers. Certain liability issues may also arise when using volunteers to perform services. The League's Insurance Trust provides information regarding these liability concerns. League resources: · Covering the City's Volunteers (pdf) www.lmne.org/pdfs/vo!art, pdf · Accident CoverageJ~or City Volunteers (pdf) www.lmne.org/pdfS/volace.pdf City examples: Source: LMC City Achievement Award applications. City examples: Public Safety Burnsville (2002) The city developed the Community Emergency Response Team (CERT) to train citizens to be emergency responders. Funding for the training classes comes from grants and donations. City examples: Parks and Recreation Houston (2002 winner) Citizen volunteers in the city of Houston planned and researched the development of a nature center at the city's park. Local Eagle Scouts provided park development, including a footbridge, tree plantings, and birdhouses. The project was funded with a TEA-21 grant, state DNR funds, and donations. The city's debt for the project was just over $110,000. 22 -2979- League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities City examples: General Government Minnetonka (2001 winner) Senior citizens of Minnetonka approached the city to offer help in processing water and sewer bills. Now, Minnetonka seniors process 5,000 bills each month and save the city the cost of staff hours to do this work. City examples: Miscellaneous Barnesville (2002) The city's Youth Board provides activities and opportunities for youth to give back to their community. The city operates the Youth Alive Center with grants and donations. The young people perform community service projects, such as painting the city hall, fire hydrants, the police station and cleaning the city cemetery. LeRoy (1994 winner) Along with the county sheriff's boys ranch and the Furore Farmers of American project, the city's community service personnel led tree-planting throughout the city. Plymouth (2002) The city created a volunteer program to enable volunteers to fulfill assignments throughout city departments. A volunteer coordinator seeks these assignments and matches volunteers based on interests and skills. -2980- 23 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategi.~s for Cities Consolidation Minnesota cities are granted the authority to consolidate with other cities and/or with tox,'vnships (MS 414.041). Consolidation is one way that local units can try to save administrative costs and reduce duplication. By combining to form a larger unit of government, small jurisdictions can achieve economies of scale for providing services. In order to pursue consolidation, cities must share a common boundary with at least one of the other cities participating. Norwood arxd Young America consolidated as Norwood Young America in 1996 and in 2001; Pleasant Lake, Rockville and Rockville Township consolidated as the city of Rockville. These are two recent examples of consolidations involving more than one city. A recent attempt at consolidatSon of New London and Spicer failed to garner enough votes to pass. In the case of Norwood Young America, the two cities duplicated many services. Each city had its own volunteer fire department, firefighting equipment, ambulance service, and fire station. Within roughly a year of one another, the two cities had each constructed a water tower. Each city had its own clerk and administrator and developed its own comprehensive plan. The referendum on consolidation passed by two-thirds, with many of those opposing the merger fearing a loss of community identity. After the merger, citizens are better served and the delivery of services is much more efficient according to the city administrator*. Taxes for residents of the newly created city stayed level for the first five years following merger~ In the 2001 merger of Pleasant Lake, Rockville, and Rockville Township, there Was broad support for consolidation as the three local units faced a dramatic increase in development. The one major concern during the merger process was that the rural areas would become over- developed and residents would lose their sense of living in a rural environment:-When the three entities merged, new zoning ordinances were established to address that concern so that the new city could maintain a focus on planned growth. The township had had no regular office hours and the city of Rockville only had two part-time staff members. Following the merger, the city administrator/clerk describes that people are better' served because there is a full-time " administrator, a maintenance staff, and a finance director, among other City staff**. Now, the consolidated city contracts with the county for police services, provides its own fire and snowplowing services, and hires part-time recreation staff. Since the consolidation was relatively recent, residents are still learning about the differences between running a city and running a township. Concerns about the future of the rural areas as well as representation of the rural areas remain among citizens. Concerns about changes in tax burdens will likely be at the forefi:ont of any consolidation discussi°n. If the local units consideringconsolidation have very different service levels or tax bases, taxpayers may face sigrfificant changes in their local tax burden. The statutes governing consolidation allow for a gradual increase in the levy of a city receiving significantly fewer services before consolidation. The gradual increase can take up to six years. The new name of the consolidated city is also an important consideration. Usually, the name of the most populous unit is used, unless a resolution is passed that provides a different name. The consolidation of departments and changes to personnel are also areas that demand thorough study. When consolidation means political consolidation as well as service consolidation, residents worry about losing local control of and representation in decisions. -2981 - 25 League of Mirmesota Citie~ Resource Guide for Dealing with Budget Cuts: Strategies for Cities In case studies of the two successful initiatives to consolidate mentioned above, several key elements clearly contributed to the success. In each case, advisory committees were' ~Ormed to analyze what consolidation would mean for city services and citizens were actively involved in the process. There was also a consensus among the involved officials that consolidation was worth pursuing. In the case of Norwood Young America, communication with residents was key. The local newspaper covered each step of the planning process and the work of the advisory committees. Town meetings were held and residents formed a committee to educate voters about the consolidation initiative. In the Pleasant. Lake-Rockville-RockVille Township case, there was a long history of cooperative arrangements among the three local governments. For example, the city of Rockville already provided fire services and the township already provided plowing services to the others. * Conversation with Thomas Simmons, City Administrator'for Norwood Young America, 6/13/03 ** Conversation with Verena Weber, City Administrator/Clerk for Rockville, 6/16/03 League resources: · ttandbookfor Minnesota Cities: Chapter 2, Change of Boundaries, Status, and Name www.lmne.org/library/handbook, efm City examples: Source: LMC City Achievement Award applications. Norwood and Young America (19.96 winner) Following a 1993 study into the benefits and costs of a merger of the two cities, the cities began. planning for such a merger and a 1995 election made it official. Residents served on issues committees that researched how merger would affect services. Newsletters and town meetings were important steps in the process. Outside consultants were sought for auditing, legal, and organizational questions. Rockville, Pleasant Lake & Rockville Township (2002 winner) These three entities had a history of cooperatively providing services and facilities. For example, Rockville provided fire services to the other two and the township plowed roads for the two cities. Each enfity's comprehensive plan included the goals of the other two. Facing a dramatic increase in development in the area, citizens voted to consolidate into one city, Rockville. 26 -2982- League of Minnesota Cities Resource Guide for Dealing w/th Budget Cuts: Strategies for Cities Other Strategies for Efficiency PurchaSing alliances and joint purchasing Local units of government are granted the authority (MS 471.345 subd. I5) to purchase supplies or equipment Without going through the competitive bidding process if they form a joint powers agreement to make purchases through a national municipal association's purchasing allia.uce or cooperative. The purchases under such an agreement must be made from more than one supplier on the basis of competitive bids or quotations. A city can also solicit bids on behalf of other cities with which it has a joint powers agreement. One city, for example, can solicit bids for the desired supplies and the other city or cities in thc joint powers agreement can purchaSe items from the supplier without having to go through the bidding process. According to the Legislative Auditor's Best Practices ReView in 1999, roughly 100 fire departments, including West Metro (New Hope and Crystal) and Brooklyn Park, are members of the Minnesota Fire Agency purchasing Consortium. Fire departments can purchase fire equipment for lower prices since the Consortium accepts bids for high-volume purchases. Cities can also take advantage of joint purchasing programs established by other units of government to make purchases of Supplies, equipment or materials. The state operates the Cooperative Purchasing Venture (CPV), which allows members that pay an annual fee to make purchases of different supplies under contracts that the state has established through its bidding processes. This kiiid of purChasing arrangement allows cities to avoid the COmpetitive bidding process, which can be burdensome, especially for smaller cities. The membership fee for CPV is set at $500 for thc period from ~luly 1, 2003 to June 30, 2004. Any local unit of government is' eligible for membership in the program. Items commonly purchased through CPV have included vehicles, large tractors and trucks, computers, and office supplies. League resources: · Competitive Bidding Requirements in Cities (pdf) (includes section on application of joint powers in purchasing) www.lnmc.org/pdfs/competitivebiddingrequirementsincities.pdf Other resOurces: Minnesota Cooperative Purchasing Venture: www. mmd. admin.state.mn.us/cpv2.htm City examples: SourceS: Legislative Auditor Best practices; Ramsey County League of Local Governments (KCLLG). Roseville The city Offers combined purchasing services to other eities ~6ugh its IT department. These purchasing services cOVer network, Internet, software, and hardware. The cities of Little Canada, Lauderdale, Arden Hills, ShorevieW, and Mounds VieTM have t~en advantage of these services through contracts with Roseville. -2983- 27 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities St. Cloud The City, Steams County, and the St. Cloud School District jointly purchased software to enable each participant to allow on-line payments on its website. By purchasing the product together, each party was able to save. The local units had a history of working together with technologyw the city and school district's shared file server and the technology solutions for the county-city law enforcement center. Technology applications Cities may also consider various technology applications to increase the efficiency of city services. Technology can potentially speed up government processes and improve the quality of services. Automating services can save significant staff time. Further, if services are available on-line at any time, citizens may be able to more easily access information and services. In a recent example of automating certain processes, a Woodbury police officer has develop ed a computer system to allow officers to enter information from traffic accidents and traffic citations into a computer fight in their vehicles. The technology is predicted to reduce the time officers spend doing paperwork and reduce clerical staff hours. Cost-saving technologies can' include web-based applications and electronic workflow mad document management systems. Since many cities already use computer networks and diverse types of software, collaborative agreements to share specialized equipment and so~,vare, jointly purchase software, and share network and software specialists can be another strategy for reducing costs and improving service. While the cost to one city of certain technologies might be prohibitive, several cities acting together in a coalition may be able to purchase sot~vare and equipment at more reasonable costs. Geographical Information System (GIS) sof~are and e-commerce software are some examples of technologies that may be suitable for group purchase. Cities could also purchase Intemet service together. Outsourcing routine information technology functions is another strategy. Cities can avoid the significant costs of hiring individuals with highly specialized computer skills and iraining or can purchase expensive equipment by contracting with private vendors. As described in the Contracts section above, this may create oversight and contract management costs for the city. In a recent example, Minneapolis outsourced the management of its IT infrastructure to Unisys. The' contract covers roughly 100 servers and 2,700 personal computers. There are a couple of specific technology tools available to Minnesota cities. GovOffice is a tool for cities that the League has developed along with private vendors. It is designed to enable cities to create websites and administer them easily and with flexibility. With GovOffice, cities can post information on city services, provide online forums for citizens to submit information and feedback, and conduct opinion polls online. LOGIS, or Local Government Information Systems, enables cities-to share in the costs of data processing. It is a consortium of cities througl! with members can take advaniage of hardWare and: software purchasing services, consultation and planning ~ervices, and installation and monitoring services. Members are also able to receive web site hosting and high-speed lmternet access. League resources: · GovOffice Web Site Development Tool: www.lmnc.org/services/webforcities.cfm 28 -2984- League of Minnesota Cities Kesource Guide for Dealin§ with Budget Cuts: Strategi~s for Cities Other resources: · University of Mirmesota Extension Service: Access B-Government Curriculum (gUidmce for local governments considering e-government services): www.egov.unnn.edu ' Local Government Information Systems (LOGIS): www.logis.org City examples: Sources: LMC Minnesota Cities magazine; Legislative Auditor Best Practices Reviews; RCLLG; National League of Cities Examples Database. City examples: Public Safety 'Multiple Jurisdiction Network Project (LMC Minnesota Cities magazine, 1996) The cities of Crystal, Mirmeapolis, St. Paul, Maple Grove, Hennepin County, and the Local Government Information Systems consortium formed a committee to find ways' to share police information. They developed a data warehousing system and open connectivity standards that allow them to share access to police data. This eliminated the need for officers to call other jurisdictions to check on records of individuals. City examples: General Government Mantorville In order to save time and increase accuracy, the city purchased a software system that allows it to process utility bills and calculate employee pay, deductions, benefits, and federal reporting. City examples: GIS Cities of Ramsey County Cities in Ramsey County jointly use the data from the county for various projects. Users pay a fee to the County. Winnebago Winnebago and neighboring cities pooled their resources to install a digital land information system. The participating governments can retrieve and share land information more efficiently. The database contains infi:astmcture and demographic information on 21 municipalities and over 85,000 parcels. A Land Records Council was formed to ensure that each city's needs are met by the system. City examples: Miscellaneous Duluth Duluth used software to archive documents and store old records electronically. This freed up significant mounts of storage space and allowed city staff to access files more quickly. Staff could also search the electronic documents by index number, vendor name, account number or keyword. St..Louis Park (LMC Minnesota Cities magazine, 1994) In order to automate the process of collecting recycling participation information, the city's Management Information Systems office used the Geographic Information System (GIS) and bar 29 -2985- League o£ lviinnesota Cities R.esource Guide for Dealing with Budget Cuts: Strategies for Cities code technology. The customer routes for recycling customers were mapped out using GIS and recycling containers were bm' coded so that the collectors could scan them. This eliminated time- consuming work to manually track who had recycled what. The City used the technologic,, to targe~ !ow-participating neibhborhoods with additional information about recycling effo~s. 30 -2986- ~ . '7~ · July 9, 2003 TO: City Manager K. Hanson FROM: CSO Wocken I would like to request that the following information be forwarded to the City Council, for approval of action, for the abatement of a Nuisance, Mound City Ordinance 1000:25. The property needs the following work performed: cut the lawn, tear down the 2 remaining garage walls, clean up all the itmes that sit in and around the garage area, bags of garbage, all over the property, and secure the buildings, so no one can get into the property. The property at 4717 Island View Dr. Mound, MN is owned by a Jan Purcell of Shoreview MN. The property is in violation of ordinances that relate to safety of the public. The Police Department has been working on this property for the past few months, to try to get the owner to clean up the property and make it safe. The owner has made no attempt to improve the property and on many occasions will not return calls to her, by the Community Service Officer. A report, follow up report, pictures, letter, and other paper work are attached for a history of this property issue. If you have any questions please contact CSO Wocken. Thank You, -2987- MOUND POLICE DEPARTMENT CASE NU~ER: '03'0535 INITIA~L COMPIJ~INT REPORT DATE: 03/27/200.q On 02-13-03 CSO Wocken went to 4717 Island View Dr. Mound, Mn to conduct a follow up to a written warning issued on 01-07-03. Wocken noticed that nothing had changed at the property, so Wocken called the property owner, Purcell, Jan Marie~ and explained all the problems at the property. Purcell stated she would take care of the problems. On 02-20-03 Officers Petz and Burke were notified by the City of Mound Public Works Dept. that while they were out to shut off the water at the residence, they noticed the door to the home kicked in. Officers Petz, Burke, Sussman, and Wocken responded to the residence. After the Officers cleared the residence Wocken left a voice message with Purcell's phone to call the Police Dept, and speak to Officer Petz. At this date none of the problems originally on the notice were resolved. On 03-21-03 Wocken met with the Mound Building Inspector at-4~17 Island View to discuss the safety issue of the leaning garaqe~ wall with the electrical meter on it. ~t was decided that f~r safety reasons the condition of the garage could not wait any longer for repair. Wocken called Purcell, and left an urgent message on Purcell's voice mail, to brace the garage wall before it would fall and pull the live electrical wire out and create a serious safety issue, for anyone nearby. On 03-25-03 Wocken went to 4717 Island View to follow up to see if Purcell had braced the garage wall as per instructed, for safety. Upon arrival Wocken noticed that nothing had been done and that the weight of the leaning wall was causing the electrical pole on the garage to bend and pull the top of the meter box up. Due to the safety concern Wocken notified Xcell Energy and had Xcell send out'a technician~to disconnect the ~-~~ici~.~t~the pole.soi~f~he~ garage .wal~i~were.~t~-~all.~,th~re would not be any live wires to cause a concern. At 1600 Hrs. Xcell Energy arrived and disconnected the electric wires to the residence at the pole, and removed the meter, then Wocken and the Xcell technician placed a temporary board up against the wall so it would not fall on anyone. On 03-26-03 Wocken issued Citation #3030608826 to Purcell for failure to respond to the written warning of exterior storage and nuisance. The citation will be mailed to Purcell, since she lives in Shoreview, MN. Wocken clear. Page 1 of 1 -2988- ':I MOUND POLICE DEPARTMENT CASE NUMBER: 03-0535 FOLLOW-UP REPiORT DATE:07/09/2003 On 06-21-03 CSO Wocken returned to 4717 Island View Dr. to see if any progress, on the clean up of the property had taken place. Wocken noticed that noth/ng had been done to improve the property, and that now the grass/weeds had grown so much as to become a violation of the city ordinance. Wocken called Purcell at the~number and left a voice message, stating that the lawn needed to be cut within 10 days or the city would cut the lawn and charge Purcell for the cost of the mowing. On 06-24-03 Wocken sent a letter to Purcell, at the 3145 Park Overlook DR. address, stating that the lawn needed to be cut along with the other violations at the property, such as the leaning garage walls, the bags of garbage that sit throughout the property, all the items that sit in the area that used to be a garage, and the fact that the property cannot be secured due to broken windows and doors. In this letter Wocken noted that all these items/violations need to be corrected within 10 days of the post mark of the letter, or the City of Mound will clean up the property and bill Purcell for all the costs incurred to complete the clean up. This letter was sent certified mail with return receipt. The letter was received on 06-26-03 by a Tyler Purcell. On 07-09-03 Wocken checked the property, to see if the clean up had been complete, but Wocken found that nothing had been done at the property. Wocken will pass this information on to the city manager, so the information can be passed on to the City Council for approval of the clean up, using city resources. Wocken clear. -2989- Page 1 of i June 24, 2003 TO: Jan Purcell 3145 Park Overlook Dr. Shoreview, MN 55126 REGUARDING: The property at 4717 Island View Dr. Mound, MN This letter is to notify you that the property at 4717 Island View Dr. in Mound, needs your immediate attention. The home cannot be secured due to a broken basement door and a broke window. The 2 remaining walls of the garage are not stable or secure. This constitutes a safety concern for everyone close to your property. The yard needs to be cut, there are bags of garbage that are laying all over the back yard as well as sitting in the area that used to be a garage along with windows, suitcases etc.. The garage walls need to be taken down and everything else needs to be removed or stored inside. If after 10 days, of the post marked date, of this notice, everything listed above has not been done to th~...property, the city will take the_. action needed to clean up the.property and will bil~'~ou for~the~ costs~incurred for the clean up. ~ ...... ' ...... ~ ............ If you have any questions please contact Mike Wocken at 952-472- 0621. Thank you, Mike Wocken Community Service Officer -2990- 6~ ~OE2 0~00 022E 660~ -2991 - -2992- -2993- -2994- -2995- -2996- Warning Notice MOUND POLICE 5341 Maywood Road, Mound, MN 55364 Phone 472-0621 q HARRELL af of Police qER/ :UPANT Phone # CODE VIOLATIONS FOUND ON PROPERTY: ) a50:710 EXTERIOR STORAGE 490 GARBAGE CONTAINERS [] 10(X) NUISANCE ~' 330:13On 5,''' H'Ou~Ep..JL~..~ NUMBERS J~ OTHER } Fulure violations shall resu~l in the issuance of a citation. i Please call the inspeclJn§ officer within 48 hours. ~ Failure Io abate ~he indicated violalion(s) by ~/ ./ /'~ / ~ 3 may resul! in Ihe issuance el a dtation. ,'Occupant State of Minnesota-Hennepin County-Fourth Judicial District] City of~~_~ Community Code ~'o~ ~COMPLAiN'll Citation# 3030608826 Drivers License Number , First, Middle Apt # State J~MN [] State Zip Rate Year Date of Offense Parking Meter No. INime of Offense eighborhood Accident Din jury •Property •Fatal i-]Booked J~owner F"lPassenger WlDriver )ffense Location No 1 Offense No 2 Offense ~&tt f Cod, fo r, qr, 3 Offense StatutefOrd 1004 []Speed MS 169.14(subd DEndangering Life/Property l-lHazardous Material (DOT) ~lNo Seat Belt Use MS 16%686 1103 t. State Patrol I Code : ::1. [ State Patro! : 1 Code :t ~State Patrol ): mph in a mph zone U1Unsafe Conditions [-']Commercial Vehicle Identification: F-IDL [] Photo ID [] Other Comments: }Citing Agency Badge(-~ ~/t fi--6v(---) No(s)./ CCN#/ICR# COURT COI'Y DO NOT WRITE ON REVF, RS;E -2997- Orvin D. Burma 3011 Island View Drive Mound, MN 55364 (952) 472 3989 July 2, 2003 Mayor, Ci~ Manager ~nd Co~lil., .Members C{ty ot Mound" ~: .... ~;, ,.~ ha~ r~eme~the ~vtsed statement of next y~'s levies for ~e LMm. I a~ende~..vol~ ~co~iaee meeting on the budget for my own edmati~ as welt ag offering inpm.' Wh~ the initial budg~ was proposed, t felt that :.~¢ ~ a~o~i~~ r~¢vies were kept below the maximum prescribed by law, demonstrating concern for and empathy with the member cities as they stmggte with their budgets. You will note in the minutes of the June 26t~ meeting of the LIvICD that a motion was made to accept the previously proposed budget. Subsequently, an amendment to thai motion was proposed to reduce the levy by a composite of $8,000 with the stipulation that this amount was to be taken from the reserves, t voted against that amendment. The amendment passed on a 6-5 vote, I then voted for the approval of the lew w/th the amendment. - I wou}d like to offer explanation of my reasons for my vote. First, t feet that, by increasing the levies by a composite of slightly over $7,000 the Board had exhibited fiscal responsibility. Secondly, t felt that the benefit to the member communities that would be realized by.. the relatively small amount of reduction (in our case, i believe it was about $400) would be far outweighed by the negative impact of taking monies out of the LMCD reserves, which are already welt below the level recommended by the auditing firm. Th/s action, quite probably will result in a larger increase in the next few years, when the cities may or may not be in a position to better deal '~th it. When the amendment passed, t voted for the amended budget, feeling that there was little or no chance to revise the budget back to a more rational fom~. t hope that m~ reasoning process was in tune with what your thoughts would have been, faced with the same scenario. Having received no' input from anyone regarding the budget, I assumed that you had agreed with the first proposed budget. Although I was flying blind as to your thoughts, I hope t represented the wishes of the city. Sincerely, Orv Burma -2998- CITY OF MOUND BUDGET EXPENDITURES REPORT June 2003 50.00% June 2003 YTD PERCENT BUDGET EXPENSE EXPENSE VARIANCE EXPENDED GENERAL FUND Council 75,990 2,773 37,189 38,801 48.94% Promotions 3,750 0 3,750 0 100.00% City Manager/Clerk 257,150 19,880 120,992 136,158 47.05% Elections 1,080 326. 326 754 30.19% Finance 215,100 16,291 102,916 112,184 47.85% Assessing 79,630 13 128 79,502 0.16% Legal 135,550 14,428 59,280 76,270 43.73% City Hall Building & Srvcs 172,650 11,871 112,838 59,812 65.36% Computer 28,640 0 10,409 18,231 36.34% Police 1,260,850 78,725 575,965 684,885 45.68% Emergency Prepardeness 7,130 616 1,447 5,683 20.29% Planning/Inspections 270,010 32,340 172,557 97,453 63.91% Streets 671,450 14,179 215,230 456,220 32.05% Parks 361,130 22,032 117,917 243,213 32.65% Transfers 203,350 16,946 101,675 101,675 50.00% Cable TV 50,000 0 10,977 39,023 21.95% Contingencies 44,290 508 2,189 42.101 .4.94% GENERAL FUND TOTAL 3,837,750 ~ 1,645,785 2,191,965 42.88% Area Fire Service Fund 510,410 (14,355) 309,961 200,449 60.73% Cemetery FUnd 9,140 0 1,778 7,362 19.45% Dock Fund 141,230 2,811 27,247 113,983 19.29% TIF 1-2 0 15,423 84,192 (84,192) Water Fund 679,880 48,907 268,405 411,475 39.48% Sewer Fund 1,121,210 91,316 559,548 .561,662 49.91% Liquor Fund 495,850 34,274 235,493 260,357 47.49% Recycling Fund 163,310 16,406 79,450 83,860 48.65% Storm Water Utility 92,910 23,740 51,005 41,905 54.90% Exp-02 -2999- 07/1512003 Gino CITY OF MOUND BUDGET REVENUE REPORT June 2003 50.00% GENERAL FUND Taxes Business Licenses Non-Business Licenses and Permits Intergovernmental Charges for Services Court Fines Other Revenue Street Lighting Fee Charges to Other Departments June 2003 YTD PERCENT R V__RE_¥_~_~ REVENUE VARIANCE RECEIVED 2,290,070 939,400 939,400 (1,350,670) 41.02% 6,930 3,780 7,390 460 106.64% 263,150 29,280 133,999 (129,151 ) 50.92% 502,930 0 67,631 (435,299) 13.45% 97,800 15,886 73,229 (24,571) 74.88% 117,000 14,469 52,251 (64,749) 44.66% 215,290 166 96,183 (119,107) 44.68% 0 8,481 8,481 8,481 14.000 1,703 5,476 (8.524) 39.11% TOTAL REVENUE 3.507.170 1.013.165 1.384.040 (2.123.130) .39.46% FIRE FUND CEMETERY FUND DOCK FUND WATER FUND SEWER FUND LIQUOR FUND RECYCLING FUND STORM WATER UTILITY 550,41 0 53,605 309,064 (241,346) 56.15% 5,000 60 2,170 (2,830) 43.40% 103,400 2,196 115,265 11,865 111.47% 625,000 49,155 222,765 (402,235) 35.64% 1,100,000 93,631 508,159 (591,841) 46.20% 2,110,000 204,879 963,433 (1,146,567) 45.66% 129,000 8,647 52,427 (76,573) 40.64% 115,000 8,225 53,438 (61,562) 46.47% 07/1512003 rev01 Gino -3000- General Fund $1,665,088 CDBG 1,289 Area Fire Protection Services 196,471 Grant Revolving 0 Cemetery (4,455) Dock 222,807 PW Facility 72,234 G.O. Improvement Bonds 50,47O Commerce Place TIF (177,511) TIF 1-2 Notes 43,039 G.O. Bonds 200t - A 3,793 G.O. Bonds 2001-C HRA Lease Rev Bonds (1,900) Capital Improvement 1,227,877 MSA (25,380) Sealcoat 67,259 CDB (260) Downtown TIF 1-2 (2,130,686) HRA Public Safety Bldg Water 1,037,325 Sewer 1,109,130 Liquor Store (16,354) Recycling 33,465 Storm Water 309,629 Fire Relief (46,808) HRA 0 Note: The above schedule shows the combined cash and investment balances by fund for the months indicated as recorded in the General Ledger. The balances do not reflect receivable, payables, authorized transferS, encumbered funds, or dedicated/reserved resources, etc. Only some accrued transactions are reflected. Investment income will be distributed to the funds at the end of the year and is not included. A long and complete process is followed to record all transactions, before we close the books, at the end of the year. In addition, the audit from the independent auditor is performed and an official Comprehensive Report will be presented to the City Council and made available to interested parties. In no way this schedule is intended to represent balances of funds available for spending. 07/15~2003 CashReportCouncil Gino -3001 - -3002- Metropolitan Council Building communities that work July 8, 2003 Dear Local Government Official: This letter is to inform local units of government that the Metropolitan Council is seeking applicants to fill nine positions on the Metropolitan Parks and Open Space Commission (MPOSC)--the chair, who serves at-large, and 8 citizen members representing geographic districts across the seven-county metropolitan area. A copy of the news release for these vacancies as well as a map of the districts can be found on the Council's website at: http ://www.metrocouncil.org/news/news 392.hm~. The Metropolitan Council invites local units of government to participate in this appointment process by encouraging citizens who have an interest in the work of the IvlPOSC to become applicants as well as by providing us with any recommendations you may have. Qualifications for membership include: applicant must be a resident of the commission district for which they are seeking appointment, and shall not during their term hold the office of Metropolitan Council member, be a member of the Metropolitan Airports Commission or Sports Facilities Commission, or hold any judicial office. MPOSC appointments are governed under the Minnesota Open Appointments process administered by the Secretary of State. Interested individuals should contact the Secretary of State's office at 651/297-5845 for an application or visit their website at www.sos.state.mn.us. Completed applications are to be returned to the Secretary of State no later than July 22, 2003. After receipt by the Secretary of State, applications will be forwarded to the Metropolitan Council. Applicants will then be invited to appear for an interview at a public meeting conducted by a Metropolitan Council appointments committee. Legislators in the affected district will also be notified of the names and backgrounds of the applicants and their recommendations will be sought. Following the public meeting, the appointments committee will review the information received and make appointment recommendations. It is expected that these appointments will be made by the Metropolitan Council in September. If you have any questions about this appointment process, please call Julie Opsahl of the Council staff at 651/602-1630. Metropolitan Council cc: Administrator/Clerk www.metrocouncll.org Metro Info Line 602-1888 230 East Fifth Street St. Paul. Minnesota55101-1626 · (6511602-1000 * -3003- Fax602-1550 · TRY291-0904 Mound Public Sat~ty Facility 711/03 Mound, MN Funding Source Lease Revenue bond Sale Project Funds HRA Contingency Balance Budget - Contingency Allocation Construction Contingency - HRA Interest Earned Expenditures Proleet Deveioomant Costs A/E Base Fee /VE Reimbursables Scope Change Contingency Land Costs Legal Fees/Non Bond Financing Costs/Non Bond Soft Cost - Miscellaneous to date City Road & Utility Fees (SAC) Public Utility charges Geot echnical/E nvironmental Services Surveying Bid Advertisement and Printing Lease Cost of Temporap/Facility Moving Costs (two moves) Construction Testing Fumtahlnaa and Eauloment FFE Audio visual Systems Security and Access Systems/CCTV Telephone System Computer Network Paging System Cable TV Voics/Data Cabling Conat~uctton Co~t Building Hard Costs General Conditions (Estimated) Contractors - Let Contractors - To Be Let (Estimated) Change Orders - Approved Change Orders - Pending Owner Direct Purchase Asbestos Removal Construction Manager Fee Site Improvements Demolition of Existing Removal of Well New (replacement well) Contingency - Construction Recommended Altematee Proposed Cost Savings Uncommitted Funds Total SEH SEH SEH City of Mound Kennedy/Graven Miscellaneous MCES Braun MFRA To be Bid In Construction Cost Sub-totals To be bid To be bid To be bid To be bid To be bid To be bid To be bid Sub-toteie Contractors (to be bid) Amcon CM IncJudad in Building To be bid NOT included in project Altamata #1 Sub-totals ?orate (Fund Shortage) Budget Work Sheet March-03 Recommended Mar 2003 5,350,000 12,478 237,522 250,000 5,8r~,~1 July-03 Budget Meeting July 2003 5,350,000 12,478 237,522 Recommended allocation 250,000 Set aside for construction 5,880,000 I 371,250 30,500 25,000 30,000 2,000 3,000 · 48,832 2,400 50,000 8,300 8,000 30,000 47,880 8,000 0 665,162 385,750 SEH 11,000 SEH 50,000 SEH 766 MFRA Fee to 511/03 2,000 Kennedy Graven 3,000 Ehlers 48,832 City of Mound - Geno 2,400 City 48,670 MFRA/Amcon 9,381 Amcon 8,000 City 30,000 ^mcon 47,880 City 8,000 C~Y 0 Amcon 855,679 85,000 15,000 14,400 17,200 8,700 7,500 2,500 18~500 168,800 85,000 Ck'y 15,000 C~ty 14,400 City 17,200 City 8,700 City 7,500 C~ 2,500 City 181500 City 168,800 4,531,968 128,500 37,200 10,230 0 250,000 106,416 (80,754) 5,003,560 $E~,837,522 121478 ~ Amcon 163,825 4,357,948 78,000 (8,9e4) 42,359 425 4,000 128,5oo Amcon Amcon Max Steininger, 10,230 Stevens Drilling City 250,000 Amcen In Building Hard Costa Bldg. Committee In Building Hard Costs Amcon 5,028,303 $~,852,782 271218 II AMCON -3004- MP$ Goblet coat 07-01.x15 Con~. Cost 06 03 CITY OF MOUND PUBLIC SAFETY FACILITY 7/1/03 CONTINGENCY Total $250,000.00 Change Orders - Approved (6,984) Change Orders - ~d -~¢~; ~ 42,359 Change Orders - General Conditions _.) $0.00 Owner Direct Purchases $425.00 TOTAL $35,800.00 Contingency Balance $214,200.00 AMCON CM -3005- MPS Const cost 07-01.xls Cont. CITY OF MOUND PUBLIC SAFETY FACILITY 7/1/03 GENERAL CONDITIONS Estimated $163,825.00 Pre-Construction (5/02 to 1/03) $9,722.04 Feb. $1,831.50 Mar. $2,995.79 Apr. $6,672.09 May $17,772.74 Jun. $0.00 Jul. $0.00 Audi. $0.00 Sept. $0.00 Oct. $0.00 Nov. $0.00 Dec. $0.00 TOTAL $38,994.16 General Conditions Balance $124,830.84 AMCON CM -3006- MPS Const cost 07-01 .xls Gen. Cond. CITY OF MOUND PUBLIC SAFETY FACILITY 7/1/03 CONTRACTS TO LET C-05 Fencing $60,000.00 C-23 Fluid Applied Coating $18,000.00 TOTAL $78,000.00 AMCON CM -3007- MPS Const cost 07-01 .xls Contracts To Let CITY OF MOUND PUBLIC SAFETY FACILITY 7/1/03 PRINTING Estimated $30,000.00 Pre-Con $25,386.3C Feb. $358.56 Mar. $0.0¢ Apr. $119.83 May $333.32 Jun. Jul. Aug. Sept. Oct. Nov. Dec. TOTAL $26,198.01 Printing Balance $3,801.99 AMCON CM -3008- MPS Const cost 07-01 .xls Printing Contract Summaries Mound Public Safety Facility Contractor Mound Contractor c-01 Max Steininger Slgn®d Insurance Original Change Current Contact Expires Bond Contract Onlera Contract X 1/1104 37,200 215 37,415 C-02 Veit and Company, Inc. x 567,800 (18,254) 549.546 C-03 Nova Frost Inc. x 56,4oo 56,4oo C-04 Northwest Asphalt, Inc x 12/1/03 x 82,900 e2.900 C-05 Re-Bid Fencing C-06 Midwest Landscaping 69,111 69,111 C-07 combined with C-06 C-08 Kelleher Construction, Inc. x 9/30/03 x 466,872 (493} 466,379 C-09 Hanson Spancrete Midwest, Inc. x 10/1/03 x 723,334 (38,886) 686,448 C-10 Axel H. Ohman, Inc. x 1/1/04 160,000 1~0,000 C-11 Thurnbeck Steel Fabrication, Inc. x x 109.054 5,420 113,474 C-12 Western Steel Erection, Inc, x 1/13/04 77,969 6,630 84,599 C-13 Kellington Construction, Inc. x 5/1/03 x 93,250 4,200 97.450 C-14 Dalco Roofing & Sheet Metal, Inc. x 139,775 21,750 161,525 C-15 Specialty Systems 8/1/03 X t16,083 116,083 C-15A Twin City Roofing 31,500 31,500 C-16 Straughan Hardware, Inc. x 6/30/03 47.233 3.082 50,315 C-17 Twin City Garage Door Company x 12/31/03 68,860 68,860 C-18 Empirehouse, Inc. x 8/1/03 x 123,268 123.268 C-19 Minuti-Ogle Co., Inc x 99,200 99,200 C-20 Ceilings & Floors, Inc. x 5/1/04 53,313 53,313 C-21 Combined with C-20 C-22 Royal Floor Covering Co., Inc. x x 67,932 67,932 C-23 Hold C-24 Steinbrecher Painting Inc. x 49,800 49,800 C-25 Mid-America Business Systems x 9,294 9,294 C-26 Hold C-27A Bartley Sales 4o5 405 C-27B Construction Supply, Inc. 14,o48 14,o48 C-27C TBD C-27D BMSI 5/46/o4 28,916 3,631 32,547 C-27E combined with C-27D C-27F Combined with C-27D C-27G combined with C-27D C-27H combined with C-27B C-271 combined with C-27B C-27J combined with C-27D C-27K combined with C-27B C-27L combined with C-27B C-28 St. Cloud Restaurant Supply x 1/29/o4 15,995 15,995 C-29 Wilke Sanderson 29,646 29,646 C-30 Offisource, Inc. x 3,240 3,240 C-31 Schindler Elevator Corporation 40,900 40,900 C-32 Allied Mechanical Systems of Hutchinson, Inc. x 9/1/03 x 613,650 3,721 617,371 C-33 Ridgedale Electric, Inc. x 11/1103 x 362,000 382,000 4,357,948 (6,984) 4,350,964 AMCON Printed On: 711/2003 -3009- -3010- t..- o o Z 0 0 -3011 - -3012- MOUND PUBLIC SAFETY FACILITY PROJECT TEAM MEETING Tuesday, July 01, 2003 8:30 a.m. AGENDA Project Update a. Schedule Tracking b. Budget Issues c. Building Contracts 2. Technology and Low Voltage a. Telephone System b. Computers, Network, etc. c. Low Voltage Wiring Contract d. CCTV, PA System, Security, etc. 3. Furniture Update Building Design Issues a. Police Dept. Modifications b. HazMat Showers - F.D. c. Commercial Dishwasher d. Other - 5. Miscellaneous a. Eischens Property Tree? b. Next Meeting Date 6. Adjourn -3013- Date 7/1/2003 7/2/2003 7/3/2003 7/4/2003 7/5/2003 7/6/2003 7/7/2003 7/8/2003 7/9/2003 7/10/2003 7/11/2003 7/12/2003 7/13/2003 7/14/2003 7/15/2003 7/16/2003 7/17/2003 7/18/2003 7/19/2003 7/20/2003 7/21/2003 7/22/2003 7/23/2003 7/24/2003 7/25/2003 7/26/2003 7/27/2003 7/28/2003 7/29/2003 7/30/2003 7/31/2003 Totals Weather sunny SUNNY sunny CLOUDY cloudy rain RAIN sunny RAIN sunny HarborWine &Spirits July 2003 CusL # 2002 6848.05 9606.69 23240.93 404 5969.18 495 5610.23 947 17914.72 689 7847.55 11196.66 346 332 4299.6 347 4781.55 353 3459.28 585 5331.42 752 10875.63 13628.22 4459.23 4369.41 4886.21 5014.04 10993.04 11175.89 4385.63 5428.39 4175.25 4896.49 11783.96 11103.91 4624.41 5076.4 5563.17 14382.23 4648.54 5034.91 5768.24 5698.33 10799.62 15455.99 101483.5 188849.5 Difference +1- 878.87 3996.46 5326.21 0 6534.68 -11196.66 4648.54 735.31 986.69 2239.05 5468.2 4580.36 -13628.22 0 -4459.23 -4369.41 -4886.21 -5014.04 -10993.04 -11175.89 0 -4385.63 -5428.39 -4175.25 -4896.49 -11783.96 -11103.91 0 -4624.41 -5076.4 -5563.17 -87365.94 -3014- Metropolitan Council Building communities that work Ju!y 3, 2003 Ms. Kandis Hanson City Manager City Of Mound 5341 Maywood Rd Mound, MN 55364-1687 Dear Ms. Hanson: The Metropolitan Council's preliminary estimates of population and numbers of households, as of April 1, 2002, are listed below for your community. These estimates are based on Census 2000 data and the housing construction information you provide us for your community. No reply to this letter is necessary. If, however, you have comments regarding the estimates please submit them to me in writing by July 11, 2003. The estimates are used in the Department of Revenue's local aid formulas and by the Minnesota Department of Transportation (MNDOT) for calculating local street aids. The Department of Revenue must certify final estimates for these uses by August 1, 2003. Sincerely, Kathy Johnson Community Development Metropolitan Council Population 9,470 2002 Estimate Households 3,995 Persons Per Household 2.36 www.metrocouncil.org Metro Info Line 602-1888 230 East Fifth Sireet * St. Paul, Minnesota 5510'-~.~OU1 ~ (651) 602-1000 · Fax 602-1550 · TTY 291-0904 An Eq - .. '"' -j Employer -3016- -3017- -3018- H A RTER E D 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337-9300 telephone (612) 337-931o fax http://www, kennedy-§raven.com JOH~ B. D£~ Attorney at Law Direct Dial (612) 33'/-9207 Email: j dean~_,kermedy-graven.¢om July 11, 2003 Doug R, Berdie, Ph.D. 5028 EnChanted Road Mound, MN 55364 Re: 2003 Street Reconstruction. Dear Mr. Berdie: My firm serves as the city attorney for Mound. Mayor Pat Meisel has asked me to respond to your letter to her dated July 3, 2003. The primary objective of your letter, as I understand it, was to remind the Mayor of your concem for the health of your arborvitae hedge, and to seek personal assurance from the Mayor that Your "arborvitae will be as healthy at the end of the road project as they are today." The Mayor referred the letter to me because of the potential legal consequences that such an assurance might have for the city. After reviewing the matter, and discussing the circumstances of the project with the city engineer, I have informed the Mayor that she should not provide the requested assurance. My advice to the Mayor is based on several factors: JBD-234379vl MU220-2 o The arborvitae hedge is not located on your lot, but rather on the street right-of-way dedicated to the public in the plat of your property. The right-of-way is six feet wide behind the curb, and the hedge is located from three to five feet behind the curb. Excavation for the replacement curb will extend approximately one foot behind the back of the curb, and will be 12 to 14 inches deep. Excavation will likely have some contact with the roots of the hedges. If the hedge were to suffer damage, it would be the result of lawful and proper city activities within the right-of-way. : As a consequence of those factors, the city would have no liability to you in the event the hedge was damaged or destroyed. It would be improper, in my opinion, for the Mayor, or any other city official, to create a legal obligation to compensate you when none would otherwise exist. -3019- · Doug Berdie July 11, 2003 Page 2 of 2 Although the city is not in a position to provide you with the assurance, you should understand that the city not only is anxious the hedge survive; but also will require that the contractor take reasonable steps to avoid unnecessary damage to the roots. No one benefits when such damage occurs. The city will also notify you when the excavation work will be done on the right-of-way adjacent to your property so that you can, if you wish, be present to observe the work. I hope that this serves as an adequate response to your letter. The Mayor has asked me to assure you that she is sensitive to your concerns, that she knows no one benefits when damage results from construction activities, and that she will insist that staff and contractor alike strive to avoid any such damage. Respectfully yo~, JBD:jms cc: P Meisel J Cameron K Hanson JBD-234379vl MU220-2 -3020- -3021 - ~O'd 0~90~/.P tOINnwwuJ u~NO±BNNIW B>ttt'] WO~-t WU6~:OT £00~-9T-60 £0'd ~lOl B -3022- -3023- Mound Police Department Monthly Report June, 2003 -3024- In the month of June, the police department responded to 519 calls for service. There were 51 Part I offenses reported including 10 burglaries, 36 larcenies, and 5 vehicle thefts. There were 100 Part II offenses reported, which included 19 criminal damage to property reports, 6 domestic assaults, 6 simple assaults, and 4 child abuse or neglect investigations. The police department responded to 329 additional events including medical emergencies, accidents, and animal complaints. To date, the police department has handled over 6,000 incidents and contacts. This represents an increase of over a 1,000 calls and a 17% increase from last year. In June, our patrol officers issued 116 citations for incidents including driving after revocation, no insurance, and speeding. In addition, they issued 88 written warning tickets, and 180 verbal warnings. On June 13, 2003 at 04:05 hours, Officer Murray, Schoenherr and Minnetrista Officer Stutelberg responded to a burglary in-progress at the 2100 block of Basswood Ln. While enroute, the officers were informed that two parties were "kicking windows in." Upon arrival, the officers learned the suspects had fled the scene on foot. The suspects were apprehended in the hallway of a nearby apartment complex. The suspects, both juveniles, were charged with felony criminal damage to property, providing false information, and minor consumption. The female juvenile had a blood-alcohol concentration of.24. On June 23, 2003, Officers Petz and Beck were dispatched to the 4900 block of Crestview Ln. on a "drunken problem". Upon arrival, officers found two extremely intoxicated males who were creating a disturbance. One of the parties began fighting with the officers, who had to use Chemical Mace to subdue him. The party was transported to Hennepin County Jail. He had a reported blood-alcohol concentration of.317. In the month of May, Sergeant McKinley, Detective Swenson, and SRO Niccum were actively involved in investigating incidents including, assault, fraud, child protection, narcotics, and a suicide. -3025- Detective Swanson has been aggressively investigating two local residents for a series of burglaries in the Westonka area. This month she served two search warrants, one on a house and the other on an apartment in an effort to gather evidence about the crime. She has recovered some of the evidence and is checking pawnshops for additional property. We believe these suspects are responsible for the majority of our burglaries. Sergeant McKinley traveled to Chisolm, Minnesota to assist their department on the Leanna Warner abduction. My decision to send Sergeant McKinley was based on the fact that the Chisholm police needed and requested help. Secondarily, this tragic event may help us to be better prepare should we encounter an event of this magnitude. CSO Wocken responded to 148 calls for service in the month of June. He put a tremendous amount of time and effort investigating the nuisance property located at 4717 Island View. A copy of his report has already been forwarded to you. He continues to work on code enforcement, animal control, and maintaining our fleet. Our Reserve' Officers donated 278.25 hours in the included operating a reserve squad, riding with an mining. month of June. Their activities officer, prisoner transports, and In July, the unit is taking on an initiative that will greatly assist the police department in enforcing parking and traffic violations. They are canvassing the entire city, street by street, to locate street and enforcement signs that are covered or obstructed by trees and other foliage. The Reserves will prune back the trees and leave the clippings for the Public Works Department. The goal is to have all of the problem signs pruned back by the end of the month. In June, we began distributing "traffic packets" to all drivers involved in property damage accidents. The packets include a golf pencil, three information sheets, and two state accident reports. The purpose of the packets is to stream-line how we respond to property damage accidents. Our officers use to write state accident reports on all property damage and personal injury accidents. It often take 20 to 25 minutes to write a state accident report. If you have two or three accidents on your shift, you spend a good deal of time sitting in the office preparing state reports. Under the new policy, the drivers will use their information sheets in their packets to write down and exchange their information. The drivers will then be responsible for filling out the state accident report provided in the packet and mailing it to the state. To make it even more convenient for the driver, the packet is a 6X9 envelope with a mailing label to the State of Minnesota attached to it. The driver simply needs to place the accident report in the envelope, seal it, place a stamp on it, and place it into the mail. -3026- In June, we completed the first draft of an Administrative Citation Program. The draft has been sent to Sarah Smith for review and we plan to present it to the City Manager in mid- July. In July, all of our officers will attend a 4 hour specialized M-4 training to be certified on our new rifles. In July, we will begin a new policy and procedure for handling check / credit card investigations. These types of investigations are very time consuming and place all of the responsibility for prosecution on the police departmem. We have developed a booklet that we will be distributing to all of our business. The booklet is a step-by-step instruction on how to process NSF and forged checks and credit cards. This procedure redirects the responsibility and accountability of accepting a bad check back to the business owner. The procedure is designed to ease investigator's case loads while still pursuing successful prosecution of these types of case. Respectfully submitted, James E. Kurtz Chief of Police -3027- MODiTD POLICE DEPAR~ENT JUNE 2003 OFFENSES CLEARED EXCEPT- CLEARED BY A~RESTED REPORTED I~NFOUNDED CLEARED ARREST ADULT JUV Homicide Criminal Sexual Conduct Robbery Aggravated Assault Burglary Larceny Vehicle Theft Arson 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10 i 0 1 i 0 36 2 3 4 2 2 5 1 I 0 0 0 0 0 0 0 0 0 TOTAL 51 4 4 5 3 2 Child Abuse/Neglect 4 Forgery/NSF Checks 2 Criminal Damage to Property 19 Weapons 4 Narcotic Laws 1 Liquor Laws 18 DWI 4 Simple Assault 6 Domestic Assault 6 Domestic (No Assault) 9 Harassment 6 Juvenile Status Offenses 9 Public Peace 5 Trespassing 2 All Other Offenses 5 I 2 i i 0 0 0 0 0 0 0 i 2 0 3 2 i 0 0 0 0 0 I 3 0 1 0 17 19 8 0 0 4 4 0 I 2 I 0 1 0 0 5 4 1 0 0 0 0 0 0 2 0 0 0 0 1 8 0 10 0 0 5 3 2 0 1 1 0 1 0 1 4 2 2 TOTA~ 100 5 11 49 36 28 PART II & PART IV Property Daraage Accidents 11 Personal InjUry Accidents ' 5 Fatal Accidents 0 Medicals 40 Animal Complaints 23 Mutual Aid 15 Other General Investigations 235 TOTAL 329 HCCP 9 Inspections 30 TOTAL 519 9 14 54 39 3O -3028- MOD-N-D POLICE DEPAR~EICT CRIME ACTIVITY REPORT JUNE2003 GENERAL ACTIVITY SUMMARY Hazardous Citations Non-Hazardous Citations Hazardous Warnings Non-Hazardous Warnings Verbal Warnings Parking Citations DWI Over .10 Property Damage Accidents Personal Injury Accidents Fatal Accidents Adult Felony Arrests Adult Misdemeanor Arrests Juvenile Felony Arrests Juvenile Misdemeanor Arrests Part I Offenses Part II Offenses Medicals Animal Complaints Ordinance Violations Other Public Contacts THIS YEAR TO LAST YEAR MONTH DATE TO DATE 44 472 348 40 277 179 13 101 16 50 188 110 131 795 481 24 138 153 4 47 30 3 37 23 11 60 69 5 13 26 0 0 0 4 20 19 38 232 152 4 6 9 28 69 71 51 142 149 100 407 366 40 168 146 23 187 198 30 160 118 403 2,578 2',336 TOTAL Assists Follow-uPs. HCCP Mutual Aid Given Mutal Aid Requested 1,046 9 15 6,097 27 59 4,999 2-2.7 86 15 79 27 -3029- MOUND POLICE DEPARTMENT JUNE 2003 DWI More Than .10% BAC Careless/Reckless Driving Driving After Susp. or Rev. Open Bottle Speeding No DL or Expired DL Restriction on DL Improper, Expired or No Plates Stop Arm Violations Stop Sign Violations Failure to Yield Equipment Violations H&R Leaving the Scene No Insurance Illegal or Unsafe Turn Over the Centerline ...... Parking Violations Crosswalk Dog Ordinances Code Enforcement Seat Belt Overweight Vehicles Miscellaneous Tags TOTAL 1 8 1 28 4 0 10 0 1 1 0 0 10 0 0 24 0 0 7 0 10 113 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 3 -3030- MOUND POLICE DEPARTMENT JUNE 2003 Insurance Traffic Equipment Crosswalk Animals Trash/Derelict Autos Seat Belt Trespassing Window Tint Miscellaneous TOTAL WARRANT ARRESTS Felony Misdemeanor Adult 17 13 12 0 1 12 0 0 0 26 81 1 2 3 1 2 0 0 0 0 0 0 1 -3031 - Property Class Class Extension Sub Total: Record Type Bicycle LOSS Type Stolen Stolen Items Dollar Value I $1,313.oo 1 $12o.oo 2 $1,433.0o Clothes/Furs Sub Total: Stolen I $210.00 I $210.00 Consumable Goods SubTotal: Stolen 3 $658.00 3 $658.00 C - Camera Equip Sub Total: Stolen 2 $729.00 2 $729.00 P - Personal Accessories Sub Total: Stolen I $10.00 1 $10.00 Q - Motorcycles Sub Total: Stolen I $1,000.00 1 $1,000.00 Currency, Notes, ETC. SubTotal: Stolen 2 $893.00 2 $893.00 Office Equipment SubTotal: Stolen 2 $145.00 2 $145.00 Y - All Other SubTotal: Stolen 2 $160.00 2 $160.00 X - Equipment/tools SubTotal: Stolen 1 $1,200.00 1 $1,200.00 Licensed to Mound Police Department -3032- Page I of 2 Property Class Class Extension B - Bicycles Sub Total: Record Type Loss Type Stolen Items Dollar Value 7 $4,216.00 7 $4,216.00 S - Sports Equipment Sub Total: Boat Stolen Stolen 5 $3,550.00 I $1,100.00 6 $4,650.00 A - Motor Vehicles SubTotal: Stolen 1 $400.00 1 $400.00 T - Currency, Negotiable bonds Sub Total: Stolen 1 $10.00 1 $10.00 R - Radio/TV/Sound Entertainment CD Audio Sub Total: Stolen Stolen 3 $574.00 1 $270.00 4 $844.OO Tools SubTotal: Stolen 1 $380.O0 1 $380.00 Vehicle Parts/Accessories Sub Total: Stolen 1 $50.00 $50.00 Other SubTotal: Stolen 10 10 $817.00 $817.00 Report Total .... 48 $17,8o5.oo Licensed to Mound Police ~par~ent -3033- Page 2 of 2 Offense Summary Report Mound Police Department Date Arrived BETWEEN 05126103 and 06/25/03 and NClC Number--MN0271300 Printed On: Monday, July 07, 2003 1 1 1 1 1 1 1 1 3 8 3 7 2 1 2 1 6 4 3 2 4 1 11 1 3 1 1 13 1 29 4 4 2 MOC MOC Literal Transaction 9002 9012 9016 9017 9020 9022 9038 9040 9100 9200 9210 9220 9240 9300 9301 9311 9312 9313 9314 9316 9430 9440 9450 9561 9564 9566 9567 9568 9700 9730 9731 9732 9735 NO D/L, EXPIRED D/L OPEN BOTTLE FAILURE TO YIELD J-FAILURE TO YIELD CARELESS/RECKLESS EXHIBITION DRIVING MISC CITATIONS/TRAFFIC NO SEATBELT PARKiNG/ALL OTHER DAS/DAR/DAC PLATES/NO-IMPROPER-EXPIRED NO INSURANCE/PROOF OF CHANGE OF DOMICILE LOST ARTICLES/OTHER LOST/MISSING PERSONS FOUND PERSONS FOUND ANIMALS/IMPOUNDS FOUND PROPERTY FOUND VEHICLES/IMPOUNDED IMPOUNDED PLATES PERSONAL INJURY ACCIDENTS H/P, PERSONAL iNJURY ACC." · PROPERTY DAMAGE ACCIDENTS DOG BITE DOG BARKING ANIMAL ENFORCEMENT TICKETS DANGEROUS DOG ANIMAL COMPLAINTS MEDICAL/SU MEDICALS MEDICALS/DX MEDICALS/CI IOD INJURY Licensed to Mound Police Department -3034- Page I of Offense Summary Report Total Mound Police Department and 06/25/03 and NOlO Number --MN0271300 Printed On: MOO L/tom/Transact/on Monday, July 07, 2003 4 9741 4 9750 32 9800 9 9801 12 9802 25 9804 3 9805 5 9812 18 9835 9 9900 9 9904 17 9905 3 9910 ! 9929 8 9930 1 9932 3 9935 2 9944 5 9945 2 9950 1 9952 1 9981 2 9982 7 9991 5 9992 5 9993 5 9994 ! A5352 1 A5353 1 A5355 1 A5356 2 A5502 911 HANG UPS FIRES ALL OTHER/LHqCLASSIFIED DOMESTIC/NO ASSAULT PUBLIC ASSIST NOISE COMPLAINT FIREWORKS COMPLAINT TRESPASS NOTIFICATION LT TRAFFIC COMPLAINTS ALL HCCP CASES OPEN DOOR/ALARMS FALSE ALARM MISC. SERVICES BY OFFICERS HANDGUN CARRY DENIED HANDGUN PURCHASE GRANTED OFP VIO. CRIME CONTROL & LAW ENF CHILD CUSTODY ISSUES UNWANTED GUEST SUSPICIOUS PERSON INFO/INT PUBLIC RISK RELEASES WARRANTS .......... FELONY WARRANT JUVENILE WARRANT J-MISC. VIOLATIONS MUTUAL AID/8100 MUTUAL AID/6500 MUTUAL AID/ALL OTHER ASLT 5-MS-INFLICT BD HRM-HANDS-ASLT-AC ASLT 5-MS-INFL OR ATTMPT HRM-HANDS-ADL STR ASLT 5-MS-INFLICT BD HRM-HANDS-CHLD-ACQ ASLT 5-MS-INFL OR ATTMPT HRM-HANDS-CHLD ST ASLT 5-THRT BODILY HARM-NO WEAP-ADLT-ACQ Licensed to Mound Police Department Page 2 of 5 -3035- Offense Summary Report Total MOC Mound Police Department Date Arrived BETWEEN 05126103 and 06125/03 and NCIC Number =MN0271300 Printed On: MOC Literal Transaction Monday, July 07, 2003 2 I 1 1 2 1 1 1 1 1 2 1 1 1 1 3 1 2 1 1 1 2 l 5 2 7 1 5 2 1 2 AL351 AL352 AL354 AL551 AL552 Bl164 B1264 B3334 B3494 B3764 B3794 B3894 B4990 C0111 C3442 DC500 I2060 J3301 J3T01 JE501 JEF01 DOM ASLT-MS-INFLT BODILY HARM-HANDS-AD-FAM ASLT-DOMESTIC-MS~INFLT BODLY HRM-HNDS-ADLT-AC DOM ASLT-MS-INFLT BODILY HARM-HANDS-CH-FAM DOM ASLT-MS-FEAR BODILY HARM-HANDS-AD-FAM ASLT-DOMESTIC-MS-THRT BODLY-HRM-HNDS-ADLT-ACQ BURG 1-OCC RES FRC-N-UNK WEAP-COM THEFT BURG 1-OCC RES NO FRC-N-UN WEAP-COM THEFT BURG 3-UNOCC RES FRC-D-UNK WEAP-COM THEFT BURG 3-UNOCC RES NO FRC-U-UNK WEAP-COM THEFT BURG 3-UNOCC NRES FRC-N-UNK WEAP-COM THEFT BURG 3-UNOCC NILES FRC-U-UNK WEAP-COM THEFT BURG 3-UNOCC NRES NO FRC-U-UNK WEAP-COM THEFT BURG 4-AT FRC RES-U-UNK WEAP-UNK ACT FORGERY-UNK LVL-MAK ALTER-CHECK-PERSON FORGERY-MS-REPRODUCE-MONEY-BUSINESS DRUGS-DRUG PARAPH-POSSESS-UNK-UNK CRIM AGNST FAM-GM-NEGLECT OF A CHILD ACCIDENT-MS-FAIL STOP-DRVR CAUSED-UNK INJ-MV TRAF-ACC-MS-UND AGE DRINK DRIVE-UNK-MOTOR VEH TRAF-AC-GM-2ND DEG DWI-UI ALCOHOL-MV TRAF-AC-GM-2ND DEG DWI-10 OR MORE WIN 2 HRS-MV JFS01 ...... TR~F:~C~GM:3RD'DEG' DW'I'-Ut-ALCOHOL, MV JFF01 TRAF-AC-GM-3RD DEG DWI-10 OR MORE WIN 2 HRS-MV JGS01 TRAF-ACC-M-4TH DEG DWI-UI ALCOHOL-MV JGF01 TRAF-ACC-M-4TH DEG DWI-10 OR MORE WIN 2 HRS-MV M3001 JUVENILE-ALCOHOL OFFENDER-UNDER 18 YRS M3005 JUVENILE USE OF TOBACCO M4140 LIQUOR-UNDERAGE CONSUMPTION 18-21 M4199 LIQUOR - OTHER M5313 JUVENILE-CURFEW M5350 JUVENILE-RUNAWAY M8199 CRUELTY TO ANIMALS-OTHER N3030 DISTURB PEACE-MS-DISORDERLY CONDUCT Licensed to Mound Police Department Page 3 of 5 -3036- Offense Summary Report Total MOC Mound Police Department Date Arrived ~c._.TWg_EI~ 05126103 and 06125103 and NCIC Number --'MN0271300 Printed On: MOC Literal Transection Monday, July 07, 2003 1 1 6 1 2 1 1 13 1 2 1 1 1 1 1 1 1 1 1 2 1 8 2 5 1 1 1 5 1 4 1 1 N3070 N3130 N3190 N3390 Plll0 P2110 P2130 P3110 P3120 P3310 P3630 Q329o TC059 TC061 TC159 TC169 TQ021 TQ029 TQ0~9 TQ159 TQI69 TR029 TR059 TR099 TR159 TRI69 TR999 U1733 U328D U3493 U349D V0121 VB021 DISTURB PEACE-MS-PUBLIC NUISANCE DISTURB PEACE-MS-EMERGENCY TELEPHONE CALLS DISTURB PEACE-MS-HARRASSING COMMUNICATIONS DISTURB PEAC-MS-VIOL DOM ABUSE NO CONTACT ORD PROP DAMAGE-FE-PRIVATE-UNK INTENT PROP DAMAGE-GM-PRIVATE-UNK INTENT PROP DAMAGE-GM-BUSINESS-UNK INTENT PROP DAMAGE-MS-PRIVATE-UNK INTENT PROP DAMAGE-MS-PUBLIC-UNK INTENT TRESPASS-MS-PRIVATE-UNK INTENT LITTER-UNLAWFUL DEPOSIT OF GARBAGE-COM-BUSINES STLN PROP-MS-POSSESS-OTH PROP-UNK VALUE THEFT-501-2500-FE-YARDS-OTH PROP THEFT-501-2500-FE-MAILS-MONEY THEFT-501-2500-FE-MOTOR VEH-OTH PROP THEFT-501-2500-FE-WATERCRAFT-OTH PROP THEFT-251-500-GM-BUILDING-MONEY THEFT-251-500-GM-BUILDING-OTH PROP THEFT-251-500-GM-YARDS-OTH PROP THEFT-251-500-GM-MOTOR VEH-OTH PROP THEFT-251-500-GM-WATERCRAFT-OTH PROP THEFT-250 OR LESS-MS-BUILDING-OTHER PROP THEFT-LESS 250-MS-YARDS-OTHR PROP THEFT-LESS 250-MS-SELF SRV GAS-OTH PROP THEFT-LESS 250-MS-MOTOR VEH-OTHER THEFT-LESS 250-MS-WATERCRAFT-OTH PROP THEFT-LESS 250-MS-OTHER-OTH PROP THEFT-FE-IDENTITY THEFT-501-2500 THEFT-MS-SHOPLIFTING-250 OR LESS THEFT-MS-BICYCLE-NO MOTOR-501-2500 THEFT-MS-BICYCLE-NO MOTOR-250 OR LESS VEH-UNK VAL-UNK LVL-TEMPORARY THEFT-AUTO VEH-501-2500-FE-THEFT-AUTO Licensed to Mound Police Department Page 4 of 5 -3037- Offense Summary Report Total MOC Mound Police Department Date Arrived BETWEEN 05/26/03 and 06~25~03 and NCIC Number =MN0271300 Printed On: MOC Literal Transaction Monday, July 07, 2003 2 1 4 1 1 GRAND TOTAL: 470 VB029 VN081 W3980 X2200 X3200 VEH-501-2500-FE-THEFT-BOAT-MTRI VEH-250 OR LESS-MS-TAMPER WITH-AUTO WEAPONS-MS-OTHER ACT-FIREWORKS-NO CHAR CRIM AGNST ADM JUST-GM-GIVE FLSE NAM-POL CRIM AGNST ADM JUST-MS-GIVE FLSE NAM POL Licensed to Mound Police Department Page 5 of 5 -3038- Citation Summary Offense Report Total Offense ~.Mound Police Department 'Date Cited BETWEEN 05/26/03 and 06/25103 and NClC Number =MN0271300 Printed On: Offense Literal Transaction 28 9000 SPEEDING Wednesday, July 09, 2003 1 9001 J-SPEEDING 3 9002 NO D/L, EXPIRED D/L I 9014 STOP SIGN 1 9027 J-OVER THE CENTER LINE I 9038 MISC CITATIONS/TRAFFIC 6 9040 NO SEATBELT 13 9100 PARKING/ALL OTHER 8 9150 NO TRAILER PARKING 7 9210 PLATES/NO-IMPROPER-EXPIRED 3 9220 NO INSURANCE/PROOF OF 3 9240 CHANGE OF DOMICILE 1 9990 MISC. VIOLATIONS TOTAL: 76 Licensed to Mound Police Department Page I of I -3039- Case Status Report MOC Total Founded Mound Police Department Date Assigned BETWEEN 05126103 and 06125103 and Otc Offense Code >=A0000 and NClC Number --MN0271300 Printed On: Wednesday, July 02, 2003 Except- Cleared Pending/ Total Ref. To Oth, Cleared Arrest Inactive Cleared Agen GOA Assisted /UTL /Advised Other A5352 Total 1 percent A5353 Total 1 percent A5355 Total 1 percent A5356 Total 1 percent A5502 Total 2 percent AL351 Total 2 percent AL352 Total 2 percent AL354 Total 1 ASLT 5-MS-INFLICT BD HRM-HANDS-ASLT-AC 0 I 0 0 1 0.00 100.00 0.00 0.00 100.00 ASLT 5-MS-INFL OR A~FMPT HRM-HANDS-ADL STR 0 0 0 1 0 0.00 0.00 0.00 100.00 0.00 ASLT 5-MS-INFLICT BD HRM-HANDS-CHLD-ACQ 0 0 1 0 1 0.00 0.00 100.00 0.00 100.00 ASLT 5-MS-INFL OR ATTMPT HRM-HAHDS-CHLD ST 0 0 0 1 0 0.00 0.00 0.00 100.00 0.00 ASLT 5-THRT BODILY HARM-NO WEAP-ADLT-ACQ 0 0 0 0 0.00 0.00 0.00 0.00 0 0 0 0 0.00 0.00 0.00 0.00 0 0 0 0 0.00 0.00 0.00 0.00 0 0 0 0 0.00 0.00 0.00 0.00 1 I 0 0 1 0 50.00 50.00 0.00 0.00 50.00 0.00 DOM ASLT-MS-INFLT BODILY HARM-HANDS-AD-FAM 0 0 2 0 2 0 0.00 0.00 100.00 0.00 100.00 0.00 ASLT-DOMESTIC-MS-INFLT BODLY HRM-HNDS-ADLT-AC 0 0 2 0 2 0 0.00 0.00 100.00 0.00 100.00 0.00 DOM ASLT-MS-INFLT BODILY HARM-HANDS-CH-FAM 0 0 1 0 1 0 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 percent AL551 Total 1 percent AL552 Total 1 percent Bl164 Total 2 percent B1264 Total 1 percent B3334 o.oo 0.oO loo. DOM ASLT-MS-FEAR BODILY HARM-HANDS-AD-FAM 0 0 1 0 1 0 0.00 0.00 100.00 0.00 100.00 0.00 ASLT-DOMESTIC-MS-THRT BODLY-HRM-HNDS-ADLT-ACQ 0 0 0 0.00 0.00 0.00 0 0 o.oo ]oo.oo 0.o6 ........ ' 0.o0 ..... 0 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 I 0 0 0.00 0.00 0.00 100.00 0.00 0.00 BURG 1-OCC RES FRC-N-UNK WEAP-COM THEFT 0 0 I I I 0 0.00 0.00 50.00 50.00 50.00 0.00 BURG 1-OCC RES NO FRC-N-UN WEAP-COM THEFT 0 0 0 1 0 0 0.00 0.00 0.00 100.00 0.00 0.00 BURG 3-UNOCC RES FRC-D-UNK WEAP-COM THEFT 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 Licensed to Mound Police Department Page 1 of 6 -3040- Case Status Report Mound Police Department Date Assigned BETWEEN 0512~/03 and 06125103 and Dfc Offense Code >--A0000 and NClC Number -'MN0271300 Printed On: Wednesday, July 02, 2003 MDC Total Un- Except- Cleared Pending/ Total Ref. To Oth, Founded Cleared Arrest Inactive Cleared Agen GOA Assisted /UTL /Advised Other Total 1 percent B3494 Total 1 percent B3764 Total 1 percent B3794 Total 1 percent B3894 Total 2 percent B4990 1 oercent C0111 Total 1 ~ercent C3442 Total 1 oercent DC500 Total 1 oercent I2060 Total 3 percent J3301 Total 1 percent J3T01 Total 2 oercent JE501 1 percent 0 0 0 1 0 0 0.00 0.00 0.00 100.00 0.00 0.00 BURG 3-UNOCC RES NO FRC-U-UNK WEAP-COM THEFT 1 0 0 0 0 0 100.00 0.00 0.00 0.00 0.00 0.00 BURG 3-UNOCC NR~S FRC-N-UNK WEAP-COM THEFT 0 0 0 1 0 0 0.00 0.00 0.00 100.00 0.00 0.00 BURG 3-UNOCC NRES FRC-U-UNK WEAP-COM THEFT 0 0 0 1 0 0 0.00 0.00 0.00 100.00 0.00 0.00 BURG 3-U-NOCC NRES NO FRC-U-UNK WEAP-COM THEFT 0 0 0 2 0 0 0.00 0.00 0.00 100.00 0.00 0.00 BURG 4-AT FRC RES-U-UNK WEAP-UNK ACT 0 0 0 1 0 0 0.00 0.00 0.00 100.00 0.00 0.00 FORGERY-UNK LVL-MAK ALTER-CHECK-PERSON 0 0 0 1 0 0 0.00 0.00 0.00 100.00 0.00 0.00 FORGERY-MS-REPRODUCE-MONEY-BUSINESS 0 0 0 I 0 0 0.00 0.00 0.00 100.00 0.00 0.00 DRUGS-DRUG PARAPH~POSSESS-UNK-UNK .... 0 0 1 0 1 0 0.00 0.00 100.00 0.00 100.00 0.00 CRIM AGNST FAM-GM-NEGLECT OF A CHILD 1 1 0 I 1 0 33.33 33.33 0.00 33.33 33.33 0.00 ACCIDENT-MS-FAIL STOP-DRVR CAUSED-UNK INJ-MV 0 0 1 0 1 0 0.00 0.00 100.00 0.00 100.00 0.00 TRAF-ACC-MS-UND AGE DRINK DRIVE-UNK-MOTOR VEH 0 0 2 0 2 0 0.00 0.00 100.00 0.00 100.00 0.00 TRAF-AC-GM-2ND DEG DWI-UI ALCOHOL-MV 0 0 1 0 1 0 0.00 0.00 100.00 0.00 100.00 0.00 Licensed to Mound Police Department 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 Page 2 of 6 -3041 - Case Status Report MOC Total Founded Except- Cleared Mound Police Department Date AsSigned BETWEEN 05126103 and 06/25103 and Ofc Offense Code >=A0000 and NCIC Number --MN0271300 Printed On: Wednesday, July 02, 2003 Cleared Pending/ Total Ref. To Oth. GOA Assisted Arrest Inactive Cleared Agen /UTL /Advised Other JEF01 Total 1 percent JF50I Total 1 percent JFF01 Total l percent JG501 Total 2 percent JGF01 Total 1 percent M3001 Total 5 percent M3005 Total 2 percent M4140 Total 7 percent M4199 Total 1 percent M5313 Total 5 percent M5350 Total 2 percent M8199 Total 1 percent N3030 TRAF-AC-GM-2ND DEG DWI-10 OR MORE WIN 2 HRS-MV 0 0 1 0 1 0 0 0 0 0.00 0.00 100.00 0.00 100.00 0.00 0.00 0.00 0.00 TRAF-AC-GM-3RD DEG DWI-UI ALCOHOL-MV 0 0 1 0 1 0 0 0 0 0.00 0.00 100.00 0.00 100.00 0.00 0.00 0.00 0.00 TRAF-AC-GM-3RD DEG DWI-10 OR MORE WIN 2 HRS-MV 0 0 1 0 1 0 0 0 0 0.00 0.00 100.00 0.00 100.00 0.00 0.00 0.00 0.00 TRAF-ACC-M-4TH DEG DWI-UI ALCOHOL-MV 0 0 2 0 2 0 0 0 0 0.00 0.00 100.00 0.00 100.00 0.00 0.00 0.00 0.00 TRAF-ACC-M-4TH DEG DWI-10 OR MORE WIN 2 HRS-MV 0 0 I 0 1 0 0 0 0 0.00 0.00 100.00 0.00 100.00 0.00 0.00 0.00 0.00 JUVENILE-ALCOHOL OFFENDER-UNDER 18 YRS ! 0 4 0 4 0 0 0 0 20.00 0.00 80.00 0.00 80.00 0.00 0.00 0.00 0.00 JUVENILE USE OF TOBACCO 0 0 2 0 2 0 0 0 0 0.00 0.00 100.00 0.00 100.00 0.00 0.00 0.00 0.00 LIQUOR-UNDERAGE CONSUMPTION 18-21 0 0 7 0 7 0 0 0 0 0.00 0.00 100.00 0.00 ~'i00]00' - 0.00 0.00 0.00 0.00: LIQUOR - OTHER 0 0 I 0 1 0 0 0 0 0.00 0.00 100.00 0.00 100.00 0.00 0.00 0.00 0,00 JUVENILE-CURFEW 0 0 5 0 5 0 0 0 0 0.00 0.00 100.00 0.00 100.00 0.00 0.00 0.00 0.00 JUVENILE-RUNAWAY 0 I I 0 2 0 0 0 0 0.00 50.00 50.00 0.00 100.00 0.00 0.00 0.00 0.00 CRUELTY TO ANIMALS-OTHER 0 1 0 0 1 0 0 0 0 0.00 100.00 0.00 0.00 100.00 0.00 0.00 0.00 0.00 DISTURB PEACE-MS-DISORDERLY CONDUCT Licensed to Mound Police Department Page 3 of 6 -3042- Case Status Report Mound Police Department Date Assigned BETWEEN and 06/25~03 and Ofc Offense Code >=AO000 and NClC Number =MN0271300 Printed On: Wednesday, July 02, 2003 MOC Total Un- Except- Cleared Pending/ Total Ref, To Oth. Founded Cleared Arrest Inactive Cleared Agen GOA Assisted /UTL /Advised Other Total 2 percent N3070 Total 1 ~ercent N3130 Total 1 percent N3190 Total 6 ~ercent N3390 Total 1 oercent PlllO '2 oercent P2110 Total 1 percent P2130 Total 1 percent P3IIO ~ Total 13 percent P3120 Total 1 percent P3310 Total 2 percent P3630 Total 1 percent Q329o 1 percent 0 0 2 0 2 0 0.00 0.00 100.00 0.00 100.00 0.00 DISTURB PEACE-MS-PUBLIC NUISANCE 0 0 1 0 1 0 0.00 0.00 100.00 0.00 100.00 0.00 DISTURB PEACE-MS-EMERGENCY TELEPHONE CALLS 0 0 1 0 1 0 0.00 0.00 100.00 0.00 100.00 0.00 DISTURB PEACE-MS-HARRASSING COMMUNICATIONS 0 2 0 4 2 0 0.00 33.33 0.00 66.67 33.33 0.00 DISTURB PEAC-MS-VIOL DOM ABUSE NO CONTACT ORD 0 0 I 0 I 0 0.00 0.00 100.00 0.00 100.00 0.00 PROP DAMAGE-FE-PRIVATE-UNK INTENT 0 0 1 1 1 0 0.00 0.00 50.00 50.00 50.00 0.00 PROP DAMAGE-GM-PRIVATE-UNK INTENT 0 0 0 I 0 0 0.00 0.00 0.00 100.00 0.00 0.00 PROP DAMAGE-GM-BLTSINESS-UNK INTENT 0 0 0 1 0 0 0.00 0.00 0.00 100.00 0.00 0.00 PROP DAMAGE-MS-PRIVATE-UNK INTENT 0 1 1 11 2 0 0.00 7.69 7.69 84.62 15.38 0.00 PROP DAMAGE-MS-PUBLIC-UNK INTENT 0 0 0 1 0 0 0.00 0.00 0.00 100.00 0.00 0.00 TRESPASS-MS-PRIVATE-UNK INTENT 0 1 1 0 2 0 0.00 50.00 50.00 0.00 100.00 0.00 LITTER-UNLAWFUL DEPOSIT OF GARBAGE-COM-BUSINES 0 0 0 1 0 0 0.00 0.00 0.00 100.00 0.00 0.00 STLN PROP-MS-POSSESS-OTH PROP-UNK VALUE 0 0 1 0 1 0 0.00 0.00 100.00 0.00 100.00 0.00 Licensed to Mound Police Department 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0' 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 Page 4 of -3043- Case Status Report MOC Total Founded TC059 Mound Police Department Date Assigned BETWEEN 05126103 and 06/25103 and Ofc Offense Code >'-A0000 and NCIC Number =MN0271300 Printed On: Wednesday, July 02, 2003 Except- Cleared Pending/ Total Ref. To Otb. Cleared Arrest Inactive Cleared Agen THEFT-501-2500-FE-YARDS-OTH PROP G0A Assisted AJTL /Advised Other Total 1 percent TC061 Total 1 percent TC159 Total 1 percent TQ021 Total I percent TQ029 Total 1 percent TQ059 Total 1 percent TQ]59 Total 2 percent TQ169 Total 1 percent TR029 Total 1 percent TR059 Total 7 percent TR099 Total 2 percent TR159 Total 5 percent TR999 0 0 0 1 0 0 0 0.00 0.00 0.00 100.00 0.00 0.00 0.00 THEFT-501-2500-FE-MAILS-MONEY 0 0 0 1 0 0 0 0.00 0.00 0.00 100.00 0.00 0.00 0.00 THEFT-501-2500-FE-MOTOR VEH-OTH PROP 0 0 0 1 0 0 0 0.00 0.00 0.00 100.00 0.00 0.00 0.00 THEFT-251-500-GM-BUILDING-MONEY 0 0 0 1 0 0 0 0.00 0.00 0.00 100.00 0.00 0.00 0.00 THEFT-25 !-500-GM-BUILDING.OTH PROP 0 1 0 0 I 0 0 0.00 100.00 0.00 0.00 100.00 0.00 0.00 THEFT-251-$00-GM-YARDS-OTH PROP 0 0 0 I 0 0 0 0.00 0.00 0.00 100.00 0.00 0.00 0.00 THEFT-251-500-GM-MOTOR VEH-OTH PROP 0 0 0 2 0 0 0 0.00 0.00 0.00 100.00 0.00 0.00 0.00 THEFT-251-500-GM-WATERCRAFT-OTH PROP 0 0 0 I_ 0 0 0 0.00 0.00 0.00 100.00 0.00 0.00 0.00 THEFT-250 OR LESS-MS-BUILDING-OTHER PROP 0 0 I 0 1 0 0 0.00 0.00 100.00 0.00 100.00 0.00 0.00 THEFT-LESS 250-MS-YARDS-OTHR PROP 0 0 0 7 0 0 0 0.00 0.00 0.00 100.00 0.00 0.00 0.00 THEFT-LESS 250-MS-SELF SRV GAS-OTH PROP 0 1 0 1 1 0 0 0.00 50.00 0.00 50.00 50.00 0.00 0.00 THEFT-LESS 250-MS-MOTOR VEH-OTHER 1 0 0 4 0 0 0 20.00 0.00 0.00 80.00 0.00 0.00 0.00 THEFT-LESS 250-MS-OTHER-OTH PROP 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Licensed to Mound Police Department Page 5 of 6 -3044- Case Status Report MOC Total Founded Total ! 0 Mound Police Department Date Assigned BETWEEN 05126103 and 06/25103 and Oft Offense Code >=A0000 and NCIC Number =MN0271300 Printed On: Wednesday, July 02, 2003 Except- Cleared Pending/ Total Ref. To Oth, Cleared Arrest Inactive Cleared Agen GOA Assisted /UTL /Advised Other 0 0 I 0 0 0 0 0 percent U1733 Total 1 percent U328D Total 5 percent U3493 Total 1 percent U349D Total 4 percent V012I 1 percent VB021 Total 1 percent VB029 Total 2 percent VN081 Total 1 percent W3980 Total 4 percent X2200 Total 1 percent X3200 Total 1 percent 0.00 0.00 0.00 100.00 0.00 THEFT-FE-IDENTITY THEFT-501-2500 1 0 0 0 0 100.00 0.00 0.00 0.00 0.00 THEFT-MS-SHOPLIFTING-250 OR LESS 0 1 3 1 4 0.00 20.00 60.00 20.00 80.00 THEFT-MS-BICYCLE-NO MOTOR-501-2500 0 0 0 1 0 0.00 0.00 0.00 100.00 0.00 THEFT-MS-BICYCLE-NO MOTOR-250 OR LESS 0 0 0 4 0 0.00 0.00 0.00 100.00 0.00 VEH-UNK VAL-UNK LVL-TEMPORARY THEFT-AUTO 0.00 0 0.00 0 0.00 0 0.00 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0 0.00 0.00 0.00 0.00 0 0 0 1 0 0 0.00 0.00 0.00 I00.00 0.00 0.00 VEH-501-2500-FE-THEFT-AUTO 0 1 0 0 1 0 0.00 100.00 0.00 0.00 100.00 0.00 VEH-501-2500-FE-THEFT-BOAT_MTRI 1 0 0 1 0 0 50.00 0.00 0.00 50.00 0.00 0.00 -VEH-250 OR LESS-MS-TAMPER WITH-AUTO 0 0 0 I 0 0 0.00 0,00 0.00 100.00 0.00 0.00 WEAPONS-MS-OTHER ACT-FIREWORKS-NO CHAR 2 1 0 1 I 0 50.00 25.00 0.00 25.00 25.00 0.00 CRIM AGNST ADM JUST-GM-GIVE FLSE NAM-POL 0 0 1 0 I 0 0.00 0.00 100.00 0.00 100.00 0.00 CRIM AGNST ADM JUST-MS-GIVE FLSE NAM POL 0 0 I 0 1 0 0.00 0.00 100.00 0.00 100.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 0 0 0 0.00 0.00 0.00 142 9 14 54 65 68 0 0 0 0 percent 6.34 9.86 38.03 45.77 47.89 0.00 0.00 0.00 0.00 Licensed to Mound Police Department Page 6 of 6 -3045- MI LEANNA IN (BEANER) WARNER Last seen June 14, 2003 In Chisholm, Minnesota Wearing a Dark Blue Denim Dress (sleeveless) Bare Foot 5 years old 3 feet tall 50 pounds Brown Eyes Brown Hair (shoulder length) CALL "911" WITH ANY INFORMATION -3046- Bureau of Criminal Apprehension 301 West Ist Street, Suite 627, Duluth, Minnesota Phone: 218-723-4800, Fax: 218-727-7216 55802 Warner Case Synopsis: Associated Case Numbers Chisholm Police Department: 03-044233 BCA Case # 2003-301 St. Louis County#: 03-004782 Details: On June 14, 2003 at approximately 1700 hours, LEANNA MARIE WARNER, DOB: 01/21/98, left her residence in Chisholm, Minnesota to go to a friends house which was located approximately one block away. WARNER has not been seen since. WARNER was last seen wearing a blue denim dress with attached belt. She had on a pair of Hanes Brand girl's underwear, orange in color. She was not wearing any shoes or socks. WARNER is approximately 3 feet tall, 40 pounds, brown shoulder length hair with one pierced ear.. The earring she had in at the time of her disappearance is in the design of a flower with a red garnet birthstone set in the center. Additional photographs and information on the description of LEANNA MARIE WARNER can be found at www. findbeaner.orq. Any information, you can provide is greatly appreciated. Contact numbers for the WARNER TASK FORCE: Phone#: 218-262-0241 218-262-0242 Fax~: 218-262-6334 -3047- MOUND POLIC'E DEPARTMENT INITIAL CAI.L REPORT Incident/Offense MUTUAL AID CI-HSHOLM POLICE Squad I Time Reported Time Arrived 6440 Place Committed 19 SW 2"d Street Chisholm, Date Repo~ted Case Number 06-27-03 03-1551 ITime Cleared Earliest Date 0 Dt. Rpt Earliest Time 0 Tm. Rpt 06-14-03 1700 Grid NCIC Identifier 90 MN0271300 Name (Last. First Middle) W~ER, Leaana Address City State Zip 19 SW 2nd Street Chisholm MN Place Employed or School Attended Employer Address IHome Phone Cell Phone MOC charging ( ) Missing Name (Last, First Middle) ( X ) Suspect ( ) Arr~d UNKNOWN Date of Birth [ Address I Sears, Marks, Tattoos, Disfigurements City State Zip Home Phone Place of Birth City/State Injuries/Illness Employer & Occupation Crime ? Hours Worked Relative2~arent Telephone Relationship Cell/Business Phone ( ) Missing Name (Last, First Middle) ( ) Suspect ( ) Arrested Date of Birth ] Address I Time of Release 0 To Jail Booking Number Scars, Marks, Tattoos, Disfigurements City State Zip Home Telephone Cell/Business Phone Relative/Parent Place of Bii~h City/State Injuries/Illness Emplayer & Occupation Time Released 0 To Jail Booking Number License Number & State Make & Model Keys in Vehicle ( )Y ( )N Doors Locked ( )Y ( )N Name (Last, Fb'st Middle) Telephone Relationship Year Style Color Identifying Characteristios VIN Number Payments Current ( ) Y ( ) N Insured by Address/City State/Zip Telephone H: H: B: H: B: H: Value $ DOB B: Qty ii!!:i:i!i Description Identifying Numbers Complainant - Signature & Date Disposition Reported by Officer McKINLEY Assisting Officer Officer Assigned -Date Supervisor - Approved Date -3048- MOUND POLICE DEPARTMENT CASE NUMBER: 03- 1551 INITIAL COMPLAINT REPORT I)ATE: 06/30/03 On 6-26-03 the Mound Police Department received a teletype from the St. Louis County Sheriff's Office and the Chisholm Police Department requesting assistance. The teletype stated they were in need of investigators on 6-27, 28 and 29 to work open leads in the case. Chief Kurtz gave McKinley permission to assist during the time indicated. McKinley arrived in Hibbing at the command post on Friday 6-27-03 at approximately 1100 hours. McKinley was briefed on the case and began working on leads. McKinley worked on the following leads. Lead 813 Lead from parole officer Dave Holmbeck 218-262-0230 regarding a non compliant registered sex offender named ]lll/ffi/i~~~ob 07-20-61 LKA 27 l~ll~llDuluth 218-727-9294 LK Employer Mid Continent, Duluth 218-722-1427 Attempted contact with ~ Unable to reach by phone. Contacted Duluth Police Detective Division via phone. Got answering machine-left message. Spoke with Duluth Officer Steve Holt who was at command post. Holt took over this lead. Whereabouts of~lllll~ on 6-14-03 UNKNOWN AT THIS TIME Lead 720 Lead from Dennis McGarvey, Vacaville CA 707-451-3940 Dennis stated he observed a female, 4' tall wearing shorts and having dark brunette hair shoulder length walking and running across his cul-de-sac. When this girl was approached by two other young girls, this girl ran away. Dennis stated he later learned that the girl had apparently moved in to a house in the area some time ago. Dennis believes this girl "has problems". Time frame of disappearance of Warner and when this girl moved into the neighborhood do not coincide. LEAD CLOSED AS INFORMATION Lead 714 Lead from Leslie that she observed a young female matching the description of Warner at a Wal-Mart in Worthington MN on 6-16-03 between the hours of 1715 and 1730 hours. McKinley spoke with Officer Kevin Flynn of the Worthington Police. Flynn obtained a copy of the store video tape from that day and will FedEx it to the command post. This lead will have to be reassigned when the tape is received. Lead 713 Lead from Kim Crego of Michigan 734-242-4192 of a possible sighting of Warner on June 21 at 1900 hours at a Meijer Discount Store on Warner Road. Crego described the young girl as 3'4' tall, page boy hair cut 6-8 yoa., very personable. Girl stated she was going to be visiting new friends. Physical description (6-8yoa) does not fit Warner 1 o fl -3049- MOUND POLICE DEPARTMENT CASE NUMBER: 03- 1551 INITIAL COMPLAINT REPORT DATE: 06/30/03 Lead 818 Lead from Joyce Emlan, 615 NW 6th St. Chisholm that the Oija Board told Joyce the child is in the area behind the old lumber yard/store in Chisholm - out fi.om 13 1~t Ave past Sandy Point. Lead taken as information Lead 716 Lead from Kathy Butcher 722 Greenfield Street, Eveleth 218-744-4562 that a male named TONY lives in the ar~a and is always watching young children. Gave a plate number of I-ILL078. The registered owner Ih i ~dob/08-08-53 address An #107 Eveleth. Called Eveleth pD and requested they speak with TONY. They took a taped statement .,~ ~o'm TONY c0r~e.e, mi~'g his movements on 6-14-03. TONY had made a theft report with the Eveleth PD in the early afternoon hours on 6-14-03. Stated he "believes" was at home the rest of the day with the exception of going to a store in Eveleth sometime in the late afternoon or early evening. Is unsure, however. Unknown status of lead at this time. Lead from Rock the Range attendees Checked with persons who paid for Rock the Range with personal checks. Ail those cogtaeted stated they were either only at Rock the Range on Friday or did not see anything unusual or suspicious on Saturday. Still waiting for responses to phone messages fi-om several attendees. Lead #'s 866, 875, 878, 880, 881,882, 884, 890, 892, 894, 889, 891,871 Lead 554 Lead was fi.om an anonymous individual to check on a ~ ~ dob/4-24-50 address of~l~ordic Ridge'Rd, Bovey MN 55709 Lead stated Anderson was also in the area of the Wetterling abduction at the time of that abduction. Contact Sterns County to have them check the Wetterling data base for Anderson. There was no match. Itasca County Deputy Williams attempted to make contact with Anderson to conduct an interview. No contact. Lead to be reassigned on 6-30-03 for further follow-up. Lead 275 Lead faxed from Fridley PD of possible sighting at a Holiday store on 6-18-03. Sighting reported by Kathleen Salzer. Salzer reported seeing a boy and a girl in an older station wagon at the gas pump. The car was being driven by a lone male. Kids appeared to be somewhat un-kept. Boy appeared to have some Asian in him and the girl appeared to have some Native American in her. Girl smiled at Salzer. Station wagon did not have 2ofl -3050- MOUND POLICE DEPARTMENT CASE NUMBER: 03- 1551 INITIAL COMPLAINT REPORT DATE: 06/30/03 license plates, but did have a 21 day sticker in back window. Male driver allowed the children to go into the store to the bathroom unaccompanied. Thought it was odd a lone male with two children. Video tape not available. Description of girl in car does not appear to match Warner Lead 839 Lead from~lllll~ .3_" ' ' I __~Drive Chaska ~l~lll~l~. Ronald was staying at a motel in Albert Lea on 6-26-03. Stated he observed a young female come into the motel with a lone male who registered. This was at approximately 2230 hours. The male registered also had a black dog with him. Contacted Officer Cantu of the Albert Lea and asked him to check with the motel. Cantu advised a male did register at about 2230 hours. Reservation was made several days in advance. Registration was for a Ii~lli~f 1639~[~een Bay WI phone 920-437-2693. Used Discover card for payment, Attempted call-no answer. Green Bay Police have no contact wit~ Lead 844 Lead from Laura Laky 1505 E Hwy 61, Grand Marais 218-387-2954. Stated that while praying was "told" Warner is with a male named JACK ROBERT (Robert is not the last name but the middle name) and is in an unknown house in Chisholm. Laky stated she would pray for more information. Lead closed as information. Lead 745 Report from Olmstead County Sheriff's Department that a motorist observed an older male and female with a young girl matching Warner's description at a rest/truck stop south of Rochester, MN. They three were in a vehicle with Ohio plates BQ64LC. Attempted contacting the registered owner several times, left messages on answering machine to call command post. To be reassigned. No contact on 6-27, 28 or 29. Lead 848 Lead from Jim Schnerr 218-723-8583 that the Task Force should look into the Black Market Adoption Ring to locate Warner. Lead closed as information Lead 584 Lead from Joyce Allsup of New Brighton 651-633-4415 that she observed a male party described as late 30's to early 40's, short to medium build with a slight mustache 160- 170#'s with a young female who looked like Warner. Saw them at a CUB FOODS store in New Brighton on 06-21-03. The male acted suspicious. No vehicle was observed. Contacted the CUB FOODS and was advised the video from June 21 was taped over on June 22. No video was available. 3 ofl -3051 - MOUND POLICE DEPARTMENT CASE NUMBER: 03- 1551 INITIAL COMPLAINT REPORT DATE: 06/30/03 Lead 900 Lead called in by Howard Sinker (h) 612-521-6312 (c) 612-269-8910 (w) 1-800-829-8742 ext 4385 who advised he observed an older woman with a small child near a boat access in the area of Garrison. Stated the woman referred to the child as "BEANER". Plate number given listed to Was able to track down new address and phone number for Montrose, MN ~l~l~. Talked withD~bra's daughter in Montrose. Debra is at a cabin in the Garrison area with her'g~anddaughter who is two years of age. Debra due home in late evening~hours on 6-29-03. Left message asking Debra to call command post When she arrives home. Lead 921 Lead teletyped from West Fargo Police regarding a male with two young girls stopped for traffic. Male acted weird. Vehicle listed to a Miltown WI. Called Polk County Sheriff' s Department ~ regarding Ander~,an. Anderson has twin girls. Is a little weird. A reliable person named Virgil, one of the ambulance personnel in Polk County, is a neighbor o£ Anderson. Virgil not home when called. Lead to be reassigned. Lead 772 Lead called in by Jeff Pass, Officer-Hibbing regarding a ~ International Falls MN~i~~. (phone company recording stating phone number not in service) International Falls PD interviewed~l~l~and took taped statement about his whereabouts on 6-14-03. I.F.P.D will hold on to statement. Attempted to make contact withq~at listed phone number. Number not in service according to phone company. Asked I.F.P.D. to go to house and have ~ call command post. ~ not home. Card left at ~lll~ house requesting he contact I.F.P.D. when he returned home. Lead to be reassigned. 4ofl -3052- 2003 10:36:45 t, 01:038i. OEt:001 t, 04: RQUEi. 0-? :BMNJ 0 0NP7DAHH93GG ~[]M: CJD Thu Jun 26, ;SAGE REQUIELJED BY I)RL.. T'C] U MN0690000. U. T' X I- ST. L.[]UIS COUNTY SHERIFF'S OF'FICE AND CHISHOL..M POLICE DEPARTMENT TO ALL L. AW ENFO i:~CEMEENT AGENCIIES ;IN MINNEESOTA RE~ POSSIBLE ABDUCTION OF FIVE YEAR OLD LEANNA WARNER OUT OF CHISHOI_M~ MINNES[)TA ON 6/14/03 CHISHOLM CHIEF (IF P(]L..ICE SCOTT ERICKSON AND ST. LOUIS COUNTY SI--IERIF:F R[]SS LITMAN ARE REQUE:STING ASSISTANCE FROM ALL LAW ENF[]RCEMEIq'T' AGENCIES IN MINNESOTA WITH T HE POSSIBL..E ABDUCTION OF 5 YEAR OLD LEANNA WARNER. LEANNA WAS LAST SEEN ON 06/1 4/03 AT APPR[]XIMATEL. Y 1'715 HOURS NEAR HIER HOME IN CI4iSHOLM, MN. NLJIqEIR[]US L_AW EIqF' ORCEME:NT AGENCIES HAVE ASSISTE:D WITH THEE INVESTIGATION BY FOLL. OWING UP ON NEARLY 800 LEADS. YOUR ASSISTANCE IS REQUESTED ON FRIDAY, SATURDAY AND SUNDAY .... JUNE 2'7TH THROUGH THE 29TH. WE ARE SPECIFICALL. Y L. OOKING F'OR SWORN L. AW ENFOIRCEMENT P E:RSDNIqEL TO INVESTIGA-I-E THE OPE]ti L_EADS. INTEF;,t,E;STED AGEh. ICIES CAN CON'FACT THE II',IVESTIGATIVE COMMAND CENTER A'T THE HIBBING MINNESOTA I..AW EIX.iF:'ORCE:hlENT CENT'Fi:i:;t A'T' 218/26;::.'-02.51.. THEE HIBBING I_AW IENF:'ORC]F'I',IENT' C EN"f'ER IS L. OCA'f'E:D AT 18:1.0 12TH AVENUES E. (I:NTERSECT];ON OF HWY :1.69 AND HOWARD STRE IF.'.': "1" ) H I B B I N G, hlt',l ,. PLEASE C[]NTAC:T THE COMMAND CEN'TEF~, IF: YOLJ CAN ASSiS'T'~ THE FOLL..OWING IS A L..iST OF AVAiL.,ABL. E ACCOMMODATI[]NS II',.i THE H];BBING AREA. ASSISTII'4G AGEN[.".IF2S AI:~E · I:.XPE. N~..L,:,,, '1'HANK 'Yr-t I1',.I Al}VA [.::'(:::iR MAI-':. :[ 1',!{;..:. 'T'HE ]: R OWN RE?JEI:~.VA-I' I OiXl!:'; PlI'4'CI ASE;O[]: ;[ F:'O R 0 LJ F:'. (:t S'E, :[ S T A hi C H ]: B B I N G 218/k~63- 8982 ',--41 BB I NG .... SUPER 8 MErT'EEL. 218/744-1661 ......... . EVEL. ETH INN 218/744-2703 EVELETH PARK INN II',ITERNATIONAL '-.,; I RG I Iq I A 218/749-1000 C:HIEEI::' SC'O-I"T EF:;tlCKSON - CHI SHOLM PD 'ii_'JHE;RiF:'F Ri]SS LI-FMAI',I - S'1'. L. DUIS COUNTY .... 1)UI_UTH, I"ll'q OI::'F~/S. BAL. L..AVANCE,, RE;CORI)S SUPE'RV. SI_CS(] - DULLJTH -3053- JAMES E. KURTZ Chief of Police MOUND POLICE 5341 Maywood R°ad Telephone Mound, MN 55364 Dispatch Fax (952) 472-0621 (763) 525-6210 (952) 472-0656 EMERGENCY 911 Dear Retailer: Please find the enclosed documentation Account Closed Checks, NSF Due to the high volume cases those cases that meet the attached criteria. to follow when confronted with ,,Fraudulent Credit Card use. we will generally accept only We will only be the amount of the check is $50.00 or greater. This is/due in part from our to use their resources in the area of violent Suggesting conciliation court instead of criminal court. The Mouh~d'~P6Ii~D~efi~'~lms ~: ...................... ~ had to Ughten its belt. We are asked to do more with less. Therefore, we have had to 100l~;at areas where we could cut back to free up investigators for more serious crimes, we felt we could be more cost effective. The adherence to these ~d01ines?iis i~fatiye :{~;~?de~ for :the round Police Department to proceed with a successful criminal iaVestigafi0nand'~5(~secUti°nl ·: Please take a few minutes' them for review by your em oyees. ,~, .... ~ ~. ~, ~ ~: .~r Sincerely, -~ ' : i': ''~i'5! Chief of Police Mound Enclosures -3055- TO: CITIZENS AND THE BUSINESS COMMUNITY OF MOUND CHECK ACCEPTANCE / CREDIT CARD FRAUD GUIDELINES Economic loss to individuals and businesses in the City of Mound due to bad checks and credit card fraud is an ever-increasing problem. In an effort to assist you with these problems, the Mound Police Department has developed guidelines for accepting checks along with a policy for criminal prosecution. By following the acceptance guidelines and utilizing the self-help packet (enclosed), your criminal complaint will be expedited and your losses through bad checks and credit card fraud will be lowered. Please be aware that a criminal complaint does not guarantee economic recovery from your bad check losses. You may also wish to consider filing a civil complaint in the Hennepin County Conciliation Court at the Ridgedale Service Center, 12601 Ridgedale Drive, 952/541-7000. Be sure to bring a copy of the check. To have your case investigated and prosecuted, the following guidelines must be followed: Proper identification must have been used at the time the check was accepted. Proper identification consists of either a photo Minnesota driver's license or a photo Minnesota non-qualification identification card. Paper driver's licenses are not acceptable identification. 2. All checks must have been commercially printed and numbered by means of a bank process. The individual accepting the check must verify the passer's identification. This is done by comparing the photo on the I.D. with the person passing the check and the I.D. number with the number on the check. If the I.D. number is not already printed on the check, it must be written or stamped on the check. The person accepting the check will then circle the I.D. number and initial the check verifying that proper identification was presented. 4. There should be a means of determining which person accepted the check or credit card. The check must have been processed through the bank for collection and returned as non-collectible. In the case of a forgery, the check need not go through the bank system. A five day Notice-of-Demand which complies with all provisions of the Minnesota Statute 609.535 must be sent on NSF and Account Closed Checks. This notice may be sent by either registered mail (return receipt requested), or by regular mail accompanied with a notarized Affidavit-of-Service. Registered mail is preferred. If there is no response within 30 days to the five day Notice-of- Demand, a letter must then be sent to the bank requesting account information in -3056- accordance with Minnesota Statute 609.535, subdivision 7. The bank has ten days in which to respond to your letter. In the case where the transaction is found to be a forgery, a Notice-of-Demand is not necessary, but rather an Affidavit-of-Forgery is sent to the account holder along with a copy of the check. The account holder must return the affidavit signed and notarized. 8. Cases involving credit card fraud will be handled in a manner similar to check cases, under these guidelines and state statute 609.821. 9. To initiate prosecution in a case, you must bring the following items to the Police Department: a. Contact Log b. A copy of the Demand-for-Payment notice. c. An Affidavit-of-Service by regular mail or a certified mail receipt (which is the preferred way). d. Checking Account Status Request e. The original check / charge receipt. f. An Affidavit-of-Forgery, in the case of a forgery. g. The Checking Account Status Request information letter and any other relative paperwork to the case. h. Theft by Check / Credit Card Report The above listed items must be presented to the Mound Police Department for prosecution within 90 days from the date of the original transaction. You may make an appointment by calling the Mound Police Department at 952/472-0621 Generally, appointments will be made between the hours of 9:00AM and 3:30PM Tuesday through Friday. The Mound Police Department's goal is to provide you with an orderly process by which you may file a criminal complaint. It is also your responsibility to be aware of methods to protect yourself and your business. When you see a check or credit card you are uncertain of, remember - you do not have to accept it. Sincerely, James E. Kurtz Chief of Police Mound Police Department -3057- STEP #~! Attempt contact by phone or other means prior to Step B. Complete the contact log and include with the case file when submitted to police. Be When you receive a check back from the bank marked NSF (Non-Sufficient Funds) or Account Closed, you must send the attached letter of Demand for Payment. This letter is to be sent Certified Mail- Return Receipt Requested. In the case of a Forgery, you may disregard the demand for payment and proceed to the next step. Crime Preyention Tip "Trust your instincts, if something feels wrong, it probably is" Dean Mooney Belongs Doesn't Belong Belongs -3058- CONTACT LOG N.S.F./ACCT. CLOSED CHECKS AND RENTAL PROPERTY NO CLERK I.D. DATE/TIME NAME OF CONTACT AND RF--SULT I. 2. 3. 4. 5. 6. 7. 8. 9. 1) 3) Attempt three contacts in a seven-day period. Send notice and demand letter after thrid contact or attempt. Send bank status letter (for checks) thirty days after mailing notice/demand letter. NOTES: -3059- NOTICE AND DEMAND FOR PAYMENT OF DISHONORED CHECK , you are hereby notified that a check dated ., 19 , drawn on .The bank of (citY) , in the amount of $ , bearing the signature of has been returned unpaid with the notation that payment has been refused because of DEMAND is hereby made for the paymjent of the above mentioned check. Your attention is called to Minnesota Statutes 332.50 and 609.535 pertaining to the issuance of a worthless check, excerpts of which appear below, and YOU ARE HEREBY NOTIFIED that if you do not pay the check within the time allowed by the statute, the drawee bank may release information relating to the account and this matter will be referred to the proper authorities for prosecution. Action to recover the amount of the worthless check may be commenced in a concili~.tion court located in the county where the check is issued. Remit to Dated Address MINNESOTA STAT.UTES 609.535 ISSUANCE OF DISHONORED CHECKS Subdivision 1. Definitions. For the purpose of this section, the following terms have the meaning given them. (a) "Check" means a check, draft, order of withdrawal or similar negotiable instrument. (b) 'Credit" means an arrangement or understanding with the drawee for the payment of a check. Subdivision 2. Acts Constituting. Whoever issues a check which, at the time of issuance, he/she intends shall not be paid, is guilty of a misdemeanor. In addition, restitution may be ordered by the court. Subdivision 3. Proof of Intent. Any of the following is evidence sufficient to sustain a finding that the person at the time he/she issued the check intended it should not be paid: (1) Proof that, at the time of issuance, he/she did not have an account with the drawee; (2) Proof that, at the time of issuance, he/she did not have sufficient funds or credit with the drawee and that he/she failed to pay the check within five business days after mailing of notice nonpayment or dishonor as provided in this subdivison; or (3) Proof that, when presentment was made within a reasonable time, the issuer did not have sufficient funds or credit with the drawee and that he/she failed to pay the check within five business days after mailing of notice of nonpayment or dishonor as provided in this subdivision. Notice of nonpayment or dishonor that includes a citation to and a description of the penalties in this section shall be sent by the payee or holder of the check to the maker or drawer by certified mail, return receipt requested or by regular mail, supported by an afficavit of service by mailing, to the address printed on the check. Refusal by the maker or drawer of the check to accept certified mail notice or failure to claim certified or regular mail notice is not a defense that notice was not received. The notice may state 'that unless the check is paid in full within five business days after mailing of the notice of nonpayment or dishonor, the payee or holder of the check will or may refer the matter to proper authorities for prosecution under this section. An affidavit of service by mailing shall be retained by the payee or holder of the check. -3060- Subdivision 4. Proof of Lack of Funds or Credit. If the cheCk has been protested, the notice of protest is adm. iss~ble as proof of presentation, nonpayment and protest and is evidence sufficient to sustain a finding that there was a lack of funds or credit with the drawee. Subdivision 5. Exceptions. This section doees not apply to a postdated check or to a check given for a past consideration, except a payroll check or a check issued to a fund for employee benefits. Subdivision 6. Release of Account Information to I~w Enforcement Authoritiesl A drawee shall release the information specified below to any state, county or local law enforcement or prosecuting agency which certified in writing that it is investigating or prosecuting a complaint against the drawer under this section or section 609.52, subdivision 2, clause (3) (a), and that 15 days have elapsed since the mailing of the Notice of Dishonor required by subdivisions 3 and 8. This subdivision applies to the following information relating to the drawer's account: (1) Documents relating to the opening of the account by the drawer; (2) Notices regarding nonsufficient funds, overdrafts and the dishonor of any check drawn on the account within a period of six months of the date of request. (3) Periodic statements mailed to the drawer by the drawee for the periods immediately prior to, during and subsequent to the issuance of any check which is the subject of the investigation or prosecution or (4) The last known home and business addresses and telephone numbers of the drawer. The drawee shall release all of the information described in clauses (I) to (4) that it possesses within ten days after receipt of a request conforming to all of the provisions of this subdivision. The drawee may impose a reasonable fee for the cost for furnishing this information to law enforcement or prosecuting authorities, not to exceed 15 cents per page. A drawee is not liable in a criminal or civil proceeding for releasing information in accordance with this subdivision. Subdivision 7. Rele2.se of Account Information to Payee or Holder. A drawee shall release the information specified in clauses (1) and (2) to'the payee or holder ora check that has been dishonored who makes a written request for this information and states in writing that the check has been dishonored and that 38 days have elapsed since the mailing of the notice described in subdivision 8 and who accompanies this request with a copy of the dishonored check and a copy Notice of Dishonor. The requesting payee or holder shall notify the drawee irrunediately to cancel this request if payment is made before the drawee has released this information. This subdivision applies to the following information relating to the drawer's account: (1) Whether at the time the check was issued or presented for payment the drawer had sufficient funds or credit with the drawee and whether at that time the account was open, closed or restricted for any reason and the date it was closed or restricted. (2) The last known home address and telephone number of the drawer. The drawee may not release the address or telephone number of place of employment of the drawer unless the drawer is a business entity or the place of employment is the home. The drawee shall release all of the information described in clauses (I) and (2) that it possesses within ten days after receipt of a request conforming to all of the provisions of this subdivision. The drawee may require the person requesting the information to pay the reasonable costs, not to exceed 15 cents per page, of reproducing and mailing the requested infromation. A drawee is not liable in a criminal or civil proceeding for releasing information in accordance with this subdivision. Subdivision 8. Notice. The provisions of subdivisions 6 and 7 are not applicable unless the notice to the maker or drawer required by subdivision 3 states that if the check is not paid in full within five business days after mailing of'the notice, the drawee will be author/zed to release information relating to the account to the payee or holder of the check and may also release th. is information to law enforcement or prosecuting authorities. IvIINNESOTA STATUTES 332.50 WORTHLESS C_I4'~]c_OLLECTIONS mailing a Notice of Dishonor that includes a citation to sections 332.50 and 609.535 and a description of the penalties contained in these sections, in compliance with subdivision 3, is liable to the holder for the amount of the check plus a civil penalty of up to $1130, interest at the rate payable on judgements pursuant to section 5-19.09 on the face amount of the check from the date of dishonor and reasonable attorney fees if the amount of the check is over $1,250. A service charge not exceeding $15 may be imposed immediately on any dishonored check, regardless of mailing a Notice of Dishonor, if written notice of the service charge was conspicuously displayed on the premises when the check was issued. -3062- If within 30 days, payment has not been received or you are advised the check was forged, you must send a letter to the bank along vdth a copy of the check requesting account information. The bank has 1,,0, days to respond to your letter. This step is only necessary with transactions involving checks and is ,,not required on cases with credit cards. Crime Prevention, Tip Discourage this guy from burglarizing your house or business by trimming your scrubs and maintaining adequate lighting. -3063- CHECKING ACCOUNT STATUS REQUEST DATE: FROM: RE: 'ACCOUNT NAME ACCOUNT NUMBER CHECK # · A Notice of Demand for Payment of dishonored check has been sent to your account holder. Pursuant to Minnesota Statute 609.535, Subdivision 7, please provide the following information within the 10 day period prescribed. 1. Status of account at the time check was issued: (circle one) a. open b. closed c. restricted A. If closed or restricted, by whom? B. Why? C. Date closed or restricted? 3. Account balance on the date check was issued: 4. Current account status: (circle one) a. open b. closed c. restricted 5. If a business account, list authorized signature: 6. Last known address and telephone for account holder/s, if different from that on check: A photocopy of the dishonored check is enclosed for your convenience. This information will be utilized by the Mound Police Department. Thank you for your assistance. Sincerely, Enclosure -3064- STE,P #3 If you are advised by the account holder, bank or credit card company that the transaction was a forgery, obtain an Affidavit of Forgery, signed and notarized from the account holder. A completed Affidavit of Forgery may be available from the bank/credit card company. If not, contact the account holder and have him/her fill out the attached form. Crime Prevention Tip Always use good quality locks to secure your.property and valuables. -3065- MOUND POLICE DEPARTMENT AFFIDAVIT OF FORGERY CHECK / FINANCIAL TRANSACTION CARD name check/credit receipt from (business) written/charged on check/credit card from hereby state that I did not sign my as the check/card holder or , dated (bank/credit card company) I did not authorize anyone to use or sign my name, or to use my checking/credit card number, · I further did (account number) (check number) not authorize anyone to purchase anything with my check/credit card nor did I receive any benefit whatsoever from said transaction, or proceeds thereof, and that said transaction is a forgery. (signature) DATE: Notary/Other Authorized Official: -3066- STEP #4 After the required notifications and affidavits are completed, the front portion of the Theft by Check/Credit Card Report is to be filled out in its entirety. Include full names, list witnesses, and write a brief account of what happened. PLEASE PPdNT. In cases involving forgeries, a witness statement (on the accompanying form) is required from the person accepting the transaction and from all other witnesses. *With these steps completed, you are ready to bring the case to the Mound Police Department at 5341 Maywood Road, during regular working hours. Crime Prevention Tip -3067- Mound Police Department MN0271300 THEFT BY CHECK / CREDIT CARD REPORT Date & Time Report Made: Case No. offs.., iuoc.. I Grid No: Business Name: Person Reporting: Reported To: [ Bank Check Drawn On: Business Address: Address: Business Phone: Phone: How received: Police ( ) Radio ( ) Citizen ( ) Station ( ) Letter ( ) Phone ( ) IDate of Check: Check Number: Check Declared: Account Closed ( ) NSF ( ) Forged ( ) Other ( ) Check Payable To: Amount: Identification Used: Account Number: Person Who Accepted Check: Certified Demand For Payment Sent: (Date) Signed: Yes ( ) Can Witness Identify the Passer: No () Attached: Yes ( ) No ( ) Account Name: Check Signed by: Account Address: Bank Letter Sent: Yes () , No () Account Phone: Attached: Yes ( ) ~o ( ) Narrative: Case Cleared by: Request for Compl 'a~nt ( ) Unfounded ( ) Exceptionally ( ) Other ( ) -3068- MOUND POLICE DEPARTMENT 5341 M. AYWOOD ROAD, MOUND MN 55364 (612) 472-0621 Statement Form Page _ of Name: Date:__/__/__ Time: Date of Birth: I__1__ Age: .... Home Addre~: Home Phone: Work Phone: Employer:. Work Address: :"; I make the t:ollowing flee and voluntary statement lo Officer of the Mound Police Department. I know I do not have to make this statement. I understand that I have the right to remain silent and anything I say can be used against me in a court. I understand that I have the right to a lawyer and if I can not al"ford a lawyer, one will be appointed to represenl me. I have not received any promises or threats Io induce me to make this statement. Initials: Details: ignature: ,fficer. Date: / / Date :.____/____./~ -3069 - Narrative (Continued): MOUND POLICE DEPARTMENT 5341 MAYWOOD ROAD, MOUND, MN 55364 (612)472-0621 Statement Continuation Page of Signature: Officer: Date: Date: / / -3070- Minnesota Statutes 2002, 609.535 Page 1 of 4 Minnesota Statutes 2002, Table 'of Chapters Table of contents for Chapter 609 609.535 Issuance of dishonored checks. Subdivision 1. Definitions. For the purpose of this Section, the following terms have the meanings given them. (a) "Check" means a check, draft, order of withdrawal, or similar negotiable or nonnegotiable instrument. (b) "Credit" means an arrangement or understanding with the drawee for the payment of a check. Subd. 2. Acts constituting. Whoever issues a check which, at the time of issuance, the issuer intends shall not be paid, is guilty of issuing a dishonored check and may be sentenced as provided in subdivision 2a. In addition, restitution may be ordered by the court. Subd. 2a. Penalties. (a) A person who is convicted of issuing a dishonored check under subdivision 2 may be sentenced as follows: (1) to imprisonment for not'more than five years or to payment of a fine of not more than $10,000, or both, if the value of the dishonored check, or checks agqregated under paragraph (D), is laoze than $500; (2) to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both, if the value of the dishonored check, or checks aggregated under paragraph (b), is more than $250 but not more than $500; or (3) to imprisonment for not more than 90 days or to payment of a fine of not more than $700, or both, if the value of the dishonored check, or checks aggregated under paragraph (b), is no~ more than $250. " (b) In a prosecution under this subdivision, the value of dishonored checks issued by the defendant in violation of this subdivision within any six-month period may be aggregated and the defendant charged accordingly in applying this section. When two or more offenses are committed by the same person in two or more counties, the accused may be prosecuted in any county in which one of the dishonored checks was issued for all of the offenses aggregated under this paragraph. Subd. 3. Proof of intent. Any of the following is evidence sufficient to sustain a finding that the person at the time the person issued the check intended it should not be paid: (1) proof that, at 'the time of issuance, the issuer did not have an account with the drawee; (2) proof that, at the time of issuance, the issuer did not have sufficient funds or credit with the drawee and that the h~p:#www, revisor, leg. stare, mn. us/~ms/609/535, html 6/17/2003 -3071 - Minnesota Statutes 2002, 609.535 Page 2 of 4 issuer failed to pay the check within five business days after mailing of notice of nonpayment or dishonor as provided in this subdivision; or (3) proof that, when presentment was made within a reasonable time, the issuer did not have sufficient funds or credit with the drawee and that the issuer failed to pay the check within five business days after mailing of notice of nonpayment or dishonor as provided in this subdivision. Notice of nonpayment or dishonor that includes a citation to and a description of the penalties in this section shall be sent by the payee or holder of the check to the maker or drawer by certified mail, return receipt requested, or by regular mail, supported by an affidavit of service by mailing, to the address printed on the check. Refusal by the maker or drawer of the check to accept certified mail notice or failure to claim certified or regular mail notice is not a defense that notice was not received. The notice may state that unless the check is paid in full within five business days after mailing of the notice of nonpayment or dishonor, the payee or holder of the check will or may refer the matter to proper authorities for prosecution under this section. An affidavit of service by mailing shall be retained by the payee or holder of the check. Subd. 4. Proof of lack of funds Or credit. If the check has been protested, the notice of protest is admissible as proof of presentation, nonpayment, and protest, and is evidence sufficient to sustain a finding that there was a lack of funds or credit with the drawee. Subd. 5. Exceptions. This section does not apply to a postdated check or to a check given for a past consideration, except a payroll check or a check issued to a fund for employee benefits. Subd. 6. Release of account information to law enforcement authorities. A drawee shall release the information specified below to any state, county, or local law enforcement or prosecuting authority which certifies in writing that it is investigating or prosecuting a complaint against the drawer under this section or section 609.52, subdivision 2, clause (3) (a), and that 15 days have elapsed since the mailing of the notice of dishonor required by subdivisions 3 and 8. This subdivision applies to the following information relating to the drawer's account: (1) documents relating to the opening of the account by the drawer and to the closing of the account; (2) notices regarding nonsufficient funds, overdrafts, and the dishonor of any check' drawn on the account within a period of six months of the date of request; (3) periodic statements mailed to the drawer by the drawee http://www, revisor, leg. state, mn. us/stats/609/535, html 6/17/2003 -3072- Minnesota Statutes 2002, 609.535 Page 3 of 4 for the periods immediately prior to, during, and subsequent to the issuance of any check which is the subject of the investigation or prosecution; or (4) the last known home and business addresses and telephone numbers of the drawer. The drawee shall release all of the information described in clauses (1) to (4) that it possesses within ten days after receipt of a request conforming to all of the provisions of this subdivision. The drawee may not impose a fee for furnishing this information to law enforcement or prosecuting authorities. A drawee is not liable in a criminal or civil proceeding for releasing information in accordance with this subdivision. Subd. 7. Release.of account information to payee or holder. (a) A drawee shall release the information specified in paragraph (b), clauses (1) to (3) to the payee or holder of a check that has been dishonored who makes a written request for this information and states in writing that the check has been dishonored and that 30 days have elapsed since the mailing of the notice described in subdivision 8 and who accompanies this request with a copy of the dishonored check and a copy of the notice of dishonor. The requesting payee or holder shall notify the drawee immediately to cancel this request if payment is made before the drawee has released this information. (b) This subdivision applies to the following information relating to the drawer's account: (1) whether at the time the check was issued or presented for payment the drawer had sufficient funds or credit with the drawee, and whether at that time the account was open, closed, or restricted for any reason and the date it was closed or restricted; (2) the last known home address and telephone number of the drawer. The drawee may not release the address or telephone number of the place of employment of the drawer unless the drawer is a business entity or the place of employment is. the home; and (3) a statement as to whether the aggregated value of dishonored checks attributable to the drawer within six months before or after the date of the dishonored check exceeds $250; for purposes of this clause, a check is not dishonored if payment was not made pursuant to a stop payment order. The drawee shall release all of the information described in clauses (1) to (3) that it possesses within ten days after receipt of a request conforming to all of the provisions of this subdivision. The drawee may require the person requesting the information to pay the reasonable costs, not to exceed 15 cents per page, of reproducing and mailing the requested information. (c) A drawee is not liable in a criminal or civil http://www, revisor, leg. state, mn. us/stats/609/535, html 6/17/2003 -3073- Minnesota Statutes 2002, 609.535 Page 4 of 4 proceeding for releasing information in accordance with this subdivision. Subd. 8. Notice. The provisions of subdivisions 6 and 7 are not applicable unless the notice to the maker or drawer required by subdivision 3 states that if the check is not paid in full within five business days after mailing of the notice, the drawee will be authorized to release information relating to the account to the payee or holder of the check and may also release this information to law enforcement or prosecuting authorities. HIST: 1963 c 753 art 1 s 609.535; 1967 c 466 s 1; 1971 c 23 s 56; 1974 c 106 s 1,2; 1981 c 202 s 1; 1981 c 247 s 1-3; 1983 c 225 s 10; 1984 c 436 s 34; 1985 c 140 s 3; 1986 c 444; 1988 c 527 s 2,3; 1991 c 256 s 11-13; 1992 c 569 s 26; 1999 c 218 s 3 Copyright 2002 by the Office of Revisor of Statutes, State of Minnesot&. http://www, revisor, leg. state, mn. us/stats/609/535, html 6/17/2003 -3074- 07/22/03 16:10 FAX i 952 472 4771 THO~S E. CASEY ~01 luly 21, Mound City Coum:il c/o K~ndis M. Hanson City Manager 5341 Maywood Road Mound, MN 55364 RE: Brunswick Park, Mound, lVfinnesota PID: 24-117-24-41-0136 Dear City Council aad Ms. Hanson, VIA FAX ONLY (952) 472-0620 ~)m C~asey~ 2854 Carnbridg~ Mound, MN55364 'esources as it is. ion of any property tax revenues from a g up this Park property. ncourage other adjoining properly owners il refrain from voting on this issue until cdc timely written notification of this d for the projected city property tax Thank you for your consideration. Furthermore, I reconunend that the City Counc (1) neighbors within at least two blocks of the Park matter, and (2) an accurate written estimate be provide revenues from a private property use. no "improvements.") 5. Mound citizens have relatively limited park 6. The City of Mound will receive a small port private property use. 7. There is no "public interest" shown for giviz 8, Voting in favor of giving up this Park may e to try the same thing with other punic land. It has come to my attention just today that the 2ity Council is being asked to consider giving up a City Park located on Brunwick Road. As gar as I know, no one in the neighborhood (except perhaps adjoining property owners) received v~fitten notification ofthis proposal. / I recommend that the City Council vote to retain this Park for the following reasons: l l, ve. up, the l'ark is gone forever. / 2. The Park is a neighborhood asset, a place £~r children and others to,,play. Eve,n, though some homes nearby have no children, these ho,,~ses are in the relatively affordable housing price range and will likely turn over (eventually) to younger families with small children. 3. Although the Park needs some maintenancelattention, it provides large shade trees along with the opportunity for a natural understory, if~ot used for a play area. 4. A. Park should never be given up just because it needs to be "cleaned up." It could be placed in the Adopt-A Green Space Program. (I'm sulprised that staff stated "... the area would be never be developed as a Park? It could be a "passi, ~e" park that needs little maintenance and 5341 Maywood Road Mound, MN 55364 (952) 472-3190 Memorandum To: Honorable Mayor and From: Sarah Sm~t~ Date: 7/21/2003 Re: City Code Amendment - Enactment of Franchise Fee on Centerpoint Energy Minnegasco As the City Council is aware, the Mound City Council adopted a new gas franchise ordinance in 2002 which includes a provision to allow for the collection of franchise fees. In short, a franchise fee is charged to the utility by the municipality and subsequently is passed through to the customer and/or consumer on the monthly bill. As part of the City's recent budget discussions associated with cuts in Local Government Aid (LGA), the City Council expressed support for the enactment of both gas and electric franchise fees in the amount of $2.00 per meter for residential and commercial customers. For your review and consideration, a dram ordinance to adopt a gas franchise fee schedule has been included. So as to allow for timely processing of the ordinance, City staff is proposing to add this time to the agenda for the July 22, 2003 meeting. Please note that Exhibit A as referenced in the ordinance is being prepared by Arne Hendrickson of Centerpoint Energy Minnegasco and is forthcoming. In the event you have any questions, please do not hesitate to contact either City Manager Kandis Hanson or myself. ORDINANCE NO. CITY OF MOUND COUNTY OF HENNEPIN STATE OF MINNESOTA AN ORDINANCE IMPLEMENTING A GAS FRANCHISE FEE ON CENTERPOINT ENERGY MINNEGASCO FOR PROVIDING GAS SERVICE WITHIN THE CITY OF MOUND THE CITY OF MOLrND ORDAINS: SECTION 1. The City of Mound Municipal Code Appendix __ reference to the following Special Ordinance. is hereby amended to include Subdivision 1. Purpose. The Mound City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide gas and electric service within the City of Mound. (a) Pursuant to City Ordinance No. , a Franchise Agreement between the City and CenterPoint Energy Minnegasco, the City has reserved its right to impose a franchise fee on CenterPoint Energy Minnegasco in amount and fee design as agreed. The parties have agreed on a fee as set forth in the fee schedule attached as Exhibit A. Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on CenterPoint Energy Minnegasco under its Gas Franchise in accordance with the schedule attached hereto and made a part of this ordinance, commencing with the CenterPoint Energy Minnegasco's August billing month. The City reserves the right to review the fee for purposes of termination, continuation or modification. The City further retains its rights under Minnesota law during the term of the underlying franchise. Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance with the terms set forth in Exhibit B attached hereto. Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that CenterPoint Energy Minnegasco will surcharge its customers in the City the amount of the fee. Subd. 5. Record Support for Payment. CenterPoint Energy Minnegasco shall make each payment when due and, if requested by the City, shall furnish a statement of gas usage by each customer class at the time of each payment for the period for the payment was made. CenterPoint Energy Minnegasco shall permit the City's designated representative reasonable access to the company's records for the purpose of verifying such statements. JMS-231049v 1 MU200-95 Subd. 6. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement. Subd. 7. Effective Date of Franchise Fee. Notwithstanding the effective date of this ordinance and notwithstanding any contrary provisions in the Franchise, the effective date of the fee collected under Subdivision 2 of this ordinance is the later of ten (10) days after the publication or after the sending of written notice enclosing a copy of this adopted ordinance upon CenterPoint Energy Minnegasco by certified mail. It has been agreed to in advance by CenterPoint Energy Minnegasco's representatives that CenterPoint Energy Minnegasco will abide by the provisions of this Subdivision 7. SECTION 2. This ordinance takes effect as provided herein. Read by the City Council of the City of Mound this ~ day of ,2003. Read and passed by'the City Councilofthe City ofMoundthis__ ,2003. day of , Mayor APPROVED AS TO FORM: , City Clerk/Administrator John Dean, City Attorney .IMS-231049v 1 MU200-95 EXHIBIT A CENTERPOINT ENERGY MINNEGASCO GAS FRANCHISE FEE SCHEDULE Class Meter Fee Residential Comm. Finn Non-Demand Comrm Firm Demand Small Interruptible Large Interrupfible Firm Transportation Intermptible Transportation $0.0 $o.o $o.o $o.o $o.o $O.O $o.o JMS-231049v 1 MU200-95 EXHIBIT B 1. Fee Collection. The franchise fee shall be payable not less than monthly during complete b'dling months of the period for which payment is to be made. The fi-anchise fee formula may be changed from time to time; however, the change shall meet the same notice requirements and the fee may not be changed more often than annually. Such fee shall not exceed any amount which the Company may legally charge to its customers prior to payment to the City. Such fee is subject to subsequent reductions to account for uncollectibles and customer refunds incurred by the Company. The Company agrees to make available for inspection by the City at reasonable times all records necessary to audit the Company's determination of the fi'anchise fee payments. JMS-171561v7 SH155-77 page 1 of 1 Kandis M Hanson From: To: Sent: Attach: Subject: "Strommen, James M" <jstrommen@Kennedy-Graven.com> "Kandis Hanson" <KandisHanson@cityofmound.com> Monday, July 21, 2003 2:41 PM 4Y@101LDOC ORDINANCE NO This is the correct Mgco fee ordinance. I will resend Exh. B, the payment terms. Mgco provides Exh. A. 7/21/03 Mound City Code 625.00 'Section 625 - GAS UTILITY FRANCHISE 625.05 Definitions. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: Subd. 1 City. The City Of Mound, County of Hennepin, State of Minnesota. Subd. 2. City Utility System. Facilities used for providing public utility service owned or operated by City or agency thereof, including sewer, storm sewer, water service, street lighting and traffic signals, but excluding facilities for providing heating, lighting, or other forms of energy. Subd. 3. Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all or part of the authority to regulate gas retail rates now vested in the Minnesota Public Utilities Commission. Subd. 4. Company. Reliant Energy Minnegasco, a division of Reliant Energy Resources Corporation. a Delaware corporation, its successors and assigns including all successors or assigns that own or operate any part or parts of the Gas Facilities subject to this franchise. Subd. 5. Gas Facilities. Gas transmission and distribution pipes, lines, ducts, fixtures, and all 'necessary equipment and appurtenances owned or operated by the Company for the purpose of providing gas energy for public or private use. Subd. 6. Gas. Natural gas, manufactured gas, mixture of natural gas and manufactured gas or other forms of gas energy. Subd. 7. Non.Betterment Costs. Costs incurred~ by Company from relocation, removal or rearrangement of Gas Facilities that do not result in an improvement to the Gas Facilities. ' Subd, 8. Notice. A writing served by any party or parties on any other party or parties. Notice to Company shall be mailed to Reliant Energy Minnegasco, V.P., Regulatory & Supply Service, 800 LaSalle Avenue, Minneapoli.s, MN 55402-2006. Notice to the City shall be mailed to the City Manager, City of Mound, 5341 Maywood Road, Mound, MN 55364-1627. Any party may change its respective address for the purpose of this Ordinance by written notice to the other parties. Subd. 9. Public Way. Public right-of-way within the City as defined in Minn. Stat. § 237.162, subd. 3. Subd. 10. Public Ground. Land owned or otherwise controlled by the City for Park, open space or similar public purpose, which is held for use in common by the public. 1 7/21/02 Mound City Code 625.10 625.10 ADOPTION OF FRANCHISE. Subd. 1. Grant of Franchise. City hereby grants Company, for a period of 20 years from the date this Ordinance is passed and approved by the City, the right to import, manufacture, distribute and sell gas for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. This right includes the provision of Gas that is (i) manufactured by the Company or its affiliates and delivered by the Company, (ii) purchased and delivered by the Company or (iii) purchased from another source by the retail customer and delivered by the Company. For these purposes, Company may construct, operate, repair and maintain Gas Facilities in, on, over, under and across the Public Ways and Public Grounds, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject however, to such lawful regulations as may be adopted by separate ordinance and as currently exist under City Ordinance 570, codified as Section 7.17 ("Section 7.17"). The Company shall be notified 60 days in advance of proposed changes to Section 7.17. The City and Company shall negotiate in good faith to reach mutually acceptable changes. If the City and Company are unable to agree, disputes will be handled under the terms of Section 2.5 of this Ordinance. If a provision of Section 7.17 conflicts with a provision on the same subject in this Ordinance, this Ordinance will control. Subd. 2. Effective Date; Written Acceptance. This, franchise shall be in force and effect from and after its passage of this Ordinance and publication as required by law and its acceptance by Company. If Company does not file a written acceptance with the City within 90 Days after the date the City Council adopts this Ordinance, or otherwise places the City on written notice, at any time, that the Company does not accept all terms of this franchise, the City Council by resolution may either repeal this ordinance or seek its enforcement in a court of competent jurisdiction. Subd. 3. Service and Gas Rates. The service to be provided and the rates to be charged by Company for gas service in City are subject to the jurisdiction of the Commission Subd. 4. Publication Expense. The expense of publication of this Ordinance shall be paid by Company. Subd. 5. Dispute Resolution. Ifeither party asserts thatthe other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written Mound City Code 6~__5.10, Subd. 5 with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief permitted by law. Subd, $, Continuation of Franchise. If the City and the Company are unable to agree on the terms of a new franchise by the time this franchise expires, this franchise will remain in effect until a new franchise is agreed upon, or until 90 days after the City or the Company serves written Notice to the other party of its intention to allow the franchise to expire. 625.15 LOCATION, OTHER REGULATIONS. Subd. 1, Location of Facilities. Subject to regulation under Section 7.17, Gas Facilities in the Public Way shall be located, constructed,, and maintained so as not to disrupt normal operation of any City Utility System. Gas Facilities may be located on Public Grounds as determined by the City. Subd. 2. Restoration of Public Ways and Public Ground. Restoration of the Public Way shall be subject to Section 7.17. After completing work requiring the opening of Public Ground, the Company shall restore the Public Ground to as good a condition as formerly existed, and shall maintain the surface in good condition for six (6) months thereafter. All work shall be completed as promptly as weather permits. If Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground in the said condition and' after demand to Company to cure, City shall, after passage of a reasonable period of time following the demand, but not to exceed five days, have the right to make the restoration of the Public Ground at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section. Subd. 3. Waiver of Performance Security. 'l'fie City hereby waives any requirement for Company to post a construction performance bond, certificate of insurance, letter of credit or any other form of security or assurance that may be required under Section 7.17 currently or in the future, The City reserves all other rights under Section 7.17 to enforce Company performance requirements for work in the Public Way or Public Ground. Subd. 4 Avoid Damage to Gas Facilities. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Gas Facilities while performing any activity. 3 7/21/02 Mound City Code 625.20 625.20 RELOCATIONS. Subd. 1. R~elocation of Gas Facilitie.% Relocation of Gas Facilities in Public Ways shall be subject to Section 7.17. City may require Company at Company's expense to relocate or remove its Gas Facilities from Public Grounds upon a finding by City that the Gas Facilities have become or will become a substantial impairment to the existing or proposed public use of the Grounds. Relocation Gas Facilities in Public Ground shall comply with applicable City ordinances consistent with law. Subd. 2. Proiects with Federal Funding. Relocation, removal, or rearrangement of any Company Gas Facilities made necessary because of the extension into or through City of a federally-aided highway project shall be governed by the provisions of Minnesota Statutes Section 161.46, as supplemented or amended. City shall not order Company to remove or relocate its Gas Facilities when a-Public Way is vacated, improved or realigned because of a renewal or a redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless agreement is made that the reasonable Non-Betterment Costs of such relocation and the loss and expense resulting therefrom will be paid to Company when available to the City. The City need not pay those portions of such for which reimbursement to it is not available. Subd. 3. No Waiver. The provisions of Section 4 "apply only to Gas Facilities constructed in reliance on a permit or franchise from City and Company does not waive its rights under an easement or prescriptive right or State 'or County permit. 625.25 _CHANGE IN FORM OF GOVERNMENT. Any change in the form of govemment of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. · 625.30 .FRANCHISE FEF, Subd. 1. _Reservation of Riqhts. The City reserves all rights under Minn. Stat. § 216B.36, to require a franchis(~ fee at any time during the term of this franchise. If the City elects to require a franchise fee it shall notify Company and-negotiate in good faith to reach a mutually acceptable fee agreement, which shall be set forth in a separate ordinance and not adopted until at least 60 days after Notice enclosing such proposed ordinance has been served upon the Company by certified mail; If the City and Company are unable to agree on a franchise fee or on any terms related thereto, each hereby consents to the jurisdiction of State District Court, Hennepin County, to construe their respective rights under the law, subject to all rights of appeai. Mound City Code 625.35 625.35 LIMITATION ON APPLICABILITY; NO WAIVER. This Ordinance constitutes a franchise agreement between the City and its successors and the Company and its successors and permitted assigns, as the only parties. No provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of an~jone'or more of the terms hereof, or otherwise give rise to any .cause of action in any person not a party hereto. This franchise agreement shall not be interpreted to constitute a waiver by the City of any of its defenses of immunity or limitations on liability under Minnesota Statutes, Chapter 466. 625.40 AMENDMENT PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended. This Ord. may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 60 days after the effective date of the amendatory ordinance. 625.45 PREVIOUS FRANCHISES SUPERSEDED. This franchise supersedes and replaces previous franchises granted to the Company or its predecessors. Upon Company acceptance of this franchise under Section 2.2, the previous franchise shall terminate. (ORD. 12-2002, 7/21/02) 5 7/21/0 2 Mound City Code lO00.15A (q) Operating any water craft, motor vehicle, or powered device, or propelled device, on the open water, or upon the ice of a body of water, in such a manner as to endanger life, limb, or property; (r) Standing upon any street bridge or railroad bridge for purposes of fishing therefrom; (s) Causing to be made any fire on any public beach area or park except in fireplaces designated for that purpose; (0 Any well, hole, or similar excavation which is left uncovered or in such other condition as to constitute a hazard to any child coming on the premises where it is located; (u) Obstruction to the free flow or water in a natural waterway or a public street drain, gutter, or ditch with trash or other materials; (v) The placing or throwing on any street, sidewalk, or other public property or 'any glass, tacks, nails, bottles, or other substance which may injure any person or animal or damage any pneumatic tire when passing over such substance; (w) The depositing of garbage or refuse on a public right-of-way or on adjacent private property. (ORD. #29-1989 - 6-26-89) 1000.20 Duties of City Officers. The Police Department shall enforce the provisions relating to nuisances. Such officers shall have the power to inspect private premises and take all reasonable precautions to prevent the commission and maintenance of public nuisances. in writing the owner or occupant of the premises of such fact and shall order that such nuisance be terminated and abated. The notice shall be served in person or by certified or registered mail. If the premises are not occupied and the owner is unknown, the notice may be served by posting it on the premises. The notice shall specify the steps to be taken to abate the nuisance and the time, not exceeding 10 days, within which the nuisance is to be abated. If the notice is not complied with within the time specified, the enforcing officer shall report that fact forthwith to the Council. Thereafter, the Council may, after notice to the owner or occupant and an opportunity to be heard, provide for abating the nuisance by the City. The notice shall be served in the same manner as notice by the enforcing officer is served and .shall be given at least seven days before the date stated in the notice when the Council will consider the matter. If notice is given by posting, at least 10 days shall elapse between the day of posting the notice and the hearing, and a copy of the notice shall be sent by certified mail to the record owner of the subject property. 2/31/98 Mound City Code 1000. IOA IO00.10A Public Nuisances Affecting Morals and Decency. The following are hereby declared to be public nuisances affecting public morals and decency: (a) All gambling devices, slot machines and punch boards, unless approved as a legal device by the State of Minnesota; (b) Betting, bookmaking, and all apparatus used in such occupations; (c) All houses kept for the purpose of prostitution or promiscuous sexual intercourse, gambling houses, houses of ill fame, and bawdy houses; (d) All places where controlled substances, narcotics, or intoxicating liquor is manufactured or disposed of in violation of law or where, in violation of law, persons are permitted to resort for the purpose of drinking intoxicating liquor or use of controlled substances.or narcotics, or where intoxicating liquor, controlled substances, or narcotics are kept for sale or other disposition in violation of law, and all liquor controlled substances, and narcotics and other property used for maintaining such a place; (e) Any vehicle used for the transportation or intoxicating liquor, or for promiscuous sexual intercourse, or any other immoral or illegal purpose; (f) The use of any fish house, warming house, or other similar structure for any activity listed in (a) through (d) above. public nmsanees affecting lC peace following are declared to be (a) All snow and ice not removed from public sidewalks 12 hours after the snow or other precipitation causing the condition has ceased to fall; (b) All wires and limbs of trees which are so close to the surface of a sidewalk or street as to constitute a danger to pedestrians or vehicles, and all limbs of trees closer to the street surface than 15 feet and all limbs of trees closer to the surface of a sidewalk than 8 feet; (c) Obstructions and excavations affecting the ordinary use by the public of streets, alleys, sidewalks, or public grounds except under such conditions as are permitted by this Section or other applicable law; (d) Radio aerials, radio towers, television antennae, television towers or satellite dishes erected or maintained in a dangerous manner; 2 12/31/98 Mound City Code 1000.1SA (e) Any use of property abutting on a public street or sidewalk or any use of a public street or sidewalk which causes large crowds of people to gather, obstructing traffic and the free uses of the streets or sidewalks; (f) All hanging signs, awnings, and other similar structures over streets and sidewalks, so situated so as to endanger public safety, or not constructed and maintained as provided by this Section; (g) The allowing of rain water, ice, or snow to fall from any building or structure upon any street or sidewalk or to flow across any sidewalk; (h) Waste water cast upon or permitted to flow upon streets or other public property; Accumulations in the open of discarded or disused machinery, household appliances, automobile bodies, or other materials, in a manner conducive to the harboring of rats, mice, snakes, or vermin, or to fire, health, or safety hazards from such accumulation or from the rank growth of vegetation among the items so accumulated; Noxious weeds, as that term is defined in Section 18.171 of Minnesota Statutes, and any excessive growth of other weeds; excessive growth of weeds means weeds or grass which are 12 inches or more in height; (k) Any wire, except clothes line wire, which is strung less than 15 feet above the surface of the ground; (1) Any fence or other structure maliciously erected or maintained for the purpose of annoying the owners or occupants of adjoining property; All buildings, walls, and other structures which have been damaged by fire, decay, or otherwise, and which are so situated as to endanger the safety of the public; (n) All dead standing trees which present a hazard to like or property, all elm or other trees found harboring the Dutch elm beetle, all dead standing elm wood, and ail cut elm or other wood found harboring the Dutch elm beetle; (o) All dangerous, unguarded machinery, including derelict autos, derelict boats, and derelict refrigerators and freezers, in any public place, or so situated or operated on private property as to attract the public; (p) Swimming in a channel or jumping or diving from a channel bridge; 12/31/98 Mound City Code 350.705 The standards shall also apply to existing development where so stated. The City Manager shall be responsible for enforcing the standards. Before any building permit is approved, the Zoning Administrator shall determine whether the proposed use wffi conform to the performance standards. The applicant shall supply all data necessary to domonstrate such conformance. residential districts, all materials and equipment shall be stored within a building or fully screened so as not to be visible from adjoining properties, e~.cept for the following: laundry drying, recreational vehicles, and recreation equipment (see definitions in Subsection 350.310), construction and landscaping materials and equipment currently (within a period of 30 days) being used on the premises, off-street parking of licensed and operative passenger automobiles and pick-up trucks. Storage of recreational vehicles shall be subject to the following: Subd. 1. Storage of recreation vehicles shall be considered either transient or seasonal. Transient storage is defined as the placement of recreational vehicles for periods not exceeding fourteen (14) consecutive days for a specific purpose such as active maintenance or short term living quarters for visitors. Transient storage is permitted providing that it complies with all other sections of the Mound Code of Ordinances. Seasonal storage shall comply with all of the provisions stated herein. Subd. 2. Recreational vehicles may be stored on private property in yard areas consistent with the following setbacks: Front yard - Front yard parking prohibited if over the curb line or in such a manner as to block or impede the safe flow of traffic on the abutting roadway. Side yard - Five (5) feet from the property line. Rear yard - Five (5) feet from the property line. Subd. 21. Stored vehicles shall be currently registered to, owned by, leased to or rented to the owner or renter of the property, and must display proper license. Subd. 4. Storage of'recreational vehicles shall be limited to no more than one (1) vehicle for every fifteen hundred (1500) square feet of lot area up to a maximum of seven (7) vehicles. 90 215100